2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
Shares Code: 000869. 200869 Shares Abbreviation: Changyu A、Changyu B Notice No.: 2014-Final02
Yantai Changyu Pioneer Wine Co. Ltd.
2014 Semi-Annual Report Abstract
1. Important Warning
This Semi-annual report abstract comes from the whole contents of semi-annual report, Investors
desire to comprehend more details, We advise investors to read the Semi-Annual Report carefully.
The Semi-Annual Report has been published in the website of Juchao Information or Shenzhen
Stock Exchange and other websites stipulated by the China Securities Regulatory Commission.
Brief Introduction for the Company
Abbreviation of the Code number of the
Changyu A、Changyu B 000869、200869
Shares: Shares
Abbreviation of the
Shares after -
alteration
Place of listing of
Shenzhen Stock Exchange
the Shares
Contact person and Authorized Representative of the
Secretary to the Board of Directors
information Securities Affairs
Name Mr. Qu Weimin Mr. Li Tingguo
56 Dama Road, Yantai, Shandong, 56 Dama Road, Yantai, Shandong,
Address
China China
Tel 0086-535-6633656 0086-535-6633656
Fax 0086-535-6633639 0086-535-6633639
E-mail quwm@changyu.com.cn stock@changyu.com.cn
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
2. Key financial data and shareholders changing
(1)Key financial data
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
Unit: CNY
More or less than
In the report In the same period
Item the same period of
period of last year
last year(%)
Business revenue (CNY) 2,301,990,248 2,539,378,234 -9.35%
Net profit attributed to the shareholders
638,041,311 740,574,221 -13.85%
of the listed company (CNY)
Net profit attributed to the shareholders
of the listed company after deducting 629,900,854 736,714,423 -14.50%
the irregular profit and loss (CNY)
Net cash flows from the operating
889,675,131 409,158,489 117.44%
activities (CNY)
Basic earnings (CNY) per share 0.93 1.08 -13.89%
Diluted earnings (CNY) per share 0.93 1.08 -13.89%
Return on net assets (%) 9.77% 11.79% -2.02%
At the end of the At the end of last More or less than
report period year the end of last year
Total assets (CNY) 8,614,013,724 8,001,532,444 7.65%
Net Assets attributed to the shareholders
6,846,051,413 6,208,279,705 10.27%
of the listed company (CNY)
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
(2) The top ten shareholders of the Company and the shareholdings.
Total 47385
Total shareholders in the report period
36242 shareholders of A share
11143 shareholders of B share
the top 10 shareholders holding situation
Character of Percentage Number of Pledged or frozen
Name of Shareholders Shares held
shareholders (%) restricted shares Share status Amount
Domestic non-state-
YANTAI CHANGYU GROUP CO. LTD. 50.40% 345,473,856
owned legal person 0 － 0
GAOLING FUND,L.P. Foreign shareholder 3.53% 24,176,997
0 － 0
GIC PRIVATE LIMITED Foreign shareholder 2.69% 18,456,155
0 － 0
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD Foreign shareholder 2.35% 16,106,326
0 － 0
GSIC A/C MONETARY AUTHORITY OF SINGAPORE Foreign shareholder 0.89% 6,085,399
0 － 0
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND Foreign shareholder 0.68% 4,651,666
0 － 0
BBH S/A FIDELITY FUNDS SICAV-HEALTH CARE Foreign shareholder 0.63% 4,306,656
0 － 0
VALUE PARTNERS HIGH-DIVIDEND STOCKS FUNDS Foreign shareholder 0.62% 4,280,146
0 － 0
NORGES BANK Foreign shareholder 0.61% 4,171,564
0 － 0
FIDELITY CHINA SPECIAL SITUATIONS PLC Foreign shareholder 0.55% 3,779,202
0 － 0
Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or
The explanation for the associated relationship and accordant action of the top 10
accordant action relationship with the other 9 listed shareholders, and the relationship among the other shareholders
shareholders
is unknown.
Explanation for the shareholders who involved in financing activities and stock
The top 10 Shareholders is not involved in financing activities and stock trading business.
trading business
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
(3) The top 10 preferred shareholders holding situation form
□ Available √ Not available
There is no preferred shareholders holding situation during the report period.
(4) Controlling shareholder or changes of the actual controllers situation
Changes of the controlling shareholder during the report period
□ Available √ Not available
There is no any change of the controlling shareholder during the report period.
Changes of the actual controllers during the report period
□ Available √ Not available
There is no any Change of the actual controllers during the report period
3. Management's Discussion & Analysis
(1) Summarization
During the report period, under the influence of multiple factors, such as slowdown of domestic
economic growth, overwhelming flow of foreign wine into Chinese market and the relative national
policies and so on, the competition in the domestic wine industry was fierce, especially there was a great
decline on the effective demands for the premium wines, which brought a strong pressure to the
Companys production and operation. Facing quite a lot of external disadvantages, the Company
insisted to focus on the market, in accordance with the trend of market development, adjust the
marketing tactics and product structure in time, constantly perfect the marketing channels and promote
product sales, so that to restrain the situation of decline in operating results. In the second quarter (April,
May, June), rebound of main business income and net profit in different levels emerges, 14.86% and
6.23% respectively more than the same period in previous year; Based on this, the company realized
business income of CNY 2301.99 million, 9.35% less than the same period in previous year; realized
net profit of CNY 638.04 million, 13.85% less than the same period in previous year. Both decline
range diminished, compared with those in the first quarter.
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
(2)Analysis to main business
Period comparison of main financial data
Unit: CNY
In the same period of More or less
In the report period Reason for changes
last year (%)
Operating revenue Mainly the decrease of sales revenue for the high-end cheteau wine, comparing
2,301,990,248 2,539,378,234 -9.35%
with the same period of last year.
Mainly the changes of sales products structure, the proportion of high-end
Operating cost products declining, the proportion of low grade products increasing, the
754,302,386 759,692,089 -0.71%
increased price of raw material including grapes comparing with the same
period of last year
Sales expense According to the market situation, appropriately compressing marketing
486,481,030 584,280,630 -16.74%
investment
Management expense 103,980,497 104,896,929 -0.87%
Financial expense -14,254,385 -13,607,053 -4.76%
Income tax expense 210,241,876 244,475,516 -14% Mainly decreasing of net profit, comparing with the same period of last year
Mainly increasing of expenditure of R&D investment, comparing with the
R&D investment 5,436,054 5,342,521 1.75%
same period of last year
Net amount of cash flow
generated in operating 889,675,131 409,158,489 117.44% Mainly decreasing of cash outflow from various operating activities
activities
Net amount of cash flow
generated in investment -240,974,464 -502,430,760 52.04% Mainly the decrease of cash used to pay fixed deposit over 3 months
activities
Net increased amount of Mainly increase of net amount of cash flow generated in operating and
648,662,711 -93,272,271 795.45%
cash and cash equivalents investment activities
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
Whether there is any great change for the Company’s profit structure or profit source during the
report period
□Available V Not available
There is no great change for the Company’s profit structure or profit source during the report period.
Whether there is any future development and planning disclosed in the public Company’s shares
prospectus, collecting prospectus and asset restructuring 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 restructuring report during the report period.
(3) Review and summary of the progress situation during the report period of the company’s
business plan disclosed in earlier stage
During the report period, influenced by the abrupt change of market situation and the great
recession on the demand for the premium wines, in order to deal with the unfavorable business
environment, during the report period, the Company carried out the operation strategy of steady
development in the middle and high-end wines, and vigorous expansion for the low-level wines,
brandy and imported wines with own brands. While making efforts to promote the
development of middle and high-end wines, the Company made an appropriate tilt on marketing
resources to the low-level wines, brandy and imported wines with own brands for meeting
the market demand, which effectively curb the decline on the business income. The main work in
the report period is as following:
Firstly, to perfect sales system construction, strengthen the marketing process management. The
Company has completed to reorganize and adjust all levels employees of sale team, set up
additionally prefecture-level city managers, strengthen management of salesperson classification,
perfect salesperson performance assessment method, which are better at arousing the motivation of
salesperson; to set up middle-small restaurant direct-supplying management company and Lanzhou,
Yinchuan and Xianyang direct-supplying company, further to expand direct-supplying business.; to
clear up and simplify company’s existing products system, making core products system which
adapt to the future development much clearer; further to define major push for different kind of
products, strengthen marketing pertinence; through constructing the market work regulation of
contact point and examining sales terminal, to promote the full implementation and development of
the marketing strategy named “move towards terminal”.
Secondly, to continue the propulsion of informatization construction and management innovation.
The Company has completed the projects of the first and second phase of SAP system. SAP system
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
has been taken comprehensive on-line operation during the report period. Focusing on the future
development goals and the urgent and significant problems to solve on management,
production, technology and marketing, the Company proposed and completed over 279 items
of innovation and reasonable projects, which brought the related works and management level to
a new step.
Thirdly, to reinforce the management of cost and expense, making great efforts to improve
economic benefits. The Company has enforced the assessment of input-output ratio of
advertisement fee and capital occupation in the bulk wine, packing material and finished goods, so
that to reduce capital occupation and increase the efficiency and effectiveness in the use of funds;
has compressed production cost expense through the measures of centralized purchasing, packaging
improvements, packaging simplification, and cancelling commissioned processing, which helped to
reduce per ton of wine cost, and increase economic benefits.
Fourthly, to accelerate the research and development (R&D) of new technology, new procedure,
new products, steadily promote the construction of technological renovation projects. The Company
increased the input intensity of technology projects, strengthened R&D ability, and completed to
declare 3 items of scientific and technological achievements in state, provincial and city level, and
one item patent; By means of strict implementation of special audit and third-party supervision to
construction projects, projects’ quality, investment scale and construction progress have been
controlled preferably, and the main investment projects went well.
During the second half year of 2014, the Company will mainly fulfill the following work and measures
as follows:
Firstly, persist to drive the innovation of sales modes, strengthen to develop and control sales terminal.
The Company will optimize the current sales mode of dealers as the main part, properly enlarge the
scale of delivery dealers and direct trade, insist to the working system of contact point markets which
are managed by company’s leaders, step up the development of sales terminal and management intensity,
and accelerate to promote the moving terminal management system construction, which will provide
technology supports and examination approach for terminal work and making great efforts to grasp the
products initiative in terminal sales.
Secondly, continue to reinforce the management of cost expenses, improve effects in the use of funds.
The company strengthens to budget management and refine assessment items, simplify products’
packing, come into full effects of tray transportation, expand centralized purchasing of raw material,
optimize pricing model of purchasing grapes price etc, intensify the management control of main cost
expenses in production cost and sales expenses, increase the effect in the use of funds, add company
benefit.
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
Thirdly, ensure steady progress of investment projects, optimize the production structure, enlarge
production capacity and upgraded management level. In the light of 2014 capital expenditure plan’s
schedule, the Company steadily promote investment projects construction, strictly control the project
schedule and the investment budget, ensure good quality and construction safety of engineering, lay a
solid foundation for further improving production capacity and optimizing productivity structure;
accelerate implement and propulsion of SAP, reinforce the training of related staffs, improve preferably
the Company’s management level and control ability by means of modern information technology.
Fourthly, to reinforce the management of the vineyard bases, perfect the work on grape purchase, the
Company will make further definition to the duty and division of administrators at all-levels vineyards
and grapes planters, strengthen the training and assessment of grape planters, reinforce to guide and
manage vineyards on site, encourage to popularize the mechanized farming, improve grape quality and
reduce the cost of raw materials; accomplish grape purchasing plans and implementation scheme,
organize and deploy internal resources scientifically, guarantee both quality and quantity to complete
acquisition grapes, ensure sufficient and quality grape material supply.
(4) Structure of main businesses
Unit: CNY
Increase or
Increase or decrease Increase or decrease
Gross decrease of gross
Operating Operating of operating revenue of operating cost
profit profit over the
revenue cost over the same period over the same period
(%) same period of last
of last year (%) of last year (%)
year
Sector
Wine and
alcoholic 2,295,163,767 748,344,147 67.39% -9.44% -1.26% -2.70%
beverages
Product
Wine 1,765,168,335 553,653,304 68.63% -9.28% 4.52% -4.14%
Brandy 467,055,981 158,456,974 66.07% -4.69% -6.24% 0.56%
Sparkling
20,570,297 13,653,755 33.62% 2.01% 8.01% -3.69%
wine
Other 42,369,154 22,580,114 46.71% -45.95% -51.50% 6.10%
Region
Eastern
1,953,179,965 628,664,664 67.81% -9.56% -1.42% -2.66%
Region
Middle
233,339,819 82,589,404 64.61% -8.39% -0.67% -2.75%
Region
Western
108,643,983 37,090,079 65.86% -9.56% 0.08% -3.29%
Region
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
(5) 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 the
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.
4. Issues related to financial report
(1) Compared with the previous year’s financial report, explanation on the changes of
accounting policies, accounting estimates, accounting method.
□Available V Not available
During the report period, there are no changes of accounting policies, accounting estimates,
accounting method compared with the previous year’s financial report.
(2) During the report period, a description of the situation on the Company makes retroactive
adjustments or restates because of changes of accounting errors.
□Available V Not available
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2014 Semi-Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.
There are no big accounting errors which need to make retroactive adjustments or restate situation.
(3) Compared with the previous year’s financial report, explanation for the changes of the
consolidated statements scope.
□Available V Not available
During the report period, there are no changes of the consolidated statements scope.
(4) During the report period, be explained on the public accountants issued “non-standard
audit reports” by Board of directors and supervisory board.
□Available V Not available
Yantai Changyu Pioneer Wine Co. Ltd.
Board of Directors
27th August 2014
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