京粮B:2019年第三季度报告全文(英文版)

Hainan Jingliang Holdings Co., Ltd.                  Third Quarter Report 2019




          HAINAN JINGLIANG HOLDINGS CO., LTD.

                      THIRD QUARTER REPORT 2019




                                      October 2019




                                                                             1
   Hainan Jingliang Holdings Co., Ltd.                                     Third Quarter Report 2019




                                         Part I Important Notes

The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Hainan Jingliang Holdings Co., Ltd. (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires)
hereby guarantee the factuality, accuracy and completeness of the contents of this Report and
its summary, and shall be jointly and severally liable for any misrepresentations, misleading
statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Li Shaoling, the Company’s legal representative, Guan Ying, the Company’s head for
financial affairs, and Liu Quanli, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in this Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.




                                                                                                   2
      Hainan Jingliang Holdings Co., Ltd.                                                                  Third Quarter Report 2019




                                     Part II Key Corporate Information

I Key Consolidated Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.

□ Yes √ No

                                               30 September 2019              31 December 2018                   Change (%)

Total assets (RMB)                                   5,132,178,541.12                4,917,148,996.28                          4.37%

Equity attributable     to     the   listed
                                                     2,358,063,029.90                2,272,469,925.43                          3.77%
company’s shareholders (RMB)

                                                 Q3 2019           YoY change (%)           Q1-Q3 2019            YoY change (%)

Operating revenue (RMB)                        1,824,886,529.92                  -3.94%     5,108,164,255.31                   -7.79%

Net profit attributable to the listed
                                                 33,840,967.80                -20.08%          85,351,872.21                  -16.54%
company’s shareholders (RMB)

Net profit attributable to the listed
company’s     shareholders          before      28,276,307.45                -34.00%          69,470,781.04                  -30.00%
exceptional items (RMB)

Net cash generated from/used in
                                                    --                   --                   446,745,732.08                   6.47%
operating activities (RMB)

Basic earnings per share (RMB/share)                       0.05               -16.67%                    0.12                 -20.00%

Diluted      earnings        per      share
                                                           0.05               -16.67%                    0.12                 -20.00%
(RMB/share)

Weighted average return on equity
                                                         1.48%                -26.00%                   3.69%                 -22.00%
(%)

Exceptional gains and losses:

√ Applicable □ Not applicable
                                                                                                                          Unit: RMB

                                        Item                                              Q1-Q3 2019                   Note

Gain or loss on disposal of non-current assets (inclusive of impairment
                                                                                                 11,265,753.65
allowance write-offs)

Government subsidies recognized in the current period, except for those
acquired in the ordinary course of business or granted at certain quotas or                       3,058,788.87
amounts according to the government’s unified standards

Gains/Losses on fair value changes of trading financial assets and liabilities
& investment income from disposal of trading financial assets and                                 7,948,330.08
liabilities as well as financial assets available for sale (exclusive of

                                                                                                                                        3
        Hainan Jingliang Holdings Co., Ltd.                                                                         Third Quarter Report 2019


effective hedges related to normal business operations of the Company)

Non-operating income and expense other than above                                                        889,800.28

Project confirmed with the definition of non-recurring gains and losses and
                                                                                                        -122,538.24
losses

Less: Income tax effects                                                                               5,760,033.66

         Non-controlling interests effects (net of tax)                                                1,399,009.81

Total                                                                                                 15,881,091.17                --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the

Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the

Public—Exceptional Gain/Loss Items:

□ Applicable √ Not applicable

No such cases for the Reporting Period.


II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2019

1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders

                                                                                                                                        Unit: share

                                                                          Number         of        preferred
Number of ordinary shareholders                                    38,631 shareholders    with     resumed                                        0
                                                                          voting rights (if any)

                                                              Top 10 shareholders

                                                                                                                         Shares in pledge or
                                                 Nature of       Shareholding       Number of          Restricted
            Name of shareholder                                                                                                frozen
                                                shareholder       percentage         shares              shares
                                                                                                                          Status         Shares

                                              State-owned
BEIJING GRAIN GROUP CO., LTD.                                          42.06%        288,439,561        164,877,598
                                              legal person

BEIJING STATE-OWNED CAPITAL
                                              State-owned
OPERATION AND MANAGEMENT                                                7.07%         48,510,460         48,510,460
                                              legal person
CENTER

CHINA         DEVELOPMENT            BANK State-owned
                                                                        2.97%         20,393,051                     0
CAPITAL CO., LTD.                             legal person

                                              Foreign natural
LI SHERYN ZHAN MING                                                     2.54%         17,425,400                     0
                                              person

GOLD           BUFFALO          RUNYING
(TIANJIN) EQUITY INVESTMENT Other                                       2.20%         15,116,472                     0
FUND           MANAGEMENT              CO.,

                                                                                                                                                      4
    Hainan Jingliang Holdings Co., Ltd.                                                                  Third Quarter Report 2019


LTD.—GOLD BUFFALO RUNYING
(TIANJIN) EQUITY INVESTMENT
FUND (L.P.)

                                      Domestic
MEI JIANYING                                                   0.38%         2,604,203                       0
                                      natural person

                                      Domestic
HU TIANGAO                                                     0.34%         2,356,052                       0
                                      natural person

                                      Domestic
ZHANG XIAOXIA                                                  0.28%         1,949,250                       0
                                      natural person

                                      Domestic
WANG XIAOXING                                                  0.25%         1,742,700                       0
                                      natural person

                                      Domestic
LIN LI                                                         0.24%         1,669,600                       0
                                      natural person

                                              Top 10 unrestricted shareholders

                                                                                                         Shares by type
                Name of shareholder                           Unrestricted shares
                                                                                                      Type           Shares

                                                                                              RMB-denominate
BEIJING GRAIN GROUP CO., LTD.                                                123,561,963                             123,561,963
                                                                                              d ordinary stock

                                                                                              RMB-denominate
CHINA DEVELOPMENT BANK CAPITAL CO., LTD.                                         20,393,051                               20,393,051
                                                                                              d ordinary stock

                                                                                              Domestically
LI SHERYN ZHAN MING                                                              17,425,400 listed       foreign          17,425,400
                                                                                              stock

GOLD BUFFALO RUNYING (TIANJIN) EQUITY
INVESTMENT        FUND       MANAGEMENT          CO.,                                         RMB-denominate
                                                                                 15,116,472                               15,116,472
LTD.—GOLD      BUFFALO       RUNYING      (TIANJIN)                                          d ordinary stock
EQUITY INVESTMENT FUND (L.P.)

                                                                                              RMB-denominate
MEI JIANYING                                                                      2,604,203                                2,604,203
                                                                                              d ordinary stock

                                                                                              RMB-denominate
HU TIANGAO                                                                        2,356,052                                2,356,052
                                                                                              d ordinary stock

                                                                                              Domestically
ZHANG XIAOXIA                                                                     1,949,250 listed       foreign           1,949,250
                                                                                              stock

                                                                                              RMB-denominate
WANG XIAOXING                                                                     1,742,700                                1,742,700
                                                                                              d ordinary stock

                                                                                              RMB-denominate
LIN LI                                                                            1,669,600                                1,669,600
                                                                                              d ordinary stock

CHEN OUQIN                                                                        1,652,679 RMB-denominate                 1,652,679


                                                                                                                                       5
     Hainan Jingliang Holdings Co., Ltd.                                                                 Third Quarter Report 2019


                                                                                              d ordinary stock

                                                          Beijing State-Owned Capital Operation And Management Center owns
                                                          100% of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co.,
Related or acting-in-concert parties among shareholders
                                                          Ltd. is a shareholder of the Company (a 42.06% holding). Apart from
above
                                                          that, the Company does not 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.
Top 10 ordinary shareholders involved in securities
                                                          2. Shareholder Hu Tiangao holds 338,000 shares in the Company
margin trading (if any)
                                                          through his account of collateral securities for margin trading in
                                                          Zheshang Securities Co., Ltd. and 2,018,052 shares in the Company
                                                          through his common account.

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary

shareholders of the Company conducted any promissory repo during the Reporting Period.

□ Yea √ No

No such cases in the Reporting Period.


2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them


□ Applicable √ Not applicable




                                                                                                                                 6
        Hainan Jingliang Holdings Co., Ltd.                                                 Third Quarter Report 2019




                                         Part III Significant Events

I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why

√ Applicable □ Not applicable

1. The decrease of monetary capital primarily driven by the repayment of bank borrowings and purchase of

income receipts regarding cash management of raised funds during the Reporting Period.

2. The increase of prepayments primarily driven by the increase of prepayments to suppliers arising from increase

of procurement out of necessity of production and operation during the Reporting Period.

3. The increase of other receivables primarily driven because the charge of warehouse service for Q3 2019 has not

been received yet as at 30 September 2019.

4. The increase of other current assets primarily because the purchase of income receipts regarding cash

management of raised funds during the Reporting Period has not expired yet as at 30 September 2019.

5. The decrease of construction in progress primarily driven by the transfer of some construction in progress into

fixed assets due to completion during the Reporting Period.

6. The increase of other non-current assets primarily driven by the increase of fixed time deposits of more than

one year during the Reporting Period.

7. The increase of notes payable and accounts payable primarily driven by the increase of debts to suppliers

arising from increase of procurement out of necessity of production and operation.

8. The decrease of payroll payable primarily driven by the payment in the Reporting Period of the 2018 annual

performance pay that had been set aside in 2018.

9. The increase of asset disposal income primarily driven by the net income from demolition of some courtyard

walls of the Company located at Luhe, Tongzhou District, Beijing for the eastern expansion of Guangqu Road in

2019.

10. The increase of net cash generated from financing activities primarily driven by bank loan repayment in 2019

out of necessity of production and operation plans.

11. The decrease of net profit attributable to the listed company’s shareholders before exceptional items is

primarily driven by the negative effects on the Sino-US trade friction and the increase of the raw material cost and

others.


                                                                                                                   7
        Hainan Jingliang Holdings Co., Ltd.                                                                    Third Quarter Report 2019


II Progress, Influence and Solutions Associated with Significant Events

√ Applicable □ Not applicable

     Overview of significant events                  Disclosure date                         Announcement index

The Company and its wholly-owned                                        Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
subsidiary Beijing Jingliang Food                     13 July 2019      Suspension of Trading of the Company’s Stocks for Plan of Asset
Co., Ltd. intend to purchase 25.1149%                                   Purchase via Cash Payment and Share Offering (2019-045)
of     equity   interests       in     Zhejiang
                                                                        Cninfo: Indicative Announcement of Hainan Jingliang Holdings
Xiaowangzi Food Share Co, Ltd.                                          Co., Ltd. on Plan of Asset Purchase via Cash Payment and Share
collectively    held     by      six    natural       22 July 2019
                                                                        Offering and Related-party Transactions and Resumption of
persons via cash payment and share                                      Trading of the Company’s Stocks (2019-046)
offering. The six natural persons are
                                                                        Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
Wang Yuecheng, Qiu Xiaobin, Hong
                                                                        Progress of Plan of Asset Purchase via Cash Payment and Share
Muqiang, Zhu Yanjun, Yao Zishan                      21 August 2019
                                                                        Offering and Related-party Transactions after Disclosure thereof
and Shuai Yiwu. The Company held
                                                                        (2019-056)
the board meeting on 19 July 2019, on
which the Proposal on Plan of Asset
Purchase via Cash Payment and
                                                                        Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
Share Offering by Hainan Jingliang
                                                                        Progress of Plan of Asset Purchase via Cash Payment and Share
Holdings Co., Ltd. and its Summary                  21 September 2019
                                                                        Offering and Related-party Transactions after Disclosure thereof
and proposals in relation to this
                                                                        (2019-065)
transaction     were        reviewed         and
approved.

The 8th Board of Directors and the 8th                                  Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
                                                    24 September 2019
Supervisory Committee expired in                                        Changing Directors and Supervisors (2019-067)
September 2019. Then, the Company
                                                                        Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
held the 3rd Extraordinary General
                                                    27 September 2019   Resolutions of the 1st Meeting of the 9th Board of Directors
Meeting of 2019 on 23 September
                                                                        (2019-068)
2019 and approved all proposals in
relation to the general election of the
Board      of       Directors        and     the
Supervisory           Committee              via
cumulative voting and held the 1st
Meeting of the 9th Board of Directors
and the 1st Meeting of the 9th                                          Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on

Supervisory         Committee          on     26    27 September 2019   Resolutions of the 1st Meeting of the 9th Supervisory Committee

September       2019,    on      which       the                        (2019-069)

Chairman of the Board, the Chairman
of the Supervisory Committee and
members of all special committees
were      elected      and      the        senior
management were engaged.

Progress on any share repurchases:

                                                                                                                                           8
        Hainan Jingliang Holdings Co., Ltd.                                                                Third Quarter Report 2019



□ Applicable √ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□ Applicable √ Not applicable


III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during
Reporting Period


□ Applicable √ Not applicable

No such cases in the Reporting Period.


IV Securities Investments

√ Applicable □ Not applicable
                                                                                                                            Unit: RMB
                                                     Gain/Lo
                                                                      Accumu
                                                       ss on
                                                                        lated
                                                     fair-valu                  Purchas         Gain/los
                            Initial         Beginni                   fair-valu         Sold in
Security Security Security          Measure               e                       ed in           s in   Ending Account Funding
                                               ng                          e            Reporti
                           investm ment              changes                    Reporti         Reporti carrying
  type    code     name                     carrying                  changes             ng
                                    method               in                        ng              ng    amount ing title source
                           ent cost         amount                    charged           Period
                                                      Reporti                    Period          Period
                                                                          to
                                                         ng
                                                                       equity
                                                      Period
                                                                               20,647, 20,647,
                                               Cost                                              2,070,7                    Self-rais
Other     204001 GC001                                                        200,000 200,000                       Other
                                               method                                             48.08                     ed
                                                                                   .00     .00

                                               Cost                           300,000 300,000 74,650.                       Self-rais
Other     204004 GC004                                                                                              Other
                                               method                          ,000.00 ,000.00       83                     ed

                                               Cost                           120,200 120,200 119,991.                      Self-rais
Other     204007 GC007                                                                                              Other
                                               method                          ,000.00 ,000.00       46                     ed

                                               Cost                           100,300 100,300 98,005.                       Self-rais
Other     204014 GC014                                                                                              Other
                                               method                          ,000.00 ,000.00       90                     ed

                                                                               21,167, 21,167,
                                                                                                 2,363,3
Total                                   0.00      --    0.00   0.00      0.00 700,000 700,000                0.00      --        --
                                                                                                  96.27
                                                                                   .00     .00

Disclosure         date     of
announcement on Board’s
                                  21 February 2019
consent      for     securities
investments

Disclosure         date     of
                                  N/A
announcement on general


                                                                                                                                        9
         Hainan Jingliang Holdings Co., Ltd.                                                                                          Third Quarter Report 2019


meeting’s          consent     for
securities investments (if
any)


V Wealth Management Entrustment

√ Applicable □ Not applicable
                                                                                                         Unit: RMB’0,000 (in RMB ten thousand yuan)

        Type of wealth                                                                               Outstanding amount
                                       Funding source                        Principal                                                    Overdue amount
         management                                                                                      before maturity

Wealth management
product purchased from Idle raised                                                        38,700                             38,700                                0
securities trader

Wealth management
product purchased from Self-funded                                                         9,030                              3,430                                0
bank

Total                                                                                     47,730                             42,130                                0

High-risk wealth management entrustments with amounts that are individually significant, or with low security,

low liquidity, or no protection of the principal:

√ Applicable □ Not applicable
                                                                                                         Unit: RMB’0,000 (in RMB ten thousand yuan)

                                                                                                                                                         Overv
                                                                                                                      Collec
                                                                                                                                                          iew
                                                                                                                      tion/pa            Throu
                       Type                                                              Refere Expect Actual                                     Any     and
                                                                  Invest                                              yment Impair         gh
                        of                                                     Way        nce      ed     gain/lo                                 plan   index
           Type                         Fundi                      ment                                                 of      ment prescri
Truste                wealth Princi               Start    End                   of      annual earnin ss in                                      for         to
               of                         ng                       with                                               gain/lo allowa bed
    e                 manag      pal               date    date                payba      ized     gs     Report                                 further more
          trustee                       source                    princi                                               ss in nce (if proced
                       ement                                                     ck      return    (if      ing                                  entrust infor
                                                                       pal                                            Report any) ure or
                      product                                                             (%)      any) Period                                   ment matio
                                                                                                                       ing                 not
                                                                                                                                                          n (if
                                                                                                                      Period
                                                                                                                                                          any)

                                                                              Pay
                                                                              the
                                                                                                                                                         www.
                                                                  Agree princi
CITIC Securit Certific                                    14                                                                                             cninfo
                                        Idle                      ment        pal
SECU ies              ation                       4 July Octob                                                        Unred                              .com.c
                                38,700 raised                     of          and        2.70%                    0                      Yes     Yes
RITIE compa of trust                              2019    er                                                          eemed                              n:
                                        capital                   contra earnin
S         ny          receipt                             2019                                                                                           2019-
                                                                  ct          gs at
                                                                                                                                                         044
                                                                              the
                                                                              maturi


                                                                                                                                                                   10
        Hainan Jingliang Holdings Co., Ltd.                                                                            Third Quarter Report 2019


                                                                         ty date
                                                                         of
                                                                         invest
                                                                         ment

Total                          38,700   --        --      --      --          --   --       0         0     --                 --    --        --

Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:

□ Applicable √ Not applicable


VI Investments in Derivative Financial Instruments

√ Applicable □ Not applicable
                                                                                                Unit: RMB’0,000 (in RMB ten thousand yuan)

                                                                                                           Ending investment          Actual
                                                                                         Ending                  as % of the        gain/loss in
        Type of derivative                   Start date                End date
                                                                                        investment        Company’s ending net     Reporting
                                                                                                                   assets             Period

Agricultural product future
                                    1 January 2019             30 September 2019            7,532.71                        3.19%         -4,955.39
contract

Foreign exchange forwards           1 January 2019             30 September 2019                     23                     0.01%            376.1

Total                                            --                       --                7,555.71                        3.20%         -4,579.29

Funding source                      Self-funded

Legal matters involved (if
                                    N/A
applicable)

Disclosure     date   of       board 21 February 2019
announcement           approving
                                    30 March 2019
derivative investment (if any)

Disclosure date of general 9 March 2019
meeting           announcement
approving              derivative 20 April 2019
investment (if any)

                                    The Company’s conduction of hedging business is not aimed at speculation, but mainly to
Analysis of risks and control       effectively avoid the impact of raw material price fluctuation on the Company. However, there will
measures associated with            be certain risks: 1. Price fluctuation risk: price fluctuation risk may be generated when the futures
derivative investments held in market changes greatly, resulting in transaction losses; 2. Capital risk: capital risk may be
Reporting Period (including         correspondingly brought because the futures trading adopts margin and marking-to-market system;
but not limited to market risk, 3. Internal control risk: there may be risks due to imperfect internal control system for the high
liquidity risk, credit risk,        expertise and complexity of futures trading; 4. Technical risk: there may be technical risks due to
operational risk, legal risk,       incomplete computer systems. The Company adopts following risk control measures: 1. Matching
etc.)                               the hedging business with the Company’s production and operation so as to maximally reduce the
                                    price fluctuation risk; 2. The Company will reasonably dispatch its own funds for hedging business,


                                                                                                                                                    11
      Hainan Jingliang Holdings Co., Ltd.                                                                        Third Quarter Report 2019


                                      strictly control the hedging fund scale and reasonably plan and use margins; 3. Management System
                                      of Commodity Futures Trading is formulated at the Company and subsidiaries levels respectively
                                      based on actual situation of the Company and pursuant to governing stipulations of Guidelines for
                                      Standard Operation of Companies Listed in Shenzhen Stock Exchange which have made clearly
                                      stipulations about the amount, variety scope, approval authority, internal approval procedures,
                                      responsible departments and persons, information isolation measures, internal risk report and related
                                      solution process, information disclosure, etc. regarding hedging business. The Company will strictly
                                      control all sectors in accordance with the management system formulated; 4. Establishing qualified
                                      systems for transaction, communication and information services so as to guarantee the normal
                                      operation of the transaction system and smooth proceeding of transactions. When a wrong order
                                      occurs, corresponding measures should be timely taken to reduce losses.

Changes in market prices or
fair value of derivative
investments in Reporting              The value of the Company’s future contracts changed according to the contract prices declared by
Period (fair value analysis           the future exchange, which were broadly representative. And the fair value of the Company’s future
should include measurement            contracts was executed in strict compliance with the future exchange’s settlement methods.
method and related
assumptions and parameters)

Major changes in accounting
policies      and          specific
accounting principles adopted
                                      N/A
for derivative investments in
Reporting Period compared to
last reporting period

                                      The relevant decision-making procedures for the Company and its majority-owned subsidiaries to
                                      conduct foreign exchange derivatives trading business are in compliance with relevant national
                                      laws, regulations and the governing provisions of the Articles of Association after verification.
Opinion     of      independent Based on normal production and operation, the Company uses foreign exchange derivatives
directors     on        derivative instruments to reduce exchange rate risks and finance costs, and control business risks. There is no
investments and risk control          harm to the interests of the Company and all other shareholders, especially minority shareholders. It
                                      is agreed that the Company and its majority-owned subsidiaries will conduct foreign exchange
                                      derivative trading business within the consideration amount, and submit to the general meeting for
                                      deliberation.


VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period


□ Applicable √ Not applicable

No such cases in the Reporting Period.




                                                                                                                                         12
      Hainan Jingliang Holdings Co., Ltd.                              Third Quarter Report 2019


VIII Irregularities in Provision of Guarantees for External Parties


□ Applicable √ Not applicable

No such cases in the Reporting Period.


IX Occupation of the Company’s Capital by Controlling Shareholder or Its Related Parties
for Non-Operating Purposes


□ Applicable √ Not applicable

No such cases in the Reporting Period.




                                                                                             13
       Hainan Jingliang Holdings Co., Ltd.                                              Third Quarter Report 2019




                                         Part IV Financial Statements

I Financial Statements

1. Consolidated Balance Sheet

Prepared by Hainan Jingliang Holdings Co., Ltd.
                                                    30 September 2019
                                                                                                      Unit: RMB

                    Item                          30 September 2019                31 December 2018

Current assets:

  Monetary capital                                              495,666,232.11                   924,870,016.78

  Settlement reserve

  Interbank loans granted

  Trading financial assets

  Financial assets at fair value through
profit or loss

  Derivative financial assets                                    49,872,120.50                    71,260,414.60

  Notes receivable

  Accounts receivable                                            95,540,151.58                    97,775,710.11

  Accounts receivable financing

  Prepayments                                                   430,689,409.61                   120,181,442.89

  Premiums receivable

  Reinsurance receivables

  Receivable      reinsurance    contract
reserve

  Other receivables                                              65,460,014.32                    18,256,513.93

     Including: Interests receivable                                  483,694.45                   2,400,877.51

                  Dividends receivable

  Financial assets purchased under
resale agreements

  Inventories                                                   992,709,551.35                 1,224,186,963.07

  Contractual assets

  Assets classified as held for sale

  Current portion of non-current assets



                                                                                                              14
       Hainan Jingliang Holdings Co., Ltd.                      Third Quarter Report 2019


  Other current assets                        836,609,741.86             288,821,816.63

Total current assets                         2,966,547,221.33          2,745,352,878.01

Non-current assets:

  Loans and advances to customers

  Investments in debt obligations

  Available-for-sale financial assets                                     20,000,000.00

  Investments in other debt obligations

  Held-to-maturity investments

  Long-term receivables

  Long-term equity investments                187,325,274.16             182,827,226.11

  Investments in other equity
                                               20,000,000.00
instruments

  Other non-current financial assets

  Investment property                          32,184,788.51              33,395,101.68

  Fixed assets                               1,241,030,763.35          1,271,803,080.56

  Construction in progress                     27,249,683.31              37,369,757.78

  Productive living assets

  Oil and gas assets

  Right-of-use assets

  Intangible assets                           373,516,890.08             383,382,527.68

  R&D expense

  Goodwill                                    191,394,422.51             191,394,422.51

  Long-term prepaid expense                    23,950,504.42              34,671,018.22

  Deferred income tax assets                   13,978,993.45              15,330,980.14

  Other non-current assets                     55,000,000.00               1,622,003.59

Total non-current assets                     2,165,631,319.79          2,171,796,118.27

Total assets                                 5,132,178,541.12          4,917,148,996.28

Current liabilities:

  Short-term borrowings                      1,139,402,578.70          1,437,715,080.91

  Borrowings from central bank

  Interbank loans obtained

  Trading financial liabilities

  Financial liabilities at fair value
through profit or loss
  Derivative financial liabilities


                                                                                      15
       Hainan Jingliang Holdings Co., Ltd.                       Third Quarter Report 2019


     Notes payable

     Accounts payable                          336,251,875.67             140,564,713.11

     Advances from customers                   324,648,928.69             145,317,064.18

     Contractual liabilities

     Financial assets sold under
repurchase agreements

  Customer deposits and interbank
deposits
  Payables     for    acting   trading   of
securities
  Payables      for    underwriting      of
securities

  Payroll payable                               11,003,826.95              31,494,568.05

  Taxes payable                                 38,933,903.00              35,783,819.84

  Other payables                               165,377,948.13             111,288,708.99

     Including: Interest payable                25,010,702.02              26,972,826.90

                 Dividends payable              11,013,302.88              11,197,317.01

  Handling charges and commissions
payable

  Reinsurance payable

  Liabilities directly associated with
assets classified as held for sale

  Current portion of non-current
liabilities

  Other current liabilities                                                11,100,915.25

Total current liabilities                     2,015,619,061.14          1,913,264,870.33

Non-current liabilities:

  Insurance contract reserve

  Long-term borrowings

  Bonds payable

     Including: Preferred shares

                 Perpetual bonds

  Lease liabilities

  Long-term payables

  Long-term payroll payable                     40,245,406.52              40,245,406.52

  Provisions



                                                                                       16
       Hainan Jingliang Holdings Co., Ltd.                                                     Third Quarter Report 2019


  Deferred income                                             73,743,596.30                                74,953,385.51

  Deferred income tax liabilities                             65,140,818.53                                49,618,839.47

  Other non-current liabilities

Total non-current liabilities                                179,129,821.35                              164,817,631.50

Total liabilities                                          2,194,748,882.49                            2,078,082,501.83

Owners’ equity:

  Share capital                                              685,790,364.00                              685,790,364.00

  Other equity instruments

     Including: Preferred shares

                    Perpetual bonds

  Capital reserves                                          1,595,711,805.31                           1,595,711,805.31

  Less: Treasury stock

  Other comprehensive income                                       241,670.59                                     438.33

  Special reserves

  Surplus reserves                                           122,122,436.98                              122,122,436.98

  General reserve

  Retained earnings                                           -45,803,246.98                             -131,155,119.19

Total equity attributable to owners of
                                                           2,358,063,029.90                            2,272,469,925.43
the Company as the parent

Non-controlling interests                                    579,366,628.73                              566,596,569.02

Total owners’ equity                                      2,937,429,658.63                            2,839,066,494.45

Total liabilities and owners’ equity                      5,132,178,541.12                            4,917,148,996.28

Legal representative: Li Shaoling                                               Head for financial affairs: Guan Ying


Head of the financial department: Liu Quanli


2. Balance Sheet of the Company as the Parent

                                                                                                               Unit: RMB

                     Item                      30 September 2019                         31 December 2018

Current assets:

  Monetary capital                                             3,806,520.59                                13,597,659.66

  Trading financial assets

  Financial assets at fair value through
profit or loss

  Derivative financial assets



                                                                                                                        17
      Hainan Jingliang Holdings Co., Ltd.                      Third Quarter Report 2019


  Notes receivable

  Accounts receivable                             74,460.00                  79,986.00

  Accounts receivable financing

  Prepayments                                     19,000.00                  20,000.00

  Other receivables                           31,789,102.45                 227,353.10

     Including: Interest receivable

                 Dividends receivable

  Inventories                                  4,824,035.45               4,824,035.45

  Contractual assets

  Assets classified as held for sale

  Current portion of non-current assets

  Other current assets                         2,234,896.21               1,962,371.32

Total current assets                          42,748,014.70              20,711,405.53

Non-current assets:

  Investments in debt obligations

  Available-for-sale financial assets                                    20,000,000.00

  Investments in other debt obligations

  Held-to-maturity investments

  Long-term receivables

  Long-term equity investments              2,377,420,527.10          2,375,639,964.05

  Investments in other equity
                                              20,000,000.00
instruments

  Other non-current financial assets

  Investment property                          5,551,966.88               5,778,794.33

  Fixed assets                                 3,232,789.18               3,260,620.04

  Construction in progress

  Productive living assets

  Oil and gas assets

  Right-of-use assets

  Intangible assets                               94,088.04                 171,069.18

  R&D expense

  Goodwill

  Long-term prepaid expense                      110,062.84                 180,817.60

  Deferred income tax assets




                                                                                     18
       Hainan Jingliang Holdings Co., Ltd.                        Third Quarter Report 2019


  Other non-current assets

Total non-current assets                       2,406,409,434.04          2,405,031,265.20

Total assets                                   2,449,157,448.74          2,425,742,670.73

Current liabilities:

  Short-term borrowings

  Trading financial liabilities

  Financial liabilities at fair value
through profit or loss

  Derivative financial liabilities

  Notes payable

  Accounts payable

  Advances from customers                            38,896.41                  38,896.41

  Contractual liabilities

  Payroll payable                                   376,482.76                 438,195.96

  Taxes payable                                     992,416.59                 976,458.68

  Other payables                                509,692,210.91             449,947,050.56

     Including: Interest payable                 21,082,795.47              21,082,795.47

                 Dividends payable                3,213,302.88               3,213,302.88

  Liabilities directly associated with
assets classified as held for sale
  Current      portion      of   non-current
liabilities

  Other current liabilities

Total current liabilities                       511,100,006.67             451,400,601.61

Non-current liabilities:

  Long-term borrowings

  Bonds payable

     Including: Preferred shares

                 Perpetual bonds

  Lease liabilities

  Long-term payables

  Long-term payroll payable

  Provisions

  Deferred income

  Deferred income tax liabilities




                                                                                        19
       Hainan Jingliang Holdings Co., Ltd.                                  Third Quarter Report 2019


  Other non-current liabilities

Total non-current liabilities

Total liabilities                                         511,100,006.67               451,400,601.61

Owners’ equity:

  Share capital                                           685,790,364.00               685,790,364.00

  Other equity instruments

     Including: Preferred shares

                    Perpetual bonds

  Capital reserves                                   2,173,387,468.71                 2,173,387,468.71

  Less: Treasury stock

  Other comprehensive income

  Special reserves

  Surplus reserves                                        109,487,064.39               109,487,064.39

  Retained earnings                                  -1,030,607,455.03                -994,322,827.98

Total owners’ equity                                1,938,057,442.07                 1,974,342,069.12

Total liabilities and owners’ equity                2,449,157,448.74                 2,425,742,670.73


3. Consolidated Income Statement for Q3

                                                                                            Unit: RMB

                      Item                     Q3 2019                      Q3 2018

1. Revenue                                               1,824,886,529.92             1,899,805,985.97

  Including: Operating revenue                           1,824,886,529.92             1,899,805,985.97

               Interest income

               Premium income

               Handling         charge   and
commission income

2. Costs and expenses                                    1,764,674,515.46             1,806,906,735.47

  Including: Cost of sales                               1,652,610,736.57             1,703,299,548.14

               Interest expense

               Handling         charge   and
commission expense

               Surrenders

               Net claims paid

               Net amount provided as
policy reserve



                                                                                                    20
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                 Expenditure         on      policy
dividends
                 Reinsurance              premium
expense

                 Taxes and surcharges                   5,490,323.70              4,706,132.09

                 Selling expense                       50,699,252.02             48,195,311.31

                 Administrative expense                47,487,578.68             52,378,722.27

                 R&D expense                             703,632.42                 349,299.58

                 Finance costs                          7,682,992.07             -2,022,277.92

                   Including:               Interest
                                                       29,919,400.39             28,498,954.62
expense

                                          Interest
                                                       22,365,123.69             12,702,511.85
income

Add: Other income                                       1,908,875.68              3,420,131.60

             Return on investment (“-” for
                                                        1,089,429.46              5,574,816.04
loss)

             Including: Share of profit or
loss of joint ventures and associates

         Derecognition income of financial
assets      measured at amortized cost

         Foreign exchange gain (“-” for
loss)
         Net gain on exposure hedges (“-”
for loss)

         Gain on changes in fair value (“-”
                                                         -512,728.81            -36,001,451.60
for loss)

          Credit impairment loss (“-” for
loss)

          Assets impairment loss (“-” for
                                                            1,193.30               -203,532.58
loss)

         Asset disposal income (“-” for
                                                         -733,109.31             -1,607,843.98
loss)

3. Operating profit (“-” for loss)                   61,965,674.78             64,081,369.98

Add: Non-operating income                                539,843.22                 983,957.85

Less: Non-operating expense                             1,127,254.62                276,289.34

4. Profit before tax (“-” for loss)                  61,378,263.38             64,789,038.49

Less: Income tax expense                               15,853,529.76              9,498,223.59

5. Net profit (“-” for net loss)                     45,524,733.62             55,290,814.90



                                                                                             21
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  5.1 By operating continuity

      5.1.1 Net profit from continuing
                                                   45,524,733.62             55,290,814.90
operations (“-” for net loss)

      5.1.2 Net profit from discontinued
operations (“-” for net loss)

  5.2 By ownership

      5.2.1 Net profit attributable to
                                                   33,840,967.80             42,345,394.93
owners of the Company as the parent
      5.2.2 Net profit attributable to
                                                   11,683,765.82             12,945,419.97
non-controlling interests
6. Other comprehensive income, net of
                                                     190,287.74                 264,437.23
tax
  Attributable to owners of the Company
                                                     190,287.74                 264,437.23
as the parent
      6.1    Items     that    will     not   be
reclassified to profit or loss
         6.1.1     Changes        caused      by
remeasurements         on     defined    benefit
pension schemes
         6.1.2       Other      comprehensive
income that will not be reclassified to
profit or loss under the equity method
         6.1.3 Changes in the fair value of
investments in other equity instruments
         6.1.4 Changes in the fair value of
the company’s credit risks

         6.1.5 Other

      6.2 Items that will be reclassified to
                                                     190,287.74                 264,437.23
profit or loss
         6.2.1       Other      comprehensive
income that will be reclassified to profit
or loss under the equity method
         6.2.2 Changes in the fair value of
investments in other debt obligations
         6.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial
assets
         6.2.4       Other      comprehensive
income arising from the reclassification
of financial assets
         6.2.5 Gain/Loss arising from the
reclassification       of     held-to-maturity



                                                                                         22
         Hainan Jingliang Holdings Co., Ltd.                                                          Third Quarter Report 2019


investments to available-for-sale financial
assets
         6.2.6    Allowance         for      credit
impairments in investments in other debt
obligations
         6.2.7 Reserve for cash flow
hedges
         6.2.8 Differences arising from the
translation                 of             foreign
                                                                        190,287.74                                  264,437.23
currency-denominated                      financial
statements

         6.2.9 Other

  Attributable         to        non-controlling
interests

7. Total comprehensive income                                        45,715,021.36                               55,555,252.13

  Attributable to owners of the Company
                                                                     34,031,255.54                               42,609,832.16
as the parent
  Attributable         to        non-controlling
                                                                     11,683,765.82                               12,945,419.97
interests

8. Earnings per share

  8.1 Basic earnings per share                                                0.05                                           0.06

  8.2 Diluted earnings per share                                              0.05                                           0.06

Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMBXXX, with the amount for the same period of last year being RMBXXX.

Legal representative: Li Shaoling                                               Head for financial affairs: Guan Ying


Head of the financial department: Liu Quanli


4. Income Statement of the Company as the Parent for Q3

                                                                                                                        Unit: RMB

                    Item                                 Q3 2019                                    Q3 2018

1. Operating revenue                                                          0.00                                           0.00

Less: Cost of sales                                                           0.00                                      75,609.15

     Taxes and surcharges                                                33,908.40                                      32,242.73

     Selling expense

     Administrative expense                                          10,567,161.77                                8,498,118.65

     R&D expense

     Finance costs                                                    4,064,326.05                                3,587,578.96



                                                                                                                               23
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          Including: Interest expense              4,067,234.62               3,588,242.50

                      Interest income                  3,054.57                   2,774.94

Add: Other income

         Return on investment (“-” for
loss)

            Including: Share of profit or
loss of joint ventures and associates

          Derecognition income of
financial assets     measured at amortized
cost

         Net gain on exposure hedges (“-”
for loss)

         Gain on changes in fair value (“-”
for loss)

          Credit impairment loss (“-” for
loss)

          Assets impairment loss (“-” for
                                                           0.00                    -580.00
loss)

          Asset disposal income (“-” for
loss)

2. Operating profit (“-” for loss)              -14,665,396.22            -12,194,129.49

Add: Non-operating income

Less: Non-operating expense

3. Profit before tax (“-” for loss)             -14,665,396.22            -12,194,129.49

Less: Income tax expense

4. Net profit (“-” for net loss)                -14,665,396.22            -12,194,129.49

  4.1      Net   profit   from continuing
                                                  -14,665,396.22
operations (“-” for net loss)

  4.2 Net profit from discontinued
operations (“-” for net loss)

5. Other comprehensive income, net of
tax
  5.1 Items that will not be reclassified
to profit or loss
        5.1.1    Changes       caused        by
remeasurements on defined benefit
pension schemes
        5.1.2 Other comprehensive income
that will not be reclassified to profit or


                                                                                         24
         Hainan Jingliang Holdings Co., Ltd.                                         Third Quarter Report 2019


loss under the equity method
     5.1.3 Changes in the fair value of
investments in other equity instruments
     5.1.4 Changes in the fair value of
the company’s credit risks

     5.1.5 Other

  5.2 Items that will be reclassified to
profit or loss
     5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
     5.2.2 Changes in the fair value of
investments in other debt obligations
     5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial
assets
     5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
     5.2.5 Gain/Loss arising from the
reclassification        of         held-to-maturity
investments        to             available-for-sale
financial assets
     5.2.6       Allowance             for      credit
impairments in investments in other
debt obligations

     5.2.7 Reserve for cash flow hedges

     5.2.8 Differences arising from the
translation                  of               foreign
currency-denominated                         financial
statements

     5.2.9 Other

6. Total comprehensive income                                     -14,665,396.22                -12,194,129.49

7. Earnings per share

    7.1 Basic earnings per share

    7.2 Diluted earnings per share


5. Consolidated Income Statement for Q1~Q3

                                                                                                    Unit: RMB

                        Item                             Q1~Q3 2019                Q1~Q3 2018



                                                                                                            25
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1. Revenue                                         5,108,164,255.31          5,539,431,965.38

  Including: Operating revenue                     5,108,164,255.31          5,539,431,965.38

               Interest income

               Premium income

               Handling        charge       and
commission income

2. Operating costs and expenses                    5,018,488,742.07          5,367,776,105.45

  Including: Cost of sales                         4,693,289,477.71          5,038,627,672.46

               Interest expense

               Handling        charge       and
commission expense

               Surrenders

               Net claims paid

               Net amount provided as
policy reserve

               Expenditure       on      policy
dividends
               Reinsurance            premium
expense

               Taxes and surcharges                  17,090,887.34              19,018,278.45

               Selling expense                      151,930,390.29             139,821,320.67

               Administrative expense               128,785,807.05             135,753,834.87

               R&D expense                            1,234,698.42               1,072,960.08

               Finance costs                         26,157,481.26              33,482,038.92
                  Including:            Interest
                                                     52,900,693.46              80,549,317.31
expense

                                      Interest
                                                     26,485,752.27              28,499,809.74
income

Add: Other income                                    11,779,973.90               8,937,425.37

         Investment income (“-” for loss)          10,268,731.55              16,487,429.06

         Including: Share of profit or loss
of joint ventures and associates

            Derecognition income of
financial assets measured at amortized
cost

         Foreign exchange gain (“-” for
loss)

         Net gain on exposure hedges (“-”


                                                                                            26
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for loss)

          Gain on changes in fair value (“-”
                                                       25,645,552.41            -22,110,484.16
for loss)

          Credit impairment loss (“-” for
loss)

          Assets impairment loss (“-” for
                                                         -196,502.26                278,887.16
loss)

          Asset disposal income (“-” for
                                                       11,264,409.09             -1,796,072.16
loss)

3. Operating profit (“-” for loss)                  148,437,677.93            173,453,045.20

Add: Non-operating income                               2,256,286.81             10,781,378.60

Less: Non-operating expense                             1,949,673.24              9,896,461.65

4. Profit before tax (“-” for loss)                 148,744,291.50            174,337,962.15

Less: Income tax expense                               37,975,305.88             44,488,495.00

5. Net profit (“-” for net loss)                    110,768,985.62            129,849,467.15

  5.1 By operating continuity (“-” for net
loss)

        5.1.1 Net profit from continuing
                                                      110,768,985.62            129,849,467.15
operations (“-” for net loss)

        5.1.2 Net profit from discontinued
operations (“-” for net loss)

  5.2 By ownership

        5.2.1 Net profit attributable to
                                                       85,351,872.21            102,264,390.61
owners of the Company as the parent

        5.2 2. Net profit attributable to
                                                       25,417,113.41             27,585,076.54
non-controlling interests

6. Other comprehensive income, net of
                                                         241,232.26                 449,844.98
tax
  Attributable to owners of the Company
                                                         241,232.26                 449,844.98
as the parent
        6.1   Items    that    will     not     be
reclassified to profit or loss
          6.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
          6.1.2       Share       of          other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method



                                                                                             27
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         6.1.3 Changes in the fair value of
investments in other equity instruments
         6.1.4 Changes in the fair value of
the company’s credit risks

         6.1.5 Other

     6.2 Items that may subsequently be
                                                       241,232.26                 449,844.98
reclassified to profit or loss
         6.2.1        Share        of      other
comprehensive income of investees that
will be reclassified to profit or loss under
equity method

         6.2.2 Changes in the fair value of
investments in other debt obligations

         6.2.3 Gain/Loss on changes in fair
value of available-for-sale financial
assets

         6.2.4. Other comprehensive
income arising from the reclassification
of financial assets

         6.2.5 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale financial
assets

         6.2.6 Allowance for credit
impairments in investments in other debt
obligations

         6.2.7 Reserve for cash flow
hedges

         6.2.8 Differences arising from
translation                 of           foreign
                                                       241,232.26                 449,844.98
currency-denominated                    financial
statements

         6.2.9 Other

  Attributable         to        non-controlling
interests

7. Total comprehensive income                       111,010,217.88            130,299,312.13

  Attributable to owners of the Company
                                                    85,593,104.47             102,714,235.59
as the parent
  Attributable         to        non-controlling
                                                     25,417,113.41             27,585,076.54
interests

8. Earnings per share



                                                                                           28
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   8.1 Basic earnings per share                                               0.12                                           0.15

   8.2 Diluted earnings per share                                             0.12                                           0.15

Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMBXXX, with the amount for the same period of last year being RMBXXX.

Legal representative: Li Shaoling                                               Head for financial affairs: Guan Ying


Head of the financial department: Liu Quanli


6. Income Statement of the Company as the Parent for Q1~Q3

                                                                                                                        Unit: RMB

                     Item                              Q1~Q3 2019                                 Q1~Q3 2018

1. Operating revenue                                                          0.00                                           0.00

Less: Cost of sales                                                           0.00                                  226,827.45

        Taxes and surcharges                                            102,985.20                                1,046,593.89

        Selling expense

        Administrative expense                                       24,078,567.37                               14,511,777.95

        R&D expense

        Finance costs                                                11,629,290.32                                9,982,985.70

          Including: Interest expense                                11,638,818.11                               10,929,291.28

                        Interest income                                  14,138.40                                  954,302.98

Add: Other income

         Investment income (“-” for loss)

           Including: Share of profit or
loss of joint ventures and associates

          Derecognition income of
financial assets measured at amortized
cost

          Net gain on exposure hedges
(“-” for loss)

          Gain on changes in fair value
(“-” for loss)

          Credit impairment loss (“-” for
loss)

          Assets impairment loss (“-” for
                                                                         -4,344.16                                      98,668.41
loss)

         Asset disposal income (“-” for



                                                                                                                               29
         Hainan Jingliang Holdings Co., Ltd.                     Third Quarter Report 2019


loss)

2. Operating profit (“-” for loss)            -35,815,187.05            -25,669,516.58

Add: Non-operating income

Less: Non-operating expense                        469,440.00                     100.00

3. Profit before tax (“-” for loss)           -36,284,627.05            -25,669,616.58

Less: Income tax expense

4. Net profit (“-” for net loss)              -36,284,627.05            -25,669,616.58

  4.1      Net   profit     from continuing
                                                -36,284,627.05
operations (“-” for net loss)

  4.2 Net profit from discontinued
operations (“-” for net loss)

5. Other comprehensive income, net of
tax
  5.1 Items that will not be reclassified
to profit or loss
        5.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
        5.1.2       Share        of     other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method

        5.1.3 Changes in the fair value of
investments in other debt obligations

        5.1.4 Changes in the fair value of
the company’s credit risks

        5.1.5 Other

  5.2 Items that may subsequently be
reclassified to profit or loss
        5.2.1       Share        of     other
comprehensive income of investees that
will be reclassified to profit or loss
under equity method

        5.2.2 Changes in the fair value of
investments in other debt obligations

        5.2.3 Gain/Loss on changes in fair
value of available-for-sale financial
assets

        5.2.4 Other comprehensive income
arising from the reclassification of


                                                                                       30
        Hainan Jingliang Holdings Co., Ltd.                                     Third Quarter Report 2019


financial assets

     5.2.5 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale
financial assets

     5.2.6 Allowance for credit
impairments in investments in other
debt obligations

     5.2.7 Reserve for cash flow hedges

     5.2.8 Differences arising from
translation              of          foreign
currency-denominated                financial
statements

     5.2.9 Other

6. Total comprehensive income                                -36,284,627.05                -25,669,616.58

7. Earnings per share

    7.1 Basic earnings per share

    7.2 Diluted earnings per share


7. Consolidated Cash Flow Statement for Q1~Q3

                                                                                               Unit: RMB

                     Item                       Q1~Q3 2019                    Q1~Q3 2018

1. Cash flows from operating activities:

  Proceeds from sale of commodities
                                                        5,561,175,595.39               6,089,990,408.11
and rendering of services
  Net increase in customer deposits and
interbank deposits
  Net increase in borrowings from
central bank
  Net increase in loans from other
financial institutions
  Premiums         received    on   original
insurance contracts

  Net proceeds from reinsurance

  Net     increase     in     deposits   and
investments of policy holders
  Interest,    handling       charges    and
commissions received

  Net increase in interbank loans



                                                                                                       31
       Hainan Jingliang Holdings Co., Ltd.                              Third Quarter Report 2019


obtained

  Net increase in proceeds from
repurchase transactions

  Net proceeds from acting trading of
securities

  Tax rebates                                            8,511,133.41             11,907,624.39

  Cash generated from other operating
                                                     1,018,233,943.12          1,766,762,056.68
activities
Subtotal      of     cash       generated    from
                                                     6,587,920,671.92          7,868,660,089.18
operating activities
  Payments          for        commodities     and
                                                     4,955,576,528.87          5,488,803,432.64
services
  Net increase in loans and advances to
customers
  Net increase in deposits in central
bank and in interbank loans granted
  Payments for claims on original
insurance contracts

  Net increase in interbank loans
granted

  Interest,        handling        charges     and
commissions paid

  Policy dividends paid

  Cash paid to and for employees                      225,542,724.31             215,823,143.63

  Taxes paid                                          113,872,002.20             149,429,869.38

  Cash       used         in    other   operating
                                                      846,183,684.46           1,595,019,949.04
activities
Subtotal of cash used in operating
                                                     6,141,174,939.84          7,449,076,394.69
activities
Net   cash         generated       from/used    in
                                                      446,745,732.08             419,583,694.49
operating activities

2. Cash flows from investing activities:

  Proceeds from disinvestment                        1,451,236,691.57          1,647,338,090.45

  Return on investment                                 24,608,980.29              22,660,696.79

  Net proceeds from the disposal of
fixed assets, intangible assets and other                  69,211.68                 624,362.84
long-lived assets
  Net proceeds from the disposal of
subsidiaries and other business units
  Cash generated from other investing
                                                                                  94,375,000.00
activities


                                                                                              32
         Hainan Jingliang Holdings Co., Ltd.                               Third Quarter Report 2019


Subtotal       of     cash      generated        from
                                                        1,475,914,883.54          1,764,998,150.08
investing activities
  Payments for the acquisition of fixed
assets, intangible assets and other                       41,645,608.65              44,298,838.25
long-lived assets

  Payments for investments                              1,921,580,563.05          1,944,330,000.00

  Net increase in pledged loans granted

  Net payments for the acquisition of
                                                                                     47,954,985.00
subsidiaries and other business units
  Cash       used       in      other     investing
                                                                 752.21             289,112,694.38
activities
Subtotal of cash used in investing
                                                        1,963,226,923.91          2,325,696,517.63
activities
Net     cash        generated     from/used        in
                                                        -487,312,040.37            -560,698,367.55
investing activities

3. Cash flows from financing activities:

  Capital contributions received                                                    126,553,500.00

       Including: Capital contributions by
non-controlling interests to subsidiaries

  Borrowings obtained                                   1,633,175,871.20          1,705,500,818.73

  Cash generated from other financing
                                                                                  4,857,675,313.61
activities
Subtotal       of     cash      generated        from
                                                        1,633,175,871.20          6,689,729,632.34
financing activities

  Repayments of borrowings                              1,929,842,758.45          1,917,644,873.55

  Payments for interest and dividends                     75,821,378.17              98,022,459.14

       Including:       Dividends         paid    by
subsidiaries to non-controlling interests
  Cash       used       in    other       financing
                                                                                  4,891,136,552.93
activities
Subtotal of cash used in financing
                                                        2,005,664,136.62          6,906,803,885.62
activities
Net     cash        generated     from/used        in
                                                        -372,488,265.42            -217,074,253.28
financing activities
4. Effect of foreign exchange rate
                                                           3,782,563.49              19,414,338.66
changes on cash and cash equivalents
5. Net increase in cash and cash
                                                        -409,272,010.22            -338,774,587.68
equivalents
Add:      Cash       and     cash       equivalents,
                                                         867,870,016.78           1,014,438,663.43
beginning of the period
6. Cash and cash equivalents, end of the
                                                         458,598,006.56             675,664,075.75
period


                                                                                                 33
       Hainan Jingliang Holdings Co., Ltd.                                           Third Quarter Report 2019


8. Cash Flow Statement of the Company as the Parent for Q1~Q3

                                                                                                    Unit: RMB

                      Item                           Q1~Q3 2019                    Q1~Q3 2018

1. Cash flows from operating activities:

  Proceeds from sale of commodities
and rendering of services

  Tax rebates                                                          1,800.00                        750.00

  Cash generated from other operating
                                                                  33,566,371.69                 58,581,113.47
activities
Subtotal     of     cash        generated    from
                                                                  33,568,171.69                 58,581,863.47
operating activities
  Payments          for        commodities     and
                                                                      25,453.09                     87,700.45
services

  Cash paid to and for employees                                  17,908,969.70                 12,261,894.85

  Taxes paid                                                         105,317.14                  5,670,439.48

  Cash       used         in    other   operating
                                                                  52,051,442.98                 57,497,384.43
activities
Subtotal of cash used in operating
                                                                  70,091,182.91                 75,517,419.21
activities
Net   cash        generated        from/used    in
                                                                  -36,523,011.22                -16,935,555.74
operating activities

2. Cash flows from investing activities:

  Proceeds from disinvestment

  Return on investment

  Net proceeds from the disposal of
fixed assets, intangible assets and other                                                           -34,427.35
long-lived assets
  Net proceeds from the disposal of
subsidiaries and other business units
  Cash generated from other investing
activities
Subtotal     of     cash        generated    from
                                                                           0.00                     -34,427.35
investing activities
  Payments for the acquisition of fixed
assets, intangible assets and other                                  187,564.80                    214,550.26
long-lived assets

  Payments for investments                                         1,780,563.05                 39,000,000.00

  Net payments for the acquisition of
subsidiaries and other business units

  Cash       used         in    other   investing


                                                                                                            34
         Hainan Jingliang Holdings Co., Ltd.                                   Third Quarter Report 2019


activities
Subtotal of cash used in investing
                                                      1,968,127.85                       39,214,550.26
activities
Net    cash        generated     from/used     in
                                                     -1,968,127.85                      -39,248,977.61
investing activities

3. Cash flows from financing activities:

  Capital contributions received

  Borrowings obtained                                28,700,000.00                       75,900,000.00

  Cash generated from other financing
activities
Subtotal      of     cash      generated    from
                                                     28,700,000.00                       75,900,000.00
financing activities

  Repayments of borrowings                                                               16,000,000.00

  Payments for interest and dividends                                                     3,649,220.00

  Cash       used      in    other     financing
activities
Subtotal of cash used in financing
                                                              0.00                       19,649,220.00
activities
Net    cash        generated     from/used     in
                                                     28,700,000.00                       56,250,780.00
financing activities
4. Effect of foreign exchange rate
changes on cash and cash equivalents
5. Net increase in cash and cash
                                                     -9,791,139.07                           66,246.65
equivalents
Add:      Cash      and     cash     equivalents,
                                                     13,597,659.66                       15,360,177.32
beginning of the period
6. Cash and cash equivalents, end of the
                                                      3,806,520.59                       15,426,423.97
period


II Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the Execution of any New Standards
Governing Financial Instruments, Revenue or Leases from 2019

□ Applicable √ Not applicable

2. Retrospective Restatement of Previous Comparative Data due to the Execution of any New Standards
Governing Financial Instruments or Leases from 2019

□ Applicable √ Not applicable




                                                                                                     35
     Hainan Jingliang Holdings Co., Ltd.                                                  Third Quarter Report 2019


III Independent Auditor’s Report


Indicate by tick mark whether the financial statements above have been audited by an independent auditor.

□Yes √ No

These financial statements have not been audited by such an auditor.




                                                                          Hainan Jingliang Holdings Co., Ltd.

                                                                               19 October 2019




                                                                                                                36

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