2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co., Ltd. Yantai Changyu Pioneer Wine Co., Ltd. 2019 the Third Quarter Report Final 2019-04 October 2019 1 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co., Ltd. I. Important Notice The board of directors, the board of supervisors, directors, supervisors and senior executives of the Company guarantee the truthfulness, accuracy and completeness of the contents contained in the third quarter report with no false records, misleading statements or significant omissions, and undertake individual and joint legal liabilities. All directors attended the meeting for deliberating this quarter report. Mr. Zhou Hongjiang (Person in charge of the Company), Mr. Jiang Jianxun (Person in charge of accounting work) and Mrs. Guo Cuimei (Person in charge of accounting organ & Accountant in charge) assure the truthfulness, accuracy and completeness of the financial statements in the third quarter report. 2 2019 the Third Quarter Report 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 √ No The end of this The end of last year More or less than report period last year (%) Total assets (CNY) 13,191,032,907.00 13,117,729,052.00 0.56% Net Assets attributed to the shareholders of the listed 9,900,902,802.00 9,606,099,365.00 3.07% company (CNY) From the More or More or less than beginning of the less than This report period last year (%) year to the end of last year this report period (%) Operating income (CNY) 968,100,175.00 -6.22% 3,526,374,960.00 -8.66% Net profit attributed to the shareholders of the listed 125,557,834.00 -6.24% 728,961,623.00 -5.30% company (CNY) Net profit attributed to the shareholders of the listed company after deducting the 119,702,422.00 8.31% 672,193,117.00 -6.28% irregular profit and loss (CNY) Net cash flow from operating -- -- 645,331,713.00 -16.93% activities (CNY) Basic earnings per share 0.18 -5.26% 1.06 -5.36% (CNY) Diluted earnings per share 0.18 -5.26% 1.06 -5.36% (CNY) Weighted average for earning 1.31% -0.12% 7.38% -0.97% rate of the net assets Details of irregular profit and loss √Available □Not available Unit:CNY Amount from the Item beginning of the year to Explanation the end of report period Gain on disposal of non-current assets, including -166,664.00 the reversal of accrued impairment provision Government grants credited in profit and loss (except for those recurring government grants 69,007,365.00 that are closely related to the entity's operation, in line with related regulations and have proper 3 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. basis of calculation) In addition to the effective hedging business related to the Company’s normal business, the profit and loss from changes in fair value arising from the holding of transactional financial assets, derivative financial assets, transactional financial liabilities and derivative financial liabilities, and 830,841.00 the investment income from disposal of transactional financial assets, derivative financial assets, transactional financial liabilities, derivative financial liabilities and other debt investments Other non-operating income and expenses 5,352,597.00 Less: Income tax effect 18,196,023.00 Minority interests effect(after-tax) 59,610.00 Total 56,768,506.00 -- 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 the shareholding of top 10 shareholders at the end of the report period 1) The total number of common shareholders and the total number of preferred shareholders with recovered voting power as well as the shareholding of top 10 shareholders Unit: share 42639 Total number of preferred 0 Total number of common shareholders with recovere shareholders at the end of report d voting power at the end o period f report period (if have) The top 10 common shareholders Number Pledged or Shareholdin Number of of frozen Character of Name of Shareholders g ratio holding restricte shareholders Share Num (%) shares d status ber shares Domestic non- YANTAI CHANGYU GROUP state-owned 50.40% 345,473,856 0 -- 0 CO. LTD. legal person Foreign legal GAOLING FUND,L.P. person 3.08% 21,090,219 0 -- 0 CHINA SECURITIES State-owned legal person 2.25% 15,440,794 0 -- 0 FINANCE CORP 4 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. BBH BOS S/A FIDELITY FD - Foreign legal 2.22% 15,241,826 0 -- 0 CHINA FOCUS FD person SHENWAN HONGYUAN Foreign legal SECURITIES(HONG KONG) 1.27% 8,732,233 0 -- 0 person LIMITED FIDELITY PURITAN TRUST: Foreign legal FIDELITY SERIES INTRINSIC 0.93% 6,350,762 0 -- 0 person OPPORTUNITIES FUND GUOTAI JUNAN Foreign legal SECURITIES(HONGKONG) 0.76% 5,207,553 0 -- 0 person LIMITED CENTRAL HUIJIN ASSET State-owned 0.69% 4,761,200 0 -- 0 MANAGEMENT LTD. legal person VANGUARD EMERGING Foreign legal MARKETS STOCK INDEX 0.55% 3,788,487 0 -- 0 person FUND FIDELITY CHINA SPECIAL Foreign legal 0.55% 3,779,202 0 SITUATIONS PLC person The shareholding of top 10 shareholders with unrestricted shares Name of Shareholders Number of Type of share unrestricted Type of Number shares held share YANTAI CHANGYU GROUP CO. LTD. 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(HONG 8,732,233 B share 8,732,233 KONG) LIMITED FIDELITY PURITAN TRUST: FIDELITY SERIES 6,350,762 B share 6,350,762 INTRINSIC OPPORTUNITIES FUND GUOTAI JUNAN SECURITIES(HONGKONG) 5,207,553 B share 5,207,553 LIMITED CENTRAL HUIJIN ASSET MANAGEMENT LTD. 4,761,200 A share 4,761,200 VANGUARD EMERGING MARKETS STOCK 3,788,487 B share 3,788,487 INDEX FUND FIDELITY CHINA SPECIAL SITUATIONS PLC 3,779,202 B share 3,779,202 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 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 conduct agreed buy-back transaction during the report period □ Yes √ No 5 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. There are no top 10 common shareholders or top 10 common shareholders with unrestricted shares in the Company conduct agreed buy-back transaction during the report period. 2) The total number of preferred shareholders and the shareholding of top 10 preferred shareholders □Available √Not available 6 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. III Major Issue 1. Situation and reasons on changes in main financial data and financial index during the report period √Available □Not available Compared the end of the report period with the beginning of the year, Notes Receivable decreases by 100%, mainly due to adjustment to Receivables Financing resulting from change in accounting policy; Accounts Receivable decreases by 18.12%, mainly due to the reduce in credit sale resulting from the reduce in the direct supply business of sales business; Interest Receivable increases by 107.65%, mainly due to the received one-off interest resulting from the expiration of fixed deposit; Accounts Payable decreases by 20.34%, mainly owing to the payment of previous debt; Advances From Customers decreases by 29.42%, mainly owing to the reduce in accumulated Advances From Customers resulting from the improvement in the Company’s production efficiency and the shortening of supply period after receiving the payment; Interest Payable increases by 389.91%, mainly owing that the Company’s overseas enterprise need to pay the expired loan interest all at once; Deferred Tax Liabilities decreases by 25.15%, mainly owing to the amortization of assets appraisal appreciation resulting from the business combination not under common control. Compared the first three quarters in 2019 with the same period in last year, Financial Expenses and Interest Expenses respectively decreases by 29.91% and 29.42%, mainly owing to obtainment of forestry loan with discounted interest this year; Non-operating Income increases by 30.57%, mainly owing to the increased waste income including offcut sales etc. Compared the third quarter in 2019 with the same period in last year, Financial Expenses decreases by 26.68%, mainly owing to the increase in Interest Income; Interest Income increases by 187.05%, mainly owing to the increase in fixed deposit and call deposit; Other Income decreases by 83.38%, mainly owing to the year-on-year decrease in received government grants; Loss for Impairment of Assets increases by 739.26%, mainly owing to the loss on inventory valuation. 2. Analysis explanation of the major issue’s progress as well as its influence and solution □Available √Not available Implementation progress of share repurchases □Available √Not available Implementation progress of reducing repurchased shares by the way of centralized competitive bidding □Available √Not available 7 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 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 the report period √Available □Not available Commitment Commitment Commitment Commitment Commitment Commitments Implementation Party Type content time period Commitments at shareholding - - 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 According to License Contract, Trademark the trademark use License fee annually charged by Yantai Contract, the Changyu Group trademark use fee Commitments at Co., Ltd. shall be annually paid by the initial public mainly used to this company to offering or Yantai publicize Yantai Changyu trademarks refinancing Changyu Group Co., Ltd. including Group Co., will be mainly 1997.05.18 Permanent Chagnyu and Ltd. used by Yantai contractual Changyu Group products. Except Co., Ltd. to 2013 to 2017 publicize during which the trademarks commitment was including not strictly Chagnyu and performed, Yantai contractual Changyu Group products. Co., Ltd. has been performing the commitment. Equity incentive 8 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. commitments Commitments made to the minority - - - - shareholders of the Company Commitment under timely No implementation or not According to the Trademark License Contract (hereafter referred to as “the Contract”), Changyu Group promises that the trademark use fee annually paid by this Company to Changyu Group shall be mainly used by Changyu Group to publicize trademarks and contractual products. But above- mentioned ‘mainly’ is not a specific number, which is easy to cause divergence due to different understanding and leads to problem appearance during the implementation process. From 2013 to 2017, Changyu Group collected the total trademark use fee of CNY420,883,902, of which 51% should be used to publicize trademarks including Changyu and contract products with the Detailed amount of CNY214,650,790. The amount has been used to publicize trademarks including Changyu explanation for and contract products is CNY50,025,181, with a balance of CNY164,625,609. In 2018 and 2019, the specific reasons of collected trademark use fee for 2017 and 2018 is CNY155,623,907, of which 51% should be used to unimplemented publicize trademarks including Changyu and contract products with the amount of CNY79,368,193. commitment as The amount has been used to publicize trademarks including Changyu and contract products is well as next work CNY12,225,187, with a balance of CNY67,143,006. plan if From 2013 to December 31st, 2018, the accumulated balance that should be used by Changyu Group commitment is to publicize trademarks including Changyu and contract products is CNY231,768,615. not completed in Changyu Group promises that the four-year trademark use fee from 2019 to 2022 will be used for the commitment offset. If insufficient, the shortfall would be filled in one time in 2023. If there is any excess, the period excess portion of the trademark use fee would be collected from the year with excess occurrence. If Changyu Group is not able to implement above-mentioned commitment owing to various reasons, this Company will timely supervise and urge Changyu Group to fulfill its commitment and request Changyu Group to raise funds through bank loaning, assets sales and equity sales etc in order to implement the commitment. For other details, please refer to Announcement on Commitment Issues of Yantai Changyu Group Company Limited disclosed by this Company on April 4th, 2019. 4. The situation of security investment □Available √ Not available There is no security investment during the report period. 5. Entrusted financial management □Available √ Not available There is no entrusted financial management during the report period. 6. The situation of derivative investment □Available √ Not available There is no derivative investment during the report period. 9 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 7. The activity registration form of receptions, communication and interview etc. during the report period √ Available □Not available Type of reception Basic information index of Reception Time Reception mode investigation and survey object Investor Relations Activity Registration Form on 2019.09.06 Other Individual September 6th, 2019 disclosed by the Company 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 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Ⅳ Financial Statements 1. Financial statements 1) Consolidated balance sheet Yantai Changyu Pioneer Wine Co., Ltd. Unit: CNY th st Item September 30 , 2019 December 31 , 2018 Current Assets: Monetary fund 1,485,486,851.00 1,475,700,477.00 petty cash Lending funds Transactional financial assets Financial assets measured by fair value with changes recorded into current profits and losses Derivative financial assets Notes receivable 288,667,988.00 Accounts receivable 198,265,958.00 242,153,083.00 Receivables Financing 213,036,791.00 Accounts prepaid 4,252,695.00 4,219,949.00 Premiums receivable Reinsurance accounts receivable Receivable reserves for reinsurance contract Other receivables 21,630,327.00 22,636,086.00 Including: Interest receivable 2,767,325.00 1,332,681.00 Dividends receivable Buying back the sale of financial assets Inventory 2,907,547,242.00 2,724,591,457.00 Contract assets Assets classified as holding for sale Non-current assets expire in one year Other current assets 265,584,006.00 258,676,396.00 Total Current Assets 5,095,803,870.00 5,016,645,436.00 Non-current Assets: Offering loans and imprest Debt investment Financial assets for sale 467,251.00 Other debt investment Held-to-maturity investment Long-term account receivable 11 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Long-term equity investment 43,776,540.00 Investment in other equity instrument Other non-current financial assets 511,751.00 Real estate for investment 30,177,815.00 31,572,489.00 Fixed assets 5,612,020,771.00 5,749,731,667.00 Construction in progress 867,068,782.00 759,296,591.00 Biological assets for production 203,908,753.00 209,266,373.00 Oil and gas assets Right-of-use assets Intangible assets 650,906,119.00 655,473,459.00 Development expenditure Goodwill 149,437,671.00 165,199,111.00 Long-term deferred expenses 273,228,605.00 244,640,416.00 Deferred tax assets 264,192,230.00 285,436,259.00 Other non-current assets Total Non-Current Assets 8,095,229,037.00 8,101,083,616.00 Total Assets 13,191,032,907.00 13,117,729,052.00 Current liabilities: Short-term loan 687,652,403.00 688,002,410.00 Borrowings from the Central Bank Borrowing funds Transactional financial liability Financial liabilities measured by fair value with changes recorded into current profits and losses Derivative financial liabilities Notes payable Accounts payable 568,467,737.00 713,572,881.00 Advances from customers 159,561,019.00 226,075,244.00 Sales/buyback financial assets Customer and interbank deposits Acting trading securities Acting underwriting securities Wage payable 174,007,285.00 212,304,217.00 Tax payable 193,650,463.00 128,912,790.00 Other accounts payable 606,326,760.00 608,479,890.00 Including: Interest payable 3,492,202.00 712,826.00 Dividend payable 1,323,735.00 Payable handling fees and commission Dividend payable for reinsurance Contract liabilities Liabilities classified as holding for sale Non-current liabilities expire in one year 170,422,720.00 152,940,788.00 Other current liabilities 14,753,257.00 15,860,254.00 Total Current Liabilities 2,574,841,644.00 2,746,148,474.00 Non-Current Liabilities: Insurance contract reserve Long-term borrowings 158,900,681.00 156,480,662.00 12 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Bonds payable Preferred Stock Perpetual capital securities Lease liability Long-term accounts payable 201,000,000.00 225,000,000.00 Long-term accrued payroll Estimated liabilities Deferred income 60,247,288.00 70,367,039.00 Deferred tax liabilities 16,475,961.00 22,010,647.00 Other non-current liabilities 7,159,222.00 7,234,853.00 Total non-current liabilities 443,783,152.00 481,093,201.00 Total liabilities 3,018,624,796.00 3,227,241,675.00 Owner’s equity (or shareholders’ equity): Capital stock 685,464,000.00 685,464,000.00 Other equity instruments Preferred Stock Perpetual capital securities Capital reserve 566,209,403.00 565,955,441.00 Minus: treasury stock Other comprehensive income -16,889,429.00 2,965,377.00 Special reserves Surplus reserve 342,732,000.00 342,732,000.00 General risk preparation Undistributed profits 8,323,386,828.00 8,008,982,547.00 Total owner's equity attributable to the holding 9,900,902,802.00 9,606,099,365.00 company Minority interests 271,505,309.00 284,388,012.00 Total owner's equity 10,172,408,111.00 9,890,487,377.00 Total liabilities and owner's equity 13,191,032,907.00 13,117,729,052.00 Legal representative: Zhou Hongjiang; Person in charge of accounting : Jiang Jianxun; Person in charge of accounting organ: Guo Cuimei 2) Balance sheet of parent company Unit: CNY th st Item September 30 , 2019 December 31 , 2018 Current Assets: Monetary fund 570,192,493.00 624,588,809.00 Transactional financial assets Financial assets measured by fair value with changes recorded into current profits and losses Derivative financial assets Notes receivable 39,885,254.00 Accounts receivable 1,447,973.00 Receivables Financing 15,855,750.00 Accounts prepaid 3,533.00 227.00 13 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Other receivables 601,547,442.00 1,025,643,356.00 Including: Interest receivable 217,553.00 254,088.00 Dividends receivable 4,103,925.00 500,000,000.00 Inventory 422,486,614.00 385,154,740.00 Contract assets Assets classified as holding for sale Non-current assets expire in one year Other current assets 34,571,033.00 24,704,844.00 Total Current Assets 1,644,656,865.00 2,101,425,203.00 Non-current Assets: Debt investment Financial assets for sale Other debt investment Held-to-maturity investment Long-term account receivable Long-term equity investment 7,429,282,512.00 7,420,803,069.00 Investment in other equity instrument Other non-current financial assets Real estate for investment 30,177,815.00 31,572,489.00 Fixed assets 260,483,702.00 265,311,274.00 Construction in progress 6,740,745.00 6,311,701.00 Biological assets for production 120,424,630.00 125,002,793.00 Oil and gas assets Right-of-use assets Intangible assets 65,459,702.00 67,244,066.00 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 22,594,502.00 24,194,967.00 Other non-current assets 1,229,700,000.00 972,700,000.00 Total Non-Current Assets 9,164,863,608.00 8,913,140,359.00 Total Assets 10,809,520,473.00 11,014,565,562.00 Current liabilities: Short-term loan 150,000,000.00 150,000,000.00 14 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Transactional financial liability Financial liabilities measured by fair value with changes recorded into current profits and losses Derivative financial liabilities Notes payable Accounts payable 30,969,787.00 132,704,304.00 Advances from customers Contract liabilities Wage payable 60,111,310.00 72,345,179.00 Tax payable 3,342,995.00 13,111,431.00 Other accounts payable 634,030,378.00 607,974,519.00 Including: Interest payable 163,125.00 181,250.00 Dividend payable Liabilities classified as holding for sale Non-current liabilities expire in one year Other current liabilities 3,433,054.00 3,433,054.00 Total Current Liabilities 881,887,524.00 979,568,487.00 Non-Current Liabilities: Long-term borrowings Bonds payable Preferred Stock Perpetual capital securities Lease liability Long-term accounts payable Long-term accrued payroll Estimated liabilities Deferred income 6,601,526.00 8,910,918.00 Deferred tax liabilities Other non-current liabilities 2,951,042.00 2,710,575.00 Total non-current liabilities 9,552,568.00 11,621,493.00 Total liabilities 891,440,092.00 991,189,980.00 Owner’s equity (or shareholders’ equity): Capital stock 685,464,000.00 685,464,000.00 Other equity instruments Preferred Stock 15 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Perpetual capital securities Capital reserve 557,222,454.00 557,222,454.00 Minus: treasury stock Other comprehensive income Special reserves Surplus reserve 342,732,000.00 342,732,000.00 Undistributed profits 8,332,661,927.00 8,437,957,128.00 Total owner's equity 9,918,080,381.00 10,023,375,582.00 Total liabilities and owner's equity 10,809,520,473.00 11,014,565,562.00 3) Consolidated profit statement in this report period Unit: CNY Amount in this report Amount in prior Item period report period 1. Revenue 968,100,175.00 1,032,328,986.00 Including: Operating income 968,100,175.00 1,032,328,986.00 Interest income Earned premium Handling fees and commission income 2. Total operating costs 799,392,634.00 880,955,872.00 Including: Operating costs 348,321,823.00 394,965,077.00 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 62,058,908.00 45,258,725.00 Selling expenses 315,345,327.00 357,743,961.00 Administrative expenses 63,818,230.00 68,182,863.00 Research and development expenditure 1,149,179.00 2,940,503.00 Financial expenses 8,699,167.00 11,864,743.00 Including: Interest expenses 9,525,615.00 8,659,111.00 Interest income 5,589,246.00 1,947,160.00 Plus:Other income 4,795,473.00 28,858,248.00 Investment profit (loss is listed with "-") -128,956.00 Including: Investment profit for joint-run -959,797.00 business and joint venture Termination of recognized income of financial assets measured at amortized cost (loss is listed with "-") 16 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Exchange income (loss is listed with "-") Net exposure hedging income (Loss islisted with “-”) Fair value charge profit (loss is listed with "-") Loss of credit impairment(loss is listed with "-") -1,417,236.00 0.00 Loss for impairment of assets(loss is listed with -4,457,409.00 -531,111.00 "-") Assets disposal income (loss is listed with "-") -167,802.00 -170,334.00 3. Operating profit (loss is listed with "-") 167,331,611.00 179,529,917.00 Plus: Non-operating income 2,667,687.00 2,775,336.00 Minus: Non-operating expenditure 726,954.00 439,049.00 4. Total profits (total loss is listed with "-") 169,272,344.00 181,866,204.00 Minus: Income taxes 43,673,789.00 47,969,306.00 5. Net profit (net loss is listed with "-") 125,598,555.00 133,896,898.00 (一)Classification by continuous operation 1.Net profit from continuous operation(net loss is listed with "-") 2.Net profit from terminational operation(net loss is listed with "-") (二)Classification by ownership 1.Net profits attribute to equity holders of the company 125,557,834.00 133,916,250.00 2. Minority interests 40,721.00 -19,352.00 6. Net value of other comprehensive income after tax -16,794,085.00 19,757,123.00 6.1 Net value of other comprehensive income after tax of -16,794,085.00 16,681,680.00 holding company's owners 6.1.1 Other comprehensive income that will not be classified into the profit and loss 6.1.1.1 Changes of the defined benefit plans that re- measured 6.1.1.2 Other comprehensive income under equity method that cannot be transfer to gain/loss 6.1.1.3 Change of fair value of investment in other equity instrument 6.1.1.4 Fair value change of enterprise's credit risk 6.1.1.5 Other 6.1.2 Other comprehensive income that will be -16,794,085.00 16,681,680.00 classified into the profit and loss 6.1.2.1 Other comprehensive income under equity method that can transfer to gain/loss 6.1.2.2 Change of fair value of other debt investment 6.1.2.3 gain/loss of fair value changes for available-for-sale financial assets 6.1.2.4 Amount of financial assets re-classify to other comprehensive income 6.1.2.5 Gain/loss of held-to-maturity investments that re- classify to ailable-for-sale financial asset 6.1.2.6 Credit impairment provision for other debt investmen 6.1.2.7 Cash flow hedging reserve 17 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 6.1.2.8 Translation differences arising on translation of -16,794,085.00 16,681,680.00 foreign currency financial statements 6.1.2.9 Other 6.2 Net value of other comprehensive income after tax 3,075,443.00 of minority shareholders 7.Total comprehensive Income 108,804,470.00 153,654,021.00 Total comprehensive income of holding company 108,763,749.00 150,597,930.00 Total comprehensive income of minority shareholders 40,721.00 3,056,091.00 8. Earnings per share 8.1 Basic earnings per share 0.18 0.19 8.2 Diluted earnings per share 0.18 0.19 During this report period, the issue relates to company consolidation under common control, consolidated party completes net profit amount of CNY 0 before being consolidated, and consolidated party completes net profit amount of CNY 0 in the same period of last year. Legal representative: Zhou Hongjiang; Person in charge of accounting: Jiang Jianxun; Person in charge of accounting organ: Guo Cuimei 4) Profit statement of parent company in this report period Unit: CNY Amount in this Amount in prior Item report period report period 1. Revenue 200,488,769.00 185,358,483.00 Minus: Operating costs 184,071,670.00 163,922,392.00 Taxes and surcharges 10,446,607.00 9,009,093.00 Selling expenses Administrative expenses 16,494,204.00 21,186,737.00 Research and development expenditure 206,023.00 500,205.00 Financial expenses -547,440.00 6,173,386.00 Including: Interest expenses 2,190,828.00 2,223,333.00 Interest income 3,602,659.00 -1,543,446.00 Plus:Other income 858,264.00 1,160,677.00 Investment profit (loss is listed with "-") 55,000,000.00 79,850,000.00 Including: Investment profit for joint-run business and joint venture Termination of recognized income of financial assets measured at amortized cost (loss is listed with "-") Net exposure hedging income (Loss islisted with “-”) Fair value charge profit (loss is listed with "-") Loss of credit impairment (loss is listed with "-") Loss for impairment of assets (loss is listed with "-") Assets disposal income (loss is listed with "-") 21,901.00 -528.00 18 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 2. Operating profit (loss is listed with "-") 45,697,870.00 65,576,819.00 Plus: Non-operating income 122,208.00 812,444.00 Minus: Non-operating expenses 748,159.00 299,472.00 3. Total profits (total loss is listed with "-") 45,071,919.00 66,089,791.00 Minus: Income tax -181,802.00 -1,834,728.00 4. Net profit (net loss is listed with "-") 45,253,721.00 67,924,519.00 1.Net profit from continuous operation(net loss is listed with "-") 45,253,721.00 67,924,519.00 2.Net profit from terminational operation(net loss is listed with "- ") 5. Net value of other comprehensive income after tax 5.1 Other comprehensive income that will not be classified into the profit and loss 5.1.1 Remeasure the changes in net assets or liabilities of defined benefit plans 5.1.2 Shares of other comprehensive income from investee which cannot be reclassified into profit and loss under the equity method 5.1.3 Change of fair value of investment in other equity instrument 5.1.4 Fair value change of enterprise's credit risk 5.1.5 Other 5.2 Other comprehensive income that will be classified into the profit and loss 5.2.1 Other comprehensive income under equity method that can transfer to gain/loss 5.2.2 Change of fair value of other debt investment 5.2.3 gain/loss of fair value changes for available-for-sale financial assets 5.2.4 Amount of financial assets re-classify to other comprehensive income 5.2.5 Gain/loss of held-to-maturity investments that re-classify to ailable-for-sale financial asset 5.2.6 Credit impairment provision for other debt investment 5.2.7 Cash flow hedging reserve 5.2.8 Translation differences arising on translation of foreign currency financial statements 5.2.9 Other 6. Total comprehensive income 45,253,721.00 67,924,519.00 7. Earnings per share 7.1 Basic earnings per share 0.07 0.10 7.2 Diluted earnings per share 0.07 0.10 19 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 5) Consolidated profit statement from the beginning of the year to the end of the report period Unit: CNY Amount in this Amount in prior Item report period report period 1. Revenue 3,526,374,960.00 3,860,559,050.00 Including: Operating income 3,526,374,960.00 3,860,559,050.00 Interest income Earned premium Handling fees and commission income 2. Total operating costs 2,618,215,214.00 2,904,626,278.00 Including: Operating costs 1,284,574,048.00 1,369,522,369.00 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 185,609,756.00 210,534,976.00 Selling expenses 907,316,128.00 1,068,402,994.00 Administrative expenses 219,370,542.00 226,147,745.00 Research and development expenditure 3,855,990.00 5,067,509.00 Financial expenses 17,488,750.00 24,950,685.00 Including: Interest expenses 19,338,175.00 27,398,639.00 Interest income 10,195,663.00 9,193,030.00 Plus:Other income 69,007,365.00 66,841,126.00 Investment profit (loss is listed with "-") -128,956.00 Including: Investment profit for joint-run business and -959,797.00 joint venture Termination of recognized income of financial assets measured at amortized cost (loss is listed with "-") Exchange income (loss is listed with "-") Net exposure hedging income (Loss islisted with “-”) Fair value charge profit (loss is listed with "-") Loss of credit impairment(loss is listed with "-") -2,183,171.00 Loss for impairment of assets(loss is listed with "-") 1,691,320.00 4,199,837.00 Assets disposal income (loss is listed with "-") -166,664.00 -76,376.00 3. Operating profit (loss is listed with "-") 976,379,640.00 1,026,897,359.00 Plus: Non-operating income 6,243,601.00 4,781,728.00 Minus: Non-operating expenditure 891,004.00 1,831,411.00 4. Total profits (total loss is listed with "-") 981,732,237.00 1,029,847,676.00 Minus: Income taxes 253,955,367.00 259,949,041.00 5. Net profit (net loss is listed with "-") 727,776,870.00 769,898,635.00 (一)Classification by continuous operation 1.Net profit from continuous operation(net loss is listed with "-") 20 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 2.Net profit from terminational operation(net loss is listed with "-") (二)Classification by ownership 1.Net profits attribute to equity holders of the company 728,961,623.00 769,753,655.00 2. Minority interests -1,184,753.00 144,980.00 6. Net value of other comprehensive income after tax -21,451,376.00 8,630,710.00 6.1 Net value of other comprehensive income after tax of holding -19,854,806.00 7,450,860.00 company's owners 6.1.1 Other comprehensive income that will not be classified into the profit and loss 6.1.1.1 Changes of the defined benefit plans that re-measured 6.1.1.2 Other comprehensive income under equity method that cannot be transfer to gain/loss 6.1.1.3 Change of fair value of investment in other equity instrument 6.1.1.4 Fair value change of enterprise's credit risk 6.1.1.5 Other 6.1.2 Other comprehensive income that will be -19,854,806.00 7,450,860.00 classified into the profit and loss 6.1.2.1 Other comprehensive income under equity method that can transfer to gain/loss 6.1.2.2 Change of fair value of other debt investment 6.1.2.3 gain/loss of fair value changes for available-for-sale financial assets 6.1.2.4 Amount of financial assets re-classify to other comprehensive income 6.1.2.5 Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.1.2.6 Credit impairment provision for other debt investment 6.1.2.7 Cash flow hedging reserve 6.1.2.8 Translation differences arising on translation of foreign -19,854,806.00 7,450,860.00 currency financial statements 6.1.2.9 Other 6.2 Net value of other comprehensive income after tax -1,596,570.00 1,179,850.00 of minority shareholders 7.Total comprehensive Income 706,325,494.00 778,529,345.00 Total comprehensive income of holding company 709,106,817.00 777,204,515.00 Total comprehensive income of minority shareholders -2,781,323.00 1,324,830.00 8. Earnings per share 8.1 Basic earnings per share 1.06 1.12 8.2 Diluted earnings per share 1.06 1.12 During this report period, the issue relates to company consolidation under common control, consolidated party completes net profit amount of CNY 0 before being consolidated, and consolidated party completes net profit amount of CNY 0 in the same period of last year. Legal representative: Zhou Hongjiang; Person in charge of accounting: Jiang Jianxun; Person in charge of accounting organ: Guo Cuimei 21 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 6) Profit statement of parent company from the beginning of the year to the end of the report period Unit: CNY Amount in this Amount in prior Item report period report period 1. Revenue 552,839,771.00 594,203,694.00 Minus: Operating costs 493,642,250.00 516,569,381.00 Taxes and surcharges 23,586,763.00 33,472,468.00 Selling expenses Administrative expenses 55,928,450.00 61,014,018.00 Research and development expenditure 611,084.00 860,671.00 Financial expenses -4,204,810.00 -8,978,222.00 Including: Interest expenses -514,245.00 13,580,944.00 Interest income 5,073,326.00 28,087,271.00 Plus: Other income 2,574,791.00 3,137,204.00 Investment profit (loss is listed with "-") 319,221,755.00 392,259,576.00 Including: Investment profit for joint-run business and joint venture Termination of recognized income of financial assets measured at amortized cost (loss is listed with "-") Net exposure hedging income (Loss islisted with “-”) Fair value charge profit (loss is listed with "-") Loss of credit impairment (loss is listed with "-") Loss for impairment of assets (loss is listed with "-") Assets disposal income (loss is listed with "-") 21,901.00 74,472.00 2. Operating profit (loss is listed with "-") 305,094,481.00 386,736,630.00 Plus: Non-operating income 825,767.00 868,923.00 Minus: Non-operating expenses 845,797.00 300,000.00 3. Total profits (total loss is listed with "-") 305,074,451.00 387,305,553.00 Minus: Income tax -908,748.00 615,864.00 4. Net profit (net loss is listed with "-") 305,983,199.00 386,689,689.00 1.Net profit from continuous operation(net loss is listed with "-") 305,983,199.00 386,689,689.00 2.Net profit from terminational operation(net loss is listed with "- ") 5. Net value of other comprehensive income after tax 5.1 Other comprehensive income that will not be classified into the profit and loss 5.1.1 Remeasure the changes in net assets or liabilities of defined benefit plans 22 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 5.1.2 Shares of other comprehensive income from investee which cannot be reclassified into profit and loss under the equity method 5.1.3 Change of fair value of investment in other equity instrument 5.1.4 Fair value change of enterprise's credit risk 5.1.5 Other 5.2 Other comprehensive income that will be classified into the profit and loss 5.2.1 Other comprehensive income under equity method that can transfer to gain/loss 5.2.2 Change of fair value of other debt investment 5.2.3 gain/loss of fair value changes for available-for-sale financial assets 5.2.4 Amount of financial assets re-classify to other comprehensive income 5.2.5 Gain/loss of held-to-maturity investments that re-classify to ailable-for-sale financial asset 5.2.6 Credit impairment provision for other debt investmen 5.2.7 Cash flow hedging reserve 5.2.8 Translation differences arising on translation of foreign currency financial statements 5.2.9 Other 6. Total comprehensive income 305,983,199.00 386,689,689.00 7. Earnings per share 7.1 Basic earnings per share 0.45 0.56 7.2 Diluted earnings per share 0.45 0.56 7) Consolidated cash flow statement from the beginning of the year to the end of the report period Unit: CNY Amount in this report Amount in prior report Item period period 1. Cash flows from operating activities: Cash received from sales of goods and rending of 3,383,591,970.00 3,758,220,631.00 services Net increase in customer and interbank deposits Net increase in borrowings from central bank 23 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. 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 of deposit of insured and investment fund Net increase in disposing of financial assets that measured by fair value with changes 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 29,589,937.00 44,108,497.00 Other cash received related to operating activities 73,784,588.00 72,133,583.00 Sub-total of cash inflows of operating activities 3,486,966,495.00 3,874,462,711.00 Cash paid for goods and services 1,215,074,533.00 1,148,035,339.00 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 371,205,468.00 382,654,609.00 Cash paid for taxes and expenses 674,162,579.00 980,026,533.00 Other cash paid related to operating activities 581,192,202.00 586,905,436.00 Sub-total of cash outflows of operating activities 2,841,634,782.00 3,097,621,917.00 Net cash flow from operating activities 645,331,713.00 776,840,794.00 2. Cash flow from investing activities: Cash received from return of investment Cash received from return of fixed deposit 174,597,650.00 315,000,000.00 Cash received from obtaining investment profit Cash received from interest income 1,199,968.00 2,663,349.00 Cash received from disposal of fixed assets, 197,599.00 679,061.00 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 Sub-total of cash inflows of investment activities 175,995,217.00 318,342,410.00 Cash paid to acquire fixed assets, intangible asset 201,251,495.00 194,381,509.00 and other long-term assets Cash for investments 401,647.00 24 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Cash paid to acquire fixed deposit 113,718,193.00 340,000,000.00 Net increase in hypothecated loan Net cash paid to acquire branch and other business 105,834,656.00 unit Other cash paid related to investment activities 170,752.00 Subtotal of cash outflows of investment activities 315,542,087.00 640,216,165.00 Net cash flow from investing activities -139,546,870.00 -321,873,755.00 3. Cash flow from financing activities Cash received from acquiring investment Cash received from acquiring minority shareholders' investment by branch Cash received from acquiring loans 684,581,027.00 693,422,472.00 Other cash received related to financing activities 23,521,431.00 Sub-total cash inflows of financing activities 684,581,027.00 716,943,903.00 Cash paid to repay debts 697,660,583.00 697,658,527.00 Cash paid to distribute dividend, profit or pay 437,742,354.00 370,522,623.00 interest Dividend and profit paid to minority shareholders by branch Other cash paid related to financing activities 20,000,000.00 Sub-total of cash outflows of financing activities 1,135,402,937.00 1,088,181,150.00 Net cash flow from financing activities -450,821,910.00 -371,237,247.00 4. Influences of exchange rate fluctuation on cash and -308,084.00 -1,776,998.00 cash equivalents 5. Net Increase of cash and cash equivalents 54,654,849.00 81,952,794.00 Plus: balance at the beginning of the period of cash 1,206,860,334.00 1,180,889,274.00 and cash equivalents 6. Balance at the end of the period of cash and cash 1,261,515,183.00 1,262,842,068.00 equivalents 8) Cash flow statement of parent company from the beginning of the year to the end of the report period Unit: CNY Amount in this report Amount in prior report Item period period 1. Cash flows from operating activities: 25 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Cash received from sales of goods and rending of 442,359,311.00 500,155,064.00 services Tax refund received Other cash received related to operating activities 44,030,652.00 117,304,238.00 Sub-total of cash inflows of operating activities 486,389,963.00 617,459,302.00 Cash paid for goods and services 332,017,753.00 324,043,336.00 Cash paid to and on behalf of employees 57,697,044.00 61,318,451.00 Cash paid for taxes and expenses 34,602,597.00 56,041,351.00 Other cash paid related to operating activities 236,084,524.00 35,822,969.00 Sub-total of cash outflows of operating activities 660,401,918.00 477,226,107.00 Net cash flow from operating activities -174,011,955.00 140,233,195.00 2. Cash flow from investing activities: Cash received from return of investment Cash received from return of fixed deposit 110,000,000.00 305,000,000.00 Cash received from obtaining investment profit 815,117,830.00 797,517,435.00 Cash received from interest income 715,111.00 2,342,015.00 Cash received from disposal of fixed assets, 29,815.00 538,055.00 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 Sub-total of cash inflows of investment activities 925,862,756.00 1,105,397,505.00 Cash paid to acquire fixed assets, intangible asset 14,223,638.00 15,121,500.00 and other long-term assets Cash for investments 265,479,443.00 107,194,420.00 Cash paid to acquire fixed deposit 105,238,750.00 340,000,000.00 Net cash paid to acquire branch and other busines unit Other cash paid related to investment activities Subtotal of cash outflows of investment activities 384,941,831.00 462,315,920.00 Net cash flow from investing activities 540,920,925.00 643,081,585.00 3. Cash flow from financing activities Cash received from acquiring investment Cash received from acquiring loans 200,000,000.00 Other cash received related to financing activities Sub-total cash inflows of financing activities 200,000,000.00 Cash paid to repay debts 600,000,000.00 Cash paid to distribute dividend, profit or pay 416,717,150.00 356,615,750.00 interest Other cash paid related to financing activities Sub-total of cash outflows of financing activities 416,717,150.00 956,615,750.00 Net cash flow from financing activities -416,717,150.00 -756,615,750.00 4. Influences of exchange rate fluctuation on cash and cash equivalents 5. Net Increase of cash and cash equivalents -49,808,180.00 26,699,030.00 26 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Plus: balance at the beginning of the period of 532,384,882.00 493,568,866.00 cash and cash equivalents 6. Balance at the end of the period of cash and cash 482,576,702.00 520,267,896.00 equivalents 2. Explanation for adjustment in financial statements 1) The situation of adjusting related items in financial statements at the beginning of 2019 owing to the implementation of new financial instruments standard, new revenue standard or new lease standard since 2019 √Available □Not available Consolidated balance sheet Unit: CNY Item December 31st, 2018 January 1st, 2019 Adjusted amount Current Assets: Monetary fund 1,475,700,477.00 1,475,700,477.00 petty cash Lending funds Transactional financial assets Financial assets measured by fair value with changes recorded into current profits and losses Derivative financial assets Notes receivable 288,667,988.00 -288,667,988.00 Accounts receivable 242,153,083.00 237,781,161.00 -4,371,922.00 Receivables Financing Accounts prepaid 4,219,949.00 4,219,949.00 Premiums receivable Reinsurance accounts receivable Receivable reserves for reinsurance contract Other receivables 22,636,086.00 22,636,086.00 Including: Interest receivable 1,332,681.00 1,332,681.00 Dividends receivable Buying back the sale of financial assets Inventory 2,724,591,457.00 2,724,591,457.00 Contract assets Assets classified as holding for sale Non-current assets expire in one year Other current assets 258,676,396.00 258,676,396.00 Total Current Assets 5,016,645,436.00 5,016,645,436.00 Non-current Assets: Offering loans and imprest Debt investment 27 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Financial assets for sale 467,251.00 -467,251.00 Other debt investment Held-to-maturity investment Long-term account receivable Long-term equity investment Investment in other equity instrument Other non-current financial assets 467,251.00 467,251.00 Real estate for investment 31,572,489.00 31,572,489.00 Fixed assets 5,749,731,667.00 5,749,731,667.00 Construction in progress 759,296,591.00 759,296,591.00 Biological assets for production 209,266,373.00 209,266,373.00 Oil and gas assets Right-of-use assets Intangible assets 655,473,459.00 655,473,459.00 Development expenditure Goodwill 165,199,111.00 165,199,111.00 Long-term deferred expenses 244,640,416.00 244,640,416.00 Deferred tax assets 285,436,259.00 286,529,239.00 1,092,980.00 Other non-current assets Total Non-Current Assets 8,101,083,616.00 8,101,083,616.00 Total Assets 13,117,729,052.00 13,117,729,052.00 Current liabilities: Short-term loan 688,002,410.00 688,002,410.00 Borrowings from the Central Bank Borrowing funds Transactional financial liability Financial liabilities measured by fair value with changes recorded into current profits and losses Derivative financial liabilities Notes payable Accounts payable 713,572,881.00 713,572,881.00 Advances from customers 226,075,244.00 226,075,244.00 Sales/buyback financial assets Customer and interbank deposits Acting trading securities Acting underwriting securities Wage payable 212,304,217.00 212,304,217.00 Tax payable 128,912,790.00 128,912,790.00 Other accounts payable 608,479,890.00 608,479,890.00 Including: Interest payable 712,826.00 712,826.00 Dividend payable Payable handling fees and commission Dividend payable for reinsurance Contract liabilities Liabilities classified as holding for sale 28 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Non-current liabilities expire in one year 152,940,788.00 152,940,788.00 Other current liabilities 15,860,254.00 15,860,254.00 Total Current Liabilities 2,746,148,474.00 2,746,148,474.00 Non-Current Liabilities: Insurance contract reserve Long-term borrowings 156,480,662.00 156,480,662.00 Bonds payable Preferred Stock Perpetual capital securities Lease liability Long-term accounts payable 225,000,000.00 225,000,000.00 Long-term accrued payroll Estimated liabilities Deferred income 70,367,039.00 70,367,039.00 Deferred tax liabilities 22,010,647.00 22,010,647.00 Other non-current liabilities 7,234,853.00 7,234,853.00 Total non-current liabilities 481,093,201.00 481,093,201.00 Total liabilities 3,227,241,675.00 3,227,241,675.00 Owner’s equity (or shareholders’ equity): Capital stock 685,464,000.00 685,464,000.00 Other equity instruments Preferred Stock Perpetual capital securities Capital reserve 565,955,441.00 565,955,441.00 Minus: treasury stock Other comprehensive income 2,965,377.00 2,965,377.00 Special reserves Surplus reserve 342,732,000.00 342,732,000.00 General risk preparation Undistributed profits 8,008,982,547.00 8,005,703,605.00 -3,278,942.00 Total owner's equity attributable to the 9,606,099,365.00 9,606,099,365.00 holding company Minority interests 284,388,012.00 284,388,012.00 Total owner's equity 9,890,487,377.00 9,602,820,423.00 -3,278,942.00 Total liabilities and owner's equity 13,117,729,052.00 13,117,729,052.00 Explanation for adjustment Unit: CNY Item Book value based on Influence of Influence of change Book value based on original standard new financial in reporting mode of new standard December 31st, 2018 instruments other financial January 1st, 2019 standard statements Notes receivable & 530,821,071 -530,821,071 Accounts receivable Notes receivable -288,667,988 288,667,988 Accounts receivable -4,371,922 242,153,083 237,781,161 Receivables Financing 288,667,988 288,667,988 Financial assets for 467,251 -467,251 sale Other non-current 467,251 467,251 financial assets Deferred tax assets 285,436,259 1,092,980 286,529,239 Total 816,724,581 -3,278,942 813,445,639 29 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Balance sheet of parent company Unit: CNY st st Item December 31 , 2018 January 1 , 2019 Adjusted amount Current Assets: Monetary fund 624,588,809.00 624,588,809.00 Transactional financial assets Financial assets measured by fair value with changes recorded into current profits and losses Derivative financial assets Notes receivable 39,885,254.00 -39,885,254.00 Accounts receivable 1,447,973.00 1,447,973.00 Receivables Financing 39,885,254.00 39,885,254.00 Accounts prepaid 227.00 227.00 Other receivables 1,025,643,356.00 1,025,643,356.00 Including: Interest receivable 254,088.00 254,088.00 Dividends receivable 500,000,000.00 500,000,000.00 Inventory 385,154,740.00 385,154,740.00 Contract assets Assets classified as holding for sale Non-current assets expire in one year Other current assets 24,704,844.00 24,704,844.00 Total Current Assets 2,101,425,203.00 2,101,425,203.00 Non-current Assets: Debt investment Financial assets for sale Other debt investment Held-to-maturity investment Long-term account receivable Long-term equity investment 7,420,803,069.00 7,420,803,069.00 Investment in other equity instrument Other non-current financial assets Real estate for investment 31,572,489.00 31,572,489.00 Fixed assets 265,311,274.00 265,311,274.00 Construction in progress 6,311,701.00 6,311,701.00 30 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Biological assets for production 125,002,793.00 125,002,793.00 Oil and gas assets Right-of-use assets Intangible assets 67,244,066.00 67,244,066.00 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 24,194,967.00 24,194,967.00 Other non-current assets 972,700,000.00 972,700,000.00 Total Non-Current Assets 8,913,140,359.00 8,913,140,359.00 Total Assets 11,014,565,562.00 11,014,565,562.00 Current liabilities: Short-term loan 150,000,000.00 150,000,000.00 Transactional financial liability Financial liabilities measured by fair value with changes recorded into current profits and losses Derivative financial liabilities Notes payable Accounts payable 132,704,304.00 132,704,304.00 Advances from customers Contract liabilities Wage payable 72,345,179.00 72,345,179.00 Tax payable 13,111,431.00 13,111,431.00 Other accounts payable 607,974,519.00 607,974,519.00 Including: Interest payable 181,250.00 181,250.00 Dividend payable Liabilities classified as holding for sale Non-current liabilities expire in one year Other current liabilities 3,433,054.00 3,433,054.00 Total Current Liabilities 979,568,487.00 979,568,487.00 Non-Current Liabilities: Long-term borrowings Bonds payable Preferred Stock Perpetual capital securities 31 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. Lease liability Long-term accounts payable Long-term accrued payroll Estimated liabilities Deferred income 8,910,918.00 8,910,918.00 Deferred tax liabilities Other non-current liabilities 2,710,575.00 2,710,575.00 Total non-current liabilities 11,621,493.00 11,621,493.00 Total liabilities 991,189,980.00 991,189,980.00 Owner’s equity (or shareholders’ equity): Capital stock 685,464,000.00 685,464,000.00 Other equity instruments Preferred Stock Perpetual capital securities Capital reserve 557,222,454.00 557,222,454.00 Minus: treasury stock Other comprehensive income Special reserves Surplus reserve 342,732,000.00 342,732,000.00 Undistributed profits 8,437,957,128.00 8,437,957,128.00 Total owner's equity 10,023,375,582.00 10,023,375,582.00 Total liabilities and owner's equity 11,014,565,562.00 11,014,565,562.00 Explanation for adjustment Unit: CNY Item Book value based on Influence of Influence of change Book value based on original standard new financial in reporting mode of new standard December 31st, 2018 instruments other financial January 1st, 2019 standard statements Notes receivable & 41,333,227 -41,333,227 Accounts receivable Notes receivable -39,885,254 39,885,254 Accounts receivable 1,447,973 1,447,973 Receivables Financing 39,885,254 39,885,254 Other receivables 1,025,643,356 1,025,643,356 Total 1,066,976,583 1,066,976,583 2) Explanation for retroactive adjustment in comparable data in prior report period owing to the implementation of new financial instruments standard or new lease standard since 2019 32 2019 the Third Quarter Report of Yantai Changyu Pioneer Wine Co. Ltd. □Available √ Not available 3. Audit report Whether the third quarter report has been audited. □Yes √ No The third quarter report has not been audited. Yantai Changyu Pioneer Wine Co., Ltd. Board of Directors October28th, 2019 33