YANTAI CHANGYU PIONEER WINE COMPANY
LIMITED
The 1st Quarter Report of 2010
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, supervisors or senior managers have any dissidence.
1.3 All directors attended the Board of Directors’ meeting to deliberate this
report.
1.4 The 1st quarter report of 2010 has not been audited.
1.5 The chairman of the Board of Directors Mr. Sun Liqiang, the chief
accountant Mr. Leng Bin and the chief of accounting department Mr. Jiang
Jianxun assure the truth and integrity of the financial and accounting
statement in this report.2. THE BASIC INFORMATION OF THE COMPANY
2.1 Main accountant data and Financial index
Unit: CNY
At the end of the
report period
at the end of last
year
More or less
(%)
Total assets 5,370,843,611.00 5,364,160,798.00 0.12%
Owner’s equity attributed to
shareholders of listing company 3,416,361,497.00 3,038,226,013.00 12.45%
Share capital (share) 527,280,000.00 527,280,000.00 0.00%
Net asset per share attributed to
shareholders of listing company 6.48 5.76 12.50%
During the
report period
1st quarter of
last year
More or less
(%)
Total operation revenue 1,585,142,100.00 1,257,455,017.00 26.06%
Net profit attributed to
shareholders of listing company 378,135,484.00 298,501,978.00 26.68%
Net cash flow from operating
activities 458,426,123.00 465,241,338.00 -1.46%
Net cash flow per share from
operating activities 0.87 0.88 -1.14%
Basic earnings per Share 0.72 0.57 26.32%
Diluted earnings per Share 0.72 0.57 26.32%
Weighted average rate of net assets
return 11.72% 10.50% 1.22%
Weighted average rate of net assets
return after deducting irregualr
profit and loss
11.72% 10.49% 1.23%
Item for irregular profit and losss
Unit: CNY
Item for irregular profit and losss From Jan. 1st 2010 to end of
report period
Except the hedging business related to normal
operation of the Company, the profit and loss on
fair value from holding trading financial assets and
liabilities, proceeds from disposition of trading
financial assets and liabilities, and salable financial
assets
115,438.00
profit and loss from other non-business activities -83,755.00
Effect index for the income tax -7,921.00
effect index for minority shareholders’ equity -33,509.00
Total -9,747.00
Information on important item of irregular profit and loss
No2.2 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 14688
The top 10 shareholders with unlimited shares
Name of Shareholders Number of
unlimited shares
Type of
shares
YANTAI CHANGYU GROUP CO.,LTD. 52,728,000 A shares
HTHK/CMG FSGUFP-CMG FIRST STATE CHINA
GROWTH FD
22,236,013 B shares
GAO-LING FUND, L.P. 13,719,554 B shares
BBH BOS S/A FIDELITY FD-CHINA FOCUS FD 7,399,747 B shares
TAIKANG LIFE INSURANCE CO. LTD.
DIVIDEND-PERSONAL DIVIDEND-
019-FH002 SHEN
4,622,067
A shares
GOVERNMENT OF SINGAPORE INV. CORP. –A/C “C” 4,511,863 B shares
UBS (LUXEMBOURG) S.A 4,320,530 B shares
MIRAE ASSET CHINA SOLOMON EQUITY
INVESTMENT TRUST 1
4,011,188
B shares
GF STRATEGIC SELECTIVE MIXED SECURITIES
–ORIENTED CAPITAL FUND
3,811,150
A shares
CHINA UNIVERSAL GROWTH FOCUS
SECURITIES-ORIENTED
CAPITAL FUND
3,608,479
A shares
3. MAJOR ISSUES
3.1 The great change and reasons on main accountant data and
financial Index
(√ ) not applicable
3.2 Analysis and explanation on the situation, impact and solution of
other major issues
( √ ) not applicable
3.3 The execution of promised issues by the company, shareholders
and actual controller
( √ )applicable
Promisted issue Promisee Promised content Execution
Promise for
capital reform
- - -
Promise for
limited
transaction
of shares
- - -
Promise in - - -acquisition
report or equity
change report
Promise for
significant
assets reform
- - -
Promise on
shares issuing
- - -
Other promises
including
additional
promises
Yantai
Changyu
Group
Co., Ltd.
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.
The
promise
has not
been
executed
since the
preconditi
on does
not come.
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.
( √ ) not applicable
3.5 Other major issues
3.5.1 Securities investment
( √ ) 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
1 - - - 0.00 0 0.00 0.00 0.00
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
- - - - 115,438.00
Total 0.00 - 0.00 100 115,438.00
Information on securities investment
During report period, the Company gained the yield of CNY115,438 from selling the alloted
IPO shares.
3.5.2 The Company’s Receptions, Studies and Visits during report
periodReception date Reception place Reception way Visitor Main topic and
material
provided
Jan.5, 2010 Meeting room
of the Company
Field survey USA Capital
International
Research Co.
Principal
operation,
future
development
Jan.26, 2010 Meeting room
of the Company
Field survey Orient securites Principal
operation,
future
development
Jan.26, 2010 Meeting room
of the Company
Field survey Everbright
securities
Principal
operation,
future
development
Jan.26, 2010 Meeting room
of the Company
Field survey Zheshang
securities
Principal
operation,
future
development
March 7, 2010 Meeting room
of the Company
Field survey HSBC Jintrust
Fund
Principal
operation,
future
development
March 13,2010 Meeting room
of the Company
Field survey Zongcai
Investment
Principal
operation,
future
development
March 18,2010 Meeting room
of the Company
Field survey Rosefinch
Investment
Principal
operation,
future
development
3.5.3. Information on other important issue
( √ ) applicable
During report period, the Company signed “Shares Subscription Agreement” with
Evergrowing Bank Co., Ltd. to subscribe 340million shares through capital increase of
Evergrowing Bank in cash, CNY3 per share, totally CNY1.02 billion the Company needs should
be at the Company’s own funds.The shares the Company subscribes will account for 5% of
6.8 billion total shares of Evergrowing Bank.
3.6 Investment on financial derivatives
( √ ) not applicable
3.6.1 Investment on financial derivatives at end of report period
( √ ) not applicable
4. appendix
4.1 Balance sheetBalance Sheet (1)
Yantai Changyu Wine Poineer Co., Ltd. Unit: CNY
At 31 March 2010 At 31 December 2009
Assets Note
Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company
amount
Current assets：
Monetary fund 2,722,003,197 1,908,725,342 2,545,210,286 1,701,195,926
Financial assets for trade
Notes receivable 62,665,033 17,214,908 38,107,831 12,294,221
Account receivable 65,149,130 6,658,993 98,022,443 13,163,722
Advance money 41,438,426 30,156,666 31,885,027 19,918,724
Interest receivalbe 4,787,139 4,787,139 8,969,343 8,969,343
Dividend receivable 447,429,274
Other account receivable 27,167,747 660,085,662 22,424,303 633,416,634
Inventories 949,146,425 446,097,913 1,131,240,892 467,402,171
Non-current assets due
within one year
Other current assets 827,938 1,104,453
Total current assets 3,873,185,035 3,073,726,623 3,876,964,578 3,303,790,015
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 10,000,000 229,077,178
Real estate for investment
fixed assets 984,627,925 321,211,560 996,792,865 331,281,278
Construction in progress 156,473,565 5,996,727 109,372,318 2,234,216
Project material 395,114
Liquidation of fixed assets
Biological assets for
production
39,822,921 11,444,646 39,717,396 11,444,646
Oil and gas assets
Intangible assets 152,181,302 95,697,626 147,509,555 90,579,308
Development expenditure
Goodwill
Long-term deferred
expenses
48,802,494 38,956,022
Assets of deferred income 100,655,123 25,925,697 139,267,274 26,315,465tax
Other non-current assets 4,700,132 4,806,317 5,580,790 5,544,630
Total non-current
assets
1,497,658,576 694,159,751 1,487,196,220 696,476,721
Total assets 5,370,843,611 3,767,886,374 5,364,160,798 4,000,266,736
Legal representative: Sunliqiang Person in charge of accounting :Lengbin Person in charge of
accounting organ:Jiangjianxun
Balance Sheet (2)
Yantai Changyu Wine Poineer Co. Ltd. Unit:CNY
At 31 March 2010 At 31 December 2009
Liabilites, rights and
interests of shareholders Note
Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company
amount
Current liabilities:
Short-term loan 4,500,000 224,500,000 220,000,000
Financial liabilities for
trade
Notes payable
Accounts payable 327,740,731 226,541,131 343,079,052 232,881,603
Advance money 404,537,272 371,221,002
Wage payable 115,871,205 105,670,512 176,980,999 112,116,156
Tax payable 431,647,865 91,036,054 556,959,447 115,867,141
Interest payable 605,030 605,030
dividend payable
Other accounts payable 494,374,973 229,569,407 477,048,092 219,943,753
Non-current liabilities
due within one year
Other current liabilities
Total current
liabilities
1,778,672,046 652,817,103 2,150,393,622 901,413,683
Non-current liabilities：
Long-term loan 10,500,000 10,500,000
Bond payableLong-term accounts payable
Special accounts payable
Estimated liabilities
Liabilities of deferred
income tax
5,336,115 5,336,115
Oterh non-current liabilities 23,250,000 13,350,000 23,250,000 13,350,000
Total non-current liabilities 39,086,115 13,350,000 39,086,115 13,350,000
Total liabilities 1,817,758,161 666,167,103 2,189,479,737 914,763,683
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
2,035,916,413 1,721,274,186 1,657,780,929
1,705,057,9
69
Total shareholder rights and
interests of parent company
3,416,361,497 3,101,719,270 3,038,226,013
3,085,503,0
53
Minority shareholder rights
and interests
136,723,953 136,455,048
Total shareholder rights
and interests
3,553,085,450 3,101,719,270 3,174,681,061
3,085,503,0
53
Liabilites and total
shareholders rights and
interests
5,370,843,611 3,767,886,374 5,364,160,798
4,000,266,7
36
Legal representative: Sunliqiang Person in charge of accounting :Lengbin Person in
charge of accounting organ:Jiangjianxun4.2 Profit Statement
Yantai Changyu Wine Poineer Co., Ltd. Unit:CNY
Three months ended 31
March 2010
Three months ended 31
March 2009
Item Note
Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company
amount
Business income 1,585,142,100 443,805,685 1,257,455,017 216,025,080
Less: business cost 467,527,845 314,718,833 374,685,634 166,437,027
Business tax and associate
charges
88,409,828 54,082,439 63,253,395 28,779,095
Sales expenses 455,911,840 362,400,303
Management expenses 75,365,609 56,615,200 72,852,026 30,607,120
Financial expenses -3,532,633 -4,103,625 -10,362,784 -10,302,755
Assets depreciation loss
Add: fair value charge profit (loss is
listed with "-")
Investment profit ((loss is listed
with "-")
115,438 115,438 18,907,271
Including: investment profit for
joint-run business and joint venture
Operating profit 501,575,048 22,608,276 394,626,443 19,411,863
Add: Non-operating income 467,342 173,512 616,227 500,800
less: non-operating expenditures 551,097 3 19,060 13,930
Including: non-current assets
disposing loss
Total profit 501,491,293 22,781,785 395,223,610 19,898,733
Less: income tax expenses 123,086,904 6,565,568 96,134,211 186,050
Net profit 378,404,389 16,216,217 299,089,399 19,712,683
Net profit of parent company's
owners
378,135,484 16,216,217 298,501,978 19,712,683
Minority shareholder profit and loss 268,905 587,421
EPS
Basic EPS 0.72 0.57
Diluted EPS 0.72 0.57
Other Comprehensive Income
Comprehensive Income 378,404,389 16,216,217 299,089,399 19,712,683
Comprehensive Income of parent
company
378,135,484 16,216,217 298,501,978 19,712,683
Comprehensive Income of minority
shareholders
268,905 587,421
Legal representative: Sunliqiang Person in charge of accounting :Lengbin Person in
charge of accounting organ:Jiangjianxun4.3 Cash Flow Statement
Yantai Changyu Wine Poineer Co., Ltd.
Unit: CNY
Three months ended 31
March 2010
Three months ended 31
March 2009
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 1,906,248,637 520,836,693 1,522,433,676 296,665,429
Tax refund received
Other cash received related to operating
activities 13,050,779 5,264,302 24,224,574 422,108,999
Subtotal of cash flows of operating
activities 1,919,299,416 526,100,995 1,546,658,250 718,774,427
Cash paid for goods and services 463,103,834 352,542,782 387,281,963 267,506,303
Cash paid to and on behalf of employees 94,482,198 42,476,296 79,278,018 31,241,061
Cash paid for taxes and expenses 533,462,570 109,405,490 396,193,072 61,817,936
Other cash paid related to operating
activities 369,824,691 40,665,101 218,663,859 10,539,639
Sub-total of cash outflows of operating
activities 1,460,873,293 545,089,669 1,081,416,911 371,104,938
Net cash flow from operating activities 458,426,123 -18,988,674 465,241,339 347,669,490
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term of over 3
months 112,671,943 107,671,943 156,419,840 139,419,840
Cash received from obtaining investment
profit 115,438 447,544,712 18,907,271
Cash received from interest income 1,417,169 1,417,169 6,623,722 6,571,972
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 114,204,550 556,633,824 163,043,562 164,899,083
Cash paid to acquire fixed assets,
intangible assets and other long-term assets 60,585,222 671,260 67,931,426 4,615,345
Fixed deposit with the term of over 3
monthsCash for investment
Net cash paid to acquire branch and other
business unit
Other cash paid related to investment
activities
Subtotal of cash outflows of investment
activities 60,585,222 671,260 67,931,426 4,615,345
Net cash flow from investing activites 53,619,328 555,962,564 95,112,136 160,283,738
3.Cash flow from financing activites
Cash received from acquiring investment
Including: cash received from acquiring
minority shareholders investment by branch
Cash received from acquiring loans
Other cash received related to finaning
activities
Subtotal cash flows of financing
activities
Cash paid to pay debts 220,000,000 220,000,000
Cash paid to distribute dividend, profit or
pay interest 2,586,916 1,778,850
Including: dividend and profit paid to
minority shareholders by branch
Other cash paid related to financing
activities
Subtotal of cash outflows of financing
activities 222,586,916 221,778,850
Net cash flow from financing activites -222,586,916 -221,778,850
4. Influences of exchange rate
fluctuation on cash and cash equivalents
5. Net Increase in cash and cash
equivalents 289,458,535 315,195,040 560,353,475 507,953,227
Add: balance at the beginning of the
period of cash and cash equivalents 1,998,681,278 1,159,666,918 792,724,722 265,694,858
6.Balance at the end of the period of
cash and cash equivalents 2,288,139,813 1,474,861,958 1,353,078,197 773,648,085
Legal representative: Sunliqiang Person in charge of accounting :Lengbin
Person in charge of accounting organ:JiangjianxunComplementary Information for Cash Flow Statement
Three months ended 31
March 2010
Three months ended 31
March 2009
Complementary information Cosolidated
amount
Parent
company
amount
Cosolidated
amount
Parent
company
amount
1.Cash flow to adjust net profit to
operating activites
Net profit 378,135,484 16,216,217 298,501,978 19,712,683
minority shareholders loss and profit 268,905 587,421
Add: assets depreciation provision
Depreciation of fixed assets, oil and gas
assets, and biological assets for production 16,280,645 7,180,899 12,535,205 8,078,542
Intangible assets amortization 1,387,841 767,269 957,965 971,756
Long-term deferred expenses
amortization 146,864
Losses on disposal of fixed assets,
intangible assets and other long-term assets
(profits are listed with "-")
Loss on retirement of fixed assets (profits
are listed with "-")
Fair value change losses (profits are
listed with "-")
Financial expenses (profits are listed with
"-") -1,417,169 -1,417,169 -6,623,722 -6,571,972
Investment losses (profits are listed with
"-") -115,438 -115,438 -18,907,271
Reduction of deferred income tax assets
(increasing is listed with "-") 38,612,151 389,768 26,199,212 358,311
Increasing of deferred income tax
liabilities (reduction is list with "-")
Decrease of inventories (increasing is
listed with "-") 182,094,467 21,304,258 188,397,312 17,672,946
Reduction of operating receivables
(increasing is listed with "-") -5,704,217 -35,322,928 -43,258,559 349,307,980
Increasing of operating receivables
(reduction is listed with "-") -151,116,546 -27,991,550 -12,202,338 -22,953,486
Miscellaneous
Net cash flow from operating activites 458,426,123 -18,988,674 465,241,339 347,669,490
2.Investment and financing activites
uninvolved cash income and expenses
Liabilities change into capitalConvertible bond with the term of 1
year
Financing lease-in fixed assets
3.Net change of cash and cash equivalents
Balance at the end of the period of cash 2,288,139,813 1,474,861,958 1,353,078,197 773,648,085
Less: balance at the beginning of the
period of cash 1,998,681,278 1,159,666,918 792,724,722 265,694,858
Add: balance at the end of the period of
cash equivalents
Less: balance at the beginning of the
period of cash equivalents
Net increase amount of cash and cash
equivalent 289,458,535 315,195,040 560,353,475 507,953,227
Legal representative: Sunliqiang Person in charge of accounting :Lengbin
Person in charge of accounting organ:Jiangjianxun
4.4 Audit Report
Not audited
Yantai Changyu Wine Poineer Co., Ltd.
Board of Director
April 26, 2010
