2017 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd Shares Code: 000869. 200869 Shares Abbreviation: Changyu A、Changyu B Notice No.: 2017-Final04 Yantai Changyu Pioneer Wine Co. Ltd. 2017 Third Quarter Report Main Body I. Important Notice The board of directors,the board of supervisors,directors, supervisors & senior managers of the Company collectively and individually accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this report and confirm that to the best of their knowledge and belief there are no unfaithful facts, significant omissions or misleading statements. All directors attended the meeting for deliberating this quarter report. Mr. Sun Liqiang (Chairman of the Company), Mr. Leng Bin (Chief Financial Officer) and Mr. Jiang Jianxun (Financial Director) assure the truthfulness, accuracy and completeness of the financial report in the annual report. 1 2017 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. II、Key financial data and shareholders changing 1. Key financial data Whether the Company needs to make retroactive adjustments or restates the accounting data of previous fiscal years □Yes No The end of the report The end of last year More or less than period last year(%) Total assets (CNY) 12,096,803,825 11,528,077,971 4.93% Net Assets attributed to the shareholders of the listed 8,690,391,034 8,209,010,989 5.86% company (CNY) More or less From the beginning More or less The report period than of year to the end than last year of the report period last year Business income (CNY) 1,030,899,920 2% 3,797,998,117 0.91% Net profit attributed to the shareholders of the listed 146,115,408 12.61% 816,184,462 -1.04% company (CNY) Net profit attributed to the shareholders of the listed 138,825,432 12.86% 790,473,838 -1.37% company after deducting the irregular profit and loss (CNY) Net cash flows from the -- -- 806,627,830 -18.61% operating activities (CNY) Basic earnings per share (CNY) 0.21 10.53% 1.19 -0.83% Diluted earnings per share 0.21 10.53% 1.19 -0.83% (CNY) Weighted average for earning 1.68% 0.08% 9.56% -0.03% rate of the net assets Item and amount of irregular profit and loss Available □Not available Unit:CNY From beginning of year to Item Explanation end of report period Gain on disposal of non-current assets, including the -773,087 reversal of accrued impairment provision Tax return, deduction and exemption with unauthorized approval or no official document of 17,764,950 approval Government subsidies recorded in current profit and loss (except the government subsidies that closely 12,044,794 related to enterprise business and enjoyed by rationing or quantifying according to uniform Nation Standard Other non-operating income and expenses 4,722,476 Less: Income tax effect 8,048,509 2 2017 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Total 25,710,624 -- The reasons shall be made clear and definitely as to the irregular profit and loss that the Company has defined by virtue of the Explanatory Announcement on Public Company’s Information Disclosure No.1 - Irregular Profit and Loss and as to regarding the irregular profit and loss as recurrent profit and loss as specified in the Explanatory Announcement on Public Company’s Information Disclosure No.1 - Irregular Profit and Loss. □Available 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. 2. The total number of shareholders and top 10 shareholders at the end of the report period 1) The number of the common shareholders and preferred shareholders with recovered voting power as well as the shareholding of top 10 shareholders Unit: share Total number of preferred Total number of common shareholders shareholders with recovered 48,049 0 at the end of report period voting power at the end of report period The top 10 common shareholders Number Pledged or Character of Percentage of frozen Name of Shareholders Shares held shareholders (%) restricted Share Amount shares status Domestic non- YANTAI CHANGYU GROUP state-owned 50.40% 345,473,856 0 0 COMPANY LIMITED legal person Foreign legal GAOLING FUND,L.P. 3.11% 21,300,919 0 0 person CHINA SECURITIES State-owned 2.32% 15,924,155 0 0 FINANCE CORP legal person BBH BOS S/A FIDELITY FD - Foreign legal 2.22% 15,241,826 0 0 CHINA FOCUS FD person GUOTAI JUNAN Foreign legal SECURITIES(HONGKONG) 0.95% 6,531,520 0 0 person LIMITED FIDELITY PURITAN TRUST: FIDELITY SERIES Foreign legal 0.88% 6,000,851 0 0 INTRINSIC person OPPORTUNITIES FUND CENTRAL HUIJIN ASSET State-owned 0.69% 4,761,200 0 0 MANAGEMENT LTD. legal person BBH A/C VANGUARD Foreign legal EMERGING MARKETS 0.55% 3,788,487 0 0 person STOCK INDEX FUND 3 2017 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. FIDELITY CHINA SPECIAL Foreign legal 0.55% 3,779,202 0 0 SITUATIONS PLC person Foreign legal NORGES BANK 0.52% 3,558,797 0 0 person The top 10 common shareholders with unrestricted shares Number of Type of share Name of Shareholders unrestricted Type of share Amount shares held YANTAI CHANGYU GROUP COMPANY 345,473,856 A share 345,473,856 LIMITED GAOLING FUND,L.P. 21,300,919 B share 21,300,919 CHINA SECURITIES FINANCE CORP 15,924,155 A share 15,924,155 BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 15,241,826 B share 15,241,826 GUOTAI JUNAN SECURITIES(HONGKONG) 6,531,520 B share 6,531,520 LIMITED FIDELITY PURITAN TRUST: FIDELITY SERIES 6,000,851 B share 6,000,851 INTRINSIC OPPORTUNITIES FUND CENTRAL HUIJIN ASSET MANAGEMENT LTD. 4,761,200 A share 4,761,200 BBH A/C VANGUARD EMERGING MARKETS 3,788,487 B share 3,788,487 STOCK INDEX FUND FIDELITY CHINA SPECIAL SITUATIONS PLC 3,779,202 B share 3,779,202 NORGES BANK 3,558,797 B share 3,558,797 Among the top 10 shareholders, Yantai Changyu Group The explanation for the associated Company Limited has no associated relationship or accordant relationship and accordant action of action relationship with the other 9 listed shareholders, and the the top 10 shareholders relationship among the other shareholders is unknown. Explanation for the top 10 common shareholders who involved in No financing activities and stock trading business(if any) Whether or not the Company’s top 10 common shareholders and top 10 common shareholders with unrestricted shares promise to buy back trading during the report period □Yes No There are no top 10 common shareholders and top 10 common shareholders with unrestricted shares in the Company promise to buy back trading during the report period. 2) The total number of the preferred shareholders and top 10 preferred shareholders at the end of the report period □Available Not available 4 2017 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. III Major Issue 1. The great change and reasons on key financial data and financial index Available □Not available Compared the end of the report period with the beginning of the year, interest receivable increased by 1255.85%, mainly due to increase in interest receivable of bank deposit; account receivable increased by 30.46%, mainly due to increase in goods payment receivable owed by clients; other account receivable increased by 72.39%, mainly due to increase in account receivable of VAT refund; other current assets increased by 80.17%, mainly due to increase in VAT to be deducted; construction in process increased by 24.28%, mainly due to increase in accumulated investment amount of the Company’s investment projects under construction; intangible assets increased by 28.68%, mainly owing that acquired Indomita Wine Company Chile, SpA was included in the consolidated statement; deposit received decreased by 41.57%, mainly due to decrease in client payment for goods; other payables increased by 34.88%, mainly due to increase in payable advertising expense; long-term loan increased by 248.73%, mainly due to increase in long-term loan obtained from the bank. Compared from January to September of 2017 with the same period last year, non-business income decreased by 82.98%, mainly owing that government subsidy was adjusted from non-business income to other income according to new accounting standard; non-operating expenditures increased by 82.43%, mainly due to loss from disposing non-current assets; translation differences arising on translation of foreign currency financial statements increased by 947.96%, mainly due to influence of foreign currency upvaluation when statement of overseas enterprise was converted to CNY statement; tax refund received in the cash flow statement increased by 215.29%, mainly due to increase in VAT refunds received by Indomita Wine Company Chile, SpA; other cash received related to operating activities increased by 53.79%, mainly due to increase in government subsidy; net cash paid to acquire branch and other business unit increased by 40372.19%, mainly due to payment of investment amount for the acquisition of Indomita Wine Company Chile, SpA. 2. Analysis explanation of the major issue’s process, its influence and the solution □Available Not available 5 2017 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. 3. The commitments that the Company’s actual controllers, shareholders, related parties, purchasers, the Company or other commitment parties do not complete up performing during the report period Available □Not available Commitment Commitment Commitment Commitment Commitment Commitments Implementation Party Type Content Time Period Commitments at share reform - - Commitments made in acquisition report - - - - or equity changes report Commitments at asset restructuring - - - - Yantai Changyu Solve horizontal Non-horizontal Has been 1997.05.18 Permanent Group Co., Ltd competition competition performed According to "Trademark License Contract", the Company will pay trademark royalty for the "Changyu"produ Commitments at the initial public Defining the cts of Yantai offering or refinancing Yantai Changyu uses of Changyu Group Has been 1997.05.18 Permanent Group Co., Ltd trademark use Co., Ltd every performed fee year, Yantai Changyu Group Co., Ltd will use trademark to advertise Changyu trademarks and the Contract products. 6 2017 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. Equity incentive commitments - - Commitments made to the minority - - - - - shareholders of the Company Commitment under timely Yes implementation or not For commitments that exceed the time No limit and are not completed, specific reasons of not completing the implementation and the next step 4. Forecast on the operating performance in 2017 Warning and explanation for the estimation on the possible loss of cumulative net profit in the period from the beginning of this year to the end of the next report period or the great change comparing with same period of last year. □Available Not available 5. The situation of security investment □Available Not available There is no security investment during the report period. 6. The situation of derivative investment □Available Not available There is no derivative investment during the report period. 7. The activities registration form of reception investigation, communication and interview etc. during the report period □Available Not available There are no activities of reception investigation, communication and interview etc. during the report period. 7 2017 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. 8. The situation of illegal external guarantee □Available Not available There is no illegal external guarantee during the report period. 9. The situation of non-operating fund occupation of controlling shareholders and related parties □Available Not available There is no non-operating fund occupation of controlling shareholders and related parties during the report period. 10. The situation of carrying out social responsibility of precise poverty There is no carried out precise poverty and no plan for subsequent precise poverty during the third quarter report period. Yantai Changyu Pioneer Wine Co. Ltd. Board of Directors 26th October 2017 8