Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Yantai Changyu Pioneer Wine Co. Ltd.
2013 Semi-annual Report
2013-Ding Quan 03
August 2013
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Contents
I、Important Notice, Contents and Definition ...............................................................................3
II、Brief Introduction for the Company .......................................................................................5
III、Summary of Accounting Datas and Financial Indicators ....................................................7
IV、Board of Directors’ Report .....................................................................................................9
V、Major Issues .............................................................................................................................20
VI、Changes in Shares and the Shareholders’ Situation ...........................................................28
VII、Situation for Directors, Supervisors, Senior Management ..............................................31
VIII、Financial Report .................................................................................................................33
IX、Reference Documents ............................................................................................................136
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
I. Important Notice, Contents and Definition
The Board of Directors ， the Board of Supervisors ， directors, supervisors & senior
management of the Company collectively and individually accept full responsibility for the
truthfulness，accuracy and completeness of the information contained in this report and
confirm that to the best of their knowledge and belief there are no unfaithful facts, significant
omissions or misleading statements.
No director, supervisor or senior manager declares to have dissidence for the semi-annual
report.
All directors have personally attended the Board of Directors’ meeting for the semi-annual
report.
The Company has no plan to distribute cash dividends and bonus; capital reserve will not be
transferred to equity.
Mr. Sun Liqiang (Chairman of the Company), Mr. Leng Bin (Chief Financial Officer) and Mr.
Jiang Jianxun (Financial Manager) assure the truthfulness, accuracy and completeness of the
financial report in the semi-annual report.
This report is worked out in bilingual version in two sets: Chinese and English, in case of
understanding discrepancy, the original version in Chinese shall prevail.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Definition
Definition Item Refers to Definition Content
Company/The Company Refers to Yantai Changyu Pioneer Wine Co. Ltd.
Changyu Group/Controlling Refers to
Yantai Changyu Group Co. Ltd.
shareholder
CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
CNY Refers to Chinese Yuan
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
II、BriefIntroductionfortheCompany
1. Company’s information
Abbreviation of the Shares: Changyu A、Changyu B Code number of the Shares 000869、200869
Abbreviation of the Shares
-
after alteration (if have)
Place of listing of the Shares Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese name 张裕
Legal Name in English YANTAI CHANGYU PIONEER WINE COMPANY LIMITED
Abbreviation of English name CHANGYU
Legal Representative Mr. Sun Liqiang
2. Contact person and information
Secretary to the Board of Authorized Representative of the
Directors Securities Affairs
Name Mr. Qu Weimin Mr. Li Tingguo
Address 56 Dama Road, Yantai, Shandong, China 56 Dama Road, Yantai, Shandong, China
Tel 0086-535-6633658 0086-535-6633656
Fax 0086-535-6633639 0086-535-6633639
E-mail quwm@changyu.com.cn stock@changyu.com.cn
3. Other information
1)、The Company’s contact information
Whether there is any change for the Company’s registered address, office address, post code,
website and e-mail address during the report period.
□Available V Not available
There is no any change for the Company’s office address, post code, website and e-mail address
during the report period, please see 2012 annual report for more details.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
2)、Information disclosure and filing Location
Whether there is any change for the information disclosure and filling location during the report
period.
□Available V Not available
There is no any change for the newspapers in which the Company’s information is disclosed,
website assigned by CSRC to carry the semi-annual report and the filing location during the report
period, please see 2012 annual report for more details.
3)、Registration changes
Whether there is any change for the registration during the report period.
□Available V Not available
There is no any change for the company’s registration date & place, business License No., tax
registration No. and organization code during the report period, please see 2012 annual report for
more details.
4)、Other documents
Whether there is any change for the other documents during the report period.
□Available V Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
III、 SummaryofAccountingDatasandFinancialIndicators
1. Key accounting data and financial indicators
Whether the Company makes retroactive adjustments or restates the accounting data of previous
fiscal years because of changes of accounting policy and/or accounting errors.
□Yes V No
More or less than
In the same period of last
Item In the report period the same period of last
year
year(%)
Business revenue (CNY) 2,539,378,234 3,012,584,089 -15.71%
Net profit attributed to the shareholders of
740,574,221 921,143,478 -19.60%
the listed company (CNY)
Net profit attributed to the shareholders of
the listed company after deducting the 736,714,423 916,058,717 -19.58%
irregular profit and loss (CNY)
Net cash flows from the operating
409,158,489 584,471,340 -30.00%
activities (CNY)
Basic earnings (CNY) per share 1.08 1.34 -19.40%
Diluted earnings (CNY) per share 1.08 1.34 -19.40%
Return on net assets (%) 11.79% 16.83% -5.04%
At the end of the report More or less than
At the end of last year
period the end of last year
Total assets (CNY) 8,249,719,263 8,123,134,580 1.56%
Net Assets attributed to the shareholders of
6,653,678,399 5,913,104,178 12.52%
the listed company (CNY)
2. Accounting datas difference between domestic and foreign accounting standards
1)、Difference in net profit and net asset disclosed in the financial report under the PRC accounting
standards and international accounting standards.
Unit: CNY
Net profit attributed to the shareholders of the Net asset attributed to the shareholders of the
listed company listed company
Amount at the
Amount in the report Amount at the end of
Amount in the last period beginning of the report
period the report period
period
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Under PRC accounting
740,574,221 921,143,478 6,653,678,399 5,913,104,178
standards
Item and amount adjusted according to the international accounting standards
Under international
740,574,221 921,143,478 6,653,678,399 5,913,104,178
accounting standards
2)、Difference explanation for the accounting datas between PRC accounting standards and foreign
accounting standards.
There is no difference for the accounting datas under PRC accounting standards and international
accounting standards.
3. Details of irregular profit and loss
Unit: CNY
Item Amount Explaination
Gain on disposal of non-current assets, including the reversal of
-390,591 -
accrued impairment provision
Tax refund or exemption that is either non-recurring or without
0 -
proper approval
Government grants credited in profit and loss (except for those
recurring government grants that are closely related to the entity's
4,388,393 -
operation, in line with related regulations and have proper basis of
calculation)
Other non-operating expense and income 538,273 -
Less: Income tax effect 676,277 -
Total 3,859,798 -
The reasons shall be made clear and definitely as to the non-recurring profit and loss that the Company
has defined by virtue of the Explanatory Announcement on Public Company’s Information Disclosure
No.1 - Non-recurring Profit and Loss and as to regarding the non-recurring profit and loss as recurrent
profit and loss as specified in the Explanatory Announcement on Public Company’s Information
Disclosure No.1 - Non-recurring Profit and Loss.
□Available V Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
IV、 BoardofDirectors’Report
1. Summarization
During the report period, the cumulative effects of slowdown of domestic economic growth and
overwhelming flow of foreign wine into the Chinese market in the previous years as well as the worse
competition in the domestic wine sector brought about strong pressure on the Company’s products
distribution. Facing quite a lot of external disadvantages, the Company consistently aimed at the market,
greatly promoted management innovation, timely adjusted the marketing tactics, perfected the
marketing channels and optimized the product structure so that the Company’s operating result didn’t
fluctuate obviously.
2. Analysis to main business
1)、 Summarization
During the report period, the Company realized operating income CNY2,539.38 million, decreased
15.71% comparing with the same period of last year, in which the sales revenue of wine is
CNY1945.8 million, decreased 19.9% comparing with the same period of last year, the sales
revenue of brandy is CNY490.04 million, increased 0.98% comparing with the same period of last
year, the sales revenue of sparkling wine is CNY 20.16 million, increased 4.64% comparing with
the same period of last year.
2)、Period comparison of main financial datas
Unit: CNY
In the same period of last
In the report period More or less (%) Reason for changes
year
Operating revenue The decrease of sales
revenue for the high-end
2,539,378,234 3,012,584,089 -15.71%
wine, comparing with the
same period of last year.
Operating cost The changes of sales
products structure, the
proportion of high-end
products declining, the
759,692,089 727,833,473 4.38%
proportion of low grade
products increasing, the
price of raw material
increasing
Sales expense According to the market
584,280,630 821,144,459 -28.85%
situation, appropriately
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
compressing marketing
investment
Management expense The declining of staff’s
salary, office expense and
104,896,929 109,340,306 -4.06% repairing expense,
comparing with the same
period of last year
Interest income declining
due to the decreasing of
Financial expense -13,607,053 -16,206,681 16.04% bank deposits, comparing
with the same period of
last year
Decreasing of net profit,
Income tax expense 244,475,516 306,145,488 -20.14% comparing with the same
period of last year
Increasing of expenditure
of R&D investment,
R&D investment 5,342,521 4,862,412 9.87%
comparing with the same
period of last year
Net amount of cash flow Decreasing of
distribution products,
generated in operating
cash received from labor
409,158,489 584,471,340 -30%
activities service, comparing with
the same period of last
year.
Net amount of cash flow Mainly the big growth of
fixed deposit over 3
generated in investment
-502,430,760 50,588,602 -1,093.17% months, comparing with
activities the same period of last
year
Net amount of cash flow Mainly because of the
implementation of profit
generated in 0 -801,465,600 100%
distribution at the same
capital-raising activities period of last year, but
there are no profit
Cash and cash distribution in the report
-93,272,271 -166,405,658 43.95%
equivalents period.
3)、 Whether there is any great change for the Company’s profit structure or profit source during the
report period
□Available V Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
During the report there is no great change for the Company’s profit structure or profit source.
4)、 Whether there is any future development and planning disclosed in the public Company’s shares
prospectus, collecting prospectus and asset restructing report during the report period.
□Available V Not available
The Company does not disclose any future development and planning in the public Company’s
shares prospectus, collecting prospectus and asset restructing report during the report period.
5)、 The company has reviewed the progress of its disclosed operation plan during the report period
During the report period, the Company mainly fulfilled the following tasks:
Firstly, further perfected the marketing system, duly adjusted the product structure and did its best to
promote overall development of all sorts of wine. Facing the constantly changing market environments,
the Company, while adjusting and perfecting the existing traditional distribution channels in hotels,
supermarkets and so on, made great efforts in developing new marketing systems such as e-business,
group purchase outlets and Changyu Pioneer Chateau franchised stores in order to tap new market
growth points, which made the Company’s marketing network further bettered. To adapt itself to
market changes, the Company properly reduced the product quantity and paid more attention to the
sales of ordinary dry red wine, brandy and imported wine, which generated a satisfactory result. The
Company made all necessary preparations for launch of the products from three western chateaus, tried
to offer the products to consumers in this year and to form a considerable market size.
Secondly, further lowered production cost and marketing expense by mean of internal control and
marketing innovation. The Company strengthened management and control of bulk, packings, salaries,
fuel and power expense, production loss, capital use expense, adverting expense, warehousing expense,
transport expense, etc., actualized the centralized purchase of raw materials and packing materials in
the whole Company, further simplified product packing, did all it can to save energy and lower
consumption, which effectively reduced the production costs for part of products and avoid the great
growth of total production costs. The Company further optimized the advertising channels and time
points, amended the advertisement contents, increased the capital efficiency and reduced the
advertising expense, which produced better marketing effect.
Thirdly, ensured steady progress of investment projects, optimized the production structure, enlarged
production capacity and upgraded management level. In the light of 2013 capital expenditure plan, the
Company made a good mastery of the progress of all investment projects according to the schedule and
curbed the input within the scope of the budget, accelerated the progress of SAP Project and tried to
complete the first-phase engineering of it in this year in order to improve the Company’s management
level and control ability by means of modern information technology.
Fourthly, standardized the vineyard management, continuously improved grape quality and reduced the
cost of raw materials. The Company carried out a work of winemakers’ followup and management of
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
vineyards and ensured the winemakers to control and track quality during the whole course from grapes
to bulk, which guaranteed continuous improvement of product quality. The Company took the lead in
Yantai in mechanized farming in its self-run chateau-owned vineyards, supported, encouraged and
asked the contract-based vineyards to implement and popularize the mechanized farming in order to
further lower grape-planting cost, improve grape quality and increase planting earnings.
3. Structure of main businesses
Unit: CNY
Increase or Increase or
Increase or
decrease of decrease of
decrease of gross
Operating operating revenue operating cost
Operating cost Gross profit (%) profit over the
revenue over the same over the same
same period of last
period of last year period of last year
year
(%) (%)
Sector
Wine and alcoholic
2,534,398,427 757,917,093 70.09% -15.56% 4.99% -5.86%
beverages
Product
Wine 1,945,801,619 529,717,257 72.78% -19.9% 3.86% -6.23%
Brandy 490,043,845 169,002,377 65.51% 0.98% -4.43% 1.95%
Sparkling wine 20,164,376 12,640,620 37.31% 4.64% 38.97% -15.49%
Other 78,388,587 46,556,839 40.61% 16.08% 79.5% -20.98%
Region
Eastern Region 2,159,560,900 637,711,442 70.47% -15.33% 7.01% -6.16%
Middle Region 254,707,042 83,143,505 67.36% -17.13% -2.23% -4.97%
Western Region 120,130,485 37,062,146 69.15% -16.27% -9.29% -2.37%
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
4. Analysis to core competitiveness
Compared with the participants in the arena of the Chinese wine sector, we believe that the Company is
provided with the following advantages:
Firstly, the Company has been enjoying a well-known wine brand since 120-odd years, both
“Changyu” and “Jiebaina” are Chinese famous trademarks that have strong influence and good
reputation.
Secondly, the Company has set up a nationwide marketing network, formed a “three-level” marketing
network system mainly composed of the Company’s salesmen and dealers, possessed the strong
marketing ability and market exploitation ability.
Thirdly, the Company has already had strong research strength and a product R&D system, owned a
one and only “State-level Wine R&D Center”, made mastery of advanced winemaking technology and
production processes, been powerful enough in product innovation and established a perfect quality
control system.
Fourthly, the Company is in possession of a lot of grape-growing bases to meet its future development,
having developed a great deal of vineyards in the most suitable areas for wine grape growing such as in
Shandong, Ningxia, Xinjiang, Liaoning, Hebei and Sha’anxi, whose scales and structures have
generally met the Company’s needs for development.
Fifthly, the Company has a great variety of products composed of all grades, its wine and brandy of
over 100 sorts can meet different consumers’ demands. The Company has taken the lead in the
domestic wine sector through rapid development in the past 10-odd years and has possessed
comparative superiority in the future competition.
All in all, the Company has built up a strong core competitive edge and obtained and maintained a
relatively dominant position in the long-term market competition.
5. Analysis to investments
1)、Equity investment
① Investment situation
Investment Situation
Investment amount during the report period Investment amount during the same period of last year
More or less (%)
（CNY’0000） (CNY’0000)
10,874 12,506 -13.05%
Invested company situation
The rights and interest
proportion of the listed
Company Name Main Business
company in the invested
company (%)
Yantai Changyu Tinlot Chateau Co. Ltd. Pre-packaged foods 100%
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
XinJiang Changyu Baron Balboa Chateau Co. Ltd. Production and distribution of wine (bulk wine) 100%
Production and distribution of wine, distilled spirits,
Ningxia Changyu Moser XV Chateau Co. Ltd. healthy liquor, non-alcohol beverage and the package 100%
material; travel and conference service, catering service.
Sha'anxi Changyu Reina Chateau Co. Ltd. Production of grape, processing of wine, tourism 100%
② Situation for holding equity of financial enterprises
During the report period, the company did not hold any equity of financial enterprises.
③ Situation for security investment
During the report period, there were no security investments happening previously and continuing
to the report period.
Explanation for holding the equity of other listed companies
□Available V Not available
2)、Trust management, derivatives investment and entrusted loans
During the report period, the Company did not have any trust management and entrusted loans, and
also did not make any derivatives investment.
3)、Use of raised capital
In the past three years, the Company did not raise capital through issuing stocks or bonds, also there
were no raised capital continuing to the report period. The Company made a public offering of 32
million A Shares for capital increase in October of 2000, and received net proceeds of CNY 613.46
million. By end of report period, the Company actually invested all proceeds in same projects as
disclosed in the Prospectus, and there was no any change on investment project. Except those
projects for improvement of intermediate procedures on production and sales which were difficult
to rationally confirm the benefit, other productive projects all made good benefits.
4)、Analysis to the major subsidiaries and joint stock companies
Information about the major subsidiaries and joint stock companies
Unit: CNY
Main
Company Company Registered Business Operating
Industry products or Total assets Net asset Net profit
name type capital revenue profit
services
Yantai To research, 265,332,762.18 81,907,859.24 56,611,692.80 3,959,857.14 2,963,905.44
Changyu- Wine and
produce and
Castel Wine alcoholic USD 5
Subsidiary sell wine
Chateau Co. beverages million
LTD. and
industry
sparkling
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
wine as well
as the
tourism
service
Langfang Wine and 63,016,566.89 47,559,878.20 34,874,644.95 973,619.52 733,473.85
Castel- To produce USD
Joint stock alcoholic
Changyu and sell
company beverages 6,108,818
Wine Co. wine
LTD. industry
Yantai Subsidiary To produce 68,885,442.55 49,263,990.01 40,252,431.22 4,215,064.24 3,161,324.47
Kylin
Packaging and sell CNY 15.41
Packaging
Co. LTD. industry packaging million
material
Chateau Subsidiary Wine and To research, 204,676,297.11 140,963,909.23 62,910,239.99 -11,483,340.06 -9,744,716.46
Changyu
alcoholic produce and CNY 110
AFIP
Global beverages sell brandy million
industry and wine
Chateau Subsidiary Wine and 79,779,956.32 37,883,419.23 21,122,957.28 -530,022.11 -227,376.21
Liaoning
alcoholic To produce CNY 26.30
Changyu
Ice Wine beverages ice wine million
Co., Ltd. industry
Xinjiang Subsidiary To plant 185,557,354.27 160,928,644.80 11,249,990.62 -1,242,484.02 -1,333,348.99
Tianzhu Wine and grape,
Winery Co., alcoholic produce and CNY 75
Ltd. sell grape
beverages million
juice, bulk
industry wine and
fruit wine
5)、Important projects financed with non-raised capital
Unit: CNY’0000
Actual
Total Investment investment until Project
Project Name Project benefits
Investment in the year the end of the progress
report period
Construction of Tinlot Chateau 15,240 1,366 9,166 65% 0
Facilities have been
completed and put
Construction of Changyu Reina Chateau into production, a
31,074 5,366 30,866 97%
Sha'anxi small amount of
products have been
in test marketing.
Construction of Chateau Moser XV Facilities have been
24,415 1,697 24,697 97%
Ningxia completed and put
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
into production, a
small amount of
products have been
in test marketing.
Facilities have been
completed and put
Construction of Changyu Baron Balboa into production, a
23,343 2,445 26,435 97%
Chateau XinJiang small amount of
products have been
in test marketing.
Construction of Changyu International Wine
65,331 18,590 22,190 33% 0
City blending and cooling Center
Construction of Changyu International Wine
46,736 2,400 4,000 8% 0
City Bottling Center
Construction of Changyu International
12,095 1,445 2,545 20% 0
Wine City Logistics Center
Construction of Changyu Vine and
20,000 108 108 0.5% 0
Wine Research Institute
Construction of Treasure Wine Chateau 14,545 1,048 1,393 10% 0
Construction of Vineyards 9,140 2,429 3,337 35% 0
Investment in landscaping 5,000 403 403 8% 0
Construction of Koyac Brandy Chateau 16,530 987 987 6% 0
Procurement of Oak Barrels 5,000 0 0 0% 0
Construction of Changyu Laizhou Zhuqiao
6,550 3,251 3,251 50% 0
Vineyard
Total 294,999 41,535 129,378 -- --
Inquiry date in the designated website disclosed in the
19th April 2013
temporary announcement
Resolution announcement for 14th meeting of the 5th session board
Inquiry index in the designated website disclosed in the
of directors
temporary announcement
（http://www.cninfo.com.cn/finalpage/2013-04-19/62385216.PDF）
6. Forecast for the operation achievements from January to September of 2013
Caution and explanation for the prediction that the cumulative net profit from the beginning of the
year to the end of next report period could be in a loss or there will be in a great change comparing
with the same period of last year.
□Available V Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7. Explanation from the board of directors and the board of supervisors for the “Non-standard Audit
Report” issued by the accountant firm
The financial report of the semi-annual report is not audited by the accountant firm.
8. Explanation from the board of directors for the “Non-standard Audit Report” of last year
The financial report of last year’s annual report has been audited by Ernst & Young, and received a
standard and unqualified audit report.
9. Implementation of profit distribution during the report period
The implementation or adjustment for the profit distribution policies during the report period,
especially the cash dividend plan and the scheme of increasing equity with capital reserve.
V Available □Not available
On July 3, 2013, the Company disclosed the Announcement of Dividend Distribution for the year 2012,
according to which the Company would take the total capital stock 685,464,000 shares at that time as a
cardinal number to distribute CNY 11 in cash for per 10 shares to all stockholders (tax included. After
deduction of taxes, as to Stock A, QFII, RQFII as well as the individuals holding the restricted
reform-related shares and the restricted new shares and the investment fund holders would enjoy CNY
9.9 per 10 shares. The differential dividend tax rates would be adopted for the individuals holding the
non-restricted reform-related shares, the non-restricted new shares and the unlimited shares and the
investment fund holders, CNY 10.45 for per 10 shares in advance and afterwards depending on the
investors’ reduction of shares, making up the difference according to the actual shares held on the
equity registration day. As to the non-resident enterprises other than QFII and RQFII, the Company
would neither withhold nor pay the income tax on their behalf but the taxpayers should pay the tax in
the place where the income is received. As to Stock B, the non-resident enterprises would enjoy cash
dividend CNY 9.9 for per 10 shares. The differential dividend tax rates would be adopted for the inland
(overseas) individual stockholders, CNY 10.45 for per 10 shares in advance and afterwards depending
on the investors’ reduction of shares, making up the difference according to the actual shares held on
the equity registration day.)
The share registration day of A Stock was on July 10, 2013 and the ex-dividend day was on July 11,
2013.
The last trading day of B Stock was on July 10, 2013, the share registration day was on July 15, 2013
and the ex-dividend day was on July 11, 2013.
The cash dividend for Stock A holders that the company entrusted China Securities Depository and
Clearing Corporation Limited Shenzhen Company to distribute was directly transferred to their
accounts via securities service company (or other depository department) on July 11, 2013. The cash
dividend for Stock B holders was directly transferred to their accounts via securities service company
or other depository department on July 15, 2013. The cash dividend enjoyed by Yantai Changyu Group
17
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Co., Ltd. was directly paid by the Company at the same time.
10. Preliminary schemes of profit dividend and increasing equity with capital reserve during the report
period
Number of shares as stock dividends for every ten
0
shares (share)
Number in cash as dividends for every ten shares
0.00
(CNY) (including tax)
Number of increasing equity for every ten
0
shares(share)
Equity base of preliminary scheme (share) 685,464,000
Amount of cash dividend (CNY) (including tax) 0.00
Distributable profit (CNY) 0.00
Detailed explanations of preliminary schemes of profit dividend or increasing equity with capital reserve
Preliminary schemes of profit dividend and increasing equity with capital reserve in the first half-year of 2013: The Company plans
not to distribute cash dividend, not to send bonus and not to increase equity with capital reserve.
11. the Company’s Receptions, Studies and Visits
Type of Main discussed
Reception Reception
Reception time reception Reception object contents and the
place way
object information provided
current business
Meeting Luo Peng’ai from Yinhua fund management
operation
2013.01.16 room of the Field survey Institution Co., Ltd, Tang Zhi from Huatai securities Co.,
situation and
Company Ltd
other issues
current business
Meeting Lin Shanshan from CICC( Hongkong
operation
2013.01.17 room of the Field survey Institution Securities), Chen Xihua from First state
situation and
Company investment (Hong Kong) Co., LTD
other issues
current business
Meeting
operation
2013.01.18 room of the Field survey Institution Marshall Wace LLP Fehim Can Sever
situation and
Company
other issues
Zhang Yong from China Asset Management current business
Meeting
Co.,Ltd. Zhang Zhimin From Ping’an assets operation
2013.03.06 room of the Field survey Institution
management Co., Ltd. Sui Wei from Haitong situation and
Company
Securities Company Limited other issues
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Gu Quan and Sun Xiaoning from Singapore current business
Meeting
government investment consulting (Beijing) operation
2013.03.14 room of the Field survey Institution
Co., Ltd. Wu Xiaolin from Swiss Bank situation and
Company
Corporation. other issues
Li Xuan from CLSA Asia-Pacific Markets, Yu
Chunsheng，Morgan Stanley, Ding Jing from
Choi tong securities Co., Ltd. Zhang current business
Meeting
Yanzhen,Wen Hongwei from operation
2013.05.15 room of the Field survey Institution
CITIC Securities Co., Ltd, Zhu Quan from situation and
Company
Mingji international investment company, other issues
Tang Jianhua from Shenzhen yihengsheng
property management Co., Ltd.
19
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
V、MajorIssues
1. Corporate Governance Situation of the Company
The Company has according to relevant national laws and rules including the “Company Law of the
People’s Republic of China”, “Securities Law of the People’s Republic of China” , “Guidelines on
Corporate Governance of Listed Companies”, and also other laws and rules , constantly improved its
legal entity structure, legally conducted its activities. Currently, the Company’s corporate governance is
in compliance with the Company Law and the relevant provisions of China Securities Regulatory
Commission
2. Material litigation and arbitration
□ available √not available
There are no material litigation and arbitration during the report period.
3. Media’s doubts
□ available √not available
There are no common doubts issued by Media during the report period.
4. Bankruptcy reorganization
There are no related issues of bankruptcy reorganization happened during the report period and until
the report period.
5. Transaction in Assets
1)、Acquisition of assets
There is no acquisition of assets during the report period and until the report period.
2)、 Assets for sale
There are no assets for sale during the report period and until the report period.
3)、Business merger
There are no business merger happened in the report period and until the report period.
6. Implementations and influences of Company’s equity incentive
There are no implementations of Company’s equity incentive, and there are no previously
implementations of Company’s equity incentive until the report period.
20
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7. Important related transactions
1)、Related transactions in relation to routine operations
Market
Pricing Amount of Settlement price of
Content of Price of Proportion in the
Type of related principle of related method of securabl Date of
Related party Interrelationship related related same kind of Disclosure index
transaction related transaction related e same disclosure
transaction transaction transaction (%)
transaction (CNY ‘0000) transaction transacti
on
Yantai Changyu Tour Under the same Purchasing Purchasing On the base of Agreement 9.17 0.01% Cash — 2013.04.19 Jvlang Consult
commodities liquor products’ market price, price website(http://www.c
Company Parent Co. derivatives negotiated ninfo.com.cn/finalpag
pricing e/2013-04-19/623852
07.PDF)
Yantai Changyu Under the same Purchasing Purchasing On the base of Agreement 0.05 0% Cash — 2013.04.19
Window of Wine Parent Co. commodities liquor products’ market price, price
City Co. derivatives negotiated
pricing
Yantai Shenma Under the same Purchasing Purchasing On the base of Agreement 11,479.63 15.11% Cash — 2013.04.19
Packaging Co. Parent Co. commodities packing market price, price
materials negotiated
pricing
21
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Yantai Zhongya Under the same Purchasing Purchasing On the base of Agreement 568.52 0.75% Cash — 2013.04.19
Pharmaceutical Tonic Parent Co. commodities liquor products market price, price
Wine Co., Ltd. negotiated
pricing
Yantai Changyu Tour Under the same Selling Selling liquor On the base of Agreement 157.33 0.06% Cash — 2013.04.19
Company Parent Co. commodities products market price, price
negotiated
pricing
Yantai Changyu Under the same Selling Selling liquor On the base of Agreement 229.29 0.09% Cash — 2013.04.19
Window of Wine Parent Co. commodities products market price, price
City Co. negotiated
pricing
Yantai Zhongya Under the same Selling Selling liquor On the base of Agreement 72.58 0.03% Cash — 2013.04.19
Pharmaceutical Tonic Parent Co. commodities products market price, price
Wine Co., Ltd. negotiated
pricing
Yantai Changyu Parent Co. Leased assets Leasing storage On the base of Agreement 292.90 0.14% Cash — 2013.04.19
Group Co. Ltd. and housing market price, price
negotiated
22
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
pricing
Yantai Changyu Parent Co. Intangible assets Permission to On the base of Agreement 4,649.24 100% Cash — 2013.04.19
Group Co. Ltd. licensed use use the market price, price
trademark negotiated
pricing
Yantai Changyu Parent Co. Intangible assets Permission to On the base of Agreement 2.50 100% Cash — 2013.04.19
Group Co. Ltd. licensed use use patents market price, price
negotiated
pricing
Total 17,461.21 —
The details of the large sales returns No
The total amount of the transaction will be expected according to its No
category and its actual performance during the report period
The reasons of big differences between the transaction price and the market No
reference price
2)、 Related transactions in asset procurement and sale
There were no related transactions in asset procurement and sale during the report period.
3)、Important related transactions in joint external investment
There were no important related transactions in joint external investment during the report period.
4)、Record of related credits and liabilities
23
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Whether there is a record of non-operating related credits and liabilities.
□ Yes √ No
Balance at the
Amount occurred Balance at the
Type of credits and Use of non-operating beginning of the
Related party Interrelationship Cause of existence during this period end of the period
liabilities fund or not period (CNY
(CNY ‘0000) (CNY ‘0000)
‘0000)
Credits receivable to Selling liquor products No 31.12 -28.25 2.87
Yantai Changyu Tour Co. Under the same Parent Co.
related party
Yantai Changyu Window of Wine City Co. Under the same Parent Co. Credits receivable to Selling liquor products No 0 7.92 7.92
related party
Yantai Zhongya Pharmaceutical Tonic Wine Under the same Parent Co. Credits receivable to Providing service No. 182.04 81.24 263.28
Co., Ltd related party
Yantai Changyu Group Co. Ltd. Parent Co. Credits receivable to Leasing storage and housing No 0 245.40 245.40
related party
Yantai Shenma Packaging Co. Under the same Parent Co. Liabilities payable to Purchasing packing No 4,336.61 -1779.80 2556.81
related party materials
Yantai Zhongya Pharmaceutical Tonic Wine Under the same Parent Co. Liabilities payable to Purchasing liquor products No 797.22 73.49 870.71
Co., Ltd. related party
Yantai Changyu Group Co. Ltd. Parent Co. Liabilities payable to Permission to use trademark No 9,994.36 -5345.12 4649.24
related party and patents
Influence of the related credits and At the end of the period, The related credits account for 0.06% in the Company’s total assets and 0.2% in the Company’s operation revenue, the related liabilities
liabilities on the Company’s operating account for 0.98% in the Company’s total liabilities and 3.81% in the Company’s operation revenue, the related credits and liabilities produce a minor influence on the
results and financial condition. Company’s operating results and financial condition.
5)、Other important related transactions
There are no other important related transactions in the report period.
24
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
8. Major and important contracts and execution results
1)、Trusteeship, contract and leasehold issues
① Trusteeship situation
Trusteeship situation explanation
There are no trusteeships happened during the report period or previously happened until the report
period
Project in gains and losses for the Company to achieve more than 10% of the total profit in the
report period.
□ available √ not available
② Contract situation
Contract situation explanation
During the report period, the contract for the operation of the Company, please see the part of “ 1）
Subsidiary” in the 6. consolidation scope of consolidated financial statements which is in the
report’s financial report.
Project in gains and losses for the Company to achieve more than 10% of the total profit during the
report period.
□ available √ not available
③ Leasehold situation
On 1st January 2012, the Company renewed the “space lease agreement” with the controlling
shareholder Changyu Group, the Company leased the space with 57749.77 square meters located at
174 Shihuiyao Road, Zhifu District,Yantai City and the space with 3038 square meters located at 56
Dama Road, Zhifu District, Yantai City, which are all under the name of controlling shareholder.
The rent of the above spaces per year is CNY 5.858 million with a period of 5 years from 1st
January 2012 to 31st December 2016.
Project in gains and losses for the Company to achieve more than 10% of the total profit during the
report period.
□ available √ not available
2)、Guarantee situation
There are no guarantees to any organization and personnel before and during the report period.
The detailed explanation of assuming complex method’s guarantee
There is no assuming complex method’s guarantee.
3)、 Other important contracts
There are no other important contracts which need to be disclosed by the Company during the
report period.
4) Other substantial transaction
Other important transaction please sees in the notes to the financial statements of the report’s
financial report.
25
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
9. The commitments of the Company or shareholders of the Company holding more than 5%
during the report period or until the report period
Commit
Commitment Commitment
Commitments Commitment content ment Implementation
Party time
period
has been
Commitments at share reform - － 2006.03.11 3 years
fulfilled
Commitments made in acquisition
- - - -
report or equity changes report
Commitments at asset restructuring - - - -
According to "Trademark License Contract",
the Company will pay trademark royalty for
the "Changyu"products of Yantai Changyu
Commitments at the initial public Yantai Changyu In-process
Group Co., Ltd every year, Yantai Changyu 1997.05.18 Forever
offering or refinancing Group Co., Ltd performed
Group Co., Ltd will use trademark to
advertise Changyu trademarks and the
Contract products.
Yantai Changyu Has been
Intra-industry competition 1997.05.18 Forever
Group Co, Ltd performed
Commitments made to the minority
- - - -
shareholders of the Company
Commitment under timely
Yes
implementation or not
Specific reasons of not completing
the implementation and the next No
step
10. The appointment and dismissal of certified public accountants
Adopted by the deliberation of the 2012 Shareholders’ Meeting, the Company will appoint Deloitte
HuaYong certified public accountants CO., LTD (Special General Partnership) to audit the
Company’s 2013 financial report and the Company’s 2013 internal control.
11. Punishment and rectification
The Company and its directors, supervisors, senior managers, shareholders are not punished by
supervision department and claimed for rectification during the report period.
Explanation of rectification
□ available √ not available
26
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
12. Explanation for other significant matters
There are no other significant matters during the report period.
27
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
VI、ChangesinSharesandtheShareholders’Situation
1. Changes in shares
Amount before this change Change (+, -) Amount after this change
Transfer
Percentage Allot Distribut other capital Sub Percentage
Amount new e bonus others Amount
% to share total %
share share
capital
2、Unrestricted shares 685,464,000 100% 685,464,000 100%
(1)、A shares 453,460,800 66.15% 453,460,800 66.15%
(2)、B shares 232,003,200 33.85% 232,003,200 33.85%
3、Total shares 685,464,000 100% 685,464,000 100%
Cause of share change
□ available √ not available
Approval of stock change
□ available √ not available
Transfer of changed shares
□ available √ not available
The influence of stock change on the financial indicators such as basic earnings per share, diluted
earnings per share of the latest year and the latest period, net asset per share belonging to the
Company’s common stock holders, etc..
□available √not available
Other contents which the Company thinks necessarily or securities regulatory departments claim to
disclose.
□available √not available
Changes situation in the Company’s total shares, structure of shareholders, the Company’s assets
and liabilities
□available √not available
28
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
2. The number of shareholders of the Company and the shareholdings
Unit: share
Total shareholders in the report period 47,385, it consists of 36,242 with A shareholders and 11,143 with B shareholders
Shareholders holding more than 5%
Number Pledged or frozen
Shares held Changes
Character of Number of
Percenta until the
of during the
Name of Shareholders ge end of the restricte unrestricted Amou
shareholder report Share status
(%) report d shares
s nt
period period
shares
Domestic
non-state-o
YANTAI CHANGYU GROUP CO. LTD. 50.4% 345,473,856 0 345,473,856 - 0
wned legal
person
Foreign
GAOLING FUND,L.P. 3.53% 24,176,997 -102,734 24,176,997 0
shareholder
GOVERNMENT OF SINGAPORE INV. Foreign
2.68% 18,337,899 1,535,241 18,337,899 0
CORP.- A/C "C" shareholder
BBH BOS S/A FIDELITY FD - CHINA Foreign
2.35% 16,106,326 982,850 16,106,326 0
FOCUS FD shareholder
HTHK/CMG FSGUFP-CMG FIRST Foreign
2.11% 14,487,775 -9,243,369 14,487,775 0
STATE CHINA GROWTH FD shareholder
GSIC A/C MONETARY AUTHORITY OF Foreign
shareholder 0.87% 5,957,159 395,712 5,957,159 0
SINGAPORE
HTHK-MANULIFE CHINA VALUE Foreign
0.79% 5,408,635 867,870 5,408,635 0
FUND shareholder
BBH A/C VANGUARD EMERGING Foreign
0.73% 4,980,066 4,116,349 4,980,066 0
MARKETS STOCK INDEX FUND shareholder
Foreign
VALUE PARTNERS CLASSIC FUND 0.71% 4,847,339 -781,465 4,847,339 0
shareholder
Foreign
UBS (LUXEMBOURG) S.A. 0.58% 3,977,599 -1,025,400 3,977,599 0
shareholder
Strategic investors or legal result of the placement of No strategic investors or legal result of the placement of new shares to become a
new shares to become a top 10 shareholders top 10 shareholders.
Among the top 10 shareholders, Yantai Changyu Group Company Limited has no
The explanation for the associated relationship and
associated relationship or accordant action relationship with the other 9 listed
accordant action of the top 10 shareholders
shareholders, and the relationship among the other shareholders is unknown.
The top 10 shareholders with unrestricted shares
Name of Shareholders Number of Type of share
29
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
unrestricted
shares held until
Type of share Amount
the end of the
year
YANTAI CHANGYU GROUP CO., LTD. 345,473,856 A share 345,473,856
GAOLING FUND,L.P. 24,176,997 B share 24,176,997
GOVERNMENT OF SINGAPORE INV. CORP.- A/C "C" 18,337,899 B share 18,337,899
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 16,106,326 B share 16,106,326
HTHK/CMG FSGUFP-CMG FIRST STATE CHINA GROWTH FD 14,487,775 B share 14,487,775
GSIC A/C MONETARY AUTHORITY OF SINGAPORE 5,957,159 B share 5,957,159
HTHK-MANULIFE CHINA VALUE FUND 5,408,635 B share 5,408,635
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND 4,980,066 B share 4,980,066
VALUE PARTNERS CLASSIC FUND 4,847,339 B share 4,847,339
UBS (LUXEMBOURG) S.A. 3,977,599 B share 3,977,599
Among the top 10 shareholders with unrestricted
The explanation for the associated relationship and accordant action of the top 10 shares, Yantai Changyu Group Company Limited has
shareholders with unrestricted shares, the the associated relationship and accordant no associated relationship or accordant action
action between the top 10 shareholders with unrestricted shares and the top 10 relationship with the other 9 listed shareholders, and
shareholders the relationship among the other shareholders is
unknown.
Explanation for the shareholders who involved in financing activities and stock Shareholders holding more than 5% is not involved in
trading business financing activities and stock trading business.
Whether or not to be agreed to buy back trading by Company shareholders during the report period
□ Yes √ No
3. Controlling shareholder or changes of the actual controllers situation
Changes of the controlling shareholder during the report period
□ available √ not available
Changes of the actual controllers during the report period
□ available √ not available
30
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
VII、SituationforDirectors,Supervisors,SeniorManagement
1. Changes in shareholdings of directors, supervisors and senior management
□ available √ not available
There are no changes in shareholdings of directors, supervisors and senior management during the
report period, details see 2012 annual report
2. Dimission and dismissing of Company's directors, supervisors and senior management
Name Post Type Date Reason
Chairman to the Board of Re-appointment after the 5th
Sun Liqiang Appointment 2013.05.15
Directors session Board of Directors
Zhou Hongjiang Vice-chairman to the Re-appointment after the5th
Board of Directors and Appointment 2013.05.15
session Board of Directors
general manager
Leng Bin Director and vice-general Re-appointment after the 5th
manager Appointment 2013.05.15
session Board of Directors
Qu Weimin Director, Vice-general Re-appointment after the 5th
manager and Secretary to Appointment 2013.05.15
session Board of Directors
the Board of Directors
Chen Jizong Director Re-appointment after the 5th
Appointment 2013.05.15
session Board of Directors
Augusto Reina Director Re-appointment after the 5th
Appointment 2013.05.15
session Board of Directors
Aldino Marzorati Director Re-appointment after the 5th
Appointment 2013.05.15
session Board of Directors
Antonio Appignani Director Re-appointment after the 5th
Appointment 2013.05.15
session Board of Directors
Jean Paul Pinard Director Re-appointment after the 5th
Appointment 2013.05.15
session Board of Directors
Independent Director The term of Re-appointment arriving to the
Geng Zhaolin office has 2013.05.15 maximum time within the fixed
expired time
Independent Director Re-appointment after the 5th
Xiao Wei Appointment 2013.05.15
session Board of Directors
Independent Director The term of Re-appointment arriving to the
Wang Zhuquan office has 2013.05.15 maximum time within the fixed
expired time
31
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Independent Director Re-appointment after the 5th
Wang Shigang Appointment 2013.05.15
session Board of Directors
The term of
Chairman for the Board of Normal Retirement after the 4th
Fu Mingzhi appointment 2013.05.15
Supervisors session Board of Supervisors
has expired
Supervisor The term of
Normal Retirement after the 4th
Zhang Hongxia appointment 2013.05.15
session Board of Supervisors
has expired
Supervisor The term of
Work changes after the 4th session
Jiang Jinqiang appointment 2013.05.15
Board of Supervisors
has expired
Chairman for the Board of Re-election after the 4th session
Kong Qingkun Appointment 2013.05.15
Supervisors Board of Supervisors
Supervisor Re-election after the 4th session
Guo Ying Appointment 2013.05.15
Board of Supervisors
Supervisor Re-election after the 4th session
Zhang Lanlan Be elected 2013.05.15
Board of Supervisors
32
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
VIIIFinancialReport
1. Audit report
Whether the biannual report has been audited
□ Yes √ No
2. Financial statement
The unit in the statement of the financial annotations is RMB yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
Item Note Ending balance Beginning balance
Current assets
Cash and bank 7.1 2,227,183,337 2,227,470,828
Settlement provisions
Lending
Trading financial assets
Bills receivable 7.2 163,517,664 92,635,701
Trade receivables 7.4 119,197,728 135,217,384
Advances to suppliers 7.6 47,574,385 44,294,482
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Interest receivable 7.3 10,735,669 7,215,854
Dividends receivable
Other receivables 7.5 39,733,336 28,462,945
Buy-in/sell-out financial assets
Inventories 7.7 2,010,473,538 2,268,621,441
Non-current asset expire in a year
Other current assets
Total current assets 4,618,415,657 4,803,918,635
Non-current assets
33
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Note Ending balance Beginning balance
Offering loans and imprest
Available for sale financial assets
Held-to-maturity investment
Long-term receivables
Long-term equity investments 7.8 5,000,000 5,000,000
Investment real estate
Property, plant and equipment 7.9 1,844,993,698 1,823,983,721
Construction in progress 7.10 1,123,056,806 832,828,689
Construction materials
Fixed assets disposal
Biological assets 7.11 59,079,079 39,681,580
Oil and gas assets
Intangible assets 7.12 284,537,130 278,293,922
Development expenditure
Goodwill
Long-term prepaid expense 7.13 161,328,979 160,871,860
Deferred tax assets 7.14 125,339,736 150,376,138
Other non-current assets 7.16 27,965,178 28,180,035
Total non-current assets 3,631,300,606 3,319,215,945
Total assets 8,249,716,263 8,123,134,580
Current liabilities
Short-term loan
Borrowings from the Central Bank
Customer and interbank deposits
Borrowing funds
Trading of financial liabilities
Bills payable
Trade payables 7.17 252,896,316 324,881,168
Advances from customers 7.18 279,624,914 450,172,253
Sales/buyback financial assets
Payable handling fees and commission
Employee benefits 7.19 89,660,021 140,484,927
Taxes payable 7.20 169,196,578 444,084,576
34
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Note Ending balance Beginning balance
Interest payable
Dividends payable
Other payables 7.21 486,067,359 470,650,111
Dividend payable for reinsurance
Reserves for insurance contracts
Acting trading securities
Acting underwriting securities
Non-current liability expire in a year 7.22 95,102,268 150,945,000
Other current liabilities 7.23 7,572,480 8,090,382
Total current liabilities 1,380,119,936 1,989,308,417
Non-current liabilities
Long-term borrowings
Bonds payable
Long-term accounts payable
Special accounts payable
Estimated liabilities
Deferred tax liabilities 7.14 5,336,115 5,336,115
Other non-current liabilities 7.24 64,200,804 69,004,861
Total non-current liabilities 69,536,919 74,340,976
Total liabilities 1,449,656,855 2,063,649,393
Owner’s equity (or shareholders’ equity)
Paid-in capital (or capital stock) 7.25 685,464,000 685,464,000
Capital surplus 7.26 562,139,042 562,139,042
Minus: treasury stock
Special reserves
Surplus reserve 7.27 342,732,000 342,732,000
General risk preparation
Retained earnings 7.28 5,063,343,357 4,322,769,136
Converted difference in foreign currency statements
Total owner’s equity attributable to the parent company 6,653,678,399 5,913,104,178
Minority interests 146,381,009 146,381,009
Total owner’s equities (or shareholders’ equities) 6,800,059,408 6,059,485,187
Total liabilities and owner’s equities (or shareholders’ equities) 8,249,716,263 8,123,134,580
35
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
The legal representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
Item Note Ending balance Beginning balance
Current assets
Cash and bank 1,579,323,943 1,090,260,851
Trading financial assets
Bills receivable 83,577,151 1,450,000
Trade receivables 15.1 2,140,874 710,080
Advances to suppliers 40,333,813 26,131,908
Interest receivable 10,735,669 7,215,854
Dividends receivable 961,075,226 993,614,383
Other receivables 15.2 2,305,315,256 2,194,219,753
Inventories 783,203,823 893,442,758
Non-current asset expire in a year
Other current assets
Total current assets 5,765,705,755 5,207,045,587
Non-current assets
Available for sale financial assets
Held-to-maturity investment
Long-term receivables
Long-term equity investments 15.3 1,010,192,893 1,006,492,893
Investment real estate
Property, plant and equipment 360,604,567 354,789,743
Construction in progress 32,453,088 24,640,660
Construction materials
Fixed assets disposal
Biological assets 33,134,022 16,866,437
Oil and gas assets
Intangible assets 80,391,367 81,512,908
Development expenditure
Goodwill
36
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Note Ending balance Beginning balance
Long-term prepaid expense
Deferred tax assets 13,707,581 19,517,202
Other non-current assets 2,338,229 2,502,630
Total non-current assets 1,532,821,747 1,506,322,473
Total assets 7,298,527,502 6,713,368,060
Current liabilities
Short-term loan
Trading of financial liabilities
Bills payable
Trade payables 140,763,875 164,815,117
Advances from customers
Employee benefits 65,164,147 80,144,533
Taxes payable -13,525,325 17,995,089
Interest payable
Dividends payable
Other payables 2,060,170,314 1,432,464,297
Non-current liability expire in a year
Other current liabilities 1,821,114 1,856,337
Total current liabilities 2,254,394,125 1,697,275,373
Non-current liabilities
Long-term borrowings
Bonds payable
Long-term accounts payable
Special accounts payable
Estimated liabilities
Deferred tax liabilities
Other non-current liabilities 19,041,530 19,905,019
Total non-current liabilities 19,041,530 19,905,019
Total liabilities 2,273,435,655 1,717,180,392
Owner’s equity (or shareholders’ equity)
Paid-in capital (or capital stock) 685,464,000 685,464,000
Capital surplus 557,222,454 557,222,454
Minus: treasury stock
37
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Note Ending balance Beginning balance
Appropriative reserve
Surplus reserve 342,732,000 342,732,000
General risk preparation
Retained earnings 3,439,673,393 3,410,769,214
Converted difference in foreign currency statements
Total owner’s equities (or shareholders’ equities) 5,025,091,847 4,996,187,668
Total liabilities and owner’s equities (or shareholders’ equities) 7,298,527,502 6,713,368,060
The legal representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Revenue 2,539,378,234 3,012,584,089
Including: Operating income 7.29 2,539,378,234 3,012,584,089
Interest income
Earned premium
Handling fees and commission income
2. Total cost of sales 1,558,864,572 1,791,795,774
Including: Cost of sales 7.29 759,692,089 727,833,473
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of insurance contract reserve
fund withdrawal
Policy bonus payment
Amortized reinsurance expenditures
Taxes and surcharges 7.30 123,601,977 150,023,860
Selling expenses 7.31 584,280,630 821,144,459
Administrative expenses 7.32 104,896,929 109,340,306
Financial expenses 7.33 -13,607,053 -16,206,681
38
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Note Sum of current period Sum of prior period
Loss for impairment of assets 7.34 -339,642
Plus: fair value charge profit (loss is listed with
"-")
Investment profit (loss is listed with "-") 7.31
Including: investment profit for joint-run
business and joint venture
Exchange income (loss is listed with "-")
3. Operating profit (loss is listed with "-") 980,513,662 1,220,788,315
Plus: Non-operating income 7.35 5,675,494 8,833,562
Minus: Non-operating expenses 7.36 1,139,419 2,332,911
Including: losses on disposal of
392,956 2,049,999
non-current assets
4. Total profits (total loss is listed with "-") 985,049,737 1,227,288,966
Minus: Income taxes 7.37 244,475,516 306,145,488
5. Net profit (net loss is listed with "-") 740,574,221 921,143,478
Including: Realized net profit of the consolidated
party before consolidation
Attributable to equity holders of the company 740,574,221 921,143,478
Minority interests
6. Earnings per share -- --
(1) Basic earnings per share 7.38 1.08 1.34
(2) Diluted earnings per share 7.38 1.08 1.34
7. Other Comprehensive Income
8. Comprehensive Income 740,574,221 921,143,478
(1) Attributable to equity holders of the company 740,574,221 921,143,478
(2) Attributable to minority interests
The legal representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Revenue 15.4 715,083,136 771,858,410
Minus: Cost of sales 15.4 585,109,268 630,970,052
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Note Sum of current period Sum of prior period
Taxes and surcharges 61,432,785 71,505,753
Selling expenses
Administrative expenses 59,247,136 65,432,098
Financial expenses -13,193,582 -17,393,242
Loss for impairment of assets -339,642
Plus: fair value charge profit (loss is listed with "-")
Investment profit ((loss is listed with "-") 15.5 11,140,442 12,000,000
Including: investment profit for joint-run business and joint venture
2. Operating profit (loss is listed with "-") 33,627,971 33,683,390
Plus: Non-operating income 1,104,393 985,550
Minus: Non-operating expenses 86,189 2,075,335
Including: losses on disposal of non-current assets 2,480 2,040,174
3. Total profits (total loss is listed with "-") 34,646,175 32,593,605
Minus: Income tax 5,741,996 3,073,962
4. Net profit (net loss is listed with "-") 28,904,179 29,519,643
5. Earnings per share -- --
(1) Basic earnings per share 0.04 0.04
(2) Diluted earnings per share 0.04 0.04
6. Comprehensive Income
7. Total comprehensive Income 28,904,179 29,519,643
The legal representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.5 Consolidated statement of cash flow
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
Item Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 2,594,618,747 3,376,086,666
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Cash received from receiving insurance premium of original
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Sum of current period Sum of prior period
insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment funds
Net increase in dealing with trading financial assets
Cash received from collecting interest, handling fees and
commission
Net increase in borrowings
Net increase in repurchasement business funds
Tax refund received 17,998,725 24,650,249
Other cash received related to operating activities 45,571,455 42,554,630
Subtotal of cash flows of operating activities 2,658,188,927 3,443,291,545
Cash paid for goods and services 593,465,656 767,117,458
Net increase in customer loans and advances
Net increase in deposits in central bank and interbank deposits
Cash paid to original insurance contract payments
Cash paid to interest, handling fees and commission
Cash paid to policy bonus
Cash paid to and on behalf of employees 224,792,482 220,843,252
Cash paid for taxes and expenses 979,129,937 1,221,867,315
Other cash paid related to operating activities 451,642,363 648,992,180
Sub-total of cash outflows of operating activities 2,249,030,438 2,858,820,205
Net cash flow from operating activities 409,158,489 584,471,340
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term of over 3 months 457,524,719 342,320,001
Cash received from obtaining investment profit 7,651,150 18,269,624
Cash received from disposal of fixed assets, intangible assets
4,000 152,026
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 465,179,869 360,741,651
Cash paid to acquire fixed assets, intangible assets and other
417,217,901 310,153,049
long-term assets
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Sum of current period Sum of prior period
Cash for investment
Cash paid to buy fixed deposit with the term of over 3 months 550,392,728
Net increase in hypothecated loan
Net cash paid to acquire branch and other business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 967,610,629 310,153,049
Net cash flow from investing activities -502,430,760 50,588,602
3. Cash flow from financing activities
Cash received from acquiring investment
Including: cash received from acquiring minority shareholders
investment by branch
Cash received from acquiring loans
Cash received from issuing bonds
Other cash received related to financing activities
Subtotal cash flows of financing activities
Cash paid to pay debts
Cash paid to distribute dividend, profit or pay interest 801,465,600
Including: dividend and profit paid to minority shareholders
by branch
Other cash paid related to financing activities
Subtotal of cash outflows of financing activities 801,465,600
Net cash flow from financing activities -801,465,600
4. Influences of exchange rate fluctuation on cash and
cash equivalents
5. Net Increase in cash and cash equivalents -93,272,271 -166,405,658
Plus: balance at the beginning of the period of cash and cash
1,562,294,026 1,256,517,873
equivalents
6. Balance at the end of the period of cash and cash
1,469,021,755 1,090,112,215
equivalents
The legal representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
2.6 Statement of cash flow of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
Item Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 653,588,149 839,447,070
Tax refund received 6,272,432 7,642,578
Other cash received related to operating activities 393,008,207 25,626,302
Subtotal of cash flows of operating activities 1,052,868,788 872,715,950
Cash paid for goods and services 310,853,962 583,262,290
Cash paid to and on behalf of employees 61,492,292 83,043,588
Cash paid for taxes and expenses 174,337,248 202,948,803
Other cash paid related to operating activities 27,978,590 533,878,093
Sub-total of cash outflows of operating activities 574,662,092 1,403,132,774
Net cash flow from operating activities 478,206,696 -530,416,824
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term of over 3 months 457,524,719 342,320,001
Cash received from obtaining investment profit 51,330,749 1,042,319,919
Net cash received from disposal of fixed assets, intangible
4,000 55,925
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 508,859,468 1,384,695,845
Cash paid to acquire fixed assets, intangible assets and other
36,895,124 32,701,210
long-term assets
Cash for investment 3,700,000 4,424,000
Cash paid to buy fixed deposit with the term of over 3 months 538,392,728
Net cash paid to acquire branch and other business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 578,987,852 37,125,210
Net cash flow from investing activities -70,128,384 1,347,570,635
3. Cash flow from financing activities
Cash received from acquiring investment
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Sum of current period Sum of prior period
Cash received from acquiring loans
Cash received from issuing bonds
Other cash received related to financing activities
Subtotal cash flows of financing activities
Cash paid to pay debts
Cash paid to distribute dividend, profit or pay interest 801,465,600
Other cash paid related to financing activities
Subtotal of cash outflows of financing activities 801,465,600
Net cash flow from financing activities -801,465,600
4. Influences of exchange rate fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash equivalents 408,078,312 15,688,211
Plus: balance at the beginning of the period of cash and cash
425,084,049 296,735,240
equivalents
6. Balance at the end of the period of cash and cash
833,162,361 312,423,451
equivalents
The legal representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
2.7 Consolidated owner’s equity changing list
Unit: Yuan
Sum of current period
Shareholders’ equity of parent company
Item Minus: Minority Total
Paid-in capital Capital Special Surplus General risk Undistributed
Treasury Others stockholders’ shareholders’
(or capital stock) reserves reserves reserves preparation profits
stock equity equity
1. Balance at the end of last
685,464,000 562,139,042 342,732,000 4,322,769,136 146,381,009 6,059,485,187
year
Plus: Accounting policies
changing
Previous error correction
Others
2. Balance at the beginning of
685,464,000 562,139,042 342,732,000 4,322,769,136 146,381,009 6,059,485,187
this year
3. Increasing or reducing
amount of this year (reducing 740,574,221 740,574,221
amount is listed with "-")
3.1 Net profits 740,574,221 740,574,221
3.2 Other Comprehensive
Income
Subtotal of above 3.1 and 3.2 740,574,221 740,574,221
3.3 Owners' invested and
reduced capital
3.3.1 Owners' invested capital
3.3.2 Amount of shares paid
and reckoned in owners'
equity
3.3.3 Others
3.4 Profit distribution
3.4.1 Drew surplus reserves
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Sum of current period
Shareholders’ equity of parent company
Item Minus: Minority Total
Paid-in capital Capital Special Surplus General risk Undistributed
Treasury Others stockholders’ shareholders’
(or capital stock) reserves reserves reserves preparation profits
stock equity equity
3.4.2 Drew general risk
preparation
3.4.3 Distribution to owners
(or shareholders)
3.4.4 Others
3.5 Internal transfer of
owners' equity
3.5.1 Capital reserves
transferred and increased
capital (or capital stock)
3.5.2 Surplus reserves
transferred and increased
capital (or capital stock)
3.5.3 Surplus reserves
covering deficit
3.5.4 Others
3.6 Special reserves
3.6.1 Withdrawal of this
period
3.6.2 Usage of this period
3.7 Others
4. Banlance at the end of this
685,464,000 562,139,042 342,732,000 5,063,343,357 146,381,009 6,800,059,408
period
Unit: Yuan
Item Sum of current period
Shareholders’ equity of parent company Minority Total
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Minus:
Paid-in capital Capital Special Surplus General risk Undistributed
Treasury Others
(or capital stock) reserves reserves reserves preparation profits
stock
1. Balance at the end of last
527,280,000 562,139,042 295,942,630 3,628,279,989 136,318,487 5,149,960,148
year
Plus: Accounting policies
changing
Previous error correction
Others
2. Balance at the beginning of
527,280,000 562,139,042 295,942,630 3,628,279,989 136,318,487 5,149,960,148
this year
3. Increasing or reducing
amount of this year (reducing 158,184,000 46,789,370 694,489,147 10,062,522 909,525,039
amount is listed with "-")
3.1 Net profits 1,700,928,117 1,700,928,117
3.2 Other Comprehensive
Income
Subtotal of above 3.1 and 3.2 1,700,928,117 1,700,928,117
3.3 Owners' invested and
10,062,522 10,062,522
reduced capital
3.3.1 Owners' invested capital 10,062,522 10,062,522
3.3.2 Amount of shares paid
and reckoned in owners'
equity
3.3.3 Others
3.4 Profit distribution 46,789,370 -848,254,970 -801,465,600
3.4.1 Drew surplus reserves 46,789,370 -46,789,370
3.4.2 Drew general risk
preparation
3.4.3 Distribution to owners
-801,465,600 -801,465,600
(or shareholders)
3.4.4 Others
3.5 Internal transfer of 158,184,000 -158,184,000
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Sum of current period
Shareholders’ equity of parent company
Item Minus: Minority Total
Paid-in capital Capital Special Surplus General risk Undistributed
Treasury Others stockholders’ shareholders’
(or capital stock) reserves reserves reserves preparation profits
stock equity equity
owners' equity
3.5.1 Capital reserves
transferred and increased
capital (or capital stock)
3.5.2 Surplus reserves
transferred and increased
capital (or capital stock)
3.5.3 Surplus reserves
covering deficit
3.5.4 Others 158,184,000 -158,184,000
3.6 Special reserves
3.6.1 Withdrawal of this
period
3.6.2 Usage of this period
3.7 Others
4. Banlance at the end of this
685,464,000 562,139,042 342,732,000 4,322,769,136 146,381,009 6,059,485,187
period
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
Sum of current period
Item Minus:
Paid-in capital (or Capital Special Surplus General risk Undistributed Total owner’s
Treasury
capital stock) reserves reserves reserves preparation profits equity
stock
1. Balance at the end of last year 685,464,000 557,222,454 342,732,000 3,410,769,214 4,996,187,668
Plus: Accounting policies changing
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Previous error correction
Others
2. Balance at the beginning of this year 685,464,000 557,222,454 342,732,000 3,410,769,214 4,996,187,668
3. Increasing or reducing amount of this
28,904,179 28,904,179
period (reducing amount is listed with "-")
3.1 Net profits 28,904,179 28,904,179
3.2 Other Comprehensive Income
Subtotal of above 3.1 and 3.2 28,904,179 28,904,179
3.3 Owners' invested and reduced capital
3.3.1 Owners' invested capital
3.3.2 Amount of shares paid and reckoned in
owners' equity
3.3.3 Others
3.4 Profit distribution
3.4.1 Drew surplus reserves
3.4.2 Drew general risk preparation
3.4.3 Distribution to owners (or shareholders)
3.4.4 Others
3.5 Internal transfer of owners' equity
3.5.1 Capital reserves transferred and
increased capital (or capital stock)
3.5.2 Surplus reserves transferred and
increased capital (or capital stock)
3.5.3 Surplus reserves covering deficit
3.5.4 Others
3.6 Special reserves
3.6.1 Withdrawal of this period
3.6.2 Usage of this period
3.7 Others
4. Banlance at the end of this period 685,464,000 557,222,454 342,732,000 3,439,673,393 5,025,091,847
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Unit: Yuan
Sum of prior period
Item Minus:
Paid-in capital (or capital Capital Special Surplus General risk Undistributed Total owner’s
Treasury
stock) reserves reserves reserves preparation profits equity
stock
1. Balance at the end of last year 527,280,000 557,222,454 295,942,630 3,286,312,378 4,666,757,462
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 527,280,000 557,222,454 295,942,630 3,286,312,378 4,666,757,462
3. Increasing or reducing amount of this
period (reducing amount is listed with 158,184,000 46,789,370 124,456,836 329,430,206
"-")
3.1 Net profits 1,130,895,806 1,130,895,806
3.2 Other Comprehensive Income
Subtotal of above 3.1 and 3.2 1,130,895,806 1,130,895,806
3.3 Owners' invested and reduced capital
3.3.1 Owners' invested capital
3.3.2 Amount of shares paid and
reckoned in owners' equity
3.3.3 Others
3.4 Profit distribution 46,789,370 -848,254,970 -801,465,600
3.4.1 Drew surplus reserves 46,789,370 -46,789,370
3.4.2 Drew general risk preparation
3.4.3 Distribution to owners (or
-801,465,600 -801,465,600
shareholders)
3.4.4 Others
3.5 Internal transfer of owners' equity 158,184,000 -158,184,000
3.5.1 Capital reserves transferred and
increased capital (or capital stock)
3.5.2 Surplus reserves transferred and
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
increased capital (or capital stock)
3.5.3 Surplus reserves covering deficit
3.5.4 Others 158,184,000 -158,184,000
3.6 Special reserves
3.6.1 Withdrawal of this period
3.6.2 Usage of this period
3.7 Others
4. Banlance at the end of this period 685,464,000 557,222,454 342,732,000 3,410,769,214 4,996,187,668
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
3. Basic information of this company
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company”) was incorporated as a joint stock limited
company in accordance with the Company Law of the People’s Republic of China (the “PRC”) in a
reorganization carried out by Yantai Changyu Group Co., Ltd. (“Changyu Group Company”), in which
Changyu Group Company injected certain assets and liabilities in relation to the brandy, wine, sparkling
wine, and tonic wine production and sales businesses to the Company. The Company and its
subsidiaries (the “Group”) are principally engaged in the production and sales of wine, brandy and
champagne.
Pursuant to the approval from the Government of Shandong Province (Luzheng [1997]119), the
Company was reorganized as a joint stock limited company on April 10, 1997. On September 23, 1997,
the Company was approved by China Securities Regulatory Commission (the “CSRC”) ([1997] No. 52)
to issue 88,000,000 domestically listed foreign investment shares (“B shares”) on Shenzhen Stock
Exchange. On September 18, 1997, the Company obtained the business license with the registered
number No. 26718011-9.
In October 2000, the Company was approved by CSRC Zheng Jian Zi [2000] No.148 to issue
32,000,000 domestically listed Common Shares (“A Shares”). The A shares were listed on Shenzhen
Stock Exchange on October 26, 2000.
Pursuant to the share reform notices issued by the Company in February 2006, Changyu Group
Company transferred its 13,977,600 shares to the shareholders of A share of the Company. After the
reform, percentage of equity attributable to Changyu Group Company decreased from 53.8% to 50.4%.
In June 2012, the Company gave additional 3 shares per 10 shares to all shareholders on the base
number of total equity of 527,280,000 on December 31, 2011, totally increased capital stock of
158,184,000 shares. By December 31, 2012, the Company issued capital stock totally of 685,464,000
shares accumulatively.
The holding company of the Group is Changyu Group Company, which was ultimately controlled by
Yantai SASAC, ILLVA Saronno Investment Italy, International Finance Corporation and Yaitai Yuhua
Investment and Development Company Limited.
4. Main accounting policies, accounting estimates and previous error
4.1 Basis of preparation of financial statement
These financial statements have been prepared in accordance with Chinese Accounting
Standards---Basic Standards (“CAS”) published by Ministry of Finance in February 2006 and 38
detailed accounting standards, guidelines, interpretations and other regulations (generally called
“Chinese Accounting Standards”).
The financial statements are prepared on a going concern basis.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Except for certain financial instrument, the measurement basis adopted by the group in preparing its
financial statement is historical cost. Subsequently, if the assets are impaired, impairment provisions
are made in accordance with the relevant accounting standards.
4.2 Statement on compliance with CAS
The financial statements fulfill the requirement of CAS and give a true and fair view of the financial
position of the Company and of the Group as at June 30, 2013, and of the operating results and cash
flows for January-June 2013.
4.3 Accounting year
The accounting year of the Group is from January 1 to December 31.
4.4 Reporting currency
The Group reporting and presentation currency is the Renminbi (“RMB”). Unless otherwise stated, the
unit of the currency is Yuan.
4.5 Accounting treatment method for business combination under common control and non-common
control
4.5.1 Business combination under common control
A business combination involving entities or businesses under common control is a business
combination in which all of the combining entities or businesses are ultimately controlled by
the same party or parties both before and after the business combination, and that control is
not transitory. The combining entity that obtains control of the other combining entities or
businesses is the acquirer, and the other entities involved are the acquirees. The combination
date is when the acquirer effectively obtains the control of the acquiree.
The assets and liabilities obtained by the acquirer shall be measured on the basis of the
carrying amount in the acquiree's accounts as at the date of combination. Where there is a
difference between the carrying amount of the net assets acquired by the acquirer and the
carrying amount of the consideration paid by it (or the total par value of the shares issued), the
balance of stock premium in capital surplus and transfer-in capital surplus under original
policies shall be adjusted. If the amount is not sufficient to offset the value of the net assets
acquired, retained earnings shall be adjusted.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
4.5.2 Business combination under non-common control
A business combination involving entities or businesses under non-common control is a
business combination in which all of the combining entities or businesses are ultimately
controlled by the different party or same parties before and after the business combination.
The combining entity that obtains control of the other combining entities or businesses is the
acquirer, and the other entities involved are the acquirees. The acquisition date is when the
acquirer effectively obtains the control of the acquiree.
Under business combination under non-common control, the acquiree may recognize the fair
value of assets, liabilities and contingent liabilities.
When the sum of the fair value of paid combination consideration (or the fair value of issued
equity securities) and the fair value of acquiree’s equity held before the acquisition date is
larger than acquiree recognizable net assets fair value acquired in combination, the difference
should be recognized as goodwill, which shall be subsequently measured by subtracting
accumulative depreciation loss from cost. If the sum of the fair value of paid combination
consideration (or the fair value of issued equity securities) and the fair value of acquiree’s
equity held before the acquisition date is smaller than acquiree recognizable net assets fair
value acquired in combination, the fair value of each recognizable assets, liabilities and
contingent liabilities of acquiree and the measurement of the fair value of paid combination
consideration (or the fair value of issued equity securities) and the fair value of acquiree’s
equity held before the acquisition date shall be rechecked firstly. After rechecking, if the sum
of the fair value of paid combination consideration (or the fair value of issued equity securities)
and the fair value of acquiree’s equity held before the acquisition date is still smaller than
acquiree recognizable net assets fair value acquired in combination, the difference shall be
counted into current profits and losses.
4.6 Compiling methods of consolidated financial statements
4.6.1 Compiling methods of consolidated financial statements
The consolidation scope of consolidated financial statements is determined on the basis of control. The
consolidated financial statements include the financial statements of the Company and its subsidiaries
for the year ended June 30, 2013. Subsidiary refers to the enterprise or main body controlled by this
company.
Accounting policies adopted by the subsidiaries are in consistency with the policies adopted by the
Company. All intercompany balances, transactions, unrealized profits and losses and dividends within
the Group are eliminated in full on consolidation.
When losses of current period borne by minority shareholders of a subsidiary exceed the shares of
minority shareholders in the shareholders’ equity of such subsidiary at the period beginning, the
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
balance shall be used to reduce the minority shareholders’ equity. Any changes of minority
shareholders’ equity that do not result loss of control is accounted for as equity transaction.
For the subsidiaries acquired through business combination under non-common control, their operating
result and cash flow shall be included in the Group from the date the parent company obtains the control.
In preparation of the consolidated financial statements, the financial statements of the subsidiary shall be
adjusted on the basis of the fair value of the identifiable assets and liabilities and contingent liabilities
determined on the acquisition date.
For the subsidiaries acquired through business combination under common control, their operating
result and cash flow shall be included in the opening balances of the Group in the acquisition period.
When compiling comparison consolidated financial statement, related items of previous financial
statement shall be adjusted. It shall be deemed that the reported main body formed by consolidation
exists after the final controlling party begins to control.
4.7 Recognition standards of cash and cash equivalents
Cash comprises cash on hand and demand deposit of this Group. Cash equivalents refers to short term
highly liquid investments which are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value.
4.8 Foreign currency transactions and foreign currency statement translating
4.8.1 Foreign currency transactions
For any foreign currency transactions, the foreign currency amount shall be translated to booking
standard money.
During the initial recognition of foreign currency transactions, the foreign currency amount shall be
translated to booking standard money by adopting the spot exchange rate on the date that the
transaction occurs. On the balance sheet date, monetary items denominated in foreign currencies are
retranslated by the spot exchange rate on the balance sheet date. All settlements and translating
differences of monetary items are taken to the income statement of current period with the exception of
differences on specified foreign currency borrowings related to the assets in accordance with the
capitalisation conditions which shall be dealed with according to the priciples of borrowing
capitalisation. Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the spot exchange rate on the date that the transaction occurs, and the amount of
booking standard money shall not be changed. Non-monetary items measured at fair value in a foreign
currency are translated using the spot exchange rate on the date when the fair value is determined, and
the accrued difference is accounted into income statement of current period or other comprehensive
income according to the nature of non-monetary items.
Foreign currency cash flows are translated using the spot exchange rate prevailing on the date that the
cash flows occur. The effect of exchange rate changes on cash is separately presented as an adjustment
item in the cash flow statement.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
4.9 Financial instruments
Financial instruments refer to the contracts whereby the financial assets of an enterprise are formed,
and whereby the financial liabilities or right instruments of any other entity are formed.
4.9.1 Classification of financial assets
Financial assets are classified into the following categories when they are initially recognized,
including financial assets at fair value through profits or losses, held to maturity investments, loans and
receivables, financial assets available for sale, and derivative instrument appointed as effective hedging
instrument. The classification of financial assets is confirmed while initial recognition.
Financial liabilities are classified into the following categories when they are initially recognized,
including financial liabilities at fair value through profits or losses, other financial liabilities, and
derivative instrument appointed as effective hedging instrument. The classification of financial
liabilities is confirmed while initial recognition.
4.9.2 Recognition reference and measurement methods of financial instruments
Financial assets of this Group are initially recognized at fair value. For financial assets measured at fair
value through profits or losses, the transaction expenses thereof are directly included in the current
profits or losses; for other categories of financial assets and financial liabilities, the transaction
expenses thereof are included in the initial costs.
The subsequent measurement of financial assets depends on the classification:
Financial assets at fair value through profits and losses
Financial assets at fair value through profit or loss include financial assets held for trading and
financial assets designated upon initial recognition as at fair value through profit or loss. Financial
assets are classified as held for trading if they meet any of the following requirements:
(i) The financial assets being acquired mainly for the purpose of selling or repurchase in the near
future;
(ii) Forming a part of the identifiable combination of financial instruments, which are managed in a
centralized way, and for which there is objective evidence that the enterprise will manage the
combination by way of short-term profit-making in the near future;
(iii) Being a derivative instrument, except for the derivative instrument being appointed as effective
arbitrage tool, derivative instrument that belongs to financial assurance contract and derivative
instrument that links with equity tools with no quoted market price in an active market and the fair
value cannot be reliably measured and be settled by delivering such equity tool. Theses financial assets
are subsequently measured at fair value, and all the realized and unrealized profits and losses are
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included in profits and losses of the current period. The dividends and interest income related to
financial assets at fair value through profits and losses are included in profits and losses of the current
period.
Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are
classified as held-to-maturity when the Group has the positive intention and ability to hold to
maturity. Held-to-maturity investments are subsequently measured at carried amortized cost
using the effective interest method. Gains and losses are recognized in the income statement
when the investments are through the amortization or impaired, as well as finally recognized.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Such assets are subsequently carried at amortized cost
using the effective interest method. Gains and losses are recognized in the income statement
when the loans and receivables are through the amortization process or impaired.
Available-for-sale financial assets
Available for sale financial assets are non-derivative financial that are initially designated as
available for sale or are not classified into any of the other three categories. After initial
recognition, available for sale financial assets are measured at fair value, with gains or losses
recognized as capital surplus reserve until the investment is derecognized or until the
investment is determined to be impaired, at which time the cumulative gain or loss previously
reported in equity are recognized in the income statement. Amortized cost is calculated taking
into account any discount or premium on acquisition and includes fees that are an integral part
of the effective interest rate and transaction costs. Interest and dividends earned are recoded as
interest income and dividend income, respectively and are recognized in the income statement.
Available-for-sale financial assets which have no quoted price and fair value cannot be reliably
measured are measured at cost.
For financial liabilities at fair value through profits and losses of this Group, the transaction expenses
thereof are directly included in the current profits or losses, while the transaction expenses of other
financial liabilities are include in the initially recognized amounts.
The subsequent measurement of financial liabilities depends on the classification:
Financial liabilities at fair value through profits and losses
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Financial liabilities at fair value through profits and losses include transaction financial
liabilities, and the designated financial liabilities measured at fair value upon initial recognition,
and whose variation is recognized in the income statement of the current year. Financial
liabilities that meet any of the following requirements are classified as transaction financial
liabilities:
(i) The financial liability being undertaken mainly for the purpose of selling or repurchase in
the near future;
(ii) Forming a part of the identifiable combination of financial instruments, which are managed
in a centralized way, and for which there is objective evidence that the enterprise will manage
the combination by way of short-term profit-making in the near future;
(iii) Being a derivative instrument, except for the derivative instrument being appointed as
effective arbitrage tool, derivative instrument that belongs to financial assurance contract and
derivative instrument that links with equity tools with no quoted market price in an active
market and the fair value cannot be reliably measured and be settled by delivering such equity
tool. Theses financial liabilities are subsequently measured at fair value, and all the realized
and unrealized profits and losses are recognized in the income statement of the current year.
Other financial liabilities
The financial liabilities are subsequently measured at amortized cost by adopting effective
interest rate method.
4.9.3 Recognition reference and measurement methods for transfers of financial assets
If the Group has transferred substantially all the risks and rewards of the asset and waived the
control of the asset, the asset is derecognized. If the Group has retained substantially all the
risks and rewards of the asset, the assets are not de recognized.
Where the Group has neither transferred nor retained substantially all the risks and rewards of
the asset, if the Group waived the control of the assets, the financial assets are derecognised
and the assets and liabilities are recognized accordingly; if the Group did not waive the control
of the assets, the financial assets are recognized to the extent of the Group's continuing
involvement in the asset, and the liabilities are recognized accordingly.
4.9.4 Conditions for terminated recognition of financial liabilities
If the following conditions are met, the recognition of financial asset shall be terminated (or
part of financial asset, or part of a group of similar financial assets):
(i) If the right for collecting the cash flow of the said financial asset is terminated; or
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(ii) If the right for collecting the cash flow of the said financial asset is transferred, or the obligation
of paying all the collected cash flow to the third party is borne under “handling over” agreement and (a)
almost all the risks and rewards on financial asset ownership are transferred actually, or (b) although the
risks and rewards on financial asset ownership aren’t transferred actually or maintained, the control to
such financial asset has been given up.
A financial liability is finally recognized when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a final recognition of the
original liability and a recognition of a new liability, and the difference between the respective
carrying amounts is recognized in the income statement.
In a regular way purchase or sale financial instrument, the financial instrument should be recognized or
derecognized on transaction date. A regular way purchase or sale is a purchase or sale of a financial
asset under a contract whose terms require delivery of the asset within the time frame established
generally by regulation of convention in the marketplace concerned. Transaction date is the date that
the Group commits to purchase or disposal a financial instrument.
4.9.5 Recognition methods of fair value of financial assets and financial liabilities
The fair value of investments that are actively traded in organized financial markets is
determined by reference to quoted market prices. For investments where there is no active
market, fair value is determined using valuation techniques. Such techniques include using
recent arm’s length market transactions; reference to the current market value of another
instrument, which is substantially the same; a discounted cash flow analysis; option pricing
models and other valuation models.
4.9.6 Impairment test method and method for accruing impairment provision of financial assets (excluding
accounts receivable)
The Group assesses at each balance sheet date whether there is any objective evidence that a
financial asset or a group of financial assets is impaired. Positive evidences refer to those
occurred after the initial recognition, have effect on estimated future cash flows of the financial
assets, and can be measured reliably.
Financial assets carried at amortized cost
If there is objective evidence that an impairment loss on financial assets carried at amortized cost has
been incurred, the amount of the loss is measured as the difference between the assets’ carrying
amount and the present value of estimated future cash flows (excluding future credit losses that have
not been incurred) discounted at the financial asset’s original effective interest rate (namely, the
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effective interest rate calculated and determined for initial recognition) after taking into account of the
collateral over these balances. As for floating interest rate, the current effective interest rate regulated
in the contract shall be adopted as the discount rate for calculating the present value of future cash
flow.
The Group first assesses whether objective evidence of impairment exists individually for
financial assets that are individually significant. If it is determined that objective evidence of
impairment exists for an individually assessed financial asset, the impairment losses are
recognized in the income statement of the current year. Not individually significant financial
assets are assessed individually or collectively included in a group of financial assets with
similar credit risk characteristics. Assets that are individually assessed for impairment and for
which an impairment loss is or continues to be recognized are not included in a collective
assessment of impairment.
If, in a subsequent period, the amount of impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognized, the previously recognized
impairment loss is reversed. Any subsequent reversal of an impairment loss is recognized in the
income statement, to the extent that the carrying value of asset does not exceed its amortized cost at the
reversal date.
Available-for-sale financial assets
When a decline in the fair value of an available-for-sale financial asset has been recognized directly in
equity and there is objective evidence that the asset is impaired the cumulative loss that had been
recognized directly in capital surplus are removed from equity and recognized in profit or loss of the
current period. The amount of the cumulative loss that is removed from equity and recognized in the
income statement is be difference between the acquisition cost (net of any principal repayment and
amortization) and current fair value, less any impairment loss on that financial asset previously
recognized in the income statement.
Impairment losses on debt instruments are reversed through the profits or losses, if the increase
in fair value of the instrument can be objectively related to an event occurring after the
impairment loss was recognized in the income statement. Impairment losses on equity
instruments classified as available for sale are not reversed through the income statement. Fair
value increase after impairment is directly recognized in other comprehensive income.
Financial assets carried at cost
If there is objective evidence that the financial assets have been impaired, the amount of the
impairment loss is measured as the difference between the carrying amount of the financial asset and
the present value of estimated future cash flows discounted at the current market rate of return for a
similar financial asset, and recognized in the income statement of the current year. Such impairment
losses will not be reversed.
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The impairment on long-term equity investment which are measured by employing cost
method in accordance with CAS2-Long-term equity investments, have no quoted market price
in an active market and the fair value cannot be reliably measured are recorded according to
the aforesaid requirements.
4.10 Recognition standards and accrual methods for bad account provision of accounts
receivable
4.10.1 Bad account provision of individually significant accounts receivable
On the balance sheet date, this Group carried out impairment
Judgement reference or amount standard for individually significant provision assessment independently on the individual amount
accounts with book balance over RMB 3,000,000 yuan among the
accounts receivable and other receivables.
If there is objective evidence that an impairment has been
Accruing method for individually significant accounts accrued for incurred, the impairment losses are recognized according to
bad account provision individually the difference between the present value of future cash flow
and the book value, and impairment provision is accrued.
4.10.2 Individually insignificant accounts receivable accrued for bad account provision
individually
If there is objective evidence that this Group can’t call back
the accounts according to original articles, the individually
Reasons for accruing for bad account provision individually
insignificant accounts receivable can be accrued for bad
account provision individually.
The impairment losses are recognized according to the
Methods for accruing bad account provision difference between the present value of future cash flow and
the book value, and impairment provision is accrued.
4.11 Inventories
4.11.1 Classification of inventories
Inventories comprises raw materials, goods in process, commodity stocks.
The inventories are initially measured in cost. The cost of inventory consists of purchase costs,
processing costs and other costs.
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The agricultural products after the harvest are handled in accordance with the CAS 1- Inventories.
4.11.2 Pricing method for sending out inventories
Pricing method: Weighted average method
4.11.3 Recognition reference of the net realisable value of inventories and the method for accruing
inventory depreciation provision
Inventories are stated at the lower of cost and net realisable value at the balance sheet date. If the cost
of inventories is higher than the net realizable value, the provision for the loss on decline in value of
inventories are made and be recognized in income statement. If the factors causing any impairment of
the inventories have disappeared, the amount of impairment are resumed and be reversed from the
provision for the loss on decline in value of inventories that has been made. The reversed amount is
recognised in the income statement of current year.
The net realisable value is determined based on the estimated selling prices less any estimated costs to
be incurred to disposal. The inventory provision for finished goods are assessed on the ground of each
item of inventories, and that for raw materials are made on the ground of the categories of inventories.
Inventories that are relevant to products produced and sold in the same region, have the same or
similar end use or purpose and difficult to be measured separately from other items shall be accrued for
inventory depreciation provision.
4.11.4 Inventory system for the inventories
Inventory system: Perpetual inventory system
4.11.5 Amortization method of low-priced and easily-worn articles and packages
Amortization method of low-priced and easily-worn articles: One-off amortization method
Amortization method of packages: One-off amortization method
4.12 Long-term equity investments
4.12.1 Recognition of initial investment cost
Long-term equity investments comprise investments in subsidiaries, investments in joint
ventures, investments in associates and rights and interests investment that has no controls,
has no joint control or significant influence to the invested entity, has no quoted market price
in an active market and the fair value cannot be reliably measured. Long-term equity
investments are initially measured at initial investment cost. For long-term equity investments
acquired from business combination under common control, the initial investment cost is
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recorded at the book value of the owner’s equity of the acquiree acquired. For long-term
equity investments acquired from business combination under non-common control, the initial
investment cost is recorded at combination cost (where the business combination under
non-common control is realized by steps through multiple transactions, the sum of the book
value of the acquiree’s equity investment held before the acquisition date and the newly
increased investment cost on the acquisition date shall be regarded as initial investment cost).
Combination cost includes the sum of the assets paid by the acquirer, accrued or assumed
liabilities, and the fair value of issued equity securities.As for long-term equity investments
acquired from methods other than business combination, the initial investment cost is recorded
at cash paid plus any direct expense, tax or other necessary expenditures associate with the
investment, or the fair value of the equity instruments issued, or value agreed in the
investment contract, except for the value agreed in the investment contract is not a fair market
value.
4.12.2 Subsequent measurement and recognition of loss and profit
Long-term equity investments by which Group has no controls, has no joint control or
significant influence to invested entities, has no quoted market price in an active market and
the fair value cannot be reliably measured are measured on cost method basis. Long-term
equity investments by which the company has control to the invested entities shall be
measured on cost method basis in separate financial statement of this company. The invested
entities over which the Group has joint control or significant influence are measured on equity
method basis. When cost method is adopted, the long-term equity investments are measured at
the initial investment cost, except that the initial investment cost contains declared and
unissued cash dividend or profit. The dividends or profits declared to distribute by the
invested entity are recognized as the current investment income. Impairment is assessed
according to relevant policies. Excess of the initial cost of investment over the Group’s
interest in the fair value of the identifiable net assets of the invested entity should be included
in the initial cost of long-term equity investment; Excess of the Group’s interest in the fair
value of identifiable net assets of the invested entities over the initial cost of investment
should be recognized in income statement. The Group will recognize the investment profits or
losses and adjust the book value of the long-term equity investment in accordance with the
attributable share of the net profits or losses of the invested entity on equity method basis. The
attributable share of the net profits and losses of the invested entity should be recognised on
the ground of the fair value of all identifiable assets in accordance with the accounting policy
and accounting period of the Group (recognized in full if the internal transaction loss belongs
to assets impairment loss), and the inter-company transactions between the associate and joint
ventures attributable to the Group on the ground of the interest in invested entities should be
eliminated after making adjustments on the net profits of the invested entities. For the
investment in associate and joint ventures before the first-time adoption date, the debit balance
of the investments, if any, also should be deducted from the investment income. The Group
will reduce the book value of the long-term equity investment in accordance with the share of
profits or cash dividends declared to distribute by the invested entities. The net losses of the
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invested entity should be recognized 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 entities are reduced to zero, unless the Group has the obligation to assume extra
losses. Where any change is made to the owner's equity other than the net profits and losses of
the invested entity, the book value of the long-term equity investment are adjusted and be
included in the owner’s equity. Which will be transferred to the income statement when
disposing of the long-term equity investment. While dealing with long-term equity investment
on equity method basis, the part that is accrued into shareholder’s rights and interests shall be
transferred into current profits and losses according to relevant proportion.
4.12.3 Reference for recognizing common control and significant influence on invested unit
Control refers to the right of deciding the financial and operating policies of an enterprise, and
getting interests from the operating activities of such enterprise. Joint control refers to the
mutual control to a certain economic activity according to contract agreement and exists only
when the investing parties who need to share the control power agree unanimously for making
important financial and operating decisions related to such economic activity. Significant
influence refers to the right to take part in decision making of financial and operating policies
of an enterprise, but can’t control the formulation of such policies independently or with other
parties.
4.12.4 Impairment test method and method for accruing impairment provision
On each balance sheet date, the Group made assessment on whether or not there is any indication of
potential impairment of long-term equity investment. If there is any evidence that indicates the
possibility of asset impairment, the recoverable amount of the asset is estimated. If the recoverable
amount of the asset is lower than the book value, asset impairment provision shall be accrued
according to the difference and charged to the income statement in the period. After the impairment
loss of long-term equity investment has been recognized, it won’t be reversed in future accounting
periods.
4.13 Fixed assets
4.13.1 Recognition conditions of fixed assets
Fixed assets can only be confirmed that the economic benefits relating to the fixed assets are likely to
flow into the Group, and the cost of the fixed assets can be measured reliably. If the subsequent
expenses related to the fixed asset meet the confirmation conditions, they shall be included in the cost
of fixed asset; the book value of the substituted part shall be terminated, otherwise, they shall be
included in the current profits and losses. Fixed assets are initially measured at its cost. The cost of
purchased fixed assets includes the purchase price, relevant taxes, freight, loading and unloading fees,
professional service fees and other expenditures attributed to the fixed assets before they have been put
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into operation.
4.13.2 Depreciation methods of kinds of fixed assets
Depreciation is calculated on the fixed year average method basis. The estimated useful life, residual
value and annual depreciation rate are as follows:
Estimated useful life Estimated residual value Annual depreciation rate
Buildings 30-40years 5%-40% 2%-3.2%
Machinery 10-20years 5% 4.8%-9.5%
Motor vehicles 6-12years 5% 7.9%-15.8%
If the components of fixed assets have different useful lives or provide economic benefits to the Group
in different patterns, different depreciation rates should be used.
The Group reviewed the useful life, expected net salvage value, and the depreciation method of the
fixed assets at least at the end of each year, and made adjustment on if necessary.
4.13.3 Impairment test method and method for accruing impairment provision of fixed assets
On each balance sheet date, the Group made assessment on whether or not there is any indication of
potential impairment of fixed assets. If there is any evidence that indicates the possibility of asset
impairment, the recoverable amount of the asset is estimated. The recoverable amount of an asset is the
higher of the asset's or cash-generating unit's value in use and its fair value less costs to sell, and is
determined for an individual asset. If it is difficult to determine the recoverable amount individually,
the recoverable amount is determined for the cash-generating unit to which the asset belongs. Cash
generating unit is determined on the ground of the asset generate cash inflows that are largely
independent of those from other assets or groups of assets.
An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable
amount. An impairment loss is charged to the income statement and provision is made accordingly.
After a loss of asset impairment has been recognized, it is not be reversed in future accounting periods.
4.14 Construction in progress
4.14.1 Classification of construction in progress
Construction in progress are measured on actual construction costs, including the direct costs of
construction, capitalised borrowing costs during the period of construction and other expenditures.
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4.14.2 Reclassification standard and time of construction in progress to fixed assets
Construction in progress is reclassified to the fixed assets when completed and ready for use.
4.14.3 Impairment test method and method for accruing impairment provision of construction in
progress
On each balance sheet date, the Group made assessment on whether or not there is any indication of
potential impairment of construction in progress. If there is any evidence that indicates the possibility
of asset impairment, the recoverable amount of the asset is estimated. The recoverable amount of an
asset is the higher of the asset's or cash-generating unit's value in use and its fair value less costs to sell,
and is determined for an individual asset. If it is difficult to determine the recoverable amount
individually, the recoverable amount is determined for the cash-generating unit to which the asset
belongs. Cash generating unit is determined on the ground of the asset generate cash inflows that are
largely independent of those from other assets or groups of assets.
An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable
amount. An impairment loss is charged to the income statement and provision is made accordingly.
After a loss of asset impairment has been recognized, it is not be reversed in future accounting periods.
4.15 Borrowing costs
4.15.1 Recognition principles of borrowing costs capitalization
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of
funds, which includes interests, amortization of discounts or premiums, ancillary costs, and exchange
differences arising from foreign currency borrowings.
Borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset shall be capitalized as part of the cost of that asset. A qualifying asset is the fixed asset,
investment real estate and inventory that necessarily takes a substantial period of time to get ready for
its intended use or sale.
The capitalization of borrowing costs as part of the cost of a qualifying asset shall commence when:
(i) Expenditures of the asset are being incurred;
(ii) Borrowing costs are being incurred; and
(iii) Activities that are necessary to prepare the asset for its intended use of sale are in progress.
4.15.2 Capitalization period of borrowing costs
Capitalization of borrowing costs shall cease when all the activities necessary to prepare the qualifying
asset for its intended use of sale are substantially complete. Any borrowing costs incurred after this
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should be recognized in income statement.
4.15.3 Interruption period of capitalization
When the acquisition, construction or production of a qualifying asset is abnormally interrupted before
it necessarily takes a substantial period of time to get ready for its intended use or sale, and the
interruption period exceed three months, the capitalization of borrowing coasts shall be temporally
ceased. During the cessation of capitalization, the borrowing costs should be recognized in income
statement, until the construction resume.
4.15.4 Calculation method of capitalization amount of borrowing costs
During the capitalization period, the amount of borrowing costs eligible for capitalization on a
qualifying asset for each accounting period shall be determined by:
(i) The actual borrowing costs incurred on that borrowing during the period less any investment
income on the temporary investment of those borrowing for specifically purpose borrowing; or
(ii) Applying a capitalization rate to the expenditures on that asset. The capitalization rate shall be
the weighted average of the borrowing coasts applicable to the borrowings of the entity for
general purpose borrowing.
4.16 Biological assets
The biological assets of the Group are vines.
No biological asset may be recognized unless it satisfies the following conditions simultaneously:
(i) The Group possesses or controls this biological asset due to past transaction or event,
(ii) The economic benefits or services potential related to this biological asset is likely to flow into
the Group, and
(iii) The cost of this biological asset can be measured reliably.
Biological assets comprise consumptive biological assets, productive biological assets, and public
welfare biological assets. Biological assets are initially measured at its cost.
The Group made deprecation for whose expected production and business purpose has been realized,
and recorded as costs of relevant assets or expenses to the income statement of the current year. The
depreciation method of productive biological asset is yearly average method. The useful life, expected
net residual value and annual depreciation rate are as follows:
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Category Estimated useful life Estimated residual value Annual depreciation rate
Vines 20 years 5%
Consumptive biological assets and productive biological assets are examined as at each balance sheet
date. If any reliable evidence shows that the realizable net value of any consumptive biological asset or
the recoverable amount of any productive biological asset is lower than its book value due to natural
disaster, plant diseases and insect pests, animal disease or change of market demand, provision should
be made on the basis of the difference between the realizable net value or the recoverable amount and
the book value and be recorded in the income statement of the current period. If the factors which cause
any impairment of a consumptive biological asset have disappeared, the amount of impairment are
resumed and reversed limited to the provision which has been made. The reversed amounts are
recoginised in the income statement of the current period. After accrual, productive biological assets
depreciation preparation shouldn’t be reversed.
No provision should be made for public welfare biological assets.
The Group reviewed the useful life, expected net salvage value, and the depreciation method of the
productive biological assets at the end of each year.
The costs of productive biological assets at the time of harvest are calculated by the total of materials
expenses, labor fee and allocated overheads, and transferred to costs of agriculture products based on
weighted average method. The costs of agriculture products before the harvest of productive biological
asset are measured based on CAS 1- Inventories.
At the time of sale, loss, death, damage or destroy of a biological asset, the balance after deducting the
carrying amount and the relevant taxes from the disposal income are recognised in the income
statement of the current period.
4.17 Intangible assets
4.17.1 Pricing method of intangible assets
Intangible assets would only be recognized when it can bring economic benefits to the group and its
cost could be reliably measured. The opening balance of such intangible assets is measured at its cost.
For those intangible assets that acquired by merger and acquisition and its fair value could be reliably
measured, their book value would be measured by its fair value.
The estimated useful lives are determined on the periods during which it can bring economic benefits to
the Group. If the periods cannot be reliably determined, the intangible assets are classified as intangible
assets with indefinite useful life.
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Intangible assets with finite lives are amortized over the useful life on the straight line basis. The useful
life and amortization method for an intangible asset with a finite useful life are reevaluated at the end of
each year and regulated if necessary.
Intangible assets with indefinite lives are assessed for impairment every year whenever there is an
indication that the intangible asset may be impaired. This kind of intangible assets won’t be amortized
and the useful live shall be rechecked at the end of each fiscal year. If there is evidence that the useful
lives of the intangible assets are finite, accounting treatment shall be carried out according to the
policies for intangible assets with finite lives.
The land use rights obtained by this group are recorded as intangible assets. For self-constructed
buildings, the land use rights and plants are recorded as intangible assets and Fixed assets respectively.
Purchased buildings are allocated between land use rights and buildings based on actual payments, and
are totally recorded as fixed assets when it is difficult to allocate.
4.17.2 Estimation of useful life of intangible assets with finite lives
Item Predicted useful life Reference
Land use right 50 years Useful life of land
Software use right 5 years Predicted period of bringing economic benefits
4.17.3 Judgement reference of intangible assets with indefinite lives
If the periods during which it can bring economic benefits to the Group cannot be reliably determined,
the intangible assets are classified as intangible assets with indefinite useful life. However, the Group
doesn’t have this kind of intangible assets.
4.17.4 Accruing of impairment provision of intangible assets
On each balance sheet date, the Group made assessment on whether or not there is any
indication of potential asset impairment. If there is any evidence that indicates the possibility
of asset impairment, the recoverable amount of the asset is estimated. Independent of whether
there are indication of potential impairment, the goodwill from an enterprise merger and
intangible assets whose useful lives are indefinite are subjected to impairment test at the end
of each year. Intangible assets which are not ready to use also need perform impairment test
every year.
The recoverable amount of an asset is the higher of the asset's or cash-generating unit's value
in use and its fair value less costs to sell, and is determined for an individual asset. If it is
difficult to determine the recoverable amount individually, the recoverable amount is
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determined for the cash-generating unit to which the asset belongs. Cash generating unit is
determined on the ground of the asset generate cash inflows that are largely independent of
those from other assets or groups of assets.
An impairment loss is recognized only if the carrying amount of an asset exceeds its
recoverable amount. An impairment loss is charged to the income statement and provision is
made accordingly.
For the purpose of impairment test, goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the Group's cash-generating units, or groups of
cash-generating units, that are expected to benefit from the synergies of the combination, and
not larger than the reportable segment determined by the Group.
When conducting impairment test on relevant cash-generating units or groups of
cash-generating units that have related goodwill, if there is any evidence indicating that
impairment of the cash-generating units or groups of units has occurred, the enterprise first
carries out impairment test on the cash-generating units or groups of units excluding goodwill,
calculating the recoverable amount, comparing it with the corresponding carrying amount and
recognizing any resulting impairment loss. Then impairment test are conducted on the
cash-generating units or groups of units with goodwill included, the carrying amount of these
cash-generating units or combinations of cash-generating units (including the carrying amount
of the goodwill allocated thereto) compared to the recoverable amount; if the recoverable
amount of said cash-generating units or groups of units is below the carrying amount thereof,
The impairment loss are first deducted from the carrying amount of the corporate assets and
goodwill which have been allocated to the cash-generating unit or group of units, and then
deducted from the carrying amount of the remaining assets pro rata with goodwill excluded
from consideration.
After a loss of asset impairment has been recognized, it is not be reversed in future accounting
periods.
4.18 Amortization methods of long-term prepaid expenses
Long term prepaid expenses are mortized over the useful economic life on a straight line
basis.
Amortization period:
Land requisition fee 50 years
Land lease prepayment 50 years
Greening fee 5 years
Others 50 years
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4.19 Estimated liabilities
4.19.1 Recognition standards of estimated liabilities
Besides the contingent consideration or liabilities through merger and acquisition, contingent liabilities
should be recognized when and only when:
(i) The group has a present obligation as a result of a past event;
(ii) It is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; and
(iii) A reliable estimate can be made of the amount of the obligation.
4.19.2 Measurement methods of estimated liabilities
The estimated liabilities are measured at the best estimate of the expenditure required to settle the
present obligation at the balance sheet date, taking into consideration of the risks, uncertainties and time
value of money. The book value of contingent liabilities is reviewed at each balance sheet date.
Whether there is any objective evidence indicating that the book value cannot reflect the best estimated
amount, adjustments should be make to the book value.
The acquiree’s contingent liabilities through business combination is initial recognized at fair value,
and its subsequent measurement is recognized at the higher of estimated value and the initial cost less
any accumulated amortization.
4.20 Revenue
Revenue is recognized when it is probable that the economic benefits will flow to the Group
and when the revenue can be measured reliably, on the following bases:
Revenue from the sale of goods
When the significant risks and rewards of ownership have been transferred to the buyer, provided that
the Group maintains neither managerial involvement to the degree usually associated with ownership,
nor effective control over the goods sold, and cost of sales can be measured reliably. The amount of
revenue arising on sale of goods is determined by agreement between the entity and the buyer or user
of the asset, except for those without fair value according to the received or receivable contract or
agreement price.The contract or agreement price is collected by the way of deferral. Revenue with
financing nature is measured at the fair value of the consideration received or receivable.
Rendering of service
When the outcome of a transaction involving the rendering of services can be estimated reliably,
revenue associated with the transaction shall be recognized by reference the stage of completion of the
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the
following conditions are satisfied:
(i) The amount of revenue can be measured reliably;
(ii) It is probable that the economic benefit associated with the transaction will flow to the entity;
(iii) The stage of completion of the transaction at the reporting date can be measured reliably; and
(iv) The costs incurred for the transaction and the costs to complete the transaction can be measured
reliably.
Interest income
Interest income is measured based on the borrowing periods and effective interest rate.
4.21 Government grants
4.21.1 Type
Government grants refers to monetary or non-monetary assets received by an enterprise from the
government, but excludes capital invested in the Group by the government that gives the government
ownership rights. Government grants include grants related with assets and grants related with income.
Government grants are recognized where there is reasonable assurance that the grant will be received
and all attaching conditions will be complied with.
4.21.2 Accounting treatment method
Monetary grants are measured on the basis of the amount received or the amount receivable.
Non-monetary grants are measured based on the fair value of relevant assets, where fair value cannot be
acquired reliably, the grants are measured based on nominal amount. Where the grant relates to an asset,
the fair value is credited to a deferred income account and is released to the income statement over the
expected useful life of the relevant asset by equal annual installments. Those to be used as
compensation for future expenses or losses are recognized as deferred income and are be recorded in
the profit and loss account for the period where the relevant expenses are recognized; or Those to be
used as compensation for relevant expenses or losses already incurred are recorded directly in the profit
and loss account for the current period. Grant which measured at nominal amount, should be recorded
in income statement.
4.22 Deferred income tax assets and deferred income tax liabilities
Income tax comprises current and deferred tax. Income tax is recognized in the income statement, or in
equity if it relates to goodwill generated from merger or affairs causing recognition to equity.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Current income tax liabilities or assets for the current and prior periods of this group are measured
according to the income tax amount to be paid or returned that calculated as the regulation of tax law.
Deferred income tax is provided, using the liability method, on all temporary differences at the balance
sheet date between the tax bases of assets and liabilities or items not recognized as assets or liabilities
but can be measure at tax bases and their carrying amounts.
4.22.1 Reference for recognizing deferred income tax assets
Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilized except:
(i) where the deferred tax asset relating to the deductible temporary differences arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
(ii) in respect of deductible temporary differences associated with interests in subsidiaries, associates
and joint ventures, deferred tax assets are only recognized to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available
against which the temporary differences can be utilized.
4.22.1 Reference for recognizing deferred income tax liabilities
Deferred tax liabilities are recognized for all taxable temporary difference, except:
(i) where the deferred tax liability arises from goodwill or the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
(ii) in respect of taxable temporary differences associated with interests in subsidiaries, associates and
joint ventures, where the timing of the reversal of the temporary differences can be controlled and
it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the balance sheet date.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilized. At each reporting date, the entity re-assesses unrecognized
deferred tax assets. The entity recognizes a previously unrecognized deferred tax asset to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.
4.23 Operating leases and financial leases
4.23.1 Accounting treatment of operating leases
Leases that transfer substantially all the rewards and risks of ownership of assets to the Group, are
accounted for as finance leases, otherwise are accounted for as operating leases.
As a lessee to operate leasing business
Rental expenses under the operating leases are credited to related costs of the assets or the
income statement on the straight-line basis over the lease terms. Contingent rentals are
recorded in income statement of the current period upon actual accrual.
4.24 Changes in main accounting policies and accounting estimates
4.24.1 Changes in accounting policies
Nil
4.24.2 Changes in accounting estimates
Nil
4.25 Correction of previous accounting errors
4.25.1 Retrospective restatement method
Nil
4.25.2 Future application method
Nil
4.26 Other main accounting policies, accounting estimates and compiling method of financial
statement
Employee benefits
Employee benefits refer to all kinds of remunerations and other relevant reimbursements made by
enterprises to their employees in exchange for services of employees. During accounting periods
wherein an employee renders services to an enterprise, the Group recognized the benefits payable as a
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
liability. The benefits payable which will be matured over 1 year are discounted when it is material.
Pensions, medical insurance, unemployment insurance, other social insurance and housing fund are
recorded as cost of relevant assets or expenses for the current period.
If an Group terminates the labor relationship with any employee prior to the expiration of the relevant
labor contract or makes a severance package proposal with the purpose of enticing the employees to
willingly accept such a termination, the Group recognized the contingent liabilities to be incurred due
to severance pay, and recorded them in income statement of the current period.
The treatment for the early retirement planning is on the same basis to that of the termination benefits.
The salaries and the social insurance expenses for the period from the employee’s termination of
service and the normal retirement of these staffs are recognized as employee benefits payable when
meeting the above said retirement benefits recognition requirements, and recognized to income
statement of the current period.
5 Taxes
5.1 Main taxes and tax rate of the Company
Taxes Tax basis Tax rate
VAT is levied at 17% on the invoiced amount after deduction of eligible
Value added tax 17%
input VAT.
The consumption tax of the products of the Group, partial brandy, is
levied at quantity and price of gross turnover, namely levied at 20% on
Consumption tax 10%-20%
taxable revenue and RMB 1,000 yuan per ton. For all other products, the
consumption tax is levied at 10% on taxable revenue.
Business tax The Group is subject to a business tax of 5% on its taxable revenue. 5%
City development tax Levied at 7% of total business tax payment. 7%
The Group is subject to a enterprise income tax rate of 25% on its taxable
Enterprise income tax 25%
income.
5.2 Tax incentives and relative permit
Ningxia Changyu Grape Growing Co., Ltd., a subsidiary of the Company, whose principal activity is grape
growing, is incorporated in Yongning County, Ningxia Hui Autonomous Region. According to clause 27 of
PRC Enterprise Income Tax and clause 86 of PRC Enterprise Income Tax Measures for Implementation, the
company enjoys an exemption of enterprise income tax.
The subsidiary of the Company Xinjiang Tianzhu Wine Co., Ltd. is an enterprise engaged in the production
and sales of bulk wine incorporated in Shihezi City, Xinjiang Uygur Autonomous Region. In accordance with
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
relevant regulations of Notice concerning Issuing Circular on Preferential Business Income Tax Polices for
Newly Established Enterprises in Underprivileged Areas of Xinjiang (Provisional) (Cai Shui [2011] No. 60),
and Notice of Financial & Tax Policies to Improve the Development of Agricultural Product Manufacturing
Industry (Xin Zheng Fa [2010] No. 105), the company enjoys preferential business income tax policies. From
the year, the company got the first operating revenue, from 2012 to 2015, the company shall be exempted
from local enterprise income tax based on the preferential policy of enterprise income tax rate at 15%. The
applicable tax rate in this year is 9%.
The subsidiary of the Company Xinjiang Changyu Baron Balboa Chateau Co., Ltd. is an enterprise engaged
in the production and sales of bulk wine incorporated in Shihezi City, Xinjiang Uygur Autonomous Region.
In accordance with relevant regulations of Notice concerning Issuing Circular on Preferential Business
Income Tax Polices for Newly Established Enterprises in Underprivileged Areas of Xinjiang (Provisional)
(Cai Shui [2011] No. 60), and Notice of Financial & Tax Policies to Improve the Development of Agricultural
Product Manufacturing Industry (Xin Zheng Fa [2010] No. 105), the company enjoys preferential business
income tax policies. From the year, the company got the first operating revenue, from 2011 to 2015, the
company shall be exempted from local enterprise income tax based on the preferential policy of enterprise
income tax rate at 15%. The applicable tax rate in this year is 9%.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
6 Business combination & consolidated financial statements
6.1 Particulars of the subsidiaries
6.1.1 Subsidiaries acquired by establishment or investment
Unit: Yuan
Balance after the owner’s
Amount for
equity in the parent company
Other balance counteracting
Actual Whether to counteracts the losses of
included into Proportion Proportion Interests of minority
Type of the Registered investment at consolidate minority shareholders in this
Name of the subsidiary Registered place Business nature Business scope the net in shares of voting minority shareholders’
subsidiary capital the end of financial term higher than their
investment to (%) power (%) shareholders profits/losses in the
term statements owner’s equity in the
the subsidiary interests of minority
subsidiaries at the beginning
shareholders
of year
Yantai Changyu
Pioneer Vehicular Yantai City,
Wholly-owned
Transport Co., Ltd. Shandong Province, Transportation 300,000 Vehicle transportation service 300,000 100% 100% Yes
subsidiary
(“Vehicular China
Transportation”)
Beijing Changyu Sales
Wholly-owned
and Distribution Co., Beijing City, China Sales 1,000,000 Sales of wine 1,000,000 100% 100% Yes
subsidiary
Ltd. (“Beijing Sales”)
Yantai Kylin Packaging Yantai City,
Wholly-owned Production of packaging
Co., Ltd. (“Kylin Shandong Province, Manufacturing 15,410,000 23,176,063 100% 100% Yes
subsidiary materials
Packaging”) (b) China
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Balance after the owner’s
Amount for
equity in the parent company
Other balance counteracting
Actual Whether to counteracts the losses of
included into Proportion Proportion Interests of minority
Type of the Registered investment at consolidate minority shareholders in this
Name of the subsidiary Registered place Business nature Business scope the net in shares of voting minority shareholders’
subsidiary capital the end of financial term higher than their
investment to (%) power (%) shareholders profits/losses in the
term statements owner’s equity in the
the subsidiary interests of minority
subsidiaries at the beginning
shareholders
of year
Yantai Changyu-Castel
Yantai City,
Wine Chateau Co., Ltd. Holding USD
Shandong Province, Manufacturing Production and sales of wine 28,968,100 70% 100% Yes 12,365,016
(“Changyu Chateau”) subsidiary 5,000,000
China
(c)
Changyu (Jingyang) Jingyang County,
Wholly-owned
Pioneer Wine Co., Shaanxi Province, Manufacturing 1,000,000 Production and sales of wine 1,000,000 100% 100% Yes
subsidiary
Ltd. (“Jingyang Wine”) China
Yantai Changyu Yantai City,
Wholly-owned
Pioneer Wine Sales Co., Shandong Province, Sales 8,000,000 Sales of wine 8,000,000 100% 100% Yes
subsidiary
Ltd. (“Sales Company”) China
Langfang Development
Zone Castel-Changyu Holding Langfang City, Hebei USD
Manufacturing Production and sales of wine 19,835,730 49% 100% Yes 22,702,522
Wine Co., Ltd. subsidiary Province, China 6,108,818
(“Langfang Castel”) (d)
Changyu (Jingyang)
Jingyang County,
Pioneer Wine Sales Wholly-owned
Shaanxi Province, Sales 1,000,000 Sales of wine 1,000,000 100% 100% Yes
Co., Ltd. (“Jingyang subsidiary
China
Sales”)
Langfang Changyu Wholly-owned Langfang City, Hebei Sales 1,000,000 Sales of wine 1,000,000 100% 100% Yes
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Balance after the owner’s
Amount for
equity in the parent company
Other balance counteracting
Actual Whether to counteracts the losses of
included into Proportion Proportion Interests of minority
Type of the Registered investment at consolidate minority shareholders in this
Name of the subsidiary Registered place Business nature Business scope the net in shares of voting minority shareholders’
subsidiary capital the end of financial term higher than their
investment to (%) power (%) shareholders profits/losses in the
term statements owner’s equity in the
the subsidiary interests of minority
subsidiaries at the beginning
shareholders
of year
Pioneer Wine Sales Co., subsidiary Province, China
Ltd. (“Langfang
Sales”).
Shanghai Changyu
Sales and Distribution Wholly-owned
Shanghai City, China Sales 1,000,000 Sales of wine 1,000,000 100% 100% Yes
Co., Ltd. (“Shanghai subsidiary
Sales”)
Beijing Changyu AFIP
Holding
Wine Chateau Co., Ltd. Beijing City, China Manufacturing 110,000,000 Production and sales of wine 77,000,000 70% 100% Yes 35,293,868
subsidiary
(“Beijing Chateau”) (e)
Yantai Changyu Wine Yantai City,
Wholly-owned
Sales Co., Ltd. ( “Wine Shandong Province, Sales 5,000,000 Sales of wine 5,000,000 100% 100% Yes
subsidiary
Sales”) China
Yantai Changyu
Yantai City,
Pioneer International Wholly-owned Import and export of goods and
Shandong Province, Sales 5,000,000 5,000,000 100% 100% Yes
Co., Ltd. (“Pioneer subsidiary technologies
China
International”)
Hangzhou Changyu Hangzhou City,
Wholly-owned Wholesale and retail of
Wine Sales Co., Ltd. Zhejiang Province, Sales 500,000 500,000 100% 100% Yes
subsidiary stereotypes packaging food
(“Hangzhou Changyu”) China
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Balance after the owner’s
Amount for
equity in the parent company
Other balance counteracting
Actual Whether to counteracts the losses of
included into Proportion Proportion Interests of minority
Type of the Registered investment at consolidate minority shareholders in this
Name of the subsidiary Registered place Business nature Business scope the net in shares of voting minority shareholders’
subsidiary capital the end of financial term higher than their
investment to (%) power (%) shareholders profits/losses in the
term statements owner’s equity in the
the subsidiary interests of minority
subsidiaries at the beginning
shareholders
of year
Ningxia Changyu Yinchuan City,
Grape Growing Co., Wholly-owned Ningxia Hui Planting and purchase of
Planting 1,000,000 1,000,000 100% 100% Yes
Ltd. (“Ningxia subsidiary Autonomous Region, grape
Growing”) China
Huanren Changyu Huanren Manchu
National Wine Sales Wholly-owned Autonomous County,
Sales 2,000,000 Wholesale and retail of wine 2,000,000 100% 100% Yes
Co., Ltd. (“National subsidiary Liaoning Province,
Wines”) China
Liaoning Changyu Ice
Holding Benxi City, Liaoning Production and sales of ice
Wine Chateau Co., Ltd. Manufacturing 26,300,000 13,413,000 51% 100% Yes 16,959,292
wine
subsidiary Province, China
(“Ice Chateau”) (f)
Yantai Development Yantai City,
Zone Changyu TradingWholly-owned
Shandong Province, Sales 5,000,000 Wholesale and retail of wine 5,000,000 100% 100% Yes
Co., Ltd. (“Development
subsidiary
Zone Trading”)
China
Shenzhen Changyu
Wine Marketing Ltd. Wholly-owned Futian District,
Sales 500,000 Wholesale and retail of wine 500,000 100% 100% Yes
(“Shenzhen subsidiary Shenzhen City, China
Marketing”)
Yantai Fushan District Wholly-owned Yantai City,
Sales 5,000,000 Wholesale and retail of wine 5,000,000 100% 100% Yes
Changyu Trading Co., subsidiary Shandong Province,
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Balance after the owner’s
Amount for
equity in the parent company
Other balance counteracting
Actual Whether to counteracts the losses of
included into Proportion Proportion Interests of minority
Type of the Registered investment at consolidate minority shareholders in this
Name of the subsidiary Registered place Business nature Business scope the net in shares of voting minority shareholders’
subsidiary capital the end of financial term higher than their
investment to (%) power (%) shareholders profits/losses in the
term statements owner’s equity in the
the subsidiary interests of minority
subsidiaries at the beginning
shareholders
of year
Ltd. (“Fushan Trading”) China
Beijing AFIP Meeting Meeting service, food,
Wholly-owned Miyun District,
Center (“Meeting Service 500,000 accommodation, tourism and 500,000 100% 100% Yes
subsidiary Beijing City, China
Center”) (g) sales of souvenir
Tourism and culture
Beijing AFIP Tourism
Holding Miyun District, communication, development
and Culture Company Tourism 500,000 350,000 70% 100% Yes 2,966,399
subsidiary Beijing City, China of tourist resources and
(“AFIP Tourism”) (h)
meeting service
Production and sales of wine,
Ningxia Changyu Yinchuan Economic
Wholly-owned packaging materials and
Pioneer Wine Co., Ltd. and Technological Manufacturing 1,000,000 1,000,000 100% 100% Yes
subsidiary planting, processing and
(“Ningxia Wine”) Development Zone
purchase of grape
Yantai Changyu Tinlot
Wholly-owned Wholesale and
Chateau Co., Ltd. YEDA 80,000,000 Pre-packaged food 80,000,000 100% 100% Yes
subsidiary retail
(“Tinlot Chateau”)
Qingtongxia City,
Qing Tong Xia Changyu Wholly-owned Ningxia Hui Wholesale and retail of wine
Wine Marketing Ltd. Sales 500,000 500,000 100% 100% Yes
(“Qing Tong Xia Sales) subsidiary Autonomous Region, and business agency
China
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Balance after the owner’s
Amount for
equity in the parent company
Other balance counteracting
Actual Whether to counteracts the losses of
included into Proportion Proportion Interests of minority
Type of the Registered investment at consolidate minority shareholders in this
Name of the subsidiary Registered place Business nature Business scope the net in shares of voting minority shareholders’
subsidiary capital the end of financial term higher than their
investment to (%) power (%) shareholders profits/losses in the
term statements owner’s equity in the
the subsidiary interests of minority
subsidiaries at the beginning
shareholders
of year
Xinjiang Changyu Shihezi City,
Baron Balboa Chateau Wholly-owned Xinjiang Uygur Production and sales of wine
Manufacturing 150,000,000 150,000,000 100% 100% Yes
Co., Ltd. (“Shihezi subsidiary Autonomous Region, (bulk wine)
Chateau”) China
Yinchuan Economic Production, processing and
and Technological sales of wine, distilled wine,
Ningxia Changyu Ross
Wholly-owned Development Zone, fruit wine, non-alcohol
15th Chateau Co., Ltd. Manufacturing 2,000,000 2,000,000 100% 100% Yes
subsidiary Ningxia Hui beverage and packaging
(“Ningxia Chateau”)
Autonomous Region, materials, tourism, meeting
China reception and catering service
Shaanxi Changyu Ruina Xianyang City, Planting of grape, processing
Wholly-owned
Chateau Co., Ltd. Shaanxi Province, Manufacturing 20,000,000 of wine, tourism and 20,000,000 100% 100% Yes
subsidiary
(“Chang’an Chateau”) China sightseeing
Yantai Changyu Wine
Yantai City, Manufacturing of brandy,
Research and Wholly-owned
Shandong Province, Manufacturing 500,000,000 wine and sparkling wine and 500,000,000 100% 100% Yes
Development Co., Ltd. subsidiary
China preparation of sales project
(Development Centre)
Changyu (Huanren) Wholly-owned Beidianzi Town, Preparation for Preparation for wine-making
5,000,000 5,000,000 100% 100% Yes
Wine Co., Ltd. subsidiary Huanren Manchu wine-making project
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Balance after the owner’s
Amount for
equity in the parent company
Other balance counteracting
Actual Whether to counteracts the losses of
included into Proportion Proportion Interests of minority
Type of the Registered investment at consolidate minority shareholders in this
Name of the subsidiary Registered place Business nature Business scope the net in shares of voting minority shareholders’
subsidiary capital the end of financial term higher than their
investment to (%) power (%) shareholders profits/losses in the
term statements owner’s equity in the
the subsidiary interests of minority
subsidiaries at the beginning
shareholders
of year
(“Huanren Wine”) Autonomous County project
Shihezi City,
Xinjiang Changyu Wine
Wholly-owned Xinjiang Uygur Wholesale of pre-packaged
Sales Co., Ltd. Sales 10,000,000 10,000,000 100% 100% Yes
subsidiary Autonomous Region, food
(“Xinjiang Sales”)
China
Shihezi City,
Xinjiang Changyu Wine
Wholly-owned Xinjiang Uygur Manufacturing of wine and
Co., Ltd. (“Xinjiang Manufacturing 10,000,000 10,000,000 100% 100% Yes
subsidiary Autonomous Region, fruit wine (bulk wine)
Wine”)
China
Planting of fruit, flowers and
Beijing Changyu AFIP
oil crops; poultry raising;
Eco-agriculture
Wholly-owned Miyun County, sales of fresh fruit, rough
Development Co., Ltd. Planting 1,000,000 1,000,000 100% 100% Yes
subsidiary Beijing City dried fruit and nut; tourism
(“Agricultural
resource development; and
Development”)
technology consultation
Ningxia Changyu Yinchuan City,
Wholly-owned Wholesale and retail of
Trading Co., Ltd. Ningxia Hui Sales 1,000,000 1,000,000 100% 100% Yes
subsidiary pre-packaged food
(“Ningxia Trading”) Autonomous Region
Shaanxi Changyu Ruina Wholly-owned Xianyang City, Production and sales of wine;
Sales 3,000,000 3,000,000 100% 100% Yes
Wine Sales Co., Ltd. subsidiary Shaanxi Province and development of
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Balance after the owner’s
Amount for
equity in the parent company
Other balance counteracting
Actual Whether to counteracts the losses of
included into Proportion Proportion Interests of minority
Type of the Registered investment at consolidate minority shareholders in this
Name of the subsidiary Registered place Business nature Business scope the net in shares of voting minority shareholders’
subsidiary capital the end of financial term higher than their
investment to (%) power (%) shareholders profits/losses in the
term statements owner’s equity in the
the subsidiary interests of minority
subsidiaries at the beginning
shareholders
of year
(“Shaanxi Sales”) agricultural tourism
attractions
Penglai Changyu Wine
Wholly-owned Penglai City,
Sales Co., Ltd. Sales 5,000,000 Wholesale and retail of wine 5,000,000 100% 100% Yes
subsidiary Shandong Province
(“Penglai Wine”)
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Notes: (b) Kylin Packaging is a Sino-foreign joint venture founded on September 29, 1999 by the
Company and a foreign investor. On July 4, 2011, the Company signed the Equity Transfer
Agreement with the foreign investor of Kylin Packaging, holding 50% of Kylin’s shares with
RMB 15,392,250 yuan as consideration. By August 23, 2011, the Company has completed the
capital contribution pursuant to the Equity Transfer Contract, and Kylin has become a subsidiary
wholly owned by the Company. On December 31, 2012, the change formalities of relevant
business and taxation registration were completed.
(c) Changyu Chateau is a Sino-foreign joint venture established by the Company and a foreign
investor. Pursuant to an operation contract renewed by the Company and Changyu Chateau on
December 16, 2012, the Company is entrusted to manage Changyu Chateau by paying contracting
fees and therefore has the full power to control its strategic operating, investing and financing
policies. The operation agreement will terminate on December 31, 2022.
(d) Langfang Castel is a Sino-foreign joint venture established by the Company and a foreign investor.
Pursuant to the agreement renewed by the Company and Langfang Castel on December 16, 2012,
the Company is entrusted to manage Langfang Castel by paying contracting fees and therefore has
the full power to control its strategic operating, investing and financing policies, therefore the
financial statements of Langfang Castel are consolidated in the Group’s financial statements. The
operation agreement will terminate on December 31, 2022.
(e) Beijing Chateau is a limited liability company established by the Company and a domestic
investor. Pursuant to an operation contract signed by the Company and Beijing Chateau, the
Company is entrusted to manage Beijing Chateau by paying contracting fees and therefore has the
full power to control its strategic operating, investing and financing policies. The operation
agreement will terminate on September 2, 2019.
(f) Ice Chateau is a Sino-foreign joint venture established by the Company and a foreign investor.
Pursuant to the agreement signed by the Company, Ice Chateau and the foreign investor, the
Company is entrusted to manage Ice Chateau by paying contracting fees and therefore has the full
power to control its strategic operating, investing and financing policies. The operation agreement
will terminate at December 31, 2016
(g) Conference Center is a subsidiary of Beijing Chateau. Pursuant to an operation contract
signed by the Company and Beijing Chateau, the Company is entrusted to manage Changyu
Chateau by paying contracting fees and therefore has the full power to control its strategic
operating, investing and financing policies. The operation agreement will terminate on September
2, 2019.
(h) AFIP Tourism is a limited liability company established by the Company and a domestic investor.
Pursuant to an operation contract signed by the Company and AFIP, the Company is entrusted to
manage AFIP by paying contracting fees and therefore has the full power to control its strategic
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
operating, investing and financing policies. The operation contract will terminate on September 2,
2019.
6.1.2 Subsidiary acquired from a business combination under non-common control
Unit: Yuan
Balance
after the
owner’s
equity in
the parent
Amount for company
Other counteracti counteracts
balance Whether ng minority the losses
Actual included Proportio to shareholder of minority
Name of Type of Proportio Interests of
investme into the n of consolida s’ shareholde
the the Registered Business Registere Business n in minority
nt at the net voting te profits/losse rs in this
subsidiar subsidiar place nature d capital scope shares shareholde
end of investme power financial s in the term
y y (%) rs
term nt to the (%) statement interests of higher than
subsidiar s minority their
y shareholder owner’s
s equity in
the
subsidiarie
s at the
beginning
of year
Xinjiang
Shihezi
Tianzhu
City,
Wine Holding Productio
Xinjiang
Co., Ltd. subsidiar Manufacturi 75,000,00 n and 60,000,00
Uygur 60% 100% Yes 56,093,912
(“Xinjian y ng 0 sales of 0
Autonomo
g wine
us Region,
Tianzhu”
China
) (a)
Note: (a) Xinjiang Tianzhu is a subsidiary of the Company by merger and acquisition on August 31,
2009, whose 60% of the shares are held by the Company. Pursuant to an operation contract signed
by the Company and Xinjiang Tianzhu, the Company is entrusted to manage Xinjiang Chateau by
paying contracting fees and therefore has the full power to control its strategic operating, investing
and financing policies. The operation agreement will terminate on December 31, 2018.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
6.2 Changes in the scope of consolidated financial statements
The scope of consolidated financial statements isn’t changed.
7 Notes to consolidated financial statements
7.1 Monetary fund
Unit: Yuan
Ending sum Beginning sum
Item Convers Conversion
Foreign currency RMB Foreign currency RMB
ion rate rate
Cash on hand: -- -- 60,073 -- -- 48,894
RMB -- -- 60,073 -- -- 48,894
Cash in bank： -- -- 2,227,123,264 -- -- 2,227,421,934
RMB -- -- 2,227,123,264 -- -- 2,227,421,934
Other monetary funds: -- -- -- --
RMB -- -- -- --
Total -- -- 2,227,183,337 -- -- 2,227,470,828
As at June 30, 2013, the monetary fund with restricted ownership of the Group is RMB 2,768,854 yuan,
which is the company’s housing fund (December 31, 2012: RMB 2,652,083 yuan).
As at June 30, 2013, the Group has no monetary fund that is deposited beyond the boundaries (December 31,
2012：Nil).
The interest income of bank current deposit shall be calculated according to the interest rate of current
deposit. The maturity terms of short-term time deposit range from 3 months to 1 year, which shall be
determined according to the cash demand of the Group. The interest income shall be calculated according to
the interest rate of time deposit.
The balance of time deposits over three months as at 30 June 2013 of the Group is RMB 755,392,728 yuan
(December 31, 2012: RMB 662,524,719 yuan), with maturity terms ranging from 3 months to 1 year, and the
interest rates ranging from 3.05%-3.3%.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.2 Bills receivable
7.2.1 Classification of bills receivable
Unit: Yuan
Type Ending sum Beginning sum
Bank acceptance bill 163,517,664 92,635,701
Total 163,517,664 92,635,701
7.2.2 Pledged bills receivable at the term end
Nil
7.2.3 Bills receivable reclassified as accounts receivable due to the default of drawer
Nil
7.2.4 Bills receivable endorsed to the third parties but not yet matured by the Company at the term
end are as follows:
Unit: Yuan
Drawer Issuing date Maturity date Amount Remark
Jinan Luye Trading Co., Ltd. February 5, 2013 August 4, 2013 2,700,000
Jinan Zeya Chateau Co., Ltd. February 5, 2013 August 5, 2013 1,270,000
Yantai Changyu Glass Factory February 25, 2013 July 25, 2013 880,000
Shandong Xinxing Group Co., Ltd. February 4, 2013 August 4, 2013 660,000
Jinan Huangjia Wine Industry Co.,
January 31, 2013 July 31, 2013 620,000
Ltd.
Total -- -- 6,130,000 --
7.3 Interest receivable
7.3.1 Interest receivable
Unit: Yuan
Item Beginning sum Increase Decrease Ending sum
Bank fixed deposits
7,215,854 11,796,128 8,276,313 10,735,669
interest
Total 7,215,854 11,796,128 8,276,313 10,735,669
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.3.2 As at June 30, 2013, there is no overdue interest.
7.4 Trade receivable
7.4.1 Trade receivable disclosed by type
Unit: Yuan
Ending sum Beginning sum
Book balance Bad debt provision Book balance Bad debt provision
Type
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
(%) (%) (%) (%)
Trade receivable of
significant single amount
54,910,060 46.07% 73,711,433 54.51%
and single accrued bad
debt provision
Trade receivable of
insignificant single
64,287,668 53.93% 61,505,951 45.49%
amount and single accrued
bad debt provision
Total 119,197,728 -- -- 135,217,384 -- --
The credit term of account receivable is normally one month. Major customers can be granted a credit term
up to three months. The trade receivable balances are interest free.
The age of the trade receivable is within 1 year.
As at June 30, 2013, there is no bad debt provision for trade receivable in this Group (December 31, 2012:
Nil).
7.4.2 Trade receivable transferred back or received in this term
Nil
7.4.3 Trade receivable actually cancelled after verification in this term
Nil
7.4.4 Trade receivable due from shareholders with voting rights of 5% (including 5%) or above in this term
Nil
7.4.5 Top 5 units of trade receivable
Unit: Yuan
Relationship with the Percentage of total trade
Unit Amount Period
Company receivable (%)
Nonggongshang
Supermarket (Group) Third party Within 1 year
Co., Ltd. 14,102,447 11.83%
Beijing Wumei Third party Within 1 year
Commercial Group Co., 8,325,993 6.99%
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Ltd.
Lianhua Supermarket
Third party Within 1 year
Holdings Co. Ltd. 8,044,911 6.75%
Jiangsu Hengxing Wine
Third party Within 1 year
Co., Ltd. 7,526,288 6.31%
Shanghai Lianjia
Third party Within 1 year
Supermarket Co., Ltd. 7,255,800 6.09%
Total -- 45,255,439 -- 37.97%
7.4.6 Trade receivable from related parties
Unit: Yuan
Percentage of total trade
Unit Relationship with the Company Amount
receivable (%)
Yantai Zhongya
Under the control of the same
Pharmaceutical Tonic Wine
parent company
Co., Ltd 2,632,780 2.21%
Yantai Changyu Travelling Under the control of the same
28,730 0.02%
Co., Ltd. parent company
Yantai Changyu International
Under the control of the same
Window of the Wine City 79,240 0.07%
parent company
Company Limited
Total -- 2,740,750 2.30%
7.4.7 Trade receivable terminating confirmation
Nil
7.5 Other trade receivable
7.5.1 Other trade receivable disclosed by type
Ending sum Beginning sum
Book balance Bad debt provision Book balance Bad debt provision
Type
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
(%) (%) (%) (%)
Other trade receivable of
significant single amount 11,120,6
11,120,600 21.87% 11,120,600 100% 11,120,600 28.1% 100%
and single accrued bad 00
debt provision
Other trade receivable of
insignificant single
amount and single accrued
bad debt provision
Undue value not
39,733,336 78.13% 28,462,945 71.9%
decreased
11,120,6
Total 50,853,936 -- 11,120,600 -- 39,583,545 -- --
00
Other trade receivable of significant single amount and single accrued bad debt provision at the end
of term:
Unit: Yuan
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Other trade receivable Book balance Bad debt Accrued proportion (%) Reason
Tiantong Securities Co., This company is in
8,000,000 8,000,000 100%
Ltd. bankruptcy liquidation.
The accounting age is
Jingyang County Finance over three years and
3,120,600 3,120,600 100%
Bureau there is little possibility
to take it back.
Total 11,120,600 11,120,600 -- --
7.5.2 Other trade receivable transferred back or received in this term
Nil
7.5.3 Other trade receivable actually cancelled after verification in this term
Nil
7.5.4 Other trade receivable due from shareholders with voting rights of 5% (including 5%) or above in this
term
Unit: Yuan
Ending sum Beginning sum
Unit Accrued amount for Accrued amount for
Book balance Book balance
bad debt bad debt
Yantai Changyu Group Co., Ltd. 2,454,000
Total 2,454,000
7.5.5 Nature or content of other trade receivable of significant amount
Unit: Yuan
Percentage of total other trade
Unit Amount Nature or content of fund
receivable (%)
Tiantong Securities Co., Ltd. 8,000,000 Investment fund 15.73%
YEDA Construction Industry
5,000,000 Guarantee fund 9.83%
Association
Jingyang County Finance
3,120,600 Seedling tree fund 6.14%
Bureau
Yantai Changyu Group Co.,
2,454,000 Rental prepaid, etc. 4.83%
Ltd.
Longkou Land Bureau 1,500,000 Guarantee fund 2.95%
Total 20,074,600 -- 39.48%
7.5.6 Top 5 units of other trade receivable
Unit: Yuan
Relationship with the Percentage of total other
Unit Amount Period
Company trade receivable (%)
91
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Tiantong Securities Co.,
Third party 8,000,000 More than 3 years 15.73%
Ltd.
YEDA Construction
Third party 5,000,000 Within 1 year 9.83%
Industry Association
Jingyang County Finance
Third party 3,120,600 More than 3 years 6.14%
Bureau
Yantai Changyu Group
Parent company 2,454,000 Within 1 year 4.83%
Co., Ltd.
Longkou Land Bureau Third party 1,500,000 Within 1 year 2.95%
Total 20,074,600 -- 39.48%
7.5.7 Other trade receivable from related parties
Nil
7.5.8 Other trade receivable terminating confirmation
Nil
7.6 Advanced payment
7.6.1 Advanced payment listed by age
Unit: Yuan
Ending sum Beginning sum
Age
Amount Proportion (%) Amount Proportion (%)
Within 1 year 47,574,385 100% 44,294,482 100%
1-2 years
2-3 years
More than 3 years
Total 47,574,385 -- 44,294,482 --
7.6.2 Top 5 units of advanced payment
Unit: Yuan
Relationship with
Unit Amount Time Reason for unsettlement
the Company
Shandong Yantai Wine Co., Ltd.
Third party 26,260,575 April 27, 2013 Failure to receive goods
Liquan Branch
Xinjiang Tianyu Winery Pioneer Co.,
Third party 4,809,365 January 23, 2013 Failure to receive goods
Ltd.
Xinjiang Yuyuan wine Co., Ltd Third party 3,929,728 January 24, 2013 Failure to receive goods
Qingdao Customs Third party 1,099,398 June 25, 2013 Failure to receive goods
Yantai Customs Third party 785,523 June 21,2013 Failure to receive goods
Total -- 36,884,589 -- --
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.6.3 Advanced payment due from shareholders with voting rights of 5% (including 5%) or above in this
term
Nil
7.7 Inventories
7.7.1 Inventory classification
Unit: Yuan
Ending sum Beginning sum
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 56,363,282 56,363,282 61,041,026 61,041,026
Goods in process 1,110,523,605 1,110,523,605 1,170,977,693 1,170,977,693
Commodity stocks 858,965,232 15,378,581 843,586,651 1,051,981,303 15,378,581 1,036,602,722
Turnover materials
Consumptive
biological assets
Total 2,025,852,119 15,378,581 2,010,473,538 2,284,000,022 15,378,581 2,268,621,441
7.7.2 Inventory depreciation provision
Unit: Yuan
Book balance at the Decrease Book balance at the
Inventory type Accrual
beginning of term Reversal Write off end of term
Raw materials
Goods in process
Commodity stocks 15,378,581 15,378,581
Turnover materials
Consumptive
biological assets
Total 15,378,581 15,378,581
7.7.3 Inventory depreciation provision
Reason for reversal of inventory Proportion of the reversed
Basis of accrued inventory
Item depreciation provision in this amount in this term in the end
depreciation provision
term balance of this inventory (%)
Raw materials
Predicted daily damage rate of
Goods in process
goods in process
Commodity stocks
Turnover materials
Consumptive biological assets
As at June 30, 2013, the book value of the inventories with restricted ownership of the Group is
RMB 20,688,000 yuan (December 31, 2012: RMB 25,726,686 yuan), which is the trust scheme for
93
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
the Group to transfer the corresponding usufruct to Shandong International Trust Corporation. Refer
to Financial and Accounting Reports 7.22.
There is no reversal of inventory impairment provision during Jan.-Jun. 2013 and 2012.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.8 Long-term equity investment
7.8.1 Particulars of long-term equity investment
Unit: Yuan
Explanation for
difference between the
Proportion of Proportion of
proportion of Accrued
shareholding in voting power in Impairment Cash
Invest to Calculation method Beginning balance Change End balance shareholding and depreciation
Investment cost the invested unit the invested unit provision dividend
proportion of voting provision
(%) (%)
power in the invested
unit
Yantai Dingtao Construction
Development Co., Ltd. Cost method 10,000,000 10,000,000 10,000,000 18% 18% 5,000,000
(“Yantai Dingtao”)
Total -- 10,000,000 10,000,000 10,000,000 -- -- -- 5,000,000
7.8.2 Restrictions of ability to transfer capitals to the invested company
Nil
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.9 Fixed assets
7.9.1 Particulars of fixed assets
Unit: Yuan
Book balance at the beginning of Book balance at the end of
Item Increase Decrease
term term
1. Total original book value 2,509,787,821 83,334,671 1,425,516 2,591,696,976
Including: buildings 1,376,818,737 15,554,742 349,666 1,392,023,813
Machineries and equipment 1,110,690,952 54,225,182 474,940 1,164,441,194
Motor vehicles 22,278,132 13,554,747 600,910 35,231,969
Book balance at the beginning of Book balance at the end of
-- Increase Accrual Decrease
term term
2. Total accumulated depreciation: 685,804,100 61,909,645 1,010,467 746,703,278
Including: buildings 184,409,573 18,762,456 203,172,029
Machineries and equipment 484,127,864 42,074,265 434,629 525,767,500
Motor vehicles 17,266,663 1,072,924 575,838 17,763,749
Book balance at the beginning of Book balance at the end of
-- --
term term
3. Total net book value of fixed
1,823,983,721 -- 1,844,993,698
assets
Including: buildings 1,192,409,164 -- 1,188,851,784
Machineries and equipments 626,563,088 -- 638,673,694
Motor vehicles 5,011,469 -- 17,468,220
--
4. Total impairment provision --
Including: buildings --
Machineries and equipment --
Motor vehicles --
96
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
--
5. Total book value of fixed assets 1,823,983,721 -- 1,844,993,698
Including: buildings 1,192,409,164 -- 1,188,851,784
Machineries and equipment 626,563,088 -- 638,673,694
Motor vehicles 5,011,469 -- 17,468,220
--
The depreciation amount of this term is RMB 61,909,645 yuan and the original value of the fixed
assets transferred from goods in process is RMB 50,708,363 yuan.
7.9.2 Temporarily idle fixed assets
Nil
7.9.3 Fixed assets under finance leases
Nil
7.9.4 Fixed assets under operating lease
Nil
7.9.5 Fixed assets for sale at the end of term
Nil
7.9.6 Fixed assets without property certificates
Reason for not receiving property
Item Time to get the property certificate
certificate
Fermentation Centre Office Tower,
Waiting for completion report
Laboratory Building and Workshop
Xinjiang Tianzhu Fermentation and
Waiting for completion report
Storage Workshop
Kylin Packaging Finish Goods Warehouse
Waiting for completion report
and Workshop
Ice Wine Chateau Office Building and
Waiting for completion report
Packing Workshop
97
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Property ownership certificate under
Beijing Chateau European Town
transaction
Property ownership certificate under
Beijing Chateau Office Town
transaction
Beijing Chateau Main Building, Reception Property ownership certificate under
Building and Service Building transaction
Office of Sales Company Provincial Property ownership certificate under
Sub-office transaction
Changyu (Jingyang) Vintage Workshop Waiting for completion report
Xinjiang Shihezi Chateau Main Building
Waiting for completion report
and Workshop
7.10 Construction in progress
7.10.1 Construction in progress
Unit: Yuan
Ending sum Beginning sum
Item
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
West Mountain Factory Construction Project 6,651,692 6,651,692 5,791,292 5,791,292
Wine Factory West Mountain Cellar Expanding Project 25,724,586 25,724,586 18,552,775 18,552,775
Champagne Factory Low-alcohol Reconstruction
Project with Production Capacity of 20,000 Tons
261,663 261,663
Fermentation Centre Machinery Reconstruction Project 76,810 76,810 34,930 34,930
Xinjiang Tianzhu Workshop Reconstruction Project 1,504,059 1,504,059 4,479,084 4,479,084
Yantai Chateau MuziguoVineyard Project 7,320,000 7,320,000 3,300,000 3,300,000
Beijing Chateau Continued Project 5,370,127 5,370,127 11,731 11,731
Sales Company Building Project 67,781,414 67,781,414 62,842,601 62,842,601
Langfang Castel Workshop Reconstruction Project 12,480,312 12,480,312 7,633,319 7,633,319
Jingyang Ferment Workshop Reconstruction Project 158,569 158,569
Ningxia United Brewing Workshop Project 1,464,202 1,464,202 1,556,490 1,556,490
98
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Shihezi Chateau Construction Project 158,137,401 158,137,401 156,451,724 156,451,724
Ningxia Chateau Construction Project 45,536,206 45,536,206 41,367,789 41,367,789
Xianyang Chateau Construction Project 336,576,997 336,576,997 261,525,502 261,525,502
R&D Center Construction Project 340,420,327 340,420,327 169,912,227 169,912,227
Tinlot Chateau Construction Project 103,856,930 103,856,930 91,790,388 91,790,388
Huanren Brewing Workshop Construction Project 9,997,174 9,997,174 7,317,174 7,317,174
Total 1,123,056,806 1,123,056,806 832,828,689 832,828,689
99
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.10.2 Changes of major construction in progress
Unit: Yuan
Including:
Transferred Accumulative Capitalization
Proportion capitalization
Beginning Other Construction capitalization ratio of interest Capital
Item Budget Increase to fixed decrease of project amount of Ending sum
sum progress amount of in this term source
assets input in interest in this
interest (%)
budget (%) term
West Mountain
Factory Construction 63,000,000 5,791,292 860,400 100.97% Self-financing 6,651,692
Project
Wine Factory West
Mountain Cellar 32,000,000 18,552,775 10,459,885 3,288,074 94.09% Self-financing 25,724,586
Expanding Project
Champagne Factory
Low-alcohol
Reconstruction
Project with
59,850,000 261,663 261,663 100.00% Self-financing
Production Capacity
of 20,000 Tons
Fermentation Centre
Machinery
Reconstruction 5,000,000 34,930 41,880 93.74% Self-financing 76,810
Project
Xinjiang Tianzhu
Workshop
Reconstruction 37,570,000 4,479,084 1,900,611 4,875,636 115.96% Self-financing 1,504,059
Project
Yantai Chateau
MuziguoVineyard 30,000,000 3,300,000 4,020,000 24.4% Self-financing 7,320,000
Project
Beijing Chateau
Continued Project
548,250,000 11,731 9,821,343 4,462,947 89.39% Self-financing 5,370,127
Sales Company
Building Project
106,350,000 62,842,601 4,938,813 117.44% Self-financing 67,781,414
Langfang Castel
Workshop
Reconstruction 19,727,000 7,633,319 4,846,993 63.27% Self-financing 12,480,312
Project
Jingyang Ferment
Workshop
Reconstruction
26,000,000 158,569 72.71% Self-financing 158,569
Project
100
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Including:
Transferred Accumulative Capitalization
Proportion capitalization
Beginning Other Construction capitalization ratio of interest Capital
Item Budget
sum
Increase to fixed decrease of project progress amount of
amount of
in this term source
Ending sum
assets input in interest in this
interest (%)
budget (%) term
Ningxia United
Brewing Workshop 58,700,000 1,556,490 187,028 279,316 98.02% Self-financing 1,464,202
Project
Shihezi Chateau
Construction Project
540,000,000 156,451,724 22,732,450 21,046,773 91.11% Self-financing 158,137,401
Ningxia Chateau
Construction Project
244,150,000 41,367,789 20,662,371 16,493,954 109.16% Self-financing 45,536,206
Xianyang Chateau
Construction Project
310,740,000 261,525,502 75,051,495 108.75% Self-financing 336,576,997
R&D Center
Construction Project
1,693,970,000 169,912,227 170,508,100 20.07% Self-financing 340,420,327
Tinlot Chateau
Construction Project
152,400,000 91,790,388 12,066,542 68.12% Self-financing 103,856,930
Huanren Brewing
Workshop 15,000,000 7,317,174 2,680,000 66.67% Self-financing 9,997,174
Construction Project
Total 3,942,707,000 832,828,689 340,936,480 50,708,363 -- -- -- -- 1,123,056,806
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.10.3 Impairment provision for construction in progress
As at June 30, 2013, there is no indication for impairment in construction in process of the Group,
so no provision is made (December 31, 2012: Nil).
7.11 Productive biological assets
7.11.1 Calculating by cost
Unit: Yuan
Book balance at the Book balance at the end
Item Increase Decrease
beginning of term of term
1. Plantation
Grape Seedling 39,681,580 19,795,268 397,769 59,079,079
2. Stock raising
3. Forestry
4. Fishery
Total 39,681,580 19,795,268 397,769 59,079,079
As at June 30, 2013, no ownership of the biological asset is restricted (December 31, 2012: Nil).
The productive biological assets of the Group are vines. The vines may suffer from scourge, plant
diseases and insect pests, market demand and other risk factors, which lead to impairment on assets.
The Group will adopt effective procedures to prevent plant diseases and insect pests, and strengthen
the management of trees and soils to safeguard the biological assets.
As at June 30, 2013, there is no indication that biological assets may be impaired, and no provision is
made (December 31 2012: Nil).
7.11.2 Calculating by fair value
Nil
7.12 Intangible assets
7.12.1 Particulars of intangible assets
Unit: Yuan
Book balance at the Book balance at the end
Item Increase Decrease
beginning of term of term
1. Total original book
303,490,962 9,183,238 312,674,200
value
Land use right 299,710,962 166,400 299,877,362
102
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Book balance at the Book balance at the end
Item Increase Decrease
beginning of term of term
Software use right 3,780,000 9,016,838 12,796,838
2. Total accumulated
25,197,040 2,940,030 28,137,070
amortization
Land use right 21,717,040 2,901,290 24,618,330
Software use right 3,480,000 38,740 3,518,740
3. Total net book value of
278,293,922 6,243,208 284,537,130
intangible assets
Land use right 277,993,922 -2,734,890 275,259,032
Software use right 300,000 8,978,098 9,278,098
4. Total depreciation
provision
Land use right
Software use right
Total book value of
278,293,922 6,243,208 284,537,130
intangible assets
Land use right 277,993,922 -2,734,890 275,259,032
Software use right 300,000 8,978,098 9,278,098
The amortization amount in this term is RMB 2,940,030 yuan.
As at June 30, 2013, there are no restricted intangible assets (December 31, 2012: Nil).
7.13 Long term prepaid expenses
Unit: Yuan
Reason for other
Item Beginning sum Increase Amortization Other decrease Ending sum
decrease
Land lease fees 63,541,467 268,838 656,585 63,153,720
Land-use fees 50,849,948 2,200,000 530,804 52,519,144
Afforestation fees 44,747,706 4,958,538 5,762,035 43,944,209
Other 1,732,739 20,833 1,711,906
Total 160,871,860 7,427,376 6,970,257 161,328,979 --
7.14 Deferred tax assets and liabilities
7.14.1 Deferred tax assets and liabilities aren’t presented in net amounts after setoff.
Confirmed deferred tax assets and liabilities
Unit: Yuan
Item Ending sum Beginning sum
Deferred tax assets:
Asset impairment provision 7,874,795 7,874,795
Organization cost
Deductible loss 14,503,979 10,064,437
Unrealized profits from inter-company
82,591,754 98,817,513
transactions
103
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Ending sum Beginning sum
Unpaid bonus 8,594,904 20,873,113
Early retirement benefit 5,595,469 6,178,176
Deferred income 6,178,835 6,568,104
Subtotal 125,339,736 150,376,138
Deferred tax liabilities:
Appraisement of trading financial instruments and
derivative financial instruments
Change of fair value of financial assets for sale
included in the capital reserve
Value Change
Fair value adjustment in business combination
5,336,115 5,336,115
under non-common control
Subtotal 5,336,115 5,336,115
Unconfirmed deferred tax assets
Unit: Yuan
Item Ending sum Beginning sum
Deductible temporary difference
Deductible loss 20,505,913 20,505,913
Total 20,505,913 20,505,913
Deductible losses not confirmed for deferred tax assets will expire in:
Unit: Yuan
Year Ending sum Beginning sum Remark
2012
2013 64,997 64,997
2014 19,077,494 19,077,494
2016 1,363,422 1,363,422
2017
Total 20,505,913 20,505,913 --
Taxable differences and deductible differences
Unit: Yuan
Temporary difference
Item
At the end of term At the beginning of term
Taxable difference
104
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Temporary difference
Item
At the end of term At the beginning of term
Fair value adjustment in business combination under non-common control 21,344,460 21,344,460
Subtotal 21,344,460 21,344,460
Deductible difference
Unrealized profits from inter-company transactions 395,270,055
330,367,020
Unpaid bonus 34,379,616 83,492,454
Early retirement benefit 22,381,875 24,712,704
Provision for impairment 31,499,181 31,499,181
Deductible loss 58,015,915 40,257,750
Deferred income 38,900,706 40,465,889
Subtotal 515,544,313 615,698,033
7.15 Provision for impairment of assets
Unit: Yuan
Book balance at the Decrease Book balance at
Item Increase
beginning of term Reversal Write off the end of term
1. Bad debt provision 11,120,600 11,120,600
2. Inventory impairment
provision 15,378,581 15,378,581
3. Provision for impairment of
financial assets for sale
4. Provision for impairment of
held-to-maturity investment
5. Provision for impairment of
long-term equity investment 5,000,000 5,000,000
6. Provision for impairment of
investment real estate
7. Provision for impairment of
fixed assets
8. Provision for impairment of
project materials
9. Provision for impairment of
construction in process
10. Provision for impairment
of productive biological assets
Including: Provision for
impairment of mature
productive biological assets
11. Provision for impairment
of oil-and-gas assets
12. Provision for impairment
of intangible assets
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
13. Provision for impairment
of business reputation
14. Other
Total 31,499,181 31,499,181
7.16 Other non-current assets
Unit: Yuan
Item Ending sum Beginning sum
Unconfirmed financing expenses 3,066,276 3,281,133
Receivable but uncollected biological assets
21,370,902 21,370,902
transfer expenses
Land-transferring fees paid in advance 3,528,000 3,528,000
Total 27,965,178 28,180,035
7.17 Trade payable
7.17.1 Particulars of trade payable
Unit: Yuan
Item Ending sum Beginning sum
Purchase goods and accept services 252,896,316 324,881,168
Total 252,896,316 324,881,168
7.17.2 Trade payable due from shareholders with voting rights of 5% (including 5%) or above in
this term
Nil
7.17.3 Payables of significant amount aged more than one year
As at June 30, 2013, the Group has no significant outstanding balances aged more than one year
(December 31, 2012: Nil).
7.18 Advances from customers
7.18.1 Particulars of advances from customers
Unit: Yuan
Item Ending sum Beginning sum
Advances from customers for selling goods 279,624,914 450,172,253
Total 279,624,914 450,172,253
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.18.2 Advances from customers due from shareholders with voting rights of 5% (including 5%) or
above in this term
Nil
7.18.3 Advances from customers of significant amount aged more than one year
As at June 30, 2013, the Group has no advances from customers of significant amount aged more
than one year (December 31, 2012: Nil).
7.19 Employee benefits payable
Unit: Yuan
Book balance at the Book balance at the end
Item Increase Decrease
beginning of term of term
1. Salaries and bonus 87,598,216 152,443,376 203,506,761 36,534,831
2. Staff benefit 3,433,416 3,433,416
3. Staff welfare 262,293 17,363,474 15,902,187 1,723,580
Medical insurance 57,516 3,958,095 3,624,688 390,923
Pension 202,487 11,903,577 10,956,379 1,149,685
Unemployment insurance 2,148 710,454 617,303 95,299
Injury insurance 142 448,803 403,021 45,924
Maternity insurance 342,545 300,796 41,749
4. Housing fund 294,914 3,646,030 3,251,751 689,193
5. Dismiss welfare 27,993,831 1,651,405 4,238,620 25,406,616
6. Other 24,335,673 2,731,871 1,761,743 25,305,801
Union fee and education
fee 2,018,390 2,728,271 1,758,143 2,988,518
Subsidy and allowance of
employees 22,317,283 3,600 3,600 22,317,283
Total 140,484,927 181,269,572 232,094,478 89,660,021
There is no amount in arrears in the employee compensation payable.
The union fee and education fee is RMB 1,758,143 yuan. Three is no non-monetary welfare. The
compensation for release of employees is RMB 4,238,620 yuan.
7.20 Tax payable
Item Ending sum Beginning sum
Value added tax -51,710,075 -21,005,478
Consumption tax 4,089,385 33,478,543
Business tax 511,267 1,041,384
Corporation income tax 201,300,593 405,075,954
Individual income tax 7,689,488 6,091,205
City construction tax 2,295,470 8,872,888
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Urban land use tax 912,621 1,180,572
Property tax 2,206,764 1,904,752
Other 1,901,065 7,444,756
Total 169,196,578 444,084,576
7.21 Other payables
7.21.1 Particulars of other payables
Unit: Yuan
Item Ending sum Beginning sum
Advertising expenses payable 91,486,688 20,434,958
Distributors deposit payable 207,812,559 210,775,654
Payables for equipment purchases, construction
46,365,467 51,846,156
costs and transportation charges
Payable for trademark usage of the Group 46,492,373 99,943,588
Payables for deposit of supplies 5,596,671 2,370,702
Other 88,313,601 85,279,053
Total 486,067,359 470,650,111
7.21.2 Other payable due from shareholders with voting rights of 5% (including 5%) or above in this term is
as follows:
Unit: Yuan
Unit Ending sum Beginning sum
Yantai Changyu Group Co., Ltd. 46,492,373 99,943,588
Total 46,492,373 99,943,588
7.21.3 Other payables of significant amount aged more than one year
Other payables of significant amount aged more than one year is distributor’s deposit with amount
of RMB 129,481,263 yuan, which isn’t paid after the preparation of the balance sheet.
7.22 Non-current liability mature within 1 year
7.22.1 Particulars of non-current liability mature within 1 year
Unit: Yuan
Item Ending sum Beginning sum
Long-term loan mature within 1 year
Bond payable mature within 1 year
Long-term account payable mature within 1 year 95,102,268 150,945,000
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Total 95,102,268 150,945,000
7.22.2 Long-term payable mature within 1 year
Unit: Yuan
Borrowing
Borrower Period Beginning sum Interest rate (%) Accrued interest End balance
requirement
Shandong October
International 2012-November 90,000,000 8.5% 5,102,268 95,102,268
Trust Corporation 2013
Pursuant to “Shandong Trust-Chateau Changyu AFIP Usufruct Transfer Contract of 2011 Tinlot
Cabernet Sauvignon Dry Red Wine” signed between the Company and Shandong International
Trust Corporation in October 2012, the Company transfers a special wine usufruct to the special
fund set by Shandong International Trust Corporation for RMB 90,000,000 yuan. The annual
interest rate is 8.5%, which will terminate in November 2013.
7.23 Other current liability
Unit: Yuan
Item Book balance at the end of term Book balance at the beginning of term
Deferred income 7,572,480 8,090,382
Total 7,572,480 8,090,382
The deferred incomes are as follows:
Deferred income Book balance at the end of term Book balance at the beginning of term
Government allowance related to the assets
Fund supporting major construction projects 2,408,472 2,404,874
Special fund for the development of emerging 2,404,308 2,300,808
industries and key industries
Other 2,759,700 3,384,700
Subtotal 7,572,480 8,090,382
7.24 Other non-current liability
Unit: Yuan
Item Book balance at the end of term Book balance at the beginning of term
Employee compensation payable 6,692,434 7,856,000
Deferred income 57,508,370 61,148,861
Total 64,200,804 69,004,861
7.24.1 As at June 30, 2013, the employee compensation payable is the bonus for excess profits and
the guarantee fund for working responsibility accrued on the basis of the operating income of 2011,
which will pay from 2014 to 2015.
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.24.2 The deferred incomes are as follows:
Item Book balance at the end of term Book balance at the beginning of term
Government allowance related to the assets
Fund supporting major construction projects 20,713,016 20,148,990
Special fund for the development of emerging 17,882,604 20,707,271
industries and key industries
Other 18,912,750 20,292,600
Subtotal 57,508,370 61,148,861
7.25 Share capital
Unit: Yuan
Increase or decrease (+,-)
Share
Beginning sum transferred Ending sum
Issue new
Allocate shares from Other Subtotal
shares
accumulation
fund
Total shares 685,464,000 685,464,000
7.26 Capital surplus
Unit: Yuan
Item Beginning sum Increase Decrease Ending sum
Capital premium (Share capital
557,222,454 557,222,454
premium)
Other capital surplus 4,916,588 4,916,588
Total 562,139,042 562,139,042
7.27 Surplus reserve
Unit: Yuan
Item Beginning sum Increase Decrease Ending sum
Legal surplus 342,732,000 342,732,000
Free surplus
Reserve fund
Enterprise expansion fund
Other
Total 342,732,000 342,732,000
In accordance with the Company Law of the People's Republic of China and the Articles of Association of
the Company, the Company is required to appropriate 10% of the net profit to the statutory surplus reserve
until the accumulated balance of the statutory surplus reserve reaches 50% of the registered share capital.
110
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
The Company can appropriate discretionary surplus reserve after appropriation of the statutory surplus
reserve. Discretionary surplus reserve can be utilized to offset the deficit or increase the share capital after
approval.
7.28 Retained profits
Unit: Yuan
Item Amount Drawing or distribution percentage
Retained profits at the end
of last year before 4,322,769,136 --
adjustment
Total retained profits at the
beginning of the year before
adjustment (increase listed --
with+ , and decrease listed
with -)
Retained profits at the
beginning of the year after 4,322,769,136 --
adjustment
Plus: Net profit for owner of
740,574,221 --
the parent company
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk
provision
Common dividend payable
Common dividend
transferred to share capital
Retained profits at the end
5,063,343,357 --
of term
As approved by the Shareholders’ Meeting of the Company, based on the issued share capital of 685,464,000
shares in 2012, the Company allocates RMB 11 yuan in cash (including tax) for every 10 shares to all
shareholders with total cash dividends of RMB 754,010,400 yuan.
7.29 Operating income and costs
7.29.1 Operating income and costs
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Major operating income 2,534,398,427 3,001,455,707
Other operating income 4,979,807 11,128,382
Operating cost 759,692,089 727,833,473
111
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
7.29.2 Major business (products)
Unit: Yuan
Amount incurred in this term Amount incurred in last term
Item
Operating income Operating cost Operating income Operating cost
Wine 1,945,801,619 529,717,257 2,429,357,282 510,014,889
Brandy 490,043,845 169,002,377 485,298,545 176,830,549
Champagne 20,164,376 12,640,620 19,269,509 9,096,072
Other 78,388,587 46,556,839 67,530,371 25,936,268
Total 2,534,398,427 757,917,093 3,001,455,707 721,877,778
7.29.3 Operating income of top 5 clients of the Company
Unit: Yuan
Proportion of total operating income of the
Client Major operating income
Company (%)
Lianhua Supermarket Holdings Co.,
Ltd. 17,009,675 0.67%
Nonggongshang Supermarket (Group)
Co., Ltd. 13,904,078 0.55%
Shanghai Lianjia Supermarket Co.,
Ltd. 9,493,182 0.37%
Shanghai Jingpu Food Co., Ltd. 6,581,921 0.26%
Jiangsu Hengxing Wine Co., Ltd. 5,891,459 0.23%
Total 52,880,315 2.08%
7.30 Taxes and surcharges
Unit: Yuan
Amount incurred in this Amount incurred in last
Item Charging standard
term term
Partial brandy is levied at quantity and
price of gross turnover. For all other
Consumption tax 73,055,560 89,603,762
products, the consumption tax is levied at
10% on taxable revenue.
Business Tax 1,314,203 2,273,845 Charged at 5% of the turnover
Charges at 7% of the turnover tax
City construction tax 25,752,918 30,493,854
payable
Charged at 3% (5%) of the turnover tax
Education fee and surcharges 19,325,329 22,900,088
payable
Resource tax
Other 4,153,967 4,752,311
Total 123,601,977 150,023,860 --
7.31 Selling expenses
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Advertising expenses 343,122,722 519,496,581
112
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Transportation & handling expenses 56,723,169 68,453,425
Trademark usage expenses 46,492,373 55,719,625
Storage expenses 16,924,301 15,062,387
Employee compensation 83,505,523 83,966,496
Travel expenses 9,860,937 10,794,108
Other 27,651,605 67,651,837
Total 584,280,630 821,144,459
7.32 Administrative expenses
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Employee compensation 40,198,248 43,462,695
Rental expenses 3,010,207 3,437,208
Depreciation expenses 12,105,187 12,300,186
Amortization expenses 3,337,799 4,360,942
Office expenses 5,987,623 7,702,429
Travel expenses 2,850,278 2,298,757
Business entertainment expenses 1,619,740 2,081,018
Building tax, stamp duty & other taxes 6,017,845 5,535,569
Repair expenses 4,831,854 5,941,455
Contracting expenses 6,401,260 6,299,379
Other 18,536,888 15,920,668
Total 104,896,929 109,340,306
7.33 Financial expenses
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Interest expenditure 6,802,656 5,715,682
Interest income -18,651,366 -26,280,794
Bank charges 1,401,353 1,854,996
Exchange loss -3,159,696 2,503,435
Total -13,607,053 -16,206,681
7.34 Losses for impairment of assets
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
1. Losses for bad debts -339,642
2. Losses for impairment of inventories
3. Losses for impairment of financial assets for sale
4. Losses for impairment of held-to-mature investment
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Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
5. Losses for impairment of long-term equity investment
6. Losses for impairment of investment real estate
7. Losses for impairment of fixed assets
8. Losses for impairment of project materials
9. Losses for impairment of construction in progress
10. Losses for impairment of productive biological assets
11. Losses for impairment of oil-and-gas assets
12. Losses for impairment of intangible assets
13. Losses for impairment of business reputation
14. Other
Total , -339,642
7.35 Non-operation income
7.35.1 Particulars of non-operative income
Unit: Yuan
Amount incurred in Amount incurred in Amount incurred in the current
Item
this term last term non-recurring profits/losses
Total gains on disposal of non-current
2,365 267,509
assets
Including: Gains on disposal of plant
2,365 267,509
property and equipment
Gains on disposal of intangible
assets
Gains on debt recombination
Gains on exchange of non-monetary assets
Grains on donations
Government allowance 4,388,393 6,366,089
Other 1,284,736 2,199,964
Total 5,675,494 8,833,562
7.35.2 Government allowance
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term Remark
Funds to support major projects 2,728,236 2,007,004
Funds to support small and Medium-sized
352,210 439,850
Enterprises
Tax refund 0 3,265,733
Other 1,307,947 653,502
Total 4,388,393 6,366,089 --
7.36 Non-operation expenses
Unit: Yuan
114
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Amount incurred in this Amount incurred in last Amount incurred in the current non-recurring
Item profits/losses
term term
Total loss on disposal of 392,956 2,049,999
non-current assets
Including: Loss on disposal of 392,956 2,049,999
fixed assets
Loss on disposal of intangible
assets
Loss on debt recombination
Loss on exchange of non-monetary
assets
Donation 20,000 210,000
Other 726,463 72,912
Total 1,139,419 2,332,911
7.37 Income tax
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Current income tax calculated in accordance with the tax law
219,439,114 270,610,762
and relevant regulations
Adjusted deferred income tax 25,036,402 35,534,726
Total 244,475,516 306,145,488
7.38 Computational process based on basic EPS and diluted EPS
Item Amount incurred in this term Amount incurred in last term
Earnings
Consolidated profit attributable to ordinary equity shareholders of the 740,574,221 921,143,478
Company
Shares
Weighted average number of ordinary shares issued 685,464,000 685,464,000
Basic earnings per share 1.08 1.34
Diluted earnings per share 1.08 1.34
7.39 Notes to cash flow statement
7.39.1 Cash received relating to other operating activities
Unit: Yuan
Item Amount
Government allowance 1,677,906
Earnest money 20,565,076
Interest income 10,474,259
Other 12,854,214
115
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Total 45,571,455
7.39.2 Cash paid relating to other operating activities
Unit: Yuan
Item Amount
Selling expenses 343,651,119
Administrative expenses 43,791,909
Payment for maturity of wine in Zhonghai Trust Co., Ltd. 59,667,732
Other 4,531,603
Total 451,642,363
7.40 Supplementary information to cash flow statement
7.40.1 Supplementary information to cash flow statement
Unit: Yuan
Supplementary materials Amount incurred in this term Amount incurred in last term
1. Cash flows from operating activities calculated by
adjusting the net profit: -- --
Net profit 740,574,221 921,143,478
Plus: Provision for impairment of assets -339,642
Depreciation of fixed assets, oil-and-gas assets and
productive biological assets 62,307,414 63,005,128
Intangible assets amortization 2,940,030 3,344,042
Amortization of long term prepaid expenses 6,970,257 5,297,082
Losses on disposal of fixed assets, intangible assets and
other long-term assets (profit listed with “－”)
390,591 -225,844
Losses on retirement of fixed assets (profit listed with “－”) 2,008,334
Losses on fair value change (profit listed with “－”)
Financial costs (profit listed with “－”) -11,170,965 -20,462,083
Investment losses (profit listed with “－”)
Decrease in deferred income tax assets (increase listed with
“-”) 25,036,402 35,534,726
Increase of deferred income tax liabilities (decrease listed
with “－”)
Decrease in inventories (increase listed with “-”) 258,147,903 120,554,286
Decrease in operating receivables (increase listed with “-”) -69,412,601 -117,038,790
Increase in operating payable (decrease listed with “-”) -606,624,763 -428,349,377
Other
Net cash flows from operating activities 409,158,489 584,471,340
2. Significant investment and financing activities not
involving cash deposit and withdrawal: -- --
Debt transferred into assets
Convertible corporate bond mature within 1 year
Fixed assets under financing lease
116
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Supplementary materials Amount incurred in this term Amount incurred in last term
3. Changes of cash and cash equivalent: -- --
Ending balance of cash 1,469,021,755 1,090,112,215
Minus: Opening balance of cash 1,562,294,026 1,256,517,873
Plus: Ending balance of cash equivalent
Minus: Opening balance of cash equivalent
Net increase amount of cash and cash equivalent -93,272,271 -166,405,658
7.40.2 Cash and cash equivalents
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
1. Cash 1,469,021,755 1,562,294,026
Including: Cash on hand 60,073 48,894
Bank deposits on demand 1,468,961,682 1,562,245,132
Other monetary capital on demand
Due from central bank available for payment
Due from the industry
Inter-bank lending
2. Cash equivalents
Including: Bond investment mature within three months
3. Balance of cash and cash equivalents at the end of term 1,469,021,755 1,562,294,026
8. Accounting treatment of asset securitization
Nil
9. Related parties and related transactions
9.1 Particulars of the parent company of the Company
Unit: Yuan
Proportion of Proportion
shareholding of voting
Final
Name of of the parent powers of
Association Type of Registered Legal Business Registered controlling Organization
parent company in the parent
relationship enterprise place representative nature capital parties of the code
company this company
enterprise
enterprise in this
(%) enterprise
(%)
Jointly
controlled by
four parties:
State-owned
Assets
Yantai Supervision
Joint
Changyu Controlling Yantai
stock Sun Liqiang Manufacturing 50,000,000 50.4% 50.4% and 265 645 824
Group Co., shareholder City Administration
company
Ltd. Commission
of Yantai
Municipal
Government,
ILLVA
Saronno
117
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Investment
Italy,
International
Finance
Corporation
and Yantai
Yuhua
Investment &
Development
Co., Ltd.
From January to June 2013, there was no fluctuation in registered capital of the parent company and its share of equity interest and
share of voting rights.
9.2 Particulars of the subsidiaries
Unit: Yuan
Type of Proportion of Proportion of
Type of Registered Legal Registered Organization
Name of the subsidiary the Business nature shareholding voting
enterprise place representative capital code
subsidiary (%) powers (%)
Yantai Changyu Pioneer Yantai City,
Holding Limited Zhang Lixian Transportation
Vehicular Transport Co., Shandong 300,000 100% 100% 165 031 729
Ltd.
subsidiary company
Province, China
Beijing Changyu Sales and Holding Limited Beijing City,
Sun Jian Sales 1,000,000 100% 100% 634 377 029
Distribution Co., Ltd. subsidiary company China
Yantai City,
Yantai Kylin Packaging Holding Limited
Shandong Yang Ming Manufacturing 15,410,000 100% 100% 863 052 455
Co., Ltd. subsidiary company
Province, China
Yantai City,
Yantai Changyu-Castel Holding Sino-foreign Sun Liqiang USD
Shandong Manufacturing 70% 100% 730 682 613
Wine Chateau Co., Ltd. subsidiary joint venture 5,000,000
Province, China
Jingyang
Changyu (Jingyang) Holding Limited
County, Shaanxi Wei Binsheng Manufacturing 1,000,000 100% 100% 732 663 643
Pioneer Wine Co., Ltd. subsidiary company
Province, China
Yantai City,
Yantai Changyu Pioneer Holding Limited
Shandong Jiang Hua Sales 8,000,000 100% 100% 746 576 380
Wine Sales Co., Ltd. subsidiary company
Province, China
Langfang Development Langfang City,
Holding Sino-foreign USD
Zone Castel-Changyu Hebei Province, Alan. Castel Manufacturing 49% 100% 735 624 56X
Wine Co., Ltd. subsidiary joint venture 6,108,818
China
Changyu (Jingyang) Jingyang
Holding Limited
Pioneer Wine Sales Co., County, Shaanxi Wei Binsheng Sales 1,000,000 100% 100% 735 379 154
Ltd.
subsidiary company
Province, China
Langfang
Langfang Changyu
Holding Limited Changyu Pioneer
Pioneer Wine Sales Liu Wanqiang Sales 1,000,000 100% 100% 737 388 150
Co.,Ltd.
subsidiary company Wine Sales
Co.,Ltd.
Shanghai Changyu Sales Holding Limited Shanghai city, Zhou
Sales 1,000,000 100% 100% 749 571 075
and Distribution Co., Ltd. subsidiary company China Hongjiang
Beijing Changyu AFIP Holding Limited Beijing city,
Sun Liqiang Manufacturing 110,000,000 70% 100% 780 953 469
Wine Chateau Co., Ltd. subsidiary company China
Yantai City,
Yantai Changyu Wine Holding Limited
Shandong Jiang Hua Sales 5,000,000 100% 100% 783 487 627
Sales Co., Ltd. subsidiary company
Province, China
Yantai City,
Yantai Changyu Pioneer Holding Limited Zhou
Shandong Sales 5,000,000 100% 100% 780 766 161
International Co., Ltd. subsidiary company Hongjiang
Province, China
Hangzhou City,
Hangzhou Changyu Wine Holding Limited Jiang Hua
Zhejiang Sales 500,000 100% 100% 788 283 631
Sales Co., Ltd. subsidiary company
Province, China
Yinchuan City,
Ningxia Changyu Holding Limited Ningxia Hui Shao
Planting 1,000,000 100% 100% 788 200 410
Grape-Growing Co., Ltd. subsidiary company Autonomous Chunsheng
Region, China
Huanren Changyu Holding Limited Huanren Leng Bin Sales 2,000,000 100% 100% 794 822 179
National Wine Sales Co., subsidiary company Manchu
118
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Type of Proportion of Proportion of
Type of Registered Legal Registered Organization
Name of the subsidiary the Business nature shareholding voting
enterprise place representative capital code
subsidiary (%) powers (%)
Ltd. Autonomous
County,
Liaoning
Province, China
Benxi City,
Liaoning Changyu Ice Holding Sino-foreign Zhou
Liaoning Manufacturing 26,300,000 51% 100% 747 128 301
Wine Chateau Co., Ltd. subsidiary joint venture Hongjiang
Province, China
Yantai City,
Yantai Development Zone Holding Limited Zhou
Shandong Sales 5,000,000 100% 100% 796 183 411
Changyu Trade Co., Ltd. subsidiary company Hongjiang
Province, China
Futian District,
Shenzhen Changyu Wine Holding Limited
Shenzhen City, Lin Pu Sales 500,000 100% 100% 664 195 20X
Marketing Ltd. subsidiary company
China
Yantai Fushan District Yantai City,
Holding Limited Zhou
Changyu Trading Co., Shandong Sales 5,000,000 100% 100% 660 176 044
subsidiary company Hongjiang
Ltd. Province, China
Miyun District,
Beijing AFIP Meeting Holding Limited Sun Hongbo
Beijing City, Service 500,000 100% 100% 669 926 112
Center subsidiary company
China
Miyun District,
Beijing AFIP Tourism and Holding Limited Liu Shilu
Beijing City, Tourism 500,000 70% 100% 676 627 372
Culture Company subsidiary company
China
Yinchuan
Economic and
Ningxia Changyu Holding Limited Li Jiming
Technological Manufacturing 1,000,000 100% 100% 670 408 275
Pioneer Wine Co., Ltd. subsidiary company
Development
Zone
Yantai Changyu Tinlot Holding Limited Wholesale and
YEDA Liu quan 80,000,000 100% 100% 683 222 859
Chateau Co., Ltd. subsidiary company retail
Qingtongxia
City, Ningxia
Qing Tong Xia Changyu Holding Limited
Hui Liu Yuquan Sales 500,000 100% 100% 694 334 151
Wine Marketing Ltd. subsidiary company
Autonomous
Region, China
Shihezi City,
Xinjiang Changyu Baron Holding Limited Xinjiang Uygur Sun Liqiang
Manufacturing 150,000,000 100% 100% 552 414 949
Balboa Chateau Co., Ltd. subsidiary company Autonomous
Region, China
Yinchuan
Economic and
Technological
Ningxia Changyu Ross Holding Limited Development Zhou
Manufacturing 2,000,000 100% 100% 694 349 740
15th Chateau Co., Ltd. subsidiary company Zone, Ningxia Hongjiang
Hui
Autonomous
Region, China
Xianyang City,
Shaanxi Changyu Ruina Holding Limited Sun Liqiang
Shanxi Manufacturing 20,000,000 100% 100% 552 180 142
Chateau Co., Ltd. subsidiary company
Province, China
Yantai Changyu Wine Yantai City,
Holding Limited Sun Liqiang
Research and Shandong Manufacturing 500,000,000 100% 100% 555 235 76X
Development Co., Ltd. subsidiary company
Province, China
Beidianzi Town,
Huanren Preparation for
Changyu (Huanren) Holding Limited Zhou
Manchu wine-making 5,000,000 100% 100% 587 310 365
Wine Co., Ltd. subsidiary company Hongjiang
project
Autonomous
County
Shihezi City,
Xinjiang Changyu Wine Holding Limited Xinjiang Uygur Lin Pu
Sales 10,000,000 100% 100% 580 208 296
Sales Co., Ltd. subsidiary company Autonomous
Region, China
Shihezi City,
Xinjiang Changyu Wine Holding Limited Xinjiang Uygur Lin Pu
Manufacturing 10,000,000 100% 100% 580 222 610
Co., Ltd. subsidiary company Autonomous
Region, China
Beijing Changyu AFIP Limited Miyun County, Sun Hongbo
Holding Planting 1,000,000 100% 100% 585 851 395
Eco-agriculture company Beijing City,
119
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Type of Proportion of Proportion of
Type of Registered Legal Registered Organization
Name of the subsidiary the Business nature shareholding voting
enterprise place representative capital code
subsidiary (%) powers (%)
Development Co., Ltd. subsidiary China
Yinchuan City,
Ningxia Changyu Holding Limited Ningxia Hui Zhou
Sales 1,000,000 100% 100% 054 609 428
Trading Co., Ltd. subsidiary company Autonomous Hongjiang
Region, China
Shaanxi Changyu Xianyang City,
Holding Limited Sun Liqiang
Ruina Wine Sales Co., Shanxi Sales 3,000,000 100% 100% 056 906 215
subsidiary company
Ltd. Province, China
Penglai City,
Penglai Changyu Wine Holding Limited Leng Bin
Shandong Sales 5,000,000 100% 100% 053 429 070
Sales Co., Ltd. subsidiary company
Province, China
Penglai City,
Penglai Changyu Wine Holding Limited Leng Bin
Shandong Sales 5,000,000 100% 100% 053 429 070
Sales Co., Ltd. subsidiary company
Province, China
Shihezi City,
Xinjiang Uygur
Xinjiang Tianzhu Winery Holding Limited Zhou
Autonomous Manufacturing 75,000,000 60% 100% 787 604 261
Co., Ltd subsidiary company Region, China
Hongjiang
9.3 Other related parties of the Company
Name of other related parties Relationship with the Company Organization code
Company controlled by the same parent
Yantai Changyu Travelling Co., Ltd. 258 258 654
company
Yantai Changyu International Window of Company controlled by the same parent
672 208 146
the Wine City Company Limited company
Company controlled by the same parent
Yantai Shenma Packaging Co., Ltd. 553 393 350
company
Yantai Zhongya Pharmaceutical Tonic Company controlled by the same parent
726 203 923
Wine Co., Ltd. company
9.4 Transactions with related parties
9.4.1 List of purchasing goods and receiving services form related parties
Unit: Yuan
Amount incurred in this term Amount incurred in last term
Method of procedure of Percentage in
Related parties Transactions pricing of the similar Percentage in similar
transactions Amount Amount
transaction transaction amount (%)
amount (%)
Yantai Changyu Purchasing
Negotiated price 91,691 0.01% 43,846 0.01%
Travelling Co., Ltd. goods
Yantai Changyu
International Window Purchasing
Negotiated price 506 0% 309,179 0.04%
of the Wine City goods
Company Limited
Yantai Shenma Purchasing
Negotiated price 114,796,337 15.11% 89,945,256 12.36%
Packaging Co., Ltd. goods
Yantai Zhongya
Purchasing
Pharmaceutical Tonic Negotiated price 5,685,223 0.75% 4,422,510 0.61%
goods
Wine Co., Ltd.
120
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
List of selling goods and providing services to related parties
Unit: Yuan
Amount incurred in this term Amount incurred in last term
Method of procedure
Related parties Transactions of pricing of the Percentage in Percentage in
transactions Amount similar transaction Amount similar transaction
amount (%) amount (%)
Yantai Changyu Travelling Selling
Negotiated price 1,573,313 0.06% 2,037,510 0.07%
Co., Ltd. goods
Yantai Changyu International
Selling
Window of the Wine City Negotiated price 2,292,885 0.09% 1,721,306 0.06%
goods
Company Limited
Yantai Zhongya
Selling
Pharmaceutical Tonic Wine Negotiated price 725,827 0.03% 23,981,072 0.80%
goods
Co., Ltd.
9.4.2 Related trusteeship/contracting
Nil
9.4.3 Related lease
Leasing list of the Company
Unit: Yuan
Type of the leased Beginning Basis for lease Confirmed lease fee
Name of the lessor Name of the lessee Ending date
property date fee in this term
Yantai Changyu Yantai Changyu Warehouse and January 1, December 31, Negotiated
2,929,000
Group Co., Ltd. Wine Co., Ltd. office building 2012 2016 price
Pursuant to a lease contract signed between the Company and the controlling company, starting
from January 1, 2012, the Company may rent properties for operation purposes at a basic annual
rental of RMB 5,858,000 yuan, and the expired date is December 31, 2016. From January to June
2013, the rental expenses payable of the Group to the controlling company amounted to RMB
2,929,000 yuan.
121
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
9.4.4 Related guarantee
Nil
9.4.5 Inter-bank lending of related parties
Nil
9.4.6 Asset transfer and debt recombination of related parties
Nil
9.4.7 Other related party transactions
Item Note Amount incurred in this term Amount incurred in last term
Trademark usage (a) 46,492,373 55,719,625
fee
Patents fee (b) 25,000 25,000
All related party transactions are based on the negotiated price
a. Trademark royalty contract
Pursuant to a trademark royalty contract dated May 18, 1997 signed by the Company and the
controlling company, starting from September 18, 1997, the Company may use certain trademark of
Changyu Group Company, which has been registered with the PRC Trademark Office. An annual
royalty fee at 2% of the Group’s annual sales is payable to Changyu Group Company. The license is
effective until the expiry of the registration of the trademarks.
From January to June 2013, patent fee paid to related parties accounted for 100% of the Group.
b. Patent implementation license
Pursuant to a patent implementation license dated May 18, 1997 signed by the Company and the
controlling company, starting from September 18, 1997, the Company may use the patents of
Changyu Group Company. The annual patents usage fee payable by the Company to Changyu
Group Company was RMB 50,000 yuan. The contract was expired on December 20, 2005. The
Company renewed the contract on August 20, 2006 for 10 years. The annual patents usage fee
payable by the Company to Changyu Group Company remained RMB 50,000 yuan. From January
to June 2013, the patents usage fee payable to Changyu Group Company amounted to RMB 25,000
yuan.
From January to June 2013, patent fee paid to related parties accounted for 100% of the Group.
9.5 Trade receivable and payable of the related parties
Trade receivable from related parties by listed companies
Unit: Yuan
Item Related parties Ending sum Beginning sum
122
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Book Bad debt Bad debt
Book balance
balance provision provision
Trade receivable Yantai Changyu Travelling Co., Ltd. 28,730 311,220
Yantai Changyu International Window of
Trade receivable 79,240
the Wine City Company Limited
Trade receivable Yantai Shenma Packaging Co., Ltd.
Yantai Zhongya Pharmaceutical Tonic
Trade receivable 2,632,780 1,820,376
Wine Co., Ltd.
Other trade receivable Yantai Changyu Group Co., Ltd. 2,454,000
Payable to related parties by listed companies
Unit: Yuan
Item Related parties Ending sum Beginning sum
Trade payable Yantai Shenma Packaging Co., Ltd. 25,568,071 43,366,087
Yantai Zhongya Pharmaceutical Tonic Wine
Trade payable
Co., Ltd. 8,707,068 7,972,184
Other payable Yantai Changyu Group Co., Ltd. 46,492,373 99,943,588
10. Share payment
Nil
11. Contingency
11.1 Contingent liability caused by pending litigation and arbitration and financial influence
Nil
11.2 Contingent liability caused by providing debt guarantee for other units and financial
influence
Nil
12. Commitment
12.1 Significant commitment
End balance Beginning balance
Capital commitment
Approved by the Board of Directors but 1,015,600,000 1,605,664,161
not contracted
End balance Beginning balance
Investment commitment
Contracted but not fully performed
13. Matters after balance sheet
13.1 Important matters after balance sheet
Nil
123
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
13.2 Distribution of profits after balance sheet
Unit: Yuan
Profits or dividends to be distributed 754,010,400
Allocated profits or dividends approved to declare upon
754,010,400
discussion
On 15th May, 2013, the shareholders’ general meeting has deliberated and approved the scheme of
dividend distribution for the year 2012, the total stock 685,464,000 shares, at that time as a cardinal
number to distribute CNY 11 in cash for per 10 shares to all stockholders, and the total cash
dividend CNY 754,010,400. The cash dividend was transferred on July 11, 2013.
14. Other important matters
Nil
15. Notes to financial statements of the parent company
15.1 Trade receivable
15.1.1 Trade receivable
Unit: Yuan
Ending sum Beginning sum
Book balance Bad debt provision Book balance Bad debt provision
Type
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Trade receivable of significant single
amount and single accrued bad debt
provision
Trade receivable of insignificant single
amount and single accrued bad debt 2,140,874 100% 710,080 100%
provision
Total 2,140,874 -- -- 710,080 --
15.1.2 Trade receivable transferred back or received in this term
Nil
15.1.3 Trade receivable actually cancelled after verification in this term
Nil
15.1.4 Trade receivable due from shareholders with voting rights of 5% (including 5%) or above in this term
Nil
124
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
15.1.5 Top 5 units of trade receivable
Unit: Yuan
Relationship with Percentage of total trade
Unit Amount Period
the Company receivable (%)
Under the control
Yantai Zhongya Pharmaceutical
Tonic Wine Co., Ltd.
of the same parent 2,126,273 Within 1 year 99.32%
company
Under the control
Changyu Travelling Co., Ltd. of the same parent 14,601 Within 1 year 0.68%
company
Total -- 2,140,874 -- 100%
15.1.6 Trade receivable from related parties
Unit: Yuan
Percentage of total trade
Unit Relationship with the Company Amount
receivable (%)
Yantai Zhongya Pharmaceutical Tonic Wine Under the control of the same parent
Co., Ltd. company 2,126,273 99.32%
Under the control of the same parent
Changyu Travelling Co., Ltd.
company 14,601 0.68%
Total -- 2,140,874 100%
15.2 Other trade receivable
15.2.1 Other trade receivable
Unit: Yuan
Ending sum Beginning sum
Type Book balance Bad debt provision Book balance Bad debt provision
Proportion Proportion Proportion Proportion
Amount (%)
Amount (%)
Amount (%)
Amount (%)
Trade receivable of
significant single amount
11,120,600 0.48% 11,120,600 100% 11,120,600 0.5% 11,120,600 100%
and single accrued bad
debt provision
Trade receivable of
insignificant single amount
and single accrued bad
debt provision
Nondecrease in value
2,305,315,256 99.52% 2,194,219,753 99.5%
within the time limit
Total 2,316,435,856 -- 11,120,600 -- 2,205,340,353 -- 11,120,600 --
Other trade receivable of significant single amount and single accrued bad debt provision at the end
of term
Unit: Yuan
Other trade receivable Book balance Bad debt Accrued proportion (%) Reason
Tiantong Securities Co., This company is in
8,000,000 8,000,000 100%
Ltd. bankruptcy liquidation
125
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
The accounting age is
Jingyang County Finance over three years and
3,120,600 3,120,600 100%
Bureau there is little possibility
to take it back.
Total 11,120,600 11,120,600 -- --
15.2.2 Other trade receivable transferred back or received in this term
Nil
15.2.3 Other trade receivable actually cancelled after verification in this term
Nil
15.2.4 Other trade receivable due from shareholders with voting rights of 5% (including 5%) or above in
this term
Unit: Yuan
Ending sum Beginning sum
Unit Accrued bad
Book balance Book balance Accrued bad debt
debt
Yantai Changyu Group Co., Ltd. 2,454,000
Total 2,454,000
15.2.5 Nature or content of other trade receivable of significant amount
Unit: Yuan
Unit Amount Nature or content of fund Percentage of total other trade receivable (%)
Xinjiang Changyu
Baron Balboa Chateau 547,628,718 Incomings and outgoings 23.64%
Co., Ltd.
Beijing Changyu AFIP Incomings and outgoings
Wine Chateau Co., Ltd. 519,645,720 22.43%
Shaanxi Changyu Incomings and outgoings
Ruina Wine Sales Co., 418,357,158 18.06%
Ltd.
Ningxia Changyu Incomings and outgoings
Mosel 15th Chateau 278,381,453 12.02%
Co., Ltd.
Changyu (Ningxia) Incomings and outgoings
Pioneer Wine Co., Ltd. 238,999,856 10.32%
Total 2,003,012,905 -- 86.47%
15.2.6 Top 5 units of other trade receivable
Unit: Yuan
Relationship with the Percentage of total other
Unit Amount Period
Company trade receivable (%)
Xinjiang Changyu Baron
Balboa Chateau Co., Ltd. Subsidiary 547,628,718 Within 1 year 23.64%
Beijing Changyu AFIP Wine
Chateau Co., Ltd. Subsidiary 519,645,720 Within 1 year 22.43%
Shaanxi Changyu Ruina
Wine Sales Co., Ltd. Subsidiary 418,357,158 Within 1 year 18.06%
126
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Ningxia Changyu Moesl 15th
Chateau Co., Ltd. Subsidiary 278,381,453 Within 1 year 12.02%
Changyu (Ningxia) Pioneer
Wine Co., Ltd. Subsidiary 238,999,856 Within 1 year 10.32%
Total -- 2,003,012,905 -- 86.47%
127
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
15.3 Long-term equity investment
Unit: Yuan
Explanation for
Proportion of difference between
Proportion of voting power the proportion of Accrued
Calculation Cost of Beginning Movement Impairment Cash
Invest to Ending balance shareholding in in the shareholding and depreciation
method investment balance for the year provision dividend
the invested unit invested unit proportion of provision
(%) voting power in the
invested unit
Xinjiang Tianzhu (a) Cost
60,000,000 60,000,000 60,000,000 60% 100%
method
Vehicular
Cost
300,000 300,000 300,000 100% 100%
Transportation method
Kylin Packaging Cost
23,176,063 23,176,063 23,176,063 100% 100%
method
Changyu Chateau (a) Cost
28,968,100 28,968,100 28,968,100 70% 100%
method
AFIP Tourism (a) Cost
350,000 350,000 350,000 70% 100%
method
Pioneer International Cost
3,500,000 3,500,000 3,500,000 70% 100%
method
Ningxia Growing Cost
1,000,000 1,000,000 1,000,000 100% 100%
method
National Wines Cost
2,000,000 2,000,000 2,000,000 100% 100%
method
Ice Chateau (a) Cost
13,413,000 13,413,000 13,413,000 51% 100%
method
Beijing Chateau (a) Cost 77,000,000 77,000,000 77,000,000 70% 100%
method
Sales Company Cost 7,200,000 7,200,000 7,200,000 90% 100%
method
Langfang Sales (b) Cost
100,000 100,000 100,000 10% 100%
method
128
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Langfang Castel Cost
19,835,730 19,835,730 19,835,730 39% 100%
method
Wine Sales Cost 4,500,000 4,500,000 4,500,000 90% 100% 11,140,442
method
Shanghai Sales (b) Cost
300,000 300,000 300,000 30% 100%
method
Beijing Sales Cost
850,000 850,000 850,000 100% 100%
method
Jingyang Sales (b) Cost
100,000 100,000 100,000 10% 100%
method
Jingyang Wine Cost
900,000 900,000 900,000 90% 100%
method
Ningxia Wine Cost
1,000,000 1,000,000 1,000,000 100% 100%
method
Yantai Dingtao Cost
10,000,000 10,000,000 10,000,000 18% 18% 5,000,000
method
Ningxia Chateau Cost
2,000,000 2,000,000 2,000,000 100% 100%
method
Tinlot Chateau Cost
80,000,000 80,000,000 80,000,000 100% 100%
method
Shihezi Chateau Cost
150,000,000 150,000,000 150,000,000 100% 100%
method
Changan Chateau Cost
20,000,000 20,000,000 20,000,000 100% 100%
method
Development Centre Cost
500,000,000 500,000,000 500,000,000 100% 100%
method
Huanren Wine Cost
5,000,000 5,000,000 3,700,000 8,700,000 100% 100%
method
Total -- 1,011,492,893 1,011,492,893 3,700,000 1,015,192,893 60% 100% 5,000,000 0 11,140,442
129
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
(a) The Company holds 100% of the voting power and interests of those are not wholly-owned
subsidiaries by contracted operation and paying contracting fees. Refer to Notes 6.1.
(b) The Company holds 100% of the voting power of those subsidiaries by indirect holding.
From January to June 2013, there was no significant restriction on the remittance of fund from the
invested units to the Company.
15.4 Operating income and cost
15.4.1 Operating income
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Major operating income 687,497,638 695,491,695
Other operating income 27,585,498 76,366,715
Total 715,083,136 771,858,410
Operating cost 585,109,268 630,970,052
15.4.2 Operating income of top 5 clients of the Company
Unit: Yuan
Proportion of total operating income of the
Client Total operating income
Company (%)
Sales Company 657,349,195 91.93%
Castel Chateau 14,574,819 2.04%
Longkou Changyu Sales 12,258,600 1.71%
Penglai Wine 8,335,671 1.17%
Pioneer International 7,800,499 1.09%
Total 700,318,784 97.94%
From January to June 2013, top five sales clients of the Company are all subsidiaries.
15.5 Investment income
15.5.1 Particulars of investment income
Unit: Yuan
130
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Amount incurred in this term Amount incurred in last term
Income from long-term equity investment by cost method 11,140,442 12,000,000
Income from long-term equity investment by equity method
Income from disposal of long-term equity investment
Investment income gained from disposal of financial assets held
for trading 0
Investment income gained from held-to-maturity investment in the
beneficial period
Investment income gained from financial assets held for sale
Investment income gained from disposal of trading financial
assets
Investment income gained from held-to-maturity investment
Income from investment in financial assets for sale
Other
Total 11,140,442 12,000,000
15.5.2 Income on long-term equity investment by cost method
Unit: Yuan
Invest to Amount incurred in this term Amount incurred in last term Reason for change in this term
Wine Sales 11,140,442 12,000,000
Total 11,140,442 12,000,000 --
15.6 Supplementary information to consolidated cash flow statement
Unit: Yuan
Amount incurred in this Amount incurred in last
Supplementary materials
term term
1. Cash flows from operating activities calculated by adjusting the net profit: -- --
Net profit 28,904,179 29,519,643
Plus: Provision for impairment of assets -339,642
Depreciation of fixed assets, oil-and-gas assets and productive biological
19,808,610 21,120,669
assets
Intangible assets amortization 1,121,540 1,469,540
Amortization of long term prepaid expenses
Losses on disposal of fixed assets, intangible assets and other long-term
1,106
assets (profit listed with “－”)
131
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Amount incurred in this Amount incurred in last
Supplementary materials
term term
Losses on retirement of fixed assets (profit listed with “－”) 2,008,334
Losses on fair value change (profit listed with “－”)
Financial costs (profit listed with “－”) -11,170,965 -20,462,083
Investment losses (profit listed with “－”) -11,140,442 -12,000,000
Decrease in deferred income tax assets (increase listed with “-”) 5,809,621 6,211,787
Increase of deferred income tax liabilities (decrease listed with “－”)
Decrease in inventories (increase listed with “-”) 110,238,935 -95,279,690
Decrease in operating receivables (increase listed with “-”) -208,855,353 -166,771,359
Increase in operating payable (decrease listed with “-”) 543,489,465 -295,894,023
Other
Net cash flows from operating activities 478,206,696 -530,416,824
2. Significant investment and financing activities not involving cash deposit
-- --
and withdrawal:
Debt transferred into assets
Convertible corporate bond mature within 1 year
Fixed assets under financing lease
3. Changes of cash and cash equivalent: -- --
Ending balance of cash 833,162,361 312,423,451
Minus: Opening balance of cash 425,084,049 296,735,240
Plus: Ending balance of cash equivalent
Minus: Opening balance of cash equivalent
Net increase amount of cash and cash equivalent 408,078,312 15,688,211
16. Supplementary materials
16.1 List of current non-recurring profits/losses
Unit: Yuan
Item Amount Remark
Profits/losses on disposal of non-current assets (including
-390,591
write-off amount accrued provision for impairment of assets)
Tax return, deduction and exemption approved beyond the
0
authority or without formal approval document
Government allowance included in the current profits/losses
(excluding those closely related to the enterprise business and 4,388,393
enjoyed in accordance with the unified standard quota or ration of
132
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Amount Remark
the state)
Payment for use of funds by non-financial enterprises included in
the current profits/losses
Income obtained when the investment cost obtained by the
enterprise from subsidiaries, associated enterprises and
cooperative enterprises is less than the fair value of the net
identifiable assets obtained from the invested units when the
investment is made
Profits/losses on exchange of non-monetary assets
Profits/losses on entrusting other people to make investment or
manage assets
Asset impairment provision accrued due to force majeure such as
natural disaster
Profits/losses on debt restructuring
Enterprise reorganization expenses such as staffing expenditure
and integration expenses
Profits/losses on those beyond the fair value generated from
transactions with unfair transaction price
Current net profits/losses on subsidiaries acquired from a business
combination under common control from the beginning to the
consolidation date
Profits/losses on contingencies irrelated to the normal business of
the Company
Profits/losses on changes of fair value of financial assets and
liabilities held for trading, and investment income from disposal
of financial assets and liabilities held for trading and financial
assets held for sale, excluding effective hedging operations
relevant to the normal business of the Company
Returns of provision for impairment of accounts receivable with
single impairment test
Profits/losses on external entrusted loans
Profits/losses on fair value changes of investment real estate with
fair value mode for follow-up measurement
Influence of the one-time adjustment of the current profits/losses
in accordance with tax and accounting laws and regulations on
the current profits/losses
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above 538,273
133
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
Item Amount Remark
items
Other profits/losses conforming to the definition of non-recurring
profits/losses
Minus: Influenced amount of income tax 676,277
Influenced amount of minority shareholders’ equity (after-tax)
Total 3,859,798 --
16.2 Accounting data difference under domestic and foreign accounting standard
16.2.1 Net profits & net assets difference disclosed in the financial report according to the
international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits belonging to shareholders of listed Net assets belonging to shareholders of listed
companies companies
Amount in this term Amount in last term End sum Beginning sum
In accordance with the
740,574,221 921,143,478 6,653,678,399 5,913,104,178
Chinese accounting standard
Item & amount adjusted in accordance with the international accounting standard
In accordance with the
international accounting 740,574,221 921,143,478 6,653,678,399 5,913,104,178
standard
16.3 Return on net assets and earnings of per share
Unit: Yuan
Weighted average return on net Earnings per share
Profit incurred in this term
assets (%) Basic EPS Diluted EPS
Net profit attributable to common shareholders
11.79% 1.08 1.08
of the Company
Net profit attributable to common shareholders
of the Company deducting non-incidental 11.72% 1.07 1.07
profits/(losses)
16.4 Abnormalities in main accounting statements of the Company and reason
Unit: CNY
134
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
More or less
Assets and liabilities Ending balance Beginning balance Reason for changes
(%)
Notes receivable 163,517,664 92,635,701 76.52% Mainly because of the increasing of received
banker’s acceptance
Inventory 2,010,473,538 2,268,621,441 -11.38% Mainly because of the stock decreasing due to the
distribution during the spring festival
Construction in 1,123,056,806 832,828,689 34.85% Mainly because of the increasing of the investment
progress for the projects
Advances from 279,624,914 450,172,253 -37.88% Mainly because of the accounting carryforward for
customers the advances from the customers in the beginning of
the peiod after the sales shipment during spring
festival.
Employee salary 89,660,021 140,484,927 -36.18% Mainly because of releasing bonus of last year
payable
Taxes payable 169,196,578 444,084,576 -61.90% Mainly because of paying the income tax of last year
Non-currentliabilities 95,102,268 150,945,000 -37.00% Mainly because of the contract expiration with
due within one year Zhonghai Trust Co. Ltd.
Amount in the Amount in last More or less
Income statement Reason for changes
period period (%)
Operating income 2,539,378,234 3,012,584,089 -15.71% The decrease of sales revenue for the high-end
wine, comparing with the same period of last year.
Operating cost 759,692,089 727,833,473 4.38% The changes of sales products structure, the
proportion of high-end products declining, the
proportion of low quality products increasing, the
price of raw material increasing
Sales expense 584,280,630 821,144,459 -28.85% According to the market situation, appropriately
compressing marketing investment
Income tax expense 244,475,516 306,145,488 -20.14% The decrease of sales revenue for the high-end
wine, comparing with the same period of last year.
135
Yantai Changyu Pioneer Wine Co. Ltd. 2013 Semi-annual Report
IX Catalogue of Documents for Future Reference
1、Semi-annual reports signed by the president;
2、Financial reports signed and affixed the seal by the president, financial administrator in
charge of accounting and chief of accounting department;
3、All documents published on the newspaper designated by China Securities Regulatory
Commission in the reporting term;
4、Articles of Association;
5、Other relevant documents.
Yantai Changyu Pioneer Wine Company Limited
Board of Director
28th August, 2013
136
