Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Yantai Changyu Pioneer Wine Co., Ltd.
2024 Semi-annual Financial Report
Final 2024-03
August 22, 2024
1
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2024 Unit:
yuan
Item Note June 30, 2024 December 31, 2023
Current assets:
Monetary fund 7.1 1,659,684,740 2,217,693,647
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable 7.2 440,667 1,260,000
Accounts receivable 7.3 172,184,919 382,132,334
Receivables financing 7.4 212,135,108 408,316,028
Advance payment 7.5 45,718,117 61,497,933
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.6 76,437,050 71,496,276
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 7.7 2,886,202,651 2,765,390,587
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.8 72,912,415 88,368,542
Total current assets 5,125,715,667 5,996,155,347
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.9 36,353,528 38,285,620
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.10 23,237,000 24,482,831
Fixed assets 7.11 5,687,285,125 5,795,082,569
Construction in progress 7.12 10,097,466 3,323,241
Productive biological assets 7.13 170,252,547 177,461,983
Oil-and-gas assets
Right-of-use assets 7.14 112,742,536 121,745,910
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note June 30, 2024 December 31, 2023
Intangible assets 7.15 535,248,176 542,625,776
Including: Data resource
Development expenditure
Including: Data resource
Goodwill 7.16 107,163,616 107,163,616
Long-term prepaid expenses 7.17 308,457,240 306,662,107
Deferred income tax assets 7.18 181,336,582 221,518,204
Other non-current assets 7.19 1,760,000
Total non-current assets 7,172,173,816 7,340,111,857
Total assets 12,297,889,483 13,336,267,204
Current liabilities:
Short-term loans 7.21 202,057,523 364,981,445
Borrowings from the Central Bank
Borrowing funds
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.22 397,974,969 473,352,525
Advances from customers
Contract liabilities 7.23 138,471,595 175,278,849
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.24 87,669,532 185,331,292
Taxes and dues payable 7.25 145,797,124 274,723,431
Other payables 7.26 353,518,418 555,634,336
Including: Interest payable
Dividends payable 383,085
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.27 81,231,755 78,523,993
Other current liabilities 7.28 18,001,307 44,958,297
Total current liabilities 1,424,722,223 2,152,784,168
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.29 36,651,931 66,616,443
Bonds payable
Including: Preferred stock
Perpetual bonds
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note June 30, 2024 December 31, 2023
Lease liabilities 7.30 68,134,685 85,038,335
Long-term accounts payable
Long-term employee remunerations payable
Estimated liabilities
Deferred income 7.31 29,292,739 32,582,734
Deferred income tax liabilities 7.18 8,329,523 8,719,729
Other non-current liabilities
Total non-current liabilities 142,408,878 192,957,241
Total liabilities 1,567,131,101 2,345,741,409
Owner’s equities:
Capital stock 7.32 692,249,559 692,249,559
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 7.33 675,434,203 651,086,707
Minus: Treasury stock 7.34 250,924,123 103,411,919
Other comprehensive income 7.35 -24,854,346 -14,784,677
Special reserves
Surplus reserves 7.36 342,732,000 342,732,000
General risk preparation
Undistributed profit 7.37 9,148,896,456 9,273,629,318
Total owner’s equities attributable to the parent company 10,583,533,749 10,841,500,988
Minority equity 147,224,633 149,024,807
Total owner’s equities 10,730,758,382 10,990,525,795
Total liabilities and owner’s equities 12,297,889,483 13,336,267,204
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit:
yuan
Item Note June 30, 2024 December 31, 2023
Current assets:
Monetary fund 664,611,150 1,242,484,544
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 18.1 1,260,252 5,189,894
Receivables financing 30,006,125 36,322,019
Advance payment 52,587
Other receivables 18.2 507,125,567 576,949,997
Including: Interest receivable
Dividends receivable 3,447,765
Inventories 397,600,313 323,465,919
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 22,212,993 147,187
Total current assets 1,622,816,400 2,184,612,147
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 18.3 7,671,408,253 7,648,498,638
Other investments in equity instruments
Other non-current financial assets
Investment real estate 23,237,000 24,482,831
Fixed assets 184,548,217 194,601,612
Construction in progress 264,175 264,175
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note June 30, 2024 December 31, 2023
Productive biological assets 97,461,785 100,785,279
Oil-and-gas assets
Right-of-use assets 34,960,098 37,025,896
Intangible assets 71,179,279 72,552,201
Including: Data resource
Development expenditure
Including: Data resource
Goodwill
Long-term prepaid expenses
Deferred income tax assets 1,456,176 2,327,585
Other non-current assets 1,977,430,000 1,934,430,000
Total non-current assets 10,061,944,983 10,014,968,217
Total assets 11,684,761,383 12,199,580,364
Current liabilities:
Short-term loans 100,000,000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 48,661,601 63,686,113
Advances from customers
Contract liabilities
Employee remunerations payable 58,772,991 68,654,350
Taxes and dues payable 6,062,369 6,439,899
Other payables 534,216,588 608,904,995
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 5,167,038 3,803,910
Other current liabilities
Total current liabilities 652,880,587 851,489,267
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note June 30, 2024 December 31, 2023
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 37,162,717 42,380,074
Long-term accounts payable
Long-term employee remuneration payable
Estimated liabilities
Deferred income 38,372 55,718
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 37,201,089 42,435,792
Total liabilities 690,081,676 893,925,059
Owner’s equities:
Capital stock 692,249,559 692,249,559
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 712,672,729 687,544,350
Minus: Treasury stock 250,924,123 103,411,919
Other comprehensive income
Special reserves
Surplus reserves 342,732,000 342,732,000
Undistributed profit 9,497,949,542 9,686,541,315
Total owner’s equities 10,994,679,707 11,305,655,305
Total liabilities and owner’s equities 11,684,761,383 12,199,580,364
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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 1,522,309,436 1,966,738,485
Including: Operating income 7.38 1,522,309,436 1,966,738,485
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1,243,403,652 1,528,483,622
Including: Operating costs 7.38 595,748,730 805,459,392
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
Reinsurance expenditures
Taxes and surcharges 7.39 112,820,607 131,447,066
Selling expenses 7.40 391,916,515 453,001,710
Administrative expenses 7.41 132,945,615 128,695,395
Research and development expenses 7.42 6,748,675 6,653,626
Financial expenses 7.43 3,223,510 3,226,433
Including: Interest expenses 9,918,886 12,325,532
Interest income 12,390,815 9,060,578
Plus: Other profit 7.44 33,630,640 28,971,185
Investment profit (loss is listed with “-”) 7.45 -1,932,092 15,614,536
Including: Investment profit for joint-run business
and joint venture -1,932,092 -932,588
Financial assets measured at amortized
cost cease to be recognized as income
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 “-”) 7.46 4,083,362 -993,494
Asset impairment loss (loss is listed with “-”) 7.47 -1,024,683 -244,434
Income from asset disposal (loss is listed with “-”) 7.48 4,647 -298,401
3. Operating profit (loss is listed with “-”) 313,667,658 481,304,255
Plus: Non-operating income 7.49 1,677,625 1,772,522
Minus: Non-operating expenses 7.50 611,583 2,125,945
4. Total profits (total loss is listed with “-”) 314,733,700 480,950,832
Minus: Income tax expenses 7.51 92,758,345 130,350,513
5. Net profit (net loss is listed with “-”) 221,975,355 350,600,319
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note Sum of this period Sum of prior period
5.1 Classification by operation continuity
5.1.1 Net profit from continuing operation (net loss is listed
221,975,355 350,600,319
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
221,177,382 363,569,436
company
5.2.2 Minority interest income 797,973 -12,969,117
6. Net after-tax amount of other comprehensive income 7.52 -11,182,076 13,707,142
Net after-tax amount of other comprehensive income
-10,069,669 12,136,065
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
6.1.5 Other
6.2 Other comprehensive income to be reclassified into
profit and loss later -10,069,669 12,136,065
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 Currency
-10,069,669 12,136,065
Financial Statement
6.2.7 Other
Net after-tax amount of other comprehensive income
attributable to minority shareholders -1,112,407 1,571,077
7. Total comprehensive income 210,793,279 364,307,461
Attributable to owner of the parent company 211,107,713 375,705,501
Attributable to minority shareholders -314,434 -11,398,040
8. Earnings per share:
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note Sum of this period Sum of prior period
8.1 Basic earnings per share 0.32 0.53
8.2 Diluted earnings per share 0.32 0.53
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 18.4 185,899,536 241,967,096
Minus: Operating costs 18.4 166,106,938 200,913,318
Taxes and surcharges 4,511,741 9,139,640
Selling expenses
Administrative expenses 31,118,671 19,481,354
Research and development expenses 399,923 533,807
Financial expenses -8,236,589 -753,987
Including: Interest expenses 2,318,915 2,862,882
Interest income 4,102,498 4,368,355
Plus: Other profit 608,617 774,925
Investment profit (loss is listed with “-”) 18.5 164,552,732 149,080,018
Including: Investment profit for joint-run business
54,934
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 “-”) -1,262 -3,661
Asset impairment loss (loss is listed with “-”)
Income from asset disposal (loss is listed with “-”) -639,633
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note Sum of this period Sum of prior period
2. Operating profit (loss is listed with “-”) 157,158,939 161,864,613
Plus: Non-operating income 415,749 167,110
Minus: Non-operating expenses 505,099 914,209
3. Total profits (total loss is listed with “-”) 157,069,589 161,117,514
Minus: Income tax expenses -248,882 -405,243
4. Net profit (net loss is listed with “-”) 157,318,471 161,522,757
4.1 Net profit from continuing operation (net loss is listed with
“-”) 157,318,471 161,522,757
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 re-measuring and resetting the benefit
plans
5.1.2 Other comprehensive income not to be reclassified
into profit and loss under 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 157,318,471 161,522,757
7. Earnings per share:
7.1 Basic earnings per share 0.23 0.23
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note Sum of this period Sum of prior period
7.2 Diluted earnings per share 0.23 0.23
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 services 1,866,371,505 2,065,105,263
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Cash received from receiving insurance premium of original
insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment funds
Cash received from collecting interest, handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchased business funds
Net cash received for buying and selling securities
Tax refund received 16,377,257 29,311,454
Other cash received related to operating activities 7.53 48,893,252 47,251,102
Subtotal of cash flows of operating activities 1,931,642,014 2,141,667,819
Cash paid for goods and services 758,417,685 622,088,864
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 264,499,866 241,778,846
Cash paid for taxes and expenses 408,101,346 457,071,706
Other cash paid related to operating activities 7.53 296,742,753 292,808,617
Sub-total of cash outflows of operating activities 1,727,761,650 1,613,748,033
Net cash flow from operating activities 203,880,364 527,919,786
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 413,000,000 6,000,000
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Note Sum of this period Sum of prior period
Cash received from obtaining investment income
Cash received from obtaining interest income 2,589,064 167,919
Cash received from disposal of fixed assets, intangible assets
80,843 1,431,000
and other long-term assets
Net cash received from disposal of branch and other business
7,238,585
unit
Other cash received related to investing activities 657,049
Subtotal of cash flows of investment activities 415,669,907 15,494,553
Cash paid to acquire fixed assets, intangible assets and other
67,893,118 60,515,887
long-term assets
Cash for investment
Cash paid for purchasing fixed deposits 246,000,000 206,000,000
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 313,893,118 266,515,887
Net cash flow from investing activities 101,776,789 -251,021,334
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 307,063,337 295,974,371
Other cash received related to financing activities
Subtotal cash flows of financing activities 307,063,337 309,875,203
Cash paid for paying debts 484,652,320 419,615,315
Cash paid for distributing dividend and profit or paying
359,372,568 319,861,482
interest
Including: Dividend and profit paid to minority shareholders
70,317
by branch
Other cash paid related to financing activities 167,730,790 38,007,700
Subtotal of cash outflows of financing activities 1,011,755,678 777,484,497
Net cash flow from financing activities -704,692,341 -467,609,294
4. Influences of exchange rate fluctuation on cash and cash
-1,131,315 1,038,021
equivalents
5. Net Increase in cash and cash equivalents -400,166,503 -189,672,821
Plus: Balance at the beginning of the period of cash and cash
1,963,155,752 1,612,753,600
equivalents
6. Balance at the end of the period of cash and cash equivalents 1,562,989,249 1,423,080,779
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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
251,492,494 245,770,806
services
Tax refund received
Other cash received related to operating activities 8,000,504 10,820,471
Subtotal of cash flows of operating activities 259,492,998 256,591,277
Cash paid for goods and services 137,448,769 204,180,816
Cash paid to and on behalf of employees 34,244,388 22,218,740
Cash paid for taxes and expenses 23,228,320 43,953,062
Other cash paid related to operating activities 28,704,858 76,577,506
Sub-total of cash outflows of operating activities 223,626,335 346,930,124
Net cash flow from operating activities 35,866,663 -90,338,847
2. Cash flow from investing activities:
Cash received from disinvestment 27,690,000
Cash received from withdrawal of fixed deposits 413,000,000
Cash received from obtaining investment income 161,104,967 325,390,390
Cash received from obtaining interest income 2,589,064 167,919
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
Net cash received from disposal of branch and other
business unit
Other cash received related to investing activities 20,000,000
Subtotal of cash flows of investment activities 596,694,031 353,248,309
Cash paid to acquiring fixed assets, intangible assets
3,193,066 3,845,079
and other long-term assets
Cash for investment 1,883,538 20,161,100
Cash paid for purchasing fixed deposits 246,000,000 206,000,000
Net cash paid for acquiring branch and other
business unit
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Sum of this period Sum of prior period
Other cash paid related to investment activities 198,200,000 44,230,000
Subtotal of cash outflows of investment activities 449,276,604 274,236,179
Net cash flow from investing activities 147,417,427 79,012,130
3. Cash flow from financing activities:
Cash received from acquiring investment 13,900,832
Cash received from acquiring loans 100,000,000
Other cash received related to financing activities
Subtotal cash flows of financing activities 113,900,832
Cash paid for debts 100,000,000 100,000,000
Cash paid to distribute dividend, profit or pay
347,324,780 310,002,967
interest
Other cash paid related to financing activities 155,356,609 4,567,148
Subtotal of cash outflows of financing activities 602,681,389 414,570,115
Net cash flow from financing activities -602,681,389 -300,669,283
4. Influences of exchange rate fluctuation on cash and
cash equivalents
5. Net Increase in cash and cash equivalents -419,397,299 -311,996,000
Plus: Balance at the beginning of the period of cash
988,284,544 843,369,997
and cash equivalents
6. Balance at the end of the period of cash and cash
568,887,245 531,373,997
equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
17
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
2.7 Consolidated owner’s equities changing list
Unit: yuan
This period
Owner’s equities of the parent company
Item Other equity instruments Minus: Minority Total owner’s
Capital Other Surplus
Capital Special General risk Undistributed equity equities
Preferred Perpetual Treasury comprehensive Others Subtotal
stock Others reserves reserves reserves preparation profits
stock bonds stock income
1. Balance at the end of last year 692,249,559 651,086,707 103,411,919 -14,784,677 342,732,000 9,273,629,318 10,841,500,988 149,024,807 10,990,525,795
Plus:Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of
692,249,559 651,086,707 103,411,919 -14,784,677 342,732,000 9,273,629,318 10,841,500,988 149,024,807 10,990,525,795
this year
3. Increased or decreased amount in this
24,347,496 147,512,204 -10,069,669 -124,732,862 -257,967,239 -1,800,174 -259,767,413
period (reducing amount is listed with “ -”)
3.1 Total comprehensive income -10,069,669 221,177,382 211,107,713 -314,434 210,793,279
3.2 Owner’s invested and
24,347,496 147,512,204 -123,164,708 -1,102,655 -124,267,363
reduced capital
3.2.1 Owner’s invested common stock 150,932,125 -150,932,126 -150,932,126
3.2.2 Other equity instrument
holders’ invested capital
3.2.3 A mount of shares paid and
25,146,195 -3,419,921 28,566,117 28,566,117
reckoned in owner’s equities
3.2.4 Others -798,699 -798,699 -1,102,655 -1,901,354
3.3 Profit distribution -345,910,244 -345,910,244 -383,085 -346,293,329
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk
preparation
3.3.3 Distribution to owners (or
-345,910,244 -345,910,244 -383,085 -346,293,329
shareholders)
3.3.4 Others
3.4 Internal transfer of owner’s equities
3.4.1 Capital reserves transferred
and increased capital (or cap ital
stock)
3.4.2 Surp lus reserves transferred
and increased capital (or cap ital
18
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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 Others
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Others
4. Balance at the end of this period 692,249,559 675,434,203 250,924,123 -24,854,346 342,732,000 9,148,896,456 10,583,533,749 147,224,633 10,730,758,382
Unit: yuan
Last period
Owner’s equities of the parent company
Item Other equity instruments Total owner’s
Capital Minus: Other Surplus General Minority equity
Capital Special Undistributed equities
Preferred Perpetual Treasury comprehensive risk Others Subtotal
stock Others reserves reserves reserves profits
stock bonds stock income preparation
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
Other
2. Balance at the beginning of
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
this year
3. Increased or decreased amount in this
6,785,559 126,117,947 103,411,919 8,975,561 223,980,107 262,447,255 -97,501,754 164,945,501
period (reducing amount is listed with “-”)
3.1 Total comprehensive income 8,975,561 532,438,907 541,414,468 -5,862,264 535,552,204
3.2 Owner’s invested and
6,785,559 126,117,947 103,411,919 29,491,587 -90,101,174 -60,609,587
reduced capital
3.2.1 Owner’s invested common stock
3.2.2 Other equity instrument
holders’ invested capital
3.2.3 A mount of shares paid and
6,785,559 127,362,115 103,411,919 30,735,755 30,735,755
reckoned in owner’s equities
3.2.4 Others -1,244,168 -1,244,168 -90,101,174 -91,345,342
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
3.3 Profit distribution -308,458,800 -308,458,800 -1,538,316 -309,997,116
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 -1,538,316 -309,997,116
shareholders)
3.3.4 Others
3.4 Internal transfer of owner’s equities
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 Others
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 692,249,559 651,086,707 103,411,919 -14,784,677 342,732,000 9,273,629,318 10,841,500,988 149,024,807 10,990,525,795
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2.8 Owner’s equities changing list of the parent company
Unit: yuan
This period
Other equity instruments Minus: Other
Item Capital Special Surplus Undistributed Total owner’s
Capital stock Preferred Perpetual Treasury comprehensive Others
Others reserves reserves reserves profits equities
stock bonds stock income
1. Balance at the end of last year 692,249,559 687,544,350 103,411,919 342,732,000 9,686,541,315 11,305,655,305
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 692,249,559 687,544,350 103,411,919 342,732,000 9,686,541,315 11,305,655,305
3. Increased or decreased amount in this period
25,128,379 147,512,204 -188,591,773 -310,975,598
(reducing amount is listed with “-”)
3.1 Total comprehensive income 157,318,471 157,318,471
3.2 Owner’s invested and reduced capital 25,128,379 147,512,204 -122,383,825
3.2.1 Owner’s invested common stock 150,932,125 -150,932,126
3.2.2 Other equity instrument holder’s invested capital
3.2.3 A mount of shares paid and reckoned in
25,146,195 -3,419,921 28,566,117
owner’s equities
3.2.4 Others -17,816 -17,816
3.3 Profit distribution -345,910,244 -345,910,244
3.3.1 Accrued surplus reserves
3.3.2 Distribution to owners (or shareholders) -345,910,244 -345,910,244
3.3.3 Others
3.4 Internal transfer of owner’s equities
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. 2024 Semi-annual Financial Report
3.4.5 Retained earnings carried over fro m other
comprehensive income
3.4.6 Others
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Others
4. Balance at the end of this period 692,249,559 712,672,729 250,924,123 342,732,000 9,497,949,542 10,994,679,707
Unit: yuan
Last period
Other equity instruments Minus: Other
Item Capital Special Surplus Undistributed Total owner’s
Capital stock Preferred Perpetual Treasury comprehensive Others
Others reserves reserves reserves profits equities
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
Others
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
6,785,559 127,362,115 103,411,919 103,681,301 134,417,056
(reducing amount is listed with “-”)
3.1 Total comprehensive income 412,140,101 412,140,101
3.2 Owner’s invested and reduced capital 6,785,559 127,362,115 103,411,919 30,735,755
3.2.1 Owner’s invested common stock
3.2.2 Other equity instrument holder’s invested capital
3.2.3 A mount of shares paid and reckoned in
6,785,559 127,362,115 103,411,919 30,735,755
owner’s equities
3.2.4 Others
3.3 Profit distribution -308,458,800 -308,458,800
3.3.1 Accrued surplus reserves
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
3.3.2 Distribution to owners (or shareholders) -308,458,800 -308,458,800
3.3.3 Others
3.4 Internal transfer of owner’s equities
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 fro m 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 Others
4. Balance at the end of this period 692,249,559 687,544,350 103,411,919 342,732,000 9,686,541,315 11,305,655,305
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial 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, 2024, the Company issued 692,249,559 shares accumulatively. Refer to Note
7.32 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 Group Co., Ltd., ILLVA Saronno Holding Spa, International Finance Corporation
and Yantai Yuhua Investment & Development Co., Ltd.
The financial statement and the consolidated financial statement o f the Company were
approved by the Board of Directors in August 20, 2024.
The details of scope of the consolidated financial statement in this period can be seen in Note
10 “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,
2024, 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, 2024, 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 2024.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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
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 Determination method and selection criteria for significant standards
Item Significant standards
Single of other payables / accounts payable with
Other significant payables / accounts
an aging of over 1 year exceeding 0.5% of the
payable with an aging of over 1 year
Group’s total liabilities
Single of construction in progress with the
Significant construction in progress carrying amount exceeding 0.5% of the Group’s
noncurrent assets
Non-wholly-owned subsidiary with the book value
Significant non-wholly-owned subsidiary of net assets attributable to minority shareholders
exceeding 0.5% of the Group’s net assets
Significant cash flows from investing Single of cash flows with the amount exceeding
activities 0.5% of the Group’s total assets
5.6 Accounting treatment method for business combination under common control and
non-common control
5.6.1 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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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.
5.6.2 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, shall deduct 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. The direct expenses incurred for the business combi nation by the
Group 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 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 re-measures its previously-held equity interest in the acquiree to its
acquisition-date fair value, and recognizes any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. Other comprehensive income and other changes in owner’s equities that can be
reclassified into profit or loss under the equity method of accounting for the equity interest of
the acquiree held before acquisition date shall be transferred to current investment income on
the purchase date; and if equity interests of the acquiree held before acquisition date are
equity instrument investments measured at fair value with changes recognized in other
comprehensive income, other comprehensive income recognized before acquisition date shall
be transferred to retained earnings on acquisition date.
5.7 Determination standard of control and compiling methods of consolidated financial
statement
5.7.1 General principles
The consolidation scope of the consolidated financial statements is determined based on
control, including the Company and its controlled subsidiaries. Control refers to the Group’s
power over the investee, enjoying variable returns through participation in related activities
of the investee, and having the ability to use its power over the investee to influence its return
amount. When determining whether the Group has power over the investee, the Group only
considers substantive rights related to the investee (including substantive rights enjoyed by
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
the Group itself and other parties). The financial condition, operating performance, and cash
flows of the subsidiaries shall be included in the consolidated financial statements from the
date of control to the date of control termination.
The equity, profit and loss, and total comprehensive income attributable to minority
shareholders of the subsidiaries shall be separately presented in the shareholders’ equity
section of the consolidated balance sheet and the net profit and total comprehensive income
section of the consolidated profit statement.
If the current losses shared by minority shareholders of the subsidiaries exceed their share of
the subsidiaries’ initial owner’s equity, the balance shall still be offset against the minority
equity.
When the accounting period or accounting policies of a subsidiary are different from those of
the Company, the Company has made necessary adjustments to the financial statements of
the subsidiary based on the Company’s own accounting period or accounting policies. All
intra-group transactions and balances during the combination, including unrealized
intra-group transactions gains and losses, have been offset. If there is evidence that unrealized
losses incurred in intra-group transactions are related to impairment losses of assets, the full
amount of such losses shall be recognized.
5.7.2 Subsidiaries acquired through a business combination
Where a subsidiary is acquired through a business combination involving entities under
common control, when preparing the consolidated financial statements for current period,
based on the carrying amounts of the assets and liabilities of the combined subsidiary in the
financial statements of the ultimate controlling party, the combined subsidiary shall be
deemed to be included in the consolidation scope of the Company when the ultimate
controlling party of the Company begins to exercise control over it, and the initial balance
and the comparative figures of the consolidated financial statements shall be correspondingly
adjusted.
Where a subsidiary is acquired through a business combination involving entities not under
common control, when preparing the consolidated financial statements for current period,
based on the fair value of identifiable assets and liabilities of the acquired subsi diary
determined on the acquisition date, the acquired subsidiary shall be included in the
consolidation scope of the Company from the acquisition date.
5.7.3 Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses are
recognized 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 recognized 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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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, each transaction shall
be treated as a transaction for disposing of the existing subsidiary and losing control. The
difference between the disposal price and the net carrying value of the subsidiary that is
continuously calculated from the acquisition date corresponding to the disposal investment
before losing control shall be included in other comprehensive income in the consolidated
financial statements, and be transferred when losing control to profit or loss of the period
losing control.
5.7.4 Changes in minority equity
The difference between the cost of long-term equity investment acquired by the Company
through the purchase of minority equity and the net asset share of the subsidiary cal culated
based on the newly increased shareholding ratio, as well as the difference between the
disposal price obtained from partial disposal of equity investment in the subsidiary without
losing control and the net asset share of the subsidiary corresponding to the disposal of
long-term equity investment, shall be adjusted to the capital reserve (share premium) in the
consolidated balance sheet. And if the capital reserve (share premium) is insufficient to
offset, the retained earnings shall be adjusted.
5.8 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be used for payment at
any time, and short-term highly liquid investments which are readily convertible into known
amount of cash with an insignificant risk of changes in value.
5.9 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
28
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognized in current 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 undistributed profit and the translation differences in other
comprehensive income, are translated to Renminbi at the spot exchange rates at the
transaction date. Income and expenses in the income statement are translated to Renminbi at
the spot exchange rates at the transaction date. The resulting translation differences generated
by the above conversion are recognized 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.
5.10 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.
5.10.1 Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognized 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 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.
5.10.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets of this Group
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 amor tized 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.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
A financial asset is measured at amortized 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 amortized 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 amortized 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.
In assessing whether the contractual cash flows are solely payments of principal and interes t,
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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
These financial assets are subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognized in profit or loss unless the financial
assets are part of a hedging relationship.
- Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method.
A gain or loss on a financial asset that is measured at amortized cost and is not part of a
hedging relationship shall be recognized in profit or loss when the financial asset is
derecognized and reclassified, through the amortization process or in order to recognize
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 recognized
in profit or loss. Other net gains and losses are recognized 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 recognized as income in
profit or loss. Other net gains and losses are recognized in other comprehensive income. On
derecognition, gains and losses accumulated in other comprehensive income are reclassified
to retained earnings.
5.10.3 Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortized 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
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 recognized in profit or loss, unless the financial
liabilities are part of a hedging relationship.
- Financial liabilities at amortized cost
These financial liabilities are subsequently measured at amortized cost using the effective
interest method.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
5.10.4 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 recognized amounts；
- The Group intends either to settle on a net basis, or to realize the financial asset and settle
the financial liability simultaneously.
5.10.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognized when one of the following conditions is met:
- the 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 recognized in current 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
recognized directly in other comprehensive income for the part derecognized.
The Group derecognizes a financial liability (or part of it) only when its contractual
obligation (or part of it) is extinguished.
5.10.6 Impairment
The Group recognizes loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortized cost;
- 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
32
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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 eve nts over the expected life
of a financial instrument.
ECLs within the next 12 months refers to the ECLs that may occur due to a financial
instrument default event within 12 months after the balance sheet date (if the expected
duration of the financial instrument is less than 12 months, it is within the expected duration),
and is a part of the ECLs for the entire duration.
For bills receivable, accounts receivable, accounts receivable financing generated from daily
business activities such as selling goods and providing services, 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 bills receivable, accounts receivable, accounts receivable financing 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 recognizes a loss allowance
equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
or
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.
Bad debt provision for accounts receivable
(a) Combination categories and determination criteria for bad debt provision based on credit
risk characteristics
According to the different credit risk characteristics of the acceptor, the Group
Bills receivable divides bills receivable into two combinations: bank acceptance bills and
commercial acceptance bills.
Based on the historical experience of this Group, there is no significant
difference in the occurrence of losses among different segmented customer
Accounts
groups. Therefore, this Group considers all accounts receivable as a combination
receivable
and does not further differentiate between different customer groups when
calculating the bad debt provision for accounts receivable.
The accounts receivable financing of this Group is for accounts receivable bank
Accounts
acceptance bills with dual holding purposes. Due to the fact that the accepting
receivable
banks are all banks with high credit ratings, this Group considers all accounts
financing
receivable financing as a combination.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
The other receivables of this Group mainly include deposits receivable and
security deposits. Based on the nature of accounts receivable and the credit risk
Other
characteristics of different counterparties, the Group divides other accounts
receivables
receivable into two combinations, namely: combination of deposits receivable
and security deposits, and combination of other accounts receivable.
(b) Determination criteria for single provision of bad debt reserves based on individual
provision
For bills receivable, accounts receivable, accounts receivable financing, and other accounts
receivable, the Group usually measures its loss provision based on a combination of credit
risk characteristics. If the credit risk characteristics of a counterparty are significantly
different from those of other counterparties in the portfolio, or if there is a significant change
in the credit risk characteristics of that counterparty, a separate provision for loss shall be
made for accounts receivable from that counterparty. For example, when a counterparty
experiences serious financial difficulties and the ECL rate of accounts receivable from that
counterparty is significantly higher than the ECL rate of its aging range, a separate provision
for loss shall be made for it.
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
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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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 amortized
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 reorganization; or
- the disappearance of an active market for that financial asset because of financial
difficulties.
Presentation of allowance for ECL
ECLs are re-measured 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 recognized
as an impairment gain or loss in profit or loss. The Group recognizes an impairment gain or
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 recognized 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 recognized as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
5.10.7 Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
recognized 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.
5.11 Inventories
5.11.1 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 labor 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.
5.11.2 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 amortized when
they are used. The amortization charge is included in the cost of the related assets or
recognized in profit or loss for the current period.
5.11.3 Basis for determining the net realizable value and method for provision for obsolete
inventories
At the balance sheet date, inventories are carried at the lower of cost and net realizable value.
Net realizable 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 realizable value of materials held for use in the production is measured based
on the net realizable value of the finished goods in which they will be incorporated. The net
realizable 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 realizable value of each item of inventories is recognized
as a provision for impairment, and is recognized in profit or loss.
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5.11.4 Inventory count system
The Group maintains a perpetual inventory system.
5.12 Long-term equity investments
5.12.1 Investment cost determination 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 a mount 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 recognized 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
equity securities.
5.12.2 Subsequent measurement and profit and loss recognition methods 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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
been included in the price or consideration paid in obtaining the investments, the Company
recognizes 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 impairment losses.
For the impairment testing method and impairment provision method of the investments in
subsidiaries, refer to Note 5.21.
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 recognized 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 recognized at the investor’s share of the fair value of the investee’s
identifiable net assets, and the difference is recognized in current profit or loss.
- After the acquisition of the investment in joint ventures and associates, the Group
recognizes 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 distribution (referred to as “other changes in owners’ equity”), is recognized
directly in the Group’s equity, and the carrying amount of the investment is adjusted
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive income
and other changes in owners’ equity, the Group recognizes 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. Unrealized 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. Unrealized losses resulting
from transactions between the Group and its associates or joint ventures are el iminated in the
same way as unrealized gains but only to the extent that there is no impairment.
- The Group discontinues recognizing 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 recognizing its share of
those profits only after its share of the profits equals the share of losses not recognized.
For the impairment testing method and impairment provision method of the investments in
joint ventures and associates of this Group, refer to Note 5.21.
5.12.3 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.
5.13 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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
stated in the balance sheet at cost less accumulated depreciation, amortization and
impairment losses, and adopts a depreciation or amortization 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 testing method and impairment
provision method, refer to Note 5.21.
Residual value rate Annual depreciation
Category Useful life (years)
(%) rate (%)
Plant and buildings 20-40 years 0-5% 2.4%-5.0%
5.14 Fixed assets
5.14.1 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 initial cost of a purchased fixed asset comprises the purchase price, related taxes, and
any attributable expenditure for bringing the asset to working condition for its intended use.
The initial cost of self-constructed fixed assets is measured in accordance with the policy set
out in Note 5.15.
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 recognized as a separate fixed asset.
For any subsequent cost of fixed assets, including the cost of replacing part of an item of
fixed assets, when it is probable that the economic benefits associated with the costs will flow
to the Group, it shall be capitalized and included in the cost of fixed assets, and the carrying
amount of the replaced part is derecognized meanwhile; and the costs related to the
day-to-day maintenance of fixed assets shall be recognized in current profit or loss as
incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
5.14.2 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 useful lives, residual value rates and annual depreciation rates of each class of fixed
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
assets are as follows:
Residual value rate Annual depreciation rate
Class Useful life (years)
(%) (%)
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.
5.14.3 For impairment testing method and impairment provision method, refer to Note 5.21.
5.14.4 Disposal of fixed assets
The Group will derecognize of a fixed asset when meeting one of the following conditions:
- 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 recognized in profit or loss on the date of retirement or disposal.
5.15 Construction in progress
The cost of self-constructed fixed assets includes the cost of materials, direct labor,
capitalized borrowing costs, and necessary costs attributable to bringing the asset to working
condition for its intended use.
A self-constructed fixed 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 impairment losses (see
Note 5.21).
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.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
5.16 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition, and construction or
production of a qualifying asset are capitalized as part of the cost of the asset. Other
borrowing costs are recognized as financial expenses when incurred.
During the capitalization period, the amount of interest (including amortization of any
discount or premium on borrowing) to be capitalized 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 capitalized is the interest expense calculated
using effective interest rates during the period less any interest inco me 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
for capitalization is determined by applying a capitalization rate to the weighted average of
the excess amounts of cumulative expenditure on the asset over the above amounts of
specific borrowings. The capitalization 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 recognized amount of the borrowings.
During the capitalization period, exchange differences related to the principal and interest on
a specific-purpose borrowing denominated in foreign currency are capitalized 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 recognized as a
financial expense when incurred.
The capitalization period is the period from the date of commencement of capitalization of
borrowing costs to the date of cessation of capitalization, excluding any period over which
capitalization is suspended. Capitalization 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.
Capitalization of borrowing costs should cease when the qualifying asset being constructed or
produced has reached its expected usable or saleable condition. Capitalization of borrowing
costs is suspended when the acquisition, construction or production activities are interrupted
abnormally for a period of more than three months.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
5.17 Biological assets
The biological assets of the Group are productive biological assets.
Productive biological assets are biological assets 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 attributable expenditure
incurred before satisfying the expected production and operating purpose, including
capitalized borrowing costs.
Productive biological assets, after reaching the expected production and operating purpose,
are depreciated using the straight-line method over its useful life. The useful lives, estimated
net residual value rates and annual depreciation rates of productive biological assets are as
follows:
Estimated net residual rate Annual depreciation rate
Category Useful life (years)
(%) (%)
Vines 20 years 0% 5.0%
The Group evaluates the useful life and expected net residential value by considering the
normal producing life of the productive biological assets.
Useful lives, estimated residual values and depreciation methods of productive biological
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 recognized in profit or loss for the period in which it arises.
5.18 Intangible assets
Service life and amortization method
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 5.21). For an intangible
asset with finite useful life, its cost estimated less residual value and accumulated impairment
losses is amortized on the straight-line method over its estimated useful life, unless the
intangible asset is classified as held for sale.
The respective service life, determination basis, and amortization method for intangible
assets are as follows:
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Service life (years) Determination basis Amortization method
Land use rights 40 – 50 years Period of land use rights Straight-line method
The shorter one of software
Software licenses 5 – 10 years service life or expected Straight-line method
service life
The shorter one of duration
Trademark rights 10 years of trademark rights or Straight-line method
expected service life
The useful life and amortization method of intangible assets with limited useful life are
reviewed at least at each year-end.
An intangible asset is regarded as having an indefinite useful life and is not amortized 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
amortization. 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.
5.19 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 amortized and is stated in the balance sheet at cost less accumulated
impairment losses (see Note 5.21). 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.
5.20 Long-term deferred expenses
Long-term deferred expenses are amortized using a straight-line method within the benefit
period. The respective amortization periods for such expenses are as follows:
Item Amortization period
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Land requisition fee 50 years
Land lease fee 50 years
Greening fee 5-20 years
Renovation fee 3-5 years
Others 3 years
5.21 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.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
An impairment loss is recognized 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 recognized
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 recognized, it is not reversed in a subsequent period.
5.22 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.
5.23 Estimated liabilities
If the obligation related to contingencies is a current obligation undertaken by the Group, and
the performance of such obligation is likely to result in the outflow of economic benefits
from the Group, and the relevant amount can be reliably measured, the Group will recognize
the estimated liability.
The estimated liabilities are initially measured based on the best estimate of the expenses
required to fulfill the relevant current obligations. For assets that have a significant impact on
the time value of money, the estimated liability is determined by discounting the estimated
future cash flows. When determining the best estimate, the Group takes into account factors
such as risks, uncertainties, and time value of money related to contingencies. If the required
expenditure exists a continuous range, and the likelihood of various outcomes occurring
within this range is the same, the best estimate is determined based on the median value
within this range; and in other cases, the best estimate is handled as follows:
- If the contingency involves a single item, it shall be determined based on the most likely
amount to occur.
- If the contingency involves multiple items, it shall be determined based on various
possible outcomes and related probabilities.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
The Group reviews the carrying amount of estimated liabilities on the balance sheet date and
adjusts the carrying amount based on the current best estimate.
5.24 Share-based payment
5.24.1 Type of share-based payment
The share-based payment of this Group is equity-settled share-based payment.
5.24.2 Accounting treatment related to implementing share-based payment plan
- Equity-settled share-based payment
When the Group exchanges shares or other equity instruments for employee services, the
equity instruments granted to employees shall be measured at fair value on the grant date. For
share-based payment transactions that are immediately exercisable upon grant, the Group
recognizes the fair value of equity instruments as relevant costs or expenses on the grant date,
and increases capital reserves accordingly. For share-based payment transactions that can
only be exercised after completing the vesting period for services or meeting the prescribed
performance conditions after the grant, the Group will make the best estimate of the number
of feasible equity instruments on each balance sheet date during the vesting period based on
subsequent information such as changes in the number of feasible employees. Based on this,
the services obtained in the current period will be included in relevant costs or expenses
according to the fair value of the equity instruments on the grant date, and correspondingly
included in capital reserves.
When the Group accepts services but does not have settlement obligations, and the equity
instruments granted to employees are those of the ultimate controlling party of the Company
or its controlled subsidiaries other than the Group, the Group will treat this share-based
payment plan as a share-based payment for equity settlement.
5.25 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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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.
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 considerati on 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;
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
- 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
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 a nd signed by
the customer shall be recognized as the confirming point of the sales revenue.
5.26 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 contract 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
49
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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 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.
5.27 Employee benefits
5.27.1 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 accrued at the applicable benchmarks and rates, are recognized 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.
5.27.2 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 organizations. 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 recognized
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.
5.27.3 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 recognized with a corresponding expense in profit or
loss at the earlier of the following dates:
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
- 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.
5.28 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 recognized 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 recognized as deferred income and amortized 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 recognized as deferred income, and included in other income or
non-operating income in the periods in which the expenses or losses are recognized, or
included in other income or non-operating income directly.
5.29 Income tax
Current tax and deferred tax are recognized in profit or loss except to the extent that they
relate to a business combination or items recognized 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
realize 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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
recognized to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilized.
Deferred tax is not recognized for the temporary differences arising in a single transacti on
that is not a business combination, and affects neither accounting profit nor taxable profit (or
deductible loss) at the time of the transaction, and the initially recognized assets and
liabilities do not result in equal taxable temporary differences or deductible temporary
differences. Deferred tax is not recognized for taxable temporary differences arising from the
initial recognition of goodwill.
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 utilized.
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 realize 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.
5.30 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
52
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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
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.
5.30.1 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 5.21.
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 re-measure lease liabilities at the present value of the lease payment after any
change:
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
- 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 re-measures 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.
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.
5.30.2 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
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 5.10. 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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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.
5.31 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, toget her
as a whole in a single transaction and liabilities directly associated with those assets that will
be transferred in the transaction.
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 recognized as an impairment loss in
profit or loss.
5.32 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be
approved after the balance sheet date, are not recognized as a liability at the balance sheet
date but are disclosed in the notes separately.
5.33 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.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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.
5.34 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
organization 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 2024, over 84% of revenue, more than 90% 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.
5.35 Significant accounting estimates and judgments
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
ongoing basis. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and in any future periods affected.
For significant accounting estimates of this Company, see Notes 5.3, 7, 11 and 16.
5.36 Changes in significant accounting policies and accounting estimates
5.36.1 Changes in significant accounting policies
Nil
5.36.2 Changes in significant accounting estimates
Nil
6. Taxes
6.1 Main taxes and tax rates
Tax category Taxation basis Tax rates
Levied on the balance between the output tax 13%, 9%, 6% (China), 20% (France),
Value added tax calculated based on taxable income and the input 21% (Spain), 19% (Chile), 10%
tax allowed to be deducted in current period. (Australia)
10% of the price, 20% of the price and
Consumption tax Levied on taxable income.
1,000 yuan each ton (China)
City development
Levied on circulation tax actually paid. 7% (China)
tax
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Corporate income 25% (China), 25% (France), 28%
Levied on taxable income.
tax (Spain), 27% (Chile), 30% (Australia)
6.2 Tax incentives
Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”), a subsidiary of the Group,
engaged in grape growing, is incorporated in Yongning County, 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 the
preferential policy of an exemption of corporate income tax from grape cultivation income.
Yantai Changyu Grape Growing Co., Ltd. (“Grape Growing”), a branch of the Company,
engaged in 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 the preferential policy of
an exemption of corporate income tax from grape cultivation income.
Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co., Ltd. (“R&D
and Growing”), a branch of the Company, engaged in 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 the preferential policy of an exemption of corporate income tax from grape cultivation
income.
Beijing Changyu AFIP Agriculture Development Co., Ltd. (“Agriculture Development”), a
subsidiary of the Group, engaged in 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 the preferential policy of an exemption
of corporate income tax from grape cultivation income.
Xinjiang Babao Baron Chateau Co., Ltd. (“Shihezi Chateau”), a subsidiary of the Company,
is an enterprise of wine production 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. (referred to as “Ningxia Chateau”), a subsidiary
of the Company, is an enterprise of wine production 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.
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”), a subsidiary of the Company, is an
enterprise of raw wine production 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 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. 19 of [2023] of the Ministry of Finance and the State
Taxation Administration) on August 1, 2023, small-scale VAT taxpayers with monthly sales
below 100,000 yuan (including this amount) are exempt from value-added tax, 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%. The announcement shall be executed until December 31, 2027,
and Xinjiang Changyu Sales Co., Ltd. Weimeisi Tasting Center Branch enjoys 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,
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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 28,867 74,951
Bank deposit 1,603,134,009 2,217,280,801
Other monetary capital 56,521,864 337,895
Total 1,659,684,740 2,217,693,647
Including: Total overseas deposits 32,640,469 24,317,469
As at June 30, 2024, the bank deposits of the Group including short-term fixed deposits ranging
from 3 months to 12 months and interests amounted to RMB 87,200,000 yuan, with the interest
rates ranging from 1.75% to 2.25% (December 31, 2023: RMB 254,200,000 yuan).
As at June 30, 2024, the details of other monetary funds are listed as follows:
Unit: yuan
Item Ending balance Beginning balance
Deposit investment funds for stock repurchase 49,050,278
Guaranteed deposits paid for the letter of credit 6,500,000
Account balance of Alipay 830,078 192,997
Guaranty money for ICBC platform 10,000 10,000
Guaranty money for customs 131,508 134,898
Total 56,521,864 337,895
As of June 30, 2024, the Group does not have any special interest arrangements such as
establishing joint fund management accounts with related parties.
7.2 Bills receivable
Classification of bills receivable
Item Ending balance Beginning balance
Bank acceptance bills 440,667 1,260,000
Total 440,667 1,260,000
The above bills receivable are all due within one year.
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7.3 Accounts receivable
7.3.1 Disclosed by age:
Unit: yuan
Age Ending book balance Beginning book balance
Within 1 year (including 1 year) 174,171,825 387,161,172
1-2 years 588,650 2,367,283
2-3 years 6,499,530 5,396,673
Over 3 years 365,654
Total 181,260,005 395,290,782
As at June 30, 2024, the accounts receivable with ownership restrictions were RMB 56,793,558
yuan (December 31, 2023: 73,628,265 yuan). Please refer to Note 7.20 for details.
7.3.2 Accounts receivable are analyzed by customer category as follows:
Ending balance
Name
Book balance Provision for bad debts Accrued proportion
Receivable from related parties 4,372,960 4,180 0.96%
Other customers 176,887,045 9,070,906 5.13%
Total 181,260,005 9,075,086 --
7.3.3 Disclosed by provision for bad debts:
Unit: yuan
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Accrued value Accrued value
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
181,260,005 100% 9,075,086 5.01% 172,184,919 395,290,782 100% 13,158,448 3.30% 382,132,334
for bad debts is
accrued on a
combined basis
Total 181,260,005 100% 9,075,086 5.01% 172,184,919 395,290,782 100% 13,158,448 3.30% 382,132,334
7.3.4 Provision for bad debts accrued, withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Unit: yuan
Changes in this period
Beginning Ending
Type Withdrawn or
balance Accrued Cancelled Others balance
transferred back
Provision for bad debts is
13,158,448 -4,083,362 9,075,086
accrued on a combined basis
Total 13,158,448 -4,083,362 9,075,086
7.3.5 Accounts receivable actually cancelled after verification in this period
Nil
7.3.6 Accounts receivable and contract assets situation collected by borrowers of top 5 units
ranked by ending balance
Unit: yuan
Ending balance of Percentage in total Ending balance of bad
Ending balance of Ending
accounts ending balance of debts provision and
Unit name accounts balance of
receivable and accounts receivable provision for impairment
receivable contract assets
contract assets and contract assets of contract assets
Customer 1 25,215,862 25,215,862 13.9% 24,105
Customer 2 10,028,632 10,028,632 5.5% 167,407
Customer 3 6,160,864 6,160,864 3.4% 102,843
Customer 4 5,454,585 5,454,585 3.0% 91,053
Customer 5 4,158,078 4,158,078 2.3% 69,410
Total 51,018,021 51,018,021 28.10% 454,818
7.3.7 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.3.8 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Receivables financing
Unit: yuan
Item Ending balance Beginning balance
Bills receivable 212,135,108 408,316,028
Total 212,135,108 408,316,028
7.4.1 Pledged bills receivable of the Group at the end of the year
Nil
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
7.4.2 Outstanding endorsed bills that have not matured at the end of the year
Type Amount derecognized at end of period
Bank acceptance bills 73,067,006
Total 73,067,006
As at June 30, 2024, bills endorsed by the Group to other parties which are not yet due is RMB
73,067,006 yuan (December 31, 2023: RMB 394,923,505 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 derecognize 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 45,688,203 99.93% 61,468,643 99.95%
1-2 years 29,914 0.07% 29,290 0.05%
2-3 years
More than 3 years
Total 45,718,117 -- 61,497,933 --
7.5.2 Advance payment collected by prepaid parties of top 5 units ranked by ending balance
Unit: yuan
Percentage in the
Relationship with
Client type Amount Age Reason for unsettlement total advance
the Group
payment %
Unit 1 Third party 26,048,133 Within 1 year Prepaid payment for goods 57.0%
Unit 2 Third party 5,389,825 Within 1 year Prepaid payment for goods 11.8%
Unit 3 Third party 2,145,679 Within 1 year Prepaid service charge 4.7%
Unit 4 Third party 1,232,078 Within 1 year Prepaid service charge 2.7%
Unit 5 Third party 500,000 Within 1 year Prepaid service charge 1.1%
Total -- 35,315,715 -- 77.30%
7.6 Other receivables
Unit: yuan
Item Ending balance Beginning balance
Interests receivable
Dividends receivable
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Other receivables 76,437,050 71,496,276
Total 76,437,050 71,496,276
Other receivables
7.6.1 Other receivables classified by nature
Unit: yuan
Nature Ending book balance Beginning book balance
Land acquisition and storage receivable 37,768,902 37,768,902
Consumption tax and added-value tax
export rebate 20,599,820 19,104,008
Deposit and guaranty money receivable 6,627,431 5,429,202
Imprest receivable 266,112 154,354
Others 11,174,785 9,039,810
Total 76,437,050 71,496,276
7.6.2 Other receivables classified by nature
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 31,878,163 29,551,266
1-2 years 41,905,368 39,753,227
2-3 years 334,355 160,000
More than 3 years 2,319,164 2,031,783
Total 76,437,050 71,496,276
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 borrowers of top 5 units ranked by ending balance
Unit: yuan
Percentage in total Ending balance
Unit Name Nature Ending balance Age ending balance of other of provision for
accounts receivable bad debts
Land acquisition and reserve
Unit 1 37,768,902 1-2 years 49.41%
funds
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Value-added tax and
Unit 2 19,390,305 Within 1 year 25.37%
consumption tax export rebate
Unit 3 Housing maintenance fund 2,670,094 Within 1 year 3.49%
Unit 4 Value-added tax export rebate 736,946 Within 1 year 0.96%
Unit 5 Guaranty money 572,880 1-2 years 0.75%
Total -- 61,139,127 79.98%
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 78,086,555 78,086,555 241,961,713 241,961,713
Goods in process 2,164,760,433 2,164,760,433 1,915,860,327 1,915,860,327
Commodity stocks 661,887,880 18,532,217 643,355,663 625,076,081 17,507,534 607,568,547
Total 2,904,734,868 18,532,217 2,886,202,651 2,782,898,121 17,507,534 2,765,390,587
7.7.2 Inventory depreciation provision
Unit: yuan
Increase in this period Decrease in this period
Item Beginning balance Transfer back or Ending balance
Accrual Others Others
write-off
Raw materials
Goods in process
Commodity stocks 17,507,534 18,532,217 17,507,534 18,532,217
Total 17,507,534 18,532,217 17,507,534 18,532,217
7.8 Other current assets
Unit: yuan
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Ending balance Beginning balance
Accounts receivable return cost 16,876,869
Prepaid corporate income tax 17,386,402 4,438,001
Deductible input tax 53,826,234 65,228,189
Expense to be amortized 1,699,779 1,825,483
Total 72,912,415 88,368,542
7.9 Long-term equity investments
Unit: yuan
Movements during the period
Beginning Investment
Declare Ending balance
Beginning balance balance of gains and Other Ending balance
Investee (book value) provision for Increase Decrease losses comprehensive
Other cash Accrual
(book value)
of provision for
equity dividend provision for Others impairment
impairment in capital in capita recognized income
changing impairment
under the adjustment or profit
equity method
1. Joint ventures
SAS L&M Holdings
37,018,893 -1,874,370 35,144,523
(“L&M Holdings”)
Subtotal 37,018,893 -1,874,370 35,144,523
2. Associates
Shanghai Yufeng Brand
Management Co., Ltd.
(“Shanghai Yufeng”) 365,362 23,802 389,164
(Note)
Yantai Guolong Wine
Industry Co., Ltd.
(“Yantai Guolong”) 901,365 -81,524 819,841
(Note)
Subtotal 1,266,727 -57,722 1,209,005
Total 38,285,620 -1,932,092 36,353,528
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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Construction in
Item Houses and buildings Land use right Total
progress
1. Beginning balance 81,165,619 81,165,619
2. Increase in this period
2.1 Outsourcing
2.2 Transfer in from
inventories\fixed assets\
construction in progress
2.3 Business merger increase
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 81,165,619 81,165,619
II. Accumulated depreciation &
accumulated amortization
1. Beginning balance 56,682,788 56,682,788
2. Increase in this period 1,245,831 1,245,831
2.1 Accrual or amortization 1,245,831 1,245,831
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 57,928,619 57,928,619
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 23,237,000 23,237,000
2. Beginning book value 24,482,831 24,482,831
7.11 Fixed assets
Unit: yuan
Item Ending balance Beginning balance
Fixed assets 5,687,285,125 5,795,082,569
Disposal of fixed assets
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Ending balance Beginning balance
Total 5,687,285,125 5,795,082,569
7.11.1 Particulars of fixed assets
Unit: yuan
Houses and Machinery Transportation
Item Total
buildings equipment equipment
I. Original book value:
1. Beginning balance 5,882,104,759 2,811,522,051 24,268,214 8,717,895,024
2. Increase in this period 5,859,902 37,507,199 1,663,156 45,030,257
2.1 Acquisition 5,859,902 36,852,644 1,663,156 44,375,702
2.2 Transfer in from construction in progress 654,555 654,555
2.3 Business merger increase
3. Decrease in this period 5,582,660 530,858 6,113,518
3.1 Disposal or retirement 5,582,660 530,858 6,113,518
3.2 Others
4. Ending balance 5,887,964,661 2,843,446,590 25,400,512 8,756,811,763
II. Accumulated depreciation
1. Beginning balance 1,312,265,801 1,577,413,953 22,769,318 2,912,449,072
2. Increase in this period 77,980,703 73,637,264 715,559 152,333,526
2.1 Accrual 77,980,703 73,637,264 715,559 152,333,526
3. Decrease in this period 5,297,683 321,660 5,619,343
3.1 Disposal or retirement 5,297,683 321,660 5,619,343
3.2 Others
4. Ending balance 1,390,246,504 1,645,753,534 23,163,217 3,059,163,255
III. Impairment provision
1. Beginning balance 10,363,383 10,363,383
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal or retirement
3.2 Others
4. Ending balance 10,363,383 10,363,383
IV. Book value
1. Ending book value 4,497,718,157 1,187,329,673 2,237,295 5,687,285,125
2. Beginning book value 4,569,838,958 1,223,744,715 1,498,896 5,795,082,569
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
As at June 30, 2024, the net value of the fixed assets with ownership restrictions was RMB
33,600,396 yuan (December 31, 2023: RMB 37,985,117 yuan). Please refer to Note 7.20 for
details.
7.11.2 Particulars of temporarily idle fixed assets
Unit: yuan
Accumulated Depreciation
Item Original book value Book value Remarks
depreciation reserves
Machinery equipment 29,423,698 19,060,315 10,363,383
Total 29,423,698 19,060,315 10,363,383
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
Buildings 88,875,383
Machinery equipment 931
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
256,853,439 Under transaction
reception building of Chang’an Chateau
European town, main building and service
155,905,448 Under transaction
building of Chateau AFIP
Wine-making workshop of Changyu
4,094,630 Under transaction
(Jingyang)
Office building, laboratory building and
4,107,265 Under transaction
workshop of Fermentation Center
Finished goods warehouse and workshop
1,898,121 Under transaction
of Kylin Packaging
Others 849,213 Under transaction
Total 423,708,116
7.12 Construction in progress
Unit: yuan
Item Ending balance Beginning balance
Construction in progress 10,097,466 3,323,241
Engineering materials
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Total 10,097,466 3,323,241
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 project of Ningxia Chateau 1,376,147 1,376,147 1,376,147 1,376,147
Construction project of Shihezi Chateau 700,000 700,000 700,000 700,000
Ningxia brewing and fermentation
4,307,599 4,307,599 200,652 200,652
workshop
Projects of other companies 3,713,720 3,713,720 1,046,442 1,046,442
Total 10,097,466 10,097,466 3,323,241 3,323,241
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
7.12.2 Changes of major construction in progress in this period
Unit: yuan
Transferred Including:
Transferred Proportion of Accumulative
to long-term capitalized Capitalization
Beginning Increase in to fixed Ending accumulative capitalized
Project name Budget unamortized amount of ratio of interest in Capital source
balance this period assets in this balance project input in amount of
expenses in interest in this period
period budget interest
this period this period
Construction
project of
780,000,000 700,000 700,000 98% Self-raised funds
Shihezi
Chateau
Ningxia
brewing and
6,900,000 200,652 4,106,947 4,307,599 62.43% Self-raised funds
fermentation
workshop
As at June 30, 2024, there was no indication for impairment of construction in progress of the Group, so no provision for imp airment was made.
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7.13 Productive biological assets
7.13.1 Productive biological assets by cost measurement method
Unit: yuan
Plantation
Total Total
Immature Mature
Ⅰ Original book value
1. Beginning balance 32,791,446 248,838,320 281,629,766
2. Increase in this period -8,621,524 10,035,518 1,413,994
2.1 Outsourcing
2.2 Self cultivation 1,413,994 1,413,994
The immature turn to the mature -10,035,518 10,035,518
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 24,169,922 258,873,838 283,043,760
Ⅱ Accumulated depreciation
1. Beginning balance 104,167,783 104,167,783
2. Increase in this period 8,623,430 8,623,430
2.1 Accrual 8,623,430 8,623,430
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 112,791,213 112,791,213
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 24,169,922 146,082,625 170,252,547
2. Beginning book value 32,791,446 144,670,537 177,461,983
As at June 30, 2024, no ownership of the biological assets was restricted.
As at June 30, 2024, 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 80,425,384 137,980,409 1,697,986 220,103,779
2. Increase in this period 2,020,302 2,020,302
3. Decrease in this period 2,457,813 2,457,813
4. Ending balance 79,987,873 137,980,409 1,697,986 219,666,268
Ⅱ Accumulated amortization
1. Beginning balance 41,596,011 55,403,469 1,358,389 98,357,869
2. Increase in this period 7,955,532 2,898,345 169,799 11,023,676
2.1 Accrual 7,955,532 2,898,345 169,799 11,023,676
3. Decrease in this period 2,457,813 2,457,813
4. Ending balance 47,093,730 58,301,814 1,528,188 106,923,732
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 32,894,143 79,678,595 169,798 112,742,536
2. Beginning book value 38,829,373 82,576,940 339,597 121,745,910
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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 444,520,847 102,888,216 189,715,738 737,124,801
2. Increase in this period 660,155 244,817 226,588 1,131,560
2.1 Acquisition 660,155 244,817 226,588 1,131,560
2.2 Internal R&D
2.3 Business merger increase
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 445,181,002 103,133,033 189,942,326 738,256,361
Ⅱ Accumulated amortization
1. Beginning balance 108,815,810 69,678,463 16,004,752 194,499,025
2. Increase in this period 4,471,972 3,805,579 231,609 8,509,160
2.1 Accrual 4,471,972 3,805,579 231,609 8,509,160
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 113,287,782 73,484,042 16,236,361 203,008,185
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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Land use right Software use right Trademark Total
1. Ending book value 331,893,220 29,648,991 173,705,965 535,248,176
2. Beginning book value 335,705,037 33,209,753 173,710,986 542,625,776
As at December 31, 2023, no ownership of the intangible assets was restricted.
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 forming Beginning Ending
Formed by
goodwill balance Others Disposal Others balance
business merger
Etablissements Roullet Fransac (“Roullet
13,112,525 13,112,525
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
Unit: yuan
Name of the invested unit or matter forming Beginning Increase in this period Decrease in this period Ending
goodwill balance Accrual Others Disposal Others balance
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
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Increase in this Amortization in this
Item Beginning balance Other decreases Ending balance
period period
Land acquisition
43,264,838 736,215 42,528,623
fees
Afforestation fees 110,315,085 4,289,952 106,025,133
Renovation costs 146,637,493 11,926,605 5,050,794 153,513,304
Others 6,444,691 361,155 415,666 6,390,180
Total 306,662,107 12,287,760 10,492,627 308,457,240
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 tax Deductible temporary Deferred income tax
difference assets difference assets
Asset impairment provision 37,970,686 9,798,697 41,029,365 10,563,366
Unrealized profits from
284,529,904 71,132,476 403,653,124 100,913,281
inter-company transactions
Deductible loss 299,702,899 71,532,349 261,937,563 61,634,797
Unpaid bonus 62,021,830 15,505,458 138,873,637 34,718,409
Dismission welfare 6,265,119 1,566,280 8,475,845 2,118,961
Deferred income 29,292,739 6,209,492 32,582,734 7,021,304
Influence of restricted stock
21,985,751 5,451,742 17,614,180 4,370,992
incentive plans
Influence of leasing
560,352 140,088 708,367 177,094
standards
Total 742,329,280 181,336,582 904,874,815 221,518,204
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 tax
difference liabilities difference liabilities
Assets appraisal appreciation in
business combination under 25,553,660 7,397,675 26,659,530 7,718,480
non-common control
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Impact of leasing standards 3,664,135 931,848 3,995,628 1,001,249
Total 29,217,795 8,329,523 30,655,158 8,719,729
7.18.3 Details of unconfirmed deferred income tax assets
Unit: yuan
Item Ending balance Beginning balance
Deductable temporary difference
Deductible loss 466,268,251 420,651,124
Total 466,268,251 420,651,124
7.18.4 Deductible losses of unconfirmed deferred income tax assets will expire in
Unit: yuan
Year Ending sum Beginning sum Remark
2024 36,171,778 36,171,778
2025 70,528,510 70,528,510
2026 68,479,171 68,479,171
2027 128,025,572 128,025,572
2028 117,446,093 117,446,093
2029 45,617,127
Total 466,268,251 420,651,124 --
7.19 Other non-current assets
Unit: yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Advance payment
1,760,000 1,760,000
for construction
Total 1,760,000 1,760,000
7.20 Assets with restricted ownership or use rights
Unit: yuan
Ending Beginning
Item Book Book Restriction Restriction Book Restriction Restriction
Book value
balance value type state balance type state
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Monetary Security Security
7,471,586 7,471,586 Pledge 337,895 337,895 Pledge
capital deposit, etc. deposit, etc.
Fixed Mortgage Mortgage
46,653,467 33,600,396 Pledge 46,653,467 37,985,117 Pledge
assets loan loan
Accounts Factoring Factoring
56,793,558 56,793,558 Pledge 73,628,265 73,628,265 Pledge
receivable restricted restricted
Total 110,918,611 97,865,540 120,619,627 111,951,277
7.21 Short-term loans
7.21.1 Classification of short-term loans
Unit: yuan
Item Ending balance Beginning balance
Mortgage loan 153,403,322 163,103,275
Guaranteed loan 23,272,320
Fiduciary loan 48,654,201 178,605,850
Total 202,057,523 364,981,445
As at June 30, 2024, EUR mortgage loan was EUR 7,412,647 (equivalent of RMB 56,793,558
yuan) (December 31, 2023: EUR 9,368,417, equivalent of RMB 73,628,264 yuan) of accounts
receivable factoring business handled by Hacienday Vinedos Marques del Atrio, S.L.U. (“Atrio”)
with banks including Banco Santander, BBVA, and CAIXABANK;
As at June 30, 2024, USD mortgage loan was USD 13,500,000 (equivalent of RMB 96,609,764
yuan) (December 31, 2023: USD 12,625,000, equivalent of RMB 89,475,011 yuan) of loans
borrowed by Chile Indomita Wine Group from Banco Scotiabank with the fixed assets as collateral.
On June 30, 2024, AUD guaranteed loan (December 31, 2023: AUD 4,800,000, equivalent of
RMB 23,272,320 yuan) borrowed by Australia Kilikanoon Estate from ANZ Bank has been repaid.
7.22 Accounts payable
7.22.1 List of accounts payable
Unit: yuan
Item Ending balance Beginning balance
77
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Accounts payable for materials, etc. 397,974,969 473,352,525
Total 397,974,969 473,352,525
7.22.2 No significant accounts payable aged more than one year in this year
7.23 Contract liabilities
Unit: yuan
Item Ending balance Beginning balance
Advances from customers 138,471,595 174,757,233
Withholding of goods with sales rebate 521,616
Total 138,471,595 175,278,849
7.24 Employee remunerations payable
7.24.1 List of employee remunerations payable
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
1. Short-term remuneration 176,534,963 144,584,655 239,758,114 81,361,504
2. Post-employment welfare –
320,484 26,564,658 26,842,233 42,909
defined contribution plan
3. Dismission welfare 8,475,845 1,691,342 3,902,068 6,265,119
4.Other welfare due within one year
Total 185,331,292 172,840,655 270,502,415 87,669,532
7.24.2 List of short-term remunerations
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
1. Salaries, bonuses, allowances and 173,350,251 119,089,375 214,144,911 78,294,715
subsidieswelfare 1,247,367 9,409,212 9,211,771 1,444,808
3. Social insurance charges 295,016 7,771,769 8,012,615 54,170
Including: Medical insurance 295,016 7,118,130 7,359,182 53,964
Injury insurance 650,794 650,588 206
Maternity insurance 2,845 2,845
4. Housing fund 38,582 6,407,429 6,407,429 38,582
5. Union fee and staff education fee 1,603,747 1,906,870 1,981,388 1,529,229
6. Short-term compensated absences
7. Short-term profit-sharing plan
78
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Beginning balance Increase in this period Decrease in this period Ending balance
Minus: Those divided into
non-current liabilities
Total 176,534,963 144,584,655 239,758,114 81,361,504
7.24.3 List of defined contribution plan
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
1. Basic endowment
319,251 25,961,016 26,237,613 42,654
insurance
2. Unemployment
1,233 603,642 604,620 255
insurance
3. Enterprise annuity
payment
Total 320,484 26,564,658 26,842,233 42,909
7.24.4 Dismission welfare
Unit: yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Compensation for server of labor
relation
2. Compensation for early retirement 8,475,845 1,691,342 3,902,068 6,265,119
Total 8,475,845 1,691,342 3,902,068 6,265,119
7.25 Taxes and dues payable
Unit: yuan
Item Ending balance Beginning balance
Value added tax 21,721,295 65,545,854
Consumption tax 20,725,067 50,879,210
Corporate income tax 87,628,791 134,574,175
Individual income tax 1,007,144 1,414,309
Urban maintenance and construction tax 2,136,859 6,787,018
Education surcharges 1,584,093 5,072,436
Urban land use tax 2,270,307 1,730,986
79
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Ending balance Beginning balance
Others 8,723,568 8,719,443
Total 145,797,124 274,723,431
7.26 Other payables
Unit: yuan
Item Ending balance Beginning balance
Interest payable
Dividends payable 383,085
Other payables 353,135,333 555,634,336
Total 353,518,418 555,634,336
7.26.1 Dividends payable
Unit: yuan
Item Ending balance Beginning balance
Ordinary stock dividends
Preferred stock dividends/sustainable debt
dividends divided into equity instruments
Others 383,085
Total 383,085
7.26.2 Other payables
7.26.2.1 Other payables listed by nature
Unit: yuan
Item Ending balance Beginning balance
Dealer’s deposit payable 172,539,878 194,060,993
Equipment purchase and construction costs payable 11,311,800 14,832,439
Transportation charges payable 9,225,843 22,301,368
Trademark use fee payable 7,858,548 27,515,798
Advertisement expenses payable 10,668,411 104,815,517
Employee cash deposit 309,282 462,672
Supplier’s deposit payable 15,585,662 18,284,971
Contracting fees payable 1,165,170 3,360,355
Repurchase of treasury stock funds payable 99,777,462 103,411,919
Equity payment payable 14,623,377 14,623,377
80
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Others 10,069,900 51,964,927
Total 353,135,333 555,634,336
7.26.2.2 Explanation of large accounts payable aged more than one year
As at June 30, 2024, there were no other large accounts payable aged more than one year.
7.27 Non-current liabilities due within one year
Unit: yuan
Item Ending balance Beginning balance
Long-term loans due within one year 57,151,244 58,510,868
Bonds payable due within one year
Long-term accounts payable due within
one year
Lease liabilities due within one year 24,080,511 20,013,125
Total 81,231,755 78,523,993
7.28 Other current liabilities
Item Ending balance Beginning balance
Refund payable 24,869,246
Unamortized VAT amount 18,001,307 20,089,051
Total 18,001,307 44,958,297
7.29 Long-term loans
7.29.1 Classification of long-term loans
Unit: yuan
Item Ending balance Beginning balance
Fiduciary loan 93,803,175 125,127,311
Minus: Long-term loans due within one
57,151,244 58,510,868
year
Total 36,651,931 66,616,443
As at June 30, 2024, fiduciary loans (EUR) were EUR 12,243,128 (equivalent of RMB 93,803,175
yuan) (December 31, 2023: EUR 15,921,126, equivalent of RMB 125,127,311 yuan) borrowed by
Atrio from banks including Banco de Sabadell S.A., Bankia, Banco Santander, BBVA, and Caja
81
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Rural de Navarr.
7.30 Lease Liabilities
Unit: yuan
Item Ending balance Beginning balance
Long-term lease liabilities 92,215,196 105,051,460
Minus: Lease liabilities due within one year 24,080,511 20,013,125
Total 68,134,685 85,038,335
7.31 Deferred income
Unit: yuan
Increase in this Decrease in this
Item Beginning balance Ending balance Forming reason
period period
Governmental
32,582,734 576,000 3,865,995 29,292,739
subsidy
Total 32,582,734 576,000 3,865,995 29,292,739 --
Projects related to governmental subsidy
Unit: yuan
Amount of Amount included Amount Amount
Related to
Beginning subsidy newly in non-operating included in offset the Other Ending
Item of liabilities assets/
balance increased in this revenue in this other cost changes balance
income
period period income in expenses
Industrial development Related to
12,300,000 2,050,000 10,250,000
supporting funds assets
Subsidy for retaining Related to
8,835,333 494,000 8,341,333
wall assets
Xinjiang industrial
revitalization and Related to
8,532,000 711,000 7,821,000
technological assets
transformation project
Wine fermentation
Related to
capacity construction 1,200,000 200,000 1,000,000
assets
(Huanren) project
Special funds for
Related to
efficient water-saving 829,000 81,000 748,000
assets
irrigation project
82
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Amount of Amount included Amount Amount
Related to
Beginning subsidy newly in non-operating included in offset the Other Ending
Item of liabilities assets/
balance increased in this revenue in this other cost changes balance
income
period period income in expenses
Subsidy for economic
and energy-saving Related to
384,900 64,150 320,750
technological assets
transformation projects
Subsidy for scenic spot Related to
245,784 12,500 233,284
construction assets
Subsidy for mechanic
Related to
development of Penglai 55,717 17,345 38,372
assets
Daliuhang Base
Jugezhuang government Related to
200,000 576,000 236,000 540,000
leisure agriculture subsidy income
Total 32,582,734 576,000 3,865,995 29,292,739
7.32 Share capital
Unit: yuan
Increase or decrease (+,-) in this period
Ending
Item Beginning balance Newly issued Allocated Share transferred from
Others Subtotal balance
shares shares accumulation fund
Total shares 692,249,559 692,249,559
7.33 Capital reserves
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
Capital premium (share capital
615,678,532 25,146,195 17,816 640,806,911
premium)
Other capital reserves 35,408,175 780,883 34,627,292
Total 651,086,707 25,146,195 798,699 675,434,203
During the reporting period, the implementation of restricted stock incentive plans resulted in an
increase of RMB 25,146,195 yuan in capital reserves due to the recognition of amortization
expenses.
Due to the acquisition of a minority equity in Australia Kilikanoon Estate, the Company
recognized in the capital reserve the difference between the newly-acquired long-term equity
investment and the net asset share of the subsidiary that shall be continuously calculated from the
date of acquisition based on the newly-increased shareholding ratio, resulting i n a decrease of RMB
780,883 yuan in capital reserve. Please refer to Note 10.2 for details.
83
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
According to the Plan for Repurchasing Shares of Part of Domestic Listed Foreign Shares
(B-shares) of the Company approved at the first extraordinary general meeting of shareholders in
2024, from January to June 2024, the transaction costs incurred by the Company in repurchasing the
Company’s shares through the dedicated securities account amounted to RMB 17,816 yuan,
offsetting the capital premium of RMB 17,816 yuan.
7.34 Treasury share
Item Beginning balance Increase in this period Decrease in this period Ending balance
Repurchase of B-shares 150,932,125 150,932,125
Repurchase of restricted stock 103,411,919 3,419,921 99,991,998
Total 103,411,919 150,932,125 3,419,921 250,924,123
The first extraordinary board meeting of 2024 was held on February 22, 2024, and the first
extraordinary shareholders’ meeting of 2024 was held on March 11, 2024. The Plan for
Repurchasing Shares of Part of Domestic Listed Foreign Shares (B-shares) of the Company was
reviewed and approved. According to the above-mentioned B-share repurchase plan, the Company
will implement the repurchase of domestic listed foreign shares (B-shares) through centralized
bidding trading, taking into account its own financial and operating conditions, with a total
repurchase capital not exceeding RMB 200 million yuan and a repurchase price not exceeding HKD
12.65 per share (as the Company has implemented the 2023 equity distribution, the upper limit of
the repurchase price of B-shares through centralized bidding trading has been adjusted from no
more than HKD 12.65 per share (inclusive) to no more than HKD 12.11 per share (inclusive)). The
repurchase period shall not exceed 12 months from the date of approval of share repurchase plan by
the shareholders’ meeting. The number of shares to be repurchased shall not be less than 10 million
shares and shall not exceed 20 million shares. The repurchased shares shall be cancelled and the
registered capital of the Company shall be correspondingly reduced.
As of June 30, 2024, the Company has repurchased a total of 16,860,000 domestic listed foreign
shares (B-shares) through centralized bidding method via a special securities account for share
repurchase, accounting for 2.4355378% of the Company’s current total share capital. The highest
transaction price was HKD 10.16 per share, the lowest transaction price was HKD 9.26 per share,
and the total transaction amount was HKD 162,467,975.57 (excluding transaction costs), equivalent
to RMB 150,932,125.
According to the Company’s 2023 profit distribution plan, the Company distributes a cash
dividend of 3,419,921 yuan to restricted stock incentive objects, and reduced the amount of treasury
stock by 3,419,921 yuan in accordance with relevant provisions of Enterprise Accounting
Standards.
7.35 Other comprehensive income
Unit: yuan
Item Beginning Amount incurred in this period Ending
84
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
balance Minus: amount balance
Minus: amount
included in included in
Amount other
other Minus: Attributable Attributable
incurred comprehensive income
comprehensive to parent to minority
before income income before income before
and transferred tax company shareholders
tax in this and transferred to retained expenses after tax after tax
period to profit or loss
in this period earnings in
this period
1. Other comprehensive income
not to be reclassified into profit
and loss later
Including: Changes after
re-measuring 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 risk
2. Other comprehensive income
to be reclassified into profit and -14,784,677 -11,182,076 -10,069,669 -1,112,407 -24,854,346
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 Currency Financial -14,784,677 -11,182,076 -10,069,669 -1,112,407 -24,854,346
Statement
Total other comprehensive income -14,784,677 -11,182,076 -10,069,669 -1,112,407 -24,854,346
85
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
7.36 Surplus reserves
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
Legal surplus reserves 342,732,000 342,732,000
Free surplus reserves
Reserve fund
Enterprise expansion fund
Others
Total 342,732,000 342,732,000
7.37 Undistributed profit
Unit: yuan
Item This period Prior period
Undistributed profit at the end of prior period before adjustment 9,273,629,318 9,049,649,211
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
9,273,629,318 9,049,649,211
adjustment
Plus: Net profit for owner of the parent company 221,177,382 532,438,907
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 345,910,244 308,458,800
Common dividend transferred to share capital
Undistributed profit at the end of period 9,148,896,456 9,273,629,318
7.38 Operating income and operating cost
7.38.1 Details of operating income
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 1,487,897,428 583,656,058 1,934,472,124 796,260,619
Other businesses 34,412,008 12,092,672 32,266,361 9,198,773
86
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Total 1,522,309,436 595,748,730 1,966,738,485 805,459,392
Including: Income from contracts 1,519,454,062 593,381,289 1,965,668,542 804,756,028
Income from house rents 2,855,374 2,367,441 1,069,943 703,364
7.38.2 Situation of income from and cost of contracts
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
- Alcoholic beverage 1,487,897,428 583,656,058
- Others 31,556,634 9,725,231
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 1,519,454,062 593,381,289
7.39 Taxes and surcharges
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 73,844,921 83,799,789
Urban maintenance and construction tax 8,854,663 13,221,014
Education surcharges 6,398,857 9,591,885
Building tax 16,684,157 17,081,105
Land use tax 4,946,440 5,443,389
Vehicle and vessel use tax 13,677 13,298
Stamp duty 1,928,621 2,190,579
Others 149,271 106,007
Total 112,820,607 131,447,066
7.40 Selling expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Salary and welfare expenses 109,157,587 133,331,239
Marketing expenses 108,239,032 150,784,963
Labor expenses 14,966,602 18,891,110
87
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Depreciation expenses 33,555,237 31,599,626
Storage expenses 12,833,741 13,287,122
Advertisement expenses 27,638,002 25,707,453
Trademark use fees 7,858,547 11,320,305
Travel expenses 12,764,888 12,462,566
Design & production expenses 2,757,387 9,833,969
Conference expenses 3,299,438 4,528,120
Water, electricity and gas charges 4,438,730 4,658,860
Restricted stock incentive plan expenses 17,339,929
Others 37,067,395 36,596,377
Total 391,916,515 453,001,710
7.41 Management expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Employee remunerations 32,475,958 29,528,907
Depreciation expenses 40,527,533 46,150,402
Contracting expenses 2,007,300 2,119,800
Repair expenses 2,193,997 1,865,967
Office expenses 10,921,919 10,169,392
Amortization expenses 7,922,598 8,377,335
Afforestation fees 6,807,871 6,950,800
Safe production costs 2,940,546 3,124,162
Business entertainment expenses 1,475,072 1,373,098
Public security & clean-keeping expenses 3,208,403 3,539,193
Travel expenses 1,527,146 1,235,690
Depreciation and amortization of
4,290,210 4,510,427
right-of-use assets
Restricted stock incentive plan expenses 7,806,266 671,300
Others 8,840,796 9,078,922
Total 132,945,615 128,695,395
7.42 R&D expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 6,748,675 6,653,626
Total 6,748,675 6,653,626
88
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
7.43 Financial expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 9,918,886 12,325,532
Minus: Interest income 12,390,815 9,060,578
Plus: Commission charges 705,999 662,758
Exchange gain or loss 4,989,440 -701,279
Total 3,223,510 3,226,433
7.44 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
200,000 200,000
project
Xinjiang industrial revitalization and
711,000 711,000
technological transformation project
Subsidy for retaining wall 494,000 319,000
Other – related to assets 174,996 502,740
Special funds for supporting corporate
8,732,100 14,840,000
development
Talent development fund 3,650,000
Market development and product
15,500,000 4,300,000
development subsidies
Other – related to income 2,118,544 6,048,445
Total 33,630,640 28,971,185
7.45 Investment income
Unit: yuan
Amount incurred in this Amount incurred in prior
Item
period period
Investment income from long-term equity by equity method -1,932,092 -932,588
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
89
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Amount incurred in this Amount incurred in prior
Item
period period
Dividend income gained from other equity instruments during the holding
period
Gains generated from the remaining equity re-measured as per fair value
after the loss of control
Interest income gained from equity investment during the holding period
Interest income gained from other equity investments during the holding
period
Investment income gained from disposal of other equity investments
Total -1,932,092 15,614,536
7.46 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 4,083,362 -993,494
Total 4,083,362 -993,494
7.47 Loss on impairment of assets
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Inventory falling price loss and loss on
-1,024,683 -244,434
impairment of contract execution cost
Total -1,024,683 -244,434
7.48 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 4,647 341,232
Income from disposal of productive
-639,633
biological assets
Total 4,647 -298,401
7.49 Non-operating income
Unit: yuan
90
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Amount incurred in this Amount incurred in prior Amount included in the current
Item
period period non-recurring profits/losses
Gains on exchange of non-monetary assets
Grains on donations
Governmental subsidy
Gains on scrap of non-current assets 975 975
Others 1,676,650 1,772,522 1,676,650
Total 1,677,625 1,772,522 1,677,625
7.50 Non-operating expenses
Unit: yuan
Amount incurred in Amount incurred Amount included in the current
Item
this period in prior period non-recurring profits/losses
Loss on exchange of non-monetary assets
Donation 350,000 900,000 350,000
Loss on scrap of non-current assets 101,292 20,717 101,292
Fine, penalty and overdue fine paid due to violation of
131,210 104,298 131,210
laws and administrative regulations
Others 29,081 1,100,930 29,081
Total 611,583 2,125,945 611,583
7.51 Income tax expenses
7.51.1 List of income tax expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Current income tax expenses 52,966,929 120,466,280
Deferred income tax expenses 39,791,416 9,884,233
Total 92,758,345 130,350,513
7.51.2 Adjustment process of accounting profit and income tax expenses
Unit: yuan
Item Amount incurred in this period
Total profit 314,733,700
Income tax expenses calculated according to the legal/applicable tax rate 78,683,425
Influence of different tax rates applicable to subsidiary 502,595
91
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Amount incurred in this period
Influence of income tax in the term before adjustment 1,396,038
Influence of nontaxable income
Influence of non-deductible costs, expenses and losses 2,212,619
Influence of deductible loss from use of unconfirmed deferred income tax
-1,024,750
assets in prior period
Influence of deductible temporary difference or deductible loss of
10,988,418
unconfirmed deferred income tax assets in this period
Income tax expense 92,758,345
7.52 Other comprehensive incomes
Refer to Note 7.35 for details.
7.53 Items of cash flow statement
7.53.1 Other cash received related to operating activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 30,340,645 24,849,782
Interest income 7,777,846 8,892,658
Net amercement income 39,759 254,866
Others 10,735,002 13,253,796
Total 48,893,252 47,251,102
7.53.2 Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 239,116,719 242,901,628
Administrative expenses 37,828,283 41,163,720
Guaranteed deposits paid 6,500,000
Others 13,297,751 8,743,269
Total 296,742,753 292,808,617
7.53.3 Other cash received related to investing activities
Unit: yuan
92
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Amount incurred in this period Amount incurred in prior period
Net cash received from acquiring subsidiaries 657,049
Total 657,049
7.53.4 Other cash paid related to financing activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Cash paid for repurchasing B shares 150,949,941
Cash paid for leasing 14,897,311 11,384,300
Cash paid for acquiring minority shareholders’ equity 1,883,538 14,623,400
Capital reduction paid to minority shareholders 12,000,000
Total 167,730,790 38,007,700
Changes in various liabilities arising from financing activities
Unit: yuan
Increase in this period Decrease in this period
Beginning Ending
Item Cash Non-cash Cash Non-cash
balance balance
movement movement movement movement
Short-term loans 364,981,445 221,741,429 2,425,452 371,150,698 15,940,105 202,057,523
Long term loans (including long-term
125,127,311 85,321,908 113,501,622 3,144,422 93,803,175
liabilities due within one year)
Lease liab ilit ies (including lease liab ilities due
105,051,460 2,061,047 14,897,311 92,215,196
within one year)
Other payables - dividends payable 346,124,780 346,124,780
Other payables - interest payable 13,247,788 13,247,788
Other payables - equity payment payable 14,623,377 14,623,377
Other payables - accounts payable for
103,411,919 3,634,457 99,777,462
repurchasing treasury shares
Other payables – repurchasing B shares 150,949,941 150,949,941
Other payables - return the investment of
1,883,538 1,883,538
minority shareholders
Total 713,195,512 307,063,337 516,692,546 1,011,755,678 22,718,984 502,476,733
7.54 Supplementary information to cash flow statement
7.54.1 Supplementary information to cash flow statement
Unit: yuan
Supplementary materials Amount in this period Amount in prior period
1. Cash flows from operating activities calculated by adjusting -- --
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Supplementary materials Amount in this period Amount in prior period
the net profit:
Net profit 221,975,355 350,600,319
Plus: Provision for impairment of assets -3,058,679 1,237,928
Depreciation of fixed assets, oil-and-gas assets and
162,202,787 164,005,102
productive biological assets
Depreciation of right-of-use assets 11,023,676 11,082,444
Amortization of intangible assets 8,509,160 8,936,336
Amortization of long-term deferred expenses 10,492,627 9,079,775
Losses on disposal of fixed assets, intangible assets and
-4,647 298,401
other long-term assets (profit listed with “-”)
Losses on retirement of fixed assets (profit listed with
100,317 20,717
“-”)
Losses on fair value change (profit listed with “-”)
Financial costs (profit listed with “-”) 6,383,382 10,419,504
Investment losses (profit listed with “-”) 1,932,092 -15,614,536
Decrease in deferred income tax assets (increase listed
40,181,622 12,217,010
with “-”)
Increase of deferred income tax liabilities (decrease
-390,206 -2,332,777
listed with “-”)
Decrease in inventories (increase listed with “-”) -121,836,747 -22,578,567
Decrease in operating receivables (increase listed with
423,502,362 217,964,425
“-”)
Increase in operating payable (decrease listed with “-”) -582,278,932 -218,087,595
Others 25,146,195 671,300
Net cash flows from operating activities 203,880,364 527,919,786
2. Significant investment and financing activities not involving
cash deposit and withdrawal:
Debt transferred into assets
Convertible corporate bond due within one year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent:
Ending balance of cash 1,562,989,249 1,423,080,779
Minus: Beginning balance of cash 1,963,155,752 1,612,753,600
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
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Supplementary materials Amount in this period Amount in prior period
Net increase amount of cash and cash equivalent -400,166,503 -189,672,821
7.54.2 Composition of cash and cash equivalents
Unit: yuan
Item Ending balance Beginning balance
1. Cash 1,562,989,249 1,963,155,752
Including: Cash on hand 28,867 59,243
Bank deposits available for payment at any time 1,513,910,104 1,423,021,536
Other monetary funds available for payment at any time 49,050,278
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 1,562,989,249 1,963,155,752
7.55 Monetary items of foreign currency
7.55.1 Monetary items of foreign currency
Ending balance at foreign Ending balance at RMB
Item Converted exchange rate
currency equivalent
Monetary capital 47,232,240
Including: USD 480,399 7.1268 3,423,708
EUR 67 7.6617 513
HKD 48,003,527 0.9126 43,808,019
Accounts receivable 49,612,082
Including: USD 5,801,250 7.1268 41,344,349
EUR 303,383 7.6617 2,324,430
CAD 1,107 5.2274 5,787
GBP 656,587 9.0430 5,937,516
Short-term borrowings 97,102,650
Including: USD 13,625,000 7.1268 97,102,650
EUR
HKD
-- --
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7.55.2 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 currency of
Chile Indomita Wine Group is Chilean Peso, and the functional currency of Australia Kilikanoon
Estate is Australian Dollar.
8. R&D expenditure
Item Amount incurred in this period Amount incurred in prior period
Employee compensation 1,743,745 1,103,311
Test and laboratory fees 117,777 163,766
Consulting fees 1,646,916 1,892,504
Consumption of materials 176,976 216,395
Others 3,063,261 3,277,650
Total 6,748,675 6,653,626
Including: Expensing research and development expenses 6,748,675 6,653,626
Capitalized research and development expenses
9. Change of scope of consolidation
In the reporting period, the following new company was included to the consolidation scope of the
Group:
Method of obtaining Business Actual capital
Full name of investee Foundation date Registered capital
equity nature contribution
Ningxia Longyu Food
Establishment May 6, 2024 Sales RMB 500,000 yuan
Trading Co., Ltd.
10. Equity in other entities
10.1 Equity in subsidiaries
10.1.1 Constitution of enterprise group
Principal Proportion of
Registration Business
Name of subsidiary Registered capital business shareholding Acquisition mode
place nature
location Direct Indirect
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Principal Proportion of
Registration Business
Name of subsidiary Registered capital business shareholding Acquisition mode
place nature
location Direct Indirect
Acquired fro m a
Etablissements Roullet Fransac business combination
EUR2,900,000 Cognac, France Cognac, France Trading 100 under non-common
(“Roullet Fransac”)
control
Acquired fro m a
business combination
Dicot Partners, S.L (“Dicot”) EUR2,000,000 Navarre, Spain Navarre, Spain Sales 90 under non-common
control
ViaIndómita,
Acquired by
S.A.,ViaDosAndes, S.A., and
CLP31,100,000,000 Santiago, Chile Santiago, Chile Sales 85 establishment or
BodegasSanta Alicia SpA. investment
(“Indomita Wine”)
Acquired fro m a
Kilikanoon Estate Pty Ltd. Adelaide, Adelaide, business combination
(“Australia Kilikanoon Estate”) AUD6,420,000 Australia Australia Sales 99 under non-common
control
Beijing Changyu Sales and Acquired by
Distribution Co., Ltd. (“BeijingRMB1,000,000 Beijing, China Beijing, China Sales 100 establishment or
Sales”) investment
Yantai Kylin Packag ing Co., Yantai, Yantai, Acquired by
RMB15,410,000 Shandong, Shandong, Manufacturing 100 establishment or
Ltd. (“Kylin Packaging”) China China investment
Yantai Chateau Changyu-Castel Yantai, Yantai, Acquired by
Co., Ltd. (“Chateau Changyu”) USD5,000,000 Shandong, Shandong, Manufacturing 70 establishment or
(a) China China investment
Changyu (Jingyang) Wine Co., Acquired by
Xianyang, Xianyang,
RMB1,000,000 Shaanxi, China Shaanxi, China Manufacturing 90 10 establishment or
Ltd. (“Jingyang Wine”) investment
Yantai Changyu Pioneer Wine Yantai, Yantai, Acquired by
Sales Co., Ltd. (“Sales RMB8,000,000 Shandong, Shandong, Sales 100 establishment or
Company”) China China investment
Shanghai Changyu Sales and Acquired by
Distribution Co., Ltd. RMB1,000,000 Shanghai, China Shanghai, China Sales 100 establishment or
(“Shanghai Sales”) investment
Beijing Changyu AFIP
Agriculture development Co., Miyun, Beijing, Miyun, Beijing, Acquired by
Ltd. (“Agriculture RMB1,000,000 China China Sales 100 establishment or
investment
Development”)
Beijing Chateau Changyu AFIP Acquired by
RMB642,750,000 Beijing, China Beijing, China Manufacturing 91.53 establishment or
Global Co., Ltd. (“AFIP”) (b) investment
Yantai Changyu Wine Sales Co., Yantai, Yantai, Acquired by
RMB5,000,000 Shandong, Shandong, Sales 90 10 establishment or
Ltd. (“Wines Sales”) China China investment
Yantai Changyu Pioneer Yantai, Yantai, Acquired by
International Co., Ltd. (“Pioneer RMB5,000,000 Shandong, Shandong, Sales 70 30 establishment or
International”) China China investment
Hangzhou Changyu Wine Sales Acquired by
Hangzhou, Hangzhou,
Co., Ltd. (“Hangzhou RMB500,000 100 establishment or
Zhejiang, China Zhejiang, China Sales investment
Changyu”)
Ning xia Changyu Grape Acquired by
Yinchuan,
Growing Co., Ltd. (“Ning xia RMB1,000,000 Ningxia, China Planting 100 establishment or
Ningxia, China
Growing”) investment
Huanren Changyu National Acquired by
Ben xi, Ben xi,
Wines Sales Co., Ltd. RMB2,000,000 establishment or
Liaoning, China Liaoning, China Sales 100
investment
(“National Wines”)
Liaoning Changyu Golden Acquired by
Ben xi, Ben xi,
Icewine Valley Co., Ltd. RMB59,687,300 establishment or
Liaoning, China Liaoning, China Manufacturing 100
(“Golden Icewine Valley”) investment
Yantai Develop ment Zone Yantai, Yantai, Acquired by
Changyu Trading Co., Ltd. RMB5,000,000 Shandong, Shandong, Sales 100 establishment or
(“Development Zone Trading”) China China investment
Miyun, Beijing, Miyun, Beijing, Acquired by
Beijing AFIP Meeting Center RMB500,000 China China Services 100
establishment or
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Principal Proportion of
Registration Business
Name of subsidiary Registered capital business shareholding Acquisition mode
place nature
location Direct Indirect
(“Meeting Center”) investment
Beijing AFIP Tourism and Acquired by
Miyun, Beijing, Miyun, Beijing,
Culture (“AFIP Tourism”) RMB500,000 China China Tourism 100 establishment or
investment
Changyu (Ning xia) Wine Co., Acquired by
RMB1,000,000 Ningxia, China Ningxia, China Manufacturing 100 establishment or
Ltd. (“Ningxia Wine”) investment
Yantai Changyu Chateau Tinlot Yantai, Yantai, Acquired by
Wholesale and
RMB400,000,000 Shandong, Shandong, retail 65 35 establishment or
Co., Ltd. (“Chateau Tinlot”) China China investment
Xin jiang Chateau Changyu Acquired by
Shihezi, Shihezi,
Baron Balboa Co., Ltd. RMB550,000,000 Xinjiang, China Xinjiang, China Manufacturing 100 establishment or
(“Chateau Shihezi”) investment
Ning xia Chateau Changyu Acquired by
Yinchuan, Yinchuan,
Longyu Co., Ltd. (“Chateau RMB2,000,000 Manufacturing 100 establishment or
Ningxia, China Ningxia, China investment
Ningxia”)
Shaanxi Chateau Changyu Rena Acquired by
Xianyang, Xianyang,
RMB20,000,000 Manufacturing 100 establishment or
Co., Ltd. (“Chateau Chang’an”) Shaanxi, China Shaanxi, China investment
Yantai Changyu Wine Research,
Develop ment, and Yantai, Yantai, Acquired by
Shandong, Shandong, establishment or
Manufacturing Co., Ltd. (“R&D RMB500,000,000 China China
Manufacturing 100
investment
Centre”)
Changyu (Huanren) Wine Co., Acquired by
Ben xi, Ben xi,
RMB5,000,000 establishment or
Ltd. (“Huanren Wine”) Liaoning, China Liaoning, China Manufacturing 100
investment
Xin jiang Changyu Sales Co., Acquired by
Shihezi, Shihezi,
Ltd. (“Xinjiang Sales”) RMB10,000,000 Xinjiang, China Xinjiang, China Sales 100 establishment or
investment
Ning xia Changyu Trading Co., Acquired by
Yinchuan, Yinchuan,
RMB1,000,000 Ningxia, China Ningxia, China Sales 100 establishment or
Ltd. (“Ningxia Trading”) investment
Shaanxi Changyu Rena Wine Acquired by
Xianyang, Xianyang,
Sales Co., Ltd. (“Shaanxi RMB3,000,000 Sales 100 establishment or
Shaanxi, China Shaanxi, China investment
Sales”)
Penglai Changyu Wine Sales Penglai, Penglai, Acquired by
RMB5,000,000 Shandong, Shandong, Sales 100 establishment or
Co., Ltd. (“Penglai Wine”) China China investment
Laizhou Changyu Wine Sales Laizhou, Laizhou, Acquired by
RMB1,000,000 Shandong, Shandong, Sales 100 establishment or
Co., Ltd. (“Laizhou Sales”) China China investment
FrancsChampsParticipationsSA Acquired by
Investment and
EUR32,000,000 Cognac, France Cognac, France trading 100 establishment or
S (“Francs Champs”) investment
Yantai Roullet Fransac Wine Yantai, Yantai, Acquired by
Sales Co., Ltd. (“Yantai Roullet RMB1,000,000 Shandong, Shandong, Sales 100 establishment or
Fransac”) China China investment
Yantai Changyu Wine Sales Co., Yantai, Yantai, Acquired by
RMB5,000,000 Shandong, Shandong, Sales 100 establishment or
Ltd. (“Wine Sales Company”) China China investment
Shaanxi Chateau Changyu Rena Acquired by
Xian xin, Xian xin,
Tourism Co., Ltd. (“Chateau RMB1,000,000 Tourism 100 establishment or
Shaanxi, China Shaanxi, China investment
Tourism”)
Longkou Changyu Wine Sales Yantai, Yantai, Acquired by
RMB1,000,000 Shandong, Shandong, Sales 100 establishment or
Co., Ltd. (“Longkou Sales”) China China investment
Yantai Changyu Cultural
Tourism Develop ment Co., Ltd. Yantai, Yantai, Acquired by
Shandong, Shandong, establishment or
(“Changyu Cultural Tourism RMB10,000,000 China China
Tourism 100
investment
Company”)
Yantai Changyu Wine Culture Yantai, Yantai, Acquired by
RMB500,000 Shandong, Shandong, Tourism 100 establishment or
Museum Co., Ltd. (“Museum”) China China investment
Yantai Changyu Cultural Yantai, Yantai,
RMB5,000,000 Tourism 100 Acquired by
Tourism Product Sales Co., Ltd. Shandong, Shandong, establishment or
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Principal Proportion of
Registration Business
Name of subsidiary Registered capital business shareholding Acquisition mode
place nature
location Direct Indirect
(“Cultural Sales”) China China investment
Yantai Changyu Window of Yantai, Yantai, Acquired by
International Wine City Co. Ltd. RMB60,000,000 Shandong, Shandong, Tourism 100 establishment or
(“Window of Wine City”) China China investment
Yantai Chateau Koya Brandy Yantai, Yantai, Acquired by
RMB10,000,000 Shandong, Shandong, Manufacturing 100 establishment or
Co., Ltd. (“Chateau Koya”) China China investment
Changyu (Shanghai)
International Digital Marketing Acquired by
Hongkou, Hongkou,
establishment or
Center Co., Ltd. (“Dig ital RMB50,000,000 Shanghai, China Shanghai, China Sales 100
investment
Marketing”)
Shanghai Changyu Guoqu Acquired by
Hongkou, Hongkou,
Dig ital Technology Co., Ltd. RMB6,000,000 Shanghai, China Shanghai, China Sales 51 establishment or
(“Shanghai Guoqu”) investment
Tianjin Changyu Yixin Dig ital Binhai New Binhai New Acquired by
Technology Co., Ltd. (“Tianjin RMB10,000,000 Area, Tianjin, Area, Tianjin, Sales 51 establishment or
Yixin”) China China investment
Shanghai Changyu Yixin Dig ital Acquired by
Hongkou, Hongkou,
Technology Co., Ltd. RMB10,000,000 Shanghai, China Shanghai, China Sales 51 establishment or
(“Shanghai Yixin”) investment
Yantai Christon Catering Co., Yantai, Yantai, Acquired by
RMB1,000,000 Shandong, Shandong, Services 100 establishment or
Ltd. (“Christon Catering”) China China investment
Weimeisi (Shanghai) Enterprise Acquired by
Develop ment Co., Ltd. RMB10,000,000 Shanghai, China Shanghai, China Sales 100 establishment or
(“Weimeisi Shanghai”) investment
Ning xia Longyu Food Trading Acquired by
Yinchuan, Yinchuan,
Co., Ltd. (Longyu Trading) RMB 500,000 Ningxia, China Ningxia, China Sales 100 establishment or
investment
Explanation for difference between the proportion of shareholding and proportion of voting power
in the subsidiaries:
(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.
10.1.2 Important non-wholly-owned subsidiaries
Unit: yuan
Name of subsidiary Shareholding Profit/loss Other Dividend declared Balance of minority
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
proportion of attributable to comprehensive to equity at the end of
minority minority income attributable be distributed to period
shareholders shareholders in this to minority minority
period shareholders in this shareholders in
period this period
AFIP 8.47% 56,409,393
Indomita Wine 15% -79,261 -820,870 56,461,307
Explanation for difference between the proportion of shareholding and proportion of voting power
of the minority shareholders in the subsidiaries: See details in Note 10.1.1.
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10.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: yuan
Ending balance Beginning balance
Name of subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
AFIP 264,108,834 378,244,258 642,353,092 23,725,057 3,826,256 27,551,313 268,602,777 384,948,572 653,551,349 26,013,757 3,603,886 29,617,643
Indomita Wine 223,976,385 314,053,165 538,029,550 144,464,755 9,598,445 154,063,200 252,718,459 314,112,626 566,831,085 167,265,413 9,598,445 176,863,858
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Name of subsidiary Operating Total comprehensive Total comprehensive
Net profit Operating cash flow Operating income Net profit Operating cash flow
income income income
AFIP 59,439,003 -4,006,527 -4,006,527 11,629,017 116,672,300.80 6,010,906 6,010,906 7,318,097
Indomita Wine 80,158,645 -528,407 -6,000,876 14,619,452 76,726,600 -5,893,708 893,680 13,656,192
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10.2 Transactions where share of owner’s equities in a subsidiary changes and the subsidiary
is still controlled
10.2.1 Explanation of changes in share of owner’s equities in a subsidiary
This Company has acquired 1.5% of the minority shareholders’ equity in the subsidiary Australia
Kilikanoon Estate in this period, with a transfer price of 1,883,538 yuan. After the completion of
acquisition, this Company holds 99% equity in Australia Kilikanoon Estate.
10.2.2 Impact of transactions on minority equity and owner’s equities attributable to the
parent company
Items Australia Kilikanoon Estate
Acquirement cost/disposal consideration
-- Cash 1,883,538
-- Fair value of non-cash assets
Total acquirement cost/disposal consideration 1,883,538
Minus: Net asset share of subsidiaries calculated based on the
1,102,655
proportion of equity acquirement/disposal
Difference 780,883
Including: Adjustment of capital reserves 780,883
Adjustment of surplus reserves
Adjustment of undistributed profits
10.3 Equity in joint ventures or associates
Summary financial information of unimportant joint ventures and associates
Unit: yuan
Ending balance / amount incurred Beginning balance / amount incurred
in this period in prior period
Joint ventures: -- --
Total book value of investment 35,144,523 37,018,893
Total of the following items calculated
according to the shareholding ratio
-- Net profit -1,874,370 -1,124,340
-- Other comprehensive income
-- Total comprehensive income -1,874,370 -1,124,340
Associates:
Total book value of investment 1,209,005 1,266,727
Total of the following items calculated
according to the shareholding ratio
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
-- Net profit -57,722 191,752
-- Other comprehensive income
-- Total comprehensive income -57,722 191,752
11. 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 analyze 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.
11.1 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, 2024, 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.
In order to minimize 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 e xposure to significant bad
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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 recognized 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, 2024, 28.1% of the Group trade
receivables are due from top five customers (December 31, 2023: 49%). There is no collateral
or other credit enhancement on the balance of the trade receivables of the Group.
11.2 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 realizable marketable
securities and adequate committed lines of funding from major financial institutions to meet its
liquidity requirements in the short and longer term.
11.3 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, 2024, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: yuan
June 30, 2024 December 31, 2023
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 1.75%-2.25% 87,200,000 1.45% - 2.25% 579,200,000
Financial liabilities
- Short-term loans 5.9% - 6.43% -96,609,764 6.83%~7.30% -96,562,141
- Long-term loans (including the
portion due within one year) 3.90% - 5.90% -93,803,175 1.50% - 3.28% -5,860,499
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
June 30, 2024 December 31, 2023
Item
Effective interest rate Amounts Effective interest rate Amounts
- Lease liabilities (including the
portion due within one year) 4.65% -92,215,196 4.65% -105,051,460
Total -195,428,135 371,725,900
Variable rate instruments:
Unit: yuan
June 30, 2024 December 31, 2023
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 0.20% - 1.45% 1,572,455,873 0.20% - 1.61% 1,638,418,696
Financial liabilities
- Short-term loans 1-year LPR-0.005 -100,000,000
- Short-term loans BBSW (3mths)+1.15% -48,654,201 1.81% ~ 2.54% -23,272,320
- Short-term loans 4.35%-5.4% -56,793,558 3.90% ~ 6.95% -145,146,984
- Long-term loans (including the
portion due within one year) 2.00% ~ 7.59% -119,266,812
Total 1,467,008,114 1,250,732,580
(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, 2024, 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 RMB197,175 yuan (2023: RMB 1,453,823 yuan), and net profit by RMB 197,175
yuan (2023: RMB 1,453,823 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 annualized impact on interest expense or income of such a change in interest rates.
11.4 Foreign currency risk
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Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
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, 2024, 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, 2024 December 31, 2023
Item Balance at foreign Balance at RMB Balance at foreign Balance at RMB
currency equivalent currency equivalent
Monetary capital 47,232,240 2,184,951
- USD 480,399 3,423,708 308,229 2,184,232
- EUR 67 513 67 523
- HKD 48,003,527 43,808,019 217 196
Short-term loans 97,102,650 96,562,141
- USD 13,625,000 97,102,650 13,625,000 96,562,141
(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, 2024 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, 2024
USD 4,683,947 4,683,947
EUR -26 -26
HKD -2,190,401 -2,190,401
Total 2,493,520 2,493,520
December 31, 2023
USD 3,539,172 3,539,172
EUR -20 -20
HKD -7 -7
Total 3,539,145 3,539,145
106
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30, 2024
would have had the equal but opposite effect to the amounts shown above, on the basis that all
other variables remained constant.
12. 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, 2024.
13. Related parties and related transactions
13.1 Particulars of the parent company of the Company
Name of parent Registration Registered Proportion of Proportion of voting
Business nature shareholding of the parent powers of the parent
company place capital company in the Company company in the Company
Changyu Group Yantai City Manufacturing industry 50,000,000 49.9% 49.9%
From January to June 2024, there was no fluctuation in the registered capital of the parent company
and its share in equity interest and voting right.
13.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 10.
13.3 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 joint ventures and associates Relationship with the Company
L&M Holdings Joint venture of the Group
Shanghai Yufeng Brand Management Co., Ltd. (“Shanghai Yufeng”) Associates of the Group
Yantai Guolong Wine Industry Co., Ltd. (“Yantai Guolong”) Associates of the Group
13.4 Particulars of other related parties
Relationship between other related parties and the
Name of other related parties
Company
Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) A company controlled by the same parent company
Yantai Zhongya Zhibao Pharmaceutical Co., Ltd. (“Zhongya Zhibao”) Appointment of directors, supervisors and senior
107
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Relationship between other related parties and the
Name of other related parties
Company
executives of the Group
Societe Civile Argricole Du Chateau De Mirefleurs (“French Mirefleurs”) Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”) Subsidiaries of the joint venture
13.5 Related transactions
13.5.1 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 34,253,399 40,209,713
Zhongya Zhibao Purchasing goods 13,392 13,162
French Mirefleurs Purchasing goods 4,472,158
List of selling goods/providing services
Unit: yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
Zhongya Zhibao Purchasing goods 2,424,638 1,929,485
God Horse Packing Purchasing goods 34,593 7,414
Shanghai Yufeng Purchasing goods 950,113 190,498
Yantai Guolong Purchasing goods 12,309,013
The price of transactions between the Group and the related parties are based on the negotiated
price.
13.5.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
13.5.3 Leasing with related parties
The Group as a lessor:
Unit: yuan
108
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Rental income recognized in Rental income recognized in prior
Name of the lessee Type of leased assets
this period period
God Horse Packing Office building and plant 774,705 774,705
Zhongya Zhibao Office building 481,905 295,238
109
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
The Group as a lessee:
Unit: yuan
Rental expenses for
Variable lease payments not
short-term leases and leases
included in the measurement Interest expenses on Right-of-use assets
of low-value assets of Rent paid
of lease liabilities (if lease liabilities assumed increased
simplified treatment (if
applicable)
Name of the lessor Type of leased assets applicable)
Amount Amount Amount Amount
Amount Amount Amount Amount Amount Amount
incurred incurred in incurred incurred
incurred in incurred in incurred in incurred in incurred in incurred in
in this prior in prior in prior
prior period this period prior period this period this period this period
period period period period
Office building, plant,
Changyu Group 7,480,362 7,480,362 490,777 1,103,983
commercial building
110
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
13.5.4 Related guarantee
Nil
13.5.5 Inter-bank borrowing and lending of related parties
Nil
13.5.6 Asset transfer and debt recombination of related parties
Nil
13.5.7 Other related transactions
Unit: yuan
Amount incurred in prior
Related party Item Amount incurred in this period
period
Changyu Group Trademark use fee 7,858,547 11,320,305
The price of transactions between the Group and the related parties are based on the
negotiated price.
13.6 Accounts receivable and payable of the related parties
13.6.1 Accounts receivable
Unit: yuan
Ending balance Beginning balance
Item Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
Zhongya Zhibao 2,008,642 1,920 1,476,262 2,670
receivable
Accounts
Shanghai Yufeng 2,364,318 2,260 2,925,045 5,290
receivable
Prepayment French Mirefleurs 2,115,474 6,642,165
Prepayment LIVERSAN 478,090
13.6.2 Accounts payable
Unit: yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 19,592,101 27,358,723
Accounts payable Zhongya Zhibao 2,066
Liabilities of contracts Yantai Guolong 930,928 14,840,000
Other payable God Horse Packing 400,000
Other payable Changyu Group 7,858,547 27,515,798
Other payable Zhongya Zhibao 1,664,860
111
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
14. Share-based payment
14.1 Overall situation of share-based payment
According to the resolution of 2022 Annual General Meeting of Shareholders held by the
Group on May 26, 2023, and the approved Proposal on 2023 Restricted Stock Incentive Plan
(Draft) of the Company and Its Abstract and Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors to Handle Matters Related to 2023
Restricted Stock Incentive Plan of the Company, and the Proposal on Adjusting Relevant
Matters of 2023 Restricted Stock Incentive Plan and the Proposal on Granting Restricted
Stocks to Incentive Objects of 2023 Restricted Stock Incentive Plan, which were reviewed and
approved at the first 2023 extraordinary board meeting held on June 26, 2023, the Group has
determined June 26, 2023 as the grant date to grant 6,850,000 restricted stocks to 204
incentive objects at a grant price of 15.24 yuan per stock. A total of 203 incentive objects in
this Group actually subscribed for 6,785,559 restricted stocks, with a grant price of 15.24
yuan per stock.
All restricted stocks granted to incentive objects are subject to different lock-up periods,
which are 12 months, 24 months, and 36 months respectively from the completion of grant
registration of restricted stocks granted to incentive objects. The restricted stocks granted to
incentive objects under this incentive plan shall not be transferred, used as collateral, or used
to repay debts during the lock-up period. All restricted stocks granted to incentive objects will
be unlocked in three phases after 12 months from the grant date, with unlocking ratios of
30%, 30%, and 40% for each phase. The corresponding unlocking dates are 1 year, 2 years,
and 3 years from the grant date. The actual unlocking quantity shall be linked to the annual
performance evaluation.
When the performance of this Company meets corresponding conditions, the unlocking ratio
of the above-mentioned restricted stocks for the current period is determined based on the
operating performance of the incentive object’s unit and the value contribution of the
incentive object. If the unlocking conditions stipulated in this plan are not met, the incentive
object shall not unlock restricted stocks in the current period, and the Company shall
repurchase them according to the grant price to incentive object.
The Group held its fourth 2024 extraordinary board meeting on July 22, 2024, and reviewed
and approved the Proposal on Achievement of the First Lifting of Lock-up Period and Lifting
of Lock-up Conditions for Company’s 2023 Restricted Stock Incentive Plan. According to
relevant provisions of Management Measures for Equity Incentives of Listed Companies and
the Company’s 2023 Restricted Stock Incentive Plan (Draft) and 2023 Restricted Stock
Incentive Plan Implementation, Assessment, and Management Measures, the first lifting of
lock-up period and lifting of lock-up conditions for the Company’s 2023 restricted stock
incentive plan have been achieved.
The first lifting period of 2023 restricted stock incentive plan is “from the first trading day 12
months after the completion of grant registration to the last trading day within 24 months
from the completion of grant registration”. The lifting ratio is 30% of the total number of
restricted stocks granted. The grant registration date of restricted stocks under the Company’s
2023 restricted stock incentive plan is July 20, 2023. The first lock-up period expires on July
20, 2024, and a total of 172 incentive objects have been lifted from the lock-up conditions.
The number of restricted stocks that can be lifted is 1,720,495. A total of 425,666 restricted
112
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
stocks are repurchased and cancelled, including 157,790 that no longer meet the conditions of
the Company’s 2023 restricted stock incentive plan, and 267,876 restricted stocks that cannot
be lifted from the first lock-up period due to personal assessment results.
14.2 Equity-settled share-based payments
Unit: yuan
Method for determining the fair value of equity instruments on
Restricted stock: stock price on grant date minus grant price
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 prior estimate
Accumulated amount of equity-settled share-based payments
55,881,950
included in capital reserve
Total amount of expenses recognized as equity-settled
25,146,195
share-based payments in this period
15. Commitment and contingency
15.1 Significant commitment
Unit: yuan
Item Ending balance Beginning balance
Making long-term asset commitments 47,557,140 50,057,140
15.2 Contingency
As of the balance sheet date, the Group didn’t have any contingency to be disclosed.
16. Matters after balance sheet
16.1 Important non-adjusting events
On July 22, 2024, the board of directors of the Company has reviewed and approved the
Proposal on Achievement of the First Lifting of Lock-up Period and Lifting of Lock-up
Conditions for Company’s 2023 Restricted Stock Incentive Plan, as described in Note 14;
and approved the Proposal on Repurchasing and Canceling Some Restricted Stocks in
Company’s 2023 Restricted Stock Incentive Plan and Adjusting Repurchase Price, as
well as Proposal on Changing and Revising the Registered Capital. 425,666 restricted
stocks were repurchased and cancelled. After the restricted stocks granted to the
incentive objects have completed the share registration, the Company implemented the
2023 annual equity distribution. The board of directors has adjusted the repurchase price
of the restricted stocks that have not been lift from 2023 restricted stock incentive plan
according to the provisions of Incentive Plan (Draft). The adjusted repurchase price of
the restricted stocks that have not been lift from 2023 restricted stock incentive plan is
14.74 yuan per share. After the cancellation of the above-mentioned restricted stocks,
the Company will change its registered capital. The total share capital of the Company
will be changed from 692,249,559 shares to 691,823,893 shares, and the registered
113
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
capital will be changed from 692,249,559 yuan to 691,823,893 yuan.
17. Other important matters
Nil
18. Notes on major items in financial statements of the parent company
18.1 Accounts receivable
18.1.1 Disclosed by age
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 1,261,514 5,189,894
1-2 years
2-3 years
More than 3 years
Total 1,261,514 5,189,894
18.1.2 Disclosed by classification of bad debt provision methods
Unit: yuan
Ending balance Beginning balance
Category Book balance Bad-debt provision Book balance Bad-debt provision
Book Book
Proportion value Proportion value
Amount Proportion Amount Amount Proportion Amount
of accrual of accrual
Accounts receivable
with bad-debt
provision accrued on
a single item basis
Accounts receivable
with bad-debt
1,261,514 100% 1,262 0.10% 1,260,252 5,189,894 100% 5,189,894
provision accrued on
a combined basis
Total 1,261,514 100% 1,262 0.10% 1,260,252 5,189,894 100% 5,189,894
Particulars of provision for bad debts accrued in this period:
Unit: yuan
Change amount in this period
Beginning Cancelled
Category Withdrawn or Ending balance
balance Accrued after
transferred back
verification
Accounts receivable
with bad-debt provision
accrued on a single item
basis
Bad-debt provision 1,262 1,262
114
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Change amount in this period
Beginning Cancelled
Category Withdrawn or Ending balance
balance Accrued after
transferred back
verification
accrued on a combined
basis
Total 1,262 1,262
18.1.3 Accounts receivable actually cancelled after verification in this period
Nil
18.1.4 Accounts receivable and contract assets collected by borrower of top 5 units
ranked by ending balance
Unit: yuan
Ending balance of
Proportion in the bad-debts provision
Ending balance of Ending Ending balance of total ending balance of accounts
Unit accounts balance of accounts receivable of accounts receivable and
receivable contract assets and contract assets receivable and impairment
contract assets provision of
contract assets
Zhongya Zhibao 1,261,514 1,261,514 100% 1,262
Total 1,261,514 1,261,514 100% 1,262
18.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
18.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
18.2 Other receivables
Unit: yuan
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 3,447,765
Other receivables 503,677,802 576,949,997
Total 507,125,567 576,949,997
18.2.1 Dividends receivable
Unit: yuan
Item (or the invested unit) Ending balance Beginning balance
Dividends receivable from subsidiaries 3,447,765
115
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Total 3,447,765
18.2.2 Other receivables
18.2.2.1 Particulars of other receivables classified by nature
Unit: yuan
Nature Ending balance Beginning balance
Accounts receivable from subsidiaries 500,598,180 574,127,885
Others 3,079,622 2,822,112
Total 503,677,802 576,949,997
18.2.2.2 Disclosed by age
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 503,573,330 576,845,525
1-2 years
2-3 years
More than 3 years 104,472 104,472
Total 503,677,802 576,949,997
18.2.2.3 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
18.2.2.4 Other accounts receivable actually cancelled after verification in this period
Nil
18.2.2.5 Other accounts receivable collected by borrower of top 5 units ranked by
ending balance
Unit: yuan
Percentage in 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 269,992,741 Within 1 year 53.60%
from subsidiaries
Accounts receivable
Atrio Group 125,570,740 Within 1 year 24.90%
from subsidiaries
Accounts receivable
Kilikanoon Estate 64,747,026 Within 1 year 12.90%
from subsidiaries
Accounts receivable
Digital marketing 17,295,547 Within 1 year 3.40%
from subsidiaries
116
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Percentage in total Ending balance
Unit Nature of fund Ending balance Age ending balance of other of provision for
accounts receivable bad debts
Accounts receivable
Pioneer Wine Industry 14,190,123 Within 1 year 2.80%
from subsidiaries
Total 491,796,177 97.60%
18.2.2.6 Accounts receivable related to governmental subsidy
Nil
18.2.2.7 Other accounts receivable derecognized due to transfer of financial assets
Nil
18.2.2.8 Other accounts receivable transferred and included in assets and liabilities
Nil
18.3 Long-term equity investment
Unit: yuan
Ending balance Beginning balance
Item
Book balance Impairment Book value Book balance Impairment Book value
provision provision
Investment in subsidiaries 7,713,682,308 42,274,055 7,671,408,253 7,690,772,693 42,274,055 7,648,498,638
Investment in associated
enterprises and joint
ventures
Total 7,713,682,308 42,274,055 7,671,408,253 7,690,772,693 42,274,055 7,648,498,638
18.3.1 Investment in subsidiaries
Unit: yuan
Increase and decrease in this period
Beginning Ending
Beginning Provision Ending
balance of Decrease balance of
Invested unit balance (book balance (book
impairment Increase in in
for
Others impairment
value) value)
provision investment investment impairment provision
accrued
Kylin Packaging 23,543,435 367,372 23,910,807
Changyu Chateau 29,273,059 304,959 29,578,018
Pioneer
5,934,696 558,596 6,493,292
International
Ningxia Growing 36,573,247 36,573,247
National Wine 2,000,000 2,000,000
Icewine Valley 63,431,494 244,217 63,675,711
AFIP 588,633,661 244,217 588,877,878
Sales Company 21,259,694 11,091,879 32,351,573
117
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Increase and decrease in this period
Beginning Ending
Beginning Provision Ending
balance of Decrease balance of
Invested unit balance (book balance (book
impairment Increase in in
for
Others impairment
value) value)
provision investment investment impairment provision
accrued
Wine Sales 5,333,190 833,190 6,166,380
Shanghai
1,000,000 1,000,000
Marketing
Beijing Sales 850,000 850,000
Jingyang Wine 900,000 900,000
Ningxia Wine 222,309,388 222,309,388
Ningxia Chateau 453,747,514 284,014 454,031,528
Chateau Tinlot 212,039,586 212,039,586
Shihezi Chateau 812,303,784 284,014 812,587,798
Chang’an
804,197,217 304,959 804,502,176
Chateau
R&D Company 3,290,230,714 1,324,269 3,291,554,983
Huanren Wine 22,200,000 22,200,000
Wine Sales
5,102,210 58,384 5,160,594
Company
Francs Champs 236,025,404 236,025,404
Marques del
227,931,344 5,210,925 227,931,344 5,210,925
Atrio
Indomita Wine 274,248,114 274,248,114
Australia
Kilikanoon 92,212,509 37,063,130 1,883,538 94,096,047 37,063,130
Estate
Digital
1,186,121 186,121 1,372,242
Marketing
Chateau Koya 110,328,128 328,128 110,656,256
Weimeisi
7,910,985 7,910,985
(Shanghai)
hangyu Cultural
Tourism 92,621,574 142,004 92,763,578
Company
Development
861,192 813,002 1,674,194
Zone Trading
Penglai Wine
1,104,339 800,044 1,904,383
Industry
Longkou Sales 1,611,286 1,261,955 2,873,241
Laizhou Sales 84,916 84,916 169,832
Yantai Roullet
244,217 244,217 488,434
Fransac
Museum 265,162 265,162 530,324
Window of Wine
470,134 470,134 940,268
City
118
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Increase and decrease in this period
Beginning Ending
Beginning Provision Ending
balance of Decrease balance of
Invested unit balance (book balance (book
impairment Increase in in
for
Others impairment
value) value)
provision investment investment impairment provision
accrued
AFIP Tourism 162,952 162,952 325,904
Meeting Center 102,210 102,210 204,420
Ningxia Trading 162,952 162,952 325,904
Christon Catering 102,210 102,210 204,420
Total 7,648,498,638 42,274,055 1,883,538 21,026,077 7,671,408,253 42,274,055
18.4 Operating income and operating cost
18.4.1 Details of operating income
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 170,817,834 151,450,042 211,221,867 173,868,643
Others businesses 15,081,702 14,656,896 30,745,229 27,044,675
Total 185,899,536 166,106,938 241,967,096 200,913,318
Including: Income from contracts 184,420,307 164,861,107 240,897,153 200,209,954
Income from house
rents 1,479,229 1,245,831 1,069,943 703,364
18.4.2 Situation of income and cost from contracts
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
- Alcoholic beverage 170,817,834 151,450,042
- Others 13,602,473 13,411,065
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 184,420,307 164,861,107
18.5 Investment income
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Income from long-term equity investment by cost method 164,552,732 178,935,084
Income from long-term equity investment by equity
54,934
method
Investment income from disposal of long-term equity
-29,910,000
investment
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
119
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Amount incurred in this period Amount incurred in prior period
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 164,552,732 149,080,018
19. Supplementary materials
19.1 List of non-current profits/losses in this period
Unit: yuan
Item Amount Remark
Profits/losses on disposal of non-current assets -95,670
Governmental subsidy included in the current profits/losses (excluding those closely related to
the enterprise business and enjoyed in accordance with the unified standard quota or ration of 33,630,640
the state)
Profits/losses on changes of fair value of financial assets and financial liabilities of
non-financial business, and profits/losses from disposal of financial assets and financial
liabilities, excluding effective hedging operations relevant to the normal business of the
Company
Payment for use of funds by non-financial enterprises included in the current profits/losses
Profits/losses on entrusting other people to make investment or manage assets
Profits/losses on external entrusted loans
Asset impairment provision accrued due to force majeure such as natural disaster
Transfer-back of accounts receivable provision for impairment with single impairment test
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
Current net profits/losses on subsidiaries acquired from a business combination under common
control from the beginning to the consolidation date
Profits/losses on exchange of non-monetary assets
Profits/losses on debt restructuring
One-time expenses incurred by enterprises due to the discontinuation of related business
activities, such as expenses for resettling employees, etc
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
One-time confirmation of share-based payment expenses due to cancellation or modification of
equity incentive plan
For cash-settled share-based payment, profits/losses arising from changes in fair value of
employee compensation payable after the exercise date
Profits/losses on fair value changes of investment real estate with fair value mode for follow-up
measurement
120
Yantai Changyu Pioneer Wine Co., Ltd. 2024 Semi-annual Financial Report
Item Amount Remark
Profits generated from transactions with unfair transaction price
Profits/losses on contingencies irrelated to the normal business of the Company
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items 1,166,359
Other profits/losses conforming to the definition of non-recurrent profits/losses
Minus: Influenced amount of income tax 8,371,006
Influenced amount of minority equity 36,823
Total 26,293,500 --
19.2 Return on net assets and earnings per share
Earnings per share
Weighted average
Profit in reporting period Diluted EPS
return on net assets Basic EPS (yuan/Share)
(yuan/Share)）
Net profit attributable to common shareholders of the
Company 2.03% 0.32 0.32
Net profit attributable to common shareholders of the
Company deducting non-recurrent profits/losses 1.79% 0.28 0.28
19.3 Accounting data difference under domestic and foreign accounting standard
19.3.1 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
Ending balance Beginning balance
this period prior period
In accordance with the
Chinese accounting 221,177,382 363,569,436 10,583,533,749 10,841,500,988
standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 221,177,382 363,569,436 10,583,533,749 10,841,500,988
standard
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
August 22, 2024
121
