English Translation for Reference Only
ANHUI GUJING DISTILLERY COMPANY LIMITED
Semi-annual Report 2012
I. Important Notes
The Board of Directors, Supervisory Committee and directors, supervisors, and senior managers of Anhui Gujing
Distillery Company Limited (hereinafter referred to as the Company) ensure that there is neither untrue
presentation, seriously misleading statements, nor omission of material facts contained in the information herein
and shall severally and jointly bear responsibility for the authenticity, accuracy and completeness of the
information contained in this report.
All directors attend the Board meeting for reviewing the interim report.
Mr. Yu Lin, the principal of the Company, Mr. Ye Changqing, the principal in charge of accounting, and Ms. Xia
Xueyun, the principal of the accounting organ (chief accountant), hereby declare that: We guarantee the
authenticity and completeness of the financial statements in the semi-annual report.
Explanation
Refer
Item Content for explanation
to
Refer
Company/the Company, Gujing Anhui Gujing Distillery Company Limited
to
Refer
Gujing Group Anhui Gujing Group Co., Ltd.
to
Refer State-owned Assets Supervision and Administration Commission
SASAC
to of Bozhou Municipal
II. Company Profile
(I) Basic information
A-share code 000596 B-share code 200596
A-share abbreviation Gujing Distillery B-share abbreviation Gujing Distillery B
Stock exchange listed
Shenzhen Stock Exchange
with
Legal Chinese name of
安徽古井贡酒股份有限公司
the Company
Abbr. of the legal Chinese
古井贡酒
name of the Company
Legal English name of the
ANHUI GUJING DISTILLERY COMPANY LIMITED
Company
Abbr. of the legal English
GUJING
name of the Company
Legal representative of
Yu Lin
the Company
Registered address Gujing, Bozhou, Anhui
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Postal code for the
236820
registered address
Office address Gujing, Bozhou, Anhui
Postal code for the office
236820
address
Internet website of the
http://www.gujing.com
Company
Email gujing@mail.ahbbptt.com.cn
(II) For contact
Secretary to the Board of Directors Securities Affairs Representative
Name Ye Changqing Ma Junwei
Contact address Gujing, Bozhou, Anhui Gujing, Bozhou, Anhui
Tel. (0558)5712231 (0558)5710057
Fax (0558)5317706 (0558)5317706
Email ycq@gujing.com.cn zqb@gujing.com.cn
(III) About information disclosure and where the interim report is placed
Newspapers designated by the
Securities Times, Shanghai Securities News and Ta Kung Pao
Company for information disclosure
Internet website designated by CSRC
http://www.cninfo.com.cn
for disclosing the semi-annual report
Where the semi-annual report is
Office of Secretary of BOD of the Company
placed
III. Financial and Business Highlights
(I) Major accounting data and indexes
Any retrospective adjustment in previous financial statements?
√Yes □No □Inapplicable
Major accounting data
Reporting period
Major accounting data Same period of last year Increase/decrease (%)
(Jan.-Jun.)
Gross operating revenues (RMB
2,227,809,202.69 1,583,297,669.82 40.71%
Yuan)
Operating profit (RMB Yuan) 548,414,605.63 388,708,798.74 41.09%
Total profit (RMB Yuan) 555,798,666.62 394,339,400.11 40.94%
Net profit attributable to shareholders
413,724,138.05 287,947,478.86 43.68%
of the Company (RMB Yuan)
Net profit attributable to shareholders
of the Company after deducting 408,186,092.30 283,724,527.83 43.87%
non-recurring gains and losses (RMB
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English Translation for Reference Only
Yuan)
Net cash flow from operating activities
147,934,126.72 195,085,921.58 -24.17%
(RMB Yuan)
As at the end of this
As at the end of last year Increase/decrease (%)
reporting period
Total assets (RMB Yuan) 4,261,928,852.58 4,241,819,550.30 0.47%
Owners’ equity attributable to
shareholders of the Company (RMB 3,061,529,422.50 2,761,115,284.45 10.88%
Yuan)
Total shares (share) 503,600,000.00 251,800,000.00 100%
Major financial indexes
Reporting period
Major financial indexes Same period of last year Increase/decrease (%)
(Jan.-Jun.)
Basic EPS (RMB Yuan/share) 0.82 1.23 -33.33%
Diluted EPS (RMB Yuan/share) 0.82 1.23 -33.33%
Basic EPS after deducting
non-recurring gains and losses (RMB 0.81 1.21 -28.32%
Yuan/share)
Fully diluted ROE (%) 14.98% 22.94% -7.96%
Weighted average ROE (%) 14.21% 24.99% -10.78%
Fully diluted ROE after deducting
13.51% 10.28% 3.09%
non-recurring gains and losses (%)
Weighted average ROE after deducting
14.02% 24.62% -10.56%
non-recurring gains and losses (%)
Net cash flow per share from operating
0.29 0.77 -62.34%
activities (RMB Yuan/share)
As at the end of this
As at the end of last year Increase/decrease (%)
reporting period
Net assets per share attributable to
shareholders of the Company (RMB 6.08 10.97 -44.58%
Yuan/share)
Liability/asset ratio (%) 28.17% 39.21% -11.04%
Notes to major accounting data and financial indexes before the end of this reporting period (please write an
adjustment note if there’s any retrospective adjustment)
(II) Accounting data differences under the domestic and overseas accounting standards
1. Net profit and net asset differences between financial reports disclosed according to the international and
Chinese accounting standards respectively
□Applicable √Inapplicable
2. Net profit and net asset differences between financial reports disclosed according to the overseas and
Chinese accounting standards respectively
□Applicable √Inapplicable
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3. Specific items involving significant difference
Involved provisions of
Items involving significant international and/or
Amount (RMB Yuan) Reason for the difference
difference overseas accounting
standards
4. Notes to accounting data differences under the domestic and overseas accounting standards
(III) Items of non-recurring gains and losses
√Applicable □Inapplicable
Jan.-Jun. 2012
Items Notes
(RMB Yuan)
Gains and losses on disposal of non-current assets -39,042.62
Tax rebate, reduction or exemption due to
un-authorized approval or the lack of formal approval 0.00
documents
Government grants recognized in the current year,
except for those acquired in the ordinary course of
200,000.00
business or granted at certain quotas or amounts
according to the country’s unified standards
Capital occupation fees received from non-financial
enterprises that are included in current gains and 0.00
losses
Gains generated when the investment costs of the
Company’s acquiring subsidiaries, associates and joint
ventures are less than the fair value of identifiable net 0.00
assets in the investees attributable to the Company in
the acquisition of the investments
Exchange gains and losses of non-monetary assets 0.00
Gains and losses through entrusting others to invest or
0.00
manage assets
Various asset impairment provisions due to acts of
0.00
God such as natural disasters
Gains and losses on debt restructuring 0.00
Enterprise reorganization expenses, such as expenses
0.00
on employee settlement and integration
Gains and losses on the parts exceeding the fair value
0.00
when prices of transactions become unfair
Net current gains and losses from the period-begin to
the combination date of subsidiaries due to business 0.00
combinations under the same control
Gains and losses on contingent matters which are
0.00
irrelevant to the normal operation of the Company
Gains and losses on fair value changes of
transactional financial assets and liabilities, and 0.00
investment gains on disposal of transactional financial
assets and liabilities and available-for-sale financial
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assets, except for the effective hedging business
related to the Company’s normal operation
Reversal of impairment provisions for accounts
receivable which are separately tested for impairment 0.00
signs
Gains and losses on entrustment loans from external
0.00
parties
Gains and losses on fair value changes of investing
properties for which the fair value method is adopted 0.00
for subsequent measurement
Current gain and loss effect due to a just-for-once
adjustment to current gains and losses according to
0.00
requirements of taxation and accounting laws and
regulations
Custodian fee income from entrusted operations with
0.00
the Company
Other non-operating incomes and expenses besides
7,223,103.61
the items above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects
Income tax effects 1,846,015.25
Total 5,538,045.74 --
Explanation given by the Company to “other gain and loss items that meet the definition of non-recurring gains
and losses” and when it recognizes a non-recurring gain and loss item as a recurring one according to the nature
and features of its ordinary business:
Item Involving amount (Yuan) Notes
IV. Changes in Share Capital and Particulars about Shareholders
(I) Changes in share capital
1. Statement of changes of shares
√Applicable □Inapplicable
Before the change Increase/decrease (+, -) After the change
Capitalizat
Issuance ion of
Proportion Bonus Proportio
Number of new public Others Subtotal Number
(%) shares n (%)
shares reserve
fund
I. Shares subject to trading 16,800,00 16,800,00 16,800,90 33,600,90
6.67% 900.00 6.67%
moratorium 0.00 0.00 0.00 0.00
1. State-owned shares
2. State-owned legal
person shares
3. Other domestic shares 16,800,00 6.67% 16,800,00 33,600,00 6.67%
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0.00 0.00 0.00
Including: Shares held by
domestic legal persons
Shares held by
domestic individuals
4. Shares held by overseas
shareholders
Including: Shares held by
overseas legal persons
Shares held by
overseas individuals
5. Shares held by senior
0.00 0% 900.00 900.00 0%
management staff
II. Shares not subject to 235,000,0 235,000,0 234,999,1 469,999,1
93.33% -900.00 93.33%
trading moratorium 00.00 00.00 00.00 00.00
1. Ordinary shares 175,000,0 175,000,0 175,000,0 349,999,1
69.5% -900.00 69.5%
denominated in RMB 00.00 00.00 00.00 00.00
2. Domestically listed 60,000,00 60,000,00 60,000,00 120,000,0
23.83% 23.83%
foreign shares 0.00 0.00 0.00 00.00
3. Overseas listed foreign
shares
4. Others
251,800,0 251,800,0 503,600,0
III. Total shares 100% 100%
00.00 00.00 00.00
Approval of share changes (if applicable)
On 19 Apr. 2012, on the Shareholders’ General Meeting 2011, the Company approved Equity Distribution Plan. According to the
plan Company will conducted “each 10 shares with 10 shares bonus” by capital reserves to all shareholders. By then, the total shares
of the Company increase to 503,600,000 shares.
Transfers in share changes
Influence of share changes on the latest financial indexes such as EPS and net assets per share (if any)
Other contents that the Company thinks necessary or is asked by securities regulators to be disclosed
2. Changes of shares subject to trading moratorium
√Applicable □Inapplicable
Number of
Number of Number of Number of
shares subject Date of
shares subject shares released shares subject
Name of to trading releasing
to trading from trading to trading Reason
shareholder moratorium trading
moratorium at moratorium in moratorium at
increased in moratorium
year-begin current year year-end
current year
Puning
Xinhong Private offering,
Industrial 7,500,000.00 0.00 7,500,000.00 15,000,000.00 equity 3 Aug. 2012
Investment distribution
Co.,Ltd
Shanghai
Kaisiyi Private offering,
Investment 2,000,000.00 0.00 2,000,000.00 4,000,000.00 equity 3 Aug. 2012
Management distribution
Partnership
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(LLP)
Xi’an
Changxian
Private offering,
Changxian
2,000,000.00 0.00 2,000,000.00 4,000,000.00 equity 3 Aug. 2012
Investment
distribution
Management
LLP Enterprise
Shanghai
Greenwoods Private offering,
Jingtong Equity 2,000,000.00 0.00 2,000,000.00 4,000,000.00 equity 3 Aug. 2012
Investment distribution
Center
Xi’an
Changguo Private offering,
Investment 2,000,000.00 0.00 2,000,000.00 4,000,000.00 equity 3 Aug. 2012
Management distribution
LLP Enterprise
Private offering,
Goldstate
1,300,000.00 0.00 1,300,000.00 2,600,000.00 equity 3 Aug. 2012
Securities
distribution
Shares held by
senior
Zhai Liangdong 0.00 0.00 900.00 900.00 management,
equity
distribution
Total 16,800,000.00 0.00 16,800,900.00 33,600,900.00 -- --
(II) Issuance and listing of securities
1. Securities issues in the previous three years
√Applicable □Inapplicable
Name of security
Issuing price Number of Number approved Ending date of
and its derivative Issuing date Listing date
(yuan/share) issuance for listing trade
security
Stock
Private offering
25 Jul. 2011 75.00 16,800,000.00 3 Aug. 2011 16,800,000.00
of A shares
Convertible company bonds, bonds with attached warrant, company bonds, etc.
Warrant
Notes of securities issues in the previous three years (make notes of bonds that with different interest in useful life).
2. Changes of the Company’s share number and structure, as well as the corresponding changes in its
asset-liability structure
□Applicable √Inapplicable
3. Existing employee shares
□Applicable √Inapplicable
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(III) Shareholders and actual controller
1. Total number of shareholders at the end of the reporting period
The Company had 22,802.00 shareholders at the end of reporting period.
2. Shareholding of the top ten shareholders
Particulars about shares held by the top ten shareholders
Number of Pledged or frozen shares
shares held
Name of shareholder (full Nature of Shareholding Total shares held
subject to Number of
name) shareholder percentage (%) at the period-end Status of shares
trading shares
moratorium
Anhui Gujing Group State-owned
53.89% 271,404,022.00 114,000,000.00
Company Limited Corporation
Domestic
Puning Xinhong Industrial
non-state-owned 2.98% 15,000,000.00 15,000,000.00
Investment Co., Ltd.
Corporation
Foreign
KGI ASIA LIMITED 2.14% 10,776,730.00
corporation
GUOTAI JUNAN
Foreign
SECURITIES(HONGKO 1.62% 8,136,472.00
corporation
NG) LIMITED
UBS (LUXEMBOURG) Foreign
1.46% 7,373,834.00
S.A. corporation
China Merchants Foreign
1.34% 6,726,117.00
Securities (HK) Co., Ltd corporation
TRIVEST CHINA Foreign
1.27% 6,379,720.00
FOCUS MASTER FUND corporation
China Construction Bank- Domestic
ABN AMRO TEDA non-state-owned 1.17% 5,914,263.00
Efficiency Fund Corporation
Industrial and
Domestic
Commercial Bank of
non-state-owned 1.07% 5,369,626.00
China-Galaxy Yintai
Corporation
Financing Fund
Agricultural Bank of
Domestic
China-Soochow Value
non-state-owned 0.95% 4,805,424.00
Growth Double Power
Corporation
Fund
Notes to particulars about shareholders
Particulars about shares held by the top ten shareholders holding shares not subject to trading moratorium
√Applicable □Inapplicable
Number of shares held Type and number of shares
not subject to trading
Name of shareholder
moratorium at the Type Number
period-end
Anhui Gujing Group Company Limited 271,404,022.00 A-share 271,404,022.00
KGI ASIA LIMITED 10,776,730.00 B-share 10,776,730.00
GUOTAI JUNAN SECURITIES(HONGKONG) 8,136,472.00 B-share 8,136,472.00
LIMITED
UBS (LUXEMBOURG) S.A. 7,373,834.00 B-share 7,373,834.00
China Merchants Securities (HK) Co., Ltd 6,726,117.00 B-share 6,726,117.00
TRIVEST CHINA FOCUS MASTER FUND 6,379,720.00 B-share 6,379,720.00
China Construction Bank- ABN AMRO TEDA 5,914,263.00 A-share 5,914,263.00
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Industrial and Commercial Bank of China-Galaxy 5,369,626.00 B-share 5,369,626.00
Yintai Financing Fund
Agricultural Bank of China-Soochow Value 4,805,424.00 A-share 4,805,424.00
CHINA MASTER Fund
GOLDENGrowth Double PowerFUND 4,078,234.00 B-share 4,078,234.00
Explanation on associated relationship among the top ten shareholders or/and acting-in-concert
Among the shareholders above, no affiliated relationship exists between the Company’s controlling shareholder—Anhui Gujing
Group Company Limited—and other shareholders, nor they are parties acting in concert as defined in the Administrative Measures
on Information Disclosure of Changes in Shareholding of Listed Companies. As for other shareholders, the Company does not know
whether they are related parties or whether they belong to parties acting in concert as defined in the Administrative Measures on
Information Disclosure of Changes in Shareholding of Listed Companies.
3. Controlling shareholder and actual controller
(1) Change of the controlling shareholder and actual controller
□Applicable √Inapplicable
(2) Particulars about the controlling shareholder and actual controller
Is there a new actual controller?
□Yes √No □Applicable
Name of the actual controller Anhui Gujing Group Company Limited
Type of the actual controller SASAC
Notes:
Anhui Gujing Group Company Limited, shareholder with over 5% shares of the Company, held 271,404,022 shares as at the end of
the reporting period. All shares held by Gujing Group were shares not subject to trading moratorium. On 16 Mar. 2009, 57,000,000
shares held by Gujing Group were used for loan business. The Company conducted Equity Distribution for 2011 in May 2012.
Subsequent to the equity distribution, pledged shares and trusted shares were of 114,000,000 shares. Besides, there was no
particular about pledged or trusted shares in the Company.
(3) Property right relationship and control relationship between the Company and actual controller
The People’s Government of Bozhou
60％
Anhui Gujing Group Company Limited
53.89％
Anhui Gujing Distillery Co., Ltd.
(4) The actual controller controls the Company via trust or other ways of asset management
□Applicable √Inapplicable
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4. Other corporate shareholders with a shareholding over 10%
□Applicable √Inapplicable
(IV) Convertible corporate bonds
□Applicable √Inapplicable
V. Directors, Supervisors and Senior Management
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(I) Shareholding changes of directors, supervisors and senior management
Receives
Number of Number of
Of which: Number of payment
Number of shares shares Number of
Starting date Ending date number of stock options Reason for from
Name Office title Sex Age shares held at increased in decreased in shares held at
of office of office restricted held at change shareholder
period-begin reporting reporting period-end
shares held period-end units or other
period period
related units?
Zhai Assistant to Equity
Male 42.00 12 Jun. 2012 12 Jun. 2015 600.00 600.00 1,200.00 900.00 No
Liangdong GM distribution
Total -- -- -- -- -- -- --
Equity incentives granted to directors, supervisors and senior management during the reporting period
□Applicable √Inapplicable
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(II) Post-holding particulars
Post-holding in shareholders units
√Applicable □Inapplicable
Name of the
Position in
person holding Receives payment
the Beginning date Ending date of
any post in any Name of the shareholder unit from the shareholder
shareholder of office term office term
shareholder unit?
unit
unit
Chairman of
Yu Lin Gujing Group 15 Apr. 2011 15 Apr. 2014 Yes
the Board
Secretary of
Wang Feng Gujing Group the Discipline 15 Apr. 2011 15 Apr. 2014 Yes
Committee
Vice
Zhou Qingwu Gujing Group Secretary of 15 Apr. 2011 15 Apr. 2014 No
the Party
Vice
Yang Xiaofan Gujing Group 15 Apr. 2011 15 Apr. 2014 Yes
president
Chief of the
Finance
Lu Duicang Gujing Group 15 Apr. 2011 15 Apr. 2014 Yes
Management
Center
Notes to
post-holding in Though the above personnel held post in other shareholding units, they didn’t gain any punishment from CSRC or
other other relevant authorities or reprimand from Shenzhen Stock Exchange. Their post-holding were in accordance
shareholding with requirements of relevant laws and regulations of Company Law, Securities Law, etc..
units
Information of post-holding in other units
□Applicable √Inapplicable
(III) Remuneration for directors, supervisors and senior management
Decision-making
procedure for the
The Remuneration & Appraisal Committee under the Board of Directors is in charge of drafting
remuneration of directors,
appraisal index of senior management and checking accomplishment of annual index.
supervisors and senior
management
Basis for determining the Remuneration of directors, supervisors and senior management is calculated by appraisal index drafted
remuneration of directors, in year-begin and weight. Financial index is on base of Auditor’s Report issued by certified public
supervisors and senior accountant, and comprehensive appraisal index is appraised and discussed by the Remuneration &
management Appraisal Committee under the Board of Directors.
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Actual payment of the
remuneration of directors, Payment of the remuneration of directors, supervisors and senior management is with certain amount in
supervisors and senior advance monthly and distributed annually according to check.
management
(IV) Change of directors, supervisors and senior management
Name Position Way of change Date of change Reason for change
With the requirement of business development of the
Zong Assistant General Company, the Company approved Proposal on Newly
Newly engaged 12 Jun. 2012
Zhaoji Manager Engagement on the Special Session of the 6th Board of
Directors convening on 12 Jun..
With the requirement of business development of the
Zhai Assistant General Company, the Company approved Proposal on Newly
Newly engaged 12 Jun. 2012
Liangdong Manager Engagement on the Special Session of the 6th Board of
Directors convening on 12 Jun..
With the requirement of business development of the
Assistant General Company, the Company approved Proposal on Newly
Fang Ji Newly engaged 12 Jun. 2012
Manager Engagement on the Special Session of the 6th Board of
Directors convening on 12 Jun..
With the requirement of business development of the
Zhang Assistant General Company, the Company approved Proposal on Newly
Newly engaged 12 Jun. 2012
Lihong Manager Engagement on the Special Session of the 6th Board of
Directors convening on 12 Jun..
(V) Employees
Number of on-job employees 5,483.00
Number of retired employees for whom the Company shall bear
512.00
expenses
Function structure
Type of function Number of personnel
Production 3,929.00
Sale 577.00
Technical 222.00
Financial 84.00
Administration 89.00
Level of education
Level of education Number of personnel
High school and below 4,317.00
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Junior college 609.00
University 539.00
Master degree 18.00
Doctor degree 0.00
Notes about particulars of employee:
There were a total of 512 retirees in the Company. All of them were enrolled in social management and the Company shoulder part
of expense in accordance with the state policy.
VI. Report of the Board of Directors
(I)Discussion and analysis by the management
In the first half of 2012, the Company kept to the leap-frog development strategy. Through implementing lean management,
adjusting the organizational structure, pushing forward internal control improvement step by step, continuously upgrading the
management mode and allocating various resources properly, the Company steadily improved its management and overall
competitiveness, ensured the rapid growth of its main business of distilled spirit, enhanced its brand influence and improved its
profitability. In all, the Company has excellent prospects.
For the first half of 2012, the Company achieved an operating income of RMB 2,227,809,200, up by 41% year on year; a distilled
spirit income of RMB2,153,757,100, representing a year-on-year growth of 42.09% a total profit of RMB 555,798,700, up by 41%
year on year; and a net profit reaching RMB 413,724,100, up by 44% year on year. As such, the Company fully accomplished the
product and operation objectives set at the beginning of the year, with its production and operation condition constantly improving.
Is the Company’s actual business performance 20% lower or higher than any earning forecast or business plan for the reporting
period which has been publicly disclosed earlier?
□ Yes √ No □ Inapplicable
Analysis to the business and performances of the Company’s main subsidiaries and stock-participating companies:
Naught
All risk factors that might have adverse impact on the Company’s effort to realize its future development strategy and business goals:
A. Currently, competition among distilled spirit enterprises is extremely fierce. Enterprises keep upgrading their marketing modes for
rapid growth. In particular, competition in the province becomes fiercer.
B. With its product and brand value continuously, how to release resources more precisely, increase the output-input efficiency and
shift the driving force of sales from resources to brand will become a direct challenge to the Company in its future rapid
development.
1. Main business lines and their operating results
(1)Main business lines classified by industries and products
Unit: RMB Yuan
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Increase/decrease Increase/decrease
Increase/decrease
of operating of gross profit
of operating cost
Industries/product Operating Gross profit rate revenue rate compared
Operating cost compared with
s revenue (%) compared with with the same
the same period
the same period period last year
last year (%)
last year (%) (%)
Industries
Distilled spirit 2,153,757,133.65 530,668,071.69 75.36% 42.09% 47.83% -0.96%
Hotel services 35,947,124.71 22,448,505.99 37.55% 11.48% 14.13% -1.45%
Others 8,965,332.76 6,633,722.01 26.01% -44.48% -42.79% -2.19%
Products
High grade liquor 1,254,438,442.99 227,288,814.90 81.88% 32.1% 23.37% 1.28%
Mid-range wine 849,549,642.90 276,677,853.96 67.43% 54.5% 66.57% -2.36%
Cheap wine 49,769,047.76 26,701,402.83 46.35% 204.7% 209.53% -0.84%
others 44,912,457.47 29,082,228.00 35.25% -7.2% -6.99% -0.15%
Explanation to the main business performances classified by industries and products:
Naught
Explanation to the reasons for any significant year-on-year change of the gross profit rate:
Naught
(2)Main business lines classified by regions
Unit: RMB Yuan
Increase/decrease compared with the same
Region Operating revenue
period last year (%)
North China 319,507,955.35 6.71%
Central China 1,691,838,902.10 48.82%
South China 187,212,938.97 46.34%
International 109,794.70
Explanation to the main business performances classified by regions:
Naught
Explanation to the main business structure:
Naught
(3)Reasons for significant changes in main business and its structure
□Applicable √Inapplicable
(4)Reasons for significant changes in profitability of main business (gross profit rate) compared with that in
the last year
□Applicable √Inapplicable
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(5)Analysis on reasons of significant changes in profit breakdown compared with the last year
□Applicable √Inapplicable
(6)Business nature, main products/services, net profit and other particulars about subsidiaries which made
a contribution over 10% to the Company’s net profit for the reporting period
□Applicable √Inapplicable
(7) Problems and difficulties encountered in operation
Naught
2. Internal control rules in relation to fair value measurement
□Applicable √Inapplicable
3. Foreign-currency financial assets and liabilities held
□Applicable √Inapplicable
(II)Investments
1. General utilization of the raised funds
√Applicable □Inapplicable
Unit: RMB Ten thousand
Total raised capital 122,749.95
Total raised capital input in the reporting period 21,727.85
Accumulative raised capital input 36,332.15
Total raised capital of which the use was changed in the
0
reporting period
Accumulative raised capital of which the use was
0
changed
Proportion of accumulative raised capital of which the
0
use was changed
General utilization of the raised funds
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2. Projects promised to be invested with raised funds
√Applicable □Inapplicable
Unit: RMB Ten thousand
Project Investment Date when the Material
Profit
Projects invested with raised capital changed or not Raised capital Investment Accumulative progress up to project reaches Reach the change in the
Input in the generated in
as promised and investments with (including input as after input up to the the period-end the expected expected profit project
reporting year the reporting
over-raised capital partially promised adjustment (1) period-end (2) (%)(3)＝ usable or not feasibility or
period
changed) (2)/(1) condition not
Projects invested with raised capital
as promised
Technological Transform on the
No 13,500 12,194.42 1,191.27 1,650.95 13.54% 31 Dec. 2012 0 No
Brewage of High-quality Base Wine
Construction of Base Wine
Blending & Filling Centre and No 68,600 65,921.06 9,169.52 11,378.44 17.26% 31 Dec. 2012 0 No
Ancillary Facilities
Construction of Marketing Network No 27,500 27,500 4,572.62 11,207.22 40.75% 31 Dec. 2012 0 No
Construction of Brand Promotion No 17,000 17,000 6,794.44 12,095.54 71.15% 31 Dec. 2012 0 No
Subtotal of promised investment
- 126,600 122,615.48 21,727.85 36,332.15 - - - -
projects
Investments of over-raised capital
Repaying bank loans (if any) - - - - -
Supplementing working capital (if
- - - - -
any)
Subtotal of investments with - - - - -
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English Translation for Reference Only
over-raised capital
Total - 126,600 122,615.48 21,727.85 36,332.15 - - - -
Reason for failing to reach
scheduled progress or projected
Naught
income (explain one project by one
project)
Explanation on significant changes
No significant change in the feasibility of the project
in feasibility of projects
Amount, usage and usage progress □Applicable √Inapplicable
of over-raised capital
□Applicable √Inapplicable
Change of the implementation
location of any raised funds □ Took place in the reporting period □ Took place in previous years
investment project
Adjustment of the implementation □Applicable √Inapplicable
method of any raised funds □ Took place in the reporting period □ Took place in previous years
investment project
√Applicable □Inapplicable
In accordance with the explanation of the Particulars on the Private Issuance of A-share of Anhui Gujing Distillery Co., Ltd. and the Listing Announcement,
“Before the raised proceeds being in place, the Company can use the self-raised proceeds to input preliminarily in accordance with the actual progress of raised
Advance input and exchange of any
proceeds investment projects; after the raised proceeds being in place, the Company can use the raised proceeds to replace the self-raised proceeds preliminarily
raised funds investment project
input”. And the Proposal on Using the Raised Proceeds to Replace the Self-raised Proceeds Preliminarily Input to the Raised Proceeds Investment Projects was
reviewed and approved at the 7th Session of the 6th Board of Directors, which agreed to use the raised proceeds to replace the self-raised proceeds of
RMB27,058,143.42 preliminarily input to the raised proceeds investment projects. The above funds replacement was completed on 6 Jan. 2012.
Idle raised capital for temporarily □Applicable √Inapplicable
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supplementing working capital
Outstanding raised funds in project □Applicable √Inapplicable
implementation and reasons
Usage and whereabouts of unused
Deposited in the special account for raised proceeds
raise capital
Problems found in the usage and
disclosure affairs of raised capital Naught
and other situations
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3. Change of projects invested with raised funds
□Applicable √Inapplicable
4. Significant projects invested with non-raised funds
□Applicable √Inapplicable
(III)Revision of the Board of Directors’ business plan for the second half of the year
□Applicable √Inapplicable
(IV)Business performance estimate for Jan.-Sept. 2012
Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period
from the beginning of the year to the end of the next reporting period compared with the same period of last year,
as well as the reasons
□Applicable √Inapplicable
(V)Explanation of the Board of Directors on “Non-standard Auditing Report” issued by the
CPA firm for the reporting period
□Applicable √Inapplicable
(VI)Explanation of the Board of Directors on changes and solutions of the issues involved in
the “Non-standard Auditing Report” issued by the CPA firm for last year
□Applicable √Inapplicable
(VII)State the discussion results of the Board of Directors on the reasons and influence of the
Company’s accounting policy and estimate alterations or significant accounting error
correction
□Applicable √Inapplicable
(VIII)Formulation and execution of the Company’s cash dividend policy
According to the Notice of CSRC on Further Implementing Matters Related to Cash Dividend Distribution by
Listed Companies, the Company revised the Articles of Association at the 10th Session of the 6th Board of
Directors as follows: in the Article 161 of Articles of Association for the Company, the Company’s
decision-making procedures and mechanism for profits distribution are as follows: 1. The Company’s profits
distribution policy and preplan shall be promulgated, reviewed and approved by the Board of Directors, and then
submitted to the Shareholders’ General Meeting for approval. The Company shall effectively protect the rights of
social shareholders to attend the Shareholders’ General Meeting, the Board of Directors, independent directors and
20
English Translation for Reference Only
qualified shareholders can collect their voting rights in the Shareholders’ General Meeting towards the
shareholders of the Company. 2. When reviewing the specified Cash Dividends Distribution Preplan, the Board of
Directors shall carefully research and demonstrate the time, conditions, minimum ratio, conditions of adjustment
and other decision-making procedures as well as other issues for the cash dividends distribution of the Company.
3. When deciding and forming the Profits Distribution Preplan, the Board of Directors shall detailed record the
advice of management team, key points in the speeches of present directors, opinion of independent directors,
voting result of board session, etc., and then form a written record to be properly kept as the files of the Company.
4. When reviewing the specified Cash Dividends Distribution Preplan, the Shareholders’ General Meeting shall
actively communicate with shareholders especially minority shareholders through various ways, and fully listen to
the opinion and appeals of minority shareholders, as well as timely answer the problems raised by the minority
shareholders. 5. The Company shall disclose the execution situation of profits distribution preplan and cash
dividends distribution policy in the annual report and semi-annual report. As for the Company gained profits but
didn’t issue the cash dividends distribution plan, the Board of Directors shall detailed explained on the reason of
no distribution, the reserving purpose and use plan of the funds not used in the cash dividends distribution in the
annual report, and the independent directors shall issue their independent opinion for such cash and disclose it
publicly. 6. The Supervisory Committee shall review the Profits Distribution Plan promulgated and revised by the
Board of Directors, and approve it with the agreement from over half of the whole supervisors. As for the
Company gained profits but didn’t issue the cash dividends distribution plan, the Supervisory Committee shall
issue their specified explanation and opinion on the execution situation of relevant policies and plan. Besides, it
shall supervise the execution situation of Profits Distribution Plan and Return Program for Shareholders. 7. In
accordance with the production and operation situation, investment plan and long-term development needs, or
changes in external operating environment, if it’s necessary to adjust the profits distribution policy, the Company
shall start from protecting the shareholders’ interest, and the profits distribution policy after adjustment shall not
violate the stipulations of relevant laws, regulations, normative documents and the Articles of Association; As for
the Proposal on Adjustment of Profits Distribution Policy, the independent directors and supervisors shall issue
their relevant opinion, and it shall be reviewed by the Board of Directors, then submitted to the Shareholders’
General Meeting for approval and finally passed by more than two thirds of the voting rights held by shareholders
attending the session. 8. The Company shall provide multiple ways (such as telephone, fax, email and interactive
platform, etc.) to accept the advice and supervision of all shareholders on dividends distribution for the Company.
(IX)Pre-plan for profit distribution or turning capital reserve into share capital
□Applicable √Inapplicable
(X)The accumulative retained profit as at the end of 2011 is a positive number but the
Company has not put forward a cash dividend pre-plan.
□Applicable √Inapplicable
(XI) Execution of the Management Rules for Information Insider and Management Rules for
Information Reporting, Submission to and Use by External Parties
In order to further perfect the Company’s corporate governance, strengthen the management on the information
disclosure for the Company, the Company promulgated the Management Rules for Information Insider and
Management Rules for Information Reporting, Submission to and Use by External Parties, which were reviewed
and approved at the 20th Session of the 5th Board of Directors. In the reporting period, the company secretary was
21
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responsible for the disclosure of sensitive information. Before the disclosure of any significant information in
periodical reports or interim announcements, the personnel who had access to the insider information all filled in
the Registration Form for Information Insiders in a timely manner as required by Anhui Securities Regulatory
Bureau and Shenzhen Stock Exchange. During the reporting period, no insider traded the Company’s shares
making use of the insider information before the disclosure of significant sensitive information that might
influence the Company’s stock price.
During the first half of the year, the Company strictly carried out the Management Rules for Information
Reporting, Submission to and Use by External Parties, effectively controlling the reporting and submission of the
Company’s business data, financial statements and other internal information to external parties. No information
of the Company was leaked against applicable laws and regulations during the reporting period.
(XII)Other events to be disclosed
In order to ensure the implementation of national principles, policies and regulations in the Company, ensure the
correctness and reliability of accounting information and other management information, protect the safety and
completeness as well as effective use of assets, ensure each production and operation activity of the Company to
be carried out orderly and efficiently and improve the management efficiency, in accordance with the
requirements of Standard for Internal Accounting Control, Basic Standard for Enterprise Internal Control and
Shenzhen Stock Exchange Guideline on Internal Control of Listed Companies as well as the Notice of CSRC
Anhui Bureau on Doing Well Relevant Work on the Implementation of Internal Control Rules by Listed
Companies, the Company further strengthened and standardized its internal control, overall enhances its operation
management capacity and risk prevention capacity, and carried out the internal control construction and
promulgated the Plan on the Implementation of Internal Control Construction. The Company has finished the
review work on implementation plan since Mar. 2012, and started to formally conduct every work in Apr. 2012,
as well as plans to finalize the Internal Control Management Brochure in Jul. 2012.
(XIII)The Company’s liabilities, credit changes and future cash arrangements for
debt-clearing (Only listed companies with convertible corporate bonds are required to fill the
table below.)
□Applicable √Inapplicable
VII. Significant Events
(I)Corporate governance
Since foundation, the Company constantly perfects corporate governance structure and standardize its
management strictly in accordance with the Company Law, Securities Law, Standard for Governance of Listed
Companies, Guide Opinion on Setting up Independent Directors Systems for Listed Companies as well as
principles and requirements of other relevant laws, regulations and normative documents.
(I) In the reporting period, as per requirements of Basic Standard for Enterprise Internal Control and Shenzhen
Stock Exchange Guideline on Internal Control of Listed Companies, the Company developed internal control
activity, implemented Rules on Management of Assets Provision for Impairment, The Policy on the Liability of
22
English Translation for Reference Only
Disclosing Materially Inaccurate Information in Annual Report, Rules for Management of External Information
User and Rules for Management of Insider of Inner Information, perfected internal control system step by step,
promoted normative operation and healthy development. The Board of Directors, the Supervisory Committee and
the management of the Company make decisions, perform rights and assume obligation strictly according to the
standard operation rules and inner control system so as to make sure the standard operation of the Company in the
frame of rules and systems.
(II) In the reporting period, according to requirements of China Securities Regulatory Commission and Rules for
Listing of Shares in Shenzhen Stock Exchange and with the “open, fair and just” principle, the Company seriously
and timely performed information disclosure obligation and guaranteed that the information disclosed is true,
accurate and complete, free from fictitious presentation, misleading statements or important omissions, so that all
the shareholders will equally acquaint themselves with all the notices of the Company.
(III) During the reporting period, the Company promulgated and implemented the Work Plan on the
Implementation of Internal Control Rules. Under the principles of careful plan and step-by-step implementation,
the Company actively carried out propaganda work of internal control construction. Besides, it comb the current
rules and regulations of every unit so as to find and make specified rectification plan, optimize part of
organizations, further make clear of the structure and functional duties of each unit, which makes the Company’s
system optimized and smooth and overall risk prevention capacity increased.
(IV) In the reporting period, there was no horizontal competition or related-party transactions arising from partial
system reform, characteristics of industry, state policies or merger or acquisition.
In a word, the Company has primarily established a structure of corporate governance in line with requirements
for listed companies, the actual corporate governance of the Company is in accordance with requirements of
regulatory documents on corporate governance of listed companies stipulated by CSRC.
(II)Execution of the plans for profit distribution, turning capital reserve into share capital or
new share issuance which had been made in the previous period and were carried out in the
reporting period
√Applicable □Inapplicable
The Company convened the 2011 Annual Shareholders’ General Meeting on 19 Apr. 2012, at which reviewed and
approved the Preplan on the 2011 Annual Profits Distribution and Transferring Capital Reserves to Share Capital:
Based on the total 251,800,000 shares at the year-end, the Company intended to distribute a cash dividend of
RMB 4.5 (tax included) for every 10 shares, totaling RMB113,310,000, for all shareholders. The surplus retained
profit of RMB 574,700,778.37 shall be carried over to next year; at the same time, transfer of capital reserves to
share capital by 10 shares upon each 10 shares to the whole shareholders, thus the total share capital will turn to
503,600,000 shares after the capitalization. The Company entrusted China Securities Depository and Clearing
Corporation Limited Shenzhen Branch (hereinafter referred to as “Clearing Company”) to conduct the equity
distribution on 27 Apr. 2012, which was finished on 4 May 2012.
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(III) Significant litigations and arbitrations
□Applicable √Inapplicable
The Company was not involved in any significant lawsuit or arbitration during the reporting period.
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(IV) Bankruptcy or reorganization events
□Applicable √Inapplicable
(V) Holding equity of other listed companies and joint financial enterprises
1. Securities investment
□Applicable √Inapplicable
Notes of securities investment
2. Holding equity of other listed companies
□Applicable √Inapplicable
Notes of holding equity of other listed companies
3. Holding equity of non-listed financial enterprises
□Applicable √Inapplicable
Notes of holding equity of non-listed financial enterprises
4. Trading stocks of other listed companies
□Applicable √Inapplicable
Notes of trading stocks of other listed companies
(VI) Assets transaction events
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English Translation for Reference Only
1. Purchase of assets
□Applicable √Inapplicable
Notes to purchase of assets:
2. Sale of assets
□Applicable √Inapplicable
Notes to sale of assets:
3. Exchange of assets
□Applicable √Inapplicable
Notes to exchange of assets:
26
English Translation for Reference Only
4. Business combination
□Applicable √Inapplicable
5. Progress of these events after the publication of the assets reorganization report or public notices on the
purchases or sales of assets, as well as the influences of these events on the operation results and financial
status of the Company in this reporting period
□Applicable √Inapplicable
(VII) Explanation on shareholding increase scheme during the reporting period proposed or
implemented by the principal shareholders and act-in-concert persons
□Applicable √Inapplicable
(VIII) Implementation situation and influence of equity incentive plan of the Company
□Applicable √Inapplicable
(IX) Significant related-party transactions
27
English Translation for Reference Only
1. Related-party transactions relevant to routine operation
√ Applicable □ Inapplicable
Reason for
significant
Pricing Proportion in Settlement
Type of the Content of the Transaction Transaction Influence on Market price difference
principle of the same kind of method of the
Related party Relationship related-party related-party price (RMB amount (RMB the profits of (RMB Ten between the
related-party transactions related-party
transaction transaction Ten thousand) Ten thousand) the Company thousand) transaction
transaction (%) transaction
price and the
market price
Affiliated
enterprise of
Anhui
controlling Purchase of Purchase of Cash on
Ruifuxiang Market price Market price 4,551.49 99.39% Naught 4,551.49 Naught
shareholder and goods alcohol delivery
Food Co., Ltd
actual
controller
Total -- -- 4,551.49 -- -- -- --
Details of large amount of sales returns Naught
Necessity and continuity of related-party transaction as well as
reason of choosing the related party (but not other transaction Naught
parties) to conduct the said transaction
Impacts of related-party transaction on independency of the
Naught
Company
Dependant degree of the Company on related party and relevant
Naught
solutions for the dependence (if any)
As for the prediction on the total amount of routine related-party
Naught
transactions to be occurred in the reporting period by relevant
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English Translation for Reference Only
types, the actual performance in the reporting period
Explanation on related-party transaction
Related-party transactions relevant to routine operation
Selling products and providing labor services to related parties Purchasing products and receiving labor services from related parties
Related party Transaction amount (RMB Ten Proportion in same kind of Transaction amount (RMB Ten Proportion in same kind of
thousand) transactions (%) thousand) transactions (%)
Gujing Group 0.61 0.28%
Gujing Group 10.77 4.86%
Anhui Ruifuxiang Food Co., Ltd 7.7 3.48%
Bozhou Gujing Hotel Co., Ltd. 3.58 1.62%
Anhui Gujing Real Estates Group Co., Ltd. 4.5 2.03%
Bozhou Ruineng Thermal Electric Co., Ltd. 2.77 1.25%
Bozhou Gujing Hotel Co., Ltd. 28 0.61%
Total 29.93 28 0.61%
Of which: the total amount of related-party transactions of the Company regarding selling products or providing labor services to the controlling shareholder and subsidiaries
during the reporting period stood at RMB 298,901.
2. Related-party transactions regarding purchase and sales of assets
□Applicable √Inapplicable
3. Significant related-party transitions with joint investments
□Applicable √Inapplicable
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4. Significant credits and liabilities with related parties
□Applicable √Inapplicable
Capital occupation during the reporting period and debt-clearing progress
□Applicable √Inapplicable
The accountability plan put forward by the Board of Directors when the Company had not completed collecting the capital occupied for non-operating purposes by the end
of the reporting period
□Applicable √Inapplicable
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5. Other significant related-party transactions
(X) Significant contracts and execution
1. The trust, contract and lease whose profits reaching more than 10% (including 10%) of the total profits
of the Company in the reporting period
(1)Status of trust
□Applicable √Inapplicable
(2)Particulars about contracting
□Applicable √Inapplicable
(3)Particulars about leasing
□Applicable √Inapplicable
2. Guarantees provided by the Company
□Applicable √Inapplicable
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3. Entrusted financial management
□Applicable √Inapplicable
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English Translation for Reference Only
4. No performance of significant contracts relevant to routine operation
5. Other significant contracts
□Applicable √Inapplicable
(XI) Explanation on issuing corporate bonds
□Applicable √Inapplicable
(XII) Performance of commitments
1. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the
reporting period, or such commitments carried down into the reporting period
□Applicable √Inapplicable
2. The Company’s assets or projects exist profitable prediction and the reporting period is in such
prediction period, it states the profits from the assets or projects reaching original prediction and relevant
reasons
□Applicable √Inapplicable
(XIII) Items of other comprehensive income
Unit: RMB Yuan
Items This reporting period Same period of last year
1. Profits/(losses) from available-for-sale financial assets
Less: Effects on income tax generating from available-for-sale
financial assets
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
2. Interests in the investee entities’ other comprehensive income as per
equity method
Less: Effects on income tax generating from the interests in the
investee entities’ other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging
instrument
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
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The adjustment value that is the converted initial recognition amount of
arbitrage project
Subtotal
4. Converted amount of foreign currency financial statements
Less: Net value of disposal of oversea operations that recognized into
current profit and loss
Subtotal
5. Other
Less: Effects on income tax generating from the others that included
into other comprehensive income
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
Total
(XIV) Particulars about researches, visits and interviews received in this reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided by the
Company
(XV) Particulars about engagement and disengagement of CPAs firm
Has this semi-annual report been audited?
□Yes √No □ Inapplicable
Whether changed to engage the CPAs firm?
□ Yes √ No □ Inapplicable
(XVI) Particulars about punishment and rectification order received by the Company, its
directors, supervisors, senior executives, shareholders, actual controller and acquirer
□Applicable √Inapplicable
(XVII) Explanation on other significant events
□Applicable √Inapplicable
(XVIII) Particulars about significant changes in the profitability, asset status and credit status
of the Company’s convertible bonds guarantor
(Only listed companies which issue convertible corporate bonds are required to fill the form below.)
□Applicable √Inapplicable
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English Translation for Reference Only
(XIX) Index for information disclosure
Internet website for disclosing
Newspapers for disclosing
Event Publishing date information and the searching
information and relevant page
approach
Announcement on Earnings China Securities Journal and Ta
18 Jan. 2012 www.cninfo.com.cn
Forecast Kung Pao
2011 Annual Work Report of
China Securities Journal and Ta
Independent Director (Wang 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Ruihua)
2011 Annual Work Report of
China Securities Journal and Ta
Independent Director (Wu 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Cisheng)
2011 Annual Work Report of
China Securities Journal and Ta
Independent Director (Liu 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Libin)
Announcement on Resolutions
China Securities Journal and Ta
Made at the 8th Session of the 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
th
6 Board of Directors
Announcement on Resolutions
China Securities Journal and Ta
Made at the 6th Session of the 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
6th Supervisory Committee
Announcement on 2012 Annual
China Securities Journal and Ta
Routine Related-party 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Transactions
Feasibility Report of White China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
Spirit Industrial Park Project Kung Pao
Announcement on Investment
China Securities Journal and Ta
on White Spirit Industrial Park 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Project
Verification Report on Deposit
China Securities Journal and Ta
and Use Situation of Raised 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Funds for 2011
Independent Opinion of
Independent Directors on China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
th
Resolutions of the 8 Session Kung Pao
of the 6th Board of Directors
Independent Opinion of
Independent Directors on China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
Appropriation of the Kung Pao
Company’s Capital by
35
English Translation for Reference Only
Controlling Shareholder and
Related Parties & External
Guarantees
Work Plan on Implementation China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
of Internal Control Kung Pao
Review Opinion of Supervisory
Committee on the China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
Self-appraisal Report of Kung Pao
Internal Control in 2011
Review Opinion of GF
Securities Co., Ltd. on the
Self-appraisal Report of China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
Internal Control in 2011 for Kung Pao
Anhui Gujing Distillery Co.,
Ltd.
Notice on Convening the 2011
China Securities Journal and Ta
Annual Shareholders’ General 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Meeting
Announcement on Changes in
China Securities Journal and Ta
Accounting Estimates of the 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Company
China Securities Journal and Ta
2011 Annual Auditor’s Report 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Summary of 2011 Annual China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
Report Kung Pao
China Securities Journal and Ta
2011 Annual Report 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Special Report of the Board of
Directors on the Deposit and China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
Use Situation of the Raised Kung Pao
Funds in 2011
Self-appraisal Report of China Securities Journal and Ta
29 Mar. 2012 www.cninfo.com.cn
Internal Control in 2011 Kung Pao
Special Explanation on
Appropriation of the
China Securities Journal and Ta
Company’s Capital by 29 Mar. 2012 www.cninfo.com.cn
Kung Pao
Controlling Shareholder and
Related Parties (2011)
Announcement on Earnings China Securities Journal and Ta
12 Apr. 2012 www.cninfo.com.cn
Forecast Kung Pao
36
English Translation for Reference Only
Letter of Legal Opinion on the
China Securities Journal and Ta
2011 Annual Shareholders’ 20 Apr. 2012 www.cninfo.com.cn
Kung Pao
General Meeting
Announcement on Resolutions
China Securities Journal and Ta
Made at the 2011 Annual 20 Apr. 2012 www.cninfo.com.cn
Kung Pao
Shareholders’ General Meeting
Announcement on Resolutions
China Securities Journal and Ta
Made at the 9th Session of the 23 Apr. 2012 www.cninfo.com.cn
Kung Pao
6th Board of Directors
Announcement on Resolutions
China Securities Journal and Ta
Made at the 7th Session of the 23 Apr. 2012 www.cninfo.com.cn
Kung Pao
th
6 Supervisory Committee
Announcement on Using the
Bank Acceptance Bills to Pay China Securities Journal and Ta
23 Apr. 2012 www.cninfo.com.cn
the Funds of Raised Funds Kung Pao
Investment Projects
Review Opinion of GF
Securities Co., Ltd. on Using
the Bank Acceptance Bills to China Securities Journal and Ta
23 Apr. 2012 www.cninfo.com.cn
Pay the Construction Charges Kung Pao
of Raised Funds Investment
Projects for the Company
Independent Opinion of
Independent Directors on the
China Securities Journal and Ta
Proposal on Using the Bank 23 Apr. 2012 www.cninfo.com.cn
Kung Pao
Acceptance Bills to Pay the
Input Funds of Raised Funds
Summary of the First Quarterly China Securities Journal and Ta
23 Apr. 2012 www.cninfo.com.cn
Report for 2012 Kung Pao
The First Quarterly Report for China Securities Journal and Ta
23 Apr. 2012 www.cninfo.com.cn
2012 Kung Pao
Announcement on Equity
China Securities Journal and Ta
Distribution and Execution for 24 Apr. 2012 www.cninfo.com.cn
Kung Pao
2011
Independent Opinion of
Independent Directors on China Securities Journal and Ta
13 Jun. 2012 www.cninfo.com.cn
Engagement of Senior Kung Pao
Management
Announcement on Resolutions
China Securities Journal and Ta
Made at the Special Session of 13 Jun. 2012 www.cninfo.com.cn
Kung Pao
the 6th Board of Directors
37
English Translation for Reference Only
Notice on Convening the 1st
China Securities Journal and Ta
Special Shareholders’ General 25 Jul. 2012 www.cninfo.com.cn
Kung Pao
Meeting for 2012
Announcement on Resolutions
China Securities Journal and Ta
Made at the 10th Session of the 25 Jul. 2012 www.cninfo.com.cn
Kung Pao
th
6 Board of Directors
Return Program for
China Securities Journal and Ta
Shareholders(2012~2014) 25 Jul. 2012 www.cninfo.com.cn
Kung Pao
Independent Opinion of
Independent Directors on
China Securities Journal and Ta
Promulgation of the Return 25 Jul. 2012 www.cninfo.com.cn
Kung Pao
Program for
Shareholders(2012~2014)
Preliminary Earnings Estimate China Securities Journal and Ta
25 Jul. 2012 www.cninfo.com.cn
for the First Half Year of 2012 Kung Pao
Suggestive Announcement on
China Securities Journal and Ta
Release of Restricted Shares by 8 Aug. 2012 www.cninfo.com.cn
Kung Pao
the Board of Directors
VIII. Financial Report
(I)Audit opinion
Has this semi-annual report been audited?
□Yes √ No □ Inapplicable
(II)Financial statements
Consolidated statements or not?
√ Yes □ No □ Inapplicable
The monetary unit in the financial statements of the financial report is RMB Yuan if not specified otherwise.
Monetary unit of notes to financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Anhui Gujing Distillery Company Limited
Unit: RMB Yuan
Item Note 30 Jun. 2012 31 Dec. 2011
Current Assets:
Monetary funds 1,824,743,757.27 2,082,032,491.33
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English Translation for Reference Only
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable 625,430,346.43 490,543,018.49
Accounts receivable 27,254,959.72 37,685,831.22
Accounts paid in advance 206,035,812.34 233,262,710.73
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable 8,592,066.30 4,451,540.35
Dividend receivable
Other accounts receivable 20,550,532.33 7,882,417.86
Financial assets purchased under
agreements to resell
Inventories 536,062,640.51 578,157,069.43
Non-current assets due within 1
year
Other current assets
Total current assets 3,248,670,114.90 3,434,015,079.41
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment
Investing property 32,146,584.20 32,558,410.26
Fixed assets 396,187,708.92 362,778,190.84
Construction in progress 227,723,809.28 133,017,100.51
Engineering materials 3,635,801.34
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 325,467,547.65 248,594,232.04
39
English Translation for Reference Only
R&D expense
Goodwill
Long-term deferred expenses 7,178,678.18 9,678,465.54
Deferred income tax assets 20,918,608.11 21,178,071.70
Other non-current assets
Total of non-current assets 1,013,258,737.68 807,804,470.89
Total assets 4,261,928,852.58 4,241,819,550.30
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Customer bank deposits and due
to banks and other financial
institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 10,000,000.00
Accounts payable 152,183,085.16 219,823,856.45
Accounts received in advance 82,399,866.61 135,597,187.88
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
131,335,468.19 192,762,077.27
payable
Tax payable 522,050,748.40 671,079,511.43
Interest payable
Dividend payable
Other accounts payable 290,916,502.05 248,890,018.78
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting
of securities
Non-current liabilities due within
1 year
40
English Translation for Reference Only
Other current liabilities 1,037,854.38 2,075,708.75
Total current liabilities 1,189,923,524.79 1,470,228,360.56
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 10,475,905.29 10,475,905.29
Total non-current liabilities 10,475,905.29 10,475,905.29
Total liabilities 1,200,399,430.08 1,480,704,265.85
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 503,600,000.00 251,800,000.00
Capital reserves 1,294,938,493.19 1,546,738,493.19
Less: Treasury stock
Specific reserves
Surplus reserves 147,070,297.60 147,070,297.60
Provisions for general risks
Retained profits 1,115,920,631.71 815,506,493.66
Foreign exchange difference
Total equity attributable to owners
3,061,529,422.50 2,761,115,284.45
of the Company
Minority interests
Total owners’ (or shareholders’)
3,061,529,422.50 2,761,115,284.45
equity
Total liabilities and owners’ (or
4,261,928,852.58 4,241,819,550.30
shareholders’) equity
Legal representative: Yu Lin Person-in-charge of the accounting work: Ye Changqing
Chief of the accounting division: Xia Xueyun
2. Balance sheet of the Company
Unit: RMB Yuan
41
English Translation for Reference Only
Item Note 30 Jun. 2012 31 Dec. 2011
Current Assets:
Monetary funds 1,588,912,478.60 1,885,937,555.53
Transactional financial assets
Notes receivable 616,203,956.57 481,125,332.25
Accounts receivable 6,062,711.93 1,857,487.49
Accounts paid in advance 199,999,272.47 148,873,681.27
Interest receivable 8,592,066.30 4,395,740.35
Dividend receivable
Other accounts receivable 225,188,338.68 263,635,938.96
Inventories 493,342,878.55 545,878,714.66
Non-current assets due within 1
year
Other current assets
Total current assets 3,138,301,703.10 3,331,704,450.51
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 267,989,408.32 247,991,408.32
Investing property 32,146,584.20 32,558,410.26
Fixed assets 194,049,105.90 152,140,192.21
Construction in progress 163,533,607.63 132,982,180.51
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 203,209,284.42 124,709,474.17
R&D expense
Goodwill
Long-term deferred expenses 3,597,906.56 4,536,265.22
Deferred income tax assets 19,942,284.56 20,167,034.56
Other non-current assets
Total of non-current assets 884,468,181.59 715,084,965.25
42
English Translation for Reference Only
Total assets 4,022,769,884.69 4,046,789,415.76
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 10,000,000.00
Accounts payable 134,848,972.87 225,568,150.93
Accounts received in advance 871,997,930.67 590,174,171.08
Employee’s compensation
71,779,025.06 102,876,125.19
payable
Tax payable 281,548,570.11 446,265,127.40
Interest payable
Dividend payable
Other accounts payable 87,856,444.49 89,012,417.91
Non-current liabilities due within
1 year
Other current liabilities 899,000.00 1,798,000.00
Total current liabilities 1,458,929,943.20 1,455,693,992.51
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 10,354,500.20 10,354,500.20
Total non-current liabilities 10,354,500.20 10,354,500.20
Total liabilities 1,469,284,443.40 1,466,048,492.71
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 503,600,000.00 251,800,000.00
Capital reserves 1,247,162,107.35 1,498,962,107.35
Less: Treasury stock
Specific reserves
Surplus reserves 141,968,037.33 141,968,037.33
Provision for general risks
43
English Translation for Reference Only
Retained profits 660,755,296.61 688,010,778.37
Foreign exchange difference
Total owners’ (or shareholders’)
2,553,485,441.29 2,580,740,923.05
equity
Total liabilities and owners’ (or
4,022,769,884.69 4,046,789,415.76
shareholders’) equity
3. Consolidated income statement
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total operating revenues 2,227,809,202.69 1,583,297,669.82
Including: Sales income
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost
Including: Cost of sales 573,199,355.13 405,155,605.30
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate charges 363,847,284.75 239,474,072.21
Selling and distribution
601,302,281.14 337,004,379.60
expenses
Administrative expenses 181,575,060.50 222,974,971.23
Financial expenses -40,529,384.46 -10,495,581.72
Asset impairment loss 475,424.46
Add: Gain/(loss) from change in fair
value (“-” means loss)
44
English Translation for Reference Only
Gain/(loss) from investment
(“-” means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 548,414,605.63 388,708,798.74
Add: non-operating income 8,591,072.54 5,916,789.73
Less: non-operating expense 1,207,011.55 286,188.36
Including: loss from non-current
303,137.32 122,757.19
asset disposal
IV. Total profit (“-” means loss) 555,798,666.62 394,339,400.11
Less: Income tax expense 142,074,528.57 106,391,921.25
V. Net profit (“-” means loss) 413,724,138.05 287,947,478.86
Including: Net profit achieved
by combined parties before the 0.00
combinations
Attributable to owners of the
413,724,138.05 287,947,478.86
Company
Minority shareholders’ income
VI. Earnings per share -- --
(I) Basic earnings per share 0.82 1.23
(II) Diluted earnings per share 0.82 1.23
Ⅶ. Other comprehensive incomes
Ⅷ. Total comprehensive incomes 413,724,138.05 287,947,478.86
Attributable to owners of the
413,724,138.05 287,947,478.86
Company
Attributable to minority
shareholders
Where business mergers under the same control occurred in this report period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: Yu Lin Person-in-charge of the accounting work: Ye Changqing
Chief of the accounting division: Xia Xueyun
4. Income statement of the Company
Unit: RMB Yuan
45
English Translation for Reference Only
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total sales 1,373,991,362.63 926,197,487.04
Less: cost of sales 552,748,073.80 393,587,049.61
Business taxes and surcharges 343,532,474.26 226,271,977.03
Distribution expenses 284,453,474.89
Administrative expenses 99,682,004.17 160,408,927.06
Financial costs -21,895,510.32 -5,222,173.59
Impairment loss 115,880.47
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
299,516.89
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 115,470,845.83 151,335,343.35
Add: non-business income 6,166,248.63 1,901,357.07
Less: non-business expense 431,479.11 129,123.05
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 121,205,615.35 153,107,577.37
Less: income tax expense 35,151,097.11 49,721,597.50
IV. Net profit (“-” means loss) 86,054,518.24 103,385,979.87
V. Earnings per share -- --
(I) Basic earnings per share 0.17 0.44
(II) Diluted earnings per share 0.17 0.44
VI. Other comprehensive income
VII. Total comprehensive income 86,054,518.24 103,385,979.87
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
1,865,698,167.01 1,297,349,192.92
commodities and rendering of service
Net increase of deposits from
customers and dues from banks
46
English Translation for Reference Only
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received 422,693.25
Other cash received relating to
140,956,983.36 45,771,101.29
operating activities
Subtotal of cash inflows from operating
2,006,655,150.37 1,343,542,987.46
activities
Cash paid for goods and services 414,219,022.36 285,643,594.11
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 231,081,015.76 157,164,781.96
Various taxes paid 1,007,128,786.60 531,346,111.98
Other cash payment relating to
206,292,198.93 174,302,577.83
operating activities
47
English Translation for Reference Only
Subtotal of cash outflows from
1,858,721,023.65 1,148,457,065.88
operating activities
Net cash flows from operating activities 147,934,126.72 195,085,921.58
II. Cash flows from investing activities:
Cash received from withdrawal of
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 386,600.00 64,799.30
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
386,600.00 64,799.30
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 291,847,486.87 93,006,246.14
assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
291,847,486.87 93,006,246.14
investing activities
Net cash flows from investing activities -291,460,886.87 -92,941,446.84
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings
Cash received from issuance of
48
English Translation for Reference Only
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
activities
Repayment of borrowings
Cash paid for interest expenses and
113,761,973.91 82,296,583.50
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
Other cash payments relating to
financing activities
Sub-total of cash outflows from
113,761,973.91 82,296,583.50
financing activities
Net cash flows from financing activities -113,761,973.91 -82,296,583.50
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-257,288,734.06 19,847,891.24
equivalents
Add: Opening balance of cash and
2,082,032,491.33 643,231,404.42
cash equivalents
VI. Closing balance of cash and cash
1,824,743,757.27 663,079,295.66
equivalents
6. Cash flow statement of the Company
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
1,395,279,587.72 920,002,968.03
commodities and rendering of service
Tax refunds received
Other cash received relating to
41,126,590.91 34,636,174.52
operating activities
Subtotal of cash inflows from operating
1,436,406,178.63 954,639,142.55
activities
Cash paid for goods and services 479,559,767.86 188,896,577.24
Cash paid to and for employees 140,012,751.43 75,008,438.31
49
English Translation for Reference Only
Various taxes paid 579,265,398.31 386,162,796.55
Other cash payment relating to
122,148,502.51 35,367,982.85
operating activities
Subtotal of cash outflows from
1,320,986,420.11 685,435,794.95
operating activities
Net cash flows from operating activities 115,419,758.52 269,203,347.60
II. Cash flows from investing activities:
Cash received from retraction of
9,900,000.00
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 327,600.00 3,275.55
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
327,600.00 9,903,275.55
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 279,012,461.54 87,152,430.25
assets
Cash paid for investment 19,998,000.00
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
299,010,461.54 87,152,430.25
investing activities
Net cash flows from investing activities -298,682,861.54 -77,249,154.70
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings
Cash received from issuance of
bonds
50
English Translation for Reference Only
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
activities
Repayment of borrowings
Cash paid for interest expenses and
113,761,973.91 82,296,583.50
distribution of dividends or profit
Other cash payments relating to
financing activities
Sub-total of cash outflows from
113,761,973.91 82,296,583.50
financing activities
Net cash flows from financing activities -113,761,973.91 -82,296,583.50
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-297,025,076.93 109,657,609.40
equivalents
Add: Opening balance of cash and
1,885,937,555.53 480,737,398.56
cash equivalents
VI. Closing balance of cash and cash
1,588,912,478.60 590,395,007.96
equivalents
7. Consolidated statement of changes in owners’ equity
Reporting period
Unit: RMB Yuan
Reporting period
Equity attributable to owners of the Company
Paid-up
Total
Item capital Less: General Minority
Capital Specific Surplus Retaine owners’
(or treasury risk Others interests
reserve reserve reserve d profit equity
share stock reserve
capital)
I. Balance at the end of the 251,800 1,546,73 147,070 815,506, 2,761,115,
previous year ,000.00 8,493.19 ,297.60 493.66 284.45
Add: change of accounting
policy
Correction of errors in
previous periods
Other
51
English Translation for Reference Only
II. Balance at the beginning of 251,800 1,546,73 147,070 815,506, 2,761,115,
the year ,000.00 8,493.19 ,297.60 493.66 284.45
III. Increase/ decrease of
251,800 -251,80 300,414, 300,414,13
amount in the year (“-” means
,000.00 0,000.00 138.05 8.05
decrease)
413,724, 413,724,13
(I) Net profit
138.05 8.05
(II) Other comprehensive
incomes
413,724, 413,724,13
Subtotal of (I) and (II)
138.05 8.05
(III) Capital paid in and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners
1. Capital paid in by
owners
2. Amounts of share-based
payments recognized in
owners’ equity
3. Others
-113,31 -113,310,0
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0,000.00 00.00
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to -113,31 -113,310,0
owners (or shareholders) 0,000.00 00.00
4. Other
(V) Internal carry-forward of 251,800 -251,80
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity ,000.00 0,000.00
1. New increase of capital
251,800 -251,80
(or share capital) from capital
,000.00 0,000.00
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
52
English Translation for Reference Only
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
503,600 1,294,93 147,070 1,115,92 3,061,529,
IV. Closing balance
,000.00 8,493.19 ,297.60 0,631.71 422.50
Last year
Unit: RMB Yuan
Last year
Equity attributable to owners of the Company
Paid-up Total
Item Minority
Less: General
capital Capital Specific Surplus Retaine owners’
treasury risk Others interests
(or share reserve reserve reserve d profit equity
stock reserve
capital)
I. Balance at the end of the 235,000, 336,039 97,283, 381,153, 1,049,475,
previous year 000.00 ,042.92 190.70 314.20 547.82
Add: retrospective
adjustments due to business
combinations under the same
control
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 235,000, 336,039 97,283, 381,153, 1,049,475,
the year 000.00 ,042.92 190.70 314.20 547.82
III. Increase/ decrease of 1,210,6
16,800,0 49,787, 434,353, 1,711,639,
amount in the year (“-” means 99,450.
00.00 106.90 179.46 736.63
decrease) 27
566,390, 566,390,28
(I) Net profit
286.36 6.36
(II) Other comprehensive
incomes
566,390, 566,390,28
Subtotal of (I) and (II)
286.36 6.36
(III) Capital paid in and 16,800,0 1,210,6 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,227,499,
53
English Translation for Reference Only
reduced by owners 00.00 99,450. 450.27
27
1,210,6
1. Capital paid in by 16,800,0 1,227,499,
99,450.
owners 00.00 450.27
27
2. Amounts of share-based
payments recognized in
owners’ equity
3. Others
49,787, -132,03 -82,250,00
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00
106.90 7,106.90 0.00
1. Appropriations to 49,787, -49,787,
surplus reserves 106.90 106.90
2. Appropriations to
general risk provisions
3. Appropriations to -82,250, -82,250,00
owners (or shareholders) 000.00 0.00
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
1,546,7
251,800, 147,070 815,506, 2,761,115,
IV. Closing balance 38,493.
000.00 ,297.60 493.66 284.45
19
54
English Translation for Reference Only
8. Statement of changes in owners’ equity of the Company
Reporting period
Unit: RMB Yuan
Reporting period
Paid-up
Less: General Total
Item capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 251,800,00 1,498,962, 141,968,03 688,010,77 2,580,740,
previous year 0.00 107.35 7.33 8.37 923.05
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 251,800,00 1,498,962, 141,968,03 688,010,77 2,580,740,
the year 0.00 107.35 7.33 8.37 923.05
III. Increase/ decrease of amount 251,800,00 -251,800,0 -27,255,48 -27,255,48
in the year (“-” means decrease) 0.00 00.00 1.76 1.76
86,054,518 86,054,518
(I) Net profit
.24 .24
(II) Other comprehensive
incomes
86,054,518 86,054,518
Subtotal of (I) and (II)
.24 .24
(III) Capital paid in and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
-113,310,0 -113,310,0
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00
00.00 00.00
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
55
English Translation for Reference Only
3. Appropriations to owners -113,310,0 -113,310,0
(or shareholders) 00.00 00.00
4. Other
(V) Internal carry-forward of 251,800,00 -251,800,0
0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity 0.00 00.00
1. New increase of capital
251,800,00 -251,800,0
(or share capital) from capital
0.00 00.00
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
503,600,00 1,247,162, 141,968,03 660,755,29 2,553,485,
IV. Closing balance
0.00 107.35 7.33 6.61 441.29
Last year
Unit: RMB Yuan
Last year
Paid-up
Less: General Total
Item capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 235,000,00 288,262,65 92,180,930 322,176,81 937,620,40
previous year 0.00 7.08 .43 6.26 3.77
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 235,000,00 288,262,65 92,180,930 322,176,81 937,620,40
the year 0.00 7.08 .43 6.26 3.77
III. Increase/ decrease of amount 16,800,000 1,210,699, 49,787,106 365,833,96 1,643,120,
in the year (“-” means decrease) .00 450.27 .90 2.11 519.28
56
English Translation for Reference Only
497,871,06 497,871,06
(I) Net profit
9.01 9.01
(II) Other comprehensive
incomes
497,871,06 497,871,06
Subtotal of (I) and (II)
9.01 9.01
(III) Capital paid in and 16,800,000 1,210,699, 1,227,499,
0.00 0.00 0.00 0.00 0.00
reduced by owners .00 450.27 450.27
16,800,000 1,210,699, 1,227,499,
1. Capital paid in by owners
.00 450.27 450.27
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
49,787,106 -132,037,1 -82,250,00
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00
.90 06.90 0.00
1. Appropriations to surplus 49,787,106 -49,787,10
reserves .90 6.90
2. Appropriations to general
risk provisions
3. Appropriations to owners -82,250,00 -82,250,00
(or shareholders) 0.00 0.00
4. Other
(V) Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
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251,800,00 1,498,962, 141,968,03 688,010,77 2,580,740,
IV. Closing balance
0.00 107.35 7.33 8.37 923.05
(III) Company Profile
1. Company history
Anhui Gujing Distillery Company Limited (“the Company”) was registered in the People Republic of China on 30
May 1996.
The Company has been issued 60,000,000 domestic listed foreign shares (“B” shares) in June 1996 and
20,000,000 ordinary shares (“A shares) on September 1996, ordinary shares are listed in national and par value is
one yuan per share. Those A share and B share are listed in Shenzhen Stock exchange.
On May 29, 2006, a shareholder meeting was held to discuss and approval a program of equity division of A share,
the program was implement in June 2006. After implementation, all shares are outstanding share, which include
147,000,000 shares with restrict condition on disposal, represent 62.55% of total equity, and 88,000,000 shares
without restrict condition on disposal, represent 37.45% of total equity.
The Company issued
on June 27, 2007, 11,750,000 outstanding shares with restrict condition on disposal are listed in stock market on
June 29, 2007. Up to that day, outstanding shares with restrict condition on disposal are 135,250,000, representing
57.55% of total equity, the share without restrict condition are 99,750,000, representing 42.45% of total equity.
The Company issued
on July 17, 2008, 11,750,000 outstanding shares with restrict condition on disposal are listed in stock market on
July 18, 2008. Up to that day, outstanding shares with restrict condition on disposal are 123,500,000, representing
52.55% of total equity, the share without restrict condition are 111,500,000, representing 47.45% of total equity.
The Company issued
on July 24, 2009, 123,500,000 outstanding shares with restrict condition on disposal are listed in stock market on
29 July, 2009. Up to that day, the Company’s all shares are all tradable.
As approved by the CSRC Document Zheng-Jian-Xu-Ke [2011] No. 943, the Company privately offered
16,800,000 ordinary shares (A-shares) to special investors on 15 Jul. 2011, with a par value of RMB 1 and the
price of RMB 75.00 per share, raising RMB 1,260,000,000.00 in total, the net amount of raised funds stood at
RMB 1,227,499,450.27 after deducting RMB 32,500,549.73 of various issuance expenses. Reanda Certified
Public Accountants verified the raised capital upon its arrival and issued the Capital Verification Report
Reanda-Yan-Zi [2011] No. 1065.
In accordance with the resolutions made at the 2011 Annual Shareholders’ General Meeting, basing on the total
share capital of 251,800,000 shares, the Company decided to transfer the capital reserves to share capital by 10
shares upon each 10 shares to the A-share holders registered in the Company on 27 Apr. 2012 and the B-share
holders registered in the Company on 4 May 2012, thus the total share capital increased to RMB 503,600,000
after the capitalization. Reanda Certified Public Accountants verified the raised capital (Capital Verification
Report Reanda-Yan-Zi [2012] No. 1022). Up to 4 May 2012, the Company has transferred RMB 251,800,000 of
capital reserves to share capital.
Legal representative of the Company: Yu Lin
Registration address of the Company: Gujing Town, Bozhou City, Anhui Province
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Parent company of the Company: Anhui Gujing Group Co., Ltd. (“the Gujing Group” hereinafter)
2. The industry
The Company belongs to the food manufacturing industry.
3. Scope of business
The approved business of the Company including procurement of grain (operating with business license),
manufacture of distilled spirits, wine distilling facilities, packaging material, bottles, alcohol, grease (limited to
byproducts from wine manufacture), and research and development of high-tech, biotechnology development,
agricultural and sideline products deep processing, as well as sale of self-manufacturing products.
4. Main product
The company’s main product is grain distilled spirit.
5. Explanation on changes in main business, significant changes in equity, occurrence of significant merger
and reorganization during the reporting period
There are no changes in main business, occurrence of significant merger or reorganization for the Company
during the reporting period.
(IV) Main accounting policies and estimates and corrections of previous accounting errors
1. Basis for the preparation of financial statements
The financial statements of the Company have been prepared on the going concern basis with reference to the
actual occurrence of transactions and events and in accordance with the China Enterprise Accounting Standards
(CAS) issued by the Ministry of Finance on 15 Feb. 2006 and the significant accounting policies and estimates as
set out in part two of this FS notes.
2. Declaration of Compliance with the Enterprise Accounting Standards
The financial statements of the Company have been prepared in accordance with the Enterprise Accounting
Standards to present truly and completely the financial position, result of operation and cash flow and the relevant
information of the Company.
3. Accounting year
The Company employs a period of calendar days from 1 Jan. to 31 Dec. each year as accounting year.
4. Bookkeeping base currency
The Company’s bookkeeping base currency is Renminbi (“RMB”).
Bookkeeping base currency for overseas subsidiaries
5. Accounting treatment of the business combination that is under the same control and not under the same
control.
(1) Accounting treatment of the business combination that is under the same control
Those assets and liabilities obtained by the Company during the business combination should be recognized in the
carrying value of the equity of the merged party on the merger date. The difference between the carrying amount
of the net assets obtained and carrying amount of the merger consideration (or total par value of issued shares )
paid shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess
shall be adjusted against retained earnings.
(2) Accounting treatment of the business combination that is not under the same control
The consideration paid for the business combination exceeds the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the difference shall be recognized as goodwill; Where the cost of combination is
less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, should be review the fair
value of acquiree’s identifiable assets, liabilities and contingency liabilities , as well as the computation of
combination cost, after reassessment, the difference shall be recognized in profit or loss at the current period.
6. Methods for preparing consolidated financial statements
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(1) Preparation methods for consolidated financial statements
1) Principle for determining the consolidation scope
The consolidated financial statements prepared are in accordance with the No. 33 Enterprise Accounting
Standards – Consolidated Financial Statement issued in Feb. 2006. The consolidated financial statements
incorporate the financial statements of the Company and its subsidiaries directly controlled or indirectly controlled
by the Company as well as units with special purpose. Control is achieved where the Company has the power to
govern the financial and operating policies of an invested enterprise so as to obtain benefits from its operating
activities.
If there is evidence provide that the invested company is not controlled by holding company, the invested
company would not be included in the consolidation scope.
2) Purchase and sale of equities of subsidiaries
The effective purchase day and sales day shall be recognized after transferring the related risks and reward of
ownership of equities of subsidiaries. For the subsidiaries not under the same control from business combination,
the results of operation and cash flow of subsidiaries before disposal or after acquired the share have been
included in the consolidated income statement and consolidated cash flow statement; for the subsidiaries under the
same control from business combination, the operation results and cash flow from beginning of combination
period to consolidation date have been included in the consolidated income statement and consolidated cash flow
statement and disclosed in statement individual, the comparative amount in consolidation statement has been
adjusted accordingly.
For the long-term equity investment gained from acquiring minority equity shares of subsidiaries, on the date of
preparing consolidation statement, the difference between the value of the new long-term equity investment and
the value of subsidiary’s net assets calculated by proportion of shareholdings from acquiring date (or combination
date) shall be adjusted to owners’ equity(capital reserve), if the capital reserve is not sufficient to absorb the
difference, any excess shall be adjusted against retained earnings.
3) Adjusting the subsidiary’ financial statement when different accounting policy and reporting period existing
between the subsidiaries and the parent company.
If the subsidiary has different accounting policy and reporting period with the parent company, the Company has
made relevant adjustment in the subsidiary’ financial statement according to the parent company’s accounting
policy while preparing its consolidated financial statement; For those subsidiary acquired not under the same
control, the Company has made relevant adjustment in the subsidiary’ financial statement according to the fair
value of identifiable assets, liabilities and contingent liabilities of the subsidiary on the acquisition date.
4) Consolidation method
All significant accounts and transactions between the Company and the subsidiary and those between the
subsidiaries are offset while preparing consolidated financial statement.
The minority interest in the net assets of merged subsidiary shall be individually listed under the owners’ equity in
the consolidated financial statement.
(2) As for the event about purchasing and then selling (or selling and then purchasing) equities of the same
subsidiary, the Company shall disclose relevant accounting treatment methods.
7. Standard of cash and cash equivalents
Cash equivalents are short-term (normally with a maturity date within three months from the date of acquisition),
high-liquidity investments that are readily convertible to known amounts of cash and low-risk of changes in value.
8. Foreign currency business and translation of foreign currency financial statement
(1) Foreign currency transactions
The Company’s foreign currency transactions are converted into presentation currency (RMB) at spot exchange
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rates of transaction date (usually refer to the middle price of the foreign exchange rate of transaction date).
On the balance sheet date, those foreign currency monetary items within the financial statement shall be converted
at the spot rates on the balance sheet date. The exchange difference caused by the change in the exchange rate
from the initial recognized date and the current balance sheet date shall be included in current profits and losses.
Those foreign currency non-monetary items measured by historical cost shall still be converted at the spot
exchange rate of transaction date, without changing its presentation currency amount. Those foreign currency
non-monetary items measured by fair value shall be converted at the spot exchange rate on the day when the fair
value can be determined, the difference between amount after converted into presentation currency and the
original presentation currency amount shall be treated as the changes in the fair value and recognized in the
current profits and losses.
(2) Translation of foreign currency financial statement
① Those items of assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet
date; Items of owners’ equity other than undistributed profits shall be converted at the spot rate on the transaction
date.
② Those items of income and expenses in income statement shall be converted at the spot rate on the transaction
date.
The difference caused from the above translation method shall be individually listed under the owners’ equity in
the balance sheet.
③ The items in cash flow statement shall be converted at the spot rate on the occurrence date of the cash flow.
And the affected amount due to the changes of exchange rate shall be as the adjusted item and individually listed
in the cash flow statement.
9. Financial Instruments
(1) Classification of financial instruments
The Company classified its financial assets into four categories in accordance with the investment purpose and
economic substance, which are financial assets measured at fair value and the change in fair value recorded into
current profits and losses, held-to-maturity investments, loans and receivables, available-for-sale financial assets.
The financial liabilities are divided into financial liabilities measured at fair value and the change in fair value
recorded into current profits and losses and other financial liabilities according to the economic substance.
① Financial assets or financial liabilities measured at fair value and the change in fair value recorded into current
profits and losses: including transactional financial assets or financial liabilities and financial assets or financial
liabilities designated by the Company to be measured at fair value and the change in fair value recorded into
current profits and losses.
Transactional financial assets or financial liabilities refer to the financial assets or financial liabilities meeting one
of the following conditions:
a. The main purpose of acquiring the financial assets or bearing the financial liabilities is to sell or repurchase in
the near term; or
b. Part of a portfolio of identified financial instruments that are managed together and there is evidence that the
Company manage them under the pattern of short-term profit-gaining recently; or
c. A derivative instrument (except for a derivative instrument that is a designated and effective hedging instrument,
a derivative instrument of financial guarantee contract, a derivative instrument that connected with and settled by
equity instrument, whose price could not be quoted in active market and the fair value could not be measured
reasonably).
Financial assets or financial liabilities designated by the Company to be measured at fair value and the change in
fair value recorded into current profits and losses refer to the financial assets or financial liabilities meeting one of
the following conditions:
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a. The designation can eliminate or significantly reduce the inconsistent situation of the relevant gains and losses
on the aspects of recognition and measurement caused by adopting different measurement basis of financial assets
and financial liabilities;
b. The official documents on Company risk management or investment strategy has stated that the financial assets
portfolio, the financial liabilities portfolio, or the financial assets and financial liabilities portfolio are managed
and evaluated on the basis of fair value and reported to key management person.
② Held-to-maturity investments: refer to non-derivative financial assets with fixed maturity date, fixed or
determinable payments that enterprise has the clear intention and ability to hold to maturity. Mainly include
fixed-rate national bonds, floating-rate corporate bonds and etc. that the Company's management has a clear
intention and ability to hold to maturity.
③ Receivables: are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. Receivables of the Company mainly refer to the Company's accounts receivable and other accounts
receivable formed by sales of goods or rendering of services.
④ Available-for-sale financial assets: are those non-derivative financial assets that are designated as available for
sale at initial recognition, and those financial assets not divided into financial assets measured at fair value and the
change in fair value recorded into current profits and losses, held-to-maturity investments, loans and receivables.
⑤ Other financial liabilities: are those financial liabilities not divided into financial liabilities measured at fair
value and the change in fair value recorded into current profits and losses.
(2) Recognition basis and measurements for financial instruments
The Company’s financial asset or financial liability is recognized at its fair value initially. For financial assets or
financial liabilities measured at fair value and the change in fair value recorded into current profits and losses,
relevant transaction costs that are directly recorded into current profits and losses; for other types of financial
assets or financial liabilities, relevant transaction costs are recorded into the initial recognized amount.
Subsequent measurement of financial assets and financial liabilities by the Company:
1. Financial assets or financial liabilities measured at fair value and the change in fair value recorded into current
profits and losses shall be made subsequent measurement at its fair value, the gains and losses from the change
of fair value and termination of recognition shall be recorded into current profits and losses.
2. Held-to-maturity investments shall be made subsequent measurement at amortized cost using the effective
interest method, the gains and losses from termination of recognition, depreciation or amortization shall be
recorded into current profits.
3. Receivables shall be made subsequent measurement at amortized cost using the effective interest method, the
gains and losses from termination of recognition, depreciation or amortization shall be recorded into current
profits.
4. Available-for-sale financial assets shall be made subsequent measurement at its fair value, the gains and losses
from the change of fair value shall be recorded into capital reserve. Disposal of available-for-sale financial assets,
the difference between consideration received and carrying value of the financial assets included into investment
profits or losses account; at the same time, turn out the disposal amount corresponding to the cumulative amount
of changes in fair value that originally directly recorded into owners’ equity investment, and recorded into
investment profits or losses account. The impairment losses of such financial assets and exchange differences of
foreign monetary financial assets shall be recorded into current profits and losses. Interest received and cash
dividends declared to distribute by the invested company during the holding period of such financial assets shall
be recognized into investment income.
5. Other financial liabilities that connected with and settled by equity instrument, whose price could not be quoted
in active market and the fair value could not be measured reasonably shall be made subsequent measurement by
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cost.
The financial guarantee contract is not belong to financial liabilities designated by the Company to be measured at
fair value and the change in fair value recorded into current profits and losses, as well as the loan commitment is
not belong to financial liabilities designated by the Company to be measured at fair value and the change in fair
value recorded into current profits and losses and for lending at the lower-than-market rate, after initial
recognition, which shall be made subsequent measurement at the higher of ： (a) Amount recognized by <
Enterprise Accounting Standard 13—Contingent events> ； (b) Balance of initial recognition amount after
deducting the accumulated amortization refer to .
Other financial liabilities shall be made subsequent measurement at amortized cost using the effective interest
method, the gains and losses from termination of recognition or amortization shall be recorded into current profits
and losses.
1. Fair value：it refers to the amount, at which both parties to a transaction who are familiar with the condition
exchange their assets or clear off their debts under fair conditions. In a fair transaction, both parties to it shall be
enterprises in continuous operation, and do not plan or do not need to carry out any liquidation, significantly
reduce their operational scale or carry out transactions notwithstanding the unfavorable conditions they face. As
for the financial assets or financial liabilities for which there is an active market, the quoted prices in the active
market shall be used to determine the fair values thereof. If there is no active market, company should adopt
valuation techniques to determine the fair value.
2. The post-amortization cost of a financial asset or financial liability ： it refers the balance of the initially
recognized amount of the financial asset or financial liability after deducting the already paid principal, adding or
deducting the accumulative amount of amortization incurred from amortizing the balance between the initially
recognized amount and the amount of the maturity date by adopting the actual interest rate method, and deducting
the impairment losses that have actually incurred.
3. The actual interest rate method: it refers to the method by which the post-amortization costs and the interest
incomes of different installments or interest expenses are calculated in light of the actual interest rates of the
financial assets or financial liabilities (including a set of financial assets or financial liabilities). The actual 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 applicable term into the current carrying amount of the financial
asset or financial liability. When the actual interest rate is determined, the future cash flow shall be predicted on
the basis of taking into account all the contractual provisions concerning the financial asset or financial liability
(including the right to repay the loan ahead of schedule, call options, similar options and etc.), and the future
credit losses shall not be taken into account.
(3) Recognition basis and measurement of financial asset transfers
(4) Termination of recognition of financial liabilities
① Where a financial asset satisfies any of the following requirements, the recognition of it shall be terminated:
a. Where the contractual rights for collecting the cash flow of the said financial asset are terminated; or
b. Where the financial asset has been transferred and nearly all of the risks and rewards related to the ownership of
the financial asset have been transferred to the transferee; or
c. Where the financial asset has been transferred but the enterprise does not transfer or retain nearly all of the risks
and rewards related to the ownership of a financial asset, and the enterprise gives up its control over the financial
asset.
② If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the Company
recorded the difference between the amounts of the following two items into the current profits and losses:
a. The book value of the transferred financial asset;
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b. The sum of consideration received from the transfer, and the accumulative amount of the changes of the fair
value originally recorded in the owner's equities.
③ If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of
the transferred financial asset shall, between the portion whose recognition has been stopped and the portion
whose recognition has not been stopped, be apportioned according to their respective relative fair value, and the
difference between the amounts of the following two items shall be included into the current profits and losses:
a. The book value of the portion whose recognition has been stopped;
b. The sum of consideration of the portion whose recognition has been stopped, and the portion of the
accumulative amount of the changes in the fair value originally recorded in the owner's equity which is
corresponding to the portion whose recognition has been stopped.
④ If the transfer of partial financial asset doesn’t satisfy the conditions to stop the recognition, the Company
shall continue to recognize the financial assets and recognized the consideration it receives as a financial liability.
For those financial assets transferred by adopting continuous involvement method, the Company should recognize
one financial asset and one financial liability, according to the extent of the transferred financial assets under
continuous involvement.
(5) Determination of the fair value of main financial assets and financial liabilities
(6) Withdrawal of impairment provision for financial assets (excluding accounts receivable)
① If the Company have the following evidence to prove the impairment of financial assets, should recognize the
provision of impairment:
a. A serious financial difficulty occurs to the issuer or debtor;
b. The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of
interests or the principal, etc.;
c. The creditor makes any concession to the debtor which is in financial difficulties due to economic or legal
factors, etc.;
d. The debtor will probably become bankrupt or carry out other financial reorganizations;
e. The financial asset can no longer continue to be traded in the active market due to serious financial difficulties
of the issuer;
f. It is impossible to identify whether the cash flow of a certain asset within a certain combination of financial
assets has decreased or not. But after making an overall appraisal according to the public data available, it is found
that the predicted future cash flow of the said combination of financial assets has indeed decreased since it was
initially recognized and such decrease can be measured.
g. Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc.
wherein the debtor operates its business, which makes the investor of an equity instrument unable to take back its
investment;
h. Where the fair value of the equity instrument investment drops significantly or not contemporarily;
i. Other objective evidences showing the impairment of the financial asset.
② On balance sheet date, the Company should adopt different impairment test method for different category
financial assets, and recognize provision for impairment:
a. Held-to-maturity investments：on the balance sheet date, if there are objective evidence of impairment for the
investment, the Company has recognized the impairment loss by the balance between the asset’s carrying amount
and the present value of estimated future cash flows.
b. Available-for-sale financial assets：on the balance sheet date, the Company analyzes the impairment evidences
of the financial assets, judging whether the fair value of the financial asset continued to decline. Generally, if the
fair value of financial assets had serious decline, after consideration of all relevant factors, anticipating this is
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non-temporary, then identified the available-for-sale financial assets has been impaired, and recognized the
impairment loss. If the fair value of the available-for-sale financial asset has a decline, when recognizing the
impairment losses, the Company shall transferred the accumulated losses from the decrease in fair value that
originally directly recorded in owners’ equity to the assets impairment losses account.
(7) As for event about reclassifying the undue held-to-maturity investment into available-for-sale financial
assets, the Company shall state the basis of changes in holding purpose or ability
10. Recognition criteria and withdrawal methods for bad debts provision of accounts receivable
(1) Bad debt provision for individually significant accounts receivable
Judgement basis or monetary standards of provision for bad debts of
More than RMB 2 million (including 2 million)
the individually significant accounts receivable
When making individual impairment test on accounts
receivable with significant amount, if there is objective
evidence that the accounts receivable have been impaired, the
impairment loss shall be recognized based on the difference
Method of individual provision for bad debts of the individually of the book values higher than the present value of future
significant accounts receivable cash flows, then withdraw the bad debts provision.
If the accounts receivable with significant amount has not
been impaired under the individual test, which shall be
withdrawn the bad debts provision by aging group as the
credit risk group. Please refer to Note II. 10. (2)
(2) Accounts receivable withdrawn bad debts provision by group
Withdrawal method of bad
Name of group debt provision on the group Recognition basis of group
basis
Aging group Aging analysis Age
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts receivable
Age
receivable (%) (%)
Within 1 year (including 1 year)
Of which: within six months 1% 1%
Six months to one year 5% 5%
1-2 years 10% 10%
2-3 years 50% 50%
Over 3 years 100% 100%
3-4 years
4-5 years
Over 5 years
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In the groups, adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Inapplicable
In the groups, adopting other methods to withdraw bad debt provision
□ Applicable √ Inapplicable
(3) Accounts receivable with insignificant amount but being individually withdrawn bad debts provision
Reason for individually withdrawing the bad debts provision:
high credit risk.
Withdrawal method of bad debts provision:
When making individual impairment test on accounts receivable with insignificant amount but high credit risk, the
impairment loss shall be recognized based on the difference of the book values higher than the present value of
future cash flows, then withdraw the bad debts provision.
11. Inventory
(1) Category of inventory:
Inventory of the Company refers to enterprises’ hold-for-sale finished goods or merchandise, product in process,
and materials consumed in the production process or rendering of services, etc. in the daily activities, which
includes material in transit, raw materials, goods in process, merchandise on hand, merchandise issued, entrusted
processing materials and circulating materials, etc.
(2) Pricing method for outgoing inventories
□ First-in first-out method √ Weighted average method □ Specific identification method □ Other
The routine accounting of inventory is calculated by actual cost.
(3) Recognition basis of net realizable value and withdrawal method of falling price provision for inventories:
① Recognition of net realizable value for inventories:
Those inventories of merchandise, such as finished goods, commodities and materials used for directly sale, the
net realizable value is referred to the estimated selling price minus the estimated selling expenses and related tax
and fees in normal operating process. Those inventories of materials needing being processed, the net realizable
value is referred to the estimated selling price of products minus the estimated finished cost and estimated selling
expenses and related tax and fees in normal operating process. The net realizable value of the inventory held to
exercising sales contract or service contract is based on the contract price. If the sales contracts are for less than
the inventory quantities held, the net realizable value of the excess is based on general selling prices.
② Withdrawal method of falling price provision for inventories:
On the balance sheet date, the evaluation criteria should base on the lower value between costs and net realizable
value. When net realizable value is lower than costs, falling price provision of inventories shall be made. Under
normal circumstances, the Company withdraws the falling price provision in according to individual inventory
items, but for large quantity and low-unit-price inventories, falling price provision of inventories shall be made
based on the category of inventories; for those inventories that relating to the same product line that have similar
purposes or end uses, are produced and marketed in the same geographical area, and cannot be practicably
evaluated separately from other items in that product line, their falling price provision of inventories shall be
consolidated.
After withdrawing the depreciation reserves for inventories, if the factors, which cause any write-down of the
inventories, have disappeared, the amount of write-down shall be recovered and reversed from the original
amount of depreciation reserve for inventories. The reversed amount shall be included in the profits and losses of
the current period.
(4) Inventory system for inventories
√ Perpetual inventory system □ Periodic inventory system □ Other
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The inventory system for inventories is perpetual inventory system..
(5) Amortization method of the low-value consumption goods and packing articles
Low-value consumption goods
Amortisation method: one-off amortization method
Packing articles
Amortisation method: one-off amortization method
12. Long-term equity investment
(1) Recognition of initial investment costs
The Company separates the following two cases of long-term equity investment in the measurement:
① Long-term equity investment obtained through business combinations:
a. For obtaining subsidiary under common control, the consideration cost can be paid by cash payment,
non-monetary assets transfer or taking over the subsidiary’s liability. Under this situation, the investment cost is
carrying amount of owners’ equity of the subsidiary on the merger date. The difference between the carrying
amount of the net assets obtained and investment cost of long-term equity investment shall be adjusted to capital
reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against
retained earnings. In the case of company issues equity securities as the consideration, the investment cost is
carrying amount of owners’ equity of the subsidiary on the merger date. If the book value amount of the issued
shares is deemed as the capital, the difference between the carrying amount of the issued shares and investment
cost of long-term equity investment shall be adjusted to capital reserve. If the capital reserve is not sufficient to
absorb the difference, any excess shall be adjusted against retained earnings. All direct expenses related to the
merger, including the auditor fee, evaluation expense, legal service expense, etc will be accrued
to the current profit and loss.
b. For obtaining subsidiary not under common control, the cost of long-term equity investment is fair value of
assets paid, liabilities undertaken by the Company, or the fair value of equity bonds issued. Where the cost of a
business combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the
difference shall be recognized as goodwill, Where the cost of combination is less than the acquirer’s interest in
the fair value of the acquiree’s identifiable net assets, after reassessment, the difference shall be recognized in
profit or loss for the current period (non-operating income). The costs related to business combinations, including
the commission fees for audit, law services, assessment & consultancy services and other relevant expenses
occurred in the business combination by the combining party, shall be recorded into current profits and losses
upon their occurrence; the transaction expense from the issuance of equity securities or bonds securities which are
as consideration for combination by the combining party, should be recorded as the initial amount of equity
securities and bonds securities.
For business combination not under the same control realized by two or more transactions of exchange, which
was implemented relevant accounting treatment by separating the individual financial statement and consolidated
financial statement:
(I) In the individual financial statement, the investment cost was the sum of the book value of such equity
investment of acquiree before the purchasing date and the newly added investment cost on the purchasing date;
while if the equity of acquiree held before purchasing date involves any other comprehensive income, which shall
be transferred into current investment income together with other relevant comprehensive income (i.e. the change
in the fair value of available-for-sale financial assets transferred to capital reserves, the same below) when
disposing such investment.
(II) In the consolidated financial statement, the equity of acquiree held before purchasing date shall be
re-measured at the fair value of such equity on the purchasing date, and the balance between its fair value and
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book value shall be recorded into current investment income; while if the equity of acquiree held before
purchasing date involves any other comprehensive income, which shall be transferred into current investment
income together with other relevant comprehensive income. The acquirer shall disclose its amounts of the fair
value of equity of acquiree held before purchasing date, relevant profits or losses from the re-measurement at the
fair value in the notes to financial statement.
② Except for the long-term equity investments formed by the merger of enterprises, the initial cost of a long-term
equity investment obtained by other means shall be ascertained in accordance with the provisions as follows:
a. The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost
which is actually paid. The investment cost consists of the expenses directly relevant to the obtainment of the
long-term equity investment, taxes and other necessary expenses. But if the actual payment contains cash dividend
that has not been received but has been announced, that should be accounted as receivable items separately.
b. The investment cost of a long-term equity investment obtained on the basis of issuing equity securities shall be
the fair value of the equity securities issued.
c. Long-term equity investment made by the investors, the values agreed in the investment contracts or
agreements will be deemed as the initial investment cost, except that the contracts or agreements provide that the
values are not fair.
d. Long-term equity investment is acquired by exchange of non-monetary assets, if this transaction has
commercial substance or the fair values of exchange assets can be reliably measured, the fair values of these
assets and relevant taxes will be deemed as the investment cost; the difference between the fair values of the
assets and book values will be record into the current profit and loss; if the non-currency asset exchange does not
satisfy these two conditions mention above, the book values of the assets and relevant taxes will be deemed as
the investment cost.
e. Long-term equity investment, which is acquired by the debt restructuring, the fair values of the obtained
equities will be deemed as the investment cost; the difference between the investment cost and book values of
credit will be record into the current profit and loss.
(2) Subsequent measurement and recognition of gains or losses
The cost method is employed to calculate the long-term equity investment of subsidiaries and will be adjusted in
accordance with the equity method in the preparation of the consolidated financial statements.
The Company uses cost method for the following conditions: a long-term equity investment where the investing
enterprise does not have joint control or significant influence over the investee, the investment can’t be quoted in
an active market and its fair value can’t be reliably measured.
The Company uses equity method for the following conditions: a long-term equity investment where the investing
enterprise has joint control or significant influence over the investee.
a. When using cost method, increase or recovery of investment need to adjust the cost of long term equity
investment. When gaining cash dividends or profit distributions declared by the investee, the return on investment
at current period shall be recognized in accordance with the cash dividend or profit announced to distribute by the
invested entity, except the announced but not distributed cash dividend or profit included in the actual payment or
consideration upon gaining the investment.
b. When measured by adopting equity method, the investment profits or losses at current period shall be the
attributable share of the net profits or losses of the investee, and adjust the carrying amount of the investment
accordingly.
The Company shall recognize current period investment profits or losses following the attributable share of the net
profits or losses of the investee. When recognizing the attributable share of the net profits or losses of the investee,
basing on the investee’s book value of net profit, if the investee used inconsistent accounting policies with the
Company, the Company shall withdraw the depreciation amount and amortization amount basing on the fair value
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of fixed assets and intangible assets of the investee on the investment acquired date, and the Company shall adjust
the affected net profits of the investee with the recognized amount of impairment provision of fixed assets basing
on the fair value of relevant assets on the investment acquired date, and offset the internal transaction profit and
loss between the Company and the joint enterprises or the jointly-run enterprises, and then recognize the
investment profit or loss on this basis. The internal transaction profit and loss between the Company and the joint
enterprises or the jointly-run enterprises, refer to the < Enterprise Accounting Standard 8--Impairment of assets>,
belong to asset impairment loss, and recognized in full.
The Company shall recognize the net losses of the invested enterprise until the book value of the long-term equity
investment and other long-term rights and interests which substantially form the net investment made to the
invested entity are reduced to zero (unless the investing enterprise has the obligation to undertake extra losses). If
the invested entity realizes any net profits later, the investing enterprise shall, after the amount of its attributable
share of profits exceeding its attributable share of the un-recognized losses, resume the book value of the
long-term equity and long-term investment according to attributable un-recognized losses.
Those long term equity investment on joint venture and associate company held before first executive date, if their
is relevant investment debit difference, according to residual time to amortize in straight line method, and the
amortization amount shall be recognized in current profits and losses account.
(3) Recognition basis of joint control and significant influences on investee
① The existence of jointly control on investee is usually evidenced in one or more of the following ways: A. any
joint venture cannot control the jointly controlled company’s operation alone; B. the strategy decision of the
jointly controlled company, should be agreed by each venture parties; C. the venture parties may appoint one of
them to manage the daily activities of the joint venture, but executing the management right in the scope of
financial and operation strategies unanimously agreed by the venturers. When the investee is under legal
reconstruction or bankrupt, or the ability of transferring funds to investors strictly restricted in long time, the
venturers cannot exercise joint control to the investee generally. However, if the existence of joint control can be
proved, the venturers still adopt equity method of long term equity investment principle to account.
② The existence of significant influence by an investor is usually evidenced in one or more of the following
ways: A. representation on the board of directors or equivalent governing body of the investee; B. participation in
policy-making processes, including participation in decisions about dividends or other distributions; C. material
transactions between the investor and the investee; D. dispatch of managerial personnel; or E. provision of
essential technical information.
(4) Impairment test method and withdrawal method of impairment provision
On the balance sheet date, the Company shall assess the long term equity investment one by one, according to the
investee’s operation strategy, legal environment, market demand, industry and profitability etc, to decide whether
there are impairment indicators. When the recoverable amount of long term equity investment is lower than its
book value, the differences should be recognized as provision for impairment. Once the impairment loss was
recognized, it shall never be reversed in the future accounting periods.
13. Investment property
Investment property is held to earn rentals or for capital appreciation or for both. Investment property includes
leased or ready to transfer after capital appreciation land use rights and leased buildings.
(1) The depreciation and amortization method for investment property by adopting cost model
The Company’s all investment properties are subsequently measured by adopting cost model. The Company
withdrew depreciation or amortization on the use right of building and land according to its expected useful life
and net residual rate. The expected useful life, net residual rate and annual depreciation rate of Company’s
investment property as follow:
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Expected residual rate Annual depreciation
Categories Expected useful life
(%) (amortization) rate (%)
Houses and buildings 3-5 8-35 years 2.7-12.1
Land use rights 0 50 years 2
(2) Withdrawal basis of impairment provision for investment property by adopting cost model
On the balance sheet date, the evaluation criteria should base on the lower one between book value and
recoverable amount. If the recoverable amount is lower than the book value, the difference of which shall be the
impairment provision. If the value of the impaired investment property recovered, the withdrawn impairment loss
in prior period cannot be reversed.
14. Fixed assets
(1) Recognition of fixed assets:
Fixed assets refer to high-unit-value tangible assets held for production of goods or rendering of services, rental,
or operation purpose as well as useful lives more than one accounting year. Fixed assets shall be recognized by
actual costs incurred, if they meet the following conditions:
1. The economic benefits related to fixed asset probably flows to the enterprise;
2. The cost of fixed asset may be reliably measured.
The subsequent expenses related with the fixed asset, if they meet the above recognition condition to fixed asset,
which would be recorded in the cost of fixed asset, otherwise, they would be recorded into current profits and
losses upon occurrence.
(2) Recognition basis and pricing method of fixed assets by finance lease
The Company recognized a lease that has transferred in substance all the risks and rewards related to the
ownership of an asset as finance lease. The cost of fixed asset acquired by finance lease shall be recognized by the
lower one between the fair value of the asset on the inception date of such finance lease and the current value of
the lowest rental. The fixed assets by finance lease shall adopt the same depreciation policy for self-owned fixed
assets to withdraw the depreciation of leased assets. If it is reasonable to be certain that the lessee will obtain the
ownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated over its
useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the leased asset at the
expiry of te lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or its
useful life.
(3) The depreciation method of fixed assets
Straight-line method is in used to calculate the depreciation of fixed assets.
The categories Estimated useful life (years) Residual value (%) Annual depreciation rate (%)
Houses and buildings 8-35 3-5 2.7-12.1
Machineries 8-10 3-5 9.7-12.1
Electronic equipment 3 3 32.33
Vehicles 4 3 24.25
Other equipments 3 3 32.33
Fixed assets acquired under
-- -- --
finance lease
Of which: houses and buildings
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Machineries
Electronic equipment
Vehicles
Other equipments
(4) Impairment test method and withdrawal method of provision for impairment on fixed assets
On the balance sheet date, the Company assess all types of fixed assets whether there is any indication that an
asset may be impaired, where the recoverable amount is lower than its carrying value, the carrying value of the
asset shall be recorded down to the recoverable amount, and the reduced amount shall be recognized as the loss of
asset impairment and be recorded as the profit or loss for the current period. Simultaneously, a provision for the
asset impairment shall be made accordingly. Once any loss of asset impairment is recognized, it shall not be
switched back in the future accounting periods. There may be an impairment of fixed assets when one of the
following signs occurs:
1. The current market price of assets falls, and its decrease is obviously higher than the expected drop over time or
due to the normal use;
2. The economic, technological or legal environment in which the enterprise operates, or the market where the
assets is situated will have any significant change in the current period or in the near future, which will cause
adverse impact on the enterprise;
3. The market interest rate or any other market investment return rate has risen in the current period, and thus the
discount rate of the enterprise for calculating the expected future cash flow of the assets will be affected, which
will result in great decline of the recoverable amount of the assets;
4. Any evidence shows that the assets have become obsolete or have been damaged substantially;
5. The assets have been or will be left unused, or terminated for use, or disposed ahead of schedule;
6. Any evidence in the internal report of the enterprise shows that the economic performance of the assets have
been or will be lower than the expected performance, for example, the net cash flow created by assets or the
operating profit (or loss) realized is lower than the excepted amount, etc.; and
7. Other evidence indicates that the impairment of assets has probably occurred.
(5) Other explanations
15. Construction in progress
(1) Categories of construction in progress
The construction in progress shall be classified by the approved project.
(2) The standard and time point of the construction in progress transferred to fixed assets
Construction in progress is transferred to fixed assets by actual cost of construction when the project is
substantially ready for its intended use. The project is in condition of ready for used but not handled the final
account would be transferred to fixed assets in its estimate value firstly, and adjust the temporary estimated value
after handling the final account, but would not adjust depreciated value that have been depreciated.
(3) Method of impairment test and provision for impairment loss of construction in progress:
On the balance sheet date, the Company shall assess the overall construction in progress, if there is evidence
providing that the value of project was impaired, the carrying value of the asset shall be recorded down to the
recoverable amount, and the reduced amount shall be recognized as the loss of asset impairment and be recorded
as the profit or loss for the current period. Simultaneously, a provision for the asset impairment shall be made
accordingly. Once any loss of asset impairment is recognized, it shall not be switched back in the future
accounting periods. The construction in progress shall be made impairment test if one or more of the following
situation existed:
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1. The project has been suspended for a long time, and it is expected to resume within the next 3 years;
2. The project has fallen behind no matter in function or technology, which has brought significant uncertainty to
the economic benefits of the enterprise;
3. Other evidence indicates that the impairment of the project has probably occurred.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization, which shall not be capitalized and recorded into the
costs of relevant assets unless they simultaneously meet the following requirements:
① The capital expenditures have been incurred.
② The borrowing costs have been incurred.
③ The acquisition and construction or production activities which are necessary to prepare the asset for its
intended use or sale have already started.
Other borrowing costs, discount or premium and difference of foreign exchange, should be recognized in the
current profit and loss account.
(2) Capitalization period of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the
capitalization of the borrowing costs shall be ceased. Borrowing costs should be recognized as an expense in the
subsequent period.
(3) Period for ceasing capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the
capitalization of the borrowing costs shall be ceased. Borrowing costs should be recognized as an expense in the
subsequent period.
(4) Calculation method of capitalized amount of borrowing costs
As for specifically borrowed loans for the acquisition and construction or production of assets eligible for
capitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of
the specially borrowed loan at the present period minus the income of interests earned on the unused borrowing
loans as a deposit in the bank or as a temporary investment.
Where a general borrowing is used for the acquisition and construction or production of assets eligible for
capitalization, the enterprise shall calculate and determine the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing used.
17. Biological assets
Naught
18. Oil-gas assets
Naught
19. Intangible assets
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(1) Pricing method of intangible assets
Intangible asset are recognize initially at cost.
(2) Estimated useful life of intangible assets with limited useful life
Intangible asset is judged by the comprehensive factors, such as its contractual right, condition in same industry,
history experience, and demonstration of expert, etc., if the result shows that it can bring future economic benefit
inflow to company, which can be recognized as finite useful life assets. Otherwise, the asset would be recognized
as infinite useful life assets.
① To estimate the useful life of finite useful life asset need consider the following factors: A. The life cycle of the
product produced by the assets, and the information of similar asset; B. The current situation of craftwork and
technology, and the estimate of future development trend; C. The market demand of the product produced by the
asset; D. The estimated action would be taken by competitor or potential competitor; E. The expense expected to
maintain the assets to bring future economic benefits and the ability of the Company to pay for it; F. The relevant
law restriction on control period of the asset or other similar restriction such as franchise, lease period; G. Relation
with other assets’ useful life that held by the Company.
② The intangible asset with finite useful years should be amortization on a systematic and rational basic
according its economic benefit achievement plan. A straight line method would be used if the plan could not
define.
Item Estimated useful life Basis
(3) Judgment basis of intangible assets with uncertain useful life
The Company shall check the useful life of intangible assets with uncertain useful life during each accounting
period, if the result shows that the useful life is still uncertain, which shall be implemented the impairment test on
the balance sheet date.
(4) Withdrawal of impairment provision of intangible assets
The Company shall check the useful life of intangible assets with uncertain useful life during each accounting
period, if the result shows that the useful life is still uncertain, which shall be implemented the impairment test on
the balance sheet date. The intangible asset's recoverable amount is lower than its carrying value, the carrying
value of the asset shall be recorded down to the recoverable amount, and the reduced amount shall be recognized
as the loss of asset impairment and be recorded as the profit or loss for the current period. Simultaneously, a
provision for the asset impairment shall be made accordingly. Once any loss of asset impairment is recognized, it
shall not be switched back in the future accounting periods. Impairment test for intangible assets shall be
implemented if one or more the following conditions met:
A. The intangible asset has been replaced by other new technology, which caused significant adverse effect on its
profitability.
B. The market value has declined in current period, and may not rise in the future residual period;
C. Other indication to prove that the carrying value higher than the recoverable value.
(5) The criterion to divide the research stage and the development stage of internal research and development
project:
The expenditures on research stage for internal research and development project shall be recorded in current
profits and losses upon their occurrence. The expenditures on research stage for internal research and development
project shall not be recognized as an intangible asset unless it meets the following conditions simultaneously: ①It
is feasible technically to finish intangible assets for use or sale; ② It is intended to finish and use or sell the
intangible assets; ③ The usefulness of methods for intangible assets to generate economic benefits shall be
proved, including being able to prove that there is a potential market for the products manufactured by applying
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the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be
used internally; ④ It is able to finish the development of the intangible assets, and able to use or sell the
intangible assets, with the support of sufficient technologies, financial resources and other resources; and ⑤ The
development expenditures of the intangible assets can be reliably measured.
(6) Calculation of the expenditures of internal R&D project
The expenditures on research stage for internal research and development project shall be recorded in current
profits and losses upon their occurrence. The expenditures on research stage for internal research and development
project shall not be recognized as an intangible asset unless it meets the following conditions simultaneously: ①It
is feasible technically to finish intangible assets for use or sale; ② It is intended to finish and use or sell the
intangible assets; ③ The usefulness of methods for intangible assets to generate economic benefits shall be
proved, including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be
used internally; ④ It is able to finish the development of the intangible assets, and able to use or sell the
intangible assets, with the support of sufficient technologies, financial resources and other resources; and ⑤ The
development expenditures of the intangible assets can be reliably measured.
20. Long-term deferred expenses
Long-term deferred expenses refer to general expenses with the apportioned period over one year (one year
excluded) that have occurred but attributable to the current and future periods. Long-term deferred expense shall
be recoded into book in the light of the actual expenditure, and amortized averagely within benefit period.
21. Assets transfer with repurchasing conditions
Naught
22. Estimated liabilities
(1) Recognition criteria of estimated liabilities
The obligation such as external guaranty, pending litigation or arbitration, product quality assurance, layoff plan,
loss contract, restructuring and disposal of fixed assets, pertinent to a contingencies shall be recognized as an
estimated liabilities when the following conditions are satisfied simultaneously:
① That obligation is a current obligation of the Company;
② It is likely to cause any economic benefit to flow out of the Company as a result of performance of the
obligation; and
③ The amount of the obligation can be measured in a reliable way.
Loss contracts and reorganization obligations of the Company shall be recognized as accrued liabilities when the
above conditions are satisfied simultaneously.
(2) Measurement of estimated liabilities
The estimated liabilities shall be initially measured in accordance with the best estimate of the necessary expenses
for the performance of the current obligation. To determine the best estimate, the Company shall take into full
consideration of the risks, uncertainty, time value of money, and other factors pertinent to the Contingencies. If the
time value of money is of great significance, the best estimate shall be determined after discounting the relevant
future outflow of cash. On balance sheet date, check the carry amount of accrued liabilities, and make adjustment
to carry amount to reflect the optimum evaluation. The increase amount in carry amount of accrued liabilities
cause by time process would be determined as interest fee.
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23. Share-based payment and equity instruments
(1) Categories of share-based payment
The types of shares-based payment of the Company are: cash-settle and equity-settle.
①Cash-settled share-based payment
The measurement of cash-settle is according with the fair value of liability undertake by the Company, which is
calculated base on the Company’s share or other equity instrument.
The value of cash-settle share-based payment that could exercise immediately after award would be reckoned to
relate cost or expense, and increase liability corresponds to it.
At each balance sheet date, a best estimated of situation of exercise cash-settled right that with waiting-period
should be undertaken, and reckon cost or expense and increase liability which is on the base of service award by
the Company, according to the fair value of company’s liability.
② Equity-settled share-based payment
The measurement is base on the fair value of the equity instrument granted to employees.
The value of equity-settled payment that could be exercised immediately after award would be reckoned in relates
cost and expense and increase capital reserves corresponds to it..
On each balance sheet date, a best estimated of amount of exercise equity-settled that with waiting-period should
be undertaken, and reckon in cost or expense and capital reserves which is on the base of service award by the
Company, according to the fair value of company’s liability.
(2) Recognition method of the fair value of equity instruments
① For those shares granted to employees shall measure the fair value of equity instruments granted at the
measurement date, based on market prices if available, simultaneously, taking into account the terms and
conditions (exclude the vesting conditions of external market) upon which those equity instruments were
granted.
② For those share options granted to employees, the market prices are not available in most circumstance. If there
are no clauses and requirements of others similar trading options, the Company shall estimate the fair value of the
share option granted using a valuation technique.
(3) Recognition basis of the best estimate of vesting equity instrument:
On each balance sheet date of waiting-period, the Company shall recognize an amount for the equity instrument
during the vesting period based on the best available estimate of the number of equity instruments expected to vest
and shall revise that estimate, if necessary, if subsequent information indicates that the number of equity
instruments expected to vest differs from previous estimates.
(4) Accounting treatment of share-based payment plan:
1. As to a cash-settled share-based payment instruments, if the right may be exercised immediately after the grant,
the fair value of the liability undertaken by the Company shall, on the date of the grant, be included in the relevant
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costs or expenses, and the liabilities shall be increased accordingly. Re-measure the fair value of liabilities on
every balance sheet date and settlement date before settlement, and record the change of fair value into profits and
losses.
2. As to a cash-settled share-based payment, if the right may not be exercised until the vesting period comes to an
end or until the specified performance conditions are met, on each balance sheet date within the vesting period,
the services obtained in the current period shall, based on the best estimate of the information about the
exercisable right, be included in the relevant costs or expenses and the corresponding liabilities at the fair value of
the liability undertaken by the Company
3. As to an equity-settled share-based payment in return for services of employees, if the right may be exercised
immediately after the grant, the fair value of the equity instruments shall, on the date of the grant, be included in
the relevant cost or expense and the capital reserves shall be increased accordingly.
4. As to a equity-settled share-based payment in return for employee services, if the right cannot be exercised until
the vesting period comes to an end or until the prescribed performance conditions are met, then on each balance
sheet date within the vesting period, the services obtained in the current period shall, based on the best estimate of
the number of vested equity instruments, be included in the relevant costs or expenses and the capital reserves at
the fair value of the equities instruments on the date of the grant.
24. Repurchase of shares of the Company
Naught
25. Revenue
(1) Criteria for recognition time of revenue from sale of goods
No revenue shall be realized unless the following conditions are met simultaneously:
① The significant risks and rewards of ownership of the goods have been transferred to the buyer by the
Company;
② The Company retains neither continuous management right that usually keeps relation with the ownership nor
effective control over the sold goods;
③ The relevant amount of revenue can be measured in a reliable way;
④ The relevant economic benefits may flow into the enterprise; and
⑤ The relevant costs incurred or to be incurred can be measured in a reliable way.
(2) Recognition basis of revenue from transferring use rights of assets
The revenue from abalienating of right to use assets consists of interest revenue and royalty revenue, which may
not be recognized unless the following conditions are met simultaneously:
①The relevant economic benefits are likely to flow into the enterprise; and
② The amount of revenues can be measured in a reliable way.
The amount of interest revenue should be measured and confirmed in accordance with the length of time for
which the enterprise's cash is used by others and the actual interest rate; or
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The amount of royalty revenue should be measured and confirmed in accordance with the period and method of
charging as stipulated in the relevant contract or agreement.
(3) Recognition basis and method for the schedule of contracted project when recognizing the revenue from
providing labour services and construction contract by percentage-of-completion method
①If the Company can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning
the labor services it provides, it shall recognize the revenue from providing services employing the
percentage-of-completion method. The term "percentage-of-completion method" refers to a method to recognize
the revenues and expenses in the light of the stage of completion under a transaction concerning the providing of
labor services
The outcome of a transaction concerning the providing of labor services can be measured in a reliable way, means
that the following conditions shall be met simultaneously:
a. The amount of revenue can be measured in a reliable way;
b. The relevant economic benefits are likely to flow into the enterprise;
c. The schedule of completion under the transaction can be confirmed in a reliable way; and
d. The costs incurred or to be incurred in the transaction can be measured in a reliable way.
② If the Company can not, on the date of the balance sheet, measure the result of a transaction concerning the
providing of labor services in a reliable way, it shall be conducted in accordance with the following circumstances,
respectively:
a. If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor
services shall be recognized in accordance with the amount of the cost of labor services incurred, and the cost of
labor services shall be carried forward at the same amount; or
b. If the cost of labor services incurred is not expected to compensate, the cost incurred should be included in the
current profits and losses, and no revenue from the providing of labor services may be recognized.
26. Government grants
(1) Types
①The Company can meet the conditions for the government subsidies; and ②The Company can obtain the
government subsidies.
(2) Accounting treatment method
① A government grant related to an asset shall be recognized as deferred income, when the assets is substantially
ready for its intended use, evenly amortized to profit and loss over the useful lives of the related asset.
Unamortized amount would be one-off recognized in profit and loss account when the asset is sold, transferred,
discarded or damaged before its useful life.
② The government subsidies pertinent to incomes shall be treated respectively in accordance with the
circumstances as follows: (a) Those subsidies used for compensating the related future expenses or losses of the
enterprise shall be recognized as deferred income and shall included in the current profits and losses during the
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period when the relevant expenses are recognized; or (b) Those subsidies used for compensating the related
expenses or losses incurred to the enterprise shall be directly included in the current profits and losses.
27. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
① The Company recognize the deferred income tax liability arising from a deductible temporary difference to the
extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the
deductible temporary difference. However, it shall not recognize the deferred income tax assets arising from the
initial recognition of assets or liabilities in a transaction which is simultaneously featured by the following:
a. This transaction is not business combination; and
b. At the time of transaction, the accounting profits will not be affected, nor will the taxable amount (or the
deductible losses) be affected.
② For the deductible temporary difference relating to the investments of the subsidiary companies, associated
enterprises and joint enterprises, the enterprise shall recognize the corresponding deferred income tax assets for
those that meet the following requirements:
a. The temporary differences are likely to be reversed in the expected future; and
b. It is likely to acquire any amount of taxable income that may be used for deducting the deductible temporary
differences.
③ For any deductible loss or tax deduction that can be carried forward to the next year, the corresponding
deferred income tax asset shall be determined to the extent that the amount of future taxable income to be offset
by the deductible loss or tax deduction to be likely obtained.
(2) Recognition basis of deferred income tax liabilities
Except for the deferred income tax liabilities arising from the following transactions, an enterprise shall recognize
the deferred income tax liabilities arising from all taxable temporary differences:
① The initial recognition of business reputation;
② The initial recognition of assets or liabilities arising from the following transactions which are simultaneously
featured by the following:
a. The transaction is not business combination;
b. At the time of transaction, the accounting profits will not be affected, nor will the taxable amount (or the
deductible losses) be affected.
③ The taxable temporary differences relating to the investments of subsidiary companies, associated enterprises
and joint enterprises shall recognized as corresponding deferred income tax liabilities, however, excluding those
that simultaneously satisfy the following conditions:
a. The investing enterprise can control the time of the reverse of temporary differences; and
b. The temporary differences are unlikely to reverse in the excepted future.
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28. Operating lease and finance lease
(1) Accounting treatments of operating lease
① When the Company as the Lessee under operating lease, the rents from operating leases shall be recorded by
the lessee in the profits and losses of the current period by using the straight-line method over each period of the
lease term or in accordance with the using amount of leased assets. Initial direct expense undertaken by the
Company, recognized to the management expenses, contingent rental incurred recognized as current expenses. If
the lease contract including a rent-free period, the Company shall amortize the overall rent expenses on a
straight-line basis over the whole lease period, during the rent-free period recognize lease expenses and liability
correspond to it. If the lessee’s expenses paid by the lessor, the Company shall be reduce this expenses from the
total rent expenses, and amortize the balance.
② When the Company as the lessor under operating lease, lease income from operating leases shall be recognized
in income on a straight-line basis over the lease term. The initial costs, recognized to the current profit and loss
account. However, if the amount is large, the lease income shall be capitalized, and recognized in current profits
and losses over the lease term on installment on the same basis as the lease income. The contingent lease income
shall be recorded into current income upon the occurrence if it is stipulated in the agreement. If the lease contract
including a rent-free period, the Company shall recognize the total lease income for the whole lease period (not
deducting the rent-free period), and distribute by adopting straight line method or other methods, and the lessor’ s
lease income is also recognized during the rent-free period. If the Company paid some lessee’s expenses, the
Company shall amortize the income balance (total lease income deduct the expenses) during lease period.
(2) Accounting treatments of finance lease
① On the lease beginning date, a lessee shall record the lower one of the fair value of the leased asset and the
present value of the minimum lease payments on the lease beginning date as the entering value in an account,
recognize the amount of the minimum lease payments as the entering value in an account of long-term account
payable, and treat the balance between the recorded amount of the leased asset and the long-term account payable
as unrecognized financing charges. The unrecognized financing charges should be recorded into current financing
charges measured by adopting effective interest method during the lease period, and recorded into current
financial expense. The direct initial expense shall be recorded into value of rented assets..
The depreciation policy for depreciable leased assets shall be consistent with that for depreciable assets that are
owned, the depreciation period according to the lease period. If there is reasonable certainty that the lessee will
obtain ownership by the end of the lease term, the assets shall be depreciated over its useful life. If there is no
reasonable certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be fully
depreciated over the shorter of the lease term and its useful life
② When the Company as the lessor under finance lease, on the beginning date of the lease term, a lessor shall
recognize the sum of the minimum lease receipts on the lease beginning date and the initial direct costs as the
entering value in an account of the financing lease values receivable, and recorded into the long-term accounts
receivable in the balance sheet, and record the unguaranteed residual value at the same time. The balance between
the sums of the minimum lease receipts, the initial direct costs and the unguaranteed residual value, and the sum
of their present values shall be recognized as unrealized financing income. The unrealized financing income
should be recorded into lease income measured by adopting effective interest method during the lease period, and
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recorded into income from other business.
29. Assets held for sale
(1) Recognition criteria of available-for-sale assets
Recognition criterion of assets held for sale
An entity shall classify a non-current asset as held for sale if when all the following conditions are satisfied:
① The Company has made a decision on disposing such non-current assets;
② The Company has entered into a irreversible transfer agreement with buyer;
③ The transfer will be completed within one year.
(2) Accounting treatments of the assets held for sale
For those assets held for sale, the Company shall adjust the assets’ estimated net residual value, let the amount can
reflect the fair value after deducting costs to sell, but not in excess of the original carrying amount of the fixed
assets, the balance of estimated net residual value after adjustment and the original carrying amount, shall be
recognized as assets impairment loss to be recorded into current profit and loss account.
An asset or an disposal group was classified as held for sale before, but if it couldn’t meet the recognition
conditions for held-for-sale fixed asset later, the Company shall cease to classify it as held for sale, and measure it
by the lower amount of the followings:
① Its carrying amount before the asset (or disposal group) was classified as held for sale, adjusted for any
depreciation, amortization or impairment before the asset (or disposal group) being classified as held for sale; or
② Its recoverable amount on the date of the subsequent decision not to sell.
30. Capitalization of assets business
Naught
31. Hedging accounting
Naught
32. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the reporting period?
√Yes □No □Inapplicable
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(1) Change of accounting policies
Were the main accounting policies changed during the reporting period?
√Yes □No □Inapplicable
(2) Change of accounting estimates
Were the main accounting estimates changed during the reporting period?
√Yes □No □Inapplicable
1. Date of change: 1 Jan. 2012
2. Reason for change: with an aim to unified and specified management and accounting rules of fixed assets, and
revealing a more objective and fair conditions of depreciation of fixed assets of the Company, as well as refelcting
the prudence principle of accounting, the Company planned to change depreciation term of fixed assets since 1
Jan. 2012.
3. Accounting estimates before change of fixed assets
Category Estimated useful life and annual depreciation ratio and residual rate
House and buildings: 8-35years 2.70%-12.1%, 3%-5%
Machinery equipments: 8-10years 9.70%-12.10%, 3%-5%
Vehicles: 8years 12.10%, 3%
Official equipments and other: 8years 12.10%, 3%
4. Accounting estimates after change of fixed assets
Category Estimated useful life and annual depreciation ratio and residual rate
House and buildings: 8-35years 2.70%-12.1%, 3%-5%
Machinery equipments: 8-10years 9.70%-12.10%, 3%-5%
Vehicles: 4years 24.25%, 3%
Official equipments and other:3years 32.33%, 3%
5. Effect of this change of accounting estimate on the Company
In accordance with relevant regulations of Corporate Accounting Standard, the above mentioned change is applicable to adopted
prospective application method and it started to conducted on 1 Jan. 2012. There was no need to make retrospectic adjustment to
financial data of previous fiscal years. Subsequent to the change of the above accounting estimate of fixed assets, it is estimated that
net profit of the Company will reduced about RMB3.0908 million in the prospective period, and reduced about RMB3.0908 million
of all shareholders’ equity.
Specific notes:
Unit: RMB Yuan
Content of change in accounting estimates and Name of influence
Approval procedure Influence amount
reason items in statement
For unity and refinement of the management of
fixed assets and the accounting rules, more
Company of the sixth session of The classification
objective and fair response company fixed
the board of directors of the Eig of fixed assets est 3,090,800.00
assets depreciation, embody the prudent
hth conference imated useful life
accounting principles, the company from
January 1, 2012 to change the period of
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depreciation of fixed assets
33. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the reporting period?
□Yes √No □Inapplicable
(1) Retrospective restatement method
Was any previous accounting errors adopting retrospective restatement method discovered in the reporting period?
□Yes √No □Inapplicable
(2) Prospective application method
Was any previous accounting errors adopting prospective application method discovered in the reporting period?
□Yes √No □Inapplicable
34. Other main accounting policies, accounting estimates as well as compilation method of financial
statements
Naught
(Ⅴ) Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
VAT Sale of product and raw material 17% 、13%
From the price of 20%, from 0.5 yuan /
kg ( 500ml ) commissioned processing
taxable liquor, in accordance with the
Sales amount and quantity of taxable
Consumption tax trustee 's similar liquor sales price for tax
product
computation; no similar liquor sales
price, according to the composite
assessable price for tax computation
Business Tax Business turnover 3% 、 5%
Urban maintenance and construction tax Taxable turnover amount 5% 、 7%
Enterprise income tax Taxable turnover amount 2% 、5%
Education expenses surcharge Taxable turnover amount 3%
Local education surcharge Taxable turnover amount 2%
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The income tax rates adopted by each subsidiary and branch factory
2. Tax preference and official documents
3. Other explanation
Distilled spirit consigned for process was taxed in accordance with selling price of similar kind of distilled spirit of entrusting party.
As for those without selling price of similar kind, taxed according to the composite assessable value.
(Ⅵ) Business combination and consolidated financial statements
General instruction of business combination and consolidated financial statements:
1. Subsidiaries
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(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
Balance of
parent
company’s
equity after
deducting
Actual the
The The
amount of Other Included in Deductible difference
Registered Business Registered Business proportion proportion Minority
Subsidiaries Type Currency investments essential consolidated minority that loss of
place nature capital scope of holding of voting interest
at the investment statement interests minority
shares(%) rights(%)
period-end interests
exceed
equity
obtained by
minority
shareholders
Bozhou Wholesales
Gujing of distilled
Sales Co., spirit,
Ltd 84,860,000. construction 84,860,000.
CNY 0.00 100% 100% Yes 0.00 0.00 0.00
(hereinafter 00 materials, 00
refer to as feeds and
Gujing Limited Bozhou, Business assistant
Sales) company Anhui trading materials
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Hefei Department
Gujing stores, wine,
Trade Co., hardware,
Ltd Hefei, Business 10,000,000. and 10,000,000.
CNY 0.00 100% 100% Yes 0.00 0.00 0.00
(hereinafter Anhui trading 00 wholesale 00
refer to as of
“Hefei Limited construction
Trade”) company materials
Bozhou
Gujing
Transportati
Transportati
on Co., Ltd
Bozhou,An Transportatio 6,950,000.0 on, sales 6,950,000.0
(hereinafter CNY 0.00 100% 100% Yes 0.00 0.00 0.00
hui n 0 and repair 0
refer to as
service
“Gujing
Transportati Limited
on”) company
Bozhou
Gujing
Glass Co., Manufactur
Ltd Bozhou,An Manufactur 86,660,000. e and sale of 86,660,000.
CNY 0.00 100% 100% Yes 0.00 0.00 0.00
(hereinafter hui e 00 glass 00
refer to as products
“Gujing Limited
Glass”) company
Bozhou Limited Bozhou,An Wasteecycle 1,000,000.0 Collect and 1,000,000.0
CNY 0.00 100% 100% Yes 0.00 0.00 0.00
Gujing company hui d 0 sale of 0
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English Translation for Reference Only
Waste recycled
Reclamation glass bottle,
Co., Ltd glass,
(hereinafter wastebasket
refer to as
“Gujing
Waste”)
Design,
publish,
Anhui design and
Jinyunlai proxy of ads
Culture & in China;
Media Hefei, Ads 2,000,000.0 ceremony 2,000,000.0
CNY 0.00 100% 100% Yes 0.00 0.00 0.00
Co.,Ltd. Anhui marketing 0 service for 0
(hereinafter conferences
refer to as as well as
“Jinyunlai”) sales of
Limited gifts in arts
company and crafts
Administrati
Bozhou
ve licence
Gujing
items：
Packing
Productiom Naught;
Co., Ltd. Limited Anhui 30,000,000. 30,000,000.
and CNY General 0.00 100% 100% 0.00 0.00 0.00
(hereinafter company Bozhou 00 00
manufacture operating
refer to as
items:
“Bozhou
providing
Packing”)
packings for
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Gujing
Brand,
serials wine,
fruit and
vegetable
wine, health
wine of
Gujing
Brand
Other notes to subsidiaries obtained by establishment and investment:
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(2) Subsidiaries obtained by business combination under same control
Unit: RMB Yuan
Balance
of
parent
compan
y’s
equity
after
deducti
Actual ng the
amount The The Include Deducti differen
Other
of proporti proporti d in ble ce that
Registe Registe essentia Minorit
Subsidi Busines Currenc Busines investm on of on of consoli minorit loss of
Type red red l y
aries s nature y s scope ents at holding voting dated y minorit
place capital investm interest
the shares( rights( stateme interest y
ent
period- %) %) nt s interest
end s
exceed
equity
obtaine
d by
minorit
y
shareho
lders
Shangh Hotel
ai manage
Gujing ment
Jinhao (Except
Hotel for
Manage catering
ment Limited Hotel manage 265,05
Shangh 54,000,
Co., compan manage CNY ment、 8,900.0 0.00 100% 100% Yes 0.00 0.00 0.00
ai 000.00
Ltd. y ment Except 0
(herein for
after hotel
refer to operati
as on);
“Shang Self-ow
hai ned
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English Translation for Reference Only
Jinhao” housing
) rental;
establis
h
branch.
(If
there is
need
adminis
trative
licensin
g,
operati
ng
based
on the
license.
)
Accom
modati
on and
parking
Bozhou
services
Gujing
；lunch
Hotel
process
Co.,
Limited Hotel ing,
Ltd.(her Bozhou 628,00 798,40
compan manage CNY sales of 0.00 100% 100% Yes 0.00 0.00 0.00
einafter , Anhui 0.00 0.00
y ment alcohol
refer to
and
as
tobacco
“Gujing
and
Hotel”)
sales of
daily
commo
dity
Other notes to subsidiaries obtained by business combination under same control:
(3) Subsidiaries obtained by business combination not under same control
Unit: RMB Yuan
Subsidi Type Registe Busines Registe Currenc Busines Actual Other The The Include Minorit Deducti Balance
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aries red s nature red y s scope amount essentia proporti proporti d in y ble of
place capital of l on of on of consoli interest minorit parent
investm investm holding voting dated y compan
ents at ent shares( rights( stateme interest y’s
the %) %) nt s equity
period- after
end deducti
ng the
differen
ce that
loss of
minorit
y
interest
s
exceed
equity
obtaine
d by
minorit
y
shareho
lders
Other notes to subsidiaries obtained by business combination not under same control:
2. Special purpose entities or operating entities with control right formed by entrusted operation or lease
□Applicable √Inapplicable
Other explanation on special purpose entities or operating entities with control right formed by entrusted operation or lease:
3. Explanation on changes in consolidated scope
Explanation on changes in consolidated scope:
□Applicable √Inapplicable
4. Subsidiaries that newly combined into consolidation scope in the reporting period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that newly
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included in the consolidated scope
Unit: RMB Yuan
Name Closing net assets Net profit in current period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that not
longer included in the consolidated scope
Unit: RMB Yuan
Net profit from year-begin to
Name Net asset at the disposal date
disposal date
Other notes to changes in consolidated scope:
5. Business combination under same control during the reporting period
Unit: RMB Yuan
Cash flow arising
Judgment basis of The consolidated The consolidated
from operating
business Actual controller of income from net profit from
The combined party activities between
combination under the same control period-begin to period-begin to
period-begin and
the same control combination date combination date
combination date
Other notes to business combination under same control:
6. Business combination not under same control during the reporting period
Unit: RMB Yuan
The combined party Amount of goodwill Calculation method of goodwill
Other notes to business combination not under same control:
7. Subsidiaries reduced by selling equities without control right during the reporting period
Name of subsidiary Disposal date Recognition method of gains and losses
Other notes to subsidiaries reduced by selling equities without control right during the reporting period:
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8. The counter purchases in the reporting period
Calculation method of goodwill
Judgment basis of counter Recognition method of recognized or included into
The backdoor party
purchase combination costs current gains and losses in the
combination
Other notes to counter purchases:
9. Mergers in the reporting period
Unit: RMB Yuan
Type of merger Main assets merged in Main liabilities merged in
Mergers under the same control Item Amount Item Amount
Mergers not under the same control Item Amount Item Amount
Other notes to mergers:
10. Exchange rates of major items in financial statements for foreign entities
(Ⅶ) Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Closing balance Opening balance
Item Amount in foreign Exchan Amount in Exchange
Amount in RMB Amount in RMB
currency ge rate foreign currency rate
Cash: -- -- 114,599.85 -- -- 101,826.09
RMB -- -- 114,599.85 -- -- 101,826.09
Bank deposit: -- -- 1,824,629,157.42 -- -- 2,081,911,723.03
RMB -- -- 1,824,629,157.42 -- -- 2,081,911,723.03
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Other monetary funds: -- -- 0.00 -- -- 18,942.21
RMB -- -- -- --
18,942.21
Total -- -- 1,824,743,757.27 -- -- 2,082,032,491.33
Special explanation shall be made for the accounts limited by being mortgaged, pledged or frozen, deposited overseas or with
potential collecting risks:
2. Trading financial assets
(1) Trading financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Trading bonds investment
Trading equity instruments investment
The financial assets which are measured at their fair
values and the variation of which is recorded into the
profits and losses of the current period
Derivative financial assets
Hedging instruments
Others
Total
(2) Trading financial assets with realizable limit
Unit: RMB Yuan
Trading restriction or other significant limits in
Item Closing balance
realization
(3) Hedging instruments and notes to relevant hedging transaction
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
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Category Closing balance Opening balance
Bank acceptance bill 625,430,346.43 490,543,018.49
Total 625,430,346.43 490,543,018.49
(2) Notes receivable pledged at period-end
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- 0.00 --
Notes:
(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or
agreement, and undue notes endorsed to other parties at the end of the period
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- --
Notes:
As at the end of the reporting period, the Company has endorsed a total of undue bill of RMB243,230,785.85 to
other parties.
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
Issuance unit Issuance date Expired date Amount Remark
Bozhou Gujing Wine
27 Feb. 2012 27 Jul. 2012 5,150,000.00
Shop Co., Ltd.
Wenzhou Zhongyuan
Subsidiary Foodstuff Co., 16 Mar. 2012 16 Sep. 2012 4,300,000.00
Ltd.
Xiehe Food (Jiangyin)
28 Feb. 2012 28 Aug. 2012 3,700,000.00
Co., Ltd.
Huaian Wangyuan Food
18 Jan. 2012 18 Jul. 2012 3,000,000.00
Development Co., Ltd.
Bozhou Gujing Wine
9 Feb. 2012 9 Aug. 2012 2,750,000.00
Shop Co., Ltd.
Total -- -- 18,900,000.00 --
Notes:
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Notes of bank acceptance bill that already discounted or pledged.
4. Dividends receivable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Dividends receivable
aging less than one year
Of which:
Dividends receivable
aging over one year
Of which: -- -- -- --
Total
Notes:
5. Interest receivable
(1) Interest receivable
Unit: RMB Yuan
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Certificate of deposit 4,451,540.35 8,592,066.30 4,451,540.35 8,592,066.30
Total 4,451,540.35 8,592,066.30 4,451,540.35 8,592,066.30
(2) Overdue interest
Unit: RMB Yuan
Borrowing entity Overdue days (day) Amount of overdue interest
Total -- 0.00
(3) Notes to interest receivable
Naught
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6. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivable with
significant single amount
and individually 0.00 0% 0.00 0% 0.00 0% 0.00 0%
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
28,583,010. 1,328,051.1 39,013,88
Aging group 100% 4.65% 100% 1,328,051.13 3.4%
85 3 2.35
28,583,010. 1,328,051.1 39,013,88
Subtotal of the groups 100% 4.65% 100% 1,328,051.13
85 3 2.35
Accounts receivable with
insignificant single
amount and individually 0.00 0% 0.00 0% 0.00 0% 0.00 0%
withdrawn bad debt
provision
28,583,010. 1,328,051.1 39,013,88
Total -- -- -- 1,328,051.13 --
85 3 2.35
Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision
□Applicable √Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Aging Book balance Provision for bad Book balance Provision for bad
Amount Proportion debts Amount Proportion debts
Within 1 year
Including: -- -- -- -- -- --
within 6 months 23,883,601.89 83.56% 238,836.02 32,023,338.50 82.08% 320,233.38
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6 months to 1 year 1,670,776.13 5.85% 83,538.80 4,401,006.02 11.28% 220,050.30
Subtotal of within
25,554,378.02 89.41% 322,374.82 36,424,344.52 93.36% 540,283.68
1 year
1 year to 2 years 1,970,751.84 6.89% 197,075.18 1,994,998.68 5.12% 199,499.87
2 years to 3 years 498,559.73 1.74% 249,279.87 12,543.15 0.03% 6,271.58
More than 3 years 559,321.26 1.96% 559,321.26 581,996.00 1.49% 581,996.00
3 year to 4 years
4 years to 5 years
Over 5 years
Total 28,583,010.85 -- 1,328,051.13 39,013,882.35 -- 1,328,051.13
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable √Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable √Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
□Applicable √Inapplicable
(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
Recognition basis of Reversed or collected
Content of accounts Reversed or collected Reversed or collected
original bad debt amount of the accrued
receivable reason amount
provision bad debt provision
0.00
Total -- -- 0.00 --
The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount but
individually made impairment test at the end of reporting period:
Withdrawing
Content Book balance Bad debt amount Reason
proportion(%)
Total -- --
Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics:
(3) The write-off accounts receivable
Unit: RMB Yuan
Nature of accounts Whether arising
Name of entity Write-off time Write-off amount Write-off reason
receivable from related party
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English Translation for Reference Only
transaction or not?
Total -- -- 0.00 -- --
Notes to write off of accounts receivable:
(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%) voting rights of
the Company
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Name of entity
Book balance Withdrawal amount Book balance Withdrawal amount
Prosperity Lamps & Components
13,725.06 0.00 38,485.49 0.00
Limited
Total 13,725.06 0.00 38,485.49 0.00
(5) Information of top 5 accounts receivable:
Unit: RMB Yuan
The relationship with the
Name of entity Amount Aging Proportion
Company
Huangshan Huaxia
Non-related relationship 2,338,553.25 Within 6 months 8.18%
Commerce Co., Ltd.
NGS Supermarket Group
Non-related relationship 2,299,286.69 Within 6 months 8.04%
Co., Ltd.
Shanghai Haiyan
Logistics Development Non-related relationship 1,240,345.81 Within 6 months 4.34%
Co., Ltd.
Tongling Yi’an
Commercial City Co., Non-related relationship 1,192,937.09 Within 6 months 4.17%
Ltd.
Bozhou Chen Xiaomei Non-related relationship 1,102,287.84 Within 6 months 3.86%
Total -- 8,173,410.68 -- 28.59%
(6) The amounts due from related parties
Unit: RMB Yuan
Name of entity The relationship with the Amount Proportion
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Company
Gujing Group Controlling shareholder 13,725.06 0.05%
Total -- 13,725.06 0.05%
(7) Information of accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination of
Item Amount of termination
recognition
Total 0.00 0.00
(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount of
assets and liabilities arising from further involvement
Unit: RMB Yuan
Item Period-end
Assets:
Subtotal of assets 0.00
Liabilities:
Subtotal of liabilities 0.00
7. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Provision for doubtful Provision for doubtful
Category Balance Balance
debts debts
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n (%) n (%) (%) n (%)
Other accounts
receivable that is
51,109,940.5 51,109,940.5 54,205,281.8
individually significant 70.75% 100% 90.99% 51,109,940.55 94.29%
5 5 7
and provisions for bad
debts individually
Other accounts receivable that provisions for bad debts by group
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21,132,155.0
Aging group 29.25% 581,622.74 2.75% 5,368,699.28 9.01% 581,622.74 10.83%
7
21,132,155.0
Subtotal of group 29.25% 581,622.74 5,368,699.28 9.01% 581,622.74
7
Other accounts
receivable that is
individually insignificant 0.00 0% 0.00 0% 0.00 0% 0.00 0%
but provisions for bad
debts individually
72,242,095.6 51,691,563.2 59,573,981.1
Total -- -- -- 51,691,563.29 --
2 9 5
Notes for categories of other accounts receivable:
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
□Applicable √Inapplicable
In the group, other accounts receivable that provisions for bad debts by aging analysis:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Period-end Period-begin
Book balance Book balance
Aging Provision for bad Provision for bad
Proporti Proporti
Amount debts Amount debts
on on
Within 1 year
Including:
within 6 months 18,429,663.00 87.21% 18,429,663.00 4,387,567.89 81.72% 43,875.68
6 months to 1 year 1,602,260.59 7.58% 1,602,260.59 243,321.49 4.53% 12,166.07
Subtotal of within 1 year 20,031,923.59 94.79% 20,031,923.59 4,630,889.38 86.25% 56,041.75
1 year to 2 years 592,326.00 2.8% 592,326.00 235,809.90 4.4% 23,580.99
2 years to 3 years 500,000.00 2.37% 500,000.00 0.00 0% 0.00
More than 3 years 7,905.48 0.04% 7,905.48 502,000.00 9.35% 502,000.00
3 year to 4 years
4 years to 5 years
Over 5 years
Total 21,132,155.07 -- 581,622.74 5,368,699.28 -- 581,622.74
In the group, other accounts receivable that provisions for bad debts by balance percentage:
□Applicable √Inapplicable
In the group, other accounts receivable that provisions for bad debts by other methods:
100
English Translation for Reference Only
□Applicable √Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
□Applicable √Inapplicable
(2) Information of other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
Reason for reversed or Basis for determination Accrued amount before Amount of reversed or
Other accounts receivable
recovered of bad debts provision reversal or recovery recovered
The enterprise entered
Receipt of settlement
Minfa Securities Co., Ltd. into bankruptcy and 9,384,502.02 3,095,341.32
account of bankruptcy
settlement procedure
Total -- -- 9,384,502.02 --
Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts receivable:
Content Book balance Provision for bad debts Withdrawal percentage Reason
Total -- --
Notes of individually insignificant but was of big risk after grouped by credit risk other accounts receivable:
(3) Information of other accounts receivable written off in the reporting period
Unit: RMB Yuan
Whether arising from
Nature of other
Name of company Write off date Write off amount Write off reason related party
accounts receivable
transactions or not
Total -- -- 0.00 -- --
Notes of written-off of other accounts receivable:
(4) Other accounts receivable is due from shareholders with more than 5% (including 5%) of the voting
shares of the Company
√Applicable □Inapplicable
The beginning of the period number
The final number
Unit name
Provision for bad Provision for bad
Book balance Book balance
debt amount debt amount
101
English Translation for Reference Only
Gujing Group 6,098.49 0.00 0.00 0.00
Total 6,098.49 0.00 0.00 0.00
(5) Nature or details of other significant accounts receivable
Unit: RMB Yuan
Nature or details of the
Name of entity Amount Proportion of the total (%)
amount
Total 0.00 -- 0%
Notes:
(6) Information of top five other accounts receivable
Unit: RMB Yuan
Relationship with the Proportion of the total
Name of entity Amount Aging
Company (%)
Hengxin Securities Not related relationship 29,502,438.53 Over 3 years 40.84%
Jianqiao Securities Not related relationship 12,223,000.00 Over 3 years 16.92%
Minfa Securities Not related relationship 9,384,502.02 Over 3 years 12.99%
CYTS. Anhui Co., Ltd. Not related relationship 1,500,000.00 Within 6 months 2.08%
Shanghai Hongbang
Culture Communication Not related relationship 1,480,000.00 Within 6 months 2.05%
Co., Ltd.
Total -- 54,089,940.55 -- 40.84%
(7) Information of the amounts due from related parties
Unit: RMB Yuan
Name of entity Relationship with the Company Amount Proportion
Total -- 0.00 0%
(8) Information of other accounts receivable that terminated recognition
Unit: RMB Yuan
102
English Translation for Reference Only
Gains or loses related to the termination of
Item Amount of termination
recognition
Total 0.00 0.00
(9) If securitization is carried out on other accounts receivable as the underlying assets, please list amount
of assets and liabilities arising from further involvement
Unit: RMB Yuan
Item Closing balance
Assets:
Subtotal of assets 0.00
Liabilities:
Subtotal of liabilities 0.00
8. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year 205,901,580.10 99.93% 233,258,065.73 100%
1 year to 2
122,172.24 0.06% 4,645.00 0%
years
2 years to 3
12,060.00 0.01% 0.00 0%
years
Over 3 years 0.00 0% 0.00 0%
Total 206,035,812.34 -- 233,262,710.73 --
Notes of aging of prepayment:
(2) Information of the top 5 prepayment
Unit: RMB Yuan
Name of entity Relationship with the Amount Aging Reason for unsettled
103
English Translation for Reference Only
Company
Advance for advertising
Anhui Zhenda
Non-related relationship 111,865,500 31 Dec. 2012 expense in the second
Investment Co., Ltd.
half of 2012
Advance for advertising
CCTV Non-related relationship 23,861,553.00 31 Dec. 2012 expense in the second
half of 2012
Advance for advertising
Shenzhou TV Co., Ltd. Non-related relationship 9,639,711.00 31 Dec. 2012 expense in the second
half of 2012
Advance for advertising
Beijing Jinqiao Jiaren
Non-related relationship 6,502,502.00 31 Dec. 2012 expense in the second
Media TV Ads Co., Ltd.
half of 2012
Advance for advertising
Partner Media Comm Non-related relationship 4,900,000.00 31 Dec. 2012 expense in the second
half of 2012
31 Dec. 2012
Total -- 156,769,266 -- --
Notes of important companies of prepayment:
(3) Information about amount due from shareholders with more than 5% (including 5%) of the voting
shares of the Company in prepayment
□Applicable √Inapplicable
(4) Notes of prepayment
9. Inventory
(1) Category
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment of Impairment of
Book balance Book value Book balance Book value
inventories inventories
Raw materials 59,086,567.57 3,021,570.96 56,064,996.61 80,384,897.21 3,021,570.96 77,363,326.25
Construction
448,095,283.42 0.00 448,095,283.42 407,663,001.44 0.00 407,663,001.44
contract assets
104
English Translation for Reference Only
Inventory goods 33,662,946.33 1,760,585.85 31,902,360.48 94,891,327.59 1,760,585.85 93,130,741.74
Turnover material
Consumable
biological assets
Total 540,844,797.32 4,782,156.81 536,062,640.51 582,939,226.24 4,782,156.81 578,157,069.43
(2) Impairment of inventories
Unit: RMB Yuan
Opening book Decrease
Category Increase Closing book balance
balance Reversal Written off
Raw materials 3,021,570.96 0.00 0.00 0.00 3,021,570.96
Construction contract
0.00 0.00 0.00 0.00 0.00
assets
Inventory goods 1,760,585.85 0.00 0.00 0.00 1,760,585.85
Turnover material
Consumable biological
assets
Total 4,782,156.81 0.00 0.00 0.00 4,782,156.81
(3) Details of provision for falling price of inventories
Proportion of reversal of
Basis on provision for falling
Item Reasons for reversal provision for impairment of
price of inventories
inventories to closing balance
According to the inventory
lower of cost and net realizable
Raw materials
value measurement
According to the inventory
lower of cost and net realizable
value measurement
Inventory goods
Construction contract assets
Turnover material
Consumable biological assets
105
English Translation for Reference Only
Notes of inventory:
10. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Naught 0.00 0.00
Total
Notes of other current assets:
Naught
11. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Available-for-sale bonds
Available-for-sale equity instruments
Others 0.00
Total
In the reporting period, the Company reclassified the held-to-maturity investment into available-for-sale financial assets, a total of
RMB** was reclassified, which takes *% of total matured investment before reclassification.
Notes of available-for-sale financial assets
(2) Long-term liability investment of available-for-sale financial assets
Unit: RMB Yuan
Accrued
Initial Interest in the accounts
Opening Closing
Item Category Balance investment Matured date reporting receivable or
balance balance
cost period received
interest
Total -- -- --
Notes of long-term liability investment of available-for-sale financial assets:
106
English Translation for Reference Only
12. Held-to-maturity investment
(1) Information
Unit: RMB Yuan
Item Closing book balance Opening book balance
Total
Notes of held-to-maturity investment:
(2) Information of held-to-maturity investment sold in the reporting period but was not matured
Unit: RMB Yuan
Item Amount Percentage of the investment amount before sales
Total 0.00 --
Notes of undue held-to-maturity investment sold in the reporting period:
13. Long-term accounts receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Financing leases
Including: unrealized financing
gains
Installment sales
Installment offering service
Others
Total
14. Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Nature Percenta Voting Total Total Net
Name Registra Legal Nature Register Total Net
of Currenc ge of percenta closing operatio profit of
of tion represen of ed closing closing
enterpri y holding ge of liabilitie n the
investee place tative business capital assets assets
ses shares the s revenue reportin
107
English Translation for Reference Only
of the Compan of the g
Compan y in reportin period
y investee g period
I. Joint ventures
II. Associated enterprises
Notes if significant differences exist between the important accounting policies and accounting estimations of joint ventures,
associated enterprises and the Company:
15. Long-term equity investment
108
English Translation for Reference Only
(1) List of long-term equity investment
Unit: RMB Yuan
Explanation for
indifferences
Withdrawn
between the
Share holding Voting impairment Cash bonus in
Accounting Initial Opening Increase/decrea share holding Impairment
Investee Closing balance percentage in percentage in provision in the the reporting
method investment cost balance se percentage and provision
investee investee reporting period
voting
period
percentage in
investee
Total -- 0.00 0.00 0.00 0.00 -- -- -- 0.00 0.00 0.00
109
English Translation for Reference Only
(2) Information of the limitation on the capability to transfer capital to investee
Unit: RMB Yuan
Item that with limitation on the capability Investment losses unrecognized in current
Reason for limitation
to transfer capital to investee period
Notes of long-term equity investment:
16. Investment property
(1) Investment property calculated by cost
√Applicable □Inapplicable
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening book balance Closing book balance
period reporting period
I. Total original book
61,126,470.85 220,000.00 0.00 61,346,470.85
value
1. Houses & buildings 58,481,878.85 220,000.00 0.00 58,701,878.85
2. Land use right 2,644,592.00 0.00 0.00 2,644,592.00
II. Accumulated
depreciation and
28,568,060.59 631,826.06 0.00 29,199,886.65
accumulated
amortization
1. Houses & buildings 28,327,867.04 600,818.78 0.00 28,928,685.82
2. Land use right 240,193.55 31,007.28 0.00 271,200.83
III. Total net book
value of investment 32,558,410.26 0.00 0.00 32,146,584.20
property
1. Houses & buildings 30,154,011.81 29,773,193.03
2. Land use right 2,404,398.45 2,373,391.17
IV. Accumulated
provision for
0.00 0.00 0.00 0.00
impairment of
investment property
1. Houses & buildings 0.00 0.00 0.00 0.00
2. Land use right 0.00 0.00 0.00 0.00
110
English Translation for Reference Only
V. Total book value of
32,558,410.26 0.00 0.00 32,146,584.20
investment property
1. Houses & buildings 30,154,011.81 29,773,193.03
2. Land use right 2,404,398.45 2,373,391.17
Unit: RMB Yuan
The reporting period
Depreciation and amortization of the reporting period 631,826.06
Withdrawal amount for impairment of investment property in the
0.00
reporting period
(2) Investment property calculated by fair value
□Applicable √Inapplicable
Notes of investment property that altered calculated mode and failed to accomplish certification of property, and notes of reason that
the fail accomplish and estimated accomplish date:
Item Original book val Accrued depreciati Impairment p Book value
ue on rovision
Building for wine filling and packing 22,618,411.84 12,419,366.50 0 10,199,045.34
workshop (third floor)
Office building for filling and packing 6,458,600.00 3,308,418.18 0 3,150,181.82
workshop (second floor)
Filling and packing workshop 8,268,007.88 3,044,336.24 0 5,223,671.64
Packing complex building project 6,110,867.18 3,579,440.76 0 2,531,426.42
(including packing workshop No. 7)
New established workshop in fodder plant 4,263,000.01 299,982.24 0 3,963,017.77
(workshop No. 1)
New established workshop in fodder plant 5,920,833.34 419,975.15 0 5,500,858.19
(workshop No. 2)
Total 53,639,720.25 23,071,519.07 0.00 30,568,201.18
17. Fixed assets
(1) Information
Unit: RMB Yuan
Opening book Decrease in the Closing book
Item Increase in the reporting period
balance reporting period balance
I. Total original book value 859,712,029.43 61,565,366.13 11,948,662.21 909,328,733.35
Including: Property and 530,798,978.04 46,373,810.07 7,840,018.98 569,332,769.13
111
English Translation for Reference Only
building
Machineries 215,588,523.65 6,930,719.29 1,583,264.51 220,935,978.43
Vehicles 34,483,720.04 5,416,391.06 1,658,682.72 38,241,428.38
Official equipments and
78,840,807.70 2,844,445.71 866,696.00 80,818,557.41
other equipment
Opening book Increase in Withdrawal in Decrease in current Closing book
--
balance current period current period period balance
II. Accumulated
489,981,848.17 0.00 26,345,893.97 10,138,708.13 506,189,034.01
depreciation
Including: Property and
283,687,804.12 9,009,456.17 6,611,199.20 286,086,061.09
building
Machineries 143,531,259.64 7,390,471.89 1,238,502.64 149,683,228.89
Vehicles 14,289,697.93 6,120,084.20 1,634,159.09 18,775,623.04
Official equipments and
48,473,086.48 3,825,881.71 654,847.20 51,644,120.99
other equipment
Opening book Closing book
-- --
balance balance
III. The net book value of
369,730,181.26 -- 403,139,699.34
fixed assets
Including: Property and
247,111,173.92 -- 283,246,708.04
building
Machineries 72,057,264.01 -- 71,252,749.54
Vehicles 20,194,022.11 -- 19,465,805.34
Official equipments and
30,367,721.22 -- 29,174,436.42
other equipment
IV. Total impairment
6,951,990.42 -- 6,951,990.42
provision
Including: Property and
4,264,099.10 -- 4,264,099.10
building
Machineries 2,020,210.96 -- 2,020,210.96
Vehicles 0.00 -- 0.00
Official equipments and
667,680.36 -- 667,680.36
other equipment
V. Total book value of fixed
362,778,190.84 -- 396,187,708.92
assets
Including: Property and
242,847,074.82 -- 278,982,608.94
building
112
English Translation for Reference Only
Machineries 70,037,053.05 -- 69,232,538.58
Vehicles 20,194,022.11 -- 19,465,805.34
Other equipment 29,700,040.86 -- 28,506,756.06
Depreciation amount of this reporting period was of RMB26,345,893.97, RMB54,084,266.32 was transferred into fixed assets from
construction project in the reporting period.
(2) Temporary idle fixed assets
Unit: RMB Yuan
Accrued Impairment
Item Original book value Net book value Remark
depreciation provision
House and buildings 15,646,500.09 11,190,960.05 4,264,099.10 191,440.94
Machinery
12,113,215.87 9,978,244.36 2,020,210.96 114,760.55
equipments
Vehicles 2,641,888.65 1,942,360.02 667,680.36 31,848.27
Electronic
equipments and 30,401,604.61 23,111,564.43 6,951,990.42 338,049.76
other
(3) Fixed assets leased in from financing lease
□Applicable √Inapplicable
(4) Fixed assets leased out from operation lease
√Applicable □Inapplicable
Unit: RMB Yuan
Category Closing book value
House and buildings 0.00
Machinery equipments 1,362,823.79
Vehicles 0.00
Electronic equipments and other 182,223.57
(5) Information of hold-for-sale fixed assets at period-end
Unit: RMB Yuan
Item Book value Fair value Estimated disposal cost Estimated settle date
113
English Translation for Reference Only
(6) Information of fixed assets failed to accomplish certification of property
Item Reason Estimated accomplish date
The asset has been arising for a long term,
of complicated processing procedure and
Boiler workshop 31 Dec. 2012
involved with comparatively many
government departments.
The asset has been arising for a long term,
of complicated processing procedure and
Steam turbine workshop 31 Dec. 2012
involved with comparatively many
government departments.
The asset has been arising for a long term,
of complicated processing procedure and
Workshop of 35KV power transformation 31 Dec. 2012
involved with comparatively many
government departments.
The asset has been arising for a long term,
Steal structure platform of Precision Team of complicated processing procedure and
31 Dec. 2012
in west district involved with comparatively many
government departments.
The asset has been arising for a long term,
Steel web of finished wine warehouse in of complicated processing procedure and
31 Dec. 2012
west district involved with comparatively many
government departments.
The asset has been arising for a long term,
Packing materials warehouse in west of complicated processing procedure and
31 Dec. 2012
district involved with comparatively many
government departments.
The asset has been arising for a long term,
Newly increased finished wine warehouse of complicated processing procedure and
31 Dec. 2012
in west district involved with comparatively many
government departments.
The asset has been arising for a long term,
Production workshop and subsidiary of complicated processing procedure and
31 Dec. 2012
facilities involved with comparatively many
government departments.
The asset has been arising for a long term,
Office buildings, dormitory buildings and of complicated processing procedure and
31 Dec. 2012
subsidiary facilities involved with comparatively many
government departments.
Notes of fixed assets:
There exists no fixed assets used for mortgage guarantee.
114
English Translation for Reference Only
18. Construction in progress
(1 )
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Reform project of brewing
technique on highly qualified 10,554,824.37 0.00 10,554,824.37 7,117,925.85 0.00 7,117,925.85
base liquid
Hook store, filling and
packing center of base liquid
122,313,781.82 0.00 122,313,781.82 40,493,357.07 0.00 40,493,357.07
and construction project of
supplemental facilities
Removal and R&D project of
81,491,082.74 0.00 81,491,082.74 84,455,897.59 0.00 84,455,897.59
base liquid
Operation network of Gujing 1,495,160.00 0.00 1,495,160.00 915,000.00 0.00 915,000.00
Technology renovation
1,659,105.40 0.00 1,659,105.40 24,920.00 0.00 24,920.00
project-workshop
Deep processing
10,049,854.95 0.00 10,049,854.95 10,000.00 0.00 10,000.00
comprehensive building
Reform of museum 160,000.00 0.00 160,000.00 0.00 0.00 0.00
Total 227,723,809.28 0.00 227,723,809.28 133,017,100.51 0.00 133,017,100.51
115
English Translation for Reference Only
(2) Significant changes in construction in progress
Unit: RMB Yuan
Including:
Project input Capitalization
Name of Opening Transferred to Other Project Capitalization capitalization Source of Closing
Budget Increase percentage of of interest rate
project balance fixed assets decrease process of interest of interest funding balance
budget (%)
this period
Reform
project of
brewing Financing
135,000,000.0
technique on 7,117,925.85 3,436,898.52 0.00 0.00 7.82% 7.02 0.00 0.00 0% capital and 10,554,824.37
0
highly self finance
qualified base
liquid
Hook store,
filling and
packing center
of base liquid Financing
686,000,000.0 122,313,781.8
and 40,493,357.07 81,820,424.75 0.00 0.00 17.83% 15.62 0.00 0.00 0% capital and
0 2
construction self finance
project of
supplemental
facilities
Removal and
372,340,000.0
R&D project 84,455,897.59 51,119,451.47 54,084,266.32 0.00 21.89% 49.68 0.00 0.00 0% Self finance 81,491,082.74
0
of base liquid
116
English Translation for Reference Only
Operation
network of 3,050,000.00 915,000.00 580,160.00 0.00 0.00 49.02% 58.50 0.00 0.00 0% Self finance 1,495,160.00
Gujing
Technology
renovation
9,940,000.00 24,920.00 1,634,185.40 0.00 0.00 16.69% 20.00 0.00 0.00 0% Self finance 1,659,105.40
project-works
hop
Deep
processing
19,800,000.00 10,000.00 10,039,854.95 0.00 0.00 50.76% 55.00 0.00 0.00 0% Self finance 10,049,854.95
comprehensiv
e building
Reform of
800,000.00 0.00 160,000.00 0.00 0.00 20% 24.20 0.00 0.00 0% 160,000.00
museum
1,226,930,000 133,017,100.5 148,790,975.0 227,723,809.2
Total 54,084,266.32 0.00 -- -- 0.00 0.00 -- --
.00 1 9 8
Notes of significant changes in construction in progress:
117
English Translation for Reference Only
(3) Impairment provision of construction in progress
Unit: RMB Yuan
Increase in the Decrease in the Reason for
Item Opening amount Closing balance
reporting period reporting period withdrawal
Total 0.00 0.00 0.00 0.00 --
(4) Information of procedures of significant construction in progress
Item Project process Note
(5) Notes of construction in progress
19. Engineering materials
Unit: RMB Yuan
Increase in the Decrease in the
Item Opening balance Closing balance
reporting period reporting period
Total 3,635,801.34
Notes of engineering materials:
20. Clearance of fixed assets
Unit: RMB Yuan
Reason for transferring to
Item Opening book value Closing book value
clearance
Total --
Notes of clearance process of fixed assets with a clearance term of over 1 year since the transfer into fixed assets:
21. Productive biological assets
(1) Calculated by cost
□Applicable √Inapplicable
(2) Calculated by fair value
□Applicable √Inapplicable
22. Oil and gas assets
Unit: RMB Yuan
118
English Translation for Reference Only
Item Opening book balance Increase Decrease Closing book balance
I. Total original book value
1. Property rights of proved
mining area
2. Property rights of
unproved mining area
3. Well and relevant
facilities
II. Total accumulated
depreciation
1. Property rights of proved
mining area
2. Well and relevant
facilities a
III. Total accumulated oil
and gas assets depreciation
1. Property rights of proved
mining area
2. Property rights of
unproved mining area
3. Well and relevant
facilities
IV. Total book value of oil
and gas assets
1. Property rights of proved
mining area
2. Property rights of
unproved mining area
3. Well and relevant
facilities
Notes of oil and gas assets:
23. Intangible assets
(1) Information
Unit: RMB Yuan
Increase in the reporting Decrease in the reporting
Item Opening balance Closing balance
period period
I. Total original book
311,997,360.74 80,456,060.00 0.00 392,453,420.74
value
Land use right 270,793,360.80 80,456,060.00 351,249,420.80
Patent 38,150,000.00 38,150,000.00
Software 3,053,999.94 0.00 3,053,999.94
II. Total accrued
63,403,128.70 3,582,744.39 0.00 66,985,873.09
amortization
Land use right 24,582,620.60 3,374,904.39 27,957,524.99
Patent 37,910,000.00 54,640.00 37,964,640.00
Software 910,508.10 153,200.00 0.00 1,063,708.10
III. Total net book value of
248,594,232.04 0.00 0.00 325,467,547.65
intangible assets
Land use right 246,210,740.20 323,291,895.81
119
English Translation for Reference Only
Patent 240,000.00 185,360.00
Software 2,143,491.84 1,990,291.84
IV. Total impairment
0.00 0.00 0.00 0.00
provision
Land use right 0.00
Patent 0.00
Software 0.00 0.00 0.00 0.00
Total book value of
248,594,232.04 0.00 0.00 325,467,547.65
intangible assets
Land use right 246,210,740.20 323,291,895.81
Patent 240,000.00 185,360.00
Software 2,143,491.84 1,990,291.84
Amortization was of RMB3,582,744.3 in the reporting period.
(2) Company development expense
Unit: RMB Yuan
Decrease
Item Opening balance Increase Recognized into Recognized as Closing balance
current gains/losses intangible assets
Total 0.00 0.00 0.00 0.00 0.00
Development expense percentage of total expenditure of R&D projects in the reporting period.
Percentage intangible assets arising from inner R&D of the Company of closing book value of intangible assets.
Notes of R&D projects of the Company, those that includes individual value of more than RMB 1 million and recognized
with a basis of assessed value, please disclose name of evaluation authority and method of evaluation:
(3) Information of intangible assets that failed to accomplish certification of property
24. Goodwill
Unit: RMB Yuan
Impairment
Name of investee or event that Increase in the Decrease in the
Opening balance Closing balance provision at
generated goodwill reporting period reporting period
period-end
Total 0.00 0.00 0.00 0.00 0.00
Notes of test method of goodwill impairment and impairment withdrawal method:
25. Long-term amortization expense
Unit: RMB Yuan
Amortization Reason for other
Item Opening balance Increase Other decrease Closing balance
balance decrease
Decoration of
Breweries 743,422.33 0.00 371,711.16 0.00 371,711.17
Industrial Park
Overhaul of 141,965.72 0.00 70,982.86 0.00 70,982.86
120
English Translation for Reference Only
extract filtering
wine pot project
Celebrity’s House 3,650,877.17 0.00 495,664.64 0.00 3,155,212.53
House lease in
3,063,200.32 0.00 875,200.09 0.00 2,188,000.23
Zhengzhou
Fitment project of
experience club 2,079,000.00 0.00 686,228.61 0.00 1,392,771.39
in Zhengzhou
Total 9,678,465.54 0.00 2,499,787.36 0.00 7,178,678.18 --
Notes of long-term amortization expense:
26. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
√Applicable □Inapplicable
Deferred tax assets and liabilities that already recognized
Unit: RMB Yuan
Item Closing balance Opening balance
Deferred income tax assets:
Provision for assets impairment 16,188,440.42 16,188,440.42
Formation expenses
Deductible losses 118,096.95 118,096.95
4,612,070.74 4,871,534.33
Subtotal 20,918,608.11 21,178,071.70
Deferred income tax liabilities:
Estimated value of trading financial instruments,
0.00 0.00
derivative financial instruments
Fair value changes on available-for-sale financial
0.00 0.00
assets that recognized into capital reserves
Subtotal 0.00 0.00
List of unrecognized deferred income tax assets
Unit: RMB Yuan
Item Closing balance Opening balance
Deductible temporary
Deductible losses
Total
Deductible losses of unrecognized deferred income tax assets will due in the following years
Unit: RMB Yuan
Year Closing balance Opening balance Remark
2012 0.00 0.00
2013 0.00 0.00
2014 0.00 0.00
2015 0.00 0.00
2016 0.00 0.00
Total 0.00 0.00 --
List of taxable differences and deductible differences items
121
English Translation for Reference Only
Unit: RMB Yuan
Temporary differences amount
Item
As at period-end As at period-begin
Taxable differences items
Bad debt provision 53,019,614.42 53,019,614.42
Provision for falling price of inventory 4,782,156.81 4,782,156.81
Impairment provision for fixed assets 6,951,990.42 6,951,990.42
Unrealized internal trading interest 622,901.90 622,901.90
Deferred income 11,513,759.67 12,551,614.04
Withdrawal expense 6,311,621.33 6,311,621.33
Subtotal 83,202,044.55 84,239,898.92
Deductible differences item
Deductible losses 512,867.42 512,867.42
Subtotal 512,867.42 512,867.42
(2) Deferred income tax assets and liabilities are listed as the net value after offset
□Applicable √Inapplicable
Notes of deferred income tax assets and liabilities
27. List of provision for assets impairment
Unit: RMB Yuan
Opening book Decrease Closing book
Item Increase
balance Reversal Written off balance
I. Provision for bad debt 53,019,614.42 0.00 0.00 0.00 53,019,614.42
II. Provision for inventory
4,782,156.81 0.00 0.00 0.00 4,782,156.81
falling price
III. Impairment provision of
available-for-sale financial
assets
IV. Impairment provision of
held-to-maturity investment
V. Impairment provision of
0.00 0.00
long-term equity investment
VI. Impairment provision of
0.00 0.00 0.00
investment property
VII. Impairment provision of
6,951,990.42 0.00 0.00 0.00 6,951,990.42
fixed assets
VIII. Impairment provision of
engineering materials
IX. Impairment provision of
0.00 0.00 0.00
construction in progress
X. Impairment provision of
productive biological assets
Including: mature
productive biological assets
XI. Impairment provision of
oil gas assets
XII. Impairment provision of
0.00 0.00 0.00
intangible assets
XIII. Impairment provision of
0.00
goodwill
XIV. Others
Total 64,753,761.65 0.00 0.00 0.00 64,753,761.65
122
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Notes of the list of assets impairment:
28. Other non-current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Total
Notes of other non-current assets
29. Short-term loan
(1)Category
Unit: RMB Yuan
Category Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan
Total
Notes:
(2)List of unsettled mature short-term loan
Unit: RMB Yuan
Reason for
Name of creditor Amount of loan Rate of loan Usage Estimated settle date
unsettlement
Total 0.00 -- -- -- --
RMB000 was paid back after the Balance Sheet Date.
Notes of short-term loan, for those gaining extended term, notes term of extension and new mature date:
30. Trading financial liabilities
Unit: RMB Yuan
Item Closing fair value Opening fair value
Public trading bonds
Financial liabilities designed to recognized with
a basis on fair value and with its changes
recognized into current gains and losses
Derivative financial liabilities
Other financial liabilities
Total
Notes:
123
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31. Notes payable
Unit: RMB Yuan
Category Closing balance Opening balance
Trade acceptance
Bank acceptance 10,000,000.00
Total 10,000,000.00
RMB000 will be due in next fiscal period.
Notes of notes payable:
32. Accounts payable
(1 )
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 146,731,783.40 214,665,021.65
Over 1 year 5,451,301.76 5,158,834.80
Total 152,183,085.16 219,823,856.45
(2) The accounts payable to shareholders with more than 5% (including 5%) of the voting shares of
the Company
□Applicable √Inapplicable
Notes of the accounts payable aging over one year:
Name of entity Owing amount Age Reason for unsett Amount pay back after Bala
lement nce Sheet Date
Ningbo Tianan (Group) Co., Ltd 1,479,096.00 1 year to 2 ye Final payment of 0.00
ars equipments
Jiangsu Liyang Buliding and 490,485.32 Over 3 yeaers Quality guarantee 0.00
Installation Engineering Co., Ltd. money for deco
ration
SHANGHAI TIMES PRINTING 474,696.76 Over 3 years Suspend of busin 0.00
CO., LTD. ess
Chengdu Wanji Power Equipment 362,600.00 1 year to 2 years Final payment of 0.00
Manufacture Co., Ltd. equipments
Anhui Onesky Electrical 293,120.00 1 year to 2 years Final payment of 0.00
Technology Co., Ltd. equipments
Total 3,099,998.08 0.00
33. Advance from customers
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 79,287,178.27 128,698,731.68
Over 1 year 3,112,688.34 6,898,456.20
Total 82,399,866.61 135,597,187.88
124
English Translation for Reference Only
(2) Advanced from customers from shareholders with more than 5% (including 5%) of the voting
shares of the Company
□Applicable √Inapplicable
Notes of significant advance from customers aging over one year:
Item Amount received in advan Aging Reason for transfer
ce
Anhui Meigao Chemical Co., Ltd. 85,615.85 1 year to 2 years Final payment
Yongchen Shenhuo Lida Trade Co., Ltd. 79,857.23 1 year to 2 years Final payment
Guzhen County Guzhen Fengze Wine and 69,996.65 1 year to 2 years Final payment
Tobacco Operation Department
Laishui County Qingyun Tobacco Industry 63,561.25 1 year to 2 years Final payment
Wholesale Department
Taiyuan Tianchuang Yizu Trade Co., Ltd. 62,229.09 1 year to 2 years Final payment
Total 361,260.07
34. Payroll payable
Unit: RMB Yuan
Item Opening book balance Increase Decrease Closing book balance
I. Salary, bonus,
145,431,983.11 107,851,250.51 160,377,571.16 92,905,662.46
allowance, subsidy
II. Employee welfare 0.00 3,659,344.85 3,659,344.85 0.00
III. Social insurance 10,208,973.40 50,980,557.16 56,867,297.39 4,322,233.17
Including:
①Medical insurance 2,436,498.16 12,443,851.60 14,798,241.29 82,108.47
premiums
②Basic pension
6,447,583.35 27,408,261.54 29,941,054.75 3,914,790.14
benefits
③Unemployment
638,916.29 5,993,070.28 6,529,269.73 102,716.84
insurance
④Work-related
374,575.79 4,584,724.21 4,782,878.31 176,421.69
injury insurance
⑤Maternity
311,399.81 550,649.53 815,853.31 46,196.03
insurance
IV. Housing fund 25,044,636.37 33,031,632.82 37,161,088.26 20,915,180.93
V. Redemption for
terminations of labor 0.00 0.00 0.00 0.00
contract
VI. Others 12,076,484.39 4,156,092.82 3,040,185.58 13,192,391.63
Labour union budget
12,076,484.39 4,156,092.82 3,040,185.58 13,192,391.63
and other
Total 192,762,077.27 199,678,878.16 261,105,487.24 131,335,468.19
RMB 0.00 is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB13,192,391., and the non-monetary benefits are RMB 0.00,
as well as the compensation for terminating the labor contract is RMB 0.00.
The estimated distribution date and amount as well as other arrangements for payroll payable:
35. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT 109,589,173.01 145,921,550.30
125
English Translation for Reference Only
Consumption tax 138,464,380.99 195,847,812.80
Business tax 689,115.92 733,221.63
Corporate income tax 242,936,162.77 267,060,470.99
Personal income tax 1,680,886.81 4,739,780.86
Urban maintenance and construction tax 19,372,600.16 25,868,592.02
Stample tax 478,837.90 1,777,727.97
Education surtax 8,203,776.99 25,773,125.40
Other 635,813.85 3,357,229.46
Total 522,050,748.40 671,079,511.43
Notes of taxes payable: for the taxable income of branch companies and factories approved to be inter-adjusted by their local
tax authorities, the Company shall specified their calculation procedure:
36. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Interest payable on long-term borrowings that interest
was paid by stages and principle was repay upon due
Interest of corporate bond
Interest payable on short-term borrowings
Total
Notes:
37. Dividends payable
Unit: RMB Yuan
Reason for unsettlement over 1
Name of company Closing balance Opening balance
year
Total --
Notes:
38. Other accounts payable
(1 )
Unit: RMB Yuan
Item Closing balance Opening balance
Withing 1 year 257,395,861.91 186,943,937.99
Over 1 year 33,520,640.14 61,946,080.79
Total 290,916,502.05 248,890,018.78
(2) Other accounts payable from shareholders with more than 5% (including 5%) of the voting
shares of the Company
√Applicable □Inapplicable
Unit: RMB Yuan
126
English Translation for Reference Only
Name of entity Closing balance Epening balance
Gujing Group 0.00 180,311.93
Total 0.00 180,311.93
(3)Notes of the other large amount accounts payable aging over 1 year
Item Owing amount Aging Reason for unsettlement
Guangxi Construction Engineering 2,265,300.00 3 years to 3 years The project hasn’t been
Group No. 1 Installation Co., Ltd qualified after acceptan
ce inspection
Shanghai Sage Software Co., Ltd. 524,204.00 2 years to 3 years Guarantee money
Fujian Lucky Horse Group Co., Ltd. 400,000.00 2 years to 3 years Guarantee money
Shenzhen Suomeite Technology 300,000.00 1 years to 2 years Guarantee money
Co., Ltd.
Yongcheng Qianjing Trade Co., 260,000.00 1 years to 2 years Guarantee money
Ltd.
Total 3,749,504.00
(4)Notes of other accounts payable with significant amount
Item Owing amount Content
Henan Guangyu Construction Group Co., Ltd. 2,600,000.00 Contact money
Jieshou Xinghua Construction Engineering Co., Ltd. 2,306,000.00 Contact money
Zhejiang Zhegong Trade Co., Ltd. 2,276,642.00 Guarantee money
Huanan Jingdingcheng Trade Co., Ltd. 2,103,440.00 Guarantee money
Suzhou Pingjiang District Xinli Wine Industry Center 1,554,916.00 Guarantee money
Total
10,840,998.00
39. Estimated liabilities
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
External offering
guarantee
Unsettled lawsuit
Product quality guarantee
Responsibility of
reorganization
Dismissal welfare
Contract in losses waited
for execution
Other
Total
Notes:
40. Non-current liabilities due within 1 year
(1 )
Unit: RMB Yuan
127
English Translation for Reference Only
Item Closing balance Opening balance
Long-term loan due within 1 year
Bonds payable due within 1 year
Long-term accounts payable due within 1 year
Total
(2)Long-term loan due within 1 year
Long-term loan due within 1 year
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan
Total
RMB000 of long-term loan due within 1 year was of mature loan with extended term.
Top five long-term loan due within 1 year
Unit: RMB Yuan
Closing balance Opening balance
Foreign Foreign
Creditor Starting date Ending date Currency Rate (%)
currency RMB balance currency RMB balance
balance balance
Total -- -- -- -- -- --
Mature loan of long-term loan due within 1 year:
Unit: RMB Yuan
Reason for Estimated settle
Creditor Amount of loan Overdue date Annual rate (%) Usage
unsettlement date
Total -- -- -- -- --
RMB000 was paid back after Balance Sheet Date:
Notes of long-term borrowings due within 1 year:
(3)Bonds payable due within 1 year
Unit: RMB Yuan
Accrued Interest paid
Opening Closing
Issuance Issuing interest in in the Closing
Name Par value Term interest interest
date amount current reporting balance
payable payable
period period
Notes:
(4)Long-term accounts payable due within 1 year
Unit: RMB Yuan
Creditor Term Initial amount Rate (%) Accrued interest Closing balance Conditions
Notes:
128
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41. Other current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
Energy-saving and reform project of coal-fired
215,354.38 430,708.75
industry boiler and glass furnace
Bozhou city logistics center project 30,000.00 60,000.00
Special account for prevention and cure of waste
325,000.00 650,000.00
water directed by municipal finance
Financial subsidy for energy-saving project 185,000.00 370,000.00
Financial subsidy for technology innovation 262,500.00 525,000.00
Discount on technology reform of deposit in
20,000.00 40,000.00
budget directed by municipal finance
Total 1,037,854.38 2,075,708.75
Notes:
42. Long-term loan
(1)Category of long-term loan
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan
Total
Notes:
(2)The top five long-term loans
Unit: RMB Yuan
Closing balance Opening balance
Foreign Foreign
Creditor Starting date Ending date Currency Rate (%)
currency RMB amount currency RMB amount
amount amount
Total -- -- -- -- -- --
Notes of long-term loan: for the long-term loans arising from mature loans with extended term, the Company shall explain
the conditions of extension, principal, interest, expected repayment arrangement:
43. Bonds payable
Unit: RMB Yuan
Interest paid
Opening Closing Closing
Issuance Issuing in the Closing
Name Par value Term interest interest interest
date amount reporting balance
payable payable payable
period
129
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Notes of bonds payable, including the conditions and date of conversion of the convertible corporate bonds:
44. Long-term payable
(1) The top five long-term payable
Unit: RMB Yuan
Conditions of
Company Term Initial amount Rate (%) Accrued interest Closing balance
loan
(2)List of the financing lease payable under the long-term loan
Unit: RMB Yuan
Closing balance Opening balance
Company
Foreign currency RMB Foreign currency RMB
Total
RMB** was guarantee for the Company’s financing lease provided by the independent third party.
Notes of the long-term payable:
45. Specific payables
Unit: Yuan
Decrement in
Opening Increment in Closing
Item current Remark
amount current period amount
period
Total --
46. Other non-current liabilities
Unit：Yuan
Item Closing balance Opening balance
Government grant related to assets 10,475,905.29 10,475,905.29
Total 10,475,905.29 10,475,905.29
Explanation for other non-current liabilities: government grant related to assets and closing amount in
report period:
Amortization Decrement
Increment in Closing
Item Opening balance in current in current
current period balance
period period
Energy-saving and reform 1,052,155.08 0.00 0.00 0.00 1,052,155.08
project of coal-fired industry
boiler and glass furnace
Haozhou logistics center 420,000.00 0.00 0.00 0.00 420,000.00
project
130
English Translation for Reference Only
1,950,000.21 0.00 0.00 0.00 1,950,000.21
Special account for prevention
and cure of waste water
directed by municipal finance
Financial allowance of energy 3,299,166.67 0.00 0.00 3,299,166.67
conservation projects
Financial allowance of 3,631,250.00 0.00 0.00 3,631,250.00
technical transformation
Direct financial discount of 123,333.33 0.00 0.00 123,333.33
deposit technical
transformation in budget
10,475,905.29 0.00 0.00 0.00 10,475,905.29
Total
47. Share capital
Unit：Yuan
Increase/decrease (+、－)
Opening Capitalizatio Closing
amount Issuance of amount
Bonus shares n of capital Others Subtotal
new shares
reserve
251,800,000. 251,800,000. 251,800,000. 503,600,000.
Item
00 00 00 00
Explanation for changes of share capital: any capital increase or reduction in report period should reveal
name of accounting firm for capital verification and reference number of capital verification report; for
company limited by shares that is founded within 3 years, it just needs net asset explanations for years
before setting up; capital verification of changing limited liability company to joint stock company.
48. Treasury stock
Explanation for treasury stock
None
49. Specific reserves
Explanation for specific reserves
None
50. Capital reserve
Unit：Yuan
Increment in current Decrement in
Categories Opening amount Closing amount
period current period
Share premium 1,514,352,456.05 0.00 251,800,000.00 1,262,552,456.05
Other capital reserves 32,386,037.14 0.00 0.00 32,386,037.14
Total
Share premium 1,546,738,493.19 0.00 251,800,000.00 1,294,938,493.19
Explanations for capital reserve
51. Surplus reserves
Unit: Yuan
Increment in current Decrement in
Items Closing amount Opening amount
period current period
131
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Legal surplus reserves 147,070,297.60 0.00 0.00 147,070,297.60
Free surplus reserves
Reserve fund
Enterprise expansion fund
Others
Total 147,070,297.60 0.00 0.00 147,070,297.60
Explanations for surplus reserves used into equity, covering the deficit, and distributing dividends.
52 General risk preparations
Explanation for general risk preparation:
None
53. Undistributed profit
Unit：Yuan
Item Amount Proportion
Balance at the end of the year of 2011
815,506,493.66 --
(Before adjustment)
Total adjustment for the balance at the
0.00 --
beginning of the year of 2012
Balance at the beginning of the year of
815,506,493.66 --
2012 (After adjustment)
Add: Current distributable net profits
413,724,138.05 --
for owners of parent company
Less: Appropriation of statutory surplus
0.00
reserves
Appropriation of discretionary surplus
0.00
reserve
Appropriation of normal risk provision 0.00
Ordinary shares dividend payables 113,310,000.00
Ordinary shares dividend capitalized to
0.00
share capital
Undistributed profits as at 30 June
1,115,920,631.71 --
2012
Details of adjusting beginning retained undistributed profits:
1) Adjustments in Accounting Standards for Business Enterprises and related provision would influence
beginning retained undistributed profits of 0.00 Yuan.
2) Changes in accounting policies would influence beginning retained undistributed profits of 0.00 Yuan.
3) Corrections of important accounting errors would influence beginning retained undistributed profits of
0.00 Yuan.
4) Changes in combination range of same control would influence beginning retained undistributed
profits of 0.00 Yuan.
5) Other total adjustments would influence beginning retained undistributed profits of 0.00 Yuan.
Explanations for undistributed profits: for companies which initially publicly issue securities, if
accumulated profits are determined to share by new and old shareholders before issuing, it should be
explained clearly. If accumulated profits are determined to share by old shareholders before issuing,
audited profits owned by old shareholders in dividends payable should be explained clearly.
132
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54. Operating Revenues and Operating Costs
(1) Operating Revenues
Unit：Yuan
Item Amount of this period Amount of last period
Main Operating revenues 2,198,669,591.12 1,564,181,223.58
Other Operating revenues 29,139,611.57 19,116,446.24
Operating costs 573,199,355.13 405,155,605.30
(2) Main business (classified by industries)
√ Applicable, □Not applicable
Amount of this period Amount of last period
Name of products
Operating revenue Operating revenue Operating revenue Operating cost
Distilled spirit 2,153,757,133.65 530,668,071.69 1,515,785,982.31 358,960,409.73
Hotel services 35,947,124.71 22,448,505.99 32,246,050.22 19,670,090.63
Others 8,965,332.76 6,633,722.01 16,149,191.05 11,596,369.02
Totol 2,198,669,591.12 559,750,299.69 1,564,181,223.58 390,226,869.38
(3) Main business (classified by products)
√ Applicable, □ Not applicable
Unit：Yuan
Amount of this period Amount of last period
Name of products
Operating revenue Operating revenue Operating revenue Operating cost
High grade liquor 1,254,438,442.99 227,288,814.90 949,592,182.00 184,233,510.00
Mid-range wine 849,549,642.90 276,677,853.96 549,859,900.00 166,100,600.00
Cheap wine 49,769,047.76 26,701,402.83 16,333,900.00 8,626,300.00
others 44,912,457.47 29,082,228.00 48,395,241.27 31,266,459.65
合计 2,198,669,591.12 559,750,299.69 1,564,181,223.58 390,226,869.38
(4)Main business ( classified by districts)
√ Applicable, □ Not applicable
Unit：Yuan
Amount of this period Amount of last period
Name of districts
Operating revenue Operating revenue Operating revenue Operating revenue
North China 319,507,955.35 77,167,778.51 299,410,492.72 71,858,518.25
Central China 1,691,838,902.10 433,685,905.35 1,136,839,486.73 287,664,852.54
South China 187,212,938.97 48,858,747.33 127,931,244.13 30,703,498.59
International 109,794.70 37,868.50 0.00 0.00
Total 2,198,669,591.12 559,750,299.69 1,564,181,223.58 390,226,869.38
(5) Business Income of Top Five Customers of Company
Unit：Yuan
Proportion in overall business income of
Item Overall business income
company (%)
The first 168,322,037.78 7.56%
133
English Translation for Reference Only
The second 131,418,232.48 5.9%
The third 77,252,748.38 3.47%
The fourth 77,055,093.16 3.46%
The fifth 67,262,845.30 3.02%
Total 521,310,957.10 23.4%
Explanations for business income
55. Contract projects income
□ Applicable, √ Not applicable
Explanation for contract projects income:
56. Business tax and surtax
Unit：Yuan
Amount of last
Item Amount of this period Payment standards
period
Consumption tax 281,948,973.70 195,602,195.05
Business tax 3,613,623.20 2,110,970.16
Urban construction tax 38,978,297.01 20,820,284.86
Education surcharge 38,978,297.01 20,820,284.86
Resource tax
Flood protection fee 328,093.83 120,337.28
Total 363,847,284.75 239,474,072.21 --
Explanation for business tax and surtax:
57. Variable income of fair values
Unit: Yuan
Sources of variable income of fair values Amount of this period Amount of last period
Transaction monetary assets
Including: variable income of fair values
produced by derivative financial instruments
Transaction financial liabilities
Investment real estate measured by fair
values
Others
Total
Explanations for variable income of fair values
58. Investment incomes
(1) Investment income details
Unit: Yuan
Item Amount of this period Amount of last period
Long-term equity investment incomes
134
English Translation for Reference Only
accounted by cost method
Long-term equity investment incomes
accounted by equity method
Investment incomes produced in long-term
equity investment
Investment income in holding transaction
financial assets
Investment income in held-to-maturity
investment
Investment income in financial assets
available for sale
Investment income in disposing transaction
financial assets
Investment income in held-to-maturity
investment
Investment income in financial assets
available for sale
Others
Total
(2) Long-term equity investment income assessed by cost method
Unit: Yuan
Amount of last Reasons for the change of
Investee entities Amount of this period
period increase/decrease
Total --
(3) Long-term equity investment income accounted by equity method
Unit: Yuan
Amount of last Reasons for the change of
Investee entities Amount of this period
period increase/decrease
Total --
Explanations for investment income: if investment income is limited, it should be explained. If it does not
exist any investment income, it should be explained as well:
59. Asset impairment loss
Unit: Yuan
Item Amount of this period Amount of last period
1. Loss on bad debts 0.00 475,424.46
2. Loss on obsolete stocks 0.00 0.00
3. Loss from financial asset devaluation available
for sale
4. Loss from held-to-maturity investment
devaluation
135
English Translation for Reference Only
5. Long-term equity investment devaluation
6. Loss on investment real estate devaluation
7. Loss on fixed assets devaluation 0.00 0.00
8. Loss on project goods and material devaluation
9. Loss of devaluation on projects under
construction
10. Loss on capitalized biological assets
devaluation
11. Loss on oil gas assets devaluation
12. Loss on intangible assets devaluation
13. Loss on goodwill impairments
14. Others
Total 475,424.46
60. Non-Operating revenue
(1)
Unit: Yuan
Item Amount of this period Amount of last period
Gains from disposal of non-current assets 342,179.94 986,738.50
Including: Gains from disposal of fixed assets 342,179.94 704,354.36
Gains from disposal of intangible assets
Gains from debt restructuring
Gains from exchange of non-monetary assets
Donations
Government subsidies 200,000.00 0.00
Gains from penalties 2,855,826.04 2,979,764.58
Sale of waste 3,029,376.80 1,169,204.80
Accrued expenses non-payable 71,494.75 0.00
Others 2,092,195.01 781,081.85
Total 8,591,072.54 5,916,789.73
(2) Details of government subsidiaries
Unit: Yuan
Item Amount of this period Amount of last period Remark
Subsidy income 200,000.00 0.00
Total 200,000.00 0.00 --
Explanations for business income
61. Non-Operating revenue
Unit: Yuan
Item Amount of this period Amount of last period
Loss on disposal of non-current assets 303,137.32 122,757.19
136
English Translation for Reference Only
Including: Loss on disposal of fixed assets 303,137.32 122,757.19
Loss on disposal of intangible assets 303,137.32 122,757.19
Loss on debts restructuring
Loss on exchange of non-monetary assets
Donations
Compensation expenses 300,000.00
Others 603,874.23 163,431.17
Total 1,207,011.55 286,188.36
Explanations for non-Operating revenue
62. Income tax expenses
Unit: Yuan
Item Amount of this period Amount of last period
Current income tax in accordance with tax law and
141,815,064.98 105,889,060.04
related provisions
Adjustment of deferred income tax 259,463.59 502,861.21
Total 142,074,528.57 106,391,921.25
63. Calculation for Basic EPS and Diluted EPS
Amount of this period Amount of last period
Profit of this period
Basic EPS Diluted EPS Basic EPS Diluted EPS
Net profits attributable to 0.82 0.82 1.23 1.23
ordinary shareholders
Net profits attributable to 0.81 0.81 1.21 1.21
ordinary shareholders that
have deducted
extraordinary profits or
losses.
Basic Earnings Per Share =P0÷S
S=S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0-Sk
Including: P0 : is the net profits attributable to ordinary shareholders or net profits attributable to ordinary
shareholders that have deducted extraordinary profits or losses; S: is weighted average number of ordinary
shares outstanding during the period; S0 : is the total number of ordinary shares outstanding at the
beginning of the period; S1: is incremental ordinary shares issued as a result of the conversion of surplus to
ordinary shares or distribution of shares dividend; Si: is incremental ordinary shares issued as a result of
the conversion of a debt instrument to ordinary shares or issued new shares; Sj: Decrement shares that are
the number of ordinary shares bought back, etc; Sk: is the number of shrink stocks during the reporting
period; M0: is the number of month during the reporting period; Mi: is the accumulative months that is from
the next month of incremental shares to the month of end of reporting period; Mj is the accumulative
months that is from the next month of decrement shares to the month of end of reporting period.
Diluted Earnings Per Share =P1/(S0 ＋ S1 ＋ Si×Mi÷M0–Sj×Mj÷M0–Sk+ weighted average number of
increased ordinary shares from Options and warrants、Share options、Convertible debenture, etc)
Including: P1: is the net profits attributable to ordinary shareholders or net profits attributable to ordinary
shareholders that have deducted extraordinary profits or losses, and need to consider the effects of all
dilutive potential ordinary shares, as well as adjusted according to and
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English Translation for Reference Only
relevant policies.
64. Other comprehensive income
Unit: Yuan
Item Amount of this period Amount of last period
1. Gains (loss) from financial assets available for
sale
Deduct: income tax effects of financial assets
available for sale
Net amount of current gains and losses from previous
comprehensive income
Sub-total 0.00 0.00
2. Shares in other comprehensive income in invested
company according to equity method
Deduct: income tax effects of shares in other
comprehensive income in invested company
according to equity method
Net amount of current gains and losses from previous
comprehensive income
Sub-total 0.00 0.00
3. Gains (losses) from cash flow hedging tools
Deduct: income tax effects in cash flow hedging
tools
Net amount of current gains and losses from previous
comprehensive income
Adjustment of initial confirmed amount in arbitrage
project
Sub-total 0.00 0.00
4. Foreign currency translation differences
Deduct: net amount of disposal of foreign current
gains and losses
Sub-total
5.Others
Deduct: income tax effects in other comprehensive
income
Net amount of current gains and losses from previous
comprehensive income
Sub-total 0.00 0.00
Total
Explanations for other comprehensive income
65. Notes to cash flow statement
(1) Cash received related to other operating activities
Unit: Yuan
Item Amount
Security deposit 96,255,254.81
Government subsidiaries 200,000.00
138
English Translation for Reference Only
Interest income 27,610,437.31
Others 16,891,291.24
Total 140,956,983.36
Explanations for cash received related to other operating activities
(2) Cash paid related to other operating activities
Unit: Yuan
Item Amount
Cash paid in selling expenses and administrative expenses 189,452,890.42
Security deposit 6,355,035.42
Others 10,484,273.09
Total 206,292,198.93
Explanations for cash paid related to other operating activities
(3) Cash received related to other investment activities
Unit: Yuan
Item Amount
Total
Explanations for cash received related to other investment activities
(4) Cash paid related to other investment activities
Unit: Yuan
Item Amount
Total
Explanations for cash paid related to other investment activities
(5) Cash received related to other financial activities
Unit: Yuan
Item Amount
Total
Explanations for cash received related to other financial activities
(6) Cash received related to other financial activities
Unit: Yuan
Item Amount
Total
Explanations for cash received related to other financial activities
66. Supplemental information for cash flow statement
(1) Supplemental information for cash flow statement
Unit: Yuan
Item Amount of this period Amount of last period
139
English Translation for Reference Only
1. Reconciliation of net profit to net cash flows
-- --
generated from operating activities
Net profit 413,724,138.05 287,947,478.86
Add: Provision for impairment of assets 475,424.46
Depreciation of fixed assets, of oil-gas assets, of
26,977,720.03 26,374,377.97
productive biological assets
Amortization of intangible assets 3,582,744.39 2,311,246.20
Amortization of long-term deferred expense 2,499,787.36 442,694.08
Losses on disposal of property, plant and
equipment, intangible assets and other -39,042.62 74,861.78
long-term assets (gains: negative)
Loss on retirement of fixed assets (gains: negative) 0.00 0.00
Financial cost (gains: negative) 0.00 0.00
Investment loss (gains: negative) 0.00 0.00
Decrease in deferred income tax assets (gains:
0.00 0.00
negative)
Increase in deferred income tax liabilities
259,463.59 502,861.21
(decrease: negative)
Decrease in inventory (gains: negative) 0.00 0.00
Decrease in accounts receivable from operating
42,094,428.92 -28,976,495.12
activities (gains: negative)
Increase in payables from operating activities
-61,706,305.54 -324,079,257.94
(decrease: negative)
Other -279,458,807.46 230,012,730.08
Net cash flows generated from operating activities 0.00 0.00
II. Investing and financing activities that do not
involving 147,934,126.72 195,085,921.58
cash receipts and payment:
Conversion of debt into capital -- --
Convertible bond due within one year 0.00 0.00
Fixed assets financed by finance leases 0.00 0.00
III. Net increase in cash and cash equivalents 0.00 0.00
Closing balance of cash -- --
Less: Opening balance of cash 1,824,743,757.27 663,079,295.66
Closing balance of cash equivalents 2,082,032,491.33 643,231,404.42
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -257,288,734.06 19,847,891.24
(2) Relevant information gained during the report or through disposal of the subsidiary and other
business units
Unit: Yuan
Item Amount of this period Amount of last period
1. Relevant information gained during the report or -- --
through disposal of the subsidiary and other
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English Translation for Reference Only
business units
I. Price gained from subsidiary and other business
0.00 0.00
units
II. Cash or cash equivalents gained from subsidiary
0.00 0.00
and other business units
Less: cash and cash equivalents possessed by
0.00 0.00
subsidiary and other business units
III. Net cash gained from subsidiary and other
business units
IV. Net assets gained from subsidiary 0.00 0.00
current assets 0.00 0.00
non-current assets 0.00 0.00
current liabilities 0.00 0.00
non-current liabilities 0.00 0.00
2. Disposal of relevant information in subsidiary
-- --
and other business units
I. Disposal of price in subsidiary and other
0.00 0.00
business units
II. Disposal of cash and cash equivalents in
0.00 0.00
subsidiary and other business units
Less: cash and cash equivalents in possessed by
0.00 0.00
subsidiary and other business units
III. Disposal of cash net amount of subsidiary and
other business units
IV. Disposal of net assets of subsidiary 0.00 0.00
Current assets 0.00 0.00
Non-current assets 0.00 0.00
Current liabilities 0.00 0.00
Non-current liabilities 0.00 0.00
(3) Cash and cash equivalents
Unit: Yuan
Item Closing amount Opening amount
I. Cash 1,824,743,757.27 2,082,032,491.33
Including: Cash on hand 114,599.85 101,826.09
Bank deposit on demand 1,824,629,157.42 2,081,911,723.03
Other monetary funds on demand 18,942.21
Central bank deposit on demand
Deposits in other banks
Call loans from other banks
II. Cash equivalent
Including: Bond investment due in three months 0.00 0.00
III. Closing balance of cash and cash equivalents 1,824,743,757.27 2,082,032,491.33
Supplementary documents for cash flow statement
67. Notes on projects on statement of change in equity
Introduction on “other” item names when regulating the year end balance of last year and amount
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English Translation for Reference Only
adjustment, and retroactive adjustment incorporated and produced by the enterprise under the same
control:
(VIII). Accounting treatment of asset securitization business
1. Introduction on main transaction arrangement of asset securitization and clauses of accounting
treatment and bankruptcy remoteness
2. The Company does not have the control power, but of which in principle the company bears the
risk with special purpose.
Unit: Yuan
Operating
Terminal Terminal total Terminal net Net profits in
Name revenue in Remarks
general assets liabilities assets current period
current period
(IX). Related party and related Transaction
1. Information related to parent company of the Company
Unit: Yuan
Proporti
Proporti on of
on of voting
share rights
The
held by owned
Name of Name of ultimate
Registra Legal parent by Organiz
parent Relation Busines parent Currenc controll
Type tion represen compan parent ation
compan ship s scope compan y er of the
place tative y compan code
y y Compan
against y
y
the against
Compan the
y (%) Compan
y (%)
Beverag
e,
Constru Anhui
ction Provinc
Controll State-o
Anhui material 3,533,80 e,
Gujing ing wned 53.893 53.893 151947
Haozho Yu Lin s, and 0,000,00 Haozho
Group sharehol enterpris % % 437
u plastic 0.00 u City
der es
producti govern
ons ment
manufac
ture
Explanations for details of the Company’s parent company
Legal Proportion Proportion
Business Registration of Business Registered Organization
Name Type represent Currency of holding of voting
Type place scope capital code
ative shares (%) rights (%)
Haozhou Gujing Holding Limited Bozhou, Anhui Business 8,486.00 100% 100%
142
English Translation for Reference Only
Sales Co., Ltd subsidiary company trading
Hefei Gujing Trade Holding Limited Bozhou, Anhui Business
1,000.00 100% 100%
Co., Ltd subsidiary company trading
Haozhou Gujing Bozhou, Anhui
Holding
Transportation Co., Limited Transportation 695.00 100% 100%
subsidiary
Ltd company
Haozhou Gujing Holding Limited Bozhou, Anhui
Manufacture 8,666.00 100% 100%
Glass Co., Ltd subsidiary company
Haozhou Gujing Bozhou, Anhui
Holding
Waste Reclamation Limited Recycled 100.00 100% 100%
subsidiary
Co., Ltd company
Anhui Jinyunlai Bozhou, Anhui
Holding Ads
Culture & Media Limited 200.00 100% 100%
subsidiary marketing
Co.,Ltd. company
Haozhou Gujing Holding Limited Bozhou, Anhui
Manufacture 3,000.00 100% 100%
Packaging Co., Ltd subsidiary company
2. Information on subsidiaries of the Company
Unit: Yuan
143
English Translation for Reference Only
3. Information on co-operated or joint operated of the Company
Unit: Yuan
Proportio Business Net
Proportio
Legal n of Final Final income income
Business Registrati Business Registere n of Final net Relations Organizat
Item represent Currency holding total total for for
Type on place scope d capital voting assets hip ion code
ative shares assets liability current current
rights (%)
(%) period period
1.
co-operat -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
ed
2. joint
-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
operated
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4. Information on other related parties
Unit: Yuan
Name of other related parties Relationship with the Company Organization code
Affiliated enterprise of controlling
Anhui Ruifuxiang Food Co., Ltd 77908892-2
shareholder and actual controller
Anhui Ruijing Trade Travel (Group) Affiliated enterprise of controlling
14912443-1
Co., Ltd shareholder and actual controller
Affiliated enterprise of controlling
Haozhou Hotel Co., Ltd 554599270
shareholder and actual controller
Anhui East Tai Ji Tourism Affiliated enterprise of controlling
771139617
Development Co., Ltd shareholder and actual controller
Affiliated enterprise of controlling
Haozhou Gujing Hotel Co., Ltd 151940032
shareholder and actual controller
Anhui Gujing Real Estates Group Affiliated enterprise of controlling
697383485
Co., Ltd. shareholder and actual controller
East Ruijing Enterprise Investment Affiliated enterprise of controlling
768363191
Development Co., Ltd shareholder and actual controller
Affiliated enterprise of controlling
Anhui Hengxin Pawn Co., Ltd 752994458
shareholder and actual controller
Haozhou Ruineng Thermoelectricity Affiliated enterprise of controlling
560699980
Co., Ltd shareholder and actual controller
Explanations for other related parties
5. Related transactions
(1) Goods purchased and service received
Amount of this period Amount of last period
Proporti Proporti
Pricing on in on in
Name of Content of related
principle of transacti transacti
company transaction Amount Amount
related parties ons of ons of
the same the same
kind kind
Anhui Ruifuxiang
Purchase of alcohol Market price 45,514,889.88 99.39% 32,034,447.04 100%
Food Co., Ltd
Food and
Haozhou Hotel
accommodation Market price 280,000.00 0.61% 0.00 0%
Co., Ltd
services
Sales of goods and rendering of service
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English Translation for Reference Only
Amount of this period Amount of last period
Proporti Proporti
Pricing on in on in
Name of Content of related
principle of transacti transacti
company transaction Amount Amount
related parties ons of ons of
the same the same
kind kind
Sales of small sized Market price
Gujing Group 6,098.49 0.28% 5,814.89 0.02%
materials
Providing catering Market price
Gujing Group 107,678.00 4.86% 0.00 0%
services
Anhui Ruifuxiang Market price
Sale of white spirit 76,950.00 3.48% 0.00 0%
Food Co., Ltd
Haozhou Hotel Market price
Sale of white spirit 35,815.00 1.62% 0.00 0%
Co., Ltd
Anhui Gujing Market price
Real Estate Group Sale of white spirit 45,000.00 2.03% 226,923.06 0.7%
Co., Ltd
Haozhou Ruineng Sale of white spirit of
Thermoelectricity 27,720.00 1.25% 0.00 0%
Co., Ltd
(2) Related deposit/contract
Deposit/contract table of company
Unit: Yuan
Impacts
deposit/co
Involved Pricing on
Start date End date ntract
Name of amount evidence company
Name of Consigned Consigned of of profits
Consignee for for by
consignor/ /contracte /contracte consignm consignm confirmed
/contracto Consigned deposit/co consignm
contractee d assets d category ent/contra ent/contra during the
r /contracte ntract ent and
ct ct report
d assets profits contract
period
profits
Consignment/contract table of company
Information on Related deposit/contract
Unit: Yuan
Name of Name of Consignin Involved Consigned Start date End date of Pricing deposit/contra Impacts on
consignor Consigne g/contract amount /contracte of consignmen evidence for ct profits company
/contracte e/contract ed assets for d category consignme t/contract deposit/contrac confirmed by
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English Translation for Reference Only
e or Consigne nt/contract t income during the consignmen
d/contract report period t and
ed assets contract
income
(3) Related leasing
Details of leasing
The lease
Impacts
Informatio Leased Pricing income
Category on
Name of Name of n on assets Start date end date evidence confirmed
of leased company
lessor lessee leased involving of lease of lease of lease in the
assets by lease
assets amount income report
income
period
Houses
Gujing The Market 900,000.0
and 2010-6-1 2020-5-31
Group Company price 0
buildings
Houses
Gujing Gujing Market 250,000.0
and 2010-6-1 2020-5-31
Group Inn price 0
buildings
Details of renting
The lease
Impacts
Informatio Leased Pricing rent
Category on
Name of Name of n on assets Start date end date evidence confirmed
of leased company
lessor lessee leased involving of lease of lease of lease in the
assets by lease
assets amount rent report
income
period
(4) Details of related party guarantee
Unit: Yuan
Execution
Guarantee
Guarantor Secured party Starting date Ending date accomplished or
amount
not
Explanations for related party guarantee
(5) Inter-bank lending capital by related party
Unit: Yuan
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Inter-bank lending
Related party Start date end date Notes
amount
inter-bank borrowing transaction
inter-bank lending transaction
(6) Details of asset deal and debt restructuring of related party
Unit: Yuan
Amount for current period Amount for last period
Occupancy Occupancy
Pricing type
Transacti of of
Transaction and decision
on type proportion proportion
Related party content by procedure for
by related Amount amount of Amount amount of
related party related party
party similar similar
transaction
transaction transaction
(%) (%)
(7) Other related transactions
6. Receivables from and payables to related parties
Receivables from related parties
Item Name Closing amount Opening amount
Accounts receivable Gujing Group 13,725.06 38,485.49
Anhui Ruifuxiang
Accounts receivable 0.00 2,000.00
Food Co., Ltd
East Ruijing
Enterprise
5,704.00
Accounts receivable Investment 0.00
Development Co.,
Ltd
Other accounts
receivable Gujing Group 6,098.49 0.00
Payables to related parties
Item Name Closing amount Opening amount
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English Translation for Reference Only
Anhui Ruijing Trade
Accounts payable 12,825.37 105,999.42
(Group) Co., Ltd
Accounts payable Gujing Group 0.00 180,311.93
Anhui Ruifuxiang Food
Accounts payable 2,000.00 200.00
Co., Ltd
Accounts payable Haozhou Hotel Co., Ltd 0.00 10,360.00
Anhui East Tai Ji Tourism
Accounts payable 3,000.00 8,000.00
Development Co., Ltd
Anhui East Tai Ji Tourism
Accounts receivable in advance 0.00 10,000.00
Development Co., Ltd
(X) Share-based payment
1. General circumstances for share-based payment
Unit: Yuan
Total amount for all equity instruments
awarded in this period by the company
Total amount for all equity instruments
executed in this period by the company
Total amount for all equity instruments
expired in this period by the company
Scope of executive price and remaining
period of contract for exterior share
option issued by the company at end of
term
Scope of executive price and remaining
period of contract for other equity
instruments issued by the company at
end of term
2. Introduction on equity-settled share-based payment
Unit: Yuan
Determining method of fair value of equity instrument
on date of grant
Determining method of best estimation for the quantity
of executive equity instruments
Causes for large differences of estimation between the
current period and last period
Accumulated amount by equity-settled share-based
payment among the capital reserve
Total expenses determined through equity-settled
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English Translation for Reference Only
share-based payment
Introduction on equity-settled share-based payment
3. Introduction on cash-settled share-based payment
Unit: Yuan
Determining method for fair value of liabilities
determined by company-bore, share or other equity
instrument-based calculation.
Accumulative liability amount produced by cash-settled
share-based payment among liabilities
Total expenses determined through cash-settled
share-based payment
Introduction on cash-settled share-based payment
4. Service based on share-based payment
Unit: Yuan
Total amount for staff service exchanged based on
share-based payment
Total amount for other service exchanged based on
share-based payment
5. Amendment and termination of share-based payment
(XI). Contingencies
1. Contingent liability and financial impacts caused by pending action or arbitration
Up to 30 June 2012, there is no contingency event that needs to be disclosed.
2. Contingent liability and financial impacts caused by provision of guarantee for other units
Other liabilities or accounting influences:
(XII). Commitment events
1. Significant commitment events
As to 30 Jun. 2012, there are no significant commitment events of the group.
2. Performance of commitment in earlier stage
None.
(XIII). Events after balance-sheet-date
1. Important events after the balance sheet date
Unit: Yuan
Influence number of reasons not being able to
Item Content financial status and estimate the influence
business achievements number
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English Translation for Reference Only
2. Introduction on future distribution of profits of balance sheet
Unit: Yuan
Profits and dividends about to be distributed
Profits and dividends released upon approval and
consideration
3. Explanation for future items of other balance sheet
Until November 8, 2011, with agreement from shareholders of the Company’s subsidiary- Hefei Trade Co., Ltd,
Hefei Trade was to establish liquidation group for cancellation. Cancellation of tax registration was completed on
December 16, 2011. As at the reporting date, cancellation of Hefei Trade has been completed.
As at the reporting date, there’s no other significant event after the balance sheet date except the abovementioned event.
(XIV) Explanation for other important events
1. Exchange of non-monetary assets
None.
2. Debt restructuring
None.
3. Enterprise incorporation
None.
4. Lease
None.
5. Convertible Financial instruments into shares at end of term released externally
None.
6. Major content and significant changes on annuity schedule
None.
7. Other important items needed to be disclosed
None.
(XV) Explanation on major projects of financial statement in parent company
1. Accounts receivable
(1) Accounts receivable
Unit: Yuan
Category Closing balance Opening balance
151
English Translation for Reference Only
Book balance Bad debt reserves Book balance Bad debt reserves
Prop Propor Propor Propor
Amount ortio Amount tion Amount tion Amount tion
n(%) (%) (%) (%)
Debts receivable for
significant amount and
accounting and
0.00 0% 0.00 0% 0.00 0% 0.00 0%
drawing for provision
of bad debts of single
item
Debts receivable accounting and drawing for provision of bad debts in the combination
Combination for
6,666,328.76 100% 603,616.83 9.05% 2,461,104.32 100% 603,616.83 24.53%
related party
Combination by
0.00 0% 0.00 0% 0.00 0% 0.00 0%
account receivable age
Sub-total for
6,666,328.76 -- 603,616.83 -- 2,461,104.32 -- 603,616.83 --
combination
Debts receivable for
insignificant amount
and accounting and
6,666,328.76 100% 603,616.83 9.05% 2,461,104.32 100% 603,616.83 24.53%
drawing for provision
of bad debts of single
item
In total 0.00 0% 0.00 0% 0.00 0% 0.00 0%
Explanations for amount receivable:
Accounts receivable with insignificant amount but being individually withdrawn bad debt provision
□Applicable, √ Not applicable
In combination, accounts receivable for bad debts by aging method:
√ Applicable, □ Not applicable
Unit: Yuan
Opening amount Opening balance
Book balance Book balance
Aging Propor Propor
Bad debt Bad debt
Amount tion Amount tion
(%) (%)
Within 1 year
Including: -- -- -- -- -- --
within 6 0.00 0% 0.00 1,873,333.32 76.12 18,733.33
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English Translation for Reference Only
months %
6 months to
6,080,557.76 91.21% 85,166.67 0.00 0% 0.00
1 year
Sub-total:
76.12
within 1 6,080,557.76 91.21% 85,166.67 1,873,333.32 18,733.33
%
year
1-2 years 0.00 0% 0.00 0.00 0% 0.00
2-3 years 134,641.68 2.02% 67,320.84 5,775.00 0.23% 2,887.50
Over 3 23.65
451,129.32 6.77% 451,129.32 581,996.00 581,996.00
years %
3-4 years
4-5 years
Over 5
years
Total 6,666,328.76 -- 603,616.83 2,461,104.32 -- 603,616.83
In combination, accounts receivable for bad debts by balance proportion:
□Applicable, √ Not applicable
In combination, accounts receivable for bad debts by other methods:
□Applicable, √ Not applicable
Accounts receivable for bad debts with not large amount but being individually withdrawn bad debt provision
□Applicable, √ Not applicable
(2) The receivables transferred back or taken back during the report period
Unit: Yuan
Accumulate the
amount for accounted
Reasons for Evidence of
and drew provisions
transferring back determining the Amount transferred
Content for receivables for bad debts prior to
or taking back original provision for back or taken back
transferring back or
receivables bad debts
taking back
receivables
Total -- -- --
Accounting and drawing of provisions for bad debts of receivables with significant or insignificant amount for
single item separately undertaken impairment test at end of term:
Accounting and
Content for
Book balance Book balance drawing proportion Reasons
receivables
(%)
153
English Translation for Reference Only
Total -- --
Introductions on receivables with insignificant amount on single item but whose combination with large risk upon
combination by credit risks.
(3) The receivables of actual offset in the report period
Unit: Yuan
Generated by
Name of Nature of
Date of offset Amount of offset Reasons of offset related
company receivables
transactions?
Total -- -- 0.00 -- --
(4) Shareholder units holding 5% (including 5%) or above of voting stock of the receivables in the report
period
□Applicable, √ Not applicable
(5) Nature or content of other receivables with larger amount
None.
(6) The top 5 units of amount regarding receivables
Occupancy rate of the
Relationship with the
Item Amount Period total amount of
Company
receivables (%)
Gujing Glass Co., Ltd Subsidiary 6,080,557.76 1 年以内 91.21%
Huaiyuan
Non-related party 490,545.00 2-3 年 7.36%
Changxianfeng
Anhui Sanbao Feed
Non-related party 95,226.00 3 年以上 1.43%
Co., Ltd
Total -- 6,666,328.76 -- 100%
(7) Receivables for related party
Unit: Yuan
Relationship with the Occupancy rate of the total
Name of units Amount
company amount of receivables (%)
In total --
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(8) Transferred amount receivable not in accordance with determination conditions is 0.00 Yuan.
(9) In case of asset securitization based on the subject matter of receivables, relevant transaction
arrangement must be simply introduced.
None.
2. Other receivables
(1) Other receivables
Unit: Yuan
Opening amount Opening balance
Book balance Bad debt Book balance Bad debt
Categories Prop
Prop Prop Prop
ortio
Amount ortio Amount ortio Amount ortio Amount
n
n (%) n (%) n (%)
(%)
Debts receivable for
significant amount and
18.5 100 17.22 51,109,940.5 94.2
accounting and drawing 51,109,940.55 51,109,940.55 54,205,281.87
% % % 5 9%
for provision of bad
debts of single item
Debts receivable accounting and drawing for provision of bad debts in the combination
Ageing portfolio 82.78
225,216,064.88 81.5% 27,726.20 0% 260,568,323.84 27,726.20 0.01%
%
Sub-total for 81.5 260,568,323.8 82.78 0.01
225,216,064.88 27,726.20 27,726.20
combination % 4 % %
Debts receivable for
insignificant amount and
accounting and drawing 0.00 0% 0.00 0.00 0% 0.00 0%
for provision of bad
debts of single item
314,773,605.7 51,137,666.7
Total 276,326,005.43 -- 51,137,666.75 -- -- --
1 5
Explanations for accounts receivable:
Accounts receivable for bad debts but being individually withdrawn bad debt provision
□Applicable, √ Not applicable
In combination, accounts receivable of bad debts by aging analysis methods
√Applicable, □Not applicable
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English Translation for Reference Only
Unit: Yuan
Opening amount Opening balance
Book balance Book balance
Age Propor Propor
Bad debt Bad debt
Amount tion Amount tion
(%) (%)
Within 1 year
Including: -- -- -- -- -- --
within 6 99.82 99.91
224,799,708.48 9,467.46 260,330,354.49 9,741.97
months % %
6 months to 1
360,030.40 0.16% 10,826.14 152,254.05 0.06% 7,612.70
year
Subtotal: 99.98 99.97
225,159,738.88 20,293.60 260,482,608.54 17,354.67
within 1 year % %
1-2 years 54,326.00 0.02% 5,432.60 83,715.30 0.03% 8,371.53
2-3 years 0.00 0% 0.00 0.00 0% 0.00
Over 3 years 2,000.00 0% 2,000.00 2,000.00 0% 2,000.00
3-4 years
4-5 years
Over 5 years
Total 225,216,064.88 -- 27,726.20 260,568,323.84 -- 27,726.20
In combination, accounts receivable for bad debts by balance proportion:
□Applicable, √ Not applicable
In combination, accounts receivable for bad debts by other methods:
□Applicable, √ Not applicable
Accounts receivable for bad debts with not large amount but being individually withdrawn bad debt provision
□Applicable, √ Not applicable
(2) The receivables transferred back or taken back during the report period
Unit: Yuan
Accumulate the
Reasons for Evidence of amount for accounted
transferring back determining the and drew provisions Amount transferred
Content for receivables
or taking back original provision for for bad debts prior to back or taken back
receivables bad debts transferring back or
taking back
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English Translation for Reference Only
receivables
Receive
Bankruptcy
bankruptcy
Minfa Securities liquidation 9,384,502.02 3,095,341.32
liquidation
procedures
expenses
Total -- -- 9,384,502.02 --
Accounting and drawing of provisions for bad debts of receivables with significant or insignificant amount for
single item separately undertaken impairment test at end of term:
Accounting and
Content for
Book balance Book balance drawing proportion Reasons
receivables
(%)
Total -- --
Introductions on receivables with insignificant amount on single item but whose combination with large risk upon
combination by credit risks.
(3) The receivables of actual offset in the report period
Unit: Yuan
Generated by
Name of Nature of
Date of offset Amount of offset Reasons of offset related
company receivables
transactions?
In total -- -- 0.00 -- --
Introduction on offset for receivables
Receivables without offset in the report period of the company
(4) Shareholder units holding 5% (including 5%) or above of voting stock of the receivables in the report
period
√ Applicable,□Not applicable
The beginning of the period number
The final number
Unit name Provision for bad Provision for bad
Book balance debt amount Book balance debt amount
Gujing Group 6,098.49 0.00 0.00 0.00
Totol 6,098.49 0.00 0.00 0.00
(5) Nature or content of other receivables with larger amount
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None.
(6) Top 5 entities on accounts receivable
Unit: Yuan
Occupancy rate of the
Relationship with the
Name Amount Period total amount of
Company
receivables (%)
The Company’s
Shanghai Jinhao 171,500,000.00 Borrow money 62.06%
subsidiary
The Company’s Payment of ads in
Jinyunlai 35,115,331.00 12.71%
subsidiary advance
Security deposit of
Hengxin Securities Non-related party 29,502,438.53 10.68%
national debt
Security deposit of
Jianqiao Securities Non-related party 12,223,000.00 4.42%
national debt
Security deposit of
Minfa Securities Non-related party 9,384,502.02 3.4%
national debt
Total -- 257,725,271.55 -- 93.27%
(7) Details of amount receivable from related parties
Unit: Yuan
Relationship with the Occupancy rate of the total
Name Amount
company amount of receivables (%)
Total --
(8) Transferred amount for the receivables non-conforming to the final terms
(9) In case of asset securitization based on the subject matter of receivables, relevant transaction
arrangement must be simply introduced.
None.
3. Long-term equity investment
Unit: Yuan
accounti Initial Increasi Shareho Voting Reasons Depreci Account Cash
Opening Closing
Investee ng investm ng or lding power for ation ing and dividend
balance balance
method ent cost decreasi proporti proporti inconfor reserves drawing s for this
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ng on for on for mity deprecia period
amount investee investee between tion
(%) (%) Shareho reserves
lding for this
proporti period
on and
Voting
power
proporti
on
Gujing Cost 84,864,49 84,864,49 84,864,4
0.00 100% 100% 0.00 0.00 0.00
Sales method 7.89 7.89 97.89
Gujing
Motor Cost 6,875,743 6,875,743 6,875,74
0.00 100% 100% 0.00 0.00 0.00
Transpo method .00 .00 3.00
rtation
Gujing Cost 85,793,66 65,795,66 19,998,0 85,793,6
100% 100% 0.00 0.00 0.00
Glass method 6.00 6.00 00.00 66.00
Hefei Cost 9,900,000 9,900,000 9,900,00
0.00 100% 100% 0.00 0.00 0.00
Trading method .00 .00 0.00
Shangha Cost 49,906,85 49,906,85 49,906,8
0.00 100% 100% 0.00 0.00 0.00
i Jinhao method 4.63 4.63 54.63
Gujing Cost 648,646.8 648,646.8 648,646.
0.00 100% 100% 0.00 0.00 0.00
Inn method 0 0 80
Gujing
Cost 30,000,00 30,000,00 30,000,0
Packagi 0.00 100% 100% 0.00 0.00 0.00
method 0.00 0.00 00.00
ng
267,989,4 247,991,4 19,998,0 267,989,
Total -- -- -- -- 0.00 0.00 0.00
08.32 08.32 00.00 408.32
Explanations for long-term equity investment
4. Operating revenue and cost
(1) Operating revenue
Unit: Yuan
Item Amount of this period Amount of last period
Main Operating revenue 1,350,821,123.47 909,857,567.78
Other Operating revenue 23,170,239.16 16,339,919.26
Operating cost 552,748,073.80 393,587,049.61
Total 821,243,288.83 532,610,437.43
(2)Main business(classified by industries)
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□Applicable, √ Not applicable
(3)Main business(classified by products)
□Applicable, √ Not applicable
Unit: Yuan
Amount of this period Amount of last period
Name of products
Operating revenue Operating cost Operating revenue Operating cost
White spirit 1,350,821,123.47 529,460,583.06 909,857,567.78 377,328,510.59
Total 1,350,821,123.47 529,460,583.06 909,857,567.78 377,328,510.59
(4) Main business (classified by districts)
□Applicable, √ Not applicable
(5) Details of Operating revenue from top five clients:
Unit: Yuan
Proportion in
overall
Name of customer Overall business income business
income of
company (%)
No.1 1,341,913,469.45 97.67%
No.2 965,563.76 0.07%
No.3 149,384.62 0.01%
No.4 65,769.24 0%
No.5 38,461.52 0%
Total 1,343,132,648.59 97.75%
Business income in the reporting period has increased by 48.35% compared to last year, mainly due to increase of
sales and prices.
5. Investment income
(1) Details of investment income
Unit: Yuan
Item Amount of this period Amount of last period
Long-term equity investment income assessed by 0.00 0.00
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English Translation for Reference Only
cost method
Long-term equity investment income assessed by
0.00 0.00
equity method
Investment income from long-term equity
0.00 299,516.89
investment disposal
Investment income during holding trading financial
0.00 0.00
assets
Investment income for holding investment to
0.00 0.00
expiration date
Investment income during holding available-for-sale
0.00 0.00
financial assets
Investment income from trading financial assets
0.00 0.00
disposal
Investment income for holding investment to
0.00 0.00
expiration date
Investment income from available-for-sale financial
0.00 0.00
assets etc.
Others 0.00 0.00
In total 299,516.89
(2)Long-term equity investment income measured by cost method
Unit: Yuan
Amount of this Amount of last Reasons for the change of
Investee
period period increase/decrease
Total 0.00 0.00 --
(3)Long-term equity investment income measured by equity method
Unit: Yuan
Amount of this Amount of last Reasons for the change of
Investee
period period increase/decrease
Total 0.00 0.00 --
Explanations for investment income:
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6. Supplemental information for cash flow statement
Unit: Yuan
Item Amount of this period Amount of last period
1. Reconciliation of net profit to net cash flows generated
-- --
from operating activities
Net profit 86,054,518.24 103,385,979.87
Add: Provision for impairment of assets 115,880.47
Depreciation of fixed assets, of oil-gas assets, of
14,095,109.87 11,280,687.88
productive biological assets
Amortization of intangible assets 1,956,249.75 651,701.76
Amortization of long-term deferred expense 938,358.66 442,694.08
Losses on disposal of property, plant and equipment,
intangible assets and other 0.00 0.00
long-term assets (gains: negative)
Loss on retirement of fixed assets (gains: negative) 0.00 0.00
Financial cost (gains: negative) 0.00 0.00
Investment loss (gains: negative) 0.00 0.00
Decrease in deferred income tax assets (gains: negative) 0.00 -299,516.89
Increase in deferred income tax liabilities (decrease:
224,750.00 -28,970.12
negative)
Decrease in inventory (gains: negative) 0.00 0.00
Decrease in accounts receivable from operating activities
52,535,836.11 -20,559,558.30
(gains: negative)
Increase in payables from operating activities (decrease:
-34,328,188.74 -282,223,313.87
negative)
Other -6,056,875.37 456,437,762.72
Net cash flows generated from operating activities
II. Investing and financing activities that do not involving
115,419,758.52 269,203,347.60
cash receipts and payment:
Conversion of debt into capital -- --
Convertible bond due within one year 0.00 0.00
Fixed assets financed by finance leases 0.00 0.00
III. Net increase in cash and cash equivalents 0.00 0.00
Closing balance of cash -- --
Less: Opening balance of cash 1,588,912,478.60 590,395,007.96
Closing balance of cash equivalents 1,885,937,555.53 480,737,398.56
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Add: Closing balance of cash equivalents 0.00 0.00
Less: Opening balance of cash equivalents 0.00 0.00
Net increase in cash and cash equivalents -297,025,076.93 109,657,609.40
7. Assets and liabilities from counter purchasing in assessed value
Unit: Yuan
Name of assets and liabilities in assessed value Assessed value Original book value
Assets
Liabilities
(XVI) Supplemental information
1. Return on equity (ROE) and earnings per share (EPS)
Unit: Yuan
Weighted average ROE EPS(Yuan/share)
Profit as of reporting period
(%) EPS-basic EPS-diluted
Net profit attributable to common
14.21% 0.82 0.82
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
14.02% 0.81 0.81
deduction of non-recurring profit and
loss
2. Abnormalities in main items in financial statements of the Company and reasons thereof
(1) Notes receivable at the period-end were up by 27.50% as compared with the opening amount, which was
mainly due to increase of income in the reporting period and notes receivable were adopted more often for
settlement;
(2) Accounts receivable at the period-end were up by 27.68% as compared with the opening amount, which was
mainly due to reflow of corporate sales income;
(3) Interests receivable at the period-end were up by 93.01% as compared with the opening amount, which was
mainly due to interests of fixed deposits;
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(4) Other amounts receivable at the period-end were up by 160.71% as compared with the opening amount, which
was mainly due to advertising expenses in advance;
(5) Project under construction at the period-end were up by 71.20% as compared with the opening amount, which
was mainly due to Construction costs of application projects and self-invested projects in the reporting period;
(6) Intangible assets at the period-end were up by 30.92% as compared with the opening amount, which was
mainly due to increase of land for application projects and self-invested projects;
(7) Long-term deferred expenses at the period-end were down by 25.83% as compared with the opening amount,
which was mainly due to amortization for the reporting period;
(8) Notes payable: at the period-end were up by 10,000,000.00 Yuan, which was mainly due to improving whole
income and issuing bank acceptance bill.
(9) Accounts payable at the period-end were down by 30.77% as compared with the opening amount, which was
mainly due to payment of materials in the reporting period;
(10) Accounts received in advance at the period-end were down by 39.23% as compared with the opening amount,
which was mainly due to expansion of sales in the reporting period
(11) Other payables at the period-end were up by 16.89% as compared with the opening amount, which was
mainly due to increase of security deposit of controlled prices and projects under construction
(12) Capital reserves at the period-end were down by 16.28% as compared with the opening amount, which was
mainly due to capital reserve into equity in the reporting period.
(13) Operating revenue in the reporting period was up by 40.71% year on year, which was mainly due to increase
of the distilled spirit sales volume;
(14) Operating cost in the reporting period was up by 41.48% year on year, which was mainly due to the sales
increase in the reporting period;
(15) Business taxes and surcharges in the reporting period were up by 51.94% year on year, which was mainly due
to the sales, value-added tax and consumption tax increase in the reporting period;
(16) Selling expenses in the reporting period were up by78.43% year on year, which was mainly due to a higher
input for advertising and market expansion in the reporting period;
(17) Administrative expenses in the reporting period were down by 2.869 times year on year, which was mainly
due to increase of interest income from term deposits and structural deposits, as well as services fees charged on
notes in the reporting period;
(18) Income tax expenses in the reporting period were up by 33.54% year on year, which was mainly due to
increase of the total profit for the reporting period.
(19)Net operating cash flow: reporting period year-on-year reduction of 24.17%, mainly clearing way to increase
pay taxes, annual payment due.
9. Documents Available for Reference
Documents Available for Reference
Chairman of Board of Directors
Approval date:
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English Translation for Reference Only
165
