YANTAI CHANGYU PIONEER WINE
COMPANY LIMITED
The 3rd Quarter Report of 2009
1. Important
1.1 The Board of Directors, board of Supervisors, senior managers of the Company
collectively and individually accept full responsibility for the truthfulness, accuracy and
completeness of the information contained in this report and confirm that to the best
of their knowledge and belief there are no other facts the omission of which would
make any statement herein misleading.
1.2 No directors or senior managers have any dissidence on the truthfulness, accuracy and
completeness of the information contained in this report.
1.3 All directors attend the Board of Directors’ meetings.
1.4 The 3rd quarter report of 2009 has not been audited.
1.5 The chairman of the Board of Directors Mr. Sun Liqiang, the chief accountant Mr. Leng
Bin and the chief of accounting department Mr. Jiang Jianxun assure the truth and
integrity of the financial and accounting statement in this report.2
2. THE BASIC INFORMATION OF THE COMPANY
2.1 Main accountant data and Financial index
Unit: CNY
At the end of report period
At the end of last
year
More or less
(%)
Total assets 4,414,390,742 4,060,932,580 8.70
Owner’s equity (or shareholders’
equity)
2,638,125,291 2,543,633,170 3.71
Capital stock 527,280,000 527,280,000 0.00
Net assets per Share attributed to
shareholders of listed company
5.00 4.82 3.73
During the
report period
More or less
than same
period of last
year
(%)
Beginning of
this year to the
end of the report
period
More or less
than same
period of last
year(%)
total business income 981,241,847.00 32.10% 2,950,668,008.00 15.08%
Net profit per share attributed to
shareholders of listed company
271,992,830.00 43.36% 727,228,121.00 23.57%
Net cash flows from operating
activities
- - 1,065,864,036.00 11.28%
Net cash flows per share from
operating activities
- - 2.02 10.99%
Basic Earnings per Share 0.52 44.44% 1.38 23.21%
Diluted Earnings per Share 0.52 44.44% 1.38 23.21%
Rate of return of net assets (%) 10.31% 1.83% 27.57% 1.27%
Rate of return of net assets
after deducting non-current profit
and loss
10.08% 1.79% 27.10% 1.04%
Item for irregular profit and losss Unit: CNY
Item for irregular profit and losss From Janurary to
September 2009
appendix
Return from investment 1,223,734.00
Other net non-operating income 16,501,955.00
Effect index for the income tax -4,431,422.00
Effect index on shareholders’ equity attributed to the
minority shareholders
-933,943.00
Total 12,360,324.00
2.2 The total number of the shareholders and top 10 shareholders with
unlimited shares at the end of the report period
Unit； share
Total number of shareholders 13,297
The top 10 shareholders with unlimited shares3
Name of Shareholders Number of unlimited
shares
The Type of shares
YANTAI CHANGYU GROUP CO. LTD. 26,364,000 A share
HTHK/CMG FSGUFP-CMG FIRST STATE CHINA GROWTH FD 22,498,466 B share
GAO-LING FUND,L.P. 14,467,301 B share
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 7,399,747 B share
NUOAN VALUE-ADDED SECURITIES - ORIENTED
CAPITAL FUND
5,039,062 A share
GOVERNMENT OF SINGAPORE INV. CORP.- A/C "C" 4,893,758 B share
TAIKANG LIFE CO. LTD. – BONUS -019-FH002 SHEN 4,634,875 A share
HUITIANFU GROWTH FOCUS SECURITIES- ORIENTED
CAPITAL FUND
4,249,711 A share
MIRAE ASSET CHINA SOLOMON EQUITY INVESTMENT TRUST 1 4,012,950 B share
UBS (LUXEMBOURG) S.A. 4,006,728 B share
3. MAJOR ISSUES
3.1 The Great Change and Reasons on Main Accountant Data and Financial Index
(√) applicable ( ) not applicable
At the end of the report period, comparing with the beginning of report period, the account
receivable is 169.12% up, mainly due to the large increase of payment by bank
acceptance; payment in advance of 179.64% up because of the increase of the advance
payment for the projects with the investment in the fixed assets and the advance payment
of grape purchasing; intangible assets of 64.48% up caused by the land use right of the
investment in Ningxia and Xinjiang; prepaid amount of 32.63% up contributed by increase
on prepaid payment by clients; staff salary payable of 26.21% up because of the increase
of the accumulated management salary of sales team; other payable amount of 39.74%
up caused by the increase of the transportation cost, warehousing charges and
advertisement cost.
And comparing with same period of last year, the financial expenditure is 24.91% up
contributed by decrease of bank deposit interest, net profit of 23.62% up, because of sales
increase from big market demand, the net cash flow from operating activites of 42.31%
down, mainly due to the decrease of guarantee money from distributors. Cash in flow from
investment activites of 1691.02% up due to taking back the certificate deposit at maturity
of 3 month or over.
3.2 Analysis and explanation on the situation, impact and solution of other major
issues
( )applicable ( √ ) not applicable
3.3 The Execution of Promised Issues by the Company, Shareholders and Actual
Controller
( √ )applicable ( ) not applicable4
Promised item Promised issues The execution
of promised
issues
For equity transfer Besides the least legal promises, Yantai Changyu Group Co., LTD
have also made special promises as following:
1. Changyu Group, as from the day of being granted the right of
circulation on stock market as March 21,2006, can’t transact or
transfer its holding within 36 months. 2. Within 12 months after the
expiry of the afore-said promising period, the amount of the former
non-circulating stock that Changyu Group may list for transaction
at Stock Exchange can’t be over 5% of its total and within 24
months after the period, can’t be over 10% of its total.
3. Changyu Group will propose during the shareholders’ meeting
2005, 2006 and 2007 that the profit distribution in cash shall not be
lower than 65% of the distributable profits made in that year and
promise to cast an affirmative vote for it.
Yantai
Changyu
Group Co.,
Ltd has voted
for the profit
distribution
plan during
the
shareholders’
meeting of
2005, 2006
and 2007.
For limited shares
transaction
Yantai Changyu Group Co., Ltd. released the limit condition to
26.364 million shares of the Company on March 25th,2009, and
made the promise that Group company will issue the suggestive
announcement through the Company within two transaction days
before the first decreasing of shares by Group Company, disclosed
information will include but not only limit to the planned transaction
quantity, transaction time, transaction price range and reason for
share decreasing as required by Shenzhen Stock Exchange, if
Group company intends to sell the current shares of the Company
after releasing the limit condition and the total quantity for share
decreasing is up to 5% within 6 months from the first transaction.
Yantai
Changyu
Group Co.,
Ltd. did not
decrease the
share holding
of the
Company
during report
period.
Promise in acquisition
report or report on
change of
shareholders’ equity
No No
Promise for major
assets merger
No No
Promise for issurance Non-competitive promise Performed
Other promise
including
supplemental promise
No No
3.4 Warning and explanation for the estimation on the possible loss of total net
profit in the period from the beginning of this year to the end of the next report
period or the great change comparing with same period of last year.
( )applicable ( √ ) not applicable5
3.5 Other major issues
3.5.1 The information on the Company’s capital providing to holding shareholder
or its related parties, external guarantee against stated procedure
( )applicable ( √ ) not applicable
3.5.2 The compensation from related party to the Company on earnings
promised for stock equity transfer or major assets merger.
( )applicable ( √ ) not applicable
3.5.3 Securities investment
( √ )applicable ( ) not applicable
item type Code Ab Initial
investment
(CNY)
Share
quantity
(share)
Book value at
end of report
period
Proportion on
total securities
investiment
(%)
Profit and
loss during
report
period
Other securities investment by
end of report period
0.00 - 0.00 0.00 0.00
Profit and loss on securites
sold during report period
- 1,223,734
Total 0.00 - 0.00 0.00 1,223,734
3.5.4 Holding share equity of other listed company
( )applicable ( √ ) not applicable
3.5.5 Holding share equity of unlisted financial company or ready-to-list
company
( )applicable ( √ ) not applicable
3.5.6 The Company’s Receptions, Studies and Visits during report period
Reception date Reception place Reception way Visitor Main topic and
material provided
July 15, 2009 Meeting room of
the Company
Field survey Runhui
Investment
Principal
operation, future
development
July 18, 2009 Meeting room of
the Company
Field survey Yuanta Securities
(Hongkong)
Principal
operation, future
development
July 26, 2009 Meeting room of
the Company
Field survey Bonny
Investment
Principal
operation, future
development
August 5, 2009 Meeting room of
the Company
Field survey Shanghai
Securities
Principal
operation, future
development
August 11, 2009 Meeting room of
the Company
Field survey Clairvoyance Principal
operation, future
development
August 15, 2009 Meeting room of
the Company
Field survey Chongyang
Investment
Principal
operation, future
development6
August 17,2009 Meeting room of
the Company
Field survey E Fund Principal
operation, future
development
August 18,2009 Meeting room of
the Company
Field survey Rising Securities Principal
operation, future
development
August 18,2009 Meeting room of
the Company
Field survey New China Fund Principal
operation, future
development
August 18,2009 Meeting room of
the Company
Field survey Shanghai V Stone
Investment
Principal
operation, future
development
August 18,2009 Meeting room of
the Company
Field survey New China Fund Principal
operation, future
development
August 25,2009 Meeting room of
the Company
Field survey Shenyin Wanguo
Securities
Principal
operation, future
development
August 25,2009 Meeting room of
the Company
Field survey Fullgoal Fund Principal
operation, future
development
August 28,2009 Meeting room of
the Company
Field survey Everbright
Securities
Principal
operation, future
development
Sept. 8,2009 Meeting room of
the Company
Field survey GF Fund Principal
operation, future
development
Sept. 15,2009 Meeting room of
the Company
Field survey Shenzhen
Hongchou
Investment
Principal
operation, future
development
Sept. 22,2009 Meeting room of
the Company
Field survey CICC Principal
operation, future
development
3.5.7 The proposal and its execution for shareholding increase proposed by
shareholder holding over 30% shares
( )applicable ( √ ) not applicable
3.6 Investment situation for the derivatives
( )applicable ( √ ) not applicable
3..6.1 Position situation for the derivatitives investment at the end of the
report period
( )applicable ( √ ) not applicable7
4. Appendix
4.1 Balance sheet (1)
Yantai Changyu Wine Poineer Co., Ltd. Unit: CNY
At 30 September 2009 At 31 December 2008
Assets Note
Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company amount
Current assets：
Monetary fund 1,962,980,968 1,146,707,205 1,748,573,840 1,199,543,976
Financial assets for trade
Notes receivable 36,004,142 9,462,255 13,378,706 5,215,800
Account receivable 96,912,371 10,049,791 82,343,029 13,271,136
Advance money 14,762,353 10,242,592 5,278,985 2,942,070
Interest receivalbe 17,133,670 17,133,670 19,176,250 19,176,250
Dividend receivable 406,972,236
Other account receivable 32,579,305 688,777,508 23,713,826 361,305,380
Inventories 882,041,190 381,016,848 997,942,600 438,936,622
Non-current assets due within one year 15,000,000 15,000,000 15,000,000 15,000,000
Other current assets 253,935
Total current assets 3,057,413,999 2,278,389,869 2,905,661,171 2,462,363,470
Non-current assets：
Financial assets for sale
Investment held to expiration
Long-term account receivable
Long-term equity investment 10,000,000 229,077,178 10,000,000 169,077,178
Real estate for investment
fixed assets 928,193,738 335,434,607 728,229,135 351,548,553
Construction in progress 128,682,568 3,241,918 154,490,715 8,263,910
Project material
Liquidation of fixed assets
Biological assets for production 41,312,263 11,738,099 40,675,990 11,738,099
Oil and gas assets
Intangible assets 166,825,866 91,346,577 101,426,926 93,648,384
Development expenditure
Goodwill
Long-term deferred expenses 22,771,275 21,452,595
Assets of deferred income tax 53,141,981 14,452,461 91,950,794 14,950,351
Other non-current assets 6,049,052 5,912,909 7,045,254 6,747,847
Total non-current assets 1,356,976,743 691,203,749 1,155,271,409 655,974,322
Total assets 4,414,390,742 2,969,593,618 4,060,932,580 3,118,337,7928
Legal representative:Sun Liqiang Person in charge of accounting; Leng Bin
Person in charge of accounting organ: Jiang Jianxun
Balance Sheet (2)
Yantai Changyu Wine Poineer Co., Ltd. Unit:CNY
At 30 September 2009 At 31 December 2008
Liabilites, rights and interests of
shareholders Note
Consolidated
amount
Parent company
amount
Consolidated
amount
Parent
company
amount
Current liabilities:
Short-term loan
Financial liabilities for trade
Notes payable
Accounts payable 238,170,416 118,417,034 220,708,265 169,592,563
Advance money 250,286,684 188,709,167
Wage payable 191,642,973 106,600,092 151,849,547 105,145,026
Tax payable 368,498,797 57,785,215 457,714,254 68,218,327
Interest payable
dividend payable
Other accounts payable 577,029,526 630,780,154 412,923,817 266,834,580
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 1,625,628,396 913,582,495 1,431,905,050 609,790,496
Non-current liabilities：
Long-term loan
Bond payable
Long-term accounts payable 15,000,000
Special accounts payable
Estimated liabilities
Liabilities of deferred income tax
Oterh non-current liabilities
Total non-current liabilities 15,000,000
Total liabilities 1,640,628,396 913,582,495 1,431,905,050 609,790,496
Shareholder rights and interests：
Capital stock 527,280,000 527,280,000 527,280,000 527,280,000
Capital reserve 557,222,454 557,222,454 557,222,454 557,222,454
Less: treasury stock
Surplus reserve 295,942,630 295,942,630 295,942,630 295,942,630
Undistributed profit 1,257,680,207 675,566,039 1,163,188,086 1,128,102,2129
Total shareholder rights and interests of
parent company
2,638,125,291 2,056,011,123 2,543,633,170 2,508,547,296
Minority shareholder rights and interests
135,637,055 85,394,360
Total shareholder rights and
interests
2,773,762,346 2,056,011,123 2,629,027,530 2,508,547,296
Liabilites and total shareholders rights
and interests
4,414,390,742 2,969,593,618 4,060,932,580 3,118,337,792
Legal representative: Sun Liqiang Person in charge of accounting: Leng Bin
person in charge of accounting organ Jiang Jianxun
4.2 Profit Statement for Report Period
Yantai Changyu Wine Poineer Co., Ltd. Unit: CNY
July 1, 2009 to Sept.30 2009 July 1, 2008 to Sept.30 2008
Item Note
Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company
amount
Business income 981,241,847 350,972,907 742,798,725 299,941,677
Less: business cost 292,745,406 265,401,112 255,925,732 269,649,062
Business tax and associate
charges
60,205,889 44,427,748 40,679,968 23,600,589
Sales expenses 252,965,274 174,374,025
Management expenses 32,356,195 47,758,463 20,535,882 43,492,038
Financial expenses -6,706,329 -8,208,194 -9,232,389 -9,229,864
Assets depreciation loss
Add: fair value charge profit (loss is
listed with "-")
Investment profit ((loss is listed with
"-")
1,223,734 9,723,734 800,370 800,370
Including: investment profit for
joint-run business and joint venture
Operating profit 350,899,146 11,317,512 261,315,877 -26,769,778
Add: Non-operating income 8,239,032 339,275 4,904,437 3,219,285
less: non-operating expenditures 115,478 65,143 42,740 77
Including: non-current assets
disposing loss
Total profit 359,022,700 11,591,644 266,177,574 -23,550,570
Less: income tax expenses 84,721,205 656,437 76,785,220 -5,549,640
Net profit 274,301,495 10,935,207 189,392,354 -18,000,93010
Net profit of parent
company's owners
271,992,830 10,935,207 189,724,921 -18,000,930
Minority shareholder
profit and loss
2,308,665 -332,567
EPS
Basic EPS 0.52 0.02 0.36 -0.03
Diluted EPS 0.52 0.02 0.36 -0.03
Legal representative: Sun Liqiang Person in charge of accounting Leng Bin
Person in charge of accounting organ: Jiang Jianxun
4.3 Profit Statement from Jan.1st 2009 to Sept. 30, 2009
Yantai Changyu Wine Poineer Co., Ltd. Unit: CNY
Nine months ended 30
September 2009
Nine months ended 30 September
2008
Item Note
Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company
amount
Business income 2,950,668,008 820,379,148 2,564,046,035 940,275,266
Less: business cost 882,157,615 617,772,048 803,452,004 749,567,492
Business tax and associate
charges
167,008,419 100,302,787 166,885,185 108,924,379
Sales expenses 837,306,257 717,757,756
Management expenses 138,817,469 104,388,709 130,454,507 127,509,671
Financial expenses -21,828,691 -27,455,515 -29,071,450 -30,914,110
Assets depreciation loss 153,484
Add: fair value charge profit (loss is
listed with "-")
Investment profit ((loss is listed with
"-")
1,223,734 161,440,793 2,756,502 182,579,464
Including: investment profit for
joint-run business and joint venture
Operating profit 948,430,673 186,811,912 777,171,051 167,767,298
Add: Non-operating income 16,663,786 1,008,519 8,261,625 3,412,168
less: non-operating expenditures 161,831 85,913 3,230,864 100,077
Including: non-current assets
disposing loss
Total profit 964,932,628 187,734,518 782,201,812 171,079,389
Less: income tax expenses 234,346,678 7,534,691 191,201,760 -932,447
Net profit 730,585,950 180,199,827 591,000,052 172,011,836
Net profit of parent 727,228,121 180,199,827 588,529,407 172,011,83611
company's owners
Minority shareholder
profit and loss
3,357,829 2,470,645
EPS
Basic EPS 1.38 1.12 0.33
Diluted EPS 1.38 1.12 0.33
Legal representative: Sun Liqiang Person in charge of accounting Leng Bin
Person in charge of accounting organ: Jiang Jianxun
4.4 Cash Flow Statement from Jan.1st,2009 to Sept.30, 2009
Yantai Changyu Wine Poineer Co., Ltd. Unit: yuan
Nine months ended 30
September 2009
Nine months ended 30
September 2008
Item Cosolidated
amount
Parent
company
amount
Cosolidated
amount
Parent
company
amount
1. Cash flows from operating activities:
Cash received from sales of goods and
rending of services 3,576,476,173 958,818,493 3,086,744,204 1,092,426,809
Tax refund received 6,904,140 3,264,140 7,361,194 3,219,838
Other cash received related to operating
activities 171,904,016 479,768,745 297,998,576 606,316,298
Subtotal of cash flows of operating
activities 3,755,284,329 1,441,851,378 3,392,103,974 1,701,962,945
Cash paid for goods and services 1,146,173,905 704,364,443 1,067,640,264 843,238,416
Cash paid to and on behalf of employees 175,665,303 73,901,001 179,416,144 83,960,590
Cash paid for taxes and expenses 795,405,370 166,860,556 703,007,730 187,037,437
Other cash paid related to operating
activities 572,175,715 39,931,149 484,197,047 21,215,465
Sub-total of cash outflows of operating
activities 2,689,420,293 985,057,149 2,434,261,185 1,135,451,908
Net cash flow from operating activities 1,065,864,036 456,794,229 957,842,789 566,511,037
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term
of over 3 months 379,819,840 357,819,840
Cash received from obtaining investment
profit 1,223,734 161,440,793 2,756,502 182,579,464
Cash received from interest income 27,307,980 27,256,230 20,043,470 20,043,47012
Net cash received from disposal of fixed
assets, intangible assets and other long-term
assets
Net cash received from disposal of branch
and other business unit
Other cash received related to investing
activities
Subtotal of cash flows of investment
activities 408,351,554 546,516,863 22,799,972 202,622,934
Cash paid to acquire fixed assets, intangible
assets and other long-term assets 247,253,352 7,803,577 179,082,718 41,460,143
Fixed deposit with the term of over 3
months 112,000,000 112,000,000
Cash for investment 14,910,000
Net cash paid to acquire branch and other
business unit 57,789,176
Other cash paid related to investment
activities
Subtotal of cash outflows of investment
activities 247,253,352 65,592,753 291,082,718 168,370,143
Net cash flow from investing activites 161,098,202 480,924,110 -268,282,746 34,252,791
3.Cash flow from financing activites
Cash received from acquiring investment 150,000
Including: cash received from acquiring
minority shareholders investment by branch 150,000
Cash received from acquiring loans
Other cash received related to finaning
activities
Subtotal cash flows of financing activities 150,000
Cash paid to pay debts
Cash paid to distribute dividend, profit or
pay interest 632,736,000 632,736,000 580,008,000 580,008,000
Including: dividend and profit paid to
minority shareholders by branch
Other cash paid related to financing
activities
Subtotal of cash outflows of financing
activities 632,736,000 632,736,000 580,008,000 580,008,000
Net cash flow from financing activites -632,736,000 -632,736,000 -579,858,000 -580,008,000
4. Influences of exchange rate fluctuation
on cash and cash equivalents
5. Net Increase in cash and cash
equivalents 594,226,238 304,982,339 109,702,043 20,755,82813
Add: balance at the beginning of the
period of cash and cash equivalents 792,724,722 265,694,858 856,534,631 608,642,980
6.Balance at the end of the period of cash
and cash equivalents 1,386,950,960 570,677,197 966,236,674 629,398,808
Legal representative: Sun Liqiang Person in charge of accounting: Leng Bin
Person in charge of accounting organ: Jian Jianxun
4.4 Audit Report
Not audited
Yantai Changyu Wine Poineer Co., Ltd.
Board of Directors
22nd Oct. 2009
