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张裕B:2022年年度报告(英文版) 下载公告
公告日期:2023-04-13

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

NameofdirectornotattendingthemeetingpersonallyPositionofdirectornotattendingthemeetingpersonallyReasonofnotattendingthemeetingpersonallyNameofentrustee
AldinoMarzoratiDirectorOnabusinesstripEnricoSivieri

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

DefinitionItemReferstoDefinitionContent
Company/TheCompanyReferstoYantaiChangyuPioneerWineCo.,Ltd.
ChangyuGroup/ControllingShareholderReferstoYantaiChangyuGroupCo.,Ltd.
CSRCReferstoChinaSecuritiesRegulatoryCommission
SSEReferstoShenzhenStockExchange
KPMGHuazhenReferstoKPMGHuazhenLLP(LimitedLiabilityPartnership)
CNYReferstoChineseYuan

II.BriefIntroductionfortheCompanyandMainFinancialIndicators

1.Company’sinformation

StockAbbreviation

StockAbbreviationChangyuA,ChangyuBStockCode000869,200869
StockAbbreviationafterAlteration-
PlaceofStockListingShenzhenStockExchange
LegalNameinChinese烟台张裕葡萄酿酒股份有限公司
AbbreviationofChineseName张裕
LegalNameinEnglishYANTAICHANGYUPIONEERWINECOMPANYLIMITED
AbbreviationofEnglishNameCHANGYU
LegalRepresentativeHongjiangZhou
RegisteredAddress56DamaRoad,Yantai,Shandong,China
PostalCodeofRegisteredAddress264000
HistoricalChangeinRegisteredAddressNo
OfficeAddress56DamaRoad,Yantai,Shandong,China
PostalCodeofOfficeAddress264000
Websitehttp://www.changyu.com.cn
E-mailwebmaster@changyu.com.cn

2.Contactpersonandinformation

SecretarytotheBoardofDirectorsAuthorizedRepresentativeofSecuritiesAffairs
NameMr.JianxunJiangMr.TingguoLi
Address56DamaRoad,Yantai,Shandong,China56DamaRoad,Yantai,Shandong,China
Tel.0086-535-66027610086-535-6633656
Fax.0086-535-66336390086-535-6633639
E-mailjiangjianxun@changyu.com.cnstock@changyu.com.cn

3.Informationdisclosureandfilinglocation

StockexchangewebsitefordisclosingannualreportShenzhenStockExchange(http://www.szse.cn)
MedianameandwebsitefordisclosingannualreportChinaSecuritiesNewspaper,SecuritiesTimes,HongKongCommercialDailyandCNINFOwebsite(http://www.cninfo.com.cn)
FilinglocationoftheCompany’sannualreportBoardofDirectors’OfficeoftheCompany,56DamaRoad,Yantai,Shandong

4.Registrationchanges

ChangesforthemainbusinessesoftheCompanysinceitwaslisted

ChangesforthemainbusinessesoftheCompanysinceitwaslistedThebusinessscopedeterminedbytheCompanywhenitwasestablishedonSeptember18th,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.
ChangesforallpreviouscontrollingshareholdersNo

5.OtherrelevantinformationTheaccountingfirmappointedbytheCompany

NameKPMGHuazhenLLP
AddressLevel8,No.2EastWingofDongfangSquare,No.1EastChang’anStreet,Beijing
NameofsignatoryaccountantsMs.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

20222021Increase/decreasecomparedwithlastyear(%)2020
Operatingrevenue(CNY)3,918,941,1603,953,067,583-0.86%3,395,402,001
Netprofitattributedtoshareholdersofthelistedcompany(CNY)428,681,411500,102,606-14.28%470,860,587
Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses(CNY)413,831,359472,235,962-12.37%397,655,187
Netcashflowsfromoperatingactivities(CNY)868,876,6471,125,382,658-22.79%505,146,673
Basicearningspershare(CNY)0.630.73-13.70%0.69
Dilutedearningspershare(CNY)0.630.73-13.70%0.69
Weightedaverageforearningrateofnetassets(CNY)4.09%4.84%-0.75%4.57%
December31,2022December31,2021Increase/decreasecomparedwithlastyear-end(%)December31,2020
Totalassets(CNY)13,171,506,37813,472,009,754-2.23%13,102,481,541
Netassetsattributedtoshareholdersofthelistedcompany(CNY)10,579,053,73310,447,884,1831.26%10,267,832,644

(1)DifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandards

□Available?NotavailableTherearenodifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandardsduringthereportperiod.

(2)DifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandards

□Available?NotavailableTherearenodifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandardsduringthereportperiod.

8.Keyfinancialindicatorsbyquarter

Unit:

CNY

stQuarter

1stQuarter2ndQuarter3rdQuarter4thQuarter
Operatingrevenue1,165,989,959787,102,176857,930,8901,107,918,135
Netprofitattributedtoshareholdersofthelistedcompany290,587,74467,871,85975,890,351-5,668,543
Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses284,168,65860,140,36468,081,7111,440,626
Netcashflowsfromoperatingactivities299,300,737306,972,858132,417,260130,185,792

Whethertherearesignificantdifferencesbetweentheabovementionedfinancialindicatorsortheirsumandtherelatedfinancialindicatorsinthequarterlyreportsandsemi-annualreportsdisclosedbytheCompany.□Yes?No

9.Itemandamountofnon-recurringprofitandloss?Available□Notavailable

Unit:CNY

Item202220212020Explanation
Profitsandlossesondisposalofnon-currentassets(includingtheprovisionforassetimpairmentwrite-offpart)-18,902,024-15,364,993-1,165,162
Governmentgrantsrecordedintothecurrentprofitsandlosses(exceptforthosegovernmentgrantsthatarecloselyrelatedtotheenterprise’snormaloperation,inlinewithnationalpolicyprovisionsandinaccordancewithcertainstandardquotaorrationcontinuedtoenjoy)33,145,44048,240,74173,180,848
Incomegeneratedfromwhentheinvestmentcostofthesubsidiary,affiliatedbusinessandjointventureislessthanthefairvalueofidentifiablenetassetsoftheinvestedentityshould0

beenjoyedwhentheinvestmentisacquired

beenjoyedwhentheinvestmentisacquired
Currentnetprofitorlossfromthebeginningoftheperiodtothemergerdateofsubsidiariesarisingfrommergerunderthesamecontrol12,715,544
Othernon-operatingrevenuesandexpendituresinadditiontotheaforementioneditems4,750,6142,328,16910,098,551
Less:Incometaxeffect4,695,1737,306,78721,595,671
Minorityshareholders’equityeffect(aftertaxes)-551,19530,48628,710
Total14,850,05227,866,64473,205,400--

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

ProducernameFoodcategoryObtainingtimeObtainingmethodFoodproductionlicensenumber
YantaiChangyuPioneerWineCo.,Ltd.Alcohol2021.06.01ApprovalfromgovernmentauthoritySC11537060100050
BeijingChateauChangyuAFIPGlobalCo.,Ltd.Alcohol2022.08.22ApprovalfromgovernmentauthoritySC11511280920745
LiaoningChangyuGoldenIcewineValleyCo.,Ltd.Alcohol2021.03.25ApprovalfromgovernmentauthoritySC11521052200370
NingxiaChateauChangyuMoserXVCo.,Ltd.Alcohol2018.01.25ApprovalfromgovernmentauthoritySC11564010500657
XinjiangChateauChangyuBaronBalboaCo.,Ltd.Alcohol2017.08.25ApprovalfromgovernmentauthoritySC11565900100392
YantaiChateauChangyu-CastelCo.,Ltd.Alcohol2021.06.08ApprovalfromgovernmentauthoritySC11537063600172
ShaanxiChateauChangyuRenaCo.,Ltd.Alcohol2020.10.19ApprovalfromgovernmentauthoritySC11561040400532
YantaiChateauKoyaBrandyCo.,Ltd.Alcohol2021.01.11ApprovalfromgovernmentauthoritySC11537063601165

(3)ExplanationforothermajoreventsDuringthereportperiod,theredidnotexistthetrademarkownershipdispute,foodqualityissueorfoodsafetyincidentetc.thathadasignificantimpactontheCompany.MajorsalesmodeTheCompany’smainsalesmodewasthedistributionmode,andmainsaleschannelwasofflinesales,thatis,theCompany’sproductsweredistributedtosalesterminalsthroughapproximately4,000distributorsathomeandabroadandultimatelyprovidedtoconsumers.

Distributionmode?Available□Notavailable

(1)Situationofchangeinthenumberofdistributors

Region

RegionNumberatthebeginningof2022IncreasednumberduringthisreportperiodNumberattheendof2022
EasternChina1857791936
SouthChina56540605
CentralChina476-29447
NorthChina365-7358
NorthwestChina184-14170
SouthwestChina493-10483
NortheastChina318-6312
HongKong,Macao,TaiwanChinaandoverseas57329602
Total4831824913

(2)TheCompanyanddistributorstookcashspotsettlement,andmainlyadoptedbuyoutdistributionmode.Theratioofsalesinself-ownedexclusiveshopexceeds10%

□Available?NotavailableSalesofonlinedirectselling?Available□Notavailable

Salesmodel20222021
Operatingincome(CNY)Operatingcost(CNY)GrossmarginOperatingincome(CNY)Operatingcost(CNY)Grossmargin
Distribution3,272,506,7521,396,195,48557.34%3,263,303,8001,349,422,48158.65%
Directsales646,434,408284,599,247284,599,24755.97%689,763,784298,367,39356.74%
Total3,918,941,1601,680,794,73257.11%3,953,067,5841,647,789,87458.32%

Thechangeinsalespricesofmajorproductsaccountingformorethan10%oftotaloperatingincomeincurrentreportperiodexceeds30%comparedwiththoseinlastreportperiod

□Available?NotavailableProcurementmodeandprocurementcontent

Unit:CNY’0000

Procurementmode

ProcurementmodeProcurementcontentTheamountofthemainprocurementcontent
PricedeterminedbyqualitycomparisonwithstandardpriceitemsRawmaterialssuchasgrapes/bulkwine66,633.60
Tender/PricedeterminedbyqualitycomparisonwithstandardpriceitemsPackagingmaterials41,755.50
Tender/PricedeterminedbyqualitycomparisonwithstandardpriceitemsBrewingmaterials2,364.30
Tender/PricedeterminedbyqualitycomparisonwithstandardpriceitemsVineyardsupplies1,140.30
ContractFuelandpower4,739.90
PricedeterminedbyqualitycomparisonwithstandardpriceitemsOtherwinesandderivatives2,736

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

DescriptionIncreaseordecreaseattheendoftheperiodovertheendoflastyearCauseofsignificantchanges
Operatingrevenue-0.86%Mainlybecauseofdecreaseinsalesvolume
Operatingcost2.88%Mainlybecauseofincreaseintheprocurementcostofrawmaterialsandpackagingmaterials
Salesexpense3%Mainlybecauseofincreasedmarketingexpenseandservicefeeresultingfromincreasedmarketinvestment
Managementexpense-3.84%Mainlybecauseoftheyear-on-yeardecreaseinrentalexpenseandcontractfee
R&Dexpense41.32%Mainlybecauseofincreaseinresearchinput,purchasingandupdatingscientificequipment
Financialexpense-65.74%Mainlybecauseofincreaseininterestincomeanddecreaseinexpenditure
Netamountofcashflowgeneratedinoperatingactivities-22.79%Mainlybecauseoftheyear-on-yearincreaseinthecashpaidforpurchasingcommodityandreceivinglaborservice
Netamountofcashflowgeneratedininvestmentactivities18%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

20222021Year-on-yearincreaseordecrease(%)
AmountProportioninoperatingrevenueAmountProportioninoperatingrevenue
Totaloperatingrevenue3,918,941,160100%3,953,067,583100%-0.86%
Sector-classified
Sectorofliquorandalcoholicbeverage3,918,941,160100%3,953,067,583100%-0.86%
Product-classified

Wine

Wine2,841,437,99672.51%2,834,114,27671.69%0.26%
Brandy990,847,69125.28%1,036,164,83726.22%-4.37%
Tourism76,422,3141.95%73,192,1871.85%4.41%
Others10,233,1590.26%9,596,2830.24%6.64%
Area-classified
Domestic3,320,757,55584.74%3,421,775,48185.09%-2.95%
Overseas598,183,60515.26%531,292,10214.91%12.59%
Salesmodel-classified
Distribution3,272,506,75283.50%3,263,303,80082.55%0.28%
Directsales646,434,40816.50%689,763,78317.45%-6.28%

②Theindustry,product,regionandsalesmodelthataccountforover10%oftheCompany’soperatingrevenueoroperatingprofit?Available□Notavailable

Unit:CNY

OperatingrevenueOperatingcostGrossmarginYear-on-yearincreaseordecrease(%)ofoperatingrevenueYear-on-yearincreaseordecrease(%)ofoperatingcostYear-on-yearincreaseordecrease(%)ofgrossprofitrate
Sector-classified
Sectorofliquorandalcoholicbeverage3,918,941,1601,680,794,73257.11%-0.86%2%1.21%
Product-classified
Wine2,841,437,9961,234,184,57156.76%0.26%4.07%-2.74%
Brandy990,847,691406,386,91858.99%-4.37%-2.09%-1.59%
Tourism76,422,31434,842,15154.41%4.41%-18.66%31.18%
Others10,233,1595,381,09247.42%6.64%33.13%-18.08%
Area-classified
Domestic3,320,757,5551,275,274,61161.60%-2.95%-2.61%-0.16%
Overseas598,183,605405,520,12132.21%12.59%16.34%-3.93%
Salesmodel-classified
Distribution3,272,506,7521,396,195,48557.34%0.28%3.47%-1.31%
Directsales646,434,408284,599,24755.97%-6.28%-4.61%-0.77%

UndertheconditionthatthestatisticalcaliberoftheCompany’smainbusinessdataisadjustedduringthereportperiod,theCompany’smainbusinessdataadjustedonthebasisofcaliberattheendofreportperiodinrecentoneyear.□Available?Notavailable

③WhethertheCompany’ssalesrevenueformaterialobjectismorethanlaborservicerevenue?Yes□No

Sector

SectorItemUnit20222021Year-on-yearincreaseordecrease(%)
AlcoholandalcoholicbeverageindustrySalesvolumeTon93,00497,499-4.61%
YieldTon90,099100,737-10.56%
InventoryTon27,42730,412-9.81%
WineSalesvolumeTon65,54067,700-3.19%
YieldTon66,26967,342-1.59%
InventoryTon16,44116,1042.09%
BrandySalesvolumeTon27,46429,799-7.84%
YieldTon23,83033,394-28.64%
InventoryTon10,98614,308-23.22%

Explanationonthecausesofover30%year-on-yearchangesoftherelatedcomparisondata□Available?Notavailable④ThefulfillmentofsignificantsalescontractandpurchasecontractsignedbytheCompanyuptothereportperiod

□Available?Notavailable

⑤CompositionofoperatingcostsClassificationofsectorandproduct

Unit:CNY

SectorItem20222021Year-on-yearincreaseordecrease(%)
AmountProportionintheoperatingcost(%)AmountProportionintheoperatingcost(%)
LiquorandalcoholicbeverageBlendingliquor878,602,50653.21%833,479,06251.93%5.41%
Packingmaterial470,509,66628.50%477,555,06529.76%-1.48%
Wages61,024,1623.70%59,063,4863.68%3.32%
Manufacturingexpenses241,018,08914.60%234,857,16014.63%2.62%
WineBlendingliquor647,858,69752.49%611,321,50451.55%5.98%
Packingmaterial348,031,95628.20%328,926,66827.74%5.81%
Wages39,226,0573.18%50,206,3194.23%-21.87%
Manufacturingexpenses199,067,86116.13%195,416,59516.48%1.87%
BrandyBlendingliquor210,008,01851.68%220,058,43953.02%-4.57%
Packingmaterial143,071,66135.21%147,425,67435.52%-2.95%
Wages9,166,6662.26%8,708,4162.10%5.26%

Manufacturingcost

Manufacturingcost44,140,57310.86%38,849,0779.36%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.CustomernameSalesamount(CNY)Proportionintotalsalesfortheyear(%)
1Rank1st180,422,6144.61%
2Rank2nd40,497,5011.03%
3Rank3rd27,313,3920.70%
4Rank4th25,801,6830.66%
5Rank5th17,057,0580.44%
Total--291,092,2487.43%

Othersituationexplanationsofmajorcustomers

□Available?NotavailableInformationontheCompany’smainsuppliers

Thetotalpurchaseamountofthetop5suppliers310,187,581
Theproportionofthetotalpurchaseamountofthetop5suppliersintheannualpurchase25.99%

amount

amount
Theproportionoftherelatedpartypurchaseamountinthetop5supplierpurchaseamountinannualpurchaseamount6.89%

InformationontheCompany’stop5biggestsuppliers

No.SuppliernamePurchaseamount(CNY)Proportionintotalpurchasefortheyear(%)
1Rank1st84,456,0547.08%
2Rank2nd82,187,3886.89%
3Rank3rd62,415,7885.23%
4Rank4th43,590,1633.65%
5Rank5th37,538,1893.14%
Total--310,187,58125.99%

Othersituationexplanationsofmainsuppliers

□Available?Notavailable

(3)Expense

Unit:CNY

20222021Year-on-yearincreaseordecrease(%)Explanationofsignificantchanges
Salesexpense1,028,966,138998,954,1053%Mainlyduetotheincreasedmarketinginvestmentandtheyear-on-yearincreasedmarketingexpensesandlaborcost
Managementexpense287,605,531299,076,376-3.84%Mainlyduetothedecreaseofleasingcostandcontractfees
Financialexpense7,256,20721,178,727-65.74%MainlyduetotheincreaseoftheCompany’sinterestincomeanddecreaseofexpenses
ResearchandDevelopmentexpense15,431,31010,919,26241.32%MainlyduetotheincreaseinR&Minput,purchasingandupdatingscientificresearchequipment

TheCompanyneedstocomplywiththedisclosurerequirementsofthefoodandwinemanufacturingindustryassetoutintheGuidanceonSelf-RegulationofListedCompaniesofShenzhenStockExchangeNo.3-IndustryInformationDisclosure.

(4)Researchanddevelopmentinvestment?Available□Notavailable

NameofmainresearchanddevelopmentProjectpurposeProjectprogressTargetPredictedinfluenceintheCompany’sfuturedevelopment

project

project
ResearchanddevelopmentandindustrializationofsealwortwinemixedwithfruitjuiceDevelopingnewproductProjectapprovalDevelopmentofsealwortwinemixedwithfruitjuiceItcouldenrichtheCompany'sproductprofile,meetconsumerdemandandcultivatenewrevenuegrowthpointsfortheCompany.

TheCompany’sresearchanddevelopmentpersonnel

20222021Percentageofchanges(%)
NumberofR&Dpersonnel(person)1391371.46%
TheproportionofthenumberofR&Dpersonnel6.12%5.96%0.16%
EducationalstructureofR&Dpersonnel
Bachelor48480%
Postgraduate25238.70%
Doctor110%
BelowBachelor65650%
AgestructureofR&Dpersonnel
Under30-year-old35336.06%
30-to40-year-old41410%
Above40-year-old63630%

TheinvestmentoftheCompany’sR&D

20222021Percentageofchanges(%)
R&Dinvestmentamount(CNY)15,431,31010,919,26241.32%
R&Dinvestmentasapercentageofoperatingincome0.39%0.28%0.11%
AmountofR&Dinvestmentcapitalized(CNY)000%
CapitalizedR&DinvestmentasapercentageofR&Dinvestment0%0%0%

Reasonsandeffectsofmajorchangesinthecompositionofthecompany’sR&Dpersonnel□Available?NotavailableReasonsforthesignificantchangeintheproportionoftotalR&Dinvestmentinoperatingincomecomparedwiththepreviousyear

□Available?NotavailableReasonsforthesubstantialchangesinthecapitalizationrateofR&Dinvestmentanditsrationalityexplanation

□Available?Notavailable

(5)Cashflow

Unit:CNY

Item

Item20222021Year-on-yearincreaseordecrease(%)
Subtotalofcashinflowinoperatingactivities3,929,156,5043,812,599,3823.06%
Subtotalofcashoutflowinoperatingactivities3,060,279,8572,687,216,72413.88%
Netamountofcashflowgeneratedinoperatingactivities868,876,6471,125,382,658-22.79%
Subtotalofcashinflowininvestmentactivities162,953,148104,064,71856.59%
Subtotalofcashoutflowininvestmentactivities306,991,362279,720,7669.75%
Netamountofcashflowgeneratedininvestmentactivities-144,038,214-175,656,04818%
Subtotalofcashinflowinfinancingactivities641,331,495855,198,786-25.01%
Subtotalofcashoutflowinfinancingactivities1,256,089,0721,354,745,101-7.28%
Netamountofcashflowgeneratedinfinancingactivities-614,757,577-499,546,315-23.06%
Netincreaseofcashandcashequivalents110,426,571449,661,924-75.44%

Explanationofmaininfluencefactorscontributingtogreatchangesinrelateddataonyear-on-yearbasis□Available?NotavailableExplanationonthecausesofmajordifferencesbetweenthenetcashflowgeneratedbytheCompany’soperatingactivitiesandnetprofitofthisyearduringthereportperiod.

□Available?Notavailable

5.Analysistonon-mainbusiness□Available?Notavailable

6.Assetsandliabilities

(1)Significantchangesofassetscomposition

Unit:CNY

Attheendof2022

Attheendof2022Atthebeginningof2022Proportionincreaseordecrease(%)Explanationonsignificantchanges
AmountProportioninthetotalassets(%)AmountProportioninthetotalassets(%)
Monetaryfunds1,651,454,11512.54%1,567,095,99311.63%0.91%Nosignificantchanges
Receivables343,982,9852.61%291,006,4102.16%0.45%Nosignificantchanges
Contractassets0%0%0%Nosignificantchanges
Inventory2,903,398,51522.04%2,802,622,52020.80%1.24%Nosignificantchanges
Investmentrealestate22,115,3180.17%24,502,2580.18%-0.01%Nosignificantchanges
Long-termequityinvestments41,371,3850.31%46,496,5100.35%-0.04%Nosignificantchanges
Fixedassets6,028,137,97245.77%5,687,867,31442.22%3.55%Nosignificantchanges
Constructioninprogress40,934,1610.31%590,172,0994.38%-4.07%Nosignificantchanges
Right-of-useasset139,887,1591.06%134,569,0391%0.06%Nosignificantchanges
Short-termborrowings389,378,4802.96%622,066,4574.62%-1.66%Nosignificantchanges
Contractliability165,727,9911.26%147,120,7161.09%0.17%Nosignificantchanges
Long-termborrowings128,112,1150.97%176,047,0431.31%-0.34%Nosignificantchanges
Leaseliability109,505,0930.83%101,811,5880.76%0.07%Nosignificantchanges

Foreignassethasahighproportion?Available□Notavailable

Detailsofassets

DetailsofassetsFormationreasonsAssetsscaleLocationOperationmodeControlmeasuresforsafeguardingofassetsecurityEarningconditionProportionofoverseasassetsintheCompany’snetassetsWhethertherearesignificantimpairmentrisks
HaciendaYVinedosMarquesDelAtrio.SLAcquisitionofequity545,439,787SpainIndependentoperationTheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOonfinancialmanagement.17,497,5324.14%No
IndomitaWineCompanyChile,S.p.A.Establishmentofjointventure541,425,857ChileIndependentoperationTheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors.23,561,9924.11%No
KilikanoonEstatePty.,Ltd.Acquisitionofequity186,656,024AustraliaIndependentoperationTheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors.687,4151.42%No
FrancsChampsParticipationsSASSoleproprietorshipestablishment220,786,729FranceIndependentoperationTheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors.-1,931,4871.68%No
OtherexplanationNone

(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
126,590,000148,020,000-14.48%

(2)Casesofacquiredsignificantequityinvestmentsduringthereportperiod

□Available?Notavailable

(3)Casesofsignificantongoingnon-equityinvestmentsduringthereportperiod?Available□Notavailable

Unit:CNY

ProjectnameInvestmentmodeWhetherbelongstofixedassetsinvestmentInvolvedsectorsofinvestmentprojectsInvestmentamountduringthereportperiodAccumulatedactualinvestmentamountuptotheendofthereportperiodCapitalsourceProjectprogressEstimatedearningsAccumulatedrealizedearningsuptotheendofthereportperiodReasonsforunreachedplanningscheduleandestimatedearningsDisclosuredate(ifhave)Disclosureindex(ifhave)
YantaiChangyuInternationalWineCityBlendingandCoolingCenterSelf-constructedYesLiquorandalcoholicbeveragesector14,980,0001,700,004,100Ownedfund100%002017.04.22PleaserefertoResolutionAnnouncementofSeventhSessionBoardofDirectors4thMeeting,Resolution

AnnouncementofSeventhSessionBoardofDirectors

thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors

th

Meeting,ResolutionAnnouncementofEighthSessionBoardofDirectors

th

MeetingandResolutionAnnouncementofEighthSessionBoardofDirectors

th

MeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/)

YantaiChangyuInternationalWineCityBottlingCenterSelf-constructedYes45,260,0001,135,370,000Ownedfund100%002017.04.22AnnouncementofSeventhSessionBoardofDirectors8thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors10thMeeting,ResolutionAnnouncementofEighthSessionBoardofDirectors4thMeetingandResolutionAnnouncementofEighthSessionBoardofDirectors11thMeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/)
OakBarrelProcurementProjectSelf-constructedYes30,550,000178,634,200Ownedfund90%002021.04.28
IntellectualizedUpgradeandRenovationProjectofChangyuWineCultureMuseumSelf-constructedYes35,800,00050,113,000Ownedfund100%002022.04.27
Total------126,590,0003,064,121,300----00------

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

CompanynameCompanytypeMainbusinessRegisteredcapitalTotalassetsNetassetsOperatingrevenueOperatingprofitNetprofit
YantaiChangyuPioneerWineSalesCo.,Ltd.SubsidiarySalesCNY8million819,840,14090,700,0212,465,372,547445,740,455364,418,188
YantaiChangyuWineSalesCo.,Ltd.SubsidiarySalesCNY5million134,105,090128,804,718835,130,32836,447,05827,533,456
ChangyuTradingCo.,Ltd.inDevelopmentZoneofYantaiSubsidiarySalesCNY5million76,045,48714,401,839175,831,92163,533,12047,681,793
LaizhouChangyuWineSalesCo.,Ltd.SubsidiarySalesCNY1million72,131,7871,000,000264,248,00246,181,29634,716,488

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

ReceptiontimeReceptionplaceReceptionpatternTypeofreceptionobjectReceptionobjectMaindiscussedcontentsandprovideddataBasicsituationindexofreception
2022.06.15https://www.ironline.cn/OtherOtherInvestorsparticipatingtheCompany’s2021annualonlineperformancepresentationTherecentproductionandoperationsituationoftheCompanyThewebsiteofShenzhenStockExchange(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

SessionMeetingtypeParticipationratioofinvestorsConveningdateDisclosuredateMeetingResolution
2021AnnualShareholders’MeetingAnnualshareholders’Meeting60.42%2022.05.272022.05.28Themeetingdeliberatedandapprovedthe2021AnnualBoardofDirectors’WorkReport,2021AnnualBoardofSupervisors’WorkReport,2021AnnualReport,Proposalon2021AnnualProfitDistribution,Proposalon2022AnnualFinancialBudget,ProposalonChangingLicenseUseModeof‘Changyu’Trademarks,ProposalonAppointingCertifiedPublicAccountantsFirm,ProposalonReelectionofBoardofDirectors,ProposalonAppointingIndependentDirectorsandProposalonReelectionofBoardofSupervisors.

(2)Requestforconveninginterimshareholders’meetingbypreferredshareholdersowingrecoveredvotingright□Available?Notavailable

5.SituationforDirectors,Supervisors,SeniorExecutivesandStaff

(1)Changesinshareholdingsofdirectors,supervisorsandseniorexecutives

NamePostStatusGenderAgeBeginningdateoftenureEndingdateoftenureSharesheldatthebeginningoftheperiodIncreasedsharesduringtheperiodDecreasedsharesduringtheperiodOtherchangesofsharesheldSharesheldattheendoftheperiodReasonsoftheincreaseanddecreasechangeofsharesheld
ZHOUHongjiangChairmanIncumbentM582002.05.202025.05.2837,80000037,800
LENGBinDirectorOutgoingM602000.08.222022.05.27
SUNJianDirectorIncumbentM562019.05.172025.05.2860,00030,0000090,000Secondarymarketpurchases

YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport

LIJiming

LIJimingDirectorIncumbentM562019.05.172025.05.28
CHENDianxinDirectorIncumbentF562019.05.172025.05.28
AldinoMarzoratiDirectorIncumbentM702006.12.072025.05.28
JIANGJianxunDirectorIncumbentM562022.05.272025.05.28
StefanoBattioniDirectorIncumbentM642020.05.272025.05.28
EnricoSivieriDirectorIncumbentM542019.05.172025.05.28
CHIANGYunDirectorIncumbentF552020.06.192025.05.28
LUOFeiIndependentdirectorOutgoingM702016.09.232022.05.27
DUANChangqingIndependentdirectorIncumbentM582019.05.172025.05.28
LIUHuirongIndependentdirectorIncumbentF592019.05.172025.05.28
LIUQinglinIndependentdirectorIncumbentM592019.07.022025.05.28
YURenzhuIndependentdirectorIncumbentM442020.05.272025.05.28
WANGZhuquanIndependentdirectorIncumbentM572022.05.272025.05.28
KONGQingkunChairmanoftheBoardofSupervisorsOutgoingM502013.05.142022.05.27
ZHANGLanlanSupervisorOutgoingF532013.05.142022.05.27
LENGBinChairmanoftheBoardofSupervisorsIncumbentM602022.05.272025.05.28
LIUZhijunSupervisorIncumbentM422016.05.262025.05.28
ZHENGWenpingSupervisorIncumbentF542022.05.272025.05.28
SUNJianGeneralmanagerIncumbentM562018.01.102025.06.10
LIJimingDeputygeneralmanagerIncumbentM562019.05.282025.06.10

YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport

JIANGHua

JIANGHuaDeputygeneralmanagerIncumbentM592001.09.142025.06.10010,00010,000Secondarymarketpurchases
PENGBinDeputygeneralmanagerIncumbentM562018.01.102025.06.10
JIANGJianxunDeputygeneralmanagerandBoardsecretaryIncumbentM562019.05.282025.06.10
PANJianfuGeneralmanagerassistantIncumbentM472018.04.192025.06.10
KONGQingkunGeneralmanagerassistantIncumbentM502022.06.092025.06.10
LIUShiluGeneralmanagerassistantIncumbentM482018.04.192025.06.10
XIAOZhenboGeneralmanagerassistantIncumbentM462018.04.192025.06.10
Total------------97,80040,00000137,800--

Isthereanyresignationofdirectorsandsupervisorsanddismissalofseniormanagementpersonnelduringtheirtermofofficeduringthereportingperiod?Yes?NoMr.BinLengnolongerservedasadirectoroftheCompanyduetothechangeofpositionuponexpirationofhistermofoffice;Mr.FeiLuonolongerservedasanindependentdirectoroftheCompanyduetohisageuponexpirationofhistermofoffice;Mr.QingkunKongnolongerservedastheChairmanoftheBoardofSupervisorsoftheCompanyduetothechangeofpositionuponexpirationofhistermofoffice;Ms.LanlanZhangnolongerservedasasupervisoroftheCompanyduetoherageuponexpirationofhertermofoffice.Changesofdirectors,supervisorsandseniormanagersofthecompany?Available?Notavailable

NamePostStatusDateReasons
LENGBinDirectorOutgoingduetoexpirationofterm2022.05.27Nolongerservedasadirectorduetothechangeofpositionuponexpirationofterm

YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport

LENGBin

LENGBinChairmanoftheBoardofSupervisorsBeelected2022.05.27BeelectedasasupervisoroftheCompanybytheGeneralShareholders’Meeting,andbeelectedastheChairmanoftheBoardofSupervisorsbytheCompany’sBoardofSupervisors
LUOFeiIndependentdirectorOutgoingduetoexpirationofterm2022.05.27Nolongerservedasanindependentdirectorduetohisageuponexpirationofterm
WANGZhuquanIndependentdirectorBeelected2022.05.27BeelectedasanindependentdirectoroftheCompanybytheGeneralShareholders’Meeting
JIANGJianxunDirectorBeelected2022.05.27BeelectedasadirectoroftheCompanybytheGeneralShareholders’Meeting
KONGQingkunChairmanoftheBoardofSupervisorsOutgoingduetoexpirationofterm2022.05.27NolongerservedastheChairmanoftheBoardofSupervisorsduetothechangeofpositionuponexpirationofterm
KONGQingkunGeneralmanagerassistantBeappointed2022.06.09BeelectedasageneralmanagerassistantbytheCompany’sBoardofDirectors
ZHANGLanlanSupervisorOutgoingduetoexpirationofterm2022.05.27NolongerservedasasupervisoroftheCompanyduetoherageuponexpirationofterm
ZHENGWenpingSupervisorBeelected2022.05.27BeelectedasasupervisorbytheCompany’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

NameShareholder’sCompanyPostBeginningdateofthepostEndingdateofthepostPaidbyshareholder’scompanyornot
ZHOUHongjiangYantaiChangyuGroupCo.,Ltd.Chairman2018.01.102026.01.11No
LENGBinYantaiChangyuGroupCo.,Ltd.Director2018.01.102026.01.11Yes
LENGBinYantaiChangyuGroupCo.,Ltd.Director&Generalmanager2018.01.102026.01.11Yes
SUNJianYantaiChangyuGroupCo.,Ltd.Director2018.01.102026.01.11No
LIJimingYantaiChangyuGroupCo.,Ltd.Director2018.01.102026.01.11No
CHENDianxinYantaiChangyuGroupCo.,Ltd.Director2018.11.152026.01.11No
AldinoMarzoratiYantaiChangyuGroupCo.,Ltd.Director2018.01.102026.01.11No
EnricoSivieriYantaiChangyuGroupCo.,Ltd.Director2018.01.102026.01.11No
StefanoBattioniYantaiChangyuGroupCo.,Ltd.Director2020.04.092026.01.11No
CHIANGYunYantaiChangyuGroupCo.,Ltd.Director2020.05.122026.01.11No
Explanationforthepostintheshareholder’scompanyMr.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

NamePostGenderAgeStatusTotalrewardfromtheCompanybeforetaxWhethergetrewardfromrelatedpartiesoftheCompany
ZHOUHongjiangChairmanM58Incumbent149.62No
SUNJianDirectorandGeneralManagerM56Incumbent115.77No
LIJimingDirectorandDeputyGeneralManagerM56Incumbent85.05No
JIANGJianxunDirector,DeputyGeneralManagerandBoardsecretaryM56Incumbent87.90No
CHENDianxinDirectorF56Incumbent0Yes
AldinoMarzoratiDirectorM70Incumbent0No
StefanoBattioniDirectorM64Incumbent0No
EnricoSivieriDirectorM54Incumbent0No
CHIANGYunDirectorF55Incumbent0No
DUANChangqingIndependentDirectorM58Incumbent10No
LIUHuirongIndependentDirectorF59Incumbent10No
LIUQinglinIndependentDirectorM59Incumbent10No
YURenzhuIndependentDirectorM44Incumbent10No
WANGZhuquanIndependentDirectorM57Incumbent6No
LUOFeiIndependentDirectorM70Outgoing5No
LENGBinSupervisorM60Incumbent0Yes
ZHENGWenpingSupervisorF54Incumbent24.09No
LiuZhijunSupervisorM42Incumbent0Yes
ZhangLanlanSupervisorF53Outgoing14.11No
JIANGHuaDeputyGeneralManagerM59Incumbent98.70No
PENGBinDeputyGeneralManagerM56Incumbent82.45No
PANJianfuGeneralManagerAssistantM47Incumbent63.81No
KONGQingkunGeneralManagerAssistantM50Incumbent58.43No
LIUShiluGeneralManagerAssistantM48Incumbent58.80No
XIAOZhenboGeneralManagerAssistantM46Incumbent63.31No
Total--------953.04--

YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport

6.Performanceofdirectorsduringthereportperiod

(1)Thesituationoftheboardofdirectors’meetingsduringthisreportingperiod

Thesessionofmeetings

ThesessionofmeetingsHoldingdateDisclosuredateMeetingresolution
TheEighthSessionBoardofDirectors11thMeeting2022.04.252022.04.27Themeetingdeliberatedandapproved2021AnnualBoardofDirectors’WorkReport,2021AnnualGeneralManager’sWorkReport,2021AnnualReport,DraftProposalon2021AnnualProfitDistribution,Proposalon2021AnnualPerformanceAssessmentResultoftheCompany’sSeniorExecutives,2021AnnualSelfAssessmentReportonInternalControl,2021AnnualSocialResponsibilityReport,ProposalonRelevantIssuesofConvening2021AnnualShareholders’Meeting,ProposalonReelectionofBoardofDirectors,ProposalonAppointingIndependentDirectors,ProposalonAppointmentofCertifiedPublicAccountingFirm,Proposalon2022AnnualCapitalExpenditurePlan,Proposalon2022AnnualRoutineRelatedTransaction,Proposalon2022AnnualFinancialBudget,ProposalonChangingLicenseUseModeof‘Changyu’TrademarksandProposalonLiquidationofJointVentureCompanyYantaiSantaiRealEstateDevelopmentCo.,Ltd..
TheFirstInterimBoardofDirectorsMeetingin20222022.04.28-Themeetingdeliberatedandapproved2022FirstQuarterReport.
TheNinthSessionBoardofDirectors1stMeeting2022.06.092022.06.10ThemeetingdeliberatedandapprovedProposalonElectingChairmanoftheCompany,ProposalonElectingAuditingCommitteeMembers,ProposalonElectingEmolumentCommitteeMembers,ProposalonAppointingGeneralManagerandOtherSeniorManagementand2022-2024PerformanceEvaluationandRemunerationIncentiveMeasuresforSeniorManagement.
TheNinthSessionBoardofDirectors2ndMeeting2022.08.242022.08.26Themeetingdeliberatedandapproved2022Semi-AnnualReportandProposalon2022Semi-AnnualProfitDistribution.

YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport

TheNinthSessionBoardofDirectors3

rdMeeting

TheNinthSessionBoardofDirectors3rdMeeting2022.10.26-Themeetingdeliberatedandapproved2022ThirdQuarterReport.

(2)Attendanceofdirectorsfortheboardofdirectors’andtheshareholders’meetings

Attendanceofdirectorsfortheboardofdirectors
NameRequiredattendancetimePersonalattendanceCommunicationattendanceAuthorizedattendanceAbsenceWhetherornottoattendthemeetingspersonallyforsuccessivetwiceAttendancetimefortheshareholders’meeting
ZHOUHongjiang52300No1
LENGBin21100No0
SUNJian52300No1
LIJiming52300No1
JIANGJianxun31200No1
CHENDianxin52300No0
AldinoMarzorati51310No0
StefanoBattioni52300No0
EnricoSivieri51310No0
CHIANGYun52300No0
LUOFei21100No0
DUANChangqing52300No0
LIUHuirong52300No0
LIUQinglin52300No0
YURenzhu52300No0
WANGZhuquan31200No0

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

CommitteesnameMembersNumbersofmeetingheldHelddateMeetingcontentsImportantcommentsandsuggestionsmadeOtherperformanceofdutiesSpecificcircumstancesoftheobjection(ifhave)
AuditingCommitteeDUANChangqing,LIUHuirong,LIUQinglin,YuRenzhu,LUOFei,CHENDianxin,LENGBin,EnricoSivieri12022.04.25Themeetingdeliberatedandapprovedthe2021AnnualReport,DraftProposalon2021AnnualProfitDistribution,ProposalonAppointingCertifiedPublicAccountantsFirm,2021AnnualSelfAssessmentReportonInternalControl,Duringthereportingperiod,themembersoftheAuditCommitteeprovidedadviceandsuggestionsinguidingtheinternalauditwork,supervisingandNoNo

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,EnricoSivieri12022.06.09Themeetingdeliberatedandapprovedthe2022Semi-AnnualReportandProposalon2022Semi-AnnualProfitDistribution.
EmolumentCommitteeDUANChangqing,LIUHuirong,LIUQinglin,YuRenzhu,LUOFei,CHIANGYun,LENGBin,EnricoSivieri12022.04.25ThemeetingdeliberatedandapprovedtheProposalon2021AnnualPerformanceAssessmentResultsoftheCompany’sSeniorExecutives.Duringthereportingperiod,theEmolumentCommitteeputforwardrelevantsuggestionsonfurtherstrengtheningtheperformanceassessmentofseniorexecutivesandimprovingthewayofremuneration.NoNo

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
CategoryNumberofpeople(people)
Productionstaff705
Salesstaff1,087
Technicalstaff137
Financialstaff108
Administrativestaff233
Total2,270
Educationdegree
CategoryNumber(People)
Postgraduateandabove92
Bachelor867
JuniorCollege688
TechnicalsecondaryschoolorSeniorhighschool432
Juniorhighschoolandbelow191
Total2,270

(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’meetingYes

YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport

Whetherthedistributionstandardandproportionisclearanddefinite

WhetherthedistributionstandardandproportionisclearanddefiniteYes
WhethertherelevantdecisionprocessandmechanismiscompleteYes
WhethertheindependentdirectorsperformtheirresponsibilitiesandplaytherolesYes
Whetherthesmallandmiddleshareholdershavethechancetoexpresstheiropinionsandappeals,aswellastheirlawfulrightandinterestisinanenoughprotectionYes
WhetheritislegalandtransparentfortheconditionandprocesswhileadjustingandamendingthecashdividendspolicyYes

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)inotherways0
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
ConsolidationParentcompany
Year-endundistributedprofit9,049,649,2119,582,860,014
Amongwhich:Totalcomprehensiveincomein2022428,681,411749,757,149
Undistributedprofitcarriedforwardfrombeginningoftheyear8,929,426,6009,141,561,665

YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport

Dividendsdistributionof2021

Dividendsdistributionof2021308,458,800308,458,800
Legalearnedsurplusreservetobedrawn00

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

CompanynameIntegrationplanIntegrationprogressProblemsencounteredinintegrationActionstakenResolveprogressFollow-upresolutionplan
NoneNoneNoneNoneNoneNoneNone

14.Internalcontrolself-assessmentreportorinternalcontrolauditreport

(1)Internalcontrolself-assessmentreport

Disclosuredateforfulltextoftheinternalcontrolself-assessmentreport2023.04.13
Disclosureindexforfulltextoftheinternalcontrolself-assessmentreport2022AnnualSelf-AssessmentReportonInternalControldisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril13th,2023
PercentageoftotalunitassetsincludedinscopeoftheassessmentaccountingfortheCompany’stotalassetsofconsolidatedfinancialstatements84.93%
PercentageofunitoperatingincomeincludedinscopeoftheassessmentaccountingfortheCompany’soperatingincomeofconsolidatedfinancialstatements92.41%
StandardsofDefectIdentification
CategoryFinancialreportNon-financialreport
QualitativecriteriaSignificantdefects:onedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport.Forexample:?Company’sDirectors,SupervisorsandSeniorManagementhavefraudulentpractices;?TheCompanymakescorrectionsforthepublishedfinancialreport;?Theauditofexternalintermediaryagentfindssignificantmisstatementexistinginthecurrentfinancialreport,buttheCompanydoesnotSignificantdefects: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.
QuantitativecriterionFortotalassets/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%,orFordirectpropertyloss:?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%
Numberofsignificantdefectinfinancialreport0
Numberofsignificantdefectinnon-financialreport0
Numberofmajordefectinfinancialreport0
Numberofmajordefectinnon-financialreport0

(2)Internalcontrolauditreport?Available□Notavailable

Auditopinionsoftheinternalcontrolauditreport
Webelievethat,thecompanymaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialaspectsinaccordancewiththeBasicNormsforCorporateInternalControlandrelatedregulationsonDecember31st,2022.
DisclosureoftheinternalcontrolauditreportDisclosure
Disclosuredateforthefulltextoftheinternalcontrolauditreport2023.04.13
Disclosureindexforthefulltextoftheinternalcontrolauditreport2022AnnualSelf-AssessmentReportonInternalControldisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril13th,2023.
OpiniontypeoftheinternalcontrolauditreportStandardwithoutreservedopinion
Whetherornotexistssignificantdefectsinnon-financialreportsNo

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

NameofcompanyorsubsidiaryNameofmajorpollutantsandparticularpollutantsNameofmajorpollutantsandcharacteristicpollutantsModeofdischargeQuantityofdischargeoutletDistributionsituationofdischargeoutletDischargeconcentrationImplementedpollutiondischargestandardTotalvolumeofdischargeTotalapprovedvolumeofdischargeConditionofexcessivedischarge
LiaoningChangyuIcewineChateauCo.,Ltd.Organizedexhaustgas,inorganizedexhaustgas,wasterwater,exhaustgas,wasterwater,noiseDischargeoutletofboilerchimneyanddischargeoutletoffactorywaste2ConfirmedinlinewithnationalstandardGraphicalSignsforEnvironmentalMeetingthenationalstandardsEmissionStandardforAirPollutantsofBoiler(GB13271-2014),EmissionStandardforOdorPollutants(GB14554-93),4ainClass2ofEmissionStandardforEnvironmentalNoiseattheBoundaryofIndustrialEnterprises35m3/d120m3/dNo

YantaiChangyuPioneerWineCo.Ltd.2022AnnualReport

noise

noisewaterProtection(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

CompanyorsubsidiarynameReasonforpenaltyViolationPenaltyresultTheimpactontheproductionandoperationoflistedcompaniesThecompany’srectificationmeasures
NoneNoneNoneNoneNoneNone

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

CommitmentsCommitmentpartyCommitmenttypeCommitmentcontentCommitmenttimeCommitmentperiodImplementation
CommitmentsattheinitialpublicofferingorrefinancingYantaiChangyuGroupCo.,Ltd.SolvehorizontalcompetitionNon-horizontalcompetition1997.05.18ForeverHasbeenperforming
YantaiChangyuGroupCo.,Ltd.CleartheuseoftrademarkroyaltyAccordingtoTrademarkLicenseContract,thetrademarkroyaltyofChangyuandothertrademarkspaidbytheCompanytoYantaiChangyuGroupCo.,Ltd.everyyearismainlyusedforadvertisingChangyuandothertrademarksandthiscontractproductsbyYantaiChangyuGroupCo.,Ltd.1997.05.181997.05.18-2019.04.04AccordingtoTrademarkLicenseContract,thetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksincludingChangyuandcontractproducts.Except2013to2017duringwhichthecommitmentwasnotstrictlyperformed,YantaiChangyuGroupCo.,Ltd.hasbeenperformingitscommitment.
OthercommitmentsYantaiChangyuGroupCo.,Ltd.CompensatingunredeemedcommitmentTheCNY231,768,615thatwasnotusedforpublicityoftrademarksandcontractproductsaspromisedwillbeoffsetbythefour-yeartrademarkusefeefrom2019to2022.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence.2019.04.042019.04.04-2023.12.31Hasbeenperforming
CommitmentundertimelyimplementationornotYes

Whetherornottohavespecificreasonsoftheunimplementedcommitmentandnextsteps

WhetherornottohavespecificreasonsoftheunimplementedcommitmentandnextstepsAccordingtotheTrademarkLicenseContract(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

DomesticaccountingfirmnameKPMGHuaZhenLLP
Remunerationfordomesticaccountingfirm(CNY‘0000)205
Consecutiveperiodfortheauditserviceofdomesticaccountingfirm4
NameofcertifiedpublicaccountantfortheauditserviceofdomesticaccountingfirmMs.TingWang,Ms.HuiJiang
Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofdomesticaccountingfirm4
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

RelatedpartyRelationshipTypeContentPricingprinciplePriceAmount(CNY‘0000)ProportionaccountingforamountofsimilartransactionsApprovedtransactionquota(CNY‘0000)WhetherexceedapprovedtransactionquotaClearingformAvailablemarketpriceofsimilartransactionsDisclosuredateDisclosureindex
YantaiShenmaPackagingCo.,Ltd.ControlledbythesameparentcompanyPurchaseandcommissionprocessingPurchaseandcommissionprocessingpackagingmaterialsAgreementpricingDeterminedbyagreement8,21916.43%9,000NoCashNo2022.04.27ExpectedAnnouncementon2022AnnualRoutineRelatedTransactiondisclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFOin2022
Total----8,219--9,000----------
DetailsofthereturnoflargesalesNo

(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

NameofinterimannouncementDisclosuredateofinterimannouncementNameofdisclosurewebsiteforinterimannouncement
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)
GuaranteeobjectnameDisclosuredateofrelatedannouncementaboutguaranteequotaGuaranteequotaActualdateofoccurrence(dateofagreement)ActualguaranteeamountGuaranteetypeCollateral(ifhave)Counterguaranteesituation(ifhave)GuaranteePeriodWhetherornotcompleteimplementationWhetherornotbelongtorelated-partyguarantee
YantaiEconomicandTechnologicalDevelopmentZoneManagementCouncil.2016.12.2234,1602016.12.2134,160Jointliabilityassurance;Mortgage--10yearsNoNo
Totaloftheexternalguaranteequotaapprovedduringthereportperiod(A1)0Totaloftheactualexternalguaranteeamountduringthereportperiod(A2)0
Totaloftheexternalguaranteequotaapprovedbytheendofthereportperiod(A3)34,160Balanceoftheactualexternalguaranteebytheendofthereportperiod(A4)34,160
GuaranteesituationsbetweentheCompanyandsubsidiaries
GuaranteeobjectnameDisclosuredateofrelatedannouncementaboutguaranteequotaGuaranteequotaActualdateofoccurrenceActualguaranteeamountGuaranteetypeCollateralCounterguaranteesituationGuaranteePeriodWhetherornotcompleteimplementationWhetherornotbelongtorelated-partyguarantee
YantaiChangyuWineResearchandDevelopmentCompanyLimited2016.12.2272,1762016.12.2172,176Jointliabilityassurance;Mortgage--10yearsNoYes
KilikanoonEstatePtyLtd2018.12.058,5282018.12.137,858Jointliabilityassurance--5yearNoYes

Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(B1)

Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(B1)0Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(B2)0
Totaloftheguaranteequotaapprovedtosubsidiariesbytheendofthereportperiod(B3)80,704Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(B4)80,034
Guaranteesituationsbetweensubsidiaries
GuaranteeobjectnameDisclosuredateofrelatedannouncementaboutguaranteequotaGuaranteequotaActualdateofoccurrenceActualguaranteeamountGuaranteetypeCollateralCounterguaranteesituationGuaranteePeriodWhetherornotcompleteimplementationWhetherornotbelongtorelated-partyguarantee
TotalguaranteeamountoftheCompany(Totalofabovethreemajoritems)
Totaloftheapprovedguaranteequotaduringthereportperiod(A1+B1+C1)0Totaloftheactualguaranteeamountduringthereportperiod(A2+B2+C2)0
Totaloftheapprovedguaranteequotabytheendofthereportperiod(A3+B3+C3)114,864Balanceoftheactualguaranteebytheendofthereportperiod(A4+B4+C4)114,194
Theproportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’snetasset10.79%
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

AmountbeforethischangeChange(+,-)Amountafterthischange
AmountPercentage%AllotnewshareDistributebonusshareTransferothercapitaltosharecapitalOthersSubtotalAmountPercentage%
I.Shareswithtradinglimitedcondition
1.State-ownedholdings
2.State-ownedlegalpersonholdings
3.Otherdomesticholdings
Amongwhich:domesticlegalperson
domesticnaturalperson
4.Foreign-ownedholdings
Amongwhich:foreignlegalperson
foreignnaturalperson
II.Shareswithouttradinglimitedcondition685,464,000100%685,464,000100%
1.Ashares453,460,80066.15%453,460,80066.15%

2.Bshares

2.Bshares232,003,20033.85%232,003,20033.85%
3.Oversealistedforeignshares
4.Others
III.Totalshares685,464,000100%685,464,000100%

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

Totalshareholdersinthereportperiod44,371Totalnumberofshareholdersbytheendoflastmonthbeforethedisclosuredayoftheannualreport42,682Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendofreportperiod(ifhave)(seenote8)0Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendoflastmonthbeforethedisclosuredayoftheannualreport(ifhave)(seenote8)0
Shareholdersholdingmorethan5%orthetop10shareholdersholdingsituation
NameofShareholdersCharacterofshareholdersPercentage(%)ShareshelduntiltheendofthereportperiodChangesduringthereportperiodNumberofrestrictedsharesNumberofunrestrictedsharesPledged/markedorfrozen
SharestatusAmount
YANTAICHANGYUGROUPCO.,LTD.Domesticnon-statelegalperson50.40%345,471,556-2,3000345,471,5560
GAOLINGFUND,L.P.Foreignlegalperson3.08%21,090,2190021,090,2190
BBHBOSS/AFIDELITYFD-CHINAFOCUSFDForeignlegalperson1.12%7,683,016-1,457,20007,683,0160
SHENWANHONGYUANSECURITIES(HONGKONG)LIMITEDForeignlegalperson1.06%7,293,952-120,00007,293,9520
#JIANGFengdiDomesticnaturalperson0.77%5,295,000837,80005,295,0000
GUOTAIJUNANSECURITIES(HONGKONG)LIMITEDForeignlegalperson0.73%4,998,831-13,04004,998,8310

HaitongInternationalSecuritiesCompanyLimited-AccountClient

HaitongInternationalSecuritiesCompanyLimited-AccountClientForeignlegalperson0.73%4,986,502-25,36904,986,5020
HONGKONGSECURITIESCLEARINGCOMPANYLIMITEDForeignlegalperson0.64%4,420,0861,341,26104,420,0860
VANGUARDEMERGINGMARKETSSTOCKINDEXFUNDForeignlegalperson0.59%4,026,863-144,00004,026,8630
FIDELITYCHINASPECIALSITUATIONSPLCForeignlegalperson0.55%3,779,202003,779,2020
Strategicinvestorsorlegalresultoftheplacementofnewsharestobecomeatop10shareholdersNo
TheexplanationfortheassociatedrelationshipandaccordantactionAmongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,whiletherelationshipamongtheothershareholdersisunknown.
Explanationoftheabove-mentionedshareholders’entrustment/fiduciaryvotingrightsandwaiverofthevotingrightsNo
Specialexplanationfortheexistenceofaspecialrepurchaseaccountamongthetop10shareholdersNo
Thetop10shareholderswithshareswithouttradinglimitedcondition
NameofShareholdersNumberofshareswithouttradinglimitedconditionhelduntiltheendoftheyearTypeofshare
TypeofshareAmount
YANTAICHANGYUGROUPCO.,LTD.345,471,556A345,471,556
GAOLINGFUND,L.P.21,090,219B21,090,219
BBHBOSS/AFIDELITYFD-CHINAFOCUSFD7,683,016B7,683,016
SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED7,293,952B7,293,952
#JIANGFengdi5,295,000A5,295,000
GUOTAIJUNANSECURITIES(HONGKONG)LIMITED4,998,831B4,998,831
HaitongInternationalSecuritiesCompanyLimited-AccountClient4,986,502B4,986,502
HONGKONGSECURITIESCLEARINGCOMPANYLIMITED4,420,086A4,420,086
VANGUARDEMERGINGMARKETSSTOCKINDEXFUND4,026,863B4,026,863

WhetherornottheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditiontakeagreedrepurchasetradingduringthereportperiod

□Yes?NoThereisnoagreedrepurchasetradingtakenbytheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditionduringthereportperiod.

(2)SituationforthecontrollingshareholdersoftheCompanyPropertyofholdingshareholders:PropertyofholdingmainbodyundefinedTypeofholdingshareholders:Legalrepresentative

Nameofcontrollingshareholder

NameofcontrollingshareholderLegalrepresentativeEstablishmentdateOrganizationcodeMainbusiness
YantaiChangyuGroupCo.,Ltd.ZHOUHongjiang1997.04.27913706002656458244Productionofwine,healthyliquor,distilledliquorandbeverages(onlyproducedbysubsidiaries,shareholdingcompaniesandbranches),salesoftheabove-mentionedproducts,cultivationofagriculturalproductsandexportbusinessunderthescopeofpermission.
EquitysituationfortheotherdomesticlistedcompaniescontrolledorsharedbythecontrollingshareholdersduringthereportperiodNo.

Changesinthecontrollingshareholderduringthereportperiod?Available?Notavailable

FIDELITYCHINASPECIALSITUATIONSPLC3,779,202B3,779,202
Theexplanationfortheassociatedrelationshipandaccordantactionofthetop10shareholderswithunrestrictedshares,thetheassociatedrelationshipandaccordantactionbetweenthetop10shareholderswithunrestrictedsharesandthetop10shareholdersAmongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,andtherelationshipamongtheothershareholdersisunknown.
Explanationforthetop10shareholderswhoinvolvedinfinancingactivitiesandstocktradingbusinessThetop10shareholdersdonotinvolveinfinancingactivitiesandstocktradebusiness.

Therearenochangesinthecontrollingshareholderduringthereportperiod.

(3)SituationfortheactualcontrollersoftheCompanyanitspersonsactinginconcertPropertyofactualcontrollers:domesticotherinstitutions;foreignotherinstitutionsTypeofactualcontrollers:Legalrepresentative

Nameofactualcontrollers

NameofactualcontrollersLegalrepresentativeEstablishmentdateOrganizationcodeMainbusiness
YantaiYuhuaInvestment&DevelopmentCo.,Ltd.JIANGHua2004.10.2876779294-7Understatepermission,propertyinvestment,tenancyofmachineandfacility,wholesaleandretailofconstructionmaterial,chemicalproducts(chemicalhazardproductsexcluded),hardwareandelectronicalproducts,grapeplantation.
ILLVASaronnoHoldingS.p.a.ALDINOMARZORATI1984.07.25Directlyorindirectlyconducttheproductionanddistributionoffoodproducts(alcoholicproductsincluded)aswellasindustrial,commercial,financialandserviceactivitiesofanyotherkindsthroughjoint-stockcompaniesandorganizations.
InternationalFinanceCorporationMakhtarDiop1956.07.25InternationalFinanceCorporationisoneofthemembersofWorldBank,mainlydedicatedtoinvestmentinprivatesectorsofdevelopingcountrieswhileprovidingtechnicalsupportandconsultationservice.Thecorporationisamultilateralfinancialinstitutionthatranksfirstintheworldintermsofprovidingcapitalstockandloanstodevelopingcountries.Itspurposeistopromotesustainableinvestmentsofprivatesectorsofdevelopingcountriesinordertoalleviatepovertyandimprovepeople’slife.
YantaiGuofengInvestmentHoldingsGroupCo.,Ltd.RONGFeng2009.02.1200426068-6Operatingmanagementofstate-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).
EquitysituationfortheotherdomesticlistedcompaniescontrolledbytheactualcontrollerduringthereportperiodYantaiYuhuaInvestment&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

TypeofauditopinionStandardunqualifiedauditopinion
DatesignedonauditreportApril11th,2023
AuditagencynameKPMGHuazhenCertifiedPublicAccountantsCo.,Ltd.(specialgeneralpartnership)
AuditreportNo.KPMGHuazhenShenZiNo.2304287
Certifiedpublicaccountant’snameMs.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.
TheKeyAuditMattersHowtheMatterwasAddressedinOurAudit
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.
TheKeyAuditMattersHowtheMatterwasAddressedinOurAudit
?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

Note31December202231December2021
Assets
Currentassets
CashatbankandonhandV.11,651,454,1151,567,095,993
BillsreceivableV.22,712,46042,827,666
AccountsreceivableV.3343,982,985291,006,410
ReceivablesunderfinancingV.4309,329,918364,457,497
PrepaymentsV.560,415,50875,235,879
OtherreceivablesV.670,542,39830,125,270
InventoriesV.72,903,398,5152,802,622,520
OthercurrentassetsV.8185,337,393217,152,601
Totalcurrentassets5,527,173,2925,390,523,836
Non-currentassets?
Long-termequityinvestmentsV.941,371,38546,496,510
InvestmentpropertiesV.1022,115,31824,502,258
FixedassetsV.116,028,137,9725,687,867,314
ConstructioninprogressV.1240,934,161590,172,099
BearerbiologicalassetsV.13184,420,741193,712,942
Right-of-useassetsV.14139,887,159134,569,039
IntangibleassetsV.15578,240,846617,866,879
GoodwillV.16107,163,616112,374,541
Long-termdeferredexpensesV.17274,699,232284,593,163
DeferredtaxassetsV.18227,362,656245,210,731
Othernon-currentassetsV.19-144,120,442
Totalnon-currentassets7,644,333,0868,081,485,918
Totalassets13,171,506,37813,472,009,754

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2022(continued)

(ExpressedinRenminbiYuan)

Note

Note31December202231December2021
Liabilitiesandshareholders’equity
Currentliabilities
Short-termloansV.20389,378,480622,066,457
AccountspayableV.21503,323,746493,453,816
ContractliabilitiesV.22165,727,991147,120,716
EmployeebenefitspayableV.23182,951,538195,019,441
TaxespayableV.24239,695,902342,322,300
OtherpayablesV.25372,608,689453,033,491
OthercurrentliabilitiesV.2618,945,70618,374,193
Non-currentliabilitiesduewithinoneyearV.27144,020,834110,865,126
Totalcurrentliabilities2,016,652,8862,382,255,540
Non-currentliabilities?
Long-termloansV.28128,112,115176,047,043
LeaseliabilitiesV.14109,505,093101,811,588
Long-termpayablesV.2942,000,00064,000,000
DeferredincomeV.3038,389,05841,295,338
DeferredtaxliabilitiesV.1811,266,93211,803,970
Othernon-currentliabilitiesV.31-2,119,671
Totalnon-currentliabilities329,273,198397,077,610
Totalliabilities2,345,926,0842,779,333,150

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2022(continued)

(ExpressedinRenminbiYuan)

Note

Note31December202231December2021
Liabilitiesandshareholders’equity(continued)
Shareholders’equity
SharecapitalV.32685,464,000685,464,000
CapitalreserveV.33524,968,760524,968,760
OthercomprehensiveincomeV.34(23,760,238)(34,707,177)
SurplusreserveV.35342,732,000342,732,000
RetainedearningsV.369,049,649,2118,929,426,600
TotalequityattributabletoshareholdersoftheCompany10,579,053,73310,447,884,183
Non-controllinginterests246,526,561244,792,421
Totalowners’equity10,825,580,29410,692,676,604
Totalliabilitiesandshareholders’equity13,171,506,37813,472,009,754

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2022

(ExpressedinRenminbiYuan)

Note

Note31December202231December2021
Assets
Currentassets
Cashatbankandonhand874,241,771562,588,819
Accountsreceivable2,301,505-
BillsreceivableXIV.1-9,800,000
ReceivablesunderfinancingXIV.241,061,41762,411,636
Prepayments3,518,783406,500
OtherreceivablesXIV.3720,176,320398,072,976
Inventories335,031,522383,294,208
Othercurrentassets20,080,84420,637,860
Totalcurrentassets1,996,412,1621,437,211,999
Non-currentassets?
Long-termequityinvestmentsXIV.47,705,853,3787,599,421,494
Investmentproperties22,115,31824,502,258
Fixedassets216,651,596231,284,799
Constructioninprogress375,969255,996
Bearerbiologicalassets108,370,882114,753,306
Right-of-useassets36,153,79936,826,342
Intangibleassets75,298,04478,043,888
Deferredtaxassets12,120,60518,033,185
Othernon-currentassets1,850,200,0002,023,500,000
Totalnon-currentassets10,027,139,59110,126,621,268
Totalassets12,023,551,75311,563,833,267

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2022(continued)

(ExpressedinRenminbiYuan)

Note

Note31December202231December2021
Liabilitiesandshareholders’equity
Currentliabilities
Short-termloans100,000,000150,000,000
Accountspayable100,583,55090,339,903
Employeebenefitspayable68,112,83266,770,838
Taxespayable39,101,25932,588,429
Otherpayables499,751,275445,874,937
Non-currentliabilitiesduewithinoneyear5,129,6071,485,190
Totalcurrentliabilities812,678,523787,059,297
Non-currentliabilities?
Leaseliabilities38,757,16743,312,517
Deferredincome877,8142,268,527
Deferredtaxliabilities-88,555
Othernon-currentliabilities-1,164,471
Totalnon-currentliabilities39,634,98146,834,070
Totalliabilities852,313,504833,893,367

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2022(continued)(ExpressedinRenminbiYuan)

Note

Note31December202231December2021
Liabilitiesandshareholders’equity(continued)
Shareholders’equity
Sharecapital685,464,000685,464,000
Capitalreserve560,182,235560,182,235
Surplusreserve342,732,000342,732,000
Retainedearnings9,582,860,0149,141,561,665
Totalowners’equity11,171,238,24910,729,939,900
Totalliabilitiesandshareholders’equity12,023,551,75311,563,833,267

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2022

(ExpressedinRenminbiYuan)

Note

Note20222021
I.OperatingincomeV.373,918,941,1603,953,067,583
Less:OperatingcostsV.371,680,794,7321,647,789,874
TaxesandsurchargesV.38289,656,627264,057,570
SellinganddistributionexpensesV.391,028,966,138998,954,105
GeneralandadministrativeexpensesV.40287,605,531299,076,376
Researchanddevelopmentexpenses15,431,31010,919,262
FinancialexpensesV.417,256,20721,178,727
Including:Interestexpenses26,856,89028,851,606
Interestincome24,186,35119,558,354
Add:OtherincomeV.4233,145,44048,240,741
InvestmentlossesV.43(3,447,794)(2,784,997)
Including:Lossesfrominvestmentassociatesandinjointventures(3,447,794)(2,784,997)
Creditreversal/(losses)V.444,752,797(7,937,144)
ImpairmentlossesV.45(5,789,670)(19,874,251)
LossesfromdisposalofassetsV.46(16,191,903)(11,939,284)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2022(continued)(ExpressedinRenminbiYuan)

Note

Note20222021
II.Operatingprofit621,699,485716,796,734
Add:Non-operatingincomeV.476,832,8095,214,304
Less:Non-operatingexpensesV.472,949,9916,311,844
III.Totalprofit625,582,303715,699,194
Less:IncometaxexpensesV.48194,233,589209,020,821
IV.Netprofit431,348,714506,678,373
(1)Netprofitclassifiedbycontinuityofoperations:?
1.Netprofitfromcontinuingoperations431,348,714506,678,373
2.Netprofitfromdiscontinuedoperations--
(2)Netprofitclassifiedbyownership:?
1.NetprofitattributabletoownersoftheCompany428,681,411500,102,606
2.Non-controllinginterests2,667,3036,575,767
V.Othercomprehensiveincome,netoftax12,282,545(39,307,949)
(1)Othercomprehensiveincome(netoftax)attributabletoshareholdersoftheCompany10,946,939(35,283,306)
Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements10,946,939(35,283,306)
(2)Othercomprehensiveincome(netoftax)attributabletonon-controllinginterests1,335,606(4,024,643)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2022(continued)(ExpressedinRenminbiYuan)

Note

Note20222021
VI.Totalcomprehensiveincomefortheyear443,631,259467,370,424
(1)AttributabletoshareholdersoftheCompany439,628,350464,819,300
(2)Attributabletonon-controllinginterests4,002,9092,551,124
VII.Earningspershare:?
(1)BasicearningspershareV.490.630.73
(2)DilutedearningspershareV.490.630.73

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2022

(ExpressedinRenminbiYuan)

Note

Note20222021
I.OperatingincomeXIV.5675,062,421578,895,802
Less:OperatingcostXIV.5577,316,851472,158,738
Taxesandsurcharges27,984,69538,263,612
Generalandadministrativeexpenses58,441,38674,948,200
Researchanddevelopmentexpenses2,674,191907,975
Financialexpenses(4,912,837)2,193,348
Including:Interestexpenses3,238,2355,870,092
Interestincome10,840,3367,122,455
Add:Otherincome5,318,2096,108,832
InvestmentincomeXIV.6736,516,479867,523,178
Proceedsfromthedisposalofassets33,453-
II.Operatingprofit755,426,276864,055,939
Add:Non-operatingincome3,665,752997,416
Less:Non-operatingexpenses1,281,0473,295,694

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2022(continued)

(ExpressedinRenminbiYuan)

Note

Note20222021
III.Totalprofit757,810,981861,757,661
Less:Incometaxexpenses8,053,8326,703,679
IV.Netprofit749,757,149855,053,982
(i)Netprofitfromcontinuingoperations749,757,149855,053,982
(ii)Netprofitfromdiscontinuedoperations--
V.Othercomprehensiveincome,netoftax--
VI.Totalcomprehensiveincomefortheyear749,757,149855,053,982

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2022(ExpressedinRenminbiYuan)

Note

Note20222021
I.Cashflowsfromoperatingactivities:
Proceedsfromsaleofgoodsandrenderingofservices3,681,133,2823,674,741,084
Refundoftaxes186,197,81548,716,047
ProceedsfromotheroperatingactivitiesV.50(1)61,825,40789,142,251
Sub-totalofcashinflows3,929,156,5043,812,599,382
Paymentforgoodsandservices1,266,006,299957,499,905
Paymenttoandforemployees493,589,542507,532,110
Paymentofvarioustaxes718,434,215659,986,692
PaymentforotheroperatingactivitiesV.50(2)582,249,801562,198,017
Sub-totalofcashoutflows3,060,279,8572,687,216,724
NetcashflowsfromoperatingactivitiesV.51(1)868,876,6471,125,382,658
II.Cashflowsfrominvestingactivities:?
Proceedsfromdisposalofinvestments133,200,00093,553,062
Investmentreturnsreceived1,340,5182,587,932
Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets28,412,6307,923,724
Sub-totalofcashinflows162,953,148104,064,718
Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets198,791,362225,502,766
Paymentforacquisitionofinvestments108,200,00054,218,000
Sub-totalofcashoutflows306,991,362279,720,766
Netcashflowsfrominvestingactivities(144,038,214)(175,656,048)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2022(continued)

(ExpressedinRenminbiYuan)

Note

Note20222021
III.Cashflowsfromfinancingactivities:?
Proceedsfrominvestors-7,840,000
Proceedsfromborrowings641,331,495847,358,786
Sub-totalofcashinflows641,331,495855,198,786
Repaymentsofborrowings903,179,9981,036,788,771
Paymentfordividends,profitdistributionsorinterest333,134,330302,051,763
PaymentforotherfinancingactivitiesV.50(3)19,774,74415,904,567
Sub-totalofcashoutflows1,256,089,0721,354,745,101
Netcashflowsfromfinancingactivities(614,757,577)(499,546,315)
IV.Effectofforeignexchangeratechangesoncashandcashequivalents345,715(518,371)
V.NetincreaseincashandcashequivalentsV.51(1)110,426,571449,661,924
Add:Cashandcashequivalentsatthebeginningoftheyear1,502,327,0291,052,665,105
VI.CashandcashequivalentsattheendoftheyearV.51(2)1,612,753,6001,502,327,029

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2022

(ExpressedinRenminbiYuan)

Note

Note20222021
I.Cashflowsfromoperatingactivities:
Proceedsfromsaleofgoodsandrenderingofservices610,597,839514,762,698
Taxreturnsreceived1,597,879-
Proceedsfromotheroperatingactivities84,262,49047,112,100
Sub-totalofcashinflows696,458,208561,874,798
Paymentforgoodsandservices401,136,965313,397,323
Paymenttoandforemployees67,906,18876,053,780
Paymentofvarioustaxes50,709,75439,248,076
Paymentforotheroperatingactivities23,452,12071,110,685
Sub-totalofcashoutflows543,205,027499,809,864
Netcashflowsfromoperatingactivities153,253,18162,064,934
II.Cashflowsfrominvestingactivities:?
Proceedsfromdisposalofinvestments118,200,00038,200,000
Investmentreturnsreceived489,479,7191,068,448,220
Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets1,853,309408,885
Proceedsfromborrowingstosubsidiaries312,000,000162,200,000
Sub-totalofcashinflows921,533,0281,269,257,105
Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets21,831,77922,919,289
Paymentforacquisitionofinvestments218,200,00038,200,000
Cashpaidtosubsidiaries138,700,000655,000,000
Sub-totalofcashoutflows378,731,779716,119,289
Netcashflowsfrominvestingactivities542,801,249553,137,816

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2022(continued)

(ExpressedinRenminbiYuan)

Note

Note20222021
III.Cashflowsfromfinancingactivities:
Proceedsfromborrowings100,000,000150,000,000
Sub-totalofcashinflows100,000,000150,000,000
Repaymentsofborrowings150,000,000150,000,000
Paymentfordividendsorinterest311,697,035280,055,692
Paymentforotherfinancingactivities4,796,8383,460,687
Sub-totalofcashoutflows466,493,873433,516,379
Netcashflowsfromfinancingactivities(366,493,873)(283,516,379)
IV.Effectofforeignexchangeratechangesoncashandcashequivalents--
V.Netincreaseincashandcashequivalents329,560,557331,686,371
Add:Cashandcashequivalentsatthebeginningoftheyear513,809,440182,123,069
VI.Cashandcashequivalentsattheendoftheyear843,369,997513,809,440

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equityfortheyearended31December2022

(ExpressedinRenminbiYuan)

Note

NoteAttributabletoshareholdersoftheCompanyNon-controllinginterestsTotalshareholders’equity
SharecapitalCapitalreserveOthercomprehensiveincomeSurplusreserveRetainedearningsSub-total
I.Balanceatthebeginningoftheyear685,464,000524,968,760(34,707,177)342,732,0008,929,426,60010,447,884,183244,792,42110,692,676,604
II.Changesinequityduringtheyear????????
(1)Totalcomprehensiveincome--10,946,939-428,681,411439,628,3504,002,909443,631,259
(2)AppropriationofprofitsV.36????????
Distributionstoshareholders----(308,458,800)(308,458,800)(2,268,769)(310,727,569)
III.Balanceattheendoftheyear685,464,000524,968,760(23,760,238)342,732,0009,049,649,21110,579,053,733246,526,56110,825,580,294

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equity(continued)fortheyearended31December2021

(ExpressedinRenminbiYuan)

Note

NoteAttributabletoshareholdersoftheCompanyNon-controllinginterestsTotalshareholders’equity
SharecapitalCapitalreserveOthercomprehensiveincomeSurplusreserveRetainedearningsSub-total
I.Balanceatthebeginningoftheyear685,464,000524,968,760576,129342,732,0008,714,091,75510,267,832,644236,597,99010,504,430,634
Add:Changesinaccountingpolicies----(10,582,161)(10,582,161)-(10,582,161)
Adjustedbalanceatthebeginningoftheyear685,464,000524,968,760576,129342,732,0008,703,509,59410,257,250,483236,597,99010,493,848,473
II.Changesinequityduringtheyear
(1)Totalcomprehensiveincome--(35,283,306)-500,102,606464,819,3002,551,124467,370,424
(2)Shareholders’contributions
Establishmentofsubsidiaries------7,840,0007,840,000
(3)AppropriationofprofitsV.36
Distributionstoshareholders----(274,185,600)(274,185,600)(2,196,693)(276,382,293)
III.Balanceattheendoftheyear685,464,000524,968,760(34,707,177)342,732,0008,929,426,60010,447,884,183244,792,42110,692,676,604

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2022

(ExpressedinRenminbiYuan)

Note

NoteSharecapitalCapitalreserveSurplusreserveRetainedearningsTotalshareholders’equity
I.Balanceatthebeginningoftheyear685,464,000560,182,235342,732,0009,141,561,66510,729,939,900
II.Changesinequityduringtheyear?????
(1)Totalcomprehensiveincome---749,757,149749,757,149
(2)Appropriationofprofits?????
Distributionstoshareholders---(308,458,800)(308,458,800)
III.Balanceattheendoftheyear685,464,000560,182,235342,732,0009,582,860,01411,171,238,249

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(Companystamp)
(Signatureandstamp)(Signatureandstamp)(Signatureandstamp)

Thenotesonpages106to189formpartofthesefinancialstatements.

YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2021(continued)

(ExpressedinRenminbiYuan)

Note

NoteSharecapitalCapitalreserveSurplusreserveRetainedearningsTotalshareholders’equity
I.Balanceatthebeginningoftheyear685,464,000560,182,235342,732,0008,567,313,55110,155,691,786
Add:ChangesinaccountingpoliciesIII.33---(6,620,268)(6,620,268)
Adjustedbalanceatthebeginningoftheyear685,464,000560,182,235342,732,0008,560,693,28310,149,071,518
II.Changesinequityduringtheyear
(1)Totalcomprehensiveincome---855,053,982855,053,982
(2)Appropriationofprofits
Distributionstoshareholders---(274,185,600)(274,185,600)
III.Balanceattheendoftheyear685,464,000560,182,235342,732,0009,141,561,66510,729,939,900

ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon11042023.

ZhouHongjiangLegalRepresentativeJiangJianxunThepersoninchargeofaccountingaffairsGuoCuimeiTheheadoftheaccountingdepartment(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

CategoryEstimatedusefullife(years)Residualvaluerate(%)Depreciationrate(%)
Plantandbuildings20-40years0-5%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:

ClassEstimatedusefullife(years)Residualvaluerate(%)Depreciationrate(%)
Plantandbuildings20-40years0-5%2.4%-5.0%

Machineryequipment

Machineryequipment5-30years0-5%3.2%-20.0%
Motorvehicles4-12years0-5%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

CategoryEstimatedusefullife(years)EstimatednetresidualvaluerateDepreciationrate(%)
Vines20years0%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

ItemAmortisationperiod(years)
Landuserights40-50years
Softwarelicenses5-10years
Trademarks10years

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

ItemAmortisationperiod
Landrequisitionfee50years
Greeningfee5-20years
Leaseholdimprovement3-5years
Others3years

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

TypeoftaxTaxationbasisTaxrate
Value-addedtax(VAT)OutputVATiscalculatedonproductsalesandtaxableservicesrevenue.ThebasisforVATpayableistodeductinputVATfromtheoutputVATfortheperiod13%,9%,6%(China),20%(France),21%(Spain),19%(Chile)and10%(Australia)
ConsumptiontaxBasedontaxablerevenue10%oftheprice,20%ofthepriceandRMB1,000eachton(China)
UrbanmaintenanceandconstructiontaxBasedonVATpaid7%(China)
CorporateincometaxBasedontaxableprofits25%(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

Item20222021
Cashonhand47,95471,486
Bankdeposits1,643,577,4201,558,134,072
Othermonetaryfunds7,828,7418,890,435
Total1,651,454,1151,567,095,993
Including:Totaloverseasdeposits17,073,21028,691,521

Asat31December2022,thebalanceofrestrictedcashoftheGroupisasfollows:

Item20222021
Housemaintenancefunds2,671,7742,678,529

Asat31December2022,theGroup’stermdepositswithpreviousmaturityofmorethanthreemonthsisRMB28,200,000withinterestrate2.025%-2.25%(31December2021:

RMB53,200,000).Asat31December2022,theGroup’sothermonetaryassetsisasfollows:

Item20222021
Depositsforlettersofcredit6,000,0007,900,850
Alipayaccountbalance1,695,245859,558
DepositforICBCplatform10,00010,000
Depositsforthecustoms123,496120,027
Total7,828,7418,890,435

Asat31December2022,theGroupdidnothaveanyspecialinterestarrangementssuchastheestablishmentofjointfundmanagementaccountswithrelatedparties.2Billsreceivable

Classificationofbillsreceivable

Item20222021
Bankacceptancebills2,712,46042,827,666
Total2,712,46042,827,666

Alloftheabovebillsareduewithinoneyear.3Accountsreceivable

(1)Accountsreceivablebycustomertypeareasfollows:

Type31December202231December2021
Amountsduefromrelatedparties2,827,473287,788
Amountsduefromothercustomers355,711,618310,982,372
Sub-total358,539,091311,270,160
Less:Provisionforbadanddoubtfuldebts(14,556,106)(20,263,750)
Total343,982,985291,006,410

Asat31December2022,ownershiprestrictedaccountsreceivableisRMB59,982,807(31December2021:RMB49,061,015),referringtoNoteV.52.

(2)Theageinganalysisofaccountsreceivableisasfollows:

Ageing

Ageing20222021
Within1year(inclusive)356,064,300302,602,474
Over1yearbutwithin2years(inclusive)2,085,6776,450,290
Over2yearsbutwithin3years(inclusive)152,2541,830,913
Over3years236,860386,483
Sub-total358,539,091311,270,160
Less:Provisionforbadanddoubtfuldebts(14,556,106)(20,263,750)
Total343,982,985291,006,410

Theageingiscountedstartingfromthedatewhenaccountsreceivablearerecognised.

(3)Accountsreceivablebyprovisioningmethod

AtalltimestheGroupmeasurestheimpairmentlossforaccountsreceivableatanamountequaltolifetimeECLs,andtheECLsarebasedonthenumberofoverduedaysandthelossgivendefault.AccordingtothehistoricalexperienceoftheGroup,therearenosignificantdifferencesinthelossesofdifferentcustomergroups.Therefore,differentcustomergroupsarenotfurtherdistinguishedwhencalculatingimpairmentlossbasedontheoverdueinformation.2022

Lossgivendefault

LossgivendefaultCarryingamountattheendoftheyearImpairmentlossattheendoftheyear
Current0.3%320,680,504987,421
Overduefor1to30days4.6%14,539,415670,713
Overduefor31to60days12.1%5,412,870654,202
Overduefor61to90days22.9%1,755,591401,918
Overduefor91to120days25.5%852,924217,910
Overduefor121to150days32.3%3,243,3661,047,097
Overduefor151to180days40.0%469,054187,704
Overduefor181to210days42.0%217,21891,181
Overduefor211to240days44.4%636,479282,588
Overduefor241to270days51.7%654,567338,403
Overduefor271to300days71.0%1,058,407751,067
Overduefor301to330days87.7%753,174660,380
Overduefor331to360days100.0%15,26315,263
Overduefor360days100.0%8,250,2598,250,259
Total4.1%358,539,09114,556,106

2021

LossgivendefaultCarryingamountattheendoftheyearImpairmentlossattheendoftheyear
Current0.4%266,055,047951,403
Overduefor1to30days3.3%13,013,133434,869
Overduefor31to60days10.9%8,115,584886,023
Overduefor61to90days23.9%2,554,438610,844
Overduefor91to120days28.9%531,696153,780
Overduefor121to150days40.0%627,641251,314
Overduefor151to180days41.8%1,670,068698,131
Overduefor181to210days50.0%1,129,949565,460
Overduefor211to240days65.6%1,415,345928,263
Overduefor241to270days65.7%3,439,7212,261,159
Overduefor271to300days85.4%1,340,0551,145,021
Overduefor301to330days100.0%638,848638,848
Overduefor331to360days100.0%244,178244,178
Overduefor360days100.0%10,494,45710,494,457
Total6.5%311,270,16020,263,750

Thelossgivendefaultismeasuredbasedontheactualcreditlossexperienceinthepast12months,andisadjustedtakingintoconsiderationthedifferencesamongtheeconomicconditionsduringthehistoricaldatacollectionperiod,thecurrenteconomicconditionsandtheeconomicconditionsduringtheexpectedlifetime.

(4)Movementsofprovisionsforbadanddoubtfuldebts:

2022

20222021
Balanceatthebeginningoftheyearafter(20,263,750)(12,326,606)
Chargefortheyear(15,084,381)(17,855,222)
Recoveriesorreversalsduringtheyear19,837,1789,918,078
Transfersoutduringtheyear954,847-
Balanceattheendoftheyear(14,556,106)(20,263,750)

(5)Fivelargestaccountsreceivablebydebtorattheendoftheyear:

NameRelationshipwiththeGroupBalanceattheendoftheyearAgeingPercentageofendingbalanceofothers(%)Endingbalanceofprovisionforbadanddoubtfuldebts
DebtorOneThirdparty149,053,783Within1year41.6%458,958
DebtorTwoThirdparty6,835,106Within1year1.9%385,547
DebtorThreeThirdparty6,816,495Within1year1.9%384,497
DebtorFourThirdparty6,193,118Within1year1.7%349,334
DebtorFiveThirdparty6,070,804Within1year1.7%18,693
Total174,969,306?48.8%1,597,029

4Receivablesunderfinancing

ItemNote20222021
Billsreceivable(1)309,329,918364,457,497

(1)Asat31December2022,therewasnopledgedbillsreceivable(31December2021:Nil).

(2)Outstandingendorsedordiscountedbillsthathavenotmaturedattheendoftheyear

ItemAmountderecognisedatyearend
Bankacceptancebills500,480,279
Total500,480,279

Asat31December2022,billsendorsedbytheGrouptootherpartieswhicharenotyetdueattheendoftheperiodisRMB500,480,279(31December2021:RMB449,373,119).Thenotesareusedforpaymenttosuppliersandconstructions.TheGroupbelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theGroupwouldundertakelimitedliabilityforthenotes.

5Prepayments

(1)Prepaymentsbycategory:

Item

Item20222021
Prepayments60,415,50875,235,879
Total60,415,50875,235,879

(2)Theageinganalysisofprepaymentsisasfollows:

Ageing20222021
AmountPercentage(%)AmountPercentage(%)
Within1year(inclusive)59,426,08098.4%75,207,09499.9%
Over1yearbutwithin2years(inclusive)989,4281.6%28,7850.1%
Total60,415,508100.0%75,235,879100.0%

Theageingiscountedstartingfromthedatewhenprepaymentsarerecognised.

(3)Fivelargestprepaymentsbydebtorattheendoftheyear:

NameNatureofthereceivableBalanceattheendoftheyearAgeingPercentageofendingbalanceofothers(%)Endingbalanceofprovisionforbadanddoubtfuldebts
DebtorOnePrepayments12,123,832Within1year20.1%-
DebtorTwoPrepayments9,768,618Within1year16.2%-
DebtorThreePrepayments8,796,180Within1year14.6%-
DebtorFourPrepayments3,441,960Within1year5.7%-
DebtorFivePrepayments1,350,000Within1year2.2%-
Total35,480,59058.8%?-

6Otherreceivables

31December202231December2021
Others70,542,39830,125,270
Total70,542,39830,125,270

(1)Interestreceivable

(a)Othersbycustomertype:

Customertype31December202231December2021
Amountsduefromrelatedparties-341,880
Amountsduefromothercompanies70,542,39829,783,390
Sub-total70,542,39830,125,270
Less:Provisionforbadanddoubtfuldebts--
Total70,542,39830,125,270

(b)Theageinganalysisisasfollows:

Ageing

Ageing20222021
Within1year(inclusive)67,221,71327,191,986
Over1yearbutwithin2years(inclusive)1,208,36170,480
Over2yearsbutwithin3years(inclusive)57,928190,857
Over3years2,054,3962,671,947
Sub-total70,542,39830,125,270
Less:Provisionforbadanddoubtfuldebts--
Total70,542,39830,125,270

Theageingiscountedstartingfromthedatewhenotherreceivablesarerecognised.(c)Movementsofprovisionsforbadanddoubtfuldebts

Asat31December2022,nobadanddoubtfuldebtprovisionwasmadeforother

receivables(31December2021:Nil).

Asat31December2022,theGrouphasnootherreceivableswrittenoff(31December

2021:Nil).(d)Otherscategorisedbynature

Natureofotherreceivables20222021
Landpurchasesandreservesreceivable41,268,90211,550,000
RefundofconsumptiontaxandVAT12,509,2017,204,557
Deposit5,578,0014,568,157
Pettycashreceivable440,759252,481
Others10,745,5356,550,075
Sub-total70,542,39830,125,270
Less:Provisionforbadanddoubtfuldebts--
Total70,542,39830,125,270

(e)Fivelargestothers-bydebtorattheendoftheyear

NameNatureofthereceivableBalanceattheendoftheyearAgeingPercentageofendingbalanceofothers(%)Endingbalanceofprovisionforbadanddoubtfuldebts
DebtorOneLandpurchasesandreservesreceivable41,268,902Within1year58.5%-
DebtorTwoRefundofVAT10,927,015Within1year15.5%-
DebtorThreeDeposits2,002,000Within1year2.8%-
DebtorFourRefundofVAT1,582,186Within1year2.2%-
DebtorFiveAdvanceitems1,452,991Within1year2.1%-
Total57,233,09481.1%-

7Inventories

(1)Inventoriesbycategory:

Item

Item20222021
BookvalueProvisionforimpairmentofinventoriesCarryingamountBookvalueProvisionforimpairmentofinventoriesCarryingamount
Rawmaterials258,200,178-258,200,178245,114,403-245,114,403
Workinprogress1,986,391,270-1,986,391,2701,937,081,109-1,937,081,109
Finishedgoods673,171,026(14,363,959)658,807,067634,212,222(13,785,214)620,427,008
Total2,917,762,474(14,363,959)2,903,398,5152,816,407,734(13,785,214)2,802,622,520

(2)Provisionforimpairmentofinventories:

ItemOpeningbalanceIncreaseduringtheyearDecreaseduringtheyearClosingbalance
RecognisedReversal
Finishedgoods13,785,21414,363,959(13,785,214)14,363,959

8Othercurrentassets

Item20222021
Royalty(NoteV.19)120,930,641-
Inputtaxtobecredited44,270,238198,516,812
Prepaidincometaxes19,102,11116,697,663
Deferredexpenses1,034,4031,938,126
Total185,337,393217,152,601

9Long-termequityinvestments

(1)Long-termequityinvestmentsbycategory:

Item20222021
Investmentsinjointventures37,970,53539,652,834
Investmentsinassociates3,400,8506,843,676
Sub-total41,371,38546,496,510
Less:Provisionforimpairment--
Total41,371,38546,496,510

(2)Movementsoflong-termequityinvestmentsduringtheyearareasfollows:

Investee

Investee2022BalanceatthebeginningoftheyearMovementsduringtheyear2022ClosingbalanceShareholdingpercentage
IncreaseincapitalDecreaseincapitalLossesfrominvestmentsunderequity-method
Jointventures?????
SASL&MHoldings(“L&MHoldings”)39,652,834--(1,682,299)37,970,53555%
Associates?????
WEMISS(Shanghai)EnterpriseDevelopmentCo.,Ltd(“WEMISSShanghai”)2,366,811--(48,460)2,318,35130%
Yantai.SantaiRealEstateDevelopmentCo.,Ltd.(Note1)3,519,656-(3,519,656)--35%?
ChengduYufengBrandManagementCo.,Ltd.(Note2)481,472--(61,103)420,36910%?
YantaiGuolongWineIndustryCo.,Ltd.(Note2)475,737--186,393662,13010%?
Sub-total6,843,676-(3,519,656)76,8303,400,850?
Total46,496,510?-(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
Balanceasat31December2021and31December202270,954,045
Accumulateddepreciation
31December2021(46,451,787)
Chargefortheyear(2,386,940)
31December2022(48,838,727)
Carryingamount?
31December202222,115,318
31December202124,502,258

11Fixedassets

(1)Fixedassets

ItemPlant&buildingsMachinery&equipmentMotorvehiclesTotal
Cost
31December20215,294,917,8362,820,909,56327,181,8768,143,009,275
Additionsduringtheyear
-Purchases19,223,03862,551,1001,423,62983,197,767
-Transfersfromconstructioninprogress608,452,6944,638,003-613,090,697
Disposalsorwritten-offsduringtheyear(44,394,513)(94,370,491)(2,716,953)(141,481,957)
31December20225,878,199,0552,793,728,17525,888,5528,697,815,782
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-offsduringtheyear8,567,49471,691,8342,063,42482,322,752
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
31December20224,711,103,6901,313,778,7593,255,5236,028,137,972
31December20214,277,025,6651,406,267,6414,574,0085,687,867,314

Asat31December2022,ownershiprestrictednetvalueoffixedassetsisRMB303,897,124(31December2021:RMB313,012,605),referringtoNoteV.52.

(2)Fixedassetsleasedoutunderoperatingleases

ItemCostAccumulateddepreciationProvisionforimpairmentCarryingamount
Buildings24,150,108(11,271,447)-12,878,661
Machineryequipment19,121,524(16,384,009)(2,685,549)51,966
Motorvehicles3,213,054(3,060,512)-152,542
Total46,484,686(30,715,968)(2,685,549)13,083,169

(3)Fixedassetsleasedoutunderoperatingleases

Item

ItemCarryingamountattheendoftheyear
Machineryequipment4,365

(4)Fixedassetspendingcertificatesofownership

ItemCarryingamountReasonwhythecertificatesarepending
Dormitories,mainbuildingandreceptionbuildingofChanganChateau268,686,071Processing
BuildingsandboilerhousesofKOYABrand173,899,231Processing
Europeantown,mainbuildingandservicebuildingofAFIP164,540,005Processing
OfficeandpackagingshopofGoldenIcewineValley9,436,822Processing
FermentationshopofZhangyu(Jingyang)4,698,998Processing
Office,experimentbuildingandworkshopofFermentationCentre3,147,779Processing
FinishedgoodswarehouseandworkshopofKylinPackaging2,034,138Processing
Others276,938Processing

ThebuildingswithoutpropertycertificateabovehavenosignificantimpactontheGroup’smanagement.12Constructioninprogress

(1)Constructioninprogress

Project20222021
BookvalueProvisionforimpairmentCarryingamountBookvalueProvisionforimpairmentCarryingamount
Museumconstructionproject32,981,419-32,981,41937,093-37,093
ShiheziChateauConstructionProject7,065,744-7,065,7441,028,512-1,028,512
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’ConstructionProject886,998-886,9987,696,803-7,696,803
Total40,934,161-40,934,161590,172,099-590,172,099

(2)Movementsofmajorconstructionprojectsinprogressduringtheyear

Item

ItemBudget(RMBmillion)OpeningbalanceAdditionsduringtheyearTransferstofixedassetsOthertransfersoutClosingbalancePercentageofactualcosttobudget(%)AccumulatedcapitalisedinterestAttributableto:InterestcapitalisedfortheyearInterestrateforcapitalisationin2022(%)Sourcesoffunding
Museumconstructionproject5137,09332,944,326--32,981,41965%-?-?-Self-raised
ShiheziChateauConstructionProject7801,028,5126,037,232--7,065,74497%-?-?-Self-raised
NingxiaChateauConstructionProject4282,835,5981,363,790(4,199,388)--100%-?-?-Self-raised
ChanganChateauConstructionProject6981,245,742718,344(1,964,086)--100%---Self-raised
ChangyuWineComplex3,740577,328,35139,794,848(606,407,063)(10,716,136)-100%17,155,308?--Loansfromfinancialinstitutionsandself-raised

13Bearerbiologicalassets

Bearerbiologicalassetsarevines,whichmeasuredincostmethod.

Item

ItemImmaturebiologicalassetsMaturebiologicalassetsTotal
Originalbookvalue
31December202117,909,982252,353,951270,263,933
Additionsduringtheyear
-Increaseincultivated5,730,3488,7505,739,098
-Transferredtomature(121,173)121,173-
Decreaseduringtheyear(113,600)(12,500)(126,100)
31December202223,405,557252,471,374275,876,931
Accumulatedamortisation
31December2021-(76,550,991)(76,550,991)
Chargefortheyear-(14,911,694)(14,911,694)
Decreaseduringtheyear-6,4956,495
31December2022-(91,456,190)(91,456,190)
Carryingamount
31December202223,405,557161,015,184184,420,741
31December202117,909,982175,802,960193,712,942

Asat31December2022,thereisnobiologicalassetwithownershiprestricted(31December2021:Nil).Asat31December2022,noprovisionforimpairmentofbiologicalassetoftheGroupwasrecognisedasthereisnoanyindicationexists(31December2021:Nil).14Leases

(1)Asalessee

Right-of-useassets

ItemPlant&buildingsLandsOthersTotal
Cost
Balanceatthebeginningoftheyear57,368,820137,980,4091,697,986197,047,215
Additionsduringtheyear27,449,712--27,449,712
Balanceattheendoftheyear84,818,532137,980,4091,697,986224,496,927
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
Attheendoftheyear50,894,57788,313,388679,194139,887,159
Atthebeginningoftheyear39,470,29194,079,9561,018,792134,569,039

Leaseliabilities

Item

ItemNote31December20221January2022
Long-termleaseliabilities128,514,033116,156,677
Less:leaseliabilitiesduewithinoneyearV,2719,008,94014,345,089
Total109,505,093101,811,588

(2)Asalessor

Operatinglease

Item20222021
Leaseincome2,341,2262,015,486

15Intangibleassets

ItemLanduserightsSoftwarelicensesTrademarksTotal
Originalbookvalue
31December2021500,566,714100,664,699189,491,618790,723,031
Additionsduringtheyear
-Purchase-1,314,73083,4501,398,180
Decreaseduringtheyear
-Disposals(24,795,833)--(24,795,833)
31December2022475,770,881101,979,429189,575,068767,325,378
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
-Disposal9,537,891--9,537,891
31December2022(110,698,068)(62,835,583)(15,550,881)(189,084,532)
Carryingamount
31December2022365,072,81339,143,846174,024,187578,240,846
31December2021395,944,56947,138,761174,783,549617,866,879

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

NameofinvesteeoreventsfromwhichgoodwillaroseNote31December2021AdditionsduringtheyearDisposalsduringtheyear31December2022
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-total149,437,671--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)
Carryingamount112,374,541(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

Item31December2021AdditionsduringtheyearAmortisationfortheyear31December2022
Landrequisitionfee46,822,724-(1,778,943)45,043,781
Greeningfee127,686,106-(8,690,102)118,996,004
Leaseholdimprovement104,279,6317,864,611(8,248,878)103,895,364
Others5,804,7021,582,204(622,823)6,764,083
Total284,593,1639,446,815(19,340,746)274,699,232

18Deferredtaxassetsanddeferredtaxliabilities

(1)Deferredtaxassetsandliabilities

Item31December202231December2021
DeductibleortaxabletemporarydifferencesDeferredtaxassets/(liabilities)DeductibleortaxabletemporarydifferencesDeferredtaxassets/(liabilities)
Deferredtaxassets:
Provisionforimpairmentofassets31,605,6148,024,90351,526,99111,522,575
Unrealisedprofitsofintra-grouptransactions431,328,252107,832,063481,484,528120,371,131
Unpaidbonus132,673,26933,168,317150,325,08537,581,271
Terminationbenefits9,422,1542,355,53814,132,1913,533,048
Deductibletaxlosses285,560,64267,483,931266,833,10663,160,456
Deferredincome38,389,0588,288,41141,295,3388,642,716
Others837,972209,4931,598,132399,534
Sub-total929,816,961227,362,6561,007,195,371245,210,731
Deferredtaxliabilities:
Revaluationduetobusinesscombinationsinvolvingentitiesnotundercommoncontrol43,651,10510,577,06546,411,47811,300,970
Others2,759,468689,8672,012,000503,000
Sub-total46,410,57311,266,93248,423,47811,803,970

(2)Detailsofunrecogniseddeferredtaxassets

Item

Item20222021
Deductibletaxlosses352,775,161234,250,359

(3)Expirationofdeductibletaxlossesforunrecogniseddeferredtaxassets

Year20222021
2022-21,367,869
202322,801,73722,801,737
202442,088,45342,088,453
202575,724,53875,794,409
202672,197,89172,197,891
2027139,962,542-
Total352,775,161234,250,359

19Othernon-currentassets

Item20222021
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

Item20222021
Unsecuredloans227,866,802478,331,156
Mortgagedloans127,908,137118,469,193
Guaranteedloans33,603,54125,266,108
Total389,378,480622,066,457

Asat31December2022,detailsofshort-termborrowingswereasfollows:

AmountExchangerateAmountNatureofinterestrateInterestrateInterestrateattheendoftheyear
RMB%%

Creditloans(RMB)

Creditloans(RMB)200,000,0001.0000200,000,000Floating1YearLPR-0.5%3.20%
Creditloans(USD)4,000,0006.964627,866,802Fixed4.15%-5.95%4.15%-5.95%
Mortgagedloans(EUR)8,080,7787.422959,982,807Fixed0.65%-1.60%0.65%-1.60%
Mortgagedloans(USD)9,750,0006.964667,925,330Fixed4.15%-6.76%4.15%-6.76%
Guaranteedloans(AUD)7,128,7584.713833,603,541Floating1.81%-2.54%1.81%-2.54%
Total389,378,480

?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

Ageing20222021
Within1year(inclusive)466,035,065486,006,974
Over1yearbutwithin2years(inclusive)34,588,2754,435,786
Over2yearsbutwithin3years(inclusive)1,637,3901,405,133
Over3years1,063,0161,605,923
Total503,323,746493,453,816

Significantaccountspayablewithageingofmorethanoneyear:

Item

ItemBalanceattheendoftheyearReasonfornorepayment
Entity119,434,600Payabletoparentcompany
Entity213,185,095Creditperiodofmorethan1yearfromoverseasoriginalwinesuppliers
Total32,619,695

22Contractliabilities

ItemAsat31December2022Asat1January2022
Receiptinadvance164,437,033144,013,594
Withholdingsalesrebates1,290,9583,107,122
Total165,727,991147,120,716

ContractliabilitiesprimarilyrelatetotheGroup’sadvancesfromsalescontractsofspecificcustomersandthewithholdingsalesrebates.Relevantcontractliabilitiesarerecognisedasrevenuewhenthecontrolofthegoodsistransferredtothecustomer.23Employeebenefitspayable

(1)Employeebenefitspayable:

Note31December2021AdditionsduringtheyearDecreaseduringtheyear31December2022
Short-termemployeebenefits(2)180,557,897443,469,022(450,829,428)173,197,491
Post-employmentbenefits-definedcontributionplans(3)329,35336,634,508(36,631,968)331,893
Terminationbenefits14,132,1911,418,109(6,128,146)9,422,154
Total195,019,441481,521,639(493,589,542)182,951,538

(2)Short-termemployeebenefits

31December2021AdditionsduringtheyearDecreaseduringtheyear31December2022
Salaries,bonuses,allowances178,842,535392,427,646(401,626,779)169,643,402
Staffwelfare1,640,96517,421,550(17,602,345)1,460,170
Socialinsurance303,83616,415,455(16,412,047)307,244
Medicalinsurance303,83614,763,764(14,760,356)307,244
Work-relatedinjuryinsurance-1,632,827(1,632,827)-
Maternityinsurance-18,864(18,864)-
Housingfund38,58212,431,795(12,431,795)38,582
Labourunionfee,staffandworkers’educationfee1,851,6504,772,576(4,876,133)1,748,093
Sub-total182,677,568443,469,022(452,949,099)173,197,491
Less:Non-currentliabilities2,119,671-(2,119,671)-

Total

Total180,557,897443,469,022(450,829,428)173,197,491

(3)Post-employmentbenefits-definedcontributionplans

31December2021AdditionsduringtheyearDecreaseduringtheyear31December2022
Basicpensioninsurance328,12035,439,551(35,437,011)330,660
Unemploymentinsurance1,2331,194,957(1,194,957)1,233
Total329,35336,634,508(36,631,968)331,893

24Taxespayable

Item20222021
Value-addedtax42,260,46554,103,944
Consumptiontax45,524,17470,563,701
Corporateincometax131,264,991194,566,746
Individualincometax1,199,990872,252
Taxontheuseofurbanland1,899,8402,441,121
Educationsurcharges2,731,8575,199,891
Urbanmaintenanceandconstructiontax6,168,9907,128,647
Others8,645,5957,445,998
Total239,695,902342,322,300

25Otherpayables

Note31December202231December2021
Interestpayable88,889323,074
Dividendspayable70,31768,392
Others(1)372,449,483452,642,025
Total372,608,689453,033,491

(1)Others

(a)Detailsofothersbynatureareasfollows:

Item20222021
Depositpayabletodealer207,492,570241,414,134
Advertisingfeepayable40,244,60141,264,460
Equipmentandconstructionfeepayable15,976,57344,345,312
Freightchargespayable25,894,81629,192,798
Depositsduetosuppliers13,549,01012,966,789
Contractingfeepayable7,407,0938,668,872
Staffdeposit508,175743,460
Others61,376,64574,046,200
Total372,449,483452,642,025

(b)Therearenosignificantothersagedoveroneyearaccuredthisyear.

26Othercurrentliabilities

Item

ItemAsat31December2022Asat31December2021
Taxtobetransferredoutassales18,945,70618,374,193
Total18,945,70618,374,193

27Non-currentliabilitiesduewithinoneyear

Non-currentliabilitiesduewithinoneyearbycategoryareasfollows:

Item20222021
Long-termloansduewithinoneyear103,011,89474,520,037
Long-termpayablesduewithinoneyear22,000,00022,000,000
Long-termleaseliabilitiesduewithinoneyear19,008,94014,345,089
Total144,020,834110,865,126

28Long-termloans

Long-termloansbycategory

Item20222021
Creditloans186,342,909193,475,080
Guaranteedloans44,781,10057,092,000
Less:Long-termloansduewithinoneyear103,011,89474,520,037
Total128,112,115176,047,043

Asat31December2022,detailsoflong-termborrowingswereasfollows:

AmountExchangerateAmountNatureofinterestrateInterestrateInterestrateattheendoftheyearLong-termloansduewithinoneyearLong-termloansdueafteroneyear
RMB%%
Creditloans(EUR)24,698,1217.4229183,331,681Fixed1.50%-3.65%1.50%-3.65%103,011,89480,319,787
Guaranteedloans(RMB)405,667?7.4229?3,011,228Floating2.85%-3.35%?2.85%-3.35%?-?3,011,228?
Guaranteedloans(AUD)9,500,0004.713844,781,100FloatingBBSY+1.10%2.29%-44,781,100
Total??231,124,009??103,011,894128,112,115

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

Item20222021
AgriculturalDevelopmentFundofChina(“CADF”)64,000,00086,000,000
Less:Long-termpayablesduewithinoneyear22,000,00022,000,000
Balanceoflong-termpayables42,000,00064,000,000

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-termpayablesReturnoninvestmentInvestmentdateTerminationdateofrepaymentDuewithinoneyearDueafteroneyearMortgagedandpledgedassets
RMBRMBRMB
64,000,0001.20%29February201628February202522,000,00042,000,000Fixedassetsandintangibleassets

30Deferredincome

Item31December2021AdditionsduringtheyearDecreaseduringtheyear31December2022
Governmentgrants41,295,3389,153,000(12,059,280)38,389,058

Governmentgrants:

Liability31December2021AdditionsofgovernmentgrantsduringtheyearAmountsrecognisedinotherincomeduringtheyear31December2022Relatedtoassets/income
Industrialdevelopmentsupportproject20,500,000-(4,100,000)16,400,000Governmentgrantsrelatedtoassets
Xinjiangindustrialrevitalisationandtechnologicaltransformationproject11,376,000-(1,422,000)9,954,000Governmentgrantsrelatedtoassets
Retainingwallsubsidies-6,380,000(406,667)5,973,333Governmentgrantsrelatedtoassets
Coalsubsidy2,079,711--2,079,711Governmentgrantsrelatedtoassets
Winefermentationcapacityconstruction(Huanren)project2,000,000-(400,000)1,600,000Governmentgrantsrelatedtoassets
Specialfundforefficientwater-savingirrigationproject1,153,000-(162,000)991,000Governmentgrantsrelatedtoassets
Engineeringtechnologytransformationofinformationsystemproject1,160,000-(580,000)580,000Governmentgrantsrelatedtoassets
Subsidyforeconomicandenergy-savingtechnologicaltransformationprojects641,500-(128,300)513,200Governmentgrantsrelatedtoassets
SubsidyformechanicdevelopmentofPenglaiDaliuhangBase225,588-(135,180)90,408Governmentgrantsrelatedtoassets
Specialgovernmentgrantforinfrastructure1,060,000-(1,060,000)-Governmentgrantsrelatedtoassets
Liquorelectronictrackingproject524,095-(524,095)-Governmentgrantsrelatedtoassets
FixedassetinvestmentrewardofShiheziChateauproject156,600-(156,600)-Governmentgrantsrelatedtoassets
Subsidyforboilerreconstructionanddemolition60,000-(60,000)-Governmentgrantsrelatedtoassets
SpecialFundsforInnovation-DrivenDevelopmentofYantaiCity308,844-(136,438)172,406Relatedtoincome
PrizefromIndustrialDesignCompetitionofYantaiMayor’sCup50,000-(15,000)35,000Relatedtoincome
Wineindustrydevelopmentproject-2,773,000(2,773,000)-Relatedtoincome
Total41,295,3389,153,000(12,059,280)38,389,058

31Othernon-currentliabilities

Item

Item31December202231December2021
Employeebenefitspayable-2,119,671

32Sharecapital

At31December2021and31December2022
UnrestrictedAshares453,460,800
Bshares232,003,200
Totalofunrestrictedshares685,464,000

33Capitalreserve

Item31December2021AdditionsduringtheyearDecreaseduringtheyear31December2022
Sharepremium519,052,172--519,052,172
Others5,916,588--5,916,588
Total524,968,760--524,968,760

34Othercomprehensiveincome

ItemBalanceatthebeginningoftheyearattributabletoshareholdersoftheCompanyAccruedduringtheyearBalanceattheendoftheyearattributabletoshareholdersoftheCompany
Before-taxamountLess:PreviouslyrecognisedamounttransferredtoprofitorlossLess:IncometaxexpensesNet-of-taxamountattributabletoshareholdersoftheCompanyNet-of-taxamountattributabletonon-controllinginterests
Itemsthatmaybereclassifiedtoprofitorloss
Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements(34,707,177)12,282,545--10,946,9391,335,606(23,760,238)

35Surplusreserve

Item31December202231December2021
Statutorysurplusreserve342,732,000342,732,000

InaccordancewiththeCompanyLawandtheArticlesofAssociationCompany,theCompanyappropriated10%ofitsnetprofittostatutorysurplusreserve.Theappropriationtothestatutorysurplusreservemaybeceasedwhentheaccumulatedappropriationreachesover50%oftheregisteredcapitaloftheCompany.TheCompanydoesnotappropriatenetprofittothesurplusreservein2022assurplusreserveoftheCompanyisabove50%oftheregisteredcapital.TheCompanycanappropriatediscretionarysurplusreserveafterappropriationofthestatutorysurplusreserve.Discretionarysurplusreservecanbeutilisedtooffsetthedeficitorincreasethesharecapitalafterapproval.

36Retainedearnings

Item

ItemNote20222021
Retainedearningsatthebeginningoftheyear(beforeadjustment)8,929,426,6008,714,091,755
Impactofretrospectiveadjustmentofaccountingstandards-(10,582,161)
Retainedearningsatthebeginningoftheyear(afteradjustment)8,929,426,6008,703,509,594
Add:NetprofitsfortheyearattributabletoshareholdersoftheCompany428,681,411500,102,606
Less:Dividendstoordinaryshares(1)(308,458,800)(274,185,600)
Retainedearningsattheendoftheyear(2)9,049,649,2118,929,426,600

(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

Item20222021
IncomeCostIncomeCost
Principalactivities3,860,311,3181,651,154,4243,879,875,3961,604,954,772
Otheroperatingactivities58,629,84229,640,30873,192,18742,835,102
Total3,918,941,1601,680,794,7323,953,067,5831,647,789,874
Including:Revenuefromcontractswithcustomers3,916,599,9341,679,459,9683,951,052,0971,646,424,782
Rentincome2,341,2261,334,7642,015,4861,365,092

(1)Disaggregationofrevenuefromcontractswithcustomers:

Typeofcontract20222021
Bytypeofgoodsorservices
-Liquor3,860,311,3183,879,875,396
-Others56,288,61671,176,701
Bytimingoftransferringgoodsorservices
-Revenuerecognisedatapointintime3,916,599,9343,951,052,097

38Taxesandsurcharges

Item

Item20222021
Consumptiontax198,284,289164,791,894
Urbanmaintenanceandconstructiontax28,067,93130,604,422
Educationsurcharges19,554,86422,147,840
Propertytax28,150,52128,005,705
Taxontheuseofurbanland11,403,39411,654,759
Stampduty3,230,8566,488,829
Others964,772364,121
Total289,656,627264,057,570

39Sellinganddistributionexpenses

Item20222021
Salariesandbenefits282,395,182308,876,899
Marketingfee322,593,973251,443,176
Labourservicefee108,784,93496,864,855
Depreciationexpense47,509,21748,014,605
Storagerental25,572,28228,110,876
Advertisingfee75,862,42591,168,885
Royalty21,877,17124,763,872
Travellingexpenses23,759,49321,624,100
Designandproductionfee30,594,51930,247,672
Conferencefee8,735,65920,088,371
Water,electricityandgasfee16,438,41014,988,125
Others64,842,87362,762,669
Total1,028,966,138998,954,105

40Generalandadministrativeexpenses

Item20222021
Salariesandbenefits73,824,67073,920,103
Depreciationexpenses85,366,36179,928,195
Repaircosts11,853,53816,467,478
Administrativeexpenses23,586,68026,124,859
Amortisationexpenses18,057,90919,354,205
Amortisationofgreeningfee17,846,26519,186,231
Rentalcharge122,0975,735,121
Safetyproductioncosts11,539,60211,190,158
Securityandcleaningfee8,530,0507,455,965
Contractingfee4,309,2909,192,907
Others32,569,06930,521,154
Total287,605,531299,076,376

41Financialexpenses

Item

Item20222021
Interestexpensesfromloansandpayables22,174,50124,504,339
Interestexpensesfromleaseliabilities4,682,3895,292,452
Less:Borrowingcostscapitalised-945,185
Interestincomefromdeposits(24,186,351)(19,558,354)
Netexchangelosses3,301,7168,296,888
Otherfinancialexpenses1,283,9523,588,587
Total7,256,20721,178,727

Fiscalinterestsubsidyduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.42Otherincome

Item20222021Relatedtoassets/income
Industrialdevelopmentsupportproject4,100,0004,100,000Governmentgrantsrelatedtoassets
Wineproductioncapacityconstructionproject400,000400,000Governmentgrantsrelatedtoassets
XinjiangIndustrialRevitalizationandTechnologicalTransformationProject1,422,0001,422,000Governmentgrantsrelatedtoassets
Specialsubsidiesforinfrastructuresupport1,060,0001,060,000Governmentgrantsrelatedtoasse
ShandongPeninsulaBlueEconomicAreaconstructionfunds-2,000,000Governmentgrantsrelatedtoassets
Others-Governmentgrantsrelatedtoassets2,152,8424,451,324Governmentgrantsrelatedtoassets
Specialfundsforthedevelopmentofenterprises8,380,7376,815,339Relatedtoincome
Taxrefunds7,592,34213,747,870Relatedtoincome
WineIndustryDevelopmentProject2,773,000186,000Relatedtoincome
Others-Governmentgrantsrelatedtoincome5,264,51914,058,208Relatedtoincome
Total33,145,44048,240,741

Otherincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.43Investmentlosses

Investmentlossesbyitem

Item20222021
Long-termequityinvestmentlossesunderequitymethod(1,605,469)(2,784,997)
Investmentlossarisingfromdisposaloflong-termequityinvestments(1,842,325)-
Total(3,447,794)(2,784,997)

44Creditreversal/(losses)

Item

Item20222021
Accountsreceivable4,752,797(7,937,144)
Total4,752,797(7,937,144)

45Impairmentlosses

Item20222021
Inventories(578,745)689,420
Goodwill(5,210,925)(20,563,671)
Total(5,789,670)(19,874,251)

46Lossfromassetdisposals

Item20222021
Lossfromdisposaloffixedassets16,191,90311,939,284

Lossfromdisposalofassetsduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.47Non-operatingincomeandnon-operatingexpenses

(1)Non-operatingincomebyitemisasfollows:

Item20222021
Insurancecompensation3,038,5601,069,670
Netincomefromfine566,3341,068,169
Inventorystocktakesurplus-1,019,314
Others3,227,9152,057,151
Total6,832,8095,214,304

Non-operatingincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.

(2)Non-operatingexpenses

Item20222021
Compensation,penaltyandfineexpenses723,1611,761,266
Donationsprovided693,625900,000
Lossesfromdamageorscrappingofnoncurrentassets867,7963,425,709
Others665,409224,869
Total2,949,9916,311,844

Non-operatingexpensesduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.

48Incometaxexpenses

Item

ItemNote20222021
Currenttaxexpensefortheyearbasedontaxlawandregulations176,922,552248,208,920
Changesindeferredtaxassets/liabilities(1)17,311,037(39,188,099)
Total194,233,589209,020,821

(1)Theanalysisofchangesindeferredtaxissetoutbelow:

Item20222021
Originationoftemporarydifferences17,311,037(39,188,099)
Total17,311,037(39,188,099)

(2)Reconciliationbetweenincometaxexpensesandaccountingprofit:

Item20222021
Profitbeforetaxation625,582,303715,699,194
Estimatedincometaxat25%156,395,576178,924,799
Effectofdifferenttaxratesappliedbysubsidiaries3,875,6367,223,819
Effectofnon-deductiblecosts,expenseandlosses6,207,9829,480,180
Effectofdeductiblelossesofdeferredtaxassetsnotrecognisedfortheyear26,681,65212,159,985
Deferredtaxassetswritten-off1,072,7431,232,038
Incometaxexpenses194,233,589209,020,821

49Basicearningspershareanddilutedearningspershare

(1)Basicearningspershare

BasicearningspershareiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:

20222021
ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany428,681,411500,102,606
Weightedaveragenumberofordinarysharesoutstanding685,464,000685,464,000
Basicearningspershare(RMB/share)0.630.73

Weightedaveragenumberofordinarysharesiscalculatedasfollows:

20222021
Issuedordinarysharesatthebeginningoftheyear685,464,000685,464,000
Weightedaveragenumberofordinarysharesattheendoftheyear685,464,000685,464,000

(2)TheGroupdoesnothaveanypotentialdilutiveordinarysharesforthelistedyears.

50Cashflowstatement

(1)Proceedsrelatingtootheroperatingactivities:

Item

Item20222021
Governmentgrants30,239,16036,882,470
Penaltyincome566,3341,068,169
Interestincomefrombank22,845,83319,558,354
Others8,174,08031,633,258
Total61,825,40789,142,251

(2)Paymentsrelatingtootheroperatingactivities:

Item20222021
Sellinganddistributionexpenses443,486,326430,962,311
Generalandadministrativeexpenses92,510,326128,747,237
Others46,253,1492,488,469
Total582,249,801562,198,017

(3)Proceedsrelatingtootherfinancingactivities:

Item20222021
Cashpaidforlease19,774,74415,904,567
Total19,774,74415,904,567

51Supplementaryinformationoncashflowstatement

(1)Supplementtocashflowstatement

a.Reconciliationofnetprofittocashflowsfromoperatingactivities:

Item

Item20222021
Netprofit431,348,714506,678,373
Add:Credit/assetimpairmentlosses1,036,87327,811,395
Depreciationoffixedassetsandinvestmentproperty314,038,019271,154,064
Amortisationofintangibleassets25,766,27119,914,969
Amortisationoflong-termdeferredexpenses19,340,74619,256,179
Amortisationofbiologicalassets14,911,69413,721,424
DepreciationofROUassets22,131,59216,773,427
Lossesfromdisposaloffixedassets,intangibleassets,andotherlong-termassets17,059,69915,364,993
Financialexpenses25,170,65826,782,042
Royalty21,877,17124,763,872
Investmentlosses3,447,7942,784,997
Decrease/(Increase)indeferredtaxassets17,848,075(38,969,456)
Decreaseindeferredtaxliabilities(537,038)(218,643)
(Increase)/Decreaseingrossinventories(101,354,740)143,615,551
Decrease/(Increase)inoperatingreceivables165,687,398(187,412,623)
(Dncrease)/Iecreaseinoperatingpayables(108,896,279)263,362,094
Netcashflowsfromoperatingactivities868,876,6471,125,382,658

b.Significantinvestingandfinancingactivitiesnotrequiringtheuseofcash:

Item20222021
Paymentofconstructioninprogressandotherlong-termassetsbybankacceptances40,584,15260,224,230

c.Changeincashandcashequivalents:

Item20222021
Cashequivalentsattheendoftheyear1,612,753,6001,502,327,029
Less:Cashequivalentsatthebeginningoftheyear1,502,327,0291,052,665,105
Netincreaseincashandcashequivalents110,426,571449,661,924

(3)Detailsofcashandcashequivalents

Item

Item20222021
Cashatbankandonhand
Including:Cashonhand47,95471,486
Bankdepositsavailableondemand1,612,705,6461,502,255,543
Closingbalanceofcashandcashequivalents1,612,753,6001,502,327,029

52Assetswithrestrictiveownershiptitleorrightofuse

ItemOpeningbalanceBalanceattheendoftheyearReasonforrestriction
Cashatbankandonhand11,568,96410,500,515TheCompanydepositsforlettersofcreditetc.
Accountreceivable(i)49,061,01559,982,807Short-termborrowingsmortgagefromAtrio
Fixedassets313,012,605303,897,124R&DCentremortgageforlong-termpayablesandlong-termandshort-termborrowings
Intangibleassets201,345,477169,385,254R&DCentremortgageforlong-termpayables
Total574,988,061543,765,700

(i)Asat31December2022,theamountofaccountsreceivablewithrestrictedownership

isEUR8,080,778,equivalentofRMB59,982,807whichreferstoaccountsreceivableAtrioconductedforfactoringfromBancodeSabadell,S.A.Etc.(31December2021:

EUR6,795,437,equivalentofRMB49,061,015)

VI.Interestsinotherentities1Interestsinsubsidiaries

(1)CompositionoftheGroup

NameoftheSubsidiary

NameoftheSubsidiaryPrincipalplaceofbusinessRegisteredplaceBusinessnatureRegisteredcapitalShareholdingratio(%)Acquisitionmethod
(orsimilarequityinterest)
XinjiangTianzhuWineCo.,Ltd.(“XinajingTianzhu”)Shihezi,Xinjiang,ChinaShihezi,Xinjiang,ChinaManufacturingRMB75,000,00060-Businesscombinationsinvolvingentitiesnotundercommoncontrol
EtablissementsRoulletFransac(“RoulletFransac”)Cognac,FranceCognac,FranceTradingEUR2,900,000-100Businesscombinationsinvolvingentitiesnotundercommoncontrol
DicotPartners,S.L(“Dicot”)Navarre,SpainNavarre,SpainMarketingandsalesEUR2,000,00090-Businesscombinationsinvolvingentitiesnotundercommoncontrol
Vi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSpA.(“ChileIndomitaWineGroup”)Santiago,ChileSantiago,ChileMarketingandsalesCLP31,100,000,00085-Acquiredthroughestablishmentorinvestment
KilikanoonEstatePtyLtd.(“AustraliaKilikanoonEstate”)Adelaide,AustraliaAdelaide,AustraliaMarketingandsalesAUD6,420,00097.5-Businesscombinationsinvolvingentitiesnotundercommoncontrol
BeijingChangyuSalesandDistributionCo.,Ltd(“BeijingSales”)Beijing,ChinaBeijing,ChinaMarketingandsalesRMB1,000,000100-Acquiredthroughestablishmentorinvestment
YantaiKylinPackagingCo.,Ltd.(“KylinPackaging”)Yantai,Shandong,ChinaYantai,Shandong,ChinaManufacturingRMB15,410,000100-Acquiredthroughestablishmentorinvestment
YantaiChateauChangyu-CastelCo.,Ltd(“ChateauChangyu”)(c)Yantai,Shandong,ChinaYantai,Shandong,ChinaManufacturingUSD5,000,00070-Acquiredthroughestablishmentorinvestment
Changyu(Jingyang)WineCo.,Ltd.(“JingyangWine”)Xianyang,Shaanxi,ChinaXianyang,Shaanxi,ChinaManufacturingRMB1,000,0009010Acquiredthroughestablishmentorinvestment
YantaiChangyuPioneerWineSalesCo.,Ltd.(“SalesCompany”)Yantai,Shandong,ChinaYantai,Shandong,ChinaMarketingandsalesRMB8,000,000100-Acquiredthroughestablishmentorinvestment
LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd(“LangfangCastel”)Langfang,Hebei,ChinaLangfang,Hebei,ChinaManufacturingUSD6,108,8183910Acquiredthroughestablishmentorinvestment
Changyu(Jingyang)WineSalesCo.,Ltd.(“JingyangSales”)Xianyang,Shaanxi,ChinaXianyang,Shaanxi,ChinaMarketingandsalesRMB1,000,0001090Acquiredthroughestablishmentorinvestment
LangfangChangyuPioneerWineSalesCo.,Ltd(“LangfangSales”)Langfang,Hebei,ChinaLangfang,Hebei,ChinaMarketingandsalesRMB1,000,0001090Acquiredthroughestablishmentorinvestment

NameoftheSubsidiary

NameoftheSubsidiaryPrincipalplaceofbusinessRegisteredplaceBusinessnatureRegisteredcapitalShareholdingratio(%)Acquisitionmethod
(orsimilarequityinterest)
ShanghaiChangyuSalesandDistributionCo.,Ltd.(“ShanghaiSales”)Shanghai,ChinaShanghai,ChinaMarketingandsalesRMB1,000,000100-Acquiredthroughestablishmentorinvestment
BeijingChangyuAFIPAgriculturedevelopmentCo.,Ltd(“AgricultureDevelopment”)Miyun,Beijing,ChinaMiyun,Beijing,ChinaMarketingandsalesRMB1,000,000-100Acquiredthroughestablishmentorinvestment
BeijingChateauChangyuAFIPGlobalCo.,Ltd.(“AFIP”)(d)Beijing,ChinaBeijing,ChinaManufacturingRMB642,750,00091.53-Acquiredthroughestablishmentorinvestment
YantaiChangyuWineSalesCo.,Ltd.(“WinesSales”)Yantai,Shandong,ChinaYantai,Shandong,ChinaMarketingandsalesRMB5,000,0009010Acquiredthroughestablishmentorinvestment
YantaiChangyuPioneerInternationalCo.,Ltd.(“PioneerInternational”)Yantai,Shandong,ChinaYantai,Shandong,ChinaMarketingandsalesRMB5,000,0007030Acquiredthroughestablishmentorinvestment
HangzhouChangyuWineSalesCo.,Ltd.(“HangzhouChangyu”)Hangzhou,Zhejiang,ChinaHangzhou,Zhejiang,ChinaMarketingandsalesRMB500,000-100Acquiredthroughestablishmentorinvestment
NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”)Yinchuan,Ningxia,ChinaNingxia,ChinaPlatingRMB1,000,000100-Acquiredthroughestablishmentorinvestment
HuanrenChangyuNationalWinesSalesCo.,Ltd.(“NationalWines”)Benxi,Liaoning,ChinaBenxi,Liaoning,ChinaMarketingandsalesRMB2,000,000100-Acquiredthroughestablishmentorinvestment
LiaoningChangyuGoldenIcewineValleyCo.,Ltd.(“GoldenIcewineValley”)(e)Benxi,Liaoning,ChinaBenxi,Liaoning,ChinaManufacturingRMB59,687,30051-Acquiredthroughestablishmentorinvestment
YantaiDevelopmentZoneChangyuTradingCo.,Ltd(“DevelopmentZoneTrading”)Yantai,Shandong,ChinaYantai,Shandong,ChinaMarketingandsalesRMB5,000,000-100Acquiredthroughestablishmentorinvestment
BeijingAFIPMeetingCenter(“MeetingCenter”)Miyun,Beijing,ChinaMiyun,Beijing,ChinaServicesRMB500,000-100Acquiredthroughestablishmentorinvestment
BeijingAFIPTourismandCulture(“AFIPTourism”)Miyun,Beijing,ChinaMiyun,Beijing,ChinaTourismRMB500,000-100Acquiredthroughestablishmentorinvestment
Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”)Ningxia,ChinaNingxia,ChinaManufacturingRMB1,000,000100-Acquiredthroughestablishmentorinvestment
YantaiChangyuChateauTinlotCo.,Ltd.(“ChateauTinlot”)Yantai,Shandong,ChinaYantai,Shandong,ChinaWholesaleandretailRMB400,000,0006535Acquiredthroughestablishmentorinvestment
XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”)Shihezi,Xinjiang,ChinaShihezi,Xinjiang,ChinaManufacturingRMB550,000,000100-Acquiredthroughestablishmentorinvestment
NingxiaChateauChangyuMoserXVCo.,Ltd.(“ChateauNingxia”)Yinchuan,Ningxia,ChinaYinchuan,Ningxia,ChinaManufacturingRMB2,000,000100-Acquiredthroughestablishmentorinvestment
ShaanxiChateauChangyuRenaCo.,Ltd.(“ChateauChangan”)Xianyang,Shaanxi,ChinaXianyang,Shaanxi,ChinaManufacturingRMB20,000,000100-Acquiredthroughestablishmentorinvestment
YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”)(f)Yantai,Shandong,ChinaYantai,Shandong,ChinaManufacturingRMB805,000,00088.65-Acquiredthroughestablishmentorinvestment

NameoftheSubsidiary

NameoftheSubsidiaryPrincipalplaceofbusinessRegisteredplaceBusinessnatureRegisteredcapitalShareholdingratio(%)Acquisitionmethod
(orsimilarequityinterest)
Changyu(HuanRen)WineCo.,Ltd(“HuanRenWine”)Benxi,Liaoning,ChinaBenxi,Liaoning,ChinaWineproductionprojectingRMB5,000,000100-Acquiredthroughestablishmentorinvestment
XinjiangChangyuSalesCo.,Ltd(“XinjiangSales”)Shihezi,Xinjiang,ChinaShihezi,Xinjiang,ChinaMarketingandsalesRMB10,000,000-100Acquiredthroughestablishmentorinvestment
NingxiaChangyuTradingCo.,Ltd(“NingxiaTrading”)Yinchuan,Ningxia,ChinaYinchuan,Ningxia,ChinaMarketingandsalesRMB1,000,000-100Acquiredthroughestablishmentorinvestment
ShaanxiChangyuRenaWineSalesCo.,Ltd(“ShaanxiSales”)Xianyang,Shaanxi,ChinaXianyang,Shaanxi,ChinaMarketingandsalesRMB3,000,000-100Acquiredthroughestablishmentorinvestment
PenglaiChangyuWineSalesCo.,Ltd(“PenglaiSales”)Penglai,Shandong,ChinaPenglai,Shandong,ChinaMarketingandsalesRMB5,000,000-100Acquiredthroughestablishmentorinvestment
LaizhouChangyuWineSalesCo.,Ltd(“LaizhouSales”)Laizhou,Shandong,ChinaLaizhou,Shandong,ChinaMarketingandsalesRMB1,000,000-100Acquiredthroughestablishmentorinvestment
FrancsChampsParticipationsSAS(“FrancsChamps”)Cognac,FranceCognac,FranceInvestmentandtradingEUR32,000,000100-Acquiredthroughestablishmentorinvestment
YantaiRoulletFransacWineSalesCo.,Ltd.(“YantaiRoulletFransac”)Yantai,Shandong,ChinaYantai,Shandong,ChinaMarketingandsalesRMB1,000,000-100Acquiredthroughestablishmentorinvestment
YantaiChangyuWineSalesCo.,Ltd.(“WineSalesCompany”)Yantai,Shandong,ChinaYantai,Shandong,ChinaMarketingandsalesRMB5,000,000100-Acquiredthroughestablishmentorinvestment
ShaanxiChateauChangyuRenaTourismCo.,Ltd(“ChateauTourism”)Xianxin,Shaanxi,ChinaXianxin,Shaanxi,ChinaTourismRMB1,000,000-100Acquiredthroughestablishmentorinvestment
LongkouChangyuWineSalesCo.,Ltd(“LongkouSales”)Yantai,Shandong,ChinaYantai,Shandong,ChinaMarketingandsalesRMB1,000,000-100Acquiredthroughestablishmentorinvestment
YantaiChangyuCulturalTourismDevelopmentCo.,Ltd("CultureDevelopment")Yantai,Shandong,ChinaYantai,Shandong,ChinaTourismRMB10,000,000100-Acquiredthroughestablishmentorinvestment
YantaiChangyuWineCultureMuseumCo.,Ltd.("Museum")Yantai,Shandong,ChinaYantai,Shandong,ChinaTourismRMB500,000-100Acquiredthroughestablishmentorinvestment
YantaiChangyuCultureTourismProductionSalesCo.,Ltd.(“CultureSales”)Yantai,Shandong,ChinaYantai,Shandong,ChinaTourismRMB5,000,000-100Acquiredthroughestablishmentorinvestment
YantaiChangyuInternationalWindowoftheWineCityCo.,Ltd.(“WindowoftheWineCity”)Yantai,Shandong,ChinaYantai,Shandong,ChinaTourismRMB60,000,000-100Acquiredthroughestablishmentorinvestment
YantaiKOYABrandyChateauCo.,Ltd(“ChateauKOYA”)Yantai,Shandong,ChinaYantai,Shandong,ChinaManufacturingRMB10,000,000100-Acquiredthroughestablishmentorinvestment
Changyu(Shanghai)InternationalDigitalMarketingCenterLimited(“DigitalMarketing”)Shanghai,ChinaShanghai,ChinaMarketingandsalesRMB50,000,000100-Acquiredthroughestablishmentorinvestment

NameoftheSubsidiary

NameoftheSubsidiaryPrincipalplaceofbusinessRegisteredplaceBusinessnatureRegisteredcapitalShareholdingratio(%)Acquisitionmethod
(orsimilarequityinterest)
ShanghaiChangyuGuoquDigitalTechnologyCo.,Ltd.(“ShanghaiGuoqu”)(b)Shanghai,ChinaShanghai,ChinaMarketingandsalesRMB6,000,000-51Acquiredthroughestablishmentorinvestment
TianjinChangyuYixinDigitalTechnologyCo.,Ltd.(“TianjinYixin”)(b)Tianjin,ChinaTianjin,ChinaMarketingandsalesRMB10,000,000-51Acquiredthroughestablishmentorinvestment
ShanghaiChangyuYixinDigitalTechnologyCo.,Ltd.(“ShanghaiYixin”)(b)Shanghai,ChinaShanghai,ChinaMarketingandsalesRMB10,000,000-51Acquiredthroughestablishmentorinvestment
YantaiCreightonCateringCompanyLimited("CreightonCatering")Yantai,Shandong,ChinaYantai,Shandong,ChinaServicesRMB1,000,000100Acquiredthroughestablishmentorinvestment

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

NameoftheSubsidiaryProportionofownershipinterestheldbynon-controllinginterestsComprehensiveincomeattributabletonon-controllinginterestsfortheyearDividenddeclaredtonon-controllingshareholdersduringtheyearBalanceofnon-controllinginterestsattheendoftheyear
XinjiangTianzhu40%3,823,000-(40,902,990)
AFIP8.47%--(56,409,393)
GoldenIcewineValley49%1,663,793-(31,655,269)
IWCC15%(4,458,010)1,906,484(57,264,506)

(3)Keyfinancialinformationaboutmaterialnon-whollyownedsubsidiaries

Thefollowingtablesetsoutthekeyfinancialinformationoftheabovesubsidiarieswithoutoffsettinginternaltransactions,butwithadjustmentsmadeforthefairvalueadjustmentattheacquisitiondateandanydifferencesinaccountingpolicies:

XinjiangTianzhu

XinjiangTianzhuAFIPGoldenIcewineValleyChileIndomitaWineGroup
20222021202220212022202120222021
Currentassets33,532,30722,642,150251,902,602249,865,39115,243,03524,018,451221,192,234196,488,084
Non-currentassets23,267,65343,852,510399,165,555414,851,16324,918,24224,450,344320,233,623314,756,823
Totalassets56,799,96066,494,660651,068,157664,716,55440,161,27748,468,795541,425,857511,244,907
Currentliabilities131,477130,10822,424,42527,459,3528,064,39612,976,418140,793,252130,027,677
Non-currentliabilities5,336,1145,336,1143,020,582---11,311,5868,906,387
Totalliabilities5,467,5915,466,22225,445,00727,459,3528,064,39612,976,418152,104,838138,934,064
Operatingincome--175,992,960191,463,78317,040,41224,236,758238,351,323226,856,381
Net(loss)/profit(9,557,501)(3,480,276)(3,366,711)2,326,063(3,395,496)(6,425,183)23,561,99219,716,978
Totalcomprehensiveincome(9,557,501)(3,480,276)(3,366,711)2,326,063(3,395,496)(6,425,183)29,720,0663,284,057
Cashflowsfromoperatingactivities11,772,488(1,292,713)8,265,568(4,754,748)6,541,3634,744,41318,971,85199,234,532

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

Item2022ContractualundiscountedcashflowCarryingamountatbalancesheetdate
Within1yearorondemand1to2yearsMorethan2yearsbutlessthan5yearsMorethan5yearsTotal
Short-termloans396,981,235---396,981,235389,378,480
Accountspayable503,323,746---503,323,746503,323,746
Otherpayables372,608,689---372,608,689372,608,689
Long-termloans(includingtheportionduewithinoneyear)75,108,08370,927,517115,864,799-261,900,399231,124,009
Long-termpayables(includingtheportionduewithinoneyear)22,546,67422,282,67420,039,452-64,868,80064,000,000
Leaseliability(includingtheportionduewithinoneyear)22,767,66622,126,51733,652,99068,864,863147,412,036128,514,033
Total1,393,336,093115,336,708169,557,24168,864,8631,747,094,9051,688,948,957

Item

Item2021ContractualundiscountedcashflowCarryingamountatbalancesheetdate
Within1yearorondemand1to2yearsMorethan2yearsbutlessthan5yearsMorethan5yearsTotal
Short-termloans630,717,486---630,717,486622,066,457
Accountspayable493,453,816---493,453,816493,453,816
Otherpayables452,642,025---452,642,025452,642,025
Long-termloans(includingtheportionduewithinoneyear)20,586,762125,114,353112,380,67515,506,135273,587,925250,567,080
Long-termpayables(includingtheportionduewithinoneyear)22,810,67422,546,67442,322,126-87,679,47486,000,000
Leaseliability(includingtheportionduewithinoneyear)19,753,55517,690,61539,763,48975,510,332152,717,991116,156,677
Total1,639,964,318165,351,642194,466,29091,016,4672,090,798,7172,020,886,055

3Interestraterisk

Interest-bearingfinancialinstrumentsatvariableratesandatfixedratesexposetheGrouptocashflowinterestrateriskandfairvalueinterestrisk,respectively.TheGroupdeterminestheappropriateweightingsofthefixedandfloatingrateinterest-bearinginstrumentsbasedonthecurrentmarketconditionsandperformsregularreviewsandmonitoringtoachieveanappropriatemixoffixedandfloatingrateexposure.

(1)Asat31December,theGroupheldthefollowinginterest-bearingfinancialinstruments:

Fixedrateinstruments:

Item

Item20222021
EffectiveinterestrateAmountsEffectiveinterestrateAmounts
Financialassets
-Cashatbank2.00%-2.25%53,200,0001.75%-2.25%53,200,000
Financialliabilities??
-Short-termloans0.65%-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:

Item20222021
EffectiveinterestrateAmountsEffectiveinterestrateAmounts
Financialassets
-Cashatbank0.25%-1.61%1,598,206,1610.3%-1.82%1,513,824,507
Financialliabilities??
-Short-termloans1yearLPR0.005(200,000,000)1yearLPR0.005(450,000,000)
-Short-termloans1.81%-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)--
Total1,316,810,291?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

20222021
BalanceatforeigncurrencyBalanceatRMBequivalentBalanceatforeigncurrencyBalanceatRMBequivalent
Cashatbankandonhand
-USD10,92276,0681,984,32312,640,136
-EUR67494106,216766,848
-HKD208186
Short-termloans15,490,00098,759,593
-USD13,750,00095,792,13215,490,00098,759,593

(2)ThefollowingaretheexchangeratesforRenminbiagainstforeigncurrenciesappliedbythe

Group:

AveragerateBalancesheetdatemid-spotrate
2022202120222021
USD6.75736.45126.96466.3757
EUR7.09857.61867.42297.2197
HKD0.85830.83000.89330.8176

(3)Sensitivityanalysis

Assumingallotherriskvariablesremainedconstant,a5%strengtheningoftheRenminbiagainsttheUSdollarandEurodollarat31DecemberwouldhaveimpactontheGroup’sequityandnetprofitbytheamountshownbelow.whoseeffectisinRenminbiandtranslatedusingthespotrateattheyear-enddate:

Equity

EquityNetprofit
31December2022
USD3,589,3523,589,352
EUR(19)(19)
HKD(7)(7)
Total3,589,3263,589,326
31December2021
USD4,305,9734,305,973
EUR(38,342)(38,342)
Total4,267,6314,267,631

A5%weakeningoftheRenminbiagainsttheUSdollarandEurodollarat31Decemberwouldhavehadtheequalbutoppositeeffecttotheamountsshownabove,onthebasisthatallothervariablesremainedconstant.VIII.Fairvaluedisclosure

AllfinancialassetsandfinancialliabilitiesheldbytheGrouparecarriedatamountsnotmateriallydifferentfromtheirfairvalueat31December2022and31December2021.

IX.Relatedpartiesandrelatedpartytransactions1InformationabouttheparentoftheCompany

Companyname

CompanynameRegisteredplaceBusinessnatureRegisteredcapitalShareholdingpercentage(%)Percentageofvotingrights(%)UltimatecontrollingpartyoftheCompany
ChangyuGroupYantaiManufacturing50,000,00050.4%50.4%JointlycontrolledbyYantaiGuoFengInvestmentHoldingLtd,ILLVASARONNOHOLDINGSPA,InternationalFinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited.

Therearenochangesontheregisteredcapitalandshareholdingpercentage/percentageofvotingrightsoftheparentcompany.

2InformationaboutthesubsidiariesoftheCompany

ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVI.1.3Informationonotherrelatedparties

Nameofotherrelatedparties

NameofotherrelatedpartiesRelatedpartyrelationship
YantaiShenmaPackagingCo.,Ltd.(“ShenmaPackaging”)Controlledbythesameparentcompany
YantaiZhongyaPharmaceuticalTonicWineCo.,Ltd.(“ZhongyaPharmaceutical”)Controlledbythesameparentcompany
WEMISSShanghaiAssociateoftheGroup
ChengduYufengAssociateoftheGroup
YantaiGuolongSubsidiariesofthejointventure
MirefleursSubsidiariesofthejointventure
CHATEAUDELIVERSAN(“LIVERSAN”)Subsidiariesofthejointventure

4Transactionswithrelatedparties

(1)Productprocurement

RelatedpartiesNatureoftransaction20222021
ShenmaPackagingProductprocurement82,187,38880,754,599
ZhongyaPharmaceuticalProductprocurement253,410591,522
MirefleursProductprocurement7,054,6646,822,330
LIVERSANProductprocurement2,870,5153,269,146
Total92,365,97791,437,597

(2)Salesofgoods

RelatedpartiesNatureoftransaction20222021
ZhongyaPharmaceuticalSalesofgoods5,384,3623,872,660
WEMISSShanghaiSalesofgoods2,017,0665,365,061
ChengduYufengSalesofgoods614,3022,677,707
ShenmaPackagingSalesofgoods110,048287,930
YantaiGuolongSalesofgoods26,816,648-
Total34,942,42612,203,358

(3)Purchaseoffixedassets

RelatedpartiesoftheCompany

RelatedpartiesoftheCompanyNatureoftransaction20222021
ShenmaPackagingPurchaseoffixedassets4,245,9294,101,232
Total4,245,9294,101,232

(4)Leases

(a)Asthelessor

NameoflesseeTypeofassetsleasedLeaseincomerecognisedin2022Leaseincomerecognisedin2021
ShenmaPackagingOfficesandplants1,549,4101,492,550
ZhongyaPharmaceuticalOfficesandplants590,476522,936
Total2,139,8862,015,486

(b)Asthelessee

NameoflessorTypeofassetsleasedLeaseexpenserecognisedin2022Leaseexpenserecognisedin2021
ChangyuGroupOfficebuildings1,425,7351,612,118
ChangyuGroupOfficesandplants1,275,1441,394,762
ChangyuGroupOfficesandplants3,825,4334,184,286
ChangyuGroupOfficesandcommercialbuilding6,145,4887,057,143
Total1,425,73514,248,309

(5)Remunerationofkeymanagementpersonnel

Item20222021
Remunerationofkeymanagementpersonnel10,265,67412,495,933

(6)Otherrelatedpartytransactions

RelatedpartiesNatureoftransaction20222021
ChangyuGroupRoyalty21,877,17124,763,872

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

ItemRelatedparty20222021
BookvalueProvisionforbadanddoubtfuldebtsBookvalueProvisionforbadanddoubtfuldebts
AccountsreceivableZhongyaPharmaceutical2,627,4738,091287,788956
OthercurrentassetsChangyuGroup120,930,641---
Othernon-currentassetsChangyuGroup--144,120,442-
OtherreceivablesShenmaPackaging--341,880-
AccountsreceivableYantaiGuolongl2,627,4738,091--

Payablestorelatedparties

ItemRelatedparty20222021
AccountspayableZhongyaPharmaceutical36,600,23330,184,072
AccountspayableZhongyaPharmaceutica5,365,862-
AccountspayableChengduYufeng143,659344,464
AccountspayableChangyuGroup19,434,60019,434,600
ContractliabilitiesZhongyaPharmaceutica240653
OtherpayablesShenmaPackaging471,869-

?

X.Capitalmanagement

TheGroup’sprimaryobjectiveswhenmanagingcapitalaretosafeguarditsabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsforshareholders,bypricingproductsandservicescommensuratelywiththelevelofriskandbysecuringaccesstofinanceatareasonablecost.TheGroup’scapitalstructureisregularlyreviewedandmanagedtoachieveanoptimalstructureandreturnforshareholders.FactorsfortheGroup’sconsiderationinclude:itsfuturefundingrequirements,capitalefficiency,actualandexpectedprofitability,expectedcashflows,andexpectedcapitalexpenditure.AdjustmentsaremadetothecapitalstructureinlightofchangesineconomicconditionsaffectingtheGroup.NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.

XI.Commitmentsandcontingencies1Significantcommitment

(1)Capitalcommitments

Item

Item20222021
Long-termassetsacquisitioncommitment45,698,00084,963,700
Total45,698,00084,963,700

(2)Operatingleasecommitments

Asat31December,thetotalfutureminimumleasepaymentsundernon-cancellable

operatingleasesoftheGroup’spropertieswerepayableasfollows:

Item20222021
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

Item20222021
Bankacceptancebills-9,800,000
Total-9,800,000

2Receivablesunderfinancing

ItemNote20222021
Billsreceivable(1)41,061,41762,411,636
Total41,061,41762,411,636

(1)ThepledgedbillsreceivableoftheCompanyattheendoftheyear

Asat31December2022,therewasnopledgedbillsreceivable(31December2021:Nil).

(2)Outstandingderecognisedendorsedbillsthathavenotmaturedattheendoftheyear

ItemAmountrecognisedatyearend
Bankacceptancebills105,149,583
Total105,149,583

Asat31December2022,derecognisedbillsendorsedbytheCompanytootherpartieswhicharenotyetdueattheendoftheperiodisRMB105,149,583(31December2021:

RMB65,893,889).Thenotesareusedforpaymenttosuppliers.TheCompanybelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theCompanywouldundertakelimitedliabilityforthenotes.3Otherreceivables

Note31December202231December2021
Dividendsreceivable(1)250,000,000-

Others

Others(2)470,176,320398,072,976
Total720,176,320398,072,976

(1)Dividendsreceivable

Item31December202231December2021
Dividendstosubsidiaries250,000,000-
Total250,000,000-

(2)Others

(a)Othersbycustomertype:

Customertype31December202231December2021
Amountsduefromsubsidiaries470,128,362397,998,281
Amountsduefromrelatedparties47,95874,695
Sub-total470,176,320-398,072,976
Less:Provisionforbadanddoubtfuldebts--
Total470,128,362398,072,976

(b)Theageinganalysisisasfollows:

Ageing20222021
Within1year(inclusive)470,071,848397,936,651
Over1yearbutwithin2years(inclusive)-11,853
Over2yearsbutwithin3years(inclusive)104,472104,472
Over3years-20,000
Sub-total470,176,320398,072,976
Less:Provisionforbadanddoubtfuldebts--
Total470,176,320398,072,976

Theageingiscountedstartingfromthedate.(c)Movementsofprovisionsforbadanddoubtfuldebts

Asat31December2022,nobadanddoubtfuldebtprovisionwasmadeforother

receivables(31December2021:Nil).

Asat31December2022,theCompanyhasnootherreceivableswrittenoff(31

December2021:Nil).

(d)Otherscategorisedbynature

Natureofotherreceivables

Natureofotherreceivables20222021
Amountsduefromsubsidiaries470,128,362397,998,281
Others47,95874,695
Sub-total470,176,320398,072,976
Less:Provisionforbadanddoubtfuldebts--
Total470,128,362398,072,976

(e)Fivelargestothers-bydebtorattheendoftheyear

DebtorNatureofthereceivableBalanceattheendoftheyearAgeingPercentageofendingbalanceofothers(%)Endingbalanceofprovisionforbadanddoubtfuldebts
SalesCompanyAmountsduefromsubsidiaries192,349,897Within1year40.9-
R&DCentreAmountsduefromsubsidiaries16,085,524Within1year3.4-
DigitalMarketingAmountsduefromsubsidiaries12,513,258Within1year2.7-
ChateauKOYAAmountsduefromsubsidiaries9,455,430Within1year2.0-
ChateauChangyuAmountsduefromsubsidiaries7,040,550Within1year1.5-
Total237,444,65950.5-

4Long-termequityinvestments

(1)Long-termequityinvestmentsbycategory:

Item20222021
BookvalueProvisionforimpairmentCarryingamountBookvalueProvisionforimpairmentCarryingamount
Investmentsinsubsidiaries7,703,535,027-7,703,535,0277,593,535,027-7,593,535,027
Investmentsinassociates2,318,351-2,318,3515,886,467-5,886,467
Total7,705,853,378-7,705,853,3787,599,421,494-7,599,421,494

(2)Investmentsinsubsidiaries:

Subsidiary

SubsidiaryBalanceatthebeginningoftheyearAdditionsduringtheyearDecreaseduringtheyearBalanceattheendoftheyear
XinjiangTianzhu60,000,000--60,000,000
KylinPackaging23,176,063--23,176,063
ChateauChangyu28,968,100--28,968,100
PioneerInternational3,500,000--3,500,000
NingxiaGrowing36,573,247--36,573,247
NationalWines2,000,000--2,000,000
GoldenIcewineValley30,440,500--30,440,500
ChateauBeijing588,389,444--588,389,444
SalesCompany7,200,000--7,200,000
LangfangSales100,000--100,000
LangfangCastel19,835,730--19,835,730
WineSales4,500,000--4,500,000
ShanghaiMarketing1,000,000--1,000,000
BeijingSales850,000--850,000
JingyangSales100,000--100,000
JingyangWine900,000--900,000
NingxiaWine222,309,388--222,309,388
ChateauNingxia453,463,500--453,463,500
ChateauTinlot212,039,586--212,039,586
ChateauShihezi812,019,770--812,019,770
ChateauChangan803,892,258--803,892,258
R&DCentre3,288,906,445--3,288,906,445
HuanrenWine22,200,000--22,200,000
WineSalesCompany5,000,000--5,000,000
FrancsChamps236,025,404--236,025,404
Dicot233,142,269--233,142,269
ChileIndomitaWineGroup274,248,114--274,248,114
AustraliaKilikanoonEstate129,275,639--129,275,639
DigitalMarketing1,000,000--1,000,000
CultureDevelopment92,479,570--92,479,570
ChateauKoya-110,000,000-110,000,000
Total7,593,535,027110,000,000-7,703,535,027

ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVI.

(3)Investmentsinassociates:

SubsidiaryBalanceatthebeginningoftheyearAdditionsduringtheyearDecreaseduringtheyearInvestmentlossesrecognizedundertheequitymethodBalanceattheendoftheyear
WEMISSShanghai2,366,811--(48,460)2,318,351
YantaiSantaiRealEstateDevelopmentCo.,Ltd3,519,656-(3,519,656)--
Total5,886,467-(3,519,656)(48,460)2,318,351

5Operatingincomeandoperatingcosts

Item

Item20222021
IncomeCostIncomeCost
Principalactivities672,635,481575,896,372576,706,055470,719,232
Otheroperatingactivities2,426,9401,420,4792,189,7471,439,506
Total675,062,421577,316,851578,895,802472,158,738
Including:Revenuefromcontractswithcustomers672,635,481575,896,372576,706,055470,719,232
Rentincome2,426,9401,420,4792,189,7471,439,506

(1)Disaggregationofrevenuefromcontractswithcustomers:

Typeofcontract20222021
Bytypeofgoodsorservices
-Liquor672,635,481576,706,055
Bytimingoftransferringgoodsorservices
-Revenuerecognisedatapointintime672,635,481576,706,055

6Investmentincome

Item20222021
Incomefromlong-termequityinvestmentsaccountedforusingcostmethod738,407,264867,880,564
Lossfromlong-termequityinvestmentsaccountedforusingequitymethod(48,460)(357,386)
Lossfromlong-termequityinvestmentsaccountedfordisposaloflong-termequityinvestment(1,842,325)-
Total736,516,479867,523,178

7Transactionswithrelatedparties

(1)Productprocurement

RelatedpartiesNatureoftransaction20222021
SubsidiaryoftheparentcompanyProductprocurement154,806,785117,808,977
OtherrelatedpartiesoftheCompanyProductprocurement42,578,23530,002,566
Total197,385,020147,811,543

(2)Salesofgoods

RelatedpartiesNatureoftransaction20222021
SubsidiaryoftheparentcompanySalesofgoods504,080,073576,708,399
OtherrelatedpartiesoftheCompanySalesofgoods2,952,4933,017,548
Total507,032,566579,725,947

(3)Guarantee

TheCompanyastheguarantor

Guaranteeholder

GuaranteeholderCurrencyAmountofguaranteeInceptiondateofguaranteeMaturitydateofguaranteeGuaranteeexpired(Y/N)
R&DCentreRMB500,000,00008March201708March2022Y
AustraliaKilikanoonEstateAUD17,550,00013December201813December2023N

(4)Leases

(a)Asthelessor

NameoflesseeTypeofassetsleasedLeaseincomerecognisedin2022Leaseincomerecognisedin2021
OtherrelatedpartiesoftheCompanyOfficesandplants2,139,8862,015,486
SubsidiaryoftheparentcompanyOfficesbuildings85,71485,714
Total2,225,6002,101,200

(b)Asthelessee

NameoflessorTypeofassetsleasedLeaseexpenserecognisedin2022Leaseexpenserecognisedin2021
OtherrelatedpartiesoftheCompanyOfficebuildings1,275,1441,394,762
TotalOfficebuildings1,275,1441,394,762

8Receivablesfromandpayablestorelatedparties

Receivablesfromrelatedparties

ItemRelatedparty20222021
BookvalueProvisionforbadanddoubtfuldebtsBookvalueProvisionforbadanddoubtfuldebts
AccountsreceivablesOtherrelatedpartiesoftheCompany2,301,5057,805--
OtherreceivablesSubsidiaryoftheparentcompany720,128,362-397,998,281-
Othernon-currentassetsSubsidiaryoftheparentcompany1,850,200,000-2,023,500,000-

Payablestorelatedparties

ItemRelatedparty20222021
AccountspayableOtherrelatedpartiesoftheCompany35,944,14928,014,000
OtherpayablesSubsidiaryoftheparentcompany421,781,524362,651,747
OtherpayablesOtherrelatedpartiesoftheCompany471,869-

XV.Non-recurringprofitandlossstatementin2022

Item

ItemAmount
(1)Profitandlossfromdisposalofnon-currentassets(18,902,024)
(2)Governmentgrantsrecognisedthroughprofitorloss(excludingthosehavingcloserelationshipswiththeGroup’soperationandenjoyedinfixedamountorquantityaccordingtouniformnationalstandard)33,145,440
(3)Othernon-operatingincomeandexpensesbesidesitemsabove4,750,614
Sub-total18,994,030
(4)Taxeffect(4,695,173)
(5)Effectonnon-controllinginterestsaftertaxation551,195
Total14,850,052

Note1:Extraordinarygainandlossitems(1)to(3)listedabovearepresentedintheamount

beforetaxation.XVI.Returnonnetassetsandearningspershare

1Calculationofearningspershare

(1)Basicearningspershare

Forcalculationofthebasicearningspershare,pleaserefertoNoteV.49.

(2)Basicearningspershareexcludingextraordinarygainandloss

BasicearningspershareexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:

20222021
ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany428,681,411500,102,606
ExtraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany14,850,05227,866,644
ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders413,831,359472,235,962
Weightedaveragenumberofordinarysharesoutstanding685,464,000685,464,000
Basicearningspershareexcludingextraordinarygainandloss(RMB/share)0.600.69

(3)Dilutedearningspershare

Duringthereportingperiod,theCompanydidnothavedilutivepotentialordinaryshares.

2Calculationofweightedaveragereturnonnetassets

(1)Weightedaveragereturnonnetassets

WeightedaveragereturnonnetassetsiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:

2022

20222021
ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany428,681,411500,102,606
Weightedaverageamountofconsolidatednetassets10,487,764,05810,329,718,533
Weightedaveragereturnonnetassets4.09%4.84%

Calculationofweightedaverageamountofconsolidatednetassetsisasfollows:

20222021
Consolidatednetassetsatthebeginningoftheyear10,447,884,18310,267,832,644
Impactofchangesinaccountingpolicies-(10,582,161)
EffectofconsolidatednetprofitattributabletoordinaryshareholdersoftheCompany219,814,175232,409,650
Effectofsharesrepurchased(NoteV.36)(179,934,300)(159,941,600)
Weightedaverageamountofconsolidatednetassets10,487,764,05810,329,718,533

(2)Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss

WeightedaveragereturnonnetassetsexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:

20222021
ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders413,831,359472,235,962
Weightedaverageamountofconsolidatednetassets(Note)10,487,764,05810,329,718,533
Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss3.95%4.57%

YantaiChangyuPioneerWineCo.,Ltd.

BoardofDirectorsApril13,2023


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