YantaiChangyuPioneerWineCo.,Ltd.
2022AnnualReport
Final2023-01
April13,2023
Contents
I、
ImportantNotice,ContentsandDefinition ...... 3II、BriefIntroductionfortheCompanyandMainFinancialIndicators ...... 6
III、ManagementDiscussionandAnalysis ...... 11
IV、CorporateGovernance ...... 34
V、EnvironmentalandSocialResponsibility ...... 43
VI、Majorissues ...... 61
VII、ChangesinSharesandShareholders’Situation ...... 70
VIII、RelatedSituationofPreferredShares ...... 79
IX、RelatedSituationofBonds ...... 79
X、FinancialReport ...... 79
2022AnnualReport
I.ImportantNotice,ContentsandDefinitionTheboardofdirectors，theboardofSupervisors，directors,supervisorsandseniorexecutivesoftheCompanyguaranteethetruthfulness,accuracyandcompletenessofthecontentscontainedinthereportwithnofalserecords,misleadingstatementsorsignificantomissions,andundertakeindividualandjointlegalliabilities.Mr.HongjiangZhou(PersoninchargeoftheCompany),Mr.JianxunJiang(Personinchargeofaccountingwork)andMs.CuimeiGuo(Personinchargeofaccountingorgan&Accountantincharge)assurethetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.Exceptforthefollowingdirector,otherdirectorsattendedthisboardmeetingforreviewingthisannualreportinperson.
Nameofdirectornotattendingthemeetingpersonally
| Nameofdirectornotattendingthemeetingpersonally | Positionofdirectornotattendingthemeetingpersonally | Reasonofnotattendingthemeetingpersonally | Nameofentrustee |
| AldinoMarzorati | Director | Onabusinesstrip | EnricoSivieri |
Forward-lookingstatementssuchasfutureplansanddevelopmentstrategiescoveredinthisreportdonotconstituteasubstantialcommitmentoftheCompanytoinvestors.Investorsareadvisedtopayattentiontoinvestmentrisks.Aboutsignificantrisksthatmaybefacedinproductionandoperationprocess,pleasereferto“(5)PotentialRisks”of“11.ExpectationfortheCompany’sFutureDevelopment”inthe“III.ManagementDiscussionandAnalysis”ofthisreport.Investorsareadvisedtoreadcarefullyandpayattentiontoinvestmentrisks.TheCompany’spreliminaryschemeofprofitdistributiondeliberatedandpassedbytheboardofdirectorsthistimeisshownasfollowing:BasedontheCompany’stotal685,464,000shares,theCompanyplanstopayCNY4.5(includingtax)incashasdividendsforevery10sharestoallshareholdersandsend0bonusshare(includingtax);capitalreservewillnotbetransferredtoequity.
ReferenceDocuments
(1)TheoriginalofAnnualReportautographedbytheChairman.
(2)TheFinancialStatementsautographedandsignedbytheChairman,ChiefAccountantandAccountantincharge.
(3)TheProspectusandPublicOfferingAnnouncementforStockBissuedin1997;TheProspectusofIntentandTheShares’Change&AShare’sPublicOfferingAnnouncementforStockAissuedbythecapitalincreasein2000.
(4)TheoriginalsofalldocumentsandannouncementsthattheCompanymadepublicduringthereportperiodinthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommission.
Definition
DefinitionItem
| DefinitionItem | Refersto | DefinitionContent |
| Company/TheCompany | Refersto | YantaiChangyuPioneerWineCo.,Ltd. |
| ChangyuGroup/ControllingShareholder | Refersto | YantaiChangyuGroupCo.,Ltd. |
| CSRC | Refersto | ChinaSecuritiesRegulatoryCommission |
| SSE | Refersto | ShenzhenStockExchange |
| KPMGHuazhen | Refersto | KPMGHuazhenLLP(LimitedLiabilityPartnership) |
| CNY | Refersto | ChineseYuan |
II.BriefIntroductionfortheCompanyandMainFinancialIndicators
1.Company’sinformation
StockAbbreviation
| StockAbbreviation | ChangyuA,ChangyuB | StockCode | 000869,200869 |
| StockAbbreviationafterAlteration | - | ||
| PlaceofStockListing | ShenzhenStockExchange | ||
| LegalNameinChinese | 烟台张裕葡萄酿酒股份有限公司 | ||
| AbbreviationofChineseName | 张裕 | ||
| LegalNameinEnglish | YANTAICHANGYUPIONEERWINECOMPANYLIMITED | ||
| AbbreviationofEnglishName | CHANGYU | ||
| LegalRepresentative | HongjiangZhou | ||
| RegisteredAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCodeofRegisteredAddress | 264000 | ||
| HistoricalChangeinRegisteredAddress | No | ||
| OfficeAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCodeofOfficeAddress | 264000 | ||
| Website | http://www.changyu.com.cn | ||
| webmaster@changyu.com.cn | |||
2.Contactpersonandinformation
| SecretarytotheBoardofDirectors | AuthorizedRepresentativeofSecuritiesAffairs | |
| Name | Mr.JianxunJiang | Mr.TingguoLi |
| Address | 56DamaRoad,Yantai,Shandong,China | 56DamaRoad,Yantai,Shandong,China |
| Tel. | 0086-535-6602761 | 0086-535-6633656 |
| Fax. | 0086-535-6633639 | 0086-535-6633639 |
| jiangjianxun@changyu.com.cn | stock@changyu.com.cn |
3.Informationdisclosureandfilinglocation
| Stockexchangewebsitefordisclosingannualreport | ShenzhenStockExchange(http://www.szse.cn) |
| Medianameandwebsitefordisclosingannualreport | ChinaSecuritiesNewspaper,SecuritiesTimes,HongKongCommercialDailyandCNINFOwebsite(http://www.cninfo.com.cn) |
| FilinglocationoftheCompany’sannualreport | BoardofDirectors’OfficeoftheCompany,56DamaRoad,Yantai,Shandong |
4.Registrationchanges
ChangesforthemainbusinessesoftheCompanysinceitwaslisted
| ChangesforthemainbusinessesoftheCompanysinceitwaslisted | ThebusinessscopedeterminedbytheCompanywhenitwasestablishedonSeptember18th,1997isproduction,processingandsalesofwine,distilledliquor,healthyliquor,fruitliquor,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachine.OnApril17th,2008,approvedbythe2007AnnualShareholders’Meeting,theCompany’sbusinessscopewaschangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachines;licensedimportandexport.OnMay12th,2010,approvedbythe2009AnnualShareholders’Meeting,theCompany’sbusinessscopewaschangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialanditsproductsandwinemakingmachinery;licensedimportandexport;externalinvestmentsubjecttonationalpolicy.OnSeptember23rd,2016,approvedbyThe1stInterimShareholders’Meetingin2016,theCompany’sbusinessscopewaschangedtoproductionofwineandfruitwine(bulkwine,processingandfilling);productionofblendingliquorandotherblendingliquors(grapeliqueur);productionofotherliquors(otherdistilledliquors);production,processingandsalesofpackingmaterialandwinemakingmachines;grapeplantationandprocurement;tourismresourcesdevelopment(excludingtourism);packagingdesign;activityofbuildingrental;licensedimportandexport;warehousebusiness;externalinvestmentsubjecttonationalpolicy. |
| Changesforallpreviouscontrollingshareholders | No |
5.OtherrelevantinformationTheaccountingfirmappointedbytheCompany
| Name | KPMGHuazhenLLP |
| Address | Level8,No.2EastWingofDongfangSquare,No.1EastChang’anStreet,Beijing |
| Nameofsignatoryaccountants | Ms.TingWang,Ms.HuiJiang |
ThesponsorinstitutionappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Available?NotavailableThefinancialadviserappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Available?Notavailable
6.KeyaccountingdataandfinancialindicatorsWhethertheCompanyneedstoretrospectivelyadjustorrestatetheaccountingdataofpreviousfiscalyears.
□Yes?No
Thelowerofthenetprofitsbeforenon-recurringgainsandlossesandafternon-recurringgainsandlossesinrecentthreefiscalyearsisnegativeandtheauditreportinrecentoneyearindicatesthereisuncertaintyintheCompany’ssustainableoperationability□Yes?NoThelowerofthenetprofitsbeforenon-recurringgainsandlossesandafternon-recurringgainsandlossesisnegative□Yes?No
7.DifferencesinaccountingdataunderPRCaccountingstandardsandinternationalaccountingstandards
2022
| 2022 | 2021 | Increase/decreasecomparedwithlastyear(%) | 2020 | |
| Operatingrevenue(CNY) | 3,918,941,160 | 3,953,067,583 | -0.86% | 3,395,402,001 |
| Netprofitattributedtoshareholdersofthelistedcompany(CNY) | 428,681,411 | 500,102,606 | -14.28% | 470,860,587 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses(CNY) | 413,831,359 | 472,235,962 | -12.37% | 397,655,187 |
| Netcashflowsfromoperatingactivities(CNY) | 868,876,647 | 1,125,382,658 | -22.79% | 505,146,673 |
| Basicearningspershare(CNY) | 0.63 | 0.73 | -13.70% | 0.69 |
| Dilutedearningspershare(CNY) | 0.63 | 0.73 | -13.70% | 0.69 |
| Weightedaverageforearningrateofnetassets(CNY) | 4.09% | 4.84% | -0.75% | 4.57% |
| December31,2022 | December31,2021 | Increase/decreasecomparedwithlastyear-end(%) | December31,2020 | |
| Totalassets(CNY) | 13,171,506,378 | 13,472,009,754 | -2.23% | 13,102,481,541 |
| Netassetsattributedtoshareholdersofthelistedcompany(CNY) | 10,579,053,733 | 10,447,884,183 | 1.26% | 10,267,832,644 |
(1)DifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandards
□Available?NotavailableTherearenodifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
(2)DifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandards
□Available?NotavailableTherearenodifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
8.Keyfinancialindicatorsbyquarter
Unit：
CNY
stQuarter
| 1stQuarter | 2ndQuarter | 3rdQuarter | 4thQuarter | |
| Operatingrevenue | 1,165,989,959 | 787,102,176 | 857,930,890 | 1,107,918,135 |
| Netprofitattributedtoshareholdersofthelistedcompany | 290,587,744 | 67,871,859 | 75,890,351 | -5,668,543 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses | 284,168,658 | 60,140,364 | 68,081,711 | 1,440,626 |
| Netcashflowsfromoperatingactivities | 299,300,737 | 306,972,858 | 132,417,260 | 130,185,792 |
Whethertherearesignificantdifferencesbetweentheabovementionedfinancialindicatorsortheirsumandtherelatedfinancialindicatorsinthequarterlyreportsandsemi-annualreportsdisclosedbytheCompany.□Yes?No
9.Itemandamountofnon-recurringprofitandloss?Available□Notavailable
Unit：CNY
| Item | 2022 | 2021 | 2020 | Explanation |
| Profitsandlossesondisposalofnon-currentassets(includingtheprovisionforassetimpairmentwrite-offpart) | -18,902,024 | -15,364,993 | -1,165,162 | |
| Governmentgrantsrecordedintothecurrentprofitsandlosses(exceptforthosegovernmentgrantsthatarecloselyrelatedtotheenterprise’snormaloperation,inlinewithnationalpolicyprovisionsandinaccordancewithcertainstandardquotaorrationcontinuedtoenjoy) | 33,145,440 | 48,240,741 | 73,180,848 | |
| Incomegeneratedfromwhentheinvestmentcostofthesubsidiary,affiliatedbusinessandjointventureislessthanthefairvalueofidentifiablenetassetsoftheinvestedentityshould | 0 |
beenjoyedwhentheinvestmentisacquired
| beenjoyedwhentheinvestmentisacquired | ||||
| Currentnetprofitorlossfromthebeginningoftheperiodtothemergerdateofsubsidiariesarisingfrommergerunderthesamecontrol | 12,715,544 | |||
| Othernon-operatingrevenuesandexpendituresinadditiontotheaforementioneditems | 4,750,614 | 2,328,169 | 10,098,551 | |
| Less：Incometaxeffect | 4,695,173 | 7,306,787 | 21,595,671 | |
| Minorityshareholders’equityeffect(aftertaxes) | -551,195 | 30,486 | 28,710 | |
| Total | 14,850,052 | 27,866,644 | 73,205,400 | -- |
Specificsituationofotherprofitandlossitemsconformingtothedefinitionofnon-recurringprofitandloss
□Available?NotavailableTheredoesnotexistspecificsituationofotherprofitandlossitemsconformingtothedefinitionofnon-recurringprofitandloss.Explanationforregardingthenon-recurringprofitandlossspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLossasrecurrentprofitandloss
□Available?NotavailableThereisnosituationregardingthenon-recurringprofitandlossspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLossasrecurrentprofitandloss.
III.ManagementDiscussionandAnalysis
1.SituationofindustryinwhichtheCompanyoperatesduringthereportperiodIn2022,thedomesticwinemarketcontinuedtodeclineduetotheimpactofthepressurefromotherliquorssuchasBaijiuandbeers.Thesalesvolumeofimportedwineanddomesticwinecontinuedthetrendof“doubledecline”,andtherisingcostsofrawmaterialandpackagingfurtherdraggeddowntheprofitabilityofenterprises.Thevastmajorityofwineenterpriseswereindifficulty,andthedomesticwineindustrywasstillontheedgeofloss.Inthefaceofdifficultiesandchallenges,theCompanypersistedintakingthemarketasthecenter,adheredtothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonlargesingleproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,tookmarket-orientedactiontoacceleratethepaceofbusinessdivisionreform,activelycarryoutcirclemarketingandcontinuetopromotedigitaltransformation.In2022,theCompanyrealizedtheoperatingrevenueofCNY3918.94millionwithayear-on-yeardecreaseof0.86%andthenetprofitattributabletotheparentcompany’sshareholdersofCNY428.68millionwithayear-on-yeardecreaseof14.28%,maintainingtheleadingroleintheindustry.
2.MainbusinessesduringthereportperiodTheCompanyneedtocomplywiththedisclosurerequirementsofFoodandLiquorManufacturingRelatedBusinessesinShenzhenStockExchangeIndustryInformationDisclosureGuidelineNo.3-IndustryInformationDisclosure.
(1)SituationoftheindustryinwhichtheCompanyoperatesDuringthereportperiod,theCompany’smainbusinesswasproductionandoperationofwineandbrandy,thusprovidingdomesticandforeignconsumerswithhealthyandfashionablealcoholicdrinks.Comparedwithearlierstage,therewerenosignificantchangeshappenedtotheCompany’smainbusiness.ThewineindustrythattheCompanyinvolvedinwasstillingrowthstage.Beingaffectedbymanyfactorsincludingslowingdomesticeconomicgrowthandstrongpressurefromalternativesinrecentyears,thecompetitioninthemarketwasfierce,thewineconsumptioncontinuouslydeclined,andalargenumberofwineproductionenterpriseswereonthebrinkofloss,evensomewineenterpriseswereeliminatedfromthemarket.However,seenfromthelongterm,theexistingconsumptionconceptmightchangewiththeincreaseofpeople’sincomelevelandtheirpursuitofarelaxed,romanticandhealthylifestyle.Moredomesticwinewouldbedrunkbypeople,andwinewouldentermoreandmorehouseholdconsumption.Thesituationofcurrentlowaverageconsumptionofdomesticwinewouldgraduallyimprove.TheCompanywasattheforefrontinthedomesticwinemarketandwassignificantlyaheadofmajordomesticcompetitors.
TheCompany’sproductsweredividedintotwoseries:wineandbrandy.Forwine,mainbrandsincludedChangyu,NobleDragon,AFIP,Longyu,GoldenIceValley,Zenithwirl,Vermouth,Rena,BaronBalboa,J.LORMIN,Atrio,KilikanoonandIWCCandsoon.ForBrandy,mainbrandsincludedKoya,Mminni,Pagese,RoulletFransacandsoon.
(2)TheproductionlicensesofmainproductsobtainedbytheCompanyinChina
Producername
| Producername | Foodcategory | Obtainingtime | Obtainingmethod | Foodproductionlicensenumber |
| YantaiChangyuPioneerWineCo.,Ltd. | Alcohol | 2021.06.01 | Approvalfromgovernmentauthority | SC11537060100050 |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd. | Alcohol | 2022.08.22 | Approvalfromgovernmentauthority | SC11511280920745 |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd. | Alcohol | 2021.03.25 | Approvalfromgovernmentauthority | SC11521052200370 |
| NingxiaChateauChangyuMoserXVCo.,Ltd. | Alcohol | 2018.01.25 | Approvalfromgovernmentauthority | SC11564010500657 |
| XinjiangChateauChangyuBaronBalboaCo.,Ltd. | Alcohol | 2017.08.25 | Approvalfromgovernmentauthority | SC11565900100392 |
| YantaiChateauChangyu-CastelCo.,Ltd. | Alcohol | 2021.06.08 | Approvalfromgovernmentauthority | SC11537063600172 |
| ShaanxiChateauChangyuRenaCo.,Ltd. | Alcohol | 2020.10.19 | Approvalfromgovernmentauthority | SC11561040400532 |
| YantaiChateauKoyaBrandyCo.,Ltd. | Alcohol | 2021.01.11 | Approvalfromgovernmentauthority | SC11537063601165 |
(3)ExplanationforothermajoreventsDuringthereportperiod,theredidnotexistthetrademarkownershipdispute,foodqualityissueorfoodsafetyincidentetc.thathadasignificantimpactontheCompany.MajorsalesmodeTheCompany’smainsalesmodewasthedistributionmode,andmainsaleschannelwasofflinesales,thatis,theCompany’sproductsweredistributedtosalesterminalsthroughapproximately4,000distributorsathomeandabroadandultimatelyprovidedtoconsumers.
Distributionmode?Available□Notavailable
(1)Situationofchangeinthenumberofdistributors
Region
| Region | Numberatthebeginningof2022 | Increasednumberduringthisreportperiod | Numberattheendof2022 |
| EasternChina | 1857 | 79 | 1936 |
| SouthChina | 565 | 40 | 605 |
| CentralChina | 476 | -29 | 447 |
| NorthChina | 365 | -7 | 358 |
| NorthwestChina | 184 | -14 | 170 |
| SouthwestChina | 493 | -10 | 483 |
| NortheastChina | 318 | -6 | 312 |
| HongKong,Macao,TaiwanChinaandoverseas | 573 | 29 | 602 |
| Total | 4831 | 82 | 4913 |
(2)TheCompanyanddistributorstookcashspotsettlement,andmainlyadoptedbuyoutdistributionmode.Theratioofsalesinself-ownedexclusiveshopexceeds10%
□Available?NotavailableSalesofonlinedirectselling?Available□Notavailable
| Salesmodel | 2022 | 2021 | ||||
| Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | |
| Distribution | 3,272,506,752 | 1,396,195,485 | 57.34% | 3,263,303,800 | 1,349,422,481 | 58.65% |
| Directsales | 646,434,408 | 284,599,247284,599,247 | 55.97% | 689,763,784 | 298,367,393 | 56.74% |
| Total | 3,918,941,160 | 1,680,794,732 | 57.11% | 3,953,067,584 | 1,647,789,874 | 58.32% |
Thechangeinsalespricesofmajorproductsaccountingformorethan10%oftotaloperatingincomeincurrentreportperiodexceeds30%comparedwiththoseinlastreportperiod
□Available?NotavailableProcurementmodeandprocurementcontent
Unit：CNY’0000
Procurementmode
| Procurementmode | Procurementcontent | Theamountofthemainprocurementcontent |
| Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Rawmaterialssuchasgrapes/bulkwine | 66,633.60 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Packagingmaterials | 41,755.50 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Brewingmaterials | 2,364.30 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Vineyardsupplies | 1,140.30 |
| Contract | Fuelandpower | 4,739.90 |
| Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Otherwinesandderivatives | 2,736 |
Amountofpurchasingrawmaterialsfromcooperativesorfarmersexceeds30%oftotalprocedureamount
□Available?NotavailableTheyear-on-yearchangeinthepriceofmajoroutsourcedrawmaterialsexceeds30%
□Available?NotavailableMajorproductionmodeTheproductionmodeoftheCompanyisself-produce.Manufacturingconsignment
□Available?NotavailableMajorcomponentsofoperatingcostsPleasereferto‘4.Analysisinmainbusiness’inthischapter.YieldandinventoryPleasereferto‘4.Analysisinmainbusiness’inthischapter.
3.AnalysisofcorecompetitivenessComparedwiththeparticipantsinthearenaoftheChinesewinecompetitionsector,theCompanyownsfollowingadvantages:
Firstly,theCompanyhasalargebrandinfluence.Mainbrandsusedhavealonghistory.“Changyu”,“NobleDragon”and“AFIP”areall“Chinafamousbrands”thathavestronginfluenceandgoodreputation.
Secondly,theCompanyhassetupanationwidemarketingnetwork.TheCompanyhasformeda“three-level”marketingnetworksystemmainlycomposedoftheCompany’ssalesmenanddistributorsandtheonlinesalesplatformhashadacertainscaleandstronginfluence,owingstrongmarketingabilityandmarketexploitationability.Thirdly,theCompanyhasstrongscientificprowessandaproductR&Dsystem.Relyingonthecountry’s“State-levelWineR&DCenter”,theCompanyhasownedpowerfulwinemakerteam,masteredadvancedwinemakingtechnologyandproductionprocessesandhadstrongproductinnovationcapacityandperfectqualitycontrolsystem.Fourthly,theCompanyisinpossessionofalotofgrape-growingbasesthatarecompatiblewithitsdevelopmentrequirements.TheCompanyhasdevelopedagreatdealofvineyardsinthemostsuitableareasforwinegrapegrowingsuchasShandong,Ningxia,XinjiangandLiaoning,anditssubsidiaryoverseasenterprisesalsoownmatchinggrapebasesinlocalarea,makingtheoverallscaleandstructuregenerallymeettheCompany’sneedsforfuturedevelopment.Fifthly,productsinhigh,mediumandlow-gradeaswellasvarietiesandcategoriesareallcomplete.Over100varietiesofseriesproductssuchaswine,brandyandsparklingwinecoversvariousgrades,includinghigh,mediumandlow-grade,whichcanmeetdifferentconsumergroups’demands.TheCompanyhastakenthedominantstatusinthedomesticwineindustryaftermanyyears’developmentandhascomparativeadvantagesinthefuturecompetition.Sixthly,theCompanyhasarelativelyperfectmotivationsystem.MostofCompany’semployeesindirectlyholdtheCompany’sequitythroughcontrollingshareholders.Therearehighconsistencybetweenemployeebenefitsandshareholdersbenefits,infavorofmotivatingemployeestocreatevalueforshareholders.Seventhly,theCompanyhassetupflexibleandefficientdecision-makingmechanism.TheCompany’scoremanagementteamalwaysmaintainsaworkingstyleofunityandpragmaticandflexibleandefficientdecision-makingmechanism,whichmakestheCompanycandealwithmarketchangesmorecalmly.Eighthly,theglobalproductioncapacitylayouthasbeenbasicallycompleted.TheCompanyhascompletedproductioncapacitylayoutinChina,France,Chile,Spain,Australiaandothermajorwineproducingcountriesintheworld,enablingmakingbetteruseofglobalhigh-qualityrawmaterialresources,capital,talentsandadvancedproductionprocessesandtechnologiestoprovideconsumerswithdiversifiedqualityproductsandbetterserveconsumers.Basedontheabovereasons,theCompanyhasformedrelativelystrongcorecompetenceandwillmaintainarelativelydominantpositioninthefuturepredictablemarketcompetition.
4.Analysisinmainbusiness
(1)Summarization
Description
| Description | Increaseordecreaseattheendoftheperiodovertheendoflastyear | Causeofsignificantchanges |
| Operatingrevenue | -0.86% | Mainlybecauseofdecreaseinsalesvolume |
| Operatingcost | 2.88% | Mainlybecauseofincreaseintheprocurementcostofrawmaterialsandpackagingmaterials |
| Salesexpense | 3% | Mainlybecauseofincreasedmarketingexpenseandservicefeeresultingfromincreasedmarketinvestment |
| Managementexpense | -3.84% | Mainlybecauseoftheyear-on-yeardecreaseinrentalexpenseandcontractfee |
| R&Dexpense | 41.32% | Mainlybecauseofincreaseinresearchinput,purchasingandupdatingscientificequipment |
| Financialexpense | -65.74% | Mainlybecauseofincreaseininterestincomeanddecreaseinexpenditure |
| Netamountofcashflowgeneratedinoperatingactivities | -22.79% | Mainlybecauseoftheyear-on-yearincreaseinthecashpaidforpurchasingcommodityandreceivinglaborservice |
| Netamountofcashflowgeneratedininvestmentactivities | 18% | Mainlybecauseoftheyear-on-yearincreaseincashreceivedfrominvestmentrecovery |
| Netamountofcashflowgeneratedinfinancingactivities | -23.06% | Mainlybecauseoftheyear-on-yeardecreaseincashreceivedfromloan |
ReviewandsummaryoftheprocessoftheCompany’searly-discloseddevelopmentstrategyandbusinessplanduringthereportperiodDuringthereportperiod,theneedsinthedomesticwineindustrywasstillsmallandthemarketcompetitionwasveryintense.ThisCompanyrealizedtheoperatingrevenueofCNY3918.94millionwithadecreaseof0.86%comparedwithlastyear,lowingthanthetargetfixedatthebeginningoftheyearofrealizingoperatingrevenuenolessthanCNY4.3billion,andrealizedthenetprofitattributabletotheparentcompany’sshareholdersofCNY428.68millionwithadecreaseof14.28%comparedwithlastyear.Themainworksduringthereportperiodwereshownasfollowed:
Firstly,theCompanyacceleratedtheconstructionofbusinessdivisionsystemandimprovedmarketingmeasures.TheLongyuBusinessDivisionstrengtheneditsorganizationalconstruction,developedandlaunchedLongseriesproducts,resetthepricesystem,focusedoncertainmarketingmethods,andpersistedindevelopinggroupbuyersandconsumerstodirectlyreachtheC-end.TheChateauWineBusinessDivisionincreasedthemarketingefforts,reorganizedthebrandsandproductsofeachchateau,developedthemaster-co-signedAFIPJiangyaYunhaigiftboxandtheCastelHuakaiFuguiproductandsoon,andformulatedandpromotedtheoveralllayoutplanning.TheNobleDragonBusinessDivisionimplementedcityclassificationmanagement,strengthenedproductdeliverycontrol,vigorouslypromotedbanquetpromotion,andformulateddistributorfilemanagementmeasures,improvingthemarketenvironmentanddistributorconfidence.The
ImportedWineBusinessDivisionfocusedonsomebrands,furtheroptimizedtheproductstructure,setupclassifiedcities,andlaunchednewproductssuchasKilikanoonCrownandIWCCAoma,whichpromotedthegooddevelopmentofthemarketbrands.TheBrandyBusinessDivisioninsistedonhigh-endfocus,marketfocusandmarketingactionfocus,constantlyimprovedthedistributorsystem,acceleratedthelayoutofKoyadistributors,continuedtosummarizeandpromotethesuccessfulmarketingcasesofKoya,steadilypromotedtheconstructionofKoyaXOCulturalExperienceMuseum,developedandlaunched43°MasterversionofKoyaMen-40products,Koya12-years,Koya20-yearsandKoya1915PanamaMemorialproducts.TheOnlineBusinessDivisionincreasedthesalesproportionofmiddle-and-high-endproducts,rankedfirstamongfivee-commerceplatformssuchasT-mall,Jingdong,Pinduoduo,DouyinandKuaishouduringtheperiodofDoubleEleven.TheTourismDivisionassistedinthecompletionofthemuseumupgradingproject,activelypromotedthestrategiccooperationwithwell-knownculturalandtourismgroupcompanyinChina,andfurtherreducedthenumberofmanagementpersonneloftourismunitsinallopatricplaces.Secondly,theCompanystrengthenedthequalitydetailsmanagementandconstantlyimprovedproductquality.TheCompanyfullyimplementedthe“ProvisionsontheSupervisionandManagementofEnterprises’ImplementationofFoodSafetySubjectResponsibility”,andfurtherimprovedthequalityandsafetymanagementstructure.TheCompanyobtained3newnationalinventionpatentsand1utilitymodelpatent.Twoscientificandtechnologicalachievements,suchas“ResearchonFlavorandStyleCharacteristicsofChineseBrandy”,wereidentifiedas“internationalleadinglevel”byChinaNationalLightIndustryCouncil.Theprojectof“ResearchonKeyCommonIndexesofHighQualityBrandyFlavorandItsApplicationinNationalStandardsandIndustrialization”waslistedinthescienceandtechnologyinnovationprojectsofShandongProvince.Theproject“ResearchandIndustrializationApplicationinKeyBrewingandWine-makingTechnologyofChineseCharacteristic‘CabernetGernischt’GrapeStrain”wonthefirstprizeofScienceandTechnologyProgressofChinaAlcoholicDrinksAssociation.TheCompanyparticipatedin20internationalanddomesticwineandspiritscompetitions,andwon25grandgoldawardsand75goldawards,whichweresignificantlyhigherthanthatin2021.Thirdly,theCompanyorderlyimplementedseriesofactivitiesforthe130thanniversary,enhancingthebrandinfluence.TheCompanysystematicallyorganizedactivitiesrelatedtoChinaWineCultureMonthandthe130thanniversary,includingtheunveilingceremonyof“ChinaWineTimeArtExhibition”,theopeningofChinaWineTechnologyandQualityDevelopmentConference&ChinaAlcoholicDrinksAssociation’s2022AnnualMeetingofNationalWineEvaluationCommittee,thereopeningoftherevitalizedandupgradedWineCultureMuseum,theCCTV“ChineseTypicalSceneryandObjectsCollection”intoChangyu,thefirstVineyardconcertinChinaespeciallyforthe130thanniversaryofChangyu,andstaffphotography/painting/essaycontest.Moreover,itactivelytookparticipationinthecreationofthelarge-scaleurbandevelopmentconvergencemediaprogram“CentralCityofYoung-TipsyYantai·SharingNight”co-sponsoredbyYangshipinofCentralRadioandTelevisionStationandYantaiCity,inwhichtheCompanyimplantedChangyucontentsinmultipleaspectsandfurtherenhancedtheinfluenceofcentury-oldChangyubrand.
Fourthly,theCompanyfurtherimprovedfinancialmanagementandstrengthenedauditsupervision.TheCompanycompletedthekeyexpensesaudit,theassetsintegrityandeffectivenessaudit,theresignationauditto40businessunitmanagers,theinvestigationinbadassetsandeconomicresponsibilityandotherspecialaudit,andconductedresponsibilityinvestigationandpunishmenttothepersonliable.Italsostrengthenedfundmanagement,tookvariousmeasurestosavefinancingcosts,andincreasedfinancialinterestincomethroughstructureddepositsandagreeddepositsetc..TheintelligentreimbursementsystemofMaycurwascarriedouttopromotetheintegrateddevelopmentofbusiness/finance,whichimprovedoperatingefficiency.TheCompanystrengthenedfinancialsupervisionandmanagementinoverseasenterpriseswhoseannualinvestmentscalewasstrictlycontrolled,activelycoordinatedwithbankstorelievethefinancingpressureofoverseasenterprises,andsavedinterestexpenses.Fifthly,theCompanyabodebytheconceptofsafety,andconductedpreventionandsafetyworkinanorderlymanner.Duringthereportperiod,allthecompanypersonnelconsolidatedtheirthinkingandunderstanding,clarifiedthemainresponsibilityofpreventionandcontrol,adheredtotheprincipleof“checkingtheentrancequalification,managingthepersonnel,controllingthematerials,makingthebackupplan”,andstrengthenedclosed-loopmanagement,achievingtheexpectedeffectofpreventionandcontrolandensuringthestabledevelopmentofthemarketandthenormaloperationofthecompany’sbusiness.TheCompanyfirmlyestablishedtheconceptofsafetydevelopment,adheredtothepolicyof“safetyfirst,preventionoriented,comprehensivemanagement”,effectivelystrengthenedsafetymanagement,andputanendtotheoccurrenceofmajorsafetyaccidents.Sixthly,theCompanycarefullyorganizedandsuccessfullycompletedtheacquisitionofgraperawmaterials.Throughscientificorganizationandplanning,theCompanyovercamethedifficultiesofmultipledistributionpointsofgrapebases,largegeographicalspan,tighttimeingrapeacquisitionandprocessing,heavytasks,largelaborintensity,longduration,limitedpersonnelflowandseriousshortageofmanpowerduringthecontrolperiodandsoon,andcompletedthepurchaseworkofgraperawmaterialswithhighqualityandspecifiedquantity,providingreliablerawmaterialguaranteeforfutureproductionandmanagement.
(2)Revenueandcost①Compositionofoperatingrevenue
Unit:CNY
2022
| 2022 | 2021 | Year-on-yearincreaseordecrease(%) | |||
| Amount | Proportioninoperatingrevenue | Amount | Proportioninoperatingrevenue | ||
| Totaloperatingrevenue | 3,918,941,160 | 100% | 3,953,067,583 | 100% | -0.86% |
| Sector-classified | |||||
| Sectorofliquorandalcoholicbeverage | 3,918,941,160 | 100% | 3,953,067,583 | 100% | -0.86% |
| Product-classified | |||||
Wine
| Wine | 2,841,437,996 | 72.51% | 2,834,114,276 | 71.69% | 0.26% |
| Brandy | 990,847,691 | 25.28% | 1,036,164,837 | 26.22% | -4.37% |
| Tourism | 76,422,314 | 1.95% | 73,192,187 | 1.85% | 4.41% |
| Others | 10,233,159 | 0.26% | 9,596,283 | 0.24% | 6.64% |
| Area-classified | |||||
| Domestic | 3,320,757,555 | 84.74% | 3,421,775,481 | 85.09% | -2.95% |
| Overseas | 598,183,605 | 15.26% | 531,292,102 | 14.91% | 12.59% |
| Salesmodel-classified | |||||
| Distribution | 3,272,506,752 | 83.50% | 3,263,303,800 | 82.55% | 0.28% |
| Directsales | 646,434,408 | 16.50% | 689,763,783 | 17.45% | -6.28% |
②Theindustry,product,regionandsalesmodelthataccountforover10%oftheCompany’soperatingrevenueoroperatingprofit?Available□Notavailable
Unit:CNY
| Operatingrevenue | Operatingcost | Grossmargin | Year-on-yearincreaseordecrease(%)ofoperatingrevenue | Year-on-yearincreaseordecrease(%)ofoperatingcost | Year-on-yearincreaseordecrease(%)ofgrossprofitrate | |
| Sector-classified | ||||||
| Sectorofliquorandalcoholicbeverage | 3,918,941,160 | 1,680,794,732 | 57.11% | -0.86% | 2% | 1.21% |
| Product-classified | ||||||
| Wine | 2,841,437,996 | 1,234,184,571 | 56.76% | 0.26% | 4.07% | -2.74% |
| Brandy | 990,847,691 | 406,386,918 | 58.99% | -4.37% | -2.09% | -1.59% |
| Tourism | 76,422,314 | 34,842,151 | 54.41% | 4.41% | -18.66% | 31.18% |
| Others | 10,233,159 | 5,381,092 | 47.42% | 6.64% | 33.13% | -18.08% |
| Area-classified | ||||||
| Domestic | 3,320,757,555 | 1,275,274,611 | 61.60% | -2.95% | -2.61% | -0.16% |
| Overseas | 598,183,605 | 405,520,121 | 32.21% | 12.59% | 16.34% | -3.93% |
| Salesmodel-classified | ||||||
| Distribution | 3,272,506,752 | 1,396,195,485 | 57.34% | 0.28% | 3.47% | -1.31% |
| Directsales | 646,434,408 | 284,599,247 | 55.97% | -6.28% | -4.61% | -0.77% |
UndertheconditionthatthestatisticalcaliberoftheCompany’smainbusinessdataisadjustedduringthereportperiod,theCompany’smainbusinessdataadjustedonthebasisofcaliberattheendofreportperiodinrecentoneyear.□Available?Notavailable
③WhethertheCompany’ssalesrevenueformaterialobjectismorethanlaborservicerevenue?Yes□No
Sector
| Sector | Item | Unit | 2022 | 2021 | Year-on-yearincreaseordecrease(%) |
| Alcoholandalcoholicbeverageindustry | Salesvolume | Ton | 93,004 | 97,499 | -4.61% |
| Yield | Ton | 90,099 | 100,737 | -10.56% | |
| Inventory | Ton | 27,427 | 30,412 | -9.81% | |
| Wine | Salesvolume | Ton | 65,540 | 67,700 | -3.19% |
| Yield | Ton | 66,269 | 67,342 | -1.59% | |
| Inventory | Ton | 16,441 | 16,104 | 2.09% | |
| Brandy | Salesvolume | Ton | 27,464 | 29,799 | -7.84% |
| Yield | Ton | 23,830 | 33,394 | -28.64% | |
| Inventory | Ton | 10,986 | 14,308 | -23.22% |
Explanationonthecausesofover30%year-on-yearchangesoftherelatedcomparisondata□Available?Notavailable④ThefulfillmentofsignificantsalescontractandpurchasecontractsignedbytheCompanyuptothereportperiod
□Available?Notavailable
⑤CompositionofoperatingcostsClassificationofsectorandproduct
Unit:CNY
| Sector | Item | 2022 | 2021 | Year-on-yearincreaseordecrease(%) | ||
| Amount | Proportionintheoperatingcost(%) | Amount | Proportionintheoperatingcost(%) | |||
| Liquorandalcoholicbeverage | Blendingliquor | 878,602,506 | 53.21% | 833,479,062 | 51.93% | 5.41% |
| Packingmaterial | 470,509,666 | 28.50% | 477,555,065 | 29.76% | -1.48% | |
| Wages | 61,024,162 | 3.70% | 59,063,486 | 3.68% | 3.32% | |
| Manufacturingexpenses | 241,018,089 | 14.60% | 234,857,160 | 14.63% | 2.62% | |
| Wine | Blendingliquor | 647,858,697 | 52.49% | 611,321,504 | 51.55% | 5.98% |
| Packingmaterial | 348,031,956 | 28.20% | 328,926,668 | 27.74% | 5.81% | |
| Wages | 39,226,057 | 3.18% | 50,206,319 | 4.23% | -21.87% | |
| Manufacturingexpenses | 199,067,861 | 16.13% | 195,416,595 | 16.48% | 1.87% | |
| Brandy | Blendingliquor | 210,008,018 | 51.68% | 220,058,439 | 53.02% | -4.57% |
| Packingmaterial | 143,071,661 | 35.21% | 147,425,674 | 35.52% | -2.95% | |
| Wages | 9,166,666 | 2.26% | 8,708,416 | 2.10% | 5.26% | |
Manufacturingcost
| Manufacturingcost | 44,140,573 | 10.86% | 38,849,077 | 9.36% | 13.62% |
ExplanationNo⑥Whethertherearechangesofconsolidationscopeduringthereportperiod?Yes□NoDuringthereportperiod,thenewly-establishedYantaiKelidunCateringCo.,Ltdwasincludedinthescopeofconsolidation.Forotherchanges,pleasereferto‘1.Interestsinsubsidiaries’inNote‘VIInterestsinotherentities’inthefinancialstatements.⑦MajorchangesoradjustmentsoftheCompany’sbusinesses,productsorserviceduringthereportperiod
□Available?Notavailable
⑧InformationofmajorsalescustomersandmajorsuppliersTheCompany’smajorsalescustomers
| Thetotalsalesamountofthetopfivecustomers（CNY） | 291,092,248 |
| Theproportionthattotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 7.43% |
| Theproportionthatsalesamountoftherelatedpartyinthetotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 0% |
InformationoftheCompany’s5biggestsalescustomers
| No. | Customername | Salesamount（CNY） | Proportionintotalsalesfortheyear（%） |
| 1 | Rank1st | 180,422,614 | 4.61% |
| 2 | Rank2nd | 40,497,501 | 1.03% |
| 3 | Rank3rd | 27,313,392 | 0.70% |
| 4 | Rank4th | 25,801,683 | 0.66% |
| 5 | Rank5th | 17,057,058 | 0.44% |
| Total | -- | 291,092,248 | 7.43% |
Othersituationexplanationsofmajorcustomers
□Available?NotavailableInformationontheCompany’smainsuppliers
| Thetotalpurchaseamountofthetop5suppliers | 310,187,581 |
| Theproportionofthetotalpurchaseamountofthetop5suppliersintheannualpurchase | 25.99% |
amount
| amount | |
| Theproportionoftherelatedpartypurchaseamountinthetop5supplierpurchaseamountinannualpurchaseamount | 6.89% |
InformationontheCompany’stop5biggestsuppliers
| No. | Suppliername | Purchaseamount(CNY) | Proportionintotalpurchasefortheyear（%） |
| 1 | Rank1st | 84,456,054 | 7.08% |
| 2 | Rank2nd | 82,187,388 | 6.89% |
| 3 | Rank3rd | 62,415,788 | 5.23% |
| 4 | Rank4th | 43,590,163 | 3.65% |
| 5 | Rank5th | 37,538,189 | 3.14% |
| Total | -- | 310,187,581 | 25.99% |
Othersituationexplanationsofmainsuppliers
□Available?Notavailable
(3)Expense
Unit:CNY
| 2022 | 2021 | Year-on-yearincreaseordecrease(%) | Explanationofsignificantchanges | |
| Salesexpense | 1,028,966,138 | 998,954,105 | 3% | Mainlyduetotheincreasedmarketinginvestmentandtheyear-on-yearincreasedmarketingexpensesandlaborcost |
| Managementexpense | 287,605,531 | 299,076,376 | -3.84% | Mainlyduetothedecreaseofleasingcostandcontractfees |
| Financialexpense | 7,256,207 | 21,178,727 | -65.74% | MainlyduetotheincreaseoftheCompany’sinterestincomeanddecreaseofexpenses |
| ResearchandDevelopmentexpense | 15,431,310 | 10,919,262 | 41.32% | MainlyduetotheincreaseinR&Minput,purchasingandupdatingscientificresearchequipment |
TheCompanyneedstocomplywiththedisclosurerequirementsofthefoodandwinemanufacturingindustryassetoutintheGuidanceonSelf-RegulationofListedCompaniesofShenzhenStockExchangeNo.3-IndustryInformationDisclosure.
(4)Researchanddevelopmentinvestment?Available□Notavailable
| Nameofmainresearchanddevelopment | Projectpurpose | Projectprogress | Target | PredictedinfluenceintheCompany’sfuturedevelopment |
project
| project | ||||
| Researchanddevelopmentandindustrializationofsealwortwinemixedwithfruitjuice | Developingnewproduct | Projectapproval | Developmentofsealwortwinemixedwithfruitjuice | ItcouldenrichtheCompany'sproductprofile,meetconsumerdemandandcultivatenewrevenuegrowthpointsfortheCompany. |
TheCompany’sresearchanddevelopmentpersonnel
| 2022 | 2021 | Percentageofchanges(%) | |
| NumberofR&Dpersonnel(person) | 139 | 137 | 1.46% |
| TheproportionofthenumberofR&Dpersonnel | 6.12% | 5.96% | 0.16% |
| EducationalstructureofR&Dpersonnel | |||
| Bachelor | 48 | 48 | 0% |
| Postgraduate | 25 | 23 | 8.70% |
| Doctor | 1 | 1 | 0% |
| BelowBachelor | 65 | 65 | 0% |
| AgestructureofR&Dpersonnel | |||
| Under30-year-old | 35 | 33 | 6.06% |
| 30-to40-year-old | 41 | 41 | 0% |
| Above40-year-old | 63 | 63 | 0% |
TheinvestmentoftheCompany’sR&D
| 2022 | 2021 | Percentageofchanges(%) | |
| R&Dinvestmentamount(CNY) | 15,431,310 | 10,919,262 | 41.32% |
| R&Dinvestmentasapercentageofoperatingincome | 0.39% | 0.28% | 0.11% |
| AmountofR&Dinvestmentcapitalized(CNY) | 0 | 0 | 0% |
| CapitalizedR&DinvestmentasapercentageofR&Dinvestment | 0% | 0% | 0% |
Reasonsandeffectsofmajorchangesinthecompositionofthecompany’sR&Dpersonnel□Available?NotavailableReasonsforthesignificantchangeintheproportionoftotalR&Dinvestmentinoperatingincomecomparedwiththepreviousyear
□Available?NotavailableReasonsforthesubstantialchangesinthecapitalizationrateofR&Dinvestmentanditsrationalityexplanation
□Available?Notavailable
(5)Cashflow
Unit:CNY
Item
| Item | 2022 | 2021 | Year-on-yearincreaseordecrease(%) |
| Subtotalofcashinflowinoperatingactivities | 3,929,156,504 | 3,812,599,382 | 3.06% |
| Subtotalofcashoutflowinoperatingactivities | 3,060,279,857 | 2,687,216,724 | 13.88% |
| Netamountofcashflowgeneratedinoperatingactivities | 868,876,647 | 1,125,382,658 | -22.79% |
| Subtotalofcashinflowininvestmentactivities | 162,953,148 | 104,064,718 | 56.59% |
| Subtotalofcashoutflowininvestmentactivities | 306,991,362 | 279,720,766 | 9.75% |
| Netamountofcashflowgeneratedininvestmentactivities | -144,038,214 | -175,656,048 | 18% |
| Subtotalofcashinflowinfinancingactivities | 641,331,495 | 855,198,786 | -25.01% |
| Subtotalofcashoutflowinfinancingactivities | 1,256,089,072 | 1,354,745,101 | -7.28% |
| Netamountofcashflowgeneratedinfinancingactivities | -614,757,577 | -499,546,315 | -23.06% |
| Netincreaseofcashandcashequivalents | 110,426,571 | 449,661,924 | -75.44% |
Explanationofmaininfluencefactorscontributingtogreatchangesinrelateddataonyear-on-yearbasis□Available?NotavailableExplanationonthecausesofmajordifferencesbetweenthenetcashflowgeneratedbytheCompany’soperatingactivitiesandnetprofitofthisyearduringthereportperiod.
□Available?Notavailable
5.Analysistonon-mainbusiness□Available?Notavailable
6.Assetsandliabilities
(1)Significantchangesofassetscomposition
Unit:CNY
Attheendof2022
| Attheendof2022 | Atthebeginningof2022 | Proportionincreaseordecrease(%) | Explanationonsignificantchanges | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Monetaryfunds | 1,651,454,115 | 12.54% | 1,567,095,993 | 11.63% | 0.91% | Nosignificantchanges |
| Receivables | 343,982,985 | 2.61% | 291,006,410 | 2.16% | 0.45% | Nosignificantchanges |
| Contractassets | 0% | 0% | 0% | Nosignificantchanges | ||
| Inventory | 2,903,398,515 | 22.04% | 2,802,622,520 | 20.80% | 1.24% | Nosignificantchanges |
| Investmentrealestate | 22,115,318 | 0.17% | 24,502,258 | 0.18% | -0.01% | Nosignificantchanges |
| Long-termequityinvestments | 41,371,385 | 0.31% | 46,496,510 | 0.35% | -0.04% | Nosignificantchanges |
| Fixedassets | 6,028,137,972 | 45.77% | 5,687,867,314 | 42.22% | 3.55% | Nosignificantchanges |
| Constructioninprogress | 40,934,161 | 0.31% | 590,172,099 | 4.38% | -4.07% | Nosignificantchanges |
| Right-of-useasset | 139,887,159 | 1.06% | 134,569,039 | 1% | 0.06% | Nosignificantchanges |
| Short-termborrowings | 389,378,480 | 2.96% | 622,066,457 | 4.62% | -1.66% | Nosignificantchanges |
| Contractliability | 165,727,991 | 1.26% | 147,120,716 | 1.09% | 0.17% | Nosignificantchanges |
| Long-termborrowings | 128,112,115 | 0.97% | 176,047,043 | 1.31% | -0.34% | Nosignificantchanges |
| Leaseliability | 109,505,093 | 0.83% | 101,811,588 | 0.76% | 0.07% | Nosignificantchanges |
Foreignassethasahighproportion?Available□Notavailable
Detailsofassets
| Detailsofassets | Formationreasons | Assetsscale | Location | Operationmode | Controlmeasuresforsafeguardingofassetsecurity | Earningcondition | ProportionofoverseasassetsintheCompany’snetassets | Whethertherearesignificantimpairmentrisks |
| HaciendaYVinedosMarquesDelAtrio.SL | Acquisitionofequity | 545,439,787 | Spain | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOonfinancialmanagement. | 17,497,532 | 4.14% | No |
| IndomitaWineCompanyChile,S.p.A. | Establishmentofjointventure | 541,425,857 | Chile | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | 23,561,992 | 4.11% | No |
| KilikanoonEstatePty.,Ltd. | Acquisitionofequity | 186,656,024 | Australia | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | 687,415 | 1.42% | No |
| FrancsChampsParticipationsSAS | Soleproprietorshipestablishment | 220,786,729 | France | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | -1,931,487 | 1.68% | No |
| Otherexplanation | None | |||||||
(2)Assetsandliabilitiesmeasuredatfairvalue□Available?Notavailable
(3)LimitationsofassetsrightsuptotheendofthereportperiodPleaserefertothe‘52.Assetswithrestrictiveownershiptitleorrightofuse’ofthe‘Notestothefinancialstatements’inthisreport’sfinancialreport.
7.Investmentconditionanalysis
(1)Overallsituation
?Available□Notavailable
Investmentamountduringthereportperiod(CNY)
| Investmentamountduringthereportperiod(CNY) | Investmentamountofthesameperiodoflastyear(CNY) | Variation |
| 126,590,000 | 148,020,000 | -14.48% |
(2)Casesofacquiredsignificantequityinvestmentsduringthereportperiod
□Available?Notavailable
(3)Casesofsignificantongoingnon-equityinvestmentsduringthereportperiod?Available□Notavailable
Unit:CNY
| Projectname | Investmentmode | Whetherbelongstofixedassetsinvestment | Involvedsectorsofinvestmentprojects | Investmentamountduringthereportperiod | Accumulatedactualinvestmentamountuptotheendofthereportperiod | Capitalsource | Projectprogress | Estimatedearnings | Accumulatedrealizedearningsuptotheendofthereportperiod | Reasonsforunreachedplanningscheduleandestimatedearnings | Disclosuredate(ifhave) | Disclosureindex(ifhave) |
| YantaiChangyuInternationalWineCityBlendingandCoolingCenter | Self-constructed | Yes | Liquorandalcoholicbeveragesector | 14,980,000 | 1,700,004,100 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | PleaserefertoResolutionAnnouncementofSeventhSessionBoardofDirectors4thMeeting,Resolution |
AnnouncementofSeventhSessionBoardofDirectors
thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors
th
Meeting,ResolutionAnnouncementofEighthSessionBoardofDirectors
th
MeetingandResolutionAnnouncementofEighthSessionBoardofDirectors
th
MeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/)
| YantaiChangyuInternationalWineCityBottlingCenter | Self-constructed | Yes | 45,260,000 | 1,135,370,000 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | AnnouncementofSeventhSessionBoardofDirectors8thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors10thMeeting,ResolutionAnnouncementofEighthSessionBoardofDirectors4thMeetingandResolutionAnnouncementofEighthSessionBoardofDirectors11thMeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/) | |
| OakBarrelProcurementProject | Self-constructed | Yes | 30,550,000 | 178,634,200 | Ownedfund | 90% | 0 | 0 | — | 2021.04.28 | ||
| IntellectualizedUpgradeandRenovationProjectofChangyuWineCultureMuseum | Self-constructed | Yes | 35,800,000 | 50,113,000 | Ownedfund | 100% | 0 | 0 | — | 2022.04.27 | ||
| Total | -- | -- | -- | 126,590,000 | 3,064,121,300 | -- | -- | 0 | 0 | -- | -- | -- |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
(4)Financialassetsinvestment
①Securityinvestmentsituation
□Available?NotavailableTherearenosecurityinvestmentsfortheCompanyduringthereportperiod.②Derivativesinvestment
□Available?NotavailableTherearenoderivativesinvestmentsfortheCompanyduringthereportperiod.
(5)Theusagesituationofraisedcapital□Available?NotavailableTherearenousagesituationsofraisedcapitalfortheCompanyduringthereportperiod.
8.Saleofsignificantassetsandequities
(1)Saleofsignificantassets
□Available?NotavailableTheCompanydidnotsellsignificantassetsduringthereportperiod.
(2)Saleofsignificantequities□Available?Notavailable
9.Analysisofmainholdingandjointstockcompanies?Available?NotavailableSituationofmainsubsidiariesandjointstockcompaniesaffectingover10%oftheCompany’snetprofit
Unit:CNY
Companyname
| Companyname | Companytype | Mainbusiness | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| YantaiChangyuPioneerWineSalesCo.,Ltd. | Subsidiary | Sales | CNY8million | 819,840,140 | 90,700,021 | 2,465,372,547 | 445,740,455 | 364,418,188 |
| YantaiChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY5million | 134,105,090 | 128,804,718 | 835,130,328 | 36,447,058 | 27,533,456 |
| ChangyuTradingCo.,Ltd.inDevelopmentZoneofYantai | Subsidiary | Sales | CNY5million | 76,045,487 | 14,401,839 | 175,831,921 | 63,533,120 | 47,681,793 |
| LaizhouChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY1million | 72,131,787 | 1,000,000 | 264,248,002 | 46,181,296 | 34,716,488 |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
Acquisitionanddisposalofsubsidiariesduringthereportperiod
□Available?NotavailableExplanationonmainholdingandjointstockcompaniesNo
10.SituationofthestructuredsubjectscontrolledbytheCompany
□Available?Notavailable
11.ExpectationfortheCompany’sfuturedevelopmentOnthebasisofourlimitedexperienceandprofessionalskills,theCompanymakesthefollowingjudgmentsonthewineindustryandfuturedevelopment:
(1)ThesectorcompetitionpatternanddevelopmenttrendAffectedbytheincreaseintheuncertaintycausedbytheslowdownofnationalmacroscopiceconomygrowthandotherfactors,thewineconsumptionsceneisblocked,andthemarketspaceisobviouslysqueezedbyotheralcoholicproductsandisgettingsmallerandsmaller.Mostwinecompanieshavesmallscaleswithpoorprofitabilityanddonothavemuchresourcesforcultivatingthemarket.Thewholeindustryhasbeenintheroughforalongtime,andthefullrecoveryofthewinemarketwilltakealonghardtime.Althoughthedevelopmentofthewineindustryiscurrentlyencounteringsomedifficulties,therearealsolotsofpositivefactorsforthedevelopmentoftheindustry.PresidentXIJinpingpointedoutthat‘China’swineindustryhasgreatprospects’whenheinspectedNingxia.Thelocalgovernmentsofallwine-producingregionsareactivelyrespondingtosupportthedevelopmentofthewineindustry.Theatmosphereofdomesticwineconsumptionandtheperceptionofhealthywineconsumptionaregraduallyforming.Youngconsumergroupshavethemomentumtoswitchtowineconsumption.Consumptionofdomesticproductshasgraduallybecomeafashion.Inthelongrun,thehugedevelopmentpotentialhasnotchanged.Insuchacaseoflong-termcoexistenceofopportunitiesandchallenges,asalways,webelievethatthoseenterprisesthatpossessstrongbrandinfluenceandmarketingability,catchtheopportunities,activelytakeadjustments,makefulluseofnewlyemergingandtraditionalsaleschannels,makeeffortstoguideandcultivatewineconsuminggroups,timelysatisfytheconsumers’demandsandprovideproductswithhighcostperformancewillhavetheopportunitytobethefinalwinnerofcompetitions,andthenformanewpatternofthefutureChinesewinemarket.
(2)TheCompany’sdevelopmentstrategyTheCompanywilladheretothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonlargesingleproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,deepenthereformofmarketingsystem,increaseinnovationefforts,firmtheconfidenceindevelopment,findproblemsandgapsfromitsown,do
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
everythingpossibletogivefullpaytoitsownadvantagesandseekmarketbreakthroughsindifficulties.
(3)ManagementplanforthenewyearIn2023,theCompanywilltryitsbesttorealizeoperatingrevenueofnotlessthanCNY4.2billionandcontrolthemainoperatingcostsandthreeperiodexpensesbelowCNY3.3billion.
(4)MeasurestobeadoptedbytheCompanyIntheNewYear,affectedbytheeconomicsituationfromthebeginningofJanuary2023,theCompany,distributors,suppliersandlogisticsenterprisescouldnotworknormallyduetotheinfectedemployees,resultinginayear-on-yeardeclineinsalesvolume.Furthermore,theadversefactorsfacedbyChina’seconomicdevelopment,suchasthedemandcontraction,thesupplyimpactandtheweakeningofexpectation,havenotbeenfundamentallyeliminated,andthedevelopmentsituationofthewineindustryisstillnotoptimistic.TheCompanywillleadanduniteallemployeestofacechallengesanddifficulties,enhanceconfidence,seizeopportunities,andstrivetoachievegreaterdevelopmentwithhighmorale.First,itistoimprovetheassessmentsystemandperfecttheincentivemechanism.TheCompanywillstrengthentheprofit-orientedperformanceassessment,payattentiontotheassessmentincomprehensivegrossprofitrateandthegrossprofitrateofmainproducts,andguidelargeamountsofresourcestoputintomiddle-and-high-endproductsandproductswithhighgrossprofitinordertofurtherenhancetheprofitability.Thecurrentincentivemechanismmainlybasedonsalaryandbonuswillbeimproved,andotherlong-termincentivemechanismswillbeactivelystudiedandpromoted,soastofurthermobilizetheenthusiasmandinitiativeofemployees.Second,itistocontinuetoreformtheorganizationalstructuretobetterservethemarketandconsumers.TheCompanywilldeepenandimprovethesystemofbusinessdivisions,establishclearerboundariesofresponsibilitiesandrightsforbusinessdivisionsintermsofproductresearchanddevelopment,productproduction,productdistribution,humanresourcemanagement,marketorderandinspectionmanagement,financialriskcontrolandstandardizedmanagement,mediareleaseandotherbusinessfunctions,fullydelegatepowertothesixsalesbusinessdivisiontofurthermobilizetheirenthusiasm,andformagoodcompetitionmechanismandrewardandpunishmentmechanismamongallbusinessdivisions,soastomakethebusinessdivisionsystemoperatemoreefficient,betterclosetothemarketandconsumers,improvethespeedofresponsetothemarketandimprovethequalityofservice.Third,itistoadheretotechnologicalinnovationanddevelopproductswithmoreChinesecharacteristics.TheCompanywillfurtherimprovetheproducts’bodydesign,appearancedesign,launchmarketingandotheroperationalcapacity,furtherreducethecostandbettermeetthetasteandpackagingrequirementsofyoungChineseconsumersthroughtechnologicalinnovationinordertoinvigoratethemarketofentry-levelwineandnewvarietyalcoholicdrinksandcultivateandexpandwineconsumptiongroups,andfurtheremancipatethemind,closelycentreontheproductresearchanddevelopmentandtechnologicalinnovationprojects,andhighlightthe“Chinese
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
terroir”fromthebrewing/agingtechnology,blendingtechnologyandpost-treatmenttechnologyandotheraspects.Fourth,itistocontinuetopromotedigitaltransformationandinjectnewimpetusintomarketexpansion.TheCompanywillmakefulluseofconsumercoredatafromvarioussourcesandconvertitintoconsumerdigitalassets.Bystudyingconsumerbehaviorpreferences,theCompanywillbetterguidebusinessactivitiessuchasmarketsegmentation,productresearchanddevelopment,mediainvestment,channelpromotion,brandmarketingandcombinationsalesmethods,soastotrulyempowerbusinessandenhanceenterprisedevelopmentmomentum.Fifth,itistocontinuetopromotethereformofonlinebusinesschannelsandstrivetoexpandthescaleofe-commercebusiness.TheCompanywillcontinuetovigorouslysupportthetraditionale-commercebusiness,consolidateandimprovetheexistingmarketadvantages.ItwillalsostronglydevelopnewchannelsandnewbusinessformssuchasDouyinandprivatedomaininordertooccupyadominantpositioninthecriticalperiodofrapiddevelopmentofnewe-commercebusiness.Inaddition,effectivewaystocontinuouslyenlargethescaleofonlinebusinesswillbeexplored,andgrossprofitmarginmanagementandfinancialstandardizedmanagementwillbestrengthened,soastoassuretheprudentoperationandstrivetoachievesteadygrowthofe-commercebusiness.Sixth,itistostrengthenfinancialmanagementandauditsupervisiontoavoidbusinessrisks.TheCompanywilluseMaycursystemtostandardizeandsortoutkeyexpensesfromthesourceofapplyingforreimbursementinordertoavoidtax-relatedrisks.Thecapitalplanningandcentralizedcontrolincorporatefundswillbeintensifiedtoensurecapitalsafety,improvetheefficiencyofcapitaluseandreducefinancingcosts.Thesupervisionoffundsandoperationofoverseassubsidiarieswillbestrengthenedtopreventfinancialrisks.Moreover,theCompanywillenhancethecomprehensiveauditsupervision,adheretoflightaudit,focusontheprofitauthenticityaudit,accountsreceivableauthenticityaudit,advertisinginputeffectauditanddistributorinventoryaudit,soastoavoidpotentiallossesandpreventtheCompanyfromtherisksofinternalcontrol,taxandlaw.
(5)Potentialrisks①RiskinpricefluctuationofrawmaterialsGrapesaretheCompany’smainrawmaterials.Thegrape’syieldandqualityareaffectedtoacertainextentbythenaturalfactorssuchasdrought,wind,rain,frostandsnow.TheseforcemajeurefactorsgreatlyinfluencethequantityandpriceofthegrapesinthisCompanyordersandaddtheuncertaintytotheCompany’sproductionandoperation.Therefore,theCompanywilllowertherisksthatarelikelytoaffectgrapequalityandresultinpricefluctuationbymeansofexpandingtheself-runvineyards,strengtheningthevineyardmanagementandoptimizingthelayoutofvineyards.②RiskinuncertaintyofmarketinputandoutputTocopewiththecutthroatmarketcompetitionandtomeettheneedsformarketdevelopment,theCompanyhasinputmoreandmorecapitalinthemarketandthesalesexpensehastakenupahigher
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
percentagepointinthebusinessrevenue.Theinput-outputratiowillaffecttheCompany’soperatingresultstoagreatextentandtheriskthatsomeinvestmentsmaynotreachtheexpectationsislikelytooccur.Therefore,theCompanywillstrengthenmarketresearchandanalysis,enhancemarketforecastaccuracyandcontinuetoperfecttheinput-outputevaluationsystemtoensuretheinvestmentsinmarkettobesatisfactoryasexpected.③RiskinproducttransportTheCompany’sproductsarefragileandsenttodifferentplacesallovertheworld,mostlybysea,railwayandexpressway.Thepeakseasonofsalesisusuallyincoldwinterandclosetothespringfestivalwhenmarkethasagreatdemand.Atthattime,thenaturalandhumanfactorssuchasseriousshortageoftransportcapacityresultingfrombusyflowofpeopleandgoods,wind,snow,freezingaswellastrafficaccidentsmakethetransportdepartmentsdifficulttosendproductstomarketsintimeandsafely.Asaresult,itmakesthisCompanyhavetofacetherisksofmissingthepeakseasonofsales.Therefore,theCompanywilladoptallmethodspossiblelikemakingprecisesalespredictionandwelldesignedconnectionofproductionandsales,reasonablyarrangingproductionandtransportmeansandmakinguseofmoreavailablewarehousesindifferentplacestolowerthesekindsofrisks.④RiskininvestmentfaultsTheCompanyinvestedmanyprojectsinthepreviousperiodsandtheinvestmentamountswererelativelylarge.Forindividualproject,owingtotheinfluenceofvariousfactors,itledtohavetherisksoffacingwiththeinvestmentamountoutofbudgetorhardlytakingbacktheexpectedinvestmentearnings.TheCompanywilltakeanadequateargumentandscientificdecision-makingforinvestmentprojects,tryhardtoreduceandavoidinvestmentrisks.⑤RiskinexchangerateTheCompany’soverseassubsidiariesexportproductstomanydifferentcountriesandtheexportamountisrelativelylarge.Theremaybeexchangelossesorgainsduetoexchangeratefluctuation.⑥OtherrisksDuringtheproductionandsalesoftheCompany’sproducts,itmaybeaffectedbyforcemajeuresuchaswars,typhoons,earthquakes,etc..
12.Activityregistrationformforreceptionsofresearch,communication,visitandotheractivitiesduringthereportperiod?Available□Notavailable
Receptiontime
| Receptiontime | Receptionplace | Receptionpattern | Typeofreceptionobject | Receptionobject | Maindiscussedcontentsandprovideddata | Basicsituationindexofreception |
| 2022.06.15 | https://www.ironline.cn/ | Other | Other | InvestorsparticipatingtheCompany’s2021annualonlineperformancepresentation | TherecentproductionandoperationsituationoftheCompany | ThewebsiteofShenzhenStockExchange(https://biz.szse.cn) |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
IV.CorporateGovernance
1.CurrentCorporateGovernanceSituationoftheCompany
(1)Aboutshareholdersandshareholders’meetingTheCompanyhassetuptheDeliberationRulesofShareholders’Meeting,andconvenedtheshareholders’meetingsinstrictaccordancewithrequirementsofstandardopinionsofshareholders’meeting,madethegreatefforttoprovideconvenientconditionsformoreshareholderstoparticipatetheshareholders’meeting,andensuredallshareholderstoenjoysameequityandwellexercisedtheirrights.TheCompanydrewgreatattentiontothecommunicationandexchangewithshareholders,activelyrespondedtheshareholders’inquiryandquestions,andwidelylistenedtothesuggestionsandcommentsfromshareholders.
(2)AbouttheCompanyandholdingshareholderTheCompanyhasindependentbusinessandself-managementcapacity,whichisindependentfromthecontrollingshareholdersinbusiness,staffs,assets,institutionsandfinance.TheBoardofDirectors,BoardofSupervisors,managementteamsandalsointernalinstitutionsareabletooperateindependentlyintheCompany.ThecontrollingshareholdersoftheCompanycouldregulatetheirbehaviorswithoutdirectlyorindirectlyinterferingintheCompany’sdecision-makingandbusinessactivitiesbeyondtheshareholder’smeeting;meanwhile,thereisnocaseofencroachingontheCompany’sassetsanddamagingtheinterestoftheCompanyandminorityshareholders.
(3)AboutthedirectorandboardofdirectorsTheCompanystrictlyappointsalldirectorsinlightofCorporationActandArticlesofAssociations.Thequalificationsofalldirectorsareinlinewiththerequirementsoflawsandregulations.InaccordancewiththerequirementsofCorporateGovernanceGuidelines,theCompanyhascarriedoutthecumulativevotingsysteminthedirectorselection.Atpresent,theCompanyhasfiveindependentdirectorsaccountingforaboveonethirdofalldirectors,andthenumberandpersonnelcompositionofboardofdirectorswasbasicallyinaccordwithrequirementsofregulationsaswellasArticlesofAssociations.AlldirectorsoftheCompanywereabletocarryoutworkinaccordancewiththeRulesofBoardofDirectors’ProcedureandWorkingRulesforIndependentDirectors,punctuallyattendedtheboardofdirectors’andshareholders’meetings,activelytookpartinrelevantknowledgetraining,werefamiliarwiththelawsandregulationsconcerned,hadadeepknowledgeandlongexperienceofpractitioners,andperformedtheirdutiesaccordingtothelawandregulations.TheBoardofDirectorsconvenedthemeetingscomplieswithrelevantlawsandregulations.
(4)AboutsupervisorandboardofsupervisorsTheCompanystrictlyelectedallsupervisorsinlightoftheproceduresstipulatedintheCorporationActandArticlesofAssociations.Atpresent,boardofsupervisorshasthreepeopleamongwhichonesupervisorisrepresentativeforstaff.Thenumberandcompositionofboardofsupervisormeettherequirementsofregulationsandlaws.AllsupervisorsoftheCompanycouldfollowtherequirement
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
ofRulesofBoardofSupervisors’Procedure,insisttheprincipleofresponsibilitytoallshareholders,seriouslyperformtheirduties,effectivelysuperviseandpresenttheirindependentopinionsonimportantissues,interrelateddeals,financialstatus,appointmentofanaccountingfirmandthedutyperformanceofdirectorsandmanagersoftheCompany.
(5)AboutperformanceevaluationandincentivesystemTheappointmentofmanagerswasopenandtransparent,andaccordedwithlawsandregulations.TheCompanyhasestablishedandgraduallyimprovedtheperformanceevaluationstandardandformedefficientincentivesystem,soastoensurethesalaryofstafftobelinkedwithworkperformance.
(6)AboutstakeholdersTheCompanycouldfullyrespectandsafeguardthelegalrightsofthepartywithrelevantbenefit,cooperateactivelywiththestakeholders,jointlydrivetheCompanytodevelopcontinuallyandstably,paygreatattentiontotheissuessuchaslocalenvironmentalprotectionandpublicutilitiesetc.,andfullyassumetheduesocialresponsibility.
(7)AbouttheinformationdisclosureandtransparencyTheCompanyhasappointedtheboardsecretarytoberesponsibleastheheadofinvestorrelationmanagementincludinginformationdisclosure,investorrelationsmanagementandreceptionofshareholders’visitandconsultation.TheCompanyhasalsoassignedChinaSecuritiesNewspaper,SecuritiesTimes,HonkongCommercialDailyandwebsitehttp://www.cninfo.com.cn/todiscloseinformation,punctually,accuratelyandtrulydisclosedanyinformationinthelightofrequirementofrelevantlawsandrules,andalsoensuredallshareholderstohavesameopportunitytoacquireanyinformation.InordertofurtherperfecttheCompany’sgovernancesystem,duringthereportperiod,theCompanyformulatedTheImplementationPlanonStrengtheningtheSafetyManagementof“ThreeKindsofExternalPersonnel”,TheInspectionandEvaluationMeasuresonGrapeBaseInformatizationandAcquisitionSystem,YantaiProductionUnitReformPlanandRemoteProductionUnitReformPlan,andrevisedTheAssessmentMeasuresofFinancialManagementfor2022AnnualProductionSystem,AssessmentMeasuresfor2022QualityManagement,TheMonitoringMeasuresfortheProductQualityandSafetyRisk,TheAssessmentMeasuresfortheResponsibilitySystemofthe2022ContractBase’sResponsiblePersonnelandTheAssessmentMeasuresfortheResponsibilitySystemofthe2022Self-runGrapeBase’sPersonnel.WhetherornotthereissignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandlaws,administrativeregulationsandtheregulationsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
□Yes?NoThereisnosignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandlaws,administrativeregulationsandtheregulationsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
2.Relativetothecontrollingshareholderandactualcontroller,independenceoftheCompanyonensuringthecompany’sassets,personnel,finance,organization,business,etc.
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
(1)PersonnelArrangementTheCompany’sgeneralmanager,deputygeneralmanagersandotherseniorofficers,allofwhomwerepaidbytheCompanyanddidnotholdanyconcurrentadministrativeranksinthecontrollingunits.TheCompanywasentirelyindependentinpersonnelarrangement,conclusionandadjustmentoflaborcontractsthankstoitssoundandindependentsystemforlabor,personalandsalarymanagement.
(2)AssetsTangibleassetsandIntangibleassetsincludingtrademark,industrialpropertyrightandnon-patenttechnologieswereallclearlydividedbetweentheCompanyandthecontrollingshareholders,andalllegalformalitieswerecompleted.Asanindependentlegalentity,theCompanyoperatesindependentlyinaccordancewiththelaw,anddoesnotprovideanyformofguaranteewithitsassetsforshareholders’orindividuals’liabilitiesorotherlegalornaturalpersons.Duetothehistoricalissues,theownershipoftrademarkssuchas“张裕”(Changyu)thattheCompanyispermittedtousethatarestillremainedwiththecontrollingshareholder.Exceptforaverysmallnumberoftrademarkssuchas“张裕”(Changyu),theCompanyhasownershiprightsofthevastmajorityoftrademarksbeingusedbytheCompany,whichensurestheindependenceandcompletenessoftheCompany’sassets.
(3)FinanceTheCompanyisequippedwithindependentfinancedepartment,financialadministratorandfinancialandaccountingstaff,aswellasacomplete,independentandstandardizedfinancialaccountingsystem.TheCompanyalsoopeneditsownbankaccounts,independentandlegallypayingtaxesandworkersinsurancefund.Allfinancialindividualsdonotholdanyconcurrentpostsinassociatedcompaniesandareabletomakefinancialdecisionsindependently.TheCompanyhasitsownauditdepartment,whichisespeciallyresponsiblefortheinternalauditworkoftheCompany.
(4)IndependentInstitutionsTheCompanyhassetupasoundorganizationalframework,inwhichtheBoardofDirectorsandBoardofSupervisorsoperateindependently,nosuperiorandsubordinaterelationshipexistsbetweenthefunctionaldepartmentsofthecontrollingshareholder.TheCompanyhasitsownindependentproduction&businessoffices,andallfunctionaldepartmentsareindependenttoexercisetheirpowersandcarryouttheproductionandbusinessactivitiesindependently.
(5)OperationsTheoperationsoftheCompanyareindependentofthecontrollingshareholders.TheCompanyownsitselfcompletelyindependentsystemscoveringresearchanddevelopment,financialaccounting,laborandhumanresource,qualitycontrol,rawmaterialspurchase,productionandsales,hastheindependentmanagementability,anddoesnothavetheproblemthatentruststhecontrollingshareholderstobuyandselloncommission,norexistthehorizontalcompetitionwithcontrollingshareholders.
3.SituationforHorizontalCompetition□Available?Notavailable
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
4.Informationfortheshareholders’meetingandinterimshareholders’meetingheldduringthereportperiod
(1)Informationfortheshareholders’meetingduringthereportperiod
Session
| Session | Meetingtype | Participationratioofinvestors | Conveningdate | Disclosuredate | MeetingResolution |
| 2021AnnualShareholders’Meeting | Annualshareholders’Meeting | 60.42% | 2022.05.27 | 2022.05.28 | Themeetingdeliberatedandapprovedthe2021AnnualBoardofDirectors’WorkReport,2021AnnualBoardofSupervisors’WorkReport,2021AnnualReport,Proposalon2021AnnualProfitDistribution,Proposalon2022AnnualFinancialBudget,ProposalonChangingLicenseUseModeof‘Changyu’Trademarks,ProposalonAppointingCertifiedPublicAccountantsFirm,ProposalonReelectionofBoardofDirectors,ProposalonAppointingIndependentDirectorsandProposalonReelectionofBoardofSupervisors. |
(2)Requestforconveninginterimshareholders’meetingbypreferredshareholdersowingrecoveredvotingright□Available?Notavailable
5.SituationforDirectors,Supervisors,SeniorExecutivesandStaff
(1)Changesinshareholdingsofdirectors,supervisorsandseniorexecutives
| Name | Post | Status | Gender | Age | Beginningdateoftenure | Endingdateoftenure | Sharesheldatthebeginningoftheperiod | Increasedsharesduringtheperiod | Decreasedsharesduringtheperiod | Otherchangesofsharesheld | Sharesheldattheendoftheperiod | Reasonsoftheincreaseanddecreasechangeofsharesheld |
| ZHOUHongjiang | Chairman | Incumbent | M | 58 | 2002.05.20 | 2025.05.28 | 37,800 | 0 | 0 | 0 | 37,800 | |
| LENGBin | Director | Outgoing | M | 60 | 2000.08.22 | 2022.05.27 | ||||||
| SUNJian | Director | Incumbent | M | 56 | 2019.05.17 | 2025.05.28 | 60,000 | 30,000 | 0 | 0 | 90,000 | Secondarymarketpurchases |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
LIJiming
| LIJiming | Director | Incumbent | M | 56 | 2019.05.17 | 2025.05.28 |
| CHENDianxin | Director | Incumbent | F | 56 | 2019.05.17 | 2025.05.28 |
| AldinoMarzorati | Director | Incumbent | M | 70 | 2006.12.07 | 2025.05.28 |
| JIANGJianxun | Director | Incumbent | M | 56 | 2022.05.27 | 2025.05.28 |
| StefanoBattioni | Director | Incumbent | M | 64 | 2020.05.27 | 2025.05.28 |
| EnricoSivieri | Director | Incumbent | M | 54 | 2019.05.17 | 2025.05.28 |
| CHIANGYun | Director | Incumbent | F | 55 | 2020.06.19 | 2025.05.28 |
| LUOFei | Independentdirector | Outgoing | M | 70 | 2016.09.23 | 2022.05.27 |
| DUANChangqing | Independentdirector | Incumbent | M | 58 | 2019.05.17 | 2025.05.28 |
| LIUHuirong | Independentdirector | Incumbent | F | 59 | 2019.05.17 | 2025.05.28 |
| LIUQinglin | Independentdirector | Incumbent | M | 59 | 2019.07.02 | 2025.05.28 |
| YURenzhu | Independentdirector | Incumbent | M | 44 | 2020.05.27 | 2025.05.28 |
| WANGZhuquan | Independentdirector | Incumbent | M | 57 | 2022.05.27 | 2025.05.28 |
| KONGQingkun | ChairmanoftheBoardofSupervisors | Outgoing | M | 50 | 2013.05.14 | 2022.05.27 |
| ZHANGLanlan | Supervisor | Outgoing | F | 53 | 2013.05.14 | 2022.05.27 |
| LENGBin | ChairmanoftheBoardofSupervisors | Incumbent | M | 60 | 2022.05.27 | 2025.05.28 |
| LIUZhijun | Supervisor | Incumbent | M | 42 | 2016.05.26 | 2025.05.28 |
| ZHENGWenping | Supervisor | Incumbent | F | 54 | 2022.05.27 | 2025.05.28 |
| SUNJian | Generalmanager | Incumbent | M | 56 | 2018.01.10 | 2025.06.10 |
| LIJiming | Deputygeneralmanager | Incumbent | M | 56 | 2019.05.28 | 2025.06.10 |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
JIANGHua
| JIANGHua | Deputygeneralmanager | Incumbent | M | 59 | 2001.09.14 | 2025.06.10 | 0 | 10,000 | 10,000 | Secondarymarketpurchases | ||
| PENGBin | Deputygeneralmanager | Incumbent | M | 56 | 2018.01.10 | 2025.06.10 | ||||||
| JIANGJianxun | DeputygeneralmanagerandBoardsecretary | Incumbent | M | 56 | 2019.05.28 | 2025.06.10 | ||||||
| PANJianfu | Generalmanagerassistant | Incumbent | M | 47 | 2018.04.19 | 2025.06.10 | ||||||
| KONGQingkun | Generalmanagerassistant | Incumbent | M | 50 | 2022.06.09 | 2025.06.10 | ||||||
| LIUShilu | Generalmanagerassistant | Incumbent | M | 48 | 2018.04.19 | 2025.06.10 | ||||||
| XIAOZhenbo | Generalmanagerassistant | Incumbent | M | 46 | 2018.04.19 | 2025.06.10 | ||||||
| Total | -- | -- | -- | -- | -- | -- | 97,800 | 40,000 | 0 | 0 | 137,800 | -- |
Isthereanyresignationofdirectorsandsupervisorsanddismissalofseniormanagementpersonnelduringtheirtermofofficeduringthereportingperiod?Yes?NoMr.BinLengnolongerservedasadirectoroftheCompanyduetothechangeofpositionuponexpirationofhistermofoffice;Mr.FeiLuonolongerservedasanindependentdirectoroftheCompanyduetohisageuponexpirationofhistermofoffice;Mr.QingkunKongnolongerservedastheChairmanoftheBoardofSupervisorsoftheCompanyduetothechangeofpositionuponexpirationofhistermofoffice;Ms.LanlanZhangnolongerservedasasupervisoroftheCompanyduetoherageuponexpirationofhertermofoffice.Changesofdirectors,supervisorsandseniormanagersofthecompany?Available?Notavailable
| Name | Post | Status | Date | Reasons |
| LENGBin | Director | Outgoingduetoexpirationofterm | 2022.05.27 | Nolongerservedasadirectorduetothechangeofpositionuponexpirationofterm |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
LENGBin
| LENGBin | ChairmanoftheBoardofSupervisors | Beelected | 2022.05.27 | BeelectedasasupervisoroftheCompanybytheGeneralShareholders’Meeting,andbeelectedastheChairmanoftheBoardofSupervisorsbytheCompany’sBoardofSupervisors |
| LUOFei | Independentdirector | Outgoingduetoexpirationofterm | 2022.05.27 | Nolongerservedasanindependentdirectorduetohisageuponexpirationofterm |
| WANGZhuquan | Independentdirector | Beelected | 2022.05.27 | BeelectedasanindependentdirectoroftheCompanybytheGeneralShareholders’Meeting |
| JIANGJianxun | Director | Beelected | 2022.05.27 | BeelectedasadirectoroftheCompanybytheGeneralShareholders’Meeting |
| KONGQingkun | ChairmanoftheBoardofSupervisors | Outgoingduetoexpirationofterm | 2022.05.27 | NolongerservedastheChairmanoftheBoardofSupervisorsduetothechangeofpositionuponexpirationofterm |
| KONGQingkun | Generalmanagerassistant | Beappointed | 2022.06.09 | BeelectedasageneralmanagerassistantbytheCompany’sBoardofDirectors |
| ZHANGLanlan | Supervisor | Outgoingduetoexpirationofterm | 2022.05.27 | NolongerservedasasupervisoroftheCompanyduetoherageuponexpirationofterm |
| ZHENGWenping | Supervisor | Beelected | 2022.05.27 | BeelectedasasupervisorbytheCompany’sCongressofWorkersandStaff |
(2)SituationforworkexperienceTheprofessionalbackground,mainworkexperiencesandpresentpositionsoftheCompany’sdirectors,supervisorsandseniorexecutives
①MembersofBoardofDirectorsMr.HongjiangZhou,male,58,Chinese,withdoctoraldegree,seniorengineer,usedtobetheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd.,theDeputyGeneralManager,theGeneralManagerandtheDeputyChairmanofYantaiChangyuPioneerWineCo.,Ltd..Heisincumbentastherepresentativeofthe13
th
NationalPeople’sCongress,theChairmanofYantaiChangyuGroupCo.,Ltd.,andtheboarddirectorandtheChairmanoftheCompany.Mr.JianSun,male,56,Chinese,MBA,usedtobetheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectorandtheGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectoroftheGroupCompany.Mr.JimingLi,male,56,Chinese,withdoctoraldegree,applicationresearcher,usedtobetheChiefEngineeroftheCompany.HeisincumbentastheboarddirectorandtheDeputyGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectoroftheGroupCompany.Mr.JianxunJiang,male,56,Chinese,MBAandaccountant,servedastheFinancialManageroftheCompanyfromMay20
th
,2002toJanuary10
th
,2018.Henowservesastheboarddirector,DeputyGeneralManagerandBoardSecretaryoftheCompany.
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
Ms.DianxinChen,female,56,Chinese,withmasterdegreeofthePartySchool;fromJuly1985toOctober2018,sheusedtoserveasstaffofYantaiChemicalPurchasingandSupplyStation,staffofYantaiStated-ownedAssetsAssessmentCenter,theDeputyDirectorofYantaiStated-ownedAssetsAssessmentCenter,theDeputySectionChiefofAssetsAssessmentManagementDepartmentinYantaiState-ownedAssetsBureau,theDeputySectionChiefofAssetsAssessmentManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,full-timeDeputySecretaryofPartybranchinYantaiState-ownedAssetsSupervisionandAdministrationCommission,theSectionChiefofPropertyManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,theDirectorofretiredcardersworkofficeandtheSectionChiefofPropertyManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,andtheDirectorofretiredcardersworkofficeinYantaiState-ownedAssetsSupervisionandAdministrationCommission.SinceOctober2018,shehasbeenservedastheDeputySecretaryofPartybranchandtheGeneralManagerofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.andthecurrentboarddirectorofYantaiChangyuGroupCo.,Ltd.andtheCompany.Mr.AldinoMarzorati,male,70,Italian,withbachelordegree,servescurrentlyastheGeneralManagerofIllvaSaronnoHoldingS.p.A,thememberoftheboardofdirectorsofsomebranchesundertheGroupCompany,andtheboarddirectorofChangyuGroupCo.,Ltd.andtheCompany.Mr.StefanoBattioni,male,64,Italian,graduatedwithabachelor’sdegree.HehasservedasaSeniorProductManagerofColgatePalmoliveinItaly,theMarketingDirectorofBarillaHolding,theInternationalMarketingDirectorandtheSpiritsBusinessUnitDirector-GeneralManagerofIllvaSaronnoS.p.A.(aspiritcompanyasawholly-ownedsubsidiaryofIllvaSaronnoHoldingS.p.A.).HeiscurrentlytheCEOofIllvaSaronnoS.p.A.andtheboarddirectorofChangyuGroupCo,.Ltd.andtheCompany.Mr.EnricoSivieri,male,54,Italian,withbachelordegree,servedsuccessivelyasthefinancialcontrollerofARNEGS.p.a.,thecommercialanalystofSPILLERSFOODSITALIAS.p.a.,thetradecontrollerofNestle’PurinaPetcareEurope,Europeanmarketing&salescontrollerofNestle’PurinaPetcareEurope,theEuropeansupplychaincontrollerofNestle’PurinaPetcareEurope,theSouthernEuroperegionalcontrollerofNestle’PurinaPetcareEuropeandtheDirectorofgroupfinancialcontrollingofIllvaSaronnoHoldingS.p.A.,andcurrentlyservingasamemberoftheboardofdirectorsforRoyalOakDistilleryLtd.andtheGeneralManagerofIllvaSaronnoHoldingS.p.A.,andtheboarddirectoroftheCompany.Ms.YunChiang,female,55,successivelyobtainedBachelorofSciencedegreeMagnaCumLaudefromVirginiaTech,Virginia,EMBAofTheKelloggSchoolofManagementatNorthWesternUniversity,USAandEMBAofTheGraduateSchoolofManagement,HongKongUniversityofScienceandTechnology,HongKong,China.SheusedtoactedasDirectoratAmericanInternationalGroup(AIG)directinvestmentteam,theManagingPartnerofPacificAllianceGroup(PAG).ShecurrentlyservesastheINEDandmemberofAuditCommitteeandNominationCommitteeinLasVegasSandsChina,theINEDandmemberofAuditCommittee,RemunerationsCommitteeandNominationCommitteeinGoodbabyInternationalHoldingLtd.,theINED,memberofAuditCommitteeandNominationCommitteeandChairladyofRemunerationsCommitteeinPacificCenturyPremiumDevelopmentsLtd.,theINEDandmemberofAuditCommitteeandHealth,SafetyandSecurityCommitteeinMerlinEntertainmentsplc.,theCEOand
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
FoundingPartnerofProspereCapital,andtheboarddirectoroftheGroupCompanyandtheCompany.Mr.QinglinLiu,male,59,doctoraldegreeofManagement,Chinese,nooverseaspermanentresidence.HeiscurrentlyaprofessoranddoctoralsupervisorofEconomicsFacultyofShandongUniversity,theDirectorofInstituteforWorldEconomyStudiesofShandongUniversity,theExecutiveDeputyPresidentofShandongInstituteofDevelopmentofShandongUniversity,amemberofacouncilofChinaSocietyofWorldEconomics,anexecutivememberofacouncilofTheAssociationforCanadianStudiesinChinaandShandongYouthScholarsAssociation,amemberofacouncilofShandongAssociationforBusinessEconomicsandShandongPriceAssociation.HecurrentlyservesasanindependentdirectorofShandongXinnengTaishanPowerGenerationCo.,Ltd.,anindependentdirectorofWeihaiHuadongAutomationCo.,Ltd.,andanindependentdirectoroftheCompany.Mr.ChangqingDuan,male,58,Chinese,withdoctoraldegree,professor,doctoralandmaster’ssupervisor,andthenationalseniorwinemakerandseniorwinetaster.HecurrentlyservesasthechiefscientistofnationalgrapeindustrytechnologysystemandtheDirectorofWineProcessingKeyLaboratoryofMinistryofAgricultureandRuralAffairs.Meanwhile,heholdsconcurrentpostsoftheDirectorofChinaWineTechnologyCommittee,theDirectorofChinaWineandFruitWineExpertCommittee,theExecutivePresidentandtheSecretaryGeneralofGrapeandWineBranchofChineseHorticulturalSocietyandtheVicePresidentofChinaAgriculturalSocietyGrapeBranch.Hismajorresearchfieldsarethebasictheoreticalresearchandrelatedhighandnewtechnologyresearchanddevelopmentaswellasapplicationpromotionworkinthedirectionofsuitabilitybetweenecologyinproducingareaandgrapevarietyandliquorvariety,evolvementmechanismanddirectionalbrewingofwineflavorformation,grapefruitflavormetabolismregulationandproductflavorqualityevaluationandsoon.HeisacurrentindependentdirectoroftheCompany.Ms.HuirongLiu,female,59,Chinese,withdoctoraldegree,theformerDeputyDeanandDeanoftheInstituteofPoliticalScienceandLawofOceanUniversityofChina.SheusedtoserveasanindependentdirectorofSailunGroupCo.,Ltd.,LongdaMeatandSacredSunCo.,Ltd.andShandongSacredSunPowerSourcesCo.,Ltd..Currently,sheisasecond-levelprofessoranddoctoralsupervisorofOceanUniversityofChinaandwithadditionalpostasaresearcherofthe“BeltandRoadInitiative”JudicialResearchCenteroftheSupremePeople’sCourt,anexpertattheSupremePeople’sCourtforforeign-relatedcommercialandmaritimeactionexpertdatabase,theDeputyChairmanofthesixthShandongLawSocietyandtheDeputyDirectoroftheAcademicCommittee,andtheChairmanoftheQingdaoLaw-basedGovernmentResearchInstitute.HerresearchfieldsareInternationalLawandLegislativeScience.ShehaswonthetitleofShandongTopTenOutstandingYoungandMiddle-agedJurists,thethirdprizeofExcellentSocialScienceAchievementoftheMinistryofEducation,thethirdprizeofShandongExcellentSocialScienceAchievement,thesecondprizeofShandongExcellentPhilosophyandSocialScienceAchievement,thefirstprizeofExcellentAchievementofShandongEducationDepartmentandtheTopTalentinQingdaoCity.SheisacurrentanindependentdirectoroftheCompany.Mr.RenzhuYu,male,44,Chinese,doctorofmanagement,high-leveltalentsofJinan,usedtoactastheDeputyDirectorofHuanglongNationalScenicAreaAdministrationinAbaprefectureofSichuanprovinceasamemberofthe18thdoctoralteamoftheCentralOrganizationDepartmentandtheCommunistYouthLeagueofChinaandalsoeveractedasmanagingdirectorofShandongAgriculturalEconomySociety.Currently,heservesasaprofessorandamastersupervisorin
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
SchoolofBusinessAdministrationinShandongUniversityofFinanceandEconomics,themanagingdirectorofChineseMarketingAssociationofUniversitiesandanindependentdirectorofthiscompany.Mr.ZhuquanWang,male,57,Chinese,doctorofmanagement(accountancy),firstbatchofnationalaccountingacademicleadingpersonalsofFinancialDepartment,theentrantofaccountantmastercultivationprojectofFinancialDepartment,outstandingteacherofShandongprovince,GovernmentSpecialAllowanceexpert,actedasindependentdirectorfromMay13
th,2010toMay
th
,2013andfromMay23
rd,2014toMay17
th,2019.NowheistheprofessorandthedoctoralsupervisorsoftheOceanUniversityofChinaandalsoholdsaconcurrentpostofindependentdirectorofthiscompanyandQingdaoDoubleStarCo.,Ltd..②MembersofboardofsupervisorsMr.BinLeng,male,60,Chinese,withmasterdegree,senioraccountant,usedtobetheDeputySectionChiefandtheSectionChiefofYantaiAuditBureau,theboarddirectorandtheChiefAccountantofYantaiChangyuGroupCo.,Ltd.andtheboarddirectorandtheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectorandtheGeneralManagerofYantaiChangyuGroupCo.,Ltd.andthechairmanofBoardofSupervisoroftheCompany,withanadditionalpostoftheChairmanandGeneralManagerofYantaiZhongyaMedicalHealthWineCo.,Ltd..Mr.ZhijunLiu,male,42,Chinese,bachelordegree;fromJuly2003toFebruary2019,heusedtoserveasthestaffofworkedinforeignfunddepartmentofEconomyandTradeBureauinLongkouEconomicDevelopmentZone,anewssectionmemberofpropagandadepartmentinLongkouMunicipalCommittee,amemberofpropagandaandmassworksection,amemberofplanningsection,theDeputyDirectorMemberofprogrammingdevelopmentandenterprisedistributionsection,theDeputyDirectorMemberandtheDeputyChiefofprogrammingdevelopmentsection,thesupervisor(sectionchiefrank)oftheDongfangElectronicsCorporationCo.,Ltd.,ShandongLaidongEngineCo.,Ltd.andYantaiPublicTransportationGroupCo.,Ltd.,andasectionchiefrankofYantaiMunicipalAuditBureau;fromMarch2019toJune2020,heservedasthehadoftheequitymanagementdepartmentofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.;fromJune2020topresent,heservesasamemberofthePartyCommittee,thedeputygeneralmanagerandsecretaryoftheboardofdirectorofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.HenowisasupervisoroftheCompany.Ms.WenpingZheng,female,Chinese,54,bachelordegree.Currently,sheistheheadoftheAuditDepartmentoftheCompany.③OtherseniorexecutivesMr.HuaJiang,male,59,Chinese,masterdegree,seniorengineer,hasbeenservingastheDeputyGeneralManageroftheCompanysinceSeptember14
th
,2001.Mr.BinPeng,male,56,MBA,seniorengineer,eversuccessivelyservedastheDepartmentChiefofTechnicalTransformationDepartmentandtheMinisterofInvestmentandDevelopmentDepartmentoftheCompany,aswellastheGeneralManagerAssistantofYantaiChangyuGroupCo.,Ltd..HecurrentlyservesastheDeputyGeneralManageroftheCompany.Mr.JianfuPan,male,Hanethnic,Chinese,47,MBAandsenioreconomist,usedtoserveastheGeneralManageroftheJiangxiBranchoftheCompany,theGeneralManageroftheShanghaimarketingmanagementcompanyandtheGeneralManagerofBeijingmarketingmanagement
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
center.Currently,heisaGeneralManagerAssistantoftheCompanyandtheGeneralManagerofBeijingmarketingmanagementcenterandBeijingChateauAFIP.Mr.QingkunKong,male,50,Chinese,MBAandeconomist,usedtoserveasasectionmemberofproductiondepartmentinthehealthyliquorbranchoffice,aclerkandtheDeputyDirectorandtheDirectorofgeneralmanageroffice,andthechairmanoftheCompany’sBoardofSupervisor.Currently,heservesasaGeneralManagerAssistantoftheCompany.Mr.ShiluLiu,male,Hanethnic,Chinese,48,masterdegree,usedtobetheManagerofTianjinbranchoftheCompany,theCompetenceManagerofNorthChinamarket,theGeneralMangerofBeijingmarketingmanagementcompany,theGeneralManagerofGuangdongmarketingmanagementcenterandtheGeneralManagerofe-commercebranchoftheCompany.Currently,heservesastheGeneralManagerAssistanceoftheCompanyandtheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd..Mr.ZhenboXiao,male,Hanethnic,Chinese,46,MBA,servedastheDeputyManageroftheCompany’smarketstrategydevelopmentcenter,theGeneralManagerofShandongmarketingmanagementcompanyandYantaiChangyuliquorcompany.HecurrentlyservesastheGeneralManagerAssistantoftheCompany.Postintheshareholder’scompany?Available□Notavailable
Name
| Name | Shareholder’sCompany | Post | Beginningdateofthepost | Endingdateofthepost | Paidbyshareholder’scompanyornot |
| ZHOUHongjiang | YantaiChangyuGroupCo.,Ltd. | Chairman | 2018.01.10 | 2026.01.11 | No |
| LENGBin | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | Yes |
| LENGBin | YantaiChangyuGroupCo.,Ltd. | Director&Generalmanager | 2018.01.10 | 2026.01.11 | Yes |
| SUNJian | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| LIJiming | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| CHENDianxin | YantaiChangyuGroupCo.,Ltd. | Director | 2018.11.15 | 2026.01.11 | No |
| AldinoMarzorati | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| EnricoSivieri | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| StefanoBattioni | YantaiChangyuGroupCo.,Ltd. | Director | 2020.04.09 | 2026.01.11 | No |
| CHIANGYun | YantaiChangyuGroupCo.,Ltd. | Director | 2020.05.12 | 2026.01.11 | No |
| Explanationforthepostintheshareholder’scompany | Mr.BinLengalsoholdsconcurrentpostastheChairmanandGeneralManagerofYantaiZhongyaMedicalHealthWineCo.,Ltd.,whichisasubsidiaryofYantaiChangyuGroupCo.,Ltd.. | ||||
Postatothercompanies
□Available?NotavailableDisciplinaryactionstakenbysecuritiesregulatorsinrecent3yearstotheCompany’sdirectors,supervisorsandseniormanagementbothonthejobandleftduringthereportperiod?Available?NotAvailable
(3)Salaryofdirectors,supervisorsandseniorexecutives
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
Thesituationofdecision-makingprocess,thebasisofdeterminationandtheactualpaymentofremunerationfordirectors,supervisorsandseniorexecutivesThesalaryfortheindependentdirectorsispaidaccordingtotheresolutionofshareholders’meeting.Thesalaryforthechairman,directorswithadministrationduty,managersandotherseniormanagementshouldbepaidonbasisoftheevaluationresultaccordingtotheYantaiChangyuPioneerWineCo.,Ltd.ExecutiveCompensationandPerformanceDesign,whichwaspassedduringtheBoardofDirectors’meeting.Salaryofdirectors,supervisorsandseniorexecutivesduringthereportperiod
Unit:CNY’0000
Name
| Name | Post | Gender | Age | Status | TotalrewardfromtheCompanybeforetax | WhethergetrewardfromrelatedpartiesoftheCompany |
| ZHOUHongjiang | Chairman | M | 58 | Incumbent | 149.62 | No |
| SUNJian | DirectorandGeneralManager | M | 56 | Incumbent | 115.77 | No |
| LIJiming | DirectorandDeputyGeneralManager | M | 56 | Incumbent | 85.05 | No |
| JIANGJianxun | Director,DeputyGeneralManagerandBoardsecretary | M | 56 | Incumbent | 87.90 | No |
| CHENDianxin | Director | F | 56 | Incumbent | 0 | Yes |
| AldinoMarzorati | Director | M | 70 | Incumbent | 0 | No |
| StefanoBattioni | Director | M | 64 | Incumbent | 0 | No |
| EnricoSivieri | Director | M | 54 | Incumbent | 0 | No |
| CHIANGYun | Director | F | 55 | Incumbent | 0 | No |
| DUANChangqing | IndependentDirector | M | 58 | Incumbent | 10 | No |
| LIUHuirong | IndependentDirector | F | 59 | Incumbent | 10 | No |
| LIUQinglin | IndependentDirector | M | 59 | Incumbent | 10 | No |
| YURenzhu | IndependentDirector | M | 44 | Incumbent | 10 | No |
| WANGZhuquan | IndependentDirector | M | 57 | Incumbent | 6 | No |
| LUOFei | IndependentDirector | M | 70 | Outgoing | 5 | No |
| LENGBin | Supervisor | M | 60 | Incumbent | 0 | Yes |
| ZHENGWenping | Supervisor | F | 54 | Incumbent | 24.09 | No |
| LiuZhijun | Supervisor | M | 42 | Incumbent | 0 | Yes |
| ZhangLanlan | Supervisor | F | 53 | Outgoing | 14.11 | No |
| JIANGHua | DeputyGeneralManager | M | 59 | Incumbent | 98.70 | No |
| PENGBin | DeputyGeneralManager | M | 56 | Incumbent | 82.45 | No |
| PANJianfu | GeneralManagerAssistant | M | 47 | Incumbent | 63.81 | No |
| KONGQingkun | GeneralManagerAssistant | M | 50 | Incumbent | 58.43 | No |
| LIUShilu | GeneralManagerAssistant | M | 48 | Incumbent | 58.80 | No |
| XIAOZhenbo | GeneralManagerAssistant | M | 46 | Incumbent | 63.31 | No |
| Total | -- | -- | -- | -- | 953.04 | -- |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
6.Performanceofdirectorsduringthereportperiod
(1)Thesituationoftheboardofdirectors’meetingsduringthisreportingperiod
Thesessionofmeetings
| Thesessionofmeetings | Holdingdate | Disclosuredate | Meetingresolution |
| TheEighthSessionBoardofDirectors11thMeeting | 2022.04.25 | 2022.04.27 | Themeetingdeliberatedandapproved2021AnnualBoardofDirectors’WorkReport,2021AnnualGeneralManager’sWorkReport,2021AnnualReport,DraftProposalon2021AnnualProfitDistribution,Proposalon2021AnnualPerformanceAssessmentResultoftheCompany’sSeniorExecutives,2021AnnualSelfAssessmentReportonInternalControl,2021AnnualSocialResponsibilityReport,ProposalonRelevantIssuesofConvening2021AnnualShareholders’Meeting,ProposalonReelectionofBoardofDirectors,ProposalonAppointingIndependentDirectors,ProposalonAppointmentofCertifiedPublicAccountingFirm,Proposalon2022AnnualCapitalExpenditurePlan,Proposalon2022AnnualRoutineRelatedTransaction,Proposalon2022AnnualFinancialBudget,ProposalonChangingLicenseUseModeof‘Changyu’TrademarksandProposalonLiquidationofJointVentureCompanyYantaiSantaiRealEstateDevelopmentCo.,Ltd.. |
| TheFirstInterimBoardofDirectorsMeetingin2022 | 2022.04.28 | - | Themeetingdeliberatedandapproved2022FirstQuarterReport. |
| TheNinthSessionBoardofDirectors1stMeeting | 2022.06.09 | 2022.06.10 | ThemeetingdeliberatedandapprovedProposalonElectingChairmanoftheCompany,ProposalonElectingAuditingCommitteeMembers,ProposalonElectingEmolumentCommitteeMembers,ProposalonAppointingGeneralManagerandOtherSeniorManagementand2022-2024PerformanceEvaluationandRemunerationIncentiveMeasuresforSeniorManagement. |
| TheNinthSessionBoardofDirectors2ndMeeting | 2022.08.24 | 2022.08.26 | Themeetingdeliberatedandapproved2022Semi-AnnualReportandProposalon2022Semi-AnnualProfitDistribution. |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
TheNinthSessionBoardofDirectors3
rdMeeting
| TheNinthSessionBoardofDirectors3rdMeeting | 2022.10.26 | - | Themeetingdeliberatedandapproved2022ThirdQuarterReport. |
(2)Attendanceofdirectorsfortheboardofdirectors’andtheshareholders’meetings
| Attendanceofdirectorsfortheboardofdirectors | |||||||
| Name | Requiredattendancetime | Personalattendance | Communicationattendance | Authorizedattendance | Absence | Whetherornottoattendthemeetingspersonallyforsuccessivetwice | Attendancetimefortheshareholders’meeting |
| ZHOUHongjiang | 5 | 2 | 3 | 0 | 0 | No | 1 |
| LENGBin | 2 | 1 | 1 | 0 | 0 | No | 0 |
| SUNJian | 5 | 2 | 3 | 0 | 0 | No | 1 |
| LIJiming | 5 | 2 | 3 | 0 | 0 | No | 1 |
| JIANGJianxun | 3 | 1 | 2 | 0 | 0 | No | 1 |
| CHENDianxin | 5 | 2 | 3 | 0 | 0 | No | 0 |
| AldinoMarzorati | 5 | 1 | 3 | 1 | 0 | No | 0 |
| StefanoBattioni | 5 | 2 | 3 | 0 | 0 | No | 0 |
| EnricoSivieri | 5 | 1 | 3 | 1 | 0 | No | 0 |
| CHIANGYun | 5 | 2 | 3 | 0 | 0 | No | 0 |
| LUOFei | 2 | 1 | 1 | 0 | 0 | No | 0 |
| DUANChangqing | 5 | 2 | 3 | 0 | 0 | No | 0 |
| LIUHuirong | 5 | 2 | 3 | 0 | 0 | No | 0 |
| LIUQinglin | 5 | 2 | 3 | 0 | 0 | No | 0 |
| YURenzhu | 5 | 2 | 3 | 0 | 0 | No | 0 |
| WANGZhuquan | 3 | 1 | 2 | 0 | 0 | No | 0 |
ExplanationforfailedtopersonallyattendtheBoardofDirectors’meetingsforsuccessivetwotimes
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
Duringthereportperiod,therewerenodirectorswhodidnotattendtheBoardofDirectors’meetingsinpersonfortwoconsecutivetimes.
(3)AnyobjectionsfortheCompany’sprojectsfromthedirectorsWhetherornotthedirectorsraisedanyobjectionfortheCompany’sprojects
□Yes?NoDuringthereportperiod,thedirectorsdidnotraiseanyobjectionsfortheCompany’sprojects.
(4)Otherexplanationsondirectors’performanceWhetherornotthedirectors’propositionsareacceptedbytheCompany?Yes□NoExplanationonacceptanceorrefusaloftheindependentdirectors’propositionstotheCompanyThefollowingrecommendationsofdirectorstotheCompanywereadopted:
①Increasethedegreeofbusinessdevelopmentofonlinebusiness(i.e.e-commerce)whenofflinemarketingactivitiesweredifficulttocarryout.②FurtherstrengthenandimprovethedisclosureoftheCompany’ssocialresponsibilityinformation.
7.PerformanceofthespecialcommitteesundertheBoardofDirectorsduringthereportperiod
Committeesname
| Committeesname | Members | Numbersofmeetingheld | Helddate | Meetingcontents | Importantcommentsandsuggestionsmade | Otherperformanceofduties | Specificcircumstancesoftheobjection(ifhave) |
| AuditingCommittee | DUANChangqing,LIUHuirong,LIUQinglin,YuRenzhu,LUOFei,CHENDianxin,LENGBin,EnricoSivieri | 1 | 2022.04.25 | Themeetingdeliberatedandapprovedthe2021AnnualReport,DraftProposalon2021AnnualProfitDistribution,ProposalonAppointingCertifiedPublicAccountantsFirm,2021AnnualSelfAssessmentReportonInternalControl, | Duringthereportingperiod,themembersoftheAuditCommitteeprovidedadviceandsuggestionsinguidingtheinternalauditwork,supervisingand | No | No |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
2022AnnualInternalAuditPlan.Allthecommitteemembersunanimouslyagreedtosubmittheaboveproposalstotheboardofdirectorsofthecompanyfordeliberation.
| 2022AnnualInternalAuditPlan.Allthecommitteemembersunanimouslyagreedtosubmittheaboveproposalstotheboardofdirectorsofthecompanyfordeliberation. | evaluatingexternalauditinstitutions,establishinganeffectiveinternalcontrolsystemandpromptingmajorbusinessrisks,andactivelysafeguardedtheinterestsofthecompanyandallshareholders. |
DUANChangqing,LIUHuirong,LIUQinglin,YuRenzhu,WANGZhuquan,CHENDianxin,JIANGJianxun,EnricoSivieri
| DUANChangqing,LIUHuirong,LIUQinglin,YuRenzhu,WANGZhuquan,CHENDianxin,JIANGJianxun,EnricoSivieri | 1 | 2022.06.09 | Themeetingdeliberatedandapprovedthe2022Semi-AnnualReportandProposalon2022Semi-AnnualProfitDistribution. | ||||
| EmolumentCommittee | DUANChangqing,LIUHuirong,LIUQinglin,YuRenzhu,LUOFei,CHIANGYun,LENGBin,EnricoSivieri | 1 | 2022.04.25 | ThemeetingdeliberatedandapprovedtheProposalon2021AnnualPerformanceAssessmentResultsoftheCompany’sSeniorExecutives. | Duringthereportingperiod,theEmolumentCommitteeputforwardrelevantsuggestionsonfurtherstrengtheningtheperformanceassessmentofseniorexecutivesandimprovingthewayofremuneration. | No | No |
8.TheworkoftheBoardofSupervisorsWhetherornottheBoardofSupervisorsfoundanyexistencerisktotheCompanyinoversightactivitiesduringthereportperiod
□Yes?NoTheBoardofSupervisorshasnoobjectionstosupervisionmattersduringthereportperiod.
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
9.StaffoftheCompany
(1)Staffnumber,specialtyconstitutionandeducationdegree
Incumbentstaffnumberofparentcompanyattheendofreportingperiod(people)
| Incumbentstaffnumberofparentcompanyattheendofreportingperiod(people) | 637 |
| Incumbentstaffnumberofmajorsubsidiarycompaniesattheendofreportingperiod(people) | 1,633 |
| Totalincumbentstaffattheendofreportingperiod(people) | 2,270 |
| Totalstaffgettingpaidincurrentperiod(people) | 2,270 |
| Retiredstaffnumberwhoseexpensesareundertakenbyparentcompanyorsubsidiarycompanies(people) | 0 |
| Specialtyconstitution | |
| Category | Numberofpeople(people) |
| Productionstaff | 705 |
| Salesstaff | 1,087 |
| Technicalstaff | 137 |
| Financialstaff | 108 |
| Administrativestaff | 233 |
| Total | 2,270 |
| Educationdegree | |
| Category | Number(People) |
| Postgraduateandabove | 92 |
| Bachelor | 867 |
| JuniorCollege | 688 |
| TechnicalsecondaryschoolorSeniorhighschool | 432 |
| Juniorhighschoolandbelow | 191 |
| Total | 2,270 |
(2)RemunerationpolicyTheCompanyhasestablishedandimprovedtheremunerationandwelfaresystem,includingsalarysystem,incentivemechanism,socialsecurityandmedicalinsuranceandsoon,toensuretheparticipationofallemployees.Inaccordancewiththelaw,theCompanypurchasessocialendowmentinsurance,medicalinsurance,occupationalinjuryinsurance,unemploymentinsuranceandmaternityinsurance,andpayshousingfundfortheemployees.Basedontheprincipleof“distributionaccordingtoworkandequalpayforequalwork”,theCompanypaysthestaff’sremunerationtimely.WiththeimprovementoftheCompany’sprofitability,theCompanysteadilyimprovesthestaff’sremunerationandwelfare,andprovidesitsemployeesthecompetitivesalaryandequalopportunityfordevelopment.
(3)Trainingplan
①SeniorandMiddle-levelManagers
1)Generaltraining
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
Participateinthetrainingfordirectorsandsupervisorsoflistedcompaniesorganizedbysecuritiesregulatoryauthorities;regularlyholdthetheoreticalstudyoftheleadershipteamandthestudyofthecentralgroup;studyPartydocumentsandcurrentpoliticalspiritseriously;strengthenhumanresourcesmanagementtraining,andpayreal-timeattentiontothepoliciesandregulationsbythenational,provincialandmunicipalgovernments
2)ProfessionaltrainingEncourageself-study;ParticipatedinEntrepreneurExchangeForumandSummitMeetingandgotodomesticsuccessfulenterpriseforvisitandstudy;encouragemiddle-leveladministrativestafftoattenduniversitycorrespondence,self-studyexamination,orotherfurthereducationforhigh-leveldegree;organizeprofessionalmanagementcadres,involvedinhumanresources,finance,safetyandqualityetc.,toattendvocationalqualificationexamination;attendspecialtrainingsuchassafety,humanresource,law,technology,facility,finance,etc.,whichareorganizedbytheCompany’sspecialmanagementdepartment.②AdministrativeStaffinProduction,TourismandAdministrativeSystemsWhoseLevelareorBelowSectionChief
1)GeneraltrainingHireprofessionallecturersoruniversityteacherstoteachtoimproveemployees’professionalability,innovationabilityandthinkingexpansionability;carryouttrainingonenterprisedevelopmenthistory,rulesandregulationsandbasicknowledgeofwine,andstrengthentrainingonhumanresourcemanagement,productionsafetyandqualityandsafety;organizeemployeestoparticipatedinoutward-boundtraining.
2)ProfessionaltrainingSelecttwobooksforindividualself-study;Encourageeligiblegeneraladministrativestafftoattenduniversitycorrespondence,self-studyexamination,MBAorotherfurthereducationformasterdegree;organizeprofessionaladministrativestaff,involvedinhumanresources,finance,safetyandqualityetc.,toattendvocationalqualificationexaminationforprofessionalcertificate;basedonpersonnelwork,attendingspecialtrainingsuchassafety,technology,finance,humanresource,legaletc.,whichareorganizedbyspecialmanagementdepartment.③Front-lineWorkersinProductionandTourismSystem
1)GeneraltrainingAttendtrainingsincludingcompanyculture,regulatoryframeworkandvariousliquorproductsknowledge,andreinforcetrainingintheaspectofhumanresourcesmanagement.
2)ProfessionaltrainingForspecialtypesofwork,organizeandparticipateinthecorrespondingjobtraining;attendspecialtrainingsuchassafety,technology,facility,comprehensivemanagementetc..④MarketingPersonnel
1)GeneraltrainingStudytrainingmaterialssuchasmarketingtextbooks,thecountry’srelevantpolicydocuments,postresponsibilitysystemandsoon
2)ProfessionaltrainingHireprofessionallecturersorinviteindustryleaderstogivelecturesonsuccessfulwinemarketingcases,wineindustrydevelopmenttrend,businessdirectionforsalesbusinessdivisionmanagerassistant-levelpersonnelandabove.
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
Thetrainingforsalesbusinessdivisionmanagementpersonnelwhoselevelareorbelowsectionchieffocusesonorganizationalstructure,departmentresponsibilities,rulesandregulations,brandpositioning,productknowledge,marketingmethod,etc..⑤NewEntryUniversityStudentsConducttrainingforenterpriseculture,rulesandregulations,safetyproduction,productquality,marketingstrategy,emolumentandevaluationsystem;carryoutoutward-boundtrainingcoursessuchasroletransition,execution,collaborationandwin-wincontentandsoon;organizetorotatetothewineproductionpositionforinternship.
(4)Laboroutsourcing?Available?Notavailable
10.TheCompany’sprofitdistributionandincreasingequitywithcapitalreserveProfitdistributionpoliciesespeciallypromulgation,implementationoradjustmentofcashdividendspoliciesduringthereportperiod?Available□NotavailableDeliberatedandpassedbythe2021AnnualShareholders’MeetingconvenedonMay27
th
,2022bytheCompany,theCompany’s2021annualprofitdistributionschemeisshownasfollows:basedontotal685,464,000shares(including453,460,800Asharesand232,003,200Bshares)uptoDecember31
st
,2021,theCompanywouldpaycashdividendtoallshareholdersregisteredontheshareregistrationday:CNY4.5（includingtax）incashpertenshares.ThistimetheCompanywouldneitherdispatchbonussharesnorincreaseequitywithcapitalreserve.Totalamountofshareshasnotchangedsincethedisclosureofthedistributionplantotheimplementationperiod.OnJuly6
th,2022,theCompanypublishedtheImplementationAnnouncementof2021AnnualEquityDistributiononChinaSecuritiesJournal,SecuritiesTimesandwww.cninfo.com.cn,determiningthattheshareregistrationdayandtheex-dividenddayofASharewasrespectivelyonJuly12
th,2022andonJuly13
th,2022;thelasttradingday,theex-dividenddayandtheshareregistrationdayofBSharewasrespectivelyonJuly12
th
,2022,onJuly13
th
,2022andonJuly15
th
,2022.ThistimethedispatchingobjectscontainallAShareshareholdersregisteredatChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenCompany(hereinafterreferredtoasCSDCShenzhenCompany)afterclosingofShenzhenStockExchangeintheafternoonofJuly12
th,2022andallBShareshareholdersregisteredatCSDCShenzhenCompanyafterclosingofShenzhenStockExchangeintheafternoonofJuly15
th
,2022(thelasttradingdayisJuly12
th
,2022).Thisdispatchinghasalreadybeencompletedinmid-July2022.Theprofitdistributionschemeimplementedthistimeisconsistentwiththeschemedeliberatedandpassedbytheshareholders’meeting.Theimplementationoftheprofitdistributionschemeforthistimeisnotmorethantwomonthsaftertheshareholders'meetingpassingit.
Specialexplanationforthecashdividendspolicy
| Specialexplanationforthecashdividendspolicy | |
| WhetheritisinaccordancewiththerequirementsoftheregulationintheArticlesofAssociationandtheresolutionofshareholders’meeting | Yes |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
Whetherthedistributionstandardandproportionisclearanddefinite
| Whetherthedistributionstandardandproportionisclearanddefinite | Yes |
| Whethertherelevantdecisionprocessandmechanismiscomplete | Yes |
| Whethertheindependentdirectorsperformtheirresponsibilitiesandplaytheroles | Yes |
| Whetherthesmallandmiddleshareholdershavethechancetoexpresstheiropinionsandappeals,aswellastheirlawfulrightandinterestisinanenoughprotection | Yes |
| Whetheritislegalandtransparentfortheconditionandprocesswhileadjustingandamendingthecashdividendspolicy | Yes |
Duringthereportperiod,theCompanyearnedprofit,theprofitoftheparentcompanythatcouldbedistributedtoshareholderswaspositivebutwithoutproposingcashdividenddistributionpreliminaryscheme.
□Available?NotavailableTheCompany’spreliminaryschemeofprofitdistributionandpreliminaryschemeofincreasingequitywithcapitalreserveforthereportperiod?Available□Notavailable
| Numberofsendingbonussharespertenshares(share) | 0 | ||||
| Numberofdividendpayoutpertenshares(CNY)(includingtax) | 4.50 | ||||
| Thecardinalnumberofthecapitalstocksforthepreliminarydistributionscheme(share) | 685,464,000 | ||||
| Cashdividenddistribution（CNY）(includingtax) | 308,458,800 | ||||
| Amountofcashdividends(eg.sharesbuy-back)（CNY）inotherways | 0 | ||||
| Totalcashdividenddistribution（CNY）(includingotherways) | 308,458,800 | ||||
| Attributableprofit（CNY） | 428,681,411 | ||||
| Theproportionofcashdividenddistributioninthetotalprofitdistribution(includingotherways) | 100 | ||||
| Cashdividenddistributionthistime | |||||
| IftheCompany’sdevelopmentisingrowthstageandmajorcapitalexpenditureisarranged,whilemakingprofitdistribution,theproportionofcashdividendsshouldtakesupnolessthan20%inthisprofitdistribution. | |||||
| Detailedexplanationforthepreliminaryschemeofprofitdistributionorincreasingequitywithcapitalreserve | |||||
| AccordingtotheauditresultfromKMPGHuazhenLLP,thenetprofitbelongingtotheparentcompany’sshareholdersintheconsolidatedstatementin2022isCNY428,681,411andthenetprofitoftheparentcompanyinfinancialstatementin2022isCNY749,757,149.AccordingtoPRCaccountingstandard,thesituationforattributableprofitsoftheconsolidationandtheparentcompanyattheendof2022asfollowing:Unit:CNY | |||||
| Consolidation | Parentcompany | ||||
| Year-endundistributedprofit | 9,049,649,211 | 9,582,860,014 | |||
| Amongwhich:Totalcomprehensiveincomein2022 | 428,681,411 | 749,757,149 | |||
| Undistributedprofitcarriedforwardfrombeginningoftheyear | 8,929,426,600 | 9,141,561,665 | |||
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
Dividendsdistributionof2021
| Dividendsdistributionof2021 | 308,458,800 | 308,458,800 |
| Legalearnedsurplusreservetobedrawn | 0 | 0 |
Accordingtoregulationof157
th
itemintheArticlesofAssociation,whichisthat“theCompanycandistributedividendseitherincashorbystock,theprofittobedistributedeachyearisnotlessthan25%ofthedistributableprofitrealizedinthesameyearandtheaccumulatedsumofprofittobedistributedincashinthelastthreeyearsisnotlessthan30%oftheyearlyaveragedistributableprofittoberealizedinthelastthreeyears”.Meanwhile,consideringtheamountonthecapitalexpenditurein2023,undertheconditionofnotinfluencingthenormalproductionandoperation,theCompanyputforwardpreliminaryschemeonprofitdistributionin2022asfollowing:
Becausetheleftamountoflegalearnedsurplusreservereaches50%ofregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewillnotbedrawn.BasedontheCompany’s685,464,000sharesattotaluptoDecember31
st
,2022,theCompanyplanstopayCNY4.5incashasdividendsforeverytenshare(includingtax)totheCompany’sallshareholders,totalinguptoCNY308,458,800.Theretainedandundistributednetprofitwillbereservedfordistributioninthenextyear.Thecashdividenddistributedtoshareholdersofdomesticlistedforeignshares(Bshare)ispaidinHKDconvertedbasedonthemiddleratebetweenCNYandHKDissuedbythePeople’sBankofChinaonthefirstworkingdayaftertheresolutiondateof2022shareholders’meeting.
11.ImplementationoftheCompany’sequityinventiveplan,employeestockownershipplanorotheremployeeincentivemeasures
□Available?NotavailableTherearenoimplementationoftheCompany’sequityinventiveplan,employeestockownershipplanandotheremployeeincentivemeasuresduringthereportperiod.
12.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod
(1)ConstructionandimplementationofinternalcontrolFortheconstructionandimplementationofthecompany’sinternalcontrol,pleaserefertothe2022AnnualSelf-AssessmentReportonInternalControldisclosedinSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnonApril13
th
,2023.
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
(2)Specificsituationsforsignificantdefectsoftheinternalcontrolfoundduringthereportperiod
□Yes?No
13.Thecompany’smanagementandcontroloversubsidiariesduringthereportingperiod
Companyname
| Companyname | Integrationplan | Integrationprogress | Problemsencounteredinintegration | Actionstaken | Resolveprogress | Follow-upresolutionplan |
| None | None | None | None | None | None | None |
14.Internalcontrolself-assessmentreportorinternalcontrolauditreport
（1）Internalcontrolself-assessmentreport
| Disclosuredateforfulltextoftheinternalcontrolself-assessmentreport | 2023.04.13 | ||
| Disclosureindexforfulltextoftheinternalcontrolself-assessmentreport | 2022AnnualSelf-AssessmentReportonInternalControldisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril13th,2023 | ||
| PercentageoftotalunitassetsincludedinscopeoftheassessmentaccountingfortheCompany’stotalassetsofconsolidatedfinancialstatements | 84.93% | ||
| PercentageofunitoperatingincomeincludedinscopeoftheassessmentaccountingfortheCompany’soperatingincomeofconsolidatedfinancialstatements | 92.41% | ||
| StandardsofDefectIdentification | |||
| Category | Financialreport | Non-financialreport | |
| Qualitativecriteria | Significantdefects:onedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport.Forexample:?Company’sDirectors,SupervisorsandSeniorManagementhavefraudulentpractices;?TheCompanymakescorrectionsforthepublishedfinancialreport;?Theauditofexternalintermediaryagentfindssignificantmisstatementexistinginthecurrentfinancialreport,buttheCompanydoesnot | Significantdefects:Anysituationslistedbelowappears,itcanberegardedassignificantdefects.?Operation:Unabletoachievealloperationtargetorkeybusinessindex,widelyoutofbudgetinvariousaspects.?Safetyaccidenteffects:Causeonepersonandabovedeath,ormorethan3personseriousinjuries.?Majornegativeeffects:Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescopeintheinternationalandnational | |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
realizeitduringtheoperationprocess;?Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescope;?TheCompany’sauditcommitteeandinternalauditdepartmentmakesaninefficientsupervisionforinternalcontrol;?Othersituationsmaybecausesignificantmisdirectionwhichguidesthereportuserstomaketherightjudgment.Majordefects：Thedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport,althoughthemisstatementsneitherachievesnorexceedstheimportancelevelbutstillarisingtheattentionofBoardofDirectorsandmanagementteam.?Failuretoselectandapplyaccountingregulationsinaccordancewithgenerallyacceptedaccountingprinciples;?Failuretoestablishtheanti-fraudproceduresandcontrolmeasures;?Failuretosetupcorrespondingcontrolmechanismortocarryoutandtakecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects.
| realizeitduringtheoperationprocess;?Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescope;?TheCompany’sauditcommitteeandinternalauditdepartmentmakesaninefficientsupervisionforinternalcontrol;?Othersituationsmaybecausesignificantmisdirectionwhichguidesthereportuserstomaketherightjudgment.Majordefects：Thedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport,althoughthemisstatementsneitherachievesnorexceedstheimportancelevelbutstillarisingtheattentionofBoardofDirectorsandmanagementteam.?Failuretoselectandapplyaccountingregulationsinaccordancewithgenerallyacceptedaccountingprinciples;?Failuretoestablishtheanti-fraudproceduresandcontrolmeasures;?Failuretosetupcorrespondingcontrolmechanismortocarryoutandtakecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects. | mainstreammedia.?Environmenteffects:Createirreparabledamagestoenvironment,andcausemassivepubliccomplains.Majordefects:Anysituationslistedbelowappears,itcanberegardedasmajordefects.?Operation:Unabletoachievepartlyoperationtarget,abigmarginoutofbudgetinvariousaspects.?Safetyaccidenteffects:Withoutreachingthenumberofpersonlossorseriousinjuryofsignificantdefects.?Majornegativeeffects:Negativenewsappearsinthemediawithinfluencingawidescopeintheprovincialmainstreammedia.?Environmenteffects:Causeheavyenvironmentdamagesandmassivepubliccomplains,oughttocarryoutthesignificantremedialmeasures.Generaldefects:Anysituationslistedbelowappears,itcanberegardedasgeneraldefects.?Operation:Othereffectsunabletoconstitutethesignificantdefectsormajordefects.?Safetyaccidenteffects:Personalinjurylessthanthequantitativestandardsofmajordefects.?Majornegativeeffects:Otherdefectsunabletoconstitutethesignificantdefectsormajordefects.?Environmenteffects:Otherenvironmenteffectsunabletoconstitutethesignificantdefectsormajordefects. | |
| Quantitativecriterion | Fortotalassets/Owner’sequity:?Significantdefects:misstatements≧1%,or?Majordefects:0.5%≦misstatements<1%,or?Generaldefects:misstatements<0.5%Foroperationrevenue:?significantdefects:misstatements≧1%,or?Majordefects:0.5%≦misstatements<1%,or?Generaldefects:misstatements<0.5%Forpretaxprofit:?Significantdefects:misstatements≧5%,or | Fordirectpropertyloss:?Significantdefects:MorethanCNY10million?Majordefects:CNY1million-CNY10million(includingCNY1million)?Generaldefects:LessthanCNY1million |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
?Majordefects:2%≦misstatements<5%,or?Generaldefects:misstatements<2%
| ?Majordefects:2%≦misstatements<5%,or?Generaldefects:misstatements<2% | ||
| Numberofsignificantdefectinfinancialreport | 0 | |
| Numberofsignificantdefectinnon-financialreport | 0 | |
| Numberofmajordefectinfinancialreport | 0 | |
| Numberofmajordefectinnon-financialreport | 0 | |
(2)Internalcontrolauditreport?Available□Notavailable
| Auditopinionsoftheinternalcontrolauditreport | |
| Webelievethat,thecompanymaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialaspectsinaccordancewiththeBasicNormsforCorporateInternalControlandrelatedregulationsonDecember31st,2022. | |
| Disclosureoftheinternalcontrolauditreport | Disclosure |
| Disclosuredateforthefulltextoftheinternalcontrolauditreport | 2023.04.13 |
| Disclosureindexforthefulltextoftheinternalcontrolauditreport | 2022AnnualSelf-AssessmentReportonInternalControldisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril13th,2023. |
| Opiniontypeoftheinternalcontrolauditreport | Standardwithoutreservedopinion |
| Whetherornotexistssignificantdefectsinnon-financialreports | No |
Whetherornottheaccountingfirmissuednon-standardopinionsfortheauditreportofinternalcontrol
□Yes?NoWhethertheauditreportofinternalcontrolissuedbytheaccountingfirmisinconsistencywiththeself-assessmentreportoftheboardofdirectors?Yes?No
15.Self-inspectionandrectificationofproblemsinthespecialactionongovernanceoflistedcompanyNo.
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
V.EnvironmentalandSocialResponsibility
1.MajorEnvironmentalissuesWhetherthelistedcompanyanditssubsidiariesbelongtomajorpolluterspublishedbytheenvironmentalprotectiondepartment?Yes?NoPoliciesandindustrystandardsrelatedtoenvironmentalprotectionTheEnvironmentalProtectionLawofPeople’sRepublicofChina,TheWaterPollution’sPreventionandControlLawofPeople’sRepublicofChina,TheAirPollution’sPreventionandControlLawofPeople’sRepublicofChina,TheEnvironmentalNoisePollution’sPreventionandControlLawofPeople’sRepublicofChina,TheEnvironmentalSolidWastePollution’sPreventionandControlLawofPeople’sRepublicofChinaandTheEnvironmentalProtectionRegulationsofLiaoningProvince;thenational’sGeneralPrinciplesofHazardousWasteIdentificationStandards,SurfaceWaterEnvironmentalQualityStandards,GroundwaterEnvironmentalQualityStandards,EnvironmentalAirQualityStandards,AcousticEnvironmentalQualityStandards,EmissionStandardforEnvironmentalNoiseattheBoundaryofIndustrialEnterprises,ComprehensiveDischargeStandardforBoilerAirPollutants,TheLimitingValueofOccupationalExposuretoHazardousFactorsintheWorkplace(ChemicalHazardousFactors)andComprehensiveWastewaterDischargeStandardofLiaoningProvince.AdministrativepermitforenvironmentalprotectionIthasbeenapprovedintheHuanhuanjianzi(2016)No.24issuedbytheEnvironmentalProtectionBureauofHuanrenManchuAutonomousCounty.Industrialemissionstandardsandspecificinformationonthedischargeofpollutantsinvolvedinproductionandbusinessactivities
Nameofcompanyorsubsidiary
| Nameofcompanyorsubsidiary | Nameofmajorpollutantsandparticularpollutants | Nameofmajorpollutantsandcharacteristicpollutants | Modeofdischarge | Quantityofdischargeoutlet | Distributionsituationofdischargeoutlet | Dischargeconcentration | Implementedpollutiondischargestandard | Totalvolumeofdischarge | Totalapprovedvolumeofdischarge | Conditionofexcessivedischarge |
| LiaoningChangyuIcewineChateauCo.,Ltd. | Organizedexhaustgas,inorganizedexhaustgas,wasterwater, | exhaustgas,wasterwater,noise | Dischargeoutletofboilerchimneyanddischargeoutletoffactorywaste | 2 | ConfirmedinlinewithnationalstandardGraphicalSignsforEnvironmental | Meetingthenationalstandards | EmissionStandardforAirPollutantsofBoiler(GB13271-2014),EmissionStandardforOdorPollutants(GB14554-93),4ainClass2ofEmissionStandardforEnvironmentalNoiseattheBoundaryofIndustrialEnterprises | 35m3/d | 120m3/d | No |
YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport
noise
| noise | water | Protection(GB15562.1-1995)(GB15562.2-1995) | (GB12348-2008),ComprehensiveWastewaterDischargeStandardofLiaoningProvince(DB21/1627-2008) |
TreatmentofpollutantsTheexhaustgas,SO
andNOXproducedbythiscompany'sboileraredischargedthroughceramictubedustremoversandbagdustremovers.Awastewatertreatmentstationhasbeenconstructed.Thewastewatertreatmentprocessadoptsthetreatmentprocessofhydrolysisaerobiont.Productionwastewateranddomesticsewagearetreatedbythein-plantwastewatertreatmentstationandthendischargedintothewastewatertreatmentplantinBeidianzixiangTown.EmergencyplanforemergentenvironmentalincidentTheCompanyhasformulatedacomprehensiveemergencyplanforemergentenvironmentalincident.Environmentalself-monitoringprogramTheCompanyhasformulatedacompleteenvironmentalself-monitoringprogram.InvestmentinenvironmentalgovernanceandprotectionandpaymentofenvironmentalprotectiontaxTheCompanyhasmadesufficientinvestmentinenvironmentalprotection,doneagoodjobinenvironmentalgovernanceandprotectionandpaidenvironmentalprotectiontaxinfullandtimelyaccordingtolaw.Measurestakentoreducecarbonemissionsandtheireffectsduringthereportingperiod?Available?NotavailableAdministrativepenaltiesforenvironmentalissuesduringthereportingperiod
| Companyorsubsidiaryname | Reasonforpenalty | Violation | Penaltyresult | Theimpactontheproductionandoperationoflistedcompanies | Thecompany’srectificationmeasures |
| None | None | None | None | None | None |
OtherenvironmentalinformationthatshouldbemadepublicNo
OtherrelatedenvironmentalinformationNo
2.SocialresponsibilityperformancePleasereferto2022AnnualSocialResponsibilityReportdisclosedonSecuritiesTimes,ChinaSecuritiesNewspaperandwww.cninfo.com.cnbytheCompany.
3.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationTheCompanyhelpedtheoldrevolutionarybaseareasgetridofpovertyandgetrichbypurchasing1898boxesofmilletand3796boxesofapplesproducedbyHuangchengyangVillage,whichworthCNY611,200,andgiventhemtoCompany’semployees.Itnotonlyincreasethewelfareofemployees,butalsoexpandsthepopularityoftheagriculturalproductsofthevillageandincreasestheincomeofpeopleintheoldrevolutionarybaseareas.
VI.Majorissues
1.Implementationofcommitments
(1)CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirersandtheCompanyandotherrelatedcommitmentpartieshaveimplementedduringthereportperiodandhavenotimplementeduptotheendofthereportperiod?Available□Notavailable
Commitments
| Commitments | Commitmentparty | Commitmenttype | Commitmentcontent | Commitmenttime | Commitmentperiod | Implementation |
| Commitmentsattheinitialpublicofferingorrefinancing | YantaiChangyuGroupCo.,Ltd. | Solvehorizontalcompetition | Non-horizontalcompetition | 1997.05.18 | Forever | Hasbeenperforming |
| YantaiChangyuGroupCo.,Ltd. | Cleartheuseoftrademarkroyalty | AccordingtoTrademarkLicenseContract,thetrademarkroyaltyofChangyuandothertrademarkspaidbytheCompanytoYantaiChangyuGroupCo.,Ltd.everyyearismainlyusedforadvertisingChangyuandothertrademarksandthiscontractproductsbyYantaiChangyuGroupCo.,Ltd. | 1997.05.18 | 1997.05.18-2019.04.04 | AccordingtoTrademarkLicenseContract,thetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksincludingChangyuandcontractproducts.Except2013to2017duringwhichthecommitmentwasnotstrictlyperformed,YantaiChangyuGroupCo.,Ltd.hasbeenperformingitscommitment. | |
| Othercommitments | YantaiChangyuGroupCo.,Ltd. | Compensatingunredeemedcommitment | TheCNY231,768,615thatwasnotusedforpublicityoftrademarksandcontractproductsaspromisedwillbeoffsetbythefour-yeartrademarkusefeefrom2019to2022.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence. | 2019.04.04 | 2019.04.04-2023.12.31 | Hasbeenperforming |
| Commitmentundertimelyimplementationornot | Yes | |||||
Whetherornottohavespecificreasonsoftheunimplementedcommitmentandnextsteps
| Whetherornottohavespecificreasonsoftheunimplementedcommitmentandnextsteps | AccordingtotheTrademarkLicenseContract(hereafterreferredtoas“theContract”),ChangyuGrouppromisesthatthetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksandcontractproducts.Butabove-mentioned‘mainly’isnotaspecificnumber,whichiseasytocausedivergenceduetodifferentunderstandingandleadstoproblemappearanceduringtheimplementationprocess.From2013to2017,ChangyuGroupcollectedatotalofCNY420,883,902trademarkusefee,ofwhich51%wasusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY214,650,790.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY50,025,181,withabalanceofCNY164,625,609.In2018and2019,thetrademarkusefeecollectedof2017and2018isCNY155,623,907,ofwhich51%isusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY79,368,193.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY12,225,187,withabalanceofCNY67,143,006.From2013to2018,theaccumulatedbalanceofChangyuGroupusingtopublicizetrademarksincludingChangyuandcontractproductsisCNY231,768,615.ChangyuGrouppromisesthatthefour-yeartrademarkusefeefrom2019to2022willbeusedforoffset.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence.IfChangyuGroupisnotabletoimplementtheabove-mentionedcommitmentowingtovariousreasons,theCompanywilltimelysuperviseandurgeChangyuGrouptofulfillitscommitmentandrequestChangyuGrouptoraisefundsthroughbankloaning,assetssalesandequitysalesetc.inordertoimplementthecommitment.Fordetailedinformation,pleaserefertoAnnouncementonCommitmentIssuesofYantaiChangyuGroupCo.,Ltd.disclosedonApril4th,2019. |
(2)TheCompanyshouldmakeastatementontheachievedoriginalprofitforecastofassetsorprojectsanditsreasonifthereisprofitforecastofCompany’sassetsorprojectsandthereportperiodisstillintheprofitforecastperiod□Available?Notavailable
2.Non-operatingcapitaloccupyingoflistedcompanybycontrollingshareholderanditsrelatedparties
□Available?NotavailableTherearenonon-operatingcapitalsoccupyingoflistedcompanybycontrollingshareholderanditsrelatedpartiesduringthereportperiod.
3.Illegalexternalguarantee□Available?NotavailableThereisnoillegalguaranteesituationduringthereportperiod.
4.ExplanationofboardofdirectorsonthelatestNon-standardAuditReport□Available?Notavailable
5.ExplanationofNon-standardAuditReportgivenbyaccountingfirminthereportperiodfromboardofdirectors,boardofsupervisorsandindependentdirectors(ifhave)
□Available?Notavailable
6.Comparedwiththelastyear’sfinancialreport,explanationofthechangesinaccountingpolicy,accountingestimationorcorrectionofsignificantaccountingerrors?Available?NotavailableThereisnochangesofaccountingpolicy,accountingestimationorcorrectionofsignificantaccountingerrorsduringthereportperiod.
7.Comparedwiththelastyear’sfinancialreport,explanationforthechangesoftheconsolidatedstatementsscope?Available?NotavailableDuringthereportingperiod,thenewlyestablishedYantaiKelidunCateringCo.,Ltd.wasincludedinthescopeofconsolidatedstatement;Forotherdetailsofthethechanges,pleasereferto“1.Interestsinsubsidiaries”inNote“VIInterestsinotherentities”tothefinancialreportofthisreport.
8.TheappointmentanddismissalofcertifiedpublicaccountantsCurrentlyappointedaccountingfirm
Domesticaccountingfirmname
| Domesticaccountingfirmname | KPMGHuaZhenLLP |
| Remunerationfordomesticaccountingfirm(CNY‘0000) | 205 |
| Consecutiveperiodfortheauditserviceofdomesticaccountingfirm | 4 |
| Nameofcertifiedpublicaccountantfortheauditserviceofdomesticaccountingfirm | Ms.TingWang,Ms.HuiJiang |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofdomesticaccountingfirm | 4 |
| Overseasaccountingfirmname(ifhave) | — |
| Remunerationforoverseasaccountingfirm(CNY‘0000)(ifhave) | 0 |
| Consecutiveperiodfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Nameofcertifiedpublicaccountantfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofoverseasaccountingfirm(ifhave) | — |
Whetherornottoemployanewaccountingfirmduringthereportperiod?Yes?NoToemployinternalcontrolauditaccountingfirms,financialadviserorsponsor.?Available?NotavailableThisyear,KPMGHuazhenLLPwashiredastheinternalcontrolauditinstitution.Theauditfeewasnotdeterminedseparately,butwasCNY2.05milliontogetherwiththefinancialreportauditfee.
9.Faceofsuspensionandterminationoflistingafterthedisclosureofannualreport?Available?Notavailable
10.Bankruptcyreorganization
□Available?NotavailableThereisnobankruptcyreorganizationduringthereportperiod.
11.Materiallitigationandarbitration
□Available?Notavailable
Therearenomateriallitigationandarbitrationduringthereportperiod.
12.Penaltyandrectification?Available?NotavailableTherearenopenaltyandrectificationduringthereportperiod
13.CreditoftheCompany,holdingshareholdersandactualcontrollers
□Available?Notavailable
14.Significantrelatedtransactions
(1)Relatedtransactionsinrelationtodailyoperations?Available□Notavailable
Related
party
| Relatedparty | Relationship | Type | Content | Pricingprinciple | Price | Amount(CNY‘0000) | Proportionaccountingforamountofsimilartransactions | Approvedtransactionquota(CNY‘0000) | Whetherexceedapprovedtransactionquota | Clearingform | Availablemarketpriceofsimilartransactions | Disclosuredate | Disclosureindex |
| YantaiShenmaPackagingCo.,Ltd. | Controlledbythesameparentcompany | Purchaseandcommissionprocessing | Purchaseandcommissionprocessingpackagingmaterials | Agreementpricing | Determinedbyagreement | 8,219 | 16.43% | 9,000 | No | Cash | No | 2022.04.27 | ExpectedAnnouncementon2022AnnualRoutineRelatedTransactiondisclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFOin2022 |
| Total | -- | -- | 8,219 | -- | 9,000 | -- | -- | -- | -- | -- | |||
| Detailsofthereturnoflargesales | No | ||||||||||||
(2)Relatedtransactionsinrelationtoacquisitionandsalesofassetsorequity?Available?NotavailableThereisnorelatedtransactionsinrelationtoacquisitionorsalesofassetsorequityduringthereportperiod.
(3)Relatedtransactionsinrelationtocommonforeigninvestment?Available?NotavailableThereisnorelatedtransactionsinrelationtocommonforeigninvestmentduringthereportperiod.
(4)Relatedcurrentcreditanddebttransactions?Available□NotavailableWhetherornotexistingnon-operatingrelatedcreditanddebttransactions
□Yes?NoThereisnonon-operatingrelatedcreditanddebttransactionsduringthereportperiod.
(5)Transactionswithrelatedfinancialcompanies?Available?NotavailableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentheCompanyandrelatedfinancialcompaniesandrelatedparties.
(6)TransactionsbetweentherelatedpartiesandfinancialcompaniescontrolledbytheCompany?Available?NotavailableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentherelatedpartiesandthefinancialcompaniescontrolledbytheCompany.
Actualperformanceoftheestimatedtotalamountfordailyoperationsrelatedtransactionsbycategorythatwilloccurduringthisperiod.
| Actualperformanceoftheestimatedtotalamountfordailyoperationsrelatedtransactionsbycategorythatwilloccurduringthisperiod. | No |
| Reasonforthedeferencebetweentransactionpriceandmarketreferenceprice(ifavailable) | Notavailable |
(7)Othermajorrelatedtransactions?Available□NotavailableForothermajorrelatedtransactions,pleaserefertotheSectionIX“RelatedPartiesandRelatedTransaction”oftheFinancialReportofthisreport.Disclosurewebsiteofinterimreportformajorrelatedtransaction
Nameofinterimannouncement
| Nameofinterimannouncement | Disclosuredateofinterimannouncement | Nameofdisclosurewebsiteforinterimannouncement |
| None | - | None |
15.Majorandimportantcontractsandexecutionresults
(1)Trusteeship,contractandleaseholdissues?Trusteeshipsituation?Available?NotavailableThereisnotrusteeshipsituationduringthereportperiod?Contractsituation?Available?NotavailableThereisnocontractsituationduringthereportperiod.?Leaseholdsituation?Available?NotavailableExplanationofleaseholdsituationForthemajorleaseholdsituationduringthereportingperiod,pleaserefertothe“(4)RelatedLeases”of“4.RelatedTransaction”in“IX.RelatedPartiesandRelatedTransaction”inthefinancialreportofthisreport.TheprojectbroughttheprofitandlosstotheCompanythatreachedmorethan10%ofthetotalprofitoftheCompanyduringthereportingperiod?Available?NotavailableThereisnoleaseprojectbroughttheprofitandlosstotheCompanythatreachedmorethan10%ofthetotalprofitoftheCompanyduringthereportingperiod.
(2)Majorguarantee?Available□Notavailable
Unit:CNY’0000
ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries）
| ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries） | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | Collateral(ifhave) | Counterguaranteesituation(ifhave) | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiEconomicandTechnologicalDevelopmentZoneManagementCouncil. | 2016.12.22 | 34,160 | 2016.12.21 | 34,160 | Jointliabilityassurance;Mortgage | - | - | 10years | No | No |
| Totaloftheexternalguaranteequotaapprovedduringthereportperiod(A1) | 0 | Totaloftheactualexternalguaranteeamountduringthereportperiod(A2) | 0 | |||||||
| Totaloftheexternalguaranteequotaapprovedbytheendofthereportperiod(A3) | 34,160 | Balanceoftheactualexternalguaranteebytheendofthereportperiod(A4) | 34,160 | |||||||
| GuaranteesituationsbetweentheCompanyandsubsidiaries | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence | Actualguaranteeamount | Guaranteetype | Collateral | Counterguaranteesituation | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiChangyuWineResearchandDevelopmentCompanyLimited | 2016.12.22 | 72,176 | 2016.12.21 | 72,176 | Jointliabilityassurance;Mortgage | - | - | 10years | No | Yes |
| KilikanoonEstatePtyLtd | 2018.12.05 | 8,528 | 2018.12.13 | 7,858 | Jointliabilityassurance | - | - | 5year | No | Yes |
Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(B1)
| Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(B1) | 0 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(B2) | 0 | |||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesbytheendofthereportperiod(B3) | 80,704 | Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(B4) | 80,034 | |||||||
| Guaranteesituationsbetweensubsidiaries | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence | Actualguaranteeamount | Guaranteetype | Collateral | Counterguaranteesituation | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| TotalguaranteeamountoftheCompany（Totalofabovethreemajoritems） | ||||||||||
| Totaloftheapprovedguaranteequotaduringthereportperiod（A1+B1+C1） | 0 | Totaloftheactualguaranteeamountduringthereportperiod（A2+B2+C2） | 0 | |||||||
| Totaloftheapprovedguaranteequotabytheendofthereportperiod（A3+B3+C3） | 114,864 | Balanceoftheactualguaranteebytheendofthereportperiod（A4+B4+C4） | 114,194 | |||||||
| Theproportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’snetasset | 10.79% | |||||||||
| Among: | ||||||||||
| Theamountofguaranteeforshareholders,actualcontrollersandtheirrelatedparties（D） | 0 | |||||||||
| Theamountofdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratioismorethan70%directlyorindirectly（E） | 0 | |||||||||
| Totalamountofguaranteeofthepartthatexceeds50%ofnetassets（F） | 0 | |||||||||
| Totalamountoftheabove-mentionedthreeitems（D+E+F） | 0 | |||||||||
| Explanationforundueguaranteesthathavehappenedwarrantyliabilityormaytakejointpaybackliabilitiesduringthereportperiod(ifhave) | No | |||||||||
| Explanationforviolatingdueprocesstoprovideexternalguarantee(ifhave) | No | |||||||||
DescriptionofthespecificsituationofusingcompoundguaranteeNo.
(3)Entrustingotherstomanagecashassets?Financialmanagemententrustment
□Available?NotavailableThereisnofinancialmanagemententrustmentduringthereportperiod.?Loanentrustment
□Available?NotavailableThereisnoloanentrustmentduringthereportperiod.
(4)Otherimportantcontracts
□Available?NotavailableTherearenootherimportantcontractsduringthereportperiod.
16.OtherMajorissues
□Available?NotavailableTherearenoothermajorissuesneedtobeexplainedduringthereportperiod.
17.MajorissuesofCompany’ssubsidiaries
□Available?Notavailable
VII.ChangesinSharesandtheShareholders’Situation
1.Changesinshares
(1)Changesinshares
Unit:share
Amountbeforethischange
| Amountbeforethischange | Change(+,-) | Amountafterthischange | |||||||
| Amount | Percentage% | Allotnewshare | Distributebonusshare | Transferothercapitaltosharecapital | Others | Subtotal | Amount | Percentage% | |
| I.Shareswithtradinglimitedcondition | |||||||||
| 1.State-ownedholdings | |||||||||
| 2.State-ownedlegalpersonholdings | |||||||||
| 3.Otherdomesticholdings | |||||||||
| Amongwhich:domesticlegalperson | |||||||||
| domesticnaturalperson | |||||||||
| 4.Foreign-ownedholdings | |||||||||
| Amongwhich:foreignlegalperson | |||||||||
| foreignnaturalperson | |||||||||
| II.Shareswithouttradinglimitedcondition | 685,464,000 | 100% | 685,464,000 | 100% | |||||
| 1.Ashares | 453,460,800 | 66.15% | 453,460,800 | 66.15% | |||||
2.Bshares
| 2.Bshares | 232,003,200 | 33.85% | 232,003,200 | 33.85% | |
| 3.Oversealistedforeignshares | |||||
| 4.Others | |||||
| III.Totalshares | 685,464,000 | 100% | 685,464,000 | 100% |
Causeofsharechange
□Available?NotavailableApprovalofsharechange□Available?NotavailableTransferownershipofchangedshares
□Available?NotavailableTheinfluenceofsharechangeonthefinancialindicatorssuchasbasicearningspershare,dilutedearningspershareofthelatestyearandthelatestperiod,netassetpersharebelongingtotheCompany’scommonshareholders,etc..□Available?NotavailableOthercontentstheCompanythinksnecessaryorsecuritiesregulatorydepartmentsasktomakepublic.
□Available?Notavailable
(2)Changesinrestrictedshares□Available?Notavailable
2.Securitiesissuanceandlistingsituation
(1)Securitiesissuance(excludepreferredshare)duringreportperiod
□Available?Notavailable
(2)ExplanationofchangeinCompany’stotalsharesandshareholdingstructureandchangeinCompany’sassetsandliabilitystructure
□Available?Notavailable
(3)Currentinternalemployeeshares□Available?Notavailable
3.Situationforshareholdersandtheactualcontrollers
(1)ThenumberofshareholdersoftheCompanyandtheshareholdings
Unit：share
Totalshareholdersinthereportperiod
| Totalshareholdersinthereportperiod | 44,371 | Totalnumberofshareholdersbytheendoflastmonthbeforethedisclosuredayoftheannualreport | 42,682 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendofreportperiod(ifhave)(seenote8) | 0 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendoflastmonthbeforethedisclosuredayoftheannualreport(ifhave)(seenote8) | 0 | ||||||||
| Shareholdersholdingmorethan5%orthetop10shareholdersholdingsituation | |||||||||||||||
| NameofShareholders | Characterofshareholders | Percentage(%) | Shareshelduntiltheendofthereportperiod | Changesduringthereportperiod | Numberofrestrictedshares | Numberofunrestrictedshares | Pledged/markedorfrozen | ||||||||
| Sharestatus | Amount | ||||||||||||||
| YANTAICHANGYUGROUPCO.,LTD. | Domesticnon-statelegalperson | 50.40% | 345,471,556 | -2,300 | 0 | 345,471,556 | 0 | ||||||||
| GAOLINGFUND,L.P. | Foreignlegalperson | 3.08% | 21,090,219 | 0 | 0 | 21,090,219 | 0 | ||||||||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | Foreignlegalperson | 1.12% | 7,683,016 | -1,457,200 | 0 | 7,683,016 | 0 | ||||||||
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 1.06% | 7,293,952 | -120,000 | 0 | 7,293,952 | 0 | ||||||||
| #JIANGFengdi | Domesticnaturalperson | 0.77% | 5,295,000 | 837,800 | 0 | 5,295,000 | 0 | ||||||||
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 0.73% | 4,998,831 | -13,040 | 0 | 4,998,831 | 0 | ||||||||
HaitongInternationalSecuritiesCompanyLimited-AccountClient
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | Foreignlegalperson | 0.73% | 4,986,502 | -25,369 | 0 | 4,986,502 | 0 | ||||
| HONGKONGSECURITIESCLEARINGCOMPANYLIMITED | Foreignlegalperson | 0.64% | 4,420,086 | 1,341,261 | 0 | 4,420,086 | 0 | ||||
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | Foreignlegalperson | 0.59% | 4,026,863 | -144,000 | 0 | 4,026,863 | 0 | ||||
| FIDELITYCHINASPECIALSITUATIONSPLC | Foreignlegalperson | 0.55% | 3,779,202 | 0 | 0 | 3,779,202 | 0 | ||||
| Strategicinvestorsorlegalresultoftheplacementofnewsharestobecomeatop10shareholders | No | ||||||||||
| Theexplanationfortheassociatedrelationshipandaccordantaction | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,whiletherelationshipamongtheothershareholdersisunknown. | ||||||||||
| Explanationoftheabove-mentionedshareholders’entrustment/fiduciaryvotingrightsandwaiverofthevotingrights | No | ||||||||||
| Specialexplanationfortheexistenceofaspecialrepurchaseaccountamongthetop10shareholders | No | ||||||||||
| Thetop10shareholderswithshareswithouttradinglimitedcondition | |||||||||||
| NameofShareholders | Numberofshareswithouttradinglimitedconditionhelduntiltheendoftheyear | Typeofshare | |||||||||
| Typeofshare | Amount | ||||||||||
| YANTAICHANGYUGROUPCO.,LTD. | 345,471,556 | A | 345,471,556 | ||||||||
| GAOLINGFUND,L.P. | 21,090,219 | B | 21,090,219 | ||||||||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | 7,683,016 | B | 7,683,016 | ||||||||
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | 7,293,952 | B | 7,293,952 | ||||||||
| #JIANGFengdi | 5,295,000 | A | 5,295,000 | ||||||||
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | 4,998,831 | B | 4,998,831 | ||||||||
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | 4,986,502 | B | 4,986,502 | ||||||||
| HONGKONGSECURITIESCLEARINGCOMPANYLIMITED | 4,420,086 | A | 4,420,086 | ||||||||
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | 4,026,863 | B | 4,026,863 | ||||||||
WhetherornottheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditiontakeagreedrepurchasetradingduringthereportperiod
□Yes?NoThereisnoagreedrepurchasetradingtakenbytheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditionduringthereportperiod.
(2)SituationforthecontrollingshareholdersoftheCompanyPropertyofholdingshareholders:PropertyofholdingmainbodyundefinedTypeofholdingshareholders:Legalrepresentative
Nameofcontrollingshareholder
| Nameofcontrollingshareholder | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiChangyuGroupCo.,Ltd. | ZHOUHongjiang | 1997.04.27 | 913706002656458244 | Productionofwine,healthyliquor,distilledliquorandbeverages(onlyproducedbysubsidiaries,shareholdingcompaniesandbranches),salesoftheabove-mentionedproducts,cultivationofagriculturalproductsandexportbusinessunderthescopeofpermission. |
| Equitysituationfortheotherdomesticlistedcompaniescontrolledorsharedbythecontrollingshareholdersduringthereportperiod | No. | |||
Changesinthecontrollingshareholderduringthereportperiod?Available?Notavailable
| FIDELITYCHINASPECIALSITUATIONSPLC | 3,779,202 | B | 3,779,202 |
| Theexplanationfortheassociatedrelationshipandaccordantactionofthetop10shareholderswithunrestrictedshares,thetheassociatedrelationshipandaccordantactionbetweenthetop10shareholderswithunrestrictedsharesandthetop10shareholders | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,andtherelationshipamongtheothershareholdersisunknown. | ||
| Explanationforthetop10shareholderswhoinvolvedinfinancingactivitiesandstocktradingbusiness | Thetop10shareholdersdonotinvolveinfinancingactivitiesandstocktradebusiness. | ||
Therearenochangesinthecontrollingshareholderduringthereportperiod.
(3)SituationfortheactualcontrollersoftheCompanyanitspersonsactinginconcertPropertyofactualcontrollers:domesticotherinstitutions;foreignotherinstitutionsTypeofactualcontrollers:Legalrepresentative
Nameofactualcontrollers
| Nameofactualcontrollers | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiYuhuaInvestment&DevelopmentCo.,Ltd. | JIANGHua | 2004.10.28 | 76779294-7 | Understatepermission,propertyinvestment,tenancyofmachineandfacility,wholesaleandretailofconstructionmaterial,chemicalproducts(chemicalhazardproductsexcluded),hardwareandelectronicalproducts,grapeplantation. |
| ILLVASaronnoHoldingS.p.a. | ALDINOMARZORATI | 1984.07.25 | － | Directlyorindirectlyconducttheproductionanddistributionoffoodproducts(alcoholicproductsincluded)aswellasindustrial,commercial,financialandserviceactivitiesofanyotherkindsthroughjoint-stockcompaniesandorganizations. |
| InternationalFinanceCorporation | MakhtarDiop | 1956.07.25 | － | InternationalFinanceCorporationisoneofthemembersofWorldBank,mainlydedicatedtoinvestmentinprivatesectorsofdevelopingcountrieswhileprovidingtechnicalsupportandconsultationservice.Thecorporationisamultilateralfinancialinstitutionthatranksfirstintheworldintermsofprovidingcapitalstockandloanstodevelopingcountries.Itspurposeistopromotesustainableinvestmentsofprivatesectorsofdevelopingcountriesinordertoalleviatepovertyandimprovepeople’slife. |
| YantaiGuofengInvestmentHoldingsGroupCo.,Ltd. | RONGFeng | 2009.02.12 | 00426068-6 | Operatingmanagementofstate-ownedpropertyright(stockright)authorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;Financing,investmentandoperatingmanagementofgovernmentprojects,suchasstrategicinvestmentandindustrialinvestmentandsoon;Capitaloperation(includingacquisition,reintegrationandtransfer,etc)ofstate-ownedpropertyrightandstate-ownedstockrightwithinthescopeofauthorization;Venturecapitalinvestmentbusiness;Agencyofventurecapitalinvestmentbusinessofotherventureinvestmententerprisesorindividuals;Participationintheestablishmentofventurecapitalinvestmententerprisesandventurecapitalinvestmentmanagementconsultantinstitutions;Investmentandfinancingserviceandconsultingbusiness;Investmentandfinancingconsultantbusiness;OtherbusinessauthorizedbyState-ownedAssetsSupervisionandAdministrationCommissionof |
YantaiMunicipalGovernment;wholesaleandretailofnon-ferrousmetalmineralproducts,gold(spotgood),silver(spotgood),chemicalproducts(excludingdangerousgoods),batterymaterials(excludingdangerouschemicals);importandexportofgoodsandtechnologies.(Thebusinessscopedoesnotincludenationalpre-approvalprojectsandprojectsrestrictedbynationalindustrialpolicies;projectsthataresubjecttoapprovalaccordingtolawcanonlycarryoutbusinessactivitiesafterapprovalbyrelevantdepartments).
| YantaiMunicipalGovernment;wholesaleandretailofnon-ferrousmetalmineralproducts,gold(spotgood),silver(spotgood),chemicalproducts(excludingdangerousgoods),batterymaterials(excludingdangerouschemicals);importandexportofgoodsandtechnologies.(Thebusinessscopedoesnotincludenationalpre-approvalprojectsandprojectsrestrictedbynationalindustrialpolicies;projectsthataresubjecttoapprovalaccordingtolawcanonlycarryoutbusinessactivitiesafterapprovalbyrelevantdepartments). | ||
| Equitysituationfortheotherdomesticlistedcompaniescontrolledbytheactualcontrollerduringthereportperiod | YantaiYuhuaInvestment&DevelopmentCo.,Ltd.didnotcontroltheequityofotherdomesticandforeignlistedcompaniesexcepttheCompanyduringthereportingperiod;ItisnotclearthatotheractualcontrollerscontroltheequityofotherdomesticandforeignlistedcompaniesotherthantheCompanyduringthereportingperiod. | |
Changesoftheactualcontrollersduringthereportperiod?Available?NotavailableTherearenochangesinactualcontrollersduringthereportperiod.
IntroductionforpropertyrightandcontrolrelationsbetweentheCompanyanditsactualcontrollers
ActualcontrollercontrolstheCompanythroughatrustorotherassetmanagementways□Available?Notavailable
(4)Thecompany’scontrollingshareholderorthelargestshareholderanditsconcertedactionperson’scumulativepledgedsharesaccountfor80%ofthecompany’ssharesheldbythem
□Available?Notavailable
(5)Otherinstitutionalshareholdersholdingmorethan10%shares□Available?Notavailable
(6)Sharesreductionsituationsofholdingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects
□Available?Notavailable
4.ThespecificimplementationofsharerepurchaseduringthereportingperiodImplementationprogressofsharerepurchase
□Available?NotavailableImplementationprogressofreducingsharerepurchasedbycentralizedbidding
□Available?Notavailable
VIII.RelatedSituationofPreferredShares
□Available?NotavailableTherearenopreferredsharesduringthereportperiod.
IX.RelatedSituationofBonds
□Available?Notavailable
X.FinancialReport
1.AuditReport
Typeofauditopinion
| Typeofauditopinion | Standardunqualifiedauditopinion |
| Datesignedonauditreport | April11th,2023 |
| Auditagencyname | KPMGHuazhenCertifiedPublicAccountantsCo.,Ltd.(specialgeneralpartnership) |
| AuditreportNo. | KPMGHuazhenShenZiNo.2304287 |
| Certifiedpublicaccountant’sname | Ms.TingWang,Ms.HuiJiang |
YANTAICHANGYUPIONEERWINECOMPANYLIMITED
ENGLISHTRANSLATIONOFFINANCIALSTATEMENTSFORTHEYEAR1JANUARY2022TO31DECEMBER2022IFTHEREISANYCONFLICTBETWEENTHECHINESEVERSIONANDITSENGLISH
TRANSLATION,THECHINESEVERSIONWILLPREVAIL
AUDITOR’SREPORT
KPMGHuazhenShenZiNo.2304287AllShareholdersofYantaiChangyuPioneerWineCompanyLimited:
OpinionWehaveauditedtheaccompanyingfinancialstatementsofYantaiChangyuPioneerWineCompanyLimited(“YantaiChangyu”),whichcomprisetheconsolidatedbalancesheetandcompanybalancesheetasat31December2022,theconsolidatedincomestatementandcompanyincomestatement,theconsolidatedcashflowstatementandcompanycashflowstatement,theconsolidatedstatementofchangesinshareholders’equityandcompanystatementofchangesinshareholders’equityfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedfinancialpositionandcompanyfinancialpositionofYantaiChangyuasat31December2022,andofitsconsolidatedfinancialperformanceandcompanyfinancialperformanceanditsconsolidatedcashflowsandcompanycashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceofthePeople’sRepublicofChina.BasisforOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditingforCertifiedPublicAccountants(“CSAs”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentofYantaiChangyuinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants(“theCode”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2304287KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsfortheyear.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
RecognitionofSalesRevenuefromDistributors
| RecognitionofSalesRevenuefromDistributors | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”22and“V.Notestotheconsolidatedfinancialstatements”37. | |
| TheKeyAuditMatters | HowtheMatterwasAddressedinOurAudit |
| TheprincipalactivitiesofYantaiChangyuanditssubsidiaries(hereinafterreferredtoas“YantaiChangyuGroup”)includemanufactureandsalesofwine,brandyandsparklingwine.TherevenueofYantaiChangyuGroupismainlyderivedfromsalesofdistributors.AlldistributortransactiontermsadopttheunifiedtransactiontermsformulatedbyYantaiChangyuGroup.Basedonthecontractualagreementandthebusinessarrangement,YantaiChangyusellsproductstodistributorsandthetransferofproductownershipiscompletedandtherevenueisrecognisedwhenthegoodsaredeliveredtodistributorsandsignedforacceptance.AsrevenueisoneofthekeyperformanceindicatorsofYantaiChangyuGroup,thereisariskthatmanagementmayrecogniserevenueearlierorlaterinordertomeetspecificperformancetargetsorexpectations,therefore,theriskofcut-offmisstatementarisingfromdistributors’salesrevenueisidentifiedasakeyauditmatter. | Ourauditprocedurestoevaluaterevenuerecognitionofsalesrevenuefromdistributorsincludedthefollowing:?UnderstandandevaluatetheManagement’sdesignandoperationeffectivenessofkeyinternalcontrolsrelatedtodistributorsalesrevenuerecognition;?SelectingthesalescontractsYantaiChangyusignedwithdistributorsinordertoexaminewhetherYantaiChangyuhasadoptedtheunifiedtransactionterms,andevaluatewhethertheaccountingpolicyofrevenuerecognitionmeetstherequirementsoftheAccountingStandardsforBusinessEnterprises;?Onasamplingbasis,reconciletherevenuerecordedfortheyeartorelevantsupportingfilessuchasrelevantordersandsigneddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinaccordancewiththeaccountingpolicyofYantaiChangyu; |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2304287
KeyAuditMatters(continued)
RecognitionofSalesRevenuefromDistributors(continued)
| RecognitionofSalesRevenuefromDistributors(continued) | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”22and“V.Notestotheconsolidatedfinancialstatements”37. | |
| TheKeyAuditMatters | HowtheMatterwasAddressedinOurAudit |
| ?Onasamplingbasis,reconcilethesalestransactionbeforeandafterbalancesheetdatetorelevantsupportingfilessuchasrelevantorders,signeddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinappropriateaccountingperiod;?Checkthesalesrecordafterthebalancesheetdatetoidentifysignificantsalesreturnsandcheckrelevantsupportingfiles(Ifapplicable)inordertoevaluatewhetherrelevantrevenueisrecordedintheappropriateaccountingperiod;?Selectrevenueaccountingentriesthatmeetspecificriskcriteriaandcheckrelatedsupportingdocuments. | |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2304287
OtherInformationManagementofYantaiChangyuisresponsiblefortheotherinformation.Theotherinformationcomprisesalltheinformationincludedinthe2022annualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsManagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises,andforthedesign,implementationandmaintenanceofsuchinternalcontrolnecessarytoenablethatthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingYantaiChangyu’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidateYantaiChangyuortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingYantaiChangyu’sfinancialreportingprocess.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2304287
Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements(continued)AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,
whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignaudit
proceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessof
accountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisof
accountingand,basisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonYantaiChangyu’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycauseYantaiChangyutoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,
includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationofthe
entitiesorbusinessactivitieswithintheGrouptoexpressourauditopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheGroupaudit.Weremainsolelyresponsibleforourauditopinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2304287Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements(continued)Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependenceand,whereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
KPMGHuazhenLLPCertifiedPublicAccountantsRegistered(Stamp)inthePeople’sRepublicofChina
WangTing(EngagementPartner)(Signatureandstamp)
Beijing,ChinaJiangHui
(Signatureandstamp)Date:11042023
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2022
(ExpressedinRenminbiYuan)
Note
| Note | 31December2022 | 31December2021 | |
| Assets | |||
| Currentassets | |||
| Cashatbankandonhand | V.1 | 1,651,454,115 | 1,567,095,993 |
| Billsreceivable | V.2 | 2,712,460 | 42,827,666 |
| Accountsreceivable | V.3 | 343,982,985 | 291,006,410 |
| Receivablesunderfinancing | V.4 | 309,329,918 | 364,457,497 |
| Prepayments | V.5 | 60,415,508 | 75,235,879 |
| Otherreceivables | V.6 | 70,542,398 | 30,125,270 |
| Inventories | V.7 | 2,903,398,515 | 2,802,622,520 |
| Othercurrentassets | V.8 | 185,337,393 | 217,152,601 |
| Totalcurrentassets | 5,527,173,292 | 5,390,523,836 | |
| Non-currentassets | ? | ||
| Long-termequityinvestments | V.9 | 41,371,385 | 46,496,510 |
| Investmentproperties | V.10 | 22,115,318 | 24,502,258 |
| Fixedassets | V.11 | 6,028,137,972 | 5,687,867,314 |
| Constructioninprogress | V.12 | 40,934,161 | 590,172,099 |
| Bearerbiologicalassets | V.13 | 184,420,741 | 193,712,942 |
| Right-of-useassets | V.14 | 139,887,159 | 134,569,039 |
| Intangibleassets | V.15 | 578,240,846 | 617,866,879 |
| Goodwill | V.16 | 107,163,616 | 112,374,541 |
| Long-termdeferredexpenses | V.17 | 274,699,232 | 284,593,163 |
| Deferredtaxassets | V.18 | 227,362,656 | 245,210,731 |
| Othernon-currentassets | V.19 | - | 144,120,442 |
| Totalnon-currentassets | 7,644,333,086 | 8,081,485,918 | |
| Totalassets | 13,171,506,378 | 13,472,009,754 |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2022(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2022 | 31December2021 | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities | |||
| Short-termloans | V.20 | 389,378,480 | 622,066,457 |
| Accountspayable | V.21 | 503,323,746 | 493,453,816 |
| Contractliabilities | V.22 | 165,727,991 | 147,120,716 |
| Employeebenefitspayable | V.23 | 182,951,538 | 195,019,441 |
| Taxespayable | V.24 | 239,695,902 | 342,322,300 |
| Otherpayables | V.25 | 372,608,689 | 453,033,491 |
| Othercurrentliabilities | V.26 | 18,945,706 | 18,374,193 |
| Non-currentliabilitiesduewithinoneyear | V.27 | 144,020,834 | 110,865,126 |
| Totalcurrentliabilities | 2,016,652,886 | 2,382,255,540 | |
| Non-currentliabilities | ? | ||
| Long-termloans | V.28 | 128,112,115 | 176,047,043 |
| Leaseliabilities | V.14 | 109,505,093 | 101,811,588 |
| Long-termpayables | V.29 | 42,000,000 | 64,000,000 |
| Deferredincome | V.30 | 38,389,058 | 41,295,338 |
| Deferredtaxliabilities | V.18 | 11,266,932 | 11,803,970 |
| Othernon-currentliabilities | V.31 | - | 2,119,671 |
| Totalnon-currentliabilities | 329,273,198 | 397,077,610 | |
| Totalliabilities | 2,345,926,084 | 2,779,333,150 |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2022(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2022 | 31December2021 | |
| Liabilitiesandshareholders’equity(continued) | |||
| Shareholders’equity | |||
| Sharecapital | V.32 | 685,464,000 | 685,464,000 |
| Capitalreserve | V.33 | 524,968,760 | 524,968,760 |
| Othercomprehensiveincome | V.34 | (23,760,238) | (34,707,177) |
| Surplusreserve | V.35 | 342,732,000 | 342,732,000 |
| Retainedearnings | V.36 | 9,049,649,211 | 8,929,426,600 |
| TotalequityattributabletoshareholdersoftheCompany | 10,579,053,733 | 10,447,884,183 | |
| Non-controllinginterests | 246,526,561 | 244,792,421 | |
| Totalowners’equity | 10,825,580,294 | 10,692,676,604 | |
| Totalliabilitiesandshareholders’equity | 13,171,506,378 | 13,472,009,754 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2022
(ExpressedinRenminbiYuan)
Note
| Note | 31December2022 | 31December2021 | |
| Assets | |||
| Currentassets | |||
| Cashatbankandonhand | 874,241,771 | 562,588,819 | |
| Accountsreceivable | 2,301,505 | - | |
| Billsreceivable | XIV.1 | - | 9,800,000 |
| Receivablesunderfinancing | XIV.2 | 41,061,417 | 62,411,636 |
| Prepayments | 3,518,783 | 406,500 | |
| Otherreceivables | XIV.3 | 720,176,320 | 398,072,976 |
| Inventories | 335,031,522 | 383,294,208 | |
| Othercurrentassets | 20,080,844 | 20,637,860 | |
| Totalcurrentassets | 1,996,412,162 | 1,437,211,999 | |
| Non-currentassets | ? | ||
| Long-termequityinvestments | XIV.4 | 7,705,853,378 | 7,599,421,494 |
| Investmentproperties | 22,115,318 | 24,502,258 | |
| Fixedassets | 216,651,596 | 231,284,799 | |
| Constructioninprogress | 375,969 | 255,996 | |
| Bearerbiologicalassets | 108,370,882 | 114,753,306 | |
| Right-of-useassets | 36,153,799 | 36,826,342 | |
| Intangibleassets | 75,298,044 | 78,043,888 | |
| Deferredtaxassets | 12,120,605 | 18,033,185 | |
| Othernon-currentassets | 1,850,200,000 | 2,023,500,000 | |
| Totalnon-currentassets | 10,027,139,591 | 10,126,621,268 | |
| Totalassets | 12,023,551,753 | 11,563,833,267 |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2022(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2022 | 31December2021 | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities | |||
| Short-termloans | 100,000,000 | 150,000,000 | |
| Accountspayable | 100,583,550 | 90,339,903 | |
| Employeebenefitspayable | 68,112,832 | 66,770,838 | |
| Taxespayable | 39,101,259 | 32,588,429 | |
| Otherpayables | 499,751,275 | 445,874,937 | |
| Non-currentliabilitiesduewithinoneyear | 5,129,607 | 1,485,190 | |
| Totalcurrentliabilities | 812,678,523 | 787,059,297 | |
| Non-currentliabilities | ? | ||
| Leaseliabilities | 38,757,167 | 43,312,517 | |
| Deferredincome | 877,814 | 2,268,527 | |
| Deferredtaxliabilities | - | 88,555 | |
| Othernon-currentliabilities | - | 1,164,471 | |
| Totalnon-currentliabilities | 39,634,981 | 46,834,070 | |
| Totalliabilities | 852,313,504 | 833,893,367 |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2022(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2022 | 31December2021 | |
| Liabilitiesandshareholders’equity(continued) | |||
| Shareholders’equity | |||
| Sharecapital | 685,464,000 | 685,464,000 | |
| Capitalreserve | 560,182,235 | 560,182,235 | |
| Surplusreserve | 342,732,000 | 342,732,000 | |
| Retainedearnings | 9,582,860,014 | 9,141,561,665 | |
| Totalowners’equity | 11,171,238,249 | 10,729,939,900 | |
| Totalliabilitiesandshareholders’equity | 12,023,551,753 | 11,563,833,267 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2022
(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| I.Operatingincome | V.37 | 3,918,941,160 | 3,953,067,583 |
| Less:Operatingcosts | V.37 | 1,680,794,732 | 1,647,789,874 |
| Taxesandsurcharges | V.38 | 289,656,627 | 264,057,570 |
| Sellinganddistributionexpenses | V.39 | 1,028,966,138 | 998,954,105 |
| Generalandadministrativeexpenses | V.40 | 287,605,531 | 299,076,376 |
| Researchanddevelopmentexpenses | 15,431,310 | 10,919,262 | |
| Financialexpenses | V.41 | 7,256,207 | 21,178,727 |
| Including:Interestexpenses | 26,856,890 | 28,851,606 | |
| Interestincome | 24,186,351 | 19,558,354 | |
| Add:Otherincome | V.42 | 33,145,440 | 48,240,741 |
| Investmentlosses | V.43 | (3,447,794) | (2,784,997) |
| Including:Lossesfrominvestmentassociatesandinjointventures | (3,447,794) | (2,784,997) | |
| Creditreversal/(losses) | V.44 | 4,752,797 | (7,937,144) |
| Impairmentlosses | V.45 | (5,789,670) | (19,874,251) |
| Lossesfromdisposalofassets | V.46 | (16,191,903) | (11,939,284) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2022(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| II.Operatingprofit | 621,699,485 | 716,796,734 | |
| Add:Non-operatingincome | V.47 | 6,832,809 | 5,214,304 |
| Less:Non-operatingexpenses | V.47 | 2,949,991 | 6,311,844 |
| III.Totalprofit | 625,582,303 | 715,699,194 | |
| Less:Incometaxexpenses | V.48 | 194,233,589 | 209,020,821 |
| IV.Netprofit | 431,348,714 | 506,678,373 | |
| (1)Netprofitclassifiedbycontinuityofoperations: | ? | ||
| 1.Netprofitfromcontinuingoperations | 431,348,714 | 506,678,373 | |
| 2.Netprofitfromdiscontinuedoperations | - | - | |
| (2)Netprofitclassifiedbyownership: | ? | ||
| 1.NetprofitattributabletoownersoftheCompany | 428,681,411 | 500,102,606 | |
| 2.Non-controllinginterests | 2,667,303 | 6,575,767 | |
| V.Othercomprehensiveincome,netoftax | 12,282,545 | (39,307,949) | |
| (1)Othercomprehensiveincome(netoftax)attributabletoshareholdersoftheCompany | 10,946,939 | (35,283,306) | |
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | 10,946,939 | (35,283,306) | |
| (2)Othercomprehensiveincome(netoftax)attributabletonon-controllinginterests | 1,335,606 | (4,024,643) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2022(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| VI.Totalcomprehensiveincomefortheyear | 443,631,259 | 467,370,424 | |
| (1)AttributabletoshareholdersoftheCompany | 439,628,350 | 464,819,300 | |
| (2)Attributabletonon-controllinginterests | 4,002,909 | 2,551,124 | |
| VII.Earningspershare: | ? | ||
| (1)Basicearningspershare | V.49 | 0.63 | 0.73 |
| (2)Dilutedearningspershare | V.49 | 0.63 | 0.73 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2022
(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| I.Operatingincome | XIV.5 | 675,062,421 | 578,895,802 |
| Less:Operatingcost | XIV.5 | 577,316,851 | 472,158,738 |
| Taxesandsurcharges | 27,984,695 | 38,263,612 | |
| Generalandadministrativeexpenses | 58,441,386 | 74,948,200 | |
| Researchanddevelopmentexpenses | 2,674,191 | 907,975 | |
| Financialexpenses | (4,912,837) | 2,193,348 | |
| Including:Interestexpenses | 3,238,235 | 5,870,092 | |
| Interestincome | 10,840,336 | 7,122,455 | |
| Add:Otherincome | 5,318,209 | 6,108,832 | |
| Investmentincome | XIV.6 | 736,516,479 | 867,523,178 |
| Proceedsfromthedisposalofassets | 33,453 | - | |
| II.Operatingprofit | 755,426,276 | 864,055,939 | |
| Add:Non-operatingincome | 3,665,752 | 997,416 | |
| Less:Non-operatingexpenses | 1,281,047 | 3,295,694 |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2022(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| III.Totalprofit | 757,810,981 | 861,757,661 | |
| Less:Incometaxexpenses | 8,053,832 | 6,703,679 | |
| IV.Netprofit | 749,757,149 | 855,053,982 | |
| (i)Netprofitfromcontinuingoperations | 749,757,149 | 855,053,982 | |
| (ii)Netprofitfromdiscontinuedoperations | - | - | |
| V.Othercomprehensiveincome,netoftax | - | - | |
| VI.Totalcomprehensiveincomefortheyear | 749,757,149 | 855,053,982 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2022(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 3,681,133,282 | 3,674,741,084 | |
| Refundoftaxes | 186,197,815 | 48,716,047 | |
| Proceedsfromotheroperatingactivities | V.50(1) | 61,825,407 | 89,142,251 |
| Sub-totalofcashinflows | 3,929,156,504 | 3,812,599,382 | |
| Paymentforgoodsandservices | 1,266,006,299 | 957,499,905 | |
| Paymenttoandforemployees | 493,589,542 | 507,532,110 | |
| Paymentofvarioustaxes | 718,434,215 | 659,986,692 | |
| Paymentforotheroperatingactivities | V.50(2) | 582,249,801 | 562,198,017 |
| Sub-totalofcashoutflows | 3,060,279,857 | 2,687,216,724 | |
| Netcashflowsfromoperatingactivities | V.51(1) | 868,876,647 | 1,125,382,658 |
| II.Cashflowsfrominvestingactivities: | ? | ||
| Proceedsfromdisposalofinvestments | 133,200,000 | 93,553,062 | |
| Investmentreturnsreceived | 1,340,518 | 2,587,932 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 28,412,630 | 7,923,724 | |
| Sub-totalofcashinflows | 162,953,148 | 104,064,718 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 198,791,362 | 225,502,766 | |
| Paymentforacquisitionofinvestments | 108,200,000 | 54,218,000 | |
| Sub-totalofcashoutflows | 306,991,362 | 279,720,766 | |
| Netcashflowsfrominvestingactivities | (144,038,214) | (175,656,048) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2022(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| III.Cashflowsfromfinancingactivities: | ? | ||
| Proceedsfrominvestors | - | 7,840,000 | |
| Proceedsfromborrowings | 641,331,495 | 847,358,786 | |
| Sub-totalofcashinflows | 641,331,495 | 855,198,786 | |
| Repaymentsofborrowings | 903,179,998 | 1,036,788,771 | |
| Paymentfordividends,profitdistributionsorinterest | 333,134,330 | 302,051,763 | |
| Paymentforotherfinancingactivities | V.50(3) | 19,774,744 | 15,904,567 |
| Sub-totalofcashoutflows | 1,256,089,072 | 1,354,745,101 | |
| Netcashflowsfromfinancingactivities | (614,757,577) | (499,546,315) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | 345,715 | (518,371) | |
| V.Netincreaseincashandcashequivalents | V.51(1) | 110,426,571 | 449,661,924 |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 1,502,327,029 | 1,052,665,105 | |
| VI.Cashandcashequivalentsattheendoftheyear | V.51(2) | 1,612,753,600 | 1,502,327,029 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2022
(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 610,597,839 | 514,762,698 | |
| Taxreturnsreceived | 1,597,879 | - | |
| Proceedsfromotheroperatingactivities | 84,262,490 | 47,112,100 | |
| Sub-totalofcashinflows | 696,458,208 | 561,874,798 | |
| Paymentforgoodsandservices | 401,136,965 | 313,397,323 | |
| Paymenttoandforemployees | 67,906,188 | 76,053,780 | |
| Paymentofvarioustaxes | 50,709,754 | 39,248,076 | |
| Paymentforotheroperatingactivities | 23,452,120 | 71,110,685 | |
| Sub-totalofcashoutflows | 543,205,027 | 499,809,864 | |
| Netcashflowsfromoperatingactivities | 153,253,181 | 62,064,934 | |
| II.Cashflowsfrominvestingactivities: | ? | ||
| Proceedsfromdisposalofinvestments | 118,200,000 | 38,200,000 | |
| Investmentreturnsreceived | 489,479,719 | 1,068,448,220 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 1,853,309 | 408,885 | |
| Proceedsfromborrowingstosubsidiaries | 312,000,000 | 162,200,000 | |
| Sub-totalofcashinflows | 921,533,028 | 1,269,257,105 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 21,831,779 | 22,919,289 | |
| Paymentforacquisitionofinvestments | 218,200,000 | 38,200,000 | |
| Cashpaidtosubsidiaries | 138,700,000 | 655,000,000 | |
| Sub-totalofcashoutflows | 378,731,779 | 716,119,289 | |
| Netcashflowsfrominvestingactivities | 542,801,249 | 553,137,816 |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2022(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2022 | 2021 | |
| III.Cashflowsfromfinancingactivities: | |||
| Proceedsfromborrowings | 100,000,000 | 150,000,000 | |
| Sub-totalofcashinflows | 100,000,000 | 150,000,000 | |
| Repaymentsofborrowings | 150,000,000 | 150,000,000 | |
| Paymentfordividendsorinterest | 311,697,035 | 280,055,692 | |
| Paymentforotherfinancingactivities | 4,796,838 | 3,460,687 | |
| Sub-totalofcashoutflows | 466,493,873 | 433,516,379 | |
| Netcashflowsfromfinancingactivities | (366,493,873) | (283,516,379) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | - | - | |
| V.Netincreaseincashandcashequivalents | 329,560,557 | 331,686,371 | |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 513,809,440 | 182,123,069 | |
| VI.Cashandcashequivalentsattheendoftheyear | 843,369,997 | 513,809,440 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equityfortheyearended31December2022
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 685,464,000 | 524,968,760 | (34,707,177) | 342,732,000 | 8,929,426,600 | 10,447,884,183 | 244,792,421 | 10,692,676,604 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | ? | ? | ? | |
| (1)Totalcomprehensiveincome | - | - | 10,946,939 | - | 428,681,411 | 439,628,350 | 4,002,909 | 443,631,259 | |
| (2)Appropriationofprofits | V.36 | ? | ? | ? | ? | ? | ? | ? | ? |
| Distributionstoshareholders | - | - | - | - | (308,458,800) | (308,458,800) | (2,268,769) | (310,727,569) | |
| III.Balanceattheendoftheyear | 685,464,000 | 524,968,760 | (23,760,238) | 342,732,000 | 9,049,649,211 | 10,579,053,733 | 246,526,561 | 10,825,580,294 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equity(continued)fortheyearended31December2021
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 685,464,000 | 524,968,760 | 576,129 | 342,732,000 | 8,714,091,755 | 10,267,832,644 | 236,597,990 | 10,504,430,634 | |
| Add:Changesinaccountingpolicies | - | - | - | - | (10,582,161) | (10,582,161) | - | (10,582,161) | |
| Adjustedbalanceatthebeginningoftheyear | 685,464,000 | 524,968,760 | 576,129 | 342,732,000 | 8,703,509,594 | 10,257,250,483 | 236,597,990 | 10,493,848,473 | |
| II.Changesinequityduringtheyear | |||||||||
| (1)Totalcomprehensiveincome | - | - | (35,283,306) | - | 500,102,606 | 464,819,300 | 2,551,124 | 467,370,424 | |
| (2)Shareholders’contributions | |||||||||
| Establishmentofsubsidiaries | - | - | - | - | - | - | 7,840,000 | 7,840,000 | |
| (3)Appropriationofprofits | V.36 | ||||||||
| Distributionstoshareholders | - | - | - | - | (274,185,600) | (274,185,600) | (2,196,693) | (276,382,293) | |
| III.Balanceattheendoftheyear | 685,464,000 | 524,968,760 | (34,707,177) | 342,732,000 | 8,929,426,600 | 10,447,884,183 | 244,792,421 | 10,692,676,604 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2022
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 9,141,561,665 | 10,729,939,900 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | |
| (1)Totalcomprehensiveincome | - | - | - | 749,757,149 | 749,757,149 | |
| (2)Appropriationofprofits | ? | ? | ? | ? | ? | |
| Distributionstoshareholders | - | - | - | (308,458,800) | (308,458,800) | |
| III.Balanceattheendoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 9,582,860,014 | 11,171,238,249 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2021(continued)
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 8,567,313,551 | 10,155,691,786 | |
| Add:Changesinaccountingpolicies | III.33 | - | - | - | (6,620,268) | (6,620,268) |
| Adjustedbalanceatthebeginningoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 8,560,693,283 | 10,149,071,518 | |
| II.Changesinequityduringtheyear | ||||||
| (1)Totalcomprehensiveincome | - | - | - | 855,053,982 | 855,053,982 | |
| (2)Appropriationofprofits | ||||||
| Distributionstoshareholders | - | - | - | (274,185,600) | (274,185,600) | |
| III.Balanceattheendoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 9,141,561,665 | 10,729,939,900 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to189formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedNotestothefinancialstatements
(ExpressedinRenminbiYuanunlessotherwiseindicated)I.Companystatus
YantaiChangyuPioneerWineCo.,Ltd.(the"Company”orthe“JointStockCompany”)was
incorporatedasajointstocklimitedcompanyinaccordancewiththeCompanyLawofthe
People'sRepublicofChina(the"PRC")inareorganisationcarriedoutbyYantaiChangyu
GroupCo.,Ltd.("ChangyuGroup"),inwhichChangyuGroupCompanyinjectedcertain
assetsandliabilitiesinrelationtothewine,brandy,andsparklingwineproductionandsales
businessestotheCompany.TheCompanyanditssubsidiaries(the"Group")areprincipally
engagedintheproductionandsalesofwine,brandy,sparklingwine,grapegrowingand
acquisition,aswellastravelresourcedevelopment,etc..RegistrationplaceoftheCompany
isYantai,Shandong.HeadquarteroftheCompanyislocatedatNo.56DaMaLu,Zhifu
District,Yantai,Shandong,PRC.
Asat31December2022thetotalsharesissuedbytheCompanyamountsto685,464,000
shares.PleaserefertoNoteV.32indetail.
TheholdingcompanyoftheGroupisChangyuGroupCompany,whichisjointlycontrolledby
YantaiGuoFengInvestmentHoldingLtd.,ILLVASARONNOHOLDINGSPA,International
FinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited.
Thefinancialstatementshavebeenauthorisedbytheboardofdirectorson11042022.
AccordingtotheCompany'sarticlesofassociation,thefinancialstatementswillbereviewed
byshareholdersontheshareholder'smeeting.
Forconsolidationscopeoftheyear,pleaserefertoNoteVI"Equityinotherentities"indetail.II.Basisofpreparation
Thefinancialstatementshavebeenpreparedonthegoingconcernbasis.III.Significantaccountingpoliciesandaccountingestimates1Statementofcompliance
Thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsof
AccountingStandardsforBusinessEnterprisesorreferredtoasChinaAccountingStandards
(“CAS”)issuedbytheMOF.Thesefinancialstatementspresenttrulyandcompletelythe
consolidatedfinancialpositionandfinancialpositionoftheCompanyasat31December
2022,andtheconsolidatedfinancialperformanceandfinancialperformanceandthe
consolidatedcashflowsandcashflowsoftheCompanyfortheyearthenended.
Thesefinancialstatementsalsocomplywiththedisclosurerequirementsof“Regulationon
thePreparationofInformationDisclosuresbyCompaniesIssuingSecurities,No.15:General
RequirementsforFinancialReports”asrevisedbytheChinaSecuritiesRegulatory
Commission(“CSRC”)in2014.
2Accountingperiod
Theaccountingperiodisfrom1Januaryto31December.3Operatingcycle
TheCompanytakestheperiodfromtheacquisitionofassetsforprocessingtountilthe
ultimaterealisationofcashorcashequivalentsasanormaloperatingcycle.Theoperating
cycleoftheCompanyis12months.4Functionalcurrency
Renminbi("RMB")isthecurrencyoftheprimaryeconomicenvironmentinwhichthe
Companyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomestic
subsidiarieschooseRMBastheirfunctionalcurrency.Overseassubsidiariesofthe
CompanyadoptEuro,ChileanPesoandAustralianDollarastheirfunctionalcurrenciesonthe
basisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadopts
RMBtoprepareitsfinancialstatements.5Accountingtreatmentsforbusinesscombinationsinvolvingentitiesundercommoncontrol
andnotundercommoncontrol
AtransactionconstitutesabusinesscombinationwhentheGroupobtainscontrolofoneor
moreentities(oragroupofassetsornetassets).Businesscombinationisclassifiedas
eitherbusinesscombinationsinvolvingenterprisesundercommoncontrolorbusiness
combinationsnotinvolvingenterprisesundercommoncontrol.
Foratransactionnotinvolvingenterprisesundercommoncontrol,theacquirerdetermines
whetheracquiredsetofassetsconstituteabusiness.TheGroupmayelecttoapplythe
simplifiedassessmentmethod,theconcentrationtest,todeterminewhetheranacquiredset
ofassetsisnotabusiness.Iftheconcentrationtestismetandthesetofassetsis
determinednottobeabusiness,nofurtherassessmentisneeded.Iftheconcentrationtest
isnotmet,theGroupshallperformtheassessmentaccordingtotheguidanceonthe
determinationofabusiness.
Whenthesetofassetsthegroupacquireddoesnotconstituteabusiness,acquisitioncosts
shouldbeallocatedtoeachidentifiableassetsandliabilitiesattheiracquisition?datefair
values.Itisnotrequiredtoapplytheaccountingofbusinesscombinationdescribedas
below.
(1)Businesscombinationsinvolvingentitiesundercommoncontrol
Abusinesscombinationinvolvingentitiesundercommoncontrolisabusinesscombinationin
whichallofthecombiningentitiesareultimatelycontrolledbythesamepartyorpartiesboth
beforeandafterthebusinesscombination,andthatcontrolisnottransitory.Theassets
acquiredandliabilitiesassumedaremeasuredbasedontheircarryingamountsinthe
consolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.
Thedifferencebetweenthecarryingamountofthenetassetsacquiredandtheconsideration
paidforthecombination(orthetotalparvalueofsharesissued)isadjustedagainstshare
premiuminthecapitalreserve,withanyexcessadjustedagainstretainedearnings.Any
costsdirectlyattributabletothecombinationarerecognisedinprofitorlosswhenincurred.
Thecombinationdateisthedateonwhichonecombiningentityobtainscontrolofother
combiningentities.
(2)Businesscombinationsinvolvingentitiesnotundercommoncontrol
Abusinesscombinationinvolvingentitiesnotundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination.Where(1)theaggregateoftheacquisition-datefairvalueofassetstransferred(includingtheacquirer’spreviouslyheldequityinterestintheacquiree),liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree,exceeds(2)theacquirer’sinterestintheacquisition-datefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceisrecognisedasgoodwill(seeNoteIII.18).If(1)islessthan(2),thedifferenceisrecognisedinprofitorlossforthecurrentperiod.Otheracquisition-relatedcostsareexpensedwhenincurred.Theacquiree’sidentifiableasset,liabilitiesandcontingentliabilities,iftherecognitioncriteriaaremet,arerecognisedbytheGroupattheiracquisition-datefairvalue.Theacquisitiondateisthedateonwhichtheacquirerobtainscontroloftheacquiree.Forabusinesscombinationinvolvingentitiesnotundercommoncontrolandachievedinstages,theGroupremeasuresitspreviously-heldequityinterestintheacquireetoitsacquisition-datefairvalueandrecognisesanyresultingdifferencebetweenthefairvalueandthecarryingamountasinvestmentincomeorothercomprehensiveincomeforthecurrentperiod.Inaddition,anyamountrecognisedinothercomprehensiveincomethatmaybereclassifiedtoprofitorloss,inpriorreportingperiodsrelatingtothepreviously-heldequityinterest,andanyotherchangesintheowners’equityunderequityaccounting,aretransferredtoinvestmentincomeintheperiodinwhichtheacquisitionoccurs(seeNoteIII.11(2)(b)).Ifequityinterestsoftheacquireeheldbeforeacquisition-datewereequityinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,othercomprehensiveincomerecognisedshallbemovedtoretainedearningsonacquisition-date.6Consolidatedfinancialstatements
(1)Generalprinciples
ThescopeofconsolidatedfinancialstatementsisbasedoncontrolandtheconsolidatedfinancialstatementscomprisetheCompanyanditssubsidiaries.Controlexistswhentheinvestorhasalloffollowing:powerovertheinvestee;exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.WhenassessingwhethertheGrouphaspower,onlysubstantiverights(heldbytheGroupandotherparties)areconsidered.Thefinancialposition,financialperformanceandcashflowsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.Non-controllinginterestsarepresentedseparatelyintheconsolidatedbalancesheetwithinshareholders’equity.Netprofitorlossattributabletonon-controllingshareholdersispresentedseparatelyintheconsolidatedincomestatementbelowthenetprofitlineitem.Totalcomprehensiveincomeattributabletonon-controllingshareholdersispresentedseparatelyintheconsolidatedincomestatementbelowthetotalcomprehensiveincomelineitem.Whentheamountoflossforthecurrentperiodattributabletothenon-controllingshareholdersofasubsidiaryexceedsthenon-controllingshareholders’shareoftheopeningowners’equityofthesubsidiary,theexcessisstillallocatedagainstthenon-controllinginterests.
WhentheaccountingperiodoraccountingpoliciesofasubsidiaryaredifferentfromthoseoftheCompany,theCompanymakesnecessaryadjustmentstothefinancialstatementsofthesubsidiarybasedontheCompany’sownaccountingperiodoraccountingpolicies.Intra-groupbalancesandtransactions,andanyunrealisedprofitorlossarisingfromintra-grouptransactions,areeliminatedwhenpreparingtheconsolidatedfinancialstatements.Unrealisedlossesresultingfromintra-grouptransactionsareeliminatedinthesamewayasunrealisedgains,unlesstheyrepresentimpairmentlossesthatarerecognisedinthefinancialstatements.
(2)Subsidiariesacquiredthroughabusinesscombination
Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesundercommoncontrol,thefinancialstatementsofthesubsidiaryareincludedintheconsolidatedfinancialstatementsbasedonthecarryingamountsoftheassetsandliabilitiesofthesubsidiaryinthefinancialstatementsoftheultimatecontrollingpartyasifthecombinationhadoccurredatthedatethattheultimatecontrollingpartyfirstobtainedcontrol.Theopeningbalancesandthecomparativefiguresoftheconsolidatedfinancialstatementsarealsorestated.Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesnotundercommoncontrol,theidentifiableassetsandliabilitiesoftheacquiredsubsidiariesareincludedinthescopeofconsolidationfromthedatethatcontrolcommences,basedonthefairvalueofthoseidentifiableassetsandliabilitiesattheacquisitiondate.
(3)Disposalofsubsidiaries
WhentheGrouplosescontroloverasubsidiary,anyresultingdisposalgainsorlossesarerecognisedasinvestmentincomeforthecurrentperiod.Theremainingequityinvestmentisre-measuredatitsfairvalueatthedatewhencontrolislost,anyresultinggainsorlossesarealsorecognisedasinvestmentincomeforthecurrentperiod.WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,thefollowingareconsideredtodeterminewhethertheGroupshouldaccountforthemultipletransactionsasabundledtransaction:
-arrangementsareenteredintoatthesametimeorincontemplationofeachother;-arrangementsworktogethertoachieveanoverallcommercialeffect;-theoccurrenceofonearrangementisdependentontheoccurrenceofatleastoneother
arrangement;-onearrangementconsideredonitsownisnoteconomicallyjustified,butitiseconomically
justifiedwhenconsideredtogetherwithotherarrangements.Ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposalofequityinvestmentinsubsidiarieswherecontrolisretained(seeNoteIII.6(4)).
Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognisedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.
(4)Changesinnon-controllinginterests
WheretheCompanyacquiresanon-controllinginterestfromasubsidiary’snon-controllingshareholdersordisposesofaportionofaninterestinasubsidiarywithoutachangeincontrol,thedifferencebetweentheproportioninterestsofthesubsidiary’snetassetsbeingacquiredordisposedandtheamountoftheconsiderationpaidorreceivedisadjustedtothecapitalreserve(sharepremium)intheconsolidatedbalancesheet,withanyexcessadjustedtoretainedearnings.7Cashandcashequivalents
Cashandcashequivalentscomprisecashonhand,depositsthatcanbereadilywithdrawondemand,andshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandaresubjecttoaninsignificantriskofchangeinvalue.8Foreigncurrencytransactionsandtranslationofforeigncurrencyfinancialstatements
WhentheGroupreceivescapitalinforeigncurrenciesfrominvestors,thecapitalistranslatedtoRenminbiatthespotexchangerateatthedateofthereceipt.Otherforeigncurrencytransactionsare,oninitialrecognition,translatedtoRenminbiatthespotexchangerates.MonetaryitemsdenominatedinforeigncurrenciesaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Theresultingexchangedifferencesaregenerallyrecognisedinprofitorloss,unlesstheyarisefromthere-translationoftheprincipalandinterestofspecificborrowingsfortheacquisitionandconstructionofqualifyingassets(seeNoteIII.15).Non-monetaryitemsthataremeasuredathistoricalcostinforeigncurrenciesaretranslatedtoRenminbiusingtheexchangerateatthetransactiondate.Intranslatingthefinancialstatementsofaforeignoperation,assetsandliabilitiesofforeignoperationaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Equityitems,excludingretainedearningsandthetranslationdifferencesinothercomprehensiveincome,aretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.IncomeandexpensesintheincomestatementaretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.Theresultingtranslationdifferencesarerecognisedinothercomprehensiveincome.Thetranslationdifferencesaccumulatedinothercomprehensiveincomewithrespecttoaforeignoperationaretransferredtoprofitorlossintheperiodwhentheforeignoperationisdisposed.9Financialinstruments
Financialinstrumentsincludecashatbankandonhand,investmentsindebtandequitysecuritiesotherthanthoseclassifiedaslong-termequityinvestments(seeNoteIII.11),receivables,payables,loansandborrowingsandsharecapital.
(1)Recognitionandinitialmeasurementoffinancialassetsandfinancialliabilities
AfinancialassetorfinancialliabilityisrecognisedinthebalancesheetwhentheGroupbecomesapartytothecontractualprovisionsofafinancialinstrument.Afinancialassets(unlessitisatradereceivablewithoutasignificantfinancingcomponent)andfinancialliabilitiesismeasuredinitiallyatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,anyrelateddirectlyattributabletransactioncostsarechargedtoprofitorloss;forothercategoriesoffinancialassetsandfinancialliabilities,anyrelateddirectlyattributabletransactioncostsareincludedintheirinitialcosts.Atradereceivable,withoutsignificantfinancingcomponentorpracticalexpedientappliedforoneyearorlesscontracts,isinitiallymeasuredatthetransactionpriceinaccordancewithNoteIII.22.
(2)Classificationandsubsequentmeasurementoffinancialassets
(a)Classificationoffinancialassets
Theclassificationoffinancialassetsisgenerallybasedonthebusinessmodelinwhichafinancialassetismanagedanditscontractualcashflowcharacteristics.Oninitialrecognition,afinancialassetisclassifiedasmeasuredatamortisedcost,atfairvaluethroughothercomprehensiveincome(“FVOCI”),oratfairvaluethroughprofitorloss(“FVTPL”).FinancialassetsarenotreclassifiedsubsequenttotheirinitialrecognitionunlesstheGroupchangesitsbusinessmodelformanagingfinancialassetsinwhichcaseallaffectedfinancialassetsarereclassifiedonthefirstdayofthefirstreportingperiodfollowingthechangeinthebusinessmodel.AfinancialassetismeasuredatamortisedcostifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveistoholdassetstocollect
contractualcashflows;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolely
paymentsofprincipalandinterestontheprincipalamountoutstanding.AdebtinvestmentismeasuredatFVOCIifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollecting
contractualcashflowsandsellingfinancialassets;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolely
paymentsofprincipalandinterestontheprincipalamountoutstanding.Oninitialrecognitionofanequityinvestmentthatisnotheldfortrading,theGroupmayirrevocablyelecttopresentsubsequentchangesintheinvestment’sfairvalueinothercomprehensiveincome.Thiselectionismadeonaninvestment-by-investmentbasis.Theinstrumentmeetsthedefinitionofequityfromtheperspectiveoftheissuer.
AllfinancialassetsnotclassifiedasmeasuredatamortisedcostorFVOCIasdescribedabovearemeasuredatFVTPL.Oninitialrecognition,theGroupmayirrevocablydesignateafinancialassetthatotherwisemeetstherequirementstobemeasuredatamortisedcostoratFVOCIasatFVTPLifdoingsoeliminatesorsignificantlyreducesanaccountingmismatchthatwouldotherwisearise.ThebusinessmodelreferstohowtheGroupmanagesitsfinancialassetsinordertogeneratecashflows.Thatis,theGroup’sbusinessmodeldetermineswhethercashflowswillresultfromcollectingcontractualcashflows,sellingfinancialassetsorboth.TheGroupdeterminesthebusinessmodelformanagingthefinancialassetsaccordingtothefactsandbasedonthespecificbusinessobjectiveformanagingthefinancialassetsdeterminedbytheGroup’skeymanagementpersonnel.Inassessingwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterest,theGroupconsidersthecontractualtermsoftheinstrument.Forthepurposesofthisassessment,‘principal’isdefinedasthefairvalueofthefinancialassetoninitialrecognition.‘Interest’isdefinedasconsiderationforthetimevalueofmoneyandforthecreditriskassociatedwiththeprincipalamountoutstandingduringaparticularperiodoftimeandforotherbasiclendingrisksandcosts,aswellasaprofitmargin.TheGroupalsoassesseswhetherthefinancialassetcontainsacontractualtermthatcouldchangethetimingoramountofcontractualcashflowssuchthatitwouldnotmeetthiscondition.(b)Subsequentmeasurementoffinancialassets
-FinancialassetsatFVTPLThesefinancialassetsaresubsequentlymeasuredatfairvalue.Netgainsandlosses,includinganyinterestordividendincome,arerecognisedinprofitorlossunlessthefinancialassetsarepartofahedgingrelationship.-FinancialassetsatamortisedcostTheseassetsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Againorlossonafinancialassetthatismeasuredatamortisedcostandisnotpartofahedgingrelationshipshallberecognisedinprofitorlosswhenthefinancialassetisderecognised,reclassified,throughtheamortisationprocessorinordertorecogniseimpairmentgainsorlosses.-DebtinvestmentsatFVOCI
Theseassetsaresubsequentlymeasuredatfairvalue.Interestincomecalculatedusingtheeffectiveinterestmethod,impairmentandforeignexchangegainsandlossesarerecognisedinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoprofitorloss.-EquityinvestmentsatFVOCITheseassetsaresubsequentlymeasuredatfairvalue.Dividendsarerecognisedasincomeinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoretainedearnings.
(3)Classificationandsubsequentmeasurementoffinancialliabilities
FinancialliabilitiesareclassifiedasmeasuredatFVTPLoramortisedcostbytheGroup.-FinancialliabilitiesatFVTPL
AfinancialliabilityisclassifiedasatFVTPLifitisclassifiedasheld-for-trading(includingderivativefinancialliability)oritisdesignatedassuchoninitialrecognition.FinancialliabilitiesatFVTPLaresubsequentlymeasuredatfairvalueandnetgainsandlosses,includinganyinterestexpense,arerecognisedinprofitorloss,unlessthefinancialliabilitiesarepartofahedgingrelationship.-Financialliabilitiesatamortisedcost
Thesefinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
(4)Offsetting
Financialassetsandfinancialliabilitiesaregenerallypresentedseparatelyinthebalancesheet,andarenotoffset.However,afinancialassetandafinancialliabilityareoffsetandthenetamountispresentedinthebalancesheetwhenbothofthefollowingconditionsaresatisfied:
-TheGroupcurrentlyhasalegallyenforceablerighttosetofftherecognisedamounts;-TheGroupintendseithertosettleonanetbasis,ortorealisethefinancialassetandsettle
thefinancialliabilitysimultaneously.
(5)Derecognitionoffinancialassetsandfinancialliabilities
Financialassetisderecognisedwhenoneofthefollowingconditionsismet:
-theGroup’scontractualrightstothecashflowsfromthefinancialassetexpire;-thefinancialassethasbeentransferredandtheGrouptransferssubstantiallyallofthe
risksandrewardsofownershipofthefinancialasset;or;-thefinancialassethasbeentransferred,althoughtheGroupneithertransfersnorretains
substantiallyalloftherisksandrewardsofownershipofthefinancialasset,itdoesnot
retaincontroloverthetransferredasset.Whereatransferofafinancialassetinitsentiretymeetsthecriteriaforderecognition,thedifferencebetweenthetwoamountsbelowisrecognisedinprofitorloss:
-thecarryingamountofthefinancialassettransferredmeasuredatthedateof
derecognition;-thesumoftheconsiderationreceivedfromthetransferand,whenthetransferredfinancial
assetisadebtinvestmentatFVOCI,anycumulativegainorlossthathasbeenrecognised
directlyinothercomprehensiveincomeforthepartderecognised.TheGroupderecognisesafinancialliability(orpartofit)onlywhenitscontractualobligation(orpartofit)isextinguished.
(6)Impairment
TheGrouprecogniseslossallowancesforexpectedcreditloss(ECL)on:
-financialassetsmeasuredatamortisedcost;-financialinvestmentsatfairvaluethroughothercomprehensiveincomeFinancialassetsmeasuredatfairvalue,includingdebtinvestmentsorequitysecuritiesatFVPL,equitysecuritiesdesignatedatFVOCIandderivativefinancialassets,arenotsubjecttotheECLassessment.MeasurementofECLsECLsareaprobability-weightedestimateofcreditlosses.Creditlossesaremeasuredasthepresentvalueofallcashshortfalls(i.e.thedifferencebetweenthecashflowsduetotheentityinaccordancewiththecontractandthecashflowsthattheGroupexpectstoreceive).ThemaximumperiodconsideredwhenestimatingECLsisthemaximumcontractualperiod(includingextensionoptions)overwhichtheGroupisexposedtocreditrisk.LifetimeECLsaretheECLsthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.12-monthECLsaretheportionofECLsthatresultfromdefaulteventsthatarepossiblewithinthe12monthsafterthebalancesheetdate(orashorterperiodiftheexpectedlifeoftheinstrumentislessthan12months).Foraccountsreceivable,lossallowancearealwaysmeasuredatanamountequaltolifetimeECLs.ECLsonthesefinancialassetsareestimatedusingaprovisionmatrixbasedontheGroup’shistoricalcreditlossexperience,adjustedforfactorsthatarespecifictothedebtorsandanassessmentofboththecurrentandforecastgeneraleconomicconditionsatthebalancesheetdate.Forassetsotherthanaccountsreceivablethatmeetoneofthefollowingconditions,lossallowancearemeasuredatanamountequalto12-monthECLs.Forallotherfinancialinstruments,theGrouprecognisesalossallowanceequaltolifetimeECLs:
-Ifthefinancialinstrumentisdeterminedtohavelowcreditriskatthebalancesheetdate;-Ifthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.FinancialinstrumentsthathavelowcreditriskThecreditriskonafinancialinstrumentisconsideredlowifthefinancialinstrumenthasalowriskofdefault,theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandadversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.
SignificantincreasesincreditriskInassessingwhetherthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofdefaultoccurringonthefinancialinstrumentassessedatthebalancesheetdatewiththatassessedatthedateofinitialrecognition.WhendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognitionandwhenestimatingECL,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort,includingforward-lookinginformation.Inparticular,thefollowinginformationistakenintoaccount:
-failuretomakepaymentsofprincipalorinterestontheircontractuallyduedates;-anactualorexpectedsignificantdeteriorationinafinancialinstrument’sexternalorinternal
creditrating(ifavailable);-anactualorexpectedsignificantdeteriorationintheoperatingresultsofthedebtor;and-existingorforecastchangesinthetechnological,market,economicorlegalenvironmentthathaveasignificantadverseeffectonthedebtor’sabilitytomeetitsobligationtotheGroup.Dependingonthenatureofthefinancialinstruments,theassessmentofasignificantincreaseincreditriskisperformedoneitheranindividualbasisoracollectivebasis.Whentheassessmentisperformedonacollectivebasis,thefinancialinstrumentsaregroupedbasedonsharedcreditriskcharacteristics,suchaspastduestatusandcreditriskratings.TheGroupassumesthatthecreditriskonafinancialassethasincreasedsignificantlyifitismorethan30dayspastdue.Credit-impairedfinancialassetsAteachbalancesheetdate,theGroupassesseswhetherfinancialassetscarriedatamortisedcostanddebtinvestmentsatFVOCIarecredit-impaired.Afinancialassetis‘credit-impaired’whenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowsofthefinancialassethaveoccurred.Evidencethatafinancialassetiscredit-impairedincludesthefollowingobservabledata:
-significantfinancialdifficultyoftheborrowerorissuer;-abreachofcontract,suchasadefaultordelinquencyininterestorprincipalpayments;-foreconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficulty,theGroup
havinggrantedtotheborroweraconcessionthatwouldnototherwiseconsider;-itisprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;or-thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancial
difficulties.PresentationofallowanceforECLECLsareremeasuredateachbalancesheetdatetoreflectchangesinthefinancialinstrument’screditrisksinceinitialrecognition.AnychangeintheECLamountisrecognisedasanimpairmentgainorlossinprofitorloss.TheGrouprecognisesanimpairmentgainorlossforallfinancialinstrumentswithacorrespondingadjustmenttotheircarryingamountthroughalossallowanceaccount,exceptfordebtinvestmentsthataremeasuredatFVOCI,forwhichthelossallowanceisrecognisedinothercomprehensiveincome.
Write-offThegrosscarryingamountofafinancialassetiswrittenoff(eitherpartiallyorinfull)totheextentthatthereisnorealisticprospectofrecovery.Awrite-offconstitutesaderecognitionevent.ThisisgenerallythecasewhentheGroupdeterminesthatthedebtordoesnothaveassetsorsourcesofincomethatcouldgeneratesufficientcashflowstorepaytheamountssubjecttothewrite-off.However,financialassetsthatarewrittenoffcouldstillbesubjecttoenforcementactivitiesinordertocomplywiththeGroup’sproceduresforrecoveryofamountsdue.Subsequentrecoveriesofanassetthatwaspreviouslywrittenoffarerecognisedasareversalofimpairmentinprofitorlossintheperiodinwhichtherecoveryoccurs.
(7)Equityinstrument
Theconsiderationreceivedfromtheissuanceofequityinstrumentsnetoftransactioncostsisrecognisedinshareholders’equity.ConsiderationandtransactioncostspaidbytheCompanyforrepurchasingself-issuedequityinstrumentsaredeductedfromshareholders’equity.WhentheCompanyrepurchasesitsownshares,thosesharesaretreatedastreasuryshares.Allexpenditurerelatingtotherepurchaseisrecordedinthecostofthetreasuryshares,withthetransactionrecordingintheshareregister.Treasurysharesareexcludedfromprofitdistributionsandarepresentedasadeductionundershareholders’equityinthebalancesheet.10Inventories
(1)Classificationandcost
Inventoriesincluderawmaterials,workinprogressandfinishedgoods.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpenditureincurredinbringingtheinventoriestotheirpresentlocationandcondition.Inadditiontothepurchasecostofrawmaterials,workinprogressandfinishedgoodsincludedirectlabourcostsandanappropriateallocationofproductionoverheads.AgriculturalproductsharvestedarereportedinaccordancewiththeCASNo.1-Inventories.
(2)Measurementmethodofcostofinventories
Costofinventoriesiscalculatedusingtheweightedaveragemethod.Consumablesincludinglow-valueconsumablesandpackagingmaterialsareamortisedwhentheyareused.Theamortisationchargeisincludedinthecostoftherelatedassetsorrecognisedinprofitorlossforthecurrentperiod.
(3)Basisfordeterminingthenetrealisablevalueandmethodforprovisionforobsolete
inventoriesAtthebalancesheetdate,inventoriesarecarriedatthelowerofcostandnetrealisablevalue.
Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Thenetrealisablevalueofmaterialsheldforuseintheproductionismeasuredbasedonthenetrealisablevalueofthefinishedgoodsinwhichtheywillbeincorporated.Thenetrealisablevalueoftheinventoryheldtosatisfysalesorservicecontractsismeasuredbasedonthecontractprice,totheextentofthequantitiesspecifiedinsalescontracts,andtheexcessportionofinventoriesismeasuredbasedongeneralsellingprices.Anyexcessofthecostoverthenetrealisablevalueofeachitemofinventoriesisrecognisedasaprovisionforimpairment,andisrecognisedinprofitorloss.
(4)Inventorycountsystem
TheGroupmaintainsaperpetualinventorysystem.11Long-termequityinvestments
(1)Investmentcostoflong-termequityinvestments
(a)Long-termequityinvestmentsacquiredthroughabusinesscombination
-Theinitialcostofalong-termequityinvestmentacquiredthroughabusinesscombinationinvolvingentitiesundercommoncontrolistheCompany’sshareofthecarryingamountofthesubsidiary’sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountoftheconsiderationgivenisadjustedtothesharepremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.Foralong-termequityinvestmentinasubsidiaryacquiredthroughabusinesscombinationachievedinstageswhichdonotformabundledtransactionandinvolvingentitiesundercommoncontrol,theCompanydeterminestheinitialcostoftheinvestmentinaccordancewiththeabovepolicies.Thedifferencebetweenthisinitialcostandthesumofthecarryingamountofpreviously-heldinvestmentandtheconsiderationpaidforthesharesnewlyacquiredisadjustedtocapitalpremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.-Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinitialcostcomprisestheaggregateofthefairvalueofassetstransferred,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheCompany,inexchangeforcontroloftheacquiree.Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingentitiesundercommoncontrolandachievedthroughmultipletransactionsinstageswhichdonotformabundledtransaction,theinitialcostcomprisesthecarryingamountofthepreviously-heldequityinvestmentintheacquireeimmediatelybeforetheacquisitiondate,andtheadditionalinvestmentcostattheacquisitiondate.
(b)Long-termequityinvestmentsacquiredotherthanthroughabusinesscombination
-Along-termequityinvestmentacquiredotherthanthroughabusinesscombinationisinitiallyrecognisedattheamountofcashpaidiftheGroupacquirestheinvestmentbycash,oratthefairvalueoftheequitysecuritiesissuedifaninvestmentisacquiredbyissuingequitysecurities.
(2)Subsequentmeasurementoflong-termequityinvestment
(a)Investmentsinsubsidiaries
IntheCompany’sseparatefinancialstatements,long-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodunlesstheinvestmentisclassifiedasheldforsale(SeeNoteIII.28).Exceptforcashdividendsorprofitdistributionsdeclaredbutnotyetdistributedthathavebeenincludedinthepriceorconsiderationpaidinobtainingtheinvestments,theCompanyrecognisesitsshareofthecashdividendsorprofitdistributionsdeclaredbytheinvesteeasinvestmentincomeforthecurrentperiod.Theinvestmentsinsubsidiariesarestatedinthebalancesheetatcostlessaccumulatedimpairmentlosses.Fortheimpairmentoftheinvestmentsinsubsidiaries,refertoNoteIII.20.IntheGroup’sconsolidatedfinancialstatements,subsidiariesareaccountedforinaccordancewiththepoliciesdescribedinNoteIII.6.(b)Investmentinjointventuresandassociates
AjointventureisanarrangementwherebytheGroupandotherpartieshavejointcontrol(seeNoteIII.11(3))andrightstothenetassetsofthearrangement.AssociatedenterprisesrefertoenterprisestowhichtheGroupcanexercisesignificantinfluence(seeNoteIII.11(3)).Along-termequityinvestmentinajointventureoranassociateisaccountedforusingtheequitymethodforsubsequentmeasurement,unlesstheinvestmentisclassifiedasheldforsale(seeNoteIII.28).TheaccountingtreatmentsundertheequitymethodadoptedbytheGroupareasfollows:
-Wheretheinitialcostofalong-termequityinvestmentexceedstheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedatcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedattheinvestor’sshareofthefairvalueoftheinvestee’sidentifiablenetassets,andthedifferenceisrecognisedinprofitorloss.-Aftertheacquisitionoftheinvestment,theGrouprecognisesitsshareoftheinvestee’sprofitorlossandothercomprehensiveincomeasinvestmentincomeorlossesandothercomprehensiveincomerespectively,andadjuststhecarryingamountoftheinvestmentaccordingly.Oncetheinvesteedeclaresanycashdividendsorprofitdistributions,thecarryingamountoftheinvestmentisreducedbytheamountattributabletotheGroup.ChangesintheGroup’sshareoftheinvestee’sowners’equity,otherthanthosearisingfromtheinvestee’snetprofitorloss,othercomprehensiveincomeorprofitdistribution(referredtoas“otherchanges
inowners’equity”),isrecogniseddirectlyintheGroup’sequity,andthecarryingamountoftheinvestmentisadjustedaccordingly.-Incalculatingitsshareoftheinvestee’snetprofitsorlosses,othercomprehensive
incomeandotherchangesinowners’equity,theGrouprecognisesinvestmentincomeandothercomprehensiveincomeaftermakingappropriateadjustmentstoaligntheaccountingpoliciesoraccountingperiodswiththoseoftheGroupbasedonthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition.UnrealisedprofitsandlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedtotheextentoftheGroup’sinterestintheassociatesorjointventures.UnrealisedlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedinthesamewayasunrealisedgainsbutonlytotheextentthatthereisnoimpairment.-TheGroupdiscontinuesrecognisingitsshareoffurtherlossesoftheinvesteeafter
thecarryingamountofthelong-termequityinvestmentandanylong-terminterestthatinsubstanceformspartoftheGroup’snetinvestmentintheassociateisreducedtozero,excepttotheextentthattheGrouphasanobligationtoassumeadditionallosses.Ifthejointventureortheassociatesubsequentlyreportsnetprofits,theGroupresumesrecognisingitsshareofthoseprofitsonlyafteritsshareoftheprofitsequalstheshareoflossesnotrecognised.Fortheimpairmentoftheinvestmentsinjointventuresandassociates,refertoNoteIII.20.
(3)Criteriafordeterminingtheexistenceofjointcontroloveraninvestee
Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivities(activitieswithsignificantimpactonthereturnsofthearrangement)requiretheunanimousconsentofthepartiessharingcontrol.ThefollowingfactorsareusuallyconsideredwhenassessingwhethertheGroupcanexercisejointcontroloveraninvestee:
-Whethernosingleparticipantpartyisinapositiontocontroltheinvestee’srelatedactivitiesunilaterally;-Whetherstrategicdecisionsrelatingtotheinvestee’srelatedactivitiesrequirethe
unanimousconsentofallparticipantpartiesthatsharingofcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofaninvesteebutdoesnothavecontrolorjointcontroloverthosepolicies.
12Investmentproperties
Investmentpropertiesarepropertiesheldeithertoearnrentalincomeorforcapitalappreciationorforboth.Investmentpropertiesareaccountedforusingthecostmodelandstatedinthebalancesheetatcostlessaccumulateddepreciation,amortisationandimpairmentlosses,andadoptsadepreciationoramortisationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights,unlesstheinvestmentpropertyisclassifiedasheldforsale(seeNoteIII.28).Fortheimpairmentoftheinvestmentproperties,refertoNoteIII.20.
Category
| Category | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
13Fixedassets
(1)Recognitionoffixedassets
FixedassetsrepresentthetangibleassetsheldbytheGroupforuseinproductionofgoods,supplyofservices,forrentalorforadministrativepurposeswithusefullivesoveroneaccountingyear.Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relatedtaxes,andanydirectlyattributableexpenditureforbringingtheassettoworkingconditionforitsintendeduse.Thecostofself-constructedassetsismeasuredinaccordancewiththepolicysetoutinNoteIII.14.WherethepartsofanitemoffixedassetshavedifferentusefullivesorprovidebenefitstotheGroupinadifferentpattern,thusnecessitatinguseofdifferentdepreciationratesormethods,eachpartisrecognisedasaseparatefixedasset.AnysubsequentcostsincludingthecostofreplacingpartofanitemoffixedassetsarerecognisedasassetswhenitisprobablethattheeconomicbenefitsassociatedwiththecostswillflowtotheGroup,andthecarryingamountofthereplacedpartisderecognised.Thecostsoftheday-to-daymaintenanceoffixedassetsarerecognisedinprofitorlossasincurred.Fixedassetsarestatedinthebalancesheetatcostlessaccumulateddepreciationandimpairmentlosses.
(2)Depreciationoffixedassets
Thecostofafixedasset,lessitsestimatedresidualvalueandaccumulatedimpairmentlosses,isdepreciatedusingthestraight-linemethodoveritsestimatedusefullife,unlessthefixedassetisclassifiedasheldforsale(seeNoteIII.28).Theestimatedusefullives,residualvalueratesanddepreciationratesofeachclassoffixedassetsareasfollows:
| Class | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
Machineryequipment
| Machineryequipment | 5-30years | 0-5% | 3.2%-20.0% |
| Motorvehicles | 4-12years | 0-5% | 7.9%-25.0% |
Usefullives,estimatedresidualvaluesanddepreciationmethodsarereviewedatleastateachyear-end.
(3)Fortheimpairmentofthefixedassets,refertoNoteIII.20.
(4)Disposaloffixedassets
Thecarryingamountofafixedassetisderecognised:
-whenthefixedassetisholdingfordisposal;or-whennofutureeconomicbenefitisexpectedtobegeneratedfromitsuseordisposal.Gainsorlossesarisingfromtheretirementordisposalofanitemoffixedassetaredeterminedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheitem,andarerecognisedinprofitorlossonthedateofretirementordisposal.Whenanenterprisesellsproductsorby-productsproducedbeforeafixedassetisavailableforitsintendeduse,theproceedsandrelatedcostareaccountedforinaccordancewithCAS14–RevenueandCAS1–Inventoriesrespectively,andrecognisedinprofitorlossforthecurrentperiod.14Constructioninprogress
Thecostofself-constructedassetsincludesthecostofmaterials,directlabour,capitalisedborrowingcosts(seeNoteIII.15),andanyothercostsdirectlyattributabletobringingtheassettoworkingconditionforitsintendeduse.Aself-constructedassetisclassifiedasconstructioninprogressandtransferredtofixedassetwhenitisreadyforitsintendeduse.Nodepreciationisprovidedagainstconstructioninprogress.Constructioninprogressisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.20).15Borrowingcosts
Borrowingcostsincurreddirectlyattributabletotheacquisition,andconstructionorproductionofaqualifyingassetarecapitalisedaspartofthecostoftheasset.Otherborrowingcostsarerecognisedasfinancialexpenseswhenincurred.Duringthecapitalisationperiod,theamountofinterest(includingamortisationofanydiscountorpremiumonborrowing)tobecapitalisedineachaccountingperiodisdeterminedasfollows:
-Wherefundsareborrowedspecificallyfortheacquisitionandconstructionorproductionofaqualifyingasset,theamountofinteresttobecapitalisedistheinterestexpensecalculatedusingeffectiveinterestratesduringtheperiodlessanyinterestincomeearnedfromdepositingtheborrowedfundsoranyinvestmentincomeonthetemporaryinvestmentofthosefundsbeforebeingusedontheasset.
-TotheextentthattheGroupborrowsfundsgenerallyandusesthemfortheacquisitionand
constructionorproductionofaqualifyingasset,theamountofborrowingcostseligibleforcapitalisationisdeterminedbyapplyingacapitalisationratetotheweightedaverageoftheexcessamountsofcumulativeexpenditureontheassetovertheaboveamountsofspecificborrowings.Thecapitalisationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Theeffectiveinterestrateisdeterminedastheratethatexactlydiscountsestimatedfuturecashflowthroughtheexpectedlifeoftheborrowingor,whenappropriate,ashorterperiodtotheinitiallyrecognisedamountoftheborrowings.Duringthecapitalisationperiod,exchangedifferencesrelatedtotheprincipalandinterestonaspecific-purposeborrowingdenominatedinforeigncurrencyarecapitalisedaspartofthecostofthequalifyingasset.Theexchangedifferencesrelatedtotheprincipalandinterestonforeigncurrencyborrowingsotherthanaspecific-purposeborrowingarerecognisedasafinancialexpensewhenincurred.Thecapitalisationperiodistheperiodfromthedateofcommencementofcapitalisationofborrowingcoststothedateofcessationofcapitalisation,excludinganyperiodoverwhichcapitalisationissuspended.Capitalisationofborrowingcostscommenceswhenexpenditurefortheassetisbeingincurred,borrowingcostsarebeingincurredandactivitiesofacquisition,constructionorproductionthatarenecessarytopreparetheassetforitsintendeduseareinprogress,andceaseswhentheassetsbecomereadyfortheirintendeduse.Capitalisationofborrowingcostsshouldceasewhenthequalifyingassetbeingconstructedorproducedhasreacheditsexpectedusableorsaleablecondition.Capitalisationofborrowingcostsissuspendedwhentheacquisition,constructionorproductionactivitiesareinterruptedabnormallyforaperiodofmorethanthreemonths.
16.Biologicalassets
TheGroup'sbiologicalassetsarebearerbiologicalassets.Bearerbiologicalassetsarethosethatareheldforthepurposesofproducingagriculturalproduce,renderingofservicesorrental.BearerbiologicalassetsintheGrouparevines.Bearerbiologicalassetsareinitiallymeasuredatcost.Thecostofself-grownorself-bredbearerbiologicalassetsrepresentsthenecessarydirectlyattributableexpenditureincurredbeforesatisfyingtheexpectedproductionandoperatingpurpose,includingcapitalisedborrowingcosts.Bearerbiologicalassets,afterreachingtheexpectedproductionandoperatingpurpose,aredepreciatedusingthestraight-linemethodoveritsestimatedusefullife.Theestimatedusefullives,estimatednetresidualvalueratesanddepreciationratesofbearerbiologicalassetsareasfollows:
Category
| Category | Estimatedusefullife(years) | Estimatednetresidualvaluerate | Depreciationrate(%) |
| Vines | 20years | 0% | 5.0% |
TheGroupevaluatestheusefullifeandexpectednetsalvagevaluebyconsideringthenormalproducinglifeofthebearerbiologicalassets.
Usefullives,estimatedresidualvaluesanddepreciationmethodsofbearerbiologicalassetsarereviewedatleastateachyear-end.Anychangesshouldbetreatedaschangesinaccountingestimates.Forabearerbiologicalassetthathasbeensold,damaged,deadordestroyed,anydifferencebetweenthedisposalproceedsandthecarryingamountoftheassetshouldberecognisedinprofitorlossfortheperiodinwhichitarises.17Intangibleassets
Intangibleassetsarestatedinthebalancesheetatcostlessaccumulatedamortization(wheretheestimatedusefullifeisfinite)andimpairmentlosses(seeNoteIII.20).Foranintangibleassetwithfiniteusefullife,itscostestimatedlessresidualvalueandaccumulatedimpairmentlossesisamortisedonthestraight-linemethodoveritsestimatedusefullife,unlesstheintangibleassetisclassifiedasheldforsale(seeNoteIII.28).Therespectiveamortisationperiodsforintangibleassetsareasfollows:
Item
| Item | Amortisationperiod(years) |
| Landuserights | 40-50years |
| Softwarelicenses | 5-10years |
| Trademarks | 10years |
Usefullivesandamortisationmethodsofintangibleassetwithfiniteusefullifearereviewedatleastateachyear-end.AnintangibleassetisregardedashavinganindefiniteusefullifeandisnotamortisedwhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Atthebalancesheetdate,theGrouphadintangibleassetswithinfiniteusefullivesincludingthelanduserightsandtrademarks.LanduserightswithinfiniteusefullivesarepermanentlanduserightswithpermanentownershipheldbytheGroupundertherelevantChileandAustralianlawsarisingfromtheGroup’sacquisitionofVi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSPA.(collectivelyreferredtoasthe"ChileIndomitaWineGroup"),andtheacquisitionofKilikanoonEstatePtyLtd.(hereinafterreferredtoasthe"AustraliaKilikanoonEstate"),thereforetherewasnoamortisation.TherighttousetrademarkreferstothetrademarkheldbytheGrouparisingfromtheacquisitionoftheChileIndomitaWineGroupandtheAustraliaKilikanoonEstatewithinfiniteusefullives.Thevaluationoftrademarkwasbasedonthetrendsinthemarketandcompetitiveenvironment,productcycle,andmanaginglong-termdevelopmentstrategy.ThosebasisindicatedthetrademarkwillprovidenetcashflowstotheGroupwithinanuncertainperiod.TheusefullifeisindefiniteasitwashardtopredicttheperiodthatthetrademarkwouldbringeconomicbenefitstotheGroup.18Goodwill
Theinitialcostofgoodwillrepresentstheexcessofcostofacquisitionovertheacquirer’sinterestinthefairvalueoftheidentifiablenetassetsoftheacquireeunderabusinesscombinationnotinvolvingentitiesundercommoncontrol.Goodwillisnotamortisedandisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.20).Ondisposalofanassetgrouporasetofassetgroups,anyattributablegoodwilliswrittenoffandincludedinthecalculationoftheprofitorlossondisposal.
19Long-termdeferredexpenses
Long-termdeferredexpensesareamortisedusingastraight-linemethodwithinthebenefitperiod.Therespectiveamortisationperiodsforsuchexpensesareasfollows:
Item
| Item | Amortisationperiod |
| Landrequisitionfee | 50years |
| Greeningfee | 5-20years |
| Leaseholdimprovement | 3-5years |
| Others | 3years |
20Impairmentofassetsotherthaninventoriesandfinancialassets
Thecarryingamountsofthefollowingassetsarereviewedateachbalancesheetdatebasedoninternalandexternalsourcesofinformationtodeterminewhetherthereisanyindicationofimpairment:
-fixedassets-constructioninprogress-right-of-useassets-intangibleassets-bearerbiologicalassets-investmentpropertiesmeasuredusingacostmodel-long-termequityinvestments-goodwill-long-termdeferredexpenses,etc.Ifanyindicationexists,therecoverableamountoftheassetisestimated.Inaddition,theGroupestimatestherecoverableamountsofgoodwillandintangibleassetswithinfiniteusefullivesateachyear-end,irrespectiveofwhetherthereisanyindicationofimpairment.Goodwillisallocatedtoeachassetgroup,orsetofassetgroups,thatisexpectedtobenefitfromthesynergiesofthecombinationforthepurposeofimpairmenttesting.Therecoverableamountofanasset(orassetgroup,setofassetgroups)isthehigherofitsfairvalue(seeNoteIII.21)lesscoststosellanditspresentvalueofexpectedfuturecashflows.Anassetgroupiscomposedofassetsdirectlyrelatedtocash-generationandisthesmallestidentifiablegroupofassetsthatgeneratescashinflowsthatarelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Thepresentvalueofexpectedfuturecashflowsofanassetisdeterminedbydiscountingthefuturecashflows,estimatedtobederivedfromcontinuinguseoftheassetandfromitsultimatedisposal,totheirpresentvalueusinganappropriatepre-taxdiscountrate.Animpairmentlossisrecognisedinprofitorlosswhentherecoverableamountofanassetislessthanitscarryingamount.Aprovisionforimpairmentoftheassetisrecognisedaccordingly.Impairmentlossesrelatedtoanassetgrouporasetofassetgroupsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheassetgrouporsetofassetgroups,andthentoreducethecarryingamountoftheotherassetsintheassetgrouporsetofassetgroupsonaproratabasis.However,suchallocationwouldnotreducethecarryingamountofanassetbelowthehighestofitsfairvaluelesscoststosell(ifmeasurable),itspresentvalueofexpectedfuturecashflows(ifdeterminable)andzero.
Onceanimpairmentlossisrecognised,itisnotreversedinasubsequentperiod.21Fairvaluemeasurement
Unlessotherwisespecified,theGroupmeasuresfairvalueasfollows:
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinan
orderlytransactionbetweenmarketparticipantsatthemeasurementdate.
Whenmeasuringfairvalue,theGrouptakesintoaccountthecharacteristicsoftheparticular
assetorliability(includingtheconditionandlocationoftheassetandrestrictions,ifany,on
thesaleoruseoftheasset)thatmarketparticipantswouldconsiderwhenpricingtheassetor
liabilityatthemeasurementdate,andusesvaluationtechniquesthatareappropriateinthe
circumstancesandforwhichsufficientdataandotherinformationareavailabletomeasure
fairvalue.Valuationtechniquesmainlyincludethemarketapproach,theincomeapproach
andthecostapproach.22Revenuerecognition
RevenueisthegrossinflowofeconomicbenefitsarisinginthecourseoftheGroup’sordinary
activitieswhentheinflowsresultinincreaseinshareholders’equity,otherthanincrease
relatingtocontributionsfromshareholders.
RevenueisrecognisedwhentheGroupsatisfiestheperformanceobligationinthecontractby
transferringthecontroloverrelevantgoodsorservicestothecustomers.
Whereacontracthastwoormoreperformanceobligations,theGroupdeterminesthe
stand-alonesellingpriceatcontractinceptionofthedistinctgoodorserviceunderlyingeach
performanceobligationinthecontractandallocatesthetransactionpriceinproportionto
thosestand-alonesellingprices.TheGrouprecognisesasrevenuetheamountofthe
transactionpricethatisallocatedtoeachperformanceobligation.Thestand-aloneselling
priceisthepriceatwhichtheGroupwouldsellapromisedgoodorserviceseparatelytoa
customer.Ifastand-alonesellingpriceisnotdirectlyobservable,theGroupconsidersall
informationthatisreasonablyavailabletotheentity,maximisestheuseofobservableinputs
toestimatethestand-alonesellingprice.
Forthecontractwithawarranty,theGroupanalysesthenatureofthewarrantyprovided,ifthe
warrantyprovidesthecustomerwithadistinctserviceinadditiontotheassurancethatthe
productcomplieswithagreed-uponspecifications,theGrouprecognisesforthepromised
warrantyasaperformanceobligation.Otherwise,theGroupaccountsforthewarrantyin
accordancewiththerequirementsofCASNo.13–Contingencies.
ThetransactionpriceistheamountofconsiderationtowhichtheGroupexpectstobeentitled
inexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamounts
collectedonbehalfofthirdparties.TheGrouprecognisesthetransactionpriceonlytothe
extentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenue
recognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationis
subsequentlyresolved.Wherethecontractcontainsasignificantfinancingcomponent,the
Grouprecognisesthetransactionpriceatanamountthatreflectsthepricethatacustomer
wouldhavepaidforthepromisedgoodsorservicesifthecustomerhadpaidcashforthose
goodsorserviceswhen(oras)theytransfertothecustomer.Thedifferencebetweenthe
amountofpromisedconsiderationandthecashsellingpriceisamortisedusinganeffective
interestmethodoverthecontractterm.TheGroupdoesnotadjusttheconsiderationforany
effectsofasignificantfinancingcomponentifitexpects,atcontractinception,thattheperiod
betweenwhentheGrouptransfersapromisedgoodorservicetoacustomerandwhenthecustomerpaysforthatgoodorservicewillbeoneyearorless.TheGroupsatisfiesaperformanceobligationovertimeifoneofthefollowingcriteriaismet;orotherwise,aperformanceobligationissatisfiedatapointintime:
-thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheGroup’s
performanceastheGroupperforms;-thecustomercancontroltheassetcreatedorenhancedduringtheGroup’sperformance;
or-theGroup’sperformancedoesnotcreateanassetwithanalternativeusetoitandthe
Grouphasanenforceablerighttopaymentforperformancecompletedtodate.Forperformanceobligationsatisfiedovertime,theGrouprecognisesrevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation.Whentheoutcomeofthatperformanceobligationcannotbemeasuredreasonably,buttheGroupexpectstorecoverthecostsincurredinsatisfyingtheperformanceobligation,theGrouprecognisesrevenueonlytotheextentofthecostsincurreduntilsuchtimethatitcanreasonablymeasuretheoutcomeoftheperformanceobligation.Forperformanceobligationsatisfiedatapointintime,theGrouprecognisesrevenueatthepointintimeatwhichthecustomerobtainscontrolofrelevantgoodsorservices.Todeterminewhetheracustomerhasobtainedcontrolofgoodsorservices,theGroupconsidersthefollowingindicators:
-theGrouphasapresentrighttopaymentforthegoodsorservices;-theGrouphastransferredphysicalpossessionofthegoodstothecustomer;-theGrouphastransferredthelegaltitleofthegoodsorthesignificantrisksandrewardsof
ownershipofthegoodstothecustomer;and-thecustomerhasacceptedthegoodsorservices.Forthesaleofaproductwitharightofreturn,theGrouprecognisesrevenuewhentheGroupobtainscontrolofthatproduct,intheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortheproducttransferred(i.e.excludingtheamountofwhichexpectedtobereturned),andrecognisesarefundliabilityfortheproductsexpectedtobereturned.Meanwhile,anassetisrecognisedintheamountofcarryingamountoftheproductexpectedtobereturnedlessanyexpectedcoststorecoverthoseproducts(includingpotentialdecreasesinthevalueofreturnedproducts),andcarryforwardtocostintheamountofcarryingamountofthetransferredproductslesstheabovecosts.Attheendofeachreportingperiod,theGroupupdatesitsassessmentoffuturesalesreturn.Ifthereisanychange,itisaccountedforasachangeinaccountingestimate.AcontractassetistheGroup’srighttoconsiderationinexchangeforgoodsorservicesthatithastransferredtoacustomerwhenthatrightisconditionalonsomethingotherthanthepassageoftime.TheGrouprecogniseslossallowancesforexpectedcreditlossoncontractassets(seeNoteIII.9(6)).AccountsreceivableistheGroup’srighttoconsiderationthatisunconditional(onlythepassageoftimeisrequired).AcontractliabilityistheGroup’sobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer.ThefollowingisthedescriptionofaccountingpoliciesregardingrevenuefromtheGroup’sprincipalactivities:
TheGroup'ssalesrevenueismainlyderivedfromdealersales.RevenueisrecognisedwhentheGrouptransferscontroloftherelatedproductstothecustomer.Basedonthebusinesscontract,theGrouprecognisedthesalesrevenueofthesetransferswhentheproductisconfirmedandsignedforacceptancebythecustomers.23Contractcosts
Contractcostsareeithertheincrementalcostsofobtainingacontractwithacustomerorthecoststofulfilacontractwithacustomer.IncrementalcostsofobtainingacontractarethosecoststhattheGroupincurstoobtainacontractwithacustomerthatitwouldnothaveincurredifthecontracthadnotbeenobtainede.g.anincrementalsalescommission.TheGrouprecognisesasanassettheincrementalcostsofobtainingacontractwithacustomerifitexpectstorecoverthosecosts.Othercostsofobtainingacontractareexpensedwhenincurred.Ifthecoststofulfilacontractwithacustomerarenotwithinthescopeofinventoriesorotheraccountingstandards,theGrouprecognisesanassetfromthecostsincurredtofulfilacontractonlyifthosecostsmeetallofthefollowingcriteria:
-thecostsrelatedirectlytoanexistingcontractortoaspecificallyidentifiableanticipated
contract,includingdirectlabour,directmaterials,allocationsofoverheads(orsimilarcosts),coststhatareexplicitlychargeabletothecustomerandothercoststhatareincurredonlybecausetheGroupenteredintothecontract-thecostsgenerateorenhanceresourcesoftheGroupthatwillbeusedinsatisfying(orin
continuingtosatisfy)performanceobligationsinthefuture;and-thecostsareexpectedtoberecovered.Assetsrecognisedfortheincrementalcostsofobtainingacontractandassetsrecognisedforthecoststofulfilacontract(the“assetsrelatedtocontractcosts”)areamortisedonasystematicbasisthatisconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetsrelateandrecognisedinprofitorlossforthecurrentperiod.TheGrouprecognisestheincrementalcostsofobtainingacontractasanexpensewhenincurrediftheamortisationperiodoftheassetthattheentityotherwisewouldhaverecognisedisoneyearorless.TheGrouprecognisesanimpairmentlossinprofitorlosstotheextentthatthecarryingamountofanassetrelatedtocontractcostsexceeds:
-remainingamountofconsiderationthattheGroupexpectstoreceiveinexchangeforthe
goodsorservicestowhichtheassetrelates;less-thecoststhatrelatedirectlytoprovidingthosegoodsorservicesthathavenotyetbeen
recognisedasexpenses.24Employeebenefits
(1)Short-termemployeebenefits
Employeewagesorsalaries,bonuses,socialsecuritycontributionssuchasmedicalinsurance,workinjuryinsurance,maternityinsuranceandhousingfund,measuredattheamountincurredoraccuredattheapplicablebenchmarksandrates,arerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
(2)Post-employmentbenefits–definedcontributionplans
PursuanttotherelevantlawsandregulationsofthePeople’sRepublicofChina,theGroupparticipatedinadefinedcontributionbasicpensioninsuranceplaninthesocialinsurancesystemestablishedandmanagedbygovernmentorganisations.TheGroupmakescontributionstobasicpensioninsuranceplansbasedontheapplicablebenchmarksandratesstipulatedbythegovernment.Basicpensioninsurancecontributionspayablearerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
(3)Terminationbenefits
WhentheGroupterminatestheemploymentwithemployeesbeforetheemploymentcontractsexpire,orprovidescompensationunderanoffertoencourageemployeestoacceptvoluntaryredundancy,aprovisionisrecognisedwithacorrespondingexpenseinprofitorlossattheearlierofthefollowingdates:
-WhentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemployeeterminationplanoracurtailmentproposal;-WhentheGrouphasaformaldetailedrestructuringplaninvolvingthepaymentof
terminationbenefitsandhasraisedavalidexpectationinthoseaffectedthatitwillcarryouttherestructuringbystartingtoimplementthatplanorannouncingitsmainfeaturestothoseaffectedbyit.25Governmentgrants
Governmentgrantsarenon-reciprocaltransfersofmonetaryornon-monetaryassetsfromthegovernmenttotheGroupexceptforcapitalcontributionsfromthegovernmentinthecapacityasaninvestorintheGroup.AgovernmentgrantisrecognisedwhenthereisreasonableassurancethatthegrantwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtothegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasuredatfairvalue.GovernmentgrantsrelatedtoassetsaregrantswhoseprimaryconditionisthattheGroupqualifyingforthemshouldpurchase,constructorotherwiseacquirelong-termassets.Governmentgrantsrelatedtoincomearegrantsotherthanthoserelatedtoassets.Agovernmentgrantrelatedtoanassetisrecognisedasdeferredincomeandamortisedovertheusefullifeoftherelatedassetonareasonableandsystematicmannerasotherincomeornon-operatingincome.AgrantthatcompensatestheCompanyforexpensesorlossestobeincurredinthefutureisrecognisedasdeferredincome,andincludedinotherincomeornon-operatingincomeintheperiodsinwhichtheexpensesorlossesarerecognised.Orincludedinotherincomeornon-operatingincomedirectly.26Incometax
Currenttaxanddeferredtaxarerecognisedinprofitorlossexcepttotheextentthattheyrelatetoabusinesscombinationoritemsrecogniseddirectlyinequity(includingothercomprehensiveincome).
Currenttaxistheexpectedtaxpayablecalculatedattheapplicabletaxrateontaxableincomefortheyear,plusanyadjustmenttotaxpayableinrespectofpreviousyears.Atthebalancesheetdate,currenttaxassetsandliabilitiesareoffsetonlyiftheGrouphasalegallyenforceablerighttosetthemoffandalsointendseithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.Deferredtaxassetsanddeferredtaxliabilitiesarisefromdeductibleandtaxabletemporarydifferencesrespectively,beingthedifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheirtaxbases,whichincludethedeductiblelossesandtaxcreditscarriedforwardtosubsequentperiods.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilised.Deferredtaxisnotrecognisedforthetemporarydifferencesarisingfromtheinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusinesscombinationandthataffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Deferredtaxisnotrecognisedfortaxabletemporarydifferencesarisingfromtheinitialrecognitionofgoodwill.Atthebalancesheetdate,deferredtaxismeasuredbasedonthetaxconsequencesthatwouldfollowfromtheexpectedmannerofrecoveryorsettlementofthecarryingamountsoftheassetsandliabilities,usingtaxratesenactedatthebalancesheetdatethatareexpectedtobeappliedintheperiodwhentheassetisrecoveredortheliabilityissettled.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate,andisreducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitswillbeutilised.Suchreductionisreversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitswillbeavailable.Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesareoffsetifallofthefollowingconditionsaremet:
-thetaxableentityhasalegallyenforceablerighttooffsetcurrenttaxliabilitiesandcurrenttaxassets;-theyrelatetoincometaxesleviedbythesametaxauthorityoneither:
-thesametaxableentity;or-differenttaxableentitieswhichintendeithertosettlethecurrenttaxliabilitiesandcurrenttaxassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesordeferredtaxassetsareexpectedtobesettledorrecovered.27Leases
Acontractisleaseifthelessorconveystherighttocontroltheuseofanidentifiedassettolesseeforaperiodoftimeinexchangeforconsideration.Atinceptionofacontract,theGroupassesseswhetheracontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedasset,theGroupassesseswhether:
-thecontractinvolvestheuseofanidentifiedasset.Anidentifiedassetmaybespecified
explicitlyorimplicitlyspeiciedinacontratandshouldbephysicallydistinct,orcapacityportionorotherportionofanassetthatisnotphysicallydistinctbutitrepresentssubstantiallyallofthecapacityoftheassetandtherebyprovidesthecustomerwiththerighttoobtainsubstantiallyalloftheecomonicbenefitsfromtheuseoftheasset.Ifthesupplierhasasubstantivesubstitutionrightthroughouttheperiodofuse,thentheassetisnotidentified;-thelesseehastherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseofthe
assetthroughouttheperiodofuse;-thelesseehastherighttodirecttheuseoftheasset.Foracontractthatcontainsmoreseparateleasecomponets,thelesseeandthelessorseparateleasecomponentsandaccountforeachleasecomponentasaleaseseparately.Foracontractthatcontainsleaseandnon-leasecomponents,thelesseeandthelessorseparateleasecomponentsfromnon-leasecomponents.Foracontractthatcontainsleaseandnon-leasecomponents,thelesseeallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentandtheaggregatestand-alonepriceofthenon-leasecomponents.ThelessorallocatestheconsiderationinthecontractinaccordancewiththeaccountingpolicyinNoteIII.22.
(1)Asalessee
TheGrouprecognisesaright-of-useassetandaleaseliabilityattheleasecommencementdate.Theright-of-useassetisinitiallymeasuredatcost,whichcomprisestheinitialamountoftheleaseliability,anyleasepaymentsmadeatorbeforethecommencementdate(lessanyleaseincentivesreceived),anyinitialdirectcostsincurredandanestimateofcoststodismantleandremovetheunderlyingassetortorestorethesiteonwhichitislocatedorrestoretheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.Theright-of-useassetisdepreciatedusingthestraight-linemethod.Ifthelesseeisreasonablycertaintoexerciseapurchaseoptionbytheendoftheleaseterm,theright-of-useassetisdepreciatedovertheremainingusefullivesoftheunderlyingasset.Otherwise,theright-of-useassetisdepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetortheendoftheleaseterm.Impairmentlossesofright-of-useassetsareaccountedforinaccordancewiththeaccountingpolicydescribedinNoteIII.20.Theleaseliabilityisinitiallymeasuredatthepresentvalueoftheleasepaymentsthatarenotpaidatthecommencementdate,discountedusingtheinterestrateimplicitintheleaseor,ifthatratecannotbereadilydetermined,theGroup’sincrementalborrowingrate.Aconstantperiodicrateisusedtocalculatetheinterestontheleaseliabilityineachperiodduringtheleasetermwithacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.Variableleasepaymentsnotincludedinthemeasurementoftheleaseliabilityischargedtoprofitorlossorincludedinthecostofassetswhereappropriateasincurred.Underthefollowingcircumstancesafterthecommencementdate,theGroupremeasuresleaseliabilitiesbasedonthepresentvalueofrevisedleasepayments:
-thereisachangeintheamountsexpectedtobepayableunderaresidualvalueguarantee;-thereisachangeinfutureleasepaymentsresultingfromachangeinanindexorarate
usedtodeterminethosepayments;
-thereisachangeintheassessmentofwhethertheGroupwillexerciseapurchase,
extensionorterminationoption,orthereisachangeintheexerciseoftheextensionorterminationoption.Whentheleaseliabilityisremeasured,acorrespondingadjustmentismadetothecarryingamountoftheright-of-useasset,orisrecordedinprofitorlossifthecarryingamountoftheright-of-useassethasbeenreducedtozero.TheGrouphaselectednottorecogniseright-of-useassetsandleaseliabilitiesforshort-termleasesthathavealeasetermof12monthsorlessandleasesoflow-valueassets.TheGrouprecognisestheleasepaymentsassociatedwiththeseleasesinprofitorlossorasthecostoftheassetswhereappropriateusingthestraight-linemethodovertheleaseterm.
(2)Asalessor
TheGroupdeterminesatleaseinceptionwhethereachleaseisafinanceleaseoranoperatinglease.Aleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingassetirrespectiveofwhetherthelegaltitletotheassetiseventuallytransferred.Anoperatingleaseisaleaseotherthanafinancelease.WhentheGroupisasub-lessor,itassessestheleaseclassificationofasub-leasewithreferencetotheright-of-useassetarisingfromtheheadlease,notwithreferencetotheunderlyingasset.Ifaheadleaseisashort-termleasetowhichtheGroupappliespracticalexpedientdescribedabove,thenitclassifiesthesub-leaseasanoperatinglease.Underafinancelease,atthecommencementdate,theGrouprecognisesthefinanceleasereceivableandderecognisesthefinanceleaseasset.Thefinanceleasereceivableisinitiallymeasuredatanamountequaltothenetinvestmentinthelease.Thenetinvestmentintheleaseismeasuredattheaggregateoftheunguaranteedresidualvalueandthepresentvalueoftheleasereceivablethatarenotreceivedatthecommencementdate,discountedusingtheinterestrateimplicitinthelease.TheGrouprecognisesfinanceincomeovertheleaseterm,basedonapatternreflectingaconstantperiodicrateofreturn.ThederecognitionandimpairmentofthefinanceleasereceivablearerecognisedinaccordancewiththeaccountingpolicyinNoteIII.9.Variableleasepaymentsnotincludedinthemeasurementofnetinvestmentintheleasearerecognisedasincomeastheyareearned.Leasereceiptsfromoperatingleasesisrecognisedasincomeusingthestraight-linemethodovertheleaseterm.Theinitialdirectcostsincurredinrespectoftheoperatingleaseareinitiallycapitalisedandsubsequentlyamortisedinprofitorlossovertheleasetermonthesamebasisastheleaseincome.Variableleasepaymentsnotincludedinleasereceiptsarerecognisedasincomeastheyareearned.28Assetsheldforsale
TheGroupclassifiedanon-currentassetordisposalgroupasheldforsalewhenthecarryingamountofanon-currentassetordisposalgroupwillberecoveredthroughasaletransactionratherthanthroughcontinuinguse.Adisposalgroupreferstoagroupofassetstobedisposedof,bysaleorotherwise,togetherasawholeinasingletransactionandliabilitiesdirectlyassociatedwiththoseassetsthatwillbetransferredinthetransaction.
Anon-currentassetordisposalgroupisclassifiedasheldforsalewhenallthefollowingcriteriaaremet:
-Accordingtothecustomarypracticesofsellingsuchassetordisposalgroupinsimilartransactions,thenon-currentassetordisposalgroupmustbeavailableforimmediatesaleintheirpresentconditionsubjecttotermsthatareusualandcustomaryforsalesofsuchassetsordisposalgroups;-Itssaleishighlyprobable,thatis,theGrouphasmadearesolutiononasaleplanandhasobtainedafirmpurchasecommitment.Thesaleistobecompletedwithinoneyear.Non-currentassetsordisposalgroupsheldforsalearestatedatthelowerofcarryingamountandfairvalue(seeNoteIII.21)lesscoststosell(exceptfinancialassets(seeNoteIII.9),deferredtaxassets(seeNoteIII.26)andinvestmentpropertiessubsequentmeasuredatfairvalue(seeNoteIII.12)initiallyandsubsequently.Anyexcessofthecarryingamountoverthefairvalue(seeNoteIII.21)lesscoststosellisrecognisedasanimpairmentlossinprofitorloss.29Profitdistributions
Dividendsorprofitdistributionsproposedintheprofitappropriationplan,whichwillbeapprovedafterthebalancesheetdate,arenotrecognisedasaliabilityatthebalancesheetdatebutaredisclosedinthenotesseparately.30Relatedparties
Ifapartyhasthepowertocontrol,jointlycontrolorexercisesignificantinfluenceoveranotherparty,orviceversa,orwheretwoormorepartiesaresubjecttocommoncontrolorjointcontrolfromanotherparty,theyareconsideredtoberelatedparties.Relatedpartiesmaybeindividualsorenterprises.EnterpriseswithwhichtheCompanyisundercommoncontrolonlyfromtheStateandthathavenootherrelatedpartyrelationshipsarenotregardedasrelatedparties.Inadditiontotherelatedpartiesstatedabove,theCompanydeterminesrelatedpartiesbasedonthedisclosurerequirementsofAdministrativeProceduresontheInformationDisclosuresofListedCompaniesissuedbytheCSRC.31Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparklingwineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup'sinternalorganisationstructure,managementrequirementsandinternalreportingsystem,theGroup'soperationisdividedintofiveparts:China,Spain,France,ChileandAustralia.Themanagementperiodicallyevaluatessegmentresults,inordertoallocateresourcesandevaluateperformances.In2022,over82%ofrevenue,morethan91%ofprofitandover91%ofnon-currentassetsderivedfromChina/arelocatedinChina.ThereforetheGroupdoesnotneedtodiscloseadditionalsegmentreportinformation.32Significantaccountingestimatesandjudgements
Thepreparationofthefinancialstatementsrequiresmanagementtomakeestimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Estimatesaswellasunderlyingassumptionsanduncertaintiesinvolvedarereviewedonan
ongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.SignificantaccountingestimatesseeNotesV.3711and16.33Changesinsignificantaccountingpoliciesandaccountingestimates
(1)DescriptionandreasonsofchangesinaccountingpoliciesIn2022,theGrouphasadoptedthefollowingnewlyrevisedaccountingstandardsandimplementationguidanceandillustrativeexamplesissuedbytheMOF:
-“InterpretationNo.15oftheAccountingStandardsforBusinessEnterprises”(No.35
[2021]oftheMinistryofFinance)(“InterpretationNo.15”)“Accountingtreatmentforthesaleofproductsorby-productsproducedbytheenterprisebeforethefixedassetsreachtheintendedusablestateorduringtheresearchanddevelopmentprocess”;-“Determiningwhetheracontractisonerous”inCASBulletinNo.15;--“Accountingfortheincometaxconsequencesofdividendsonfinancialinstrumentsclassifiedasequityinstrumentsbytheissuer”inCASBulletinNo.16(Caikuai[2022]No.31);and-“Accountingforthemodificationofashare-basedpaymenttransactionthatchangesthe
classificationofthetransactionfromcash-settledtoequity-settled”inCASBulletinNo.16.-
-Theadoptionoftheaboveregulationsdoesnothavesignificanteffectonthe
financialpositionandfinancialperformanceoftheGroup.-IV.Taxation1Maintypesoftaxesandcorrespondingtaxrates
Typeoftax
| Typeoftax | Taxationbasis | Taxrate |
| Value-addedtax(VAT) | OutputVATiscalculatedonproductsalesandtaxableservicesrevenue.ThebasisforVATpayableistodeductinputVATfromtheoutputVATfortheperiod | 13%,9%,6%(China),20%(France),21%(Spain),19%(Chile)and10%(Australia) |
| Consumptiontax | Basedontaxablerevenue | 10%oftheprice,20%ofthepriceandRMB1,000eachton(China) |
| Urbanmaintenanceandconstructiontax | BasedonVATpaid | 7%(China) |
| Corporateincometax | Basedontaxableprofits | 25%(China),25%(France,2022),26.5%(France,2021),28%(Spain),27%(Chile),30%(Australia) |
OtherthantaxincentivesstatedinNoteIV.2,applicabletaxratesoftheGroupin2022and2021areallstatedasabove.2Taxpreferentialtreatments
NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinNingxiaHuizuAutonomous
Region.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,NingxiaGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuGrapeGrowingCo.,Ltd.(“GrapeGrowing”),abranchoftheCompany,whoseprincipalactivityisgrapegrowingisincorporatedinZhifuDistrict,YantaiCity,ShandongProvince.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,GrapeGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”),abranchoftheCompany,isanenterpriseengagedingrapegrowingintheEconomicandTechnologicalDevelopmentZoneofYantaiCity,ShandongProvince.PursuanttoArticle27oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandArticle86oftheImplementationRegulationsoftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,R&DCentreenjoysthepreferentialpolicyofexemptionofenterpriseincometaxonincomefromgrapegrowing.BeijingChangyuAFIPAgricultureDevelopmentCo.,Ltd.(“AgricultureDevelopment”),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinMiyun,Beijing.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,AgricultureDevelopmentenjoysanexemptionofcorporateincometax.XinjiangTianzhuWineCo.,Ltd.(“XinjiangTianzhu”),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),NingxiaChateauChangyuMoserisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom1January2021to31December2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),NingxiaChateauChangyuMoserisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom1January2021to31December2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.NingxiaChangyuLongyuChateauCo.,Ltd.("NingxiaChateau"),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinYinchuan,NingxiaHuiAutonomousRegion.InaccordancewiththeNoticeonContinuingtheEnterpriseIncomeTaxPoliciesfortheLarge-ScaleDevelopmentofWesternChina(NoticeoftheMinistryofFinance[2020]No.23),NingxiaChateauisqualifiedtoenjoypreferentialtaxationpolicies,whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2021to2030.Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”),asubsidiaryoftheCompany,isanenterpriseengagedinwineproductionandsales,incorporatedinShiheziCity,XinjiangUygurAutonomousRegion.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion
(Announcement[2020]No.23oftheMinistryofFinance),Changyu(Ningxia)Wineisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom1January2021to31December2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.InaccordancewiththeNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheFurtherImplementationofPreferentialEnterpriseIncomeTaxPoliciesforSmallandMicroEnterprises(NoticeoftheMinistryofFinanceandStateTaxationAdministration[2022]No.13),fortheannualtaxableincomeofsmall-scaleandlow-profitenterprisesexceedingRMB1million,butisnotmorethanRMB3million,theamountoftaxableincomeshallbereducedby25%,andtheapplicablerateofcorporateincometaxshallbe20%.BeijingChangyuWineSalesCo.,Ltd.(“BeijingSales”)isrecognisedasqualifiedsmall-scaleandlow-profitenterprisesInaccordancewiththeNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheExemptionofValue-AddedTaxforSmall-ScaleValue-AddedTaxTaxpayers(NoticeoftheMinistryofFinanceandStateTaxationAdministration[2022]No.15),from1April2022to31December2022,VATsmall-scaletaxpayerswithtaxrateof3%oftaxablesalesrevenueshouldbeexemptedfromVAT.XinjiangChangyuWineSalesCo.,Ltd.,asubsidiaryoftheCompany,isqualifiedtoenjoytheexemption.InaccordancewiththeNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonFurtherSteppinguptheImplementationofthePolicyfortheRefundofTerm-EndExcessInputValue-AddedTaxCredits(NoticeoftheMinistryofFinanceandStateTaxationAdministration[2022]No.14),thegovernmentshouldfurtherstepuptheimplementationofthepolicyfortherefundofterm-endexcessinputvalue-addedtaxcreditsandexpandthescopeofindustriesapplicabletothispolicy.TheCompanyanditsqualifiedsubsidiarieshaveenjoyedthispolicy.InaccordancewiththeNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheFurtherImplementationofReductionandExemptioninSixTaxesandTwoFeesforSmall-ScaleandMicroEnterprises(NoticeoftheMinistryofFinanceandStateTaxationAdministration[2022]No.10),from1January2022to31December2024,People'sGovernmentsofallprovinces,autonomousregionsandmunicipalitiescanreducetheresourcetax,urbanmaintenanceandconstructiontax,propertytax,Urbanandtownshiplandusetax,stampduty(excludingstampdutyonsecuritiestransaction),farmlandoccupationtax,educationsurcharges,andlocaleducationsurchargeswithina50%taxrangeforsmall-scaleVATtaxpayers,small-scaleandlow-profitenterprises,andindividually-ownedbusinessesbasedontheactualsituationintheregion.Shandong,Xinjiang,Ningxia,Shaanxi,andotherprovinces(regions,cities)areallsubjecttoa50%reductionin"sixtaxesandtwofees",andsomesubsidiariesoftheCompanyarequalifiedtoenjoythetaxreduction.InaccordancewiththeNoticeoftheShaanxiProvincialDepartmentofFinanceandShaanxiProvincialOfficeoftheStateAdministrationofTaxationontheIssuesConcerningtheReductionandExemptionforTaxpayersHavingDifficultiesinPaymentofUrbanandTownshipLandUseTaxandPropertyTax(ShaanCaiShui[2022]No.6),fortaxpayerswhosesalesinthefirstquarterof2022havedecreasedbymorethan30%year-on-yearorquarter-on-quarterandwhohavedifficultiesinpayingurbanandtownshiplandusetaxandpropertytax,financeandtaxationauthoritiesshouldapprovetheirapplicationsforreductionandexemption.ShaanxiChangyuRenaChateauCo.,Ltd.andChangyu(Jingyang)WineCo.,Ltd.,subsidiariesoftheCompany,meettheapplicationrequirementsandcanbeexemptedfromthefirstquarterpropertytaxandurbanandtownshiplandusetaxin2022.
V.Notestotheconsolidatedfinancialstatements1Cashatbankandonhand
Item
| Item | 2022 | 2021 |
| Cashonhand | 47,954 | 71,486 |
| Bankdeposits | 1,643,577,420 | 1,558,134,072 |
| Othermonetaryfunds | 7,828,741 | 8,890,435 |
| Total | 1,651,454,115 | 1,567,095,993 |
| Including:Totaloverseasdeposits | 17,073,210 | 28,691,521 |
Asat31December2022,thebalanceofrestrictedcashoftheGroupisasfollows:
| Item | 2022 | 2021 |
| Housemaintenancefunds | 2,671,774 | 2,678,529 |
Asat31December2022,theGroup’stermdepositswithpreviousmaturityofmorethanthreemonthsisRMB28,200,000withinterestrate2.025%-2.25%(31December2021:
RMB53,200,000).Asat31December2022,theGroup’sothermonetaryassetsisasfollows:
| Item | 2022 | 2021 |
| Depositsforlettersofcredit | 6,000,000 | 7,900,850 |
| Alipayaccountbalance | 1,695,245 | 859,558 |
| DepositforICBCplatform | 10,000 | 10,000 |
| Depositsforthecustoms | 123,496 | 120,027 |
| Total | 7,828,741 | 8,890,435 |
Asat31December2022,theGroupdidnothaveanyspecialinterestarrangementssuchastheestablishmentofjointfundmanagementaccountswithrelatedparties.2Billsreceivable
Classificationofbillsreceivable
| Item | 2022 | 2021 |
| Bankacceptancebills | 2,712,460 | 42,827,666 |
| Total | 2,712,460 | 42,827,666 |
Alloftheabovebillsareduewithinoneyear.3Accountsreceivable
(1)Accountsreceivablebycustomertypeareasfollows:
| Type | 31December2022 | 31December2021 |
| Amountsduefromrelatedparties | 2,827,473 | 287,788 |
| Amountsduefromothercustomers | 355,711,618 | 310,982,372 |
| Sub-total | 358,539,091 | 311,270,160 |
| Less:Provisionforbadanddoubtfuldebts | (14,556,106) | (20,263,750) |
| Total | 343,982,985 | 291,006,410 |
Asat31December2022,ownershiprestrictedaccountsreceivableisRMB59,982,807(31December2021:RMB49,061,015),referringtoNoteV.52.
(2)Theageinganalysisofaccountsreceivableisasfollows:
Ageing
| Ageing | 2022 | 2021 |
| Within1year(inclusive) | 356,064,300 | 302,602,474 |
| Over1yearbutwithin2years(inclusive) | 2,085,677 | 6,450,290 |
| Over2yearsbutwithin3years(inclusive) | 152,254 | 1,830,913 |
| Over3years | 236,860 | 386,483 |
| Sub-total | 358,539,091 | 311,270,160 |
| Less:Provisionforbadanddoubtfuldebts | (14,556,106) | (20,263,750) |
| Total | 343,982,985 | 291,006,410 |
Theageingiscountedstartingfromthedatewhenaccountsreceivablearerecognised.
(3)Accountsreceivablebyprovisioningmethod
AtalltimestheGroupmeasurestheimpairmentlossforaccountsreceivableatanamountequaltolifetimeECLs,andtheECLsarebasedonthenumberofoverduedaysandthelossgivendefault.AccordingtothehistoricalexperienceoftheGroup,therearenosignificantdifferencesinthelossesofdifferentcustomergroups.Therefore,differentcustomergroupsarenotfurtherdistinguishedwhencalculatingimpairmentlossbasedontheoverdueinformation.2022
Lossgivendefault
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.3% | 320,680,504 | 987,421 |
| Overduefor1to30days | 4.6% | 14,539,415 | 670,713 |
| Overduefor31to60days | 12.1% | 5,412,870 | 654,202 |
| Overduefor61to90days | 22.9% | 1,755,591 | 401,918 |
| Overduefor91to120days | 25.5% | 852,924 | 217,910 |
| Overduefor121to150days | 32.3% | 3,243,366 | 1,047,097 |
| Overduefor151to180days | 40.0% | 469,054 | 187,704 |
| Overduefor181to210days | 42.0% | 217,218 | 91,181 |
| Overduefor211to240days | 44.4% | 636,479 | 282,588 |
| Overduefor241to270days | 51.7% | 654,567 | 338,403 |
| Overduefor271to300days | 71.0% | 1,058,407 | 751,067 |
| Overduefor301to330days | 87.7% | 753,174 | 660,380 |
| Overduefor331to360days | 100.0% | 15,263 | 15,263 |
| Overduefor360days | 100.0% | 8,250,259 | 8,250,259 |
| Total | 4.1% | 358,539,091 | 14,556,106 |
2021
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.4% | 266,055,047 | 951,403 |
| Overduefor1to30days | 3.3% | 13,013,133 | 434,869 |
| Overduefor31to60days | 10.9% | 8,115,584 | 886,023 |
| Overduefor61to90days | 23.9% | 2,554,438 | 610,844 |
| Overduefor91to120days | 28.9% | 531,696 | 153,780 |
| Overduefor121to150days | 40.0% | 627,641 | 251,314 |
| Overduefor151to180days | 41.8% | 1,670,068 | 698,131 |
| Overduefor181to210days | 50.0% | 1,129,949 | 565,460 |
| Overduefor211to240days | 65.6% | 1,415,345 | 928,263 |
| Overduefor241to270days | 65.7% | 3,439,721 | 2,261,159 |
| Overduefor271to300days | 85.4% | 1,340,055 | 1,145,021 |
| Overduefor301to330days | 100.0% | 638,848 | 638,848 |
| Overduefor331to360days | 100.0% | 244,178 | 244,178 |
| Overduefor360days | 100.0% | 10,494,457 | 10,494,457 |
| Total | 6.5% | 311,270,160 | 20,263,750 |
Thelossgivendefaultismeasuredbasedontheactualcreditlossexperienceinthepast12months,andisadjustedtakingintoconsiderationthedifferencesamongtheeconomicconditionsduringthehistoricaldatacollectionperiod,thecurrenteconomicconditionsandtheeconomicconditionsduringtheexpectedlifetime.
(4)Movementsofprovisionsforbadanddoubtfuldebts:
2022
| 2022 | 2021 | |
| Balanceatthebeginningoftheyearafter | (20,263,750) | (12,326,606) |
| Chargefortheyear | (15,084,381) | (17,855,222) |
| Recoveriesorreversalsduringtheyear | 19,837,178 | 9,918,078 |
| Transfersoutduringtheyear | 954,847 | - |
| Balanceattheendoftheyear | (14,556,106) | (20,263,750) |
(5)Fivelargestaccountsreceivablebydebtorattheendoftheyear:
| Name | RelationshipwiththeGroup | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Thirdparty | 149,053,783 | Within1year | 41.6% | 458,958 |
| DebtorTwo | Thirdparty | 6,835,106 | Within1year | 1.9% | 385,547 |
| DebtorThree | Thirdparty | 6,816,495 | Within1year | 1.9% | 384,497 |
| DebtorFour | Thirdparty | 6,193,118 | Within1year | 1.7% | 349,334 |
| DebtorFive | Thirdparty | 6,070,804 | Within1year | 1.7% | 18,693 |
| Total | 174,969,306? | 48.8% | 1,597,029 |
4Receivablesunderfinancing
| Item | Note | 2022 | 2021 |
| Billsreceivable | (1) | 309,329,918 | 364,457,497 |
(1)Asat31December2022,therewasnopledgedbillsreceivable(31December2021:Nil).
(2)Outstandingendorsedordiscountedbillsthathavenotmaturedattheendoftheyear
| Item | Amountderecognisedatyearend |
| Bankacceptancebills | 500,480,279 |
| Total | 500,480,279 |
Asat31December2022,billsendorsedbytheGrouptootherpartieswhicharenotyetdueattheendoftheperiodisRMB500,480,279(31December2021:RMB449,373,119).Thenotesareusedforpaymenttosuppliersandconstructions.TheGroupbelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theGroupwouldundertakelimitedliabilityforthenotes.
5Prepayments
(1)Prepaymentsbycategory:
Item
| Item | 2022 | 2021 |
| Prepayments | 60,415,508 | 75,235,879 |
| Total | 60,415,508 | 75,235,879 |
(2)Theageinganalysisofprepaymentsisasfollows:
| Ageing | 2022 | 2021 | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within1year(inclusive) | 59,426,080 | 98.4% | 75,207,094 | 99.9% |
| Over1yearbutwithin2years(inclusive) | 989,428 | 1.6% | 28,785 | 0.1% |
| Total | 60,415,508 | 100.0% | 75,235,879 | 100.0% |
Theageingiscountedstartingfromthedatewhenprepaymentsarerecognised.
(3)Fivelargestprepaymentsbydebtorattheendoftheyear:
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Prepayments | 12,123,832 | Within1year | 20.1% | - |
| DebtorTwo | Prepayments | 9,768,618 | Within1year | 16.2% | - |
| DebtorThree | Prepayments | 8,796,180 | Within1year | 14.6% | - |
| DebtorFour | Prepayments | 3,441,960 | Within1year | 5.7% | - |
| DebtorFive | Prepayments | 1,350,000 | Within1year | 2.2% | - |
| Total | 35,480,590 | 58.8%? | - |
6Otherreceivables
| 31December2022 | 31December2021 | |
| Others | 70,542,398 | 30,125,270 |
| Total | 70,542,398 | 30,125,270 |
(1)Interestreceivable
(a)Othersbycustomertype:
| Customertype | 31December2022 | 31December2021 |
| Amountsduefromrelatedparties | - | 341,880 |
| Amountsduefromothercompanies | 70,542,398 | 29,783,390 |
| Sub-total | 70,542,398 | 30,125,270 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 70,542,398 | 30,125,270 |
(b)Theageinganalysisisasfollows:
Ageing
| Ageing | 2022 | 2021 |
| Within1year(inclusive) | 67,221,713 | 27,191,986 |
| Over1yearbutwithin2years(inclusive) | 1,208,361 | 70,480 |
| Over2yearsbutwithin3years(inclusive) | 57,928 | 190,857 |
| Over3years | 2,054,396 | 2,671,947 |
| Sub-total | 70,542,398 | 30,125,270 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 70,542,398 | 30,125,270 |
Theageingiscountedstartingfromthedatewhenotherreceivablesarerecognised.(c)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2022,nobadanddoubtfuldebtprovisionwasmadeforother
receivables(31December2021:Nil).
Asat31December2022,theGrouphasnootherreceivableswrittenoff(31December
2021:Nil).(d)Otherscategorisedbynature
| Natureofotherreceivables | 2022 | 2021 |
| Landpurchasesandreservesreceivable | 41,268,902 | 11,550,000 |
| RefundofconsumptiontaxandVAT | 12,509,201 | 7,204,557 |
| Deposit | 5,578,001 | 4,568,157 |
| Pettycashreceivable | 440,759 | 252,481 |
| Others | 10,745,535 | 6,550,075 |
| Sub-total | 70,542,398 | 30,125,270 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 70,542,398 | 30,125,270 |
(e)Fivelargestothers-bydebtorattheendoftheyear
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Landpurchasesandreservesreceivable | 41,268,902 | Within1year | 58.5% | - |
| DebtorTwo | RefundofVAT | 10,927,015 | Within1year | 15.5% | - |
| DebtorThree | Deposits | 2,002,000 | Within1year | 2.8% | - |
| DebtorFour | RefundofVAT | 1,582,186 | Within1year | 2.2% | - |
| DebtorFive | Advanceitems | 1,452,991 | Within1year | 2.1% | - |
| Total | 57,233,094 | 81.1% | - |
7Inventories
(1)Inventoriesbycategory:
Item
| Item | 2022 | 2021 | ||||
| Bookvalue | Provisionforimpairmentofinventories | Carryingamount | Bookvalue | Provisionforimpairmentofinventories | Carryingamount | |
| Rawmaterials | 258,200,178 | - | 258,200,178 | 245,114,403 | - | 245,114,403 |
| Workinprogress | 1,986,391,270 | - | 1,986,391,270 | 1,937,081,109 | - | 1,937,081,109 |
| Finishedgoods | 673,171,026 | (14,363,959) | 658,807,067 | 634,212,222 | (13,785,214) | 620,427,008 |
| Total | 2,917,762,474 | (14,363,959) | 2,903,398,515 | 2,816,407,734 | (13,785,214) | 2,802,622,520 |
(2)Provisionforimpairmentofinventories:
| Item | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Closingbalance |
| Recognised | Reversal | |||
| Finishedgoods | 13,785,214 | 14,363,959 | (13,785,214) | 14,363,959 |
8Othercurrentassets
| Item | 2022 | 2021 |
| Royalty(NoteV.19) | 120,930,641 | - |
| Inputtaxtobecredited | 44,270,238 | 198,516,812 |
| Prepaidincometaxes | 19,102,111 | 16,697,663 |
| Deferredexpenses | 1,034,403 | 1,938,126 |
| Total | 185,337,393 | 217,152,601 |
9Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
| Item | 2022 | 2021 |
| Investmentsinjointventures | 37,970,535 | 39,652,834 |
| Investmentsinassociates | 3,400,850 | 6,843,676 |
| Sub-total | 41,371,385 | 46,496,510 |
| Less:Provisionforimpairment | - | - |
| Total | 41,371,385 | 46,496,510 |
(2)Movementsoflong-termequityinvestmentsduringtheyearareasfollows:
Investee
| Investee | 2022Balanceatthebeginningoftheyear | Movementsduringtheyear | 2022Closingbalance | Shareholdingpercentage | ||
| Increaseincapital | Decreaseincapital | Lossesfrominvestmentsunderequity-method | ||||
| Jointventures | ? | ? | ? | ? | ? | |
| SASL&MHoldings(“L&MHoldings”) | 39,652,834 | - | - | (1,682,299) | 37,970,535 | 55% |
| Associates | ? | ? | ? | ? | ? | |
| WEMISS(Shanghai)EnterpriseDevelopmentCo.,Ltd(“WEMISSShanghai”) | 2,366,811 | - | - | (48,460) | 2,318,351 | 30% |
| Yantai.SantaiRealEstateDevelopmentCo.,Ltd.(Note1) | 3,519,656 | - | (3,519,656) | - | - | 35%? |
| ChengduYufengBrandManagementCo.,Ltd.(Note2) | 481,472 | - | - | (61,103) | 420,369 | 10%? |
| YantaiGuolongWineIndustryCo.,Ltd.(Note2) | 475,737 | - | - | 186,393 | 662,130 | 10%? |
| Sub-total | 6,843,676 | - | (3,519,656) | 76,830 | 3,400,850 | ? |
| Total | 46,496,510 | ?- | (3,519,656) | (1,605,469) | 41,371,385 | ? |
Note1:InApril2022,theBoardofDirectorsoftheCompanyresolvedtoagreetheliquidationofYantaiSantaiRealEstateDevelopmentCo.,Ltd.(“SantaiRealEstate”).InMay2022,YantaiSantaiRealEstateDevelopmentCo.,Ltd.heldashareholders’generalmeeting,theCompanyandShandongGreentownInvestmentPropertyCo.,Ltd.andChinaContinentsandOceansConstructionCo.,Ltd.havereachagreementontheliquidationofYantaiSantaiRealEstateDevelopmentCo.,Ltd.SantaiRealEstatehascompletedthederegistrationproceduresinAugust2022.Aftertheliquidation,theCompanyrecoveredRMB1,677,331intotal,resultingininvestmentlossesofRMB1,842,325.Note2:TheGrouphasappointedonedirectortoeachoftheseinvestees.
10Investmentproperties
Buildingsand
plants
| Buildingsandplants | |
| Cost | |
| Balanceasat31December2021and31December2022 | 70,954,045 |
| Accumulateddepreciation | |
| 31December2021 | (46,451,787) |
| Chargefortheyear | (2,386,940) |
| 31December2022 | (48,838,727) |
| Carryingamount | ? |
| 31December2022 | 22,115,318 |
| 31December2021 | 24,502,258 |
11Fixedassets
(1)Fixedassets
| Item | Plant&buildings | Machinery&equipment | Motorvehicles | Total |
| Cost | ||||
| 31December2021 | 5,294,917,836 | 2,820,909,563 | 27,181,876 | 8,143,009,275 |
| Additionsduringtheyear | ||||
| -Purchases | 19,223,038 | 62,551,100 | 1,423,629 | 83,197,767 |
| -Transfersfromconstructioninprogress | 608,452,694 | 4,638,003 | - | 613,090,697 |
| Disposalsorwritten-offsduringtheyear | (44,394,513) | (94,370,491) | (2,716,953) | (141,481,957) |
| 31December2022 | 5,878,199,055 | 2,793,728,175 | 25,888,552 | 8,697,815,782 |
| Accumulateddepreciation | ||||
| 31December2021 | (1,017,892,171) | (1,397,163,895) | (22,607,868) | (2,437,663,934) |
| Chargefortheyear | (157,770,688) | (151,791,806) | (2,088,585) | (311,651,079) |
| Disposalsorwritten-offsduringtheyear | 8,567,494 | 71,691,834 | 2,063,424 | 82,322,752 |
| 31December2022 | (1,167,095,365) | (1,477,263,867) | (22,633,029) | (2,666,992,261) |
| Provisionforimpairment | ||||
| 31December2021 | -- | (17,478,027) | - | (17,478,027) |
| Reversalduringtheyear | -- | 14,792,478 | - | 14,792,478 |
| 31December2022 | -- | (2,685,549) | - | (2,685,549) |
| Carryingamount | ||||
| 31December2022 | 4,711,103,690 | 1,313,778,759 | 3,255,523 | 6,028,137,972 |
| 31December2021 | 4,277,025,665 | 1,406,267,641 | 4,574,008 | 5,687,867,314 |
Asat31December2022,ownershiprestrictednetvalueoffixedassetsisRMB303,897,124(31December2021:RMB313,012,605),referringtoNoteV.52.
(2)Fixedassetsleasedoutunderoperatingleases
| Item | Cost | Accumulateddepreciation | Provisionforimpairment | Carryingamount |
| Buildings | 24,150,108 | (11,271,447) | - | 12,878,661 |
| Machineryequipment | 19,121,524 | (16,384,009) | (2,685,549) | 51,966 |
| Motorvehicles | 3,213,054 | (3,060,512) | - | 152,542 |
| Total | 46,484,686 | (30,715,968) | (2,685,549) | 13,083,169 |
(3)Fixedassetsleasedoutunderoperatingleases
Item
| Item | Carryingamountattheendoftheyear |
| Machineryequipment | 4,365 |
(4)Fixedassetspendingcertificatesofownership
| Item | Carryingamount | Reasonwhythecertificatesarepending |
| Dormitories,mainbuildingandreceptionbuildingofChanganChateau | 268,686,071 | Processing |
| BuildingsandboilerhousesofKOYABrand | 173,899,231 | Processing |
| Europeantown,mainbuildingandservicebuildingofAFIP | 164,540,005 | Processing |
| OfficeandpackagingshopofGoldenIcewineValley | 9,436,822 | Processing |
| FermentationshopofZhangyu(Jingyang) | 4,698,998 | Processing |
| Office,experimentbuildingandworkshopofFermentationCentre | 3,147,779 | Processing |
| FinishedgoodswarehouseandworkshopofKylinPackaging | 2,034,138 | Processing |
| Others | 276,938 | Processing |
ThebuildingswithoutpropertycertificateabovehavenosignificantimpactontheGroup’smanagement.12Constructioninprogress
(1)Constructioninprogress
| Project | 2022 | 2021 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| Museumconstructionproject | 32,981,419 | - | 32,981,419 | 37,093 | - | 37,093 |
| ShiheziChateauConstructionProject | 7,065,744 | - | 7,065,744 | 1,028,512 | - | 1,028,512 |
| NingxiaChateauConstructionProject | - | - | - | 2,835,598 | - | 2,835,598 |
| ChanganChateauConstructionProject | - | - | - | 1,245,742 | - | 1,245,742 |
| R&DCentre(“ChangyuWineComplex”)Project | - | - | - | 577,328,351 | - | 577,328,351 |
| OtherCompanies’ConstructionProject | 886,998 | - | 886,998 | 7,696,803 | - | 7,696,803 |
| Total | 40,934,161 | - | 40,934,161 | 590,172,099 | - | 590,172,099 |
(2)Movementsofmajorconstructionprojectsinprogressduringtheyear
Item
| Item | Budget(RMBmillion) | Openingbalance | Additionsduringtheyear | Transferstofixedassets | Othertransfersout | Closingbalance | Percentageofactualcosttobudget(%) | Accumulatedcapitalisedinterest | Attributableto:Interestcapitalisedfortheyear | Interestrateforcapitalisationin2022(%) | Sourcesoffunding |
| Museumconstructionproject | 51 | 37,093 | 32,944,326 | - | - | 32,981,419 | 65% | - | ?- | ?- | Self-raised |
| ShiheziChateauConstructionProject | 780 | 1,028,512 | 6,037,232 | - | - | 7,065,744 | 97% | - | ?- | ?- | Self-raised |
| NingxiaChateauConstructionProject | 428 | 2,835,598 | 1,363,790 | (4,199,388) | - | - | 100% | - | ?- | ?- | Self-raised |
| ChanganChateauConstructionProject | 698 | 1,245,742 | 718,344 | (1,964,086) | - | - | 100% | - | - | - | Self-raised |
| ChangyuWineComplex | 3,740 | 577,328,351 | 39,794,848 | (606,407,063) | (10,716,136) | - | 100% | 17,155,308 | ?- | - | Loansfromfinancialinstitutionsandself-raised |
13Bearerbiologicalassets
Bearerbiologicalassetsarevines,whichmeasuredincostmethod.
Item
| Item | Immaturebiologicalassets | Maturebiologicalassets | Total |
| Originalbookvalue | |||
| 31December2021 | 17,909,982 | 252,353,951 | 270,263,933 |
| Additionsduringtheyear | |||
| -Increaseincultivated | 5,730,348 | 8,750 | 5,739,098 |
| -Transferredtomature | (121,173) | 121,173 | - |
| Decreaseduringtheyear | (113,600) | (12,500) | (126,100) |
| 31December2022 | 23,405,557 | 252,471,374 | 275,876,931 |
| Accumulatedamortisation | |||
| 31December2021 | - | (76,550,991) | (76,550,991) |
| Chargefortheyear | - | (14,911,694) | (14,911,694) |
| Decreaseduringtheyear | - | 6,495 | 6,495 |
| 31December2022 | - | (91,456,190) | (91,456,190) |
| Carryingamount | |||
| 31December2022 | 23,405,557 | 161,015,184 | 184,420,741 |
| 31December2021 | 17,909,982 | 175,802,960 | 193,712,942 |
Asat31December2022,thereisnobiologicalassetwithownershiprestricted(31December2021:Nil).Asat31December2022,noprovisionforimpairmentofbiologicalassetoftheGroupwasrecognisedasthereisnoanyindicationexists(31December2021:Nil).14Leases
(1)Asalessee
Right-of-useassets
| Item | Plant&buildings | Lands | Others | Total |
| Cost | ||||
| Balanceatthebeginningoftheyear | 57,368,820 | 137,980,409 | 1,697,986 | 197,047,215 |
| Additionsduringtheyear | 27,449,712 | - | - | 27,449,712 |
| Balanceattheendoftheyear | 84,818,532 | 137,980,409 | 1,697,986 | 224,496,927 |
| Accumulateddepreciation | ||||
| Balanceatthebeginningoftheyear | (17,898,529) | (43,900,453) | (679,194) | (62,478,176) |
| Chargefortheyear | (16,025,426) | (5,766,568) | (339,598) | (22,131,592) |
| Balanceattheendoftheyear | (33,923,955) | (49,667,021) | (1,018,792) | (84,609,768) |
| Carryingamounts | ||||
| Attheendoftheyear | 50,894,577 | 88,313,388 | 679,194 | 139,887,159 |
| Atthebeginningoftheyear | 39,470,291 | 94,079,956 | 1,018,792 | 134,569,039 |
Leaseliabilities
Item
| Item | Note | 31December2022 | 1January2022 |
| Long-termleaseliabilities | 128,514,033 | 116,156,677 | |
| Less:leaseliabilitiesduewithinoneyear | V,27 | 19,008,940 | 14,345,089 |
| Total | 109,505,093 | 101,811,588 |
(2)Asalessor
Operatinglease
| Item | 2022 | 2021 |
| Leaseincome | 2,341,226 | 2,015,486 |
15Intangibleassets
| Item | Landuserights | Softwarelicenses | Trademarks | Total |
| Originalbookvalue | ||||
| 31December2021 | 500,566,714 | 100,664,699 | 189,491,618 | 790,723,031 |
| Additionsduringtheyear | ||||
| -Purchase | - | 1,314,730 | 83,450 | 1,398,180 |
| Decreaseduringtheyear | ||||
| -Disposals | (24,795,833) | - | - | (24,795,833) |
| 31December2022 | 475,770,881 | 101,979,429 | 189,575,068 | 767,325,378 |
| Accumulatedamortisation | ||||
| 31December2021 | (104,622,145) | (53,525,938) | (14,708,069) | (172,856,152) |
| Additionsduringtheyear | ||||
| -Chargefortheyear | (15,613,814) | (9,309,645) | (842,812) | (25,766,271) |
| Decreaseduringtheyear | ||||
| -Disposal | 9,537,891 | - | - | 9,537,891 |
| 31December2022 | (110,698,068) | (62,835,583) | (15,550,881) | (189,084,532) |
| Carryingamount | ||||
| 31December2022 | 365,072,813 | 39,143,846 | 174,024,187 | 578,240,846 |
| 31December2021 | 395,944,569 | 47,138,761 | 174,783,549 | 617,866,879 |
Asat31December2022,theGrouphaslanduserightwithinfiniteusefullivesofRMB32,376,235(31December2021:RMB32,640,119),representingthefreeholdlandheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstateunderrelevantChileandAustralialaws,onwhichtheamortisationisnotrequired.Asat31December2022,theGrouphastrademarkwithinfiniteusefullivesofRMB155,345,421(31December2021:RMB155,355,846),whichisheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstate.Therecoverableamountofthetrademarkisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflowsgeneratedfromtheassetgrouptowhichthesingleassetsoftrademarkrightbelongs.Themanagementpreparesthecashflowprojectionforfuture5years(the“projectingperiod”)basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the“subsequentperiod”).Thepretaxdiscountratesusedinthecashflowprojectionsare13.0%and14.1%,respectively.Akeyassumptionintheestimateoffuturecashflowsistherevenuegrowthrateintheprojectingperiod.SuchrevenuegrowthrateisdeterminedbasedontheindustryandtheexpectedgrowthrateofChileIndomitaWineGroupandAustraliaKilikanoonEstate.
TheGrouprecognisesthetrademarkwithinfiniteusefullivesasintangibleassets,theimpairmentassessmentofwhichismadeattheendofeachreportingyear.Themanagementbelievesthatanyreasonablechangeoftheaboveassumptionswillnotresultinthetotalbookvalueoftheassetgrouptowhichthesingleassetsoftrademarkrightbelongsexceedingitsrecoverableamount.Accordingtotheresultofimpairmentassessment,bytheendof31December2022,themanagementbelievesthereisnoimpairmentlossonthosetrademarkswithinfiniteusefullivesoftheGroup.Asat31December2022,ownershiprestrictednetvalueofintangibleassetsisRMB169,385,254(31December2021:RMB201,345,477),referringtoNoteV.52.16Goodwill
(1)Changesingoodwill
Nameofinvesteeoreventsfromwhichgoodwillarose
| Nameofinvesteeoreventsfromwhichgoodwillarose | Note | 31December2021 | Additionsduringtheyear | Disposalsduringtheyear | 31December2022 |
| Originalbookvalue | |||||
| EtablissementsRoulletFransac(“RoulletFransac”) | (a) | 13,112,525 | - | - | 13,112,525 |
| DicotPartners,S.L(“Dicot”) | (a) | 92,391,901 | - | - | 92,391,901 |
| ChileIndomitaWineGroup | (a) | 6,870,115 | - | - | 6,870,115 |
| AustraliaKilikanoonEstate | (a) | 37,063,130 | - | - | 37,063,130 |
| Sub-total | 149,437,671 | - | - | 149,437,671 | |
| Impairmentprovision | |||||
| ChileIndomitaWineGroup | (37,063,130) | - | - | (37,063,130) | |
| DicotPartners,S.L(“Dicot”) | - | (5,210,925) | - | (5,210,925) | |
| Sub-total | (37,063,130) | (5,210,925) | - | (42,274,055) | |
| Carryingamount | 112,374,541 | (5,210,925) | - | 107,163,616 |
(a)TheGroupacquiredFransacSales,DicotandMirefleurs,ChileIndomitaWineGroupand
AustraliaKilikanoonEstateinDecember2013,September2015,July2017andJanuary2018respectively,resultinginrespectivegoodwillamountingtoRMB13,112,525,RMB92,391,901,RMB6,870,115andRMB37,063,130.Thegoodwillhadbeenallocatedtocorrespondingassetgroupsforimpairmenttesting.
(2)Provisionforimpairmentofgoodwill
TheGrouphasallocatedtheabovegoodwilltorelevantassetgroupsforimpairmenttesting.Asat31December2022,AustraliaKilikanoonEstatehasmadefullprovisionforimpairmentofgoodwillandAtriohasmadeprovisionforimpairmentamountedtoRMB5,210,925forthecurrentperiod.Therecoverableamountoftheassetgroupisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflows.Themanagementpreparesthecashflowprojectionforfuture5years(the“projectingperiod”)basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the“subsequentperiod”).ThepretaxdiscountrateusedincalculatingtherecoverableamountsofRoulletFransac,Dicot,andMirefleurs,IndomitaWineare11.4%,11.8%,and13.0%,respectively(2021:12.1%,11.2%,and11.0%).Thekeyassumptionisthegrowthrateofannualrevenuegrowthrateofrelevantsubsidiaries,whichiscomputedbasedontheexpectedgrowthrateofeachsubsidiaryandlong-termaveragegrowthratesofrelevantindustries.Otherrelevantkeyassumptionisbudgetgrossprofitmargin,whichisdeterminedbasedonthehistorical
performanceofeachsubsidiaryanditsexpectationsformarketdevelopment.Accordingtotheresultsoftheimpairmenttest,theGroupfoundthattherecoverableamountoftheassetgroupincludinggoodwillofDicotPartners,S.Lislowerthanitsbookvalue.Therefore,on31December2022,theprovisionforimpairmentofgoodwillofthisyearwasRMB5,210,925.TheimpairmentlossamountingtoRMB5,210,925wasrecognisedinassetimpairmentlossin2022.17Long-termdeferredexpenses
Item
| Item | 31December2021 | Additionsduringtheyear | Amortisationfortheyear | 31December2022 |
| Landrequisitionfee | 46,822,724 | - | (1,778,943) | 45,043,781 |
| Greeningfee | 127,686,106 | - | (8,690,102) | 118,996,004 |
| Leaseholdimprovement | 104,279,631 | 7,864,611 | (8,248,878) | 103,895,364 |
| Others | 5,804,702 | 1,582,204 | (622,823) | 6,764,083 |
| Total | 284,593,163 | 9,446,815 | (19,340,746) | 274,699,232 |
18Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetsandliabilities
| Item | 31December2022 | 31December2021 | ||
| Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | |
| Deferredtaxassets: | ||||
| Provisionforimpairmentofassets | 31,605,614 | 8,024,903 | 51,526,991 | 11,522,575 |
| Unrealisedprofitsofintra-grouptransactions | 431,328,252 | 107,832,063 | 481,484,528 | 120,371,131 |
| Unpaidbonus | 132,673,269 | 33,168,317 | 150,325,085 | 37,581,271 |
| Terminationbenefits | 9,422,154 | 2,355,538 | 14,132,191 | 3,533,048 |
| Deductibletaxlosses | 285,560,642 | 67,483,931 | 266,833,106 | 63,160,456 |
| Deferredincome | 38,389,058 | 8,288,411 | 41,295,338 | 8,642,716 |
| Others | 837,972 | 209,493 | 1,598,132 | 399,534 |
| Sub-total | 929,816,961 | 227,362,656 | 1,007,195,371 | 245,210,731 |
| Deferredtaxliabilities: | ||||
| Revaluationduetobusinesscombinationsinvolvingentitiesnotundercommoncontrol | 43,651,105 | 10,577,065 | 46,411,478 | 11,300,970 |
| Others | 2,759,468 | 689,867 | 2,012,000 | 503,000 |
| Sub-total | 46,410,573 | 11,266,932 | 48,423,478 | 11,803,970 |
(2)Detailsofunrecogniseddeferredtaxassets
Item
| Item | 2022 | 2021 |
| Deductibletaxlosses | 352,775,161 | 234,250,359 |
(3)Expirationofdeductibletaxlossesforunrecogniseddeferredtaxassets
| Year | 2022 | 2021 |
| 2022 | - | 21,367,869 |
| 2023 | 22,801,737 | 22,801,737 |
| 2024 | 42,088,453 | 42,088,453 |
| 2025 | 75,724,538 | 75,794,409 |
| 2026 | 72,197,891 | 72,197,891 |
| 2027 | 139,962,542 | - |
| Total | 352,775,161 | 234,250,359 |
19Othernon-currentassets
| Item | 2022 | 2021 |
| Royalty | - | 144,120,442 |
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theGroupmayusecertaintrademarksofChangyuGroupCompany,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup’sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.Accordingtotheaboveroyaltyagreement,ChangyuGroupcollectedatotalofRMB576,507,809forroyaltyfrom2013to2019,ofwhich51%wasusedtopromotetrademarkssuchasChangyuandtheproductofthiscontract,totallingRMB294,018,093.TheamountisusedforpromotionofChangyuandothertrademarksandtheproductsofthiscontract,totallingRMB62,250,368,thedifferenceisRMB231,768,615(includingtax).On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGrouppaysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon0.98%ofthesalesvolumeoftheGroup‘scontractproductsusingthistrademark.Thearticleisamendedto:
TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.ChangyuGrouppromisedtooffsetthedifferenceofRMB231,768,615abovewiththeroyaltyforfouryears,i.e.from2019to2022.Ifitisnotsufficientfordeduction,therestwillberepaidinaone-offmannerin2023.Ifthereissurplus,thesurpluspartoftheroyaltywillbechargedfromtheyearwhenthesurplusoccurs.Astheamountisalong-termprerpayment,theCompanyrecognisestheamountasothernon-currentassetsandmeanwhileoffsetthesalesfee,i.e.royalty.TheGroup’sroyaltyin2022wasRMB23,189,801(VATincluded).Whenthedifferenceisdeductedbytheabove-mentionedamount,thebalanceofroyaltyduefromChangyuGroupwasRMB120,930,641.Classifiedittoothercurrentassetson31December2022.
20Short-termloans
Short-termloansbycategory:
Item
| Item | 2022 | 2021 |
| Unsecuredloans | 227,866,802 | 478,331,156 |
| Mortgagedloans | 127,908,137 | 118,469,193 |
| Guaranteedloans | 33,603,541 | 25,266,108 |
| Total | 389,378,480 | 622,066,457 |
Asat31December2022,detailsofshort-termborrowingswereasfollows:
| Amount | Exchangerate | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear |
| RMB | % | % |
Creditloans(RMB)
| Creditloans(RMB) | 200,000,000 | 1.0000 | 200,000,000 | Floating | 1YearLPR-0.5% | 3.20% |
| Creditloans(USD) | 4,000,000 | 6.9646 | 27,866,802 | Fixed | 4.15%-5.95% | 4.15%-5.95% |
| Mortgagedloans(EUR) | 8,080,778 | 7.4229 | 59,982,807 | Fixed | 0.65%-1.60% | 0.65%-1.60% |
| Mortgagedloans(USD) | 9,750,000 | 6.9646 | 67,925,330 | Fixed | 4.15%-6.76% | 4.15%-6.76% |
| Guaranteedloans(AUD) | 7,128,758 | 4.7138 | 33,603,541 | Floating | 1.81%-2.54% | 1.81%-2.54% |
| Total | 389,378,480 |
?Asat31December2022,mortgagedloans(EUR)wereHaciendayVi?edosMarquesdel
Atrio,S.L.U(“Atrio“)factoringofaccountsreceivablefrombanksincludingBancodeSabadell,S.A.ofEUR8,080,778(equivalentofRMB59,982,807)(31December2021:
EUR6,795,437,equivalentofRMB49,061,015).?On31December2022,ChileIndomitaWineGrouppledgeditsfixedassetstoBanco
ScotiabanktoborrowUSD9,750,000(equivalenttoRMB67,925,330)(31December2021:
USD11,000,000,equivalenttoRMB69,408,178).?On31December2022,thesecuredloanrepresentedthesecuredloanofAustralia
KilikanoonEstateofAUD7,128,758(equivalenttoRMB33,603,541)(31December2021:
AUD5,466,488,equivalenttoRMB25,266,108).21Accountspayable
| Ageing | 2022 | 2021 |
| Within1year(inclusive) | 466,035,065 | 486,006,974 |
| Over1yearbutwithin2years(inclusive) | 34,588,275 | 4,435,786 |
| Over2yearsbutwithin3years(inclusive) | 1,637,390 | 1,405,133 |
| Over3years | 1,063,016 | 1,605,923 |
| Total | 503,323,746 | 493,453,816 |
Significantaccountspayablewithageingofmorethanoneyear:
Item
| Item | Balanceattheendoftheyear | Reasonfornorepayment |
| Entity1 | 19,434,600 | Payabletoparentcompany |
| Entity2 | 13,185,095 | Creditperiodofmorethan1yearfromoverseasoriginalwinesuppliers |
| Total | 32,619,695 |
22Contractliabilities
| Item | Asat31December2022 | Asat1January2022 |
| Receiptinadvance | 164,437,033 | 144,013,594 |
| Withholdingsalesrebates | 1,290,958 | 3,107,122 |
| Total | 165,727,991 | 147,120,716 |
ContractliabilitiesprimarilyrelatetotheGroup’sadvancesfromsalescontractsofspecificcustomersandthewithholdingsalesrebates.Relevantcontractliabilitiesarerecognisedasrevenuewhenthecontrolofthegoodsistransferredtothecustomer.23Employeebenefitspayable
(1)Employeebenefitspayable:
| Note | 31December2021 | Additionsduringtheyear | Decreaseduringtheyear | 31December2022 | |
| Short-termemployeebenefits | (2) | 180,557,897 | 443,469,022 | (450,829,428) | 173,197,491 |
| Post-employmentbenefits-definedcontributionplans | (3) | 329,353 | 36,634,508 | (36,631,968) | 331,893 |
| Terminationbenefits | 14,132,191 | 1,418,109 | (6,128,146) | 9,422,154 | |
| Total | 195,019,441 | 481,521,639 | (493,589,542) | 182,951,538 |
(2)Short-termemployeebenefits
| 31December2021 | Additionsduringtheyear | Decreaseduringtheyear | 31December2022 | |
| Salaries,bonuses,allowances | 178,842,535 | 392,427,646 | (401,626,779) | 169,643,402 |
| Staffwelfare | 1,640,965 | 17,421,550 | (17,602,345) | 1,460,170 |
| Socialinsurance | 303,836 | 16,415,455 | (16,412,047) | 307,244 |
| Medicalinsurance | 303,836 | 14,763,764 | (14,760,356) | 307,244 |
| Work-relatedinjuryinsurance | - | 1,632,827 | (1,632,827) | - |
| Maternityinsurance | - | 18,864 | (18,864) | - |
| Housingfund | 38,582 | 12,431,795 | (12,431,795) | 38,582 |
| Labourunionfee,staffandworkers’educationfee | 1,851,650 | 4,772,576 | (4,876,133) | 1,748,093 |
| Sub-total | 182,677,568 | 443,469,022 | (452,949,099) | 173,197,491 |
| Less:Non-currentliabilities | 2,119,671 | - | (2,119,671) | - |
Total
| Total | 180,557,897 | 443,469,022 | (450,829,428) | 173,197,491 |
(3)Post-employmentbenefits-definedcontributionplans
| 31December2021 | Additionsduringtheyear | Decreaseduringtheyear | 31December2022 | |
| Basicpensioninsurance | 328,120 | 35,439,551 | (35,437,011) | 330,660 |
| Unemploymentinsurance | 1,233 | 1,194,957 | (1,194,957) | 1,233 |
| Total | 329,353 | 36,634,508 | (36,631,968) | 331,893 |
24Taxespayable
| Item | 2022 | 2021 |
| Value-addedtax | 42,260,465 | 54,103,944 |
| Consumptiontax | 45,524,174 | 70,563,701 |
| Corporateincometax | 131,264,991 | 194,566,746 |
| Individualincometax | 1,199,990 | 872,252 |
| Taxontheuseofurbanland | 1,899,840 | 2,441,121 |
| Educationsurcharges | 2,731,857 | 5,199,891 |
| Urbanmaintenanceandconstructiontax | 6,168,990 | 7,128,647 |
| Others | 8,645,595 | 7,445,998 |
| Total | 239,695,902 | 342,322,300 |
25Otherpayables
| Note | 31December2022 | 31December2021 | |
| Interestpayable | 88,889 | 323,074 | |
| Dividendspayable | 70,317 | 68,392 | |
| Others | (1) | 372,449,483 | 452,642,025 |
| Total | 372,608,689 | 453,033,491 |
(1)Others
(a)Detailsofothersbynatureareasfollows:
| Item | 2022 | 2021 |
| Depositpayabletodealer | 207,492,570 | 241,414,134 |
| Advertisingfeepayable | 40,244,601 | 41,264,460 |
| Equipmentandconstructionfeepayable | 15,976,573 | 44,345,312 |
| Freightchargespayable | 25,894,816 | 29,192,798 |
| Depositsduetosuppliers | 13,549,010 | 12,966,789 |
| Contractingfeepayable | 7,407,093 | 8,668,872 |
| Staffdeposit | 508,175 | 743,460 |
| Others | 61,376,645 | 74,046,200 |
| Total | 372,449,483 | 452,642,025 |
(b)Therearenosignificantothersagedoveroneyearaccuredthisyear.
26Othercurrentliabilities
Item
| Item | Asat31December2022 | Asat31December2021 |
| Taxtobetransferredoutassales | 18,945,706 | 18,374,193 |
| Total | 18,945,706 | 18,374,193 |
27Non-currentliabilitiesduewithinoneyear
Non-currentliabilitiesduewithinoneyearbycategoryareasfollows:
| Item | 2022 | 2021 |
| Long-termloansduewithinoneyear | 103,011,894 | 74,520,037 |
| Long-termpayablesduewithinoneyear | 22,000,000 | 22,000,000 |
| Long-termleaseliabilitiesduewithinoneyear | 19,008,940 | 14,345,089 |
| Total | 144,020,834 | 110,865,126 |
28Long-termloans
Long-termloansbycategory
| Item | 2022 | 2021 |
| Creditloans | 186,342,909 | 193,475,080 |
| Guaranteedloans | 44,781,100 | 57,092,000 |
| Less:Long-termloansduewithinoneyear | 103,011,894 | 74,520,037 |
| Total | 128,112,115 | 176,047,043 |
Asat31December2022,detailsoflong-termborrowingswereasfollows:
| Amount | Exchangerate | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | Long-termloansduewithinoneyear | Long-termloansdueafteroneyear | |
| RMB | % | % | ||||||
| Creditloans(EUR) | 24,698,121 | 7.4229 | 183,331,681 | Fixed | 1.50%-3.65% | 1.50%-3.65% | 103,011,894 | 80,319,787 |
| Guaranteedloans(RMB) | 405,667? | 7.4229? | 3,011,228 | Floating | 2.85%-3.35%? | 2.85%-3.35%? | -? | 3,011,228? |
| Guaranteedloans(AUD) | 9,500,000 | 4.7138 | 44,781,100 | Floating | BBSY+1.10% | 2.29% | - | 44,781,100 |
| Total | ? | ? | 231,124,009 | ? | ? | 103,011,894 | 128,112,115 |
Asat31December2022,Creditloans(EUR)wereEUR25,103,788borrowedbyBancoSabadell,Bankia,BancoSantander,BBVA,CajaRuraldeNavarretc.(equivalentofRMB186,342,909(31December2021:EUR26,798,216,equivalentofRMB193,475,080).AustraliaKilikanoonEstatehasborrowedAUD9,500,000(equivalentofRMB44,781,100)(31December2021:AUD11,000,000,equivalentofRMB50,842,000)fromANZBankanditwasguaranteedbytheCompany.29Long-termpayables
| Item | 2022 | 2021 |
| AgriculturalDevelopmentFundofChina(“CADF”) | 64,000,000 | 86,000,000 |
| Less:Long-termpayablesduewithinoneyear | 22,000,000 | 22,000,000 |
| Balanceoflong-termpayables | 42,000,000 | 64,000,000 |
In2016,RMB305,000,00,fromCADFwasinvestedinR&DCentre,CADFaccountedfor
37.9%oftheregisteredcapital.Accordingtotheinvestmentagreement,CADFwillrecoveryinvestmentfundsover10years,theinvestmentincomereceivedequalto1.2%oftheremainingunpaidprincipalperannum.Inadditiontothefixedincome,CADFwillnolongerenjoyotherprofitsorbearthelossofR&DCentre.Therefore,althoughtheinvestmentin
R&DCentre,nominallyequityinvestment,isactuallyadebtinvestment(financialdiscountloan).TheGrouptakethisinvestmentaslong-termpayables,whichmeasuredinamortizedcost.TheGrouprepaystheprincipalofRMB22,000,000in2022.RefertoNoteV.52fordetailsofmortgagedandpledgedassets.
Balanceoflong-termpayables
| Balanceoflong-termpayables | Returnoninvestment | Investmentdate | Terminationdateofrepayment | Duewithinoneyear | Dueafteroneyear | Mortgagedandpledgedassets |
| RMB | RMB | RMB | ||||
| 64,000,000 | 1.20% | 29February2016 | 28February2025 | 22,000,000 | 42,000,000 | Fixedassetsandintangibleassets |
30Deferredincome
| Item | 31December2021 | Additionsduringtheyear | Decreaseduringtheyear | 31December2022 |
| Governmentgrants | 41,295,338 | 9,153,000 | (12,059,280) | 38,389,058 |
Governmentgrants:
| Liability | 31December2021 | Additionsofgovernmentgrantsduringtheyear | Amountsrecognisedinotherincomeduringtheyear | 31December2022 | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 20,500,000 | - | (4,100,000) | 16,400,000 | Governmentgrantsrelatedtoassets |
| Xinjiangindustrialrevitalisationandtechnologicaltransformationproject | 11,376,000 | - | (1,422,000) | 9,954,000 | Governmentgrantsrelatedtoassets |
| Retainingwallsubsidies | - | 6,380,000 | (406,667) | 5,973,333 | Governmentgrantsrelatedtoassets |
| Coalsubsidy | 2,079,711 | - | - | 2,079,711 | Governmentgrantsrelatedtoassets |
| Winefermentationcapacityconstruction(Huanren)project | 2,000,000 | - | (400,000) | 1,600,000 | Governmentgrantsrelatedtoassets |
| Specialfundforefficientwater-savingirrigationproject | 1,153,000 | - | (162,000) | 991,000 | Governmentgrantsrelatedtoassets |
| Engineeringtechnologytransformationofinformationsystemproject | 1,160,000 | - | (580,000) | 580,000 | Governmentgrantsrelatedtoassets |
| Subsidyforeconomicandenergy-savingtechnologicaltransformationprojects | 641,500 | - | (128,300) | 513,200 | Governmentgrantsrelatedtoassets |
| SubsidyformechanicdevelopmentofPenglaiDaliuhangBase | 225,588 | - | (135,180) | 90,408 | Governmentgrantsrelatedtoassets |
| Specialgovernmentgrantforinfrastructure | 1,060,000 | - | (1,060,000) | - | Governmentgrantsrelatedtoassets |
| Liquorelectronictrackingproject | 524,095 | - | (524,095) | - | Governmentgrantsrelatedtoassets |
| FixedassetinvestmentrewardofShiheziChateauproject | 156,600 | - | (156,600) | - | Governmentgrantsrelatedtoassets |
| Subsidyforboilerreconstructionanddemolition | 60,000 | - | (60,000) | - | Governmentgrantsrelatedtoassets |
| SpecialFundsforInnovation-DrivenDevelopmentofYantaiCity | 308,844 | - | (136,438) | 172,406 | Relatedtoincome |
| PrizefromIndustrialDesignCompetitionofYantaiMayor’sCup | 50,000 | - | (15,000) | 35,000 | Relatedtoincome |
| Wineindustrydevelopmentproject | - | 2,773,000 | (2,773,000) | - | Relatedtoincome |
| Total | 41,295,338 | 9,153,000 | (12,059,280) | 38,389,058 |
31Othernon-currentliabilities
Item
| Item | 31December2022 | 31December2021 |
| Employeebenefitspayable | - | 2,119,671 |
32Sharecapital
| At31December2021and31December2022 | |
| UnrestrictedAshares | 453,460,800 |
| Bshares | 232,003,200 |
| Totalofunrestrictedshares | 685,464,000 |
33Capitalreserve
| Item | 31December2021 | Additionsduringtheyear | Decreaseduringtheyear | 31December2022 |
| Sharepremium | 519,052,172 | - | - | 519,052,172 |
| Others | 5,916,588 | - | - | 5,916,588 |
| Total | 524,968,760 | - | - | 524,968,760 |
34Othercomprehensiveincome
| Item | BalanceatthebeginningoftheyearattributabletoshareholdersoftheCompany | Accruedduringtheyear | BalanceattheendoftheyearattributabletoshareholdersoftheCompany | ||||
| Before-taxamount | Less:Previouslyrecognisedamounttransferredtoprofitorloss | Less:Incometaxexpenses | Net-of-taxamountattributabletoshareholdersoftheCompany | Net-of-taxamountattributabletonon-controllinginterests | |||
| Itemsthatmaybereclassifiedtoprofitorloss | |||||||
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | (34,707,177) | 12,282,545 | - | - | 10,946,939 | 1,335,606 | (23,760,238) |
35Surplusreserve
| Item | 31December2022 | 31December2021 |
| Statutorysurplusreserve | 342,732,000 | 342,732,000 |
InaccordancewiththeCompanyLawandtheArticlesofAssociationCompany,theCompanyappropriated10%ofitsnetprofittostatutorysurplusreserve.Theappropriationtothestatutorysurplusreservemaybeceasedwhentheaccumulatedappropriationreachesover50%oftheregisteredcapitaloftheCompany.TheCompanydoesnotappropriatenetprofittothesurplusreservein2022assurplusreserveoftheCompanyisabove50%oftheregisteredcapital.TheCompanycanappropriatediscretionarysurplusreserveafterappropriationofthestatutorysurplusreserve.Discretionarysurplusreservecanbeutilisedtooffsetthedeficitorincreasethesharecapitalafterapproval.
36Retainedearnings
Item
| Item | Note | 2022 | 2021 |
| Retainedearningsatthebeginningoftheyear(beforeadjustment) | 8,929,426,600 | 8,714,091,755 | |
| Impactofretrospectiveadjustmentofaccountingstandards | - | (10,582,161) | |
| Retainedearningsatthebeginningoftheyear(afteradjustment) | 8,929,426,600 | 8,703,509,594 | |
| Add:NetprofitsfortheyearattributabletoshareholdersoftheCompany | 428,681,411 | 500,102,606 | |
| Less:Dividendstoordinaryshares | (1) | (308,458,800) | (274,185,600) |
| Retainedearningsattheendoftheyear | (2) | 9,049,649,211 | 8,929,426,600 |
(1)Dividendsinrespectofordinarysharesdeclaredduringtheyear
Pursuanttotheshareholders’approvalattheshareholders’generalmeetingon27May2022,acashdividendofRMB0.45pershare(2021:RMB0.4pershare),totallingRMB308,458,800(2021:RMB274,185,600).
(2)Retainedearningsattheendoftheyear
Asat31December2022,theconsolidatedretainedearningsattributabletotheCompanyincludedanappropriationofRMB58,180,889(2021:RMB58,041,628)tosurplusreservemadebythesubsidiaries.37Operatingincomeandoperatingcosts
| Item | 2022 | 2021 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 3,860,311,318 | 1,651,154,424 | 3,879,875,396 | 1,604,954,772 |
| Otheroperatingactivities | 58,629,842 | 29,640,308 | 73,192,187 | 42,835,102 |
| Total | 3,918,941,160 | 1,680,794,732 | 3,953,067,583 | 1,647,789,874 |
| Including:Revenuefromcontractswithcustomers | 3,916,599,934 | 1,679,459,968 | 3,951,052,097 | 1,646,424,782 |
| Rentincome | 2,341,226 | 1,334,764 | 2,015,486 | 1,365,092 |
(1)Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2022 | 2021 |
| Bytypeofgoodsorservices | ||
| -Liquor | 3,860,311,318 | 3,879,875,396 |
| -Others | 56,288,616 | 71,176,701 |
| Bytimingoftransferringgoodsorservices | ||
| -Revenuerecognisedatapointintime | 3,916,599,934 | 3,951,052,097 |
38Taxesandsurcharges
Item
| Item | 2022 | 2021 |
| Consumptiontax | 198,284,289 | 164,791,894 |
| Urbanmaintenanceandconstructiontax | 28,067,931 | 30,604,422 |
| Educationsurcharges | 19,554,864 | 22,147,840 |
| Propertytax | 28,150,521 | 28,005,705 |
| Taxontheuseofurbanland | 11,403,394 | 11,654,759 |
| Stampduty | 3,230,856 | 6,488,829 |
| Others | 964,772 | 364,121 |
| Total | 289,656,627 | 264,057,570 |
39Sellinganddistributionexpenses
| Item | 2022 | 2021 |
| Salariesandbenefits | 282,395,182 | 308,876,899 |
| Marketingfee | 322,593,973 | 251,443,176 |
| Labourservicefee | 108,784,934 | 96,864,855 |
| Depreciationexpense | 47,509,217 | 48,014,605 |
| Storagerental | 25,572,282 | 28,110,876 |
| Advertisingfee | 75,862,425 | 91,168,885 |
| Royalty | 21,877,171 | 24,763,872 |
| Travellingexpenses | 23,759,493 | 21,624,100 |
| Designandproductionfee | 30,594,519 | 30,247,672 |
| Conferencefee | 8,735,659 | 20,088,371 |
| Water,electricityandgasfee | 16,438,410 | 14,988,125 |
| Others | 64,842,873 | 62,762,669 |
| Total | 1,028,966,138 | 998,954,105 |
40Generalandadministrativeexpenses
| Item | 2022 | 2021 |
| Salariesandbenefits | 73,824,670 | 73,920,103 |
| Depreciationexpenses | 85,366,361 | 79,928,195 |
| Repaircosts | 11,853,538 | 16,467,478 |
| Administrativeexpenses | 23,586,680 | 26,124,859 |
| Amortisationexpenses | 18,057,909 | 19,354,205 |
| Amortisationofgreeningfee | 17,846,265 | 19,186,231 |
| Rentalcharge | 122,097 | 5,735,121 |
| Safetyproductioncosts | 11,539,602 | 11,190,158 |
| Securityandcleaningfee | 8,530,050 | 7,455,965 |
| Contractingfee | 4,309,290 | 9,192,907 |
| Others | 32,569,069 | 30,521,154 |
| Total | 287,605,531 | 299,076,376 |
41Financialexpenses
Item
| Item | 2022 | 2021 |
| Interestexpensesfromloansandpayables | 22,174,501 | 24,504,339 |
| Interestexpensesfromleaseliabilities | 4,682,389 | 5,292,452 |
| Less:Borrowingcostscapitalised | - | 945,185 |
| Interestincomefromdeposits | (24,186,351) | (19,558,354) |
| Netexchangelosses | 3,301,716 | 8,296,888 |
| Otherfinancialexpenses | 1,283,952 | 3,588,587 |
| Total | 7,256,207 | 21,178,727 |
Fiscalinterestsubsidyduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.42Otherincome
| Item | 2022 | 2021 | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 4,100,000 | 4,100,000 | Governmentgrantsrelatedtoassets |
| Wineproductioncapacityconstructionproject | 400,000 | 400,000 | Governmentgrantsrelatedtoassets |
| XinjiangIndustrialRevitalizationandTechnologicalTransformationProject | 1,422,000 | 1,422,000 | Governmentgrantsrelatedtoassets |
| Specialsubsidiesforinfrastructuresupport | 1,060,000 | 1,060,000 | Governmentgrantsrelatedtoasse |
| ShandongPeninsulaBlueEconomicAreaconstructionfunds | - | 2,000,000 | Governmentgrantsrelatedtoassets |
| Others-Governmentgrantsrelatedtoassets | 2,152,842 | 4,451,324 | Governmentgrantsrelatedtoassets |
| Specialfundsforthedevelopmentofenterprises | 8,380,737 | 6,815,339 | Relatedtoincome |
| Taxrefunds | 7,592,342 | 13,747,870 | Relatedtoincome |
| WineIndustryDevelopmentProject | 2,773,000 | 186,000 | Relatedtoincome |
| Others-Governmentgrantsrelatedtoincome | 5,264,519 | 14,058,208 | Relatedtoincome |
| Total | 33,145,440 | 48,240,741 |
Otherincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.43Investmentlosses
Investmentlossesbyitem
| Item | 2022 | 2021 |
| Long-termequityinvestmentlossesunderequitymethod | (1,605,469) | (2,784,997) |
| Investmentlossarisingfromdisposaloflong-termequityinvestments | (1,842,325) | - |
| Total | (3,447,794) | (2,784,997) |
44Creditreversal/(losses)
Item
| Item | 2022 | 2021 |
| Accountsreceivable | 4,752,797 | (7,937,144) |
| Total | 4,752,797 | (7,937,144) |
45Impairmentlosses
| Item | 2022 | 2021 |
| Inventories | (578,745) | 689,420 |
| Goodwill | (5,210,925) | (20,563,671) |
| Total | (5,789,670) | (19,874,251) |
46Lossfromassetdisposals
| Item | 2022 | 2021 |
| Lossfromdisposaloffixedassets | 16,191,903 | 11,939,284 |
Lossfromdisposalofassetsduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.47Non-operatingincomeandnon-operatingexpenses
(1)Non-operatingincomebyitemisasfollows:
| Item | 2022 | 2021 |
| Insurancecompensation | 3,038,560 | 1,069,670 |
| Netincomefromfine | 566,334 | 1,068,169 |
| Inventorystocktakesurplus | - | 1,019,314 |
| Others | 3,227,915 | 2,057,151 |
| Total | 6,832,809 | 5,214,304 |
Non-operatingincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
(2)Non-operatingexpenses
| Item | 2022 | 2021 |
| Compensation,penaltyandfineexpenses | 723,161 | 1,761,266 |
| Donationsprovided | 693,625 | 900,000 |
| Lossesfromdamageorscrappingofnoncurrentassets | 867,796 | 3,425,709 |
| Others | 665,409 | 224,869 |
| Total | 2,949,991 | 6,311,844 |
Non-operatingexpensesduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
48Incometaxexpenses
Item
| Item | Note | 2022 | 2021 |
| Currenttaxexpensefortheyearbasedontaxlawandregulations | 176,922,552 | 248,208,920 | |
| Changesindeferredtaxassets/liabilities | (1) | 17,311,037 | (39,188,099) |
| Total | 194,233,589 | 209,020,821 |
(1)Theanalysisofchangesindeferredtaxissetoutbelow:
| Item | 2022 | 2021 |
| Originationoftemporarydifferences | 17,311,037 | (39,188,099) |
| Total | 17,311,037 | (39,188,099) |
(2)Reconciliationbetweenincometaxexpensesandaccountingprofit:
| Item | 2022 | 2021 |
| Profitbeforetaxation | 625,582,303 | 715,699,194 |
| Estimatedincometaxat25% | 156,395,576 | 178,924,799 |
| Effectofdifferenttaxratesappliedbysubsidiaries | 3,875,636 | 7,223,819 |
| Effectofnon-deductiblecosts,expenseandlosses | 6,207,982 | 9,480,180 |
| Effectofdeductiblelossesofdeferredtaxassetsnotrecognisedfortheyear | 26,681,652 | 12,159,985 |
| Deferredtaxassetswritten-off | 1,072,743 | 1,232,038 |
| Incometaxexpenses | 194,233,589 | 209,020,821 |
49Basicearningspershareanddilutedearningspershare
(1)Basicearningspershare
BasicearningspershareiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
| 2022 | 2021 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 428,681,411 | 500,102,606 |
| Weightedaveragenumberofordinarysharesoutstanding | 685,464,000 | 685,464,000 |
| Basicearningspershare(RMB/share) | 0.63 | 0.73 |
Weightedaveragenumberofordinarysharesiscalculatedasfollows:
| 2022 | 2021 | |
| Issuedordinarysharesatthebeginningoftheyear | 685,464,000 | 685,464,000 |
| Weightedaveragenumberofordinarysharesattheendoftheyear | 685,464,000 | 685,464,000 |
(2)TheGroupdoesnothaveanypotentialdilutiveordinarysharesforthelistedyears.
50Cashflowstatement
(1)Proceedsrelatingtootheroperatingactivities:
Item
| Item | 2022 | 2021 |
| Governmentgrants | 30,239,160 | 36,882,470 |
| Penaltyincome | 566,334 | 1,068,169 |
| Interestincomefrombank | 22,845,833 | 19,558,354 |
| Others | 8,174,080 | 31,633,258 |
| Total | 61,825,407 | 89,142,251 |
(2)Paymentsrelatingtootheroperatingactivities:
| Item | 2022 | 2021 |
| Sellinganddistributionexpenses | 443,486,326 | 430,962,311 |
| Generalandadministrativeexpenses | 92,510,326 | 128,747,237 |
| Others | 46,253,149 | 2,488,469 |
| Total | 582,249,801 | 562,198,017 |
(3)Proceedsrelatingtootherfinancingactivities:
| Item | 2022 | 2021 |
| Cashpaidforlease | 19,774,744 | 15,904,567 |
| Total | 19,774,744 | 15,904,567 |
51Supplementaryinformationoncashflowstatement
(1)Supplementtocashflowstatement
a.Reconciliationofnetprofittocashflowsfromoperatingactivities:
Item
| Item | 2022 | 2021 |
| Netprofit | 431,348,714 | 506,678,373 |
| Add:Credit/assetimpairmentlosses | 1,036,873 | 27,811,395 |
| Depreciationoffixedassetsandinvestmentproperty | 314,038,019 | 271,154,064 |
| Amortisationofintangibleassets | 25,766,271 | 19,914,969 |
| Amortisationoflong-termdeferredexpenses | 19,340,746 | 19,256,179 |
| Amortisationofbiologicalassets | 14,911,694 | 13,721,424 |
| DepreciationofROUassets | 22,131,592 | 16,773,427 |
| Lossesfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 17,059,699 | 15,364,993 |
| Financialexpenses | 25,170,658 | 26,782,042 |
| Royalty | 21,877,171 | 24,763,872 |
| Investmentlosses | 3,447,794 | 2,784,997 |
| Decrease/(Increase)indeferredtaxassets | 17,848,075 | (38,969,456) |
| Decreaseindeferredtaxliabilities | (537,038) | (218,643) |
| (Increase)/Decreaseingrossinventories | (101,354,740) | 143,615,551 |
| Decrease/(Increase)inoperatingreceivables | 165,687,398 | (187,412,623) |
| (Dncrease)/Iecreaseinoperatingpayables | (108,896,279) | 263,362,094 |
| Netcashflowsfromoperatingactivities | 868,876,647 | 1,125,382,658 |
b.Significantinvestingandfinancingactivitiesnotrequiringtheuseofcash:
| Item | 2022 | 2021 |
| Paymentofconstructioninprogressandotherlong-termassetsbybankacceptances | 40,584,152 | 60,224,230 |
c.Changeincashandcashequivalents:
| Item | 2022 | 2021 |
| Cashequivalentsattheendoftheyear | 1,612,753,600 | 1,502,327,029 |
| Less:Cashequivalentsatthebeginningoftheyear | 1,502,327,029 | 1,052,665,105 |
| Netincreaseincashandcashequivalents | 110,426,571 | 449,661,924 |
(3)Detailsofcashandcashequivalents
Item
| Item | 2022 | 2021 |
| Cashatbankandonhand | ||
| Including:Cashonhand | 47,954 | 71,486 |
| Bankdepositsavailableondemand | 1,612,705,646 | 1,502,255,543 |
| Closingbalanceofcashandcashequivalents | 1,612,753,600 | 1,502,327,029 |
52Assetswithrestrictiveownershiptitleorrightofuse
| Item | Openingbalance | Balanceattheendoftheyear | Reasonforrestriction |
| Cashatbankandonhand | 11,568,964 | 10,500,515 | TheCompanydepositsforlettersofcreditetc. |
| Accountreceivable(i) | 49,061,015 | 59,982,807 | Short-termborrowingsmortgagefromAtrio |
| Fixedassets | 313,012,605 | 303,897,124 | R&DCentremortgageforlong-termpayablesandlong-termandshort-termborrowings |
| Intangibleassets | 201,345,477 | 169,385,254 | R&DCentremortgageforlong-termpayables |
| Total | 574,988,061 | 543,765,700 |
(i)Asat31December2022,theamountofaccountsreceivablewithrestrictedownership
isEUR8,080,778,equivalentofRMB59,982,807whichreferstoaccountsreceivableAtrioconductedforfactoringfromBancodeSabadell,S.A.Etc.(31December2021:
EUR6,795,437,equivalentofRMB49,061,015)
VI.Interestsinotherentities1Interestsinsubsidiaries
(1)CompositionoftheGroup
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| XinjiangTianzhuWineCo.,Ltd.(“XinajingTianzhu”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | RMB75,000,000 | 60 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| EtablissementsRoulletFransac(“RoulletFransac”) | Cognac,France | Cognac,France | Trading | EUR2,900,000 | - | 100 | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| DicotPartners,S.L(“Dicot”) | Navarre,Spain | Navarre,Spain | Marketingandsales | EUR2,000,000 | 90 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| Vi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSpA.(“ChileIndomitaWineGroup”) | Santiago,Chile | Santiago,Chile | Marketingandsales | CLP31,100,000,000 | 85 | - | Acquiredthroughestablishmentorinvestment |
| KilikanoonEstatePtyLtd.(“AustraliaKilikanoonEstate”) | Adelaide,Australia | Adelaide,Australia | Marketingandsales | AUD6,420,000 | 97.5 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| BeijingChangyuSalesandDistributionCo.,Ltd(“BeijingSales”) | Beijing,China | Beijing,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiKylinPackagingCo.,Ltd.(“KylinPackaging”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB15,410,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChateauChangyu-CastelCo.,Ltd(“ChateauChangyu”)(c) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | USD5,000,000 | 70 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(Jingyang)WineCo.,Ltd.(“JingyangWine”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB1,000,000 | 90 | 10 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuPioneerWineSalesCo.,Ltd.(“SalesCompany”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB8,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd(“LangfangCastel”) | Langfang,Hebei,China | Langfang,Hebei,China | Manufacturing | USD6,108,818 | 39 | 10 | Acquiredthroughestablishmentorinvestment |
| Changyu(Jingyang)WineSalesCo.,Ltd.(“JingyangSales”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Marketingandsales | RMB1,000,000 | 10 | 90 | Acquiredthroughestablishmentorinvestment |
| LangfangChangyuPioneerWineSalesCo.,Ltd(“LangfangSales”) | Langfang,Hebei,China | Langfang,Hebei,China | Marketingandsales | RMB1,000,000 | 10 | 90 | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| ShanghaiChangyuSalesandDistributionCo.,Ltd.(“ShanghaiSales”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| BeijingChangyuAFIPAgriculturedevelopmentCo.,Ltd(“AgricultureDevelopment”) | Miyun,Beijing,China | Miyun,Beijing,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd.(“AFIP”)(d) | Beijing,China | Beijing,China | Manufacturing | RMB642,750,000 | 91.53 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineSalesCo.,Ltd.(“WinesSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 90 | 10 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuPioneerInternationalCo.,Ltd.(“PioneerInternational”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 70 | 30 | Acquiredthroughestablishmentorinvestment |
| HangzhouChangyuWineSalesCo.,Ltd.(“HangzhouChangyu”) | Hangzhou,Zhejiang,China | Hangzhou,Zhejiang,China | Marketingandsales | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”) | Yinchuan,Ningxia,China | Ningxia,China | Plating | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| HuanrenChangyuNationalWinesSalesCo.,Ltd.(“NationalWines”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Marketingandsales | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd.(“GoldenIcewineValley”)(e) | Benxi,Liaoning,China | Benxi,Liaoning,China | Manufacturing | RMB59,687,300 | 51 | - | Acquiredthroughestablishmentorinvestment |
| YantaiDevelopmentZoneChangyuTradingCo.,Ltd(“DevelopmentZoneTrading”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingAFIPMeetingCenter(“MeetingCenter”) | Miyun,Beijing,China | Miyun,Beijing,China | Services | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingAFIPTourismandCulture(“AFIPTourism”) | Miyun,Beijing,China | Miyun,Beijing,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”) | Ningxia,China | Ningxia,China | Manufacturing | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuChateauTinlotCo.,Ltd.(“ChateauTinlot”) | Yantai,Shandong,China | Yantai,Shandong,China | Wholesaleandretail | RMB400,000,000 | 65 | 35 | Acquiredthroughestablishmentorinvestment |
| XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | RMB550,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| NingxiaChateauChangyuMoserXVCo.,Ltd.(“ChateauNingxia”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Manufacturing | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShaanxiChateauChangyuRenaCo.,Ltd.(“ChateauChangan”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB20,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”)(f) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB805,000,000 | 88.65 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| Changyu(HuanRen)WineCo.,Ltd(“HuanRenWine”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Wineproductionprojecting | RMB5,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| XinjiangChangyuSalesCo.,Ltd(“XinjiangSales”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Marketingandsales | RMB10,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| NingxiaChangyuTradingCo.,Ltd(“NingxiaTrading”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| ShaanxiChangyuRenaWineSalesCo.,Ltd(“ShaanxiSales”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Marketingandsales | RMB3,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| PenglaiChangyuWineSalesCo.,Ltd(“PenglaiSales”) | Penglai,Shandong,China | Penglai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| LaizhouChangyuWineSalesCo.,Ltd(“LaizhouSales”) | Laizhou,Shandong,China | Laizhou,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| FrancsChampsParticipationsSAS(“FrancsChamps”) | Cognac,France | Cognac,France | Investmentandtrading | EUR32,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiRoulletFransacWineSalesCo.,Ltd.(“YantaiRoulletFransac”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineSalesCo.,Ltd.(“WineSalesCompany”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShaanxiChateauChangyuRenaTourismCo.,Ltd(“ChateauTourism”) | Xianxin,Shaanxi,China | Xianxin,Shaanxi,China | Tourism | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| LongkouChangyuWineSalesCo.,Ltd(“LongkouSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuCulturalTourismDevelopmentCo.,Ltd("CultureDevelopment") | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineCultureMuseumCo.,Ltd.("Museum") | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuCultureTourismProductionSalesCo.,Ltd.(“CultureSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuInternationalWindowoftheWineCityCo.,Ltd.(“WindowoftheWineCity”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB60,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiKOYABrandyChateauCo.,Ltd(“ChateauKOYA”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(Shanghai)InternationalDigitalMarketingCenterLimited(“DigitalMarketing”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB50,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| ShanghaiChangyuGuoquDigitalTechnologyCo.,Ltd.(“ShanghaiGuoqu”)(b) | Shanghai,China | Shanghai,China | Marketingandsales | RMB6,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| TianjinChangyuYixinDigitalTechnologyCo.,Ltd.(“TianjinYixin”)(b) | Tianjin,China | Tianjin,China | Marketingandsales | RMB10,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuYixinDigitalTechnologyCo.,Ltd.(“ShanghaiYixin”)(b) | Shanghai,China | Shanghai,China | Marketingandsales | RMB10,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| YantaiCreightonCateringCompanyLimited("CreightonCatering") | Yantai,Shandong,China | Yantai,Shandong,China | Services | RMB1,000,000 | 100 | Acquiredthroughestablishmentorinvestment | |
Reasonsfortheinconsistencybetweentheproportionofshareholdingsinasubsidiaryandtheproportionofvotingrights:
(a)ChateauChangyuisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,accountingfor70%ofChangyu
Chateau’sequityinterest.Throughagreementarrangement,theCompanyhasthefullpowertocontrolChangyuChateau’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementisterminatedon31December2022.(b)AFIPisalimitedliabilitycompanyestablishedbyYantaiDeanandBeijingQinglang.InJune2019,YantaiDeantransferred1.31%ofits
equitytoYantaiChangyu.Aftertheequitychange,theCompanyholds91.53%ofitsequity.Throughagreementarrangement,theCompanyhasthefullpowertocontrolAFIP’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon2September2024.(c)R&DCentreisajointventureestablishedbytheCompanyandCADF,accountingfor88.65%ofR&DCentre’sequityinterest.Through
agreementarrangementinNoteV.28,theCompanyhasthefullpowertocontrolR&DCentre’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon28February2025.Asat31December2021,remaininginvestmentofCADFaccountsfor11.53%oftheregisteredcapital.
(2)Materialnon-whollyownedsubsidiaries
NameoftheSubsidiary
| NameoftheSubsidiary | Proportionofownershipinterestheldbynon-controllinginterests | Comprehensiveincomeattributabletonon-controllinginterestsfortheyear | Dividenddeclaredtonon-controllingshareholdersduringtheyear | Balanceofnon-controllinginterestsattheendoftheyear |
| XinjiangTianzhu | 40% | 3,823,000 | - | (40,902,990) |
| AFIP | 8.47% | - | - | (56,409,393) |
| GoldenIcewineValley | 49% | 1,663,793 | - | (31,655,269) |
| IWCC | 15% | (4,458,010) | 1,906,484 | (57,264,506) |
(3)Keyfinancialinformationaboutmaterialnon-whollyownedsubsidiaries
Thefollowingtablesetsoutthekeyfinancialinformationoftheabovesubsidiarieswithoutoffsettinginternaltransactions,butwithadjustmentsmadeforthefairvalueadjustmentattheacquisitiondateandanydifferencesinaccountingpolicies:
XinjiangTianzhu
| XinjiangTianzhu | AFIP | GoldenIcewineValley | ChileIndomitaWineGroup | |||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| Currentassets | 33,532,307 | 22,642,150 | 251,902,602 | 249,865,391 | 15,243,035 | 24,018,451 | 221,192,234 | 196,488,084 |
| Non-currentassets | 23,267,653 | 43,852,510 | 399,165,555 | 414,851,163 | 24,918,242 | 24,450,344 | 320,233,623 | 314,756,823 |
| Totalassets | 56,799,960 | 66,494,660 | 651,068,157 | 664,716,554 | 40,161,277 | 48,468,795 | 541,425,857 | 511,244,907 |
| Currentliabilities | 131,477 | 130,108 | 22,424,425 | 27,459,352 | 8,064,396 | 12,976,418 | 140,793,252 | 130,027,677 |
| Non-currentliabilities | 5,336,114 | 5,336,114 | 3,020,582 | - | - | - | 11,311,586 | 8,906,387 |
| Totalliabilities | 5,467,591 | 5,466,222 | 25,445,007 | 27,459,352 | 8,064,396 | 12,976,418 | 152,104,838 | 138,934,064 |
| Operatingincome | - | - | 175,992,960 | 191,463,783 | 17,040,412 | 24,236,758 | 238,351,323 | 226,856,381 |
| Net(loss)/profit | (9,557,501) | (3,480,276) | (3,366,711) | 2,326,063 | (3,395,496) | (6,425,183) | 23,561,992 | 19,716,978 |
| Totalcomprehensiveincome | (9,557,501) | (3,480,276) | (3,366,711) | 2,326,063 | (3,395,496) | (6,425,183) | 29,720,066 | 3,284,057 |
| Cashflowsfromoperatingactivities | 11,772,488 | (1,292,713) | 8,265,568 | (4,754,748) | 6,541,363 | 4,744,413 | 18,971,851 | 99,234,532 |
VII.Riskrelatedtofinancialinstruments
TheGrouphasexposuretothefollowingmainrisksfromitsuseoffinancialinstrumentsinthenormalcourseoftheGroup’soperations:
-Creditrisk-Liquidityrisk-Interestraterisk-ForeigncurrencyriskThefollowingmainlypresentsinformationabouttheGroup’sexposuretoeachoftheaboverisksandtheirsources,theirchangesduringtheyear,andtheGroup’sobjectives,policiesandprocessesformeasuringandmanagingrisks,andtheirchangesduringtheyear.TheGroupaimstoseekappropriatebalancebetweentherisksandbenefitsfromitsuseoffinancialinstrumentsandtomitigatetheadverseeffectsthattherisksoffinancialinstrumentshaveontheGroup’sfinancialperformance.Basedonsuchobjectives,theGroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.1Creditrisk
Creditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischargeanobligation.TheGroup’screditriskisprimarilyattributabletocashatbank,receivables,debtinvestmentsandderivativefinancialinstrumentsenteredintoforhedgingpurposes.Exposuretothesecreditrisksaremonitoredbymanagementonanongoingbasis.ThecashatbankoftheGroupismainlyheldwithwell-knownfinancialinstitutions.ManagementdoesnotforeseeanysignificantcreditrisksfromthesedepositsanddoesnotexpectthatthesefinancialinstitutionsmaydefaultandcauselossestotheGroup.Asat31December2021,theGroup’smaximumexposuretocreditriskwhichwillcauseafinanciallosstotheGroupduetofailuretodischargeanobligationbythecounterparties.Inordertominimisethecreditrisk,theGrouphasadoptedapolicytoensurethatallsalescustomershavegoodcreditrecords.AccordingtothepolicyoftheGroup,creditreviewisrequiredforclientswhorequirecredittransactions.Inaddition,theGroupcontinuouslymonitorsthebalanceofaccountreceivabletoensurethere’snoexposuretosignificantbaddebtrisks.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecificapprovaloftheDepartmentofCreditControlintheGroup.Inaddition,theGroupreviewstherecoverableamountofeachindividualtradedebtateachbalancesheetdatetoensurethatadequateimpairmentlossesaremadeforirrecoverableamounts.Inthisregard,themanagementoftheGroupconsidersthattheGroup’screditriskissignificantlyreduced.
SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Concentrationsofcreditriskaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.Asat31December2022,48.8%oftheGrouptradereceivablesareduefromtopfivecustomers(31December2021:42.8%).ThereisnocollateralorothercreditenhancementonthebalanceofthetradereceivablesoftheGroup.2Liquidityrisk
Liquidityriskistheriskthatanenterprisewillencounterdifficultyinmeetingobligationsthataresettledbydeliveringcashoranotherfinancialasset.TheCompanyanditsindividualsubsidiariesareresponsiblefortheirowncashmanagement,includingshort-terminvestmentofcashsurplusesandtheraisingofloanstocoverexpectedcashdemands(subjecttoapprovalbytheCompany’sboardwhentheborrowingsexceedcertainpredeterminedlevels).TheGroup’spolicyistoregularlymonitoritsliquidityrequirementsanditscompliancewithlendingcovenants,toensurethatitmaintainssufficientreservesofcash,readilyrealisablemarketablesecuritiesandadequatecommittedlinesoffundingfrommajorfinancialinstitutionstomeetitsliquidityrequirementsintheshortandlongerterm.ThefollowingtablessetouttheremainingcontractualmaturitiesatthebalancesheetdateoftheGroup’sfinancialliabilities,whicharebasedoncontractualundiscountedcashflows(includinginterestpaymentscomputedusingcontractualratesor,iffloating,basedonratescurrentatthebalancesheetdate)andtheearliestdatetheGroupcanberequiredtopay:
Item
| Item | 2022Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 396,981,235 | - | - | - | 396,981,235 | 389,378,480 |
| Accountspayable | 503,323,746 | - | - | - | 503,323,746 | 503,323,746 |
| Otherpayables | 372,608,689 | - | - | - | 372,608,689 | 372,608,689 |
| Long-termloans(includingtheportionduewithinoneyear) | 75,108,083 | 70,927,517 | 115,864,799 | - | 261,900,399 | 231,124,009 |
| Long-termpayables(includingtheportionduewithinoneyear) | 22,546,674 | 22,282,674 | 20,039,452 | - | 64,868,800 | 64,000,000 |
| Leaseliability(includingtheportionduewithinoneyear) | 22,767,666 | 22,126,517 | 33,652,990 | 68,864,863 | 147,412,036 | 128,514,033 |
| Total | 1,393,336,093 | 115,336,708 | 169,557,241 | 68,864,863 | 1,747,094,905 | 1,688,948,957 |
Item
| Item | 2021Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 630,717,486 | - | - | - | 630,717,486 | 622,066,457 |
| Accountspayable | 493,453,816 | - | - | - | 493,453,816 | 493,453,816 |
| Otherpayables | 452,642,025 | - | - | - | 452,642,025 | 452,642,025 |
| Long-termloans(includingtheportionduewithinoneyear) | 20,586,762 | 125,114,353 | 112,380,675 | 15,506,135 | 273,587,925 | 250,567,080 |
| Long-termpayables(includingtheportionduewithinoneyear) | 22,810,674 | 22,546,674 | 42,322,126 | - | 87,679,474 | 86,000,000 |
| Leaseliability(includingtheportionduewithinoneyear) | 19,753,555 | 17,690,615 | 39,763,489 | 75,510,332 | 152,717,991 | 116,156,677 |
| Total | 1,639,964,318 | 165,351,642 | 194,466,290 | 91,016,467 | 2,090,798,717 | 2,020,886,055 |
3Interestraterisk
Interest-bearingfinancialinstrumentsatvariableratesandatfixedratesexposetheGrouptocashflowinterestrateriskandfairvalueinterestrisk,respectively.TheGroupdeterminestheappropriateweightingsofthefixedandfloatingrateinterest-bearinginstrumentsbasedonthecurrentmarketconditionsandperformsregularreviewsandmonitoringtoachieveanappropriatemixoffixedandfloatingrateexposure.
(1)Asat31December,theGroupheldthefollowinginterest-bearingfinancialinstruments:
Fixedrateinstruments:
Item
| Item | 2022 | 2021 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 2.00%-2.25% | 53,200,000 | 1.75%-2.25% | 53,200,000 |
| Financialliabilities | ? | ? | ||
| -Short-termloans | 0.65%-6.76% | (155,774,939) | 0.35%-3.35% | (172,066,457) |
| -Long-termloans(includingtheportionduewithinoneyear) | 1.50%-3.65% | (183,331,680) | 0.95%-3.28% | (193,475,080) |
| -Long-termpayables(includingtheportionduewithinoneyear) | 1.20% | (64,000,000) | 1.20% | (86,000,000) |
| -Leaseliability(includingtheportionduewithinoneyear) | 4.65% | (128,514,033) | 4.65% | (116,156,677) |
| Total | ? | (478,420,652) | (514,498,214) | |
Variablerateinstruments:
| Item | 2022 | 2021 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 0.25%-1.61% | 1,598,206,161 | 0.3%-1.82% | 1,513,824,507 |
| Financialliabilities | ? | ? | ||
| -Short-termloans | 1yearLPR0.005 | (200,000,000) | 1yearLPR0.005 | (450,000,000) |
| -Short-termloans | 1.81%-2.54% | (33,603,542) | - | - |
| -Long-termloans(includingtheportionduewithinoneyear) | - | -? | 90%of5yearLPR | (6,250,000) |
| -Long-termloans(includingtheportionduewithinoneyear) | BBSY+1.10% | (44,781,100) | BBSY+1.10% | (50,842,000) |
| -Long-termloans(includingtheportionduewithinoneyear) | 2.85%-3.35% | (3,011,228) | - | - |
| Total | 1,316,810,291? | 1,006,732,507 | ||
(2)Sensitivityanalysis
ManagementoftheGroupbelievesinterestrateriskonbankdepositisnotsignificant,thereforedoesnotdisclosesensitivityanalysisforinterestraterisk.
Asat31December2022,basedonassumptionsabove,itisestimatedthatageneralincreaseof50basispointsininterestrates,withallothervariablesheldconstant,woulddecreasetheGroup’sequitybyRMB1,055,235(2021:RMB1,901,595),andnetprofitbyRMB1,055,235(2021:RMB1,901,595).Thesensitivityanalysisaboveindicatestheinstantaneouschangeinthenetprofitandequitythatwouldariseassumingthatthechangeininterestrateshadoccurredatthebalancesheetdateandhadbeenappliedtore-measurethosefinancialinstrumentsheldbytheGroupwhichexposetheGrouptofairvalueinterestrateriskatthebalancesheetdate.Inrespectoftheexposuretocashflowinterestrateriskarisingfromfloatingratenon-derivativeinstrumentsheldbytheGroupatthebalancesheetdate,theimpactonthenetprofitandequityisestimatedasanannualisedimpactoninterestexpenseorincomeofsuchachangeininterestrates.4Foreigncurrencyrisk
Inrespectofcashatbankandonhand,accountsreceivableandpayable,short-termloansdenominatedinforeigncurrenciesotherthanthefunctionalcurrency,theGroupensuresthatitsnetexposureiskepttoanacceptablelevelbybuyingorsellingforeigncurrenciesatspotrateswhennecessarytoaddressshort-termimbalances.
(1)Asat31December,theGroup’sexposuretomaincurrencyriskarisingfromrecognised
assetsorliabilitiesdenominatedinforeigncurrenciesispresentedinthefollowingtables.Forpresentationpurposes,theamountsoftheexposureareshowninRenminbi,translatedusingthespotrateatthebalancesheetdate.Differencesresultingfromthetranslationofthefinancialstatementsdenominatedinforeigncurrencyareexcluded.
2022
| 2022 | 2021 | |||
| Balanceatforeigncurrency | BalanceatRMBequivalent | Balanceatforeigncurrency | BalanceatRMBequivalent | |
| Cashatbankandonhand | ||||
| -USD | 10,922 | 76,068 | 1,984,323 | 12,640,136 |
| -EUR | 67 | 494 | 106,216 | 766,848 |
| -HKD | 208 | 186 | ||
| Short-termloans | 15,490,000 | 98,759,593 | ||
| -USD | 13,750,000 | 95,792,132 | 15,490,000 | 98,759,593 |
(2)ThefollowingaretheexchangeratesforRenminbiagainstforeigncurrenciesappliedbythe
Group:
| Averagerate | Balancesheetdatemid-spotrate | |||
| 2022 | 2021 | 2022 | 2021 | |
| USD | 6.7573 | 6.4512 | 6.9646 | 6.3757 |
| EUR | 7.0985 | 7.6186 | 7.4229 | 7.2197 |
| HKD | 0.8583 | 0.8300 | 0.8933 | 0.8176 |
(3)Sensitivityanalysis
Assumingallotherriskvariablesremainedconstant,a5%strengtheningoftheRenminbiagainsttheUSdollarandEurodollarat31DecemberwouldhaveimpactontheGroup’sequityandnetprofitbytheamountshownbelow.whoseeffectisinRenminbiandtranslatedusingthespotrateattheyear-enddate:
Equity
| Equity | Netprofit | |
| 31December2022 | ||
| USD | 3,589,352 | 3,589,352 |
| EUR | (19) | (19) |
| HKD | (7) | (7) |
| Total | 3,589,326 | 3,589,326 |
| 31December2021 | ||
| USD | 4,305,973 | 4,305,973 |
| EUR | (38,342) | (38,342) |
| Total | 4,267,631 | 4,267,631 |
A5%weakeningoftheRenminbiagainsttheUSdollarandEurodollarat31Decemberwouldhavehadtheequalbutoppositeeffecttotheamountsshownabove,onthebasisthatallothervariablesremainedconstant.VIII.Fairvaluedisclosure
AllfinancialassetsandfinancialliabilitiesheldbytheGrouparecarriedatamountsnotmateriallydifferentfromtheirfairvalueat31December2022and31December2021.
IX.Relatedpartiesandrelatedpartytransactions1InformationabouttheparentoftheCompany
Companyname
| Companyname | Registeredplace | Businessnature | Registeredcapital | Shareholdingpercentage(%) | Percentageofvotingrights(%) | UltimatecontrollingpartyoftheCompany |
| ChangyuGroup | Yantai | Manufacturing | 50,000,000 | 50.4% | 50.4% | JointlycontrolledbyYantaiGuoFengInvestmentHoldingLtd,ILLVASARONNOHOLDINGSPA,InternationalFinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited. |
Therearenochangesontheregisteredcapitalandshareholdingpercentage/percentageofvotingrightsoftheparentcompany.
2InformationaboutthesubsidiariesoftheCompany
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVI.1.3Informationonotherrelatedparties
Nameofotherrelatedparties
| Nameofotherrelatedparties | Relatedpartyrelationship |
| YantaiShenmaPackagingCo.,Ltd.(“ShenmaPackaging”) | Controlledbythesameparentcompany |
| YantaiZhongyaPharmaceuticalTonicWineCo.,Ltd.(“ZhongyaPharmaceutical”) | Controlledbythesameparentcompany |
| WEMISSShanghai | AssociateoftheGroup |
| ChengduYufeng | AssociateoftheGroup |
| YantaiGuolong | Subsidiariesofthejointventure |
| Mirefleurs | Subsidiariesofthejointventure |
| CHATEAUDELIVERSAN(“LIVERSAN”) | Subsidiariesofthejointventure |
4Transactionswithrelatedparties
(1)Productprocurement
| Relatedparties | Natureoftransaction | 2022 | 2021 |
| ShenmaPackaging | Productprocurement | 82,187,388 | 80,754,599 |
| ZhongyaPharmaceutical | Productprocurement | 253,410 | 591,522 |
| Mirefleurs | Productprocurement | 7,054,664 | 6,822,330 |
| LIVERSAN | Productprocurement | 2,870,515 | 3,269,146 |
| Total | 92,365,977 | 91,437,597 |
(2)Salesofgoods
| Relatedparties | Natureoftransaction | 2022 | 2021 |
| ZhongyaPharmaceutical | Salesofgoods | 5,384,362 | 3,872,660 |
| WEMISSShanghai | Salesofgoods | 2,017,066 | 5,365,061 |
| ChengduYufeng | Salesofgoods | 614,302 | 2,677,707 |
| ShenmaPackaging | Salesofgoods | 110,048 | 287,930 |
| YantaiGuolong | Salesofgoods | 26,816,648 | - |
| Total | 34,942,426 | 12,203,358 |
(3)Purchaseoffixedassets
RelatedpartiesoftheCompany
| RelatedpartiesoftheCompany | Natureoftransaction | 2022 | 2021 |
| ShenmaPackaging | Purchaseoffixedassets | 4,245,929 | 4,101,232 |
| Total | 4,245,929 | 4,101,232 |
(4)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2022 | Leaseincomerecognisedin2021 | |
| ShenmaPackaging | Officesandplants | 1,549,410 | 1,492,550 | |
| ZhongyaPharmaceutical | Officesandplants | 590,476 | 522,936 | |
| Total | 2,139,886 | 2,015,486 | ||
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2022 | Leaseexpenserecognisedin2021 |
| ChangyuGroup | Officebuildings | 1,425,735 | 1,612,118 |
| ChangyuGroup | Officesandplants | 1,275,144 | 1,394,762 |
| ChangyuGroup | Officesandplants | 3,825,433 | 4,184,286 |
| ChangyuGroup | Officesandcommercialbuilding | 6,145,488 | 7,057,143 |
| Total | 1,425,735 | 14,248,309 |
(5)Remunerationofkeymanagementpersonnel
| Item | 2022 | 2021 |
| Remunerationofkeymanagementpersonnel | 10,265,674 | 12,495,933 |
(6)Otherrelatedpartytransactions
| Relatedparties | Natureoftransaction | 2022 | 2021 |
| ChangyuGroup | Royalty | 21,877,171 | 24,763,872 |
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theCompanymayusecertaintrademarksofChangyuGroupCompany,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup’sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.Accordingtotheaboveroyaltyagreement,ChangyuGroupcollectedatotalofRMB576,507,809forroyaltyfrom2013to2019,ofwhich51%wasusedtopromotetrademarkssuchasChangyuandtheproductofthiscontract,totallingRMB294,018,093.TheamountisusedforpromotionofChangyuandothertrademarksandtheproductsofthiscontract,totallingRMB62,250,368,thedifferenceisRMB231,768,615(taxinclusive).On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGroup
paysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon
0.98%ofthesalesvolumeoftheGroup‘scontractproductsusingthistrademark.Thearticle6.3isamendedto:TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.Inaddition,inaccordancewithagreementtheGroupsignedwithChangyuGroupinNovember2019,ChangyuGrouppromisedtooffsetthedifferenceofRMB231,768,615abovewiththeroyaltyforfouryears,i.e.from2019to2022.Ifitisnotsufficientfordeduction,therestwillberepaidinaone-offmannerin2023.Ifthereissurplus,thesurpluspartoftheroyaltywillbechargedfromtheyearwhenthesurplusoccurs.TheGroupincurredatrademarkusagefeeofRMB21,877,171thisyear.5Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
Item
| Item | Relatedparty | 2022 | 2021 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivable | ZhongyaPharmaceutical | 2,627,473 | 8,091 | 287,788 | 956 |
| Othercurrentassets | ChangyuGroup | 120,930,641 | - | - | - |
| Othernon-currentassets | ChangyuGroup | - | - | 144,120,442 | - |
| Otherreceivables | ShenmaPackaging | - | - | 341,880 | - |
| Accountsreceivable | YantaiGuolongl | 2,627,473 | 8,091 | - | - |
Payablestorelatedparties
| Item | Relatedparty | 2022 | 2021 |
| Accountspayable | ZhongyaPharmaceutical | 36,600,233 | 30,184,072 |
| Accountspayable | ZhongyaPharmaceutica | 5,365,862 | - |
| Accountspayable | ChengduYufeng | 143,659 | 344,464 |
| Accountspayable | ChangyuGroup | 19,434,600 | 19,434,600 |
| Contractliabilities | ZhongyaPharmaceutica | 240 | 653 |
| Otherpayables | ShenmaPackaging | 471,869 | - |
?
X.Capitalmanagement
TheGroup’sprimaryobjectiveswhenmanagingcapitalaretosafeguarditsabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsforshareholders,bypricingproductsandservicescommensuratelywiththelevelofriskandbysecuringaccesstofinanceatareasonablecost.TheGroup’scapitalstructureisregularlyreviewedandmanagedtoachieveanoptimalstructureandreturnforshareholders.FactorsfortheGroup’sconsiderationinclude:itsfuturefundingrequirements,capitalefficiency,actualandexpectedprofitability,expectedcashflows,andexpectedcapitalexpenditure.AdjustmentsaremadetothecapitalstructureinlightofchangesineconomicconditionsaffectingtheGroup.NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.
XI.Commitmentsandcontingencies1Significantcommitment
(1)Capitalcommitments
Item
| Item | 2022 | 2021 |
| Long-termassetsacquisitioncommitment | 45,698,000 | 84,963,700 |
| Total | 45,698,000 | 84,963,700 |
(2)Operatingleasecommitments
Asat31December,thetotalfutureminimumleasepaymentsundernon-cancellable
operatingleasesoftheGroup’spropertieswerepayableasfollows:
| Item | 2022 | 2021 |
| Within1year(inclusive) | - | 651,000 |
| Total | - | 651,000 |
2Contingencies
TheGroupdonothaveanysignificantcontingenciesasatbalancesheetdate.XII.Subsequentevents1Distributionofdividendsonordinarysharesapprovedafterthebalancesheetdate
AccordingtotheproposaloftheBoardofDirectorson11April2023,theCompanyintends
todistributecashdividendtotalingRMB308,458,800toallshareholdersof685,464,000
capitalsharesfortheyearended31December2021onthebasisofRMB4.5(includingtax)
forevery10shares.TheproposalissubjecttotheapprovalbytheShareholders’meeting.
Thisdistributionofprofitincashhasnotbeenrecognisedasaliabilityatthebalancesheet
date.2Transferofthenon-controllinginterestsafterbalancesheetdate
On16January2023,the4thmeetingofthe9thBoardofDirectorsoftheCompanyreviewed
andapprovedtheProposalontheTransferofEquityofLiaoningChangyuGoldenValley
IcewineChateauCo.,Ltd.(“IcewineChateau”).On30January2023,theCompanysignedthe
EquityTransferAgreementwithCanadaOroseIcewineCo.,Ltd.(“OroseIcewineCompany”)
andHuanrenManchuAutonomousCountyOroseChateauCo.,Ltd.(OroseChateau
Company)(桓仁满族自治县奥罗丝酒庄有限公司),theCompanyplannedtotransfer25%
equityoftheIcewineChateauheldbyOroseIcewineCompany,intheamountofRMB
16,671,800.00,and24%equityoftheIcewineChateauheldbyOroseChateauCompany,in
theamountofRMB16,075,000.00.
XIII.Othersignificantitems1Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparklingwineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup’sinternalorganisationstructure,managementrequirementsandinternalreportingsystem,theGroup’soperationisdividedintofiveparts:China,Spain,France,ChileandAustralia.Themanagementperiodicallyevaluatessegmentresults,inordertoallocateresourcesandevaluateperformances.In2022,over82%ofrevenue,morethan91%ofprofitandover91%ofnon-currentassetsderivedfromChina/arelocatedinChina.Therefore,theGroupdoesnotneedtodiscloseadditionalsegmentreportinformation.XIV.NotestotheCompany’sfinancialstatements1Billsreceivable
Classificationofbillsreceivable
Item
| Item | 2022 | 2021 |
| Bankacceptancebills | - | 9,800,000 |
| Total | - | 9,800,000 |
2Receivablesunderfinancing
| Item | Note | 2022 | 2021 |
| Billsreceivable | (1) | 41,061,417 | 62,411,636 |
| Total | 41,061,417 | 62,411,636 |
(1)ThepledgedbillsreceivableoftheCompanyattheendoftheyear
Asat31December2022,therewasnopledgedbillsreceivable(31December2021:Nil).
(2)Outstandingderecognisedendorsedbillsthathavenotmaturedattheendoftheyear
| Item | Amountrecognisedatyearend |
| Bankacceptancebills | 105,149,583 |
| Total | 105,149,583 |
Asat31December2022,derecognisedbillsendorsedbytheCompanytootherpartieswhicharenotyetdueattheendoftheperiodisRMB105,149,583(31December2021:
RMB65,893,889).Thenotesareusedforpaymenttosuppliers.TheCompanybelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theCompanywouldundertakelimitedliabilityforthenotes.3Otherreceivables
| Note | 31December2022 | 31December2021 | |
| Dividendsreceivable | (1) | 250,000,000 | - |
Others
| Others | (2) | 470,176,320 | 398,072,976 |
| Total | 720,176,320 | 398,072,976 |
(1)Dividendsreceivable
| Item | 31December2022 | 31December2021 |
| Dividendstosubsidiaries | 250,000,000 | - |
| Total | 250,000,000 | - |
(2)Others
(a)Othersbycustomertype:
| Customertype | 31December2022 | 31December2021 |
| Amountsduefromsubsidiaries | 470,128,362 | 397,998,281 |
| Amountsduefromrelatedparties | 47,958 | 74,695 |
| Sub-total | 470,176,320- | 398,072,976 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 470,128,362 | 398,072,976 |
(b)Theageinganalysisisasfollows:
| Ageing | 2022 | 2021 |
| Within1year(inclusive) | 470,071,848 | 397,936,651 |
| Over1yearbutwithin2years(inclusive) | - | 11,853 |
| Over2yearsbutwithin3years(inclusive) | 104,472 | 104,472 |
| Over3years | - | 20,000 |
| Sub-total | 470,176,320 | 398,072,976 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 470,176,320 | 398,072,976 |
Theageingiscountedstartingfromthedate.(c)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2022,nobadanddoubtfuldebtprovisionwasmadeforother
receivables(31December2021:Nil).
Asat31December2022,theCompanyhasnootherreceivableswrittenoff(31
December2021:Nil).
(d)Otherscategorisedbynature
Natureofotherreceivables
| Natureofotherreceivables | 2022 | 2021 |
| Amountsduefromsubsidiaries | 470,128,362 | 397,998,281 |
| Others | 47,958 | 74,695 |
| Sub-total | 470,176,320 | 398,072,976 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 470,128,362 | 398,072,976 |
(e)Fivelargestothers-bydebtorattheendoftheyear
| Debtor | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| SalesCompany | Amountsduefromsubsidiaries | 192,349,897 | Within1year | 40.9 | - |
| R&DCentre | Amountsduefromsubsidiaries | 16,085,524 | Within1year | 3.4 | - |
| DigitalMarketing | Amountsduefromsubsidiaries | 12,513,258 | Within1year | 2.7 | - |
| ChateauKOYA | Amountsduefromsubsidiaries | 9,455,430 | Within1year | 2.0 | - |
| ChateauChangyu | Amountsduefromsubsidiaries | 7,040,550 | Within1year | 1.5 | - |
| Total | 237,444,659 | 50.5 | - |
4Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
| Item | 2022 | 2021 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| Investmentsinsubsidiaries | 7,703,535,027 | - | 7,703,535,027 | 7,593,535,027 | - | 7,593,535,027 |
| Investmentsinassociates | 2,318,351 | - | 2,318,351 | 5,886,467 | - | 5,886,467 |
| Total | 7,705,853,378 | - | 7,705,853,378 | 7,599,421,494 | - | 7,599,421,494 |
(2)Investmentsinsubsidiaries:
Subsidiary
| Subsidiary | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Balanceattheendoftheyear |
| XinjiangTianzhu | 60,000,000 | - | - | 60,000,000 |
| KylinPackaging | 23,176,063 | - | - | 23,176,063 |
| ChateauChangyu | 28,968,100 | - | - | 28,968,100 |
| PioneerInternational | 3,500,000 | - | - | 3,500,000 |
| NingxiaGrowing | 36,573,247 | - | - | 36,573,247 |
| NationalWines | 2,000,000 | - | - | 2,000,000 |
| GoldenIcewineValley | 30,440,500 | - | - | 30,440,500 |
| ChateauBeijing | 588,389,444 | - | - | 588,389,444 |
| SalesCompany | 7,200,000 | - | - | 7,200,000 |
| LangfangSales | 100,000 | - | - | 100,000 |
| LangfangCastel | 19,835,730 | - | - | 19,835,730 |
| WineSales | 4,500,000 | - | - | 4,500,000 |
| ShanghaiMarketing | 1,000,000 | - | - | 1,000,000 |
| BeijingSales | 850,000 | - | - | 850,000 |
| JingyangSales | 100,000 | - | - | 100,000 |
| JingyangWine | 900,000 | - | - | 900,000 |
| NingxiaWine | 222,309,388 | - | - | 222,309,388 |
| ChateauNingxia | 453,463,500 | - | - | 453,463,500 |
| ChateauTinlot | 212,039,586 | - | - | 212,039,586 |
| ChateauShihezi | 812,019,770 | - | - | 812,019,770 |
| ChateauChangan | 803,892,258 | - | - | 803,892,258 |
| R&DCentre | 3,288,906,445 | - | - | 3,288,906,445 |
| HuanrenWine | 22,200,000 | - | - | 22,200,000 |
| WineSalesCompany | 5,000,000 | - | - | 5,000,000 |
| FrancsChamps | 236,025,404 | - | - | 236,025,404 |
| Dicot | 233,142,269 | - | - | 233,142,269 |
| ChileIndomitaWineGroup | 274,248,114 | - | - | 274,248,114 |
| AustraliaKilikanoonEstate | 129,275,639 | - | - | 129,275,639 |
| DigitalMarketing | 1,000,000 | - | - | 1,000,000 |
| CultureDevelopment | 92,479,570 | - | - | 92,479,570 |
| ChateauKoya | - | 110,000,000 | - | 110,000,000 |
| Total | 7,593,535,027 | 110,000,000 | - | 7,703,535,027 |
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVI.
(3)Investmentsinassociates:
| Subsidiary | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Investmentlossesrecognizedundertheequitymethod | Balanceattheendoftheyear |
| WEMISSShanghai | 2,366,811 | - | - | (48,460) | 2,318,351 |
| YantaiSantaiRealEstateDevelopmentCo.,Ltd | 3,519,656 | - | (3,519,656) | - | - |
| Total | 5,886,467 | - | (3,519,656) | (48,460) | 2,318,351 |
5Operatingincomeandoperatingcosts
Item
| Item | 2022 | 2021 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 672,635,481 | 575,896,372 | 576,706,055 | 470,719,232 |
| Otheroperatingactivities | 2,426,940 | 1,420,479 | 2,189,747 | 1,439,506 |
| Total | 675,062,421 | 577,316,851 | 578,895,802 | 472,158,738 |
| Including:Revenuefromcontractswithcustomers | 672,635,481 | 575,896,372 | 576,706,055 | 470,719,232 |
| Rentincome | 2,426,940 | 1,420,479 | 2,189,747 | 1,439,506 |
(1)Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2022 | 2021 |
| Bytypeofgoodsorservices | ||
| -Liquor | 672,635,481 | 576,706,055 |
| Bytimingoftransferringgoodsorservices | ||
| -Revenuerecognisedatapointintime | 672,635,481 | 576,706,055 |
6Investmentincome
| Item | 2022 | 2021 |
| Incomefromlong-termequityinvestmentsaccountedforusingcostmethod | 738,407,264 | 867,880,564 |
| Lossfromlong-termequityinvestmentsaccountedforusingequitymethod | (48,460) | (357,386) |
| Lossfromlong-termequityinvestmentsaccountedfordisposaloflong-termequityinvestment | (1,842,325) | - |
| Total | 736,516,479 | 867,523,178 |
7Transactionswithrelatedparties
(1)Productprocurement
| Relatedparties | Natureoftransaction | 2022 | 2021 |
| Subsidiaryoftheparentcompany | Productprocurement | 154,806,785 | 117,808,977 |
| OtherrelatedpartiesoftheCompany | Productprocurement | 42,578,235 | 30,002,566 |
| Total | 197,385,020 | 147,811,543 |
(2)Salesofgoods
| Relatedparties | Natureoftransaction | 2022 | 2021 |
| Subsidiaryoftheparentcompany | Salesofgoods | 504,080,073 | 576,708,399 |
| OtherrelatedpartiesoftheCompany | Salesofgoods | 2,952,493 | 3,017,548 |
| Total | 507,032,566 | 579,725,947 |
(3)Guarantee
TheCompanyastheguarantor
Guaranteeholder
| Guaranteeholder | Currency | Amountofguarantee | Inceptiondateofguarantee | Maturitydateofguarantee | Guaranteeexpired(Y/N) |
| R&DCentre | RMB | 500,000,000 | 08March2017 | 08March2022 | Y |
| AustraliaKilikanoonEstate | AUD | 17,550,000 | 13December2018 | 13December2023 | N |
(4)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2022 | Leaseincomerecognisedin2021 |
| OtherrelatedpartiesoftheCompany | Officesandplants | 2,139,886 | 2,015,486 |
| Subsidiaryoftheparentcompany | Officesbuildings | 85,714 | 85,714 |
| Total | 2,225,600 | 2,101,200 |
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2022 | Leaseexpenserecognisedin2021 |
| OtherrelatedpartiesoftheCompany | Officebuildings | 1,275,144 | 1,394,762 |
| Total | Officebuildings | 1,275,144 | 1,394,762 |
8Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
| Item | Relatedparty | 2022 | 2021 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivables | OtherrelatedpartiesoftheCompany | 2,301,505 | 7,805 | - | - |
| Otherreceivables | Subsidiaryoftheparentcompany | 720,128,362 | - | 397,998,281 | - |
| Othernon-currentassets | Subsidiaryoftheparentcompany | 1,850,200,000 | - | 2,023,500,000 | - |
Payablestorelatedparties
| Item | Relatedparty | 2022 | 2021 |
| Accountspayable | OtherrelatedpartiesoftheCompany | 35,944,149 | 28,014,000 |
| Otherpayables | Subsidiaryoftheparentcompany | 421,781,524 | 362,651,747 |
| Otherpayables | OtherrelatedpartiesoftheCompany | 471,869 | - |
XV.Non-recurringprofitandlossstatementin2022
Item
| Item | Amount | |
| (1) | Profitandlossfromdisposalofnon-currentassets | (18,902,024) |
| (2) | Governmentgrantsrecognisedthroughprofitorloss(excludingthosehavingcloserelationshipswiththeGroup’soperationandenjoyedinfixedamountorquantityaccordingtouniformnationalstandard) | 33,145,440 |
| (3) | Othernon-operatingincomeandexpensesbesidesitemsabove | 4,750,614 |
| Sub-total | 18,994,030 | |
| (4) | Taxeffect | (4,695,173) |
| (5) | Effectonnon-controllinginterestsaftertaxation | 551,195 |
| Total | 14,850,052 | |
Note1:Extraordinarygainandlossitems(1)to(3)listedabovearepresentedintheamount
beforetaxation.XVI.Returnonnetassetsandearningspershare
1Calculationofearningspershare
(1)Basicearningspershare
Forcalculationofthebasicearningspershare,pleaserefertoNoteV.49.
(2)Basicearningspershareexcludingextraordinarygainandloss
BasicearningspershareexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
| 2022 | 2021 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 428,681,411 | 500,102,606 |
| ExtraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany | 14,850,052 | 27,866,644 |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 413,831,359 | 472,235,962 |
| Weightedaveragenumberofordinarysharesoutstanding | 685,464,000 | 685,464,000 |
| Basicearningspershareexcludingextraordinarygainandloss(RMB/share) | 0.60 | 0.69 |
(3)Dilutedearningspershare
Duringthereportingperiod,theCompanydidnothavedilutivepotentialordinaryshares.
2Calculationofweightedaveragereturnonnetassets
(1)Weightedaveragereturnonnetassets
WeightedaveragereturnonnetassetsiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:
2022
| 2022 | 2021 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 428,681,411 | 500,102,606 |
| Weightedaverageamountofconsolidatednetassets | 10,487,764,058 | 10,329,718,533 |
| Weightedaveragereturnonnetassets | 4.09% | 4.84% |
Calculationofweightedaverageamountofconsolidatednetassetsisasfollows:
| 2022 | 2021 | |
| Consolidatednetassetsatthebeginningoftheyear | 10,447,884,183 | 10,267,832,644 |
| Impactofchangesinaccountingpolicies | - | (10,582,161) |
| EffectofconsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 219,814,175 | 232,409,650 |
| Effectofsharesrepurchased(NoteV.36) | (179,934,300) | (159,941,600) |
| Weightedaverageamountofconsolidatednetassets | 10,487,764,058 | 10,329,718,533 |
(2)Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss
WeightedaveragereturnonnetassetsexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:
| 2022 | 2021 | |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 413,831,359 | 472,235,962 |
| Weightedaverageamountofconsolidatednetassets(Note) | 10,487,764,058 | 10,329,718,533 |
| Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss | 3.95% | 4.57% |
YantaiChangyuPioneerWineCo.,Ltd.
BoardofDirectorsApril13,2023