Gujinggong Liquor Aged Original Liquor Annual Report 2019 (Summary)
Stock Code: 000596, 200596 Stock Name: Gujing Distillery, Gujing Distillery-B Announcement No. 2020-005
ANHUI GUJING DISTILLERY COMPANY LIMITED
ANNUAL REPORT 2019 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2019 Annual Report of Anhui Gujing Distillery Company Limited (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full understanding of the
Company’s operating results, financial position and future development plans, investors should carefully read the aforesaid full text,
which has been disclosed together with this Summary on the media designated by the China Securities Regulatory Commission (the
“CSRC”).
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:
√ Applicable □ Not applicable
Bonus issue from capital reserves:
□ Yes √ No
The Board has approved a final dividend plan for the ordinary shareholders as follows: based on the Company’s total shares on 31
December 2019, a cash dividend of RMB15.00 (tax inclusive) per 10 shares is to be distributed to the shareholders, with no bonus
issue from either profit or capital reserves.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:
□ Applicable √ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese versions shall prevail.
Part II Key Corporate Information
1. Stock Profile
Stock name Gujing Distillery, Gujing
Stock code 000596, 200596
Distillery-B
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Ye Changqing Mei Jia
Gujing Town, Bozhou City, Anhui Province, Gujing Town, Bozhou City, Anhui Province,
Address
P.R.China P.R.China
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Gujinggong Liquor Aged Original Liquor Annual Report 2019 (Summary)
Fax （0558）5710099 （0558）5710099
Tel. （0558）5712231 （0558）5710057
Email address gjzqb@gujing.com.cn gjzqb@gujing.com.cn
2. Principal Activities or Products in the Reporting Period
The Company primarily produces and markets liquor and spirits.
As one of China’s traditional top eight liquor brands, the Company is the first listed liquor and spirits company with both A and B
stocks. It is located in Bozhou City, Anhui Province in China, the hometown of historic figures Cao Cao and Hua Tuo, as well as one
of the world’s top 10 liquor-producing areas. No changes have occurred to the main business of the Company in the Reporting Period.
As the main product of the Company, the Gujing spirit originated as a “JiuYunChun Spirit”, together with its making secrets, being
presented as a hometown specialty by Cao Cao, a famous warlord in China’s history, to Emperor Han Xiandi (name: Liu Xie) in A.D.
196, and was continually presented to the royal house since then. With crystalline liquid, rich aroma, a fine flavor and a lingering
aftertaste, the Gujing spirit has helped the Company win four national distilled spirit golden awards, a golden award at the 13th SIAL
Paris, the title of China’s “Geographical Indication Product”, the recognition as a “Key Cultural Relics Site under the State
Protection”, the recognition with a “National Intangible Cultural Heritage Protection Project”, a Quality Award from the Anhui
provincial government, a title of “National Quality Benchmark”, among other honors.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Unit: RMB
2019-over-2018 change
2019 2018 2017
(%)
Operating revenue (RMB) 10,416,961,584.23 8,686,140,336.89 19.93% 6,968,325,048.55
Net profit attributable to the listed
2,097,527,739.86 1,695,231,643.05 23.73% 1,148,740,644.93
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 1,891,097,157.37 1,638,204,454.34 15.44% 1,069,457,368.70
exceptional gains and losses (RMB)
Net cash generated from/used in
192,447,063.45 1,440,881,285.95 -86.64% 930,914,712.78
operating activities (RMB)
Basic earnings per share
4.17 3.37 23.74% 2.28
(RMB/share)
Diluted earnings per share
4.17 3.37 23.74% 2.28
(RMB/share)
Weighted average return on equity
25.55% 24.03% 1.52% 19.09%
(%)
Change of 31
31 December 2019 31 December 2018 December 2019 over 31 December 2017
31 December 2018 (%)
Total assets (RMB) 13,871,297,363.16 12,509,928,449.72 10.88% 10,152,862,119.05
Equity attributable to the listed
8,944,111,764.44 7,601,984,024.58 17.65% 6,459,078,378.38
company’s shareholders (RMB)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
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Gujinggong Liquor Aged Original Liquor Annual Report 2019 (Summary)
Operating revenue 3,668,502,474.92 2,319,610,524.17 2,214,767,350.88 2,214,081,234.26
Net profit attributable to the listed
783,389,904.73 464,926,409.28 493,294,846.62 355,916,579.23
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 749,094,364.21 416,776,614.89 444,504,344.99 280,721,833.28
exceptional gains and losses
Net cash generated from/used in
1,010,701,440.91 31,032,307.92 1,199,637,755.93 -2,048,924,441.31
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of Number of preferred
Number of
ordinary shareholders with
Number of preferred
shareholders at resumed voting
ordinary shareholders with
21,204 the month-end 29,696 0 rights at the 0
shareholders at resumed voting
prior to the month-end prior to
the period-end rights at the
disclosure of this the disclosure of this
period-end
Report Report
Top 10 shareholders
Total shares Shares in pledge or frozen
Name of Nature of Shareholding
held at the Restricted shares held
shareholder shareholder percentage Status Shares
period-end
ANHUI GUJING
GROUP State-owned
53.89% 271,404,022 In pledge 114,000,000
COMPANY legal person
LIMITED
GAOLING Foreign
2.47% 12,446,408
FUND,L.P. legal person
AGRICULTURAL
BANK OF
CHINA- E FUND
CONSUMPTION
Other 2.45% 12,324,779
SECTOR STOCK
SECURITIES
INVESTMENT
FUND
CHINA INT'L
CAPITAL CORP
Foreign
HONG KONG 1.96% 9,871,986
legal person
SECURITIES
LTD
HONG KONG
SECURITIES Foreign
1.72% 8,672,976
CLEARING legal person
COMPANY LTD.
INDUSTRIAL Other 1.49% 7,500,000
AND
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Gujinggong Liquor Aged Original Liquor Annual Report 2019 (Summary)
COMMERCIAL
BANK OF
CHINA
LIMITED-
INVESCO
GREAT WALL
EMERGING
GROWTH
HYBRID
SECURITIES
INVESTMENT
FUND
UBS (LUX)
EQUITY FUND -
Foreign
CHINA 1.40% 7,068,861
legal person
OPPORTUNITY
(USD)
CENTRAL
HUIJIN ASSET State-owned
1.30% 6,543,600
MANAGEMENT legal person
CO., LTD.
GREENWOODS
Foreign
CHINA ALPHA 1.12% 5,657,150
legal person
MASTER FUND
Foreign
NORGES BANK 1.03% 5,211,411
legal person
Among the shareholders above, the Company’s controlling shareholder—Anhui Gujing Group
Company Limited—is not a related party of other shareholders; nor are they parties acting in
Related or acting-in-concert concert as defined in the Administrative Measures on Information Disclosure of Changes in
parties among the shareholders Shareholding of Listed Companies. As for the other shareholders, the Company does not know
above whether they are related parties or whether they belong to parties acting in concert as defined in the
Administrative Measures on Information Disclosure of Changes in Shareholding of Listed
Companies.
Shareholders involved in
securities margin trading (if N/A
any)
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
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Gujinggong Liquor Aged Original Liquor Annual Report 2019 (Summary)
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of this
Report’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
No.
In 2019, under the guidance of the spirit of the 19th National Congress of the Communist Party of China and President Xi Jinping’s
thought on socialism with Chinese characteristics for a new era, the Company further implemented various guidelines and policies.
Upholding the values of “Be Honest, Offer Quality Spirits, Be Stronger and Be Helpful to the Society”, the Company beefed up the
implementation of the new strategy of “Digitalization, Internationalization, and Stricter Compliance with Law and Regulations”, as
well as promoted the “Nie Guangrong Spirit”. It further improved corporate management, motivated employees, accelerated
transformation and upgrading, further implemented the “Distilled Spirits 5.0” strategy, and successfully achieved all the operating
objectives.
For 2019, the Company recorded operating revenue of RMB 10.417 billion, up 19.93% compared to 2018; a net profit attributable to
the Company as the parent of RMB 2.098 billion, rising 23.73% from the year earlier; earnings per share of RMB4.17, 23.74%
higher than 2018; and net cash generated from operating activities of RMB192 million, going down 86.64% on a year-on-year basis.
Meanwhile, the brand value reached a new high of RMB146.98 billion.
The Company’s Overall Operation During the Reporting Period
1. Strengthen market construction to continuously rise the brand influence
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Gujinggong Liquor Aged Original Liquor Annual Report 2019 (Summary)
By strengthening the market construction, the Company further enhanced the organization-driven. Focused on systemic competition,
the Company established a new marketing mechanism of upstream-downstream linkage, information exchange, quick response, and
overall coordination. The brand construction has been strengthened to gradually increase brand influence.
2. Accelerate the transformation of the Company and continuously improve the management
The Company stands firmly on Strategy 5.0 and promotes the depth of digital transformation. During the Reporting Period, the
digital marketing, Gujing SAP ERP and CRM projects were completed, and at the same time, these projects were successfully
switched online. The digital operation structure system with digital marketing (CRM) in the front line and SAP ERP as the main
channel in the backstage has been completed to lay a foundation for a new digital Gujing.
3. Stably optimize quality control and boost the application of scientific research transformation
The Company strengthened the management of production process, established a sound quality control system and standard,
optimized the inspection project of raw and auxiliary materials into the factory, standardized inspection standards and inspection
operations, improved supply efficiency, and avoided behavioral risks. The Company’s two technological innovation achievements
have reached the international leading level, one scientific achievement has reached the domestic leading level, one scientific
achievement has won a prize awarded by China Light Industry Council, one has won the third prize of Provincial Science and
Technology Award, and two scientific research achievements have been transformed within the company. Gujing Distillery Product
Design Center was recognized by the “National Industrial Design Center” and “China Light Industry Engineering Technology
Research Center”.
4. In-depth collaboration between production and sales ensures a prominent effect of balanced production
The Company implemented a coordinate mechanism between production and sales to continuously improve production efficiency
and supply satisfaction. A logistics system and a planting model with high-quality raw grain base have been built to ensure the
quality of raw materials and reduce supply risks.
5. Strictly abide by the bottom line of environmental protection and constantly improve the environmental protection
infrastructure
The Company continued to increase investment in environmental protection, and achieved the “Four Goals” for safe production
throughout 2019. The Company’s main pollutant indicators for environmental protection was stable and reached the standard, which
effectively controlled the energy loss rate and equipment failure rate. In the whole year, all the main environmental pollution
discharge pollutants met the standard, and no environmental pollution accidents occurred. The company was successfully selected
into the “National Green Factory” list.
6. Adhere to the guidance of the Party building and promote the “Nie Guangrong Spirit”
The Company implemented an in-depth educational activity on the theme of “Remain true to our original
aspiration and keep our mission firmly in mind”. According to the arrangement of the Central Committee, the Provincial Party
Committee and the Municipal Party Committee, the Company resolutely follows the main line of learning and implementing Xi
Jinping’s Thought on Socialism with Chinese Characteristics for a New Era. Focused on the general requirements of “remain true,
fulfill the Mission, find the reasons of falling behind, and emphasize the implementation”, the Company spared no effort to study and
education, investigation and research, inspection of problems, rectification and implementation throughout the entire process and
yielded prominent fruits. During this period, the Company held a grand activity “Report on Comrade Nie Guangrong’s Advanced
Deeds” in the Great Hall of the People in Beijing, making “Nie Guangrong Spirit” well spread and promoted.
7. During the Reporting Period, the Company still had the following pressures and inadequacies
(1) The complex macroeconomic environment has brought many uncertainties to the development of the liquor industry.
(2) The level of lean management of the Company falls behind the pace of the Company’s development.
(3) The system, mechanism and the vitality of the Company need to be further activated.
(4) Bold innovation is required in cultivating talents, inspiring talents, and retaining talents by system.
2. Significant Change to Principal Activities in the Reporting Period
□ Yes √ No
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Gujinggong Liquor Aged Original Liquor Annual Report 2019 (Summary)
3. Product Category Contributing over 10% of Principal Business Revenue or Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Gross profit
Product category Operating revenue Operating profit operating revenue operating profit gross profit
margin
(%) (%) margin (%)
Distilled spirits 10,164,144,471.76 2,713,088,216.06 77.79% 19.30% 20.38% -0.24%
4. Business Seasonality that Calls for Special Attention
□ Yes √ No
5. Significant YoY Changes in Operating Revenue, Cost of Sales and Net Profit Attributable to the Listed
Company’s Ordinary Shareholders or Their Compositions
□ Applicable √ Not applicable
6. Possibility of Listing Suspension or Termination
□ Applicable √ Not applicable
7. Matters Related to Financial Reporting
(1) YoY Changes to Accounting Policies, Accounting Estimates or Measurement Methods
√ Applicable □ Not applicable
Contents and reasons Approval procedures Notes
The Ministry of Finance issued Accounting
Standards for Business Enterprises
No.22-Recognition and Measurement of
Financial Instruments (CK [2017] No. 7),
Accounting Standards for Business
Enterprises No.23-Transfer of Financial
Assets (CK [2017] No. 8), Accounting
Standards for Business Enterprises
No.24-Hedge Accounting (CK [2017] No.
9) and Accounting Standards for Business
Enterprises No.37-Presentation of Refer to Announcement on Changes in
th
Financial Instrument (CK [2017] No. 14). Reviewed and approved on the 9 Meeting Accounting Policy on
The Company started to implement the
th
of the 8 Board of Directors and the 8th
http://www.cninfo.com.cn disclosed on the
abovementioned new standards from 1 Meeting of the 8th Supervisory Committee
same date for details.
January 2019. According to the above
requirements, the Company implemented
the above new standards governing
financial instrument from 1 January 2019,
and changed relevant accounting polices in
line with the stipulations of the above new
standards governing financial instrument.
In accordance with the relevant
requirements of new standard governing
financial instrument, the retroactive
adjustment was not conducted to the same
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Gujinggong Liquor Aged Original Liquor Annual Report 2019 (Summary)
period of last year, and no impact the
changes of accounting policies will occur
to the financial situation and operating
results in the prior period.
On 30 April 2019, Notes of Revising and
Printing the Format of 2019 General
Enterprises Financial Statement (CK
[2019] No. 6) (hereinafter referred to as
“Notes of Revising”) was issued by the
Ministry of Finance, making partial
amendments to the format of general
enterprises financial statements, stipulated
that the format is applicable to the interim Reviewed and approved on the 10th Refer to Announcement on Changes in
and annual financial statements in and after Meeting of the 8th Board of Directors and Accounting Policy on
2019 of non-financial business executing the 9th Meeting of the 8th Supervisory http://www.cninfo.com.cn disclosed on the
ASBE and the regulations of Notes of Committee same date for details.
Revising. The Company belongs to the
enterprise executed the new standards
governing financial instrument but not new
standards governing revenue and leases,
and shall adjust correspondingly to the
format of financial statements and part of
course presentation combined with the
requirements of Notes of Revising.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) YoY Changes to the Scope of Consolidated Financial Statements
√ Applicable □ Not applicable
Principal stake（%）
Name of Nature of the
place of registered Make way
subsidiary business directly indirect
business
Hubei Yellow
Crane Tower Hubei Hubei Production and
51.00 Set up
beverage co. xianning xianning manufacturing
LTD
8
