京粮B:2019年第三季度报告正文(英文版)

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




Stock Code: 000505, 200505                 Stock Name: JLKG, JL-B   Announcement No.: 2019-072




               HAINAN JINGLIANG HOLDINGS CO., LTD.


            THIRD QUARTER REPORT 2019 (SUMMARY)




                                                                                                  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 s ubsidiaries, the “Company”, except where the context otherwise requires )
hereby guarantee the factuality, accuracy and completeness of the conte nts of this Report and
its summary, and shall be jointly and severally liable fo r any misrepresentations, misleading
statements or mate rial 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 (RM B)

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

Operating revenue (RM B)                    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 (RM B)

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

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

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

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

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

Exceptional gains and losses:

√ Applicable □ Not applicable

                                                                                                                               Unit: RM B

                                    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 Numbe r of Shareholde rs and Holdings of Top 10 Shareholde rs 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 M ANAGEM ENT                                                7.07%        48,510,460          48,510,460
                                               legal person
CENTER

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

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

GOLD           BUFFALO          RUNYING
(TIANJIN) EQUITY INVESTM ENT Other                                        2.20%        15,116,472                      0
FUND           M ANAGEM ENT             CO.,

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


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

                                      Domestic
M EI 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

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

                                                                                             RM B-denominate
CHINA DEVELOPM ENT BANK CAPITAL CO., LTD.                                       20,393,051                           20,393,051
                                                                                             d ordinary stock

                                                                                             Domestically
LI SHERYN ZHAN M ING                                                            17,425,400 listed       foreign      17,425,400
                                                                                             stock

GOLD BUFFALO RUNYING (TIANJIN) EQUITY
INVESTM ENT       FUND      M ANAGEM ENT         CO.,                                        RM B-denominate
                                                                                15,116,472                           15,116,472
LTD.—GOLD      BUFFALO       RUNYING      (TIANJIN)                                         d ordinary stock
EQUITY INVESTM ENT FUND (L.P.)

                                                                                             RM B-denominate
M EI JIANYING                                                                    2,604,203                               2,604,203
                                                                                             d ordinary stock

                                                                                             RM B-denominate
HU TIANGAO                                                                       2,356,052                               2,356,052
                                                                                             d ordinary stock

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

                                                                                             RM B-denominate
WANG XIAOXING                                                                    1,742,700                               1,742,700
                                                                                             d ordinary stock

                                                                                             RM B-denominate
LIN LI                                                                           1,669,600                               1,669,600
                                                                                             d ordinary stock

CHEN OUQIN                                                                       1,652,679 RM B-denominate               1,652,679


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


                                                                                              d ordinary stock

                                                          Beijing State-Owned Capital Operation And M anagement 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
M uqiang, 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 1s t Meeting of the 9 th Board of Directors
M eeting 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 1 st
M eeting of the 9th Board of Directors
and the 1st M eeting of the 9th                                        Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on

Supervisory        Committee         on      26    27 September 2019   Resolutions of the 1 st 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 Commitme nts that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Othe r 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: RM B
                                                     Gain/Lo
                                                                       Accumu
                                                       ss on
                                                                          lated
                                                     fair-valu                   Purchas         Gain/los
                            Initial M easure Beginni      e
                                                                       fair-valu
                                                                                  ed in
                                                                                         Sold in
                                                                                                   s in   Ending Account Funding
Security Security Security                     ng                            e           Reporti
                           investm ment carrying changes                         Reporti         Reporti carrying
  type     code    name                                                 changes            ng
                                    method               in                        ng               ng    amount ing title source
                           ent cost          amount Reporti             charged Period 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 Manage ment Entrustment

√ Applicable □ Not applicable

                                                                                                        Unit: RM B’0,000 (in RM B 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 s ignificant, or with low security,

low liquidity, or no protection of the principal:

√ Applicable □ Not applicable

                                                                                                        Unit: RM B’0,000 (in RM B 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: RM B’0,000 (in RM B 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 M arch 2019
derivative investment (if any)

Disclosure date of general 9 M arch 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. M atching
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)

M ajor 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, Intervie w, etc.
during Reporting Pe riod


□ 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 Shareholde r or Its Related Parties
for Non-Operating Purposes


□ Applicable √ Not applicable

No such cases in the Reporting Period.




                                                                 Hainan Jingliang Holdings Co., Ltd.

                                                                      19 October 2019




                                                                                                    13

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