Semiannual Report 2009
August 2009安徽古井贡酒股份有限公司2009 年半年度报告
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Important Notices
. The Board of Directors, Board of Supervisors and directors, supervisors, and senior managers
of the company ensure that there is neither untrue presentation, seriously misleading statements,
nor omission of material facts contained in the information herein and shall severally and jointly
bear responsibility for the authenticity, accuracy and completeness of the information contained
in this report.
. Mr. Cao Jie, the principal of the Company, Mr. Ye Changqing, the principal in charge of
accounting, and Ms. Xia Xueyun, the principal of the accounting department (chief accountant),
hereby declare that: We guarantee the authenticity and completeness of the financial statements
in the semiannual report.
. The financial statements in the Company’s interim report have not yet been audited.
. The report has been prepared in Chinese and English respectively. In case of discrepancy, the
Chinese version shall prevail.安徽古井贡酒股份有限公司2009 年半年度报告
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Contents
Chapter I Basic Information of the Company.................................................................................... 4
Chapter II Details of Changes in Share Capital and Major Shareholders........................................6
Chapter III Particulars about Directors, Supervisors and Senior Executives of the Company....... 9
Chapter IV Report of the Board of Directors...................................................................................... 10
Chapter V Substantial Events................................................................................................................14
Chapter VI Financial Report.............................................................................................................18
Chapter VII Documents for Further Reference.................................................................................. 90安徽古井贡酒股份有限公司2009 年半年度报告
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Chapter I Basic Information of the Company
I. Basic Information
1. Statutory name of the Company:
In Chinese: 安徽古井贡酒股份有限公司
In English: ANHUI GUJING DISTILLERY COMPANY LIMITED
Abbreviation: GUJING
2. Legal representative: Cao Jie
3. Secretary of Board of Directors: Ye Changqing
Contact address: Gujing, Bozhou, Anhui
Tel: (0558) 5712231
Fax: (0558) 5317706
E-mail: ycq@gujing.com.cn
Authorized representative for securities: Ma Junwei
Contact address: Gujing, Bozhou, Anhui
Tel: (0558) 5317057
Fax: (0558) 5317706
E-mail: gjzqb@gujing.com.cn
4. Registered address: Gujing, Bozhou, Anhui
Office address: Gujing, Bozhou, Anhui
Post code: 236820
Website: http://www.gujing.com
E-mail: gujing@mail.ahbbptt.com.cn
5. Selected newspapers for information disclosure are as follows: China Securities Daily, Shanghai
Securities Daily, Hong Kong Wen Wei Po Daily
Website for publishing Annual Report of the Company: http://www.cninfo.com.cn
Place of the Annual Report filed: Office of Secretary of BOD of the Company
6. Place where the company shares are listed: Shenzhen Stock Exchange
Short form of Stock Name: Gujing Distillery Stock Code: 000596
Short form of Stock Name: Gujing Distillery B Stock Code: 200596
7. Other information:
1). Initial registration date of the Company: May 30, 1996
Registration authority: Anhui Provincial Administration for Industry and Commerce
2). Registration number of business license: QGWZZ No. 001745安徽古井贡酒股份有限公司2009 年半年度报告
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Tax registration number: 341600151940008.
3). Names and addresses of accountants’ offices appointed by the Company
Domestic: BDO Reanda Certified Public Accountants
Address: Room 2008, East Wing, Building 1, Zhubang 2000 Tower, No. 100, Balizhuang Xili,
Chaoyang District, Beijing, PRC
II. Main financial data and index
1. Main accounting data and financial index
Unit: (RMB) Yuan
2. Non-recurring profit and loss deducted
Unit: (RMB) yuan
End of reporting
period
End of previous
year Increase/decrease (%)
Total assets 1,248,554,831.97 1,728,922,645.40 -27.78%
Owners’ equity attributed to shareholders of
the listed company
690,757,316.
24 920,268,326.45 -24.94%
Equity 235,000,000.00 235,000,000.00 0.00%
Net assets per share attributed to
shareholders of the listed company 2.94 3.92 -25.00%
Reporting period
(Jan. to Jun.) Year-on-year Increase/decrease (%)
Operating total income 705,277,294.05 683,587,478.41 3.17%
Operating profit 48,879,266.61 24,864,116.63 96.59%
Total profit 51,526,673.76 28,976,949.84 77.82%
Net profit attributed to shareholders of the
listed company 35,609,194.93 18,248,989.36 95.13%
Net profit after deducting non-recurring
profit and loss attributed to shareholders of
the listed company
32,961,787.78 14,148,824.90 132.96%
Earnings per share 0.15 0.08 87.50%
Diluted earnings per share 0.15 0.08 87.50%
Net asset earning ratio 5.16% 3.81% 1.35%
Net cash flows from operating activities 151,980,449.10 35,082,826.46 333.20%
Net cash flows from operating activities per
share 0.65 0.15 333.33%
Non-recurring profit and loss Amount Note (if applicable)
Non-operating revenue 3,075,857.57
L ess：Non-operating expenses 428,450.42
Total 2,647,407.15 -安徽古井贡酒股份有限公司2009 年半年度报告
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Chapter II Details of Changes in Share Capital and Major
Shareholders
I． No changes in reporting period (until June 30, 2009)
II. Details of Restricted Shares
(1) Release date for listing and trading of restricted shares
Unit: shares
(2) Number of shares held by top 10 restricted shares shareholders and the restrictions
Unit: shares
III. Details of Shareholders
(1) Number of shareholders and shares held
Date
Additional shares
that can be listed
and traded upon the
expiry of restricted
period
Remaining restricted
shares
Remaining nonrestricted
shares Note
2009-06-19 123,500,000 2,100 234,979,000
Shares held by the controlling
shareholders should not be
listed for trade or transferred
within 12 months after being
granted the circulation right.
Upon the expiry of the period,
the number of shares sold within
12 month should not exceed 5%
of the total shares of the
Company, and not exceed 10%
within 24 months.
Name of restricted shares
shareholders
Number of
restricted shares
held
Date
permitted to
be listed and
traded in the
market
Number of shares
permitted to be
listed and traded in
the market
Restrictions
Anhui Gujing Group Co., Ltd. 123,500,000 2009-06-19 123,500,000
Shares held by the
controlling shareholders
should not be listed for
trade or transferred within
12 months after being
granted the circulation
right. Upon the expiry of
the period, the number of
shares sold within 12
month should not exceed
5% of the total shares of
the Company, and not
exceed 10% within 24
months.
Total number of
shareholders 26,987
Shareholdings of top 10 shareholders
Name of shareholders Type of
shareholders
Percentage of
shares held
Total number
of shares held
Number of
restricted shares
Number of shares
pledged or frozen安徽古井贡酒股份有限公司2009 年半年度报告
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held
Anhui Gujing Group Co.,
Ltd.
State-owned
shareholder legal
person
61.15% 143,702,011 123,500,000 57,000,000
GUOTAI JUNAN
SECURITIES(HONGKO
NG) LIMITED
Foreign legal
person 2.12% 4,977,350 0 0
UBS (LUXEMBOURG)
S.A.
Foreign legal
person 1.26% 2,961,827 0 0
B0CI SECURITIES
LIMITED
Foreign legal
person 1.15% 2,714,055 0 0
Agricultural Bank of
China–Soochow Value
Growth Double Power
Stock Fund
Domestic nonstate-
owned legal
person
1.11% 2,619,286 0 0
DRAGON BILLION
CHINA MASTER FUND
Foreign legal
person 0.87% 2,041,947 0 0
China Merchants
Securities (HK) Co., Ltd.
Foreign legal
person 0.44% 1,031,500 0 0
GAM ASIA EQUITY
HEDGE INVESTMENTS
INC
Foreign legal
person 0.41% 953,103 0 0
Chen Bo Foreign natural
person 0.39% 922,691 0 0
Lin Qiaochai Foreign natural
person 0.39% 909,261 0 0
Shareholdings of the top ten non-restricted shares shareholders
Name of shareholders Number of non-restricted shares
held Type of shares
Anhui Gujing Group Co., Ltd. 20,202,011 RMB–denominated common
share
GUOTAI JUNAN
SECURITIES(HONGKONG) LIMITED 4,977,350 Domestic listed foreign-oriented
shares
UBS (LUXEMBOURG) S.A. 2,961,827 Domestic listed foreign-oriented
shares
B0CI SECURITIES LIMITED 2,714,055 Domestic listed foreign-oriented
shares
Agricultural Bank of China–Soochow Value
Growth Double Power Stock Fund 2,619,286 RMB–denominated common
share
DRAGON BILLION CHINA MASTER
FUND 2,041,947 Domestic listed foreign-oriented
shares
China Merchants Securities (HK) Co., Ltd. 1,031,500 Domestic listed foreign-oriented
shares
GAM ASIA EQUITY HEDGE
INVESTMENTS INC 953,103 Domestic listed foreign-oriented
shares
Chen Bo 922,691 Domestic listed foreign-oriented
shares
Lin Qiaochai 909,261 Domestic listed foreign-oriented
shares
Description of the
connected relationship or
acting in concert
relationship among the
aforesaid shareholders
Among the foresaid shareholders, the state-owned shareholder – Anhui Gujing Group
Company Limited has no associated relations with the other shareholders, and is not
concluded in the group as a person specified in the Measures for the Administration of
Disclosure of Shareholder Equity Changes of Listed Companies. Among the float
shareholders, the associated relations and whether they are included in the group as a
person specified in the Measures for the Administration of Disclosure of Shareholder
Equity Changes of Listed Companies or not are not available.安徽古井贡酒股份有限公司2009 年半年度报告
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(2) The shareholder holding over 5% shares—Anhui Gujing Group Co., Ltd. holds 143,702,011
shares at the end of the reporting year, including 123,500,000 restricted circulating shares, and 20,202,011
non-restricted circulating shares. Shares it held are state-owned legal person shares, 5,700,000 shares of
which are frozen for loan on 16th March 2009, and not pledged, or consigned.
(3) Anhui Gujing Group Co., Ltd. is the shareholder that represents the state.Chapter III Particulars about Directors, Supervisors and Senior
Executives of the Company
I．Changes in shares held by directors, supervisors and senior executives of the Company
There is no change in shares held by directors, supervisors and senior executives of the Company
during the reporting period.
II. Changes in directors, supervisors and senior executives of the Company during the reporting
period:
The proposal for resignation of secretary of the Board has been approved at the 8th meeting of the 5th
Board of Directors of the Company held on 8th Jan. 2009. Mr. Libin has resigned from his post of secretary
of the Board and assistant to General Manager; according to the decision of the Board, director Mr. Ye
Changqing is assigned to the execution of responsibilities of secretary of the Board.
The proposal for reelection of chairman has been approved at the 10th meeting of the 5th Board of
Directors of the Company held on 27th March 2009. Mr. Wang Feng applies for the resignation of chairman
for work demands. According to recommendation of the controlling shareholders, the Board of Directors
nominates Mr. Cao Jie as the chairman of the Company as per the approval of the commission.
The proposal for engagement of Mr. Ye Changqing as the secretary of the Board has been approved at
the 13th meeting of the 5th Board of Directors of the Company held on 24th June 2009. The deliberation of
the company approves the proposal of alteration of the Board of Directors of the Company. Mr. Libin
applies to the Board of Directors for the resignation of director for work demands. The Board of Directors
approves his resignation after discussion. Considering the work demands, the Company nominates Mr.
Zhou Qingwu as the director of the Company. The decision of the Board of Directors approves the
resignation of Mr. Fang Ji and Mr. Zhai Liangdong from the posts of assistant to General Manager.
The proposal for director of Board of Directors has been changed at the 1st temporary general meeting
of shareholders of 2009 held on 10th July 2009. The Company consents to the resignation of Mr. Li Bin,
and elects Mr. Zhou Qingwu as the by-elected director of the 5th Board of Directors.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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Chapter IV Report of the Board of Directors
I. Discussion and analysis from management
2009 is a “marketing and transformation” year of the Company. Under the direction scientific development
view, insisting on the strategy of “returning and revitalization”, adhering to the policy of “marketing and
transformation”, through half-year struggling, the Company achieves a breakthrough progress on the optimization
and integration of organization structure, reasonable allocation of market resources, and optimization of product
structure. Under the circumstance of hard external economic environment, the distilled spirit business obtains
excellent performance. The effectiveness of structural adjustment further emerges, and has powerful increasing
tendency. The brand image of the Company has greatly recovered and been promoted. In the list of 2009 top 500
China's most valuable brands published in June, Gujinggong Spirit ranks 175 by the value of RMB 4.66 billion.
This is the sixth appearance of Gujinggong Spirit on the list.
II. Operating results of the Company during the reporting period
(I) Overview of operations
In the first half year, The Company achieved the operating revenue of RMB705.2773 million, an increase of
3.17% year-on-year, and the operating profit of RMB 48.8793 million, an increase of 96.59% year-on-year. The net
profit was RMB 35.5542 million , in the reporting period, an increase of94.96% compared with last year.
(II) Composition of main operations
1. Primary scope of business
The Company mainly undertakes the production and sales of Gujinggong, Gujing and its serial distilled spirits
which can be classified into the strong, faint aromatic and mixed-flavor types, with the alcohol content ranging
from 60 degree to 30 degree, and the prices ranging from high, medium and low levels. The main products include
light Gujinggong spirits, Gujinggong vintage original spirit, elegant Gujinggong spirit, Hongyun Gujinggong spirit,
Golden Gujinggong spirit, and light Gujing spirit.
2. Main operations classified by products and industry
Unit: (RMB) ten thousand yuan
Main operations by industry
By industry or
products
Revenue from
operations
Operating
costs
Gross
margin
(%)
Increase/decrea
se in revenue
from operations
over the
previous year
(%)
Increase/decrea
se in operating
costs over the
previous year
(%)
Increase/decrea
se in gross
margin over the
previous year
(%)
Spirits 55,928.34 23,997.03 57.09% 39.66% 13.63% 9.83%
Deep processing of
agricultural products 2,113.60 2,085.69 1.32% -88.60% -87.09% -11.54%安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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Including: the total amount of the interested transaction on product selling and labor offering by the listed company
to its shareholders and sub-companies in the reporting period is RMB1240.26 yuan.
3. Main operations classified by regions
Unit: (RMB) ten thousand yuan
(III) Financial analysis Unit: RMB yuan
Causes of increase/decrease in partial financial indexes:
(1) Notes receivable decreased by 29.43%, which is attributed to endorse the transfer of payments due to the
procurement;
(2) Advances to suppliers decreased by 42.87%, which is attributed to invoicing due;
(3) Other receivables decreased by 75.46%, which is attributed to recover the money;
(4) Inventory decreased by 23.22%, which is attributed to reduce procurement, inventory
turnover and accelerated;
Others 10,020.61 5,893.62 41.19% 13.68% 4.57% 5.12%
Total 68,062.55 31,976.34 53.02% 0.98% -25.48% 16.68%
Main operations by products
High-class spirit 21,857.16 6,142.56 71.90% -14.84% -41.93% 13.11%
Medium-class spirit 29,943.97 15,194.50 49.26% 141.97% 76.31% 18.90%
Low-class spirit 4,127.21 2,659.97 35.55% 105.85% 38.40% 31.41%
Total 55,928.34 23,997.03 57.09% 39.66% 13.63% 9.83%
Region Revenue from operations
Increase/decrease in revenue
from operations over the
previous year (%)
North China 3,555.14 -60.76%
Central China 57,800.35 25.72%
South China 6,440.41 -30.52%
Other districts 266.65 -91.39%
68,062.55 0.98%
Items 30th June, 2009 31st Dec, 2008
Rate of
increase/decrease
(%)
Notes receivable 77,887,523.86 110,369,921.69 -29.43%
Advances to suppliers 4,901,333.10 8,578,537.17 -42.87%
Other receivables 3,347,208.94 13,641,424.00 -75.46%
Inventory 362,487,609.92
362,487,609.92
362,487,609.92
362,487,609.92
362,487,609.92
472,111,360.97 -23.22%
Construction in progress 4,811,158.40 75,221,939.28 -93.60%
Construction materials 115,261.62 1,294,344.98 -91.09%
Intangible assets 93,165,926.78 136,102,321.09 -31.55%
Short-term loans 10,000,000.00 75,000,000.00 -86.67%
Long-term borrowings 66,000,000.00 151,000,000.00 -56.29%
Capital surplus 307,729,034.12 572,849,239.26 -46.28%安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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(5) Construction in progress decreased by 93.60%, which is attributed to the influence of assets replacement;
(6) Construction materials decreased by 91.09%, which is attributed to the influence of assets replacement;
(7)Intangible assets decreased by 31.55%, which is attributed to the influence of assets replacement;
(8) Short-term loans decreased by 86.67%, which is attributed to the repayment of mature short-term loans;
(9) Long-term loans decreased by 56.29%, which is attributed to the repayment of mature long-term loans;
(10) Capital surplus decreased by 46.28%, which is attributed to the influence of assets replacement. Adjust
the capital surplus according to the balance between the book value of net assets consolidated under the same
control and the paid book value of consolidation (or the total par value of the shares issued).
(IV) There are no other operating activities that have exerted material effect on the revenue
during the reporting period.
(V) There is no investment from single joint stock company of which the income accounts for
over (including) 10 % of the Company’s net profit during the reporting period.
(VI) Existing problems and difficulties, their solutions and plan of the second half of year:
1. Existing problems and difficulties
1) The development of the market is not balanced. Product structure still has room to be improved;
2) As the increase of the price of the raw materials, the cost of us is also rising.
2. Solutions
Optimize and adjust product structure, customer structure and market structure; greatly reduce product line
and unify product price
Establish marketing management system based on service and supervision. Release the power at the frontline
of market and enhance supervision. Establish a perfect internal control system.
Purchase material with best performance price ratio; purchase at the right time and right price; keep
reasonable inventories and reduce purchase cost. Optimize production structure, complete producing technology,
reduce producing cost and improve productivity.
3. Plan of the second half of year
2009 is not only the critical year for the economic and social development of China, but also the critical year
for the “returning and revitalization” of Gujing. Although the company achieves a certain success in the first half of
year, the entire macroeconomic situation is still severe, and the Company still faces many challenges and
difficulties! In order to accelerate the completion of targets in the year “marketing and transformation”, the
Company arouses the enthusiasm of the staff and strives to overfulfil each planned target in 2009.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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The plan of the second half of year starts from the following aspects:
I. Continuously cooperate with the municipal government, promote the reformation of Gujing, and implement
the 2009-2011 three-year strategy of the group.
II. Further promote the marketing, accelerate the layout of key markets, thoroughly implement the “three
direct links of roads, stores and personnel”, and further develop the key markets.
III. Deepen the adjustment of product structure, and enhance the quality management. Strive to simplify the
variety of products before the end of 2009. Ensure the product quality, strengthen the procedure of quality
management, and establish the management concept of “quality problems prevailing”.
IV. Strengthen and refining the management, strictly control the expenditure, and further promote the
operation efficiency and comprehensive operation capability of the enterprise.
V. Improve and perfect the performance appraisal system, boost the reformation of three systems, promote the
organizing ability of the enterprise, and arouse the enthusiasm of the staff.
VI. Continuously improve the living and working environment of employees, provide warm humanistic care
to employees, and create a united, cooperative, trustful, and shared atmosphere.
III. Investments during the reporting period
(I) Investments through fundraising
There is no investment through fundraising during the reporting period.
(I) Investments with non-raised funds
There is no material investment with non-raised funds during the reporting period.
IV. During the reporting period, there is no difference between the actual operating results and
the profit forecast and expectations disclosed in the periodical report of the previous period.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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Chapter V Substantial Events
I. Corporate governance
In the reporting period, the Company legally operates pursuant to Company Law, Securities Law, Code of
Corporate Governance for Listed Companies in China, Opinions on Improving the Quality of Listed Companies,
Administrative Measures on Information Disclosure by Listed Companies, Shenzhen Stock Exchange Market
Stock Listing Rules and other laws and regulations. The actual situation of the corporate legal person governance
structure complies with provisions of normative documents about governance for listed companies issued by
China Securities Regulatory Commission. During the reporting period, the strategy and investment regulatory
committee of BOD, remuneration and appraisal committee, nomination committee, and audit committee have
already held the relevant works according to the implementation details of relevant special committees.
According to Notice on Carrying out Activity to Further Promote Corporate Governance, the Company
promptly checks the funds with interested parties, and submits the “Statistics on Funds of the Listed Companies
and Interested Parties” to Anhui Securities Regulatory Bureau as per the regulatory requirements, so as to avoid
dominant shareholders' occupying funds of listed company. Till the end of the reporting period, there are no funds
occupied by dominant shareholders and other interested parties and no violation of Notice on Normalizing Fund
and Warrant of the Listed Companies and Interested Parties issued by China Securities Regulatory Commission.
Funds between the Company and its dominant shareholders and the interested parties are from the daily operative
related transactions which follow the principle of openness, fairness, and justice of the market. The transaction
price is on the basis of market fair price, which effectively ensure the openness and fairness of related transactions
and fairness of price of related transactions.
According to the requirements of Basic Standard for Enterprise Internal Control, Guidance of Internal
Control of Listed Companies of Shenzhen Stock Exchange, the Company is revising and adding the relevant
internal controlling system and continuously supplementing and perfecting the corporate legal person governance
structure, so as to establish a more effective restrictive relation among right institution, decision institution,
supervision institution, and administration institution, and ensure the continuous improvement of operation of the
Company.
II. Plans for profit distribution and transfer of surplus to capital and their implementations
According to the resolution of the 2008 annual shareholders’ meeting, the Company made no profit
distribution or transfer of surplus to share capital during the reporting period.
The Company would not make profit distribution or transfer of surplus to capital in the first half year of 2009.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
15
III. Major litigations and arbitrations
There is no major litigation or arbitration during the reporting period.
IV. Stock equity of other listed companies
The Company is not holding any stock equities of other listed companies.
V. Major assets acquisition, sale and restructuring
(I) Progress of assets replacement
The 9th meeting of the 5th Board of Directors has approved the proposal for replacement between 100% equity
of Anhui Ruifuxiang Food Co., Ltd. held by the Company and 100% equity of Shanghai Gujing Jinhao Hotel
Management Co., Ltd. (Previous Shanghai Gujing Jinhao Real Estate Development Co., Ltd.) held by Anhui
Gujing Group Co., Ltd. (hereinafter refer to as “Gujing Group”) (hereinafter refer to as “related transaction”). The
related transaction has been deliberated and approved by the 2008 annual shareholders meeting. On 14th May 2009,
Shanghai Gujing Jinhao Hotel Management Co., Ltd. completed the industrial and commercial registration and
record about shareholders alteration, 100% equity of which was held by the company. On 15th May 2009, Anhui
Ruifuxiang Food Co., Ltd. completed the industrial and commercial registration and record about shareholders
alteration, 100% equity of which was held by Gujing Group.
(II) Reformation for property rights system of controlling shareholders
On 20th May 2009, according to the notice of state-owned assets supervision and administration commission
of Bozhou People’s Government (hereinafter refer to as “Bozhou state-owned assets commission”), 40% equity of
Gujing Group will be transferred in Hefei Property Trading Center on 21st May 2009. The listed price of transfer
subject matter is RMB 465 million. According to the Report of Assets Appraisal of Reform Project of Anhui
Gujing Group Co., Ltd. (JDPBZ (2008) No. 092), till the valuation date of 31st Aug. 2009, the appraisal value of
total assets of Gujing Group is RMB 1. 9344504 billion, the total liability of which is RMB 775.7634 million, and
the net assets of which is RMB 1.1586870. The foresaid appraisal projects of state-owned assets have been
approved by Bozhou state-owned assets commission.
On 22nd June 2009, after the review of Assignment Document Review Group composed by Bozhou stateowned
assets commission and Hefei Property Trading Center, Shanghai Puchuang Equity Investment Co., Ltd. is
determined as the intended assignee of listed transfer of 40% state-owned assets of Gujing Group. On 30th July
2007, Bozhou state-owned assets commission and Shanghai Puchuang Equity Investment Co., Ltd. signed the
Contract for Transfer of 40% Equity of Anhui Gujing Group Co., Ltd. in Bozhou Anhui, which stated that 40%
Equity of controlling shareholder – Anhui Gujing Group Co., Ltd. was transferred to Shanghai Puchuang Equity
Investment Co., Ltd. The Transfer Contract came into effective since the date of signature and sealing.
VI. Major related transactions安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
16
(I) There is no major non-operating related transaction.
(II) Implementations of daily operating related transactions
For details of the implementations of the Company’s daily operating related transactions, please refer to Note
XI: Interested party Relationships and Transactions.
VII. There is no performance of important contracts during the reporting period.
VIII. As at the end of the reporting period, the Company has made no major guarantee; and no
controlling shareholder or other interested party has taken up funds.
IX. Special explanation and independent opinion of the independent directors on occupation of
fund and warranty of the interested party.
According to the document ZJF [2003] No. 56 Notice on Normalizing Fund and Warrant of the Listed
Companies and Interested Parties issued by China Securities Regulatory Commission, and as the independent
directors of Anhui Gujing Distillery Company Limited, we have made the following opinions on occupation of
fund and warrant of the interested party with the principle of self-regulation, standard operation and practice and
on the basis of the investigation to the relevant information:
There are no such events in the reporting period.
We believe: the directors, supervisors and executive staff of the Company can strictly abide by relevant laws
and regulations as well as internal controls. There are no funds occupied by shareholders and other interested
parties or warrants made by other companies in any forms. The Company has well controlled the risk and
protected the interest of the middle and small shareholders.
Independent directors: Ding Yuan, Wu Cisheng, Zhou Libin
X. Promise mattes of the Company or shareholders of the Company holding no less than 5%
share.
The former shareholder of non-current share, Anhui Gujing Group Co., Ltd promises that the shares it is
holding will not be sold or transferred within 12 months. After 12 months the amount on sale will not exceed 5%
of the total amount, and after 12 months, 10%. Now Anhui Gujing Group Co., Ltd is implementing its promise.
XI. Survey, communication and interview in the reporting period
Date Place Method Object Information discussed and provided
9th April 2009 In the Company On-site survey China Merchants Securities Co., Ltd. Production and operation of company
28th April 2009 In the Company On-site survey Essence Securities Co., Ltd. Production and operation of company
5th May 2009 In the Company On-site survey GF Securities Co., Ltd. Production and operation of company
7th May 2009 In the Company On-site survey Guoyuan Securities Co., Ltd. Production and operation of company
8th May 2009 In the Company On-site survey Donghai Securities Co., Ltd. Production and operation of company
26th May 2009 In the Company On-site survey BOC International Securities Co., Ltd. Production and operation of company
1st June 2009 In the Company On-site survey Orient Securities Co., Ltd. Production and operation of company安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
17
In the first half of 2009, the investors interviewed the company through phone and the Company answered
them according to relevant system. There were no disclosures of the confidential information of the Company.
The Company will establish and complete internal control of information disclosure pursuant to Guide to
Disclosure of Information of Listed Companies of Shenzhen Stock Exchange to make sure the fairness off the
information disclosure; establish strict confidential system, prepare reception and promotion system and
Information Disclosure Registration System. Publicize the internal control system of information disclosure and
do fair information disclosure work well.
XII. Engagement of public accountants
The resolution of the Shareholder Meeting 2008 decides to continue engaging Lianda Xinlong Certified
Public Accountant for auditing work in 2009. In the reporting period, the Company has paid 0.35 million to the
public accountant.
1st June 2009 In the Company On-site survey Sinolink Securities Co., Ltd. Production and operation of company
1st June 2009 In the Company On-site survey Shanghai Dingfeng Assets
Management Co., Ltd. Production and operation of company
4th June 2009 In the Company On-site survey Penghua Fund Management Co., Ltd. Production and operation of company
4th June 2009 In the Company On-site survey Harvest Fund Management Co., Ltd. Production and operation of company
4th June 2009 In the Company On-site survey Bank of Communications Schroder
Fund Management Co., Ltd. Production and operation of company
4th June 2009 In the Company On-site survey E Fund Management Co., Ltd. Production and operation of company
4th June 2009 In the Company On-site survey PingAn Securities Co., Ltd. Production and operation of company
4th June 2009 In the Company On-site survey CCB Principal Asset Management Co.,
Ltd. Production and operation of company
5th June 2009 In the Company On-site survey Lombarda China Fund Management
Co., Ltd. Production and operation of company
8th June 2009 In the Company On-site survey GuoDu Securities Co., Ltd. Production and operation of company安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
18
Chapter VI Financial Report
I. Financial statements
Balance Sheet
Prepared by: ANHUI GUJING DISTILLERY COMPANY LIMITED June 30, 2009 Unit: RMB yuan
Items End. balance Beg. balance
Consolidated Parent company Consolidated
Current assets:
Monetary funds 222,962,756.63 104,527,524.30 278,780,676.68 160,876,265.53
Settlement reserves
Loans to other banks
Trading financial assets
Notes receivable 77,887,523.86 44,066,866.70 110,369,921.69 14,209,422.07
Accounts receivable 41,480,250.69 120,378.38 38,926,954.24 150,378.38
Advances to suppliers 4,901,333.10 2,370,359.08 8,578,537.17 550,715.08
Premium receivable
Reinsurance accounts
receivable
Receivable deposit for
reinsurance contract
Interest receivable
Dividend receivable
Other receivables 3,347,208.94 100,012,109.15 13,641,424.00 41,052,295.68
Buying back the sale of
financial assets
Inventories 362,487,609.92 305,607,295.20 472,111,360.97 376,484,276.87
Non-current assets due
within a year
Other current assets
Sub-total of current assets 713,066,683.14 556,704,532.81 922,408,874.75 593,323,353.61
Non-current assets:
Issuing of loan and
advances
Tradable financial assets
Held-to-maturity securities
Long-term receivables
Long-term equity
investment 306,976,503.54 536,185,003.12
Investment real estate 28,864,855.49 19,944,496.30 30,070,920.49 20,750,561.30
Fixed assets 405,167,861.38 130,354,974.80 559,851,659.79 127,312,151.56
Construction in progress 4,811,158.40 4,156,126.51 75,221,939.28 10,997,676.98
Construction material 115,261.62 115,261.62 1,294,344.98 115,261.62
Disposal of fixed assets
Productive bio-assets
Oil and gas assets
Intangible assets 93,165,926.78 27,241,591.81 136,102,321.09 27,634,199.23
Development expenditure
Goodwill
Long-term prepayment 2,119,445.93 2,372,932.77
Deferred income tax assets 1,243,639.23 1,599,652.25
Other non-current assets
Sub-total of non-current asset 535,488,148.83 488,788,954.58 806,513,770.65 722,994,853.81安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
19
s
Total assets 1,248,554,831.97 1,045,493,487.39 1,728,922,645.40 1,316,318,207.42
Current liabilities:
Short-term loan 10,000,000.00 10,000,000.00 75,000,000.00 50,000,000.00
Borrowings from central
bank
Accept money deposits
and deposit from other banks
Loans from other banks
Trading financial liability
Notes payable
Accounts payable 74,391,897.64 51,670,912.83 109,898,263.73 71,718,570.18
Advances from customers 88,131,545.87 221,785,650.81 58,351,641.69 189,710,231.69
Selling out the purchase of
financial assets
Service fee and
commissions payable
Payable salary and
remuneration for employees 91,232,828.30 39,985,682.52 108,455,622.30 73,293,195.95
Taxes payable 116,535,694.50 71,811,969.43 161,627,082.18 92,281,905.21
Interest payable
Dividend payable 22,452.59 22,452.59
Other payables 96,879,652.62 33,056,021.53 120,240,819.31 31,444,577.50
Reinsurance accounts
payable
Insurance contract reserves
Acting trading securities
Acting underwriting
securities
Long-term non-current
liabilities due within a year 10,000,000.00 10,000,000.00 11,000,000.00 5,000,000.00
Other current liabilities
Sub-total of current liabilities 487,194,071.52 438,310,237.12 644,595,881.80 513,448,480.53
Non-current liabilities:
Long-term loan 66,000,000.00 151,000,000.00 5,000,000.00
Bonds payable
Long-term payables
Special payables
Deferred income 1,530,000.00 1,530,000.00 9,930,000.00 1,530,000.00
Estimated liability
Deferred income tax
liability
Other non-current
liabilities
Sub-total of liabilities 67,530,000.00 1,530,000.00 160,930,000.00 6,530,000.00
Total liabilities 554,724,071.52 439,840,237.12 805,525,881.80 519,978,480.53
Owners' (or shareholders')
equity:
Paid-up capital (or stock) 235,000,000.00 235,000,000.00 235,000,000.00 235,000,000.00
Capital surplus 307,729,034.12 289,423,851.03 572,849,239.26 518,090,990.16
Less: treasury share
Special reserve
Surplus reserve 52,283,759.34 47,244,617.51 52,283,759.34 47,244,617.51
Provision for general risk
Undistributed profit 95,744,522.78 33,984,781.73 60,135,327.85 -3,995,880.78
Converted difference in fo安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
20
Income Statement
Prepared by: ANHUI GUJING DISTILLERY COMPANY LIMITED Jan. to Jun., 2009 Unit: RMB yuan
reign currency statements
Sub-total of equity subject to
the owners of the parent
company
690,757,316.24 605,653,250.27 920,268,326.45 796,339,726.89
Minority shareholders' equity 3,073,444.21 3,128,437.15
Total owner’s equity 693,830,760.45 605,653,250.27 923,396,763.60 796,339,726.89
Total of liabilities and
owners' equity 1,248,554,831.97 1,045,493,487.39 1,728,922,645.40 1,316,318,207.42
Items Current period Same period of previous year
Consolidated Parent company Consolidated
I. Total revenue from
operations 705,277,294.05 377,173,618.17 683,587,478.41 278,264,986.81
Including: revenue from
operations 705,277,294.05 377,173,618.17 683,587,478.41 278,264,986.81
Interest income
Earned premium
Income from service
fee and commissions
II. Total cost of operations 656,398,027.44 361,230,728.82 658,723,361.78 341,434,388.31
Including: cost of operations 343,337,248.98 221,175,551.78 437,947,394.92 236,371,599.71
Interest expense
Expense of service
fee and commissions
Income from
surrender of insurance
Net claim paid
Net change in
insurance contract reserves
Policyholder
dividends
Expense of
reinsurance
Taxes and surcharge
for operations 100,896,752.10 93,094,149.23 75,336,082.14 67,435,658.54
Sales expenses 124,828,963.72 315,245.49 75,835,175.73 1,035,110.88
General and
administrative expenses 76,670,096.26 39,648,546.35 68,339,583.32 36,518,366.91
Financial expenses 5,123,862.85 1,456,132.44 3,032,430.97 1,840,957.57
Losses from
impairment of assets 5,541,103.53 5,541,103.53 -1,767,305.30 -1,767,305.30
Add: Income from the
change of fair value
Investment income 20,323,997.73 75,808,739.26
Including: Income
from the investment in joint
ventures
Exchange income/loss
III. Operating profit 48,879,266.61 36,266,887.08 24,864,116.63 12,639,337.76
Add: Non-operating
expense 3,075,857.57 1,757,056.40 4,527,968.72 3,016,227.52
Less: Non-operating
expenses 428,450.42 43,280.97 415,135.51 376,183.57安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
21
Cash Flow Statement
Prepared by: ANHUI GUJING DISTILLERY COMPANY LIMITED Jan. to Jun., 2009 Unit: RMB yuan
Including: Losses from
disposal of non-current assets 301,334.06 28,422.97 62,680.54 54,307.60
IV. Income before tax 51,526,673.76 37,980,662.51 28,976,949.84 15,279,381.71
Less: Income tax expenses 15,972,471.77 10,740,629.23
V: Net profit 35,554,201.99 37,980,662.51 18,236,320.61 15,279,381.71
Net profit subject to the
owners of the parent
company
35,609,194.93 37,980,662.51 18,248,989.36 15,279,381.71
Losses and income of
minority shareholders -54,992.94 -12,668.75
VI. Earnings per share:
1. Basic earnings per
share 0.15 0.16 0.08 0.07
2. Diluted earnings per
share 0.15 0.16 0.08 0.07
Items Current period Same period of previous year
Consolidated Parent company Consolidated
I. Net cash flows from
operating activities:
Cash receipts from the
sale of goods or rendering of
services
866,791,367.60 445,913,122.64 786,195,717.10 315,224,737.02
Net increase of
customer deposit and deposit
from other banks
Net increase of
borrowings from central
bank
Net increase of loans
from other financial
institutions
Cash from gaining
premium of the original
insurance contract
Net amount of cash
received from reinsurance
Increase in policyholder
deposits and investments
Increase in disposal of
held-for-trading financial
assets
Cash received from
interest, fees and commission
Net increase in
placements from other banks
Net increase of buying
back funds
Refunds of taxes 384,233.71 520,094.81
Other cash receipts
relating to operating activitie 18,859,094.91 12,311,415.49 17,854,437.41 10,579,782.28安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
22
s
Sub-total of cash
inflows from operating
activities
886,034,696.22 458,224,538.13 804,570,249.32 325,804,519.30
Cash payments for
goods and services 343,194,790.19 162,675,134.66 476,387,323.40 147,334,023.22
Net increase of loan and
advances to customers
Net increase of deposits
in central bank and other
banks
Cash paid for original
insurance contract
Cash paid for interest,
service fee and commissions
Cash paid for dividend
of policy
Cash paid to and on
behalf of employees 125,184,921.07 63,357,274.82 84,209,198.21 53,788,729.18
Payment of all types of
taxes 247,560,957.39 157,756,313.24 191,422,557.33 103,088,025.17
Other cash payments
relating to operating
activities
18,113,578.47 71,794,529.81 17,468,343.92 13,290,536.44
Sub-total of cash
outflows from operating
activities
734,054,247.12 455,583,252.53 769,487,422.86 317,501,314.01
Net cash flows
from operating activities 151,980,449.10 2,641,285.60 35,082,826.46 8,303,205.29
II. Net cash flows from
investment activities:
Cash receipts from
return of investments
Cash receipts from
return on investment
Net cash receipts from
the sale of fixed assets,
intangible assets and other
long-term assets
300,932.78 34,447.44 698,030.17
Cash receipts from the
disposal of the subsidiary
and other business units
Other cash receipts
relating to investment
activities
Sub-total of cash
inflows from investment
activities
300,932.78 34,447.44 698,030.17
Cash payments to
acquire fixed assets,
intangible assets and other
long-term assets
15,510,929.99 3,704,299.27 40,163,617.28 18,651,981.14
Cash payments to
acquire investments 36,818,512.53 14,700,200.00
Net increase of mortgage
Net increase in cash rec安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
23
eived from sub-companies
and other business units
Other cash payments
relating to investment
activities
Sub-total of cash
outflows from investment
activities
52,329,442.52 18,404,499.27 40,163,617.28 18,651,981.14
Net cash flows
from investing activities -52,028,509.74 -18,370,051.83 -39,465,587.11 -18,651,981.14
III. Net cash flows from
financing activities:
Cash proceeds from
investments by others
Including: cash received
by sub-company from
investment of minority
shareholders
Cash proceeds from
borrowings 65,000,000.00 40,000,000.00
Cash received from
issuing of bonds
Other cash receipts
relating to financing
activities
Sub-total of cash
inflows from financing
activities
65,000,000.00 40,000,000.00
Cash payments of
amounts borrowed 151,000,000.00 40,000,000.00 45,000,000.00 20,000,000.00
Cash payments for
distribution of dividends or
profits and for interest
expenses
4,769,859.41 619,975.00 3,955,575.77 2,211,230.00
Including: dividends
and profits paid by subcompanies
to minority
shareholders
Other cash payments
relating to financing
activities
Sub-total of cash
outflows from financing
activities
155,769,859.41 40,619,975.00 48,955,575.77 22,211,230.00
Net cash flows
from financing activities -155,769,859.41 -40,619,975.00 16,044,424.23 17,788,770.00
IV. Effect of foreign
exchange rate changes on
cash
V. Net increase in cash and
cash equivalents -55,817,920.05 -56,348,741.23 11,661,663.58 7,439,994.15
Add: Beginning balance
of cash and cash equivalents 278,780,676.68 160,876,265.53 154,708,705.75 52,029,679.84
VI. Ending balance of cash
and cash equivalents 222,962,756.63 104,527,524.30 166,370,369.33 59,469,673.99安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
24
Consolidated Statement of Changes in Owners' Equity
Prepared by: ANHUI GUJING DISTILLERY COMPANY LIMITED Jan. to Jun., 2009 Unit: RMB yuan
Items
Current amount Previous amount
Owners’ equity belonged to parent company
Minor
ity
shareh
olders’
equity
Total
of
owner
s’
equity
Owners’ equity belonged to parent company
Minor
ity
shareh
olders’
equity
Total
of
owner
s’
equity
Paid-in
capital
(or stock)
Capital
surplus
Less:
treasur
y share
Special
reserve
Surplu
s
reserv
e
Gener
al risk
prepar
ation
Undist
ribute
d
profit
Others
Paidin
capital
(or
stock)
Capita
l
surplu
s
Less:
treasu
ry
share
Specia
l
reserv
e
Surplu
s
reserv
e
Gener
al risk
prepar
ation
Undist
ribute
d
profit
Others
I. Ending balance in the
previous year
235,000,
000.00
572,84
9,239.2
6
52,28
3,759.
34
60,13
5,327.
85
3,128,
437.1
5
923,3
96,76
3.60
235,0
00,00
0.00
532,6
62,31
9.68
52,28
3,759.
34
25,55
8,460.
48
3,233,
229.6
9
848,7
37,76
9.19
Add: changes in accounting
policies
Correction of early errors
Others
II. Beginning balance in the
current year
235,000,
000.00
572,84
9,239.2
6
52,28
3,759.
34
60,13
5,327.
85
3,128,
437.1
5
923,3
96,76
3.60
235,0
00,00
0.00
532,6
62,31
9.68
52,28
3,759.
34
25,55
8,460.
48
3,233,
229.6
9
848,7
37,76
9.19
III. Change in the current
year
-
265,12
0,205.1
4
35,60
9,194.
93
-
54,99
2.94
-
229,5
66,00
3.15
40,18
6,919.
58
34,57
6,867.
37
-
104,7
92.54
74,65
8,994.
41
(I) Net income
35,60
9,194.
93
-
54,99
2.94
35,55
4,201.
99
34,57
6,867.
37
-
102,4
59.46
34,47
4,407.
91
(II) profit /loss credited direct -265,12 -265,1 40,18 40,18安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
25
ly in owners' equity
0,205.1
4
20,20
5.14
6,919.
58
6,919.
58
1. Net amount from the
change of fair value of
tradable financial assets
2. Effect on the change of
other owners' equity of the
invested under the equity law
3. Effect on income tax
relating to items credited in
owners' equity
4. Others
-
265,12
0,205.1
4
-
265,1
20,20
5.14
40,18
6,919.
58
40,18
6,919.
58
Sub-total of (I) and (II)
-
265,12
0,205.1
4
35,60
9,194.
93
-
54,99
2.94
-
229,5
66,00
3.15
40,18
6,919.
58
34,57
6,867.
37
-
102,4
59.46
74,66
1,327.
49
(III) Owners' increase and
decrease of capital
1. Owners' increase of capital
2. Amount of share payment
credited in owners' equity
3. Others
(IV) Distribution of profit
-
2,333.
08
-
2,333.
08安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
26
Statement of Changes in Owners' Equity of Parent Company
Prepared by: ANHUI GUJING DISTILLERY COMPANY LIMITED Jan. to Jun., 2009 Unit: RMB yuan
1. Appropriation of surplus
reserve
2．Appropriation of general
risk preparation
3．Distribution to
owners (or shareholders)
-
2,333.
08
-
2,333.
08
4．Others
(V) Internal carry-over of
owners' equity
1. Conversion of capital
surplus into capital (or stock)
2. Conversion of surplus
reserve into capital (or stock)
3. Making up losses with
surplus reserve
4. Others
IV. Ending balance in the
current period
235,000,
000.00
307,72
9,034.1
2
52,28
3,759.
34
95,74
4,522.
78
3,073,
444.2
1
693,8
30,76
0.45
235,0
00,00
0.00
572,8
49,23
9.26
52,28
3,759.
34
60,13
5,327.
85
3,128,
437.1
5
923,3
96,76
3.60
Items
Current amount Previous amount
Paid-in
capital
(or stock)
Capital
surplus
Less:
treasury
share
Special
reserve
Surplus
reserve
Undistrib
uted
profit
Total of
owners’
equity
Paid-in
capital
(or stock)
Capital
surplus
Less:
treasury
share
Special
reserve
Surplus
reserve
Undistrib
uted
profit
Total of
owners’
equity安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
27
I. Ending balance in the
previous year
235,000,
000.00
518,090,
990.16
47,244,6
17.51
-
3,995,88
0.78
796,339,7
26.89
235,000,
000.00
518,090,
990.16
47,244,6
17.51
-
44,666,4
11.04
755,669,1
96.63
Add: changes in
accounting policies
Correction of early errors
Others
II. Beginning balance in the
current year
235,000,
000.00
518,090,
990.16
47,244,6
17.51
-
3,995,88
0.78
796,339,7
26.89
235,000,
000.00
518,090,
990.16
47,244,6
17.51
-
44,666,4
11.04
755,669,1
96.63
III. Change in the current
year
-
228,667,
139.13
37,980,6
62.51
-
190,686,4
76.62
40,670,5
30.26
40,670,53
0.26
(I) Net income
37,980,6
62.51
37,980,66
2.51
40,670,5
30.26
40,670,53
0.26
(II) profit /loss credited
directly in owners' equity
-
228,667,
139.13
-
228,667,1
39.13
1. Net amount from the
change of fair value of
tradable financial assets
2. Effect on the change of
other owners' equity of the
invested under the equity law
3. Effect on income tax
relating to items credited in
owners' equity
4. Others -228,667, -228,667,安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
28
139.13 139.13
Sub-total of (I) and (II)
-
228,667,
139.13
37,980,6
62.51
-
190,686,4
76.62
40,670,5
30.26
40,670,53
0.26
(III) Owners' increase and
decrease of capital
1. Owners' increase of capital
2. Amount of share payment
credited in owners' equity
3. Others
(IV) Distribution of profit
1. Appropriation of surplus
reserve
2. Distribution to owners (or
shareholders)
3. Others
(V) Internal carry-over of
owners' equity
1. Conversion of capital
surplus into capital (or stock)
2. Conversion of surplus
reserve into capital (or stock)
3. Making up losses with
surplus reserve
4. Others
IV. Ending balance in the
current period
235,000,
000.00
289,423,
851.03
47,244,6
17.51
33,984,7
81.73
605,653,2
50.27
235,000,
000.00
518,090,
990.16
47,244,6
17.51
-
3,995,88
0.78
796,339,7
26.89II. Notes to Financial Statements
Anhui Gujing Distillery Company Limited
Consolidated Notes to
Financial Statements
Semiannual Report 2009
(The unit is RMB unless otherwise
specified herein)
I. General information
1. History
Anhui Gujing Distillery Company Limited (“the Company”) was registered and incorporated in the
People’s Republic of China on May 30, 1996.
The Company issued domestic listed foreign-oriented share (“B Share”) of 60,000,000 shares and
RMB–denominated common share (“A Share”) of 20,000,000 shares. The face value per share is RMB 1
yuan. Both A Share and B Share of the Company are listed at Shenzhen Exchange.
The Full Circulation Reform of the Company A-share Relating Shareholders Meeting, held on May 29,
2006 examined and approved the resolution on full circulation reform of ANHUI GUJING DISTILLERY
COMPANY LIMITED and the resolution is implemented in June of 2006. Since the implementation of the
resolution, all shares of the company are subject to negotiable shares, including 147,030,800 negotiable
shares subject to conditional sales, accounting for 62.57% and 87,969,200 negotiable shares not subject to
conditional sales, accounting for 37.43%.
The Company issued the Notice of Anhui Gujing Distillery Company Limited on the Release of Share
Restriction on 27 June, 2007. The 11,750,000.00 restricted shares are released for listing and trading, and
the release date for the listing and trading of restricted shares is 29 June, 2007. As of June 30, 2007, there
are 135,257,000 negotiable shares subject to conditional sales, accounting for 57.56% and 99,743,000
negotiable shares not subject to conditional sales, accounting for 42.44%.
On 18th July 2008, 11.75 million RMB ordinary shares held by the majority shareholder Anhui Gujing
Group Co., Ltd. (hereinafter refer to as “Gujing Group”) was unrestricted and began to be listed and
circulated. As of 31st Dec. 2008, the Company owns 123,507,000 negotiable shares subject to conditional
sales which accounting for 52.56%, and 111,493,000 negotiable shares not subject to conditional sales,
accounting for 47.44%.
On 29th July 2009, 123.50 million RMB ordinary shares held by the majority shareholder Anhui
Gujing Group Co., Ltd. (hereinafter refer to as “Gujing Group”) was unrestricted and began to be listed and
circulated. As of 29th July 2009, the Company owns 2,100 negotiable shares subject to conditional sales
and 234,997,900 negotiable shares not subject to conditional sales.
Legal Representative: Cao Jie
Place of registration: Gujing, Bozhou, Anhui
Parent company: Gujing Group
2. Industry安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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The Company belongs to food manufacturing industry.
3. Scope of business
The approved scope of business of the Company includes: making and selling of spirit, beer, wine and
fruit wine; producing and selling of wine making equipment, packing material, glass bottle, alcohol, carbon
dioxide, forage, food, oil and drink; development of high technology and biotechnology; deep processing of
agricultural products.
4. Change in property owner
There are no changes in property owner in the reporting period.
II. Basis of preparation of financial statements
This financial statement is prepared according to the Accounting Standards for Business Enterprises
issued by the Ministry of Finance on 15th Feb. 2006, based on the hypothesis of continuity of activity of
the company and the actual transactions and events, abided by the important accounting policies and
estimates mentioned in Annex IV.
III. Declaration on Compliance with Accounting Standard for Business Enterprises
The financial statements prepared by the company meet the requirements of the Accounting Standard
for Business Enterprises, reflect truthfully and completely the financial status, business achievements and
cash flow as well as other information of the company.
IV. Important Accounting Policies, Accounting Estimates and preparation for combination of
financial statements
1. Accounting Year
Calendar year, from January 1 till December 31.
2. Monetary Currency
Renminbi is the monetary currency.
3. Accounting recording basis and Measurement Attributes
The accounting recognition, measurement and report are conducted on the accrual basis of accounting.
An enterprise shall generally adopt historical cost as the measurement basis for accounting elements.
If the accounting elements amounts can be obtained and reliably measured, replacement cost, net realizable
value, present value or fair value may be adopted for measuring individual accounting element.
During the reporting period, the financial assets, financial liabilities, financial assets available for sale,
and derivative financial instruments which are measured at their fair values and the variation of which is
recorded into the profits and losses of the current period. Inventories and fixed assets which subject to
deferred payment due to excess of normal credit conditions during purchasing are measured by the purchase
price. Inventories which suffer from impairment loss are measured by net realizable value. Other assets
which suffer from impairment loss are measured by recoverable amount (lower of fair value or present
value). The surplus assets are measured by replacement cost. Other items of financial statements are安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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measured by historical cost.
Historical cost: Assets are recorded at the amount of cash or cash equivalents paid or the fair value of
the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the
amount of proceeds or assets received in exchange for the present obligation, or the amount payable under
contract for assuming the present obligation, or at the amount of cash or cash equivalents expected to be
paid to satisfy the liability in the normal course of business.
Measurement attributes has no change during the report period of the company.
4. Confirmation of Cash Equivalents
Investment with short period (maturity of 3 months since purchase date), strong liquidity, easily to be
discounted into known currency and little risk of value change are confirmed as cash equivalents.
5. Foreign currency translation
(1) Transaction of Foreign Currency
Transactions denominated in foreign currencies are translated into Renminbi at the exchange rate
stipulated on the day (generally refers to the middle price of exchange listed price published by the People's
Bank of China oh that date) in which the transaction took place.
Monetary assets denominated in foreign currencies at the balance sheet date are translated into
Renminbi at the exchange rate stipulated at the balance sheet date. The balance of exchange arising from
the difference between the spot exchange rate on the balance sheet date and the spot exchange rate at the
time of initial recognition or prior to the balance sheet date shall be recorded into the profits and losses at
the current period. The foreign currency non-monetary items measured at the historical cost shall still be
translated at the spot exchange rate on the transaction date, of which the amount of functional currency shall
not be changed. Foreign currency non-monetary items measured by fair value shall be translated at the spot
exchange rate on the fair value date. The difference between the amounts in translated functional currency
and in original functional currency shall be treated as variation of fair value (including fluctuation of
exchange rate) and shall be recorded as current profit and loss.
(2) Translation of Foreign Currency Financial Statements
①The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the
balance sheet date. Among the owner's equity items, except the ones as "undistributed profits", others shall
be translated at the spot exchange rate at the time when they are incurred.
② The income and expense items in the profit statements shall be translated at the spot exchange rate
of the transaction date.
The balance arisen from the translation of foreign currency financial statements shall be presented
separately under the owner's equity item of the balance sheets.
③ The cash flow statement shall be translated at a spot exchange rate on the cash flow statement date.
The influence of exchange rate changes on cash shall be presented separately under the adjusted item of the
cash flow statement.
6. Accounting method of financial assets and financial liabilities
(1) Basis of Recognition of Financial Instruments
When an enterprise becomes a party to a financial instrument, it shall recognize a financial asset or
financial liability.
(2) Classification of financial assets and financial liabilities
The Company classifies its possessed financial assets into financial assets measured at the fair value
and the variation thereof is recorded into the profits and losses of the current period, held-to-maturity
investment, loans, receivables and sellable financial assets according to the investment purpose and
economic essence.
The Company divides financial liabilities into financial liabilities measured at the fair value and the安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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variation thereof is recorded into the profits and losses of the current period and other financial liabilities
according to the economic essence.
① The financial assets and financial liabilities which are measured at their fair values and the variation
of which is recorded into the profits and losses of the current period, including transactional financial assets
financial liabilities, and financial assets and liabilities which are measured at their fair values and of which
the variation is included in the current profits and losses;
The financial assets or liabilities meeting any of the following requirements shall be classified as
transactional financial assets or financial liabilities:
a. The purpose to acquire the said financial assets or undertake the financial liabilities is mainly for
selling or repurchase of them in the near future;
b. Forming a part of the identifiable combination of financial instruments which are managed in a
centralized way and for which there are objective evidences proving that the enterprise may manage the
combination by way of short-term profit making in the near future;
c. Being a derivative instrument, excluding the designated derivative instruments which are effective
hedging instruments, or derivative instruments to financial guarantee contracts, and the derivative
instruments which are connected with the equity instrument investments for which there is no quoted price
in the active market, whose fair value cannot be reliably measured, and which shall be settled by delivering
the said equity instruments.
Besides the provisions of Article 21 and 22 of the present Standards, only the financial assets or
financial liabilities meeting any of the following requirements can be designated, when they are initially
recognized, as financial assets or financial liabilities as measured at its fair value and of which the variation
is included in the current profits and losses:
a. The designation is able to eliminate or obviously reduce the discrepancies in the recognition or
measurement of relevant gains or losses arisen from the different basis of measurement of the financial
assets or financial liabilities;
b. The official written documents on risk management or investment strategies of the enterprise
concerned have recorded that the combination of said financial assets, the combination of said financial
liabilities, or the combination of said financial assets and financial liabilities will be managed and evaluated
on the basis of their fair values and be reported to the key management personnel.
② The term "held-to-maturity investment" refers to a non-derivative financial asset with a fixed date
of maturity, a fixed or determinable amount of repo price and which the enterprise holds for a definite
purpose or the enterprise is able to hold until its maturity, including the fixed interest rate national debt,
floating rate notes which the management of the Company has the clear intention to hold until their
maturity.
③ Accounts receivable refers to the non-derivative financial assets for which there is no quoted price
in the active market and of which the recoverable amount is fixed or determinable. Accounts receivable of
the Company mainly refer to the accounts receivable and other receivables raise from the sales of
commodities or labor provision.
④ The "sellable financial assets" refers to the non-derivative financial assets which are designated as
sellable when they are initially recognized as well as financial assets not measured at their fair values and of
which the variation is not recorded into the profits and losses of the current period, investments held until
their maturity, loans and accounts receivables.
⑤ Other financial liabilities refer to financial liabilities not measured at their fair values and of which
the variation is not recorded into the profits and losses of the current period.
(3) Measurement of financial assets and financial liabilities
The financial assets and financial liabilities initially recognized by an enterprise shall be measured at安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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their fair values. For the financial assets and liabilities measured at their fair values and of which the
variation is recorded into the profits and losses of the current period, the transaction expenses thereof shall
be directly recorded into the profits and losses of the current period; for other categories of financial assets
and financial liabilities, the transaction expenses thereof shall be included into the initially recognized
amount.
The Company shall make subsequent measurement on its financial assets and financial liabilities
according to the following methods:
① For the financial assets and financial liabilities measured at their fair values and of which the
variation is recorded into the profits and losses of the current period, they shall be measured at their fair
values. The profits and losses caused by the variation of fair values and recognition termination shall be
recorded into the profits and losses of the current period.
② The investments held until their maturity, loans and accounts receivable shall be measured on the
basis of the post-amortization costs by adopting the actual interest rate method. The profits and losses
caused by the variation of recognition termination, impairment, or amortization shall be recorded into the
profits and losses of the current period.
③ Accounts receivable shall be measured on the basis of the post-amortization costs by adopting the
actual interest rate method. The profits and losses caused by the variation of recognition termination,
impairment, or amortization shall be recorded into the profits of the current period.
④ Sellable financial asset shall be measured at their fair values, the profits and losses caused by the
variation of which the variation is recorded into the capital surplus. When disposing sellable financial assets,
the balance between the received payment and the book value of the financial assets shall be recorded into
the profits and losses of investments. The accumulative amount arising from the change of the fair value of
the owner’s equity which was directly included shall be transferred out and be recorded into the profits and
losses of investments. The balance between the impairment losses of financial assets and the exchange of
foreign monetary financial assets shall be recorded into the profits and losses of the current period. Interests
obtained during the possession of sellable financial assets and cash dividends released by the invested
company shall be recorded into the profits and losses of investments.
⑤ For the derivative financial liabilities, which are connected to the equity instrument for which there
is no quotation in the active market and whose fair value cannot be reliably measured, and which must be
settled by delivering the equity instrument, they shall be measured on the basis of their costs.
For the financial guarantee contracts which are not designated as a financial liability measured at its
fair value and the variation thereof is recorded into the profits and losses of the current period, and for the
commitments to grant loans which are not designated to be measured at the fair value and of which the
variation is recorded into the profits and losses of the current period and which will enjoy an interest rate
lower than that of the market, a subsequent measurement shall be made after they are initially recognized
according to the higher one of the following: a. the amount as determined according to the Accounting
Standards for Enterprises No. 13 - Contingencies; or b. the surplus after accumulative amortization as
determined according to the principles of the Accounting Standards for Enterprises No. 14 - Revenues is
subtracted from the initially recognized amount.
The company shall make subsequent measurement on other financial liabilities on the basis of the
post-amortization costs by adopting the actual interest rate method. The profits and losses caused by the
recognition termination and amortization shall be recorded into the profits and losses of the current period.
⑥ The "fair value" refers to the amount, at which both parties to a transaction who are familiar with
the condition exchange their assets or clear off their debts under fair conditions. In a fair transaction, both
parties to it shall be enterprises in continuous operation, and do not plan or do not need to carry out any安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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liquidation, significantly reduce their operational scale or carry out transactions notwithstanding the
unfavorable conditions they face. As for the financial assets or financial liabilities for which there is an
active market, the quoted prices in the active market shall be used to determine the fair values thereof.
Where there is no active market for a financial instrument, the enterprise concerned shall adopt value
appraisal techniques to determine its fair value.
⑦． Amortized cost: amortized cost for financial assets or financial liabilities, refers to the balance, at
which their initial recognition amounts deduct the principal repayment, and plus or minus the accumulated
amortization amounts from the balance between the initial recognition amounts and amounts on the mature
date，amortized by the effective interest method, and then deducts the occurred amounts after financial
assets impairment loss.
⑧. The effective interest method is a method to calculate their amortized cost and interest revenue or
interest charges in every period in terms of the true rate of interest for financial assets or financial liabilities
(including one set financial asset or financial liability). The effective interest rate refers to the financial
assets or financial liabilities rates on the current book value, discounted from the future cash flow of the
financial assets and financial liabilities during the expected duration or applicable shorter period. The future
cash flow is anticipated on the basis that their all contract terms (including prepayment option, call option
and similar options) should be considered, and the future credit loss, however, should not be taken into
account, when the effective interest rate is confirmed.
(4). The transfer and termination recognition for the financial assets.
①. the financial assets which have met one of the following conditions, should be terminated to recognize.
a. The Contractual right for financial assets cash flow collection is terminated;
b. The financial asset has been transferred, and the all risks and remunerations from this financial
asset ownerships have been transferred to the transferee.
c. The financial asset has been transferred. However, the company has neither transferred nor
remained the all risks and remunerations from its ownership. At the meantime, the control right for
the financial asset has been waived by the company.
②. The following two balances should be recorded in the profits and losses of the current period, when the
overall transfer of the financial assets meets the termination recognition conditions.
a. The book value of the transferred financial assets;
b. The sum of the consideration from the transfer and accumulative change amounts in the fair value
recorded in the owner’s equity before.
③. When the financial assets transfer partly meets the termination recognition conditions, the overall book
value of transferred financial assets, between the termination recognition part and non-termination
recognition part, is apportioned by the respectively relative fair values. At the meantime, the following two
balances should be recorded in the profits and losses of the current period.
a. The book value of the termination recognition part.
b. The sum of the consideration from the termination recognition party and amounts, which should
be terminated to recognize, in the change accumulative amount in fair value recorded in the
owner’s equity directly before.
④. When the financial assets fail to meet the termination recognition conditions, they should be
continuously recognized, to confirm the received consideration to be one of the financial liabilities.
Regarding of the financial assets transfer using the involvement method continuously, the company should
recognize one financial asset and one financial liability in terms of continuous involvement degree of
transferred financial assets.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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(5). The impairment of financial assets:
The book value of financial assets, measured by the fair value, as well as its change recorded out of the
profits and losses of the current period, should be examined by the company on the date of the Balance
Sheet, to determine whether there is the impairment evidence in the financial assets or not. When the
impairment is occurred, the impairment reserves of the financial assets should be provided.
①. Accounts receivables:
The receivables balance equal or more than RMB 2 million, as well as other receivables balance equal
or more than RMB 2 million, are defined to be the significant amounts of individual receivables, by the
company on the balance sheet date. The impairment test should be done for every item, and to determine its
impairment loss. The bad debts reserves , in accordance with the negative balance of the present value of its
future cash flow and its book value, if there is the objective evidence for the impairment occurrence, is
provided.
The individual receivables, without the significant amounts, should be determined impairment loss
separately, if there is the objective evidence for the impairment occurrence.
The non-significant receivables of other individual amounts with over 3-year account aging , should
be defined to be the non-significant individual receivables with the high risk portfolio after combination
upon the credit risk characteristic. Others should be defined to be the other non-significant receivables. The
non-significant individual receivables with the high risk portfolio after combination upon the credit risk
characteristic, other non-significant receivables, as well as significant individual receivables without the
impairment after individual item test, should be analyzed through their aging, and determined the
recoverable amounts in terms of the actual financial and cash flow situations of the debt entities. Bad debts
reserves should be estimated reasonably to be recorded in the profits and losses of the current period. The
Bad Debt Provision Ratio (BDPR) is ruled as follows:
The Bad Debt Provision Ratio of the following receivables portfolio, based on the same or similar
receivables portfolio (i.e. aging portfolio) in the previous years, and the current situation, is determined.
Bad debts reserves, among the subsidiaries within the scope of the consolidated financial statement,
should not be provided.
Aging Provision Ratio %
Within 6 months 1
6 months to 1 year 5
1 year to 2 years 10
2 years to 3 years 50
Over 3 years 100安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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②． Held-to-maturity investments：
The held-to-maturity investments in the company should be calculated and determined their impairment
losses on the balance sheet date, in accordance with the balance between their book value and the present
value of anticipated future cash flow, if there is objective evidence for the impairment occurrence. The
measurement of the held-to maturity investments refers to the measurement regulations of the receivables
impairment losses.
③. Available-for-sale financial assets:
On the date of balance sheet, available-for-sale financial assets in the company should be analyzed and
determined their impairment situation, i.e. if the fair value of this financial asset will reduce continuously.
Under normal circumstances, if the fair value of available-for-sale financial assets has reduced largely, or
after various corresponding factors are considered, it is estimated that this downturn is the non-temporary,
the available-for-sale financial assets can be confirmed to have occurred the impairment. Then the
impairment losses should be determined and recorded in the profits and losses of the current period. When
the impairment losses of available-for-sale financial assets, which have occurred impairment, are
determined, the accumulated losses resulted from the fair value decline are transferred from the owner’s
equity before, to be recorded in the profits and losses of the current period.
After the impairment losses recognition, during the accounting period, there is the objective evidence for
the value increase, and objectively corresponding the items occurrence after the losses recognition, the
recognized impairment losses should be switched back, and the impairment losses from the available-forsale
investments in equity instruments should be switched back in the owner’s equity, as well as the
impairment losses from sales of investment in debt instruments should be switched back to the profits and
losses of the current period. However, investments in equity instruments without quotation in the active
market and whose fair value can not be measured reliably, or the derivative financial assets connected with
their equity instruments and which have to be settled by the delivery of the equity instruments, and longterm
equity investments without the control, joint control or significant impact, and quotation in the active
market, and whose fair value can not be measured reliably, are forbidden to be switched back.
7. The recognition and measurement for inventories:
(1). The inventories in the company refer to the finished goods or commodities for the sale during the daily
activities, products prepared for production during the production process, consumed stuff and material
during the production process or the service provision process, including raw materials, packing materials,
self-made semi-finished products, products in process, and finished products etc.
(2). Stock inventory system:
Perpetual inventory system is adopted for the inventory in the company.
(3). Valuation methods for obtaining and delivery:
The obtained inventory in the company is calculated initially by the cost, which includes purchase cost,
process cost and other costs.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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Weighted averages method is used for the inventory delivery, and daily business accounting valuation is
calculated through the planned cost. Material costs differences will be carried forward at the end of the year.
The planned costs shall be adjusted to be the actual costs.
(4). Low-value consumables and the amortization method of the packing materials:
One-off amortization method is used for the low-value consumables and packaging materials.
(5). Provision policy for the inventory falling price reserves:
On the balance sheet date, the inventories in the company should be measured on the basis which one is less
between the costs and net realizable value. When the net realizable value is less than costs, inventory falling
price reserves should be provided. Under the normal circumstance, the inventory falling price reserves are
provided to the individual inventory items in the company. The inventories, with the huge quantity and low
unit price, are provided the price decline reserves, according to the inventories types. The inventories,
related to the products series sold in the same area, or having the same or similar ultimate function or
purpose, and hard to be calculated separately from other items, should be united to be measured the
provision for inventory falling price reserves.
After the provision for inventory falling price reserves, if the before effect factors for the inventory falling
price are not existed, the reduced amounts should be recovered, and switched back to the reserves, which
should be recorded in the profits and losses of the current period.
The determination of inventory net realizable value: the inventories for directly sale, such as, finished
products, commodities and materials for sale etc, should determine their net realizable value, on the basis of
the amounts, i.e. their inventory estimated sale price minus estimated marketing expense and relative tax
fee. The materials inventories, which should be processed, should be determined their net realizable value,
on the basis of the amounts, i.e. estimated sales price of the products minus the estimated costs to be
occurred, estimated marketing expense and relative tax fee. The inventories for the sale contract or labor
service contract implementation, should be calculated their net realizable value through the contract prices.
Provided that the quantity holding in the inventory is more than the quantity ordered on the sale contract,
the net realizable value of excess inventories should be calculated through the general sale prices.
8. The recognition and measurement for the long-term equity investments:
The long-term equity investments include equity investment held by the company, which have the control,
jointly control or significantly impact on the investee, or the long-term equity investments in the company,
which have no control, jointly control or significantly impact on the investee, and has no quotation in the
active market, or whose fair value can not be measured reliably.
(1). Initial measurement:
Under the two situations mentioned the below, the initial measurement of long-term equity investments can
be completed.
①.The initial investment cost of long-term equity investments from the combination is determined as the
following rules.
a. The combination consideration of long-term equity investments, from the combination of the
companies under the same control, can be paid through cash, the non-cash assets transfer, or assumed安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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liabilities method. On the combining date, the share, obtained from the owner’s equity book value of
the combined party, shall become the initial investment cost of long-term equity investments. The
capital surplus can be adjusted by the balance among the long-term equity initial investment cost and
paid cash, transferred non-cash assets and assumed liabilities book value. When the capital surplus is
not enough for offset, retained earnings should be adjusted. Regarding of the combination
consideration, based on the equity securities issue, the initial investment cost of long-term equity
investments shall be measured based on the obtained share of owner’s equity book value from the
combined party on the combining date. The capital surplus can be adjusted in terms of the equity
capital upon the total face value of issued share, and the balance between the long-term equity initial
investment cost and the total face value of issued share. When the capital surplus is not enough for
offset, the retained earnings should be adjusted. Various relative expenses for the combination,
including audit fee, evaluation charge, legal service charge etc, when they are occurred, should be
recorded in the profits and losses of the current period.
b. The long-term equity investments, obtained from the companies not under the same control, shall be
combined into the fair value, including assets offered from the acquiree for the control right on the
acquisition date, the occurred or assumed liabilities, the issued equity securities. The acquirer shall
recognize the positive balance between the combination costs and the fair value of the identifiable net
assets, obtains from the acquiree as business reputation. The negative balance between the combination
costs and the fair value of the identifiable net assets from the acquiree, shall be recorded in the profits
and losses of the current period (non-operating income). The various direct relative expenses for the
combination shall be recorded into the company’s combination costs (except for the securities and
equity instruments issue cost).
②. Apart from the said long-term equity investments, the initial investment costs of other long-term equity
investments shall be determined by the following rules.
a. The initial investment cost of long-term equity investments upon the cash payment, shall be determined
through the actually paid purchase price, including the direct expenses, tax and other necessary
expenses concerned with the long-term equity investment acquirement. However, the cash dividends,
which have been declared, but not yet received, in the price actually paid, should be accounted
separately as the receivables.
b. The initial investment cost of long-term equity investments upon the equity securities issue, shall be
determined by the fair value of issued equity securities.
c. The initial investment cost of long-term equity investment from the investors, shall be determined by
the agreed value on the investment contract or agreement, except for the unfair value agreed on the
contract or agreement.
d. The initial investment cost of long-term equity investments upon the exchange of non-monetary assets,
and if the exchange owns the commercial substance, and the fair value of the assets received or
surrendered can be measured reliably, shall be determined by the fair value of assets surrendered and
relative tax fees. Meanwhile, the balance between the fair value of the surrendered assets and book
value shall be recorded into the profits and losses of the current period. Provided that the non-monetary
assets exchange does not meet the above two conditions at the same time, the initial investment cost
shall be determined by the book value of the surrendered assets and relative tax fee.
e. The initial investment cost of long-term equity investment upon the debt restructuring, shall be
determined by the obtained equity fair value. Meanwhile, the difference between the initial investment
cost and debt book value shall be recorded in the profits and losses of the current period.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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(2). Subsequent measurement:
The cost accounting is adopted for the long-term equity investment of the subsidiaries, which is adjusted in
light of equity method when the financial statement for combination is made.
The cost accounting is used for the long-term equity investment, which has no joint control or significant
impact for the investee, and has no quotation in the active market, and whose fair value can not be measured
reliably.
The equity method accounting is adopted for the long-term equity investment, which has the joint control
and significant impact for the investee.
a. When the cost accounting is adopted, investment shall be added or recalled to adjust the cost of longterm
equity investments. The investment income of the current period is only limited in the
accumulative net profit allocation obtained after the investee accepts the investment, the profits
obtained from the declared distribution by the investee, or the part of cash dividends over the above
amount, recovery as the investment cost, book value for investment offset.
b. When the equity method accounting is adopted, the investment losses shall be determined in light of the
share of net profits or losses, which should be entitled or participated, achieved by the investee.
Meanwhile, the book value of long-term equity investment shall be adjusted.
The investment profits and losses of the current period are determined by the net profits, which should
be entitled or participated, achieved by the investee in the current year, or the occurred share of net
losses. When the net profits or net losses of the investee, which should be entitled or participated, are
determined, the different accounting policies shall be adopted in the investee entity. The investment
losses can be determined on the basis that the depreciation or amortization provisions in terms of the
fair value of the fixed assets and intangible assets in the investee entity, when the company obtains the
investment, and the assets depreciation reserves determined by the calculation based on the relative
assets fair value, the adjustment for the net profits effect in the investee entity, and offset for the internal
trading losses occurred among the company, the combined company and joint venture company. The
internal trading losses occurred between the company and investee entity, belonging to the assets
impairment losses, according to the Accounting Standards for Enterprises No. 8 – Impairment of
Assets, should be determined for the total amount.
When the net losses, which should be shared, occurred in the investee entity, are determined, the long-term
equity investments and other long-term equities constituted by the net investments in the investee entity are
reduced to be zero for the limitation (except for the investment company with the obligation to bear the
additional losses). Provided that the investee entities realize the profitability in the future, when the revenue
sharing amount is no more than the losses sharing amount, the book value of long-term equity, long-term
equity investments shall be recovered in sequence, in light of the amount over the unconfirmed losses
sharing amount.
The long-term equity investments, which have been held for the combination company and joint venture
company before the first execution day, if the debit balance of equity investment concerned with the
investment exists, they shall be amortized by the straight-line method over the remaining period, and the
amortization amount shall be recorded in the profits and losses of the current period.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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9. The recognition and measurement for the investment properties:
The investment properties refer to the real estates holding for the rent earnings and/or the capital
appreciation, which include to the leased or land use right which is prepared to be transferred after the
appreciation, and leased building.
The cost model is adopted in the company to make the subsequent measurement for the all investment
properties. Depreciation and amortization provisions of building and land use right shall be done by their
estimated service life and net residual value rate. The estimated service life, net residual value rate and
annual depreciation (amortization) rate of the investment properties are shown as follows.
If there is the evidence for the depreciation occurrence of the investment properties on the balance sheet
date, the provision of investment properties deprecation impairment shall done according to the said
method in the Note 4. 14.
10. The recognition and measurement for the fixed assets:
(1). The fixed assets refer to the tangible assets with the following features: ①. holding for the production,
service offering, lease or management; ②. Over one accounting year service life.
(2). The fixed assets meeting the following conditions should be recognized: ①. Economic benefits related
to this fixed asset may flow to the company; ②. This fixed asset cost can be measured reliably. The
subsequent expenditure related to this fixed asset, meeting the above recognition conditions, can be
recorded in the fixed assets cost. If it fails to meet the above recognition conditions, it should be recorded in
the profits and losses of the current period when it is occurred. .
(3). The fixed assets shall be measured initially in light of the cost. The fixed asset from the financial leasing
shall be recorded in the book on the basis of the lower present value between the fair value of leasing asset
from the leasing date, and the minimum lease payment. And depreciation shall be provided in terms of
owned fixed assets depreciation policy.
(4). Composite life method is adopted for the fixed assets depreciation. The depreciation period, annual
The Type of
The Investment
Properties
Estimated Residual
Value Rate
Estimated Service
Life
Annual Depreciation
(amortization)
Rate (%)
Housing and
Building 3-5 8-35 years 2.7-12.1
Land use right 0 50 years 2安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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depreciation rate, and residual value rate are as follows:
(5). The fixed assets, with the six months unavailability resulted from the operation under the capacity or
natural disasters, are determined to be the idle fixed assets (except for the seasonal unavailability). The
same depreciation method as the other fixed assets shall be used for the idle fixed assets.
(6). There is the evidence for the occurrence of the fixed assets depreciation, on the balance sheet. The
provision for fix assets reserves shall be done by the said method in the Note 4. 14.
11. The recognition and measurement for the construction in progress:
(1). When the construction in progress meets the both requirements, the economic benefits may flow in, and
the cost can be measured reliably, it shall be recognized. It shall be measured on the basis that the asset can
achieve the occurred actual cost before scheduled available status.
(2). When the construction in progress achieves the scheduled available status, it shall be transferred to the
fixed assets in light of its actual cost. The construction in progress, which has achieved the scheduled
available status, but not completed the final accounts of project, shall be transferred to the fixed assets by its
estimated value. After the completion of the final accounts, Its estimated value can be adjusted by its actual
cost, but the provision for depreciation shall keep the same, without the adjustment.
(3). There is the evidence for the depreciation of the construction in progress, on the balance sheet date. Its
depreciation reserves shall be provided by the method on the Note 4.14.
The Type of
The Fixed Assets
Estimated Residual
Value Rate
Depreciation Period Annual Depreciation
Rate (%)
Housing and
Building 3-5 8-35 years 2.7-12.1
Machinery
Equipments
3-5 8-10 years 9.7-12.1
Transportation
Facilities
3 8 years 12.1
Office Facilities
and Others
3 8 years 12.1安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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12. The recognition and measurement for the intangible assets:
(1). The intangible assets are measured initially in light of the cost.
(2). Unlimited service life of the intangible assets can be measured by the following condition, i.e. the
economic benefits period to the company can be determined reasonably from the intangible assets, based on
the comprehensive factors and decisions, such as, their contractual rights, other statutory rights, the same
industry situation, historic experience and relative experts verification etc. The intangible assets, which fail
to be determined its economic benefits period reasonably, shall be recorded in the intangible assets with the
uncertain service life.
(3). The following factors should be considered for the limited service life intangible assets, when their
service life is estimated. ①. the service life information obtained from the similar assets, through the
analysis for the general life cycle of the products made from this assets; ②. the current situation for the
technology and process etc and the estimation for the future development trend; ③. the products made from
this assets or market requirement situation for the labor provision; ④. the anticipated actions taken by the
current or potential competitors; ⑤. the expected maintenance expenditure for retaining the assets
profitability, and anticipated capability for relative expenses; ⑥. the corresponding laws and regulations for
the assets control period, or similar limitation, such as, concession period and lease term etc. ⑦. the
relatedness with other assets service life in the company.
(4). The limited service life intangible assets, shall be realized amortization in system and reason way in
light of the expected realization method of economic benefits related to the intangible assets, within the
service life. The limited service life intangible assets, which can not be determined reliably their expected
realization method, can adopt the straight-line amortization. The uncertain service life intangible assets
shall not be amortized, but their service life shall be reexamined, and done the impairment test every year.
(5). The intangible assets shall be examined to estimate their future profitability on the balance sheet date.
Their impairment reserves shall be provided by the said method on the Note 4. 14.
(6). The expenses for internal research and development on the research phase, should be recorded in the
profits and losses of the current period when they are occurred. These expenses meeting the following安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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conditions, shall be determined to be the intangible assets. ①. The intangible asset is completed and can be
used or sold with the technologic feasibility; ②. The intangible asset is planed to be completed, and used or
sold; ③. The methods to take the economic benefits, include to use the existing market of the intangible
asset products, or the existing market of the intangible asset self, and the used internally intangible assets,
which can be proved its usefulness. ④. The development of this intangible asset can be completed, based
on the enough technology, financial resources and others, and it is able to be used or sold. ⑤. The expenses
for the this intangible asset can be measured reliably.
13. The amortization method for long-term costs to be amortized:
The long-term costs to be amortized in the company refer to the various fees, which have been occurred, but
should be shared in the current year or in the different periods in the future, with the over one year
amortization period. The long-term costs to be amortized shall be recorded in the book according to the
actual expenditure, and amortized on average within the benefit period.
14. Assets depreciation
(1) No matter there is the sign of asset depreciation, minimum yearly impairment test should be carried out
for goodwill independently listed in the financial statements. If there is the sign of depreciation for fixed
asset, construction-in-progress, intangible asset, investment real estate adopting the cost model
accounting method and long term equity investment，on the balance sheet day, impairment test should
be carried out. In case that the impairment test result shows recoverable amount of assets is lower than
its book value, devaluation allowance is made on basis of the difference and accounted in the
depreciation loss. The recoverable amount should be the higher one between the net value after the fair
value deducting the disposal expense and the current value of the expected future cash flow of the fixed
assets. Assets devaluation allowance should be provided on item-to-item basis. If it is hard to estimate
the recoverable amount on item-to-item basis, it is to determine the recoverable amount of the assts
group by the assts group that the asset belongs to. Assts group is the minimum asset combination
independently generating cash flow.
(2) Judge the sign of depreciation
① The market value of the asset is plumped in the period and the decrease is obviously more than the
decrease in the normal service of the asset.
② There is or will be substantial change in the economical, technical, and legal conditions of the
company and the market condition of the asset, causing unfavorable impact on the company.
③ The market interest rate or investment return rate in other market have been raised in the period,
consequently affecting the calculation of the discount rate of the current value of the future cash
flow of the asset and causing heavy decrease of the recoverable value of the asset.
④ It is evidently proved that the asset is outdated or its main body has been damaged.
⑤ The asset has been or will be idled, put aside, or disposed ahead of schedule.
⑥ The internal report shows that the economical performance of the asset has been or will be lower
than the expected figure, e.g. the net cash flow or business profit (loss) is far lower (higher) than the
expected figure etc.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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(3) Decide asset group
The asset group should be decided based on whether the cash flow of the asset group is independent
from other asset or asset group, meanwhile consider the measure of management and operation (e.g.
whether based on production line, type of business or region or area) of the enterprise management, as
well as the measure on the continuous use and disposal of the asset. The asset group should be kept
consistent for every accounting period once decided.
If there is active market for the product (or other output) produced by combination of several assets,
even some or all of the products (or other output) are for internal use, in case of compliance with the
foresaid clause, the combination of the these assets are decided as an asset group. If the cash flow of the
assets group is affected by inner transfer price, it is to determine the future cash flow of the asset group
on basis of the most accurate future price during faire trade by the enterprise management.
Goodwill reflected in the consolidated financial statement excludes goodwill of subsidiaries belonging
to minority shareholders' equity. However, when the impairment test is carried out for the asset grouprelated
(or asset group combination, the same below), the goodwill belonging to minority shareholders'
equity is included. Adjust book value of the assets group, and then compare the adjusted book value of
the asset group with the recoverable amount to decide there is depreciation caused for the asset group
(including goodwill). In case depreciation for the asset group above, it is to decide the goodwill
impairment loss of the parent company by the loss proportion after deduction of share of minority
shareholders' equity.
(4) The asset depreciation loss above should not be reversed once it is recognized, even if its value recovers
in the subsequent period. .
15. Recognition and measurement of payroll
(1) Payroll
It mainly includes Wage, bonus, allowance, welfare, social insurance and house reserves, labor fee and
employee education fee, Other relevant expenditures of services offered by the employees.
During the accounting period the employees provide service, the company decides the payroll payable
as debt, and it is accounted as related asset cost and fee according to the beneficiary of service provided
by the employees. The compensation for cancellation of employment is accounted in profit/loss in
current period.
(2) Dismiss welfare
Dismiss welfare indicates the compensation for cancellation of employment including the
compensation for cancellation of employment decided by the company before the expiration of
employment contract and no matter the employee agrees not; compensation for canceling the labor
relationship with any employee prior to the expiration of the relevant labor contract or bringing forward
any compensation proposal for the purpose of encouraging the employee to accept a layoff; early
retirement carried out in the company.
① Recognition principle of dismiss welfare:
a. Where the enterprise has formulated a formal plan on the cancellation of labor relationship or has
brought forward a proposal on voluntary layoff and will execute it soon.
b. The enterprise is unable to unilaterally withdraw the plan on the cancellation of labor relationship
or the layoff proposal.
② Measurement of dismiss welfare：
a. For the dismiss plan that the employees have no options, the provision of payroll payable is made
according to quantity of employees proposed to canceling employment and dismiss compensation
for each employee specified as the plan clauses.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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b. For the offering to accept payoff proposal, it is firstly to estimate the quantity of employees
accepting payoff, and then the provision of payroll payable is made according to quantity of
employees estimated and dismiss compensation for each employee.
③ Recognition standard of dismiss welfare:
a. For the plan of cancellation of employment or a proposal on voluntary layoff by period or by
stage, when the plan of each period or stage meets the requirements of estimated debt recognition
conditions, it is to recognize the estimated debt caused by providing dismiss welfare of this period
or stage, and account in management cost of the current period that the plan of this part satisfies
the estimated debt recognition condition.
b. For the early retirement meeting the regulations, the wages that the enterprise proposes to pay for
the employee of early retirement and social insurance fees from the date on which the employee
stops providing service to the date of normal retirement is decided as estimated debt.
16. Recognition and measurement of share-based payment
The share-based payments of the company shall consist of equity-settled share-based payments and
cash-settled share-based payments.
(1) Cash-settled share-based payment
The term "cash-settled share-based payment" refers to he fair value calculation calculated and decided
on basis of shares or other equity instruments undertaken by the enterprise.
As to an equity-settled share-based payment, if the right may be exercised immediately after the grant,
the fair value of the equity instruments shall, on the date of the grant, be included in the relevant cost or
expense and the debt shall be increased accordingly.
As to a equity-settled share-based payments, if the right cannot be exercised until the vesting period
comes to an end or until the prescribed performance conditions are met, then on each balance sheet date
within the vesting period, the services obtained in the current period shall, based on the most accurate of
the number of vested equity instruments, be included in the relevant costs or expenses and the debt at
the fair value of the equities instruments on the date of the grant.
(2) The Equity-settled Share-based Payments
The equity-settled share-based payment in return for employee services shall be measured at the fair
value of the equity instruments granted to the employees.
As to an equity-settled share-based payment in return for services of employees, if the right may be
exercised immediately after the grant, the fair value of the equity instruments shall, on the date of the
grant, be included in the relevant cost or expense and the capital reserves shall be increased
accordingly.
As to a equity-settled share-based payment, if the right cannot be exercised until the vesting period
comes to an end or until the prescribed performance conditions are met, then on each balance sheet
date within the vesting period, the services obtained in the current period shall, based on the most
accurate of the number of vested equity instruments, be included in the relevant costs or expenses and
the capital reserves at the fair value of the equities instruments on the date of the grant
17. Estimated debt
(1) The recognition principle of estimated debt
In case of obligations relating to contingency including external guarantee, lis pendens or arbitration,
product quality warranty, redundancy, loss contract, reconstructing obligation, fixed asset discard
obligation and the obligation related to the contingent issues should be recognized as debt if it meet
following conditions:安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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① The obligation is the current obligation of the company;
② Implementation of the obligation may cause the outflow of the financial profit from the company;
③ The amount of the obligation can be reliably calculated.
The unprofitable contract and the restructuring obligation of the company should be recognized as the
debt if it meets above conditions.
(2) Measurement of estimated debt
Initial measurement is carried out for the estimated debt according to the most accurate of economical
benefit outflow possibly caused when performing the related current obligations, and to determine the
most accurate, an enterprise shall take into full consideration of the risks, uncertainty, time value of
money, and other factors pertinent to the contingencies. If the time value of money is of great
significance, the most accurate shall be determined after discounting the relevant future outflow of cash.
The company checks the book value of the estimated debts on the balance sheet date, and adjusts the
book value to reflect the current most accurate. The amount increased of the estimated debt book value
caused by time process is decided as interest charge.
(3) Recognition of the most accurate estimated debt
The most accurate figure of the expense should be the average figure of the cap amount and floor
amount if the expense is in certain range; the expense should be decided based on following conditions
if it is not within a bound:
① The most accurate figure should be the most likely happened amount if the contingent issues
involve one item;
② The most accurate figure should be decided based on the possible amount and the probability if the
contingent issues involve several items. Recognize the compensation amount as the asset if the
amount is partly or wholly retrievable from the third party or other parties. The compensation
amount recognized should not exceed the book value of the debt.
18. Income recognition principle
(1) Goods-selling
Goods-selling of products from company can not be recognized until the following conditions are
satisfied at the same time:
① The company has transferred the main risk and recompense of goods ownership to the purchaser;
② The company neither reserves the continuous management rights generally related with ownership
nor performs effective control on the sold goods;
③ The amount of income can be reliably measured;
④ The related economical benefit possibly flows to the company;
⑤ The related incurred cost or cost to be occurred can be reliably measured.
(2) Service-providing
① Adopt the completion percentage method to recognize the service income if the result of serviceproviding
can be reliably estimated on the date the financial statement is prepared. The completion
percentage method refers to a method to recognize the revenues and expenses in the light of the
stage of completion under a transaction concerning the providing of labor services.
The completion schedule on the service-providing should be decided based on following
conditions:
a. The amount of revenue can be measured in a reliable way;
b. The relevant economic benefits are likely to flow into the enterprise;
c. The schedule of completion under the transaction can be confirmed in a reliable way; and
d. The costs incurred or to be incurred in the transaction can be measured in a reliable way.
② If an enterprise can not, on the date of the balance sheet, measure the result of a transaction
concerning the providing of labor services in a reliable way, it shall be conducted in accordance安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
47
with the following circumstances, respectively:
a. If the cost of labor services incurred is expected to be compensated, the revenue from the
providing of labor services shall be recognized in accordance with the amount of the cost of
labor services incurred, and the cost of labor services shall be carried forward at the same
amount; or
b. If the cost of labor services incurred is not expected to compensate, the cost incurred should be
included in the current profits and losses, and no revenue from the providing of labor services
may be recognized.
(3) Asset right negotiating
Asset right negotiating income includes interest income, usage income, etc. It should be decided based
on following conditions:
① The economical benefit concerning the transaction are likely to flow into the enterprise;
② The amount of revenue can be measured in a reliable way.
The amount of interest income should be calculated based on the time and actual interest rate
applicable to the company’s fund used by others.
The amount of usage income should be calculated based on the days and method for fee-charging as
agreed or contracted thereof.
19. Recognition and measurement of government subsidy
(1) Government subsidy can be recognized only after meeting following conditions:
① The company is qualified for government subsidy;
② The company can receive government subsidy.
(2) Measurement of government subsidy:
① The government subsidy should be accounted based on the amount received or receivable if it is
monetary asset; the government subsidy should be accounted based on its fair value if it is nonmonetary
asset, or is accounted based on its nominal amount if its fair value is not available.
② The government subsidies pertinent to assets shall be recognized as deferred income, equally
distributed within the useful lives of the relevant assets, and included in the current profits and
losses. But the government subsidies measured at their nominal amounts shall be directly included
in the current profits and losses. In case of sale, transfer, discard or broken of the asset-related
before expiration of lifespan, it is to transfer the undistributed deferred income into current
loss/benefit of assets disposal in a one-off way.
The government subsidies pertinent to incomes used for compensating the related future expenses
or losses of the enterprise shall be recognized as deferred income and shall included in the current
profits and losses during the period when the relevant expenses are recognized; or those subsidies
used for compensating the related expenses or losses incurred to the enterprise shall be directly
included in the current profits and losses.
③ If it is necessary to refund any government subsidy, which has been recognized, it shall be treated
respectively in accordance with the circumstances as follows:
a. If there is the deferred income concerned, the book balance of the deferred income shall be
offset against, but the excessive part shall be included in the current profits and losses; and
b. If there is no deferred income concerned to the government subsidy, it shall be directly included
in the current profits and losses.
20. Recognition and measurement of loan expense
(1) The recognition principle of the capitalization of the loan expense
The loan expense that can be directly classified into the purchase or production of the capitalizable asset安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
48
should be capitalized and posted into the cost of relevant asset; other loan expense should be recognized
as the expense at the time it is incurred and posted into the loss or profit account. Capitalizable asset
means such assets as fixed asset, investment real estate, and inventory that need long time construction
and production before reaching the usable or sellable status. The loan expense can be capitalized only
after meeting following conditions:
① The asset expense has taken place, asset expense includes the expense in the form of cash payment,
non-cash asset transfer, or interest-bearing-debt undertaking that is incurred for constructing or
producing capitalizable assets.
② The loan expense has taken place;
③ The construction or production necessary for enabling the asset to reach the usable or sellable status
has been started.
(2) The period of capitalization of the loan expense
① Capitalization begins once the following conditions are met synchronously as below: the asset
expense has taken place; the loan expense has taken place; the construction or production
necessary for enabling the asset to reach the usable or sellable status has been started.
② Suspend capitalization: The capitalization of the loan expense should be suspended if the
construction or production of the capitalizable asset is interrupted for 3 months; the loan expense
during the suspended capitalization is decided as current expense till the restart of construction or
production.
③ Cease capitalization: the loan expense is no longer capitalized if the capitalizable asset reaches the
scheduled usable or sellable status.
(3) The capitalizable amount of the loan expense
As for specifically borrowed loans for the acquisition and construction or production of assets eligible
for capitalization, the to-be-capitalized amount of interests (including amortization of discounts or
premiums) shall be determined in light of the actual cost incurred of the specially borrowed loan at the
present period minus the income of interests earned on the unused borrowing loans as a deposit in the
bank or as a temporary investment. Where a general borrowing is used for the acquisition and
construction or production of assets eligible for capitalization, the enterprise shall calculate and
determine the to-be-capitalized amount of interests on the general borrowing (weighted average interest
rate) by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing used.
During the period of capitalization, the amount of interest capitalized during each accounting period
shall not exceed the amount of interest actually incurred to the relevant borrowings in the current period.
During the period of capitalization, the exchange balance on foreign currency borrowings shall be
capitalized, and shall be recorded into the cost of assets eligible for capitalization. For the ancillary
expense incurred to a specifically borrowed loan, those incurred before a qualified asset under
acquisition, construction or production is ready for the intended use or sale shall be capitalized at the
incurred amount when they are incurred, and shall be recorded into the costs of the asset eligible for
capitalization; those incurred after a qualified asset under acquisition and construction or production is
ready for the intended use or sale shall be recognized as expenses on the basis of the incurred amount
when they are incurred, and shall be recorded into the profits and losses of the current period. The
ancillary expenses arising from a general borrowing shall be recognized as expenses at their incurred
amount when they are incurred, and shall be recorded into the profits and losses of the current period.
21. Recognition and measurement of enterprise income taxes
(1) The company adopts asset liability method to calculate the enterprise income tax.
(2) On basis of difference between the book value of assets and debt with the tax base, the deferred income
tax assets or the deferred income tax liabilities shall be determined according to the applicable tax rate
during the expected period of the assets withdrawal or debt discharge.安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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(3) Recognition basis of deferred income tax assets
① The company shall recognize the deferred income tax liabilities arising from a deductible
temporary difference to the extent of the amount of the taxable income that it is most likely to
obtain and which can be deducted from the deductible temporary difference. However, the deferred
income tax assets, which are arising from the initial recognition of assets or liabilities during a
transaction, which is simultaneously featured by the following, shall not be recognized:
a. This transaction is not business combination; and
b. At the time of transaction, the accounting profits will not be affected, nor will the taxable
amount (or the deductible loss) be affected.
② Where the deductible temporary difference related to the investments of the subsidiary companies,
associated enterprises and joint enterprises can meet the following requirements simultaneously,
the company shall recognize the corresponding deferred income tax assets:
a. The temporary differences are likely to be reversed in the expected future; and
b. It is likely to acquire any amount of taxable income tax that may be used for making up the
deductible temporary differences.
③ As for any deductible loss or tax deduction that can be carried forward to the next year, the
corresponding deferred income tax assets shall be determined to the extent that the amount of
future taxable income to be offset by the deductible loss or tax deduction to be likely obtained.
(4) Recognition of deferred income tax
Except for the deferred income tax liabilities arising from the following transactions, an enterprise shall
recognize the deferred income tax liabilities arising from all taxable temporary differences:
① The initial recognition of goodwill;
② The initial recognition of assets or liabilities arising from the following transactions that are
simultaneously featured by the following:
a. The transaction is not business combination;
b. At the time of transaction, the accounting profits will not be affected, nor will the taxable
amount (or the deductible loss) be affected.
③ The taxable temporary differences related to the investments of subsidiary companies, associated
enterprises and joint enterprises shall recognize corresponding deferred income tax liabilities.
However, those that can simultaneously meet the following conditions shall be excluded:
a. The investing enterprise can control the time of the reverse of temporary differences; and
b. The temporary differences are unlikely to be reversed in the excepted future.
(5) The carrying amount of deferred income tax assets shall be reexamined on balance sheet day. If it is
unlikely to obtain sufficient taxable income taxes to offset the benefit of the deferred income tax assets,
the carrying amount of the deferred income tax assets shall be written down. When it is probable to
obtain sufficient taxable income taxes, such write-down amount shall be subsequently reversed.
22. Preparation of consolidated financial statement
(1) Recognition of consolidated scope
The consolidated financial statement should be prepared in accordance with Corporate Accounting
Guideline No.33 --- Consolidated Financial Statement issued in Feb. 2006. Decide the degree of
consolidation based on the controlled entity, consolidate the financial statements of the company,
subsidiaries and special entity under direct or indirect control of the company. Control indicates that the
company has the right to decide finance and management policies of the invested companies, and can
get benefit from the management activities of this enterprise due to it.
In case of evidence showing that the invested company is out of the control of the parent company, it
shall not be included in the consolidated statement.
(2) Disposal of purchasing or selling equity of subsidiary
The company decides the time actually transferring the risk and recompense concerning the purchased安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
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or sold equity of the subsidiary as acquisition date and sales date. As for the purchased or sold subsidiary
in a business combination not under the same control, the operating results and cash flow before the
acquisition and sales date are properly included in the consolidated profit statement and cash flow
statement; As for the purchased or sold subsidiary in a business combination under the same control, the
operating results and cash flow from the beginning of the current combination to the combining date are
properly and independently listed in the consolidated profit statement and cash flow statement; The
comparison in the consolidated financial statement is made accordingly adjustment.
As for the long term equity investment formed by acquisition of minority equity of the subsidiary, when
preparing the consolidated financial statement, the company should enjoy the difference between net
asset share of the subsidiary continuously calculated start from the acquisition date (or combining date)
with the newly acquisition of long term equity investment due to acquisition of minority equity and the
calculation based on gained more proportion of share, adjust owners equity (capital reserves). In case
that the capital reserves are insufficient to offset, adjust the retained income.
(3) In case of difference between the accounting policies, accounting period of the subsidiary with those of
the parent company, it is to adjust the financial statement of the subsidiary.
If the accounting policy carried out by the subsidiary is not the same as that of the parent company, the
financial statement is made accordingly adjustment following the accounting policy of the company
when preparing the consolidated financial statement; as for the subsidiary in business combination not
under the same control, its financial statement is made accordingly adjustment on basis of fair value of
the identifiable asset, debt and contingent liabilities on the acquisition date.
(4) Method of consolidation
When preparing the financial statement, all the significant accounts and transactions between the
company and the subsidiaries and those between the subsidiaries shall be offset.
The part of minority equity of the net asset of the combined subsidiary is independently listed in the
shareholder equity of the consolidated financial statement. If the loss undertaken by the minority
shareholders exceeds the equity in the subsidiary, on the precondition that the minority shareholder has the
obligation and ability to make recovery, it is to offset the minority equity; otherwise, the excess loss-related
shall be undertaken by the company.
V. Changes of accounting policies and estimates and correction of early errors
1. Changes of accounting policies
No change of accounting policies during the reporting period.
2. Changes of accounting estimates
No change of accounting estimates during the reporting period.
3. Correction of accounting errors
No correction of early errors during the reporting period.
VI. Taxation安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
51
The available taxes and tax rate of the Company are as follows:
According to the Reply of WGSH [2007] No. 265 Document replied by the Anhui State
Administration of Taxation, the subsidiary Hefei Gujing Trading Co., Ltd. is a newly established enterprise
in poverty area confirmed by the state, which can enjoy the preferential policy of exemption of enterprise
income tax (exemption period: 1st Jan. 2007 to 31st Dec. 2009). According to the provision of CS [2008] No.
1 document – Notice on Certain Preferential Policies of Enterprise Income Tax issued by the Ministry of
Finance and State Administration of Taxation, the subsidiary Hefei Gujing Trading Co., Ltd. will cease to
enjoy the foresaid taxation preferential policies since 1st Jan. 2008. The enterprise income tax rate is 25%.
VII. Business combination and consolidated financial statement
1. Basic information of combined subsidiaries
Taxes Taxation basis Tax rate%
Value-added tax
Income of sales of products and raw
materials
17
Operation tax Income of business tax payable 3&5
Consumption tax
Production, sales amount, and sales
volume of products tax payable
Advalorem: 20%; specific duties: 1
yuan/kg
Urban development and construction tax Paid-up turnover tax 5
Education surcharge Paid-up turnover tax 3
Local education surcharge Paid-up turnover tax 1
Enterprise income tax Income tax payable 25
No. Name of subsidiaries Registered
address
Business
property
Registered
capital
(‘0,000)
Investment
amount
(‘0,000)
Investment Voting
right
proportion
%
Business scope
proportion%
1 Bozhou Gujing Sales Co. Ltd Bozhou,
Anhui
Commercial
trade 8,486 8,486 100 100
Wholesale of spirit, construction
material, forage and
raw/supplementary material
2 Shanghai Gujing Trading Co., Ltd Shanghai Commercial
trade 1,000 1,000 100 100
Sale of spirit, general merchandise,
construction material and food, etc.
3 Hefei Gujing Trading Co., Ltd
Hefei,
Anhui
Commercial
trade 1,000 1,000 100 100
Wholesale of general merchandise,
hardware and construction material
4 Anhui Laobada Distillery Co., Ltd
Bozhou,
Anhui
Commercial
trade 3,000 2,800 93.33 93.33
Wholesale and retail of alcoholic
products
5 Anhui Ruifuxiang Food Co., Ltd
Bozhou,
Anhui Production 26,500 26,500 100 100 Sale of spirit and fruit wine
6
Bozhou Gujing Vehicle Transportation Co.,
Ltd
Bozhou,
Anhui
Vehicle
transportation 695 695 100 100
Production and sale of flour and corn
power; export of goods and technolog安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
52
2. Change of combination scope during reporting period
(1) One combined company is newly established during the reporting period compared to the beginning
of the year:
(2) Basic information of combining enterprise:
The newly established subsidiary within the combination scope is formed by business combination
under the same control within the reporting
① Determination of business combinations under the same control
A business combination under the same control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or the same parties both before and after
the business combination and on which the control is not temporary. The basis for determination of business
combination under the same control of the Company includes:
A. The combining enterprises are ultimately controlled by the Group both before and after the business
combination
B. Before combination, the combining enterprises have been under the control of the Group for more
than 1 year (including 1 year), and reporting subject after the combination also has been under the control of
the Group for more than 1 year (including 1 year). Combination meets both the foresaid conditions will be
determined by the Group as a business combination under the same control.
ies approved by the state
7 Bozhou Gujing Glass Products Co., Ltd
Bozhou,
Anhui Production 6,646 6,646 100 100 Vehicle freight, sale and repair service
8 Bozhou Gujing Waste Recycle Co., Ltd Bozhou,
Anhui Waste recycle 100 100 100 100
Recycle of glass bottle, glass dreg,
waste carton and other wastes
9 Bozhou Gujing Hotel Co., Ltd. Bozhou,
Anhui Hotel business 1,414 1,312 92.77 92.77
Catering, lodging, parking,
commodities wholesale, retailing
etc.
10 Bozhou Parott Packing Product Co., Ltd. Bozhou,
Anhui Production 5,000 5,000 100 100
Printing, manufacture, and sales
of packing and decorating
materials (including packing and
decoration, materials production,
printing matters, and other
printing matters)
11 Shanghai Gujing Jinhao Hotel
Management Co., Ltd. Shanghai Hotel business 5,400 5,400 100 100
Hotel management (except
catering management and hotel
management), lease of self-owned
house, and establishment of
affiliated branches
Newly established
subsidiary
Total shares
proportion %
Total Voting right
proportion %
Shanghai Gujing
Jinhao Hotel
Management Co.,
Ltd.
100 100安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
53
In a business combination under the same control, the party which obtains the control on other
combining enterprise(s) on the purchase date is the combining party (the Company), and other combining
enterprise(s) is (are) the combined party.
② Determination for assets obtained during the combination and entry value of liabilities and
treatment of combination balance and Beginning balance of consolidation statement
The assets and liabilities that the Group obtains in a business combination shall be measured on the
basis of their carrying amount in the combined party on the combining date. As for the balance between the
carrying amount of the net assets obtained by the Group and the carrying amount of the consideration paid
by it (or the total par value of the shares issued), the additional paid-in capital shall be adjusted; if the
additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted
For the subsidiary established due to the business combination under the same control during the
reporting period, the Beginning balance of the consolidated balance sheet shall be adjusted when preparing
the balance sheet.
③ Actual controller of the some control
The actual controller of the some control is Gujing Group.
④ Basic information of combining enterprises
Name of company: Shanghai Gujing Jinhao Hotel Management Co., Ltd.
Registered address: 700 Changshou Rd., Putuo, Shanghai
Registered capital: RMB 54 million
Business scope: Hotel management (except catering management and hotel management), lease of selfowned
house, and establishment of affiliated branches (businesses related to the administrative license shall
be operated with the license).
The main asset of Gujing Jinhao is Shanghai Gujing Holiday Hotel which is a four-star hotel with
proper operation. Gujing Jinhao concludes a management contract with the subordinate brand company of
UK Inter Continental Hotels Management Group – Holiday Hotel (China) Co., Ltd. According to the
contract, as the agent of Gujing Jinhao, Holiday Hotel (China) Co., Ltd. shall management the hotel
according to the operation standards and standard of four-star hotel issued by National Tourism
Administration.
Established on 21st March 1995, Gujing Jinhao is invested by Anhui Bozhou Gujing Real Estate
Development Company and Shanghai Fenghua Economic Development Company. The registered capital is
RMB 10 million, which include RMB 9 million of Anhui Bozhou Gujing Real Estate Development
Company (90% equity) and RMB 1 million of Shanghai Fenghua Economic Development Company (10%
equity).
In October 2000, the shareholders' meeting of Gujing Jinhao consented to transfer 10% equity held by
Shanghai Fenghua Economic Development Co., Ltd. to Anhui Gujing Hotel (Group) Co., Ltd. In August安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
54
2001, Anhui Gujing Hotel (Group) Co., Ltd. increased the capital by RMB 44 million, therefore the
registered capital after the alteration was RMB 54 million, which including RMB 9 million of Anhui
Bozhou Gujing Real Estate Development Company (16.67% equity) and RMB 45 million of Anhui Gujing
Hotel 24 (Group) Co., Ltd. (83.33% equity). In December 2004, Gujing Group integrated the equity, and
replaced Anhui Bozhou Gujing Real Estate Development Company with Anhui Gujing Group Co., Ltd. to
invest. In August 2008, Gujing Jinhao held the 2008 annual shareholders' meeting and decided to transfer
83.33％ equity of Gujing Jinhao Company held by Anhui VISTA Commerce and Tourism (Group) Co., Ltd.
(the name of Anhui Gujing Hotel (Group) Co., Ltd. has been changed into Anhui VISTA Commerce and
Tourism (Group) Co., Ltd. in September 2007). As of now, Anhui Gujing (Group) Co., Ltd. possesses 100%
equity of Gujing Jinhao. In January 2009, the name of Shanghai Gujing Jinhao Real Estate Development
Co., Ltd. was changed into Shanghai Gujing Jinhao Hotel Management Co., Ltd.
⑤ Explanation to combination
According to the assets replacement agreement concluded by the Company and Gujing Group, with
approval of 2008 annual shareholders’ meeting, the proposal for replacement between 100% equity of
Anhui Ruifuxiang Food Co., Ltd. held by the Company and 100% equity of Shanghai Gujing Jinhao Hotel
Management Co., Ltd. (Previous Shanghai Gujing Jinhao Real Estate Development Co., Ltd.) held by
Anhui Gujing Group Co., Ltd. has been approved bu voting without the attendance of the related
shareholders. After the completion of the assets replacement, the Company holds 100% equity of Shanghai
Gujing Jinhao Hotel Management Co., Ltd.
⑥ At the beginning of 2009, the cumulative effect of changes of retroactive adjustment is RMB
40,357,570.56, including the increased capital surplus is RMB 40,357,570.56.
VIII. Associated enterprise and joint enterprise
No associated enterprise and joint enterprise.
IX．Main items in consolidated financial statements
1. Monetary funds
Items
Ending book balance Beginning book balance
Foreign currency Exchange rate Standard currency Foreign currency Exchange rate Standard currency
Cash on hand
RMB 451,143.61 1.00 451,143.61 457,905.66 1.00 457,905.66
Subtotal 451,143.61 457,905.66
Bank deposit
RMB 222,415,836.68 1.00 222,415,836.68 278,204,804.30 1.00 278,204,804.30
USD 14,103.42 6.79 95,776.34 17,374.62 6.79 117,966.72安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
55
Compared to the beginning of the period, monetary funds decrease 20.02% at the end of the period,
which mainly attributed to the repayment of loans.
2. Notes receivable
(1) Notes receivable
(2) Notes endorsed to a third party but not due as for June 30, 2009
3. Accounts receivable
(1) Composition of accounts receivable
For the determination standard for significant single amount and non-significant single amount but
with high risk, please refer to Annex IV-6(5).
(2) Provision for bad debt of accounts receivable with significant single amount
Subtotal 222,511,613.02 278,322,771.02
Total 222,962,756.63 278,780,676.68
Items Ending book balance Beginning book balance
Bank acceptance - no pledge 77,887,523.86 110,369,921.69
Total 77,887,523.86 110,369,921.69
Note type Period Amount
Bank acceptance 2009.06.10—2009.12.28 111,089,269.00
Total 111,089,269.00
Items
Ending balance Beginning balance
Book balance Proportion %
Provision for
bad debts
Book value Book balance Proportion %
Provision for
bad debts
Book value
Significant single amount 9,776,146.11 22.48 97,761.46 9,678,384.65 10,566,286.59 25.82 105,662.87 10,460,623.72
Non-significant single amount
but with high risk 811,641.18 1.87 811,641.18 - 1,026,183.82 2.51 1,026,183.82 -
Other non-significant amounts 32,894,080.59 75.65 1,092,214.55 31,801,866.04 29,336,101.02 71.68 869,770.50 28,466,330.52
Total 43,481,867.88 100.00 2,001,617.19 41,480,250.69 40,928,571.43 100.00 2,001,617.19 38,926,954.24
Debtors
Amount of
arrear
Provision proportion
%
Reason
Anhui Ruijing Famous Wine
Trading Co., Ltd.
5,240,972.65
1
Provide the provision for bad debts
according to the bad debts policy of the
Company安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
56
(3) Account age analysis
(4) No account receivable shall be written off during the reporting period.
(5) Arrears of the shareholders who are holding more than 5% (including 5%) voting shares as of June
30, 2009:
(6) Top 5 accounts receivable
4. Advances to suppliers
Anhui Tianyun Commerce
and Trading Co., Ltd.
2,531,265.48
1
Provide the provision for bad debts
according to the bad debts policy of the
Company
Bozhou Gujing Liquor
Industry Co., Ltd.
2,003,907.98
1
Provide the provision for bad debts
according to the bad debts policy of the
Company
Total 9,776,146.11
Account age
Ending balance Beginning balance
Book balance
Proportion
%
Provision for bad
debts
Book value Book balance
Proportion
%
Provision for bad
debts
Book value
Within 1 year 40,952,671.15 94.18 832,983.05 40,119,688.10 37,543,134.99 91.73 546,007.54 36,997,127.45
1-2 years 1,254,462.03 2.89 125,446.20 1,129,015.83 1,875,501.21 4.58 187,550.12 1,687,951.09
2-3 years 463,093.52 1.07 231,546.76 231,546.76 483,751.41 1.18 241,875.71 241,875.70
More than 3
years 811,641.18 1.87 811,641.18 - 1,026,183.82 2.51 1,026,183.82 -
Total 43,481,867.88 100.00 2,001,617.19 41,480,250.69 40,928,571.43 100.00 2,001,617.19 38,926,954.24
Name of shareholder Ending book balance Beginning book balance
Gujing Group 48,695.00 55,835.00
Items
Ending balance Beginning balance
Amount Proportion % Amount Proportion %
Within 1 year 13,052,365.08 30.02 14,301,232.07 34.94
Total and proportion of top five
arrearage companies
13,052,365.08 30.02 14,301,232.07 34.94安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
57
(1) Account age analysis
(2) Advances to suppliers with large amount at the end of the period
(3) No prepayment of the shareholders who are holding more than 5% (including 5%) voting shares as
of June 30, 2009.
5. Other receivables
(1) Composition of other receivables
For the determination standard for significant single amount and non-significant single amount but with
high risk, please refer to Annex IV-6(5).
(2) Provision for bad debt of other receivables with significant single amount
Account age Ending balance Proportion % Beginning balance Proportion %
Within 1 year 4,901,333.10 100.00 8,578,537.17 100.00
Total 4,901,333.10 100.00 8,578,537.17 100.00
Debtors Amount Property or contents
Henan Xinshun Industry Co., Ltd. 376,279.20 Prepayment for materials
Linqu Tongji Packing Machinery Co.,
Ltd. 369,600.00 Prepayment for equipment
Shandong Jiafeng Glass Machinery Co.,
Ltd. 165,295.20 Prepayment for materials
Total 911,174.40
Items
Ending balance Beginning balance
Book balance
Proportion
%
Provision for
bad debts
Book value Book balance
Proportion
%
Provision for
bad debts
Book value
Significant single amount 77,075,000.00 92.24 74,981,150.00 2,093,850.00 78,742,138.16 83.90 75,125,019.20 3,617,118.96
Non-significant single
amount but with high risk 1,989,654.21 2.38 1,989,654.21 - 2,364,868.65 2.52 2,364,868.65 -
Other non-significant
amounts 4,493,589.46 5.38 3,240,230.52 1,253,358.94 12,745,451.92 13.58 2,721,146.88 10,024,305.04
Total 83,558,243.67 100.00 80,211,034.73 3,347,208.94 93,852,458.73 100.00 80,211,034.73 13,641,424.00
Debtors Amount of
arrear
Provision
proportion %
Reason
Hengxin Securities 30,000,000.00 100.00
Provide the provision for bad debts
according to the bad debts policy of the
Company
Minfa Securities 30,000,000.00 100.00
Provide the provision for bad debts
according to the bad debts policy of the
Company
Jianqiao Securities 14,960,000.00 100.00
Provide the provision for bad debts
according to the bad debts policy of the
Company安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
58
(3) Account age analysis
(4) Jianqiao Securities has entered into administrative liquidation in April 2006, whereas the payback
has large uncertainty, the Company provided the bad debt provision for the national debt investment
receivables of RMB 16 million and legal cost of RMB 1 million in 2006.
According to the first distribution scheme for bankruptcy properties published by Jianqiao Securities
on 28th Dec. 2007, the recoverable credit of the Company was RMB 2.04 million. RMB 2.04 million of
national debt investment receivables which subject to bad debt provision has been returned in 2007. As of
30th June 2009, the company has received the liquidation funds of RMB 2.04 million. The rest debts of
RMB 14.96 million may be unrecoverable.
(5) No arrear of the shareholders who are holding more than 5% (including 5%) voting shares as of
30th June 2009.
(6) Total amount of account receivables of top 5 is RMB 78,100,500.00, which is 93.47% of total
amount of other account receivables.
Hefei Bolue Cultural Communication
Co., Ltd.
2,115,000.00 1.00
Provide the provision for bad debts
according to the bad debts policy of the
Company
Total 77,075,000.00
Provide the provision for bad debts
according to the bad debts policy of the
Company
Account age
Ending balance Beginning balance
Book balance
Proportion
%
Provision for
bad debts
Book value Book balance
Proportion
%
Provision for
bad debts
Book value
Within 1 year 5,595,417.23 6.70 2,959,263.30 2,636,153.93 7,549,635.16 8.04 1,699,518.23 5,850,116.93
1-2 years 511,172.23 0.61 51,117.22 460,055.01 8,255,824.02 8.80 825,582.40 7,430,241.62
2-3 years 502,000.00 0.60 251,000.00 251,000.00 722,130.90 0.77 361,065.45 361,065.45
More than 3 years 76,949,654.21 92.09 76,949,654.21 - 77,324,868.65 82.39 77,324,868.65 -
Total 83,558,243.67 100.00 80,211,034.73 3,347,208.94 93,852,458.73 100.00 80,211,034.73 13,641,424.00
Debtors Amount Property or contents Year of arrears
Proportion
%
Hengxin Securities
30,000,000.00
National debt
investment
More than 3
years
35.90
Minfa Securities
30,000,000.00
National debt
investment
More than 3
years
35.90
Jianqiao Securities
14,960,000.00
National debt
investment
More than 3
years
17.90安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
59
6. Inventories
(1) Details
(2) Provision for depreciation of inventories
(3) Provision for inventories depreciation is accounted according to the difference between the book cost of
the inventories dated June 30, 2009 and the net realizable value. The net realizable value refers to the value
of estimated sales price deducting the estimated sale expenses and relevant tax during the normal
production. The current distribution of provision for inventories depreciation is caused by carrying forward
the delivered inventory.
7. Long-term equity investment
Hefei Bolue Cultural Communication
Co., Ltd.
2,115,000.00
Advertisement agent
fee
Within 1 year 2.53
Anhui Jinyang Media Advertising
Co.,Ltd.
1,025,500.00
Advertisement agent
fee
Within 1 year 1.23
Total 78,100,500.00 93.47
Items
Ending book balance Beginning book balance
Amount Price provision Net value Amount Price provision Net value
Material and packing 64,877,022.70 16,569,302.04 48,307,720.66 107,262,274.22 11,007,706.20 96,254,568.02
Self-made semi-finished products and
products in progress 287,530,335.13 287,530,335.13 302,628,477.80 20,492.31 302,607,985.49
Finished products 28,360,457.21 1,710,903.08 26,649,554.13 74,959,710.54 1,710,903.08 73,248,807.46
Total 380,767,815.04 18,280,205.12 362,487,609.92 484,850,462.56 12,739,101.59 472,111,360.97
Items
Beginning book
balance
Provision of
reporting period
Reporting period
returned
Reporting period
distributed
Ending book
balance
Proportion of returned
amount in ending balance of
inventory
Material and packing 11,007,706.20 5,561,595.84 16,569,302.04 0.00
Self-made semi-finished products and
products in progress 20,492.31 20,492.31 -
0.00
Finished products 1,710,903.08 1,710,903.08 0.00
Total 12,739,101.59 5,561,595.84 - 20,492.31 18,280,205.12安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
60
8. Investment real estate
(1) Subsequent measurement on cost mode
(2) No restriction to ownership of investment real estate as of June 30, 2009.
(3) At the end of the reporting period, the management of the Company considers that the investment
real estate has no material impairment.
9. Accumulated depreciation of fixed assets
(1) Classification
Items
Ending book balance Beginning book balance
Face balance
Provision for
devaluation
Face value Face balance
Provision for
devaluation
Face value
Cost method 0.00 0.00 0.00 0.00 0.00 0.00
Equity method 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00
Items
Beginning
book balance
Increase of
reporting
period
Decrease of
reporting
period
Ending book
balance
① Original price 48,867,342.45 48,867,342.45
a．House buildings 47,652,542.45 47,652,542.45
b．Land use right 1,214,800.00 1,214,800.00
② Accumulated depreciation and
amortization 18,796,421.96 1,206,065.00 20,002,486.96
a．House buildings 18,687,104.12 1,193,916.98 19,881,021.10
b．Land use right 109,317.84 12,148.02 121,465.86
③Provision for depreciation of investment
real estate
a．House buildings
b．Land use right
④ Book value of investment real estate 30,070,920.49 28,864,855.49
a．House buildings 28,965,438.33 27,771,521.35
b．Land use right 1,105,482.16 1,093,334.14
Items
Beginning book
balance
Increase of
reporting period
Decrease of
reporting period
Ending book
balance安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
61
(2) Among the increase of accumulative depreciation of fixed assets, the provided amount is RMB
26,951,954.83 during the reporting period.
(3) The fixed assets of RMB 7,675,976.71 have been transferred in after the completion of
construction in progress during the reporting period.
(4) Temporarily idle fixed assets
①Original price of fixed assets
1,054,877,627.
60 60,514,383.93 263,635,962.59 851,756,048.94
House buildings 568,028,309.32 15,682,110.30 57,298,394.85 526,412,024.77
Machine and equipment 373,666,507.34 41,331,965.30 181,991,337.15 233,007,135.49
Transportation equipment 25,488,254.27 2,371,361.32 2,471,699.08 25,387,916.51
Electronic equipment and other 87,694,556.67 1,128,947.01 21,874,531.51 66,948,972.17
②Accumulated deprecation 494,998,188.23 26,951,954.83 75,389,735.08 446,560,407.98
House buildings 249,903,952.14 13,139,979.69 13,553,341.09 249,490,590.74
Machine and equipment 179,496,220.32 10,383,203.11 52,200,989.17 137,678,434.26
Transportation equipment 12,935,159.48 1,233,857.30 1,345,029.65 12,823,987.13
Electronic equipment and other 52,662,856.29 2,194,914.73 8,290,375.17 46,567,395.85
③Accumulative amount of provision
for impairment of fixed assets 27,779.58 - - 27,779.58
House buildings - -
Machine and equipment 27,779.58 27,779.58
Transportation equipment - -
Electronic equipment and other - -
④Book value of fixed assets 559,851,659.79 405,167,861.38
House buildings 318,124,357.18 276,921,434.03
Machine and equipment 194,142,507.44 95,300,921.65
Transportation equipment 12,553,094.79 12,563,929.38
Electronic equipment and other 35,031,700.38 20,381,576.32
Items
Original fac
e value
Accumulate
d depreciatio
n
Provision for
devaluation
Net value
Reason
Estimated time
for putting into
service
Original price of fixed
assets:
House buildings
37,912,191.
28
30,682,497.
45
7,229,693.
83
No impairm
ent
Year 2009
Machine and equipment
10,605,373.
78
9,732,213.6
5
873,160.1
3 No impairm Year 2009安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
62
(5) Fixed assets to be disposed
According to the Law of Land Administration of the People's Republic of China, Law of the People's
Republic of China on Administration of Real Estate, Method for State-owned Land Reserve of Anhui and
Reply of Bozhou Peoples’ Government on 25th June 2008, through the mutual negotiation between Bozhou
Land Reserve Center (hereinafter refer to as “Reserve Center”) and Bozhou Gujing Printing Co., Ltd., as
per the Contract for Compensable Resumption of State-owned Construction Land Use Right concluded on
10th July 2008, the Reserve Center is provided to resume the state-owned construction land use right,
buildings and auxiliary buildings owned by Bozhou Gujing Printing Co., Ltd. which located at East Weiwu
Blvd., Bozhou. The land area is 27,611.6 m2 (equal to 41.4174 mu) and the area of buildings and auxiliary
buildings is 15,157.45 m2. The compensation paid by the Reserve Center is RMB 14,207,842.23, which
including land compensation of RMB 1,863,783.00 and buildings and auxiliary buildings compensation of
RMB 12,344,059.23 which is the appraisal price indicated in the appraisal report issued by Anhui Jiandi
Real Estate and Land Appraisal Co., Ltd. on 30th April 2008 and 12th May 2008. The compensation will be
paid to Bozhou Gujing Printing Co., Ltd. after the Reserve Center transferring the land and collecting all
transfer fees.
Due to the cancellation of Bozhou Gujing Printing Co., Ltd. the contract is inherited by the newly
combined Bozhou Parott Packing Product Co., Ltd. As of the reporting date, the Company has not received
the foresaid compensation. The risks and rewards of the foresaid assets have not been transferred.
(6) The Company has no fixed assets transferred from financing leases.
(7) Fixed assets rented out by operating lease
ent
Total
48,517,565.
06
40,414,711.1
0 -
8,102,853.
96
Name of assets
Original fac
e value
Accumulated depreciation
and amortization
Book val
ue
Predicted disposal
expenses
Predicted
disposal time
House buildings
1,382,424.1
5 434,399.58
948,024.5
7
Undetermined
Year 2009
Total
1,382,424.1
5 434,399.58
948,024.5
7
Items
Original face value
Accumulated
depreciation
Net value
Machine and equipment 6,289,517.39 4,176,095.73 2,113,421.66
Transportation equipment 624,520.00 563,726.74 60,793.26
Electronic equipment and 5,456,387.01 2,382,193.99 3,074,193.02安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
63
(8) Fixed assets without property right certificate
(9) Fixed assets for mortgage guarantee
10. Construction in progress
(1) Details of construction in progress
Details of construction in progress (continued)
other
Total 12,370,424.40 7,122,016.46 5,248,407.94
Items Original face value Accumulated depreciation Net value
House buildings 54,908,246.95 22,571,497.78 32,336,749.17
Total 54,908,246.95 22,571,497.78 32,336,749.17
Items Original face value Accumulated depreciation Net value
House buildings 177,854,311.38 35,232,947.63 142,621,363.75
Total 177,854,311.38 35,232,947.63 142,621,363.75
Name of projects
Beginning
book balance
Increase of
reporting
period
Transfer-in fixed
assets of
reporting period
Other
decrease
Ending book
balance
Wine pot project 60,000.00 60,000.00 -
Furuixiang flour project 40,251,482.32 13,904,708.80 54,156,191.12 -
Furuixiang thermoelectricity
project 23,949,529.98 5,899,480.50 29,849,010.48 -
35 ton boiler reconstruction project 6,998,527.61 100,000.00 7,098,527.61 -
Brewing industrial park 2,706,357.87 3,027,000.00 67,000.00 2,783,090.86 2,883,267.01
ERP system 1,232,791.50 40,068.00 1,272,859.50
Other projects 23,250.00 23,250.00 -
Technical transformation project of
glass company 1,142,230.99 487,199.10 655,031.89
Total 75,221,939.28 24,113,488.29 7,675,976.71 86,848,292.46 4,811,158.40
Name of project
Capitalized
borrowings in balance
at end of year
Project budget
Funds
source
Project investment/budget(%)
35 ton boiler reconstruction
project
0.00 7,550,000.00 Self financing 100.00
Brewing industrial park 0.00 5,500,000.00 Self financing 68.12
ERP system 0.00 4,100,000.00 Self financing 30.07
Total 0.00 17,150,000.00安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
64
(2) Compared to the beginning of the period, constructions in progress decrease 93.60% at the end of
the period, which mainly attributed to the replacement of assets.
(3) At the end of the reporting period, the management of the Company considers that the construction
in progress has no material impairment.
11. Construction materials
12. Intangible assets and accumulated amortization
(1) Intangible assets
(2) Compared to the beginning of the period, intangible assets decrease 31.55% at the end of the
period, which mainly attributed to the decrease of land use right caused by the replacement of assets.
Name of materials Ending book balance Beginning book balance
Special materials 115,261.62 8,000.00
Special equipment 0.00 1,286,344.98
Total 115,261.62 1,294,344.98
Items
Beginning book
balance
Increase of
reporting
period
Decrease of
reporting
period
Ending book
balance
① Original price 192,031,234.91 42,287,929.01 149,743,305.90
a. Land use right 153,731,234.91 42,137,929.01 111,593,305.90
b. Trademark right 38,300,000.00 150,000.00 38,150,000.00
② Accumulated amortization 55,928,913.82 1,561,601.85 913,136.55 56,577,379.12
a. Land use right 18,176,413.82 1,526,601.85 885,636.55 18,817,379.12
b. Trademark right 37,752,500.00 35,000.00 27,500.00 37,760,000.00
③ Impairment provision of
intangible assets
a. Land use right
b. Trademark right
④ Book value of intangible assets 136,102,321.09 93,165,926.78
a. Land use right 135,554,821.09 92,775,926.78
b. Trademark right 547,500.00 390,000.00安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
65
(3) Assets with restrained ownership
(4) Intangible assets to be disposed
(5) At the end of the reporting period, the management of the Company considers that the intangible
assets have no material impairment.
13. Long-term prepayments
14. Deferred income tax asset
(1) Confirmed deferred income tax assets
(2) The Company confirms the deferred income tax assets according to the taxable income which may
be obtained in the future to write off the temporary difference deductible.
15. Provision for asset impairment
Items Original face value Accumulated depreciation Net value
Land use rights 49,410,251.40 9,373,637.69 40,036,613.71
Total 49,410,251.40 9,373,637.69 40,036,613.71
Name of assets Original face value
Accumulated
depreciation and
amortization
Face value
Predicted disposal
expenses
Predicted
disposal time
Land use rights 7,678,872.00 604,910.51
7,073,961.4
9 Undetermined Year 2009
Total 7,678,872.00 604,910.51
7,073,961.4
9
Items Ending book value Beginning book value
Decoration fee 2,119,445.93 2,372,932.77
Total 2,119,445.93 2,372,932.77
Item
Temporary difference deductible Deferred income tax asset
Ending balance Beginning balance Ending book balance
Beginning book
balance
Provision for bad debts 5,061,354.28 5,061,354.28 909,325.55 1,265,338.57
Provision for depreciation of
inventories 1,309,475.14 1,309,475.14 327,368.78 327,368.78
Provision for impairment of
fixed assets 27,779.58 27,779.58 6,944.90 6,944.90
Total 6,398,609.00 6,398,609.00 1,243,639.23 1,599,652.25
Items
Beginning book
balance
Increase of
reporting peri
Decrease of reporting period Ending book
Returned Distributed balance安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
66
16. Assets with restrained ownership
(1) Assets with restrained ownership
(2) For the Assets with restrained ownership cause by other reasons, please refer to Annex IX (5).
17. Short-term borrowings
(1) Type of short-term borrowings
(2) No due loan at end of period.
18. Account payable
od
Provision for bad debts 82,212,651.92 82,212,651.92
Provision for depreciation of
inventories 12,739,101.59 5,561,595.84 20,492.31 18,280,205.12
Provision for impairment of
fixed assets 27,779.58 27,779.58
Total 94,979,533.09 5,561,595.84 20,492.31 100,520,636.62
Items
Beginning book
value
Increase of
reporting period
Decrease of
reporting period
Ending book
value
① Assets for guarantee
House buildings 15,161,033.45 142,621,363.75 15,161,033.45 142,621,363.75
Land use right 41,504,689.05 1,468,075.34 40,036,613.71
Subtotal 56,665,722.50 142,621,363.75 16,629,108.79 182,657,977.46
② Assets with restrained ownership cause
by other reasons 0
House buildings 982,585.17 34,560.60 948,024.57
Land use right 7,150,750.21 76,788.72 7,073,961.49
Subtotal 8,133,335.38 111,349.32 8,021,986.06
Total 64,799,057.88 142,621,363.75 16,740,458.11 190,679,963.52
Type Ending book balance Beginning book balance
Mortgage 10,000,000.00 45,000,000.00
Warranty 30,000,000.00
Total 10,000,000.00 75,000,000.00安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
67
(1) Account age
(2) No arrear for the shareholders who are holding more than 5% (including 5%) voting shares as of
June 30, 2009.
(3) Compared to the beginning of the period, balance of account payable decrease 32.31% at the end
of the period, which mainly attributed to the payment for arrears of purchasing materials.
(4) Please refer to Annex XI 3 (3) for amount payable to interested party.
19. Advances from customers
(1) Account age
(2) No amount of the shareholders who are holding more than 5% (including 5%) voting shares as of
June 30, 2009.
20. Payroll payable
Account age Ending book balance Beginning book balance
Within 1 year 73,518,674.47 109,290,959.19
More than 1 year 873,223.17 607,304.54
Total 74,391,897.64 109,898,263.73
Account age Ending book balance Beginning book balance
Within 1 year 81,792,512.52 52,081,187.80
More than 1 year 6,339,033.35 6,270,453.89
Total 88,131,545.87 58,351,641.69
Items
Beginning book
balance
Increase of reporti
ng period
Payment of reporti
ng period
Ending book
balance
Wage, bonus and allowance 65,211,853.53 67,419,261.48 90,516,137.93 42,114,977.08
Welfare 5,646,145.04 5,646,145.04
Social insurance 32,452,904.74 13,339,976.12 6,705,922.17 39,086,958.69
Including: medical insurance 7,055,248.09 1,904,005.82 2,244,475.57 6,714,778.34
Basic endowment insurance 24,468,575.14 10,012,608.65 4,169,860.72 30,311,323.07
Annual fee
Unemployment insurance 266,414.64 515,693.08 176,048.84 606,058.88
Industrial injury insurance 616,824.02 443,557.44 62,834.89 997,546.57
Birth insurance 45,842.85 464,111.13 52,702.15 457,251.83安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
68
21. Tax payable
22. Other payables
(1) Account age
Compared to the beginning of the period, other payables decrease 19.43% at the end of the period,
which mainly attributed to the payment for arrears.
(2) Details for other payables with an age over one year
House reserves 1,409,384.53 2,910,888.22 2,553,476.46 1,766,796.29
Labor fee and employee
education fee 5,101,945.15 1,869,181.62 694,141.31 6,276,985.46
Non-monetary welfare 1,493,032.83 1,493,032.83
Compensation for cancellation
of employment 4,279,534.35 2,292,423.57 1,987,110.78
Others
Including: Stock payment settled in
cash
Total 108,455,622.30 92,678,485.31 109,901,279.31 91,232,828.30
Type Ending book balance Beginning book balance
Value added tax 12,208,798.60 20,692,904.98
Consumption tax 62,345,536.52 77,985,456.85
Business tax 437,829.86 589,910.68
Urban construction fee 1,981,981.40 1,890,804.27
Enterprise income tax 38,399,319.46 58,138,169.78
House property tax 43,704.20 29,140.12
Individual income tax 51,413.94 186,529.60
Stamp tax 0.00 207,126.28
Education surcharge 1,050,504.95 1,364,951.87
Others 16605.57 542,087.75
Total 116,535,694.50 161,627,082.18
Account age Ending book balance Beginning book balance
Within 1 year 86,191,034.39 102,186,223.01
More than 1 year 10,688,618.23 18,054,596.30
Total 96,879,652.62 120,240,819.31安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
69
(3) The amount owned to the shareholders holding not less than 5% of the voting right shares as of
June 30, 2009 are as follows:
23. Non-current liabilities due in one year
(1) Type
(2) There is no borrowing due as of June 30, 2009.
24. Long-term borrowings
(1) There is no long-term borrowing due as of June 30, 2009.
(2) Please refer to Annex IX (16) for hostages of the long-term borrowing.
25. Deferred incomes
Name of company Arrears Account age Reason
Repaid amount after the date
of balance sheet
Anhui Anzhen
Investment Co., Ltd
5,000,000.00 More than 3 years
Creditor cannot be c
ontacted
0.00
Total 5,000,000.00
Name of shareholders Arrears Account age Proportion Reason
Gujing Group 577,733.67 Within 2 years 0.60% Amount for fund transfers
Items Ending book balance Beginning book balance
Long-term borrowings due in
one year
10,000,000.00 11,000,000.00
Total 10,000,000.00 11,000,000.00
Loan provider
Currency
Condition
Ending book
balance
Beginning
book balance
Annual
rate
Term
Construction Bank of
China Bozhou Branch
RMB
Mortgage
0.00 5,000,000.00 5.85 2005.3.31—2010.3.30
Construction Bank of
China Bozhou Branch
RMB
Mortgage
0.00 20,000,000.00 6.93 2007.5.29—2012.5.28
Agricultural Bank of
China Putuo Shanghai
Branch
RMB
Mortgage
66,000,000.00 126,000,000.00 6.73 2005.10.31-2014.10.30
Total 66,000,000.00 151,000,000.00
Items Total amount of Approval documents Beginning Increase of Decrease of Ending book安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
70
(1) The decrease of deferred incomes is attributed to the assets replacement.
26. Capital stock
allowance book balance reporting period
reporting
period
balance
Energy saving reform project
of coal industrial boiler and
glass stove
2,550,000.00 FGHZ (2007) No.
2500
1,530,000.00
1,530,000.00
Regulation project of organic
waste water
6,000,000.00
CJ [2007] No. 1476
6,000,000.00
6,000,000.0
0 -
Comprehensive
reconstruction of sewage
treatment
2,400,000.00
CJ [2008] No. 925
2,400,000.00
2,400,000.0
0 -
Total 10,950,000.00 9,930,000.00
8,400,000.0
0
1,530,000.00
Items
Increase/decrease in reporting period Unit: shares
Beginning book
balance
Amount
of share
offering
Bonus
Share
Accumulatio
n funds-to-e
quity
Remove restriction Others Subtotal
Ending book
balance
I. Nonnegotiable shares
1.Initail shareholder’s shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Including: State-owned shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Domestic corporate shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Overseas corporate shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
I. Nonnegotiable shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
②Raised shares held by
legal person
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
③ Employee shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
④Preferential shares or
others
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Including: transfer right
share
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Subtotal of nonnegotiable
shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
71
(1) The book value of the above shares per share is RMB 1 yuan. There is no change in total amount of
the capital stock in the reporting period.
(2) The Company issued the Notice of Anhui Gujing Distillery Company Limited on the Release of Share
Restriction on 24 July, 2007. The 123.50 million restricted shares are released for listing and trading, and
the release date for the listing and trading of restricted shares is 29 July, 2009.
27. Capital surplus
The decrease of capital surplus in the reporting period is mainly attributed to the assets replacement.
The capital surplus shall be adjusted according to the balance between the book value of net assets caused
by the combination under the same control and the paid combined sum of consideration (or total par value
of shares) as per the new accounting standards. For the capital surplus cannot be reduced, the retained
earnings shall be adjusted.
28. Surplus reserve
(2) Negotiable shares
Domestic listed RMB
common shares
51,497,900.00 - - - 123,500,000.00 - 123,500,000.00 174,997,900.00
Including: executive
stock
Domestic listed foreign shares 60,000,000.00 - - - - - - 60,000,000.00
Total of negotiable shares 111,497,900.00 - - - 123,500,000.00 - 123,500,000.00 234,997,900.00
(3) Negotiable shares without
restriction
123,502,100.00 - - -
-
123,500,000.00
-
-
123,500,000.00
2,100.00
(4) Total amount of shares 235,000,000.00 - - - - - - 235,000,000.0
0
Type
Beginning book
balance
Increase of reporting
period
Decrease of reporting
period
Ending book balance
Capital stock
premiums 550,379,486.12 265,120,205.14 285,259,280.98
Other capital surplus 22,469,753.14 22,469,753.14
Total 572,849,239.26 - 265,120,205.14 307,729,034.12
Type
Beginning book
balance
Increase of reporting
period
Decrease of reporting
period
Ending book balance
Legal surplus reserve 52,283,759.34 0.00 0.00 52,283,759.34
Total 52,283,759.34 0.00 0.00 52,283,759.34安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
72
29. Undistributed profits
30. Minority shareholders' equity
31. Revenue and cost of operations
(1) Revenue of operations
Items Amount of reporting period Amount of previous year
Undistributed profits at the beginning of the
period
60,135,327.85 25,558,460.48
Add: profits transferred in during reporting
period
35,609,194.93 34,576,867.37
Other transfer-in 0.00
Less: legal surplus reserve 0.00
Bonus and welfare fund for employees 0.00
Reserve fund 0.00
Enterprise development fund 0.00
Profits refunded to investment 0.00
Less: priority stock dividend payable 0.00
Any surplus reserves 0.00
Common share dividend payable 0.00
Common share dividend transferred as
capital
0.00
Undistributed profits at the end of period 95,744,522.78 60,135,327.85
Name of minority shareholders
Beginning book
balance
Increase of reportin
g period
Decrease of report
ing period
Ending book
balance
Anhui VISTA Commerce and Tourism
(Group) Co., Ltd.
1,084,828.43 -45,331.2 0.00 1,039,497.23
Gujing Group 2,043,608.72 -9,661.74 0.00 2,033,946.98
Total 3,128,437.15 -54,992.94 0.00 3,073,444.21
Items
Amount of reporting perio
d
Year-on-year amount
Revenue from main operation 680,625,493.12 674,031,846.50
Revenue from other operations 24,651,800.93 9,555,631.91安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
73
(2) Cost of operations
(3) Main operation by operation type or products
(4) Operation by regions:
Total 705,277,294.05 683,587,478.41
Items
Amount of reporting perio
d
Year-on-year amount
Cost of main operation 319,763,354.56 429,105,752.40
Cost of other operations 23,573,894.42 8,841,642.52
Total 343,337,248.98 437,947,394.92
Product or type
Amount of reporting period Year-on-year amount
Revenue from opera
tions
Cost of operations Profits from oper
ations
Revenue from op
erations
Cost of operations Profits from opera
tions
Main operations
Spirit and alcohol 559,283,438.04 239,970,270.36 319,313,167.68 400,471,188.03 211,184,521.70 189,286,666.33
Deep processing of
agricultural products 21,135,993.05 20,856,927.53 279,065.52 185,410,058.25 161,561,631.84 23,848,426.41
Others 100,206,062.03 58,936,156.67 41,269,905.36 88,150,600.22 56,359,598.86 31,791,001.36
Subtotal of main
operations 680,625,493.12 319,763,354.56 360,862,138.56 674,031,846.50 429,105,752.40 244,926,094.10
Other operations - - -
Sale of material
19,632,930.09 19,517,429.20 115,500.89 4,223,672.19 3,842,629.32 381,042.87
Lease
4,621,176.00 3,249,064.10 1,372,111.90 274,947.81 215,348.38 59,599.43
Sale of waste
- 1,260,917.97 56,151.48 1,204,766.49
Sale of water, electricity
and gas 397,694.84 807,401.12 -409,706.28 3,403,149.49 4,472,684.28 -1,069,534.79
Others - 392,944.45 254,829.06 138,115.39
Subtotal of other
operations
24,651,800.93 23,573,894.42 1,077,906.51 9,555,631.91 8,841,642.52 713,989.39
Total 705,277,294.05 343,337,248.98 361,940,045.07 683,587,478.41 437,947,394.92 245,640,083.49
Items
Amount of reporting period Year-on-year amount
Cost of operations Profits from operations Cost of operations Profits from operations Cost of operations Profits from operations
North China 35,551,399.68 21,833,128.04 13,718,271.64 90,604,689.96 53,995,274.84 36,609,415.12
Central China 578,003,465.55 268,161,807.94 309,841,657.61 459,772,730.78 297,115,779.47 162,656,951.31
South China 64,404,083.00 27,304,542.00 37,099,541.00 92,700,010.19 55,243,967.30 37,456,042.89安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
74
(5) Revenue from sales to top 5 customers
32. Business tax and surcharges
(1) Details
(2) Please refer to Annex VI for basis and proportion of calculation and payment of business tax and
surcharges.
33. Sales and administrative expenses
The sales expenses in the reporting period increases 64.61% compared to the previous three years, which
mainly attributed to the consolidation for integration of prophase products and adjustment of product structure
and the increase of advertisement expenses.
The administrative expenses of the year increase 12.19% year-on-year which mainly attributed to the
assets replacement and new accounting standards. Changes of combination scope of the company cause the
increase of year-on-year administrative expenses.
34. Financial expenses
Other 2,666,544.89 2,463,876.58 202,668.31 30,954,415.57 22,750,730.79 8,203,684.78
Total 680,625,493.12 319,763,354.56 360,862,138.56 674,031,846.50 429,105,752.40 244,926,094.10
Name of customers
Amount of reporting period Year-on-year amount
Sales volume
Proportion in total operation r
evenue %
Sales volume
Proportion in total operation rev
enue %
Total amount of revenue
from sales to top 5
customers
134,225,865.80 19.03 64,276,951.23 9.40
Items Tax rate Amount of reporting period Year-on-year amount
Consumption tax 81,781,235.50 63,097,440.52
Business tax 1,841,697.15 294,730.17
Urban construction and
education surcharge 17,273,819.45 11,943,911.45
Total 100,896,752.10 75,336,082.14
Items Amount of reporting period Year-on-year amount
Interest expenses 6,020,440.26 3,686,769.01安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
75
35. Losses from impairment of asset
36. Investment income
37. Non-operation revenue
(1) Details
(2) The non-operation revenue decreases 32.07% year-on-year, which mainly attributed to the disposal of
decrease of non-current assets.
38. Non-operating expenses
Less: revenue from interest 921,773.41 684,036.24
Profit/loss from exchange 6,521.00 7,535.41
Bank service fee 18,675.00 22,162.79
Total 5,123,862.85 3,032,430.97
Items Amount of reporting period Year-on-year amount
Losses from bad debts
Losses from depreciation of inventories 5,541,103.53 -1,767,305.30
Losses from impairment of fixed asset
合计5,541,103.53 -1,767,305.30
Source of production and investment income Amount of reporting period Year-on-year amount
Income from disposal of subsidiaries 0.00 0.00
Total 0.00 0.00
Items Amount of reporting period Year-on-year amount
Total income from disposal of non-current
assets 164,833.34 1,756,893.42
Including: income from disposal of fixed
assets 164,833.34 415,135.51
Allowance by government 530,610.07 ——
Income from penalty 858,477.31 1,301,827.76
Others 1,521,936.85 1,469,247.54
Total 3,075,857.57 4,527,968.72
Items Amount of reporting period Year-on-year amount安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
76
39. Expenses for income tax
The expenses for income tax increase 48.71% year-on-year, which mainly attributed to the increase of total
profits of the Company during the reporting period.
40. Net profits after deducting irregular profit/loss
Total lose from disposal of non-current assets 301,334.06 195,255.58
Including: lose from disposal of fixed assets 301,334.06 54,307.60
Expense for penalty 79,564.32
Lose from depreciation
Expense for penalty
Others 127,116.36 140,315.61
Total 428,450.42 415,135.51
Items Amount of reporting period Year-on-year amount
All expenses for income tax of current
period 15,972,471.77 10,740,629.23
Expenses for deferred income tax
Total 15,972,471.77 10,740,629.23
Items
Amount of reportin
g period
Year-on-year amoun
t
Net profits 35,554,201.99 18,236,320.61
Add: (1) profit/loss from disposal of non-current assets, including the write off
of provision for assets impairment
(2) Unauthorized approval, informal approved files, or incidental return
and exemption of taxes
(3) Governmental subsidies recorded into the current profits and losses,
except the governmental subsidies which closely related to normal operations
of the Company, comply with provisions of national policies, and determined
according to certain standards
(4) Fund possession cost collected from non-financial enterprises which
recorded into the current profits and losses
(5) Profits caused by the difference between the investment cost
obtained from subsidiaries, associated enterprise, joint enterprises and fair
value of the identifiable net assets from the investing companies安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
77
Items
Amount of reportin
g period
Year-on-year amoun
t
(6) Profits and losses of non-monetary assets exchange
(7) Profits and losses of assets invested or managed by others
(8) Provision for assets impairment caused by force majeure such as
natural disasters
(9) Profits and losses of debt restructuring
(10) Expenses for enterprise reorganization, such as expenditure of
employee reallocation, integration expenses etc.
(11) Profits and losses of part excesses fair value which caused by the
transaction with unfair price
(12) Net profits and losses of the current period which from the
beginning of the period to combination date of the subsidiary established by
the combination of enterprises under the same control
(13) Profits and losses of contingencies which unrelated to the normal
operations of the Company
(14) Changeable profits and losses of fair value caused by transaction
financial assets and transaction financial liabilities, and investment profit
obtained from the disposal of transaction financial assets and transaction
financial liabilities and salable financial assets, except the effective hedging
related to the normal operations of the Company
(15) Reversal of provision for account receivables impairment which
separately subject to the impairment testing
(16) Profits and losses of obtained from the outside entrusted loans
(17) Profits and losses caused by changes of fair value of investment real
estate which subject to the sequent measurement by the mode of fair value
(18) Influence on the current profits and losses caused by the adjustment
to current profits and losses according to tax and accounting laws and
regulations
(19) Income of custodian fee obtained from trust operation
(20) Other non-operation income and expenditure -2,647,407.15 -4,112,833.21
(21) Balance of welfare funds reversed at the end of period according to
the new accounting standards
(22) Profits and losses comply with other non-operation profits and安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
78
41. Other cash receipts relating to operating activates
42. Other cash expenses relating to operating activities
43. Supplementary of cash flow statement
Items
Amount of reportin
g period
Year-on-year amoun
t
losses
Subtotal 32,906,794.84 14,123,487.40
Less: Influences of income tax of irregular profits and losses
Net profit after deducting irregular profits and losses 32,906,794.84 14,123,487.40
Less: Net profit after deducting irregular profits and losses attributed to
minority shareholders -54,992.94 -12,668.75
Net profit after deducting irregular profits and losses attributed to shareholders
of parent company 32,961,787.78 14,136,156.15
Items Amount of reporting period
Deposit 9,692,708.95
Others 9,166,385.96
Total 18,859,094.91
Items Amount of reporting period
Travel fee 8,325,958.98
Deposit 3,356,029.77
Transportation fee 6,431,589.72
Total 18,113,578.47
1. Regulate net profits to cash flow of operation activities: Amount of reporting period Year-on-year amount
Net profit 35,554,201.99 18,236,320.61
Add: provision for asset devaluation —— ——
Depreciation of fixed assets, oil/gas assets and productive bioassets
28,145,871.81 28,359,129.31
Amortization of intangible assets 1,573,749.87 786,385.46
Amortization of long-term prepayments 278,236.74 185,101.32
Profit/loss from disposal of fixed assets, intangible assets and 48,886.17 -75,349.87安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
79
44. Cash and cash equivalent
X. Notes related to financial statements of the parent company
other long-term assets
Profit/loss from scrapping of fixed assets 300,932.78 -444,690.16
Profit/loss from change in fair value —— ——
Profit/loss in financial expenses 4,769,859.41 3,955,575.77
Profit/loss from investment —— ——
Increase/decrease of deferred income tax 356,013.02 283,747.67
Increase/decrease of liabilities of deferred income tax —— ——
Increase/decrease of inventories 109,623,751.05 24,906,220.74
Increase/decrease of operating receivables 43,900,520.51 -82,867,024.91
Increase/decrease of operating payables -72,571,574.25 41,757,410.52
Net profit/loss from reorganization of debts —— ——
Others 151,980,449.10 35,082,826.46
Net value of cash flow from operating activities
2. Significant investment and financing activities not relating to
cash transaction:
Debt to capital —— ——
Company bonds exchangeable due in one year —— ——
Leased fixed assets from financing —— ——
2. Change in cash and cash equivalent: 222,962,756.63 166,370,369.33
End balance of cash 278,780,676.68 154,708,705.75
Less: beg. balance of cash
Add：end balance of cash equivalent —— ——
Add: beg. Balance of cash equivalent -55,817,920.05 11,661,663.58
Items Amount of reporting period Year-on-year amount
I. Cash
Including: cash on hand 451,143.61 105,564.89
Bank deposits can be used for payment at any time 222,511,613.02 166,264,804.44
II. Cash equivalent
Including: bond investment due in three months
III. Balance of cash and cash equivalent at the end of period 222,962,756.63 166,370,369.33安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
80
1. Account receivable
Composition of account receivable
(2) Account age analysis
(3) No arrears of the shareholders who are holding more than 5% (including 5%) voting shares as of June
30, 2009
(4) Top 5 accounts receivable
2. Other receivables
(1) Composition of other receivables
Items
Beginning balance Ending balance
Book
balance
Proportion Provision for
bad debts
Book value Book balance
Proportion Provision for bad deb
ts
Book value
Significant single amount 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Non-significant single amount but
with high risk
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other non-significant amounts 123,831.00 100.00 3,452.62 120,378.38 153,831.00 100.00 3,452.62 150,378.38
Total 123,831.00 100.00 3,452.62 120,378.38 153,831.00 100.00 3,452.62 150,378.38
Account age
Ending balance Beginning balance
Book balance
Proportion
%
Provision for
bad debts
Book value Book balance
Proportion
%
Provision for
bad debts
Book value
Within 1
year 123,831.00 100.00 3,452.62 120,378.38
149,131.00 96.94 2,982.62 146,148.38
1-2 years 0.00 0.00 0.00 0.00 4,700.00 3.06 470.00 4,230.00
2-3 years 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 123,831.00 100.00 3,452.62 120,378.38 153,831.00 100.00 3,452.62 150,378.38
Items
Ending balance Beginning balance
Amount Proportion % Amount Proportion %
Within 1 year 123,831.00 100.00 149,131.00 96.94
1-2 years 0.00 0.00 4,700.00 3.06
Total and proportion of top five
arrearage companies
123,831.00 100.00 153,831.00 100.00
Items
Ending balance Beginning balance
Book balance
Proportion
%
Book balance Proportion % Book balance
Proportion
%
Book balance Proportion %安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
81
(2) Provision for other receivables with significant single amount
（3）Account age analysis
(4) Provision for bad debts of full amount of the past years of Jianqiao securities is adopted. The
Company has received the returned provision for bad debts of RMB 2,040,000.00 of the past years
according to the liquidation. Please refer to Note IX 5 (4) for more details.
(5) No arrears of the shareholders who are holding more than 5% (including 5%) voting shares as of
Significant single
amount 74,960,000.00 42.66 74,960,000.00 0.00
74,960,000.00 64.21 74,960,000.00 0.00
Non-significant single
amount but with high
risk
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other non-significant
amounts 100,748,943.20 57.34 736,834.05 100,012,109.15
41,789,129.73 35.79 736,834.05 41,052,295.68
Total 175,708,943.20 100.00 75,696,834.05 100,012,109.15 116,749,129.73 100.00 75,696,834.05 41,052,295.68
Debtors Amount Proportion of provision
for bad debts
Reason
Hengxin Securities
30,000,000.00 100.00
Provision for bad debts according to
the bad debt policy of the company
Minfa Securities
30,000,000.00 100.00
Provision for bad debts according to
the bad debt policy of the company
Jianqiao Securities
14,960,000.00 100.00
Provision for bad debts according to
the bad debt policy of the company
Total 74,960,000.00
Account age
Ending balance Beginning balance
Book balance
Proportion
%
Book balance Proportion % Book balance
Proportion
%
Book balance Proportion %
Within 1 year 100,748,943.20 57.34 736,834.05 100,012,109.15 41,785,869.73 35.79 735,708.05 41,050,161.68
1-2 years 0.00 0.00 0.00 0.00 1,260.00 0.00 126.00 1,134.00
2-3 years 0.00 0.00 0.00 0.00 2,000.00 0.00 1,000.00 1,000.00
More than 3
years 74,960,000.00 42.66 74,960,000.00 0.00
74,960,000.00 64.21 74,960,000.00 0.00
Total 175,708,943.20 100.00 75,696,834.05 100,012,109.15 116,749,129.73 100.00 75,696,834.05 41,052,295.68安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
82
June 30, 2009
(6) Total amount of account receivable of top 5 is RMB 7.741 million, which is 44.05% of the total
other accounts receivable.
3. Long-term stock equity investment
(1) Long-term stock equity investment and provision for impairment
(2) Long-term stock equity investment calculated by cost method
Items
Ending book balance Beginning book balance
Book balance
Provision for
impairment
Book value Book balance
Provision for
impairment
Book value
Long-term stock equity
investment
306,976,503.54 0.00 306,976,503.54 536,185,003.12 0.00 536,185,003.12
Including: investment to
subsidiaries
306,976,503.54 0.00 306,976,503.54 536,185,003.12 0.00 536,185,003.12
Name of invested companies Beg. amount Beginning book
balance
Increase of
reporting year
Decrease of
reporting year
Ending book
balance
①Subsidiaries
Bozhou Gujing Trading Co. Ltd 84,428,042.21 84,428,042.21 84,428,042.21
Bozhou Gujing Vehicle
Transportation Co., Ltd 6,875,743.00 6,875,743.00 6,875,743.00
Bozhou Gujing Glass Products Co.,
Ltd 65,795,666.00 65,795,666.00 65,795,666.00
Anhui Laobada Distillery Co., Ltd 28,000,000.00 28,000,000.00 28,000,000.00
Bozhou Parott Packing Product Co.,
Ltd. 49,900,000.00 49,900,000.00 49,900,000.00
Shanghai Gujing Trading Co., Ltd 9,900,000.00 9,900,000.00 9,900,000.00
Anhui Ruifuxiang Food Co., Ltd 265,113,634.51 265,113,634.51 265,113,634.51 -
Hefei Gujing Trading Co., Ltd 9,900,000.00 9,900,000.00 9,900,000.00
Bozhou Gujing Hotel Co., Ltd 16,271,917.40 16,271,917.40 16,271,917.40
Shanghai Gujing Jinhao Hotel
Management Co., Ltd. 35,905,134.93 35,905,134.93安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
83
(3)The executive staff believes there is no significant impairement of the long-term stock equity
investment and the end of the period.
4. Revenue and cost of operations
(1) Revenue from operations
(2) Cost of operations
(3) Main operation by operation type or products
(4) Revenue from sales to top 5 customers
Total 536,185,003.12 536,185,003.12 35,905,134.93 265,113,634.51 306,976,503.54
Items Amount of reporting period Year-on-year amount
Revenue from main operation 351,259,046.09 270,347,500.08
Revenue from other operations 25,914,572.08 7,917,486.73
Total 377,173,618.17 278,264,986.81
Items Amount of reporting period Year-on-year amount
Cost of main operation 194,118,226.61 228,259,701.82
Cost of other operations 27,057,325.17 8,111,897.89
Total 221,175,551.78 236,371,599.71
Product or type
Amount of reporting period Year-on-year amount
Revenue from oper
ations
Cost of operations Revenue from oper
ations
Cost of operations Revenue from oper
ations
Cost of operations
Main operations
Spirit and alcohol 339,333,436.19 184,276,908.07 155,056,528.12 235,182,594.64 194,904,689.43 40,277,905.21
Others 5,962,804.95 4,920,659.27 1,042,145.68 35,164,905.44 33,355,012.39 1,809,893.05
Other operations
Sale of material 16,160,611.29 18,957,164.32 -2,796,553.03 4,036,692.44 3,410,181.76 626,510.68
Sale of water,
electricity and gas 3,822,049.85 4,276,704.81 -454,654.96 3,403,149.49 4,472,684.28 -1,069,534.79
Others 7,894,715.89 5,351,330.20 2,543,385.69 477,644.80 229,031.85 248,612.95
Lease 4,000,000.00 3,392,785.11 607,214.89
Total 377,173,618.17 221,175,551.78 155,998,066.39 278,264,986.81 236,371,599.71 41,893,387.10
Name of customers Amount of reporting period Year-on-year amount安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
84
5. Investment income
(1) Listed by source of production and investment income
VI. Relation with interested parties and their transactions
1. Standard for determination of interested parties
A party that is controlled, jointly controlled and greatly influenced by the Company, or can control,
jointly control and greatly influence the Company; or another enterprise that is controlled, jointly
controlled or greatly influenced by the same party will be determined as the interested party of the
Company.
2. Relation with interested parties
(1) Interested party with control relation
① Parent company of the Company
The ultimate controller of the Company is Peoples’ Government of Bozhou, Anhui.
② Subsidiaries of the Company
Please refer to Note VII 1 for information of subsidiaries.
(2) Interested party without control relationship
Sales volume
Proportion in total operatio
n revenue %
Sales volume
Proportion in total opera
tion revenue %
Total amount of revenue from
sales to top 5 customers
344,704,478.62 91.39
245,031,525.64 88,06
Source of production and investment income Amount of reporting period Year-on-year amount
Returned profits of subsidiaries 35,565,558.18 75,808,739.26
Income from disposal of subsidiaries -15,241,560.45
Total 20,323,997.73 75,808,739.26
Company name
Registration
No.
Registered
Address
Business property Registered
capital
Shareholding
proportion
Voting
right
proportion
Gujing Group 151947437 Bozhou,
Anhui
Manufacturing of drink,
construction material and
plastic products
353,380,000.00 61.15 61.15%
Company name Registration No. Relation with the Company
Anhui Gujing Comprehensive Service
Company
151940040 Under the same direct controlling
shareholder
Bozhou Zhenli Hengbao Co., Ltd
71395940-6 Under the same direct controlling
shareholder
Gujing Tianshi Printing Co., Ltd
71395908-6 Under the same direct controlling
shareholder安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
85
3. Trading of interested parties
(2) Principle for determine transaction price with interested parties: the transaction price is
implemented according to the contract price which is determined by the management of the
Company according to the market price.
(3) Interested party transaction
① Goods on sale
Gujing Jiufang Pharmaceuticals Co., Ltd
15194598-4 Under the same direct controlling
shareholder
Anhui VISTA Commerce and Tourism
(Group) Co., Ltd.
14912443-1 Under the same direct controlling
shareholder
Shanghai Gujing Jinhao Real Estate
Development Co., Ltd
134565998 Under the same direct controlling
shareholder
Boshou Gujing Thermal Power Co., Ltd
15194236-1 Under the same direct controlling
shareholder
Anhui Ruijing Famous Wine Trading Co.,
Ltd
667916375 Under the same direct controlling
shareholder
Bozhou Gujing Guest House Co., Ltd 15194483-4 Under the same direct controlling
shareholder
Anhui Jinyang Media Advertising Co.,Ltd. 705048960 Under the same direct controlling
shareholder
Bozhou Gujing Workers’ Hospital 777376154 Under the same direct controlling
shareholder
Name of interested parties
Reporting period Year-on-year 2008
Amount
Proportion in same type
transaction in the year %
Amount
Proportion in same type
transaction in the year
%
Gujing Group 31,250.00 0.08 95,232.60 0.05
Bozhou Gujing
Comprehensive Service
Company
—— ——
600,917.44 0.30
Boshou Gujing Thermal
Power Co., Ltd
—— ——
33,615.38 0.02安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
86
②Goods purchase
③ Accepted labor
④ Warranty
None
(3) Balance of payables and receivables of the interested parties
Gujing Jiufang
Pharmaceuticals Co., Ltd 430,416.00 1.16
—— ——
Bozhou Gujing Guest House
Co., Ltd 113,161.81 0.31 66,129.95 0.03
Anhui Ruijing Famous Wine
Trading Co., Ltd 11,824,200.40 31.96 2,520,102.56 1.26
Bozhou Gujing Workers’
Hospital 3,594.98 0.01
—— ——
Total 12,402,623.19 33.52 3,315,997.93 1.66
Name of interested parties
Reporting period Year-on-year 2008
Amount
Proportion in same type
transaction in the year
%
Amount
Proportion in same type
transaction in the year %
Anhui Gujing Comprehensive
Service Company
—— —— 8,844,557.37 4.42
Boshou Gujing Thermal Power
Co., Ltd
9,289,589.38 7.23 13,108,702.26 6.55
Total 9,289,589.38 7.23 21,953,259.63 10.97
Name of interested parties
Reporting period Year-on-year 2008
Amount
Proportion in same type
transaction in the year %
Amount
Proportion in same type
transaction in the year %
Anhui Jinyang Media
Advertising Co., Ltd. 32,433,519.50 91.20
2,783,259.00 25.60
Total 32,433,519.50 91.20 2,783,259.00 25.60
Company name
Ending book balance Beginning book balance
Amount Percentage Amount Percentage
Account receivable:
Gujing Group 48,695.00 0.12 55,835.00 0.14安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
87
XII. Contingencies
No significant contingency to be disclosed as of 30th June 2009.
XIII. Commitments
No significant commitment to be disclosed as of 30th June 2009.
Bozhou Zhenli Hengbao Co., Ltd - - 4,925.00 0.01
Boshou Gujing Thermal Power Co., Ltd - - 1,453.00 -
Gujing Jiufang Pharmaceuticals Co.,
Ltd
- - 85,277.20 0.21
Anhui VISTA Commerce and Tourism
(Group) Co., Ltd. 44,400.00 0.11
44,377.05 0.11
Total 93,095.00 0.23 191,867.25 0.47
Other receivables: -
Anhui Jinyang Media Advertising Co.,
Ltd.
1,025,500.00 1.23 3,300,384.09 3.53
Total 1,025,500.00 1.23 3,300,384.09 3.53
Advances to suppliers
Boshou Gujing Thermal Power Co., Ltd - - - -
Total - - - -
Account payable:
Anhui Gujing Comprehensive Service
Company
- - 29,760.00 0.03
Bozhou Zhenli Hengbao Co., Ltd - - - -
Boshou Gujing Thermal Power Co., Ltd - - 151,063.05 0.15
Anhui VISTA Commerce and Tourism
(Group) Co., Ltd.
- - 5,843.20 0.01
Total 186,666.25 0.19
Other payables: - - - -
Gujing Group 577,733.67 0.56 33,500,000.00 39.30
Anhui Gujing Comprehensive Service
Company
- - - -
Boshou Gujing Thermal Power Co., Ltd - - 31,591.70 0.04
Anhui VISTA Commerce and Tourism
(Group) Co., Ltd. 25,930,965.68 25.31
7,296,446.16 8.56
Total 26,508,699.35 25.87 40,828,037.86 47.90安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
88
XIV. Non-regulated issued after the date of balance sheet
No significant non-regulated issued after the date of balance sheet to be disclosed as of 30th June 2009.
XV. Other significant issues
No other significant issue to be disclosed as of 30th June 2009.
XVI. Supplementary
Profit rate of net asset and profit per share
Calculation process for profit per share:
(1) Basic profit per share:
报
告
期
利
润
Profit rate of net asset Profit per share (yuan/share)
Full
amortization
Weighted
average Full amortization Weighted average
Net profits 35,554,201.99
Net profit belongs to
shareholders of the
common shares of the
Company
35,609,194.93 5.16% 4.42% 0.15 0.15
Net profit belongs to
shareholders of the
common shares of the
Company after
deducting irregular
profit/loss
32,961,787.78 4.77% 4.09% 0.14 0.14
Net asset 693,830,760.45
Net asset belongs to
shareholders of the
common shares of the
Company
690,757,316.24
Items Calculating pro Balance of reporting period安徽古井贡酒股份有限公司2009 年半年度报告全部报送数据
89
(2) Diluted profit per share:
cess Amount
After deducting irregular
profit/lose
Net profit of the current period
belongs to shareholders of the
common shares of the Company
(1) 35,609,194.93 32,961,787.78
Overseas released total common
share at the beginning of the year
(2) 235,000,000.00 235,000,000.00
Weighted number of increased
common shares released in current
year
(3) 0.00 0.00
Weighted number of decreased
common shares repurchased in
current year
(4) 0.00 0.00
Weighted average of Overseas
released common share
(5)=(2)+(3)-(4) 235,000,000.00 235,000,000.00
Basic profit per share (6)=(1)÷(5) 0.15 0.14
Items
Calculating
process
Balance of reporting period
Amount
After deducting irregular
profit/lose
Net profit of the current period belongs to
shareholders of the common shares
(1)
35,609,194.93 32,961,787.78
Interests of diluted potential common shares
which confirmed as expenses
(2)
Transfer expenses of diluted potential
common shares
(3)
Income tax rate (4) 0.25 0.25
Net profit of the current period belongs to
shareholders of the common shares after
adjustment
(5)=(1)+[(2
)-(3)]×[1-
(4)] 35,609,194.93 32,961,787.78
Calculation for weighted average of common
share of basic profit of each share
(6)
235,000,000.00 235,000,000.00
Increased weighted average of common share (7) 0 0
