YANTAI CHANGYU PIONEER WINE COMPANY
LIMITED
The 1st Quarter Report of 2009
1. Important
1.1 The Board of Directors, board of 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 other facts the omission of which would
make any statement herein misleading.
1.2 No directors or senior managers have any dissidence on the truthfulness, accuracy and
completeness of the information contained in this report.
1.3 All directors attended the Board of Directors’ meeting.
1.4 The 1st quarter report of 2009 has not been audited.
1.5 The chairman of the Board of Directors Mr. Sun Liqiang, the chief accountant Mr. Leng
Bin and the chief of accounting department Mr. Jiang Jianxun assure the truth and
integrity of the financial and accounting statement in this report.2
2. THE BASIC INFORMATION OF THE COMPANY
2.1 Main accountant data and Financial index
Unit: CNY
At the end of the
report period
at the end of last
year
More or less (%)
Total assets 4,347,819,641 4,060,932,580 7.06
owner’s equity (or shareholders’ equity) 2,842,135,148 2,543,633,170 11.74
Capital stock 527,280,000 527,280,000 0.00
Net assets per Share 5.39 4.82 11.83
During the
report period
1st quarter of
last year
More or less (%)
Business income 1,257,455,017 1,264,760,221 -0.58
Net profit 298,501,978 271,637,866 9.89
Net cash flow from operating activities 465,241,339 862,849,632 -46.08
Net cash flow per share from operating
activities
0.88 1.64 -46.34
Basic Earnings per Share 0.57 0.52 9.62
Diluted Earnings per Share 0.57 0.52 9.62
Rate of return of net assets 10.50% 10.86% -0.36
Rate of return of net assets
after deducting irregualr profit and loss
10.49% 10.81% -0.32
Item for irregular profit and losss
Unit: CNY
Item for irregular profit and losss From Jan. 1st 2009 to end of report period
Profit and loss on disposal of non-liquid assets
Investment income
Net income from other non-business activities 597,167
Effect index for the income tax of irregular profit and
loss
-149,292
effect index for irregular profit and loss attributed to
minority shareholders
-2,712
Total 445,163
2.2 The total number of the shareholders and top 10 shareholders with unlimited shares
at the end of the report period
Unit； share
Total number of shareholders 19532, including 12453
shareholders for A share, 7079
shareholders for B share
The top 10 shareholders with unlimited shares
Name of Shareholders Number of unlimited
shares
The Type
of shares
HTHK/CMG FSGUFP-CMG FIRST STATE CHINA GROWTH FD 18,087,722 B shares
GAO-LING FUND,L.P. 11,144,726 B shares
HUITIANFU VALUE-ADDED SECURITIES- ORIENTED
CAPITAL FUND
7,074,658
A shares3
HUITIANFU GROWTH FOCUS SECURITIES- ORIENTED
CAPITAL FUND
6,507,938
A shares
GOVERNMENT OF SINGAPORE INV. CORP.- A/C "C" 6,493,758 B shares
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 5,900,534 B shares
JF ASIA DOMESTIC OPPORTUNITIES FUND 5,699,983 B shares
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 5,685,052 B shares
MIRAE ASSET CHINA SOLOMON EQUITY INVESTMENT TRUST 1 4,012,950 B shares
UBS (LUXEMBOURG) S.A. 3,193,216 B shares
3. MAJOR ISSUES
3.1 The Great Change and Reasons on Main Accountant Data and Financial Index
( √ )applicable ( ) not applicable
UNIT: CNY
Item March 31st,2009 Dec.31st,2008 More or less (%) compared
with end of last year
Monetary capital 2,152,559,189 1,748,573,840 23.10
Construction in progress 197,403,495 154,490,715 27.78
Advance money 240,019,874 188,709,167 27.19
Other accounts payable 489,680,426 412,923,817 18.59
Item 1st quarter of
2009
1st quarter of
2008
More or less (%) compared
with end of last year
Sale expenses 362,400,303 372,999,937 -2.84
Financial expenses -10,362,785 -10,859,335 -4.57
Net cash flow from operating
activities
465,241,339 862,849,632
-46.08
Net profit attributed to
owner of parent company
298,501,978 271,637,866 9.87
The reasons for such great change are stated as following:
a. During the report period, the large increase on advance money was attributed to more advance
payment by the distributors. The increase on monetary capital was contributed by good cash flow due
to the strict performance of sales policy as delivery after payment. And the increase of other accounts
payable was caused by the Company to get more deposits from distributors.
b. During the report period, the Company accelerated the construction speed on investment projects,
which caused large increase on capital expenditure and also construction in progress compared with the
same report period of last year.
c. During the report period, the Company strengthened the expenditure management which caused
certain decrease on sales expenses.
d. During the report period, the large decrease on net cash flow from operating activities was
contributed by the decrease on cash received from sales and increase on cash payment for tax.
e. during the report period, the net profit was increased due to the decrease on business tax,4
associate charge and sales expenses of the Company.
3.2 Analysis and explanation on the situation, impact and solution of other major
issues
( )applicable ( √ ) not applicable
3.3 The Execution of Promised Issues by the Company, Shareholders and Actual
Controller
( √ )applicable ( ) not applicable
When the Company was launching the share structure reform in March 2006, the controlling shareholder
- Yantai Changyu Group Co., LTD made the promises in 2006 as following: The shares of the Company
held by Group Company will not be listed and transferred within 36 months from the date for obtaining
the listing right. Within 12 months at the expiration of the guaranteed period mentioned above, the
proportion for shares sold out as non-listed shares initially through stock exchange in total shares of
Group Company is less than 5%, and 10% for that within 24 months at the expiration of the guaranteed
period. Group Company also promised to submit the proposal in its shareholders’ meeting 2005, 2006
and 2007 which suggest the cash dividends proportion as more than 65% of distributable profits made in
same year, and guarantee to approve of the proposal during the meeting.
The Group Company has kept its promise and voted for the Distribution Plan in 2005, 2006 and 2007
Shareholders’ meeting, agreed to distribute no less than 65% distributable profit realized in those years
by cash dividend.
The Company and its shareholders with 5% more shares (5% included ) did not make any other promise
in previous and this report period, which might greatly influence the operation achievements and financial
situation of the Company.
3.4 Warning and explanation for the estimation on the possible loss of total 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.
( )applicable ( √ ) not applicable
3.5 Other major issues
3.5.1 Securities investment
( √ ) not applicable
3.5.2 Holding share equity of other listed company
( )applicable ( √ ) not applicable
3.5.3 The Company’s Receptions, Studies and Visits during report period
Reception date Reception place Reception way Visitor Main topic and
material provided
Feb.17,2009 Meeting room of
the Company
Field survey Morgan
Stanley
Principal
operation, future
development
Feb.19, 2009 Meeting room of Field survey China Galaxy Principal5
the Company Investment operation, future
development
Feb.21, 2009 Meeting room of
the Company
Field survey Huitianfu
Funds
Principal
operation, future
development
March 7, 2009 Meeting room of
the Company
Field survey NOMURA
SECURITIES
Principal
operation, future
development
March 10, 2009 Meeting room of
the Company
Field survey China
International
Capital
Principal
operation, future
development
March 14, 2009 Meeting room of
the Company
Field survey nomura
international
Principal
operation, future
development
4. appendix
4.1 Balance sheet
Yantai Changyu Poineer Wine Co., Ltd.
Unit:CNY
At 31 March 2009 At 31 December 2008
Assets
Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company
amount
Current assets：
Monetary fund 2,152,559,189 1,568,129,077 1,748,573,840 1,199,543,976
Financial assets for trade
Notes receivable 57,652,223 25,438,503 13,378,706 5,215,800
Account receivable 106,004,756 4,432,015 82,343,029 13,271,136
Advance money 4,833,793 182,159 5,278,985 2,942,070
Interest receivalbe 13,346,737 13,346,737 19,176,250 19,176,250
Dividend receivable 406,972,236
Other account receivable 2,830,885 416,246,280 23,713,826 361,305,380
Inventories 809,545,288 421,263,676 997,942,600 438,936,622
Non-current assets due within one
year 15,000,000 15,000,000 15,000,000 15,000,000
Other current assets 253,935
Total current assets 3,161,772,871 2,464,038,447 2,905,661,171 2,462,363,470
Non-current assets：
Financial assets for sale
Investment held to expiration
Long-term account receivable6
Long-term equity investment 10,000,000 169,077,178 10,000,000 169,077,178
Real estate for investment
Fixed assets 716,186,354 345,434,365 728,229,135 351,548,553
Construction in progress 197,403,495 10,866,210 154,490,715 8,263,910
Project material
Liquidation of fixed assets
Biological assets for production 40,726,708 11,738,099 40,675,990 11,738,099
Oil and gas assets
Intangible assets 122,614,747 92,881,115 101,426,926 93,648,384
Development expenditure
Goodwill
Long-term deferred expenses 26,650,697 21,452,595
Assets of deferred income tax 65,751,582 14,592,040 91,950,794 14,950,351
Other non-current assets 6,713,187 6,469,535 7,045,254 6,747,847
Total non-current assets 1,186,046,770 651,058,542 1,155,271,409 655,974,322
Total assets 4,347,819,641 3,115,096,989 4,060,932,580 3,118,337,792
Yantai Changyu Poineer Wine Co., Ltd.
Unit: CNY
At 31 March 2009 At 31 December 2008
Liabilites, rights and interests of
shareholders Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company
amount
Current liabilities:
Short-term loan
Financial liabilities for trade
Notes payable
Accounts payable 195,955,876 102,889,893 220,708,265 169,592,563
Advance money 240,019,874 188,709,167
Wage payable 137,916,583 100,662,856 151,849,547 105,145,026
Tax payable 356,129,953 50,734,759 457,714,254 68,218,327
Interest payable
Dividend payable
Other accounts payable 489,680,426 332,549,502 412,923,817 266,834,580
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 1,419,702,712 586,837,010 1,431,905,050 609,790,496
Non-current liabilities：
Long-term loan
Bond payable7
Long-term accounts payable
Special accounts payable
Estimated liabilities
Liabilities of deferred income tax
Other non-current liabilities
Total non-current liabilities
Total liabilities 1,419,702,712 586,837,010 1,431,905,050 609,790,496
Shareholder rights and interests：
Capital stock 527,280,000 527,280,000 527,280,000 527,280,000
Capital reserve 557,222,454 557,222,454 557,222,454 557,222,454
Less: treasury stock
Surplus reserve 295,942,630 295,942,630 295,942,630 295,942,630
Undistributed profit 1,461,690,064 1,147,814,895 1,163,188,086 1,128,102,212
Total shareholder rights and
interests of parent company 2,842,135,148 2,528,259,979 2,543,633,170 2,508,547,296
Minority shareholder rights and
interests 85,981,781 85,394,360
Total shareholder rights and
interests 2,928,116,929 2,528,259,979 2,629,027,530 2,508,547,296
Liabilites and total shareholders
rights and interests 4,347,819,641 3,115,096,989 4,060,932,580 3,118,337,792
4.2 Profit statement
Yantai Changyu Poineer Wine Co., Ltd.
Unit: CNY
January to March 2009 January to March 2008
Item
Consolidated
amount
Parent
company
amount
Consolidated
amount
Parent
company
amount
Business income 1,257,455,017 216,025,080 1,264,760,221 392,127,759
Less: business cost 374,685,634 166,437,027 381,490,609 298,443,281
Business tax and associate charges 63,253,395 28,779,095 82,059,305 53,272,151
Sales expenses 362,400,303 372,999,937 169,008
Management expenses 72,852,027 30,607,121 74,944,814 37,969,002
Financial expenses -10,362,785 -10,302,755 -10,859,335 -10,365,666
Assets depreciation loss
Add: fair value charge profit (loss is
listed with "-")
Investment profit ((loss is listed
with "-")
18,907,2718
Including: investment profit for
joint-run business and joint venture
Operating profit 394,626,443 19,411,863 364,124,891 12,639,983
Add: Non-operating income 616,227 500,800 1,883,385 106,898
Less: non-operating expenditures 19,060 13,930 104,488 100,000
Including: non-current assets
disposing loss
Total profit 395,223,610 19,898,733 365,903,788 12,646,881
Less: income tax expenses 96,134,211 186,050 93,693,749 3,213,613
Net profit 299,089,399 19,712,683 272,210,039 9,433,268
Net profit of parent company's
owners 298,501,978 19,712,683 271,637,866 9,433,268
Minority shareholder profit and loss 587,421 572,173
EPS
Basic EPS 0.57 0.04 0.52 0.02
Diluted EPS 0.57 0.04 0.52 0.02
4.3 Cash Flow Statement
Yantai Changyu Wine Poineer Co., Ltd.
Unit: CNY
January to March 2009 January to March 2008
Item
Cosolidated
amount
Parent
company
amount
Cosolidated
amount
Parent
company
amount
1. Cash flows from operating
activities:
Cash received from sales of goods
and rending of services 1,522,433,676 296,665,429 1,713,246,269 560,510,771
Tax refund received
Other cash received related to
operating activities 24,224,574 422,108,997 29,863,227 352,514,463
Subtotal of cash flows of operating
activities 1,546,658,250 718,774,426 1,743,109,496 913,025,234
Cash paid for goods and services 387,281,963 267,506,303 360,799,272 237,503,684
Cash paid to and on behalf of
employees 79,278,018 31,241,061 65,257,735 46,880,080
Cash paid for taxes and expenses 396,193,072 61,817,936 291,785,545 61,540,598
Other cash paid related to operating
activities 218,663,858 10,539,637 162,417,312 14,181,371
Sub-total of cash outflows of
operating activities 1,081,416,911 371,104,937 880,259,864 360,105,733
Net cash flow from operating
activities 465,241,339 347,669,489 862,849,632 552,919,5019
2. Cash flow from investing activities:
Cash received from return of
investment 84,096,641 84,096,641
Fixed deposit with the term of over 3
months 156,419,840 139,419,840
Cash received from obtaining
investment profit 18,907,271 10,214,680 10,214,680
Cash received from interest income 6,623,722 6,571,972
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets
Net cash received from disposal of
branch and other business unit
Other cash received related to
investing activities
Subtotal of cash flows of investment
activities 163,043,562 164,899,083 94,311,321 94,311,321
Cash paid to acquire fixed assets,
intangible assets and other long-term
assets 67,931,426 4,615,345 44,334,406 7,945,492
Fixed deposit with the term of over 3
months 382,500,000 382,500,000
Cash for investment 4,000,000
Net cash paid to acquire branch and
other business unit
Other cash paid related to investment
activities
Subtotal of cash outflows of
investment activities 67,931,426 4,615,345 426,834,406 394,445,492
Net cash flow from investing activites 95,112,136 160,283,738 -332,523,085 -300,134,171
3.Cash flow from financing activites
Cash received from acquiring
investment
Including: cash received from
acquiring minority shareholders
investment by branch
Cash received from acquiring loans
Other cash received related to
finaning activities
Subtotal cash flows of financing
activities
Cash paid to pay debts
Cash paid to distribute dividend,
profit or pay interest10
Including: dividend and profit paid to
minority shareholders by branch
Other cash paid related to financing
activities
Subtotal of cash outflows of financing
activities
Net cash flow from financing activites
4. Influences of exchange rate
fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash
equivalents 560,353,475 507,953,227 530,326,547 252,785,330
Add: balance at the beginning of the
period of cash and cash equivalents 792,724,722 265,694,858 856,534,631 608,642,980
6.Balance at the end of the period of
cash and cash equivalents 1,353,078,197 773,648,085 1,386,861,178 861,428,310
4.4 Audit Report
Not audited
Yantai Changyu Wine Poineer Co., Ltd.
Board of Directors
24th April, 2009
