2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
Stock Code: 000869， 200869 Stock Abbreviation: Changyu A， Changyu B Announcement No.: 2021-Final 01
Yantai Changyu Pioneer Wine Co., Ltd.
2020 Annual Report Abstract
1. Important Notice
This Annual Report Abstract comes from the whole contents of annual report. If investors desire to
comprehensively understand the Company’s operating results, financial situation and future
development plan, please read the Annual Report on the media specified by the China Securities
Regulatory Commission.
All directors have personally attended the meeting for deliberating the annual report.
Non-standard audit opinion notice
□Available Not available
The preliminary scheme of the report period’s ordinary share profit distribution or increasing equity
with reserve deliberated by the board of the directors
Available □Not available
Whether to increase equity with reserve
□Yes No
The Company’s preliminary scheme of profit distribution deliberated and passed by the board of
directors this time is shown as following: Based on the Company’s total 685,464,000 shares, we plan
to pay CNY4 (including tax) in cash as dividends for every 10 shares to all shareholders and send 0
bonus share (including tax). Capital reserve will not be transferred to equity.
The draft plan of preferred share profit distribution during the report period deliberated and passed
by the board of directors
□Available Not available
2. Basic information of the Company
(1) Brief introduction of the Company
Changyu A, 000869,
Abbreviation of Shares: Code number of the Shares
Changyu B 200869
Place of listing of Shares Shenzhen Stock Exchange
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
Secretary to the Board of Authorized Representative of
Contact person and information
Directors the Securities Affairs
Name Mr. Jiang Jianxun Mr. Li Tingguo
56 Dama Road, Yantai, 56 Dama Road, Yantai,
Address
Shandong, China Shandong, China
Fax 0086-535-6633639 0086-535-6633639
Tel 0086-535-6602761 0086-535-6633656
E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn
(2) Main businesses during the report period or brief introduction of products
During the report period, the Company’s main businesses are production and operation of wine and
brandy, thus providing domestic and foreign consumers with healthy and fashionable
alcoholic drinks. Compared with earlier stage, there are no significant changes happened to the
Company’s main businesses.
The wine industry that the Company involved in is still in growth stage. Although being affected by
many factors for the short-term, the competition in the market is fierce and the wine consumption
temporarily declines. However, seen from the long term, the whole domestic wine market is on the
rising trend. The Company is at the forefront in the domestic wine market.
The Company’s products were divided into two series: wine and brandy. For wine, main brands
included Changyu, Noble Dragon, AFIP, Changyu Moser XV, Golden Ice Valley, Zenithwirl,
Vermouth, Rena, Baron Balboa, J.LORMIN, ATRIO, Kilikanoon and IWCC and so on. For Brandy,
main brands included Koya, Mminni, Pagese, Roullet Fransac and so on.
(3) Key accounting data and financial indicators
①Key accounting data and financial indicators in recent three years
Whether the Company needs to retrospectively adjust or restate the accounting data of previous fiscal
years.
Yes □No
Reason for retrospectively adjusting or restating the accounting data
Amalgamation of enterprise under the same control
Unit: CNY
More or less than
2019 2018
Last year (%)
2020
Before After Before After
After adjustment
adjustment adjustment adjustment adjustment
Operating revenue 3,395,402,001 5,031,011,489 5,074,025,899 -33.08% 5,142,244,740 5,142,244,740
Net profit attributed to 470,860,587 1,129,735,749 1,141,367,296 -58.75% 1,042,632,929 1,042,632,929
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
shareholders of the listed
company
Net profit attributed to
shareholders of the listed
company after deducting 397,655,187 892,075,931 892,496,644 -55.44% 965,426,238 965,426,238
non-recurring profits and
losses
Net cash flows from
505,146,673 837,838,024 848,852,360 -40.49% 975,978,746 975,978,746
operating activities
Basic earnings per share 0.69 1.65 1.67 -58.68% 1.52 1.52
Diluted earnings per
0.69 1.65 1.67 -58.68% 1.52 1.52
share
Weighted average for
4.57% 11.30% 11.40% -6.83% 11.23% 11.23%
earning rate of net assets
More or less than
st December 31st, 2019 December 31st, 2018
December 31 , Last year (%)
2020 Before After Before After
After adjustment
adjustment adjustment adjustment adjustment
Total assets 13,102,481,541 13,647,932,568 13,764,855,252 -4.81% 13,117,729,052 13,117,729,052
Net Assets attributed to
shareholders of the listed 10,267,832,644 10,308,910,198 10,402,248,821 -1.29% 9,606,099,365 9,606,099,365
company
②Key accounting data by quarter
Unit: CNY
st nd rd th
1 Quarter 2 Quarter 3 Quarter 4 Quarter
Operating revenue 805,715,048 612,833,499 774,191,143 1,202,662,311
Net profit attributed to
shareholders of the 234,499,910 84,140,165 85,120,851 67,099,661
listed company
Net profit attributed to
shareholders of the
listed company after 225,980,141 40,786,708 73,406,867 57,481,471
deducting non-recurring
profits and losses
Net cash flows from
-118,493,699 101,974,947 268,955,826 252,709,599
operating activities
Whether there are significant differences between above-mentioned financial indicators or their sum
and the related financial indicators in the quarterly report and semi-annual report disclosed by the
Company.
□Yes No
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
(4) Capital stock and shareholders’ situation
① Number of ordinary shareholder and preferred shareholder recovering voting power, and situation of shares held by top ten shareholders
Unit: share
Total number of shareholders by Total number of preferred Total number of preferred shareholder recovering
Total shareholders in the
49,043 the end of last month before the 53,529 shareholder recovering voting 0 voting power by the end of last month before the 0
report period
disclosure day of the annual report power by the end of report period disclosure day of the annual report
Shareholders holding more than 5% or the top 10 shareholders holding situation
Pledged or frozen
Name of Shareholders Character of shareholders Percentage (%) Amount of holding shares Number of restricted shares
Share status Amount
YANTAI CHANGYU GROUP CO., LTD. Domestic non-state legal person 50.40% 345,473,856 0 - -
GAOLING FUND, L.P. Foreign legal person 3.08% 21,090,219 0 - -
CHINA SECURITIES FINANCE CORP State legal person 2.08% 14,275,705 0 - -
BBH BOS S/A FIDELITY FD - CHINA FOCUS
Foreign legal person 1.77% 12,160,726 0 - -
FD
SHENWAN HONGYUAN SECURITIES
Foreign legal person 1.20% 8,231,733 0 - -
(HONGKONG) LIMITED
FIDELITY PURITAN TRUST: FIDELITY
Foreign legal person 0.93% 6,350,762 0 - -
SERIES INTRINSIC OPPORTUNITIES FUND
GUOTAI JUNAN SECURITIES (HONGKONG)
Foreign legal person 0.80% 5,481,945 0 - -
LIMITED
Haitong International Securities Company
Foreign legal person 0.69% 4,741,787 0 - -
Limited-Account Client
CENTRAL HUIJIN ASSET MANAGEMENT
State legal person 0.69% 4,761,200 0 - -
LIMITED
VANGUARD EMERGING MARKETS STOCK Foreign legal person 0.56% 3,808,449 0 - -
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
INDEX FUND
Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant
The explanation for the associated relationship and accordant action action relationship with the other 9 listed shareholders, while the relationship among the other shareholders is
unknown.
Explanation for the top 10 shareholders who involved in financing activities and
The top 10 shareholders do not involve in financing activities and stock trade business.
stock trading business (if have)
② Number of preferred shareholder and situation of preferred shares held by top ten preferred shareholders
□Available Not available
There are no shares held by preferred shareholders during the report period.
③ Introduction for property right and control relations between the Company and its actual controllers
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
(5) Company Bonds
Whether or not the Company has the corporation bonds issued in public, listed in the stock exchange,
not due on the annual report’s authorized issue date or failed to pay in full on the due date.
No.
3. Management Discussion and Analysis
(1) Brief introduction of operation situation during the report period
In 2020, influenced by many factors, such as the slowdown of domestic economic growth and the
COVID-19 epidemic, the competition in domestic wine market was very strong. The sales volumes
of both imported wine and domestic wine continued the decreasing trend. Most wine production
enterprises got into trouble and the Profitability had a significant decrease. The domestic wine
industry was generally on the verge of loss. Facing quite a lot of external disadvantages, the
Company persisted in taking the market as the center, adhered to the development strategy of “Focus
on middle-and-high level, Focus on high quality, Focus on big product” and the marketing
philosophy of “obtaining growth from the terminal and nurturing consumers”, and made the most of
advantages including long history, strong capital strength, high brand awareness, widespread
marketing network and abundant products and o on to strive to promote product sales, bearing the
severe market test, maintaining the industry leadership, further widening the gap with major
domestic competitors and realizing operating revenue of CNY3,395.4million with a year-on-year
decrease of 33.08% and net profit of CNY470.86million belonging to the parent company’s
shareholders with a year-on-year decrease of 58.75%.
① Production and inventory
Year-on-year increase
Sector Project Unit 2020 2019
or decrease (%)
Sales volume Ton 93,501 127,129 -26.45%
Alcohol and alcoholic
beverage industry Yield Ton 93,990 129,104 -27.20%
Inventory Ton 24,925 21,007 18.65%
② Composition of operating revenue
Unit: CNY
2020 2019
Year-on-year
Proportion Proportion
increase or
Amount in operating Amount in operating
decrease (%)
revenue revenue
Total operating revenue 3,395,402,001 100% 5,074,025,899 100% -33.08%
Sector-classified
Sector of liquor and 3,395,402,001 100% 5,074,025,899 100% -33.08%
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
alcoholic beverage
Product-classified
Wine 2,424,359,348 71.40% 3,855,645,607 75.99% -37.12%
Brandy 877,428,035 25.84% 1,073,184,805 21.15% -18.24%
Tourism 69,589,233 2.05% 109,037,225 2.15% -36.18%
Others 24,025,385 0.71% 36,158,262 0.71% -33.55%
③ Composition of operating costs
Classification of sector and product
Unit: CNY
2020 2019 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending
731,348,214 49.42% 933,730,318 50.75% -1.33%
liquor
Liquor
Packing
and 457,572,889 30.92% 626,670,556 34.06% -3.14%
material
alcoholic
Wages 56,969,384 3.85% 65,607,418 3.57% 0.28%
beverage
Manufacturing
234,032,840 15.81% 213,977,095 11.62% 4.19%
expenses
Unit: CNY
2020 2019 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 540,591,702 49.07% 703,625,279 50.77% -1.70%
Packing
326,909,741 29.67% 459,299,602 33.14% -3.47%
material
Wine
Wages 48,585,743 4.41% 56,725,667 4.09% 0.32%
Manufacturing
185,657,867 16.85% 166,276,568 12.00% 4.85%
expenses
Blending liquor 190,756,512 52.20% 230,056,797 52.66% -0.46%
Packing
130,663,148 35.76% 167,488,596 38.34% -2.58%
material
Brandy
Wages 8,383,641 2.29% 8,881,752 2.03% 0.26%
Manufacturing
35,597,765 9.75% 30,467,170 6.97% 2.78%
cost
④ Review and summary of the process of the Company’s early-disclosed development strategy and
business plan during the report period
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
During the report period, the domestic wine industry was hit hard, the wine consumption market was
small and disorderly, offline channel suffered serious setbacks, and online channel was not optimistic.
The Company realized the operating revenue of CNY3,395.4million with an decrease of 33.08%
compared with last year, lower than the target fixed at the beginning of the year of realizing
operating revenue no less than CNY3.7billion, and realized the net profit of CNY470.86million
belonging to the parent company’s shareholders with an decrease of 58.75% compared with last year.
The main works during the report period were shown as followed:
Firstly, the Company coordinated epidemic prevention work and operation work. After the outbreak
of COVID-19 epidemic in China, the Company took the prevention and control of the epidemic as a
very important task, quickly established a team for epidemic prevention and control, linked up and
down and organized multiple meetings to improve and implement the prevention and control work
plan. After the domestic epidemic got relieved, in accordance with the requirements of relevant
government departments, the Company actively organized the production resumption, insisted the
normalized epidemic management work, successfully achieved “zero infection” and “zero accidents”
and better balanced epidemic prevention and control work and operation work.
Secondly, the Company actively adjusted market strategies. The Company vigorously consolidated
the sales system divided based on different alcoholic products varieties and continued promoting the
system construction for domestic wine, brandy and imported wine. For domestic wine, at the
beginning of the year, the Company actively coped the challenge of the epidemic, successively
launched many activities, including carrying out non-contact distribution, recruiting community
partners, holding “Cloud Drinking” tasting activity and encouraging all employees to conduct short
video marketing activity and so on. The Company especially adopted a quota system to Noble
Dragon in order to further regulate the market. For Brandy, the Company fully implemented the
“Three Focuses” strategy, steadily improving the product structure and further increasing the
proportion of mid-to-high-end products, focused on the marketing and promotion work, such as
tasting activities and chateau experience etc, and constantly improved the format of tasting activities.
For imported wine, the Company adhered to the positioning of Yantai Changyu Pioneer International
Wine Co., Ltd. as a “brand operating company”, which further increased the proportion of overseas
acquired brands. Besides these, the Company improved the brand manager system to further clarify
the rights and responsibilities of brand managers, improved the assessment method to sales
personnel to strive to eliminate system defects and increase the enthusiasm of sales personnel,
promoted the integration of regional logistics transshipment centers and reformed the distribution
system to improve distribution efficiency and reduce logistics costs. The Company also accelerated
the pace of digital transformation, completed the code for each bottle of new product, launched
“Changyu Member Applet”, “Changyu Smart Retail Mall” and blockchain digital certification and
so on, intensified online sales and strengthened cooperation with big online enterprises to achieve a
new breakthrough in online sales.
Thirdly, The Company insisted improving product quality. The Company further intensified the
brand winemaker system, strengthened the responsibility of brand winemakers for internal quality of
corresponding brand products, and enhanced product competitiveness. Great progress was made in
the development of new products. Xinjiang Chateau passed the organic chateau certification.
Ningxia Chateau, Beijing Chateau, Xinjiang Chateau and Yantai Chateau completed product
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
upgrades. J.LORMIN and Vermouth launched new products. Regionally customized products of
Castel, Noble Dragon, low-end wines and brandy and so on were launched. The quality of the
Company’s domestic chateau wines were recognized by international authorities. This year, it won
99 medals in influential international competitions, including 5 grand gold medals and 35 gold
medals. The new red and white Vermouth won the gold medal in 2020 ISGC. Noble Dragon won the
champion in the “The World’s Best Selling Wine Brands Blind Tasting”. Golden Ice Valley icewine
scored 93 points in the “Blind Tasting The World’s Best Icewines”. AFIP chateau wine ranked Top 3
in Blind-tasting The Stars of The Wine World. Moser chateau wine got 93 scores in
www.erobertparker.com. In addition, overseas acquired chateau products also received many awards.
For example, Kilikanoon wine won 13 gold medals in Mundus Vini, was awarded the “Australian
Winery of the Year” seven times, and was awarded the “Australian Best Producer” for the fourth
consecutive year; IWCC obtained China’s organic certification and achieved the “Grand Slam” of
organic certification in six major countries containing United States, European Union, Japan,
Switzerland, UK and China, whose customized wine was selected as the celebration gift at the
Celebrations on the 50th anniversary of the establishment of diplomatic ties between China and Chile
held on December 11th.
Fourthly, the Company strengthened financial management and audit supervision. The Company
made full use of the centralized capital management and control mechanism, which improved the
efficiency of capital use and reduced capital occupation and financing costs. Utilizing the favorable
factors of exchange rate changes, relevant departments collaborated as a whole and reasonably grasp
the timing of import and foreign exchange purchasing, which saved the expenditure of foreign
exchange purchasing. The Company also strengthened the audit in the authenticity of financial
revenues and expenditures, and conducted a comprehensive audit in the profit authenticity of main
operating subsidiaries, in the economic responsibilities of outgoing middle-and-high-level personnel
and in the major technological transformation projects.
(2) Whether there are significant changes in the main business during the reporting period
□Yes No
(3) The cases of industry, product or area accounting for over 10% in the Company’s
operating revenue or operating profit
Available □Not available
Unit: CNY
Year-on-year Year-on-year Year-on-year
Operating Gross increase or increase or increase or
Operating cost
revenue margin decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross profit rate
Sector-classified
Sector of liquor
and alcoholic 3,395,402,001 1,503,877,407 55.71% -33.08% -19.91% -7.29%
beverage
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
Product-classified
Wine 2,424,359,348 1,101,745,053 54.56% -37.12% -20.50% -9.50%
Brandy 877,428,035 365,401,066 58.36% -18.24% -16.36% -0.93%
Tourism 69,589,233 23,954,081 65.58% -36.18% -36.42% 0.13%
Others 24,025,385 12,777,207 46.82% -33.55% -25.56% -5.71%
Area-classified
Domestic 2,889,121,152 1,223,020,007 57.67% -36.16% -19.20% -8.88%
Abroad 506,280,849 280,857,400 44.53% -7.71% -22.84% 10.87%
(4) Whether there is seasonality or periodicity operating features required special attention
□Yes No
(5) Explanation for significant changes in operation revenue, operating cost, total net profit or
constitution attributable to the ordinary shareholders of the listed company compared with
last report period
Available Not available
Compared with 2019, the operating income, operating costs and net profit attributable to
shareholders of listed company decreased by 33.08%, 19.91% and 58.75% respectively, mainly due
to the decline in sales affected by the epidemic.
(6) Condition of facing delisting situation
□Available Not available
(7) Items related to financial report
①Compared with the last year’s financial report, explanation for the changes of accounting
policy, accounting estimation and accounting method
Available □Not available
On July 5th, 2017, the Ministry of Finance issued the Notice on Amendment and Issuance of
Accounting Standard for Business Enterprises No.14-Revenue (Caikuai [2017] No.22), which
required enterprises simultaneously listing both in domestic and overseas and enterprises that listed
at abroad and adopted International Financial Reporting Standards or Enterprise Accounting
Standards to prepare financial statements shall implement this new accounting policy from January
1st, 2018; other enterprises listing in domestic shall implement this new accounting policy from
January 1st, 2020; non-listed enterprises implementing enterprise accounting standards shall
implement this new accounting policy from January 1 st, 2021. Due to the revision of above
accounting standards, the company needs to adjust the relevant accounting policies originally
adopted accordingly.
According to above-mentioned regulation of relevant standards and notice of Ministry of Finance,
this company will implement the new revenue standard from January 1 st, 2020.
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2020 Annual Report Abstract of Yantai Changyu Pioneer Wine Co., Ltd.
This change of accounting policy is carried out by the Company in accordance with the relevant
regulations and requirements issued by the Ministry of Finance. The accounting policy after change
could objectively and fairly reflect the Company’s financial situation and operating results, in
compliance with relevant laws and regulations and the Company’s actual situation. This change of
accounting policy will not have a significant impact on the Company’s financial status, operating
results and cash flow, nor will there be any damage to the Company and shareholders’ interests.
②The situation explanation for the correction of major accounting errors which need to be
retrospect and restated during the report period
□Available Not available
There is no situation for the correction of major accounting errors which need to be retrospect and
restated.
③ Compared with the last year’s financial report, explanation for the changes of the
consolidated statements scope
Available □Not available
For detailed information about the changes in the scope of consolidated financial statements in this
year, please refer to Note 6: “Change in consolidation scope” in 2020 Annual Report of this
Company.
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
April 28th, 2021
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