YANTAI CHANGYU PIONEER WINE COMPANY
LIMITED
The 1st Quarter Report of 2011
1. Important
1.1 The Board of Directors, board of Supervisors, senior managers of the
Company collectively and individually accept full responsibility for the
truthfulness, accuracy and completeness of the information contained in
this report and confirm that to the best of their knowledge and belief there
are no other facts the omission of which would make any statement herein
misleading.
1.2 No directors or senior managers have any dissidence.
1.3 All directors attended the Board of Directors’ meeting to deliberate this
report.
1.4 The 1st quarter report of 2011 has not been audited.
1.5 The chairman of the Board of Directors Mr. Sun Liqiang, the chief
accountant Mr. Leng Bin and the chief of accounting department Mr. Jiang
Jianxun assure the truth and integrity of the financial and accounting
statement in this report.
2. THE BASIC INFORMATION OF THE COMPANY
2.1 Main accountant data and financial index
Unit: CNY
At the end of the At the end of last More or
report period year less (%)
Total assets（CNY） 6,730,741,428.00 5,983,377,253.00 12.49%
Owner’s equity attributed to
4,402,290,000.00 3,839,708,341.00 14.65%
shareholders of listing company（CNY）
Share capital (share) 527,280,000.00 527,280,000.00 0.00%
Net asset per share attributed to shareholders of
8.35 7.28 14.70%
listing company (CNY/share)
st
During the 1 quarter of More or
report period last year less (%)
Total operation revenue （CNY） 2,090,018,976.00 1,585,142,100.00 31.85%
Net profit attributed to shareholders of listing
562,581,659.00 378,135,484.00 48.78%
company（CNY）
Net cash flow from operating activities（CNY） 1,084,182,965.00 458,426,123.00 136.50%
Net cash flow per share from operating
2.06 0.87 136.78%
activities(CNY/share)
Basic Earnings per Share(CNY/share) 1.07 0.72 48.61%
Diluted Earnings per Share (CNY/share) 1.07 0.72 48.61%
Weighted average rate of net assets return 12.01% 11.72% 0.29%
Weighted average rate of net assets return after
12.01% 11.72% 0.29%
deducting irregular profit and loss
Item for irregular profit and loss
(√) applicable □not applicable
Unit: CNY
Item for irregular profit and loss Amount Notes
Government grant accounted in profit and loss this year (except for 130,000.00
those that closely related to the operation, under national laws or in
accordance with certain criteria)
Except the hedging business related to normal operation of the 52,122.00
Company, the profit and loss on fair value from holding trading
financial assets and liabilities, proceeds from disposition of trading
financial assets and liabilities, and salable financial assets
Income and expenses from other non-business activities 191,924.00
Effect index for the income tax -93,511.00
Effect index for minority shareholders’ equity -32,410.00
Total 248,125.00 -
2.2 The total number of the shareholders and top 10 shareholders
with unlimited shares at the end of the report period
Unit: share
Total number of shareholders 24,106 shareholders, including 18,119
shareholders with A shares, 5,987
shareholders with B shares
The top 10 shareholders with unlimited shares
Name of Shareholders Number of unlimited The Type of shares
shares
YANTAI CHANGYU GROUP CO. LTD. 265,749,120 A shares
HTHK/CMG FSGUFP-CMG FIRST STATE CHINA B shares
20,284,304
GROWTH FD
GAO-LING FUND, L.P. 16,950,592 B shares
BBH BOS S/A FIDELITY FD-CHINA FOCUS FD 9,533,697 B shares
GOVERNMENT OF SINGAPORE INV. CORP. –A/C “C” 5,843,361 B shares
UBS (LUXEMBOURG) S.A 4,543,836 B shares
MIXED SAFE RETURN OF THE GREAT WALL A shares
3,900,000
SECURITIES INVESTMENT FUND
CHINA UNIVERSAL GROWTH FOCUS EQUITY A shares
3,817,279
SECURITIES INVESTMENT FUND
HTHK-MANULIFE CHINA VALUE FUND 3,579,270 B shares
BBH LUX-FIDELITY FUNDS-EMERGING MARKETS B shares
3,498,386
FUND
3. MAJOR ISSUES
3.1 The Great Change and Reasons on Main Accountant Data and
Financial Index
(√)applicable
1.At end of report period, other payable accounts increased by 41.97% compared with beginning of
report period, mainly due to growth of payable afforestation expenses.
2. During report period, compared with same period of last year, the managerial expenses increased
by 80.88% because of growth of afforestation expenses, the financial cost fell by 263.56% due to
increase of bank deposit interest, the investment income decreased by 54.85% mainly attributed to
drop of the investment income from IPO shares, the non-operating income increased by 90.05%,
mainly due to the sales growth of wastes from grape processing.
3.2 Analysis and explanation on the progress, impact and solution of
major issues
3.2.1 Non-standard opinions
(√)not applicable
3.2.2 The situation on the company providing funds to the controlling
shareholders or its affiliates and acting against the prescribed
procedures to provide external guarantees
(√)not applicable
3.2.3 The situation on the signature and performance on the major
contracts in the daily operations
(√)not applicable
3.2.4 Others
(√) not applicable
3.3 The Execution of Promised Issues by the Company, Shareholders
and Actual
Controller
The promised issues from the Company, its directors, supervisors and senior
officers, or its shareholders with shares over 5% during the report period or
such promised issues carried out to the report period.
(√) applicable
Commitment Committed Commitment content Performance
items person
situation
Share reform Yantai 1. From the day of being granted the It has already
commitment Changyu right of circulation on stock market as
been fulfilled.
Group March 21st,2006, Changyu Group will
Co. Ltd. not transact or transfer its shareholding
in the Company within 36 months
2.Within 12 months as from the day of the
expiry of the afore-said promising period,
the amount of the former non-circulating
stock that Changyu Group may list for
transaction at Stock Exchange can’t be
over 5% of its total and within 24 months
after that, can’t be over 10% of its total.
3. Changyu Group also promised to
propose over the shareholders’ meetings
2005, 2006 and 2007 to distribute the
Company’s profit in cash no less than 65%
of the distributable profit realized in the
same year and ensure to vote for aye for
this proposal.
Commitments in No. No. No.
the acquisition
report or report
of changes in
equity
Commitments No. No. No.
when making
major assets
restructuring
Issuance Yantai Non-horizontal competition It is always in
Commitments Changyu strict
Group
performance.
Co. Ltd.
Other Yantai The Company has well noted the Securities Under
commitments Changyu Law, Administration Methods of Takingover
performance.
(including Group Listed Companies, Guidance on Releasing
additional Co. Ltd. the Limited Shares Transfer of the Listed
commitments) Companies and the relative business rules
of Shenzhen Stock Exchange, and will
strictly obey the relevant provisions of
above documents, faithfully carry out the
commitments and bear the corresponding
legal responsibility, when in the future
reducing the holding of the shares with
releasing restrictions on sale price in this
time.
3.4 Warning and explanation for the estimation on the possible loss of
cumulative net profit in the period from the beginning of this year to
the end of the next report period or the great change comparing with
same period of last year.
( √ ) not applicable
3.5 Other major issues
3.5.1 Securities investment
( √ ) applicable
Unit: CNY
item type Code Ab. Initial Share Book value at Proportion on Profit and
investment quantity end of report total securities loss during
(CNY) at end of period investment at report period
report end of report
period period (%)
(share)
1 share - - 0.00 0 0.00 0.00% 0.00
Other securities investment
0.00 - 0.00 0.00% 0.00
by end of report period
Profit and loss on securities
- - - - 52,122.00
sold during report period
Total 0.00 - 0.00 100% 52,122.00
Information on securities investment
During report period, the Company gained the yield of CNY52,122 from selling the allotted
IPO shares.
3.5.2 The Company’s Receptions, Studies and Visits during report
period
Reception date Reception place Reception way Visitor Main topic and
material
provided
Jan.11, 2011 Meeting room of Field survey Fullgoal Fund Principal operation,
the Company Management future development
Meeting room of Field survey Wanli Fuda Principal operation,
Jan.20,2011
the Company Investment future development
Meeting room of Field survey Principal operation,
Jan. 27, 2011 Industrial Securities
the Company future development
Meeting room of Field survey Ping An Assets Principal operation,
Feb.10, 2011
the Company Management future development
Meeting room of Field survey Principal operation,
Feb.15, 2011 China AMC Fund
the Company future development
Meeting room of Field survey Principal operation,
Feb.23, 2011 the Company New China Assets future development
Meeting room of Field survey Soochow Asset Principal operation,
Feb.28, 2011 the Company future development
Management
Meeting room of Field survey Principal operation,
March 5,2011 the Company Hua An Fund future development
Meeting room of Field survey Shenyin Wanguo Principal operation,
March 8, 2011 the Company future development
Securities
3.6 Investment on financial derivatives
( √ ) not applicable
3.6.1 Investment on financial derivatives at end of report period
( √ ) not applicable
4. Annex
4.1 Balance Sheet
Balance Sheet (1)
Yantai Changyu Wine Pioneer Co., Ltd. March 31, 2011 Unit: CNY
At 31 March 2011 At 31 December 2010
Parent Parent
Consolidated company Consolidated company
Assets Note amount amount amount amount
Current assets：
Monetary fund 3,345,960,311 2,558,007,645 2,489,804,162 1,898,488,544
Financial assets for trade 21,200,000 21,200,000
Notes receivable 60,160,623 23,649,932 31,447,207 12,871,415
Account receivable 137,140,049 11,362,505 100,113,271 11,708,820
Advance money 93,035,375 64,051,514 74,728,756 40,352,558
Interest receivable 12,793,832 12,793,832 9,519,721 9,519,721
Dividend receivable 1,710,183,769 1,765,637,075
Other account receivable 37,725,262 99,042,678 30,686,838 1,155,602,622
Inventories 956,691,676 415,437,857 1,294,406,406 481,049,315
Non-current assets due within one
year
Other current assets 0
Total current assets 4,664,707,128 4,915,729,733 4,030,706,362 5,375,230,070
Non-current assets：
Financial assets for sale
Investment held to expiration
Long-term account receivable
Long-term equity investment 5,000,000 331,907,113 5,000,000 331,907,113
Real estate for investment
fixed assets 1,204,199,342 329,089,655 1,188,081,245 325,016,812
Construction in progress 309,686,051 16,059,055 242,107,575 13,603,659
Project material
Liquidation of fixed assets
Biological assets for production 37,503,222 9,977,384 37,773,638 10,270,836
Oil and gas assets
Intangible assets 240,383,843 86,753,795 208,847,847 87,521,064
Development expenditure
Goodwill
Long-term deferred expenses 105,406,655 106,233,673
Assets of deferred income tax 159,650,072 31,274,774 160,275,366 27,019,769
Other non-current assets 4,205,114 4,392,014 4,351,547 4,538,447
Total non-current assets 2,066,034,300 809,453,789 1,952,670,890 799,877,700
Total assets 6,730,741,428 5,725,183,522 5,983,377,253 6,175,107,770
Balance Sheet (2)
Yantai Changyu Wine Pioneer Co., Ltd. March 31, 2011 Unit: CNY
At 31 March 2011 At 31 December 2010
Parent Parent
Liabilities, rights and Consolidated company Consolidated company
interests of shareholders Note amount amount amount amount
Current liabilities:
Short-term loan
Financial liabilities for trade
Notes payable
Accounts payable 299,988,316 202,828,055 259,022,075 165,884,293
Advance money 316,259,553 309,481,976
Wage payable 169,780,106 141,130,951 186,915,812 114,351,323
Tax payable 605,670,195 138,392,367 649,365,259 122,920,579
Interest payable
dividend payable 0
Other accounts payable 677,060,107 1,224,355,635 476,897,721 1,768,065,889
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 2,068,758,277 1,706,707,007 1,881,682,843 2,171,222,084
Non-current liabilities：
Long-term loan
Bond payable
Long-term accounts payable
Special accounts payable
Estimated liabilities
Liabilities of deferred income
tax 5,336,115 5,336,115
Other non-current liabilities 97,955,000 8,027,000 100,213,000 8,027,000
Total non-current liabilities 103,291,115 8,027,000 105,549,115 8,027,000
Total liabilities 2,172,049,392 1,714,734,007 1,987,231,958 2,179,249,084
Shareholder rights and interests：
Capital stock 527,280,000 527,280,000 527,280,000 527,280,000
Capital reserve 557,222,454 557,222,454 557,222,454 557,222,454
Less: treasury stock
Surplus reserve 295,942,630 295,942,629 295,942,630 295,942,630
Undistributed profit 3,021,844,916 2,630,004,431 2,459,263,257 2,615,413,602
Total shareholder rights and
interests of parent company 4,402,290,000 4,010,449,515 3,839,708,341 3,995,858,686
Minority shareholder rights and
interests 156,402,036 156,436,954
Total shareholder rights and
interests 4,558,692,036 4,010,449,515 3,996,145,295 3,995,858,686
Liabilities and total
shareholders rights and interests 6,730,741,428 5,725,183,522 5,983,377,253 6,175,107,770
4.2 Profit statement
Yantai Changyu Wine Pioneer Co., Ltd. Jan.2011 – March 2011 Unit: CNY
Three months ended 31 Three months ended 31
March 2011 March 2010
Parent Parent
Consolidated company Consolidated company
Item Note amount amount amount amount
Business income 2,090,018,976 506,563,827 1,585,142,100 443,805,685
Less: business cost 543,222,709 388,453,744 467,527,845 314,718,832
Business tax and associate charges 105,983,152 57,861,944 88,409,828 54,082,439
Sales expenses 571,748,034 455,911,840
Management expenses 136,323,637 52,042,387 75,365,609 56,615,200
Financial expenses -12,843,351 -10,831,676 -3,532,633 -4,103,625
Assets depreciation loss
Add: fair value charge profit (loss is listed
with "-")
Investment profit ((loss is listed with "-") 52,122 52,122 115,438 115,438
Including: investment profit for
joint-run business and joint venture
Operating profit 745,636,917 19,089,549 501,575,048 22,608,276
Add: Non-operating income 888,203 421,480 467,342 173,512
less: non-operating expenditures 514,157 2,050 551,097 3
Including: non-current assets disposing
loss
Total profit 746,010,963 19,508,979 501,491,293 22,781,784
Less: income tax expenses 183,464,223 4,918,150 123,086,904 6,565,568
Net profit 562,546,740 14,590,829 378,404,389 16,216,216
Net profit of parent company's owners 562,581,659 14,590,829 378,135,484 16,216,216
Minority shareholder profit and loss
-34,918 268,905
EPS
Basic EPS 1.07 0.72
Diluted EPS 1.07 0.72
Other Comprehensive Income
Comprehensive Income 562,546,740 14,590,829 378,404,389 16,216,216
Comprehensive Income of parent
company 562,581,659 14,590,829 378,135,484 16,216,216
Comprehensive Income of minority
shareholders -34,918 268,905
4.3 Cash Flow Statement
Yantai Changyu Wine Pioneer Co., Ltd. Jan. 2011 – March 2011 Unit: CNY
Three months ended 31 Three months ended 31
March 2011 March 2010
Item Parent Parent
Consolidated company Consolidated company
amount amount amount amount
1. Cash flows from operating activities:
Cash received from sales of goods and
rending of services 2,450,730,868 506,217,511 1,906,248,637 520,836,693
Tax refund received 4,506,575 1,765,890
Other cash received related to operating
activities 39,581,571 934,283,827 13,050,779 5,264,302
Subtotal of cash flows of operating
activities 2,494,819,014 1,442,267,229 1,919,299,416 526,100,995
Cash paid for goods and services 443,608,869 384,955,700 463,103,834 352,542,782
Cash paid to and on behalf of employees 105,863,409 38,684,926 94,482,198 42,476,296
Cash paid for taxes and expenses 650,575,171 98,939,301 533,462,570 109,405,490
Other cash paid related to operating
activities 210,588,599 128,055,339 369,824,691 40,665,101
Sub-total of cash outflows of operating
activities 1,410,636,049 650,635,266 1,460,873,293 545,089,669
Net cash flow from operating activities 1,084,182,965 791,631,963 458,426,123 -18,988,674
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term
of over 3 months 112,671,943 107,671,943
Cash received from obtaining investment
profit 54,515 7,180,727 115,438 447,544,712
Cash received from interest income 1,417,169 1,417,169
Net cash received from disposal of fixed
assets, intangible assets and other long-term
assets
Net cash received from disposal of branch
and other business unit
Other cash received related to investing
activities
Subtotal of cash flows of investment
activities 54,515 7,180,727 114,204,550 556,633,824
Cash paid to acquire fixed assets, intangible
assets and other long-term assets 98,995,305 10,207,563 60,585,222 671,260
Fixed deposit with the term of over 3
months 129,086,026 129,086,026
Cash for investment
Net cash paid to acquire branch and other
business unit
Other cash paid related to investment
activities
Subtotal of cash outflows of investment
activities 228,081,331 139,293,589 60,585,222 671,260
Net cash flow from investing activities -228,026,816 -132,112,862 53,619,328 555,962,564
3.Cash flow from financing activities
Cash received from acquiring investment
Including: cash received from acquiring
minority shareholders investment by branch
Cash received from acquiring loans
Other cash received related to financing
activities
Subtotal cash flows of financing activities
Cash paid to pay debts 220,000,000 220,000,000
Cash paid to distribute dividend, profit or
pay interest 2,586,916 1,778,850
Including: dividend and profit paid to
minority shareholders by branch
Other cash paid related to financing
activities
Subtotal of cash outflows of financing
activities 222,586,916 221,778,850
Net cash flow from financing activities -221,778,85
-222,586,916 0
4. Influences of exchange rate fluctuation
on cash and cash equivalents
5. Net Increase in cash and cash
equivalents 856,156,149 659,519,101 289,458,535 315,195,040
Add: balance at the beginning of the
period of cash and cash equivalents 2,489,804,162 1,898,488,544 1,998,681,278 1,159,666,918
6.Balance at the end of the period of cash
and cash equivalents 3,345,960,311 2,558,007,645 2,288,139,813 1,474,861,958
4.4 Audit Report
Not audited
5. Other information
5.1 the possession and repayment of non-operating capital by the
majority shareholder and its subsidiaries
( √ ) not applicable
5.2 Irregular External Guarantee
( √ ) not applicable
Yantai Changyu Wine Poineer Co., Ltd.
Board of Director
April 25th , 2011
