Financial Report
1. Audit report
Whether the semiannual report has been audited
□ Yes √ No
2. Financial statement
The unit in the statements of the financial annotations is RMB Yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2019 Unit: Yuan
Item | Note | June 30, 2019 | December 31, 2018 |
Current assets: | |||
Monetary fund | 7.1 | 1,848,632,953 | 1,475,700,477 |
Settlement reserves | |||
Lending funds | |||
Tradable financial assets | |||
Financial assets measured at the fair value and the variation of which is recorded into the current profits and losses | |||
Derivative financial assets | |||
Bills receivable | 7.2 | 288,667,988 | |
Accounts receivable | 7.3 | 186,131,192 | 242,153,083 |
Receivables financing | 7.4 | 372,281,872 | |
Advance payment | 7.5 | 3,490,928 | 4,219,949 |
Premium receivable | |||
Reinsurance accounts receivable | |||
Receivable reserves for reinsurance contract | |||
Other receivables | 7.6 | 28,618,983 | 22,636,086 |
Including: Interest receivable | 2,099,109 | 1,332,681 | |
Dividends receivable | |||
Redemptory monetary capital for sale | |||
Inventories | 7.7 | 2,606,781,436 | 2,724,591,457 |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | 7.8 | 300,418,901 | 258,676,396 |
Total current assets | 5,346,356,265 | 5,016,645,436 | |
Non-current assets: | |||
Offering loans and imprest | |||
Debt investments | |||
Available-for-sale financial assets | 467,251 | ||
Other debt investments |
Item | Note | June 30, 2019 | December 31, 2018 |
Held-to-maturity investments | |||
Long-term receivables | |||
Long-term equity investments | |||
Other investments in equity instruments | |||
Other non-current financial assets | 7.9 | 515,922 | |
Investment real estate | 7. 10 | 30,560,470 | 31,572,489 |
Fixed assets | 7.11 | 5,684,612,653 | 5,749,731,667 |
Construction in progress | 7.12 | 789,872,373 | 759,296,591 |
Productive biological assets | 7.13 | 207,613,439 | 209,266,373 |
Oil-and-gas assets | |||
Right-of-use assets | |||
Intangible assets | 7.14 | 647,158,886 | 655,473,459 |
Development expenditure | |||
Goodwill | 7.15 | 165,199,111 | 165,199,111 |
Long-term prepaid expenses | 7.16 | 276,557,711 | 244,640,416 |
Deferred income tax assets | 7.17 | 234,646,603 | 285,436,259 |
Other non-current assets | |||
Total non-current assets | 8,036,737,168 | 8,101,083,616 | |
Total assets | 13,383,093,433 | 13,117,729,052 | |
Current liabilities: | |||
Short-term loans | 7.18 | 678,170,667 | 688,002,410 |
Borrowings from the Central Bank | |||
Loans from other banks and other financial institutions | |||
Tradable financial liabilities | |||
Financial liabilities measured at the fair value and the variation of which is recorded into the current profits and losses | |||
Derivative financial liabilities | |||
Bills payable | |||
Accounts payable | 7.19 | 539,459,878 | 713,572,881 |
Advances from customers | 7.20 | 177,549,080 | 226,075,244 |
Financial assets sold for repurchase | |||
Deposits from customers and interbank | |||
Receivings from vicariously traded securities | |||
Receivings from vicariously sold securities | |||
Employee remunerations payable | 7.21 | 177,466,368 | 212,304,217 |
Taxes and dues payable | 7.22 | 109,000,802 | 128,912,790 |
Other payables | 7.23 | 977,667,007 | 608,479,890 |
Including: Interest payable | 2,669,667 | 712,826 | |
Dividends payable | 412,646,375 | ||
Handling charges and commissions payable | |||
Dividend payable for reinsurance | |||
Contract liabilities | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | 7.24 | 180,362,314 | 152,940,788 |
Other current liabilities | 7.25 | 14,545,254 | 15,860,254 |
Item | Note | June 30, 2019 | December 31, 2018 |
Total current liabilities | 2,854,221,370 | 2,746,148,474 | |
Non-current liabilities: | |||
Reserves for insurance contracts | |||
Long-term borrowings | 7.26 | 165,949,250 | 156,480,662 |
Bonds payable | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term accounts payable | 7.27 | 201,000,000 | 225,000,000 |
Long-term employee remunerations payable | |||
Estimated liabilities | |||
Deferred income | 7.28 | 64,050,895 | 70,367,039 |
Deferred income tax liabilities | 7.17 | 18,629,612 | 22,010,647 |
Other non-current liabilities | 7.29 | 7,159,222 | 7,234,853 |
Total non-current liabilities | 456,788,979 | 481,093,201 | |
Total liabilities | 3,311,010,349 | 3,227,241,675 | |
Owner’s equity: | |||
Capital stock | 7.30 | 685,464,000 | 685,464,000 |
Other equity instruments | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Capital surplus | 7.31 | 565,955,441 | 565,955,441 |
Minus: Treasury stock | |||
Other comprehensive income | 7.32 | -95,344 | 2,965,377 |
Special reserves | |||
Surplus reserves | 7.33 | 342,732,000 | 342,732,000 |
General risk preparation | |||
Undistributed profit | 7.34 | 8,197,828,994 | 8,008,982,547 |
Total owner’s equities attributable to the parent company | 9,791,885,091 | 9,606,099,365 | |
Minority equity | 280,197,993 | 284,388,012 | |
Total owner’s equities | 10,072,083,084 | 9,890,487,377 | |
Total liabilities and owner’s equities | 13,383,093,433 | 13,117,729,052 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: JiangJianxun
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Note | June 30, 2019 | December 31, 2018 |
Current assets: | |||
Monetary fund | 1,083,333,310 | 624,588,809 | |
Tradable financial assets | |||
Financial assets measured at the fair value and the variation of which is recorded into the current profits and losses | |||
Derivative financial assets |
Item | Note | June 30, 2019 | December 31, 2018 |
Bills receivable | 39,885,254 | ||
Accounts receivable | 15.1 | 1,447,973 | |
Receivables financing | 56,047,969 | ||
Advance payment | 427,816 | 227 | |
Other receivables | 15.2 | 526,593,613 | 1,025,643,356 |
Including: Interest receivable | 277,785 | 254,088 | |
Dividends receivable | 4,103,925 | 500,000,000 | |
Inventories | 505,479,473 | 385,154,740 | |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | 35,992,255 | 24,704,844 | |
Total current assets | 2,207,874,436 | 2,101,425,203 | |
Non-current assets: | |||
Debt investments | |||
Available-for-sale financial assets | |||
Other debt investments | |||
Held-to-maturity investments | |||
Long-term receivables | |||
Long-term equity investments | 15.3 | 7,420,803,069 | 7,420,803,069 |
Other investments in equity instruments | |||
Other non-current financial assets | |||
Investment real estate | 30,560,470 | 31,572,489 | |
Fixed assets | 260,448,515 | 265,311,274 | |
Construction in progress | 7,319,082 | 6,311,701 | |
Productive biological assets | 121,158,460 | 125,002,793 | |
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | 66,054,490 | 67,244,066 | |
Development expenditure | |||
Goodwill | |||
Long-term prepaid expenses | |||
Deferred income tax assets | 20,699,273 | 24,194,967 | |
Other non-current assets | 985,700,000 | 972,700,000 | |
Total non-current assets | 8,912,743,359 | 8,913,140,359 | |
Total assets | 11,120,617,795 | 11,014,565,562 | |
Current liabilities: | |||
Short-term loans | 150,000,000 | 150,000,000 | |
Tradable financial liabilities | |||
Financial liabilities measured at the fair value and the variation of which is recorded into the current profits and losses | |||
Derivative financial liabilities | |||
Bills payable | |||
Accounts payable | 106,793,658 | 132,704,304 | |
Advances from customers | |||
Contract liabilities |
Item | Note | June 30, 2019 | December 31, 2018 |
Employee remunerations | 59,598,048 | 72,345,179 | |
Taxes and dues payable | 3,749,762 | 13,111,431 | |
Other payables | 913,805,782 | 607,974,519 | |
Including: Interest payable | 163,125 | 181,250 | |
Dividends payable | 411,278,400 | ||
Liabilities held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | 3,433,054 | 3,433,054 | |
Total current liabilities | 1,237,380,304 | 979,568,487 | |
Non-current liabilities: | |||
Long-term borrowings | |||
Bonds payable | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term accounts payable | |||
Long-term employee remuneration payable | |||
Estimated liabilities | |||
Deferred income | 7,459,789 | 8,910,918 | |
Deferred income tax liabilities | |||
Other non-current liabilities | 2,951,042 | 2,710,575 | |
Total non-current liabilities | 10,410,831 | 11,621,493 | |
Total liabilities | 1,247,791,135 | 991,189,980 | |
Owner’s equity: | |||
Capital stock | 685,464,000 | 685,464,000 | |
Other equity instruments | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Capital surplus | 557,222,454 | 557,222,454 | |
Minus: Treasury stock | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserves | 342,732,000 | 342,732,000 | |
Undistributed profit | 8,287,408,206 | 8,437,957,128 | |
Total owner’s equities | 9,872,826,660 | 10,023,375,582 | |
Total liabilities and owner’s equities | 11,120,617,795 | 11,014,565,562 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager:
Jiang Jianxun
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Note | Sum of current period | Sum of prior period |
1. Total operating income | 2,558,274,785 | 2,828,230,064 | |
Including: Operating income | 7.35 | 2,558,274,785 | 2,828,230,064 |
Interest income | |||
Earned premium | |||
Handling fee and commission income | |||
2. Total operating costs | 1,818,822,580 | 2,023,670,406 | |
Including: Operating costs | 7.35 | 936,252,225 | 974,557,292 |
Interest expenditure | |||
Handling fees and commission expenditure | |||
Premium rebate | |||
Net amount of indemnity expenditure | |||
Net amount of the withdrawn reserve fund for insurance contract | |||
Policy bonus payment | |||
Amortized reinsurance expenditures | |||
Taxes and surcharges | 7.36 | 123,550,848 | 165,276,251 |
Selling expenses | 7.37 | 591,970,801 | 710,659,033 |
Administrative expenses | 7.38 | 155,552,312 | 157,964,882 |
Research and development expenses | 7.39 | 2,706,811 | 2,127,006 |
Financial expenses | 7.40 | 8,789,583 | 13,085,942 |
Including: Interest expenses | 9,812,560 | 18,739,528 | |
Interest income | 4,606,417 | 7,245,870 | |
Plus: Other profit | 7.41 | 64,211,892 | 37,982,878 |
Investment profit (loss is listed with "-") | |||
Including: Investment profit for joint-run business and joint venture | |||
Financial assets measured at amortized cost cease to be recognized as income (loss is listed with "-") | |||
Exchange income (loss is listed with "-") | |||
Net exposure hedge income (loss is listed with "-") | |||
Income from fair value changes (loss is listed with "-") | |||
Credit impairment loss (loss is listed with "-") | 7.42 | -765,935 | |
Asset impairment loss (loss is listed with "-") | 7.43 | 6,148,729 | 4,730,948 |
Income from asset disposal (loss is listed with "-") | 7.44 | 1,138 | 93,958 |
3. Operating profit (loss is listed with "-") | 809,048,029 | 847,367,442 | |
Plus: Non-operating income | 7.45 | 3,575,914 | 2,006,392 |
Minus: Non-operating expenses | 7.46 | 164,050 | 1,392,362 |
4. Total profits (total loss is listed with "-") | 812,459,893 | 847,981,472 | |
Minus: Income tax expenses | 7.47 | 210,281,578 | 211,979,735 |
5. Net profit (net loss is listed with "-") | 602,178,315 | 636,001,737 | |
5.1 Classification by operation continuity | |||
5.1.1 Net profit from continuing operation (net loss is listed with "-") | 602,178,315 | 636,001,737 | |
5.1.2 Net profit from terminating operation (net loss is listed with "-") | |||
5.2 Classification by ownership | |||
5.2.1 Net profit attributable to owner of the parent company | 603,403,789 | 635,837,405 | |
5.2.2 Minority interest income | -1,225,474 | 164,332 | |
6. Net after-tax amount of other comprehensive income | 7.48 | -4,657,291 | -11,126,413 |
Net after-tax amount of other comprehensive income attributable to | -3,060,721 | -9,230,820 |
owner of the parent company | |||
6.1 Other comprehensive income not to be reclassified into profit and loss later | |||
6.1.1 Changes after remeasuring and resetting the benefit plans | |||
6.1.2 Other comprehensive income not to be reclassified into profit and loss under equity law | |||
6.1.3 Changes in the fair value of other investments in equity instruments | |||
6.1.4 Changes in the fair value of the enterprise's own credit risk | |||
6.1.5 Other | |||
6.2 Other comprehensive income to be reclassified into profit and loss later | -3,060,721 | -9,230,820 | |
6.2.1 Other comprehensive income to be reclassified into profit and loss under equity law | |||
6.2.2 Changes in the fair value of other debt investments | |||
6.2.3 Profit and loss from changes in the fair value of financial assets for sale | |||
6.2.4 Amount of financial assets reclassified into other comprehensive income | |||
6.2.5 Profit and loss from reclassification of held-to-maturity investments into financial assets for sale | |||
6.2.6 Provision for credit impairment of other credit investments | |||
6.2.7 Provision for cash-flow hedge | |||
6.2.8 Difference in translation of Foreign Currency Financial Statement | -3,060,721 | -9,230,820 | |
6.2.9 Other | |||
Net after-tax amount of other comprehensive income attributable to minority shareholders | -1,596,570 | -1,895,593 | |
7. Total comprehensive income | 597,521,024 | 624,875,324 | |
Attributable to owner of the parent company | 600,343,068 | 626,606,585 | |
Attributable to minority shareholders | -2,822,044 | -1,731,261 | |
8. Earnings per share: | |||
8.1 Basic earnings per share | 0.88 | 0.93 | |
8.2 Diluted earnings per share | 0.88 | 0.93 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager:
Jiang Jianxun
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Note | Sum of current period | Sum of prior period |
1. Operating income | 15.4 | 352,351,002 | 408,845,211 |
Minus: Operating costs | 15.4 | 309,570,580 | 352,646,989 |
Taxes and surcharges | 13,140,156 | 24,463,375 | |
Selling expenses | |||
Administrative expenses | 39,434,246 | 39,827,281 | |
Research and development expenses | 405,061 | 360,466 | |
Financial expenses | -3,657,370 | -15,151,608 | |
Including: Interest expenses | -2,705,073 | 11,357,611 | |
Interest income | 1,470,667 | 29,630,717 |
Plus: Other profit | 1,716,527 | 1,976,527 | |
Investment profit (loss is listed with "-") | 15.5 | 264,221,755 | 312,409,576 |
Including: Investment profit for joint-run business and joint venture | |||
Financial assets measured at amortized cost cease to be recognized as income (loss is listed with "-") | |||
Net exposure hedge income (loss is listed with "-") | |||
Income from fair value changes (loss is listed with "-") | |||
Credit impairment loss (loss is listed with "-") | |||
Asset impairment loss (loss is listed with "-") | |||
Income from asset disposal (loss is listed with "-") | 75,000 | ||
2. Operating profit (loss is listed with "-") | 259,396,611 | 321,159,811 | |
Plus: Non-operating income | 703,559 | 56,479 | |
Minus: Non-operating expenses | 97,638 | 528 | |
3. Total profits (total loss is listed with "-") | 260,002,532 | 321,215,762 | |
Minus: Income tax expenses | -726,946 | 2,450,592 | |
4. Net profit (net loss is listed with "-") | 260,729,478 | 318,765,170 | |
4.1Net profit from continuing operation (net loss is listed with "-") | 260,729,478 | 318,765,170 | |
4.2 Net profit from terminating operation (net loss is listed with "-") | |||
5. Net after-tax amount of other comprehensive income | |||
5.1 Other comprehensive income not to be reclassified into profit and loss later | |||
5.1.1 Changes after remeasuring and resetting the benefit plans | |||
5.1.2 Other comprehensive income not to be reclassified into profit and loss under equity law | |||
5.1.3 Changes in the fair value of other investments in equity instruments | |||
5.1.4 Changes in the fair value of the enterprise's own credit risk | |||
5.1.5 Other | |||
5.2 Other comprehensive income to be reclassified into profit and loss later | |||
5.2.1 Other comprehensive income to be reclassified into profit and loss under equity law | |||
5.2.2 Changes in the fair value of other debt investments | |||
5.2.3 Profit and loss from changes in the fair value of financial assets for sale | |||
5.2.4 Amount of financial assets reclassified into other comprehensive income | |||
5.2.5 Profit and loss from reclassification of held-to-maturity investments into financial assets for sale | |||
5.2.6 Provision for credit impairment of other credit investments | |||
5.2.7 Provision for cash-flow hedge | |||
5.2.8 Difference in translation of Foreign Currency Financial Statement | |||
5.2.9 Other | |||
6. Total comprehensive income | 260,729,478 | 318,765,170 | |
7. Earnings per share: | |||
7.1 Basic earnings per share | 0.38 | 0.47 |
7.2 Diluted earnings per share | 0.38 | 0.47 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager:
Jiang Jianxun
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Note | Sum of current period | Sum of prior period |
1. Cash flows from operating activities: | |||
Cash received from sales of goods and rending of services | 2,399,548,448 | 2,680,388,050 | |
Net increase in customer and interbank deposits | |||
Net increase in borrowings from central bank | |||
Net increase in borrowings from other financial institutions | |||
Cash received from receiving insurance premium of original insurance contract | |||
Net cash received from reinsurance business | |||
Net increase in policy holder deposits and investment funds | |||
Cash received from collecting interest, handling fees and commissions | |||
Net increase in borrowing funds | |||
Net increase in repurchasement business funds | |||
Net cash received for buying and selling securities | |||
Tax refund received | 20,038,271 | 26,089,608 | |
Other cash received related to operating activities | 7.49 | 67,785,620 | 42,343,021 |
Subtotal of cash flows of operating activities | 2,487,372,339 | 2,748,820,679 | |
Cash paid for goods and services | 718,093,432 | 677,552,938 | |
Net increase in customer loans and advances | |||
Net increase in deposits in central bank and interbank deposits | |||
Cash paid to original insurance contract payments | |||
Net increase in financial assets held for trading purposes | |||
Net increase in lending funds | |||
Cash paid to interest, handling fees and commissions | |||
Cash paid to policy bonus | |||
Cash paid to and on behalf of employees | 278,638,333 | 278,814,385 | |
Cash paid for taxes and expenses | 598,384,101 | 802,722,798 | |
Other cash paid related to operating activities | 7.49 | 392,780,467 | 436,977,086 |
Sub-total of cash outflows of operating activities | 1,987,896,333 | 2,196,067,207 | |
Net cash flow from operating activities | 499,476,006 | 552,753,472 | |
2. Cash flow from investing activities: | |||
Cash received from disinvestment | |||
Cash received from withdrawal of fixed deposits | 104,597,650 | 305,000,000 | |
Cash received from obtaining investment income | |||
Cash received from obtaining interest income | 1,004,552 | 2,342,015 | |
Cash received from disposal of fixed assets, intangible assets and other long-term assets | 175,837 | 471,130 |
Item | Note | Sum of current period | Sum of prior period |
Net cash received from disposal of branch and other business unit | |||
Other cash received related to investing activities | |||
Subtotal of cash flows of investment activities | 105,778,039 | 307,813,145 | |
Cash paid to acquire fixed assets, intangible assets and other long-term assets | 135,073,897 | 154,464,274 | |
Cash for investment | |||
Cash paid for purchasing fixed deposits | 85,238,750 | 340,000,000 | |
Net increase in hypothecated loan | |||
Net cash paid for acquiring branch and other business unit | 104,566,419 | ||
Other cash paid related to investment activities | |||
Subtotal of cash outflows of investment activities | 220,312,647 | 599,030,693 | |
Net cash flow from investing activities | -114,534,608 | -291,217,548 | |
3. Cash flow from financing activities | |||
Cash received from acquiring investment | |||
Including: cash received from acquiring minority shareholders investment by branch | |||
Cash received from acquiring loans | 656,495,139 | 669,905,706 | |
Cash received from issuing bonds | |||
Other cash received related to financing activities | 7.49 | 23,521,431 | |
Subtotal cash flows of financing activities | 656,495,139 | 693,427,137 | |
Cash paid for paying debts | 658,033,492 | 658,512,141 | |
Cash paid for distributing dividend and profit or paying interest | 16,590,004 | 21,265,533 | |
Including: dividend and profit paid to minority shareholders by branch | |||
Other cash paid related to financing activities | 7.49 | 20,000,000 | |
Subtotal of cash outflows of financing activities | 674,623,496 | 699,777,674 | |
Net cash flow from financing activities | -18,128,357 | -6,350,537 | |
4. Influences of exchange rate fluctuation on cash and cash equivalents | 53,702 | -7,404,199 | |
5. Net Increase in cash and cash equivalents | 366,866,743 | 247,781,188 | |
Plus: balance at the beginning of the period of cash and cash equivalents | 1,206,860,334 | 1,180,889,274 | |
6. Balance at the end of the period of cash and cash equivalents | 1,573,727,077 | 1,428,670,462 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager:
Jiang Jianxun
2.6 Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Sum of current period | Sum of prior period |
1. Cash flows from operating activities: | ||
Cash received from sales of goods and rending of services | 219,405,421 | 275,862,358 |
Tax refund received | ||
Other cash received related to operating activities | 57,674,830 | 100,163,394 |
Item | Sum of current period | Sum of prior period |
Subtotal of cash flows of operating activities | 277,080,251 | 376,025,752 |
Cash paid for goods and services | 163,184,301 | 200,935,534 |
Cash paid to and on behalf of employees | 45,116,586 | 43,647,320 |
Cash paid for taxes and expenses | 22,530,113 | 43,132,327 |
Other cash paid related to operating activities | 321,847,893 | 19,942,485 |
Sub-total of cash outflows of operating activities | 552,678,893 | 307,657,666 |
Net cash flow from operating activities | -275,598,642 | 68,368,086 |
2. Cash flow from investing activities: | ||
Cash received from disinvestment | ||
Cash received from withdrawal of fixed deposits | 40,000,000 | 305,000,000 |
Cash received from obtaining investment income | 760,152,668 | 717,667,435 |
Cash received from obtaining interest income | 484,857 | 2,342,015 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 7,519 | 538,055 |
Net cash received from disposal of branch and other business unit | ||
Other cash received related to investing activities | ||
Subtotal of cash flows of investment activities | 800,645,044 | 1,025,547,505 |
Cash paid to acquiring fixed assets, intangible assets and other long-term assets | 10,164,233 | 11,968,401 |
Cash for investment | 13,000,000 | 105,926,184 |
Cash paid for purchasing fixed deposits | 85,238,750 | 340,000,000 |
Net cash paid for acquiring branch and other business unit | ||
Other cash paid related to investment activities | ||
Subtotal of cash outflows of investment activities | 108,402,983 | 457,894,585 |
Net cash flow from investing activities | 692,242,061 | 567,652,920 |
3. Cash flow from financing activities | ||
Cash received from acquiring investment | ||
Cash received from acquiring loans | 200,000,000 | |
Cash received from issuing bonds | ||
Other cash received related to financing activities | ||
Subtotal cash flows of financing activities | 200,000,000 | |
Cash paid for debts | 600,000,000 | |
Cash paid to distribute dividend, profit or pay interest | 3,248,000 | 11,660,417 |
Other cash paid related to financing activities | ||
Subtotal of cash outflows of financing activities | 3,248,000 | 611,660,417 |
Net cash flow from financing activities | -3,248,000 | -411,660,417 |
4. Influences of exchange rate fluctuation on cash and cash equivalents | ||
5. Net Increase in cash and cash equivalents | 413,395,419 | 224,360,589 |
Plus: balance at the beginning of the period of cash and cash equivalents | 532,384,882 | 493,568,866 |
6. Balance at the end of the period of cash and cash equivalents | 945,780,301 | 717,929,455 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager:
Jiang Jianxun
2.7 Consolidated owner’s equity changing list
Unit: Yuan
Item | This period | ||||||||||||||
Owners’ equity of the parent company | Minority shareholders’ equity | Total owners’ equity | |||||||||||||
Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk preparation | Undistributed profits | Other | Subtotal | |||||
Preferred stock | Perpetual bonds | Other | |||||||||||||
1. Balance at the end of last year | 685,464,000 | 565,955,441 | 2,965,377 | 342,732,000 | 8,008,982,547 | 9,606,099,365 | 284,388,012 | 9,890,487,377 | |||||||
Plus: Accounting policies changing | -3,278,942 | -3,278,942 | -3,278,942 | ||||||||||||
Previous error correction | |||||||||||||||
Business combination under common control | |||||||||||||||
Other | |||||||||||||||
2. Balance at the beginning of this year | 685,464,000 | 565,955,441 | 2,965,377 | 342,732,000 | 8,005,703,605 | 9,602,820,423 | 284,388,012 | 9,887,208,435 | |||||||
3. Increased or decreased amount in this period (reducing amount is listed with "-") | -3,060,721 | 192,125,389 | 189,064,668 | -4,190,019 | 184,874,649 | ||||||||||
3.1 Total comprehensive income | -3,060,721 | 603,403,789 | 600,343,068 | -2,822,044 | 597,521,024 | ||||||||||
3.2 Owners' invested and reduced capital | |||||||||||||||
3.2.1 Owner’ invested common stock | |||||||||||||||
3.2.2 Other equity instrument holders’ invested capital | |||||||||||||||
3.2.3 Amount of shares paid and reckoned in |
owners' equity | |||||||||||||||
3.2.4 Other | |||||||||||||||
3.3 Profit distribution | -411,278,400 | -411,278,400 | -1,367,975 | -412,646,375 | |||||||||||
3.3.1 Accrued surplus reserves | |||||||||||||||
3.3.2 Accrued general risk preparation | |||||||||||||||
3.3.3 Distribution to owners (or shareholders) | -411,278,400 | -411,278,400 | -1,367,975 | -412,646,375 | |||||||||||
3.3.4 Other | |||||||||||||||
3.4 Internal transfer of owners' equity | |||||||||||||||
3.4.1 Capital reserves transferred and increased capital (or capital stock) | |||||||||||||||
3.4.2 Surplus reserves transferred and increased capital (or capital stock) | |||||||||||||||
3.4.3 Surplus reserves covering deficit | |||||||||||||||
3.4.4 Retained earnings carried over from the benefit plan amount | |||||||||||||||
3.4.5 Retained earnings carried over from other comprehensive income | |||||||||||||||
3.4.6 Other | |||||||||||||||
3.5 Special reserves | |||||||||||||||
3.5.1 Withdrawal in this period | |||||||||||||||
3.5.2 Usage in this period | |||||||||||||||
3.6 Other | |||||||||||||||
4. Balance at the end of this period | 685,464,000 | 565,955,441 | -95,344 | 342,732,000 | 8,197,828,994 | 9,791,885,091 | 280,197,993 | 10,072,083,084 |
Item | Last period | ||||||||||||||
Owners’ equity of the parent company | Minority shareholders’ equity | Total owners’ equity | |||||||||||||
Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk preparation | Undistributed profits | Other | Subtotal | |||||
Preferred stock | Perpetual bonds | Other | |||||||||||||
1. Balance at the end of last year | 685,464,000 | 565,955,441 | 3,109,240 | 342,732,000 | 7,309,081,618 | 8,906,342,299 | 271,636,379 | 9,177,978,678 | |||||||
Plus: Accounting policies changing | |||||||||||||||
Previous error correction | |||||||||||||||
Business combination under common control | |||||||||||||||
Other | |||||||||||||||
2. Balance at the beginning of this year | 685,464,000 | 565,955,441 | 3,109,240 | 342,732,000 | 7,309,081,618 | 8,906,342,299 | 271,636,379 | 9,177,978,678 | |||||||
3. Increased or decreased amount in this period (reducing amount is listed with "-") | -143,863 | 699,900,929 | 699,757,066 | 12,751,633 | 712,508,699 | ||||||||||
3.1 Total comprehensive income | -143,863 | 1,042,632,929 | 1,042,489,066 | -1,381,414 | 1,041,107,652 | ||||||||||
3.2 Owners' invested and reduced capital | 17,532,823 | 17,532,823 | |||||||||||||
3.2.1 Owner’ invested common stock | |||||||||||||||
3.2.2 Other equity instrument holders’ invested capital | |||||||||||||||
3.2.3 Amount of shares paid and reckoned in owners' equity | |||||||||||||||
3.2.4 Other | 17,532,823 | 17,532,823 |
3.3 Profit distribution | -342,732,000 | -342,732,000 | -3,399,776 | -346,131,776 | |||||||||||
3.3.1 Accrued surplus reserves | |||||||||||||||
3.3.2 Accrued general risk preparation | |||||||||||||||
3.3.3 Distribution to owners (or shareholders) | -342,732,000 | -342,732,000 | -3,399,776 | -346,131,776 | |||||||||||
3.3.4 Other | |||||||||||||||
3.4 Internal transfer of owners' equity | |||||||||||||||
3.4.1 Capital reserves transferred and increased capital (or capital stock) | |||||||||||||||
3.4.2 Surplus reserves transferred and increased capital (or capital stock) | |||||||||||||||
3.4.3 Surplus reserves covering deficit | |||||||||||||||
3.4.4 Retained earnings carried over from the benefit plan amount | |||||||||||||||
3.4.5 Retained earnings carried over from other comprehensive income | |||||||||||||||
3.4.6 Other | |||||||||||||||
3.5 Special reserves | |||||||||||||||
3.5.1 Withdrawal in this period | |||||||||||||||
3.5.2 Usage in this period | |||||||||||||||
3.6 Other | |||||||||||||||
4. Balance at the end of this period | 685,464,000 | 565,955,441 | 2,965,377 | 342,732,000 | 8,008,982,547 | 9,606,099,365 | 284,388,012 | 9,890,487,377 |
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
Item | This period | |||||||||||
Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Other | Total owners’ equity | |||
Preferred stock | Perpetual bonds | Other | ||||||||||
1. Balance at the end of last year | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 | |||||||
Plus: Accounting policies changing | ||||||||||||
Previous error correction | ||||||||||||
Other | ||||||||||||
2. Balance at the beginning of this year | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 | |||||||
3. Increased or decreased amount in this period (reducing amount is listed with "-") | -150,548,922 | -150,548,922 | ||||||||||
3.1 Total comprehensive income | 260,729,478 | 260,729,478 | ||||||||||
3.2 Owners' invested and reduced capital | ||||||||||||
3.2.1 Shareholders’ invested common stock | ||||||||||||
3.2.2 Other equity instrument holder’ invested capital | ||||||||||||
3.2.3 Amount of shares paid and reckoned in owners' equity | ||||||||||||
3.2.4 Other | ||||||||||||
3.3 Profit distribution | -411,278,400 | -411,278,400 | ||||||||||
3.3.1 Drew surplus reserves | ||||||||||||
3.3.2 Distribution to owners (or shareholders) | -411,278,400 | -411,278,400 | ||||||||||
3.3.3 Other | ||||||||||||
3.4 Internal transfer of owners' equity | ||||||||||||
3.4.1 Capital reserves transferred and increased capital (or capital stock) | ||||||||||||
3.4.2 Surplus reserves transferred and |
increased capital (or capital stock) | ||||||||||||
3.4.3 Surplus reserves covering deficit | ||||||||||||
3.4.4 Retained earnings carried over from the benefit plan amount | ||||||||||||
3.4.5 Retained earnings carried over from other comprehensive income | ||||||||||||
3.4.6 Other | ||||||||||||
3.5 Special reserves | ||||||||||||
3.5.1 Accrual in this period | ||||||||||||
3.5.2 Usage in this period | ||||||||||||
3.6 Other | ||||||||||||
4. Balance at the end of this period | 685,464,000 | 557,222,454 | 342,732,000 | 8,287,408,206 | 9,872,826,660 |
Unit: Yuan
Item | Last period | |||||||||||
Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Other | Total owners’ equity | |||
Preferred stock | Perpetual bonds | Other | ||||||||||
1. Balance at the end of last year | 685,464,000 | 557,222,454 | 342,732,000 | 7,811,100,555 | 9,396,519,009 | |||||||
Plus: Accounting policies changing | ||||||||||||
Previous error correction | ||||||||||||
Other | ||||||||||||
2. Balance at the beginning of this year | 685,464,000 | 557,222,454 | 342,732,000 | 7,811,100,555 | 9,396,519,009 | |||||||
3. Increased or decreased amount in this period (reducing amount is listed with "-") | 626,856,573 | 626,856,573 | ||||||||||
3.1 Total comprehensive income | 969,588,573 | 969,588,573 | ||||||||||
3.2 Owners' invested and reduced capital | ||||||||||||
3.2.1 Shareholders’ invested common stock | ||||||||||||
3.2.2 Other equity instrument holder’ invested capital | ||||||||||||
3.2.3 Amount of shares paid and |
reckoned in owners' equity | ||||||||||||
3.2.4 Other | ||||||||||||
3.3 Profit distribution | -342,732,000 | -342,732,000 | ||||||||||
3.3.1 Drew surplus reserves | ||||||||||||
3.3.2 Distribution to owners (or shareholders) | ||||||||||||
3.3.3 Other | ||||||||||||
3.4 Internal transfer of owners' equity | ||||||||||||
3.4.1 Capital reserves transferred and increased capital (or capital stock) | ||||||||||||
3.4.2 Surplus reserves transferred and increased capital (or capital stock) | ||||||||||||
3.4.3 Surplus reserves covering deficit | ||||||||||||
3.4.4 Retained earnings carried over from the benefit plan amount | ||||||||||||
3.4.5 Retained earnings carried over from other comprehensive income | ||||||||||||
3.4.6 Other | ||||||||||||
3.5 Special reserves | ||||||||||||
3.5.1 Accrual in this period | ||||||||||||
3.5.2 Usage in this period | ||||||||||||
3.6 Other | ||||||||||||
4. Balance at the end of this period | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 |
3. Company profile
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company” or the “Joint-stock Company”) wasincorporated as a joint-stock limited company in accordance with the Company Law of the People’sRepublic of China (the “PRC”) in the merger and reorganization carried out by Yantai Changyu GroupCo., Ltd. (“Changyu Group Company”) with its assets and liabilities in relation to wine business. TheCompany and its subsidiary companies (hereinafter collectively referred to as the “Group”) areengaged in the production and sale of wine, brandy and champagne, planting and purchase of grapes,development of tourism resources, etc. The registered address of the Company is Yantai City,Shandong Province, and the office address of the headquarters is 56 Dama Road, Zhifu District, YantaiCity, Shandong Province.
As at June 30, 2019, the Company issued 685,464,000 shares accumulatively. Refer to Note 7.30 fordetails.
The parent company of the Group is Changyu Group Company incorporated in China, which wasultimately and actually controlled by four parties, including Yantai Guofeng Investment Holding Co.,Ltd., ILLVA Saronno Holding Spa, International Finance Corporation and Yantai Yuhua Investment &Development Co., Ltd.
The financial statement and the consolidated financial statement of the Company were approved bythe Board of Directors on August 26, 2019.
The details of scope of the consolidated financial statement in this period can be seen in Note 9“Equity in other entities”. The details of scope changes of the consolidated financial statement in thisperiod can be seen in Note 8 “Changes of the consolidated scope”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Group implements the Accounting Standards for Business Enterprises (including the new andrevised editions published in 2014) (“ASBE”) published by the Ministry of Finance and relevant
regulations thereof.
Note-accounting basis and pricing principle
The note-accounting basis of financial accounting adopted by the Group is accrual system and themeasurement basis adopted by the Group in preparing its financial statement is historical cost.Subsequently, if the assets are impaired, the impairment provisions are made in accordance withrelevant accounting standards.
When the historical cost measurement is used, the assets are measured by the amount of cash or cashequivalent when the assets are purchased or the fair value of the consideration. The liabilities aremeasured by the actually received funds or assets for performing the current obligations, or thecontract amount for performing the current obligations, or the amount of cash or cash equivalent paidfor anticipated liabilities in the daily activities.
Fair value refers to a price received for selling an asset or paid for transferring a liability by the marketparticipant in orderly transactions on the measurement date. No matter the fair value is observable orestimated by the valuation technique, the fair value measured and disclosed in this financial statementis recognized on this basis.
The fair value measurement is divided into three levels based on the observable degree of the inputfair value and the importance of this input value on the whole fair value measurement:
*The input value of the first level is the unadjusted price of the same assets or liabilities which can beacquired in an active market on the measurement date.
*The input value of the second level is the directly or indirectly observable input value of relevantassets or liabilities except that of the first level.
*The input value of the third level is the unobservable input value of relevant assets or liabilities.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30, 2019, and no
issues or situations causing major doubts to this ability are found. Therefore, this financial statement isprepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of ASBE and gives a true and integrated view of thefinancial status and the consolidated financial status as at June 30, 2019, as well as the operating result,the consolidated operating result, the cash flow and the consolidated cash flow of the Company fromJanuary to June 2019.
5.2 Accounting period
The accounting period of the Group is from January 1 to December 31.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for processing tothe cash or cash equivalent is realized. The operating cycle of the Company is 12 months.
5.4 Recording currency
Since Renminbi (RMB) is the currency of the main economic environment in which the Company andthe domestic subsidiary companies thereof are situated, the Company and the subsidiary companiesthereof adopt RMB as the recording currency. The overseas subsidiary companies thereof determineEUR, CLP and AUD as the recording currency according to the main economic environment in whichthey are situated. The currency in this financial statement prepared by the Group is RMB.
5.5 Accounting treatment method for business combination under common control andnon-common control
5.5.1 Business combination and goodwill under non-common control
A business combination under non-common control is a business combination in which all of thecombining enterprises are not ultimately controlled by the same party or parties before and after thecombination.
The combination cost shall be the fair value of the assets paid, the liabilities incurred or assumed orthe equity instruments issued by the acquirer in exchange for the control over the acquiree. Theintermediary expenses such as audit, legal services and assessment consultation and other relatedmanagement expenses paid by the acquirer for business combination are included in the current profitsand losses when they occur.
The identifiable assets, liabilities and contingent liabilities which are obtained from the acquiree in thebusiness combination and meet the recognition conditions shall be measured on the acquisition dateaccording to the fair value thereof.
Where the cost of combination exceeds the acquirer’s interest in the fair value of the acquiree’sidentifiable net assets, the difference shall be recognized as goodwill as an asset and initially measuredat cost. Where the cost of combination is less than the acquirer’s interest in the fair value of theacquiree’s identifiable net assets, the acquirer firstly re-assesses the measurement of the fair values ofthe acquiree’s identifiable assets, liabilities and contingent liabilities and measurement of the cost ofcombination. If after that reassessment, the cost of combination is still less than the acquirer’s interestin the fair value of the acquiree’s identifiable net assets, the acquirer recognizes the remainingdifference immediately in profit or loss for the current period.
The goodwill formed due to business combination shall be separately listed in the consolidatedfinancial statement and measured on the basis of the cost minus the accumulative impairmentprovision.
5.6 Compiling methods of consolidated financial statement
The consolidation scope of the consolidated financial statement is determined on the basis of control.Control means that the investor holds the power in the invested party, obtains variable returns byparticipating in relevant activities of the invested party and has the ability to affect the amount of thereturns by using the power on the invested party. Once any change of the relevant facts and situationsresults in any change of relevant elements of the above definition of Control, the Group will carry outreappraisal.
The merger of any subsidiary company starts from the date when the Group acquires the power tocontrol this subsidiary company, while the termination of any subsidiary company ends in the datewhen the Group losses the power to control this subsidiary company.
As for any subsidiary company obtained in a business combination under non-common control, thebusiness result and the cash flow thereof since the acquisition date (date of obtaining the control power)shall have been properly included in the consolidated income statement and the consolidated cash flowstatement.
The principal accounting policies and accounting period adopted by the subsidiary companies shall bedetermined in accordance with the accounting policies and accounting period uniformly regulated bythe Company.
The influence of the internal transaction between the Company and the subsidiary companies as wellas among subsidiary companies on the consolidated financial statement shall be neutralized at the timeof combination.
The shares in the owner's equity of the subsidiary companies, which do not belong to the parentcompany, shall be recognized as the minority equity and listed under the item of “minority equity” ofthe owner’s equity in the balance sheet. The shares in the current profits and losses of the subsidiarycompanies, which belong to the minority equity, shall be listed under the item of “minority equity” ofthe net profit in the consolidated income statement.
If the loss of the subsidiary companies borne by minority shareholders exceeds the shares of theowner's equity entitled therein by the minority shareholders at the beginning of the period, thedifference shall be still credited against the minority equity.
5.7 Determination standard of cash and cash equivalents
Cash comprises cash on hand and demand deposit of the Company. Cash equivalents refer toshort-term highly liquid investments held by the Group which are readily convertible into knownamount of cash with an insignificant risk of changes in value.
5.8 Foreign currency transaction and foreign currency statement translation
5.8.1 Foreign currency transaction
At the time of initial recognition of a foreign currency transaction, the amount of the foreign currencyshall be translated into the amount of the recording currency at the spot exchange rate on thetransaction date.
The monetary items of the foreign currency transaction shall be translated into RMB at the spotchange rate on the balance sheet date. The currency translation difference generated by the differencebetween the spot change rate on the balance sheet date and the spot change rate at the initialrecognition or on the previous balance sheet date shall be included in the current profits and losses,except: ① the currency translation difference of the dedicated foreign currency loan that meets thecapitalization condition shall be included in the cost of assets as capitalization during the capitalizationperiod; ② the currency translation difference of the arbitrage tool to avoid foreign exchange risk shallbe treated according to the hedge accounting method; ③ the currency translation difference of theavailable-for-sale monetary items generated by changes of the book balance other than the amortizedcost shall be recognized as other comprehensive income and included in the current profits and losses.
5.8.2 Translation of foreign currency financial statement
In order to compile a consolidated financial statement, the foreign currency financial statement ofoverseas business shall be translated into RMB financial statement in accordance with the followingmethods: all asset and liability items in the balance sheet shall be translated at the spot exchange rateon the balance sheet date; the shareholders' equity items, except for the ones as "undistributed profits",shall be translated at the spot exchange rate at the time when they occur; all items and the itemsreflecting the accrual profit distribution in the profit statement shall be translated at the exchange ratesimilar to the spot exchange rate at the time when they occur; the undistributed profits at the beginningof the year shall be the translated to the undistributed profits at the end of the previous year; theundistributed profits at the end of the year shall be calculated and listed as the translated profitdistribution items; and the difference between the asset items and the sum of the liability items and theshareholders’ equity items shall be recognized as other comprehensive income and included in theshareholder's equity.
The foreign currency cash flows and the cash flows of the overseas subsidiary companies shall betranslated at the exchange rate similar to the spot exchange rate at the time when they occur; the
amount of the cash and cash equivalents impacted by the exchange rate movement shall be, as areconciling item, separately listed under “impact of exchange rate movement on cash and cashequivalents” in the cash flow statement.
The balance at the beginning of the year and the actual amount of the previous year shall be listed asthe amount translated according to the financial statement of the previous year.
5.9 Financial instruments
When becoming a party to a contract of financial instruments, the Company shall recognize a financialasset or financial liability.
5.9.1 Classification, recognition and measurement of financial assetsAccording to the business model of financial assets management and the contractual cash flowcharacteristics of financial assets, the Company divides financial assets into: financial assets measuredat amortized cost; financial assets measured at fair value and the variation of which is included inother comprehensive income; and financial assets measured at fair value and the variation of which isincluded in the current profits and losses.
At the time of initial recognition, financial assets shall be measured at their fair value. As for thefinancial assets measured at their fair value and the variation of which is included in the current profitsand losses, the transaction expenses thereof shall be directly included in the current profits and losses;as for other categories of financial assets, the transaction expenses thereof shall be included in initialrecognized cost. For accounts receivable or bills receivable arising from sale of products or provisionof services, which do not contain or do not take into account material financing elements, theCompany shall take the amount of consideration that the Company is entitled to receive as expected asthe initial recognized amount.
① Financial assets measured at amortized cost
The Company manages such financial assets by the following business model: collecting contractualcash flow as the target, with the contractual cash flow characteristics of such financial assets consistentwith the basic lending arrangement, that is, the cash flow generated on a specific date is only thepayment of principal and interest based on the outstanding principal amount. The Company shallrecognize the interest income of such financial assets by the actual interest rate method, and conductsubsequent measurement at amortized cost. The profits or losses generated from the amortization or
impairment shall be included in the current profits and losses.
② Financial assets measured at fair value and the variation of which is included in othercomprehensive incomeThe Company manages such financial assets by the following business model: aiming at bothreceiving contractual cash flow and selling, with the contractual cash flow characteristics of suchfinancial assets consistent with the basic lending arrangements. Such financial assets are measured atfair value and the variation of which is included in other comprehensive income, but impairmentlosses or gains, exchange gains and losses and interest income calculated by the effective interest ratemethod shall be included in the current profits and losses.In addition, the Company designates some non-tradable equity instrument investments as financialassets measured at fair value and the variation of which is included in other comprehensive income.The Company shall include relevant dividend income of such financial assets in the current profits andlosses, and the fair value changes in other comprehensive income. When the recognition of suchfinancial assets is terminated the accumulated gains or losses previously recorded in othercomprehensive income will be transferred into retained income from other comprehensive income,which shall not be included in the current profits and losses.
③ Financial assets measured at fair value and the variation of which is included in the current profitsand lossesThe Company divides those financial assets excluding the above financial assets measured atamortized cost and financial assets measured at fair value and the variation of which is included inother comprehensive income into financial assets measured at fair value and the variation of which isincluded in the current profits and losses, and list as tradable financial assets. In addition, at the time ofinitial recognition, in order to eliminate or significantly reduce accounting mismatches, the Companydesignates some financial assets as financial assets measured at fair value and the variation of which isincluded in the current profits and losses. For such financial assets, the Company adopts fair value forsubsequent measurement, and the variation in fair value shall be included in the current profits andlosses. The financial assets that have matured for more than one year since the balance sheet date andare expected to be held for more than one year are listed as other non-current financial assets.
5.9.2 Classification, recognition and measurement of financial liabilitiesAt the time of initial recognition, financial liabilities are divided into financial liabilities measured atfair value and the variation of which is included in the current profits and losses and other financialliabilities. As for the financial liabilities measured at fair value and the variation of which is included
in the current profits and losses, the transaction expenses thereof shall be directly included in thecurrent profits and losses; as for other financial liabilities, the transaction expenses thereof shall beincluded in initial recognized cost.
①Financial liabilities measured at fair value and the variation of which is included in the currentprofits and lossesFinancial liabilities measured at fair value and the variation of which is included in the current profitsand losses include tradable financial liabilities (including derivatives belonging to financial liabilities)and financial liabilities designated as those measured at fair value when initially recognized and thevariation of which is included in the current profits and losses.
Tradable financial liabilities (including derivatives belonging to financial liabilities) shall besubsequently measured at fair value, and the variation in the fair value shall be included in the currentprofits and losses except those related to hedge accounting.For the financial liabilities designated as those measured at fair value and the variation of which isincluded the current profits and losses, the variation in fair value caused by changes in the Company'sown credit risk is included into other comprehensive income, and when the recognition of this liabilityis terminated, the accumulated variation in fair value caused by changes in its own credit risk which isincluded into other comprehensive income shall be transferred into retained income.
The remaining variations in fair value are included in the current profits and losses. If any accountingmismatch in profits and losses is caused or enlarged by handling the impact of changes in the owncredit risk of such financial liabilities in the above way, the Company shall include all the gains orlosses of such financial liabilities (including the impact amount of changes in the credit risk of theenterprise) in the current profits and losses.
② Other financial liabilities
In addition to the financial assets of which the transfer doesn’t meet the conditions to terminate therecognition or financial liabilities formed by continuous involvement in the transferred financial assetsand other financial liabilities beyond the financial guarantee contract classified as financial liabilitiesmeasured at amortized cost, the financial liabilities shall be measured at the amortized cost forsubsequent measurement, and the profits or losses caused by termination of recognition oramortization shall be included in the current profits and losses.
5.9.3 Recognition basis and measurement method for the transfer of financial assets
Where a financial asset meets any of the following requirements, the recognition of it shall beterminated: ①The contractual rights for collecting the cash flow of the said financial asset areterminated; ②The financial asset has been transferred and almost all the risks and rewards in theownership of the financial asset have been transferred to the transferee; ③The financial asset has beentransferred, although the enterprise has neither transferred nor retained almost all the risks and rewardsin the ownership of the financial asset, it has given up its control over the financial asset. If theenterprise has neither transferred nor retained nearly all the risks and rewards in the ownership of thefinancial asset, and has not given up its control over the financial asset, relevant financial asset shall berecognized according to the extent of its continued involvement in the transferred financial asset, andrelevant liabilities shall be recognized accordingly. The extent of continued involvement in thetransferred financial asset refers to the risk level faced by the enterprise due to the change in the valueof the financial asset.
Where the overall transfer of the financial asset meets the derecognition conditions, the differencebetween the book value of the transferred financial asset as well as the consideration received due tosuch transfer and the summation of the cumulative amount of the fair value of the asset that isoriginally included in other comprehensive income shall be included in the current profits and losses.
Where the partly transfer of a financial asset meets the derecognition conditions of termination, thebook value of the transferred financial asset shall be distributed between the terminated part of therecognition and the unterminated part of the recognition, and the difference between the sum of theconsideration received as a result of the transfer and the accumulated mount of the changes in the fairvalue of the derecognized part that is originally included in other comprehensive income and theaforesaid distributed book amount shall be included in the current profits and losses.
The Company shall determine whether almost all the risks and rewards in the ownership of thefinancial assets sold by means of attached right of recourse or the financial assets that it holds whichare endorsed to transfer have been transferred. Where almost all the risks and rewards in the ownershipof the financial assets have been transferred to the transferee, the recognition of such financial assetsshall be terminated; Where almost all the risks and rewards in the ownership of the financial assets areretained, the recognition of such financial assets shall not be terminated; If almost all the risks andrewards in the ownership of the financial assets are neither transferred nor retained, the enterprise shallcontinue to judge whether it retains control over the assets and then conduct accounting treatment inaccordance with the principles described in the preceding paragraphs.
5.9.4 Derecognition of financial liabilities
Where the current obligation of a financial liability (or part thereof) has been discharged, the Companyshall terminate the recognition of such financial liability (or part thereof). If the Company (borrower)signs an agreement with the lender to replace the original financial liability by assuming the newfinancial liability, and the contract terms of the new financial liability are substantially different fromthose of the original financial liability, the recognition of the original financial liability shall beterminated and a new financial liability shall be recognized at the same time. If the Companysubstantially modifies the contract terms of the original financial liability (or part thereof), it shallterminate the recognition of the original financial liability and recognize a new financial liability inaccordance with the revised terms at the same time.
If the recognition of a financial liability (or part of it) is terminated, the Company shall record thedifference between its book value and the consideration paid (including the transferred non-cash assetsor liabilities assumed) into the current profits and losses.
5.9.5
Offsetting of financial assets and financial liabilities
Where the Company has a legal right that is currently enforceable to set off the recognized amount offinancial assets and financial liabilities, and intends either to settle on a net basis, or to realise thefinancial assets and clear off the financial liabilities simultaneously, the financial assets and financialliabilities shall be offset and the net amount is presented in the balance sheet. Except for the abovecircumstances, financial assets and financial liabilities shall be presented separately in the balancesheet and shall not be offset.
5.9.6 Determination method of the fair value of financial assets and liabilities
The fair value refers to the price that market participants need to pay to receive or transfer aliability when selling an asset in an orderly transaction that takes place on the measurementdate. Where there is an active market for a financial instrument, the Company shall determineits fair value by the quotation in the active market. Quotations in the active market are pricesthat are readily available from exchanges, brokers, trade associations, pricing services, etc., ona regular basis, which represent the prices of actual market transactions that occur in fair trade.Where there is no active market for financial instruments, the Company shall use valuationtechniques to determine their fair value. Valuation techniques include referring to prices used
in recent market transactions by parties familiar with the situation and willing to trade, currentfair values of other financial instruments that are substantially the same, discounted cash flowmethod, option pricing models, etc. At the time of valuation, the Company adopts valuationtechniques applicable to the current situation and supported by sufficient available data andother information, selects input values consistent with the asset or liability characteristicsconsidered by market participants in the transaction of related assets or liabilities, and givespriority to relevant observable input values as far as possible. When relevant observable inputvalues can’t be obtained or are not practicable to obtain, the non-inputable values shall beused.
5.9.7 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Companyafter deducting all of its liabilities. The Company issues (including refinancing), repurchases, sells orcancels equity instruments as changes in equity, and transaction costs related to equity transactions arededucted from the equity. The Company does not recognize any variation in the fair value of equityinstruments.
Dividends paid on the Company's equity instruments during their existence (including the “interest”generated by the instruments classified as equity instruments) shall be treated as profit distribution.
5.9.8 Impairment of financial assets
For financial assets measured at amortized cost and debt instrument investments measured at fair valueand whose changes are included in other comprehensive income, the Company shall recognizeprovision for losses on the basis of expected credit losses.
The Company takes reasonable and reliable information about past events, current situation andforecast of future economic situation into consideration, calculates the probability weighted amount ofthe present value of the difference between the cash flow receivable of the contract and the cash flowexpected to be received based on the weight of the risk of default, and recognizes the expected creditlosses.
On each balance sheet date, the Company measures the expected credit losses of financial instruments
at different stages respectively. If the credit risk of the financial instrument does not increasesignificantly after the initial recognition, in the first stage, the Company shall measure the provisionfor losses according to the expected credit losses in the next 12 months; If the credit risk of a financialinstrument has increased significantly since the initial recognition, but no credit impairment hasoccurred, in the second stage, the Company shall measure the provision for losses according to theexpected credit loss of the entire duration of the instrument; If the credit impairment of a financialinstrument has occurred since the initial recognition, in the third stage, the Company shall measure theprovision for losses according to the expected credit loss of the entire duration of the instrument.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that thecredit risk has not increased significantly since the initial recognition, and measures the provision forlosses according to the expected credit loss in the next 12 months.
For the financial instruments in the first and second stages and with low credit risk, the Companycalculates the interest income according to the book balance without deduction of impairmentprovision at the actual interest rate. For financial instruments in the third stage, interest income iscalculated according to the book balance minus the amortized cost at the actual interest rate after theprovision for impairment has been accrued.
When an individual financial asset can’t evaluate the information of the expected credit loss at areasonable cost, the Company divides the receivables into several combinations according to thecharacteristics of credit risk, and calculates the expected credit loss on the basis of the combination.
For bills receivable and accounts receivable, no matter whether there is a significant financingcomponent, the Company measures the provision for losses according to the expected credit lossthroughout the duration.
For the bills receivable divided into portfolio, the Company calculates the expected credit loss byreferring to the historical credit loss experience, combining the current situation as well as the forecastof the future economic situation, and through the default risk exposure and the expected credit lossrate of the entire duration.
For the accounts receivable divided into portfolio, the Company calculates the expected credit loss byreferring to the historical credit loss experience, combining the current situation as well as the forecastof the future economic situation, and formulating the comparison table of the overdue days of accounts
receivable and the expected credit loss rate of the whole duration.
For other receivables divided into portfolio, the Company calculates the expected credit loss byreferring to the historical credit loss experience, combining the current situation as well as the forecastof the future economic situation, and through the default risk exposure and the expected credit lossrate within the next 12 months or the entire duration.
The Company will include the accrued or transferred-back provision for losses in the current profitsand losses. For debt instruments that are measured at fair value and the variation of which is includedin other comprehensive income, the Company shall adjust other comprehensive income whileincluding impairment loss or profit in the current profits and losses.
5.10 Inventories
5.10.1 Categories of inventories
The inventories of the Group mainly include raw materials, goods in process and finished goods.Inventories are initially measured at cost. Inventory costs include purchase costs, processing costs andother expenses incurred to bring inventory to its current location and condition.
The agricultural products harvested are treated in accordance with the Accounting Standard forBusiness Enterprises No.1 – Inventories.
5.10.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated by the weighted average method.
5.10.3 Determination basis for net realisable value of inventories
On the balance sheet date, inventories are measured at the lower of cost and net realisable value. Ifthe net realisable value is below the cost of inventories, a provision for decline in value of inventoriesis made. Net realisable value is the estimated selling price in the ordinary course of business less theestimated costs of completion, the estimated costs necessary to make the sale and relevant taxes. Netrealisable value is determined on the basis of clear evidence obtained, and takes into consideration the
purposes of holding inventories and effect of post balance sheet events.
Provision for decline in value of other inventories is made based on the excess of cost of inventoryover its net realisable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previouslycaused inventories to be written down below cost no longer exist so that the net realisable value ofinventories is higher than their cost, the original provision for decline in value is reversed and thereversal is included in profit or loss for the period.
5.10.4 Inventory count system
The perpetual inventory system is maintained for stock system.
5.10.5 Amortization method for low cost and short-lived consumable items andpackaging materials
Packaging materials and low cost and short-lived consumable items are amortized using the immediatewrite-off method.
5.11 Non-current assets held for sale
Non-current assets and disposal groups are classified as held for sale category when the Grouprecovers the book value through a sale (including an exchange of nonmonetary assets that hascommercial substance) rather than continuing use.
Non-current assets or disposal groups classified as held for sale are required to satisfy the followingconditions: (1) the asset or disposal group is available for immediate sale in its present conditionsubject only to terms that are usual and customary for sales of such asset or disposal group; (2) the saleis highly probable, i.e. the Group has made a resolution about selling plan and obtained a confirmedpurchase commitment and the sale is expected to be completed within one year.
The Group measures the no-current assets or disposal groups classified as held for sale at the lower oftheir carrying amount and fair value less costs to sell. Where the carrying amount is higher than the net
amount of fair value less costs to sell, carrying amount should be reduced to the net amount of fairvalue less costs to sell, and such reduction is recognized in impairment loss of assets and included inprofit or loss for the period. Meanwhile, provision for impairment of held-for-sale assets are made.When there is increase in the net amount of fair value of non-current assets held for sale less costs tosell On the balance sheet date, the original deduction should be reversed in impairment loss of assetsrecognized after the classification of held-for-sale category, and the reverse amount is include in profitor loss for the period.
Non-current assets held for sale in non-current assets are not subject to depreciation or amortization.
5.12 Long-term equity investments
5.12.1 Judgment basis of control, joint control and significant influence
Control is the power to govern the financial and operating policies of an entity so as to obtain benefitsfrom its activities. Joint control is the contractually agreed sharing of control over an economic activity,and exists only when the strategic financial and operating policy decisions relating to the activityrequire the unanimous consent of the parties sharing control. Significant influence is the power toparticipate in the financial and operating policy decisions of the investee but is not control or jointcontrol over those policies. When determining whether an investing enterprise is able to exercisecontrol or significant influence over an investee, the effect of potential voting rights of the investee(for example, warrants and convertible debts) held by the investing enterprises or other parties that arecurrently exercisable or convertible shall be considered.
5.12.2 Determination of initial investment cost
For a long-term equity investment acquired not involving enterprises under common control, theinvestment cost of the long-term equity investment is the cost of acquisition.
Audit fee, legal services, evaluation and consulting fees and other related management costs inacquisition are expensed in profits and losses when happened.
Other long-term equity investments acquired from other than acquisitions are recognized usingoriginal cost.
5.12.3 Subsequent measurement and recognition of profit or loss
Long-term equity investment accounted for using the cost method
The financial statement of the Company accounts for long-term equity investment using the costmethod. A subsidiary is an investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost.Long-term equity investment is adjusted when capital is added or recollected. Investment income isrecognized in the period in accordance with the attributable share of cash dividends or profitdistributions declared by the investee.
5.12.4 Disposal of long-term equity investments
On disposal of a long-term equity investment, the difference between the proceeds actually receivedand receivable and the carrying amount is recognized in profit or loss for the period.
5.13 Investment properties
Investment property is property held to earn rentals or for capital appreciation or both.
An investment property is measured initially at cost. Subsequent expenditures incurred for suchinvestment property are included in the cost of the investment property if it is probable that economicbenefits associated with an investment property will flow to the Group and the subsequentexpenditures can be measured reliably. Other subsequent expenditures are recognized in profit or lossin the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment properties, and adopts adepreciation or amortization policy for the investment property which is consistent with that forbuildings or land use rights.
When an investment property is sold, transferred, retired or damaged, the Group recognizes theamount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss for
the period.
5.14 Fixed assets
5.14.1 Recognition condition
Fixed assets are tangible assets that are held for use in the production or supply of goods or services,for rental to others, or for administrative purposes, and have useful lives of more than one accountingyear. A fixed asset is recognized only when it is probable that economic benefits associated with theasset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets areinitially measured at cost.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if itis probable that economic benefits associated with the asset will flow to the Group and the subsequentexpenditures can be measured reliably. Meanwhile the carrying amount of the replaced part isderecognized. Other subsequent expenditures are recognized in profit or loss in the period in whichthey are incurred.
5.14.2 Depreciation method
A fixed asset is depreciated over its useful life using the straight-line method since the monthsubsequent to the one in which it is ready for intended use. The useful life, estimated net residualvalue rate and annual depreciation rate of each category of fixed assets are as follows:
Classification | Depreciation method | Depreciation life | Residual value rate | Annual depreciation rate |
Houses and buildings | Straight-line depreciation | 20-40 years | 0-5% | 2.4%-5.0% |
Machinery equipment | Straight-line depreciation | 5-30 years | 0-5% | 3.2%-20.0% |
Transportation tools | Straight-line depreciation | 4-12 years | 0-5% | 7.9%-25.0% |
Estimated net residual value assumes the situation where a fixed asset expire for its estimated usefullife and is in its expected final status. Estimated net residual value is the amount that the Group canobtain from the disposal less expected disposal fees.
5.14.3 Other explanations
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from itsuse or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired ordamaged, the amount of any proceeds on disposal of the asset net of the carrying amount and relatedtaxes is recognized in profit or loss for the period.
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciationmethod applied at least once at each financial year-end, and account for any change as a change in anaccounting estimate.
5.15 Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various constructionexpenditures during the construction period, borrowing costs capitalised before it is ready for intendeduse and other relevant costs. Construction in progress is not depreciated. Construction in progressis transferred to a fixed asset when it is ready for intended use.
5.16 Borrowing costs
Borrowing costs directly attributable to the assets meeting the capitalization conditions during theacquisition, construction or production shall be capitalized when expenditures for such asset andborrowing costs are incurred and activities relating to the acquisition, construction or production of theasset that are necessary to prepare the asset for its intended use or sale have commenced.Capitalization of borrowing costs shall be terminated when the qualifying asset being acquired,constructed or produced becomes ready for its intended use or sale. Capitalization of borrowing costsis suspended during the period in which the acquisition, construction or production of a qualifyingasset is suspended abnormally and when the suspension is for a continuous period of more than 3months, until the acquisition, construction or production of the asset is resumed. Other borrowingcosts are recognized as an expense in the period in which they are incurred.
The interest expenses actually incurred in the current period of the special loan shall be capitalizedafter deducting the interest income obtained by depositing the unused loan funds into the bank or theinvestment income obtained from the temporary investment.
5.17 Biological assets
The biological assets of the Group are productive biological assets.
Productive biological assets are biological assets, for example, held for the production of agriculturalproduce, provision of services or leasing Productive biological assets in the Group are vines toproduce grapes. A productive biological asset is initially measured at cost. The cost of a productivebiological asset self-grown or self-bred comprises those costs necessarily incurred and directlyattributable to the asset before the asset becomes available for its intended production and operatingpurposes, and any borrowing cost meeting the capitalisation criteria.
The productive biological assets are not accrued depreciation until reaching the intended productionand operation purposes. After reaching the intended production and operation purposes, the productivebiological assets are accrued depreciation within the service life straight-line depreciation. The servicelife, estimated net residual value rate and annual depreciation rate of different productive biologicalassets are as follows:
Category Useful life Estimated net residual rate Annual depreciation rateVines 20 years 5.0%
The Group evaluates the useful life and expected net salvage value by considering the normalproducing life of the productive biological assets.
The Group reviews the useful life and estimated net residual value of productive biological assets andthe depreciation method applied at least once at each financial year-end, and account for any change asa change in an accounting estimate.
On the sale, identification of any shortages during stocktaking, death or damage of biological asset, theproceeds on disposal net of the carrying amount and relevant taxes is recognized in profit or loss forthe current period.
5.18 Intangible assets
Intangible assets include land use right, software, trademark, etc.
An intangible asset is measured initially at cost method. When an intangible asset with a finite usefullife is available for use, its original cost less net residual value and any accumulated impairment lossesis amortized over its estimated useful life using the straight-line method. Intangible assets withindefinite useful lives are not amortized. The useful lives of the intangible assets are as follows:
Category Useful life Estimated net residual rate Annual amortization rateLand use right 40-50 years - 2%-2.5%Software 5-10 years - 10%-20%Trademark 10 years 10%
Except for the above intangible assets with finite useful life, the Group also has land use right andtrademark use right with infinite useful lives. Land use right with infinite useful life refers to thepermanent land property right held by the Company for purchasing by Vi?a Indómita, S.A., Vi?a DosAndes, S.A., and Bodegas Santa Alicia SpA. (collectively referred to as the "Chile Indomita WineGroup") and Kilikanoon Estate Pty Ltd (hereinafter referred to as “Australian Kilikanoon Estate”)according to related Chilean and Australian law, which doesn’t need to be amortized. Trademark useright refers to the trademark held by the Group for purchasing Chile Indomita Wine Group andAustralian Kilikanoon Estate, which has no finite useful life. The valuation of trademark use right isbased on the trends in the market and competitive environment, product cycle, and managinglong-term development strategy. Those basis indicated the trademark will provide net cash flows to theGroup within a given period. Because it was hard to predict the period that it would bring economicbenefits to the Group, the useful lives were uncertain.
For an intangible asset with a finite useful life, the Group reviews the useful life and Amortizationmethod at the end of the period, and makes adjustments when necessary.
5.19 Impairment of long-term assets
The Group and the Company review the impairment status of long-term equity investments, fixedassets, investment real estate, construction in progress, productive biological asset and intangibleassets with finite useful life at the end of each year. If the assets exist impairment, the Group estimatesthe recoverable amount of the assets. Intangible assets with indefinite useful life and intangible assetsnot yet available for use are tested for impairment annually, irrespective of whether there is anyindication that the assets may be impaired.
Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverableamount of an individual asset, the recoverable amount of the asset group to which the asset belongswill be estimated. The recoverable amount of an asset is the higher of its fair value less costs ofdisposal and the present value of the future cash flows expected to be derived from the asset.
If recoverable amount of assets is less than book value, the difference is recognized as impairmentprovision and expensed in current period.
Goodwill is tested for impairment at least at the end of each year. For the purpose of impairmenttesting, goodwill is considered together with the related assets group (s), i.e., goodwill is reasonablyallocated to the related assets group (s) or each of assets group (s) expected to benefit from thesynergies of the combination. An impairment loss is recognized if the recoverable amount of the assetsgroup or sets of assets groups (including goodwill) is less than its carrying amount. The impairmentloss is firstly allocated to reduce the carrying amount of any goodwill allocated to such assets group orsets of assets groups, and then to the other assets of the group pro-rata on the basis of the carryingamount of each asset (other than goodwill) in the group.
The impairment is recognized in profit or loss for the period in which it is incurred and will not bereversed in any subsequent period.
5.20 Long-term unamortized expenses
The Long-term unamortized expenses are amortized evenly over the period of estimated earnings, andthe long-term unamortized expenses of the Group are amortized over the following period:
Amortization periodLand requisition fee 50 yearsLand lease prepayment 50 yearsGreening fee 5-20 yearsLeasehold improvement 3-5yearsOther 3 years
5.21 Employee remuneration
5.21.1 Accounting treatments of short-term remuneration
In an accounting period in which an employee has rendered service to the Group, the Grouprecognizes the actual long-term remuneration for that service as a liability, and includes in the currentprofits and losses or the related asset costs. Employee welfare expenses incurred by the Group shall berecorded into the current profits and losses or related asset costs according to the actual amount.Non-monetary employee benefits are measured at fair value.
Social insurances such as medical insurance, injury insurance and pregnancy insurance, housing funds,labor union and employee education fees paid by the Group for employees, are recognized as relevantliability in the period in which the employees provide service, in accordance with the regulatedrecognition basis and percentage. The related expenditures are included in the current profits andlosses or related asset costs.
5.21.2 Accounting treatments of retired benefits
Retired benefits of the Group are all predetermined provision plan.
In the period in which the employees provide service, the Group recognize liability in accordance withthe amounts to be paid calculated according to the predetermined provision plan, and the relatedexpenditures are either included in cost of related assets or charged to profit or loss in the period whenthey are incurred.
5.21.3 Accounting treatments of termination benefits
When providing termination benefits to employees, the Group recognize employee benefits payrollresulting from termination benefits at the earlier of: the Group cannot unilaterally withdraw from thetermination plan or the redundancy offer; the Group recognize relevant costs and expenses related tothe payment of termination benefits in reconstructuring.
5.22 Revenue
5.22.1 Revenue from sale of goods
Revenue from sale of goods is recognized when the Group has transferred to the buyer the significantrisks and rewards of ownership of the goods. The Group retains neither continuing managerialinvolvement to the degree usually associated with ownership nor effective control over the goods sold.The amount of revenue can be measured reliably and it is probable that the associated economicbenefits will flow to the Group. The associated costs incurred or to be incurred can be measuredreliably.
5.22.2 Revenue from rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably,revenue associated with the transaction shall be recognized by reference the stage of completion of thetransaction at the reporting date. The outcome of a transaction can be estimated reliably.
When the outcome of the transaction involving the rendering of services cannot be estimated reliably,revenue is recognized only to the extent of the costs incurred that will be recoverable, and the costsincurred are recognized as expenses for the period. When it is not probable that the costs incurred willbe recovered, revenue is not recognized.
5.23 Government grants
Government grants are transfer of monetary assets and non-monetary assets from the government tothe Group at no consideration. A government grant is recognized only when the Group can complywith the conditions attaching to the grant and the Group will receive the grant.
Monetary government grants are measured by the amount received or receivable.
5.23.1 Judgment basis and accounting treatments of government grant related to anasset
A government grant related to an asset is recognized as deferred income, and evenly amortized toprofit or loss over the useful life of the related asset.
5.23.2 Judgment basis and accounting treatments of government grant related to income
For a government grant related to income, if the grant is a compensation for related expenses or lossesto be incurred in subsequent periods, the grant is recognized as deferred income, and recognized inprofit or loss over the periods in which the related costs are recognized. If the grant is a compensationfor related expenses or losses already incurred, the grant is recognized immediately in profit or loss forthe period.
A government grant related to the Group's daily activities is recognized in other income based on thenature of economic activities; a government grant is not related to the Group's daily activities isrecognized in non-operating income and expenses.
The Company's government loans with below-market rate of interest are directly paid to the Company,and the related low rate interest will write off related borrowing costs. The government loans withbelow-market rate of interest obtained by other subsidiaries of the Group are government loans, whichis provided by local bureau of finance through bank with below-market rate of interest. The actualamount of the loan received by the Group recognized as borrowings, and the related borrowing costsare calculated according to the principal of the loan and the below-market rate.
5.24 Deferred income tax assets/deferred income tax liabilities
The income tax expenses include current income tax and deferred income tax.
5.24.1 Current income tax
On the balance sheet date, current income tax liabilities (or assets) for the current and prior periods aremeasured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
5.24.2 Deferred income tax assets and deferred income tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their taxbase, or between the nil carrying amount of those items that are not recognized as assets or liabilitiesand their tax base that can be determined according to tax laws, deferred income tax assets andliabilities are recognized using the balance sheet liability method.
Deferred tax is generally recognized for all temporary differences. Deferred income tax assets fordeductible temporary differences are recognized to the extent that it is probable that taxable profitswill be available against which the deductible temporary differences can be utilised. However, fortemporary differences associated with the initial recognition of goodwill and the initial recognition ofan asset or liability arising from a transaction (not a business combination) that affects neither theaccounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred taxasset or liability is recognized.
For deductible losses and tax credits that can be carried forward, deferred income tax assets arerecognized to the extent that it is probable that future taxable profits will be available against whichthe deductible losses and tax credits can be utilised.
Deferred income tax liabilities are recognized for taxable temporary differences associated withinvestments in subsidiaries and associates, and interests in joint ventures, except where the Group isable to control the timing of the reversal of the temporary difference and it is probable that thetemporary difference will not reverse in the foreseeable future. Deferred income tax assets arisingfrom deductible temporary differences associated with such investments and interests are onlyrecognized to the extent that it is probable that there will be taxable profits against which to utilise thebenefits of the temporary differences and they are expected to reverse in the foreseeable future.
On the balance sheet date, deferred income tax assets and liabilities are measured at the tax rates,according to tax laws, that are expected to apply in the period in which the asset is realised or theliability is settled.
Current and deferred tax expenses or income are recognized in profit or loss for the period, exceptwhen they arise from transactions or events that are directly recognized in other comprehensiveincome or in shareholders' equity, in which case they are recognized in other comprehensive income orin shareholders' equity; and when they arise from business combinations, in which case they adjust thecarrying amount of goodwill.
On the balance sheet date, the carrying amount of deferred income tax assets is reviewed and reducedif it is no longer probable that sufficient taxable profits will be available in the future to allow thebenefit of deferred income tax assets to be utilised. Such reduction in amount is reversed when itbecomes probable that sufficient taxable profits will be available.
5.24.3 Net off of income taxes
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or torealise the assets and settle the liabilities simultaneously, current tax assets and current tax liabilitiesare offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferredincome tax assets and deferred income tax liabilities relate to income taxes levied by the same taxationauthority on either the same taxable entity or different taxable entities which intend either to settlecurrent tax assets and liabilities on a net basis or to realise the assets and liabilities simultaneously, ineach future period in which significant amounts of deferred income tax assets or liabilities areexpected to be reversed, deferred income tax assets and deferred income tax liabilities are offset andpresented on a net basis.
5.25 Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all therisks and rewards of ownership to the lessee. All other leases are classified as operating leases.
5.25.1 Operating lease accounting treatments
The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease,and are either included in the cost of related asset or charged to profit or loss for the period. Initialdirect costs incurred are charged to profit or loss for the period.
The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over theterm of the relevant lease. Initial direct costs with more than an insignificant amount are capitalisedwhen incurred, and are recognized in profit or loss on the same basis as rental income over the leaseterm. Other initial direct costs with an insignificant amount are charged to profit or loss in the periodin which they are incurred. Contingent rents are charged to profit or loss in the period in which they
actually arise.
5.26 Changes in major accounting policies and accounting estimates
5.26.1 Changes in major accounting policies
Content and reason of accounting policy change | Examination and approval procedure | Remarks |
In 2017, the Ministry of Finance issued the revised Accounting Standards for Enterprises No.22–Recognition and Measurement of Financial Instruments, Accounting Standards for Enterprises No.23–Transfer of Financial Assets, Accounting Standards for Enterprises No.24 –Hedging and Accounting Standards for Enterprises No.37- Presentation of Financial Instruments (hereinafter referred to as “New Financial Instruments Standards”). From January 1, 2019, the Group conducted accounting treatment in accordance with the above newly revised standards. According to the linkage provisions, no adjustment will be made to the information during the comparable period. The undistributed profits at the beginning of this reporting period will be retroactively adjusted based on the difference between the new standards and the existing standards on the first day of implementation. | Approved by the second meeting of the eighth Board of Directors. | In the consolidated balance sheet on January 1, 2019, the accounts receivable changed from RMB 242,153,083 to RMB 237,781,161; the deferred income tax assets were changed from RMB 285,436,259 to RMB 286,529,239; and the undistributed profit was changed from RMB 8,008,982,547 to RMB 8,005,703,605. |
According to the requirements in the Notice on Revising, Printing & Distributing Financial Report Format for General Enterprises in 2019 (Cai Kuai [2019]No. 6), in the balance sheet, the item of “bills receivable and accounts receivable” shall be divided into “bills receivable” and “accounts receivable”; and the item of “bills payable and accounts payable” shall be divided into “bills payable” and “accounts payable”; in the income statement, the item of “R&D expenses” not only reflects the expensed expenditure incurred in the research and development process, but also includes the amortization of self-developed intangible assets listed in the item of “management expenses”. | Approved by the second meeting of the eighth Board of Directors. | The change of accounting policy has no impact on the merger and the net profit of the Company and the owner's equity. |
5.26.2 Changes in major accounting estimates
Nil
5.26.3 Particulars of first implementation of New Financial Instruments Standards, newincome standards, and new lease standards to adjust the first implementation of related
items in the financial statements at the beginning of the year
Consolidated Balance Sheet
Unit: Yuan
Item | December 31, 2018 | January 1, 2019 | Adjusted amount |
Bills receivable | 288,667,988 | -288,667,988 | |
Accounts receivable | 242,153,083 | 237,781,161 | -4,371,922 |
Receivables financing | 288,667,988 | 288,667,988 | |
Available-for-sale financial assets | 467,251 | -467,251 | |
Other non-current financial assets | 467,251 | 467,251 | |
Deferred income tax assets | 285,436,259 | 286,529,239 | 1,092,980 |
Undistributed profit | 8,008,982,547 | 8,005,703,605 | -3,278,942 |
Total owner’s equity | 9,606,099,365 | 9,602,820,423 | -3,278,942 |
Explanation for adjustment:
Unit: Yuan
Item | Book value listed according to the original standards on December 31, 2018 | Impact of the New Financial Instrument Standards | Impact of changes in presentation of other financial statements | Book value listed according to the new standards on January 1, 2019 |
Bills receivable and accounts receivable | 530,821,071 | -530,821,071 | ||
Bills receivable | -288,667,988 | 288,667,988 | ||
Accounts receivable | -4,371,922 | 242,153,083 | 237,781,161 | |
Receivables financing | 288,667,988 | 288,667,988 | ||
Available-for-sale financial assets | 467,251 | -467,251 | ||
Other non-current financial assets | 467,251 | 467,251 | ||
Deferred income tax assets | 285,436,259 | 1,092,980 | 286,529,239 | |
Total | 816,724,581 | -3,278,942 | 813,445,639 |
Balance Sheet of the Parent Company
Unit: Yuan
Item | December 31, 2018 | January 1, 2019 | Adjusted amount |
Bills receivable | 39,885,254 | -39,885,254 | |
Accounts receivable | 1,447,973 | 1,447,973 | |
Receivables financing | 39,885,254 | 39,885,254 | |
Total owner’s equity | 10,023,375,582 | 10,023,375,582 |
Explanation for adjustment:
Unit: Yuan
Item | Book value listed according to the original standards on December 31, 2018 | Impact of the New Financial Instrument | Impact of changes in presentation of other financial statements | Book value listed according to the new standards on January 1, 2019 |
Standards | ||||
Bills receivable and accounts receivable | 41,333,227 | -41,333,227 | ||
Bills receivable | -39,885,254 | 39,885,254 | ||
Accounts receivable | 1,447,973 | 1,447,973 | ||
Receivables financing | 39,885,254 | 39,885,254 | ||
Other receivables | 1,025,643,356 | 1,025,643,356 | ||
Total | 1,066,976,583 | 1,066,976,583 |
5.27 Other
Critical judgments in applying accounting policies and key assumptions and uncertainties inaccounting estimates
In the application of accounting policies as set out in Note 4, the Group is required to make judgments,estimates and assumptions about the carrying amounts of items in the financial statements that cannotbe measured accurately, due to the internal uncertainties of the operating activities. These judgments,estimates and assumptions are based on historical experience of the Group's management as well asother factors that are considered to be relevant. Actual results may differ from these estimates.
The Group periodically reviews the judgments, estimates and assumptions above on a going concernbasis. For those changes in accounting policies that only affect current financial statements, theinfluences are recognized in current period. For those changes in accounting policies that affect bothcurrent and future financial statements, the influences are recognized in both current and prospectiveperiods.
Key assumption and uncertainties in accounting estimates
The following are key assumptions for after balance sheet date event and other factors of uncertainestimation. They may cause material adjustment on balance sheet in following accounting period.
Deferred income tax assets recognized by deductible loss
Deferred income tax assets are recognized for all unused tax losses to the extent that it is probable thattaxable profit will be available against which the losses can be utilized. Significant managementjudgment is required to determine the amount of deferred income tax assets that can be recognized,
based upon the likely timing and level of future taxable profits together with future tax planningstrategies.
Depreciation of fixed assets
The depreciation is calculated on the straight line basis to write-off the cost of each item of fixedassets to its residual value over its estimated useful life. The Group's management determines theestimated useful lives for its fixed assets. This estimate is based on the historical experience of theactual useful lives of fixed assets of similar nature and functions. If the previous estimates havesignificant changes, depreciation expenses will be adjusted in the future period.
Impairment of long-term assets
The Group assesses whether the recoverable amount is lower than the book value. If there are anyindicators that the book value of non-current assets cannot be fully recoverable, impairment lossesshould be recorded.
The recoverable amount is the higher of an asset's fair value less costs to sell and the present value ofthe future cash flows expected to be derived from an asset. As it is difficult for the Group to obtainthe quoted market price of the assets (or assets group), the fair value of the assets cannot be reliablyestimated. When estimating the present value of future cash flows, it is necessary to make importantjudgments about the output, selling price, related operating costs, discount rate used in calculating thepresent value of the asset (or asset group), etc. In estimating the recoverable amount, the Group usesall readily available information, including projections of production volumes, selling prices andassociated operating costs based on reasonable and supportable assumptions.
Inventory depreciation provision accrued based on net realizable value
The inventories are measured on the lower of carrying value and net realizable value, and provisionshould be made for impairment on obsolete and slow moving inventories. The Group will reassesswhether the net realizable value is lower than the carrying cost at the end of each year.
Preparation for the measurement of the fair value of identifiable assets and liabilities of theacquiree from a business combination
For the cost of business combination, the Group allocates the purchase price based on the fair value ofthe identifiable assets and liabilities of the acquiree on the date of acquisition. When measuring the fairvalue of the above identifiable assets and liabilities in accordance with the present value of future cashflow, the management of the Group needs to estimate the sales growth rate based on the supply anddemand situation of the future market to forecast the cash flow, and consider to choose the appropriatediscount rate for the discount. The management may use significant accounting estimates andjudgments in the progress.
6. Taxes
6.1 The main taxes and tax rates are as follows:
6.2 Tax incentives and relative permit
Ningxia Changyu Grape Growing Co., Ltd.("Ningxia Growing"), a subsidiary of the Group, whoseprincipal activity is grape growing is incorporated in Ningxia Huizu Autonomous Region. Accordingto clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income Tax Measures forImplementation, Ningxia Growing enjoys an exemption of corporate income tax.
Yantai Changyu Grape Growing Co., Ltd.(" Grape Growing "), a branch of the Company, whoseprincipal activity is grape growing is incorporated in Zhifu District, Yantai City, Shandong Province.According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income TaxMeasures for Implementation, Grape Growing enjoys an exemption of corporate income tax.
Tax category | Taxation basis | Tax rates |
Value added tax | Levied on the balance between the output tax calculated based on taxable income and the input tax allowed to be deducted in current period | 13%, 9% 6% (Chinese), 20% (France), 21% (Spain), 19% (Chile), 10% (Australia) |
Consumption tax | Levied on taxable income | 10%, 20% (Chinese) |
City development tax | Levied on circulation tax actually paid | 7% (Chinese) |
Corporate income tax | Levied on taxable income | 25%(Chinese), 33.3%(France), 28% (Spain), 27% (Chile), 30% (Australia) |
Xinjiang Tianzhu Co., Ltd ("Xinjiang Tianzhu"), a subsidiary of the Company, is an enterprise of wineproduction and sales incorporated in Shihezi city, Xinjiang Weizu Autonomous. In accordance with theNotice on Tax Policy Issues concerning Further Implementation of the Western China DevelopmentStrategy (Cai Shui [2011] No.58), Xinjiang Tianzhu is qualified to enjoy preferential taxation policies,which means it can pay corporate income tax at a preferential rate of 15% for the period from 2015 to2020.
Xinjiang Babao Baron Chateau Co., Ltd. ("Shihezi Chateau"), a subsidiary of the Company, is anenterprise of wine production and sales incorporated in Shihezi city, Xinjiang Weizu Autonomous. Inaccordance with the Notice on Tax Policy Issues concerning Further Implementation of the WesternChina Development Strategy (Cai Shui [2011] No.58), Shihezi Chateau is qualified to enjoypreferential taxation policies, which means it can pay corporate income tax at a preferential rate of15% for the period from 2015 to 2020.
7. Notes to items in the consolidated financial statement
7.1 Monetary capital
Unit: Yuan
Item | Ending balance | Beginning balance |
Cash on hand | 70,198 | 114,335 |
Bank deposit | 1,756,744,006 | 1,382,399,749 |
Other monetary capital | 91,818,749 | 93,186,393 |
Total | 1,848,632,953 | 1,475,700,477 |
As at June 30, 2019, the restricted bank deposit details are listed as follows:
Unit: Yuan
Item | Ending balance | Beginning balance |
Housing fund of the unit | 2,647,877 | 2,611,350 |
Total | 2,647,877 | 2,611,350 |
As at June 30, 2019, the details of other monetary funds are listed as follows:
Unit: Yuan
Item | Ending balance | Beginning balance |
Pledge of fixed deposits by Yantai Changyu Wine Research, Development and Manufacture Co., Ltd. (“R&D Company”) | 46,100,000 | 46,100,000 |
Guaranteed deposits paid for the letter of credit | 44,540,850 | 44,540,850 |
Account balance of Alipay | 1,042,367 | 2,483,816 |
Guaranty money for the unit card | 125,532 | 51,727 |
Guaranty money for ICBC platform | 10,000 | 10,000 |
Total | 91,818,749 | 93,186,393 |
As at June 30, 2019, the bank deposits of the Group including short-term fixed deposits ranging from3 months to 12 months amounted to RMB 180,439,250 Yuan (December 31, 2018: RMB 173,042,400Yuan), with the interest rates ranging from 1.40% to 2.03%.
7.2 Bills receivable
7.2.1 Classification of bills receivable
Unit: Yuan
Type | Ending balance | Beginning balance |
Bank acceptance | 288,667,988 | |
Trade acceptance | ||
Total | 288,667,988 |
7.2.2 Provision for bad debts accrued, withdrawn or transferred back in this periodNil
7.2.3 Bills receivable pledged by the Company at the end of periodNil
7.2.4 Bills receivable endorsed or discounted by the Company at the end of period butnot yet matured as of the balance sheet date
Unit: Yuan
Item | Amount terminating recognition at the end of period | Amount not terminating recognition at the end of period |
Bank acceptance | 275,760,494 | |
Trade acceptance | ||
Total | 275,760,494 |
7.2.5 Bills receivable reclassified as accounts receivable by the Company due to thedefault of drawer at the end of period
Nil
7.2.6 Bills receivable actually cancelled after verification in this periodNil
7.3 Accounts receivable
7.3.1 Accounts receivable disclosed by type
Unit: Yuan
Type | Ending balance | Beginning balance | ||||||||
Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
Accounts receivable for which provision for bad debts is accrued on a single item basis | 242,153,083 | 100% | 242,153,083 | |||||||
Including: | ||||||||||
Accounts receivable for which provision for bad debts is accrued on a combined basis | 191,269,049 | 100% | 5,137,857 | 2.78% | 186,131,192 | |||||
Including: | ||||||||||
Accounts receivable for which provision for bad debts is accrued by credit risk features | 191,269,049 | 100% | 5,137,857 | 2.78% | 186,131,192 | |||||
Total | 191,269,049 | 100% | 5,137,857 | 2.78% | 186,131,192 | 242,153,083 | 100% | 242,153,083 |
Provision for bad debts accrued on a combined basis:
Unit: Yuan
Name | Ending balance | ||
Book balance | Provision for bad debts | Accrued proportion | |
Accounts receivable for which provision for bad debts is accrued by credit risk features | 191,269,049 | 5,137,857 | 2.78% |
Total | 191,269,049 | 5,137,857 | -- |
Disclosed by age:
Unit: Yuan
Age | Ending balance |
Within 1 year (including) | 180,854,504 |
1-2 years | 8,978,048 |
2-3 years | 1,199,269 |
Over 3 years | 237,228 |
Total | 191,269,049 |
As at June 30, 2019, the accounts receivable with ownership restrictions were RMB 31,134,017 Yuan(December 31, 2018: RMB 52,015,032 Yuan). Please refer to Note 7.18 for details.
7.3.2 Provision for bad debts accrued, withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
Unit: Yuan
Type | Beginning balance of the original financial instruments standards | Adjusted amount in the first implementation of the New Financial Instruments Standards | Beginning balance of the year after adjustment | Changes in t his period | Ending balance | ||
Accrued | Withdrawn or transferred back | Cancelled | |||||
Accounts receivable for which provision for bad debts is accrued by credit risk features | 4,371,922 | 4,371,922 | 765,935 | 5,137,857 | |||
Total | 4,371,922 | 4,371,922 | 765,935 | 5,137,857 |
There were no provision for bad debts withdrawn or transferred back in this period.
7.3.3 Accounts receivable actually cancelled after verification in this period
Nil
7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the endingbalance
Unit: Yuan
Unit | Relationship with the Company | Amount | Period | Percentage in total accounts receivable |
Nonggongshang Supermarket (Group) Co., Ltd. | Third party | 10,077,717 | Within 1 year | 5.3% |
Suguo Supermarket Co., Ltd. | Third party | 7,168,620 | Within 1 year | 3.7% |
Vi?edos y Bodegas Las Pircas | Third party | 6,917,840 | Within 1 year | 3.6% |
Lianhua Supermarket Holdings Co., Ltd. | Third party | 5,408,819 | Within 1 year | 2.8% |
MARKS AND SPENCER | Third party | 5,365,322 | Within 1 year | 2.8% |
Total | -- | 34,938,318 | -- | 18.3% |
7.3.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.3.6 Accounts receivable transferred and included in assets and liabilitiesNil
7.4 Receivables financing
Unit: Yuan
Item | Ending balance | Beginning balance |
Bank acceptance | 372,281,872 | |
Total | 372,281,872 |
7.5 Advance payment
7.5.1 Advance payment listed by age
Unit: Yuan
Age | Ending balance | Beginning sum | ||
Amount | Proportion | Amount | Proportion | |
Within 1 year | 3,490,928 | 100% | 4,219,949 | 100% |
1-2 years | ||||
2-3 years | ||||
More than 3 years | ||||
Total | 3,490,928 | -- | 4,219,949 | -- |
7.5.2 Advance payment collected by the prepaid parties of top 5 units ranked by theending balance
Unit: Yuan
Category of client | Relationship with the Group | Amount | Age | Reason for unsettlement | Percentage in the total advance payment% |
Ningxia Vangarie Wine Co., Ltd. | Third party | 600,000 | Within 1 year | Failure to receive the goods | 17.2% |
Yantai Power Supply Company of State Grid Shandong Electric Power Company | Third party | 500,000 | Within 1 year | Prepaid electricity purchasing fund | 14.3% |
DONELLI VINI S.P.A. | Third party | 463,523 | Within 1 year | Failure to receive the goods | 13.3% |
YEDA Thermal Power Construction & Installation Engineering Co., Ltd. | Third party | 250,545 | Within 1 year | Failure to receive the goods | 7.2% |
Yantai Deyi Hardware Mechanical & Electrical Co., Ltd. | Third party | 192,045 | Within 1 year | Failure to receive the goods | 5.5% |
Total | -- | 2,006,113 | -- | -- | 57.4% |
7.6 Other receivables
Unit: Yuan
Item | Ending balance | Beginning balance |
Interest receivable | 2,099,109 | 1,332,681 |
Dividends receivable | ||
Other receivables | 26,519,874 | 21,303,405 |
Total | 28,618,983 | 22,636,086 |
7.6.1 Interest receivable
Unit: Yuan
Item | Ending balance | Beginning balance |
Fixed deposit | 2,099,109 | 1,332,681 |
Entrusted loan | ||
Bond investment | ||
Total | 2,099,109 | 1,332,681 |
7.6.2 Other receivables
7.6.2.1 Other receivables classified by nature
Unit: Yuan
Nature | Ending book balance | Beginning book balance |
Deposit and guaranty money receivable | 9,991,516 | 10,453,624 |
Imprest receivable | 2,776,485 | 2,274,038 |
Accounts receivable from related parties | 1,911,880 | 813,440 |
Consumption tax and added-value tax export rebate | 9,651,893 | 6,273,882 |
Other | 2,188,100 | 1,488,421 |
Total | 26,519,874 | 21,303,405 |
7.6.2.2 Disclosed by age
Unit: Yuan
Age | Ending balance |
Within 1 year (including) | 15,284,516 |
1-2 years | 1,162,933 |
2-3 years | 8,302,579 |
More than 3 years | 1,769,846 |
Total | 26,519,874 |
7.6.2.3 Provision for bad debts accrued, withdrawn or transferred back in this periodThe provision for bad debts accrued in this period was RMB 0 Yuan; and that withdrawn ortransferred back in this period was RMB 0 Yuan.
7.6.2.4 Other receivables actually cancelled after verification in this period
Nil
7.6.2.5 Other receivables collected by the borrowers of top 5 units ranked by the endingbalance
Unit: Yuan
Unit | Nature | Ending balance | Age | Percentage in total ending balance of other accounts receivable | Ending balance of provision for bad debts |
YEDA Construction Industry Association | Construction guaranty money | 7,709,477 | Within 3 years | 29.10% | |
Yantai God Horse Packing Co., Ltd. Printing Branch | Lease payment receivable | 1,626,880 | Within 1 year | 6.10% | |
Yantai Zhongya Medical Health Wine Co., Ltd. | Lease payment receivable | 285,000 | Within 1 year | 1.10% | |
YEDA Finance Bureau | Guaranty money | 198,056 | Within 1 year | 0.70% | |
Yantai Power Supply Company of State Grid Shandong Electric Power Company | Deposit | 80,000 | Within 1 year | 0.30% | |
Total | -- | 9,899,413 | -- | 37.30% |
7.6.2.6 Accounts receivable involving government subsidies
Nil
7.6.2.7 Other receivables that are terminated for recognition due to transfer of financialassets
Nil
7.6.2.8 Other receivables transferred and then included in assets and liabilitiesNil
7.7 Inventories
7.7.1 Inventory classification
Unit: Yuan
Item | Ending balance | Beginning balance |
Book balance | Depreciation provision | Book value | Book balance | Depreciation provision | Book value | |
Raw materials | 88,705,179 | 88,705,179 | 67,267,035 | 67,267,035 | ||
Goods in process | 1,837,958,108 | 1,837,958,108 | 1,787,819,923 | 1,787,819,923 | ||
Commodity stocks | 698,652,646 | 18,534,497 | 680,118,149 | 894,187,725 | 24,683,226 | 869,504,499 |
Total | 2,625,315,933 | 18,534,497 | 2,606,781,436 | 2,749,274,683 | 24,683,226 | 2,724,591,457 |
7.7.2 Inventory depreciation provision
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
Accrual | Other | Transfer back or write-off | Other | |||
Raw materials | ||||||
Goods in process | ||||||
Commodity stocks | 24,683,226 | 6,148,729 | 18,534,497 | |||
Total | 24,683,226 | 6,148,729 | 18,534,497 |
7.8 Other current assets
Unit: Yuan
Item | Ending balance | Beginning balance |
Prepaid corporate income tax | 70,523,939 | 24,077,323 |
Deductible input tax | 229,478,097 | 233,087,707 |
Rent to be amortized | 416,865 | 1,511,366 |
Total | 300,418,901 | 258,676,396 |
7.9 Other non-current financial assets
Unit: Yuan
Item | Ending balance | Beginning balance |
Other | 515,922 | |
Total | 515,922 |
7.10 Investment real estate
7.10.1 Investment real estate by cost measurement method
Unit: Yuan
Item | Houses and buildings | Land use right | Construction in progress | Total |
Ⅰ Original book value | ||||
1. Beginning balance | 70,954,045 | 70,954,045 | ||
2. Increase in this period | ||||
2.1 Outsourcing |
Item | Houses and buildings | Land use right | Construction in progress | Total |
2.2 Transfer in from inventories\fixed assets\ construction in progress | ||||
2.3 Business merger increase | ||||
3. Decrease in this period | ||||
3.1 Disposal | ||||
3.2 Other transfer out | ||||
4. Ending balance | 70,954,045 | 70,954,045 | ||
Ⅱ Accumulated depreciation & accumulated amortization | ||||
1. Beginning balance | 39,381,556 | 39,381,556 | ||
2. Increase in this period | 1,012,019 | 1,012,019 | ||
2.1 Accrual or amortization | 1,012,019 | 1,012,019 | ||
3. Decrease in this period | ||||
3.1 Disposal | ||||
3.2 Other transfer out | ||||
4. Ending balance | 40,393,575 | 40,393,575 | ||
Ⅲ Impairment provision | ||||
1. Beginning balance | ||||
2. Increase in this period | ||||
2.1 Accrual | ||||
3. Decrease in this period | ||||
3.1 Disposal | ||||
3.2 Other transfer out | ||||
4. Ending balance | ||||
Ⅳ Book value | ||||
1. Ending book value | 30,560,470 | 30,560,470 | ||
2. Beginning book value | 31,572,489 | 31,572,489 |
7.11 Fixed assets
Unit: Yuan
Item | Ending balance | Beginning balance |
Fixed assets | 5,684,612,653 | 5,749,731,667 |
Disposal of fixed assets | ||
Total | 5,684,612,653 | 5,749,731,667 |
7.11.1 Particulars of fixed assets
Unit: Yuan
Item | Houses and buildings | Machinery equipment | Construction tools | Total |
Ⅰ Original book value: | ||||
1. Beginning balance | 4,761,426,425 | 2,665,798,814 | 26,580,639 | 7,453,805,878 |
2. Increase in this period | 33,949,084 | 48,642,164 | 1,281,845 | 83,873,093 |
2.1 Acquisition | 4,174,052 | 13,254,325 | 1,281,845 | 18,710,222 |
Item | Houses and buildings | Machinery equipment | Construction tools | Total |
2.2 Transfer in from construction in progress | 29,775,032 | 35,387,839 | 65,162,871 | |
2.3 Business merger increase | ||||
3. Decrease in this period | 5,422,920 | 2,867,114 | 456,453 | 8,746,487 |
3.1 Disposal or retirement | 5,422,920 | 2,867,114 | 456,453 | 8,746,487 |
4. Ending balance | 4,789,952,589 | 2,711,573,864 | 27,406,031 | 7,528,932,484 |
Ⅱ Accumulated depreciation | ||||
1. Beginning balance | 621,266,769 | 1,062,064,237 | 20,743,205 | 1,704,074,211 |
2. Increase in this period | 67,239,979 | 79,376,506 | 1,071,000 | 147,687,485 |
2.1 Accrual | 67,239,979 | 79,376,506 | 1,071,000 | 147,687,485 |
3. Decrease in this period | 4,489,447 | 2,518,788 | 433,630 | 7,441,865 |
3.1 Disposal or retirement | 4,489,447 | 2,518,788 | 433,630 | 7,441,865 |
4. Ending balance | 684,017,301 | 1,138,921,955 | 21,380,575 | 1,844,319,831 |
Ⅲ Impairment provision | ||||
1. Beginning balance | ||||
2. Increase in this period | ||||
2.1 Accrual | ||||
3. Decrease in this period | ||||
3.1 Disposal or retirement | ||||
4. Ending balance | ||||
Ⅳ Book value | ||||
1. Ending book value | 4,105,935,288 | 1,572,651,909 | 6,025,456 | 5,684,612,653 |
2. Beginning book value | 4,140,159,656 | 1,603,734,577 | 5,837,434 | 5,749,731,667 |
As at June 30, 2019, the net value of the fixed assets with ownership restrictions was RMB353,013,613 Yuan (December 31, 2018: RMB 412,006,421 Yuan). Please refer to Note 7.51for details.
7.11.2 Particulars of temporarily idle fixed assets
Unit: Yuan
Item | Original book value | Accumulated depreciation | Depreciation reserves | Book value | Remarks |
Temporarily idle fixed assets | 124,758,075 | 67,762,891 | 56,995,184 |
7.11.3 Particulars of fixed assets under finance leases
Nil
7.11.4 Fixed assets under operating lease
Unit: Yuan
Item | Ending book value |
Machinery equipment | 115,720 |
7.11.5 Particulars of fixed assets without property certificates
Unit: Yuan
Item | Book value | Reason for not receiving the property certificate |
Industrial Production Center of the R&D Company | 1,733,732,977 | Under transaction |
Dormitory Building, Main Building and Reception Building of Chang’an Chateau | 280,709,011 | Under transaction |
European Town, Main Building and Service Building of Beijing Chateau | 184,687,307 | Under transaction |
Main Building of Yantai Chateau Changyu Tinlot | 81,685,892 | Under transaction |
Fermentation Workshop and Wine Storage Workshop of Xinjiang Tianzhu | 17,499,421 | Under transaction |
Office Building and Packaging Workshop of Icewine Valley | 9,044,465 | Under transaction |
Wine-making Workshop of Changyu (Jingyang) | 4,017,018 | Under transaction |
Office Building, Laboratory Building and Workshop of Fermentation Center | 3,572,175 | Under transaction |
Finished Goods Warehouse and Workshop of Kylin Packaging | 2,351,511 | Under transaction |
Office Building of Guangxi Guilin Office and Office Building of Shanxi Datong Office | 1,110,076 | Under transaction |
Total | 2,318,409,853 | Under transaction |
7.12 Construction in progress
7.12.1 Particulars of construction in progress
Item | Ending balance | Beginning balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Research, Development & Manufacture Center (“Changyu Wine City Complex”) | 672,975,492 | 672,975,492 | 608,553,617 | 608,553,617 | ||
Construction Project of Chang’an Chateau | 17,537,828 | 17,537,828 | 39,793,893 | 39,793,893 | ||
Construction Project of Ningxia Chateau | 47,371,353 | 47,371,353 | 47,163,863 | 47,163,863 | ||
Construction Project of Shihezi Chateau | 379,517 | 379,517 | 23,664,124 | 23,664,124 | ||
Construction Project of Sales Company | 19,145,181 | 19,145,181 | 17,985,882 | 17,985,882 | ||
Construction Projects of Other Companies | 32,463,002 | 32,463,002 | 22,135,212 | 22,135,212 | ||
Total | 789,872,373 | 789,872,373 | 759,296,591 | 759,296,591 |
7.12.2 Changes of major construction in progress in this period
Unit: Yuan
Item | Budget | Beginning balance | Increase in this period | Transferred to fixed assets in this period | Other decrease in this period | Ending balance | Proportion of accumulative project input in budget | Accumulative capitalized amount of interest | Including: capitalized amount of interest in this period | Capitalization ratio of interest in this period | Capital source |
Changyu Wine City Complex | 4,505,780,000 | 608,553,617 | 105,008,609 | 30,903,286 | 9,683,448 | 672,975,492 | 76.60% | 16,954,039 | 1.20% and 4.3% | Loans form financial institutions and self-raised funds | |
Construction Project of Chang’an Chateau | 620,740,000 | 39,793,893 | 7,523,270 | 29,779,335 | 17,537,828 | 109.90% | Self-raised funds | ||||
Construction Project of Shihezi Chateau | 780,000,000 | 23,664,124 | 4,615,627 | 138,172 | 27,762,062 | 379,517 | 96.90% | Self-raised funds | |||
Construction Project of Sales Company | 161,350,000 | 17,985,882 | 1,262,622 | 103,323 | 19,145,181 | 98.50% | Self-raised funds | ||||
Construction Project of Ningxia Chateau | 41,415,000 | 47,163,863 | 207,490 | 47,371,353 | 102.60% | Self-raised funds | |||||
Total | 6,109,285,000 | 737,161,379 | 118,617,618 | 60,924,116 | 37,445,510 | 757,409,371 | -- | -- | 16,954,039 | -- |
As at June 30, 2019, there was no indication for impairment of construction in progress of the Group, so no provision for impairment was made.
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.13 Productive biological assets
7.13.1 Productive biological assets by cost measurement method
Unit: Yuan
Item | Plantation | Total | |
Immature | Mature | ||
Ⅰ Original book value | |||
1. Beginning balance | 13,837,608 | 235,246,042 | 249,083,650 |
2. Increase in this period | -4,798,454 | 9,593,745 | 4,795,291 |
2.1 Outsourcing | |||
2.2 Self cultivation | 2,388,310 | 2,406,981 | 4,795,291 |
The immature turn to the mature | -7,186,764 | 7,186,764 | |
3. Decrease in this period | |||
3.1 Disposal | |||
3.2 Other | |||
4. Ending balance | 9,039,154 | 244,839,787 | 253,878,941 |
Ⅱ Accumulated depreciation | |||
1. Beginning balance | 39,817,277 | 39,817,277 | |
2. Increase in this period | 6,448,225 | 6,448,225 | |
2.1 Accrual | 6,448,225 | 6,448,225 | |
3. Decrease in this period | |||
3.1 Disposal | |||
3.2 Other | |||
4. Ending balance | 46,265,502 | 46,265,502 | |
Ⅲ Impairment provision | |||
1. Beginning balance | |||
2. Increase in this period | |||
2.1 Accrual | |||
3. Decrease in this period | |||
3.1 Disposal | |||
3.2 Other | |||
4. Ending balance | |||
Ⅳ Book value | |||
1. Ending book value | 9,039,154 | 198,574,285 | 207,613,439 |
2. Beginning book value | 13,837,608 | 195,428,765 | 209,266,373 |
As at June 30, 2019, no ownership of the biological assets was restricted.
As at June 30, 2019, there was no indication for impairment of biological assets of the Group, so noprovision was made.
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.14 Intangible assets
7.14.1 Particulars of intangible assets
Unit: Yuan
Item | Land use right | Software use right | Trademark | Total |
Ⅰ Original book value | ||||
1. Beginning balance | 528,252,911 | 75,822,057 | 170,068,735 | 774,143,703 |
2. Increase in this period | 16,176 | 107,993 | 124,169 | |
2.1 Acquisition | 16,176 | 107,993 | 124,169 | |
2.2 Internal R&D | ||||
2.3 Business merger increase | ||||
3. Decrease in this period | ||||
3.1 Disposal | ||||
4. Ending balance | 528,269,087 | 75,930,050 | 170,068,735 | 774,267,872 |
Ⅱ Accumulated amortization | ||||
1. Beginning balance | 78,070,910 | 26,722,815 | 13,876,519 | 118,670,244 |
2. Increase in this period | 5,231,260 | 3,185,493 | 21,989 | 8,438,742 |
2.1 Accrual | 5,231,260 | 3,185,493 | 21,989 | 8,438,742 |
3. Decrease in this period | ||||
3.1 Disposal | ||||
4. Ending balance | 83,302,170 | 29,908,308 | 13,898,508 | 127,108,986 |
Ⅲ Impairment provision | ||||
1. Beginning balance | ||||
2. Increase in this period | ||||
2.1 Accrual | ||||
3. Decrease in this period | ||||
3.1 Disposal | ||||
4. Ending balance | ||||
Ⅳ Book value | ||||
1. Ending book value | 444,966,917 | 46,021,742 | 156,170,227 | 647,158,886 |
2. Beginning book value | 450,182,001 | 49,099,242 | 156,192,216 | 655,473,459 |
As at June 30, 2019, the net value of the intangible assets with ownership restrictions wasRMB 215,282,924 Yuan (December 31, 2018: RMB 218,070,414 Yuan). Please refer toNote 7.51 for details.
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.14.2 Particulars of land use right of that not receiving the property certificate
Nil
7.15 Goodwill
Unit: Yuan
Name of the invested unit or matter forming goodwill | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
Formed by business merger | Other | Disposal | Other | |||
Etablissements Roullet Fransac (“Roullet Fransac”) | 13,112,525 | 13,112,525 | ||||
Dicot Partners, S.L (“Atrio Group”) | 92,391,901 | 92,391,901 | ||||
Societe Civile Argricole Du Chateau De Mirefleurs (“Mirefleurs”) | 15,761,440 | 15,761,440 | ||||
Indomita Wine Company Chile, SpA | 6,870,115 | 6,870,115 | ||||
Kilikanoon Estate, Australia | 37,063,130 | 37,063,130 | ||||
Total | 165,199,111 | 165,199,111 |
7.16 Long-term unamortized expenses
Unit: Yuan
Item | Beginning balance | Increase in this period | Amortization in this period | Other decrease | Ending balance |
Land lease fees | 54,217,763 | 1,073,811 | 53,143,952 | ||
Land acquisition fees | 43,427,739 | 215,293 | 43,212,446 | ||
Afforestation fees | 141,224,472 | 9,683,449 | 4,615,467 | 146,292,454 | |
Renovation costs | 775,647 | 27,762,062 | 476,300 | 28,061,409 | |
Other | 4,994,795 | 1,134,446 | 281,791 | 5,847,450 | |
Total | 244,640,416 | 38,579,957 | 6,662,662 | 276,557,711 |
Remarks: The amount transferred to long-term unamortized expenses from construction inprogress was RMB 38,234,356 Yuan.
7.17 Deferred income tax assets/liabilities
7.17.1 Un-offset deferred income tax assets
Unit: Yuan
Item | Ending Balance | Beginning Balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Unrealized profits from inter-company transactions | 383,079,453 | 95,769,863 | 602,476,583 | 150,619,145 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item | Ending Balance | Beginning Balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Unpaid bonus | 107,118,804 | 26,808,863 | 141,808,257 | 35,485,814 |
Dismission welfare | 21,108,526 | 5,277,132 | 26,186,243 | 6,546,561 |
Asset impairment provision | 23,672,354 | 5,918,088 | 24,683,226 | 6,170,807 |
Deductible loss | 326,241,084 | 83,564,280 | 262,937,999 | 67,566,387 |
Deferred income | 78,596,149 | 17,132,928 | 86,227,293 | 18,868,963 |
Asset valuation impairment | 649,811 | 175,449 | 661,415 | 178,582 |
Total | 940,466,181 | 234,646,603 | 1,144,981,016 | 285,436,259 |
7.17.2 Un-offset deferred income tax liabilities
Unit: Yuan
Item | Ending Balance | Beginning Balance | ||
Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
Assets appraisal appreciation in business merger under non-common control | 69,392,888 | 18,629,612 | 81,338,130 | 22,010,647 |
Total | 69,392,888 | 18,629,612 | 81,338,130 | 22,010,647 |
7.17.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
Item | Ending balance | Beginning balance |
Deductable temporary difference | ||
Deductible loss | 157,722,738 | 171,430,831 |
Total | 157,722,738 | 171,430,831 |
7.17.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year | Ending sum | Beginning sum | Remark |
2020 | 45,960,766 | 45,960,766 | |
2021 | 82,685,213 | 82,685,213 | |
2022 | 14,362,787 | 14,362,787 | |
2023 | 6,987,182 | 21,110,792 | |
2024 | 7,726,790 | ||
Total | 157,722,738 | 164,119,558 | -- |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.18 Short-term loans
7.18.1 Classification of short-term loans
Unit: Yuan
Item | Ending balance | Beginning balance |
Pledge loan | ||
Mortgage loan | 65,507,517 | 79,467,832 |
Guaranteed loan | 7,145,835 | 3,331,870 |
Fiduciary loan | 605,517,315 | 605,202,708 |
Total | 678,170,667 | 688,002,410 |
As at June 30, 2019, the mortgage loans referred to a loan of factoring business for accountsreceivable of EUR 3,982,860 (equivalent to RMB 31,134,017 Yuan) that Hacienda y VinedosMarques del Atrio, S.L.U. (“Marques del Atrio”) transacted in such banks as Banco deSabadell, S.A. (December 31, 2018: RMB 52,015,032 Yuan), a loan of USD 5,000,000(equivalent to RMB 34,373,500 Yuan) that Indomita Wine Company Chile, SpA borrowedfrom BBVA bank by mortgage of its fixed assets of CLP 2,931,854,000 (equivalent to RMB29,904,911 Yuan) (December 31, 2018: RMB 27,452,800 Yuan). The guaranteed loanreferred to a loan borrowed by the Company from Australia & New Zealand Banking with aguarantee for Kilikanoon Estate, Australia of AUD 1,483,893 (equivalent to RMB 7,145,835Yuan) (December 31, 2018: RMB 3,331,870 Yuan).
7.19 Accounts payable
7.19.1 List of accounts payable
Unit: Yuan
Item | Ending balance | Beginning balance |
Trade accounts payable | 539,459,878 | 713,572,881 |
Total | 539,459,878 | 713,572,881 |
7.19.2 Explanation of significant accounts payable aged more than one yearAs at June 30, 2019, there were no significant accounts payable aged more than one year.
7.20 Advances from customers
7.20.1 List of advances from customers
Unit: Yuan
Item | Ending sum | Beginning sum |
Advances from customers | 177,549,080 | 226,075,244 |
Total | 177,549,080 | 226,075,244 |
7.20.2 Advances from customers of significant amount aged more than one yearAs at June 30, 2019, the Company had no advances from customers of significant amount
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
aged more than one year.
7.21 Employee remunerations payable
7.21.1 List of employee remunerations payable
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
1. Short-term remuneration | 185,893,109 | 214,884,524 | 245,100,514 | 155,677,119 |
2. Post-employment welfare – defined contribution plan | 224,865 | 27,605,713 | 27,149,855 | 680,723 |
3. Dismission welfare | 26,186,243 | 1,310,247 | 6,387,964 | 21,108,526 |
4.Other welfare due within one year | ||||
Total | 212,304,217 | 243,800,484 | 278,638,333 | 177,466,368 |
7.21.2 List of short-term remunerations
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
1. Salaries, bonuses, allowances and subsidies | 187,685,990 | 188,388,623 | 215,640,569 | 160,434,044 |
2. Staff welfare | 3,014,288 | 4,969,229 | 7,875,107 | 108,410 |
3. Social insurance charges | 461,095 | 14,314,931 | 14,435,562 | 340,464 |
Including: Medical insurance | 460,440 | 12,510,735 | 12,656,526 | 314,649 |
Injury insurance | 655 | 914,251 | 889,091 | 25,815 |
Maternity insurance | 889,945 | 889,945 | ||
4. Housing fund | 52,510 | 6,147,006 | 6,191,272 | 8,244 |
5. Union fee and staff education fee | 1,914,079 | 1,064,735 | 1,033,635 | 1,945,179 |
6. Short-term compensated absences | ||||
7. Short-term profit-sharing plan | ||||
Minus: Those divided into non-current assets | 7,234,853 | 75,631 | 7,159,222 | |
Total | 185,893,109 | 214,884,524 | 245,100,514 | 155,677,119 |
7.21.3 List of defined contribution plan
Unit: Yuan
Item | Beginning balance | Increase | Decrease | Ending balance |
1. Basic endowment insurance | 224,533 | 26,914,033 | 26,457,843 | 680,723 |
2. Unemployment insurance | 332 | 691,680 | 692,012 | |
3. Enterprise annuity payment | ||||
Total | 224,865 | 27,605,713 | 27,149,855 | 680,723 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.21.4 Dismission welfare
Unit: Yuan
Item | Beginning balance | Increase | Decrease | Ending balance |
1. Compensation for server of labor relation | 1,275,387 | 1,275,387 | - | |
2. Compensation for early retirement | 26,186,243 | 34,860 | 5,112,577 | 21,108,526 |
Total | 26,186,243 | 1,310,247 | 6,387,964 | 21,108,526 |
7.22 Taxes and dues payable
Unit: Yuan
Item | Ending balance | Beginning balance |
Value added tax | 28,114,274 | 36,442,868 |
Consumption tax | 9,089,447 | 28,636,646 |
Corporate income tax | 59,137,357 | 40,869,507 |
Individual income tax | 276,031 | 5,669,099 |
Urban maintenance and construction tax | 2,407,009 | 4,337,712 |
Property tax | 5,406,700 | 5,165,128 |
Urban land use tax | 2,255,344 | 2,476,527 |
Other | 2,314,640 | 5,315,303 |
Total | 109,000,802 | 128,912,790 |
7.23 Other payables
Unit: Yuan
Item | Ending balance | Beginning balance |
Interest payable | 2,669,667 | 712,826 |
Dividends payable | 412,646,375 | |
Other payables | 562,350,965 | 607,767,064 |
Total | 977,667,007 | 608,479,890 |
Remarks: Other payables in the above list refer to the payables after deducting interestpayable and dividends payable.
7.23.1 Interest payable
Unit: Yuan
Item | Ending balance | Beginning balance |
Interest of long-term loans with interest paid by installment and principal paid on maturity | ||
Interest of corporate bonds | ||
Interest payable of short-term loans | 2,669,667 | 712,826 |
Interest of preferred shares\ perpetual bonds divided into financial liabilities | ||
Other | ||
Total | 2,669,667 | 712,826 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.23.2 Dividends payable
Unit: Yuan
Item | Ending balance | Beginning balance |
Ordinary stock dividends | 411,278,400 | |
Preferred stock dividends/sustainable debt dividends divided into equity instruments | ||
Other | 1,367,975.00 | |
Total | 412,646,375.00 |
7.23.3 Other payables
7.23.3.1 Other payables listed by nature
Unit: Yuan
Item | Ending balance | Beginning balance |
Dealer’s deposit payable | 166,741,693 | 159,191,138 |
Equipment purchase and construction costs payable | 93,902,789 | 152,825,734 |
Transportation charges payable | 15,579,562 | 38,867,725 |
Trademark use fees payable for Changyu Group Company | 78,414,978 | |
Advertisement marketing expenses payable | 209,606,196 | 96,429,861 |
Employee cash deposit | 869,282 | 2,806,766 |
Supplier’s deposit payable | 18,732,029 | 15,901,210 |
Contracting fees payable | 19,130,850 | 27,070,584 |
Other | 37,788,564 | 36,259,068 |
Total | 562,350,965 | 607,767,064 |
7.23.3.2 Other significant accounts payable aged more than one year
Unit: Yuan
Item | Ending balance | Cause of unpayment or carry-over |
Beijing Qinglang Ecological Agriculture Technology Development Co., Ltd. (“Beijing Qinglang”) | 3,513,506 | The contracting fees haven’t been settled |
VASF Company | 4,878,866 | The contracting fees haven’t been settled |
Total | 8,392,372 | -- |
7.24 Non-current liabilities due within one year
Unit: Yuan
Item | Ending balance | Beginning balance |
Long-term loans due within one year | 146,362,314 | 118,940,788 |
Bonds payable due within one year | ||
Long-term accounts payable due within one year | 34,000,000 | 34,000,000 |
Lease liabilities due within one |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
year | ||
Total | 180,362,314 | 152,940,788 |
7.25 Other current liabilities
Unit: Yuan
Item | Ending balance | Beginning balance |
Short-term bonds payable | ||
Refunds payable | ||
Deferred income | 14,545,254 | 15,860,254 |
Total | 14,545,254 | 15,860,254 |
7.26 Long-term loans
7.26.1 Classification of long-term loans
Unit: Yuan
Item | Ending balance | Beginning balance |
Pledge loan | ||
Mortgage loan | 3,529,655 | 3,924,916 |
Guaranteed loan | 98,156,000 | 110,750,000 |
Fiduciary loan | 64,263,595 | 41,805,746 |
Total | 165,949,250 | 156,480,662 |
Description of the classification of long-term loans:
Unit: Yuan
Item | Ending balance | Long-term loan due within one year | Long-term loan due over one year |
Pledge loan | |||
Mortgage loan | 6,616,377 | 3,086,722 | 3,529,655 |
Guaranteed loan | 116,906,000 | 18,750,000 | 98,156,000 |
Fiduciary loan | 188,789,187 | 124,525,592 | 64,263,595 |
Total | 312,311,564 | 146,362,314 | 165,949,250 |
As at June 30, 2019, the guaranteed loan referred to the long-term loan of RMB 68,750,000Yuan borrowed by the Company for the R&D Company by means of credit guarantee(December 31, 2018: 81,250,000 Yuan), which was borrowed from Australia & New ZealandBanking by the Company for Kilikanoon Estate, Australia of AUD 10,000,000 (equivalent toRMB 48,156,000 Yuan) (December 31, 2018: 48,250,000 Yuan). The mortgage loan referredto the loan of EUR 678,868 (equivalent to RMB 5,306,710 Yuan) borrowed from PopularEspa?ol by Marques del Atrio by mortgaging its fixed assets of EUR 2,900,925 (equivalent toRMB 22,676,531 Yuan) (December 31, 2018: RMB 6,749,944 Yuan). Kilikanoon Estate,Australia borrowed a loan of AUD 271,963 (equivalent to RMB 1,309,667 Yuan) by pledgingits fixed assets of AUD 503,163 (equivalent to RMB 2,423,032 Yuan) from NAB bank(December 31, 2018: RMB 48,250,000 Yuan).
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.27 Long-term accounts payable
7.27.1 Long-term accounts payable listed by nature
Unit: Yuan
Item | Ending balance | Beginning balance |
China Agricultural Development Key Construction Fund | 201,000,000 | 225,000,000 |
Total | 201,000,000 | 225,000,000 |
In 2016, Agricultural Development Fund invested RMB 305,000,000 Yuan in the Research,Development & Manufacture Company, accounting for 37.9% of the registered capital.According to the investment agreement, it is agreed that Agricultural Development Fund willtake back the investment fund in ten years and obtain fixed income according to year, whichis 1.2% of the remaining principal. Except for the above fixed income, the AgriculturalDevelopment Fund shall not enjoy other profits of the Research, Development & ManufactureCompany or bear the losses of the Research, Development & Manufacture Company.Accordingly, the investment of the Agricultural Development Fund in the Research,Development & Manufacture Company is equity investment nominally, which is debtinvestment (finance discount interest loan) in deed. The Group included the investment of theAgricultural Development Fund in long-term accounts payable measured by amortized cost.From January to June 2019, the Group gave back the principal of RMB 24,000,000 Yuan.Refer to Note 7.51 for details of mortgaged and pledged assets.
Unit: Yuan
Balance of long-term accounts payable | Long-term accounts payable due within one year | Long-term accounts payable due in one year later |
235,000,000 | 34,000,000 | 201,000,000 |
7.28 Deferred income
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance | Forming reason |
Governmental subsidy | 86,227,293 | 4,465,398 | 12,096,542 | 78,596,149 | |
Minus: Those included in current liabilities | 15,860,254 | 1,315,000 | 14,545,254 | ||
Non-current liabilities | 70,367,039 | 4,465,398 | 10,781,542 | 64,050,895 | -- |
Projects related to governmental subsidy
Unit: Yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item of liabilities | Beginning balance | Amount of subsidy newly increased in this period | Amount included in non-operating revenue in this period | Amount included in other income in this period | Amount offset the cost expenses | Other changes | Ending balance | Related to assets/income |
Grape bulk wine brewing project | 3,304,500 | 717,450 | 2,587,050 | Related to assets | ||||
Reward for investment in fixed assets of Chateau Shihezi project | 6,996,600 | 1,140,000 | 5,856,600 | Related to assets | ||||
Industrial revitalization and technical transformation project in Xinjiang | 15,642,000 | 711,000 | 14,931,000 | Related to assets | ||||
Special subsidy for supporting infrastructure | 4,240,000 | 530,000 | 3,710,000 | Related to assets | ||||
Tourism development fund subsidy project | 500,000 | 500,000 | Related to income | |||||
Construction project of grape brewing production capacity (Huanren) | 3,200,000 | 200,000 | 3,000,000 | Related to assets | ||||
Electronic traceability system project of wine | 2,525,257 | 333,527 | 2,191,730 | Related to assets | ||||
Wine industry development project | 558,000 | 93,000 | 465,000 | Related to assets | ||||
Peninsula blue economic zone construction project | 6,000,000 | 1,000,000 | 5,000,000 | Related to assets | ||||
Technical transformation project of information-based system construction engineering | 2,900,000 | 290,000 | 2,610,000 | Related to assets | ||||
Cross-border e-commerce project | 880,256 | 67,114 | 813,142 | Related to income | ||||
Fund for water pollution treatment project | 206,530 | 56,801 | 149,729 | Related to income | ||||
Infrastructure construction project | 1,718,750 | 62,500 | 1,656,250 | Related to assets | ||||
Supporting fund for industrial development | 32,800,000 | 2,050,000 | 30,750,000 | Related to assets | ||||
Subsidy for economic and energy-saving technical transformation project | 1,026,400 | 64,150 | 962,250 | Related to assets | ||||
Special fund for efficient water-saving irrigation project | 1,639,000 | 81,000 | 1,558,000 | Related to assets | ||||
Guiding fund for the development of service industry | 2,000,000 | 4,200,000 | 4,700,000 | 1,500,000 | Related to income | |||
Subsidy for boiler | 90,000 | 90,000 | Related to income |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item of liabilities | Beginning balance | Amount of subsidy newly increased in this period | Amount included in non-operating revenue in this period | Amount included in other income in this period | Amount offset the cost expenses | Other changes | Ending balance | Related to assets/income |
renovation and demolition | ||||||||
Subsidy for mechanical development | 265,398 | 265,398 | Related to assets | |||||
Total | 86,227,293 | 4,465,398 | 12,096,542 | 78,596,149 | ||||
Minus: Those included in current liabilities | 15,860,254 | 1,315,000 | 14,545,254 | |||||
Non-current liabilities | 70,367,039 | 4,465,398 | 10,781,542 | 64,050,895 |
7.29 Other non-current liabilities
Unit: Yuan
Item | Ending balance | Beginning balance |
Employee remunerations payable | 7,159,222 | 7,234,853 |
Total | 7,159,222 | 7,234,853 |
As at June 30, 2019, the employee remunerations payable referred to the job security depositdeducted from the year-end bonus of the employees higher than sales manager of theCompany in proportion, which will be paid from 2020 to 2022 as predicted.
7.30 Share capital
Unit: Yuan
Beginning balance | Increase or decrease (+,-) in this period | Ending balance | |||||
Newly issued shares | Allocated shares | Share transferred from accumulation fund | Other | Subtotal | |||
Total shares | 685,464,000 | 685,464,000 |
7.31 Capital reserves
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
Capital premium (Share capital premium) | 560,038,853 | 560,038,853 | ||
Other capital reserves | 5,916,588 | 5,916,588 | ||
Total | 565,955,441 | 565,955,441 |
7.32 Other comprehensive income
Unit: Yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item | Beginning balance | Amount incurred in this period | Ending balance | ||||
Amount incurred before income tax in this period | Minus: amount included in other comprehensive income before and transferred to profit or loss in this period | Minus: income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | |||
1. Other comprehensive income not to be reclassified into profit and loss later | |||||||
Including: change in net liabilities and net assets from recalculated defined benefit plan | |||||||
Share enjoyed in other comprehensive income not to be reclassified into profit and loss in invested unit under equity law | |||||||
2. Other comprehensive income to be reclassified into profit and loss later | 2,965,377 | -4,657,291 | -3,060,721 | -1,596,570 | -95,344 | ||
Including: share enjoyed in other comprehensive income to be reclassified into profit and loss in invested unit under equity law | |||||||
Profit and loss from changes in fair value of financial assets for sale | |||||||
Profit and loss from reclassification of held-to-maturity investment into fair value of financial assets for sale | |||||||
Effective part of profit and loss of cash-flow hedge | |||||||
Difference in translation of Foreign Currency Financial Statement | 2,965,377 | -4,657,291 | -3,060,721 | -1,596,570 | -95,344 | ||
Total other comprehensive income | 2,965,377 | -4,657,291 | -3,060,721 | -1,596,570 | -95,344 |
7.33 Surplus reserves
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
Legal surplus reserves | 342,732,000 | 342,732,000 | ||
Free surplus reserves | ||||
Reserve fund | ||||
Enterprise expansion fund | ||||
Other | ||||
Total | 342,732,000 | 342,732,000 |
7.34 Undistributed profit
Unit: Yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item | Ending balance | Beginning balance |
Undistributed profit at the end of prior period before adjustment | 8,008,982,547 | 7,309,081,618 |
Total Undistributed profit at the beginning of the period before adjustment (increase listed with+ , and decrease listed with -) | -3,278,942 | |
Undistributed profit at the beginning of the period after adjustment | 8,005,703,605 | 7,309,081,618 |
Plus: Net profit for owner of the parent company | 603,403,789 | 1,042,632,929 |
Minus: Drawn legal surplus | ||
Drawn free surplus | ||
Drawn common risk provision | ||
Common dividend payable | 411,278,400 | 342,732,000 |
Common dividend transferred to share capital | ||
Undistributed profit at the end of period | 8,197,828,994 | 8,008,982,547 |
7.35 Operating income and operating cost
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period | ||
Income | Cost | Income | Cost | |
Main business | 2,541,459,605 | 927,958,197 | 2,818,814,912 | 969,407,949 |
Other business | 16,815,180 | 8,294,028 | 9,415,152 | 5,149,343 |
Total | 2,558,274,785 | 936,252,225 | 2,828,230,064 | 974,557,292 |
7.36 Taxes and surcharges
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Consumption tax | 68,699,658 | 97,343,463 |
Urban maintenance and construction tax | 18,763,626 | 23,778,056 |
Education surcharges | 13,670,717 | 17,417,976 |
Building tax | 14,184,915 | 16,878,556 |
Land use tax | 5,478,045 | 6,013,248 |
Stamp duty | 1,504,356 | 2,247,814 |
Other | 1,249,531 | 1,597,138 |
Total | 123,550,848 | 165,276,251 |
7.37 Selling expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Marketing expenses | 268,185,487 | 326,942,076 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Employee remunerations | 130,725,779 | 139,247,494 |
Transportation expenses | 53,735,626 | 67,177,736 |
Trademark use fees | 43,363,867 | |
Storage and lease expenses | 24,274,917 | 19,857,616 |
Depreciation expenses | 20,476,637 | 21,735,895 |
Advertisement expenses | 26,920,257 | 23,574,432 |
Conference expenses | 8,945,999 | 9,319,883 |
Design & production expenses | 2,365,761 | 2,457,300 |
Service charges | 11,484,614 | 12,459,237 |
Travel expenses | 11,822,548 | 10,886,711 |
Water, electricity and gas charges | 7,697,325 | 7,166,936 |
Office & postage costs | 2,801,706 | 2,349,806 |
Packing expenses | 3,971,486 | 3,873,287 |
Public security & clean-keeping expenses | 2,214,479 | 2,336,546 |
Business entertainment expenses | 1,763,307 | 1,995,516 |
Other | 14,584,873 | 15,914,695 |
Total | 591,970,801 | 710,659,033 |
7.38 Management expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Employee remunerations | 62,572,295 | 60,660,238 |
Depreciation expenses | 31,887,697 | 35,410,914 |
Contracting expenses | 7,178,106 | 7,178,106 |
Repair expenses | 8,253,897 | 7,076,148 |
Office expenses | 10,177,651 | 10,977,189 |
Amortization expenses | 7,677,849 | 9,520,182 |
Afforestation fees | 7,682,946 | 6,493,556 |
Safe production costs | 2,357,016 | 2,422,526 |
Rental expenses | 4,766,202 | 5,061,778 |
Business entertainment expenses | 2,631,383 | 2,815,060 |
Public security & clean-keeping expenses | 3,356,435 | 3,953,646 |
Travel expenses | 2,971,468 | 2,139,939 |
Other | 4,039,367 | 4,255,600 |
Total | 155,552,312 | 157,964,882 |
7.39 R&D expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
R&D expenses | 2,706,811 | 2,127,006 |
Total | 2,706,811 | 2,127,006 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.40 Financial expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Interest expenditure | 9,812,560 | 18,739,528 |
Minus: Interest income | 4,606,417 | 7,245,870 |
Plus: Commission charges | 1,271,831 | 3,005,483 |
Exchange gain or loss | 2,311,609 | -1,413,199 |
Total | 8,789,583 | 13,085,942 |
7.41 Other income
Unit: Yuan
Source of other income | Amount incurred in this period | Amount incurred in prior period |
Supporting fund for industrial development | 2,050,000 | 2,050,000 |
Industrial revitalization and technical transformation project in Ningxia | 1,086,000 | |
Reward for investment in fixed assets | 1,140,000 | 1,140,000 |
Special fund for construction of peninsula blue economic zone | 1,000,000 | 1,000,000 |
Other | 3,082,627 | 4,012,100 |
Special fund for supporting corporate development | 51,633,350 | 15,011,673 |
Other | 5,305,915 | 13,683,105 |
Total | 64,211,892 | 37,982,878 |
7.42 Loss on impairment of credit
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Loss on bad debts of accounts receivable | -765,935 | |
Total | -765,935 |
7.43 Loss on impairment of assets
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
1. Loss on bad debts | ||
2. Inventory falling price loss | 6,148,729 | 4,730,948 |
3. Loss on impairment of available-for-sale financial assets | ||
4. Loss on impairment of held-to maturity investment | ||
5. Loss on impairment of long-term equity investment | ||
6. Loss on impairment of investment real estate | ||
7. Loss on impairment of fixed assets | ||
8. Loss on impairment of engineering materials | ||
9. Loss on impairment of construction in progress |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item | Amount incurred in this period | Amount incurred in prior period |
10. Loss on impairment of productive biological assets | ||
11. Loss on impairment of oil and gas assets | ||
12. Loss on impairment of intangible assets | ||
13. Loss on impairment of goodwill | ||
14. Other | ||
Total | 6,148,729 | 4,730,948 |
7.44 Income from asset disposal
Unit: Yuan
Source of income from asset disposal | Amount incurred in this period | Amount incurred in prior period |
Income from disposal of fixed assets | 1,138 | 93,958 |
Total | 1,138 | 93,958 |
7.45 Non-operating income
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period | Amount included in the current non-recurring profits/losses |
Gains on debt recombination | |||
Gains on exchange of non-monetary assets | |||
Grains on donations | |||
Governmental subsidy | |||
Other | 3,575,914 | 2,006,392 | 3,575,914 |
Total | 3,575,914 | 2,006,392 | 3,575,914 |
7.46 Non-operating expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period | Amount included in the current non-recurring profits/losses |
Loss on debt recombination | |||
Loss on exchange of non-monetary assets | |||
Donation | |||
Fine, penalty and overdue fine paid due to violation of laws and administrative regulations | 10,811 | 1,187,713 | 10,811 |
Other | 153,239 | 204,649 | 153,239 |
Total | 164,050 | 1,392,362 | 164,050 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.47 Income tax expenses
7.47.1 List of income tax expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Current income tax expenses | 161,779,976 | 178,993,081 |
Deferred income tax expenses | 48,501,602 | 32,986,654 |
Total | 210,281,578 | 211,979,735 |
7.47.2 Adjustment process of accounting profit and income tax expenses
Unit: Yuan
Item | Amount incurred in this period |
Total profit | 812,459,893 |
Income tax expenses calculated according to the legal/applicable tax rate | 203,114,973 |
Influence of different tax rates applicable to subsidiary | -66,516 |
Influence of income tax in the term before adjustment | 3,082,397 |
Influence of nontaxable income | |
Influence of non-deductible costs, expenses and losses | 2,219,026 |
Influence of deductible loss from use of unconfirmed deferred income tax assets in prior period | |
Influence of deductible temporary difference or deductible loss of unconfirmed deferred income tax assets in this period | 1,931,698 |
Income tax expense | 210,281,578 |
7.48 Other comprehensive income
Refer to Note 7.32 for details.
7.49 Items of cash flow statement
7.49.1 Other cash received related to operating activities
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Governmental subsidy income | 62,580,748 | 33,687,978 |
Interest income | 2,835,438 | 3,302,294 |
Net amercement income | 1,225,511 | 1,609,829 |
Other | 1,143,923 | 3,742,920 |
Total | 67,785,620 | 42,343,021 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
7.49.2 Other cash paid related to operating activities
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Selling expenses | 348,849,996 | 387,846,396 |
Administrative expenses | 41,017,612 | 45,235,101 |
Other | 2,912,859 | 3,895,589 |
Total | 392,780,467 | 436,977,086 |
7.49.3 Other cash received related to financial activities
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Government subsidies received related to assets | 3,150,000 | |
Interest income from pledge of fixed deposits by the R&D Company | 371,431 | |
Long-term loans from pledge of fixed deposits by R&D Company | 20,000,000 | |
Total | 23,521,431 |
7.49.4 Other cash paid related to financial activities
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
R&D Company’ long-term loans pledged by fixed-term deposits | 20,000,000 | |
Total | 20,000,000 |
7.50 Supplementary information to cash flow statement
7.50.1 Supplementary information to cash flow statement
Unit: Yuan
Supplementary materials | Amount incurred in this period | Amount incurred in prior period |
1. Cash flows from operating activities calculated by adjusting the net profit: | -- | -- |
Net profit | 602,178,315 | 636,001,737 |
Plus: Provision for impairment of assets | -5,382,794 | -4,730,948 |
Depreciation of fixed assets, oil-and-gas assets and productive biological assets | 155,147,729 | 148,983,240 |
Depreciation of right-of-use assets | ||
Amortization of intangible assets | 8,438,742 | 11,567,301 |
Amortization of long-term deferred expenses | 6,662,662 | 8,117,444 |
Losses on disposal of fixed assets, intangible assets and other long-term assets (profit listed with “-”) | -1,138 | -93,958 |
Losses on retirement of fixed assets (profit listed with “-”) |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Supplementary materials | Amount incurred in this period | Amount incurred in prior period |
Losses on fair value change (profit listed with “-”) | ||
Financial costs (profit listed with “-”) | 13,987,879 | 15,048,678 |
Investment losses (profit listed with “-”) | ||
Decrease in deferred income tax assets (increase listed with “-”) | 50,789,656 | 37,133,223 |
Increase of deferred income tax liabilities (decrease listed with “-”) | -3,381,035 | -4,146,569 |
Decrease in inventories (increase listed with “-”) | 123,958,750 | 216,486,236 |
Decrease in operating receivables (increase listed with “-”) | -172,662,167 | -305,623,146 |
Increase in operating payable (decrease listed with “-”) | -280,260,593 | -205,989,766 |
Other | ||
Net cash flows from operating activities | 499,476,006 | 552,753,472 |
2. Significant investment and financing activities not involving cash deposit and withdrawal: | -- | -- |
Debt transferred into assets | ||
Convertible corporate bond due within 1 year | ||
Fixed assets under financing lease | ||
3. Net changes of cash and cash equivalent: | -- | -- |
Ending balance of cash | 1,573,727,077 | 1,428,670,462 |
Minus: Beginning balance of cash | 1,206,860,334 | 1,180,889,274 |
Plus: Ending balance of cash equivalent | ||
Minus: Beginning balance of cash equivalent | ||
Net increase amount of cash and cash equivalent | 366,866,743 | 247,781,188 |
7.50.2 Composition of cash and cash equivalents
Unit: Yuan
Item | Ending balance | Beginning balance |
1. Cash | 1,573,727,077 | 1,428,670,462 |
Including: Cash on hand | 70,198 | 151,228 |
Bank deposits on demand | 1,573,656,879 | 1,428,519,234 |
Other monetary capital on demand | ||
Due from central bank available for payment | ||
Due from the industry | ||
Inter-bank lending | ||
2. Cash equivalents | ||
Including: Bond investment due within three months | ||
3. Balance of cash and cash equivalents at the end of period | 1,573,727,077 | 1,428,670,462 |
Including: Restricted use of parent company or subsidiaries in the group |
7.51 Assets with ownership or use right restrictions
Unit: Yuan
Item | Ending book value | Reason for restriction |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Monetary capital | 94,466,626 | Loan deposit, L/C deposit, frozen balance of Alipay, housing fund and guaranty money for deposit in unit card |
Accounts receivable | 31,134,017 | Pledge of short-term loans |
Fixed assets | 353,013,613 | Pledge of short-term loans, long-term loans and long-term accounts payable |
Intangible assets | 215,282,924 | Pledge of long-term accounts payable |
Total | 693,897,180 | -- |
7.52 Foreign currency monetary items
7.52.1 Foreign currency monetary items
The foreign currency monetary items of the Group in domestic entities of China are listed asfollows:
Unit: Yuan
Item | Ending foreign currency balance | Translation exchange rate | Ending converted RMB balance |
Monetary capital | -- | -- | 46,815,034 |
Including: USD | 6,805,498 | 6.8747 | 46,785,757 |
EUR | 2,901 | 7.817 | 22,677 |
HKD | 7,503 | 0.8797 | 6,600 |
7.52.2 Overseas operational entities
The currency adopted by the overseas subsidiaries of the Company according to the maineconomic environment where the operation is located shall be chosen as the recordingcurrency. Marques del Atrio and Francs Champs Participations SAS (“Francs Champs”) bothuse euro as the recording currency, Indomita Wine Company Chile, SpA uses Chilean peso asthe recording currency, and Kilikanoon Estate, Australia uses Australian dollar as therecording currency. The foreign currency assets or liabilities of overseas subsidiaries are listedas follows:
Unit: Yuan
Item | Ending foreign currency balance | Translation exchange rate | Ending converted RMB balance |
Monetary capital | -- | -- | 3,553,711 |
Including: USD | 516,926 | 6.8747 | 3,553,711 |
EUR | |||
HKD | |||
Short-term loans | -- | -- | 75,621,700 |
Including: USD | 11,000,000 | 6.8747 | 75,621,700 |
EUR | |||
HKD |
8. Changes in scope of consolidation
Nil
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
9. Equity in other entities
9.1 Equity in the subsidiaries
9.1.1 Constitution of enterprise group
Name of subsidiary | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
Direct | Indirect | |||||
Xinjiang Tianzhu (a) | Shihezi City, Xinjiang Uygur Autonomous Region, China | Shihezi City, Xinjiang Uygur Autonomous Region, China | Manufacturing industry | 60% | Acquired from a business combination under non-common control | |
Roullet Fransac | Cognac, France | Cognac, France | Trading | 100% | Acquired from a business combination under non-common control | |
Mirefleurs | Bordeaux, France | Bordeaux, France | Trading | 100% | Acquired from a business combination under non-common control | |
Marques del Atrio | Navarra, Spain | Navarra, Spain | Sales | 75% | Acquired from a business combination under non-common control | |
Indomita Wine | Santiago, Chile | Santiago, Chile | Sales | 85% | Acquired by establishment or investment | |
Kilikanoon Estate, Australia | Adelaide, Australia | Adelaide, Australia | Sales | 80% | Acquired from a business combination under non-common control | |
Beijing Changyu Wine Marketing Co., Ltd. (“Beijing Marketing”) | Beijing City, China | Beijing City, China | Sales | 50% | 50% | Acquired by establishment or investment |
Yantai Kylin Packaging Co., Ltd. (“Kylin Packaging”) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Manufacturing industry | 100% | Acquired by establishment or investment | |
Yantai Chateau Changyu-Castel Co., Ltd. (“Chateau Changyu”) (b) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Manufacturing industry | 70% | Acquired by establishment or investment | |
Changyu (Jingyang) Pioneer Wine Co., Ltd. (“Jingyang Wine”) | Xianyang City, Shaanxi Province, China | Xianyang City, Shaanxi Province, China | Manufacturing industry | 100% | Acquired by establishment or investment | |
Yantai Changyu Pioneer Wine Sales Co., Ltd. (“Sales Company”) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Sales | 100% | Acquired by establishment or investment | |
Langfang Development Zone Castel-Changyu Wine Co., Ltd. (“Langfang Castel”) (c) | Langfang City, Hebei Province, China | Langfang City, Hebei Province, China | Manufacturing industry | 39% | 10% | Acquired by establishment or investment |
Changyu (Jingyang) Pioneer Wine Sales Co., Ltd. (“Jingyang Sales”) | Xianyang City, Shaanxi Province, China | Xianyang City, Shaanxi Province, China | Sales | 100% | Acquired by establishment or investment | |
Langfang Changyu Pioneer Wine Sales Co., Ltd. (“Langfang Sales”) | Langfang City, Hebei Province, China | Langfang City, Hebei Province, China | Sales | 100% | Acquired by establishment or investment | |
Shanghai Changyu Wine Marketing Co., Ltd. (“Shanghai Marketing”) | Shanghai City, China | Shanghai City, China | Sales | 30% | 70% | Acquired by establishment or investment |
Beijing Changyu AFIP Eco-agriculture Development Co., Ltd. (“Eco-agriculture Development”) | Miyun County, Beijing City, China | Miyun County, Beijing City, China | Sales | 100% | Acquired by establishment or investment | |
Beijing Changyu AFIP Wine Chateau Co., Ltd. (“Beijing Chateau”) (d) | Beijing City, China | Beijing City, China | Manufacturing industry | 90% | Acquired by establishment or investment | |
Yantai Changyu Wine Sales Co., Ltd. ( “Wine Sales”) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Sales | 90% | 10% | Acquired by establishment or investment |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Name of subsidiary | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
Direct | Indirect | |||||
Yantai Changyu Pioneer International Wine Co., Ltd. (“Pioneer International”) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Sales | 70% | 30% | Acquired by establishment or investment |
Hangzhou Changyu Wine Sales Co., Ltd. (“Hangzhou Changyu”) | Hangzhou City, Zhejiang Province, China | Hangzhou City, Zhejiang Province, China | Sales | 100% | Acquired by establishment or investment | |
Ningxia Growing | Yinchuan City, Ningxia Hui Autonomous Region, China | Yinchuan City, Ningxia Hui Autonomous Region, China | Planting industry | 100% | Acquired by establishment or investment | |
Huanren Changyu National Wine Sales Co., Ltd. (“National Wine”) | Benxi City, Liaoning Province, China | Benxi City, Liaoning Province, China | Sales | 100% | Acquired by establishment or investment | |
Liaoning Changyu Icewine Valley Co., Ltd. (“Icewine Valley”) (e) | Benxi City, Liaoning Province, China | Benxi City, Liaoning Province, China | Manufacturing industry | 51% | Acquired by establishment or investment | |
Yantai Development Zone Changyu Trading Co., Ltd. (“Development Zone Trading”) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Sales | 100% | Acquired by establishment or investment | |
Shenzhen Changyu Wine Marketing Co., Ltd. (“Shenzhen Marketing”) | Shenzhen City, Guangdong Province, China | Shenzhen City, Guangdong Province, China | Sales | 100% | Acquired by establishment or investment | |
Yantai Fushan District Changyu Trading Co., Ltd. (“Fushan Trading”) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Sales | 100% | Acquired by establishment or investment | |
Beijing Changyu AFIP International Conference Center Co., Ltd. (“Conference Center”) | Miyun County, Beijing City, China | Miyun County, Beijing City, China | Service industry | 100% | Acquired by establishment or investment | |
Beijing Changyu AFIP Tourism and Culture Co., Ltd. (“AFIP Tourism”) | Miyun County, Beijing City, China | Miyun County, Beijing City, China | Tourist industry | 100% | Acquired by establishment or investment | |
Ningxia Wine | Yinchuan City, Ningxia Hui Autonomous Region, China | Yinchuan City, Ningxia Hui Autonomous Region, China | Manufacturing industry | 100% | Acquired by establishment or investment | |
Yantai Changyu Chateau Tinlot Co., Ltd. (“Chateau Tinlot”) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Wholesale and retail | 65% | 35% | Acquired by establishment or investment |
Changyu (Qingtongxia) Wine Sales Co., Ltd. (“Qingtongxia Sales”) | Qingtongxia City, Ningxia Hui Autonomous Region, China | Qingtongxia City, Ningxia Hui Autonomous Region, China | Sales | 100% | Acquired by establishment or investment | |
Shihezi Chateau | Shihezi City, Xinjiang Uygur Autonomous Region, China | Shihezi City, Xinjiang Uygur Autonomous Region, China | Manufacturing industry | 100% | Acquired by establishment or investment | |
Ningxia Chateau | Yinchuan City, Ningxia Hui Autonomous Region, China | Yinchuan City, Ningxia Hui Autonomous Region, China | Manufacturing industry | 100% | Acquired by establishment or investment | |
Chateau Changyu Rena Shaanxi Co., Ltd. (“Chang’an Chateau”) | Xianyang City, Shaanxi Province, China | Xianyang City, Shaanxi Province, China | Manufacturing industry | 100% | Acquired by establishment or investment | |
Research, Development & Manufacture Company (f) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Manufacturing industry | 68% | Acquired by establishment or investment | |
Changyu (Huanren) Pioneer Wine Co., Ltd. (“Huanren Wine”) | Benxi City, Liaoning Province, China | Benxi City, Liaoning Province, China | Wine-making project preparation | 100% | Acquired by establishment or investment | |
Xinjiang Changyu Wine Sales Co., Ltd. (“Xinjiang Sales”) | Xinjiang Uygur Autonomous Region, China | Xinjiang Uygur Autonomous Region, China | Sales | 100% | Acquired by establishment or investment | |
Ningxia Changyu Trading Co., Ltd. (“Ningxia Trading”) | Yinchuan City, Ningxia Hui Autonomous Region, China | Yinchuan City, Ningxia Hui Autonomous Region, China | Sales | 100% | Acquired by establishment or investment | |
Shaanxi Changyu Rena Wine Sales Co., Ltd. (“Shaanxi Sales”) | Xianyang City, Shaanxi Province, China | Xianyang City, Shaanxi Province, China | Sales | 100% | Acquired by establishment or investment |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Name of subsidiary | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
Direct | Indirect | |||||
Penglai Changyu Wine Sales Co., Ltd. (“Penglai Wine”) | Penglai City, Shandong Province, China | Penglai City, Shandong Province, China | Sales | 100% | Acquired by establishment or investment | |
Laizhou Changyu Wine Sales Co., Ltd. (“Laizhou Sales”) | Laizhou City, Shandong Province, China | Laizhou City, Shandong Province, China | Sales | 100% | Acquired by establishment or investment | |
Francs Champs Participations SAS | Cognac, France | Cognac, France | Investment trade | 100% | Acquired by establishment or investment | |
Lanzhou Changyu Wine Marketing Co., Ltd. (“Lanzhou Marketing”) | Lanzhou City, Gansu Province, China | Lanzhou City, Gansu Province, China | Sales | 100% | Acquired by establishment or investment | |
Beijing Changyu Trading Co., Ltd. (“Beijing Trading”) | Beijing City, China | Beijing City, China | Sales | 100% | Acquired by establishment or investment | |
Tianjin Changyu Pioneer Wine Sales Co., Ltd. (“Tianjin Pioneer”) | Tianjin City, China | Tianjin City, China | Sales | 100% | Acquired by establishment or investment | |
Fuzhou Changyu Pioneer Wine Co., Ltd. (“Fuzhou Pioneer”) | Fuzhou City, Fujian Province, China | Fuzhou City, Fujian Province, China | Sales | 100% | Acquired by establishment or investment | |
Nanjing Changyu Pioneer Wine Co., Ltd. (“Nanjing Pioneer”) | Nanjing City, Jiangsu Province, China | Nanjing City, Jiangsu Province, China | Sales | 100% | Acquired by establishment or investment | |
Xianyang Changyu Pioneer Wine Sales Co., Ltd. (“Xianyang Pioneer”) | Xianyang City, Shaanxi Province, China | Xianyang City, Shaanxi Province, China | Sales | 100% | Acquired by establishment or investment | |
Shenyang Changyu Pioneer Wine Co., Ltd. (“Shenyang Pioneer”) | Shenyang City, Liaoning Province, China | Shenyang City, Liaoning Province, China | Sales | 100% | Acquired by establishment or investment | |
Jinan Changyu Pioneer Wine Co., Ltd. (“Jinan Pioneer”) | Jinan City, Shandong Province, China | Jinan City, Shandong Province, China | Sales | 100% | Acquired by establishment or investment | |
Shanghai Changyu Pioneer Wine Co., Ltd. (“Shanghai Pioneer”) | Shanghai City, China | Shanghai City, China | Sales | 100% | Acquired by establishment or investment | |
Fuzhou Changyu Pioneer Wine Co., Ltd. (“Fuzhou Pioneer”) | Fuzhou City, Jiangxi Province, China | Fuzhou City, Jiangxi Province, China | Sales | 100% | Acquired by establishment or investment | |
Shijiazhuang Changyu Pioneer Wine Sales Co., Ltd. (“Shijiazhuang Pioneer”) | Shijiazhuang City, Hebei Province, China | Shijiazhuang City, Hebei Province, China | Sales | 100% | Acquired by establishment or investment | |
Hangzhou Yuzefeng Trading Co., Ltd. (“Hangzhou Yuzefeng”) | Hangzhou City, Zhejiang Province, China | Hangzhou City, Zhejiang Province, China | Sales | 100% | Acquired by establishment or investment | |
Jilin Changyu Pioneer Wine Co., Ltd. (“Jilin Pioneer”) | Changchun City, Jilin Province, China | Changchun City, Jilin Province, China | Sales | 100% | Acquired by establishment or investment | |
Beijing Changyu Pioneer Wine Sales Co., Ltd. (“Beijing Pioneer”) | Beijing City, China | Beijing City, China | Sales | 100% | Acquired by establishment or investment | |
Harbin Changyu Pioneer Wine Sales Co., Ltd. (“Harbin Pioneer”) | Harbin City, Heilongjiang Province, China | Harbin City, Heilongjiang Province, China | Sales | 100% | Acquired by establishment or investment | |
Hunan Changyu Pioneer Wine Co., Ltd. (“Hunan Pioneer”) | Changsha City, Hunan Province, China | Changsha City, Hunan Province, China | Sales | 100% | Acquired by establishment or investment | |
Yinchuan Changyu Pioneer Wine Co., Ltd. (“Yinchuan Pioneer”) | Yinchuan City, Ningxia Hui Autonomous Region, China | Yinchuan City, Ningxia Hui Autonomous Region, China | Sales | 100% | Acquired by establishment or investment | |
Kunming Changyu Pioneer Wine Co., Ltd. (“Kunming Pioneer”) | Kunming City, Yunnan Province, China | Kunming City, Yunnan Province, China | Sales | 100% | Acquired by establishment or investment | |
Chongqing Changyu | Chongqing City, China | Chongqing City, China | Sales | 100% | Acquired by |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Name of subsidiary | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
Direct | Indirect | |||||
Pioneer Wine Sales Co., Ltd. (“Chongqing Pioneer”) | establishment or investment | |||||
Wuhan Changyu Pioneer Wine Co., Ltd. (“Wuhan Pioneer”) | Wuhan City, Hubei Province, China | Wuhan City, Hubei Province, China | Sales | 100% | Acquired by establishment or investment | |
Hohhot Changyu Pioneer Wine Co., Ltd. (“Hohhot Pioneer”) | Hohhot City, Inner Mongolia Autonomous Region , China | Hohhot City, Inner Mongolia Autonomous Region , China | Sales | 100% | Acquired by establishment or investment | |
Chengdu Changyu Pioneer Wine Co., Ltd. (“Chengdu Pioneer”) | Chengdu City, Sichuan Province, China | Chengdu City, Sichuan Province, China | Sales | 100% | Acquired by establishment or investment | |
Nanning Changyu Pioneer Wine Co., Ltd. (“Nanning Pioneer”) | Nanning City, Guangxi Zhuang Autonomous Region, China | Nanning City, Guangxi Zhuang Autonomous Region, China | Sales | 100% | Acquired by establishment or investment | |
Lanzhou Changyu Pioneer Wine Co., Ltd. (“Lanzhou Pioneer”) | Lanzhou City, Gansu Province, China | Lanzhou City, Gansu Province, China | Sales | 100% | Acquired by establishment or investment | |
Yantai Roullet-Fransac Imported Wine Sales Co., Ltd. (“Yantai Roullet-Fransac”) | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Sales | 100% | Acquired by establishment or investment | |
Hefei Changyu Pioneer Wine Co., Ltd. (“Hefei Pioneer”) | Hefei City, Anhui Province, China | Hefei City, Anhui Province, China | Sales | 100% | Acquired by establishment or investment | |
Urumchi Changyu Pioneer Wine Co., Ltd. (“Urumchi Pioneer”) | Urumchi City, Xinjiang Uygur Autonomous Region, China | Urumchi City, Xinjiang Uygur Autonomous Region, China | Sales | 100% | Acquired by establishment or investment | |
Guangzhou Changyu Pioneer Wine Co., Ltd. (“Guangzhou Pioneer”) | Guangzhou City, Guangdong Province, China | Guangzhou City, Guangdong Province, China | Sales | 100% | Acquired by establishment or investment | |
Wine Sales Co., Ltd. | Yantai City, Shandong Province, China | Yantai City, Shandong Province, China | Sales | 100% | Acquired by establishment or investment |
Explanation for difference between the proportion of shareholding and proportion of voting powerin the subsidiaries:
(a) Xinjiang Tianzhu is a subsidiary of the Company obtained by merger and acquisition,whose 60% of the shares are held by the Company. The Company exercises full control overthe operation, investment and financing policies of Xinjiang Tianzhu by contract arrangement.This contract arrangement was expired on August 6, 2017. After the expiration, the minorityshareholders of Xinjiang Tianzhu shall enjoy/bear all rights/duties of shareholders specified inthe Articles of Association.
(b) Changyu Chateau is a Sino-foreign joint venture established by the Company and aforeign investor, whose 70% of the shares are held by the Company. The Company exercisesfull control over the operation, investment and financing policies of Changyu Chateau bycontract arrangement. The contract arrangement will expire on December 31, 2022.
(c) Langfang Castel is a Sino-foreign joint venture established by the Company and a foreigninvestor, whose 49% of the shares are held by the Company and its subsidiaries. TheCompany exercises full control over the operation, investment and financing policies ofLangfang Castel by contract arrangement. The contract arrangement expired on December 31,2017. After the expiration of the contract arrangement, the minority shareholders of LangfangCastel normally enjoy/undertake all rights/duties of the shareholders agreed in the Articles of
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Association of the Company.
(d) Beijing Chateau is a limited liability company jointly established by the Company andYantai De’an and Beijing Qinglang, in which the Company holds 90% of the shares. TheCompany exercises full control over the operation, investment and financing policies ofBeijing Chateau by contract arrangement. The contract arrangement will expire on September2, 2019.
(e) Icewine Valley is a Sino-foreign joint venture established by the Company and a foreigninvestor, whose 51% of the shares are held by the Company. The Company exercises fullcontrol over the operation, investment and financing policies of Icewine Valley by contractarrangement. The contract arrangement will expire on December 31, 2021.
(f) The Research, Development & Manufacture Company is a joint venture established by theCompany and Agricultural Development Fund, whose 68% of the shares were held by theCompany on June 30, 2019. As stated in Note 7.27, the Company exercises full control overthe operation, investment and financing policies of the Research, Development &Manufacture Company by contract arrangement. The contract arrangement will expire onMay 22, 2026. Up to June 30, 2019, the remaining investment of the AgriculturalDevelopment Fund accounted for 32% of the registered capital.
9.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
Name of subsidiary | Shareholding proportion of minority shareholders | Profit/loss attributable to minority shareholders in this period | Dividend declared to be distributed to minority shareholders in this period | Balance of minority shareholder’s interest at the end of period |
Xinjiang Tianzhu | 40% | -1,200,628 | 49,412,020 | |
Marques del Atrio | 25% | 464,844 | 1,367,975 | 29,878,944 |
Changyu Chateau | 30% | 12,365,016 | ||
Langfang Castel | 51% | -752,237 | 20,175,744 | |
Beijing Chateau | 10% | 65,133,868 | ||
Icewine Valley | 49% | 33,319,062 | ||
Indomita Wine | 15% | 564,376 | 53,709,304 | |
Kilikanoon Estate, Australia | 20% | -301,829 | 16,204,035 |
Explanation for difference between the proportion of shareholding and proportion of votingpower of the minority shareholders in the subsidiaries: See details in Note 9.1.1.
9.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Name of subsidiary | Ending balance | Beginning balance | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Xinjiang Tianzhu | 26,891,774 | 64,187,998 | 91,079,771 | -169,932 | 5,336,114 | 5,166,181 | 27,390,495 | 66,486,795 | 93,877,290 | 5,336,114 | 5,336,114 | |
Changyu Chateau | 126,947,614 | 113,877,340 | 240,824,954 | 163,176,906 | 163,176,906 | 141,298,023 | 114,694,168 | 255,992,191 | 171,869,662 | 171,869,662 | ||
Langfang Castel | 16,966,616 | 15,672,549 | 32,639,165 | 4,033,546 | 4,033,546 | 17,659,511 | 16,001,682 | 33,661,193 | 3,358,322 | 3,358,322 | ||
Beijing Chateau | 228,256,490 | 458,433,952 | 686,690,442 | 45,912,267 | 45,912,267 | 219,973,582 | 461,115,089 | 681,088,671 | 62,598,545 | 62,598,545 | ||
Icewine Valley | 61,748,346 | 23,105,860 | 84,854,207 | 31,627,378 | 100,000 | 31,727,378 | 45,194,591 | 23,920,890 | 69,115,481 | 14,974,458 | 100,000 | 15,074,458 |
Marques del Atrio | 407,617,465 | 92,937,395 | 500,554,860 | 304,115,810 | 72,890,389 | 377,006,198 | 464,421,130 | 99,080,668 | 563,501,798 | 381,659,315 | 54,520,937 | 436,180,252 |
Indomita Wine | 210,503,095 | 295,300,215 | 505,803,310 | 138,985,158 | 4,861,038 | 143,846,196 | 214,784,490 | 300,969,342 | 515,753,832 | 148,359,328 | 4,976,161 | 153,335,489 |
Kilikanoon Estate, Australia | 82,656,715 | 64,415,130 | 147,071,845 | 12,813,137 | 52,227,853 | 65,040,990 | 87,634,707 | 63,759,866 | 151,394,573 | 13,387,942 | 51,893,171 | 65,281,113 |
Unit: Yuan
Name of subsidiary | Amount incurred in this period | Amount incurred in prior period | ||||||
Operating income | Net profit | Total comprehensive income | Operating cash flow | Operating income | Net profit | Total comprehensive income | Operating cash flow | |
Xinjiang Tianzhu | -3,001,571 | -1,297,212 | -417,462 | 18,803 | -184,572 | -184,572 | 10,284,801 | |
Changyu Chateau | 24,470,842 | -2,189,871 | -686,874 | 6,946,282 | 43,226,910 | 2,861,474 | 2,861,474 | 2,419,427 |
Langfang Castel | -1,474,975 | -821,013 | 25,801 | 5,038,281 | -1,952,954 | -1,952,954 | -4,435,022 | |
Beijing Chateau | 90,339,526.00 | 12,711,985 | 22,752,823 | 9,667,568 | 78,502,666 | 15,243,700 | 15,243,700 | 12,282,145 |
Icewine Valley | 19,763,387.00 | -1,986,710 | -754,056 | 1,903,734 | 27,305,133 | 905,396 | 905,396 | 2,018,740 |
Marques del Atrio | 129,064,457 | 1,859,381 | -4,084,674 | -23,846,960 | 148,197,893 | 1,214,012 | -929,332 | -21,783,821 |
Indomita Wine | 86,818,838 | 3,762,504 | 1,880,687 | -1,725,571 | 93,719,341 | -281,859 | -4,460,814 | -7,723,684 |
Kilikanoon Estate, Australia | 22,852,809 | -1,509,147 | -4,011,458 | 1,024,962 | 25,904,401 | -115,317 | -3,779,883 | -1,469,903 |
10. Risks related to financial instruments
The main financial instruments of the Group include monetary capital, bills receivable, accountsreceivable, receivables financing, other receivables, other non-current financial assets, short-termloans, non-current liabilities due within one year, accounts payable, other payables, long-termaccounts payable and long-term loans, etc. Please refer to Note 7 for details of each financialinstruments. The risks related to these financial instruments and risk management policies adopted bythe Group to reduce these risks are shown as follows. The management of the Group manages andmonitors these risk exposures to ensure that the above-mentioned risks are controlled within a defined
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
scope.The Group adopts sensitivity analysis techniques to analyze the possible influence of possiblereasonable changes of risk variables on the current profits and losses and shareholders’ equity. Sinceany risk variable merely changes independently and the final influence of relevance between variableson the change of certain risk variable will exert a great effect, the following content is carried outunder the hypothesis that each variable changes independently.The risk management objective of the Group is to achieve proper balance between risks and benefits,to minimize the negative influence of the risks on the business performance of the Group and tomaximize the shareholders’ benefit. Based on this risk management objective, the basic riskmanagement strategy of the Group is to determine and analyze various risks faced by the Group, to setup proper risk tolerance bottom line and to carry out risk management, and to supervise various riskstimely and reliably to control the risks within a defined scope.
10.1 Risk management objective and policy
10.1.1 Market risk
① Foreign exchange risk
Foreign exchange risk refers to the risk that causes loss due to exchange rate fluctuation. The foreignexchange risk borne by the Group is mainly relevant to EUR and USD. Except that the overseassubsidiaries of the Group purchase and sell in EUR, Chilean peso and AUD, which borrow in USD,and domestic subsidiaries deposit in EUR and USD, other main business activities of the Group arepriced and settled in RMB. As at June 30, 2019, except that the assets and liabilities mentioned in thetable below were the balance of deposits or loans shown in foreign currencies, other assets andliabilities of the entities of the Group were settled in their respective functional currencies.
Unit: Yuan
Item | Ending balance | Beginning balance |
Monetary capital (EUR) | 22,677 | 199,753 |
Monetary capital (USD) | 50,339,468 | 51,283,910 |
Short-term loans (USD) | 75,621,700 | 75,495,200 |
The foreign exchange risk caused by the assets and liabilities of such foreign currency balance mayexert an influence on the business performance of the Group. The Group pays close attention to theinfluence of exchange rate fluctuation on the foreign exchange risk of the Group. The Group has nottaken any measures to avoid the foreign exchange risk at present.
Sensitivity analysis of foreign exchange risk
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
With the other variables unchanged, the pre-tax influence of possible reasonable exchange ratefluctuation on current profit and loss and shareholders’ equity is shown as follows:
Domestic entities:
Unit: Yuan
Item | Exchange rate fluctuation | This period | |
Influence on profit in this period | Influence on shareholders’ equity | ||
EUR | 5% appreciation against RMB | 1,134 | 1,134 |
EUR | 5% depreciation against RMB | -1,134 | -1,134 |
USD | 5% appreciation against RMB | 2,339,288 | 2,339,288 |
USD | 5% depreciation against RMB | -2,339,288 | -2,339,288 |
Overseas entities:
Unit: Yuan
Item | Exchange rate fluctuation | This period | |
Influence on profit in this period | Influence on shareholders’ equity | ||
USD | 5% appreciation against EUR | 10,250 | 10,250 |
USD | 5% depreciation against EUR | -10,250 | -10,250 |
USD | 10% appreciation against CLP | -115,086 | -115,086 |
USD | 10% depreciation against CLP | 115,086 | 115,086 |
Note: As at June 30, 2019, the management of the Group predicted that EUR and USD exchange rateagainst RMB, and USD exchange rate against EUR changed by 5%; and USD exchange rate againstCLP changed by 15%.
② Interest rate risk – risk of change in cash flow
The risk of change in cash flow of financial instruments caused by interest rate change of the Group ismainly relevant to the monetary capital and bank loan at floating interest rate. The policy of the Groupis to maintain the floating interest rate of these loans to eliminate the risk of change in fair value of theinterest rate.
Sensitivity analysis of interest rate riskSensitivity analysis of interest rate risk is based on the hypothesis that the change in market interestrate influences the interest income or expense of financial instruments at variable rate.
The management of the Group thinks that the interest rate risk of deposit in bank borne by the Groupis not significant, and therefore the sensitivity analysis of interest rate of deposit in bank is notdisclosed here.
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
On the basis of the above-mentioned hypothesis, with the other variables unchanged, the pre-taxinfluence of possible reasonable exchange rate fluctuation on current profit and loss and shareholders’equity is as follows:
Unit: Yuan
Item | Interest rate change | This period | |
Influence on profit of this period | Influence on shareholders’ equity | ||
Bank loan | Increase by 50 BP | -323,958 | -323,958 |
Bank loan | Decrease by 50 BP | 323,958 | 323,958 |
Note: As at June 30, 2019, the management of the Group predicted that the bank floating rate changedby 50 basis points
10.1.2 Credit risk
As at June 30, 2019, the largest credit risk exposure possibly causing the financial loss of theGroup was mainly caused by the loss generated by the financial assets of the Group due tofailure of another party of the contract in fulfilling obligations.
To lower the credit risk, the Group only trades with the recognized and reputable third party.In accordance with the policy of the Group, credit check shall be carried out for all customerswho transact by means of credit. In addition, the Group conducts continuous monitoring onthe balance of accounts receivable to ensure that the Group will not face major risk of baddebts. For transactions not settled with recording currency of relevant business units, unlessthe credit control department of the Group specially approves, the Group will not providecredit trade terms. In addition, the Group audits the collection of each single significantaccount receivable on each date of balance sheet to ensure that sufficient bad-debt provision isaccrued for accounts unable to be collected. Therefore, the management of the Group thinksthe credit risk borne by the Group is greatly reduced.
Since the Group only trades with the recognized and reputable third party, no collateral isrequired. The credit risk is managed centrally according to the customer/counter-party,geographic area and industry. As at June 30, 2019, 18.3% of accounts receivable of the Groupcame from top five borrowers in accounts receivable of the Group (December 31, 2018:
19.8%). The Group holds no collateral or other credit enhancement for the balance ofaccounts receivable.
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
10.1.3 Liquidity risk
When managing the liquidity risk, the Group reserves and monitors the cash and cashequivalents the management considers sufficient to satisfy the operation need of the Groupand reduce the influence of fluctuation in cash flow. The management of the Group monitorsthe use of bank loans and ensures to abide by the loan agreement.
11. Related parties and related transactions
11.1 Particulars of the parent company of the Company
Name of parent company | Registration place | Business nature | Registered capital | Proportion of shareholding of the parent company in the Company | Proportion of voting powers of the parent company in the Company |
Changyu Group Company | Yantai City | Manufacturing industry | 50,000,000 | 50.40% | 50.40% |
From January to June 2019, there was no fluctuation in the registered capital of the parentcompany and its share in equity interest and voting right.
11.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 9.
11.3 Particulars of other related parties
Name of other related parties | Relationship between other related parties and the Company |
Yantai Changyu Wine Culture Museum Co., Ltd. (“Wine Culture Museum”) | A company controlled by the same parent company |
Yantai Changyu Window of International Wine City Co. Ltd. (“Window of Wine City”) | A company controlled by the same parent company |
Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) | A company controlled by the same parent company |
Yantai Zhongya Medical Health Wine Co., Ltd. (“Zhongya Medical”) | A company controlled by the same parent company |
Yantai Changyu Cultural Tourism Product Sales Co., Ltd. (“Cultural Sales”) | A company controlled by the same parent company |
Yantai Changyu Cultural Tourism Development Co., Ltd. (“Cultural Development”) | A company controlled by the same parent company |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
11.4 Related transactions
11.4.1 Related transactions of purchasing and selling goods and providing and receivingservicesList of purchasing goods/receiving services
Unit: Yuan
Related parties | Related transactions | Amount incurred in this period | Approved transaction amount | Exceeding the transaction amount or not | Amount incurred in prior period |
God Horse Packing | Purchasing goods | 74,970,845 | 95,990,354 | ||
Zhongya Medical | Purchasing goods | 2,970,007 | 6,037,893 | ||
Wine Culture Museum | Purchasing goods | 7,324,199 | 9,475,159 | ||
Window of Wine City | Purchasing goods | 6,853,112 | 2,857,130 | ||
Cultural Sales | Purchasing goods | 65,907 | |||
Cultural Development | Purchasing goods | 40,458 |
List of selling goods/providing services
Unit: Yuan
Related parties | Related transactions | Amount incurred in this period | Amount incurred in prior period |
Wine Culture Museum | Selling goods | 3,377,011 | 13,889,017 |
Window of Wine City | Selling goods | 3,891,101 | 8,773,612 |
Zhongya Medical | Selling goods | 2,559,870 | 2,203,629 |
God Horse Packing | Selling goods | 3,520 | 15,742 |
Cultural Sales | Selling goods | 3,873,204 | |
Cultural Development | Selling goods | 1,847,727 | 220,759 |
The price of transactions between the Group and the related parties are based on thenegotiated price.
11.4.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
11.4.3 Leasing with related parties
The Company as a lessor:
Unit: Yuan
Name of the lessee | Type of leased assets | Rental income recognized in this period | Rental income recognized in prior period |
God Horse Packing | Office building and plant | 742,883 | 739,491 |
Window of Wine City | Office building | 488,595 | 486,364 |
Zhongya Medical | Office building | 260,279 | 259,091 |
The Company as a lessee:
Unit: Yuan
Name of the lessor | Type of leased assets | Rent recognized in this period | Rent recognized in prior period |
Changyu Group Company | Office building and plant | 3,447,891 | 3,432,147 |
11.4.4 Related guarantee
Nil
11.4.5 Inter-bank borrowing and lending of related parties
Nil
11.4.6 Asset transfer and debt recombination of related parties
Nil
11.4.7 Other related transactions
Unit: Yuan
Item | Note | Amount incurred in this period | Amount incurred in prior period |
Trademark use fee | (a) | 44,428,033 | |
Patent fee | (b) | 25,000 |
11.5 Accounts receivable and payable of the related parties
11.5.1 Accounts receivable
Unit: Yuan
Item | Related parties | Ending balance | Beginning balance | ||
Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
Accounts receivable | Zhongya Medical | 4,384,629 | 2,768,391 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Accounts receivable | God Horse Packing | 17,137 | |||
Accounts receivable | Window of Wine City | 1,777,525 | 1,911,157 | ||
Other receivables | God Horse Packing | 1,626,880 | 813,440 | ||
Other receivables | Zhongya Medical | 285,000 | |||
Other receivables | Window of Wine City | 535,000 |
11.5.2 Accounts payable
Unit: Yuan
Item | Related parties | Ending book balance | Beginning book balance |
Accounts payable | God Horse Packing | 36,227,351 | 55,366,785 |
Accounts payable | Zhongya Medical | 8,002,230 | 6,722,667 |
Accounts payable | Wine Culture Museum | 7,301,765 | 4,646,731 |
Accounts payable | Window of Wine City | 1,139,407 | 4,789,600 |
Accounts payable | Cultural Sales | 6,360 | |
Other accounts payable | Changyu Group Company | 3,775,362 | 78,414,978 |
Other accounts payable | God Horse Packing | 450,000 |
12. Commitment and contingency
12.1 Significant commitment
Unit: Yuan
Item | Ending balance | Beginning balance |
Making long-term asset commitments | 469,980,000 | 996,675,000 |
12.2 Contingency
As of the balance sheet date, the Group didn’t have any contingency to be disclosed.
13. Matters after balance sheet
13.1 Important non-adjusting events
Nil
13.2 Profit distribution
Unit: Yuan
Profits or dividends to be distributed | 411,278,400 |
Allocated profits or dividends approved to declare upon discussion | 411,278,400 |
13.3 Other statement of events after the balance sheet date
According to the decision of the Shareholders’ Meeting dated May 17, 2019, based on the issuedcapital stock of 685,464,000 shares in 2018, the Company allocated RMB 6 Yuan in cash (including
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
tax) for every 10 shares to all shareholders with the total cash dividends of RMB 411,278,400 Yuan.Such cash dividends were distributed on July 8, 2019 and July 10, 2019 respectively.
14. Other important matters
Nil
15. Notes on major items in financial statements of the parent company
15.1 Accounts receivable
15.1.1 Accounts receivable disclosed by type
Unit: Yuan
Type | Ending balance | Beginning balance | ||||||||
Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
Accounts receivable for which provision for bad debts is accrued on a single item basis | 1,447,973 | 100% | 1,447,973 | |||||||
Accounts receivable for bad debts is accrued on a combined basis | ||||||||||
Total | 1,447,973 | 100% | 1,447,973 |
15.1.2 Provision for bad debts accrued, withdrawn or transferred back in this periodThe provision for bad debts accrued in this period was RMB 0 Yuan; and that withdrawn ortransferred back in this period was RMB 0 Yuan.
15.1.3 Accounts receivable actually cancelled after verification in this periodNil
15.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the endingbalanceNil
15.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
15.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
15.2 Other receivables
Unit: Yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item | Ending balance | Beginning balance |
Interest receivable | 277,785 | 254,088 |
Dividends receivable | 4,103,925 | 500,000,000 |
Other receivables | 522,211,903 | 525,389,268 |
Total | 526,593,613 | 1,025,643,356 |
Remarks: The other receivables in the above list refer to those deducting interest receivable and dividends receivable.
15.2.1 Interest receivable
Unit: Yuan
Item | Ending balance | Beginning balance |
Fixed deposit | 277,785 | 254,088 |
Entrusted loan | ||
Bond investment | ||
Total | 277,785 | 254,088 |
15.2.2 Dividends receivable
Unit: Yuan
Item (or the invested unit) | Ending balance | Beginning balance |
Dividends receivable from subsidiaries | 4,103,925 | 500,000,000 |
Total | 4,103,925 | 500,000,000 |
15.2.3 Other receivables
15.2.3.1 Particulars of other receivables classified by nature
Unit: Yuan
Nature | Ending book balance | Beginning book balance |
Accounts receivable from subsidiaries | 518,330,846 | 523,579,831 |
Deposit and guaranty money receivable | 12,500 | |
Other | 3,881,057 | 1,796,937 |
Total | 522,211,903 | 525,389,268 |
15.2.3.2 Disclosed by age
Unit: Yuan
Age | Ending balance |
Within 1 year (including) | 422,841,109 |
1-2 years | 99,270,390 |
2-3 years | 100,404 |
More than 3 years | |
Total | 522,211,903 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
15.2.3.3 Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan; and that withdrawn ortransferred back in this period was RMB 0 Yuan.
15.2.3.4 Accounts receivable actually cancelled after verification in this periodNil
15.2.3.5 Other accounts receivable collected by the borrower of top 5 units ranked bythe ending balance
Unit: Yuan
Unit | Nature of fund | Ending balance | Age | Percentage in the total ending balance of other accounts receivable | Ending balance of provision for bad debts |
Sales Company | Internal incomings and outgoings | 179,295,939 | Within 1 year | 34.3% | |
R&D Company | Internal incomings and outgoings | 111,343,650 | Within 1 year | 21.3% | |
Laizhou Wine | Internal incomings and outgoings | 5,549,972 | Within 1 year | 1.1% | |
Penglai Sales | Internal incomings and outgoings | 3,992,770 | Within 1 year | 0.8% | |
Indomita Wine Company Chile, SpA | Internal incomings and outgoings | 3,330,413 | Within 1 year | 0.6% | |
Total | -- | 303,512,744 | -- | 58.1% |
15.2.3.6 Accounts receivable related to governmental subsidy
Nil
15.2.3.7 Other accounts receivable derecognized due to transfer of financial assetsNil
15.2.3.8 Other accounts receivable transferred and included in assets and liabilitiesNil
15.3 Long-term equity investment
Unit: Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
Investment in subsidiaries | 7,420,803,069 | 7,420,803,069 | 7,420,803,069 | 7,420,803,069 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item | Ending balance | Beginning balance | ||||
Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
Investment in associated enterprises and joint ventures | ||||||
Total | 7,420,803,069 | 7,420,803,069 | 7,420,803,069 | 7,420,803,069 |
15.3.1 Investment in subsidiaries
Unit: Yuan
Invested unit | Beginning balance | Increase in this period | Decrease in this period | Ending balance | Provision for impairment accrued in this period | Ending balance of impairment provision |
Xinjiang Tianzhu (a) | 60,000,000 | 60,000,000 | ||||
Kylin Packaging | 23,176,063 | 23,176,063 | ||||
Changyu Chateau (a) | 28,968,100 | 28,968,100 | ||||
Pioneer International (b) | 3,500,000 | 3,500,000 | ||||
Ningxia Growing | 36,573,247 | 36,573,247 | ||||
National Wine | 2,000,000 | 2,000,000 | ||||
Icewine Valley (a) | 30,440,500 | 30,440,500 | ||||
Beijing Chateau (a) | 579,910,000 | 579,910,000 | ||||
Sales Company | 7,200,000 | 7,200,000 | ||||
Langfang Sales (b) | 100,000 | 100,000 | ||||
Langfang Castel (a) | 19,835,730 | 19,835,730 | ||||
Wine Sales | 4,500,000 | 4,500,000 | ||||
Shanghai Marketing (b) | 300,000 | 300,000 | ||||
Beijing Marketing | 850,000 | 850,000 | ||||
Jingyang Sales (b) | 100,000 | 100,000 | ||||
Jingyang Wine (b) | 900,000 | 900,000 | ||||
Ningxia Wine | 222,309,388 | 222,309,388 | ||||
Ningxia Chateau | 453,463,500 | 453,463,500 | ||||
Chateau Tinlot (b) | 212,039,586 | 212,039,586 | ||||
Shihezi Chateau | 812,019,770 | 812,019,770 | ||||
Chang’an Chateau | 803,892,258 | 803,892,258 | ||||
Research, Development & Manufacture Company (a) | 3,288,906,445 | 3,288,906,445 | ||||
Huanren Wine | 22,200,000 | 22,200,000 |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Invested unit | Beginning balance | Increase in this period | Decrease in this period | Ending balance | Provision for impairment accrued in this period | Ending balance of impairment provision |
Wine Sales Company | ||||||
Francs Champs | 236,025,404 | 236,025,404 | ||||
Marques del Atrio | 190,150,544 | 190,150,544 | ||||
Indomita Wine | 274,248,114 | 274,248,114 | ||||
Kilikanoon Estate, Australia | 107,194,420 | 107,194,420 | ||||
Total | 7,420,803,069 | 7,420,803,069 |
(a) The Company acquired 100% voting right and usufruct of such non-wholly-owned subsidiaries by
means of contract arrangement. Please refer to Note 9.1.(b) The Company acquired 100% voting right of such subsidiaries by means of indirect holding through its
wholly-owned subsidiaries.From January to June 2019, there were no restrictions for the invested entities of the Company to transferassets to the Company.
15.4 Operating income and operating cost
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period | ||
Income | Cost | Income | Cost | |
Main business | 334,207,600 | 292,023,685 | 384,520,180 | 330,810,994 |
Other business | 18,143,402 | 17,546,895 | 24,325,031 | 21,835,995 |
Total | 352,351,002 | 309,570,580 | 408,845,211 | 352,646,989 |
15.5 Investment income
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Income from long-term equity investment by cost method | 264,221,755 | 312,409,576 |
Income from long-term equity investment by equity method | ||
Investment income from disposal of long-term equity investment | ||
Investment income of the financial assets measured at their |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
fair values and the variation of which is recorded into the current profits and losses during the holding period | ||
Investment income gained from disposal of the financial assets measured at their fair values and the variation of which is recorded into the current profits and losses | ||
Investment income of held-to-maturity investment during the holding period | ||
Investment income of financial assets held for sale during the holding period | ||
Investment income gained from disposal of financial assets held for sale | ||
Gains generated from the remaining equity remeasured as per fair value after the loss of control | ||
Total | 264,221,755 | 312,409,576 |
16. Supplementary materials
16.1 List of non-current profits/losses in this period
Unit: Yuan
Item | Amount | Remark |
Profits/losses on disposal of non-current assets | 1,138 | |
Tax return, deduction and exemption approved beyond the authority or without formal approval document |
64,211,892 | ||
Payment for use of funds by non-financial enterprises included in the current profits/losses | ||
Income obtained when the investment cost obtained by the enterprise from subsidiaries, joint-run business and joint venture is less than the fair value of the net identifiable assets obtained from the invested units when the investment is made | ||
Profits/losses on exchange of non-monetary assets | ||
Profits/losses on entrusting other people to make investment or manage assets |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item | Amount | Remark |
Asset impairment provision accrued due to force majeure such as natural disaster | ||
Profits/losses on debt restructuring | ||
Enterprise reorganization expenses such as staffing expenditure and integration expenses, etc. | ||
Profits/losses on those beyond the fair value generated from transactions with unfair transaction price | ||
Current net profits/losses on subsidiaries acquired from a business combination under common control from the beginning to the consolidation date | ||
Profits/losses on contingencies irrelated to the normal business of the Company | ||
Profits/losses on changes of fair value of tradable financial assets, derivative financial assets, tradable financial liabilities and derivative financial liabilities, and investment income from disposal of tradable financial assets, derivative financial assets, tradable financial liabilities, derivative financial liabilities and other investment in creditor's rights, excluding effective hedging operations relevant to the normal business of the Company | ||
Transfer-back of accounts receivable with single impairment test and provision for impairment of contract assets | ||
Profits/losses on external entrusted loans | ||
Profits/losses on fair value changes of investment real estate with fair value mode for follow-up measurement | ||
Influence of the one-time adjustment of the current profits/losses in accordance with tax and accounting laws and regulations on the current profits/losses | ||
Trustee fee income from entrusted operation | ||
Other non-operating income and expenditure besides the above items | 3,411,864 | |
Other profits/losses conforming to the definition of non-current profits/losses |
Yantai Changyu Pioneer Wine Co., Ltd. 2019 Semi-annual Report
Item | Amount | Remark |
Minus: Influenced amount of income tax | 16,671,778 | |
Influenced amount of minority shareholders’ equity | 40,022 | |
Total | 50,913,094 | -- |
16.2 Return on net assets and earnings per share
Profit incurred in this period | Weighted average return on net assets | Earnings per share | |
Basic EPS (Yuan/Share) | Diluted EPS (Yuan/Share) | ||
Net profit attributable to common shareholders of the Company | 6.13% | 0.88 | 0.88 |
Net profit attributable to common shareholders of the Company deducting non-incidental profits/losses | 5.62% | 0.81 | 0.81 |
16.3 Accounting data difference under domestic and foreign accounting standard
16.3.1 Net profits & net assets difference disclosed in the financial report according tothe international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits | Net assets | |||
Amount incurred in this period | Amount incurred in prior period | Ending balance | Beginning balance | |
In accordance with the Chinese accounting standard | 603,403,789 | 635,837,405 | 9,791,885,091 | 9,606,099,365 |
Item & amount adjusted in accordance with the international accounting standard: | ||||
In accordance with the international accounting standard | 603,403,789 | 635,837,405 | 9,791,885,091 | 9,606,099,365 |