Jiangsu Yanghe Distillery Co., Ltd.
2021 Annual Report
April 2022
Section I Important Statements, Contents and Definitions
The board of directors, board of supervisors, directors, supervisors and senior management of Jiangsu YangheDistillery Co., Ltd. (hereinafter referred to as the Company) hereby guarantee that the information presented inthis report is free of any false records, misleading statements or material omissions, and shall individually andtogether be legally liable for truthfulness, accuracy and completeness of its contents.
Mr. Zhang Liandong, responsible person for the Company, Mr. Yin Qiuming, responsible person for accountingaffairs and Mr. Zhao Qike, responsible person for accounting department (accounting supervisor) have warrantedthat 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 be considered asvirtual promises of the Company to investors. Investors and people concerned should maintain adequate riskawareness and understand the difference between plans, predictions and promises. Investors are kindlyreminded 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 11.Outlookfor the Future Development of the Company in Section III Management Discussion and Analysis). Investors arekindly reminded to pay attention to relevant content.
The profit distribution plan approved by the board of directors: based on total share capital participating in thedividend on the registration date (excluding the repurchased shares held in the Company's special repurchasesecurities account) when the profit distribution plan is implemented in the future, a cash dividend of CNY 30.00(tax inclusive) will be distributed for every 10 existing shares held, 0 shares of bonus shares (tax inclusive), andreserves would not be converted into share capital.
The Company’s Chinese 2021 Annual Report was publicly disclosed on the Shenzhen Stock Exchangeand www.cninfo.com.cn on 29 April 2022. 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……………………………….2Section II Company Profile and Key Financial Results……………………………………….5Section Ⅲ Management Discussion and Analysis…………………………………………..10Section Ⅳ Corporate Governance…………………………………………………………………..33Section Ⅴ Environment andSocial Responsibility………………………………………….67Section Ⅵ Significant Events…………………………………………………………………………71Section Ⅶ Changes in Shares and Information about Shareholders………………..94Section Ⅷ Information about Preference Shares……………………………………………103Section Ⅸ Information about Bonds…………………………………………………………….104Section Ⅹ Financial Report……………………………………………………………………………105
Definitions
Term
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. 2021 to 31 Dec. 2021 |
The report | Refer to | 2021 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 Comapny | Refer to | Guizhou Guijiu Co., Ltd. |
Lihuacun Distillery | Refer to | Hubei Lihuacun Distillery Co., Ltd. |
Inside and outside the province | Refer to | Inside and outside Jiangsu Province |
Section II Company Profile and Key Financial Results
1. Corporate information
Stock abbreviation
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 | ||
Historical changes of the company's registered address | N/A | ||
Business address | No. 118, Jiudu Avenue, Yanghe District, Suqian City, Jiangsu Province, China | ||
Postal code of business address | 223800 | ||
Company website | http://www.chinayanghe.com | ||
yanghe002304@chinayanghe.com |
2. Contact us
Company secretary | Representative for securities affairs | |
Name | Lu Hongzhen | Sun Dali |
Address | No. 118, Jiudu Avenue, Yanghe District, Suqian City, Jiangsu Province. | No. 118, Jiudu Avenue, Yanghe District, Suqian City, Jiangsu Province. |
Tels. | 0527-84938128 | 0527-84938128 |
Fax | 0527-84938128 | 0527-84938128 |
yanghe002304@chinayanghe.com | yanghe002304@chinayanghe.com |
3. Information disclosure and place where the annual report is kept
The website of the stock exchange wherethe company discloses the annual report
The website of the stock exchange where the company discloses the annual report | Securities Times, Shanghai Securities Times, China Securities Journal, Securities Daily |
Media name and website of the annual report disclosed by the company | 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 | 14-16/F., Block A, Zhengtai Center, No.159 Taishan Road, Jianye District, Nanjing, Jiangsu Province |
Name of accountants for writing signature | Li Laimin, Li Yan |
Sponsors engaged by the Company to continuously perform its supervisory function during the reporting period
□Applicable √ N/A
Financial adviser engaged by the Company to continuously perform its supervisory function during the reportingperiod
□Applicable √ N/A
6. Key accounting data and financial indicators
Whether the Company performed a retroactive adjustment or restatement of accounting data
2021 | 2020 | YoY Change | 2019 | |
Operating revenues (CNY) | 25,350,178,204.45 | 21,101,051,131.79 | 20.14% | 23,126,476,885.07 |
Net profits attributable to shareholders of the Company (CNY) | 7,507,682,797.40 | 7,482,228,633.63 | 0.34% | 7,382,822,726.87 |
Net profits attributable to shareholdersof the Company before non-recurring gains and losses (CNY) | 7,372,758,257.29 | 5,652,068,941.98 | 30.44% | 6,555,890,029.81 |
Net cash flows from operating activities (CNY) | 15,318,165,480.53 | 3,978,790,835.80 | 285.00% | 6,797,891,871.41 |
Basic earnings per share (CNY/share) | 5.0141 | 4.9843 | 0.60% | 4.8991 |
Diluted earnings per share (CNY/share) | 5.0141 | 4.9843 | 0.60% | 4.8991 |
Weighted average ROE | 18.55% | 20.20% | -1.65% | 21.21% |
At the end of 2021 | At the end of 2020 | YoY Change | At the end of 2019 | |
Total assets (CNY) | 67,798,704,193.76 | 53,866,259,306.59 | 25.86% | 53,455,037,840.98 |
Net assets attributable to shareholders of the Company (CNY) | 42,486,209,789.59 | 38,484,583,983.54 | 10.40% | 36,508,835,491.47 |
The Company's net profit before or after deducting non-recurring profits and losses in the last three fiscal years isnegative, and the audit report of the last year shows that the Company's ability to continue operating isuncertain
□Applicable √ N/A
The net profit before or after deducting non-recurring profits and losses is negative
□Applicable √ N/A
7. Differences in accounting data under domestic and overseasaccounting standards
1. Differences in the net profits and net assets disclosed in the financial reports prepared under the internationaland China accounting standards
□Applicable √ N/A
No such differences during this period.
2. Differences in the net profits and net assets disclosed in the financial reports prepared under the outbound
and China accounting standards
□Applicable √ N/A
No such differences during this period.
8. Key financial results by quarter
Unit: CNY
Q1 | Q2 | Q3 | Q4 | |
Operating revenues | 10,520,001,017.41 | 5,023,263,888.13 | 6,398,931,341.75 | 3,407,981,957.16 |
Net profits attributable to shareholders of the Company | 3,862,525,751.53 | 1,798,920,060.49 | 1,551,077,792.96 | 295,159,192.42 |
Net profits attributable to shareholders of the Company before deductingnon-recurring profits and losses | 3,810,668,717.54 | 1,357,214,536.05 | 1,682,026,888.45 | 522,848,115.25 |
Net cash flows from operating activities | 2,919,559,010.60 | -826,313,876.01 | 3,380,809,975.07 | 9,844,110,370.87 |
Whether there are any material differences between the financial indicators above or their summations andthose which have been disclosed in quarterly or semi-annual reports.
□Applicable √ N/A
9. Non-recurring profits and losses
Unit: CNY
Item | 2021 | 2020 | 2019 | Note |
Profit or loss from disposal of non-current assets (including the write-off portion of the impairment provision) | -10,687,905.76 | -4,735,638.66 | 13,797,266.00 | |
Government grants included in the profit or loss for the current period (except those closely related to the normal business of the company, in line with the provisions of national policies, and continuously enjoyed according to a certain standard quota or quantity) | 87,366,302.47 | 98,175,595.19 | 85,605,383.19 | |
Except for the effective hedging business related to the normal business of the company, profits and losses from changes in fair value arising from holding trading financial assets and trading financial liabilities, as well | 153,349,470.08 | 2,356,818,184.75 | 973,456,912.43 |
as the investment income obtained from thedisposal of trading financial assets, tradingfinancial liabilities and financial assetsavailable for sale
as the investment income obtained from the disposal of trading financial assets, trading financial liabilities and financial assets available for sale | ||||
Impairment provision reversal of the accounts receivables on which the impairment test is carried out individually | 12,009,031.70 | |||
Other non-operating income and expenditure except above-mentioned items | -31,556,128.88 | -11,429,697.22 | 12,845,147.02 | |
Other profit and loss items that conform to the definition of non-recurring profits and losses | 3,484,445.51 | 818,031.70 | 1,670,388.78 | |
Less: Corporate income tax | 79,096,331.61 | 609,395,883.18 | 260,122,467.95 | |
Minority interests (after tax) | -55,656.60 | 90,900.93 | 319,932.41 | |
Total | 134,924,540.11 | 1,830,159,691.65 | 826,932,697.06 | -- |
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□Applicable √ N/A
The company has no specific circumstances of other profit and loss items that meet the definition ofnon-recurring profit and loss.
Description of defining non-recurring profit and loss items listed in the Explanatory Announcement No. 1 onInformation Disclosure for Listed Companies -Non-recurring Profits and Losses as recurring profit and loss items
□Applicable √ N/A
There is no such situation that the company classifies the non-recurring profit and loss items listed in theExplanatory Announcement No. 1 on Information Disclosure for Listed Companies -Non-recurring Profits andLosses as recurring profit and loss items.
Section Ⅲ Management Discussion and Analysis
1. Industry conditions faced by the company during the reporting period
According to the data of the National Bureau of Statistics, there were 965 baijiu enterprises above designatedsize nationwide in 2021, a decrease of 75 compared with the previous year; the output of Chinese Baijiu was7,156,300.00 kiloliters, a year-on-year decrease of 0.59%; The operating revenue was CNY603.348 billion, ayear-on-year increase of 18.69%; the total profit was CNY170.194 billion, a year-on-year increase of 32.95%. Thetotal production and sales volume of Chinese Baijiu industry were stable, and the competitions among famousliquor producing areas, regional markets and price segments intensified, the trend of consolidation, branding andpremiumization became more prominent. The development quality of Chinese Baijiu industry was furtherimproved.
Yanghe is a large Chinese baijiu production enterprise enjoying high brand awareness and reputation nationwide.It is the only enterprise in the Chinese baijiu industry that owns two famous Chinese Baijiu, Yanghe andShuanggou, two time-honored Chinese brands and six well-known Chinese trademarks. The company's leadingproducts are Dream Blue, Sky Blue, Ocean Blue, Sujiu, Zhenbaofang, Yanghe Daqu, Shuanggou Daqu and so on.During the reporting period, the company complied with the development trend of the industry, activelyresponded to market competition, and achieved an operating revenue of CNY25.35 billion, a year-on-yearincrease of 20.14%; the company realized a net profit attributable to shareholders of listed companies ofCNY7.508 billion, a year-on-year increase of 0.34%; it realized a net profit of CNY7.373 billion excludingnon-recurring profits and losses attributable to shareholders of listed companies, with a year-on-year increase of
30.44%. The sales scale of the company ranked among the top three in the industry.
2. Main Businesses of the Company During the Reporting Period
The company shall comply with the disclosure requirements of food and wine manufacturing industries inSelf-regulatory Guidelines for Listed Companies in Shenzhen Stock Exchange No. 3 - Industry InformationDisclosure
The main business of the company is the production and sales of Chinese Baijiu, it is produced by solid-statefermentation and it sales mainly adopt two modes: wholesale distribution and online direct sales.The company'smain business and business model did not change during the reporting period.According to the IndustryClassification Guidelines for Listed Companies (revised in 2012) issued by the CSRC, the company belongs to the"C15 wine, beverage and refined tea manufacturing industry".
Information about brand operationThe Company’s products include Dream Blue, Sujiu, Sky Blue, Zhenbaofang, Ocean Blue, Yanghe Daqu,Shuanggou Daqu, Guijiu, Sidus Wine and so on. According to the price range standard of ex-factory price, theCompany groups the products into mid/high end and ordinary products. The mid/high end products refer tothose with ex-factory price ≥ CNY 100 / 500ml, mainly including Dream Blue craft class, Dream Blue M9,Dream Blue M6 +, Dream Blue Crystal version, Su wine, Sky Blue, Zhenbaofang (Difang, Shengfang), Ocean Blueand so on. Ordinary products refer to those with ex-factory price <CNY 100 / 500ml, mainly including YangheDaqu and Shuanggou Daqu.
The revenue of various products is as follows:
Unit: CNY
Products
Products | Operating revenue | |
2021 | YoY change | |
Mid/high end products | 21,520,732,572.97 | 21.95% |
Ordinary products
Ordinary products | 3,117,941,516.60 | 16.05% |
Main sales modelThe Company sells its products mainly through distributors. Its sales models include wholesale distribution andonline direct selling, among which wholesale distribution is the main sales model.
□Applicable √ N/A
1. Disclosure of main business composition by different types
Unit:CNY
Types | Operating revenue | YoY change | Operating cost | YoY change | Gross margin | YoY change |
By sales model |
Wholesaledistribution
Wholesale distribution | 24,274,039,992.27 | 21.32% | 5,650,652,950.90 | 8.71% | 76.72% | 5.31% |
Online direct selling | 364,634,097.30 | 11.85% | 52,210,097.57 | 14.00% | 85.68% | 8.98% |
Subtotal | 24,638,674,089.57 | 21.17% | 5,702,863,048.47 | 8.76% | 76.85% | 2.64% |
By geographical segment
By geographical segmentJiangsu
Jiangsu | 11,555,538,148.01 | 20.87% | 2,936,974,469.96 | 7.46% | 74.58% | 3.17% |
Ex-Jiangsu | 13,083,135,941.56 | 21.43% | 2,765,888,578.51 | 10.18% | 78.86% | 2.16% |
Subtotal
Subtotal | 24,638,674,089.57 | 21.17% | 5,702,863,048.47 | 8.76% | 76.85% | 2.64% |
By product
By product | ||||||
Mid/high end products | 21,520,732,572.97 | 21.95% | 4,029,165,777.86 | 13.31% | 81.28% | 1.43% |
Ordinaryproducts
Ordinary products | 3,117,941,516.60 | 16.05% | 1,673,697,270.61 | -0.82% | 46.32% | 9.13% |
Subtotal | 24,638,674,089.57 | 21.17% | 5,702,863,048.47 | 8.76% | 76.85% | 2.64% |
The company's main products are classified according to the price range standard of ex-factory price, includingmedium/high end products ≥ 100 CNY / 500ml and ordinary products < 100 CNY / 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 | 2,950 | 314 | 480 |
Ex-Jiangsu
Ex-Jiangsu | 5,192 | 1,377 | 2,120 |
Total | 8,142 | 1,691 | 2,600 |
During the reporting period, the change in the number of distributors was mainly due to the company's focus on
building strategic leading products and optimizing the structure and layout of distributors around the principle ofbeing close to distributors, stablizing distributors, supporting distributors and enriching distributors.
3. Settlement method and distribution method
The Company mainly adopts the bank transfer method for settlement, and adopts the method of paymentbefore goods for product sales.
4. Sales amount and sales proportion of the top five distributors
In 2021, the total sales amount of the top five distributors was CNY 1083.7888 million, accounting for 4.28% ofthe total sales of this year. Among the sales of the top five distributors, the sales from related parties were CNY 0,accounting for 0% of the total sales of this year. The total amount of receivables of the top five distributors at theend of the period was zero.Retail stores 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 2021 | Sales amount in 2020 | YoY change |
T-mall, JD.COM and other platforms
T-mall, JD.COM and other platforms | 364,634,097.30 | 326,000,641.26 | 11.85% |
The sales price of the main products accounting for more than 10% of the total operating revenue of the currentperiod changed by more than 30% compared with the previous reporting period
□Applicable √ N/A
Procurement mode and content
Unit:CNY
Procurement mode | Procurement content | Amount |
Market bidding | raw materials and packaging materials | 6,333,451,743.89 |
Marketing purchase | Energy | 393,687,292.50 |
Procurement of raw materials from cooperatives or farmers accounted for more than 30% of the total purchaseamount
□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 raw material crushing,fermentation, distillation, grade storage, liquor body design and combination, product packagingCommissioned production
□Applicable √ N/A
The main components of operating costs
Unit:CNY
Types | Cost item | 2021 | 2020 | YoY change | ||
Amount | As a percentage of operating cost | Amount | As a percentage of operating cost |
Chinece
Baijiu
Chinece Baijiu | Direct materials | 4,033,119,166.37 | 64.47% | 3,735,886,638.99 | 63.84% | 7.96% |
Direct labor | 1,083,148,551.48 | 17.32% | 900,387,427.26 | 15.39% | 20.30% | |
Fuels and energy | 234,523,774.33 | 3.75% | 211,348,204.70 | 3.61% | 10.97% | |
Manufacturing overhead | 252,473,495.64 | 4.04% | 297,087,576.41 | 5.08% | -15.02% |
Output and inventory
1. Production volume, sales volume and inventory of major products
Types | Item | Unit | 2021 | 2020 | YoY change |
Chinese Baijiu | |||||
Sales | Ton | 184,001.07 | 155,757.37 | 18.13% | |
Production | Ton | 204,331.95 | 161,498.22 | 26.52% | |
Inventory | Ton | 44,228.48 | 23,897.60 | 85.08% |
2. Inventory of finished and semi-finished Baijiu at the end of the period
Inventory of finished Baijiu (ton) | Inventory of semi-finished Baijiu (including raw liquor) (ton) |
44,857.61 | 619,449.64 |
3. Capacity of the Company
Name of production entity | Design capacity of finished products (ton) | Actual capacity in 2021 (ton) |
Yanghe (including Yanghe branch and Siyang branch) | 222,545 | 149,518.69 |
Shuanggou Distillery
Shuanggou Distillery | 97,040 | 52,588.63 |
3. Analysis of core competitiveness
The Company has significant advantages in natural environment, quality technology, brand building, marketingnetwork and so on. The Company has formed its unique core competitiveness, which has not changed during thereporting period.
1. Natural environment advantage
The Company is located in Suqian, the capital of Chinese Baijiu with 'three rivers, two lakes and one wetland’. Asone of the three famous wetlands in the world, Suqian enjoys equal popularity with the Scotch whisky producingarea and the French Cognac producing area. The long history and unique ecological environment provide a goodsource of water, soil and air for production for liquor production. Especially the microorganism condition issignificantly beneficial to production. The Yanghe distillery originated in the Sui and Tang Dynasties, flourished inthe Ming and Qing Dynasties. It had been sold in Jianghuai area during the period of Yong Zheng of Qing Dynasty.It has a good reputation that 'dainty taste derived from fortune spring and liquor ocean, which makes Yangherank the first place in Jianghuai area. Shuanggou alongside Yanghe has been praised as the origin of Chinesenatural liquor by domestic and overseas experts due to the discovery of drunken ape fossils in Xiacaowan.
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 Baijiu based on taste andemphasizes the value of taste. The Company strengthens the mellowness of Baijiu, puts forward the new style of
the mellow Baijiu quality, and deeply meets core demand of target consumers. It has successfully establishednew craft of mellow Baijiu production and system framework of mellowness mechanism, which caters to marketconsumption. In June 2008, 'Mellowness', a special type of Yanghe, was first written into the national standard inChina Protected Geographical Indication Product- Yanghe Daqu (Standard No. GB/T220406-2008). In October,2019, the company formulated the group standard named "Mellow Baijiu" (i.e. t/cbj2104-2019), which furtherenriched and improved the relevant standards of mellow Baijiu.
3. Talent advantage
The Company has 39 Masters of Chinese Baijiu, 78 provincial Baijiu tasting committee members and 1926technicians. The Company also has 10 national and provincial technical research and development platforms. Theobvious advantage of technical talents provides technical support for the continuous improvement of mellowBaijiu quality. In 2020, the project of "Research and Application of Key Technology and Intelligent Production ofMellowness Flavor Brewing" won the first prize of "Food Industry Science and Technology Award". In 2021, theproject of "key technology and industrialization of efficient and safe production of traditional brewing food" wonthe second prize of "science and technology progress award of the Ministry of education". The company won thesecond to fifth champion of the national liquor taster contest sponsored by China Alcoholic Drinks Association,and the representatives of the company won the top ten of the fifth national liquor taster contest, which fullydemonstrated the strong talent advantage of the company.
4. Brand advantage
The Company, as one of the eight traditional well-known Baijiu enterprises, is the only one which has two famousChinese Baijiu brands, namely Yanghe and Shuanggou, two Chinese time-honored brands, and six Chinesewell-known trademarks, including Yanghe, Shuanggou, Yanghe Spirit Classic, Zhenbaofang, Dream Blue, and Su.With a brand value of $7.09 billion, the company was selected into the "2021 Top 50 Global Spirits Brand Values”released by a world-renowned brand value research institution called Brand Finance, ranking third in the world.In 2021, the company ranked 95th in the "China's 500 Most Valuable Brands" released by World Brand Lab with abrand value of CNY64.21 billion. In 2022, the company's brand value ranked 342 in the list of "2022 Global Top500 Brand Values" released by Brand Finance.
5. Marketing network advantage
The company has a marketing team with the largest number of personnel, the latest ideas and the strongestexecution. Its marketing network has penetrated into all counties and regions in China; the high-speed channelfor distribution has been basically built, laying a solid foundation for future market expansion and categoryextension.
4. Analysis of main business
1. Overview
During the reporting period, guided by the "14th five year plan" strategic plan and closely focusing on the"12345" strategic system, the company took the initiative to seize the "Benefits" of industry structure adjustment,actively responded to the "Challenges" of competition among leading enterprises, fully promoted the majorproject of transforming old and new kinetic energy, fully implemented the key projects of improving operationquality and efficiency, and promoted the company to achieve steady progress and steady development. In 2021,the company achieved operating revenue of CNY 25.35 billion, a year-on-year increase of 20.14%; Net profitattributable to shareholders of listed companies has reached CNY7.508 billion, a year-on-year increase of 0.34%;Net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses isCNY 7.373 billion, a year-on-year increase of 30.44%.
Accelerate the transformation and upgrading of marketing methods and condense the potential energy ofreform and innovation. Adhering to the market orientation and competition orientation, focusing on thehigh-end and brand strategy, the company has built a "2 + 5 + 10" leading product layout, implemented the"First-hand Project", and completed the termination of 715 SKUs, making the product planning clearer. By deeplyadjusting the marketing structure and promoting the downward compatibility of marketing organizations, allbrands of the company have realized independent operation. The company adhered to the concept of "RelatedDistributors, Comfort Distributors, Support Distributors and Enrich Distributors", continued to improve the dealersystem, comprehensively carried out special inspections on the business environment, vigorously rectified themarket order and continuously optimized the business environment. During the reporting period, the productprices increased steadily, the cost control was accurate and efficient, and the company's management wasstandardized and orderly; Sales volume of leading products such as Dream Blue, Ocean Blue and Sky Blueincreased steadily, the national layout of Shuanggou brand achieved significant progress, and the growth ofGuijiu brand was significant.
Accelerate the optimization of the company's system and management mechanism and release the powerspontaneously generated within the company. The company adhered to the guidance of "market-oriented andefficiency-oriented",promoted institutional reform guided by encouraging aspirants,launches “the first phase ofshareholding plan” for core backbone and “14th five year-profit increment sharing plan” for employees, whichimproved the salary of employees, built a reward and punishment mechanism of "strengthening growth,incentive and binding force", strengthened the accountability mechanism based on "position, stage andassessment results", and promoted the selection mechanism of "youth, knowledge and specialization". This notonly improved the employee incentive system and welfare system, but also created a fair competitionenvironment and ignited the struggle passion of all employees for "secondary entrepreneurship".
Strengthen product quality and activate the potential of product matrix. The company adhered to the conceptof "quality first and consumer first" and spared no effort to promote the revolution of taste quality, which hassignificantly enhanced the taste of the raw liquor and successfully refreshed a variety of good products such asSky Blue, Dream Blue Crystal version and Shuanggou Zhenbaofang. The company's technical team won the topten in the fifth national liquor taster contest, and won the third place in the light industry brand and the thirdplace in the Baijiu brand reputation index, which promoted the improvement of both product strength and brandstrength. The company continued to speed up smart production and it has realized linkage and interworking inthe four fields of brewing, taste, quality and logistics. The company successfully launched financial sharingplatform and initially set up a "human effect model" on marketing, brewing and packaging. It also achievedsubstantial results in increasing revenue and reducing expenditure, encouraging all employees to participate inimprovement activities related to improving operation quality, product quality and economic benefits, so as tofurther improve the operation efficiency of the company.
Strengthen social responsibility and consolidate industrial ecological efficiency. The company adhered to theconcept of altruism and ecological supremacy, vigorously implemented the "Dream Culture" project, and activelyassumed social responsibility while realizing its own development. The company further fulfilled its responsibilityto protect the environment by adhering to energy conservation, emission reduction, recycling and greendevelopment; It continued to build a manufacturer relationship that treats manufacturers sincerely and ensuresthat transactions are fair, honest and pure, so as to further consolidate the manufacturer entrepreneurshipcommunity and business community; It strengthened communication with shareholders, investors and medias,
further enhancing mutual understanding and trust; "Yanghe Baijiu Brewing Technology" was selected into theNational Intangible Cultural Heritage List, and its intellectual property such as Fengcang Ceremony, Guyu forumand the Toupai Liquor Kaijiao Festival were deeply rooted in the hearts of the people, further expanding theinfluence of the liquor city; The company actively supported China's aerospace industry, vigorously supportedthe fight against floods and epidemics, and fully promoted the revitalization of rural areas. Public benefitactivities such as "I love Sky Blue" and "Support learning and Interpret dream public benefit activities " haveentered hundreds of cities, further enabling the company to promote the development of China and all ethnicgroups.
2. Revenues and cost of sales
(1) Breakdown of operating revenues
Unit:CNY
2021 | 2020 | YoY change | |||
Amount | As a percentage of operating revenues | Amount | As a percentage of operating revenues | ||
Total | 25,350,178,204.45 | 100% | 21,101,051,131.79 | 100% | 20.14% |
By business segment | |||||
Liquor | 24,638,674,089.57 | 97.19% | 20,334,282,442.98 | 96.37% | 21.17% |
Other | 711,504,114.88 | 2.81% | 766,768,688.81 | 3.63% | -7.21% |
By product | |||||
Baijiu | 24,440,221,392.60 | 96.41% | 20,152,435,029.41 | 95.50% | 21.28% |
Wine | 198,452,696.97 | 0.78% | 181,847,413.57 | 0.86% | 9.13% |
Other | 711,504,114.88 | 2.81% | 766,768,688.81 | 3.63% | -7.21% |
By geographical segment | |||||
Jiangsu | 11,800,507,954.17 | 46.55% | 9,990,396,422.72 | 47.35% | 18.12% |
Ex-Jiangsu | 13,549,670,250.28 | 53.45% | 11,110,654,709.07 | 52.65% | 21.95% |
By sales model | |||||
Wholesale distribution | 24,274,039,992.27 | 95.75% | 20,008,281,801.72 | 94.82% | 21.32% |
Online direct selling | 364,634,097.30 | 1.44% | 326,000,641.26 | 1.55% | 11.85% |
Other | 711,504,114.88 | 2.81% | 766,768,688.81 | 3.63% | -7.21% |
(2) Business segment, products, geographical segments or sales models contributing 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 | 24,638,674,089.57 | 5,702,863,048.47 | 76.85% | 21.17% | 8.76% | 2.64% |
By product |
Baijiu
Baijiu | 24,440,221,392.60 | 5,603,264,987.82 | 77.07% | 21.28% | 8.91% | 2.60% |
By geographical segment | ||||||
Jiangsu | 11,555,538,148.01 | 2,936,974,469.96 | 74.58% | 20.87% | 7.46% | 3.17% |
Ex-Jiangsu | 13,083,135,941.56 | 2,765,888,578.51 | 78.86% | 21.43% | 10.18% | 2.16% |
By sales mode | ||||||
Wholesale distribution | 24,274,039,992.27 | 5,650,652,950.90 | 76.72% | 21.32% | 8.71% | 5.31% |
Online direct selling | 364,634,097.30 | 52,210,097.57 | 85.68% | 11.85% | 14.00% | 8.98% |
Under the circumstances that the statistical standards for the Company’s main business data adjusted in thereporting period, the Company’s main business data in the current one year is calculated based on adjustedstatistical standards at the end of the reporting period.
□Applicable √ N/A
(3) Whether revenue from physical sales is higher than service revenue
√Applicable □ N/A
By business segment | Item | Unit | 2021 | 2020 | YoY change |
Baijiu | Sales volume | Ton | 184,001.07 | 155,757.37 | 18.13% |
Production volume | Ton | 204,331.95 | 161,498.22 | 26.52% | |
Inventory volume | Ton | 44,228.48 | 23,897.6 | 85.08% | |
Wine | Sales volume | Ton | 2,654.55 | 3,202.27 | -17.10% |
Production volume | Ton | 2,856.66 | 2,985.04 | -4.30% | |
Inventory volume | ton | 629.13 | 427.02 | 47.33% |
Reasons for any over 30% YoY changes in the data above.
√ Applicable□N/A
At the end of the reporting period, the inventory of Baijiu and red wine increased significantly, mainly due to theincrease of the dealer's order plan at the end of the year, which led the company to increase its inventory tomeet the market demand.
(4) Execution of significant sales contracts and significant purchase contracts in the reporting period
□Applicable √ N/A
(5) Breakdown of cost of sales
By business and product segment
Unit:CNY
By business segment | Item | 2021 | 2020 | YoY change | ||
Amount | As a percentage of cost of sales | Amount | As a percentage of cost of sales | |||
Liquor | 5,702,863,048.47 | 91.17% | 5,243,536,119.11 | 89.60% | 8.76% |
Unit:CNY
By productsegment
By product segment | Item | 2021 | 2020 | YoY change | ||
Amount | As a percentage of cost of sales | Amount | As a percentage of cost of sales | |||
Liquor | Direct materials | 4,128,993,712.95 | 66.01% | 3,831,187,362.53 | 65.47% | 7.77% |
Liquor | Direct labor | 1,085,084,143.74 | 17.35% | 902,098,885.05 | 15.42% | 20.28% |
Liquor | Fuels and energy | 235,359,439.08 | 3.76% | 212,167,471.34 | 3.63% | 10.93% |
Liquor | Manufacturing overhead | 253,425,752.70 | 4.05% | 298,082,400.19 | 5.09% | -14.98% |
Note: Nil
(6) Changes in the scope of the consolidated financial statements for the reporting period
√Applicable □ N/A
Establishment of subsidiaries
(1) In March 2021, Jiangsu Shuanggou Liquor Co., Ltd., a holding subsidiary, invested CNY 100 million toestablish Jiangsu Shuanggou Liquor Sales Co., Ltd., accounting for 100% of its registered capital. It wasincluded in the consolidated financial statements from March 2021.
(2) In April 2021, the company and Suqian Industrial Development Group Co., Ltd. jointly invested 20 millionyuan to establish Jiangsu jiushang Internet Technology Co., Ltd., of which the company invested CNY
10.2 million, accounting for 51% of its registered capital; Suqian Industrial Development Group Co., Ltd.invested CNY 9.8 million, accounting for 49% of its registered capital. It was included in the consolidatedfinancial statements from April 2021.
(3) In July 2021, the company subscribed CNY 50 million to establish Jiangsu Yanghe Cultural Tourism Co.,Ltd., accounting for 100% of its registered capital. It was included the consolidation scope of theconsolidated financial statements from July 2021.
(4) In July 2021, the holding subsidiary Jiangsu Yanghe Cultural Tourism Co., Ltd. and Suqian Cultural
Tourism Development Group Co., Ltd. jointly invested 20 million yuan to establish Jiangsu YangheCultural Tourism Operation Co., Ltd., of which Jiangsu Yanghe Cultural Tourism Co., Ltd. invested CNY 16million, accounting for 80.00% of its registered capital; Suqian Cultural Tourism Development Group Co.,Ltd. invested CNY 4 million, accounting for 20.00% of its registered capital. It was included in theconsolidated financial statements from July 2021.
(5) In November 2021, the company subscribed CNY 24 million to establish Siyang Tianlan Packaging ServiceCo., Ltd., accounting for 100% of its registered capital. It was included in the consolidated financialstatements from November 2021.
(7) Major changes in the business, products or services in the reporting period
□Applicable √ N/A
(8) Main customers and suppliers
Sales to major customers of the Company
Total sales from top five customers(CNY) | 1,083,788,758.68 |
Total sales from top five customers as apercentage of the total sales
Total sales from top five customers as a percentage of the total sales | 4.28% |
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 | 391,560,636.83 | 1.54% |
2 | Customer B | 226,967,130.43 | 0.90% |
3 | Customer C | 158,525,736.01 | 0.63% |
4 | Customer D | 156,335,302.56 | 0.62% |
5 | Customer E | 150,399,952.85 | 0.59% |
Total | -- | 1,083,788,758.68 | 4.28% |
Other information on major customers
□Applicable √ N/A
Major suppliers of the Company
Total purchasefrom top five suppliers(CNY) | 1,575,004,211.01 |
Total purchasefrom top five suppliers as a percentage of the total sales | 23.41% |
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 | 572,738,355.02 | 8.51% |
2 | Supplier B | 299,940,289.47 | 4.46% |
3 | Supplier C | 253,742,730.34 | 3.77% |
4 | Supplier D | 229,629,656.86 | 3.41% |
5 | Supplier E | 218,953,179.32 | 3.26% |
Total | -- | 1,575,004,211.01 | 23.41% |
Other information on major suppliers
□Applicable √ N/A
3. Expense
Unit:CNY
2021 | 2020 | YoY change | Reason for any significant change | |
Selling and distribution expenses | 3,544,364,889.54 | 2,603,804,157.78 | 36.12% | The sales revenue increased in the current period, the salary of sales staff increased, and the sales expenses such as payroll, |
promotion expenses and travelexpenses increased accordingly.
promotion expenses and travel expenses increased accordingly. | ||||
General and administrative expenses | 1,830,080,139.18 | 1,729,080,201.93 | 5.84% | |
Finance expenses | -399,145,509.96 | -87,234,764.39 | -357.55% | The amount of current deposits increased significantly, which led to the increase of interest income and the decrease of financial expenses. |
R&D expenses | 258,458,102.63 | 260,094,291.03 | -0.63% |
The company shall comply with the disclosure requirements of food and wine manufacturing businesses in SelfRegulatory Guidelines for Listed Companies in Shenzhen Stock Exchange No. 3 - Industry Information DisclosureThe 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 andpromotionexpense
Advertising and promotion expense | 191,182.70 | 53.94% | 141,109.00 | 54.19% | 35.49% |
Payroll | 106,584.47 | 30.07% | 64,627.10 | 24.82% | 64.92% |
Travel expense | 39,043.27 | 11.02% | 35,343.47 | 13.57% | 10.47% |
Labor expense
Labor expense | 8,872.30 | 2.50% | 11,797.58 | 4.53% | -24.80% |
E-commerce expense | 3,780.13 | 1.07% | 2,413.08 | 0.93% | 56.65% |
Other expense | 4,973.62 | 1.40% | 5,090.17 | 1.95% | -2.29% |
Subtotal
Subtotal | 354,436.49 | 100.00% | 260,380.42 | 100.00% | 36.12% |
Analysis of changes:
(1) Advertising and promotion expenses in this period increased by 35.49% over the same period of last year,mainly due to the growth of sales revenue and the corresponding increase of promotion expenses.
(2) Payroll in this period increased by 64.92% over the same period of last year, mainly due to the increase insales revenue in this period, the increase in the salary of employees in the sales department and theincrease in the number of employees, resulting in the increase in payroll.
(3) The amount of E-commerce expenses in this period increased by 56.65% over the same period of last year,mainly due to the increase in online sales in this period and the corresponding increase in E-commerceexpenses.
4. R&D input
√Applicable □ N/A
Name of main R & D projects | Purpose | Progress | Objectives to be achieved | Expected impact on future development |
IntelligentBrewing Project
Intelligent Brewing Project | Establish a standardized production system to realize digital and intelligent production. | The output and efficiency have reached the standard in September 2021 | 1. To build industry-leading digital and automatic production workshops; 2. To realize the data tracing of the whole brewing process, and make the brewing production more visible, controllable and analyzable. | 1. Make the production process standardized and accurate, and make the product quality more stable. 2. Greatly improve production efficiency and work efficiency, so as to achieve energy conservation and emission reduction more effectively |
Research on functional yeast based on flavor orientation | Improving the application of functional yeast in brewing | Successfully popularized and applied in September 2021 | 1. To deeply study the biochemical functions of yeast, produce biological functional yeast with the functions of scarification, fermentation, aroma generation or flavor production. 2. To clarify the influence of yeast on the flavor of Mianrou Baijiu, and to construct functional microbial community related to the flavor system. | Constantly enrich the application results of microorganisms in the brewing process, which has reference significance for the further research and application of Baijiu flavor. |
Research on the classification method of raw liquor based on consumption and research on the matching of taste | Establish a market-oriented raw liquor classification model and a model for matching the taste demand of Baijiu | Successfully established in May 2021 | To formulate the classification standards of various types of raw liquor and the calculation standards and models of resource demand. | Make the quality of all grades of raw liquor and the quality of all series of Baijiu better match the market demand. |
Information about R&D personnel
2021 | 2020 | YoY change | |
Number of R&D personnel | 575 | 549 | 4.74% |
R&D personnel as a percentage in total employees | 3.20% | 3.47% | -0.27% |
Educational background of R & D personnel | —— | —— | —— |
Bachelor degree | 156 | 159 | -1.89% |
Master degree | 54 | 57 | -5.26% |
Age of R & D personnel | —— | —— | —— |
Under 30
Under 30 | 58 | 77 | -24.68% |
Between 30 and 40 | 340 | 333 | 2.10% |
Information about R&D input
2021 | 2020 | YoY change | |
R&D input (CNY) | 270,723,001.71 | 269,360,145.63 | 0.51% |
R&D input as a percentage in operating revenues | 1.07% | 1.28% | -0.21% |
Capitalized R&D input (CNY | 12,264,899.08 | 9,265,854.60 | 32.37% |
Capitalized R&D input percentage in total R&D input | 4.53% | 3.44% | 1.09% |
Reasons and effects of YoY change in the composition of R & D personnel.
□Applicable √ N/A
Reasons for any significant YoY change in the ratio of the R&D input to the operating revenues.
□Applicable √ N/A
Reasons for any significant YoY change in the ratio of the R&D input to the operating revenues.
□Applicable √ N/A
5. Cash flow
Unit:CNY
Item | 2021 | 2020 | YoY change |
Subtotal of cash inflows from operating activities | 37,538,099,673.95 | 21,900,973,449.03 | 71.40% |
Subtotal of cash outflows from operating activities | 22,219,934,193.42 | 17,922,182,613.23 | 23.98% |
Net cash flows from operating activities | 15,318,165,480.53 | 3,978,790,835.80 | 285.00% |
Subtotal of cash inflows from investing activities | 28,170,298,911.57 | 30,896,999,982.51 | -8.83% |
Subtotal of cash outflows from investing activities | 26,333,634,597.28 | 26,424,165,197.95 | -0.34% |
Net cash flows from investing activities | 1,836,664,314.29 | 4,472,834,784.56 | -58.94% |
Subtotal of cash inflows from financing activities | 950,750,000.00 | ||
Subtotal of cash outflows from financing activities | 4,498,567,810.77 | 5,504,913,990.79 | -18.28% |
Net cash flows from financing activities | -3,547,817,810.77 | -5,504,913,990.79 | 35.55% |
Net increase in cash and cash equivalents | 13,603,817,188.08 | 2,943,041,513.62 | 362.24% |
Explanation of why the data above varied significantly.
√ Applicable □ N/A
(1) The cash inflow from operating activities in the current period increased by 71.40% over the previous period,mainly due to the increase in sales revenue and advance on sales in the current period.
(2) The net cash flow from operating activities in the current period increased by 285.00% over the previousperiod, mainly due to the increase of sales revenue and advance on sales in the current period, and theincrease of cash inflow from operating activities was greater than that of cash outflow from operatingactivities.
(3) The net cash flow from investment activities in the current period decreased by 58.94% compared with theprevious period, mainly due to the decrease of cash inflow from investment activities in the current period.
(4) The net cash flow from financing activities in the current period increased by 35.55% over the previousperiod, mainly due to the increase of cash inflow from financing activities and the decrease of cash outflowfrom financing activities in the current period.
(5) The net increase in cash and cash equivalents in the current period increased by 362.24% over the previousperiod, mainly due to the significant increase in the net cash flow from operating activities in the currentperiod.The significant difference between the net cash flow and net profit from operating activities in the current periodis due to the substantial increase in contract liabilities at the end of the period
√Applicable □ N/A
5. Analysis of non-core business
√Applicable □ N/A
Unit:CNY
Amount | As a percentage of total profits | Reasons | Sustainability | |
Investment income | 900,613,478.22 | 9.05% | Mainly due to the investment income generated by wealth management products and equity investment | No |
Changes in fair value | -721,212,806.81 | -7.25% | Mainly due to changes in fair value of financial assets held for trading | No |
Asset impairment | -7,175,293.45 | -0.07% | Mainly due to provision for stock obsolescence | No |
Non-operating income | 20,718,383.00 | 0.21% | Mainly due to compensation and liquidated damages income | No |
Non-operating expenses | 63,220,053.35 | 0.64% | Mainly due to donation expenses and losses from retirement of fixed assets | No |
6. Analysis of assets and liabilities
1. Significant changes of asset items
Unit:CNY
As at the end of 2021 | As at the beginning of 2021 | 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 | 20,955,831,010.12 | 30.91% | 7,243,186,362.29 | 13.45% | 17.46% | The net cash flow generated from operating activities in the current period increased significantly, and the deposits increased accordingly. |
Accounts receivable | 1,247,949.91 | 4,225,230.90 | 0.01% | -0.01% | ||
Inventories | 16,803,093,441.81 | 24.78% | 14,852,694,146.30 | 27.57% | -2.79% | |
Long-term equity investments | 32,743,397.31 | 0.05% | 29,528,377.16 | 0.05% | 0.00% | |
Fixed assets | 6,276,466,308.05 | 9.26% | 6,882,953,634.34 | 12.78% | -3.52% | |
Construction in progress | 525,497,000.26 | 0.78% | 223,468,482.24 | 0.41% | 0.37% | |
Right-of-use asset | 19,610,113.75 | 0.03% | 8,610,167.63 | 0.02% | 0.01% | |
Contract liability | 15,804,521,430.17 | 23.31% | 8,801,346,891.32 | 16.34% | 6.97% | |
Long-term borrowings | 36,360.00 | 0.00% | 36,360.00 | 0.00% | 0.00% | |
Lease Liabilities | 10,729,824.19 | 0.02% | 6,526,252.85 | 0.01% | 0.01% | |
Financial assets held for trading | 10,953,894,328.01 | 16.16% | 14,301,978,905.17 | 26.55% | -10.39% | Due to the decrease of bank wealth management products and trust products purchased in the current period |
Other non-current financial assets | 7,635,942,149.06 | 11.26% | 6,366,958,225.81 | 11.82% | -0.56% |
The proportion of overseas assets is relatively high.
□Applicable √ N/A
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 change s | Closing balance |
Financial Assets | ||||||||
1. Financial assets held for trading (excluding derivative financial assets) | 20,668,937,130.98 | -721,212,806.81 | 25,910,110,341.89 | 27,266,561,244.92 | -1,436,944.07 | 18,589,836,477.07 | ||
Total | 20,668,937,130.98 | -721,212,806.81 | 25,910,110,341.89 | 27,266,561,244.92 | -1,436,944.07 | 18,589,836,477.07 | ||
Financial liabilities | 0.00 | 0.00 |
Other changesNoWhether measurement attribution of main assets changed significantly during this period
□Applicable √ N/A
3. Restricted asset rights as of the end of this reporting period
No
7. Investment
1. Total investment
√Applicable □ N/A
Investment made in the reporting period (CNY) | Investment made in the prior year (CNY) | YoY change |
3,840,110,341.89 | 2,204,658,425.17 | 74.18% |
2. Significant equity investment made in the reporting period
□Applicable √ N/A
3. Significant non-equity investment ongoing in the reporting period
□Applicable √ N/A
4. Investment in financial assets
√Applicable □ N/A
(1) Securities investment
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 |
Other | Nil | Shanghai Yunfeng Xincheng Investment Center (L.P.) | 1,252,231,763.94 | Fair value | 1,280,000,000.00 | 27,768,236.06 | 1,252,231,763.94 | Other Non-current financial assets | Owned Fund | ||||
Domestic and foreign stocks | 601696 | BOCI Securities | 300,000,000.00 | Fair value | 1,748,210,516.99 | -686,368,417.39 | 7,581,388.92 | 1,061,842,099.60 | Other Non-current financial assets | Owned Fund | |||
Other | Nil | CHINA MINSHENG TRUST Co., Ltd. | 650,000,000.00 | Fair value | -65,000,000.00 | 650,000,000.00 | 585,000,000.00 | Other Non-current financial assets | Owned Fund | ||||
Other | Nil | Pan Mao (Shanghai) Investment Center (L.P.) | 276,185,376.22 | Fair value | 367,752,505.44 | 12,007,934.41 | 18,849,243.44 | 41,905,223.80 | 360,911,196.41 | Other Non-current financial assets | Owned Fund | ||
Other | Nil | Lianchu Reserve Securities Co., Ltd. | 330,000,000.00 | Fair value | 222,147,671.83 | 107,852,328.17 | 330,000,000.00 | Other Non-current financial assets | Owned Fund | ||||
Other | Nil | CICC Jiatai Phase II (Tianjin) Equity Investment Fund Partnership (L.P.) | 160,801,819.08 | Fair value | 229,114,922.40 | 136,863,367.24 | 64,445,934.03 | 301,532,355.61 | Other Non-current financial assets | Owned Fund | |||
Other | Nil | Jinshi Kunxiang Equity Investment(H | 236,368,774.30 | Fair value | 283,677,410.32 | 38,883,912.39 | 63,631,225.70 | 258,930,097.01 | Other Non-current financial assets | Owned Fund |
angzhou)Partnership(L.P.)
angzhou)Partnership(L.P.) | |||||||||||||
Domestic and foreign stocks | VSPT | Vina San Pedro | 425,350,132.53 | Fair value | 334,393,926.45 | -96,981,815.62 | 21,609,851.26 | 237,412,110.83 | Other Non-current financial assets | Owned Fund | |||
Other | Nil | Suzhou Danqing Phase II Innovative Pharmaceutical Industry Investment Partnership (L.P.) | 181,595,937.40 | Fair value | 197,143,805.24 | 54,167,201.79 | 18,404,062.60 | 232,906,944.43 | Other Non-current financial assets | Owned Fund | |||
Other | Nil | Chongqing Trust ? Jinyang No.1 Collective Fund Trust Plan | 200,000,000.00 | Fair value | 200,470,136.99 | -42,739.73 | 15,599,999.99 | 200,427,397.26 | Financial assets held for trading | Owned Fund | |||
Other securities investments held at the end of this period | 3,287,920,072.32 | -- | 13,616,749,959.68 | -192,642,990.21 | 4,510,110,341.89 | 14,511,212,543.09 | 611,632,212.87 | 3,421,567,824.20 | -- | -- | |||
Total | 7,300,453,875.79 | -- | 17,199,660,855.34 | -691,261,218.95 | 0.00 | 6,440,110,341.89 | 14,704,311,244.92 | 698,328,676.84 | 8,242,761,789.29 | -- | -- | ||
Disclosure date of the announcement of the board of directors for the approval of securities investment | April 27, 2021 | ||||||||||||
Disclosure date of announcement of shareholders' committee for approval of securities Investment (if any) | May 27, 2021 |
(2) Derivative investments
□Applicable √ N/A
No such cases in the reporting period.
5. Use of fund-raising
□Applicable √ N/A
No such cases in the reporting period.
8. Sale of major assets and equity Interests
1. Sale of major Assets
□Applicable √ N/A
No such cases in the reporting period
2. Sale of major equity Interests.
□Applicable √ N/A
9.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
Companyname
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 | 27,078,029,132.54 | 5,504,267,883.49 | 24,024,388,479.86 | 6,041,282,501.71 | 4,640,687,749.50 |
Jiangsu Shuanggou Distillery Stock Co., Ltd. | Subsidiary | Production and sales of Baijiu | 110,000,000.00 | 8,356,051,985.87 | 3,547,504,679.60 | 1,787,018,049.06 | 1,397,896,171.86 | 1,463,226,609.84 |
Jiangsu Shuanggou Liquor Operation Co., Ltd. | Subsidiary | Wholesaling and retailing of prepackaged food | 5,000,000.00 | 2,853,016,801.66 | 1,492,438,768.18 | 4,870,580,115.82 | 1,988,941,143.94 | 1,491,577,004.07 |
Acquisition and disposal of subsidiaries during the reporting period
√Applicable □ N/A
Subsidiary name | How subsidiary was acquired or disposed during the reporting period | Impact on overall operation and results |
Jiangsu Shuanggou Liquor Sales Co., Ltd | Establishment | Tiny |
Jiangsu Jiushang Internet Technology Co., Ltd | Establishment | Tiny |
Jiangsu Yanghe Cultural Tourism Co., Ltd | Establishment | Tiny |
Jiangsu Yanghe Cultural Tourism Operation Co., Ltd | Establishment | Tiny |
Siyang Tianlan Packaging Service | Establishment | Tiny |
Co., Ltd
10. Structured entities controlled by the Company
□Applicable √ N/A
11. Outlook for the future development of the Company
(1) Development strategy
Looking into the 14th Five-Year Period, Yanghe will adhere to the central idea of focusing on costumers, twofamous brands and brand diversification, and take attaching importance to quality, brand, culture and innovationas the leading ideology, to build the "12345" strategic system, to create a wave leading Yanghe and a surgingpower Shuanggou. The company will build a leading Yanghe and an energetic Shuanggou, and achieves a morebalanced, high-quality and efficient development. Yanghe will become a Chinese flavor that Chinese are proud ofand a Chinese card that will be remembered by the world.
(2) Business plan
2022 is an important year for the company to accelerate development and make breakthroughs, and it is also akey year to rise to the challenge. The company will comply with the new global situation and requirements,adapt to the new normal and new challenges of the industry, create the "Second Stage" of "SecondaryEntrepreneurship" with "Product Driven, Marketing Driven, Brand Driven, Organization Driven and CulturalDriven", and realize the development pattern of "Pursue high quality while ensuring stability, Pursue sustainabledevelopment while keeping moving Forward, Pursue healthy development while maintaining good condition".The company's business goal in 2022 is to achieve a year-on-year increase of more than 15% in operatingrevenue.
1. Product driven. The company will closely follow the consumption upgrading and changes in market demand,
and strengthen the implementation of product life cycle management with the work goal of "making theproduct line clearer, focusing on leading products, promoting high-end products and making new plans forold brands"; the company will further promote the quality revolution, build a more systematic andcomprehensive technical system, speed up the operation of key construction projects such as high-end baijiustorage, continue to promote the quality of raw liquor and spare no effort to improve product quality.
2. Marketing Driven. Focusing on "the marketing headquarters is responsible for the overall planning and the
business division is responsible for the specific implementation", and through the concept of driving theorganization through business, the marketing organization can carry out business more widely andconveniently and continuously cultivate the market; The company will focus on the nationalization andhigh-end of products, promote the optimization of Yanghe product structure, and expand the increment ofShuanggou and expensive wine; the company will balance the volume and price in the Jiangsu market,optimize the product mix in markets outside Jiangsu, and expand the revenue scale of key markets in otherareas outside of Jiangsu; the company plans to strengthen the construction of business environment,improve the dealer management system, improve the operation and service level of consumers, andpromote higher quality marketing development.
3. Brand driven. The company will adhere to the "four high" principle, which means that the company occupiesa high position in terms of product occupancy, differentiation, resonance and reputation, systematicallystudy the brand construction path and operation mode, formulate the strategic direction, combat conceptand tactical measures of brand construction, achieve clear structure, clear objectives, reasonable division oflabor and accurate strategy, and effectively improve the brand influence and brand reputation. In addition,
the company will systematically study the best way and operation mode of brand construction, formulatethe strategic direction, combat concept and tactical measures of brand construction, achieve clear structure,clear objectives, reasonable division of labor and accurate strategy, and effectively improve the brandinfluence and brand reputation.
4. Organization driven. The company will strengthen the employment orientation of "survival of the fittest",adhere to the selection orientation of "youth, knowledge, specialization and nationalization", adhere to theeducation orientation of "young seedling type, afforestation type and shade type", build a "professional andpractical" organization, "learning and research" organization, "reform and innovation" organization and"honest, diligent and thrifty" organization, and build a "secondary entrepreneurship" talent team withcourage, determination and ambition.
5. Cultural driven. Guided by the "dream culture", the company will upgrade its corporate culture and carryforward the Yanghe cultural spirit with both traditional charm and contemporary value. Through thecontinuous strengthening of the company, the development of public welfare undertakings will be moredetailed and refined, so as to realize the development dream and public welfare dream of Yanghe people;the company will strengthen the sharing, integration and win-win with consumers, dealers, suppliers, mediaand capital markets, and form a strong joint force with all sectors of society to build a common dream.
(3) Risks and challenges
1. Macroeconomic uncertainty risk. At present, although China's economy tends to be stable, gradually recoversand develops in a good direction, the world economic growth continues to slow down and the internationaleconomic and political environment is unpredictable; The great pressure of economic downturn has broughtcertain risks to the development of Baijiu industry.
2. Risk of intensified market competition. At present, the overall competition in the Baijiu market is intensifying.With the continuous improvement of market concentration, the industry will gradually enter the stage ofaccelerated competition, and the competition among Baijiu enterprises will become increasingly fierce.
3. Risks caused by the outbreak of COVID-19. At present, the epidemic situation abroad has not been effectivelycontrolled, and the epidemic in China has also been breaking out in many places. There is still uncertainty risk inthe epidemic prevention and control, which will have a certain impact on the total demand and consumptionprospect of Baijiu, and then bring uncertainty to the growth of Baijiu industry.
12. Visits paid to the Company for research, communication, interview,etc. during 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 |
May 21, 2021 | Nanjing operation | Other | Other | Institutional and individual | Production, marketing, | Log Sheet of Investor Relations |
center
center | investors participating in the Company's 2020 annual results presentation online | management and finance of the company | Activities on 21 May 2021 on www.cninfo.com.c n(No:2021- 001) | |||
May 27, 2021 | Headquarter | Field survey | Institution | Shareholders and investors who participated in the on-site communication at the Company's 2020 annual shareholders' meeting | The company's development strategy, brand planning, quality improvement, marketing transformation, etc | Log Sheet of Investor Relations Activities on 27 May 2021 on www.cninfo.com.c n(No:2021- 002) |
May 28, 2021 | Headquarter | Telephone communication | Institution | 102 investors from domestic and foreign institutions such as UBS, E Fund, Huaxia Fund and Genesis | Basic information of the enterprise, future strategic planning, leading brand promotion, dividend strategy, etc | Log Sheet of Investor Relations Activities on 28 May 2021 on www.cninfo.com.c n(No:2021- 003) |
July 20, 2021 | Headquarter | Field survey | Institution | 25 investors from Shenwan Hongyuan, Huatai Securities, China Merchants Securities, Guosheng securities, Huaxia Fund, etc | Measures for enterprise transformation, advantages and problems of enterprise development, etc | Log 002304 Information on Research Activities of Yanghe Co., Ltd on www.cninfo.com.c n(No:2021- 004) |
September 23, 2021 | Headquarter | Field survey | Institution | 9 investors from | Upgrading | Log 002304 Information on |
ZheshangSecurities,Orient AssetManagement,etc
Zheshang Securities, Orient Asset Management, etc | and promotion of leading products, sales during the Mid-Autumn Festival, enterprise transformation and adjustment, etc | Research Activities of Yanghe Co., Ltd on www.cninfo.com.c n(No:2021- 005) |
Section IV CORPORATE GOVERNANCE
1. Basic Situation of Corporate Governance
The company strictly follows the "Company Law", "Securities Law" and "Governance Guidelines for ListedCompanies", "Shenzhen Stock Exchange Listing Rules", "Shenzhen Stock Exchange Listed CompaniesStandardized Operation Guidelines" and other relevant laws and regulations. Combining the actual developmentof the company, the company further improves its modern enterprise system and corporate governancestructure. During the reporting period, the overall operation of the company was standardized, and thecorporate governance situation complied with the requirements of the normative documents of the ChinaSecurities Regulatory Commission on the governance of listed companies.
1.1 Shareholders and shareholders’meetings
The responsibilities of the company's general meeting of shareholders are clear, with accurate rules ofprocedure and practical implementation. The calling, convening and deliberation procedures of the company'sgeneral meeting of shareholders comply with the relevant provisions of the Company Law, the Articles ofAssociation and the Rules of Procedure for the General Meeting of Shareholders of the Company. Allshareholders are treated equally, especially to ensure that small and medium shareholders enjoy equal statusand ensure that small and medium shareholders can sufficiently exercise its own rights. The board of directors ofthe company earnestly implemented the resolutions of the general meeting of shareholders.
1.2 Directors and Board of directors
The responsibilities of the board of directors of the company are clear, and all directors can perform theirduties conscientiously and responsibly. The board of directors of the company elects directors in strictaccordance with the selection and appointment procedures stipulated in the Company Law and the Articles ofAssociation. The board of directors of the company currently consists of 10 directors, 4 of which areindependent directors. The composition of the board of directors conforms to the requirements of laws andregulations. The board of directors of the company strictly complies with the "Company Law", "Articles ofAssociation" and other relevant regulations to regulate the deliberation and operation of the board of directors.All directors of the company can attend the board of directors in accordance with the "Procedure Rules of theBoard of Directors", "Working System for Independent Directors" and other regulations, diligently andconscientiously review each case, making scientific and reasonable decisions on major issues of the company,and earnestly safeguarding the interests of the company and the legitimate rights and interests of allshareholders. The company's board of directors consists of four professional committees, namely the strategycommittee, the nomination committee, the audit committee and the remuneration and appraisal committee.Each committee has a clear division of labor, clear powers and responsibilities, effective operation, and gives fullplay to their professional functions, providing scientific and professional opinion for the decision-making of theboard of directors.
1.3 Supervisors and Board of Supervisors
The company's board of supervisors has clear responsibilities, and all supervisors can conscientiously andresponsibly perform their duties. The board of Supervisors of the company election is in strict accordance withthe recruitment procedures stipulated in the Company Law and the Articles of Association and etc. The board of
supervisors of the company is composed of 5 supervisors, among which 2 are employees' representatives. Thecomposition of the members of the board of supervisors meets the requirements of laws and regulations. Theboard of supervisors operates in strict accordance with the company law, the company's articles and otherregulations, the supervisors can attend the board requested bythe rules of procedure of the board of supervisors,earnestly perform their duties, effectively supervising and expressing opinions on the major issues of thecompany, financial status, and how the directors and President perform. Safeguarding the legitimate rights andinterests of the company and shareholders is also the duty of the board of supervisors.
1.4 Performance appraisal and incentive and restraint mechanism
The appointment of the company's directors, supervisors and senior management personnel is open andtransparent, in line with relevant laws and regulations, and a fair and transparent management performanceevaluation standard and incentive and restraint mechanism have been established. During the reporting period,the company conducted a performance appraisal on the goals set by the executive suites in accordance with theannual business plan, and all the executive suites have conscientiously performed their duties.
1.5 Performance appraisal and incentive and restraint mechanism
The controlling shareholder of the company shall exercise the rights of the investor and take the obligations instrict accordance with the requirements of the Company Law. The company and the controlling shareholdershall separate personnel, assets and finances, with independent organization and business, accountingindependently and taking responsibilities and risks independently. During the reporting period, the controllingshareholder did not directly or indirectly interfere with the company's decision-making and business activitiesbeyond the company's general meeting of shareholders, and there was no situation where the controllingshareholder harmed the legitimate rights and interests of other shareholders of the company. There is no majorrelated transaction between the company and its controlling shareholder, there is no phenomenon that thecontrolling shareholder occupies the funds of the company, and the company does not provide guarantees forthe controlling shareholder and its subsidiaries.
1.6 Investor relations activities
The company pays great attention to the management of investor relations and actively safeguards thelegitimate rights and interests of the company's shareholders. In addition to performing information disclosureobligations diligently and honestly, the chairman, president and secretary of the board of directors maintainpositive interactions with investors by receiving investor surveys, participating in online performance briefingsand brokerage strategy meetings, etc. The securities department acting as a specialized relationshipmanagement agency, strengthens communication with investors through telephone, email, interactive andother methods, fully guaranteeing the investors' right to know, and safeguarding their legitimate rights andinterests.
1.7 Stakeholders, environmental protection, social responsibility
The company fulfills its social responsibility obligations in accordance with the requirements of socialresponsibility, fully respects and safeguards the legitimate rights and interests of relevant stakeholders, realizesthe coordination and balance of the interests of the society, government, shareholders, the company,employees and other parties, and jointly promotes the harmonious and stable development of the company.The company advocates the governance concept of ‘green brewing, ecological enterprise’, integrates ecologicaland environmental protection requirements into the company's development strategy and corporategovernance process. The company maintaining its sustainable development, while it actively participates insocial welfare undertakings and practices social responsibilities.
1.8 Information disclosure and transparency
In strict accordance with the requirements of the regulatory authorities, the company earnestly implements
the "Information Disclosure Management System", "Investor Relations Management System" and others,strengthens the management of information disclosure affairs, and earnestly fulfills its information disclosureobligations in accordance with the law, and discloses truthfully, accurately, completely, timely and fairly.information, ensuring that all shareholders have equal access to information.
1.9 Continue to improve the internal management system
The company has continuously improved its internal control system, further strengthened corporategovernance, and further promoted the company's governance level. The Company's Audit Committee conductsa comprehensive review and supervision of the Company's financial reports, the effectiveness of internalcontrols, and the rationality and effectiveness of corporate governance. As an internal audit department, thecompany's audit center conducts regular and continuous supervision and inspection for the improvement andimplementation of the internal control system, timely discovering the deficiencies of internal control and makingimprovements, ensuring the effectiveness of internal control, and improving the company's management leveland improving the risk prevention ability. Whether there is a material difference between the actual situation ofcorporate governance and laws, administrative regulations and regulations on the governance of listedcompanies issued by the China Securities Regulatory Commission9, improve and perfect the internal controlsystem construction and implementation measuresThe company continues to improve the internal control system, further strengthen corporate governance, sothat the level of corporate governance has been further improved. The audit committee of the companycomprehensively reviews and supervises the effectiveness of the company's financial reporting, internal controland corporate governance. As an internal audit unit, the company's audit center conducts routine andcontinuous supervision and inspection for the improvement and implementation of the internal control system,timely discovers and improves the deficiencies of internal control, ensures the effectiveness of internal control,and improves the company's operation and management level and risk prevention ability.
□ Yes √ No
The actual situation of corporate governance is not significantly different from laws, administrative regulationsand regulations on listed company governance issued by the CSRC.
2. Company’s Independence in Assets, Personnel, Finances, Organizations and Businessesfrom Controlling Shareholders and Actual Controller
2.1 For business aspect:The company's business structure is independent and complete, with the ability toindependently face the market and operate independently. There is no horizontal competition with thecontrolling shareholder, and the controlling shareholder does not directly or indirectly interfere with thecompany's operations.
2.2 For personnel aspect: The company has established an independent personnel and wage managementsystem, and signed a "labor contract" with employees. The chairman, president, vice president, chief financialofficer and secretary of the board of directors of the company receive remuneration from the company, but donot receive remuneration from the controlling shareholder. The directors, supervisors and senior managementof the company do not hold positions prohibited by laws and regulations in other companies with the same orsimilar business as the company.
2.3 For assets aspect: The company has a clear property relationship with the controlling shareholder, hasindependent land use rights and housing property rights, and independently registers, builds accounts, accountsand manages company assets. The controlling shareholder has not occupied or dominated the company's assetsor interfered with the company's operation and management of the assets.
2.4 For organization aspect: The company has a mature organizational system. The general meeting ofshareholders, the board of directors, the board of supervisors, the management and each functional departmentoperate independently, and a corresponding internal management and control system has been formulated, sothat the division of labor among each department is clear, and each department performs its own duties. Thecooperation with each other forms an organic whole, which ensures the legal operation of the company, andthere is no subordination relationship with the controlling shareholder's functional department.
2.5 For finance aspect: The company has a complete and independent financial institution, equipped withsufficient full-time financial accounting personnel, established an independent accounting system and financialmanagement system, and independently opened bank accounts, paid taxes, and made financial decisionsindependently. The controlling shareholder does not intervene in the financial management of the company.
3. Competition in the same industry
□ Applicable √ N/A
4. Annual general meeting and extraordinary general meeting held during the reportingperiod
4.1Shareholders' general meeting during the reporting period
Which Session
Which Session | Type | Investor Participation Ratio | Open Date | Disclose Date | Meeting Outcome |
The First Extraordinary General Meeting of Shareholders in 2021 | EGM | 75.55% | February 23, 2021 | February 24, 2021 | For details, please refer to the "Announcement on Resolutions of the First Extraordinary General Meeting of Shareholders in 2021" (Announcement No.: 2021-008) disclosed by the company in the statutory information disclosure media. |
2020 Annual General Meeting of Shareholders | AGM | 77.24% | May 27, 2021 | May 28, 2021 | For details, please refer to the "Announcement on Resolutions of the 2020 Annual General Meeting |
of Shareholders"disclosed by thecompany in thestatutoryinformationdisclosure media(AnnouncementNo.: 2021-021)
of Shareholders" disclosed by the company in the statutory information disclosure media (Announcement No.: 2021-021) | |||||
The Second Extraordinary General Meeting of Shareholders in 2021 | EGM | 61.28% | August 2, 2021 | August 3, 2021 | For details, please refer to the "Announcement on Resolutions of the Second Extraordinary General Meeting of Shareholders in 2021" (Announcement No.: 2021-032) disclosed by the company in the statutory information disclosure media. |
The Third Extraordinary General Meeting of Shareholders in 2021 | EGM | 67.68% | November 15, 2021 | November 16, 2021 | For details, please refer to the "Announcement on Resolutions of the Third Extraordinary General Meeting of Shareholders in 2021" (Announcement No.: 2021-042) disclosed by the company in the statutory information disclosure media. |
4.2 Preference shareholders with restored voting rights request to convene an extraordinary generalmeeting
□ Applicable √ N/A
5.Directors, Supervisors and Senior Managers
5.1 Basic situation
Name
Name | Position | Service status | Gender | Age | Term Start Date | Term End Date | Number of shares held at the beginning of the period (shares) | Number of Shares increased in current period (Shares) | Number of Shares decreased in current period (Shares) | Other Increase or decrease changes (shares) | Number of shares held at the end of the period (shares) | Reasons |
Zhang Liandong | Chairman | Incumbent | Male | 54 | February 23, 2021 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Zhong Yu | Vice Chair, President | Incumbent | Male | 58 | February 10, 2015 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Wang Kai | Director | Incumbent | Male | 45 | May 19, 2017 | February 23, 2024 | 2,400 | 0 | 0 | 0 | 2,400 | |
Liu Huashuang | Director, Executive President | Incumbent | Male | 52 | January 29, 2018 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Cong Xuenian | Director | Incumbent | Male | 56 | February 10, 2015 | February 23, 2024 | 2,778,291 | 0 | 0 | 0 | 2,778,291 | |
Zhou Xinhu | Director, Vice President, Chief Enginee | Incumbent | Male | 60 | February 10, 2015 | February 23, 2024 | 2,878,291 | 0 | 0 | 0 | 2,878,291 |
r
r | ||||||||||||
Zhao Shuming | Independent Director | Incumbent | Male | 70 | February 23, 2021 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Nie Yao | Independent Director | Incumbent | Male | 45 | February 23, 2021 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Lu Guoping | Independent Director | Incumbent | Male | 62 | February 23, 2021 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Mao Lingxiao | Independent Director | Incumbent | Male | 58 | February 23, 2021 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Chen Taiqing | Chairman of the Supervisory Board | Incumbent | Male | 57 | July 13, 2020 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Xu Youheng | Supervisor | Incumbent | Male | 45 | May 23, 2019 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Xu Lili | Supervisor | Incumbent | Female | 43 | February 23, 2021 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Chen Fuya | Supervisor | Incumbent | Male | 57 | July 6, 2020 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Chen Taisong | Supervisor | Incumbent | Male | 54 | February 10, 2015 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Lin Qing | Vice President | Incumbent | Female | 47 | February 10, 2015 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Zheng Bujun | Vice President | Incumbent | Male | 55 | February 10, 2015 | February 23, 2024 | 45,000 | 0 | 0 | 0 | 45,000 | |
Yin Qiuming | Vice President, CFO | Incumbent | Male | 50 | July 13, 2020 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 |
LiYuling
Li Yuling | Vice President | Incumbent | Male | 52 | July 13, 2020 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Lu Hongzhen | Board Secretary | Incumbent | Female | 44 | February 23, 2021 | February 23, 2024 | 0 | 0 | 0 | 0 | 0 | |
Wang Yao | Chairman | Former | Male | 57 | February 10, 2015 | February 23, 2021 | 30,002 | 0 | 0 | 0 | 30,002 | |
Li Minfu | Director | Former | Male | 48 | May 22, 2020 | October 18, 2021 | 0 | 0 | 0 | 0 | 0 | |
Xu Zhijian | Independent Director | Former | Male | 58 | February 10, 2015 | February 23, 2021 | 0 | 0 | 0 | 0 | 0 | |
Cai Yunqing | Independent Director | Former | Female | 70 | February 10, 2015 | February 23, 2021 | 0 | 0 | 0 | 0 | 0 | |
Ji Xueqing | Independent Director | Former | Male | 51 | February 10, 2015 | February 23, 2021 | 0 | 0 | 0 | 0 | 0 | |
Chen Tongguang | Independent Director | Former | Male | 56 | February 10, 2015 | February 23, 2021 | 0 | 0 | 0 | 0 | 0 | |
Zhou Wenqi | Supervisor | Former | Female | 56 | February 10, 2015 | February 23, 2021 | 0 | 0 | 0 | 0 | 0 | |
Fu Hongbing | Vice President | Former | Male | 60 | January 17, 2020 | January 8, 2022 | 0 | 0 | 0 | 0 | 0 | |
Total | -- | -- | -- | -- | -- | -- | 5,733,984 | 0 | 0 | 0 | 5,733,984 | -- |
During the reporting period, is there any resignation of directors and supervisors and dismissal of seniormanagers during their term of office
√ Applicable □N/A
During the reporting period, the board of directors and the board of supervisors of the company were re-elected,and Mr. Wang Yao, Mr. Xu Zhijian, Ms. Cai Yunqing, Mr. Ji Xueqing, Mr. Chen Tongguang and Ms. Zhou Wenqiresigned.During the reporting period, Mr. Li Minfu resigned as a director due to job change.
Changes in directors, supervisors and senior management of the company
√ Applicable □ N/A
Name
Name | Position | Type | Date | Reasons |
Zhang Liandong | Chairman | elected | February 23, 2021 | General election |
Zhao Shuming | Independent Director | elected | February 23, 2021 | General election |
Nie Yao | Independent Director | elected | February 23, 2021 | General election |
Lu Guoping | Independent Director | elected | February 23, 2021 | General election |
Mao Lingxiao | Independent Director | elected | February 23, 2021 | General election |
Xu Lili | Supervisor | elected | February 23, 2021 | General election |
Lu Hongzhen | Board Secretary | Appointment | February 23, 2021 | Appointment after former term expires |
Cong Xuenian | Director | Appointment and dismissal | February 23, 2021 | General election, serving as a director, no longer serving as a senior executive |
Wang Yao | Chairman | Expiry of term | February 23, 2021 | Term expires |
Xu Zhijian | Independent Director | Expiry of term | February 23, 2021 | Term expires |
Cai Yunqing | Independent Director | Expiry of term | February 23, 2021 | Term expires |
Ji Xueqing | Independent Director | Expiry of term | February 23, 2021 | Term expires |
Chen Tongguang | Independent Director | Expiry of term | February 23, 2021 | Term expires |
Zhou Wenqi | Supervisor | Expiry of term | February 23, 2021 | Term expires |
Li Minfu | Director | Outgoing | October 18, 2021 | Job changes |
Fu Hongbing | Vice President | Decruitment | January 8, 2022 | Retirement |
5.2 Situation of Employers
The professional background, main work experience and main responsibilities of the current directors,supervisors and senior management of the company
5.2.1Directors
Mr. Zhang Liandong, born in September 1968, master degree from the Party School. He successively servedas organizational officer and organizational member of the Party Committee of Zhikou Township, Suqian City,organizational member and member of the Party Committee of Sucheng Town, Sucheng District, deputy
secretary of the Party Working Committee and secretary of the Disciplinary Work Committee of Xingfu Street,Sucheng District,director of sub-district office, secretary of party Working Committee of Xiangli Street, SuchengDistrict, director of the Management Committee and deputy secretary of the Party Working Committee ofSucheng District Economic Development Zone, director of the Investment Promotion Bureau of Sucheng District,deputy district chief of Sucheng District, and member of the Standing Committee of the Sucheng DistrictCommittee, secretary of the Party Working Committee of Sucheng Economic Development Zone, deputysecretary-general of the Suqian Municipal Government, director and deputy secretary of the Party Group of theSuqian Urban Management Bureau, deputy secretary-general of the Suqian Municipal Government (sectionlevel), secretary of the Party Working Committee of the Yanghe New District of Suqian City. He is currently thecompany’s secretary and chairman of the party committee, chairman of Jiangsu Shuanggou Wine Co., Ltd.,chairman of Sujiu Group Trading Co., Ltd., and executive director of Jiangsu Shuanggou Wine Sales Co., Ltd.Mr. Zhong Yu, born in May 1964, master degree, a senior engineer, a master of Chinese liquor, and arepresentative of the 13th Jiangsu Provincial People's Congress. He successively served as the director of thetechnical department, the director of the environmental protection department, and the director of thetechnology center of Jiangsu Shuanggou Winery; the deputy chief engineer, assistant to the general manager,director of the production technology department, and director of the technology center of Jiangsu ShuanggouWine Co., Ltd., and deputy general manager of the Yanghe Co., Ltd. branch, brewing director, assistant to thepresident, vice president, general manager of Yanghe Co., Ltd. Siyang branch. He is currently the deputysecretary of the party committee, vice chairman and president of the company, and he is the general manager ofYanghe Branch as well.
Mr. Wang Kai, born in August 1977, bachelor's degree, intermediate economist. He has served as themanager of the brand department of the Marketing Center of Shanghai Tobacco Group Co., Ltd., and theassistant to the general manager of Shanghai Haiyan Logistics Development Co., Ltd. He is currently the directorof the company and the deputy general manager of Shanghai Haiyan Logistics Development Co., Ltd.Mr. Liu Huashuang, born in December 1970, MBA from Fudan University, accountant. He successively servedas director of marketing department, deputy general manager of Jiangsu Yanghe Wine Co., Ltd. and generalmanager of Yanghe Blue Classic at the same time, general manager of Jiangsu Yanghe Wine Industry Co., Ltd.,member of the Standing Committee of the company's party committee, director of strategic research, andexecutive deputy general manager, deputy secretary of the Party Committee of Jiangsu Sujiu Industry Co., Ltd., ,secretary of the Party Committee, vice chairman and chairman of Sujiu Group Trading Co., Ltd. He is currently amember of the Standing Committee of the Party Committee, director and executive president of the company,and secretary of the Party Committee of Sujiu Group Trading Co., Ltd.Mr. Cong Xuenian, born in January 1966, master's degree, senior economist. He has successively served asthe general ledger accountant and financial director of Jiangsu Yanghe Winery, the financial director and chiefaccountant of Yanghe Group, the company secretary of the board of directors, the person in charge of finance,director and vice president. He is currently a director of the company and chairman of the Jiangsu Blue AllianceCo., Ltd.Mr. Zhou Xinhu, born in August 1962, master's degree, a senior engineer, a member of the expert group ofthe Liquor Professional Committee of China Food Industry Association, China's chief sommelier, China's winecritic, and a craftsman in China's light industry. He successively served as technician, quality inspection sectionchief of Yanghe Group Co., Ltd, director of the company's storage department, deputy general manager ofJiangsu Yanghe Wine Co., Ltd., deputy chief engineer, chief engineer and vice president of the company. He iscurrently the company director, vice president, chief engineer, and chairman of Tibet Earth Third Pole Wine Co.,Ltd.
Mr. Zhao Shuming, born in December 1952, Ph.D. He has served as staff member, deputy section chief,section chief, deputy director (presiding over the work) of Nanjing University Foreign Affairs Office, assistant tothe president, then he worked as the associate professor, professor, distinguished professor, senior professor,vice dean and dean of Nanjing University Business School, Nanjing Shenghe Pharmaceutical Co., Ltd.Independent director of Industrial Co., Ltd. and independent director of JSTI Group Co., Ltd. He is currently anindependent director of the company, a senior professor/doctoral supervisor of Nanjing University, the honorarydean of the Business School, the dean of the Xingzhi Academy, and concurrently serves as the vice chairman ofthe Business Administration Professional Education Steering Committee of the Ministry of Education, the vicechairman of the China Management Modernization Research Association, and the vice president of ChinaHuman Resource Development Research Association, distinguished adjunct professor of Missouri-St. LouisUniversity, visiting professor of Drucker School of Management, Claremont Graduate University, California,lifetime honorary president of Jiangsu Human Resources Society, Lianfa, independent director of Lianfa Co., Ltd.,and Nanjing securities Co., Ltd.Mr. Nie Yao, born in June 1977, Ph.D. He has served as a visiting scholar at the Advanced Biotechnology andMedical Center of Rutgers University (State University of New Jersey), an associate professor at the School ofBioengineering, Jiangnan University, and an independent director of Jinhui Liquor Co., Ltd. He is currently anindependent director of the company, subdean and professor of the School of Bioengineering, JiangnanUniversity.Mr. Lu Guoping, born in March 1960, bachelor degree, professor of accounting, CICPA, outstanding educatorin Jiangsu Province. He has successively served as lecturer, associate professor, director of teaching and researchsection of the School of Engineering of Nanjing Agricultural University, and independent director of LangboTechnology Co., Ltd. Currently he is the independent director of Yanghe Brewery, the deputy dean, professorand master tutor of the National Wealth Auditing College of Nanjing Audit University, the lecturer of"Accounting" for Jiangsu Province Certified Public Accountant Examination, the person in charge of the nationalexcellent online open course "Advanced Financial Accounting" and the national first-class Head of theundergraduate course "Advanced Financial Accounting", part-time professor of the Online Teacher TrainingCenter of the Ministry of Education, director of Langbo Technology Co., Ltd, independent director of Huaxin NewMaterials Co., Ltd and Baosheng Co., Ltd.
Mr. Mao Lingxiao, born in January 1964, bachelor’s degree, first-class lawyer (Senior professional title). Hehas served as a staff member of the Jiangsu Provincial Department of Justice, a full-time lawyer of JiangsuInternational Economic and Trade Law Firm, a senior partner of Jiangsu Lingxiao Law Firm, a senior partner ofJiangsu Jinding Law Firm, and a senior partner and director of Jiangsu Tianzhe Law Firm. Full-time lawyer, seniorpartner and executive director of Beijing Zhongyin (Nanjing) Law Firm. He is currently an independent director ofthe company, a full-time lawyer, senior partner and chairman of the partner meeting of Beijing Haotianxinhe(Nanjing) Law Firm.
5.2.2Supervisors
Mr. Chen Taiqing, born in May 1965, holds a master degree, a senior political engineer, and a member of theCommunist Party of China. He successively served as member of the party committee, director of the companyoffice, member of the party committee of the company, director of the company office, director of the humanresources department, director of the general department, assistant to the president, and deputy generalmanager of Yanghe Branch, deputy secretary of the party committee and secretary of the disciplinary committeeof the company , secretary of the party committee and general manager of Shuanggou Wine Industry. He iscurrently the deputy secretary of the party committee, chairman of the supervisory committee and chairman ofthe labor union.
Mr. Xu Youheng, born in March 1977, master’s degree, senior political engineer and member of CommunistParty of China. He successively served as the director of the organization department, the director of the cadresupervision department, the director of the cadre education department, and the director of the office of theOrganization Department of the Suqian Municipal Party Committee, the deputy director of the office of theparty construction leading group of the Suqian Municipal Party Committee, and the deputy secretary and deputygeneral manager of the party committee of Suqian Industrial Development Group Co., Ltd. He is currently asupervisor of the company, deputy secretary of the party committee and chairman of the supervisory committeeof Suqian Industry Development Group Co., Ltd.Ms. Xu Lili, born in March 1979, bachelor's degree. She has successively served as the secretary of the YouthLeague Committee of Shanghai Jieqiang Tobacco Sugar and Wine (Group) Co., Ltd., deputy manager of themarketing department of Shanghai Jieqiang tobacco, Sugar and Wine Group, deputy general manager ofShanghai Qinzhou Trading Co., Ltd., assistant general manager of Shanghai Jieqiang Tobacco Sugar and WineGroup Distribution Center, deputy General Manager, executive deputy general manager and general manager ofShanghai Jieqiang Tobacco Sugar (Group) Chain Co., Ltd. Currently she is the company's supervisor, deputygeneral manager of Shanghai Jieqiang tobacco Sugar (Group) Co., Ltd., general manager of Shanghai JieqiangTobacco Sugar and Wine Group Dignation Co., Ltd., and general manager of Shanghai Jieqiang Food Sales Co.,Ltd.Mr. Chen Fuya, born in November 1965, bachelor's degree. He has successively served as the member of theStanding Committee of the Discipline Inspection Commission of Suqian and the director of the party style andclean government. He is currently the Deputy Secretary of the Party Committee, Secretary of the DisciplineInspection Commission, and Supervisor.Mr. Chen Taisong, born in January 1968, master’s degree. He has successively served as a member andsecretary of the Legislative Bureau of Siyang County Government, Secretary of the Office of the Siyang CountyGovernment Office, Deputy Section Chief, Section Chief, Director Assistant, Deputy Director, Siyang County Chiefof Chuancheng Town, Secretary of the Party Committee, Jiangsu Sujiu Industrial Co., Ltd. Deputy Secretary,Secretary of the Discipline Inspection Commission, Chairman of the Supervisory Board, Deputy Secretary of theDiscipline Inspection Commission, Standing Committee of the Party Committee and Organization Minister of thecompany, Deputy Secretary of the Party Committee of Sujiu Group Trading Co., Ltd., Secretary of the DisciplineInspection Commission, and Chairman of the Supervisory Board. He is currently a member of the StandingCommittee of the Party Committee, Supervisor, Chairman of Guijiu Co., Ltd.
5.2.3Executives
Mr. Zhong Yu, President of the company, the same resume as above.
Mr. Liu Huashuang, executive president of the company, the same resume as above.
Mr. Zhou Xinhu, Vice President of the Company, the same resume as above.
Ms. Lin Qing, born in May 1975, master's degree, senior accountant and certified public accountant. Shesuccessively served as deputy director of the Enterprise Division of Suqian Finance Bureau of Jiangsu Province,assistant to the director of the Municipal Price Bureau, member and deputy director of the Suqian PartyCommittee of the Municipal Development and Reform Commission, member of the Standing Committee of theParty Committee of the company, and vice president of the company. She is currently a member of the StandingCommittee of the company's party committee, vice president, head of the internal audit organization, and vicechairman of Sujiu Group Trading Co., Ltd.
Mr. Zheng Bujun, born in January 1967, MBA's degree, senior engineer. He successively served as thegeneral manager of Jiangsu Yanghe Group Co., Ltd., the general manager of Suqian State-owned Investment Co.,Ltd., the deputy general manager of Jiangsu Shuanggou Wine Co., Ltd., the procurement and logistics director of
Yanghe Co., Ltd., and the assistant to the president. He is currently a member of the standing committee of thecompany's party committee, vice president, secretary of the party committee and general manager of thecompany's Siyang branch.Mr. Yin Qiuming, born in July 1972, college's degree, auditor. He successively served as Assistant to theDirector of Audit, Director of Audit, Deputy Secretary of the Disciplinary Committee of Jiangsu Yanghe Group Co.,Ltd., Director of the Company's Management Department, Deputy General Manager of Jiangsu Yanghe Sales Co.,Ltd., Deputy General Manager, Party Committee Member, Financial Officer of Jiangsu Yanghe Wine Co., Ltd.Minister, company supervisor, deputy secretary of the Disciplinary Committee, deputy general manager of thecompany's Yanghe branch, finished product scheduling director, financial director, financial director, and generalmanager of the financial center. He is currently the vice president and CFO of the company.Mr.Li Yuling, born in December 1970, master's degree in MBA from Nanjing University, intermediateeconomist. He successively served as the assistant to the director of the supply department, the assistant to thedirector of the finance department, the deputy chief dispatcher of the general dispatching room, the director ofthe supply department, the director of the company's supply department, the assistant to the general managerof Yanghe Branch, the director of procurement and logistics, and the director of supply chain management inJiangsu Yanghe Group Co., Ltd. , Deputy Director and Office Director of the Procurement and Supply LogisticsCenter. He is currently the vice president of the company, secretary of the party committee and generalmanager of Jiangsu Shuanggou Wine Co., Ltd.Ms. Lu Hongzhen, born in October 1978, bachelor's degree,the member of the China Association for thePromotion of Democracy. She has obtained the qualification certificate for board secretary issued by ShenzhenStock Exchange. She joined Jiangsu Yanghe Group Co., Ltd. in September 2001 and served as the secretary of theoffice, deputy director of the general department, deputy director of the company office, deputy director of thesecurities department, and representative of securities affairs of Yanghe Co., Ltd. She is currently the secretaryof the company's board of directors and the general manager of the Human Resource Center, Director ofSecurities Department.Positions in shareholder corporations
√ Applicable □ N/A
Name ofemployee
Name of employee | Shareholder name | Position held in the shareholder company | Term start date | Term end date | Whether to receive remuneration allowance in the shareholder company |
Cong Xuenian | Jiangsu Blue Alliance Co., Ltd. | Chairman | March 31, 2021 | YES | |
Wang Kai | Shanghai Haiyan Logistics Development Co., Ltd. | Vice General Manager | March 1, 2017 | YES | |
Xu Lili | Shanghai Jieqiang Tobacco Sugar & Wine (Group) Co., Ltd. | Vice General Manager | April 1, 2021 | YES |
Employment in other corporations
√ Applicable □ N/A
Name of | Other corporation name | Positions | Term start | Term end date | Whether to |
employee
employee | held in other companies | date | receive remuneration allowances in other companies | ||
Zhao Shuming | Nanjing University | Senior Professor, Doctoral Supervisor | July 6, 2017 | Yes | |
Zhao Shuming | Nanjing Shenghe Pharmaceutical Co., Ltd. | Independent Director | May 11, 2015 | May 10, 2021 | Yes |
Zhao Shuming | JSTI Group Co., Ltd. | Independent Director | April 24, 2015 | September 29, 2021 | Yes |
Zhao Shuming | Nanjing Securities Co., Ltd. | Independent Director | November 15, 2018 | Yes | |
Zhao Shuming | Jiangsu Lianfa Textile Co., Ltd. | Independent Director | May 13, 2020 | Yes | |
Zhao Shuming | Jiangsu Human Resources Society | Lifetime Honorary President | September 1, 2021 | No | |
Zhao Shuming | China Human Resource Development Research Association | Deputy Chairman | September 1, 2010 | No | |
Zhao Shuming | Professional Education Steering Committee for Business Administration Disciplines of the Ministry of Education | Deputy Minister | September 1, 2013 | No | |
Zhao Shuming | China Management Modernization Research Association | Vice Director-general | November 02, 2015 | No | |
Nie Yao | Jiangnan University | Vice Dean and Professor of Bioengineering Students | June 10, 2020 | Yes | |
Lu Guoping | Nanjing Audit University | Deputy Dean and Professor of Guofu Zhongxin College | March 01, 2020 | Yes | |
Lu Guoping | CHANGZHOU LANGBO SEALING TECHNOLOGY CO., LTD. | Director | February 22, 2022 | Yes | |
Lu Guoping | Jiangsu Huaxin New Materials Co., | Independen | March 1, | Yes |
Ltd.
Ltd. | t Director | 2016 | |||
Lu Guoping | Baosheng Technology Innovation Co., Ltd. | Independent Director | May 9, 2019 | Yes | |
Lu Guoping | Changzhou Academy of Architecture and Technology Co., Ltd. | Independent Director | July 6, 2020 | Yes | |
Xu Youheng | Suqian Industry Development Group Co., Ltd. | Chairman of the Supervisory Board | October 16, 2021 | Yes | |
Xu Lili | Shanghai Jieqiang Tobacco Sugar & Wine Group Distribution Co., Ltd. | General Manager | July 14, 2020 | No | |
Xu Lili | Shanghai Jieqiang Food Sales Co., Ltd. | General Manager | July 14, 2020 | No | |
Mao Lingxiao | Beijing Hylands (Nanjing) Law Firm | Full-time lawyer, senior partner, chairman of the partnership meeting | January 1, 2021 | Yes | |
Description of employment in other corporations | NO |
Penalties imposed by securities regulators on current and outgoing directors, supervisors and senior managers ofthe company in the past three years
□ Applicable √ N/A
5.3 Remuneration of directors, supervisors and senior managers
Decision-making procedures, basis for determination and actual payment of remuneration for directors,supervisors and senior managersDecision procedure: The remuneration shall be implemented based on December 29, 2008, the company's ninthmeeting of the second Board of Directors, approved ‘general manager of the trial measures for it (amended)’,January 18, 2009, the company’s first extraordinary shareholders' general meeting in 2009, approved on thecase of ‘trial measures for chairman of the board of directors of the company yearly salary (amended)’, on May27, 2021, the company's annual general meeting of shareholders approved the case of ‘adjusting the allowanceof independent directors’.Determination basis: According to the company's current business situation, reference to the regional economiclevel, industry and market level.Actual payment: Paid on time according to the corporate's performance and compensation institutions.Remuneration of directors, supervisors and senior managers during the reporting period
In 10,000 CNY
Name
Name | Position | Gender | Age | Employed or not | Total pre-tax compensation received from the company | Whether to obtain remuneration from related parties of the company |
Zhang Liandong | Chairman | Male | 54 | Incumbent | 111.87 | No |
Zhong Yu | Vice Chairman, President | Male | 58 | Incumbent | 203.29 | No |
Wang Kai | Board Director | Male | 45 | Incumbent | 0 | Yes |
Liu Huashuang | Board Director, CEO | Male | 52 | Incumbent | 177.35 | No |
Cong Xuenian | Board Director | Male | 56 | Incumbent | 78.39 | Yes |
Zhou Xinhu | Board Director,Vice President,Chief Engineer | Male | 60 | Incumbent | 151.16 | No |
Zhao Shuming | Independent Director | Male | 70 | Incumbent | 10 | No |
Nie Yao | Independent Director | Male | 45 | Incumbent | 10 | No |
Lu Guoping | Independent Director | Male | 62 | Incumbent | 10 | No |
Mao Lingxiao | Independent Director | Male | 58 | Incumbent | 10 | No |
Chen Taiqing | Chairman of the Supervisory Committee | Male | 57 | Incumbent | 149.23 | No |
Xu Youheng | Supervisor | Male | 45 | Incumbent | 0 | Yes |
Xu Lili | Supervisor | Female | 43 | Incumbent | 0 | No |
Chen Fuya | Supervisor | Male | 57 | Incumbent | 150.04 | No |
Chen Taisong | Supervisor | Male | 54 | Incumbent | 148.18 | No |
Lin Qing | Vice President | Female | 47 | Incumbent | 148.95 | No |
Zheng Bujun | Vice President | Male | 55 | Incumbent | 146.89 | No |
Yin Qiuming | Vice President,CFO | Male | 50 | Incumbent | 147.62 | No |
Li Yuling | Vice President | Male | 52 | Incumbent | 147.21 | No |
Lu Hongzhen | Secretary of the Board | Female | 44 | Incumbent | 46.04 | No |
Wang Yao | Chairman | Male | 57 | Former | 203.19 | No |
Li Minfu
Li Minfu | Board Director | Male | 48 | Former | 0 | Yes |
Xu Zhijian | Independent Director | Male | 58 | Former | 0 | No |
Cai Yunqing | Independent Director | Female | 70 | Former | 0 | No |
Ji Xueqing | Independent Director | Male | 51 | Former | 0 | No |
Chen Tongguang | Independent Director | Male | 56 | Former | 0 | No |
Zhou Wenqi | Supervisor | Female | 56 | Former | 0 | Yes |
Fu Hongbing | Vice President | Male | 60 | Former | 158.56 | No |
Total | -- | -- | -- | -- | 2,207.97 | -- |
6. Directors' performance of duties during the reporting period
6.1 The Board of Directors during the Reporting Period
Which Session | Open Date | Disclose Date | 会议决议 |
Seventeenth session of sixth directors of board resolution | January 28, 2021 | January 29, 2021 | The ‘Proposal on the General Election of the Board of Directors’ and the ‘Proposal on Holding the First Extraordinary General Meeting of Shareholders in 2021’ were reviewed and approved. For details, please refer to the "Announcement on Resolutions of the Seventeenth Session of the Sixth Board of Directors" disclosed by the company in the statutory information disclosure media (Announcement No.: 2021-001) |
First session of seventh directors of board resolution | February 23, 2021 | February 24, 2021 | Reviewed and approved the ‘Proposal on Election of the Chairman of the Company’, ‘Proposal on the Election of the Vice Chairman of the Company’, ‘Proposal on the Election of Members of the Special |
Committees of the Boardof Directors’, ‘Proposal onthe Election of Secretary ofBoard’ , ‘Proposal on theAppointment of theCompany's SeniorManagement’, ‘Proposalon the Appointment of thePerson in Charge of theCompany's Internal AuditInstitution’, ‘Proposal onthe Appointment of theCompany's SecuritiesAffairs Representative’. Fordetails, please refer to the"Announcement onResolutions of the FirstSession of the SeventhBoard of Directors’disclosed by the companyin the statutoryinformation disclosuremedia (AnnouncementNo.: 2021-010)
Committees of the Board of Directors’, ‘Proposal on the Election of Secretary of Board’ , ‘Proposal on the Appointment of the Company's Senior Management’, ‘Proposal on the Appointment of the Person in Charge of the Company's Internal Audit Institution’, ‘Proposal on the Appointment of the Company's Securities Affairs Representative’. For details, please refer to the "Announcement on Resolutions of the First Session of the Seventh Board of Directors’ disclosed by the company in the statutory information disclosure media (Announcement No.: 2021-010) | |||
Second session of seventh directors of board resolution | April 27, 2021 | April 29, 2021 | Reviewed and approved the ‘2020 Annual Work Report of the President’, ‘2020 Annual Work Report of the Board of Directors’, ‘2020 Annual Report’ and Summary, ‘2020 Annual Financial Final Report’, ‘Internal Control Self-Assessment Report’, ‘Proposal on Renewing the Appointment of Suya Jincheng Certified Public Accountants (Special General Partnership) as the Company's Audit Institution in 2021’, ‘2020 Social Responsibility Report’, ‘Proposal on Daily Connected Transactions’, |
Full Text of the ‘FirstQuarterly Report of 2021’,‘Plan on Authorizing theCompany's Managementto Use Its Own Funds toPurchase FinancialProducts at Opportunities’,‘Plan on Adjusting theAllowance of IndependentDirectors’, ‘Proposal on theEstablishment of JiangsuJiushang InternetTechnology Co., Ltd. andRelated Party Transactions’,‘Proposal on Holding the2020 Annual GeneralMeeting of Shareholders’.For details, please refer tothe "Announcement onResolutions of the SecondSession of the SeventhBoard of Directors"disclosed by the companyin the statutoryinformation disclosuremedia (AnnouncementNo.: 2021-013)
Full Text of the ‘First Quarterly Report of 2021’, ‘Plan on Authorizing the Company's Management to Use Its Own Funds to Purchase Financial Products at Opportunities’, ‘Plan on Adjusting the Allowance of Independent Directors’, ‘Proposal on the Establishment of Jiangsu Jiushang Internet Technology Co., Ltd. and Related Party Transactions’, ‘Proposal on Holding the 2020 Annual General Meeting of Shareholders’. For details, please refer to the "Announcement on Resolutions of the Second Session of the Seventh Board of Directors" disclosed by the company in the statutory information disclosure media (Announcement No.: 2021-013) | |||
Third session of seventh directors of board resolution | July 15, 2021 | July 16, 2021 | Reviewed and approved the ‘Proposal on ‘Jiangsu Yanghe Distillery Co., Ltd. Phase 1 Core Key Shareholding Plan (Draft)’ and its Summary’, ‘Proposal on the Management Measures for the Share Plan’, ‘Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's Phase 1 Core Employees Shareholding Plan’, ‘Proposal on the |
Adjustment of InternalOrganizations’, ‘Proposal ofthe Extraordinary GeneralMeeting of Shareholders’.For details, please refer tothe "Announcement onResolutions of the ThirdSession of the SeventhBoard of Directors"disclosed by the companyin the statutoryinformation disclosuremedia (AnnouncementNo.: 2021-027)
Adjustment of Internal Organizations’, ‘Proposal of the Extraordinary General Meeting of Shareholders’. For details, please refer to the "Announcement on Resolutions of the Third Session of the Seventh Board of Directors" disclosed by the company in the statutory information disclosure media (Announcement No.: 2021-027) | |||
Forth session of seventh directors of board resolution | July 23, 2021 | July 24, 2021 | The Proposal on External Donations to Support Flood Control and Disaster Relief in Henan Province was reviewed and approved. For details, please refer to the "Announcement on Resolutions of the Fourth Meeting of the Seventh Board of Directors" disclosed by the company in the statutory information disclosure media (Announcement No. 2021-030) |
Fifth session of seventh directors of board resolution | August 27, 2021 | August 28, 2021 | Reviewed and approved the full text and abstract of ‘the 2021 Semi-annual Report of the Company’. For details, please refer to the full text and abstract of the "2021 Semi-annual Report" disclosed by the company in the statutory information disclosure media |
Sixth session of seventh directors of board resolution | October 26, 2021 | October 27, 2021 | Reviewed and approved the ‘Company 2021 Third Quarterly Report’, ‘Plan on |
Changing the Company'sBusiness Scope andAmending the ‘Articles ofAssociation’’, ‘Plan onFormulating the‘Management System forRelated-partyTransactions’, ‘Proposal onthe Management Systemfor the Shares Held bySenior Management andChanges in the Company’,‘Proposal on Adjustment ofInternal Organizations’,‘Proposal on Conveningthe Third ExtraordinaryGeneral Meeting ofShareholders in 2021’. Fordetails, please refer to the‘Announcement onResolutions of the SixthSession of SeventhDirectors of Board’disclosed by the companyin the statutoryinformation disclosuremedia (AnnouncementNo.: 2021-038)
Changing the Company's Business Scope and Amending the ‘Articles of Association’’, ‘Plan on Formulating the ‘Management System for Related-party Transactions’, ‘Proposal on the Management System for the Shares Held by Senior Management and Changes in the Company’, ‘Proposal on Adjustment of Internal Organizations’, ‘Proposal on Convening the Third Extraordinary General Meeting of Shareholders in 2021’. For details, please refer to the ‘Announcement on Resolutions of the Sixth Session of Seventh Directors of Board’ disclosed by the company in the statutory information disclosure media (Announcement No.: 2021-038) | |||
Seventh session of seventh directors of board resolution | November 15, 2021 | November 16, 2021 | The ‘Proposal on External Donations’ was passed. For details, please refer to the ‘Announcement on Resolutions of the Seventh Session of Seventh Directors of Board Resolution’ disclosed by the company in the statutory information disclosure media (Announcement No.: 2021-041) |
6.2 Attendance of Directors at Board of Directors and General Meetings of Shareholders
Attendance of Directors at Board of Directors and General Meetings of Shareholders
Attendance of Directors at Board of Directors and General Meetings of Shareholders | |||||||
Name of Directors | The number of times they should attend the board of directors during the reporting period | Number of on-site board attendance | Number of board meetings by means of communication | Number of proxy attendance at the board of directors | Amounts of absences from the Board of Directors | Whether not attended two consecutive board meetings in person | Amounts of attendance at shareholder meetings |
Zhang Liandong | 7 | 7 | 0 | 0 | 0 | No | 4 |
Zhong Yu | 8 | 8 | 0 | 0 | 0 | No | 4 |
Wang Kai | 8 | 3 | 3 | 2 | 0 | No | 1 |
Liu Huashuang | 8 | 6 | 2 | 0 | 0 | No | 2 |
Cong Xuenian | 8 | 7 | 1 | 0 | 0 | No | 3 |
Zhou Xinhu | 8 | 4 | 2 | 2 | 0 | No | 3 |
Zhao Shuming | 7 | 4 | 3 | 0 | 0 | No | 2 |
Nie Yao | 7 | 4 | 2 | 1 | 0 | No | 2 |
Lu Guoping | 7 | 5 | 1 | 1 | 0 | No | 3 |
Mao Lingxiao | 7 | 3 | 2 | 2 | 0 | No | 2 |
Li Minfu | 6 | 4 | 1 | 1 | 0 | No | 2 |
Wang Yao | 1 | 1 | 0 | 0 | 0 | No | 1 |
Xu Zhijian | 1 | 1 | 0 | 0 | 0 | No | 0 |
Cai Yunqing | 1 | 1 | 0 | 0 | 0 | No | 0 |
Ji Xueqing | 1 | 1 | 0 | 0 | 0 | No | 0 |
Chen Tongguang | 1 | 1 | 0 | 0 | 0 | No | 0 |
Explanation of two consecutive absences from attending the board of directors in person
6.3 Circumstances where directors raise objections to company-related mattersWere there any objections on related issues of the Company from directors?
□ Yes √ No
During the reporting period, there is no objections on related issues of the Company from directors.
6.4 Other instructions for directors to perform their duties
Were there any suggestions from directors accepted by the Company?
√ Yes □ No
The statement on whether the director's recommendation to the company's proposal has been adopted or not
N/A
7. The special committees under the board of directors during the reporting period
Committee
name
Committee name | Members | Number of meetings held | Opening date | Content of meeting | Important comments and suggestions | Other performance of duties | Specific circumstances of the objection (if any) |
Strategy Committee | Zhang Liandong, Li Minfu, Zhong Yu, Zhao Shuming, Liu Huashuang | 1 | April 26, 2021 | Pre-review of the work report of the board of directors in 2020& the company's future development plan | |||
Nomination Committee | Nie Yao, Zhang Liandong, Mao Lingxiao | 1 | February 23, 2021 | Nominate senior management candidates and conduct qualification review | |||
Remuneration and Appraisal Committee | Zhao Shuming, Nie Yao, Cong Xuenian | 1 | April 26, 2021 | Check the performance of directors, supervisors and senior executives and the remuneration system in 2020 | |||
Audit Committee | Lu Guoping, Cong Xuenian, Mao Lingxiao | 5 | February 23, 2021 | 2020 annual report audit kick-off meeting& review the candidate for the person in charge of |
internalaudit
internal audit | ||||
April 23, 2021 | Check the internal audit work in the first quarter of 2021& pass the "2020 Annual Internal Control Self-Assessment Report"& re-appoint the audit institution& check the preparation of the 2020 annual report and the first quarter of 2021 report | |||
August 23, 2021 | Check the 2021 semi-annual internal audit work& check the preparation of the 2021 semi-annual report | |||
October 21, 2021 | Check the internal audit work for the third quarter of 2021& check the preparation of the report |
for the thirdquarter of2021
for the third quarter of 2021 | ||||
December 29, 2021 | Check the internal audit work in 2021 |
7. Performance of Duties by the Supervisory Committee
Were there any risks to the Company identified by Board of Supervisors when performing itsduties during the reporting period?
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.
9. Staff in the Company
9.1 Statistics of Employees, Professional Structure of the Staff, and Educational Background
Number of on-the-job employees of the parent company at the end of the reporting period (person) | 8,562 |
Number of on-the-job employees of major subsidiaries at the end of the reporting period (person) | 9,394 |
Total number of on-the-job employees at the end of the reporting period (person) | 17,956 |
The total number of employees receiving salary in the current period (person) | 17,956 |
Number of retired employees (persons) that the parent company and major subsidiaries need to pay | 0 |
Professional Composition | |
Professional Composition Category | Professional composition number (person) |
Production staff | 7,347 |
Sales staff | 6,087 |
Technical staff | 1,926 |
Financial staff | 230 |
Administration staff | 2,186 |
Internal retirees | 180 |
Total | 17,956 |
Education Level | |
Educational level category | Quantity (person) |
Master | 323 |
Bachelor | 4,023 |
College | 4,730 |
Senior High School and below
Senior High School and below | 8,880 |
Total | 17,956 |
9.2 Salary Policy
The salary of the company's employees is composed of basic salary, performance salary and profit incrementsharing award. All departments of the company implement a post-self-organization mechanism, and revised the"Administrative Measures for Post-Self-organization" to further improve the quantity, quality, efficiency andeconomic value of work. It has established quantifiable and assessable indicators to encourage employees to bespontaneous, improve their work efficiency, and improve the company's management level in order to achieve awin-win situation between the company and its employees. In 2021, the company has formulated the"Broadband Remuneration Plan for Functional Departments" and the ‘14th Five-Year Plan’ Profit IncrementSharing Plan to allow employees to share the achievements of corporate development.
9.3 Training Program
In 2021, the training work closely focused on the requirements of the company's annual meeting. Through thecombination of online and offline learning, special training will be carried out systematically, hierarchically and instages. Focusing on the training of cadre talent echelon, with the target of ‘millions’ talent training as thestarting point, orderly organize high and medium grassroots personnel to carry out training on related projectssuch as political literacy, leadership, and management ability. Centering on the reserve of professional skills,organize Yanghe Professional skills training for technical posts such as academy lecturers and wine tastingtechnicians. Around the construction of an internal learning organization, the company continuous carries outtraining activities such as reading activities and new apprenticeship training. A total of 895 training sessions wereorganized throughout the year, involving 75,267 people, resulting in 828 after-school action plans and 407results.
9.4 Labor outsourcing
□ Applicable √ N/A
10. Profit Distribution and Capitalization of Capital Reserves
Profit distribution policy in the reporting period, especially the formulation, implementation and adjustment ofcash dividend policy
√ Applicable □ N/A
On May 27, 2021, the company held the 2020 annual general meeting of shareholders, and reviewed andapproved the company's 2020 equity distribution plan. The specific plan is that based on the total equity on theequity registration date when the profit distribution plan is implemented (excluding the repurchased shares heldin the company’s special securities account for repurchase), use undistributed profits to distribute cashdividends of CNY30 (tax included) per 10 shares to all shareholders, no bonus shares, no conversion to paid-incapital.The company implements the 2020 annual equity distribution, with July 8, 2021 as the equity registration date,July 9, 2021 as the ex-rights and ex-dividend date, and the company's total share capital after excluding the9,661,310 repurchased shares of 1,497,326,690 shares as the base, to all the shareholders. Shareholders will
receive a cash dividend of CNY 30 (tax included) for every 10 shares, with a total cash dividend of CNY4,491,980,070 (tax included).At the same time, in 2020, the company used funds of CNY1,002,128,680.79 to implement share repurchase.
Special explanation of cash dividend policy
Special explanation of cash dividend policy | |
Whether it complies with the provisions of the company's articles of association or the requirements of the resolution of the shareholders' meeting | Yes |
Whether the dividend standard and ratio are explicit and clear | Yes |
Whether the relevant decision-making procedures and mechanisms are complete | Yes |
Whether the independent directors performed their duties and played their roles | Yes |
Whether minority shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests are fully protected | Yes |
If the cash dividend policy is adjusted or changed, whether the conditions and procedures are compliant and transparent | The company's cash dividend policy does not adjust or change |
The company was profitable during the reporting period and the parent company's profit available fordistribution to shareholders was positive, but no cash dividend distribution plan was proposed
□ Applicable √ N/A
Profit distribution and conversion of capital reserve into paid-in capital during the reporting period
√ Applicable □ N/A
Number of bonus shares for every 10 shares (shares) | 0 |
Dividends per 10 shares (CNY) (tax included) | 30.00 |
Base of shares (shares) of the distribution plan | 1,506,445,074 |
Amount of cash dividends (CNY) (tax included) | 4,519,335,222.00 |
Amount of cash dividends in other ways (such as share repurchase) (CNY) | 0.00 |
Total cash dividends (including other methods) (CNY) | 4,519,335,222 |
Distributable profit (CNY) | 27,801,336,778.06 |
Proportion of total cash dividends (including other methods) to total profit distribution | 100% |
Cash dividend situation | |
If the company's development stage is mature and there is no major capital expenditure arrangement when making profit distribution, the proportion of cash dividends in this profit distribution should be at least 80%. |
Detailed description of profit distribution or capital reserve conversion plan
Detailed description of profit distribution or capital reserve conversion plan |
As audited by Suya Jincheng Certified Public Accountants (Special General Partnership), the parent company realized a net profit of CNY 4,013,668,130.41 in 2021, and the statutory surplus reserve for the year was CNY 0.00, plus the undistributed profit at the beginning of the year of CNY 28,279,648,717.65, so after deducting the 2020 profit distribution of CNY 4,491,980,070, the profit available for distribution to shareholders this year was CNY 27,801,336,778.06. In line with the principle of not only taking into account the long-term development of the company, but also giving appropriate returns to shareholders, the company plans to use the total share capital on the equity registration date when the profit distribution plan is implemented (excluding the repurchased shares held in the company's special securities account for repurchase) as the base , using undistributed profits to distribute cash dividends of RMB 30 (tax included) for every 10 shares to all shareholders, no bonus shares, and no conversion to share capital. The profit distribution plan complies with the cash dividend policy stipulated in the Articles of Association. Assuming that the company's existing total share capital of 1,506,988,000 shares is calculated based on the 1,506,445,074 shares after deducting the 542,926 shares currently held in the company's special securities account for share repurchase, it is estimated that the company will distribute a cash dividend of CNY 4,519,335,222 (tax included). |
11. Implementation of company equity incentive plans, employee stock ownership plans orother employee incentives
√ Applicable □ N/A
11.1 Equity incentive
N/AEquity incentives obtained by the directors and senior management of the company
□ Applicable √ N/A
Evaluation mechanism and incentives for senior managersSince its establishment, the company has established an evaluation and incentive mechanism for seniormanagement personnel, and has made clear provisions in the "Trial Measures for the General Manager's AnnualSalary System (Revised Draft)". The company's evaluation and incentives for senior management are mainlyreflected in the annual remuneration. The board of directors mainly evaluates and motivates the company'ssenior management according to financial indicators, safety, quality indicators, customer satisfaction, etc. Seniormanagers implement an annual salary system. The basic part of the annual salary is paid on an average monthlybasis, and the rest is paid according to the assessment at the end of the year. If the assessment target is not met,it will not be paid. In 2021, the company's remuneration and appraisal committee reviewed the performance ofthe company's senior management in 2020 in accordance with the above system.
11.2 Implementation of employee stock ownership plans
√ Applicable □ N/A
All valid employee stock ownership plans during the reporting period
Range ofemployees
Range of employees | Number of employees | Total shares held | Changes | Proportion to the total share capital of listed companies | Funding sources for the implementation plan |
Company’s directors (excluding independent directors), supervisors, senior management personnel, and middle-level and above personnel and core backbones who are determined by the board of directors of the company and wholly-owned subsidiaries to play an important role in the company's overall performance and medium and long-term development | 4,738 | 9118384 | N/A | 0.61% | Participants’ legal remuneration, self-financing and other methods permitted by laws and regulations |
Shareholdings of Directors, Supervisors and Senior Management in the Employee Stock Ownership Plan duringthe Reporting Period
Name | Title | Number of shares held at the beginning of the reporting period | Number of shares held at the end of the reporting period | Proportion to the total share capital of listed companies |
Zhang Liandong | Chiarman | 0 | 96,404 | 0.01% |
Zhong Yu | Vice Chairman, President | 0 | 96,404 | 0.01% |
Liu Huashuang | Director, Executive President | 0 | 96,404 | 0.01% |
Zhou Xinhu | Director,Vice President,Chief Engineer | 0 | 48,202 | 0.00% |
Chen Taiqing
Chen Taiqing | Chairman of the Supervisory Board | 0 | 48,202 | 0.00% |
Chen Fuya | Supervisor | 0 | 48,202 | 0.00% |
Chen Taisong | Supervisor | 0 | 48,202 | 0.00% |
Lin Qing | Vice President | 0 | 48,202 | 0.00% |
Zheng Bujun | Vice President | 0 | 48,202 | 0.00% |
Yin Qiuming | Vice President, CFO | 0 | 48,202 | 0.00% |
Li Yuling | Vice President | 0 | 48,202 | 0.00% |
Lu Hongzhen | Secretary of Board | 0 | 19,281 | 0.00% |
Fu Hongbing | Vice President (Former) | 0 | 48,202 | 0.00% |
Changes in asset management institutions during the reporting period
□ Applicable √ N/A
Changes in equity due to disposal of shares by holders during the reporting period
□ Applicable √ N/A
The exercise of shareholders' rights during the reporting periodN/AOther relevant situations and explanations of the employee stock ownership plan during the reporting period
□ Applicable √ N/A
Members of Employee Stock Ownership Plan Management Committee Change
□ Applicable √ N/A
The financial impact of the employee stock ownership plan on the listed company during the reporting periodand related accounting treatment
√ Applicable □ N/A
Termination of employee stock ownership plans during the reporting period
□ Applicable √ N/A
Other instructions
11.3 Other employee incentives
□ Applicable √ N/A
12. Construction and implementation of internal control system during the reporting period
12.1 Construction and implementation of internal control
Internal control construction: 1. Establish a standard internal control system. The company has mainlyformulated 15 categories and 260 systems for human resources, quality and food safety, financial and auditmanagement. 2. Optimize the internal control environment of the enterprise: (1) Standardize the establishmentof the organizational structure. According to the relevant laws and regulations of China, clarify theresponsibilities, authority, conditions, rules of procedure and work procedures of the board of directors, boardof supervisors and managers to ensure that decision-making, execution and supervision are separated from eachother and form checks and balances; (2) Improve human resources policies. ① Improve the staff trainingmechanism. The company needs a strict assessment when hiring employees, select outstanding talents to join
the company, and form a system for employees on training, treatment, performance assessment and promotion;
② Improve the information and communication mechanism. The company establishes the technical platform ofthe information system, establishes a sensitive information collection and feedback system, realizes the upward,parallel or downward flow and communication of various information within the enterprise, and implements thewhole process of the entire internal control information from production, release to feedback modernmanagement; ③Establish an effective incentive mechanism. On the basis of following the fairness and relativestability of incentives and constraints, the company formulates equity incentives and mechanisms forspontaneous compensation incentives. (3) Pay attention to the construction of corporate culture: The companycontinues to build a compliance culture, organizes various offline legal trainings, and regularly pushes legalknowledge to employees through the online platform ‘Su Jiu Zhi Hui’. 3. Strengthen internal audit and internalsupervision of enterprise management. The company establishes a scientific view of internal audit culture, paysgreat attention to the organization and team building of the audit department, sets up the internal auditdepartment in accordance with the relevant regulations of China, and allocates internal auditors withprofessional competence, maintains the independence of internal audit, and makes the internal auditdepartment more independent. Besides, the internal audit has transformed from a single supervision function toa comprehensive function of supervision, evaluation, control and consultation, and fully exerted the value-addedfunction.Implementation: The Audit Committee of the company's Board of Directors comprehensively reviews andsupervises financial reports, audit plans, the effectiveness of internal controls, and the rationality andeffectiveness of corporate governance every year. It conducts self-evaluation of internal controls every year,optimizing the system and management process according to the enterprise internal and external environmentand development requirements. Furthermore, the audit department conducts spot checks and audits on keydepartments, important departments and general departments.
12.2 Details of major deficiencies in internal control discovered during the reporting period
□ Yes √ No
13. The company's management and control of subsidiaries during the reporting period
Name of thesubsidiaries
Name of the subsidiaries | Combination plan | Combination progress | Issues | Solutions | Resolve progress | Follow-up resolution plan |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
14. Internal control self-assessment report or internal control audit report
14.1 Self-evaluation Report on Internal Control
Date of disclosure of the full text of the internal control evaluation report | April 29, 2022 |
Disclosure Index of the Full Text of the Internal Control Evaluation Report | The full text of the "Self-assessment Report on Internal Control" will be disclosed on http://www.cninfo.com.cn on April 29, 2022 |
The ratio of the total assets of thecompany included in the evaluationscope to the total assets of thecompany's consolidated financialstatements
The ratio of the total assets of the company included in the evaluation scope to the total assets of the company's consolidated financial statements | 99.43% | |
The ratio of the operating income of the company included in the evaluation scope to the operating income of the company's consolidated financial statements | 99.96% | |
Defect identification standard | ||
Type | Financial report | Non-financial report |
Qualitative Criteria | (1) Signs of major deficiencies in financial reports include: i. Fraudulent conduct by the company’s directors, supervisors or senior executives; ii. Significant misstatements in the current financial statements were found, but the management failed to detect them during the operation of internal control; iii. As a result of internal control evaluation, major deficiencies have not been rectified; iv. The audit committee and internal audit institution's supervision of internal control is invalid. (2) Signs of significant deficiencies in financial reporting include: i. Failure to select and apply accounting policies in accordance with generally accepted accounting principles; ii. Failure to establish anti-fraud procedures and control measures; iii. Failure to establish corresponding accounting treatment for non-routine or special transactions iv. There are one or more deficiencies in the control over the period-end financial reporting process and there is no reasonable assurance that the prepared financial statements will achieve the true and accurate objectives. (3) General defects refer to other control defects other than the above-mentioned | The following circumstances could be identified as major defects, and other circumstances could be identified as major defects or general defects according to the degree of impact: (1) lack of democratic decision-making procedures, unscientific decision-making procedures, major mistakes which resulting in major property losses to the company; ( 2) Serious violation of national laws and regulations; (3) Lack of important business management system or systemic failure of system operation; (4) The company's major or important internal control deficiencies cannot be rectified in a timely manner; (5) The company continues or has a large number of important internal control deficiencies . |
major defects and important defects.
major defects and important defects. | ||
Quantitative standard | Major defects: Misstatement > 3% of total operating income; Misstatement > 5% of total profit; Misstatement > 2% of total assets. Important defects: 1% of total operating income < misstatement ≤ 3% of total operating income; 3% of total profit < misstatement ≤ 5% of total profit; 1% of total assets < misstatement ≤ 2% of total assets. General defects: misstatement ≤ 1% of total operating income; misstatement ≤ 3% of total profit; misstatement ≤ 1% of total assets. | Major defect: loss accounts for ≥1% of total assets. Important defects: 0.5%≤losses account for less than 1% of total assets. General defects: The proportion of loss to total assets is less than 0.5%. |
Number of major deficiencies in financial reports (pieces) | 0 | |
Number of major deficiencies in non-financial reports (pieces) | 0 | |
Number of material deficiencies in financial reports (pieces) | 0 | |
Number of material deficiencies in non-financial reports (pieces) | 0 |
14.2 Internal Control Audit Report
√ Applicable □ N/A
Deliberation Opinion Paragraph in Internal Control Audit Report | |
We believe that on December 31, 2021, Yanghe Co., Ltd. maintained effective internal control over financial reporting in all material aspects in accordance with the Basic Norms for Corporate Internal Control and relevant regulations. | |
Disclosure Situation of Internal Control Audit Report | Disclosured |
Disclosure date of the full text of the internal control audit report | April 29, 2022 |
Full text disclosure index of internal control audit report | The full text will be disclosed on http://www.cninfo.com.cn on April 29, 2022 |
Types of opinions on internal control audit reports | Standard unqualified opinion |
Whether there are material deficiencies in non-financial reporting | No |
Whether the accounting firm issued an internal control audit report with a non-standard opinion
□ Yes √No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluationreport of the board of directors
√ Yes □ No
15. Special Rectification Actions for Self-inspected Problems of Listed Companies
According to the requirements of the China Securities Regulatory Commission, the company launched a specialself-inspection activity on corporate governance. During the self-inspection, it was found that some directors,supervisors and senior executives of the company were unable to attend the general meeting of shareholders inperson due to business trips and other reasons. The company has made rectifications and urged the directors,supervisors and senior executives to attend the meeting in a timely manner before the general meeting. If thereis a situation where it is impossible to attend the meeting in person, the company would promptly notify therelevant personnel of the convening of the meeting and the deliberation of proposals after the meeting.
Section V Environmental and Social Responsibility
1. Significant environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge companies announced bythe environmental protection department
√ Yes □ No
Companyname orsubsidiary
name
Company name or subsidiary name | Names of major pollutants and characteristic pollutants | Emission method | Number of vents | Distribution of discharge outlets | Emission concentration | Implemented pollutant discharge standards | Total emissions | Total approved emissions | Excessive emissions |
Jiangsu Yanghe Distillery Co., Ltd. | Chemical Oxygen Demand, Ammonia Nitrogen, Total Phosphorus, Total Nitrogen | Indirect emissions | 1 | Longitude: 118°22′33.74″& Latitude: 33°47′26.74″ | 79.12mg/L 1.85mg/L 1.29mg/L 26.21mg/L | 650mg/L 40mg/L 5mg/L 60mg/L | 108.47 tons 2.54 tons 1.77 tons 35.93 tons | 454.7 tons /year 36 tons /year 2.07 tons /year 37.35 tons /year | None |
Jiangsu Shuanggou Distillery Stock Co., Ltd. | Chemical Oxygen Demand, Ammonia Nitrogen, Total Phosphorus, Total Nitrogen | Indirect emissions | 1 | Longitude: 118°12′07″& Latitude: 33°13′45″ | 61.08mg/L 2.41mg/L 1.92mg/L 11.72mg/L | 500mg/L 40mg/L 8mg/L 60mg/L | 47.66 tons 1.76 tons 1.43 tons 9.98 tons | 400 tons /year 32 tons /year 6.4 tons /year 48 tons /year | None |
Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch | Chemical Oxygen Demand, Ammonia Nitrogen, Total Phosphorus, Total Nitrogen | Indirect emissions | 1 | Longitude: 118°45′33.08″&Latitude: 33°42′25.70″ | 112mg/L 3.2mg/L 1.2mg/L 17mg/L | 500mg/L 60mg/L 6mg/L ≤60mg/L | 101.82 tons 2.49 tons 1.06 tons 10.54 tons | 672 tons /year 42 tons /year 5 tons /year 58.5 tons /year | None |
Guizhou | Chemical | Straight | 1 | Longitude | 35.5mg/L | 100mg/L | 1.452 tons | 2.057 tons | None |
GuijiuGroupCo., Ltd.
Guijiu Group Co., Ltd. | Oxygen Demand, Ammonia Nitrogen, Total Phosphorus, Total Nitrogen | emissions after processing | : 106°38′28″& Latitude: 26°50′31″ | 1.986mg/L 0.215mg/L 1.615mg/L | 10mg/L 20mg/L 1mg/L | 0.174 tons 0.024 tons 0.034 tons |
/year
0.308 tons
/year
0.04 tons
/year
0.8 tons
/year
Construction and operation of pollution prevention facilitiesJiangsu Yanghe Distillery Co., Ltd.:The sewage treatment station in use was completed in 2012, with a totalinvestment of 96 million Chinese yuan, covering an area of 19,000 square meters, with a designed sewagetreatment capacity of 10,000 tons per day. The sewage treatment process adopts physical treatment methodplus chemical treatment method plus anaerobic biological treatment method plus aerobic biological treatmentmethod in order to reach the treatment of high-concentration wastewater of 250 tons per hour. The emissionimplements the "Fermentation Alcohol and Liquor Industry Pollutant Emission Standard GB27631-2011" tomodify the list of indirect emission protocol standards. In 2021, CNY 30 million was invested in the operationcost of sewage treatment, of which CNY 22 million was invested in the 48,000-ton brewing capacityimprovement sewage treatment supporting project. After the sewage treatment facilities are upgraded, theremoval rate of various pollutants in sewage has been greatly improved. At the same time, the utilization rate ofbiogas resources in the anaerobic unit is more efficient. In 2021, a total of 1.3709 million tons of sewage weretreated, and the discharge concentrations of various pollutants are lower than the national discharge standards.There is also a biogas boiler room, and the biogas produced by the anaerobic fermentation of sewage treatmentis all used for combustion in the biogas boiler.
Jiangsu Shuanggou Distillery Stock Co., Ltd.:The sewage treatment station in use was completed in 2013,with a total investment of CNY 42.5 million, covering an area of 15,000 square meters, with a designed sewagetreatment capacity of 5,400 tons per day. Sewage treatment adopts anaerobic tower plus UASB plus AAO plussecondary sedimentation tank plus phosphorus removal tank treatment process, in accordance with the revisedlist of "Fermentation Alcohol and Liquor Industrial Pollutant Discharge Standard GB27631-2011", and implement"Shuanggou Town Sewage Treatment Plant Takeover Standard". In 2021, CNY 16.03 million was invested, and atotal of 730,900 tons of wastewater was treated. All the discharge concentration of various pollutants is lowerthan the national discharge standard. There is also a biogas boiler room, and the biogas produced by theanaerobic fermentation of sewage treatment is all used for combustion in the biogas boiler.
Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch:The sewage treatment station in use was completed in2015, with a total investment of CNY 50 million, covering an area of about 15,000 square meters, with adesigned sewage treatment capacity of 6,000 tons per day. The sewage treatment process adopts EGSB plusAAO plus advanced treatment technology, and implements the indirect discharge agreement standard of therevised list of "Fermentation Alcohol and Liquor Industry Pollutant Discharge Standard GB27631-2011". In 2021,a total investment of CNY 11.22 million was implemented to further improve the efficiency of environmentalprotection governance through the implementation of projects such as the transformation of the phosphorusremoval and dosing system of the sewage treatment station, the improvement of aeration equipment, and thetransformation of the slag machine. In 2021, a total of 826,700 tons of wastewater was treated, and all thedischarge concentration of various pollutants is far lower than the takeover standard. There is also a biogasboiler room, and the biogas produced by the anaerobic fermentation of sewage treatment is all used forcombustion in the biogas boiler.
Guizhou Guijiu Group Co., Ltd.:In 2021, a sewage treatment station with a daily processing capacity of 700tons was built, with a total investment of CNY 11.5 million, covering an area of about 1,980 square meters, and a400-cubic-meter sewage temporary storage tank was built with a remote-control system. The wastewaterproduced by AAO plus MBR plus ozone decolorization and disinfection plus chemical phosphorus removaltreatment process shall comply with the direct discharge standard in Table 2 of the Discharge Standard for WaterPollutants in Fermented Alcohol and Liquor Industry (GB27631-2011). The boiler adopts gas boiler, and its fuel isnatural gas.Environmental impact assessment of construction projects and other environmental protection administrativelicensesThe company and each subsidiary company's construction project environmental impact report andpollutant discharge permit and other materials are complete.Emergency plan for environmental emergenciesThe company and its subsidiaries have formulated contingency plans for environmental emergencies,among which the company has filed with the Environmental Protection Department of Jiangsu Province,Shuanggou Wine has filed with the Sihong Ecological Environment Bureau of Suqian City, the company's SiyangBranch has filed with Siyang County Ecological Environment Bureau for the record, Guijiu Company has filed withthe Guiyang Environmental Emergency Response Center.Environmental Self-Monitoring Program
The company and its subsidiaries have completed self-monitoring plans, among which the company, theShuanggou Liquor and the Siyang Branch have installed COD, ammonia nitrogen, total nitrogen, totalphosphorus, PH online monitoring instruments, and connected to the provincial and municipal data monitoringplatforms. The daily manual sampling and self-testing is conducted, and a sampling inspection by qualifiedinstitutions is entrusted by a third party every month. Guijiu Company has installed COD, ammonia nitrogen,total nitrogen, total phosphorus, PH, ss online monitoring instruments, and conducts real-time monitoring everyday, and entrusts a third-party qualified organization to take samples and spot checks every quarter.Administrative penalties for environmental issues during the reporting period
Company orsubsidiary name
Company or subsidiary name | Reason for punishment | Violation situation | Punishment result | The impact on the production and operation of listed companies | Rectification measures |
None | None | None | None | None | None |
Other environmental information that should be disclosedNoneMeasures taken to reduce carbon emissions during the reporting period and their effects
√ Applicable □ N/A
The company actively builds a green development system featuring energy conservation, emission reduction,and low-carbon development. In 2021, the company continues to strengthen the use of clean energy, uses idleroofs to implement photovoltaic power generation projects, and uses biogas in sewage to produce steam forproduction. It also vigorously develops greening and afforestation in the plant area, which can effectively coverloess, reduce dust, and beautify environment, and offsets the carbon dioxide emissions generated in theoperation process. It advocates low-carbon environmental protection, enhances the concept of green,low-carbon and healthy life for employees, and vigorously promotes energy conservation, emission reductionand green office. For other energy saving and carbon reduction content, please refer to the ‘2021 SocialResponsibility Report’ disclosed by the company.
Other environmental protection related informationNone
2. Social responsibility
The company has disclosed the "2021 Social Responsibility Report", see www.cninfo.com.cn for details.
3. The Achievements of Poverty Alleviation and Rural RevitalizationThe company has actively done a good job in consolidating and expanding the achievements of povertyalleviation and effectively connecting with the rural revitalization. Through the ‘hanging villages and contractinghouseholds’ link to help Qiuzhuang Village, Zhenglou District, Yanghe New District, Suqian. It is also responsiblefor the two villages of Dagou Village and Taiping Village in Zhenglou District, a total of 177 low-income peasanthouseholds are assisted. After continuous assistance, all the paired households have been lifted out of poverty.Qiuzhuang Village, a linked village, has built public service facilities such as a convenience service center, library,and village hospital under the assistance. The collective economic income has guaranteed stability. In 2021, inorder to further consolidate the achievements of poverty alleviation, the company continued to implement therequirements of ‘one household, one policy’ in terms of paired assistance. Through the combination of theSunshine Poverty Alleviation APP and on-site visits, the company dynamically grasped the basic situation ofassisted farmers. It establishes and improves poverty alleviation Preventive mechanism, makes overall use of the‘20 Suqian Policies for Benefiting the People’, develops new income channels through the double-levelassistance of "materials" and "wills", and enhances the internal motivation of low-income households. Thecompany donates materials and cash in total of CNY 79,000 during the year, 100% coverage of householdassistance. In terms of helping the linked villages, it assisted Qiuzhuang Village in fully mobilizing resources fromall parties, including people, property and goods, and invested another 200,000 Chinese yuan in assistance fundsto help Qiuzhuang Village expand its collective economy.In 2021, the company will actively use its industrial advantages to promote the construction of the raw grainbase in Suqian, ensure the high quality of the company's raw grain supply and demand, drive the developmentof local agriculture and vigorously promote rural revitalization at the same time. The company activelyparticipates in education and assistance, and participates in activity of Suqian City ‘making a dream come true,letting poor students go to school’, donating CNY 1 million. So far a total of CNY 13 million was donated to helppoor students realize their dreams. The company was awarded the 2021 ‘Suqian Charity Award’ and ‘'MajorActions. Dreams Aid for Students' and ‘Special Contribution Award’. In addition, the ‘Lasa Langre Wine Village’project was launched to help local economic development in Tibet through industrial support.In 2022, the company will continue to respond to the country's call for "rural revitalization", activelyimplement the enterprise spirit of ‘serving the country, serving the people and serving the region’, and continueto amplify the effectiveness of the village assistance work in accordance with the requirements of consolidatingand expanding the achievements of poverty alleviation and the effective connection of rural revitalization, andtake stronger actions to boost common prosperity and rural revitalization.For other information, please refer to the ‘2021 Social Responsibility Report’ disclosed by the company.
Section VI Significant Events
I、Performance of commitments
1、Complete and incomplete commitments of the Company and its actual controller, shareholders, relatedparties, acquirers, and other related parties for the commitments by the end of the reporting period
√ Applicable □ N/A
Commitments
Commitments | Giver of commitments | Commitment Type | Details of Commitment | Date of Commitment | Term of Commitment | Performance |
Share reform commitment | ||||||
Commitments made in the acquisition report or equity change report | ||||||
Commitments made during asset reorganization | ||||||
Commitments made at IPO or refinancing | Jiangsu Yanghe Group Co. Ltd. | Commitments on horizontal competition, related transactions, and capital occupation | 1. Commitment to avoid horizontal competition: (1) The company is not currently engaged in any business that competes with the joint-stock company. The company promises to maintain the existing business structure, and not to directly or indirectly operate with the business | August 26, 2009 | Long-term | In normal execution |
of thejoint-stockcompany thatactuallyconstitutescompetitionor mayconstitutecompetition.Any business,or newlyestablishedsubsidiariesor affiliatedenterprisesengaged intheabove-mentioned business.
(2) If the
companyviolates theabovecommitments, thejoint-stockcompany hasthe right torequest thecompany toimmediatelyterminate thebusiness ofhorizontalcompetitionandcompensatethe economicloss caused tothejoint-stockcompany. Atthe sametime, the
companyshall payliquidateddamages ofCNY 10million to thejoint-stockcompany. (3)The companypromises notto use itsstatus as thecontrollingshareholderin thejoint-stockcompany todamage thelegitimaterights andinterests ofthejoint-stockcompany,othershareholdersof thejoint-stockcompany andcreditors ofthejoint-stockcompany. ⑷This letter ofcommitmenttakes effectfrom the dateof signing andcannot berevokedwithout theconsent ofthejoint-stock
company. 2.Commitmentto reducerelated-partytransactions:
The companywill strictlyabide by therequirementsof relevantlaws,regulationsandnormativedocumentssuch as theCompanyLaw, theSecuritiesLaw, and theCode ofCorporateGovernancefor ListedCompanies,and furtherreduce andstrictlyregulate therelationshipwithjoint-stockcompanies.All kinds ofrelated-partytransactionsbetween thetwocompanies, toensure thatthe status ofthecontrollingshareholder
and actualcontroller willnot be usedto harm theinterests ofthejoint-stockcompany andothershareholdersof thejoint-stockcompany, andthat no newoccupation ofthejoint-stockcompany willoccur.
and actual controller will not be used to harm the interests of the joint-stock company and other shareholders of the joint-stock company, and that no new occupation of the joint-stock company will occur. | |||||
Jiangsu Blue Alliance Co., Ltd. | Commitments on horizontal competition, related transactions, and capital occupation | Commitment to avoid horizontal competition: 1. The company is mainly engaged in investment management, and does not operate the same or related business as the issuer. The company will not engage in the same or related business as the issuer's business, and will not harm | November 23, 2017 | Long-term | In normal execution |
the issuer'sinterests, norwill it seekillegitimatebenefits fromthe issuer; 2.If thecompanyviolates theabovecommitments, the issuerhas the rightto demandcompensation from itowing toeconomiclosses causedto the issuer,and payliquidateddamages ofCNY 5 million,and have theright torequest theacquisition ofthe businessproject at themarket priceof thebusinessproject or theestablishmentcost price(whichever islower); 3. ThiscommitmentThe book willtake effectfrom the dateof signing andcannot be
revokedwithout theconsent ofthe issuer.
revoked without the consent of the issuer. | |||||
Jiangsu Blue Alliance Co., Ltd. | Share Reduction Commitment | After the issuer's shares have been listed and traded on the stock exchange for one year, the shares transferred each year shall not exceed 25% of the total number of the issuer's shares held by the issuer, and the issuer's shares held and their changes shall be reported to the issuer in a timely manner. | November 23, 2017 | Long-term | In normal execution |
Cong Xuenian | Other commitments | As one of the directors, supervisors and senior managers of the of Jiangsu Blue Alliance Co., Ltd., I promise: 1. During the term of office of the issuer, the annual | November 23, 2017 | Long-term | In normal execution |
transfer ofBlue Allianceequity shallnot exceed25% of thetotal equityof BlueAlliance heldby me 2. If Iresign fromthe issuer, Ishall nottransfer theshares of theBlue Allianceheld by mewithin sixmonths afterresignation;
3. If I resign
from theissuer, thenumber ofsharestransferredshall notexceed 50%of the totalshares of theBlue Allianceheld by mewithin 12months of sixmonths ofresignation
transfer of Blue Alliance equity shall not exceed 25% of the total equity of Blue Alliance held by me 2. If I resign from the issuer, I shall not transfer the shares of the Blue Alliance held by me within six months after resignation; 3. If I resign from the issuer, the number of shares transferred shall not exceed 50% of the total shares of the Blue Alliance held by me within 12 months of six months of resignation | |||||
Feng Pantai | Other commitments | As one of the directors, supervisors and senior managers of the of Jiangsu Blue Alliance Co., Ltd., I promise: 1. | November 23, 2017 | January 8, 2022 | In normal execution |
During theterm of officeof the issuer,the annualtransfer ofBlue Allianceequity shallnot exceed25% of thetotal equityof BlueAlliance heldby me 2. If Iresign fromthe issuer, Ishall nottransfer theshares of theBlue Allianceheld by mewithin sixmonths afterresignation;
3. If I resign
from theissuer, thenumber ofsharestransferredshall notexceed 50%of the totalshares of theBlue Allianceheld by mewithin 12months of sixmonths ofresignation
During the term of office of the issuer, the annual transfer of Blue Alliance equity shall not exceed 25% of the total equity of Blue Alliance held by me 2. If I resign from the issuer, I shall not transfer the shares of the Blue Alliance held by me within six months after resignation; 3. If I resign from the issuer, the number of shares transferred shall not exceed 50% of the total shares of the Blue Alliance held by me within 12 months of six months of resignation | ||||||
Equity Incentive Commitment | ||||||
Other commitments made to the company's minority shareholders | ||||||
Whether the promise is fulfilled | Yes |
on time
on time | |
If the commitment is overdue and not fulfilled, the specific reasons for the failure to fulfill and the next work plan shall be explained in detail | N/A |
2、Where any profit forecast was made for any of the Company’s assets or projects and the currentreporting period is still within the forecast period, the Company shall explain whether the performance ofthe asset or project reaches the profit forecast and why:
□ Applicable √ N/A
II、Non-operating capital occupation of listed companies by controlling shareholders andother related parties
□ Applicable √ N/A
No such case during the current reporting period.
III、Illegal Provision of Guarantees for External Parties
□ Applicable √ N/A
No such case during the current reporting period.IV、Explanation of the board of directors on the latest ‘non-standard audit report’
□ Applicable √ N/A
V、Explanation Given by the Board of Directors, Supervisory Committee and IndependentDirectors (if applicable) regarding the “Non-standard Auditor’s Report” Issued by the CPAFirm for the Current Reporting Period
□ Applicable √ N/A
VI、For Changes in Accounting Policies, Accounting Estimates or Correction of SignificantAccounting Errors Compared with the Financial Report for the Prior Year
√ Applicable □ N/A
Since January 1st 2021 (the “First Adoption Date”), the Company has implemented the AccountingStandards for Business Enterprises No. 21 – Leases revised by the Ministry of Finance in 2018 (hereinafterreferred to as the“New Lease Standards”).The companydisclosed the related amount based on the cumulativeimpact of the first adoption of the New Lease Standards, without adjusting data for the comparative period.
VII、Explanation of changes in the scope of consolidated statements compared with thefinancial report of the previous year
√ Applicable □ N/A
Set up subsidiaries
(1)In March 2021, the holding subsidiary Jiangsu Shuanggou Wine Industry Co., Ltd. invested 100 millionChinese yuan to establish Jiangsu Shuanggou Wine Sales Co., Ltd., accounting for 100% of its registered capital. Itwill be included in the scope of consolidation in the consolidated financial statements from March 2021.
(2)In April 2021, the company and Suqian Industry Development Group Co., Ltd. jointly invested 20million Chinese yuan to establish Jiangsu Jiushang Internet Technology Co., Ltd., of which the companycontributed 10.20 million Chinese yuan, accounting for 51% of its registered capital, Suqian IndustryDevelopment Group Co., Ltd. contributed 9.800 million Chinese yuan, accounting for 49% of its registered capital.It will be included in the scope of consolidation in the consolidated financial statements from April 2021.
(3)In July 2021, the company subscribed to invest 50 million Chinese yuan to establish Jiangsu YangheCultural Tourism Co., Ltd., accounting for 100% of its registered capital. It will be included in the consolidationscope of the consolidated financial statements from July 2021.
(4)In July 2021, the holding subsidiary Jiangsu Yanghe Cultural Tourism Co., Ltd. and Suqian CulturalTourism Development Group Co., Ltd. jointly invested 20 million Chinese yuan to establish Jiangsu YangheCultural Tourism Operation Co., Ltd., of which Jiangsu Yanghe Cultural Tourism Co., Ltd. invested 16 millionChinese yuan, accounting for 80.00% of its registered capital, Suqian Cultural Tourism Development Group Co.,Ltd. invested 4,000,000 Chinese yuan, accounting for 20.00% of its registered capital. It will be included in theconsolidation scope of the consolidated financial statements from July 2021.
(5)In November 2021, the company subscribed for 24 million Chinese yuan to set up Siyang TianlanPackaging Service Co., Ltd., accounting for 100% of its registered capital. It will be included in the scope ofconsolidation in the consolidated financial statements from November 2021.
VIII、Engagement and Disengagement of the CPA firm
CPA firm engaged at present
Name of domestic accounting firm
Name of domestic accounting firm | Suya Jincheng CPA LLP. |
Remuneration of domestic accounting firm (10,000 Chinese yuan) | 190.8 |
Consecutive years of audit services of domestic accounting firms | 15 |
The name of the certified public accountant of the domestic accounting firm | Li Laimin, Li Yan |
Consecutive years of auditing services by certified public accountants of domestic accounting firms | Li Laimin: 2 years,Li Yan: 3years |
Whether to change the CPA firm in the current period
□ Yes √ No
Engagement of internal control audit CPA firm, financial advisor or sponsor
√ Applicable □ N/A
During the reporting period, the Company hired Suya Jincheng CPA LLP. as the internal control audit accountingfirm, and paid a total of RMB 530,000 of financial consulting fees during the period.
IX、Facing delisting after annual report disclosure
□ Applicable √ N/A
X、Bankruptcy and Restructuring
□ Applicable √ N/A
No such case during the reporting period.XI、Material Litigations and Arbitration
□ Applicable √ N/A
The Company had no material litigation or arbitration during the current reporting period.XII、Punishment and rectification
□ Applicable √ N/A
No such case during the reporting period.XIII、The integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ N/A
XIV、Significant Related-party Transactions
1.Related-party Transactions Arising from Routine Daily Operations
□ Applicable √ N/A
No such case during the reporting period.
2.Related-party Transactions regarding Purchase and Disposal of Assets or Equity
□ Applicable √ N/A
No such case during the reporting period.
3. Significant Related-party Transactions Arising from Joint Investments on External Parties
□ Applicable √ N/A
No such case during the reporting period.
4. Related Credit and Debt Transactions
□ Applicable √ N/A
No such case during the reporting period.
5. Transactions with related financial companies
□ Applicable √ N/A
No such case during the reporting period.
6. Transactions between the financial company controlled by the company and related parties
□ Applicable √ N/A
There is no deposit, loan, credit or other financial business between the financial company controlled by theCompany and its related parties.
7. Other significant related-party transactions
□ Applicable √ N/A
The company has no other significant related transactions during the reporting period.XV、Significant Contracts and Their Execution
1. Trusteeship, Contracting and Leasing
(1)Trusteeship
□ Applicable √ N/A
No such case in the reporting period.
(2)Contracting
□ Applicable √ N/A
No such case in the reporting period.
(3)Leasing
□ Applicable √ N/A
No such case in the reporting period.
2、Significant Guarantees
□ Applicable √ N/A
No such case in the reporting period.
3、Entrusting Others to Manage Cash Assets
(1)Entrusted financial management
√ Applicable □ N/A
Overview of entrusted wealth management during the reporting period
Unit: CNY10, 000
Product types
Product types | Source of funds | Amount | Outstanding balance | Amount not collected after the due date | Amount of impairment accrued owing to overdue financial management |
Bank wealth management products | Private funds | 1,032,000 | 1,032,000 | 0 | 0 |
Trust wealth management products | Private funds | 1,273,368 | 208,285.29 | 6,879.48 | 3,625.67 |
Total | 2,305,368 | 1,240,285.29 | 6,879.48 | 3,625.67 |
Specific circumstances of high-risk entrusted wealth management with a single large amount or low security andlow liquidity√ Applicable □ N/A
Unit: CNY10, 000
Trustee name | Type of Trustee (or Trustee) | Type | Amount | Sources of funds | Start date | End date | Investment direction | Remuneration determination method | Reference annualized rate of return | Expected earnings (if any) | Actual profit and loss amount during the reporting period | The actual recovery of profit and loss during the reporting period | Amount of provision for impairment (if any) | Whether it has gone through legal procedures | Is there any entrusted financial plan in the future | An overview of the matter and an index of related queries (if any) |
CITIC Trust | Trust | CITIC Trust ? Jiahe No. 118 | 9,500 | Private funds | May 29, 2020 | November 29, 2021 | Debt assets | Cash | 7.60% | 1,085.97 | 722 | 526.17 | 3,625.67 | Yes | Yes | The trust financing expires, |
EvergrandeGuiyangNewWorldAccumulativeFundTrustPlan
Evergrande Guiyang New World Accumulative Fund Trust Plan | and part of the principal and income are deferred. For details, please refer to the "Announcement on the Deferred Payment of the Expired Principal and Income of Entrusted Wealth Man |
agement"disclosedbythecompanyonDecember4,2021(AnnouncementNo.2021-044)
agement" disclosed by the company on December 4, 2021 (Announcement No. 2021-044) | ||||||||||||||||
FOTICTrust | Trust | FOTIC·Furong No. 203 Sunac Meijiang Phase II Collective Fund Trust Plan | 13,000 | Private funds | April 21, 2021 | April 21, 2022 | Debt assets | Cash | 7.70% | 1,001 | 696.59 | 666.42 | Yes | Yes | ||
CITIC Trust | Trust | CITIC Trust ? Country Garden Suyun No. 4 Finan | 8,000 | Private funds | November 25, 2020 | May 25, 2022 | Debt assets | Cash | 6.70% | 268 | 587.47 | 572.79 | Yes | Yes |
cingCollectiveFundTrustPlan
cing Collective Fund Trust Plan | ||||||||||||||||
AVIC Trust | Trust | AVIC Trust Tianqi [2020] No. 12 Pan'an Lake Ecological Town Project Loan Collective Fund Trust Plan | 14,320 | Private funds | June 19, 2020 | June 19, 2022 | Debt assets | Cash | 8.70% | 2,491.68 | 1,297.28 | 1,263.14 | 2,148 | Yes | Yes | |
Minmetals Trust | Trust | Minmetals Trust·Hengxin Gongzhu No.326-Changli Stable Zeng No.123 Accumulative Fund Trust Plan | 10,000 | Private funds | February 9, 2021 | August 9, 2022 | Debt assets | Cash | 8.00% | 1,196.71 | 710.14 | 688.22 | Yes | Yes |
MinshengTrust
Minsheng Trust | Trust | China Minsheng Trust ? Zhixin No. 1047 Baoneng Investment and Financing Project Collective Fund Trust Plan | 20,000 | Private funds | August 21, 2020 | August 21, 2022 | Debt assets | Cash | 8.90% | 3,560 | 1,780 | 887.56 | 10,000 | Yes | Yes | |
AVIC Trust | Trust | AVIC Trust Tianqi [2020] No. 408 Nanjing Shibanqiao Project Equity Investment Trust Plan | 6,000 | Private funds | September 25, 2020 | September 24, 2022 | Equity assets | Cash | 8.50% | 1,018.6 | 510 | 255.70 | 1,800 | Yes | Yes | |
Shaanxi State Investment | Trust | Shaanxi State Investment· | 4,000 | Private funds | September 24, 2020 | September 24, 2022 | Debt assets | Cash | 7.00% | 560 | 291.56 | 283.89 | Yes | Yes |
YouBondNo.
NantongHaianCollectiveFundTrustPlan
You Bond No. 28 Nantong Haian Collective Fund Trust Plan | ||||||||||||||||
AVIC Trust | Trust | AVIC Trust Tianqi [2019] No. 116 Kunming Evergrande Yunxi Mansion Trust Loan Collective Fund Trust Plan | 15,000 | Private funds | November 06, 2020 | November 06, 2022 | Debt assets | Cash | 8.00% | 2,400 | 1,216.67 | 1,216.67 | 4,500 | Yes | Yes | |
Minmetals Trust | Trust | Minmetals Trust·Hengxin Gongzhu No.431-Fengli No.223 | 20,000 | Private funds | May 14, 2021 | November 14, 2022 | Debt assets | Cash | 7.50% | 2,256.16 | 945.21 | 904.11 | 3,000 | Yes | Yes |
AccumulativeFundTrustPlan
Accumulative Fund Trust Plan | ||||||||||||||||
Jiangsu Trust | Trust | Jiangsu Trust·Fuju No. 11 Accumulative Fund Trust Plan | 4,393.94 | Private funds | January 11, 2021 | December 01, 2022 | Debt assets | Cash | 7.50% | 1,415.75 | 580.18 | 571.15 | Yes | Yes | ||
FOTIC | Trust | FOTIC·Furong No. 203 Sunac Meijiang Phase II Project Phase 3-4 | 7,000 | Private funds | June 16, 2021 | December 16, 2022 | Debt assets | Cash | 8.00% | 840.77 | 303.78 | 286.90 | Yes | Yes | ||
AVIC Trust | Trust | AVIC Trust ? Tianxin Bay Area Renewal No. 10 Collective Fund | 10,000 | Private funds | February 26, 2021 | February 26, 2023 | Equity assets | Cash | 8.50% | 1,700 | 714.93 | 691.64 | Yes | Yes |
TrustPlanPhase
Trust Plan Phase 1 | ||||||||||||||||
AVIC Trust | Trust | AVIC Trust·Tianxin Bay Area Update No. 10 Collective Fund Trust Plan Phase 2 | 10,000 | Private funds | March 01, 2021 | March 01, 2023 | Debt assets | Cash | 8.50% | 1,700 | 707.95 | 684.66 | Yes | Yes | ||
Shanghai Trust | Trust | Shanghai Trust·Hiya Debt Investment Collective Fund Trust Plan | 7,500 | Private funds | March 23, 2021 | March 23, 2023 | Debt assets | Cash | 7.00% | 1,050 | 407.05 | 261.85 | Yes | Yes | ||
Total | 158,713.94 | -- | -- | -- | -- | -- | -- | 22,544.64 | 11,470.81 | -- | 25,073.67 | -- | -- | -- |
Entrust finance expected to be failed to recover principle or other situation leading to impairment
√ Applicable □ N/A
The “CITIC Trust Jiahe No. 118 Evergrande Guiyang New World Collective Fund Trust Plan” purchased by thecompany expired, and part of the principal and income were deferred. The company announced it on DeferredPayment of Income (Announcement No.: 2021-044). Based on the principle of prudence, the company handleschanges in fair value and accrues CNY 36.2567 million for impairment. After sorting out, based on the principleof prudence, the company made a change in fair value, and accrued a depreciation amount of 214.48 millionChinese yuan, totaling CNY250.7367 million.
(2)Entrusted loan management
□ Applicable √ N/A
No such case during the reporting period
4、Other major contracts
□ Applicable √ N/A
No such case during the reporting periodXVI、Explanation of other significant matters
√ Applicable □ N/A
1、 The company indirectly holds the partnership shares of Jiangsu Jiequan Emerging Industry DevelopmentFund (Limited Partnership) by investing in Jiangsu Xinghe Investment Management Co., Ltd. and NanjingXingnahe Venture Capital Partnership (Limited Partnership). Xingnahe Partnership and Jiequan Fund havecompleted the Raised and completed the filing with the Asset Management Association of China, the filing codesare SCF515 and SCL005 respectively. For details, please refer to the "Announcement on Cooperative Investmentwith Professional Investment Institutions" (Announcement No.: 2017-021) and "Progress Announcement onCooperative Investment with Professional Investment Institutions" disclosed by the company on December 30,2017 and April 12, 2018 (Announcement No.: 2018-011).
2、Sujiu Group Jiangsu Wealth Management Co., Ltd. subscribed for the partnership shares of Suzhou DanqingPhase II Innovative Pharmaceutical Industry Investment Partnership (Limited Partnership). Danqing Phase II hascompleted the fundraising and completed the filing with the China Securities Investment Fund IndustryAssociation, the filing code is SED720. For details, please refer to the "Announcement on Cooperative Investmentwith Professional Investment Institutions" (Announcement No.: 2018-021), "About Announcement on theProgress of Cooperative Investment with Investment Institutions (Announcement No.: 2018-030),"Announcement on the Progress of Cooperative Investment with Professional Investment Institutions"(Announcement No.: 2019-004).
3、Jiangsu Yanghe Investment Management Co., Ltd. subscribed for the partnership share of Panmao (Shanghai)Investment Center (Limited Partnership). Panmao Investment has completed the fundraising and completed thefiling with the Asset Management Association of China, the filing code is SED720. For details, please refer to the"Announcement on Cooperative Investment with Professional Investment Institutions" disclosed by the companyon June 22, 2018 (announcement number: 2018-025).
4、Jiangsu Yanghe Investment Management Co., Ltd. subscribed for the partnership shares of Jiangsu ZijinHongyun Health Industry Investment Partnership (Limited Partnership), Suqian Yida Industrial Venture CapitalFund (Limited Partnership), and Hunan Huaye Tiancheng Venture Capital Partnership (Limited Partnership). ZijinHongyun, Suqian Yida and Huaye Tiancheng have completed the fundraising and completed the filing with theAsset Management Association of China. The filing codes are SGA436, SGV275 and SGW727 respectively. Fordetails, please refer to the "Announcement on Cooperative Investment with Professional InvestmentInstitutions" (Announcement No.: 2019-002) disclosed by the company on March 28, 2019, and "AboutParticipating in Investment in Suqian Yida Industrial Venture Capital" disclosed on April 30, 2019 Announcementon Funds and Related Party Transactions” (Announcement No.: 2019-012), and “Announcement on Subscriptionof Hunan Huaye Tiancheng Venture Capital Fund” disclosed on September 6, 2019 (Announcement No.:
2019-021).
5、Jiangsu Yanghe Investment Management Co., Ltd. indirectly holds the partnership share of NanjingXingnaheyuan Venture Capital Partnership (Limited Partnership) by subscribing to Nanjing Xingnahai EquityInvestment Partnership (Limited Partnership), and Jiangsu Yanghe Investment Management Co., Ltd. subscribesfor Suzhou The partnership shares of Zhongxing Fushuzhi Venture Capital Partnership (Limited Partnership) andNanjing Hongyang Equity Investment Partnership (Limited Partnership), Xingna Heyuan, Suzhou Xingfu andNanjing Hongyang have completed the fundraising and invested in China Securities Investment Fund Theindustry association has completed the filing, and the filing codes are SLR472, SNC111, and SNF086. For details,please refer to the "Announcement on Cooperative Investment with Professional Investment Institutions"(Announcement No.: 2020-031) disclosed by the company on August 12, 2020, and the "About Subscription ofSuzhou Zhongxin Fushuzhi Entrepreneurship" disclosed on October 19, 2020 Investment Fund Announcement(Announcement No.: 2020-035), and the Announcement on Subscription of Nanjing Hongyang Equity InvestmentFund (Announcement No.: 2020-038) disclosed on November 4, 2020.
6、Jiangsu Yanghe Investment Management Co., Ltd. subscribed for the partnership share of Zhuhai HengqinHuaye Tiancheng Phase IV Venture Capital Partnership (Limited Partnership), Xiamen Yuanfeng Equity InvestmentFund Partnership (Limited Partnership), and Shanghai Yunfeng Xincheng Investment Center (Limited Partnership).Huaye Phase IV, Xiamen Yuanfeng and Yunfeng Xincheng have completed the filing with the Asset ManagementAssociation of China. The filing codes are SQB769, SLX842 and SH1000 respectively. For details, please refer tothe "Announcement on Subscribing Zhuhai Hengqin Huaye Tiancheng Phase IV Venture Capital Fund" disclosedby the company on February 10, 2021 (Announcement No.: 2021-007), and the "About Subscription to Xiamen"disclosed on April 13, 2021 Yuanfeng Equity Investment Fund Announcement (Announcement No.: 2021-012),and the Announcement on Cooperative Investment with Professional Investment Institutions disclosed onAugust 6, 2021 (Announcement No.: 2021-033).XVII、Significant Events of the Company's Subsidiaries
□ Applicable √ N/A
Section VII Changes in Shares and Shareholders
I、Changes in shares
1、Table of Changes in Share Capital
Unit:share
Before the change | Changes in the period (+, -) | After the change | |||||||
Shares | Ratio | New Shares Issued | Bonus issue | Share transferred from capital reserve | Others | Sub-total | Shares | Ratio | |
1. Shares subject to conditional restriction(s) | 259,469,723 | 17.22% | 0 | 0 | 0 | -5,711,737 | -5,711,737 | 253,757,986 | 16.84% |
1.1State holdings | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
1.2Shares held by State-owned orporate | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
1.3.Other domestic holdings | 259,469,723 | 17.22% | 0 | 0 | 0 | -5,711,737 | -5,711,737 | 253,757,986 | 16.84% |
Including: held by domestic corporates | 249,480,000 | 16.55% | 0 | 0 | 0 | 0 | 0 | 249,480,000 | 16.55% |
held by domestic natural persons | 9,989,723 | 0.67% | 0 | 0 | 0 | -5,711,737 | -5,711,737 | 4,277,986 | 0.28% |
4.Foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Including: held by overseas corporates | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
held by overseas natural person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
2.Shares without restriction | 1,247,518,277 | 82.78% | 0 | 0 | 0 | 5,711,737 | 5,711,737 | 1,253,230,014 | 83.16% |
2.1RMB ordinary shares | 1,247,518,277 | 82.78% | 0 | 0 | 0 | 5,711,737 | 5,711,737 | 1,253,230,014 | 83.16% |
2.2Domestically listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
2.3Foreign shares listed overseas | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
2.4Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
3.Total shares | 1,506,988,000 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,506,988,000 | 100.00% |
Reason for share changes
√ Applicable □ N/A
Changes in shares were mainly due to changes in the shares locked by the current and outgoing directors,supervisors and senior managers of the company.Approval for changes in share capital
□ Applicable √ N/A
Transfer for changes in share capital
□ Applicable √ N/A
Effects of changes in share capital on the basic earnings per share ("EPS"), diluted EPS, net assets per shareattributable to common shareholders of the Company, and other financial indexes over the last year and lastperiod
□ Applicable √ N/A
Other contents that the Company considers necessary or required by the securities regulatory authorities todisclose
□ Applicable √ N/A
2、Changes in Restricted Shares
√ Applicable □ N/A
Unit:share
Name ofshareholder
Name of shareholder | Opening restricted shares | Increased in current period | Vested in current period | Closing restricted shares | Note for restricted shares | Date of unlocking |
Feng Pantai | 5,677,986 | 0 | 5,677,986 | 0 | Lock-up period for directors, supervisors and senior executives to leave office expires | July 28, 2021 |
Zheng Bujun | 45,000 | 0 | 11,250 | 33,750 | Directors, supervisors and senior executives are currently locked | N/A |
Wang Yao | 22,501 | 0 | 22,501 | 0 | Lock-up period for directors, supervisors and senior executives to leave office expires | August 23, 2021 |
Total | 5,745,487 | 0 | 5,711,737 | 33,750 | -- | -- |
II.Issuance and Listing of Securities
1. Securities (exclude Preferred Share) Issued during the Reporting Period
□ Applicable √ N/A
2.Explanation on Changes in Share Capital & the Structure of Shareholders, the Structure of Assets andLiabilities
□Applicable √ N/A
3.Existent Shares Held by Internal Staff of the Company
□ Applicable √ N/A
III、Particulars about the Shareholders and Actual Controller
1.Total Number of Shareholders and Their Shareholdings
Unit:share
Total numberof commonshareholdersat the end ofthe reportingperiod
Total number of common shareholders at the end of the reporting period | 186,749 | Total number of common shareholders at the end of the previous month prior to the annual report disclosure date | 154,216 | The total number of preferred shareholders whose voting rights have been restored at the end of the reporting period (if any) (see Note 8) | 0 | The total number of preference shareholders whose voting rights have been restored at the end of the previous month before the disclosure date of the annual report (if any) (see Note 8) | 0 | |||||||
Shareholders who hold more than 5% of total shares or the top 10 shareholders | ||||||||||||||
Name of Shareholders | Nature of shareholders | Share-holding percentage (%) | Total common shares held at the end of the reporting period | Increase/decrease during the reporting period | Number of restricted shares held | Number of unrestricted shares held | Pledge, marking or freezing | |||||||
Status | Amount |
Jiangsu YangheGroup Co., Ltd.
Jiangsu Yanghe Group Co., Ltd. | State-owned legal person | 34.16% | 514,858,939 | 0 | 0 | 514,858,939 | ||
Jiangsu Blue Alliance Co., Ltd. | Domestic Non-state-owned legal person | 17.58% | 264,991,926 | -29600000 | 249,480,000 | 15,511,926 | ||
Shanghai Haiyan Logistics Development Co., Ltd. | State-owned legal person | 9.67% | 145,708,137 | 0 | 0 | 145,708,137 | ||
Shanghai Jieqiang Tobacco Sugar & Wine (Group) Co., Ltd. | State-owned legal person | 3.96% | 59,744,099 | 0 | 0 | 59,744,099 | ||
Bank of China Limited - China Merchants CSI Baijiu Index Classified Securities Investment Fund | Others | 3.33% | 50,237,459 | 21355352 | 0 | 50,237,459 | ||
Bank of China Limited - E Fund Blue Chip Selected Mixed Securities Investment Fund | Others | 2.50% | 37,700,000 | 10500000 | 0 | 37,700,000 | ||
Hong Kong Securities Clearing Company Limited | Overseas legal persons | 2.22% | 33,426,973 | -12621381 | 0 | 33,426,973 | ||
China Securities Finance Corporation Limited | Domestic Non-state-owned legal person | 0.92% | 13,790,044 | 0 | 0 | 13,790,044 | ||
Bank of China Limited - E Fund Premium Selected Hybrid Securities Investment | Others | 0.66% | 10,000,070 | -- | 0 | 10,000,070 |
Fund
Fund | ||||||||
Jiangsu Yanghe Distillery Co., Ltd.-The first phase of the core backbone shareholding plan | Others | 0.61% | 9,118,384 | 9118384 | 0 | 9,118,384 | ||
Strategic investors or general legal persons becoming the top 10 shareholders due to placement of new shares (if any) (see Note 3) | NO | |||||||
Explanation of the related relationship or concerted action of the above shareholders | NO | |||||||
Explanation of the above-mentioned shareholders involving entrusted/entrusted voting rights and abstention from voting rights | NO | |||||||
Special instructions for the existence of a special repurchase account among the top 10 shareholders (if any) (see Note 10) | NO | |||||||
Shareholdings of the top 10 shareholders without restrictions on sales | ||||||||
Name of shareholders | Number of unrestricted shares held at the end of the reporting period | Type of shares | ||||||
Type | Amount | |||||||
Jiangsu Yanghe Group Co., Ltd. | 514,858,939 | RMB common shares | 514,858,939 | |||||
Shanghai Haiyan Logistics Development Co., Ltd. | 145,708,137 | RMB common shares | 145,708,137 | |||||
Shanghai Jieqiang Tobacco Sugar & Wine (Group) Co., Ltd. | 59,744,099 | RMB common shares | 59,744,099 | |||||
Bank of China Limited-China Merchants CSI Liquor Index Graded Securities Investment Fund | 50,237,459 | RMB common shares | 50,237,459 | |||||
Bank of China Limited-E Fund Blue Chip Selected Mixed Securities Investment Fund | 37,700,000 | RMB common shares | 37,700,000 | |||||
Hong Kong Securities Clearing Co., Ltd | 33,426,973 | RMB common shares | 33,426,973 |
Jiangsu Blue Alliance Co., Ltd.
Jiangsu Blue Alliance Co., Ltd. | 15,511,926 | RMB common shares | 15,511,926 |
China Securities Finance Co., LTD | 13,790,044 | RMB common shares | 13,790,044 |
Bank of China Limited-E Fund Premium Selected Hybrid Securities Investment Fund | 10,000,070 | RMB common shares | 10,000,070 |
Jiangsu Yanghe Distillery Co., Ltd.-The first phase of the core backbone shareholding plan | 9,118,384 | RMB common shares | 9,118,384 |
Description of the connected relationship or concerted action among the top 10 shareholders of unrestricted tradable shares, and between the top 10 shareholders of unrestricted tradable shares and the top 10 shareholders | NO | ||
Explanation on the participation of the top 10 ordinary shareholders in the securities margin trading (if any) (see Note 4) | NO |
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conductedany agreed buy-back in the reporting period?
□ Yes √ No
No such case during the current reporting period.
2. Particulars about Controlling Shareholder of the Company
Nature of controlling shareholder: local state-owned holdingType of controlling shareholder: Corporation
Name of Controlling Shareholder | Legal representative/ People in charge | Date of establishment | Organization Code | Business scope |
Jiangsu Yanghe Group Co., LTD | Yang Weiguo | 8 May, 1997 | 91321300142334989Y | Sales of brewing machinery and equipment, various raw and auxiliary materials, equipment and parts required for wine export and import production, industrial investment; municipal |
public works, housingconstruction projects,tourism and culturalindustry investment.
Change of controlling shareholder during the reporting period
□ Applicable √ N/A
The Company's controlling shareholder has not changed during the reporting period.
3. Particulars about the Company’s Actual Controller & Concerted Parties
Nature of actual controller: local state-owned assets management organizationActual controller type: Corporation
public works, housingconstruction projects,tourism and culturalindustry investment.Name of Actual Controller
Name of Actual Controller | Legal representative/ People in charge | Date ofestablishment | Organization Code | Business scope |
Suqian SASAC(State-owned Assets Supervision and Administration Commission) | Zhao Xiaoli | October 22, 2005 | N/A | On behalf of suqian Municipal people's Government to execute the responsibilities of state-owned enterprise investors, implementing the supervision and management of state-owned assets and state-owned enterprises. |
The equity of other domestic and foreign listed companies controlled by the actual controller during the reporting period | N/A |
Change of the actual controller during the reporting period
□ Applicable √ N/A
No such change during the reporting period.The ownership and controlling relationship between the actual controller of the Company and the Company isdetailed as follows:
The actual controller controls the company through trust or other asset management methods
□ Applicable √ N/A
4. The Company's Controlling Shareholder or the Largest Shareholder and its Concerted Action Person'sCumulative Pledged Shares Account for 80% of the Company's Shares Held by Them
□ Applicable √ N/A
5. Particulars about Other Corporate Shareholders with Shareholding Proportion over 10%
√ Applicable □ N/A
Name of Actual Controller
Name of Actual Controller | Legal representative/ People in charge | Date ofestablishment | Organization Code | Business scope |
Jiangsu Blue Alliance Co., LTD | Cong Xuenian | 28 July, 2016 | CNY 105.6 million | Sales of daily necessities, biotechnology research and development, furniture production, business management consulting services, fruit tree planting, pre-packaged food |
sales.
6. Particulars on Shareholding Decrease Restrictions for the Controlling Shareholders, Actual Controller,Restructurer or Other Committing Parties
□ Applicable √ N/A
IV. The specific implementation of share repurchases during the reporting periodThe implementation progress of share repurchases
□ Applicable √ N/A
The implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √ N/A
Section VIII Information about Preference Shares
□ Applicable √ N/A
There are no preferred shares in the company during the reporting period.
Section IX Information about Bonds
□ Applicable √ N/A
Section X Financial Report
I. Auditor’s report
Type ofauditreport
Type ofauditreport | Standard and unqualified opinion |
Date of signature | 27 April 2022 |
NameofAudit | Suya Jincheng CPALLP. |
No. of auditor’sreport | Suya Audit [2022] No.737 |
Names of auditors | Li Laimin ,LiYan |
Auditor’s Report
To all the shareholders of Jiangsu Yanghe Distillery Co., Ltd.:
OpinionWe have audited the financial statements of Jiangsu Yanghe Distillery Co., Ltd. (hereinafterreferred to as the “Company”), which comprise the consolidated balance sheet and balancesheet as at 31 December 2021, consolidated income statement and income statement,consolidated cash flow statement and cash flow statement, consolidated statement of changes inowners' equity and statement of changes in owners' equity for the year then ended and notes tothe 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 the financialposition of the company as at 31 December 2021 and its operating results and cash flow for theyear then ended.Basis for opinionWe conducted our audit in accordance with China Standards on Auditing (“CSAs”) for CertifiedPublic Accountants. Our responsibilities under those standards are further described in theAuditor's Responsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of professional ethics for CertifiedPublic Accountants in China (“the Code”), and we have fulfilled our other ethical responsibilitiesin accordance with the Code. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.Key audit mattersKey audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of our audit of the consolidated financial statements as a whole and, informing our opinion thereon, and we do not provide a separate opinion on these matters.
1.Recognition of revenue
1.Recognition of revenue | ||
Please refer to note 27, “Accounting Policies” in Note III, "Significant Accounting Policies and Estimates" and note 37 in Note V, "main Items of the Consolidated Financial Statements". | ||
Key aud itmatters | 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 2021, the Company’s annual operating revenue was CNY25.35 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 note 11, “Accounting Policies” in Note III, "Significant Accounting Policies and Estimates" and note 8 in Note V, "main Items of the Consolidated Financial Statements". | ||
Key aud itmatters | How our audit addressed the key audit matter | |
As at 31 December 2021, the book value of inventory is CNY 16.803 billion, accounting for 24.78% of the total assets and 33.77% 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 the year end. Therefore, the | Our procedures in relation to existence, valuation, allocation of inventories included: (1) Understood, tested and evaluated the effectiveness of management's design and implementation of inventory-related internal control. (2)Carried out the inventory analysis review |
existence, valuation and allocation ofinventories are identified as a key audit matter.
existence, valuation and allocation of inventories are identified as a key audit matter. | procedure. (3)Supervised the inventory 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 informationThe directors of the Company are responsible for the other information. The other informationcomprises the information included in the annual report, but does not include the financialstatements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.If, based on the work we have performed, we conclude that there is a material misstatement ofthis other information; we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of directors and those charged with governance for thefinancial statementsThe directors of the Company are responsible for the preparation of the financial statements thatgive a true and fair view in accordance with the disclosure requirements of Accounting Standardsfor Business Enterprises, and designing, implementing and maintaining internal control that isnecessary to ensure the financial statements are free from material misstatement, whether dueto fraud or error.In preparing the financial statements, the directors are responsible for assessing the Company’sability to continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting unless the directors either intend to liquidate theCompany or to cease operations, or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reportingprocess.
Auditor's responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, butis not a guarantee that an audit conducted in accordance with CSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CSAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
(1)Identify and assess the risks of material misstatement of the financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.
(2)Obtain an understanding of internal control relevant to the audit in order to design auditprocedures 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 uncertainty existsrelated to events or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required todraw attention in our auditor’s report to the related disclosures in the financial statements or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditionsmay cause the Company to cease to continue as a going concern.
(5)Evaluate the overall presentation, structure and content of the financial statements, includingthe disclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.
(6)Obtain sufficient and appropriate audit evidence regarding the financial information of theentities or business activities within the Company to express an opinion on the financialstatements. We are responsible for the direction, supervision and performance of the group audit.We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.We also provide the governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.From the matters communicated with the governance, we determine those matters that were ofmost significance in the audit of the consolidated financial statements of the current period andare therefore the key audit matters. We describe these matters in our auditor’s report unless lawor regulation precludes public disclosure about the matter or when, in extremely rarecircumstances, we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Suya Jincheng CPA LLP
Nanjing, China
Li LaiminCPA of China
Li Yan,CPA of China
27 April 2022
II. Financialstatements
Preparedby: Jiangsu Yanghe Distillery Co., Ltd.
Consolidated balance sheet
As at 31 December 2021
Unit: CNY
Item
Item | On December 31st 2021 | On December 31st 2020 |
Current assets: | ||
Cash and bank balances | 20,955,831,010.12 | 7,243,186,362.29 |
Settlement reserves | ||
Lending funds | ||
Held-for-trading financial assets | 10,953,894,328.01 | 14,301,978,905.17 |
Derivative financial assets | ||
Notes receivables | 663,849,328.28 | 613,496,333.71 |
Accounts receivables | 1,247,949.91 | 4,225,230.90 |
Receivables for Financing | 222,793,060.40 | |
Prepayment | 9,408,768.12 | 9,358,846.48 |
Premiums receivable | ||
Reinsurance accounts receivable | ||
Reinsurance contract reserve | ||
Other receivables | 11,520,008.85 | 30,318,938.67 |
Including: Interests receivable | ||
Dividends receivable | ||
Buying back the sale of financial assets | ||
Inventories | 16,803,093,441.81 | 14,852,694,146.30 |
Contractassets | ||
Assetsheld for sale | ||
Non-current assets due within one |
year
year | ||
Other current assets | 143,005,191.58 | 182,837,070.99 |
Total current assets | 49,764,643,087.08 | 37,238,095,834.51 |
Non-current assets: | ||
Disbursement of loans and advances | ||
Investment in debt instruments | ||
Investment in other debt instruments | ||
Long-term receivables | ||
Long-term equity investments | 32,743,397.31 | 29,528,377.16 |
Investment in other equity instruments | ||
Other non-current financial assets | 7,635,942,149.06 | 6,366,958,225.81 |
Investment property | ||
Fixed assets | 6,276,466,308.05 | 6,882,953,634.34 |
Construction in progress | 525,497,000.26 | 223,468,482.24 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use Assets | 19,610,113.75 | |
Intangible assets | 1,679,597,933.06 | 1,713,526,693.10 |
Development expenses | ||
Goodwill | 276,001,989.95 | 276,001,989.95 |
Long-term prepaid expenses | 16,104,679.68 | 127,071.76 |
Deferred tax assets | 1,385,956,896.18 | 925,921,403.51 |
Other non-current assets | 186,140,639.38 | 209,677,594.21 |
Total non-current assets | 18,034,061,106.68 | 16,628,163,472.08 |
Total assets | 67,798,704,193.76 | 53,866,259,306.59 |
Current liabilities: | ||
Short-term loans | ||
Borrowings from the central bank | ||
Loans from other banks | ||
Financial liabilities held for trading | ||
Derivative financial liabilities | ||
Notes payable | 30,000,000.00 | |
Accounts payable | 1,444,175,262.08 | 1,151,871,136.29 |
Advance from customer | ||
Contract liabilities | 15,804,521,430.17 | 8,801,346,891.32 |
Financial assets sold for repurchase | ||
Customer brokerage deposits | ||
Securities underwriting brokerage deposits |
Receivings from vicariously soldsecurities
Receivings from vicariously sold securities | ||
Employee benefits payable | 536,717,129.16 | 196,241,487.31 |
Taxes payables | 3,061,385,171.71 | 2,152,806,156.43 |
Other payables | 1,808,838,882.26 | 1,556,699,290.45 |
Including: Interests payable | ||
Dividends payable | ||
Handling charges and commissions payable | ||
Reinsurance accounts payable | ||
Liabilities held for sale | ||
Non-current liabilities due within one year | 8,405,846.77 | |
Other current liabilities | 2,039,264,937.72 | 798,216,651.49 |
Total current liabilities | 24,733,308,659.87 | 14,657,181,613.29 |
Non-current liabilities: | ||
Insurance contract reserves | ||
Long-term loans | 36,360.00 | 36,360.00 |
Bonds payable | ||
Including: Preference shares | ||
Perpetual bonds | ||
Lease liabilities | 10,729,824.19 | |
Long-term payable | 196,694,194.53 | 197,049,341.93 |
Long-term payroll payable | ||
Accrued liabilities | ||
Deferred incomes | 77,242,500.00 | 85,999,500.00 |
Deferred tax liabilities | 299,382,397.38 | 456,339,414.38 |
Other non-current liabilities | ||
Total non-current liabilities | 584,085,276.10 | 739,424,616.31 |
Total liabilities | 25,317,393,935.97 | 15,396,606,229.60 |
Shareholders'equity | ||
Share capital | 1,506,988,000.00 | 1,506,988,000.00 |
Other equity instruments | ||
Including: preference shares | ||
Perpetual bonds | ||
Capital reserves | 782,236,370.14 | 741,532,550.13 |
Less: Treasury shares | 56,278,680.79 | 1,002,128,680.79 |
Other comprehensive incomes | -5,843,990.29 | -5,213,248.93 |
Special reserves | ||
Surplus reserves | 753,494,000.00 | 753,494,000.00 |
General risk reserve
General risk reserve | ||
Retained Earnings | 39,505,614,090.53 | 36,489,911,363.13 |
Total equity attributable to owners of the parent company | 42,486,209,789.59 | 38,484,583,983.54 |
Non-controlling interests | -4,899,531.80 | -14,930,906.55 |
Total owners' equity | 42,481,310,257.79 | 38,469,653,076.99 |
Total liabilities and owners' equity | 67,798,704,193.76 | 53,866,259,306.59 |
Legal representative: Zhang LiandongPerson incharge of accounting affairs: Yin QiumingPerson in charge of accounting department: Zhao Qike
Balance sheet of parent companyAs at 31 December 2021
Unit: CNY
Item | Balance as at December 31 2021 | Balance as at December 31 2020 |
Current assets: | ||
Cash and bank balance | 19,908,620,924.68 | 5,713,353,085.92 |
Held-for-trading financial assets | 8,090,978,413.80 | 2,096,497,598.93 |
Derivative financial assets | ||
Notes receivables | 601,826,328.28 | 74,100,000.00 |
Accounts receivables | 424,595,684.45 | 387,657,700.12 |
Receivables for Financing | 10,760,000.00 | |
Pre-payment | 76,366,400.75 | 84,206,238.58 |
Other receivables | 2,211,826,118.30 | 10,403,769,305.69 |
Including: Interestsreceivables | ||
Dividends receivables | 1,812,736,853.55 | 1,775,818,203.33 |
Inventories | 11,289,319,403.65 | 10,343,443,087.16 |
Contract assets | ||
Assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | ||
Total current assets | 42,614,293,273.91 | 29,103,027,016.40 |
Non-current assets: | ||
Investment in debt instruments | ||
Investment in other debt instruments | ||
Long-term receivables | ||
Long-term equity investments | 7,994,556,728.17 | 7,964,291,378.23 |
Investment in other equityinstruments
Investment in other equity instruments | ||
Other non-current financial assets | 3,598,974,759.45 | 2,480,599,923.11 |
Investment property | ||
Fixed assets | 3,990,650,393.37 | 4,416,370,356.00 |
Construction in progress | 183,491,743.37 | 58,004,537.10 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use assets | 1,431,936.19 | |
Intangible assets | 1,181,546,201.25 | 1,208,261,829.54 |
Development expenses | ||
Goodwill | ||
Long-term prepaid expenses | 16,104,679.68 | |
Deferred tax assets | 12,941,142.63 | 8,032,095.76 |
Other non-current assets | 164,332,861.20 | 173,867,010.21 |
Total Non-current Assets | 17,144,030,445.31 | 16,309,427,129.95 |
Total Assets | 59,758,323,719.22 | 45,412,454,146.35 |
Current liabilities: | ||
Short-term loans | ||
Financial liabilities held for trading | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payables | 985,248,728.21 | 839,199,956.37 |
Advance from customer | ||
Contract liabilities | 21,199,823,390.34 | 10,764,681,770.37 |
Employee benefits payable | ||
Taxes payable | 643,076,598.44 | 809,734,252.60 |
Other payables | 1,842,392,622.94 | 186,265,132.79 |
Including: Interests payable | ||
Dividends payable | ||
Liabilities held for sale | ||
Non-current liabilities due within one year | 441,857.83 | |
Other current liabilities | 3,300,680,288.13 | 1,396,504,456.42 |
Total current liabilities | 27,971,663,485.89 | 13,996,385,568.55 |
Non-current liabilities: | ||
Long-term loans | 36,360.00 | 36,360.00 |
Bonds payable | ||
Including: preference shares | ||
Perpetual bonds |
Lease liabilities
Lease liabilities | 820,816.63 | |
Long-term payables | 144,104,709.73 | 144,254,229.73 |
Long-term payroll payables | ||
Provisions | ||
Deferred incomes | 5,000,000.00 | 5,000,000.00 |
Deferred tax liabilities | 248,825,948.76 | 387,147,470.28 |
Other non-currentliabilities | ||
Totalnon-current liabilities | 398,787,835.12 | 536,438,060.01 |
Total liabilities | 28,370,451,321.01 | 14,532,823,628.56 |
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 | 1,382,332,300.94 | 1,341,628,480.93 |
Less: Treasury shares | 56,278,680.79 | 1,002,128,680.79 |
Other comprehensive incomes | ||
Special reserves | ||
Surplus reserves | 753,494,000.00 | 753,494,000.00 |
Retained Earnings | 27,801,336,778.06 | 28,279,648,717.65 |
Total owners' equity | 31,387,872,398.21 | 30,879,630,517.79 |
Total liabilities and owners' equity | 59,758,323,719.22 | 45,412,454,146.35 |
Consolidated Income StatementFor the year ended 31 December 2021
Unit: CNY
Item | Year2021 | Year2020 |
1.Total operating revenue | 25,350,178,204.45 | 21,101,051,131.79 |
Including: Operating revenue | 25,350,178,204.45 | 21,101,051,131.79 |
Interest income | ||
Earned premium | ||
Fee and commission income | ||
2.Total operating costs | 15,637,137,313.61 | 13,773,294,252.09 |
Including: cost of sales | 6,255,397,564.10 | 5,851,904,596.71 |
Interest expense | ||
Handling charges and commission expenses |
Refunded premiums
Refunded premiums | ||
Net payments for insurance claims | ||
Net provision for insurance contracts | ||
Bond insurance expense | ||
Reinsurance expenses | ||
Taxes and surcharges | 4,147,982,128.12 | 3,415,645,769.03 |
Selling and distribution expenses | 3,544,364,889.54 | 2,603,804,157.78 |
General and administrative expenses | 1,830,080,139.18 | 1,729,080,201.93 |
Research and Development expenses | 258,458,102.63 | 260,094,291.03 |
Financial expenses | -399,145,509.96 | -87,234,764.39 |
Including: Interest expenses | 603,755.58 | 1,964.00 |
Interest income | 433,923,395.67 | 104,495,154.37 |
Plus: Other income | 90,850,747.98 | 98,969,626.89 |
Investment income ("-" forlosses) | 900,613,478.22 | 1,206,683,362.49 |
Including: income from investment in associates and joint ventures | 2,948,720.95 | 3,940,820.47 |
Disposal of financial instruments at a mortised cost ("-" for losses) | ||
Foreign exchange gains ("-" for losses) | ||
Net exposure to hedging gains ("-"for losses) | ||
Gains of changes in fair value (“-“ for losses) | -721,212,806.81 | 1,267,682,598.52 |
Credit Impairment Loss (“-“ for losses) | 12,627,487.28 | 246,482.45 |
Losses from asset impairment (“-“ for losses) | -7,175,293.45 | -6,196,876.85 |
Gains from disposal of assets ("-" for losses) | 184,684.97 | 45,438.89 |
3.Operating profits ("-" for losses) | 9,988,929,189.03 | 9,895,187,512.09 |
Plus: non-operating income | 20,718,383.00 | 25,039,870.29 |
Less: non-operating expenses | 63,220,053.35 | 41,325,490.38 |
4.Total profits before tax ("-" for total losses) | 9,946,427,518.68 | 9,878,901,892.00 |
Less: income tax expenses | 2,433,610,121.20 | 2,394,295,578.08 |
5.Net profit ("-" for net loss) | 7,512,817,397.48 | 7,484,606,313.92 |
Classification by operating continuity | ||
Net profit from continuing operation ("-" for losses) | 7,512,817,397.48 | 7,484,606,313.92 |
Net profit from discontinued operation ("-" for losses) |
Classification by owners
Classification by owners | ||
Attributable to owners of the parent company | 7,507,682,797.40 | 7,482,228,633.63 |
Attributable to non-controlling interests | 5,134,600.08 | 2,377,680.29 |
6.Net of tax from other comprehensive income | -633,966.69 | -1,630,142.86 |
Net of tax from other comprehensive income to the owner of the parent company | -630,741.36 | -1,604,477.77 |
Other comprehensive income cannot be re-classified into the profit and loss: | ||
Including: Changes in remeasured defined benefit obligations | ||
Share in other comprehensive income that cannot be classified into profit and loss under equity method | ||
Changes in the fair value of other equity instruments | ||
Fair value changesin enterprise's own creditrisk | ||
Others | ||
Other comprehensive income that will be reclassified into the profit and loss | -630,741.36 | -1,604,477.77 |
Including: Share in other comprehensive income that will be classified into profit and loss under equity method | 10,293.63 | -342,416.50 |
Net gain on debt instruments at fair value through other comprehensive income | ||
The amount of financial assets reclassified into other comprehensive income | ||
Other debt investment credit impairment provision | ||
Cash flow hedging reserve | ||
Balance arising from the translation of foreign currency financial statements | -641,034.99 | -1,262,061.27 |
Others | ||
Net of tax from other comprehensive income to non-controlling interests | -3,225.33 | -25,665.09 |
7.Total comprehensive income | 7,512,183,430.79 | 7,482,976,171.06 |
Total comprehensive incomeattributable to owners of the parentcompany
Total comprehensive income attributable to owners of the parent company | 7,507,052,056.04 | 7,480,624,155.86 |
Total comprehensive income attributable to non-controlling interests | 5,131,374.75 | 2,352,015.20 |
8.Earnings per share | ||
(1) Basic earnings per share | 5.0141 | 4.9843 |
(2) Diluted earnings per share | 5.0141 | 4.9843 |
Where an enterprise is merged under the same control in the current period, the net profitrealized by the merged party before the mergeris 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 Qiuming
Person in charge of accounting department: Zhao Qike
Income statement of parent companyFor the year ended 31 December 2021
Unit: CNY
Item | Year 2021 | Year 2020 |
1.Operating revenue | 10,476,842,189.83 | 9,815,174,332.42 |
Less: Cost of sales | 5,692,899,268.72 | 4,803,282,641.30 |
Taxes and surcharges | 3,418,193,216.10 | 2,935,628,072.08 |
Selling and distribution expenses | 4,350,000.19 | 3,062,752.15 |
General and administrative expenses | 953,846,877.96 | 886,635,671.06 |
Research and Development expenses | 255,876,693.41 | 244,483,533.34 |
Financial expenses | -360,797,750.83 | -61,151,383.38 |
Including: Interest expenses | 80,013.55 | 1,964.00 |
Interest income | 392,282,831.40 | 75,649,553.46 |
Plus: Other income | 35,355,375.48 | 16,130,425.67 |
Investment income ("-" for losses) | 4,025,167,004.11 | 6,468,741,332.69 |
Including: income from investment in associates and joint ventures | ||
Disposal of financial instruments at a mortised cost ("-" for losses) | ||
Net exposure to hedging gains ("- "for loss) | ||
Gains of changes in fair value(“-“ for losses) | -553,286,086.09 | 1,350,425,088.90 |
Credit Impairment Loss(“-“ forlosses)
Credit Impairment Loss(“-“ for losses) | 1,133,079.28 | 1,891,472.97 |
Losses from asset impairment ("-" for losses) | -6,671,650.31 | -6,196,876.85 |
Gains from disposal of assets ("-" for losses) | 10,672.49 | |
2. Operating profits ("-" For Losses) | 4,014,182,279.24 | 8,834,224,489.25 |
Plus: non-operating income | 2,129,227.09 | 10,689,415.40 |
Less: non-operating expenses | 26,922,264.60 | 32,071,726.22 |
3.Total profits before tax ("-" For Total Losses) | 3,989,389,241.73 | 8,812,842,178.43 |
Less: income tax expenses | -24,278,888.68 | 587,325,094.40 |
4.Net profit ("-" For Net Loss) | 4,013,668,130.41 | 8,225,517,084.03 |
Net profit from continuing operation ("-" for losses) | 4,013,668,130.41 | 8,225,517,084.03 |
Net profit from discontinued operation ("-" for losses) | ||
5.Net of tax from other comprehensive income | ||
Other comprehensive income cannot be re-classified 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 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
income | ||
The amount of financial assets reclassified into other comprehensive income | ||
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 | 4,013,668,130.41 | 8,225,517,084.03 |
7.Earnings per share | ||
(1) Basic earnings per share | ||
(2) Diluted earnings per share |
Consolidated Statement of Cash FlowsFor the year ended 31 December 2021
Unit: CNY
Item | Year 2021 | Year 2020 |
1.Cash flows from operating activities | ||
Cash received from sale of goods and rendering of services | 36,809,670,762.29 | 21,527,429,733.96 |
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 repurchasebusiness
Net capital increase in repurchase business | ||
Net cash received for the sale of securities | ||
Refunds of taxes and surcharges | 3,754,079.47 | |
Cash received from other operating activities | 728,428,911.66 | 369,789,635.60 |
Sub-total of cash inflows from operating activities | 37,538,099,673.95 | 21,900,973,449.03 |
Cash paid for goods purchased and services received | 7,772,357,695.47 | 6,286,561,510.66 |
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 | 2,639,141,713.39 | 2,154,721,871.26 |
Cash paid for taxes and surcharges | 8,805,477,883.69 | 7,194,164,716.07 |
Cash paid for other operating activities | 3,002,956,900.87 | 2,286,734,515.24 |
Sub-total of cash outflows from operating activities | 22,219,934,193.42 | 17,922,182,613.23 |
Net cash flows from activities operating | 15,318,165,480.53 | 3,978,790,835.80 |
2. Cash flows from investing activities | ||
Cash received from disposal of investments | 27,266,561,244.92 | 29,694,068,687.78 |
Cash received from returns on investments | 897,664,757.27 | 1,202,721,025.76 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 6,072,909.38 | 210,268.97 |
Net cash received from disposal of subsidiaries and other business units | ||
Cash received from other investing |
activities
activities | ||
Sub-total of cash inflows from investing activities | 28,170,298,911.57 | 30,896,999,982.51 |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 423,524,255.39 | 353,104,399.72 |
Cash paid for investments | 25,910,110,341.89 | 26,071,060,798.23 |
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 | 26,333,634,597.28 | 26,424,165,197.95 |
Net cash flows from investing activities | 1,836,664,314.29 | 4,472,834,784.56 |
3. Cash flows from financing activities | ||
Cash received from investors | 4,900,000.00 | |
Including: cash received by subsidiaries from investments by minority shareholders | 4,900,000.00 | |
Cash received from borrowings | ||
Cash received from other financing activities | 945,850,000.00 | |
Sub-total of cash inflows from financing activities | 950,750,000.00 | |
Cash paid for debt repayments | 36,363.00 | |
Cash paid for distribution of dividends and profits or payment of interest | 4,491,980,070.00 | 4,502,748,947.00 |
Including: dividends and profits paid to minority shareholders by subsidiaries | ||
Cash paid for other financing activities | 6,587,740.77 | 1,002,128,680.79 |
Sub-total of cash outflows from financing activities | 4,498,567,810.77 | 5,504,913,990.79 |
Net cash flows from financing activities | -3,547,817,810.77 | -5,504,913,990.79 |
4. Effect of fluctuation in exchange rate on cash and cash equivalents | -3,194,795.97 | -3,670,115.95 |
5. Net increase in cash and cash equivalents | 13,603,817,188.08 | 2,943,041,513.62 |
Plus: balance of cash and cashequivalents at the beginning of theperiod
Plus: balance of cash and cash equivalents at the beginning of the period | 7,243,186,362.29 | 4,300,144,848.67 |
6. Balance of cash and cash equivalents at the end of the period | 20,847,003,550.37 | 7,243,186,362.29 |
Cash flow statements of the parent companyFor the year ended 31 December 2021
Unit: CNY
Item | Year2021 | Year2020 |
1. Cash flows from operating activities | ||
Cash received from sale of goods and rendering of services | 23,589,835,408.72 | 7,298,161,290.23 |
Refunds of taxes and surcharges | 3,748,884.67 | |
Cash received from other operating activities | 10,226,189,295.58 | 115,821,893.81 |
Sub-total of cash inflows from operating activities | 33,816,024,704.30 | 7,417,732,068.71 |
Cash paid for goods purchased and services received | 6,502,601,435.75 | 4,754,965,644.22 |
Cash paid to and on behalf of employees | 1,219,405,817.53 | 976,080,459.90 |
Cash paid for taxes and surcharges | 4,301,849,478.48 | 3,310,811,322.45 |
Cash paid for other operating activities | 287,132,938.87 | 658,812,311.64 |
Sub-total of cash outflows from operating activities | 12,310,989,670.63 | 9,700,669,738.21 |
Net cash flows from activities operating | 21,505,035,033.67 | -2,282,937,669.50 |
2. Cash flows from investing activities | ||
Cash received from disposal of investments | 10,753,858,262.70 | 14,332,925,799.75 |
Cash received from returns on investments | 3,988,248,353.89 | 4,692,923,129.36 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 2,464,467.97 | 53,146.71 |
Net cash received from disposal ofsubsidiaries and other businessunits
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 | 14,744,571,084.56 | 19,025,902,075.82 |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 189,141,129.66 | 165,081,329.81 |
Cash paid for investments | 18,425,100,000.00 | 9,100,000,000.00 |
Net cash paid to acquire subsidiaries and other business units | ||
Cash paid for other investing activities | ||
Sub-total of cash outflows from investing activities | 18,614,241,129.66 | 9,265,081,329.81 |
Net cash flows from investing activities | -3,869,670,045.10 | 9,760,820,746.01 |
3. Cash flows from financing activities | ||
Cash received from investors | ||
Cash received from loans | ||
Cash received from other financing activities | 945,850,000.00 | |
Sub-total of cash inflows from financing activities | 945,850,000.00 | |
Cash paid for debt repayments | 36,363.00 | |
Cash paid for distribution of dividends and profits or payment of interest | 4,491,980,070.00 | 4,502,748,947.00 |
Cash paid for other financing activities | 703,669.72 | 1,002,128,680.79 |
Sub-total of cash outflows from financing activities | 4,492,683,739.72 | 5,504,913,990.79 |
Net cash flows from financing activities | -3,546,833,739.72 | -5,504,913,990.79 |
4. Effect of fluctuation in exchange rate on cash and cash equivalents | -1,036,905.61 | -1,292,596.02 |
5. Net increase in cash and cash equivalents | 14,087,494,343.24 | 1,971,676,489.70 |
Plus: balance of cash and cash | 5,713,353,085.92 | 3,741,676,596.22 |
equivalents at the beginning of theperiod
equivalents at the beginning of the period | ||
6. Balance of cash and cash equivalents at the end of the period | 19,800,847,429.16 | 5,713,353,085.92 |
Consolidated statement of changes in shareholders' equity
For the year ended 31 December 2021
Unit: CNY
Item
Item | Year 2021 | ||||||||||||||
Equity attributable to owners of the parent company | Non- controlling interest s | Total shareholders' equity | |||||||||||||
Share capital | Other equity instruments | Capital reserve | Less : Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | Genera l risk reserve | Undistributed profit | Others | Subtotal | |||||
Preferred stock | Perpetual bond | Other s | |||||||||||||
1. Balance as at 31 December of last 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 | ||||||
Plus: adjustments for changes in accounting policies | |||||||||||||||
Adjustments for correction of accounting errors in prior year | |||||||||||||||
Business combinations under common control |
Others
Others | |||||||||||||||
2.Balance as at January 1 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 | ||||||
3.Increases/decreases in the current year (“ -” for decreases) | 40,703,820.01 | -945,850,000.00 | -630,741.36 | 3,015,702,727.40 | 4,001,625,806.05 | 10,031,374.75 | 4,011,657,180.80 | ||||||||
(1) Total comprehensive income | -630,741.36 | 7,507,682,797.40 | 7,507,052,056.04 | 5,131,374.75 | 7,512,183,430.79 | ||||||||||
(2) Capital contributed or reduced by owners | 40,703,820.01 | -945,850,000.00 | 986,553,820.01 | 4,900,000.00 | 991,453,820.01 | ||||||||||
Capital contributions by owners | 4,900,000.00 | 4,900,000.00 | |||||||||||||
Capital contributions by other equity instruments holders | |||||||||||||||
Amounts of share-based payments recognized in owners' equity | 40,703,820.01 | -945,850,000.00 | 986,553,820.01 | 986,553,820.01 |
Others
Others | |||||||||||||||
(3) Profit distribution | -4,491,980,070.00 | -4,491,980,070.00 | -4,491,980,070.00 | ||||||||||||
Withdrawal of surplus reserves | |||||||||||||||
Withdrawal of general risk reserve | |||||||||||||||
Profit distributed to owners (or shareholders) | -4,491,980,070.00 | -4,491,980,070.00 | -4,491,980,070.00 | ||||||||||||
Others | |||||||||||||||
(4) Internal carry-forward of owners' equity | |||||||||||||||
Conversion of capital reserves into paid-in capital | |||||||||||||||
Conversion of surplus reserves into paid-in capital |
Surplusreservesoffsettinglosses
Surplus reserves offsetting losses | |||||||||||||||
Amounts of Changes in 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 | |||||||||||||||
Others | |||||||||||||||
4. Balance as at 31 | 1,506,988,000.00 | 782,236,370.14 | 56,278,680.79 | -5,843,990.29 | 753,494,000.00 | 39,505,614,090.53 | 42,486,209,789.5 | -4,899,531.80 | 42,481,310,257.79 |
December ofthe current year
December of the current year | 9 |
Item | Year 2020 | |||||||||||||||
Equity attributable to owners of the parent company | Non- controlling interest s | Total shareholders' equity | ||||||||||||||
Share capital | Other equity instruments | Capital reserve | Less : Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | Genera l risk reserve | Undistributed profit | Others | Subtotal | ||||||
Preferred stock | Perpetual bond | Other s | ||||||||||||||
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 |
commoncontrol
common control | |||||||||||||||
Others | |||||||||||||||
2. Balance as at January 1 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 | |||||||
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 ofshare-basedpaymentsrecognizedin owners'equity
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 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 |
Conversionof capitalreservesinto paid-incapital
Conversion of capital reserves into paid-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
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 | 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 |
Statement of changes in shareholders' equity of parent company
For the year ended 31 December 2021
Unit: CNY
Item | Year2021 | |||||||||||
Share capital | Other equity instruments | Capital reserve | Less:Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | Undistributed profit | Other s | Total shareholder s' equity | |||
Preferred stock | Perpetual bond | Others | ||||||||||
1. Balance as at 31 | 1,506,988,0 | 1,341,628,480 | 1,002,128, | 753,494,000. | 28,279,648,717 | 30,879,630,51 |
December of last year
December of last year | 00.00 | .93 | 680.79 | 00 | .65 | 7.79 | ||||||
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 | 1,002,128,680.79 | 753,494,000.00 | 28,279,648,717.65 | 30,879,630,517.79 | ||||||
3.Increases/ decreases in the current year (“ -” for decreases) | 40,703,820.01 | -945,850,000.00 | -478,311,939.59 | 508,241,880.42 | ||||||||
(1) Total comprehensive income | 4,013,668,130.41 | 4,013,668,130.41 | ||||||||||
(2) Capital contributed or reduced by owners | 40,703,820.01 | -945,850,000.00 | 986,553,820.01 | |||||||||
Capital contributions by owners (common stock) | ||||||||||||
Capital contributions by other equity instruments holders | ||||||||||||
Amounts of share-based payments recognized in owners' equity | 40,703,820.01 | -945,850,000.00 | 986,553,820.01 | |||||||||
Others |
(3) Profit distribution
(3) Profit distribution | -4,491,980,070.00 | -4,491,980,070.00 | ||||||||||
Withdrawal of surplus reserves | ||||||||||||
Profit distributed to owners (or shareholders) | -4,491,980,070.00 | -4,491,980,070.00 | ||||||||||
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 | ||||||||||||
Amounts of Changes in setting benefit plan transfer to retained earnings | ||||||||||||
Other comprehensive income transferred to retained earnings | ||||||||||||
Others | ||||||||||||
(5) Special reserves |
Withdrawal for theperiod
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 | 1,382,332,300.94 | 56,278,680.79 | 753,494,000.00 | 27,801,336,778.06 | 31,387,872,398.21 |
Statement of Changes in Shareholders' Equity
For the year ended 31 December 2020
Unit: CNY
Item | Year 2020 | |||||||||||
Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other Comprehensive Income | Special reserve | Surplus reserve | Undistributed profit | Other s | Total shareholder s' 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
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 | ||||||||||||
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
(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 | ||||||||||||
Amounts of Changes in 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 currentyear
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 |
III.Company profile
Jiangsu Yanghe Distillery Co., Ltd.(hereinafter referred to as “the Company”) was establishedon 26 December 2002, verified by the Government of Jiangsu Province, details referred to Replyon The approval of Establishment of Jiangsu Yanghe Distillery Co., Ltd. by the provincialgovernment (SuZhengFu [2002]No.155), and it was a company founded by Jiangsu Yanghe GroupCo., Ltd., Shanghai Haiyan Logistics Development Co., Ltd., Nantong Zongyi Investment Co., Ltd.,Shanghai Jieqiang Tobacco Sugar & Wine (Group) Co., Ltd., Jiangsu Venture Capital Co.,Ltd., ChinaNational Research Institute of Food and Fermentation Industries Co. Ltd., Nantong ShengfuIndustrial Trade Co., Ltd. and Yang Yandong and other totally 14 nature persons.
On 13 October 2009, the Company was verified by China Securities Regulatory Commission,according to the document Reply on Approving Initial Public Offering of Jiangsu Yanghe DistilleryCo., Ltd. (Zheng Jian Approval [2009] No.1077). The Company announced the initial public offeringof 45,000,000 common shares on 27October 2009 and was listed for transactions in SZSE since 6November 2009.
According to the decisions of 2010 Shareholders’ General Meeting on 23 April 2011, based onthe total capital of 450,000,000 shares on 31 December 2010, the capital reserves per 10 shareswere converted into 10 shares. After the conversion, the total share capital of the Company was900,000,000 as well as registered capital of CNY 900,000,000.
According to the decision of 2011 Shareholders’ General Meeting on 17 May 2012, based onthe total capital of 900,000,000 shares on 31 December 2011, the capital reserves per 10 shareswere converted into 2 shares. After the conversion, the total share capital of the Company was1,080,000,000 as well as registered capital of CNY 108,000,000.
According to the Proposal of Initial Share Repurchase of Public Shares approved by 2012Shareholders’ General Meeting on 17 May 2013, the Company used owned funds to repurchasepublic shares and the price of public shares was no more than CNY 70.00 per share, as well as thetotal amount of repurchase shares was no more than CNY 10 billion. The form of repurchase wascentralized competitive bidding approved by SZSE. Until May 2014, the amount of repurchaseshares was 3,580,000 and the total amount of payment CNY 157,793,218.58. The sharesrepurchased had been canceled according to the law with the procedure of capital reduction.After the repurchase, the registered capital became CNY 1,076,420,000 and the total share capitalof the Company became 1,076,420,000.
According to the decision of 2014 Shareholders’ General Meeting on 26 May 2015, based onthe total capital of 1,076,420,000 shares on 31 December 2014, the capital reserves per 10 shareswere converted into 4 shares. After the conversion, the total share capital of the company was1,506,988,000 as well as the registered capital of CNY 1,506,988,000.
Registered address of the Company: 118 Middle Avenue, Yanghe Town, Suqian City, JiangsuProvince
Company type: Incorporated company (Listed)
Industry of the Company: Brewing food industry
Business scope of the Company: production and sale of liquor, wholesaling and retailing ofprepackaged food, grain purchase, self-operating and agency of import and export of varioustypes of merchandise and technology excluding merchandise and technology limited orprohibited by the state for import and export, domestic trade, construction of e- commerceplatform and online sales. ( Business activities of projects needed to beapproved by law must beapproved according to related departments )
Parent company of the Company:JiangsuYanghe Group Co.,Ltd.
The scope of the Company's consolidated financial statements is based on control, and allsubsidiaries are included in the consolidation scope of the consolidated financial statements.
Changes of the scope of consolidation are as follows:
Subsidiaries that are newly incorporated into the scope of consolidation are shown in thefollowing table:
Name
Name | Measure of acquisition |
Jiangsu Shuanggou Wine Sales Co., Ltd
Jiangsu Shuanggou Wine Sales Co., Ltd | Newly establishment |
Jiangsu Jiushang Internet Technology Co., LTD | Newly establishment |
Jiangsu Yanghe Cultural Tourism Co., Ltd | Newly establishment |
Jiangsu Yanghe Cultural Tourism Operation Co., LTD | Newly establishment |
Siyang Blue Sky Packaging Service Co., Ltd | Newly establishment |
Details of the subsidiaries incorporated into the consolidated financial statements show on“Note 9. 1.Interests in subsidiaries”, Changes in the scope of consolidation show on “Note 8.Change in consolidated scope”.
I. Basis of preparation of financial statements
1. Basis of preparation
The Company has prepared its financial statements on a going concern basis, and recognizedand measured its accounting items in compliance with the Accounting Standards for BusinessEnterprises—Basic Standards and various concrete accounting standards, and other relevantprovisions 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.II. Significant accounting policies and accounting estimates
The disclosure requirements of food and wine manufacturing-related industries in theGuidelines for Self-regulation NO.3 of Listed Companies of Shenzhen Stock Exchange -IndustryInformation Disclosure shall be observed
(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 the customer andthe control of the goods is transferred. For export sales business, the Company recognizes therevenue after the goods are delivered and the customs clearance procedures are completed.
According to the marketing policy, and the dealer sales of final product, the Company givesthe dealer a percentage discount, and regularly or irregularly settles with dealers. At the time ofsettlement, the discounts are recorded in a sales invoice issued. The net amount of invoice valueafter the deduction of the discount sales income is recognized as revenue according to the accrualprinciple. The discounts that have occurred and have not yet been settled at the end of thecurrent period shall be taken provision from the sales revenue and recorded into the contractliabilities.
(2) Service Contract
The service contract provided by the Company contains the performance obligation of thelease service provided. Since the customer obtains and consumes the economic benefits broughtby the performance of the contract at the same time, it is regarded as the performance obligationperformed within a certain period of time and is equally apportioned and confirmed during theservice provision.
1. Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with ASBE, andpresent truly and completely, the group’s financial position, the Company’s and results ofoperations, and changes in shareholders' equity, cash flows and other related information for thereporting period.
2. Accounting period
The Company’s accounting period is calendar year as its accounting year, i.e. from 1 January to31 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 commoncontrol 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 of interestmethod.
Assets and liabilities obtained by the Company through business combination under commoncontrol shall be measured at the book value as stated in the combine’s accounting record on thecombination date. The share of the book value of the merged party’s owner’s equity in theconsolidated financial statements is taken as the initial investment cost of long-term equityinvestments in individual financial statements. The capital reserve (stock premium or capitalpremium) is adjusted according to the difference between the book value of net asset acquiredthrough combination and the book value of consideration paid for the combination (or total parvalue of shares issued). If the capital reserve (stock premium or capital premium) is insufficient tooffset, 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 under purchasemethod.
a) All the net identifiable assets, liabilities or contingent liabilities obtained by the Companythrough business combination not under common control shall be measured at fair value. Assetspaid, liabilities incurred or assumed and the equity securities issued as consideration forcombination are generally measured at fair value on the acquisition date, and differencesbetween their fair values and book values shall be included in the current profit and loss.
b) The cost of acquisition shall be respectively determined for the following conditions;
i. Business combination of a transaction implementation, the combination cost shall be thesum of the fair value of the assets given, the liabilities incurred or assumed and the equitysecurities issued by the Company in exchange for the control on the acquisition date, andcontingent considerations meeting the recognition conditions. The combination cost is the initialinvestment costs of long-term equity investments in individual financial statements.
ii. Business combination through multiple transactions step by step to realized, thecombination cost shall be the sum of the fair value measurement on the acquisition of the equityinvestment that holding before the acquisition date and cost of all the new investment on theacquisition date. Long-term equity investment cost in individual financial statements shall be thesum of the book value 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.
c) The Company, on the acquisition date, allocates the combination costs between theidentifiable assets and liabilities acquired
i. All assets of the acquiree obtained by the Company through business combination (notlimited to those that have been recognized by the acquiree), other than intangible assets, shall beseparately recognized and measured at fair value when the future economic benefits arisingthereafter are expected to flow into the Company and the fair value can be reliably measured.
ii. Intangible assets of the acquiree obtained by the Company through business combinationshall be separately recognized and measured at fair value when their fair values can be reliablymeasured.
iii. All liabilities of the acquiree obtained by the Company through business combination,other than contingent liabilities, shall be separately recognized and measured at fair value whenfulfillment of relevant obligations are expected to bring future economic benefits to the Companyand the fair value can be reliably measured.
iv. Contingent liabilities of the acquiree obtained by the Company through business
combination shall be separately recognized as liabilities and measured at fair value when their fairvalues can be reliably measured.v. When the Company allocates the cost of business combination and recognizes theidentifiable assets and liabilities acquired through combination, it shall not include any goodwilland deferred income taxes that have been recognized by the acquiree before the businesscombination.
d)Treatment of the difference between the business combination costs and the fair value ofnet identifiable asset acquired from the acquiree through combinationi. The Company shall recognize the difference of the combination costs in excess of the fairvalue of the net identifiable asset acquired from the acquiree through combination as goodwill.ii. The Company shall recognize the difference of the combination costs in short of the fairvalue of the net identifiable asset acquired from the acquiree through combination according tothe following provisions:
Review the measurement of fair values of all the identifiable assets, liabilities and contingentliabilities acquired from the acquiree and the combination costs.
After the review, if the combination costs are still in short of the fair value of the netidentifiable asset acquired from the acquiree through combination, include the difference in thecurrent 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 the Company(including the expenses for audit, legal services, evaluation and consultation or otherintermediary costs for business combination) shall be included in the current profit and loss whenthey are incurred.
b) Commissions, fees and other expenses paid on issuance of bonds and undertaking of otherdebts for the business combination shall be included in the initial measurement amount of debtsecurities.
i. Where the bonds are issued at discount or par value, that part of expenses will increase theamount of the discount.
ii. Where the bonds are issued at premium, that part of expenses will decrease the amount ofthe premium.
c) Fees, commissions, and other transaction expenses paid on issuance of equity securities ascombination consideration in the business combination shall be included in the initialmeasurement amount of equity securities.
i. Where the equity securities are issued at premium, that part of expenses shall be deductedfrom capital reserves (stock premium).
ii. Where the equity securities are issued at par value or discount, that part of expenses shallbe 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 statements shall
adopt the same accounting policies and accounting periods as those of the Company. If the
accounting policies or accounting periods of a subsidiary are different from those of the
Company, the financial statements of the subsidiary, upon preparation of consolidated
financial statements, shall be adjusted according to the accounting policies and accounting
periods of the Company.
(2) Preparation method of consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company
and its subsidiaries and are prepared by the parent company according to other relevant
information after the adjustment to long-term equity investments in subsidiaries under the
equity method and the elimination of effects of the internal transactions between the
Company and its subsidiaries and between the subsidiaries on the 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 the parentcompany are in excess of its share of owners’ equity in the subsidiary at the beginning of theperiod, the balance shall reduce the owners’ equity (retained earnings) of the parentcompany; where the current losses undertaken by a subsidiary’s non- controlling shareholdersexcess those non-controlling shareholders’ share of owners’ equity in the subsidiary at thebeginning 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 periodi. Treatment of acquiring subsidiaries from business combination under common controlduring the reporting periodDuring the reporting period, if the Company acquires subsidiaries from the businesscombination under common control, the opening balance in the consolidated balance sheetshall be adjusted. The incomes, expenses and profits of the newly acquired subsidiaries fromthe beginning to the end of the reporting period shall be included in the consolidated incomestatement. The cash flows of the newly acquired subsidiaries from the beginning to the end ofthe reporting period shall be included in the consolidated statement of cash flows.ii. Treatment of acquiring subsidiaries from business combination not under common controlduring the reporting periodDuring the reporting period, if the Company acquires subsidiaries from the businesscombination not under common control, the opening balance in the consolidated balancesheet shall not be adjusted. The incomes, expenses and profits of the newly acquiredsubsidiaries from the acquisition date to the end of the reporting period shall be included inthe consolidated income statement. The cash flows of the newly acquired subsidiaries fromthe acquisition date to the end of the reporting period shall be included in the consolidatedstatement of cash flows.b) Treatment of disposing subsidiaries during the reporting periodDuring the reporting period, if the Company disposes subsidiaries, the opening balance in theconsolidated balance sheet shall not be adjusted. The income, expenses and profits of thenewly disposed sub diaries from the beginning to the disposal date shall be included in theconsolidated income statement. The cash flows from the beginning to the disposal date shallbe included in the consolidated statement of cash flows.
7. Classification of joint venture arrangements and the accountingtreatment method ofcommon 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, andobligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangementwhereby the joint ventures only have the rights to the net assets under this arrangement.
A joint arrangement that is not structured through a separate vehicle shall be classified as ajoint operation. A separate vehicle refers to a separately identifiable financial structure, includingseparate legal entities or entities without a legal personality but recognized by statute.
A joint arrangement that is structured through a separate vehicle is usually classified as a jointventure. However, when a joint arrangement provides clear evidence that it meets any of thefollowing requirements and complies with applicable laws and regulations as a joint operation:
a) The legal form of the joint arrangement indicates that the parties that have joint controlhave rights to the assets, and obligations for the liabilities, relating to the arrangement.
b) The terms of the joint arrangement specify that the parties that have joint control have therights to the assets, and the obligations for the liabilities, relating to the arrangement.
c) Other facts and circumstances indicate that the parties that have joint control have rightsto the assets, and the obligations for the liabilities, relating to the arrangement---for example, theparties that have joint control have rights to substantially all of the output of the arrangement,and the arrangement depends on the parties that have joint control on a continuous basis forsettling the liabilities of the 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; and
e) 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 purchase date),highly liquid investments that are readily convertible to known amounts of cash and which aresubject to an insignificant risk of changes in value.
9. Foreign currency transactions and translation of foreign currency statements
(1) Accounting method of foreign currency transactions
a) Initial recognition of foreign currency transactions
For foreign currency transactions incurred, the Company converts the amount in foreigncurrency 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 foreigncurrency exchange occurred or transaction involving foreign currency exchange, the Companyconverts at the exchange rate actually adopted on the transaction date.
b) Adjustment or settlement on the balance sheet date or settlement date
On the balance sheet date or the settlement date, the Company handles foreign currencymonetary items and foreign currency non-monetary items separately in accordance with thefollowing methods:
i. Accounting principles for handling foreign currency monetary items
For foreign currency monetary items, on the balance sheet date or the settlement date, theCompany converts them by using the spot exchange rate (middle rate) prevailing on the balancesheet date or settlement date, and adjusts the amount in functional currency of foreign currencymonetary items in respect of the difference arising from exchange rate fluctuations, which shallbe treated as exchange difference at the same time. Among them, the exchange differencesarising from foreign currency loans relating to the acquisition, construction or production ofassets eligible for capitalization shall be included in the costs of assets eligible for capitalization;other exchange differences shall be included in the current financial expenses.
ii. Accounting principles for handling foreign currency non-monetary items
For foreign currency non-monetary items measured at historical cost, the Company shallconvert them at the spot exchange rate (middle rate) prevailing on the transaction date, withtheir amounts in functional currency remaining unchanged and no exchange differences incurred.
For an inventory that is measured at the lower of its costs or its net realizable values, if thenet realizable value is determined in foreign currency, the Company, when determining the valueof the inventory at the end of the period, shall firstly convert the net realizable value intofunctional currency and then compare it with the inventory cost reflected in functional currency.
Non-monetary items measured at fair value that is reflected in foreign currency at the end ofthe period, the Company shall firstly translate the foreign currency into the amount in functionalcurrency at the spot exchange rate on the date when the fair value is determined, and thencompare it with the original functional currency amount. Difference between the translatedfunctional currency amount and the original functional currency amount is treated as profit orloss from changes in fair value (including changes in exchange rate) and is recognized in currentprofit and loss.
(2) Accounting treatment method for translation of foreign currency statements
a) The Company shall translate the financial statements of foreign operations in accordancewith the following methods:
i. Assets and liabilities in the balance sheets shall be translated at the spot exchange rates onbalance sheet date. Shareholders’ equity items, except for the item of "undistributed profits", aretranslated at the spot exchange rates on the dates when the transactions occur.ii. Revenue and expense items in the income statement are translated at the spot exchangerates on the dates when the transactions occur or at the exchange rate determined in asystematical and reasonable method and similar to the spot exchange rate on the day when thetransactions occur.Differences arising from the above translations of foreign currency financial statements areseparately listed under ‘other comprehensive income’ in the consolidated balance sheet.The translation of comparative financial statements is handled by reference to the aboveapproach.
b) The Company shall translate the financial statements of foreign operations that are invirulent inflation economy in accordance with the following methods:
i. The Company restates the items in the balance sheet by using the general price index, andrestates the items in the income statement by using the changes in general price index, and thenconverts those items at the spot exchange rate on the latest balance sheet date.
ii. Where the foreign operations are no longer in virulent inflation economy, the Companyceases to restate the financial statements and converts the financial statements restatedaccording to the price level on such cease.
c) Where the Company disposes of an overseas business, it shall transfer the foreign currencyfinancial statements exchange difference, which relates to the business disposed of and ispresented under the items of the other comprehensive income in the balance sheet, from theother comprehensive income item to the gain or loss on disposal for the current period. If theoverseas business is partly disposed of, the foreign currency financial statements exchangedifference shall be calculated in proportion to the percentage of disposal and transferred to gainor loss on disposal for the current period.
10. Financial Instruments
Financial instruments are the financial asset, financial liability or (equity) instrument will berecognised when the Company became one of the parties under a contract.
(1) Classification of financial instruments
a) Classification of financial assets
According to the company's business model of managing financial assets and thecharacteristics of contract cash flow of financial assets, financial assets are classified into thefollowing three categories: financial assets measured at amortized cost; financial assets measuredat fair value through other comprehensive income (including financial assets directly designatedto be measured at fair value through other comprehensive income); and financial assetsmeasured at fair value through the current profit or loss.
b) Classification of financial liabilities
The Company classifies the financial liabilities into the following two categories: financialliabilities measured at fair value through current profit and loss (including financial liabilities heldfor trading and financial liabilities 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 instruments
When the Company becomes a party to a financial instrument, it shall recognize a financialasset or financial liability.
b) Measurement method of financial instruments
i.Financial assets
Financial assets are measured at fair value upon initial recognition. For financial assets at fairvalue through profit or loss, relevant transaction costs are directly recognized in profit or loss forthe period. For other categories of financial assets, relevant transaction costs are included in theamount initially recognized. Accounts receivable or notes receivable arising from sales of goods orrendering services and without significant financing component or the company decided not toconsider financing elements for less than one year are initially recognized based on the amount ofconsideration expected to be entitled to receive according to Accounting Standard for Business
Enterprises No. 14 - Revenue.
①Financial assets measured at amortized cost
These assets are subsequently measured at amortized cost using the effective interestmethod after initial recognition. Gains/losses on financial assets that are measured at amortizedcost and are not a part of any hedging relationship shall be recognized in profit or loss when thefinancial asset is derecognised or reclassification or amortized using the effective interest methodor recognized the impairment allowance.
②Financial assets measured at fair value through other comprehensive income
These assets are subsequently measured at fair value after initial recognition. Exceptimpairment, foreign exchange gains and losses, interest income calculated using the effectiveinterest method are recognized in profit or loss; other gains and losses are recognized in othercomprehensive income. On derecognition, gains and losses accumulated in other comprehensiveincome are transferred to profit or loss.
In addition, the company designated some non-tradable equity instruments as financialassets measured at fair value through other comprehensive income; the company shall recognizethe relevant dividend income of such financial assets into the current profit and loss, andrecognize the change of fair value in other comprehensive income. On derecognition, theaccumulated gains/losses previously recognized in other comprehensive income shall betransferred to retained earnings and not be recognized in current profit and loss.
③ Financial assets measured at fair value through profit or loss
The Company classifies the financial assets, except for financial assets measured at amortizedcost or at fair value through other comprehensive income as mentioned above, into the financialassets measured at fair value through profit or loss for the current period. In addition, thecompany may designate some financial assets as financial assets measured at fair value throughprofit or loss for the current period upon the initial recognition to eliminate or significantly reduceaccounting mismatch. For such financial assets, the company adopts the fair value for subsequentmeasurement, and changes in fair value are recognized in the profit or loss for the current period.
ii.Financial liabilities
Financial liabilities shall be classified into financial liabilities measured at fair value throughprofit or loss for the current period upon initial recognition and other financial liabilities. Forfinancial liabilities measured at fair value through profit or loss, relevant transaction costs aredirectly recognized in the current profit and loss, and the relevant transaction costs of otherfinancial liabilities are recognized in the initial recognition amount.
①Financial liabilities measured at fair value through profit or loss
Financial liabilities held for trading (including derivatives of financial liabilities) shall besubsequently measured at the fair value. Except for those related to hedge accounting, changes inthe fair value shall be recognized in the profit or loss of the current period. For financial liabilitiesdesignated to be at fair value through profit or loss, fair value changes caused by the Company'sown credit risk changes which is recognized in other comprehensive income, when the liability isderecognition, the accumulated change in its fair value caused by the change in its own credit riskrecognized in other comprehensive income is transferred to retained earnings, the remainingchanges of fair value is record 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 the accounting mismatch in theprofit and loss, the company will record all the gains/losses of such financial liabilities (includingthe amount affected by 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 assets does not qualify forderecognition or when the continuing involvement approach applies security contract areclassified as financial liabilities measured by amortized cost, or financial subsequentlymeasurement at amortized cost, and record the profits or losses guarantee contracts recognitionor amortization into the current profit and loss.
(3) Financial assets transfer
If the Company transfers substantially all the risks and rewards of ownership of the financialasset to the transferee, the Company derecognises the financial asset, the rights and obligationsarising or retained in the transfer shall be separately recognized as its assets or liabilities; if the
Company retains substantially all the risks and rewards of ownership of the financial asset, itcontinues to recognize the transferred financial assets. If the Company neither transfers norretains substantially all the risks and rewards of ownership of the financial asset, it is accountedfor as follows: if the Company has not retained control, it derecognises the financial asset, therights and obligations arising or retained in the transfer shall be separately recognized as its assetsor liabilities; and if the Company has retained control, it continues to recognize the financial assetto the extent of its continuing involvement in the transferred financial asset and recognizes therelevant liability.Where transfer of financial assets qualify for derecognition entirety, the difference betweenthe following two amounts will be included into current profit or loss: The book value measuredat the date of derecognition; and The sum of the consideration for the derecognition part and theportion of derecognition corresponding to the accumulated amount of the changes in fair valueoriginally and directly included in OCI (involving the situation where the financial asset transferredis a debt instrument investment measured at fair value and recognized in other comprehensiveincome). The Company transferred the partial transfer of financial assets which qualify forderecognition, the overall carrying amount of the transferred financial asset shall be apportionedaccording to their respective relative fair value between the portion of derecognition and theremaining.
(4) Derecognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been discharged, thecompany shall remove financial liability (or part thereof), and the company shall recognize thedifference between its book value and the consideration paid (including any non-cash assetstransferred or liabilities assumed) in the current profit and loss.
(5) Offsetting of financial assets and liabilities
Financial assets and financial liabilities shall be shown separately in the balance sheet andshall not be offset against each other. If the following conditions are met at the same time, thenet value offset each other after amount listed in the balance sheet:
The company has offset the confirmed amount of legal rights of financial assets and financialliabilities, and this kind of legal rights is the executable; and
The company plans to net or cash at the same time when the financial assets and liquidationof the financial liability.
If the transfer of financial assets does not meet the conditions for derecognition, thetransferor shall not offset the transferred financial assets and related liabilities.
(6) Equity instruments
Equity instruments are contracts that prove ownership of the residual interest in thecompany’s assets after deducting all liabilities. The issuance (including refinancing), repurchase,sale or cancellation of the equity instruments of the company shall be treated as changes in theequity. The company does not recognize changes in the fair value of equity instruments, and thetransaction fees related to the equity transactions shall be deducted from the equity. Where theequity instrument of the company distributes dividends during the term of its existence, it shallbe treated as profit distribution, and the total amount of shareholders' equity will not be affectedby 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 company shall determine itsfair value by quoting in the active market. Where there is no active market for the financialinstrument, the company shall determine its fair value by means of valuation technology. Invaluation, the company uses valuation techniques applicable in the current situation andsupported by sufficient available data and other information to select input values consistent withthe characteristics of assets or liabilities considered by market participants in transactions ofrelated assets or liabilities, and gives priority to relevant observable input values as far as possible.Use unobservable inputs only when relevant observable inputs cannot be obtained or areimpracticable to obtain.
Upon initial recognition, the fair value of financial assets or financial liabilities is determined
by the quoted price of the same assets or liabilities in the active market or other valuationtechnology that only uses observable market data, the Company defers the difference betweenthe fair value and the transaction price. After initial recognition, the Company recognizes thedeferred difference as gain or loss in the corresponding accounting period according to thechanges of a certain factor in the corresponding accounting period.
(8) Impairment of Financial Assets
Based on the expected credit loss, the Company shall recognize the impairment loss onfinancial assets measured at amortized cost, debt instrument investment at fair value throughother comprehensive income.a) The approach of recognition loss allowance for expected credit lossesConsidering the reasonable and valid information such as past events, current conditions andforecast of future economic conditions, and weighted by the risk of default, the Companycalculates the probability weighted amount of the present value of the difference between thecash flow receivable under the contract and the expected cash flow to be received, and confirmsthe expected credit loss.i. General approachThe Company assess whether the credit risk of financial instruments in different stages ateach reporting date has increased significantly. If the financial instruments' credit risk have notincreased significantly after initial recognition, it will be included in phase 1, and the Companymeasures the loss allowance for those instruments at an amount equal to 12-month expectedcredit losses; if the financial instruments' credit risk have increased significantly but withoutobjective evidence for impairment after initial recognition, it will be included in phase 2, and theCompany measures the loss allowance of those instruments at an amount equal to lifetimeexpected credit losses; if the financial asset that is evidently credit-impaired after initialrecognition, it will be included in phase 3, and the Company measures the loss allowance of thosefinancial instruments at an amount equal to lifetime expected credit losses. For financialinstruments with low credit risk on the balance sheet date (e.g. fixed deposits in commercialbanks with higher credit rating, financial instruments with external credit rating above"investment grade"), the Company assumes that the credit risk has not increased significantlysince the initial recognition and chooses to measure the loss provision according to the expectedcredit loss in the next 12 months.ii. Simplified approachFor accounts receivable, contract assets, lease receivables and Income-related notesreceivable that do not contain significant financing components or do not consider the financingcomponents in the contracts for no more than one year old, the company adopts simplifiedapproach and shall always measure the loss allowance at anamount equal to lifetime expectedcredit losses
For accounts receivable, contract assets and lease receivables are defined by the AccountingStandards for Business Enterprises No. 21-Leasing that include significant financing components,the company recognizes a loss allowance equal to the lifetime expected credit losses.
b) Criteria for determining whether credit risk has increased significantly subsequent to theinitial recognition
If the probability of default of a financial asset in lifetime as determined on the balance sheetdate is significantly higher than the probability of default in lifetime as determined at the initialrecognition, the credit risk of the financial asset increases significantly.
No matter what method the Company is applied to evaluate whether credit risk has increasedsignificantly, it usually inferred that the credit risk of the financial instrument has increasedsignificantly if the contract payment delay exceeds 30 days, unless the Company can get thereasonable and valid information at reasonable cost to evidence that the credit risk of thefinancial instrument has not increased significantly since the initial recognition.
Except in special cases, the Company shall use the change of default risk in the next 12months as a reasonable estimate of the change of default risk in lifetime to determine whetherthe credit risk has increased significantly to the initial recognition
c) Approach of assessing expected credit risk on a portfolio basis and determine basis
The company evaluates credit risk individually for the credit risk of significantly differentnotes receivables, accounts receivables, contract assets, lease receivables and other receivables
with the following characteristics. Such as: accounts receivables in dispute with the other party orinvolving litigation or arbitration; notes receivables, accounts receivables that have shown clearsigns that the debtor is likely to be unable to meet repayment obligations.When it is impossible to evaluate the expected credit loss information of an individualfinancial asset at a reasonable cost, the Company divides the receivables into several portfolioaccording to the credit risk characteristics 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 receivable divideds 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 | For accounts receivable divideds into risk portfolio, the Company refers to the historical credit loss experience, and combines the current situation and the forecast of future economic situation and prepares a comparison table between overdue ages of accounts receivable and expected credit loss rate of the whole duration to calculate the expected credit loss. |
Other Portfolio | The Company classifies items without significant recovery risk receivables 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. |
Lease receivable | For Lease receivables classified into combinations, the expected credit loss is calculated through the default risk exposure and the expected credit loss rate of the whole duration according to the historical credit loss experience, the current situation and the forecast of the future economic situation |
The Company shall take the provision or transfer the loss into the current profit and loss. Forthe debt instrument investment measured at fair value through other comprehensive income, theCompany shall adjust other comprehensive income while recording the impairment loss or gaininto 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 (including low-costconsumables), etc.
Measurement method of dispatched inventories
Dispatched materials and stock commodities are accounted for by using the weighted averagemethod.
(2) Basis to determine net realizable values of inventories and method of provision for
stock obsolescence
a) Determination basis of net realizable values of inventories
i. In normal operation process, for merchandise inventories held directly for sale, includingstock commodities (finished goods) and materials for sale, their net realizable values aredetermined at their estimated selling prices minus their estimated selling expenses 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 goods minusestimated costs to completion, estimated selling expenses and relevant taxes and surcharges.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 inventories specified in thesales contracts are less than the quantities held by the Company, the net realizable value of theexcess portion of inventories shall be based on general selling prices.iv. The materials held for production shall be measured at cost if the net realizable value ofthe finished products is higher than the cost. If a decline in the value of materials shows that thenet realizable value of the finished products is lower than the cost, the materials shall bemeasured at the net realizable value.
b) Provision for stock obsolescencei. Provisions for stock obsolescence are made at the lower of costs or net realizable values ona single basis.ii. For inventories with large quantity and relatively low unit prices, the provision for stockobsolescence 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 on aregular 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 materials
Packing 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. The company'scontract assets mainly include completed and unsettled assets and quality guarantee deposit. Thecontract assets 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.
For the determination method and accounting treatment method of expected credit loss ofcontract assets, refer to "Impairment of Financial Assets" in Note 10 (8).
13. Contract costs
Assets related to contract costs include contract acquisition costs and contract performancecosts.
The cost of contract fulfillment incurred by the company to perform the contract shall berecognized as an asset if the following conditions are met:
(1) The cost is directly related to a current or anticipated contract.
(2) The cost increases the company's resources for future performance obligations.
(3) The cost is expected to be recovered.
The incremental cost incurred by the company in obtaining the contract is expected to berecovered shall be recognized as an asset as the cost of obtaining the contract.
The Company amortizes the asset related to the contract cost on the same basis as therecognition of the revenue of the goods or services related to the asset, and includes it intheprofit or cost for the current period.
If the book value of the assets related to the contract cost is higher than the differencebetween the following two items, the Company will make an impairment provision for the excesspart and confirm it as the impairment loss of the assets:
(1) The transfer of the goods or services related to the asset less the estimated cost;
(2) Estimated impending costs for the transfer of the related goods or services.
If the impairment provision of the above asset is subsequently reversed, the book value ofthe asset after reversal shall not exceed the carrying amount the asset would have reached on thedate of reversal had the provision for impairment been not made.
14. Assets held for sale
Assets held for salea) Scope of a non-current asset held for sale and a disposal groupA non-current asset or disposal group is classified as held for sale when a company recoversits carrying value primarily through the sale (including the exchange of non-monetary assets of acommercial nature) rather than through the continuous use of such a group.A disposal group is a group of assets that are disposed as a whole through sales or other waysin one transaction and liabilities directly related to these assets delivered in the transaction.b) Recognition criteria of a non-current asset held for sale and a disposal groupThe Company recognizes its component (or non-current asset) that satisfies the followingconditions as assets held for sale:
i. The assets or disposal group must be available for immediate sale in its presentconditionsubject only to terms that are usual and customary for sales of such assets or disposal groups;
ii. Its sale must be highly probable. The Company has already made a decision todispose thecomponent and has a commitment from the purchaser, the transfer will be completed within oneyear. If it requires shareholders’ approval or supervisors’ approval according to regulations, it hasalready received approval from the general meeting of stockholders or relative authorityinstitution.
c) Accounting treatment and presentation of a non-current asset held for sale and adisposalgroup
The non-current asset or disposal group is first classified as held for sale, the Company shouldmeasure the non-current assets or assets and liabilities made up of disposal group in accordancewith relevant accounting standards.
When the Company measure a non-current asset or disposal group held for saleinitially orre-measure at balance sheet date subsequently, the impairment loss should be recognized if thebook value is higher than fair valueless costs to sell at the amount of the difference of these twoin profit and loss, the provision for assets held for sale need to be recognized at the same time.For the impairment of disposal group, should write off goodwill if existing, and then write downthe related assets proportionally. Depreciation or amortization should cease for the non-currentasset held for sale.
No matter the asset is classified as individual asset held for sale or assetbelonging to disposalgroup, the asset is presented as current assets under “assets held for sale” item; liabilities relatedto the asset transferred in the disposal group held for sale is presented as current liabilities under“liabilities held for sale” item in the balance sheet.
The Company is committed to a sale plan involving loss of control of subsidiaryshall classify allthe assets and liabilities of that subsidiary held for sale in consolidated balance sheets when theabove criteria are met, regardless of whether the Company retain a non–controlling interests inits former subsidiary after the sale. In the balance sheets of parent company the investmentshould be classified as held for sale in full. In the consolidated financial statements, all assets andliabilities of the subsidiaries are classified as held for sale.
Termination of business operations
Termination means any separate part which satisfies one of the following conditions andwhich has been disposed of or classified as being held for sale:
a) The component represents a separate principal business or a separate principal area ofoperation;
b) The component is part of an associated plan to dispose of a separate principal business ora separate principal operating area;
c) The component is a subsidiary acquired specifically for resale.
15. 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 initial investment costshall be recognized in accordance with the provisions mentioned in Notes 3(5). AccountingMethod for Long-term Equity Investment from Business Combinations under Common Control
and Business Combination not under Common Control.b) Except for the long-term equity investments arising from business combinations, thoseobtained by other means shall recognize their initial investment costs in accordance with thefollowing provisions:
i. For the long-term equity investments obtained by cash paid, the Company recognizes theactual purchase price as the initial investment costs. The initial investment costs include directlyrelated expense, taxes and other necessary expenses of obtaining long-term equity investments.ii. For the long-term equity investments acquired by the issue of equity securities (equityinstrument), the initial investment cost shall be the fair value of the equity securities (equityinstrument) issued. If the fair value of the long-term equity investment obtained is more reliablethan equity securities issued, the initial investment cost shall be the fair value of the long-termequity investment made by the investors. The cost directly attributable to the issue of equitysecurities (equity instrument), including fees, commissions, etc., write-downs premium price ofthe issue, if premium price of the issue is insufficient, write- downs surplus reserve andundistributed profit in turn. For the long-term equity investments acquired by the issue of debtsecurities (debt instrument), reference through the issuance of equity securities (equityinstrument).iii. For long-term equity investments obtained by debt restructuring, the Company recognizesthe fair value of shares of debt-for-equity swap as the initial investment costs.
iv. For long-term equity investments obtained by non-monetary assets exchange, under thecondition that an exchange of non-monetary assets is of commerce nature and the fair value ofassets exchanged can be reliably measured, non- monetary assets traded in is initially stated atthe fair value of the assets traded out, unless there is conclusive evidence indicating that the fairvalue of the assets traded in is more reliable; if the above conditions are not satisfied, initialinvestment costs of long-term equity investments traded in shall be recognized at the book valueof the assets traded out and the relevant taxes and surcharges payable.
Expenses, taxes and other necessary expenses incurred to the Company and that are directlyrelated to the obtainment of long-term equity investments shall be recognized as the initialinvestment costs of long-term equity investments.
For long-term equity investments obtained by the Company by any means, cash dividends orprofits declared but not yet distributed in the actual payments or the consideration actually paidfor the investment shall be separately accounted as dividends receivable and shall not constitutethe costs of long- term equity investments.
(2) Subsequent measurement and recognition of gains and losses of long-term equityinvestments
a) Long-term equity investment measured under cost method
i. If accompany can control an investee, namely investment in subsidiary, the long-term equityinvestment shall be measured under the cost method.
ii. For long-term equity investments accounted at the cost method, except cash dividends orprofits declared but not yet distributed which are included in the actual payments or theconsideration actually paid for the investment, the cash dividends or profits declared by theinvestee shall be recognized as the investment income irrespective of net profits realized by theinvestee before investment or after investment.
b) Long-term equity investments measured under the equity method
i. For the long-term equity investment which has joint control or significant influence over theinvestee, the equity method is adopted for accounting.
ii. For long-term equity investments measured at the equity method, if the initial investmentcosts are higher than the investor’s attributable share of the fair value of the investee’sidentifiable net assets, no adjustment will be made to the initial costs of the long-term equityinvestments; if the initial investment costs are lower than the investor’s attributable share of thefair value of the investee’s identifiable net assets, the difference shall be recognized in currentprofit and loss 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 theshares of net profits and other comprehensive income realized by the investee that shall beenjoyed or borne by the Company, recognize the profit and loss on the investments and adjust the
book value of the long-term equity investments. When recognizing the net profits and losses andother comprehensive income of the investee that the Company shall enjoy or bear, the Companyshall make a recognition and calculation based on the net book profits and losses of the investeeafter appropriate adjustments. However, where the Company is unable to obtain the relevantinformation due to failure to reasonably determine the fair value of the investee’s identifiableassets, minor difference between the investee’s identifiable assets and the book value thereof orother reasons, the profits or losses on the investments shall be directly calculated and recognizedbased on the net book profits and losses of the investee. The Company shall calculate the partdistributed from cash dividends or profits declared by the investee and correspondingly reducethe book value of the long-term equity investments.
When recognizing the income from investments in associates and joint ventures, theCompany shall write off the part of incomes from internal unrealized transactions between theCompany and associates and joint ventures which are attributable to the Company and recognizethe profit and loss on investments on such basis. Where the losses on internal transactionsbetween the Company and the investee fall into the scope of losses on assets impairment, fullamounts of such losses shall be recognized. Profit and loss from internal unrealized transactionsbetween the Company’s subsidiaries included into the combination scope and associates andjoint ventures shall be written off according to the above principles and the profit and loss oninvestments thereafter shall be recognized on such basis.When the share of net loss of the investee attributable to the Company is recognized, it istreated in the following sequence: Firstly, write off the book value of the long-term equityinvestments; where the book value of the long- term equity investments is insufficient to coverthe loss, investment losses are recognized to the extent that book value of long-term equity whichform net investment in the investee in other substances and the book value of long-termreceivables shall be written off; after all the above treatments, if the Company still assumesadditional obligation according to investment contracts or agreements, the obligation expected tobe assumed should be recognized as provision and included into the investment loss in thecurrent period. If the investee is profitable in subsequent accounting periods, the Company shalltreat the loss in reverse order against that described above after deducting unrecognized share ofloss: i.e. write down the book value of the recognized provision, then restore the book value oflong-term interests which substantially form net investments in the investee, then restore thebook value of long-term investments, 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 investee
Common control is the contractually agreed sharing of control of an arrangement, whichexists only when decisions about the relevant activities require the unanimous consent of theparties sharing control. Relevant activities of an arrangement usually include selling andpurchasing of goods or services, managing financial assets, acquiring or disposing of assets,researching and developing activities and financing activities. A joint venture is a jointarrangement whereby the joint ventures have rights to the net assets of the arrangement. Theparties have rights to the assets, and obligations for the liabilities, relating to the arrangement,which is a joint operation, but not a joint venture.
b) Basis for judgment of significant influence over investee
The term “significant influence” refers to the power to participate in decision-making on thefinancial and operating policies of the investee, but with no control or joint control over theformulation of these policies. Where the Company is able to exert significant influence over theinvestee, the investee is its associate.
16. Fixed assets
(1) Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, providingservices, renting or business management with useful life exceeding one accounting year. Fixedassets are recognized when the following criteria are satisfied simultaneously:
a) It is probable that the economic benefits relating to the fixed assets will flow into theCompany;
b) The cost of the fixed assets can be measured reliably.
(2) Depreciation of fixed assets
Category
Category | Depreciation method | Estimated useful life (Yrs) | Estimated residual value rate (%) | Annual depreciation rate (%) |
Buildings And constructions | Straight-linemethod | 20 ~25 | 5 | 3.80 ~4.75 |
Machinery equipments | Straight-linemethod | 10 | 5 | 9.50 |
Transportation equipments | Straight-linemethod | 10 | 5 | 9.50 |
Other equipments | Straight-linemethod | 8 | 5 | 11.88 |
17. 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- operatingprojects, total expenditures are measured according to the expenditures of direct materials,direct labor, direct measurement mechanical construction costs and other expenditures; forcontracting projects, total expenditures are measured according to project costs payable andother expenditures. Borrowing costs incurred before the projects that are undertaking withborrowing costs reach working condition for their intended use and meeting the condition forcapitalization shall be capitalized and included 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 fixed assetsat the estimated value according to the project budget, construction price or actual cost, etc. fromthe date when it reaches the working condition for intended use and the fixed assets shall bedepreciated in accordance with the Company’s policy on fixed asset depreciation; adjustmentshall be made to the estimated value based on the actual cost after the completion of settlementis handled, but depreciation already provided will not be adjusted.
18. 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 currency loan, etc.
(2) Recognition principles of capitalization of borrowing costs
The borrowing costs incurred to the Company and directly attributable to the acquisition andconstruction or production of assets eligible for capitalization should be capitalized and recordedinto relevant asset costs; other borrowing costs should be recognized as costs according to theamount incurred and be included into the current profit and loss.
Assets eligible for capitalization include fixed assets, investment properties, inventories andother assets which may reach the working condition for their intended use or sale by acquisitionand construction or production activities for quite long time.
(3) Recognition of capitalization period of borrowing costs
a) Recognition of commencement of capitalization of borrowing costs
Borrowing costs may be capitalized when asset disbursements have already been incurred,borrowing costs have already been incurred and the acquisition and construction or productionactivities which are necessary to prepare the assets for their intended use or sale have alreadybeen started. Among which, asset disbursements include those incurred by cash payment, thetransfer of non-cash assets or the undertaking of interest-bearing debts for acquiring andconstructing or producing assets eligible for capitalization.
b) Recognition of period of capitalization suspension of borrowing costsIf the acquisition and construction or production activities of assets eligible for capitalizationare interrupted abnormally and this condition lasts for more than three months, the capitalizationof borrowing costs should be suspended. The borrowing costs incurred during interruption arecharged to profit or loss for the current period, and the capitalization of borrowing costscontinues when the acquisition and construction or production activities of the asset resume. Ifthe interruption is necessary for the acquisition and construction or production to prepare theassets for their intended use or sale, the capitalization of borrowing costs should continue.
c) Recognition of period of capitalization cessation of borrowing costsCapitalization of borrowing costs should cease when the acquired and constructed orproduced assets eligible for capitalization have reached the working condition for their intendeduse or sale. Borrowing costs incurred after the assets eligible for capitalization have reached theworking condition for their intended use or sale should be recognized as the current profit andloss when they incur.If all parts of the acquired and constructed or produced assets are completed, each part maybe used or sold externally in the process of continuous construction of other parts and thenecessary acquisition or production activities have been substantially completed to make the partof assets reach the working condition for their intended use or sale, the capitalization ofborrowing costs related to the part of assets should be ceased; if all parts of the acquired andconstructed or produced assets are completed but the assets cannot be used or sold externallyuntil overall completion, 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 each accountingperiod (including amortization of discounts or premiums) shall be recognized according to thefollowing provisions:
i. As for special loan borrowed for acquiring and constructing or producing assets eligible forcapitalization, borrowing costs of special loan actually incurred in the current period less theinterest income of the loans unused and deposited in bank or return on temporary investmentshould be recognized as the capitalization amount of borrowing costs.ii.As for general loans used for acquiring and constructing or producing assets eligible forcapitalization, the interest of general loans to be capitalized should be calculated by multiplyingthe weighted average of asset disbursements of the part of accumulated asset disbursements inexcess of special loans by the capitalization rate of used general loans. The capitalization rate iscalculated by weighted average interest rate of general loans.iii. Where there are discounts or premiums on loans, the amounts of interest for eachaccounting period should be adjusted taking account of amortizable discount or premiumamounts for the period by effective interest method.
iv. During the period of capitalization, the capitalized amount of interest of each accountingperiod shall not exceed the current actual interest of the relevant loans.
b) Recognition of capitalized amounts of auxiliary expenses of loans
i.Auxiliary expenses incurred from special loans before the acquired or constructed assetseligible for capitalization reach the working condition for their intended use or sale should becapitalized when they incur and charged to the costs of assets eligible for capitalization; thoseincurred after the acquired or constructed assets eligible for capitalization reach the workingcondition for their intended 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 costs according to theamounts incurred when they occur and included in the current profit and loss.
c) Recognition of capitalized amount of exchange differences
During the period of capitalization, exchange differences incurred from the principal andinterest of special foreign currency loans should be capitalized and included in the costs of theassets eligible for capitalization.
19.Right-of-use assets
An asset that represents a lessee’s right to use an underlying asset for the lease term.At the commencement date of the lease term, the company recognizes the right-of-use assetsand lease liabilities of all leases except for short-term leases and leases of low-value assets, andconfirm the depreciation and interest expenses respectively during the lease term.The Companycharges the lease payment of the short-term lease and the low-value asset lease as the currentloss and profit or the relevant asset costs on a straight-line basis over each period during the leaseterm.
(1) Initial measurement
At the commencement date, a lessee shall measure the right-of-use asset at cost. The cost ofthe right-of-use asset shall comprise:
① the amount of the initial measurement of the lease liability,
② any lease payments made at or before the commencement date, less any lease incentivesreceived, which is the incremental cost for the lease
③ any initial direct costs incurred by the lessee;
④ an estimate of costs to be incurred by the lessee in dismantling and removing theunderlying asset, restoring the site on which it is located or restoring the underlying asset tothecondition required by the terms and conditions of the lease, unless those costs are incurredtoproduce inventories
(2) Subsequent measurement
a) Measurement basis
After the commencement date, a lessee shall measure the right-of-use asset applying acostmodel. To apply a cost model, a lessee shall measure the right? of? use asset at cost lessanyaccumulated depreciation and any accumulated impairment losses; and adjusted foranyremeasurement of the lease liability specified in the lease term.
b) Depreciation of the right-of-use assets
Since the commencement date, the Company shall depreciate the right-of-use asset.Depreciation shall be made in the month of lease commencement and shall be accounted inthecost of related asset or profit and loss. When determining the depreciation method, straight linemethod is used for depreciationbased on the expected way of consuming of economic benefitrelated to the right-of-use asset. The Company shall depreciate the right-of-useassetsubsequently based on the book valueafter impairment loss deduction if impairment isapplicable.
20. Intangible assets
(1) Measurement, useful life and impairment test
a) Initial measurement of intangible assets
i. Initial measurement of outsourcing intangible assets
Costs of outsourcing intangible assets shall be recognized according to the purchase price,related taxes and other expenses directly attributed to reaching the working condition for theirintended use. The cost of intangible assets shall be recognized based on present value of purchaseprice when deferred payment over normal credit conditions with financial nature. The differencebetween actual payment and purchase price, expect for capitalized amount, shall be included intothe current profit and loss in the period of credit.
ii. Initial measurement of internally researched and developed intangible assets
Costs of internally researched and developed intangible assets shall be recognized accordingto the total expenses during the period after the assets are eligible for capitalization and beforethey reach the intended purpose and the expenses that have been included in the previousperiods shall no longer be adjusted.
Expenses on the research phase of internally researched and developed intangible assetsshall be included in the current profit and loss when they incur; those on the development phaseineligible for capitalization shall be included in the current profit and loss; those eligible forcapitalization shall be recognized as intangible assets. If it is unable to distinguish expenditure onthe research phase and expenditure on development phase, the research and developmentexpenditures shall be all included in the current profit and loss.
b) Subsequent measurement of intangible assets
The useful lives of intangible assets are analyzed on acquisition. Intangible assets obtained bythe Company are divided into intangible assets with limited useful lives and intangible assets withindefinite useful lives.
i. Subsequent measurement of intangible assets with limited useful lives
The intangible assets with limited useful lives are amortized on a straight-line basis when theyreach intended use over their useful lives with no residual value reserved. Amortizations ofintangible assets are usually recorded into the current profit and loss; where the economicbenefits of an intangible asset are realized by the products or other assets produced thereafter,the amortizations are recorded into the costs of the relevant assets.
Category, estimated useful life, estimated net residual value rate and annual amortization rateof intangible assets are shown below:
Category of intangible
assets
Category of intangible assets | Estimated useful life (Yrs) | Estimated net residualvalue 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 on thebalance sheet date shall be reviewed.
ii. Subsequent measurement of intangible assets with indefinite useful lives
Intangible assets with indefinite useful lives are not amortized in the holding period, butimpairment tests are performed at the end of each year.
c) Estimates of useful lives of intangible assets
i. For intangible assets from any contractual right or other statutory rights, their useful livesshall be recognized according to the period no more than that of the contractual or otherstatutory rights; when the contractual right or other statutory rights contract is extended due torenewal of contracts and there is evidence that the renewal of the Company does not need largecosts, the renewal period shall be included into the useful lives.
ii. Where the contract or the law fails to specify the useful lives, the Company integratessituations in all aspects and determine the period of intangible assets that can bring economicbenefits for the Company by hiring the relevant experts to demonstrate or comparing with thesituation of the industry as well as referring to the Company’s historical experience or otherwise.
iii. If it is still unable to reasonably determine that intangible assets may bring economicbenefits for the Company according to the above methods, the intangible assets are taken asintangible assets with indefinite useful lives.
(2) Accounting policies of internal research and development expenditure
According to the actual situation of the research and development, the Company classifiesthe research and development project into that on the research phase and that on thedevelopment phase.
a) Research stage
Research stage is the stage when creative and planned investigations and research activitiesare conducted to acquire and understand new scientific or technological knowledge.
b) Development stage
Development stage is the stage when the research achievements or other knowledge areapplied to a plan or design, prior to the commercial production or use, so as to produce any newor substantially improved material, device or product.
Expenditure of an internal research and development project on the research phase shall beincluded in current profit and loss when it occurs.
Specific criteria for qualifying expenditure on the development phase forcapitalization
Expenditure on the development phase of an internal research and development project shallbe recognized as intangible assets only when the following conditions are simultaneouslysatisfied:
i. It is technically feasible to finish intangible assets for use or sale;
ii.It is intended to finish and use or sell the intangible assets;
iii. 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 products manufactured byapplying the intangible assets or there is a potential market for the intangible assets themselves
or the intangible assets will be used internally;
iv.It is able to finish the development of the intangible assets, and able to use or sell theintangible assets, with the support of sufficient technologies, financial resources and otherresources;v.The expenditure attributable to the intangible asset during its development phase can bemeasured reliably.
21. Non-current assets impairment
If there are impairment indicators of long-term equity investment, investment propertymeasured at cost model, fixed assets, construction in progress, right-of-use assets, intangibleassets with indefinite useful lives and other long-term assets at balance sheet date, impairmenttest should be performed. If the result of impairment test shows that recoverable amount is lessthan its book value, the difference should be provided for impairment and recorded intoimpairment loss. The recoverable amount is the higher of fair values less costs of disposal and thepresent values of the future cash flows expected to be derived from the asset. Provision forimpairment is calculated and recognized on the basis of individual asset. If recoverable amount ofindividual asset is difficult to be estimated, the Company should recognize the recoverableamount of the asset group which the individual asset belongs to. Asset group is the minimumasset group which can generate cash inflow separately.
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 from businesscombination should be amortized to relevant asset group using the reasonable method from thedate of purchase. If it is difficult to amortize it to relevant asset group, amortize it to relevantasset group portfolio. Apportion book value of goodwill to relevant asset group or asset groupportfolio according to the proportion of fair value of asset group or asset group portfolioaccounting for total amount of relevant asset group or asset group portfolio. If fair value isdifficult to be measured reliably, amortize according to the proportion of book value of assetgroup or asset group portfolio accounting for total amount of relevant asset group or asset groupportfolio. When perform impairment test for asset group or asset group portfolio includinggoodwill, if there is impairment indicator of asset group or asset group portfolio relevant togoodwill, perform impairment test for asset group or asset group portfolio without goodwill firstly,calculate its recoverable amount, compare with relevant book value and recognize impairmentloss. Then perform impairment test for asset group or asset group portfolio including goodwill,compare book value of the asset group or asset group portfolio (including proportional bookvalue of goodwill) 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 the subsequentaccounting periods.
22. Long-term deferred expenses
(1) Scope of long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been already incurred butwill be born in this period and in the future with an amortization period of over 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 the beneficialperiod.
23. Contract liability
Contract liabilities refer to the obligation of a company to transfer commodities to customersfor consideration received or receivable from customers.If the customer has paid the contractconsideration or the company has obtained an unconditional right to receive the goods prior tothe company's transfer of the goods to the customer, the company will show the amount receivedor receivable as a contractual liability in which earlier the customer actually pays the amount or
the amount becomes due.The contract assets and contract liabilities under the same contractshall be shown on a net basis, and the contract assets and contract liabilities under differentcontracts shall not be set off.
24. Employee benefits
(1) Accounting treatment of short-term benefits
Short-term benefits are the benefits that the Company expect to pay in full within 12 monthsafter the reporting period in which the employee provided relevant services, excluding thecompensation for employment termination.Short-term benefits include wage, bonus, allowance and subsidy, employee welfare, socialsecurities including health insurance and work injury insurance, housing common reserve fund,union expenditure and employee training expenditure, short-term paid leave, short-termprofit-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 includedin the current profits and losses or the cost relevant assets.
(2) Accounting treatment of post-employment benefits
The defined contribution plan of the Company includes payments of basic pension,unemployment insurance, annuity, etc. that accord to relevant provisions. The amount which theCompany deposit on balance sheet date in exchange for the service of the employee during theaccounting period will be recognized as employee benefits liability and shall be included into theprofit 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 encourages voluntaryresignation. Employee benefits liabilities shall be recognized and included into profit or loss forthe current period on the earlier date of the two following circumstances:
a) When the Company is not able to withdraw the benefits from termination of employmentor 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-term benefits,post-employment benefits and termination benefits. At the end of reporting period, the companywill recognize the employee benefits cost from other long-term employee benefits as thefollowing components:
a) Service costs;
b) Net amount of interest from other long-term employee benefits net liabilities or assets;
c) Changes from recalculation of the net liabilities or assets from other long-term employeebenefits.
In order to simplify related accounting procedure, the net amount of the above subjects shallbe included into current profit or loss or the cost of relevant assets.
25. Lease liabilities
(1) Initial measurement
At the commencement date, a lessee shall measure the lease liability at the present valueofthe lease payments that are not paid at that
a) Lease payment
The lease payments included in the measurement of the lease liability comprise thefollowingpayments for the right to use the underlying asset during the lease term that are notpaid at thecommencement date:
i. fixed payments (including in-substance fixed payments) less anylease incentives receivable;
ii. variable lease payments that depend on an index or a rate, initially measured using theindex or rate as at the commence date;
iii. The exercise price of the purchase option, if the Company is reasonably certain to exercisethat option;
iv. Payments of penaltiesfor terminating the lease, if the lease term reflects the lesseeexercising an option to terminate the lease;
v. The amount expected to be paid based on the residual value of the guarantee provided bythe company.
b)The discount rate
When calculating the present value of lease payments, the interest rate in the lease isdetermined as the discount rate. If the rate cannot be readily determined, the Company shall usethe lessee’s incremental borrowing rate, which is the rate of interest that a lessee wouldhave topay to borrow over a similar term, and with a similar security, the funds necessary toobtain anasset of a similar value to the right-of-use asset in a similar economic environment. Theincremental borrowing rate is based on the bank lending rate and adjusted by the Companyconsidering relevant factors.
(2) Subsequent measurement
After the commencement date, the Company shall measure the lease liability by:
① increasing the carrying amount to reflect interest on the lease liability;
② reducing the carrying amount to reflect the lease payments made;
③ remeasuring the carrying amount to reflect any reassessment or lease modificationsAfter the lease commencement date, lease payment shall be remeasured if thefollowingcircumstances incurred, and the lease liability shall be remeasured at the present valuewhichis based on the revised lease payment and revised discounting rate. The Companyshallremeasure the lease liability to reflect changes to the lease payments. A lessee shallrecognizethe amount of the remeasurement of the lease liability as an adjustment to theright-of-useasset. However, if the carrying amount of the right-of-use asset is reduced to zero andthere isa further reduction in the measurement of the lease liability, a lessee shall recognize anyremaining amount of the remeasurement in profit or loss.
① change of in-substance fixed payments (subject to original discounting rate)
②change of amounts expected to be payable under residual value guarantees
③ change of an index or a rate used for future lease payments
④ change in assessment of a buy option
The interest expense during each period of the lease term shall be included in the currentprofit and loss, except for those that should be capitalized.
26.Provisions
(1) Recognition principles of provision
When obligations related to external guarantees, pending actions or arbitration, productquality assurance, onerous contracts, reorganization and contingencies satisfy the following threeconditions, 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 theCompany; and
c) 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 ofall the outcomes within this range are equal, the best estimate shall be determined at the medianof 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 at the mostlikely outcome.
ii. If the contingency involves two or more items, the best estimate should bedeterminedaccording to all the possible outcomes with their relevant probabilities.
27. Share-based payment
Share-based payment is classified as equity-settled share-based payment and cash- settledshare-based payment.
(1) Accounting treatment on the date of granting
The Company does not make any accounting treatment on the date of granting, neither forequity-settled share-based payment nor for cash-settled share-based payment, except that theright of the share-based payment can be exercised immediately.
(2) Accounting treatment on each balance sheet date within vesting period
On each balance sheet date within vesting period, the Company records the service providedby employees or other party as cost and expense, and recognizes equity or liability at the sametime.
For the share-based payment attached with market conditions, once employees satisfy allconditions except market conditions, the service acquired can be recognized. If the performancecondition is not market condition, the estimate for previous periods can be revised when thevesting period is determined and subsequent information shows that the estimate for conditionsof exercising rights requires adjustments.
For equity-settled share-based payment related with employees, charge the service into costs,expenses and capital reserve (other capital reserve), using the fair value of the equity instrumenton the date of granting. The subsequent changes of fair value should not be recognized. Forcash-settled share-based payment related with employees, recalculate fair value of the equityinstrument at each balance sheet date and recognize related costs, expenses and employeebenefit payable.
At each balance sheet date within vesting period, the Company makes the best estimate andrevises the number of equity instrument that can be exercised according to the latest subsequentinformation 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 cumulativeamount of costs and expenses that should be recognized by this period and then deduct thecumulative amount already recognized in the previous period. The balance is the amount of costand expense that should be recognized in the current period.
(3) Accounting treatment after the date when rights can be exercised
For equity-settled share-based payment, after the date when rights can be exercised, noadjustment shall be made to the total amount of the cost expense and equity already recognized.The Company recognizes share capital and capital premium, and carry forward the capital reserve(other capital reserve) recognized within vesting period at the he date when rights can beexercised.
For cash-settled share-based payment, the Company shall not recognize costs and expenses.The change of fair value of liability (employee benefit payable) should be recorded into currentprofit or loss (profit or loss arising from fair value changes) after the date when rights can beexercised.
(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 for check. At eachbalance sheet date within vesting period, charge the employee service acquired into costs andexpenses, and meanwhile increase capital reserve (other capital reserve), using fair value of theequity instrument at the date of granting. When the employee exercises the right to buy theCompany’s shares and receives the amount, write off the cost of treasury stock delivered to theemployee and the cumulative amount of capital reserve (other capital reserve) recognized withinthe vesting period, meanwhile the balance adjusting capital reserve (share capital premium).
28.Revenue
Accounting policies adopted in revenue recognition and measurement
(1) Principle and measurement method of revenue recognition
a) Revenue recognition
The Company has fulfilled its contractual performance obligation to recognize revenue whenthe customer acquires control of the relevant goods. On the beginning date of the contract, theCompany evaluates the contract, identifies the individual performance obligations contained inthe contract, and determines whether the individual performance obligations are performedwithin a certain period of time or at a certain point. Then, the Company recognizes the revenuewhen the individual performance obligations are fulfilled.
b) Revenue measurementIf the contract contains two or more performance obligations, the Company shall, on thecommencement date of the contract, apportion the transaction price to each single performanceobligation according to the relative proportion of the separate selling price of the commodity orservice committed by each single performance obligation, and measure the revenue according tothe transaction price apportioned to each single performance obligation.In determining thetransaction price, the Company will take into account the impact of variable consideration,material financing elements existing in the contract, non-cash consideration and customerconsideration payable, and it is assumed that the goods will be transferred to the customer inaccordance with the provisions of the existing contract and that the contract will not be canceled,renewed or changed.
(2) Specific revenue recognition policies
a) Sales contractThe 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 the customerand the control of the goods is transferred. For export sales business, the Company recognizes therevenue after the goods are delivered and the customs clearance procedures are completed.According to the marketing policy, and the dealer sales of final product, the Company givesthe dealer a percentage discount, and regularly or irregularly settles with dealers. At the time ofsettlement, the discounts are recorded in a sales invoice issued. The net amount of invoice valueafter the deduction of the discount sales income is recognized as revenue according to the accrualprinciple. The discounts that have occurred and have not yet been settled at the end of thecurrent period shall be taken provision from the sales revenue and recorded into the contractliabilities.b) Service ContractThe service contract provided by the Company contains the performance obligation of thelease service provided. Since the customer obtains and consumes the economic benefits broughtby the performance of the contract at the same time, it is regarded as the performance obligationperformed within a certain period of time and is equally apportioned and confirmed during theservice provision.
29. Government grants
(1) Types of government grants
Government grants are monetary assets and non-monetary assets acquired free of charge bythe Company from the government, including government grants related to assets andgovernment 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 and constructing or otherways.
Government grants related to income are government grants other than government grantsrelated 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 receivedor receivable amount.
b) If a government grant is a non-monetary asset, it shall be measured at its fairvalue; and ifits fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount (anominal 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 relatedassets or recognized as deferred income at the actual entry amount on acquisition. Governmentgrants recognized as deferred income shall be allocated evenly over the useful lives of therelevant assets and included in the current profit or loss. Government grants measured at thenominal amount shall be directly included in current profit and loss.
b) Government grants related to income shall be separately handled accordingto thefollowing circumstances:
i. If government grants related to income are used to compensate the Company’s relevantexpenses or losses in future periods, such government grants should be recognized as deferredincome on acquisition and be included into the current profit and loss or written off of the relatedcosts when the relevant expenses, losses are recognized.
ii. If government grants related to income are used to compensate the
Company’s relevant expenses or losses incurred, such government grants are directlyincluded into the current profit and loss on acquisition or written off of the related costs.
c) Government grants related to assets and related to income are receivedtogether, shall betreated separately. If it is hard to separate, government grants shall be treated as related toincome as a whole.
d) Government grants related to daily operation shall be recoded in otherincome or writtenoff relevant expenses, costs. Government grants unrelated to daily operation shall be recorded innon-operating income. Financial subsidy funds directly allocated to the company shall be offsetthe relevant borrowing costs.
e) Government grants already recognized required to be refunded shall behandled accordingto 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 writtendown and the exceeding part is recorded in the currentprofit and loss.
iii. If there is no related deferred income, the exceeding part is directly included in the currentprofit and loss.
30. 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. On the balancesheet date, the Company analyzes and compares the book value of the assets and liabilities andthe tax base. If there are temporary differences in book value of the assets and liabilities and thetax base, under the circumstance that the temporary differences incur in the current period andmeet the recognition criteria, the Company shall respectively recognize taxable temporarydifferences or deductible temporary differences as deferred tax liability or deferred tax assets.
b) Recognition basis of deferred tax assets
i. Deferred tax assets incurred from deductible temporary differences are recognized to theextent that they shall not exceed the taxable income probably obtained in future periods to beagainst the deductible temporary difference. In determining the taxable income probablyobtained in future periods, including the taxable income from normal production and operationactivities in future periods and the increase of taxable income due to the reversal of taxabletemporary differences during the period of reversal of deductible temporary differences.
ii. For deductible losses and tax credits that can be carried forward to the next years, theCompany is likely to recognize the corresponding deferred tax assets to the extent that the assetsshall not exceed the taxable income in the future for deducting deductible losses and tax creditsand that are probably obtained by the Company.
iii. On the balance sheet date, the Company reviews the book value of deferred tax assets. If itis probably unable to obtain sufficient taxable income in the future period to offset the benefits ofthe deferred tax assets, the Company shall write down the book value of the deferred tax assets;when it is probable to obtain sufficient taxable income, the write-downs shall be reversed.
c) Recognition basis of deferred tax liabilities
The Company recognizes the current and previous taxable temporary differences payable but
unpaid as deferred tax liabilities. But they exclude temporary differences arising from goodwill;transactions which are formed other than from business combinations and neither affect theaccounting profits nor affect taxable income at the 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 are measuredat the applicable tax rate during the period of expected recovery of the assets or liquidation ofthe liabilities in accordance with the provisions of the tax law.b) Where the applicable tax rate changes, the Company remeasures deferred tax assets anddeferred tax liabilities recognized, except for those incurred in transactions or events directlyrecognized in the owner’s equity, of which the effect shall be included in the income tax expensesin the current period when the rate changes.c) When the Company measures the deferred tax assets and deferred tax liabilities, the taxrate and tax base in consistent with the expected recovery of assets or liquidation of liabilitiesshall be adopted.d) Deferred tax assets and deferred tax liabilities of the Company shall not be discounted.
31. Lease
(1) Accounting treatment for operating lease
According to the nature of the assets, the company will include the assets used as operatinglease in the relevant items of the balance sheet. The Company shall add initial direct costsincurred in obtaining an operating lease to thecarrying amount of the underlying asset andrecognize those costs as an expense over thelease term on the same basis as the lease income.Lease payment received shall be recognized as lease income on a straight-line basis withintheperiod. The depreciation policy for depreciable underlying fixed assets subject to operatingleasesshall be consistent with the lessor ’ s normal depreciation policy for similar assets.Amortization for other underlying assets subject to operating lease shall be onreasonablesystematic basis. The variable lease payments obtained by the company related tooperating leases, which arenot included in the lease payment received, shall be included in thecurrent profit and losswhen actually incurred.
A lessor shall account for a modification to an operating lease as a new lease fromtheeffective date of the modification, considering any prepaid or accrued lease paymentsrelatingto the original lease as part of the lease payments for the new lease.
(2) Accounting treatment for finance lease
At the commencement date of the lease term, the Company recognizes the finance leasereceivable at the net value of leaseinvestment (the sum of the unguaranteed residual value andthe present value of the lease receipts not yet received at thecommencement date of the leaseterm that are discounted at the interest rate in the lease) and derecognizes the finance leaseasset. Over the term of the relevant lease, the Company calculates and recognizes interest incomebased on the interest rate in the lease.
The company shall account for a finance lease modification as a separate lease if bothcondition are satisfied: ① the modification increases the scope of the lease by adding the rightto use one or more underlying assets or extending the contractual lease term. ② theconsideration for the lease increases by an amount commensurate with the stand-alone priceforthe increase in scope or the contractual lease term extension and any appropriateadjustments tothat stand-alone price to reflect the circumstances of the particular contract.
32. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√ Applicable N/A
Contentandreasonofchangesin
accountingpolicies
Contentandreasonofchangesin accountingpolicies | Procedure for examination and approval | Notes |
Since January 1, 2021 (the “First AdoptionDate”), the Company has implemented theAccounting Standards for Business EnterprisesNo. 21 – Leases revised by the Ministry ofFinance in December ,2018 (hereinafter referredto as the “New Lease Standards,” and the LeaseStandards before the revision referred to as the“Original Lease Standards”).
Since January 1, 2021 (the “First Adoption Date”), the Company has implemented the Accounting Standards for Business Enterprises No. 21 – Leases revised by the Ministry of Finance in December ,2018 (hereinafter referred to as the “New Lease Standards,” and the Lease Standards before the revision referred to as the “Original Lease Standards”). | According to the requirements of the new leasing standards, the comparative financial statements do not be retroactively adjusted. |
(2) Changes in significant accounting estimates.
Applicable √ N/A
(3) Since 2021, the first implementation of new leasing standards will be adjusted toimplement the items related to financial statements at the beginning of the year.
√ Applicable N/A
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 2020 | Balance as at 1 January 2021 | Adjustment |
Current assets: | |||
Cash and Bank Balances | 7,243,186,362.29 | 7,243,186,362.29 | |
Settlementreserves | |||
Lending funds | |||
Held-for-trading financial assets | 14,301,978,905.17 | 14,301,978,905.17 | |
Derivative financialassets | |||
Notes receivables | 613,496,333.71 | 613,496,333.71 | |
Accountsreceivables | 4,225,230.90 | 4,225,230.90 | |
Account receivables financing | |||
Prepayment | 9,358,846.48 | 9,358,846.48 | |
Premiums receivable | |||
Reinsurance accounts receivable | |||
Reinsurance contract reserve | |||
Other receivables | 30,318,938.67 | 30,318,938.67 | |
Including:Interests receivable | |||
Dividends receivable | |||
Buying back the sale of financial assets | |||
Inventories | 14,852,694,146.30 | 14,852,694,146.30 | |
Contractassets | |||
Assetsheld for sale | |||
Non-current assetsdue withinone year | |||
Other currentassets | 182,837,070.99 | 182,837,070.99 | |
Total current assets | 37,238,095,834.51 | 37,238,095,834.51 | |
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 | 29,528,377.16 | |
Investment in other equity instruments | |||
Other non-current financial assets | 6,366,958,225.81 | 6,366,958,225.81 | |
Investment property | |||
Fixedassets | 6,882,953,634.34 | 6,882,953,634.34 | |
Construction in progress | 223,468,482.24 | 223,468,482.24 | |
Productive biological assets | |||
Oil andgasassets | |||
Right-of-use Assets | 8,610,167.63 | 8,610,167.63 | |
Intangible assets | 1,713,526,693.10 | 1,713,526,693.10 | |
Development expenses | |||
Goodwill | 276,001,989.95 | 276,001,989.95 |
Long-term prepaid expenses
Long-term prepaid expenses | 127,071.76 | 127,071.76 | |
Deferred tax assets | 925,921,403.51 | 925,921,403.51 | |
Other non-currentassets | 209,677,594.21 | 209,677,594.21 | |
Totalnon-current assets | 16,628,163,472.08 | 16,636,773,639.71 | 8,610,167.63 |
Total assets | 53,866,259,306.59 | 53,874,869,474.22 | 8,610,167.63 |
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 | 1,151,871,136.29 | |
Advance from customer | |||
Contract liabilities | 8,801,346,891.32 | 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 | 196,241,487.31 | |
Taxes payable | 2,152,806,156.43 | 2,152,806,156.43 | |
Other payables | 1,556,699,290.45 | 1,556,699,290.45 | |
Including: Interests payable | |||
Dividends payable | |||
Handling charges and commissions payable | |||
Reinsurance accounts payable | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | 2,083,914.78 | 2,083,914.78 | |
Other current liabilities | 798,216,651.49 | 798,216,651.49 | |
Total current liabilities | 14,657,181,613.29 | 14,659,265,528.07 | 2,083,914.78 |
Non-current liabilities: | |||
Insurance contract reserves | |||
Long-term loans | 36,360.00 | 36,360.00 | |
Bonds payable | |||
Including: Preference shares | |||
Perpetual bonds | |||
Lease liabilities | 6,526,252.85 | 6,526,252.85 | |
Long-term payables | 197,049,341.93 | 197,049,341.93 | |
Long-term payroll payables | |||
Accrued liabilities | |||
Deferred incomes | 85,999,500.00 | 85,999,500.00 | |
Deferred tax liabilities | 456,339,414.38 | 456,339,414.38 | |
Other non-current liabilities | |||
Totalnon-currentliabilities | 739,424,616.31 | 745,950,869.16 | 6,526,252.85 |
Total liabilities | 15,396,606,229.60 | 15,405,216,397.23 | 8,610,167.63 |
Shareholders' equity | |||
Sharecapital | 1,506,988,000.00 | 1,506,988,000.00 | |
Other equity instruments | |||
Including: preference shares | |||
Perpetual bonds |
Capital reserves
Capital reserves | 741,532,550.13 | 741,532,550.13 | |
Less: Treasury shares | 1,002,128,680.79 | 1,002,128,680.79 | |
Other comprehensive incomes | -5,213,248.93 | -5,213,248.93 | |
Special reserves | |||
Surplus reserves | 753,494,000.00 | 753,494,000.00 | |
General riskreserve | |||
Retained Earnings | 36,489,911,363.13 | 36,489,911,363.13 | |
Total equity attributable to owners of the parent company | 38,484,583,983.54 | ||
Non-controlling interests | -14,930,906.55 | -14,930,906.55 | |
Total owners' equity | 38,469,653,076.99 | 38,469,653,076.99 | |
Total liabilities and owners' equity | 53,866,259,306.59 | 53,874,869,474.22 | 8,610,167.63 |
Adjustmentstatement
Balance Sheet of Parent Company
Unit: CNY
Assets | Balanceasat31December2020 | Balanceasat1January2021 | Adjustment |
Currentassets: | |||
Cash and Bank balances | 5,713,353,085.92 | 5,713,353,085.92 | |
Held-for-trading financial assets | 2,096,497,598.93 | 2,096,497,598.93 | |
Derivative financial assets | |||
Notes receivable | 74,100,000.00 | 74,100,000.00 | |
Accounts receivable | 387,657,700.12 | 387,657,700.12 | |
Receivables for Financing | |||
Prepayment | 84,206,238.58 | 84,206,238.58 | |
Other receivables | 10,403,769,305.69 | 10,403,769,305.69 | |
Including: Interests receivable | |||
Dividends receivable | 1,775,818,203.33 | 1,775,818,203.33 | |
Inventories | 10,343,443,087.16 | 10,343,443,087.16 | |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | |||
Total current assets | 29,103,027,016.40 | 29,103,027,016.40 | |
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 | 2,480,599,923.11 | |
Investment property | |||
Fixed assets | 4,416,370,356.00 | 4,416,370,356.00 | |
Construction in progress | 58,004,537.10 | 58,004,537.10 | |
Productive biological assets |
Oil and gas assets
Oil and gas assets | |||
Right-of-use assets | 1,886,330.63 | 1,886,330.63 | |
Intangible assets | 1,208,261,829.54 | 1,208,261,829.54 | |
Development expenses | |||
Goodwill | |||
Long-term deferred expenses | |||
Deferred tax assets | 8,032,095.76 | 8,032,095.76 | |
Other non-currentassets | 173,867,010.21 | 173,867,010.21 | |
Total Non-current Assets | 16,309,427,129.95 | 16,311,313,460.58 | 1,886,330.63 |
Total Assets | 45,412,454,146.35 | 45,414,340,476.98 | 1,886,330.63 |
Current liabilities: | |||
Short-termloans | |||
Financial liabilities held for trading | |||
Derivative financial liabilities | |||
Notes payable | |||
Accounts payable | 839,199,956.37 | 839,199,956.37 | |
Advance from customer | |||
Contract liabilities | 10,764,681,770.37 | 10,764,681,770.37 | |
Employee benefits payable | |||
Taxes payable | 809,734,252.60 | 809,734,252.60 | |
Other payables | 186,265,132.79 | 186,265,132.79 | |
Including: Interests payable | |||
Dividends payable | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | 421,821.31 | 421,821.31 | |
Other current liabilities | 1,396,504,456.42 | 1,396,504,456.42 | |
Total current liabilities | 13,996,385,568.55 | 13,996,807,389.86 | 421,821.31 |
Non-current liabilities: | |||
Long-term loans | 36,360.00 | 36,360.00 | |
Bonds payable | |||
Including: preference shares | |||
Perpetual bonds | |||
Lease liabilities | 1,464,509.32 | 1,464,509.32 | |
Long-term payables | 144,254,229.73 | 144,254,229.73 |
Long-term payroll payables
Long-term payroll payables | |||
Provisions | |||
Deferred incomes | 5,000,000.00 | 5,000,000.00 | |
Deferred tax liabilities | 387,147,470.28 | 387,147,470.28 | |
Other non-current liabilities | |||
Totalnon-current liabilities | 536,438,060.01 | 536,438,060.01 | |
Total liabilities | 14,532,823,628.56 | 537,902,569.33 | 1,886,330.63 |
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 shares | 1,002,128,680.79 | 1,002,128,680.79 | |
Other comprehensive incomes | |||
Special reserves | |||
Surplus reserves | 753,494,000.00 | 753,494,000.00 | |
Retained earnings | 28,279,648,717.65 | 28,279,648,717.65 | |
Total owners' equity | 30,879,630,517.79 | 30,879,630,517.79 | |
Total liabilities and owners' equity | 45,412,454,146.35 | 45,414,340,476.98 | 1,886,330.63 |
Adjustment statementFor operating lease prior to the date of initial adoption, the company measured the lease liabilityon the date of initial adoption based on the current value of the remaining lease paymentsdiscounted according to the lessee's incremental borrowing rate on the date of initial adoptionand measured the right-of-use asset at an amount equal to the lease liability. The weightedaverage of the incremental borrowing rate adopted was 4.75%.
III. Taxes
1. Major tax types and rates
Tax type | Taxation basis | Tax rate |
Value-added tax (VAT) | Output tax-deductible input tax | 13%、9%、6%、19% |
Consumption tax | Sales revenue 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 corporate income taxrates
Companyname
Companyname | Applicabletax rate |
JSSJ Industry (HK) Holdings Co., Ltd. | 16.50% |
HongKong Zhaiugou International Trade Co., Ltd. | 16.50% |
ZYGE-Commerce HK Limited | 16.50% |
Yanghe HongKong Distillery Co., Ltd. | 16.50% |
Yanghe CHILE SPA | 27% |
Yanghe International Investment Ltd. | 0% |
ZYG LTD. | 0% |
ZYG TECHNOLOGY INVESTMENT LTD | 0% |
2. Other information
(1) Ad valorem taxation: liquor consumption tax shall be calculated and paid according to 20%of the approved sales amount. The taxable liquor commissioned for processing shall be taxedaccording to the sales price of similar liquor of the entrusted party, and if there is no sales price ofsimilar liquor, the taxable liquor shall be computed according to the composition assessableprice.Consumption tax on red wine (wine) is calculated at 10% of sales.
(2) Quantity-based taxation: liquor consumption tax is calculated and paid according to CNY 1per kg.
(3) The corporate income tax is calculated and paid at 25% of the taxable income amount. Theprofits tax rate applicable to JSSJ Industry (HK) Holdings Co., Ltd.,Hong Kong ZhaiugouInternational Trade Co.,Ltd., ZYG E-Commerce HK Limited and Yanghe Hong Kong Distillery Co., Ltd.is 16.50%, and the income tax rate applicable to Yanghe Chile SPA is 27%.Yanghe InternationalInvestment Ltd, ZYG Ltd and ZYG Technology Investment Ltd are not required to pay any taxes tothe government according to local laws.
IV. Notes to items in the consolidated financial Statements (all currency unit
is CNY, except other statements)
1. Cash and Bank Balance
Unit: CNY
Itemes | Closing balance | Opening balance |
Cash | 3,549.27 | 4,434.27 |
Bank deposit | 20,894,755,169.16 | 7,201,133,719.50 |
Other cash and cash equivalent | 61,072,291.69 | 42,048,208.52 |
Total | 20,955,831,010.12 | 7,243,186,362.29 |
Including: total deposit outbound | 80,215,579.77 | 67,157,360.95 |
Other notesOn December 31
st
, 2021, the interest receivable for time deposit is CNY 108,827,459.75. Theending balance of other currency funds is mainly the funds deposited in Tenpay, Alipay and otherplatforms.Liquor manufacturing enterprises should disclose in detail whether there is any specialinterestarrangement such as the establishment of capital co-management accounts with relevantparties.
√ Applicable □ N/A
The disclosure requirements of food and wine manufacturing-related industries in the Guidelinesfor Self-regulation NO.3 of Listed Companies of Shenzhen Stock Exchange -Industry InformationDisclosure shall be observed.N/A
2. Held-for-trading financial assets
Unit: CNY
Item | Closing balance | Opening balance |
Financial asset at fair value through profit and loss | 10,953,894,328.01 | 14,301,978,905.17 |
Including: |
Equity instrument
Equity instrument | 47,300,000.00 | |
Debt instrument | 10,906,594,328.01 | 14,301,978,905.17 |
Including: | ||
Total | 10,953,894,328.01 | 14,301,978,905.17 |
Other notesDebt instruments are bank financial products and trust financial products that mature within oneyear
3. Notes receivable
(1) Classification of notes receivable
Unit: CNY
Item | Closing balance | Opening balance |
Bank acceptance bill | 663,849,328.28 | 613,496,333.71 |
Total | 663,849,328.28 | 613,496,333.71 |
Unit: CNY
Item
Item | Closing balance | Opening balance | ||||||||
Book balance | Provision for baddebt | 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 receivable by portfolio | 663,849,328.28 | 100.00% | 663,849,328.28 | 613,496,333.71 | 100.00% | 613,496,333.71 | ||||
Including: | ||||||||||
Bank acceptance bill portfolio | 663,849,328.28 | 100.00% | 663,849,328.28 | 613,496,333.71 | 100.00% | 613,496,333.71 | ||||
Total | 663,849,328.28 | 100.00% | 663,849,328.28 | 613,496,333.71 | 100.00% | 613,496,333.71 |
Provision for bad debt by individual: 0.00
Unit: CNY
Item | Closing balance | |||
Book balance | Provision for baddebt | Proportion | Reason |
Provision for bad debt by portfolio:
Unit: CNY
Item | Closing balance | ||
Book balance | Provision for bad debt | Proportion | |
Bank acceptance bill portfolio | 663,849,328.28 | ||
Total | 663,849,328.28 |
Notes to determine provision for bad debt by portfolio:
Provision for bad debt by portfolio:
Unit: CNY
Item | Closing balance | ||
Book balance | Provision for baddebt | 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 about provision for bad debt:
□ Applicable √ N/A
(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 |
(3) Notes receivable that have been endorsed to other parties by the Company but have not expired at the end of year
Unit: CNY
Item
Item | Derecognition at period end | Not derecognition at period end |
Bank acceptance bill | 547,802,328.28 | |
Total | 547,802,328.28 |
4. Accounts receivable
(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 | 4,082,161.80 | 100.00% | 2,834,211.89 | 69.43% | 1,247,949.91 | 6,902,858.86 | 100.00% | 2,677,627.96 | 38.79% | 4,225,230.90 |
Including: | ||||||||||
Risk portfolio | 4,082,161.80 | 100.00% | 2,834,211.89 | 69.43% | 1,247,949.91 | 6,902,858.86 | 100.00% | 2,677,627.96 | 38.79% | 4,225,230.90 |
Other portfolio | ||||||||||
Total | 4,082,161.80 | 100.00% | 2,834,211.89 | 69.43% | 1,247,949.91 | 6,902,858.86 | 100.00% | 2,677,627.96 | 38.79% | 4,225,230.90 |
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:
Unit: CNY
Overdue years | Closing balance | ||
Accounts receivables | Provision for bad debt | Proportion of provision | |
Risk portfolio | 4,082,161.80 | 2,834,211.89 | 69.43% |
Notes to determine provision for bad debt by portfolio:
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 accounts receivables is calculated according to the general modelof expected credit loss, please refer to the disclosure method of other receivables to disclose therelevant information about provision for bad debt:
□ Applicable √ N/A
Disclosed by aging
Unit: CNY
Aging | Book value |
Within 1 year (including 1 year) | 960,932.36 |
1-2 years | 123,460.80 |
2-3 years | 27,021.00 |
Over 3 years | 2,970,747.64 |
3-4 years | 21,003.29 |
4-5 years | 863,061.77 |
Over 5 years | 2,086,682.58 |
Total | 4,082,161.80 |
The disclosure requirements of food and wine manufacturing-related industries in theGuidelines for Self-regulation NO.3 of Listed Companies of Shenzhen Stock Exchange -IndustryInformation Disclosure shall be observed
(2) Provision for bad debt that is accrued, recovered or reversed during this period
Provision 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 for bad debt of accounts receivable | 2,677,627.96 | 174,467.73 | 17,883.80 | 2,834,211.89 | ||
Total | 2,677,627.96 | 174,467.73 | 17,883.80 | 2,834,211.89 |
Significant amount of reversal or recovery during this period
Unit: CNY
Company name | Amount recovered or reversed | Method |
(3) Provision for bad debt that is actually written off during this period
Item | Write-off amount |
Accounts receivable | 17,883.80 |
Significant amount of write off during this period
Entity
Entity | Nature of accounts receivable | Write-off amount | Reason for write-off | Write-off procedures performed | Whether the amount arises from related-party transactions |
(4) Top five entities with the largest balance of the accounts receivable
Unit: CNY
Company's name | Closing balance | Proportion in the total accounts receivable | Provision amount |
First | 600,000.00 | 14.70% | 600,000.00 |
Second | 454,356.93 | 11.13% | 454,356.93 |
Third | 411,676.78 | 10.08% | 12,350.30 |
Fourth | 135,824.00 | 3.33% | 4,074.72 |
Fifth | 118,052.00 | 2.89% | 118,052.00 |
Total | 1,719,909.71 | 42.13% |
5. Receivables for Financing
Item | Closing Balance | Opening Balance |
Bank acceptance bill | 222,793,060.40 | |
Total | 222,793,060.40 |
Increase or decrease of receivable financing for the current period and changes in its fair value.
□ Applicable √N/A
If a provision for impairment is made for receivable financing in accordance with the generalmodel of expected credit losses, please disclose relevant information on the provisions forimpairment with reference to the disclosure method of other receivables.
□ Applicable √N/A
6. Prepayment
(1) Analysis by aging
Unit: CNY
Aging | Closing balance | Opening balance | ||
Amount | Proportion | Amount | Proportion | |
Within 1 year | 8,077,156.80 | 85.85% | 7,941,357.88 | 84.85% |
1-2 years | 154,508.03 | 1.64% | 847,516.09 | 9.06% |
2-3 years | 757,130.80 | 8.05% | 272,564.91 | 2.91% |
Over 3 years | 419,972.49 | 4.46% | 297,407.60 | 3.18% |
Total | 9,408,768.12 | -- | 9,358,846.48 | -- |
Significant prepayment aging over 1 year without settlement on time:
No significant prepayment aging over 1 year are recorded in the ending balance.
(2) Top five entities with the largest balances of prepayment
Company’sname | Closing balance | Proportion in the total prepayment (%) |
First | 2,145,098.45 | 22.80 |
Second | 1,415,824.05 | 15.05 |
Third | 1,250,222.55 | 13.29 |
Fourth | 304,804.68 | 3.24 |
Fifth | 300,000.00 | 3.19 |
Total | 5,415,949.73 | 57.56 |
7.Other receivables
Unit: CNY
Item
Item | Closing balance | Opening balance |
Other receivables | 11,520,008.85 | 30,318,938.67 |
Total | 11,520,008.85 | 30,318,938.67 |
(1) Other receivables
a) Other receivables by nature
Unit: CNY
Nature of other receivables | Closing balance | Opening balance |
Savings deposits (infringement dispute) | 22,839,924.27 | 65,747,048.93 |
Deposit | 18,258,461.27 | 16,298,680.14 |
Cooperation | 3,910,000.00 | 3,910,000.00 |
Business loans, petty cash and others | 21,280,921.11 | 19,800,887.50 |
Total | 66,289,306.65 | 105,756,616.57 |
b) Provision for bad debt
Unit: CNY
Bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit losses in the next 12 months | Expected credit losses for lifetime (No credit loss occurred) | Expected credit losses for lifetime (Credit loss occurred) | ||
Balance as at 1 January 2021 | 245,645.15 | 75,192,032.75 | 75,437,677.90 | |
Change of opening balance as at 1 January 2021 in current period | —— | —— | —— | —— |
Provision in 2021 | 160,762.49 | 160,762.49 | ||
Recovery in 2021 | 12,962,717.50 | 12,962,717.50 | ||
Write-off in 2021 | 7,866,105.70 | 7,866,105.70 | ||
Other changes | -319.39 | -319.39 | ||
Balance as at 31 December 2021 | 406,088.25 | 54,363,209.55 | 54,769,297.80 |
Significant changes of loss provision in the book balance during this period.
□ Applicable √ No applicable
Disclosure by aging
Unit: CNY
Aging | Book value |
Within 1 year (including 1 year) | 8,907,613.86 |
1-2 years | 1,986,347.51 |
2-3 years | 429,783.06 |
Over 3 years | 54,965,562.22 |
3-4 years | 3,048,137.40 |
4-5 years | 2,726,619.68 |
Over 5 years | 49,190,805.14 |
Total | 66,289,306.65 |
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
Provision | Recoveredor reversed | Write-off | Otherchanges | |||
Other receivables bad debt provision | 75,437,677.90 | 160,762.49 | 12,962,717.50 | 7,866,105.70 | -319.39 | 54,769,297.80 |
Total | 75,437,677.90 | 160,762.49 | 12,962,717.50 | 7,866,105.70 | -319.39 | 54,769,297.80 |
Significant amount of reversal or recovery during this period:
Unit: CNY
Entity | Amount of reversal or recover | Method |
Industrial and Commercial Bank of China Ltd, Henan Branch | 12,009,031.70 | Recovery of judgment |
Total | 12,009,031.70 | -- |
d) Provision for bad debt that is actually written off during this period
Item | Write-off amount |
Other receivables | 7,866,105.70 |
Significant amount of write-off during this period
Company name | Nature of accounts receivable | Write-off amount | Cause of write-off | Verification procedures performed | Related party transactions |
Industrial and Commercial Bank of China Ltd., Henan Branch | Savings deposits (infringement dispute) | 7,863,105.70 | Judgments | No |
e) Top five entities with the largest balances of other receivables
Unit: CNY
Company’s name | Category | Closing balance | Aging | Proportion in total receivable | Provisioning amount at period end |
Industrial Commercial Bank of China Ltd., Kaifeng Haode branch | Savings deposit (Infringement dispute) | 22,839,924.27 | Over 5 years | 34.45% | 22,839,924.27 |
Bankruptcy administrator of JiangsuJuntai Properties Co., Ltd., Suqian Guotai Department Store Co., Ltd. | Deposit | 15,000,000.00 | Over 5 years | 22.63% | 15,000,000.00 |
Nanjing Peilong Sports Culture Co., Ltd. | Cooperation | 3,910,000.00 | Over 5 years | 5.90% | 3,910,000.00 |
Advance money for another | Advance money for another | 2,379,354.55 | 4-5 years | 3.59% | 2,379,354.55 |
Advance money for another | Advance money for another | 1,317,920.66 | Over 5 years | 1.99% | 1,317,920.66 |
Total | -- | 45,447,199.48 | -- | 68.56% | 45,447,199.48 |
8. Inventories
Did the Company need to comply with the disclosure requirements on the periodNo
(1) Categories of Inventories
Unit: CNY
Category | Closing balance | Opening balance | ||||
Book balance | Provision for stock obsolescence | Bookvalue | Book balance | Provision for stock obsolescence | Book value |
Raw material
Raw material | 438,692,292.37 | 15,300,348.33 | 423,391,944.04 | 326,289,956.43 | 9,565,908.51 | 316,724,047.92 |
Working progress | 661,614,981.98 | 661,614,981.98 | 557,314,618.19 | 557,314,618.19 | ||
Stock goods | 2,632,674,836.85 | 2,632,674,836.85 | 1,582,637,195.62 | 1,582,637,195.62 | ||
Semi-finished goods | 13,085,411,678.94 | 13,085,411,678.94 | 12,396,018,284.57 | 12,396,018,284.57 | ||
Total | 16,818,393,790.14 | 15,300,348.33 | 16,803,093,441.81 | 14,862,260,054.81 | 9,565,908.51 | 14,852,694,146.30 |
The disclosure requirements of food and wine manufacturing-related industries in theGuidelines for Self-regulation NO.3 of Listed Companies of Shenzhen Stock Exchange -IndustryInformation Disclosure shall be observed.
(2) Provision for stock obsolescence and impairment provision of contract cost
Unit: CNY
Category | Opening book balance | Increases in currentperiod | Decreases in current period | Closing book balance | ||
Provision | Other | Recovery or reversal | Other | |||
Raw material | 9,565,908.51 | 7,175,293.45 | 1,440,853.63 | 15,300,348.33 | ||
Total | 9,565,908.51 | 7,175,293.45 | 1,440,853.63 | 15,300,348.33 |
Determination basis of net realizable values of inventories
i. In normal operation process, for merchandise inventories held directly for sale, includingstock commodities (finished goods) and materials for sale, their net realizable values aredetermined at their estimated selling prices minus their estimated selling expenses and relevanttaxes and surcharges.
ii. In normal operation process, for material inventories that need further processing, their netrealizable values are determined at the estimated selling prices of finished goods minus estimatedcosts to completion, estimated selling expenses and relevant taxes and surcharges.
iii. For inventories held to execute sales contract or service contract, their net realizable valuesare calculated on the basis of contract price. If the quantities of inventories specified in the salescontracts are less than the quantities held by the Company, the net realizable value of the excessportion of inventories shall be based on general selling prices.
iv. The materials held for production shall be measured at cost if the net realizable value of thefinished products is higher than the cost. If a decline in the value of materials shows that the netrealizable value of the finished products is lower than the cost, the materials shall be measured atthe net realizable value.
The recovery or reversal of stock obsolescence in the current period is the provision of stockobsolescence for raw materials consumed in the current period.
9. Other current assets
Unit: CNY
Item
Item | Closing balance | Opening balance |
VATto be deducted | 131,525,820.12 | 168,810,154.82 |
Consumption tax to be deducted | 6,575,730.95 | 6,483,646.87 |
Advance payment of income tax | 4,903,640.51 | 7,543,269.30 |
Total | 143,005,191.58 | 182,837,070.99 |
10. 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 | Adjustmentsof other comprehensive income | Other changes in equity | Cash divided or profit declared | Provision for impairment | Other | ||||
Joint venture | |||||||||||
Diageo International Spirits Company Limited | 10,261,147.01 | -2,562,964.31 | 10,293.63 | 464,960.20 | 8,173,436.53 | ||||||
Subtotal | 10,261,147.01 | -2,562,964.31 | 10,293.63 | 464,960.20 | 8,173,436.53 | ||||||
Associatedenterprise | |||||||||||
JiangsuSu Wine Culture Transmission onCo, Ltd. | 4,527,209.85 | 742,014.54 | 530,400.00 | 321,445.37 | 5,060,269.76 | ||||||
Nanjing Hesong Culture Technology Co., Ltd. | 3,854,437.79 | -2,085.06 | 3,852,352.73 | ||||||||
Jiangsu Xinghe Investment | 10,885,582.51 | 4,771,755.78 | 15,657,338.29 |
ManagementCo., Ltd.
ManagementCo., Ltd. | |||||||||||
Subtotal | 19,267,230.15 | 5,511,685.26 | 530,400.00 | 321,445.37 | 24,569,960.78 | ||||||
Total | 29,528,377.16 | 2,948,720.95 | 10,293.63 | 530,400.00 | 786,405.57 | 32,743,397.31 |
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 tounrealized salesprofit of downstream transactions and exchange rate changes.
11.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 | 6,358,903,792.90 | 4,519,967,688.33 |
Debt instrument investment | 1,277,038,356.16 | 1,846,990,537.48 |
Total | 7,635,942,149.06 | 6,366,958,225.81 |
12.Fixed assets
Unit: CNY
Item | Closing balance | Opening balance |
Fixed Assets | 6,276,466,308.05 | 6,882,953,634.34 |
Total | 6,276,466,308.05 | 6,882,953,634.34 |
(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 | 8,169,474,047.45 | 3,217,850,290.13 | 69,597,255.79 | 420,401,169.28 | 11,877,322,762.65 |
2.Increase incurrent period | 17,621,033.19 | 66,976,766.21 | 544,141.53 | 17,689,492.30 | 102,831,433.23 |
(1) External purchase | 7,094,232.94 | 544,141.53 | 17,689,492.30 | 25,327,866.77 | |
(2) Transfer from construction in progress | 17,621,033.19 | 59,882,533.27 | 77,503,566.46 | ||
(3) Increase from business combination | |||||
3.Decrease in current period
3.Decrease in current period | 16,101,579.69 | 27,513,021.87 | 1,583,901.12 | 7,058,584.73 | 52,257,087.41 |
(1) Disposal or retirement | 16,101,579.69 | 27,513,021.87 | 1,583,901.12 | 7,058,584.73 | 52,257,087.41 |
(2) Decrease from business combination | |||||
4.Closing Balance | 8,170,993,500.95 | 3,257,314,034.47 | 68,557,496.20 | 431,032,076.85 | 11,927,897,108.47 |
Accumulated depreciation | |||||
1.Opening Balance | 2,654,250,125.55 | 1,927,915,277.17 | 55,259,614.83 | 356,944,110.76 | 4,994,369,128.31 |
2.Increase in current period | 386,432,739.83 | 276,405,380.96 | 5,739,693.64 | 24,471,682.69 | 693,049,497.12 |
(1) Provision | 386,432,739.83 | 276,405,380.96 | 5,739,693.64 | 24,471,682.69 | 693,049,497.12 |
3.Decrease in current period | 9,731,141.86 | 19,638,278.82 | 1,505,895.98 | 5,112,508.35 | 35,987,825.01 |
(1) Disposal or retirement | 9,731,141.86 | 19,638,278.82 | 1,505,895.98 | 5,112,508.35 | 35,987,825.01 |
4.Closing Balance | 3,030,951,723.52 | 2,184,682,379.31 | 59,493,412.49 | 376,303,285.10 | 5,651,430,800.42 |
Provisionforfixedassetimpairment | |||||
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 | 5,140,041,777.43 | 1,072,631,655.16 | 9,064,083.71 | 54,728,791.75 | 6,276,466,308.05 |
2.Opening 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) Investment properties without certification of rights
Item | Book value | Reason for not having the certification of rights |
Yanghe Blue-collar workers apartment | 31,100,054.23 | In process |
Yanghe 40,000-ton pottery jar warehouse | 166,631,404.46 | In process |
Yanghe workshop, etc. | 103,540,807.93 | In process |
Property of the subsidiary, etc | 15,709,603.48 | In process |
Total | 316,981,870.10 |
13.Construction in progress
Unit: CNY
Item
Item | Closing balance | Opening balance |
Construction in progress | 525,497,000.26 | 223,468,482.24 |
Total | 525,497,000.26 | 223,468,482.24 |
(1) Details of the construction in progress
Unit: CNY
Item | Closing balance | Opening balance | ||||
Book Balance | Provision for impairment | Bookvalue | Book Balance | Provision for impairment | Book value | |
Shuanggou packaging production line | 17,191,907.04 | 17,191,907.04 | 10,610,699.88 | 10,610,699.88 | ||
Intelligent brewing (Mellowness 125 workshop) project | 18,611,596.70 | 18,611,596.70 | ||||
Siyang base three-dimensional warehouse, packaging production line project | 1,100,810.08 | 1,100,810.08 | 1,090,909.09 | 1,090,909.09 | ||
40,000 tons of pottery jar warehouse project | 11,494,210.42 | 11,494,210.42 | 12,714,991.93 | 12,714,991.93 | ||
Nanjing operationcenterbuildingproject | 226,554,154.35 | 226,554,154.35 | 114,003,278.26 | 114,003,278.26 | ||
Sesame Fragrant Intelligent brewing Project (Workshop 115, District 3) | 51,649,644.39 | 51,649,644.39 | ||||
20,000 tons of pottery jar warehouse project | 23,661,457.42 | 23,661,457.42 | ||||
sewage treatment capacity expansion and reconstruction project | 14,832,564.56 | 14,832,564.56 | ||||
80,000 tons of pottery jar warehouse project | 7,146,540.68 | 7,146,540.68 | ||||
Comprehensive brewing plant | 4,798,126.18 | 4,798,126.18 | ||||
Phase II of Gui wine project | 43,619,689.76 | 43,619,689.76 | ||||
Other projects | 123,447,895.38 | 123,447,895.38 | 66,437,006.38 | 66,437,006.38 | ||
Total | 525,497,000.26 | 525,497,000.26 | 223,468,482.24 | 223,468,482.24 |
(2) Significant changes in construction in progress
Unit: CNY
Item | Budget (CNY 10,000) | Opening balance | Increase in current period | Transfer into fixed assets | Otherdecreases | Closing balance | Proportion of accumulative project inputing budget (%) | Progress | Interest capitalizationrate | Include: Capitalized interest for the period | Capitalization rate for the period | Source of funds |
Shuanggou packaging production line | 12,000.00 | 10,610,699.88 | 6,581,207.16 | 17,191,907.04 | 95.01% | Latestage | Other | |||||
Intelligent brewing (Mellowness 125 workshop) project | 4,500.00 | 18,611,596.70 | 8,007,528.20 | 26,619,124.90 | 86.64% | Latestage | Other |
Siyang basethree-dimensional warehouse,packaging production lineproject
Siyang base three-dimensional warehouse, packaging production line project | 4,100.00 | 1,090,909.09 | 9,900.99 | 1,100,810.08 | 64.97% | Latestage | Other | |||||
40,000 tons of pottery Jar warehouse project | 36,000.00 | 12,714,991.93 | 1,472,246.32 | 2,693,027.83 | 11,494,210.42 | 55.91% | Latestage | Other | ||||
Nanjing operationcenter building project | 80,000.00 | 114,003,278.26 | 112,550,876.09 | 226,554,154.35 | 35.81% | Middle stage | Other | |||||
Sesame Fragrant Intelligent brewing Project (Workshop 115, District 3) | 6,884.28 | 52,499,201.93 | 849,557.54 | 51,649,644.39 | 82.64% | Latestage | Other | |||||
20,000 tons of pottery jar warehouse project | 4,200.00 | 23,661,457.42 | 23,661,457.42 | 57.89% | Middle stage | Other | ||||||
sewage treatment capacity expansion and reconstruction project | 2,300.00 | 14,832,564.56 | 14,832,564.56 | 64.49% | Middle stage | Other | ||||||
80,000 tons of pottery jar warehouse project | 24,000.00 | 7,146,540.68 | 7,146,540.68 | 2.98% | Early stage | Other | ||||||
Comprehensive brewing plant | 4,000.00 | 4,798,126.18 | 4,798,126.18 | 12.00% | Early stage | Other | ||||||
Phase II of Gui wine project | 13,954.02 | 43,619,689.76 | 43,619,689.76 | 31.26% | Middle stage | Other | ||||||
Total | 191,938.30 | 157,031,475.86 | 275,179,339.29 | 30,161,710.27 | 402,049,104.88 | -- | -- | -- |
14.Right-of-use Assets
Unit: CNY
Items | Building and construction | total |
Total original carrying amount | ||
1. Opening balance (restated) | 8,610,167.63 | 8,610,167.63 |
2. Increased | 16,509,488.52 | 16,509,488.52 |
(1) New Lease | 16,509,488.52 | 16,509,488.52 |
3. Decreased | ||
4. Closing balance | 25,119,656.15 | 25,119,656.15 |
Accumulated depreciation | ||
1.Opening balance (restated) | - | |
2. Increased | 5,509,542.40 | 5,509,542.40 |
(1) Provisions
(1) Provisions | 5,509,542.40 | 5,509,542.40 |
3. Decreased | ||
(1) The lease contract expires or terminates early | ||
4.Closing balance | 5,509,542.40 | 5,509,542.40 |
Provision for right-of-use assets impairment | ||
1.OpeningBalance | ||
2.Increase in current period | ||
(1) Provision | ||
3.Decrease in current period | ||
(1) Disposal or retirement | ||
4. Closing balance | ||
Total book value | ||
1. Closing balance on book value | 19,610,113.75 | 19,610,113.75 |
2. Opening balance on book value (restated) | 8,610,167.63 | 8,610,167.63 |
15.Intangible assets
(1) Details of intangible assets
Unit: CNY
Item | Land use right | Patent right | No-patent righttechnology | Trademarkright | Computer software | Total |
Original cost of intangible assets | ||||||
Opening balance | 1,957,318,411.98 | 399,851,465.43 | 134,198,677.78 | 2,491,368,555.19 | ||
Increase in current period | 84,905.66 | 23,019,590.02 | 23,104,495.68 | |||
Including: Acquired | 84,905.66 | 23,019,590.02 | 23,104,495.68 | |||
Internally developed | ||||||
Business combination | ||||||
Decrease in current period | 615,723.68 | 140,943.39 | 756,667.07 | |||
Including: Disposal | 615,723.68 | 140,943.39 | 756,667.07 | |||
Closingbalance
Closingbalance | 1,956,702,688.30 | 399,936,371.09 | 157,077,324.41 | 2,513,716,383.80 | ||
Accumulated amortization of intangible assets | ||||||
Opening balance | 327,364,801.67 | 388,999,828.48 | 61,477,231.94 | 777,841,862.09 | ||
Increase in currentperiod | 40,068,462.55 | 2,241,357.80 | 14,231,882.63 | 56,541,702.98 | ||
Including: Provision | 40,068,462.55 | 2,241,357.80 | 14,231,882.63 | 56,541,702.98 | ||
Decrease in currentperiod | 124,170.94 | 140,943.39 | 265,114.33 | |||
Including: Disposal | 124,170.94 | 140,943.39 | 265,114.33 | |||
Closingbalance | 367,309,093.28 | 391,241,186.28 | 75,568,171.18 | 834,118,450.74 | ||
Provision for impairment | ||||||
Opening balance | ||||||
Increase in current period | ||||||
Including: Provision | ||||||
Decrease in current period | ||||||
Including: Disposal | ||||||
Closing balance | ||||||
Book value of intangible assets | ||||||
Closing book value | 1,589,393,595.02 | 8,695,184.81 | 81,509,153.23 | 1,679,597,933.06 | ||
Opening book value | 1,629,953,610.31 | 10,851,636.95 | 72,721,445.84 | 1,713,526,693.10 |
The proportion of intangible assets formed through internal research and development of the Company in the balance of intangible assets at the endof thisperiod is 0.00%.
16.Goodwill
(1) Goodwill book value
Unit: CNY
Investor’s name oritemsresultingingoodwill | Opening balance | Increase in current period | Decrease in current 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.
Guizhou Welcome Drink Stock Co., Ltd. | 11,333,195.25 | 11,333,195.25 | ||||
Total | 339,408,809.99 | 339,408,809.99 |
(2) Goodwill impairment provision
Unit: CNY
Investee’s name oritemsresultingingoodwill | Opening balance | Increasein currentperiod | Decrease incurrentperiod | 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 goodwillThe recoverable amount of asset group containing apportioned goodwill is determined according to the present value of the estimated future cash flow of therelevant asset group. Its future cash flows are determined based on the 3-year financial budget, with a certain discount rate. Cash flow over 3 years is calculated onthe basis of 18.94% growth rate. After the test, there is no goodwill impairment resulting from the acquisition of Jiangsu Shuanggou Distillery Stock Co., Ltd.Statement of testing process of impairment of goodwill, key parameters (e.g. the forecast growth rate at present value of future cash flows; the growth rate in stableperiod; profit margin; the discount rate; predictive period and etc.) and determination methods of recognizing goodwill impairment loss.Effect of goodwill impairment testOther notes
17.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 rentedhouse | 127,071.76 | 127,071.76 | |||
Wine city night view identification project | 15,020,580.57 | 3,004,116.11 | 12,016,464.46 | ||
Brighten old factory and packaging logistics center project | 2,180,484.25 | 436,096.85 | 1,744,387.40 | ||
Decoration expenses of hotel | 2,929,784.78 | 585,956.96 | 2,343,827.82 | ||
Total | 127,071.76 | 20,130,849.60 | 4,153,241.68 | 16,104,679.68 |
18.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 | 69,755,972.71 | 17,438,816.79 | 84,810,902.34 | 21,202,543.99 |
Unrealized profit from internal transaction | 57,053,878.39 | 14,263,469.60 | 35,903,134.07 | 8,975,783.52 |
Deductible losses | 1,005,233,098.74 | 251,308,274.69 | 787,092,991.66 | 196,773,247.91 |
The difference between book value of debt and tax base | 4,371,081,520.39 | 1,092,770,380.10 | 2,795,879,312.35 | 698,969,828.09 |
ESOP | 40,703,820.01 | 10,175,955.00 | ||
Total | 5,543,828,290.24 | 1,385,956,896.18 | 3,703,686,340.42 | 925,921,403.51 |
(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 | 41,727,391.07 | 10,431,847.77 | 44,387,767.84 | 11,096,941.96 |
Changes in fair value of financial assets held for trading | 1,157,320,622.97 | 288,950,549.61 | 1,781,604,966.78 | 445,242,472.42 |
Total | 1,199,048,014.04 | 299,382,397.38 | 1,825,992,734.62 | 456,339,414.38 |
(3)Deferred tax assets or liabilities presented as net value after offset
Unit: CNY
Item | Offset amount of deferred tax assets and deferred tax liabilities | Closing balance of deferred tax assets or deferred tax liabilities after offset | Opening offset amount of deferred tax assets and deferred tax liabilities | Opening balance of deferred tax assets or deferred tax liabilities after offset |
Deferred tax assets | 1,385,956,896.18 | 925,921,403.51 | ||
Deferred tax liabilities | 299,382,397.38 | 456,339,414.38 |
(4) Details of unrecognized deferred tax assets
Unit: CNY
Item
Item | Closing balance | Opening balance |
Deductible temporary differences | 192,033,907.02 | 88,933,255.36 |
Deductible losses | 56,117,773.36 | 105,350,440.90 |
Total | 248,151,680.38 | 194,283,696.26 |
(5) Deductible losses from unrecognized deferred tax assets will be due on the followingyears
Unit: CNY
Year | Closing balance | Opening balance | Note |
2022 | 53,837,061.59 | ||
2023 | 3,336,993.92 | 32,435,218.31 | |
2024 | 5,217,042.38 | 5,217,042.38 | |
2025 | 13,861,118.62 | 13,861,118.62 | |
2026 | 33,702,618.44 | ||
Total | 56,117,773.36 | 105,350,440.90 | -- |
19.Other non-current assets
Unit: CNY
Item | Closing balance | Opening balance | ||||
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 | 27,533,814.44 | 27,533,814.44 | 51,070,769.27 | 51,070,769.27 | ||
Total | 186,140,639.38 | 186,140,639.38 | 209,677,594.21 | 209,677,594.21 |
20. Notes Payable
Unit: CNY
Item | Closing balance | Opening balance |
Bank acceptance bill | 30,000,000.00 | |
Total | 30,000,000.00 |
As of December 31st 2021, the company did not have any unpaid matured notes payable.
21.Accounts payable
(1) Presentation of accounts payable
Unit: CNY
Item | Closing balance | Opening balance |
Payments for goods | 1,364,515,734.82 | 1,073,245,695.34 |
Payables on equipments | 79,659,527.26 | 78,625,440.95 |
Total | 1,444,175,262.08 | 1,151,871,136.29 |
(2) Significant accounts payable aging over one year
No significant accounts payable aging over 1 year are recorded in the ending balance.
22.Contract liabilities
Unit: CNY
Item
Item | Closingbalance | Opening balance |
Advance from customers | 11,645,306,829.55 | 6,191,149,791.32 |
Discounts and allowances payable to the distributors that have not yet been settled | 4,159,214,600.62 | 2,610,197,100.00 |
Total | 15,804,521,430.17 | 8,801,346,891.32 |
The amount and reason for any significant change in book value during the reporting period
Item | Amount | Reason |
Advance from customers | 5,454,157,038.23 | sales revenue increased |
Discounts and allowances payable to the distributors that have not yet been settled | 1,549,017,500.62 | sales revenue increased |
Total | 7,003,174,538.85 |
23.Employee benefits payable
(1) Employee benefits payable shown as follows:
Unit: CNY
Item | Opening balance | Increase in current period | Decrease incurrent period | Closing balance |
Short-termbenefits | 196,049,280.00 | 2,821,100,835.70 | 2,480,625,193.85 | 536,524,921.85 |
Post-employment benefits-defined contribution plans | 192,207.31 | 158,458,746.31 | 158,458,746.31 | 192,207.31 |
Termination benefits | 57,773.22 | 57,773.22 | ||
Total | 196,241,487.31 | 2,979,617,355.23 | 2,639,141,713.38 | 536,717,129.16 |
(2) Short-term employee benefits payable shown as follows:
Unit: CNY
Item | Opening balance | Increase in current period | Decrease incurrent period | Closing balance |
Wages, bonuses, allowances and grants | 195,969,775.98 | 2,540,634,112.04 | 2,200,220,570.90 | 536,383,317.12 |
Employees’ welfare | 90,234,437.31 | 90,234,437.31 | ||
Social insurance premiums | 14,860.09 | 84,080,450.63 | 84,080,450.63 | 14,860.09 |
Including: MedicalInsurance | 7,972.00 | 70,092,528.76 | 70,092,528.76 | 7,972.00 |
Work-related injury insurance | 6,875.34 | 4,780,462.33 | 4,780,462.33 | 6,875.34 |
Maternity insurance premium | 12.75 | 9,207,459.54 | 9,207,459.54 | 12.75 |
Housing funds | 59,967.80 | 92,347,092.00 | 92,286,430.00 | 120,629.80 |
Labor union expenditures and employee education funds | 4,676.13 | 13,804,743.72 | 13,803,305.01 | 6,114.84 |
Total | 196,049,280.00 | 2,821,100,835.70 | 2,480,625,193.85 | 536,524,921.85 |
(3) Defined Contribution Plan shown as follows:
Unit: CNY
Item | Opening balance | Increase in current period | Decrease incurrent period | Closing balance |
Basic endowment insurance premium | 191,323.23 | 153,607,027.27 | 153,607,027.27 | 191,323.23 |
Unemploymentinsurance premium
Unemployment insurance premium | 884.08 | 4,851,719.04 | 4,851,719.04 | 884.08 |
Total | 192,207.31 | 158,458,746.31 | 158,458,746.31 | 192,207.31 |
24.Taxes payable
Unit: CNY
Item | Closing balance | Opening balance |
Value-added tax | 175,920,362.08 | 150,194,783.11 |
Consumption tax | 554,560,829.94 | 533,945,998.98 |
Enterprise income tax | 2,200,631,701.75 | 1,333,112,088.00 |
Individual Income Tax | 30,310,775.71 | 20,265,903.93 |
Urban maintenance and construction tax | 26,222,879.17 | 45,918,790.94 |
Land use tax | 6,464,914.93 | 6,456,687.93 |
Property tax | 23,861,228.61 | 22,210,815.89 |
Education Surcharge and Local Education Surcharge | 39,516,421.27 | 37,359,708.11 |
Stamp tax | 1,556,153.30 | 1,005,142.70 |
Integrated funds | 6,505.75 | 2,545.99 |
Other tax | 2,333,399.20 | 2,333,690.85 |
Total | 3,061,385,171.71 | 2,152,806,156.43 |
25.Other payables
Unit: CNY
Item | Closing balance | Opening balance |
Other payables | 1,808,838,882.26 | 1,556,699,290.45 |
Total | 1,808,838,882.26 | 1,556,699,290.45 |
(1) Other payables
a) Categories by nature
Unit: CNY
Item | Closing balance | Opening balance |
Dealer deposit | 538,078,762.11 | 279,298,081.55 |
Dealer risk pledged deposit | 685,270,708.36 | 681,336,068.47 |
Accrued expenses | 351,345,770.61 | 303,563,123.81 |
Quality guarantee deposit and performance deposit | 131,196,540.43 | 195,028,352.99 |
Other payables | 102,947,100.75 | 97,473,663.63 |
Total | 1,808,838,882.26 | 1,556,699,290.45 |
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 | 631,509,861.72 | Dealer risk pledged deposit and dealer deposit not yet due |
Total | 631,509,861.72 | -- |
26.Non-current Liabilities Due within One Year
Unit: CNY
Item | Closing balance | Opening balance (restated) |
Lease liabilities due within one year | 8,405,846.77 | 2,083,914.78 |
Total | 8,405,846.77 | 2,083,914.78 |
27.Other current liabilities
Item | Closing balance | Opening balance |
Output VAT to be transferred | 1,491,462,609.44 | 798,216,651.49 |
Notes endorsed but notderecognized
Notes endorsed but not derecognized | 547,802,328.28 | |
Total | 2,039,264,937.72 | 798,216,651.49 |
28.Long-term loans
(1) Long-term loans by category
Unit: CNY
Item | Closing balance | Opening balance |
Credit loans | 36,360.00 | 36,360.00 |
Total | 36,360.00 | 36,360.00 |
29.Lease Liabilities
Unit: CNY
Item | Closing balance | Opening balance |
Lease liabilities | 10,729,824.19 | 6,526,252.85 |
Total | 10,729,824.19 | 6,526,252.85 |
30.Long-term payables
Unit: CNY
Item | Closing balance | Opening balance |
Special accounts payables | 196,694,194.53 | 197,049,341.93 |
Total | 196,694,194.53 | 197,049,341.93 |
(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 | 197,049,341.93 | 355,147.40 | 196,694,194.53 | ||
Total | 197,049,341.93 | 355,147.40 | 196,694,194.53 | -- |
31.Deferred incomes
Unit: CNY
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance | Reason |
Government grants | 85,999,500.00 | 8,757,000.00 | 77,242,500.00 | ||
Total | 85,999,500.00 | 8,757,000.00 | 77,242,500.00 | -- |
Projects involving government grants:
Unit: CNY
Liability item
Liability item | Opening balance | Increase in current period | Non-operating incomein 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 | 21,796,600.00 | 4,257,000.00 | 17,539,600.00 | Asset | ||||
Special fund for packaging logistics project in Shuanggou new area | 12,000,000.00 | 3,000,000.00 | 9,000,000.00 | Asset | ||||
Special fund for Harbin Binzhou brewery construction project | 41,202,900.00 | 41,202,900.00 | Asset | |||||
Shuanggou sewage treatment project | 6,000,000.00 | 1,500,000.00 | 4,500,000.00 | 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 | 85,999,500.00 | 8,757,000.00 | 77,242,500.00 |
32.Share capital
Unit: Share
Opening balance | Increases/ decreases in the current period (+, -) | Closing balance | |||||
Issuance of new shares | Sharedonation | Conversion of reserves funds into shares | Others | Subtotal | |||
Total shares | 1,506,988,000.00 | 1,506,988,000.00 |
33.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 | 40,703,820.01 | 40,733,820.01 | |
Total | 741,532,550.13 | 40,703,820.01 | 782,236,370.14 |
Other notes, including the changes in the current period, the reasons for the changes:
The company confirms the ESOP plan fee to increase the capital reserves-other capital reserves ofRMB 40,703,820.01.
34. Treasury shares
Item | Opening balance | Increase in current period | Decrease in current period | Closing balance |
Share repurchase | 1,002,128,680.79 | 945,850,000.00 | 56,278,680.79 | |
Total | 1,002,128,680.79 | 945,850,000.00 | 56,278,680.79 |
Other notes, including the changes in the current period, the reasons for the changesAccording to the proposal on Jiangsu Yanghe Distillery co., LTD. Phase I Core BackboneShareholding Plan (Draft) deliberated and approved by the company's extraordinary GeneralMeeting of Shareholders on August 2, 2021, the employees of this employee shareholding planhave subscribed for 9,118,384 shares at the average price of 103.73 yuan per share. The totalamount of subscription was 945,850,000.00 yuan, which reduced the company's treasury stocks.
35.Other comprehensive incomes
Unit: CNY
Item
Item | Opening balance | Currentperiod | Closing balance | |||||
Amount in current period before income tax | Less: Previously recognized in other comprehensive income transferredto profit or loss | Less: previously recognized in other comprehensive income transferred to retained earnings | Less: income tax | Amount attributes to parent company after tax | Amount attributes to non-controlling shareholders after tax | |||
II. Other comprehensive income that will be reclassified to profit or loss | -5,213,248.93 | -633,966.69 | -630,741.36 | -3,225.33 | -5,843,990.29 | |||
Including: other comprehensive income will be re-classified into profits or losses under the equity method | -163,797.21 | 10,293.63 | 10,293.63 | -153,503.58 | ||||
Effect on conversion of financial statements denominated in foreign currencies | -5,049,451.72 | -644,260.32 | -641,034.99 | -3,225.33 | -5,690,486.71 | |||
Total other comprehensive income | -5,213,248.93 | -633,966.69 | -630,741.36 | -3,225.33 | -5,843,990.29 |
Other notes, including adjustments for valid portion of the gains and or losses from cash flow hedging transferring to initial recognition amount of projects hedged.
36.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 |
Notes for surplus reserves including increase or decrease changes and change reasons this period:
37.Retained Earnings
Unit: CNY
Item
Item | Current period | Previous period |
Retained Earnings before adjustment at the end of the last year | 36,489,911,363.13 | 33,510,429,712.50 |
Retained Earnings after adjustment at the beginning of year | 36,489,911,363.13 | 33,510,429,712.50 |
Add: net profit attributable to owners of the parent company for the current period | 7,507,682,797.40 | 7,482,228,633.63 |
Less: Dividends payable on common shares | 4,491,980,070.00 | 4,502,746,983.00 |
Retained earnings at the end of the current reporting period | 39,505,614,090.53 | 36,489,911,363.13 |
Notes for adjusting undistributed profits at the beginning of the period:
(1) Retained Earnings at the beginning of the period were affected by CNY0.00 due to theretrospective adjustment under the Accounting Standards for Business Enterprises and relatednew regulations.
(2) Retained Earnings at the beginning of the period were affected by CNY0.00 due to changes inaccounting policies.
(3) Undistributed profits at the beginning of the period were affected by CNY0.00 due to thecorrection of significant accounting errors.
(4) Retained Earnings s at the beginning of the period were affected by CNY0.00 due to changes inthe scope of consolidation resultingfrom business combination involving enterprises undercommon control.
(5) Retained Earnings at the beginning of the period were affected by CNY0.00B in total due toother adjustments
38.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 | |
Operating incomes | 24,638,674,089.57 | 5,702,863,048.47 | 20,334,282,442.98 | 5,243,536,119.11 |
Other operating income | 711,504,114.88 | 552,534,515.63 | 766,768,688.81 | 608,368,477.60 |
Total | 25,350,178,204.45 | 6,255,397,564.10 | 21,101,051,131.79 | 5,851,904,596.71 |
Whether the net profit is negative or not after deducting non-recurring profits and losses by audit,
□ Yes √ No
Information on revenue:
Unit: CNY
Category of Contra | Segment 1 | Segment 2 | Total | |
Commodity type | ||||
Including: | ||||
By operating regions | ||||
Including: | ||||
Type of market or customer | ||||
Including: | ||||
Type of contract | ||||
Including: | ||||
By the time of commodity transfer | ||||
Including: | ||||
By the contract t | ||||
Including: |
By the selling channel | ||||
Including: | ||||
Total |
Information regarding 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 performance obligationswith the contracts signed but not performed or not performed is CNY 11,645,306,829.55, of whichCNY11,645,306,829.55 is expected to be recognized in 2022, and CNY 0.00 is expected to berecognized in 2023Other notes
39.Taxes and surcharges
Unit: CNY
Item | Current period amount | Previous period amount |
Consumption tax | 3,445,365,868.93 | 2,847,452,319.78 |
Urban maintenance and construction tax | 300,870,065.44 | 241,392,653.40 |
Educational surcharge | 298,966,722.11 | 239,859,725.86 |
Property tax | 70,430,075.52 | 60,808,511.65 |
Land use tax | 18,361,571.79 | 18,164,433.97 |
Stamp tax | 13,969,946.24 | 7,942,227.94 |
Environmental protection tax | 9,370.09 | 11,898.43 |
Others | 8,508.00 | 13,998.00 |
Total | 4,147,982,128.12 | 3,415,645,769.03 |
40.Selling and distribution expenses
Unit: CNY
Item | Current period amount | Previous period amount |
Advertising and promotion expense | 1,911,827,032.90 | 1,411,090,022.81 |
Payroll | 1,065,844,674.57 | 646,271,019.11 |
Travel expense | 390,432,690.88 | 353,434,744.65 |
Labor expense | 88,722,961.18 | 117,975,847.08 |
E-commerce expenses | 37,801,331.20 | 24,130,806.14 |
Other expense | 49,736,198.81 | 50,901,717.99 |
Total | 3,544,364,889.54 | 2,603,804,157.78 |
41.General and administrative expenses
Unit: CNY
Item | Current period amount | Previous period amount |
Payroll | 738,382,078.49 | 665,991,755.03 |
Travel expense | 35,607,123.11 | 34,612,481.35 |
Office allowance | 7,389,752.82 | 6,667,982.75 |
Water, electric and steam expense | 57,175,472.37 | 56,946,078.23 |
Business entertainment expense | 25,674,580.41 | 18,533,811.47 |
Depreciation cost | 430,504,129.04 | 463,503,047.71 |
Repaircharge | 43,706,934.03 | 40,899,196.47 |
Amortization of intangible assets | 56,541,702.98 | 55,171,822.38 |
Vehicle use expense | 21,827,557.47 | 17,742,719.25 |
Shipping and handling cost | 31,039,417.23 | 43,948,370.23 |
ESOP plan fee | 39,741,779.13 | |
Other expense | 342,489,612.10 | 325,062,937.06 |
Total | 1,830,080,139.18 | 1,729,080,201.93 |
42.Research & Development expenses
Unit: CNY
Item
Item | Current period amount | Previous period amount |
Material expenses | 126,609,051.53 | 144,095,917.84 |
Payroll | 84,819,165.34 | 77,975,559.20 |
Other expense | 47,029,885.76 | 38,022,813.99 |
Total | 258,458,102.63 | 260,094,291.03 |
43.Financial expenses
Unit: CNY
Item | Current period amount | Previous period amount |
Interest expense | 603,755.58 | 1,964.00 |
Bill discount expense | 28,742,496.43 | 11,719,069.54 |
Less: Interest income | 433,923,395.67 | 104,495,154.37 |
Plus: Losses from currency exchange (Less: income) | 3,194,795.97 | 3,670,115.95 |
Plus: Bank charges | 2,236,837.73 | 1,869,240.49 |
Total | -399,145,509.96 | -87,234,764.39 |
44.Other incomes
Unit: CNY
Sources of other incomes | Current period | Previous period |
Government grants received | 87,366,302.47 | 98,151,595.19 |
Withholding personal tax commission | 3,484,445.51 | 818,031.70 |
Total | 90,850,747.98 | 98,969,626.89 |
45.Investment income
Unit: CNY
Item | Current period amount | Previous period amount |
Investment income from long-term equity investments under the equity method | 2,948,720.95 | 3,940,820.47 |
Investment income from disposing long- term equity investments | 21,516.26 | |
Investment income from financial assets held for trading during the holding period | 23,102,480.38 | 113,585,439.53 |
Investment income from disposal of financial assets held for trading | 874,562,276.89 | 1,089,135,586.23 |
Total | 900,613,478.22 | 1,206,683,362.49 |
46.Gains/losses of changes in fair value
Unit: CNY
Gains/ losses of changes in fair value | Current period amount | Previous period amount |
Held-for-trading financial assets | -721,212,806.81 | 1,267,682,598.52 |
Total | -721,212,806.81 | 1,267,682,598.52 |
47.Credit Impairment Loss
Unit: CNY
Item | Current period amount | Previous period amount |
Credit impairment losses of other receivables | 12,801,955.01 | 152,069.92 |
Credit impairment losses of accounts receivable | -174,467.73 | 94,412.53 |
Total | 12,627,487.28 | 246,482.45 |
48.Losses from asset impairment
Unit: CNY
Item | Current period amount | Previous period amount |
Losses on inventory devaluation andContract assets impairment loss
Losses on inventory devaluation and Contract assets impairment loss | -7,175,293.45 | -6,196,876.85 |
Total | -7,175,293.45 | -6,196,876.85 |
49.Gains from disposal of assets
Unit: CNY
Gains from disposal of assets | Current period amount | Previous period amount |
Gains from disposal of fixed assets | 224,432.51 | 45,438.89 |
Gains from disposal of intangible assets | -39,747.54 | |
Total | 184,684.97 | 45,438.89 |
50.Non-operating income
Unit: CNY
Item | Current period amount | Previous period amount | Amount including non-recurring profit and loss in current period |
Donations acceptance | 9,120,063.00 | ||
Government grants | 24,000.00 | ||
Liquidated damages income | 7,192,792.01 | 4,475,586.24 | 7,192,792.01 |
Compensation payment | 11,339,388.88 | 8,475,059.72 | 11,339,388.88 |
Accounts payable that are unable to pay | 20,610.00 | 64,118.24 | 20,610.00 |
Others | 2,165,592.11 | 2,881,043.09 | 2,165,592.11 |
Total | 20,718,383.00 | 25,039,870.29 | 20,718,383.00 |
Government grants included in current profits and losses:
Unit: CNY
Item | Body | Reason | Type | Whether the grants affect current year profit and loss | Whether it is special grant | Current period amount | Previous period amount | Related to assets/ related to earnings |
51.Non-operating expenses
Unit: CNY
Item | Current period amount | Previous period amount | The amount booked into current period non-recurring profits and looses |
Donation expenses | 42,083,802.00 | 35,400,000.00 | 42,083,802.00 |
Losses from disposal of fixed asset | 10,872,590.73 | 4,802,593.81 | 10,872,590.73 |
Integrated fund | 72,950.74 | 77,328.11 | |
Reparations | 3,971,839.00 | 422,169.33 | 3,971,839.00 |
Others | 6,218,870.88 | 623,399.13 | 6,218,870.88 |
Total | 63,220,053.35 | 41,325,490.38 | 63,147,102.61 |
52.Income tax expense
(1) Details of income tax expense
Unit: CNY
Item | Current period amount | Previous period amount |
Income tax for the current reporting period | 3,050,593,837.76 | 2,178,072,592.80 |
Deferred income tax expenses | -616,983,716.56 | 216,222,985.28 |
Total | 2,433,610,121.20 | 2,394,295,578.08 |
(2) Adjustment for accounting profit and income tax expense
Unit: CNY
Item | Current period amount |
Total profit
Total profit | 9,946,427,518.68 |
Income tax expenses determined by statutory/ applicable tax rate | 2,486,606,879.67 |
Impact from subsidiaries’ different tax rates | 2,291,895.48 |
Adjustfor impact from income tax expense in previous period | -3,041,806.60 |
Tax effect of non-taxable income | -6,512,800.33 |
Impact of non-deductible costs, expenses and losses | 5,987,935.77 |
Deductible from deferred tax assets in previous period | -20,733,821.50 |
Impact of deductible temporary differences or deductible losses for which no deferred income tax assets is recognized for the current period | 32,740,501.84 |
Impact of additional deduction of R&D expenses | -63,728,663.13 |
Income tax expense | 2,433,610,121.20 |
53.Net other comprehensive income
Refer to note for details.
54.Consolidated cash flow items
(1) Cash received from other operation activities
Unit: CNY
Item | Current period amount | Previous period amount |
Risk deposit | 3,934,639.89 | 60,255,818.13 |
Dealer deposit | 193,381,207.42 | 56,575,865.80 |
Interest income | 325,095,935.92 | 104,495,154.37 |
Liquidated damages income | 7,192,792.01 | 4,475,586.24 |
Government grants | 78,609,302.47 | 94,418,595.19 |
Commission for with holding tax | 3,484,445.51 | 818,031.70 |
Others | 116,730,588.44 | 48,750,584.17 |
Total | 728,428,911.66 | 369,789,635.60 |
Notes 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 | 32,454,361.50 | 45,592,659.35 |
Advertising promotion expense | 1,875,126,011.49 | 1,216,976,623.15 |
Repair charge | 40,144,581.28 | 40,913,095.81 |
Travel expense | 431,546,399.27 | 408,411,257.95 |
Entertainment expense | 25,897,841.15 | 20,161,922.58 |
Labor expense | 135,250,366.93 | 149,569,041.84 |
Others | 462,537,339.25 | 405,109,914.56 |
Total | 3,002,956,900.87 | 2,286,734,515.24 |
Notes for cash paid for other operating activities:
(3) Cash received from other financing activities
Unit: CNY
Item | Current period amount | Previous period amount |
Repurchase of ESOP shares | 945,850,000.00 | |
Total | 945,850,000.00 |
Notes for Cash received from other financing activities:
(4) Cash paid for other financing activities
Unit: CNY
Item | Current period amount | Previous period amount |
Repurchase of shares | 1,002,128,680.79 | |
Lease payment | 6,587,740.77 | |
Total | 6,587,740.77 | 1,002,128,680.79 |
Notes for cash paid for other financing activities:
55.Supplementary Information about Cash Flow Statement
(1) Supplementary information about of cash flowstatement
Unit: CNY
Item
Item | Current period amount | Previous period amount |
Reconciliation of net profit to cashflow from operating activities | -- | -- |
Net profit | 7,512,817,397.48 | 7,484,606,313.92 |
Add: Impairment of assets | -5,452,193.83 | 5,950,394.40 |
Fixed assets depreciation | 693,049,497.12 | 727,550,847.83 |
Right-of-use assets depreciation | 5,509,542.40 | |
Amortization of intangible assets | 56,541,702.98 | 55,171,822.38 |
Amortization of long-term deferred expenses | 4,153,241.68 | 127,071.84 |
Gains on disposal of fixed assets, intangible assets and other long-term assets | -184,684.97 | -45,438.89 |
Fixed asset scrapping losses | 10,872,590.73 | 4,669,390.54 |
Losses (gains) from changes in fair value | 721,212,806.81 | -1,267,682,598.52 |
Financial expense | 3,798,551.55 | 3,672,079.95 |
Investment income | -900,613,478.22 | -1,206,683,362.49 |
Decrease in deferred tax asset | -460,035,492.67 | -100,857,345.94 |
Increase in deferred tax liabilities | -156,957,017.00 | 317,080,331.22 |
Decrease in inventory | -1,956,133,735.33 | -422,305,228.21 |
Decrease in operation receivable | -230,907,969.63 | 255,853,105.64 |
Increase in operation payable | 10,090,059,214.80 | -1,878,449,751.14 |
Others | -69,564,493.37 | 133,203.27 |
Net cash flow from operating activities | 15,318,165,480.53 | 3,978,790,835.80 |
Significant investing and financing activities not Involving cashflow: | -- | -- |
Net change in cash &cash equivalents | -- | -- |
Closing balance of cash | 20,847,003,550.37 | 7,243,186,362.29 |
Less: Opening balance of cash | 7,243,186,362.29 | 4,300,144,848.67 |
Add: Closing balance of cash equivalents | ||
Less: Opening balance of cash equivalents | ||
Net Increase (decrease) in cash and cash equivalents | 13,603,817,188.08 | 2,943,041,513.62 |
(2) Composition of cash and cash equivalents
Unit: CNY
Item
Item | Closing balance | Opening balance |
Cash | 20,847,003,550.37 | 7,243,186,362.29 |
Including: cash onhand | 3,549.27 | 4,434.27 |
Unrestricted bank deposit | 20,785,927,709.41 | 7,201,133,719.50 |
Cash equivalents | 61,072,291.69 | 42,048,208.52 |
Closing balance of cash and cash Equivalents | 20,847,003,550.37 | 7,243,186,362.29 |
56.Foreign currency transactions
(1) Foreign currency balance
Unit: CNY
Item | Balance in foreign currency at the end of the reporting period | Exchange rate | Balance of CNY converted at the end of the reporting period |
Cash and cash equivalents | -- | -- | 77,228,299.86 |
Including:USD | 10,263,661.09 | 6.3757 | 65,438,024.01 |
EUR | |||
HKD | 4,177,908.36 | 0.8176 | 3,415,857.87 |
CLP | 1,119,093,451.00 | 0.007483 | 8,374,417.98 |
Accounts receivable | |||
Including:USD | |||
EUR | |||
HKD | |||
Other receivables | 100,711.28 | ||
Including:HKD | 123,179.16 | 0.8176 | 100,711.28 |
Long-term loans | -- | -- | |
Including:USD | |||
EUR | |||
HKD | |||
Accounts payable | 5,983,344.71 | ||
Including:USD | 938,460.83 | 6.3757 | 5,983,344.71 |
Other payables | 371,103.79 | ||
Including:HKD | 448,590.73 | 0.8176 | 366,767.78 |
CLP | 579,431.00 | 0.007483 | 4,336.01 |
(2) Description of the overseas business entity, including the important foreignbusiness entity,which shall disclose its main foreign business place, bookkeeping standard currency and selectionbasis, 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 VirginIslands | USD | Currency in the main economic environment of business operations |
ZYG TechnologyInvestment Ltd.
ZYG Technology Investment Ltd. | British VirginIslands | USD | Currency in the main economic environment of business operations |
Yanghe Chile SPA | Santiago, Chile | CLP | Currency in the main economic environment of business operations |
YangheHong Kong Distillery Co., Ltd. | Hong Kong, China | HKD | Currency in the main economic environment of business operations |
57.Government grants
(1) Details of government grants
Unit: CNY
Category | Amount | Financial Report Items | Amount booked in current profit and loss |
Industrial development guidance funds | 46,644,851.20 | Other income | 46,644,851.20 |
Supporting subsidies | 9,461,611.09 | Other income | 9,461,611.09 |
Steadypostsubsidy | 2,894,026.61 | Other income | 2,894,026.61 |
trainingsubsidy | 2,284,880.00 | Other income | 2,284,880.00 |
Tax incentives in 2020 | 1,963,778.72 | Other income | 1,963,778.72 |
Support funds for industrial chain construction enterprises | 1,960,000.00 | Other income | 1,960,000.00 |
award fund for Provincial governor quality award certificate enterprise | 1,800,000.00 | Other income | 1,800,000.00 |
municipal Industrial Development Guide Fund (Industrial Agglomeration) project award and Subsidy funds in 2020 | 1,600,000.00 | Other income | 1,600,000.00 |
The second batchofspecialfundsfortheintroduction ofurgentlyneededtalents for the development of NorthernJiangsuin 2019 | 1,032,000.00 | Other income | 1,032,000.00 |
Special funds for the revitalization of high-quality tobacco and alcohol industry in 2020 | 1,800,000.00 | Other income | 1,800,000.00 |
exhibition hall projectconstructionsubsidyfunds | 1,000,000.00 | Other income | 1,000,000.00 |
The incentive fund for increasing production in 2020 | 680,600.00 | Other income | 680,600.00 |
Suqian tourism commodity guidance funds in 2020 | 550,000.00 | Other income | 550,000.00 |
Comprehensive award and subsidy fund for technological transformation of industrial enterprises in Jiangsu Province in 2020 | 500,000.00 | Other income | 500,000.00 |
Wine country imagepublicitysubsidy | 500,000.00 | Other income | 500,000.00 |
Provincial Geographical Indication Promotion and Protection Project funding in 2021 | 500,000.00 | Other income | 500,000.00 |
Financial incentives for enterprise R & D investment in 2021 | 500,000.00 | Other income | 500,000.00 |
Provincial green factory incentive funds | 440,000.00 | Other income | 440,000.00 |
Municipal intellectual property award and Subsidy funds in 2021 | 427,000.00 | Other income | 427,000.00 |
Awards and subsidies for legal protection of intellectual property rights | 256,400.00 | Other income | 256,400.00 |
incentive funds for "Suqian Boutique" brand | 400,000.00 | Other income | 400,000.00 |
Special funds for promoting production, stabilizing employment and ensuring growth in 2020 | 127,100.00 | Other income | 127,100.00 |
Others | 1,287,054.85 | Other income | 1,287,054.85 |
Transferofcurrentdeferredearnings | 8,757,000.00 | Other income | 8,757,000.00 |
Total | 87,366,302.47 | 87,366,302.47 |
(2) The return of government subsidies
□ Applicable √ Not applicable
V. Changes in consolidated scope
1. Changes of Consolidation Scope due to Other CausesExplain the change of merger scope caused by other reasons (such as new subsidiary, liquidationsubsidiary, etc.) and the relevant situation:
(1) In March 2021, Jiangsu Shuanggou Wine Industry Co., LTD., a holding subsidiary, invested100 million yuan to set up Jiangsu Shuanggou Wine Sales Co., LTD., accounting for 100% of its
registered capital. It will be included in the consolidated scope of consolidated financialstatements from March 2021.
(2) In April 2021, the Company and Suqian Industrial Development Group Co., Ltd. jointlyinvested RMB 20 million to establish Jiangsu Jiushang Internet Technology Co., LTD., of which thecompany invested RMB 10.2 million, accounting for 51% of the registered capital; Suqian IndustrialDevelopment Group Co., Ltd. invested CNY 9.80 million, accounting for 49%. It will be included inthe consolidated scope of consolidated financial statements from April 2021.
(3) In July 2021, the company subscribed RMB 50 million to set up Jiangsu Yanghe CulturalTourism Co., LTD., accounting for 100% of its registered capital. It will be included in theconsolidated scope of consolidated financial statements from July 2021.
(4) In July 2021, its holding subsidiaries Jiangsu Yanghe Cultural Tourism Co., Ltd. and SuqianCultural Tourism Development Group Co., Ltd. jointly invested 20 million yuan to establish JiangsuYanghe Cultural Tourism Operation Co., LTD., of which jiangsu Yanghe Cultural Tourism Co., Ltd.invested CNY 16 million, accounting for 80% of its registered capital; Suqian Cultural TourismDevelopment Group Co., Ltd. invested CNY 4 million, accounting for 20%. It will be included in theconsolidated scope of consolidated financial statements from July 2021.
(5) In November 2021, the company subscribed 24 million yuan to set up Siyang Blue SkyPackaging Service Co., LTD., accounting for 100% of its registered capital. It will be included in theconsolidated scope of consolidated financial statements from November 2021.
VI. Interests in other entities
1. Interests in subsidiaries
(1) Group composition:
Name of subsidiaries
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 | |
Suqian Yanghe Guibinguan Co., Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Hotel industry | 100.00% | Establishment | |
Su Wine Group Trade Co., Ltd | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 83.63% | 16.37% | Establishment |
Jiangsu Yanghe Liquor Operation Management Co., Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
Jiangsu Shuanggou Liquor Operation Co., 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 Blue Dream Trade Co., Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment | |
Siyang Lantu Liquor Operation Co., 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 Miluochun Liquor Industry Co., Ltd. | Ningxiang, Hunan province | Ningxiang, Hunan province | Manufacture and sale of liquor and compound wine | 100.00% | Business 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 Blue Sky Trade Co., Ltd. | Suqian, Jiangsu province | Suqian, Jiangsu province | Commerce | 100.00% | Establishment |
Shiyan Yunyang Lihuacun Package ServiceCo.,Ltd.
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 Tongmeng City Logistics Co., Ltd. | Changzhou, Jiangsu province | Changzhou, Jiangsu province | Freight Transport, Warehouse service | 51.00% | Business Combinations 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 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 | |
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 | |
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 | |
Yang He International Investment Ltd | British Virgin Islands | British Virgin Islands | Industrial investment | 100.00% | Establishment |
Jiangsu Shuanggou Healthy Liquor Researchinstitute Co., Ltd.
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 service | 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 distribution, freight forwarder | 100.00% | Establishment | |
Yang He 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 Distillery Co., Ltd. | HongKong, China | Hong Kong,China | Industrial investment | 100.00% | Establishment |
Jiangsu Yanghe Calligraphy and PaintingAcademy
Jiangsu Yanghe Calligraphy and Painting Academy | Nanjing, Jiangsu province | Nanjing, Jiangsu province | Painting and calligraphy creation, exhibition; Academic research; Public art education; Cultural and creative products development and promotion | 100.00% | Establishment | |
Jiangsu Shuanggou Wine Sales Co., Ltd | Sihong, Jiangsu Province | Sihong, Jiangsu Province | Commerce | 100.00% | Establishment | |
Jiangsu Jiushang Internet Technology Co., LTD | Suqian, Jiangsu Province | Suqian, Jiangsu Province | Internet information service, alcohol sales | 51.00% | Establishment | |
Jiangsu Yanghe Cultural Tourism Co., LTD | Suqian, Jiangsu Province | Suqian, Jiangsu Province | Tobacco retail, catering, accommodation, tourism business | 100.00% | Establishment | |
Jiangsu Yanghe Cultural Tourism Operation Co., LTD. | Suqian, Jiangsu Province | Suqian, Jiangsu Province | Tobacco retail, catering, accommodation, tourism business | 80.00% | Establishment | |
Siyang Blue Sky Packaging Service Co., Ltd | Sihong , Jiangsu Province | Sihong, Jiangsu Province | Wine production and packaging services | 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 theinvested 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 aprincipal:
Other notes:
2. Interests in joint ventures and associates
(1) Summary of financial information of insignificant joint ventures and associates
Summarized information is as follows:
Unit: CNY
Closing balance/ amount for the current period | Opening balance/ amount for the prior period | |
Associates: | -- | -- |
Total carrying amount of investment | 8,173,436.53 | 10,261,147.01 |
The aggregate amount of the following items calculated based on the Company’s equity share percentage of the associates | -- | -- |
--Netprofit | -2,562,964.31 | -658,669.17 |
--Other comprehensive income | 10,293.63 | -342,416.50 |
-- Total comprehensive income | -2,552,670.68 | -1,001,085.67 |
Joint ventures: | -- | -- |
Total carrying amount of investment | 24,569,960.78 | 19,267,230.15 |
The sum of the following items calculated according to the shareholding ratio | -- | -- |
--Netprofit | 5,511,685.26 | 4,599,489.64 |
-- Total comprehensive income | 5,511,685.26 | 4,599,489.64 |
VII. Risks related to financial instrumentsThe Group is exposed to various financial risks in the ordinary course of business, mainlyincludes credit risk, liquidity risk, market risk, etc. The Company's management is fully responsiblefor the formulation of risk management objectives and policies and takes responsibility for riskmanagement objectives and policies. The objective of the Company’s risk management is toidentify and analysis risk, minimizing the adverse impact of financial risks without excessiveinfluence on the company's competitiveness and 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 to notesreceivables and accounts receivable, in order to control the risk, the Company takes the followingmeasures:
(1) Bank deposit
The company's bank deposits are mainly deposited in state-owned holding banks, large andmedium-sized listed banks and other commercial banks with high credit. There is no significantcredit 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 adopts theway of delivery after the payments finished. For some group purchase business, it only deals withthe reputable group clients, and continuously monitors the balance of notes receivables andaccounts receivables, as a result, there is no collateral required, and credit risk managementconcentrates on the clients. The balance of notes receivables and accounts receivables are smalltill 31 December 2021. The Company does not hold any collateral or other credit enhancement forthe balance of accounts receivables.
(3) Other receivable
The other receivables are mainly saving deposits involving infringement dispute, deposits andpetty cash, employee business loan and so on. The Company manages other receivables andcontinuously monitors its balance, to ensure the Company not to face significant 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 bill clearingand bank loan to optimize the financing structure and maintain the balance between financingcontinuity and flexibility.
The maturity of the financial liabilities held by the Company according to theundiscountedremaining contractual obligations is analyzed as follows:
Item
Item | Closing balance | ||||
Within 1 year | 1-2 years | 2-3 years | Over 3 years | Total | |
Accounts payable | 1,444,175,262.08 | 1,444,175,262.08 | |||
Other payables | 1,808,838,882.26 | 1,808,838,882.26 | |||
Long-term loan | 36,360.00 | 36,360.00 | |||
Long-term payables | 196,694,194.53 | 196,694,194.53 |
(Continued)
Item | Opening balance | ||||
Within 1 year | 1-2 years | 2-3 years | Over 3 years | Total | |
Accounts payable | 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 |
3. Market risk
Market risk is the fair value of financial instrument or future cash flow fluctuates due to thefluctuation of market price, and it mainly includes interest rate risk, foreign exchange risk, etc.
(1) Interest rate risk
Interest rate risk refers to the fair value of financial instrument or future cash flow fluctuatesdue to the fluctuation of interest rate. The Company faces the risk of market interest rate changemainly related to the Company's borrowing limit.
(2) Foreign exchange risk
Foreign exchange risk arises from fluctuation in exchange rate, relevant to the assets andliabilities in foreign currency. The less import and export business happened, the lower impact ofexchange rate fluctuation on company's operation.
The amount in CNY of the Company’s assets and liabilities shown in foreign currencies asfollows:
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 | 10,263,661.09 | 6.3757 | 65,438,024.01 | 1,470,471.60 | 6.5249 | 9,594,680.17 |
HKD | 4,177,908.36 | 0.8176 | 3,415,857.87 | 46,702.46 | 0.84164 | 39,306.66 |
CLP | 1,119,093,451.00 | 0.007483 | 8,374,417.98 | 60,178,014.00 | 0.009181 | 552,494.35 |
Other receivables |
HKD
HKD | 123,179.16 | 0.8176 | 100,711.28 | 125,679.16 | 0.84164 | 105,776.61 |
Accounts payable | ||||||
Include: USD | 938,460.83 | 6.3757 | 5,983,344.71 | 499,163.86 | 6.5249 | 3,256,994.27 |
CLP | 35,950.00 | 0.009181 | 330.06 | |||
Other payables | ||||||
Include: HKD | 448,590.73 | 0.8176 | 366,767.78 | 1,542,853.06 | 0.84164 | 1,298,526.85 |
CLP | 579,431.00 | 0.007483 | 4,336.01 | 14,000.00 | 0.009181 | 128.53 |
Net amount | 70,974,562.64 | 5,736,278.08 |
The amount of foreign currency financial assets and financial liabilities of the company is small,and exchange rate fluctuations have little impact on the company's business performance.
VIII. Fair value disclosure
1.The Financial Assets and Financial Liabilities Measured at Fair Value atthe end of the Reporting Period
Unit: CNY
Item | Closing fair value | |||
Level 1 | Level2 | Level3 | Total | |
Continuous fair value measurement | -- | -- | -- | -- |
(1) Debt instrument investment | 12,183,632,684.17 | 12,183,632,684.17 | ||
(2) Equity instrument investment | 1,299,254,210.43 | 5,106,949,582.47 | 6,406,203,792.90 | |
Receivables Financing | 222,793,060.40 | 222,793,060.40 | ||
Bank acceptance bill | 222,793,060.40 | 222,793,060.40 | ||
Total assets continuously measured at fair value | 1,299,254,210.43 | 17,513,375,327.04 | 18,812,629,537.47 | |
Non-Continuous fair value measurement | -- | -- | -- | -- |
2. Basis for determining the market price of continuous andnon-continuous level 1 fair value measurementitems
Local open market closing price
3.Valuation techniques and qualitative and quantitative information of keyparameters adopted forcontinuous and non-continuous level 3 fair valuemeasurement it
Debt instrument investment: the expected rate of return is taken as an important reference to
evaluate its fair value
Equity instrument investment: the cost or the ending net assets of the invested entity is takenas an important reference to evaluate its fair value
Receivables for Financing:the par value is taken as an important reference to evaluateits fairvalue
4.In case of transfers among levels for the current period, explain thetransfer reasons and policies fordetermining transfer time point forcontinuous fair value measurement items
Restricted shares of listed companies held in equity instrument investment are changed totradable shares in the current period, and the fair value measurement of the current period ischanged from the second level to the first level, and the closing price of the open market is usedas the basis of its fair value measurement.IX. 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 ofliquor, import of various raw and auxiliary materials, equipment and accessories required for production, industrial investment. | CNY 1 billion | 34.16% | 34.16% |
Information about the Company’s parent company
The final control party of the Company is State-owned Assets Supervision and AdministrationCommission 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 Note.
Other joint ventures and associates whose related party transactions with the Company in thecurrent period or balance formed from related party transactions with the Company in the priorperiod as follows:
Name of joint venture and associate | Relationship with the Company |
Diageo International Spirits Company Limited | Joint Venture |
JiangsuSu 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 the Company | |
Suqian Industrial Development Group | Actual controller |
5. Related party transactions
(1) Related party transactions regarding sales and purchases of goods, provision of servicesand receiving servicesStatement of purchase of goods / Receipt of labor services
Unit: CNY
Related Party | Transaction Content | Amount for the current period | Approved transaction amount | Whether exceeding the approved transaction amount | Amount for the prior period |
VSPT, Vi?a San Pedro Tarapacá S.A | Red wine | 21,169,155.61 | 6,235,323.42 | ||
Nanjing Hesong Culture Technology Co., Ltd. | Advertising and general publicity expense | 303,276.09 | 8,416,890.42 | ||
Jiangsu Diageo Wine Co. LTD. | Liquor | 10,129,543.56 | 5,308,792.27 |
Statement of sales of goods/ rendering of labor services
Unit: CNY
Related party | Transaction content | Amountfor the currentperiod | Amount for the prior period |
Shanghai Haiyan Logistics Development Co., Ltd. | Sales of liquor | 5,067,075.48 | 4,354,544.40 |
Jiangsu SuWine Cultural Transmission Co., Ltd. | Sales of liquor | 46,448,093.82 | 30,058,725.66 |
Jiangsu Diageo Wine Co. Ltd. | Sales of liquor | 3,820,908.96 | 4,097,463.51 |
Jiangsu DiageoWineCo.LTD | Consulting fee income | 967,085.23 | |
Nanjing Hesong Culture Technology Co., Ltd. | Consulting fee income | 673,267.32 | |
Jiangsu Xinghe Investment Management Co., Ltd. | Consulting fee income | 2,443,396.23 | 2,184,466.02 |
Description of related transactions in the purchase and sale of goods, provision and receipt ofservices
(2) Related party lease
The Company as a 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 | 201,834.86 |
(3) Compensation for key managers
Item | Amount for the current period | Amount for the prior period |
(4) Other related party transactions
In April 2021, the Company and Suqian Industrial Development Group Co., Ltd. jointlyestablished Jiangsu Jiushang Internet Technology Co., Ltd., including RMB 10.20 million,accounting for 51% of the registered capital; Suqian Industrial Development Group Co., Ltd.contributed RMB 9.80 million, accounting for 49%.
6. Receivables from and payables to related parties
(1) Payables
Unit: CNY
Item
Item | Related party | Closing balance | Opening balance |
Contract liabilities | Shanghai Haiyan Logistics Development Co., Ltd. | 6,010,270.99 | 6,396,586.54 |
Contract liabilities | Jiangsu SuWine Cultural Transmission Co., Ltd. | 26,791,306.31 | 7,523,939.23 |
Accounts payable | Jiangsu Diageo WineCo. Ltd. | 2,195,373.19 | 255,806.65 |
Other Payables | Shanghai Haiyan Logistics Development Co., Ltd. | 151,531.60 | 83,531.60 |
Other Payables | Jiangsu SuWine Cultural Transmission Co., Ltd. | 1,000,451.00 | 940,228.00 |
X. Share-based payment
1. Others
According to Phase I Core Backbone Shareholding Plan (Draft) of Jiangsu Yanghe Distillery Co.,Ltd., deliberated and approved at the second Extraordinary Shareholders' Meeting of 2021 held onAugust 2, 2021, The shareholding scale of the shareholding plan does not exceed 9,661,310 shares,accounting for about 0.64% of the total 1,506,988,000 shares of the Company on theannouncement date of the draft shareholding plan; This Shareholding plan takes "shares" as thesubscribed units, each share is CNY 1.00, and the total subscribed shares shall not exceed CNY1,002,167,686.30. The total capital to be raised shall be capped at CNY 1,002,167,686.30, and thespecific shares shall be determined according to the actual amount of capital contribution. Thestock in this stock plan is derived from the company's A-share ordinary shares repurchased by thespecial account. The duration of the shareholding plan is 36 months, and the lock-up period of theacquired shares is 24 months, which shall be calculated from the date when the draft shareholdingplan is approved by the Shareholders' Meeting and the company announces the last transfer ofthe underlying shares to the shareholding plan. Upon expiration of the shareholding plan, theshareholding plan shall terminate automatically, and it may be extended upon the consent ofmore than half of the members of the management Committee and the approval of the board ofdirectors. Upon expiration of the lock-up period, the stock rights and interests held in the stockholding plan will be disposed according to the assessment results of the company's performanceobjectives. The performance assessment of the shareholding plan requires that the operatingrevenue in 2021 should increase by no less than 15% compared with 2020 and the operatingrevenue in 2022 should increase by no less than 15% compared with 2021. If the performanceassessment indicators are not reached, all the underlying stock rights and interests held in theshareholding plan shall be recovered by the management Committee and sold at an appropriatetime after the expiration of the lock-up period and shall be returned to the holder on the basis ofthe lower investment amount and the sold amount (after deducting relevant expenses), and theremaining profits shall be enjoyed by the Company.
A total of 9,118,384 shares were subscribed in the ESOP at an average price of CNY 103.73 pershare, The total subscription amount was CNY 945,850,000.00, which was written off from thecompany's inventory shares, and the transfer registration were completed on September 10, 2021.
The fair value of the repurchased shares subscribed in the ESOP is determined to be CNY
130.58 per share, and the total amount of expenses recognized in the current period is CNY40,703,820.01, which is included in capital reserve - Other capital reserve
XI. Commitments and contingencies
1. Significant commitments
Significant commitments as of the balance sheet dateBy the end of 31 December 2021, there were no significant commitments needed to bedisclosed.
2. Contingencies
(1) Significant contingencies as of the balance sheet date:
By the end of 31 December 2021, there were no significant commitments needed to bedisclosed.
(2) If no contingencies that need to be disclosed, statement should be made.
The Company has no significantl contingencies to disclose.
XII. Post balance sheet event
1. Profit distribution
Unit: CNY
Profits or dividends to be distributed
Profits or dividends to be distributed | 27,801,336,778.06 |
Profits or dividends declared for distribution after being approved | 4,519,335,222.00 |
2.Descriptions of other events subsequent to the balance sheet date
Regarding the tort liability dispute case of ICBC Zhengzhou Jiefang Road Branch, Su WineGroup Trade Co., Ltd. applied for a claim, requesting the defendant to jointly and severallycompensate the plaintiff with CNY 46,025,000.00 of principal and interest loss during the depositperiod (The interest loss is based on CNY 103,250,000.00 and it is calculated from 21 May, 2014according to the loan interest rate of the People's Bank of China in the same period and the samefile. Among those, CNY 18,257,000.00 is calculated till 8 September 2017, CNY 38,968,000.00 iscalculated till 13 December 2017, and CNY 46,025,000.00 is calculated till the actual date ofpayment). 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 the defendantwas ordered to pay the plaintiff Su Wine Group Trade Co., Ltd. ,CNY22,942,500.00 loss of interest(the calculation method of interest: the interest rate standard is calculated according to theone-year fixed deposit interest rate on the day of 21 May 2013 of the Industrial and CommercialBank of China Zhengzhou Jiefang Road Branch, where CNY 90 million is the principal from 21 May2013 to 7 September 2017; CNY 71.7430 million is calculated from 8 September 2017 to 12December 2017; CNY 32.7750 million is calculated from 13 December2017to the date of actualpayment. The sum of the interest calculated above is multiplied by 70%.) 2020 Annual Report ofJiangsu Yanghe Distillery Su Wine Group Trade Co., Ltd. dissatisfied with the above judgment andhas appealed to the Jiangsu Provincial Higher People's Court. On 9 July 2021, Jiangsu ProvincialHigher People's Court (2019) Su Min Zhong No. 1157 "Notice of Acceptance of the Case" wasreceived. The judgment is as follows: Dismissing the appeal and the original judgment is affirmed.This judgment is a final judgment.
On September 10, 2021, Su Wine Group Trade Co., Ltd. received the above compensation andinterest (RMB 35,044,018.96) transferred from the Industrial and Commercial Bank of ChinaHenan Branch.
ICBC Zhengzhou Jiefang Road Branch refused to accept the final judgment of Jiangsu ProvincialHigh People's Court, Apply to the Supreme People's Court of the People's Republic of China for aretrial. On March 18, 2022,Su Wine Group Trade Co., Ltd. received the Notice of Supreme Court Ofthe People's Republic of China (2022) Supreme Court Minshen 309.As of April 27, 2022, the case isin the process of retrial.
As of April 27, 2022, the Company has no other post-balance sheet events that need to bedisclosed except the above.
XIII. Notes to major items of financial statements of parent company
1. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: CNYProvision for bad debts by individual
Unit: CNY
Name of client
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 | |
Other portfolio | 424,595,684.45 | ||
Total | 424,595,684.45 | -- |
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, taxrefunds receivable, collection and withholding of funds. By referring to the historical credit loss experience and combining the current situation and the forecast ofthe future economic situation, the company compiled a comparison table between the overdue age of receivables and the expected credit loss rate of the wholeduration to calculate the expected credit loss.
Type | Closing balance | Opening balance | ||||||||
Carrying balance | Credit loss provision | Book value | Carrying balance | Credit loss provision | Book value | |||||
Amount | Percentage (%) | Amount | Proportion of provision | Amount | Percentage (%) | Amount | Proportion of provision | |||
Including: | ||||||||||
Provision for bad debts by portfolio | 424,595,684.45 | 100.00% | 424,595,684.45 | 387,657,700.12 | 100.00% | 387,657,700.12 | ||||
Including: | ||||||||||
Risk portfolio | ||||||||||
Other portfolio | 424,595,684.45 | 100.00% | 424,595,684.45 | 387,657,700.12 | 100.00% | 387,657,700.12 | ||||
Total | 424,595,684.45 | 100.00% | 424,595,684.45 | 387,657,700.12 | 100.00% | 387,657,700.12 |
Provision for bad debts by portfolio :
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 the relevantinformation of provision for bad debt by referring to the disclosure method of other receivables :
Applicable √ N/A
Name of portfolio
Name of portfolio | Closing balance | ||
Accounts receivables | Provision for bad debt | Proportion |
Analysis by aging
Unit: CNY
Aging
Aging | Closing balance |
Within 1 year (including 1 year) | 424,595,684.45 |
Total | 424,595,684.45 |
(2) Top five entities with the largest balances of the accounts receivables
Unit: CNY
Company’sname | Closing balance | Proportion in the total accounts receivables (%) | Provision amount |
Siyang Lantu Liquor Operation Co., Ltd. | 315,543,651.44 | 74.32% | |
Hubei Lihuacun Liquor Industry Co., Ltd. | 103,684,944.60 | 24.42% | |
Ningxiang Miluochun Trade Co., Ltd. | 5,183,266.40 | 1.22% | |
Jiangsu Shuanggou Liquor Operation Co., Ltd. | 183,822.01 | 0.04% | |
Total | 424,595,684.45 | 100.00% |
2.Other receivables
Unit: CNY
Item | Closing balance | Opening balance |
Dividend receivable | 1,812,736,853.55 | 1,775,818,203.33 |
Other receivables | 399,089,264.75 | 8,627,951,102.36 |
Total | 2,211,826,118.30 | 10,403,769,305.69 |
(1) Dividend receivable
Unit: CNY
Item | Closing balance | Opening balance |
Jiangsu Shuanggou Distillery Stock Co., Ltd. | 1,775,818,203.33 | 1,775,818,203.33 |
Suqian Su Wine Logistics Co., Ltd. | 35,000,000.00 | |
Jiangsu Yanghe Weiketang Network Technology Co. , Ltd. | 1,918,650.22 | |
Total | 1,812,736,853.55 | 1,775,818,203.33 |
(2) Significant dividend receivable for more than 1 year
Unit: CNY
Project | Closing balance | aging | Reasons for non-recovery | impairment and its judgment basis |
Jiangsu Shuanggou Distillery Stock Co., Ltd. | 1,775,818,203.33 | 1-2years | not recovered Temporarily | No |
Total | 1,775,818,203.33 | -- | -- | -- |
3 Other receivables
(1) Disclosure of other receivable by nature
Unit: CNY
Nature of other receivables | Closing balance | Opening balance |
Payments by related parties within the Group | 397,751,387.98 | 8,625,917,478.43 |
Guarantee deposit | 15,060,000.00 | 15,020,000.00 |
Business loans and petty cash | 575,275.71 | 1,203,377.75 |
Other receivables | 2,527,992.51 | 3,768,716.91 |
Total
Total | 415,914,656.20 | 8,645,909,573.09 |
(2) Provision for bad debt
Unit: CNY
Provisions fordebts | Phase 1 | Phase2 | Phase 3 | Total |
Future 12-month ECL | Lifetime ECL (without credit impairment) | Lifetime ECL (with credit impairment) | ||
Balance as at 1 January 2021 | 83,005.77 | 17,875,464.96 | 17,958,470.73 | |
Change of opening balance as at 1 January 2021 in current period | ||||
Provisionin 2021 | ||||
Reverse in 2021 | 25,079.28 | 1,108,000.00 | 1,133,079.28 | |
Balance as at 31 December 2021 | 57,926.49 | 16,767,464.96 | 16,825,391.45 |
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) | 377,596,054.74 |
1-2 years | 7,764,186.25 |
2-3 years | 8,830,032.00 |
Over 3 years | 21,724,383.21 |
3-4 years | 848,000.00 |
4-5 years | 291,400.00 |
Over 5 years | 20,584,983.21 |
Total | 415,914,656.20 |
(3) Provision, recovery or reversal for bad debt during this period
Provision for bad debt during this period :
Unit: CNY
Category | Opening balance | Changes in the current period | Closing balance | |||
Provision | Recovered or reversed | Writeoff | Other changes | |||
Provision for other receivables bad debt | 17,958,470.73 | 1,133,079.28 | 16,825,391.45 | |||
Total | 17,958,470.73 | 1,133,079.28 | 16,825,391.45 |
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
Company’s Name | Category | Closing balance | Aging | Proportion in total receivables | Provisioning amount at period end |
Guizhou Guijiu Co., Ltd. | Loan | 351,151,923.52 | Within 1 year | 84.43% | |
Siyang County Blue Sky Packaging Service Co., Ltd | Sale of fixed assets | 20,210,379.40 | Within 1 year | 4.86% | |
Jiangsu Juntai Properties Co., Lt., Suqian Guotai Department Store Co., Ltd. | Deposit | 15,000,000.00 | Over 5 years | 3.61% | 15,000,000.00 |
Harbin Binzhou Brewery Co., Ltd. | Loan | 14,577,100.00 | Within 1 year 400,000.00, 1-2 years 460,000.00, 2-3 years 8,830,000.00, 3-4 years 848,000.00, Over 3 years 4,039,100.00 | 3.50% | |
Suqian Su Wine Logistics Co., Ltd. | Loan | 7,505,495.46 | Within 1 year 211,309.21, 1-2 years 7,294,186.25 | 1.80% | |
Total | -- | 408,444,898.38 | -- | 98.20% | 15,000,000.00 |
3. Long-term equity investments
Unit: CNY
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairmentprovision | Book value | |
Investment in subsidiaries | 7,994,556,728.17 | 7,994,556,728.17 | 7,964,291,378.23 | 7,964,291,378.23 | ||
Total | 7,994,556,728.17 | 7,994,556,728.17 | 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 balanceof provision for impairment | |||
Increase | Decrease | Provision for impairment | Others | ||||
Suqian Yanghe Guibinguan Co., Ltd. | 700,000.00 | 700,000.00 | |||||
Jiangsu Shuanggou Distillery Stock Co., Ltd. | 1,713,152,320.00 | 4,147,560.97 | 1,717,299,880.97 | ||||
Su Wine Trade Group Co., Ltd. | 285,225,078.23 | 21,017,788.97 | 306,242,867.20 | ||||
Jiangsu Yanghe Liquor Operation | 10,983,280.00 | 10,983,280.00 |
Management Co.,Ltd
Management Co., Ltd | |||||||
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 WineGroup 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 Lionand 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 Hong Kong Liquor Co., Ltd. | 18,000,000.00 | 18,000,000.00 | |||||
Jiangsu Jiushang Internet Technology Co., LTD. | 5,100,000.00 | 5,100,000.00 | |||||
Total | 7,964,291,378.23 | 5,100,000.00 | 25,165,349.94 | 7,994,556,728.17 |
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 | 9,855,981,149.71 | 5,134,136,876.95 | 9,161,576,332.09 | 4,195,871,188.04 |
Other business | 620,861,040.12 | 558,762,391.77 | 653,598,000.33 | 607,411,453.26 |
Total | 10,476,842,189.83 | 5,692,899,268.72 | 9,815,174,332.42 | 4,803,282,641.30 |
Information relating to revenue
Unit: CNY
Category of Contract
Category of Contract | Segment 1 | Segment 2 | Total | |
Commodity type | ||||
Including: | ||||
By operating region | ||||
Including: | ||||
Type of market or customer | ||||
Including: | ||||
Type of contract | ||||
Including: | ||||
By the time of commodity transfer | ||||
Including: | ||||
By contract term | ||||
Including: | ||||
By Selling channel | ||||
Including: | ||||
Total |
Information relating to performance obligationsNoneInformation relating to the transaction price apportioned to the remaining performanceobligations:
At the end of this report, the amount of revenue corresponding to the performance obligationswith the contracts signed but not performed or not performed is CNY 21,199,823,390.34, ofwhich CNY 12,048,368,518.30 is expected to be recognized in 2022, and CNY 9,151,454,872.04 isexpected to be recognized in 2023. CNY 0.00 is expected 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 | 3,816,035,295.48 | 6,249,926,000.50 |
Investment income from disposing long- term equity investments | ||
Investment income from financial assets held for trading during the holding period | 10,199,080.04 | 6,204,748.21 |
Investment income from disposal of financial assets held for trading | 198,932,628.59 | 212,610,583.98 |
Total | 4,025,167,004.11 | 6,468,741,332.69 |
XIV. Supplementary information
1. Detailed statement of non-recurring profits and losses
Applicable √ N/A
Unit: CNY
Item | Amount | Notes |
Profit or loss from disposal ofnon-current assets
Profit or loss from disposal of non-current assets | -10,687,905.76 | |
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 Company and given a fixed amount or quantity in accordance with the state's uniform standards) | 87,366,302.47 | |
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 | 153,349,470.08 | |
Reversal of the impairment provision for receivables subject to separate impairment test | 12,009,031.70 | |
Other non-operating income and expense except the items mentioned above | -31,556,128.88 | |
Other profit and loss items that conform to the definition of non-recurring profits and losses | 3,484,445.51 | |
Less: Effect of income tax | 79,096,331.61 | |
Effect of minority equity | -55,656.60 | |
Total | 134,924,540.11 | -- |
Specific details of other profit and loss items that conform to the definition of non-recurringprofits and lossesApplicable √ N/AThe Company does not have any Specific details of other profit and loss items that conform to thedefinition of non-recurring profits and lossesStatement for extraordinary gain and loss items that the Company defines according to thedefinition in “Explanatory Announcement of Information Disclosure of Company that IssuesSecurities publicly No.1- Extraordinary Gain and Loss” and definition of recurrent gain and lossitems that are listed as extraordinary gain and loss in the “Explanatory Announcement ofInformation Disclosure of Company that Issues Securities publicly NO. 1- Extraordinary Gain andLoss”:
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 toordinary shareholders of theCompany
Net profits attributable to ordinary shareholders of the Company | 18.55% | 5.0141 | 5.0141 |
Net profits attributable to ordinary shareholders of the Company after deduction of extraordinary gain and loss | 18.22% | 4.9239 | 4.9239 |
3. Other