Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary) Stock Code: 000505, 200505 Stock Name: JLKG, JL-B Announcement No. 2019-054 HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2019 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2019 Semi-annual Report of Hainan Jingliang Holdings Co., Ltd. (together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full understanding of theCompany’s operating results, financial condition and future development plans, investors should carefully read the aforesaid full text, which has been disclosed together with this Summary on the media designated by the China Securities Regulatory Commission (the “CSRC”).
All theCompany’s Directors have attended the Board meeting for the review of this Report and its summary. This Summary has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Independentauditor’s modified opinion:
□ Applicable√ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable√ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable√ Not applicable
Part II Key Corporate Information
1. Stock Profile
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|-|-|-|-|-|
|Stock name|JLKG, JL-B|Stock code||000505, 200505|
|Stock exchange for stock listing|Shenzhen Stock Exchange||||
|Contact information|Board Secretary||Securities Representative||
|Name|Zhao Yinhu||||
||Jing Liang Building, 16 East Third RingMiddle Road, Chaoyang District, Beijing||||
|Office address|||||
|Tel.|010-51672029||||
|E-mail address|593374748@qq.com||||

Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary) 2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
|||||
|-|-|-|-|
||H1 2019|H1 2018|Change (%)|
|Operating revenue (RMB)|3,283,277,725.39|3,639,625,979.41|-9.79%|
|Net profit attributable to the listed|51,510,904.41|59,918,995.68||
||||-14.03%|
|company’s shareholders (RMB)||||
|Net profit attributable to the listed||||
|company’s shareholders before exceptional|41,194,473.59|57,359,036.51|-28.18%|
|gains and losses (RMB)||||
|Net cash generated from/used in operating|220,592,294.21|45,694,542.88||
||||382.75%|
|activities (RMB)||||
|Basic earnings per share (RMB/share)|0.08|0.09|-11.11%|
|Diluted earnings per share (RMB/share)|0.08|0.09|-11.11%|
|Weighted average return on equity (%)|2.24%|2.73%|-0.49%|
||30 June 2019|31 December 2018|Change (%)|
|Total assets (RMB)|5,173,875,154.65|4,917,148,996.28|5.22%|
|Equity attributable to the listed company’s|2,324,031,774.36|2,272,469,925.43||
||||2.27%|
|shareholders (RMB)||||

3. Shareholders and Their Shares at Period-End
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Number of preferred|||||
|Number of ordinary shareholders||40,642|||shareholders with resumed||0|||
||||||voting rights (if any)|||||
|Top 10 shareholders||||||||||
||Nature of||Shareholding|||Restricted||Pledged or frozen shares||
|Name of shareholder||||Number of shares||||||
||shareholder||percentage|||shares||Status|Shares|
|BEIJING GRAIN GROUPCO., LTD.|State-ownedlegal person||42.06%|288,439,561||164,877,598||||
|BEIJING STATE-OWNEDCAPITAL OPERATION ANDMANAGEMENT CENTER|State-ownedlegal person||7.07%|48,510,460||48,510,460||||
|CHINA DEVELOPMENTBANK CAPITAL CO., LTD.|State-ownedlegal person||2.97%|20,393,051||0||||
|LI SHERYN ZHAN MING|Foreign naturalperson||2.69%|18,443,600||0||||
|GOLD BUFFALORUNYING (TIANJIN)EQUITY INVESTMENTFUND MANAGEMENTCO., LTD.—GOLDBUFFALO RUNYING(TIANJIN) EQUITYINVESTMENT FUND (L.P.)|Other||2.20%|15,116,472||0||||
|MEI JIANYING|Domesticnatural person||0.38%|2,604,203||0||||
|HU TIANGAO|Domesticnatural person||0.34%|2,356,052||0||||
|ZHANG XIAOXIA|Domesticnatural person||0.28%|1,949,250||0||||
|WANG XIAOXING|Domesticnatural person||0.25%|1,742,700||0||||

Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary)
||||||
|-|-|-|-|-|
|WANG HANGYI|Domesticnatural person|0.24%|1,666,000|0|
|||Beijing State-Owned Capital Operation and Management Center owns 100%|||
|Connected or acting-in-concert parties among||ownership of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd.|||
|||owns 42.06% shares of the company.. Apart from that, the Company does not|||
|shareholders above|||||
|||know whether there are any other related parties or acting-in-concert parties|||
|||among the top 10 shareholders.|||
|||1. Shareholder Wang Xiaoxing holds 1,742,700 shares in the Company through|||
|||his account of collateral securities for margin trading in Soochow Securities Co.,|||
|||Ltd.|||
|||2. Shareholder Hu Tiangao holds 338,000 shares in the Company through his|||
|||account of collateral securities for margin trading in Zheshang Securities Co.,|||
|Shareholders conducting margin trading (if any)||Ltd., and 2,018,052 shares in the Company through his ordinary securities|||
|||account.|||
|||3. Shareholder Wang Hangyi holds 333,000 shares in the Company through his|||
|||account of collateral securities for margin trading in Zheshang Securities Co.,|||
|||Ltd., and 1,333,000 shares in the Company through his ordinary securities|||
|||account.|||

4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable√ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable√ Not applicable
The actual controller remained the same in the Reporting Period.
5. Numbers of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue before the date of thisReport’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
No.
(1) Overall Performance
In the first half of 2019, the company faces a serious operating enviroment. On one hand, the oils and oilseeds division of the Company took a heavier hit from the China-U.S trade war, with tough operating desicions and
increasing operating cost. On the another hand, as for the African swine fever (ASF), SBM market demand is
weak, which directly impact on the performance of oils and oilseed division with relatively low sales. For this
period, the Company recorded operating revenue of RMB3,283 million, down9.79% year-on-year; and profits of
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary) RMB87.37 million, representing a20.25% decline from a year ago. By operating division, the food division reported operating revenue of RMB452 million (a year-on-year growth of7.60%) and profits of RMB88.99 million (a31.84% year-on-year expansion); and the oils and oilseeds division generated operating revenue of RMB2,831 million (an11.61% year-on-year decrease) and profits of RMB9.18 million (an86.62% year-on-year decrease).
(2) Performance of the Oils and Oilseeds Division
With effect on the China-U.S. trade war and ASF, especially oil crushing business,the Company had to turn to imports from South America and reserved soybeans for raw materials for its oils pressing business due to the trade war. Meanwhile, the decreasing domestic prices of soybean oil and meal severely squeezed profit of the oils processing business and caused a loss in this business, which had a direct impact on the performance of the oils and oilseeds division. Sale of oils in small packages and oils and oilseeds trading progressed steadily as planned by the Board of the Company at the beginning of the year, with stable sales volumes of high added value products such as sunflower seed oil, camelina seed oil, olive oil and non-GMO soybean oil, as well as a further optimized product mix.
(3) Performance of the Food Production Division
The food production division achieved a profit of RMB88.99 million, increasing31.84% year-on-year despite the continuous influx of strategic competing products and the increased competition in the retail sales market, maintaining a steady development momentum. The snack food business adhered to the “differentiated asymmetric competing strategy”, deepened the model of “professional production+ cultural creativity+ Internet”, and made great effort on the strategy of quality products and product transitions. During the Reporting Period, this business realized operating revenue of RMB405 million, increasing4.80% year-on-year, and a profit of RMB85.91 million, increasing30.32% year-on-year. The baking business focused on expanding custom and branded products to keep pace with market demand. During the Reporting Period, this business realized operating revenue of RMB48.02 million, increasing38.94% year-on-year, and a profit of RMB3.08 million, increasing97.47% year-on-year. (4) Performance of the Land Restoration Division
The Company is currently engaged in two land restoration projects, namely, the Jiangsu Xinyi Yaowan Town project and the Tangshan Caofeidian project. After the ownership change, the Xinyi Yaowan Town project started a new round of research and analysis on the project planning. The Tangshan Caofeidian project went on smoothly. Currently in the construction stage, this project is expected to include another 1,183 mu of farmland.
2. Matters Related to Financial Reporting
(1) Changes in Accounting Policies, Accounting Estimates or Measurement Methods Compared to Last Accounting Period
√ Applicable□ Not applicable
① The Ministry of Finance issued from 31 March 2017 the revised versions of certain accounting standards, including the Accounting Standard No. 22 for BusinessEnterprises—Recognition and Measurement of Financial
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary) Instruments (CK[2017] No. 7), the Accounting Standard No. 23 for BusinessEnterprises—Transfer of Financial Assets (CK[2017] No. 8), the Accounting Standard No. 24 for BusinessEnterprises—Hedge Accounting (CK[2017] No. 9), and the Accounting Standard No. 37 for BusinessEnterprises—Presentation of Financial Instruments (CK[2017] No. 14), which were required to be applied, from 1 January 2019, to enterprises listed domestically in China.
② The Ministry of Finance issued in May 2019 the revised versions of the Accounting Standard No. 7 for BusinessEnterprises—Exchange of Non-Monetary Assets (CK[2019] No. 8) and the Accounting Standard No. 12 for BusinessEnterprises—Debt Restructuring (CK[2019] No. 9), which were required to be applied, from 10 and 17 June 2019 respectively, to enterprises adoptingChina’s Accounting Standards for Business Enterprises. (2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period□ Applicable√ Not applicable
No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
√ Applicable□ Not applicable
As reviewed by the 27th meeting of the 8th Board of the Company, theCompany’s wholly-owned subsidiary Beijing Jingliang Food Co., Ltd. was agreed to incorporate Beijing Jingliang Gu Bi Oils Co., Ltd. with RMB50 million. Beijing Jingliang Gu Bi Oils Co., Ltd. was registered with the industrial and commercial administration on 7 May 2019 and therefore included in the consolidated financial statements of the Reporting Period.
Hainan Jingliang Holdings Co., Ltd. 17 August 2019