Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Yantai Changyu Pioneer Wine Co., Ltd.
2023 Semi-annual Report
Final 2023-03
August 31, 2023
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Table of Contents
I、Important Notice, Table of Contents and Definition .................................................................3
II、Brief Introduction for the Company and Main Financial Indicators ..................................6
III、Discussion and Analysis of Management Team .................................................................... 9
IV、Corporate Governance ..........................................................................................................25
V、Environmental and Social Responsibility ............................................................................. 27
VI、Major issues ........................................................................................................................... 30
VII、Changes in Shares and the Shareholders’ Situation ......................................................... 39
VIII、Related Situation of Preferred Shares ................................................................................ 46
IX、Related Situation of Bonds ..................................................................................................... 46
X、Financial Report ......................................................................................................................47
Last page Report date ...............................................................................................................155
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
I. Important Notice, Table of Contents and Definition
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 semi-annual report with no false records, misleading statements or
significant omissions, and undertake individual and joint legal liabilities.
Mr. Hongjiang ZHOU (Person in charge of the Company), Mr. Jianxun JIANG (Person in
charge of accounting work) and Ms. Cuimei GUO (Person in charge of accounting organ &
Accountant in charge) assure the truthfulness, accuracy and completeness of the financial
report in the semi-annual report.
All directors have attended the meeting for deliberating the semi-annual report.
Forward-looking statements such as future plans and development strategies covered in this
report do not constitute a substantial commitment of the Company to investors. Investors are
advised to pay attention to investment risks.
Regarding significant risks that the Company may face during the business process, please
refer to “10. Risks and response measures” in “III Discussion and Analysis of Management
Team” in this report. Investors are suggested to read carefully and pay attention to investment
risks.
The Company has no plan to distribute cash dividends and bonus shares and capital reserve
will not be transferred to equity.
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Reference Documents
(1) The original of 2023 Semi-annual Report autographed by the chairman.
(2) The Financial Statements autographed and sealed by the chairman, chief accountant and
accountants in charge.
(3) The Prospectus and Public Offering Announcement for Stock B in 1997; The Prospectus
and The Shares’ Change & Public Offering Announcement for Stock A in 2000.
(4) The originals of all documents and announcements that the Company made public during
the report period in the newspapers designated by China Securities Regulatory Commission.
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Definition
Definition Item Refers to Definition Content
Company/The Company Refers to Yantai Changyu Pioneer Wine Co., Ltd.
Changyu Group/Controlling Shareholder Refers to Yantai Changyu Group Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
KPMG Huazhen Refers to KPMG Huazhen LLP (Limited Liability Partnership)
CNY Refers to Chinese Yuan
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
II. Brief Introduction for the Company and Main Financial Indicators
1. Company’s information
Stock Abbreviation Changyu A, Changyu B Stock Code 000869，200869
Stock Abbreviation after Alteration None
Place of Stock Listing Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese Name 张裕
Legal Name in English YANTAI CHANGYU PIONEER WINE COMPANY LIMITED
Abbreviation of English Name CHANGYU
Legal Representative Hongjiang ZHOU
2. Contact person and information
Secretary to the Board of Directors Authorized Representative of Securities Affairs
Name Jianxun JIANG Tingguo LI
Address 56 Dama Road, Yantai, Shandong, China 56 Dama Road, Yantai, Shandong, China
Tel. 0086-535-6602761 0086-535-6633656
Fax. 0086-535-6633639 0086-535-6633639
E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn
3. Other information
1) Contact information of the Company
Whether there is any change in the Company’s registered address, office address,
corresponding postcode, website address and email address during the report period
Available Not available
There is no change in the Company’s registered address, office address, corresponding
postcode, website address and email address during the report period. Please refer to 2022
Annual Report for detailed information.
2) Information disclosure and filing location
Whether there is any change in information disclosure and filing location during the report
period
Available Not available
There is no change in the name of the newspaper for information disclosure, the address of
the website designated by the China Securities Regulatory Commission for publishing the
semi-annual report, and the filing location of the Company’s semi-annual report selected by
the Company during the report period. Please refer to 2022 Annual Report for detailed
information.
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
3) Other relevant information
Whether there is any change in other relevant information during the report period
Available Not available
4. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of
previous fiscal years.
Yes No
During the report In the same period More or less than the same
period of last year period of last year (%)
Operating revenue (CNY) 1,966,738,485 1,953,092,135 0.70%
Net profit attributed to shareholders of the listed
363,569,436 358,459,603 1.43%
company (CNY)
Net profit attributed to shareholders of the listed
company after deducting non-recurring profits 324,321,975 344,309,022 -5.80%
and losses (CNY)
Net cash flows from operating activities (CNY) 527,919,786 606,273,595 -12.92%
Basic earnings per share (CNY/share) 0.53 0.52 1.92%
Diluted earnings per share (CNY/share) 0.53 0.52 1.92%
Weighted average return on equity 3.40% 3.37% 0.03%
At the end of this At the end of last More or less than the end of
report period year last year (%)
Total assets (CNY) 12,821,273,302 13,171,506,378 -2.66%
Net Assets attributed to shareholders of the
10,645,880,226 10,579,053,733 0.63%
listed company (CNY)
5. Differences in accounting data under PRC accounting standards and international
accounting standards
1) Differences of net profit and net asset in the financial report disclosed according to
both international accounting standards and PRC accounting standard
Available Not available
Unit：CNY
Net profit attributed to shareholders of the Net Assets attributed to shareholders of the
listed company listed company
During the report In the same period At the end of this At the beginning of
period of last year report period this report period
According to PRC
363,569,436 358,459,603 10,645,880,226 10,579,053,733
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
363,569,436 358,459,603 10,645,880,226 10,579,053,733
accounting standards
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
2) Differences of net profit and net asset in the financial report disclosed according to
both foreign accounting standards and PRC accounting standards
Available Not available
There are no differences of net profit and net asset in the financial report disclosed according
to both foreign accounting standards and PRC accounting standards during the report period.
3) Explanation of the differences in accounting data under domestic and foreign
accounting standards
Available Not available
6. Item and amount of non-recurring gains and losses
Available Not available
Unit：CNY
Item Amount Explanation
Profits and losses on disposal of non-current assets (including the write-off part of the
16,228,006
provision for asset impairment has been made)
Government grants included in the current profits and losses(except for those recurring
government grants that are closely related to the entity’s operation, in line with related 28,971,185
regulations and have proper basis of calculation)
Other non-operating income and expenditure besides above-mentioned items -332,706
Other items of gains and losses that meet the definition of non-recurring gains and losses 0
Less: Amount affected by income tax 4,785,509
Amount affected by minority equity (after tax) 833,515
Total 39,247,461
Specific situation of other gains and losses projects conforming to the definition of
non-recurring profit and loss
Available Not available
None
Explanation for regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company’s Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
□Available Not available
There is no situation regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company’s Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
III. Discussion and Analysis of Management Team
1. Main businesses during the report period
During the report period, the Company’s main business was production and operation of wine
and brandy.
The Company need to comply with the disclosure requirements of “Food and Liquor
Manufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
1) Situation of the industry in which the Company operates
During the report period, the Company’s main business was production and operation of wine
and brandy, thus providing domestic and foreign consumers with healthy and fashionable
alcoholic drinks. Compared with earlier stage, there were no significant changes happened to
the Company’s main business. The wine industry that the Company involved in was still in
growth stage. Being affected by many factors including slowing domestic economic growth
and strong pressure from alternatives in recent years, the competition in the market was fierce,
the wine consumption continuously declined, and a large number of wine production
enterprises were on the brink of loss, even some wine enterprises were eliminated from the
market. However, seen from the long term, the existing consumption concept might change
with the increase of people’s income level and their pursuit of a relaxed, romantic and healthy
lifestyle. More domestic wine would be drunk by people, and wine would enter more and
more household consumption. The situation of current low average consumption of domestic
wine would gradually improve. The Company was at the forefront in the domestic
wine market and was significantly ahead of major domestic competitors.
2) License obtained
Food Food production license
Producer name Obtaining time Obtaining method
category number
Yantai Changyu Pioneer Wine Co., Approval from SC11537060100050
Alcohol 2021.06.01
Ltd. government authority
Beijing Chateau Changyu AFIP Approval from SC11511280920745
Alcohol 2022.08.22
Global Co., Ltd. government authority
Liaoning Changyu Golden Icewine Approval from SC11521052200370
Alcohol 2021.03.25
Valley Co., Ltd. government authority
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Ningxia Chateau Changyu Moser Approval from SC11564010500657
Alcohol 2018.01.25
XV Co., Ltd. government authority
Xinjiang Chateau Changyu Baron Approval from SC11565900100392
Alcohol 2017.08.25
Balboa Co., Ltd. government authority
Yantai Chateau Changyu-Castel Approval from SC11537063600172
Alcohol 2021.06.08
Co., Ltd. government authority
Shaanxi Chateau Changyu Rena Approval from SC11561040400532
Alcohol 2020.10.19
Co., Ltd. government authority
Yantai Chateau Koya Brandy Co., Approval from SC11537063601165
Alcohol 2021.01.11
Ltd. government authority
3) Explanation for other significant events
During the report period, there did not exist the trademark ownership dispute, food quality
issue or food safety incident etc. that had a significant impact on the Company.
Brand operation
The Company’s products were divided into two series: wine and brandy. For wine, main
brands included Longyu, AFIP, Golden Ice Valley, Noble Dragon, Changyu, Zenithwirl,
Vermouth, Rena, Baron Balboa, J.LORMIN, Atrio, Kilikanoon and IWCC and so on. For
Brandy, main brands included Koya, Liquan, Mminni, Pagese, Roullet Fransac and so on.
Major sales mode
The Company’s main sales mode was the distribution mode, and main sales channel was
offline sales, that is, the Company’s products were distributed to sales terminals through
approximately 4000 distributors at home and abroad and ultimately provided to consumers.
Distribution mode
Available Not available
① Situation of change in the number of distributors is shown as follows.
At the beginning of Increased number during At the end of the
Region
the report period the report period report period
1936 89 2025
Eastern China
605 1 606
South China
447 -12 435
Central China
358 -2 356
North China
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
170 -9 161
Northwest China
483 -7 476
Southwest China
312 -6 306
Northeast China
602 93 695
HongKong, Macao,Taiwan China and overseas
4913 147 5060
Total
② Sales information of the Company’s top 5 distributors during the report period
No. Customer name Sales amount (CNY） Proportion in total sales（%）
1 Rank 1st 35,992,127 1.83%
2 Rank 2nd 23,575,149 1.20%
3 Rank 3rd 22,988,172 1.17%
4 Rank 4th 20,211,001 1.03%
5 Rank 5th 18,457,173 0.94%
Total -- 121,223,621 6.16%
The ratio of sales in self-owned exclusive shop exceeds 10%
Available Not available
Sales of online direct sales
Available Not available
First half of 2023 First half of 2022
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 1,711,154,537 699,449,920 59.12% 1,719,362,579 721,760,539 58.02%
Direct sales 255,583,948 106,009,472 58.52% 233,729,556 100,094,927 57.17%
Total 1,966,738,485 805,459,392 59.05% 1,953,092,135 821,855,466 57.92%
The change in sales prices of major products accounting for more than 10% of total operating
income in current report period exceeds 30% compared with those in last report period
Available Not available
Procurement mode and procurement content
Unit: CNY’0000
Amount of major
Procurement mode Procurement content
procurement contents
Qualitative and price comparison Raw materials including grape/bulk wine 29,956.18
Invitation for bids / qualitative and price comparison Packaging materials 22,811.14
Invitation for bids / qualitative and price comparison Brewing materials 758.11
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Invitation for bids / qualitative and price comparison Goods and materials for vineyard 230.68
Contract Fuel and power 1,631.13
Qualitative and price comparison Other alcoholic products and derivatives 671.65
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total
procedure amount
Available Not available
The year-on-year change in the price of major outsourced raw materials exceeds 30%
Available Not available
Major production mode
The production mode of the Company is self-produce.
Commissioned processing and production
Available Not available
Major components of operating costs
① Classification of sector
Unit: CNY
First half of 2023 First half of 2022 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 378,409,335 48.11% 373,837,363 46.27% 1.85%
Liquor Packing material 220,678,705 28.06% 240,932,715 29.82% -1.76%
and Wages 26,735,936 3.40% 26,180,979 3.24% 0.16%
alcoholic
Manufacturing
beverage
/transporting 160,660,499 20.43% 167,043,018 20.67% -0.25%
expenses
② Classification of product
Unit: CNY
First half of 2023 First half of 2022 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 269,460,895 47.65% 267,277,422 45.81% 1.84%
Packing material 150,989,468 26.70% 165,812,423 28.42% -1.72%
Wine Wages 22,021,926 3.89% 22,169,970 3.80% 0.09%
Manufacturing
123,026,000 21.76% 128,178,818 21.97% -0.21%
expenses
Brandy Blending liquor 108,948,440 49.30% 106,559,941 47.45% 1.85%
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Packing material 69,689,237 31.54% 75,120,293 33.45% -1.92%
Wages 4,714,010 2.13% 4,011,009 1.79% 0.35%
Manufacturing
37,634,499 17.03% 38,864,200 17.31% -0.28%
expenses
Yield and inventory
Sales Ton 42,790 45,512 -5.98%
Liquor and
Yield Ton 35,128 36,224 -3.03%
alcoholic beverage
Inventory Ton 22,411 20,572 8.94%
Sales Ton 29,779 32,315 -7.85%
Wine Yield Ton 25,918 30,563 -15.20%
Inventory Ton 14,471 13,645 6.05%
Sales Ton 13,012 13,198 -1.41%
Brandy Yield Ton 9,210 5,661 62.69%
Inventory Ton 7,940 6,927 14.62%
2. Analysis of core competitiveness
Compared with the participants in the arena of the Chinese wine competition sector, the
Company owns following advantages:
Firstly, the Company has a large brand influence. Main brands used have a long history.
“Changyu”, “Noble Dragon” and “AFIP” are all “China famous brands” that have strong
influence and good reputation.
Secondly, the Company has set up a nationwide marketing network. The Company has
formed a “three-level” marketing network system mainly composed of the Company’s
salesmen and distributors and the online sales platform has had a certain scale and strong
influence, owing strong marketing ability and market exploitation ability.
Thirdly, the Company has strong scientific prowess and a product R&D system. Relying on
the country’s “State-level Wine R&D Center”, the Company has owned powerful winemaker
team, mastered advanced winemaking technology and production processes and had strong
product innovation capacity and perfect quality control system.
Fourthly, the Company is in possession of a lot of grape-growing bases that are compatible
with its development requirements. The Company has developed a great deal of vineyards in
the most suitable areas for wine grape growing such as Shandong, Ningxia, Xinjiang and
Liaoning, and its subsidiary overseas enterprises also own matching grape bases in local area,
making the overall scale and structure generally meet the Company’s needs for future
development.
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Fifthly, products in high, medium and low-grade as well as varieties and categories are all
complete. Over 100 varieties of series products such as wine, brandy and sparkling wine
covers various grades, including high, medium and low-grade, which can meet different
consumer groups’ demands. The Company has taken the dominant status in the domestic
wine industry after many years’ development and has comparative advantages in the future
competition.
Sixthly, the Company has a relatively perfect motivation system. Most of Company’s
employees indirectly hold the Company’s equity through controlling shareholders, and most
of the Company’s middle-and-above-level backbone personnel participated in the restricted
share incentive plan implemented in 2023, resulting in high consistency between employee
benefits and shareholders benefits which was in favor of motivating employees to create
value for shareholders.
Seventhly, the Company has set up flexible and efficient decision-making mechanism. The
Company’s core management team always maintains a working style of unity and pragmatic
and flexible and efficient decision-making mechanism, which makes the Company can deal
with market changes more calmly.
Eighthly, the global production capacity layout has been basically completed. The Company
has completed production capacity layout in China, France, Chile, Spain, Australia and other
major wine producing countries in the world, enabling making better use of global
high-quality raw material resources, capital, talents and advanced production processes and
technologies to provide consumers with diversified quality products and better serve
consumers.
Based on the above reasons, the Company has formed relatively strong core competence and
will maintain a relatively dominant position in the future predictable market competition.
3. Analysis in main business
Summarization
During the report period, owing that the adverse factors being faced with China’s economic
development, including the contraction of demand, supply impact and weak expectation,
were not fundamentally eliminated, the overall profitability of domestic wine enterprises was
not good, and the market investment and innovation ability were seriously insufficient,
coupled with the extrusion from other strongly competitive alcoholic products, the
development trend of the industry was still not optimistic. In the first quarter of 2023,
affected by the overall environment, the Company, distributors, suppliers and logistics
enterprises could not work normally due to the fact that a large number of employees fell ill,
resulting in a year-on-year decline in sales volume, which seriously dragged down the
half-year performance.
In the face of adverse situation, the Company insisted in taking the market as the center,
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
insisted the development strategy of “Focus on high quality, Focus on middle-and-high level,
Focus on big product” and the marketing concept of “Increasing sales from the terminal and
continuously-cultivated consumers” without wavering, steadily improved product quality,
continuously carried out marketing innovation and consumer cultivation activities, and
constantly improved the incentive mechanism, achieving favorable results. In the first half
year, the Company realized the business income of CNY1,966.74million with a year-on-year
increase of 0.70% and the net profit attributable to shareholders of the parent company of
CNY363.57million with a year-on-year increase of 1.43%. During the report period, the
Company mainly conducted following work:
Firstly, the Company implemented the focus strategy, and promoted the product structure to
further focus on the middle-and-high-end, especially the high-end, and focus on the core
products that could bring greater sales volume and profit contributions. Besides this, the
Company focused on key cities and core consumer groups to “fight the war of annihilation”,
taking advantage of the leading role of typical cases, strengthened classified marketing, and
continued to carry out banquet promotion and circle marketing activities.
Secondly, the Company further refined and clarified the rights and responsibilities of the
Longyu Business Division, Chateau Wine Business Division, Noble Dragon Business
Division, Brandy Business Division, Imported Wine Business Division, Online Business
Division and Tourism Business Division, gave full play to the organizational dividends of the
business division structure and promoted the healthy development of each business segment.
Thirdly, the Company further improved product quality and constantly improved the
production compliance rate, better adapting to market changes and meeting consumer
demand.
Fourthly, the Company consolidated the achievements of the institutional reform in
production units, promoted the integration of production business, improved the business
model of order driving, and continuously compressed the inventory of finished goods,
reducing production costs and improving production efficiency.
Fifthly, the Company promoted the spirits of “Originality”, “Justice” and “Sincere Service”,
striving to improve its product quality, management ability, service level and service
awareness.
Sixthly, the Company formulated and implemented the restricted share incentive plan, further
improving the enthusiasm and initiative of the backbone personnel and promoting the
development of the enterprise.
By taking above measures, in the second quarter the Company reversed the negative
momentum resulting from the continuous decline in the first quarter, and both operating
income and net profit achieved the growth. Nevertheless, it is still difficult for the Company
to realize the 2023 annual financial budget targets and the targets stipulated in the restricted
share incentive plan. For the sake of achieving the business objectives, the Company will pay
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
special attention to the following tasks in the second half of 2023:
Firstly, the Company will strengthen the profit assessment in combination with the 2023
restricted stock incentive plan. The Company will decompose the assessed profit targets to
each middle-level backbone in each business segment such as sales, production, planting and
management, to improve their initiative in increasing product sales, optimizing product
structure, reducing controllable costs, reducing expenses per ton and other aspects, and to
improve profitability.
Secondly, the Company will promote the construction of cultural experience centers and
vigorously implement circle marketing to increase high-end product sales. The Company will
give full play to its core competitive advantages, select some key markets to promote the
construction of cultural experience centers, and effectively empower indicator growth and
brand promotion. The Company will choose the circles that are more suitable for its brand
characteristics, the easiest to reach, and own the most obvious input-output effect, clarify
specific work plans including development path, target assessment, tracking and scheduling,
and summary and improvement, so as to achieve city-level breakthroughs and promote
high-end product sales.
Thirdly, the Company will continue to carry out banquet promotion activities to further
consolidate and enhance the market position of mid-end products. For Noble Dragon and
below-level wine products, as well as mid-level brandy products, the Company will pay
special attention to the banquet scene, put forward different banquet requirements and
assessment requirements for the markets at different development stages, continuously
conduct the banquet promotion, and strive to achieve sales breakthrough in the cities through
the breakthrough of the banquet scene.
Fourthly, the Company will accelerate the research in production technology and new
products, develop products with Chinese characteristics, more suitable for Chinese tastes and
eating habits, more in line with young people’s preferences, and increase the reserve of new
products, so as to meet the needs of consumers at all levels.
Fifthly, the Company will continue to promote digital transformation, make full use of
consumer data, deeply study the consumer behavior preferences to better guide market
segmentation, product development, media input, channel promotion, brand marketing and
other activities. In addition, it will take advantage of enterprise wechat to improve the
communication efficiency of all staff and related parties and activate terminal stores through
the “i Changyu” applet.
Sixthly, the Company will do a good job in field management before grape harvesting to
strive to improve grape quality. It will also scientifically organize the harvesting of grape raw
material and complete the harvesting task with quality and quantity, providing reliable raw
material guarantee for the future development of the Company.
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Year-on-year change in key financial data
Unit: CNY
The same period Year-on-year
This period Cause of significant changes
of last year increase or decrease
Mainly due to increase in the average price
Operating revenue 1,966,738,485 1,953,092,135 0.70%
of products.
Mainly due to the increase in the sales
Operating cost 805,459,392 821,855,466 -2.00%
proportion of high gross margin products
Mainly due to the increase in marketing
Sales expense 453,001,710 417,764,419 8.43%
expense
Mainly due to the increase in administrative
Management expense 128,695,395 127,504,270 0.93%
expenses and depreciation expenses
Mainly due to the increase in interest
Financial expense 3,226,433 6,085,438 -46.98% expenses and the decrease in exchange gains
and losses
Income tax expense 130,350,513 128,189,749 1.69%No significant changes
Mainly due to the increase in new product
R&D expense 6,653,626 5,509,656 20.76%
and new process research
Net cash flow generated in Mainly due to the decrease in cash received
527,919,786 606,273,595 -12.92%
operating activities from tax refunds
Net cash flow generated in Mainly due to the increase in cash paid for
-251,021,334 -82,230,822 205.26%
investment activities investment
Mainly due to the increase in cash paid for
Net cash flow generated in
-467,609,294 -186,701,705 150.46% distributing dividend and profit or repaying
financing activities
interest payments
Mainly due to the decrease in net cash flow
Net increased amount of
-189,672,821 337,529,905 -156.19% for operating, investment and financing
cash and cash equivalents
activities
Significant change in the profit form and profit source of the Company during the report
period
Available Not available
There is no significant change in the profit form and profit source of the Company during the
report period.
Composition of operating revenue
Unit: CNY
This report period The same period of last year Year-on-year
Amount Proportion in Amount Proportion in increase or
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
operating revenue operating revenue decrease (%)
Total operating revenue 1,966,738,485 100% 1,953,092,135 100% 0.70%
Sector-classified
Sector of liquor and
1,966,738,485 100% 1,953,092,135 100% 0.70%
alcoholic beverage
Product-classified
Wine 1,371,894,155 69.75% 1,396,641,244 71.51% -1.77%
Brandy 534,282,319 27.17% 512,003,369 26.22% 4.35%
Tourism 43,589,121 2.22% 29,847,803 1.53% 46.04%
Others 16,972,890 0.86% 14,599,719 0.75% 16.25%
Area-classified
Domestic 1,687,735,613 85.81% 1,660,239,304 85.01% 1.66%
Overseas 279,002,872 14.19% 292,852,831 14.99% -4.73%
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 Operating Gross increase or increase or increase or
revenue cost margin decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross margin
Sector-classified
Sector of liquor and
1,966,738,485 805,459,392 59.05% 0.70% -2% 1.13%
alcoholic beverage
Product-classified
Wine 1,371,894,155 565,498,289 58.78% -1.77% -3.07% 0.55%
Brandy 534,282,319 220,986,185 58.64% 4.35% -1.59% 2.50%
Tourism 43,589,121 12,342,604 71.68% 46.04% 27.12% 4.21%
Others 16,972,890 6,632,313 60.92% 16.25% 59.73% -10.64%
Area-classified
Domestic 1,687,735,613 607,405,196 64.01% 1.66% -1.36% 1.75%
Abroad 279,002,872 198,054,196 29.01% -4.73% -3.88% -2.11%
Under the condition that the statistical caliber of the Company’s main business data is
adjusted during the report period, the Company’s main business data adjusted on the basis of
caliber at the end of report period in recent one period.
Available Not available
18
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
The Company need to comply with the disclosure requirements of “Food and Liquor
Manufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
4. Analysis in non-main business
Available Not available
5. Analysis in assets and liabilities
1) Significant change in assets composition
Unit: CNY
At the end of this report period At the end of last year Proportion
Explanation
Proportion in Proportion in increase or
on significant
Amount the total assets Amount the total assets decrease
changes
(%) (%) (%)
No significant
Monetary funds 1,661,628,793 12.96% 1,904,942,625 14.34% -1.38%
changes
No significant
Account receivables 210,175,785 1.64% 217,886,837 1.64% 0%
changes
Contract assets -
No significant
Inventory 2,926,495,444 22.83% 2,833,824,908 21.33% 1.50%
changes
No significant
Investment real estate 21,041,320 0.16% 23,031,335 0.17% -0.01%
changes
No significant
Long-term equity investments 38,065,512 0.30% 45,575,193 0.34% -0.04%
changes
No significant
Fixed assets 5,926,395,012 46.22% 5,546,334,638 41.75% 4.47%
changes
No significant
Construction in progress 47,247,490 0.37% 660,727,258 4.97% -4.60%
changes
No significant
Right-of-use asset 128,804,715 1% 149,020,444 1.12% -0.12%
changes
No significant
Short-term borrowings 348,885,834 2.72% 488,464,425 3.68% -0.96%
changes
No significant
Contract liability 135,643,228 1.06% 141,073,446 1.06% 0%
changes
No significant
Long-term borrowings 81,961,226 0.64% 132,856,562 1% -0.36%
changes
No significant
Lease liability 94,469,356 0.74% 111,496,142 0.84% -0.10%
changes
19
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
2) Main overseas assets situation
Available Not available
Unit：CNY
Formation Operation Control measures for safeguarding of Earning Proportion of overseas assets Whether there are
Details of assets Assets scale Location
reasons mode asset security condition in the Company’s net assets significant impairment risks
The Company participates in making important
Hacienda Y Vinedos Acquisition of Independent
553,254,126 Spain decisions through board of directors and 10,390,752 5.12% No
Marques Del Atrio. SL equity operation
appoints CFO on financial management.
Establishment
Indomita Wine Independent The Company participates in making important
of joint 555,189,387 Chile -5,893,708 5.14% No
Company Chile, S.p.A. operation decisions through board of directors.
venture
Kilikanoon Estate Pty., Acquisition of Independent The Company participates in making important
158,843,266 Australia -2,755,353 1.47% No
Ltd. equity operation decisions through board of directors.
Sole
Francs Champs Independent The Company participates in making important
proprietorship 218,445,628 France -2,352,895 2.02% No
Participations SAS operation decisions through board of directors.
establishment
Other information explanation None
3) Assets and liabilities measured at fair value
Available Not available
4) Limitations of assets rights up to the end of the report period
①For information about assets mortgage and pledge, please refer to Announcement on External Guarantee and Announcement on Guarantee provided
by Spanish Atrio Company for Bank Loan disclosed on China Securities Journal, Securities Times and CNINFO (http://www.cninfo.com.cn) in 2016,
2017, 2018, 2019 and 2020.
②For the types and amounts of mortgaged and pledged assets, please refer to “53. Assets with ownership or use right restrictions” in “7. Notes to items
20
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
in the consolidated financial statements” in the note to the financial statements of this report.
6. Analysis in investment condition
1) Overall situation
Available Not available
Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation
3,460,000 46,420,000 -92.55%
2) Cases of acquired significant equity investments during the report period
Available Not available
3) Cases of significant ongoing non-equity investments during the report period
Available Not available
Unit: CNY
Accumulated Accumulated Reasons for
Whether
Involved Investment actual realized unreached
belongs to
Investment sectors of amount during investment Capital Project Estimated earnings up planning Disclosure
Project name fixed Disclosure index (if have)
mode investment the report amount up to the source progress earnings to the end of schedule and date
assets
projects period end of the report the report estimated
investment
period period earnings
Yantai Changyu Please refer to Resolution
Liquor and
International Announcement of Seventh
Self-constr alcoholic Owned
Wine City Yes 3,460,000 1,703,464,100 100% 0 0 — 2017.04.22 Session Board of Directors 4th
ucted beverage fund
Blending and Meeting, Resolution
sector
Cooling Center Announcement of Seventh
21
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Session Board of Directors 8th
Yantai Changyu
Meeting, Resolution
International Self-constr Owned
Yes 0 1,135,370,000 100% 0 0 — 2017.04.22 Announcement of Seventh
Wine City ucted fund
Session Board of Directors
Bottling Center
10th Meeting, Resolution
Announcement of Eighth
Oak Barrel
Self-constr Owned Session Board of Directors 4th
Procurement Yes 0 178,634,200 90% 0 0 — 2021.04.28
ucted fund Meeting, Resolution
Project
Announcement of Eighth
Intellectualized
Session Board of Directors
Upgrade and
11th Meeting and Resolution
Renovation
Self-constr Owned Announcement of Ninth
Project of Yes 0 50,113,000 100% 0 0 — 2022.04.27
ucted fund Session Board of Directors 5th
Changyu Wine
Meeting disclosed on China
Culture
Securities Journal,
Museum
Securities Times and
Changyu CNINFO
Industrial Park (http://www.cninfo.com.cn/)
Self-constr Owned
infrastructure Yes 0 0 0% 0 0 — 2023.04.13
ucted fund
improvement
project
Total -- -- -- 3,460,000 3,067,581,300 -- -- 0 0 -- -- --
22
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
4) Financial assets investment
① Security investment situation
Available Not available
There are no security investments for the Company during the report period.
② Derivatives investment
Available Not available
There are no derivatives investments for the Company during the report period.
5) The usage situation of raised capital
□Available Not available
There are no usage situations of raised capital for the Company during the report period.
7. Sale of significant assets and equities
1) Sale of significant assets
Available Not available
The Company did not sell significant assets during the report period.
2) Sale of significant equities
Available Not available
8. Analysis of main holding and joint stock companies
Available Not available
Situation of main subsidiaries and joint stock companies affecting over 10% of the Company’s net profit
Unit: CNY
Company Main Registered Operating Operating
Company name Total assets Net assets Net profit
type business capital revenue profit
Yantai Changyu Sales of
Pioneer Wine Sales Subsidiary alcoholic CNY8million 764,509,100 185,382,791 1,237,404,158 374,169,507 297,826,256
Co., Ltd. products
Sales of
Yantai Changyu Wine
Subsidiary alcoholic CNY5million 186,119,190 170,547,378 359,850,266 55,771,892 41,742,660
Sales Co., Ltd.
products
Changyu Trading Co., Sales of
Ltd. in Development Subsidiary alcoholic CNY5million 63,969,101 14,401,839 101,855,489 21,428,497 16,074,350
Zone of Yantai products
Sales of
Laizhou Changyu
Subsidiary alcoholic CNY1million 50,136,796 1,000,000 146,704,244 10,883,289 8,138,203
Wine Sales Co., Ltd.
products
Acquisition and disposal of subsidiaries during the report period
Available Not available
Explanation on main holding and joint stock companies
None
23
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
9. Situation of the structured subjects controlled by the Company
Available Not available
10. Risks and response measures
1)Risk in price fluctuation of raw materials
Grapes are the Company’s main raw materials. The grape’s yield and quality are affected to a
certain extent by the natural factors such as drought, wind, rain, frost and snow. These force
majeure factors greatly influence the quantity and price of the grapes in this Company orders
and add the uncertainty to the Company’s production and operation. Therefore, the Company
will lower the risks that are likely to affect grape quality and result in price fluctuation by
means of expanding the self-run vineyards, strengthening the vineyard management and
optimizing the layout of vineyards.
2)Risk in uncertainty of market input and output
To cope with the cutthroat market competition and to meet the needs for market development,
the Company has input more and more capital in the market and the sales expense has taken
up a higher percentage point in the business revenue. The input-output ratio will affect the
Company’s operating results to a great extent and the risk that some investments may not
reach the expectations is likely to occur. Therefore, the Company will strengthen market
research and analysis, enhance market forecast accuracy and continue to perfect the
input-output evaluation system to ensure the investments in market to be satisfactory as
expected.
3)Risk in product transport
The Company’s products are fragile and sent to different places all over the world, mostly by
sea, railway and expressway. The peak season of sales is usually in cold winter and close to
the spring festival when market has a great demand. At that time, the natural and human
factors such as serious shortage of transport capacity resulting from busy flow of people and
goods, wind, snow, freezing as well as traffic accidents make the transport departments
difficult to send products to markets in time and safely. As a result, it makes this Company
have to face the risks of missing the peak season of sales. Therefore, the Company will adopt
all methods possible like making precise sales prediction and well designed connection of
production and sales, reasonably arranging production and transport means and making use
of more available warehouses in different places to lower these kinds of risks.
4)Risk in investment faults
The Company invested many projects in the previous periods and the investment amounts
were relatively large. For individual project, owing to the influence of various factors, it led
to have the risks of facing with the investment amount out of budget or hardly taking back the
expected investment earnings. The Company will take an adequate argument and scientific
decision-making for investment projects, try hard to reduce and avoid investment risks.
5)Risk in exchange rate
The Company’s overseas subsidiaries export products to many different countries and the
export amount is relatively large. There may be exchange losses or gains due to exchange rate
fluctuation.
6)Other risk
The production and sales of the Company’s products may be affected by force majeure such
as wars, typhoons and earthquakes.
24
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
IV. Corporate Governance
1. Information for the shareholders’ meeting and interim shareholders’ meeting held
during the report period
1)Information for the shareholders’ meeting during the report period
Participation Convening Disclosure
Session Meeting type Meeting Resolution
ratio of investors date date
At this meeting, it deliberated and approved
2022 Annual Board of Directors’ Work
Report, 2022 Annual Board of Supervisors’
Work Report, 2022 Annual Report, Proposal
on 2022 Annual Profit Distribution,
Proposal on 2023 Annual Financial Budget,
Proposal on Appointment of Certified
Public Accounting Firm, Proposal on the
Company’s “Restricted Share Incentive
Plan in 2023 (Draft)” and Abstract,
2022 Annual Annual Proposal on Formulating the Company’s
Shareholders’ Shareholders’ 60.77% 2023.05.26 2023.05.27 “Assessment Management Measure of
Meeting Meeting Restricted Share Incentive Plan in 2023”
and Proposal on Authorization of
Shareholders’ Meeting to Board of
Directors to Promote Issues Relevant with
the Company’ Restricted Share Incentive
Plan in 2023 by the way of open ballot. For
detailed information, please refer to
Resolution Announcement of 2022 Annual
Shareholders’ Meeting (Announcement no.:
2023-Temporary 18) published on
http://www.cninfo.com.cn
2)Request for convening interim shareholders’ meeting by priority shareholders owing
recovered voting right
Available Not available
2. Changes in the Company’s directors, supervisors and senior executives
Available Not available
There were no changes in in the Company’s directors, supervisors and senior executives during
the reporting period. Please refer to the 2022 Annual Report for details.
3. Situation of profit distribution and capitalization of capital reserve into share capital
during the report period
Available Not available
The Company plans not to distribute cash dividends or give bonus shares or make capitalization of
capital reserve into share capital.
4. Implementation of the Company’s equity inventive plan, employee stock ownership
plan or other employee incentive measures
25
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Available Not available
1) Equity incentive
During the reporting period, the Company’s Board of Directors and Shareholders’ Meeting had
deliberated and approved the Proposal on the Company’s “Restricted Share Incentive Plan in
2023 (Draft)” and Abstract, Proposal on Formulating the Company’s “Assessment Management
Measure of Restricted Share Incentive Plan in 2023” and Proposal on Authorization of
Shareholders’ Meeting to Board of Directors to Promote Issues Relevant with the Company’
Restricted Share Incentive Plan in 2023. It was decided that the restricted share incentive would
be provided to middle-level and above business core personnel (excluding independent directors,
supervisors, shareholders or actual controllers holding more than 5% of the Company’s shares
individually or in total and their spouses, parents or children, and foreign employees).
2) Implementation of employees’ share ownership plan
Available Not available
3) Other employee incentives
Available Not available
26
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
V. Environmental and Social Responsibility
1. Major environmental situation
Whether the listed company and its subsidiaries belong to major polluters published by the
environmental protection department
Yes No
Policies and industry standards related to environmental protection
The Environmental Protection Law of People’s Republic of China, The Water Pollution’s
Prevention and Control Law of People’s Republic of China, The Air Pollution’s Prevention
and Control Law of People’s Republic of China, The Environmental Noise Pollution’s
Prevention and Control Law of People’s Republic of China, The Environmental Solid Waste
Pollution’s Prevention and Control Law of People’s Republic of China and The
Environmental Protection Regulations of Liaoning Province; the national’s General
Principles of Hazardous Waste Identification Standards, Surface Water Environmental
Quality Standards, Groundwater Environmental Quality Standards, Environmental Air
Quality Standards, Acoustic Environmental Quality Standards, Emission Standard for
Environmental Noise at the Boundary of Industrial Enterprises, Comprehensive Discharge
Standard for Boiler Air Pollutants, The Limiting Value of Occupational Exposure to
Hazardous Factors in the Workplace (Chemical Hazardous Factors) and Comprehensive
Wastewater Discharge Standard of Liaoning Province.
Administrative permit for environmental protection
It has been approved in the Huanhuanjianzi (2016) No.24 issued by the Environmental
Protection Bureau of Huanren Manchu Autonomous County.
Name of major Quantity Distribution Total Total Condition
Name of Discharge Implemented
pollutants and Mode of of situation of volume approved of
company or concentra pollution discharge
particular discharge discharg discharge of volume of excessive
subsidiary tion standard
pollutants e outlet outlet discharge discharge discharge
Emission Standard
for Air Pollutants of
Confirmed
Boiler
Discharge in line with
(GB13271-2014),
outlet of national
Emission Standard
boiler standard
Organized for Odor Pollutants
Chateau chimney Graphical Meeting
Changyu exhaust gas, (GB14554-93), 4a
and Signs for the
Icewine Co., inorganizedexh 2 in Class 2 of 35m3/d 120m3/d No
Ltd. discharge Environment national
Liaoning aust gas, waster Emission Standard
outlet of al Protection standards
water, noise for Environmental
factory (GB15562.1-
Noise at the
waste 1995)
Boundary of
water (GB15562.2-
Industrial
1995)
Enterprises
(GB12348-2008),
27
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Comprehensive
Wastewater
Discharge Standard
of Liaoning
Province
(DB21/1627-2008)
Treatment of pollutants
The exhaust gas, SO2 and NOX produced by this company's boiler are discharged through
ceramic tube dust removers and bag dust removers. A wastewater treatment station has been
constructed. The wastewater treatment process adopts the treatment process of hydrolys is
aerobiont. Production wastewater and domestic sewage are treated by the in-plant wastewater
treatment station and then discharged into the waste water treatment plant in Beidianzixiang
Town.
Emergency plan for emergent environmental incident
The Company has formulated a comprehensive emergency plan for emergent environmental
incident.
Investment in environmental governance and protection and payment of environmental
protection tax
The Company has made sufficient investment in environmental protection, done a good job
in environmental governance and protection and paid environmental protection tax in full and
timely according to law.
Environmental self-monitoring program
The Company has formulated a complete environmental self-monitoring program.
Administrative penalties due to environmental issues during the reporting period
Name of Company or Penalty Violation Impact on the Production and Rectification Measures of
Penalty Result
Subsidiary Reason Situation Operation of the Listed Company the Company
None None None None None None
Other environmental information that should be made public
No
Measures taken for reducing carbon emissions and effects
Available Not available
Other related environmental information
No
2. Social responsibility performance
1) The Company actively responds to the call of the state, served the rural revitalization well,
adopted the mode of “company + farmer” or “company + cooperative + farmer”, reformed
the sloping fields of Jiaodong Peninsular and the northwestern area including Ningxia and
28
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Xinjiang and so on, the uncultivated land or the barren land into graperies. By means of
providing capital and technology of viticulture to fruit growers, scientific management level
of vineyard had been improved. The Company spared no effort to popularize the
non-pollution and mechanized planting methods, continuously improved production
efficiency of grape base and quality of grape, and reduced production cost of grape and labor
intensity. Through the above measures, on the one hand, it promotes the effective use of land
resources and increases the income of farmers; on the other hand, it improve the local
ecological environment.
2) The Company provided counterpart supports to Huangchengyang village in Longkou City,
an old revolutionary base area by purchasing local agricultural products to help solve the
problem of slow sales.
3) The Company provided help and assistance to the Company’s in-service or retired
employees with poor families, as well as the Company’s in-service or retired employees with
chronic or serious illnesses.
29
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
VI. Major issues
1. Commitments that the Company’s actual controllers, shareholders, related parties, acquirers and the Company and other related
commitment parties have implemented during the report period and have not implemented up to the end of the report period
Available Not available
Commitment Commitment
Commitments Commitment party Commitment type Commitment content Implementation
time period
Yantai Changyu Solve horizontal
Non-horizontal competition May 18th, 1997 Forever Has been performing
Group Co., Ltd. competition
According to Trademark License According to Trademark License
Contract, the trademark royalty of Contract, the trademark royalty annually
Changyu and other trademarks paid paid by the Company to Changyu Group
Commitments at the initial shall be mainly used by Changyu Group
public offering or refinancing Yantai Changyu by the Company to Yantai Changyu
Clear the use of Group Co., Ltd. every year is mainly From May 18th, 1997 to publicize trademarks including
May 18th, 1997
Group Co., Ltd. trademark royalty used for advertising to April 4th, 2019 Changyu and contract products. Except
2013 to 2017 during which the
Changyu and other trademarks and commitment was not strictly performed,
this contract products by Yantai Yantai Changyu Group Co., Ltd. has
Changyu Group Co., Ltd. been performing its commitment.
The CNY231,768,615 that was not
used for publicity of trademarks and
contract products as promised will
be offset by the four-year trademark
Commitments to middle and Compensating royalty from 2019 to 2022. If From April 4th, 2019
Yantai Changyu
small shareholders of the unredeemed insufficient, the shortfall would be April 4 , 2019
th to December 31st, Has been performing
Group Co., Ltd.
Company commitment filled in one time in 2023. If there is 2023
any excess, the excess portion of the
trademark royalty would be
collected from the year with excess
occurrence.
30
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Commitment under timely
Yes
implementation or not
According to the Trademark License Contract (hereafter referred to as “the Contract”), Changyu Group promises that the trademark royalty annually paid by
the Company to Changyu Group shall be mainly used by Changyu Group to publicize trademarks and contract 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 a total of CNY420,883,902 trademark royalty, of which 51% was used to publicize trademarks including
Changyu and contract products with amount of CNY214,650,790. The amount has been used to publicize trademarks including Changyu and contract products
is CNY50,025,181, with a balance of CNY164,625,609. In 2018 and 2019, the trademark royalty collected of 2017 and 2018 is CNY155,623,907, of which
Whether or not to have 51% is used to publicize trademarks including Changyu and contract products with amount of CNY79,368,193. The amount has been used to publicize
specific reasons of the trademarks including Changyu and contract products is CNY12,225,187, with a balance of CNY67,143,006. From 2013 to 2018, the accumulated balance of
unimplemented commitment Changyu Group using to publicize trademarks including Changyu and contract products is CNY231,768,615. Changyu Group promises that the four-year
and next steps trademark royalty from 2019 to 2022 will be used for offset. If insufficient, the shortfall would be filled in one time in 2023. If there is any excess, the excess
portion of the trademark royalty would be collected from the year with excess occurrence.
If Changyu Group is not able to implement the above-mentioned commitment owing to various reasons, the 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 detailed information, please refer to Announcement on Commitment Issues of Yantai Changyu Group Co., Ltd. disclosed on April 4, 2019.
31
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
2. Non-operational occupation capital of the listed company by controlling shareholder
and its related parties
Available Not available
There is no non-operational occupation capital of the listed company by controlling
shareholder and its related parties during the report period.
3. Illegal external guarantee
Available Not available
There is no illegal guarantee situation during the report period.
4. Appointment and dismissal of certified public accountants
Whether the semi-annual report has been audited
Yes No
The semi-annual report has not been audited.
5. Explanation from the board of directors and the board of supervisors for the
“Non-standard Audit Report” during this report period
Available Not available
6. Explanation from the board of directors for the “Non-standard Audit Report” of last
year
Available Not available
7. Issues related with bankruptcy reorganization
Available Not available
There are no related issues of bankruptcy reorganization happened at the end of the report
period.
8. Litigation Issue
Material litigation and arbitration
Available Not available
There are no material litigation and arbitration during the report period.
Other Litigation Issue
Available Not available
9. Penalty and rectification
Available Not available
10. Credit of the Company, its controlling shareholder and actual controller
Available Not available
11. Major related transactions
1) Related transactions in relation to routine operations
Available Not available
32
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Proportion Approved Whether
Amount Available
accounting for transaction exceed Cleari
Related Relationsh Pricing (CNY market price Disclosur
Type Content Price amount of quota (CNY approved ng Disclosure index
party ip principle of similar e date
‘0000) similar transaction form
‘0000) transactions
transactions quota
Expected
Announcement on
Purchase 2023 Annual
Yantai Controlled
Purchase and Routine Related
Shenma by the Determine
and commission Agreemen 2023.04. Transaction
Packagin same d by 4,021 17.63% 9,000 No Cash No
commission processing t pricing 13 disclosed in China
g Co., parent agreement
processing packaging Securities
Ltd. company
materials Journal,Securities
Timesand
CNINFO in 2023
Total -- -- 4,021 -- 9,000 -- -- -- -- --
Details of the return of large sales No
Actual performance of the estimated total amount for
daily operations related transactions by category that No
will occur during this period.
Reason for the deference between transaction price Not available
and market reference price(if available)
2) Related transactions in relation to acquisition and sales of assets or equity
Available Not available
There are no related transactions in relation to acquisition or sales of assets or equity during the report period.
3) Related transactions in relation to common foreign investment
Available Not available
There are no related transactions in relation to common foreign investment during the report period.
4) Related credit and debt dealings
Available Not available
33
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
There are no related credit and debt transactions during the report period.
5) Deals of related financial companies
Available Not available
There is no deposit, loan, credit granting or other financial business between the related
financial companies and related parties.
6) Deals between financial companies controlled by the Company and relayed parties
Available Not available
There is no deposit, loan, credit granting or other financial business between the financial
companies controlled by the Company and related parties.
7) Other major related transactions
Available Not available
For other major related transactions, please refer to the Announcement of 2023 Annual
Expected Routine Related Transaction and the Section XI “ Related Parties and Related
Transaction” of the Financial Report of this report.
Disclosure website of interim report for major related transaction
Disclosure date of Name of disclosure website for
Name of interim announcement
interim announcement interim announcement
Announcement of 2023 Annual Expected Routine 2023.04.13 www.cninfo.com.cn
Related Transaction
12. Major contracts and execution conditions
1) Trusteeship, contract and lease issues
① Trusteeship situation
Available Not available
There is no trusteeship situation during the report period.
② Contract situation
Available Not available
There is no such contract situation during the report period.
③ Lease situation
Available Not available
Explanation for lease situation
On January 1st, 2022, the Company renewed the Space Lease Agreement with the controlling
shareholder Yantai Changyu Group Company Limited. The Company leased the space with
15,196.94 square meters locating at No. 174 Shihuiyao Road, Zhifu District, Yantai City. The
rent per year is CNY 1.4645 million with a rental period of 5 years from January 1st, 2022 to
December 31st, 2026. On January 1st, 2022, the Company’s subordinate Sales & Marketing
Co. of Yantai Changyu Pioneer Wine Company Limited Brandy Sales Division renewed the
Space Lease Agreement with the controlling shareholder Yantai Changyu Group Company
Limited, leasing the space with 42,552.83 square meters locating at No. 1 Jichang Road,
Zhifu District, Yantai City and the space with 3,038 square meters locating at 56 Dama Road,
Zhifu District, Yantai City, which are all under the name of controlling shareholder. The rent
34
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
of above spaces per year is CNY 4.3935 million with a rental period of 5 years from January
1st, 2022 to December 31st, 2026.
In 2022, this Company signed a house-leasing contract with Yantai Shenma Packaging
Company Limited. According to this contract, since July 1st, 2022, this Company leased
property to Yantai Shenma Packaging Company Limited for a business purpose with the
annual rent of CNY 1,626,880. This contract expires on June 30th, 2023.
Project whose profit and loss brought for the Company reach more than 10% of the total
profit during the report period
Available Not available
There are no lease projects whose profit and loss brought for the Company reach more than
10% of the total profit during the report period.
35
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
2) Major guarantee
Available Not available
Unit: CNY’0000
External guarantee of the Company and its subsidiaries（excluding guarantee to subsidiaries）
Disclosure date of
Actual date of Whether or not Whether or not belong
related Guarantee Actual guarantee Guarantee Collateral Counterguarantee Guarantee
Guarantee object name occurrence (date of complete to related-party
announcement about quota amount type (if have) situation (if have) Period
agreement) implementation guarantee
guarantee quota
Joint and
Yantai Economic and
several
Technological Development 2016.12.22 34,160 2016.12.21 34,160 - - 10 years No No
liability
Zone Management Council.
guarantee
Total of the external guarantee quota approved Total of the actual external guarantee amount during the
0 0
during the report period (A1) report period (A2)
Total of the external guarantee quota approved by Balance of the actual external guarantee by the end of the
34,160 34,160
the end of the report period (A3) report period (A4)
Guarantee situations between the Company and subsidiaries
Disclosure date of
Whether or not Whether or not belong
related Guarantee Actual date of Actual guarantee Guarantee Counterguarantee Guarantee
Guarantee object name Collateral complete to related-party
announcement about quota occurrence amount type situation Period
implementation guarantee
guarantee quota
Yantai Changyu Wine Joint liability
Research and Development 2016.12.22 72,176 2016.12.21 72,176 assurance; - - 10 years No Yes
Company Limited Mortgage
Joint liability
Kilikanoon Estate Pty Ltd 2018.12.05 8,528 2018.12.13 7,858 - - 5 year No Yes
assurance
Total of the guarantee quota approved to Total of the actual guarantee amount for subsidiaries during
0 0
subsidiaries during the report period (B1) the report period (B2)
Total of the guarantee quota approved to Balance of the actual guarantee for subsidiaries by the end
80,704 80,704
subsidiaries by the end of the report period (B3) of the report period (B4)
Guarantee situations between subsidiaries
None
Total guarantee amount of the Company（Total of above three major items）
36
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Total of the approved guarantee quota during the Total of the actual guarantee amount during the report
0 0
report period（A1+B1+C1） period（A2+B2+C2）
Total of the approved guarantee quota by the end Balance of the actual guarantee by the end of the report
114,864 114,864
of the report period（A3+B3+C3） period（A4+B4+C4）
The proportion of actual total guarantee amount (A4+B4+C4) accounting for the Company’s net asset 10.79%
Among :
The amount of guarantee for shareholders, actual controllers and their related parties（D） 0
The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is more than 70%
0
directly or indirectly（E）
Total amount of guarantee of the part that exceeds 50% of net assets（F） 0
Total amount of the above-mentioned three items（D+E+F） 0
Explanation for undue guarantees that have happened warranty liability or may take joint payback
No
liabilities during the report period (if have)
Explanation for violating due process to provide external guarantee (if have) No
Explanation on specific situations of adapting guarantee by complex methods
37
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
3) Financial management entrustment
Available Not available
There is no financial management entrustment during the report period.
4) Other important contracts
Available Not available
There are no other important contracts during the report period.
13. Other Major issues
Available Not available
There are no other major issues need to be explained during the report period.
14. Major issues of Company’s subsidiaries
Available Not available
38
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
VII. Changes in Shares and Shareholders’ Situation
1. Changes in shares
1) Changes in shares
Unit: share
Amount before this change Change (+, -) Amount after this change
Percentage Distribute bonus Transfer other capital Percentage
Amount Allot new share Others Subtotal Amount
% share to share capital %
I. Shares with trading limited condition 0 0% 127,650 127,650 127,650 0.02%
1. State-owned holdings 0
2. State-owned legal person holdings 0
3. Other domestic holdings 127,650 127,650 127,650 0.02%
Among which: domestic legal person
domestic natural person 127,650 127,650 127,650 0.02%
4. Foreign-owned holdings
Among which: foreign legal person
foreign natural person
II. Shares without trading limited condition 685,464,000 100% -127,650 -127,650 685,336,350 99.98%
1. A shares 453,460,800 66.15% -22,500 -22,500 453,438,300 66.15%
2. B shares 232,003,200 33.85% -105,150 -105,150 231,898,050 33.83%
3. Oversea listed foreign shares
4. Others
III. Total shares 685,464,000 100% 0 0 685,464,000 100%
39
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Cause of share change
Available Not available
The company’s senior executives increased their holdings of the company’s share
Approval of share change
Available Not available
Transfer ownership of changed shares
Available Not available
Implementation progress of share buy-back
Available Not available
Implementation progress of reducing holding buy-back share through the way of centralized
bidding
Available Not available
The influence of share change on the financial indicators such as basic earnings per share, diluted
earnings per share of the latest year and the latest period, net asset per share belonging to the
Company’s common shareholders, etc.
Available Not available
Other contents the Company thinks necessary or securities regulatory departments ask to make
public.
Available Not available
2) Changes in restricted shares
Available Not available
2. Securities issuance and listing situation
Available Not available
40
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
3. The number of shareholders of the Company and the shareholdings
Total number of preferred shareholder recovering voting power by the end of report period (if have)
Total shareholders in the report period 42,115 0
(see note 8)
Shareholders holding more than 5% or the top 10 shareholders holding situation
Character of Percentage Shares held until the end Changes during the Number of Number of Pledged or frozen
Name of Shareholders
shareholders (%) of the report period report period restricted shares unrestricted shares Share status Amount
Domestic non-state legal
YANTAI CHANGYU GROUP CO., LTD. 50.40% 345,473,856 2,300 0 345,473,856 - 0
person
GAOLING FUND, L.P. Foreign legal person 2.58% 17,685,413 -3,404,806 0 17,685,413 - 0
SHENWAN HONGYUAN SECURITIES Foreign legal person
1.32% 9,066,452 1,772,500 0 9,066,452 - 0
(HONGKONG) LIMITED
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD Foreign legal person 1.06% 7,281,116 -401,900 0 7,281,116 0
GUOTAI JUNAN SECURITIES（HONG KONG）
Foreign legal person 1.02% 6,967,832 1,969,001 0 6,967,832 - 0
LIMITED
HONG KONG SECURITIES CLEARING
Foreign legal person 0.82% 5,618,786 1,198,700 0 5,618,786 - 0
COMPANY LIMITED
#Fengdi JIANG Domestic natural person 0.77% 5,295,000 0 0 5,295,000 - 0
Haitong International Securities Company
Foreign legal person 0.74% 5,091,502 105,000 0 5,091,502 - 0
Limited-Account Client
VANGUARD EMERGING MARKETS STOCK
Foreign legal person 0.60% 4,094,263 67,400 0 4,094,263 - 0
INDEX FUND
VANGUARD TOTAL INTERNATIONAL STOCK
Foreign legal person 0.51% 3,483,537 0 0 3,483,537 - 0
INDEX FUND
Strategic investors or legal result of the placement of new shares to become a
No
top 10 shareholders (if have) (see note 3)
Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action
The explanation for the associated relationship and accordant action
relationship with the other 9 listed shareholders, while the relationship among the other shareholders is unknown.
Explanation of the above-mentioned shareholders’ entrustment/ fiduciary
No
voting rights and waiver of the voting rights
Special explanation for the existence of a special repurchase account among
No
the top 10 shareholders (if have) (see note 11)
The top 10 shareholders with shares without trading limited condition
41
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Type of share
Name of Shareholders Number of shares without trading limited condition held until the end of the year
Type of share Amount
YANTAI CHANGYU GROUP CO., LTD. 345,473,856 A 345,473,856
GAOLING FUND, L.P. 17,685,413 B 17,685,413
SHENWAN HONGYUAN SECURITIES (HONGKONG) LIMITED 9,066,452 B 9,066,452
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 7,281,116 B 7,281,116
GUOTAI JUNAN SECURITIES（HONG KONG） LIMITED 6,967,832 B 6,967,832
HONG KONG SECURITIES CLEARING COMPANY LIMITED 5,618,786 A 5,618,786
#Fengdi JIANG 5,295,000 A 5,295,000
Haitong International Securities Company Limited-Account Client 5,091,502 B 5,091,502
VANGUARD EMERGING MARKETS STOCK INDEX FUND 4,094,263 B 4,094,263
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3,483,537 B 3,483,537
The explanation for the associated relationship and accordant action of the top
10 shareholders with unrestricted shares, the the associated relationship and Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action
accordant action between the top 10 shareholders with unrestricted shares and relationship with the other 9 listed shareholders, and the relationship among the other shareholders is unknown.
the top 10 shareholders
Explanation for the top 10 shareholders who involved in financing activities
The top 10 shareholders do not involve in financing activities and stock trade business.
and stock trading business (if have) (see note 4)
Whether or not the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction during the
report period
Yes No
There is no agreed repurchase transaction taken by the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares during the
report period.
42
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
4. Changes in shareholdings of directors, supervisors and senior executives
Available Not available
Number of Increased number Decreased number Number of shares Number of restricted Number of restricted Number of restricted
Shares held at the of shares held in the of shares held in held at the end shares granted at the shares granted in the shares granted at the
Name Position Status beginning period current period the current period period beginning period current period end period
(shares) (shares) (shares) (shares) (shares) (shares) (shares)
ZHOU
Chairman Incumbent 37,800 1,800 39,600
Hongjiang
Director and
SUN Jian General Incumbent 90,000 30,000 120,000
Manager
Director and
LI Jiming Deputy General Incumbent
Manager
Director, Deputy
JIANG General
Incumbent
Jianxun Manager and
Board secretary
CHEN
Director Incumbent
Dianxin
Aldino
Director Incumbent
Marzorati
Stefano
Director Incumbent
Battioni
Enrico
Director Incumbent
Sivieri
CHIANG
Director Incumbent
Yun
DUAN Independent
Incumbent
Changqing Director
LIU Independent Incumbent
43
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Huirong Director
Independent
LIU Qinglin Incumbent
Director
Independent
YU Renzhu Incumbent
Director
WANG Independent
Incumbent
Zhuquan Director
Chairman of the
LENG Bin Board Incumbent
Supervisory
Liu Zhijun Supervisor Incumbent
ZHENG
Supervisor Incumbent
Wenping
Deputy General
JIANG Hua Incumbent 10,000 10,000
Manager
Deputy General
PENG Bin Incumbent
Manager
General
PAN Jianfu Manager Incumbent
Assistant
General
KONG
Manager Incumbent
Qingkun
Assistant
General
LIU Shilu Manager Incumbent
Assistant
General
XIAO
Manager Incumbent
Zhenbo
Assistant
Total -- -- 137,800 31,800 0 169,600 0 0 0
44
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
5. Changes in controlling shareholders or actual controllers
Changes in the controlling shareholders during the report period
Available Not available
There is no any change in the controlling shareholders during the report period.
Changes in the actual controllers during the report period
Available Not available
There is no any change in the actual controllers during the report period.
45
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
VIII. Related Situation of Preferred Shares
Available Not available
There are no preferred shares during the report period.
IX. Related Situation of Bonds
Available Not available
46
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
X. Financial Report
1. Audit report
Whether the semiannual report has been audited
□ Yes √ No
2. Financial statement
The unit in the statements of the financial notes is RMB Yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2023 Unit: Yuan
Item Note June 30, 2023 December 31, 2022
Current assets:
Monetary fund 7.1 1,661,628,793 1,651,454,115
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable 7.2 684,245 2,712,460
Accounts receivable 7.3 210,175,785 343,982,985
Receivables financing 7.4 308,817,929 309,329,918
Advance payment 7.5 9,251,401 60,415,508
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.6 69,101,039 70,542,398
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 7.7 2,926,495,444 2,903,398,515
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.8 156,044,415 185,337,393
47
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note June 30, 2023 December 31, 2022
Total current assets 5,342,199,051 5,527,173,292
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.9 38,065,512 41,371,385
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.10 21,041,320 22,115,318
Fixed assets 7.11 5,926,395,012 6,028,137,972
Construction in progress 7.12 47,247,490 40,934,161
Productive biological assets 7.13 177,932,255 184,420,741
Oil-and-gas assets
Right-of-use assets 7.14 128,804,715 139,887,159
Intangible assets 7.15 551,495,257 578,240,846
Development expenditure
Goodwill 7.16 107,163,616 107,163,616
Long-term prepaid expenses 7.17 265,783,428 274,699,232
Deferred income tax assets 7.18 215,145,646 227,362,656
Other non-current assets
Total non-current assets 7,479,074,251 7,644,333,086
Total assets 12,821,273,302 13,171,506,378
Current liabilities:
Short-term loans 7.19 348,885,834 389,378,480
Borrowings from the Central Bank
Borrowing funds
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.20 417,210,497 503,323,746
Advances from customers
Contract liabilities 7.21 135,643,228 165,727,991
48
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note June 30, 2023 December 31, 2022
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.22 135,368,771 182,951,538
Taxes and dues payable 7.23 202,463,826 239,695,902
Other payables 7.24 373,745,618 372,608,689
Including: Interest payable 88,889
Dividends payable 393,855 70,317
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.25 143,764,399 144,020,834
Other current liabilities 7.26 17,687,656 18,945,706
Total current liabilities 1,774,769,829 2,016,652,886
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.27 81,961,226 128,112,115
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 7.28 94,469,356 109,505,093
Long-term accounts payable 7.29 20,000,000 42,000,000
Long-term employee remunerations payable
Estimated liabilities
Deferred income 7.30 34,530,599 38,389,058
Deferred income tax liabilities 7.18 8,934,155 11,266,932
Other non-current liabilities
Total non-current liabilities 239,895,336 329,273,198
Total liabilities 2,014,665,165 2,345,926,084
Owner’s equity:
Capital stock 7.31 685,464,000 685,464,000
Other equity instruments
49
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note June 30, 2023 December 31, 2022
Including: Preferred stock
Perpetual bonds
Capital surplus 7.32 524,548,552 524,968,760
Minus: Treasury stock
Other comprehensive income 7.33 -11,624,173 -23,760,238
Special reserves
Surplus reserves 7.34 342,732,000 342,732,000
General risk preparation
Undistributed profit 7.35 9,104,759,847 9,049,649,211
Total owner’s equities attributable to the parent company 10,645,880,226 10,579,053,733
Minority equity 160,727,911 246,526,561
Total owner’s equities 10,806,608,137 10,825,580,294
Total liabilities and owner’s equities 12,821,273,302 13,171,506,378
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note June 30, 2023 December 31, 2022
Current assets:
Monetary fund 768,805,339 874,241,771
Tradable financial assets
Derivative financial assets
Bills receivable 200,000
Accounts receivable 17.1 2,030,036 2,301,505
Receivables financing 24,742,972 41,061,417
Advance payment 364,240 3,518,783
Other receivables 17.2 504,925,159 720,176,320
Including: Interest receivable
Dividends receivable 103,544,695 250,000,000
Inventories 421,364,233 335,031,522
Contract assets
Assets held for sale
Non-current assets due within one year
50
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note June 30, 2023 December 31, 2022
Other current assets 13,408,491 20,080,844
Total current assets 1,735,840,470 1,996,412,162
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 17.3 7,684,192,789 7,705,853,378
Other investments in equity instruments
Other non-current financial assets
Investment real estate 21,041,320 22,115,318
Fixed assets 208,383,656 216,651,596
Construction in progress 375,969
Productive biological assets 103,686,699 108,370,882
Oil and gas assets
Right-of-use assets 39,031,011 36,153,799
Intangible assets 73,925,123 75,298,044
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred income tax assets 11,993,062 12,120,605
Other non-current assets 1,894,430,000 1,850,200,000
Total non-current assets 10,036,683,660 10,027,139,591
Total assets 11,772,524,130 12,023,551,753
Current liabilities:
Short-term loans 100,075,000 100,000,000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 70,184,984 100,583,550
Advances from customers
Contract liabilities
Employee remunerations payable 61,122,195 68,112,832
Taxes and dues payable 4,964,239 39,101,259
51
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note June 30, 2023 December 31, 2022
Other payables 464,911,457 499,751,275
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 5,850,588 5,129,607
Other current liabilities
Total current liabilities 707,108,463 812,678,523
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 39,997,656 38,757,167
Long-term accounts payable
Long-term employee remuneration payable
Estimated liabilities
Deferred income 444,505 877,814
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 40,442,161 39,634,981
Total liabilities 747,550,624 852,313,504
Owner’s equities:
Capital stock 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 560,853,535 560,182,235
Minus: Treasury stock
Other comprehensive income
Special reserves
Surplus reserves 342,732,000 342,732,000
Undistributed profit 9,435,923,971 9,582,860,014
Total owner’s equities 11,024,973,506 11,171,238,249
52
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note June 30, 2023 December 31, 2022
Total liabilities and owner’s equities 11,772,524,130 12,023,551,753
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of this period Sum of prior period
1. Total operating income 1,966,738,485 1,953,092,135
Including: Operating income 7.36 1,966,738,485 1,953,092,135
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1,528,483,622 1,493,458,867
Including: Operating costs 7.36 805,459,392 821,855,466
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of the withdrawn reserve fund
for insurance contract
Policy bonus payment
Amortized reinsurance expenditures
Taxes and surcharges 7.37 131,447,066 114,739,618
Selling expenses 7.38 453,001,710 417,764,419
Administrative expenses 7.39 128,695,395 127,504,270
Research and development expenses 7.40 6,653,626 5,509,656
Financial expenses 7.41 3,226,433 6,085,438
Including: Interest expenses 12,325,532 11,201,775
Interest income 9,060,578 10,191,697
Plus: Other profit 7.42 28,971,185 21,629,245
Investment profit (loss is listed with “-”) 7.43 15,614,536 -921,317
Including: Investment profit for joint-run business
-932,588 -921,317
and joint venture
Financial assets measured at amortized
cost cease to be recognized as income
53
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note Sum of this period Sum of prior period
Exchange income (loss is listed with “-”)
Net exposure hedge income (loss is listed with “-”)
Income from fair value changes (loss is listed
with “-”)
Credit impairment loss (loss is listed with “-”) 7.44 -993,494 486,076
Asset impairment loss (loss is listed with “-”) 7.45 -244,434 1,490,900
Income from asset disposal (loss is listed with “-”) 7.46 -298,401 -8,239,072
3. Operating profit (loss is listed with “-”) 481,304,255 474,079,100
Plus: Non-operating income 7.47 1,772,522 2,448,613
Minus: Non-operating expenses 7.48 2,125,945 1,343,532
4. Total profits (total loss is listed with “-”) 480,950,832 475,184,181
Minus: Income tax expenses 7.49 130,350,513 128,189,749
5. Net profit (net loss is listed with “-”) 350,600,319 346,994,432
5.1 Classification by operation continuity
5.1.1 Net profit from continuing operation (net loss is
350,600,319 346,994,432
listed with “-”)
5.1.2 Net profit from terminating operation (net loss
is listed with “-”)
5.2 Classification by ownership
5.2.1 Net profit attributable to owner of the parent
363,569,436 358,459,603
company
5.2.2 Minority interest income -12,969,117 -11,465,171
6. Net after-tax amount of other comprehensive income 7.50 13,707,142 -7,384,531
Net after-tax amount of other comprehensive income
12,136,065 -6,397,496
attributable to owner of the parent company
6.1 Other comprehensive income not to be reclassified
into profit and loss later
6.1.1 Changes after remeasuring and resetting
the benefit plans
6.1.2 Other comprehensive income not to be
reclassified into profit and loss under
equity method
6.1.3 Changes in the fair value of other
investments in equity instruments
6.1.4 Changes in the fair value of the enterprise’s
own credit risk
54
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note Sum of this period Sum of prior period
6.1.5 Other
6.2 Other comprehensive income to be reclassified into
12,136,065 -6,397,496
profit and loss later
6.2.1 Other comprehensive income to be
reclassified into profit and loss under
equity method
6.2.2 Changes in the fair value of other debt
investments
6.2.3 Amount of financial assets reclassified into
other comprehensive income
6.2.4 Provision for credit impairment of other
credit investments
6.2.5 Provision for cash-flow hedge
6.2.6 Difference in translation of Foreign
12,136,065 -6,397,496
Currency Financial Statement
6.2.7 Other
Net after-tax amount of other comprehensive income
1,571,077 -987,035
attributable to minority shareholders
7. Total comprehensive income 364,307,461 339,609,901
Attributable to owner of the parent company 375,705,501 352,062,107
Attributable to minority shareholders -11,398,040 -12,452,206
8. Earnings per share:
8.1 Basic earnings per share 0.53 0.52
8.2 Diluted earnings per share 0.53 0.52
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of this period Sum of prior period
1. Operating income 17.4 241,967,096 229,587,143
Minus: Operating costs 17.4 200,913,318 193,114,244
Taxes and surcharges 9,139,640 14,680,577
Selling expenses
Administrative expenses 19,481,354 20,654,280
Research and development expenses 533,807 529,139
55
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note Sum of this period Sum of prior period
Financial expenses -753,987 -1,835,540
Including: Interest expenses 2,862,882 2,152,536
Interest income 4,368,355 3,670,286
Plus: Other profit 774,925 893,236
Investment profit (loss is listed with “-”) 17.5 149,080,018 328,290,041
Including: Investment profit for joint-run
54,934 -26,539
business and joint venture
Financial assets measured at
amortized cost cease to be
recognized as income (loss is
listed with “-”)
Net exposure hedge income (loss is listed
with “-”)
Income from fair value changes (loss is listed
with “-”)
Credit impairment loss (loss is listed with “-”) -3,661
Asset impairment loss (loss is listed with “-”)
Income from asset disposal (loss is listed
-639,633 30,882
with “-”)
2. Operating profit (loss is listed with “-”) 161,864,613 331,658,602
Plus: Non-operating income 167,110 106,249
Minus: Non-operating expenses 914,209 325,220
3. Total profits (total loss is listed with “-”) 161,117,514 331,439,631
Minus: Income tax expenses -405,243 2,624,240
4. Net profit (net loss is listed with “-”) 161,522,757 328,815,391
4.1 Net profit from continuing operation (net loss is
161,522,757 328,815,391
listed with “-”)
4.2 Net profit from terminating operation (net loss is
listed with “-”)
5. Net after-tax amount of other comprehensive income
5.1 Other comprehensive income not to be
reclassified into profit and loss later
5.1.1 Changes after remeasuring and resetting
the benefit plans
5.1.2 Other comprehensive income not to be
reclassified into profit and loss under
56
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note Sum of this period Sum of prior period
equity method
5.1.3 Changes in the fair value of other
investments in equity instruments
5.1.4 Changes in the fair value of the
enterprise’s own credit risk
5.1.5 Other
5.2 Other comprehensive income to be reclassified
into profit and loss later
5.2.1 Other comprehensive income to be
reclassified into profit and loss under
equity method
5.2.2 Changes in the fair value of other debt
investments
5.2.3 Amount of financial assets reclassified
into other comprehensive income
5.2.4 Provision for credit impairment of other
credit investments
5.2.5 Provision for cash-flow hedge
5.2.6 Difference in translation of Foreign
Currency Financial Statement
5.2.7 Other
6. Total comprehensive income 161,522,757 328,815,391
7. Earnings per share:
7.1 Basic earnings per share 0.24 0.48
7.2 Diluted earnings per share 0.24 0.48
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of this period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of
2,065,105,263 2,087,979,514
services
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial
57
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note Sum of this period Sum of prior period
institutions
Cash received from receiving insurance premium
of original insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment
funds
Cash received from collecting interest, handling
fees and commissions
Net increase in borrowing funds
Net increase in repurchasement business funds
Net cash received for buying and selling securities
Tax refund received 29,311,454 165,095,342
Other cash received related to operating activities 7.52 47,251,102 30,136,317
Subtotal of cash flows of operating activities 2,141,667,819 2,283,211,173
Cash paid for goods and services 622,088,864 636,965,411
Net increase in customer loans and advances
Net increase in deposits in central bank and interbank
deposits
Cash paid to original insurance contract payments
Net increase in lending funds
Cash paid to interest, handling fees and commissions
Cash paid to policy bonus
Cash paid to and on behalf of employees 241,778,846 266,617,445
Cash paid for taxes and expenses 457,071,706 482,260,853
Other cash paid related to operating activities 7.52 292,808,617 291,093,869
Sub-total of cash outflows of operating activities 1,613,748,033 1,676,937,578
Net cash flow from operating activities 527,919,786 606,273,595
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 6,000,000 86,000,000
Cash received from obtaining investment income
Cash received from obtaining interest income 167,919 474,434
Cash received from disposal of fixed assets,
1,431,000 24,186,808
intangible assets and other long-term assets
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note Sum of this period Sum of prior period
Net cash received from disposal of branch and other
7,238,585
business unit
Other cash received related to investing activities 657,049
Subtotal of cash flows of investment activities 15,494,553 110,661,242
Cash paid to acquire fixed assets, intangible assets
60,515,887 106,892,064
and other long-term assets
Cash for investment 206,000,000 86,000,000
Cash paid for purchasing fixed deposits
Net increase in hypothecated loan
Net cash paid for acquiring branch and other
business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 266,515,887 192,892,064
Net cash flow from investing activities -251,021,334 -82,230,822
3. Cash flow from financing activities
Cash received from acquiring investment 13,900,832
Including: cash received from acquiring minority
shareholders investment by branch
Cash received from acquiring loans 295,974,371 428,548,896
Other cash received related to financing activities
Subtotal cash flows of financing activities 309,875,203 428,548,896
Cash paid for paying debts 419,615,315 590,123,879
Cash paid for distributing dividend and profit or
319,861,482 15,360,912
paying interest
Including: dividend and profit paid to minority
70,317 1,793,435
shareholders by branch
Other cash paid related to financing activities 38,007,700 9,765,810
Subtotal of cash outflows of financing activities 777,484,497 615,250,601
Net cash flow from financing activities -467,609,294 -186,701,705
4. Influences of exchange rate fluctuation on cash and
1,038,021 188,837
cash equivalents
5. Net Increase in cash and cash equivalents -189,672,821 337,529,905
Plus: balance at the beginning of the period of cash
1,612,753,600 1,502,327,029
and cash equivalents
6. Balance at the end of the period of cash and cash 1,423,080,779 1,839,856,934
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Note Sum of this period Sum of prior period
equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.6 Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Sum of this period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 245,770,806 264,608,586
Tax refund received
Other cash received related to operating activities 10,820,471 53,941,562
Subtotal of cash flows of operating activities 256,591,277 318,550,148
Cash paid for goods and services 204,180,816 149,862,593
Cash paid to and on behalf of employees 22,218,740 28,951,681
Cash paid for taxes and expenses 43,953,062 22,087,575
Other cash paid related to operating activities 76,577,506 12,091,557
Sub-total of cash outflows of operating activities 346,930,124 212,993,406
Net cash flow from operating activities -90,338,847 105,556,742
2. Cash flow from investing activities:
Cash received from disinvestment 27,690,000
Cash received from withdrawal of fixed deposits 86,000,000
Cash received from obtaining investment income 325,390,390 321,605,820.39
Cash received from obtaining interest income 167,919 474,433.61
Net cash received from disposal of fixed assets, intangible assets
31,808
and other long-term assets
Net cash received from disposal of branch and other business
unit
Other cash received related to investing activities 302,000,000
Subtotal of cash flows of investment activities 353,248,309 710,112,062
Cash paid to acquiring fixed assets, intangible assets and other
3,845,079 5,975,121
long-term assets
Cash for investment 20,161,100 110,000,000
Cash paid for purchasing fixed deposits 206,000,000 86,000,000
Net cash paid for acquiring branch and other business unit
Other cash paid related to investment activities 44,230,000 35,700,000
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Sum of this period Sum of prior period
Subtotal of cash outflows of investment activities 274,236,179 237,675,121
Net cash flow from investing activities 79,012,130 472,436,941
3. Cash flow from financing activities:
Cash received from acquiring investment 13,900,832
Cash received from acquiring loans 100,000,000 100,000,000
Other cash received related to financing activities
Subtotal cash flows of financing activities 113,900,832 100,000,000
Cash paid for debts 100,000,000 150,000,000
Cash paid to distribute dividend, profit or pay interest 310,002,967 2,387,083
Other cash paid related to financing activities 4,567,148 4,517,699
Subtotal of cash outflows of financing activities 414,570,115 156,904,782
Net cash flow from financing activities -300,669,283 -56,904,782
4. Influences of exchange rate fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash equivalents -311,996,000 521,088,901
Plus: balance at the beginning of the period of cash and cash
843,369,997 513,809,440
equivalents
6. Balance at the end of the period of cash and cash equivalents 531,373,997 1,034,898,341
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
2.7 Consolidated owner’s equity changing list
Unit: Yuan
This period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive Other Subtotal equity
stock bonds
Other reserves
stock income
reserves reserves preparation profits equity
1. Balance at the end of last year 685,464,000 524,968,760 -23,760,238 342,732,000 9,049,649,211 10,579,053,733 246,526,561 10,825,580,294
Plus: Accounting policies changing
Previous error correction
Business combination under common
control
Other
2. Balance at the beginning of this year 685,464,000 524,968,760 -23,760,238 342,732,000 9,049,649,211 10,579,053,733 246,526,561 10,825,580,294
3. Increased or decreased amount in this
period (reducing amount is listed with -420,208 12,136,065 55,110,636 66,826,493 -85,798,650 -18,972,157
“-”)
3.1 Total comprehensive income 12,136,065 363,569,436 375,705,501 -11,398,040 364,307,461
3.2 Owners’ invested and reduced
-420,208 -420,208 -74,006,755 -74,426,963
capital
3.2.1 Owner’ invested common stock -42,351,486 -42,351,486
3.2.2 Other equity instrument holders’
invested capital
3.2.3 Amount of shares paid and
671,300 671,300 671,300
reckoned in owners’ equity
3.2.4 Other -1,091,508 -1,091,508 -31,655,269 -32,746,777
3.3 Profit distribution -308,458,800 -308,458,800 -393,855 -308,852,655
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk preparation
3.3.3 Distribution to owners (or
-308,458,800 -308,458,800 -393,855 -308,852,655
shareholders)
3.3.4 Other
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
This period
Owners’ equity of the parent company
Other equity instruments Minority
Item Minus: Other Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive Other Subtotal equity
stock
Other reserves
stock income
reserves reserves preparation profits equity
bonds
3.4 Internal transfer of owners’ equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over
from the benefit plan variation
3.4.5 Retained earnings carried over
from other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 524,548,552 -11,624,173 342,732,000 9,104,759,847 10,645,880,226 160,727,911 10,806,608,137
Unit: Yuan
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
stock bonds
Other reserves
stock income
reserves reserves preparation profits equity
1. Balance at the end of last year 685,464,000 524,968,760 -34,707,177 342,732,000 8,929,426,600 10,447,884,183 244,792,421 10,692,676,604
Plus: Accounting policies changing
Previous error correction
Business combination under common
control
Other
2. Balance at the beginning of this year 685,464,000 524,968,760 -34,707,177 342,732,000 8,929,426,600 10,447,884,183 244,792,421 10,692,676,604
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
stock bonds
Other reserves
stock income
reserves reserves preparation profits equity
3. Increased or decreased amount in this
period (reducing amount is listed with 10,946,939 120,222,611 131,169,550 1,734,140 132,903,690
“-”)
3.1 Total comprehensive income 10,946,939 428,681,411 439,628,350 4,002,909 443,631,259
3.2 Owners’ invested and reduced
capital
3.2.1 Owner’ invested common stock
3.2.2 Other equity instrument holders’
invested capital
3.2.3 Amount of shares paid and
reckoned in owners’ equity
3.2.4 Other
3.3 Profit distribution -308,458,800 -308,458,800 -2,268,769 -310,727,569
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk preparation
3.3.3 Distribution to owners (or
-308,458,800 -308,458,800 -2,268,769 -310,727,569
shareholders)
3.3.4 Other
3.4 Internal transfer of owners’ equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over
from the benefit plan amount
3.4.5 Retained earnings carried over
from other comprehensive income
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
stock bonds
Other reserves
stock income
reserves reserves preparation profits equity
3.4.6 Other
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 524,968,760 -23,760,238 342,732,000 9,049,649,211 10,579,053,733 246,526,561 10,825,580,294
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
This period
Other equity instruments Minus: Other
Item Capital Special Surplus Undistributed Total owners’
Capital stock Preferred Perpetual Treasury comprehensive Other
Other reserves reserves reserves profits equity
stock bonds stock income
1. Balance at the end of last year 685,464,000 560,182,235 342,732,000 9,582,860,014 11,171,238,249
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685,464,000 560,182,235 342,732,000 9,582,860,014 11,171,238,249
3. Increased or decreased amount in this
period (reducing amount is listed with 671,300 -146,936,043 -146,264,743
“-”)
3.1 Total comprehensive income 161,522,757 161,522,757
3.2 Owners’ invested and reduced capital 671,300 671,300
3.2.1 Owners’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and
671,300 671,300
reckoned in owners’ equity
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
This period
Other equity instruments Minus: Other
Item Capital Special Surplus Undistributed Total owners’
Capital stock Preferred Perpetual Treasury comprehensive Other
Other reserves reserves reserves profits equity
stock bonds stock income
3.2.4 Other
3.3 Profit distribution -308,458,800 -308,458,800
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
-308,458,800 -308,458,800
shareholders)
3.3.3 Other
3.4 Internal transfer of owners’ equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over from
the benefit plan amount
3.4.5 Retained earnings carried over from
other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 560,853,535 342,732,000 9,435,923,971 11,024,973,506
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Unit: Yuan
Last period
Item Other equity instruments Minus: Other
Capital Special Surplus Undistributed Total owners’
Capital stock Perpetual Treasury comprehensive Other
Preferred
Other reserves reserves reserves profits equity
stock bonds stock income
1. Balance at the end of last year 685,464,000 560,182,235 342,732,000 9,141,561,665 10,729,939,900
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685,464,000 560,182,235 342,732,000 9,141,561,665 10,729,939,900
3. Increased or decreased amount in this
441,298,349 441,298,349
period (reducing amount is listed with “-”)
3.1 Total comprehensive income 749,757,149 749,757,149
3.2 Owners’ invested and reduced capital
3.2.1 Owners’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and reckoned
in owners’ equity
3.2.4 Other
3.3 Profit distribution -308,458,800 -308,458,800
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
-308,458,800 -308,458,800
shareholders)
3.3.3 Other
3.4 Internal transfer of owners’ equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over from
the benefit plan amount
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Last period
Item Other equity instruments Minus: Other
Capital Special Surplus Undistributed Total owners’
Capital stock Perpetual Treasury comprehensive Other
Preferred
Other reserves reserves reserves profits equity
stock bonds stock income
3.4.5 Retained earnings carried over from
other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 560,182,235 342,732,000 9,582,860,014 11,171,238,249
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
3. Company profile
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company” or the “Joint-stock Company”) was
incorporated as a joint-stock limited company in accordance with the Company Law of the
People’s Republic of China (the “PRC”) in the merger and reorganization carried out by
Yantai Changyu Group Co., Ltd. (“Changyu Group”) with its assets and liabilities in relation
to wine business. The Company and its subsidiary companies (hereinafter collectively
referred to as the “Group”) are engaged in the production and sale of wine, brandy and
sparkling wine, planting and purchase of grapes, development of tourism resources, etc. The
registered address of the Company is Yantai City, Shandong Province, and the office address
of the headquarters is 56 Dama Road, Zhifu District, Yantai City, Shandong Province.
As at June 30, 2023, the Company issued 685,464,000 shares accumulatively. Refer to Note
7.31 for details.
The parent company of the Group is Changyu Group incorporated in China, which was
ultimately and actually controlled by four parties, including Yantai Guofeng Investment
Holding Co., Ltd., ILLVA Saronno Holding Spa, International Finance Corporation and Yantai
Yuhua Investment & Development Co., Ltd.
The financial statement and the consolidated financial statement of the Company were
approved by the Board of Directors on August 29, 2023.
The details of scope of the consolidated financial statement in this period can be seen in Note
8 “Equity in other entities”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Company prepares the financial statement on the basis of continuous operation.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30,
2023, and no issues or situations causing major doubts to this ability are found. Therefore, this
financial statement is prepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of Accounting Standards for Business
Enterprises (ASBE) issued by the Ministry of Finance and gives a true and integrated view of
the consolidated financial status and the financial status as at June 30, 2023, as well as the
consolidated operating result, the operating result, the consolidated cash flow and the cash
flow of the Company from January to June 2023.
In addition, the financial statement of the Company also complies with the related disclosure
requirements for statement and its notes stipulated by Preparation Rules for Information
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on
Financial Reports (2014 Revision) by the China Securities Regulatory Commission
(hereinafter referred to as the “CSRC”).
5.2 Accounting period
The accounting year is from January 1 to December 31 in Gregorian calendar.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for
processing to the cash or cash equivalent is realized. The operating cycle of the Company is
12 months.
5.4 Recording currency
Since Renminbi (RMB) is the currency of the main economic environment in which the
Company and the domestic subsidiary companies thereof are situated, the Company and the
subsidiary companies thereof adopt RMB as the recording currency. The overseas subsidiary
companies thereof determine EUR, CLP and AUD as the recording currency according to the
main economic environment in which they are situated. The currency in this financial
statement prepared by the Group is RMB.
5.5 Accounting treatment method for business combination under common control and
non-common control
5.5.1 Business combination under common control
A business combination under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or same multiple parties
before and after the combination, and that control is not transitory. The assets and liabilities
obtained by the combining party in the business combination shall be measured on the basis
of the carrying amount in the ultimate controlling party's consolidated financial statement as
at the combination date. Where there is a difference between the carrying amount of the net
assets acquired and the carrying amount of the combination consideration paid (or the total
par value of the shares issued), the stock premium in capital surplus shall be adjusted. If the
stock premium in capital surplus is not sufficient to offset, the retained earnings shall be
adjusted. The direct related expenses incurred for the business combination shall be included
in the current profit and loss when incurred. The combination date is the date on which the
combining party actually obtains control of the combined party.
5.5.2 Business combination under non-common control
A business combination under non-common control is a business combination in which all of
the combining parties are not ultimately controlled by the same party or same multiple parties
before and after the combination. The sum of fair values of the assets paid by the Group, as
the acquirer, (including the acquiree’s equity the Group held before the acquisition date),
liabilities incurred or assumed, and the equity securities issued on the acquisition date in
exchange for the control over the acquiree, deducts the fair value of the acquiree’s identifiable
net assets acquired in the combination on the acquisition date. If the difference is positive, it
shall be recognized as goodwill; and if it is negative, it shall be included in the current profit
and loss. All the identifiable assets, liabilities and contingent liabilities which are obtained
from the acquiree and meet the recognition conditions shall be confirmed by the Group on the
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
acquisition date according to the fair value thereof. The acquisition date is the date on which
the acquirer actually obtains control of the acquiree.
For a business combination involving entities not under common control and achieved in
stages, the Group remeasures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognises any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. In addition, any amount recognised in other comprehensive income that may be
reclassified to profit or loss, in prior reporting periods relating to the previously-held equity
interest, and any other changes in the owners’ equity under equity accounting, are transferred
to investment income in the period in which the acquisition occurs. If equity interests of the
acquiree held before acquisition-date were equity instrument investments measured at fair
value through other comprehensive income, other comprehensive income recognised shall be
moved to retained earnings on acquisition-date.
5.6 Compiling methods of consolidated financial statement
5.6.1 General principles
The scope of consolidated financial statements is based on control and the consolidated
financial statements comprise the Company and its subsidiaries. Control exists when the
investor has all of following: power over the investee; exposure, or rights, to variable returns
from its involvement with the investee and has the ability to affect those returns through its
power over the investee. When assessing whether the Group has power, only substantive
rights (held by the Group and other parties) are considered. The financial position, financial
performance and cash flows of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet within
shareholders’ equity. Net profit or loss attributable to non-controlling shareholders is
presented separately in the consolidated income statement below the net profit line item. Total
comprehensive income attributable to non-controlling shareholders is presented separately in
the consolidated income statement below the total comprehensive income line item.
When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the opening
owners’ equity of the subsidiary, the excess is still allocated against the non-controlling
interests.
When the accounting period or accounting policies of a subsidiary are different from those of
the Company, the Company makes necessary adjustments to the financial statements of the
subsidiary based on the Company’s own accounting period or accounting policies. Intra-group
balances and transactions, and any unrealised profit or loss arising from intra-group
transactions, are eliminated when preparing the consolidated financial statements. Unrealised
losses resulting from intra-group transactions are eliminated in the same way as unrealised
gains, unless they represent impairment losses that are recognised in the financial statements.
5.6.2 Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business combination
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
involving entities under common control, the financial statements of the subsidiary are
included in the consolidated financial statements based on the carrying amounts of the assets
and liabilities of the subsidiary in the financial statements of the ultimate controlling party as
if the combination had occurred at the date that the ultimate controlling party first obtained
control. The opening balances and the comparative figures of the consolidated financial
statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business combination
involving entities not under common control, the identifiable assets and liabilities of the
acquired subsidiaries are included in the scope of consolidation from the date that control
commences, based on the fair value of those identifiable assets and liabilities at the
acquisition date.
5.6.3 Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses are
recognised as investment income for the current period. The remaining equity investment is
re-measured at its fair value at the date when control is lost, any resulting gains or losses are
also recognised as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages, the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;
- one arrangement considered on its own is not economically justified, but it is
economically justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in subsidiaries
where control is retained.
If each of the multiple transactions forms part of a bundled transaction which eventually
results in the loss of control in the subsidiary, these multiple transactions are accounted for as
a single transaction. In the consolidated financial statements, the difference between the
consideration received and the corresponding proportion of the subsidiary’s net assets
(calculated continuously from the acquisition date) in each transaction prior to the loss of
control shall be recognised in other comprehensive income and transferred to profit or loss
when the parent eventually loses control of the subsidiary.
5.6.4 Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without a change in control,
the difference between the proportion interests of the subsidiary’s net assets being acquired or
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disposed and the amount of the consideration paid or received is adjusted to the capital
reserve (share premium) in the consolidated balance sheet, with any excess adjusted to
retained earnings.
5.7 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposit, and short-term highly
liquid investments which are readily convertible into known amount of cash with an
insignificant risk of changes in value.
5.8 Foreign currency transaction and foreign currency statement translation
When the Group receives capital in foreign currencies from investors, the capital is translated
to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency
transactions are, on initial recognition, translated to Renminbi at the spot exchange rates.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognised in profit or loss, unless they arise from the re-translation of the principal and
interest of specific borrowings for the acquisition and construction of qualifying assets.
Non-monetary items that are measured at historical cost in foreign currencies are translated to
Renminbi using the exchange rate at the transaction date.
In translating the financial statements of a foreign operation, assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.
Equity items, excluding retained earnings and the translation differences in other
comprehensive income, are translated to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses in the income statement are translated to Renminbi at
the spot exchange rates at the transaction dates. The resulting translation differences are
recognised in other comprehensive income. The translation differences accumulated in other
comprehensive income with respect to a foreign operation are transferred to profit or loss in
the period when the foreign operation is disposed.
5.9 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equity
securities other than those classified as long-term equity investments, receivables, payables,
loans and borrowings and share capital.
5.9.1 Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognised in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.
A financial asset (unless it is a trade receivable without a significant financing component)
and financial liability is measured initially at fair value. For financial assets and financial
liabilities at fair value through profit or loss, any related directly attributable transaction costs
are charged to profit or loss; for other categories of financial assets and financial liabilities,
any related directly attributable transaction costs are included in their initial costs.
Accounts receivable containing no significant financing component or not considering
financing component of contracts that do not exceed one year are measured initially at
transaction prices determined by the accounting policies set out in Note 5.22.
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5.9.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which a
financial asset is managed and its contractual cash flow characteristics. On initial recognition,
a financial asset is classified as measured at amortised cost, at fair value through other
comprehensive income (“FVOCI”), or at fair value through profit or loss (“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets in which case all affected financial
assets are reclassified on the first day of the first reporting period following the change in the
business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and
is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is
not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an investment-by-investment basis. The
instrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI as described above
are measured at FVTPL. On initial recognition, the Group may irrevocably designate a
financial asset that otherwise meets the requirements to be measured at amortised cost or at
FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.
The business model refers to how the Group manages its financial assets in order to generate
cash flows. That is, the Group’s business model determines whether cash flows will result
from collecting contractual cash flows, selling financial assets or both. The Group determines
the business model for managing the financial assets according to the facts and based on the
specific business objective for managing the financial assets determined by the Group’s key
management personnel.
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In assessing whether the contractual cash flows are solely payments of principal and interest,
the Group considers the contractual terms of the instrument. For the purposes of this
assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.
‘Interest’ is defined as consideration for the time value of money and for the credit risk
associated with the principal amount outstanding during a particular period of time and for
other basic lending risks and costs, as well as a profit margin. The Group also assesses
whether the financial asset contains a contractual term that could change the timing or amount
of contractual cash flows such that it would not meet this condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses, including
any interest or dividend income, are recognised in profit or loss unless the financial assets are
part of a hedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method.
A gain or loss on a financial asset that is measured at amortised cost and is not part of a
hedging relationship shall be recognised in profit or loss when the financial asset is
derecognized and reclassified, through the amortisation process or in order to recognise
impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the
effective interest method, impairment and foreign exchange gains and losses are recognised in
profit or loss. Other net gains and losses are recognised in other comprehensive income. On
derecognition, gains and losses accumulated in other comprehensive income are reclassified
to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in
profit or loss. Other net gains and losses are recognised in other comprehensive income. On
derecognition, gains and losses accumulated in other comprehensive income are reclassified
to retained earnings.
5.9.3 Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost by the Group.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
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derivative financial liability) or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses, including any interest expense, are recognised in profit or loss, unless the financial
liabilities are part of a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective
interest method.
5.9.4 Offsetting
Financial assets and financial liabilities are generally presented separately in the balance sheet,
and are not offset. However, a financial asset and a financial liability are offset and the net
amount is presented in the balance sheet when both of the following conditions are satisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；
- The Group intends either to settle on a net basis, or to realise the financial asset and settle
the financial liability simultaneously.
5.9.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or；
- the financial asset has been transferred, although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset, it does not retain
control over the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the
difference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and, when the transferred
financial asset is a debt investment at FVOCI, any cumulative gain or loss that has been
recognised directly in other comprehensive income for the part derecognised.
The Group derecognises a financial liability (or part of it) only when its contractual obligation (or part
of it) is extinguished.
5.9.6 Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
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- financial investments at fair value through other comprehensive income
Financial assets measured at fair value, including debt investments or equity securities at
FVPL, equity securities designated at FVOCI and derivative financial assets, are not subject
to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity
in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 months after the balance sheet date (or a shorter period if the expected life of the
instrument is less than 12 months).
For accounts receivable, loss allowance always measured at an amount equal to lifetime ECLs.
ECLs on these financial assets are estimated using a provision matrix based on the Group’s
historical credit loss experience, adjusted for factors that are specific to the debtors and an
assessment of both the current and forecast general economic conditions at the balance sheet
date.
For assets other than accounts receivable that meet one of the following conditions, loss
allowance are measured at an amount equal to 12-month ECLs. For all other financial
instruments, the Group recognises a loss allowance equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.
Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a
low risk of default, the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and adverse changes in economic and business conditions in the
longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its
contractual cash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since
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initial recognition, the Group compares the risk of default occurring on the financial
instrument assessed at the balance sheet date with that assessed at the date of initial
recognition.
When determining whether the credit risk of a financial asset has increased significantly since
initial recognition and when estimating ECL, the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort, including
forward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument’s external or
internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological, market, economic or legal environment
that have a significant adverse effect on the debtor’s ability to meet its obligation to the
Group.
Depending on the nature of the financial instruments, the assessment of a significant increase
in credit risk is performed on either an individual basis or a collective basis. When the
assessment is performed on a collective basis, the financial instruments are grouped based on
shared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than 30 days past due.
Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried at amortised
cost and debt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’
when one or more events that have a detrimental impact on the estimated future cash flows of
the financial asset have occurred. Evidence that a financial asset is credit-impaired includes
the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract, such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty, the
Group having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for that financial asset because of financial
difficulties.
Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is recognised
as an impairment gain or loss in profit or loss. The Group recognises an impairment gain or
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loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account, except for debt investments that are measured at FVOCI,
for which the loss allowance is recognised in other comprehensive income.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However, financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of
amounts due.
Subsequent recoveries of an asset that was previously written off are recognised as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
5.9.7 Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is
recognised in shareholders’ equity. Consideration and transaction costs paid by the Company
for repurchasing self-issued equity instruments are deducted from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasury shares. All
expenditure relating to the repurchase is recorded in the cost of the treasury shares, with the
transaction recording in the share register. Treasury shares are excluded from profit
distributions and are presented as a deduction under shareholders’ equity in the balance sheet.
5.10 Inventories
5.10.1 Classification and cost
Inventories include raw materials, work in progress and reusable materials. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase, costs of
conversion and other expenditure incurred in bringing the inventories to their present location
and condition. In addition to the purchase cost of raw materials, work in progress and finished
goods include direct labour costs and an appropriate allocation of production overheads.
Agricultural products harvested are reported in accordance with the Accounting Standard for
Business Enterprises No. 1 - Inventories.
5.10.2 Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are amortised when
they are used. The amortisation charge is included in the cost of the related assets or
recognised in profit or loss for the current period.
5.10.3 Basis for determining the net realisable value and method for provision for
obsolete inventories
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At the balance sheet date, inventories are carried at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and relevant
taxes. The net realisable value of materials held for use in the production is measured based
on the net realisable value of the finished goods in which they will be incorporated. The net
realisable value of the inventory held to satisfy sales or service contracts is measured based on
the contract price, to the extent of the quantities specified in sales contracts, and the excess
portion of inventories is measured based on general selling prices.
Any excess of the cost over the net realisable value of each item of inventories is recognised
as a provision for impairment, and is recognised in profit or loss.
5.10.4 Inventory count system
The Group maintains a perpetual inventory system.
5.11 Long-term equity investments
5.11.1 Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combination
involving entities under common control is the Company’s share of the carrying amount of
the subsidiary’s equity in the consolidated financial statements of the ultimate controlling
party at the combination date. The difference between the initial investment cost and the
carrying amount of the consideration given is adjusted to the share premium in the capital
reserve, with any excess adjusted to retained earnings. For a long-term equity investment in a
subsidiary acquired through a business combination achieved in stages which do not form a
bundled transaction and involving entities under common control, the Company determines
the initial cost of the investment in accordance with the above policies. The difference
between this initial cost and the sum of the carrying amount of previously-held investment
and the consideration paid for the shares newly acquired is adjusted to capital premium in the
capital reserve, with any excess adjusted to retained earnings.
- For a long-term equity investment obtained through a business combination not involving
enterprises under common control, the initial cost comprises the aggregate of the fair value of
assets transferred, liabilities incurred or assumed, and equity securities issued by the Company,
in exchange for control of the acquiree. For a long-term equity investment obtained through a
business combination not involving entities under common control and achieved through
multiple transactions in stages which do not form a bundled transaction, the initial cost
comprises the carrying amount of the previously-held equity investment in the acquiree
immediately before the acquisition date, and the additional investment cost at the acquisition
date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is
initially recognised at the amount of cash paid if the Group acquires the investment by cash,
or at the fair value of the equity securities issued if an investment is acquired by issuing
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equity securities.
5.11.2 Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in subsidiaries
are accounted for using the cost method unless the investment is classified as held for sale.
Except for cash dividends or profit distributions declared but not yet distributed that have
been included in the price or consideration paid in obtaining the investments, the Company
recognises its share of the cash dividends or profit distributions declared by the investee as
investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less accumulated
impairment losses.
For the impairment of the investments in subsidiaries, refer to Note 5.20.
In the Group’s consolidated financial statements, subsidiaries are accounted for in accordance
with the policies described in Note 5.6.
(b) Investments in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control and
rights to the net assets of the arrangement.
An associate is an enterprise the Group can exert significant influence on.
A long-term equity investment in a joint venture and associate is accounted for using the
equity method for subsequent measurement, unless the investment is classified as held for
sale.
The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest in the
fair value of the investee’s identifiable net assets at the date of acquisition, the investment is
initially recognised at cost. Where the initial investment cost is less than the Group’s interest
in the fair value of the investee’s identifiable net assets at the date of acquisition, the
investment is initially recognised at the investor’s share of the fair value of the investee’s
identifiable net assets, and the difference is recognised in profit or loss.
- After the acquisition of the investment in joint ventures and associates, the Group
recognises its share of the investee’s profit or loss and other comprehensive income as
investment income or losses and other comprehensive income respectively, and adjusts the
carrying amount of the investment accordingly. Once the investee declares any cash dividends
or profit distributions, the carrying amount of the investment is reduced by the amount
attributable to the Group. Changes in the Group’s share of the investee’s owners’ equity, other
than those arising from the investee’s net profit or loss, other comprehensive income or profit
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distribution (referred to as “other changes in owners’ equity”), is recognised directly in the
Group’s equity, and the carrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive income
and other changes in owners’ equity, the Group recognises investment income and other
comprehensive income after making appropriate adjustments to align the accounting policies
or accounting periods with those of the Group based on the fair value of the investee’s
identifiable net assets at the date of acquisition. Unrealised profits and losses resulting from
transactions between the Group and its associates or joint ventures are eliminated to the extent
of the Group’s interest in the associates or joint ventures. Unrealised losses resulting from
transactions between the Group and its associates or joint ventures are eliminated in the same
way as unrealised gains but only to the extent that there is no impairment.
- The Group discontinues recognising its share of further losses of the investee after the
carrying amount of the long-term equity investment and any long-term interest that in
substance forms part of the Group’s net investment in the associate is reduced to zero, except
to the extent that the Group has an obligation to assume additional losses. If the joint venture
or the associate subsequently reports net profits, the Group resumes recognising its share of
those profits only after its share of the profits equals the share of losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to Note 5.20.
5.11.3 Criteria for determining the existence of joint control and significant impact over
an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about the relevant activities (activities with significant impact on the
returns of the arrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group can exercise
joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related
activities unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the
unanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy decisions
of an investee but does not have control or joint control over those policies.
5.12 Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost model and
stated in the balance sheet at cost less accumulated depreciation, amortisation and impairment
losses, and adopts a depreciation or amortisation policy for the investment property which is
consistent with that for buildings or land use rights, unless the investment property is
classified as held for sale. For the impairment of the investment properties, refer to Note 5.20.
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Estimated useful life Residual value Annual depreciation
Category
(years) rate (%) rate (%)
Plant and buildings 20-40 years 0 - 5% 2.4%-5.0%
5.13 Fixed assets
5.13.1 Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods,
supply of services, for rental or for administrative purposes with useful lives over one
accounting year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any
directly attributable expenditure for bringing the asset to working condition for its intended
use. The cost of self-constructed assets is measured in accordance with the policy set out in
Note 5.14.
Where the parts of an item of fixed assets have different useful lives or provide benefits to the
Group in a different pattern, thus necessitating use of different depreciation rates or methods,
each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets are
recognised as assets when it is probable that the economic benefits associated with the costs
will flow to the Group, and the carrying amount of the replaced part is derecognised. The
costs of the day-to-day maintenance of fixed assets are recognised in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
5.13.2 Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairment losses,
is depreciated using the straight-line method over its estimated useful life, unless the fixed
asset is classified as held for sale.
The estimated useful lives, residual value rates and annual depreciation rates of each class of
fixed assets are as follows:
Estimated useful Residual value Annual depreciation
Class
life (years) rate (%) rate (%)
Plant and buildings 20-40 years 0 - 5% 2.4%-5.0%
Machinery equipment 5-30 years 0 - 5% 3.2%-20.0%
Motor vehicles 4-12 years 0 - 5% 7.9%-25.0%
Useful lives, estimated residual values and depreciation methods are reviewed at least at each
year-end.
5.13.3 For the impairment of the fixed assets, refer to Note 5.20.
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5.13.4 Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are determined
as the difference between the net disposal proceeds and the carrying amount of the item, and
are recognised in profit or loss on the date of retirement or disposal.
5.14 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalised
borrowing costs, and any other costs directly attributable to bringing the asset to working
condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixed asset
when it is ready for its intended use. No depreciation is provided against construction in
progress.
Construction in progress is stated in the balance sheet at cost less accumulated impairment
losses (see Note 5.20).
If an enterprise sells products or by-products produced by fixed assets before they reach their
intended usable state to the outside parties, in accordance with the provisions of Accounting
Standards for Business Enterprises No. 14 – Revenue and Accounting Standards for Business
Enterprises No. 1 – Inventories, relevant income and costs shall be accounted for separately
and included in profit or loss for the current period
5.15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition, and construction or
production of a qualifying asset are capitalised as part of the cost of the asset. Other
borrowing costs are recognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of any
discount or premium on borrowing) to be capitalised in each accounting period is determined
as follows:
- Where funds are borrowed specifically for the acquisition and construction or production
of a qualifying asset, the amount of interest to be capitalised is the interest expense calculated
using effective interest rates during the period less any interest income earned from depositing
the borrowed funds or any investment income on the temporary investment of those funds
before being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisition
and construction or production of a qualifying asset, the amount of borrowing costs eligible
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for capitalisation is determined by applying a capitalisation rate to the weighted average of the
excess amounts of cumulative expenditure on the asset over the above amounts of specific
borrowings. The capitalisation rate is the weighted average of the interest rates applicable to
the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or, when appropriate, a shorter period to
the initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and interest on a
specific-purpose borrowing denominated in foreign currency are capitalised as part of the cost
of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognised as a
financial expense when incurred.
The capitalisation period is the period from the date of commencement of capitalisation of
borrowing costs to the date of cessation of capitalisation, excluding any period over which
capitalisation is suspended. Capitalisation of borrowing costs commences when expenditure
for the asset is being incurred, borrowing costs are being incurred and activities of acquisition,
construction or production that are necessary to prepare the asset for its intended use are in
progress, and ceases when the assets become ready for their intended use. Capitalisation of
borrowing costs should cease when the qualifying asset being constructed or produced has
reached its expected usable or saleable condition. Capitalisation of borrowing costs is
suspended when the acquisition, construction or production activities are interrupted
abnormally for a period of more than three months.
5.16 Biological assets
The biological assets of the Group are productive biological assets.
Productive biological assets are those that are held for the purposes of producing agricultural
produce, rendering of services or rental. Productive biological assets in the Group are vines.
Productive biological assets are initially measured at cost. The cost of self-grown or self-bred
productive biological assets represents the necessary directly attributable expenditure incurred
before satisfying the expected production and operating purpose, including capitalised
borrowing costs.
Productive biological assets, after reaching the expected production and operating purpose,
are depreciated using the straight-line method over its estimated useful life. The estimated
useful lives, estimated net residual value rates and annual depreciation rates of productive
biological assets are as follows:
Category Useful life (years) Estimated net residual rate (%) Annual depreciation rate (%)
Vines 20 years 0% 5.0%
The Group evaluates the useful life and expected net salvage value by considering the normal
producing life of the productive biological assets.
Useful lives, estimated residual values and depreciation methods of productive biological
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assets are reviewed at least at each year-end. Any changes should be treated as changes in
accounting estimates.
For a productive biological asset that has been sold, damaged, dead or destroyed, any
difference between the disposal proceeds and the carrying amount of the asset (after tax
deduction) should be recognised in profit or loss for the period in which it arises.
5.17 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where
the estimated useful life is finite) and impairment losses (see Note 5.20). For an intangible
asset with finite useful life, its cost estimated less residual value and accumulated impairment
losses is amortised on the straight-line method over its estimated useful life, unless the
intangible asset is classified as held for sale.
The respective amortisation periods for intangible assets are as follows:
Item Amortisation period (years)
Land use rights 40-50 years
Software licenses 5-10 years
Trademark 10 years
An intangible asset is regarded as having an indefinite useful life and is not amortised when
there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group. At the balance sheet date, the Group had intangible assets
with infinite useful lives including the land use rights and trademarks. Land use rights with
infinite useful lives are permanent land use rights with permanent ownership held by the
Group under the relevant Chile and Australian laws arising from the Group’s acquisition of
Via Indómita, S.A., Via Dos Andes, S.A., and Bodegas Santa Alicia SpA. (collectively
referred to as the “Chile Indomita Wine Group”), and the acquisition of Kilikanoon Estate Pty
Ltd (hereinafter referred to as the “Australia Kilikanoon Estate”), therefore there was no
amortisation. The right to use trademark refers to the trademark held by the Group arising
from the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate
with infinite useful lives. The valuation of trademark was based on the trends in the market
and competitive environment, product cycle, and managing long-term development strategy.
Those bases indicated the trademark will provide net cash flows to the Group within an
uncertain period. The useful life is indefinite as it was hard to predict the period that the
trademark would bring economic benefits to the Group.
5.18 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note 5.20). On disposal of an asset group or a set of asset groups, any
attributable goodwill is written off and included in the calculation of the profit or loss on
disposal.
5.19 Long-term deferred expenses
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Long-term deferred expenses are amortised using a straight-line method within the benefit
period. The respective amortisation periods for such expenses are as follows:
Item Amortisation period
Land requisition fee 50 years
Land lease fee 50 years
Greening fee 5-20 years
Renovation fee 3-5 years
Others 3 years
5.20 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based on
internal and external sources of information to determine whether there is any indication of
impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- productive biological asset
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, the
Group estimates the recoverable amounts of goodwill and intangible assets with infinite
useful lives at each year-end, irrespective of whether there is any indication of impairment.
Goodwill is allocated to each asset group, or set of asset groups, that is expected to benefit
from the synergies of the combination for the purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of its fair
value (see Note 5.21) less costs to sell and its present value of expected future cash flows.
An asset group is composed of assets directly related to cash-generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting the
future cash flows, estimated to be derived from continuing use of the asset and from its
ultimate disposal, to their present value using an appropriate pre-tax discount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognised
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accordingly. Impairment losses related to an asset group or a set of asset groups are allocated
first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset
groups, and then to reduce the carrying amount of the other assets in the asset group or set of
asset groups on a pro rata basis. However, such allocation would not reduce the carrying
amount of an asset below the highest of its fair value less costs to sell (if measurable), its
present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
5.21 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particular
asset or liability (including the condition and location of the asset and restrictions, if any, on
the sale or use of the asset) that market participants would consider when pricing the asset or
liability at the measurement date, and uses valuation techniques that are appropriate in the
circumstances and for which sufficient data and other information are available to measure
fair value. Valuation techniques mainly include the market approach, the income approach
and the cost approach.
5.22 Revenue
Revenue refers to the gross inflow of economic benefits formed during the course of the
ordinary activities of the Group, which may increase the shareholders’ equities and is
irrelevant to the invested capital of the shareholders.
The Group recognizes the revenue upon fulfillment of its performance obligations in the
contract, that is, the client obtains control right over the relevant goods or services.
If there are two or more performance obligations under the contact, which shall be fulfilled,
the Group will apportion the transaction price to various individual performance obligations
in accordance with the relative proportion of separate selling prices of various goods or
services under these performance obligations on the commencement date of the contract, and
measure and recognize the revenue in accordance with the transaction prices apportioned to
various individual performance obligations. The stand-alone selling price refers to the price at
which the Group sells goods or provides services to customers separately. If the stand-alone
selling price cannot be directly observed, the Group comprehensively considers all the
relevant information that can be reasonably obtained, and uses observable input values to the
greatest extent to estimate the stand-alone selling price.
For contracts with quality assurance clauses, the Group analyzes the nature of the quality
assurance provided. If quality assurance provides a separate service in addition to ensuring to
the client that the goods sold meet the established standards, the Group will treat it as an
individual performance obligation. Otherwise, the Group conducts accounting treatment in
accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.
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The transaction price refers to the amount of consideration that the Group expects to be
entitled to receive due to the transfer of goods or services to the client, excluding payments
received on behalf of third parties. The transaction price recognized by the Group does not
exceed the amount at which the accumulated recognized revenue will most likely not undergo
a significant reversal when the relevant uncertainty is eliminated. In the event that there is a
significant financing part in the contract, the Group determines the transaction price based on
the amount payable in cash when the client obtains control right over the relevant goods or
services. The difference between the transaction price and the contract consideration shall be
amortized by the effective interest method during the contract period. From the day of the
enforcement of the contract, the Group expects that the interval between the client's
acquisition of control right over the goods or services and the client’s payment of the price
will not exceed one year, regardless of the significant financing part in the contract.
If the Group meets one of the following conditions, the fulfillment of its performance
obligations in a certain period will be deemed, or the fulfillment of its performance
obligations at a certain time point will be deemed:
- The client obtains and consumes the economic benefits while the Group fulfills the
performance obligation;
- The client manages to control the goods in process while the Group fulfills the
performance obligation.
- Goods produced during the performance period have irreplaceable purposes and the
Group is entitled to charge money for the performance accumulated and has been finished
until the current time within the whole contract period.
For any performance obligations fulfilled in a certain period, the Group will recognize
revenue within the certain period in accordance with the performance progress. If the
performance progress cannot be determined reasonably and costs incurred are expected to be
compensated of the Group, the revenue will be ascertained according to the costs incurred
until the performance progress is determined reasonably.
In terms of performance obligations fulfilled at a certain time point, the Group will recognize
revenue when the client gains control right over the relevant goods or services. When it comes
to determining whether a client has acquired the control right over goods or services, the
Group will consider the following conditions:
- The Group has the current right to receive payment for the goods or services;
- The Group has transferred the goods in kind to the client;
- The Group has transferred the legal ownership of the product or the main risks and
rewards of ownership to the client;
- The client has accepted the goods or services, etc.
For sales with sales return clauses, when the customer obtains control of the relevant goods,
the Group recognizes revenue based on the amount of consideration expected to be entitled to
receive due to the transfer of goods to the customer (that is, does not include the expected
amount to be refunded due to sales return), and recognizes liabilities based on the expected
amount to be refunded due to sales returns. At the same time, based on the book value at the
time of transfer of the goods expected to be returned, the Group recognizes as an asset the
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balance after deducting the estimated cost of recovering the goods (including the value
impairment of the returned goods). Based on the book value of the transferred goods at the
time of transfer, the Group carries over as the cost the net amount after deducting the above
asset cost. On each balance sheet date, the Group re-estimates the future sales returns. If there
is any change, it shall be treated as a change in accounting estimates.
The Group has transferred the goods or services to the client and thus has the right to receive
corresponding consideration (and the right is dependable on factors other than time lapses) as
contract asset, which is subject to provision of impairment on the basis of expected credit loss.
The right enjoyed by the Group (only depends on time lapses) to receive consideration
unconditionally from the client shall be presented under account receivables. The Group
presents the obligation of transferring goods or services for the client due to the consideration
received or receivable as contract liabilities.
The specific accounting policies related to the main activities of the Group’s revenue are
described as follows:
The Group’s sales revenue mainly comes from dealer sales. The revenue will be recognized
when the Group transfers control of the related products to the customer. According to the
business contract, for these transfers, the time when the product is confirmed and signed by
the customer shall be recognized as the confirming point of the sales revenue.
5.23 Contract cost
Contract cost includes incremental cost for being awarded the contract and performance cost
of the contract.
Incremental cost for being awarded the contract refers to the cost that the Group would not
need to pay if no such contracts are awarded (e.g. sales commissions, etc.). Where such cost is
expected to be recovered, the Group shall take it as the contract acquisition cost and recognize
it as an asset. Expenses incurred by the Group to be awarded contracts other than incremental
cost expected to be recovered shall be recognized in current profits and losses when incurred.
Any cost incurred by the Group for the performance of any contract that doesn't fall into the
scope of other businesses specified in the Standard such as inventory, but meets the following
conditions simultaneously, shall be taken as contract performance cost and recognized as an
asset.
– Where such cost is directly related to a current or anticipated contract, including direct
labor cost, direct material cost, manufacturing expenses (or similar expenses), costs clearly
specified to be borne by the customer and other costs incurred solely due to the contract;
– Where such cost includes resources to be used by the Group to fulfill future performance
obligations;
– Where such cost is expected to be recovered.
Assets recognized for contract acquisition cost and assets recognized for contract performance
cost (hereinafter referred to as “assets related to contract cost”) shall be amortized on the same
basis as the revenue recognition of goods or services related to such assets and recognized in
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current profits and losses. Where the amortization period of assets recognized for the contract
acquisition cost does not exceed one year, they shall be recognized in current profits and
losses.
Where the book value of assets related to contract costs is higher than the difference between
the following two items, the Group shall withdraw the impairment reserves of the excess part
and recognize it as the asset impairment loss:
– Residual consideration expected to be obtained arising from the transfer of goods or
services related to the assets by the Group;
– Cost estimated to be occurred for the transfer of the relevant goods or services.
5.24 Employee benefits
5.24.1 Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical insurance,
work injury insurance, maternity insurance and housing fund, measured at the amount
incurred or accured at the applicable benchmarks and rates, are recognised as a liability as the
employee provides services, with a corresponding charge to profit or loss or included in the
cost of assets where appropriate.
5.24.2 Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the Group
participated in a defined contribution basic pension insurance plan in the social insurance
system established and managed by government organisations. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks and rates
stipulated by the government. Basic pension insurance contributions payable are recognised
as a liability as the employee provides services, with a corresponding charge to profit or loss
or included in the cost of assets where appropriate.
5.24.3 Termination benefits
When the Group terminates the employment with employees before the employment contracts
expire, or provides compensation under an offer to encourage employees to accept voluntary
redundancy, a provision is recognised with a corresponding expense in profit or loss at the
earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of
an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carry out
the restructuring by starting to implement that plan or announcing its main features to those
affected by it.
5.25 Share-based payment
Share-based payment of this Group are transactions in which the Group grants equity
instruments or undertakes equity-instrument-based liabilities in return for services from
employees. The Group’s share-based payments consist of equity-settled share-based payments
and cash-settled share-based payments.
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The equity-settled share-based payment in return for employee services shall be measured at
the fair value of the equity instruments granted to employees on the grant date. On each
balance sheet date within the vesting period, the Group, based on the latest information,
including the change of vested employees’ number, whether it meets the specified
performance conditions, and other subsequent information, makes the best estimates of the
number of vested equity instruments. On this basis, in accordance with the fair value on the
grant date, the services obtained in the current period shall be included in the relevant costs or
expenses, and the capital reserves shall be increased accordingly. After the vesting date, no
adjustment shall be made to the relevant costs or expenses as well as the total amount of the
owner’s equities which have been confirmed. If the right may be exercised immediately after
the grant, however, the fair value shall be included in the relevant costs or expenses on the
grant date, and the capital reserves shall be increased accordingly.
The cash-settled share-based payment shall be measured at the fair value of the liabilities
undertaken by the Group and determined by shares or other equity instruments. If the right
may be exercised immediately after the grant, the fair value of the liabilities undertaken shall
be included in the relevant costs or expenses on the grant date, and the liabilities shall be
increased accordingly; if the right may not be exercised until the vesting period comes to an
end or until the specified performance conditions are met, on each balance sheet date within
the vesting period, the sercices obtained in the current period shall, based on the best estimate
of the information about the exercisable right, be included in the costs or expenses at the fair
value of the liabilities undertaken, and the liabilities shall be adjusted accordingly. The fair
value of the liabilities shall be re-measured on each balance sheet date and balance sheet date
before the settlement of related liabilities, and the change shall be included in the current
profits and losses.
When the Group modifies the share-based payment plan, if the modification increases the fair
value of equity instrument granted, the increase of service shall be recognized according to
the increase of fair value of equity instrument accordingly; if the number of equity instrument
granted is modified to increase, the Group shall recognized the fair value of equity instrument
increased as the increase of service obtained. The increase of the fair value of equity
instruments refers to the difference between the fair value of the equity instruments before
and after the modification on the date of modification. If the revision of vesting conditions is
done in favor of employees, such as vesting period cut-down, modification or cancel of
performance conditions (rather than market conditions), the Group shall take the modified
vesting conditions into consideration to deal with vesting conditions. If the modification
decreases the total amount of share-based payment fair value or adopts other ways which are
adverse to the employees to modify terms and conditions of share-based payment plan, unless
the Group cancels part or all of the granted equity instruments, it shall conduct the further
accounting treatment of the services acquired, and it shall be deemed that such change never
happens.
If the equity instruments granted are cancelled within the vesting period, the Group shall treat
them as accelerated exercise and include the amount to be recognized in the remaining vesting
period into the current profits and losses immediately, and the capital reserves shall be
recognized at the same time. If the employee or other parties can choose to meet the
non-vesting conditions but fails to meet within the vesting period, the Group shall treat it as a
cancellation of equity instruments.
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5.26 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the
government to the Group except for capital contributions from the government in the capacity
as an investor in the Group.
A government grant is recognised when there is reasonable assurance that the grant will be
received and that the Group will comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase, construct or otherwise acquire long-term assets.
Government grants related to income are grants other than those related to assets. A
government grant related to an asset is recognised as deferred income and amortised over the
useful life of the related asset on a reasonable and systematic manner as other income or
non-operating income. A grant that compensates the Company for expenses or losses to be
incurred in the future is recognised as deferred income, and included in other income or
non-operating income in the periods in which the expenses or losses are recognised, or
included in other income or non-operating income directly.
5.27 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination or items recognised directly in equity (including other
comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable income
for the year, plus any adjustment to tax payable in respect of previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the Group has a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively, being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases, which include the deductible
losses and tax credits carried forward to subsequent periods. Deferred tax assets are
recognised to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is not
recognised for taxable temporary differences arising from the initial recognition of goodwill.
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At the balance sheet date, deferred tax is measured based on the tax consequences that would
follow from the expected manner of recovery or settlement of the carrying amounts of the
assets and liabilities, using tax rates enacted at the balance sheet date that are expected to be
applied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilised.
Such reduction is reversed to the extent that it becomes probable that sufficient taxable profits
will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of the
following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current
tax assets;
- they relate to income taxes levied by the same tax authority on either: the same taxable
entity; or different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis, or to realise the assets and settle the liabilities simultaneously,
in each future period in which significant amounts of deferred tax liabilities or deferred tax
assets are expected to be settled or recovered.
5.28 Lease
Lease refers to a contract in which it is agreed that the lessor conveys the use right of any
asset to the lessee for a period of time in exchange for consideration.
On the contract start date, the Group shall evaluate whether the contract is, or contains, a lease.
Where either party thereto conveys the right to control the use of one or more identified assets
for a period of time in exchange for consideration, the contract is, or contains a lease.
To determine whether the contract conveys the right to control the use of identified assets for
a period of time, the Group conducts the following assessments:
- Whether the contract involves the use of an identified asset. An identified asset can be
either explicitly specified in a contract, or implicitly when the asset is available to the
customer and can be a physically distinct portion, or if some capacity or other portion of the
asset is not physically distinct but substantially represents the full capacity of the asset, so that
the customer obtains substantially all of the economic benefits from the use of the asset. If the
supplier of the asset has the practical ability to substitute the asset throughout the period of
use, the asset is not an identified asset;
- Whether the lessee has the right to obtain substantially all of the economic benefits from
the use of the identified asset throughout the period of use; and
- Whether the lessee has the right to direct the use of an identified asset throughout this
period of use.
If the contract contains multiple separate leases at the same time, the lessee and lessor will
split the contract and have each separate lease separately subject to accounting treatment. If
the contract includes lease and non-lease parts at the same time, the lessee and the lessor will
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split them separately. When splitting the lease and non-lease parts included in the contract, the
lessee shall allocate the contract consideration according to the relative proportion of the sum
of the stand-alone price of each lease part and the stand-alone price of each non-lease part.
The lessor shall allocate the contract consideration in accordance with the provisions on
transaction price allocation in the accounting policy stated in Note 5.22.
5.28.1 Where the Group is the lessee
Upon the commencement of the lease term, the Group recognizes right-of-use assets and lease
liabilities for leases. The right-of-use assets are initially measured at cost, including initially
measured amount of leased liability; amount of lease payments made on or before the
commencement date of the lease term (the related amount of lease incentive having been
enjoyed shall be deducted); initial direct costs incurred and costs that the Group expects to
incur to disassemble and remove leased assets, restore the site where leased assets are located
or restore leased assets to the agreed condition under the terms of the lease.
The Group employs the straight-line method to depreciate right-of-use assets. Where it can be
reasonably recognized that the ownership of leased assets will be obtained by the Group upon
expiration of the lease term, leased assets will be depreciated during the service life; otherwise,
leased assets will be depreciated during the lease term or the remaining service life of such
leased assets by the Group, whichever is shorter. Right-of-use assets shall be provided for
impairment in accordance with the accounting policies stated in Note 5.20.
When initially calculating the present value of the unpaid lease payment at the
commencement date of the lease term, the Group shall employ the interest rate implicit in the
lease as the discount rate; where the interest rate implicit in the lease cannot be determined,
the incremental lending rate of the Group shall be used as the discount rate.
The Group calculates the interest expense of lease liabilities in each period of the lease term
according to a fixed periodic rate, which will be included in current profits and losses or asset
cost. The variable lease payment not included in the measurement of lease liabilities shall be
recognized in current profits and losses and loss or related asset cost when they actually occur.
In case of any of following circumstances after the commencement date of the lease term, the
Group will remeasure lease liabilities at the present value of the lease payment after any
change:
– Where the amount payable anticipated changes according to the guaranteed residual
value;
– Where the index or ratio used for recognizing the lease payment changes;
– Where there is a change in the Group's assessment results of the option of purchase,
renewal option or option of termination of lease or the actual exercising of the termination of
the renewal option or option of termination of lease is inconsistent with the original
assessment result.
When the Group remeasures lease liabilities, the book value of right-of-use assets shall be
adjusted accordingly. Where the book value of right-of-use assets has been reduced to zero,
but lease liabilities still need to be subject to further reduction, the remaining amount shall be
recognized in current profits and losses.
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The Group does not recognize right-of-use assets and leased liabilities for short-term lease
(lease with a lease term within 12 months) and lease of low-value assets. The Group shall
include related lease payment into the current profits and losses or relevant asset costs
according to the straight-line method in each period of the lease term.
5.28.2 The Group as the lessor
From the inception of lease, the Group will divide leases into finance lease and operating
lease. Finance lease refers to a lease in which almost all the risks and returns related to the
ownership of the leased asset are essentially transferred, regardless of whether the ownership
is finally transferred or not. Operating lease refers to other leases except for the finance lease.
When the Group is the sublease lessor, the sublease shall be classified based on the
right-of-use assets arising from the original lease rather than the underlying assets of the the
original lease. If the original lease is a short-term lease and the Group elects to apply the
above-mentioned simplified treatment of short-term lease to the original lease, the Group
shall classify the sublease as an operating lease.
For finance leases, from the commencement date of the lease term, the Group recognizes
finance lease receivables for finance leases and derecognizes the finance lease assets. The
Group regards the net investment in a lease as the entry value of finance lease receivables at
the time of initial measurement of finance lease receivables. The net investment in a lease is
the sum of the present value of unguaranteed residual value and rental receipts not received
yet on the commencement date of the lease term which is subject to discounting at the interest
rate implicit in the lease term.
The Group calculates and recognizes the interest income in each period within the lease term
according to a fixed periodic rate. Derecognition and impairment of finance lease receivables
shall be subject to accounting treatment in accordance with the accounting policies stated in
Note 5.9. The variable lease payment which is not included in the net investment in a lease,
shall be recognized in current profits and losses when it actually occurs.
During each period of the lease term, the Group recognizes lease receipts from operating
leases as rental revenue by using the straight-line method. The Group capitalizes initial direct
costs pertaining to operating leases upon their occurrence, and apportions them as per the
same basis used for recognizing the rental income within the lease term and includes them in
current profits and losses by period. The variable lease receipts related to operating leases that
are not included in the lease receipts shall be recognized in current profits and losses when
they actually occur. The variable lease payment which is not included in the lease receipts,
shall be recognized in current profits and losses when it actually occurs.
5.29 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the carrying
amount of a non-current asset or disposal group will be recovered through a sale transaction
rather than through continuing use.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, together as
a whole in a single transaction and liabilities directly associated with those assets that will be
transferred in the transaction.
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A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in similar
transactions, the non-current asset or disposal group must be available for immediate sale in
their present condition subject to terms that are usual and customary for sales of such assets or
disposal groups;
- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and has
obtained a firm purchase commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carrying amount
and fair value less costs to sell (except financial assets, deferred tax assets and investment
properties subsequent measured at fair value initially and subsequently. Any excess of the
carrying amount over the fair value less costs to sell is recognised as an impairment loss in
profit or loss.
5.30 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be
approved after the balance sheet date, are not recognised as a liability at the balance sheet date
but are disclosed in the notes separately.
5.31 Related parties
If a party has the power to control, jointly control or exercise significant influence over
another party, or vice versa, or where two or more parties are subject to common control or
joint control from another party, they are considered to be related parties. Related parties may
be individuals or enterprises. Enterprises with which the Company is under common control
only from the State and that have no other related party relationships are not regarded as
related parties.
In addition to the related parties stated above, the Group determines related parties based on
the disclosure requirements of Administrative Procedures on the Information Disclosures of
Listed Companies issued by the CSRC.
5.32 Segment reporting
The Group is principally engaged in the production and sales of wine, brandy, and sparkling
wine in China, France, Spain, Chile and Australia. In accordance with the Group's internal
organisation structure, management requirements and internal reporting system, the Group's
operation is divided into four parts: China, Spain, France, Chile and Australia. The
management periodically evaluates segment results, in order to allocate resources and
evaluate performances. In 2023, over 85% of revenue, more than 96% of profit and over 91%
of non-current assets derived from China / are located in China. Therefore the Group does not
need to disclose additional segment report information.
5.33 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
5.33.1 Significant accounting estimates
For significant accounting estimates of this Company, see Notes 5.3, 7, 11 and 16.
5.34 Changes in significant accounting policies and accounting estimates
5.34.1 Changes in significant accounting policies
Nil
5.34.2 Changes in significant accounting estimates
Nil
6. Taxes
6.1 Main taxes and tax rates are as follows:
Tax category Taxation basis Tax rates
Levied on the balance between the
13%, 9%, 6% (China), 20% (France),
output tax calculated based on taxable
Value added tax 21% (Spain), 19% (Chile), 10%
income and the input tax allowed to be
(Australia)
deducted in current period
10% of the price, 20% of the price and
Consumption tax Levied on taxable income
1,000 Yuan each ton (China)
City development tax Levied on circulation tax actually paid 7% (China)
25% (China), 25% (France), 28%
Corporate income tax Levied on taxable income
(Spain), 27% (Chile), 30% (Australia)
6.2 Tax incentives
Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”), a subsidiary of the Group,
whose principal activity is grape growing, is incorporated in Ningxia Huizu Autonomous
Region. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC
Corporate Income Tax Measures for Implementation, Ningxia Growing enjoys an exemption
of corporate income tax.
Yantai Changyu Grape Growing Co., Ltd. (“Grape Growing”), a branch of the Company,
whose principal activity is grape growing, is incorporated in Zhifu District, Yantai City,
Shandong Province. According to clause 27 of PRC Corporate Income Tax and clause 86 of
PRC Corporate Income Tax Measures for Implementation, Grape Growing enjoys an
exemption of corporate income tax.
Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co., Ltd. (“R&D
and Growing”), a branch of the Company, whose principal activity is grape growing, is
incorporated in YEDA, Shandong Province. According to Clause 27 of PRC Corporate
Income Tax and Clause 86 of PRC Corporate Income Tax Measures for Implementation, R&D
and Growing enjoys an exemption of corporate income tax.
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Beijing Changyu AFIP Agriculture Development Co., Ltd (“Agriculture Development”), a
subsidiary of the Group, whose principal activity is grape growing, is incorporated in Miyun
County, Beijing. According to clause 27 of the Corporate Income Tax Law of the People’s
Republic of China and clause 86 of the Implementation Rules of Enterprise Income Tax Law
of the People’s Republic of China, Agriculture Development enjoys an exemption of corporate
income tax.
Xinjiang Tianzhu Co., Ltd (“Xinjiang Tianzhu”, disposed in June 2023), a subsidiary of the
Company, is an enterprise of raw wine production and sales incorporated in Shihezi City,
Xinjiang Uygur Autonomous Region. In accordance with the Announcement on Continuing
the Enterprise Income Tax Policies for the Large-Scale Development of Western China of the
Ministry of Finance, the State Taxation Administration and the National Development and
Reform Commission (Announcement No. 23 [2020] of the Ministry of Finance), Xinjiang
Tianzhu is qualified to enjoy preferential taxation policies, which means it can pay corporate
income tax at a preferential rate of 15% for the period from 2021 to 2030.
Xinjiang Babao Baron Chateau Co., Ltd. (“Shihezi Chateau”), a subsidiary of the Company, is
an enterprise of raw wine production and sales incorporated in Shihezi City, Xinjiang Uygur
Autonomous Region. In accordance with Announcement on Continuing the Enterprise Income
Tax Policies for the Large-Scale Development of Western China of the Ministry of Finance,
the State Taxation Administration and the National Development and Reform Commission
(Announcement No. 23 [2020] of the Ministry of Finance), Shihezi Chateau is qualified to
enjoy preferential taxation policies, which means it can pay corporate income tax at a
preferential rate of 15% for the period from 2021 to 2030.
Ningxia Chateau Changyu Longyu Co., Ltd. (previous name: Chateau Changyu Moser XV
Co., Ltd., Ningxia, referred to as “Ningxia Chateau”), a subsidiary of the Company, is an
enterprise of raw wine production and sales incorporated in Yinchuan City, Ningxia Huizu
Autonomous Region. In accordance with Announcement on Continuing the Enterprise Income
Tax Policies for the Large-Scale Development of Western China of the Ministry of Finance,
the State Taxation Administration and the National Development and Reform Commission
(Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Chateau is qualified to
enjoy preferential taxation policies, which means it can pay corporate income tax at a
preferential rate of 15% for the period from 2021 to 2030.
Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”), a subsidiary of the Company, is an
enterprise of raw wine production and sales incorporated in Yinchuan City, Ningxia Huizu
Autonomous Region. In accordance with Announcement on Continuing the Enterprise Income
Tax Policies for the Large-Scale Development of Western China of the Ministry of Finance,
the State Taxation Administration and the National Development and Reform Commission
(Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Wine is qualified to enjoy
preferential taxation policies, which means it can pay corporate income tax at a preferential
rate of 15% for the period from 2021 to 2030.
According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Further Implementing the Preferential Income Tax Policies for
Micro and Small Enterprises (Announcement No. 13 of [2022] of the Ministry of Finance and
the State Taxation Administration), the annual taxable income of a small low-profit enterprise
that is not less than 1 Million Yuan and not more than 3 Million Yuan shall be included in its
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
taxable income at the reduced rate of 25%, with the applicable enterprise income tax rate of
20%. Beijing Changyu Wine Industry Marketing Co., Ltd. (“Beijing Allotting”), a subsidiary
of the Group, has been identified as eligible small low-profit enterprise.
According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Exempting Small-Scale Value-Added Tax Taxpayers from
Value-Added Tax (Announcement No. 1 of [2023] of the Ministry of Finance and the State
Taxation Administration), from January 1 to December 31, 2023, small-scale VAT taxpayers
subject to a levy rate of 3% on taxable sales income will enjoy a reduced VAT rate of 1%; and
prepaid VAT items that are subject to a 3% pre-levy rate will enjoy a reduced VAT prepayment
rate of 1%. Xinjiang Changyu Sales Co., Ltd. Weimeisi Tasting Center Branch has enjoyed
this exemption policy.
According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Further Strengthening the Implementation of the Policies
Regarding the Refund of Term-End Excess Input Value-Added Tax Credits (Announcement No.
14 of [2022] of the Ministry of Finance and the State Taxation Administration), it will further
strengthen the implementation of the refund of term-end excess input value-added tax credits
and expand the industry scope of the policy of fully refunding the excess input value-added
tax credits. This Company and eligible subsidiaries have enjoyed the refund of term-end
excess input value-added tax credits.
According to the Announcement of the Ministry of Finance and the State Taxation
Administration on Further Implementing the “Six Taxes and Two Fees” Reduction and
Exemption Policies for Micro and Small Enterprises (Announcement No. 10 of [2022]), as
determined by the people’s government of a province, autonomous region, or municipality
directly under the Central Government in light of the actual circumstances of the local region,
from January 1, 2022 to December 31, 2024, a small-scale VAT taxpayer, a small low-profit
enterprise or an individual industrial and commercial household may be pay resource tax,
urban maintenance and construction tax, property tax, urban land use tax, stamp tax
(excluding securities trading stamp tax), farmland occupation tax, educational surtax, or local
education surcharges at the reduced tax rate of 50% or less. Shandong, Xinjiang, Ningxia,
Shaanxi and other provinces (autonomous regions and municipalities) have reduced the “six
taxes and two fees” by 50%, and some of the Company’s subsidiaries are eligible for the
reduction.
7. Notes to items in the consolidated financial statement
7.1 Monetary capital
Unit: Yuan
Item Ending balance Beginning balance
Cash on hand 59,243 47,954
Bank deposit 1,654,452,878 1,643,577,420
Other monetary capital 7,116,672 7,828,741
Total 1,661,628,793 1,651,454,115
Including: Total overseas deposits 26,734,678 17,073,210
As at June 30, 2023, the restricted bank deposit details are listed as follows:
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Unit: Yuan
Item Ending balance Beginning balance
Housing fund of the unit 2,671,774 2,671,774
Total 2,671,774 2,671,774
As at June 30, 2023, the details of other monetary funds are listed as follows:
Unit: Yuan
Item Ending balance Beginning balance
Guaranteed deposits paid for the letter of credit 6,000,000 6,000,000
Account balance of Alipay 974,374 1,695,245
Guaranty money for ICBC platform 10,000 10,000
Guaranty money for customs 132,298 123,496
Total 7,116,672 7,828,741
As at June 30, 2023, the bank deposits of the Group including short-term fixed deposits
ranging from 3 months to 12 months and interests amounted to RMB 228,759,568 Yuan, with
the interest rates ranging from 1.7% to 2.15% (December 31, 2022: RMB 28,200,000 Yuan).
7.2 Bills receivable
Classification of bills receivable
Item Ending balance Beginning balance
Bank acceptance bills 684,245 2,712,460
Total 684,245 2,712,460
The above bills receivable are all due within one year.
7.3 Accounts receivable
7.3.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Provision for bad Provision for bad
Type Book balance Book balance
debts debts
Book value Book value
Accrued Accrued
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable for
which provision
for bad debts is
accrued on a
single item basis
Accounts
receivable for
which provision
225,725,385 100.0% 15,549,600 6.89% 210,175,785 358,539,091 100% 14,556,106 4.06% 343,982,985
for bad debts is
accrued on a
combined basis
Total 225,725,385 100.0% 15,549,600 6.89% 210,175,785 358,539,091 100% 14,556,106 4.06% 343,982,985
Provision for bad debts accrued on a combined basis:
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Accrued proportion
Amounts due from related
2,557,331 4,603 0.18%
parties
Amounts due from other
223,168,054 15,544,997 6.97%
customers
Total 225,725,385 15,549,600 --
Disclosed by age:
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 214,280,276
1-2 years 11,122,911
2-3 years 322,198
Over 3 years
Total 225,725,385
As at June 30, 2023, the accounts receivable with ownership restrictions were RMB
64,860,399 Yuan (December 31, 2022: 59,982,807 Yuan). Please refer to Note 7.19 for details.
7.3.2 Provision for bad debts accrued, withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
Unit: Yuan
Beginning Changes in this period
Ending
Type balance of the Withdrawn or
Accrued Cancelled balance
year transferred back
Accounts receivable for which
14,556,106 993,494 15,549,600
provision for bad debts is accrued
Total 14,556,106 993,494 15,549,600
7.3.3 Accounts receivable actually cancelled after verification in this period
Nil
7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage in total Ending balance of
Relationship with
Unit Amount Period accounts provision for bad
the Group
receivable and doubtful debts
Customer 1 Third party 34,036,910 Within 1 year 15.1% 60,724
Customer 2 Third party 9,422,337 Within 1 year 4.2% 586,782
Customer 3 Third party 6,956,313 Within 1 year 3.1% 433,209
Customer 4 Third party 5,004,414 Within 1 year 2.2% 311,653
Customer 5 Third party 4,394,266 Within 1 year 1.9% 273,656
Total -- 59,814,240 -- 26.5% 1,666,024
7.3.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
7.3.6 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Receivables financing
Unit: Yuan
Item Ending balance Beginning balance
Bills receivable 308,817,929 309,329,918
Total 308,817,929 309,329,918
7.4.1 The pledged bills receivable of the Group at the end of the year
Nil
7.4.2 Outstanding endorsed bills that have not matured at the end of the year
Category Amount derecognised at end of period
Bank acceptance bills 97,379,122
Total 97,379,122
As at June 30, 2023, bills endorsed by the Group to other parties which are not yet due at the
end of the period is RMB 97,379,122 Yuan (December 31, 2022: RMB 500,480,279 Yuan).
The notes are used for payment to suppliers and constructions. The Group believes that due to
good reputation of bank, the risk of notes not accepting by bank on maturity is very low,
therefore derecognise the note receivables endorsed. If the bank is unable to pay the notes on
maturity, according to the relevant laws and regulations of China, the Group would undertake
limited liability for the notes.
7.5 Advance payment
7.5.1 Advance payment listed by age
Unit: Yuan
Ending balance Beginning sum
Age
Amount Proportion Amount Proportion
Within 1 year 9,182,282 99.25% 59,426,080 98.40%
1-2 years 69,119 0.75% 989,428 1.60%
2-3 years
More than 3 years
Total 9,251,401 -- 60,415,508 --
7.5.2 Advance payment collected by the prepaid parties of top 5 units ranked by the
ending balance
Unit: Yuan
Percentage in the
Relationship with Reason for
Category of client Amount Age total advance
the Group unsettlement
payment%
Within 1 year Prepaid
Unit 1 Third party 1,073,128 11.6%
(including 1 year) electricity
Unit 2 Third party 1,000,000 Within 1 year Prepaid service 10.8%
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
(including 1 year) charge
Within 1 year
Unit 3 Third party 750,000 Prepaid freight 8.1%
(including 1 year)
Within 1 year
Unit 4 Third party 501,076 Prepaid freight 5.4%
(including 1 year)
Within 1 year Prepaid payment
Unit 5 Third party 300,000 3.2%
(including 1 year) for goods
Total -- 3,624,204 -- 39.10%
7.6 Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Interests receivable
Dividends receivable
Other receivables 69,101,039 70,542,398
Total 69,101,039 70,542,398
Other receivables
7.6.1 Other receivables classified by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Deposit and guaranty money receivable 3,529,407 5,578,001
Consumption tax and added-value tax export rebate 8,971,546 12,509,201
Imprest receivable 314,172 440,759
Compensation for land acquisition and storage receivable 41,268,902 41,268,902
Other 15,017,012 10,745,535
Total 69,101,039 70,542,398
7.6.2 Disclosed by age
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 65,165,325
1-2 years 1,454,647
2-3 years 411,516
More than 3 years 2,069,551
Total 69,101,039
7.6.3 Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan; and that withdrawn or
transferred back in this period was RMB 0 Yuan.
7.6.4 Other receivables actually cancelled after verification in this period
Nil
7.6.5 Other receivables collected by the borrowers of top 5 units ranked by the ending
balance
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Unit: Yuan
Percentage in total Ending balance of
Ending
Unit Nature Age ending balance of other provision for bad
balance
accounts receivable debts
Land acquisition and
Unit 1 41,268,902 Within 1 years 59.72%
reserve funds
Value-added tax export
Unit 2 7,762,031 Within 1 years 11.23%
rebate
Value-added tax and
Unit 3 consumption tax export 1,209,515 Within 1 years 1.75%
rebate
Unit 4 Guaranty money 721,657 Within 1 year 1.04%
Unit 5 Guaranty money 572,880 1-2 years 0.83%
Total -- 51,534,985 -- 74.58%
7.6.6 Accounts receivable involving government subsidies
Nil
7.6.7 Other receivables that are terminated for recognition due to transfer of financial
assets
Nil
7.6.8 Other receivables transferred and then included in assets and liabilities
Nil
7.7 Inventories
7.7.1 Inventory classification
Unit: Yuan
Ending balance Beginning balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 86,766,001 86,766,001 258,200,178 258,200,178
Goods in process 2,213,143,868 2,213,143,868 1,986,391,270 1,986,391,270
Commodity stocks 641,193,968 14,608,393 626,585,575 673,171,026 14,363,959 658,807,067
Total 2,941,103,837 14,608,393 2,926,495,444 2,917,762,474 14,363,959 2,903,398,515
7.7.2 Inventory depreciation provision
Unit: Yuan
Increase in this period Decrease in this period
Beginning
Item Transfer back or Ending balance
balance Accrual Other Other
write-off
Raw materials
Goods in process
Commodity stocks 14,363,959 14,608,393 14,363,959 14,608,393
Total 14,363,959 14,608,393 14,363,959 14,608,393
7.8 Other current assets
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Unit: Yuan
Item Ending balance Beginning balance
Trademark use fees 108,931,118 120,930,641
Prepaid corporate income tax 12,985,243 19,102,111
Deductible input tax 31,032,377 44,270,238
Expense to be amortized 3,095,677 1,034,403
Total 156,044,415 185,337,393
7.9 Long-term equity investments
Unit: Yuan
Movements during the period Ending
Beginning balance of
Losses from Other Declare Ending balance
Investee balance (book
Increase Decrease in investments comprehensive
Other
cash
Accrual
(book value)
provision
value) equity provision for Others for
in capital capita under income dividend or
changing impairment impairment
equity-method adjustment profit
1. Joint ventures
SAS L&M
Holdings
37,970,535 -1,124,340 36,846,195
(“L&M
Holdings”)
Subtotal 37,970,535 -1,124,340 36,846,195
2. Associates
Weimeisi
(Shanghai)
Enterprise
2,318,351 2,373,285 54,934
Development Co.,
Ltd. (“Weimeisi
Shanghai”)
Chengdu Yufeng
Brand
Management Co., 420,369 -41,400 378,969
Ltd. (“Chengdu
Yufeng”) (Note)
Yantai Guolong
Wine Industry
Co., Ltd. 662,130 178,218 840,348
(“Guolong Wine
Industry”) (Note)
Subtotal 3,400,850 2,373,285 191,752 1,219,317
Total 41,371,385 2,373,285 -932,588 38,065,512
Note: The Group has appointed one director to each of these investees.
7.10 Investment real estate
7.10.1 Investment real estate by cost measurement method
Unit: Yuan
Construction in
Item Houses and buildings Land use right Total
progress
Ⅰ Original book value
1. Beginning balance 70,954,045 70,954,045
2. Increase in this period
2.1 Outsourcing
2.2 Transfer in from
inventories\fixed assets\
construction in progress
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Construction in
Item Houses and buildings Land use right Total
progress
2.3 Business merger
increase
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 70,954,045 70,954,045
Ⅱ Accumulated depreciation &
accumulated amortization
1. Beginning balance 48,838,727 48,838,727
2. Increase in this period 1,073,998 1,073,998
2.1 Accrual or amortization 1,073,998 1,073,998
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 49,912,725 49,912,725
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance
Ⅳ Book value
1. Ending book value 21,041,320 21,041,320
2. Beginning book value 22,115,318 22,115,318
7.11 Fixed assets
Unit: Yuan
Item Ending balance Beginning balance
Fixed assets 5,926,395,012 6,028,137,972
Disposal of fixed assets
Total 5,926,395,012 6,028,137,972
7.11.1 Particulars of fixed assets
Unit: Yuan
Houses and Transportation
Item Machinery equipment Total
buildings equipment
Ⅰ Original book value:
1. Beginning balance 5,878,199,055 2,793,728,175 25,888,552 8,697,815,782
2. Increase in this period 14,876,612 44,297,900 9,252 59,183,764
2.1 Acquisition 9,161,231 42,571,564 9,252 51,742,047
2.2 Transfer in from
5,715,381 1,726,336 7,441,717
construction in progress
2.3 Business merger
increase
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Houses and Transportation
Item Machinery equipment Total
buildings equipment
3. Decrease in this period 6,544,913 34,325,726 1,538,783 42,409,422
3.1 Disposal or
32,763,148 1,286,428 34,049,576
retirement
3.2 Others 6,544,913 1,562,578 252,355 8,359,846
4. Ending balance 5,886,530,754 2,803,700,349 24,359,021 8,714,590,124
Ⅱ Accumulated
depreciation
1. Beginning balance 1,167,095,365 1,477,263,867 22,633,029 2,666,992,261
2. Increase in this period 77,811,305 77,119,167 953,314 155,883,786
2.1 Accrual 77,811,305 77,119,167 953,314 155,883,786
3. Decrease in this period 3,303,153 30,076,823 1,414,322 34,794,298
3.1 Disposal or
29,248,194 1,174,585 30,422,779
retirement
3.2 Others 3,303,153 828,629 239,737 4,371,519
4. Ending balance 1,241,603,517 1,524,306,211 22,172,021 2,788,081,749
Ⅲ Impairment provision
1. Beginning balance 2,685,549 2,685,549
2. Increase in this period
2.1 Accrual
3. Decrease in this period 2,572,186 2,572,186
3.1 Disposal or
2,556,018 2,556,018
retirement
3.2 Others 16,168 16,168
4. Ending balance 113,363 113,363
Ⅳ Book value
1. Ending book value 4,644,927,237 1,279,280,775 2,187,000 5,926,395,012
2. Beginning book value 4,711,103,690 1,313,778,759 3,255,523 6,028,137,972
As at June 30, 2023, the net value of the fixed assets with ownership restrictions was RMB
294,202,438 Yuan (December 31, 2022: RMB 303,897,124 Yuan). Please refer to Note 7.53
for details.
The Company’s disposal of its subsidiary Xinjiang Tianzhu this year was not included in the
scope of the consolidated balance sheet at the end of this period. As of the date of loss of
control, the original book value, accumulated depreciation, and depreciation reserves of fixed
assets of Xinjiang Tianzhu are respectively listed in the “Others” item of the current decrease
in the original book value, accumulated depreciation, and depreciation reserves of fixed
assets.
7.11.2 Particulars of temporarily idle fixed assets
Unit: Yuan
Accumulated Depreciation
Item Original book value Book value Remarks
depreciation reserves
Buildings 16,248,086 8,767,714 7,480,372
Machinery equipment 780,191 627,819 113,363 39,009
Transportation equipment 1,081,789 1,027,699 54,090
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Total 18,110,066 10,423,232 113,363 7,573,471
7.11.3 Particulars of fixed assets under finance leases
Nil
7.11.4 Fixed assets under operating lease
Unit: Yuan
Item Ending book value
Machinery equipment 4,365
7.11.5 Particulars of fixed assets without property certificates
Unit: Yuan
Reason for not receiving the property
Item Book value
certificate
Dormitory Building, Main Building and Reception Building of
261,255,708 Under transaction
Chang’an Chateau
Building and Boiler Room of Koya 171,944,719 Under transaction
European Town, Main Building and Service Building of
161,661,819 Under transaction
Chateau AFIP
Office Building and Packaging Workshop of Icewine Valley 9,586,292 Under transaction
Wine-making Workshop of Changyu (Jingyang) 4,497,542 Under transaction
Office Building, Laboratory Building and Workshop of
2,895,534 Under transaction
Fermentation Center
Finished Goods Warehouse and Workshop of Kylin Packaging 1,988,799 Under transaction
Others 273,112 Under transaction
Total 614,103,525
7.12 Construction in progress
Unit: Yuan
Item Ending balance Beginning balance
Construction in progress 47,247,490 40,934,161
Engineering materials
Total 47,247,490 40,934,161
7.12.1 Particulars of construction in progress
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Museum Upgrading and Rebuilding
46,036,465 46,036,465 32,981,419 32,981,419
Project
Renovation of Refrigeration Equipment
700,000 700,000 7,065,744 7,065,744
in Xinjiang Chateau Workshop
Construction Projects of Other
511,025 511,025 886,998 886,998
Companies
Total 47,247,490 47,247,490 40,934,161 40,934,161
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7.12.2 Changes of major construction in progress in this period
Unit: Yuan
Transferred Including:
Proportion of Accumulative Capitalization
Other capitalized
Beginning Increase in to fixed decrease in Ending accumulative capitalized ratio of
Item Budget amount of Capital source
balance this period assets in this period balance project input amount of interest in this
interest in this
this period in budget interest period
period
Construction Project of
780,000,000 7,065,744 7,065,744 100.% Self-raised funds
Shihezi Chateau
Museum Upgrading and
51,000,000 32,981,419 13,055,046 46,036,465 90.3% Self-raised funds
Rebuilding Project
Renovation of
Refrigeration Equipment
2,980,000 700,000 700,000 23.5% Self-raised funds
in Xinjiang Chateau
Workshop
As at June 30, 2023, there was no indication for impairment of construction in progress of the Group, so no provision for impairment was made.
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7.13 Productive biological assets
7.13.1 Productive biological assets by cost measurement method
Unit: Yuan
Plantation
Item Total
Immature Mature
Ⅰ Original book value
1. Beginning balance 23,405,557 252,471,374 275,876,931
2. Increase in this period 1,360,198 83,870 1,444,068
2.1 Outsourcing 0
2.2 Self cultivation 1,444,068 1,444,068
The immature turn to the mature -83,870 83,870
3. Decrease in this period 850,105 130,466 980,571
3.1 Disposal 850,105 130,466 980,571
3.2 Other 0
4. Ending balance 23,915,650 252,424,778 276,340,428
Ⅱ Accumulated depreciation
1. Beginning balance 91,456,190 91,456,190
2. Increase in this period 7,047,318 7,047,318
2.1 Accrual 7,047,318 7,047,318
3. Decrease in this period 95,335 95,335
3.1 Disposal 95,335 95,335
3.2 Other
4. Ending balance 98,408,173 98,408,173
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance
Ⅳ Book value
1. Ending book value 23,915,650 154,016,605 177,932,255
2. Beginning book value 23,405,557 161,015,184 184,420,741
As at June 30, 2023, no ownership of the biological assets was restricted.
As at June 30, 2023, there was no indication for impairment of biological assets of the Group,
so no provision was made.
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7.14 Right-of-use assets
Unit: Yuan
Item Building Land Others Total
Ⅰ Original book value
1. Beginning balance 84,818,532 137,980,409 1,697,986 224,496,927
2. Increase in this period
3. Decrease in this period
4. Ending balance 84,818,532 137,980,409 1,697,986 224,496,927
Ⅱ Accumulated amortization
1. Beginning balance 33,923,955 49,667,021 1,018,792 84,609,768
2. Increase in this period 8,014,300 2,898,345 169,799 11,082,444
2.1 Accrual 8,014,300 2,898,345 169,799 11,082,444
3. Decrease in this period
3.1 Disposal
4. Ending balance 41,938,255 52,565,366 1,188,591 95,692,212
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
4. Ending balance
Ⅳ Book value
1. Ending book value 42,880,277 85,415,043 509,395 128,804,715
2. Beginning book value 50,894,577 88,313,388 679,194 139,887,159
7.15 Intangible assets
7.15.1 Particulars of intangible assets
Unit: Yuan
Item Land use right Software use right Trademark Total
Ⅰ Original book value
1. Beginning balance 475,770,881 101,979,429 189,575,068 767,325,378
2. Increase in this period 885,077 198,448 1,083,525
2.1 Acquisition 885,077 198,448 1,083,525
2.2 Internal R&D
2.3 Business merger
increase
3. Decrease in this period 26,611,363 289,000 26,900,363
3.1 Disposal
3.2 Others 26,611,363 289,000 26,900,363
4. Ending balance 449,159,518 102,575,506 189,773,516 741,508,540
Ⅱ Accumulated amortization
1. Beginning balance 110,698,068 62,835,583 15,550,881 189,084,532
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Item Land use right Software use right Trademark Total
2. Increase in this period 4,749,952 3,965,405 220,979 8,936,336
2.1 Accrual 4,749,952 3,965,405 220,979 8,936,336
3. Decrease in this period 7,718,585 289,000 8,007,585
3.1 Disposal
3.2 Others 7,718,585 289,000 8,007,585
4. Ending balance 107,729,435 66,511,988 15,771,860 190,013,283
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance
Ⅳ Book value
1. Ending book value 341,430,083 36,063,518 174,001,656 551,495,257
2. Beginning book value 365,072,813 39,143,846 174,024,187 578,240,846
As at June 30, 2023, the net value of the intangible assets with ownership restrictions was
RMB 166,920,626 Yuan (December 31, 2022: RMB 169,385,254 Yuan). Please refer to Note
7.53 for details.
The Company’s disposal of the subsidiary Xinjiang Tianzhu this year was not included in the
scope of the consolidated balance sheet at the end of this period. As of the date of loss of
control, the original book value and accumulated depreciation of intangible assets of Xinjiang
Tianzhu are respectively listed in the “Others” item of the current decrease in the original
book value and accumulated depreciation of intangible assets.
7.15.2 Particulars of land use right of that not receiving the property certificate
Nil
7.16 Goodwill
7.16.1 Original book value of goodwill
Unit: Yuan
Increase in this period Decrease in this period
Name of the invested unit or matter Beginning Ending
forming goodwill balance Formed by balance
Other Disposal Other
business merger
Etablissements Roullet Fransac
13,112,525 13,112,525
(“Roullet Fransac”)
Dicot Partners, S.L (“Atrio Group”) 92,391,901 92,391,901
Indomita Wine Company Chile, SpA 6,870,115 6,870,115
Kilikanoon Estate, Australia 37,063,130 37,063,130
Total 149,437,671 149,437,671
7.16.2 Provision for impairment of goodwill
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Unit: Yuan
Increase in this period Decrease in this period
Name of the invested unit or matter Beginning Ending
forming goodwill balance Formed by balance
Other Disposal Other
business merger
Etablissements Roullet Fransac
(“Roullet Fransac”)
Dicot Partners, S.L (“Atrio Group”) 5,210,925 5,210,925
Indomita Wine Company Chile, SpA
Kilikanoon Estate, Australia 37,063,130 37,063,130
Total 42,274,055 42,274,055
7.17 Long-term unamortized expenses
Unit: Yuan
Increase in this Amortization in this
Item Beginning balance Other decrease Ending balance
period period
Land acquisition fees 45,043,781 736,215 44,307,566
Afforestation fees 118,996,004 4,340,459 114,655,545
Renovation costs 103,895,364 3,431,789 100,463,575
Other 6,764,083 163,971 571,312 6,356,742
Total 274,699,232 163,971 9,079,775 265,783,428
7.18 Deferred income tax assets/liabilities
7.18.1 Un-offset deferred income tax assets
Unit: Yuan
Ending Balance Beginning Balance
Item Deductible temporary Deferred income Deductible temporary Deferred income
difference tax assets difference tax assets
Asset impairment provision 30,271,356 7,692,955 31,605,614 8,024,903
Unrealized profits from inter-company
320,491,415 80,122,854 431,328,252 107,832,063
transactions
Deductible loss 375,497,265 89,476,843 285,560,642 67,483,931
Unpaid bonus 113,790,791 28,447,698 132,673,269 33,168,317
Dismission welfare 6,441,635 1,610,409 9,422,154 2,355,538
Deferred income 34,530,599 7,449,099 38,389,058 8,288,411
Others 1,383,154 345,788 837,972 209,493
Total 882,406,215 215,145,646 929,816,961 227,362,656
7.18.2 Un-offset deferred income tax liabilities
Unit: Yuan
Ending Balance Beginning Balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income
difference liabilities difference tax liabilities
Assets appraisal appreciation in business
27,765,399 8,039,285 43,651,105 10,577,065
merger under non-common control
Others 3,579,479 894,870 2,759,468 689,867
Total 31,344,878 8,934,155 46,410,573 11,266,932
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7.18.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
Item Ending balance Beginning balance
Deductable temporary difference
Deductible loss 380,781,818 352,775,161
Total 380,781,818 352,775,161
7.18.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year Ending sum Beginning sum Remark
2023 22,801,737 22,801,737
2024 42,088,453 42,088,453
2025 75,724,538 75,724,538
2026 72,197,891 72,197,891
2027 139,962,542 139,962,542
2028 28,006,657
Total 380,781,818 352,775,161 --
7.19 Short-term loans
7.19.1 Classification of short-term loans
Unit: Yuan
Item Ending balance Beginning balance
Mortgage loan 232,810,003 127,908,137
Guaranteed loan 16,000,831 33,603,541
Fiduciary loan 100,075,000 227,866,802
Total 348,885,834 389,378,480
As at June 30, 2023, EUR mortgage loan was EUR 16,734,045 (equivalent of RMB
131,816,526 Yuan) (December 31, 2022: EUR 8,080,778, equivalent of RMB 59,982,807
Yuan) of accounts receivable factoring business handled by Hacienday Viedos Marques del
Atrio, S.L.U (“Atrio”) with banks including Banco de Sabadell, S.A.
As at June 30, 2023, USD mortgage loan was USD 13,625,000 (equivalent of RMB
98,541,259 Yuan) (December 31, 2022: USD 9,750,000, equivalent of RMB 67,925,330
Yuan) of loans borrowed by Chile Indomita Wine Group from Banco Scotiabank with the
fixed assets as collateral.
On June 30, 2023, AUD guaranteed loan was AUD 3,334,062 (equivalent of RMB
16,000,831 Yuan) (December 31, 2022: AUD 7,128,758, equivalent of RMB 33,603,541
Yuan) borrowed by Australia Kilikanoon Estate from ANZ Bank, and it is guaranteed by this
Company.
The balance includes 2,527,218 of interest due。
7.20 Accounts payable
7.20.1 List of accounts payable
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Unit: Yuan
Item Ending balance Beginning balance
Accounts payable for materials, etc. 417,210,497 503,323,746
Total 417,210,497 503,323,746
7.20.2 Explanation of significant accounts payable aged more than one year
Item Ending balance Reasons for outstanding or carryover
Unit 1 19,434,600 Payment for parent company
Overseas raw wine suppliers offer a
Unit 2 8,073,630
credit period exceeding one year
Total 27,508,230
7.21 Contract liabilities
Unit: Yuan
Item Ending balance Beginning balance
Advances from customers 135,643,228 164,437,033
Withholding of goods with sales rebate 1,290,958
Total 135,643,228 165,727,991
7.22 Employee remunerations payable
7.22.1 List of employee remunerations payable
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Short-term remuneration 173,197,491 166,002,478 210,292,353 128,907,616
2. Post-employment welfare – defined
331,893 27,094,268 27,406,641 19,520
contribution plan
3. Dismission welfare 9,422,154 1,099,333 4,079,852 6,441,635
4.Other welfare due within one year
Total 182,951,538 194,196,079 241,778,846 135,368,771
7.22.2 List of short-term remunerations
Unit: Yuan
Beginning Increase in this Decrease in this
Item Ending balance
balance period period
1. Salaries, bonuses, allowances and subsidies 169,643,402 141,156,089 185,471,062 125,328,429
2. Staff welfare 1,460,170 8,240,037 7,894,606 1,805,601
3. Social insurance charges 307,244 8,158,059 8,401,035 64,268
Including: Medical insurance 307,244 7,329,679 7,572,817 64,106
Injury insurance 826,682 826,520 162
Maternity insurance 1,698 1,698
4. Housing fund 38,582 6,402,542 6,394,122 47,002
5. Union fee and staff education fee 1,748,093 2,045,751 2,131,528 1,662,316
6. Short-term compensated absences
7. Short-term profit-sharing plan
Minus: Those divided into non-current
liabilities
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Beginning Increase in this Decrease in this
Item Ending balance
balance period period
Total 173,197,491 166,002,478 210,292,353 128,907,616
7.22.3 List of defined contribution plan
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment insurance 330,660 26,420,976 26,732,216 19,420
2. Unemployment insurance 1,233 673,292 674,425 100
3. Enterprise annuity payment
Total 331,893 27,094,268 27,406,641 19,520
7.22.4 Dismission welfare
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Compensation for server of labor relation
2. Compensation for early retirement 9,422,154 1,099,333 4,079,852 6,441,635
Total 9,422,154 1,099,333 4,079,852 6,441,635
7.23 Taxes and dues payable
Unit: Yuan
Item Ending balance Beginning balance
Value added tax 26,000,422 42,260,465
Consumption tax 24,511,397 45,524,174
Corporate income tax 134,483,218 131,264,991
Individual income tax 911,690 1,199,990
Urban maintenance and construction tax 3,010,065 1,899,840
Education surcharges 2,217,847 2,731,857
Urban land use tax 2,270,059 6,168,990
Other 9,059,128 8,645,595
Total 202,463,826 239,695,902
7.24 Other payables
Unit: Yuan
Item Ending balance Beginning balance
Interest payable 88,889
Dividends payable 393,855 70,317
Other payables 373,351,763 372,449,483
Total 373,745,618 372,608,689
7.24.1 Interest payable
Unit: Yuan
Item Ending balance Beginning balance
Interest of long-term loans with interest paid by
installment and principal paid on maturity
Interest of corporate bonds
Interest payable of short-term loans 88,889
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Ending balance Beginning balance
Interest of preferred shares\ perpetual bonds
divided into financial liabilities
Other
Total 88,889
7.24.2 Dividends payable
Unit: Yuan
Item Ending balance Beginning balance
Ordinary stock dividends
Preferred stock dividends/sustainable debt
dividends divided into equity instruments
Other 393,855 70,317
Total 393,855 70,317
7.24.3 Other payables
7.24.3.1 Other payables listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Dealer’s deposit payable 197,378,796 207,492,570
Equipment purchase and construction costs
16,165,461 15,976,573
payable
Transportation charges payable 12,339,582 25,894,816
Advertisement expenses payable 40,562,800 40,244,601
Employee cash deposit 508,175 508,175
Supplier’s deposit payable 14,919,515 13,549,010
Contracting fees payable 4,340,562 7,407,093
Other 87,136,872 61,376,645
Total 373,351,763 372,449,483
7.24.3.2 Explanation of significant accounts payable aged more than one year
As at June 30, 2023, there were no significant accounts payable aged more than one year.
7.25 Non-current liabilities due within one year
Unit: Yuan
Item Ending balance Beginning balance
Long-term loans due within one year 98,331,009 103,011,894
Bonds payable due within one year
Long-term accounts payable due within one year 22,000,000 22,000,000
Lease liabilities due within one year 23,433,390 19,008,940
Total 143,764,399 144,020,834
7.26 Other current liabilities
Item Ending balance Beginning balance
Unamortized VAT amount 16,989,679 18,945,706
Accrued interest on long-term loans 697,977
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Total 17,687,656 18,945,706
7.27 Long-term loans
7.27.1 Classification of long-term loans
Unit: Yuan
Item Ending balance Beginning balance
Guaranteed loan 45,437,416 44,781,100
Fiduciary loan 134,854,819 186,342,909
Minus: Long-term loans due within one year 98,331,009 103,011,894
Total 81,961,226 128,112,115
As at June 30, 2023, fiduciary loans (EUR) were EUR 17,119,567 (equivalent of RMB
134,854,819 Yuan) (December 31, 2022: EUR 25,103,788, equivalent of RMB 186,342,909
Yuan) borrowed by Atrio from Banco Sabadell, Bankia, Banco Santander, BBVA and Caja
Rural de Navarr etc. Guaranteed loans (AUD) were AUD 9,500,000 (equivalent of RMB
45,437,416 Yuan) (December 31, 2022: AUD 9,500,000, equivalent of RMB 44,781,100
Yuan) borrowed by Australia Kilikanoon Estate from ANZ Bank and it is guaranteed by this
Company.
7.28 Lease Liabilities
Unit: Yuan
Item Ending balance Beginning balance
Long-term lease liabilities 117,902,746 128,514,033
Minus: Lease liabilities due within one year 23,433,390 19,008,940
Total 94,469,356 109,505,093
7.29 Long-term accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Long-term accounts payable 20,000,000 42,000,000
Special accounts payable
Total 20,000,000 42,000,000
7.29.1 Long-term accounts payable listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Agricultural Development Fund of China (“CADF”) 42,000,000 64,000,000
Minus: Long-term payables due within one year 22,000,000 22,000,000
Balance of long-term payables 20,000,000 42,000,000
In 2016, Agricultural Development Fund invested RMB 305,000,000 Yuan in the Research,
Development & Manufacture Company, accounting for 37.9% of the registered capital.
According to the investment agreement, it is agreed that Agricultural Development Fund will
take back the investment fund in ten years and obtain fixed income according to year, which
is 1.2% of the remaining principal. Except for the above fixed income, the Agricultural
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Development Fund shall not enjoy other profits of the Research, Development & Manufacture
Company or bear the losses of the Research, Development & Manufacture Company.
Accordingly, the investment of the Agricultural Development Fund in the Research,
Development & Manufacture Company is equity investment nominally, which is debt
investment (finance discount interest loan) in deed. The Group included the investment of the
Agricultural Development Fund in long-term accounts payable measured by amortized cost.
From January to June 2023, the Group gave back the principal of RMB 22,000,000 Yuan.
Refer to Note 7.53 for details of mortgaged and pledged assets.
7.30 Deferred income
Unit: Yuan
Beginning Increase in this Decrease in this
Item Ending balance Forming reason
balance period period
Governmental subsidy 41,295,338 4,510,491 36,784,847
Total 41,295,338 4,510,491 36,784,847 --
Projects related to governmental subsidy
Unit: Yuan
Amount of Amount Amount
Amount
subsidy included in included Related to
Beginning offset the Other Ending
Item of liabilities newly non-operating in other assets/
balance cost changes balance
increased in revenue in this income in income
expenses
this period period this period
Industrial development Related to
16,400,000 2,050,000 14,350,000
supporting funds assets
Xinjiang industrial
revitalisation and Related to
9,954,000 711,000 9,243,000
technological assets
transformation project
Subsidy for retaining wall Related to
5,973,333 319,000 5,654,333
assets
Special funds for cellar Related to
2,079,711 2,079,711
maintenance assets
Wine fermentation
Related to
capacity construction 1,600,000 200,000 1,400,000
assets
(Huanren) project
Special funds for efficient
Related to
water-saving irrigation 991,000 81,000 910,000
assets
project
Information-based system
construction engineering Related to
580,000 290,000 290,000
technical transformation assets
project
Subsidy for economic and
energy-saving Related to
513,200 64,150 449,050
technological assets
transformation projects
Subsidy for mechanic
Related to
development of Penglai 90,408 67,590 22,818
assets
Daliuhang Base
Special fund for Yantai
Related to
City Innovation Driven 172,406 68,219 104,187
income
Development
Prize for Yantai Mayor’s Related to
35,000 7,500 27,500
Cup Industrial Design income
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Amount of Amount Amount
Amount
subsidy included in included Related to
Beginning offset the Other Ending
Item of liabilities newly non-operating in other assets/
balance cost changes balance
increased in revenue in this income in income
expenses
this period period this period
Competition
Total 38,389,058 3,858,459 34,530,599
7.31 Share capital
Unit: Yuan
Increase or decrease (+,-) in this period
Beginning Ending
balance Newly issued Allocated Share transferred from balance
Other Subtotal
shares shares accumulation fund
Total shares 685,464,000 685,464,000
7.32 Capital reserves
Unit: Yuan
Decrease in this
Item Beginning balance Increase in this period Ending balance
period
Capital premium (Share
519,052,172 1,091,508 517,960,664
capital premium)
Other capital reserves 5,916,588 671,300 6,587,888
Total 524,968,760 671,300 1,091,508 524,548,552
The decrease in capital premium of 1,091,508 Yuan in this period is due to the acquisition of
minority shareholders’ equity; and the increase in other capital reserves of 671,300 Yuan in
this period is due to the recognition of share-based payments.
7.33 Other comprehensive income
Unit: Yuan
Amount incurred in this period
Amount Minus: amount Minus: amount
Beginning incurred included in other included in other Minus: Attributable Attributable Ending
Item comprehensive comprehensive
balance before income to parent to minority balance
income before income before
income tax and transferred to and transferred to tax company shareholders
in this profit or loss in retained earnings expenses after tax after tax
period this period in this period
1. Other comprehensive
income not to be
reclassified into profit
and loss later
Including: Changes after
remeasuring and
resetting the benefit
plans
Other
comprehensive income
not to be reclassified
into profit and loss
under equity method
Changes in the
fair value of other
investments in equity
instruments
Changes in the
fair value of the
enterprise’s own credit
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Amount incurred in this period
Amount Minus: amount Minus: amount
Beginning incurred included in other included in other Minus: Attributable Attributable Ending
Item comprehensive comprehensive
balance before income to parent to minority balance
income before income before
income tax and transferred to and transferred to tax company shareholders
in this profit or loss in retained earnings expenses after tax after tax
period this period in this period
risk
2. Other comprehensive
income to be reclassified -23,760,238 13,707,142 12,136,065 1,571,077 -11,624,173
into profit and loss later
Including: Other
comprehensive income
to be reclassified into
profit and loss under
equity method
Changes in the
fair value of other debt
investments
Amount of
financial assets
reclassified into other
comprehensive income
Provision for
credit impairment of
other credit investments
Provision for
cash-flow hedge
Difference in
translation of Foreign
-23,760,238 13,707,142 12,136,065 1,571,077 -11,624,173
Currency Financial
Statement
Total other
-23,760,238 13,707,142 12,136,065 1,571,077 -11,624,173
comprehensive income
7.34 Surplus reserves
Unit: Yuan
Decrease in this
Item Beginning balance Increase in this period Ending balance
period
Legal surplus reserves 342,732,000 342,732,000
Free surplus reserves
Reserve fund
Enterprise expansion fund
Other
Total 342,732,000 342,732,000
7.35 Undistributed profit
Unit: Yuan
Item Ending balance Beginning balance
Undistributed profit at the end of prior period before adjustment 9,049,649,211 8,929,426,600
Total Undistributed profit at the beginning of the period before adjustment
(increase listed with+ , and decrease listed with -)
Undistributed profit at the beginning of the period after adjustment 9,049,649,211 8,929,426,600
Plus: Net profit for owner of the parent company 363,569,436 428,681,411
Minus: Drawn legal surplus
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Drawn free surplus
Drawn common risk provision
Common dividend payable 308,458,800 308,458,800
Common dividend transferred to share capital
Undistributed profit at the end of period 9,104,759,847 9,049,649,211
7.36 Operating income and operating cost
7.36.1 Details of operating income
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 1,934,472,124 796,260,619 1,929,907,550 817,568,906
Other business 32,266,361 9,198,773 23,184,585 4,286,560
Total 1,966,738,485 805,459,392 1,953,092,135 821,855,466
Including: Income from contracts 1,965,668,542 804,756,028 1,952,022,192 821,152,102
Income from house rents 1,069,943 703,364 1,069,943 703,364
7.36.2 Situation of income from contracts
Unit: Yuan
Contract classification Amount incurred in this period
Type of merchandise
- Alcoholic beverage 1,934,472,124
- Others 31,196,418
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 1,965,668,542
7.37 Taxes and surcharges
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 83,799,789 75,570,111
Urban maintenance and construction tax 13,221,014 11,339,556
Education surcharges 9,591,885 8,217,554
Building tax 17,081,105 13,700,072
Land use tax 5,443,389 5,662,279
Vehicle and vessel use tax 13,298 16,152
Stamp duty 2,190,579 155,653
Other 106,007 78,241
Total 131,447,066 114,739,618
123
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
7.38 Selling expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Salary and welfare expenses 133,331,239 129,577,551
Marketing expenses 150,784,963 131,324,948
Labor expenses 18,891,110 18,445,967
Depreciation expenses 31,599,626 29,955,199
Storage expenses 13,287,122 13,459,898
Advertisement expenses 25,707,453 24,366,253
Trademark use fees 11,320,305 10,512,100
Travel expenses 12,462,566 9,343,468
Design & production expenses 9,833,969 9,037,718
Conference expenses 4,528,120 3,106,738
Water, electricity and gas charges 4,658,860 5,393,494
Other 36,596,377 33,241,085
Total 453,001,710 417,764,419
7.39 Management expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Employee remunerations 30,200,207 32,561,222
Depreciation expenses 50,660,829 39,755,608
Contracting expenses 2,119,800 2,119,800
Repair expenses 1,865,967 6,115,206
Office expenses 10,169,392 10,774,571
Amortization expenses 8,377,335 9,457,449
Afforestation fees 6,950,800 6,811,054
Safe production costs 3,124,162 5,358,613
Business entertainment expenses 1,373,098 1,498,647
Public security & clean-keeping
3,539,193 3,385,138
expenses
Travel expenses 1,235,690 832,989
Other 9,078,922 8,833,973
Total 128,695,395 127,504,270
7.40 R&D expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 6,653,626 5,509,656
Total 6,653,626 5,509,656
7.41 Financial expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 12,325,532 11,201,775
Minus: Interest income 9,060,578 10,191,697
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Plus: Commission charges 662,758 701,200
Exchange gain or loss -701,279 4,374,160
Total 3,226,433 6,085,438
7.42 Other income
Unit: Yuan
Source of other income Amount incurred in this period Amount incurred in prior period
Industrial development supporting funds 2,050,000 2,050,000
Wine fermentation capacity construction (Huanren) project 200,000 200,000
Xinjiang industrial revitalization and technological
711,000 711,000
transformation project
Special subsidy for supporting infrastructure 530,000
Other – related to assets 821,740 931,913
Special funds for supporting corporate development 14,840,000 8,222,076
Other – related to income 10,348,445 8,984,256
Total 28,971,185 21,629,245
7.43 Investment income
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Investment income from long-term equity by equity
-932,588 -921,317
method
Investment income from disposal of long-term equity 16,547,124
Investment income gained from trading financial assets
during the holding period
Investment income gained from disposal of trading
financial assets
Dividend income gained from other equity instruments
during the holding period
Gains generated from the remaining equity remeasured
as per fair value after the loss of control
Interest income gained from equity inverstment during
the holding period
Interest income gained from other equity inverstments
during the holding period
Investment income gained from disposal of other equity
inverstments
Total 15,614,536 -921,317
7.44 Loss on impairment of credit
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Loss on bad debts of accounts receivable -993,494 486,076
Total -993,494 486,076
7.45 Loss on impairment of assets
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
1. Loss on bad debts
125
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
2. Inventory falling price loss and loss on
-244,434 1,490,900
impairment of contrct execution cost
3. Loss on impairment of long-term equity
investment
4. Loss on impairment of investment real estate
5. Loss on impairment of fixed assets
6. Loss on impairment of engineering materials
7. Loss on impairment of construction in progress
8. Loss on impairment of productive biological
assets
9. Loss on impairment of oil and gas assets
10. Loss on impairment of intangible assets
11. Loss on impairment of goodwill
12. Loss on impairment of contract assets
13. Other
Total -244,434 1,490,900
7.46 Income from asset disposal
Unit: Yuan
Source of income from asset disposal Amount incurred in this period Amount incurred in prior period
Income from disposal of fixed assets 341,232 -8,239,072
Income from productive biological assets -639,633
Total -298,401 -8,239,072
7.47 Non-operating income
Unit: Yuan
Amount incurred Amount incurred in Amount included in the current
Item
in this period prior period non-recurring profits/losses
Gains on exchange of non-monetary assets
Grains on donations
Governmental subsidy
Gains on scrap of non-current assets 9,800
Others 1,772,522 2,438,813 1,772,522
Total 1,772,522 2,448,613 1,772,522
7.48 Non-operating expenses
Unit: Yuan
Amount incurred Amount incurred in Amount included in the current
Item
in this period prior period non-recurring profits/losses
Loss on exchange of non-monetary assets
Donation 900,000 310,000 900,000
Loss on scrap of non-current assets 20,717 139,401 20,717
Fine, penalty and overdue fine paid due to
104,298 579,688 104,298
violation of laws and administrative regulations
Others 1,100,930 314,443 1,100,930
Total 2,125,945 1,343,532 2,125,945
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
7.49 Income tax expenses
7.49.1 List of income tax expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Current income tax expenses 120,466,280 73,145,468
Deferred income tax expenses 9,884,233 55,044,281
Total 130,350,513 128,189,749
7.49.2 Adjustment process of accounting profit and income tax expenses
Unit: Yuan
Item Amount incurred in this period
Total profit 480,950,832
Income tax expenses calculated according to the legal/applicable tax rate 120,237,708
Influence of different tax rates applicable to subsidiary 403,016
Influence of income tax in the term before adjustment 2,828,018
Influence of nontaxable income
Influence of non-deductible costs, expenses and losses 851,758
Influence of deductible loss from use of unconfirmed deferred income tax assets in prior
-824,102
period
Influence of deductible temporary difference or deductible loss of unconfirmed deferred
6,854,115
income tax assets in this period
Income tax expense 130,350,513
7.50 Other comprehensive incomes
Refer to Note 7.33 for details.
7.51 Items of cash flow statement
7.51.1 Other cash received related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 24,849,782 17,118,754
Interest income 8,892,658 9,195,398
Net amercement income 254,866 276,749
Others 13,253,796 3,545,416
Total 47,251,102 30,136,317
7.51.2 Other cash paid related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 242,901,628 232,451,841
Administrative expenses 41,163,720 45,725,346
Others 8,743,269 12,916,682
Total 292,808,617 291,093,869
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
7.51.3 Other cash received related to investing activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Net cash received from acquiring subsidiaries 657,049
Total 657,049
7.51.4 Other cash paid related to financing activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Cash paid for leasing 11,384,300 9,765,810
Cash paid for acquiring minority shareholders’
14,623,400
equity
Capital reduction paid to minority shareholders 12,000,000
Total 38,007,700 9,765,810
7.52 Supplementary information to cash flow statement
7.52.1 Supplementary information to cash flow statement
Unit: Yuan
Amount incurred in this Amount incurred in prior
Supplementary materials
period period
1. Cash flows from operating activities calculated by adjusting
-- --
the net profit:
Net profit 350,600,319 346,994,432
Plus: Provision for impairment of assets 1,237,928 -1,976,976
Depreciation of fixed assets, oil-and-gas assets and productive
164,005,102 157,778,809
biological assets
Depreciation of right-of-use assets 11,082,444 11,051,483
Amortization of intangible assets 8,936,336 10,000,383
Amortization of long-term deferred expenses 9,079,775 9,845,289
Losses on disposal of fixed assets, intangible assets and other
298,401 8,239,072
long-term assets (profit listed with “-”)
Losses on retirement of fixed assets (profit listed with “-”) 20,717 129,601
Losses on fair value change (profit listed with “-”)
Financial costs (profit listed with “-”) 10,419,504 9,960,206
Investment losses (profit listed with “-”) -15,614,536 921,317
Decrease in deferred income tax assets (increase listed with
12,217,010 55,773,513
“-”)
Increase of deferred income tax liabilities (decrease listed
-2,332,777 -729,232
with “-”)
Decrease in inventories (increase listed with “-”) -22,578,567 -29,711,487
Decrease in operating receivables (increase listed with “-”) 217,964,425 389,398,124
Increase in operating payable (decrease listed with “-”) -218,087,595 -361,400,939
Other 671,300
Net cash flows from operating activities 527,919,786 606,273,595
2. Significant investment and financing activities not
involving cash deposit and withdrawal:
Debt transferred into assets
128
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Amount incurred in this Amount incurred in prior
Supplementary materials
period period
Convertible corporate bond due within 1 year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent:
Ending balance of cash 1,423,080,779 1,839,856,934
Minus: Beginning balance of cash 1,612,753,600 1,502,327,029
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent -189,672,821 337,529,905
7.52.2 Net cash paid for acquiring subsidiaries in this period
Unit: Yuan
Amount
Cash and cash equivalents paid in this period for business
5,537,700
combinations incurred in this period
Including:
Weimeisi Shanghai 5,537,700
Minus: Cash and cash equivalents held by the subsidiary on
6,194,749
acquisition date
Including:
Weimeisi Shanghai 6,194,749
Plus: Cash and cash equivalents paid in this period for
business combinations incurred in previous period
Including:
Net cash paid for acquiring subsidiaries -657,049
7.52.3 Net cash received from disposal of subsidiaries in this period
Unit: Yuan
Amount
Cash and cash equivalents received in this period from
9,690,000
disposal of subsidiaries in this period
Including:
Xinjiang Tianzhu 9,690,000
Minus: Cash and cash equivalents held by the subsidiary on
2,451,415
the date of loss of control
Including:
Xinjiang Tianzhu 2,451,415
Plus: Cash and cash equivalents received in this period from
disposal of subsidiaries in previous period
Including:
Net cash received from disposing subsidiaries 7,238,585
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
7.52.4 Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
1. Cash 1,423,080,779 1,612,753,600
Including: Cash on hand 59,243 47,954
Bank deposits available for payment at any time 1,423,021,536 1,612,705,646
Other monetary funds available for payment at any time
Deposits with central bank available for payment
2. Cash equivalents
Including: Bond investment due within three months
3. Balance of cash and cash equivalents at the end of period 1,423,080,779 1,612,753,600
7.53 Assets with ownership or use right restrictions
Unit: Yuan
Item Ending book value Reason for restriction
Monetary capital 9,788,446 L/C deposit, housing fund, etc.
Accounts receivable 64,860,399 Pledge of short-term loans
Pledge of short-term loans, long-term loans and
Fixed assets 294,202,438
long-term accounts payable
Intangible assets 166,920,626 Pledge of long-term accounts payable
Total 535,771,909 --
7.54 Monetary items of foreign currency
7.54.1 Monetary items of foreign currency
Ending balance at foreign Ending balance at RMB
Item Converted exchange rate
currency equivalent
Monetary capital -- -- 3,246,928
Including: USD 449,279 7.2258 3,246,400
EUR 67 7.8771 528
HKD
Accounts receivable -- -- 50,452,445
Including: USD 5,819,882 7.2258 42,053,303
EUR 303,383 7.8771 2,389,778
CAD 1,107 5.4721 6,058
GBP 656,587 9.1432 6,003,306
Short-term borrowing -- -- 98,451,525
Including: USD 13,625,000 7.2258 98,451,525
EUR
HKD
-- --
7.54.2 The Company’s overseas subsidiaries determine their functional currency based on the
currency in the main economic environment in which they operate. The functional currency of
Atrio and Francs Champs Participations SAS (“Farshang Holdings”) is Euro, the functional
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currency of Chile Indomita Wine Group is Chilean Peso, and the functional currency of
Australia Kilikanoon Estate is Australian Dollar.
8. Change of scope of consolidation
8.1 Business combination under non-common control
8.1.1 Business combination under non-common control incurred in this period
Unit: Yuan
Net profit
Income of
of
acquired
Proportion Basis for acquired
Name of Date of Cost of Method of party from
of Acquisition determining party from
acquired obtaining obtaining obtaining acquisition
obtaining date acquisition acquisition
party equity equity equity date to the
equity date date to the
end of the
end of the
period
period
Weimeisi February February 1, Actual
5,537,000 70% Cash -3,000
Shanghai 1, 2023 2023 control
8.1.2 Combination cost and goodwill
Unit: Yuan
Combination cost Amount
--Cash 5,537,700
--Fair value of non-cash assets
--Fair value of liabilities issued or undertaken
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity held before acquisition date on acquisition date 2,373,285
--Others
Total combination cost 7,910,985
Minus: Fair value share of identifiable net assets acquired 7,910,985
Amount of goodwill/combination cost less than the fair value share of identifiable net assets acquired
8.1.3 Identifiable assets and liabilities of acquired party on acquisition date
Unit: Yuan
Items Fair value on acquisition date Book value on acquisition date
Assets:
Monetary capital 6,390,637 6,390,637
Accounts receivables 44,357 44,357
Inventories 1,356,577 1,356,577
Fixed assets
Intangible assets
Other current assets 124,023
Liabilities:
Borrowings
Accounts payable 4,609 4,609
131
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Items Fair value on acquisition date Book value on acquisition date
Deferred income tax liabilities
Net assets 7,910,985 7,910,985
Minus: Minority shareholders’ equity
Net assets acquired 7,910,985 7,910,985
8.1.4 Gains or losses arising from remeasuring equity held before acquisition date at fair
value
Unit: Yuan
Amount
Determination
transferred from
Gains or losses method and main
Book value of Fair value of other
arising from assumptions of
equity originally equity originally comprehensive
remeasuring fair value of
Name of acquired held before held before incomes related to
equity originally equity originally
party acquisition date acquisition date equity originally
held before held before
on acquisition on acquisition held before
acquisition date at acquisition date
date date acquisition date to
fair value on acquisition
investment
date
income
Weimeisi
2,373,285 2,373,285
Shanghai
8.2 Disposal of subsidiaries
Unit: Yuan
Difference
Amount
between disposal
Determination transferred
price and
Proportion Book Fair value Gains or method and from other
consolidated
of value of of losses main comprehensive
Basis for financial
Proportion Method remaining remaining remaining arising from assumptions incomes related
Name of Price of Date of loss determining statement level
of equity of equity equity on equity on equity on remeasuring of fair value to investment
subsidiary equity disposal of control date of loss share of the
disposal disposal the date the date the date remaining of remaining of original
of control subsidiary’s
of loss of of loss of of loss of equity at equity on the subsidiary
net assets
control control control fair value date of loss equity to
corresponding
of control investment
to disposal
profits and loss
investment
Xinjiang June 30, Transfer
12,090,000 100% Transfer 16,547,124
Tianzhu 2023 of control
9. Equity in other entities
9.1 Equity in subsidiaries
9.1.1 Constitution of enterprise group
Principal Proportion of
Registration Business shareholding
Name of subsidiary business Acquisition mode
place nature
location Direct Indirect
132
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Principal Proportion of
Registration Business shareholding
Name of subsidiary business Acquisition mode
place nature
location Direct Indirect
Acquired from a business
Etablissements Roullet Cognac,
Cognac, France Trading 100% combination under
Fransac (“Roullet Fransac”) France
non-common control
Acquired from a business
Navarre,
Dicot Partners, S.L (“Dicot”) Navarre, Spain Sales 90% combination under
Spain
non-common control
Via Indómita,S.A.,Via Dos
Andes,S.A., and Bodegas Santiago, Acquired by establishment
Santiago, Chile Sales 85%
Santa Alicia SpA. (“Chile Chile or investment
Indomita Wine Group”)
Kilikanoon Estate Pty Ltd Acquired from a business
Adelaide, Adelaide,
(“Australia Kilikanoon Sales 97.5% combination under
Australia Australia
Estate”) non-common control
Beijing Changyu Sales and
Acquired by establishment
Distribution Co., Ltd. Beijing, China Beijing, China Sales 100%
or investment
(“Beijing Sales”)
Yantai, Yantai,
Yantai Kylin Packaging Co., Acquired by establishment
Shandong, Shandong, Manufacturing 100%
Ltd. (“Kylin Packaging”) or investment
China China
Yantai Chateau Yantai, Yantai,
Acquired by establishment
Changyu-Castel Co., Ltd. Shandong, Shandong, Manufacturing 70%
or investment
(“Chateau Changyu”) (a) China China
Xianyang,
Changyu (Jingyang) Wine Co., Xianyang, Acquired by establishment
Shaanxi, Manufacturing 90% 10%
Ltd. (“Jingyang Wine”) Shaanxi, China or investment
China
Yantai Changyu Pioneer Wine Yantai, Yantai,
Acquired by establishment
Sales Co., Ltd. (“Sales Shandong, Shandong, Sales 100%
or investment
Company”) China China
Langfang Development Zone
Langfang, Langfang, Acquired by establishment
Castel-Changyu Wine Co., Manufacturing 39% 10%
Hebei, China Hebei, China or investment
Ltd. (“Langfang Castel”)
Changyu (Jingyang) Wine Xianyang,
Xianyang, Acquired by establishment
Sales Co., Ltd. (“Jingyang Shaanxi, Sales 10% 90%
Shaanxi, China or investment
Sales”) China
Langfang Changyu Pioneer
Langfang, Langfang, Acquired by establishment
Wine Sales Co., Ltd. Sales 10% 90%
Hebei, China Hebei, China or investment
(“Langfang Sales”)
Shanghai Changyu Sales and
Shanghai, Acquired by establishment
Distribution Co., Ltd. Shanghai, China Sales 100%
China or investment
(“Shanghai Sales”)
Beijing Changyu AFIP
Agriculture development Co., Miyun, Beijing, Miyun, Acquired by establishment
Sales 100%
Ltd. (“Agriculture China Beijing, China or investment
Development”)
Beijing Chateau Changyu
91.53 Acquired by establishment
AFIP Global Co., Ltd. Beijing, China Beijing, China Manufacturing
% or investment
(“AFIP”) (b)
Yantai, Yantai,
Yantai Changyu Wine Sales Acquired by establishment
Shandong, Shandong, Sales 90% 10%
Co., Ltd. (“Wines Sales”) or investment
China China
Yantai Changyu Pioneer Yantai, Yantai,
Acquired by establishment
International Co., Ltd. Shandong, Shandong, Sales 70% 30%
or investment
(“Pioneer International”) China China
Hangzhou Changyu Wine Hangzhou, Hangzhou, Acquired by establishment
Sales 100%
Sales Co., Ltd. (“Hangzhou Zhejiang, China Zhejiang, or investment
133
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Principal Proportion of
Registration Business shareholding
Name of subsidiary business Acquisition mode
place nature
location Direct Indirect
Changyu”) China
Ningxia Changyu Grape
Yinchuan, Ningxia, Acquired by establishment
Growing Co., Ltd. (“Ningxia Planting 100%
Ningxia, China China or investment
Growing”)
Huanren Changyu National Benxi,
Benxi, Liaoning, Acquired by establishment
Wines Sales Co., Ltd. Liaoning, Sales 100%
China or investment
(“National Wines”) China
Liaoning Changyu Golden Benxi,
Benxi, Liaoning, Acquired by establishment
Icewine Valley Co., Ltd. Liaoning, Manufacturing 100%
China or investment
(“Golden Icewine Valley”) China
Yantai Development Zone
Yantai, Yantai,
Changyu Trading Co., Ltd. Acquired by establishment
Shandong, Shandong, Sales 100%
(“Development Zone or investment
China China
Trading”)
Beijing AFIP Meeting Center Miyun, Beijing, Miyun, Acquired by establishment
Services 100%
(“Meeting Center”) China Beijing, China or investment
Beijing AFIP Tourism and Miyun, Beijing, Miyun, Acquired by establishment
Tourism 100%
Culture (“AFIP Tourism”) China Beijing, China or investment
Changyu (Ningxia) Wine Co., Ningxia, Acquired by establishment
Ningxia, China Manufacturing 100%
Ltd. (“Ningxia Wine”) China or investment
Yantai Changyu Chateau Yantai, Yantai,
Wholesale and Acquired by establishment
Tinlot Co., Ltd. (“Chateau Shandong, Shandong, 65% 35%
retail or investment
Tinlot”) China China
Xinjiang Chateau Changyu Shihezi,
Shihezi, Acquired by establishment
Baron Balboa Co., Ltd. Xinjiang, Manufacturing 100%
Xinjiang, China or investment
(“Chateau Shihezi”) China
Ningxia Chateau Changyu Yinchuan,
Yinchuan, Acquired by establishment
Longyu Co., Ltd. (“Chateau Ningxia, Manufacturing 100%
Ningxia, China or investment
Ningxia”) China
Shaanxi Chateau Changyu Xianyang,
Xianyang, Acquired by establishment
Rena Co., Ltd. (“Chateau Shaanxi, Manufacturing 100%
Shaanxi, China or investment
Chang’an”) China
Yantai Changyu Wine
Yantai, Yantai,
Research & Development 92.25 Acquired by establishment
Shandong, Shandong, Manufacturing
Centre Co., Ltd. (“R&D % or investment
China China
Centre”) (c)
Benxi,
Changyu (HuanRen) Wine Benxi, Liaoning, Wine-making Acquired by establishment
Liaoning, 100%
Co., Ltd. (“Huan Ren Wine”) China project or investment
China
Shihezi,
Xinjiang Changyu Sales Co., Shihezi, Acquired by establishment
Xinjiang, Sales 100%
Ltd. (“Xinjiang Sales”) Xinjiang, China or investment
China
Yinchuan,
Ningxia Changyu Trading Co., Yinchuan, Acquired by establishment
Ningxia, Sales 100%
Ltd. (“Ningxia Trading”) Ningxia, China or investment
China
Shaanxi Changyu Rena Wine Xianyang,
Xianyang, Acquired by establishment
Sales Co., Ltd. (“Shaanxi Shaanxi, Sales 100%
Shaanxi, China or investment
Sales”) China
Penglai, Penglai,
Penglai Changyu Wine Sales Acquired by establishment
Shandong, Shandong, Sales 100%
Co., Ltd. (“Penglai Wine”) or investment
China China
Laizhou, Laizhou,
Laizhou Changyu Wine Sales Acquired by establishment
Shandong, Shandong, Sales 100%
Co., Ltd. (“Laizhou Sales”) or investment
China China
Francs Champs Participations Cognac, France Cognac, Investment 100% Acquired by establishment
134
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Principal Proportion of
Registration Business shareholding
Name of subsidiary business Acquisition mode
place nature
location Direct Indirect
SAS (“Francs Champs”) France and trading or investment
Yantai Roullet Fransac Wine Yantai, Yantai,
Acquired by establishment
Sales Co., Ltd. (“Yantai Shandong, Shandong, Sales 100%
or investment
Roullet Fransac”) China China
Yantai Changyu Wine Sales Yantai, Yantai,
Acquired by establishment
Co., Ltd. (“Wine Sales Shandong, Shandong, Sales 100%
or investment
Company”) China China
Shaanxi Chateau Changyu Xianxin,
Xianxin, Acquired by establishment
Rena Tourism Co., Ltd. Shaanxi, Tourism 100%
Shaanxi, China or investment
(“Chateau Tourism”) China
Yantai, Yantai,
Longkou Changyu Wine Sales Acquired by establishment
Shandong, Shandong, Sales 100%
Co., Ltd. (“Longkou Sales”) or investment
China China
Yantai Changyu Cultural
Yantai, Yantai,
Tourism Development Co., Ltd. Acquired by establishment
Shandong, Shandong, Tourism 100%
(“Changyu Cultural Tourism or investment
China China
Company”)
Yantai Changyu Wine Culture Yantai, Yantai,
Acquired by establishment
Museum Co., Ltd. Shandong, Shandong, Tourism 100%
or investment
(“Museum”) China China
Yantai Changyu Cultural Yantai, Yantai,
Acquired by establishment
Tourism Product Sales Co., Ltd.Shandong, Shandong, Tourism 100%
or investment
(“Cultural Sales”) China China
Yantai Changyu Window of Yantai, Yantai,
Acquired by establishment
International Wine City Co. Shandong, Shandong, Tourism 100%
or investment
Ltd. (“Window of Wine City”) China China
Yantai, Yantai,
Yantai Chateau Koya Brandy Acquired by establishment
Shandong, Shandong, Manufacturing 100%
Co., Ltd. (“Chateau Koya”) or investment
China China
Changyu (Shanghai)
International Digital Shanghai, Acquired by establishment
Shanghai, China Sales 100%
Marketing Center Co., Ltd. China or investment
(“Digital Marketing”)
Tianjin Changyu Yixin Digital
Acquired by establishment
Technology Co., Ltd. (“Tianjin Tianjin, China Tianjin, China Sales 51%
or investment
Yixin”)
Shanghai Changyu Yixin Hongkou
Hongkou
Digital Technology Co., Ltd. District, Acquired by establishment
District, Sales 51%
(“Shanghai Yixin”) Shanghai, or investment
Shanghai, China
China
Shanghai Changyu Guoqu
Shanghai, Acquired by establishment
Digital Technology Co., Ltd. Shanghai, China Sales 51%
China or investment
(“Shanghai Guoqu”)
Yantai Christon Catering Co., Yantai, Yantai,
Acquired by establishment
Ltd. (“Christon Catering”) Shandong, Shandong, Catering 100%
or investment
China China
Weimeisi (Shanghai) Hongkou
Hongkou Business combination
Enterprise Development Co., District,
District, Sales 100% under non-common
Ltd. (“Weimeisi Shanghai”) Shanghai,
Shanghai, China control
China
Explanation for difference between the proportion of shareholding and proportion of voting
power in the subsidiaries:
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(a) Chateau Changyu is a Sino-foreign joint venture established by the Group and a foreign
investor, accounting for 70% of Changyu Chateau’s equity interest. Through agreement
arrangement, the Group has the full power to control Changyu Chateau’s strategic operating,
investing and financing policies.
(b) AFIP is a limited liability company jointly established by the Group and Yantai De’an and
Beijing Qinglang. In June 2019, Yantai Dean transferred 1.31% of its equity to Yantai
Changyu.After the equity change, the Group holds 91.53% of its equity. Through agreement
arrangement, the Group has the full power to control AFIP’s strategic operating, investing and
financing policies. The agreement arrangement will be terminated on September 2, 2024.
(c) The Research, Development & Manufacture Company is a joint venture established by the
Group and Agricultural Development Fund, whose 92.25% of the shares were held by the
Group on June 30, 2023. As stated in Note 7.29, the Group exercises full control over the
operation, investment and financing policies of the Research, Development & Manufacture
Company by contract arrangement. The contract arrangement will expire on May 22, 2026.
Up to June 30, 2023, the remaining investment of the Agricultural Development Fund
accounted for 7.75% of the registered capital.
9.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
Shareholding Profit/loss attributable Other comprehensive Dividend declared to Balance of minority
Name of proportion of to minority income attributable to be distributed to shareholder’s
subsidiary minority shareholders in this minority shareholders minority shareholders interest at the end of
shareholders period in this period in this period period
AFIP 8.47% 56,409,393
Indomita Wine 15% -884,056 1,018,109 57,398,559
Explanation for difference between the proportion of shareholding and proportion of voting
power of the minority shareholders in the subsidiaries: See details in Note 8.1.1.
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9.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance Beginning balance
Name of subsidiary Non-current Current Non-current Total Non-current Current Non-current Total
Current assets Total assets Current assets Total assets
assets liabilities liabilities liabilities assets liabilities liabilities liabilities
AFIP 278,777,134 392,916,676 671,693,810 36,970,412 3,089,342 40,059,754 251,902,602 399,165,555 651,068,157 22,424,425 3,020,582 25,445,007
Indomita Wine 231,117,642 324,071,744 555,189,386 153,663,101 11,311,586 164,974,687 221,192,234 320,233,623 541,425,857 140,793,252 11,311,586 152,104,838
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Name of
subsidiary Total comprehensive Operating cash Total comprehensive
Operating income Net profit Operating income Net profit Operating cash flow
income flow income
AFIP 116,672,301 6,010,906 6,010,906 7,318,097 88,990,033 -365,257 -365,257 1,740,771
Indomita Wine 76,726,600 -5,893,708 893,680 13,656,192 100,634,284 4,315,754 -1,029,729 9,000,393
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9.2 Transactions where share of owners’ equity in a subsidiary changes and the
subsidiary is still controlled
9.2.1 Explanation of changes in share of owners’ equity in a subsidiary
This Company has acquired 49% of the minority shareholders’ equity in the subsidiary
Icewine Valley in this period, with a transfer price of 32,746,777 Yuan. After the completion
of acquisition, this Company holds a 100% equity in Icewine Valley.
9.2.2 Impact of transactions on minority shareholders’ equity and owners’ equity
attributable to the parent company
Items Icewine Valley
Acquirement cost/disposal consideration
--Cash 32,746,777
--Fair value of non-cash assets
Total acquirement cost/disposal consideration 32,746,777
Minus: Net asset share of subsidiaries calculated based on
31,655,269
the proportion of equity acquirement/disposal
Difference
Including: Adjustment of capital reserves 1,091,508
Adjustment of surplus reserves
Adjustment of undistributed profits
9.3 Equity in joint ventures or associates
Summary financial information of unimportant joint ventures and associates
Unit: Yuan
Ending balance/ amount incurred in this Beginning balance / amount incurred
period in prior period
Joint ventures -- --
Total book value of investment 36,846,195 37,970,535
Total of the following items calculated
according to the shareholding ratio
-- Net profit -1,124,340 -798,152
-- Other comprehensive income
-- Total comprehensive income -1,124,340 -798,152
Associates:
Total book value of investment 1,219,317 3,400,850
Total of the following items calculated
according to the shareholding ratio
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Ending balance/ amount incurred in this Beginning balance / amount incurred
period in prior period
-- Net profit 191,752 -123,165
-- Other comprehensive income
-- Total comprehensive income 191,752 -123,165
10. Risks related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in
the normal course of the Group’s operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
The following mainly presents information about the Group’s exposure to each of the above
risks and their sources, their changes during the year, and the Group’s objectives, policies and
processes for measuring and managing risks, and their changes during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Group’s financial performance. Based on such objectives, the Group’s risk
management policies are established to identify and analyse the risks faced by the Group, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities.
10.1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group’s credit risk is primarily
attributable to cash at bank, receivables, debt investments and derivative financial instruments
entered into for hedging purposes. Exposure to these credit risks are monitored by
management on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions.
Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.
As at June 30, 2023, the Group’s maximum exposure to credit risk which will cause a
financial loss to the Group due to failure to discharge an obligation by the counterparties.
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In order to minimise the credit risk, the Group has adopted a policy to ensure that all sales
customers have good credit records. According to the policy of the Group, credit review is
required for clients who require credit transactions. In addition, the Group continuously
monitors the balance of account receivable to ensure there’s no exposure to significant bad
debt risks. For transactions that are not denominated in the functional currency of the relevant
operating unit, the Group does not offer credit terms without the specific approval of the
Department of Credit Control in the Group. In addition, the Group reviews the recoverable
amount of each individual trade debt at each balance sheet date to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard, the management of the
Group considers that the Group's credit risk is significantly reduced.
Since the Group trades only with recognised and creditworthy third parties, there is no
requirement for collateral. Concentrations of credit risk are managed by
customer/counterparty, by geographical region and by industry sector. As at June 30, 2023,
26.5% of the Group trade receivables are due from top five customers (December 31, 2022:
48.8%). There is no collateral or other credit enhancement on the balance of the trade
receivables of the Group.
10.2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering cash or another financial asset. The Group and its individual
subsidiaries are responsible for their own cash management, including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands (subject to approval
by the Group’s board when the borrowings exceed certain predetermined levels). The Group’s
policy is to regularly monitor its liquidity requirements and its compliance with lending
covenants, to ensure that it maintains sufficient reserves of cash, readily realisable marketable
securities and adequate committed lines of funding from major financial institutions to meet
its liquidity requirements in the short and longer term.
10.3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk, respectively. The Group determines the
appropriate weightings of the fixed and floating rate interest-bearing instruments based on the
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure.
(1) As at June 30, 2023, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: Yuan
June 30, 2023 December 31, 2022
Item
Effective interest rate Amounts Effective interest rate Amounts
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Financial assets
- Monetary capital 1.7%-2.15% 228,200,000 2% - 2.25% 53,200,000
Financial liabilities
- Short-term loans 0.65% - 6.76% -230,357,784 0.65% - 6.76% -155,774,939
- Long-term loans (including the
1.50%-3.65% -8,249,803 1.50% - 3.65% -183,331,680
portion due within one year)
- Long-term payable (including the
1.20% -42,000,000 1.20% -64,000,000
portion due within one year)
- Lease liabilities (including the
4.65% -117,902,746 4.65% -128,514,033
portion due within one year)
Total -170,310,333 -478,420,652
Variable rate instruments:
Unit: Yuan
June 30, 2023 December 31, 2022
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 0.3%-1.8225% 1,433,369,550 0.25% - 1.61% 1,598,206,161
Financial liabilities
- Short-term loans 1-year LPR-05 -100,000,000 1-year LPR-05 -200,000,000
- Short-term loans 1.81% - 2.54% -16,000,832 1.81% - 2.54% -33,603,542
- Long-term loans (including those
2.85%-3.35% -126,602,735 2.85%-3.35% -3,011,228
due within one year)
- Long-term loans (including those
BBSY+1.10% -45,439,697 BBSY+1.10% -44,781,100
due within one year)
Total 1,145,326,286 1,316,810,291
(2) Sensitivity analysis
Management of the Group believes interest rate risk on bank deposit is not significant,
therefore does not disclose sensitivity analysis for interest rate risk.
As at June 30, 2023, based on assumptions above, it is estimated that a general increase of 50
basis points in interest rates, with all other variables held constant, would decrease the
Group’s equity by RMB 540,081 Yuan (2022: RMB 1,055,235 Yuan), and net profit by RMB
540,081 Yuan (2022: RMB 1,055,235 Yuan).
The sensitivity analysis above indicates the instantaneous change in the net profit and equity
that would arise assuming that the change in interest rates had occurred at the balance sheet
date and had been applied to re-measure those financial instruments held by the Group which
expose the Group to fair value interest rate risk at the balance sheet date. In respect of the
exposure to cash flow interest rate risk arising from floating rate non-derivative instruments
held by the Group at the balance sheet date, the impact on the net profit and equity is
estimated as an annualised impact on interest expense or income of such a change in interest
rates.
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10.4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loans denominated
in foreign currencies other than the functional currency, the Group ensures that its net exposure is kept
to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address
short-term imbalances.
(1) As at June 30, 2023, the Group’s exposure to currency risk arising from recognised assets or
liabilities denominated in foreign currencies is presented in the following tables. For presentation
purposes, the amounts of the exposure are shown in Renminbi, translated using the spot rate at the
balance sheet date. Differences resulting from the translation of the financial statements
denominated in foreign currency are excluded.
Unit: Yuan
June 30, 2023 December 31, 2022
Item Balance at foreign Balance at RMB Balance at foreign Balance at RMB
currency equivalent currency equivalent
Monetary capital 3,246,928 76,748
- USD 449,279 3,246,400 10,922 76,068
- EUR 67 528 67 494
- HKD 208 186
Short-term borrowings 98,451,525 95,792,132
- USD 13,625,000 98,451,525 13,750,000 95,792,132
(2) Sensitivity analysis
Assuming all other risk variables remained constant, a 5% strengthening of the Renminbi
against the US dollar and Euro at June 30, 2023 would have impact on the Group’s equity and
net profit by the amount shown below, whose effect is in Renminbi and translated using the
spot rate at the year-end date:
Unit: Yuan
Item Equity Net profit
June 30, 2023
USD 4,760,256 4,760,256
EUR -26 -26
Total 4,760,230 4,760,230
December 31, 2022
USD 3,589,352 3,589,352
EUR -19 -19
HKD -7 -7
Total 3,589,326 3,589,326
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30, 2023
would have had the equal but opposite effect to the amounts shown above, on the basis that all
other variables remained constant.
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11. Fair value disclosure
All financial assets and financial liabilities held by the Group are carried at amounts not
materially different from their fair value at June 30, 2023.
12. Related parties and related transactions
12.1 Particulars of the parent company of the Company
Proportion of Proportion of
Name of parent shareholding of the voting powers of
Registration place Business nature Registered capital
company parent company in the parent company
the Company in the Company
Manufacturing
Changyu Group Yantai City 50,000,000 50.40% 50.40%
industry
From January to June 2023, there was no fluctuation in the registered capital of the parent
company and its share in equity interest and voting right.
12.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 8.
12.3 Information about joint ventures and associates of the Company
Other joint ventures and associates that have related party transactions with the Group during
this period or that formed balance when having related party transactions with the Group
during the prior period are as follows:
Name of entity Relationship with the Company
L&M Holdings Joint venture of the Group
Chengdu Yufeng Associates of the Group
Guolong Wine Industry Associates of the Group
12.4 Particulars of other related parties
Name of other related parties Relationship between other related parties and the Company
Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) A company controlled by the same parent company
Yantai Zhongya Medical Health Wine Co., Ltd. (“Zhongya Enterprise significantly influenced by key management
Medical”) personnel of this Company
Mirefleurs Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”） Subsidiaries of the joint venture
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12.5 Related transactions
12.5.1 Related transactions of purchasing and selling goods and providing and receiving
services
List of purchasing goods/receiving services
Unit: Yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
God Horse Packing Purchasing goods 40,209,713 40,568,193
Zhongya Medical Purchasing goods 13,162 17,879
List of selling goods/providing services
Unit: Yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
Zhongya Medical Selling goods 1,929,485 3,027,005
God Horse Packing Selling goods 7,414 31,576
Chengdu Yufeng Selling goods 190,498 850,304
Weimeisi Shanghai Selling goods 305,328
Guolong Wine Industry Selling goods 3,687,055
The price of transactions between the Group and the related parties are based on the
negotiated price.
12.5.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
12.5.3 Leasing with related parties
The Group as a lessor:
Unit: Yuan
Rental income recognized in Rental income recognized in
Name of the lessee Type of leased assets
this period prior period
God Horse Packing Office building and plant 774,705 774,705
Zhongya Medical Office building 295,238 295,238
The Group as a lessee:
Unit: Yuan
Rental expenses for Variable lease
short-term leases and payments not Interest expenses on
Name of Type of Right-of-use assets
leases of low-value included in the Rent paid lease liabilities
the lessor leased assets increased
assets of simplified measurement of assumed
treatment (if lease liabilities (if
144
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
applicable) applicable)
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
incurred incurred incurred incurred incurred incurred incurred incurred incurred incurred
in this in prior in this in prior in this in prior in this in prior in this in prior
period period period period period period period period period period
Office
building,
Changyu
plant, 7,480,362 5,980,362 1,103,983 935,678
Group
commercial
building
12.5.4 Related guarantee
Nil
12.5.5 Inter-bank borrowing and lending of related parties
Nil
12.5.6 Asset transfer and debt recombination of related parties
Nil
12.5.7 Other related transactions
Unit: Yuan
Related party Item Amount incurred in this period Amount incurred in prior period
Changyu Group Trademark use fee 11,320,305 10,512,100
The price of transactions between the Group and the related parties are based on the
negotiated price.
12.6 Accounts receivable and payable of the related parties
12.6.1 Accounts receivable
Unit: Yuan
Ending balance Beginning balance
Item Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts receivable Zhongya Medical 2,247,331 4,045 2,627,473 8,091
Accounts receivable Yantai Guolong 200,000 616
Other current assets Changyu Group 108,931,118 120,930,641
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
12.6.2 Accounts payable
Unit: Yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 16,008,923 36,600,233
Accounts payable Zhongya Medical 813,204 5,365,862
Accounts payable Changyu Group 19,434,600 19,434,600
Accounts payable Chengdu Yufeng 143,659
Liabilities of contracts Chengdu Yufeng 19
Liabilities of contracts Zhongya Medical 240
Other payable God Horse Packing 471,869
13. Share-based payment
13.1 Overall situation of share-based payment
Unit: Yuan
Total amount of various equity instruments granted by
6,785,600
the Company in this period
Total amount of various equity instruments exercised
by the Company in this period
Total amount of various equity instruments
invalidated by the Company in this period
Range of exercise prices for equity issued by the
Company at the end of the period and the remaining
term of contract
6,785,600 shares of restricted stock were issued, with a grant date
of June 26, 2022, and the exercise price of the restricted stock was
Range of exercise prices for other equity instruments
15.24 Yuan per share. As of the end of this period, there were
issued by the Company at the end of the period and
2,035,700 shares with a remaining maturity of 12 months,
the remaining term of contract
2,035,700 shares with a remaining maturity of 24 months, and
2,714,200 shares with a remaining maturity of 36 months.
13.2 Equity-settled share-based payments
Unit: Yuan
Method for determining the fair value of equity instruments
Restricted stock: stock price on grant date minus grant price
on grant date
Basis for determining the number of exercisable equity
Management’s best estimate
instruments
Reasons for significant differences between the current
estimate and the previous estimate
Accumulated amount of equity-settled share-based payments
671,300
included in capital reserve
Total amount of expenses recognized as equity-settled
671,300
share-based payments in this period
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
14. Commitment and contingency
14.1 Significant commitment
Unit: Yuan
Item Ending balance Beginning balance
Making long-term asset commitments 30,598,000 45,698,000
14.2 Contingency
As of the balance sheet date, the Group didn’t have any contingency to be disclosed.
15. Matters after balance sheet
15.1 Important non-adjusting events
According to the authorization of 2022 annual shareholders’ meeting, the Company held its
first interim meeting of directors and first interim meeting of supervisors on June 26, 2023,
and reviewed and approved the Proposal on Matters Related to Adjustment of 2023 Restricted
Stock Incentive Plan and the Proposal on Granting Restricted Stock to the Incentive Objects
of 2023 Restricted Stock Incentive Plan, granting 6,785,600 shares of restricted common
stock to 203 incentive objects. As of July 20, 2023, the total amount of funds raised by the
incentive objects was RMB 103,411,919 Yuan, and the Company’s targeted issuance of
A-share common stocks to the incentive objects has been listed.
16. Other important matters
Nil
17. Notes on major items in financial statements of the parent company
17.1 Accounts receivable
17.1.1 Accounts receivables classified disclosure
Unit: Yuan
Nature Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Book Book
Proportion Proportion
Amount Proportion Amount value Amount Proportion Amount value
of accrual of accrual
Accounts receivable
with bad-debt provision
accrued on a single item
basis
Accounts receivable
2,033,697 100% 3,661 0.18% 2,030,036 2,301,505 100% 0% 2,301,505
with bad-debt provision
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Nature Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Book Book
Proportion Proportion
Amount Proportion Amount value Amount Proportion Amount value
of accrual of accrual
accrued on a combined
basis
Total 2,033,697 100% 3,661 0.18% 2,030,036 2,301,505 100% 0% 2,301,505
Disclosed by age
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 2,033,697
1-2 years
2-3 years
More than 3 years
Total 2,033,697
17.1.2 Provision for bad debts accrued, withdrawn or transferred back in this period
Particulars of provision for bad debts accrued in this period:
Unit: Yuan
Change amount in this period
Beginning
Category withdrawn or Cancelled after Ending balance
balance Accrued
transferred back verification
Bad-debt provision
accrued on a combined 3,661 3,661
basis
Total 3,661 3,661
17.1.3 Accounts receivable actually cancelled after verification in this period
Nil
17.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the ending
balance
Unit: Yuan
Ending balance of accounts Proportion in the total ending Ending balance of bad-debts
Unit
receivable balance of accounts receivable provision
Zhongya Medical 2,033,697 100% 3,661
Total 2,033,697 100%
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
17.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
17.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
17.2 Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Interest receivable
Diveidens receivable 103,544,695 250,000,000
Other receivables 401,380,464 470,176,320
Total 504,925,159 720,176,320
17.2.1 Diveidens receivable
Unit: Yuan
Item (or the invested unit) Ending balance Beginning balance
Dividends receivable from subsidiaries 103,544,695 250,000,000
Total 103,544,695 250,000,000
17.2.2 Other receivables
17.2.2.1 Particulars of other receivables classified by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Accounts receivable from subsidiaries 399,716,851 470,128,362
Others 1,663,613 47,958
Total 401,380,464 470,176,320
17.2.2.2 Disclosed by age
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 401,275,991
1-2 years
2-3 years 104,473
More than 3 years
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Total 401,380,464
17.2.2.3 Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan; and the provision for
bad debts withdrawn or transferred back in this period was RMB 0 Yuan
17.2.2.4 Other accounts receivable actually cancelled after verification in this period
Nil
17.2.2.5 Other accounts receivable collected by the borrower of top 5 units ranked by
the ending balance
Unit: Yuan
Percentage in the total Ending balance
Unit Nature of fund Ending balance Age ending balance of other of provision for
accounts receivable bad debts
Accounts receivable
Sales company 290,435,378 Within 1 year 72.40%
from subsidiaries
Accounts receivable
Atrio Group 80,588,948 Within 1 year 20.10%
from subsidiaries
Accounts receivable
Digital marketing 15,811,981 Within 1 year 3.90%
from subsidiaries
Accounts receivable
Kilikanoon Estate 7,455,390 Within 1 year 1.90%
from subsidiaries
Accounts receivable
Castel 790,482 Within 1 year 0.20%
from subsidiaries
Total 395,082,179 98.50%
17.2.2.6 Accounts receivable related to governmental subsidy
Nil
17.2.2.7 Other accounts receivable derecognized due to transfer of financial assets
Nil
17.2.2.8 Other accounts receivable transferred and included in assets and liabilities
Nil
17.3 Long-term equity investment
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment in subsidiaries 7,684,192,789 7,684,192,789 7,703,535,027 7,703,535,027
Investment in associated enterprises
2,318,351 2,318,351
and joint ventures
Total 7,684,192,789 7,684,192,789 7,705,853,378 7,705,853,378
17.3.1 Investment in subsidiaries
Unit: Yuan
Increase and decrease in this period Ending
Beginning Ending
balance of
Invested unit balance (book Increase in Decrease in Provision for balance (book
Others provision for
value) investment investment impairment accrued value)
impairment
Xinjiang Tianzhu 60,000,000 60,000,000
Kylin Packaging 23,176,063 23,176,063
Changyu Chateau 28,968,100 28,968,100
Pioneer International 3,500,000 3,500,000
Ningxia Growing 36,573,247 36,573,247
National Wine 2,000,000 2,000,000
Icewine Valley 30,440,500 32,746,777 63,187,277
AFIP 588,389,444 588,389,444
Sales Company 7,200,000 7,200,000
Langfang Sales 100,000 100,000
Langfang Castel 19,835,730 19,835,730
Wine Sales 4,500,000 4,500,000
Shanghai Marketing 1,000,000 1,000,000
Beijing Marketing 850,000 850,000
Jingyang Sales 100,000 100,000
Jingyang Wine 900,000 900,000
Ningxia Wine 222,309,388 222,309,388
Ningxia Chateau 453,463,500 453,463,500
Chateau Tinlot 212,039,586 212,039,586
Shihezi Chateau 812,019,770 812,019,770
Chang’an Chateau 803,892,258 803,892,258
R&D Company 3,288,906,445 3,288,906,445
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Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Increase and decrease in this period Ending
Beginning Ending
balance of
Invested unit balance (book Increase in Decrease in Provision for balance (book
Others provision for
value) investment investment impairment accrued value)
impairment
Huanren Wine 22,200,000 22,200,000
Wine Sales Company 5,000,000 5,000,000
Francs Champs 236,025,404 236,025,404
Marques del Atrio 233,142,269 233,142,269
Indomita Wine 274,248,114 274,248,114
Kilikanoon Estate,
129,275,639 129,275,639
Australia
Digital Marketing 1,000,000 1,000,000
Changyu Cultural
92,479,570 92,479,570
Tourism Company
Chateau Koya 110,000,000 110,000,000
Weimeisi (Shanghai) 7,910,985 7,910,985
Total 7,703,535,027 40,657,762 60,000,000 7,684,192,789
17.3.2 Investment in associates
Unit: Yuan
Increase and decrease in this period
Investment Ending
Beginning gains and Ending
Other Other Declared Provision balance of
balance losses balance
Invested unit Increase in Decrease in comprehensive changes cash for provision
(book recognized Others (book
investment investment
under the
income in dividend impairment for
value) adjustment equity or profit accrued value)
equity impairment
method
Weimeisi
2,318,351 2,373,285 54,934
Shanghai
Total 2,318,351 2,373,285 54,934
17.4 Operating income and operating cost
17.4.1 Details of operating income
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Income
Main business 211,221,867 173,868,643 200,506,811 166,176,180
Other business 30,745,229 27,044,675 29,080,332 26,938,064
Total 241,967,096 200,913,318 229,587,143 193,114,244
Including: Income from contracts 240,897,153 200,209,954 228,517,200 192,410,880
152
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Income from house rents 1,069,943 703,364 1,069,943 703,364
17.4.2 Situation of income from contracts
Unit: Yuan
Contract classification Amount incurred in this period Amount incurred in prior period
Type of merchandise
- Alcoholic beverage 211,221,867 200,506,811
- Others 29,675,286 28,010,389
Classified by the time of merchandise
transfer
- Revenue recognized at a point in time 240,897,153 228,517,200
17.5 Investment income
Unit: Yuan
Amount incurred in Amount incurred in
Item
this period prior period
Income from long-term equity investment by cost method 178,935,084 328,316,580
Income from long-term equity investment by equity method 54,934 -26,539
Investment income from disposal of long-term equity investment -29,910,000
Investment income of the financial assets measured at their fair values and the
variation of which is recorded into the current profits and losses during the
holding period
Investment income gained from disposal of the financial assets measured at
their fair values and the variation of which is recorded into the current profits
and losses
Investment income of held-to-maturity investment during the holding period
Investment income of financial assets held for sale during the holding period
Investment income gained from disposal of financial assets held for sale
Gains generated from the remaining equity remeasured as per fair value after
the loss of control
Total 149,080,018 328,290,041
18. Supplementary materials
18.1 List of non-current profits/losses in this period
Unit: Yuan
Item Amount Remark
Profits/losses on disposal of non-current assets 16,228,006
153
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
Item Amount Remark
Tax return, deduction and exemption approved beyond the authority or
without formal approval document
Governmental subsidy included in the current profits/losses (excluding those
closely related to the enterprise business and enjoyed in accordance with the 28,971,185.00
unified standard quota or ration of the state)
Payment for use of funds by non-financial enterprises included in the current
profits/losses
Income obtained when the investment cost obtained by the enterprise from
subsidiaries, joint-run business and joint venture is less than the fair value of
the net identifiable assets obtained from the invested units when the
investment is made
Profits/losses on exchange of non-monetary assets
Profits/losses on entrusting other people to make investment or manage assets
Asset impairment provision accrued due to force majeure such as natural
disaster
Profits/losses on debt restructuring
Enterprise reorganization expenses such as staffing expenditure and
integration expenses, etc.
Profits/losses on those beyond the fair value generated from transactions with
unfair transaction price
Current net profits/losses on subsidiaries acquired from a business
combination under common control from the beginning to the consolidation
date
Profits/losses on contingencies irrelated to the normal business of the
Company
Profits/losses on changes of fair value of tradable financial assets, derivative
financial assets, tradable financial liabilities and derivative financial
liabilities, and investment income from disposal of tradable financial assets,
derivative financial assets, tradable financial liabilities, derivative financial
liabilities and other investment in creditor's rights, excluding effective
hedging operations relevant to the normal business of the Company
Transfer-back of accounts receivable with single impairment test and
provision for impairment of contract assets
Profits/losses on external entrusted loans
Profits/losses on fair value changes of investment real estate with fair value
mode for follow-up measurement
Influence of the one-time adjustment of the current profits/losses in
accordance with tax and accounting laws and regulations on the current
profits/losses
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items -332,706
Other profits/losses conforming to the definition of non-current profits/losses
Minus: Influenced amount of income tax 4,785,509
Influenced amount of minority shareholders’ equity 833,515
Total 39,247,461 --
154
Yantai Changyu Pioneer Wine Co., Ltd. 2023 Semi-annual Report
18.2 Return on net assets and earnings per share
Earnings per share
Weighted average return on
Profit incurred in this period Basic EPS Diluted EPS
net assets
(Yuan/Share) (Yuan/Share)
Net profit attributable to common
3.40% 0.53 0.53
shareholders of the Company
Net profit attributable to common
shareholders of the Company deducting 3.03% 0.47 0.47
non-incidental profits/losses
18.3 Accounting data difference under domestic and foreign accounting standard
18.3.1 Net profits & net assets difference disclosed in the financial report according to
the international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits Net assets
Amount incurred in Amount incurred in prior
Ending balance Beginning balance
this period period
In accordance with the
363,569,436 358,459,603 10,645,880,226 10,579,053,733
Chinese accounting standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 363,569,436 358,459,603 10,645,880,226 10,579,053,733
standard
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
August 31, 2023
155
