Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Yantai Changyu Pioneer Wine Co. Ltd.
2016 Semi-annual Report
2016-Final 03
August 2016
1
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Contents
I、Important Notice, Contents and Definition................................................................................3
II、Brief Introduction for the Company ....................................................................................... 5
III、Summary of Accounting Data and Financial Indicators ......................................................7
IV、Board of Directors’ Report ....................................................................................................10
V、Major Issues ............................................................................................................................. 22
VI、Changes in Shares and the Shareholders’ Situation ........................................................... 31
VII、Relative situation for preferred shares................................................................................. 35
VIII、Situation for Directors, Supervisors, Senior Management ............................................. 36
IX、Financial Report .....................................................................................................................37
X、Catalogue of Documents for Future Reference.....................................................................130
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
I. Important Notice, Contents and Definition
The Board of Directors, the Board of Supervisors ， directors, supervisors & senior
management of the Company collectively and individually accept full responsibility for the
truthfulness ， accuracy and completeness of the information contained in the semi-annual
report and there are no unfaithful facts, misleading statements or significant omissions.
Except the following director, other directors have personally attended the Board of Directors’
meeting for deliberating the semi-annual report.
Name of director not Position of director not Reason of not
Name of
personally attending the personally attending the personally attending
entrusted
Board of Directors’ Board of Directors’ the Board of Directors’
person
meeting meeting meeting
Mr. Sun
Mrs. Dai Hui Director Evection
Liqiang
The Company has no plan to distribute cash dividends and bonus shares; capital reserve will
not be transferred to equity in the semi-annual.
Mr. Sun Liqiang (Chairman of the Company), Mr. Leng Bin (Chief Financial Officer) and Mr.
Jiang Jianxun (Financial Manager) assure the truthfulness, accuracy and completeness of the
financial report in the semi-annual report.
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Definition
Definition Item Refers to Definition Content
Company/The Company Refers to Yantai Changyu Pioneer Wine Co. Ltd.
Changyu Group/Controlling Refers to
Yantai Changyu Group Co. Ltd.
shareholder
CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
Deloitte Hua Yong Certified Public Deloitte Hua Yong Certified Public Accountants
Accountants Co., LTD Co., LTD (special general partnership)
CNY Refers to Chinese Yuan
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
II、Brief Introduction for the Company
1. Company’s information
Abbreviation of the Shares: Changyu A、Changyu B Code number of the Shares 000869、200869
Abbreviation of the Shares
-
after alteration
Place of listing of the Shares Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese name 张裕
Legal Name in English YANTAI CHANGYU PIONEER WINE COMPANY LIMITED
Abbreviation of English name CHANGYU
Legal Representative Mr. Sun Liqiang
2. Contact person and information
Secretary to the Board of Authorized Representative of the
Directors Securities Affairs
Name Mr. Qu Weimin Mr. Li Tingguo
Address 56 Dama Road, Yantai, Shandong, China 56 Dama Road, Yantai, Shandong, China
Tel 0086-535-6633658 0086-535-6633656
Fax 0086-535-6633639 0086-535-6633639
E-mail quwm@changyu.com.cn stock@changyu.com.cn
3. Other information
1)、The Company’s contact information
Whether there is any change for the Company’s registered address, office address, post code,
website and e-mail address during the report period.
□Available V Not available
There is no any change for the Company’s office address, post code, website and e-mail address
during the report period, please see 2015 annual report for more details.
2)、Information disclosure and filing Location
Whether there is any change for the information disclosure and filling location during the report
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
period.
□Available V Not available
There is no any change for the newspapers in which the Company’s information is disclosed,
website assigned by CSRC to carry the semi-annual report and the filing location during the report
period, please see 2015 annual report for more details.
3)、Registration changes
Whether there is any change for the registration during the report period.
V Available □Not available
Registration Registration Business license Tax registration Organization
date place registration number code
number
Registration at October Shandong 3700000180601 National tax: 26710003-5
the beginning 14th, 2013 Administration 22 3706021650033
of report for Industry & 8-1;
period Commerce Local tax:
3706012671000
35
Registration at June 17th, Shandong 9137000026710 9137000026710 9137000026710
the end of 2016 Administration 00358 00358 00358
report period for Industry &
Commerce
Inquiry date of
appointed
website no
disclosed in
interim
announcement
(if have)
Inquiry index
of appointed
website
disclosed in no
interim
announcement
(if have)
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
III、 Summary of Accounting Data and Financial Indicators
1. Key accounting data and financial indicators
Whether the Company makes retroactive adjustments or restates the accounting data of previous
fiscal years because of changes of accounting policy and/or accounting errors.
□Yes V No
More or less than
In the same period of
Item In the report period the same period of
last year
last year(%)
Business revenue (CNY) 2,753,032,799 2,825,793,250 -2.57%
Net profit attributed to the
shareholders of the listed 695,021,847 746,060,248 -6.84%
company (CNY)
Net profit attributed to the
shareholders of the listed
company after deducting the 678,478,321 739,432,003 -8.24%
irregular profit and loss (CNY)
Net cash flows from the
682,748,369 927,163,060 -26.36%
operating activities (CNY)
Basic earnings (CNY) per share 1.01 1.09 -7.34%
Diluted earnings (CNY) per
1.01 1.09 -7.34%
share
Return on net assets (%) 8.78% 10.11% -1.33%
At the end of the At the end of last More or less than
report period year the end of last year
Total assets (CNY) 11,284,325,048 10,344,211,461 9.09%
Net Assets attributed to the
shareholders of the listed 8,265,370,769 7,564,099,003 9.27%
company (CNY)
2. Accounting data difference between domestic and foreign accounting standards
1) 、 Difference in net profit and net asset disclosed in the financial report under the PRC accounting
standards and international accounting standards.
V Available □Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Unit: CNY
Net profit belonged to Net asset belonged to shareholders
shareholders of listed of listed company
company
Amount in Amount in Amount at the Amount at the
current period last period end of this beginning of this
period period
Based on
Chinese
695,021,847 746,060,248 8,265,370,769 7,564,099,003
accounting
standard
Items and amount adjusted based on international accounting standard
Based on
international
695,021,847 746,060,248 8,265,370,769 7,564,099,003
accounting
standard
2) 、 Difference in net profit and net asset disclosed in the financial report under the PRC accounting
standards and foreign accounting standards.
□Available V Not available
There is no difference in net profit and net asset disclosed in the financial report under the PRC
accounting standards and foreign accounting standards during the report period.
3)、Explanation of difference in accounting data based on Chinese and international accounting standards
□Available V Not available
3. Details of irregular profit and loss
V Available □Not available
Unit: CNY
Item Amount Explanation
Gain on disposal of non-current assets, including
-15,485
the reversal of accrued impairment provision
Tax return, deduction and exemption with
12,116,257
unauthorized approval or no official document of
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
approval
Government grants credited in profit and loss
(except for those recurring government grants
that are closely related to the entity's operation, 6,029,617
in line with related regulations and have proper
basis of calculation)
Other non-operating expense and income 3,459,361
Less: Income tax effect 5,046,224
Total 16,543,526 -
The reasons shall be made clear and definitely as to the non-recurring profit and loss that the Company
has defined by virtue of the Explanatory Announcement on Public Company’s Information Disclosure
No.1 - Non-recurring Profit and Loss and as to regarding the non-recurring profit and loss as recurrent
profit and loss as specified in the Explanatory Announcement on Public Company’s Information
Disclosure No.1 - Non-recurring Profit and Loss.
□Available V Not available
There is no situation regarding the non-recurring profit and loss as defined and specified in the
Explanatory Announcement on Public Company’s Information Disclosure No.1 - Non-recurring
Profit and Loss as recurrent profit and loss.
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
IV、Board of Directors’ Report
1. Summarization
During the report period, the need for high-end products in domestic wine industry was still weak, but
the consumer demand began to increase mildly in some regions; middle-and-low-end wines suitable for
the public and with a high sales volume in festival and holidays didn’t have a significant fluctuation.
Overall, there was still strong competition existing in domestic wine market and the Company was
facing a big operating pressure and challenge. Facing quite a lot of external disadvantages, the
Company insisted on focusing on the market, adjusted marketing strategy, perfected sales channel and
product structure, optimized the market layout and promoted sales of products with all strength,
ensuring the stability of business performance and respectively accomplishing the sales revenue of
CNY2753.03million with a year-on-year decrease of 2.57% as well as the net profit of
CNY695.67million with a year-on-year decrease of 6.75%.
2. Analysis to main business
1) Period comparison of main financial data
Unit: CNY
In the same
In the report More or
period of last Reason for changes
period less (%)
year
Mainly decreased sales volume
Operating revenue 2,753,032,799 2,825,793,250 -2.57%
of products
Mainly decreased sales volume
Operating cost 902,734,104 932,522,743 -3.19%
of products
Sales expense 650,737,234 653,425,516 -0.41% -
Mainly increased salary of
Management management, administrative
122,695,845 119,770,340 2.44%
expense expense, depreciation cost,
building tax and other taxes
Mainly decreased interest
income of bank deposit and
Financial expense 10,988,233 -3,880,903 383.14%
increased interest expenditure
of bank loan
Mainly decreased net profit on
Income tax expense 238,715,481 245,727,101 -2.85%
year-on-year basis
R&D investment 5,546,825 5,534,562 0.22% -
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Net amount of cash Mainly increased cash paid for
goods purchased and labor
flow generated in 682,748,369 927,163,060 -26.36%
service received on
operating activities year-on-year basis
Net amount of cash Mainly decreased cash outflow
generated by investment
flow generated in -397,659,283 -432,181,002 7.99%
activities including purchase
investment activities and building of fixed assets
Net amount of cash
Mainly increased cash received
flow generated in 259,718,424 -23,919,692 1,185.79%
through bank loan
financing activities
Net increased Mainly increased net amount of
amount of cash and 551,693,393 470,554,249 17.24% cash flow generated by
cash equivalents financing activities
Whether there is any great change for the Company’s profit structure or profit source during the report
period
□Available V Not available
There is no great change for the Company’s profit structure or profit source during the report
period.
Whether there is any future development and planning disclosed in the public Company’s shares
prospectus, collecting prospectus and asset restructuring report during the report period.
□Available V Not available
The Company does not disclose any future development and planning in the public Company’s
shares prospectus, collecting prospectus and asset restructuring report during the report period.
2) Review and summary of the progress situation during the report period of the Company’s
business plan disclosed in earlier stage
Firstly, the Company insisted on focusing on the market and strived to promote the integrated
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
development of multi-kinds of liquor. During the report period, the Company insisted the strategy
of “mainly focusing on wine and fully developing multi-kinds of liquor”, further improved the sales
system construction and marketing personnel assessment methods, adjusted sales structure and
personnel in some regional markets, increasing the capacity of sales team; consolidating the market
position of middle-and-high-end products, such as chateau wines and Jiebaina, through cultivating
principal distributors in combination with full-time sales personnel; quickened the sales network
layout of brandy and optimized the brandy product structure, making brandy achieve big
breakthrough in some weak markets; energetically promoted the sales of imported products and
increased the new development power owing to the favorable performance of overseas acquired
enterprises’ brands as well as significant increase in sales of import products; orderly proceeded the
pre-marketing preparatory work of new products, such as small-volume wine, sparkling wine with
low alcohol and Tinlot chateau wine and so on, and owned the capability for further economic
development.
Secondly, the Company strengthened the control of main costs and expenses to ensure the asset
safety. During the report period, the Company conducted special audit for key expenses, such as
processing charge, transportation fee, fuel fee, repair charge and greening fee and so on, conducted
the audit for input and output of self-supporting grape bases and conducted the closing audit for
investment projects; strengthened the financial management and audit supervision, ensuring the
effective implementation of each regulation and effectively controlling the Company’s main costs
and expenses; built and improved the management system and relevant regulation of overseas
subsidiaries, ensuring the asset safety and promoting the healthy development.
Thirdly, the Company strengthened the construction of grape bases, striving to reduce the cost of
grape materials and improve the quality of grapes. During the report period, the Company
strengthened the input-and-output accounting and classified management of grape bases,
reorganized the current grape bases and continued enhancing the “Large-scale, Standardization,
Mechanization” construction of grape bases, favorably controlling the cost of grape cultivation and
improving the quality of materials.
Fourthly, the Company steadily boosted the construction of projects under construction,
strengthened the project management, reasonably arranged the construction progress and assured
the project quality; strictly controlled the newly-commenced project and avoided investment risks.
During the report period, the Company preferably controlled the investment amounts of projects
under construction and ensured the construction progress and quality through strengthening the
project management, scientifically arranging construction progress, strictly conducting budget
requirements and fully implementing the cost audit and the audit of final accounts; conformed to the
changes of business environment, re-demonstrated the projects that have not been constructed,
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
cautiously made investment decision and postponed the start of some investment projects so as to
avoid investing too early and appearing significant investment risk.
3) The company’s main work and measures during the second half year of 2016
Firstly, the Company will intensify the system construction of principal distributors and keep
strengthening the sales of middle-and-high-end products, such as chateau wines, Jiebaina and brandy
above three-star; keep enlarging the promotion of Zuishixian and Noble Rot and cultivating principal
distributors in order to bring consistent and health development of middle-and-low-price products;
implement “less employee, more salary” in some markets to improve the capability of sales team;
introduce new products, such as sparkling wine, Tinlot chateau wine and small-volume products and so
on, increase the sales of Atrio, Mirefleurs, Donelli, Koyac and other brands’ products, and promote to
complete the development exclusively for E-business products so as to form a new market growth point;
take full use of new media and strengthen the communication with young people in order to build
consumers’ new cognition (internationalization, young and fashion-orientation) to Changyu brands and
increase the brand influence.
Secondly, the Company will scientifically arrange the construction progress of investment projects,
strive to complete the construction and put into operation on schedule; collect project fund through
multi-channels, improve the project management, increase the efficiency of fund use and make great
efforts to control the construction costs.
Thirdly, the Company will conduct the production facilities construction as well as the equipment
installation and commissioning work of main part in Yantai Changyu International Wine City (Yantai
Changyu Industrial Park), strive to put it into operation before this September; further eliminate
inefficient capacities, achieve the seamless connection between new productivity and old productivity,
ensure the link between the production and sales, increase the production efficiency and reduce the
production costs.
Fourthly, the Company will scientifically make grape procurement plans and implementation scheme,
organize and deploy resources all around, fully complete the procurement of grape materials; consider
each party’s interest, further prefect the grape-pricing mechanisms and reasonably determine the grape
procurement price so as to assure the supply of sufficient and superior materials.
3. Structure of main businesses
Unit: CNY
Operating Operating Gross Increase or Increase or Increase or
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
revenue cost profit decrease of decrease of decrease of
(%) operating revenue operating cost gross profit
over the same over the same over the same
period of last period of last period of last
year (%) year (%) year
Sector
Wine and
alcoholic 2,753,032,799 902,734,104 67.21% -2.57% -3.19% 0.15%
beverages
Product
Wine 2,177,413,496 703,323,461 67.70% -3.61% -4.49% 0.30%
Brandy 540,377,902 183,423,536 66.06% 4.19% 3.31% 0.29%
Region
Domestic 2,624,756,459 810,482,569 69.12% -3.52% -7.13% 1.20%
4. Analysis to core competitiveness
Compared with the participants in the arena of the Chinese wine sector, we believe that the Company is
provided with the following advantages:
Firstly, the Company has been enjoying a well-known wine brand since 120-odd years, “Changyu”,
“Jiebaina” and “AFIP” are Chinese famous trademarks that have strong influence and good reputation.
Secondly, the Company has set up a nationwide marketing network, formed a “three-level” marketing
network system mainly composed of the Company’s salesmen and dealers, possessed the strong
marketing ability and market exploitation ability.
Thirdly, the Company has already had strong research strength and a product R&D system, owned the
only “State-level Wine R&D Center”, made mastery of advanced winemaking technology and
production processes, been powerful enough in product innovation and established a perfect quality
control system.
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Fourthly, the Company is in possession of a lot of grape-growing bases to meet its future development,
having developed a great deal of vineyards in the most suitable areas for wine grape growing such as in
Shandong, Ningxia, Xinjiang, Liaoning, Hebei and Shaanxi, whose scales and structures have generally
met the Company’s needs for development.
Fifthly, the Company has a great variety of products composed of all grades, its wine, brandy and
sparkling wine of over 100 sorts can meet different consumers’ demands. The Company has taken the
lead in the domestic wine sector through rapid development in the past 10-odd years and has possessed
comparative superiority in the future competition.
All in all, the Company has built up a strong core competitive edge and obtained and maintained a
relatively dominant position in the long-term market competition.
5. Analysis to investments
1)、Situation for equity investment abroad
① Situation for investment abroad
□Available V Not available
During the report period, the company did not have investment abroad.
② Situation for holding equity of financial enterprises
□Available V Not available
During the report period, the company did not hold any equity of financial enterprises.
③ Situation for security investment
□Available V Not available
During the report period, there were no security investments.
④ Situation for holding equity of other listed companies
□Available V Not available
During the report period, the company did not hold any equity of other listed companies.
2)、Trust management, derivatives investment and entrusted loans
① Situation for trust management
□Available V Not available
During the report period, the company did not have trust management.
② Situation for derivatives investment
□Available V Not available
During the report period, the company did not have derivatives investment.
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
③ Situation for entrusted loans
□Available V Not available
During the report period, the company did not have entrusted loans.
3)、Use of raised capital
□Available V Not available
During the report period, there were no use of raised capital.
4)、Analysis to the major subsidiaries and joint stock companies
V Available □Not available
Information about the major subsidiaries and joint stock companies
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Unit: CNY
Registered Business Operating
Company name Company type Industry Main products or services Total assets Net asset Net profit
capital revenue profit
Yantai Changyu- To research, produce and sell wine and
Wine and alcoholic
Castel Wine Chateau Co. Subsidiary sparkling wine as well as the tourism USD 5 million 254,982,086 61,415,854 25,120,685 -1,475,546 -1,835,054
LTD. beverages industry
service
Langfang Castel- Joint stock Wine and alcoholic USD
To produce and sell wine 44,794,211 36,595,384 23,893,566 1,517,141 1,141,604
Changyu Wine Co. LTD. company beverages industry 6,108,818.00
Beijing Chateau Subsidiary Wine and alcoholic To research, produce and sell brandy and CNY 110
733,955,582 171,274,185 96,780,881 27,701,173 22,140,264
Changyu AFIP Global beverages industry wine million
Chateau Liaoning Changyu Subsidiary Wine and alcoholic CNY 26.30
Ice Wine Co., Ltd. To produce ice wine 89,524,743 54,602,855 16,400,216 -3,221,689 -3,220,773
beverages industry million
Xinjiang Tianzhu Winery Subsidiary Wine and alcoholic To plant grape, produce and sell grape CNY 75
Co., Ltd. 178,930,460 125,825,796 71,414,395 10,418,182 8,855,720
beverages industry juice, bulk wine and fruit wine million
Spanish DICOT Subsidiary Wine and alcoholic To produce and manage wine and other EUR
PARTNERS, S.L. 414,758,775 135,074,799 138,454,701 2,737,024 2,677,035
beverages industry liquor 2,385,732.00
5)、Important projects financed with non-raised capital
V Available □Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Unit: CNY’0000
Actual
Total accumulation
Investment
Planned investment Project Disclosure
Project Name in the report Project benefits
Investme until the end progress Date
period
nt of the report
period
Construction of 2016.04.29
Changyu International Wine City 196,303 22,800 90,163 90.00% ---
blending and cooling Center
Construction of 2016.04.29
Changyu International Wine City 116,807 20,900 69,069 90.00% ---
Bottling Center
Construction of 2016.04.29 http://www.c
ninfo.com.c
Changyu International Wine 37,468 9,000 28,944 100.00% ---
n/cninfo-ne
City Logistics Center w/disclosure
/szse_main/
Construction of Changyu Vine 2016.04.29
bulletin_det
20,000 1,600 10,676 80.00% ---
and Wine Research Institute ail/true/1202
265203?ann
Construction of Treasure Wine 2016.04.29
14,545 3,500 8,299 70.00% --- ounceTime=
Chateau
2016-04-29
Construction of Koyac Brandy 2016.04.29
16,530 1,100 10,900 70.00% ---
Chateau
Investment in landscaping 5,000 980 4,844 85.00% --- 2016.04.29
Tourist project of Changyu 2016.04.29
100,000 3,000 3,000 0.00% ---
International Wine City
Construction of pioneer 2016.04.29
19,063 959 4,514 90.00% ---
franchised store
Total 525,716 63,839 230,409 -- --
6. Forecast for the operation achievements from January to September of 2016
Caution and explanation for the prediction that the cumulative net profit from the beginning of the
year to the end of next report period could be in a loss or there will be in a great change comparing
with the same period of last year.
□Available V Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
7. Explanation from the board of directors and the board of supervisors for the “Non-standard Audit
Report” issued by the accountant firm
□Available V Not available
8. Explanation from the board of directors for the “Non-standard Audit Report” of last year
□Available V Not available
9. Implementation of profit distribution during the report period
The implementation or adjustment for the profit distribution policies during the report period,
especially the cash dividend plan and the scheme of increasing equity with capital reserve
V Available □Not available
On July 1st, 2016, the Company disclosed the Announcement of Dividend Distribution for the year
2015, according to which the Company would take the total capital stock 685,464,000 shares
(453,460,800 shares of Stock A and 232,003,200 shares of Stock B) at that time as a cardinal
number to distribute CNY5 in cash for per 10 shares to all stockholders (tax included; after
deduction of taxes, as to Stock A, QFII, RQFII as well as the individuals holding the restricted
reform-related shares, the restricted new shares and the investment fund holders would enjoy
CNY4.5 per 10 shares; the differential dividend tax rates would be adopted for the individuals
holding the non-restricted reform-related shares, the non-restricted new shares and the unlimited
shares, CNY5 for per 10 shares in advance and afterwards depending on the investors’ reduction of
shares, making up the difference according to the actual shares held on the equity registration day;
as to the dividend tax of securities investment funds holding the non-restricted reform-related shares,
the non-restricted new shares and the unlimited shares, 10% of fund shares will be collected for
Hong Kong investors while the differential dividend tax rates would be adopted for inland investors;
as to the non-resident enterprises other than QFII and RQFII, the Company would neither withhold
nor pay the income tax on their behalf but the taxpayers should pay the tax in the place where the
income is received. As to Stock B, the non-resident enterprises would enjoy cash dividend CNY4.5
for per 10 shares. The differential dividend tax rates would be adopted for the inland (overseas)
individual stockholders, CNY5 for per 10 shares in advance and afterwards depending on the
investors’ reduction of shares, making up the difference according to the actual shares held on the
equity registration day.).
The share registration day of Stock A was on July 6th, 2016 and the ex-dividend day was on July 7th,
2016.
The last trading day of B Stock was on July 6th, 2016, the share registration day was on July 11th,
2016 and the ex-dividend day was on July 7th, 2016.
The total capital stock at the share registration day and the ex-dividend day are all 685,464,000
shares (453,460,800 shares of Stock A and 232,003,200 shares of Stock B).
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
The distribution objects are the Company’s all Stock A holders who registered at the China
Securities Depository and Clearing Corporation Limited Shenzhen Company (hereinafter referred to
as “China Clearing Shenzhen Company”) after the market closing of the Shenzhen Stock Exchange
in the afternoon of July 6th, 2016 and the Company’s all Stock B holders who registered at the
China Clearing Shenzhen Company after the market closing of the Shenzhen Stock Exchange in the
afternoon of July 11th, 2016.
The cash dividend for Stock A holders that the Company entrusted China Securities Depository and
Clearing Corporation Limited Shenzhen Company to distribute was directly transferred to their
accounts via securities service company (or other depository department) on July 7th, 2016.
The cash dividend for Stock B holders was directly transferred to their accounts via securities service
company or other depository department on July 11th, 2016.
The cash dividend enjoyed by Yantai Changyu Group Co., Ltd. was directly paid by the Company at
the same time.
Special explanation
Whether it is in accordance with the requirements of the regulation in the Articles of Association and the resolution of Yes
shareholders
Whether the distribution standard and proportion is clear and definite Yes
Whether the relative decision process and mechanism is complete Yes
Whether the independent directors perform their responsibilities and play the roles. Yes
Whether the small and middle shareholders have the chance to express their advices and appeals, as well as their Yes
lawful right and interest is in an enough protection.
Whether it is legal and transparent for the condition and process while adjusting and amending the cash dividends Yes
distribution policy.
10. Preliminary schemes of profit dividend and increasing equity with capital reserve during the report
period
□Available V Not available
There are no schemes of paying cash dividend, bonus share and increasing equity with capital during
the semi-annual period.
11. The Company’s Receptions, Studies and Visits
V Available □Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Type of Main discussed contents
Reception Reception
Reception time reception Reception object and the information
place way
object provided
Ms. Huang Zhaolei from UBS Securities Current business
Meeting
Company Limited ; Ms. Ning Jing and Mr. operation
May 5th, 2016 room of the Field survey Institution
Zhou Bo from Fidelity (HK) Company situation and
Company
Limited other issues
Current business
Meeting
Mr. Lin Chuanqin from Uni-President operation
May 12th, 2016 room of the Field survey Institution
Securities Investment Trust Company Limited situation and
Company
other issues
Ms. Qu Shaoping from Guotai Junan
Securities Company Limited; Mr. Zhang
Shuai from Zhongtai Securities Company
Limited; Mr. Long Yufei from Zhongou Fund
Management Company Limited; Mr. Zhang Current business
Meeting
Yansong from Industrial Securities Asset operation
May 26th, 2016 room of the Field survey Institution
Management Company Limited; Ms. Kong situation and
Company
Mengyai from Haitong Securities Company other issues
Limited; Mr. Shi Jianping from Aijian
Securities Limited Liability Company; Mr.
Zhang Qiaoxin from China Securities
Company Limited
Current business
Meeting Mr. Wang Xiaodong, Ms. Li Qing and Mr.
operation
June 24th, 2016 room of the Field survey Institution Wang Nan from Huatai Securities Company
situation and
Company Limited
other issues
21
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
V、Major Issues
1. Corporate Governance Situation of the Company
The Company has according to relevant national laws and rules including the “Company Law of the
People’s Republic of China”, “Securities Law of the People’s Republic of China” , “Guidelines on
Corporate Governance of Listed Companies”, and also other laws and rules , established and
constantly improved its legal entity structure, legally conducted its activities. Currently, the Company’s
corporate governance is in compliance with the Company Law and the relevant provisions of China
Securities Regulatory Commission.
2. Litigation Issue
Material litigation and arbitration
□ available √not available
There are no material litigation and arbitration during the report period.
Other Litigation Issue
□ available √not available
3. Media’s doubts
□ available √not available
There are no common doubts issued by Media during the report period.
4. Bankruptcy reorganization
□ available √not available
There are no related issues of bankruptcy reorganization happened during the report period and until
the report period.
5. Transaction in Assets
1)、Acquisition of assets
□ available √not available
There is no acquisition of assets during the report period and until the report period.
2)、 Assets for sale
□ available √not available
There are no assets for sale during the report period and until the report period.
3)、Business merger
√available □not available
The Company’s wholly owned subsidiary – Francs Champs Participations signed “Equity Transfer
Agreement” with French Castel Company in 2015, purchasing 90% of Chateau Mirefleurs’s equity
22
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
held by French Castel Company at the price of EUR3.33million. The merger has been completed
within the report period. For detailed situation, please see “8、Changes in scope of consolidation” in
Financial Report of this report.
6. Implementations and influences of Company’s equity incentive
□ available √not available
There are no plans and implementations of Company’s equity incentive during the report period.
23
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
7. Important related transactions
1)、Related transactions in relation to routine operations
√available □not available
Proportion Approved Whether
Market price
Pricing Amount of in the transaction or not Settlement
Type of Content of Price of of
principle of related same kind credit(CNY’ exceed method of Date of
Related party Interrelationship related related related securable Disclosure index
related transaction of 0000) approved related disclosure
transaction transaction transaction same
transaction (CNY‘0000) transaction credit transaction
transaction
(%)
Yantai Parent Co. Leasing assets Leasing On the base Agreement
Changyu storage of market price
Group Co. price, 292.9 0.32% 585.8 No Cash — 2016.04.29
Ltd. negotiated
pricing
Yantai Parent Co. Leasing assets Leasing On the base Agreement
http://www.cninfo.c
Changyu buildings of market price
om.cn/cninfo-new/d
Group Co. and facilities price, 0 0% 309.3 No Cash — 2016.04.29
isclosure/szse_main/
Ltd. negotiated
bulletin_detail/true/
pricing
1202265212?annou
Yantai Under the same Selling Selling On the base Agreement
nceTime=2016-04-2
Changyu Parent Co. commodities liquor of market price
9
Wine Culture products price, 766 0.28% 1,110 No Cash — 2016.04.29
Museum negotiated
Company pricing
Yantai Under the same Selling Selling On the base Agreement
Changyu Parent Co. commodities liquor of market price 500 0.18% 1,310 Yes Cash — 2016.04.29
Window of products price,
24
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Wine City Co. negotiated
pricing
Yantai Under the same Selling Selling On the base Agreement
Changyu Parent Co. commodities liquor of market price
Zhongya products price, No
Medicine & negotiated 206 0.07% 218 Cash — 2016.04.29
Healthy pricing
Liquors Co.,
Ltd
Yantai Under the same Selling Supplying On the base Agreement No.
Shenma Parent Co. commodities water, power of market price
Packaging and gas price, 77 0.03% 178 Cash — 2016.04.29
Co.Ltd. negotiated
pricing
Yantai Under the same Purchasing Purchasing On the base Agreement No
Shenma Parent Co. and Consign package of market price
Packaging processing materials price, 7,191 7.97% 19,031 Cash — 2016.04.29
Co.Ltd. packing negotiated
materials pricing
Yantai Under the same Purchasing Purchasing On the base Agreement No
Changyu Parent Co. commodities liquor of market price
Wine Culture or services products’ price, 464 0.51% 450 Cash — 2016.04.29
Museum derivatives negotiated
Company pricing
Yantai Under the same Purchasing Purchasing On the base Agreement No
Changyu Parent Co. commodities liquor of market price
Window of or services products’ price, 30 0.03% 62 Cash — 2016.04.29
Wine City Co. derivatives negotiated
pricing
Yantai Under the same Purchasing Purchasing On the base Agreement 555 0.61% 1,173 No Cash — 2016.04.29
25
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Changyu Parent Co. commodities liquor of market price
Zhongya or services products’ price,
Medicine & negotiated
Healthy pricing
Liquors Co.,
Ltd
Yantai Parent Co. Intangible Permission On the base Agreement No
Changyu assets to use the of market price
Group Co. licensed use trademark price, 4,627 100% 8,,908 Cash — 2016.04.29
Ltd. negotiated
pricing
Yantai Parent Co. Intangible Permission On the base Agreement No
Changyu assets to use of market price
Group Co. licensed use patents price, 2.5 100% 5 Cash — 2016.04.22
Ltd. negotiated
pricing
Total -- -- 14,711.4 -- 33,340.1 -- -- -- -- --
The details of the large sales returns No.
The total amount of the transaction will be expected No.
according to its category and its actual performance during
the report period (if have)
The reasons of big differences between the transaction price No.
and the market reference price(if available )
2)、 Related transactions in asset procurement and sale
□ available √not available
There are no related transactions in asset procurement and sale during the report period.
3)、Important related transactions in joint external investment
□ available √not available
26
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
There are no important related transactions in joint external investment during the report period.
27
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
4)、Record of related credits and liabilities
□ available √not available
There is no record of non-operating related credits and liabilities.
5)、Other important related transactions
□ available √not available
There are no other important related transactions in the report period.
8. Controlling shareholder and related party in funds occupation situation of non-operating of
the Listed Company
□ available √not available
There are no situation in controlling shareholder and related party in funds occupation of
non-operating of the Listed Company.
9. Major and important contracts and execution results
1)、Trusteeship, contract and leasehold issues
① Trusteeship situation
□ available √not available
There are no trusteeships happened during the report period
② Contract situation
√available □not available
The explanation of Contract situation
During the report period, about the contract operation situation, please see Annex 7 “Notes to
consolidated financial statement” in the Financial Report of this report.
Project in gains and losses for the Company to achieve more than 10% of the total profit
□ Available √ Not Available
There are no contract projects in gains and losses for the Company to achieve more than 10% of the
total profit during the report period.
③Leasehold situation explanation
√available □not available
On 1 January 2012, the Company renewed the Space Lease Agreement with the controlling
st
shareholder Changyu Group, the Company leased the space with 57749.77 square meters located at
174 Shihuiyao Road, Zhifu District,Yantai City and the space with 3038 square meters located at 56
Dama Road, Zhifu District, Yantai City, which are all under the name of controlling shareholder.
The rent of the above spaces per year is CNY 5.858 million with a period of 5 years from 1st
January 2012 to 31st December 2016.
Project in gains and losses for the Company to achieve more than 10% of the total profit
□ Available √ Not Available
There are no leasehold projects in gains and losses for the Company to achieve more than 10% of
the total profit during the report period.
28
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
2)、Guarantee situation
□ available √not available
There are no guarantees situation during the report period.
3)、 Other important contracts
□ available √not available
There are no other important contracts during the report period.
4)、 Other substantial transaction
□ available √not available
There is no other substantial transaction during the report period.
10. The commitments of the Company or shareholders of the Company holding more than
5% during the report period or until the report period
√available □not available
Commitment Commitment Commitment
Commitments Commitment content Implementation
Party time period
Commitments at share reform - －
Commitments made in acquisition
- - - -
report or equity changes report
Commitments at asset restructuring - - - -
Yantai Changyu Has been
Solving Intra-industry competition 1997.05.18 Forever
Commitments at the initial public Group Co, Ltd performed
offering or refinancing Yantai Changyu Clearing Purpose of trademark Has been
1997.05.18 Forever
Group Co., Ltd royalty performed
Commitments made to the minority
- - - -
shareholders of the Company
Commitment under timely
Yes
implementation or not
Specific reasons of not completing
the implementation and the next No
step
11. The appointment and dismissal of certified public accountants
During the report period, the Company reappoints Deloitte Hua Yong Certified Public Accountants
Co., LTD as the Company’s auditor in 2016.
29
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
12. Punishment and rectification
□ available √ not available
There is no punishment and rectification situation happened during the report period.
13. Withdrawal risk revelation of violating laws and rules
□ available √ not available
There is no withdrawal risk revelation of violating laws and rules during the report period.
14. Explanation for other significant matters
□ available √ not available
There are no other significant matters during the report period.
15. Corporate bonds situation
Whether there are corporate bonds which are issued publicly and listed at stock exchanges, and
which are not yet due at the authorized disclosure date of semi-annual report or haven’t not been
cashed in full amount at the expiry date.
No
30
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
VI、Changes in Shares and the Shareholders’ Situation
1. Changes in shares
Unit: Share
Amount before this change Change (+, -) Amount after this change
Transfer
Percentage Allot Distribut other capital Sub Percentage
Amount new e bonus others Amount
% to share total %
share share
capital
2、Unrestricted shares 685,464,000 100% 685,464,000 100%
(1)、A shares 453,460,800 66.15% 453,460,800 66.15%
(2)、B shares 232,003,200 33.85% 232,003,200 33.85%
3、Total shares 685,464,000 100% 685,464,000 100%
Cause of share change
□ available √ not available
Approval of stock change
□ available √ not available
Transfer of changed shares
□ available √ not available
The influence of stock change on the financial indicators such as basic earnings per share, diluted
earnings per share of the latest year and the latest period, net asset per share belonging to the
Company’s common stock holders, etc..
□available √not available
Other contents which the Company thinks necessarily or securities regulatory departments claim to
disclose.
□available √not available
Changes situation in the Company’s total shares, structure of shareholders, the Company’s assets
and liabilities
□available √not available
31
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
2. The number of shareholders of the Company and the shareholdings
Unit: share
Total number of
preferred
Total common shareholders at the end of report 36,425 (19,641 of Stock A and 16,784 of shareholder
0
period Stock B) recovering
voting power at the
end of report period
Shareholders holding more than 5% or become a top 10 shareholders.
Number Pledged or frozen
Changes
Shares held of Number of
Character of Percentage until the end during the
Name of Shareholders restricte unrestricted Share
shareholders (%) of the report report Amount
period d shares status
period
shares
Domestic
YANTAI CHANGYU GROUP CO.
non-state-owned 50.40% 345,473,856 0 345,473,856
LTD.
legal person
Foreign legal
GAOLING FUND,L.P. 3.11% 21,300,919 0 21,300,919
person
CHINA SECURITIES FINANCE State-owned
2.33% 15,987,255 -10,200 15,987,255
CORPORATION LIMITED legal person
BBH BOS S/A FIDELITY FD - CHINA Foreign legal
2.22% 15,241,826 -334,300 15,241,826
FOCUS FD person
Foreign legal
GOLDEN CHINA MASTER FUND 1.03% 7,089,916 -300,000 7,089,916
person
GREENWOODS CHINA ALPHA Foreign legal
0.99% 6,773,544 -1,843,927 6,773,544
MASTER FUND person
Foreign legal
NORGES BANK 0.96% 6,584,748 886,296 6,584,748
person
Domestic
Tian’an Property insurance CO.,
non-state-owned 0.86% 5,896,731 5,896,731 5,896,731
LTD—Baoying No. 1
legal person
GUOTAI JUNAN SECURITIES Foreign legal
0.81% 5,522,276 852,704 5,522,276
(HONGKONG LIMITED) person
CENTRAL HUIJIN INVESTMENT State-owned
0.69% 4,761,200 0 4,761,200
LIMITED legal person
Strategic investors or legal result of the placement of new
No
shares to become a top 10 shareholders
32
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
Among the top 10 shareholders, Yantai Changyu Group Company Limited has no
The explanation for the associated relationship and
associated relationship or accordant action relationship with the other 9 listed
accordant action of the top 10 shareholders
shareholders, and the relationship among the other shareholders is unknown.
The top 10 shareholders with unrestricted shares
Number of Type of share
unrestricted
Name of Shareholders shares held until
Type of share Amount
the end of the
report period
YANTAI CHANGYU GROUP CO., LTD. 345,473,856 A share 345,473,856
GAOLING FUND,L.P. 21,300,919 B share 21,300,919
CHINA SECURITIES FINANCE CORPORATION LIMITED 15,987,255 A share 15,987,255
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 15,241,826 B share 15,241,826
GOLDEN CHINA MASTER FUND 7,089,916 B share 7,089,916
GREENWOODS CHINA ALPHA MASTER FUND 6,773,544 B share 6,773,544
NORGES BANK 6,584,748 B share 6,584,748
Tian’an Property insurance CO., LTD—Baoying No. 1 5,896,731 A share 5,896,731
GUOTAI JUNAN SECURITIES (HONGKONG LIMITED) 5,522,276 B share 5,522,276
CENTRAL HUIJIN INVESTMENT LIMITED 4,761,200 A share 4,761,200
Among the top 10 shareholders, Yantai Changyu
The explanation for the associated relationship and accordant action of the top 10
Group Company Limited has no associated
shareholders with unrestricted shares, the the associated relationship and accordant
relationship or accordant action relationship with
action between the top 10 shareholders with unrestricted shares and the top 10
the other 9 listed shareholders, and the relationship
shareholders
among the other shareholders is unknown.
Explanation for the Top 10 shareholders who involved in financing activities and stock The top 10 Shareholders is not involved in financing
trading business activities and stock trading business.
Whether or not to be agreed to buy back trading by Company shareholders during the report period
□ Yes √ No
There is no agreed to buy back trading by Company shareholders during the report period.
3. Controlling shareholder or changes of the actual controllers situation
Changes of the controlling shareholder during the report period
□ available √ not available
There is no any change of the controlling shareholder during the report period.
Changes of the actual controllers during the report period
□ available √ not available
There is no any Change of the actual controllers during the report period
33
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
4. Company’s shareholders and Consistent behavior person offer or carry out the plan of
increasing rights issue during the period.
□ available √ not available
In the context of Company known, Company’s shareholders and Consistent behavior person did not
offer or carry out the plan of increasing rights issue during the period.
34
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
VII、elative situation for preferred Shares
□ available √ not available
There are no preferred shares during the report period.
35
Yantai Changyu Pioneer Wine Co. Ltd. 2016 Semi-annual Report
VIII、Situation for Directors, Supervisors, Senior Management
1. Changes in shareholdings of directors, supervisors and senior management
□ available √ not available
There are no any changes in shareholdings of directors, supervisors and senior management during
the report period, details see 2015 annual report
2. Personnel changes in Company's directors, supervisors and senior management
√ available □not available
Name Positions held Type Date Reason
Sun Liqiang Chairman to the Board of Directors Elected 2016.05.26 -
Zhou Hongjiang Vice-chairman to the Board of Directors and Elected 2016.05.26 -
General manager
Leng Bin Director and Vice-general manager Elected 2016.05.26
Qu Weimin Director, Vice-general manager and Secretary Elected 2016.05.26 -
to the Board of Directors
Zhang Ming Director Elected 2016.05.26 -
Chen Jizong Director Leave after tenure 2016.05.26 -
Augusto Reina Director Elected 2016.05.26 -
Aldino Marzorati Director Elected 2016.05.26 -
Antonio Appignani Director Elected 2016.05.26 -
Dai Hui Director Elected 2016.05.26 -
Xiao Wei Independent director Leave after tenure 2016.05.26 -
Wang Zhuquan Independent director Elected 2016.05.26 -
Wang Shigang Independent director Elected 2016.05.26 -
Kong Qingkun Chairman to the Board of Supervisors Elected 2016.05.26 -
Zhang Lanlan Supervisor Elected 2016.05.26 -
Liu Zhijun Supervisor Elected 2016.05.26 -
Guo Ying Supervisor Leave after tenure 2016.05.26 -
Yang Ming Vice-general manager Appointed -
Li Jiming Chief engineer Appointed -
Jiang Hua Vice-general manager Appointed -
Sun Jian Vice-general manager Appointed -
Jiang Jianxun Finance manager Appointed -
36
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
IX、Financial Report
1. Audit report
Whether the semi-annual report has been audited
□ Yes √ No
The semi-annual report has not been audited.
2. Financial statement
The unit in the statement of the financial annotations is RMB Yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Ending balance Beginning balance
Current assets:
Monetary fund 7.1 1,834,011,453 1,285,362,414
Settlement reserves
Lending funds
Financial assets measured at the fair value and the variation of which is
recorded into the current profit and loss
Derivative financial assets
Bills receivable 7.2 216,068,017 113,988,122
Accounts receivable 7.3 190,619,346 197,795,091
Advance payment 7.4 1,882,857 3,591,098
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Interest receivable 7.5 10,597,464 8,019,338
Dividends receivable
Other receivables 7.6 52,020,362 46,146,487
Buy-in/sell-out financial assets
Inventories 7.7 1,846,973,146 2,260,852,964
Assets classified as holding and available for sale
Non-current assets due within one year
Other current assets 7.8 72,314,194 48,449,551
Total current assets 4,224,486,839 3,964,205,065
Non-current assets:
Offering loans and imprest
Available-for-sale financial assets 7.9 345,365 402,814
Held-to-maturity investments
Long-term receivables
37
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Ending balance Beginning balance
Long-term equity investments
Investment real estate
Fixed assets 7.10 3,060,879,719 3,089,245,185
Construction in progress 7.11 2,746,671,930 2,005,990,308
Construction materials
Disposal of fixed assets
Productive biological assets 7.12 213,066,292 192,198,283
Oil and gas assets
Intangible assets 7.13 457,478,541 463,899,916
Development expenditure
Goodwill 7.14 119,486,579 105,504,426
Long-term prepaid expenses 7.15 184,975,882 175,124,167
Deferred tax assets 7.16 259,796,155 302,406,656
Other non-current assets 7.17 17,137,746 45,234,641
Total non-current assets 7,059,838,209 6,380,006,396
Total assets 11,284,325,048 10,344,211,461
Current liabilities:
Short-term loans 7.18 666,553,181 665,581,921
Borrowings from the Central Bank
Customer and interbank deposits
Borrowing funds
Financial liabilities measured at the fair value and the variation of which
is recorded into the current profit and loss
Derivative financial liabilities
Bills payable 7.19 8,130,000 29,000,000
Accounts payable 7.20 371,213,214 569,278,368
Advances from customers 7.21 363,853,981 234,566,504
Financial assets sold for repurchase
Handling fees and commissions payable
Employee benefits 7.22 143,058,770 190,239,451
Taxes payable 7.23 -66,369,334 41,285,107
Interest payable 7.24 993,011 977,304
Dividends payable
Other payables 7.25 688,773,399 509,226,395
Dividend payable for reinsurance
Reserves for insurance contracts
Acting trading securities
Acting underwriting securities
Liabilities classified as holding and available for sale
Non-current liabilities due within one year 7.26 133,174,814 156,335,647
Other current liabilities 7.27 11,181,873 11,241,873
Total current liabilities 2,320,562,909 2,407,732,570
Non-current liabilities:
Long-term borrowings 7.28 96,812,039 71,686,629
Bonds payable
Including: Preferred stock
38
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Ending balance Beginning balance
Perpetual capital securities
Long-term accounts payable 305,000,000
Long-term employee remunerations payable
Special accounts payable
Estimated liabilities
Deferred income 7.29 64,372,808 69,836,411
Deferred tax liabilities 7.16 33,561,414 34,350,349
Other non-current liabilities 7.30 4,047,476 4,047,476
Total non-current liabilities 503,793,737 179,920,865
Total liabilities 2,824,356,646 2,587,653,435
Owner’s equity:
Capital stock 7.31 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual capital securities
Capital surplus 7.32 565,955,441 565,955,441
Minus: Treasury stock
Other comprehensive income 7.33 -4,192,593 -10,442,512
Special reserves
Surplus reserves 7.34 342,732,000 342,732,000
General risk preparation
Retained earnings 7.35 6,675,411,921 5,980,390,074
Total owner’s equities attributable to the parent company 8,265,370,769 7,564,099,003
Minority equity 194,597,633 192,459,023
Total owner’s equities 8,459,968,402 7,756,558,026
Total liabilities and owner’s equities 11,284,325,048 10,344,211,461
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department
Manager: Jiang Jianxun
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Ending balance Beginning balance
Current assets:
Monetary fund 651,156,049 280,818,833
Financial assets measured at the fair value and the variation of which is
recorded into the current profit and loss
Derivative financial assets
Bills receivable 83,285,165 38,429,319
Accounts receivable 15.1 643,457 2,392,870
Advance payment 692,647 445,619
Interest receivable 10,597,464 8,019,338
Dividends receivable 788,092,349
Other receivables 15.2 5,996,770,824 5,734,456,129
39
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Ending balance Beginning balance
Inventories 698,090,569 728,173,107
Assets classified as holding and available for sale
Non-current assets due within one year
Other current assets 20,226,824 22,700,317
Total current assets 7,461,462,999 7,603,527,881
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 15.3 1,423,725,152 1,423,725,152
Investment real estate
Fixed assets 358,616,108 369,506,014
Construction in progress 7,064,987 7,990,777
Construction materials
Disposal of fixed assets
Productive biological assets 123,094,017 110,961,189
Oil and gas assets
Intangible assets 73,191,949 74,381,525
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets 35,472,970 37,938,692
Other non-current assets
Total non-current assets 2,021,165,183 2,024,503,349
Total assets 9,482,628,182 9,628,031,230
Current liabilities:
Short-term loans 598,000,000 601,297,447
Financial liabilities measured at the fair value and the variation of which
is recorded into the current profit and loss
Derivative financial liabilities
Bills payable
Accounts payable 106,048,766 273,091,182
Advances from customers
Employee benefits 63,402,695 71,058,615
Taxes payable -9,021,130 19,331,311
Interest payable 993,011 977,304
Dividends payable
Other payables 376,440,988 994,821,281
Liabilities classified as holding and available for sale
Non-current liabilities due within one year 129,914,400 127,345,600
Other current liabilities 1,767,054 1,767,054
Total current liabilities 1,267,545,784 2,089,689,794
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual capital securities
40
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Ending balance Beginning balance
Long-term accounts payable
Long-term employee remuneration payable
Special accounts payable
Estimated liabilities
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 67,071,981 80,530,907
Total liabilities 1,334,617,765 2,170,220,701
Owner’s equity:
Capital stock 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual capital securities
Capital surplus 557,222,454 557,222,454
Minus: Treasury stock
Other comprehensive income
Special reserves
Surplus reserves 342,732,000 342,732,000
Retained earnings 6,562,591,963 5,872,392,075
Total owner’s equities 8,148,010,417 7,457,810,529
Total liabilities and owner’s equities 9,482,628,182 9,628,031,230
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department
Manager: Jiang Jianxun
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Total operating income 2,753,032,799 2,825,793,250
Including: Operating income 7.36 2,753,032,799 2,825,793,250
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1,840,237,208 1,842,448,784
Including: Operating costs 7.36 902,734,104 932,522,743
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of the withdrawn reserve fund for insurance
contract
Policy bonus payment
Amortized reinsurance expenditures
Taxes and surcharges 7.37 153,081,792 140,611,088
Selling expenses 7.38 650,737,234 653,425,516
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Administrative expenses 7.39 122,695,845 119,770,340
Financial expenses 7.40 10,988,233 -3,880,903
Loss for impairment of assets
Plus: Fair value charge profit (loss is listed with "-")
Investment profit (loss is listed with "-")
Including: Investment profit for joint-run business and joint
venture
Exchange income (loss is listed with "-")
3. Operating profit (loss is listed with "-") 912,795,591 983,344,466
Plus: Non-operating income 7.41 21,933,526 8,796,834
Including: Gains on disposal of non-current assets 94,567 2,985
Minus: Non-operating expenses 7.42 343,776 353,951
Including: Losses on disposal of non-current assets 110,052 1,564
4. Total profits (total loss is listed with "-") 934,385,341 991,787,349
Minus: Income taxes 7.43 238,715,481 245,727,101
5. Net profit (net loss is listed with "-") 695,669,860 746,060,248
Attributable to owner of the parent company 695,021,847 746,060,248
Minority shareholder interests 648,013
6. Net after-tax amount of other comprehensive income 7.44 6,701,754 -4,144,991
Net after-tax amount of other comprehensive income attributable to
6,249,919 -4,144,991
owner of the parent company
6.1 Other comprehensive income not to be reclassified into profit and
loss later
6.1.1 Net liabilities or net assets change after remeasuring and
resetting the benefit plans
6.1.2 Share enjoyed in other comprehensive income not to be
reclassified into profit and loss in invested unit under equity law
6.2 Other comprehensive income to be reclassified into profit and
6,249,919 -4,144,991
loss later
6.2.1 Share enjoyed in other comprehensive income to be reclassified
into profit and loss in invested unit under equity law
6.2.2 Profit and loss from changes in fair value of financial assets for
sale
6.2.3 Profit and loss from reclassification of held-to-maturity
investment into fair value of financial assets for sale
6.2.4 Effective part of profit and loss of cash-flow hedge
6.2.5 Difference in translation of Foreign Currency Financial
6,249,919 -4,144,991
Statement
6.2.6 Other
Net after-tax amount of other comprehensive income attributable to
451,835
minority shareholders
7. Total comprehensive income 702,371,614 741,915,257
(1) Attributable to owner of the parent company 701,271,766 741,915,257
(2) Attributable to minority shareholders 1,099,848
8. Earnings per share
(1) Basic earnings per share 1.01 1.09
(2) Diluted earnings per share 1.01 1.09
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department
Manager: Jiang Jianxun
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Operating income 15.4 655,299,000 689,053,229
Minus: Operating costs 15.4 501,312,599 548,385,836
Taxes and surcharges 73,401,856 75,959,486
Selling expenses
Administrative expenses 55,027,172 57,715,566
Financial expenses 18,250,416 -7,041,547
Loss for impairment of assets
Plus: Fair value charge profit (loss is listed with "-")
Investment profit (loss is listed with "-") 15.5 683,891,453 46,770,286
Including: Investment profit for joint-run business and joint venture
2. Operating profit (loss is listed with "-") 691,198,410 60,804,174
Plus: Non-operating income 1,141,128 3,158,421
Including: Gains on disposal of non-current assets 94,567
Minus: Non-operating expenses 36,839 301,089
Including: losses on disposal of non-current assets 21,839
3. Total profits (total loss is listed with "-") 692,302,699 63,661,506
Minus: Income tax 2,102,811 4,222,805
4. Net profit (net loss is listed with "-") 690,199,888 59,438,701
5. Net after-tax amount of other comprehensive income
5.1 Other comprehensive income not to be reclassified into profit and
loss later
5.1.1 Net liabilities or net assets change after remeasuring and
resetting the benefit plans
5.1.2 Share enjoyed in other comprehensive income not to be
reclassified into profit and loss in invested unit under equity law
5.2 Other comprehensive income to be reclassified into profit and
loss later
5.2.1 Share enjoyed in other comprehensive income to be reclassified
into profit and loss in invested unit under equity law
5.2.2 Profit and loss from changes in fair value of financial assets for
sale
5.2.3 Profit and loss from reclassification of held-to-maturity
investment into fair value of financial assets for sale
5.2.4 Effective part of profit and loss of cash-flow hedge
5.2.5 Difference in translation of Foreign Currency Financial
Statement
5.2.6 Other
6. Total comprehensive income 690,199,888 59,438,701
7. Earnings per share
(1) Basic earnings per share 1.01 0.09
(2) Diluted earnings per share 1.01 0.09
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Manager: Jiang Jianxun
2.5 Consolidated statement of cash flow
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 2,706,821,883 2,745,943,886
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Cash received from receiving insurance premium of original
insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment funds
Net increase after disposal of financial assets measured at the fair
value and the variation of which is recorded into the current profit
and loss
Cash received from collecting interest, handling fees and commission
Net increase in borrowings
Net increase in repurchasement business funds
Tax refund received 13,866,472
Other cash received related to operating activities 27,834,008 8,212,963
Subtotal of cash flows of operating activities 2,748,522,363 2,754,156,849
Cash paid for goods and services 635,982,569 377,725,712
Net increase in customer loans and advances
Net increase in deposits in central bank and interbank deposits
Cash paid to original insurance contract payments
Cash paid to interest, handling fees and commission
Cash paid to policy bonus
Cash paid to and on behalf of employees 230,296,149 205,574,897
Cash paid for taxes and expenses 756,992,525 853,362,703
Other cash paid related to operating activities 442,502,751 390,330,477
Sub-total of cash outflows of operating activities 2,065,773,994 1,826,993,789
Net cash flow from operating activities 682,748,369 927,163,060
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term of over 3 months 8,000,000 26,245,259
Cash received from obtaining investment profit 28,483 859,212
Cash received from disposal of fixed assets, intangible assets and
233,355 100
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 8,261,838 27,104,571
Cash paid to acquire fixed assets, intangible assets and other
398,151,685 452,285,573
long-term assets
Cash for investment
Cash paid to buy fixed deposit with the term of over 3 months 7,007,000 7,000,000
Net increase in hypothecated loan
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Sum of current period Sum of prior period
Net cash paid to acquire branch and other business unit 762,436
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 405,921,121 459,285,573
Net cash flow from investing activities -397,659,283 -432,181,002
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 809,175,350
Cash received from issuing bonds
Other cash received related to financing activities
Subtotal cash flows of financing activities 809,175,350
Cash paid to pay debts 512,516,014 15,562,400
Cash paid to distribute dividend, profit or pay interest 16,940,912 8,357,292
Including: dividend and profit paid to minority shareholders by
branch
Other cash paid related to financing activities 20,000,000
Subtotal of cash outflows of financing activities 549,456,926 23,919,692
Net cash flow from financing activities 259,718,424 -23,919,692
4. Influences of exchange rate fluctuation on cash and cash
6,885,883 -508,117
equivalents
5. Net Increase in cash and cash equivalents 551,693,393 470,554,249
Plus: balance at the beginning of the period of cash and cash
1,092,241,661 960,472,274
equivalents
6. Balance at the end of the period of cash and cash equivalents 1,643,935,054 1,431,026,523
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department
Manager: Jiang Jianxun
2.6 Statement of cash flow of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 595,186,103 373,810,768
Tax refund received
Other cash received related to operating activities 239,938 22,816,369
Subtotal of cash flows of operating activities 595,426,041 396,627,137
Cash paid for goods and services 324,226,720 197,172,825
Cash paid to and on behalf of employees 79,790,054 80,634,457
Cash paid for taxes and expenses 88,941,454 122,745,455
Other cash paid related to operating activities 846,691,535 22,075,594
Sub-total of cash outflows of operating activities 1,339,649,763 422,628,331
Net cash flow from operating activities -744,223,722 -26,001,194
2. Cash flow from investing activities:
Cash received from return of investment 350,000
Fixed deposit with the term of over 3 months 8,000,000 26,245,259
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Sum of current period Sum of prior period
Cash received from obtaining investment profit 1,164,454,077 47,629,498
Net cash received from disposal of fixed assets, intangible assets and
231,240
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 1,172,685,317 74,224,757
Cash paid to acquire fixed assets, intangible assets and other
15,892,483 20,197,080
long-term assets
Cash for investment
Cash paid to buy fixed deposit with the term of over 3 months 7,007,000 7,000,000
Net cash paid to acquire branch and other business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 22,899,483 27,197,080
Net cash flow from investing activities 1,149,785,834 47,027,677
3. Cash flow from financing activities
Cash received from acquiring investment
Cash received from acquiring loans 400,000,000
Cash received from issuing bonds
Other cash received related to financing activities
Subtotal cash flows of financing activities 400,000,000
Cash paid to pay debts 420,114,492 15,562,400
Cash paid to distribute dividend, profit or pay interest 13,936,049 8,357,292
Other cash paid related to financing activities
Subtotal of cash outflows of financing activities 434,050,541 23,919,692
Net cash flow from financing activities -34,050,541 -23,919,692
4. Influences of exchange rate fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash equivalents 371,511,571 -2,893,209
Plus: balance at the beginning of the period of cash and cash
143,798,080 333,245,466
equivalents
6. Balance at the end of the period of cash and cash equivalents 515,309,651 330,352,257
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department
Manager: Jiang Jianxun
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
2.7 Consolidated owner’s equity changing list
Unit: Yuan
This period
Owners’ equity of the parent company
Item Other equity instruments Minority
Minus: Other Total owners’
Capital Capital Special Surplus General risk Undistributed shareholders’
Perpetual Treasury comprehensive equity
stock Preferred
capital reserves reserves reserves preparation profits equity
stock Other stock income
securities
1. Balance at the end of last
685,464,000 565,955,441 -10,442,512 342,732,000 5,980,390,074 192,459,023 7,756,558,026
year
Plus: Accounting policies
changing
Previous error correction
Business combination under
common control
Other
2. Balance at the beginning of
685,464,000 565,955,441 -10,442,512 342,732,000 5,980,390,074 192,459,023 7,756,558,026
this year
3. Increased or decreased
amount in this period (reducing 6,249,919 695,021,847 2,138,610 703,410,376
amount is listed with "-")
3.1 Total comprehensive
6,249,919 695,021,847 1,099,848 702,371,614
income
3.2 Owners' invested and
1,038,762 1,038,762
reduced capital
3.2.1 Shareholders’ invested
common stock
3.2.2 Other equity instrument
holders’ invested capital
3.2.3 Amount of shares paid
and reckoned in owners' equity
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
3.2.4 Other 1,038,762 1,038,762
3.3 Profit distribution
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk
preparation
3.3.3 Distribution to owners (or
shareholders)
3.3.4 Other
3.4 Internal transfer of owners'
equity
3.4.1 Capital reserves
transferred and increased
capital (or capital stock)
3.4.2 Surplus reserves
transferred and increased
capital (or capital stock)
3.4.3 Surplus reserves covering
deficit
3.4.4 Other
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this
685,464,000 565,955,441 -4,192,593 342,732,000 6,675,411,921 194,597,633 8,459,968,402
period
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
Prior period
Owners’ equity of the parent company
Item Other equity instruments Minority
Minus: Other Total owners’
Capital Capital Special Surplus General risk Undistributed shareholders’
Perpetual Treasury comprehensive equity
stock Preferred reserves reserves reserves preparation profits equity
capital stock income
stock Other
securities
1. Balance at the end of last year 685,464,000 563,139,042 -2,803,271 342,732,000 5,251,920,374 162,740,779 7,003,192,924
Plus: Accounting policies
changing
Previous error correction
Business combination under
common control
Other
2. Balance at the beginning of
685,464,000 563,139,042 -2,803,271 342,732,000 5,251,920,374 162,740,779 7,003,192,924
this year
3. Increased or decreased
amount in this period (reducing 2,816,399 -7,639,241 728,469,700 29,718,244 753,365,102
amount is listed with "-")
3.1 Total comprehensive income -7,639,241 1,030,073,860 99,235 1,022,533,854
3.2 Owners' invested and
2,816,399 29,619,009 32,435,408
reduced capital
3.2.1 Shareholders’ invested
32,585,408 32,585,408
common stock
3.2.2 Other equity instrument
holders’ invested capital
3.2.3 Amount of shares paid and
reckoned in owners' equity
3.2.4 Other 2,816,399 -2,966,399 -150,000
3.3 Profit distribution -301,604,160 -301,604,160
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
3.3.1 Drew surplus reserves
3.3.2 Drew general risk
preparation
3.3.3 Distribution to owners (or
-301,604,160 -301,604,160
shareholders)
3.3.4 Other
3.4 Internal transfer of owners'
equity
3.4.1 Capital reserves
transferred and increased capital
(or capital stock)
3.4.2 Surplus reserves
transferred and increased capital
(or capital stock)
3.4.3 Surplus reserves covering
deficit
3.4.4 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this
685,464,000 565,955,441 -10,442,512 342,732,000 5,980,390,074 192,459,023 7,756,558,026
period
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
This period
Other equity instruments Minus: Other
Item Capital Capital Special Surplus Undistributed Total owners’
Preferred Perpetual capital Treasury comprehensive
stock reserves reserves reserves profits equity
stock securities Other stock income
1. Balance at the end of last year 685,464,000 557,222,454 342,732,000 5,872,392,075 7,457,810,529
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685,464,000 557,222,454 342,732,000 5,872,392,075 7,457,810,529
3. Increased or decreased amount in this
690,199,888 690,199,888
period (reducing amount is listed with "-")
3.1 Total comprehensive income 690,199,888 690,199,888
3.2 Owners' invested and reduced capital
3.2.1 Shareholders’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and reckoned in
owners' equity
3.2.4 Other
3.3 Profit distribution
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
shareholders)
3.3.3 Other
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 557,222,454 342,732,000 6,562,591,963 8,148,010,417
Unit: Yuan
Prior period
Other equity instruments Minus:
Item Capital Capital Other comprehensive Special Surplus Undistributed Total owners’
Preferred Perpetual capital Treasury
stock reserves income reserves reserves profits equity
stock securities Other stock
1. Balance at the end of last year 685,464,000 557,222,454 342,732,000 4,620,476,137 6,205,894,591
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685,464,000 557,222,454 342,732,000 4,620,476,137 6,205,894,591
3. Increased or decreased amount in this
1,251,915,938 1,251,915,938
period (reducing amount is listed with "-")
3.1 Total comprehensive income 1,553,520,098 1,553,520,098
3.2 Owners' invested and reduced capital
3.2.1 Shareholders’ invested common stock
3.2.2 Other equity instrument holder’ invested
capital
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
3.2.3 Amount of shares paid and reckoned in
owners' equity
3.2.4 Other
3.3 Profit distribution -301,604,160 -301,604,160
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or shareholders) -301,604,160 -301,604,160
3.3.3 Other
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 557,222,454 342,732,000 5,872,392,075 7,457,810,529
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
3. Basic information of this company
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company”, the “Joint-stock Company” or “the
Group”) was incorporated as a joint stock limited company in accordance with the Company Law of
the People’s Republic of China (the “PRC”) in the merger and reorganization carried out by Yantai
Changyu Group Co., Ltd. (“Changyu Group Company”) with its assets and liabilities in relation to
wine business. The Company and its subsidiary companies (hereinafter uniformly referred to as the
“Group”) are principally engaged in the production and sales of wine, brandy and champagne. The
registered address of the Company is Yantai City, Shandong Province, and the office address of the
headquarters is 56 Dama Road, Zhifu District, Yantai City, Shandong Province.
As at June 30, 2016, the Company issued 685,464,000 shares accumulatively. Refer to Note 7.31
for the details.
The parent company of the Group is Changyu Group Company incorporated in China, which was
ultimately actually controlled by Yantai Guofeng Investment Holding Co., Ltd., ILLVA Saronno
Holding SpA, International Finance Corporation and Yantai Yuhua Investment & Development Co.,
Ltd.
The subsidiaries and the consolidated financial statement of the Company were approved by the
Board of Directors on August 25, 2016.
The scope of the consolidated financial statement in this year can be seen in Note 9 “Equity in other
entities”. The scope changes of the consolidated financial statement in this year can be seen in Note
8 “Changes of the consolidated scope”.
4. Basis of preparation of financial statement
4.1 Basis of preparation
The Group implements the Accounting Standards for Business Enterprises (including the new and
revised editions published in 2014) (“ASBE”) published by the Ministry of Finance and relevant
regulations thereof. In addition, the Group also discloses relevant financial information in
accordance with Information Disclosure and Preparation Rules for Enterprises Publically Issuing
Securities No.15 ---- General Rules for Financial Statement (Revised in 2014).
Note-accounting basis and pricing principle
The note-accounting basis of financial accounting adopted by the Group is accrual system and the
measurement basis adopted by the Group in preparing its financial statement is historical cost.
Subsequently, if the assets are impaired, impairment provisions are made in accordance with
relevant accounting standards.
When the historical cost measurement is used, the assets are measured by the amount of cash or
cash equivalent when the assets are purchased or the fair value of the consideration. The liabilities
are measured by the actually received funds or assets for performing the current obligations, or the
contract amount for performing the current obligations, or the amount of cash or cash equivalent
paid for anticipated liabilities in the daily activities.
Fair value refers to a price received for selling an asset or paid for transferring a liability by the
market participant in orderly transactions on the measurement date. No matter the fair value is
observable or estimated by the valuation technique, the fair value measured and disclosed in this
financial statement is recognized on this basis.
The fair value measurement is divided into three levels based on the observable degree of the input
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
fair value and the importance of this input value on the whole fair value measurement:
*The input value of the first level is the unadjusted price of the same assets or liabilities which can
be acquired in an active market on the measurement date.
*The input value of the second level is the directly or indirectly observable input value of relevant
assets or liabilities except that of the first level.
*The input value of the third level is the unobservable input value of relevant assets or liabilities.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30, 2016, and
no issues and situations causing major doubts to this ability are found. Therefore, this financial
statement is prepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of ASBE and gives a true and integrated view of
the financial status and the consolidated financial status as at June 30, 2016, and the operating result,
the consolidated operating result, the cash flow and the consolidated cash flow of the Company
from January to June 2016.
5.2 Accounting period
The accounting period of the Group is from January 1 to December 31.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for processing
to the cash or cash equivalent is realized. The operating cycle of the Company is 12 months.
5.4 Reporting currency
Since Renminbi (RMB) is the currency of the main economic environment in which the Company
and the domestic subsidiary companies thereof are situated, the Company and the subsidiary
companies thereof adopt RMB as the reporting currency. The overseas subsidiary companies
thereof determine Euro as the reporting currency according to the main economic environment in
which they are situated. The currency in this financial statement prepared by the Group is RMB.
5.5 Accounting treatment method for business combination under common control and
non-common control
5.5.1 Business combination and goodwill under non-common control
A business combination under non-common control is a business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties before and after the
combination.
The combination cost shall be the fair value of the assets paid, the liabilities incurred or assumed or
the equity instruments issued by the acquirer in exchange for the control over the acquiree. The
intermediary expenses such as audit, legal services and assessment consultation and other related
management expenses paid by the acquirer for business combination are included in the current
profit and loss when they occur.
The identifiable assets, liabilities and contingent liabilities which are obtained from the acquiree in
the business combination and meet the recognition conditions shall be measured on the acquisition
date according to the fair value thereof.
If the combination cost is larger than the fair value of the identifiable net assets obtained from the
acquire during the combination, the difference shall be recognized as business goodwill and
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
initially measured according to the cost thereof.
The goodwill formed due to business combination shall be separately listed in the consolidated
financial statement and measured on the basis of the cost minus the accumulative impairment
provision.
5.6 Compiling methods of consolidated financial statement
The consolidation scope of the consolidated financial statement is determined on the basis of
control. Control means that the investor holds the power in the investor, obtains variable returns by
participating in relevant activities of the invested party and has the ability to affect the amount of
the returns by using the power on the invested party. Once any change of the relevant facts and
situations results in any change of relevant elements of the above definition of Control, the Group
will carry out reappraisal.
The merger of any subsidiary company starts from the date when the Group acquires the power to
control this subsidiary company, while the termination of any subsidiary company ends in the date
when the Group losses the power to control this subsidiary company.
As for any subsidiary company disposed by the Group, the business result and the cash flow
thereof before the disposal date (date of losing control power) shall have been properly included in
the consolidated income statement and the consolidated cash flow statement.
As for any subsidiary company obtained in a business combination under non-common control, the
business result and the cash flow thereof since the acquisition date (date of obtaining control power)
shall have been properly included in the consolidated income statement and the consolidated cash
flow statement.
The principal accounting policies and accounting period adopted by the subsidiary companies shall
be determined in accordance with the accounting policies and accounting period uniformly
regulated by the Company.
The influence of the internal transaction between the Company and the subsidiary companies as
well as among subsidiary companies on the consolidated financial statement shall be neutralized at
the time of combination.
The shares in the owner's equity of the subsidiary companies, which do not belong to the parent
company, shall be recognized as the minority equity and listed under the item of “minority equity”
of the owner’s equity in the balance sheet. The shares in the current profit and loss of the subsidiary
companies, which belong to the minority equity, shall be listed under the item of “minority equity”
of the net profit in the consolidated income statement.
If the loss of the subsidiary companies borne by minority shareholders exceeds the shares of the
owner's equity entitled therein by the minority shareholders at the beginning of the period, the
difference shall be still credited against the minority equity.
5.7 Recognition standards of cash and cash equivalents
Cash comprises cash on hand and demand deposit of the Company. Cash equivalents refer to
short-term highly liquid investments which are readily convertible into known amount of cash with
an insignificant risk of changes in value.
5.8 Foreign currency transaction and foreign currency statement translation
5.8.1 Foreign currency transaction
At the time of initial recognition of a foreign currency transaction, the amount of the foreign
currency shall be translated into the amount of the reporting currency at the spot exchange rate on
the transaction date.
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The monetary items of the foreign currency transaction shall be translated into RMB at the spot
change rate on the balance sheet date. The currency translation difference generated by the
difference between the spot change rate on the balance sheet date and the spot change rate at the
initial recognition or on the previous balance sheet date shall be included in the current profit and
loss, except: ① the currency translation difference of the dedicated foreign currency loan that
meets the capitalization condition shall be included in the cost of assets as capitalization during the
capitalization period; ② the currency translation difference of the arbitrage tool to avoid foreign
exchange risk shall be treated according to the hedge accounting method; ③ the currency
translation difference of the available-for-sale monetary items generated by the book value other
than the amortized cost shall be recognized as other comprehensive income and included in other
comprehensive income.
The amount of the non-monetary items of the foreign currency transaction measured by historical
cost shall be still translated into the amount in the reporting currency at the spot exchange rate on
the transaction date. The non-monetary items of the foreign currency transaction measured by the
fair value shall be translated at the spot exchange rate on the fair value date, and the difference
between the amount in the reporting currency and the amount in original reporting currency shall
be treated as the change of the fair value (including exchange rate movement) and shall be included
in the current profit and loss or recognized as other comprehensive income.
5.8.2 Translation of foreign currency financial statement
In order to compile a consolidated financial statement, the foreign currency financial statement of
overseas business shall be translated into RMB financial statement in accordance with the
following methods: all asset and liability items in the balance sheet shall be translated at the spot
exchange rate on the balance sheet date; the shareholders' equity items, except for the ones as
"undistributed profits", shall be translated at the spot exchange rate at the time when they occur; all
items and the items reflecting the accrual profit distribution in the profit statement shall be
translated at the exchange rate similar to the spot exchange rate at the time when they occur; the
undistributed profits at the beginning of the year shall be the translated to the undistributed profits
at the end of the previous year; the undistributed profits at the end of the year shall be calculated
and listed as the translated profit distribution items; and the difference between the asset items and
the sum of the liability items and the shareholders’ equity items shall be recognized as other
comprehensive income and included in the shareholder's equity.
The foreign currency cash flows and the cash flows of the overseas subsidiary companies shall be
translated at the exchange rate similar to the spot exchange rate at the time when they occur; the
amount of the cash and cash equivalents impacted by the exchange rate movement shall be, as a
reconciling item, separately listed under “impact of exchange rate movement on cash and cash
equivalents” in the cash flow statement.
The balance at the beginning of the year and the actual amount of the previous year shall be listed
as the amount translated according to the financial statement of the previous year.
5.9 Financial instruments
When becoming a party to a contract of financial instruments, the Group shall recognize a financial
asset or financial liability. The financial assets and financial liabilities shall be measured at their
fair value at the time of initial recognition. For other categories of financial assets and financial
liabilities, relevant transaction expenses thereof shall be included in the initially recognized
amount.
5.9.1 Effective interest method
The effective interest method refers to the method by which the amortized cost and the interest
income or expenditure of different installments are calculated in light of the effective interest rates
of the financial assets or financial liabilities (including a group of financial assets or financial
liabilities). The effective interest rate refers to the interest rate adopted to cash the future cash flow
of a financial asset or financial liability within the predicted term of existence or within a shorter
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applicable term into the current book value of the financial asset or financial liability.
When the effective interest rate is calculated, the Group predicts the future cash flow (taking no
account of the future credit loss) on the basis of considering all the contractual provisions
concerning the financial assets or financial liabilities, as well as all kinds of charges, transaction
expenses, discounts, premiums, etc. which are paid, charged, and included in the effective interest
rate between the contracting parties of the financial assets or liabilities.
5.9.2 Classification, recognition and measurement of financial assets
Financial assets are classified into the following categories when they are initially recognized: the
financial assets which are measured at the fair value and the variation of which is included in the
current profit and loss, the investments which will be held to their maturity, loans, accounts
receivable and available-for-sale financial assets. The financial assets purchased and sold through
common modes shall be recognized and terminated from recognition according to the accounting
on the transaction date. The financial assets held by the Group are loans, accounts receivable and
available-for-sale financial assets.
Loans and accounts receivable
Loans and accounts receivable refer to the non-derivative financial assets for which there is no
quoted price in an active market and of which the repo amount is fixed or determinable. The
financial assets classified by the Group into loans and accounts receivable include monetary capital,
bills receivable, accounts receivable, interest receivable, dividends receivable and other
receivables.
The loans and accounts receivable shall be subsequently measured at amortized cost by adopting
the effective interest rate method. The profits or losses that occur when such loans and accounts
receivable are terminated from recognition, impaired or amortized shall be included in the current
profit and loss.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as
available for sale at the time of initial recognition and the financial assets other than those
measured at their fair value and the variation of which is included in the current profit and loss,
loans, accounts receivable and the investments which will be held to their maturity.
The equity instrument investment without quoted market price in an active market whose fair value
cannot be reliably measured shall be measured by cost.
5.9.3 Impairment of financial assets
On each balance sheet date, the Group checks the book value of the financial assets. If there is any
objective evidence indicating that a financial asset is impaired, the impairment provision is accrued.
Objective evidence indicating the impairment of financial assets refers to those occurring after the
initial recognition, have effect on the estimated future cash flow of the financial assets, and can be
measured reliably.
The objective evidence indicating the impairment of the financial assets includes the following
observable matters:
1 A serious financial difficulty occurs to the issuer or the debtor;
2 The debtor breaches any of the contractual stipulations, such as, failure to pay or delay of
the payment of interest or principal;
3 The Group makes any concession due to economic, legal factors or other factors to the
debtor which is in financial difficulties;
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4 The debtor will probably become bankrupt or carry out other financial reorganizations;
5 The financial assets can no longer continue to be traded in an active market due to serious
financial difficulties of the issuer;
6 It is impossible to identify whether the cash flow of a certain asset within a certain group
of financial assets has decreased or not. But after making an overall appraisal according to
the public data available, it is found that the estimated future cash flow of the said group of
financial assets has indeed decreased since it was initially recognized and such decrease
can be measured, including:
* The payment ability of the debtor of the said group of financial assets worsens gradually;
* The country or economic region where the debtor is situated has the conditions that may
cause the financial assets to be unpaid.
7 A serious unfavourable change occurs to the operating technology, market, economic
environment, legal environment of the issuer of the equity instruments that causes the
investor of the equity instruments can’t recover the investment costs;
8 The fair value of the equity instrument investment has serious or permanent decline; and
9 Other objective evidence showing the depreciation of the financial assets.
* Impairment of financial assets measured by amortized cost
Where a financial asset measured at amortized cost is impaired, the book value of the said financial
asset shall be written down to the current value of the predicted future cash flow determined
according to the capitalization of original effective exchange rate (excluding the loss of future
credits not yet occurred), and the amount as written down shall be recognized as loss of the
impairment of the asset and shall be included into the current profit and loss. If there is any
objective evidence proving that the value of the said financial asset has been restored, and it is
objectively related to the events that occur after such loss is recognized, the impairment losses
originally recognized shall be reversed. However, the reversed book value shall not be any more
than the amortized costs of the said financial asset on the day of reverse under the assumption that
no provision is made for the impairment.
An impairment test shall be made by the Group independently on the individually significant
financial assets; with regard to not individually significant financial assets, an independent
impairment test may be carried out, or they may be included in a combination of financial assets
with similar credit risk characteristics so as to carry out an impairment-related test. Where, upon
independent test, the financial asset (including the individually significant financial assets and not
individually significant financial assets) has not been impaired, it shall be included in a
combination of financial assets with similar credit risk characteristics so as to conduct another
impairment test. Assets that are individually assessed for impairment and for which an impairment
loss is or continues to be recognized shall not be included in the combination of the financial assets
with similar credit risk characteristics for impairment test.
* Impairment of available-for-sale financial assets measured by cost
When the equity instrument investment without quoted market price in an active market and the
fair value of which cannot be reliably measured is impaired, the book value is decreased to the
current value confirmed by the discounted future cash flow according to the current market return
of the similar financial assets. The decreased amount is recognized as impairment loss and included
in the current profit and loss. The impairment loss of this kind of financial assets can’t be
transferred back upon confirmation.
5.9.4 Transfer of financial assets
Where a financial asset satisfies any of the following conditions, it shall be terminated from
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recognition: (1) where the contractual rights for collecting the cash flow of the said financial asset
are terminated; (2) where the said financial asset has been transferred and all the risks and rewards
of the financial asset have been substantially transferred to the receiver; (3) where the financial
asset has been transferred, although the Group does not transfer or retain almost all the risks and
rewards of the financial asset, the Group still waives the control over the financial asset.
Where the overall transfer of the financial asset satisfies the derecognition conditions, the
difference between the book value of the transferred financial asset as well as the consideration
received due to such transfer and the summation of the cumulative amount of the fair value of the
asset that is originally included in other comprehensive income shall be included in the current
profit and loss.
5.9.5 Classification, recognition and measurement of financial liabilities
The Group classifies the financial instruments or the components as financial liabilities or equity
instruments at the time of initial recognition according to the contract terms of the issued financial
instruments and the reflected economic essence rather than only the legal form, considering the
definition of financial liabilities and equity instruments.
The financial liabilities are classified as the financial liabilities and other financial liabilities
measured by fair value and the variation of which is included in the current profit and loss at the
time of initial recognition. The financial liabilities of the Group are other financial liabilities,
including short-term loans, notes payable, accounts payable, interest payable, other payables and
long-term loans.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost by adopting effective
interest rate method, wherein the profits or losses that arise when such financial liabilities are
terminated from recognition or amortized shall be included in the current profit and loss.
5.9.6 Terminated recognition of financial liabilities
When the prevailing obligations of a financial liability are relieved in all or in part, the recognition
of the financial liability shall be terminated in all or in part. Where the Group (debtor) enters into
an agreement with a creditor so as to substitute the existing financial liability by way of any new
financial liability, and if the contractual stipulations regarding the new financial liability is
substantially different from that regarding the existing financial liability, the recognition of the
existing financial liability shall be terminated, and at the same time the new financial liability shall
be recognized.
Where the recognition of a financial liability is totally or partially terminated, the difference
between the book value of the part which has been terminated from recognition and the
consideration which has been paid (including the non-cash assets it has transferred out and the new
financial liabilities it has assumed) shall be included into the current profit and loss.
5.9.7 Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities
and this right can be implemented at present, and when the Group plans to use net settlement or
liquidate the financial assets and pay off the financial liabilities, the amount after the financial
assets offset the financial liabilities is listed in the balance sheet. Besides, the financial assets and
the financial liabilities are respectively listed in the balance sheet without offset.
5.9.8 Equity instruments
The equity instruments mean the contracts by which to hold the residual equity in the assets of the
Group after deducting all the liabilities. The issuing (including refinancing), counter purchase, sale
or cancellation of the equity instruments by the Group shall be handled as changes of the equity.
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The Group doesn’t recognize any change to the fair value of the equity instruments. The transaction
expenses related to the equity transaction shall be deducted from the equity.
The distribution related to the equity instrument holder by the Group shall be considered as profit
distribution, and the issued share dividends don’t affect the total amount of the shareholders’
equity.
5.10 Accounts receivable
5.10.1 Bad account provision of individually significant accounts receivable
The accounts receivable with the amount above RMB
Judgment reference or amount standard for individually
3,000,000 Yuan shall be recognized by the Group as the
significant accounts
individually significant accounts receivable.
An impairment test shall be made independently by the
Group on the individually significant financial assets.
Where, upon independent test, the financial asset has not
been impaired, it shall be included in a combination of
financial assets with similar risk characteristics so as to
Accruing method for individually significant accounts accrued for
conduct another impairment test. The accounts receivable
bad account provision individually
that are independently assessed for impairment and for
which an impairment loss is or continues to be recognized
shall not be included in the combination of accounts
receivable with similar credit risk characteristics for
impairment test.
5.10.2 Individually insignificant accounts receivable accrued for bad account provision
individually
If there is objective evidence that the Group can’t call back the accounts
Reasons for accruing for bad account
according to original articles, the individually insignificant accounts receivable
provision individually
can be accrued for bad account provision individually.
The impairment losses are recognized according to the difference between the
Methods for accruing bad account
present value of future cash flow and the book value, and impairment provision
provision
is accrued.
5.11 Inventories
5.11.1 Classification of inventories
Inventories of the Group comprise raw materials, goods in process and commodity stocks. The
inventories are initially measured by cost. The inventory cost consists of purchase cost, processing
cost and other expenditures to make inventories reach the current site and state.
5.11.2 Pricing methods for sending out inventories
Weighted average method is used to determine the actual cost for sending out inventories when
sending them out.
The agricultural products after the harvest are handled in accordance with the ASBE 1- Inventories.
5.11.3 Recognition reference of the net realizable value of inventories
Inventories are stated at the lower of cost and net realizable value on the balance sheet date. If the
net realizable value is lower than the cost of inventories, the provision for the loss on decline in
value of inventories are made. The net realizable value refers to the amount: the estimated sale
price of inventories deducting the estimated cost to happen till completion, the estimated selling
expense and relevant taxes, in daily activities. Based on the acquired concrete evidence, the
purpose for holding inventories and the impact of matters after balance sheet date shall be also
considered during recognition of the net realizable value of inventories.
The inventories are accrued inventory depreciation provision according to the difference of single
inventory item and its net realizable value.
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After accruing inventory depreciation provision, if the previous influence factors writing down
inventories value disappear resulting in the net realizable value of the inventories being higher than
their book value, it shall be reversed from the originally accrued inventory depreciation provision
amount and the reversed amount shall be included in the current profit and loss.
5.11.4 Inventory system for the inventories
Inventory system: Perpetual inventory system
5.11.5 Amortization method of low-priced and easily-worn articles and packages
Amortization method of packages and low-priced and easily-worn articles: One-off amortization
method
5.12 Long-term equity investments
5.12.1 Judgment standard of control, common control and significant impact
Control means that the investor holds the power in the investor, obtains variable returns by
participating in relevant activities of the invested party and has the ability to affect the amount of
the returns by using the power on the invested party. Common control means a joint control over a
certain arrangement according to relevant agreements and relevant activities of this arrangement
must be decided upon unanimous consent of the participants sharing the control power. Significant
impact refers to the right to participate in decision-making of the investor’s financial and operating
policies but not controlling or commonly controlling the formulation of these policies with other
parties. When determining whether to control or exert significant influence on the invested unit, the
potential voting power factors such as the current convertible company bonds and the current
executable equity warrants held by the investor and other parties in the invested unit have been
considered.
5.12.2 Recognition of initial investment cost
For long-term equity investments acquired from business combination under non-common control,
the combination cost is regarded as the initial investment cost of the long-term equity investments
on the acquisition date.
The intermediary expenses such as audit, legal services and assessment consultation and other
related management expenses paid by the acquirer for business combination are included in the
current profit and loss when they occur..
For long-term equity investments other than those formed by business combination, initial
measurement shall be carried out according to the cost.
5.12.3 Subsequent measurement and recognition of loss and profit
Long-term equity investments by cost method
Long-term equity investments in the subsidiary companies are measured on cost method basis in
the corporate financial statement. Subsidiary companies refer to the invested entities by which the
Group has control.
When cost method is adopted, the long-term equity investments are measured at the initial
investment cost. In case of additional or recovered investment, the cost of the long-term equity
investments shall be adjusted accordingly. The current investment income shall be recognized
according to the cash dividends or profits declared to issue by the invested unit.
5.12.4 Disposal of long-term equity investments
When the long-term equity investments are disposed, the difference between the book value and
the actually acquired price is included in the current profit and loss.
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5.13 Fixed assets
5.13.1 Recognition conditions
Fixed assets refer to the tangible assets held for producing goods, rendering services, leasing or
operation management, with service life exceeding one accounting year. Fixed assets can only be
confirmed that the economic benefits related to the fixed assets are likely to flow into the Group,
and the cost of the fixed assets can be measured reliably. Initial measurement for fixed assets shall
be carried out according to the cost. For the subsequent expenses related to the fixed asset, if the
economic benefits related to the fixed asset are likely to flow into the Group and the cost thereby
can be reliably measured, the subsequent expenses are included in fixed asset cost and the book
value of the substituted part shall be terminated. Other subsequent expenses shall be included in the
current profit and loss.
5.13.2 Depreciation methods
Depreciation is calculated by the straight-line depreciation within the service life from the month
following having been put into operation. The estimated service life, residual value and annual
depreciation rate are as follows:
Classification Depreciation method Depreciation life Residual value rate Annual depreciation rate
Straight-line
Houses and buildings 20-40 years 0-5% 2.4%-5.0%
depreciation
Straight-line
5-20 years 0-5% 4.8%-20.0%
Machinery equipment depreciation
Straight-line
4-12 years 0-5% 7.9%-25.0%
Transportation tools depreciation
The estimated residual value refers to the amount that the Group obtains from disposal of the assets
at present after deducting the predicted disposition expenses at an estimated state on the assumption
that the predicted service life of the fixed assets has expired.
5.13.3 Other
When the fixed assets are under disposal state or cannot generate any economic benefits through
use or disposal as expected, the fixed assets shall be derecognized. The selling, transfer, scrapping
or damage disposal income shall be included in the current profit and loss after deducting the book
value and relevant taxes.
The Group reviews the service life, expected net residual value, and the depreciation method of the
fixed assets at least at the end of each year, and in case of any change, the change will be disposed
as accounting estimate change.
5.14 Construction in progress
Construction in progress is measured by actual costs, and the actual costs include all costs of the
engineering during the period of construction, capitalized borrowing costs before the engineering
reaches the planned serviceable condition and other related costs. The construction in progress is
not depreciated. The construction in progress is transferred to fixed assets after reaching the
planned serviceable condition.
5.15 Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset shall be capitalized after expenditure to acquire happens, borrowing costs happen,
acquisition, construction or production essential for making the assets ready for their intended use
or sales. Capitalization of borrowing costs shall cease when all the activities necessary to prepare
the qualifying asset for its intended use of sale are substantially complete. If the acquisition,
construction or production of a qualifying asset is abnormally interrupted, and the interruption
period exceeds three months, the capitalization of borrowing costs shall be temporarily ceased,
until the construction or production resumes. Other borrowing costs are recognized as expenses
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when occur.
5.16 Biological assets
The biological assets of the Group are productive biological assets.
Productive biological assets refer to the biological assets held for the purposes of producing
agricultural products, rendering services or leasing, etc. The productive biological assets of the
Group are vines that produce grapes. Initial measurement for the productive biological assets is
carried out according to the cost. For the occurred cost of the self-breeding productive biological
asset before achieving the intended production and operation purposes can be directly attributable
to the necessary expenses of the asset, including the borrowing cost conforming to capitalization.
The productive biological assets are not accrued depreciation until reaching the intended
production and operation purposes. After reaching the intended production and operation purposes,
the productive biological assets are accrued depreciation within the service life straight-line
depreciation. The service life, estimated net residual value rate and annual depreciation rate of
different productive biological assets are as follows:
Category of assets Service life Estimated residual value rate (%) Annual depreciation rate
Vines 20 years 5%
The service life of the productive biological assets of the Group and the estimated residual value
are confirmed by the normal service life cycle of the biological assets.
The Group reviews the service life, expected net residual value, and the depreciation method of the
productive biological assets at least at the end of each year. In case of any change, the change will
be disposed as accounting estimate change.
At the time of sale, loss, death, damage or destroy of a productive biological asset, the difference
after deducting the book value and relevant taxes from the disposal income are included in the
current profit and loss.
5.17 Intangible assets
5.17.1 Pricing method, service life and impairment test
Intangible assets include land use right and software, etc.
Initial measurement for intangible assets is carried out according to the cost. For the intangible
assets with finite lives, since they are available, the amount after the original value deducts
expected net residual value and the accrued accumulative amount of provision for impairment is
amortized evenly based on straight line method. The intangible assets with indefinite service life
are not amortized. The amortization method, service life and estimated residual value of all kinds
of intangible assets are shown as follows:
Category of assets Service life Estimated net residual value rate Annual amortization rate
Land use right 40-50 years - 2-2.5%
Software 5-10 years - 10-20%
Trademark 10 years - 10%
At the end of the period, the service life and amortization method of the intangible assets with finite
service life shall be reviewed and adjusted if necessary.
5.18 Impairment of long-term assets
On each balance sheet date, the Group and the Company check the long-term equity investments,
fixed assets, construction in progress, productive biological assets and intangible assets with finite
service life to determine whether there is a sign indicating any impairment. If there is such a sign,
the recoverable amount shall be estimated. For intangible assets with indefinite service life and
those not reaching the serviceable conditions, impairment test should be taken every year no matter
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there is a sign of depreciation or not.
The estimated recoverable amount of the asset is based on the single asset. If it is difficult to
estimate the recoverable amount of a single asset, the recoverable amount is determined based on
the asset group which the asset is in. The recoverable amount is the higher one between the net
amount after the disposition expenses are deducted from the fair value of the asset or the asset
group and the current value of the estimated future cash flow.
If the recoverable amount of the asset is lower than its book value, the impairment provision of the
asset is accrued based on the difference and included in the current profit and loss.
Impairment test is carried out for goodwill at least at the end of each year. The impairment test of
goodwill be carried out in combination with the related asset group or asset combination. That is to
say, the book value of the goodwill is amortized to the asset group or asset combination benefiting
from the synergistic effect of the business combination according to the reasonable methods from
the acquisition date. If the recoverable amount of the asset group or asset combination which
includes the amortized goodwill is lower than the book value, the corresponding impairment loss is
recognized. The amount of impairment loss shall firstly offset the book value of the goodwill
amortized to the asset group or asset combination and then offset the book value of other assets in
proportion according to the proportion in the book value of other assets in the asset group or asset
combination except for the goodwill.
After the impairment loss of assets has been recognized, it is not be reversed in the future
accounting periods.
5.19 Long-term unamortized expenses
Long-term unamortized expenses refer to prepaid expenses occurred that should be borne by
current and subsequent periods and should be amortized over more than one year. Long-term
unamortized expenses are amortized evenly over the expected beneficial periods.
Amortization period of different long-term unamortized expenses of the Group are as follows:
Amortization period
Land requisition fee 50 years
Land leasing fee 50 years
Afforestation fee 5 years
Decoration fee 3-5 years
Other 3 years
5.20 Employee remuneration
5.20.1 Accounting treatment method of short-term remuneration
During the accounting period that the employees provide services for the Group, the actual
short-term remuneration is recognized as liabilities and included in the current profit and loss or
relevant asset costs. The welfare expenses of the employees in the Group are included in the
current profit and loss or relevant asset costs when occur based on the actual amount. The
non-monetary welfare expenses of the employees are measured by the fair value.
During the accounting period that the employees provide services for the Group, the corresponding
employee remunerations and the corresponding liabilities are recognized and included in the
current profit and loss or relevant asset costs after the social insurance premiums including medical
insurance premium, industrial injury insurance premium and birth insurance premium as well as
housing provident funds are paid by the Group for the employees, and labor union dues and
employee education funds are withdrawn by the Group according to the regulated withdrawing
base and proportion.
5.20.2 Accounting treatment method of welfare after resignation
The Group makes the contribution plan for the welfare after resignation.
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During the accounting period that the employees provide services for the Group, the amount to be
deposited which is calculated in accordance with the contribution plan is recognized as liabilities
and included in the current profit and loss or relevant asset costs.
5.20.3 Accounting treatment method of welfare after dismission
If the Group provides dismission welfare to the employees, the employee remuneration liabilities
caused by the dismission welfare shall be recognized and included in the current profit and loss on
the following date which is earlier: The Group can’t unilaterally withdraw the dismission welfare
due to termination of labor relation plan or redundancy suggestion; or the Group confirms the costs
or expenses related to the reorganization involving the payment of the dismission welfare.
5.21 Revenue
5.21.1 Revenues from sale of goods
When the significant risks and rewards of ownership of goods have been transferred to the buyer,
provided that the Group maintains neither continuous management right involvement to the degree
usually associated with ownership, nor effective control over the goods sold, and cost of sales can
be measured reliably. When the relevant economic benefits are likely to flow into the enterprise
and the relevant incurred cost or cost to be incurred can be measured reliably, the realization of the
revenue from sale of goods can be recognized.
5.21.2 Rendering of services
When income amount of rendering of services can be measured reliably, the relevant economic
benefits are likely to flow into the Group, the stage of completion of the transaction can be
measured reliably, and the incurred cost or cost to be incurred in the transaction can be measured
reliably, then the income realization of rendering of services can be recognized. The Group
confirmed the income of the rendered services according to percentage-of-completion method on
the balance sheet date. The percentage-of-completion of the service transaction is determined
according to the proportion of the rendered service accounting for the total services that shall be
rendered.
If the outcome of rendering of service transaction cannot be reliably estimated, the income of the
rendered services are determined according to the render cost amount that is incurred and is
expected to be compensated, and the incurred service cost shall be the period charge. If the incurred
service cost is expected to be unable to be compensated, the income will not be determined.
5.22 Government allowances
5.22.1 Judgment standard and accounting treatment method of government allowances
related to assets
Government allowances refer to monetary or non-monetary assets received by the Group from the
government. According to the nature of the granted object clearly stipulated in relevant government
documents, government allowances include those related to assets and those related to income.
Government allowances are recognized where there is a reasonable assurance that the allowances
will be received and all attaching conditions will be complied with. Monetary allowances are
measured on the basis of the amount received or the amount receivable.
Government allowances related to assets are recognized as deferred income and are distributed
equally in the current profit and loss within the useful lives of the relevant assets.
5.22.2 Judgment standard and accounting treatment method of government allowances
related to revenues
The government allowances related to revenues to be used as compensation for future expenses or
losses are recognized as deferred income and are included in the profit and loss statement for the
period where the relevant expenses are recognized; or those to be used as compensation for
relevant expenses or losses already occurred are recorded directly in the current profit and loss.
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5.23 Deferred income tax assets/deferred income tax liabilities
The income tax expenses include the current income tax and deferred income tax.
5.23.1 Current income tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current period
and the prior periods are measured according to the predicted payable (refundable) income tax
amount as stipulated by tax law.
5.23.2 Deferred income tax assets and deferred income tax liabilities
The balance sheet liability method is used for recognizing deferred income tax assets and deferred
income tax liabilities for the difference between certain assets, book value of liability items and
their tax base, and the temporary differences arising from the book value of items (that are not
recognized as assets and liabilities but can be recognized the tax bases as stipulated by tax law) and
tax bases.
Normally all temporary differences are recognized the relevant deferred income taxes. However,
for the deductible temporary differences, the Group recognized the relevant deferred income tax
assets taking the taxable income that is likely to be obtained for deducting deductible temporary
differences as the limit. In addition, the temporary differences relevant to initial recognition of
goodwill and relevant to the initial recognition of assets or liabilities arising from transaction not of
business combination, and not influencing accounting profit and taxable income (or deductible loss)
are not recognized for the relevant deferred income tax assets or liabilities.
For the deductible losses and tax credits that can be transferred during subsequent years, the
corresponding deferred income tax assets shall be recognized by taking the future taxable income
that is likely to be used to deduct deductible losses and tax credits as the limit.
The Group recognized the deferred income tax liabilities arising from the taxable temporary
differences relevant to the subsidiary companies, except for that the Group can control the time of
the reverse of the temporary differences which are unlikely to be reversed in the foreseeable future.
For the deductible temporary differences relevant to the subsidiary companies, the Group will
recognize the deferred income tax assets only when the temporary differences are likely to be
reversed in the foreseeable future and the taxable income for deducting deductible temporary
differences is likely to be achieved in the future.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are
measured according to the applicable tax rate during the period of expecting to repossess the
relevant assets or pay off relevant liabilities as stipulated by tax law.
Except for the current income taxes and deferred income taxes (relevant to transaction and matter
that are directly included in other comprehensive income or stockholder's equity) that are included
in other comprehensive income or stockholder's equity and the deferred income taxes arising from
business combination that adjusts the book value of the goodwill, the expenses or revenues of other
current income taxes and deferred income taxes are included in the current profit and loss.
On the balance sheet date, the Group shall review the book value of deferred income tax assets and
shall write down the book value of deferred income tax assets if sufficient taxable income is
unlikely to be obtained in the future to deduct the benefits of deferred income tax assets. The
amount written down shall be reversed when it is likely to obtain sufficient taxable income.
5.23.3 Offset of income tax
When there is the legal right of netting or intention of netting or carrying out obtaining assets and
paying off liabilities at the same time, the current income tax asset and current income tax liability
of the Group are reported according to the net amount after offset.
When there is the legal right of netting the current income tax asset and current income tax liability
and the deferred income tax assets and deferred income tax liabilities are relevant to the income tax
collected by same tax collection and management department on the same taxpayer or different
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
taxpayers, however, the involved tax payers intend to net the current income tax assets and
liabilities or obtain assets and pay off liabilities at the same time during every period of reverse of
each significant deferred income tax assets and liabilities in the future, deferred income tax assets
and deferred income tax liabilities of the Group are reported according to the net amount after
offset.
5.24 Lease
5.24.1 Accounting treatment method of operating lease
The Group records the operating lease business as a lessee.
Rental expenses under the operating lease are credited to related costs of the assets or the current
profit and loss on the straight line basis over the lease terms. The initial direct costs are credited to
the current profit and loss. Contingent rentals are included in the current profit and loss upon actual
accrual.
5.25 Changes in main accounting policies and accounting estimates
5.25.1 Changes in main accounting policies
Nil
5.25.2 Changes in main accounting estimates
Nil
5.26 Other
Critical assumptions and uncertain factors adopted for important judgements and accounting
estimates during the application of the accounting policies
During the application of the accounting policies of this Financial Report IV, the Group needs to
judge, estimate and assume the book value of the report items that are unable to be accurately
measured due to the inherent uncertainties of business activities, in which the judgment, estimation
and assumption are made based on the previous historical experience of the management level of
the Group and considering other relevant factors. The actual results may have differences from the
estimation of the Group.
The Group regularly reviews the above-mentioned judgment, estimation and assumption based on
the continuous operation, and the change of accounting estimate only affects the current period of
change, of which the influence number will be recognized at the current period of change; in case
of influencing both current period and future period of change, the influence number will be
recognized at the current period and future period of change.
Critical assumptions and uncertain factors adopted for accounting estimates
On the balance sheet date, the main critical assumptions and uncertainties in accounting estimates
that are likely to result in significant adjustments in assets and book value of liabilities in the future
period include:
Deferred income tax assets
Within the limit of the likeliness that there is sufficient taxable income to deduct deductible losses,
the deferred income tax assets shall be recognized according to all deductible losses that have not
been utilized, which requires the management level to use a lot of judgments to estimate the
occurred time and amount of taxable income to be obtained in the future, and combine with tax
planning strategy to decide the amount of deferred income tax assets that shall be recognized.
Depreciation
The Group uses straight line method for provision for depreciation within the expected service life
after considering the residual value of the fixed assets. The Group regularly reviewed the expected
service life to decide the amount of depreciation expense that will be included in every report
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period. The expected service life is recognized by the Group according to the previous experience
on similar assets and in combination with the expected technical changes. The depreciation expense
shall be adjusted if there are significant changes in the previous estimate.
Service life of intangible assets
The expected service life of intangible assets are estimated based on actual service life of the
previous intangible assets of similar natures and functions and according to historical experience
and in consideration of the duration of the contractual rights or other legal rights applicable to the
intangible assets.
In case that the service life of the intangible assets shortens or extends, the amortization period will
be adjusted in the future period for intangible assets with finite life; for intangible assets with
indefinite life, if there is evidence showing that their service life is finite, their service life will be
estimated in the future period and they will be disposed according to the disposal principles of
intangible assets with finite life.
Impairment of long-term assets
The Group carries out impairment assessment on long-term assets to determine if the recoverable
amount of assets drops to the amount lower than their book value. If the situation shows that the
book value of the long-term assets may not be fully recovered, the relevant assets will be deemed
as having been impaired and the impairment loss shall be correspondingly recognized.
The recoverable amount is the higher in: the net amount of fair value of an asset (or asset group)
minus disposal expense, and the present value of the estimated future cash flow of the asset (or
asset group). It is difficult for the Group to accurately estimate the fair value of an asset because of
difficulty in obtaining the open market price of the asset (or asset group). It needs to make
significant judgments on the output, selling price, relevant operating cost of the asset (or asset
group) and the discount rate used for calculating present value when estimating the present value of
future cash flow. The Group will use all easily available materials in estimating the recoverable
amount, including the forecast relevant to output, selling price and relevant operating cost
according to the reasonable and supportable assumption.
Bad account provision of accounts receivable
Bad account provision of accounts receivable shall be recognized by the management level
according to the objective evidences (e.g. the possibility of bankruptcy or severe financial difficulty
of the debtor) that can affect the recovery of the accounts receivable. The management level will
reevaluate bad account provision in the end of every year.
Inventory depreciation provision accrued based on net realizable value
According to the inventory accounting policy, the Group carries out price decrease provision for
obsolete and unsalable inventories with higher cost than the net realizable value measurement
according to the lower of the cost and net realizable value. The Group will reevaluate if the
inventories are obsolete and unsalable, and if the net realizable value is lower than inventory cost in
the end of every year.
6. Taxes
6.1 Main taxes and tax rate
Taxes Tax basis Tax rate
VAT is levied by the output tax calculated by the 17% (China), 19.6%
Value added tax taxable revenue as the tax base after deduction of (France) and 21%
eligible input VAT in this period. (Spain)
Consumption tax The consumption tax is levied by the taxable revenue 10%-20% (China)
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
as the tax base.
The business tax is levied by the taxable revenue as the
Business tax 5% (China)
tax base.
Urban maintenance The urban maintenance and construction tax is levied
7% (China)
and construction tax by the actually paid turnover tax as the tax base.
25% (China), 33%
The corporate income tax is levied by the taxable
Corporate income tax (France) and 30%
income as the tax base.
(Spain)
6.2 Tax incentives
Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”), a subsidiary of the Company, whose
principal activity is grape growing, is incorporated in Yongning County, Ningxia Hui Autonomous
Region. According to Article 27 of PRC Corporate Income Tax and Article 86 of PRC Corporate
Income Tax Measures for Implementation, it enjoys an exemption of corporate income tax related to
grape growing.
Xinjiang Tianzhu Wine Co., Ltd. (“Xinjiang Tianzhu”) and Xinjiang Chateau Changyu Baron Balboa
Co., Ltd. (“Shihezi Chateau”), the subsidiaries of the Company, are enterprises engaged in the
production and sales of bulk wine incorporated in Shihezi City, Xinjiang Uygur Autonomous Region.
In accordance with relevant regulations of the Notice on Relevant Issues of Taxes Policies for Deeply
Implementing the Western Development Strategy (Cai Shui [2011] No. 58), the corporate income tax of
the encouraged enterprises established in the western regions are levied at the tax rate of 15% from
January 1, 2011 to December 31, 2020.
7. Notes to consolidated financial statement
7.1 Monetary capital
Unit: Yuan
Item Ending balance Beginning balance
Cash on hand 189,184 179,488
Bank deposit 1,654,464,797 1,103,705,354
Other monetary capitals 179,357,472 181,477,572
Total 1,834,011,453 1,285,362,414
Including: Total amount of funds
7,482,748 6,019,640
deposited abroad
As at June 30, 2016, the bank deposit with ownership restrictions of the Group was RMB 2,711,926
Yuan (December 31, 2015: RMB 2,643,181 Yuan), which was the housing fund in the Group.
As at June 30, 2016, other monetary capital of the Group included the pledge deposit of RMB
125,000,000 Yuan for loans from HSBC of HKD 152,000,000 (equivalent to RMB 129,914,400 Yuan),
fixed-term deposit of RMB 46,100,000 Yuan pledged by Yantai Changyu Wine Research,
Development & Manufacture Co., Ltd. (“R&D Company”), refundable deposits for bills payable of
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Xinjiang Changyu Wine Sales Co., Ltd. (“Xinjiang Sales”) of RMB 8,130,000 Yuan and guaranty
money for deposits in the public card of RMB 127,472 Yuan.
As at June 30, 2016, the Group had monetary capital of RMB 7,482,748 Yuan that was deposited
abroad (December 31, 2015: RMB 6,019,640 Yuan).
As at June 30, 2016The bank deposits of the Group including time deposits ranging from 3 months to
6 months amounted to RMB 8,007,000 Yuan (December 31, 2015: RMB 9,000,000 Yuan), with the
interest rates ranging from 1.40%-1.69%.
7.2 Bills receivable
7.2.1 Classification of bills receivable
Unit: Yuan
Type Ending balance Beginning balance
Bank acceptance 216,068,017 113,988,122
Trade acceptance
Total 216,068,017 113,988,122
7.2.2 Bills receivable pledged by the Company at the end of period
Nil
7.2.3 Bills receivable endorsed or discounted by the Company at the end of period but
not yet matured as of the balance sheet date
Unit: Yuan
Amount terminating recognition at the end Amount not terminating recognition
Item
of period at the end of period
Bank acceptance 331,544,213
Trade acceptance
Total 331,544,213
7.2.4 Bills receivable reclassified as accounts receivable by the Company due to the
default of drawer at the end of period
Nil
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.3 Accounts receivable
7.3.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Bad debt
Book balance Book balance Bad debt provision
Type provision
Book value Book value
Amount Proportion Amount Accrued Amount Proportion Amount Accrued
proportion proportion
Accounts
receivable of
significant
single amount
82,211,281 43.1% 82,211,281 74,538,738 37.7% 74,538,738
and single
accrued bad
debt
provision
Accounts
receivable
accrued bad
debt
provision by
credit risk
features
Accounts
receivable of
insignificant
single amount
108,408,065 56.9% 108,408,065 123,256,353 62.3% 123,256,353
and single
accrued bad
debt
provision
Total 190,619,346 100 % 190,619,346 197,795,091 100 % 197,795,091
The credit term of accounts receivable is normally one month. Major customers can be granted a credit
term up to three months. The accounts receivable are free from interest.
As at June 30, 2016, the accounts receivable with ownership restrictions was RMB 26,671,881 Yuan
(December 31, 2015: RMB 23,880,775 Yuan). Please refer to Note 7.18 for the details.
7.3.2 Bad debt provision accrued, transferred back or received in this period
The bad debt provision accrued in this period was RMB 0 Yuan; and that transferred back or
received in this period was RMB 0 Yuan.
7.3.3 Accounts receivable actually cancelled after verification in this period
Nil
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance
Relationship with the Percentage in total
Unit Amount Period
Company accounts receivable
Nonggongshang
Supermarket (Group) Co., Third party 17,337,863 Within 1 year 9.1%
Ltd.
Wal-mart (China)
Third party 13,970,035 Within 1 year 7.3%
Investment Co., Ltd.
DIA Market Third party 8,189,069 Within 1 year 4.3%
Lianhua Supermarket
Third party 7,829,852 Within 1 year 4.1%
Holdings Co., Ltd.
Suguo Supermarket Co., Ltd. Third party 7,678,879 Within 1 year 4.0%
Total -- 55,005,698 -- 28.8%
7.3.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.3.6 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Advance payment
7.4.1 Advance payment listed by age
Unit: Yuan
Ending balance Beginning sum
Age
Amount Proportion Amount Proportion
Within 1 year 1,701,337 90.4% 3,096,223 86.2%
1-2 years 130,869 7.0 % 494,875 13.8%
2-3 years 50,651 2.6%
More than 3 years
Total 1,882,857 -- 3,591,098 --
7.4.2 Advance payment collected by the prepaid parties of top 5 units ranked by the
ending balance
Percentage
Relationship with
Unit Amount Age Reason for unsettlement in the total
the Group
advance
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
payment%
Shandong Electric Power Group
Within 1 Prepaid electricity
Company Yantai Power Supply Third party 542,206 28.8%
year purchasing fund
Company
Ningxia Shuying Guangtong Industry Within 1
Third party 140,200 Failure to receive the goods 7.4%
and Trade Co., Ltd. year
Within 1
Chongqing Hoson Glass Co., Ltd. Third party 110,220 Failure to receive the goods 5.9%
year
PetroChina Co., Ltd. Ningxia Yinchuan Within 1
Third party 30,000 Failure to receive the goods 1.6%
Sales Branch year
Sinopec Sales Co., Ltd. Hebei Langfang Within 1
Third party 27,000 Failure to receive the goods 1.4%
Petroleum Branch year
Total -- 849,626 -- -- 45.1%
7.5 Interest receivable
7.5.1 Interest receivable
Unit: Yuan
Item Ending balance Beginning balance
Time deposit 10,597,464 8,019,338
Entrusted loan
Bond investment
Total 10,597,464 8,019,338
7.6 Other accounts receivable
7.6.1 Other accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type
Amount Proportion Amount Accrued Book value Amount Proportion Amount Accrued Book value
proportion proportion
Other
accounts
receivable
of
significant
single 31,800,691 53.7% 7,199,521 22.6% 24,601,170 32,390,931 60.7% 7,199,521 22.2% 25,191,410
amount and
single
accrued bad
debt
provision
Other
accounts
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
receivable
accrued bad
debt
provision
by credit
risk features
Other
accounts
receivable
of
insignificant
single 27,419,192 46.3% 27,419,192 20,955,077 39.3% 20,955,077
amount and
single
accrued bad
debt
provision
Total 59,219,883 100 % 7,199,521 12.2% 52,020,362 53,346,008 100 % 7,199,521 14 .0% 46,146,487
Other accounts receivable of significant single amount and single accrued bad debt provision
at the end of period:
Unit: Yuan
Ending balance
Other accounts
receivable (by unit) Other accounts Accrued
Bad debt provision Reason for accrual
receivable proportion
Tiantong Securities Co., This company is in bankruptcy
7,199,521 7,199,521 100%
Ltd. liquidation.
Total 7,199,521 7,199,521 -- --
7.6.2 Bad debt provision accrued, transferred back or received in this period
The bad debt provision accrued in this period was RMB 0 Yuan; and that transferred back or
received in this period was RMB 0 Yuan.
7.6.3 Other accounts receivable actually cancelled after verification in this period
Nil
7.6.4 Other accounts listed by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Deposit and guaranty money receivable 27,131,541 27,424,926
Investment receivable 7,199,521 7,199,521
Fund of disbursement receivable 7,022,385 6,679,122
Consumption tax and house duty reimbursement 1,218,388 635,482
Other 16,648,048 11,406,957
Total 59,219,883 53,346,008
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.6.5 Other accounts receivable collected by the borrowers of top 5 units ranked by the
ending balance
Unit: Yuan
Percentage in total
Ending Ending balance of
Unit Nature Age ending balance of other
balance bad debt provision
accounts receivable
YEDA Construction Enterprise
Construction
Old-age Security Pension 12,325,300 1-2 years 20.8%
guarantee
Management Office
Construction
YEDA Finance Bureau 7,275,870 1-2 years 12.3%
guarantee
Tiantong Securities Co., Ltd. Investment 7,199,521 Over 3 years 12.2% 7,199,521
YEDA Construction Industry Construction
5,000,000 Over 3 years 8.4%
Association guarantee
Foreign
Canada Oros Icewine Co., Ltd. investment 2,050,000 Within 1year 3.5%
receivable
Total -- 33,850,691 -- 57.2% 7,199,521
7.6.6 Other accounts receivable terminating recognition due to transfer of financial
assets
Nil
7.6.7 Other accounts receivable transferred and included in assets and liabilities
Nil
7.7 Inventories
7.7.1 Inventory classification
Unit: Yuan
Ending balance Beginning balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 58,624,919 58,624,919 89,256,433 89,256,433
Goods in process 1,053,697,549 1,053,697,549 1,247,023,301 1,247,023,301
Commodity stocks 752,798,168 18,147,490 734,650,678 942,720,720 18,147,490 924,573,230
Total 1,865,120,636 18,147,490 1,846,973,146 2,279,000,454 18,147,490 2,260,852,964
7.7.2 Inventory depreciation provision
Unit: Yuan
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Increase in this period Decrease in this period
Beginning
Item Transfer back or Ending balance
balance Accrual Other Other
write-off
Raw materials
Goods in process
Commodity stocks 18,147,490 18,147,490
Total 18,147,490 18,147,490
7.8 Other current assets
Unit: Yuan
Item Ending balance Beginning balance
Prepaid taxes 58,958,560 31,782,345
Advance rental payment 13,355,634 16,667,206
Total 72,314,194 48,449,551
7.9 Available-for-sale financial assets
7.9.1 Available-for-sale financial assets
Unit: Yuan
Ending balance Beginning balance
Item Book Impairment Book Book Impairment Book
balance provision value balance provision value
Available-for-sale financial
instruments:
Available-for-sale equity
10,345,365 10,000,000 345,365 10,402,814 10,000,000 402,814
instruments:
Fair value measurement
Cost measurement 10,345,365 10,000,000 345,365 10,402,814 10,000,000 402,814
Total 10,345,365 10,000,000 345,365 10,402,814 10,000,000 402,814
7.9.2 Available-for-sale financial assets by cost measurement at the end of period
Unit: Yuan
Book balance Impairment provision Cash
Shareholding
Increase Decrease Increase Decrease dividend
Invested unit ratio in the
Beginning in this in this Ending Beginning in this in this Ending in this
invested unit
period period period period period
Yantai
Dingtao
Construction
10,000,000 10,000,000 10,000,000 10,000,000 18 %
and
Development
Co., Ltd.
Less than
Other 402,814 57,449 345,365
1%
Total 10,402,814 57,449 10,345,365 10,000,000 10,000,000 --
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.9.3 Changes of impairment of available-for-sale financial assets in the report period
Unit: Yuan
Classification of available-for-sale Available-for-sale equity Available-for-sale debt
Total
financial assets instruments instruments
Accrued impairment balance at the
10,000,000 10,000,000
beginning of period
Accrued amount of this period
Including: Transferred in from other
comprehensive income
Decrease in this period
Including: Fair value recovered and
transferred back after date
Accrued impairment balance at the
10,000,000 10,000,000
end of period
7.10 Fixed assets
7.10.1 Particulars of fixed assets
Unit: Yuan
Machineries and
Item Buildings Transportation tools Total
equipment
Ⅰ Original book value:
1. Beginning balance 2,647,418,685 1,498,619,150 28,457,393 4,174,495,228
2. Increase 50,494,747 22,918,394 176,391 73,589,532
2.1 Acquisition 4,261,878 20,707,188 175,045 25,144,111
2.2 Transfer in from
26,572,431 85,937 26,658,368
construction in progress
2.3 Business merger
19,660,438 2,125,269 1,346 21,787,053
increase
2.4 Other
3. Decrease 36,640 359,337 4,092,432 4,488,409
3.1 Disposal or
36,640 359,337 4,092,432 4,488,409
retirement
3.2 Other
4. Ending balance 2,697,876,792 1,521,178,207 24,541,352 4,243,596,351
Ⅱ Accumulated depreciation
1. Beginning balance 336,439,433 725,768,456 23,042,154 1,085,250,043
2. Increase 49,218,774 51,339,001 1,101,937 101,659,712
2.1 Accrual 37,225,905 49,883,106 1,100,591 88,209,602
2.2 Business merger
11,992,869 1,455,895 1,346 13,450,110
increase
2.3 Other
3. Decrease 18,383 286,929 3,887,811 4,193,123
3.1 Disposal or
18,383 286,929 3,887,811 4,193,123
retirement
3.2 Other
4. Ending balance 385,639,824 776,820,528 20,256,280 1,182,716,632
Ⅲ Impairment provision
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Machineries and
Item Buildings Transportation tools Total
equipment
1. Beginning balance
2. Increase
2.1 Accrual
2.2 Other
3. Decrease
3.1 Disposal or
retirement
3.2 Other
4. Ending balance
Ⅳ Book value
1. Ending book value 2,312,236,968 744,357,679 4,285,072 3,060,879,719
2. Beginning book value 2,310,979,252 772,850,694 5,415,239 3,089,245,185
As at June 30, 2016, the net value of the fixed assets with ownership restrictions was RMB
28,564,102 Yuan (December 31, 2015: RMB 18,405,000 Yuan). Please refer to Note 7.28 for
the details.
7.10.2 Temporarily idle fixed assets
Nil
7.10.3 Fixed assets under finance leases
Nil
7.10.4 Fixed assets under operating lease
Nil
7.10.5 Fixed assets without property certificates
Unit: Yuan
Reason for not receiving the property
Item Book value
certificate
Workshop and Plant of Xinjiang Shihezi Chateau 257,613,251 Under transaction
European Town, Main Building and Service Building of Beijing
223,713,088 Under transaction
Chateau
Dormitory Building, Main Building and Reception Building of
151,765,586 Under transaction
Chang’an Chateau
Main Building, Labelling Workshop and Tasting Center of Ningxia
148,045,312 Under transaction
Chateau
Main Building of Yantai Changyu Tinlot Chateau 92,379,345 Under transaction
Provincial Office of Sales Company 43,164,308 Under transaction
Fermentation Workshop and Storage Workshop of Xinjiang Tianzhu 19,432,497 Under transaction
Office Building and Packaging Workshop of Icewine Chateau 9,967,911 Under transaction
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Office Building, Laboratory Building and Workshop of Fermentation
6,106,452 Under transaction
Center
Wine-making Workshop of Changyu (Jingyang) 4,534,109 Under transaction
Finished Goods Warehouse and Workshop of Kylin Packaging 2,623,545 Under transaction
7.11 Construction in progress
7.11.1 Construction in progress
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Construction Project of Research,
Development & Manufacture Center
2,368,117,940 2,368,117,940 1,799,097,086 1,799,097,086
(the present “Changyu Wine City
Complex”)
Construction Project of Xianyang
183,451,421 183,451,421 61,308,522 61,308,522
Chateau
Construction Project of Sales Company 60,811,797 60,811,797 55,645,386 55,645,386
Plant Construction Project of Huanren
32,441,417 32,441,417 29,502,825 29,502,825
Winery
Construction Project of Shihezi
39,215,755 39,215,755 28,105,618 28,105,618
Chateau
Construction Project of Ningxia
40,907,546 40,907,546 13,709,767 13,709,767
Chateau
Construction Project of Tinlot Chateau 4,930,221 4,930,221 5,000,221 5,000,221
Construction and Reconstruction
7,183,477 7,183,477 7,990,777 7,990,777
Project of Joint-stock Company
Tourism Square Reconstruction Project
4,349,945 4,349,945 3,659,245 3,659,245
of AFIP
Construction Projects of Other
5,262,411 5,262,411 1,970,861 1,970,861
Companies
Total 2,746,671,930 2,746,671,930 2,005,990,308 2,005,990,308
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.11.2 Changes of major construction in progress in this period
Unit: Yuan
Proportion of Including:
Transferred Accumulative Capitalization
Beginning Other accumulative Construction capitalization Capital
Item Budget Increase to fixed Ending balance capitalization ratio of interest in
balance decrease project input in progress amount of interest source
assets amount of interest this period
budget in this period
Construction Project of
Research, Development &
Manufacture Center (the 3,505,780,000 1,799,097,086 569,020,854 2,368,117,940 67.5% Other
present “Changyu Wine
City Complex”)
Construction Project of
620,740,000 61,308,522 143,139,645 20,996,746 183,451,421 122.6% Other
Xianyang Chateau
Construction Project of
161,350,000 55,645,386 5,166,411 60,811,797 102.3% Other
Sales Company
Plant Construction Project
31,000,000 29,502,825 2,938,592 32,441,417 104.7% Other
of Huanren Winery
Construction Project of
780,000,000 28,105,618 11,110,137 39,215,755 87.5% Other
Shihezi Chateau
Construction Project of
414,150,000 13,709,767 27,197,779 40,907,546 104.5% Other
Ningxia Chateau
Construction Project of
192,400,000 5,000,221 4,527,102 4,597,102 4,930,221 95.7% Other
Tinlot Chateau
Total 5,705,420,000 1,992,369,425 763,100,520 25,593,848 2,729,876,097 -- -- --Other
As at June 30, 2016, there was no indication for impairment in construction in process of the Group, so no provision was made.
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.12 Productive biological assets
7.12.1 Productive biological assets adopting cost measurement mode
Unit: Yuan
Item Plantation Animal Husbandry Forestry Aquaculture Total
Ⅰ Original book value
1. Beginning balance 203,567,857 203,567,857
2. Increase 26,116,499 26,116,499
2.1 Outsourcing
2.2 Self cultivation 22,052,554 22,052,554
2.3 Business merger increase 4,063,945 4,063,945
3. Decrease
3.1 Disposal
3.2 Other
4. Ending balance 229,684,356 229,684,356
Ⅱ Accumulated depreciation
1. Beginning balance 11,369,574 11,369,574
2. Increase 5,248,490 5,248,490
2.1 Accrual 3,017,544 3,017,544
2.2 Business merger increase 2,230,946 2,230,946
3. Decrease
3.1 Disposal
3.2 Other
4. Ending balance 16,618,064 16,618,064
Ⅲ Impairment provision
1. Beginning balance
2. Increase
2.1 Accrual
3. Decrease
3.1 Disposal
3.2 Other
4. Ending balance
Ⅳ Book value
1. Ending book value 213,066,292 213,066,292
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
2. Beginning book value 192,198,283 192,198,283
As at June 30, 2016, no ownership of the biological assets was restricted.
As at June 30, 2016, the productive biological assets of the Group included mature productive biological
assets of RMB 61,089,955 Yuan (December 31, 2015: RMB 59,391,773 Yuan) and immature productive
biological assets of RMB 151,976,337 Yuan (December 31, 2015: RMB 132,806,510 Yuan).
As at June 30, 2016, there was no indication that biological assets may be impaired, so no provision was
made.
7.13 Intangible assets
7.13.1 Particulars of intangible assets
Unit: Yuan
Non-patented
Item Land use right Patent right Total
technology
Ⅰ Original book value
1. Beginning balance 467,605,436 37,653,788 15,237,653 520,496,877
2. Increase in this period 194,631 155,948 173,848 524,427
2.1 Acquisition 194,631 150,000 171,271 515,902
2.2 Internal R&D -
2.3 Business merger 2,577
5,948 8,525
increase
3. Decrease in this period - -
3.1 Disposal -
4. Ending balance 467,800,067 37,809,736 15,411,501 521,021,304
Ⅱ Accumulated amortization -
121,058
1. Beginning balance 46,649,712 9,826,191 56,596,961
2. Increase in this period 4,789,651 1,202,724 953,427 6,945,802
2.1 Accrual 4,789,651 1,196,776 953,427 6,939,854
2.2 Business merger
5,948 5,948
increase
3. Decrease in this period -
3.1 Disposal - -
4. Ending balance 51,439,363 11,028,915 1,074,485 63,542,763
Ⅲ Impairment provision -
1. Beginning balance
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
2. Increase in this period -
2.1 Accrual -
3. Decrease in this period -
3.1 Disposal
4. Ending balance -
Ⅳ Book value -
3. Ending book value 416,360,704 26,780,821 14,337,016 457,478,541
4. Beginning book value 420,955,724 27,827,597 15,116,595 463,899,916
7.14 Goodwill
7.14.1 Original book value of goodwill
Unit: Yuan
Name of the invested Increase in this period Decrease in this period
Beginning
unit or matter forming Formed from Ending balance
balance Other Disposal Other
goodwill business merger
Etablissements Roullet
13,112,525 13,112,525
Fransac
Dicot Partners, S.L 92,391,901 92,391,901
SOCIETE CIVILE
AGRICOLE DU
CHATEAU DE 13,982,153 13,982,153
MIREFLEURS
(“MIREFLEURS”)
Total 105,504,426 13,982,153 119,486,579
7.15 Long-term unamortized expenses
Unit: Yuan
Increase in this Amortization in this
Item Beginning balance Other decrease Ending balance
period period
Land lease fees 59,328,587 316,285 1,010,855 58,634,017
Land-use fees 46,409,764 715,293 45,694,471
Afforestation fees 34,229,777 14,009,400 5,119,209 43,119,968
Renovation costs 23,957,390 2,407,628 6,042,785 20,322,233
Other 11,198,649 7,147,523 1,140,979 17,205,193
Total 175,124,167 23,880,836 14,029,121 184,975,882
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.16 Deferred income tax assets/liabilities
7.16.1 Un-off-set deferred income tax assets
Unit: Yuan
Ending Balance Beginning Balance
Deductible Deductible
Item Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Asset impairment provision 35,347,011 8,836,752 35,347,011 8,836,753
Unrealized profits from inter-company transactions 557,348,660 139,337,165 691,741,084 172,935,271
Deductible loss 261,244,439 65,311,110 265,793,269 66,448,318
Unpaid bonus 107,114,508 26,778,627 133,017,447 33,254,362
Dismission welfare 15,323,295 3,830,824 16,147,369 4,036,842
Deferred income 75,554,681 15,701,677 81,078,284 16,895,110
Total 1,051,932,594 259,796,155 1,223,124,464 302,406,656
7.16.2 Un-off-set deferred income tax liabilities
Unit: Yuan
Ending Balance Beginning Balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
difference tax liabilities difference tax liabilities
Assets appraisal appreciation in business merger
114,652,462 33,561,414 117,475,753 34,350,349
under non-common control
Change in fair value of available-for-sale financial
assets
Total 114,652,462 33,561,414 117,475,753 34,350,349
7.16.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
Item Ending balance Beginning balance
Deductible loss 68,985,254 41,690,051
Total 68,985,254 41,690,051
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.16.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year Ending sum Beginning sum Remark
2020 41,690,051 41,690,051
2021 27,295,203
Total 68,985,254 41,690,051 --
7.17 Other non-current assets
Unit: Yuan
Item Ending balance Beginning balance
Payment in advance for SOCIETE CIVILE
AGRICOLE DU CHATEAU DE MIREFLEURS 28,096,895
(“MIREFLEURS”)
Accounts receivable due to the transfer of
17,137,746 17,137,746
biological assets
Total 17,137,746 45,234,641
7.18 Short-term loans
7.18.1 Classification of short-term loans
Unit: Yuan
Item Ending balance Beginning balance
Pledge loan
Mortgage loan 26,671,881 25,291,133
Guaranteed loan
Fiduciary loan 639,881,300 640,290,788
Total 666,553,181 665,581,921
As at June 30, 2016, the factoring business of Atrio Group in such banks as BANKIA SA with the
accounts receivable was EUR 3,616,526 (equivalent to RMB 26,671,881 Yuan).
7.19 Bills payable
Unit: Yuan
Type Ending balance Beginning balance
Trade acceptance 10,000,000
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Bank acceptance 8,130,000 29,000,000
Total 8,130,000 29,000,000
7.20 Accounts payable
7.20.1 List of accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Within one year 365,187,764 567,791,049
From one year to two years 4,541,631 1,487,319
From two years to three years 1,483,819
Over three years
Total 371,213,214 569,278,368
7.20.2 Significant accounts payable aged more than one year
As at June 30, 2016, the Group had no significant accounts payable aged more than one year.
7.21 Advances from customers
7.21.1 List of advances from customers
Unit: Yuan
Item Ending sum Beginning sum
Within one year 356,012,056 229,993,684
From one year to two years 3,369,608 286,001
From two years to three years 286,001 530,799
Over three years 4,186,316 3,756,020
Total 363,853,981 234,566,504
7.21.2 Advances from customers of significant amount aged more than one year
As at June 30, 2016, the Company had no advances from customers of significant amount aged
more than one year.
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.22 Employee benefits payable
7.22.1 List of employee benefits payable
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Short-term remuneration 174,061,906 164,218,276 211,051,552 127,228,630
2. Post-employment welfare – defined
30,176 16,496,837 16,020,168 506,845
contribution plan
3. Dismission welfare 16,147,369 1,192,853 2,016,927 15,323,295
4.Other welfare due within one year
Total 190,239,451 181,907,966 229,088,647 143,058,770
7.22.2 List of short-term remuneration
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Salaries, bonuses, allowances and
170,720,455 146,160,715 193,565,689 123,315,481
subsidies
2. Staff welfare 179,078 4,538,999 4,507,364 210,713
3. Social insurance charges 268,019 7,371,973 7,095,930 544,062
Including: Medical insurance 268,019 6,351,204 6,143,430 475,793
Injury insurance 678,697 640,110 38,587
Maternity insurance 342,072 312,390 29,682
4. Housing fund 47,318 4,601,896 4,428,192 221,022
5. Union fee and education fee 2,847,036 1,544,693 1,454,377 2,937,352
6. Short-term compensated absences
7. Short-term profit-sharing plan
8. Other
Total 174,061,906 164,218,276 211,051,552 127,228,630
7.22.3 List of defined contribution plan
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment insurance 29,995 15,751,716 15,304,729 476,982
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Beginning balance Increase Decrease Ending balance
2. Unemployment insurance 181 745,121 715,439 29,863
3. Enterprise annuity payment
Total 30,176 16,496,837 16,020,168 506,845
7.22.4 Dismission welfare
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Compensation for server of labor
relation
2. Compensation for early retirement 16,147,369 1,192,853 2,016,927 15,323,295
Total 16,147,369 1,192,853 2,016,927 15,323,295
7.23 Taxes payable
Unit: Yuan
Item Ending balance Beginning balance
Value added tax -109,356,166 -45,821,559
Consumption tax 7,079,077 18,638,837
Business tax 509,491
Corporate income tax 23,740,019 49,020,665
Individual income tax 7,226,125 6,587,254
Urban maintenance and construction tax 962,632 4,197,401
Property tax 652,393 855,668
Urban land use tax 2,651,566 2,812,536
Other 675,020 4,484,814
Total -66,369,334 41,285,107
7.24 Interest payable
Unit: Yuan
Item Ending balance Beginning balance
Interest of long-term loans paid by installments with
659,680 643,973
repayment of principal at maturity
Interest of enterprise bonds
Interest payable of short-term loans 333,331 333,331
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Interest of preferred stock/perpetual capital securities
included in financial liabilities
Other
Total 993,011 977,304
7.25 Other payables
7.25.1 Other payables listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Distributor’s deposit payable 140,712,535 114,475,163
Equipment purchase and construction costs
247,016,490 92,580,929
payable
Transportation charges payable 11,353,913 29,713,956
Trademark use fee payable for Changyu Group
49,049,769 86,001,287
Company
Advertising expenses payable 143,110,124 76,818,144
Increased capital of minority shareholders 22,522,636 22,522,636
Employee cash deposit 9,344,048 16,078,904
Supplier’s deposit payable 5,248,221 5,644,909
Contract fee payable 37,999,565 32,936,900
Other 22,416,098 32,453,567
Total 688,773,399 509,226,395
7.25.2 Other significant accounts payable aged more than one year
Unit: Yuan
Item Ending balance Cause of unpayment or carry-over
Beijing Qinglang Ecological Agriculture Technology The procedures for capital increase haven’t
18,630,431
Development Co., Ltd. been completed
Beijing Qinglang Ecological Agriculture Technology
12,092,414 The contracting fess haven’t been settled
Development Co., Ltd.
The procedures for capital increase haven’t
Yantai De’an Investment Co., Ltd. 3,892,205
been completed
Yantai De’an Investment Co., Ltd. 4,533,932 The contracting fess haven’t been settled
Total 39,148,982 --
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.26 Non-current liabilities due within one year
Unit: Yuan
Item Ending balance Beginning balance
Long-term loans due within one year 133,174,814 156,335,647
Total 133,174,814 156,335,647
7.27 Other current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Deferred income 11,181,873 11,241,873
Total 11,181,873 11,241,873
7.28 Long-term loans
7.28.1 Classification of long-term loans
Unit: Yuan
Item Ending balance Beginning balance
Pledge loan
Mortgage loan 13,305,171 4,817,793
Guaranteed loan
Fiduciary loan 83,506,868 66,868,836
Total 96,812,039 71,686,629
Description of the classification of long-term loans:
Item Ending balance Long-term loans due within one Long-term loans due over one
year year
Pledge loan 129,914,400 129,914,400
Mortgage loan 13,373,360 68,189 13,305,171
Guaranteed loan
Fiduciary loan 86,699,093 3,192,225 83,506,868
Total 229,986,853 133,174,814 96,812,039
As at June 30, 2016, the mortgage loan referred to the loan of EUR 1,813,337 (equivalent to RMB
13,373,360 Yuan) borrowed from BANCO POPULAR ESPAOL SA by Atrio Group which
mortgaged its fixed assets of EUR 3,873,099 (equivalent to RMB 28,564,102 Yuan).
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
As at June 30, 2016, the pledge loan referred to the loan of HKD 152,000,000 (equivalent to RMB
129,914,400 Yuan) that the Company pledged the bank deposit of RMB 125,000,000 Yuan in
HSBC Bank (China) Co., Ltd. Qingdao Branch. This loan is valid from July 4, 2014 to July 3, 2016,
and the interest rate is 1.95% higher than the Hong Kong interbank benchmark interest rate for three
months, which shall be paid quarterly. As at June 30, 2016, the interest rate of this pledge loan was
2.8603%.
7.29 Deferred income
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance Forming reason
period period
Government
81,078,284 200,000 5,723,603 75,554,681
allowance
Minus: Those
included in current 11,241,873 60,000 11,181,873 --
liabilities
Non-current
69,836,411 200,000 5,663,603 64,372,808 --
liabilities
Projects related to government allowance
Unit: Yuan
Amount of
Amount
subsidy
included in
Beginning newly Other Ending
Item of liabilities non-operating Related to assets/income
balance increased changes balance
revenue in this
in this
period
period
Transferred fund by Miyun
County Committee Propaganda 2,666,835 444,473 2,222,362 Related to assets
Department
Grape bulk wine brewing project 7,609,243 717,437 6,891,806 Related to assets
Reward of investment in fixed
13,836,600 1,140,000 12,696,600 Related to assets
assets of Shihezi Chateau Project
Industrial revitalization and
technical transformation project 19,908,000 711,000 19,197,000 Related to assets
in Xinjiang
Industrial revitalization and 7,676,000 1,694,500 5,981,500 Related to assets
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Amount of
Amount
subsidy
included in
Beginning newly Other Ending
Item of liabilities non-operating Related to assets/income
balance increased changes balance
revenue in this
in this
period
period
technical transformation project
in Ningxia
Subsidy payment for wine grapes 470,000 470,000 Related to income
Modern agriculture-produced
324,000 324,000 Related to income
grape development subsidy
Special fund for Wuyouyixin
60,000 30,000 30,000 Related to assets
industrial cluster
Subsidy for agricultural science 822,000 822,000 Related to income
(Huanren) wine-making
production capacity construction 4,000,000 4,000,000 Related to assets
project
Electronic traceability system
4,526,419 333,527 4,192,892 Related to assets
project of wine
Wine industry development
930,000 930,000 Related to assets
project
Peninsula blue economic zone
10,000,000 10,000,000 Related to assets
construction project
Scientific research fund subsidy
59,890 59,890 Related to income
of National 863 Plan
Technical transformation project
of information-based system 4,640,000 290,000 4,350,000 Related to assets
construction engineering
Subsidy for project integrating IT
28,800 28,800 Related to income
application with industrialization
Cross-border e-commerce project 1,660,497 88,800 1,571,697 Related to income
Red wine phenolic substance
300,000 4,399 295,601 Related to income
research project
Grape base construction project 1,560,000 260,000 1,300,000 Related to assets
Water pollution control project 200,000 9,467 190,533 Related to assets
Total 81,078,284 200,000 5,723,603 75,554,681
Minus: Those included in current
11,241,873 11,181,873
liabilities
Non-current liabilities 69,836,411 64,372,808 --
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.30 Other non-current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Employee benefits payable 4,047,476 4,047,476
Total 4,047,476 4,047,476
7.31 Share capital
Unit: Yuan
Increase or decrease (+,-) in this period
Share
Beginning transferred
Newly issued Allocated Ending balance
balance from Other Subtotal
shares shares
accumulation
fund
Total shares 685,464,000 685,464,000
7.32 Capital reserves
Unit: Yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
Capital premium (Share capital
560,038,853 560,038,853
premium)
Other capital reserves 5,916,588 5,916,588
Total 565,955,441 565,955,441
7.33 Other comprehensive income
Unit: Yuan
Item Beginning Amount incurred in this period Ending
balance balance
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Minus: profit or
Amount loss in this
Minus: Attributable Attributable
incurred period
income to parent to minority
before transferred from
tax company shareholders
income tax in other
expenses after tax after tax
this period comprehensive
income before
1. Other comprehensive income not
to be reclassified into profit and loss
later
Including: change in net liabilities
and net assets from recalculated
defined benefit plan
Share enjoyed in other
comprehensive income not to be
reclassified into profit and loss in
invested unit under equity law
2. Other comprehensive income to
be reclassified into profit and loss -10,442,512 6,701,754 6,249,919 451,835 -4,192,593
later
Including: share enjoyed in other
comprehensive income to be
reclassified into profit and loss in
invested unit under equity law
Profit and loss from changes
in fair value of financial assets for
sale
Profit and loss from
reclassification of held-to-maturity
investment into fair value of
financial assets for sale
Effective part of profit and
loss of cash-flow hedge
Difference in translation of
Foreign Currency Financial -10,442,512 6,701,754 6,249,919 451,835 -4,192,593
Statement
Total other comprehensive income -10,442,512 6,701,754 6,249,919 451,835 -4,192,593
7.34 Surplus reserves
Unit: Yuan
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Beginning balance Increase in this period Decrease in this period Ending balance
Legal surplus reserves 342,732,000 342,732,000
Free surplus reserves
Reserve fund
Enterprise expansion fund
Other
Total 342,732,000 342,732,000
7.35 Undistributed profit
Unit: Yuan
Item This period Prior period
Undistributed profit at the end of prior period before adjustment 5,980,390,074 5,251,920,374
Total Undistributed profit at the beginning of the period before adjustment (increase
listed with+ , and decrease listed with -)
Undistributed profit at the beginning of the period after adjustment 5,980,390,074 5,251,920,374
Plus: Net profit for owner of the parent company 695,021,847 1,030,073,860
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 301,604,160
Common dividend transferred to share capital
Undistributed profit at the end of period 6,675,411,921 5,980,390,074
7.36 Operating income and cost
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 2,748,285,416 899,973,878 2,822,557,981 929,890,756
Other business 4,747,383 2,760,226 3,235,269 2,631,987
Total 2,753,032,799 902,734,104 2,825,793,250 932,522,743
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.37 Business taxes and surcharges
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 105,763,800 84,797,329
Business Tax 1,175,187 1,518,690
Urban maintenance and construction tax 24,721,309 28,968,941
Education surcharges 18,089,897 15,286,114
Other 3,331,599 10,040,014
Total 153,081,792 140,611,088
7.38 Selling expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Advertising expenses 332,116,022 360,539,291
Transportation & handling expenses 66,063,407 65,691,087
Trademark usage expenses 46,273,367 50,302,290
Storage and lease expenses 39,026,546 36,943,556
Employee remunerations 104,719,946 92,074,479
Travel expenses 11,904,193 11,066,307
Other 50,633,753 36,808,506
Total 650,737,234 653,425,516
7.39 Administrative expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Employee remunerations 42,548,604 42,052,514
Rental expenses 4,259,474 4,284,471
Depreciation expenses 21,005,970 18,919,997
Amortization expenses 7,782,091 5,652,361
Office expenses 8,197,736 7,217,464
Travel expenses 2,312,625 2,280,457
Business entertainment expenses 2,639,867 3,221,229
Building tax, stamp duty & other taxes 10,233,687 10,197,817
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Repair expenses 5,623,236 5,202,754
Contracting expenses 9,241,885 9,231,363
Other 8,850,670 11,509,913
Total 122,695,845 119,770,340
7.40 Financial expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 15,830,699 11,180,635
Minus: Interest income 7,189,121 10,172,582
Plus: Commission charges 859,954 655,685
Exchange gain or loss 1,486,701 -5,544,641
Total 10,988,233 -3,880,903
7.41 Non-operating income
Unit: Yuan
Amount incurred in Amount incurred in Amount included in the current
Item
this period prior period non-recurring profits/losses
Total gains on disposal of non-current assets 94,567 2,985 94,567
Including: Gains on disposal of fixed assets 94,567 2,985 94,567
Gains on disposal of intangible
assets
Gains on debt recombination
Gains on exchange of non-monetary assets
Grains on donations
Government allowance 18,145,874 6,527,952 18,145,874
Other 3,693,085 2,265,897 3,693,085
Total 21,933,526 8,796,834 21,933,526
Government allowance included in the current profits/losses:
Unit: Yuan
Amount incurred in this Amount incurred in
Item of allowance Related to assets/income
period prior period
Funds to support major projects 3,567,410 3,942,973 Related to assets
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Funds to support small and medium-sized
2,062,994 1,508,949 Related to assets
Enterprises
Tax returns 12,116,257 Related to income
Other 399,213 1,076,030 Related to income
Total 18,145,874 6,527,952 --
7.42 Non-operating expenses
Unit: Yuan
Amount incurred in this Amount incurred in Amount included in the current non-recurring
Item
period prior period profits/losses
Total loss on disposal of 110,052 1,564 110,052
non-current assets
Including: Loss on disposal of
110,052 1,564 110,052
fixed assets
Loss on disposal of intangible
assets
Loss on debt recombination
Loss on exchange of non-monetary
assets
Donation 15,000 303,000 15,000
Fine, penalty and overdue fine paid
165,589 36,021 165,589
due to violation of laws and
administrative regulations
Other 53,135 13,366 53,135
Total 343,776 353,951 343,776
7.43 Income tax expenses
7.43.1 List of income tax expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Current income tax expenses 196,893,915 213,682,126
Deferred income tax expenses 41,821,566 32,044,975
Total 238,715,481 245,727,101
7.43.2 Adjustment process of accounting profit and income tax expenses
Unit: Yuan
Item Amount incurred in this period
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Total profit 934,385,341
Income tax expenses calculated according to the legal/applicable tax rate 233,596,335
Influence of different tax rates applicable to subsidiary -3,875,421.75
Influence of income tax in the term before adjustment
Influence of nontaxable income
Influence of non-deductible costs, expenses and losses 2,170,767
Influence of deductible loss from use of unconfirmed deferred income tax assets in prior period
Influence of deductible temporary difference or deductible loss of unconfirmed deferred income tax
6,823,801
assets in this period
Income tax expense 238,715,481
7.44 Other comprehensive income
See details in Note 33.
7.45 Items of cash flow statement
7.45.1 Other cash received related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Government allowance income 506,015 4,518,193
Other 5,457,993 3,694,770
Withdrawal of cash deposit for notes payable 21,870,000
Total 27,834,008 8,212,963
7.45.2 Other cash paid related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 403,264,891 349,236,795
Administrative expenses 37,642,759 35,679,002
Other 1,595,101 5,414,680
Total 442,502,751 390,330,477
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.45.3 Other cash paid related to financial activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
R&D Company’ long-term loans pledged by
20,000,000
fixed-term deposits
Total 20,000,000
7.46 Supplementary information to cash flow statement
7.46.1 Supplementary information to cash flow statement
Unit: Yuan
Supplementary materials Amount incurred in this period Amount incurred in prior period
1. Cash flows from operating activities calculated by
-- --
adjusting the net profit:
Net profit 695,669,860 746,060,248
Plus: Provision for impairment of assets
Depreciation of fixed assets, oil-and-gas assets and
91,227,146 76,223,958
productive biological assets
Intangible assets amortization 6,939,854 5,705,246
Amortization of long term prepaid expenses 14,029,121 10,637,506
Losses on disposal of fixed assets, intangible assets and
15,485 -1,421
other long-term assets (profit listed with “－”)
Losses on retirement of fixed assets (profit listed with “－”)
Losses on fair value change (profit listed with “－”)
Financial costs (profit listed with “－”) 11,808,339 2,219,651
Investment losses (profit listed with “－”)
Decrease in deferred income tax assets (increase listed with
42,610,501 32,098,120
“-”)
Increase of deferred income tax liabilities (decrease listed
-788,935 -53,145
with “－”)
Decrease in inventories (increase listed with “-”) 413,879,818 593,980,807
Decrease in operating receivables (increase listed with “-”) -395,702,109 -290,154,233
Increase in operating payable (decrease listed with “-”) -196,940,711 -249,553,677
Other
Net cash flows from operating activities 682,748,369 927,163,060
2. Significant investment and financing activities not -- --
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Supplementary materials Amount incurred in this period Amount incurred in prior period
involving cash deposit and withdrawal:
Debt transferred into assets
Convertible corporate bond due within 1 year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent: -- --
Ending balance of cash 1,643,935,054 1,431,026,523
Minus: Beginning balance of cash 1,092,241,661 960,472,274
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent 551,693,393 470,554,249
7.46.2 Net cash paid for acquiring subsidiaries in this period
Unit: Yuan
Amount
Cash or cash equivalents paid for business merger in this period 764,213
Including: --
Mirefleurs 764,213
Minus: Cash or cash equivalents held by the subsidiaries on the
1,777
purchasing date
Including: --
Mirefleurs 1,777
Plus: Cash or cash equivalents paid for business merger in previous
terms
Including: --
Net cash paid for acquiring subsidiaries 762,436
7.46.3 Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
1. Cash 1,643,935,054 1,431,026,523
Including: Cash on hand 189,184 484,571
Bank deposits on demand 1,643,745,870 1,430,541,952
Other monetary capital on demand
Due from central bank available for payment
Due from the industry
Inter-bank lending
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
2. Cash equivalents
Including: Bond investment due within three months
3. Balance of cash and cash equivalents at the end of period 1,643,935,054 1,431,026,523
Including: restricted use of parent company or subsidiaries
in the group
7.47 Assets with ownership or use right restrictions
Unit: Yuan
Item Ending book value Reason for restriction
Loan cash deposit, housing fund and guaranty money for
Monetary capital 182,069,398
deposit in unit card
Notes receivable
Inventory
Fixed assets 28,564,102 Mortgage loan
Intangible assets
Accounts receivable 26,671,881 Mortgage loan
Total 237,305,381 --
7.48 Foreign currency monetary items
7.48.1 Foreign currency monetary items
Unit: Yuan
Item Ending foreign currency balance Translation exchange rate Ending converted RMB balance
Long-term loans due
-- -- 129,914,400
within one year
Including: USD
EUR
HKD 152,000,000 0.8547 129,914,400
Long-term loans -- -- 44,250,000
Including: USD
EUR 6,000,000 7.375 44,250,000
HKD
7.48.2 Overseas operational entities
The currency adopted by the overseas subsidiaries of the Company according to the main economic
environment where the operation is located shall be chosen as the recording currency. Atrio Group
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
and Francs Champs Participations SAS (“Francs Champs”) both use EUR as the recording currency,
which didn’t have foreign currency assets and liabilities at the end of this period.
8. Changes in scope of consolidation
8.1 Business merger under non-common control
8.1.1 Business merger under non-common control in this period
Unit: Yuan
Income of the Net profit of
purchased the purchased
Determination
Time of Cost of from the from the
Name of the Shareholding Way of equity Purchasing basis of the
equity equity purchasing purchasing
purchased ratio acquisition date purchasing
acquisition acquisition date to the date to the
date
end of this end of this
period period
Payment
completed
Mirefleurs 2016.01.01 23,331,010 90 % Purchase 2016.01.01 with 525,335 -212,461
acquisition of
equity
Other description:
According to the Equity Transfer Contract signed between Francs Champs Participations SAS
(hereinafter referred to as “Francs Champs”), one wholly-owned subsidiary of the Company, and
France Chateau Castel Company, Francs Champs purchased 90% of the shares held by Chateau
Castel in Societe Civile Agricole du Chateau de Mirefleurs (“Mirefleurs”) with the cash of EUR
3.33 Million (equivalent to RMB 2,331,010 Yuan).
8.1.2 Combined cost and goodwill
Unit: Yuan
Combined cost Mirefleurs
--Cash 23,331,010
-- Fair value of the non-cash assets
-- Fair value of the issued or assumed debts
-- Fair value of the issued equity securities
-- Fair value of the contingent consideration
-- Fair value of the stock equity held before the purchasing date on the
purchasing date
--Other
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Combined cost Mirefleurs
Total combined cost 23,331,010
Minus: Fair value share of the acquired net identifiable assets 9,348,857
Amount of the share that the goodwill/combined cost is less than the
13,982,153
fair value of the net identifiable assets
8.1.3 Identifiable assets and liabilities of the purchased on the purchasing date
Unit: Yuan
Item Mirefleurs
Fair value on the purchasing date Book value on the purchasing date
Assets:
Monetary capital 1,777 1,777
Accounts receivable 65,652 65,652
Inventory 9,925,906 9,925,906
Fixed assets 8,043,320 8,043,320
Intangible assets 2,486 2,486
Biological assets 1,768,441 1,768,441
Total assets 19,807,582 19,807,582
Liabilities:
Loans 1,108,029 1,108,029
Payables 8,311,934 8,311,934
Deferred tax liabilities
Total liabilities 9,419,963 9,419,963
Net assets 10,387,619 10,387,619
Minus: Minority equity 1,038,762 1,038,762
Net assets acquired 9,348,857 9,348,857
9. Equity in other entities
9.1 Equity in the subsidiaries
9.1.1 Constitution of enterprise group
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Acquired from a business
Shihezi City, Xinjiang Uygur Shihezi City, Xinjiang Uygur Manufacturing
Xinjiang Tianzhu (a) 60 % combination under
Autonomous Region, China Autonomous Region, China industry
non-common control
Acquired from a business
Francs Champs Participations
Cognac, France Cognac, France Trading 100 % combination under
SAS
non-common control
Acquired from a business
Atrio Group Navarra, Spain Navarra, Spain Sales 75 % combination under
non-common control
Acquired from a business
Wine
Mirefleurs Bordeaux, France Bordeaux, France 90 % combination under
manufacturing
non-common control
Beijing Changyu Wine
Acquired by establishment
Marketing Co., Ltd. (“Beijing Beijing City, China Beijing City, China Sales 100 %
or investment
Marketing”)
Yantai Kylin Packaging Co., Yantai City, Shandong Yantai City, Shandong Province, Manufacturing Acquired by establishment
100 %
Ltd. (“Kylin Packaging”) Province, China China industry or investment
Yantai Chateau
Yantai City, Shandong Yantai City, Shandong Province, Manufacturing Acquired by establishment
Changyu-Castel Co., Ltd. 70 %
Province, China China industry or investment
(“Chateau Changyu”) (b)
Changyu (Jingyang) Pioneer
Xianyang City, Shaanxi Xianyang City, Shaanxi Manufacturing Acquired by establishment
Wine Co., Ltd. (“Jingyang 90 % 10 %
Province, China Province, China industry or investment
Wine”)
Yantai Changyu Wine Sales Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Sales 100 %
Co., Ltd. (“Sales Company”) Province, China China or investment
Langfang Development Zone
Langfang City, Hebei Langfang City, Hebei Province, Manufacturing Acquired by establishment
Castel-Changyu Wine Co., 39 % 10 %
Province, China China industry or investment
Ltd. (“Langfang Castel”) (c)
Changyu (Jingyang) Pioneer
Xianyang City, Shaanxi Xianyang City, Shaanxi Acquired by establishment
Wine Sales Co., Ltd. Sales 10 % 90 %
Province, China Province, China or investment
(“Jingyang Sales”)
Langfang Changyu Pioneer
Langfang City, Hebei Langfang City, Hebei Province, Acquired by establishment
Wine Sales Co., Ltd. Sales 10 % 90 %
Province, China China or investment
(“Langfang Sales”)
Shanghai Changyu Wine
Acquired by establishment
Marketing Co., Ltd. Shanghai City, China Shanghai City, China Sales 30 % 70 %
or investment
(“Shanghai Marketing”)
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Beijing Changyu AFIP
Eco-agriculture Development Miyun County, Beijing City, Miyun County, Beijing City, Acquired by establishment
Sales 100 %
Co., Ltd. (“Eco-agriculture China China or investment
Development”)
Beijing Changyu AFIP Wine
Manufacturing Acquired by establishment
Chateau Co., Ltd. (“Beijing Beijing City, China Beijing City, China 70 %
industry or investment
Chateau”) (d)
Yantai Changyu Wine Sales Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Sales 90 % 10 %
Co., Ltd. ( “Wine Sales”) Province, China China or investment
Yantai Changyu Pioneer
Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
International Wine Co., Ltd. Sales 70 % 30 %
Province, China China or investment
(“Pioneer International”)
Hangzhou Changyu Wine
Hangzhou City, Zhejiang Hangzhou City, Zhejiang Acquired by establishment
Sales Co., Ltd. (“Hangzhou Sales 100 %
Province, China Province, China or investment
Changyu”)
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui Planting Acquired by establishment
Ningxia Growing 100 %
Autonomous Region, China Autonomous Region, China industry or investment
Huanren Changyu National
Benxi City, Liaoning Benxi City, Liaoning Province, Acquired by establishment
Wine Sales Co., Ltd. Sales 100 %
Province, China China or investment
(“National Wine”)
Liaoning Changyu Icewine
Benxi City, Liaoning Benxi City, Liaoning Province, Manufacturing Acquired by establishment
Chateau Co., Ltd. (“Icewine 51 %
Province, China China industry or investment
Chateau”) (e)
Yantai Development Zone
Changyu Trading Co., Ltd. Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Sales 100 %
(“Development Zone Province, China China or investment
Trading”)
Shenzhen Changyu Wine
Shenzhen City, Guangdong Shenzhen City, Guangdong Acquired by establishment
Marketing Co., Ltd. Sales 100 %
Province, China Province, China or investment
(“Shenzhen Marketing”)
Yantai Fushan District
Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Changyu Trading Co., Ltd. Sales 100 %
Province, China China or investment
(“Fushan Trading”)
Beijing Changyu AFIP
Miyun County, Beijing City, Miyun County, Beijing City, Service Acquired by establishment
International Conference 100 %
China China industry or investment
Center (“Conference Center”)
Beijing Changyu AFIP Miyun County, Beijing City, Miyun County, Beijing City, Tourist 100 % Acquired by establishment
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Tourism and Culture Co., Ltd. China China industry or investment
(“AFIP Tourism”)
Changyu (Ningxia) Pioneer
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui Manufacturing Acquired by establishment
Wine Co., Ltd. (“Ningxia 100 %
Autonomous Region, China Autonomous Region, China industry or investment
Wine”)
Yantai Changyu Tinlot
Yantai City, Shandong Yantai City, Shandong Province, Prepackaged Acquired by establishment
Chateau Co., Ltd. (“Tinlot 65 % 35 %
Province, China China food wholesale or investment
Chateau”)
Changyu (Qingtongxia) Wine
Qingtongxia City, Ningxia Hui Qingtongxia City, Ningxia Hui Acquired by establishment
Sales Co., Ltd. (“Qingtongxia Sales 100 %
Autonomous Region, China Autonomous Region, China or investment
Sales”)
Shihezi City, Xinjiang Uygur Shihezi City, Xinjiang Uygur Manufacturing Acquired by establishment
Shihezi Chateau 100 %
Autonomous Region, China Autonomous Region, China industry or investment
Chateau Changyu Moser XV
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui Manufacturing Acquired by establishment
Ningxia Co., Ltd. (“Ningxia 100 %
Autonomous Region, China Autonomous Region, China industry or investment
Chateau”)
Chateau Changyu Rena
Xianyang City, Shaanxi Xianyang City, Shaanxi Manufacturing Acquired by establishment
Shaanxi Co., Ltd. (“Chang’an 100 %
Province, China Province, China industry or investment
Chateau”)
Yantai Changyu Wine
Research, Development & Yantai City, Shandong Yantai City, Shandong Province, Manufacturing Acquired by establishment
100 %
Manufacture Co., Ltd. Province, China China industry or investment
(“R&D Company”)
Changyu (Huanren) Pioneer Wine making
Benxi City, Liaoning Benxi City, Liaoning Province, Acquired by establishment
Wine Co., Ltd. (“Huanren project 100 %
Province, China China or investment
Wine”) establishment
Xinjiang Changyu Wine Sales Shihezi City, Xinjiang Uygur Shihezi City, Xinjiang Uygur Acquired by establishment
Sales 100 %
Co., Ltd. (“Xinjiang Sales”) Autonomous Region, China Autonomous Region, China or investment
Ningxia Changyu Trading Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui Acquired by establishment
Sales 100 %
Co., Ltd. (“Ningxia Trading”) Autonomous Region, China Autonomous Region, China or investment
Shaanxi Changyu Rena Wine
Xianyang City, Shaanxi Xianyang City, Shaanxi Acquired by establishment
Sales Co., Ltd. (“Shaanxi Sales 100 %
Province, China Province, China or investment
Sales”)
Penglai Changyu Wine Sales Penglai City, Shandong Penglai City, Shandong Province, Acquired by establishment
Sales 100 %
Co., Ltd. (“Penglai Wine”) Province, China China or investment
Laizhou Changyu Wine Sales Laizhou City, Shandong Laizhou City, Shandong Acquired by establishment
Sales 100 %
Co., Ltd. (“Laizhou Sales”) Province, China Province, China or investment
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Lanzhou Changyu Wine
Lanzhou City, Gansu Lanzhou City, Gansu Province, Acquired by establishment
Marketing Co., Ltd. Sales 100 %
Province, China China or investment
(“Lanzhou Marketing”)
Beijing Changyu Trading Co., Acquired by establishment
Beijing City, China Beijing City, China Sales 100 %
Ltd. (“Beijing Trading”) or investment
Tianjin Changyu Pioneer
Acquired by establishment
Wine Sales Co., Ltd. Tianjin City, China Tianjin City, China Sales 100 %
or investment
(“Tianjin Pioneer”)
Fuzhou Changyu Pioneer
Fuzhou City, Fujian Province, Fuzhou City, Fujian Province, Acquired by establishment
Wine Co., Ltd. (“Fuzhou Sales 100 %
China China or investment
Pioneer”)
Nanjing Changyu Pioneer
Nanjing City, Jiangsu Nanjing City, Jiangsu Province, Acquired by establishment
Wine Co., Ltd. (“Nanjing Sales 100 %
Province, China China or investment
Pioneer”)
Xianyang Changyu Pioneer
Xianyang City, Shaanxi Xianyang City, Shaanxi Acquired by establishment
Wine Sales Co., Ltd. Sales 100 %
Province, China Province, China or investment
(“Xianyang Pioneer”)
Shenyang Changyu Pioneer
Shenyang City, Liaoning Shenyang City, Liaoning Acquired by establishment
Wine Co., Ltd. (“Shenyang Sales 100 %
Province, China Province, China or investment
Pioneer”)
Jinan Changyu Pioneer Wine Jinan City, Shandong Jinan City, Shandong Province, Acquired by establishment
Sales 100 %
Co., Ltd. (“Jinan Pioneer”) Province, China China or investment
Shanghai Changyu Pioneer
Acquired by establishment
Wine Co., Ltd. (“Shanghai Shanghai City, China Shanghai City, China Sales 100 %
or investment
Pioneer”)
Fuzhou Changyu Pioneer
Fuzhou City, Jiangxi Province, Fuzhou City, Jiangxi Province, Acquired by establishment
Wine Co., Ltd. (“Fuzhou Sales 100 %
China China or investment
Pioneer”)
Shijiazhuang Changyu
Shijiazhuang City, Hebei Shijiazhuang City, Hebei Acquired by establishment
Pioneer Wine Sales Co., Ltd. Sales 100 %
Province, China Province, China or investment
(“Shijiazhuang Pioneer”)
Hangzhou Yuzefeng Trading
Hangzhou City, Zhejiang Hangzhou City, Zhejiang Acquired by establishment
Co., Ltd. (“Hangzhou Sales 100 %
Province, China Province, China or investment
Yuzefeng”)
Jilin Changyu Pioneer Wine Changchun City, Jilin Changchun City, Jilin Province, Acquired by establishment
Sales 100 %
Co., Ltd. (“Jilin Pioneer”) Province, China China or investment
Beijing Changyu Pioneer Beijing City, China Beijing City, China Sales 100 % Acquired by establishment
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Wine Sales Co., Ltd. or investment
(“Beijing Pioneer”)
Harbin Changyu Pioneer
Harbin City, Heilongjiang Harbin City, Heilongjiang Acquired by establishment
Wine Sales Co., Ltd. Sales 100 %
Province, China Province, China or investment
(“Harbin Pioneer”)
Hunan Changyu Pioneer
Changsha City, Hunan Changsha City, Hunan Province, Acquired by establishment
Wine Co., Ltd. (“Hunan Sales 100 %
Province, China China or investment
Pioneer”)
Yinchuan Changyu Pioneer
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui Acquired by establishment
Wine Co., Ltd. (“Yinchuan Sales 100 %
Autonomous Region, China Autonomous Region, China or investment
Pioneer”)
Kunming Changyu Pioneer
Kunming City, Yunnan Kunming City, Yunnan Province, Acquired by establishment
Wine Co., Ltd. (“Kunming Sales 100 %
Province, China China or investment
Pioneer”)
Chongqing Changyu Pioneer
Acquired by establishment
Wine Sales Co., Ltd. Chongqing City, China Chongqing City, China Sales 100 %
or investment
(“Chongqing Pioneer”)
Zhengzhou Changyu Pioneer
Zhengzhou City, Henan Zhengzhou City, Henan Acquired by establishment
Wine Co., Ltd. (“Zhengzhou Sales 100 %
Province, China Province, China or investment
Pioneer”)
Wuhan Changyu Pioneer
Wuhan City, Hubei Province, Wuhan City, Hubei Province, Acquired by establishment
Wine Co., Ltd. (“Wuhan Sales 100 %
China China or investment
Pioneer”)
Taiyuan Changyu Pioneer
Taiyuan City, Shanxi Taiyuan City, Shanxi Province, Acquired by establishment
Wine Co., Ltd. (“Taiyuan Sales 100 %
Province, China China or investment
Pioneer”)
Hohhot Changyu Pioneer
Hohhot City, Inner Mongolia Hohhot City, Inner Mongolia Acquired by establishment
Wine Co., Ltd. (“Hohhot Sales 100 %
Autonomous Region , China Autonomous Region , China or investment
Pioneer”)
Chengdu Changyu Pioneer
Chengdu City, Sichuan Chengdu City, Sichuan Province, Acquired by establishment
Wine Co., Ltd. (“Chengdu Sales 100 %
Province, China China or investment
Pioneer”)
Nanning Changyu Pioneer Nanning City, Guangxi
Nanning City, Guangxi Zhuang Acquired by establishment
Wine Co., Ltd. (“Nanning Zhuang Autonomous Region, Sales 100 %
Autonomous Region, China or investment
Pioneer”) China
Lanzhou Changyu Pioneer Lanzhou City, Gansu Lanzhou City, Gansu Province, Acquired by establishment
Sales 100 %
Wine Co., Ltd. (“Lanzhou Province, China China or investment
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Pioneer”)
Yantai Roullet-Fransac
Imported Wine Sales Co., Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Sales 100 %
Ltd. (“Yantai Province, China China or investment
Roullet-Fransac”)
Hefei Changyu Pioneer Wine Hefei City, Anhui Province, Hefei City, Anhui Province, Acquired by establishment
Sales 100 %
Co., Ltd. (“Hefei Pioneer”) China China or investment
Urumchi Changyu Pioneer
Urumchi City, Xinjiang Uygur Urumchi City, Xinjiang Uygur Acquired by establishment
Wine Co., Ltd. (“Urumchi Sales 100 %
Autonomous Region, China Autonomous Region, China or investment
Pioneer”)
Guizhou Changyu Pioneer
Guiyang City, Guizhou Guiyang City, Guizhou Province, Acquired by establishment
Wine Co., Ltd. (“Guizhou Sales 100 %
Province, China China or investment
Pioneer”)
Explanation for difference between the proportion of shareholding and proportion of voting power in the
subsidiaries:
(a) Xinjiang Tianzhu is a subsidiary of the Company obtained by merger and acquisition, whose
60% of the shares are held by the Company. The Company exercises full control over the operation,
investment and financing policies of Xinjiang Tianzhu by contract arrangement. The contract
arrangement will terminate on December 31, 2018.
(b) Changyu Chateau is a Sino-foreign joint venture established by the Company and a foreign
investor, whose 70% of the shares are held by the Company. The Company exercises full control
over the operation, investment and financing policies of Changyu Chateau by contract arrangement.
The contract arrangement will terminate on December 31, 2022.
(c) Langfang Castel is a Sino-foreign joint venture established by the Company and a foreign
investor, whose 49% of the shares are held by the Company and its subsidiaries. The Company
exercises full control over the operation, investment and financing policies of Langfang Castel by
contract arrangement. The contract arrangement will terminate on December 31, 2022.
(d) Beijing Chateau is a limited liability company established by the Company and a domestic
investor, whose 70% of the shares are held by the Company. The Company exercises full control
over the operation, investment and financing policies of Beijing Chateau by contract arrangement.
The contract arrangement will terminate on September 2, 2019.
(e) Icewine Chateau is a Sino-foreign joint venture established by the Company and a foreign
investor, whose 51% of the shares are held by the Company. The Company exercises full control
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
over the operation, investment and financing policies of Icewine Chateau by contract arrangement.
The contract arrangement will terminate at December 31, 2016.
9.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
Dividend declared to be
Profit/loss attributable to Balance of minority
Shareholding proportion distributed to minority
Name of subsidiary minority shareholders in shareholder’s interest at
of minority shareholders shareholders in this
this period the end of period
period
Xinjiang Tianzhu 40% 56,093,912
Atrio Group 25 % 669,259 33,768,700
Changyu Chateau 30 % 12,365,016
Langfang Castel 51 % 22,702,522
Beijing Chateau 30 % 35,293,868
Icewine Chateau 49 % 33,319,062
Explanation for difference between the proportion of shareholding and proportion of voting power
of the minority shareholders in the subsidiaries:
See details in Note 9.1.
9.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance
Name of
Non-current Non-current
subsidiary Current assets Total assets Current liabilities Total liabilities
assets liabilities
Xinjiang
98,432,365 80,498,095 178,930,460 47,768,551 5,336,114 53,104,664
Tianzhu
Changyu
137,074,770 117,907,315 254,982,086 193,566,232 193,566,232
Chateau
Langfang
23,378,862 21,415,349 44,794,211 8,198,827 8,198,827
Castel
Beijing
221,531,235 512,424,347 733,955,582 561,347,980 1,333,418 562,681,397
Chateau
Icewine
61,127,237 28,397,506 89,524,743 34,821,888 100,000 34,921,888
Chateau
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Ending balance
Name of
Non-current Non-current
subsidiary Current assets Total assets Current liabilities Total liabilities
assets liabilities
Atrio Group 256,585,879 158,172,897 414,758,775 198,016,686 81,667,290 279,683,976
Unit: Yuan
Beginning balance
Name of
Non-current Non-current
subsidiary Current assets Total assets Current liabilities Total liabilities
assets liabilities
Xinjiang
101,018,712 81,709,715 182,728,427 15,554,068 5,336,114 20,890,182
Tianzhu
Changyu
156,538,810 118,256,609 274,795,419 191,898,436 191,898,436
Chateau
Langfang
30,867,940 22,471,694 53,339,634 7,913,957 7,913,957
Castel
Beijing
216,643,935 523,151,845 739,795,780 588,733,969 1,777,890 590,511,859
Chateau
Icewine
43,224,419 29,322,675 72,547,094 12,623,467 100,000 12,723,467
Chateau
Atrio Group 277,879,914 157,297,623 435,177,537 259,625,473 44,813,493 304,438,966
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Name of Total Total
Operating Operating Operating Operating cash
subsidiary Net profit comprehensive Net profit comprehensive
income cash flow income flow
income income
Xinjiang
71,414,395 8,855,720 8,855,720 10,345,022 65,111,307 643,354 643,354 2,190,239
Tianzhu
Changyu
25,120,685 -1,835,054 -1,835,054 16,363,694 37,153,833 787,674 787,674 -1,684,390
Chateau
Langfang
23,893,566 1,141,604 1,141,604 8,003,926 27,859,048 456,864 456,864 -1,645,940
Castel
Beijing
96,780,881 22,140,264 22,140,264 19,711,484 75,082,711 8,118,305 8,118,305 50,443,509
Chateau
Icewine
16,400,216 -3,220,773 -3,220,773 -2,213,030 27,030,519 715,756 715,756 -4,588,284
Chateau
Atrio Group 138,454,701 2,677,035 4,336,228 -10,296,603
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10. Risks related to financial instruments
The main financial instruments of this Group include monetary capital, bills receivable, accounts
receivable, interest receivable, other receivables, other non-current assets, short-term loans, bills payable,
accounts payable, other payables, interest payable and long-term loans. See details of each financial
instrument in Note 7. The risks related to these financial instruments and risk management policies adopted
by this Group to reduce these risks are shown as follows. The management of this Group manages and
monitors these risk exposures to ensure that the above-mentioned risks are controlled within a defined scope.
This Group adopts sensitivity analysis techniques to analyze the possible influence of possible reasonable
changes of risk variables on the current profit and loss and shareholders’ equity. Since any risk variable
merely changes independently and the final influence of relevance between variables on the change of
certain risk variable will exert a great effect, the following content is carried out under the hypothesis that
each variable changes independently.
10.1 Risk management objective and policy
The risk management objective of this Group is to achieve proper balance between risks and benefits, to
minimize the negative influence of the risks on the business performance of this Group and to maximize the
shareholders’ benefit. Based on this risk management objective, the basic risk management strategy of this
Group is to determine and analyze various risks faced by this Group, to set up proper risk tolerance bottom
line and to carry out risk management, and to supervise various risks timely and reliably to control the risks
within a defined scope.
10.1.1 Market risk
① Foreign exchange risk
Foreign exchange risk refers to risk of causing loss due to exchange rate fluctuation. The foreign exchange
risk borne by this Group is mainly relevant to EUR and HKD, except that the overseas subsidiaries of this
Group carry out purchase and sales with EUR and except for loans in EUR and HKD, other main business
activities of this Group are priced and settled with RMB. As at June 30, 2016, except that the assets and
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liabilities mentioned in the table below were the balance in EUR and HKD, the assets and liabilities of this
Group were all the balance in RMB. The foreign exchange risk caused by the assets and liabilities of balance
in these currencies may exert an influence on the business performance of this Group.
Unit: Yuan
Item Ending balance Beginning balance
Monetary capital 151,843,602
Short-term loans 103,297,447
Long-term loans due within one year 129,914,400 127,345,600
Long-term loans 44,250,000 56,761,600
This Group pays close attention to the influence of exchange rate fluctuation on the foreign exchange risk of
this Group. This Group has not taken any measures to avoid the foreign exchange risk at present.
Sensitivity analysis of foreign exchange risk
With the other variables unchanged, the pre-tax influence of possible reasonable exchange rate fluctuation on
current profit and loss and shareholders’ equity is as follows:
Unit: Yuan
This year
Item Exchange rate fluctuation
Influence on profit of this period Influence on shareholders’ equity
HKD 5% appreciation against RMB -6,495,720 -6,495,720
HKD 5% depreciation against RMB 6,495,720 6,495,720
EUR 5% appreciation against RMB -2,212,500 -2,212,500
EUR 5% depreciation against RMB 2,212,500 2,212,500
② Interest rate risk – risk of change in cash flow
The risk of change in cash flow of financial instruments caused by interest rate change of this Group is
mainly relevant to the monetary capital and long-term loan at floating interest rate. The policy of this Group
is to maintain the floating interest rate of these loans to eliminate the risk of change in fair value of the
interest rate.
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Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the hypothesis that the change in market interest rate
influences the interest income or expense of financial instruments at variable rate.
The management of this Group thinks that the interest rate risk of deposit in bank borne by this Group is not
significant, therefore the sensitivity analysis of interest rate of deposit in bank is not disclosed here.
On the basis of the above-mentioned hypothesis, with the other variables unchanged, the pre-tax influence of
possible reasonable exchange rate fluctuation on current profit and loss and shareholders’ equity is as
follows:
Unit: Yuan
This year
Item Interest rate change
Influence on profit of this period Influence on shareholders’ equity
Bank loan Increase by 50 BP -1,305,630 -1,305,630
Bank loan Decrease by 50 BP 1,305,630 1,305,630
10.1.2 Credit risk
As at June 30, 2016, the largest credit risk exposure possibly causing the financial loss of this
Group was mainly caused by the loss generated by the financial assets of this Group caused by
failure of another party of the contract in fulfilling obligations.
To lower the credit risk, this Group only trades with the recognized and reputable third party. In
accordance with the policy of this Group, credit check shall be carried out for all customers
requiring to adopt form of credit to trade. In addition, this Group conducts continuous monitoring
on the balance of accounts receivable to ensure that this Group will not face major risk of bad debts.
For transactions not settled with recording currency of relevant business units, unless the credit
control department of this Group specially approves, this Group will not provide credit trade terms.
In addition, this Group audits the collection of each single significant account receivable on each
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date of balance sheet to ensure that sufficient bad-debt provision is accrued for accounts unable to
be collected. Therefore, the management of this Group thinks the credit risk borne by this Group is
greatly reduced.
Since this Group only trades with the recognized and reputable third party, no collateral is required.
The credit risk is managed centrally according to the customer/counter-party, geographic area and
industry. As at June 30, 2016, 28.8% of accounts receivable of this Group came from top five
borrowers in accounts receivable of this Group (December 31, 2015: 28.4%). This Group holds no
collateral or other credit enhancement for balance of accounts receivable.
Analysis of financial assets with single impairment incurred
On the date of balance sheet, for accounts receivable of Tiantong Securities Co., Ltd. with single
confirmed impairment incurred, since this company is insolvent, this Group has accrued bad-debt
provision in full.
10.1.3 Liquidity risk
When managing the liquidity risk, this Group reserves and monitors the cash and cash equivalents
the management considers sufficient to satisfy the operation need of this Group and reduce the
influence of fluctuation in cash flow. The management of this Group monitors the use of bank loans
and ensures to abide by the loan agreement.
10.1.4 Disclosure of fair value – fair value of financial assets and liabilities not measured by fair
value
The management of this Group thinks that, as at June 30, 2016, the book value of financial assets
and liabilities measured by amortized cost was close to the fair value thereof.
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11. Related parties and related transactions
11.1 Particulars of the parent company of the Company
Proportion of Proportion of voting
Name of parent shareholding of the powers of the parent
Registration place Business nature Registered capital
company parent company in company in the
the Company Company
Changyu Group Manufacturing
Yantai City 50,000,000 50.40% 50.40%
Company industry
From January to June 2016, there was no fluctuation in registered capital of the parent company and
its share of equity interest and share of voting rights.
Final controlling parties of the Company are jointly controlled by four parties including Yantai
Guofeng Investment Holding Co., Ltd., ILLVA Saronno Holding SpA, International Finance
Corporation and Yantai Yuhua Investment & Development Co., Ltd.
11.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 9.
11.3 Particulars of other related parties
Name of other related parties Relationship between other related parties and the Company
Yantai Changyu Wine Culture Museum Co., Ltd. (“Wine Culture
A company controlled by the same parent company
Museum”)
Yantai Changyu Window of International Wine City Co. Ltd.
A company controlled by the same parent company
(“Window of Wine City”)
Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) A company controlled by the same parent company
Yantai Zhongya Medical Health Wine Co., Ltd. (“Zhongya
A company controlled by the same parent company
Medical”)
11.4 Related transactions
11.4.1 Related transactions of purchasing and selling goods and providing and receiving
services
List of purchasing goods/receiving services
Unit: Yuan
Amount incurred in this
Related parties Related transactions Amount incurred in prior period
period
God Horse Packing Purchasing goods 71,912,485 82,426,894
Zhongya Medical Purchasing goods 5,550,205 2,471,868
Wine Culture Museum Purchasing goods 4,636,495 3,487,207
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Amount incurred in this
Related parties Related transactions Amount incurred in prior period
period
Window of Wine City Purchasing goods 296,652 243,761
List of selling goods/providing services
Unit: Yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
Wine Culture Museum Selling goods 7,663,340 4,186,529
Window of Wine City Selling goods 5,002,597 3,712,629
Zhongya Medical Selling goods 2,057,616 749,724
God Horse Packing Selling goods 772,037 27,988
The price of transactions between this Group and the related parties are based on the negotiated
price.
From January to June 2016, the goods purchased from the related parties by the Group accounted
for 8.8% of the total purchases of the Group.
From January to June 2016, the goods sold by the Group to the related parties were lower than 1%
of the total sales of the Group.
11.4.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
11.4.3 Leasing with related parties
The Company as a leasee:
Unit: Yuan
Name of the lessor Type of leased assets Rent recognized in this period Rent recognized in prior period
Changyu Group Company Warehouse and office building 2,929,000 2,929,000
Pursuant to a lease contract dated January 1, 2012 signed between the Company and Changyu
Group Company, starting from January 1, 2012, the Company may rent properties for operation
purposes at a basic annual rental of RMB 5,858,000 Yuan, and the expired date is December 31,
2016. From January to June 2016, the rental expenses payable by this Group to Changyu Group
Company amounted to RMB 2,929,000 Yuan.
11.4.4 Guarantee with related parties
Nil
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11.4.5 Inter-bank borrowing and lending of related parties
Nil
11.4.6 Asset transfer and debt recombination of related parties
Nil
11.4.7 Other related transactions
Item Note Amount incurred in this period Amount incurred in prior period
Trademark usage (a)
46,273,367 52,568,600
fee
Patent fee (b) 25,000 25,000
The price of transactions between this Group and the related parties is based on the negotiated price.
(a) Trademark royalty contract
Pursuant to a trademark royalty contract dated May 18, 1997 signed between the Company and
Changyu Group Company, starting from September 18, 1997, the Company may use certain
trademark of Changyu Group Company, which has been registered with the PRC Trademark Office.
An annual royalty fee at 2% of the Company’s annual specific sales is payable to Changyu Group
Company. The contract is effective until the expiry of the registration of the trademark. From
January to June 2016, the patent fees paid to related parties by this Group accounted for 100% of
the patent fees in this Group.
(b) Patent implementation license contract
Pursuant to a patent implementation license contract dated May 18, 1997 signed between the
Company and Changyu Group Company, starting from September 18, 1997, the Company may use
the patented technologies of Changyu Group Company. The annual patent usage fee payable by the
Company to Changyu Group Company was RMB 50,000 Yuan. The contract was expired on
December 20, 2005. The Company renewed the contract on August 20, 2006 for 10 years. The
annual patent usage fee payable by the Company to Changyu Group Company is RMB 50,000 Yuan
as before. From January to June 2016, the patent usage fee payable by the Company to Changyu
Group Company amounted to RMB 25,000 Yuan. From January to June 2016, patent fees paid to
related parties accounted for 100% of the patent fees in this Group.
11.5 Accounts receivable and payable of the related parties
11.5.1 Accounts receivable
Unit: Yuan
Ending balance Beginning balance
Item Related parties
Book Bad debt Book balance Bad debt
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balance provision provision
Accounts receivable Zhongya Medical 2,240,282
Accounts receivable God Horse Packing 169,300
Accounts receivable Window of Wine City 7,812
Accounts receivable Wine Culture Museum 15,256
11.5.2 Accounts payable
Unit: Yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 28,522,179 53,735,915
Accounts payable Zhongya Medical 7,249,803 7,272,656
Accounts payable Wine Culture Museum 1,928,504
Accounts payable Window of Wine City 250,353 145,861
Other accounts payable Changyu Group Company 46,095,769 86,001,287
12. Commitment and contingency
12.1 Significant commitment
Unit: Yuan
Item Ending balance Beginning balance
Capital commitment 990,490,000 1,580,280,000
12.2 Contingency
By the balance sheet date, the Group and the Company didn’t have any undisclosed contingency to
be disclosed.
13. Matters after balance sheet
13.1 Important non-adjusting events
Nil
13.2 Profit distribution
Unit: Yuan
Profits or dividends to be distributed 342,732,000
Allocated profits or dividends approved to declare upon
342,732,000
discussion
According to the decision of the Shareholders’ Meeting dated May 26, 2016, based on the issued share
capital of 685,464,000 shares in 2015, the Company allocated RMB 5 Yuan in cash (including tax) for every
10 shares to all shareholders with the total cash dividends of RMB 342,732,000 Yuan. Such cash dividends
were issued on July 7, 2016 and July 11, 2016 respectively.
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14. Other important matters
Nil
15. Notes on major items in financial statements of the parent company
15.1 Accounts receivable
15.1.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type
Accrued Book value Accrued Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts receivable of
significant single amount
and single accrued bad debt
provision
Accounts receivable accrued
bad debt provision by credit
risk features
Accounts receivable of
insignificant single amount
643,457 100 % 643,457 2,392,870 100 % 2,392,870
and single accrued bad debt
provision
Total 643,457 100 % 643,457 2,392,870 100 % 2,392,870
15.1.2 Bad debt provision accrued, received or transferred back in this period
The bad debt provision accrued in this period was RMB 0 Yuan; and that received or transferred
back in this period was RMB 0 Yuan.
15.1.3 Accounts receivable actually canceled after verification in this period
Nil
15.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage in total
Relationship with the
Unit Amount Age accounts receivable
Company
(%)
Yantai Changyu Wine Culture Museum Other related party of 643,457 Within 1 year 100%
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Co., Ltd. the Company
Total 643,457 100%
15.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
15.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
15.2 Other accounts receivable
15.2.1 Other accounts receivable disclosed by type
Ending balance Beginning balance
Book balance Bad debt provision Book value Book balance Bad debt provision Book value
Type
Accrued Accrued
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other accounts
receivable of
significant single
5,989,049,441 99.8% 7,199,521 0.1% 5,981,849,920 5,727,534,401 99.8% 7,199,521 0.1% 5,720,334,880
amount and single
accrued bad debt
provision
Other accounts
receivable accrued bad
debt provision by
credit risk features
Other accounts
receivable of
insignificant single
14,920,904 0.2% 14,920,904 14,121,249 0.2% 14,121,249
amount and single
accrued bad debt
provision
Total 6,003,970,345 100.0% 7,199,521 0.1% 5,996,770,824 5,741,655,650 100 % 7,199,521 0.1% 5,734,456,129
Other accounts receivable of significant single amount and single accrued bad debt provision at the
end of period:
Unit: Yuan
Ending balance
Other accounts receivable (by
Other accounts Bad debt Accrued
unit) Reason for accrual
receivable provision proportion
This company is in bankruptcy
Tiantong Securities Co., Ltd. 7,199,521 7,199,521 100%
liquidation
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Total 7,199,521 7,199,521 -- --
15.2.2 Bad debt provision accrued, received or transferred back in this period
The bad debt provision accrued in this period was RMB 0 Yuan; and that received or transferred
back in this period was RMB 0 Yuan.
15.2.3 Other accounts receivable classified by nature
Unit: Yuan
Nature of fund Ending book balance Beginning book balance
Accounts receivable of subsidiaries 5,986,392,825 5,732,654,756
Excise drawback
Cash pledge and cash deposit receivable 645,374 103,834
Investment fund receivable 7,199,521 7,199,521
Other 9,732,625 1,697,539
Total 6,003,970,345 5,741,655,650
15.2.4 Other accounts receivable collected by the borrower of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage in the
Ending balance
total ending balance
Unit Nature of fund Ending balance Age of bad debt
of other accounts
provision
receivable
Internal
R&D Company incomings and 2,195,328,502 Within 3 year 36.6%
outgoings
Internal
Chang’an Chateau incomings and 772,647,858 Within 2 year 12.9%
outgoings
Internal
Sales Company incomings and 662,301,514 Within 1 year 11.0%
outgoings
Internal
Shihezi Chateau incomings and 593,165,921 Within 2 year 9.9%
outgoings
Internal
Beijing Chateau incomings and 489,529,200 Within 2 year 8.2%
outgoings
Total -- 4,712,972,995 -- 78.5%
15.2.5 Accounts receivable related to government allowance
Nil
15.2.6 Other accounts receivable derecognized due to transfer of financial assets
Nil
15.2.7 Other accounts receivable transferred and included in assets and liabilities
Nil
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15.3 Long-term equity investment
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment in subsidiaries 1,423,725,152 1,423,725,152 1,423,725,152 1,423,725,152
Investment in associated
enterprises and joint
ventures
Total 1,423,725,152 1,423,725,152 1,423,725,152 1,423,725,152
15.3.1 Investment in subsidiaries
Unit: Yuan
Provision for Ending balance of
Beginning Increase in this Decrease in this
Invested unit Ending balance impairment in this impairment
balance period period
period provision
Xinjiang Tianzhu
60,000,000 60,000,000
(a)
Kylin Packaging 23,176,063 23,176,063
Changyu Chateau
28,968,100 28,968,100
(a)
Pioneer
3,500,000 3,500,000
International (c)
Ningxia Growing 1,000,000 1,000,000
National Wine 2,000,000 2,000,000
Icewine Chateau
30,440,500 30,440,500
(a)
Beijing Chateau (a) 77,000,000 77,000,000
Sales Company 7,200,000 7,200,000
Langfang Sales (c) 100,000 100,000
Langfang Castel
19,835,730 19,835,730
(a)
Wine Sales 4,500,000 4,500,000
Shanghai
300,000 300,000
Marketing (c)
Beijing Marketing 850,000 850,000
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Provision for Ending balance of
Beginning Increase in this Decrease in this
Invested unit Ending balance impairment in this impairment
balance period period
period provision
Jingyang Sales (c) 100,000 100,000
Jingyang Wine (c) 900,000 900,000
Ningxia Wine 1,000,000 1,000,000
Ningxia Chateau 2,000,000 2,000,000
Tinlot Chateau (c) 80,000,000 80,000,000
Shihezi Chateau 150,000,000 150,000,000
Chang’an Chateau 20,000,000 20,000,000
R&D Company 500,000,000 500,000,000
Huanren Wine 11,000,000 11,000,000
Francs Champs 209,706,634 209,706,634
Atrio Group 190,148,125 190,148,125
Total 1,423,725,152 1,423,725,152
15.4 Operating income and operating cost
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 648,652,597 495,598,413 681,772,322 541,216,825
Other business 6,646,403 5,714,186 7,280,907 7,169,011
Total 655,299,000 501,312,599 689,053,229 548,385,836
15.5 Investment income
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Income from long-term equity investment by cost method 683,891,453 46,770,286
Income from long-term equity investment by equity method
Investment income from disposal of long-term equity investment
Investment income of the financial assets measured at their fair
values and the variation of which is recorded into the current
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
profit and loss during the holding period
Investment income gained from disposal of the financial assets
measured at their fair values and the variation of which is
recorded into the current profit and loss
Investment income of held-to-maturity investment during the
holding period
Investment income of financial assets held for sale during the
holding period
Investment income gained from disposal of financial assets held
for sale
Gains generated from the remaining equity remeasured as per fair
value after the loss of control
Total 683,891,453 46,770,286
16. Supplementary materials
16.1 List of non-current profits/losses in this period
Unit: Yuan
Item Amount Remark
Profits/losses on disposal of non-current assets -15,485
Tax return, deduction and exemption approved beyond the
12,116,257
authority or without formal approval document
Government allowance included in the current profits/losses
(excluding those closely related to the enterprise business and
6,029,617
enjoyed in accordance with the unified standard quota or ration of
the state)
Payment for use of funds by non-financial enterprises included in
the current profits/losses
Income obtained when the investment cost obtained by the
enterprise from subsidiaries, joint-run business and joint venture is
less than the fair value of the net identifiable assets obtained from
the invested units when the investment is made
Profits/losses on exchange of non-monetary assets
Profits/losses on entrusting other people to make investment or
manage assets
Asset impairment provision accrued due to force majeure such as
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Item Amount Remark
natural disaster
Profits/losses on debt restructuring
Enterprise reorganization expenses such as staffing expenditure
and integration expenses, etc.
Profits/losses on those beyond the fair value generated from
transactions with unfair transaction price
Current net profits/losses on subsidiaries acquired from a business
combination under common control from the beginning to the
consolidation date
Profits/losses on contingencies irrelated to the normal business of
the Company
Profits/losses on changes of fair value of financial assets and
liabilities held for trading, and investment income from disposal of
financial assets and liabilities held for trading and financial assets
held for sale, excluding effective hedging operations relevant to
the normal business of the Company
Returns of provision for impairment of accounts receivable with
single impairment test
Profits/losses on external entrusted loans
Profits/losses on fair value changes of investment real estate with
fair value mode for follow-up measurement
Influence of the one-time adjustment of the current profits/losses
in accordance with tax and accounting laws and regulations on the
current profits/losses
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above
3,459,361
items
Other profits/losses conforming to the definition of non-current
profits/losses
Minus: Influenced amount of income tax 5,046,224
Influenced amount of minority shareholders’ equity
Total 16,543,526 --
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
16.2 Return on net assets and earnings per share
Earnings per share
Weighted average return on net
Profit incurred in this period Basic EPS
assets Diluted EPS (Yuan/Share)
(Yuan/Share)
Net profit attributable to common shareholders
8.78% 1.01 1.01
of the Company
Net profit attributable to common shareholders
of the Company deducting non-incidental 8.58% 0.99 0.99
profits/losses
16.3 Accounting data difference under domestic and foreign accounting standard
16.3.1 Net profits & net assets difference disclosed in the financial report according to the
international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits Net assets
Amount incurred in Amount incurred in prior
Ending balance Beginning balance
this period period
In accordance with the Chinese
695,021,847 746,060,248 8,265,370,769 7,564,099,003
accounting standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 695,021,847 746,060,248 8,265,370,769 7,564,099,003
standard
129
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
X、Catalogue of Documents for Future Reference
1、2016 Semi-annual reports signed by the president;
2、Financial reports signed and affixed the seal by the president, financial administrator in charge of
accounting and chief of accounting department;
3、The Prospectus and Public Offering Announcement for Stock B in 1997, the Prospectus and The
Shares’ Change & Public Offering Announcement for Stock A in 2000.
4、 The originals of all documents and announcements that the Company made public during the
report period in the newspapers designated by China Securities Regulatory Commission.
Yantai Changyu Pioneer Wine Company Limited
Board of Directors
August 29th, 2016
130
