ANHUI GUJING DISTILLERY COMPANY LIMITED
INTERIM REPORT 2019
August 2019
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Anhui Gujing Distillery Company Limited (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Liang Jinhui, the Company’s legal representative, Ye Changqing, the Company’s Chief
Accountant, and Zhu Jiafeng, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Any plans for the future and other forward-looking statements mentioned in this Report and
its summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
The Company has no interim dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part I Important Notes, Table of Contents and Definitions 2
Part II Corporate Information and Key Financial Information 5
Part III Business Summary 8
Part IV Operating Performance Discussion and Analysis 9
Part V Significant Events 20
Part VI Share Changes and Shareholder Information 27
Part VII Preferred Shares 31
Part VIII Directors, Supervisors and Senior Management 32
Part IX Corporate Bonds 33
Part X Financial Statements 34
Part XI Documents Available for Reference 170
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
Definitions
Term Definition
Anhui Gujing Distillery Company Limited inclusive of its consolidated
The “Company”, “ Gu Jing” or “we”
subsidiaries, except where the context otherwise requires
Anhui Gujing Distillery Company Limited exclusive of subsidiaries, except
The Company as the parent
where the context otherwise requires
Gujing Group Anhui Gujing Group Co., Ltd.
Yellow Crane Tower Yellow Crane Tower Distillery Co., Ltd.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part II Corporate Information and Key Financial Information
I Corporate Information
Gujing Distillery, Gujing
Stock name Stock code 000596, 200596
Distillery-B
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 安徽古井贡酒股份有限公司
Abbr. (if any) 古井
Company name in English (if any) ANHUI GUJING DISTILLERY COMPANY LIMITED
Abbr. (if any) GU JING
Legal representative Liang Jinhui
II Contact Information
Board Secretary Securities Representative
Name Ye Changqing Mei Jia
Gujing Town, Bozhou City, Anhui Gujing Town, Bozhou City, Anhui
Address
Province, P.R.China Province, P.R.China
Tel. （0558）5712231 （0558）5710057
Fax （0558）5710099 （0558）5710099
Email address gjzqb@gujing.com.cn gjzqb@gujing.com.cn
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address and
email address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2018 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
periodic reports in the Reporting Period.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can
be found in the 2018 Annual Report.
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2019 H1 2018 Change (%)
Operating revenue (RMB) 5,988,112,999.09 4,783,083,895.33 25.19%
Net profit attributable to the listed
1,248,316,314.01 892,422,337.64 39.88%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 1,165,870,979.10 872,348,474.12 33.65%
gains and losses (RMB)
Net cash generated from/used in operating
1,041,733,748.83 668,946,891.61 55.73%
activities (RMB)
Basic earnings per share (RMB/share) 2.48 1.77 40.11%
Diluted earnings per share (RMB/share) 2.48 1.77 40.11%
Weighted average return on equity (%) 16.71% 13.94% 2.77%
30 June 2019 31 December 2018 Change (%)
Total assets (RMB) 12,520,063,624.92 12,509,928,449.72 0.08%
Equity attributable to the listed company’s
8,094,900,338.59 7,601,984,024.58 6.48%
shareholders (RMB)
V Accounting Data Differences under Chinese Accounting Standards (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Profit and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
XI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Gain or loss on disposal of non-current assets (inclusive of
-310,454.93
impairment allowance write-offs)
Government subsidies charged to current profit or loss (exclusive
of government subsidies given in the Company’s ordinary course
30,803,918.68
of business at fixed quotas or amounts as per government’s
uniform standards)
Gain or loss on fair-value changes in trading financial assets and
liabilities & investment income from disposal of trading financial
assets and liabilities and available-for-sale financial assets 83,312,387.28
(exclusive of effective portion of hedges that arise in the
Company’s ordinary course of business)
Non-operating income and expense other than above 9,823,095.95
Less: Income tax effects 30,769,441.49
Non-controlling interests effects (net of tax) 10,414,170.58
Total 82,445,334.91 --
Explanation of why the Company classifies a gain/loss item as exceptional according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items, or reclassifies any exceptional item listed in the said explanatory announcement as recurrent:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part III Business Summary
I Principal Activity of the Company in the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
No.
The Company primarily produces and markets liquor and spirits.
As one of China’s traditional top eight liquor brands, the Company is the first listed liquor and spirits company with both A and B
stocks. It is located in Bozhou City, Anhui Province in China, the hometown of historic figures Cao Cao and Hua Tuo, as well as one
of the world’s top 10 liquor-producing areas. No changes have occurred to the main business of the Company in the Reporting Period.
As the main product of the Company, the Gujing spirit originated as a “JiuYunChun Spirit”, together with its making secrets, being
presented as a hometown specialty by Cao Cao, a famous warlord in China’s history, to Emperor Han Xiandi (name: Liu Xie) in A.D.
196, and was continually presented to the royal house since then. With crystalline liquid, rich aroma, a fine flavor and a lingering
aftertaste, the Gujing spirit has helped the Company win four national distilled spirit golden awards, a golden award at the 13th SIAL
Paris, the title of China’s “Geographical Indication Product”, the recognition as a “Key Cultural Relics Site under the State
Protection”, the recognition with a “National Intangible Cultural Heritage Protection Project”, a Quality Award from the Anhui
provincial government, a title of “National Quality Benchmark”, among other honors.
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
□ Applicable √ Not applicable
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any industry-specific disclosure requirements?
No.
No significant changes occurred to the Company’s core competitiveness in the Reporting Period.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part IV Operating Performance Discussion and Analysis
I Overview
In the first half of 2019, China’s economy saw progress amid stability, with the financial condition continuously improving and the
level of interest rates maintaining a downward trend. As for the liquor and spirits industry, growth further slowed down.
Under the common efforts of the Board and all the staff, for the six months from January to June 2019, the Company recorded
operating revenue of RMB5,988 million, up 25.19% compared to the same period of last year; and a net profit attributable to the
Company as the parent of RMB1,248 million, representing a year-on-year growth of 39.88%, Net operating cash flow was 1.042
billion , an increase of 55.73% over the same period last year.. As such, the operating goals that the Company had set for the first half
of 2019 at the beginning of the year were all accomplished. To achieve that, the Company took the following main measures in the
Reporting Period: ① continuously strengthening branding with more investments to carry forward the brand revitalization programme;
② promoting digital marketing for smarter corporate management;③ proactively exploring internal innovation mechanism to build
“small-and-micro platforms” and profit centres; ④ enhancing safety and environmental management to ensure safe, smooth and
orderly production; ⑤ improving corporate culture by promoting party committee-management integration.
II Analysis of Core Businesses
See “I Overview” above.
Year-on-year changes in key financial data:
Unit: RMB
H1 2019 H1 2018 Change (%) Main reason for change
Operating revenue 5,988,112,999.09 4,783,083,895.33 25.19%
Cost of sales 1,394,156,734.55 1,042,675,468.24 33.71% Increase in labor cost
Selling expense 1,840,489,439.70 1,597,300,315.17 15.23%
Administrative expense 302,045,457.13 272,473,203.36 10.85%
Increase in discounted
Finance costs -4,302,625.30 -20,284,906.55 78.79%
notes
Income tax expense 419,145,404.31 320,789,915.24 30.66%
Net cash generated
Increase in customer
from/used in operating 1,041,733,748.83 668,946,891.61 55.73%
payments
activities
Net cash generated Increase in net cash
from/used in investing 1,273,479,672.84 -266,649,560.60 577.59% proceeds from
activities disinvestment
Net cash generated Increase in dividends
-755,400,000.00 -503,600,000.00 -50.00%
from/used in financing distributed
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
activities
Increase in net cash
Net increase in cash and
1,559,813,421.67 -101,302,668.99 1,639.76% generated from operating
cash equivalents
and investing activities
30 June 2019 31 December 2018 Change (%) Main reason for change
Increase in customer
Monetary capital 3,179,334,513.57 1,705,760,865.12 86.39% payments and proceeds
from disinvestment
The building of a digital
Construction in progress 162,876,312.37 93,320,557.56 74.53%
information system
Deferred income tax Increase in accrued
149,917,708.59 86,580,171.06 73.15%
assets expenses and discounts
Increase in investments
Other non-current assets 200,574,026.00 16,544,407.51 1,112.34%
in wealth management
Increase in trade
Notes payable 476,808,340.53 349,203,413.72 36.54%
acceptance bills issued
Advances from
517,109,674.60 1,149,143,310.48 -55.00% Increase in sales revenue
customers
Increase in accrued
Other current liabilities 443,198,383.65 295,164,745.44 50.15%
expenses
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes in the Reporting Period.
Breakdown of core businesses:
Unit: RMB
YoY change in YoY change in
Operating Gross profit YoY change in
Cost of sales operating revenue gross profit
revenue margin cost of sales (%)
(%) margin (%)
By operating division
Manufacturing 5,988,112,999.09 1,394,156,734.55 76.72% 25.19% 33.71% -1.48%
By product category
Liquor and spirits 5,877,046,855.59 1,324,886,967.90 77.46% 24.85% 31.06% -1.07%
Hotel services 39,956,640.89 18,893,242.40 52.72% -4.00% 3.85% -3.57%
Other 71,109,502.61 50,376,524.25 29.16% 107.60% 270.76% -31.18%
By operating segment
Domestic 5,980,801,339.96 1,390,964,711.11 76.74% 25.21% 33.70% -1.48%
Overseas 7,311,659.13 3,192,023.44 56.34% 11.11% 37.96% -8.50%
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
III Analysis of Non-Core Businesses
□ Applicable √ Not applicable
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2019 30 June 2018 Change in
As % of total As % of total percentage Reason for material change
Value Value
assets assets (%)
Increase in customer payments
Monetary capital 3,179,334,513.57 25.39% 967,785,957.41 8.63% 16.76% and proceeds from
disinvestment
Accounts
30,086,692.70 0.24% 19,492,576.07 0.17% 0.07%
receivable
Inventories 2,417,356,086.41 19.31% 2,140,586,455.59 19.09% 0.22%
Investment
4,868,657.29 0.04% 5,055,069.67 0.05% -0.01%
property
Fixed assets 1,684,243,384.48 13.45% 1,717,043,900.68 15.32% -1.87%
Construction in
162,876,312.37 1.30% 76,076,053.22 0.68% 0.62%
progress
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative
Impairment
fair-value fair-value Purchased in
Beginning allowance for Sold in
Item changes in changes Reporting Ending amount
amount Reporting Reporting Period
Reporting charged to Period
Period
Period equity
Financial
assets
1. Trading
financial
assets
2,965,016,000.42 11,320,345.56 0.00 0.00 971,660,000.00 2,374,400,054.88 1,573,596,291.10
(exclusive of
derivative
financial
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
assets)
Subtotal of
financial 2,965,016,000.42 11,320,345.56 0.00 0.00 971,660,000.00 2,374,400,054.88 1,573,596,291.10
assets
Total of the
2,965,016,000.42 11,320,345.56 0.00 0.00 971,660,000.00 2,374,400,054.88 1,573,596,291.10
above
Financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00
liabilities
Material changes in the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as of End of the Reporting Period
Unit: RMB
Item Ending carrying value Reasons
A structured time deposit not available for early withdrawal with
Bank deposits 770,000,000.00
a maturity of three months
Notes receivable 159,686,231.66 In pledge for issuing bank acceptance bills
Other monetary capital 13,960,226.78 Security deposits for notes
Total 943,646,458.44 --
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
V Investments Made
1. Total Investments Made
□ Applicable √ Not applicable
2. Significant Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on
Variety Cumulative fair Purchased Gain/loss in
Code of Name of Initial Accounting Beginning fair value Sold in the Ending Accounting Source of
value changes in the the
of measurement changes in Reporting
securities securities investment cost charged to Reporting Reporting title funds
model carrying value the Reporting Period carrying value
securities equity Period Period
Period
ZXYSDP
Trading
1st Assets Fair value Self-owned
Funds 200,000,000.00 206,393,107.46 11,203,183.64 0.00 0.00 0.00 0.00 217,596,291.10 financial
Management method funds
assets
Plan
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
Other ending holding securities
-- -- --
investments
Total 200,000,000.00 -- 206,393,107.46 11,203,183.64 0.00 0.00 0.00 0.00 217,596,291.10 -- --
Disclosure date of the
announcement about the board’s
Naught
consent for the securities
investment
Disclosure date of the
announcement about the general
Naught
meeting’s consent for the
securities investment (if any)
(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Proportion
of closing
Actual
Purchased in investment
Relationship Initial Beginning Sold in the Impairment Ending gain/loss in
Related-party Type of the amount in
Operator with the investment Starting date Ending date investment Reporting provision (if investment the
transaction derivative Reporting the
Company amount amount Period any) amount Reporting
Period Company’s
Period
ending net
assets
Reverse Reverse 28
30 June
repurchase Naught No repurchase of 0.00 December 17,990 1,090 17,990 0.00 1,090 0.13% 0.35
2019
of national national debt 2018
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
debt
Total 0.00 -- -- 17,990 1,090 17,990 0.00 1,090 0.13% 0.35
Capital source for derivative investment Company’s own funds
Lawsuits involved (if applicable) N/A
Disclosure date of board announcement approving
30 August 2013
derivative investment (if any)
Disclosure date of shareholders’ meeting announcement
N/A
approving derivative investment (if any)
Analysis of risks and control measures associated with
derivative investments held in the Reporting Period
The Company had controlled the relevant risks strictly according to the Derivatives Investment Management System.
(including but not limited to market risk, liquidity risk,
credit risk, operational risk, legal risk, etc.)
Changes in market prices or fair value of derivative
investments during the Reporting Period (fair value
Naught
analysis should include measurement method and
related assumptions and parameters)
Significant changes in accounting policies and specific
accounting principles adopted for derivative investments
Naught
in the Reporting Period compared to previous reporting
period
Based on the sustainable development of the main business and the sufficient free idle money, the Company increased the profits
through investing in the reasonable financial derivative instruments, which was in favor of improving the service efficiency of the idle
Opinion of independent directors on derivative funds; in order to reduce the investment risks of the financial derivative instruments, the Company had set up corresponding
investments and risk control supervision mechanism for the financial derivative instrument business and formulated reasonable accounting policy as well as specific
principles of financial accounting; the derivative Investment business developed separately took national debts as mortgage object,
which was met with the cautious and steady risks management principle and the interest of the Company and shareholders. Therefore,
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
agreed the Company to develop the derivative Investment business of reverse repurchase of national debt not more than the limit of
RMB0.3 billion.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profits
Unit: RMB
Relationship Main
Company business
with the Registered capital Total assets Net assets Operating revenues Operating profit Net profit
name scope
Company
Wholesales
of distilled
Bozhou
spirit,
Gujing Sales Subsidiary 84,864,497.89 3,301,747,907.17 632,802,748.56 5,420,576,901.76 668,101,750.92 491,864,613.88
construction
Co., Ltd
materials,
feeds and
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
assistant
materials
Anhui Manufacture
Longrui and sale of
Subsidiary 86,660,268.98 298,918,747.85 255,698,223.86 116,611,732.13 14,166,219.72 12,607,737.86
Glass Co., glass
Ltd products
Yellow
Production
Crane Tower
and sales of
Wine Subsidiary 400,000,000.00 973,430,257.56 636,511,743.27 457,947,025.03 77,329,932.54 57,327,050.43
distilled
Industry Co.,
spirit
Ltd
Shanghai
Hotel
Gujing
management
Jinhao Hotel Subsidiary 54,000,000.00 197,082,023.45 81,380,130.84 35,064,499.99 5,673,772.84 2,726,078.50
and house
Management
lease
Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
√ Applicable □ Not applicable
Principal place of The Company’s interest (%)
Name of subsidiary Place of registration Business nature How the subsidiary was obtained
business Direct Indirect
Hubei Yellow Crane
Tower Beverage Co., Xianning, Hubei Xianning, Hubei Commerce and trade 51.00 Incorporated with investment
Ltd.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Performance Forecast for January-September 2019
Warning of possible loss or considerable YoY change in the accumulative net profit made during the period-beginning to the end of
the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
1. Operating risk of the Company
(1) The adverse effect of the systematic risk in macro-economic environment on the development of the industry and the Company.
(2) Impact of industrial policy adjustment and change on the sustainable development of the Company.
(3) Impact of the change of consumption behaviors and habits on the consumption crowds and trend replacement of distilled spirits.
2. Countermeasures
1. Marketing
Strengthen the brand promotion at home and abroad, and apply internet thoughts to integrate brand promotion systematically.
Strengthen investment promotion at home and abroad, do well the management, training and service work of customers and
development and maintenance of new customers, and push forward globalization of liquor and spirits. Centering round consumption
scenarization, improve middle-end experience, online and offline integration, enhance interaction of experience shops.
2. Product Management
Continuously boost intelligent and green brewing process, enhance information, scientific and systematic management of product
quality, lay a solid foundation for quality management. And continuously strengthen the research on heath factors in distilled spirits.
Continue to deeply boost product, technology and operation standardization.
3. Management Innovation
Centering round the users, build a digitalized Gujing. With information linking the management system, consolidate management
contexts, optimize business efficiency and build an intelligent management enterprise. Implement integration of industry and finance,
transform its financial management mode and build a close-loop financial sharing platform. With the key laid on pushing forward
construction of ERP system, build an integrated enterprise management platform and achieve concentrated management, control and
operation. Explore internal innovation incentive mechanisms actively, and arouse the passion and motivation of staff members in
their business starting and innovation.
4. Human Resource
Optimize construction of the talent team, deepen the construction of "artisan pool", "elite pool", "management channel" and
"technical channel", optimize assessment of various levels and personnel management work, implement the flexible employment
mechanism and improve the multi-level talent cultivation system, further improve the assessment and appraisal system and incentive
and restraint mechanism for various kinds of talents.
5. Corporate Cultural Construction
Implementing the party construction principle of "grasp party construction work and promote development centering round business
operation" and the core values of "being honest, offering quality liquor, being stronger and being helpful to the society", deepen party
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
construction work and construction of corporate culture, and play the guiding and promotion role of party construction and culture in
corporate development. Conduct the education of anti-corruption and occupational warning, enhance ideological and political work
all-roundly and build a firm ideological defense. Guided by party construction and motivated by red army's history, concentrate
energy for promoting development.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part V Significant Events
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
For details, see
Announcement about
Resolutions of 2018
Annual General Meeting
of the Company disclosed
The 2018 Annual Annual General
61.15% 20 May 2019 21 May 2019 on China Securities
General Meeting Meeting
Journal, Shanghai
Securities News, Ta Kung
Pao (HK), and
http://www.cninfo.com.cn
on 21 May 2019.
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
II Interim Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no interim dividend plan.
III Commitments of the Company’s Actual Controller, Shareholders, Connected Parties and
Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the Reporting
Period or still Ongoing at Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of CPAs Firm
Has the Interim financial report been audited?
□Yes √ No
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
This Interim Report is unaudited.
V Explanations Given by Board of Directors and Supervisory Committee Regarding
“Modified Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issued
for Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits or arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
XII Significant Related-party Transactions
1. Related-party Transactions Relevant to Routine Operations
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related-party Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Significant Related-party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII. Particulars about the Non-operating Occupation of Funds by the Controlling
Shareholder and Other Related Parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other connected parties
during the Reporting Period.
XIV. Significant Contracts and Execution
1. Entrustment, Contracting and Leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XV. Corporate Social Responsibility (CSR)
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China
Yes
Name of
Name of Pollutant
major Quantity of Distribution
company or Way of Discharge discharge Total Permitted Excess
pollutant and discharge of discharge
subsidiary discharge concentration standard discharge discharge discharge
typical outlet outlet
company implemented
pollutant
Gujing
Anbui plant
26.08mg/L ≦50mg/L
Gujing Directly Zhangji
COD 3 34.34mg/L ≦100mg/L 69.48 t 155.05 t Naught
Distillery discharge plant
64.37mg/L ≦100mg/L
Co., Ltd. Headquarter
plant
Gujing
Anbui plant
2.17mg/L ≦5mg/L
Gujing Directly Zhangji
NH3-N 3 3.10mg/L ≦10mg/L 8.06 t 15.53 t Naught
Distillery discharge plant
8.21mg/L ≦10mg/L
Co., Ltd. Headquarter
plant
~ 23 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Gujing
Anbui plant
4.97mg/m ≦10mg/m
Gujing Organized Zhangji
Smoke 3 27.78mg/m ≦80mg/m 3.4 t Naught Naught
Distillery discharge plant
5.68mg/m ≦10mg/m
Co., Ltd. Headquarter
plant
Gujing
Anbui plant
11.34mg/m ≦35mg/m
Gujing Organized Zhangji
Sulfur Dioxide 3 166.26mg/m≦400mg/m 15.48 t Naught Naught
Distillery discharge plant
25.29mg/m ≦35mg/m
Co., Ltd. Headquarter
plant
Gujing
Anbui plant
34.07mg/m ≦50mg/m
Gujing Nitrogen Organized Zhangji
3 202.92mg/m≦400mg/m 20.02 t Naught Naught
Distillery oxide discharge plant
22.52mg/m ≦50mg/m
Co., Ltd. Headquarter
plant
No. 1
Anhui furnace 19.22mg/m
Longrui Organized No. 2 Out of
Smoke 3 ≦200mg/m 8.03 t Naught Naught
Glass Co., discharge furnace service
Ltd No. 3 19.76mg/m
furnace
No. 1
Anhui furnace Naught
Longrui Organized No. 2 Out of
Sulfur Dioxide 3 ≦850mg/m 0.00 t Naught Naught
Glass Co., discharge furnace service
Ltd No. 3 Naught
furnace
No. 1
Anhui furnace 143mg/m
Longrui Nitrogen Organized No. 2 Out of
3 ≦700mg/m 28.37 t Naught Naught
Glass Co., oxide discharge furnace service
Ltd No. 3 73mg/m
furnace
Construction and operation of facilities for preventing pollution:
1. Construction and operation of the sewage control facilities of the listed Company and its subsidiary companies
(1) The sewage treatment capacity of the sewage treatment station of Gujing Subsidiary under Anhui Gujing Distillery Co., Ltd is
about 2300 tons per day. During the period from 2016 to 2018, the technological transformation project that adopting IC anaerobic
jar, A/O and in-depth treatment process was carried forward. On 15 December 2018, the independent acceptance of the project was
~ 24 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
completed. The discharge of sewage for the Reporting Period is in compliance with the direct discharge requirements in the Table 3
of GB27631-2011 Discharge Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry.
(2) The sewage treatment capacity of the sewage treatment station of the headquarters of Anhui Gujing Distillery Co., Ltd and
Zhangji Plant are respectively about 4300 tons per day and 600 tons per day. IC anaerobic jar, A/O and in-depth treatment process
has been adopted. The sewage is discharged after treatment and up to the standard, and discharge of sewage for the Reporting Period
is in compliance with the direct discharge requirements in the Table 2 of GB27631-2011 Discharge Standard of Water Pollutants for
Fermentation Alcohol and Distilled Spirits Industry.
(3) The production and living sewage of Anhui Longrui Glass Co., Ltd is discharged into the sewage treatment station of Zhangji
Plant under Anhui Gujing Distillery Company Limited, and it is discharged after treatment and up to the standard.
2. Construction and operation situation of waste gas control facilities of the listed Company and its subsidiaries
(1) The flue gas control facilities of thermal power stations of the Headquarters and Gujing Subsidiary of Anhui Gujing Distillery
Company Limited initiated in June 2018, a super-low discharge renovation project was started, and the process of cloth-bag dust
removal +Limestone-Wet flue gas Desulfurization +SNCR Denitrification by non-catalytic reduction + SCR Denitrificationby
catalytic reduction + Wet electrostatic precipitator has been adopted. As for the project, the transformation was completed and the
completion acceptance is in progress.
(2) As for the coal-to-gas project for the thermal power station of Zhangji Plant under Anhui Gujing Distillery Company Limited, the
installment of boilers and principal part of the gas station has finished and it comes into the stage of fire control acceptance waiting
for debugging. During the Reporting Period, the original coal-fired boiler runs normally. The process of cloth-bag dust removal
+Desulfurization in limestone furnace+SNCR Denitrification by non-catalytic reduction has been adopted, and discharge of flue gas
meets the requirements for coal-fired boiler in the Table 1 of GB13271-2014 Emission Standard of Air Pollutants for Industrial Kiln
and Furnace.
(3) No.2 furnace of Anhui Longrui Glass Co., Ltd has been out of service, No.1 and No.3 furnaces have completed coal-to-gas work
and are running stably. SCR Denitrification by catalytic reduction has been adopted, and discharge of flue gas meets the requirements
in GB9078-1996 Emission Standard of Air Pollutants for Boiler.
For the Reporting Period, the environment protection facilities of Anhui Gujing Distillery Company Limited and its subsidiaries ran
normally in general, main pollutants can achieve up-to-standard discharge, environment information is opened to the public normally,
and they have performed their social responsibilities properly.
Environmental impact assessment of construction project and other administrative license situation in respect of
environmental protection
No. Item Category of EIA EIA approval (filing) time EIA approval (filing) number
Construction and renovation of
11# integrated storage center of
1 EIA report form 15 April 2019 BHB [2019] No. 11
Anhui Gujing Distillery Company
Limited
Emergency plan for sudden environment affairs
The Company has formulated the Emergency Plan of Anhui Gujing Distillery Company Limited for Sudden Environmental Pollution
Accident, which has been filed at Bozhou Environmental Protection Bureau. Emergency plan drill has been carried out according to
relevant requirements.
Environmental self-monitoring scheme
The Company has formulated the Self-Monitoring Scheme of Key Pollution Source Enterprises under the National Monitoring and
published it on the website of Bozhou Environmental Protection Bureau.
Other environment information that should be disclosed
~ 25 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Naught
Other related environment protection information
Naught
2. Measures Taken for Targeted Poverty Alleviation
(1) Summary of Precision Poverty Alleviation for the Reporting Period
In accordance with the requirements of the State, Anhui Provincial Party Committee and Government, and Bozhou Municipal Party
Committee and Government on precision poverty alleviation, the Company has established targeted support towards poor families in
Bali village, Wuma town, Qiaocheng District, Bozhou. The Company has established a complete and formal long-term mechanism
for poverty alleviation targeted at those families. A supporting policy of one file for one family, one card for one family, and one
policy for one family has been implemented based on the principle of “organizations are responsible for villages and cadres are
responsible for families”, and files have been created based on family members, major labor force, farmland and income structure of
poor families in each poor village. Since the implementation of poverty alleviation work, Bali Village in Wuma Town has all
achieved poverty alleviation and has a fixed income.
(2) Subsequent Plan for Precision Poverty Alleviation
First, the Company will continue to engage in poverty alleviation and strengthen its efforts in targeted support towards poor families;
second, the Company will continue to implement the supporting policy of the Provincial Party Committee and Government and the
Municipal Party Committee and Government, soundly advancing the poverty alleviation work in line with the relevant requirements
to carry out the social responsibility.
XVI. Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVII. Significant Events of Subsidiaries
□ Applicable √ Not applicable
~ 26 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part VI Share Changes and Shareholder Information
I. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Percentage New Bonus Bonus issue Percentage
Number Other Subtotal Number
(%) issues shares from profit (%)
I. Restricted shares 0 0.00% 0 0.00%
II. Non-restricted shares 503,600,000 100.00% 503,600,000 100.00%
1 RMB ordinary shares 383,600,000 76.17% 383,600,000 76.17%
2 Domestically listed
120,000,000 23.83% 120,000,000 23.83%
foreign shares
III. Total shares 503,600,000 100.00% 503,600,000 100.00%
Reasons for the share changes
□ Applicable √ Not applicable
Approval of share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to ordinary shareholders of the Company and
other financial indexes over the prior year and the prior period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
~ 27 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of preference shareholders
Total number of ordinary
20,504 with resumed voting rights at the 0
shareholders at the period-end
period-end (if any) (see Note 8)
5% or greater ordinary shareholders or the top 10 ordinary shareholders
Number Pledged or frozen
Shareholding Total shares Increase/decrease of Number of shares
Nature of
Name of shareholder percentage held at the during the restricted non-restricted
shareholder
(%) period-end Reporting Period shares shares held Status Number
held
ANHUI GUJING
State-owned
GROUP COMPANY 53.89% 271,404,022 271,404,022 Pledged 114,000,000
legal person
LIMITED
GAOLING Foreign legal
2.47% 12,446,408 12,446,408
FUND,L.P. person
AGRICULTURAL
BANK OF CHINA- E
FUND
CONSUMPTION
Other 2.15% 10,838,286 10,838,286
SECTOR STOCK
SECURITIES
INVESTMENT
FUND
HONG KONG
SECURITIES Foreign legal
1.75% 8,816,700 8,816,700
CLEARING person
COMPANY LTD.
CHINA INT'L
CAPITAL CORP Foreign legal
1.73% 8,714,643 8,714,643
HONG KONG person
SECURITIES LTD
Foreign legal
NORGES BANK 1.59% 8,027,356 8,027,356
person
UBS (LUX) EQUITY
FUND - CHINA Foreign legal
1.40% 7,068,861 7,068,861
OPPORTUNITY person
(USD)
CENTRAL HUIJIN State-owned
1.30% 6,543,600 6,543,600
ASSET legal person
~ 28 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
MANAGEMENT
CO., LTD.
GREENWOODS
Foreign legal
CHINA ALPHA 1.12% 5,657,150 5,657,150
person
MASTER FUND
INDUSTRIAL AND
COMMERCIAL
BANK OF CHINA
LIMITED-JINGSHUN
GREATWALL
Other 0.95% 4,774,497 4,774,497
EMERGING
GROWTH HYBRID
SECURITIES
INVESTMENT
FUND
Strategic investor or general
corporation becoming a top ten
N/A
shareholder due to placing of new
shares (if any) (note 3)
Among the shareholders above, the Company’s controlling shareholder—Anhui Gujing
Group Company Limited—is not a connected party of other shareholders; nor are they
Explanation on connected relationship parties acting in concert as defined in the Administrative Measures on Information
or/and persons acting in concert among Disclosure of Changes in Shareholding of Listed Companies. As for the other shareholders,
the above-mentioned shareholders the Company does not know whether they are connected 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.
Shareholdings of the top ten non-restricted ordinary shareholders
Type of shares
Name of shareholder Number of non-restricted shares held at the period-end
Type Number
ANHUI GUJING GROUP RMB ordinary
271,404,022 271,404,022
COMPANY LIMITED share
Domestically
GAOLING FUND,L.P. 12,446,408 listed foreign 12,446,408
share
AGRICULTURAL BANK OF
CHINA- E FUND CONSUMPTION RMB ordinary
10,838,286 10,838,286
SECTOR STOCK SECURITIES share
INVESTMENT FUND
HONG KONG SECURITIES RMB ordinary
8,816,700 8,816,700
CLEARING COMPANY LTD. share
~ 29 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Domestically
CHINA INT'L CAPITAL CORP
8,714,643 listed foreign 8,714,643
HONG KONG SECURITIES LTD
share
Domestically
NORGES BANK 8,027,356 listed foreign 8,027,356
share
Domestically
UBS (LUX) EQUITY FUND - CHINA
7,068,861 listed foreign 7,068,861
OPPORTUNITY (USD)
share
CENTRAL HUIJIN ASSET RMB ordinary
6,543,600 6,543,600
MANAGEMENT CO., LTD. share
Domestically
GREENWOODS CHINA ALPHA
5,657,150 listed foreign 5,657,150
MASTER FUND
share
INDUSTRIAL AND COMMERCIAL
BANK OF CHINA
RMB ordinary
LIMITED-JINGSHUN GREATWALL 4,774,497 4,774,497
share
EMERGING GROWTH HYBRID
SECURITIES INVESTMENT FUND
Among the shareholders above, the Company’s controlling shareholder—Anhui Gujing
Related or acting-in-concert parties Group Company Limited—is not a related party of other shareholders; nor are they parties
among the top ten non-restrictedly acting in concert as defined in the Administrative Measures on Information Disclosure of
tradable share holders and between the Changes in Shareholding of Listed Companies. As for the other shareholders, the Company
top ten non-restrictedly tradable share does not know whether they are related parties or whether they belong to parties acting in
holders and the top ten shareholders concert as defined in the Administrative Measures on Information Disclosure of Changes in
Shareholding of Listed Companies.
Top ten ordinary shareholders
conducting securities margin trading N/A
(if any) (see Note 4)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
~ 30 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
~ 31 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part VIII Directors, Supervisors and Senior Management
I Changes in Shareholdings of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There were no changes in shareholdings of directors, supervisors, and senior management in the Reporting Period. For details, see
Annual Report of 2018.
II Changes in Directors, Supervisors and Executive Officers
√ Applicable □ Not applicable
Name Office title Type Date Reason
Chairman of the
Sun Wanhua Supervisory Elected 20 May 2019
Committee
Lu Duicang Supervisor Elected 20 May 2019
Chairman of the
Wang Feng Supervisory Left 20 May 2019 Adjustment of post
Committee
Fu Qiangxin Supervisor Left 20 May 2019 Adjustment of post
~ 32 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this
Report or were due but could not be redeemed in full?
No
~ 33 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part X Financial Statements
I. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by Anhui Gujing Distillery Company Limited
30 June 2019
Unit: RMB
Item 30 June 2019 31 December 2018
Current assets:
Monetary capital 3,179,334,513.57 1,705,760,865.12
Settlement reserve
Interbank loans granted
Trading financial assets 1,573,596,291.10 0.00
Financial assets at fair value through
0.00 622,892.96
profit or loss
Derivative financial assets
Notes receivable 1,317,423,562.34 1,347,427,811.34
Accounts receivable 30,086,692.70 29,748,068.74
Financing backed by accounts
receivable
Prepayments 129,888,415.85 182,558,000.75
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 48,528,411.45 43,342,878.22
~ 34 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Including: Interest receivable 30,443,178.08 24,923,178.08
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 2,417,356,086.41 2,407,306,664.86
Contract assets
Assets classified as held for sale
Current portion of non-current assets 300,000,000.00 300,000,000.00
Other current assets 29,538,776.67 3,012,478,687.20
Total current assets 9,025,752,750.09 9,029,245,869.19
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 0.00 206,393,107.46
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 4,735,005.81 4,900,000.00
Investments in other equity
instruments
Other non-current financial assets
Investment property 4,868,657.29 5,027,228.53
Fixed assets 1,684,243,384.48 1,763,988,530.56
Construction in progress 162,876,312.37 93,320,557.56
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 733,039,684.21 742,083,609.10
R&D expense
Goodwill 478,283,495.29 478,283,495.29
Long-term prepaid expense 75,772,600.79 83,561,473.46
Deferred income tax assets 149,917,708.59 86,580,171.06
Other non-current assets 200,574,026.00 16,544,407.51
Total non-current assets 3,494,310,874.83 3,480,682,580.53
Total assets 12,520,063,624.92 12,509,928,449.72
~ 35 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Current liabilities:
Short-term borrowings
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 476,808,340.53 349,203,413.72
Accounts payable 337,532,981.76 484,952,598.59
Advances from customers 517,109,674.60 1,149,143,310.48
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Payroll payable 310,846,649.23 457,299,476.43
Taxes payable 368,743,282.05 372,993,624.18
Other payables 1,337,734,331.13 1,192,020,147.82
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Contract liabilities
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities 443,198,383.65 295,164,745.44
Total current liabilities 3,791,973,642.95 4,300,777,316.66
Non-current liabilities:
Insurance contract reserve
~ 36 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income 74,300,122.46 76,636,500.55
Deferred income tax liabilities 104,491,018.40 102,764,515.11
Other non-current liabilities
Total non-current liabilities 178,791,140.86 179,401,015.66
Total liabilities 3,970,764,783.81 4,480,178,332.32
Owners’ equity:
Share capital 503,600,000.00 503,600,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 1,295,405,592.25 1,295,405,592.25
Less: Treasury stock
Other comprehensive income 0.00 4,794,830.59
Specific reserve
Surplus reserves 256,902,260.27 256,902,260.27
General reserve
Retained earnings 6,038,992,486.07 5,541,281,341.47
Total equity attributable to owners of
8,094,900,338.59 7,601,984,024.58
the Company as the parent
Non-controlling interests 454,398,502.52 427,766,092.82
Total owners’ equity 8,549,298,841.11 8,029,750,117.40
Total liabilities and owners’ equity 12,520,063,624.92 12,509,928,449.72
Legal representative: Liang Jinhui The Company’s chief accountant: Ye Changqing
Head of the Company’s financial department: Zhu Jiafeng
~ 37 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2019 31 December 2018
Current assets:
Monetary capital 1,802,891,540.10 1,078,172,917.59
Trading financial assets 1,283,596,291.10 0.00
Financial assets at fair value through
0.00 622,892.96
profit or loss
Derivative financial assets
Notes receivable 1,108,974,294.31 1,256,336,386.34
Accounts receivable 10,652,383.81 9,385,950.54
Financings backed by accounts
receivable
Prepayments 32,040,928.40 10,869,911.54
Other receivables 105,037,195.62 110,800,665.19
Including: Interest receivable
Dividends receivable
Inventories 2,054,730,290.11 2,125,826,967.11
Contract assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 10,900,000.00 1,764,267,968.83
Total current assets 6,408,822,923.45 6,356,283,660.10
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 0.00 206,393,107.46
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 1,148,213,665.32 1,148,213,665.32
Investments in other equity
instruments
Other non-current financial assets
Investment property 4,868,657.29 24,715,657.40
~ 38 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Fixed assets 1,250,784,248.86 1,290,714,455.79
Construction in progress 152,636,993.95 86,634,753.93
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 186,197,455.70 189,968,142.25
R&D expense
Goodwill
Long-term prepaid expense 51,792,292.31 56,643,945.05
Deferred income tax assets 25,828,182.26 37,415,458.17
Other non-current assets 574,026.00 12,474,026.00
Total non-current assets 2,820,895,521.69 3,053,173,211.37
Total assets 9,229,718,445.14 9,409,456,871.47
Current liabilities:
Short-term borrowings
Trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 49,462,005.58 28,648,913.72
Accounts payable 250,260,975.12 362,290,556.21
Advances from customers 1,270,017,763.69 1,123,125,892.84
Contract liabilities
Payroll payable 94,335,702.40 117,748,485.96
Taxes payable 155,090,249.07 161,176,957.25
Other payables 267,083,819.65 372,902,293.22
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities 3,203,092.77 32,605,794.55
Total current liabilities 2,089,453,608.28 2,198,498,893.75
Non-current liabilities:
~ 39 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities 34,425,436.60 36,417,554.85
Other non-current liabilities 7,546,971.67 4,828,737.52
Total non-current liabilities
Total liabilities 41,972,408.27 41,246,292.37
Owners’ equity: 2,131,426,016.55 2,239,745,186.12
Share capital
Other equity instruments 503,600,000.00 503,600,000.00
Including: Preferred shares
Perpetual bonds
Capital reserves
Less: Treasury stock 1,247,162,107.35 1,247,162,107.35
Other comprehensive income
Specific reserve 0.00 4,794,830.59
Surplus reserves
General reserve 251,800,000.00 251,800,000.00
Retained earnings 5,095,730,321.24 5,162,354,747.41
Total owners’ equity 7,098,292,428.59 7,169,711,685.35
Total liabilities and owners’ equity 9,229,718,445.14 9,409,456,871.47
3. Consolidated Income Statement
Unit: RMB
Item H1 2019 H1 2018
1. Revenue 5,988,112,999.09 4,783,083,895.33
Including: Operating revenue 5,988,112,999.09 4,783,083,895.33
Interest income
Premium income
~ 40 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Handling charge and
commission income
2. Costs and expenses 4,416,581,005.79 3,629,658,388.11
Including: Cost of sales 1,394,156,734.55 1,042,675,468.24
Interest expense
Handling charge and
commission expense
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 869,527,762.04 729,467,173.53
Selling expense 1,840,489,439.70 1,597,300,315.17
Administrative expense 302,045,457.13 272,473,203.36
R&D expense 14,664,237.67 8,027,134.36
Finance costs -4,302,625.30 -20,284,906.55
Including: Interest
14,173,972.09 0.00
expense
Interest
20,466,649.02 21,644,883.48
income
Add: Other income 30,783,918.68 4,487,036.05
Return on investment (“-” for loss) 77,347,047.53 68,775,019.95
Including: Share of profit or loss
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Foreign exchange gain (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
11,320,345.56 236,707.77
for loss)
~ 41 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for loss) -6,421,818.07 -1,171,911.36
Asset disposal income (“-” for
119,488.56 154,437.81
loss)
3. Operating profit (“-” for loss) 1,684,680,975.56 1,225,906,797.44
Add: Non-operating income 11,150,763.53 14,758,797.76
Less: Non-operating expense 1,737,611.07 4,438,013.04
4. Profit before tax (“-” for loss) 1,694,094,128.02 1,236,227,582.16
Less: Income tax expense 419,145,404.31 320,789,915.24
5. Net profit (“-” for net loss) 1,274,948,723.71 915,437,666.92
5.1 By operating continuity
5.1.1 Net profit from continuing
1,274,948,723.71 915,437,666.92
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
1,248,316,314.01 892,422,337.64
owners of the Company as the parent
5.2.1 Net profit attributable to
26,632,409.70 23,015,329.28
non-controlling interests
6. Other comprehensive income, net of
0.00 -45,102,275.58
tax
Attributable to owners of the Company
0.00 -45,102,275.58
as the parent
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
investments in other equity instruments
6.1.4 Changes in the fair value of
the company’s credit risks
~ 42 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
6.1.5 Other
6.2 Items that will be reclassified to
0.00 -45,102,275.58
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial 0.00 -45,102,275.58
assets
6.2.4 Other comprehensive
income arising from the reclassification
of financial assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.6 Allowance for credit
impairments in investments in other debt
obligations
6.2.7 Reserve for cash flow
hedges
6.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
6.2.9 Other
Attributable to non-controlling
interests
7. Total comprehensive income 1,274,948,723.71 870,335,391.34
Attributable to owners of the Company
1,248,316,314.01 847,320,062.06
as the parent
Attributable to non-controlling
26,632,409.70 23,015,329.28
interests
8. Earnings per share
8.1 Basic earnings per share 2.48 1.77
8.2 Diluted earnings per share 2.48 1.77
~ 43 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Legal representative: Liang Jinhui The Company’s chief accountant: Ye Changqing
Head of the Company’s financial department: Zhu Jiafeng
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2019 H1 2018
1. Operating revenue 3,144,682,463.58 2,373,509,719.96
Less: Cost of sales 1,277,918,576.91 962,446,727.32
Taxes and surcharges 764,598,846.12 612,880,006.38
Selling expense 45,886,471.81 90,185,702.99
Administrative expense 202,658,261.68 183,435,604.67
R&D expense 9,036,129.81 7,385,784.90
Finance costs -2,059,057.16 -17,205,534.12
Including: Interest expense 14,006,847.09 0.00
Interest income 17,740,923.04 20,244,281.30
Add: Other income 3,372,718.25 2,363,480.01
Return on investment (“-” for
31,883,868.76 61,302,268.33
loss)
Including: Share of profit or
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
11,320,345.56 236,707.77
for loss)
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for
-6,131,316.45 -1,440,847.72
loss)
Asset disposal income (“-” for
36,552.41 0.00
loss)
2. Operating profit (“-” for loss) 887,125,402.94 596,843,036.21
Add: Non-operating income 9,342,723.23 12,278,301.09
Less: Non-operating expense 1,225,313.77 3,316,344.52
~ 44 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
3. Profit before tax (“-” for loss) 895,242,812.40 605,804,992.78
Less: Income tax expense 211,262,069.16 162,576,738.06
4. Net profit (“-” for net loss) 683,980,743.24 443,228,254.72
4.1 Net profit from continuing
683,980,743.24 443,228,254.72
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
0.00 -45,064,475.58
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value of
the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified to
0.00 -45,064,475.58
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial 0.00 -45,064,475.58
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
~ 45 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income 683,980,743.24 398,163,779.14
7. Earnings per share
7.1 Basic earnings per share 1.36 0.88
7.2 Diluted earnings per share 1.36 0.88
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2019 H1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
5,352,480,704.00 4,168,785,414.04
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
~ 46 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Net proceeds for acting trading of
securities
Tax rebates 15,816,253.89 1,526,552.28
Cash generated from other operating
276,731,904.68 578,221,173.31
activities
Subtotal of cash generated from
5,645,028,862.57 4,748,533,139.63
operating activities
Payments for commodities and
899,005,913.59 805,659,265.35
services
Net increase in loans and advances to
customers
Net increase in deposits in central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in financial assets held
for trading
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 1,006,137,070.65 777,363,928.00
Taxes paid 2,001,653,338.87 1,875,377,764.19
Cash used in other operating
696,498,790.63 621,185,290.48
activities
Subtotal of cash used in operating
4,603,295,113.74 4,079,586,248.02
activities
Net cash generated from/used in
1,041,733,748.83 668,946,891.61
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 2,576,300,054.88 1,050,984,415.12
Return on investment 72,002,136.32 64,643,822.92
Net proceeds from the disposal of
fixed assets, intangible assets and other 33,700.00 170,207.20
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
~ 47 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Cash generated from other investing
activities
Subtotal of cash generated from
2,648,335,891.20 1,115,798,445.24
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 152,296,054.86 160,906,209.61
long-lived assets
Payments for investments 1,222,560,163.50 1,221,541,796.23
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
1,374,856,218.36 1,382,448,005.84
activities
Net cash generated from/used in
1,273,479,672.84 -266,649,560.60
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayments of borrowings
Payments for interest and dividends 755,400,000.00 503,600,000.00
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
755,400,000.00 503,600,000.00
activities
Net cash generated from/used in
-755,400,000.00 -503,600,000.00
financing activities
~ 48 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
4. Effect of foreign exchange rate
changes on cash and cash equivalents
5. Net increase in cash and cash
1,559,813,421.67 -101,302,668.99
equivalents
Add: Cash and cash equivalents,
835,560,865.12 1,024,088,626.40
beginning of the period
6. Cash and cash equivalents, end of the
2,395,374,286.79 922,785,957.41
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2019 H1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
3,351,164,696.89 1,823,943,040.35
and rendering of services
Tax rebates
Cash generated from other operating
248,907,013.29 637,265,577.14
activities
Subtotal of cash generated from
3,600,071,710.18 2,461,208,617.49
operating activities
Payments for commodities and
847,532,691.56 621,024,637.00
services
Cash paid to and for employees 355,855,901.15 299,547,110.96
Taxes paid 1,260,288,640.64 1,185,933,500.57
Cash used in other operating
145,296,084.94 122,550,902.77
activities
Subtotal of cash used in operating
2,608,973,318.29 2,229,056,151.30
activities
Net cash generated from/used in
991,098,391.89 232,152,466.19
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 1,400,740,054.88 860,984,415.12
Return on investment 31,890,794.48 62,684,376.34
Net proceeds from the disposal of
fixed assets, intangible assets and other 41,304.23 0.00
long-lived assets
Net proceeds from the disposal of
~ 49 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
1,432,672,153.59 923,668,791.46
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 116,751,759.47 84,656,707.92
long-lived assets
Payments for investments 726,900,163.50 621,541,796.23
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
843,651,922.97 706,198,504.15
activities
Net cash generated from/used in
589,020,230.62 217,470,287.31
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained
Net proceeds from the issuance of
bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayments of borrowings
Payments for interest and dividends 755,400,000.00 503,600,000.00
Cash used in other financing
activities
Subtotal of cash used in financing
755,400,000.00 503,600,000.00
activities
Net cash generated from/used in
-755,400,000.00 -503,600,000.00
financing activities
4. Effect of foreign exchange rate
changes on cash and cash equivalents
5. Net increase in cash and cash
824,718,622.51 -53,977,246.50
equivalents
~ 50 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Add: Cash and cash equivalents,
708,172,917.59 826,262,109.02
beginning of the period
6. Cash and cash equivalents, end of the
1,532,891,540.10 772,284,862.52
period
~ 51 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
7. Consolidated Statements of Changes in Owners’ Equity
H1 2019
Unit: RMB
H1 2019
Equity attributable to owners of the Company as the parent
Other equity Gener
Item Less: Other Specifi Non-controlli Total owners’
instruments Capital Surplus al Retained Othe
Share capital Treasur comprehensi c Subtotal ng interests equity
reserves reserves reserv earnings r
Preferre Perpetu Othe y stock ve income reserve
d shares al bonds r e
1. Balances
as at the end 503,600,000. 1,295,405,592. 256,902,260. 5,541,281,341. 7,601,984,024. 427,766,092.8 8,029,750,117.
4,794,830.59
of the prior 00 25 27 47 58 2 40
year
Add:
Adjustments
-4,794,830.5
for changed 4,794,830.59
9
accounting
policies
Adjustments
for
corrections
of previous
errors
Adjustments
~ 52 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
for business
combinations
under
common
control
Other
adjustments
2. Balances
as at the 503,600,000. 1,295,405,592. 256,902,260. 5,546,076,172. 7,601,984,024. 427,766,092.8 8,029,750,117.
beginning of 00 25 27 06 58 2 40
the year
3. Increase/
decrease in
the period 492,916,314.01 492,916,314.01 26,632,409.70 519,548,723.71
(“-” for
decrease)
3.1 Total
1,248,316,314. 1,248,316,314. 1,274,948,723.
comprehensi 26,632,409.70
01 01 71
ve income
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
~ 53 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
shareholders
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
3.3 Profit -755,400,000.0 -755,400,000.0 -755,400,000.0
distribution 0 0 0
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
3.3.3 -755,400,000.0 -755,400,000.0 -755,400,000.0
Appropriatio 0 0 0
~ 54 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
n to owners
(or
shareholders)
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset
by surplus
reserves
3.4.4
~ 55 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Changes in
defined
benefit
pension
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
~ 56 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
4. Balances
503,600,000. 1,295,405,592. 256,902,260. 6,038,992,486. 8,094,900,338. 454,398,502.5 8,549,298,841.
as at the end 0.00
00 25 27 07 59 2 11
of the period
H1 2018
Unit: RMB
H1 2018
Equity attributable to owners of the Company as the parent
Other equity Gener
Item Less: Other Specifi Non-controlli Total owners’
instruments Capital Surplus al Retained Othe
Share capital Treasur comprehensi c Subtotal ng interests equity
reserves reserves reserv earnings r
Preferre Perpetu Othe y stock ve income reserve
d shares al bonds r e
1. Balances
as at the end 503,600,000. 1,295,405,592. 53,520,827.4 256,902,260. 4,349,649,698. 6,459,078,378. 382,100,628.3 6,841,179,006.
of the prior 00 25 4 27 42 38 3 71
year
Add:
Adjustments
for changed
accounting
policies
Adjustments
for
corrections
of previous
errors
~ 57 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Adjustments
for business
combinations
under
common
control
Other
adjustments
2. Balances
as at the 503,600,000. 1,295,405,592. 53,520,827.4 256,902,260. 4,349,649,698. 6,459,078,378. 382,100,628.3 6,841,179,006.
beginning of 00 25 4 27 42 38 3 71
the year
3. Increase/
decrease in
-45,102,275.
the period 388,822,337.64 343,720,062.06 23,015,329.28 366,735,391.34
58
(“-” for
decrease)
3.1 Total
-45,102,275.
comprehensi 892,422,337.64 847,320,062.06 23,015,329.28 870,335,391.34
58
ve income
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
~ 58 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
shares
increased by
shareholders
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
3.3 Profit -503,600,000.0 -503,600,000.0 -503,600,000.0
distribution 0 0 0
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
~ 59 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
3.3.3
Appropriatio
-503,600,000.0 -503,600,000.0 -503,600,000.0
n to owners
0 0 0
(or
shareholders)
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset
by surplus
~ 60 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
reserves
3.4.4
Changes in
defined
benefit
pension
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
~ 61 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
period
3.6 Other
4. Balances
503,600,000. 1,295,405,592. 256,902,260. 4,738,472,036. 6,802,798,440. 405,115,957.6 7,207,914,398.
as at the end 8,418,551.86
00 25 27 06 44 1 05
of the period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2019
Unit: RMB
H1 2019
Other equity instruments Less: Other
Item Specific Surplus Retained Total owners’
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Other
Other reserve reserves earnings equity
shares bonds stock income
1. Balances as at the
503,600,000.00 1,247,162,107.35 4,794,830.59 251,800,000.00 5,162,354,747.41 7,169,711,685.35
end of the prior year
Add: Adjustments for
changed accounting -4,794,830.59 4,794,830.59
policies
Adjustments for
corrections of previous
errors
Other adjustments
2. Balances as at the
503,600,000.00 1,247,162,107.35 251,800,000.00 5,167,149,578.00 7,169,711,685.35
beginning of the year
~ 62 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
3. Increase/ decrease in
the period (“-” for -71,419,256.76 -71,419,256.76
decrease)
3.1 Total
683,980,743.24 683,980,743.24
comprehensive income
3.2 Capital increased
and reduced by owners
3.2.1 Ordinary
shares increased by
shareholders
3.2.2 Capital
increased by holders of
other equity
instruments
3.2.3 Share-based
payments included in
owners’ equity
3.2.4 Other
3.3 Profit
-755,400,000.00 -755,400,000.00
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to -755,400,000.00 -755,400,000.00
owners (or
~ 63 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
shareholders)
3.3.3 Other
3.4 Transfers within
owners’ equity
3.4.1 Increase in
capital (or share
capital) from capital
reserves
3.4.2 Increase in
capital (or share
capital) from surplus
reserves
3.4.3 Loss offset
by surplus reserves
3.4.4 Changes in
defined benefit pension
schemes transferred to
retained earnings
3.4.5 Other
comprehensive income
transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in
the period
~ 64 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
3.5.2 Used in the
period
3.6 Other
4. Balances as at the
503,600,000.00 1,247,162,107.35 0.00 251,800,000.00 5,095,730,321.24 7,098,292,428.59
end of the period
H1 2018
Unit: RMB
H1 2018
Other equity instruments Less: Other
Item Specific Surplus Retained Total owners’
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Other
Other reserve reserves earnings equity
shares bonds stock income
1. Balances as at the
503,600,000.00 1,247,162,107.35 53,454,736.38 251,800,000.00 4,103,151,843.38 6,159,168,687.11
end of the prior year
Add: Adjustments for
changed accounting
policies
Adjustments for
corrections of
previous errors
Other adjustments
2. Balances as at the
503,600,000.00 1,247,162,107.35 53,454,736.38 251,800,000.00 4,103,151,843.38 6,159,168,687.11
beginning of the year
3. Increase/ decrease
in the period (“-” for -45,064,475.58 -60,371,745.28 -105,436,220.86
decrease)
~ 65 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
3.1 Total
comprehensive -45,064,475.58 443,228,254.72 398,163,779.14
income
3.2 Capital
increased and
reduced by owners
3.2.1 Ordinary
shares increased by
shareholders
3.2.2 Capital
increased by holders
of other equity
instruments
3.2.3
Share-based
payments included in
owners’ equity
3.2.4 Other
3.3 Profit
-503,600,000.00 -503,600,000.00
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to -503,600,000.00 -503,600,000.00
owners (or
~ 66 ~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
shareholders)
3.3.3 Other
3.4 Transfers
within owners’ equity
3.4.1 Increase in
capital (or share
capital) from capital
reserves
3.4.2 Increase in
capital (or share
capital) from surplus
reserves
3.4.3 Loss offset
by surplus reserves
3.4.4 Changes in
defined benefit
pension schemes
transferred to
retained earnings
3.4.5 Other
comprehensive
income transferred to
retained earnings
3.4.6 Other
3.5 Specific
reserve
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
3.5.1 Increase in
the period
3.5.2 Used in
the period
3.6 Other
4. Balances as at the
503,600,000.00 1,247,162,107.35 8,390,260.80 251,800,000.00 4,042,780,098.10 6,053,732,466.25
end of the period
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
Anhui Gujing Distillery Company Limited
Notes to Financial Statements for H1 2019
(Currency Unit Is RMB Unless Otherwise Stated)
I. Company Profile
Authorized by document WGZGZ (1996) No.053 of Anhui Administrative Bureau of State-owned Property,
Anhui Gujing Distillery Company Limited (“the Company”) was established as a limited liability company with
net assets of RMB377,167,700 and state-owned shares of 155,000,000 shares and considered Anhui Gujing
Company as the only promoter. The registration place was Bozhou Anhui China. The Company was established
on 5 March 1996 by document of WZM (1996) No.42 of Anhui People’s Government. The Company set up
plenary session on 28 May 1996 and registered in Anhui on 30 May 1996 with business license of 14897271-1.
The Company has 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 RMB1.00
per share. Those A shares and B shares are listed in Shenzhen Stock exchange.
Headquarter of the Company is located in Gujing Bozhou Anhui. The Company and its subsidiaries (the Company)
specialize in producing and selling white spirit.
Registered capitals of the Company were RMB235,000,000 with stocks of 235,000,000, of which 155,000,000
shares were issued in China, B shares of 60,000,000 shares and A shares of 20,000,000 shares. The book value of
the stocks of the Company was of RMB1 per share.
On 29 May 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 27 June 2007, 11,750,000 outstanding shares with restrict condition on disposal are listed in stock market on 29
June 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 17 July 2008, 11,750,000 outstanding shares with restrict condition on disposal are listed in stock market on 18
July 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 24 July 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.
Approved by the CSRC Document Zheng-Jian-Xu-Ke [2011] No. 943, the Company privately offered 16,800,000
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ordinary shares (A-shares) to special investors on 15 July 2011, with a par value of RMB1 and the price of
RMB75.00 per share, raising RMB1,260,000,000.00 in total, the net amount of raised funds stood at
RMB1,227,499,450.27 after deducting RMB32,500,549.73 of various issuance expenses. Certified Public
Accountants verified the raised capital upon its arrival and issued the Capital Verification Report Reanda-Yan-Zi
[2011] No. 1065. After private issuance, the share capital of the Company increased to RMB251.8 million.
Pursuant to the Resolution of The 2011 Annual General Meeting, the Company that considered 251,800,000
shares as base number on 31 December 2011 transferred capital reserve into share capital at a rate of “10 shares
for per 10 shares” accounting for 251,800,000 shares and implemented in the year of 2012. Upon the transference,
the registered capitals increased to RMB503,600,000.
In April 2016, the Company entered a strategic cooperation agreement with Wuhan Tianlong Yellow Crane Tower
Co., Ltd., creating a new age for cooperation related to Chinese famous spirit. As the only Chinese famous spirit
in Hubei Province, it features unique mellow taste, elegant appearance and tempting smell. Moreover, Yellow
Crane Tower White Spirit won the Golden Prize respectively in 1984 and 1989 National White Spirit Appraisal
Competition as one of the business card representing Hubei Province’s economy. At present, the Company has
established three major bases in Wuhan, Xianning and Suizhou, of which, Xianning Base has integrated
modernism, ecologism and high technology as a new spirit-making base, known as “the most beautiful chateau in
China”. In 2016, Yellow Crane Tower Spirit won “2015 Top 10 Star Product in Hubei Province”.
By 30 June 2019, the Company issued 503,600,000 shares.
The Company is registered at Gujing Town, Bozhou City, Anhui Province.
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.
The Company as the parent and the final company as the parent is Anhui Gujing Company Co., Ltd in China.
Financial statement of the Company will be released on 23 August 2019 by the Board of Directors.
On 30 June 2019, there were 22 subsidiaries included in the consolidation scope. Please refer to Note VIII “Rights
and Interests in other Entities” for details. During the Reporting Period, only 1 subsidiary was added into the
consolidation scope when compared to that of the same period of last year. Please refer to Note VII “Change of the
Consolidation Scope” for details.
II. Basis for the Preparation of Financial Statements
1. Basis for the Preparation
With the going-concern assumption as the basis and based on transactions and other events that actually occurred,
the Company prepared financial statements in accordance with the ASBE-Basic Standard (No. 33 issued decreed
by Ministry of Finance and No. 76 revised decreed by Ministry of Finance), the 41 specific standards of
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Accounting Standards for Business Enterprises issued by Ministry of Finance of the PRC on 15 February 2006
and revised thereafter, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of
Accounting Standards for Business Enterprises and other regulations(hereinafter referred to as “the Accounting
Standards for Business Enterprises”, “China Accounting Standards” or “CAS”), Rules for Preparation Convention
of Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting (revised in
2014) by China Securities Regulatory Commission.
In line with relevant rules of ASBE, financial accounting of the Company is based on accrual system. Except
financial instruments and instrument real estate, the financial statement is calculated on the basis of history costs.
Available-for-sale non-current assets are calculated by the lower one of fair value deducting estimated costs and
original costs meeting the standard of available-for-sale. If assets confront impairment, it shall be withdrawn
provision for impairment in line with relevant stipulations.
2. Continuous Operation
The management of the Company executed the assessment on the continuation ability and had not discovered any
event or situation caused significant suspicion on the continuation ability. Thus, the financial statements compiled
based on the hypothesis of the continuation.
III. 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 of the Company on 30 June 2019, operating
results, cash flow from January to June in 2019 and other relevant information. The financial statement of the
Company met the relevant disclosure requirements of financial statement and notes of “Compiling stipulations of
public information disclosure No.15---general rules of financial statement” (revised in 2014).
IV. Main Accounting Policies and Accounting Estimates
The Company and various subsidiaries are mainly specialized in manufacturing and selling white spirit.
According to the actual production & operation and related ASBE provisions, this company and various
subsidiaries have formulated some specific accounting policies and estimations related to various transactions and
matters including revenue recognition. Please refer to Note IV. 24 “Revenues” for details. For any description of
major accounting judgment and estimations made by the company’s management, please refer to Note IV. 28
“Other Significant Accounting Policies and Estimates” for details.
1. Accounting Period
Accounting Period is divided to annual term and interim term. Accounting medium refers to reporting period
shorter than a complete accounting period. The Company employs a period of calendar days from January 1st to
December 31st each year as accounting year.
2. Operating Cycle
Normal operating cycle refers to the period from the Company purchases the assets for processing to realize the
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cash or cash equivalents. The Company regards 12 months as an operating cycle and regards which as the
partition criterion of the mobility of the assets and liabilities.
3. Bookkeeping Base Currency
Renminbi is the dominant currency used in the economic circumstances where the Company and its domestic
subsidiaries are involved. Therefore, the Company and its domestic subsidiaries use Renminbi as their
bookkeeping base currency. And the Company adopted Renminbi as the bookkeeping base currency when
preparing the financial statements for the reporting period.
4. Accounting Treatment Methods for Business Combinations Under the Same Control and those not Under
the Same Control
The term “business combinations” refers to a transaction or event bringing together two or more separate
enterprises into one reporting entity. Business combinations are classified into the business combinations under
the same control and the business combinations not under the same control.
(1) Accounting treatment of the business combination that is under the same control
A business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the business
combination, and that control is not transitory. The assets and liabilities obtained are measured at the carrying
amounts as recorded by the enterprise being combined at the combination date. The difference between the
carrying amount of the net assets obtained and the carrying amount of consideration paid for the combination (or
the total face value of shares issued) is adjusted to share premium in the capital reserve. If the balance of share
premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the
Company conducting business combinations is recognized in current profit and loss. The combination date is the
date on which one combining enterprise effectively obtains control of the other combining enterprises.
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.
Direct costs of a business combination shall be reckoned into current gains and losses.
(2) Accounting treatment of the business combination that is not under the same control
A business combination involving entities not under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the business
combination. In business combination not under the same control, acquirer refers to party obtaining control of
other combining corporations in the date of acquisition and acquiree refers to corporation participating in
combination. Date of acquire refers to the date the acquirer actually obtaining control of the acquiree.
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As for combination not under the same control, costs of combination includes assets that acquirers occur in the
date of combination in order to obtain control of acquirees, loans, fair value of issued equity securities,
intermediary costs such as audit, legal services and evaluation consultation, and other administrative fees occurred
in the reporting period. As for trading costs that acquirers as combination consideration issue equity securities or
debt securities, it shall be reckoned into initial accounts of equity securities or debt securities. As for business
combination realized by several exchanges and trades, in the combined financial statement of the Company, the
Company shall recalculate the stock right obtained by acquirees before the date of acquisition in line with fair
value of the stock right in the date of acquisition. When the Company acts as the combination party, the cost of a
business combination paid by the acquirer is the aggregate of the fair value at the acquisition date of assets given
(including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and
equity securities issued by the acquirer. Any excess of the cost of a business combination over the acquirer’s
interest in the fair value of the acquiree’s identifiable net assets is recognized as goodwill, while any excess of the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets over the cost of a business combination
is recognized in profit or loss. The cost of equity securities or liability securities as on combination consideration
offering is recognized in initial recording capital on equity securities or liability securities. Other direct expenses
occur when the Company conducting business combinations is recognized in current profit and loss. The
difference between the fair value and the carrying amount of the assets given is recognized in profit or loss. The
Company, at the acquisition date, recognized the acquiree’s identifiable asset, liabilities and contingent liabilities
at their fair value at that date. The acquisition date is the date on which the acquirer effectively obtains control of
the acquiree.
As for deductible temporary difference of acquirers obtained by acquirers which can’t be confirmed due to failure
of meeting the confirmation requirements of deferred income tax assets, if there is newly information proving the
existence of relevant situation in the date of acquisition in a year after the acquisition date and financial benefits of
deductible temporary difference of acquirers in the date of acquisition are estimated to be realized, deferred
income tax assets shall be confirmed. At the same time, goodwill shall be decreased. If goodwill is insufficient,
the difference shall be reckoned into current gains and losses; except the above circumstance, reliable deferred
income tax assets relevant to the Company shall be reckoned into current gains and losses.
For a business combination not involving enterprise under common control, which achieved in stages that
involves multiple exchange transactions, according to “The notice of the Ministry of Finance on the issuance of
Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article 51 of Accounting Standards for
Enterprises No. 33 – Consolidated Financial Statements on the “package deal” criterion (see Note IV. 5 (2)), to
judge the multiple exchange transactions whether they are the “package deal”. If it belongs to the “package deal”
in reference to the preceding paragraphs of this section and the Notes described in Note IV. 14 “long-term equity
investment” accounting treatment, if it does not belong to the “package deal” to distinguish the individual
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financial statements and the consolidated financial statements related to the accounting treatment:
In the individual financial statements, the sum of the book value and new investment cost of the Company holds
in the acquiree before the acquiring date shall be considered as initial cost of the investment. Other related
comprehensive gains in relation to the equity interests that the Company holds in the acquiree before the acquiring
date shall be treated on the same basis as the acquiree directly disposes the related assets or liabilities when
disposing the investment (that is, except for the corresponding share in the changes in the net liabilities or assets
with a defined benefit plan measured at the equity method arising from the acquiree’s re-measurement, the others
shall be transferred into current investment gains).
In the Company’s consolidated financial statements, as for the equity interests that the Company holds in the
acquiree before the acquiring date, they shall be re-measured according to their fair values at the acquiring date;
the positive difference between their fair values and carrying amounts shall be recorded into the investment gains
for the period including the acquiring date. Other related comprehensive gains in relation to the equity interests
that the Company holds in the acquiree before the acquiring date shall be treated on the same basis as the acquiree
directly disposes the related assets or liabilities when disposing the investment (that is, except for the
corresponding share in the changes in the net liabilities or assets with a defined benefit plan measured at the
equity method arising from the acquiree’s re-measurement, the others shall be transferred into current investment
gains on the acquiring date).
5. Methods for Preparing Consolidated Financial Statements
(1) Principle for determining the consolidation scope
The consolidation scope for financial statements is determined on the basis of control. The term “control” is the
power of the Company upon an investee, with which it can take part in relevant activities of the investee to obtain
variable returns and is able to influence the amount of returns. The consolidated financial statements comprise the
financial statements of the Company and its subsidiaries. A subsidiary is an enterprise or entity controlled by the
Company.
The Company would reassess it if the involved relevant factors of above control definitions changed, which was
caused by changes of relevant facts and situations.
(2) Methods for preparing the consolidated financial statements
The Company begins to include subsidiaries into consolidation scope from the date obtaining net assets of
subsidiaries and actual control of production and operation and terminates to include subsidiaries into
consolidation scope from the date losing actual control of subsidiaries. As for the disposal of subsidiaries,
operating results and cash flow are included in consolidated income statement and consolidated statement of cash
flow before the date of the disposal; as for current disposal of subsidiaries, opening balance of the consolidated
balance sheet shall not be adjusted. As for subsidiaries increased in the combination not under the same control,
operating results and cash flow after the date of the acquisition are included in consolidated income statement and
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consolidated statement of cash flow, in addition, opening balance of the consolidated balance sheet shall not be
adjusted. As for subsidiaries increased in the combination under the same control and combined parties under
acquisition, operating results and cash flow from the beginning of combination to the date of combination are
included in consolidated income statement and consolidated statement of cash flow, in addition, opening balance
of the consolidated balance sheet shall be adjusted.
Where a subsidiary was acquired during the reporting period, through a business combination involving entities
under common control, the financial statements of the subsidiary are included in the consolidated financial
statements as if the combination had occurred at the date that common control was established. Therefore the
opening balances and the comparative figures of the consolidated financial statements are restated. In the
preparation of the consolidated financial statements, the subsidiary’s assets, liabilities and results of operations are
included in the consolidated balance sheet based on their carrying amounts; while results of operations are
included in the consolidated income statement, from the date that common control was established.
All the significant inter-company balances, trading and unrealized profits shall be offset when preparing the
consolidated financial statement.
If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority
shareholders in a subsidy at owners’ equity at period-begin, its balance still offset minority shareholders’ equity.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the
Company makes necessary adjustments to the financial statements of the subsidiary based on the Company’s own
accounting period or accounting policies. Intra-Company balances and transactions, and any unrealized profit or
loss arising from intra-Company transactions, are eliminated in preparing the consolidated financial statements.
Unrealized losses resulting from intra-Company transactions are eliminated in the same way as unrealized gains
but only to the extent that there is no evidence of impairment.
When losing control right of subsidiaries because of the disposal of stock right investment or other reasons, the
Company shall recalculate residual stock right in accordance to the fair value in the date of losing control right. As
for remaining equity investment after disposal, the Company will re-account it according to the fair value at the
date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the
period of losing control right. Then follow-up measurement of remaining equity shall be arranged in line with “No.
2—Long-term Equity Investment” or “No. 22—Affirmation and Calculation of Financial Instrument”. More
details please refer to Note IV, 14 “Long-term Equity Investment” or Note IV, 9 “Financial Instrument”.
The Company through multiple transactions step deals with disposal of the subsidiary's equity investment until the
loss of control; need to distinguish between equity until the disposal of a subsidiary's loss of control over whether
the transaction is package deal. Terms of the transaction disposition of equity investment in a subsidiary, subject to
the following conditions and the economic impact of one or more of cases, usually indicates that several
transactions should be accounted for as a package deal: ① these transactions are considered simultaneously, or in
the case of mutual influence made, ② these transactions as a whole in order to achieve a complete business results;
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③ the occurrence of a transaction depends on occurs at least one other transaction ; ④ a transaction look alone is
not economical, but when considered together with other transaction is economical. If they do not belong to the
package deal, each of them separately, as the case of a transaction in accordance with “without losing control over
the disposal of a subsidiary part of long-term equity investments” (see Note IV. 14. (2) ④)) and “due to the
disposal of certain equity investments or other reasons lost control of a subsidiary of the original” (see previous
paragraph) principles applicable accounting treatment. Until the disposal of the equity investment loss of control
of a subsidiary of the transactions belonging to the package deal, the transaction will be used as a disposal of a
subsidiary and the loss of control of the transaction. However, before losing control of the price of each disposal
entitled to share in the net assets of the subsidiary's investment corresponding to the difference between the
disposals, recognized in the consolidated financial statements as other comprehensive income, loss of control over
the transferred together with the loss of control or loss in the period.
6. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above. The Company
classifies joint arrangements into joint operations and joint ventures according to its rights and duties in the joint
arrangements. A joint operation refers to a joint arrangement where the Company enjoys assets and has to bear
liabilities related to the arrangement. A joint venture refers to a joint arrangement where the Company is only
entitled to the net assets of the arrangement.
The Company’s investments in joint ventures are measured at the equity method according to the accounting
policies mentioned in Note IV. 14 (2) ② “Long-term equity investments measured at the equity method”.
For a joint operation, the Company, as a joint operator, recognizes the assets and liabilities that it holds and bears
in the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to the
Company’s stake in the joint operation; recognizes the income from sale of the Company’s share in the output of
the joint operation; recognizes the income from sale of the joint operation’s outputs according to the Company’s
stake in it; and recognizes the expense solely incurred to the Company and the expense incurred to the joint
operation according to the Company’s stake in it.
When the Company, as a joint operator, transfers or sells assets (the assets not constituting business, the same
below) to the joint operation, or purchases assets from the joint operation, before the assets are sold to a third party,
the Company only recognizes the share of the other joint operators in the gains and losses arising from the sale.
Where impairment occurs to the assets as prescribed in , the Company shall fully recognizes the loss for a transfer or sale of assets to a
joint operation; and shall recognize the loss according to its stake in the joint operation for a purchase of assets
from the joint operation.
7. Recognition Standard for Cash and Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and investments having
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short holding term (normally will be due within three months from the day of purchase), with strong liquidity and
easy to be exchanged into certain amount of cash that can be measured reliably and have low risks of change.
8. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency transactions
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying [the
spot exchange rate on the date of the transaction / an exchange rate that approximates the actual spot exchange
rate on the date of transaction]. The exchange of foreign currency and transactions related to the foreign exchange
are translated at the spot exchange rate.
(2) Accounting treatments for translation of foreign currency monetary items and non-monetary items
At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at the
balance sheet date. All the exchange differences thus resulted are taken to profit or loss, except for ① those
relating to foreign currency borrowings specifically for construction and acquisition of qualifying assets, which
are capitalized in accordance with the principle of capitalization of borrowing costs, ② hedging accounting, the
exchange difference related to hedging instruments for the purpose of net oversea operating investment is
recorded in the comprehensive income till the date of disposal and recognized in profit or loss of the period;
exchange difference from changes of other account balance of foreign currency monetary items, ③
available-for-trade is recorded into profit or loss except for amortized cost.
Non-monetary foreign currency items measured at historical cost shall still be translated at the spot exchange rate
prevailing on the transaction date, and the amount denominated in the functional currency is not changed.
Non-monetary foreign currency items measured at fair value are translated at the spot exchange rate prevailing at
the date when the fair values are determined. The exchange difference thus resulted are recognized in profit or loss
for the current period or as capital reserve.
9. Financial Instruments
The Company recognizes a financial asset or liability when it becomes a party of the relevant financial instrument
contract.
(1) Classification, recognition and measurement of financial assets
The Company classifies the financial assets into financial assets measured at amortized cost, financial assets
measured by the fair value and the changes recorded in other comprehensive income and financial assets at fair
value through profit or loss based on the business model for financial assets management and characteristics of
contractual cash flow of financial assets. Financial assets initially recognized shall be measured at their fair
values. For financial assets measured at their fair values and of which the variation is recorded into the profit or
loss of the current period, the transaction expenses thereof shall be directly included into the current profit or loss;
for other financial assets, the transaction expenses thereof shall be included into the initially recognized amount.
①Financial assets measured by the amortized cost
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The business mode of the Company to manage the financial assets targets at collecting the contractual cash flow,
that is, the cash flow generated in the specific date is the payment of the interest based on the principal and
outstanding principal amount. This kind of financial assets of the Company shall be subsequently measured based
on the amortized cost and effective interest method, and the gains or losses arising from the amortization,
impairment shall be included into current profit and loss.
②Financial assets measured at the fair value with its changes included into other comprehensive income
Business mode for managing financial assets of the Company takes contract cash flow collected as target and
selling as target. The Company calculates such financial assets as per fair value whose change is included into
corresponding comprehensive income, but impairment loss or gain, exchange gain or loss and interest income
calculated as per actual interest rate method are included into the current profit and loss. Furthermore, the
Company designates partial non-tradable equity vehicle investment as the financial asset measured with fair value
whose change is included into other comprehensive income. The Company includes the related dividend income
of such financial assets into the current profit and loss with the change in fair value included into other
comprehensive income. At the time of derecognition of such financial assets, accumulated gain or loss included
into other comprehensive income before will be shifted to retained earnings from other comprehensive incomes
but not included into the current profit and loss.
③Financial assets at fair value through profit or loss
The Company classifies financial assets except for above-mentioned financial assets measured with amortized
cost and financial assets measured with fair value whose change is included into other comprehensive income into
financial assets at fair value through profit or loss
(2) Classification, recognition and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through
profit or loss and financial liabilities measured with amortized cost.
①Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities which are subsequently
measured at fair value and the changes of fair value are recorded into the current profit or loss. When the liabilities
are derecognized, the difference between their fair values and their initial recorded amount was recognized as
investment income and at the same time the gains and losses of fair value shall be adjusted.
②Financial liabilities with amortized cost
Financial liabilities with amortized cost shall be subsequently measured at the amortized cost. And gains or losses
generated from derecognition or amortization shall be recorded into the current profit or loss.
(3) Recognition basis and measurement of financial assets transfer
A financial asset when one of the following conditions is met will be derecognized:
①the rights to receive cash flows from the asset have expired;
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②the enterprise has transferred its rights to receive cash flows from the asset to a third party under a pass-through
arrangement; or
③the enterprise has transferred its rights to receive cash flows from the asset and either (a) has transferred
substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, (a). the carrying amount of
the financial asset transferred; and (b) the sum of the consideration received from the transfer and any cumulative
gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss. If a part of
the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is
allocated between the part that continues to be recognized and the part that is derecognized, based on the relative
fair value of those parts. The difference between (a) the carrying amount allocated to the part derecognized; and
(b) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to
the part derecognized which has been previously recognized in other comprehensive income, is recognized in
profit or loss.
If the Company endorses the financial assets sold by right of recourse and holding financial assets, it needs to
confirm that whether almost all risks and remuneration in the ownership of financial assets have been transferred
or not. Where an enterprise has transferred nearly all of the risks and rewards related to the ownership of the
financial asset to the transferee, it shall stop recognizing the financial asset； If it retained nearly all of the risks
and rewards related to the ownership of the financial asset, it shall not stop recognizing the financial asset. If the
Company does not transfer or retain nearly all of the risks and rewards related to the ownership of the financial
asset, then it continuously judges that whether the Company retain the control of the assets, and conducts
accounting treatment according to the principles described in former paragraphs.
(4) De-recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the
financial liability be terminated in all or partly. Where the Company (debtor) enters into an agreement with a
creditor so as to substitute the existing financial liabilities by way of any new financial liability, and if the
contractual stipulations regarding the new financial liability is substantially different from that regarding the
existing financial liability, it terminates the recognition of the existing financial liability, and at the same time
recognizes the new financial liability. Where the recognition of a financial liability is totally or partially
terminated, the enterprise concerned shall include into the profits and losses of the current period for the gap
between the book value which has been terminated from recognition and the considerations it has paid (including
the non-cash assets it has transferred out and the new financial liabilities it has assumed)
(5) Determination of financial assets and liabilities’ fair value
For a financial instrument which has an active market, the Company uses quoted price in the active market to
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establish its fair value. For a financial instrument which does not have an active market, the Company establishes
fair value by using a valuation technique. In valuation, the Company adopts applicable valuation techniques
supported by sufficient utilizable data and other information in current circumstances, selects input values
consistent with asset or liability characteristics considered in relevant asset or liability transactions of market
participators and prioritizes the applying relevant observable input values. Unobservable input values shall not be
applied unless relevant observable input values are not accessible or feasible.
(6) Impairment of financial assets
The Company estimates the expected credit loss of financial assets measured at the amortized cost and those
measured at fair value and whose changes are included in other comprehensive income (debt instruments) based
on expected credit loss. The measurement of expected credit loss depends on whether the credit risk of financial
assets has increased significantly since the initial confirmation. In case of d significant increase, the Company
measures its loss provisions according to the amount equivalent to the expected credit loss of the financial
instrument during its entire life; otherwise, the Company measures its loss provisions according to the amount
equivalent to the expected credit loss of the financial instrument in the next 12 months, and the increased or
reversed amount of loss provisions resulting therefrom shall be included in profits and losses of the current period
as impairment losses or gains.
10. Notes Receivable
All notes receivable settled of the Company are bank’s acceptance bill and L/C. Based on the credit risk
characteristics of notes receivable and comprehensive evaluation of their credit risk characteristics, the Company
does not withdraw credit impairment losses for notes receivable.
11. Receivables
The receivables by the Company include accounts receivable, and other receivables.
(1) Criteria for recognition of bad debts:
The Company carries out an inspection on the balance sheet date. Where there is any objective evidence proving
that the receivables have been impaired, an impairment provision shall be made:
1) A serious financial difficulty occurs to the issuer or debtor;
2) The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of
interests or the principal, etc.;
3) The debtor will probably become bankrupt or carry out other financial reorganizations;
4) Other objective evidences showing the impairment of the receivables.
(2) Method for bad debts provision
① Provisions of bad debts in accounts receivables that is individually significant.
The Company recognized the accounts receivable which amounted to more than 2 million as the accounts
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receivable that is individual significant.
For an accounts receivable that is individually significant, the asset is individually assessed for impairment, the
impairment loss is recognized at the difference between the present value of future cash flow less the carrying
amount, and provision is made accordingly.
② Provisions of bad debts in accounts receivable that individually insignificant item with similar credit risk
characteristics that have significant risk:
A. Evidence of credit risk characteristics
Whether the financial asset is individually significant or not individually significant, it is included in a group of
financial assets with similar credit risk characteristics and collectively assessed for impairment. Such credit risk
reflects the repayment of all due amount under the contract, and is related to the estimation of future cash flow
expected to be derived from the assets.
Evidence of portfolios:
Item Basis
Age portfolios Age
Related party portfolios Companies within the combination scope of the Company
B. Provision by credit risk characteristics
During the Company impairment test, the amount of bad debts provisions is determined by the assessed result
from the experience of historical loss and current economic status and the existing loss in the estimated account
receivables according to the set of account receivables and credit risk characteristic.
Provision for different portfolios:
Item Provision
Age portfolios Age analysis method
Don’t withdraw the bad debts provision unless the related-party lost the repaying
Related party portfolios
capability
a. Portfolio by age analysis
Aging Proportion for accounts receivable (%) Proportion for other receivables (%)
Within 1 year (including 1 year, similarly hereinafter)
Including: [within 6 months] 1.00 1.00
[7 to 12 months] 5.00 5.00
1 to 2 years 10.00 10.00
2 to 3 years 50.00 50.00
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Aging Proportion for accounts receivable (%) Proportion for other receivables (%)
Over 3 years 100.00 100.00
③Accounts receivable with insignificant amount but being individually withdrawn 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. For example, accounts receivable of related parties;
accounts receivable involving dispute or litigation, arbitration; accounts receivable having clear signs to indicate
that debtor probably cannot implement obligations of payment.
(3) Reversal of provision for bad debt
If there is any provident demonstrating recovery of the value of the accounts receivable and objectively
correlating to the issues after the confirmation of the losses, the original confirmed losses would be reversed and
recorded into current gains and losses. However, the reserved book value shall not exceed the amortized costs of
the accounts receivable under non-withdrawing impairment circumstance.
12. Inventory
(1) Category of inventory
Inventory mainly includes raw materials, packing materials, self-made semi-manufactured products, goods in
process and finished goods, etc.
(2) Pricing method for outgoing inventories
Inventory is priced by actual costs when it is obtained. Inventory costs include procurement costs, processing
costs and other costs. Weighted average method is used to price inventory when it is received and delivered.
(3) Recognition basis of net realizable value and withdrawal method of falling price provision for inventories
Net realizable value in daily activity, it is referred to the estimated selling price minus the estimated selling
expenses and related tax and fees in normal operating process. When confirming the net realizable value of
inventories, the Company shall take the intention of inventories into consideration and influence of issues after
balance sheet date.
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.
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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 is perpetual inventory system
(5) Amortization method of the low-value consumption goods and packing articles
Low-value consumption goods: one-off amortization method; Packing articles: one-off amortization method
13. Assets Held for Sale and Disposal Group
The Company classifies a non-current asset or disposal group as held for sale if its carrying amount will be
recovered principally through a sale transaction rather than through continuing use. For this to be the case, the
following conditions shall be met: a) the asset (or disposal group) must be available for immediate sale in its
present condition subject to terms that are usual and customary for sales of such assets or disposal groups; b) the
company has made the resolution on the disposal plan and must be committed to a plan to sell the asset (or
disposal group); c) the sale is expected to be completed within one year from the date of classification. A disposal
group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and
liabilities directly associated with those assets that will be transferred in the transaction. The group shall include
goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been
allocated in accordance with the requirements of Accounting Standard for Business Enterprises No. 8 –
Impairment of assets.
The Company measure a non-current asset or disposal group classified as held for sale at the lower of its carrying
amount and fair value less costs to sell on initial recognition and subsequent remeasuremnt on the balance sheet
date. An impairment loss is recognized when the carrying amount is higher than the fair value less costs to sell,
and allowance for impairment is recognized accordingly. For the disposal group, the recognized impairment loss
on assets is offset against the carrying amount of the goodwill in the disposal group, and then reduced in
proportion of the book value of the non-current assets applicable to "Accounting Standard for Business
Enterprises No. 42 - Non-current Assets Held for Sale, Disposal Group and Discontinued Operations (hereinafter
referred to as "held for sale accounting principle") measurement requirements. The company shall recognize a
gain during the period for any subsequent increase in fair value less costs to sell of an asset, but not in excess of
the cumulative impairment loss that has been recognized after the reclassification to non-current assets held for
sale. The book value of assets in the disposal group is increased proportionately according to the proportion of the
book value of each non-current asset except for goodwill. Impairment loss recognized before the reclassification
to non-current assets held for sell shall not be recovered.
Non-current asset or non-current asset in the disposal group classified as held for sale is not subject to
depreciation or amortization. The interest and other expenses on liabilities held in the disposal group for sale are
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continuously recognized.
Non-current assets or disposal group that no longer meet the conditions of non-current asset held for sell shall be
removed from the category, and shall be measured at the lower of the following: (1) The carrying amount before
classification as held for sale after adjustment of depreciation, amortization or impairment that should be
recognized if it is not classified as non-current assets held for sell; (2) recoverable amount.
14. Long-term Equity Investments
The long-term equity investments of this part refer to the long-term equity investments that the Company has
control, joint control or significant influence over the investees. The long-term equity investment that the
Company does not have control, joint control or significant influence over the investees, should be recognized as
available-for-sale financial assets or be measured by fair value with the changes should be included in the
financial assets accounting of the current gains and losses, and please refer the details of the accounting policies to
Notes IV. 9 “Financial instrument”.
Joint control, refers to the control jointly owned according to the relevant agreement on an arrangement by the
Company and the relevant activities of the arrangement should be decided only after the participants which share
the control right make consensus. Significant influence refers to the power of the Company which could anticipate
in the finance and the operation polices of the investees, but could not control or jointly control the formulation of
the policies with the other parties.
(1) Recognition of investment costs
As for long-term equity investments acquired by enterprise merger, if the merger is under the same control, the
share of the book value of the owner’s equity of the merged enterprise, on the date of merger, is regarded as the
initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity
investment and the payment in cash, non-cash assets transferred as well as the book value of the debts borne by
the merging party shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained
earnings shall be adjusted. If the consideration of the merging enterprise is that it issues equity securities, it shall,
on the date of merger, regard the share of the book value of the shareholder's equity of the merged enterprise on
the consolidated financial statement of the ultimate control party as the initial cost of the long-term equity
investment. The total face value of the stocks issued shall be regarded as the capital stock, while the difference
between the initial cost of the long-term equity investment and total face value of the shares issued shall offset
against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted.
The equities of the combined party which respectively acquired through multiple transaction under the same
control that ultimately form into the combination of the enterprises under the same control, should be disposed
according whether belongs to package deal; if belongs to package deal, each transaction would be executed
accounting treatment by the Company as a transaction of acquiring the control right. If not belongs to package
deal, it shall, on the date of merger, regard the enjoyed share of the book value of the shareholder's equity of the
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merged enterprise on the consolidated financial statement of the ultimate control party as the initial cost of the
long-term equity investment, and as for the difference between the initial investment cost of the long-term equity
investment and sum of the book value of the long-term equity investment before the combination and the book
value of the consideration of the new payment that further required on the combination date, should adjust the
capital reserve; if the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The equity
investment held before the combination date which adopted the equity method for accounting, or the other
comprehensive income confirmed for the available-for-sale financial assets, should not have any accounting
disposal for the moment.
For the long-term investment required from the business combination under different control, the initial
investment cost regarded as long-term equity investment on the purchasing date according to the combination cost,
the combination costs shall be the sum of the fair values of the assets paid, the liabilities incurred or assumed and
the equity securities issued by the Company. The equities of the acquirees which respectively acquired through
multiple transaction that ultimately form into the combination of the enterprises under the different control, should
be disposed according whether belongs to package deal; if belongs to package deal, each transaction would be
executed accounting treatment by the Company as a transaction of acquiring the control right. If not belongs to
package deal, the sum of the book value of the original held equity investment of the acquirees and the newly
added investment cost should be regarded as the initial investment cost of the long-term equity investment that
changed to be accounted by cost method. If the original held equity is calculated by cost method, the other
relevant comprehensive income would not have any accounting disposal for the moment. If the original held
equity investment is the financial assets available for sale, its difference between the fair value and the book value
as well as the accumulative changes of the fair value that include in the other comprehensive income, should
transfer into the current gains and losses.
The commission fees for audit, law services, assessment and consultancy services and other relevant expenses
occurred in the business combination by the combining party or the purchase 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.
Besides the long-term equity investments formed by business combination, the other long-term equity investments
shall be initially measured by cost, the cost is fixed in accordance with the ways of gaining, such as actual cash
payment paid by the Company, the fair value of equity securities issued by the Company, the agreed value of the
investment contract or agreement, the fair value or original carrying amount of exchanged assets from
non-monetary assets exchange transaction, the fair value of the long-term equity investments, etc. The expenses,
taxes and other necessary expenditures directly related with gaining the long-term equity investments shall also be
recorded into investment cost. The long-term equity investment cost for those could execute significant influences
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on the investees because of appending the investment or could execute joint control but not form as control,
should be as the sum of the fair value of the original held equity investment and the newly added investment cost
recognized according to the No. 22 of Accounting Standards for Business Enterprises—Recognition and
Measurement of Financial Instrument.
(2) Subsequent measurement and recognition of gains or losses
A long-term equity investment where the investing enterprise has joint control (except for which forms into
common operators) or significant influence over the investors should be measured by equity method. Moreover,
long-term equity investment adopting the cost method in the financial statements, and which the Company has
control on invested entity.
① Long-term equity investment measured by adopting cost method
The price of a long-term equity investment measured by adopting the cost method shall be included at its initial
investment cost and append as well as withdraw the cost of investing and adjusting the long-term equity
investment. 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.
②Long-term equity investment measured by adopting equity method
If the initial cost of a long-term equity investment is more than the Company’s attributable share of the fair value
of the invested entity’s identifiable net assets for the investment, the initial cost of the long-term equity investment
may not be adjusted. If the initial cost of a long-term equity investment is less than the Company’s attributable
share of the fair value of the invested entity’s identifiable net assets for the investment, the difference shall be
included in the current profits and losses and the cost of the long-term equity investment shall be adjusted
simultaneously.
When measured by adopting equity method, respectively recognize investment income and other comprehensive
income according to the net gains and losses as well as the portion of other comprehensive income which should
be enjoyed or be shared, and at the same time adjust the book value of the long-term equity investment;
corresponding reduce the book value of the long-term equity investment according to profits which be declared to
distribute by the investees or the portion of the calculation of cash dividends which should be enjoyed; for the
other changes except for the net gains and losses, other comprehensive income and the owners’ equity except for
the profits distribution of the investees, should adjust the book value of the long-term equity investment as well as
include in the capital reserve. The investing enterprise shall, on the ground of the fair value of all identifiable
assets of the invested entity when it obtains the investment, recognize the attributable share of the net profits and
losses of the invested entity after it adjusts the net profits of the invested entity. If the accounting policies adopted
by the investees is not accord with that of the Company, should be adjusted according to the accounting policies of
the Company and the financial statement of the investees during the accounting period and according which to
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recognize the investment income as well as other comprehensive income. For the transaction happened between
the Company and associated enterprises as well as joint ventures, if the assets launched or sold not form into
business, the portion of the unrealized gains and losses of the internal transaction, which belongs to the Company
according to the calculation of the enjoyed proportion, should recognize the investment gains and losses on the
basis. But the losses of the unrealized internal transaction happened between the Company and the investees
which belongs to the impairment losses of the transferred assets, should not be neutralized. The assets launched by
the Company to the associated enterprises or the joint ventures if could form into business, the long-term equity
investment without control right which acquired by the investors, should regard the fair value of the launched
business as the initial investment cost the newly added long-term equity investment, and for the difference
between the initial investment cost and the book value of the launched business, should be included into the
current gains and losses with full amount. The assets sold by the Company to the associated enterprises or the
joint ventures if could form into business, the difference between the acquired consideration and the book value of
the business should be included in the current gains and losses with full amount. The assets purchased by the
Company to the associated enterprises or the joint ventures if could form into business, should be accounting
disposed according to the regulations of No. 20 of ASBE—Business Combination, and should be recognized gains
or losses related to the transaction with full amount.
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. However, if the Company has the obligation to undertake extra losses, it shall
be recognized as the estimated liabilities in accordance with the estimated duties and then recorded into
investment losses at current period. If the invested entity realizes any net profits later, the Company shall, after the
amount of its attributable share of profits offsets against its attributable share of the un-recognized losses, resume
recognizing its attributable share of profits.
For the long-term equity investment held by the Company before the first execution of the new accounting
criterion of the associated enterprises and joint ventures, if there is debit difference of the equity investment
related to the investment, should be included in the current gains and losses according to the amount of the
straight-line amortization during the original remained period.
③ Acquiring shares of minority interest
In the preparation for the financial statements, the balance existed between the long-term equity investment
increased by acquiring shares of minority interest and the attributable net assets on the subsidiary calculated by
the increased shares held since the purchase date (or combination date), the capital reserves shall be adjusted, if
the capital reserves are not sufficient to offset, the retained profits shall be adjusted.
④ Disposal of long-term equity investment
In the preparation of financial statements, the Company disposed part of the long-term equity investment on
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subsidiaries without losing its controlling right on them, the balance between the disposed price and attributable
net assets of subsidiaries by disposing the long-term equity investment shall be recorded into owners’ equity;
where the Company losses the controlling right by disposing part of long-term equity investment on such
subsidiaries, it shall treated in accordance with the relevant accounting policies in Note IV. 5 (2) “Method on
preparation of combined financial statements”.
For other ways on disposal of long-term equity investment, the balance between the book value of the disposed
equity and its actual payment gained shall be recorded into current profits and losses.
For the long-term equity investment measured by adopting equity method, if the remained equity after disposal
still adopts the equity method for measurement, the other comprehensive income originally recorded into owners’
equity should adopt the same basis of the accounting disposal of the relevant assets or liabilities directly disposed
by the investees according to the corresponding proportion. The owners’ equity recognized owning to the changes
of the other owners’ equity except for the net gains and losses, other comprehensive income and the profits
distribution of the investees, should be transferred into the current gains and losses according to the proportion.
For the long-term equity investment which adopts the cost method of measurement, if the remained equity still
adopt the cost method, the other comprehensive income recognized owning to adopting the equity method for
measurement or the recognition and measurement standards of financial instrument before acquiring the control of
the investees, should adopt the same basis of the accounting disposal of the relevant assets or liabilities directly
disposed by the investees and should be carried forward into the current gains and losses according to the
proportion; the changes of the other owners’ equity except for the net gains and losses, other comprehensive
income and the profits distribution among the net assets of the investees which recognized by adopting the equity
method for measurement, should be carried forward into the current gains and losses according to the proportion.
For those the Company lost the control of the investees by disposing part of the equity investment as well as the
remained equity after disposal could execute joint control or significant influences on the investees, should change
to measure by equity method when compiling the individual financial statement and should adjust the
measurement of the remained equity to equity method as adopted since the time acquired; if the remained equity
after disposal could not execute joint control or significant influences on the investees, should change the
accounting disposal according to the relevant regulations of the recognition and measurement standards of
financial instrument, and its difference between the fair value and book value on the date lose the control right
should be included in the current gains and losses. For the other comprehensive income recognized by adopting
equity method for measurement or the recognition and measurement standards of financial instrument before the
Company acquired the control of the investees, should execute the accounting disposal by adopting the same basis
of the accounting disposal of the relevant assets or liabilities directly disposed by the investees when lose the
control of them, while the changes of the other owners’ equity except for the net gains and losses, other
comprehensive income and the profits distribution among the net assets of the investees which recognized by
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adopting the equity method for measurement, should be carried forward into the current gains and losses
according to the proportion. Of which, for the disposed remained equity which adopted the equity method for
measurement, the other comprehensive income and the other owners’ equity should be carried forward according
to the proportion; for the disposed remained equity which changed to execute the accounting disposal according to
the recognition and measurement standards of financial instrument, the other comprehensive income and the other
owners’ equity should be carried forward in full amount.
For those the Company lost the control of the investees by disposing part of the equity investment, the disposed
remained equity should change to calculate according to the recognition and measurement standards of financial
instrument, and difference between the fair value and book value on the date lose the control right should be
included in the current gains and losses. For the other comprehensive income recognized from the original equity
investment by adopting the equity method, should execute the accounting disposal by adopting the same basis of
the accounting disposal of the relevant assets or liabilities directly disposed by the investees when terminate the
equity method for measurement, while for the owners’ equity recognized owning to the changes of the other
owner’s equity except for the net gains and losses, other comprehensive income and the profits distribution of the
investees, should be transferred into the current investment income with full amount when terminate adopting the
equity method.
The Company respectively disposes the equity investment of the subsidiaries through multiple transactions until
lose the control right, if the above transactions belongs to the package deal, should execute the accounting
disposal by regarding each transaction as a deal of disposing the equity investment of the subsidiaries until lose
the control right, while the difference between each expenses of the disposal and the book value of the long-term
equity investment in accord with the disposed equity before losing the control right, should firstly be recognized
as other comprehensive income then be transferred into the current gains and losses of losing the control right
along until the time when lose it.
15. 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. Besides, for the idle
constructions held by the Company for operation and lease, if the Board of Directors (or the similar institutions)
made the written resolutions which affirmatively disclosed to use which for operation and lease with the intention
would not change in the short term, should also be presented as the investment property.
Investment property is initially measured at cost. Subsequent expenditures related to an investment real estate are
likely to flow about the economic benefits of the asset and its cost can be measured reliably, is included in the cost
of investment real estate. Other subsequent expenditures of gains or losses should be recorded in the current gains
and losses when occurred.
The Company uses the cost model for subsequent measurement of investment property, and in accordance with
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the depreciation or amortization of buildings or land use rights policy.
Investment property impairment test method and impairment accrual method described in Note IV. 20 “Long-term
assets impairment”.
Occupied real estate for investment property or investment property is transferred to owner-occupied real estate or
stock conversion as the recorded value after the conversion, according to the book value before the conversion.
From the date of transference, investment properties shall be transferred into fixed assets or intangible assets when
investment properties transfer into self-owned properties. From the date of transference, fixed assets or intangible
assets shall be transferred into investment properties when the intention of self-owned properties changes to be
earning rents. Upon transference, investment properties using cost modeling shall use its book value before
transference as the entry value after transference; investment properties using fair value shall use its fair value in
the date of transference as the entry value after transference.
As for investment property disposed or perpetually out of use, and estimated without economic benefits from the
disposal, confirmation shall be terminated. Disposal consideration of the investment property after sale,
transference, discard or damage deducting its book value and relating taxes shall be recorded into current gains
and losses.
16. Fixed Assets
(1) Recognized standard of fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are
held for the sake of producing commodities, rendering labor service, renting or business management; and their
useful life is in excess of one fiscal year.
(2) Depreciation methods of fixed assets
The initial measurement of a fixed asset shall be made at its cost after considering the effect of expected discard
expenses. The Group shall withdraw the depreciation of fixed assets by adopting the straight-line method since the
second month of its useful life. Useful life, expected net salvage value (refers to the expected amount that the
Group may obtain from the current disposal of a fixed asset after deducting the expected disposal expenses at the
expiration of its expected useful life) and annual depreciation rate of each fixed assets are as below:
Expected net salvage
Category of fixed assets Method Useful life (Y) Annual deprecation (%)
value (%)
Housing and building Straight-line method 8.00-35.00 3.00-5.00 2.70-12.10
Machinery equipments Straight-line method 5.00-10.00 3.00-5.00 9.50-19.40
Transportation vehicle Straight-line method 4.00 3.00 24.25
Office equipment and Straight-line method 3.00 3.00 32.33
others
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Expected net residual value of fixed assets is the balance of the Company currently obtained from the disposal of
the asset less the estimated costs of disposal amount, assuming the asset is out of useful life and state the expected
service life in the end.
(3) Measurement and recognition of fixed assets impairment
Impairment and provisions of fixed assets are disclosed on Note IV. 21 “Long-term assets impairment”.
(4) Fixed Assets under finance leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset.
Title may or may not eventually be transferred. Fixed assets that are held under finance leases shall be depreciated
by applying the same policy as that for the fixed assets owned by the Company. If it can be reasonably determined
that the ownership of the leased assets can be obtained at the end of the lease period, the leased assets are
depreciated over their useful lives; otherwise, the leased assets are depreciated over the shorter of the lease terms
and the useful lives of the leased assets.
(5) Others
A fixed asset is recognized only when the economic benefits associated with the asset will probably flow to the
Company and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that
meet the recognition criteria shall be included in the cost of the fixed asset, and the carrying amount of the
component of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall be
recognized in profit or loss in the period in which they are incurred.
The revenue from selling or transferring, or disposing a fixed asset is booked into profit and loss after deduction
of carrying value and related tax.
The Company conducts a review of useful life, expected net realizable value and depreciation methods of the
fixed asset at least on an annual base. Any change is regarded as change in accounting estimates.
17. Construction in Progress
Construction in progress is measured at its actual cost. The actual costs include various construction expenditures
during the construction period, borrowing costs capitalized before it is ready for intended use and other relevant
costs. Construction in progress is transferred to a fixed asset when it is ready for intended use.
Testing method for provision impairment of construction in progress and accrued method for provision
impairment please refer to Note IV. 21 “Long-term assets impairment”.
18. Borrowing Costs
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary costs
incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign
currency borrowings. The borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized. The amounts of other borrowing costs incurred are recognized as
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an expense in the period in which they are incurred. Qualifying assets are asset (fixed assets, investment property
and inventories, etc.) that necessarily take a substantial period of time for acquisition, construction or production
to get ready for their intended use or sale.
Where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest
expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed
funds before being used on the asset or any investment income on the temporary investment of those funds. Where
funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is
determined by applying a weighted average interest rate to the weighted average of the excess amounts of
accumulated expenditure on the asset over and above the amounts of specific-purpose borrowings.
During the capitalization period, exchange differences related to a specific-purpose borrowing denominating in
foreign currency are all capitalized. Exchange differences in connection with general-purpose borrowings are
recognized in profit or loss in the period in which they are incurred.
Assets qualified for capitalization are the fixed assets, investment properties or inventories which need a long time
of construction or production activities before ready for intended used or sale.
Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production
of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for its intended use
or sale, when the interruption is for a continuous period of more than 3 months. Borrowing costs incurred during
these periods recognized as an expense for the current period until the acquisition, construction or production is
resumed.
19. Intangible Assets
(1) Intangible asset
The term “intangible asset” refers to the identifiable non-monetary assets without physical shape, possessed or
controlled by enterprises.
The intangible assets are initially measured by its cost. Expenses related to intangible assets, if the economic
benefits related to intangible assets are likely to flow into the enterprise and the cost of intangible assets can be
measured reliably, shall be recorded as cost of intangible assets. The expenses other than this shall be booked in
the profit or loss when they occur.
Land use rights that are purchased by the Company are accounted for as intangible assets. Buildings, such as
plants that are developed and constructed by the Company, and relevant land use rights and buildings, are
accounted for as intangible assets and fixed assets, respectively. Payments for the land and buildings purchased
are allocated between the land use rights and the buildings; if they cannot be reasonably allocated all of the land
use rights and buildings should accounted for as fixed assets.
When an intangible asset with a definite useful life is available for use, its original cost less net residual value and
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any accumulate impairment losses is amortized over its estimated useful life using the straight-line method. An
intangible asset with an indefinite useful life is not amortized.
For an intangible asset with a definite useful life, the Company reviews the useful life and amortization method at
the end of the period, and makes adjustment when necessary. An additional review is also carried out for useful
life of the intangible assets with indefinite useful life. If there is evidence showing the foreseeable limit period of
economic benefits generated to the enterprise by the intangible assets, then estimate its useful life and amortize
according to the policy of intangible assets with definite useful life.
(2) Research and development cost
Cost of research and development is distinguished into the research phase and the development phases.
Cost of the research phase is recognized in the profit or loss in the period in which it is incurred.
Unless the following conditions are satisfied, cost of the development phase is recognized in the profit or loss in
the period in which it is incurred:
① it is technically feasible to complete the intangible asset so as to use it or sell it;
② it is clearly invented to complete the intangible asset in order to use it or sell it;
③ it is probable that the intangible asset is capable of generating future economic benefit, such as the market for the
product produced by the intangible asset or the intangible asset itself, it is objectively evidential that the intangible
asset is economically usable if it is going to be used internally;
④ there are sufficient technical, financial and other resources to complete the intangible asset and to use it or sell it;
⑤ the cost of the development of the intangible can be measured reliably.
If the cost cannot be distinguished into the search phase and the development phase, it is recognized in the profit
or loss for the period in which it is incurred.
(3) Impairment of intangible assets
Impairment and provisions of intangible assets are disclosed on Note IV. 21 “Long-term assets impairment”.
20. Long-term Deferred Expenditure
An item long-term deferred expenses is an expense which has been incurred and which has a beneficial period (a
period during which an expense is expected to bring economic benefits to an entity) which is longer than one year
and which includes at least part of the reporting period during which the expense was incurred and subsequent
reporting periods. An item of long-term deferred expenses is recognized at the actual amount of the expense
incurred and allocated in each month of the beneficial period using the straight line method.
21. Long-term Assets Impairment
Non-financial assets with non-current nature include fixed assets, construction in progress, intangible assets with
definite useful lives, investment properties measured by cost methods and long-term equity investment on
subsidiaries, jointly operations. The Company assesses whether there are any indicators of impairment for all
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non-financial assets at the balance sheet date, and impairment test is carried out and recoverable value is estimated
if such an indicator exits. Goodwill and intangible assets with indefinite useful lives, as well as intangible assets
not ready for use, are tested for impairment annually regardless of indicators of impairment.
Impairment of loss is calculated and provisions taken by the difference if the recoverable value of the assets is
lower than the book value. The recoverable value is the higher of estimated present value of the future expected
cash flows from the asset and net fair value of the asset less disposed cost. The fair value of asset is determined by
the sales agreement price within an arm’s length transaction. In case there is no sales agreement, but there is active
market of assets, the fair value can be determined by the selling price. If there is neither sales agreement nor active
market, the fair value of the asset can be estimated based on the best information obtained. Disposal expenses
include expenses related to the legislation, taxes, transportations and the direct expense for the asset to be ready
for sale. When calculating the present value of expected future cash flows from an asset or asset Group, the
management shall estimate the expected future cash flows from the asset or asset Group and choose a suitable
discount rate in order to calculate the present value of those cash flows.
Provision for asset impairment is calculated and determined on the individual basis. If the recoverable of
individual asset is hard to estimate, the recoverable amount can be determined by the asset Group where subject
asset belongs. Asset Group is the smallest set of assets that can have cash flow in independently.
The Company determines whether goodwill is impaired at least on an annual basis. This requires an estimation of
the present value of the future expected cash flows from the asset Groups or sets of asset Groups to which the
goodwill is allocated. Estimating the present value requires the Company to make an estimate of the expected
future cash flows from the asset Groups or sets of asset Groups and also choose a suitable discount rate in order to
calculate the present value of those cash flows.
Once the loss from above asset impairment is recognized, the recoverable part cannot be reserved in the
subsequent periods.
22. Payroll
The payroll of the Company mainly includes the short-term employee compensation, welfare after demission,
demission welfare and other long-term employee benefits. Of which:
Short-term compensation mainly including salary, bonus, allowances and subsidies, employee services and
benefits, medical insurance premiums, birth insurance premium, industrial injury insurance premium, housing
fund, labor union expenditure and personnel education fund, non-monetary benefits etc. The short-term
compensation actually happened during the accounting period when the active staff offering the service for the
Group should be recognized as liabilities and is included in the current gains and losses or relevant assets cost. Of
which the non-monetary benefits should be measured according to the fair value.
Welfare after demission mainly includes setting drawing plan. Of which setting the drawing plan mainly includes
basic endowment insurance, unemployment insurance and annuity etc, and the corresponding payable and deposit
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amount should be included into the relevant assets cost or the current gains and losses when happen.
If an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant labor
contract or brings forward any compensation proposal for the purpose of encouraging the employee to accept a
layoff, and should recognize the payroll liabilities occurred from the demission welfare base on the earlier date
between the time when the Group could not one-sided withdraw the demission welfare which offered by the plan
or layoff proposal owning to relieve the labor relationship and the date the Group recognizes the cost related to the
reorganization of the payment of the demission welfare and at the same time includes which into the current gains
and losses. But if the demission welfare is estimated that could not totally pay after the end of the annual report
within 12 months, should be disposed according to other long-term payroll payment.
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion welfare.
The group would recorded the salary and the social security insurance fees paid and so on from the employee’s
service terminative date to normal retirement date into current profits and losses (dismiss ion welfare) under the
condition that they meet the recognition conditions of estimated liabilities.
The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan, should be
accounting disposed according to the setting drawing plan, while the rest should be disposed according to the
setting revenue plan.
23. Provisions
Recognition of accrued liabilities:
Obligation with contingency factor such as external hypothecate, lawsuit or arbitrage in dispute, guarantee on
quality of product, cut-down plan, loss of contract, recombine obligation, obligation on abandon fixed asset, and
meet the follow condition simultaneously would determined as liabilities: (1) This obligation is current obligation
of the Company; and, (2) The performance of this obligation will probably cause economic benefits outflow of the
Company; and, (3) The amount of this obligation can be reliably measured.
On balance sheet date the Company performed relate obligation that consider risk, incertitude, time value of
currency of contingency factor. According to the best estimate of the expenditure required to settle the present
obligation for estimated liabilities measured.
If the expenditure required to settle the liability is expected to be fully or partly compensated by a third party, to
determine the amount of compensation will be received at the basic, separately recognized as an asset, and is
recognized in the amount of compensation does not exceed the carrying value of estimated liabilities.
24. Revenues
(1) Commodity sales revenues
No revenue from selling goods may be recognized unless the following conditions are met simultaneously: the
significant risks and rewards of ownership of the goods have been transferred to the buyer by the enterprise; the
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enterprise retains neither continuous management right that usually keeps relation with the ownership nor
effective control over the sold goods; the relevant amount of revenue can be measured in a reliable way; the
relevant economic benefits may flow into the enterprise; and the relevant costs incurred or to be incurred can be
measured in a reliable way.
In the Company’s daily accounting practices, as for the domestic sales, when the products had shipped out of the
library and had handed over to the buyers, and the major risk as well as the reward on the ownership of the
products had transferred to them, without keeping any continued management right which commonly related to
the ownership nor carrying out any effective control of the products which had been sold, and at the same time the
amounts received could be calculated reliably, and the relevant economic interest may flow into the enterprise, as
well as the relevant costs which had occurred or is going to occur could be calculated reliably, should recognize
the implementation of the commodity sales revenues. As for the overseas sales, should recognize the
implementation of the revenues when the goods had made shipment and gained the customs export declaration.
(2) Revenues from providing labor services
If an enterprise can 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 on the balance
sheet date. The percentage-of-completion is determined by the proportion of the costs incurred against the
estimated total costs.
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: ① The amount of revenue can be measured in a reliable
way; ② The relevant economic benefits are likely to flow into the enterprise; ③ The schedule of completion under
the transaction can be confirmed in a reliable way; ④ The costs incurred or to be incurred in the transaction can be
measured in a reliable way.
If the Company can not 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: If the cost of labor
services incurred is expected to be compensated, the compensation amount for the cost of labor services shall be
recognized as the revenue from providing labor service, and the cost of labor service incurred shall be as the
current cost; if the cost of labor services incurred is not expected to compensate, no revenue from the providing of
labor services may be recognized.
Where a contract or agreement signed between Group and other enterprises concerns selling goods and providing
of labor services, if the part of sale of goods and the part of providing labor services can be distinguished from
each other and can be measured respectively, the part of sale of goods and the part of providing labor services
shall be treated respectively. If the part of selling goods and the part of providing labor services can not be
distinguished from each other, or if the part of sale of goods and the part of providing labor services can be
distinguished from each other but can not be measured respectively, both parts shall be conducted as selling
goods.
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(3) Royalty revenue
In accordance with relevant contract or agreement, the amount of royalty revenue should be recognized as revenue
on accrual basis. In the Company’s daily accounting practices, it should be calculated and recognized according to
the chargeable time and methods in accordance with the relevant contract or agreement.
(4) Interest revenue
In accordance with the time that others use the Group’s monetary capital and the actual rate.
25. Government Subsidies
Government grants are transfer of monetary assets and non-monetary assets from the government to the Company
at no consideration, excluding the capital invested by the government as equity owner. Government grant can be
classified as grant related to the assets and grants related to the income. The government grants which were
acquired by the Company will be used to purchase or otherwise form become long-term assets will be defined as
grant related to the assets; the others will be defined as grants related to the income. If the files have not clearly
defined government grants objects, it will be divided in the following manner compartmentalize the grants into
rant related to the assets and grants related to the income: (1) government documents defined specific projects
targets, according to the relative proportion of the budgets of specific items included the expenditure of to form
assets and the expenditure will be charged into expense to be divided, the division ratio required at each balance
sheet date for review and make changes if necessary; (2) government documents to make a general presentation
purposes only, does not specify a particular project, as grants related to the income.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or
receivable. If a government grant is in the form of a non-monetary asset, it is measured at fair value. If the fair
value cannot be reliably determined, it is measured at a nominal amount. A government grant measured at a
nominal amount is recognized immediately in profit or loss for the period.
When received the government grants actually, recognized and measured them by the actual amount received.
However, there is strong evidence that the end of fiscal support policies able to meet the conditions specified in
the relevant funds are expected to be able to receive financial support, measured at the amount receivable.
Government grants are measured according to the amount receivable shall also comply with the following
conditions: (1) grants receivable of government departments issued a document entitled have been confirmed, or
could reasonably estimated in accordance with the relevant provisions of its own official release of financial
resources management approach, and the expected amount of a material uncertainty which does not exist; (2) it is
based on the local financial sector to be officially released and financial support for the project and its financial
fund management approach voluntarily disclosed in accordance with the provisions of “Regulations on Disclosure
Government Information”, and the management approach should be (inclusive of any compliance business
conditions may apply), and not specifically formulated for specific businesses;(3) related grants approval has been
clearly committed the deadline, and is financed by the proceeds of a corresponding budget as a guarantee, so that
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will be received within the prescribed period with the a reasonable assurance; (4) according to the specific
circumstances of the Company and the subsidy matter, should satisfy the other conditions (if any).
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss
over the useful life of the related asset in a reasonable and systematic manner. For a government grant related to
income, if the grant is a compensation for related expenses or losses to be incurred in subsequent period, the grant
is recognized as deferred income, and recognized in profit or loss over the periods in which the related costs are
recognized. If the grant is a compensation for related expenses or losses already incurred, the grant is recognized
immediately in profit or loss for the period.
Government subsidies including both assets-related parts and income-related parts should be treated separately. If
it is difficult to separate, the government subsidies as a whole will be classified as income-related government
grants.
The government grants related to the daily activities of the Company are included in other income or offset the
related costs according to the essence of the economic business. The government grants unrelated to the daily
activities are included in the non-operating income and expenses.
For repayment of a government grant already recognized, if there is a related deferred income, the repayment is
offset against the carrying amount of the deferred income, and any excess is recognized in profit or loss for the
period. If there is no related deferred income, the repayment is recognized immediately in profit or loss for the
period.
26. Deferred Tax Assets and Deferred Tax Liabilities
(1) Income tax for the current period
At the balance sheet date, current income tax liabilities or assets for the current and prior periods are measured at
the amount expected to be paid (or recovered) according to the requirements of tax laws. The calculation for
income tax expenses in the current period is based on the taxable income according to the related tax laws after
adjustment to the accounting profit of the reporting period.
(2) Deferred income tax assets and liabilities
For temporary differences between the carrying amount of certain assets or liabilities and their tax base, or
between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base
that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance
sheet liability method.
For temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset
or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor
taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized. For
taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint
ventures, no deferred income tax liability related is recognized except where the Company is able to control the
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timing of reversal of the temporary difference and it is probable that the temporary difference will not reverse in
the foreseeable future. All deferred income tax liabilities arising from taxable temporary differences except the
ones mentioned above are recognized.
For temporary deductible differences associated with the initial recognition of an asset or liability arising from a
transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible
losses) at the time of transaction, no deferred tax asset is recognized. For taxable temporary deductible differences
associated with investments in subsidiaries and associates, and interests in joint ventures, no deferred income tax
asset related is recognized if it is impossible to reversal the temporary difference in the foreseeable future, or it is
not probable to obtain taxable income which can be used for the deduction of the temporary difference in the
future. Except mentioned above, the Company recognizes other deferred income tax assets that can deduct
temporary differences to the extent that it is probable that taxable profits will be available against which the
deductible temporary differences can be utilized.
For the deductible losses and tax credit that can be carried forward, deferred tax assets for deductible temporary
differences are recognized to the extent that it is probable that taxable profits will be available against which the
deductible temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates according to tax laws,
which are expected to apply in the period in which the asset is realized or the liability is settled.
At the balance sheet date, the Company reviews the carrying amount of deferred tax assets. If it is no longer
probable that sufficient taxable profit will be available in future periods to allow the benefits of the deferred tax
assets to be used, the Company reduces the carrying amount of deferred tax assets. The amount of such reduction
is reversed when it becomes probable that sufficient taxable profit will be available.
(3) Income tax expenses
Income tax expenses consist of current income tax and deferred income tax.
The expenses from income tax and deferred income tax, as well as the revenue, shall be recorded into profit or
loss in current accounting period, except expense for income tax of the current period and deferred income tax
that booked into other income or equity and adjusted carrying value of deferred income tax goodwill arose from
business combination.
(4) Income tax offset
When we have the legal right, and have intended to, to make settlement with net amount or through the asset
acquisition and liability fulfillment simultaneously, the Company shall present the net value from the offset
between current income tax asset and current income tax liability in the financial statement.
When the Company has the legal right to make a settlement with the current income tax asset and current income
tax liability, and the deferred income tax asset and deferred income tax liability are related to the same taxable
subject under the same tax payer, or related to different taxable subject, but the intension of net value settlement in
regard of the current income tax asset and current income tax liability, the Company shall present net value after
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the offset of deferred income tax asset and deferred income tax liability.
27. Leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset.
Title may or may not eventually be transferred. An operating lease is a lease other than a finance lease.
(1) The Company as Lessee under operating Lease
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term,
and either included in the cost of the related asset or charged to profit or loss for the current period. The contingent
rents shall be recorded in the profit or loss of the period in which they actually arise.
(2) The Company as Leaser under operating Lease
Lease income from operating leases shall be recognized by the leaser in profit or loss on a straight-line basis over
the lease term. Initial direct cost of significance in amount shall be capitalized when incurred. If another basis is
more systematic and rational, that basis may be used. Contingent rents are credited to profit or loss in the period in
which they actually arise.
(3) The Company as Lessee under financing Lease
For an asset that is held under a finance lease, at the lease commencement, the leased asset is recorded at the
lower of its fair value at the lease commencement and the present value of the minimum lease payments, and the
minimum lease payment is recorded as the carrying amount of the long-term payables; the difference between the
recorded amount of the leased asset and the recorded amount of the payable is accounted for as unrecognized
finance charge, Initial direct costs incurred by the lessee during the process of negotiating and securing the lease
agreement shall be added to the amount recognized for the leased asset. The net amount of minimum lease
payment deducted by the unrecognized finance shall be separated into long-term liabilities and long-term liability
within one year for presentation.
Unrecognized finance charge shall be computed by the effective interest method during the lease term. Contingent
rent shall be booked into profit or loss when actually incurred.
(4) In the case of the lessor of a financing lease
For an asset that is leased out under a finance lease, the aggregate of the minimum lease receipts at the inception
of the lease and the initial direct costs is recorded as a finance lease receivable, and unguaranteed residual value is
recorded at the same time; the difference between the aggregate of the minimum lease receipt, initial direct costs,
and unguaranteed residual value, and the aggregate of their present values, is recognized as unearned finance
income, which is amortized using the effective interest rate method over each period during the lease term.
Finance lease receivable less unearned finance income shall be separated into long-term liabilities and long-term
liability within one year for presentation.
Unearned finance income shall be computed by the effective interest method during the lease term. Contingent
rent shall be credited into profit or loss in which actually incurred.
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28. Other Significant Accounting Policies and Estimates
The Company is required to make judgments, estimates and assumptions about the carrying amounts of items in
the financial statements that cannot be measured accurately, due to the internal uncertainties of operation activities.
These judgments, estimates and assumptions are based on historical experiences of the Company’s management
as well as other factors that are considered to be relevant. These judgments, estimates and assumptions may affect
value of the financial statements in revenue, expenses, assets and liabilities and the disclosure of contingency at
the balance sheet date. However, the result derived from those uncertainties in estimates may lead significant
adjustments to the carrying amounts of the assets or liabilities affected in the future.
The Company has reviews the judgments, estimates and assumptions regularly on the basis of going concern.
Where the changes in accounting estimates only affect the period when changes occurred, and they are recognized
within the same period. Where the changes in accounting estimates affect both current period and future period,
the changes are recognized within the period of change and future period.
At balance sheet date, the followings are the significant areas where the Company needs to make judgment,
estimates and assumptions over the value of items in the financial statements:
(1) Classification of lease
The Company classifies leases as operating lease and financing lease according to the rule stipulated in the
Accounting Standard for Business Enterprises No. 21—Leasing. The management shall make analysis and
judgment on whether the risks and rewards related to the title of leased assets has been transferred to the leaser, or
whether the Company has substantially held the risks and rewards related to the ownership of leased assets.
(2) Allowance for bad debt
According to the relevant accounting policies of the Company in receivables, allowance method is used for bad
debt’s calculation. The impairment of receivables is calculated based on the assessment of recoverable of
receivables. Assurance of receivable impairment needs judgments and estimations from the management. The
difference between actual results and original estimates shall have impact on the carrying amount of receivables
and receivable bad debt provisions or the reverse during the change of estimation.
(3) Impairment of inventories
The Company measures inventories by the lower of cost and realizable net value according to the accounting
policies in regard of inventories and provisions for decline in value of inventories are made if the cost is higher
than their net realizable value and obsolete and slow-movement inventories. Inventories decline in value to net
realizable value is the estimated selling price in the ordinary course of business. Net realizable value is determined
on the basis of clear evidence obtained, and takes into consideration the purposes of holding inventories and effect
of post balance sheet events. The difference between the actual result and the original estimates shall have impact
on reverse of the carrying amount of the inventories and their decline in value or provisions during the period of
change.
(4) The fair value of financial instruments
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For a financial instrument which has no active market, the Company establishes fair value by using various
valuation methods, including of discounted cash flow analysis model. The Company needs to estimate future cash
flow, credit risk, volatility and relationship during the valuation and choose appropriate discount rate. Such
assumptions have uncertainties and their changes shall have impact on the fair value of financial instruments.
(5) Impairment of long-term assets
The Company assesses whether there are any indicators of impairment for all non-current assets other than
financial assets at the balance sheet date. For an intangible asset that has indefinite useful life, impairment test is
made in addition to the annual impairment test if there is any indication of impairment. For non-current assets
other than financial assets, impairment test is made when there is any indication that its account balance cannot be
recovered.
Impairment exists when the recoverable amount of an asset is the higher of its fair value less cost of disposal and
present value of the future cash flows expected to be derived from the asset.
Net value between the difference of fair value and disposal cost is determined by reference of the price of similar
product in a sale agreement in an arm’s length transaction or an observable market price less the additional cost
directly attributable to the disposal of the asset.
When estimating the present value of future cash flow, significant judgments are made over the asset’s production,
selling price and relevant operating expenses, and discount rate used to calculate present value. All available
materials that are considered to be relevant shall be used in the estimation of recoverable value. These materials
include estimations of production, selling price and operating expenses based on reasonable and supportable
assumptions.
The Company makes an impairment test for goodwill at least at each year end. This requires an estimation of
present value of future cash flow of the assets or assets group where goodwill has been allocated. The Company
shall makes estimation on the future cash flow derived from assets or assets group and determine an appropriate
discount rate for the present value of future cash flow when the estimation of present value of future cash flow is
made.
(6) Depreciation and amortization
Investment property, fixed assets and intangible assets are depreciated and amortized using the straight-line
method over their useful lives after taking into account residual value. The useful lives are regularly reviewed to
determine the depreciation and amortization costs charged in each reporting period. The useful lives are
determined based on historical experience of similar assets and the estimated technical changes. If there is an
indication that there has been a change in the factor used to determine the depreciation or amortization, the rate of
depreciation or amortization is revised.
(7) Deferred tax assets
The group shall recognize all unused tax losses as deferred tax assets to the extent that it is probable that future
taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. This
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requires the management of the Company make a lot of judgments over the estimation of time period, value and
tax planning strategies when future taxable profit incurs so that the value of deferred tax assets can be determined.
(8) Income tax
There are some transactions where ultimate tax treatments and calculations have uncertainties in the Company’s
everyday operation. If it is possible for any item to make expenditure before tax that needs to be approved from
competent tax authorities. If there is any difference between finalized determination value and their initial
estimations value, the difference shall have the impact on the income tax and deferred income tax of the current
period during the final determination.
(9) Provisions
According with the terms of the contract, the existing knowledge and historical experience, product quality
assurance and expected contract losses, delay in delivery of liquidated damages are estimated and recognized as
accrued liabilities. In these matters has been the formation of a current obligation, and fulfilling the duty is likely
to lead to the outflow of economic benefits of the Company, the Company or the best estimate of the current
obligation expenditure required recognized as a accrued liabilities. Recognition and measurement of accrued
liabilities is dependent on the judgment of management. In the processing of judgment the company needed to
appraise the related risks, uncertainties and time value of money and other factors.
29. Changes in Main Accounting Policies and Estimates
(1) Significant Changes in Accounting Policies
Contents of changes in accounting policies
Approval procedures Note
and reasons thereof
The Ministry of Finance issued the Notice
on Revising and Issuing of Formats of
2019 Financial Statements for General
Enterprises (CK[2019]No.6) (hereinafter
referred to as “Revising Notice”) on 30
April 2019, in which the formats of
financial statements for general enterprises
are revised and non-financial enterprises For details, please refer to the
Reviewed and approved on the 10th
carrying out accounting standards for announcement on changes in accounting
Meeting of the 8th Board of Directors and
business enterprises are required to prepare policies disclosed on
the 9th Meeting of the 8th Supervisory
the financial statements for 2019, H1 of http://www.cninfo.com.cn
Committee
2019 and subsequent periods in accordance
with provisions stipulated in accounting
standards for business enterprises and the
Revising Notice. The Company belongs to
the company that has implemented the new
standards governing financial instruments
but not carried out the new standards
governing revenue and new standards
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Gujinggong Liquor Aged Original Liquor Interim Report 2019
governing leases. The Company adjusted
the formats of financial statements and
presentation of some items as required by
the Revising Notice.
In line with provisions of the Revising Notice, the Company adjusted the formats of financial statements as
follows:
① Balance sheet
The item of “notes receivable and accounts receivable” is split into two items of “notes receivable” and “accounts
receivable”;
The item of “notes payable and accounts payable” is split into two items of “notes payable” and “accounts
payable”;
The item of “financing backed by accounts receivable” is added to reflect the notes receivable and accounts
receivable measured at fair value and changes thereof recorded into other comprehensive income on the balance
sheet date.
② Income statement
The “less: asset impairment loss” is adjusted into “add: asset impairment loss (“-“ for loss)”;
The “less: credit impairment loss” is adjusted into “add: credit impairment loss (“-“ for loss);
For the item of “R&D expense”, the amortization of developing intangible assets recorded into administrative
expense is supplemented;
The item of “income from the derecognition of financial assets at amortized cost” is added to reflect gains or
losses of the Company from the derecognition of financial assets at amortized cost due to cases like transfer. This
item shall be filled based on the amount of classification item related to “investment income”, and “-“ for loss.
③ Cash flow statement
For cash flow statements, the filling requirements governing government subsidies are clarified that government
subsidies no matter related to assets or income are presented in the item of “cash generated from other operating
activities”.
④ Statements of changes in owners’ equity
For statements of changes in owners’ equity, the filling requirements governing “capital increased by holders of
other equity instruments” are clarified to reflect the amount of capital increased by holders of financial
instruments except ordinary shares issued by the Company and classified as equity instruments. The item is filled
based on the amount of classification item related to financial instruments.
(2) Significant Changes in Accounting Estimates
Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases
~104~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 1,705,760,865.12 1,705,760,865.12
Settlement reserve
Interbank loans granted
Trading financial assets 0.00 2,965,016,000.42 2,965,016,000.42
Financial assets at fair
622,892.96 0.00 -622,892.96
value through profit or loss
Derivative financial assets
Notes receivable 1,347,427,811.34 1,347,427,811.34
Accounts receivable 29,748,068.74 29,748,068.74
Financing backed by
accounts receivable
Prepayments 182,558,000.75 182,558,000.75
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 43,342,878.22 43,342,878.22
Including: Interest
24,923,178.08 24,923,178.08
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 2,407,306,664.86 2,407,306,664.86
Contract assets
Assets classified as held
for sale
Current portion of
300,000,000.00 300,000,000.00
non-current assets
Other current assets 3,012,478,687.20 254,478,687.20 -2,758,000,000.00
Total current assets 9,029,245,869.19 9,235,638,976.65 206,393,107.46
Non-current assets:
Loans and advances to
~105~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
customers
Investments in debt
obligations
Available-for-sale financial
206,393,107.46 0.00 -206,393,107.46
assets
Investments in other debt
obligations
Held-to-maturity
investments
Long-term receivables
Long-term equity
4,900,000.00 4,900,000.00
investments
Investments in other equity
instruments
Other non-current financial
assets
Investment property 5,027,228.53 5,027,228.53
Fixed assets 1,763,988,530.56 1,763,988,530.56
Construction in progress 93,320,557.56 93,320,557.56
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 742,083,609.10 742,083,609.10
R&D expense
Goodwill 478,283,495.29 478,283,495.29
Long-term prepaid
83,561,473.46 83,561,473.46
expense
Deferred income tax assets 86,580,171.06 86,580,171.06
Other non-current assets 16,544,407.51 16,544,407.51
Total non-current assets 3,480,682,580.53 3,274,289,473.07 -206,393,107.46
Total assets 12,509,928,449.72 12,509,928,449.72
Current liabilities:
Short-term borrowings
Borrowings from central
bank
Interbank loans obtained
Trading financial liabilities
~106~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Financial liabilities at fair
value through profit or loss
Derivative financial
liabilities
Notes payable 349,203,413.72 349,203,413.72
Accounts payable 484,952,598.59 484,952,598.59
Advances from customers 1,149,143,310.48 1,149,143,310.48
Financial assets sold under
repurchase agreements
Customer deposits and
interbank deposits
Payables for acting trading
of securities
Payables for underwriting
of securities
Payroll payable 457,299,476.43 457,299,476.43
Taxes payable 372,993,624.18 372,993,624.18
Other payables 1,192,020,147.82 1,192,020,147.82
Including: Interest
payable
Dividends
payable
Handling charges and
commissions payable
Reinsurance payables
Contract liabilities
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
Other current liabilities 295,164,745.44 295,164,745.44
Total current liabilities 4,300,777,316.66 4,300,777,316.66
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred
shares
~107~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income 76,636,500.55 76,636,500.55
Deferred income tax
102,764,515.11 102,764,515.11
liabilities
Other non-current
liabilities
Total non-current liabilities 179,401,015.66 179,401,015.66
Total liabilities 4,480,178,332.32 4,480,178,332.32
Owners’ equity:
Share capital 503,600,000.00 503,600,000.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 1,295,405,592.25 1,295,405,592.25
Less: Treasury stock
Other comprehensive
4,794,830.59 0.00 -4,794,830.59
income
Specific reserve
Surplus reserves 256,902,260.27 256,902,260.27
General reserve
Retained earnings 5,541,281,341.47 5,546,076,172.06 4,794,830.59
Total equity attributable to
owners of the Company as 7,601,984,024.58 7,601,984,024.58
the parent
Non-controlling interests 427,766,092.82 427,766,092.82
Total owners’ equity 8,029,750,117.40 8,029,750,117.40
Total liabilities and owners’
12,509,928,449.72 12,509,928,449.72
equity
Note for adjustment:
In 2017, the Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments (CK[2017]No.7) , the Accounting Standards for Business Enterprises No. 23 – Transfer of
Financial Assets (CK[2017]No.8), the Accounting Standards for Business Enterprises No. 24 – Hedging Accounting
~108~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
(CK[2017]No.9), and the Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments
(CK[2017]No.14). The Company starts to implement aforesaid new standards since 1 January 2019. In line with the link up rules,
when the data of financial statements involved in prior years are inconsistent with the new standards, no adjustment is necessary.
Specific items and amount thereof affected are presented in above adjustment statements.
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 1,078,172,917.59 1,078,172,917.59
Trading financial assets 0.00 1,807,016,000.42 1,807,016,000.42
Financial assets at fair
622,892.96 0.00 -622,892.96
value through profit or loss
Derivative financial assets
Notes receivable 1,256,336,386.34 1,256,336,386.34
Accounts receivable 9,385,950.54 9,385,950.54
Financings backed by
accounts receivable
Prepayments 10,869,911.54 10,869,911.54
Other receivables 110,800,665.19 110,800,665.19
Including: Interest
receivable
Dividends
receivable
Inventories 2,125,826,967.11 2,125,826,967.11
Contract assets
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets 1,764,267,968.83 164,267,968.83 -1,600,000,000.00
Total current assets 6,356,283,660.10 6,562,676,767.56 206,393,107.46
Non-current assets:
Investments in debt
obligations
Available-for-sale financial
206,393,107.46 0.00 -206,393,107.46
assets
Investments in other debt
obligations
~109~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Held-to-maturity
investments
Long-term receivables
Long-term equity
1,148,213,665.32 1,148,213,665.32
investments
Investments in other equity
instruments
Other non-current financial
assets
Investment property 24,715,657.40 24,715,657.40
Fixed assets 1,290,714,455.79 1,290,714,455.79
Construction in progress 86,634,753.93 86,634,753.93
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 189,968,142.25 189,968,142.25
R&D expense
Goodwill
Long-term prepaid
56,643,945.05 56,643,945.05
expense
Deferred income tax assets 37,415,458.17 37,415,458.17
Other non-current assets 12,474,026.00 12,474,026.00
Total non-current assets 3,053,173,211.37 2,846,780,103.91 -206,393,107.46
Total assets 9,409,456,871.47 9,409,456,871.47
Current liabilities:
Short-term borrowings
Trading financial liabilities
Financial liabilities at fair
value through profit or loss
Derivative financial
liabilities
Notes payable 28,648,913.72 28,648,913.72
Accounts payable 362,290,556.21 362,290,556.21
Advances from customers 1,123,125,892.84 1,123,125,892.84
Contract liabilities
Payroll payable 117,748,485.96 117,748,485.96
Taxes payable 161,176,957.25 161,176,957.25
~110~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Other payables 372,902,293.22 372,902,293.22
Including: Interest
payable
Dividends
payable
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
Other current liabilities 32,605,794.55 32,605,794.55
Total current liabilities 2,198,498,893.75 2,198,498,893.75
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax
36,417,554.85 36,417,554.85
liabilities
Other non-current
4,828,737.52 4,828,737.52
liabilities
Total non-current liabilities
Total liabilities 41,246,292.37 41,246,292.37
Owners’ equity: 2,239,745,186.12 2,239,745,186.12
Share capital
Other equity instruments 503,600,000.00 503,600,000.00
Including: Preferred
shares
Perpetual
bonds
Capital reserves
Less: Treasury stock 1,247,162,107.35 1,247,162,107.35
~111~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Other comprehensive
income
Specific reserve 4,794,830.59 0.00 -4,794,830.59
Surplus reserves
General reserve 251,800,000.00 251,800,000.00
Retained earnings 5,162,354,747.41 5,167,149,578.00 4,794,830.59
Total owners’ equity 7,169,711,685.35 7,169,711,685.35
Total liabilities and owners’
9,409,456,871.47 9,409,456,871.47
equity
Note for adjustment:
In 2017, the Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments (CK[2017]No.7) , the Accounting Standards for Business Enterprises No. 23 – Transfer of
Financial Assets (CK[2017]No.8), the Accounting Standards for Business Enterprises No. 24 – Hedging Accounting
(CK[2017]No.9), and the Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments
(CK[2017]No.14). The Company starts to implement aforesaid new standards since 1 January 2019. In line with the link up rules,
when the data of financial statements involved in prior years are inconsistent with the new standards, no adjustment is necessary.
Specific items and amount thereof affected are presented in above adjustment statements.
V. Taxation
1. Main Taxes and Tax Rate
Category of taxes Particulars about specific tax rate
Income tax was in accordance with 16%,13%, 10%,9% and 6% of tax rate to calculate
VAT output tax and according to the balance of the current the deductibility deduct the input
tax to calculate value added tax.
Sales of wine RMB1 per 1000 ml or per kg to calculate the amount of consumption tax,
Consumption tax a flat rate, 20% of the annual turnover to calculate the amount of consumption tax at
valorem.
Urban maintenance and construction tax 1%, 5%, 7% of the actual taxable turnover amount.
Education expenses surcharge 3% of the actual taxable turnover amount.
Local education surcharge 2% of the actual taxable turnover amount.
Enterprise income tax For details, see the table below.
Table of income tax rate of different entities:
Name of the entities Income tax rate
Anhui Longrui Glass Co., Ltd 15%
Anhui Ruisiweier Technology Co., Ltd 15%
Bozhou Gujin Rubbish Recycling Co., Ltd 5%
~112~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Name of the entities Income tax rate
Wuhan Yashibo Technology Co., Ltd 5%
Hubei Hechuanyuan Trade Co., Ltd 5%
Anhui Gujing Distillery Company Limited and its other
5%
subsidiaries
Anhui Longrui Glass Co., Ltd 25%
2. Tax Preference and Approval
(1) On 5 December 2016, the Company’s subsidiary Anhui Longrui Glass Co., Ltd. was attested to be qualified as
a hi-tech enterprise and obtained Hi-tech Enterprise Certificate (NO. GR201634001204) which shall be valid in 3
years. Corresponding corporate income tax was also paid at the rate of 15% from January to June in 2019;
(2) On 21 October 2016, the Company’s subsidiary Anhui Swisse Will Science & Technology Co., Ltd. was
attested to be qualified as a hi-tech enterprise and obtained Hi-tech Enterprise Certificate (NO. GR201634000832)
which shall be valid in 3 years. Corresponding corporate income tax was also paid at the rate of 15% from January
to June in 2019;
(3) According to Notification for implementation of inclusive income tax relief policy for small enterprises with
low profits (Financial and taxation (2019) No. 13), published by Ministry of Finance of the People’s Republic of
China and State Administration of Taxation, from 1 January 2019 to 31 December 2021, for small enterprises with
low profits, of which the annual taxable income amount is under RMB1 million, the income tax deduction shall be
50% of the taxable income amount and the corporate income tax rate shall be reduced to 20%; and for the part of
the annual taxable income amount exceeds RMB1 million but less than RMB3 million, the income tax deduction
shall be 50% of the taxable income amount and the corporate income tax rate shall be reduced to 20%. For
subsidiaries of the Company, Bozhou Gujing Recycling Co., Ltd, Wuhan Yashibo Technology Co., Ltd., Hubei
Junhe Advertising Co., Ltd. and Hubei Yellow Crane Tower Beverage Co., Ltd., which satisfy conditions for small
enterprises with low profits, the actual prevailing tax shall be reduced to 5% from January to June in 2019.
VI. Notes on Major Items in Consolidated Financial Statements of the Company
The following notes (including notes on major items in consolidated financial statements of the Company), unless
otherwise noted, the opening period was 1 January 2019, the closing period was 30 June 2019.
1. Monetary Funds
Item Ending balance Beginning balance
Cash in treasury 374,122.81 353,429.67
Bank deposit 3,164,869,696.55 1,705,175,643.46
Other monetary funds 14,090,694.21 231,791.99
~113~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Ending balance Beginning balance
Total 3,179,334,513.57 1,705,760,865.12
Of which: The total amount deposited in overseas 0.00 0.00
Note: At the end of this period, the amount of RMB770 million is structural time deposit of the bank deposit that
cannot be withdrawn in advance before the due date; at the end of this period, the amount of RMB13,960,226.78
was restricted for pledge due to the opening of bank’s acceptance bill among the other monetary fund. There’s no
limitation and restriction on the usage and remittance of funds deposited abroad due to pledge and mortgage, etc.
2. Trading Financial Assets
Item Ending balance Beginning balance
Financial assets at fair value through profit
1,573,596,291.10 2,965,016,000.42
or loss
Of which:
Equity instrument investment 217,596,291.10 207,016,000.42
Other 1,356,000,000.00 2,758,000,000.00
Total 1,573,596,291.10 2,965,016,000.42
3. Notes Receivable
(1) Notes receivable Listed by Category
Item Ending balance Beginning balance
Bank acceptance bill 1,317,423,562.34 1,347,427,811.34
Trade acceptance bill 0.00 0.00
Total 1,317,423,562.34 1,347,427,811.34
(2) Notes Receivable Pledged at the Period-end
Item Pledged amount at the period-end
Bank acceptance bill 159,686,231.66
Trade acceptance bill 0.00
Total 159,686,231.66
(3) Notes Receivable which had Endorsed by the Company or had Discounted and had not Due on the Balance
Sheet Date at the Period-end
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
Bank acceptance bill 1,257,471,419.07 0.00
~114~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
Trade acceptance bill 0.00 0.00
Total 1,257,471,419.07 0.00
4. Accounts Receivable
(1) Accounts Receivable Classified by Category
Ending balance
Carrying amount Bad debt provision
Category Carrying
Proport Amoun Withdrawal
Amount value
ion (%) t proportion (%)
Accounts receivable with significant single amount for which bad debt
0.00 0.00 0.00 0.00 0.00
provision separately accrued
Accounts receivable withdrawal of bad debt provision of by credit risks 30,811,51 724,824 30,086,69
100.00 2.35
characteristics: 7.08 .38 2.70
Accounts receivable with insignificant single amount for which bad debt
0.00 0.00 0.00 0.00 0.00
provision separately accrued
30,811,51 724,824 30,086,69
100.00 2.35
Total 7.08 .38 2.70
(Continued)
Beginning balance
Carrying amount Bad debt provision
Category Carrying
Proport Amoun Withdrawal
Amount value
ion (%) t proportion (%)
Accounts receivable with significant single amount for which bad debt
0.00 0.00 0.00 0.00 0.00
provision separately accrued
Accounts receivable withdrawal of bad debt provision of by credit risks 30,397,35 649,289 29,748,06
100.00 2.14
characteristics: 8.01 .27 8.74
Accounts receivable with insignificant single amount for which bad debt
0.00 0.00 0.00 0.00 0.00
provision separately accrued
Total 30,397,35 100.00 649,289 2.14 29,748,06
~115~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Beginning balance
Carrying amount Bad debt provision
Category Carrying
Proport Amoun Withdrawal
Amount value
ion (%) t proportion (%)
8.01 .27 8.74
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision
Ending balance
Aging Withdrawal proportion
Account receivable Bad debt provision
(%)
Within 1 year 29,358,361.66 422,193.75 1.44
[Of which: within 6 months] 26,143,108.14 261,431.08 1.00
[7-12 months] 3,215,253.52 160,762.67 5.00
1 to 2 years 1,277,227.55 127,722.76 10.00
2 to 3 years 2,040.00 1,020.00 50.00
Over 3 years 173,887.87 173,887.87 100.00
Total 30,811,517.08 724,824.38 2.35
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
The reversed amount of the bad debt provision during the Reporting Period was of RMB75,535.11.
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
There was no actual verification of accounts receivable during the Reporting Period.
(4) Top Five of the Ending Balance of the Accounts Receivable Collected According to the Arrears Party
The total amount of top five of account receivable of ending balance collected by arrears party was
RMB12,677,581.98, 41.15% of total closing balance of account receivable, the relevant ending balance of bad
debt provision withdrawn was RMB246,974.31.
5. Prepayment
(1) List by Aging Analysis
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 125,311,525.02 96.48 182,122,465.92 99.76
1 to 2 years 4,576,890.83 3.52 145,534.83 0.08
~116~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
2 to 3 years 0.00 0.00 0.00
Over 3 years 0.00 0.00 290,000.00 0.16
Total 129,888,415.85 100.00 182,558,000.75 100.00
(2) Top Five of the Ending Balance of the Prepayment Collected According to the Prepayment Target
The total amount of top five of account receivable of ending balance collected by arrears party was
RMB60,552,355.25, 46.62% of total ending balance of account receivable.
6. Other Accounts Receivable
Item Ending balance Beginning balance
Interest receivable 30,443,178.08 24,923,178.08
Dividend receivable 0.00 0.00
Other accounts receivable 18,085,233.37 18,419,700.14
Total 48,528,411.45 43,342,878.22
(1) Interest Receivable
Item Ending balance Beginning balance
Interest of certificate of deposit 30,443,178.08 24,923,178.08
Total 30,443,178.08 24,923,178.08
(2) Other Accounts Receivable
① Other Accounts Receivable Disclosed by Category
Ending balance
Carrying amount Bad debt provision
Category Propor Carrying
Withdrawal
Amount tion Amount value
proportion (%)
(%)
Other accounts receivable with significant single amount for which bad 40,850,9 40,850,9
67.12 100.00 0.00
debt provision separately accrued 49.35 49.35
Other accounts receivable withdrawn bad debt provision according to 20,009,4 1,924,17 18,085,2
32.88 9.62
credit risks characteristics 05.04 1.67 33.37
Other accounts receivable with insignificant single amount for which 0.00 0.00 0.00 0.00 0.00
~117~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending balance
Carrying amount Bad debt provision
Category Propor Carrying
Withdrawal
Amount tion Amount value
proportion (%)
(%)
bad debt provision separately accrued
60,860,3 42,775,1 18,085,2
Total 100.00 70.28
54.39 21.02 33.37
(Continued)
Beginning balance
Carrying amount Bad debt provision
Category Withdrawal
Proportion Carrying value
Amount Amount proportion
(%)
(%)
Other accounts receivable with significant single
amount for which bad debt provision separately 40,850,949.35 67.20 40,850,949.35 100.00 0.00
accrued
Other accounts receivable withdrawn bad debt
19,942,837.52 32.80 1,523,137.38 7.64 18,419,700.14
provision according to credit risks characteristics
Other accounts receivable with insignificant
single amount for which bad debt provision 0.00 0.00 0.00 0.00 0.00
separately accrued
Total 60,793,786.87 100.00 42,374,086.73 69.70 18,419,700.14
A. Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
Ending balance
Other accounts receivable (by unit) Other accounts Bad debt Withdrawal proportion
Withdrawal reason
receivable provision (%)
29,010,449.35 29,010,449.35 100.00 Enter enterprise bankruptcy
Hengxin Securities Co., Ltd.
liquidation
11,840,500.00 11,840,500.00 100.00 Enter enterprise bankruptcy
Jianqiao Securities Co., Ltd.
liquidation
~118~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending balance
Other accounts receivable (by unit) Other accounts Bad debt Withdrawal proportion
Withdrawal reason
receivable provision (%)
29,010,449.35 29,010,449.35 100.00 Enter enterprise bankruptcy
Hengxin Securities Co., Ltd.
liquidation
Total 40,850,949.35 40,850,949.35 100.00
B. In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision
Ending balance
Aging
Other accounts receivable Other accounts receivable
Within 1 year 17,302,210.29 218,377.57 1.26
[Of which: within 6 months] 16,168,323.61 161,683.24 1.00
[7-12 months] 1,133,886.68 56,694.33 5.00
1 to 2 years 861,702.24 86,170.22 10.00
2 to 3 years 451,737.27 225,868.64 50.00
Over 3 years 1,393,755.24 1,393,755.24 100.00
Total 20,009,405.04 1,924,171.67 9.62
② Other Account Receivable Classified by Account Nature
Nature Ending carrying amount Beginning carrying amount
Securities investment 40,850,949.35 40,850,949.35
Margin &cash pledge 3,648,377.30 4,749,457.78
Business travel borrowing charges 1,176,663.88 426,435.85
Rent and utilities fee 8,688,782.19 6,786,659.62
Others 6,495,581.67 7,980,284.27
Total 60,860,354.39 60,793,786.87
③ Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
The withdrawn bad debt provision of Reporting Period was of RMB401,034.29.
④ Particulars of the Actual Verification of Other Accounts Receivable during the Reporting Period
There was no actual verification of other accounts receivable during the Reporting Period.
⑤ Top 5 of the Ending Balance of the Other Accounts Receivable Collected According to the Arrears Party
~119~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Name of the Bad debt provision
Relationship Nature Ending balance Aging Proportion (%)
entity Ending balance
Securities
No.1 Non-related party 29,010,449.35 Over 3 years 47.67 29,010,449.35
investment
Securities
No.2 Non-related party 11,840,500.00 Over 3 years 19.46 11,840,500.00
investment
Prepayment of Within 6
No. 3 Non-related party 5,935,503.54 9.75 59,355.04
oil fee
months
Within 6 mon
No. 4 Non-related party Cash deposit 640,288.05 1.05 6,402.88
ths
Prepayment of Within 6 mon
No. 5 Non-related party 500,000.00 0.82 5,000.00
oil fee
ths
Total -- -- 47,926,740.94 -- 78.75 40,921,707.27
7. Inventory
(1) Category of Inventory
Ending balance
Item
Carrying amount Falling price reserves Carrying value
Raw materials& package 158,807,985.16 19,753,803.07 139,054,182.09
Homemade semi-finished products and goods in process 2,107,408,415.79 0.00 2,107,408,415.79
Finished product 173,141,865.95 2,248,377.42 170,893,488.53
Total 2,439,358,266.90 22,002,180.49 2,417,356,086.41
(Continued)
Beginning balance
Item
Carrying amount Falling price reserves Carrying value
Raw materials& package 144,856,930.02 13,808,554.40 131,048,375.62
Homemade semi-finished products and goods in process 1,957,452,112.24 0.00 1,957,452,112.24
Finished product 322,031,842.20 3,225,665.20 318,806,177.00
Total 2,424,340,884.46 17,034,219.60 2,407,306,664.86
(2) Falling Price Reserves of Inventory
~120~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Increase Decrease
Item Beginning balance Ending balance
Withdrawal Others Reverse or write-off Others
Raw materials&
13,808,554.40 5,945,248.67 0.00 0.00 0.00 19,753,803.07
package
Finished product 3,225,665.20 0.00 0.00 977,287.78 0.00 2,248,377.42
Total 17,034,219.60 5,945,248.67 0.00 977,287.78 0.00 22,002,180.49
(3) Withdrawal Provision Basis of the Falling Price of the Inventory and the Reasons of the Reserve or
Write-off
Reaso
Specific basis of withdrawal of falling ns for
Item Reasons for write-off
price reserves of inventory revers
al
Raw materials& The realizable net value was lower The raw material withdrawn impairment disposed in
--
package than the cost Reporting Period
The realizable net value was lower The raw material withdrawn impairment disposed in
Finished product --
than the cost Reporting Period
8. Other Current Assets
Item Ending balance Beginning balance
Pledged reverse repurchase of national debt 10,900,000.00 179,900,000.00
Tax to be deducted 18,638,776.67 74,578,687.20
Total 29,538,776.67 254,478,687.20
9. Current Portion of Non-current Assets
Item Ending balance Beginning balance Notes
Current portion of non-current assets 300,000,000.00 300,000,000.00
Total 300,000,000.00 300,000,000.00
10. Long-term Equity Investment
Investee Beginnin Increase/decrease
~121~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
g balance Additio Reduce
nal d Gains and losses recognized under the Adjustment of other Changes of other
equity method comprehensive income
investm investm equity
ent ent
I.Associa
ted
enterpris
e
Beijing
Guge 4,900,00
0.00 0.00 -164,994.19 0.00 0.00
Trading 0.00
Co., Ltd.
4,900,00
Total 0.00 0.00 -164,994.19 0.00 0.00
0.00
(Continued)
Increase/decrease
Ending balance
Cash bonus or
Investee Ending balance impairment
profits announced Withdrawal of impairment provision Other
to issue provision
I.Associated enterprise
Beijing Guge Trading
0.00 0.00 0.00 4,735,005.81 0.00
Co., Ltd.
Total 0.00 0.00 0.00 4,735,005.81 0.00
11. Investment Property
Item Houses and buildings Land use right Total
I. Original carrying value
1. Beginning balance 8,680,555.75 2,644,592.00 11,325,147.75
2. Increased amount of the period 0.00 0.00 0.00
3. Decreased amount of the period 0.00 0.00 0.00
(1) Transfer to fixed assets 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00
4. Ending balance 8,680,555.75 2,644,592.00 11,325,147.75
~122~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Houses and buildings Land use right Total
II. Accumulative depreciation and accumulative amortization
1. Beginning balance 5,654,245.92 643,673.30 6,297,919.22
2. Increased amount of the period 130,557.96 28,013.28 158,571.24
Withdrawal or amortization 130,557.96 28,013.28 158,571.24
Transfer from fixed assets 0.00 0.00 0.00
3. Decreased amount of the period 0.00 0.00 0.00
(1) Transfer to fixed assets 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00
4. Ending balance 5,784,803.88 671,686.58 6,456,490.46
III. Depreciation reserves
1. Beginning balance 0.00 0.00 0.00
2. Increased amount of the period 0.00 0.00 0.00
Withdrawal 0.00 0.00 0.00
3. Decreased amount of the period 0.00 0.00 0.00
(1) Transfer to fixed assets 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00
IV. Carrying value
1. Ending carrying value 2,895,751.87 1,972,905.42 4,868,657.29
2. Beginning carrying value 3,026,309.83 2,000,918.70 5,027,228.53
12. Fixed Assets
Item Ending balance Beginning balance
Fixed assets 1,684,243,384.48 1,763,988,530.56
Disposal of fixed assets 0.00 0.00
Total 1,684,243,384.48 1,763,988,530.56
(1) List of Fixed Assets
Houses and Machinery Transportation Office equipment
Item Total
buildings equipment equipment and other
~123~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Houses and Machinery Transportation Office equipment
Item Total
buildings equipment equipment and other
I. Original carrying value
1. Beginning balance 2,006,674,799.70 920,022,112.79 58,064,314.20 157,194,996.51 3,141,956,223.20
2. Increased amount of the period 10,628,048.20 6,493,754.22 2,466,474.24 3,765,714.87 23,353,991.53
(1) Purchase 10,547,596.62 5,568,337.36 2,466,474.24 2,209,832.53 20,792,240.75
(2) Transfer of project under
80,451.58 925,416.86 0.00 1,555,882.34 2,561,750.78
construction
(3) Enterprise combination
0.00 0.00 0.00 0.00 0.00
increase
(4) Taking back of rental housing 0.00 0.00 0.00 0.00 0.00
3. Decreased amount of the period 186,521.55 4,308,790.12 1,212,091.63 650,860.17 6,358,263.47
(1) Disposal or scrap 186,521.55 4,308,790.12 1,212,091.63 650,860.17 6,358,263.47
(2) Transfer to investment
0.00 0.00 0.00 0.00 0.00
property
4. Ending balance 2,017,116,326.35 922,207,076.89 59,318,696.81 160,309,851.21 3,158,951,951.26
II. Accumulative depreciation
1. Beginning balance 737,756,223.41 495,710,974.90 49,030,197.42 90,459,858.92 1,372,957,254.65
2. Increased amount of the period 35,879,060.65 49,319,894.61 2,484,811.80 14,393,028.27 102,076,795.33
(1) Withdrawal 35,879,060.65 49,319,894.61 2,484,811.80 14,393,028.27 102,076,795.33
(2) Enterprise combination
0.00 0.00 0.00 0.00 0.00
increase
(3) Taking back of rental housing 0.00 0.00 0.00 0.00 0.00
3. Decreased amount of the period 163,672.92 3,326,105.71 1,166,618.20 633,731.57 5,290,128.40
(1) Disposal or scrap 163,672.92 3,326,105.71 1,166,618.20 633,731.57 5,290,128.40
(2) Transfer to investment
0.00 0.00 0.00 0.00 0.00
property
4. Ending balance 773,471,611.14 541,704,763.80 50,348,391.02 104,219,155.62 1,469,743,921.58
III. Depreciation reserves
1. Beginning balance 3,396,292.79 1,020,057.51 7,047.07 587,040.62 5,010,437.99
2. Increased amount of the period 0.00 0.00 0.00 0.00 0.00
(1) Withdrawal 0.00 0.00 0.00 0.00 0.00
3. Decreased amount of the period 17,252.98 27,856.30 0.00 683.51 45,792.79
(1) Disposal or scrap 17,252.98 27,856.30 0.00 683.51 45,792.79
4. Ending balance 3,379,039.81 992,201.21 7,047.07 586,357.11 4,964,645.20
~124~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Houses and Machinery Transportation Office equipment
Item Total
buildings equipment equipment and other
IV. Carrying value
1. Ending carrying value 1,240,265,675.40 379,510,111.88 8,963,258.72 55,504,338.48 1,684,243,384.48
2. Beginning carrying value 1,265,522,283.50 423,291,080.38 9,027,069.71 66,148,096.97 1,763,988,530.56
(2) List of Temporarily Idle Fixed Assets
Original carrying Accumulative Impairment
Item Carrying value Notes
value depreciation provision
Houses and buildings 10,553,688.29 7,074,810.79 3,379,039.81 99,837.69
Machinery equipment 7,337,349.26 6,287,337.89 992,201.21 57,810.16
Transportation equipment 58,119.66 49,329.00 7,047.07 1,743.59
Office equipment and others 923,873.41 309,813.59 586,357.11 27,702.71
Total 18,873,030.62 13,721,291.27 4,964,645.20 187,094.15
(3) Details of Fixed Assets Failed to Accomplish Certification of Property
Item Carrying value Reason
Houses and building 756,078,944.64 In process
Total 756,078,944.64 --
13. Construction in Progress
Item Ending balance Beginning balance
Construction in process 162,876,312.37 93,320,557.56
Engineering materials 0.00 0.00
Total 162,876,312.37 93,320,557.56
(1) List of Construction in Progress
Ending balance Beginning balance
Item Carrying Depreciation Carrying Carrying Depreciation Carrying
amount reserves value amount reserves value
Digital marketing system 10,191,844. 0.00 10,191,84 0.00 0.00 0.00
60 4.60
SAP ERP system 0.00 0.00 0.00 0.00
~125~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending balance Beginning balance
Item Carrying Depreciation Carrying Carrying Depreciation Carrying
amount reserves value amount reserves value
20,742,671. 20,742,67
34 1.34
Gujing Party Construction Cultural 1,435,187.9 1,435,187
0.00 0.00 0.00 0.00
Center 5 .95
Renovation project of potential safety
1,263,728.5 0.00 1,263,728. 1,263,728.5 0.00 1,263,728
concerns
7 57 7 .57
9,283,726. 5,596,060.0 5,596,060
Equipment installation project 9,283,726.6 0.00 0.00
61 5 .05
1
Desulfurization and denitrification 29,676,888. 29,676,88 28,768,115. 28,768,11
0.00 0.00
project 70 8.70 33 5.33
Technical improvement project of 43,388,604. 43,388,60 17,307,839. 17,307,83
0.00 0.00
automation of brewing 05 4.05 93 9.93
33,804,583. 33,804,58 30,391,615. 30,391,61
Half open wine library in Gujing plant 0.00 0.00
10 3.10 08 5.08
4,431,551.8 4,431,551. 2,597,498.7 2,597,498
Phase I of Suizhou new factory 0.00 0.00
1 81 5 .75
10,092,713. 10,092,71 5,960,511.9 5,960,511
Other projects with small single amount 0.00 0.00
59 3.59 0 .90
162,876,31 162,876,3 93,320,557. 93,320,55
Total 0.00 0.00
2.37 12.37 56 7.56
(2) Changes of Significant Construction in Progress
Amount
that Other
Estimate
Beginning Increase transferre decreased Ending
Name o f item d
balance Amount d to fixed amount of balance
number
assets of the period
the period
~126~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Amount
that Other
Estimate
Beginning Increase transferre decreased Ending
Name o f item d
balance Amount d to fixed amount of balance
number
assets of the period
the period
Digital marketing system 0.00 10,191,844. 0.00 0.00 10,191,844.
3,500.00
60 60
SAP, ERP system 0.00 20,742,671. 0.00 0.00 20,742,671.
4,450.00
34 34
1,435,187.9 2,319,051.7 3,754,239.
Gujing Party Construction Cultural Center 1,160.00 0.00 0.00
5 1 66
Renovation project of potential safety 18,010.7 1,263,728.5 1,263,728.5
0.00 0.00 0.00
concerns 6 7 7
Equipment installation project 10,834.6 5,596,060.0 3,687,666.5 0.00 0.00 9,283,726.6
5 5 6 1
Desulfurization and denitrification project 28,768,115. 908,773.37 0.00 0.00 29,676,888.
7,176.00
33 70
Technical improvement project of automation
27,430.0 17,307,839. 26,080,764. 0.00 0.00 43,388,604.
of brewing
0 93 12 05
Half open wine library in Gujing plant 11,194.1 30,391,615. 3,412,968.0 0.00 0.00 33,804,583.
5 08 2 10
26,000.0 2,597,498.7 1,834,053.0 4,431,551.8
Phase I of Suizhou new factory 0.00 0.00
0 5 6 1
5,960,511.9 9,772,036.5 2,561,750. 3,078,084. 10,092,713.
Other projects with small single amount 7,628.67
0 9 78 12 59
~127~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Amount
that Other
Estimate
Beginning Increase transferre decreased Ending
Name o f item d
balance Amount d to fixed amount of balance
number
assets of the period
the period
117,384. 93,320,557. 78,949,829. 2,561,750. 6,832,323. 162,876,312
Total
23 56 37 78 78 .37
(Continued)
Of
which:
Proportion
the
estimated Accumulati Capitalizati
amount
of the Project ve amount on rate of
of the Capital
Project name project Progre of the interests
capitaliz resources
accumulati ss (%) capitalized of the
ed
ve input interests period (%)
interests
(%)
of the
period
Self-owned
Digital marketing system 29.12 65.00 0.00 0.00 0.00
fund
Self-owned
SAP, ERP system 46.61 60.00 0.00 0.00 0.00
fund
Self-owned
Gujing Party Construction Cultural Center 81.87 100.00 0.00 0.00 0.00
fund
Self-owned
Renovation project of potential safety concerns 82.00 93.00 0.00 0.00 0.00
fund
Self-owned
Equipment installation project 17.02 30.00 0.00 0.00 0.00
fund
Self-owned
Desulfurization and denitrification project 41.67 96.00 0.00 0.00 0.00
fund
Technical improvement project of automation of Self-owned
19.06 19.00 0.00 0.00 0.00
fund
brewing
Self-owned
Half open wine library in Gujing plant 69.06 97.00 0.00 0.00 0.00
fund
Phase I of Suizhou new factory 1.70 5.00 0.00 0.00 0.00 Self-owned
~128~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Of
which:
Proportion
the
estimated Accumulati Capitalizati
amount
of the Project ve amount on rate of
of the Capital
Project name project Progre of the interests
capitaliz resources
accumulati ss (%) capitalized of the
ed
ve input interests period (%)
interests
(%)
of the
period
fund
Self-owned
Other projects with small single amount 82.13 82.00 0.00 0.00 0.00
fund
Total -- -- 0.00 0.00 0.00 --
14. Intangible Assets
Item Land use right Patent right Software Trademark Total
I. Original carrying value
1. Beginning balance 683,451,302.56 45,889,466.19 32,106,185.73 169,116,600.00 930,563,554.48
2. Increased amount of the period 0.00 0.00 3,151,610.32 0.00 3,151,610.32
(1) Purchase 0.00 0.00 188,679.29 0.00 188,679.29
(2) Internal R & D 0.00 0.00 0.00 0.00 0.00
(3) Transfer of construction in progress 0.00 0.00 2,962,931.03 0.00 2,962,931.03
3. Decreased amount of the period 0.00 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00 0.00
4. Ending balance 683,451,302.56 45,889,466.19 35,257,796.05 169,116,600.00 933,715,164.80
II. Accumulated amortization
1. Beginning balance 129,394,359.27 45,769,591.73 12,944,725.23 371,269.15 188,479,945.38
2. Increased amount of the period 7,191,799.45 24,038.88 4,979,696.88 0.00 12,195,535.21
(1) Withdrawal 7,191,799.45 24,038.88 4,979,696.88 0.00 12,195,535.21
3. Decreased amount of the period 0.00 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00 0.00
~129~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Land use right Patent right Software Trademark Total
4. Ending balance 136,586,158.72 45,793,630.61 17,924,422.11 371,269.15 200,675,480.59
III. Depreciation reserves
1. Beginning balance 0.00 0.00 0.00 0.00 0.00
2. Increased amount of the period 0.00 0.00 0.00 0.00 0.00
(1) Withdrawal 0.00 0.00 0.00 0.00 0.00
3. Decreased amount of the period 0.00 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00 0.00
IV. Carrying value
1. Ending carrying value 546,865,143.84 95,835.58 17,333,373.94 168,745,330.85 733,039,684.21
2. Beginning carrying value 554,056,943.29 119,874.46 19,161,460.50 168,745,330.85 742,083,609.10
15. Goodwill
Increase Decrease
Generated from
Item Beginning balance Ending balance
enterprise Other Disposal Other
merger
Yellow Crane Tower Distillery Co., Ltd. 478,283,495.29 0.00 0.00 0.00 0.00 478,283,495.29
Total 478,283,495.29 0.00 0.00 0.00 0.00 478,283,495.29
16. Long-term Unamortized Expenses
Other
Beginning Increased Amortization
Item decreas Ending balance
balance amount amount
e
Experience center 36,671,977.31 36,354.70 4,748,907.28 0.00 31,959,424.73
Pottery jar warehouse 6,244,584.78 0.00 2,203,971.00 0.00 4,040,613.78
Sewage Treatment Project 3,050,000.00 1,640,000.00 461,311.50 0.00 4,228,688.50
Yellow Crane Tower
16,531,666.46 0.00 2,328,900.37 0.00 14,202,766.09
Chateau and museum
Gujing Party Construction
5,909,090.91 3,754,239.66 1,112,331.25 0.00 8,550,999.32
Cultural Center
~130~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Other
Beginning Increased Amortization
Item decreas Ending balance
balance amount amount
e
Other projects with small
15,154,154.00 267,253.54 2,631,299.17 0.00 12,790,108.37
single amount
Total 83,561,473.46 5,697,847.90 13,486,720.57 0.00 75,772,600.79
17. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) List of Deferred Income Tax Assets
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Bad debt provision 43,499,945.40 10,866,529.15 43,023,376.00 10,749,392.31
Impairment of inventories 21,985,965.74 5,461,318.38 17,018,004.85 4,219,328.16
Impairment provision of the
4,964,645.20 1,241,161.31 5,010,437.99 1,252,609.50
fixed assets
Deferred income 74,300,122.46 18,308,505.09 76,636,500.55 18,877,272.61
Accrued expenses and discount 437,378,318.85 109,344,579.72 153,988,413.40 38,497,103.35
Deductible losses 1,768,111.99 410,365.65 111,851.71 5,592.58
Unrealized internal profits 17,201,753.99 4,285,249.29 16,788,054.95 4,181,824.54
Change of fair value of trading
0.00 0.00 117,161.92 29,290.48
financial assets
Deducted payroll payable
carryingforward to the next 0.00 0.00 35,071,030.14 8,767,757.53
period
Total 601,098,863.63 149,917,708.59 347,764,831.51 86,580,171.06
(2) Lists of Deferred Income Tax Liabilities
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Change of fair value of trading
17,596,291.10 4,399,072.78 0.00 0.00
financial assets
~131~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Change in fair value of
6,393,107.46 1,598,276.87
available-for-sale financial assets
accelerated depreciation of
12,591,595.58 3,147,898.89 12,921,842.60 3,230,460.65
difference of fixed assets
Asset evaluation increment of
business combination not under the 387,776,186.92 96,944,046.73 391,743,110.36 97,935,777.59
same control
Total 417,964,073.60 104,491,018.40 411,058,060.42 102,764,515.11
(3) List of Unrecognized Deferred Income Tax Assets
Item Ending balance Beginning balance
Deductible temporary difference 16,214.75 16,214.75
Deductible losses 5,432,144.69 5,089,008.12
Total 5,448,359.44 5,105,222.87
18. Other Non-current Assets
Item Ending balance Beginning balance
Certificate of deposit 200,000,000.00 0.00
Prepayment of equipment and house 16,544,407.51
574,026.00
purchase
Total 200,574,026.00 16,544,407.51
19. Notes Payable
Category Ending balance Beginning balance
Bank acceptance bill 428,927,100.00 320,554,500.00
Trade acceptance 47,881,240.53 28,648,913.72
Total 476,808,340.53 349,203,413.72
20. Accounts Payable
(1) List of Accounts Payable
Item Ending balance Beginning balance
Payment for materials 205,184,631.16 277,765,943.47
Prepayment for projects and equipment 67,828,201.29 111,498,555.89
Others 64,520,149.31 95,688,099.23
Total 337,532,981.76 484,952,598.59
~132~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
(2) Significant Accounts Payable Aging over One Year
Item Ending balance Unpaid/ Un-carry-over reason
A Company 1,115,215.57 Final payment of the project
B Company 7,544,026.71 Final payment of the project
C Company 3,744,927.40 Final payment of the project
D Company 1,300,000.00 Final payment of the project
E Company 3,445,131.03 Final payment of the project
Total 17,149,300.71 --
21. Advance from Customers
Item Ending balance Beginning balance
Loans 517,109,674.60 1,149,143,310.48
Total 517,109,674.60 1,149,143,310.48
22. Payroll Payable
(1) List of Payroll Payable
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 456,935,872.94 787,677,386.74 934,115,923.79 310,497,335.89
II. Post-employment benefit-defined
363,603.49 69,442,152.68 69,456,442.83 349,313.34
contribution plans
III. Termination benefits 0.00 0.00 0.00 0.00
IV. Other benefits due within one
0.00 0.00 0.00 0.00
year
Total 457,299,476.43 857,119,539.42 1,003,572,366.62 310,846,649.23
(2) List of Short-term Salary
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus, allowance, subsidy 371,643,470.87 709,042,606.80 850,536,199.87 230,149,877.80
2. Employee welfare 6,468,163.00 9,972,320.26 16,440,483.26 0.00
3. Social insurance 233,210.91 27,163,747.13 27,393,663.48 3,294.56
Of which: Medical insurance premiums 226,816.90 24,127,024.75 24,350,547.09 3,294.56
Work-related injury insurance 1,487.67 949,793.30 951,280.97 0.00
~133~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Beginning balance Increase Decrease Ending balance
Maternity insurance 4,906.34 2,086,929.08 2,091,835.42 0.00
4. Housing fund 2,867,327.46 30,502,119.49 29,425,126.35 3,944,320.60
5.Labor union budget and employee
75,723,700.70 10,996,593.06 10,320,450.83 76,399,842.93
education budget
6. Short-term paid absence 0.00 0.00 0.00 0.00
7. Short-term profits sharing plan 0.00 0.00 0.00 0.00
Total 456,935,872.94 787,677,386.74 934,115,923.79 310,497,335.89
(3) List of Drawing Scheme
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 347,894.88 66,950,290.72 66,948,872.26 349,313.34
2. Unemployment insurance 15,708.61 2,491,861.96 2,507,570.57 0.00
Total 363,603.49 69,442,152.68 69,456,442.83 349,313.34
23. Taxes Payable
Item Ending balance Beginning balance
VAT 89,384,986.50 162,028,367.23
Consumption tax 113,591,123.33 99,133,181.43
Corporate income tax 139,532,581.81 75,107,410.70
Personal income tax 1,564,596.45 1,307,281.11
Urban maintenance and construction tax 10,863,973.17 13,142,342.60
Stamp tax 746,938.60 549,270.06
Education Surcharge 10,275,939.43 12,301,477.16
Others 2,783,142.76 9,424,293.89
Total 368,743,282.05 372,993,624.18
24. Other Accounts Payable
Nature Ending balance Beginning balance
Interest payable 0.00 0.00
Dividend payable 0.00 0.00
Other accounts payable 1,337,734,331.13 1,192,020,147.82
~134~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Nature Ending balance Beginning balance
Total 1,337,734,331.13 1,192,020,147.82
(1) Other Accounts Payable
① Listed by Account Nature
Nature Ending balance Beginning balance
Margin and cash pledge 1,211,205,092.51 1,064,059,562.95
Business travel charges advance 72,197.21 145,447.82
Quality guarantee deposit 33,390,136.01 14,693,150.14
Housing deduction 3,944,320.60 2,867,327.46
Unsettled sales discount 18,404,995.42 30,212,626.88
Others 70,717,589.38 80,042,032.57
Total 1,337,734,331.13 1,192,020,147.82
② Significant Accounts Payable Aging over One Year
There is no significant account payable aging over one year at the end of period.
25. Other Current Liabilities
Item Ending balance Beginning balance
Accrued expenses 443,198,383.65 295,164,745.44
Total 443,198,383.65 295,164,745.44
26. Deferred Revenue
Item Beginning balance Increase Decrease Ending balance Formed reason
Government subsidies 76,636,500.55 113,800.00 2,450,178.09 74,300,122.46 Related to assets
Total 76,636,500.55 113,800.00 2,450,178.09 74,300,122.46 --
Of which, items involved in government subsidies:
Recorded
Newly-increased Recorded Related to
Beginning into Other Ending
Item amount of into other assets/related
balance non-operating changes balance
subsidy income to income
revenue
Technical reform of wine Related to
255,208.43 0.00 0.00 31,249.98 0.00 223,958.45
the assets
production system
Instruments subsidies 992,250.00 0.00 0.00 110,250.00 0.00 882,000.00 Related to
~135~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Recorded
Newly-increased Recorded Related to
Beginning into Other Ending
Item amount of into other assets/related
balance non-operating changes balance
subsidy income to income
revenue
the assets
Intelligent solid brewing Related to
151,041.57 0.00 0.00 15,625.02 0.00 135,416.55
the assets
technology innovation project
Anhui service industry Related to
1,087,805.00 0.00 0.00 146,341.44 0.00 941,463.56
the assets
development guide fund
Anhui innovative province
construction independent Related to
2,678,665.00 0.00 0.00 365,272.50 0.00 2,313,392.50
the assets
innovation ability construction
subsidy
Energy-saving and reform
Related to
project of coal-fired industry 12,750.00 0.00 0.00 12,750.00 0.00 0.00
the assets
boiler and glass furnace
Bozhou city logistics center Related to
60,000.00 0.00 0.00 30,000.00 0.00 30,000.00
the assets
project
Related to
Equipment subsidy 1,252,062.37 0.00 0.00 101,399.82 0.00 1,150,662.55
the assets
Financial subsidy for technology Related to
415,930.90 0.00 0.00 267,110.76 0.00 148,820.14
the assets
innovation
Special fund to enterprise Related to
52,500.00 0.00 0.00 15,000.00 0.00 37,500.00
the assets
development
Related to
Iot traceability system project 2,970,000.00 0.00 0.00 556,875.00 0.00 2,413,125.00
assets
Infrastructure subsidies of Related to
35,338,000.00 0.00 0.00 0.00 0.00 35,338,000.00
assets
Suizhou new factory
Motor and boiler energy-saving Related to
412,500.20 0.00 0.00 68,749.98 0.00 343,750.22
assets
reform project
Automated storage hook and
Related to
product quality online 359,375.00 0.00 0.00 46,875.00 0.00 312,500.00
assets
monitoring
~136~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Recorded
Newly-increased Recorded Related to
Beginning into Other Ending
Item amount of into other assets/related
balance non-operating changes balance
subsidy income to income
revenue
Research fund on smart Related to
886,200.00 113,800.00 0.00 0.00 0.00 1,000,000.00
assets
Koji-making technology
Renovation of Gujing Zhangji Related to
882,708.39 0.00 0.00 23,749.98 0.00 858,958.41
assets
Spirit Room
Food security enhancement Related to
827,586.25 0.00 0.00 68,965.50 0.00 758,620.75
assets
project
Key technical cooperation on
Related to
isotopic authenticity of 600,000.00 0.00 0.00 0.00 0.00 600,000.00
assets
important food
Comprehensive subsidies for air Related to
2,608,083.33 0.00 0.00 131,500.02 0.00 2,476,583.31
assets
pollution prevention
Fund of strategic emerging
Related to
industries cluster development 1,020,800.00 0.00 0.00 111,360.00 0.00 909,440.00
assets
foundation
Related to
Land refund 23,113,034.11 0.00 0.00 275,103.09 0.00 22,837,931.02
assets
Special fund to power demand Related to
660,000.00 0.00 0.00 72,000.00 0.00 588,000.00
assets
side management
Total 76,636,500.55 113,800.00 0.00 2,450,178.09 0.00 74,300,122.46 --
27. Share Capital
Increase/decrease in Reporting Period (+/-)
Item Beginning balance Newly Bonus Bonus issue Ending balance
Others Subtotal
issue share shares from profit
The sum of shares 503,600,000.00 0.00 0.00 0.00 0.00 0.00 503,600,000.00
28. Capital Reserves
Item Beginning balance Increase Decrease Ending balance
Capital premium 1,262,552,456.05 0.00 0.00 1,262,552,456.05
Other capital reserves 32,853,136.20 0.00 0.00 32,853,136.20
~137~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Beginning balance Increase Decrease Ending balance
Total 1,295,405,592.25 0.00 0.00 1,295,405,592.25
29. Surplus Reserves
Item Beginning balance Increase Decrease Ending balance
Statutory surplus reserves 256,902,260.27 0.00 0.00 256,902,260.27
Total 256,902,260.27 0.00 0.00 256,902,260.27
Notes: Based on the regulations of the Corporation Law and Article of Association, the Company should
withdraw 10% of the statutory surplus reserves according to the net profits. If the accumulated amount of the
statutory surplus reserves exceeded the 50% of the registered capital, the Company could no more withdraw.
30. Retained Profits
Same period of last
Item Reporting Period
year
Beginning balance of retained profits before adjustments 5,541,281,341.47 4,349,649,698.42
Total beginning balance of retained profits before adjustments (Increase+, decrease-) 4,794,830.59 0.00
Beginning balance of retained profits after adjustments 5,546,076,172.06 4,349,649,698.42
Add: Net profit attributable to owners of the Company 1,248,316,314.01 1,695,231,643.05
Less: Withdrawal of statutory surplus reserves 0.00 0.00
Withdrawal of discretional surplus reserves 0.00 0.00
Withdrawal of generic risk reserve 0.00 0.00
Dividend of common stock payable 755,400,000.00 503,600,000.00
Dividend of common stock transfer into share capital 0.00 0.00
Ending retained profits 6,038,992,486.07 5,541,281,341.47
31. Operating Revenues and Costs
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 5,958,624,293.86 1,380,565,871.04 4,761,127,411.98 1,030,168,914.20
Other operations 29,488,705.23 13,590,863.51 21,956,483.35 12,506,554.04
Total 5,988,112,999.09 1,394,156,734.55 4,783,083,895.33 1,042,675,468.24
32. Business Taxes and Surcharges
Item Reporting Period Same period of last year
~138~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Reporting Period Same period of last year
Consumption tax 711,806,689.93 563,325,650.24
Urban maintenance, construction tax and educational surcharge 138,007,221.23 142,213,013.80
Urban land use tax 3,447,726.79 6,015,282.37
Real estate tax 4,547,732.36 8,375,687.33
Stamp duty 5,043,756.63 3,804,040.42
Others 6,674,635.10 5,733,499.37
Total 869,527,762.04 729,467,173.53
Note: The measurement standards of business tax and surcharges see Notes V. Taxation.
33. Sales Expenses
Item Reporting Period Same period of last year
Employee’s remuneration
197,359,561.67 136,422,226.05
Business travel charges
60,001,666.01 46,668,654.04
Advertising expense
442,193,538.62 340,669,501.89
Transport fees
27,580,054.90 26,869,004.77
Comprehensive promotion fees 787,961,795.81 815,172,181.29
Labor cost
281,570,342.23 194,269,250.64
Other sales expenses
43,822,480.46 37,229,496.49
Total 1,840,489,439.70 1,597,300,315.17
34. Administration Expenses
Item Reporting Period Same period of last year
Employee’s remuneration
180,945,738.54 156,429,758.02
Office expenses
17,415,335.29 15,386,308.57
Repair charge
17,708,807.57 30,444,032.33
Depreciation charge
30,873,944.56 29,064,059.09
Amortization of intangible assets
9,656,033.10 8,489,059.99
Sewage charge
9,730,796.01 6,066,176.72
Business travel charges
1,375,252.69 1,093,709.89
~139~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Reporting Period Same period of last year
Water & electricity fees
6,162,660.18 5,668,025.21
Others
28,176,889.19 19,832,073.54
Total 302,045,457.13 272,473,203.36
35. R&D Expenses
Item Reporting Period Same period of last year
Employee’s remuneration 8,702,736.52 4,225,844.44
Direct input expense 1,225,388.53 665,769.98
Depreciation expense 1,633,752.38 1,071,724.10
Other related expense 3,102,360.24 2,063,795.84
Total 14,664,237.67 8,027,134.36
36. Financial Expenses
Item Reporting Period Same period of last year
Interest expenses 14,173,972.09 0.00
Less: Interest income 20,466,649.02 21,644,883.48
Exchange gains and losses 1,577,281.36 608,331.71
Others 412,770.27 751,645.22
Total -4,302,625.30 -20,284,906.55
Note: The interest expenses in the Reporting period are the discount interest of bank acceptance bills.
37. Asset Impairment Loss
Item Reporting Period Same period of last year
Bad debt loss -476,569.40 105,638.14
Inventory falling price loss -5,945,248.67 -1,277,549.50
Total -6,421,818.07 -1,171,911.36
38. Gain on Changes in Fair Value
Sources Reporting Period Same period of last year
Trading financial assets 11,320,345.56 236,707.77
Of which: gains on changes in fair value of derivative financial assets 0.00 0.00
Total 11,320,345.56 236,707.77
~140~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
39. Investment Income
Item Reporting Period Same period of last year
Long-term equity investment income
-164,994.19 0.00
accounted by equity method
Investment income from disposal of
long-term equity investment
Investment income from holding of trading
financial assets
Investment income from disposal of trading
0.00 1,271,471.00
financial assets
Dividend income from holding of other equity
instrument investment
Investment income from holding of
0.00 0.00
held-to-maturity investment
Investment income from holding of
0.00 50,743,630.89
available-for-dale financial assets
Investment income from disposal of
0.00 10,999,123.54
available-for-sale financial assets
Investment income from disposal of
held-to-maturity investment
Income from remeasurement of residual stock
rights at fair value after losing control power
Interest income from holding of creditors’
investment
Interest income from holding of other
creditors’ investment
Interest income from disposal of other
creditors’ investment
Other investment income 77,512,041.72 5,760,794.52
Total 77,347,047.53 68,775,019.95
40. Asset Disposal Income
Same period of
Item Reporting Period Amount recorded in the current non-recurring profit or loss
last year
Fixed assets disposal income 119,488.56 154,437.81 119,488.56
Total 119,488.56 154,437.81 119,488.56
~141~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
41. Other Income
Same
Reporting Amount recorded in the current non-recurring
Item period of
Period
last year profit or loss
1,426,552.
Tax rebates 15,816,253.89 15,816,253.89
29
2,566,383.
Amortization of differed income 2,450,178.09 2,450,178.09
76
Government subsidy related to routine business 494,100.0
12,517,486.70 12,517,486.70
activities 0
4,487,036.
Total 30,783,918.68 30,783,918.68
05
42. Non-operating Income
Amount recorded in the
Same period of last
Item Reporting Period current non-recurring
year
profit or loss
Gains from damage or scrap of non-current assets 146,982.76 728,876.14 146,982.76
Government subsidy unrelated to routine business activities 20,000.00 221,000.00 20,000.00
Income from penalty and compensations 9,154,446.13 7,587,991.61 9,154,446.13
Sales of scrap 1,527,143.43 5,808,369.37 1,527,143.43
Other 302,191.21 412,560.64 302,191.21
Total 11,150,763.53 14,758,797.76 11,150,763.53
Government subsidies recorded into current profit or loss:
Reporting Period Same period of last year
Related to the
Recorded into Recorded Offs Recorded into Recorded Offs
Item assets/related to
non-operating into other et non-operating into other et
income
income income costs income income costs
Other rewards 20,000.00 0.00 0.00 21,000.00 0.00 0.00 Related to income
Reward of taxpayer in
Xiannning high-tech 0.00 0.00 0.00 100,000.00 0.00 0.00 Related to income
zone
Fund for postdoctoral 0.00 0.00 0.00 100,000.00 0.00 0.00 Related to income
~142~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Reporting Period Same period of last year
Related to the
Recorded into Recorded Offs Recorded into Recorded Offs
Item assets/related to
non-operating into other et non-operating into other et
income
income income costs income income costs
innovation practice
base
Total 20,000.00 0.00 0.00 221,000.00 0.00 0.00 --
43. Non-operating Expense
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit
or loss
Losses on damage or scrap of non-current assets 576,926.25 4,303,286.91 576,926.25
Other 1,160,684.82 134,726.13 1,160,684.82
Total 1,737,611.07 4,438,013.04 1,737,611.07
44. Income Tax Expense
(1) List of Income Tax Expense
Item Reporting Period Same period of last year
Current income tax expense 479,158,161.69 452,080,424.72
Deferred income tax expense -60,012,757.38 -131,290,509.48
Total 419,145,404.31 320,789,915.24
45. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Item Reporting Period Same period of last year
Margin 103,959,881.28 52,007,634.47
Government subsidies 11,786,600.00 615,100.00
Interest income 20,466,649.02 21,644,883.48
Recovery of restricted monetary capital 100,200,000.00 460,000,000.00
Other 40,318,774.38 43,953,555.36
Total 276,731,904.68 578,221,173.31
(2) Cash Used in Other Operating Activities
~143~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Reporting Period Same period of last year
Cash paid in selling expense and administrative expense 657,188,029.24 526,682,839.55
Pledged fixed term deposits used to issue notes payable or cash deposit of notes 13,960,226.78 45,000,000.00
Structural deposit not withdrawable in advance 0.00 0.00
Other 25,350,534.61 49,502,450.93
Total 696,498,790.63 621,185,290.48
46. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Same period of last
Supplemental information Reporting Period
year
1. Reconciliation of net profit to net cash flows generated from operating
activities
Net profit 1,274,948,723.71 915,437,666.92
Add: Provision for impairment of assets 6,421,818.07 1,171,911.36
Depreciation of fixed assets, oil-gas assets, and productive living assets 102,076,795.33 96,520,768.95
Amortization of investment property 158,571.24 168,913.08
Amortization of intangible assets 12,195,535.21 8,489,059.99
Amortization of long-term prepaid expenses 13,486,720.57 10,844,242.64
Losses on disposal of fixed assets, intangible assets and other long-lived assets
154,437.81
(gains: negative) -119,488.56
Losses on scrap of fixed assets (gains: negative) 429,943.49 3,574,410.77
Losses from variation of fair value (gains: negative) -11,320,345.56 -236,707.77
Finance costs (gains: negative) 14,173,972.09 608,331.71
Investment loss (gains: negative) -77,347,047.53 -68,775,019.95
Decrease in deferred income tax assets (gains: negative) -63,337,537.53 -131,582,903.72
Increase in deferred income tax liabilities
292,394.23
(“-” means decrease) 3,324,780.16
Decrease in inventory (gains: negative) -14,040,094.66 -77,733,707.57
Decrease in accounts receivable generated from operating activities (gains:
-1,205,967,657.32
negative) 146,484,134.95
Increase in accounts payable used in operating activities (decrease: negative) 708,414,366.71
-463,552,554.06
~144~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Same period of last
Supplemental information Reporting Period
year
Amortization of deferred income -2,450,178.09 2,566,383.76
Certificate of deposit 100,200,000.00 405,000,000.00
Net cash generated from/used in operating activities 1,041,733,748.83 668,946,891.61
2. Significant investing and financing activities without involvement of cash
receipts and payments
Conversion of debt into capital 0.00 0.00
Convertible corporate bonds due within one year 0.00 0.00
Fixed assets under financing lease 0.00 0.00
3. Net increase/decrease of cash and cash equivalents:
Ending balance of cash 2,395,374,286.79 922,785,957.41
Less: Beginning balance of cash 835,560,865.12 1,024,088,626.40
Add: Ending balance of cash equivalents 0.00 0.00
Less: Beginning balance of cash equivalents 0.00 0.00
Net increase in cash and cash equivalents 1,559,813,421.67 -101,302,668.99
(2) Cash and Cash Equivalent
Item Ending balance Beginning balance
I. Cash 2,395,374,286.79 835,560,865.12
Of which: cash on hand 374,122.81 353,429.67
Bank deposits on demand 2,394,869,696.55 835,175,643.46
Other monetary funds on demand 130,467.43 31,791.99
II. Cash and cash equivalents 0.00 0.00
Of which: Bond investment due within three months 0.00 0.00
III. Ending balance of cash and cash equivalents 2,395,374,286.79 835,560,865.12
(3) Non-cash Negotiability Amount of Trade Bills
Item Reporting Period
Negotiability amount of trade bills 639,142,983.76
Of which: Payment for goods 630,885,014.82
~145~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Reporting Period
Purchase of fixed assets and other long-term assets 8,257,968.94
47. Assets with Restricted Ownership or Use Right
Item Ending carrying value Restriction reason
Structural deposit not withdrawable in
Other monetary capital 770,000,000.00
advance, due within 3 months
Notes receivable 159,686,231.66 Pledge for issuing bank acceptance bill
Other monetary capital 13,960,226.78 Bill deposit
Total 943,646,458.44 --
48. Government Subsidy
(1) Information of Government Subsidy
Amount recorded
into
Category Amount Presented item
current profit or
loss
15,816,253.8
Tax rebates Other income 15,816,253.89
9
Project fund of 2018 manufacturing industry province 9,180,000.00 Other income 9,180,000.00
Reward of demonstration enterprise in national intellectual property 1,200,000.00 Other income 1,200,000.00
Subsidy for stabilizing posts of unemployment insurance fund 2,000.00 Other income 2,000.00
Subsidy of Bureau of Science and Technology of Xianning 50,000.00 Other income 50,000.00
Subsidy for special workstation of Bureau of Science and Technology
200,000.00 Other income 200,000.00
of Wuhan
Fund for industrial enterprise technology project in Xianning high-tech
200,000.00 Other income 200,000.00
zone
Reward of Bureau of Science and Technology of Bozhou 50,000.00 Other income 50,000.00
Fund for robot project of Economy and Information Technology
300,000.00 Other income 300,000.00
Committee
Research fund on smart Koji-making technology 113,800.00 Deferred income 0.00
Other rewards 470,800.00 Other income 470,800.00
Additional deduction of VAT 864,686.70 Other income 864,686.70
Other rewards 20,000.00 Non-operating 20,000.00
~146~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Amount recorded
into
Category Amount Presented item
current profit or
loss
income
Total 28,467,540.5 -- 28,353,740.59
9
(2) The Return of Government Subsidy in the Reporting Period
There is no return of government subsidy in the Reporting Period.
VII. Changes of Consolidation Scope
The subsidiary, Hubei Yellow Crane Tower Beverage Co., Ltd. is newly established in the Reporting Period.
VIII. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main Holding percentage
Registration Nature of
Name operating (%) Way of gaining
place business
place Directly Indirectly
Bozhou, Business
Bozhou Gujing Sales Co., Ltd. Bozhou, Anhui 100.00 Investment
Anhui trading
Bozhou,
Anhui Longrui Glass Co., Ltd. Bozhou, Anhui Production 100.00 Investment
Anhui
Bozhou Gujing Waste Reclamation Bozhou,
Bozhou, Anhui Waste cycled 100.00 Investment
Co., Ltd. Anhui
Anhui Jinyunlai Culture & Media Co.,
Hefei Anhui Hefei Anhui Ads marketing 100.00 Investment
Ltd.
Anhui Swisse Will Science & Bozhou, Technology
Bozhou, Anhui 100.00 Investment
Technology Co., Ltd. Anhui research
Bozhou,
Anhui Subway Cordial Wine Co., Ltd. Bozhou, Anhui Production 100.00 Investment
Anhui
Shanghai Gujing Jinhao Hotel Hotel Business combination
Shanghai Shanghai 100.00
Management Co., Ltd. management
under the same control
Bozhou, Business combination
Bozhou Gujing Hotel Co., Ltd. Bozhou, Anhui Hotel operating 100.00
Anhui
under the same control
~147~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Main Holding percentage
Registration Nature of
Name operating (%) Way of gaining
place business
place Directly Indirectly
Anhui Yuanqing Environmental Bozhou, Sewage
Bozhou, Anhui 100.00 Investment
Co. , Ltd. Anhui Treatment
Anhui Gujing Cloud E-commerce Co.,
Hefei, Anhui Hefei, Anhui E-commerce 100.00 Investment
Ltd.
Anhui Zhenrui Construction Bozhou, Engineering
Bozhou, Anhui 100.00 Investment
Engineering Co., Ltd. Anhui construction
Anhui RunAnXinKe Testing Bozhou,
Bozhou, Anhui Food detection 100.00 Investment
Anhui
Technology Co., Ltd
Business combination
Wuhan Pride Yellow Crane Tower Wuhan,
Wuhan, Hubei Production 51.00 not under the same
Distillery Co., Ltd. Hubei
control
Business combination
Pride Yellow Crane Tower Distillery Xianning, Xianning,
Production 51.00 not under the same
(Xianning) Co., Ltd. Hubei Hubei
control
Business combination
Hubei Yellow Crane Tower Distillery Suizhou,
Suizhou, Hubei Production 51.00 not under the same
Co., Ltd. Hubei
control
Business combination
Wuhan, Commercial
Tian Long Jin Di (Wuhan) Co., Ltd. Wuhan, Hubei 51.00 not under the same
Hubei trade
control
Business combination
Xianning, Xianning, Commercial
Xianning Junhe Sales Co., Ltd. 51.00 not under the same
Hubei Hubei trade
control
Business combination
Wuhan,
Hubei Junhe Advertising Co., Ltd. Wuhan, Hubei Ads marketing 51.00 not under the same
Hubei
control
Wuhan Junya Shibo Technology Co., Wuhan, Technology
Wuhan, Hubei 51.00 Investment
Ltd. Hubei development
Wuhan Junya Sales Co., Ltd. Wuhan, Wuhan, Hubei Commercial 51.00 Investment
~148~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Main Holding percentage
Registration Nature of
Name operating (%) Way of gaining
place business
place Directly Indirectly
Hubei trade
Suizhou, Business
Suizhou Junhe Trading Co., Ltd. Suizhou, Hubei 51.00 Investment
Hubei trading
Hubei Yellow Crane Tower Beverage Xianning, Xianning, Business
51.00 Investment
Co., Ltd. Hubei Hubei trading
Note: Hubei Yellow Crane Tower Beverage Co., Ltd. is set up in March 2019.
The Composition of the Company
(2) Significant Not Wholly-owned Subsidiary
Shareholding The profit or loss Declaring dividends
Ending balance of
proportion of attributable to distributed to
Name non-controlling
non-controlling non-controlling non-controlling
interests
interests interests interests
Wuhan Pride Yellow Crane Tower
49.00 26,632,409.70 0.00 454,398,502.52
Distillery Co., Ltd.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Ending balance
Name Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liability
Wuhan Pride Yellow
Crane Tower Distillery 647,335,956.02 713,870,487.69 1,361,206,443.71 300,618,523.68 133,244,037.34 433,862,561.02
Co., Ltd
(Continued 1)
Beginning balance
Name Current
Current assets Non-current assets Total assets Non-current liability Total liabilities
liabilities
Wuhan Pride
Yellow Crane
587,458,925.80 731,191,284.72 1,318,650,210.52 311,342,786.19 134,315,398.16 445,658,184.35
Tower Distillery
Co., Ltd
(Continued 2)
~149~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Reporting Period Same period of last year
Cash flows Cash flows
Total Total
Name Operating from Operating from
Net profit comprehensiv Net profit comprehensiv
revenue operating revenue operating
e income e income
activities activities
Wuhan
Pride
Yellow
Crane 457,947,025.0 54,351,856.5 39,866,055.4 429,495,365.2 46,956,428.7 73,102,943.9
54,351,856.52 46,956,428.75
Tower 3 2 2 1 5 1
Distiller
y Co.,
Ltd.
IX. The Risk Related to Financial Instruments
The main financial instruments of the Company are equity investment, financial product, trust investment,
accounts receivable and accounts payable, etc, the specific explanation of each financial instrument are in
relevant item of Note VI. Risk related to these financial instruments and the risk management policies the
Company adopted to reduce the risk is as follows: the management of the Company monitors and manages
the risk exposure to ensure the aforesaid risk within the limit scope of control.
(I) Risk Management Objectives and Policies
The goals of the Company is to maintain a proper balance between the risk and the income, reduce the
negative influence of risk to the operation performance of the Company to a minimum, and maximize profits
of shareholders and other equity investors, basing on the risk management goal, the Company basis policies
are to recognize and analyze each risk the Company faced, establish proper risk bottom line and conduct risk
management, timely and reliably supervise each risk, control the risks within the limit scope .
1. Market Risk
(1) Foreign Exchange Risk
Foreign exchange risk is referred to the risk incurred due to loss of changes in exchange rate. Foreign
exchange risk is referred to the risk of loss from the change of exchange rate. The main operation of the
Company is within the territory of China, mainly settled by RMB, only small amount of export business and
the influence of the proportion in the total income is rather small; the exchange rate risk is very little.
(2) Interest Rate Risk- Cash Flow Change Risk
The operation capital of the Company is sufficient, there is no external borrowing in the Company; the
interest rate risk is very little.
~150~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
(3) Other Price Risk
What the Company held are classified as available-for-sale financial assets and trading financial assets
measured at fair value on balance sheet date. Thus, the Company bares the risk change of securities market.
The Company adopts variety of equity group to reduce the price risk in equity security investment.
2. Credit Risk
On 30 June 2019, the largest credit risk exposure what may lead to the financial losses was the other party of
the contract failed to fulfill the obligations and causes loss of the Company’s financial assets and financial
guarantee, which including: carrying value of financial assets recognized in consolidated balance sheet; as
for the financial instruments measured at fair value, the carrying value reflects its risk exposure, but not the
largest one, the largest risk exposure will change when the future fair value changes.
The Company only trade with the third party authorized with good credit and large scale. In line with the
policies of the Company and the items of sale contracts, the Company gives priority to first payment
shipment, only small amount of credit transactions and examines and verifies the credit of the client who
trading with by credit way.
The Company’s working capital was in bank with higher credit rating, so credit risk of working capital was
low.
3. Liquidity Risk
When managing liquidity risk, the Company maintained the management’s believe that supervising the
sufficient cash and cash equivalents to meet the operating demand of the Company and reduce the influence
of the fluctuation of cash flow.
X. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Ending fair value
Fair value Fair value Fair value
Item
measurement items measurement measurement Total
at level 1 items at level 2 items at level 3
I. Consistent fair value measurement
(I) Trading financial assets 1,573,596,291.10 1,573,596,291.10
1. Financial assets at fair value through profit
or loss
(1) Debt instrument investment 1,356,000,000.00 1,356,000,000.00
(2) Equity instrument investment 217,596,291.10 217,596,291.10
(3) Derivative financial assets
Total assets consistently measured at fair 1,573,596,291.10 1,573,596,291.10
~151~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending fair value
Fair value Fair value Fair value
Item
measurement items measurement measurement Total
at level 1 items at level 2 items at level 3
value
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at
Level 1
The consistent fair value measurement items were the share public trade on Shanghai Stock Exchange or
Shenzhen Stock Exchange, the market price recognition basis was the closing price of the share on balance
sheet date. When the shares held were in the restricted period, the price shall be determined according to the
relevant valuation methods mentioned in SFC [2007] No. 21.
XI. Connected Party and Connected Transaction
1. Information Related to the Company as the Parent of the Company
Proportion of
Proportion of voting
share held by
rights owned by the
Registration the Company as
Name Nature of business Registered capital Company as the
place the parent
parent against the
against the
Company (%)
Company (%)
Beverage,
Construction materials,
Anhui Gujing Group Co., Ltd. Anhui and plastic 1,000,000,000.00 53.89 53.89
productions
manufacture
Notes: The finial controller of the Company was State-owned Assets Supervision Commission of People’s
Government of Bozhou, Anhui
2. Subsidiaries of the Company
Refer to Note VIII-1. Equity in Subsidiaries.
3. Information on Other Connected Parties
Name Relationship
Anhui Ruifuxiang Food Co., Ltd Affiliated enterprise of controlling shareholder and actual controller
Anhui Ruijing Restaurant Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Haochidian Catering Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Shanghai Ruiyao Hotel Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Shanghai Beihai Restaurant Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
~152~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Name Relationship
Anhui Ruijing Trade Travel (Group) Co., Ltd Affiliated enterprise of controlling shareholder and actual controller
Bozhou Hotel Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Gujing Real Estates Group Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
East Ruijing Enterprise Investment Development Co.,
Affiliated enterprise of controlling shareholder and actual controller
Ltd
Anhui Hengxin Pawn Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Bozhou Ruineng Thermoelectricity Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Holiday Inn Hefei Affiliated enterprise of controlling shareholder and actual controller
Bozhou Rufuxiang High-protein Feed Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Gujing Hotel Development Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Ruixin Pawn Co., Ltd Affiliated enterprise of controlling shareholder and actual controller
Anhui Zhongxin Financial Leasing Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Huixin Finance Investment Group Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Hefei Longxin Financial Management Consulting Co.,
Affiliated enterprise of controlling shareholder and actual controller
Ltd.
Bozhou Anxin Microcredit Co., Ltd Affiliated enterprise of controlling shareholder and actual controller
Large Central Plain Wine Valley Culture Tourism Affiliated enterprise of controlling shareholder and actual controller
Development Co., Ltd.
Anhui Xinyuan Government Landscape Engineering Co., Affiliated enterprise of controlling shareholder and actual controller
Ltd.
Anhui Lvyuan Ecological Agriculture Development Co.,
Affiliated enterprise of controlling shareholder and actual controller
Ltd.
Bozhou Gujing Hotel Co., Ltd Affiliated enterprise of controlling shareholder and actual controller
Anhui Youxin Financing Guarantee Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Aoxin Real Estate Development Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Lixin E-Commerce Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Xinxin Property Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Bozhou Huisheng Building Catering Company Affiliated enterprise of controlling shareholder and actual controller
Bozhou Gujing Junlai Hotel Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
~153~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Name Relationship
Bozhou Gujing Real Estates Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Bozhou Gujing Real Estates Development Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Gujing International Travel Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Jinzhai Gujing Real Estate Development Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Gujing Health Industry Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Lejiu Home Tourism Management Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Shenglong Trading Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
Anhui Gujing International Development Co., Ltd. Affiliated enterprise of controlling shareholder and actual controller
4. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
① Information on Acquisition of Goods and Reception of Labor Service
Connected party Content Reporting Period Same period of last year
Anhui Gujing International Travel Co., Ltd. Accepting labor service 786,329.00 38,228.00
Anhui Gujing Health Industry Co., Ltd. Purchase of materials 19,433.63 0.00
Anhui Gujing Hotel Development Co., Ltd. Accepting labor service 31.51 156.04
Anhui Gujing Hotel Development Co., Ltd. Accepting food and
16,766.00 4,819.00
accommodation services
Anhui Haochidian Catering Co., Ltd. Purchase of materials 245,594.50 0.00
Accepting food and
Anhui Haochidian Catering Co., Ltd. 34,440.00 30,300.00
accommodation services
Anhui Huixin Finance Investment Group Co.,
Accepting labor service 55,722.40 134,803.75
Ltd.
Anhui Lvyuan Ecological Agriculture
Accepting labor service 25,821.13 0.00
Development Co., Ltd.
Anhui Lvyuan Ecological Agriculture
Afforestation fees 404,865.62 0.00
Development Co., Ltd.
Anhui Ruijing Restaurant Management Co., Accepting food and
33,725.00 23,043.00
Ltd. accommodation services
Anhui Xinyuan Government Landscape
Afforestation fees 31,849.06 482,050.39
Engineering Co., Ltd.
Beijing Anhui Building Accepting food and 1,285.00 0.00
~154~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Connected party Content Reporting Period Same period of last year
accommodation services
Accepting food and
Bozhou Hotel Co., Ltd. 3,257,170.88 1,859,506.20
accommodation services
Accepting food and
Bozhou Huisheng Building Catering Company 2,695,540.00 1,349,445.00
accommodation services
Bozhou Gujing Junlai Hotel Management Co., Accepting food and
234,710.54 259,021.00
accommodation services
Ltd.
Holiday Inn Hefei Purchase of materials 387,017.20 132,717.52
Accepting food and
Holiday Inn Hefei 14,865.26 41,549.36
accommodation services
Anhui Ruijing Trade Travel (Group) Co., Ltd Purchase of materials 3,076,852.09 0.00
Anhui Gujing Group Co., Ltd. Accepting labor service 63,716.81 0.00
Total -- 11,385,735.63 4,355,639.26
② Information of Sales of Goods and Provision of Labor Service
Reporting Same period of last
Connected party Content
Period
year
Sales of white
Anhui Aoxin Real Estate Development Co., Ltd. 0.00 7,553.44
spirit
Sales of white
Anhui Gujing Real Estates Group Co., Ltd. 0.00 531,449.33
spirit
Providing
catering and
Anhui Gujing International Travel Co., Ltd. 206.00 46,824.00
accommodatio
n services
Sales of white
Anhui Gujing International Travel Co., Ltd. 389.36 0.00
spirit
Sales of small
Anhui Gujing International Travel Co., Ltd. 404.78 470.95
sized materials
Providing
catering and
Anhui Gujing Group Co., Ltd. 87,090.19 124,239.79
accommodatio
n services
Sales of small
Anhui Gujing Group Co., Ltd. 63,778.94 19,624.03
sized materials
~155~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Reporting Same period of last
Connected party Content
Period
year
Providing
catering and
Anhui Gujing Health Industry Co., Ltd. 29,059.00 0.00
accommodatio
n services
Providing
Anhui Gujing Health Industry Co., Ltd. 501,596.23 0.00
labor service
Sales of white
Anhui Gujing Health Industry Co., Ltd. 5,473,459.08 3,103.45
spirit
Sales of small
Anhui Gujing Health Industry Co., Ltd. 3,136.93 10,061.26
sized materials
Sales of white
Anhui Gujing Hotel Development Co., Ltd. 45,325.31 73,937.00
spirit
Sales of white
Anhui Huixin Finance Investment Group Co., Ltd. 452,567.02 1,236,821.89
spirit
Anhui Lejiu Home Tourism Management Co., Ltd. Utilities 179,311.29 0.00
Sales of white
Anhui Lejiu Home Tourism Management Co., Ltd. 3,114.91 0.00
spirit
Sales of small
Anhui Lejiu Home Tourism Management Co., Ltd. 5,849.50 0.00
sized materials
Sales of white
Anhui Lixin E-Commerce Co., Ltd. 63,756.26 64,181.89
spirit
Sales of small
Anhui Lvyuan Ecological Agriculture Development Co., Ltd 3,724.33 0.00
sized materials
Sales of small
Anhui Xinyuan Government Landscape Engineering Co., Ltd. 0.00 8,100.01
sized materials
Providing
catering and
Anhui Ruijing Trade Travel (Group) Co., Ltd. 22,829.26 12,388.57
accommodatio
n services
Sales of white
Anhui Ruijing Trade Travel (Group) Co., Ltd. 2,979,148.41 5,718,162.07
spirit
Sales of white
Anhui Ruixin Pawn Co., Ltd. 2,731.85 9,755.53
spirit
Providing
Anhui Shenglong Trading Co., Ltd. catering and 5,909.00 6,900.00
accommodatio
~156~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Reporting Same period of last
Connected party Content
Period
year
n services
Sales of white
Anhui Shenglong Trading Co., Ltd. 6,206.90 247,600.01
spirit
Sales of white
Anhui Xinxin Property Management Co., Ltd. 0.00 23,587.69
spirit
Sales of white
Anhui Youxin Financing Guarantee Co., Ltd. 2,203.45 4,374.98
spirit
Sales of white
Anhui Zhongxin Finance Leasing Co., Ltd. 3,956.90 7,026.79
spirit
Sales of white
Bozhou Anxin Small Loan Co., Ltd. 3,724.14 7,399.60
spirit
Sales of white
Bozhou Hotel Co., Ltd. 17,379.31 47,383.29
spirit
Sales of white
Bozhou Gujing Huishenglou Catering Co., Ltd. 17,767.24 34,082.23
spirit
Sales of white
Bozhou Gujing Junlai Hotel Management Company 4,655.17 9,270.55
spirit
Sales of white
Bozhou Ruifuxiang High Protein Feed Co., Ltd. 11,405.17 18,051.34
spirit
Sales of white
Bozhou Ruinong Thermal Power Co., Ltd. 190,103.02 145,564.41
spirit
Sales of white
Bozhou Gujing Hotel Co., Ltd. 0.00 9,363.27
spirit
Large Central Plain Wine Valley Culture Tourism Development Co., Water and
36,105.11 39,974.95
Ltd.
electricity
Providing
Large Central Plain Wine Valley Culture Tourism Development Co., catering and
2,735.00 10,818.00
Ltd.
accommodatio
n services
Large Central Plain Wine Valley Culture Tourism Development Co., Providing
15,665.68 15,057.68
Ltd.
services
Large Central Plain Wine Valley Culture Tourism Development Co., Sales of white
902,976.02 1,135,798.58
Ltd.
spirit
~157~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Reporting Same period of last
Connected party Content
Period
year
Large Central Plain Wine Valley Culture Tourism Development Co., Sales of small
841.63 2,516.56
Ltd.
materials
Providing
catering and
Holiday Inn Hefei 2,937.76 56,825.49
accommodatio
n services
Sales of white
Shanghai Beihai Restaurant Co., Ltd. 7,964.60 0.00
spirit
Sales of white
Anhui Jinzhai Gujing Real Estate Development Co., Ltd. 0.00 95,255.39
spirit
Providing
Anhui Gujing Real Estates Group Co., Ltd. 0.00 6,756.76
services
Providing
Bozhou Ruineng Thermoelectricity Co., Ltd. 0.00 252,252.25
services
Anhui Ruijing Trade Travel (Group) Co., Ltd. Sales materials 0.00 356.00
Sales of white
Bozhou Rufuxiang High-protein Feed Co., Ltd. 0.00 331,900.64
spirit
Sales of white
Anhui Hengxin Pawnbroking Co., Ltd. 0.00 3,683.59
spirit
Sales of white
Anhui Haochidian Catering Co., Ltd. 0.00 25,571.62
spirit
Sales of white
Hefei Longxin Financial Management Consulting Co., Ltd. 0.00 1,510.68
spirit
Sales of small
Anhui Medieval Tourism Development Co., Ltd. 0.00 120.85
materials
Providing
catering and
Anhui Medieval Tourism Development Co., Ltd. 0.00 13,125.00
accommodatio
n services
Bozhou Gujing Real Estate Development Co., Ltd. Sales of white 0.00 11,475.45
~158~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Reporting Same period of last
Connected party Content
Period
year
spirit
Sales of white
Bozhou Gujing Property Management Co., Ltd. 0.00 39,987.82
spirit
Total -- 11,150,014.75 10,470,264.68
(2) Information on Connected Lease
The Company serves as the leasee
The lease income confirmed
The lease income confirmed
Name of lessor Category of leased assets in the Same period of last
in the Reporting Period
year
Anhui Gujing Group Co., Ltd. Houses and buildings 1,095,238.10 1,095,238.10
The Company serves as the lessor
The lease income
The lease income confirmed
Name of lessee Category of leased assets confirmed in the Same
in the Reporting Period
period of last year
Anhui Gujing Hotel Management Co., Ltd. Houses and buildings 689,124.81 246,190.48
5. Accounts Receivable and Payable of Connected Party
(1) Accounts Receivable
Item Ending balance Beginning balance
Other accounts receivable:
Bozhou Ruineng Thermoelectricity Co., Ltd. 14,521.45 14,521.45
Anhui Gujing Real Estates Group Co., Ltd. 0.00 25,342.50
Total 14,521.45 39,863.95
(2) Accounts Payable
Item Ending balance Beginning balance
Advances from customers:
Anhui Ruijing Trade Travel (Group) Co., Ltd. 1,866,176.31 4,085,856.31
Large Central Plain Wine Valley Culture Tourism Development Co., Ltd. 1,744,615.38 1,881,236.80
Anhui Gujing Health Industry Co., Ltd. 1,858,304.40 4,036,729.60
~159~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Ending balance Beginning balance
Bozhou Ruineng Thermoelectricity Co., Ltd. 0.00 43,200.00
Anhui Shenglong Trading Co., Ltd. 141,581.50 0.00
Total 5,610,677.59 10,047,022.71
Other accounts payable:
Anhui Gujing Hotel Development Co., Ltd. 50,000.00 50,000.00
Large Central Plain Wine Valley Culture Tourism Development Co., Ltd. 50,000.00 0.00
Anhui Ruijing Trade Travel (Group) Co., Ltd. 85,000.00 35,000.00
Total 185,000.00 85,000.00
XII. Commitments and Contingency
1. Significant Commitments
Operating Lease Commitments
As of the balance sheet date, the irrevocable operating lease contracts the Company signed were listed as
follows:
Item Ending balance Beginning balance
Minimum lease payments of irrevocable operating lease
1 year after balance date 2,300,000.00 2,300,000.00
2 years after balance date 2,300,000.00 2,300,000.00
3 years after balance date 2,300,000.00 2,300,000.00
Subsequent years 18,208,333.33 19,358,333.33
Total 25,108,333.33 26,258,333.33
2. Contingency
(1) Due to the infringement behaviors on the Company’s trademark in the market, the Company filed lawsuits
against such infringement acts. Since the individual and overall amount of action was relatively small, the
contingency is expected to have no significant impacts on the Company.
(2) There was no other contingency of the Company other than the above-mentioned event.
XIII. Events after the Balance Sheet Date
As of 30 June 2019, there was no significant event of the Company after the balance sheet date.
XIV. Other Significant Events
Segment Information
~160~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
There was no segment information based on operating segments to disclose, since the Company didn’t
determine operating segments in accordance with internal organizational structure, management requirements
and internal report systems.
XV. Notes of Main Items in the Financial Statements of the Company
1. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Ending balance
Carrying amount Bad debt provision
Category Carrying
Proport Amoun Withdrawal
Amount value
ion (%) t proportion (%)
Accounts receivable with significant single amount for which bad debt
0.00 0.00 0.00 0.00 0.00
provision separately accrued
Accounts receivable withdrawal of bad debt provision of by credit risks 10,793,50 141,121 10,652,38
100.00 1.31
characteristics: 5.68 .87 3.81
Accounts receivable with insignificant single amount for which bad debt
0.00 0.00 0.00 0.00 0.00
provision separately accrued
10,793,50 141,121 10,652,38
Total 100.00 1.31
5.68 .87 3.81
(Continued)
Beginning balance
Carrying amount Bad debt provision
Category Carrying
Proporti Proportion
Amount Amount value
on (%) (%)
Accounts receivable with significant single amount for which bad debt
0.00 0.00 0.00 0.00 0.00
provision separately accrued
Accounts receivable withdrawal of bad debt provision of by credit risks 9,527,072 141,121. 9,385,950
100.00 1.48
characteristics: .41 87 .54
Accounts receivable with insignificant single amount for which bad debt
0.00 0.00 0.00 0.00 0.00
provision separately accrued
9,527,072 141,121. 9,385,950
Total 100.00 1.48
.41 87 .54
① In the groups, accounts receivable adopted aging analysis method to withdraw bad debt provision
~161~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion (%)
Within 1 year 0.00 0.00 0.00
[Of which: Within 6 months] 0.00 0.00 0.00
[7-12 months] 0.00 0.00 0.00
1 to 2 years 0.00 0.00 0.00
2 to 3 years 0.00 0.00 0.00
Over 3 years 141,121.87 141,121.87 100.00
Total 141,121.87 141,121.87 100.00
② In the groups, accounts receivable adopted other methods to withdraw bad debt provision
Ending balance
Name of the group
Accounts receivable Bad debt provision Withdrawal proportion (%)
Connected group within the
10,652,383.81 0.00 0.00
combination scope
Total 10,652,383.81 0.00 0.00
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The amount of bad debt provision withdrawn during the Reporting Period was RMB 0.00.
(3) Particulars of Accounts Receivable with Actual Verification during the Reporting Period
The amount of accounts receivable actually verified during the Reporting Period was RMB 0.00.
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Total amount of the Top 5 accounts receivable in ending balance collected according to the arrears party was
RMB10,270,716.85, accounting for 95.16% of the total ending balance of accounts receivable, and the total of
ending balance of bad debt provision withdrawn was RMB0.00.
2. Other Accounts Receivable
Item Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other accounts receivable 105,037,195.62 110,800,665.19
Total 105,037,195.62 110,800,665.19
(1) Other Accounts Receivable Disclosed by Category
~162~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending balance
Carrying amount Bad debt provision
Category Withdrawal
Proportion Carrying value
Amount Amount proportion
(%)
(%)
Other accounts receivable with significant single
amount for which bad debt provision separately 40,850,949.35 27.82 40,850,949.35 100.00 0.00
accrued
Other accounts receivable withdrawn bad debt
106,003,851.26 72.18 966,655.64 0.91 105,037,195.62
provision according to credit risks characteristics
Other accounts receivable with insignificant
single amount for which bad debt provision 0.00 0.00 0.00 0.00 0.00
separately accrued
Total 146,854,800.61 100.00 41,817,604.99 28.48 105,037,195.62
(Continued)
Beginning balance
Carrying amount Bad debt provision
Category Withdrawal
Proportio Carrying value
Amount Amount proportion
n (%)
(%)
Other accounts receivable with significant single
amount for which bad debt provision separately 40,850,949.35 26.80 40,850,949.35 100.00 0.00
accrued
Other accounts receivable withdrawn bad debt
111,581,253.05 73.20 780,587.86 0.70 110,800,665.19
provision according to credit risks characteristics
Other accounts receivable with insignificant
single amount for which bad debt provision 0.00 0.00 0.00 0.00 0.00
separately accrued
Total 152,432,202.40 100.00 41,631,537.21 27.31 110,800,665.19
A. Other receivable with single significant amount for which bad debt provision separately accrued at the
end of the period
Ending balance
Other accounts receivable (by unit) Other accounts Bad debt Withdrawal proportion
Withdrawal reason
receivable provision (%)
~163~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending balance
Other accounts receivable (by unit) Other accounts Bad debt Withdrawal proportion
Withdrawal reason
receivable provision (%)
100.00 Under the bankruptcy
Hengxin Securities 29,010,449.35 29,010,449.35
liquidation
100.00 Under the bankruptcy
Jianqiao Securities 11,840,500.00 11,840,500.00
liquidation
Total 40,850,949.35 40,850,949.35 --
B. In the groups, other accounts receivable adopted aging analysis method to withdraw bad debt provision
Ending balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion (%)
Within 1 year 3,685,136.21 49,084.05 1.33
[Of which: Within 6 months] 3,379,319.03 33,793.19 1.00
[7-12 months] 305,817.18 15,290.86 5.00
1 to 2 years 392,570.00 39,257.00 10.00
2 to 3 years 377,313.00 188,656.50 50.00
Over 3 years 689,658.09 689,658.09 100.00
Total 5,144,677.30 966,655.64 18.79
C. In the groups, other accounts receivable adopted other methods to withdraw bad debt provision
Ending balance
Name of the group
Other accounts receivable Bad debt provision Withdrawal proportion (%)
Connected group within the
100,859,173.96 0.00 0.00
consolidation scope
Total 100,859,173.96 0.00 0.00
② Other Accounts Receivable Classified by Account Nature
Nature Ending carrying amount Beginning carrying amount
Intercourse funds between entities within 100,859,173.96 108,389,173.96
combination scope
Securities investment 40,850,949.35 40,850,949.35
Margin and cash pledge 2,508,139.09 909,657.06
~164~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Nature Ending carrying amount Beginning carrying amount
Rent and utilities fee 807,179.22 639,732.73
Others 1,829,358.99 1,642,689.30
Total 146,854,800.61 152,432,202.40
③ Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The amount of bad debt provision withdrawn during the Reporting Period was RMB 186,067.78.
④ Particulars about Other Accounts Receivable with Actual Verification during the Reporting Period
No such cases in the Reporting Period.
⑤ Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Proportion to
Name of total ending
Ending balance of
the Relationship Nature Ending balance Aging balance of
bad debt provision
other accounts
entity
receivable (%)
Related party
within Related party within
No.1 86,909,097.13 Within 3 years 59.18 0.00
combination combination scope
scope
Non-connected
No.2 Securities investment 29,010,449.35 Over 3 years 19.75 29,010,449.35
party
Related party
within Related party within
No. 3 13,950,076.83 Within 3 years 9.50 0.00
combination combination scope
scope
Non-connected
No. 4 Securities investment 11,840,500.00 Over 3 years 8.06 11,840,500.00
party
Non-connected Within 6
No. 5 Margin 500,000.00 0.34 5,000.00
party months
Total -- -- 142,210,123.31 -- 96.83 40,855,949.35
3. Long-term Equity Investment
(1) Category of Long-term Equity Investment
Ending balance Beginning balance
Item Carrying Depreciati Carrying Depreciation
Carrying value Carrying value
amount on reserve amount reserve
~165~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Ending balance Beginning balance
Item Carrying Depreciati Carrying Depreciation
Carrying value Carrying value
amount on reserve amount reserve
Investment to 1,148,213,665. 1,148,213,665. 1,148,213,665. 1,148,213,665.
0.00 0.00
subsidiaries
32 32 32 32
1,148,213,665. 1,148,213,665. 1,148,213,665. 1,148,213,665.
Total 0.00 0.00
32 32 32 32
(2) Investment to Subsidiaries
Ending balance
Depreciation reserve
Investee Beginning balance Increase Decrease Ending balance of depreciation
withdrawn
reserve
Bozhou Gujing Sales Co., Ltd. 68,949,286.89 0.00 0.00 68,949,286.89 0.00 0.00
Anhui Longrui Glass Co., Ltd. 85,267,453.06 0.00 0.00 85,267,453.06 0.00 0.00
Shanghai Gujing Jinhao Hotel
49,906,854.63 0.00 0.00 49,906,854.63 0.00 0.00
Management Co., Ltd.
Bozhou Gujing Hotel Co., Ltd. 648,646.80 0.00 0.00 648,646.80 0.00 0.00
Anhui Swisse Will Science & Technology
40,000,000.00 0.00 0.00 40,000,000.00 0.00 0.00
Co., Ltd.
Anhui Subway Cordial Wine Co., Ltd. 30,000,000.00 0.00 0.00 30,000,000.00 0.00 0.00
Anhui Yuanqing Environmental Co. , Ltd. 16,000,000.00 0.00 0.00 16,000,000.00 0.00 0.00
Anhui Gujing Cloud E-commerce Co., Ltd. 5,000,000.00 0.00 0.00 5,000,000.00 0.00 0.00
Anhui Zhenrui Construction Engineering
10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
Co., Ltd.
Wuhan Pride Yellow Crane Tower Distillery
816,000,000.00 0.00 0.00 816,000,000.00 0.00 0.00
Co., Ltd.
Anhui Jinyunlai Culture & Media Co., Ltd. 15,000,000.00 0.00 0.00 15,000,000.00 0.00 0.00
Bozhou Gujing Waste Reclamation Co., Ltd. 1,441,423.94 0.00 0.00 1,441,423.94 0.00 0.00
Anhui RunAnXinKe Testing Technology
10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
Co., Ltd
Total 1,148,213,665.32 0.00 0.00 1,148,213,665.32 0.00 0.00
4. Operating Revenue and Cost of Sales
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
~166~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 3,104,047,962.07 1,254,351,553.67 2,331,145,973.42 930,097,754.58
Other operations 40,634,501.51 23,567,023.24 42,363,746.54 32,348,972.74
Total 3,144,682,463.58 1,277,918,576.91 2,373,509,719.96 962,446,727.32
5. Investment Income
Item Reporting Period Same period of last year
Investment income generating from
long-term equity accounted by cost method
Investment income generating from
long-term equity accounted by equity
method
Investment income from disposal of
long-term equity investment
Investment income from holding of trading
0.00 1,271,471.00
financial assets
Investment income from disposal of trading
financial assets
Dividend income from holding of other
equity instrument investment
Investment income from holding of
held-to-maturity investment
Investment income from holding of
0.00 49,031,673.79
available-for-dale financial assets
Investment income from disposal of
0.00 10,999,123.54
available-for-sale financial assets
Investment income from disposal of
held-to-maturity investment
Income from remeasurement of residual
stock rights at fair value after losing control
power
Interest income from holding of credit
investment
Interest income from holding of other credit
investment
Interest income from disposal of other
credit investment
~167~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Other investment income 31,883,868.76 0.00
Total 31,883,868.76 61,302,268.33
XVI. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Item Amount Explanation
Gains/losses on the disposal of non-current assets -310,454.93
Tax rebates, reductions or exemptions due to approval beyond authority or the lack of
official approval documents
Government grants recognized in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 30,803,918.68
government’s unified standards
Capital occupation charges on non-financial enterprises that are recorded into current gains
and losses
Gains due to that the investment costs for the Company to obtain subsidiaries, associates and
joint ventures are lower than the enjoyable fair value of the identifiable net assets of the
investees when making the investments
Gain/loss on non-monetary asset swap
Gain/loss on entrusting others with investments or asset management
Asset impairment provisions due to acts of God such as natural disasters
Gains and losses from debt restructuring
Expenses on business reorganization, such as expenses on staff arrangements, integration,
etc.
Gain/loss on the part over the fair value due to transactions with distinctly unfair prices
Current net gains and losses of subsidiaries acquired in business combination under the same control
from period-begin to combination date
Profit and loss from contingencies irrelative to the normal business operations of company
Gain/loss from change of fair value of trading financial assets and liabilities, and investment
gains from disposal of trading financial assets and liabilities and available-for-sale financial 83,312,387.28
assets, other than valid hedging related to the Company’s common businesses
Depreciation reserves returns of receivables with separate depreciation test
Gain/loss on entrustment loans
~168~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Item Amount Explanation
Gain/loss on change of the fair value of investing real estate of which the subsequent
measurement is carried out adopting the fair value method
Effect on current gains/losses when a one-off adjustment is made to current gains/losses
according to requirements of taxation, accounting and other relevant laws and regulations
Custody fee income when entrusted with operation
Other non-operating income and expense other than the above 9,823,095.95
Project confirmed with the definition of non-recurring gains and losses and losses
Subtotal 123,628,946.98
Income tax effects 30,769,441.49
Non-controlling interests effects (after tax) 10,414,170.58
Total 82,445,334.91
Note: The number “+” among the non-current gains and losses items refers to profits and revenues, while “-”
referred to losses or expenditure.
The recognition of the non-current gains and losses items was executed according to the regulations of No.1 of the
Information Disclosure Explanatory Notice of the Companies Public Offering Securities-Non-current Gains and
losses (Z-J-H-Announcement [2008] No. 43) .
2. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to ordinary
16.71 2.48 2.48
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
15.61 2.32 2.32
deduction of non-recurring profit
and loss
~169~
Gujinggong Liquor Aged Original Liquor Interim Report 2019
Part XI Documents Available for Reference
(I) Financial statements signed and sealed by the Company’s legal representative, the
Company’s Chief Accountant and the head of the Company’s financial department
(equivalent to financial manager); and
(II) All originals of the Company’s documents and announcements that have been
publicly disclosed in the Reporting Period on the media designated by the China
Securities Regulatory Commission.
(III) The interim report disclosed in other securities markets.
Chairman of the Board: (Liang Jinhui)
Anhui Gujing Distillery Company Limited
23 August 2019
~170~
