Gujing Distillery Original Chinese Spirits Abstract of Annual Report 2016
Stock code: 000596, 200596 Stock name: Gujing Distillery, Gujing Distillery B Announcement No.: 2017-003
ANHUI GUJING DISTILLERY COMPANY LIMITED
ABSTRACT OF ANNUAL REPORT 2016
I Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the operating
results, financial condition and future development planning of the Company, investors are kindly reminded to
read the full text carefully on the media designated by the China Securities Regulatory Commission (the
“CSRC”).
This Annual Report and its abstract have been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Modified auditor’s opinion
□ Applicable √ Not applicable
Proposal for profit distribution to common shareholders or converting capital reserve into share capital for this
Reporting Period, which has been considered and approved by the Board
√ Applicable □ Not applicable
Share capital increase from capital reserve
□ Yes √ No
The Board has considered and approved the following proposal for profit distribution to common shareholders:
Based on the total shares of the Company on December 31, 2016, a cash dividend of RMB6.00 (tax inclusive) per
10 shares will be distributed to all shareholders of the Company. No bonus shares will be granted, nor will any
capital reserve be converted into share capital.
Proposal for profit distribution to preference shareholders for this Reporting Period, which has been considered
and approved by the Board
□ Applicable √ Not applicable
II Company profile
1. Stock profile
Gujing Distillery, Gujing 000596, 200596
Stock name Stock code
Distillery B
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Ye Changqing Ma Junwei
Office address Gujing Town, Bozhou City, Anhui Province, Gujing Town, Bozhou City, Anhui Province,
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Gujing Distillery Original Chinese Spirits Abstract of Annual Report 2016
P.R.China P.R.China
Fax （0558）5710099 （0558）5710099
Tel. （0558）5712231 （0558）5710057
E-mail gjzqb@gujing.com.cn gjzqb@gujing.com.cn
2. Brief introduction to the main business or products in this Reporting Period
The Company specializes in the production and marketing of distilled spirits.
No changes have occurred to the main business of the Company in this Reporting Period. And the main products
of the Company are the original Chinese spirits series, the traditional Gujing spirits series and the light Gujing
spirits series.
As one of China’s traditional top eight liquor brands, the Company is committed to superior quality. Its spirits
comes from quality grain and water adopting a unique technique and is well stored. With its spirits produced in
Bozhou, known as “a city good for health”, the Company promotes a healthy drinking concept. It also introduces
China’s distilled spirits culture to the world through tours to New York and Milan.
3. Key financial results
(1) Key financial results for the past three years
Indicate by tick mark whether the Company performed any retroactive adjustments to or restatement of its
accounting data due to changes of accounting policies or correction of accounting errors.
□ Yes √ No
Unit: RMB
2016 2015 +/-% 2014
Operating revenues 6,017,143,660.56 5,253,411,479.40 14.54% 4,650,855,881.72
Net profit attributable to
829,630,063.38 715,578,369.68 15.94% 597,041,887.34
shareholders of the Company
Net profit attributable to
shareholders of the Company before 792,534,098.54 682,760,794.86 16.08% 568,353,541.08
exceptional profit and loss
Net cash flows from operating
1,183,231,808.06 790,109,535.01 49.76% 387,494,289.89
activities
Basic earnings per share
1.65 1.42 16.20% 1.19
(RMB/share)
Diluted earnings per share
1.65 1.42 16.20% 1.19
(RMB/share)
Weighted average return on equity
15.88% 15.91% -0.03% 15.05%
(%)
December 31, 2016 December 31, 2015 +/-% December 31, 2014
Total assets 8,736,205,153.86 7,183,147,641.13 21.62% 6,413,518,166.03
Net assets attributable to
5,595,121,383.96 4,833,721,630.08 15.75% 4,181,050,977.96
shareholders of the Company
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Gujing Distillery Original Chinese Spirits Abstract of Annual Report 2016
(2) Key financial results by quarter
Unit: RMB
1Q 2Q 3Q 4Q
Operating revenues 1,843,478,461.71 1,201,556,245.02 1,460,526,002.88 1,511,582,950.95
Net profit attributable to
344,007,925.98 87,047,536.64 151,384,181.93 247,190,418.83
shareholders of the Company
Net profit attributable to
shareholders of the Company before 339,439,775.36 83,796,577.13 128,287,249.62 241,010,496.43
exceptional profit and loss
Net cash flows from operating
475,909,121.05 -149,796,508.06 876,734,575.48 -19,615,380.41
activities
Indicate by tick mark whether there are any material differences between the financial indicators above or their
summations and those which have been disclosed in quarterly or semi-annual reports.
□ Yes √ No
4. Share capital and shareholders
(1) Numbers of common shareholders and preference shareholders with resumed voting rights as well as
shareholdings of top ten shareholders
Unit: share
Total number Total number of
Total number
of common preference
of preference
shareholders shareholders with
shareholders
Total number of common at the prior resumed voting
21,272 16,875 with resumed 0 0
shareholders at the period-end month-end rights at the prior
voting rights
before the month-end before
at the
disclosure of the disclosure of
period-end
this Report this Report
Top 10 shareholders
Shareholding Total shares Pledged or frozen shares
Nature of Number of restricted shares
Name of shareholder percentage held at the
shareholder held Status Number
(%) period-end
ANHUI GUJING GROUP State-owned
53.89% 271,404,022 Pledged 114,000,000
COMPANY LIMITED corporation
Foreign
GAOLING FUND,L.P. 2.47% 12,446,408
corporation
Foreign
UBS (LUXEMBOURG) S.A. 2.41% 12,150,199
corporation
Foreign
NORGES BANK 2.28% 11,458,346
corporation
CENTRAL HUIJIN ASSET State-owned
1.30% 6,543,600
MANAGEMENT CO., LTD. corporation
CHINA INT'L CAPITAL CORP
Foreign
HONG KONG SECURITIES 1.20% 6,067,462
corporation
LTD
NATIONAL SOCIAL
State-owned
SECURITY FUND 0.99% 4,970,485
corporation
PORTFOLIO 113
GREENWOODS CHINA Foreign
0.98% 4,939,963
ALPHA MASTER FUND corporation
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Gujing Distillery Original Chinese Spirits Abstract of Annual Report 2016
CHINA LIFE INSURANCE
CO., State-owned
0.90% 4,536,754
LTD.-DIVIDEND-INDIVIDUAL corporation
BONUS -005L-FH002SHEN
MORGAN STANLEY & CO. Foreign
0.76% 3,833,134
INTERNATIONAL PLC corporation
Among the above shareholders, the Company's controlling shareholder, Anhui Gujing
Group Co., Ltd., has no relationship with other shareholders and does not belong to
the acting-in-concert stipulated in the Administrative Measures on Information
Related or acting-in-concert parties among the
Disclosure of Changes in Shareholding of Listed Companies. In addition, the
shareholders above
relationship between other shareholders is unknown, and it is unknown whether it
belongs to the acting-in-concert stipulated in the Administrative Measures on
Information Disclosure of Changes in Shareholding of Listed Companies.
Shareholders conducting securities margin
N/A
trading (if any)
(2) Number of preference shareholders and shareholdings of top ten of them
□ Applicable √ Not applicable
No preference shareholders in this Reporting Period.
(3) Ownership and control relations between the actual controller and the Company
The People’s Government of Bozhou
Anhui Gujing Group Company Limited
Anhui Gujing Distillery Company Limited
5. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue
before the approval date of this Report or were due but could not be redeemed in full?
No.
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Gujing Distillery Original Chinese Spirits Abstract of Annual Report 2016
III Performance discussion and analysis
1. Performance review for this Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
2016 marked the first year of China’s 13th Five-Year Plan for Economic and Social Development, as well as a
year to carry through the supply-side structural reform. Consumers have attached more importance to quality. And
along with the deep change and rebound in the distilled spirits industry, the fundamentals of famous distillers in
China have kept improving. Under such circumstances, upholding the values of “Be Honest, Offer Quality Spirits,
Be Stronger and Be Helpful to the Society” and following the “Distilled Spirits 5.0” strategy, the Company
strengthened branding and quality improvement, as well as improved its operation by adopting a series of
effective measures. As a result, the operating goals that the Board had set for the year were achieved.
For 2016, the Company achieved, on a consolidated basis, operating revenues of RMB6.017 billion, up 14.54%
compared with a year earlier; total profit of RMB1.15 billion, up 19.09% from last year; net profit of RMB0.83
billion, representing a year-on-year growth of 15.94%; earnings per share of RMB1.65, 16.20% higher than last
year; and net operating cash flows of RMB1.183 billion, representing a 49.76% increase on a year-on-year basis.
(I) Focusing on Strategy 5.0, and constantly enhancing the core competitiveness of the major business of liquor
A. “Double brands” open up the new pattern. Faced with a complex economic environment in the reporting period,
the Company has actively sought the extensional development, continued to deploy throughout the entire country
and give play to the effect of synergy and integration.
B. Efforts in deep cultivation of market construction. In 2016, the Company continued to make efforts in “sinking
organization, channels and personnel”, implement contact point management, split sales terminal units and
stimulate dynamism; strengthened target budgeting, process KPI and performance appraisal, and constantly
cultivated market construction.
C. Continuous optimization of the product system. The Original Chinese Spirits is granted with the title of
“1985-2015 Chinese Liquor Historical Landmark Product” by China National Food Industry Association. 37℃
Bo Ju liquor, the healthy new product, has been successfully launched, opening up a new pattern of thinking for
developing the healthy liquors under Gujing Distillery; the Original Chinese Spirits G20, Gujing Distillery 1989
has been launched innovatively, continuously enriching product lines.
D. Constant enhancement of the brand value reputation. The brand construction has been vigorously promoted
with a series of activities and promotion events organized. Gujing Distillery has entered the Middle and East
Europe by grasping the strategic opportunity of “One Belt One Road”. The value of the brand Gujing Distillery
has reached RMB49.259 billion during the reporting period.
(II) Innovating management tools and methods, activating management dynamism and improving scientific and
technological innovation
A. Exploration of internal marketization and informationization of in-depth application. In the reporting period,
the Company has implemented the appraisal mechanism for internal marketization, which activated the internal
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Gujing Distillery Original Chinese Spirits Abstract of Annual Report 2016
dynamism and motivation; the projects such as Customer Relationship Management (CRM) and Unified Call
Center have made phased progress.
B. Scientific and technological innovation has been intensified with a number of breakthroughs made. Two
projects have been selected into the list of key R&D projects under the 13th Five-Year Plan, one item of
technological achievements have passed the provincial accreditation of scientific and technological achievements,
four items of technological achievements have been converted and applied into production, and two items have
passed the review based on the local standard at the provincial level. The academician workstation and the
state-level post-doctoral research workstation have successfully passed the performance appraisal, Anhui Solid
State Fermentation Engineering Technology Research Center has passed the quality acceptance, the state-level
corporate technological center has been rated excellent in the annual appraisal, and the Company has won Anhui
Quality Award.
(III) Optimizing the contents of appraisal, and improving the skill of the management staff
A. The company has optimized the contents of performance appraisal, intensified the strength of rewards and
punishments, revised and improved the appraisal system, simplified the relevant indicators, highlighted the key
points and publicized the results.
B. The company has applied the echelon construction of talents, carrying out the targeted nurture and development
of core marketing staff, core technical staff and core management staff, which has achieved good results.
(IV) Continuing to promote the corporate brand image by centering around “Two learn one to do learning
education” and Gujing’s core values
In the reporting period, the Company has strengthened its educational guidance by vigorously conducting the
educational activities themed with “three-strict and three-honest” and “four-consciousness”, and deepening the
implementation of the series learning and discussion activities on “Two learn one to do learning education” and
“aim at keeping up by acting”. The Company has combined its corporate values of “behaving decently, brewing
good wines, cultivating moral character of employees and benefiting the society” with Party built companies,
promoting the integration of Party governance and building a learning, innovative and appreciative company.
(V) Pressure and weaknesses in the Company during the reporting period
A. Pressure of the regional competitions and increasing costs of the traditional manufacturing industry.
B. Insufficient motivation for staff growth and inflexible corporate mechanism.
C. Unthorough capillary management and existence of “laziness, tiredness, stubbornness and squeamishness” to
different extents.
2. Significant changes in the main business in this Reporting Period
□ Yes √ No
3. Products contributing over 10% of the main business revenue or profit
√ Applicable □ Not applicable
Unit: RMB
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Gujing Distillery Original Chinese Spirits Abstract of Annual Report 2016
Operating
Operating Gross profit Operating profit: Gross profit
Product Operating profit revenue: YoY
revenue margin YoY +/-% margin: YoY +/-%
+/-%
Distilled spirits 5,876,233,721.58 1,067,835,648.30 75.30% 14.80% 19.59% 3.76%
4. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes √ No
5. Significant YoY changes in the operating revenues, operating costs and net profit attributable to the
common shareholders or their composition
□ Applicable √ Not applicable
6. Possibility of listing suspension or termination
□ Applicable √ Not applicable
7. Issues related to the financial report
(1) YoY changes in accounting policies, accounting estimations and measurement methods
□ Applicable √ Not applicable
No changes.
(2) Retroactive restatements due to correction of significant accounting errors in this Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) YoY changes in the scope of the consolidated financial statements
√ Applicable □ Not applicable
The Company obtained 51% equities of Wuhan Tianlong Yellow Crane Tower Co., Ltd for the enterprise merger
not under the same control during the Reporting Period, and newly established the subsidiaries Anhui Gujing
Yunshang Electronic Commerce Co., Ltd and Anhui Zhenrui Contruction Project Co., Ltd.; The Company newly
established sub-subsuaiaries Bozhou Gujing Distillery Marketing Co., Ltd, Wuhan Ya shibo Technology Co., Ltd,
and Wuhan Junya Sales Co., Ltd; The Company liquidated its subsidiary Bozhou Gujing Packaging Co., Ltd in the
current year.
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