2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
Stock Code: 000869. 200869 Stock Abbreviation: Changyu A, Changyu B Notice No.: 2019-Final 02
Yantai Changyu Pioneer Wine Co., Ltd.
2019 the First Quarter Report Main Body
I. Important Notice
The Company’s board of directors, board of supervisors, directors, supervisors and senior
executives guarantee the truthfulness, accuracy and completeness of contents contained in this
quarter report as well as no unfaithful facts, misleading statements or significant omissions
and undertake individual and collective legal liabilities.
All directors attended the board meeting for deliberating this quarter report.
Mr. Zhou Hongjiang (person in charge of the Company) and Mr. Jiang Jianxun (person in
charge of accounting work, person in charge of accounting organization and person in charge
of accounting) declare to assure the truthfulness, accuracy and completeness of the financial
statement in this quarter report.
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2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
II、Corporate Information
1. Key accounting data and financial indicators
Whether the Company need to make retroactive adjustments or restate the accounting data of
previous fiscal years.
□ Yes √ No
More or less than the
The same period of
Item This report period same period of last year
last year
(%)
Operating revenue (CNY) 1,667,424,758 1,804,057,976 -7.57%
Net profit attributed to the
shareholders of the listed 456,381,471 479,444,238 -4.81%
company (CNY)
Net profit attributed to the
shareholders of the listed
450,709,661 466,181,564 -3.32%
company after deducting the
irregular profit and loss (CNY)
Net cash flows from the
294,678,342 507,263,964 -41.91%
operating activities (CNY)
Basic earnings per share
0.67 0.70 -4.29%
(CNY)
Diluted earnings per share
0.67 0.70 -4.29%
(CNY)
Weighted average for earning
4.75% 5.24% -0.49%
rate of the net assets
The end of this More or less than the end
The end of last year
report period of last year (%)
Total assets (CNY) 13,317,351,339 13,117,729,052 1.52%
Net Assets attributed to the
shareholders of the listed 10,055,194,755 9,606,099,365 4.68%
company (CNY)
Details of irregular profit and loss
V Yes □ No
Unit：CNY
From beginning of year
Item Explanation
to end of report period
Gain on disposal of non-current assets, including
1,138
the reversal of accrued impairment provision
Government grants credited in profit and loss
(except for those recurring government grants
that are closely related to the entity's operation, 6,172,178
in line with related regulations and have proper
basis of calculation)
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2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
Other non-operating income and expenses 1,259,563
Less: Income tax effect 1,741,770
Minority interests effect(after-tax) 19,299
Total 5,671,810 --
The reasons shall be made clear and definitely as to the non-recurring profit and loss that the
Company has defined by virtue of the Explanatory Announcement on Public Company’s
Information Disclosure No.1 - Non-recurring Profit and Loss and as to regarding the non-recurring
profit and loss as recurrent profit and loss as specified in the Explanatory Announcement on Public
Company’s Information Disclosure No.1 –Non-recurring Profit and Loss.
□Available Not available
There is no situation that non-recurring profit and loss is defined and specified as recurrent profit
and loss in accordance with the Explanatory Announcement on Public Company’s Information
Disclosure No.1 - Non-recurring Profit and Loss during the report period.
2. The total number of shareholders and top 10 shareholders at the end of the report period
1) The number of the common shareholders and preferred shareholders with recovered voting
power as well as the shareholding of top 10 shareholders
Unit: share
Total number of preferred 0
Total number of common shareholders 45,104 shareholders with recovered
at the end of report period voting power at the end of re
port period
Shareholding of top 10 shareholders
Number Pledged or
Character of Percentage of frozen
Name of Shareholders Shares held
shareholders (%) restricted Share
Amount
shares status
Domestic non-
YANTAI CHANGYU GROUP
state-owned 50.40% 345,473,856 0 0
COMPANY LIMITED
legal person
Foreign legal
GAOLING FUND,L.P. 3.08% 21,090,219 0 0
person
CHINA SECURITIES FINANCE State-owned
2.25% 15,440,794 0
CORP legal person
BBH BOS S/A FIDELITY FD - Foreign legal
2.22% 15,241,826 0 0
CHINA FOCUS FD person
SHENWAN HONGYUAN Foreign legal
SECURITIES(HONGKONG) person 1.24% 8,492,763 0 0
LIMITED
FIDELITY PURITAN TRUST: Foreign legal
FIDELITY SERIES INTRINSIC person 0.93% 6,350,762 0 0
OPPORTUNITIES FUND
GUOTAI JUNAN Foreign legal
SECURITIES(HONGKONG) person 0.80% 5,516,796 0 0
LIMITED
CENTRAL HUIJIN ASSET State-owned
0.69% 4,761,200 0 0
MANAGEMENT LTD. legal person
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2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
VANGUARD EMERGING Foreign legal
MARKETS STOCK INDEX person 0.55% 3,788,487 0 0
FUND
FIDELITY CHINA SPECIAL Foreign legal
0.55% 3,779,202 0 0
SITUATIONS PLC person
Shareholding of top 10 shareholders with unrestricted shares
Name of Shareholders Number of Type of share
unrestricted Type of Amount
shares held share
YANTAI CHANGYU GROUP COMPANY LIMITED 345,473,856 A share 345,473,856
GAOLING FUND,L.P. 21,090,219 B share 21,090,219
CHINA SECURITIES FINANCE CORP 15,440,794 A share 15,440,794
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 15,241,826 B share 15,241,826
SHENWAN HONGYUAN SECURITIES(HONGKONG) B share
8,492,763 8,492,763
LIMITED
FIDELITY PURITAN TRUST: FIDELITY SERIES B share
6,350,762 6,350,762
INTRINSIC OPPORTUNITIES FUND
GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED 5,516,796 B share 5,516,796
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 4,761,200 A share 4,761,200
VANGUARD EMERGING MARKETS STOCK INDEX B share
3,788,487 3,788,487
FUND
FIDELITY CHINA SPECIAL SITUATIONS PLC 3,779,202 B share 3,779,202
Among the top 10 shareholders, Yantai Changyu Group Company
The explanation for the associated
Limited has no associated relationship or accordant action
relationship and accordant action of
relationship with the other 9 listed shareholders, and the
the top 10 shareholders
relationship among the other shareholders is unknown.
Explanation for the top 10 common
shareholders who involved in
No
financing activities and stock trading
business(if any)
Whether or not the Company’s top 10 common shareholders and top 10 common shareholders with
unrestricted shares promise to buy back trading during the report period
□ Yes √ No
There are no top 10 common shareholders and top 10 common shareholders with unrestricted shares
in the Company promise to buy back trading during the report period.
2) The total number of the preferred shareholders and top 10 preferred shareholders at the end of
the report period
□Available √Not available
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2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
III Major Issue
1. Situation and reason of change in major financial data and financial index during the
report period
√Available □Not available
Compared the end of the report period with the beginning of the report period: Monetary fund
increased by 14.28%, mainly due to the reduce in cash outflow for investment activities and
increase in bank deposit. Notes receivable increased by 64.09%, mainly due to increased amount of
bank acceptances. Advance payment decreased by 55.58%, mainly due to the decrease in advance
payment for raw material procurement. Interest receivable increased by 39.65%, mainly due to the
increased interest of bank term deposits. Non-current liabilities due within one year increased by
21.39%, mainly due to the transfer of long-term account payable.
Compared with the same period of last year: operating revenue decreased by 7.57%, which was
caused by four reasons. Firstly, in order to implement the strategy of “Focus on high quality, Focus
on mid-to-high end and Focus on big product”, the prices of low-end wines were raised at the end
of November 2018. Due to the pressure-bearing process of the market, the low-end wines have
fallen sharply. Secondly, due to aging of products as well as relatively concentrated markets, the
low-end brandy has shown a downward trend since last year. However, the growth of mid-to-high-
end brandy is not enough to make up for the decline of low-end brandy. Thirdly, the sales policy of
imported wines has further focused on the acquisition brands including Kilikanoon and Indomita etc,
which results in a decline in non-acquisition brands in imported wines and drags down the overall
growth of imported wines. Fourthly, listed company adjusted about 20% of provincial managers
and marketing personnel in February, which also had a certain impact on current indicators.
Compared with the same period of last year: sales expense decreased by 14.9%, mainly due to
decrease in advertising expense. Financial expense decreased by 156.04%, mainly due to offset of
financial expense by received loan with discounted interest. Net profit attributable to parent
company decreased by 4.81%, mainly due to decrease in income. Net cash flow from operating
activities decreased by 41.91%, mainly due to reduce in received cash of selling products and
providing service. Cash inflow from investment activities increased by 9064.93%, mainly due to
increase in withdrawal of fixed term deposit. Cash outflow for investment activities decreased by
73.86% and net cash flow from investment activities increased by 79.14%, mainly due to the reduce
in the cash paid for purchasing fixed term deposit. Net increase in cash and cash equivalents
increased by 24149.03%, mainly due to reduce in cash outflow for investment activities.
2. Analysis explanation of major issue’s process, influence and solution
□Available √ Not available
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2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
Implementation progress of share repurchase
□Available √ Not available
Implementation progress of reducing or repurchasing shares by the way of centralized bidding
□Available √ Not available
3. The commitments that the Company’s actual controllers, shareholders, related parties,
purchasers, the Company and other related parties do not implement completely
exceeding the time limit within report period
√Available □Not available
Commitment Commitment Commitment Commitment Commitment
Commitments Implementation
Party Type content time period
Commitments at
- －
share reform
Commitments
made in
acquisition - - - -
report or equity
changes report
Commitments at
asset - - - -
restructuring
Yantai
Changyu Solve Has been
Non-horizontal
Group Co., horizontal 1997.05.18 Permanent fulfilling the
competition
Ltd. competition commitment
According to According to
Trademark Trademark
License License
Contract, the Contract, the
annual annual
trademark use trademark use
Commitments at fee of fee charged by
the initial public trademarks Yantai Changyu
offering or Yantai
Define the including “ 张 Group Co., Ltd.
refinancing Changyu should be
use of 裕 ” (Changyu)
Group Co., 1997.05.18 Permanent mainly used to
trademark use paid by the
Ltd. publicize
fee Company to
Yantai Changyu trademarks
Group Co., Ltd. including “ 张
should be 裕 ” (Changyu)
mainly used by and contractual
Yantai Changyu products. Except
Group Co., Ltd. the period from
to publicize 2013 to 2017
trademarks when Yantai
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2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
including “ 张 Changyu Group
裕 ” (Changyu) Co., Ltd. didn’t
and contractual strictly fulfill the
products. commitment,
Yantai Changyu
Group Co., Ltd.
has been
fulfilling the
commitment.
Equity incentive
commitments
Commitments
made to the
minority - - - -
shareholders of
the Company
Commitment
under timely
No
implementation
or not
According to Trademark License Contract (hereafter referred to as “this
Contract”), Changyu Group promised that the annual trademark use fee paid
by the Company to Changyu Group would be mainly used by Changyu Group
to publicize these trademarks and contractual products. However, the above-
mentioned "mainly" is not a specific number. During the implementation
process, due to inconsistent understanding, it is easy to cause divergence and
leads to problems.
Changyu Group totally charged trademark use fee of CNY420,883,902 from
2013 to 2017. Based on this Contract, the amount (51% of trademark use fee)
used for publicity of trademarks including “张裕” (Changyu) and contractual
products involved in this Contract should be CNY214,650,790, compared to
which, the amount that has already been used for publicity of trademarks
For commitments that exceed including “张裕” (Changyu) and contractual products involved in this
the time limit and are not Contract is CNY50,025,181 with a balance of CNY164,625,609. In addition,
completed, specific reasons of
Changyu Group totally charged 2017 annual and 2018 annual trademark use
not completing the
fee of CNY155,623,907 in 2018 and 2019. Based on This Contract, the
implementation and the next
amount (51% of trademark use fee) used for publicity of trademarks including
step
“张裕” (Changyu) and contractual products involved in this Contract should
be CNY79,368,193, compared to which, the amount that has already been
used for publicity of trademarks including “张裕” (Changyu) and contractual
products involved in This Contract is CNY12,225,187 with a balance of
CNY67,143,006.
From 2013 to now, the total balance of trademark use fee used for publicity of
trademarks including “张裕” (Changyu) and contractual products involved in
this Contract is CNY231,768,615.
Changyu Group promised that Changyu Group would use the trademark use
fee that would be charged for 2019 annual to 2022 annual to offset above-
mentioned total balance. If it is not enough, the insufficient amount will be
complemented for one time in 2023; if it is sufficient, Changyu Group will
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2019 the First Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd.
begin to charge the excess trademark use fee from the year when there
generates excess trademark use fee.
If Changyu Group is not able to implement the above-mentioned commitment owing
to various reasons, the Company will timely supervise and urge Changyu Group to
fulfill its commitment and request Changyu Group to raise funds through bank
loaning, assets sales and equity sales etc in order to implement the commitment.
For detailed information, please refer to the Company’s Announcement of
Commitment Issues of Yantai Changyu Group Co., Ltd disclosed on April 4th, 2019.
4. Forecast on the operating performance in the period from January to June of 2019
Warning and explanation for the estimation on the possible loss of cumulative net profit in the
period from the beginning of this year to the end of the next report period or the great change
comparing with same period of last year.
□Available √ Not available
5. Situation of security investment
□Available √ Not available
There is no security investment during the report period.
6. Situation of derivative investment
□Available √ Not available
There is no derivative investment during the report period.
7. The activities registration form of receptions, communication and interview etc. during the
report period
□Available √ Not available
There are no activities of receptions, communication and interview etc. during the report period.
8. Situation of illegal external guarantee
□Available √ Not available
There is no illegal external guarantee during the report period.
9. Situation of non-operating fund occupation of controlling shareholders and related parties
□Available √ Not available
There is no non-operating fund occupation of controlling shareholders and related parties during the
report period.
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
April 27th 2019
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