Jiangsu Yanghe Distillery Co., Ltd.
2020 Annual Report
April 2021
Section I Important Statements, Contents and DefinitionsThe board of directors, board of supervisors, directors, supervisors and senior management of JiangsuYanghe Brewery Co., Ltd. (hereinafter referred to as the Company) hereby guarantee that theinformation presented in this report is free of any false records, misleading statements or materialomissions, and shall individually and together be legally liable for truthfulness, accuracy andcompleteness of its contents.
Mr. Zhang Liandong, responsible person for the Company, Mr. Yin Qiuming, responsible person foraccounting affairs and Mr. Zhao Qike, responsible person for accounting department (accountingsupervisor) have warranted that the financial statements in this report are true, accurate and complete.
All directors attended the board meeting to review this report.
The future plans and some other forward-looking statements mentioned in this report shall not beconsidered as virtual promises of the Company to investors. Investors and people concerned shouldmaintain adequate risk awareness and understand the difference between plans, predictions andpromises. Investors are kindly reminded to pay attention to possible investment risks.
In the annual report, the possible risks in the operation of the Company are described in detail (see
9.Outlook for the future development of the Company in Section IV Performance Discussion andAnalysis). Investors are kindly reminded to pay attention to relevant content.
The profit distribution plan approved by the board of directors: based on total share capital participatingin the dividend on the registration date (excluding the repurchased shares held in the Company'sspecial repurchase securities account) when the profit distribution plan is implemented in the future, acash dividend of CNY 30.00 (tax inclusive) will be distributed for every 10 existing shares held, 0 sharesof bonus shares (tax inclusive), and reserves would not be converted into share capital.
The Company’s Chinese 2020 Annual Report was publicly disclosed on the Shenzhen Stock Exchangeand www.cninfo.com.cn on 29 April 2021. If there are any differences between the English version andthe Chinese one, please refer to the latter.
Contents
Section I Important Statements, Contents and Definitions ...... 2
Section II Company Profile and Key Financial Results ...... 5
Section III Business Profile ...... 9
Section IV Performance Discussion and Analysis ...... 12
Section V Significant Events ...... 36Section VI Changes in Shares and Information about Shareholders ..... 98Section VII Information about Preference Shares ...... 106
Section VIIIInformation about Convertible Bonds ...... 107Section IX Profiles of Directors, Supervisors, Senior Management andEmployees ...... 108
Section X Corporate Governance ...... 121
Section XI Information about Corporate Bond ...... 128
Section XII Financial Report ...... 129
Section XIII Documents Available for Reference ...... 257
Definitions
Term | Reference | Definition |
The Company, This Company, Yanghe | Refer to | Jiangsu Yanghe Distillery Co., Ltd. |
Yanghe Group, Controlling shareholder | Refer to | Jiangsu Yanghe Group Co.,Ltd. |
The current year, In the reporting period | Refer to | 1 Jan. 2020 to 31 Dec. 2020 |
The report | Refer to | 2020 Annual Report |
Yuan, Ten thousand yuan, A hundred million yuan | Refer to | CNY 0.00, CNY 10,000.00,CNY 100,000,000.00 |
The shareholders' meeting, the board of directors, the board of supervisors | Refer to | The shareholders'meeting, the board of directors and the board of supervisors of the Company |
Articles of incorporation | Refer to | Articles of incorporation of Jiangsu Yanghe Distillery Co., Ltd. |
SSE | Refer to | Shenzhen Stock Exchange |
SRC,CSRC | Refer to | China Securities Regulatory Commission |
SAC of Suqian, SASAC of Suqian | Refer to | State-owned Assets Supervision and Administration Commission of Suqian |
Suya Jincheng, Accounting firm | Refer to | Suya Jincheng CPA LLP |
Blue Alliance | Refer to | Jiangsu Blue Alliance Co., Ltd. |
Yanghe Branch of the Company | Refer to | Jiangsu Yanghe Distillery Co., Ltd. Yanghe Branch |
Siyang Branch of the Company | Refer to | Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch |
Shuanggou Distillery | Refer to | Jiangsu Shuanggou Distillery Stock Co.,Ltd. |
Guijiu Company | Refer to | Guizhou Guijiu Co., Ltd. |
Lihuacun Distillery | Refer to | Hubei Lihuacun Distillery Co., Ltd. |
Section II Company Profile and Key Financial Results
1. Corporate information
Stock abbreviation | Yanghe | Stock code | 002304 |
Stock exchange where the shares of the Company are listed | Shenzhen Stock Exchange | ||
Name of the Company in Chinese | 江苏洋河酒厂股份有限公司 | ||
Abbr. of the Company name in Chinese | 洋河股份 | ||
Name of the Company in English (if any) | Jiangsu Yanghe Distillery Co., Ltd. | ||
Abbr. of the Company name in English (if any) | Yanghe | ||
Legal representative | Zhang Liandong | ||
Registered address | No.118 Middle Avenue, Yanghe Town, Suqian City, Jiangsu Province, China | ||
Postal code of registered address | 223800 | ||
Business address | No.118 Middle Avenue, Yanghe Town, Suqian City, Jiangsu Province, China | ||
Postal code of business address | 223800 | ||
Company website | http://www.chinayanghe.com | ||
yanghe002304@vip.163.com |
2. Contact us
Company secretary | Representative for securities affairs | |
Name | Lu Hongzhen | Sun Dali |
Address | No. 18, Fenghui Avenue, Yuhua Economic Development Zone, Nanjing | |
Tel. | 025-52489218 | |
Fax | 025-52489218 | |
yanghe002304@vip.163.com |
3. Information disclosure and place where the annual report is kept
Media designated by the Company for information disclosure | Securities Times, Shanghai Securities Times, China Securities Journal, Securities Daily |
Website designated by CSRC for the publication of the Annual Report | http://www. cninfo.com.cn |
Place where the Annual Report of the Company is kept | Shareholder reading room, the headquarters of the Company, Suqian City, Jiangsu Province |
4. Company registration and alteration
Organization code | 9132000074557990XP |
Changes in main business activities since the Company was listed (if any) | None |
Changes of controlling shareholders of the Company (if any) | None |
5. Other relevant information
Accounting firm engaged by the Company
Name of the accounting firm | Suya Jincheng CPA LLP |
Business address of the accounting firm | 22-23/F., Central International Plaza, No.105-6 North Zhongshan Road, Nanjing. |
Name of accountants for writing signature | Li Laimin, Li Yan |
Sponsors engaged by the Company to continuously perform its supervisory function during thereporting period? Applicable √ N/A?
Financial adviser engaged by the Company to continuously perform its supervisory function during thereporting period? Applicable √ N/A?
6. Key accounting data and financial indicators
Whether the Company performed a retroactive adjustment or restatement of accounting data? Yes √ No
2020 | 2019 | YoY Change | 2018 | |
Operating revenues (CNY) | 21,101,051,131.79 | 23,126,476,885.07 | -8.76% | 24,159,801,994.68 |
Net profits attributable to shareholders of the Company (CNY) | 7,482,228,633.63 | 7,382,822,726.87 | 1.35% | 8,115,189,794.69 |
Net profits attributable to shareholdersof the Company before non-recurring gains and losses (CNY) | 5,652,068,941.98 | 6,555,890,029.81 | -13.79% | 7,369,331,605.77 |
Net cash flows from operating activities (CNY) | 3,978,790,835.80 | 6,797,891,871.41 | -41.47% | 9,056,748,816.28 |
Basic earnings per share (CNY/share) | 4.9843 | 4.8991 | 1.74% | 5.3850 |
Diluted earnings per share (CNY/share) | 4.9843 | 4.8991 | 1.74% | 5.3850 |
Weighted average ROE | 20.20% | 21.21% | -1.01% | 25.95% |
At the end of 2020 | At the end of 2019 | YoY Change | At the end of 2018 | |
Total assets (CNY) | 53,866,259,306.59 | 53,455,037,840.98 | 0.77% | 49,563,767,816.22 |
Net assets attributable to shareholders of the Company (CNY) | 38,484,583,983.54 | 36,508,835,491.47 | 5.41% | 33,644,530,266.23 |
The Company's net profit before or after deducting non-recurring profits and losses in the last threefiscal years is negative, and the audit report of the last year shows that the Company's ability tocontinue operating is uncertain
? Yes √ NoThe net profit before or after deducting non-recurring profits and losses is negative? Yes √ No
7. Differences in accounting data under domestic and overseas
accounting standards
7.1. Differences in the net profits and net assets disclosed in the financial reportsprepared under the international and China accounting standards
? Applicable √ N/A?No such differences duringthisperiod.
7.2. Differences in the net profits and net assets disclosed in the financial reportsprepared under the outbound and China accounting standards
? Applicable √ N/A?No such differences during thisperiod.
8. Key financial results by quarter
Unit: CNY
Q1 | Q2 | Q3 | Q4 | |
Operating revenues | 9,268,167,143.40 | 4,160,338,695.33 | 5,485,125,629.89 | 2,187,419,663.17 |
Net profits attributable to shareholders of the Company | 4,002,168,546.84 | 1,398,695,739.33 | 1,784,839,005.01 | 296,525,342.45 |
Net profits attributable to shareholders of the Company before deductingnon-recurring profits and losses | 3,201,845,555.14 | 1,064,452,695.12 | 1,368,107,888.33 | 17,662,803.39 |
Net cash flows from operating activities | -328,870,647.68 | -2,404,512,251.66 | 2,289,330,408.21 | 4,422,843,326.93 |
Whether there are any material differences between the financial indicators above or their summationsand those which have been disclosed in quarterly or semi-annual reports.? Yes √ No
9. Non-recurring profits and losses
√ Applicable ? N/A
Unit: CNY
Item | 2020 | 2019 | 2018 | Note |
Profit or loss from disposal of non-current assets (including the write-off portion of the impairment provision) | -4,735,638.66 | 13,797,266.00 | 22,203,572.96 |
Item | 2020 | 2019 | 2018 | Note |
Government grants recorded in the profit or loss for the current period (except for the government grants closely related to the business of the Company and given at a fixed amount or quantity in accordance with uniform national standards) | 98,175,595.19 | 85,605,383.19 | 59,870,221.67 | |
Except for effective hedging business related to normal business operations of the Company, investment income from holding financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities, and disposal of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and investment in other debt instruments. | 2,356,818,184.75 | 973,456,912.43 | 56,995,537.28 | |
Impairment provision reversal of the accounts receivables and contract assets on which the impairment test is carried out individually | ||||
Other non-operating income and expenditure except above-mentioned items | -11,429,697.22 | 12,845,147.02 | 27,967,026.98 | |
Other profit and loss items that conform to the definition of non-recurring profits and losses | 818,031.70 | 1,670,388.78 | 827,837,138.81 | |
Less: Corporate income tax | 609,395,883.18 | 260,122,467.95 | 248,875,376.58 | |
Minority interests (after tax) | 90,900.93 | 319,932.41 | 139,932.20 | |
Total | 1,830,159,691.65 | 826,932,697.06 | 745,858,188.92 | -- |
Explain the reasons if the Company classifies an item as a non-recurring profit and loss according tothe definition in the Explanatory Announcement No. 1 on Information Disclosure for Listed Companies -Non-recurring Profits and Losses, or classifies any non-recurring profit or loss item mentioned in theexplanatory announcement as a recurring profit or loss item.? Applicable √ N/A?No such cases for the reporting period.
Section III Business Profile
1. Main business scope in the reporting periodThe Company shall comply with the disclosure requirements of Shenzhen Stock Exchange IndustryInformation Disclosure Guidelines No. 14 -Listed Companies Engaging in Food and LiquorManufacturing Related BusinessesThe Company is mainly engaged in the production and sales of Chinese Baijiu. The production of Baijiuadopts solid-state fermentation. The sales of Baijiu mainly adopt two models, namely distribution andonline direct selling. During the reporting period, the Company's primary business and businessmodelsdid not changed. According to the Guidelines for the Industry Classification of Listed Companies(2012 Revision) issued by CSRC, the Company belongs to C15 Manufacturing industry ofliquor,beverages and refined tea.
The Company is a national large-scale Baijiu production enterprise. Among the enterprises in the Baijiuindustry, the Company is the only one which has two famous Chinese Baijiu, namely Yanghe andShuanggou, two Chinese time-honored brands, and six Chinese well-known trademarks. The leadingproducts of the Company are a series of Baijiu including Dream Blue, Sky Blue, Ocean Blue, Sujiu,Zhenbaofang, Yanghe Daqu, Shuanggou Daqu. They have high brand awareness and reputationthroughout the country.
During the reporting period, the development of liquor industry kept growing in the fierce competition.Premium and sub-premiumliquor both showed significant development advantages. The concentration,branding and premiumisation of the industry continued significantly. According to disclosed Baijiuindustry periodic reports, the Company's operating revenue and profit remained in the third place in theliquor industry.
2. Significant changes in the main assets
2.1 .Significant changes in the main assets
Main assets | Reasons for any significant change |
Cash and cash equivalents | An increase of 68.44% YoY was mainly due to the decrease in cash paid for investment in the current period which led to an increase in the net cash flow generated by investment activities. |
Prepayment | Andecrease of 95.32% YoY was mainly due to lower prepaid advertising expenses at the end of the current period. |
2.2 .Main assets overseas
? Applicable √ N/A
3. Analysis of core competitiveness
The Company has significant advantages in natural environment, quality technology, brand building,marketing network and so on. The Company has formed its unique core competitiveness, which has notchanged during the reporting period.
3.1 Natural environment advantage
The Company is located in Suqian, the capital of Baijiuwith 'three rivers, two lakes and one wetland’. Asone of the three famous wetlands in the world, Suqian enjoys equal popularity with the Scotch whiskyproducing area and the French Cognac producing area. The long history and unique ecologicalenvironment provide a good source of water, soil and air for production for liquor production. Especiallythe microorganism condition is significantly beneficial to production. The Yanghe distillerywas in the Suiand Tang Dynasties, flourished in the Ming and Qing Dynasties. It had been sold in Jianghuai areaduring the period of Yong Zheng of Qing Dynasty. It has a good reputation that 'dainty taste derivedfrom fortune spring and liquor ocean, which makes Yanghe rank first place in Jianghuai area'.Shuanggou alongside Yanghe has been praised as the origin of Chinese natural liquor by domestic andoverseas experts due to the discovery of drunken ape fossils in Xiacaowan.
3.2 Quality advantage
Considering the diversification and individuation of consumption demand, the Company took the lead inbreaking the traditional classification of Baijiu flavor. The Company classifies Baijiubased on taste andemphasizes the value of taste. The Company strengthens the mellowness of Baijiu, puts forward thenew style of the mellow Baijiu quality, and deeply meets core demand of target consumers. It hassuccessfully establishednew craftof mellow Baijiu production andsystem framework of mellownessmechanism, which caters to market consumption. In June 2008, 'Mellowness', a special type of Yanghe,was first written into the national standard in China Protected Geographical Indication Product- YangheDaqu (Standard No. GB/T220406-2008).
3.3 Technologyadvantage
The Company has 39Masters of Chinese Baijiu, 69 provincial Baijiutasting committee members and1854 technicians. The Company also has 10 national and provincial technical research anddevelopment platforms. The obvious advantage of technical talents provides technical support for thecontinuous improvement of mellow Baijiu quality. In the national liquor taster contest sponsored byChinaAlcoholic Drinks Association, the Company is the only one that won three consecutivechampionships among all contestants; In 2020, talents of theCompany won the top 4 in the 4th NationalLiquor Tasting Professional Skills Competition, and the project of "Research and Application of KeyTechnology and Intelligent Production of Mellowness Flavor Brewing" won the first prize of "FoodIndustry Science and Technology Award". It once again showed the Company’s great advantage oftalents and technology.
3.4 Brand advantage
The Company, as one of the eight traditional well-known Baijiu enterprises, is the only one which hastwo famous Chinese Baijiu brands, namely Yanghe and Shuanggou, two Chinese time-honored brands,and six Chinese well-known trademarks, including Yanghe, Shuanggou, Yanghe Spirit Classic,Zhenbaofang, Dream Blue, and Su. The brand value of the Company has been ranked the top 3 in theNational Light Industry List, and has been listed in the "Global Top 500 Most Valuable Brands" and"Top 100 Most Valuable Chinese Brands" for five consecutive years, and ranked the third in the "2020Top 50Global Spirits Brand Value List”.
3.5 Marketing network advantage
The Company has a marketing team with strong executive force. The marketing network haspenetrated into every county and every city throughout the country. High speed channel has beenbasically completed. These laid a solid foundation for market expansion and extension of the categoryin the future. The Company obtained several honors such as model enterprise of industrial Internetdevelopment in Jiangsu province, Jiangsu Provincial Governor Quality Award, and service-orientedmanufacturing enterprise in Jiangsu province. At the same time, as a traditional enterprise, theCompany has also insisted on exploring new marketing mode, and has made some achievements inInternet application innovation.
Section IV Performance Discussion and Analysis
1. Overview
2020 was a key year for the Company to deepen reforms, adjustments andtransformation.Facing the impact of COVID-19 epidemic, complex and ever-changingmacro environment and increasingly fierce industry competition, the Company spared noeffort to cope with difficulties and challenges, thoroughly implemented the overall workstrategy of "12633", focused on epidemic prevention and control on one hand, and onadjustments and transformation on the other hand, and realized the stable developmentin the complex internal and external environment.In 2020, the Company achievedoperating revenue of CNY 21.101 billion and net profit attributable to shareholders of thelisted company of CNY 7.482 billion.First, the Company deepened marketing transformation and accumulated potentialenergy for development. The Company adhered to the problem-oriented thinking,deepened the implementation of transformation ideas, further built a new relationshipbetween Yanghe and distributors with integration strategy, and gradually optimized thedistribution of dealers with the aim of "one main distributor and multiple auxiliarydistributors". The Company implemented the strategy of Twin Famous Baijiu, adjustedthe organizational structure, equipped corresponding resources, and further deepenedthe operation of Shuanggou brand. It continuously improved the market service andmarketing management system, oriented assessment, price control, group purchaseconstruction, digital marketing and other measures. The Company's marketing potentialenergy has been accumulated in the deep transformation and adjustment.
Second, the Company focused on quality breakthroughs and laid a solid foundation fordevelopment. The Company adhered to the strategy that "quality is king", sublimated thenew connotation of "Fine Baijiu" with the consumer-orientation, continuously optimizedthe distilling process, and further enhanced the aroma complex sense of raw liquor. Itfocused on key topics and the Company successfully constructed the mode system of"big base liquor combination", improved the elegance of aroma, mellow taste and comfortafter drinking at multiple levels, made more achievements in a number of scientificresearch projects, and continued to improve the quality of products through joint efforts.The crystal version of Dream Blue was launched gorgeously, and the M6+ completed thenationwide promotion, and won the new liquor product award of "Green Drink Award".
Third, the Company improved brand value and enabled the development of power.Telling the brand story well through multiple channels and organizing cultural activitiessuch as Seal Ceremony and Toupai Baijiu Opening Cellar Festival, presented the beautyof Chinese Baijiu culture inheritance. "Million Space Partner Program" and other activitiesconveyed the strongest cultural message of "there is always Dream Blue for bigfamily/nation events". Public welfare activities such as anti-epidemic, student aid andtargeted poverty alleviation conveyed the brand image of warmth and feelings. TheCompany was awarded the Top 100 Most Valuable Chinese Brands in 2020 and rankedthe third in the Top 50 Global Spirits Brand Value List in 2020. The brand awareness andreputation have been further improved.
Fourth, the company upgraded management and improved the quality of development.The Company focused on improving management, quality and efficiency and promotingtransformation. The 14th Five-Year Plan has been scientifically formulated. Digital
transformation, supply chain management, quality control, investment management,information disclosure, audit management and other work have been upgraded, andmore efforts have been made. The management efficiency has been continuouslyimproved in the process of striving for excellence. The construction of a new digitalmanagement system, packaging production efficiency and market response speedsignificantly improved. Production costs were further reduced and intelligent packagingperformed well. It further improved the logistics support ability of the Company.
Fifth, the Company strengthened cultural construction and condensed synergy fordevelopment. The Company gave full play to the dual advantages of leading Partybuilding and shaping culture, and continued to strengthen Party building work. TheCompany adhered to the political guidance, through the "three lectures and onecomparison" theme education and other activities. The effect of style construction hasbeen shown. More than 80 activities, such as summer camp for Su wine students, andmore than 200 cultural activities such as Mid-Autumn Festival National Day Gala, havebeen carried out to actively build a large ecological circle of corporate humanistic care.The Company adhered to cultural confidence, started the construction of "culturalYanghe", established Yanghe University, Sujiuzhihui and other enterprising learning andgrowth platforms. Post knowledge system construction showed initial results. TheCompany created typical character images to highlight the power of examples. TheCompany has been awarded 53 national and provincial honors, such as "OutstandingContributor of the Hope Project for 30 Years, Craftsman of China Brewing Industry,National Civilized Family, Good Youth of Jiangsu Province, and Jiangsu May DayInnovative Expert". The guiding role is more powerful and the forging ahead is moreprofound.
The Company shall comply with the disclosure requirements of Shenzhen StockExchange Industry Information Disclosure Guidelines No. 14 -Listed CompaniesEngaging in Food and Liquor Manufacturing Related Businesses
Information about brand operationThe Company’s products include Dream Blue, Sujiu, Sky Blue, Zhenbaofang, OceanBlue, Yanghe Daqu, Shuanggou Daqu, Guijiu, Sidus Wine and so on. According to theprice range standard of ex-factory price, the Company divides the products into mid/highend and ordinary products. The mid/high end products refer to those with ex-factory price≥ CNY 100 / 500ml, mainly including Dream Blue, Sujiu, Sky Blue, Zhenbaofang (Difang,Shengfang) and Ocean Blue. Ordinary products refer to those with ex-factory price <CNY 100 / 500ml, mainly including Yanghe Daqu and Shuanggou Daqu.
The revenue of various products is as follows:
Unit:CNY
Products
Products | Operating revenue | |
2020 | YoY change | |
Mid/high end products | 17,647,666,173.96 | -7.15% |
Ordinary products | 2,686,616,269.02 | -14.86% |
Main sales model
The Company adopts the marketing and sales model mainly based on distribution, whichis divided into wholesale distribution and online direct selling, among which wholesaledistribution is the main sales model.
Distribution model? Applicable √ N/A
1. Disclosure of main business composition by different types
Unit:CNY
Types
Types | Operating revenue | YoY change | Operating cost | YoY change | Gross margin | YoY change |
By product | ||||||
Mid/high end products | 17,647,666,173.96 | -7.15% | 3,556,004,734.05 | -7.51% | 79.85% | 0.08% |
Ordinary products | 2,686,616,269.02 | -14.86% | 1,687,531,385.06 | -12.47% | 37.19% | -1.71% |
Subtotal | 20,334,282,442.98 | -8.24% | 5,243,536,119.11 | -9.17% | 74.21% | 0.26% |
By sales model | ||||||
Wholesale distribution | 20,008,281,801.72 | -8.49% | 5,197,737,787.91 | -9.32% | 74.02% | 0.24% |
Online direct selling | 326,000,641.26 | 9.68% | 45,798,331.20 | 11.83% | 85.95% | -0.27% |
Subtotal | 20,334,282,442.98 | -8.24% | 5,243,536,119.11 | -9.17% | 74.21% | 0.26% |
By geographical segment | ||||||
Jiangsu | 9,559,956,587.96 | -7.18% | 2,733,139,743.54 | -9.13% | 71.41% | 0.61% |
Ex-Jiangsu | 10,774,325,855.02 | -9.17% | 2,510,396,375.57 | -9.21% | 76.70% | 0.01% |
Subtotal | 20,334,282,442.98 | -8.24% | 5,243,536,119.11 | -9.17% | 74.21% | 0.26% |
According to the price range standard of ex-factory price, the Company divides theproducts into mid/high end products and ordinary products. The mid/high end productsrefer to those with ex-factory price ≥ CNY 100 / 500ml. Ordinary products refer to thosewith ex-factory price <CNY 100 / 500ml.
2. Disclose the number of distributors according to regional classification
Geographical segment | Distributor number at the end of the reporting period | Increase number during the reporting period | Decrease number during the reporting period |
Jiangsu | 3116 | 227 | 413 |
Ex-Jiangsu | 5935 | 976 | 1887 |
Total | 9051 | 1203 | 2300 |
Since 2019, the Company has carried out marketing adjustment and transformation with"one main distributor and multiple auxiliary distributors". It has built a distributing networkaround the guiding ideology of complementary and coordinated development. As a result,the number of distributors decreased.
3. Settlement method and distribution method
The Company mainly adopts the bank transfer method for settlement, and adopts themethod of payment before goods for product sales.
4. Sales amount and sales proportion of the top five distributors
In 2020, the total sales amount of the top five distributors was CNY 973.1852 million,accounting for 4.61% of the total sales of this year. Among the sales of the top fivedistributors, the sales from related parties were CNY 0, accounting for 0% of the totalsales of this year. The total amount of receivables of the top five distributors at the end ofthe period were CNY 0.
Store sales terminals accounted for more than 10%? Applicable √ N/A
Online direct selling? Applicable √ N/A
Unit:CNY
Online direct selling
Online direct selling | Sales amount in 2020 | Sales amount in 2019 | YoY change |
T-mall, JD.COM and other platforms | 326,000,641.26 | 297,224,498.99 | 9.68% |
The sales price of the main products accounting for more than 10% of the total operatingrevenue of the current period changed by more than 30% compared with the previousreporting period? Applicable √ N/A
Procurement mode and content
Unit:CNY
Procurement mode | Procurement content | Amount |
Market bidding | Distilling raw materials and packaging materials | 3,912,774,029.08 |
Marketing purchase | Energy | 293,209,174.11 |
Procurement of raw materials from cooperatives or farmers accounted for more than 30%of the total purchase amount? Applicable √ N/A
The price of major outsourced raw materials changed by over 30% year on year? Applicable √ N/A
Main production modeThe Company's production mode is self-produced mode, the main links including rawmaterial crushing, fermentation, distillation, grade storage, liquor body design andcombination, product packaging.
Commissioned production? Applicable √ N/A
The main components of operating costs
Unit:CNY
Types | Cost item | 2020 | 2019 | YoY change | ||
Amount | As a | Amount | As a |
percentageof operatingcost
percentage of operating cost | percentage of operating cost | |||||
Baijiu | Direct materials | 3,735,886,638.99 | 63.84% | 4,159,654,057.94 | 62.77% | -10.19% |
Direct labor | 900,387,427.26 | 15.39% | 902,420,369.83 | 13.62% | -0.23% | |
Fuels and energy | 211,348,204.70 | 3.61% | 225,184,624.70 | 3.40% | -6.14% | |
Manufacturing overhead | 297,087,576.41 | 5.08% | 356,239,324.36 | 5.38% | -16.60% |
Output and inventory
1. Production volume, sales volume and inventory of major products
Types | Item | Unit | 2020 | 2019 | YoY change |
Baijiu | Sales | ton | 155,757.37 | 186,022.52 | -16.27% |
Production | ton | 161,498.22 | 179,315.33 | -9.94% | |
Inventory | ton | 23,897.60 | 18,156.75 | 31.62% |
2. Inventory of finished and semi-finished Baijiu at the end of the period
Unit: ton
Inventory of finished Baijiu | Inventory of semi-finished Baijiu (including raw liquor) |
24,324.62 | 609,146.56 |
3. Capacity of the Company
Unit: ton
Name of production entity | Design capacity | Actual capacity in 2020 |
Yanghe (including Yanghe branch and siyang branch) | 222,545 | 122,366 |
Shuanggou Distillery | 97,040 | 38,127 |
2. Analysis of main business
2.1. Overview
Same with the contents presented in “1.Overview” of this section.
2.2. Revenues and cost of sales
2.2.1. Breakdown of operating revenues
Unit:CNY
2020 | 2019 | YoY change | |||
Amount | As a percentage of operating revenues | Amount | As a percentage of operating revenues | ||
Total | 21,101,051,131.79 | 100% | 23,126,476,885.07 | 100% | -8.76% |
By business segment | |||||
Liquor | 20,334,282,442.98 | 96.37% | 22,161,278,307.05 | 95.83% | -8.24% |
Others | 766,768,688.81 | 3.63% | 965,198,578.02 | 4.17% | -20.56% |
By product | |||||
Baijiu | 20,152,435,029.41 | 95.51% | 21,967,044,396.58 | 94.99% | -8.26% |
Wine | 181,847,413.57 | 0.86% | 194,233,910.47 | 0.84% | -6.38% |
Others | 766,768,688.81 | 3.63% | 965,198,578.02 | 4.17% | -20.56% |
By geographical segment
By geographical segment | |||||
Jiangsu | 9,990,396,422.72 | 47.35% | 11,011,399,137.52 | 47.61% | -9.27% |
Ex-Jiangsu | 11,110,654,709.07 | 52.65% | 12,115,077,747.55 | 52.39% | -8.29% |
2.2.2. Business segment, products or geographical segmentscontributing over 10% of the operating revenues or profits
√ Applicable ? N/A
Unit:CNY
Operating revenues | Cost of sales | Gross profit margin | YoY change of operating revenue | YoY change of cost of sales | YoY change of gross profit margin | |
By business segment | ||||||
Liquor | 20,334,282,442.98 | 5,243,536,119.11 | 74.21% | -8.24% | -9.17% | 0.26% |
By product | ||||||
Baijiu | 20,152,435,029.41 | 5,144,709,847.36 | 74.47% | -8.26% | -8.84% | 0.16% |
By geographical segment | ||||||
Jiangsu | 9,559,956,587.96 | 2,733,139,743.54 | 71.41% | -7.18% | -9.13% | 0.61% |
Ex-Jiangsu | 10,774,325,855.02 | 2,510,396,375.57 | 76.70% | -9.17% | -9.21% | 0.01% |
Under the circumstances that the statistical standards for the Company’s main businessdata adjusted in the reporting period, the Company’s main business data in the currentone year is calculated based on adjusted statistical standards at the end of the reportingperiod.? Applicable √ N/A
2.2.3. Whether revenue from physical sales is higher than servicerevenue
√ Yes □ No
By business segment | Item | Unit | 2020 | 2019 | YoY change |
Baijiu | Sales volume | ton | 155,757.37 | 186,022.52 | -16.27% |
Production volume | ton | 161,498.22 | 179,315.33 | -9.94% | |
Inventory volume | ton | 23,897.60 | 18,156.75 | 31.62% | |
Wine | Sales volume | ton | 3,202.27 | 4,854.36 | -34.03% |
Production volume | ton | 2,985.04 | 4,137.99 | -27.86% | |
Inventory volume | ton | 427.02 | 644.25 | -33.72% |
Reasons for any over 30% YoY changes in the data above.
√ Applicable ? N/A
The increase of 31.62% YoY in inventoryvolume of Baijiu was mainly due to stock forSpring Festival sales season.The decrease of 34.03% YoY in sales volume of wine was mainly due to the epidemicand the Company's product sales model. The Company's wine sales declined in thisreporting period, resulting in a corresponding decline in wine sales volume.The decrease of 33.72% YoY in inventory volume of wine was mainly due to clearing anddigesting inventory in this reporting period.
2.2.4. Execution of significant sales contracts in the reporting period
? Applicable √ N/A
2.2.5. Breakdown of cost of sales
By business and product segment
Unit:CNY
Bybusinesssegment
By business segment | Item | 2020 | 2019 | YoY change | ||
Amount | As a percentage of cost of sales | Amount | As a percentage of cost of sales | |||
Liquor | 5,243,536,119.11 | 89.60% | 5,772,779,588.18 | 87.12% | -9.17% |
Unit:CNY
By product segment | Item | 2020 | 2019 | YoY Change | ||
Amount | As a percentage of cost of sales | Amount | As a percentage of cost of sales | |||
Liquor | Direct materials | 3,831,187,362.53 | 65.47% | 4,284,348,458.13 | 64.66% | -10.58% |
Liquor | Direct labor | 902,098,885.05 | 15.42% | 904,555,426.95 | 13.65% | -0.27% |
Liquor | Fuels and energy | 212,167,471.34 | 3.63% | 226,377,369.91 | 3.42% | -6.28% |
Liquor | Manufacturing overhead | 298,082,400.19 | 5.09% | 357,498,333.19 | 5.40% | -16.62% |
Note: Nil
2.2.6. Changes in the scope of the consolidated financial statements forthe reporting period
√ Yes ? No
1. Establishment of subsidiaries
Su Wine Group Co.,Ltd. ,the Company’s holding subsidiary,invested CNY 2 million toestablishJiangsu Yanghe Painting and Calligraphy Academy. On 6 July 2020, theRegistration Certificate of Private Non-Enterprise Unit (Legal Person) issued by the CivilAffairs Department of Jiangsu Province was obtained. It was included in the consolidatedfinancial statements from July 2020.
2. Cancellation of subsidiaries
(1) Huaian Huaqu Wine Development Co.,Ltd., Jiangsu Huaqu Wine Group NanjingCo.,Ltd., Taizhou Huaqu Wine Development Co.,Ltd.,Guizhou Guijiu Package Co.,Ltd.,the holding subsidiaries, were liquidated and terminated onJanuary 2020.FromFebruary2020, theyare no longer included in the consolidated scope of the consolidated financialstatements.
(2) Jiangsu Huaqu Wine Group Suzhou Co., Ltd., Jiangsu Huaqu Wine Group YanchengCo., Ltd., the holding subsidiaries, were liquidated and terminatedonMarch 2020.FromApril 2020, theyare no longer included in the consolidated scope of the consolidatedfinancial statements.
(3) Jiangsu Huaqu Wine Group Nantong Co., Ltd., Jiangsu Huaqu Wine Group Wuxi Co.,Ltd., the holding subsidiaries, were liquidated and terminated on April 2020. From May2020, they are no longer included in the consolidated scope of the consolidated financialstatements.
2.2.7. Major changes in the business, products or services in thereporting period
? Applicable √ N/A
2.2.8. Main customers and suppliers
Sales to major customers of the Company
Total sales from top five customers(CNY)
Total sales from top five customers(CNY) | 973,185,221.90 |
Total sales from top five customers as a percentage of the total sales | 4.61% |
Total sales from related parties among top five customers as a percentage of the total sales | 0.00% |
Information on top five customers
No. | Customer | Sales amount(CNY) | As a percentage of the total sales for the year |
1 | Customer A | 250,020,588.88 | 1.18% |
2 | Customer B | 226,028,249.31 | 1.07% |
3 | Customer C | 219,523,255.31 | 1.04% |
4 | Customer D | 139,377,749.01 | 0.66% |
5 | Customer E | 138,235,379.39 | 0.66% |
Total | -- | 973,185,221.90 | 4.61% |
Other information on major customers? Applicable √ N/AMajor suppliers of the Company
Total purchasefrom top five suppliers(CNY) | 1,046,394,506.36 |
Total purchasefrom top five suppliers as a percentage of the total sales | 20.47% |
Total purchasefrom related parties among top five suppliers as a percentage of the total purchase | 0.00% |
Information on top five suppliers
No. | Supplier | Purchases(CNY) | As a percentage of the total purchase for the year |
1 | Supplier A | 289,002,139.70 | 5.65% |
2 | Supplier B | 225,020,586.44 | 4.40% |
3 | Supplier C | 211,926,877.93 | 4.15% |
4 | Supplier D | 164,202,585.50 | 3.21% |
5 | Supplier E | 156,242,316.79 | 3.06% |
Total | -- | 1,046,394,506.36 | 20.47% |
Other information on major suppliers? Applicable √ N/A
2.3. Expense
Unit:CNY
2020 | 2019 | YoY change | Reason for any significant change | |
Selling and distribution expenses | 2,603,804,157.78 | 2,691,711,170.59 | -3.27% | |
General and administrative expenses | 1,729,080,201.93 | 1,856,491,727.00 | -6.86% | |
Finance expenses | -87,234,764.39 | -78,426,551.41 | -11.23% | |
R&D expenses | 260,094,291.03 | 159,965,593.88 | 62.59% | During this period, the R&D investment of raw liquor production base increased, so the amount of R&D expense increased accordingly |
The Company shall comply with the disclosure requirements of Shenzhen StockExchange Industry Information Disclosure Guidelines No. 14 - Listed CompaniesEngaging in Food and Liquor Manufacturing Related Businesses
(1) The composition of selling and distribution expenses
Unit: CNY 10,000
Item | Current period amount | As a percentage of selling and distribution expenses | Previous period amount | As a percentage of selling and distribution expenses | YoY change |
Advertising and promotion expense | 141,109.00 | 54.19% | 156,690.39 | 58.21% | -9.94% |
Payroll | 64,627.10 | 24.82% | 50,283.64 | 18.68% | 28.53% |
Cargo charge | 518.50 | 0.20% | 1,032.70 | 0.38% | -49.79% |
Labor expense | 11,797.59 | 4.53% | 15,623.91 | 5.80% | -24.49% |
Travel expense | 35,343.47 | 13.57% | 36,573.51 | 13.59% | -3.36% |
Business entertainment | 162.81 | 0.06% | 380.98 | 0.14% | -57.27% |
Other expense | 6,821.95 | 2.62% | 8,585.99 | 3.19% | -20.55% |
Total | 260,380.42 | 100.00% | 269,171.12 | 100.00% | -3.27% |
(2) The composition of advertising expense
Unit: CNY 10,000
Item | Current period amount | As a percentage of advertising expenses |
National advertising expense | 89,074.58 | 87.32% |
Regional advertising expense | 12,937.74 | 12.68% |
Total | 102,012.32 | 100.00% |
2.4. R&D input
√ Applicable ? N/A
The Company seeksstable improvement and lays a solid quality foundation. It makesmore efforts from "brewing, selecting, storing and using good liquor" to build a newcombination system of large base liquor, to enrich the resources of multiple types ofcharacteristic liquor, and to realize the transformation of the structure of raw liquor and
base liquor from characteristics to advantages, and continuously to consolidate theguarantee force of quality Yanghe resources.
The Company seeks stable breakthrough and empowers scientific and technologicalinnovation.Through in-depth basic theoretical research, analysis of mellownessmechanism, exploration of health function factors and health experience factors,outstanding results have been achieved, and the quality connotation of mellowness hasbeen enriched.The dynamic model of solid state fermentation with the highest qualitymatching degree and the micro-ecological regulation method of pit and pond wereestablished. The brewing process of raw liquor was more controllable, and theimprovement effect of raw liquor quality was continuously highlighted.
The Company seeks new changes with stability to lead intelligent brewing. It adheres tothetransformation "from traditional industrial technology to digital and intelligent" as agoal.The Company deeply applies MES system, and achieves a number of brewing coretechnology breakthroughs. Jiangsu Province intelligent manufacturing demonstrationplant construction projectwas approved.
The Company seeks quality improvement with stability.Product innovation alsoachievesnew breakthroughs.Based on characteristics of Yanghe and Shuanggou, thecomfort, satisfaction and ease of the liquor body are regarded as an evaluation criteria forquality improvement to realize a systematic solidification of flavor characteristics of awhole series of products. The Company successfully creates crystal version of DreamBlue, and forms the product characteristics of "brightness, mellowness, super value andsuper volume". It bringsan experience of "outside temperament and inside quality of goodBaijiu" to the consumer market.
Information about R&D input
2020 | 2019 | YoY change | |
Number of R&D personnel | 549 | 396 | 38.64% |
R&D personnel as a percentage in total employees | 3.47% | 2.51% | 0.96% |
R&D input(CNY) | 269,360,145.63 | 166,917,025.32 | 61.37% |
R&D input as a percentage in operating revenues | 1.28% | 0.72% | 0.56% |
Capitalized R&D input(CNY) | 9,265,854.60 | 6,951,431.44 | 33.29% |
Capitalized R&D input percentage in total R&D input | 3.44% | 4.16% | -0.72% |
Reasons for any significant YoY change in the ratio of the R&D input to the operatingrevenues.? Applicable √ N/A
Reasons for any sharp variation in the capitalization rate of R&D input and statement ofits rationale.? Applicable √ N/A
2.5. Cash flows
Unit:CNY
Item
Item | 2020 | 2019 | YoY change |
Subtotal of cash inflows from operating activities | 21,900,973,449.03 | 28,418,153,682.08 | -22.93% |
Subtotal of cash outflows from operating activities | 17,922,182,613.23 | 21,620,261,810.67 | -17.10% |
Net cash flows from operating activities | 3,978,790,835.80 | 6,797,891,871.41 | -41.47% |
Subtotal of cash inflows from investing activities | 30,896,999,982.51 | 40,698,105,842.28 | -24.08% |
Subtotal of cash outflows from investing activities | 26,424,165,197.95 | 41,991,320,976.18 | -37.07% |
Net cash flows from investing activities | 4,472,834,784.56 | -1,293,215,133.90 | 445.87% |
Subtotal of cash outflows from financing activities | 5,504,913,990.79 | 4,823,150,583.00 | 14.14% |
Net cash flows from financing activities | -5,504,913,990.79 | -4,823,150,583.00 | -14.14% |
Net increase in cash and cash equivalents | 2,943,041,513.62 | 684,796,540.70 | 329.77% |
Explanation of why the data above varied significantly.
√ Applicable □ N/A
(1)The decrease of 41.47% YoY of net cash flows from operating activities was mainlydue to the decline of revenue in this periodthe increase, leading tothe decrease in cashinflow from operating activities more than the decrease in cash outflow from operatingactivities.It resulted in an decrease in net cash flow from current operating activities.
(2) The increase of 445.87% YoY of net cash flows from investing activities was mainlydue to a large decrease of purchasing financial products in this period, leading to thedecrease in cash outflow from investing activities more than the decrease in cash inflowfrom investing activities. It resulted in an increase in net cash flow from current investingactivities.
(3) The increase of 329.77% YoY of net increase in cash and cash equivalent was mainlydue to a large decrease of purchasing wealth management products in this period,leading to an increase in net cash flow from current investing activities. It resulted in anincrease in net increase in cash and cash equivalent in this period.
Main reasons for the material difference between net cash flows from operating activitiesduring the reporting period and net profit for the year.? Applicable √ N/A
3. Analysis of non-corebusiness
√ Applicable ? N/A
Unit:CNY
Amount | As a percentage of total profits | Reasons | Sustainability |
Investmentincome
Investment income | 1,206,683,362.49 | 12.21% | Mainly due to the investment income generated by finance management and equity investment | No |
Changes in fair value | 1,267,682,598.52 | 12.83% | Mainly due to changes in fair value of financial assets held for trading | No |
Asset impairment | -6,196,876.85 | -0.06% | Mainly due to provision for stock obsolescence | No |
Non-operating income | 25,039,870.29 | 0.25% | Mainly due to donation acceptance, compensation and liquidated damages income | No |
Non-operating expenses | 41,325,490.38 | 0.42% | Mainly due to donation expenses and losses from retirement of fixed assets | No |
4. Analysis of assets and liabilities
4.1 Significantchanges of asset items
The Company implemented the new revenue standards or new leasing standards for thefirst time since 2020, and adjusted opening balance of related items in financial reportsdue to the first implementation.Applicable
Unit:CNY
As at the end of 2020 | As at the beginning of 2020 | Change in percentage | Explanation about any significant changes | |||
Amount | As a percentage of total assets | Amount | As a percentage of total assets | |||
Cash and cash equivalents | 7,243,186,362.29 | 13.45% | 4,300,144,848.67 | 8.04% | 5.41% | |
Accounts receivable | 4,225,230.90 | 0.01% | 16,080,618.65 | 0.03% | -0.02% | |
Inventories | 14,852,694,146.30 | 27.57% | 14,433,244,696.27 | 27.00% | 0.57% | |
Long-term equity investments | 29,528,377.16 | 0.05% | 25,361,651.38 | 0.05% | ||
Fixed assets | 6,882,953,634.34 | 12.78% | 7,256,557,503.85 | 13.58% | -0.80% | |
Construction in progress | 223,468,482.24 | 0.41% | 263,153,505.12 | 0.49% | -0.08% | |
Long-term borrowings | 36,360.00 | 72,723.00 | ||||
Financial assets held for trading | 14,301,978,905.17 | 26.55% | 17,976,767,209.45 | 33.63% | -7.08% | |
Other non-current financial assets | 6,366,958,225.81 | 11.82% | 5,050,851,671.16 | 9.45% | 2.37% |
4.2 Assets and liabilities measured at fair value
√Applicable □ N/A
Unit:CNY
Item
Item | Opening balance | Changes in fair value recognized in profit or loss | Changes in the cumulative fair value recorded into equity | Provision for impairment | Amount of purchase | Amount of sale | Other changes | Closing balance |
Financial Assets | ||||||||
1. Financial assets held for trading(excluding derivative financial assets) | 23,027,618,880.61 | 1,267,682,598.52 | 26,071,060,798.23 | 29,697,175,266.30 | -249,880.08 | 20,668,937,130.98 | ||
Total | 23,027,618,880.61 | 1,267,682,598.52 | 26,071,060,798.23 | 29,697,175,266.30 | -249,880.08 | 20,668,937,130.98 | ||
Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other changesWhether measurement attribution of main assets changed significantly during this period.?Yes √ No
4.3 Restricted asset rights as of the end of this reporting period
No
5. Investment
5.1. Total investment
√ Applicable ? N/A
Investment made in the reporting period(CNY) | Investment made in the prior year(CNY) | YoY change |
2,204,658,425.17 | 2,169,877,269.95 | 1.60% |
5.2. Significant equity investment made in the reporting period? Applicable √ N/A
5.3. Significant non-equity investment ongoing in the reporting period
? Applicable √ N/A
5.4.Investment in financial assets
(1) Securities investment
√Applicable ? N/A
Unit:CNY
Category ofsecurities
Category of securities | Stock code | Abbr. of securities | Initial investment cost | Accounting measurement model | Opening balance | Changes in fair value recognized in profit or loss | Changes in the cumulative fair value recorded into equity | Amount of purchase | Amount of sale | Profit and loss during the reporting period | Closing balance | Accounting subject | Capital source |
Domestic and foreign stocks | 601696 | BOCI Securities | 300,000,000.00 | Fair value | 402,516,510.70 | 1,345,694,006.29 | 1,348,062,427.33 | 1,748,210,516.99 | Other non-current financial assets | Owned Fund | |||
Trust | Nil | Avic Trust-Apocalypse No.328 Tianji Jufu | 1,000,000,000.00 | Fair value | 1,000,000,000.00 | 1,000,000,000.00 | Financial assets held for trading | Owned Fund | |||||
Trust | Nil | MinSheng Trust- Zhongmin | 600,000,000.00 | Fair value | 784,109.59 | 600,000,000.00 | 784,109.59 | 600,784,109.59 | Financial assets held for trading | Owned Fund |
Yongfeng No.1Collective FundTrustPlan
Yongfeng No.1 Collective Fund Trust Plan | |||||||||||||
Trust | Nil | MinSheng Trust- Zhongmin Yongfeng No.1 Collective Fund Trust Plan | 500,000,000.00 | Fair value | 9,674,657.53 | 500,000,000.00 | 9,674,657.53 | 509,674,657.53 | Financial assets held for trading | Owned Fund | |||
Trust | Nil | Avic Trust-Tianji Huicai No.3 Bond Investment Collective Fund Trust Plan | 500,000,000.00 | Fair value | 7,421,917.81 | 500,000,000.00 | 7,421,917.81 | 507,421,917.81 | Financial assets held for trading | Owned Fund | |||
Trust | Nil | Zhongrong Trust- Huijujin No.1 Money Fund Collective Fund Trust | 500,000,000.00 | Fair value | 6,935,616.44 | 500,000,000.00 | 6,935,616.44 | 506,935,616.44 | Financial assets held for trading | Owned Fund |
Plan
Plan | |||||||||||||
Trust | Nil | Avic Trust-Tianji Huicai No.3 Bond Investment Collective Fund Trust Plan | 500,000,000.00 | Fair value | 685,616.44 | 500,000,000.00 | 10,595,890.41 | 500,685,616.44 | Financial assets held for trading | Owned Fund | |||
Trust | Nil | Zhongrong Trust- Huijujin No.1 Money Fund Collective Fund Trust Plan | 500,000,000.00 | Fair value | 500,000,000.00 | 10,528,767.12 | 500,000,000.00 | Financial assets held for trading | Owned Fund | ||||
Trust | Nil | Avic Trust-Tianji Huicai No.3 Bond Investment Collective Fund Trust Plan | 500,000,000.00 | Fair value | 500,000,000.00 | 500,000,000.00 | Financial assets held for trading | Owned Fund | |||||
Trust | Nil | Zhongrong | 500,000,000.00 | Fair value | 500,000,000.00 | 500,000,000.00 | Financial assets | Owned |
Trust-HuijujinNo.1MoneyFundCollective FundTrustPlan
Trust- Huijujin No.1 Money Fund Collective Fund Trust Plan | held for trading | Fund | ||||||||||
Other securities investments held at the end of this period | 10,025,444,400.98 | -- | 12,353,786,355.66 | -69,374,769.64 | 10,168,046,834.74 | 12,126,260,120.14 | 845,786,212.49 | 10,325,948,420.54 | -- | -- | ||
Total | 15,425,444,400.98 | -- | 12,756,302,866.36 | 1,301,821,154.46 | 0.00 | 15,268,046,834.74 | 12,126,260,120.14 | 2,239,789,598.72 | 17,199,660,855.34 | -- | -- | |
Disclosure date of the announcement of the board of directors for the approval of securities investment | April 29, 2020 | |||||||||||
Disclosure date of announcement of shareholders' committee for approval of securities Investment (if any) | 23 May, 2020 |
(2) Derivative investments
? Applicable √ N/ANo such cases in the reporting period.
5.5. Use of fund-raising
? Applicable √ N/A
No such cases in the reporting period.
6. Sale of major assets and equity Interests
6.1. Sale of major Assets
? Applicable √ N/ANo such cases in the reporting period
6.2. Sale of major equity Interests
? Applicable √ N/A
7. Analysis of major subsidiaries
√ Applicable ? N/A
Main subsidiaries and joint companies with an over 10% influence on the Company’s net profit
Unit:CNY
Company name
Company name | Company type | Business scope | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
Su Wine Trade Group Limited by Share Ltd. | Subsidiary | Wholesaling and retailing of prepackaged food | 334,400,000.00 | 17,523,095,738.91 | 3,812,370,210.74 | 19,994,698,526.68 | 3,810,931,697.73 | 2,969,807,865.72 |
Jiangsu Shuanggou Distillery Stock Co.,Ltd. | Subsidiary | Production and sales of Baijiu | 110,000,000.00 | 8,480,167,211.27 | 2,082,121,890.26 | 1,299,058,672.33 | 1,631,972,165.61 | 1,712,488,476.69 |
Jiangsu Shuanggou Liquor Operation Co.,Ltd. | Subsidiary | Wholesaling and retailing of prepackaged food | 5,000,000.00 | 4,140,870,588.94 | 1,182,136,028.53 | 3,685,694,999.59 | 1,559,022,241.40 | 1,169,148,142.52 |
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ N/A
Subsidiary name
Subsidiary name | How subsidiary was acquired or disposed during the reporting period | Impact on overall operation and results(CNY) |
Jiangsu Yanghe Painting and Calligraphy Academy | Establishment | Tiny |
Huaian Huaqu Wine Development Co.,Ltd. | Liquidation and cancellation | Tiny |
Jiangsu Huaqu Wine Group Nanjing Co.,Ltd. | Liquidation and cancellation | Tiny |
Jiangsu Huaqu Wine Group Nantong Co., Ltd. | Liquidation and cancellation | Tiny |
Jiangsu Huaqu Wine Group Suzhou Co., Ltd. | Liquidation and cancellation | Tiny |
Taizhou Huaqu Wine Development Co.,Ltd. | Liquidation and cancellation | Tiny |
Jiangsu Huaqu Wine Group Wuxi Co., Ltd. | Liquidation and cancellation | Tiny |
Jiangsu Huaqu Wine Group Yancheng Co., Ltd. | Liquidation and cancellation | Tiny |
Guizhou Guijiu Package Co.,Ltd. | Liquidation and cancellation | Tiny |
8. Structured entities controlled by the Company
□ Applicable √ N/A
9. Outlook for the future development of the Company
9.1. Analysis of industry situation
First, industry concentration has been further enhanced. According to data from theNational Bureau of Statistics, the number of Baijiu enterprises above designated sizedropped to 1,040 in 2020, which was 538 fewer than that in 2016. With the gradualimprovement of consumers' brand awareness, Baijiu market share tends to concentrateon top brands and leading enterprises, and the industry divergence continues to intensify.Famous and excellent Baijiu enterprises with capital advantages, managementadvantages, brand advantages, talent advantages and channel advantages willoutperform in the future Baijiu market competition.
Second, brand premiumization continues. In recent years, the continuous high growth ofthe domestic economy, the steady increase of residents' income and the structuralchange of the main consumer groups have provided strong support for the high-endBaijiu. In 2020, the total output of Chinese Baijiu enterprises above designated size was
7.4073 million kiloliters, down 2.46% year on year. Their sales revenue reached CNY
583.639 billion, up 4.61% year on year, and the total profit reached CNY 158.541 billion,up 13.35% year on year. The rapid profit growth fully demonstrated and verified thedevelopment trend of brand premiumization in Baijiu industry.
Third, the quality of products is further highlighted. As the economic environment andconsumption concept continue to change, the majority of consumers have graduallystrengthened the concept of "drinking less but drinking better". In 2020, multiple Baijiuenterprises continued to increase the investment in "intelligent distilling" and capacityexpansion projects to improve the capacity and production stability of high-quality Baijiu.The importance of quality improvement and communication in enterprise operation anddevelopment are increasingly highlighted. The Company's leading production capacity,storage scale and raw liquor quality laid a solid foundation for the future high-qualitydevelopment.
9.2. Future development strategy and next business plan
(1) Future development strategy
Looking into the 14th Five-Year Period, the Company will adhere to Xi Jinping Thoughton Socialism with Chinese Characteristics for a New Era as guidance, earnestlyimplement the important spirit on Jiangsu work that "spearheading as an example anddemonstration" instructed by General Secretary and further meet the latest requirementsby Provincial Party Committee of Suqian on "the reform and innovation of genes intomodernization, and making new era legend”. Yanghe will focus on "new journey, newlegend, new Baijiu capital" with consumers as a center, twin famous Baijiu as a main
carrier, multiple brands as a pillar, quality as a foundation, brand as a soul, culture as abasis, marketing as a king, innovation as a need, to build the "12345" strategic system, tocreate a wave leading Yanghe and a surging power Shuanggou. The Company willpromote to maintain sustained growth in quantity and steady improvement in quality at ahigher level, and achieve a more fully balanced, high-quality and efficient development.This will become a Chinese flavor that people are proud of and a Chinese name card thatwill be remembered by the world."1" refers to one goal. That is to create a wonderful era of Yanghe and a colorful era ofShuanggou, so that mellowness become an immortal legend and the aroma continuesthe classic of history."2" refers two priorities. That is the quality of the industry in the forefront and the brand inthe forefront of the country. It tries to be Chinese baijiu's leader and vanguard."3" refers to three types of synergy mechanisms. First is a quaternity of symbiosis ofmanufacturers and dealers, co-construction of factory and city, industry sharing andintegration of business forms. Second is a quaternity of production, living, ecology, life.Third is a quaternity of premiumization, branding, internationalization and capitalization."4" refers to four aggressive attitudes. Those are an attitude of a competitive combatant,an attitude of development and pursuit, an attitude of practitioner of responsibility, and anattitude of a loyal member of Party."5" refers to five strategic initiatives. That is to actively promote the quality strategy, brandstrategy, innovation strategy, culture strategy, talent strategy to help the Company toachieve high-quality development.
(2) Business plan in 2021
2021 is the start of the implementation of the 14th Five-Year Plan, the Company willsurround the overall tone of "deepening the transformation and upgrading with gatheringchange energy" to gathering six forces and six improvements and to implement sixhardcore projects. In the new historical starting point, the Company aims to build a newpattern of high-quality development. It will help Yanghe to become a famous ChineseBaijiu enterprise that is a trend-setting player in the world. The operating target in 2021 isto achieve a year-on-year increase in operating revenue of more than 10%.Gathering six forces and six improvements. First is a system thinking and strongmarketing promotes deep transformation. Second is long-term doctrine and strong qualitypromotes product upgrading. Third is a positioning law and strong brand promotesreputation building. Fourth is secondary entrepreneurship and strong innovationpromotes deep reform. Fifth is to combat entropy increase and strong managementpromotes efficiency improvement. Sixth is to face the future and strong culture promotesvalue identification.Implementing the six hardcore projects. Those refer to marketing depth transformationproject, product overall upgrade project, brand matrix enhancement project, systemmechanism activation project, management efficiency perfection project and cultureYanghe building project.
(3) Possible risks
First is a risk of intensified market competition. With the continuous improvement ofindustry concentration, the industry has gradually entered the stage of acceleratedcompetition, and famous Baijiu enterprises have accelerated the pace of nationalexpansion, presenting new changes in five aspects such as brand, channel, marketing,digitalization and organization. In view of the above risks, the Company will takeconsumer demand as the core guidance, through constantly optimizing the productstructure, expanding the channel market, innovative marketing mode and other ways,effectively improve the Company's comprehensive competitiveness and market share.Second is a risk of market demand changes. Due to the long duration and wide range ofthe epidemic, it has had a profound impact on consumers' consumption concept andbehavior, prompting consumers to pay more attention to the concept of healthy life, and"drinking less but drinking better" has become a new trend of consumption. In view of theabove risks, the Company will always adhere to the consumer demand as the coreguidance, and conduct in-depth consumer insight researches, increase the strength ofmarket research, product innovation and model innovation to continuously meetconsumers' diversified needs.
10. Visits paid to the Company for research, communication,interview, etc.
10.1 Activity registerin the reporting period
√ Applicable ? N/A
Date of visit
Date of visit | Reception site | Way of visit | Type of visitor | Visitor | The main contents of the discussion and the information provided | Index to main inquiry information |
19May 2020 | Nanjing operation center | Other | Other | Attending the Company's 2019 annual results presentation online | Communication on the Company's performance in 2019 and other aspects | Log Sheet of Investor Relations Activities on19May 2020 on www.cninfo.com.cn(No:2020-001) |
22 May 2020 | Nanjing operations center | Field survey | Other | 101 shareholders and investors who participated in the on-site communication at the Company's 2019 annual shareholders' meeting | Communication on the Company's annual business objectives, market competition and other aspects | Log Sheet of Investor Relations Activities on22 May 2020 on www.cninfo.com.cn(No:2019-002) |
11September 2020 | / | Telephone communication | Institution | 14 investors from CITIC, Fullgoal Fund, Taikang Assets and other institutions | Communicate on the progress and effectiveness of the company's | Log Sheet of Investor Relations Activities on 11September 2020 on www.cninfo.com.c |
Date of visit
Date of visit | Reception site | Way of visit | Type of visitor | Visitor | The main contents of the discussion and the information provided | Index to main inquiry information |
marketing adjustment and transformation, product upgrading and other aspects | n(No:2020-003) | |||||
15September 2020 | Headquarter | Field survey | Institution | 4 investors from Kaifeng Fund and Huatai Securities | Communicate on the Company's dealer inventory, marketing organization structure, marketing systemand other aspects | Log Sheet of Investor Relations Activities on15September 2020 on www.cninfo.com.cn(No:2020-004) |
22October 2020 | Nanjing operation center | Field survey | Institution | 11 investors from CITIC and public and private equity institutions | Communicate on the effect of channel adjustment, product inventory, cost inputand other aspects | Log Sheet of Investor Relations Activities on22October 2020, 26October 2020, 27October 2020 on www.cninfo.com.cn(No:2020-005) |
26October 2020 | Nanjing operation center | Field survey | Institution | 9 investors from Guosheng Securities and public and private equity institutions | Communicate on the effect of channel adjustment, product inventory, cost inputand other aspects | Log Sheet of Investor Relations Activities on22October 2020, 26October 2020, 27October 2020 on www.cninfo.com.cn(No:2020-005) |
27October 2020 | Nanjing operation center | Field survey | Institution | 27 investors from Guotai Junan Securities,Sinolink Securities, Haitong Securities, HSBC Qianhai Securities, China Merchants Securities, Soochow Securities, Industrial | Communicate on the effect of channel adjustment, product inventory, cost inputand other aspects | Log Sheet of Investor Relations Activities on22October 2020, 26October 2020, 27October 2020 on www.cninfo.com.cn(No:2020-005) |
Date of visit
Date of visit | Reception site | Way of visit | Type of visitor | Visitor | The main contents of the discussion and the information provided | Index to main inquiry information |
Securities, Shenggang Securities, and public and China Galaxy Securities, Pacific Securities, Changjiang Securities, Credit Suisse, Zhongtai Securities and other securities brokerages and private equity institutions | ||||||
4November 2020 | Headquarter | Field survey | Institution | 57 investors from CICC, CITIC, Everbright Securities, Guangfa Securities, Guotai Junan, Huatai Securities, Credit Suisse, Guosen Securities, Bank of China Securities, Northeast Securities, Soochow Securities, Dongxing Securities, Hongta Securities, Kaiyuan Securities, New Times Securities, Zheshang Securities and other securities brokerages and public offering, private offering, and QFII | Communicate on product sales and marketing of the Company | Log Sheet of Investor Relations Activities on4November 2020 on www.cninfo.com.cn(No:2020-006) |
Section V Significant Events
1. Profit distribution and converting capital reserves intoshare capital for common shareholdersProfit distribution policy for common stock during this period, especially formulation,execution or adjustments of cash dividend policy.
√ Applicable ? N/A
On 22 May 2020, the Company held 2019 annual shareholders' meeting, and the plan forprofit distribution for 2019 was reviewed and approved by this meeting. Plan for profitdistribution: based on the share capital participating in the dividend on the equityregistration date when the profit distribution plan is implemented (the base is the totalshare capital of 1,506,988,000 shares excluding the repurchased shares of 6,072,339shares), the Company used undistributed profit to distribute a cash dividend of CNY 30(tax inclusive) per 10 shares. The total cash dividend was CNY 4,502,746,983 (taxinclusive).
A special statement of cash dividend policy
A special statement of cash dividend policy | |
Whether it meets the requirements of the articles of incorporation or the resolution of shareholders' meeting. | Yes |
Whether the standard and proportion of dividends are definite and clear. | Yes |
Whether the relevant decision-making processand systemare complete. | Yes |
Whether non-executive directors perform their duties and play their due role. | Yes |
Whether the minority shareholders have the opportunity to fully express their opinions and appeals and whether their legitimate rights and interests have been adequately protected. | Yes |
Whether the conditions and procedures are compliant and transparent it the cash dividend policy is adjusted or changed. | The Company's cash dividend policy has not been adjusted or changed. |
Plans (or preliminary plans) for profit distribution and converting capital reserves intoshare capital for common shareholders for the recent three years (including the reportingperiod) are as following:
2020: The Company intends to use the undistributed profits to distribute to allshareholders a cash dividend of CNY 30 (including tax) for every 10 shares of the totalcapital stock (excluding the repurchased shares held in the Company's repurchasespecial securities account) on the basis of the total capital stock on the registration dateof the implementation of the profit distribution plan, and does not send bonus shares orconvert to additional capital stock. Assuming that the current total capital stock of theCompany is 1,506,988,000 shares, deducting 1,497,326,690 shares repurchased after9,661,310 shares held in the special securities account for share repurchase of theCompany as the base, the Company is expected to pay out a cash dividend of CNY4,491,980,070 (tax included) this year.
2019:based on the share capital participating in the dividend on the equity registrationdate when the profit distribution plan is implemented (the base is the total share capital of1,506,988,000 shares excluding the repurchased shares of 6,072,339 shares), theCompany used undistributed profit to distribute a cash dividend of CNY30 (tax inclusive)per 10 shares. The total cash dividend is CNY4,502,746,983 (tax inclusive). Theregistration date was 23 June 2020 and the ex-right & ex-dividend day was 24 June 2020.
2018: Based on its total of 1,506.988 million shares as at 31 December 2018, theCompany is to distribute a cash dividend of CNY32 (tax inclusive) per 10 shares. Thetotal cash dividend is CNY4,822.3616 million (tax inclusive). The registration date was 26June 2019 and the ex-right & ex-dividend day was 27 June 2019.
Cash dividend distribution over the recent three years (including the reporting period)
Unit: CNY
Year
Year | Cash dividends (tax inclusive) | Net profit attributable to common shareholders in the consolidated statement in the year | Ratio to net profit attributable to common shareholders in the consolidated statement in the year | Cash dividends in other forms (e.g. share repurchase) | Ratio of cash dividends in other forms | Total cash dividends (including other forms) | Ratio of cash dividends (including other forms) |
2020 | 4,491,980,070.00 | 7,482,228,633.63 | 60.04% | 1,002,128,680.79 | 13.39% | 5,494,108,750.79 | 73.43% |
2019 | 4,502,987,691.00 | 7,382,822,726.87 | 60.99% | 0.00 | 0.00% | 4,502,987,691.00 | 60.99% |
2018 | 4,822,361,600.00 | 8,115,189,794.69 | 59.42% | 0.00 | 0.00% | 4,822,361,600.00 | 59.42% |
The Company made a profit in the reporting period and the profit distributed to commonshareholders of the parentcompany was positive, but it did not put forward a preliminaryplan for cash dividend distribution to its common shareholders? Applicable √ N/A
2. Plan for profit distribution and converting capital reservesinto share capital for the reporting period
√ Applicable ? N/A
Bonus shares for every 10 shares (share) | 0 |
Dividend for every 10 shares (CNY) (tax included) | 30 |
Total shares as the basis for the preliminary plan for profit distribution (share) | 1,497,326,690 |
Total cash dividends (CNY) (tax inclusive) | 4,491,980,070.00 |
Cash dividends in other forms (e.g. share repurchase) | 1,002,128,680.79 |
Total cash dividends (CNY) (including other forms) | 5,494,108,750.79 |
Distributable profit (CNY)
Distributable profit (CNY) | 28,279,648,717.65 |
Percentage of cash dividends in the total distributed profit (including other forms) | 100% |
Information about cash dividends | |
The development stage of the Company is mature and the Company has no major fund expenditure arrangement. When the profit distribution is carried out, the proportion of cash dividends in this profit distribution should at least reach 80%. | |
Details about the preliminary plan for profit distribution and converting capital reserves into share capital | |
As audited by Suya Jincheng CPA LLP, the Company realized a net profit of CNY 8,225,517,084.03 for 2020. It provided CNY 0 as statutory surplus reserves, plus undistributed profit at the beginning of the year of CNY 24,556,878,616.62 and minus the distributed profit of CNY 4,502,746,983, the actual distributable profit would be CNY 28,279,648,717.65. In line with both the long-term development needs of the Company and the principle of giving appropriate returns to shareholders, The Company intends to use the undistributed profits to distribute to all shareholders a cash dividend of CNY 30 (including tax) for every 10 shares of the total capital stock (excluding the repurchased shares held in the Company's repurchase special securities account) on the basis of the total capital stock on the registration date of the implementation of the profit distribution plan. There is no bonus shares and reserves would not be converted into share capital. The profit distribution conforms to the cash dividend policy stipulated in the articles of association. Assuming that the current total capital stock of the Company is 1,506,988,000 shares, deducting 1,497,326,690 shares repurchased after 9,661,310 shares held in the special securities account for share repurchase of the Company as the base, the Company is expected to pay out a cash dividend of CNY 4,491,980,070 (tax included) this year. |
3. Performance of undertakings
3.1. Undertakings of the Company's actual controller, shareholders,related parties and acquirer, as well as the Company and othercommitment makers fulfilled during the reporting period or ongoing atthe end of this period
√ Applicable ? N/A
Undertaking | Undertaking giver | Type of undertaking | Details of undertaking | Undertaking date | Term | Performance |
Stock reform undertaking | ||||||
Undertaking made in the report of acquisition or change of interest | ||||||
Undertaking made in the reorganization of assets | ||||||
Undertakings given in time of IPO or refinancing | Jiangsu Yanghe Group Co.,Ltd. | Horizontal competition, related transactions and capital occupation | 1. The commitment to avoid horizontal competition: (1) At present, the Company has not engaged in the business of competing with the joint stock company. The Company is committed to maintaining the existing business structure and does not directly or indirectly operate any business that competes with the actual operation of the joint stock company or may constitute | 26 August 2009 | Long-term | In progress |
Undertaking
Undertaking | Undertaking giver | Type of undertaking | Details of undertaking | Undertaking date | Term | Performance |
a competition, or a subsidiary or subsidiary enterprise that is engaged in the above business. (2) If the Company violates the above commitments, the joint stock company has the right to require the company to immediately terminate its business competition and to compensate for the economic losses caused to the joint stock company. At the same time, the Company should pay liquidated damages to the joint stock company for CNY 10 million. (3) The Company has committed itself to the legitimate rights and interests of the shareholders of jointstock companies, other shareholders of jointstock companies and the creditors of jointstock companies without the use of their holding shareholder status in the joint stock company. (4) This undertaking shall enter into force on the date of signing, and shall not be revoked without the consent of the stock company. 2. The commitment to reduce the related transactions: the Company will strictly follow the requirements of the relevant laws as Corporation Law, Securities Law and Code of Corporate Governance for Listed Companies, and further reduce and strictly standardize the various related transactions between the Company and the joint stock companies, so as to ensure that the controlling shareholders and the actual control are not used. The status of making a person damages the interests of the shareholders of a joint stock company and other shareholders and does not occur in the case of new share holding companies. | ||||||
Jiangsu Blue Alliance Co., Ltd. | Horizontal competition, related transactions and capital | The commitment to avoid horizontal competition: 1. The Company is mainly engaged in investment | 23 November 2017 | Long-term | In progress. Blue |
Undertaking
Undertaking | Undertaking giver | Type of undertaking | Details of undertaking | Undertaking date | Term | Performance |
occupation | management and does not operate the same or associated business with the issuer. The Company will not engage in the business of the same or associated business with the issuer, without prejudice to the interests of the issuer, nor from the issuer for unfair interests. 2. If the Company violates the above commitment, the issuer has the right to claim compensation for the economic loss resulting from the issuer, and to pay a liquidated penalty of CNY 5 million, and the right to purchase the business item at the market price of the business item or the establishment of a cost price (which is the principle of the lowest value).3. This undertaking shall enter into force on the date of signing, and shall not be revoked without the consent of the issuer. | Alliance merged Blue Sky Trade and Blue Ocean Trade. Blue Alliance carries on relevant commitments | ||||
Jiangsu Blue Alliance Co., Ltd. | Share reduction | After a year of trading in the stock exchange, the shares of the issuer will not exceed 25% of the total number of shares held by the issuer, and the issuer's shares and changes in the shares are declared to the issuer in a timely manner. | 23 November 2017 | Long-term | In progress,Blue Alliance merged Blue Sky Trade and Blue Ocean Trade. Blue Alliance Carries on relevant commitments | |
Cong Xuenian | Other undertaking | As directors, supervisors and senior managers of Blue Alliance made the commitment: 1. During the tenure of the issuer, Blue Alliance equity transferred annually shall not exceed 25% of the total number of shares held by Blue Sky Trade。 2. If I leave the issuer, I will not transfer the shares of Blue Alliance that I have held within six months after my departure. 3. If I leave from the issuer, the number of Blue Alliance transferred shares trade within twelve months after | 23 November 2017 | Long-term | In progress |
Undertaking
Undertaking | Undertaking giver | Type of undertaking | Details of undertaking | Undertaking date | Term | Performance |
six months of departure does not exceed 50% of the total share of Blue Alliance. | ||||||
Feng Pantai | Other undertaking | As directors, supervisors and senior managers of Blue Alliance made the commitment: 1. During the tenure of the issuer, Blue Alliance equity transferred annually shall not exceed 25% of the total number of shares held by Blue Sky Trade。 2. If I leave the issuer, I will not transfer the shares of Blue Alliance that I have held within six months after my departure. 3. If I leave from the issuer, the number of Blue Alliance transferred shares trade within twelve months after six months of departure does not exceed 50% of the total share of Blue Alliance. | 23 November 2017 | 8January2022 | In progress | |
Equity incentive undertaking | ||||||
Other undertakings to non-controlling shareholders | ||||||
Whether the undertaking is fulfilled on time | Yes | |||||
If the undertaking is overdue and not fulfilled, specific reasons for failing to fulfill any undertakings and plan for the next step | N/A |
3.2. Where any earnings forecast was made for any of the Company'sassets or projects and the reporting period is still within the forecastperiod, the Company shall explain whether the performance of the assetor project reaches the earnings forecast and why? Applicable √ N/A
4. Occupation of the Company's capital by the controllingshareholder or its related parties for non-operating purposes? Applicable √ N/A?No such cases in the reporting period.
5. Explanation of the board of directors, the supervisorycommittee and non-executive directors (if any) regarding the"non-standard audit opinion" for the reporting period
? Applicable √ N/A
6. Reasons for changes in accounting policies, accountingestimates and accounting methods as compared to thefinancial report for the prior year
√ Applicable ? N/A
Since 1 January 2020, the Company has implemented the revised by Ministry of Financeon July 2017: the Accounting Standards for Business Enterprises No. 14 - Revenue(Caikuai[2017]No.22). According to the requirements of the new revenue standard, theCompany presents the relevant information of financial instruments without retroactivelyadjusting the comparative financial statements.
7. Reasons for retrospective restatement of major accountingerrors during the reporting period? Applicable √ N/A?No such cases in the reporting period.
8. Reasons for changes in scope of the consolidated financialstatements as compared to the financial report for the prioryear
√ Applicable ? N/A
8.1 Establishment of subsidiaries
Su Wine Group Co.,Ltd. ,the Company’s holding subsidiary,invested CNY 2 million toestablishJiangsu Yanghe Painting and Calligraphy Academy. On 6 July 2020, theRegistration Certificate of Private Non-Enterprise Unit (Legal Person) issued by the CivilAffairs Department of Jiangsu Province was obtained. It was included in the consolidatedfinancial statements from July 2020.
8.2 Cancellation of subsidiaries
(1) Huaian Huaqu Wine Development Co.,Ltd., Jiangsu Huaqu Wine Group NanjingCo.,Ltd., Taizhou Huaqu Wine Development Co.,Ltd.,Guizhou Guijiu Package Co.,Ltd.,the holding subsidiaries, were liquidated and terminated onJanuary 2020.FromFebruary2020, theyare no longer included in the consolidated scope of the consolidated financialstatements.
(2) Jiangsu Huaqu Wine Group Suzhou Co., Ltd., Jiangsu Huaqu Wine Group YanchengCo., Ltd., the holding subsidiaries, were liquidated and terminatedonMarch 2020.FromApril 2020, theyare no longer included in the consolidated scope of the consolidatedfinancial statements.
(3) Jiangsu Huaqu Wine Group Nantong Co., Ltd., Jiangsu Huaqu Wine Group Wuxi Co.,Ltd., the holding subsidiaries, were liquidated and terminated on April 2020. From May
2020, they are no longer included in the consolidated scope of the consolidated financialstatements.
9. Engagement and disengagement of accounting firmAccounting firm at present
Name of the domestic accounting firm
Name of the domestic accounting firm | Suyajincheng CPA LLP |
Remuneration for the domestic accounting firm (CNY 10,000) | 190.8 |
Consecutive years of the audit service provided by the domestic accounting firm | 14 |
Names of the certified public accountants from the domestic accounting firm | Li Laimin, Li Yan |
Consecutive years of the audit service provided by the certified public accountants | Li Laimin (1 year), Li Yan (2 years) |
Whether the accounting firm was changed in the current period.?? Yes √ No?
Engagement of any accounting firm for internal control audit, financial adviser or sponsor? Applicable √ N/A
10. Possibility of listing suspension and termination afterdisclosure of this annual report? Applicable √ N/A
11. Bankruptcy and reorganization
? Applicable √ N/A?No such cases in the reporting period.
12. Material litigation and arbitration
? Applicable √ N/A?No such cases in the reporting period.
13. Punishments and rectifications
? Applicable √ N/A?No such cases in the reporting period.
14. Credit conditions of the company as well as its controllingshareholder and actual controller? Applicable √ N/A?
15. Implementation of any equity incentive plan, employeestock ownership plan or other incentive measures foremployees
? Applicable √ N/A?
16. Significant related-party transactions
16.1. Related-party transactions arising from routine operation
? Applicable √ N/A?No such cases in the reporting period.
16.2. Related-party transactions regarding purchase or sales of assetsor equity interests
? Applicable √ N/A?No such cases in the reporting period.
16.3. Related-partytransactions arising from joint investments inexternal parties
? Applicable √ N/A?No such cases in the reporting period.
16.4. Credits and liabilities with related parties
√Applicable □N/A?
There are no non-operational related creditor's rights and debt transactions.
16.5. Other significant related-party transactions
? Applicable √ N/A?No such cases in the reporting period.
17. Significant contracts and their execution
17.1. Trusteeship, contracting and leasing
17.1.1. Trusteeship
? Applicable √ N/ANo such cases in the reporting period.
17.1.2. Contracting
? Applicable √ N/A
No such cases in the reporting period.
17.1.3. Leasing
? Applicable √ N/A
No such cases in the reporting period.
17.2. Major guarantees
? Applicable √ N/ANo such cases in the reporting period.
17.3. Entrusted cash assets management
17.3.1. Entrust finance management
√ Applicable ? N/A
Entrust finance in the reporting period.
Unit:CNY10, 000
Product type
Product type | Source of entrust finance | Amount | Undue closing balance | Overdue outstanding amount |
Trust finance | Owned Fund | 1,212,041 | 1,212,041 | 0 |
Bank finance | Owned Fund | 391,225 | 391,225 | 0 |
Total | 1,603,266 | 1,603,266 | 0 |
Information about significant amount of individual entrust finance or high-risk entrustfinance with principle nonguaranteed and poor liquidity.
√ Applicable ? N/A
Unit: CNY10,000
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Avic Trust Co.,Ltd. | Trust | Avic Trust apocalypse [2018] No.561 Baohua YihaoCollective Fund Trust Plan | 16,000 | Owned fund | 2August 2019 | 1August 2021 | Used to issue loans to Shenzhen Jushenghua Co., Ltd., to supplement the company's liquidity fund gap;Payment for the construction of Guangzhou Airport High-end Warehousing Project. | Cash | 9.40% | 3,008 | 1,504 | 1,508.12 | 0 | Yes | Yes | |
Chongqing Trust Co.,Ltd. | Trust | Chongqing Trust-Gusu No.2 Collective Fund Trust Plan (Phase V) | 8,752 | Owned fund | 30August2019 | 23August 2021 | Used to issue trust loans to Suzhou Wuxiang Real Estate Co., Ltd., and finally used the borrowed | Cash | 8.00% | 1,388.81 | 700.16 | 786.27 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
funds for the development and construction of Block No. 59, Changnan Road Southand Wuxing RoadEast, Suxiang Cooperation Zone, Xiangcheng District, Suzhou City, Jiangsu Province, as well as the repayment of shareholder loans. | ||||||||||||||||
Chongqing Trust Co.,Ltd. | Trust | Chongqing Trust -Gusu No.3 Collective Fund Trust Plan | 7,980 | Owned fund | 27September 2019 | 7August 2021 | Used to issue trust loan to Suzhou Evergrande Real Estate | Cash | 7.80% | 1,159.61 | 622.44 | 1,016.83 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Development Co., Ltd., and finally used for the development and construction of Block No. 60, Fangqiao Road East and Chunqiu Road North, Huangdai Town, Xiangcheng District, Suzhou City, Jiangsu Province, as well as the repayment of shareholder loan. | ||||||||||||||||
Zhongrong International Trust Co.,Ltd. | Trust | ZhongrongTrust-Fengteng No.56Collective Fund Trust | 16,000 | Owned fund | 15November 2019 | 15November 2021 | Used toissue business property | Cash | 8.70% | 2,787.81 | 1,392 | 1,395.81 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Plan | loan to Nanchang Wanda City Investment Co., Ltd. | |||||||||||||||
Chongqing Trust Co.,Ltd. | Trust | Chongqing Trust -Qirui No.10Collective Fund Trust Plan | 15,000 | Owned fund | 12December 2019 | 8May 2021 | Used to participant in Chongqing Trust Hongrui No.6 Collective Fund Trust Plan | Cash | 7.90% | 1,665.49 | 1,185 | 1,077.86 | 0 | Yes | Yes | |
Chongqing Trust Co.,Ltd. | Trust | Chongqing Trust- Zhangxin No.2 Collective Fund Trust Plan | 20,000 | Owned fund | 3March 2020 | 7August 2021 | Used for "Chongqing Trust - Kunming Wanda City Project Collective Fund Trust Plan Phase I", and will eventually be used for Kunming Wanda City to invest in | Cash | 8.00% | 2,288.22 | 1,328.22 | 1,280.00 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
the development and construction of projects in line with the "432" conditionand to repay its development loans and debts | ||||||||||||||||
FOTIC | Trust | FOTIC- Furong No.160 Chengdu Evergrande Loan Project Collective Fund Trust Plan(Phase IX) | 10,000 | Owned fund | 13March 2020 | 13September 2021 | Used to issue loans to Chengdu Evergrande New North City Real Estate Co., Ltd. for the development and construction of Evergrande Chengdu Caojiaxiang Plaza Block C Project | Cash | 8.20% | 1,233.37 | 658.25 | 635.78 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
FOTIC | Trust | FOTIC- Furong No.160 Chengdu Evergrande Loan Project Collective Fund Trust Plan(Phase X) | 10,000 | Owned fund | 13March2020 | 13 September2021 | Used to issue loans to Chengdu Evergrande New North City Real Estate Co., Ltd. for the development and construction of Evergrande Chengdu Caojiaxiang Plaza Block C Project | Cash | 8.20% | 1,233.375 | 658.25 | 635.78 | 0 | Yes | Yes | |
Zhongrong International Trust Co.,Ltd. | Trust | ZhongrongTrust- Rongzhu No.220 Collective Fund Trust Plan | 20,000 | Owned fund | 24April 2020 | 27February2022 | Used for transfer of 10% equity of Shanghai Fengshun Real Estate Co., Ltd held by Evergrande Real Estate Group or its | Cash | 8.20% | 3,028.38 | 1,127.78 | 1,078.36 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
designated third party; Also used for the development and construction of Block G of Zhujiajiao Residential Area, Qingpu District, Shanghai. | ||||||||||||||||
Chongqing Trust Co., Ltd | Trust | Chongqing Trust- Pengrui No.1Collective Fund Trust Plan | 12,000 | Owned fund | 27April2020 | 18March 2022 | Used to issue a trust loan to Baoneng Automobile Co., Ltd.. Baoneng Automobile Co., Ltd., will mainly use the loan funds for workshop construction, production equipment | Cash | 7.90% | 1,792.11 | 644.12 | 615.55 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
procurement and other fund purposes approved by the trustee of its "Xi 'an Baoneng New Energy Automobile Parts Production Base" project. | ||||||||||||||||
Avic Trust Co.,Ltd. | Trust | Avic Trust-Apocalypse[2019]No.721Kids’ World Cultural and Travel ServicesCollective Fund Trust Plan | 7,000 | Owned fund | 29April 2020 | 29April 2021 | Used to provide financing support for the construction of Changsha "Kids’ World" amusement park and the purchase of tourism equipment for the borrower | Cash | 8.20% | 574 | 386.86 | 369.56 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Evergrande Tourism Group Co., Ltd by issuing trust loans. | ||||||||||||||||
Avic Trust Co., Ltd | Trust | Avic Trust- Apocalypse[2019]No.19 Nanning Wuxiang Lake Project Collective Fund Trust Plan | 15,000 | Owned fund | 29April2020 | 29April 2022 | Used for transfer of 20% equity proceeds of Sunshine City Guangxi held by Fujian Sunshine andfollow-updevelopment and construction of the real estate project of Sunshine City Guangxi. | Cash | 8.70% | 2,610 | 879.53 | 851.88 | 0 | Yes | Yes | |
Zhongrong International Trust Co.,Ltd. | Trust | Zhongrong Trust- Fengying No.90Collective Fund Trust Plan | 10,000 | Owned fund | 30April 2020 | 30April 2021 | Used for the trustee to purchase the specific assets proceeds | Cash | 7.90% | 790 | 530.27 | 380.93 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
of Huzhou Xiangsheng Hongjing Real Estate Development Co., Ltd., and the subscription fund is specially used for the development and construction of "Xiangsheng Xunyue" project and other purposes approved by the trustee. | ||||||||||||||||
Zhongrong International Trust Co.,Ltd. | Trust | Zhongrong Trust- Junrui No.175 Collective Fund Trust Plan | 11,000 | Owned fund | 12May 2020 | 12May 2021 | Used to issue trust loan to Fuzhou Shengjing Sunshine City Real Estate | Cash | 8.20% | 902 | 575.8 | 548.61 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Development Co., Ltd., for the follow-up development and construction of Sunshine Wuyi Garden Project. | ||||||||||||||||
CITIC Trust Co.,Ltd, | Trust | CITIC Trust-Light City Kunming Dianchi Lake Half Mountain Garden Financing Collective Fund Trust Plan | 15,000 | Owned fund | 19May 2020 | 19May 2021 | Used to transfer the specific assets proceeds of Block 7 of Kunming Dianchi Banshan Garden Project held by project company for the development and construction of Block 7. | Cash | 7.20% | 1,080 | 668.71 | 636.16 | 0 | Yes | Yes | |
MinmetalsInternationa | Trust | MinmetalsInternational | 10,000 | Owned fund | 22May 2020 | 22May 2021 | Used to issue trust | Cash | 8.30% | 830 | 507.1 | 482.08 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
l Trust Co.,Ltd. | Trust- Hengxin Gongzhu No.310Fengying No.2 Collective Fund Trust Plan | loans to Xi 'an Chengming Tourism Development Co., Ltd., and finally be used for the development and construction of the Block B-02 of Evergrande Cultural Tourism City Project, located in Qinhan New Town Block of West Xian New Area. | ||||||||||||||
Shaanxi InternationalTrust Co.,Ltd, | Trust | Shaanxi InternationalTrust- Evergrande Hainan Specific Debt Collective | 18,000 | Owned fund | 28May 2020 | 28 May 2021 | Used for the development and construction of Block 1601 of | Cash | 8.40% | 1,512 | 898.92 | 853.35 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Fund Trust Plan | Haikou Meilisha Project under the name of New World China Real Estate (Haikou) Co., Ltd. | |||||||||||||||
Industrial Trust Co.,Ltd. | Trust | Industrial Trust- ZhidiI062(JinlingGuanlan) Collective Fund Trust Plan (Phase IV) | 15,000 | Owned fund | 29May 2020 | 29May 2021 | Used to transfer specific assets proceeds from "mortgage" of the 18824.4 square meters of underlined land of Cuican Jiangshan Project held by Nanjing Shirong Real Estate Co., Ltd. After the financier | Cash | 7.40% | 1,110 | 377.1 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
obtains the transfer price, it is specially used to replace part of the development loan of Minsheng Bank under Cuican Jiangshan Project and the construction and development of Block G024 Project (Phase I) | ||||||||||||||||
CITIC Trust Co.,Ltd, | Trust | CITIC Trust- JIahe No.118 Evergrande Guiyang New World Collective Fund Trust Plan | 19,000 | Owned fund | 29May 2020 | 29November 2021 | Used for the development and construction of Guiyang Evergrande Jinyang New World Block 4C | Cash | 7.60% | 2,171.93 | 854.53 | 814.97 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
and 4D project. | ||||||||||||||||
Zhongrong International Trust Co.,Ltd. | Trust | ZhongrongTrust- Fengying No.91 Collective Fund Trust Plan | 10,000 | Owned fund | 2June 2020 | 2 June 2021 | Used for acquisition of specific assets proceeds of "Xiangsheng Jiuxi" project of Anjixiang Shenghongjing Real Estate Development Co., Ltd., and the fundis used for the development and construction of "Xiangsheng Jiuxi" | Cash | 7.90% | 790 | 458.85 | 359.29 | 0 | Yes | Yes | |
Zhongrong International Trust Co.,Ltd. | Trust | Zhongrong Trust- Fengying No.99 Collective Fund Trust Plan | 10,000 | Owned fund | 19 June 2020 | 19 June 2021 | Used to acquire specific assets proceeds of "Taixing Future | Cash | 7.90% | 790 | 422.05 | 389.59 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
City" project of Taixing Xiangrui Real Estate Co., Ltd. | ||||||||||||||||
AvicTrust Co.,Ltd. | Trust | AvicTrust- apocalypse [2020] Pan 'an Lake Ecological Town Project LoanCollective Fund Trust Plan | 14,320 | Owned fund | 19 June 2020 | 19June 2022 | Used to issue trust loans to Evergrande Real Estate Group Nanjing Real Estate Co., Ltd. The fund is used for the development and construction of Xuzhou Evergrande Pan 'an Lake Ecological Town Housing Project. | Cash | 8.70% | 2,491.68 | 665.39 | 636.76 | 0 | Yes | Yes | |
CITIC | Trust | CITIC Trust- | 7,000 | Owned fund | 23June | 12Novem | Used to | Cash | 7.50% | 729.25 | 274.73 | 244.59 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Trust Co.,Ltd. | Fuli Hangzhou Project Collective Fund Trust Plan | 2020 | ber 2021 |
FOTIC | Trust | FOTIC- Furong No.191 Collective Fund Trust Plan | 10,000 | Owned fund | 8July 2020 | 1 August 2022 | Used for the development and construction of Evergrande Tianjin Shanshui City Project (Block 4) | Cash | 7.20% | 1,082.96 | 347.18 | 327.45 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
and the repayment of shareholder loans. | ||||||||||||||||
Avic Trust Co.,Ltd. | Trust | Avic Trust -Apocalypse[2020] No.81Sunac Chongqing Caijia Project Loan Collective Fund Trust Plan | 8,000 | Owned fund | 10July 2020 | 10 January 2022 | Used to issue development and construction loan forSunac HanmingChongqing Caijia Yinghu Ten-mile Project. | Cash | 7.40% | 890.43 | 282.21 | 264.37 | 0 | Yes | Yes | |
AvicTrust Co., Ltd | Trust | Avic Trust- Tianji Huicai No.3 Bond Investment Collective Fund Trust Plan | 50,000 | Owned fund | 14July 2020 | 21June 2021 | Used for investment bank deposits (current deposit, time deposit, interbank deposit), etc. | Cash | 4.55% | 2,131.64 | 1,059.59 | 991.03 | 0 | Yes | Yes | |
Chongqing Trust Co., Ltd. | Trust | Chongqing Trust- Jingrun No.1 Collective Fund Trust | 8,800 | Owned fund | 14July 2020 | 25July2021 | Used to invest in "Chongqing Trust · Gus | Cash | 7.40% | 670.83 | 303.3 | 283.67 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Plan | u No.1 Collective Fund Trust Plan". During idle period, the trust funds can be invested in bank deposits, bonds, bank financial products, directional asset management plans of securities companies, asset management plans of funds, trust products, trust proceeds and other investments. | |||||||||||||||
Minmetals International Trust | Trust | Minmetals International Trust- | 15,000 | Owned fund | 23July 2020 | 23July 2021 | Used to transferspecific assets | Cash | 8.00% | 1,200 | 529.32 | 493.15 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Co.,Ltd. | Hengxin Gongzhu No.362- Jingrong No.23 Collective Fund Trust Plan | proceeds of the project "west of Longhushan Avenue and north of Shangrao Street (part of Block JLH601-B08 and B09) in Jiulong Lake, Honggutan New Area, held by Nanchang Xinming Real Estate Development Co., Ltd., and the financier uses the transfer price for the development and |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
construction of the target project. | ||||||||||||||||
Zhongrong International Trust Co.,Ltd. | Trust | Zhongrong Trust- Fengteng No.97 Collective Fund Trust Plan | 10,000 | Owned fund | 24July 2020 | 24July2021 | Used to acquire specific assets proceeds of"Nanning Yongjin Bay Phase II"Project held by Nanning Senchi Real Estate Co., Ltd. | Cash | 7.70% | 770 | 337.53 | 179.32 | 0 | Yes | Yes | |
Avic Trust Co.,Ltd. | Trust | Avic Trust -Apocalypse [2020] No.77Qingdao Oriental Movie Capital loanCollective Fund Trust Plan | 8,800 | Owned fund | 24 July 2020 | 24 July 2021 | Used toissue a installment trust loan to Oriental Movie Capital Sunac Investment Co., Ltd., and the fund is used for the developme | Cash | 7.30% | 642.4 | 281.6 | 262.24 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
nt and construction of Block A-4-3 project of Qingdao "Oriental Movie Capital". | ||||||||||||||||
Zhongrong Trust Co., Ltd | Trust | Zhongrong Trust- Rongzhu No.339 Collective Fund Trust Plan | 12,000 | Owned fund | 29July 2020 | 29July 2021 | Used to issue a trust loan to Beijing Fuhua Real Estate Development Co., Ltd., which is used for the development and construction of Beijing Evergrande Ligong Project (Phase IV) | Cash | 7.60% | 912 | 384.79 | 357.3 | 0 | Yes | Yes | |
China Minsheng Trust Co.,Ltd. | Trust | Minsheng Trust- Zhixing No.930 Chongqing Aoyuan | 7,000 | Owned fund | 7August 2020 | 7February2022 | Used to acquire the proceedsof 81% equity of | Cash | 8.70% | 916 | 243.6 | 216.9 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Specific Assets Proceeds Collective Fund Trust Plan | Shanghai Aogang held by Aoyuan Group Chongqing Real Estate Co., Ltd, and the fund eventually is used for the development and construction of the large block of Dapu Aoyuan Plaza project. | |||||||||||||||
Shaanxi InternationalTrust Co.,Ltd, | Trust | Shaanxi InternationalTrust- Agile Hainan Specific Debt Collective Fund Trust Plan | 15,000 | Owned fund | 14August 2020 | 14August2020 | Used to invest the specificdebt of the debtor in Hainan Yajule Real Estate Development Co., Ltd.The | Cash | 7.30% | 1,095 | 417 | 384 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
fund is used for the development and construction of high-rise projects (Phase I and Phase II) in Hainan Qingshui Bay Area B09and 26 high-rise residential buildings in B11-1 and B11-2 under the name of Hainan Agile. | ||||||||||||||||
Minmetals International Trust Co.,Ltd. | Trust | Minmetals Trust -Hengxing Gongzhu No.324- Xingcheng No.30 Collective | 20,000 | Owned fund | 14August 2020 | 14August 2021 | Used to transfer specific assetsproceeds formed by Danfu Project of | Cash | 8.00% | 1,600 | 609.32 | 561.1 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Fund Trust Plan | Yangguang City, Middle Lantang Road, 108 District, Duanzhou District, Zhaoqing City held by Zhaoqing Haoyang Real Estate Development Co., Ltd. The trust fund is used for the development and construction of Yangguang City Danfu Project (Block A and Block B) on the south of Middle |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Lantang Road, 108 District, Duanzhou District, Zhaoqing City. | ||||||||||||||||
China Minsheng Trust Co.,Ltd. | Trust | Minsheng Trust- Zhixing No.1047 Baoneng Investment and Finance Project Collective Fund Trust Plan | 20,000 | Owned fund | 21 August 2020 | 21 August 2022 | Used to transfer 6% equity proceeds of Shenzhen Jushenghua Co.Ltd.. held by Shenzhen Baoneng Investment Group. The fund is used to supplement working capital and repayment of loans from financial institutions, bond financing, shareholder and | Cash | 8.90% | 3,560 | 643.73 | 614.66 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
affiliated company, etc. arising from the need to supplement working capital for Baoneng Investment and its subsidiaries | ||||||||||||||||
Avic Trust Co.,Ltd. | Trust | Avic Trust- Tianji Huicai No.3 Bond Investment Collective Fund Trust Plan | 50,000 | Owned fund | 27 August 2020 | 24 May 2021 | Used for investment in bank deposits (current deposit, time deposit and inter-bank deposit);Reverse bond repurchase, inter-bank certificates of deposit, bonds and bills in the exchange and inter- | Cash | 4.30% | 1,590.41 | 742.19 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
bank markets;Bond funds (including convertible bond funds) and bond segregated accounts;Cash management financial instruments;Other inter-bank or exchange fixed income products with high security permitted by laws, regulations and regulatory authorities | ||||||||||||||||
Zhongrong Trust Co.,Ltd. | Trust | Zhongrong Trust- Huijujin No.1 Monetary Collective | 50,000 | Owned fund | 27 August 2020 | 24 May 2021 | Used to invest in bank deposits, money | Cash | 6.10% | 2,256.16 | 1,052.88 | 1,052.88 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Fund Trust Plan | market funds, bond funds, exchange and inter-bank market bonds and fixed income products. | |||||||||||||||
Chongqing Trust Co.,Ltd. | Trust | Chongqing Trust- Jinyang No.1 Collective Fund Trust Plan | 20,000 | Owned fund | 27 August 2020 | 27 February 2022 | Used for operation turnover and repayment of debts of the borrower, Shenzhen Jushenghua Co., Ltd., or its subsidiaries | Cash | 7.80% | 2,346.41 | 538.52 | 491.51 | 0 | Yes | Yes | |
China Minsheng Trust Co.,Ltd. | Trust | Minsheng Trust- Zhongmin Yongfeng No.1 Collective Fund Trust Plan | 50,000 | Owned fund | 28 August 2020 | 25 May 2021 | Used to invest in bonds, money market instruments, money funds, | Cash | 5.65% | 2,089.73 | 967.47 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
bond funds traded on exchanges and inter-bank markets | ||||||||||||||||
Shanghai Trust Co.,Ltd. | Trust | Shanghai Trust- Ruby An’xin Wenjian Series (Shanghai Trust-H-6001) | 30,000 | Owned fund | 3 September 2020 | 8 June 2021 | Used to invest in money market instruments, including cash, bank deposits, large negotiable certificates of deposit, and reverse repurchase of bonds | Cash | 4.60% | 1,051.07 | 449.92 | 0 | 0 | Yes | Yes | |
Shanghai Trust Co.,Ltd. | Trust | Shanghai Trust- Ruby An’xin Wenjian Series (Shanghai Trust-H-6001) | 20,000 | Owned fund | 23 September 2020 | 15 June 2021 | Used to invest in money market instruments, including cash, bank deposits, large negotiable certificates of deposit, | Cash | 4.60% | 667.95 | 249.53 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
and reverse repurchase of bonds | ||||||||||||||||
Shaanxi InternationalTrust Co.,Ltd, | Trust | Shaanxi InternationalTrust- Youzhai No.28 Nantong Haian Collective Fund Trust Plan | 4,000 | Owned fund | 24 September 2020 | 24 September 2022 | Used to invest in specific debt of the debtor of Nantong Changhai Construction Investment Development Co.,Ltd..The fund is used to supplement the funds required by the infrastructure construction and greening and renovation projects in the market field | Cash | 7.00% | 560 | 75.18 | 67.67 | 0 | Yes | Yes | |
Avic Trust | Trust | Avic Trust- | 6,000 | Owned fund | 25 | 24 | Used to | Cash | 8.50% | 1,018.6 | 135.53 | 120.16 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Co.,Ltd. | Apocalypse[2020] No.408 Nanjing Banqiao Project Equity Investment Trust Plan | September 2020 | September 2022 | increase capital and share of Nanjing Hengze Real Estate Development Co., Ltd and Nanjing Hengsheng Real Estate Development Co., Ltd through Shenzhen Hangqiao Investment Partnership (Limited Partnership), and the fund finally is used for the development and construction of Nanjing Lishui Block |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
under the company's name | ||||||||||||||||
Chongqing Trust Co.,Ltd. | Trust | Chongqing Trust- Pengrui No.3 Collective Fund Trust Plan | 10,000 | Owned fund | 13 October 2020 | 18 March 2022 | Used to issue a trust loan to Shenzhen Jushenghua Co., Ltd., and the loan fund is mainly used for operation turnover such as repayment of financing from financial institutions, and other fund purposes approved by the trustee. | Cash | 7.60% | 1,084.82 | 164.49 | 141.59 | 0 | Yes | Yes | |
Shanghai Trust Co.,Ltd. | Trust | Shanghai Trust- Xinyue Fengli Collective Fund Trust | 30,000 | Owned fund | 14 October 2020 | 9 June 2021 | Used to invest in bonds, including but not | Cash | 4.50% | 880.27 | 288.49 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Plan | limited to, government bonds, finance debt (including subordinated debt and hybrid capital debt), corporate bonds, corporate bonds (including non-public corporate bonds), central bank bills, (very) short-term, medium-term notes, directional (PPN), convertible bond financing tools/exchangeable bonds, project |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
yield bonds, asset-backed securities (notes), etc | ||||||||||||||||
Shanghai Trust Co.,Ltd. | Trust | Shanghai Trust- Xinyue Fengli Collective Fund Trust Plan | 20,000 | Owned fund | 21 October 2020 | 16 June 2021 | Used to invest in bonds, including but not limited to, government bonds, finance debt (including subordinated debt and hybrid capital debt), corporate bonds, corporate bonds (including non-public corporate bonds), central bank bills, (very) short-term, | Cash | 4.50% | 586.85 | 175.07 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
medium-term notes, directional (PPN), convertible bond financing tools/exchangeable bonds, project yield bonds, asset-backed securities (notes), etc | ||||||||||||||||
Avic Trust Co.,Ltd. | Trust | Avic Trust-Apocalypse[2019] No.116 Kunming Evergrande Yunxi Manor Collective Fund Trust Plan | 15,000 | Owned fund | 6 November 2020 | 6 November 2022 | Used to issue a trust loan to Yunnan Shangju Real Estate Co., Ltd., and it specifically is used for the development and construction of Kunming "Evergrand | Cash | 8.00% | 2,433.33 | 180.82 | 146.67 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
e Yunxi Manor"Project in Block 5, 11, 12 and 13 | ||||||||||||||||
Huarun Trust Co.,Ltd. | Trust | Huarun Trust- Dingxin No.240 Fuli Taiyuan Project Collective Fund Trust Plan | 10,000 | Owned fund | 17 November 2020 | 17 November 2021 | Used to issue a trust loan to Taiyuan Fuli Shengda Real Estate Development Co., Ltd., for the development and construction of Block A, B, C, E and X2 projects in Jinxi City | Cash | 6.90% | 690 | 83.18 | 64.27 | 0 | Yes | Yes | |
Minmetals International Trust Co.,Ltd. | Trust | Minmetals Trust- Hengxin Gongzhu No.318- Xinjiu No.77 Collective Fund Trust Plan | 9,500 | Owned fund | 20 November 2020 | 20 November 2021 | Used to transfer specific assets proceeds formed by Block A1-2 "Evergrande Jiulong | Cash | 7.90% | 750.5 | 84.3 | 61.68 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Bay" located in Guandu District, Kunming City, which is held by Kunming Henghai, and it is specifically used for the construction and development of the target blockin line with the “432” condition | ||||||||||||||||
CITIC Trust Co.,Ltd. | Trust | CITIC Trust- Country Garden Suyun No.4 Finance Collective Fund Trust Plan | 8,000 | Owned fund | 25 November 2020 | 25 May 2022 | CITIC Trust offers financing to Nantong Ruixing in the mode of asset proceeds transfer and repurchase, and | Cash | 6.70% | 801.8 | 52.87 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Nantong Ruixing uses the trust fund for the development and construction of Country Garden Xingchen Garden Project in line with the "432" condition | ||||||||||||||||
Avic Trust Co.,Ltd. | Trust | Avic Trust- Tianji Huicai No.3 Bond Investment Collective Fund Trust Plan | 50,000 | Owned fund | 30 November 2020 | 31 May 2021 | Used to invest in bank deposits (current deposit, time deposit and inter-bank deposit);Reverse bond repurchase, inter-bank certificates of deposit, | Cash | 4.45% | 1,109.45 | 188.97 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
bonds and bills in the exchange and inter-bank markets;Bond funds (including convertible bond funds) and bond segregated accounts;Cash management financial instruments;Other inter-bank or exchange fixed income products with high security and permitted by laws, regulations and regulatory authorities |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Minmetals International Trust Co.,Ltd. | Trust | Minmetals Trust- Hengxin Gongzhu No.372- Dingning No.10 Collective Fund Trust Plan | 8,000 | Owned fund | 4 December 2020 | 4 December 2022 | Used to transfer specific assets proceeds of Haidian Northwest Wang Block Project held by Beijing Minghai Real Estate Co., Ltd., and the fund is ultimately used for the development and construction of the target project. | Cash | 5.47% | 926.29 | 32.37 | 19.45 | 0 | Yes | Yes | |
China Minsheng Trust Co.,Ltd. | Trust | Minsheng Trust- Zhongmin Yongfeng No.1 Collective Fund Trust Plan | 20,000 | Owned fund | 18 December 2020 | 15 June 2021 | Used to invest in bonds, money market instruments, money funds, | Used | 5.30% | 519.84 | 37.75 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
bond funds, etc. traded on exchanges and inter-bank markets | ||||||||||||||||
China Minsheng Trust Co.,Ltd. | Trust | Minsheng Trust- Zhongmin Yongfeng No.1 Collective Fund Trust Plan | 60,000 | Owned fund | 22 December 2020 | 22 June 2021 | Used to invest in bonds, money market instruments, money funds, bond funds, etc. traded on exchanges and inter-bank markets | Cash | 5.30% | 1,585.64 | 78.41 | 0 | 0 | Yes | Yes | |
Jiangsu Trust Co.,Ltd. | Trust | Jiangsu Trust- An’xin Tianli No.1 Collective Fund Trust Plan | 20,000 | Owned fund | 31 December 2020 | 24 June 2021 | Used for all kinds of deposits, all kinds of reverse repurchase bonds and bonds, asset-backed securities, money | Cash | 4.80% | 460.27 | 0 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
market funds, bond funds, other standardizeddebt assets and trust, securities, funds, insurance, banking and futures and fixed income asset management products issued by subsidiaries where investment scope in standardizing asset approved by laws and regulations or regulatory body |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
Zhongrong Trust Co.,Ltd. | Trust | Zhongrong Trust- Huijujin No.1 Monetary Collective Fund Trust Plan | 50,000 | Owned fund | 31 December 2020 | 29 June 2021 | Used to invest in bank deposits, money market funds, bond funds, bonds in the exchange and inter-bank market, fixed income products (including but not limited to reverse repurchase with a maturity of less than one year and other fixed income products approved by the client) and | Cash | 6.10% | 1,479.45 | 0 | 0 | 0 | Yes | Yes |
Name oftrustee
Name of trustee | Trustee type | Product type | Amount | Source of funding | Commencement date | Termination date | Funds allocation | Method of Remuneration | Referenced annualized return | prospective earnings(if applicable) | Actual profit & loss for the period | Actual principal amount recovered for the period | Amount reserved for impairment (if applicable) | Whether it go through statutory procedures | Whether there will be entrust finance plans in the future | Summary and reference(if applicable) |
other purposes as stipulated in the contract | ||||||||||||||||
Total | 1,022,152 | -- | -- | -- | -- | -- | -- | 76,326.13 | 28,337.37 | -- | 0 | -- | -- | -- |
Entrust finance expected to be failed to recover principle or other situation leading to impairment? Applicable √ N/A
17.3.2 Entrust loans
? Applicable √ N/ANo such cases in the reporting period.
17.4 Daily operation significant contracts
? Applicable √ N/ANo such cases in the reporting period.
17.5 Other significant contracts
? Applicable √ N/ANo such cases in the reporting period.
18. Social responsibilities
18.1 Information about taking social responsibilities
The information about taking social responsibilities disclosed in 2020 Annual Social Responsibilities Report in detail on www.cninfo.com.cn.
18.2Information about targeted poverty alleviation
18.2 18.2.1 Targeted poverty alleviation plan
According to the call of Suqian municipal party committee and municipal government onpoverty alleviation with the work of "guacun baohu" and "three into three help", theCompany actively takes actual action to practice the enterprise spirit of "serving thecountry and the people" and takes bravely social responsibility.According to the overallwork arrangement of "guacun baohu" by Suqian municipal government, the Companysupports Qiuzhuang village in Zhenglou branch, Yanghe new district and is responsiblefor the assistance work for 177 low-income households in Daguo village and Taipingvillage, Zhenglou branch, among which 88 households are in Taiping village and 89 inDaguo village. Combined with the local actual condition of Zhenglou branch, theCompany makes the support plan carefullyto complete the support mission. It promotesthe rural development, and enhances the farmers' income, strengthens the relationshipbetween cadres and masses, and makes due contributions to “liang ju yi gao” work.
18.2.2 Summary of annual targeted poverty alleviation
In 2020, each task for "guacun baohu" was completed successfully. In 2020, theCompany conducted in-depth field researches, continued to follow up the villagecollective economic income increase projects, and invested CNY 200,000 in QiuzhuangVillage for land transfer and planning rice-shrimp farming project.The village collectiveeconomy has achieved sustainable development. The Company actively publicized localpolicies for the benefit of the people, organized regular poverty-alleviation visits, carriedout special care activities for the Spring Festival and the epidemic, and sent holidaywarm,anti-epidemic knowledge and related materials to low-income farmers. By the end of2020, all 177 low-income households have been lifted out of poverty.The Companycontinues to participate in the "group" poverty alleviation and education aid in Suqian,donating CNY 4 million to help poor students realize their dreams. The Company wasawarded "Group" charity enterprise in the "group" poverty alleviation and education aidactivity and "Suqian Charity Award" in Suqian in 2020.
18.2.3 Poverty alleviation achievement
Indicator
Indicator | Unit | Amount/Implementation situation |
A.Overall situation | —— | —— |
Including:1.Fund | CNY 10,000 | 420 |
2.Goods converted into cash | CNY 10,000 | 11 |
3.Establishing card for archives of poor people out of poverty | Person | 716 |
B. Input by project | —— | —— |
1.Industrial development | —— | —— |
2.Transfer and employment | —— | —— |
3.Removal and relocation | —— | —— |
4.Educational poverty alleviation | —— | —— |
Including: 4.1 investment amount to subsidize poor students | CNY 10,000 | 400 |
4.2 Number of poor students subsidized | Person | 2,000 |
5.Health poverty alleviation | —— | —— |
6.Ecological protection | —— | —— |
7.Basic guarantee | —— | —— |
8.Social poverty alleviation | —— | —— |
8.2 investment amount of fixed-point poverty alleviation work | CNY 10,000 | 11 |
9.Other project
9.Other project | —— | —— |
Including:9.1.Item | Item | 1 |
9.2.Input amount | CNY 10,000 | 20 |
9.3. The number of registered impoverished people to be out of poverty | Person | 716 |
C. Awards(content and level) | —— | —— |
Suqian | "Group" charity enterprise in the "group" poverty alleviation and education aid activity and "Suqian Charity Award" in Suqian in 2020 |
18.2.4 Follow-up poverty alleviation plan
After several years of support, the collective economy of Qiuzhuang Village has achievedsustainable income increase, the low-income farmers in Dagou and Taiping Village haveachieved comprehensive poverty alleviation, and the consolidation of the achievementsof "guacun baohu" has become the top priority in the next stage of poverty alleviationwork. In 2021, the Company will continue to implement the policy unremittingly.Theinvestment will not be reduced.The support team will not withdraw to ensure that thework of "guacun baohu" continues to be carried out continuously, and the Companyresolutely keep the fruits of poverty alleviation victory.
First, continue to follow up the village collective economic assistance projects. TheCompany actively connects with the village "two committees" team members, discussespoverty alleviation projects, focuses on Qiuzhuang village collective transfer of land, andgrain farmers jointly set up grain planting base, further plans and implements collectiveeconomic projects. With the help of the Company's production and management platform,it will coordinate different stakeholders with wisdom and efforts to expand channels ofassistance and unblock channels of production and marketing, and to improve theautonomy of sustainable development. The Company will help and revitalize the villagecollective economy, and form project experience that can be referred to and promoted,promote other projects, form an initial poverty alleviation industry, and lay an importantfoundation for continuing to promote the revitalization of rural industries.
Second, consolidate and expand the achievements of low-income farmers in povertyalleviation.In the process of poverty alleviation visits, timely adjustments andimprovements were made to help farmers out of poverty according to the changes in theirsituations, so as to reduce the dependence of low-income farmers on external help. TheCompany will focus on rural households with relatively low incomes and the elderly, theweak, the sick and the disabled, and increase assistance to ensure that all registeredpoor people under the current standards continue to lift themselves out ofpoverty.Through in-depth investigation, the Company revitalizes the rural human capital,strengthen the excavation and cultivation of local talents in rural areas, cultivate a batchof local experts, so that they can serve the village collective economic projects nearby,and drive the employment of low-income farmers.
18.3 Information about environment protection
Whether the listed company and its subsidiaries belong to heavy polluting industries prescribed by the environmental protection departments
√Yes?No
Company
name
Company name | Name of main pollutant and particular pollutant | Discharge type | Amount of discharge outlet | Distribution of discharge outlet | Emission concentration | Pollution discharge standard | Total emission | Approved total emission | Excessive discharge |
Jiangsu Yanghe Distillery Co., Ltd. | COD Ammonia nitrogen Total phosphorusTotal nitrogen | Indirect discharge | 1 | Within site | COD:60.7mg/L;Ammonia nitrogen:1.11mg/L;Total phosphorus:1.53mg/L; Total nitrogen:22.6mg/L | COD:400mg/L;Ammonia nitrogen :30mg/L;Total phosphorus: 3mg/L;Total nitrogen: 50mg/L | COD:91.47 ton; Ammonia nitrogen:1.52ton;Total phosphorus:2.00tons; Total nitrogen:35.06 tons | COD:454.7 ton per year;Ammonia nitrogen:74.4 tons per year;Total phosphorus:2.07 tons per year; Total nitrogen:37.3 tons per year | No |
Jiangsu Shuanggou Distillery Stock Co.,Ltd. | COD Ammonia nitrogen Total phosphorusTotal nitrogen | Indirect discharge | 1 | Within site | COD:75mg/L;Ammonia nitrogen:3.5mg/L;Total phosphorus:2.2mg/L; Total nitrogen:20mg/L | COD:400mg/L;Ammonia nitrogen:35mg/L;Total phosphorus:8 mg/L;Total nitrogen:45 mg/L | COD:47.63 tons; Ammonia nitrogen :2.22 tons; Total phosphorus:1.39mg/L;Total nitrogen:12.70mg/L | COD:356.48 tons per year;Ammonia nitrogen:31.19 tons per year; Total phosphorus:7.129 tons per year; Total nitrogen:40.104 tons per year | No |
Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch | COD Ammonia nitrogen Total phosphorusTotal nitrogen | Indirect discharge | 1 | Within site | COD:125mg/L;Ammonia nitrogen :2.8mg/L;Total phosphorus:1.8 mg/L; Total nitrogen:16mg/L | COD:400mg/L;Ammonia nitrogen :30mg/L;Total phosphorus:3 mg/L; Total nitrogen:40 mg/L | COD:83.49 tons; Ammonia nitrogen :1.87 tons; Total phosphorus:1.20mg/L;Total nitrogen:10.69mg/L | COD:672 tons per year;Ammonia nitrogen:42 tons per year;Total phosphorus:5tons per year; Total nitrogen:58.5 tons per year | No |
Guizhou | COD | After treatment up | 1 | Within site | COD: | COD;100mg/L;Amm | COD:1.94tons;Amm | COD:2.057 tons per | No |
Companyname
Company name | Name of main pollutant and particular pollutant | Discharge type | Amount of discharge outlet | Distribution of discharge outlet | Emission concentration | Pollution discharge standard | Total emission | Approved total emission | Excessive discharge |
Guijiu Co.,Ltd. | Ammonia nitrogen Nitrogen oxides Sulfur dioxide | to the standards | 32mg/L;Ammonia nitrogen:0.402mg/L;Nitrogen oxides:25mg/m?;Sulfur dioxide:11.8mg/m? | onia nitrogen:10mg/L; Nitrogenoxides:200mg/m?;Sulfur dioxide :50mg/m? | onia nitrogen:0.24 tons ;Nitrogenoxides:0.06 tons;Sulfur dioxide :0.02tons | year;Ammonia nitrogen:0.308 tons per year;Nitrogen oxides:0.06244 tons per year | |||
Hubei Lihuacun Distillery Co.,Ltd. | COD Ammonia nitrogen | Indirect discharge | 1 | Within site | COD:26.0mg/L;Ammonia nitrogen:0.30mg/L | COD:400mg/L;Ammonia nitrogen:30mg/L | COD:0.14tons ;Ammonia nitrogen:0.002 tons | COD:12 ton per year;Ammonia nitrogen:0.72 tons per year | No |
Construction and operation of pollution prevention and control facilities
(1) Jiangsu Yanghe Distillery Co., Ltd.: The sewage treatment station was built in 2012. The project total investment is CNY 96 million and it covers anarea of 19,000 square meters. Its designed capacity is 10,000 tons per day. The sewage treatment adopts physical treatment method, chemicaltreatment method and anaerobic biological treatment method, aerobic biological treatment method, which achieves the treatment of high-concentration waste water of 250 tons per hour. It implements the"Fermentation Alcohol and Liquor Industrial Pollutants Emission StandardsCB27631-2011" Indirect Emissions Standards. In 2020, CNY 12.26 million was spent on sewage treatment operations. It treated 1.52 million tons ofwastewater, and the discharge concentrations of various pollutants are lower than the national discharge standards.The biogas boiler room was built,and the biogas produced by anaerobic fermentation of sewage treatment is all used for biogas boiler combustion.
(2) Jiangsu Shuanggou Distillery Stock Co.,Ltd.: The sewage treatment station was built in 2013. The project total investment is CNY 42.50 millionand it covers an area of 15,000 square meters. Its designed capacity is 5,400 tons per day. The sewage treatment adopts anaerobic tower, UASB,AAO, secondary sedimentation tank and dephosphorization tank treatment process, and implements "Shuanggou Town Sewage Treatment PlantTakeover Standard". In 2020, the anaerobic tank of sewage treatment facilities and equipment was repaired and cleaned, and the deodorant systemwas maintained and upgraded, and pollution equipment and facilities in the Qu-making workshop was reformed. In 2020, CNY 13 million was investedand it treated 635,100 tons of wastewater, and the discharge concentration of various pollutants is lower than the national discharge standard. Thebiogas boiler room was built, and the biogas produced by anaerobic fermentation of sewage treatment is all used for biogas boiler combustion.
(3) Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch: The sewage treatment station was built in 2015. The project total investment is CNY 50 millionand it covers an area of 15,000 square meters. Its designed capacity is 6,000 tons per day.In terms of process treatment, EGSB+AAO+deeptreatment technology is adopted. The high-concentration waste water can be treated up to 250 tons per hour. After treatment, all indicators reachedthe indirect emission standard of "Fermented Alcohol and Liquor Industrial Pollutant Emission Standard CB27631-2011". In 2020, a total of CNY
11.32 million was invested to further optimize the effluent index through the implementation of measures such as improvement of aerobic coolingequipment, fan improvement and deodorization equipment. A total of 667,900 tons of wastewater was treated, and the discharge concentration ofvarious pollutants is lower than the national discharge standard.The biogas boiler room was built, and the biogas produced by anaerobic fermentationof sewage treatment is all used for biogas boiler combustion.
(4) Guizhou Guijiu Co.,Ltd.: The sewage treatment station was built in 2013. The project total investment is CNY 3.58 million and it covers an area of600 square meters. Its designed capacity is 220 tons per day. The wastewater was treated by UASB anaerobic/contact oxidation aerobic process. Thedischarge of waste water is in accordance with the Discharge Standards for Water Pollutants in Fermented Alcohol and Liquor Industry GB27631-2011Table 2 Emission Standards. At the same time, an online detection system is installed and the facilities are in good condition. The dischargeconcentration of various pollutants is lower than the national discharge standard in 2020.The boiler uses gas-fired boiler, and its fuel is natural gas.
(5) Hubei Lihuacun Distillery Co.,Ltd.: The sewage treatment station was built in 2020. The project total investment is CNY 4.76 million and it coversan area of 702 square meters.The production and living wastewater was treated by AAO process.Its designed capacity is 240 tons per day. Thedischarge of waste water is in accordance with the Discharge Standards for Water Pollutants in Fermented Alcohol and Liquor Industry GB27631-2011Table 2 Emission Standards. The discharge concentration of various pollutants is lower than the national discharge standard in 2020.The boileruses gas-fired boiler, and its fuel is natural gas.
Environmental impact assessment of construction projects and other administrative permits for environmental protectionThe Company and each subsidiary’s construction project environmental impact reports and "three at the same time" acceptance materials, pollutantdischarge permit and other materials are complete.
Emergency plan for environmental emergenciesThe Company and its subsidiaries have made emergency plans for environmentalemergencies, among which the Company and Shuanggou Distillery have filed withJiangsu Province Environmental Protection Department. Siyang Branch of the Companyhas filed with Siyang Town Environmental Protection Bureau. Guijiu Companyhas filedwith Xiuwen Town Environmental Protection Bureau, which is managed by GuizhouProvince Environmental Emergencies Center. Lihuacun Distillery has filed with YunyangDistrict Environmental Protection Bureau.
Environmental self-monitoring programme
(1) The Company has installed COD, ammonia nitrogen, total nitrogen, total phosphorus,PH online monitoring instruments, conducted daily manual sampling and self-testing,monthly commissioned a third-party qualification agency to carry outa samplinginspection;
(2) Shuanggou Distillery has installed COD, ammonia nitrogen, total nitrogen, totalphosphorus, PH online monitoring instruments, conducted daily manual sampling andself-testing, monthly commissioned a third-party qualification agency to carry out asampling inspection;
(3) Siyang Branch of the Company has installed COD, ammonia nitrogen, total nitrogen,total phosphorus, PH online monitoring instruments, conducted daily manual samplingand self-testing, quarterly commissioned a third-party qualification agency to carry out asampling inspection;
(4)Guijiu Company has installed COD, ammonia nitrogen, total nitrogen, total phosphorus,PH online monitoring instruments, conducted daily manual sampling and self-testing,quarterly commissioned a third-party qualification agency to carry out a samplinginspection;
(5)Lihuacun Distillery monitors wastewater discharge index daily, and entrusts a third-party qualification agency to monitor it every six months.
Other environmental information that should be made publicN/A
Other environmental related informationDuring the reporting period, Shuanggou Distillery was awarded the title of "Jiangsu GreenFactory", and Shuanggou Distillery and Siyang Branch of the Company were alsoawarded the title of "2020 Suqian Environmental Protection and Green TrustedEnterprise".
19. Other significant events
√ Applicable ? N/A
1. The Company indirectly held partnership share of Jiangsu Jiequan Emerging IndustryDevelopment Fund (Limited Partnership) via Jiangsu Xinghe Investment ManagementCo.,Ltd. and Nanjing Xingnahe Venture Capital Investment partnership (LimitedPartnership). Jiangsu Jiequan Emerging Industry Development Fund (LimitedPartnership) completed fund-raising and put on record in AMAC. The record numbers areSCF515 and SCL005. It was disclosed in detail on the Announcement of cooperativeinvestment with professional investment institutions (No: 2017-021) on 30 December2017 and the Announcement of progress of cooperative investment with professionalinvestment institutions (No: 2018-011) on 12 April 2018.
2. Su Wine Wealth Management Co., Ltd., a wholly-owned subsidiary of the Company,subscribed the partnership shares of Suzhou Danqing Phase II InnovativePharmaceutical Industry Investment Partnership (limited partnership). Danqing Phase IIcompleted fund-raising and put on record in AMAC. The record number is SED720. Fordetails, please refer to theAnnouncement on cooperation and investment withprofessional investment institutions (Announcement No: 2018-021) and Announcementon cooperation, Announcement on cooperation andinvestment with professionalinvestment institutions (Announcement No: 2018-030) and Announcement oncooperation andinvestment with professional investment institutions (Announcement No:
2019-004)disclosed by the Company on 28 April 2018,16 November 2018 and 11 April2019 respectively.
3. Jiangsu Yanghe Investment Management Co.,Ltd. subscribed the partnership sharesof Panmao (Shanghai) Investment Center (limited partnership). For details, please referto the Announcement on cooperation and investment with professional investmentinstitutions (Announcement No: 2018-025) disclosed by the Company on 22 June 2018.
4. Jiangsu Yanghe Investment Management Co.,Ltd. subscribed the partnership sharesof Jiangsu Zijin Hongyun Health Industry Investment Partnership (limited partnership),Suqian Yida Industry Venture Capital Fund (limited partnership), and Hunan HuayeTiancheng Venture Capital Partnership (limited partnership). For details, please refer tothe Announcement on cooperation and investment with professional investmentinstitutions (Announcement No: 2019-002) disclosed by the Company on 28 March 2019,Announcement on participating in Suqian Yida Industrial Venture Capital Fund andrelated transaction (Announcement No: 2019-012) disclosed by the Company on 30 April2019, and Announcement on the subscription of Hunan Huaye Tiancheng VentureCapital Fund (Announcement No: 2019-021) disclosed by the Company on 6 September2019.
5. Jiangsu Yanghe Investment Management Co.,Ltd.subscribed the partnership shares ofNanjing Xingna Heyuan Venture Capital Partnership (Limited Partnership), SuzhouZhongxin Xingfu Shuzhi Venture Capital Partnership (Limited Partnership), NanjingHongyang Equity Investment Partnership (Limited Partnership). For details, please referto the Announcement on cooperation and investment with professional investmentinstitutions (Announcement No: 2020-031) disclosed by the Company on 12August 2020,Announcement on the subscription of Suzhou Zhongxin Xingfu Shuzhi Venture CapitalFund(Announcement No: 2019-035) disclosed by the Company on 19October 2020,Announcement on the subscription of Nanjing Hongyang Equity InvestmentFund(Announcement No: 2020-038) disclosed by the Company on 4 November 2020.
20. Significant events of subsidiaries
? Applicable √ N/A
Section VI Changes in Shares and Information about Shareholders
1. Changes in shares
1.1 Changes in shares
Unit:Share
Before | Changes in this year ( + , - ) | After | |||||||
Number | Proportion | Issuance of new shares | Bonus shares | Capitalization of capital reserves | Other | Subtotal | Number | Proportion | |
I.Restricted shares | 258,048,426 | 17.12% | 0 | 0 | 0 | 1,421,297 | 1,421,297 | 259,469,723 | 17.22% |
1.Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
2.Shares held by state-owned corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
3.Shares held by other domestic investors | 258,048,426 | 17.12% | 0 | 0 | 0 | 1,421,297 | 1,421,297 | 259,469,723 | 17.22% |
Including:Shares held by domestic corporations | 249,480,000 | 16.55% | 0 | 0 | 0 | 0 | 0 | 249,480,000 | 16.55% |
Shares held by domestic individuals | 8,568,426 | 0.57% | 0 | 0 | 0 | 1,421,297 | 1,421,297 | 9,989,723 | 0.67% |
4.Shares held by foreign investors | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Including: Shares held by foreign corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Shares held by foreign individuals | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
II.Non-restricted shares | 1,248,939,574 | 82.88% | 0 | 0 | 0 | -1,421,297 | -1,421,297 | 1,247,518,277 | 82.78% |
1.CNY common shares | 1,248,939,574 | 82.88% | 0 | 0 | 0 | -1,421,297 | -1,421,297 | 1,247,518,277 | 82.78% |
2.Domestically listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
3.Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
4.Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
III.Total shares | 1,506,988,000 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,506,988,000 | 100.00% |
Reasons for the change in shares
√ Applicable ? N/A
The reasons for the change of the Company's shares are mainly caused by changes of the locked shares held by the Company's executives.Approval of share changes? Applicable √N/ATransfer of share ownership? Applicable √N/AImplementation progress of share repurchase
√ Applicable ? N/A
On 29 October 2019, the sixth session of the ninth meeting of the board of directors was held. It reviewed and approved the plan about repurchasingpart of the social public shares, and agreed to use its own funds to repurchase shares through centralized bidding. The total amount of repurchase isnot less than CNY 1 billion (inclusive) and not more than CNY 1.5 billion (inclusive). The repurchase price is not more than CNY 135.00 per share(inclusive). The period of repurchases is within 12 months since the repurchase plan is reviewed and approved by the sixth session of the ninthmeeting of the board of directors. This share repurchased is used to implement equity incentive or employee stock ownership plan for core keyemployees of the Company.The repurchase affairs was disclosed in details in “About the plan of share repurchase from part of public shares”(Announcement No. 2019-026), “Repurchase report” (Announcement No.2019-028), etc. on China Securities Journal, Shanghai Securities News andSecurities Times, Securities Daily and www.cninfo.com.cn on 30 October 2019 and on 5 November 2019.The Company's 2019 annual equity distribution plan has been implemented on 24 June 2020. According to the Company's repurchase plan, the upperlimit of the price of repurchased shares has been adjusted from no more than RMB 135 / share (inclusive) to no more than RMB 132.01 / share(inclusive).For details, please refer to the "Announcement on Adjusting the Price Limit of Repurchased Shares After Implementing the 2019 AnnualEquity Distribution Plan" disclosed by the Company in China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily andwww.cninfo.com.cn on 20June 2020 (Announcement No. 2020-024).On 21 January 2020, the Company repurchase shares for the first time. On 22 January 2020, the Company disclosed the repurchase of shares for thefirst time.On 3 February, 4March, 2 April, 8 May, 3 June, 3 July, 5 August, 3 September, 9 October 2020, theCompanies disclosed the progress ofrepurchase of shares. For details, please refer to the relevant announcements disclosed by the Company in China Securities Journal, ShanghaiSecurities News, Securities Times, Securities Daily and www.cninfo.com.cn.
The actual repurchase period of the Company wasfrom 21 January 2020 to29 October2020.The Company has repurchased 9,661,310 shares of the Company through thespecial securities account of share repurchase with its own funds in the way ofcentralized bidding, accounting for 0.6411% of the total share capital of theCompany.The highest purchase price wasCNY 131.99 per share, and the lowestwasCNY 80.37 per share. The total amount of funds used wasCNY 1,002,128,680.79(including transaction costs).The repurchase amount of the Company reached the lowerlimit of the total amount of repurchase funds in the repurchase plan and not exceeded theupper limit of the total amount of repurchase funds, and the repurchase plan has beencompleted.
Implementation progress of share repurchase reduction through centralized bidding? Applicable √N/A
Effects of changes in shares on the basic EPS, diluted EPS, net assets per shareattributable to common shareholders of the Company and other financial indexes overthe last year and the last reporting period
√Applicable ?N/A
Increased basic earnings per share and diluted earnings per share by CNY 0.0193 pershare due to the number of shares repurchased.
Other contents that the Company considers necessary or is required by the securitiesregulatory authorities to disclose?Applicable √N/A
2. Changes in restricted shares
√Applicable ?N/A
Unit:Share
Name ofshareholder
Name of shareholder | Opening restricted shares | Increase in this period | Unlocked in this period | Closing restricted shares | Reason | Date of unlocking |
Feng Pantai | 4,258,489 | 1,419,497 | 0 | 5,677,986 | Locked due to leaving executive position (Supervisor) | The sales restriction was not unlocked during the reporting period.The restricted sale of 25% of the shares held will be |
unlockedon 8January2021, andtherestrictedsale of theremainingshareslocked willbeunlockedinaccordance with therelevantrules.
unlocked on 8 January 2021, and the restricted sale of the remaining shares locked will be unlocked in accordance with the relevant rules. | ||||||
Wang Kai | 0 | 1,800 | 0 | 1,800 | Locked due to current executive position (Director) | N/A |
Total | 4,258,489 | 1,421,297 | 0 | 5,679,786 | -- | -- |
2. Issuance and listing of securities
2.1 Securities(excluding preference shares)issued in the reportingperiod?Applicable √N/A
2.2 Changes in total shares of the company and the shareholderstructure, as well as the asset and liability structure?Applicable √N/A
2.3 Existing staff-held shares
?Applicable √N/A
3. Shareholders and actual controller
3.1 Total number of shareholders and their shareholdings
Unit:share
Total number of common shareholders atthe end of the reporting period
Total number of common shareholders at the end of the reporting period | 77,730 | Total number of common shareholders at the prior month-end before the disclosure date of the annual report | 136,216 | Total number of preference shareholders with resumed voting rights at the period-end(if any)(see Note 8) | 0 | Total number of preference shareholders with resumed voting rights at the period-end(if any)(see Note 8) | 0 | |||||
Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders | ||||||||||||
Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Increase/decrease during the reporting period | Number of restricted shares held | Number of non-restricted shares held | Pledged or frozen shares | |||||
Status of shares | Number of shares | |||||||||||
Jiangsu Yanghe Group Co.,Ltd. | State-owned corporation | 34.16% | 514,858,939 | 0 | 0 | 514,858,939 | ||||||
Jiangsu Blue Alliance Co., Ltd. | Domestic non-state-owned corporation | 19.55% | 294,591,926 | -28,546,700 | 249,480,000 | 45,111,926 | ||||||
Shanghai Haiyan Logistics Development Co.,Ltd. | State-owned corporation | 9.67% | 145,708,137 | 0 | 0 | 145,708,137 | ||||||
Shanghai Jieqiang Tobacco Sugar &Wine(Group)Co.,Ltd | State-owned corporation | 3.96% | 59,744,099 | -864,400 | 0 | 59,744,099 | ||||||
Hong Kong Securities Clearing Company Ltd. (HKSCC) | Outboundcorporation | 3.06% | 46,048,354 | -72,536,890 | 0 | 46,048,354 | ||||||
Bank of China Co.,Ltd. – Liquor index classification securities investment fund by China Merchants Fund | Other | 1.92% | 28,882,107 | 13,964,550 | 0 | 28,882,107 | ||||||
Bank of China Co.,Ltd. – E-funds blue chip selected and hybridsecurities investment funds | Other | 1.80% | 27,200,000 | 27,200,000 | 0 | 27,200,000 | ||||||
Bank of China Co.,Ltd. – E-funds SME hybrid securities investment funds | Other | 1.11% | 16,700,000 | 9,219,999 | 0 | 16,700,000 | ||||||
China Securities Finance Corporation limited | State-owned corporation | 0.92% | 13,790,044 | 0 | 0 | 13,790,044 |
Central Huijin Asset Management Co., Ltd.
Central Huijin Asset Management Co., Ltd. | Outbound corporation | 0.85% | 12,766,400 | 0 | 0 | 12,766,400 | ||||
Strategic investors or general corporations to be top 10 shareholders due to placing of new shares(if any)(see Note 3) | Nil | |||||||||
Related-parties or acting-in-concert | N/A | |||||||||
Explanation of above shareholders involving in entrusting/ entrusted voting rights and abandonment of voting rights | Nil | |||||||||
Shareholdings of the top 10 non-restricted shareholders | ||||||||||
Name of shareholder | Number of non-restricted shares held in the period end | Type of shares | ||||||||
Type | Number | |||||||||
Jiangsu Yanghe Group Co.,Ltd. | 514,858,939 | CNY common shares | 514,858,939 | |||||||
Shanghai Haiyan Logistics Development Co.,Ltd. | 145,708,137 | CNY common shares | 145,708,137 | |||||||
Shanghai Jieqiang Tobacco Sugar & Wine(Group)Co.,Ltd. | 59,744,099 | 59,744,099 | ||||||||
Hong Kong Securities Clearing Company Ltd. (HKSCC) | 46,048,354 | CNY common shares | 46,048,354 | |||||||
Jiangsu Blue Alliance Co., Ltd. | 45,111,926 | CNY common shares | 45,111,926 | |||||||
Bank of China Co.,Ltd. – Liquor index classification securities investment fund by China Merchants Fund | 28,882,107 | CNY common shares | 28,882,107 | |||||||
Bank of China Co.,Ltd. – E-funds blue chip selected and hybridsecurities investment funds | 27,200,000 | CNY common shares | 27,200,000 | |||||||
Bank of China Co.,Ltd. – E-funds SME hybrid securities investment funds | 16,700,000 | 16,700,000 | ||||||||
China Securities Finance Corporation limited | 13,790,044 | CNY common shares | 13,790,044 | |||||||
Central Huijin Asset Management Co., Ltd. | 12,766,400 | CNY common shares | 12,766,400 | |||||||
Description of the relationship or concerted action between the top 10 unlimited outstanding shareholders, and between the top 10 outstanding shareholders and the top 10 shareholders | N/A | |||||||||
Description of the top 10 common shareholders participating in securities margin trading(if any)(see Notes 4) | N/A |
Whether any of the top 10 common shareholders or the top non-restricted common shareholders of the Company conduct any promissory repurchaseduring the reporting period.? Yes √ No
No such cases in the reporting period.
3.2 Controlling shareholder
Nature of controlling shareholder:Local state-ownedType of controlling shareholder:Corporation
Name ofcontrollingshareholder
Name of controlling shareholder | Legal representative/Company principal | Date of establishment | Organization code | Main business |
Jiangsu Yanghe Group Co.,Ltd. | Li Minfu | 8 May 1997 | 91321300142334989Y | Sales of brewing mechanical equipment, Liquor Export, Import of various raw and auxiliary material used for production, equipment and accessories, Industrial investment; municipal public engineering, building engineering, tourism cultural industry investment. |
Shareholdings of the controlling shareholder in other listed companies at home or abroad during the reporting period | N/A |
Change of the controlling shareholder during the reporting period?Applicable √N/ANo such cases in the reporting period.
3.3 Actual controller and its persons acting in concert
Nature of actual controller:Local State-owned Assets Supervision and AdministrationCommissionType of actual controller:Corporation
Name of actual controller | Legal representative/Company principal | Date of establishment | Organization code | Main business |
State-owned Assets Supervision and Administration Commission of Suqian | Zhao Xiaoli | 22 October 2005 | N/A | Execution of duty of state-owned enterprise's investor on behalf of the People's Government of Suqian and implementation of supervision managementonstate-owned assets and state-owned enterprises. |
Share holdings of the controlling shareholder in other listed companies at home or abroad during the reporting period. | N/A |
Change of the actual controller during the reporting period?Applicable √N/ANo such cases in the reporting period.Ownership and control relations between the actual controller and the Company
The actual controller control the company via trust or other ways of assets management?Applicable √ N/A
3.4 Other corporate shareholders with a shareholding proportionover10%
√Applicable ? N/A
Name of actual controller
Name of actual controller | Legal representative/Company principal | Date of establishment | Registered capital | Main business |
Jiangsu Blue Alliance Co., Ltd. | Cong Xuenian | 28 July 2016 | CNY 105,600,000.00 | Sales of daily products, research and development of biology technology, furniture production, Business management consulting service, fruit tree planting, Sales of prepackaging food. |
3.5 Limits on the Company’s shares held by its controlling shareholder,actual controller, restructuring party and other commitment entities.?Applicable √ N/A
Section VII Information about Preference Shares? Applicable √ N/ANo such cases in the reporting period
Section VIIIInformation about Convertible Bonds? Applicable √ N/ANo such cases in the reporting period
Section IX Profiles of Directors, Supervisory, Senior Management and Employees
1. Change in shares owned by directors, members of supervisory committee, senior management and
employees
Name
Name | Office title | Incumbent/ Former | Gender | Age | Start date of term | Termination date of term | Shares held at the period-begin (share) | Shares increased at the reporting period (share) | Shares decreased at the reporting period (share) | Other increase/decrease (share) | Shares held at the period-end (share) |
Zhang Liandong | Chairman of the board | Incumbent | Male | 53 | 23 February 2021 | 23 February2024 | 0 | 0 | 0 | 0 | 0 |
Zhong Yu | ViceChairman of the board,President | Incumbent | Male | 57 | 10 February 2015 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Li Minfu | Director | Incumbent | Male | 47 | 22May 2020 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Wang Kai | Director | Incumbent | Male | 44 | 19May 2017 | 23 February 2024 | 0 | 2,400 | 0 | 0 | 2,400 |
Liu Huashuang | Director,Vice President | Incumbent | Male | 51 | 29 January 2018 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Cong xuenian | Director | Incumbent | Male | 55 | 10 February 2015 | 23 February 2024 | 2,778,291 | 0 | 0 | 0 | 2,778,291 |
Zhou xinhu | Director,Vice President, Chief engineer | Incumbent | Male | 59 | 10 February 2015 | 23 February 2024 | 2,878,291 | 0 | 0 | 0 | 2,878,291 |
Zhao Shuming | Non-executiveDirector | Incumbent | Male | 69 | 23 February | 23 February | 0 | 0 | 0 | 0 | 0 |
Name
Name | Office title | Incumbent/ Former | Gender | Age | Start date of term | Termination date of term | Shares held at the period-begin (share) | Shares increased at the reporting period (share) | Shares decreased at the reporting period (share) | Other increase/decrease (share) | Shares held at the period-end (share) |
2021 | 2024 | ||||||||||
Nie Yao | Non-executiveDirector | Incumbent | Male | 44 | 23 February 2021 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Lu Guoping | Non-executiveDirector | Incumbent | Male | 61 | 23 February 2021 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Mao Lingxiao | Non-executiveDirector | Incumbent | Male | 57 | 23 February 2021 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Chen Taiqing | Chairman of supervisory committee | Incumbent | Male | 56 | 13July2020 | 23 February2024 | 0 | 0 | 0 | 0 | 0 |
Xu Youheng | Supervisor | Incumbent | Male | 44 | 23May 2019 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Xu Lili | Supervisor | Incumbent | Female | 42 | 23 February 2021 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Chen Fuya | Supervisor | Incumbent | Male | 56 | 6July 2020 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Chen Taisong | Supervisor | Incumbent | Male | 53 | 10 February 2015 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Lin Qing | Vice President | Incumbent | Female | 46 | 10 February 2015 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Name
Name | Office title | Incumbent/ Former | Gender | Age | Start date of term | Termination date of term | Shares held at the period-begin (share) | Shares increased at the reporting period (share) | Shares decreased at the reporting period (share) | Other increase/decrease (share) | Shares held at the period-end (share) |
Zheng Bujun | Vice President | Incumbent | Male | 54 | 10 February 2015 | 23 February 2024 | 60,000 | 0 | 15,000 | 0 | 45,000 |
Fu Hongbing | Vice President | Incumbent | Male | 59 | 17January 2020 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Yin Qiuming | Vice President, responsible person for accounting affairs | Incumbent | Male | 49 | 13July 2020 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Li Yuling | Vice President | Incumbent | Male | 51 | 13July 2020 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Lu Hongzhen | Secretary of the board | Incumbent | Female | 43 | 23February 2021 | 23 February 2024 | 0 | 0 | 0 | 0 | 0 |
Wang Yao | Chairman of the board | Former | Male | 56 | 10 February 2015 | 23 February 2021 | 30,002 | 0 | 0 | 0 | 30,002 |
Han Feng | Director | Former | Male | 59 | 10 February 2015 | 24April 2020 | 0 | 0 | 0 | 0 | 0 |
Xu Zhijian | Non-executiveDirector | Former | Male | 57 | 10 February 2015 | 23 February 2021 | 0 | 0 | 0 | 0 | 0 |
Cai Yunqing | Non-executiveDirector | Former | Female | 69 | 10 February 2015 | 23 February 2021 | 0 | 0 | 0 | 0 | 0 |
Ji Xueqing | Non-executiveDirector | Former | Male | 50 | 10 February 2015 | 23 February 2021 | 0 | 0 | 0 | 0 | 0 |
Name
Name | Office title | Incumbent/ Former | Gender | Age | Start date of term | Termination date of term | Shares held at the period-begin (share) | Shares increased at the reporting period (share) | Shares decreased at the reporting period (share) | Other increase/decrease (share) | Shares held at the period-end (share) |
Chen Tongguang | Non-executiveDirector | Former | Male | 55 | 10 February 2015 | 23 February 2021 | 0 | 0 | 0 | 0 | 0 |
Feng Pantai | Chairman of supervisory committee | Former | Male | 61 | 10 February 2015 | 8July 2020 | 5,677,986 | 0 | 0 | 0 | 5,677,986 |
Zhou Wenqi | Supervisor | Former | Female | 55 | 10 February 2015 | 23 February 2021 | 0 | 0 | 0 | 0 | 0 |
Zhu Wei | Vice President | Former | Male | 44 | 10 February 2015 | 18 January 2020 | 0 | 0 | 0 | 0 | 0 |
Total | 11,424,570 | 2,400 | 15,000 | 0 | 11,411,970 |
2. Changes in directors,supervisors, senior management and employees
√Applicable ? N/A
Name | Office title | Type | Date | Reason |
Han Feng | Director | Former | 24 April 2020 | Job transfer |
Feng Pantai | Chairman of supervisory committee | Former | 8 July 2020 | Job change |
Zhu Wei | Vice President | Former | 18 January 2020 | Personal reason |
3. Employment information
Professional background, work experience and major duties of directors, supervisors and senior management
3.1 Directors
Mr. Zhang Liandong, born in September 1968, a Party school postgraduate. He was a Party organization committee member ofZhikouVillage,Suqian,aParty organization committee member of Sucheng Town, Sucheng District, a vice secretary of Party working committee and a secretary ofdiscipline working committee,an office director in Xingfu Street, Sucheng District, an office director and a secretary of Party working committee inXiangli Street, Sucheng District, a management committee director of economic development zone, a vice secretary of Party working committee, adirector of Suqian Direct Merchants Bureau,a deputy district head of Sucheng Direct, a member of Standing Committee of Sucheng DistrictCommittee, a secretary of Party working committee of Sucheng economic development zone, a deputy secretary of Suqian Municipal Government, adirector of Suqian Urban Management Bureau, a deputy secretary of the Party leadership group, a deputy general secretary of Suqian MunicipalGovernment (department level), a secretary of the Party working committee of Yanghe New District, Suqian.At present, he is the chairman and deputysecretary of Party committee of the Company, the chairman of Shuanggou Distillery, and the executive director of Jiangsu Shuanggou Distillery SalesCo., Ltd.
Mr. Zhong Yu, born in May 1964, Master degree, senior engineer, Master of Chinese Liquor and Jiangsu 13
thNPC member. He was adirector oftechnology and environmental protection department inShuanggou Distillery; a vice chief engineer, a president assistant and a director of productionand technology center of Shuanggou Distillery;a vicegeneral manager of Yanghe Branch of the Company;a brewing director, a president assistant, avice president of the Company, a general manager of Siyang Branch of the Company. At present, he is a vicechairman of the board, the president, thevice secretary of the party committee, the general manager of Yanghe Branch of the Company.
Mr.Li Minfu, born in October 1974, Master degree. He was a member of the standing committee of the Sucheng District Committee, a secretary of theParty working committee of the Sucheng Economic Development Zone, an executive deputy district head, a member of the standing committee ofSiyang County Committee, an executive deputy county chief, etc. At present, he is the director of the Company, the secretary of Party committee andchairman of Suqian Industrial Development Group Co., Ltd., the chairman of Jiangsu Yanghe Group Co., Ltd., and the chairman of JiangsuShuanggou Group Co., Ltd.
Mr. Wang Kai, born in August 1977, Bachelor degree, Intermediate Economist. He is a brand department manager of marketing center of ShanghaiTobacco Group Co., Ltd., a general manager assistant of Shanghai Haiyan Logistics Development Co., Ltd.. At present, he is the director of theCompany and the vice general manager of Shanghai Haiyan Logistics Development Co., Ltd..
Mr. Liu Huashuang, born in December 1970, MBA from Fudan University, accountant. Hewas a director of marketing department and a deputy general manager of JiangsuYanghe Distillery, a general manager of Yanghe Blue Classic, a general manager ofJiangsu Yanghe Distillery, a member of the standing party committee of Company, adirector of strategic studies, a vice executive general manager and a vice secretary ofparty committee of Jiangsu Su Wine Industrial Co., Ltd., a secretary of party committeeand a vice chairman of the board of Su Wine Trade Group. At present, he is the director,the vice executive president and a member of the standing party committee and thesecretary of the party committee and the chairman of Su Wine Trade Group.
Mr. Cong Xuenian, born in January 1966, Master degree, senior economist. He was achief accountant and finance director of Yanghe Distillery, a finance minister of YangheGroup, a chief accountant, a secretary of the board, a responsible person for accountingaffairs,a director and vice president of the Company. At present, he is the director, andthe chairman of the board of Blue Alliance.
Mr. Zhou Xinhu, born in August 1962, Master degree, senior engineer, a member of theexpert group of Baijiu professional committee of China Food Industry Association, andchief liquor taster of China, master of Chinese liquor critic and China craftsman of lightindustry. He was a technician of Yanghe Group,a director of quality inspectiondepartment and blending and storage department, a vice general manager of YangheDistillery, a vice chief engineer, a chief engineer and a vice president of the Company. Atpresent, he is the director, the vice president and the chief engineer of the Company.
Mr. Zhao Shuming, born in December 1952, Doctor. He was an officer, deputy chief,chief and deputy director of foreign affairs office in Nanjing University, an assistant to thePresident, associate professor, professor, senior professor, vice dean, dean of theBusiness School of Nanjing University. At present, he is the non-executive director of theCompany, senior professor/doctoral advisor in Nanjing University, honorary president ofBusiness School, at the same time as an vice president of Ministry of Education of MBAdiscipline education guiding committee, vice president of Chinese Research Council ofModern Management and China Society of Human Resource Development, excellentpart-time professor of University of Missouri-St. Louis, USA, visiting professor of DruckerSchool of Management, Claremont Graduate University, California, USA, president ofJiangsu Human Resources Association; non-executive director of Jiangsu Lianfa TextileCo., Ltd., Jsti Group Co., Ltd. and Nanjing Securities Co., Ltd.
Mr. Nie Yao, born in June 1977, doctoral candidate. He was a visiting scholar ofAdvanced Biotechnology and Medicine Center of Rutgers University (State University ofNew Jersey), an associate professor of Bioengineering College of Jiangnan University,and a non-executive director of Jinhui Liquor. At present, he is the non-executive directorof the Company and professor and deputy dean of Bioengineering School of JiangnanUniversity.
Mr.Lu Guoping, born in March 1960, Bachelor degree, Professor of accounting, CPA,Excellent educator in Jiangsu province. He was a lecturer, an associate professor and adirector of teaching and research office in Nanjing Agricultural University. At present, heis the deputy dean, professor and master tutor of Guofu Zhongshen College in NanjingAudit University, an accounting lecturer of CPA exam counseling in Jiangsu province,course director of advanced financial accounting in national-level MOOCs, coursedirector of advanced financial accounting in national first-class undergraduate courses,part-time professor of Network Teacher Training Center of the Ministry of Education, thenon-executive director of Langbo Technology, Huaxin New Materials, BaoshengTechnology and other companies.
Mr.Mao Lingxiao, born in January 1964, Bachelor degree, First-Grade Lawyer (Senior).He was an officer of Justice Department of Jiangsu Province, a full-time lawyer ofJiangsu International Economic and Trade Law Firm, a senior partner of Jiangsu LingxiaoLaw Firm, a senior partner of Jiangsu Jinding Law Firm, a senior partner and director ofJiangsu Tianzhe Law Firm, a full-time lawyer, senior partner, executive director of BeijingZhongyin (Nanjing) Law Firm. At present, he is the non-executive director of theCompany and a full-time lawyer, senior partner and chairman of partners' meeting ofBeijing Haotian Xinhe (Nanjing) Law Firm.
3.2 Supervisors
Mr. Chen Taiqing, born in May 1965, Master degree, Senior political engineer, member ofcommunist party of China. He was a member of the party committee of Yanghe Group,office director, member of the Company’s party committee, director of human resourcedepartment, director of integrated department, president assistant, vicegeneral managerof Yanghe Branch of the Company, vice general secretary of the Company’s partycommittee and discipline inspection committee of the Company, general secretary andgeneral manger of Shuanggou Distillery's party committee. At present, he is the chairmanof supervisory committee, vice secretary of the party committee, chairman of the laborunion .
Mr.Xu Youheng, born in March 1977, Master degree. He was a director of organizationdepartment, a director of cadre supervision department, a director of cadre educationdepartment, an officedirector,a vice officedirector of leading group for party constructionof Suqian municipal party committee. At present, he is the supervisor of the Company,the vice secretary of the party committee and vice general manager of Suqian IndustrialDevelopment Group Co., Ltd.
Ms.Xu Lili, born in March 1979, Bachelor degree. She was a secretary of the communistyouth league of Shanghai Jieqiang Tobacco Sugar & Wine (Group) Co.,Ltd., a marketingdepartment deputy manager of Shanghai Jieqiang Tobacco Sugar & Wine GroupDistribution Center, a deputy general manager of Shanghai Qinzhou Trade Co., Ltd., ageneral manager assistant of Shanghai Jieqiang Tobacco Sugar & Wine GroupDistribution Center, a deputy general manager, executive deputy general manager andgeneral manager of Shanghai Jieqiang Tobacco Sugar & Wine (Group) Chain Co.,Ltd. Atpresent, she is the supervisor of the Company, the general manager of Shanghai
Jieqiang Tobacco Sugar & Wine Group Distribution Co., Ltd., and Shanghai JieqiangFood Sales Co.,Ltd..
Mr.Chen Fuya, born in November 1965, Bachelor degree. He was a member of thestanding committee of the discipline inspection commission of Suqian, a office director ofParty conduct and government integrity, a departmental-level discipline inspectionsupervisor of the discipline inspection commission of Suqian, a deputy secretary of theParty committee and a secretary of the discipline inspection commission of the Company.At present, he is the supervisor, deputy secretary of the party committee and secretary ofthe discipline inspection commission of the Company.
Mr. Chen Taisong, born in January 1968, Master degree. He was a officer andsecretaryof Siyang Legal Bureau, and an office secretary,deputychief, chief, director assistant,deputydirector of Siyang government, alcalde and secretary of the party committee ofChuancheng Town in Siyang country, deputysecretary of the party committee andsecretary of discipline inspection commission and chairman of the supervisory committeeof Su Wine Industrial Co., Ltd., deputysecretary of discipline inspection committee of theCompany. At present, he is the supervisor, a member of standing committee, director oforganization department of the Company;deputysecretary of the party committee andsecretary of discipline inspection committee and chairman of the supervisory committeeof Su Wine Trade Group.
3.3 Senior management
Mr. Zhong Yu, President of the Company, resume as above.Mr. Liu Huashuang, Executive president of the Company, resume as above.Mr. Zhou Xinhu, vice president of the Company, resume as above.Ms. Lin Qing, born in May 1975, Master degree, senior accountant, CPA. She was avicedirector of enterprise department of Suqian Finance Bureau, a director assistant ofSuqian Price Bureau, a member and a vice director of the party committee of NationalDevelopment and Reform Commission, a member of the standing committee of theCompany, a vice president of the Company. At present, she is thevice president of theCompany and director of the internal audit institution, a member of the standingcommittee of the Company, and vice chairman of the board of Su Wine Trade Co.,Ltd.
Mr. Zhen Bujun, born in January 1967, MBA, senior engineer. He was ageneral managerof Yanghe Group, general manager of Suqian State-owned Investment Co., Ltd.,vicegeneral manager of Shuanggou Distillery, director and president assistant of logisticsandpurchasing department of the Company. At present, he is a vice president, a memberof the standing committee of the Company, general manager and secretary of the partycommittee of Siyang Branch of the Company.
Mr. Fu Hongbing, born in January 1962, Chinese liquor craft master, senior winemaker.He has won many honors, such as "National May Day Labor Medal", "Jiangsu ProvinceMay Day Labor Medal" and "Advanced Science and Technology Leader" of China Food
Industry Science and Technology Progress. He wasa director of management and qualitydepartment of Jiangsu Yanghe Group Co., Ltd., a vice chief engineer of the Company,director of the quality department, a general manager assistant of Yanghe Branch, adirector of the quality department, a vice general manager, a president assistant of theCompany, and the chairman of the board of Guizhou Guijiu Group Co., Ltd. At present,he is the vice president of the Company, the chairman of the board and secretary of theparty committee of Guizhou Guijiu Group Co., Ltd.
Mr.Yin Qiuming, born in July 1972, College degree, auditor. He was an assistant directorof audit, director of audit, deputy secretary of discipline inspection commission of JiangsuYanghe Group Co., Ltd., director of the Company’s management department, deputygeneral manager of Jiangsu Yanghe Sales Co., Ltd., deputy general manager of JiangsuYanghe Liquor Co., Ltd., a member of Party committee, director of Finance, supervisor ofthe Company and deputy secretary of discipline inspection commission, deputy generalmanager, finished product dispatching director, the responsible person for accountingaffairs, CFO, general manager of finance center of Yanghe Branch. At present, he is thevice president of the Company, a member of the Party committee and the responsibleperson for accounting affairs.
Mr. Li Yuling, born in December 1980, Nanjing University MBA, Intermediate economist.He was a assistant director of supply department, assistant director of financedepartment, deputy chief dispatcher of general dispatching office, director of supplydepartment, assistant general manager of Yanghe branch, director of procurement andsupply logistics, supply chain management director, deputy director of procurement andsupply logistics center and office director. At present, he is the vice president of theCompany, a member of the Party committee, the secretary of the Party committee andgeneral manager of Shuanggou Distillery.
Ms. Lu Hongzhen, born in October 1978, Bachelor degree, a member of ChinaAssociation for the Promotion of Democracy and has obtained the Board SecretaryQualification Certificate issued by Shenzhen Stock Exchange. On September 2001, shejoined Jiangsu Yanghe Group Co., Ltd., serving successively as office secretary, deputydirector of the comprehensive department, deputy office, deputy director of the securitiesdepartment and representative of securities affairs. At present, she is a secretary of theboard and director of the securities department of the Company.
Position in shareholder-holding companies
√ Applicable ? N/A
Name
Name | Name of shareholder holding companies | Positionin shareholder holding companies | Beginning date of office term | Ending date of office term | Anyremunerationsreceivedfrom shareholder holding companies |
Cong Xuenian | Jiangsu Blue Alliance Co., Ltd. | Chairman of the board | 31March2021 | Yes | |
Wang Kai | Shanghai Haiyan Logistics Development Co.,Ltd. | Vicegeneral manager | 1 March 2017 | Yes |
Name
Name | Name of shareholder holding companies | Positionin shareholder holding companies | Beginning date of office term | Ending date of office term | Anyremunerationsreceivedfrom shareholder holding companies |
Description of position in the shareholders’ unit | Nil |
Position in other companies
√ Applicable ? N/A
Name | Name of other companies | Position in other companies | Beginning date | Ending date | Anyremunerationsreceivedfrom other companies |
Zhao Shuming | Nanjing Shenghe Pharmaceutical Co., Ltd. | Non-executivedirector | 11 May2015 | Yes | |
Zhao Shuming | Jsti GroupCo., Ltd. | Non-executivedirector | 24April2015 | Yes | |
Zhao Shuming | Nanjing Securities Co., Ltd. | Non-executivedirector | 15November2018 | Yes | |
Zhao Shuming | Jiangsu Lianfa Textile Co., Ltd. | Non-executivedirector | 13 May 2020 | Yes | |
Zhao Shuming | Jiangsu Human Resources Association | President | 1 September2016 | No | |
Zhao Shuming | China Society of Human Resource Development | Vice president | 1 September2010 | No | |
Zhao Shuming | Education of MBA discipline education guiding committee | Vice president | 1 September2013 | No | |
Zhao Shuming | Chinese Research Council of Modern Management | Vice president | 2November2015 | No | |
Lu Guoping | Changzhou Langbo Sealing Technology Co., Ltd. | Non-executivedirector | 12October2015 | Yes | |
Lu Guoping | Jiangsu Huaxin New Materials Co., Ltd. | Non-executivedirector | 1March2016 | Yes | |
Lu Guoping | Baosheng Technology Innovation Co., Ltd. | Non-executivedirector | 9 May 2019 | Yes | |
Lu Guoping | Changzhou Academy of Architectural Sciences Co., Ltd. | Non-executivedirector | 28 June 2020 | Yes | |
Xu Lili | Shanghai Jieqiang Tobacco Sugar & WineGroup Distribution Co., Ltd. | General manager | 14 July 2020 | Yes | |
Xu Lili | Shanghai Jieqiang Food Sales Co., Ltd. | General manager | 14 July 2020 | Yes |
Punishments imposed in the recent three years by the securities regulators on theincumbent directors, supervisors and senior management as well as those who left in thereporting period? Applicable √ N/A
4. Remuneration of directors, supervisors and seniormanagementThedecision-making procedures, decision basis and actual remuneration payment ofdirectors, supervisors and senior management.
Decision-making procedures: Implementation is based on the "Trial ImplementationMeasures for the Annual Salary of General Manager (Revision)” approved by the 9
th
meeting of the second board of directors on 29 December 2008 and "TrialImplementation Measures for the Annual Salary of Chairman of the Board (Revision)”approved by the first extraordinary general meeting of shareholders on 18 January 2009.
Decision basis: Based on the Company's operating conditions and considering thestandard of regional economic, industry and market.
Actual remuneration payment: Based on the performance and payment on timeaccording to the salary system.
Remuneration of directors, supervisors and senior management during the reportingperiod
Unit: CNY0,000
Name
Name | Position | Gender | Age | Incumbent/ Former | Total before-tax remuneration from the Company | Remuneration from related parties of the Company |
Zhang Liandong | Chairman of the board | Male | 53 | Incumbent | 0 | No |
Zhong Yu | Vice Chairman of the board,President | Male | 57 | Incumbent | 135.15 | No |
Li Minfu | Director | Male | 47 | Incumbent | 0 | Yes |
Wang Kai | Director | Male | 44 | Incumbent | 0 | Yes |
Liu Huashaung | Director,executivePresident | Male | 51 | Incumbent | 104.37 | No |
Cong Xuenian | Director | Male | 55 | Incumbent | 105.94 | No |
Zhou xinhu | Director, Vice President, Chief Engineering | Male | 59 | Incumbent | 105.64 | No |
Zhao Shuming | Non-executive Director | Male | 69 | Incumbent | 0 | No |
Nie Yao | Non-executive Director | Male | 44 | Incumbent | 0 | No |
Lu Guoping | Non-executive Director | Male | 61 | Incumbent | 0 | No |
Mao Lingxiao | Non-executive Director | Male | 57 | Incumbent | 0 | No |
Chen Taiqing | Chairman of supervisory committee, Chairman of labor union | Male | 56 | Incumbent | 103.01 | No |
Xu Youheng | Supervisor | Male | 44 | Incumbent | 0 | Yes |
Xu Lili | Supervisor | Female | 42 | Incumbent | 0 | Yes |
Chen Fuya | Supervisor | Male | 56 | 104.57 | No |
Description of position in the shareholders’ unit | Nil |
Name
Name | Position | Gender | Age | Incumbent/ Former | Total before-tax remuneration from the Company | Remuneration from related parties of the Company |
Chen Taisong | Supervisor | Male | 53 | Incumbent | 99.97 | No |
Lin Qing | Vice President | Female | 46 | Incumbent | 108.59 | No |
Zhen Bujun | Vice President | Male | 54 | Incumbent | 104.77 | No |
Fu Hongbing | Vice President | Male | 59 | Incumbent | 105.8 | Yes |
Yin Qiuming | Vice President, responsible person for accounting affairs | Male | 49 | Incumbent | 98.23 | No |
Li Yuling | VicePresident | Male | 51 | Incumbent | 96.89 | No |
Lu Hongzhen | Secretary of the board | Female | 43 | Incumbent | 17.36 | No |
Wang Yao | Chairman of the board | Male | 56 | Former | 135.09 | No |
Han Feng | Director | Male | 59 | Former | 0 | Yes |
Xu Zhijian | Non-executive Director | Male | 57 | Former | 6 | No |
Cai Yunqing | Non-executive Director | Female | 69 | Former | 6 | No |
Ji Xueqing | Non-executive Director | Male | 50 | Former | 6 | No |
Chen Tongguang | Non-executive Director | Male | 55 | Former | 6 | No |
Feng Pantai | Chairman of supervisory committee | Male | 61 | Former | 96.91 | No |
Zhou Wenqi | Supervisor | Female | 55 | Former | 0 | Yes |
Zhu Wei | VicePresident | Male | 44 | Former | 55.63 | No |
Total | 1,601.92 |
Share incentives for directors, supervisors and senior executives in the reporting period? Applicable √N/A
5. Staff in the Company
5.1 Number, functions and educational backgrounds of the staff
Number of in-service staff of the Company | 7,116 |
Number of in-service staff of main subsidiaries | 8,715 |
Total number of in-service staff | 15,831 |
Total number of staff with remuneration during this period | 15,831 |
Number of retirees to whom the Company or its main subsidiaries need to pay retirement pension | 0 |
Functions | |
Function by category | Number of staff |
Production personnel | 6,073 |
Sales personnel | 5,644 |
R&D personnel | 1,854 |
Financial personnel | 226 |
Administrative personnel | 1,821 |
Inner retired personnel | 213 |
Total | 15,831 |
Educational backgrounds | |
Educational background by category | Number of staff |
Master | 284 |
Bachelor | 3,843 |
Junior college | 4,380 |
Senior high school and below | 7,324 |
Total | 15,831 |
5.2 Staff remuneration policy
The remuneration consists of basic payments, performance-related payments and benefitfloat award. The Company implemented the mechanism of position self-promotion, and
prepared the Management Measures for Position Self-promotion. In respect of quantity,quality, efficiency and economic value of the work, the Company furtherimprovedaquantified and assessable quantitative and qualitative indicators. It encouragesemployees to be spontaneous and to improve their work efficiency. It further improvesthe Company's management level, and achieves a win-win situation between theCompany and employees
5.3 Staff training plans
In 2020, the training work closely around the Company's annual meeting, in the form ofproject scheme,were carry out for senior and middle-level mangers, strategic reservetalents, Geshibai talents, Yanghe university lecturers, to improve leadership of senior andmiddle-level management personnel and strategic reserve talent capacity, ability toenhance performance and improve performanceincrease, professional knowledgelearning of Geshibai technical personnel,the course development and teaching ability ofthe lecturers of Yanghe University.The Company innovatively organized training activitiessuch as reading activities, teacher-led apprentices, and new employee induction. A totalof 846 training sessions were organized throughout the year, with 62,670 participants,and 381 action results, among which 37 first-prize projects, 35 second-prize projects and34 third-prize projects were evaluated for the improvement of all staff.
5.4 Labor outsourcing
? Applicable √ N/A
Section X Corporate Governance
1. Basic situation of corporate governance
The Company constantly optimizes themodern enterprise system and corporategovernance structurewith actual development of the Company, strictly in accordancewiththe Corporate Law, the Securities Law, The Listed Company Governance Standards,Rules Governing Listing of Stocks on Shenzhen Stock Exchange and Guidelines onStandard Operation of SME Board Listed Companies on Shenzhen Stock Exchange andother relevant laws and regulations. During the reporting period, the Company operatesnormatively with sound corporate governance. The situation of corporate governance ofthe Company meets the requirements of authority files of listed company corporategovernance by CSRC.
1.1. Shareholders and shareholders’ general meeting
The shareholders' meeting of the Company has clear responsibilities, clear rules ofprocedure and effective implementation. According to the regulations such as Articles ofIncorporationandCompany Rules of Procedure of The Shareholders’ General Meeting,theCompany convenes and holds the shareholders’ general meeting and discussesbusiness affairs in the meeting normatively.The Company can treat all shareholdersequally, and especially makes minority shareholders have equal status and fully exercisetheir own power. The board carried out all the decisions made by the annual meeting ofshareholders carefully.
1.2. Directors and board of directors
The responsibilities of the board of directors are clear and all the directors can performtheir duties conscientiously and responsibly. The directors are elected carefully under theregulations of the Corporate Law and Articles of Incorporation. The board of theCompany consists of 11 directors including 4 non-executive directors. The structure ofthe board of directors satisfies the requirements of laws and regulations. The boarddiscusses business affairs according to Corporate Law and Articles of Incorporation. Allthe directors are able to attend the meeting and take responsibilities diligently accordingto the Discussion Rules of the Board of Directors, The Working System of Non-executiveDirectors, and other rules. All the directors seriously consider proposals and makescientific and reasonable decisions for significant events. They also protect the legalinterests of the Company and all shareholders. Strategy Committee, NominationCommittee, Audit Committee, Remuneration and Appraisal Committee are fourprofessional committees set under the board. The Committees have clear division ofwork and responsibilities and fully play professional role to offer scientific andprofessional suggestions for the decision-making of the board.
1.3. Supervisors and board of supervisors
The duties of the board of supervisors are clear and all the supervisors can perform theirduties conscientiously and responsibly. The supervisors are elected according to theCorporate Law and the Articles of Incorporation. The board of supervisors of theCompany consists of 5 supervisors, including 2 staff representative supervisors. The
structure of the board of supervisors satisfies the requirements of laws and regulations.The board of supervisors discusses business affairs according to corporate law andarticles of incorporation. Supervisors can attend the meeting according to therequirements of Rules of Discussion Rules of the Board of Supervisors. They takes theirown responsibilities seriously, supervises and makes independent suggestions for theCompany’s significant events, financial conditions and the duties of directors andpresident, thereby, protecting legal interests of the Company and shareholders.
1.4. Mechanism of evaluation and motivation
The appointment of directors, supervisor and senior managers is open and transparent,which satisfies the requirements of relevant regulations and laws. The fair andtransparent evaluation mechanism of the management has been built. During thereporting period, the management carried out the performance assessment according tothe goal of annual operation plan. The management takes their responsibilities seriouslyand fulfills the duties.
1.5. Relationship between controlling shareholders and listed companyAccording to the requirement of the Company Law, the controlling shareholders takeduties and rights of sponsor. The Company and the controlling shareholders implementindependent accounting of personnel, assets, finance, organizations and business. Theytake responsibilities and risks separately.During the reporting period, controllingshareholders have no priority beyond the rights of shareholders’ general meeting todirectly and indirectly affect the decision-marking and operation of the Company. There isno situation that controlling shareholders damage the legal interests of othershareholders. There is no significant related party transaction between the Company andthe controlling shareholders. There is no situation that controlling shareholders occupythe funds of the listed company and the listed company tenders guarantee for controllingshareholders and the subsidiaries.
1.6. Investors relationship management
The Company focuses on the management of investors relationship to protect legal rightsof investors. Except for the duties like diligence or honesty, the chairman of the board,the president, the board secretary has good communications and interactions withinvestors through reception of investor investigation and participating in performanceexplanation session and broker strategy meeting online. As the professional organizationfor investor relationship management, the securities department strengthens thecommunication with investors through telephone, email and irm.cninfo.com.cn. It fullymakes sure that investors have right to know and protects their legal interests.
1.7. Stakeholders, environmental protection and social responsibility
The Company fully respects and protects legal interests of stakeholders and fulfills theduties of social responsibility. The Company strengthens the awareness of socialresponsibility and achieves the interest balance among society, government,shareholders, company, employees,etc. They jointly promote the harmonious and steady
development of the Company. The Company advocates the governance concept of"green brewery and ecological enterprise", and integrates ecological and environmentalprotection requirements into the Company's development strategy and corporategovernance process. While maintaining the sustainable development, the Companyactively participates in social public welfare and takes social responsibilities.
1.8. Information disclosure and transparency
The information disclosure of the Company is implemented according to therequirements of supervision departments. The Company seriously implements the rulesincluding Information Disclosure Management Rule and Investors RelationshipManagement Rule. The Company enhances the management of information disclosureaffairs and takes responsibility of information disclosure legally and carefully, achievingthe accuracy, integrity, fairness, timeliness of information disclosure. The information canbe equally obtained by all shareholders.
1.9. Methods of improving internal control system constructionThe Company keeps on enhancing the corporate governance and the internal controlsystem, which improves the management to a higher level. The Audit Committee fullyexamines and supervises the financial condition,the efficiency of internal control,theefficiency and rationality of corporate governance. The audit department of the Company,as an internal audit unit, carries out regular and continuous examination on perfectionand implement situation of internal control system. It finds the Internal control defects andimproves deficiencies timely, thus the effectiveness of internal control can be guaranteed.The operation management and anti-risk capacity are enhanced.
Any significant variancesbetween the normative documents issued by the CSRCsupervising the corporate governance of listed companies and the actual state of theCompany’s corporate governance.?Yes√ NoNo such cases in the reporting period.
2. Independency of businesses, personnel, assets,organizations and finance which are separate from thecontrolling shareholder
2.1. In the aspect of business
The Company has independent and integrated business structure and the ability tooperate independently in the market. There is no peer competition between controllingshareholders and the Company. Besides, there is no such kind of situation thatcontrolling shareholders intervene with operation of the Company directly or indirectly.
2.2 In the aspect of personnel
The Company has built independent personnel management system and salarymanagement system. Furthermore, the Company signed labor contracts withemployees,chairman of the board, the president, vicepresident, the board secretary and
the responsible person for the Company’s financial affairs obtain compensation from theCompany rather than the controlling shareholders. The directors, senior managers andsupervisors do not have positions illegally in other companies that have the same orsimilar business.
2.3 In the aspect of assets
There are clear property relations between the Company and controlling shareholders.The Company owns the independent land usage right and ownership of buildings. TheCompany independently registers and manages the properties with setting up accountsand accounting treatment for them. There is no situation that the controlling shareholdersoccupy and control the assets of the Company or intervene the operation management ofthe assets.
2.4 In the aspect of organization
The Company has well-structured organization system, including the shareholders’general meeting, the board of directors, supervisory committee, the management andfunctional departments. Related internal management and control system is establishedfor clear division of function and interaction with each other. It forms an organic wholethat ensures the legal operation.There is no affiliation with functional departments ofcontrolling shareholders.
2.5 In the aspect of finance
Our company has completed and independent organization with professional financialemployees. Independent accounting system and financial management are established.The Company sets bank accountants, pays taxes and makes financial decisionsseparately. There is no situation that controlling shareholders intervene with the financialmanagement of the Company.
3. Horizontal competition
?Applicable √N/A
4. Annual meeting of shareholders and special meetings ofshareholders convened during the reporting period
4.1. Meetings of shareholders convened during the reporting period
Meeting
Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Disclosure index |
2019 Annual general meeting of shareholders | General meeting of shareholders | 78.61% | 22May 2020 | 23May 2020 | Announcement No. 2020-021, disclosed on www.cninfo.com.cn |
4.2. Special meetings of shareholders convened at the request ofpreference shareholders with resumed voting rights?Applicable √ N/A
5. Performance of non-executive directors during thereporting period
5.1. Attendance of non-executive directors in board meeting andmeeting of shareholders
Attendance of non-executive directors in board meeting
Attendance of non-executive directors in board meeting | |||||||
Non-executive director | Presence due in the reporting period(times) | Presence on site(times) | Presence by telecommunication(times) | Presence through a proxy(times) | Absence(times) | Absence for two consecutive times | Presence(times) |
Xu Zhijian | 6 | 4 | 2 | 0 | 0 | No | 1 |
Cai Yunqing | 6 | 4 | 2 | 0 | 0 | No | 1 |
Ji Xueqing | 6 | 4 | 2 | 0 | 0 | No | 1 |
Chen Tongguang | 6 | 4 | 2 | 0 | 0 | No | 1 |
Explanation of absence of non-executive directors in meetings of the board for twiceN/A
5.2. Objections from non-executive directors in related issues of thecompanyWhether there are any objections on related issues of the Company from non-executivedirectors? Yes √ NoNo such cases in the reporting period.
5.3. Other details about the performance of duties by non-executivedirectorsWhether there are any suggestions from non-executive directors adopted by theCompany?
√ Yes ? No
Explanation about suggestions of non-executive directors is adopted by the Company ornotCompany adopted the reasonable suggestionsbynon-executive directors.
6. Performance of duties by special committees under thebroad during the reporting period
1).During the reporting period, the Strategic Committee held 1 meeting. It investigated2019 the board work report in advance, made the 2020 annual work plan, offeredscientific and reasonable suggestions and fulfilled the duties.
2).During the reporting period, the Nominations Committee held 3 meeting. It examinedthe qualification of Candidates nominatedfordirectors and senior management to beappointed. The committee fulfilled the duties.
3).During the reporting period, the Audit Committee held 4 meetings. It earnestly urgedthe internal audit department to carry out daily audit and special audit, strictly examinedthe implementation of internal control system related to financial report and dailyoperation, and actively coordinated and supervised the audit and reappointment ofaccountants. The committee fulfilled the duties.
4).During the reporting period, the Remuneration and Appraisal Committee held 1meeting. It examinedand supervised the salary of directors, senior managers andremuneration performance in 2019.The information disclosure of the Company about thesalary of directors and senior managers is correct and true and as the same as theexamination in 2019.The committee fulfilled the duties.
7. Performance of duties by the supervisory committeeWhether there are any risks to the Company identified by supervisory committee whenperforming its duties during the reporting period.? Yes √ NoNo such cases in the reporting period.
8. Evaluation and motivation mechanism for the senior managementAt the beginning of the establishment of the evaluation and motivation mechanism, it wasexplicitly illustrated in Trial Implementation Measures for the Annual Salary of GeneralManager (Revision). The evaluation and motivation of senior managers are mainlyreflected in annual salary system. The board of directors evaluates and motivates thesenior managers mainly according to the satisfaction of clients, safety index, quality indexand financial index. The management implements the annual salary system. The basicpart of annual salary is paid monthly on average and the remaining part will be paid atthe end of the year according to the results of evaluation. If it does not reach theevaluation index, the remaining parts will not be paid. In 2020, based on the above rules,the Remuneration and Appraisal Committee examined the situation of the management’sperformance in 2019.
9. Internal control
9.1. Significant internal control deficiencies found in the reportingperiod
? Yes √ No
9.2. Internal control self-assessment report
Disclosure date of the internalcontrol self-assessment report
Disclosure date of the internal control self-assessment report | 29 April 2021 |
Disclosure index of the internal control self-assessment report | The internal control self-assessment report disclosed on www.cninfo.com.cn on 29 April 2021 |
Ratio of the total assets of the appraised entitles to the consolidated total assets | 99.27% |
Ratio of the operating revenues of the appraised entitles to the | 100.00% |
consolidated operating revenue
consolidated operating revenue | ||
Defect identification standard | ||
Type | Financial-report related | Non-financial-report related |
Qualitative standard | (1) The indicators of significantdeficiencies of financial report including :i. Corrupt transaction of directors,senior managers and supervisors;ii. The management cannot figure out the significant misstatement during the operation process of operation, but these misstatements are found by others ;iii. Based on the results of evaluation of internal control, the significantdeficienciesare not rectified;iv. Audit Committee and Internal Audit Agency are not effective in supervising the internal control.(2) The indicators ofmaterialdeficiencies including:i. Accounting policy has not been chosen or used under the general accepted accounting principles;ii. The anti-fraud program and control measures have not been built;iii. The controlling system or compensation system of accounting treatment of irregular or special trade has not formed;iv. The control of the process of financial reporting at the period end exist the situation that one or more deficiencies are found and the veracity and accuracy cannot be proved.(3) general control deficiencies refer to the other control defects except for significant defects and important defects above. | If condition below appears, it can be considered as significantdeficiencies, others can be divided into material defect or general defect according to impact extent.:(1) The Company suffer from serious mistakes and major property loss due to lake of democratic decision-making procedures or unscientific procedures;(2) Violate national regulations and laws seriously;(3) Lake of important management system or it doesn’t work;(4) Significant or materialdeficiencies of internal control cannot be regulated in time;(5)Materialdeficiencies of internal control appear continuously or in quantity. |
Quantitative standard | Significantdeficiencies:Misstatement> 3% of total operating revenue;Misstatement > 5% of gross profits;Misstatement > 2% of total assets. Materialdeficiencies:1% of total operating revenue < Misstatement≤3% of total operating revenue;3% of gross profits< Misstatement≤5% of gross profits; 1% of total assets< Misstatement≤2% of total assets. Generaldeficiencies: Misstatement≤1% of total operating revenue; Misstatement≤3% of net profits;Misstatement≤1% of total assets | Significantdeficiencies:ratio of loss of total assets≥1%. Materialdeficiencies: 0.5%≤ratio of loss of total assets<1% Generaldeficiencies:ratio of loss of total assets<0.5% |
Number of financial-report significant defects | 0 | |
Number of non-financial-report significant defects | 0 | |
Number of important financial-report related defects | 0 | |
Number of important Non-financial-report related defects | 0 |
10. Auditor’s report on internal control
N/A
Section XI Information about Corporate Bond
Whether there exists a public issue and listing of corporate bond that is not yet due orfailed to be redeemed at the date of the financial report authorized.No
Section XII Financial ReportI.Auditor’s report
Type of audit report
Type of audit report | Standard and unqualified opinion |
Date of signature | 27 April 2021 |
Name of Audit | Suya Jincheng Certified Public Accountants LLP |
No. of auditor’s report | Suya Audit [2021] No.735 |
Names of auditors | Li Laimin, Li Yan |
Auditor’s Report
To the shareholders of Jiangsu Yanghe Distillery Co., Ltd.:
Opinion
We have audited the financial statements of Jiangsu Yanghe Distillery Co., Ltd.(hereinafter referred to as the “Company”), which comprise the consolidated balancesheet and balance sheet as at 31 December 2020, consolidated income statement andincome statement, consolidated cash flow statement and cash flow statement,consolidated statement of changes in owners' equity and statement of changes inowners' equity for the year then ended and notes to the financial statements.In our opinion, the attached financial statements are prepared, in all material respects, inaccordance with Accounting Standards for Business Enterprises and present fairly thefinancial position of the company as at 31 December 2020 and its operating results andcash flow for the year then ended.
Basis for opinionWe conducted our audit in accordance with China Standards on Auditing (“CSAs”) forCertified Public Accountants. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Codeof professional ethics for Certified Public Accountants in China (“the Code”), and we havefulfilled our other ethical responsibilities in accordance with the Code. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key audit mattersKey audit matters are those matters that, in our professional judgment, were of mostsignificance in our audit of the consolidated financial statements of the current period.These matters were addressed in the context of our audit of the consolidated financialstatements as a whole and, in forming our opinion thereon, and we do not provide aseparate opinion on these matters.
1.Recognition of revenue
1.Recognition of revenue | |
Please refer to Significant accounting policies and accounting estimates, and Notes to the main items of the consolidated financial statements. | |
Key audit matters | How our audit addressed the key audit matter |
The Company’s specific condition of revenue recognition is that revenue is recognized after customer acceptance based on transfer of control. In 2020, the Company’s annual operating revenue was CNY21.101 billion. The amount substantial and operating revenue is an important component of income statement. Therefore, we identified operating revenue as a key audit matter. | Our procedures in relation to revenue recognition included: (1)Understood, tested and evaluated the effectiveness of internal control of sales and cash receipts cycle designed and executed by the management. (2)Through sampling inspection of the sales contract, identified the contractual rights and obligations, evaluated the point of time of performance obligations and evaluated whether the judgment of the transfer of control related to revenue recognition conforms to the Company's accounting policies and Accounting Standards for Business Enterprises. (3)Judged whether there is an abnormal fluctuation of revenue in the reporting period with the analytic review of revenue and gross profit margin in combination with product category. (4)Sampling inspection of supporting documents related to revenue recognition including sales contracts or orders, invoices, delivery lists or receiving reports, shipping lists and bank slips. (5)Implemented the external confirmation of selected major franchisers and inspected the payback of account receivables after the reporting period in combination with audit of accounts receivable and contract liabilities. (6)Sampling inspection of calculation and accounting treatment of sales discount and sales allowance (7)Chose samples from sales revenue records before and after the balance sheet date, inspected related supporting documents and evaluated whether the revenue recorded in the appropriate accounting period. |
2. Existence, valuation and allocation of inventories |
Please refer to Significant accounting policies and accounting estimates and Notes to the Main Items of the Consolidated Financial Statements. | |
Key audit matters | How our audit addressed the key audit matter |
As at 31 December 2020, the book value | Our procedures in relation to existence, |
of inventory is CNY 14.853 billion,accounting for 27.57% of the total assetsand 39.89% of all current assets. Thebook value of the inventories at year endis relatively large and accounts for arelatively large proportion of the totalassets at year end. Therefore, theexistence, valuation and apportionmentof inventories are identified as a key auditmatter.
of inventory is CNY 14.853 billion, accounting for 27.57% of the total assets and 39.89% of all current assets. The book value of the inventories at year end is relatively large and accounts for a relatively large proportion of the total assets at year end. Therefore, the existence, valuation and apportionment of inventories are identified as a key audit matter. | valuation, allocation of inventories included: (1)Understood and evaluated the effectiveness of management's design and implementation of inventory-related internal control. (2)Carried out the inventory analysis review procedure. (3)Implement stock-taking procedures at the end of the period. (4)Sample check of production cost calculation table and other cost accounting data, and conducted valuation test on inventory, and evaluated the accuracy of closing balance of inventory. (5)Obtained the calculation table of provision for stock obsolescence, conduct the inventory impairment test, reviewed the inventory impairment test process, and checked whether the provision for stock obsolescence is made sufficiently. |
Other information
The directors of the Company are responsible for the other information. The otherinformation comprises the information included in the annual report, but does not includethe financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read theother information and, in doing so, consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Responsibilities of directors and those charged with governance for thefinancial statements
The directors of the Company are responsible for the preparation of the financialstatements that give a true and fair view in accordance with the disclosure requirementsof Accounting Standards for Business Enterprises, and designing, implementing andmaintaining internal control that is necessary to ensure the financial statements are freefrom material misstatement, whether due to fraud or error.In preparing the financial statements, the directors are responsible for assessing theCompany’s ability to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unless thedirectors either intend to liquidate the Company or to cease operations, or have norealistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financialreporting process.
Auditor's responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement, whether due to fraud or error,and to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance, but is not a guarantee that an audit conducted in accordancewith CSAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if, individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken onthe basis of these financial statements.As part of an audit in accordance with CSAs, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
(1)Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.
(2)Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances.
(3)Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the directors.
(4)Conclude on the appropriateness of the directors’ use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company’sability to continue as a going concern. If we conclude that a material uncertainty exists,we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause the Company to cease tocontinue as a going concern.
(5)Evaluate the overall presentation, structure and content of the financial statements,including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
(6)Obtain sufficient and appropriate audit evidence regarding the financial information ofthe entities or business activities within the Company to express an opinion on thefinancial statements. We are responsible for the direction, supervision and performanceof the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters,the planned scope and timing of the audit and significant audit findings, including anysignificant deficiencies in internal control that we identify during our audit.We also provide the governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.From the matters communicated with the governance, we determine those matters thatwere of most significance in the audit of the consolidated financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
Suya Jincheng Certified Public Accountants LLPNanjing, China
Li LaiminCertified Public Accountant of China
Li Yan,Certified Public Accountant of China
27 April 2021
II.Financial statementsThe unit of statement in financial notes is: CNYPrepared by: Jiangsu Yanghe Distillery Co., Ltd.
Consolidated balance sheetAs at 31 December 2020
Unit: CNY
Item
Item | Balance as at 31 December, 2020 | Balance as at 31 December, 2019 |
Current assets: | ||
Cash and cash equivalents | 7,243,186,362.29 | 4,300,144,848.67 |
Settlement reserves | ||
Lending funds | ||
Financial assets held for trading | 14,301,978,905.17 | 17,976,767,209.45 |
Derivative financial assets | ||
Notes receivables | 613,496,333.71 | 659,266,780.81 |
Accounts receivables | 4,225,230.90 | 16,080,618.65 |
Account receivables financing | ||
Prepayment | 9,358,846.48 | 200,115,325.19 |
Premiums receivable | ||
Reinsurance accounts receivable | ||
Reinsurance contract reserve |
Other receivables
Other receivables | 30,318,938.67 | 37,521,590.52 |
Including:Interests receivable | ||
Dividends receivable | ||
Buying back the sale of financial assets | ||
Inventories | 14,852,694,146.30 | 14,433,244,696.27 |
Contract assets | ||
Assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | 182,837,070.99 | 183,119,654.47 |
Total current assets | 37,238,095,834.51 | 37,806,260,724.03 |
Non-current assets: | ||
Disbursement of loans and advances | ||
Investment in debt instruments | ||
Investment in other debt instruments | ||
Long-term receivables | ||
Long-term equity investments | 29,528,377.16 | 25,361,651.38 |
Investment in other equity instruments | ||
Other non-current financial assets | 6,366,958,225.81 | 5,050,851,671.16 |
Investment property | ||
Fixed assets | 6,882,953,634.34 | 7,256,557,503.85 |
Construction in progress | 223,468,482.24 | 263,153,505.12 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use asset | ||
Intangible assets | 1,713,526,693.10 | 1,747,134,144.14 |
Development expenses | ||
Goodwill | 276,001,989.95 | 276,001,989.95 |
Long-term deferred expenses | 127,071.76 | 254,143.60 |
Deferred tax assets | 925,921,403.51 | 825,064,057.57 |
Other non-current assets | 209,677,594.21 | 204,398,450.18 |
Total non-current assets | 16,628,163,472.08 | 15,648,777,116.95 |
Total assets | 53,866,259,306.59 | 53,455,037,840.98 |
Current liabilities: | ||
Short-term loans | ||
Borrowings from the central bank | ||
Loans from other banks | ||
Financial liabilities held for trading | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payables | 1,151,871,136.29 | 1,330,649,116.82 |
Advance from customer | 6,753,595,187.64 | |
Contract liabilities | 8,801,346,891.32 | |
Financial assets sold for repurchase | ||
Customer brokerage deposits | ||
Securities underwriting brokerage deposits | ||
Receivings from vicariously sold securities | ||
Employee benefits payable | 196,241,487.31 | 116,094,163.25 |
Taxes payable
Taxes payable | 2,152,806,156.43 | 1,815,288,006.47 |
Other payables | 1,556,699,290.45 | 6,521,146,762.07 |
Including:Interests payable | ||
Dividends payable | ||
Handling charges and commissions payable | ||
Reinsurance accounts payables | ||
Liabilities held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | 798,216,651.49 | |
Total current liabilities | 14,657,181,613.29 | 16,536,773,236.25 |
Non-current liabilities: | ||
Insurance contract reserves | ||
Long-term loans | 36,360.00 | 72,723.00 |
Bonds payable | ||
Including: Preference shares | ||
Perpetual bonds | ||
Lease liabilities | ||
Long-term payables | 197,049,341.93 | 197,623,728.85 |
Long-term payroll payables | ||
Accrued liabilities | ||
Deferred income | 85,999,500.00 | 89,756,500.00 |
Deferred tax liabilities | 456,339,414.38 | 139,259,083.16 |
Other non-current liabilities | ||
Total non-current liabilities | 739,424,616.31 | 426,712,035.01 |
Total liabilities | 15,396,606,229.60 | 16,963,485,271.26 |
Shareholders' equity | ||
Share capital | 1,506,988,000.00 | 1,506,988,000.00 |
Other equity instruments | ||
Including: preference shares | ||
Perpetual bonds | ||
Capital reserves | 741,532,550.13 | 741,532,550.13 |
Less: treasury stock | 1,002,128,680.79 | |
Other comprehensive income | -5,213,248.93 | -3,608,771.16 |
Special reserves | ||
Surplus reserves | 753,494,000.00 | 753,494,000.00 |
General risk reserve | ||
Undistributed profits | 36,489,911,363.13 | 33,510,429,712.50 |
Total equity attributable to owners of the parent company | 38,484,583,983.54 | 36,508,835,491.47 |
Non-controlling interests | -14,930,906.55 | -17,282,921.75 |
Total owners' equity | 38,469,653,076.99 | 36,491,552,569.72 |
Total liabilities and owners' equity | 53,866,259,306.59 | 53,455,037,840.98 |
Legal representative: Zhang LiandongPerson in charge of accounting affairs: Yin QiumingPerson in charge of accounting department: Zhao Qike
Balance sheet of parent company
As at 31 December 2020
Unit: CNY
Item | Balance as at 31 December | Balance as at 31 December |
2020
2020 | 2019 | |
Current assets: | ||
Cash and cash equivalents | 5,713,353,085.92 | 3,741,676,596.22 |
Financial assets held for trading | 2,096,497,598.93 | 6,991,814,305.98 |
Derivative financial assets | ||
Notes receivables | 74,100,000.00 | 493,500.00 |
Accounts receivables | 387,657,700.12 | 900,252,229.11 |
Account receivables financing | ||
Prepayment | 84,206,238.58 | 110,564,280.51 |
Other receivables | 10,403,769,305.69 | 8,154,899,373.55 |
Including:Interests receivable | ||
Dividends receivable | 1,775,818,203.33 | |
Inventories | 10,343,443,087.16 | 10,476,945,420.09 |
Contract assets | ||
Assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | 303,163.88 | |
Total current assets | 29,103,027,016.40 | 30,376,948,869.34 |
Non-current assets: | ||
Investment in debt instruments | ||
Investment in other debt instruments | ||
Long-term receivables | ||
Long-term equity investments | 7,964,291,378.23 | 7,964,291,378.23 |
Investment in other equity instruments | ||
Other non-current financial assets | 2,480,599,923.11 | 1,467,783,926.91 |
Investment property | ||
Fixed assets | 4,416,370,356.00 | 4,641,909,489.16 |
Construction in progress | 58,004,537.10 | 183,652,813.42 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use asset | ||
Intangible assets | 1,208,261,829.54 | 1,230,216,202.93 |
Development expenses | ||
Goodwill | ||
Long-term deferred expenses | ||
Deferred tax assets | 8,032,095.76 | 6,181,509.39 |
Other non-current assets | 173,867,010.21 | 170,318,838.68 |
Total Non-current Assets | 16,309,427,129.95 | 15,664,354,158.72 |
Total Assets | 45,412,454,146.35 | 46,041,303,028.06 |
Current liabilities: | ||
Short-term loans | ||
Financial liabilities held for trading | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payables | 839,199,956.37 | 1,066,947,279.95 |
Advance from customer | 16,238,064,053.40 | |
Contract liabilities | 10,764,681,770.37 | |
Employee benefits payable | ||
Taxes payable | 809,734,252.60 | 202,771,495.61 |
Other payables | 186,265,132.79 | 180,236,563.85 |
Including:Interests payable
Including:Interests payable | ||
Dividends payable | ||
Liabilities held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | 1,396,504,456.42 | |
Total current liabilities | 13,996,385,568.55 | 17,688,019,392.81 |
Non-current liabilities: | ||
Long-term loans | 36,360.00 | 72,723.00 |
Bonds payable | ||
Including:preference shares | ||
Perpetual bonds | ||
Lease liabilities | ||
Long-term payables | 144,254,229.73 | 144,680,616.65 |
Long-term payroll payables | ||
Provisions | ||
Deferred income | 5,000,000.00 | |
Deferred tax liabilities | 387,147,470.28 | 49,541,198.05 |
Other non-current liabilities | ||
Total non-current liabilities | 536,438,060.01 | 194,294,537.70 |
Total liabilities | 14,532,823,628.56 | 17,882,313,930.51 |
Owners' equity (or shareholders' equity) | ||
Share capital | 1,506,988,000.00 | 1,506,988,000.00 |
Other equity instruments | ||
Including: preference shares | ||
Perpetual bonds | ||
Capital reserves | 1,341,628,480.93 | 1,341,628,480.93 |
Less: treasury stock | 1,002,128,680.79 | |
Other comprehensive income | ||
Special reserves | ||
Surplus reserves | 753,494,000.00 | 753,494,000.00 |
Undistributed profits | 28,279,648,717.65 | 24,556,878,616.62 |
Total owners' equity | 30,879,630,517.79 | 28,158,989,097.55 |
Total liabilities and owners' equity | 45,412,454,146.35 | 46,041,303,028.06 |
Consolidated Income StatementFor the year ended 31 December 2020
Unit: CNY
Item | Year 2020 | Year 2019 |
1. Total operating revenue | 21,101,051,131.79 | 23,126,476,885.07 |
Including:Operating revenue | 21,101,051,131.79 | 23,126,476,885.07 |
Interest income | ||
Earned premium | ||
Fee and commission income | ||
2. Total operating costs | 13,773,294,252.09 | 14,457,584,017.39 |
Including: cost of sales | 5,851,904,596.71 | 6,626,362,251.24 |
Interest expense | ||
Handling charges and commission expenses | ||
Refunded premiums | ||
Net payments for insurance claims |
Net provision for insurance contracts
Net provision for insurance contracts | ||
Bond insurance expense | ||
Reinsurance expenses | ||
Taxes and surcharges | 3,415,645,769.03 | 3,201,479,826.09 |
Selling and distribution expenses | 2,603,804,157.78 | 2,691,711,170.59 |
General and administrative expenses | 1,729,080,201.93 | 1,856,491,727.00 |
Research and Development expenses | 260,094,291.03 | 159,965,593.88 |
Financial expenses | -87,234,764.39 | -78,426,551.41 |
Including:Interest expenses | 1,964.00 | 2,618.00 |
Interest income | 104,495,154.37 | 77,589,503.94 |
Plus: Other income | 98,969,626.89 | 84,977,755.15 |
Investment income ("-" for losses) | 1,206,683,362.49 | 850,554,207.62 |
Including: income from investment in associates and joint ventures | 3,940,820.47 | -4,447,288.34 |
Disposal of financial instruments at amortised cost ("-" for losses) | ||
Foreign exchange gains ("-" for losses) | ||
Net exposure to hedging gains("-"for loss) | ||
Gains from the changes in fair values (“-“ for losses) | 1,267,682,598.52 | 158,679,505.33 |
Losses from credit impairment ("-" for losses) | 246,482.45 | -18,956,346.26 |
Losses from asset impairment ("-" for losses) | -6,196,876.85 | -2,248,496.85 |
Gains from disposal of assets ("-" for losses) | 45,438.89 | 19,983,101.67 |
3. Operating profits ("-" for losses) | 9,895,187,512.09 | 9,761,882,594.34 |
Plus: non-operating income | 25,039,870.29 | 22,245,954.37 |
Less: non-operating expenses | 41,325,490.38 | 13,324,291.70 |
4. Total profits before tax ("-" for total losses) | 9,878,901,892.00 | 9,770,804,257.01 |
Less: income tax expenses | 2,394,295,578.08 | 2,384,713,341.80 |
5. Net profit ("-" for net loss) | 7,484,606,313.92 | 7,386,090,915.21 |
Classification by operating continuity | ||
Net profit from continuing operation ("-" for losses) | 7,484,606,313.92 | 7,386,090,915.21 |
Net profit from discontinued operation ("-" for losses) | ||
Classification by owners | ||
Attributable to owners of the parent company | 7,482,228,633.63 | 7,382,822,726.87 |
Attributable to non-controlling interests | 2,377,680.29 | 3,268,188.34 |
6.Net of tax from other comprehensive income | -1,630,142.86 | -2,228,748.45 |
Net of tax from other comprehensive income to the owner of the parent company | -1,604,477.77 | -2,238,030.31 |
Other comprehensive income cannot reclassified into the profit and loss: | ||
Including: Changes in remeasured defined benefit obligations | ||
Share in other comprehensive |
income that cannot be classified intoprofit and loss under equity method
income that cannot be classified into profit and loss under equity method | ||
Changes in the fair value of other equity instruments | ||
Fair value changes in enterprise's own credit risk | ||
Others | ||
Other comprehensive income that will be reclassified into the profit and loss | -1,604,477.77 | -2,238,030.31 |
Including: Share in other comprehensive income that will be classified into profit and loss under equity method | -342,416.50 | 178,619.29 |
Net gain on debt instruments at fair value through other comprehensive income | ||
Profit and loss of fair value changes of financial assets available for sale | ||
The amount of financial assets reclassified into other comprehensive income | ||
Hold-to-maturity investments are reclassified as gains and losses on financial assets available for sal | ||
Other debt investment credit impairment provision | ||
Cash flow hedging reserve | ||
Balance arising from the translation of foreign currency financial statements | -1,262,061.27 | -2,416,649.60 |
Others | ||
Net of tax from other comprehensive income to non-controlling interests | -25,665.09 | 9,281.86 |
7. Total comprehensive income | 7,482,976,171.06 | 7,383,862,166.76 |
Total comprehensive income attributable to owners of the parent company | 7,480,624,155.86 | 7,380,584,696.56 |
Total comprehensive income attributable to non-controlling interests | 2,352,015.20 | 3,277,470.20 |
8. Earnings per share | ||
(1) Basic earnings per share | 4.9843 | 4.8991 |
(2) Diluted earnings per share | 4.9843 | 4.8991 |
Where an enterprise is merged under the same control in the current period, the net profitrealized by the merged party before the merger is: CNY 0.00, and the net profit realizedby the merged party in the previous period is: CNY 0.00.Legal representative: Zhang LiandongPerson in charge of accounting affairs: Yin QiumingPerson in charge of accounting department: Zhao Qike
Income statement of parent companyFor the year ended 31 December 2020
Unit: CNY
Item | Year 2020 | Year 2019 |
1. Operating revenue | 9,815,174,332.42 | 9,617,136,329.14 |
Less:Cost of sales | 4,803,282,641.30 | 5,300,856,882.21 |
Taxes and surcharges
Taxes and surcharges | 2,935,628,072.08 | 2,584,040,346.46 |
Selling and distribution expenses | 3,062,752.15 | 6,153,145.12 |
General and administrative expenses | 886,635,671.06 | 981,489,516.86 |
Research and Development expenses | 244,483,533.34 | 157,807,557.00 |
Financial expenses | -61,151,383.38 | -56,610,787.22 |
Including: Interest expenses | 1,964.00 | 2,618.00 |
Interest income | 75,649,553.46 | 58,715,233.69 |
Plus: Other income | 16,130,425.67 | 15,964,590.12 |
Investment income ("-" for losses) | 6,468,741,332.69 | 6,858,473,174.64 |
Including: income from investment in associates and joint ventures | ||
Disposal of financial instruments at amortised cost ("-" for losses) | ||
Net exposure to hedging gains ("-"for loss) | ||
Gains from the changes in fair values (“-“ for losses) | 1,350,425,088.90 | -106,912,987.67 |
Losses from credit impairment ("-" for losses) | 1,891,472.97 | -3,495,447.82 |
Losses from asset impairment ("-" for losses) | -6,196,876.85 | -2,248,496.85 |
Gains from disposal of assets ("-" for losses) | 9,155,544.78 | |
2. Operating profits ("-" For Losses) | 8,834,224,489.25 | 7,414,336,045.91 |
Plus: non-operating income | 10,689,415.40 | 3,926,021.74 |
Less: non-operating expenses | 32,071,726.22 | 4,260,647.57 |
3. Total profits before tax ("-" For Total Losses) | 8,812,842,178.43 | 7,414,001,420.08 |
Less: income tax expenses | 587,325,094.40 | 207,035,832.38 |
4. Net profit ("-" For Net Loss) | 8,225,517,084.03 | 7,206,965,587.70 |
Net profit from continuing operation ("-" for losses) | 8,225,517,084.03 | 7,206,965,587.70 |
Net profit from discontinued operation ("-" for losses) | ||
5.Net of tax from other comprehensive income | ||
Other comprehensive income cannot reclassified into the profit and loss: | ||
Including: Changes in remeasured defined benefit obligations | ||
Other comprehensive income that cannot be transferred under the equity method | ||
Net gain on equity instrument at fair value through other comprehensive income | ||
Fair value changes in enterprise's own credit risk | ||
Others | ||
Other comprehensive income that will be reclassified into the profit and loss |
Including: Share in othercomprehensive income that will beclassified into profit and loss underequity method
Including: Share in other comprehensive income that will be classified into profit and loss under equity method | ||
Net gain on debt instruments at fair value through other comprehensive income | ||
Profit and loss of fair value changes of financial assets available for sale | ||
The amount of financial assets reclassified into other comprehensive income | ||
Hold-to-maturity investments are reclassified as gains and losses on financial assets available for sale | ||
Other debt investment credit impairment provision | ||
Cash flow hedging reserve | ||
Balance arising from the translation of foreign currency financial statements | ||
others | ||
6. Total comprehensive income | 8,225,517,084.03 | 7,206,965,587.70 |
7. Earnings per share | ||
(1)Basic earnings per share | ||
(2)Diluted earnings per share |
Consolidated Statement of Cash Flows
For the year ended 31 December 2020
Unit: CNY
Item | Year 2020 | Year 2019 |
1. Cash flows from operating activities | ||
Cash received from sale of goods and rendering of services | 21,527,429,733.96 | 28,157,803,517.41 |
Net increase in customer bank deposits and placement from banks and other financial institutions | ||
Net increase in loans from central bank | ||
Net increase in loans from other financial institutions | ||
Premiums received from original insurance contracts | ||
Net cash received from reinsurance business | ||
Net increase in deposits and investments from policyholders | ||
Cash received from interest, handling charges and commissions | ||
Net increase in placements from other financial institutions | ||
Net capital increase in repurchase business | ||
Net cash received for the sale of |
securities
securities | ||
Refunds of taxes and surcharges | 3,754,079.47 | |
Cash received from other operating activities | 369,789,635.60 | 260,350,164.67 |
Sub-total of cash inflows from operating activities | 21,900,973,449.03 | 28,418,153,682.08 |
Cash paid for goods purchased and services received | 6,286,561,510.66 | 6,764,469,880.73 |
Net increase in loans and advances to customers | ||
Net increase in deposits in central bank and other banks and financial institutions | ||
Cash paid for original insurance contract claims | ||
A net increase in divested funds | ||
Cash paid for interests, handling charges and commissions | ||
Cash paid for policy dividends | ||
Cash paid to and on behalf of employees | 2,154,721,871.26 | 2,248,376,328.48 |
Cash paid for taxes and surcharges | 7,194,164,716.07 | 9,642,918,810.91 |
Cash paid for other operating activities | 2,286,734,515.24 | 2,964,496,790.55 |
Sub-total of cash outflows from operating activities | 17,922,182,613.23 | 21,620,261,810.67 |
Net cash flows from operating activities | 3,978,790,835.80 | 6,797,891,871.41 |
2. Cash flows from investing activities | ||
Cash received from disposal of investments | 29,694,068,687.78 | 39,845,997,675.65 |
Cash received from returns on investments | 1,202,721,025.76 | 828,033,083.69 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 210,268.97 | 24,075,082.94 |
Net cash received from disposal of subsidiaries and other business units | ||
Cash received from other investing activities | ||
Sub-total of cash inflows from investing activities | 30,896,999,982.51 | 40,698,105,842.28 |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 353,104,399.72 | 317,159,366.30 |
Cash paid for investments | 26,071,060,798.23 | 41,674,161,609.88 |
Net increase in pledge loans | ||
Net cash paid to acquire subsidiaries and other business units | ||
Cash paid for other investing activities | ||
Sub-total of cash outflows from investing activities | 26,424,165,197.95 | 41,991,320,976.18 |
Net cash flows from investingactivities
Net cash flows from investing activities | 4,472,834,784.56 | -1,293,215,133.90 |
3. Cash flows from financing activities | ||
Cash received from investors | ||
Including: cash received by subsidiaries from investments by minority shareholders | ||
Cash received from borrowings | ||
Cash received from other financing activities | ||
Sub-total of cash inflows from financing activities | ||
Cash paid for debt repayments | 36,363.00 | 36,365.00 |
Cash paid for distribution of dividends and profits or payment of interest | 4,502,748,947.00 | 4,822,364,218.00 |
Including: dividends and profits paid to minority shareholders by subsidiaries | ||
Cash paid for other financing activities | 1,002,128,680.79 | 750,000.00 |
Sub-total of cash outflows from financing activities | 5,504,913,990.79 | 4,823,150,583.00 |
Net cash flows from financing activities | -5,504,913,990.79 | -4,823,150,583.00 |
4. Effect of fluctuation in exchange rate on cash and cash equivalents | -3,670,115.95 | 3,270,386.19 |
5. Net increase in cash and cash equivalents | 2,943,041,513.62 | 684,796,540.70 |
Plus: balance of cash and cash equivalents at the beginning of the period | 4,300,144,848.67 | 3,615,348,307.97 |
6. Balance of cash and cash equivalents at the end of the period | 7,243,186,362.29 | 4,300,144,848.67 |
Cash flow statements of parent company
For the year ended 31 December 2020
Unit: CNY
Item | Year 2020 | Year 2019 |
1. Cash flows from operating activities | ||
Cash received from sale of goods and rendering of services | 7,298,161,290.23 | 12,584,198,907.24 |
Refunds of taxes and surcharges | 3,748,884.67 | |
Cash received from other operating activities | 115,821,893.81 | 132,079,899.80 |
Sub-total of cash inflows from operating activities | 7,417,732,068.71 | 12,716,278,807.04 |
Cash paid for goods purchased and services received | 4,754,965,644.22 | 4,836,044,878.55 |
Cash paid to and on behalf of employees | 976,080,459.90 | 1,068,195,037.31 |
Cash paid for taxes and surcharges | 3,310,811,322.45 | 4,436,521,595.18 |
Cash paid for other operatingactivities
Cash paid for other operating activities | 658,812,311.64 | 7,532,523,407.67 |
Sub-total of cash outflows from operating activities | 9,700,669,738.21 | 17,873,284,918.71 |
Net cash flows from operating activities | -2,282,937,669.50 | -5,157,006,111.67 |
2. Cash flows from investing activities | ||
Cash received from disposal of investments | 14,332,925,799.75 | 22,661,938,083.48 |
Cash received from returns on investments | 4,692,923,129.36 | 6,816,504,503.68 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 53,146.71 | 11,230,158.55 |
Net cash received from disposal of subsidiaries and other business units | ||
Cash received from other investing activities | ||
Sub-total of cash inflows from investing activities | 19,025,902,075.82 | 29,489,672,745.71 |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 165,081,329.81 | 218,187,673.01 |
Cash paid for investments | 9,100,000,000.00 | 17,400,106,712.99 |
Net cash paid to acquire subsidiaries and other business units | ||
Cash paid for other investing activities | ||
Sub-total of cash outflows from investing activities | 9,265,081,329.81 | 17,618,294,386.00 |
Net cash flows from investing activities | 9,760,820,746.01 | 11,871,378,359.71 |
3. Cash flows from financing activities | ||
Cash received from investors | ||
Cash received from loans | ||
Cash received from other financing activities | ||
Sub-total of cash inflows from financing activities | ||
Cash paid for debt repayments | 36,363.00 | 36,365.00 |
Cash paid for distribution of dividends and profits or payment of interest | 4,502,748,947.00 | 4,822,364,218.00 |
Cash paid for other financing activities | 1,002,128,680.79 | |
Sub-total of cash outflows from financing activities | 5,504,913,990.79 | 4,822,400,583.00 |
Net cash flows from financing activities | -5,504,913,990.79 | -4,822,400,583.00 |
4. Effect of fluctuation in exchange rate on cash and cash equivalents | -1,292,596.02 | 130,761.11 |
5. Net increase in cash and cash | 1,971,676,489.70 | 1,892,102,426.15 |
equivalents
equivalents | ||
Plus: balance of cash and cash equivalents at the beginning of the period | 3,741,676,596.22 | 1,849,574,170.07 |
6. Balance of cash and cash equivalents at the end of the period | 5,713,353,085.92 | 3,741,676,596.22 |
Consolidated statement of changes in shareholders' equity
For the year ended 31 December 2020
Unit: CNY
Item
Item | Year 2020 | ||||||||||||||
Equity attributable to owners of the parent company | Non-controlling interests | Total shareholders' equity | |||||||||||||
Share capital | Other equity instruments | Capital reserve | Less:Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
Preferred stock | Perpetual bond | Others | |||||||||||||
1. Balance as at 31 December of last year | 1,506,988,000.00 | 741,532,550.13 | -3,608,771.16 | 753,494,000.00 | 33,510,429,712.50 | 36,508,835,491.47 | -17,282,921.75 | 36,491,552,569.72 | |||||||
Plus: adjustments for changes in accounting policies | |||||||||||||||
Adjustments for correction of accounting errors in prior year | |||||||||||||||
Business combinations under common control | |||||||||||||||
Others | |||||||||||||||
2. Balance as at January 1 of the current | 1,506,988,000.00 | 741,532,550.13 | -3,608,771.16 | 753,494,000.00 | 33,510,429,712.50 | 36,508,835,491.47 | -17,282,921.75 | 36,491,552,569.72 |
year
year | |||||||||||||||
3.Increases/decreases in the current year (“-” for decreases) | 1,002,128,680.79 | -1,604,477.77 | 2,979,481,650.63 | 1,975,748,492.07 | 2,352,015.20 | 1,978,100,507.27 | |||||||||
(1) Total comprehensive income | -1,604,477.77 | 7,482,228,633.63 | 7,480,624,155.86 | 2,352,015.20 | 7,482,976,171.06 | ||||||||||
(2) Capital contributed or reduced by owners | 1,002,128,680.79 | -1,002,128,680.79 | -1,002,128,680.79 | ||||||||||||
Capital contributions by owners | |||||||||||||||
Capital contributions by other equity instruments holders | |||||||||||||||
Amounts of share-based payments recognized in owners' equity | |||||||||||||||
Others | 1,002,128,680.79 | -1,002,128,680.79 | -1,002,128,680.79 | ||||||||||||
(3) Profit distribution | -4,502,746,983.00 | -4,502,746,983.00 | -4,502,746,983.00 | ||||||||||||
Withdrawal of |
surplusreserves
surplus reserves | |||||||||||||||
Withdrawal of general risk reserve | |||||||||||||||
Profit distributed to owners (or shareholders) | -4,502,746,983.00 | -4,502,746,983.00 | -4,502,746,983.00 | ||||||||||||
Others | |||||||||||||||
(4) Internal carry-forward of owners' equity | |||||||||||||||
Conversion of capital reserves into paid-in capital | |||||||||||||||
Conversion of surplus reserves into paid-in capital | |||||||||||||||
Surplus reserves offsetting losses | |||||||||||||||
Amount of Changes in setting benefit plan transfer to retained earnings | |||||||||||||||
Other |
comprehensive incometransferred toretainedearnings
comprehensive income transferred to retained earnings | |||||||||||||||
Others | |||||||||||||||
(5) Special reserves | |||||||||||||||
Withdrawal for the period | |||||||||||||||
Use for the period | |||||||||||||||
Others | |||||||||||||||
4. Balance as at 31 December of the current year | 1,506,988,000.00 | 741,532,550.13 | 1,002,128,680.79 | -5,213,248.93 | 753,494,000.00 | 36,489,911,363.13 | 38,484,583,983.54 | -14,930,906.55 | 38,469,653,076.99 |
Item | Year 2019 | ||||||||||||||
Equity attributable to owners of the parent company | Non-controlling interests | Total shareholders' equity | |||||||||||||
Share capital | Other equity instruments | Capital reserve | Less:Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
Preferred stock | Perpetual bond | Others | |||||||||||||
1. Balance as at 31 December of last year | 1,506,988,000.00 | 741,704,076.44 | -141,964,710.15 | 753,494,000.00 | 30,784,308,899.94 | 33,644,530,266.23 | -20,011,735.87 | 33,624,518,530.36 | |||||||
Plus: adjustments for changes in | 140,593,969.30 | 165,659,685.69 | 306,253,654.99 | 29,817.62 | 306,283,472.61 |
accountingpolicies
accounting policies | |||||||||||||||
Adjustments for correction of accounting errors in prior year | |||||||||||||||
Business combinations under common control | |||||||||||||||
Others | |||||||||||||||
2. Balance as at January 1 of the current year | 1,506,988,000.00 | 741,704,076.44 | -1,370,740.85 | 753,494,000.00 | 30,949,968,585.63 | 33,950,783,921.22 | -19,981,918.25 | 33,930,802,002.97 | |||||||
3.Increases/decreases in the current year (“-” for decreases) | -171,526.31 | -2,238,030.31 | 2,560,461,126.87 | 2,558,051,570.25 | 2,698,996.50 | 2,560,750,566.75 | |||||||||
(1) Total comprehensive income | -2,238,030.31 | 7,382,822,726.87 | 7,380,584,696.56 | 3,277,470.20 | 7,383,862,166.76 | ||||||||||
(2) Capital contributed or reduced by owners | -171,526.31 | -171,526.31 | -578,473.70 | -750,000.01 | |||||||||||
Capital contributions by owners | |||||||||||||||
Capital contributions |
by otherequityinstrumentsholders
by other equity instruments holders | |||||||||||||||
Amounts of share-based payments recognized in owners' equity | |||||||||||||||
Others | -171,526.31 | -171,526.31 | -578,473.70 | -750,000.01 | |||||||||||
(3) Profit distribution | -4,822,361,600.00 | -4,822,361,600.00 | -4,822,361,600.00 | ||||||||||||
Withdrawal of surplus reserves | |||||||||||||||
Withdrawal of general risk reserve | |||||||||||||||
Profit distributed to owners (or shareholders) | -4,822,361,600.00 | -4,822,361,600.00 | -4,822,361,600.00 | ||||||||||||
Others | |||||||||||||||
(4) Internal carry-forward of owners' equity | |||||||||||||||
Conversion of capital reserves into paid-in capital |
Conversion ofsurplusreserves intopaid-in capital
Conversion of surplus reserves into paid-in capital | |||||||||||||||
Surplus reserves offsetting losses | |||||||||||||||
Carry-forward of retained earnings from changes in defined benefit plans | |||||||||||||||
Other comprehensive income transferred to retained earnings | |||||||||||||||
Others | |||||||||||||||
(5) Special reserves | |||||||||||||||
Withdrawal for the period | |||||||||||||||
Use for the period | |||||||||||||||
(6) Others | |||||||||||||||
4. Balance as at 31 December of the current year | 1,506,988,000.00 | 741,532,550.13 | -3,608,771.16 | 753,494,000.00 | 33,510,429,712.50 | 36,508,835,491.47 | -17,282,921.75 | 36,491,552,569.72 |
Statement of changes in shareholders' equity of parent company
For the year ended 31 December 2020
Unit: CNY
Item
Item | Year 2020 | |||||||||||
Share capital | Other equity instruments | Capital reserve | Less:Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | Undistributed profit | Others | Total shareholders' equity | |||
Preferred stock | Perpetual bond | Others | ||||||||||
1. Balance as at 31 December of last year | 1,506,988,000.00 | 1,341,628,480.93 | 753,494,000.00 | 24,556,878,616.62 | 28,158,989,097.55 | |||||||
Plus: adjustments for changes in accounting policies | ||||||||||||
adjustments for correction of accounting errors in prior year | ||||||||||||
Others | ||||||||||||
2. Balance as at January 1 of the current year | 1,506,988,000.00 | 1,341,628,480.93 | 753,494,000.00 | 24,556,878,616.62 | 28,158,989,097.55 | |||||||
3.Increases/decreases in the current year (“-” for decreases) | 1,002,128,680.79 | 3,722,770,101.03 | 2,720,641,420.24 | |||||||||
(1) Total comprehensive income | 8,225,517,084.03 | 8,225,517,084.03 | ||||||||||
(2) Capital contributed or reduced by owners | 1,002,128,680.79 | -1,002,128,680.79 | ||||||||||
Capital contributions by owners (common stock) | ||||||||||||
Capital contributions by other equity instruments |
holders
holders | ||||||||||||
Amounts of share-based payments recognized in owners' equity | ||||||||||||
Others | 1,002,128,680.79 | -1,002,128,680.79 | ||||||||||
(3)Profit distribution | -4,502,746,983.00 | -4,502,746,983.00 | ||||||||||
Withdrawal of surplus reserves | ||||||||||||
Profit distributed to owners (or shareholders) | -4,502,746,983.00 | -4,502,746,983.00 | ||||||||||
Others | ||||||||||||
(4) Internal carry-forward of owners' equity | ||||||||||||
Conversion of capital reserves into paid-in capital | ||||||||||||
Conversion of surplus reserves into paid-in capital | ||||||||||||
Surplus reserves offsetting losses | ||||||||||||
Amount of Changes in setting benefit plan transfer to retained earnings | ||||||||||||
Other comprehensive income transferred to retained earnings |
Others
Others | ||||||||||||
(5) Special reserves | ||||||||||||
Withdrawal for the period | ||||||||||||
Use for the period | ||||||||||||
(6) Others | ||||||||||||
4. Balance as at 31 December of the current year | 1,506,988,000.00 | 1,341,628,480.93 | 1,002,128,680.79 | 753,494,000.00 | 28,279,648,717.65 | 30,879,630,517.79 |
Statement of Changes in Shareholders' Equity
For the year ended 31 December 2020
Unit: CNY
Item | Year 2019 | |||||||||||
Share capital | Other equity instruments | Capital reserve | Less:Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | Undistributed profit | Others | Total shareholders' equity | |||
Preferred stock | Perpetual bond | Others | ||||||||||
1. Balance as at 31 December of last year | 1,506,988,000.00 | 1,341,628,480.93 | 753,494,000.00 | 21,942,516,695.42 | 25,544,627,176.35 | |||||||
Plus: adjustments for changes in accounting policies | 229,757,933.50 | 229,757,933.50 | ||||||||||
adjustments for correction of accounting errors in prior year | ||||||||||||
Others | ||||||||||||
2. Balance as at January 1 of the current year | 1,506,988,000.00 | 1,341,628,480.93 | 753,494,000.00 | 22,172,274,628.92 | 25,774,385,109.85 | |||||||
3.Increases/decreases in the current year (“-” for decreases) | 2,384,603,987.70 | 2,384,603,987.70 |
(1) Total comprehensive
income
(1) Total comprehensive income | 7,206,965,587.70 | 7,206,965,587.70 | ||||||||||
(2) Capital contributed or reduced by owners | ||||||||||||
Capital contributions by owners (common stock) | ||||||||||||
Capital contributions by other equity instruments holders | ||||||||||||
Amounts of share-based payments recognized in owners' equity | ||||||||||||
Others | ||||||||||||
(3)Profit distribution | -4,822,361,600.00 | -4,822,361,600.00 | ||||||||||
Withdrawal of surplus reserves | ||||||||||||
Profit distributed to owners (or shareholders) | -4,822,361,600.00 | -4,822,361,600.00 | ||||||||||
Others | ||||||||||||
(4) Internal carry-forward of owners' equity | ||||||||||||
Conversion of capital reserves into paid-in capital | ||||||||||||
Conversion of surplus reserves into paid-in capital | ||||||||||||
Surplus reserves offsetting losses | ||||||||||||
Amount of Changes in |
setting benefit plantransfer to retainedearnings
setting benefit plan transfer to retained earnings | ||||||||||||
Other comprehensive income transferred to retained earnings | ||||||||||||
Others | ||||||||||||
(5) Special reserves | ||||||||||||
Withdrawal for the period | ||||||||||||
Use for the period | ||||||||||||
(6) Others | ||||||||||||
4. Balance as at 31 December of the current year | 1,506,988,000.00 | 1,341,628,480.93 | 753,494,000.00 | 24,556,878,616.62 | 28,158,989,097.55 |
III. Company profileJiangsu Yanghe Distillery Co., Ltd.(hereinafter referred to as “the Company”)wasestablished on 26 December 2002, verified by the Government of Jiangsu Province,details referred to Reply on The approval of Establishment of Jiangsu Yanghe DistilleryCo., Ltd. by the provincial government (SuZhengFu [2002]No.155), and it was a companyfounded by Jiangsu Yanghe Group Co.,Ltd., Shanghai Haiyan Logistics DevelopmentCo.,Ltd., Nantong Zongyi Investment Co.,Ltd.,Shanghai Jieqiang Tobacco Sugar & Wine(Group) Co.,Ltd., Jiangsu Venture Capital Co.,Ltd., China National Research Institute ofFood and Fermentation Industries Co. Ltd., Nantong Shengfu Industrial Trade Co., Ltd.and Yang Yandong and other totally 14 nature persons. On 27 December, the Compamyobtained the unified social credit code (91460000201357188U) issued by JiangsuProvincial Administration for Industry and Commerce. The registered capital was CNY 68million and the share capital was 68,000,000 (CNY 1 per share). According to thedocuments verified by Jiangsu Provincial Department of Finance (Su Cai Guo Zi [2002]No.178), all the fund capital converts into share capital according to the ratio1:0.65561,among which, Jiangsu Yanghe Group Co.,Ltd contributed CNY 52,264,100 ofevaluated physical assets and CNY 735,900 of currency, covered into 34,747,330 shares,accounting for 51.099% of the total share capital; Shanghai Haiyan LogisticsDevelopment Co.,Ltd contributed CNY 15,000,000 of currency, convered into 9,834,150shares, accounting for the 14.462% of the total share capital; Nantong Zongyi InvestmentCo.,Ltd. contributed CNY 15,000,000 of currency, converted into 9,834,150 shares,accounting for 14.462% of the total share capital; ShangHai Jieqiang Tobacco Sugar &Wine (Group) Co.,Ltd. contributed CNY 7,000,000 of currency converted into 4,589,270shares, accounting for 6.749% of the total share capital; Jiangsu Venture Capital Co.,Ltd.contributed CNY 3,000,000 of currency concerted into 1,966,830 shares, accounting for
2.892% of the total share capital; China National Research Institute of Food andFermentation Industries Co. Ltd. contributed CNY 1,000,000 of currency, converted into655,611 shares, accounting for 0.964% of the total share capital; Nantong ShengfuIndustrial Trade Co., Ltd. contributed CNY 1,000,000 of currency, converted into 655,611shares, accounting for 0.964% of the total share capital; Yang Yandong and other totally14 nature persons contributed CNY 8,720,200 of currency, converted into 5,717,050shares, accounting for 8.408% of the total share capital.On 13 September 2009, the Company was verified by China Securities RegulatoryCommission, according to the document Reply on Approving Initial Public Offering ofJiangsu Yanghe Distillery Co., Ltd. (Zheng Jian Approval [2009] No.1077).TheCompany announced the initial public offering of 45,000,000 common shares on 27February 2009 and was listed for transactions in SZSE since 6 November 2009.According to the decisions of 2010 Shareholders’ General Meeting on 23 April 2011,based on the total capital of 450,000,000 shares on 31 December 2010, the capitalreserves per 10 shares were converted into 10 shares. After the conversion, the totalshare capital of the Company was 900,000,000 as well as registered capital of CNY900,000,000.
According to the decision of 2011 Shareholders’ General Meeting on 17 May 2012,based on the total capital of 900,000,000 shares on 31 December 2011, the capitalreserves per 10 shares were converted into 2 shares. After the conversion, the totalshare capital of the Company was 1,080,000,000 as well as registered capital of CNY108,000,000.According to the Proposal of Initial Share Repurchase of Public Shares approved by2012 Shareholders’ General Meeting on 17 May 2013, the Company used owned fundsto repurchase public shares and the price of public shares was no more than CNY 70.00per share, as well as the total amount of repurchase shares was no more than CNY 10billion. The form of repurchase was centralized competitive bidding approved by SZSE.Until May 2014, the amount of repurchase shares was 3,580,000 and the total amount ofpayment CNY 157,793,218.58. The shares repurchased had been canceled according tothe law with the procedure of capital reduction. After the repurchase, the registeredcapital became CNY 1,076,420,000 and the total share capital of the Company became1,076,420,000.According to the decision of 2014 Shareholders’ General Meeting on 26 May 2015,based on the total capital of 1,076,420,000 shares on 31 December 2014, the capitalreserves per 10 shares were converted into 4 shares. After the conversion, the totalshare capital of the company was 1,506,988,000 as well as the registered capital of CNY1,506,988,000.Registered address of the Company: 118 Middle Avenue,Yanghe Town, Suqian City,Jiangsu ProvinceCompany type: Incorporated company (Listed)Industry of the Company: Brewing food industryBusiness scope of the Company:production and sale of liquor, wholesaling and retailingof prepackaged food,grain purchase, self-operating and agency of import and export ofvarious types of merchandise and technology excluding merchandise and technologylimited or prohibited by the state for import and export, domestic trade, construction of e-commerce platform and online sales.( Business activities of projects needed to beapproved by law must be approved according to related departments)Parent company of the Company:Jiangsu Yanghe Group Co.,Ltd.The scope of the Company's consolidated financial statements is based on control, andall subsidiaries are included in the consolidation scope of the consolidated financialstatements.Changes of the scope of consolidation are as follows:
Subsidiaries that are newly incorporated into the scope of consolidation areshown in the following table:
Name
Name | Measure of acquisition |
Jiangsu Yanghe Painting and Calligraphy | Newly establishment |
Academy
Subsidiaries that are no longer incorporated into the scope of consolidation areshown in the following table:
AcademyName
Name | Reason |
Huaian Huaqu Wine Development Co.,Ltd. | Liquidation and cancellation |
Jiangsu Huaqu Wine Group Nanjing Co.,Ltd. | Liquidation and cancellation |
Jiangsu Huaqu Wine Group Nantong Co., Ltd. | Liquidation and cancellation |
Jiangsu Huaqu Wine Group Suzhou Co., Ltd. | Liquidation and cancellation |
Taizhou Huaqu Wine Development Co.,Ltd. | Liquidation and cancellation |
Jiangsu Huaqu Wine Group Wuxi Co., Ltd. | Liquidation and cancellation |
Jiangsu Huaqu Wine Group Yancheng Co., Ltd. | Liquidation and cancellation |
Guizhou Guijiu Package Co.,Ltd. | Liquidation and cancellation |
Details of the subsidiaries incorporated into the consolidated financial statements showon “Note 9. 1.Interests in subsidiaries”, Changes in the scope of consolidation show on“Note 8. Change in consolidated scope”.
IV.Basis of preparation of financial statements
1. Basis of preparation
The Company has prepared its financial statements on a going concern basis, andrecognized and measured its accounting items in compliance with the AccountingStandards for Business Enterprises—Basic Standards and various concrete accountingstandards, and other relevant provisions on the basis of actual transactions and events.
2. Going concern
The Company has sustainable operation ability for at least 12 months from the end of thereporting period. In addition, there is no significant event affecting going concern.
V. Significant accounting policies and accounting estimates
(1) Sales contract
The Company's sales products, promotional products and other goods belong to theperformance obligations performed at a certain point.The Company recognizes the sales revenue when the goods are delivered to thecustomer and the control of the goods is transferred. For export sales business, theCompany recognizes the revenue after the goods are delivered and the customsclearance procedures are completed.According to the marketing policy, and the dealer sales of final product, the Companygives the dealer a percentage discount, and regularly or irregularly settles with dealers.At the time of settlement, the discounts are recorded in a sales invoice issued. The net
amount of invoice value after the deduction of the discount sales income is recognized asrevenue according to the accrual principle. The discounts that have occurred and havenot yet been settled at the end of the current period shall be taken provision from thesales revenue and recorded into the contract liabilities.
(2) Service Contract
The service contract provided by the Company contains the performance obligation ofthe lease service provided. Since the customer obtains and consumes the economicbenefits brought by the performance of the contract at the same time, it is regarded asthe performance obligation performed within a certain period of time and is equallyapportioned and confirmed during the service provision.
1. Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with ASBE,and present truly and completely, the group’s financial position, the Company’s andresults of operations, and changes in shareholders' equity, cash flows and other relatedinformation for the reporting period.
2. Accounting period
The Company’s accounting period is calendar year as its accounting year, i.e. from 1January to 31 December.
3. Operating cycle
The Company’s accounting period is 12 months.
4. Functional currency
The Company has adopted China Yuan (CNY) as functional currency.
5. The accounting treatment of business combinations involvingenterprises under common control and not under common control
(1) Accounting treatment method for business combination under common control
Business combination under common control is accounted for under pooling ofinterest method.Assets and liabilities obtained by the Company through business combination undercommon control shall be measured at the book value as stated in the combine’saccounting record on the combination date. The share of the book value of themerged party’s owner’s equity in the consolidated financial statements is taken asthe initial investment cost of long-term equity investments in individual financial
statements. The capital reserve (stock premium or capital premium) is adjustedaccording to the difference between the book value of net asset acquired throughcombination and the book value of consideration paid for the combination (or totalpar value of shares issued). If the capital reserve (stock premium or capital premium)is insufficient to offset, the retained earnings shall be adjusted.
(2) Accounting treatment method of business combination not under common control
The Company accounts for business combination not under common control underpurchase method.a) All the net identifiable assets, liabilities or contingent liabilities obtained by theCompany through business combination not under common control shall bemeasured at fair value. Assets paid, liabilities incurred or assumed and the equitysecurities issued as consideration for combination are generally measured at fairvalue on the acquisition date, and differences between their fair values and bookvalues shall be included in the current profit and loss.b) The cost of acquisition shall be respectively determined for the followingconditions;i.Business combination of a transaction implementation, the combination costshall be the sum of the fair value of the assets given, the liabilities incurred orassumed and the equity securities issued by the Company in exchange for thecontrol on the acquisition date, and contingent considerations meeting therecognition conditions. The combination cost is the initial investment costs oflong-term equity investments in individual financial statements.ii.Business combination through multiple transactions step by step to realized,the combination cost shall be the sum of the fair value measurement on theacquisition of the equity investment that holding before the acquisition date andcost of all the new investment on the acquisition date. Long-term equityinvestment cost in individual financial statements shall be the sum of the bookvalue of the equity investment that holding before the acquisition date and costof all the new investment on the acquisition date. A package deal is excluded.The Company, on the acquisition date, allocates the combination costs between theidentifiable assets and liabilities acquiredi.All assets of the acquiree obtained by the Company through businesscombination(not limited to those that have been recognized by the acquiree),other than intangible assets, shall be separately recognized and measured atfair value when the future economic benefits arising thereafter are expected toflow into the Company and the fair value can be reliably measured.
ii.Intangible assets of the acquiree obtained by the Company through businesscombination shall be separately recognized and measured at fair value whentheir fair values can be reliably measured.iii. All liabilities of the acquiree obtained by the Company through businesscombination, other than contingent liabilities, shall be separately recognizedand measured at fair value when fulfillment of relevant obligations are expectedto bring future economic benefits to the Company and the fair value can bereliably measured.iv.Contingent liabilities of the acquiree obtained by the Company throughbusiness combination shall be separately recognized as liabilities andmeasured at fair value when their fair values can be reliably measured.v.When the Company allocates the cost of business combination andrecognizes the identifiable assets and liabilities acquired through combination, itshall not include any goodwill and deferred income taxes that have beenrecognized by the acquiree before the business combination.c) Treatment of the difference between the business combination costs and the fairvalue of net identifiable asset acquired from the acquiree through combinationi.The Company shall recognize the difference of the combination costs inexcess of the fair value of the net identifiable asset acquired from the acquireethrough combination as goodwill.ii.The Company shall recognize the difference of the combination costs in shortof the fair value of the net identifiable asset acquired from the acquiree throughcombination according to the following provisions:
Review the measurement of fair values of all the identifiable assets, liabilitiesand contingent liabilities acquired from the acquiree and the combination costs;After the review, if the combination costs are still in short of the fair value of thenet identifiable asset acquired from the acquiree through combination, includethe difference in the current profit and loss.
(3)Treatment of relevant expenses arising from the Company’s business combination
a) Relevant expenses directly arising from the business combination of theCompany (including the expenses for audit, legal services, evaluation andconsultation or other intermediary costs for business combination) shall be includedin the current profit and loss when they are incurred.b) Commissions, fees and other expenses paid on issuance of bonds andundertaking of other debts for the business combination shall be included in theinitial measurement amount of debt securities.i.Where the bonds are issued at discount or par value, that part of expenses willincrease the amount of the discount;
ii.Where the bonds are issued at premium, that part of expenses will decreasethe amount of the premium.c) Fees, commissions, and other transaction expenses paid on issuance of equitysecurities as combination consideration in the business combination shall beincluded in the initial measurement amount of equity securities.i.Where the equity securities are issued at premium, that part of expenses shallbe deducted from capital reserves (stock premium);ii.Where the equity securities are issued at par value or discount, that part ofexpenses shall be deducted from the retained earnings.
6. Preparation of consolidated financial statements
(1) Consistency of accounting policies and accounting period
All the subsidiaries within the consolidation scope of consolidated financial statementsshall adopt the same accounting policies and accounting periods as those of theCompany. If the accounting policies or accounting periods of a subsidiary are differentfrom those of the Company, the financial statements of the subsidiary, upon preparationof consolidated financial statements, shall be adjusted according to the accountingpolicies and accounting periods of the Company.
(2) Preparation method of consolidated financial statements
The consolidated financial statements are based on the financial statements of theCompany and its subsidiaries, and are prepared by the parent company according toother relevant information after the adjustment to long-term equity investments insubsidiaries under the equity method and the elimination of effects of the internaltransactions between the Company and its subsidiaries and between the subsidiaries onthe consolidated financial statement.
(3) Reflection of excess losses incurred to a subsidiary in the consolidated financialstatementsIn the consolidated financial statements, where the current losses undertaken by theparent company are in excess of its share of owners’ equity in the subsidiary at thebeginning of the period, the balance shall reduce the owners’ equity (retained earnings)of the parent company; where the current losses undertaken by a subsidiary’s non-controlling shareholders excess those non-controlling shareholders’ share of owners’equity in the subsidiary at the beginning of the period, the balance shall reduce the non-controlling interests.
(4) Changes in number of subsidiaries during the reporting period
a) Acquisition of subsidiaries during the reporting period
i. Treatment of acquiring subsidiaries from business combination undercommon control during the reporting periodDuring the reporting period, if the Company acquires subsidiaries from thebusiness combination under common control, the opening balance in theconsolidated balance sheet shall be adjusted. The income, expenses andprofits of the newly acquired subsidiaries from the beginning to the end of thereporting period shall be included in the consolidated income statement. Thecash flows of the newly acquired subsidiaries from the beginning to the end ofthe reporting period shall be included in the consolidated statement of cashflows.ii. Treatment of acquiring subsidiaries from business combination not undercommon control during the reporting periodDuring the reporting period, if the Company acquires subsidiaries from thebusiness combination not under common control, the opening balance in theconsolidated balance sheet shall not be adjusted. The income, expenses andprofits of the newly acquired subsidiaries from the acquisition date to the end ofthe reporting period shall be included in the consolidated income statement.The cash flows of the newly acquired subsidiaries from the acquisition date tothe end of the reporting period shall be included in the consolidated statementof cash flows.b) Treatment of disposing subsidiaries during the reporting periodDuring the reporting period, if the Company disposes subsidiaries, the openingbalance in the consolidated balance sheet shall not be adjusted. The income,expenses and profits of the newly disposed sub diaries from the beginning to thedisposal date shall be included in the consolidated income statement. The cashflows from the beginning to the disposal date shall be included in the consolidatedstatement of cash flows.
7. Classification of joint venture arrangements and the accountingtreatment method of common operation
(1) Classification of joint venture arrangements
A joint arrangement is classified as either a joint operation or a joint venture. A jointoperation is a joint arrangement whereby the joint operators have rights to the assets,and obligations for the liabilities, relating to the arrangement. A joint venture is a jointarrangement whereby the joint ventures only have the rights to the net assets under thisarrangement.A joint arrangement that is not structured through a separate vehicle shall be classified
as a joint operation. A separate vehicle refers to a separately identifiable financialstructure, including separate legal entities or entities without a legal personality butrecognized by statute.A joint arrangement that is structured through a separate vehicle is usually classified as ajoint venture. However, when a joint arrangement provides clear evidence that it meetsany of the following requirements and complies with applicable laws and regulations as ajoint operation:
a) The legal form of the joint arrangement indicates that the parties that have jointcontrol have rights to the assets, and obligations for the liabilities, relating to thearrangement.b) The terms of the joint arrangement specify that the parties that have joint controlhave the rights to the assets, and the obligations for the liabilities, relating to thearrangement.c) Other facts and circumstances indicate that the parties that have joint controlhave rights to the assets, and the obligations for the liabilities, relating to thearrangement---for example, the parties that have joint control have rights tosubstantially all of the output of the arrangement, and the arrangement depends onthe parties that have joint control on a continuous basis for settling the liabilities ofthe arrangement.
(2) Accounting treatment of a joint operation
A joint operator shall recognize the following items in relation to its interest in a jointoperation, and account for them in accordance with relevant accounting standards:
a) Its solely-held assets, and its share of any assets held jointly;b) Its solely-assumed liabilities, and its share of any liabilities incurred jointly;c) Its revenue from the sale of its share of the output arising from the joint operation;d) Its share of the revenue from sale of the output by the joint operation; ande) Its solely-incurred expenses and its share of any expenses incurred jointly.
8. Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand.Cash equivalents are the company’s short-term (due within 3 months from purchasedate), highly liquid investments that are readily convertible to known amounts of cash andwhich are subject to an insignificant risk of changes in value.
9. Foreign currency transactions and translation of foreign currencystatements
(1) Accounting method of foreign currency transactions
a) Initial recognition of foreign currency transactionsFor foreign currency transactions incurred, the Company converts the amount inforeign currency into the amount in functional currency at the spot exchange rate(middle rate) announced by the People’s Bank of China on the transaction date.Among them, for foreign currency exchange occurred or transaction involvingforeign currency exchange, the Company converts at the exchange rate actuallyadopted on the transaction date.b) Adjustment or settlement on the balance sheet date or settlement dateOn the balance sheet date or the settlement date, the Company handles foreigncurrency monetary items and foreign currency non-monetary items separately inaccordance with the following methods:
i. Accounting principles for handling foreign currency monetary itemsFor foreign currency monetary items, on the balance sheet date or thesettlement date, the Company converts them by using the spot exchange rate(middle rate) prevailing on the balance sheet date or settlement date, andadjusts the amount in functional currency of foreign currency monetary items inrespect of the difference arising from exchange rate fluctuations, which shall betreated as exchange difference at the same time. Among them, the exchangedifferences arising from foreign currency loans relating to the acquisition,construction or production of assets eligible for capitalization shall be includedin the costs of assets eligible for capitalization; other exchange differences shallbe included in the current financial expenses.
ii. Accounting principles for handling foreign currency non-monetary itemsFor foreign currency non-monetary items measured at historical cost, theCompany shall convert them at the spot exchange rate (middle rate) prevailingon the transaction date, with their amounts in functional currency remainingunchanged and no exchange differences incurred.
For an inventory that is measured at the lower of its costs or its net realizablevalues, if the net realizable value is determined in foreign currency, theCompany, when determining the value of the inventory at the end of the period,shall firstly convert the net realizable value into functional currency and thencompare it with the inventory cost reflected in functional currency.
Non-monetary items measured at fair value that is reflected in foreign currencyat the end of the period, the Company shall firstly translate the foreign currencyinto the amount in functional currency at the spot exchange rate on the datewhen the fair value is determined, and then compare it with the originalfunctional currency amount. Difference between the translated functionalcurrency amount and the original functional currency amount is treated as profitor loss from changes in fair value (including changes in exchange rate) and isrecognized in current profit and loss.
(2) Accounting treatment method for translation of foreign currency statementsa) The Company shall translate the financial statements of foreign operations inaccordance with the following methods:
i. Assets and liabilities in the balance sheets shall be translated at the spotexchange rates on balance sheet date. Shareholders’ equity items, except forthe item of "undistributed profits", are translated at the spot exchange rates onthe dates when the transactions occur.ii. Revenue and expense items in the income statement are translated at thespot exchange rates on the dates when the transactions occur or at theexchange rate determined in a systematical and reasonable method and similarto the spot exchange rate on the day when the transactions occur.Differences arising from the above translations of foreign currency financialstatements are separately listed under ‘other comprehensive income’ in theconsolidated balance sheet.The translation of comparative financial statements is handled by reference tothe above approach.b) The Company shall translate the financial statements of foreign operations thatare in virulent inflation economy in accordance with the following methods:
i. The Company restates the items in the balance sheet by using the generalprice index, and restates the items in the income statement by using thechanges in general price index, and then converts those items at the spotexchange rate on the latest balance sheet date.ii. Where the foreign operations are no longer in virulent inflation economy, theCompany ceases to restate the financial statements and converts the financialstatements restated according to the price level on such cease.
c) Where the Company disposes of an overseas business, it shall transfer theforeign currency financial statements exchange difference, which relates to thebusiness disposed of and is presented under the items of the other comprehensiveincome in the balance sheet, from the other comprehensive income item to the gain
or loss on disposal for the current period. If the overseas business is partly disposedof, the foreign currency financial statements exchange difference shall be calculatedin proportion to the percentage of disposal and transferred to gain or loss ondisposal for the current period.
10. Financial Instruments
Financial instruments are the financial asset, financial liability or (equity) instrumentwill be recognised when the Company became one of the parties under a contract.
(1) Classification of financial instruments
(a) Classification of financial assetsAccording to the company's business model of managing financialassets and the characteristics of contract cash flow of financial assets,financial assets are classified into the following three categories:
financial assets measured at amortised cost; financial assets measuredat fair value through other comprehensive income (including financialassets directly designated to be measured at fair value through othercomprehensive income); and financial assets measured at fair valuethrough the current profit or loss.(b) Classification of financial liabilitiesThe Company classifies the financial liabilities into the following twocategories: financial liabilities measured at fair value through currentprofit and loss (including financial liabilities held for trading and financialliabilities directly designated to be at fair value through current profit andloss); and financial liabilities measured at amortized cost.
(2) Recognition basis and measurement method of financial instruments
(a) Recognition basis of financial instrumentsWhen the Company becomes a party to a financial instrument, it shallrecognize a financial asset or financial liability.(b) Measurement method of financial instrumentsi.Financial assetsFinancial assets are measured at fair value upon initial recognition. Forfinancial assets at fair value through profit or loss, relevant transactioncosts are directly recognised in profit or loss for the period. For othercategories of financial assets, relevant transaction costs are included inthe amount initially recognised. Accounts receivable or notes receivablearising from sales of goods or rendering services and without significantfinancing component or the company decided not to consider financingelements for less than one year are initially recognised based on theamount of consideration expected to be entitled to receive according toAccounting Standard for Business Enterprises No. 14 - Revenue.①Financial assets measured at amortised cost
These assets are subsequently measured at amortised cost using theeffective interest method after initial recognition. Gains/losses onfinancial assets that are measured at amortised cost and are not a part ofany hedging relationship shall be recognised in profit or loss when thefinancial asset is derecognised or reclassification or amortised using theeffective interest method or recognized the impairment allowance.
②Financial assets measured at fair value through othercomprehensive incomeThese assets are subsequently measured at fair value after initialrecognition. Except impairment, foreign exchange gains and losses,interest income calculated using the effective interest method arerecognised in profit or loss; other gains and losses are recognised inother comprehensive income. On derecognition, gains and lossesaccumulated in other comprehensive income are transferred to profit orloss.In addition, the company designated some non-tradable equityinstruments as financial assets measured at fair value through othercomprehensive income; the company shall recognise the relevantdividend income of such financial assets into the current profit and loss,and recognise the change of fair value in other comprehensive income.On derecognition, the accumulated gains/losses previously recognized inother comprehensive income shall be transferred to retained earningsand not be recognised in current profit and loss.③Financial assets measured at fair value through profit or lossThe Company classifies the financial assets, except for financial assetsmeasured at amortized cost or at fair value through other comprehensiveincome as mentioned above, into the financial assets measured at fairvalue through profit or loss for the current period. In addition, thecompany may designate some financial assets as financial assetsmeasured at fair value through profit or loss for the current period uponthe initial recognition to eliminate or significantly reduce accountingmismatch. For such financial assets, the company adopts the fair valuefor subsequent measurement, and changes in fair value are recognizedin the profit or loss for the current period.ii.Financial liabilitiesFinancial liabilities shall be classified into financial liabilities measured atfair value through profit or loss for the current period upon initialrecognition and other financial liabilities. For financial liabilities measuredat fair value through profit or loss, relevant transaction costs are directlyrecognized in the current profit and loss, and the relevant transactioncosts of other financial liabilities are recognized in the initial recognitionamount.①Financial liabilities measured at fair value through profit or loss
Financial liabilities held for trading (including derivatives of financialliabilities) shall be subsequently measured at the fair value. Except forthose related to hedge accounting, changes in the fair value shall berecognized in the profit or loss of the current period. For financialliabilities designated to be at fair value through profit or loss, fair valuechanges caused by the Company's own credit risk changes which isrecognised in other comprehensive income, when the liability isderecognition, the accumulated change in its fair value caused by thechange in its own credit risk recognized in other comprehensive incomeis transferred to retained earnings, the remaining changes of fair value isrecord in profit of loss. If the above treatment of the impact of the changein the credit risk of such financial liabilities will cause or expand theaccounting mismatch in the profit and loss, the company will record allthe gains/losses of such financial liabilities (including the amount affectedby fair value changes in enterprise's own credit risk) into the current profitand loss.
② Financial liabilities measured at amortized cost
Except financial liabilities that arise when a transfer of a financial assetsdoes not qualify for derecognition or when the continuing involvementapproach applies security contract are classified as financial liabilitiesmeasured by amortized cost, or financial subsequently measurement atamortized cost, and record the profits or losses guarantee contractsrecognition or amortization into the current profit and loss.
(3) Financial assets transfer
If the Company transfers substantially all the risks and rewards ofownership of the financial asset to the transferee, the Companyderecognises the financial asset, the rights and obligations arising orretained in the transfer shall be separately recognized as its assets orliabilities; if the Company retains substantially all the risks and rewards ofownership of the financial asset, it continues to recognise the transferredfinancial assets. If the Company neither transfers nor retains substantiallyall the risks and rewards of ownership of the financial asset, it isaccounted for as follows: if the Company has not retained control, itderecognises the financial asset, the rights and obligations arising orretained in the transfer shall be separately recognized as its assets orliabilities; and if the Company has retained control, it continues torecognize the financial asset to the extent of its continuing involvement inthe transferred financial asset and recognizes the relevant liability.Where transfer of financial assets qualify for derecognition entirety, thedifference between the following two amounts will be included intocurrent profit or loss: The book value measured at the date ofderecognition; and The sum of the consideration for the derecognitionpart and the portion of derecognition corresponding to the accumulatedamount of the changes in fair value originally and directly included in OCI(involving the situation where the financial asset transferred is a debtinstrument investment measured at fair value and recognized in othercomprehensive income). The Company transferred the partial transfer of
financial assets which qualify for derecognition, the overall carryingamount of the transferred financial asset shall be apportioned accordingto their respective relative fair value between the portion of derecognitionand the remaining.
(4) Derecognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has beendischarged, the company shall remove financial liability (or part thereof),and the company shall recognize the difference between its book valueand the consideration paid (including any non-cash assets transferred orliabilities assumed) in the current profit and loss.
(5) Offsetting of financial assets and liabilities
Financial assets and financial liabilities shall be shown separately in thebalance sheet and shall not be offset against each other. If the followingconditions are met at the same time, the net value offset each other afteramount listed in the balance sheet:
The company has offset the confirmed amount of legal rights of financialassets and financial liabilities, and this kind of legal rights is theexecutable; andThe company plans to net or cash at the same time when the financialassets and liquidation of the financial liability.If the transfer of financial assets does not meet the conditions forderecognition, the transferor shall not offset the transferred financialassets and related liabilities.
(6) Equity instruments
Equity instruments are contracts that prove ownership of the residualinterest in the company’s assets after deducting all liabilities. Theissuance (including refinancing), repurchase, sale or cancellation of theequity instruments of the company shall be treated as changes in theequity. The company does not recognize changes in the fair value ofequity instruments, and the transaction fees related to the equitytransactions shall be deducted from the equity. Where the equityinstrument of the company distributes dividends during the term of itsexistence, it shall be treated as profit distribution, and the total amount ofshareholders' equity will not be affected by the stock dividends issued.
(7) Method for determining the fair value of financial assets and financial liabilities
Where there is an active market for a financial instrument, the companyshall determine its fair value by quoting in the active market. Where thereis no active market for the financial instrument, the company shalldetermine its fair value by means of valuation technology. In valuation,the company uses valuation techniques applicable in the current situationand supported by sufficient available data and other information to selectinput values consistent with the characteristics of assets or liabilitiesconsidered by market participants in transactions of related assets orliabilities, and gives priority to relevant observable input values as far as
possible. Use unobservable inputs only when relevant observable inputscannot be obtained or are impracticable to obtain.Upon initial recognition, the fair value of financial assets or financialliabilities is determined by the quoted price of the same assets orliabilities in the active market or other valuation technology that only usesobservable market data, the Company defers the difference between thefair value and the transaction price. After initial recognition, the Companyrecognizes the deferred difference as gain or loss in the correspondingaccounting period according to the changes of a certain factor in thecorresponding accounting period.
(8) Impairment of Financial Assets
Based on the expected credit loss, the Company shall recognise theimpairment loss on financial assets measured at amortized cost, debtinstrument investment at fair value through other comprehensive income.(a) The approach of recognition loss allowance for expected credit lossesConsidering the reasonable and valid information such as past events,current conditions and forecast of future economic conditions, andweighted by the risk of default, the Company calculates the probabilityweighted amount of the present value of the difference between the cashflow receivable under the contract and the expected cash flow to bereceived, and confirms the expected credit loss.i. General approachThe Company assess whether the credit risk of financial instruments indifferent stages at each reporting date has increased significantly. If thefinancial instruments' credit risk have not increased significantly afterinitial recognition, it will be included in phase 1, and the Companymeasures the loss allowance for those instruments at an amount equal to12-month expected credit losses; if the financial instruments' credit riskhave increased significantly but without objective evidence forimpairment after initial recognition, it will be included in phase 2, and theCompany measures the loss allowance of those instruments at anamount equal to lifetime expected credit losses; if the financial asset thatis evidently credit-impaired after initial recognition, it will be included inphase 3, and the Company measures the loss allowance of thosefinancial instruments at an amount equal to lifetime expected creditlosses. For financial instruments with low credit risk on the balance sheetdate (e.g.fixed deposits in commercial banks with higher credit rating,financial instruments with external credit rating above "investmentgrade"), the Company assumes that the credit risk has not increasedsignificantly since the initial recognition and chooses to measure the lossprovision according to the expected credit loss in the next 12 months.ii. Simplified approach
For accounts receivables and notes receivables related to revenues, theCompany does not include the significant financing component or doesnot consider the financing components in contracts less than one year, it
will measure the loss allowance according to the expected credit loss ofthe whole duration.(b) Criteria for determining whether credit risk has increased significantlysubsequent to the initial recognitionIf the probability of default of a financial asset in lifetime as determinedon the balance sheet date is significantly higher than the probability ofdefault in lifetime as determined at the initial recognition, the credit risk ofthe financial asset increases significantly.No matter what method the Company is applied to evaluate whethercredit risk has increased significantly, it usually inferred that the creditrisk of the financial instrument has increased significantly if the contractpayment delay exceeds 30 days, unless the Company can get thereasonable and valid information at reasonable cost to evidence that thecredit risk of the financial instrument has not increased significantly sincethe initial recognition.Except in special cases, the Company shall use the change of defaultrisk in the next 12 months as a reasonable estimate of the change ofdefault risk in lifetime to determine whether the credit risk has increasedsignificantly to the initial recognition(c) Approach of assessing expected credit risk on a portfolio basis anddetermine basis
The company evaluates credit risk individually for the credit risk ofsignificantly different notes receivables, accounts receivables and otherreceivables with the following characteristics. Such as: accountsreceivables in dispute with the other party or involving litigation orarbitration; notes receivables, accounts receivables that have shownclear signs that the debtor is likely to be unable to meet repaymentobligations.When it is impossible to evaluate the expected credit loss information ofan individual financial asset at a reasonable cost, the Company dividesthe receivables into several portfolio according to the credit riskcharacteristics, and calculates the expected credit loss on collectivebasis. The basis for determining the portfolio is as following:
Name
Name | Approach of assessing expected credit risk |
Bank acceptance bill Portfolio; Commercial acceptance bill Portfolio | For notes receivables divided into portfolio, the bank acceptance bill and commercial acceptance bill refer to the historical credit loss experience, and combines the current situation and the forecast of future economic situation respectively.The Company calculates the expected credit loss based on the default risk exposure and the expected credit loss rate of the whole duration. |
Risk Portfolio
Risk Portfolio | For accounts receivables divided into risk portfolio, the Company refers to the historical credit loss experience, and combines the current situation and the forecast of future economic situation, andprepares a comparison table between overdue ages of accounts receivables and expected credit loss rate of the whole duration to calculate the expected credit loss. |
Other Portfolio | The Company classifies items without significant recovery riskreceivables as other portfolio such as items from subsidiaries in the consolidation scope, tax refunds receivable, collection and withholding of funds. There is no provision for bad debt for them. |
The Company shall take the provision or transfer the loss into the current profit and loss.For the debt instrument investment measured at fair value through other comprehensiveincome, the Company shall adjust other comprehensive income while recording theimpairment loss or gain into the current profit and loss.
11. Inventory
(1) Classification of inventory
Inventories are classified as: raw materials, semi-finished goods, stock commodities,consigned processing materials, goods in progress and revolving materials (includinglow-cost consumables), etc.Measurement method of dispatched inventoriesDispatched materials and stock commodities are accounted for by using the weightedaverage method.
(2) Basis to determine net realizable values of inventories and method of provision forstock obsolescencea) Determination basis of net realizable values of inventoriesi. In normal operation process, for merchandise inventories held directly for sale,including stock commodities (finished goods) and materials for sale, their netrealizable values are determined at their estimated selling prices minus theirestimated selling expenses and relevant taxes and surcharges.ii. In normal operation process, for material inventories that need furtherprocessing, their net realizable values are determined at the estimated sellingprices of finished goods minus estimated costs to completion, estimated sellingexpenses and relevant taxes and surcharges.iii. For inventories held to execute sales contract or service contract, their netrealizable values are calculated on the basis of contract price. If the quantitiesof inventories specified in the sales contracts are less than the quantities held
by the Company, the net realizable value of the excess portion of inventoriesshall be based on general selling prices.iv. The materials held for production shall be measured at cost if the netrealizable value of the finished products is higher than the cost. If a decline inthe value of materials shows that the net realizable value of the finishedproducts is lower than the cost, the materials shall be measured at the netrealizable value.
b) Provision for stock obsolescencei.Provisions for stock obsolescence are made at the lower of costs or net realizablevalues on a single basis.ii.For inventories with large quantity and relatively low unit prices, the provision forstock obsolescence shall be made on the ground of the categories of inventories.
(3) Inventory system
The Company adopts perpetual inventory system and takes physical inventory counts ona regular basis.
(4) Amortization method of revolving materials
A.Amortization method of low-cost consumables:
Low-cost consumables are amortized in full at once.B.Amortization method of packaging materialsPacking materials are amortized in full at once when fetched for use by the Company.
12. Contract assets
A contract asset is a company's right to receive consideration for goods transferred to acustomer, and this right depends on factors other than the passage of time.Thecompany's contract assets mainly include completed and unsettled assets and qualityguarantee deposit.The contract assets and contract liabilities under the same contractshall be shown on a net basis, and the contract assets and contract liabilities underdifferent contracts shall not be set off.
13. Assets held for sale
(1) Scope of a non-current assetheld for sale and a disposal group
A non-current asset or disposal group is classified as held for sale when a companyrecovers its carrying value primarily through the sale (including the exchange of non-
monetary assets of a commercial nature) rather than through the continuous use of sucha group.A disposal group is a group of assets that are disposed as a whole through sales or otherways in one transaction and liabilities directly related to these assets delivered in thetransaction.
(2) Recognition criteria of a non-current assetheld for sale and a disposal groupThe Company recognizes its component (or non-current asset) that satisfies the followingconditions as assets held for sale:
a)The assets or disposal group must be available for immediate sale in its presentcondition subject only to terms that are usual and customary for sales of such assetsor disposal groups;b) Its sale must be highly probable. The Company has already made a decision todispose the component and has a commitment from the purchaser, the transfer willbe completed within one year. If it requires shareholders’ approval or supervisors’approval according to regulations, it has already received approval from the generalmeeting of stockholders or relative authority institution.
(3) Accounting treatment andpresentation of a non-current asset heldforsale and adisposal groupa) The non-current asset or disposal group is first classified as held for sale, theCompany should measure the non-current assets or assets and liabilities made upof disposal group in accordance with relevant accounting standards.b) When the Company measure a non-current asset or disposal group held for saleinitially or re-measure at balance sheet date subsequently, the impairment lossshould be recognized if the book value is higher than fair valueless costs to sell atthe amount of the difference of these two in profit and loss, the provision for assetsheld for sale need to be recognized at the same time. For the impairment of disposalgroup, should write off goodwill if existing, and then write down the related assetsproportionally. Depreciation or amortization should cease for the non-current assetheld for sale.c) No matter the asset is classified as individual asset held for sale or assetbelonging to disposal group, the asset is presented as current assets under “assetsheld for sale” item; liabilities related to the asset transferred in the disposal groupheld for sale is presented as current liabilities under “liabilities held for sale” item inthe balance sheet.d) The Company is committed to a sale plan involving loss of control of subsidiaryshall classify all the assets and liabilities of that subsidiary held for sale inconsolidated balance sheets when the above criteria are met, regardless of whetherthe Company retain a non–controlling interests in its former subsidiary after the sale.In the balance sheets of parent company the investment should be classified as heldfor sale in full.In the consolidated financial statements, all assets and liabilities of thesubsidiaries are classified as held for sale.
14. Long-term equity investment
(1) Recognition of the initial investment costs of long-term equity investments
a) For long-term equity investments from business combinations, the initialinvestment cost shall be recognized in accordance with the provisions mentioned inNotes V.5. Accounting Method for Long-term Equity Investment from BusinessCombinations under Common Control and Business Combination not underCommon Control.b) Except for the long-term equity investments arising from business combinations,those obtained by other means shall recognize their initial investment costs inaccordance with the following provisions:
i.For the long-term equity investments obtained by cash paid, the Companyrecognizes the actual purchase price as the initial investment costs. The initialinvestment costs include directly related expense, taxes and other necessaryexpenses of obtaining long-term equity investments.ii.For the long-term equity investments acquired by the issue of equity securities(equity instrument), the initial investment cost shall be the fair value of theequity securities (equity instrument) issued. If the fair value of the long-termequity investment obtained is more reliable than equity securities issued, theinitial investment cost shall be the fair value of the long-term equity investmentmade by the investors. The cost directly attributable to the issue of equitysecurities (equity instrument), including fees, commissions, etc., write-downspremium price of the issue, if premium price of the issue is insufficient, write-downs surplus reserve and undistributed profit in turn. For the long-term equityinvestments acquired by the issue of debt securities (debt instrument) ,reference through the issuance of equity securities (equity instrument).iii. For long-term equity investments obtained by debt restructuring, theCompany recognizes the fair value of shares of debt-for-equity swap as theinitial investment costs.iv.For long-term equity investments obtained by non-monetary assets exchange,under the condition that an exchange of non-monetary assets is of commercenature and the fair value of assets exchanged can be reliably measured, non-monetary assets traded in is initially stated at the fair value of the assets tradedout, unless there is conclusive evidence indicating that the fair value of theassets traded in is more reliable; if the above conditions are not satisfied, initialinvestment costs of long-term equity investments traded in shall be recognizedat the book value of the assets traded out and the relevant taxes andsurcharges payable.Expenses, taxes and other necessary expenses incurred to the Company andthat are directly related to the obtainment of long-term equity investments shallbe recognized as the initial investment costs of long-term equity investments.For long-term equity investments obtained by the Company by any means,cash dividends or profits declared but not yet distributed in the actual payments
or the consideration actually paid for the investment shall be separatelyaccounted as dividends receivable and shall not constitute the costs of long-term equity investments.
(2) Subsequent measurement and recognition of gains and losses of long-term equityinvestmentsa) Long-term equity investment measured under cost methodIf acompany can control an investee, namely investment in subsidiary, the long-termequity investment shall be measured under the cost method.For long-term equity investments accounted at the cost method, except cashdividends or profits declared but not yet distributed which are included in the actualpayments or the consideration actually paid for the investment, the cash dividendsor profits declared by the investee shall be recognized as the investment incomeirrespective of net profits realized by the investee before investment or afterinvestment.b) Long-term equity investments measured under the equity methodi. For the long-term equity investment which has joint control or significantinfluence over the investee, the equity method is adopted for accounting.
ii.For long-term equity investments measured at the equity method, if the initialinvestment costs are higher than the investor’s attributable share of the fairvalue of the investee’s identifiable net assets, no adjustment will be made to theinitial costs of the long-term equity investments; if the initial investment costsare lower than the investor’s attributable share of the fair value of the investee’sidentifiable net assets, the difference shall be recognized in current profit andloss and at the same time the adjustment will be made to the initial costs of thelong-term equity investments.
iii.After obtaining the long-term equity investments, the Company shall,according to the shares of net profits and other comprehensive income realizedby the investee that shall be enjoyed or borne by the Company, recognize theprofit and loss on the investments and adjust the book value of the long-termequity investments. When recognizing the net profits and losses and othercomprehensive income of the investee that the Company shall enjoy or bear,the Company shall make a recognition and calculation based on the net bookprofits and losses of the investee after appropriate adjustments. However,where the Company is unable to obtain the relevant information due to failure toreasonably determine the fair value of the investee’s identifiable assets, minordifference between the investee’s identifiable assets and the book value thereof
or other reasons, the profits or losses on the investments shall be directlycalculated and recognized based on the net book profits and losses of theinvestee. The Company shall calculate the part distributed from cash dividendsor profits declared by the investee and correspondingly reduce the book valueof the long-term equity investments.
When recognizing the income from investments in associates and joint ventures,the Company shall write off the part of incomes from internal unrealizedtransactions between the Company and associates and joint ventures which areattributable to the Company and recognize the profit and loss on investmentson such basis. Where the losses on internal transactions between the Companyand the investee fall into the scope of losses on assets impairment, full amountsof such losses shall be recognized. Profit and loss from internal unrealizedtransactions between the Company’s subsidiaries included into the combinationscope and associates and joint ventures shall be written off according to theabove principles and the profit and loss on investments thereafter shall berecognized on such basis.
When the share of net loss of the investee attributable to the Company isrecognized, it is treated in the following sequence: Firstly, write off the bookvalue of the long-term equity investments; where the book value of the long-term equity investments is insufficient to cover the loss, investment losses arerecognized to the extent that book value of long-term equity which form netinvestment in the investee in other substances and the book value of long-termreceivables shall be written off; after all the above treatments, if the Companystill assumes additional obligation according to investment contracts oragreements, the obligation expected to be assumed should be recognized asprovision and included into the investment loss in the current period. If theinvestee is profitable in subsequent accounting periods, the Company shalltreat the loss in reverse order against that described above after deductingunrecognized share of loss: i.e. write down the book value of the recognizedprovision, then restore the book value of long-term interests which substantiallyform net investments in the investee, then restore the book value of long-terminvestments, and recognize investment income at the same time.
(3) Basis for judgment of common control or significant influence over the investee
a)Basis for judgment of common control over investeeCommon control is the contractually agreed sharing of control of an arrangement,which exists only when decisions about the relevant activities require the unanimousconsent of the parties sharing control. Relevant activities of an arrangement usually
include selling and purchasing of goods or services, managing financial assets,acquiring or disposing of assets, researching and developing activities and financingactivities. A joint venture is a joint arrangement whereby the joint ventures haverights to the net assets of the arrangement. The parties have rights to the assets,and obligations for the liabilities, relating to the arrangement, which is a jointoperation, but not a joint venture.
c) Basis for judgment of significant influence over investeeThe term “significant influence” refers to the power to participate in decision-makingon the financial and operating policies of the investee, but with no control or jointcontrol over the formulation of these policies. Where the Company is able to exertsignificant influence over the investee, the investee is its associate.
15. Fixed assets
(1) Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities,providing services, renting or business management with useful life exceeding oneaccounting year. Fixed assets are recognized when the following criteria are satisfiedsimultaneously:
a) It is probable that the economic benefits relating to the fixed assets will flow intothe Company;b) The cost of the fixed assets can be measured reliably.
(2) Depreciation of fixed assets
Category
Category | Depreciation method | Estimated useful life (Yr) | Estimated residual value rate (%) | Annual depreciation rate (%) |
Buildings andconstructions | Straight-line method | 20~25 | 5 | 3.80~4.75 |
Machinery equipments | Straight-line method | 10 | 5 | 9.50 |
Transportation equipments | Straight-line method | 10 | 5 | 9.50 |
Other equipments | Straight-line method | 8 | 5 | 11.88 |
(3) Recognition standard, valuation method and depreciation method for fixed assetsacquired under financing leasea) At the inception of the lease, the Company recognizes the leased fixed assetsmeeting the standards for financial leases as fixed assets acquired under financingleasesb) At the inception of the lease, the Company shall state the assets acquired underfinancing lease at the lower of the fair value of the leased assets or the present
value of the minimum lease payments, as well as the initial and direct expensesoccurred, recognize a long-term payable at the amount of the minimum leasepayments, and shall charge the difference of the lower of the fair value of the leasedassets or the present value of the minimum lease payments and the minimum leasepayments to unrecognized finance expenses. Unrecognized finance expenses shallbe amortized at the effective interest rate method in each period during the leaseterm.c) Adapt the same depreciation method as the one used on other fixed assetsowned by the company. If there is reasonable assurance that the Company willobtain the ownership of the leased assets when the lease term expires, the leasedassets should be depreciated over its useful life; if there is no reasonable assurancethat the Company will obtain the ownership of the leased assets when the leaseterm expires, the leased assets should be depreciated over the shorter of the leaseterm or the useful life of the leased assets.
16. Construction in progress
(1) Categories of constructions in progress
Constructions in progress are accounted on individual project basis.
(2) Criteria and commencement of conversion of constructions in progress into fixedassetsThe book entry values of the fixed assets are stated at total expenditures incurred beforeconstruction in progress reaches the working condition for their intended use. For self-operating projects, total expenditures are measured according to the expenditures ofdirect materials, direct labor, direct measurement mechanical construction costs andother expenditures; for contracting projects, total expenditures are measured accordingto project costs payable and other expenditures. Borrowing costs incurred before theprojects that are undertaking with borrowing costs reach working condition for theirintended use and meeting the condition for capitalization shall be capitalized andincluded into the costs of construction in progress.
For construction in progress that has reached working condition for intended use but forwhich the completion of settlement has not been handled, it shall be transferred into fixedassets at the estimated value according to the project budget, construction price or actualcost, etc. from the date when it reaches the working condition for intended use and thefixed assets shall be depreciated in accordance with the Company’s policy on fixed assetdepreciation; adjustment shall be made to the estimated value based on the actual costafter the completion of settlement is handled, but depreciation already provided will notbe adjusted.
17. Borrowing costs
(1) Scope of borrowing costs
The Company’s borrowing costs include interest thereon, amortization of discounts orpremiums, ancillary expenses and exchange differences incurred from foreign currencyloan, etc.
(2) Recognition principles of capitalization of borrowing costs
The borrowing costs incurred to the Company and directly attributable to the acquisitionand construction or production of assets eligible for capitalization should be capitalizedand recorded into relevant asset costs; other borrowing costs should be recognized ascosts according to the amount incurred and be included into the current profit and loss.Assets eligible for capitalization include fixed assets, investment properties, inventoriesand other assets which may reach the working condition for their intended use or sale byacquisition and construction or production activities for quite long time.
(3) Recognition of capitalization period of borrowing costs
a) Recognition of commencement of capitalization of borrowing costsBorrowing costs may be capitalized when asset disbursements have already beenincurred, borrowing costs have already been incurred and the acquisition andconstruction or production activities which are necessary to prepare the assets fortheir intended use or sale have already been started. Among which, assetdisbursements include those incurred by cash payment, the transfer of non-cashassets or the undertaking of interest-bearing debts for acquiring and constructing orproducing assets eligible for capitalization.
b) Recognition of period of capitalization suspension of borrowing costsIf the acquisition and construction or production activities of assets eligible forcapitalization are interrupted abnormally and this condition lasts for more than threemonths, the capitalization of borrowing costs should be suspended. The borrowingcosts incurred during interruption are charged to profit or loss for the current period,and the capitalization of borrowing costs continues when the acquisition andconstruction or production activities of the asset resume. If the interruption isnecessary for the acquisition and construction or production to prepare the assetsfor their intended use or sale, the capitalization of borrowing costs should continue.
c) Recognition of period of capitalization cessation of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructedor produced assets eligible for capitalization have reached the working condition fortheir intended use or sale. Borrowing costs incurred after the assets eligible forcapitalization have reached the working condition for their intended use or saleshould be recognized as the current profit and loss when they incur.
If all parts of the acquired and constructed or produced assets are completed, eachpart may be used or sold externally in the process of continuous construction ofother parts and the necessary acquisition or production activities have beensubstantially completed to make the part of assets reach the working condition fortheir intended use or sale, the capitalization of borrowing costs related to the part ofassets should be ceased; if all parts of the acquired and constructed or producedassets are completed but the assets cannot be used or sold externally until overallcompletion, the capitalization of borrowing costs should cease at the time of overallcompletion of the said assets.
(4) Recognition of capitalized amounts of borrowing costs
a) Recognition of capitalized amounts of interest on borrowing costsDuring the period of capitalization, capitalized amount of the interest of eachaccounting period (including amortization of discounts or premiums) shall berecognized according to the following provisions:
i.As for special loan borrowed for acquiring and constructing or producingassets eligible for capitalization, borrowing costs of special loan actuallyincurred in the current period less the interest income of the loans unused anddeposited in bank or return on temporary investment should be recognized asthe capitalization amount of borrowing costs.ii.As for general loans used for acquiring and constructing or producing assetseligible for capitalization, the interest of general loans to be capitalized shouldbe calculated by multiplying the weighted average of asset disbursements ofthe part of accumulated asset disbursements in excess of special loans by thecapitalization rate of used general loans. The capitalization rate is calculated byweighted average interest rate of general loans.iii. Where there are discounts or premiums on loans, the amounts of interest foreach accounting period should be adjusted taking account of amortizablediscount or premium amounts for the period by effective interest method.iv.During the period of capitalization, the capitalized amount of interest of eachaccounting period shall not exceed the current actual interest of the relevantloans.
b) Recognition of capitalized amounts of auxiliary expenses of loansi.Auxiliary expenses incurred from special loans before the acquired orconstructed assets eligible for capitalization reach the working condition for theirintended use or sale should be capitalized when they incur and charged to thecosts of assets eligible for capitalization; those incurred after the acquired orconstructed assets eligible for capitalization reach the working condition for theirintended use or sale should be recognized as costs according to the amountsincurred when they incur and charged to the current profit or loss.ii. Auxiliary expenses incurred from general loans shall be recognized as costsaccording to the amounts incurred when they occur and included in the currentprofit and loss.
c) Recognition of capitalized amount of exchange differencesDuring the period of capitalization, exchange differences incurred from the principaland interest of special foreign currency loans should be capitalized and included inthe costs of the assets eligible for capitalization.
18. Intangible assets
(1) Measurement, useful life and impairment test
Initial measurement of intangible assetsInitial measurement of outsourcing intangible assetsCosts of outsourcing intangible assets shall be recognized according to the purchaseprice, related taxes and other expenses directly attributed to reaching the workingcondition for their intended use. The cost of intangible assets shall be recognized basedon present value of purchase price when deferred payment over normal credit conditionswith financial nature. The difference between actual payment and purchase price, expectfor capitalized amount, shall be included into the current profit and loss in the period ofcredit.
Initial measurement of internally researched and developed intangible assetsCosts of internally researched and developed intangible assets shall be recognizedaccording to the total expenses during the period after the assets are eligible forcapitalization and before they reach the intended purpose and the expenses that havebeen included in the previous periods shall no longer be adjusted.Expenses on the research phase of internally researched and developed intangibleassets shall be included in the current profit and loss when they incur; those on thedevelopment phase ineligible for capitalization shall be included in the current profit andloss; those eligible for capitalization shall be recognized as intangible assets. If it is
unable to distinguish expenditure on the research phase and expenditure ondevelopment phase, the research and development expenditures shall be all included inthe current profit and loss.
Subsequent measurement of intangible assetsThe useful lives of intangible assets are analyzed on acquisition. Intangible assetsobtained by the Company are divided into intangible assets with limited useful lives andintangible assets with indefinite useful lives.
Subsequent measurement of intangible assets with limited useful livesThe intangible assets with limited useful lives are amortized on a straight-line basis whenthey reach intended use over their useful lives with no residual value reserved.Amortizations of intangible assets are usually recorded into the current profit and loss;where the economic benefits of an intangible asset are realized by the products or otherassets produced thereafter, the amortizations are recorded into the costs of the relevantassets.
Category, estimated useful life, estimated net residual value rate and annual amortizationrate of intangible assets are shown below:
Category of intangible
assets
Category of intangible assets | Estimated useful life (years) | Estimated net residual value rate (%) | Annual amortization rate (%) |
Land use right | 50 | 0 | 2.00 |
Trademark | 7-10 | 0 | 14.29-10.00 |
Computer software | 10 | 0 | 10.00 |
The useful lives and amortization methods of intangible assets with limited useful lives onthe balance sheet date shall be reviewed.Subsequent measurement of intangible assets with indefinite useful livesIntangible assets with indefinite useful lives are not amortized in the holding period, butimpairment tests are performed at the end of each year.
Estimates of useful lives of intangible assetsa) For intangible assets from any contractual right or other statutory rights, theiruseful lives shall be recognized according to the period no more than that of thecontractual or other statutory rights; when the contractual right or other statutoryrights contract is extended due to renewal of contracts and there is evidence that therenewal of the Company does not need large costs, the renewal period shall beincluded into the useful lives.
b) Where the contract or the law fails to specify the useful lives, the Companyintegrates situations in all aspects and determine the period of intangible assets thatcan bring economic benefits for the Company by hiring the relevant experts todemonstrate or comparing with the situation of the industry as well as referring to theCompany’s historical experience or otherwise.
c) If it is still unable to reasonably determine that intangible assets may bringeconomic benefits for the Company according to the above methods, the intangibleassets are taken as intangible assets with indefinite useful lives.
(2) Accounting policies of internal research and development expenditureAccording to the actual situation of the research and development, the Companyclassifies the research and development project into that on the research phase and thaton the development phase.
a) Research stageResearch stage is the stage when creative and planned investigations and researchactivities are conducted to acquire and understand new scientific or technologicalknowledge.b) Development stageDevelopment stage is the stage when the research achievements or otherknowledge are applied to a plan or design, prior to the commercial production or use,so as to produce any new or substantially improved material, device or product.Expenditure of an internal research and development project on the research phaseshall be included in current profit and loss when it occurs.Specific criteria for qualifying expenditure on the development phase forcapitalizationExpenditure on the development phase of an internal research and developmentproject shall be recognized as intangible assets only when the following conditionsare simultaneously satisfied:
a) It is technically feasible to finish intangible assets for use or sale;b) It is intended to finish and use or sell the intangible assets;c)The usefulness of intangible assets to generate economic benefits shall be proved,including being able to prove that there is a potential market for the productsmanufactured by applying the intangible assets or there is a potential market for theintangible assets themselves or the intangible assets will be used internally;d) It is able to finish the development of the intangible assets, and able to use or sellthe intangible assets, with the support of sufficient technologies, financial resources
and other resources;e) The expenditure attributable to the intangible asset during its development phasecan be measured reliably.
19.Non-current assets impairment
If there are impairment indicators of long-term equity investment, investment propertymeasured at cost model, fixed assets, construction in progress, intangible assets withindefinite useful lives and other long-term assets at balance sheet date, impairment testshould be performed. If the result of impairment test shows that recoverable amount isless than its book value, the difference should be provided for impairment and recordedinto impairment loss. The recoverable amount is the higher of fair values less costs ofdisposal and the present values of the future cash flows expected to be derived from theasset. Provision for impairment is calculated and recognized on the basis of individualasset. If recoverable amount of individual asset is difficult to be estimated, the Companyshould recognize the recoverable amount of the asset group which the individual assetbelongs to. Asset group is the minimum asset group which can generate cash inflowseparately.The Company should perform impairment test for goodwill and intangible assets withindefinite life at least at each year end, no matter whether there is impairment indicator.When the Company performs impairment test, book value of goodwill arising frombusiness combination should be amortized to relevant asset group using the reasonablemethod from the date of purchase. If it is difficult to amortize it to relevant asset group,amortize it to relevant asset group portfolio. Apportion book value of goodwill to relevantasset group or asset group portfolio according to the proportion of fair value of assetgroup or asset group portfolio accounting for total amount of relevant asset group orasset group portfolio. If fair value is difficult to be measured reliably, amortize accordingto the proportion of book value of asset group or asset group portfolio accounting for totalamount of relevant asset group or asset group portfolio. When perform impairment testfor asset group or asset group portfolio including goodwill, if there is impairment indicatorof asset group or asset group portfolio relevant to goodwill, perform impairment test forasset group or asset group portfolio without goodwill firstly, calculate its recoverableamount, compare with relevant book value and recognize impairment loss. Then performimpairment test for asset group or asset group portfolio including goodwill, compare bookvalue of the asset group or asset group portfolio (including proportional book value ofgoodwill) and its recoverable amount, if recoverable amount of relevant asset group orasset group portfolio is less than its book value, recognize impairment loss of goodwill.Once impairment loss stated above is recognized, reversal is not allowed in thesubsequent accounting periods.
20. Long-term deferred expenses
(1) Scope of long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been alreadyincurred but will be born in this period and in the future with an amortization period ofover 1 year (exclusive).
(2) Initial measurement of long-term deferred expenses
Long-term deferred expenses shall be initially measured according to the actual costsincurred.
(3) Amortization of long-term deferred expenses
Long-term deferred expenses are amortized using the straight-line method over thebeneficial period.
21. Contract liability
Contract liabilities refer to the obligation of a company to transfer commodities tocustomers for consideration received or receivable from customers.If the customer haspaid the contract consideration or the company has obtained an unconditional right toreceive the goods prior to the company's transfer of the goods to the customer, thecompany will show the amount received or receivable as a contractual liability in whichearlier the customer actually pays the amount or the amount becomes due.The contractassets and contract liabilities under the same contract shall be shown on a net basis, andthe contract assets and contract liabilities under different contracts shall not be set off.
22. Employee benefits
(1) Accounting treatment of short-term benefits
Short-term benefits are the benefits that the Company expect to pay in full within 12months after the reporting period in which the employee provided relevant services,excluding the compensation for employment termination.
Short-term benefits include: wage, bonus, allowance and subsidy; employee welfare,social securities including health insurance and work injury insurance; housing commonreserve fund; union expenditure and employee training expenditure; short-term paidleave; short-term profit-sharing; non-monetary welfare and other short-term benefits.
Actual short term benefits will be recognized as liability during the accounting period inwhich the employee is providing the relevant service to the Company. The liability will be
included in the current profits and losses or the cost relevant assets.
(2) Accounting treatment of post-employment benefits
The defined contribution plan of the Company include payments of basic pension,unemployment insurance, annuity, etc. that accord to relevant provisions. The amountwhich the Company deposit on balance sheet date in exchange for the service of theemployee during the accounting period will be recognized as employee benefits liabilityand shall be included into the profit or loss for the current period.
(3) Accounting treatment of termination benefits
Termination benefits are the benefits the Company provide to the employee when theCompany terminates the employment before labor contract expires or encouragesvoluntary resignation. Employee benefits liabilities shall be recognized and included intoprofit or loss for the current period on the earlier date of the two following circumstances:
A.When the Company is not able to withdraw the benefits from termination ofemployment or resignation persuasion unilaterally;B.When the Company recognizes costs and fees relevant to reforming the terminationbenefits payment.
(4) Accounting treatment of other long-term employee benefits
Other long-term employee benefits are all employee benefits other than short-termbenefits, post-employment benefits and termination benefits. At the end of reportingperiod, the company will recognize the employee benefits cost from other long-termemployee benefits as the following components:
a) Service cost;b) Net amount of interest from other long-term employee benefits net liabilities orassets;c) Changes from recalculation of the net liabilities or assets from other long-termemployee benefits.In order to simplify related accounting procedure, the net amount of the above subjectsshall be included into current profit or loss or the cost of relevant assets.
23. Provisions
(1) Recognition principles of provision
When obligations related to external guarantees, pending actions or arbitration, productquality assurance, onerous contracts, reorganization and contingencies satisfy thefollowing three conditions, they shall be recognized as provision:
a) This obligation is a present obligation of the Company;b) The settlement of such obligation is likely to result in outflow of economic benefitsfrom the Company; andc) The amount of the obligation can be measured reliably.
(2) Measurement method of provision
The amount of provision is measured at the best estimate of expenses required forcontingencies.a) If there is continuous range for the necessary expenses, and probabilities ofoccurrence of all the outcomes within this range are equal, the best estimate shallbe determined at the median of the range.b) The best estimate shall be accounted as follows in other cases:
i.If the contingency involves a single item, the best estimate shall be determined atthe most likely outcome.ii.If the contingency involves two or more items, the best estimate should bedetermined according to all the possible outcomes with their relevant probabilities.
24. Share-based payment
Share-based payment is classified as equity-settled share-based payment and cash-settled share-based payment.
1) Accounting treatment on the date of granting
The Company does not make any accounting treatment on the date of granting, neitherfor equity-settled share-based payment nor for cash-settled share-based payment,except that the right of the share-based payment can be exercised immediately.
2) Accounting treatment on each balance sheet date within vesting periodOn each balance sheet date within vesting period, the Company records the serviceprovided by employees or other party as cost and expense, and recognizes equity orliability at the same time.For the share-based payment attached with market conditions, once employees satisfyall conditions except market conditions, the service acquired can be recognized. If theperformance condition is not market condition, the estimate for previous periods can berevised when the vesting period is determined and subsequent information shows thatthe estimate for conditions of exercising rights requires adjustments.For equity-settled share-based payment related with employees, charge the service intocosts, expenses and capital reserve (other capital reserve), using the fair value of theequity instrument on the date of granting. The subsequent changes of fair value shouldnot be recognized. For cash-settled share-based payment related with employees,recalculate fair value of the equity instrument at each balance sheet date and recognizerelated costs, expenses and employee benefit payable.At each balance sheet date within vesting period, the Company makes the best estimateand revises the number of equity instrument that can be exercised according to the latestsubsequent information such as change of number of employees who can exercise rights.Use fair value and the number of of equity instrument stated above to calculate
cumulative amount of costs and expenses that should be recognized by this period andthen deduct the cumulative amount already recognized in the previous period. Thebalance is the amount of cost and expense that should be recognized in the currentperiod.
3) Accounting treatment after the date when rights can be exercised
For equity-settled share-based payment, after the date when rights can beexercised, noadjustment shall be made to the total amount of the cost expense and equity alreadyrecognized. The Company recognizes share capital and capital premium, and carryforward the capital reserve (other capital reserve) recognized within vesting period at thehe date when rights can be exercised.For cash-settled share-based payment, the Company shall not recognize costs andexpenses. The change of fair value of liability (employee benefit payable) should berecorded into current profit or loss (profit or loss arising from fair value changes) after thedate when rights can be exercised.
4) Accounting treatment for repurchasing shares regarding employee option incentive.When the Company encourages employees in the form of repurchasing shares, totalexpenditure of repurchasing shares is regarded as treasury stock and registered forcheck. At each balance sheet date within vesting period, charge the employee serviceacquired into costs and expenses, and meanwhile increase capital reserve (other capitalreserve), using fair value of the equity instrument at the date of granting. When theemployee exercises the right to buy the Company’s shares and receives the amount,write off the cost of treasury stock delivered to the employee and the cumulative amountof capital reserve (other capital reserve) recognized within the vesting period, meanwhilethe balance adjusting capital reserve (share capital premium).
25.Revenue
Accounting policies adopted in revenue recognition and measurement
25.1 Principle and measurement method of revenue recognition
(1) Revenue recognition
The Company has fulfilled its contractual performance obligation to recognize revenuewhen the customer acquires control of the relevant goods. On the beginning date of thecontract, the Company evaluates the contract, identifies the individual performanceobligations contained in the contract, and determines whether the individual performanceobligations are performed within a certain period of time or at a certain point. Then, theCompany recognizes the revenue when the individual performance obligations arefulfilled.
(2) Revenue measurement
If the contract contains two or more performance obligations, the Company shall, on thecommencement date of the contract, apportion the transaction price to each singleperformance obligation according to the relative proportion of the separate selling price ofthe commodity or service committed by each single performance obligation, and measurethe revenue according to the transaction price apportioned to each single performance
obligation.In determining the transaction price, the Company will take into account theimpact of variable consideration, material financing elements existing in the contract,non-cash consideration and customer consideration payable, and it is assumed that thegoods will be transferred to the customer in accordance with the provisions of the existingcontract and that the contract will not be canceled, renewed or changed.
25.2 Specific revenue recognition policies
(1) Sales contract
The Company's sales products, promotional products and other goods belong to theperformance obligations performed at a certain point.The Company recognizes the sales revenue when the goods are delivered to thecustomer and the control of the goods is transferred. For export sales business, theCompany recognizes the revenue after the goods are delivered and the customsclearance procedures are completed.According to the marketing policy, and the dealer sales of final product, the Companygives the dealer a percentage discount, and regularly or irregularly settles with dealers.At the time of settlement, the discounts are recorded in a sales invoice issued. The netamount of invoice value after the deduction of the discount sales income is recognized asrevenue according to the accrual principle. The discounts that have occurred and havenot yet been settled at the end of the current period shall be taken provision from thesales revenue and recorded into the contract liabilities.
(2) Service Contract
The service contract provided by the Company contains the performance obligation ofthe lease service provided. Since the customer obtains and consumes the economicbenefits brought by the performance of the contract at the same time, it is regarded asthe performance obligation performed within a certain period of time and is equallyapportioned and confirmed during the service provision.
23. Government grants
(1) Types of government grants
Government grants are monetary assets and non-monetary assets acquired free ofcharge by the Company from the government, including government grants relatedto assets and government grants related to income.Government grants related to assets are government grants that are acquired by theCompany and used for forming long-term assets through purchasing andconstructing or other ways.Government grants related to income are government grants other than governmentgrants related to assets.
(2) Recognition principles of government grants
Government grants are recognized when both of the following conditions are met:
a) The Company can meet the attached conditions for the government grants;
b) The Company can receive the grants.
(3) Measurement of government grants
a) If a government grant is a monetary asset, it shall be measured in the light ofthe received or receivable amount.b) If a government grant is a non-monetary asset, it shall be measured at its fairvalue; and if its fair value cannot be obtained in a reliable way, it shall bemeasured at a nominal amount (a nominal amount is CNY 1).
(4) Accounting treatment method of government grants
a) The government grants related to assets shall be set off of the book value ofthe related assets or recognized as deferred income at the actual entry amounton acquisition. Government grants recognized as deferred income shall beallocated evenly over the useful lives of the relevant assets, and included in thecurrent profit or loss. Government grants measured at the nominal amount shallbe directly included in current profit and loss.b) Government grants related to income shall be separately handled accordingto the following circumstances:
i.If government grants related to income are used to compensate theCompany’s relevant expenses or losses in future periods, suchgovernment grants should be recognized as deferred income onacquisition and be included into the current profit and loss or written offof the related costs when the relevant expenses, losses are recognized.ii.If government grants related to income are used to compensate theCompany’s relevant expenses or losses incurred, such governmentgrants are directly included into the current profit and loss on acquisitionor written off of the related costs.b) Government grants related to assets and related to income are receivedtogether, shall be treated separately. If it is hard to separate, government grantsshall be treated as related to income as a whole.c) Government grants related to daily operation shall be recoded in otherincome or written off relevant expenses, costs. Government grants unrelated todaily operation shall be recorded in non-operating income. Financial subsidyfunds directly allocated to the company shall be offset the relevant borrowingcosts.d) Government grants already recognized required to be refunded shall behandled according to the following circumstances:
i. If the grants have written down the book value of assets, the book valueshall be adjusted.ii. If there is related deferred income, the book value of relevant deferredincome is written down and the exceeding part is recorded in the currentprofit and loss.iii. If there is no related deferred income, the exceeding part is directlyincluded in the current profit and loss.
24. Deferred tax assets and deferred tax liabilities
The Company adopts the balance sheet liability method to account for income tax.
(1) Recognition of deferred tax assets or deferred tax liabilities
a) The Company recognizes its tax base on acquisition of assets and liabilities. Onthe balance sheet date, the Company analyzes and compares the book value of theassets and liabilities and the tax base. If there are temporary differences in bookvalue of the assets and liabilities and the tax base, under the circumstance that thetemporary differences incur in the current period and meet the recognition criteria,the Company shall respectively recognize taxable temporary differences ordeductible temporary differences as deferred tax liability or deferred tax assets.
b) Recognition basis of deferred tax assetsi. Deferred tax assets incurred from deductible temporary differences arerecognized to the extent that they shall not exceed the taxable income probablyobtained in future periods to be against the deductible temporary difference. Indetermining the taxable income probably obtained in future periods, includingthe taxable income from normal production and operation activities in futureperiods and the increase of taxable income due to the reversal of taxabletemporary differences during the period of reversal of deductible temporarydifferences.ii.For deductible losses and tax credits that can be carried forward to the nextyears, the Company is likely to recognize the corresponding deferred tax assetsto the extent that the assets shall not exceed the taxable income in the futurefor deducting deductible losses and tax credits and that are probably obtainedby the Company.iii. On the balance sheet date, the Company reviews the book value of deferredtax assets. If it is probably unable to obtain sufficient taxable income in thefuture period to offset the benefits of the deferred tax assets, the Company shallwrite down the book value of the deferred tax assets; when it is probable toobtain sufficient taxable income, the write-downs shall be reversed.
c) Recognition basis of deferred tax liabilitiesThe Company recognizes the current and previous taxable temporary differencespayable but unpaid as deferred tax liabilities. But they exclude temporary differencesarising from goodwill; transactions which are formed other than from businesscombinations and neither affect the accounting profits nor affect taxable income atthe time of occurrence.
(2) Measurement of deferred tax assets or deferred tax liabilities
a) On the balance sheet date, the deferred tax assets and deferred tax liabilities aremeasured at the applicable tax rate during the period of expected recovery of theassets or liquidation of the liabilities in accordance with the provisions of the tax law.b) Where the applicable tax rate changes, the Company remeasures deferred taxassets and deferred tax liabilities recognized, except for those incurred intransactions or events directly recognized in the owner’s equity, of which the effectshall be included in the income tax expenses in the current period when the ratechanges.c) When the Company measures the deferred tax assets and deferred tax liabilities,the tax rate and tax base in consistent with the expected recovery of assets orliquidation of liabilities shall be adopted.d) Deferred tax assets and deferred tax liabilities of the Company shall not bediscounted.
25. Lease
(1) Accounting treatment method of operating lease
Lessee records rents of operating lease into cost of related assets or current profit or lossusing straight line method in each period of the lease term. Initial direct expensesincurred are recorded into current profit or loss. Contingent rents are recorded intocurrent profit or loss when occur.
Lessor includes assets used for operating lease in the related items of financialstatements. Rent of operating lease is recognized into current profit or loss using straightline method in the various period of the lease term. Initial direct expenses are recordedinto current profit or loss. Depreciate fixed asset in the operating lease using depreciationpolicy of the similar assets. Amortize other operating lease assets using systematicreasonable method. Contingent rent is recorded into current profit or loss when occur.
(2) Accounting treatment method of financing lease
As the lessee, recognize the lower of fair value of lease asset and minimum leasepayment at the beginning day of the lease as the initial value of the asset leased in andthe minimum lease payment as long-term payable, the difference as unrealized financeexpense. Bank charges, lawyer fee, travel allowances, stamp taxes and other initial directexpenses that can be attributable to lease project in the lease negotiation and signing thelease contract are recorded into the asset leased in. Unrealized finance expense isamortized in the period during the lease term and recognized as current financeexpenses using actual effective rate method. Contingent rent is recorded into currentprofit or loss when actually occur.
As the lessor, recognize the total of minimum lease amount received and initial directexpenses as the initial value of finance lease amount receivable and record the residualamount not guaranteed at the same time. Recognize the difference between the total ofminimum lease amount received, initial direct expenses and residual amount notguaranteed and present value of that as unrealized finance income. Amortize unrealizedfinance income in the period during the lease term and use effective interest rate torecognize current finance income. Contingent rent is recorded into current profit or losswhen actually occur.
26. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√ Applicable ? N/A
Content and reason of changes in
accounting policies
Content and reason of changes in accounting policies | Procedure for examination and approval | Notes | ||
The Company shall, from 1 January2020, implement the new revenue standards according to Notificationof Accounting Standard for Business Enterprises No.14 - Revenue(Caikuai [2018] No.22) revised and published by Ministry of Finance in July 2017. | N/A | According to the requirements of the new revenue standards, the comparative financial statements shall not be retroactively adjusted. | ||
The first implementation of new revenue standards will be adjusted to implement the items related to financial statements at the beginning of the year | ||||
Consolidate Balance Sheet Items Unit:CNY | ||||
Assets | Balance as at 31 December 2019 | Balance as at 1 January 2020 | Adjustment | |
Advance from customer | 6,753,595,187.64 | -6,753,595,187.64 |
Contract liabilities | 8,625,433,531.59 | 8,625,433,531.59 | |
Other payables | 6,521,146,762.07 | 3,962,515,639.56 | -2,558,631,122.51 |
Other current liabilities | 686,792,778.56 | 686,792,778.56 |
Balance Sheet of Parent Company Unit:CNY | |||
Advance from customer | 16,238,064,053.40 | -16,238,064,053.40 | |
Contract liabilities | 14,372,628,991.77 | 14,372,628,991.77 | |
Other current liabilities | 1,865,435,061.63 | 1,865,435,061.63 |
(2) Changes in significant accounting estimates
? Applicable √ N/A
(3)Since 2020, the first implementation of new revenue standards or new leasingstandards will be adjusted to implement the items related to financial statements atthe beginning of the yearApplicable
Whether it is needed to adjust the balance sheet accounts at the beginning of the year
√ Yes? No
Consolidated Balance Sheet
Unit: CNY
Assets
Assets | Balance as at 31 December 2019 | Balance as at 1 January 2020 | Adjustment |
Current assets: | |||
Cash and cash equivalents | 4,300,144,848.67 | 4,300,144,848.67 | |
Settlement reserves | |||
Lending funds | |||
Financial assets held for trading | 17,976,767,209.45 | 17,976,767,209.45 | |
Derivative financial assets | |||
Notes receivables | 659,266,780.81 | 659,266,780.81 | |
Accounts receivables | 16,080,618.65 | 16,080,618.65 | |
Account receivables financing | |||
Prepayment | 200,115,325.19 | 200,115,325.19 | |
Premiums receivable | |||
Reinsurance accounts receivable | |||
Reinsurance contract reserve | |||
Other receivables | 37,521,590.52 | 37,521,590.52 | |
Including:Interests receivable | |||
Dividends receivable | |||
Buying back the sale of financial assets | |||
Inventories | 14,433,244,696.27 | 14,433,244,696.27 | |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | 183,119,654.47 | 183,119,654.47 | |
Total current assets | 37,806,260,724.03 | 37,806,260,724.03 | |
Non-current assets: | |||
Disbursement of loans and advances | |||
Investment in debt instruments | |||
Investment in other debt instruments | |||
Long-term receivables | |||
Long-term equity investments | 25,361,651.38 | 25,361,651.38 | |
Investment in other equity instruments | |||
Other non-current financial assets | 5,050,851,671.16 | 5,050,851,671.16 | |
Investment property | |||
Fixed assets | 7,256,557,503.85 | 7,256,557,503.85 | |
Construction in progress | 263,153,505.12 | 263,153,505.12 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use asset | |||
Intangible assets | 1,747,134,144.14 | 1,747,134,144.14 | |
Development expenses | |||
Goodwill | 276,001,989.95 | 276,001,989.95 | |
Long-term deferred | 254,143.60 | 254,143.60 |
expenses
expenses | |||
Deferred tax assets | 825,064,057.57 | 825,064,057.57 | |
Other non-current assets | 204,398,450.18 | 204,398,450.18 | |
Total non-current assets | 15,648,777,116.95 | 15,648,777,116.95 | |
Total assets | 53,455,037,840.98 | 53,455,037,840.98 | |
Current liabilities: | |||
Short-term loans | |||
Borrowings from the central bank | |||
Loans from other banks | |||
Financial liabilities held for trading | |||
Derivative financial liabilities | |||
Notes payable | |||
Accounts payables | 1,330,649,116.82 | 1,330,649,116.82 | |
Advance from customer | 6,753,595,187.64 | -6,753,595,187.64 | |
Contract liabilities | 8,625,433,531.59 | 8,625,433,531.59 | |
Financial assets sold for repurchase | |||
Customer brokerage deposits | |||
Securities underwriting brokerage deposits | |||
Receivings from vicariously sold securities | |||
Employee benefits payable | 116,094,163.25 | 116,094,163.25 | |
Taxes payable | 1,815,288,006.47 | 1,815,288,006.47 | |
Other payables | 6,521,146,762.07 | 3,962,515,639.56 | -2,558,631,122.51 |
Including:Interests payable | |||
Dividends payable | |||
Handling charges and commissions payable | |||
Reinsurance accounts payable | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | 686,792,778.56 | 686,792,778.56 | |
Total current liabilities | 16,536,773,236.25 | 16,536,773,236.25 | |
Non-current liabilities: | |||
Insurance contract reserves | |||
Long-term loans | 72,723.00 | 72,723.00 | |
Bonds payable | |||
Including: Preference shares | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term payables | 197,623,728.85 | 197,623,728.85 | |
Long-term payroll payables | |||
Accrued liabilities | |||
Deferred income | 89,756,500.00 | 89,756,500.00 | |
Deferred tax liabilities | 139,259,083.16 | 139,259,083.16 | |
Other non-current liabilities | |||
Total non-current liabilities | 426,712,035.01 | 426,712,035.01 | |
Total liabilities | 16,963,485,271.26 | 16,963,485,271.26 | |
Shareholders' equity | |||
Share capital | 1,506,988,000.00 | 1,506,988,000.00 | |
Other equity instruments | |||
Including: preference shares |
Perpetual bonds
Perpetual bonds | |||
Capital reserves | 741,532,550.13 | 741,532,550.13 | |
Less: treasury stock | |||
Other comprehensive income | -3,608,771.16 | -3,608,771.16 | |
Special reserves | |||
Surplus reserves | 753,494,000.00 | 753,494,000.00 | |
General risk reserve | |||
Undistributed profits | 33,510,429,712.50 | 33,510,429,712.50 | |
Total equity attributable to owners of the parent company | 36,508,835,491.47 | 36,508,835,491.47 | |
Non-controlling interests | -17,282,921.75 | -17,282,921.75 | |
Total owners' equity | 36,491,552,569.72 | 36,491,552,569.72 | |
Total liabilities and owners' equity | 53,455,037,840.98 | 53,455,037,840.98 |
Adjustment statementThe Company shall, from 1 January 2020, implement the new revenue standardsaccording toNotification of Accounting Standard for Business Enterprises No.14-Revenue (Caikuai [2018] No.22) revised and published by Ministry of Finance in July2017.According to the requirements of the new revenue standards, the comparativefinancial statements shall not be retroactively adjusted.
Balance Sheet of Parent Company
Unit: CNY
Assets | Balance as at 31 December 2019 | Balance as at 1 January 2020 | Adjustment |
Current assets: | |||
Cash and cash equivalents | 3,741,676,596.22 | 3,741,676,596.22 | |
Financial assets held for trading | 6,991,814,305.98 | 6,991,814,305.98 | |
Derivative financial assets | |||
Notes receivables | 493,500.00 | 493,500.00 | |
Accounts receivables | 900,252,229.11 | 900,252,229.11 | |
Account receivables financing | |||
Prepayment | 110,564,280.51 | 110,564,280.51 | |
Other receivables | 8,154,899,373.55 | 8,154,899,373.55 | |
Including:Interests receivable | |||
Dividends receivable | |||
Inventories | 10,476,945,420.09 | 10,476,945,420.09 | |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | 303,163.88 | 303,163.88 | |
Total current assets | 30,376,948,869.34 | 30,376,948,869.34 | |
Non-current assets: | |||
Investment in debt instruments | |||
Investment in other debt instruments | |||
Long-term receivables | |||
Long-term equity investments | 7,964,291,378.23 | 7,964,291,378.23 | |
Investment in other equity instruments |
Other non-current financialassets
Other non-current financial assets | 1,467,783,926.91 | 1,467,783,926.91 | |
Investment property | |||
Fixed assets | 4,641,909,489.16 | 4,641,909,489.16 | |
Construction in progress | 183,652,813.42 | 183,652,813.42 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use asset | |||
Intangible assets | 1,230,216,202.93 | 1,230,216,202.93 | |
Development expenses | |||
Goodwill | |||
Long-term deferred expenses | |||
Deferred tax assets | 6,181,509.39 | 6,181,509.39 | |
Other non-current assets | 170,318,838.68 | 170,318,838.68 | |
Total Non-current Assets | 15,664,354,158.72 | 15,664,354,158.72 | |
Total Assets | 46,041,303,028.06 | 46,041,303,028.06 | |
Current liabilities: | |||
Short-term loans | |||
Financial liabilities held for trading | |||
Derivative financial liabilities | |||
Notes payable | |||
Accounts payables | 1,066,947,279.95 | 1,066,947,279.95 | |
Advance from customer | 16,238,064,053.40 | -16,238,064,053.40 | |
Contract liabilities | 14,372,628,991.77 | 14,372,628,991.77 | |
Employee benefits payable | |||
Taxes payable | 202,771,495.61 | 202,771,495.61 | |
Other payables | 180,236,563.85 | 180,236,563.85 | |
Including:Interests payable | |||
Dividends payable | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | 1,865,435,061.63 | 1,865,435,061.63 | |
Total current liabilities | 17,688,019,392.81 | 17,688,019,392.81 | |
Non-current liabilities: | |||
Long-term loans | 72,723.00 | 72,723.00 | |
Bonds payable | |||
Including:preference shares | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term payables | 144,680,616.65 | 144,680,616.65 | |
Long-term payroll payables | |||
Provisions | |||
Deferred income | |||
Deferred tax liabilities | 49,541,198.05 | 49,541,198.05 | |
Other non-current liabilities | |||
Total non-current liabilities | 194,294,537.70 | 194,294,537.70 | |
Total liabilities | 17,882,313,930.51 | 17,882,313,930.51 | |
Owners' equity (or shareholders' equity) | |||
Share capital | 1,506,988,000.00 | 1,506,988,000.00 | |
Other equity instruments | |||
Including: preference |
shares
shares | |||
Perpetual bonds | |||
Capital reserves | 1,341,628,480.93 | 1,341,628,480.93 | |
Less: treasury stock | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserves | 753,494,000.00 | 753,494,000.00 | |
Undistributed profits | 24,556,878,616.62 | 24,556,878,616.62 | |
Total owners' equity | 28,158,989,097.55 | 28,158,989,097.55 | |
Total liabilities and owners' equity | 46,041,303,028.06 | 46,041,303,028.06 |
Adjustment statementThe Company shall, from 1 January 2020, implement the new revenue standardsaccording to Notification of Accounting Standard for Business Enterprises No.14 -Revenue (Caikuai [2018] No.22) revised and published by Ministry of Finance in July2017. According to the requirements of the new revenue standards, the comparativefinancial statements shall not be retroactively adjusted.
(4)Since 2020, the first implementation of new revenue standards or new leasingstandards will be retroactivelyadjusted to the comparative financial statements? Applicable √ N/A
VI.Taxes
1. Major tax types and rates
Tax type | Taxation basis | Tax rate |
Value-added tax (VAT) | Output tax-deductible input tax | 13%、10%、6%、19% |
Consumption tax | Sales revenue or or composite assessable price | |
Urban maintenance and construction tax | Applicable turnover tax amount | 7%、5% |
Corporate income tax | Applicable income tax rate Taxable income | 25%、16.5%、0%、27% |
Disclosure statement if there are various taxpaying bodies with different corporateincome tax rates
Company name | Applicable tax rate |
JSSJ Industry (HK) Holdings Co., Ltd. | 16.50% |
ZYG E-Commerce HK Limited | 16.50% |
Yanghe Hong Kong DistilleryCo., Ltd. | 16.50% |
Hong Kong Zhaiugou International Trade Co.,Ltd. | 16.50% |
Yanghe Chile SPA | 27% |
YangHe International Investment Ltd, ZYG Ltd | 0 |
ZYG Technology Investment Ltd | 0 |
2. Other information
1. Ad valorem taxation: liquor consumption tax shall be calculatedand paid according to20% of the approved sales amount.The taxable liquor commissioned for processing shallbe taxed according to the sales price of similar liquor of the entrusted party, and if thereis no sales price of similar liquor, the taxable liquor shall be computed according to the
composition assessable price.Consumption tax on red wine (wine) is calculated at 10%of sales.
2. Quantity-based taxation: liquor consumption tax is calculated and paid according toCNY 0.50 per kg.
3. The corporate income tax is calculated and paid at 25% of the taxable income amount.The profits tax rate applicable to JSSJ Industry (HK) Holdings Co., Ltd.,Hong KongZhaiugou International Trade Co.,Ltd., ZYG E-Commerce HK Limited and Yanghe HongKong Distillery Co., Ltd. is 16.50%, and the income tax rate applicable to Yanghe ChileSPA is 27%.YangHe International Investment Ltd, ZYG Ltd and ZYG TechnologyInvestment Ltd are not required to pay any taxes to the government according to locallaws.
VII. Notes to the main items of the consolidated financialstatements (all currency unit is CNY, except otherstatements)
1. Cash and cash equivalents
Unit: CNY
Item
Item | Closing balance | Opening balance |
Cash | 4,434.27 | 4,067.27 |
Bank deposit | 7,201,133,719.50 | 4,282,803,604.61 |
Other cash and cash equivalents | 42,048,208.52 | 17,337,176.79 |
Total | 7,243,186,362.29 | 4,300,144,848.67 |
Including: total deposit outbound | 67,157,360.95 | 62,676,784.36 |
Other notesLiquor manufacturing enterprises should disclose in detail whether there is any special interestarrangement such as the establishment of capital co-management accounts with relevant parties
√ Applicable □ N/A
The Company shall comply with the disclosure requirements of the Shenzhen Stock Exchange IndustryInformation Disclosure Guidelines No. 14 - Listed Companies Engage in Food and Liquor ManufacturingRelated BusinessesThe Company does not have any special interest arrangement such as establishing fund co-management account with relevant parties.
2. Financial assets held for trading
Unit: CNY
Item | Closing balance | Opening balance |
Financial asset at fair value through profit and loss | 14,301,978,905.17 | 17,976,767,209.45 |
Including: | ||
Equity instrument | 2,012,500.00 | |
Debt instrument | 14,301,978,905.17 | 17,974,754,709.45 |
Including: | ||
Total | 14,301,978,905.17 | 17,976,767,209.45 |
3. Notes receivables
1)Classification of notes receivables
Unit: CNY
Item | Closing balance | Opening balance |
Bank acceptance bill
Bank acceptance bill | 613,496,333.71 | 659,266,780.81 |
Total | 613,496,333.71 | 659,266,780.81 |
Unit: CNY
Item
Item | Closing balance | Opening balance | ||||||||
Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
amount | proportion | amount | proportion | amount | proportion | amount | proportion | |||
Including: | ||||||||||
Provision for bad debt of notes receivablesby portfolio | 613,496,333.71 | 100.00% | 613,496,333.71 | 659,266,780.81 | 100.00% | 659,266,780.81 | ||||
Including: | ||||||||||
Bank acceptance bill portfolio | 613,496,333.71 | 100.00% | 613,496,333.71 | 659,266,780.81 | 100.00% | 659,266,780.81 | ||||
Total | 613,496,333.71 | 100.00% | 613,496,333.71 | 659,266,780.81 | 100.00% | 659,266,780.81 |
Provision for bad debt by individual: 0.00
Unit: CNY
Item | Closing balance | |||
Book balance | Provision for bad debt | Proportion | Reason |
Provision for bad debt by individual: 0.00
Unit: CNY
Item | Closing balance | |||
Book balance | Provision for bad debt | Proportion | Reason |
Provision for bad debt by individual: 0.00
Unit: CNY
Item | Closing balance | |||
Book balance | Provision for bad debt | Proportion | Reason |
Provision for bad debt by portfolio:
Unit: CNY
Item | Closing balance | ||
Book balance | Provision for bad debt | Proportion | |
Bank acceptance bill portfolio | 613,496,333.71 | 0.00 |
Notes to determine provision for bad debt by portfolio:
Provision for bad debt by portfolio:
Unit: CNY
Item
Item | Closing balance | ||
Book balance | Provision for bad debt | Proportion |
Notes to determine provision for bad debt by portfolio:
If provision for bad debt of notes receivable is calculated according to the general model of expected credit loss, please refer to the disclosure methodof other receivables to disclose the relevant information aboutprovision for bad debt:
□ Applicable √ Not applicable
2) Notes receivable that have been endorsed to other parties by the Company but have not expired at the end of year
Unit: CNY
Item | Derecognition at period end | Not derecognition at period end |
Bank acceptance bill | 397,528,853.18 | |
Total | 397,528,853.18 |
4. Accounts receivables
(1) Disclosed by categories
Unit: CNY
Category | Closing balance | Opening balance | ||||||||
Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
Including: | ||||||||||
Provision for bad debt by portfolio | 6,902,858.86 | 100.00% | 2,677,627.96 | 38.79% | 4,225,230.90 | 18,852,659.14 | 100.00% | 2,772,040.49 | 14.70% | 16,080,618.65 |
Including: | ||||||||||
Risk portfolio | 6,902,858.86 | 100.00% | 2,677,627.96 | 38.79% | 4,225,230.90 | 18,852,659.14 | 100.00% | 2,772,040.49 | 14.70% | 16,080,618.65 |
Other portfolio | ||||||||||
Total | 6,902,858.86 | 100.00% | 2,677,627.96 | 38.79% | 4,225,230.90 | 18,852,659.14 | 100.00% | 2,772,040.49 | 14.70% | 16,080,618.65 |
Provision for bad debt by individual:
Unit: CNY
Name of client
Name of client | Closing balance | |||
Book balance | Provision for bad debt | Proportion | Reason |
Provision for bad debts by portfolio: Risk portfolio
Unit: CNY
Overdue years | Closing balance | ||
Accounts receivables | Provision for bad debt | Proportion of provision | |
Overdue within 1 year | 3,767,292.61 | 113,018.78 | 3.00% |
Overdue 1-2 years | 88,718.59 | 8,871.86 | 10.00% |
Overdue 2-3 years | 31,993.58 | 6,398.72 | 20.00% |
Overdue more than 3 years | 3,014,854.08 | 2,549,338.60 | 84.56% |
Total | 6,902,858.86 | 2,677,627.96 | -- |
Notes to determine provision for bad debt by portfolio:
For accounts receivables divided into risk portfolio, the Company refers to the historicalcredit loss experience, and combines the current situation and the forecast of futureeconomic situation, and prepares a comparison table between overdue ages of accountsreceivables and expected credit loss rate of the whole duration to calculate the expectedcredit loss.
Provision for bad debt by portfolio:
Unit: CNY
Item | Closing balance | ||
Book Balance | Provision for bad debt | Proportion |
Notes to determine provision for bad debt by portfolio:
If provision for bad debt of notes receivable is calculated according to the general modelof expected credit loss, please refer to the disclosure method of other receivables todisclose the relevant information aboutprovision for bad debt:
□ Applicable √ Not applicable
Disclosed by aging
Unit: CNY
Aging | Book value |
Within 1 year (including 1 year) | 3,767,292.61 |
1-2 years | 88,718.59 |
2-3 years | 31,993.58 |
Over 3 years | 3,014,854.08 |
3-4 years | 891,788.77 |
4-5 years | 98,105.45 |
Over 5 years | 2,024,959.86 |
Total | 6,902,858.86 |
The Company shall comply with the disclosure requirements of Shenzhen StockExchange Industry Information Disclosure Guidelines No. 14 - Listed CompaniesEngaging in Food and Liquor Manufacturing Related Businesses.
(2) Provision for bad debt that is accrued, recovered or reversed during this periodProvision for bad debts during this period:
Unit: CNY
Category | Opening balance | Changes in the current period | Closing balance | |||
Provision | Recovered or reversed | Write off | Others |
Provision forbad debt ofaccountsreceivables
Provision for bad debt of accounts receivables | 2,772,040.49 | 94,412.53 | 2,677,627.96 | |||
Total | 2,772,040.49 | 94,412.53 | 2,677,627.96 |
Significant amount of reversal or recovery duringthis period
Unit: CNY
Company name | Amount recovered or reversed | Method |
(3)Top five entities with the largest balances of the accounts receivables
Unit: CNY
Company's name | Closing balance | Proportion in the total accounts receivables | Provision amount |
First | 973,744.36 | 14.11% | 29,212.33 |
Second | 600,066.00 | 8.69% | 18,001.98 |
Third | 600,000.00 | 8.69% | 600,000.00 |
Fourth | 454,356.93 | 6.58% | 454,356.93 |
Fifth | 434,565.07 | 6.30% | 13,036.95 |
Total | 3,062,732.36 | 44.37% |
5. Prepayment
(1)Analysis by aging
Unit: CNY
Aging | Closing balance | Opening balance | ||
Amount | Proportion | Amount | Proportion | |
Within 1 year | 7,941,357.88 | 84.85% | 198,626,119.93 | 99.26% |
1-2 years | 847,516.09 | 9.06% | 972,506.99 | 0.48% |
2-3 years | 272,564.91 | 2.91% | 413,485.27 | 0.21% |
Over 3 years | 297,407.60 | 3.18% | 103,213.00 | 0.05% |
Total | 9,358,846.48 | -- | 200,115,325.19 | -- |
Significant prepayment aging over 1 year without settlement on time :
No significant prepaymentaging over 1 year are recorded in the ending balance.
(2)Top five entities with the largest balances of prepayment
Company’s name | Closing balance | Proportion in the total prepayment (%) |
First | 1,952,540.69 | 20.86 |
Second | 1,231,817.00 | 13.16 |
Third | 616,680.27 | 6.59 |
Fourth | 688,310.00 | 7.36 |
Fifth | 485,555.44 | 5.19 |
Total | 4,974,903.40 | 53.16 |
6. Other receivables
Unit: CNY
Item | Closing balance | Opening balance |
Other receivables | 30,318,938.67 | 37,521,590.52 |
Total | 30,318,938.67 | 37,521,590.52 |
(1)Other receivables
a) Other receivables by nature
Unit: CNY
Nature of other receivables
Nature of other receivables | Closing balance | Opening balance |
Savings deposits (infringement dispute) | 65,747,048.93 | 65,747,048.93 |
Deposit | 16,298,680.14 | 15,338,991.78 |
Cooperation | 3,910,000.00 | 3,910,000.00 |
Business loans, petty cash and others | 19,800,887.50 | 28,136,955.41 |
Total | 105,756,616.57 | 113,132,996.12 |
b)Provision for bad debt
Unit: CNY
Bad debt | Phase 1 | Phase 2 | Phase 3 | Total |
Expected credit losses in the next 12 months | Expected credit loss for lifetime (No credit loss occurred) | Expected credit loss for lifetime (Credit loss occurred) | ||
Balance as at 1 January 2020 | 485,801.96 | 75,125,603.64 | 75,611,405.60 | |
Change of opening balance as at 1 January 2020 in current period | —— | —— | —— | —— |
Provision in 2020 | 66,429.11 | 66,429.11 | ||
Write-off in 2020 | 218,499.03 | 218,499.03 | ||
Other changes | -21,657.78 | -21,657.78 | ||
Balance as at 31 December 2020 | 245,645.15 | 75,192,032.75 | 75,437,677.90 |
Significant changes of loss provision in the book balance during this period.
□ Applicable √ Not applicable
Disclosure by aging
Unit: CNY
Aging | Book value |
Within 1 year(including 1 year) | 6,046,860.37 |
1-2 years | 587,785.71 |
2-3 years | 3,082,251.10 |
Over 3 years | 96,039,719.39 |
3-4 years | 3,646,132.27 |
4-5 years | 115,065.49 |
Over 5 years | 92,278,521.63 |
Total | 105,756,616.57 |
c)Provision for bad debt that is accrued, recovered or reversed during this periodProvision for bad debts during this period:
Unit: CNY
Category | Opening balance | Changes in current period | Closing balance | |||
Provision | Recovered or reversed | Write off | Other changes | |||
Other | 75,611,405.60 | 152,069.92 | -21,657.78 | 75,437,677.90 |
receivables baddebt provision
receivables bad debt provision | ||||||
Total | 75,611,405.60 | 152,069.92 | -21,657.78 | 75,437,677.90 |
Significant amount of reversal or recovery during this period:
Unit: CNY
Company Name | Recovery amount | Method |
d)Top five entities with the largest balances of other receivables
Unit: CNY
Company’sname | Category | Closing balance | Aging | Proportion in total receivables | Provisioning amount at period end |
Industrial Commercial Bank of China Ltd. Zhengzhou Jiefang Road branch. | Savings deposit (Infringement dispute) | 42,907,124.66 | Over 5 years | 40.57% | 19,872,137.40 |
Industrial Commercial Bank of China Ltd. Kaifeng Haode branch | Savings deposit (Infringement dispute) | 22,839,924.27 | Over 5 years | 21.60% | 22,839,924.27 |
Bankruptcy administrator of Jiangsu Juntai Properties Co.,Ltd., Suqian Guotai Department Store Co.,Ltd. | Deposit | 15,000,000.00 | Over 5 years | 14.18% | 15,000,000.00 |
Nanjing Peilong Sports Culture Co., Ltd. | Cooperation | 3,910,000.00 | Over 5 years | 3.70% | 3,910,000.00 |
Advance money for another | Advance money for another | 2,379,354.55 | 3-4 year | 2.25% | 2,379,354.55 |
Total | -- | 87,036,403.48 | -- | 82.30% | 64,001,416.22 |
7. Inventories
Whether the Company needs to comply with the disclosure requirement of real estateindustry.No
(1)Categories of Inventories
Unit: CNY
Category | Closing balance | Opening balance | ||||
Book balance | Provision for stock obsolescence | Book value | Book balance | Provision for stock obsolescence | Book value | |
Raw material | 326,289,956.43 | 9,565,908.51 | 316,724,047.92 | 394,844,178.61 | 6,710,130.33 | 388,134,048.28 |
Work in progress | 557,314,618.19 | 557,314,618.19 | 551,503,829.41 | 551,503,829.41 | ||
Stocks | 1,582,637,195.62 | 1,582,637,195.62 | 1,704,339,664.69 | 1,704,339,664.69 | ||
semi-finished goods | 12,396,018,284.57 | 12,396,018,284.57 | 11,789,267,153.89 | 11,789,267,153.89 | ||
Total | 14,862,260,054.81 | 9,565,908.51 | 14,852,694,146.30 | 14,439,954,826.60 | 6,710,130.33 | 14,433,244,696.27 |
The Company shall comply with the disclosure requirements of Shenzhen StockExchange Industry Information Disclosure Guidelines No. 14 - Listed CompaniesEngaging in Food and Liquor Manufacturing Related Businesses.
(2)Provision for stock obsolescence
Unit: CNY
Category
Category | Opening book balance | Increases in current period | Decreases in current period | Closing book balance | ||
Provision | Other | Recovery or reversal | Other | |||
Raw material | 6,710,130.33 | 6,196,876.85 | 3,341,098.67 | 9,565,908.51 | ||
Total | 6,710,130.33 | 6,196,876.85 | 3,341,098.67 | 9,565,908.51 |
Determination basis of net realizable values of inventoriesi. In normal operation process, for merchandise inventories held directly for sale,including stock commodities (finished goods) and materials for sale, their net realizablevalues are determined at their estimated selling prices minus their estimated sellingexpenses and relevant taxes and surcharges.ii. In normal operation process, for material inventories that need further processing, theirnet realizable values are determined at the estimated selling prices of finished goodsminus estimated costs to completion, estimated selling expenses and relevant taxes andsurcharges.iii. For inventories held to execute sales contract or service contract, their net realizablevalues are calculated on the basis of contract price. If the quantities of inventoriesspecified in the sales contracts are less than the quantities held by the Company, the netrealizable value of the excess portion of inventories shall be based on general sellingprices.iv. The materials held for production shall be measured at cost if the net realizable valueof the finished products is higher than the cost. If a decline in the value of materialsshows that the net realizable value of the finished products is lower than the cost, thematerials shall be measured at the net realizable value.
The recovery or reversal of stock obsolescence in the current period is the provision ofstock obsolescence for raw materials consumed in the current period.
8. Other current assets
Unit: CNY
Item
Item | Closing balance | Opening balance |
VAT to be deducted | 168,810,154.82 | 159,457,511.39 |
Consumption tax to be deducted | 6,483,646.87 | 7,020,885.09 |
Advance payment of income tax | 7,543,269.30 | 16,641,257.99 |
Total | 182,837,070.99 | 183,119,654.47 |
9. Long-term equity investments
Unit: CNY
Investee | Opening balance | Changes in current period | Closing balance | Closing balance of provision for impairment | |||||||
Increase | Decrease | Profit or loss recognized under equity method | Adjustments of other comprehensive income | Other changes in equity | Cash divided or profit declared | Provision for impairment | Other | ||||
Joint venture | |||||||||||
Diageo International Spirits Company Limited | 10,521,622.18 | -658,669.17 | -342,416.50 | 740,610.50 | 10,261,147.01 | ||||||
Subtotal | 10,521,622.18 | -658,669.17 | -342,416.50 | 740,610.50 | 10,261,147.01 | ||||||
Associated enterprise | |||||||||||
Jiangsu Su Wine Culture Transmission Co,Ltd. | 4,141,514.81 | 557,983.73 | -172,288.69 | 4,527,209.85 | |||||||
Nanjing Hesong Culture | 4,045,488.86 | -191,051.07 | 3,854,437.79 |
TechnologyCo.,Ltd.
Technology Co.,Ltd. | |||||||||||
Jiangsu Xinghe Investment Management Co.,Ltd. | 6,653,025.53 | 4,232,556.98 | 10,885,582.51 | ||||||||
Subtotal | 14,840,029.20 | 4,599,489.64 | -172,288.69 | 19,267,230.15 | |||||||
Total | 25,361,651.38 | 3,940,820.47 | -342,416.50 | 568,321.81 | 29,528,377.16 |
Other notes:
Other changes in the increase or decrease of long-term equity investment in the current period are the impact of adjusted long-term equity investment due to unrealized salesprofit of downstream transactionsand exchange rate changes.
10. Other non-current financial assets
Unit: CNY
Item | Closing balance | Opening balance |
Classified as financial assets at fair value through profit and loss | ||
Including: equity instrument investment | 4,519,967,688.33 | 3,353,861,013.63 |
Debt instrument investment | 1,846,990,537.48 | 1,696,990,657.53 |
Total | 6,366,958,225.81 | 5,050,851,671.16 |
11. Fixed assets
Unit: CNY
Item | Closing balance | Opening balance |
Fixed Assets | 6,882,953,634.34 | 7,256,557,503.85 |
Total | 6,882,953,634.34 | 7,256,557,503.85 |
(1)Details of fixed assets
Unit: CNY
Item | Buildings and constructions | Machinery equipment | Transportation equipment | Other equipment | Total |
Original cost of fixed assets |
1.Opening Balance
1.Opening Balance | 7,910,068,298.24 | 3,154,532,441.81 | 66,546,449.77 | 410,383,454.75 | 11,541,530,644.57 |
2.Increase in current period | 268,503,489.45 | 71,957,131.32 | 3,621,457.60 | 14,699,120.57 | 358,781,198.94 |
(1)External purchase | 22,078,140.26 | 71,957,131.32 | 3,621,457.60 | 14,699,120.57 | 112,355,849.75 |
(2)Transfer from construction in progress | 246,425,349.19 | 246,425,349.19 | |||
(3) Increase from business combination | |||||
3.Decrease in current period | 9,097,740.24 | 8,639,283.00 | 570,651.58 | 4,681,406.04 | 22,989,080.86 |
(1)Disposal or retirement | 9,097,740.24 | 8,639,283.00 | 570,651.58 | 4,681,406.04 | 22,989,080.86 |
(2)Decrease from business combination | |||||
4.Closing Balance | 8,169,474,047.45 | 3,217,850,290.13 | 69,597,255.79 | 420,401,169.28 | 11,877,322,762.65 |
Accumulated depreciation | |||||
1.Opening Balance | 2,277,433,792.29 | 1,654,577,077.62 | 50,326,402.03 | 302,635,868.78 | 4,284,973,140.72 |
2.Increase in current period | 383,086,384.69 | 280,314,176.23 | 5,850,072.07 | 58,300,214.84 | 727,550,847.83 |
(1)Provision | 383,086,384.69 | 280,314,176.23 | 5,850,072.07 | 58,300,214.84 | 727,550,847.83 |
3.Decrease in current period | 6,270,051.43 | 6,975,976.68 | 916,859.27 | 3,991,972.86 | 18,154,860.24 |
(1) Disposal or retirement | 6,270,051.43 | 6,975,976.68 | 916,859.27 | 3,991,972.86 | 18,154,860.24 |
4.Closing Balance | 2,654,250,125.55 | 1,927,915,277.17 | 55,259,614.83 | 356,944,110.76 | 4,994,369,128.31 |
Provision for fixed asset impairment | |||||
1.Opening Balance | |||||
2.Increase in current period | |||||
(1)Provision | |||||
3.Decrease in current period | |||||
(1)Disposal or retirement | |||||
4.Closing Balance | |||||
Book value | |||||
1.Closing book value | 5,515,223,921.90 | 1,289,935,012.96 | 14,337,640.96 | 63,457,058.52 | 6,882,953,634.34 |
2.Opening book value | 5,632,634,505.95 | 1,499,955,364.19 | 16,220,047.74 | 107,747,585.97 | 7,256,557,503.85 |
(2)Investment properties without certification of right
Unit: CNY
Item
Item | Book value | Reason for not having the certification of right |
Yanghe Blue-collar workers apartment | 136,256,140.84 | In process |
Yanghe 40,000-ton pottery jar warehouse | 175,790,462.04 | In process |
Yanghe workshop etc. | 111,059,271.04 | In process |
Total | 423,105,873.92 |
12. Construction in progress
Unit: CNY
Item | Closing balance | Opening balance |
Construction in progress | 223,468,482.24 | 263,153,505.12 |
Total | 223,468,482.24 | 263,153,505.12 |
(1)Details of the construction in progress
Unit: CNY
Item | Closing balance | Opening balance | ||||
Book Balance | Provision for impairment | Book value | Book Balance | Provision for impairment | Book value | |
R&D Center Building project | 330,097.09 | 330,097.09 | 330,097.09 | 330,097.09 | ||
Packaging logistics project of Shuanggou Distillery industry park | 3,457,949.57 | 3,457,949.57 | 3,145,312.97 | 3,145,312.97 | ||
Shuanggou new area brewing project | 13,132,641.22 | 13,132,641.22 | ||||
Shuanggou new area supporting project | 492,307.69 | 492,307.69 | 492,307.69 | 492,307.69 | ||
Shuanggou packaging production line | 10,610,699.88 | 10,610,699.88 | 10,610,699.88 | 10,610,699.88 | ||
Intelligent brewing (Mellowness 125 workshop) project | 18,611,596.70 | 18,611,596.70 | 26,209,114.57 | 26,209,114.57 | ||
Siyang base three-dimensional warehouse, packaging production line project | 1,090,909.09 | 1,090,909.09 | 14,449,560.37 | 14,449,560.37 | ||
Qu-making third workshop sesame qu expansion phase II project | 5,955,626.39 | 5,955,626.39 | ||||
40,000 tons of pottery jar warehouse project | 12,714,991.93 | 12,714,991.93 | 82,205,504.93 | 82,205,504.93 | ||
Nanjing operation center building project | 114,003,278.26 | 114,003,278.26 | 40,644,198.33 | 40,644,198.33 | ||
Other projects | 62,156,652.03 | 62,156,652.03 | 65,978,441.68 | 65,978,441.68 | ||
Total | 223,468,482.24 | 223,468,482.24 | 263,153,505.12 | 263,153,505.12 |
(2)Significant changes in construction in progress
Unit: CNY
Item
Item | Budget | Opening balance | Increase in current period | Transfer into fixed assets | Other decreases | Closing balance | Proportion of accumulative project input in budget (%) | Progress | Interest capitalization rate | Include:Capitalized interest for the period | Capitalization rate for the period | Source of funds |
R&D Center Building project | 260,510,000.00 | 330,097.09 | 330,097.09 | 197.87% | Late stage | Other | ||||||
Shuanggou new area bottle storage and packaging relocation project | 495,000,000.00 | 3,145,312.97 | 312,636.60 | 3,457,949.57 | 207.18% | Late stage | Other | |||||
Shuanggou new area brewing project | 528,180,000.00 | 13,132,641.22 | 13,132,641.22 | 162.55% | Late stage | Other | ||||||
Shuanggou new area supporting project | 70,000,000.00 | 492,307.69 | 492,307.69 | 173.17% | Late stage | Other | ||||||
Shuanggou packaging production line | 120,000,000.00 | 10,610,699.88 | 10,610,699.88 | 89.53% | Late stage | Other | ||||||
Intelligent brewing (Mellowness 125 workshop) project | 45,000,000.00 | 26,209,114.57 | 4,114,728.24 | 11,712,246.11 | 18,611,596.70 | 67.38% | Late stage | Other | ||||
Siyang base three-dimensional warehouse, packaging production line project | 41,000,000.00 | 14,449,560.37 | 5,739,254.40 | 19,097,905.68 | 1,090,909.09 | 64.93% | Late stage | Other | ||||
Qu-making third workshop sesame qu expansion phase II project | 9,800,000.00 | 5,955,626.39 | 1,763,374.94 | 7,719,001.33 | 78.76% | Late stage | Other | |||||
40,000 tons of pottery jarwarehouse project | 360,000,000.00 | 82,205,504.93 | 116,132,677.14 | 185,623,190.14 | 12,714,991.93 | 55.09% | Late stage | Other | ||||
Nanjing operation center building project | 800,000,000.00 | 40,644,198.33 | 73,359,079.93 | 114,003,278.26 | 14.25% | Early stage | Other | |||||
Total | 2,729,490, | 197,175, | 201,421, | 237,284,9 | 161,311,830 | -- | -- | -- |
000.00
000.00 | 063.44 | 751.25 | 84.48 | .21 |
13. Intangible assets
(1)Details of intangible assets
Unit: CNY
Item | Land use right | Patent right | No-patent right technology | Trademark right | Computer software | Total |
Original cost of intangible assets | ||||||
Opening balance | 1,951,504,148.14 | 399,851,465.43 | 118,448,570.28 | 2,469,804,183.85 | ||
Increase in current period | 5,814,263.84 | 15,750,107.50 | 21,564,371.34 | |||
Including: Acquired | 5,814,263.84 | 15,750,107.50 | 21,564,371.34 | |||
Internally developed | ||||||
Business combination | ||||||
Decrease in current period | ||||||
Including: Disposal | ||||||
Closing balance | 1,957,318,411.98 | 399,851,465.43 | 134,198,677.78 | 2,491,368,555.19 | ||
Accumulated amortization of intangible assets | ||||||
Opening balance | 287,051,471.16 | 387,109,803.02 | 48,508,765.53 | 722,670,039.71 | ||
Increase in current period | 40,313,330.51 | 1,890,025.46 | 12,968,466.41 | 55,171,822.38 | ||
Including: Provision | 40,313,330.51 | 1,890,025.46 | 12,968,466.41 | 55,171,822.38 | ||
Decrease in current period | ||||||
Including: Disposal | ||||||
Closing balance | 327,364,801.67 | 388,999,828.48 | 61,477,231.94 | 777,841,862.09 | ||
Provision for impairment | ||||||
Opening balance | ||||||
Increase in current period | ||||||
Including: Provision | ||||||
Decrease in current period |
Including: Disposal
Including: Disposal | ||||||
Closing balance | ||||||
Book value of intangible assets | ||||||
Closing book value | 1,629,953,610.31 | 10,851,636.95 | 72,721,445.84 | 1,713,526,693.10 | ||
Opening book value | 1,664,452,676.98 | 12,741,662.41 | 69,939,804.75 | 1,747,134,144.14 |
The proportion of intangible assets formed through internal research and development of the Company in the balance of intangible assets at the endof this period is 0.00%.
14. Goodwill
(1)Original cost of goodwill
Unit: CNY
Investee’s name or items resulting in goodwill | Opening balance | Increasein current period | Decrease incurrent period | Closing balance | ||
Business combination | Disposal | |||||
Jiangsu Shuanggou Distillery Stock Co.,Ltd. | 276,001,989.95 | 276,001,989.95 | ||||
Jiangsu Zhaiugou E-commerce Co.,Ltd | 6,940,018.79 | 6,940,018.79 | ||||
Jiangsu Zhaibianli E-commerce Co.,Ltd | 21,250,284.80 | 21,250,284.80 | ||||
Guizhou Guijiu Co.,Ltd. | 18,826,210.01 | 18,826,210.01 | ||||
ZYG TECHNOLOGY INVESTMENT LTD | 5,057,111.19 | 5,057,111.19 | ||||
Guizhou Welcome Drink Stock Co.,Ltd | 11,333,195.25 | 11,333,195.25 | ||||
Total | 339,408,809.99 | 339,408,809.99 |
(2)Provision for impairment of goodwill
Unit: CNY
Investee’s name or items resulting in goodwill | Opening balance | Increasein current period | Decrease incurrent period | Closing balance | ||
Provision | Disposal | |||||
Jiangsu Zhaiugou E-commerce Co.,Ltd | 6,940,018.79 | 6,940,018.79 | ||||
Jiangsu Zhaibianli E-commerce Co.,Ltd | 21,250,284.80 | 21,250,284.80 | ||||
Guizhou Guijiu Co.,Ltd. | 18,826,210.01 | 18,826,210.01 | ||||
ZYG TECHNOLOGY INVESTMENT LTD | 5,057,111.19 | 5,057,111.19 | ||||
Guizhou Welcome Drink Stock Co.,Ltd | 11,333,195.25 | 11,333,195.25 | ||||
Total | 63,406,820.04 | 63,406,820.04 |
Related information of asset groups or asset group portfolio containing goodwillGoodwill impairment test according to the present value of the expected future cash flowof the asset groups, group assets of recent three years based on the actual operationsituation and the future operation of the expectations, the estimated future cash flow ofthe asset group, and according to the pre-tax discount rate of 19.93% discount aftercalculating the recoverable amount of an asset group. After the test, there is no goodwillimpairment resulting from the acquisition of Jiangsu Shuanggou Distillery Stock Co., Ltd.
Statement of testing process of impairment of goodwill, key parameters (e.g. the forecastgrowth rate at present value of future cash flows; the growth rate in stable period; profitmargin; the discount rate; predictive period and etc.) and determination methods ofrecognizing goodwill impairment loss.
Effect of goodwill impairment testOther statements
15. Long-term prepaid expenses
Unit: CNY
Item
Item | Opening balance | Increase in the current period | Amortization for the current period | Other decreases | Closing balance |
Renovation costs of rented house | 254,143.60 | 127,071.84 | 127,071.76 | ||
Total | 254,143.60 | 127,071.84 | 127,071.76 |
16. Deferred tax assets/ deferred tax liabilities
(1)Deferred tax assets before offset
Unit: CNY
Item | Closing balance | Opening balance | ||
Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
Provision for asset impairment | 84,810,902.34 | 21,202,543.99 | 81,682,220.18 | 20,415,104.69 |
Unrealized profit from internal transaction | 35,903,134.07 | 8,975,783.52 | 41,036,182.10 | 10,259,045.53 |
Deductible losses | 787,092,991.66 | 196,773,247.91 | 456,081,306.89 | 114,020,326.72 |
The difference between book value of debt and tax base | 2,795,879,312.35 | 698,969,828.09 | 2,721,478,322.51 | 680,369,580.63 |
Total | 3,703,686,340.42 | 925,921,403.51 | 3,300,278,031.68 | 825,064,057.57 |
(2)Deferred tax liabilities before offset
Unit: CNY
Item | Closing balance | Opening balance | ||
Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
Valuation of appreciation of business combination assets not under common control | 44,387,767.84 | 11,096,941.96 | 47,048,144.60 | 11,762,036.15 |
Changesinfair value of financial assets held for trading | 1,781,604,966.78 | 445,242,472.42 | 516,851,327.69 | 127,497,047.01 |
Total | 1,825,992,734.62 | 456,339,414.38 | 563,899,472.29 | 139,259,083.16 |
(3)Deferred tax assets or liabilities presented as net value after offset
Unit: CNY
Item
Item | Offset amount of deferred tax assets and deferred tax liabilities | Closing balance ofdeferred tax assets or deferred tax liabilities after offset | Opening offset amount of deferred tax assets and deferred tax liabilities | Opening balance ofdeferred tax assets or deferred tax liabilities after offset |
Deferred tax assets | 925,921,403.51 | 825,064,057.57 | ||
Deferred tax liabilities | 456,339,414.38 | 139,259,083.16 |
(4)Details of unrecognized deferred tax assets
Unit: CNY
Item | Closing balance | Opening balance |
Deductible temporary differences | 88,933,255.36 | 97,994,641.66 |
Deductible losses | 105,350,440.90 | 155,606,254.87 |
Total | 194,283,696.26 | 253,600,896.53 |
(5)Deductible losses from unrecognized deferred tax assets will due on thefollowing years
Unit: CNY
Year | Closing balance | Opening balance | Note |
2021 | 50,282,695.77 | ||
2022 | 53,837,061.59 | 67,671,298.41 | |
2023 | 32,435,218.31 | 32,435,218.31 | |
2024 | 5,217,042.38 | 5,217,042.38 | |
2025 | 13,861,118.62 | ||
Total | 105,350,440.90 | 155,606,254.87 | -- |
17. Other non-current assets
Unit: CNY
Item | Book Balance | Provision for impairment | Book value | Book Balance | Provision for impairment | Book value |
Compensation for land demolition | 158,606,824.94 | 158,606,824.94 | 158,606,824.94 | 158,606,824.94 | ||
Prepayment of construction equipment and house purchase | 51,070,769.27 | 51,070,769.27 | 45,791,625.24 | 45,791,625.24 | ||
Total | 209,677,594.21 | 209,677,594.21 | 204,398,450.18 | 204,398,450.18 |
18. Accounts payables
(1)Presentation of accounts payables
Unit: CNY
Item | Closing balance | Opening balance |
Material purchase | 1,073,245,695.34 | 1,263,490,446.81 |
Construction and equipment payment | 78,625,440.95 | 67,158,670.01 |
Total | 1,151,871,136.29 | 1,330,649,116.82 |
(2) Significant accounts payables agingover one year
No significant accounts payables aging over 1 year are recorded in the ending balance.
19. Contract liabilities
Item
Item | Closing balance | Opening balance |
Advance from customers | 6,191,149,791.32 | 6,066,802,409.08 |
Discounts and allowances payable to the distributors that have not yet been settled | 2,610,197,100.00 | 2,558,631,122.51 |
Total | 8,801,346,891.32 | 8,625,433,531.59 |
20. Employee benefits payable
(1)Employee benefits payable shown as follows:
Unit: CNY
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance |
Short-term benefits | 115,901,955.94 | 2,133,071,155.75 | 2,052,923,831.69 | 196,049,280.00 |
Post-employment benefits-defined contribution plans | 192,207.31 | 101,619,932.92 | 101,619,932.92 | 192,207.31 |
Termination benefits | 178,106.65 | 178,106.65 | ||
Total | 116,094,163.25 | 2,234,869,195.32 | 2,154,721,871.26 | 196,241,487.31 |
(2)Short-term employee benefits payable shown as follows:
Unit: CNY
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance |
Wages, bonuses, allowances and grants | 115,829,721.23 | 1,894,760,493.20 | 1,814,620,438.45 | 195,969,775.98 |
Employees’ welfare | 90,855,372.73 | 90,855,372.73 | ||
Social insurance premiums | 14,860.08 | 59,562,248.28 | 59,562,248.27 | 14,860.09 |
Including: Medical Insurance | 7,972.00 | 48,484,584.65 | 48,484,584.65 | 7,972.00 |
Work-related injury insurance | 6,875.33 | 3,094,322.99 | 3,094,322.98 | 6,875.34 |
Maternity insurance premium | 12.75 | 7,983,340.64 | 7,983,340.64 | 12.75 |
Housing funds | 52,659.80 | 80,588,403.00 | 80,581,095.00 | 59,967.80 |
Labor union expenditures and employee education funds | 4,714.83 | 7,304,638.54 | 7,304,677.24 | 4,676.13 |
Total | 115,901,955.94 | 2,133,071,155.75 | 2,052,923,831.69 | 196,049,280.00 |
(3)Defined Contribution Plan shown as follows:
Unit: CNY
Item
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance |
Basic endowment insurance premium | 191,323.23 | 98,535,581.57 | 98,535,581.57 | 191,323.23 |
Unemployment insurance premium | 884.08 | 3,084,351.35 | 3,084,351.35 | 884.08 |
Total | 192,207.31 | 101,619,932.92 | 101,619,932.92 | 192,207.31 |
21. Taxes payable
Unit: CNY
Item | Closing balance | Opening balance |
Value-added tax | 150,194,783.11 | 27,126,012.81 |
Consumption tax | 533,945,998.98 | 184,097,543.52 |
Enterprise income tax | 1,333,112,088.00 | 1,548,461,975.77 |
Individual Income Tax | 20,265,903.93 | 11,273,828.79 |
Urban maintenance and construction tax | 45,918,790.94 | 11,574,124.18 |
Land use tax | 6,456,687.93 | 4,322,610.74 |
Property tax | 22,210,815.89 | 14,349,066.89 |
Education Surcharge and Local Education Surcharge | 37,359,708.11 | 11,016,464.11 |
Stamp tax | 1,005,142.70 | 731,524.41 |
Integrated funds | 2,545.99 | 2,954.09 |
Other tax | 2,333,690.85 | 2,331,901.16 |
Total | 2,152,806,156.43 | 1,815,288,006.47 |
22. Other payables
Unit: CNY
Item | Closing balance | Opening balance |
Other payables | 1,556,699,290.45 | 3,962,515,639.56 |
Total | 1,556,699,290.45 | 3,962,515,639.56 |
(1) Other payables
(a)Categories by nature
Unit: CNY
Item | Closing balance | Opening balance |
Dealer deposit | 279,298,081.55 | 2,668,012,523.41 |
Dealer risk pledged deposit | 681,336,068.47 | 718,922,266.50 |
Accrued expenses | 303,563,123.81 | 306,270,802.86 |
Quality guarantee deposit and performance deposit | 195,028,352.99 | 180,729,458.44 |
Other payables | 97,473,663.63 | 88,580,588.35 |
Total | 1,556,699,290.45 | 3,962,515,639.56 |
(b) Other important payables aging more than 1 year
Unit: CNY
Item | Closing balance | Reasons for being unpaid or written-off |
Dealer risk pledged deposit and dealer deposit | 741,568,207.73 | Dealer risk pledged deposit and dealer deposit not yet due |
Total | 741,568,207.73 | -- |
23. Other current liabilities
Item | Closing balance | Opening balance |
Output tax has not yet received | 798,216,651.49 | 686,792,778.56 |
Total
Total | 798,216,651.49 | 686,792,778.56 |
24. Long-term loans
(1)Long-term loans by category
Unit: CNY
Item | Closing balance | Opening balance |
Credit loans | 36,360.00 | 72,723.00 |
Total | 36,360.00 | 72,723.00 |
25. Long-term payables
Unit: CNY
Item | Closing balance | Opening balance |
Special accounts payables | 197,049,341.93 | 197,623,728.85 |
Total | 197,049,341.93 | 197,623,728.85 |
(1)Special accounts payables
Unit: CNY
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance | Reason |
Compensation for replacement of employee status | 197,623,728.85 | 574,386.92 | 197,049,341.93 | ||
Total | 197,623,728.85 | 574,386.92 | 197,049,341.93 | -- |
26. Deferred incomes
Unit: CNY
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance | Reason |
Government grants | 89,756,500.00 | 5,000,000.00 | 8,757,000.00 | 85,999,500.00 | Government grants |
Total | 89,756,500.00 | 5,000,000.00 | 8,757,000.00 | 85,999,500.00 | -- |
Projects involving government grants:
Unit: CNY
Liability item | Opening balance | Increase in current period | Non-operating income in current period | Other income in current period | Cost reduction in current period | Other changes | Closing balance | Relevant to asset or income |
Hubei Lihuacun liquor industry liquor brewing, filling project supporting facilities construction subsidies | 26,053,600.00 | 4,257,000.00 | 21,796,600.00 | Asset | ||||
Special fund for packaging logistics project in | 15,000,000.00 | 3,000,000.00 | 12,000,000.00 | Asset |
Shuanggounew area
Shuanggou new area | ||||||||
Special fund for Harbin Binzhou brewery construction project | 41,202,900.00 | 41,202,900.00 | Asset | |||||
Shuanggou sewage treatment project | 7,500,000.00 | 1,500,000.00 | 6,000,000.00 | Asset | ||||
The second batch of provincial-level industrial and information industry transformation and upgrading special funds in 2020 | 5,000,000.00 | 5,000,000.00 | Asset | |||||
Total | 89,756,500.00 | 5,000,000.00 | 8,757,000.00 | 85,999,500.00 |
27. Share capital
Unit: Share
Opening balance | Increases/decreases in the current period (+, -) | Closing balance | |||||
Issuance of new shares | Share donation | Conversion of reserves funds into shares | Others | Subtotal | |||
Total number of shares | 1,506,988,000.00 | 1,506,988,000.00 |
28. Capital reserves
Unit: CNY
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance |
Share premium | 741,502,550.13 | 741,502,550.13 | ||
Other capital reserves | 30,000.00 | 30,000.00 | ||
Total | 741,532,550.13 | 741,532,550.13 |
29. Treasury stock
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance |
Share repurchase | 1,002,128,680.79 | 1,002,128,680.79 | ||
Total | 1,002,128,680.79 | 1,002,128,680.79 |
Other notes, including the changes in the current period, the reasons for the changes
On 29 October 2019, the sixth session of the ninth meeting of the board of directors washeld. It reviewed and approved the plan about repurchasing part of the social publicshares, and agreed to use its own funds to repurchase shares through centralizedbidding. The total amount of repurchase is not less than CNY 1 billion (inclusive) and notmore than CNY 1.5 billion (inclusive). The repurchase price is not more than CNY 135.00per share (inclusive). The period of repurchases is within 12 months since therepurchase plan is reviewed and approved by the sixth session of the ninth meeting ofthe board of directors. The Company's 2019 annual equity distribution plan has beenimplemented on 24 June 2020. According to the Company's repurchase plan, the upperlimit of the price of repurchased shares has been adjusted from no more than RMB 135 /share (inclusive) to no more than RMB 132.01 / share (inclusive). This sharerepurchased is used to implement equity incentive or employee stock ownership plan forcore key employees of the Company. The Company has repurchased 9,661,310 sharesof the Company. The total amount of funds used is CNY 1,002,128,680.79. The highestpurchase price is CNY 131.99 per share, and the lowest is CNY 80.37 per share. Therepurchase amount of the Company has reached the lower limit of the total amount ofrepurchase funds in the repurchase plan and not exceeded the upper limit of the totalamount of repurchase funds, and the repurchase plan has been completed.Thecompany's equity incentive or employee stock ownership plan has not been implemented,and the Company's share capital structure has not changed.
30. Other comprehensive incomes
Unit: CNY
Item
Item | Opening balance | Current period | Closing balance | |||||
Amount in current period before income tax | Less: Previously recognized in other comprehensive income transferred to profit or loss | Less: previously recognized in other comprehensive income transferred to retained earnings | Less: income tax | Amount attribute to parent company after tax | Amount attribute to non-controlling shareholders after tax | |||
2.Other consolidate incomes that will be reclassified into profit and loss | -3,608,771.16 | -1,630,142.86 | -1,604,477.77 | -25,665.09 | -5,213,248.93 | |||
Including: other comprehensive income will be reclassified into profits or losses under the equity method | 178,619.29 | -342,416.50 | -342,416.50 | -163,797.21 | ||||
Difference from translation of financial statements in foreign currency | -3,787,390.45 | -1,287,726.36 | -1,262,061.27 | -25,665.09 | -5,049,451.72 | |||
Total other comprehensive income | -3,608,771.16 | -1,630,142.86 | -1,604,477.77 | -25,665.09 | -5,213,248.93 |
Other statements, including adjustments for valid portion of the gains and or losses from cash flow hedging transferring to initial recognition amount ofprojects hedged.
31. Surplus reserves
Unit: CNY
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance |
Statutory surplus reserves | 753,494,000.00 | 753,494,000.00 | ||
Total | 753,494,000.00 | 753,494,000.00 |
Statements for surplus reserves including increase or decrease changes and change reasons this period:
32. Undistributed profits
Unit: CNY
Item
Item | Current period | Previous period |
Undistributed profit before adjustment at the end of the last year | 33,510,429,712.50 | 30,784,308,899.94 |
Adjustment in the total undistributed profits at the beginning of year | 165,659,685.69 | |
Undistributed profit after adjustment at the beginning of year | 33,510,429,712.50 | 30,949,968,585.63 |
Plus: net profit attributable to owners of the parent company for the current period | 7,482,228,633.63 | 7,382,822,726.87 |
Ordinary share dividends payable | 4,502,746,983.00 | 4,822,361,600.00 |
Undistributed profits at the end of the period | 36,489,911,363.13 | 33,510,429,712.50 |
Statements for adjusting undistributed profits at the beginning of the period:
(1)Due to retrospective adjustment according to Accounting Standards for BusinessEnterprises and related new rules, undistributed profit at thebeginningincreases/decreases by CNY 0.00.
(2)Due to changes of accounting policies, undistributed profit at the beginningincreases/decreases by CNY 0.00.
(3)Due to correction of accounting errors, undistributed profit at the beginningincreases/decreases by CNY 0.00.
(4)Due to change of the consolidation scopeunder common control, undistributed profit atthe beginning of the period increases/decreases by CNY 0.00.
(5)Due to other influences, undistributed profit at the beginning totallyincreases/decreases by CNY 0.00.
33. Operating revenue and cost of sales
Unit: CNY
Item | Current period amount | Previous period amount | ||
Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
Primary business | 22,161,278,307.05 | 5,772,779,588.18 | 23,186,902,149.00 | 5,527,417,445.92 |
Other business | 965,198,578.02 | 853,582,663.06 | 972,899,845.68 | 825,824,752.35 |
Total | 23,126,476,885.07 | 6,626,362,251.24 | 24,159,801,994.68 | 6,353,242,198.27 |
whether the net profit is negative or not after deducting non-recurring profits and lossesby audit,
□ Yes √ No
Information relating to revenue
Unit: CNY
Contract type | Division 1 | Division 2 | Total |
Including: | |||
Including: |
Information relating to performance obligationsN/AInformation relating to the transaction price apportioned to the remaining performanceobligations:
At the end of this report, the amount of revenue corresponding to the performanceobligations with the contracts signed but not performed or not performed is CNY6,191,149,791.32, of which CNY 6,191,149,791.32 is expected to be recognized in 2021,and CNY 0.00 is expected to be recognized in 2022Other notes
34. Taxes and surcharges
Unit: CNY
Item
Item | Current period amount | Previous period amount |
Consumption tax | 2,847,452,319.78 | 2,605,319,409.77 |
Urban maintenance and construction tax | 241,392,653.40 | 254,046,554.00 |
Educational surcharge | 239,859,725.86 | 252,226,373.49 |
Property tax | 60,808,511.65 | 61,403,035.90 |
Land use tax | 18,164,433.97 | 17,976,049.12 |
Stamp tax | 7,942,227.94 | 8,809,094.29 |
Increment tax on land value | 1,567,679.81 | |
Environmental protection tax | 11,898.43 | 126,776.37 |
Others | 13,998.00 | 4,853.34 |
Total | 3,415,645,769.03 | 3,201,479,826.09 |
35. Selling and distribution expenses
Unit: CNY
Item | Current period amount | Previous period amount |
Advertising and promotion expense | 1,411,090,022.81 | 1,566,903,873.47 |
Payroll | 646,271,019.11 | 502,836,431.55 |
Cargo charge | 5,184,987.92 | 10,327,005.41 |
Labor expense | 117,975,847.08 | 156,239,051.28 |
Travel expense | 353,434,744.65 | 365,735,100.77 |
Business entertainment expense | 1,628,111.11 | 3,809,795.16 |
Other expense | 68,219,425.10 | 85,859,912.95 |
Total | 2,603,804,157.78 | 2,691,711,170.59 |
36. General and administrative expenses
Unit: CNY
Item | Current period amount | Previous period amount |
Payroll | 665,991,755.03 | 727,031,403.39 |
Travel expense | 34,612,481.35 | 60,829,942.03 |
Office allowance | 6,667,982.75 | 7,528,872.00 |
Wate, electric and steam expense | 56,946,078.23 | 64,916,608.02 |
Business entertainment expense | 18,533,811.47 | 18,999,148.74 |
Depreciation cost | 463,503,047.71 | 489,966,400.69 |
Rental expense | 7,926,700.20 | 2,562,113.84 |
Repair charge | 40,899,196.47 | 54,009,927.49 |
Amortization of intangible assets | 55,171,822.38 | 53,008,955.54 |
Vehicle use expense | 17,742,719.25 | 20,175,918.19 |
Shipping and handling cost | 43,948,370.23 | 41,141,371.90 |
Other expense | 317,136,236.86 | 316,321,065.17 |
Total | 1,729,080,201.93 | 1,856,491,727.00 |
37. Research & Development expenses
Unit: CNY
Item | Current period amount | Previous period amount |
Material expenses | 144,095,917.84 | 85,700,940.30 |
Payroll | 77,975,559.20 | 54,476,101.25 |
Other expense | 38,022,813.99 | 19,788,552.33 |
Total | 260,094,291.03 | 159,965,593.88 |
38. Financial expenses
Unit: CNY
Item
Item | Current period amount | Previous period amount |
Interest expense | 1,964.00 | 2,618.00 |
Bill discount expense | 11,719,069.54 | 633,304.85 |
Less: Interest income | 104,495,154.37 | 77,589,503.94 |
Plus: Losses from currency exchange (Less: income) | 3,670,115.95 | -3,270,386.19 |
Plus: Bank charges | 1,869,240.49 | 1,797,415.87 |
Total | -87,234,764.39 | -78,426,551.41 |
39. Other income
Unit: CNY
Sources of other income | Current period | Previous period |
Government grants received | 98,151,595.19 | 83,307,366.37 |
Withholding personal tax commission | 818,031.70 | 1,670,388.78 |
Total | 98,969,626.89 | 84,977,755.15 |
40. Investment income
Unit: CNY
Item | Current period amount | Previous period amount |
Investment income from long-term equity investments under the equity method | 3,940,820.47 | -4,447,288.34 |
Investment income from disposing long-term equity investments | 21,516.26 | -43,877.59 |
Investment income from financial assets held for trading during the holding period | 113,585,439.53 | 40,267,966.45 |
Investment income from disposal of financial assets held for trading | 1,089,135,586.23 | 814,777,407.10 |
Total | 1,206,683,362.49 | 850,554,207.62 |
41. Gains/losses of changes in fair value
Unit: CNY
Gains/losses of changes in fair value | Current period amount | Previous period amount |
Financial assets held for trading | 1,267,682,598.52 | 158,679,505.33 |
Total | 1,267,682,598.52 | 158,679,505.33 |
42. Losses from credit impairment
Unit: CNY
Item | Current period amount | Previous period amount |
Bad debt losses of other receivables | 152,069.92 | -18,373,057.36 |
Bad debt losses of accounts receivables | 94,412.53 | -583,288.90 |
Total | 246,482.45 | -18,956,346.26 |
43. Losses from asset impairment
Unit: CNY
Item | Current period amount | Previous period amount |
Losses from provision for stock obsolescence and contract performance cost | -6,196,876.85 | -2,248,496.85 |
Total | -6,196,876.85 | -2,248,496.85 |
44. Gains from disposal of assets
Unit: CNY
Gains from disposal of assets
Gains from disposal of assets | Current period amount | Previous period amount |
Gains from disposal of fixed assets | 45,438.89 | 19,983,101.67 |
45. Non-operating income
Unit: CNY
Item | Current period amount | Previous period amount | Amount included in non-recurring profit and loss in current period |
Donations acceptance | 9,120,063.00 | 9,120,063.00 | |
Government grants | 24,000.00 | 2,298,016.82 | 24,000.00 |
Liquidated damages income | 4,475,586.24 | 11,254,294.46 | 4,475,586.24 |
Compensation payment | 8,475,059.72 | 7,819,571.36 | 8,475,059.72 |
Account payables that are unable to pay | 64,118.24 | 185,947.97 | 64,118.24 |
Others | 2,881,043.09 | 688,123.76 | 2,881,043.09 |
Total | 25,039,870.29 | 22,245,954.37 | 25,039,870.29 |
Government grants included in current profits and losses:
Unit: CNY
Item | Body | Reason | Type | Whether the grants affects current year profit and loss | Whether it is special grant | Current period amount | Previous period amount | Related to assets/related to earnings |
46. Non-operating expenses
Unit: CNY
Item | Current period amount | Previous period amount | Amount included in non-recurring profit and loss in current period |
Donation expenses | 35,400,000.00 | 5,546,180.00 | 35,400,000.00 |
Losses from retirement of fixed asset | 4,802,593.81 | 6,141,958.08 | 4,802,593.81 |
Integrated fund | 77,328.11 | 79,543.09 | |
Reparations | 422,169.33 | 1,442,510.50 | 422,169.33 |
Others | 623,399.13 | 114,100.03 | 623,399.13 |
Total | 41,325,490.38 | 13,324,291.70 | 41,248,162.27 |
47. Income tax expense
(1)Statement of income tax expense
Unit: CNY
Item | Current period amount | Previous period amount |
Current period income tax | 2,178,072,592.80 | 2,472,964,546.78 |
Deferred income tax | 216,222,985.28 | -88,251,204.98 |
Total | 2,394,295,578.08 | 2,384,713,341.80 |
(2)Adjustment for accounting profit and income tax expense
Unit: CNY
Item | Current period amount |
Total profit | 9,878,901,892.00 |
Income tax expenses determined by statutory/applicable tax rate | 2,469,725,473.00 |
Impact from subsidiaries’ different tax rates | -340,473.91 |
Adjust for impact from income tax expense in previous period | -16,387,934.87 |
Impact from non-taxable income | -5,537,829.51 |
Non-deductible costs, expenses and losses
Non-deductible costs, expenses and losses | 4,703,997.41 |
Deductible from deferred tax assets in previous period | -16,029,233.15 |
Temporary differences due to unrecognized deferred tax asset during current period | 4,002,241.61 |
Add the effect of the deduction | -45,840,662.50 |
Income tax expense | 2,394,295,578.08 |
48. Net other comprehensive income
Please refer to Note VII-30. for details.
49. Consolidated cash flow items
(1)Cash received from other operation activities
Unit: CNY
Item | Current period amount | Previous period amount |
Risk deposit | 60,255,818.13 | 59,275,520.22 |
Dealer deposit | 56,575,865.80 | 2,602,491.66 |
Interest income | 104,495,154.37 | 77,589,503.94 |
Liquidated damages income | 4,475,586.24 | 11,254,294.46 |
Government grants | 94,418,595.19 | 76,848,383.19 |
Commission for withholding tax | 818,031.70 | 1,670,388.78 |
Others | 48,750,584.17 | 31,109,582.42 |
Total | 369,789,635.60 | 260,350,164.67 |
Statements for cash received from other operation activities:
(2)Cash paid for other operating activities
Unit: CNY
Item | Current period amount | Previous period amount |
Transportation fee | 45,592,659.35 | 51,468,377.31 |
Advertising promotion expense | 1,216,976,623.15 | 1,751,245,676.57 |
Rental expense | 11,606,602.30 | 10,604,573.95 |
Repair charge | 40,913,095.81 | 54,113,100.25 |
Travel expense | 408,411,257.95 | 450,385,225.31 |
Entertainment expense | 20,161,922.58 | 22,808,943.90 |
Insurance expense | 4,473,210.69 | 5,386,711.21 |
Labor expense | 149,569,041.84 | 183,149,910.74 |
Others | 389,030,101.57 | 435,334,271.31 |
Total | 2,286,734,515.24 | 2,964,496,790.55 |
Statements for cash paid for other operating activities:
(3)Cash paid for other financing activities
Unit: CNY
Item | Current period amount | Previous period amount |
A cash payment by minority shareholder | 750,000.00 | |
Share repurchase | 1,002,128,680.79 | |
Total | 1,002,128,680.79 | 750,000.00 |
Statements for cash paid for other financing activities:
50. Supplementary information to consolidated statement of cash flow
(1)Supplementary information to consolidated statement of cash flow
Unit: CNY
Item | Current period amount | Previous period amount |
Reconciliation of net profit to cash flow from operating activities | -- | -- |
Net profit
Net profit | 7,484,606,313.92 | 7,386,090,915.21 |
Add: Provision for asset impairment | 5,950,394.40 | 21,204,843.11 |
Depreciation of fixed asset, oil &gas assets and productive biological assets | 727,550,847.83 | 722,009,265.90 |
Depreciation of right-of-use asset | ||
Amortization of intangible assets | 55,171,822.38 | 53,058,955.54 |
Amortization of long-term deferred expenses | 127,071.84 | 1,034,707.84 |
Losses from disposal of fixed assets, intangible assets and other long-term Assets | -45,438.89 | -19,983,101.67 |
Losses on retirement of fixed assets | 4,669,390.54 | 6,141,958.08 |
Losses from changes in fair value | -1,267,682,598.52 | -158,679,505.33 |
Financial expense | 3,672,079.95 | -3,267,768.19 |
Losses on investments | -1,206,683,362.49 | -850,554,207.62 |
Decrease in deferred tax asset | -100,857,345.94 | -111,976,025.37 |
Increase in deferred tax liabilities | 317,080,331.22 | 23,677,944.98 |
Decrease in inventory | -422,305,228.21 | -537,439,892.94 |
Decrease in operation receivables | 255,853,105.64 | -612,187,011.25 |
Increase in operation payables | -1,878,449,751.14 | 878,760,793.12 |
Other | 133,203.27 | |
Net cash flow from operating activities | 3,978,790,835.80 | 6,797,891,871.41 |
Significant investing and financing activities not Involving cash flow: | -- | -- |
Net change in cash &cash equivalents | -- | -- |
Closing balance of cash | 7,243,186,362.29 | 4,300,144,848.67 |
Less:opening balance of cash equivalents | 4,300,144,848.67 | 3,615,348,307.97 |
Net change in cash and cash equivalents | 2,943,041,513.62 | 684,796,540.70 |
(2)Composition of cash and cash equivalents
Unit: CNY
Item | Closing balance | Opening balance |
Cash | 7,243,186,362.29 | 4,300,144,848.67 |
Including:cash on hand | 4,434.27 | 4,067.27 |
Unrestricted bank deposit | 7,201,133,719.50 | 4,282,803,604.61 |
Other unrestricted cash & cash equivalents | 42,048,208.52 | 17,337,176.79 |
Closing balance of cash and cash Equivalents | 7,243,186,362.29 | 4,300,144,848.67 |
51. Foreign currency transactions
(1)Foreign currency balance
Unit: CNY
Item | Closing balance in foreign currency | Exchange rate | Closing balance in CNY |
Cash and cash equivalents | -- | -- | |
Including:USD | 1,470,471.60 | 6.52490 | 9,594,680.17 |
EUR | |||
HKD | 46,702.46 | 0.84164 | 39,306.66 |
CLP | 60,178,014.00 | 0.009181 | 552,494.35 |
Other receivables
Other receivables | -- | -- | |
Including:HKD | 125,679.16 | 0.84164 | 105,776.61 |
Accounts receivables | |||
Including:USD | |||
EUR | |||
HKD | |||
Accounts payables | |||
Including:USD | 499,163.86 | 6.5249 | 3,256,994.27 |
CLP | 35,950.00 | 0.009181 | 330.06 |
Other payables | |||
Including:HKD | 1,542,853.06 | 0.84164 | 1,298,526.85 |
CLP | 14,000.00 | 0.009181 | 128.53 |
Long-term loans | -- | -- | |
Including:USD | |||
EUR | |||
HKD |
(2) Description of the overseas business entity, including the important foreignbusiness entity, which shall disclose its main foreign business place, bookkeepingstandard currency and selection basis, and shall also disclose the reason for thechange of the bookkeeping standard currency.
√ Applicable ? N/A
Foreign business entities | Operation site | Functional currency | Choosing reason |
JSSJ Industry (HK) Holdings Co., Limited | Hong Kong, China | HKD | Currency in the main economic environment of business operations |
Hong Kong Zhaiugo International Trade Co.,Ltd. | Hong Kong, China | HKD | Currency in the main economic environment of business operations |
ZYG E-Commerce HK Limited | Hong Kong, China | HKD | Currency in the main economic environment of business operations |
ZYG LTD | Cayman Islands | USD | Currency in the main economic environment of business operations |
YangHe International Investment Ltd | British Virgin Islands | USD | Currency in the main economic environment of business operations |
ZYG TechnologyInvestment Ltd | British Virgin Islands | USD | Currency in the main economic environment of business operations |
YangheChile SPA | Santiago, Chile | CLP | Currency in the main economic environment of business operations |
Yanghe Hong Kong Distillery Co., Ltd. | Hong Kong, China | HKD | Currency in the main economic environment of business operations |
52. Government grants
(1)Details of government grants
Unit: CNY
Item | Amount | Presentation | Amount included in profit or loss |
Local industry support fund subsidy | 46,253,370.32 | Other income | 46,253,370.32 |
Steady post subsidy | 8,112,604.33 | Other income | 8,112,604.33 |
The first batch of subsidy funds for enterprise | 5,413,141.00 | Other income | 5,413,141.00 |
transformation and upgrading in 2020
transformation and upgrading in 2020 | |||
Financial return of small-scale taxpayers in Nanjing | 5,081,341.70 | Other income | 5,081,341.70 |
Subsidy of supporting stable employment by working instead of training | 4,431,885.00 | Other income | 4,431,885.00 |
Pollution dischargesubsidy | 3,000,000.00 | Other income | 3,000,000.00 |
The second batch of provincial special funds for industrial and information industry transformation and upgrading in 2019 | 2,300,000.00 | Other income | 2,300,000.00 |
Tax incentives | 2,300,000.00 | Other income | 2,300,000.00 |
2019 Suqian City high-skilled personnel shortage type occupation (job) training subsidy | 1,223,000.00 | Other income | 1,223,000.00 |
VAT exemption | 1,106,351.92 | Other income | 1,106,351.92 |
The first batch of special funds for the introduction of urgently needed talents for the development of Northern Jiangsu in 2019 | 1,086,000.00 | Other income | 1,086,000.00 |
900,000.00 | Other income | 900,000.00 | |
2019 municipal development guiding fund (industrial development) project | 880,000.00 | Other income | 880,000.00 |
2019 provincial business development special block fund | 528,300.00 | Other income | 528,300.00 |
“Yincai Yongcai” effective units recommendation awards | 500,000.00 | Other income | 500,000.00 |
Company brand image promotion subsidy | 500,000.00 | Other income | 500,000.00 |
Jiangsu service-oriented manufacturing demonstration enterprise award funds in 2019 | 500,000.00 | Other income | 500,000.00 |
2020 annual enterprise research and development incentive funds | 500,000.00 | Other income | 500,000.00 |
The third batch of provincial professional and technical personnel continuing education bases funds | 500,000.00 | Other income | 500,000.00 |
Provincial intellectual property award and subsidy funds in 2020 | 400,000.00 | Other income | 400,000.00 |
2018 Suqian high-level talents salary award funds | 386,400.00 | Other income | 386,400.00 |
Subsidy of working instead of training | 373,725.00 | Other income | 373,725.00 |
2020 annual provincial research and development institution construction and performance award funds | 300,000.00 | Other income | 300,000.00 |
Tourism toilet project construction subsidy funds | 204,000.00 | Other income | 204,000.00 |
Fire-fighting subsidy | 200,000.00 | Other income | 200,000.00 |
Economic contribution reward | 182,640.00 | Other income | 182,640.00 |
Government bailout funds | 150,000.00 | Other income | 150,000.00 |
Jiangsu provincial tourism development special funds in 2018 | 148,000.00 | Other income | 148,000.00 |
2019 municipal intellectual property award and subsidy funds | 100,000.00 | Other income | 100,000.00 |
Reward funds for Suqian's top 50 industrial enterprises in 2019 | 100,000.00 | Other income | 100,000.00 |
2020 provincial high-skilled talents and key construction project subsidy funds | 100,000.00 | Other income | 100,000.00 |
Others | 1,657,835.92 | Other income / Non-operating income | 1,657,835.92 |
Transfer of current deferred earnings | 8,757,000.00 | Other income | 8,757,000.00 |
Total
Total | 98,175,595.19 | 98,175,595.19 |
VIII. Changes in consolidated scope
1. Others
Explain the change of merger scope caused by other reasons (such as new subsidiary,liquidation subsidiary, etc.) and the relevant situation:
Establishment of subsidiariesSu Wine Group Co.,Ltd. ,the Company’s holding subsidiary,invested CNY 2 million toestablishJiangsu Yanghe Painting and Calligraphy Academy. On 6 July 2020, theRegistration Certificate of Private Non-Enterprise Unit (Legal Person) issued by the CivilAffairs Department of Jiangsu Province was obtained. It was included in the consolidatedfinancial statements from July 2020.Cancellation of subsidiaries
(1) Huaian Huaqu Wine Development Co.,Ltd., Jiangsu Huaqu Wine Group NanjingCo.,Ltd., Taizhou Huaqu Wine Development Co.,Ltd.,Guizhou Guijiu Package Co.,Ltd.,the holding subsidiaries, were liquidated and terminated onJanuary 2020.FromFebruary2020, theyare no longer included in the consolidated scope of the consolidated financialstatements.
(2) Jiangsu Huaqu Wine Group Suzhou Co., Ltd., Jiangsu Huaqu Wine Group YanchengCo., Ltd., the holding subsidiaries, were liquidated and terminatedonMarch 2020.FromApril 2020, theyare no longer included in the consolidated scope of the consolidatedfinancial statements.
(3) Jiangsu Huaqu Wine Group Nantong Co., Ltd., Jiangsu Huaqu Wine Group Wuxi Co.,Ltd., the holding subsidiaries, were liquidated and terminated on April 2020. From May2020, they are no longer included in the consolidated scope of the consolidated financialstatements.
IX. Interests in other entities
1. Interests in subsidiaries
(1) Group composition:
Name of subsidiaries | Major business location | Place of registration | Nature of business | Shareholding | Acquisition method | |
Direct | Indirect | |||||
Nanjing Yanghe Blue Classic Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Commerce | 100.00% | Establishment | |
Beijing Yanghe Commerce and Trade Co.,Ltd. | Fengtai,Beijing | Fengtai,Beijing | Commerce | 100.00% | Establishment | |
Jiangsu Huaqu Wine Group Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Commerce | 97.00% | Establishment | |
Suqian Tianhai Commerce and Trade Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
HuaianHuaqu Wine Development Co.,Ltd. | Huaian, Jiangsu province | Huaian, Jiangsu province | Commerce | 100.00% | Establishment |
Suqian YangheGuibinguanCo.,Ltd.
Suqian Yanghe Guibinguan Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Hotel industry | 100.00% | Establishment | |
Jiangsu Huaqu Wine Group Nanjing Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Commerce | 100.00% | Establishment | |
Su Wine Group Trade Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 83.63% | 16.37% | Establishment |
Wuxi Huaqu Wine Development Co.,Ltd. | Wuxi, Jiangsu province | Wuxi, Jiangsu province | Commerce | 100.00% | Establishment | |
Taizhou Huaqu Wine Development Co.,Ltd. | Taizhou, Jiangsu province | Taizhou, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Huaqu Wine Group Nantong Co.,Ltd. | Nantong, Jiangsu province | Nantong, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Huaqu Wine Group Suzhou Co.,Ltd. | Suzhou, Jiangsu province | Suzhou, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Huaqu Wine Group Yancheng Co.,Ltd. | Yancheng, Jiangsu province | Yancheng, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Yanghe Liquor Operation Mangement Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Shuanggou Liquor OperationCo.,Ltd. | Sihong, Jiangsu province | Sihong, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Dongdi Union International Trade Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Dongdixinghui International Trade Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
Suqian Blue Dream Trade Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
Siyang Lantu Liquor OperationCo.,Ltd. | Siyang, Jiangsu province | Siyang, Jiangsu province | Commerce | 100.00% | Establishment | |
JSSJ Industry (HK) Holdings Co., Limited | Hong Kong, China | Hong Kong, China | CORP | 100.00% | Establishment | |
Hubei Lihuacun Trade Co.,Ltd. | Shiyan, Hubei province | Yunxian, Hubei province | Commerce | 100.00% | Establishment | |
Jiangsu Shuanggou Distillery Stock Co., Ltd. | Sihong, Jiangsu province | Sihong, Jiangsu province | Liquor manufacture and sales | 99.99% | 0.01% | Business combinations involving enterprises not under common control |
Sihong Shuanggou Antai Waste Recycling Co.,Ltd. | Sihong, Jiangsu province | Sihong, Jiangsu province | Waste material recycle | 100.00% | Business combinations involving enterprises not under common control | |
Hubei Lihuacun Liquor Industry Co.,Ltd. | Shiyan, Hubei province | Yunxian, Hubei province | Process liquor, wine and fruit wine | 100.00% | Business combinations involving enterprises not under common control | |
Ningxiang | Ningxiang, | Ningxiang, Hunan | Manufacture | 100.00% | Business |
Miluochun LiquorIndustry Co.,Ltd.
Miluochun Liquor Industry Co.,Ltd. | Hunan province | province | and sale of liquor and compound wine | combinations involving enterprises not under common control | ||
Harbin Binzhou Brewery Co.,Ltd. | Binxian, Heilongjiang province | Binxian, Heilongjiang province | Liquor-making | 100.00% | Business combinations involving enterprises not under common control | |
Su Wine Group Jiangsu Wealth Management Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Assets/investment management, information consultation | 100.00% | Establishment | |
Ningxiang Miluochun Trade Co.,Ltd. | Ningxiang, Hunan province | Ningxiang, Hunan province | Commerce | 100.00% | Establishment | |
Jinagsu Kelite Biology Technology Research Institute Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Biological engineering research, enzyme preparation research and technology transfer | 100.00% | Establishment | |
Suqian Sky Blue Trade Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
Shiyan Yunyang Lihuacun Package Service Co.,Ltd. | Shiyan, Hubei province | Shiyan, Hubei province | Liquor, compound wine, health wine packaging service | 100.00% | Establishment | |
Jiangsu Lion and Sheep Network Technology Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Network technology development, technical consultation, technical services; Software development | 100.00% | Establishment | |
Jiangsu Zhaiugou E-commerce Co.,Ltd | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Commerce | 100.00% | Business combinations involving enterprises not under common control | |
NanjingTongmeng City Logistics Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Freight Transport, Warehouse service | 99.99% | Business combinations involving enterprises not under common control | |
Nanjing Jinling Tongmeng City Logistics Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Huaian Tongmeng City Logistics Co.,Ltd. | Huaian, Jiangsu province | Huaian, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Changzhou Jiezzhong | Changzhou, Jiangsu | Changzhou, Jiangsu province | Freight Transport, | 51.00% | Business combinations |
Tongmeng CityLogistics Co.,Ltd.
Tongmeng City Logistics Co.,Ltd. | province | Warehouse service | involving enterprises not under common control | |||
Nantong Tongmeng City Logistics Co.,Ltd. | Nantong, Jiangsu province | Nantong, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Suzhou Tongmeng City Logistics Co.,Ltd. | Suzhou, Jiangsu province | Suzhou, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Taizhou Tongmeng City Logistics Co.,Ltd. | Taizhou, Jiangsu province | Taizhou, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Wuxi Tongmeng City Logistics Co.,Ltd. | Wuxi, Jiangsu province | Wuxi, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Yancheng Tongmeng City Logistics Co.,Ltd. | Yancheng, Jiangsu province | Yancheng, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Zhenjiang Tongmeng City Logistics Co.,Ltd. | Zhenjiang, Jiangsu province | Zhenjiang, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Yangzhou Tongmeng City Logistics Co.,Ltd. | Yangzhou, Jiangsu province | Yangzhou, Jiangsu province | Freight Transport, Warehouse service | 53.00% | Business combinations involving enterprises not under common control | |
Suqian Tongmeng City Logistics Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Pizhou Tongmeng City Logistics Co.,Ltd. | Xuzhou, Jiangsu province | Xuzhou, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Lianyungang Huaxing Tongmeng City Logistics Co.,Ltd. | Lianyungang, Jiangsu province | Lianyungang, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business combinations involving enterprises not under common control | |
Jiangsu Zhaibianli E-commerce Co.,Ltd | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Commerce | 100.00% | Business combinations involving enterprises not under common |
control
control | ||||||
Hongkong Zhaiugou International Trade Co.,Ltd | Hong Kong,China | Hong Kong,China | Commerce | 100.00% | Business combinations involving enterprises not under common control | |
Guizhou Guijiu Co.,Ltd. | Guiyang, Guizhou province | Guiyang, Guizhou province | Liquor production; Liquor and alcohol sales | 100.00% | Business combinations involving enterprises not under common control | |
Guizhou Guijiu Liquor Operation Management Co.,Ltd. | Guiyang, Guizhou province | Guiyang, Guizhou province | Commerce | 100.00% | Establishment | |
Guizhou Guijiu Trade Co.,Ltd. | Guiyang, Guizhou province | Guiyang, Guizhou province | Commerce | 100.00% | Establishment | |
Guizhou Guijiu Package Co.,Ltd. | Guiyang, Guizhou province | Guiyang, Guizhou province | Guijiu series liquor, compound wine, health care wine packaging | 100.00% | Establishment | |
ZYG E-Commerce HK Limited | Hong Kong,China | Hong Kong,China | Industrial investment | 100.00% | Business combinations involving enterprises not under common control | |
ZYG LTD | Cayman Islands | Cayman Islands | Industrial investment | 69.08% | Business combinations involving enterprises not under common control | |
YangHe International Investment Ltd | British Virgin Islands | British Virgin Islands | Industrial investment | 100.00% | Establishment | |
Jiangsu Shuanggou Healthy Liquor Research institute Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Healthy wine, nutrition and health food research and development | 100.00% | Establishment | |
ZYG Technology Investment Ltd | British Virgin Islands | British Virgin Islands | Industrial investment | 71.03% | Business combinations involving enterprises not under common control | |
Jiangsu Blue Dream E-commerce Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Yanghe Weiketang Network Technology Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Network technology development, technical consultation, technical servic | 100.00% | Establishment | |
Guizhou Welcome Drink Stock Co., Ltd. | Renhuai, Guizhou province | Renhuai, Guizhou province | Liquor manufacture and sales | 100.00% | Business combinations involving enterprises not under common control | |
Suqian Su Wine Logistics Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Road general cargo transport, cargo | 100.00% | Establishment |
distribution,freight forwarder
distribution, freight forwarder | ||||||
Yanghe Chile SPA | Santiago, Chile | Santiago, Chile | Movable and real estate investment services, building construction services | 100.00% | Establishment | |
Jiangsu Yanghe Investment Management Co.,Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Foreign investment, Asset management, Investment consulting | 50.00% | 50.00% | Establishment |
Su Wine Group Nanjing Operation Management Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Enterprise management consulting; Industrial investment; Food sales; Gift sales; House lease; Hotel management | 100.00% | Establishment | |
Jiangsu Zhongshiji liquor Co.,Ltd. | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Food sales, Gift sales | 100.00% | Establishment | |
Yanghe Hong Kong DistilleryCo., Ltd. | Hong Kong,China | Hong Kong,China | Industrial investment | 100.00% | Establishment | |
iangsu Yanghe Calligraphy and Painting Academy | Nanjing, Jiangsu province | Nanjing, Jiangsu province |
100.00% | Establishment |
The shareholding ratio in the subsidiary is different from the voting ratio:
The basis for holding half or less of the voting rights but still controlling the invested entity,and for holding more than half of the voting rights but not controlling the invested entity:
For important structural subjects included in the scope of merging, the basis of control:
Basis for determining whether the company is an agent or a principal:
Other statements:
2. Interests in associates and a joint venture
(1) The impact of the Group’s associates on the Group is not significant.Summarized information is as follows:
Unit: CNY
Closing balance/amount in current period | Opening balance/amount in previous period | |
Associates: | -- | -- |
Aggregated carrying amount of investments | 10,261,147.01 | 10,521,622.18 |
Aggregate of the following items calculated in proportion to shareholding | -- | -- |
--Net profit | -658,669.17 | -6,220,574.92 |
--Other comprehensive income | -342,416.50 | 178,619.29 |
-- Total comprehensive income | -1,001,085.67 | -6,041,955.63 |
Joint ventures:
Joint ventures: | -- | -- |
Aggregated carrying amount of investments | 19,267,230.15 | 14,840,029.20 |
Aggregate of the following items calculated in proportion to shareholding | -- | -- |
--Net profit | 4,599,489.64 | 1,773,286.58 |
-- Total comprehensive income | 4,599,489.64 | 1,773,286.58 |
X. Risks related to financial instrumentsThe Group is exposed to various financial risks in the ordinary course of business, mainlyincluding: credit risk, liquidity risk, market risk, etc. The Company's management is fullyresponsible for the formulation of risk management objectives and policies, and takesresponsibility for risk management objectives and policies. The objective of theCompany’s risk management is to identify and analysis risk, minimizing the adverseimpact of financial risks without excessive influence on the company's competitivenessand resilience.
1. Credit risks
Credit risk refers to the risk that one party of the financial instruments fails to perform itsobligations and causes the financial losses of the other party. Credit risk mainly related tonotes receivables and accounts receivable, in order to control the risk, the Companytakes the following measures:
(1)Bank deposit
The company's bank deposits are mainly deposited in state-owned holding banks, largeand medium-sized listed banks and other commercial banks with high credit. There is nosignificant credit risk and no significant loss caused by default.
(2)Notes receivables and accounts receivables
The Company mainly trades with dealers, according to company credit policy,and adoptsthe way of delivery after the payments finished. For some group purchase business, itonly deals with the reputable group clients, and continuously monitors the balance ofnotes receivables and accounts receivables, as a result, there is no collateral required,and credit risk management concentrates on the clients. The balance of notesreceivables and accounts receivables are small till 31 December 2020. The Companydoes not hold any collateral or other credit enhancement for the balance of accountsreceivables.
(3) Other receivable
The other receivables are mainly saving deposits involving infringement dispute, depositsand petty cash, employee business loan and so on. The Company manages otherreceivables and continuously monitors its balance, to ensure the Company not to facesignificant bad debt risks.
2. Liquidity risk
Liquidity risk refers to the risk of capital shortage when enterprise performs its obligationsrelated to financial liabilities. The Company uses various financing methods such as billclearing and bank loan to optimize the financing structure and maintain the balancebetween financing continuity and flexibility.
The maturity of the financial liabilities held by the Company according to theundiscounted remaining contractual obligations is analyzed as follows:
Item
Item | Closingbalance | ||||
Within 1 year | 1-2 years | 2-3 years | Over 3 years | Total | |
Account payables | 1,151,871,136.29 | 1,151,871,136.29 | |||
Other payables | 1,556,699,290.45 | 1,556,699,290.45 |
Long-term loan | 36,360.00 | 36,360.00 | |||
Long-term payables | 197,049,341.93 | 197,049,341.93 |
(Continued)
Item | Openingbalance | ||||
Within 1 year | 1-2 years | 2-3 years | Over 3 years | Total | |
Account payables | 1,330,649,116.82 | 1,330,649,116.82 |
Other payables | 3,962,515,639.56 | 3,962,515,639.56 | |||
Long-term loan | 72,723.00 | 72,723.00 |
Long-term payables | 197,623,728.85 | 197,623,728.85 |
3. Market risk
Market risk is the fair value of financial instrument or future cash flow fluctuates due tothe fluctuation of market price, and it mainly includes: interest rate risk, foreign exchangerisk, etc.
(1) Interest rate risk
Interest rate risk refers to the fair value of financial instrument or future cash flowfluctuates due to the fluctuation of interest rate. The Company faces the risk of marketinterest rate change mainly related to the Company's borrowing limit.
(2) Foreign exchange risk
Foreign exchange risk arises from fluctuation in exchange rate, relevant to the assetsand liabilities in foreign currency. The less import and export business happened, thelower impact of exchange rate fluctuation on company's operation.
The amount in CNY of the Company’s assets and liabilities shown in foreign currenciesas follows:
Item | Closing balance | Opening balance | ||||
Balance in foreign currency | Exchange rate | Balance in CNY | Balance in foreign currency | Exchange rate | Balance in CNY |
Cash and cash equivalents | ||||||
Include: USD | 1,470,471.60 | 6.5249 | 9,594,680.17 | 5,851,102.50 | 6.9762 | 40,818,461.26 |
HKD | 46,702.46 | 0.84164 | 39,306.66 | 2,267,649.63 | 0.89578 | 2,031,315.19 |
CLP | 60,178,014.00 | 0.009181 | 552,494.35 | 2,259,388,389.00 | 0.0092599 | 20,921,642.76 |
Otherreceivables
Other receivables | ||||||
Include: USD | ||||||
HKD | 125,679.16 | 0.84164 | 105,776.61 | 472,381.42 | 0.89578 | 423,149.83 |
Account payables | ||||||
Include: USD | 499,163.86 | 6.5249 | 3,256,994.27 |
CLP | 35,950.00 | 0.009181 | 330.06 | |||
Other payables |
Include: HKD | 1,542,853.06 | 0.84164 | 1,298,526.85 | 1,465,427.84 | 0.89578 | 1,312,700.95 |
CLP | 14,000.00 | 0.009181 | 128.53 | 14,000.00 | 0.0092599 | 129.64 |
Net amount | 5,736,278.08 | 62,881,738.45 |
XI.Fair value disclosure
1.Fair value of assets and liabilities measured at fair value asat the end of the period
Unit: CNY
Item | Closing fair value | |||
Within Level 1 of the fair value hierarchy | Within Level 2 of the fair value hierarchy | Within Level 3 of the fair value hierarchy | Total | |
Disclosure of continuous measurement at fair value | -- | -- | -- | -- |
(1)Debt instrument investment | 16,148,969,442.65 | 16,148,969,442.65 | ||
(2)Equity instrument investment | 334,393,926.45 | 1,748,210,516.99 | 2,437,363,244.89 | 4,519,967,688.33 |
Total assets continuously measured at fair value | 334,393,926.45 | 1,748,210,516.99 | 18,586,332,687.54 | 20,668,937,130.98 |
Disclosure of discontinuous measurement at fair value | -- | -- | -- | -- |
2.Determination basis of the market value of items measuredcontinuously and discontinuously within Level 1 of the fair valuehierarchy
Local open market closing price
3.Items measured continuously and discontinuously within Level 2 ofthe fair value hierarchy, valuation technique adopted and quantitativeand qualitative information of important parameters
The fair value is assessed on the basis of open market transaction prices and taking into accountliquidity
4.Items measured continuously and discontinuously within Level 3 ofthe fair value hierarchy, valuation technique adopted and quantitativeand qualitative information of important parametersDebt instrument investment:the expected rate of return is taken as an important reference to evaluateits fair valueEquity instrument investment: the cost or the ending net assets of the invested entity is taken as animportant reference to evaluate its fair value
XII. Related parties and related party transactions
1. The parent company of the Company
Name of parentcompany
Name of parent company | Registration place | Business nature | Registered capital | Shareholding ratio by the parent company | Voting Ratio by the parent company |
Jiangsu Yanghe Group Co.,Ltd. | Suqian, Jiangsu | Sales of brewing machinery equipment, export of liquor, import of various raw and auxiliary materials, equipment and accessories required for production, industrial investment. | CNY 500 million | 34.16% | 34.16% |
Information about the Company’s parent companyThe final control party of the Company is State-owned Assets Supervision andAdministration Commission of Suqian.Other statements:
2. Subsidiaries of the Company:
The information about the subsidiaries of the Company refers to Note IX.1 Interests inSubsidiaries.
3. Joint venture and associate of the Company
The information about the joint venture and associate of the Company refers to the NoteIX.2Other joint ventures and associates whose related party transactions with the Companyin the current period or balance formed from related party transactions with the Companyin the prior period as follows:
Name of joint venture and associate | Relationship with the Company |
Diageo International Spirits Company Limited | Joint Venture |
Jiangsu Su Wine Cultural Transmission Co.,Ltd. | Associate |
Nanjing Hesong Culture Technology Co.,Ltd. | Associate |
Jiangsu Xinghe Investment Management Co.,Ltd. | Associate |
Other statements:
4. Other related party
Name of other related party | Relationship with the Company |
Shanghai Haiyan Logistics Development Co.,Ltd. | Holding 9.67% shares |
VSPT, Vi?a San Pedro Tarapacá S.A.
VSPT, Vi?a San Pedro Tarapacá S.A. | Joint stock company, holding 12.50% shares |
Jiangsu Diageo Wine Co. LTD | Controlled by Diageo International Spirits Company Limited, joint venture of Company |
5. Related party transactions
(1) Related transactions of purchase of goods / supply and receipt of laborservicesTable of purchase of goods / Receipt of labor services
Unit: CNY
Related Party | Transaction Content | Amount in current period | Approved transaction amount | Whether it is over transaction amount or not | Amount in previous period |
VSPT, Vi?a San Pedro Tarapacá S.A | Red wine | 6,235,323.42 | 22,491,676.84 | No | 22,491,676.84 |
Nanjing Hesong Culture Technology Co.,Ltd. | Advertising and general publicity expense | 8,416,890.42 | 26,877,500.00 | No | 26,877,500.00 |
Jiangsu Diageo Wine Co. LTD | Liquor | 5,308,792.27 | 9,426,504.96 | No | 9,426,504.96 |
Table of sales of goods/ rendering of labor services
Unit: CNY
Related party | Transaction content | Amount in current period | Amount in previous period |
Shanghai Haiyan Logistics Development Co.,Ltd. | Sales of liquor | 4,354,544.40 | 21,940,314.79 |
Jiangsu Su Wine Cultural Transmission Co.,Ltd. | Sales of liquor | 30,058,725.66 | 27,033,928.43 |
Jiangsu Diageo Wine Co. Ltd | Sales of liquor | 4,097,463.51 | 11,451,243.61 |
Nanjing Hesong Culture Technology Co.,Ltd. | Consulting fee income | 967,085.23 | |
Jiangsu Diageo Wine Co. LTD | Consulting fee income | 673,267.32 | 165,048.55 |
Jiangsu Xinghe Investment Management Co.,Ltd. | Consulting fee income | 2,184,466.02 |
Description of related transactions in the purchase and sale of goods, provision andreceipt of services
(2) Related partylease
The Company asa lessor
Unit: CNY
Related party | Types of Leased Assets | Amount in current period | Amount in previous period |
The Company as a lessee
Unit: CNY
Related party | Types of Leased Assets | Amount in current period | Amount in previous period |
Jiangsu Yanghe Group Co.,Ltd. | House | 201,834.86 |
(3) Compensation for key managers
Item
Item | Amount in current period | Amount in previous period |
6. Receivables and payables of related parties
(1) Receivables
Unit: CNY
Item | Related party | Closing balance | Opening balance | ||
Book balance | Provision for bad debt | Book balance | Provision for bad debt | ||
Receivables | Jiangsu Diageo Wine Co. Ltd. | 8,231,298.10 | 246,938.94 |
(2)Payables
Unit: CNY
Item | Related party | Closing balance | Opening balance |
Contract liabilities | Shanghai Haiyan Logistics Development Co.,Ltd. | 6,396,586.54 | 3,057,658.65 |
Contract liabilities | Jiangsu Su Wine Cultural Transmission Co.,Ltd. | 7,523,939.23 | 7,078,584.07 |
Accounts payables | Jiangsu Diageo Wine Co. Ltd. | 255,806.65 | |
Other Payables | Shanghai Haiyan Logistics Development Co.,Ltd. | 83,531.60 | 83,709.60 |
Other Payables | Jiangsu Su Wine Cultural Transmission Co.,Ltd. | 940,228.00 | 900,000.00 |
XIII. Commitments and contingencies
1. Significant commitments
Significant commitments existing on the balance sheet dateBy the end of 31 December 2020, there were no significant commitments needed to bedisclosed.
2. Contingencies
(1)Significant contingencies at the balance sheet date:
Regarding the tort liability dispute case of ICBC Zhengzhou Jiefang Road Branch, SuWine Group Trade Co., Ltd. applied for a claim, requesting the defendant to jointly andseverally compensate the plaintiff with CNY 46,025,000.00 of principal and interest lossduring the deposit period (The interest loss is based on CNY 103,250,000.00 and it iscalculated from 21 May 2014 according to the loan interest rate of the People's Bank ofChina in the same period and the same file. Among those, CNY 18,257,000.00 iscalculated till 8 September 2017, CNY 38,968,000.00 is calculated till 13 December 2017,and CNY 46,025,000.00 is calculated till the actual date of payment).
According to the Civil Judgment of Suqian Intermediate People's Court of JiangsuProvince, the defendant was liable for compensation of 70% of the total loss, and thedefendant was ordered to pay the plaintiff Su Wine Group Trade Co., Ltd. loss of interest(the calculation method of interest: the interest rate standard is calculated according tothe one-year fixed deposit interest rate on the day of 21 May 2013 of the Industrial andCommercial Bank of China Zhengzhou Jiefang Road Branch, where CNY 90 million isthe principal from 21 May 2013 to 7 September 2017; CNY 71.7433 million is calculatedfrom 8 September 2017 to 12 December 2017; CNY 32.7775 million is calculated from 13December2017to the date of actual payment. The sum of the interest calculated above ismultiplied by 70%.)
Su Wine Group Trade Co., Ltd. dissatisfied with the above judgment and has appealed tothe Jiangsu Provincial Higher People's Court. On 25 July 2019, Jiangsu Provincial HigherPeople's Court (2019) Su Min Zhong No. 1157 "Notice of Acceptance of the Case" wasreceived. The case is in the process.
Except for the above event, by the end of 31 December 2020, the Company had no othersignificant contingencies required to be disclosed.
(2)If no contingencies that need to be disclosed, statement should be made.The Company has no material contingencies to disclose.
XIV. Post balance sheet event
1.The distribution of profits
Unit: CNY
Profits or dividends planed to be distributed
Profits or dividends planed to be distributed | 28,279,648,717.65 |
Profits or dividends declared to be paid after examination and approval | 4,491,980,070.00 |
2.Other notes to post balance sheet event
On 11 March 2021, Guizhou GuijiuGroup Co., Ltd., a Company’s subsidiary, (hereinafterreferred to as GuijiuCompany) received court summonsissued by the people's court fromXiuwen County in Guizhou province. The case number is(2021) Qian 0123 No.949 andthe civil complaint is about Guizhou Construction Engineering Group Eighth ConstructionEngineering Co., Ltd. suing Guizhou GuijiuGroup Co., Ltd.. The claims: (1) request thatthe defendant be ordered to pay the plaintiff the construction cost amount of RMB9,537,780.74 immediately and bear the overdue payment interest until the date of theactual payment (the interest is based on RMB 9,537,780.74 and calculated according tothe standard interest rate of similar loans issued by the People's Bank of China for thesame period from 8 October 2018.The estimated amount is CNY 1,395,695.25 sinceprosecution).(2) The litigation costs of this case shall be borne by the defendant.On June 2016, according to the acquisition agreement sigened by the Company(Party A)and Guizhou Huixian Investment Management Co., Ltd. (Party B), Guijiu company (PartyC), Wang Xiaochun (Party D) , any liabilities not included in the "List of Liabilities" arisingout of the facts prior to completion after the equity acquisition shall be borne by Party B. IfParty A and Party C bear the liabilities in advance, Party B shall fully compensate for theliabilities, and Party D agrees to undertake joint and several liability for theresponsibilities and obligations that should be borne by Party B as mentioned above.Thematters involved in the above litigation are liabilities not included in the "List of Liabilities"caused by the facts before the completion and shall be borne by Party B.As of 27 April 2021, the Company has no other post balance sheet event that need to bedisclosed other than the above.
XV. Notes to main items of parent company financial statements
1. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: CNY
Type
Type | Closing balance | Opening balance | ||||||||
Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
Amount | Proportion | Amount | Proportion of provision | Amount | Proportion | Amount | Proportion of provision | |||
Including: | ||||||||||
Provision for bad debts by portfolio | 387,657,700.12 | 100.00% | 387,657,700.12 | 900,499,168.05 | 100.00% | 246,938.94 | 0.03% | 900,252,229.11 | ||
Including: | ||||||||||
Risk portfolio | 8,231,298.10 | 0.91% | 246,938.94 | 3.00% | 7,984,359.16 | |||||
Otherportfolio | 387,657,700.12 | 100.00% | 387,657,700.12 | 892,267,869.95 | 99.09% | 892,267,869.95 | ||||
Total | 387,657,700.12 | 100.00% | 387,657,700.12 | 900,499,168.05 | 100.00% | 246,938.94 | 0.03% | 900,252,229.11 |
Provision for bad debts by individual
Unit: CNY
Name of client | Closing balance | |||
Book balance | Provision for bad debts | Proportion | Reason |
Provision for bad debts by portfolio:other portfolio
Unit: CNY
Name of portfolio | Closing balance | ||
Accounts receivables | Provision for bad debt | Proportion | |
Otherportfolio | 387,657,700.12 | ||
Total | 387,657,700.12 | -- |
Notes to determine provision for bad debt by portfolio:
The Company classifies items without significant recovery risk receivables as other portfolio such as items from subsidiaries in the consolidationscope, tax refunds receivable, collection and withholding of funds. There is no provision for bad debt for them.Provision for bad debts by portfolio:
Unit: CNY
Name of portfolio
Name of portfolio | Closing balance | ||
Accounts receivables | Provision for bad debt | Proportion |
Notes to determine provision for bad debt by portfolio:
If the Company uses the accounts receivable provision for bad debts according to the general model of expected credit loss, please disclose therelevant information of provision for bad debt by referring to the disclosure method of other receivables:
? Applicable √ N/A
Analysis by aging
Unit: CNY
Aging
Aging | Closing balance |
Within 1 year (including 1 year) | 387,657,700.12 |
Total | 387,657,700.12 |
(2)Provision for bad debts that is accrued, recovered or reversed during this periodProvision for bad debts during current period
Unit: CNY
Category | Opening balance | Changes in the current period | Closing balance | |||
Provision | Recovered or reversed | Write off | Others | |||
Provision for bad debt for Accounts receivables | 246,938.94 | 246,938.94 | ||||
Total | 246,938.94 | 246,938.94 |
Significant amount of reversal or recovery in current period:
Unit: CNY
Company name | Amount recovered or reversed | Ways of recovery |
(3)Top five entities with the largest balances of the accounts receivables
Unit: CNY
Company’s name | Closing balance | Proportion in the total accounts’ receivables (%) | Provision amount |
Jiangsu Shuanggou Distillery Stock Co.,Ltd. | 132,516,166.33 | 34.18% | |
Hubei Lihuacun Liquor Industry Co.,Ltd. | 127,597,734.21 | 32.92% | |
Siyang Lantu Liquor Operation Co.,Ltd. | 71,494,537.45 | 18.44% | |
Jiangsu Yanghe Liquor Operation Management Co.,Ltd. | 46,231,563.47 | 11.93% | |
Ningxiang Miluochun Trade Co.,Ltd. | 9,817,698.66 | 2.53% | |
Total | 387,657,700.12 | 100.00% |
2.Other receivables
Unit: CNY
Item | Closing balance | Opening balance |
Dividend receivable | 1,775,818,203.33 | |
Other receivables | 8,627,951,102.36 | 8,154,899,373.55 |
Total | 10,403,769,305.69 | 8,154,899,373.55 |
(1) Dividend receivable
Unit: CNY
Item | Closing balance | Opening balance |
Jiangsu Shuanggou Distillery Stock Co.,Ltd. | 1,775,818,203.33 | |
Total | 1,775,818,203.33 |
(2) Other receivables
1) Disclosure of other receivable by categories
Unit: CNY
Nature of other receivables
Nature of other receivables | Closing balance | Opening balance |
Within the scope of consolidation the subsidiary borrows | 8,625,917,478.43 | 8,153,014,458.45 |
Cash deposit | 15,020,000.00 | 15,020,000.00 |
Business loans and petty cash | 1,203,377.75 | 3,429,429.04 |
Other receivables | 3,768,716.91 | 3,038,490.82 |
Total | 8,645,909,573.09 | 8,174,502,378.31 |
2) Provision for bad debt
Unit: CNY
Bad debts | Phase 1 | Phase 2 | Phase 3 | Total |
Expected credit losses in the next 12 months | Expected credit loss for lifetime (No credit loss occurred) | Expected credit loss for lifetime (Credit loss occurred) | ||
Balance as at 1 January 2020 | 67,662.44 | 19,535,342.32 | 19,603,004.76 | |
Change of opening balance as at 1 January 2020 in current period | —— | —— | —— | —— |
Provision in 2020 | 15,343.33 | 15,343.33 | ||
Reverse in 2020 | 1,659,877.36 | 1,659,877.36 | ||
Balance as at 31 December 2020 | 83,005.77 | 17,875,464.96 | 17,958,470.73 |
Significant change of the book balance of provision during the period? Applicable √ N/A
Other receivables by aging
Unit: CNY
Aging | Closing balance |
Within 1 year(including 1 year) | 8,614,193,810.38 |
1-2 years | 8,834,302.50 |
2-3 years | 1,828,000.00 |
Over 3 years | 21,053,460.21 |
3-4 years | 291,400.00 |
4-5 years | 41,319.12 |
Over 5 years | 20,720,741.09 |
Total | 8,645,909,573.09 |
3) Provision, recovery or reversal for bad debt duringthis period
Provision for bad debtduring this period:
Unit: CNY
Category | Opening balance | Changes in the current period | Closing balance | |||
Provision | Recovered or reversed | Write off | Other changes | |||
Provision for other receivables bad | 19,603,004.76 | 15,343.33 | 1,659,877.36 | 17,958,470.73 |
debt
debt | ||||||
Total | 19,603,004.76 | 15,343.33 | 1,659,877.36 | 17,958,470.73 |
Significant amount of reversal or recovery during this period:
Unit: CNY
Company name | recovery or reversal | Way of recovery |
(4) Top five entities with the largest balances of the other receivables
Unit: CNY
Company’s Name | Category | Closing balance | Aging | Proportion in total receivables | Provisioning amount at period end |
Jiangsu Yanghe Investment Management Co., Ltd. | Loan | 7,640,976,249.15 | With in 1 year | 88.38% | |
Su Wine Group Jiangsu Wealth Management Co.,Ltd. | Loan | 800,000,000.00 | With in 1 year | 9.25% | |
Guizhou Guijiu Co.,Ltd. | Loan | 163,469,544.92 | With in 1 year | 1.89% | |
Jiangsu Juntai Properties Co.,Lt., Suqian Guotai Department Store Co.,Ltd. | deposit | 15,000,000.00 | Over 5 years | 0.17% | 15,000,000.00 |
Hubei Lihuacun Liquor Industry Co,Ltd. | Loan | 14,177,100.00 | With in 1 year 460,000.00,1-2 years 8,830,000.00, 2-3 years 848,000.00,Over 3 years 4,039,100.00 | 0.16% | |
Total | -- | 8,633,622,894.07 | -- | 99.85% | 15,000,000.00 |
3. Long-term equity investments
Unit: CNY
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Investment in subsidiaries | 7,964,291,378.23 | 7,964,291,378.23 | 7,964,291,378.23 | 7,964,291,378.23 | ||
Total | 7,964,291,378.23 | 7,964,291,378.23 | 7,964,291,378.23 | 7,964,291,378.23 |
(1) Investment in subsidiaries
Unit: CNY
Investee | Opening balance | Increase in the current period | Closing balance | Closing balance of provision for impairment | |||
Increase | Decrease | Provision for impairment | Others | ||||
Suqian Yanghe Guibinguan | 700,000.00 | 700,000.00 |
Co.,Ltd.
Co.,Ltd. | |||||||
Jiangsu Shuanggou Distillery Stock Co.,Ltd. | 1,713,152,320.00 | 1,713,152,320.00 | |||||
Su Wine Trade Group Co.,Ltd. | 285,225,078.23 | 285,225,078.23 | |||||
Jiangsu Yanghe Liquor Operation Managment Co.,Ltd | 10,983,280.00 | 10,983,280.00 | |||||
Jiangsu Dongdi Union International Trade Co.,Ltd. | 5,000,000.00 | 5,000,000.00 | |||||
Jiangsu Dongdixinghui International Trade Co.,Ltd | 5,000,000.00 | 5,000,000.00 | |||||
Siyang Lantu Liquor Operation Co.,Ltd. | 3,161,700.00 | 3,161,700.00 | |||||
Hubei Lihuacun Liquor Industry Co.,Ltd. | 3,000,000.00 | 3,000,000.00 | |||||
Ningxiang Miluochun Liquor Industry Co.,Ltd. | 2,129,000.00 | 2,129,000.00 | |||||
Harbin Binzhou Brewery Co.,Ltd. | 2,000,000.00 | 2,000,000.00 | |||||
Su Wine Group Jiangsu Wealth Management Co.,Ltd. | 3,000,000,000.00 | 3,000,000,000.00 | |||||
Jinagsu Kelite Biology Technology Research Institute Co.,Ltd. | 10,000,000.00 | 10,000,000.00 | |||||
Jiangsu Lion and Sheep Network Technology Co.,Ltd. | 5,460,000.00 | 5,460,000.00 | |||||
Guizhou Guijiu Co.,Ltd. | 943,300,000.00 | 943,300,000.00 | |||||
Jiangsu Yanghe Weiketang Network Technology Co.,Ltd. | 300,000.00 | 300,000.00 | |||||
Yanghe Chile SPA | 456,880,000.00 | 456,880,000.00 | |||||
Jiangsu Yanghe Investment Management Co., Ltd. | 1,500,000,000.00 | 1,500,000,000.00 |
Yanghe HongKong Liquor Co.,Ltd.
Yanghe Hong Kong Liquor Co., Ltd. | 18,000,000.00 | 18,000,000.00 | |||||
Total | 7,964,291,378.23 | 7,964,291,378.23 |
4. Operating revenue and cost of sales
Unit: CNY
Item | Current period | Previous period | ||
Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
Primary business | 9,161,576,332.09 | 4,195,871,188.04 | 8,802,985,205.67 | 4,522,356,318.57 |
Other business | 653,598,000.33 | 607,411,453.26 | 814,151,123.47 | 778,500,563.64 |
Total | 9,815,174,332.42 | 4,803,282,641.30 | 9,617,136,329.14 | 5,300,856,882.21 |
Information relating to revenue
Unit: CNY
Contract type | Division 1 | Division 2 | Total |
Including: | |||
Including: |
Information relating to performance obligationsN/AInformation relating to the transaction price apportioned to the remaining performanceobligations:
At the end of this report, the amount of revenue corresponding to the performanceobligations with the contracts signed but not performed or not performed is CNY12,161,186,226.79, of which CNY 10,305,933,049.04 is expected to be recognized in2021, and CNY 1,855,253,177.75 is expected to be recognized in 2022. CNY 0.00 isexpected to be recognized as revenue in the year.
5. Investment income
Unit: CNY
Item | Current period | Previous period |
Investment income from long-term equity investments under the equity method | 6,249,926,000.50 | 6,416,968,211.24 |
Investment income from disposing long-term equity investments | 27,117,336.74 | |
Investment income from financial assets held for trading during the holding period | 6,204,748.21 | 6,946,070.62 |
Investment income from disposal of financial assets held for trading | 212,610,583.98 | 407,441,556.04 |
Total | 6,468,741,332.69 | 6,858,473,174.64 |
XVI. Supplementary information
1. Detailed statement of non-recurring profits and losses
?Applicable √ N/A
Unit: CNY
Item | Amount | Notes |
Profit or loss from disposal of non-current assets | -4,735,638.66 | |
Government grants accounted for, in the profit or loss for the current period (except for the government grants closely related to the business of the | 98,175,595.19 |
Company and given at a fixed amount orquantity in accordance with the state'suniform standards)
Company and given at a fixed amount or quantity in accordance with the state's uniform standards) | ||
In addition to the effective hedging business related to the company's normal business operations, changes in fair value from holding financial assets held for trading, derivative financial assets, financial liabilities held for trading, fair value changes, and investment income from disposal of financial assets held for trading and derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other debt investments | 2,356,818,184.75 | |
Other non-operating income and expenditure except above-mentioned items | -11,429,697.22 | |
Other profit and loss items that conform to the definition of non-recurring profits and losses | 818,031.70 | |
Less: Effect of income tax | 609,395,883.18 | |
Effect of minority equity | 90,900.93 | |
Total | 1,830,159,691.65 | -- |
Statement for extraordinary gain and loss items that the Company defines according tothe definition in “Explanatory Announcement of Information Disclosure of Company thatIssues Securities publicly No.1- Extraordinary Gain and Loss” and definition of recurrentgain and loss items that are listed as extraordinary gain and loss in the “ExplanatoryAnnouncement of Information Disclosure of Company that Issues Securities publiclyNO.1- Extraordinary Gain and Loss”:
? Applicable √ N/A
2. Return on equity and earnings per share
Profit during reporting period | Weighted average ROE | EPS(CNY/Share) | |
Basic EPS | Diluted EPS | ||
Net profits attributable to ordinary shareholders of the Company | 20.20% | 4.9843 | 4.9843 |
Net profits attributable to ordinary shareholders of the Company after deduction of extraordinary gain and loss | 15.26% | 3.7651 | 3.7651 |
3.Differences in accounting data under domestic and overseasaccounting standards
3.1. Differences in the net profits and net assets disclosed in thefinancial reports prepared under the international and China accountingstandards? Applicable √ N/A?
3.2. Differences in the net profits and net assets disclosed in thefinancial reports prepared under the outbound and China accountingstandards
? Applicable √ N/A?
3.3. Explain the reasons for the differences in accounting data underdomestic and foreign accounting standards, and indicate the name ofthe overseas institution if the differences are adjusted for the dataaudited by the overseas audit institution
4. Others
Section XIIIDocuments Available for Preference
1. Financial statements signed and stamped by the legal representative, the person incharge of accounting affairs and the person in charge of accounting department;
2. The original of the auditor’s report with the seal of the accounting firm, and signed andstamped by CPAs;
3. The originals of all company documents and announcements that are disclosed to thepublic via media designated by CSRC during the reporting period;
4. The original of 2020 annual report signed by chairman.