Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Yantai Changyu Pioneer Wine Co. Ltd.
2015 Semi-annual Report
2015-Final 03
August 2015
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Contents
I、Important Notice, Contents and Definition ............................................................................... 3
II、Brief Introduction for the Company ....................................................................................... 5
III、Summary of Accounting Data and Financial Indicators ..................................................... 7
IV、Board of Directors’ Report ................................................................................................... 10
V、Major Issues ............................................................................................................................. 20
VI、Changes in Shares and the Shareholders’ Situation ........................................................... 29
VII、Relative situation for preferred shares ................................................................................ 33
VIII、Situation for Directors, Supervisors, Senior Management ............................................. 34
IX、Financial Report .................................................................................................................... 35
X、Catalogue of Documents for Future Reference .................................................................... 125
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 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 the semi-annual report and there
are no unfaithful facts, misleading statements or significant omissions.
Except the following directors, other directors all personally attended the meeting for
deliberating the annual report.
Absent directors Directors’ post Absent reason Authorized person
Mrs. Dai Hui Director Business trip Mr. Sun Liqiang
The Company has no plan to distribute cash dividends and bonus shares; capital reserve will
not be transferred to equity in the semi-annual.
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 semi-annual report involves in forward-looking statements about future plan etc. It bases
mainly on the basic command of economic development trend of China and the judgment of
several years of experience in this industry, with a great uncertainty. The Company does not
give the investors tangible commitment, so the investors should be in a special attention, and
choose wisely.
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 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. 2015 Semi-annual Report
II、Brief Introduction for the Company
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
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 2014 annual report for more details.
2)、Information disclosure and filing Location
Whether there is any change for the information disclosure and filling location during the report
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual 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 2014 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 2014 annual report for
more details.
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
III、 Summary of Accounting Data and Financial Indicators
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
Item In the report period the same period of
last year
last year(%)
Business revenue (CNY) 2,825,793,250.00 2,301,990,248.00 22.75%
Net profit attributed to the
shareholders of the listed 746,060,248.00 638,041,311.00 16.93%
company (CNY)
Net profit attributed to the
shareholders of the listed 739,432,003.00 629,900,854.00 17.39%
company after deducting the
irregular profit and loss (CNY)
Net cash flows from the
927,163,060.00 889,675,131.00 4.21%
operating activities (CNY)
Basic earnings (CNY) per share 1.09 0.93 17.20%
Diluted earnings (CNY) per
1.09 0.93 17.20%
share
Return on net assets (%) 10.11% 9.77% 0.34%
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) 9,379,910,798.00 8,912,232,640.00 5.25%
Net Assets attributed to the
shareholders of the listed 7,582,367,402.00 6,840,452,145.00 10.85%
company (CNY)
2. Accounting data 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.
V Available □Not available
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Net profit belonged to Net asset belonged to
shareholders of listed shareholders of listed
company company
Amount in Amount in Amount at the Amount at the
current last period end of this beginning of
period period this period
Based on
Chinese
746,060,248 638,041,311 7,582,367,402 6,840,452,145
accounting
standard
Items and amount adjusted based on international accounting standard
Based on
international
746,060,248 638,041,311 7,582,367,402 6,840,452,145
accounting
standard
2)、Difference in net profit and net asset disclosed in the financial report under the PRC accounting
standards and foreign accounting standards.
□Available V Not available
There is no difference in net profit and net asset disclosed in the financial report under the PRC
accounting standards and foreign accounting standards during the report period.
3)、Explanation of difference in accounting data based on Chinese and international accounting standards
□Available V Not available
3. Details of irregular profit and loss
V Available □Not available
Unit: CNY
Item Amount Explanation
Gain on disposal of non-current assets, including
1,421.00
the reversal of accrued impairment provision
Government grants credited in profit and loss
(except for those recurring government grants 6,527,952.00
that are closely related to the entity's operation,
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
in line with related regulations and have proper
basis of calculation)
Other non-operating expense and income 1,913,510.00
Less: Income tax effect 1,814,638.00
Total 6,628,245.00 -
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
There is no situation regarding the non-recurring profit and loss as defined and specified in the
Explanatory Announcement on Public Company‘s Information Disclosure No.1 - Non-recurring
Profit and Loss as recurrent profit and loss.
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
IV、Board of Directors’ Report
1. Summarization
During the report period, the need for high-end products in domestic wine industry was still weak, but
the consumer demand began to increase mildly in some regions; middle-and-low-end wines suitable for
the public kept favorable growth momentum. There was still strong competition existing in domestic
wine market. Facing quite a lot of external disadvantages, the Company insisted on focusing on the
market, adjusted marketing strategy and product structure, energetically developed middle-and-low-end
products, optimized market layout, perfected market channels and promoted sales of products with all
strength, preliminarily reversing the unfavorable tide about the decline of sales revenue and net profit,
and respectively accomplishing the sales revenue of CNY2825.79million with a year-on-year increase of
22.75% and net profit of CNY746.06million with a year-on-year increase of 16.93%.
2. Analysis to main business
Period comparison of main financial data
Unit: CNY
In the same More
In the report
period of last or less Reason for changes
period
year (%)
Mainly increased sales volume of
Operating revenue 2,825,793,250.00 2,301,990,248.00 22.75%
products
Mainly increased sales volume of
Operating cost 932,522,743.00 754,302,386.00 23.63%
products
Mainly increased advertising expense,
Sales expense 653,425,516.00 486,481,030.00 34.32% storage charge and salary of sales
personnel
Management Mainly increased salary of management,
119,770,340.00 103,980,497.00 15.19% administrative expense, depreciation cost,
expense building tax and other taxes
Mainly declined interest income of bank
Financial expense -3,880,903.00 -14,254,385.00 72.77% deposit and increased interest expenditure
of bank loan
Income tax Mainly increase net profit on
245,727,101.00 210,241,876.00 16.88%
expense year-on-year basis
R&D investment 5,534,562.00 5,436,054.00 1.81%
Net amount of 927,163,060.00 889,675,131.00 4.21% Mainly increased cash received by
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
cash flow products sales on year-on-year basis
generated in
operating activities
Net amount of
Mainly declined cash inflow generated by
cash flow investment activities including
withdrawal of fixed time deposit and
generated in -432,181,002.00 -240,974,464.00 -79.35%
increased cash outflow generated by
investment investment activities including purchase
and building of fixed assets
activities
Net amount of
cash flow
-23,919,692.00
generated in
financing activities
Net increased
amount of cash Mainly declined net amount of cash flow
470,554,249.00 648,662,711.00 -27.46%
and cash generated by investment activities
equivalents
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.
Review and summary of the progress situation during the report period of the Company’s
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
business plan disclosed in earlier stage
Firstly, the Company insisted on focusing on the market and conducted the marketing work with all
strength in order to strengthen the marketing capability. The company further perfected the
marketing system and evaluation method of chateau wines and defined the person responsible for the
marketing of chateau wines; strengthened the degree of media publicity and market expansion for
middle-and-low-end brands, such as Jiebaina, Zuishixian and Noble Rot and so on, improving the
competition in wine market; quickened the construction of brandy extension system, preliminarily
building the brandy marketing system that covered main cities in China; implemented the strategy of
multiple level and multiple brand for brandy, forming four brandy brands containing Franllet Cognac,
Lormin, Koyac and Gold Medal; quickened the construction work of Pioneer franchised stores and
recruitment work of shop managers, and optimized evaluation and motivation system to Pioneer
franchised stores, contributing to the benign development of Pioneer franchised stores.
Secondly, the Company continue promoting informatization construction and management
innovation. Based on the completion of the first and second phase of SAP system, the Company
proceeded the construction of the third phase of SAP system, further improving the Company‘s
informatization level; proposed and implemented more than 180 innovation and rationalization
projects, preferably solving the significant problems involved in management, production,
technology and marketing and improving the operating efficiency.
Thirdly, the Company reinforced the management of main production cost and expense to lower
production cost. The Company continued adopting centralized purchasing , effectively controlling
the procurement cost for large amounts of raw materials; strengthened the monitoring and scheduling
management of the stock and perfected production target, decreasing the occupation of funds and
loss of inventory and satisfying market demands; further strengthened the management in product
labeling and comprehensively implemented the palletization operation during the production, storage
and transportation process, improving logistics efficiency , saving package cost and lowering rate of
breakage products; optimized the salary distribution system based on per ton and perfected
performance assessment method of employee, improving the production efficiency; intensified the
management of important expenses, such as fuel and power cost, transportation expense, repair
charge and greening fee and so on, lowering the production cost.
Fourthly, the Company strengthened the construction and management in grape bases to improve the
quality of grapes. The Company conducted the construction and management in accordance with the
requirements of ―Scalization, Standardization and Mechanization ‖; imported and applied foreign
advanced and mechanized production equipments, assimilated advanced planting technology,
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
perfected the project management , budget management and evaluation system of grape bases and
strengthened the assessment and management system of people in charge of bases, effectively
lowering the planting cost, improving the grape quality and meeting the demands in adjusting
product structure.
During the second half year of 2015, the Company will mainly fulfill the following work and measures:
Firstly, the Company will keep focusing on the marketing work of chateau wines, perfect the distributor
layout and strive to break the sales bottleneck; keep consolidating the market share of Jiebaina; keep
reinforcing the degree of market development and promotion of Zuishixian and Noble Rot in order to
increase market share and achieve sales growth; adopt the way of using the minority to bring along the
majority to conduct priority exploitation in brandy business of 155 cities and push brandy to national
market step by step through the guidance of marketing innovation, accomplishing the harmonious
development in multiple liquors.
Secondly, the Company will strictly implement the budget management as well as the centralized
purchasing in raw materials, further optimize pricing model for purchasing grapes, strengthen
management of marketing expenses and improve fund utilization rate, increasing enterprise revenue.
Thirdly, based on 2015Annual Capital Expenditure Plan, the Company will reasonably arrange the
project construction scheduling, steadily promote the construction of investment projects and strictly
conduct investment budget management, in order to assure quality of project and safety in construction,
laying a solid foundation for further improvement in production capacity and optimization of
productivity structure.
Fourthly, the Company will scientifically make grape procurement plans and implementation scheme,
organize and deploy resources all around, achieve the target for purchasing grapes with the guarantee of
both quality and quantity so as to assure the supply of sufficient and superior grapes.
3. Structure of main businesses
Unit: CNY
Increase or Increase or Increase or
Gross decrease of decrease of decrease of
Operating Operating
profit operating revenue operating cost gross profit
revenue cost
(%) over the same over the same over the same
period of last period of last period of last
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
year (%) year (%) year
Sector
Wine and
alcoholic 2,822,557,981 929,890,756 67.06% 22.98% 24.26% -0.34%
beverages
Product
Wine 2,202,106,014 693,663,394 68.50% 24.75% 25.29% -0.13%
Brandy 518,662,041 177,544,632 65.77% 11.05% 12.05% -0.30%
Sparkling
12.66% 4.79% 4.64%
wine 23,174,571 14,308,023 38.26%
Other 78,615,355 44,374,706 43.55% 85.55% 96.52% -3.15%
Region
Eastern
2,432,997,278 792,452,902 67.43% 24.57% 26.05% -0.38%
Region
Middle
267,578,497 95,220,813 64.41% 14.67% 15.29% -0.20%
Region
Western
121,982,206 42,217,040 65.39% 12.28% 13.82% -0.47%
Region
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, ―Changyu‖,
―Jiebaina‖ and ―AFIP‖ 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
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
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, brandy and
sparkling wine 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)、Situation for equity investment abroad
① Situation for investment abroad
□Available V Not available
During the report period, the company did not have investment abroad.
② Situation for holding equity of financial enterprises
□Available V Not available
During the report period, the company did not hold any equity of financial enterprises.
③ Situation for security investment
□Available V Not available
During the report period, there were no security investments.
④ Situation for holding equity of other listed companies
□Available V Not available
During the report period, the company did not hold any equity of other listed companies.
2)、Trust management, derivatives investment and entrusted loans
① Situation for trust management
□Available V Not available
During the report period, the company did not have trust management.
② Situation for derivatives investment
□Available V Not available
During the report period, the company did not have derivatives investment.
③ Situation for entrusted loans
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
□Available V Not available
During the report period, the company did not have entrusted loans.
3)、Use of raised capital
□Available V Not available
During the report period, there were no use of raised capital.
4)、Analysis to the major subsidiaries and joint stock companies
V Available □Not available
Information about the major subsidiaries and joint stock companies
Unit: CNY
Company Company Main products or Registered Business Operating
Industry Total assets Net asset Net profit
name type services capital revenue profit
Yantai To research,
Changyu-
Wine and produce and sell
Castel Wine
alcoholic wine and USD 5
Chateau Co. Subsidiary 186,971,615 82,881,301 37,153,833 1,050,745 787,674
LTD. beverages sparkling wine as million
industry well as the
tourism service
Langfang Wine and
Castel-
Joint stock alcoholic To produce and USD
Changyu Wine 53,178,532 45,020,437 27,859,048 600,032 456,864
company beverages sell wine 6,108,818
Co. LTD.
industry
Beijing Subsidiary Wine and
Chateau To research,
alcoholic CNY 110
Changyu produce and sell 689,592,345 114,023,470 75,082,711 12,225,858 8,118,305
beverages million
AFIP Global brandy and wine
industry
Chateau Subsidiary Wine and
Liaoning
alcoholic To produce ice CNY 26.30
Changyu Ice 90,741,480 62,178,949 27,030,519 899,959 715,756
Wine Co., beverages wine million
Ltd. industry
Xinjiang Subsidiary Wine and To plant grape,
Tianzhu produce and sell CNY 75
alcoholic
Winery Co., grape juice, bulk 176,872,584 164,153,706 65,111,307 712,678 643,354
Ltd. beverages million
wine and fruit
industry wine
5)、Important projects financed with non-raised capital
V Available □Not available
Unit: CNY‘0000
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Actual Disclosure
Total accumulation Date
Investment
Planned investment Project
Project Name in the report Project benefits
Investme until the end progress
period
nt of the report
period
Construction of Changyu Facilities have been 2014.04.26
31,074 6,372 38,027 98.00% completed and put
Reina Chateau Sha'anxi into production.
Facilities have been 2014.04.26
Construction of Chateau
24,415 297 30,800 99.00% completed and put
Moser XV Ningxia
into production.
Facilities have been 2014.04.26
Construction of Changyu
23,343 903 32,000 99.00% completed and put
Baron Balboa Chateau XinJiang
into production.
Construction of 2014.04.26
Changyu International Wine City 65,331 20,127 60,990 75.00% 0
blending and cooling Center
http://www.c
Construction of 2014.04.26
ninfo.com.c
Changyu International Wine City 46,736 14,089 43,258 75.00% 0
n/finalpage/
Bottling Center
2014-04-26/
Construction of 2014.04.26
63928624.P
Changyu International Wine 12,095 6,038 17,382 90.00% 0 DF
City Logistics Center
Construction of Changyu Vine 2014.04.26
20,000 987 5,069 25.00% 0
and Wine Research Institute
Construction of Treasure Wine 2014.04.26
14,545 600 3,678 25.00% 0
Chateau
Construction of Koyac Brandy
16,530 0 9,800 50.00%
Chateau
Investment in landscaping 5,000 405 4,095 75.00% 0 2014.04.26
Construction of pioneer 2014.04.26
10,000 5,014 6,769 60.00% 0
franchised store
Total 269,069 54,832 251,868 -- --
6. Forecast for the operation achievements from January to September of 2015
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.
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
□Available V Not available
7. Explanation from the board of directors and the board of supervisors for the “Non-standard Audit
Report” issued by the accountant firm
□Available V Not available
8. Explanation from the board of directors for the “Non-standard Audit Report” of last year
□Available V Not available
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 5, 2015, the Company disclosed the Announcement of Dividend Distribution for the year
2014, 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 4.4 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 3.96 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 4.18 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 3.96 for per 10 shares. The differential
dividend tax rates would be adopted for the inland (overseas) individual stockholders, CNY 4.18 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, 2015 and the ex-dividend day was on July 13,
2015.
The last trading day of B Stock was on July 10, 2015, the share registration day was on July 15, 2015
and the ex-dividend day was on July 13, 2015.
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 13, 2015. The cash dividend for
Stock B holders was directly transferred to their accounts via securities service company or other
18
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
depository department on July 15, 2015. The cash dividend enjoyed by Yantai Changyu Group Co., Ltd.
was directly paid by the Company at the same time.
Special explanation
Whether it is in accordance with the requirements of the regulation in the Articles of Association and the resolution of Yes
shareholders
Whether the distribution standard and proportion is clear and definite Yes
Whether the relative decision process and mechanism is complete Yes
Whether the independent directors perform their responsibilities and play the roles. Yes
Whether the small and middle shareholders have the chance to express their advices and appeals, as well as their lawful Yes
right and interest is in an enough protection.
Whether it is legal and transparent for the condition and process while adjusting and amending the cash dividends Yes
distribution policy.
10. Preliminary schemes of profit dividend and increasing equity with capital reserve during the report
period
□Available V Not available
There is no schemes of paying cash dividend, bonus share and increasing equity with capital during the
semi-annual period.
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 Mr. Zhanglong from Essence Security
operation
2015.05.22 room of the Field survey Institution Company Limited and Mr. Ke Haidong from
situation and
Company Guo Tai Jun‘an Securities Company Limited
other issues
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
V、Major Issues
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 , established and 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. Litigation Issue
Material litigation and arbitration
□ available √not available
There are no material litigation and arbitration during the report period.
Other Litigation Issue
□ available √not available
3. Media’s doubts
□ available √not available
There are no common doubts issued by Media during the report period.
4. Bankruptcy reorganization
□ available √not available
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
□ available √not available
There is no acquisition of assets during the report period and until the report period.
2)、 Assets for sale
□ available √not available
There are no assets for sale during the report period and until the report period.
3)、Business merger
□ available √not available
There are no business merger happened in the report period and until the report period.
20
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
6. Implementations and influences of Company’s equity incentive
□ available √not available
There are no plans and implementations of Company‘s equity incentive during the report period.
21
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7. Important related transactions
1)、Related transactions in relation to routine operations
√available □not available
Proportio Approved Whether Market
Pricing Amount Settlemen
Content Price of n in the transaction or not price of
Type of principle of related t method
Related of related related same kind credit(CNY‘000 exceed securabl
Interrelationship related of related transactio of related Date of disclosure Disclosure index
party transactio transactio of 0) approve e same
transaction transactio n (CNY transactio
n n transactio d credit transacti
n 0000) n
n (%) on
Yantai Under the same Purchasing Purchasin On the Agreeme
Shenma Parent Co. and g packing base of nt price
Packagin Consign materials market
8,243 21.82% 19,000 No Cash — 2015.04.28
g Co.Ltd processing price,
packing negotiate
materials d pricing
Yantai Under the same Purchasing Purchasin On the Agreeme
http://www.cninfo.com.cn/informat
Changyu Parent Co. commoditie g liquor base of nt price
ion/companyinfo.html
Zhongya s products market
Medicine price,
247 0.65% 550 No. Cash — 2015.04.28
& negotiate
Healthy d pricing
Liquors
Co., Ltd
Yantai Under the same Purchasing Purchasin On the Agreeme
349 0.92% 100 Cash — 2015.04.28
Changyu Parent Co. commoditie g liquor base of nt price Yes.
22
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Wine s products‘ market
Culture derivative price,
Museum s negotiate
Compan d pricing
y
Yantai Under the same Purchasing Purchasin On the Agreeme
Changyu Parent Co. commoditie g liquor base of nt price
Window s products‘ market No.
24 0.06% 450 Cash — 2015.04.28
of Wine derivative price,
City Co. s negotiate
d pricing
Yantai Under the same Selling Selling On the Agreeme No.
Changyu Parent Co. commoditie liquor base of nt price
Wine s products market
Culture price, 419 0.15% 1,100 Cash — 2015.04.28
Museum negotiate
Compan d pricing
y
Yantai Under the same Selling Selling On the Agreeme No.
Changyu Parent Co. commoditie liquor base of nt price
Window s products market
371 0.13% 780 Cash — 2015.04.28
of Wine price,
City Co. negotiate
d pricing
Yantai Under the same Selling Selling On the Agreeme No.
Changyu Parent Co. commoditie liquor base of nt price
75 0.03% 270 Cash — 2015.04.28
Zhongya s products market
Medicine price,
23
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
& negotiate
Healthy d pricing
Liquors
Co., Ltd
Yantai Under the same Selling Supplying On the Agreeme
Shenma Parent Co. commoditie water, base of nt price
Packagin s power and market
3 0.00% 200
g Co.Ltd. gas price,
negotiate
d pricing
Yantai Parent Co. Leased Leasing On the Agreeme No.
Changyu assets storage base of nt price
Group market
293 0.78% 586 Cash — 2015.04.28
Co. Ltd. price,
negotiate
d pricing
Yantai Parent Co. Intangible Permissio On the Agreeme No.
Changyu assets n to use base of nt price
Group licensed the market
5,257 100.00% 9,000 Cash — 2015.04.28
Co. Ltd. use trademark price,
negotiate
d pricing
Yantai Parent Co. Intangible Permissio On the Agreeme No.
Changyu assets n to use base of nt price
Group licensed patents market
2.5 100.00% 5 Cash — 2015.04.28
Co. Ltd. use price,
negotiate
d pricing
24
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Total 15,283.5 — 32,041 -- -- -- -- --
The details of the large sales returns No.
The total amount of the transaction will be expected No.
according to its category and its actual performance
during the report period (if have)
The reasons of big differences between the No.
transaction price and the market reference price(if
available )
2)、 Related transactions in asset procurement and sale
□ available √not available
There are no related transactions in asset procurement and sale during the report period.
3)、Important related transactions in joint external investment
□ available √not available
There are no important related transactions in joint external investment during the report period.
4)、Record of related credits and liabilities
□ available √not available
There is no record of non-operating related credits and liabilities.
5)、Other important related transactions
□ available √not available
There are no other important related transactions in the report period.
25
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
8. Controlling shareholder and related party in funds occupation situation of non-operating of
the Listed Company
□ available √not available
There are no situation in controlling shareholder and related party in funds occupation of
non-operating of the Listed Company.
9. Major and important contracts and execution results
1)、Trusteeship, contract and leasehold issues
① Trusteeship situation
□ available √not available
There are no trusteeships happened during the report period
② Contract situation
√available □not available
The explanation of Contract situation
Yantai Changyu-Castel Wine Chateau Co., Ltd. is a Sino-foreign joint venture established by the
Company and a foreign investor. According to the contract operation agreement signed by the
Company and the foreign investor, the Company uses the form of paying the contract fee and has the
full power to control its strategic operating, investing and financing policies. The agreement will be
terminated on 31st December 2022.
Langfang Castel-Changyu Wine Co., Ltd. is a Sino-foreign joint venture established by the Company
and a foreign investor. According to the contract operation agreement signed by the Company and
the foreign investor, the Company uses the form of paying the contract fee and has the full power to
control its strategic operating, investing and financing policies. The agreement will be terminated
on 31st December 2022.
Chateau Changyu AFIP Global Co., Ltd. is a Sino-foreign joint venture established by the Company
and a domestic investor. According to the contract operation agreement signed by the Company and
the foreign investor, the Company uses the form of paying the contract fee and has the full power to
control its strategic operating, investing and financing policies. The agreement will be terminated
on 2nd September 2019.
Chateau Liaoning Changyu Ice Wine Co., Ltd. is a Sino-foreign joint venture established by the
Company and a foreign investor. According to the contract operation agreement signed by the
Company and the foreign investor, the Company uses the form of paying the contract fee and has the
full power to control its strategic operating, investing and financing policies. The agreement will be
terminated on 31st December, 2016.
Beijing Changyu AFIP tourist culture Co., Ltd. is a Sino-foreign joint venture established by the
Company and a domestic investor. According to the contract operation agreement signed by the
26
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Company and the foreign investor, the Company uses the form of paying the contract fee and has the
full power to control its strategic operating, investing and financing policies. The agreement will be
terminated on 2th September 2019.
Project in gains and losses for the Company to achieve more than 10% of the total profit
□ Available √ Not Available
There are no contract projects in gains and losses for the Company to achieve more than 10% of the
total profit during the report period.
③Leasehold situation explanation
√available □not available
st
On 1 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
□ Available √ Not Available
There are no leasehold projects in gains and losses for the Company to achieve more than 10% of the
total profit during the report period.
2)、Guarantee situation
□ available √not available
There are no guarantees situation during the report period.
3)、 Other important contracts
□ available √not available
There are no other important contracts during the report period.
4)、 Other substantial transaction
□ available √not available
There is no other substantial transaction during the report period.
10. The commitments of the Company or shareholders of the Company holding more than 5%
during the report period or until the report period
√available □not available
Commit
Commitment Commitment
Commitments Commitment content ment Implementation
Party time
period
Commitments at share reform - －
27
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Commitments made in acquisition
- - - -
report or equity changes report
Commitments at asset restructuring - - - -
Yantai Changyu Has been
Non Intra-industry competition 1997.05.18 Forever
Group Co, Ltd performed
According to "Trademark License Contract",
the Company will pay trademark royalty for
Commitments at the initial public
the "Changyu"products of Yantai Changyu
offering or refinancing Yantai Changyu Has been
Group Co., Ltd every year, Yantai Changyu 1997.05.18 Forever
Group Co., Ltd performed
Group Co., Ltd will use trademark to
advertise Changyu trademarks and the
Contract products.
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
11. The appointment and dismissal of certified public accountants
Whether or not semi-annual financial report has been audited.
□Yes √ No
The semi-annual financial report has not been audited.
12. Punishment and rectification
□ available √ not available
There is no punishment and rectification situation happened during the report period.
13. Withdrawal risk revelation of violating laws and rules
□ available √ not available
There is no withdrawal risk revelation of violating laws and rules during the report period.
14. Explanation for other significant matters
□ available √ not available
There are no other significant matters during the report period.
28
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
VI、Changes in Shares and the Shareholders’ Situation
1. Changes in shares
Unit: Share
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
29
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
2. The number of shareholders of the Company and the shareholdings
Unit: share
Total number of
preferred
shareholder
Total common shareholders at the end of
38,450 recovering 0
report period
voting power at the
end of report period (if
have) (See note 8))
Shareholders holding more than 5% or become a top 10 shareholders.
Number Pledged or frozen
Changes
Shares held of Number of
Percenta
Character of until the end during the
Name of Shareholders ge restricte unrestricted Amou
shareholders of the report report Share status
(%) d shares
period nt
period
shares
Domestic
YANTAI CHANGYU GROUP CO.
non-state-owned 50.40% 345,473,856 0 0 345,473,856 0
LTD.
legal person
Foreign
GAOLING FUND,L.P. 3.11% 21,300,919 -2,876,078 0 21,300,919 0
shareholder
BBH BOS S/A FIDELITY FD - Foreign
2.27% 15,576,126 -530,200 0 15,576,126 0
CHINA FOCUS FD shareholder
GREENWOODS CHINA ALPHA Foreign
1.04% 7,117,471 7,117,471 0 7,117,471 0
MASTER FUND shareholder
MORGAN STANLEY & CO. Foreign
0.76% 5,221,972 2,260,964 0 5,221,972 0
INTERNATIONAL PLC shareholder
Foreign
NORGES BANK 0.66% 4,511,246 0 0 4,511,246 0
shareholder
VALUE PARTNERS CHINA Foreign
0.61% 4,201,626 4,201,626 0 4,201,626 0
GREENCHIP FUND LTD shareholder
Foreign
GIC PRIVATE LIMITED 0.59% 4,056,859 -5,856,625 0 4,056,859 0
shareholder
BBH A/C VANGUARD EMERGING Foreign
0.57% 3,888,887 -62,100 0 3,888,887 0
MARKETS STOCK INDEX FUND shareholder
Tian‘an Property insurance CO.,
Others 0.56% 3,828,575 3,828,575 0 3,828,575 0
LTD—Baoying No. 1
Strategic investors or legal result of the placement of
No
new shares to become a top 10 shareholders(if have)(see
30
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
note3)
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
Number of Type of share
unrestricted
Name of Shareholders shares held until
Type of share Amount
the end of the
report period
YANTAI CHANGYU GROUP CO., LTD. 345,473,856 A share 345,473,856
GAOLING FUND,L.P. 21,300,919 B share 21,300,919
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 15,576,126 B share 15,576,126
GREENWOODS CHINA ALPHA MASTER FUND 7,117,471 B share 7,117,471
MORGAN STANLEY & CO. INTERNATIONAL PLC 5,221,972 B share 5,221,972
NORGES BANK 4,511,246 B share 4,511,246
VALUE PARTNERS CHINA GREENCHIP FUND LTD 4,201,626 B share 4,201,626
GIC PRIVATE LIMITED 4,056,859 B share 4,056,859
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND 3,888,887 B share 3,888,887
Tian‘an Property insurance CO., LTD—Baoying No. 1 3,828,575 A share 3,828,575
Among the top 10 shareholders, Yantai Changyu
The explanation for the associated relationship and accordant action of the top 10
Group Company Limited has no associated
shareholders with unrestricted shares, the the associated relationship and accordant
relationship or accordant action relationship with the
action between the top 10 shareholders with unrestricted shares and the top 10
other 9 listed shareholders, and the relationship
shareholders
among the other shareholders is unknown.
Explanation for the Top 10 shareholders who involved in financing activities and The top 10 Shareholders is not involved in financing
stock trading business (if have)(see Note4) activities and stock trading business.
Whether or not to be agreed to buy back trading by Company shareholders during the report period
□ Yes √ No
There is no agreed to buy back trading by Company shareholders during the report period.
3. 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
31
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
There is no any Change of the actual controllers during the report period
4. Company’s shareholders and Consistent behavior person offer or carry out the plan of
increasing rights issue during the period.
□ available √ not available
In the context of Company known, Company‘s shareholders and Consistent behavior person did not
offer or carry out the plan of increasing rights issue during the period.
32
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
VII、elative situation for preferred Shares
□ available √ not available
There is no preferred shares during the report period.
33
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
VIII、Situation for Directors, Supervisors, Senior Management
1. Changes in shareholdings of directors, supervisors and senior management
□ available √ not available
There are no any change in shareholdings of directors, supervisors and senior management during
the report period, details see 2014 annual report
2. Personnel changes in Company's directors, supervisors and senior management
□ available √ not available
There are no any personnel changes in Company‘s directors, supervisors and senior management
during the report period, details see 2014 annual report.
34
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
IX、Financial Report
1. Audit report
Whether the semi-annual report has been audited
□ Yes √ No
The semi-annual report has not been audited.
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:
Monetary fund 7.1 1,586,965,072 1,145,365,071
Settlement provisions
Lending funds
Financial assets measured at the fair value and the variation of which is
recorded into the current profit and loss
Derivative financial assets
Bills receivable 7.2 335,703,960 138,315,319
Accounts receivables 7.3 130,804,645 145,672,411
Advances to suppliers 7.4 1,862,640 8,073,786
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Interest receivable 7.5 5,730,457 3,619,429
Dividends receivable
Other receivables 7.6 46,530,335 31,362,302
Buy-in/sell-out financial assets
Inventories 7.7 1,493,395,591 2,087,376,398
Assets classified as holding and available for sale
Non-current asset expire in a year
Other current assets 33,783,630 29,662,076
Total current assets 3,634,776,330 3,589,446,792
Non-current assets:
Offering loans and imprest
Available for sale financial assets 7.8
Held-to-maturity investment
Long-term receivables
Long-term equity investments
35
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Note Ending balance Beginning balance
Investment real estate
Fixed assets 7.9 2,502,989,532 2,532,682,355
Construction in progress 7.10 2,149,336,789 1,700,466,500
Construction materials
Fixed assets disposal
Productive biological assets 7.11 174,987,484 151,723,241
Oil and gas assets
Intangible assets 7.12 453,157,229 452,951,194
Development expenditure
Goodwill 7.13 13,112,525 13,112,525
Long-term prepaid expense 7.14 213,710,601 201,911,605
Deferred tax assets 7.15 222,088,703 254,186,823
Other non-current assets 7.16 15,751,605 15,751,605
Total non-current assets 5,745,134,468 5,322,785,848
Total assets 9,379,910,798 8,912,232,640
Current liabilities:
Short-term loan 7.17 300,000,000 300,000,000
Borrowings from the Central Bank
Customer and interbank deposits
Borrowing funds
Financial liabilities measured at the fair value and the variation of which
is recorded into the current profit and loss
Derivative financial liabilities
Bills payable 7.18 10,000,000
Accounts payables 7.19 126,564,586 357,811,822
Advances from customers 7.20 248,266,622 215,127,598
Sales/buyback financial assets
Payable handling fees and commission
Employee benefits 7.21 120,755,414 158,948,592
Taxes payable 7.22 -33,897,202 87,504,048
Interest payable 7.23 5,891,499 3,475,641
Dividends payable
Other payables 7.24 583,730,704 469,804,317
Dividend payable for reinsurance
Reserves for insurance contracts
Acting trading securities
Acting underwriting securities
Liabilities classified as holding and available for sale
Non-current liability expire in a year
Other current liabilities 7.25 12,398,717 12,398,718
Total current liabilities 1,363,710,340 1,615,070,736
Non-current liabilities:
Long-term borrowings 7.26 188,566,200 209,380,000
Bonds payable
Including: Preferred stock
Perpetual capital securities
Long-term accounts payable
36
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Note Ending balance Beginning balance
Long-term employee compensation payable
Special accounts payable
Estimated liabilities
Deferred income 7.27 74,015,234 76,024,992
Deferred tax liabilities 4,512,491 4,565,636
Other non-current liabilities 7.28 3,998,352 3,998,352
Total non-current liabilities 271,092,277 293,968,980
Total liabilities 1,634,802,617 1,909,039,716
Owner’s equity:
Capital stock 7.29 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual capital securities
Capital surplus 7.30 563,139,042 563,139,042
Minus: treasury stock
Other comprehensive income 7.31 -6,948,262 -2,803,271
Special reserves
Surplus reserve 7.32 342,732,000 342,732,000
General risk preparation
Retained earnings 7.33 5,997,980,622 5,251,920,374
Total owner‘s equity of the parent company 7,582,367,402 6,840,452,145
Minority shareholder interests 162,740,779 162,740,779
Total owner‘s equities 7,745,108,181 7,003,192,924
Total liabilities and owner‘s equities 9,379,910,798 8,912,232,640
The Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:
Jiang Jianxun
37
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
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:
Monetary fund 474,290,805 496,138,263
Financial assets measured at the fair value and the variation of which is
recorded into the current profit and loss
Derivative financial assets
Bills receivable 202,853,298 98,158,251
Accounts receivables 15.1 142,139 1,516,518
Advances to suppliers 539,254 1,710,787
Interest receivable 5,730,457 3,580,811
Dividends receivable 350,004,131 402,596,884
Other receivables 15.2 4,417,682,191 4,708,836,276
Inventories 762,860,931 681,696,774
Assets classified as holding and available for sale
Non-current asset expire in a year
Other current assets 17,724,270 14,996,807
Total current assets 6,231,827,476 6,409,231,371
Non-current assets:
Available for sale financial assets
Held-to-maturity investment
Long-term receivables
Long-term equity investments 15.3 1,093,087,027 1,093,437,027
Investment real estate
Fixed assets 385,985,776 403,210,655
Construction in progress 297,988 182,765
Construction materials
Fixed assets disposal
Productive biological assets 99,290,127 83,631,722
Oil and gas assets
Intangible assets 75,571,102 76,760,678
Development expenditure
Goodwill
Long-term prepaid expense
Deferred tax assets 16,745,491 27,053,571
Other non-current assets
Total non-current assets 1,670,977,511 1,684,276,418
Total assets 7,902,804,987 8,093,507,789
Current liabilities:
Short-term loan 300,000,000 300,000,000
Financial liabilities measured at the fair value and the variation of
which is recorded into the current profit and loss
Derivative financial liabilities
Bills payable
Accounts payables 227,589,429 228,052,722
Advances from customers
38
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Note Ending balance Beginning balance
Employee benefits 54,840,098 70,233,251
Taxes payable -2,583,832 18,205,124
Interest payable 5,891,499 3,475,641
Dividends payable
Other payables 837,015,610 1,030,604,819
Liabilities classified as holding and available for sale
Non-current liability expire in a year
Other current liabilities 3,017,898 3,017,898
Total current liabilities 1,425,770,702 1,653,589,455
Non-current liabilities:
Long-term borrowings 188,566,200 209,380,000
Bonds payable
Including: Preferred stock
Perpetual capital securities
Long-term accounts payable
Long-term employee compensation payable
Special accounts payable
Estimated liabilities
Deferred income 21,238,965 22,747,915
Deferred tax liabilities
Other non-current liabilities 1,895,828 1,895,828
Total non-current liabilities 211,700,993 234,023,743
Total liabilities 1,637,471,695 1,887,613,198
Owner’s equity:
Capital stock 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual capital securities
Capital surplus 557,222,454 557,222,454
Minus: treasury stock
Other comprehensive income
Special reserves
Surplus reserve 342,732,000 342,732,000
Retained earnings 4,679,914,838 4,620,476,137
Total owner‘s equities 6,265,333,292 6,205,894,591
Total liabilities and owner‘s equities 7,902,804,987 8,093,507,789
The Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:
Jiang Jianxun
39
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
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 2,825,793,250 2,301,990,248
Including: Operating income 7.34 2,825,793,250 2,301,990,248
Interest income
Earned premium
Handling fees and commission income
2. Total operating costs 1,842,448,784 1,462,946,341
Including: Operating costs 7.34 932,522,743 754,302,386
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 7.35 140,611,088 132,436,813
Selling expenses 7.36 653,425,516 486,481,030
Administrative expenses 7.37 119,770,340 103,980,497
Financial expenses 7.38 -3,880,903 -14,254,385
Loss for impairment of assets
Plus: Fair value charge profit (loss is listed with "-")
Investment profit (loss is listed with "-")
Including: Investment profit for joint-run business and joint
venture
Exchange income (loss is listed with "-")
3. Operating profit (loss is listed with "-") 983,344,466 839,043,907
Plus: Non-operating income 7.39 8,796,834 9,444,796
Including: Gains on disposal of non-current assets 2,985
Minus: Non-operating expenses 7.40 353,951 205,516
Including: Losses on disposal of non-current assets 1,564 10,897
4. Total profits (total loss is listed with "-") 991,787,349 848,283,187
Minus: Income taxes 7.41 245,727,101 210,241,876
5. Net profit (net loss is listed with "-") 746,060,248 638,041,311
Attributable to owner of the parent company 746,060,248 638,041,311
Minority shareholder interests
6. Net after-tax amount of other comprehensive income 7.42 -4,144,991 -269,603
Net after-tax amount of other comprehensive income attributable to
-4,144,991 -269,603
owner of the parent company
6.1 Other comprehensive earnings not to be reclassified into profit
and loss later
6.1.1 Net liabilities or net assets change after remeasuring and
resetting the benefit plans
6.1.2 Share enjoyed in other comprehensive earnings not to be
reclassified into profit and loss in invested unit under equity law
6.2 Other comprehensive earnings to be reclassified into profit and -4,144,991 -269,603
40
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
loss later
6.2.1 Share enjoyed in other comprehensive earnings to be
reclassified into profit and loss in invested unit under equity law
6.2.2 Profit and loss from changes in fair value of financial assets for
sale
6.2.3 Profit and loss from reclassification of held-to-maturity
investment into fair value of financial assets for sale
6.2.4 Effective part of profit and loss of cash-flow hedge
6.2.5 Difference in translation of Foreign Currency Financial
-4,144,991 -269,603
Statement
6.2.6 Others
Net after-tax amount of other comprehensive income attributable to
minority shareholders
7. Total comprehensive income 741,915,257 637,771,708
(1) Attributable to owner of the parent company 741,915,257 637,771,708
(2) Attributable to minority shareholders
8. Earnings per share
(1) Basic earnings per share 1.09 0.93
(2) Diluted earnings per share 1.09 0.93
The Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:
Jiang Jianxun
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
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 15.4 689,053,229 689,897,279
Minus: Operating costs 15.4 548,385,836 565,744,989
Taxes and surcharges 75,959,486 75,738,343
Selling expenses
Administrative expenses 57,715,566 49,958,367
Financial expenses -7,041,547 -10,409,383
Loss for impairment of assets
Plus: Fair value charge profit (loss is listed with "-")
Investment profit (loss is listed with "-") 15.5 46,770,286 65,474,283
Including: Investment profit for joint-run business and joint venture
2. Operating profit (loss is listed with "-") 60,804,174 74,339,246
Plus: Non-operating income 3,158,421 2,153,759
Including: Gains on disposal of non-current assets
Minus: Non-operating expenses 301,089
Including: losses on disposal of non-current assets
3. Total profits (total loss is listed with "-") 63,661,506 76,493,005
Minus: Income tax 4,222,805 2,754,680
4. Net profit (net loss is listed with "-") 59,438,701 73,738,325
5. Net after-tax amount of other comprehensive income
5.1 Other comprehensive earnings not to be reclassified into profit
and loss later
5.1.1 Net liabilities or net assets change after remeasuring and
resetting the benefit plans
5.1.2 Share enjoyed in other comprehensive earnings not to be
reclassified into profit and loss in invested unit under equity law
5.2 Other comprehensive earnings to be reclassified into profit and
loss later
5.2.1 Share enjoyed in other comprehensive earnings to be
reclassified into profit and loss in invested unit under equity law
5.2.2 Profit and loss from changes in fair value of financial assets for
sale
5.2.3 Profit and loss from reclassification of held-to-maturity
investment into fair value of financial assets for sale
5.2.4 Effective part of profit and loss of cash-flow hedge
5.2.5 Difference in translation of Foreign Currency Financial
Statement
5.2.6 Others
6. Total comprehensive income 59,438,701 73,738,325
7. Earnings per share
(1) Basic earnings per share 0.09 0.11
(2) Diluted earnings per share 0.09 0.11
The Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:
Jiang Jianxun
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
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 2,745,943,886 2,562,811,996
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
insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment funds
Net increase after disposal of financial assets measured at the fair
value and the variation of which is recorded into the current profit
and loss
Cash received from collecting interest, handling fees and
commission
Net increase in borrowings
Net increase in repurchasement business funds
Tax refund received
Other cash received related to operating activities 8,212,963 8,348,936
Subtotal of cash flows of operating activities 2,754,156,849 2,571,160,932
Cash paid for goods and services 377,725,712 386,315,147
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 205,574,897 177,188,827
Cash paid for taxes and expenses 853,362,703 784,526,070
Other cash paid related to operating activities 390,330,477 333,455,757
Sub-total of cash outflows of operating activities 1,826,993,789 1,681,485,801
Net cash flow from operating activities 927,163,060 889,675,131
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term of over 3 months 26,245,259 218,392,728
Cash received from obtaining investment profit 859,212 6,572,323
Cash received from disposal of fixed assets, intangible assets and
100 100
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 27,104,571 224,965,151
Cash paid to acquire fixed assets, intangible assets and other
452,285,573 398,392,132
long-term assets
Cash for investment
Cash paid to buy fixed deposit with the term of over 3 months 7,000,000 67,547,483
Net increase in hypothecated loan
Net cash paid to acquire branch and other business unit
43
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Sum of current period Sum of prior period
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 459,285,573 465,939,615
Net cash flow from investing activities -432,181,002 -240,974,464
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 15,562,400
Cash paid to distribute dividend, profit or pay interest 8,357,292
Including: dividend and profit paid to minority shareholders by
branch
Other cash paid related to financing activities
Subtotal of cash outflows of financing activities 23,919,692
Net cash flow from financing activities -23,919,692
4. Influences of exchange rate fluctuation on cash and cash
-508,117 -37,956
equivalents
5. Net Increase in cash and cash equivalents 470,554,249 648,662,711
Plus: balance at the beginning of the period of cash and cash
960,472,274 956,558,932
equivalents
6. Balance at the end of the period of cash and cash equivalents 1,431,026,523 1,605,221,643
The Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:
Jiang Jianxun
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 373,810,768 457,521,916
Tax refund received
Other cash received related to operating activities 22,816,369 169,506,621
Subtotal of cash flows of operating activities 396,627,137 627,028,537
Cash paid for goods and services 197,172,825 200,573,384
Cash paid to and on behalf of employees 80,634,457 57,999,162
Cash paid for taxes and expenses 122,745,455 150,308,754
Other cash paid related to operating activities 22,075,594 16,542,221
Sub-total of cash outflows of operating activities 422,628,331 425,423,521
Net cash flow from operating activities -26,001,194 201,605,016
44
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Sum of current period Sum of prior period
2. Cash flow from investing activities:
Cash received from return of investment 350,000
Fixed deposit with the term of over 3 months 26,245,259 218,392,728
Cash received from obtaining investment profit 47,629,498 72,046,606
Net cash received from disposal of fixed assets, intangible assets
and other long-term assets
Net cash received from disposal of branch and other business unit
Other cash received related to investing activities
Subtotal of cash flows of investment activities 74,224,757 290,439,334
Cash paid to acquire fixed assets, intangible assets and other
20,197,080 25,546,521
long-term assets
Cash for investment
Cash paid to buy fixed deposit with the term of over 3 months 7,000,000 44,547,483
Net cash paid to acquire branch and other business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 27,197,080 70,094,004
Net cash flow from investing activities 47,027,677 220,345,330
3. Cash flow from financing activities
Cash received from acquiring investment
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 15,562,400
Cash paid to distribute dividend, profit or pay interest 8,357,292
Other cash paid related to financing activities
Subtotal of cash outflows of financing activities 23,919,692
Net cash flow from financing activities -23,919,692
4. Influences of exchange rate fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash equivalents -2,893,209 421,950,346
Plus: balance at the beginning of the period of cash and cash
333,245,466 197,150,989
equivalents
6. Balance at the end of the period of cash and cash equivalents 330,352,257 619,101,335
The Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager:
Jiang Jianxun
45
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
2.7 Consolidated owner’s equity changing list
Unit: Yuan
Current period
Owners‘ equity of the parent company
Item Other equity instruments Minority
Capital Capital Minus: Other
Special Surplus General Undistributed shareholders‘ Total owners‘
Preferred
Perpetual Treasury comprehensive reserves risk equity equity
stock Capital Others reserves stock income reserves preparation profits
stock
Securities
1. Balance at the end of last year 685,464,000 563,139,042 -2,803,271 342,732,000 5,251,920,374 162,740,779 7,003,192,924
Plus: Accounting policies changing
Previous error correction
Business combination under common control
Others
2. Balance at the beginning of this year 685,464,000 563,139,042 -2,803,271 342,732,000 5,251,920,374 162,740,779 7,003,192,924
3. Increasing or reducing amount of this period -4,144,991 746,060,248 741,915,257
(reducing amount is listed with "-")
3.1 Total comprehensive income -4,144,991 746,060,248 741,915,257
3.2 Owners' invested and reduced capital
3.2.1 Shareholders‘ invested common stock
3.2.2 Other equity instrument holders‘ invested
capital
3.2.3 Amount of shares paid and reckoned in
owners' equity
3.2.4 Others
3.3 Profit distribution
3.3.1 Drew surplus reserves
3.3.2 Drew general risk preparation
3.3.3 Distribution to owners (or shareholders)
3.3.4 Others
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and increased
capital (or capital stock)
46
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
3.4.2 Surplus reserves transferred and increased
capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Others
3.5 Special reserves
3.5.1 Withdrawal of this period
3.5.2 Usage of this period
3.6 Others
4. Balance at the end of this period 685,464,000 563,139,042 -6,948,262 342,732,000 5,997,980,622 162,740,779 7,745,108,181
Unit: Yuan
Prior period
Owners‘ equity of the parent company
Item Other equity instruments Minority
Minus: General Total owners‘
Undistributed shareholders‘
Other
Capital Perpetual Capital Special Surplus equity
stock Preferred reserves Treasury comprehensive reserves reserves risk profits equity
Capital Others stock income preparation
stock
Securities
1. Balance at the end of last year 685,464,000 563,139,042 342,732,000 4,616,944,663 162,740,779 6,371,020,484
Plus: Accounting policies changing
Previous error correction
Business combination under common control
Others
2. Balance at the beginning of this year 685,464,000 563,139,042 342,732,000 4,616,944,663 162,740,779 6,371,020,484
3. Increasing or reducing amount of this period
-2,803,271 634,975,711 632,172,440
(reducing amount is listed with "-")
3.1 Total comprehensive income -2,803,271 977,707,711 974,904,440
3.2 Owners' invested and reduced capital
3.2.1 Shareholders‘ invested common stock
3.2.2 Other equity instrument holders‘ invested
capital
3.2.3 Amount of shares paid and reckoned in
owners' equity
47
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
3.2.4 Others
3.3 Profit distribution -342,732,000 -342,732,000
3.3.1 Drew surplus reserves
3.3.2 Drew general risk preparation
3.3.3 Distribution to owners (or shareholders) -342,732,000 -342,732,000
3.3.4 Others
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and increased
capital (or capital stock)
3.4.2 Surplus reserves transferred and increased
capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Others
3.5 Special reserves
3.5.1 Withdrawal of this period
3.5.2 Usage of this period
3.6 Others
4. Balance at the end of this period 685,464,000 563,139,042 342,732,000 5,251,920,374 162,740,779 7,003,192,924
-2,803,271
48
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
Current period
Item Other equity instruments Minus: Other
Capital Capital Special Surplus Undistributed Total owners‘
stock Preferred Perpetual Capital reserves Treasury comprehensive reserves reserves profits equity
Others stock income
stock Securities
1. Balance at the end of last year 685,464,000 557,222,454 342,732,000 4,620,476,137 6,205,894,591
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 685,464,000 557,222,454 342,732,000 4,620,476,137 6,205,894,591
3. Increasing or reducing amount of this period (reducing
59,438,701 59,438,701
amount is listed with "-")
3.1 Total comprehensive income 59,438,701 59,438,701
3.2 Owners' invested and reduced capital
3.2.1 Shareholders‘ invested common stock
3.2.2 Other equity instrument holder‘ invested capital
3.2.3 Amount of shares paid and reckoned in owners'
equity
3.2.4 Others
3.3 Profit distribution
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or shareholders)
3.3.3 Others
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and increased capital (or
capital stock)
3.4.2 Surplus reserves transferred and increased capital (or
capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Others
3.5 Special reserves
3.5.1 Withdrawal of this period
49
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
3.5.2 Usage of this period
3.6 Others
4. Balance at the end of this period 685,464,000 557,222,454 342,732,000 4,679,914,838 6,265,333,292
Unit: Yuan
Prior period
Other equity instruments Minus: Other
Item Capital Capital Special Surplus Undistributed Total owners‘
stock Preferred Perpetual capital reserves Treasury comprehensive reserves reserves profits equity
Others stock income
stock securities
1. Balance at the end of last year 685,464,000 557,222,454 342,732,000 3,811,446,092 5,396,864,546
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 685,464,000 557,222,454 342,732,000 3,811,446,092 5,396,864,546
3. Increasing or reducing amount of this period (reducing 809,030,045 809,030,045
amount is listed with "-")
3.1 Total comprehensive income 1,151,762,045 1,151,762,045
3.2 Owners' invested and reduced capital
3.2.1 Shareholders‘ invested common stock
3.2.2 Other equity instrument holder‘ invested capital
3.2.3 Amount of shares paid and reckoned in owners'
equity
3.2.4 Others
3.3 Profit distribution -342,732,000 -342,732,000
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or shareholders) -342,732,000 -342,732,000
3.3.3 Others
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and increased capital (or
capital stock)
3.4.2 Surplus reserves transferred and increased capital (or
capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Others
50
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
3.5 Special reserves
3.5.1 Withdrawal of this period
3.5.2 Usage of this period
3.6 Others
4. Balance at the end of this period 685,464,000 557,222,454 342,732,000 4,620,476,137 6,205,894,591
51
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
3. Basic information of this company
Yantai Changyu Pioneer Wine Co., Ltd. (the ―Company‖, the ―Joint-stock Company‖ or ―the Group‖) was
incorporated as a joint stock limited company in accordance with the Company Law of the People‘s
Republic of China (the ―PRC‖) in the merger and reorganization carried out by Yantai Changyu Group Co.,
Ltd. (―Changyu Group Company‖) with its assets and liabilities in relation to wine business. The Company
and its subsidiary companies (hereinafter uniformly referred to as the ―Group‖) are principally engaged in
the production and sales of wine, brandy and champagne. The registered address of the Company is
Yantai City, Shandong Province, and the office address of the headquarters is 56 Dama Road, Zhifu District,
Yantai City, Shandong Province.
By June 30, 2015, the Company had issued 685,464,000 shares accumulatively. Refer to Note 7.29 for the
details.
The parent company of the Group is Changyu Group Company incorporated in China, which was
ultimately controlled by Yantai Guofeng Investment Holding Co., Ltd., ILLVA Saronno Holding SPA,
International Finance Corporation and Yantai Yuhua Investment and Development Co., Ltd.
The subsidiaries and the consolidated financial statement of the Company were approved by the Board of
Directors on August 26, 2015.
The scope of the consolidated financial statement in this year can be seen in Note 9 ―Equity in other
entities‖. The scope changes of the consolidated financial statement in this year can be seen in Note 8
―Changes of the consolidated scope‖.
4. Basis of preparation of financial statement
4.1 Basis of preparation
The Group implements the Accounting Standards for Business Enterprises (including the new and revised
editions published in 2014) (―ASBE‖) published by the Ministry of Finance and relevant regulations
thereof. In addition, the Group also discloses relevant financial information in accordance with Information
Disclosure and Preparation Rules for Enterprises Publically Issuing Securities No.15 ---- General Rules
for Financial Statement (Revised in 2014).
Note-accounting basis and pricing principle
The note-accounting basis of financial accounting adopted by the Group is accrual system and 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 relevant
accounting standards.
When the historical cost measurement is used, the assets are measured by the amount of cash or cash
equivalent when the assets are purchased or the fair value of the consideration. The liabilities are measured
by the actually received funds or assets for performing the current obligations, or the contract amount for
performing the current obligations, or the amount of cash or cash equivalent paid for anticipated liabilities
in the daily activities.
Fair value refers to a price received for selling an asset or paid for transferring a liability by the market
participant in orderly transactions on the measurement date. No matter the fair value is observable or
estimated by the valuation technique, the fair value measured and disclosed in this financial statement is
recognized on this basis.
The fair value measurement is divided into three levels based on the observable degree of the input fair
value and the importance of this input value on the whole fair value measurement:
52
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
*The input value of the first level is the unadjusted price of the same assets or liabilities which can be
acquired in an active market on the measurement date.
*The input value of the second level is the directly or indirectly observable input value of relevant assets or
liabilities except that of the first level.
*The input value of the third level is the unobservable input value of relevant assets or liabilities.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30, 2015, and no
issues and situations causing major doubts to this ability are found. Therefore, this financial statement is
prepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of ASBE and gives a true and integrate view of the
financial status and the consolidated financial status as at June 30, 2015, and the operating result, the
consolidated operating result, the cash flow and the consolidated cash flow of the Company from January
to June 2015.
5.2 Accounting period
The accounting period of the Group is from January 1 to December 31.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for processing to the
cash or cash equivalent is realized. The operating cycle of the Company is 12 months.
5.4 Reporting currency
Since Renminbi (RMB) is the currency of the main economic environment in which the Company and the
domestic subsidiary companies thereof are situated, the Company and the subsidiary companies thereof
adopt RMB as the reporting currency. The overseas subsidiary companies thereof determine Euro as the
reporting currency according to the main economic environment in which they are situated. The currency
in this financial statement prepared by the Group is RMB.
5.5 Accounting treatment method for business combination under common control and
non-common control
5.5.1 Business combination and goodwill under non-common control
A business combination under non-common control is a business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties before and after the
combination.
The combination cost shall be the fair value of the assets paid, the liabilities incurred or assumed or the
equity instruments issued by the acquirer in exchange for the control over the acquiree. The intermediary
expenses such as audit, legal services and assessment consultation and other related management expenses
paid by the acquirer for business combination are included in the current profit and loss when they occur.
The identifiable assets, liabilities and contingent liabilities which are obtained from the acquiree in the
business combination and meet the recognition conditions shall be measured on the acquisition date
according to the fair value thereof.
If the combination cost is larger than the fair value of the identifiable net assets obtained from the acquire
during the combination, the difference shall be recognized as business goodwill and initially measured
according to the cost thereof.
The goodwill formed due to business combination shall be separately listed in the consolidated financial
53
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
statement and measured on the basis of the cost minus the accumulative impairment provision.
5.6 Compiling methods of consolidated financial statement
The consolidation scope of the consolidated financial statement is determined on the basis of control.
Control means that the investor holds the power in the investor, obtains variable returns by participating in
relevant activities of the invested party and has the ability to affect the amount of the returns by using the
power on the invested party. Once any change of the relevant facts and situations results in any change of
relevant elements of the above definition of Control, the Group will carry out reappraisal.
The merger of any subsidiary company starts from the date when the Group acquires the power to control
this subsidiary company, while the termination of any subsidiary company ends in the date when the Group
losses the power to control this subsidiary company.
As for any subsidiary company disposed by the Group, the business result and the cash flow thereof before
the disposal date (date of losing control power) shall have been properly included in the consolidated
income statement and the consolidated cash flow statement.
As for any subsidiary company obtained in a business combination under non-common control, the
business result and the cash flow thereof since the acquisition date (date of obtaining control power) shall
have been properly included in the consolidated income statement and the consolidated cash flow
statement.
The principal accounting policies and accounting period adopted by the subsidiary companies shall be
determined in accordance with the accounting policies and accounting period uniformly regulated by the
Company.
The influence of the internal transaction between the Company and the subsidiary companies as well as
among subsidiary companies on the consolidated financial statement shall be neutralized at the time of
combination.
The shares in the owner's equity of the subsidiary companies, which do not belong to the parent company,
shall be recognized as the minority equity and listed under the item of ―minority equity‖ of the owner‘s
equity in the balance sheet. The shares in the current profit and loss of the subsidiary companies, which
belong to the minority equity, shall be listed under the item of ―minority equity‖ of the net profit in the
consolidated income statement.
If the loss of the subsidiary companies borne by minority shareholders exceeds the shares of the owner's
equity entitled therein by the minority shareholders at the beginning of the term, the difference shall be still
credited against the minority equity.
5.7 Recognition standards of cash and cash equivalents
Cash comprises cash on hand and demand deposit of the Company. Cash equivalents refer to short-term
highly liquid investments which are readily convertible into known amount of cash with an insignificant
risk of changes in value.
5.8 Foreign currency transaction and foreign currency statement translation
5.8.1 Foreign currency transaction
At the time of initial recognition of a foreign currency transaction, the amount of the foreign currency shall
be translated into the amount of the reporting currency at the spot exchange rate on the transaction date.
The monetary items of the foreign currency transaction shall be translated into RMB at the spot change
rate on the balance sheet date. The currency translation difference generated by the difference between the
spot change rate on the balance sheet date and the spot change rate at the initial recognition or on the
previous balance sheet date shall be included in the current profit and loss, except: ① the currency
translation difference of the dedicated foreign currency loan that meets the capitalization condition shall be
54
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
included in the cost of assets as capitalization during the capitalization period; ② the currency translation
difference of the arbitrage tool to avoid foreign exchange risk shall be treated according to the hedge
accounting method; ③ the currency translation difference of the available-for-sale monetary items
generated by the book value other than the amortized cost shall be recognized as other comprehensive
income and included in other comprehensive income.
The amount of the non-monetary items of the foreign currency transaction measured by historical cost
shall be still translated into the amount in the reporting currency at the spot exchange rate on the
transaction date. The non-monetary items of the foreign currency transaction measured by the fair value
shall be translated at the spot exchange rate on the fair value date, and the difference between the amount
in the reporting currency and the amount in original reporting currency shall be treated as the change of the
fair value (including exchange rate movement) and shall be included in the current profit and loss or
recognized as other comprehensive income.
5.8.2 Translation of foreign currency financial statement
In order to compile a consolidated financial statement, the foreign currency financial statement of overseas
business shall be translated into RMB financial statement in accordance with the following methods: all
asset and liability items in the balance sheet shall be translated at the spot exchange rate on the balance
sheet date; the shareholders' equity items, except for the ones as "undistributed profits", shall be translated
at the spot exchange rate at the time when they occur; all items and the items reflecting the accrual profit
distribution in the profit statement shall be translated at the exchange rate similar to the spot exchange rate
at the time when they occur; the undistributed profits at the beginning of the year shall be the translated to
the undistributed profits at the end of the previous year; the undistributed profits at the end of the year shall
be calculated and listed as the translated profit distribution items; and the difference between the asset
items and the sum of the liability items and the shareholders‘ equity items shall be recognized as other
comprehensive income and included in the shareholder's equity.
The foreign currency cash flows and the cash flows of the overseas subsidiary companies shall be
translated at the exchange rate similar to the spot exchange rate at the time when they occur; the amount of
the cash and cash equivalents impacted by the exchange rate movement shall be, as a reconciling item,
separately listed under ―impact of exchange rate movement on cash and cash equivalents‖ in the cash flow
statement.
The balance at the beginning of the year and the actual amount of the previous year shall be listed as the
amount translated according to the financial statement of the previous year.
5.9 Financial instruments
When becoming a party to a contract of financial instruments, the Group shall recognize a financial asset
or financial liability. The financial assets and financial liabilities shall be measured at their fair value at the
time of initial recognition. For other categories of financial assets and financial liabilities, relevant
transaction expenses thereof shall be included in the initially recognized amount.
5.9.1 Effective interest method
The effective interest method refers to the method by which the amortized cost and the interest income or
expenditure of different installments are calculated in light of the effective interest rates of the financial
assets or financial liabilities (including a group of financial assets or financial liabilities). The effective
interest rate refers to the interest rate adopted to cash the future cash flow of a financial asset or financial
liability within the predicted term of existence or within a shorter applicable term into the current book
value of the financial asset or financial liability.
When the effective interest rate is calculated, the Group predicts the future cash flow (taking no account of
the future credit loss) on the basis of considering all the contractual provisions concerning the financial
assets or financial liabilities, as well as all kinds of charges, transaction expenses, discounts, premiums, etc.
which are paid, charged, and included in the effective interest rate between the contracting parties of the
financial assets or liabilities.
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5.9.2 Classification, recognition and measurement of financial assets
Financial assets are classified into the following categories when they are initially recognized: the financial
assets which are measured at the fair value and the variation of which is included in the current profit and
loss, the investments which will be held to their maturity, loans, accounts receivable and available-for-sale
financial assets. The financial assets purchased and sold through common modes shall be recognized and
terminated from recognition according to the accounting on the transaction date. The financial assets held
by the Group are loans, accounts receivable and available-for-sale financial assets.
Loans and accounts receivable
Loans and accounts receivable refer to the non-derivative financial assets for which there is no quoted
price in an active market and of which the repo amount is fixed or determinable. The financial assets
classified by the Group into loans and accounts receivable include monetary capital, bills receivable,
accounts receivable, interest receivable, dividends receivable and other receivables.
The loans and accounts receivable shall be subsequently measured at amortized cost by adopting the
effective interest rate method. The profits or losses that occur when such loans and accounts receivable are
terminated from recognition, impaired or amortized shall be included in the current profit and loss.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available for
sale at the time of initial recognition and the financial assets other than those measured at their fair value
and the variation of which is included in the current profit and loss, loans, accounts receivable and the
investments which will be held to their maturity.
The equity instrument investment without quoted market price in an active market whose fair value cannot
be reliably measured shall be measured by cost.
5.9.3 Impairment of financial assets
On each balance sheet date, the Group checks the book value of the financial assets. If there is any
objective evidence indicating that a financial asset is impaired, the impairment provision is accrued.
Objective evidence indicating the impairment of financial assets refers to those occurring after the initial
recognition, have effect on the estimated future cash flow of the financial assets, and can be measured
reliably.
The objective evidence indicating the impairment of the financial assets includes the following observable
matters:
① A serious financial difficulty occurs to the issuer or the debtor;
② The debtor breaches any of the contractual stipulations, such as, failure to pay or delay of the
payment of interest or principal;
③ The Group makes any concession due to economic, legal factors or other factors to the debtor
which is in financial difficulties;
④ The debtor will probably become bankrupt or carry out other financial reorganizations;
⑤ The financial assets can no longer continue to be traded in an active market due to serious
financial difficulties of the issuer;
⑥ It is impossible to identify whether the cash flow of a certain asset within a certain group of
financial assets has decreased or not. But after making an overall appraisal according to the public
data available, it is found that the estimated future cash flow of the said group of financial assets
has indeed decreased since it was initially recognized and such decrease can be measured,
including:
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* The payment ability of the debtor of the said group of financial assets worsens gradually;
* The country or economic region where the debtor is situated has the conditions that may cause the
financial assets to be unpaid.
⑦ A serious unfavourable change occurs to the operating technology, market, economic environment,
legal environment of the issuer of the equity instruments that causes the investor of the equity
instruments can‘t recover the investment costs;
⑧ The fair value of the equity instrument investment has serious or permanent decline; and
⑨ Other objective evidence showing the depreciation of the financial assets.
* Impairment of financial assets measured by amortized cost
Where a financial asset measured at amortized cost is impaired, the book value of the said financial asset
shall be written down to the current value of the predicted future cash flow determined according to the
capitalization of original effective exchange rate (excluding the loss of future credits not yet occurred), and
the amount as written down shall be recognized as loss of the impairment of the asset and shall be included
into the current profit and loss. If there is any objective evidence proving that the value of the said financial
asset has been restored, and it is objectively related to the events that occur after such loss is recognized,
the impairment losses originally recognized shall be reversed. However, the reversed book value shall not
be any more than the amortized costs of the said financial asset on the day of reverse under the assumption
that no provision is made for the impairment.
An impairment test shall be made by the Group independently on the individually significant financial
assets; with regard to not individually significant financial assets, an independent impairment test may be
carried out, or they may be included in a combination of financial assets with similar credit risk
characteristics so as to carry out an impairment-related test. Where, upon independent test, the financial
asset (including the individually significant financial assets and not individually significant financial assets)
has not been impaired, it shall be included in a combination of financial assets with similar credit risk
characteristics so as to conduct another impairment test. Assets that are individually assessed for
impairment and for which an impairment loss is or continues to be recognized shall not be included in the
combination of the financial assets with similar credit risk characteristics for impairment test.
* Impairment of available-for-sale financial assets measured by cost
When the equity instrument investment without quoted market price in an active market and the fair value
of which cannot be reliably measured is impaired, the book value is decreased to the current value
confirmed by the discounted future cash flow according to the current market return of the similar financial
assets. The decreased amount is recognized as impairment loss and included in the current profit and loss.
The impairment loss of this kind of financial assets can‘t be transferred back upon confirmation.
5.9.4 Transfer of financial assets
Where a financial asset satisfies any of the following conditions, it shall be terminated from recognition: (1)
where the contractual rights for collecting the cash flow of the said financial asset are terminated; (2)
where the said financial asset has been transferred and all the risks and rewards of the financial asset have
been substantially transferred to the receiver; (3) where the financial asset has been transferred, although
the Group does not transfer or retain almost all the risks and rewards of the financial asset, the Group still
waives the control over the financial asset.
Where the overall transfer of the financial asset satisfies the derecognition conditions, the difference
between the book value of the transferred financial asset as well as the consideration received due to such
transfer and the summation of the cumulative amount of the fair value of the asset that is originally
included in other comprehensive income shall be included in the current profit and loss.
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5.9.5 Classification, recognition and measurement of financial liabilities
The Group classifies the financial instruments or the components as financial liabilities or equity
instruments at the time of initial recognition according to the contract terms of the issued financial
instruments and the reflected economic essence rather than only the legal form, considering the definition
of financial liabilities and equity instruments.
The financial liabilities are classified as the financial liabilities and other financial liabilities measured by
fair value and the variation of which is included in the current profit and loss at the time of initial
recognition. The financial liabilities of the Group are other financial liabilities, including short-term loans,
notes payable, accounts payable, interest payable, other payables and long-term loans.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost by adopting effective interest rate
method, wherein the profits or losses that arise when such financial liabilities are terminated from
recognition or amortized shall be included in the current profit and loss.
5.9.6 Terminated recognition of financial liabilities
When the prevailing obligations of a financial liability are relieved in all or in part, the recognition of the
financial liability shall be terminated in all or in part. Where the Group (debtor) enters into an agreement
with a creditor so as to substitute the existing financial liability by way of any new financial liability, and if
the contractual stipulations regarding the new financial liability is substantially different from that
regarding the existing financial liability, the recognition of the existing financial liability shall be
terminated, and at the same time the new financial liability shall be recognized.
Where the recognition of a financial liability is totally or partially terminated, the difference between the
book value of the part which has been terminated from recognition and the consideration which has been
paid (including the non-cash assets it has transferred out and the new financial liabilities it has assumed)
shall be included into the current profit and loss.
5.9.7 Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities and this
right can be implemented at present, and when the Group plans to use net settlement or liquidate the
financial assets and pay off the financial liabilities, the amount after the financial assets offset the financial
liabilities is listed in the balance sheet. Besides, the financial assets and the financial liabilities are
respectively listed in the balance sheet without offset.
5.9.8 Equity instruments
The equity instruments mean the contracts by which to hold the residual equity in the assets of the Group
after deducting all the liabilities. The issuing (including refinancing), counter purchase, sale or cancellation
of the equity instruments by the Group shall be handled as changes of the equity. The Group doesn‘t
recognize any change to the fair value of the equity instruments. The transaction expenses related to the
equity transaction shall be deducted from the equity.
The distribution related to the equity instrument holder by the Group shall be considered as profit
distribution, and the issued share dividends don‘t affect the total amount of the shareholders‘ equity.
5.10 Accounts receivable
5.10.1 Bad account provision of individually significant accounts receivable
The accounts receivable with the amount above RMB
Judgment reference or amount standard for individually
3,000,000 shall be recognized by the Group as the
significant accounts
individually significant accounts receivable.
Accruing method for individually significant accounts An impairment test shall be made independently by
accrued for bad account provision individually the Group on the individually significant financial
assets. Where, upon independent test, the financial
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asset has not been impaired, it shall be included in a
combination of financial assets with similar risk
characteristics so as to conduct another impairment
test. The accounts receivable that are independently
assessed for impairment and for which an impairment
loss is or continues to be recognized shall not be
included in the combination of accounts receivable
with similar credit risk characteristics for impairment
test.
5.10.2 Individually insignificant accounts receivable accrued for bad account provision
individually
If there is objective evidence that the Group can‘t call back the accounts
Reasons for accruing for bad account
according to original articles, the individually insignificant accounts
provision individually
receivable can be accrued for bad account provision individually.
The impairment losses are recognized according to the difference between
Methods for accruing bad account
the present value of future cash flow and the book value, and impairment
provision
provision is accrued.
5.11 Inventories
5.11.1 Classification of inventories
Inventories of the Group comprise raw materials, goods in process and commodity stocks. The inventories
are initially measured by cost. The inventory cost consists of purchase cost, processing cost and other
expenditures to make inventories reach the current site and state.
5.11.2 Pricing methods for sending out inventories
Weighted average method is used to determine the actual cost for sending out inventories when sending
them out.
The agricultural products after the harvest are handled in accordance with the ASBE 1- Inventories.
5.11.3 Recognition reference of the net realizable value of inventories
Inventories are stated at the lower of cost and net realizable value on the balance sheet date. If the net
realizable value is lower than the cost of inventories, the provision for the loss on decline in value of
inventories are made. The net realizable value refers to the amount: the estimated sale price of inventories
deducting the estimated cost to happen till completion, the estimated selling expense and relevant taxes, in
daily activities. Based on the acquired concrete evidence, the purpose for holding inventories and the
impact of matters after balance sheet date shall be also considered during recognition of the net realizable
value of inventories.
The inventories are accrued inventory depreciation provision according to the difference of single
inventory item and its net realizable value.
After accruing inventory depreciation provision, if the previous influence factors writing down inventories
value disappear resulting in the net realizable value of the inventories being higher than their book value, it
shall be reversed from the originally accrued inventory depreciation provision amount and the reversed
amount shall be included in the current profit and loss.
5.11.4 Inventory system for the inventories
Inventory system: Perpetual inventory system
5.11.5 Amortization method of low-priced and easily-worn articles and packages
Amortization method of packages and low-priced and easily-worn articles: One-off amortization method
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5.12 Long-term equity investments
5.12.1 Judgment standard of control, common control and significant impact
Control means that the investor holds the power in the investor, obtains variable returns by participating in
relevant activities of the invested party and has the ability to affect the amount of the returns by using the
power on the invested party. Common control means a joint control over a certain arrangement according
to relevant agreements and relevant activities of this arrangement must be decided upon unanimous
consent of the participants sharing the control power. Significant impact refers to the right to participate in
decision-making of the investor‘s financial and operating policies but not controlling or commonly
controlling the formulation of these policies with other parties. When determining whether to control or
exert significant influence on the invested unit, the potential voting power factors such as the current
convertible company bonds and the current executable equity warrants held by the investor and other
parties in the invested unit have been considered.
5.12.2 Recognition of initial investment cost
For long-term equity investments acquired from business combination under non-common control, the
combination cost is regarded as the initial investment cost of the long-term equity investments on the
acquisition date.
The intermediary expenses such as audit, legal services and assessment consultation and other related
management expenses paid by the acquirer for business combination are included in the current profit and
loss when they occur..
For long-term equity investments other than those formed by business combination, initial measurement
shall be carried out according to the cost.
5.12.3 Subsequent measurement and recognition of loss and profit
Long-term equity investments by cost method
Long-term equity investments in the subsidiary companies are measured on cost method basis in the
corporate financial statement. Subsidiary companies refer to the invested entities by which the Group has
control.
When cost method is adopted, the long-term equity investments are measured at the initial investment cost.
In case of additional or recovered investment, the cost of the long-term equity investments shall be
adjusted accordingly. The current investment income shall be recognized according to the cash dividends
or profits declared to issue by the invested unit.
5.12.4 Disposal of long-term equity investments
When the long-term equity investments are disposed, the difference between the book value and the
actually acquired price is included in the current profit and loss.
5.13 Fixed assets
5.13.1 Recognition conditions
Fixed assets refer to the tangible assets held for producing goods, rendering services, leasing or operation
management, with service life exceeding one accounting year. 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. Initial measurement for fixed assets shall be carried out according to the
cost. For the subsequent expenses related to the fixed asset, if the economic benefits relating to the fixed
asset are likely to flow into the Group and the cost thereby can be reliably measured, the subsequent
expenses are included in fixed asset cost and the book value of the substituted part shall be terminated.
Other subsequent expenses shall be included in the current profit and loss.
5.13.2 Depreciation methods
Depreciation is calculated by the straight-line depreciation within the service life from the month following
having been put into operation. The estimated service life, residual value and annual depreciation rate are
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as follows:
Classification Depreciation method Depreciation life Residual value rate Annual depreciation rate
Straight-line
Buildings 20-40 years 0-5% 2.4%-5.0%
depreciation
Straight-line
Machinery equipment 10-20 years 0-5% 4.8%-10.0%
depreciation
Straight-line
Motor vehicles 4-12 years 0-5% 7.9%-25.0%
depreciation
The estimated residual value refers to the amount that the Group obtains from disposal of the assets at
present after deducting the predicted disposition expenses at an estimated state on the assumption that the
predicted service life of the fixed assets has expired.
5.13.3 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 estimated recoverable amount of an
asset is based on 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. If the
recoverable amount of the asset or cash-generating unit is less than its book value, the impairment
provision of asset shall be accrued according to the difference and included in the current profit and loss.
After impairment loss of fixed assets has been recognized, it shall not be reversed in the future accounting
periods.
5.13.4 Others
When the fixed assets are under disposal state or cannot generate any economic benefits through use or
disposal as expected, the fixed assets are derecognized. The selling, transfer, scrapping or damage disposal
income shall be included in the current profit and loss after deducting the book value and relevant taxes.
The Group reviews the service life, expected net residual value, and the depreciation method of the fixed
assets at least at the end of each year, and in case of any change, the change will be disposed as accounting
estimate change.
5.14 Construction in progress
Construction in progress is measured by actual costs, and the actual costs include all costs of the
engineering during the period of construction, capitalized borrowing costs before the engineering reaches
the planned serviceable condition and other related costs. The construction in progress is not depreciated.
The construction in progress is transferred to fixed assets after reaching the planned serviceable condition.
5.15 Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset shall be capitalized after expenditure to acquire happens, borrowing costs happen, acquisition,
construction or production essential for making the assets ready for their intended use or sales.
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. If the acquisition, construction or production of
a qualifying asset is abnormally interrupted, and the interruption period exceeds three months, the
capitalization of borrowing costs shall be temporarily ceased, until the construction or production resumes.
Other borrowing costs are recognized as expenses when occur.
5.16 Biological assets
The biological assets of the Group are productive biological assets.
Productive biological assets refer to the biological assets held for the purposes of producing agricultural
products, rendering services or leasing, etc. The productive biological assets of the Group are vines that
produce grapes. Initial measurement for the productive biological assets is carried out according to the cost.
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For the occurred cost of the self-breeding productive biological asset before achieving the intended
production and operation purposes can be directly attributable to the necessary expenses of the asset,
including the borrowing cost conforming to capitalization.
The productive biological assets are not accrued depreciation until reaching the intended production and
operation purposes. After reaching the intended production and operation purposes, the productive
biological assets are accrued depreciation within the service life straight-line depreciation. The service life,
estimated net residual value rate and annual depreciation rate of different productive biological assets are
as follows:
Category of assets Service life Estimated residual value rate (%) Annual depreciation rate
Vines 20 years 5%
The service life of the productive biological assets of the Group and the estimated residual value are
confirmed by the normal service life cycle of the biological assets.
The Group reviews the service life, expected net residual value,and the depreciation method of the
productive biological assets at least at the end of each year. In case of any change, the change will be
disposed as accounting estimate change.
At the time of sale, loss, death, damage or destroy of a productive biological asset, the difference after
deducting the book value and relevant taxes from the disposal income are included in the current profit and
loss.
5.17 Intangible assets
5.17.1 Pricing method, service life and impairment test
Intangible assets include land use right and software, etc.
Initial measurement for intangible assets is carried out according to the cost. For the intangible assets with
finite lives, since they are available, the amount after the original value deducts expected net residual value
and the accrued accumulative amount of provision for impairment is amortized evenly based on straight
line method. The intangible assets with indefinite service life are not amortized. The amortization method,
service life and estimated residual value of all kinds of intangible assets are shown as follows:
Category of assets Service life Estimated net residual value rate Annual amortization rate
Land use right 40-50 years - 2-2.5%
Software 5-10 years - 10-20%
At the end of the term, the service life and amortization method of the intangible assets with finite service
life shall be reviewed and adjusted if necessary.
5.18 Impairment of long-term assets
On each balance sheet date, the Group and the Company check the long-term equity investments, fixed
assets, construction in progress, productive biological assets and intangible assets with finite service life to
determine whether there is a sign indicating any impairment. If there is such a sign, the recoverable amount
shall be estimated. For intangible assets with indefinite service life and those not reaching the serviceable
conditions, impairment test should be taken every year no matter there is a sign of depreciation or not.
The estimated recoverable amount of the asset is based on the single asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount is determined based on the asset group which
the asset is in. The recoverable amount is the higher one between the net amount after the disposition
expenses are deducted from the fair value of the asset or the asset group and the current value of the
estimated future cash flow.
If the recoverable amount of the asset is lower than its book value, the impairment provision of the asset is
accrued based on the difference and included in the current profit and loss.
Impairment test is carried out for goodwill at least at the end of each year. The impairment test of goodwill
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
be carried out in combination with the related asset group or asset combination. That is to say, the book
value of the goodwill is amortized to the asset group or asset combination benefiting from the synergistic
effect of the business combination according to the reasonable methods from the acquisition date. If the
recoverable amount of the asset group or asset combination which includes the amortized goodwill is
lower than the book value, the corresponding impairment loss is recognized. The amount of impairment
loss shall firstly offset the book value of the goodwill amortized to the asset group or asset combination
and then offset the book value of other assets in proportion according to the proportion in the book value of
other assets in the asset group or asset combination except for the goodwill.
After the impairment loss of assets has been recognized, it is not be reversed in the future accounting
periods.
5.19 Long-term unamortized expenses
Long-term unamortized expenses refer to prepaid expenses occurred that should be borne by current and
subsequent periods and should be amortized over more than one year. Long-term unamortized expenses
are amortized evenly over the expected beneficial periods.
Amortization period of different long-term unamortized expenses of the Group are as follows:
Amortization period
Land requisition fee 50 years
Land leasing fee 50 years
Afforestation fee 5 years
Decoration fee 3-5 years
Others 3 years
5.20 Employee remuneration
5.20.1 Accounting treatment method of short-term remuneration
During the accounting period that the employees provide services for the Group, the actual short-term
remuneration is recognized as liabilities and included in the current profit and loss or relevant asset costs.
The welfare expenses of the employees in the Group are included in the current profit and loss or relevant
asset costs when occur based on the actual amount. The non-monetary welfare expenses of the employees
are measured by the fair value.
During the accounting period that the employees provide services for the Group, the corresponding
employee remunerations and the corresponding liabilities are recognized and included in the current profit
and loss or relevant asset costs after the social insurance premiums including medical insurance premium,
industrial injury insurance premium and birth insurance premium as well as housing provident funds are
paid by the Group for the employees, and labor union dues and employee education funds are withdrawn
by the Group according to the regulated withdrawing base and proportion.
5.20.2 Accounting treatment method of welfare after resignation
The Group makes the contribution plan for the welfare after resignation.
During the accounting period that the employees provide services for the Group, the amount to be
deposited which is calculated in accordance with the contribution plan is recognized as liabilities and
included in the current profit and loss or relevant asset costs.
5.20.3 Accounting treatment method of welfare after dismission
If the Group provides dismission welfare to the employees, the employee remuneration liabilities caused
by the dismission welfare shall be recognized and included in the current profit and loss on the following
date which is earlier: The Group can‘t unilaterally withdraw the dismission welfare due to termination of
labor relation plan or redundancy suggestion; or the Group confirms the costs or expenses related to the
reorganization involving the payment of the dismission welfare.
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5.21 Revenue
5.21.1 Revenues from sale of goods
When the significant risks and rewards of ownership of goods have been transferred to the buyer, provided
that the Group maintains neither continuous management right involvement to the degree usually
associated with ownership, nor effective control over the goods sold, and cost of sales can be measured
reliably. When the relevant economic benefits are likely to flow into the enterprise and the relevant
incurred cost or cost to be incurred can be measured reliably, the realization of the revenue from sale of
goods can be recognized.
5.21.2 Rendering of services
When income amount of rendering of services can be measured reliably, the relevant economic benefits are
likely to flow into the Group, the stage of completion of the transaction can be measured reliably, and the
incurred cost or cost to be incurred in the transaction can be measured reliably, then the income realization
of rendering of services can be recognized. The Group confirmed the income of the rendered services
according to percentage-of-completion method on the balance sheet date. The percentage-of-completion of
the service transaction is determined according to the proportion of the rendered service accounting for the
total services that shall be rendered.
If the outcome of rendering of service transaction cannot be reliably estimated, the income of the rendered
services are determined according to the render cost amount that is incurred and is expected to be
compensated, and the incurred service cost shall be the period charge. If the incurred service cost is
expected to be unable to be compensated, the income will not be determined.
5.22 Government allowances
5.22.1 Judgment standard and accounting treatment method of government allowances related
to assets
Government allowances refer to monetary or non-monetary assets received by the Group from the
government. According to the nature of the granted object clearly stipulated in relevant government
documents, government allowances include those related to assets and those related to income.
Government allowances are recognized where there is a reasonable assurance that the allowances will be
received and all attaching conditions will be complied with. Monetary allowances are measured on the
basis of the amount received or the amount receivable.
Government allowances related to assets are recognized as deferred income and are distributed equally in
the current profit and loss within the useful lives of the relevant assets.
5.22.2 Judgment standard and accounting treatment method of government allowances related
to revenues
The government allowances related to revenues to be used as compensation for future expenses or losses
are recognized as deferred income and are included in the profit and loss statement for the period where the
relevant expenses are recognized; or those to be used as compensation for relevant expenses or losses
already occurred are recorded directly in the current profit and loss.
5.23 Deferred income tax assets/deferred income tax liabilities
The income tax expenses include the current income tax and deferred income tax.
5.23.1 Current income tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current term and the
previous terms are measured according to the predicted payable (refundable) income tax amount as
stipulated by tax law.
5.23.2 Deferred income tax assets and deferred income tax liabilities
The balance sheet liability method is used for recognizing deferred income tax assets and deferred income
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
tax liabilities for the difference between certain assets, book value of liability items and their tax base, and
the temporary differences arising from the book value of items (that are not recognized as assets and
liabilities but can be recognized the tax bases as stipulated by tax law) and tax bases.
Normally all temporary differences are recognized the relevant deferred income taxes. However, for the
deductible temporary differences, the Group recognized the relevant deferred income tax assets taking the
taxable income that is likely to be obtained for deducting deductible temporary differences as the limit. In
addition, the temporary differences relevant to initial recognition of goodwill and relevant to the initial
recognition of assets or liabilities arising from transaction not of business combination, and not influencing
accounting profit and taxable income (or deductible loss) are not recognized for the relevant deferred
income tax assets or liabilities.
For the deductible losses and tax credits that can be transferred during subsequent years, the corresponding
deferred income tax assets shall be recognized by taking the future taxable income that is likely to be used
to deduct deductible losses and tax credits as the limit.
The Group recognized the deferred income tax liabilities arising from the taxable temporary differences
relevant to the subsidiary companies, except for that the Group can control the time of the reverse of the
temporary differences which are unlikely to be reversed in the foreseeable future. For the deductible
temporary differences relevant to the subsidiary companies, the Group will recognize the deferred income
tax assets only when the temporary differences are likely to be reversed in the foreseeable future and the
taxable income for deducting deductible temporary differences is likely to be achieved in the future.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are measured
according to the applicable tax rate during the period of expecting to repossess the relevant assets or pay
off relevant liabilities as stipulated by tax law.
Except for the current income taxes and deferred income taxes (relevant to transaction and matter that are
directly included in other comprehensive income or stockholder's equity) that are included in other
comprehensive income or stockholder's equity and the deferred income taxes arising from business
combination that adjusts the book value of the goodwill, the expenses or revenues of other current income
taxes and deferred income taxes are included in the current profit and loss.
On the balance sheet date, the Group shall review the book value of deferred income tax assets and shall
write down the book value of deferred income tax assets if sufficient taxable income is unlikely to be
obtained in the future to deduct the benefits of deferred income tax assets. The amount written down shall
be reversed when it is likely to obtain sufficient taxable income.
5.23.3 Offset of income tax
When there is the legal right of netting or intention of netting or carrying out obtaining assets and paying
off liabilities at the same time, the current income tax asset and current income tax liability of the Group
are reported according to the net amount after offset.
When there is the legal right of netting the current income tax asset and current income tax liability and the
deferred income tax assets and deferred income tax liabilities are relevant to the income tax collected by
same tax collection and management department on the same taxpayer or different taxpayers, however, the
involved tax payers intend to net the current income tax assets and liabilities or obtain assets and pay off
liabilities at the same time during every period of reverse of each significant deferred income tax assets
and liabilities in the future, deferred income tax assets and deferred income tax liabilities of the Group are
reported according to the net amount after offset.
5.24 Lease
5.24.1 Accounting treatment method of operating lease
The Group records the operating lease business as a lessee.
Rental expenses under the operating lease are credited to related costs of the assets or the current profit and
loss on the straight line basis over the lease terms. The initial direct costs are credited to the current profit
and loss. Contingent rentals are included in the current profit and loss upon actual accrual.
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
5.25 Changes in main accounting policies and accounting estimates
5.25.1 Changes in main accounting policies
Nil
5.25.2 Changes in main accounting estimates
Nil
5.26 Others
Critical assumptions and uncertain factors adopted for important judgements and accounting estimates
during the application of the accounting policies
During the application of the accounting policies of this Financial Report IV, the Group needs to judge,
estimate and assume the book value of the report items that are unable to be accurately measured due to the
inherent uncertainties of business activities, in which the judgment, estimation and assumption are made
based on the previous historical experience of the management level of the Group and considering other
relevant factors. The actual results may have differences from the estimation of the Group.
The Group regularly reviews the above-mentioned judgment, estimation and assumption based on the
continuous operation, and the change of accounting estimate only affects the current period of change, of
which the influence number will be recognized at the current period of change; in case of influencing both
current period and future period of change, the influence number will be recognized at the current period
and future period of change.
Critical assumptions and uncertain factors adopted for accounting estimates
On the balance sheet date, the main critical assumptions and uncertainties in accounting estimates that are
likely to result in significant adjustments in assets and book value of liabilities in the future period include:
Deferred income tax assets
Within the limit of the likeliness that there is sufficient taxable income to deduct deductible losses, the
deferred income tax assets shall be recognized according to all deductible losses that have not been utilized,
which requires the management level to use a lot of judgments to estimate the occurred time and amount of
taxable income to be obtained in the future, and combine with tax planning strategy to decide the amount
of deferred income tax assets that shall be recognized.
Depreciation
The Group uses straight line method for provision for depreciation within the expected service life after
considering the residual value of the fixed assets. The Group regularly reviewed the expected service life
to decide the amount of depreciation expense that will be included in every report period. The expected
service life is recognized by the Group according to the previous experience on similar assets and in
combination with the expected technical changes. The depreciation expense shall be adjusted if there are
significant changes in the previous estimate.
Service life of intangible assets
The expected service life of intangible assets are estimated based on actual service life of the previous
intangible assets of similar natures and functions and according to historical experience and in
consideration of the duration of the contractual rights or other legal rights applicable to the intangible
assets.
In case that the service life of the intangible assets shortens or extends, the amortization period will be
adjusted in the future period for intangible assets with finite life; for intangible assets with indefinite life, if
there is evidence showing that their service life is finite, their service life will be estimated in the future
period and they will be disposed according to the disposal principles of intangible assets with finite life.
Impairment of long-term assets
The Group carries out impairment assessment on long-term assets to determine if the recoverable amount
66
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
of assets drops to the amount lower than their book value. If the situation shows that the book value of the
long-term assets may not be fully recovered, the relevant assets will be deemed as having been impaired
and the impairment loss shall be correspondingly recognized.
The recoverable amount is the higher in: the net amount of fair value of an asset (or asset group) minus
disposal expense, and the present value of the estimated future cash flow of the asset (or asset group). It is
difficult for the Group to accurately estimate the fair value of an asset because of difficulty in obtaining the
open market price of the asset (or asset group). It needs to make significant judgments on the output,
selling price, relevant operating cost of the asset (or asset group) and the discount rate used for calculating
present value when estimating the present value of future cash flow. The Group will use all easily available
materials in estimating the recoverable amount, including the forecast relevant to output, selling price and
relevant operating cost according to the reasonable and supportable assumption.
Bad account provision of accounts receivable
Bad account provision of accounts receivable shall be recognized by the management level according to
the objective evidences (e.g. the possibility of bankruptcy or severe financial difficulty of the debtor) that
can affect the recovery of the accounts receivable. The management level will reevaluate bad account
provision in the end of every year.
Inventory depreciation provision accrued based on net realizable value
According to the inventory accounting policy, the Group carries out price decrease provision for obsolete
and unsalable inventories with higher cost than the net realizable value measurement according to the
lower of the cost and net realizable value. The Group will reevaluate if the inventories are obsolete and
unsalable, and if the net realizable value is lower than inventory cost in the end of every year.
6. Taxes
6.1 Main taxes and tax rate
Taxes Tax basis Tax rate
VAT is levied by the output tax calculated by the taxable revenue
Value added tax as the tax base after deduction of eligible input VAT in this 17%
period.
The consumption tax is levied by the taxable revenue as the tax
Consumption tax 10%-20%
base.
Business tax The business tax is levied by the taxable revenue as the tax base. 5%
Urban maintenance and The urban maintenance and construction tax is levied by the
7%
construction tax actually paid turnover tax as the tax base.
The corporate income tax is levied by the taxable income as the
Corporate income tax 25%
tax base.
6.2 Tax incentives
Ningxia Changyu Grape Growing Co., Ltd. (―Ningxia Grwoing‖), a subsidiary of the Company, whose
principal activity is grape growing, is incorporated in Yongning County, Ningxia Hui Autonomous Region.
According to Article 27 of PRC Corporate Income Tax and Article 86 of PRC Corporate Income Tax
Measures for Implementation, it enjoys an exemption of corporate income tax related to grape growing.
Xinjiang Tianzhu Wine Co., Ltd., a subsidiary of the Company (―Xinjiang Tianzhu‖), 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 Corporate Income
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Tax Policies 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 corporate income tax
policies. From 2012 to 2016, it shall be exempted from local corporate income tax based on the preferential
policy of corporate income tax rate at 15%. The applicable tax rate in this year is 9%.
Xinjiang Changyu Baron Balboa Chateau Co., Ltd. (―Shihezi Chateau‖), a subsidiary of the Company, 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 Corporate Income Tax Policies 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 corporate income tax policies. From 2011 to 2015, it shall be exempted from local
corporate income tax based on the preferential policy of corporate income tax rate at 15%. The applicable tax
rate in this year is 9%.
7. Notes to consolidated financial statement
7.1 Monetary fund
Unit: Yuan
Item Ending balance Beginning balance
Cash on hand 484,571 101,660
Bank deposit 1,461,185,472 1,010,259,393
Other monetary funds 125,295,029 135,004,018
Total 1,586,965,072 1,145,365,071
Including: Total amount of funds
38,323,476 43,746,008
deposited abroad
As at June 30, 2015, the bank deposit with restricted ownership of the Group was RMB 2,643,519 Yuan,
which was the company‘s housing fund (December 31, 2014: RMB 2,643,519 Yuan).
As at June 30, 2015, other monetary funds of the Group included pledge deposit of RMB 125,000,000 Yuan
for long-term loans from HSBC of HKD 152,000,000 (converting into RMB 119,867,200 Yuan) by the
Joint-stock Company (December 31, 2014: RMB 125,000,000 Yuan), refundable deposit for bills payable of
Shihezi Chateau of RMB 0 Yuan (December 31, 2014: RMB 10,000,000 Yuan) and guaranty money for
deposits in the public card of the Joint-stock Company of RMB 295,029 Yuan (December 31, 2014: RMB
4,018 Yuan).
As at June 30, 2015, the Group had monetary fund of RMB 38,323,476 Yuan that was deposited abroad
(December 31, 2014: RMB 43,746,008 Yuan).
The bank deposit of the Group including time deposit ranging from 3 months to 1 year as at June 30, 2015
was RMB 28,000,000 Yuan (December 31, 2014: RMB 47,245,260 Yuan), with the interest rates ranging from
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
2.22%-3.3%.
7.2 Bills receivable
7.2.1 Classification of bills receivable
Unit: Yuan
Type Ending balance Beginning balance
Bank‘s acceptance bill 335,703,960 138,315,319
Trade acceptance
Total 335,703,960 138,315,319
7.2.2 Bills receivable pledged by the Company at the end of term
Nil
7.2.3 Bills receivable endorsed or discounted by the Company at the end of term but not yet
matured as of the balance sheet date
Unit: Yuan
Amount terminating recognition at the end Amount not terminating recognition at
Item
of term the end of term
Bank‘s acceptance bill 104,109,317
Trade acceptance
Total 104,109,317
7.2.4 Bills receivable reclassified as accounts receivable by the Company due to the default of
drawer at the end of term
Nil
7.3 Accounts receivable
7.3.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type
Amount Proportion Amount Accrued Book value Amount Proportion Amount Accrued Book value
proportion proportion
Accounts
receivable of
significant
single 65,290,161 49.9% 65,290,161 67,557,319 46.4% 67,557,319
amount and
single
accrued bad
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
debt
provision
Accounts
receivable
accrued bad
debt
provision by
credit risk
features
Accounts
receivable of
insignificant
single
amount and 65,514,484 50.1% 65,514,484 78,115,092 53.6% 78,115,092
single
accrued bad
debt
provision
Total 130,804,645 100% 130,804,645 145,672,411 100% 145,672,411
The credit term of accounts receivable is normally one month. Major customers can be granted a credit term
up to three months. The accounts receivable are free from interest.
7.3.2 Bad debt provision accrued, transferred back or received in this term
The bad debt provision accrued in this term is RMB 0 Yuan; and that transferred back or received in
this term is RMB 0 Yuan.
7.3.3 Accounts receivable actually cancelled after verification in this term
Nil
7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance
Relationship with the Percentage of total
Unit Amount Period
Company accounts receivable
Nonggongshang
Supermarket (Group) Third party 16,949,440 Within 1 year 13.0%
Co., Ltd.
Wal-mart (China)
Third party 16,327,506 Within 1 year 12.5%
Investment Co., Ltd.
Suguo Supermarket Co.,
Third party 10,113,306 Within 1 year 7.7%
Ltd.
Beijing Wu Mart
Third party 8,741,886 Within 1 year 6.7%
Business Group Co., Ltd.
Kangcheng Investment
Third party 6,795,264 Within 1 year 5.2%
(China) Co., Ltd.
Total -- 58,927,402 -- 45.1%
7.3.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.3.6 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Advanced payment
7.4.1 Advanced payment listed by age
Unit: Yuan
Ending balance Beginning sum
Age
Amount Proportion Amount Proportion
Within 1 year 1,862,640 8,073,786
1-2 years
2-3 years
More than 3 years
Total 1,862,640 -- 8,073,786 --
7.4.2 Advanced payment collected by the prepaid parties of top 5 units ranked by the ending
balance
Percentage
Relationship with the of total
Unit Amount Age Reason for unsettlement
Group advanced
payment%
25.7%
Within 1 Prepaid electricity purchasing
Yantai Power Supply Co., Ltd. Third party 479,497
year fund
3.9%
Langfang Beitian Landscape Engineering Within 1
Third party 72,254 Prepaid afforestation fee
Co., Ltd. year
3.6%
Within 1
Xi‘an No. 1 Print Factory Third party 66,681 Failure to receive the goods
year
3.5%
Within 1
Chongqing Hoson Glass Co., Ltd. Third party 66,000 Failure to receive the goods
year
2.7%
Ningxia Tengyida Industry & Trade Co., Within 1
Third party 50,050 Failure to receive the goods
Ltd. year
734,482 39.4%
Total -- -- --
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.5 Interest receivable
7.5.1 Interest receivable
Unit: Yuan
Item Ending balance Beginning balance
Time deposit 5,730,457 3,619,429
Entrusted loan
Bond investment
Total 5,730,457 3,619,429
7.6 Other accounts receivable
7.6.1 Other accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book Book
Amount Proportion Amount Accrued value Amount Proportion Amount Accrued value
proportion proportion
Other
accounts
receivable of
significant
single amount 40,921,858 76.2% 7,199,521 17.6% 33,722,337 16,540,213 42.9% 7,199,521 43.5% 9,340,692
and single
accrued bad
debt
provision
Other
accounts
receivable
accrued bad
debt
provision by
credit risk
features
Other
accounts
receivable of
insignificant
single amount 12,807,998 23.8% 12,807,998 22,021,610 57.1% 22,021,610
and single
accrued bad
debt
provision
Total 53,729,856 100% 7,199,521 13.4% 46,530,335 38,561,823 100% 7,199,521 18.7% 31,362,302
Other accounts 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. 2015 Semi-annual Report
Ending balance
Other accounts
receivable (by unit) Other accounts Accrued
Bad debt provision Reason for accrual
receivable proportion
Tiantong Securities Co., This company is in bankruptcy
7,199,521 7,199,521 100%
Ltd. liquidation.
Total 7,199,521 7,199,521 -- --
7.6.2 Bad debt provision accrued, transferred back or received in this term
The bad debt provision accrued in this term is RMB 0 Yuan; and that transferred back or received in
this term is RMB 0 Yuan.
7.6.3 Other accounts receivable actually cancelled after verification in this term
Nil
7.6.4 Other accounts listed by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Deposit and guaranty money receivable 28,030,128 8,651,139
Fund of disbursement receivable 5,546,178 3,138,780
Consumption tax and house duty
10,015,633 8,772,123
reimbursement
Other 10,137,917 17,999,781
Total 53,729,856 38,561,823
7.6.5 Other accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage of total ending
Ending balance of
Unit Nature Ending balance Age balance of other accounts
bad debt provision
receivable
YEDA Construction Enterprise
Guaranty Within 1
Endowment Insurance Management 12,325,300 22.9%
money year
Office
Hi-tech Industrial Development
Within 1
Zone Branch, Fushan District Tax rebate 8,530,927 15.9%
year
Office, SAT
Guaranty Within 1
YEDA Finance Bureau 7,866,110 14.6%
money year
More than 3
Tiantong Securities Co., Ltd Investment 7,199,521 13.4% 7,199,521
years
YEDA Construction Industry Guaranty
5,000,000 2-3years 9.3%
Association money
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.6.6 Other accounts receivable terminating recognition due to transfer of financial assets
Nil
7.6.7 Other accounts receivable transferred and included in assets and liabilities
Nil
7.7 Inventories
7.7.1 Inventory classification
Unit: Yuan
Ending balance Beginning balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 43,418,043 43,418,043 74,820,215 74,820,215
Goods in process 749,953,172 749,953,172 919,070,983 919,070,983
Commodity stocks 715,348,751 15,324,375 700,024,376 1,108,809,575 15,324,375 1,093,485,200
Total 1,508,719,966 15,324,375 1,493,395,591 2,102,700,773 15,324,375 2,087,376,398
7.7.2 Inventory depreciation provision
Unit: Yuan
Increase of this term Decrease of this term
Beginning
Item Transfer back or Ending balance
balance Accrual Other Other
write-off
Raw materials
Goods in process
Commodity stocks 15,324,375 15,324,375
Total 15,324,375 15,324,375
7.8 Available-for-sale financial assets
7.8.1 Available-for-sale financial assets
Unit: Yuan
Ending balance Beginning balance
Item Book Impairment Book Book Impairment Book
balance provision value balance provision value
Available-for-sale financial
instruments:
Available-for-sale equity 10,000,000 10,000,000 10,000,000 10,000,000
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
instruments:
Fair value measurement
Cost measurement 10,000,000 10,000,000 10,000,000 10,000,000
Total 10,000,000 10,000,000 10,000,000 10,000,000
7.8.2 Available-for-sale financial assets by cost measurement at the end of term
Unit: Yuan
Book balance Impairment provision Cash
Shareholding
Increase Decrease Increase Decrease dividend
Invested unit ratio in the
Beginning of this of this Ending Beginning of this of this Ending of this
invested unit
term term term term term
Yantai Dingtao
Construction
and 10,000,000 10,000,000 10,000,000 10,000,000 18%
Development
Co., Ltd.
Total 10,000,000 10,000,000 10,000,000 10,000,000 --
7.8.3 Changes of impairment of available-for-sale financial assets in the report period
Unit: Yuan
Classification of available-for-sale Available-for-sale equity Available-for-sale debt
Total
financial assets instruments instruments
Accrued impairment balance at the
10,000,000 10,000,000
beginning of term
Accrued amount of this term
Including: Transferred in from other
comprehensive income
Decrease of this term
Including: Fair value recovered and
transferred back after date
Accrued impairment balance at the end
10,000,000 10,000,000
of term
7.9 Fixed assets
7.9.1 Particulars of fixed assets
Unit: Yuan
Machineries and
Item Buildings Motor vehicles Total
equipment
Ⅰ Original book value:
1. Beginning balance 2,059,698,368 1,373,974,100 25,774,703 3,459,447,171
2. Increase 38,688,586 6,745,373 272,012 45,705,971
2.1 Acquisition 7,516,359 6,575,470 272,012 14,363,841
2.2 Transfer in from
31,172,227 169,903 31,342,130
construction in progress
2.3 Increase from
enterprise merger
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Machineries and
Item Buildings Motor vehicles Total
equipment
2.4 Others
3. Decrease 128,735 128,735
3.1 Disposal or retirement 128,735 128,735
3.2 Others
4. Ending balance 2,098,386,954 1,380,590,738 26,046,715 3,505,024,407
Ⅱ Accumulated depreciation
1. Beginning balance 269,635,846 636,170,373 20,958,597 926,764,816
2. Increase 28,844,515 45,477,232 1,054,358 75,376,105
2.1 Accrual 28,844,515 45,477,232 1,054,358 75,376,105
2.2 Others
3. Decrease 106,046 106,046
3.1 Disposal or retirement 106,046 106,046
3.2 Others
4. Ending balance 298,480,361 681,541,559 22,012,955 1,002,034,875
Ⅲ Impairment provision
1. Beginning balance
2. Increase
2.1 Accrual
2.2 Others
3. Decrease
3.1 Disposal or retirement
3.2 Others
4. Ending balance
Ⅳ Book value
1. Ending book value 1,799,906,593 699,049,179 4,033,760 2,502,989,532
2. Beginning book value 1,790,062,522 737,803,727 4,816,106 2,532,682,355
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 without property certificates
Unit: Yuan
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Reason for not receiving property
Item Book value
certificate
Xinjiang Shihezi Bureau Workshop and
253,830,397 Under transaction
Factory
Beijing Chateau European Town, Main
230,176,069 Under transaction
Building and Service Building
Ningxia Wine-making Combined
76,821,774 Under transaction
Workshop and Office Building
Office of Sales Company Provincial
43,636,695 Under transaction
Sub-office
Xinjiang Tianzhu Fermentation and
26,161,479 Under transaction
Storage Workshop
Ice Wine Chateau Office Building and
10,275,726 Under transaction
Packing Workshop
Fermentation Centre Office Building,
6,407,793 Under transaction
Laboratory Building and Workshop
Changyu (Jingyang) Vintage Workshop 4,824,089 Under transaction
Kylin Packaging Finished Goods
2,714,223 Under transaction
Warehouse and Workshop
7.10 Construction in progress
7.10.1 Construction in progress
Unit: Yuan
Ending balance Beginning balance
Item
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Construction and Reconstruction Project
297,988 297,988 182,767 182,767
of Joint-stock Company
Xinjiang Tianzhu Technological
317,759 317,759 317,758 317,758
Innovation Reconstruction Project
AFIP Tourism Square Reconstruction
28,000 28,000 28,000 28,000
Project
Ningxia Chateau Road Project 4,297,650 4,297,650 4,083,378 4,083,378
Icewine Chateau Engineering Project 730,776 730,776 69,840 69,840
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Sales Company Building Project 45,827,492 45,827,492 39,316,089 39,316,089
Langfang Castel Workshop
271,057 271,057
Reconstruction
Jingyang Fermentation Workshop
994,385 994,385 794,385 794,385
Reconstruction Project
Shihezi Chateau Construction Project 81,702,747 81,702,747 69,298,865 69,298,865
Xinjiang Sales Company Construction
10,729,350 10,729,350 6,513,350 6,513,350
Project
Ningxia Chateau Construction Project 145,794,295 145,794,295 127,432,353 127,432,353
Xianyang Chateau Construction Project 243,952,375 243,952,375 222,927,964 222,927,964
R&D and Manufacturing Center
1,485,232,709 1,485,232,709 1,127,641,913 1,127,641,913
Construction Project
Tinlot Chateau Construction Project 64,104,576 64,104,576 73,517,357 73,517,357
Huanren Brewing Workshop Construction
27,545,868 27,545,868 26,261,424 26,261,424
Project
Chang‘an Chateau Tourism Construction
36,853,039 36,853,039 1,810,000 1,810,000
Project
Roullet-Fransac Construction Project 927,780 927,780
Total 2,149,336,789 2,149,336,789 1,700,466,500 1,700,466,500
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.10.2 Changes of major construction in progress in this term
Unit: Yuan
Transferred Proportion of Accumulative Including:
Capitalization
Beginning Other Ending accumulative Construction capitalization capitalization
Item Budget Increase to fixed ratio of interest Capital source
balance decrease balance project input in progress amount of amount of interest
assets in this term
budget interest in this term
Xinjiang Tianzhu
Technological
Innovation 3,500,000 317,758 317,758 92.70% 92.7% Others
Reconstruction
Project
Yantai Chateau Mu
Ziguo Vineyard 30,000,000 68.50% 68.5% Others
Project
Sales Company
161,350,000 39,316,089 6,511,404 45,827,493 92.20% 92.2% Others
Building Project
Shihezi Chateau
Construction Project
780,000,000 75,812,215 27,525,911 10,556,029 350,000 92,432,097 85.90% 85.9% Others
(including Xinjiang
Sales)
Ningxia Chateau
Construction Project
414,150,000 131,515,731 22,175,485 2,311,797 1,287,474 150,091,945 96.10% 96.1% Others
(including Ningxia
Plantation)
Xianyang Chateau
Construction Project
620,740,000 224,737,964 56,067,450 280,805,414 98.20% 98.2% Others
(including Chang‘an
Tourism)
R&D and
Manufacturing
1,693,970,000 1,127,641,913 357,590,796 1,485,232,709 87.70% 87.7% Others
Center Construction
Project
Tinlot Chateau
192,400,000 73,517,357 9,061,618 18,474,401 64,104,574 91.10% 91.1% Others
Construction Project
Huanren Brewing
Workshop 31,000,000 26,261,424 1,284,444 27,545,868 88.80% 88.8% Others
Construction Project
Total 3,927,110,000 1,699,120,451 480,217,108 31,342,227 1,637,474 2,146,357,858 -- -- --
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
As at June 30, 2015, there is no indication for impairment in construction in process of the Group, so
no provision is made.
7.11 Productive biological assets
7.11.1 Productive biological assets adopting cost measurement mode
Unit: Yuan
Animal
Item Plantation Forestry Aquaculture Total
Husbandry
Ⅰ Original book value
1. Beginning balance 161,384,261 161,384,261
2. Increase 26,057,977 26,057,977
2.1 Outsourcing
2.2 Self cultivation 26,057,977 26,057,977
3. Decrease 1,945,881 1,945,881
3.1 Disposal 1,945,881 1,945,881
3.2 Others
4. Ending balance 185,496,357 185,496,357
Ⅱ Accumulated
depreciation
1. Beginning balance 9,661,020 9,661,020
2. Increase 847,853 847,853
2.1 Accrual 847,853 847,853
3. Decrease
3.1 Disposal
3.2 Others
4. Ending balance 10,508,873 10,508,873
Ⅲ Impairment provision
1. Beginning balance
2. Increase
2.1 Accrual
3. Decrease
3.1 Disposal
3.2 Others
4. Ending balance
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Ⅳ Book value
1. Ending book value 174,987,484 174,987,484
2. Beginning book
151,723,241 151,723,241
value
As at June 30, 2015, no ownership of the biological asset is restricted.
As at June 30, 2015, the productive biological assets of this Group include mature productive biological
assets of RMB 24,322,692 Yuan (December 31, 2014: RMB 23,758,058 Yuan) and immature
productive biological assets of RMB 150,664,792 Yuan (December 31, 2014: RMB 127,965,183 Yuan).
As at June 30, 2015, there is no indication that biological assets may be impaired, and no provision is
made.
7.12 Intangible assets
7.12.1 Particulars of intangible assets
Unit: Yuan
Non-patented
Item Land use right Patent right Total
technology
Ⅰ Original book value
1. Beginning balance 459,367,374 37,017,024 496,384,398
2. Increase 5,700,281 211,000 5,911,281
2.1 Acquisition 5,700,281 211,000 5,911,281
2.2 Internal R&D
2.3 Increase from
enterprise merger
3. Decrease
3.1 Disposal
4. Ending balance 465,067,655 37,228,024 502,295,679
Ⅱ Accumulated amortization
1. Beginning balance 36,283,156 7,150,048 43,433,204
2. Increase 4,429,074 1,276,172 5,705,246
2.1 Accrual 4,429,074 1,276,172 5,705,246
3. Decrease
3.1 Disposal
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
4. Ending balance 40,712,230 8,426,220 49,138,450
ⅢImpairment provision
1. Beginning balance
2. Increase
2.1 Accrual
3. Decrease
3.1 Disposal
4. Ending balance
Ⅳ Book value
3. Ending book value 424,355,425 28,801,804 453,157,229
4. Beginning book value 423,084,218 29,866,976 452,951,194
7.12.2 Land use right without property certificates
Unit: Yuan
Reason for not receiving property
Item Book value
certificate
A-48, 49, 51 and 52 residential areas in YEDA 150,357,759 Under transaction
7.13 Goodwill
7.13.1 Original Book Value of Goodwill
Unit: Yuan
Name of the invested Increase Decrease
Beginning
unit or matter forming Formed from Ending balance
balance Other Disposal Other
goodwill enterprise merger
Etablissements Roullet 13,112,525 13,112,525
Fransac
Total 13,112,525 13,112,525
7.14 Long term unamortized expenses
Unit: Yuan
Item Beginning balance Increase Amortization Other decrease Ending balance
Land lease fees 60,810,188 620,540 859,174 60,571,554
Land-use fees 47,506,370 640,109 46,866,261
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Afforestation fees 40,596,058 2,255,880 5,870,009 36,981,929
Renovation costs 36,733,685 10,591,892 1,798,011 45,527,566
Other 16,265,304 8,968,190 1,470,203 23,763,291
Total 201,911,605 22,436,502 10,637,506 213,710,601
7.15 Deferred income tax assets/liabilities
7.15.1 Unoff-set deferred income tax assets
Unit: Yuan
Ending Balance Beginning Balance
Deductible Deductible
Item Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Asset impairment provision 32,523,896 8,130,974 32,523,896 8,130,974
Unrealized profits from inter-company
516,757,920 129,189,480 632,127,732 158,031,933
transactions
Deductible loss 193,223,452 52,162,017 160,950,941 44,093,889
Unpaid bonus 52,327,095 13,081,774 95,326,160 23,831,540
Dismission welfare 14,329,320 3,616,267 15,936,065 3,984,016
Deferred income 86,413,951 15,908,191 88,423,710 16,114,471
Total 895,575,634 222,088,703 1,025,288,504 254,186,823
7.15.2 Unoff-set deferred income tax liabilities
Unit: Yuan
Ending Balance Beginning Balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
difference tax liabilities difference tax liabilities
Assets appraisal appreciation in business
18,049,961 4,512,491 18,262,543 4,565,636
combination under non-common control
Change of fair value of financial assets for sale
Total 18,049,961 4,512,491 18,262,543 4,565,636
7.15.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Ending balance Beginning balance
Deductible loss 1,363,422 1,363,422
Total 1,363,422 1,363,422
7.15.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year Ending sum Beginning sum Remark
2015 1,363,422 1,363,422
Total 1,363,422 1,363,422 --
7.16 Other non-current assets
Unit: Yuan
Item Ending balance Beginning balance
Ningxia planting biological assets transfer
15,751,605 15,751,605
expenses receivable
Total 15,751,605 15,751,605
7.17 Short-term loan
7.17.1 Classification of short-term loan
Unit: Yuan
Item Ending balance Beginning balance
Pledge loan
Collateralised loan
Guaranteed loan
Fiduciary loan 300,000,000 300,000,000
Total 300,000,000 300,000,000
7.18 Bills payable
Unit: Yuan
Type Ending balance Beginning balance
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Commercial acceptance bill 10,000,000
Banker‘s acceptance bill
Total 10,000,000
7.19 Accounts payable
7.19.1 List of accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Within one year 126,564,586 357,811,822
Total 126,564,586 357,811,822
7.19.2 Significant amounts payable aged more than one year
As at June 30, 2015, the Group has no significant amounts payable aged more than one year.
7.20 Advances from customers
7.20.1 List of advances from customers
Unit: Yuan
Item Ending sum Beginning sum
Advances from customers for selling goods 248,266,622 215,127,598
Total 248,266,622 215,127,598
7.20.2 Advances from customers of significant amount aged more than one year
As at June 30, 2015, the Group has no advances from customers of significant amount aged more
than one year.
7.21 Employee benefits payable
7.21.1 List of employee benefits payable
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Short-term compensation 142,954,964 149,454,532 186,675,984 105,733,512
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Beginning balance Increase Decrease Ending balance
2. Post-employment welfare – defined
57,563 16,591,791 15,956,772 692,582
contribution plan
3. Dismission welfare 15,936,065 818,302 2,425,047 14,329,320
4.Other welfare due within one year
Total 158,948,592 166,864,625 205,057,803 120,755,414
7.21.2 List of short-term compensation
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Salaries, bonuses, allowances and
139,917,954 129,232,170 166,962,817 102,187,307
subsidies
2. Staff welfare 5,968 5,995,621 5,991,907 9,682
3. Social insurance charges 161,489 8,149,300 7,840,847 469,942
Including: Medical insurance 158,487 6,552,012 6,310,420 400,079
Injury insurance 1,572 891,854 856,608 36,818
Maternity insurance 1,430 705,434 673,819 33,045
4. Housing fund 70,236 4,602,265 4,433,923 238,578
5. Union fee and education fee 2,799,317 1,475,176 1,446,490 2,828,003
6. Short-term compensated absences - - - -
7. Short-term profit-sharing plan - - - -
8. Others - - - -
Total 142,954,964 149,454,532 186,675,984 105,733,512
7.21.3 List of defined contribution plan
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment insurance 55,963 15,669,148 15,097,837 627,274
2. Unemployment insurance 1,600 922,643 858,935 65,308
3. Enterprise annuity payment
Total 57,563 16,591,791 15,956,772 692,582
7.21.4 Dismission welfare
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Compensation for server of labor
818,302 818,302
relation
2. Compensation for early retirement 15,936,065 1,606,745 14,329,320
Total 15,936,065 818,302 2,425,047 14,329,320
7.223 Taxes payable
Unit: Yuan
Item Ending balance Beginning balance
Value added tax -64,622,839 -62,755,555
Consumption tax 9,241,487 18,849,955
Business tax 314,361 1,005,135
Corporate income tax 6,435,826 109,836,980
Individual income tax 7,215,706 6,644,281
Urban maintenance and construction tax 2,152,865 4,831,936
Urban land use tax 1,412,948 1,519,318
Property tax 1,694,102 898,914
Other 2,258,342 6,673,084
Total -33,897,202 87,504,048
7.23 Interest payable
Unit: Yuan
Item Ending balance Beginning balance
Long-term loan interest of installment and interest
463,347 1,723,974
charges, repayment of principal at maturity
Enterprise bond interest
Interest payable of short-term loan 5,428,152 1,751,667
Preferred stock/perpetual capital securities interest
divided into financial liabilities
Other
Total 5,891,499 3,475,641
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.24 Other payables
7.25.1 Other payables listed according to the nature
Unit: Yuan
Item Ending balance Beginning balance
Distributors deposit payable 137,190,180 134,470,408
Equipment purchases and construction costs
77,090,175 90,857,839
payable
Transportation charges payable 11,716,093 24,388,114
Payable for trademark usage of the Group 52,568,600 77,809,993
Advertising expenses payable 206,529,371 43,488,770
Other loans 22,522,636 22,522,636
Employee cash deposit 2,905,469 10,005,000
Payables for deposit of suppliers 10,593,744 2,263,984
Contract fee payable 34,155,771 27,132,371
Other 28,458,665 36,865,202
Total 583,730,704 469,804,317
7.25 Other current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Deferred income 12,398,717 12,398,718
Total 12,398,717 12,398,718
7.26 Long-term loans
7.26.1 Classification of long-term loans
Unit: Yuan
Item Ending balance Beginning balance
Pledge loan 119,867,200 119,912,800
Collateralised loan
Guaranteed loan
Fiduciary loan 68,699,000 89,467,200
Total 188,566,200 209,380,000
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.27 Deferred income
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance Forming reason
Government
76,024,992 4,312,000 6,321,758 74,015,234
allowance
Total 76,024,992 4,312,000 6,321,758 74,015,234 --
Projects related to government allowance
Unit: Yuan
Amount of Amount counted
subsidy into
Beginning Other Ending Relating to
Item of liabilities newly non-operating
balance changes balance assets/earnings
increased of revenue of this
this term term
Miyun County Committee
3,555,780 444,473 3,111,307 Relating to assets
Propaganda Department Transfer
Grape bulk wine brewing project 9,044,116 717,437 8,326,679 Relating to assets
Ningxia industrial revitalization
and technical transformation 11,065,000 1,647,500 9,417,500 Relating to assets
project
Special fund for Wuyouyixin
120,000 30,000 90,000 Relating to assets
industrial cluster
Subsidy payments for wine grape 470,000 470,000 Relating to earnings
Modern agriculture produced
324,000 324,000 Relating to earnings
grape development subsidy
Xinjiang industrial revitalization
and technical transformation 21,330,000 21,330,000 Relating to assets
project
Changyu Chateau project 12,758,700 1,611,150 11,147,550 Relating to assets
Special fund for infrastructure
3,357,900 239,850 3,118,050 Relating to assets
construction
Special fund for wine electronic
5,193,474 333,527 4,859,947 Relating to assets
traceability system
Special fund for wine industry
930,000 930,000 Relating to assets
development
Special fund for construction of
10,000,000 500,000 9,500,000 Relating to assets
Peninsula Blue Economic Zone
89
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Amount of Amount counted
subsidy into
Beginning Other Ending Relating to
Item of liabilities newly non-operating
balance changes balance assets/earnings
increased of revenue of this
this term term
Scientific research funds subsidy
62,900 3,200 59,700 Relating to assets
of National 863 Plan
Financial subsidy for SAP IT
5,220,000 290,000 4,930,000 Relating to assets
Project
Subsidy for project integrating IT
100,000 100,000 Relating to earnings
application with industrialization
Cross-border e-commerce project 2,179,440 122,222 2,057,218 Relating to earnings
Daliuhang grape base construction
2,080,000 260,000 1,820,000 Relating to assets
project
Industry transformation and
4,000,000 4,000,000 Relating to earnings
upgrading project
Special fund for major
312,000 312,000 Relating to assets
technological innovation project
Subsidy for agricultural science 632,400 122,400 510,000 Relating to earnings
Total 88,423,710 4,312,000 6,321,759 86,413,951
Minus: divided into current
12,398,718 12,398,717
liabilities
Non-current liabilities 76,024,992 74,015,234 --
7.28 Other non-current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Employee compensation payable 3,998,352 3,998,352
Total 3,998,352 3,998,352
As at June 30, 2015, the employee compensation payable is the guarantee fund for working
responsibility deducted per a certain ratio from the year-end bonuses of employees with the level
above sales manager of the Company, which will pay from 2016 to 2017.
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.29 Share capital
Unit: Yuan
Increase or decrease (+,-)
Share
Beginning transferred
Issue new Ending balance
balance Allocate shares from Other Subtotal
shares
accumulation
fund
Total shares 685,464,000 685,464,000
7.30 Capital surplus
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
Capital premium (Share capital
557,222,454 557,222,454
premium)
Other capital surplus 5,916,588 5,916,588
Total 563,139,042 563,139,042
7.31 Other comprehensive earnings
Unit: Yuan
Amount incurred in this term
Minus: profit or
Amount loss in this term
Minus: Attributable Attributable
Beginning incurred transferred from Ending
Item income to parent to minority
balance before other balance
tax company shareholders
income tax in comprehensive
expense after tax after tax
this term earnings before
1. Other comprehensive earnings not
to be reclassified into profit and loss
later
Including: change in net liabilities
and net assets from recalculated
defined benefit plan
Share enjoyed in other
91
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Amount incurred in this term
Minus: profit or
Amount loss in this term
Minus: Attributable Attributable
Beginning incurred transferred from Ending
Item income to parent to minority
balance before other balance
tax company shareholders
income tax in comprehensive
expense after tax after tax
this term earnings before
comprehensive earnings not to be
reclassified into profit and loss in
invested unit under equity law
2. Other comprehensive earnings to
be reclassified into profit and loss -2,803,271 -4,144,991 -4,144,991 -6,948,262
later
Including: share enjoyed in other
comprehensive earnings to be
reclassified into profit and loss in
invested unit under equity law
Profit and loss from changes
in fair value of financial assets for
sale
Profit and loss from
reclassification of held-to-maturity
investment into fair value of
financial assets for sale
Effective part of profit and
loss of cash-flow hedge
Difference in translation of
Foreign Currency Financial -2,803,271 -4,144,991 -4,144,991 -6,948,262
Statement
Total other comprehensive earnings -2,803,271 -4,144,991 -4,144,991 -6,948,262
7.32 Surplus reserve
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
Legal surplus 342,732,000 342,732,000
Free surplus
92
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Reserve fund
Enterprise expansion fund
Other
Total 342,732,000 342,732,000
7.32 Retained profits
Unit: Yuan
Item This term Last term
Retained profits at the end of last term before adjustment 5,251,920,374
4,616,944,663
Total retained profits at the beginning of the term before adjustment (increase listed
with+ , and decrease listed with -) -
Retained profits at the beginning of the term after adjustment 5,251,920,374
4,616,944,663
Plus: Net profit for owner of the parent company 746,060,248
977,707,711
Minus: Drawn legal surplus
-
Drawn free surplus
-
Drawn common risk provision
-
Common dividend payable
342,732,000
Common dividend transferred to share capital
-
Retained profits at the end of term 5,997,980,622
5,251,920,374
93
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.34 Operating income and cost
Unit: Yuan
Amount incurred in this term Amount incurred in last term
Item
Income Cost Income Cost
Major operating 2,822,557,981 929,890,756 2,295,163,767 748,344,147
Other operating 3,235,269 2,631,987 6,826,481 5,958,239
Total 2,825,793,250 932,522,743 2,301,990,248 754,302,386
7.35 Business taxes and surcharges
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Consumption tax 84,797,329 79,962,492
Business Tax 1,518,690 986,148
Urban maintenance and construction tax 28,968,941 27,466,029
Education fee and surcharges 15,286,114 14,516,416
Other 10,040,014 9,505,728
Total 140,611,088 132,436,813
7.36 Selling expenses
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Advertising expenses 360,539,291 262,899,061
Transportation & handling expenses 65,691,087 54,854,637
Trademark usage expenses 50,302,290 43,413,264
Storage and lease expenses 36,943,556 16,033,875
Employee compensation 92,074,479 77,095,386
Travel expenses 11,066,307 9,635,193
Other 36,808,506 22,549,614
Total 653,425,516 486,481,030
94
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.37 Administrative expenses
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Employee compensation 42,052,514 34,965,528
Rental expenses 4,284,471 4,202,779
Depreciation expenses 18,919,997 13,603,951
Amortization expenses 5,652,361 5,312,584
Office expenses 7,217,464 6,430,712
Travel expenses 2,280,457 2,259,499
Business entertainment expenses 3,221,229 1,837,458
Building tax, stamp duty & other taxes 10,197,817 5,769,819
Repair expenses 5,202,754 4,364,445
Contracting expenses 9,231,363 9,231,363
Other 11,509,913 16,002,359
Total 119,770,340 103,980,497
7.38 Financial expenses
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Interest expenditure 11,180,635 3,161,233
Minus: Interest income 10,172,582 17,753,946
Plus: Commission charges 655,685 224,138
Exchange loss -5,544,641 114,190
Total -3,880,903 -14,254,385
7.39 Non-operation income
Unit: Yuan
Amount incurred in Amount incurred in Amount counted into the current
Item
this term last term non-recurring profits/losses
Total gains on disposal of non-current assets 2,985 2,985
Including: Gains on disposal of fixed assets 2,985 2,985
95
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Gains on disposal of intangible
assets
Gains on debt recombination
Gains on exchange of non-monetary assets
Grains on donations
Government allowance 6,527,952 8,772,080 6,527,952
Other 2,265,897 672,716 2,265,897
Total 8,796,834 9,444,796 8,796,834
Government allowance counted into the current profits/losses:
Unit: Yuan
Amount incurred in this Amount incurred in last Belonging to non-current
Item of allowance
term term profits/losses or not
Funds to support major projects 3,942,973 4,052,500
Funds to support small and medium-sized
1,508,949 2,078,674
Enterprises
Other 1,076,030 2,640,906
Total 6,527,952 8,772,080 --
7.40 Non-operation expenses
Unit: Yuan
Item Amount incurred in this Amount incurred in last Amount counted into the current non-recurring
term term profits/losses
Total loss on disposal of 1,564 10,897 1,564
non-current assets
Including: Loss on disposal of
1,564 10,897 1,564
fixed assets
Loss on disposal of intangible
assets
Loss on debt recombination
Loss on exchange of non-monetary
assets
Donation 303,000 15,000 303,000
Fine, penalty and overdue fine paid
36,021 36,021
due to violation of laws and
administrative regulations
Other 13,366 179,619 13,366
Total 353,951 205,516 353,951
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.41 Income tax expense
7.41.1 List of income tax expense
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Current income tax expense 213,682,126 222,628,228
Deferred income tax expense 32,044,975 -12,386,352
Total 245,727,101 210,241,876
7.41.2 Adjustment process of accounting profit and income tax expense
Unit: Yuan
Item Amount incurred in this term
Total profit 991,787,349
Income tax expense calculated according to the legal/applicable tax rate 247,946,837
Influence of different tax rates applicable to subsidiary -2,678,577
Influence of income tax in the term before adjustment
Influence of nontaxable income
Influence of non-deductible costs, expenses and losses 458,841
Influence of deductible loss from use of unconfirmed deferred income tax assets in last term
Influence of deductible temporary difference or deductible loss of unconfirmed deferred income tax
assets in this term
Income tax expense 245,727,101
7.42 Other comprehensive earnings
See details in Note 31.
7.43 Items of cash flow statement
7.43.1 Other cash received relating to operating activities
97
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Government allowance income 4,518,193 1,815,120
Other 3,694,770 6,533,816
Total 8,212,963 8,348,936
7.43.2 Other cash paid relating to operating activities
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Selling expenses 349,236,795 293,202,949
Administrative expenses 35,679,002 35,097,252
Other 5,414,680 5,155,556
Total 390,330,477 333,455,757
7.44 Supplementary information to cash flow statement
7.44.1 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 746,060,248 638,041,311
Plus: Provision for impairment of assets
Depreciation of fixed assets, oil-and-gas assets and
76,223,958 66,175,340
productive biological assets
Intangible assets amortization 5,705,246 4,914,237
Amortization of long term prepaid expenses 10,637,506 7,313,656
Losses on disposal of fixed assets, intangible assets and
-1,421 10,897
other long-term assets (profit listed with ―－‖)
Losses on retirement of fixed assets (profit listed with ―－‖)
Losses on fair value change (profit listed with ―－‖)
Financial costs (profit listed with ―－‖) 2,219,651 -2,504,848
Investment losses (profit listed with ―－‖)
Decrease in deferred income tax assets (increase listed with
32,098,120 -12,386,352
―-‖)
Increase of deferred income tax liabilities (decrease listed -53,145
98
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Supplementary materials Amount incurred in this term Amount incurred in last term
with ―－‖)
Decrease in inventories (increase listed with ―-‖) 593,980,807 357,764,305
Decrease in operating receivables (increase listed with ―-‖) -290,154,233 -101,390,868
Increase in operating payable (decrease listed with ―-‖) -249,553,677 -68,262,547
Other
Net cash flows from operating activities 927,163,060 889,675,131
2. Significant investment and financing activities not
-- --
involving cash deposit and withdrawal:
Debt transferred into assets
Convertible corporate bond due within 1 year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent: -- --
Ending balance of cash 1,431,026,523 1,605,221,643
Minus: Beginning balance of cash 960,472,274 956,558,932
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent 470,554,249 648,662,711
7.44.2 Cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
1. Cash 1,431,026,523 960,472,274
Including: Cash on hand 484,571 101,660
Bank deposits on demand 1,430,541,952 960,370,614
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 due within three months
3. Balance of cash and cash equivalents at the end of term 1,431,026,523 960,472,274
Including: restricted use of parent company or subsidiaries
in the group
99
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
7.45 Assets with restricted ownership or use right
Unit: Yuan
Item Ending book value Reason for restirction
Loan cash deposit, housing fund and unit card deposit
Monetary capital 127,938,548
cash deposit
Total 127,938,548 --
7.46 Foreign currency monetary items
7.46.1 Foreign currency monetary items
Unit: Yuan
Item Ending foreign currency balance Translation exchange rate Ending converted RMB balance
Long-term loans -- --
Including: USD
EUR 10,000,000 6.8699 68,699,000
HKD 152,000,000 0.7886 119,867,200
8. Changes in scope of consolidation
Changes in scope of consolidation due to other reasons (newly-established)
Full name of Date and place Legal Business nature Registered Business scope Organization
invested unit of incorporation representative capital code
Lanzhou Mar. 26, 2015 Zhang Pengfei Private limited 500,000 Wholesale and
Changyu Lanzhou City, liability retail of
Pioneer Wine Gansu Province, company prepackaged
32541076-1
Co., Ltd. China food and
general
merchandise
Yantai Jan. 22, 2015 Zhou Hongjiang Limited liability 1,000,000 Wholesale and
Roullet-Fransac Yantai City, company retail of
32846634-9
Imported Wine Shandong prepackaged
Sales Co., Ltd. Province, China food
100
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
9. Equity in other entities
9.1 Equity in the subsidiaries
9.1.1 Constitution of enterprise group
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Shihezi City, the Xinjiang Acquired from a business
Shihezi City, the Xinjiang Uygur Manufacturing
Xinjiang Tianzhu (a) Uygur Autonomous Region, 60% combination under
Autonomous Region, China industry
China non-common control
Acquired from a business
Etablissements Roullet
Cognac, France Cognac, France Trading 100% combination under
Fransac
non-common control
Beijing Changyu Sales and
Acquired by establishment
Distribution Co., Ltd. Beijing City, China Beijing City, China Sales 100%
or investment
(―Beijing Sales‖)
Yantai Kylin Packaging Co., Yantai City, Shandong Yantai City, Shandong Province, Manufacturing Acquired by establishment
100%
Ltd. (―Kylin Packaging‖) Province, China China industry or investment
Yantai Changyu-Castel Wine
Yantai City, Shandong Yantai City, Shandong Province, Manufacturing Acquired by establishment
Chateau Co., Ltd. (―Changyu 70%
Province, China China industry or investment
Chateau‖) (b)
Changyu (Jingyang) Pioneer
Xianyang City, Shaanxi Xianyang City, Shaanxi Manufacturing Acquired by establishment
Wine Co., Ltd. (―Jingyang 90% 10%
Province, China Province, China industry or investment
Wine‖)
Yantai Changyu Pioneer
Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Wine Sales Co., Ltd. (―Sales Sales 100%
Province, China China or investment
Company‖)
Langfang Development Zone
Langfang City, Hebei Langfang City, Hebei Province, Manufacturing Acquired by establishment
Castel-Changyu Wine Co., 39% 10%
Province, China China industry or investment
Ltd. (―Langfang Castel‖) (c)
Changyu (Jingyang) Pioneer
Xianyang City, Shaanxi Xianyang City, Shaanxi Acquired by establishment
Wine Sales Co., Ltd. Sales 10% 90%
Province, China Province, China or investment
(―Jingyang Sales‖)
Langfang Changyu Pioneer
Langfang City, Hebei Langfang City, Hebei Province, Acquired by establishment
Wine Sales Co., Ltd. Sales 10% 90%
Province, China China or investment
(―Langfang Sales‖)
Shanghai Changyu Sales and Acquired by establishment
Shanghai City, China Shanghai City, China Sales 30% 70%
Distribution Co., Ltd. or investment
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
(―Shanghai Sales‖)
Beijing Changyu AFIP
Eco-agriculture Development Miyun County, Beijing City, Miyun County, Beijing City, Acquired by establishment
Sales 100%
Co., Ltd. (―Agricultural China China or investment
Development‖)
Beijing Changyu AFIP Wine
Manufacturing Acquired by establishment
Chateau Co., Ltd. (―Beijing Beijing City, China Beijing City, China 70%
industry or investment
Chateau‖) (d)
Yantai Changyu Wine Sales Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Sales 90% 10%
Co., Ltd. ( ―Wine Sales‖) Province, China China or investment
Yantai Changyu Pioneer
Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
International Co., Ltd. Sales 70% 30%
Province, China China or investment
(―Pioneer International‖)
Hangzhou Changyu Wine
Hangzhou City, Zhejiang Hangzhou City, Zhejiang Acquired by establishment
Sales Co., Ltd. (―Hangzhou Sales 100%
Province, China Province, China or investment
Changyu‖)
Yinchuan City, the Ningxia
Yinchuan City, the Ningxia Hui Planting Acquired by establishment
Ningxia Growing Hui Autonomous Region, 100%
Autonomous Region, China industry or investment
China
Huanren Changyu National
Benxi City, Liaoning City, Acquired by establishment
Wine Sales Co., Ltd. Benxi City, Liaoning City, China Sales 100%
China or investment
(―National Wines‖)
Liaoning Changyu Ice Wine
Benxi City, Liaoning City, Manufacturing Acquired by establishment
Chateau Co., Ltd. (―Ice Benxi City, Liaoning City, China 51%
China industry or investment
Chateau‖) (e)
Yantai Development Zone
Changyu Trading Co., Ltd.Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Sales 100%
(―Development ZoneProvince, China China or investment
Trading‖)
Shenzhen Changyu Wine
Shenzhen City, Guangdong Shenzhen City, Guangdong Acquired by establishment
Marketing Ltd. (―Shenzhen Sales 100%
Province, China Province, China or investment
Marketing‖)
Yantai Fushan District
Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Changyu Trading Co., Ltd. Sales 100%
Province, China China or investment
(―Fushan Trading‖)
Beijing AFIP Meeting Center Miyun County, Beijing City, Miyun County, Beijing City, Service Acquired by establishment
100%
(―Meeting Center‖) China China industry or investment
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Beijing AFIP Tourism and
Miyun County, Beijing City, Miyun County, Beijing City, Tourism Acquired by establishment
Culture Company (―AFIP 70%
China China industry or investment
Tourism‖) (f)
Yinchuan City, the Ningxia
Yinchuan City, the Ningxia Hui Manufacturing Acquired by establishment
Ningxia Wine Hui Autonomous Region, 100%
Autonomous Region, China industry or investment
China
Yantai Changyu Tinlot
Yantai City, Shandong Yantai City, Shandong Province, Wholesale and Acquired by establishment
Chateau Co., Ltd. (―Tinlot 100%
Province, China China retail or investment
Chateau‖)
Qingtongxia City, the Ningxia
Qing Tong Xia Changyu Wine Qingtongxia City, the Ningxia Acquired by establishment
Marketing Ltd. (―Qing Tong Hui Autonomous Region, Sales 100%
Xia Sales) Hui Autonomous Region, China or investment
China
Shihezi City, the Xinjiang
Shihezi City, the Xinjiang Uygur Manufacturing Acquired by establishment
Shihezi Chateau Uygur Autonomous Region, 100%
Autonomous Region, China industry or investment
China
Ningxia Changyu Mosel XV Yinchuan City, the Ningxia
Yinchuan City, the Ningxia Hui Manufacturing Acquired by establishment
Chateau Co., Ltd. (―Ningxia Hui Autonomous Region, 100%
Autonomous Region, China industry or investment
Chateau‖) China
Shaanxi Changyu Ruina
Xianyang City, Shaanxi Xianyang City, Shaanxi Manufacturing Acquired by establishment
Chateau Co., Ltd. (―Chang‘an 100%
Province, China Province, China industry or investment
Chateau‖)
Yantai Changyu Wine
Research and Development Yantai City, Shandong Yantai City, Shandong Province, Manufacturing Acquired by establishment
100%
Co., Ltd. (―Development Province, China China industry or investment
Centre‖)
Wine
Changyu (Huanren) Wine Benxi City, Liaoning City, Acquired by establishment
Benxi City, Liaoning City, China making/project 100%
Co., Ltd. (―Huanren Wine‖) China or investment
establishment
Shihezi City, the Xinjiang
Xinjiang Changyu Wine Sales Shihezi City, the Xinjiang Uygur Acquired by establishment
Uygur Autonomous Region, Sales 100%
Co., Ltd. (―Xinjiang Sales‖) Autonomous Region, China or investment
China
Shihezi City, the Xinjiang
Xinjiang Changyu Wine Co., Shihezi City, the Xinjiang Uygur Manufacturing Acquired by establishment
Uygur Autonomous Region, 100%
Ltd. (―Xinjiang Wine‖) Autonomous Region, China industry or investment
China
Ningxia Changyu Trading Yinchuan City, the Ningxia Yinchuan City, the Ningxia Hui Acquired by establishment
Sales 100%
Co., Ltd. (―Ningxia Trading‖) Hui Autonomous Region, Autonomous Region, China or investment
103
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
China
Shaanxi Changyu Ruina Wine
Xianyang City, Shaanxi Xianyang City, Shaanxi Acquired by establishment
Sales Co., Ltd. (―Shaanxi Sales 100%
Province, China Province, China or investment
Sales‖)
Penglai Changyu Wine Sales Penglai City, Shandong Penglai City, Shandong Province, Acquired by establishment
Sales 100%
Co., Ltd. (―Penglai Wine‖) Province, China China or investment
Laizhou Changyu Wine Sales Laizhou City, Shandong Laizhou City, Shandong Acquired by establishment
Sales 100%
Co., Ltd. (―Laizhou Sales‖) Province, China Province, China or investment
Investment Acquired by establishment
法尚控股 Cognac, France Cognac, France 100%
trade or investment
Lanzhou City, Gansu Lanzhou City, Gansu Province, Acquired by establishment
Lanzhou Sales Sales 100%
Province, China China or investment
Acquired by establishment
Beijing Trading Beijing City, China Beijing City, China Sales 100%
or investment
Acquired by establishment
Tianjin Pioneer Tianjin City, China Tianjin City, China Sales 100%
or investment
Fuzhou City, Fujian Province, Fuzhou City, Fujian Province, Acquired by establishment
Fuzhou Pioneer Sales 100%
China China or investment
Nanjing City, Jiangsu Nanjing City, Jiangsu Province, Acquired by establishment
Nanjing Pioneer Sales 100%
Province, China China or investment
Xianyang City, Shaanxi Xianyang City, Shaanxi Acquired by establishment
Xianyang Pioneer Sales 100%
Province, China Province, China or investment
Shenyang City, Liaoning Shenyang City, Liaoning Acquired by establishment
Shenyang Pioneer Sales 100%
Province, China Province, China or investment
Jinan City, Shandong Jinan City, Shandong Province, Acquired by establishment
Jinan Pioneer Sales 100%
Province, China China or investment
Acquired by establishment
Shanghai Pioneer Shanghai City, China Shanghai City, China Sales 100%
or investment
Fuzhou City, Jiangxi Province, Fuzhou City, Jiangxi Province, Acquired by establishment
Fuzhou Pioneer Sales 100%
China China or investment
Shijiazhuang City, Hebei Shijiazhuang City, Hebei Acquired by establishment
Shijiazhuang Pioneer Sales 100%
Province, China Province, China or investment
Hangzhou City, Zhejiang Hangzhou City, Zhejiang Acquired by establishment
Hangzhou Yuzefeng Sales 100%
Province, China Province, China or investment
Jilin Pioneer Changchun City, Jilin Changchun City, Jilin Province, Sales 100% Acquired by establishment
104
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Proportion of
Business
Name of subsidiary Principal business location Registration place shareholding Acquisition mode
nature
Direct Indirect
Province, China China or investment
Acquired by establishment
Beijing Pioneer Beijing City, China Beijing City, China Sales 100%
or investment
Harbin City, Heilongjiang Harbin City, Heilongjiang Acquired by establishment
Harbin Pioneer Sales 100%
Province, China Province, China or investment
Changsha City, Hunan Changsha City, Hunan Province, Acquired by establishment
Hunan Pioneer Sales 100%
Province, China China or investment
Yinchuan City, the Ningxia
Yinchuan City, the Ningxia Hui Acquired by establishment
Yinchuan Pioneer Hui Autonomous Region, Sales 100%
Autonomous Region, China or investment
China
Kunming City, Yunnan Kunming City, Yunnan Province, Acquired by establishment
Kunming Pioneer Sales 100%
Province, China China or investment
Acquired by establishment
Chongqing Pioneer Chongqing City, China Chongqing City, China Sales 100%
or investment
Zhengzhou City, Henan Zhengzhou City, Henan Acquired by establishment
Zhengzhou Pioneer Sales 100%
Province, China Province, China or investment
Wuhan City, Hubei Province, Wuhan City, Hubei Province, Acquired by establishment
Wuhan Pioneer Sales 100%
China China or investment
Taiyuan City, Shanxi Taiyuan City, Shanxi Province, Acquired by establishment
Taiyuan Pioneer Sales 100%
Province, China China or investment
Hohhot City, the Nei Monggol Hohhot City, the Nei Monggol Acquired by establishment
Hohhot Pioneer Sales 100%
Autonomous Region, China Autonomous Region, China or investment
Chengdu City, Sichuan Chengdu City, Sichuan Province, Acquired by establishment
Chengdu Pioneer Sales 100%
Province, China China or investment
Nanning City, the Guangxi Nanning City, the Guangxi
Acquired by establishment
Nanning Pioneer Zhuang Autonomous Region, Zhuang Autonomous Region, Sales 100%
or investment
China China
Lanzhou Changyu Pioneer Lanzhou City, Gansu Lanzhou City, Gansu Province, Acquired by establishment
Sales 100%
Wine Co., Ltd. Province, China China or investment
Yantai Roullet-Fransac
Yantai City, Shandong Yantai City, Shandong Province, Acquired by establishment
Imported Wine Sales Co., Sales 100%
Province, China China or investment
Ltd.
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Explanation for difference between the proportion of shareholding and proportion of voting
power in the subsidiary:
(a) Xinjiang Tianzhu is a subsidiary of the Company obtained by merger and acquisition, whose 60%
of the shares are held by the Company. The Company realizes the full power to control its strategic
operating, investing and financing policies of Xinjiang Tianzhu by contract arrangement. The
contract arrangement will terminate on December 31, 2018.
(b) Changyu Chateau is a Sino-foreign joint venture established by the Company and a foreign
investor, whose 70% of the shares are held by the Company. The Company realizes the full power to
control its strategic operating, investing and financing policies of Changyu Chateau by contract
arrangement. The contract arrangement will terminate on December 31, 2022.
(c) Langfang Castel is a Sino-foreign joint venture established by the Company, whose 49% of the
shares are held by the Company and its subsidiary. The Company realizes the full power to control
its strategic operating, investing and financing policies of Langfang Castel by contract arrangement.
The contract arrangement will terminate on December 31, 2022.
(d) Beijing Chateau is a limited liability company established by the Company and a domestic
investor, whose 70% of the shares are held by the Company. The Company realizes the full power to
control its strategic operating, investing and financing policies of Beijing Chateau by contract
arrangement. The contract arrangement will terminate on September 2, 2019.
(e) Icewine Chateau is a Sino-foreign joint venture established by the Company and a foreign
investor, whose 51% of the shares are held by the Company. The Company realizes the full power to
control its strategic operating, investing and financing policies of Icewine Chateau by contract
arrangement. The contract arrangement will terminate at December 31, 2016.
(f) AFIP Tourism is a limited liability company established by the Company and a domestic investor,
whose 70% of the shares are held by the Company. The Company realizes the full power to control
its strategic operating, investing and financing policies of AFI Tourism by contract arrangement. The
contract arrangement will terminate on September 2, 2019.
9.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
Dividend declared to be
Profit/loss attributable to Balance of minority
Shareholding proportion distributed to the
Name of subsidiary the minority shareholders shareholder‘s interest at
of minority shareholders minority shareholders in
in this term the end of term
this term
Xinjiang Tianzhu 40% 56,093,912
Changyu Chateau 30% 12,365,016
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Dividend declared to be
Profit/loss attributable to Balance of minority
Shareholding proportion distributed to the
Name of subsidiary the minority shareholders shareholder‘s interest at
of minority shareholders minority shareholders in
in this term the end of term
this term
Langfang Castel 51% 22,702,522
Beijing Chateau 30% 35,293,868
Icewine Chateau 49% 33,319,062
AFIP Tourism 30% 2,966,399
Explanation for difference between the proportion of shareholding and proportion of voting power of
the minority shareholders in the subsidiary:
See details in Note 9.1.
9.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance
Name of
Non-current Non-current
subsidiary Current assets Total assets Current liabilities Total liabilities
assets liabilities
Xinjiang 90,242,113 86,630,471 176,872,584 7,382,764 5,336,114 12,718,878
Tianzhu
Changyu 69,349,422 117,622,193 186,971,615 104,090,314 104,090,314
Chateau
Langfang 29,769,110 23,409,422 53,178,532 8,158,095 8,158,095
Castel
Beijing 159,695,412 529,896,933 689,592,345 573,346,512 2,222,363 575,568,875
Chateau
Icewine
60,231,042 30,510,438 90,741,480 28,462,531 100,000 28,562,531
Chateau
AFIP Tourism 35,378,113 989,898 36,368,011 17,416,870 17,416,870
Unit: Yuan
Beginning balance
Name of
Non-current Non-current
subsidiary Current assets Total assets Current liabilities Total liabilities
assets liabilities
Xinjiang 86,541,666 89,469,815 176,011,481 7,165,015 5,336,114 12,501,129
Tianzhu
Changyu 56,430,830 113,883,719 170,314,549 88,220,921 88,220,921
Chateau
107
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Beginning balance
Name of
Non-current Non-current
subsidiary Current assets Total assets Current liabilities Total liabilities
assets liabilities
Langfang 29,986,460 24,229,921 54,216,381 7,753,321 7,753,321
Castel
Beijing 113,589,773 544,577,614 658,167,387 549,595,386 2,666,835 552,262,221
Chateau
Icewine 43,424,068 30,796,802 74,220,870 10,073,994 100,000 10,173,994
Chateau
AFIP Tourism 22,013,654 1,138,756 23,152,410 4,847,671 4,847,671
Unit: Yuan
Amount incurred in this term Amount incurred in last term
Name of
Operating Total Operating Operating Total Operating cash
subsidiary Net profit Net profit
income comprehensive cash flow income comprehensive flow
income income
Xinjiang 65,111,307 643,354 643,354 2,190,239 31,963,458 -2,703,224 -2,703,224 3,412,418
Tianzhu
Changyu 37,153,833 787,674 787,674 -1,684,390 38,866,996 3,099,755 3,099,755 13,376,850
Chateau
Langfang
27,859,048 456,864 456,864 -1,645,940 26,943,014 221,457 221,457 -1,443,907
Castel
Beijing
75,082,711 8,118,305 8,118,305 50,443,509 51,140,545 -9,145,407 -9,145,407 7,204,826
Chateau
Icewine
27,030,519 715,756 715,756 -4,588,284 16,805,693 -4,607,180 -4,607,180 -11,845,350
Chateau
AFIP
12,813,202 646,402 646,402 -1,330,490 43,598,750 453,445 453,445 20,472,307
Tourism
10. Risks related to financial instruments
The main financial instruments of this Group include monetary capital, bills receivable, accounts
receivable, interest receivable, other receivables, other non-current assets, short-term loans, bills payable,
accounts payable, other payables, interest payable, long-term loans, etc., see details of each financial
instrument in Note 7. The risks related to these financial instruments and risk management policies adopted
by this Group to reduce these risks are as follows. The management of this Group manages and monitors
these risk exposures to ensure that the above-mentioned risks are controlled within a defined scope.
This Group adopts sensitivity analysis technique to analyze the possible influence of possible reasonable
108
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
changes of risk variables on current profit and loss and shareholders‘ equity. Since any risk variable merely
changes independently and the final influence of relevance between variables on the change of certain risk
variable will exert a great effect, the following content is carried out under the hypothesis that each variable
changes independently.
10.1 Risk management objective and policy
The risk management objective of this Group is to achieve proper balance between risks and benefits, to
minimize the negative influence of the risks on the business performance of this Group and to maximize the
shareholders‘ benefit. Based on this risk management objective, the basic risk management strategy of this
Group is to determine and analyze various risks faced by this Group, to set up proper risk tolerance bottom
line and to carry out risk management, and to supervise various risks timely and reliably to control the risks
within a defined scope.
10.1.1 Market risk
① Foreign exchange risk
Foreign exchange risk refers to risk of causing loss due to exchange rate fluctuation. The foreign exchange
risk borne by this Group is mainly relevant to EUR and HKD, except that the overseas subsidiaries of this
Group carry out purchase and sales with EUR and except for loans in EUR and HKD, other main business
activities of this Group are priced and settled with RMB. As at June 30, 2015, except that the assets and
liabilities mentioned in the table below are balance in EUR and HKD, the assets and liabilities of this Group
are balance in RMB. The foreign exchange risk caused by the assets and liabilities of balance in these
currencies may exert an influence on the business performance of this Group.
Unit: Yuan
Item Ending balance Beginning balance
Monetary capital 344,061.00
Long-term loan 188,566,200.00 209,380,000.00
109
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
This Group pays close attention to the influence of exchange rate fluctuation on the foreign exchange risk of
this Group. This Group has not taken any measures to avoid the foreign exchange risk at present.
Sensitivity analysis of foreign exchange risk
With the other variables unchanged, the pre-tax influence of possible reasonable exchange rate fluctuation on
current profit and loss and shareholders‘ equity is as follows:
Unit: Yuan
This year
Item Exchange rate fluctuation
Influence on profit of this term Influence on shareholders‘ equity
HKD 5% appreciation against RMB -5,993,360 -5,993,360
HKD 5% depreciation against RMB 5,993,360 5,993,360
EUR 5% appreciation against RMB -3,434,950 -3,434,950
EUR 5% depreciation against RMB 3,434,950 3,434,950
② Interest rate risk – risk of change in cash flow
The risk of change in cash flow of financial instruments caused by interest rate change of this Group is mainly
relevant to the monetary capital and long-term loan at floating interest rate. The policy of this Group is to
maintain the floating interest rate of these loans to eliminate the risk of change in fair value of the interest
rate.
Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the hypothesis that the change in market interest rate
influences the interest income or expense of financial instruments at variable rate.
The management of this Group thinks that the interest rate risk of deposit in bank borne by this Group is not
significant, therefore the sensitivity analysis of interest rate of deposit in bank is not disclosed here.
On the basis of the above-mentioned hypothesis, with the other variables unchanged, the pre-tax influence of
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
possible reasonable exchange rate fluctuation on current profit and loss and shareholders‘ equity is as follows:
Unit: Yuan
This year
Item Interest rate change
Influence on profit of this term Influence on shareholders‘ equity
Bank loan Increase by 50 BP -506,261 -506,261
Bank loan Decrease by 50 BP 506,261 506,261
10.1.2 Credit risk
As at June 30, 2015, the largest credit risk exposure possibly causing the financial loss of this Group
mainly comes from the loss generated by the financial assets of this Group caused by failure of
another party of the contract in fulfilling obligations.
To lower the credit risk, this Group only trades with the recognized and reputable third party. In
accordance with the policy of this Group, credit check shall be carried out for all customers requiring
to adopt form of credit to trade. In addition, this Group conducts continuous monitoring on the
balance of accounts receivable to ensure that this Group will not face major risk of bad debts. For
transactions not settled with recording currency of relevant business units, unless the credit control
department of this Group specially approves, this Group will not provide credit trade terms. In
addition, this Group audits the collection of each single significant account receivable on each date
of balance sheet to ensure that sufficient bad-debt provision is accrued for accounts unable to be
collected. Therefore, the management of this Group thinks the credit risk borne by this Group is
greatly reduced.
Since this Group only trades with the recognized and reputable third party, no collateral is required.
The credit risk is managed centrally according to the customer/counter-party, geographic area and
industry. As at June 30, 2015, 45.1% of accounts receivable of this Group come from top five
borrowers in accounts receivable of this Group (December 31, 2014: 33.6%). This Group holds no
collateral or other credit enhancement for balance of accounts receivable.
111
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Analysis of financial assets with single impairment incurred
On the date of balance sheet, for accounts receivable of Tiantong Securities Co., Ltd. with single
confirmed impairment incurred, since this company is insolvent, this Group has accrued bad-debt
provision in full.
10.1.3 Liquidity risk
When managing the liquidity risk, this Group reserves and monitors the cash and cash equivalents
the management considers sufficient to satisfy the operation need of this Group and reduce the
influence of fluctuation in cash flow. The management of this Group monitors the use of bank loans
and ensures to abide by the loan agreement.
10.1.4 Disclosure of fair value – fair value of financial assets and liabilities not measured by fair
value
The management of this Group thinks that as at June 30, 2015, the book value of financial assets and
liabilities measured by amortized cost is close to the fair value thereof.
11. Related parties and related transactions
11.1 Particulars of the parent company of this Enterprise
Proportion of Proportion of voting
Name of parent shareholding of the powers of the parent
Registered place Business nature Registered capital
company parent company in company in this
this enterprise enterprise
Changyu Group
Yantai City Manufacturing 50,000,000 50.40% 50.40%
Company
From January to June 2015, there was no fluctuation in registered capital of the parent company and
its share of equity interest and share of voting rights.
Final controlling parties of this Enterprise are jointly controlled by four parties including
State-owned Assets Supervision and Administration Commission of Yantai Guofeng Investment
Holding Co., Ltd., ILLVA Saronno Holding SPA, International Finance Corporation and Yantai
112
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Yuhua Investment and Development Co., Ltd.
11.2 Particulars of the subsidiaries of this Enterprise
See particulars of the subsidiaries of this Enterprise in Note 9.
11.3 Particulars of other related parties
Name of other related parties Relationship of other related parties with this Enterprise
Yantai Changyu Wine Culture Museum Co., Ltd. (―Wine Culture
Company controlled by the same parent company
Museum‖)
Yantai Changyu International Window of the Wine City Company
Company controlled by the same parent company
Limited (―Window of the Wine City‖)
Yantai God Horse Packing Co., Ltd. (―God Horse Packing‖) Company controlled by the same parent company
Yantai Zhongya Pharmaceutical Tonic Wine Co., Ltd. (―Zhongya
Company controlled by the same parent company
Pharmaceutical‖)
11.4 Related transactions
11.4.1 Related transactions of purchasing and selling goods and providing and receiving services
List of purchasing goods/receiving services
Unit:Yuan
Related Amount incurred Approved transaction Whether exceed Amount incurred in
Related parties
transactions in this term limit transaction limit or not last term
God Horse Packing Purchasing goods 82,426,894 190,000,000 No 60,982,785
Zhongya
Purchasing goods 2,471,868 5,500,000 No 1,176,307
Pharmaceutical
Wine Culture
Purchasing goods 3,487,207 1,000,000 No 2,536,312
Museum
Window of the Wine
Purchasing goods 243,761 4,500,000 No 269,090
City
List of selling goods/providing services
Unit: Yuan
Related parties Related transactions Amount incurred in this term Amount incurred in last term
Wine Culture Museum Selling goods 4,186,529 3,426,136
Window of the Wine City Selling goods 3,712,629 4,349,779
Zhongya Pharmaceutical Selling goods 749,724 427,973
God Horse Packing Selling goods 27,988
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
The price of transactions between this Group and the related parties are based on the negotiated
price.
From January to June 2015, the proportion of purchasing goods from the Group to the related parties
accounted for 9.5% of the total purchases of the Group.
From January to June 2015, the proportion of selling goods from the Group to the related parties was
lower than 1% of the total sales of the Group.
11.4.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
11.4.3 Leasing with related parties
The Company as a leasee:
Unit: Yuan
Leasing payment recognised in Leasing payment recognised in
Name of the lessor Type of leased assets
this term last term
Changyu Group Company Warehouse and office building 2,929,000 2,929,000
Pursuant to a lease contract dated January 1, 2012 signed between the Company and the Changyu
Group 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 2015, the rental expenses payable of the Group to the Changyu Group
Company amounted to RMB 2,929,000 Yuan.
11.4.4 Guarantee with related parties
Nil
11.4.5 Inter-bank borrowing and lending of related parties
Nil
11.4.6 Asset transfer and debt recombination of related parties
Nil
11.4.7 Other related transactions
Item Note Amount incurred in this term Amount incurred in last term
Trademark usage (a)
52,568,600 43,413,264
fee
Patents fee (b) 25,000 25,000
a. Trademark royalty contract
Pursuant to a trademark royalty contract dated May 18, 1997 signed by the Company and the
Changyu Group Company, starting from September 18, 1997, the Company may use certain
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
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 2015,
patent fee paid to related parties accounted for 100% of that of the Group.
b. Patent implementation license
Pursuant to a patent implementation license dated May 18, 1997 signed by the Company and the
Changyu Group 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 2015, the
patents usage fee payable to Changyu Group Company amounted to RMB 25,000 Yuan. From
January to June 2015, patent fee paid to related parties accounted for 100% of that of the Group.
11.5 Accounts receivable and payable of the related parties
11.5.1 Accounts receivable
Unit: Yuan
Ending balance Beginning balance
Item Related parties Book Bad debt Bad debt
Book balance
balance provision provision
Accounts receivable Zhongya Pharmaceutical 1,378,843
Accounts receivable God Horse Packing 15,820
Accounts receivable Window of the Wine City 496,669
11.5.2 Accounts payable
Unit: Yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 29,522,489 53,027,076
Accounts payable Zhongya Pharmaceutical 3,990,046 6,550,051
Accounts payable Wine Culture Museum 1,122,348 1,043,208
Accounts payable Window of the Wine City 59,668
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Other accounts payable Changyu Group Company 49,614,600 77,809,993
Other accounts payable God Horse Packing 200,000
12. Commitment and contingency
12.1 Significant commitment
Unit: Yuan
Item Ending balance Beginning balance
Capital commitment 556,370,000 687,460,000
12.2 Contingency
By the balance sheet date, the Group and the Company do not have any undisclosed contingencies to
be disclosed.
13. Matters after balance sheet
13.1 Important non-adjusting events
Nil
13.2 Profit distribution
Unit: Yuan
Profits or dividends to be distributed 301,604,160
Allocated profits or dividends approved to declare upon
301,604,160
discussion
According to the decision of the Shareholders‘ Meeting dated May 22, 2015, based on the issued share capital
of 685,464,000 shares in 2014, the Company allocates RMB 4.4 Yuan in cash (including tax) for every 10
shares to all shareholders with total cash dividends of RMB 301,604,160 Yuan. Cash dividends had been
issued on July 18, 2015.
14. Other important matters
Nil
15. Notes on major items of financial statements of the parent company
15.1 Accounts receivable
15.1.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Type Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Amount Proportion Amount Accrued Amount Proportion Amount Accrued
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
proportion proportion
Accounts receivable of
significant single amount
and single accrued bad debt
provision
Accounts receivable accrued
bad debt provision by credit
risk features
Accounts receivable of
insignificant single amount
142,139 100% 142,139 1,516,518 100% 1,516,518
and single accrued bad debt
provision
Total 142,139 100% 142,139 1,516,518 100% 1,516,518
15.1.2 Bad debt provision accrued, received or transferred back in this term
The bad debt provision accrued in this term is RMB 0 Yuan; and that received or transferred back in
this term is RMB 0 Yuan.
15.1.3 Accounts receivable actually canceled after verification in this term
Nil
15.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage of total
Relationship with the
Unit Amount Aging accounts receivable
Company
(%)
Other related party of
Changyu Travelling Co., Ltd. 61,121 Within 1 year 43.00%
the Company
Yantai Changyu International Window of the Other related party of
81,018 Within 1 year 57.00%
Wine City Company Limited the Company
Total 142,139 100.00%
15.1.5 Accounts receivable terminating recognisation due to transfer of financial assets
Nil
15.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
15.2 Other accounts receivable
15.2.1 Other accounts receivable disclosed by type
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type
Accrued Book value Accrued Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other accounts receivable of
significant single amount and 4,409,291,695 99.6% 7,199,521 0.2% 4,402,092,174 4,701,016,368 99.7% 7,199,521 0.2% 4,693,816,847
single accrued bad debt provision
Other accounts receivable
accrued bad debt provision by
credit risk features
Other accounts receivable of
insignificant single amount and 15,590,017 0.4% 15,590,017 15,019,429 0.3% 15,019,429
single accrued bad debt provision
Total 4,424,881,712 100% 7,199,521 0.20% 4,417,682,191 4,716,035,797 100% 7,199,521 0.20% 4,708,836,276
Other accounts receivable of significant single amount and single accrued bad debt provision at the end of term:
Unit: Yuan
Ending balance
Other accounts receivable (by unit)
Other accounts receivable Bad debt provision Accrued proportion Reason for accrual
Tiantong Securities Co., Ltd. 7,199,521 7,199,521 100% This company is in bankruptcy liquidation
Total 7,199,521 7,199,521 -- --
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
15.2.2 Bad debt provision accrued, received or transferred back in this term
The bad debt provision accrued in this term is RMB 0 Yuan; and that received or transferred back in
this term is RMB 0 Yuan.
15.2.3 Other accounts receivable listed by nature
Unit: Yuan
Nature of fund Ending book balance Beginning book balance
Accounts receivable of subsidiaries 4,398,952,145 4,699,819,825
Cash pledge and cash deposit receivable 10,000
Petty cash receivable 660,563
Excise drawback, real estate tax drawback 8,797,245 1,924,913
Others 16,461,759 14,291,059
Total 4,424,881,712 4,716,035,797
15.2.4 Other accounts receivable collected by the borrower of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage of total
Ending balance of
Unit Nature of fund Ending balance Aging ending balance of other
bad debt provision
accounts receivable
Internal
Yantai Changyu Wine Research and
incomings and 1,289,216,404 Within 1 year 29.2%
Development Co., Ltd.
outgoings
Internal
Shaanxi Changyu Ruina Chateau Co., Ltd. incomings and 772,647,858 Within 1 year 17.5%
outgoings
Internal
Xinjiang Changyu Baron Balboa Chateau Co.,
incomings and 595,802,073 Within 1 year 13.5%
Ltd.
outgoings
Internal
Beijing Changyu AFIP Wine Chateau Co., Ltd. incomings and 528,489,866 Within 1 year 12.0%
outgoings
Internal
Ningxia Changyu Moser XV Chateau Co., Ltd. incomings and 421,104,000 Within 1 year 9.5%
outgoings
Total -- 3,607,260,201 -- 81.7%
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
15.2.5 Accounts receivable related to government allowance
Nil
15.2.6 Other accounts receivable terminating recognisation due to transfer of financial assets
Nil
15.2.7 Other accounts receivable transferred and included in assets and liabilities
Nil
15.3 Long-term equity investment
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment on subsidiaries 1,093,087,027 1,093,087,027 1,093,437,027 1,093,437,027
Investment on joint-run
business and joint venture
Total 1,093,087,027 1,093,087,027 1,093,437,027 1,093,437,027
15.3.1 Investment on subsidiaries
Unit: Yuan
Provision for
Ending balance of
Beginning Increase in this Decrease in this impairment
Invested unit Ending balance impairment
balance term term reserve in this
reserve
term
Xinjiang Tianzhu
60,000,000 60,000,000
(a)
Kylin Packaging 23,176,063 23,176,063
Changyu Chateau
28,968,100 28,968,100
(a)
AFIP Tourism (a) 350,000 350,000
Pioneer
3,500,000 3,500,000
International (b)
Ningxia Growing 1,000,000 1,000,000
National Wines 2,000,000 2,000,000
Ice Wine Chateau
30,440,500 30,440,500
(a)
Beijing Chateau (a) 77,000,000 77,000,000
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Provision for
Ending balance of
Beginning Increase in this Decrease in this impairment
Invested unit Ending balance impairment
balance term term reserve in this
reserve
term
Sales Company 7,200,000 7,200,000
Langfang Sales (b) 100,000 100,000
Langfang Castel
19,835,730 19,835,730
(a)
Wine Sales 4,500,000 4,500,000
Shanghai Sales (b) 300,000 300,000
Beijing Sales 850,000 850,000
Jingyang Sales (b) 100,000 100,000
Jingyang Wine (b) 900,000 900,000
Ningxia Wine 1,000,000 1,000,000
Ningxia Chateau 2,000,000 2,000,000
Tinlot Chateau 80,000,000 80,000,000
Shihezi Chateau 150,000,000 150,000,000
Chang‘an Chateau 20,000,000 20,000,000
Development
500,000,000 500,000,000
Centre
Huanren Wine 11,000,000 11,000,000
Fashang Holding 69,216,634 69,216,634
Total 1,093,437,027 350,000 1,093,087,027
15.4 Operating income and operating cost
Unit: Yuan
Amount incurred in this term Amount incurred in last term
Item
Income Cost Income Cost
Main business 681,772,322 541,216,825 684,914,588 560,904,239
Other business 7,280,907 7,169,011 4,982,691 4,840,750
Total 689,053,229 548,385,836 689,897,279 565,744,989
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Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
15.5 Investment income
Unit: Yuan
Item Amount incurred in this term Amount incurred in last term
Income from long-term equity investment by cost method 46,770,286 65,474,283
Income from long-term equity investment by equity method
Investment income from disposal of long-term equity investment
Investment income of the financial assets measured at their fair
values and the variation of which is recorded into the current
profit and loss during the holding period
Investment income gained from disposal of the financial assets
measured at their fair values and the variation of which is
recorded into the current profit and loss
Investment income of held-to-maturity investment during the
holding period
Investment income of financial assets held for sale during the
holding period
Investment income gained from disposal of financial assets held
for sale
Gains generated from the remaining equity remeasured as per fair
value after the loss of control
Total 46,770,286 65,474,283
16. Supplementary materials
16.1 List of current non-current profits/losses
Unit: Yuan
Item Amount Remark
Profits/losses on disposal of non-current assets 1,421
Tax return, deduction and exemption approved beyond the
authority or without formal approval document
Government allowance included in the current profits/losses
(excluding those closely related to the enterprise business and
6,527,952
enjoyed in accordance with the unified standard quota or ration of
the state)
Payment for use of funds by non-financial enterprises included in
the current profits/losses
122
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Amount Remark
Income obtained when the investment cost obtained by the
enterprise from subsidiaries, joint-run business and joint venture
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, etc.
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
123
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
Item Amount Remark
Other non-operating income and expenditure besides the above
1,913,510
items
Other profits/losses conforming to the definition of non-current
profits/losses
Minus: Influenced amount of income tax 1,814,638
Influenced amount of minority shareholders‘ equity
Total 6,628,245 --
16.2 Return on net assets and earnings of per share
Earnings per share
Weighted average return on net
Profit incurred in this term Basic EPS Diluted EPS
assets
(Yuan/Share) (Yuan/Share)
Net profit attributable to common shareholders
10.34% 1.09 1.09
of the Company
Net profit attributable to common shareholders
of the Company deducting non-incidental 10.25% 1.08 1.08
profits/losses
16.3 Accounting data difference under domestic and foreign accounting standard
16.3.1 Net profits & net assets difference disclosed in the financial report according to the
international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits Net assets
Amount incurred in Amount incurred in last
Ending balance Beginning balance
this term term
In accordance with the
746,060,248 638,041,311 7,582,367,402 6,840,452,145
Chinese accounting standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 746,060,248 638,041,311 7,582,367,402 6,840,452,145
standard
124
Yantai Changyu Pioneer Wine Co. Ltd. 2015 Semi-annual Report
X、Catalogue of Documents for Future Reference
1、2015 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、The Prospectus and Public Offering Announcement for Stock B in 1997, the Prospectus and The
Shares’ Change & Public Offering Announcement for Stock A in 2000.
4、The originals of all documents and announcements that the Company made public during the
report period in the newspapers designated by China Securities Regulatory Commission.
Yantai Changyu Pioneer Wine Company Limited
Board of Director
28th August, 2015
125
