2018 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.: 2018-Final04 Yantai Changyu Pioneer Wine Co. Ltd. 2018 the Third Quarter Report Main Body 2018-Final 04 October 2018 1 2018 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co., Ltd. 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. Zhou Hongjiang (Person in charge of the company) and Mr. Jiang Jianxun (Person in charge of accounting and accounting organ, also Financial Director) assure the truthfulness, accuracy and completeness of the financial statements in the quarter report. 2 2018 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. II、Corporate Information 1. Key accounting data and financial indicators Whether the Company makes retroactive adjustments or restates the accounting data of previous fiscal years. □ Yes V No The end of the The end of last year More or less than report period last year (%) Total assets (CNY) 12,907,492,685 12,536,755,208 2.96% Net Assets attributed to the 9,340,814,814 8,906,342,299 4.88% shareholders of the listed company (CNY) More or From beginning of More or less than less than The report period year to end of report last year (%) last year period (%) Business income (CNY) 1,032,328,986 0.14% 3,860,559,050 1.65% Net profit attributed to the 133,916,250 -8.35% 769,753,655 -5.69% shareholders of the listed company (CNY) Net profit attributed to the 110,520,695 -20.39% 717,199,414 -9.27% shareholders of the listed company after deducting the irregular profit and loss (CNY) Net cash flows from the -- -- 776,840,794 -3.69% operating activities (CNY) Basic earnings per share (CNY) 0.20 -4.76% 1.12 -5.88% Diluted earnings per share 0.20 -4.76% 1.12 -5.88% (CNY) Weighted average for earning 1.43% -0.25% 8.35% -1.21% rate of the net assets Details of irregular profit and loss V Yes □ No Unit:CNY From beginning of year Item Explanation to end of report period Gain on disposal of non-current assets, including -76,376 the reversal of accrued impairment provision Government grants credited in profit and loss (except for those recurring government grants that are closely related to the entity's operation, 66,841,126 in line with related regulations and have proper basis of calculation) Other non-operating income and expenses 2,950,317 Less: Income tax effect 17,083,755 3 2018 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. Minority interests effect(after-tax) 77,071 Total 52,554,241 -- 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 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. 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 39,225 (20,581of Stock Total number of preferred 0 Total number of common A and 18,644 of Stock B shareholders with recover shareholders at the end of report ed voting power at the en period d of report period The top 10 common shareholders Number Pledged or of frozen Character of Percentage Name of Shareholders Shares held restricte shareholders (%) Share Amo d status unt shares Domestic non- YANTAI CHANGYU GROUP state-owned 50.40% 345,473,856 0 -- 0 COMPANY LIMITED legal person Foreign legal GAOLING FUND,L.P. 3.08% 21,090,219 0 -- 0 person CHINA SECURITIES FINANCE State-owned 2.25% 15,440,794 0 -- 0 CORP legal person BBH BOS S/A FIDELITY FD - Foreign legal 2.22% 15,241,826 0 -- 0 CHINA FOCUS FD person SHENWAN HONGYUAN Foreign legal SECURITIES(HONGKONG) person 1.27% 8,685,618 0 -- 0 LIMITED TAIKANG LIFE INSURANCE Others COMPANY LIMITED – UNITED 1% 6,887,535 0 -- 0 LINKED – INDUSTRIES ALLOCATION FIDELITY PURITAN TRUST: Foreign legal FIDELITY SERIES INTRINSIC person 0.89% 6,100,762 0 -- 0 OPPORTUNITIES FUND TAIKANG LIFE INSURANCE Others 0.84% 5,740,737 0 -- 0 COMPANY LIMITED --- 4 2018 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. DIVIDEND ---PERSONAL INSURANCE DIVIDEND --- 019L---FH002SHEN GUOTAI JUNAN Foreign legal SECURITIES(HONGKONG) person 0.73% 5,038,107 0 -- 0 LIMITED CENTRAL HUIJIN ASSET State-owned 0.69% 4,761,200 MANAGEMENT LTD. legal person The top 10 common shareholders with unrestricted shares Name of Shareholders Number of Type of share unrestricted Type of Amount shares held share YANTAI CHANGYU GROUP COMPANY LIMITED 345,473,856 A share 345,473,856 GAOLING FUND,L.P. 21,090,219 B share 21,090,219 CHINA SECURITIES FINANCE CORP 15,440,794 A share 15,440,794 BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 15,241,826 B share 15,241,826 SHENWAN HONGYUAN SECURITIES(HONGKONG) B share 8,685,618 8,685,618 LIMITED TAIKANG LIFE INSURANCE COMPANY LIMITED – A share 6,887,535 6,887,535 UNITED LINKED – INDUSTRIES ALLOCATION FIDELITY PURITAN TRUST: FIDELITY SERIES B share 6,100,762 6,100,762 INTRINSIC OPPORTUNITIES FUND TAIKANG LIFE INSURANCE COMPANY LIMITED -- A share - DIVIDEND ---PERSONAL INSURANCE DIVIDEND - 5,740,737 5,740,737 -- 019L---FH002SHEN GUOTAI JUNAN SECURITIES(HONGKONG) B share 5,038,107 5,038,107 LIMITED CENTRAL HUIJIN ASSET MANAGEMENT LTD. 4,761,200 A share 4,761,200 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 action relationship with the other 9 listed shareholders, and the of the top 10 shareholders relationship among the other shareholders is unknown. Explanation for the top 10 common shareholders who No involved in 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 V Not available 5 2018 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. III Major Issue 1. Great changes and reasons on main accountant data and financial index √Available □Not available Compared the end of the report period with the beginning of the year, accounts receivable decreases by 17.8%, mainly due to the recovery of previous goods payment; advance payment increases by 49.29%, mainly due to the growth of advance payment for packaging material; other account receivable decreases by 32.93%, mainly due to the recovery of partial cash deposit paid in earlier stage and investment amount of minority shareholders; other current assets increases by 48.53%, mainly due to the increase in input tax not deducted in this period; goodwill increases by 28.92%, mainly due to the company’s acquisition of Kilikanoon in Australia; assets of deferred income tax decreases by 15.65%, mainly due to the decrease in unrealized profit of inventory in the internal transaction and wage payable; advance receipt decreases by 28.43%, mainly due to the decrease in obtainment of advance payment from distributors; tax payable decreases by 51.39%, mainly due to the decrease in added-value tax payable and consumption tax payable; other accounts payable increases by 26.74%, mainly due to the increase in advertising expense payable; non-current liabilities due within one year increases by 42.29%, mainly due to the increase in long-term loan due within one year; other comprehensive income increases by 239.64%, mainly due to the increase in translation differences arising on translation of foreign currency financial statements. Compared the period from the beginning of the year to the end of report period with the same period of last year, financial expense increases by 14.93%, mainly due to the incorporation of newly-acquired overseas enterprise into the consolidation scope; other income increases by 124.23%, mainly due to the increase in governmental subsidy; other cash received related to operating activities increases by 44.64%, due to the increase in governmental subsidy; other cash received related to financing activities increases by 1704.52%, mainly due to the repeating of fixed deposit pledged for the company’s long-term loan. 2. Analysis explanation of the major issue’s process, its influence and the solution □Available V Not available 3. The commitments that the Company’s actual controllers, shareholders, related parties, purchasers, the Company and other related parties do not implement completely exceeding the time limit within report period √available □not available Commitment Commitment Commitment Commitment Commitment Commitments Implementation Party Type content time period 6 2018 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. Commitments at - - share reform Commitments made in acquisition - - - - report or equity changes report Commitments at asset - - - - restructuring Yantai Solve Changyu horizontal Non-horizontal Has been Group Co., competition 1997.05.18 Permanent competition performing Ltd Clear the According to purpose of "Trademark brand royalty License Contract", the Company will pay trademark Commitments at royalty for the the initial public "Changyu"produ offering or Yantai cts of Yantai refinancing Changyu Changyu Group Has been Group Co., 1997.05.18 Permanent Co., Ltd every performing Ltd year, Yantai Changyu Group Co., Ltd will use trademark to advertise Changyu trademarks and the Contract products. 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 limit and are not completed, specific reasons of not No completing the implementation and the next step 4. Forecast on the operating performance in the year of 2018 7 2018 the Third Quarter Report Main Body of Yantai Changyu Pioneer Wine Co. Ltd. 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 V Not available 5. The situation of security investment □Available V Not available There is no security investment during the report period. 6. The situation of derivative investment □Available V Not available There is no derivative investment during the report period. 7. The activities registration form of receptions, communication and interview etc. during the report period □Available V Not available There are no activities of receptions, communication and interview etc. during the report period. 8. The Company’s receptions, studies, communications and visits Available □Not available Reception mode Reception object Basic information index of Reception Time type investigate and survey < Investor Relations Activity Record of Yantai Changyu Pioneer Wine Company 2018.07.02 Field survey Institution Limited > in ‘Investor Relations Information on CNINFO website (www.cninfo.com.cn) 9. The situation of illegal external guarantee □Available V Not available There is no illegal external guarantee during the report period. 10. The situation of non-operating fund occupation of controlling shareholders and related parties □Available V Not available There is no non-operating fund occupation of controlling shareholders and related parties during the report period. Yantai Changyu Pioneer Wine Co., Ltd. Board of Directors 30th October 2018 8