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张裕B:2019年半年度报告(英文版) 下载公告
公告日期:2019-08-28

YantaiChangyuPioneerWineCo.,Ltd.2019Semi-annualReport

YantaiChangyuPioneerWineCo.,Ltd.

2019Semi-annualReport

Final2019-03

August,2019

Contents

2019Semi-annualReport ...... 1

I.ImportantNotice,ContentsandDefinition..................................................................................3

II.BriefIntroductionfortheCompanyandMainFinancialIndicators....................................5

III.SummaryoftheCompany’sBusinesses..................................................................................9

IV.ManagementDiscussionandAnalysis...................................................................................12

V.Majorissues...............................................................................................................................26

VI.ChangesinSharesandtheShareholders’Situation.............................................................39

VII.RelatedSituationofPreferredShares..................................................................................44

VIII.SituationforDirectors,Supervisors,SeniorExecutives.....................................................45

IX.RelatedSituationofCorporationBonds................................................................................47

X.FinancialReport..........................................................................................................................47

XI.ReferenceDocuments..............................................................................................................162

I.ImportantNotice,ContentsandDefinitionTheboardofdirectors,theboardofsupervisors,directors,supervisorsandseniorexecutivesoftheCompanyguaranteethetruthfulness,accuracyandcompletenessofthecontentscontainedinsemi-annualreportwithnofalserecords,misleadingstatementsorsignificantomissions,andundertakeindividualandjointlegalliabilities.Mr.ZhouHongjiang(PersoninchargeoftheCompany)andMr.JiangJianxun(PersoninchargeofaccountingworkaswellasPersoninchargeofaccountingorgan&accountincharge)assurethetruthfulness,accuracyandcompletenessofthefinancialreportinthesemi-annualreport.Nodirectors,supervisorsorseniorexecutivesissueastatementofobjectionto2019semi-annualreport.Exceptfollowingdirector,otherdirectorshavepersonallyattendedthemeetingfordeliberatingthesemi-annualreport.

NameofdirectornotattendingthemeetingpersonallyPositionofdirectornotattendingthemeetingpersonallyReasonofnotattendingthemeetingpersonallyNameofentrustee
DuanChangqingIndependentdirectorOnabusinesstripWangZhuquan

RegardingmajorrisksthattheCompanymayfaceduringtheproductionandmanagementprocess,pleasereferto“10.RisksfacedwithbytheCompanyandresponsemeasures”in“IVManagementDiscussionandAnalysis”inthisreport.Investorsaresuggestedtoreadcarefullyandpayattentiontoinvestmentrisks.TheCompanyhasnoplantodistributecashdividendsandbonussharesandcapitalreservewillnotbetransferredtoequity.

Definition

DefinitionItemReferstoDefinitionContent
Company/thisCompanyReferstoYantaiChangyuPioneerWineCo.,Ltd.
ChangyuGroup/ControllingShareholderReferstoYantaiChangyuGroupCo.,Ltd.
CSRCReferstoChinaSecuritiesRegulatoryCommission
SSEReferstoShenzhenStockExchange
DeloitteHuaYongReferstoDeloitteHuaYongCertifiedPublicAccountantsCo.,LTD(specialgeneralpartnership)
CNYReferstoChineseYuan

II、BriefIntroductionfortheCompanyandMainFinancialIndicators

1.Company’sinformation

AbbreviationoftheShares:ChangyuA、ChangyuBCodenumberoftheShares000869、200869
AbbreviationoftheSharesafteralteration-
PlaceoflistingoftheSharesShenzhenStockExchange
LegalNameinChinese烟台张裕葡萄酿酒股份有限公司
AbbreviationofChinesename张裕
LegalNameinEnglishYANTAICHANGYUPIONEERWINECOMPANYLIMITED
AbbreviationofEnglishnameCHANGYU
LegalRepresentativeMr.ZhouHongjiang

2.Contactpersonandinformation

SecretaryofBoardofDirectorsAuthorizedRepresentativeoftheSecuritiesAffairs
NameMr.JiangJianxunMr.LiTingguo
Address56DamaRoad,Yantai,Shandong,China56DamaRoad,Yantai,Shandong,China
Tel0086-535-66027610086-535-6633656
Fax0086-535-66336390086-535-6633639
E-mailjiangjianxun@changyu.com.cnstock@changyu.com.cn

3.Otherinformation

1)TheCompany’scontactinformationWhetherthereisanychangeintheCompany’sregisteredaddress,officeaddress,postcode,websiteande-mailaddressduringthereportperiod.

□Available?NotavailableThereisnochangeintheCompany’sofficeaddress,postcode,websiteande-mailaddressduringthereportperiod.Fordetailedinformation,pleasereferto2018annualreport.

2)InformationdisclosureandfilelocationWhetherthereisanychangeintheinformationdisclosureandfilelocationduringthereportperiod.

□Available?NotavailableThereisnochangeinthenameofnewspapersinwhichtheCompany’sinformationisdisclosed,thewebsiteassignedbyCSRCtocarrythesemi-annualreportandthelocationoftheCompany’s

semi-annualreportduringthereportperiod.Fordetailedinformation,pleasereferto2018annualreport.

4.KeyaccountingdataandfinancialindicatorsWhethertheCompanymakesretroactiveadjustmentsorrestatestheaccountingdataofpreviousfiscalyears.

□Yes?No

DuringthereportperiodInthesameperiodoflastyearMoreorlessthanlastyear(%)
Businessrevenue(CNY)2,558,274,7852,828,230,064-9.55%
Netprofitattributedtotheshareholdersofthelistedcompany(CNY)603,403,789635,837,405-5.10%
Netprofitattributedtotheshareholdersofthelistedcompanyafterdeductingtheirregularprofitandloss(CNY)552,490,695606,678,719-8.93%
Netcashflowsfromtheoperatingactivities(CNY)499,476,006552,753,472-9.64%
Basicearningspershare(CNY/share)0.880.93-5.38%
Dilutedearningspershare(CNY/share)0.880.93-5.38%
Weightedaverageforearningrateofthenetassets6.13%6.89%-0.76%
TheendofthisreportperiodTheendoflastyearMoreorlessthanlastyear(%)
Totalassets(CNY)13,383,093,43313,117,729,0522.02%
NetAssetsattributedtotheshareholdersofthelistedcompany(CNY)9,791,885,0919,606,099,3651.93%

5.DifferencesinaccountingdataunderPRCaccountingstandardsandinternationalaccountingstandards

1)DifferencesofnetprofitandnetassetinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandards?Available?Notavailable

Unit:CNY

NetprofitattributedtotheshareholdersofthelistedcompanyNetAssetsattributedtotheshareholdersofthelistedcompany
CurrentperiodLastperiodEndofperiodBeginningofperiod
AccordingtoPRCaccountingstandards603,403,789635,837,4059,791,885,0919,606,099,365
Itemandamountadjustedaccordingtointernationalaccountingstandards
Accordingtointernationalaccountingstandards603,403,789635,837,4059,791,885,0919,606,099,365

2)DifferencesofnetprofitandnetassetinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandards□Available?NotavailableTherearenodifferencesofnetprofitandnetassetinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandardsduringthereportperiod.

3)Explanationofthedifferencesinaccountingdataunderdomesticandoverseasaccountingstandards

□Available?Notavailable

6.Itemandamountofirregularprofitandloss?Available□Notavailable

Unit:CNY

AmountExplanation
Profitandlossondisposalofnon-currentassets(includingtheoffsetofprovisionforimpairmentofassets)1,138
Governmentgrantscreditedincurrentprofitandloss(exceptforgovernmentgrantsthatarecloselyrelatedtotheentity'sbusinessandareenjoyedwithaquotaorwithalimitedquantityinaccordancewithnationaluniformstandard64,211,892
Othernon-operatingincomeandexpenditurebesidesabove-mentioneditems3,411,864
Less:Amountaffectedbyincometax16,671,778
Amountaffectedbyminorityequity(aftertax)40,022
Total50,913,094-

ThereasonsshallbemadeclearanddefinitelyastotheirregularprofitandlossthattheCompanyhasdefinedbyvirtueoftheExplanatoryNoticeonPublicCompany’sInformationDisclosureNo.1

-IrregularProfitandLossandastoregardingtheirregularprofitandlossasrecurrentprofitandlossasspecifiedintheExplanatoryNoticeonPublicCompany’sInformationDisclosureNo.1-IrregularProfitandLoss.

□Available?NotavailableThereisnosituationthattheirregularprofitandlossisdefinedandspecifiedasrecurrentprofitandlossinaccordancewiththeExplanatoryNoticeonPublicCompany’sInformationDisclosureNo.1-IrregularProfitandLossduringthereportperiod.

III.SummaryoftheCompany’sBusinesses

1.MainbusinessesduringthereportperiodWhethertheCompanyneedstofollowthedisclosurerequirementofspecialbusinessNo.Duringthereportperiod,theCompany’smainbusinessistoproduceandoperatewineandbrandy,thusprovidingthedomesticandforeignconsumerswithhealthyandfashionablealcoholicdrinks.Comparedwithearlierstage,therearenomajorchangesintheCompany’smainbusinesses.Althoughthereisacertainfluctuationandexistsdownwardpressureinthedomesticwinemarketatpresentinshortterm,seeninthelongterm,theChinesewineindustryisgenerallyinthegrowthstageandstillremaintherisingtrend.TheCompanytakesthedominantpositioninthedomesticwinemarket.

2.Majorchangesofmainassets

1)Majorchangesofmainassets

MainassetsExplanationofmajorchanges
EquityassetNomajorchange
FixedassetNomajorchange
IntangibleassetNomajorchange
ConstructioninprocessNomajorchange

2)Mainoverseasassetscondition?Available□Notavailable

DetailsofassetsFormationreasonAssetsscaleLocationOperatingmodeControlmeasuresforsafeguardingassetsecurityEarningpositionProportionofoverseasassetsintheCompany’snetassetsWhethertherearemajorimpairmentrisks
HaciendaYVinedosMarquesDelAtrio,SLAcquisitionofequity500,554,860SpainIndependentoperationThisCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOforfinancialmanagement1,859,3814.97%No
IndomitaWineCompanyChile,SpAEstablishmentbyjointventure505,803,310ChileIndependentoperationThisCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOforfinancialmanagement3,762,5045.02%No
FrancsChampsParticipationsSASEstablishmentbysoleproprietorship229,246,260FranceIndependentoperationThisCompanydirectlyappointsseniorexecutivetoconductoperationandmanagement36,7042.28%No
KilikanoonEstatePtyLtdAcquisitionofequity147,071,845AustraliaIndependentoperationThisCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors-1,509,1471.46%No
OtherconditionexplanationDuringthereportperiod,KilikanoonEstatePtyLtdrealizedthenetprofitofCNY550thousandforitsownproductionandmanagement,butafterconductingtheamortizationofpremiumatthetimeofacquisitioninaccordancewithaccountingpolicy,thelosswasCNY1.5million.

3.AnalysisofcorecompetitivenessWhethertheCompanyneedstofollowthedisclosurerequirementofspecialbusiness?No.InthecompetitionpatternofChinesewineindustry,comparedwithotherparticipantsintheindustry,webelievethattheCompanyhasfollowingadvantages:

Firstly,theCompanyhasawell-knownwinebrandwithmorethan120yearsofhistory,“Changyu”,“NobleDragon”and“AFIP”areChinesefamoustrademarksthathavestronginfluenceandgoodreputation.Secondly,theCompanyhassetupanationwidemarketingnetwork.TheCompanyformsa“three-level”marketingnetworksystemmainlycomposedoftwoteamscontainingtheCompany’smarketingpersonnelanddistributors,possessingastrongmarketingabilityandmarketexploitationability.Thirdly,theCompanyownsstrongscientificprowessandaproductR&Dsystem.Relyingonthesole“National-levelWineR&DCenter”,theCompanygraspsadvancedwinemakingtechnologyandproductionprocessesandhasfairlystrongproductinnovationcapacityandperfectqualitycontrolsystem.Fourthly,theCompanyisinpossessionofgrapebasesthatcouldmeettherequirementsofdevelopment.Thescaleandthestructureofgrapebaseslocatinginregionsthatarethemostsuitableforgrowingwine-makinggrapesinChina,suchasShandong,Ningxia,Xinjiang,Liaoning,HebeiandShaanxi,havebasicallymettheCompany’sdemandsfordevelopment.Fifthly,theCompanyhasacompletehigh-end,medium-endandlow-endproductsaswellasvarietiesandcategories.Morethan100varietiesofwine,brandy,sparklingwineetc.,coveringhigh-end,medium-endandlow-endgrades,canmeettheneedsofdifferentconsumergroups.Aftermorethan10yearsofrapiddevelopment,theCompanyhasoccupiedtheleadingpositioninthedomesticwineindustry,whichhascertaincomparativeadvantagesinthefuturecompetition.Sixthly,theCompanyhasarelativelyperfectincentivemechanism.MostofCompany’semployeesindirectlyholdtheCompany’sequitythroughcontrollingshareholders.Therearehighconsistencybetweenemployeebenefitsandshareholderbenefits,infavorofbettermotivatingemployeestocreatevalueforshareholders.Seventhly,theCompanyhasestablishedaflexibleandefficientdecision-makingmechanism.ThecoremanagementoftheCompanyhasbeenmaintainingaunitedandpragmaticworkstyleandflexibleandefficientdecision-makingmechanism,enablingtheCompanytomoreunhurriedlyrespondtomarketchanges.Eighthly,theCompanyhasbasicallycompletedthelayoutofglobalproductioncapacity.TheCompanyhascompletedtheproductioncapacitylayoutintheworldwidemainwine-producingcountries,suchasChina,France,Chile,SpainandAustraliaandsoon,andcanmakebetteruseofglobalhigh-qualityrawmaterialresources,capital,talentsandadvancedproductiontechniquesandtechnologiestoprovideconsumerswithdiversifiedhighqualityproducts.Basedonabovereasons,theCompanyhasformedstrongcorecompetitivenessandwillmaintainthiscomparativeadvantageintheforeseeablemarketcompetitioninthefuture.

IV.ManagementDiscussionandAnalysis

1.SummarizationDuringthereportperiod,influencedbytheslowdownofdomesticeconomicgrowth,theoveralldemandofdomesticwineindustrywasrelativelyweak.Bothdomesticandimportedwinehadexperienceddeclineatvaryingdegreesinsalesvolumeandsalesrevenue.Thecompetitionindomesticwinemarket,especiallyformiddle-and-low-levelwines,wasveryfierce.Duetocontinuouslyinfluencessuchasincreaseinthepricesofrawmaterialsandpackagingmaterials,depreciationoffixedassetsandincreaseinfreightandlaborcosts,theCompany’sprofitabilitywasundergreaterpressure.Facingquitealotofunfavorablefactors,theCompanyinsistedintakingthemarketasthecenter,insistedthedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonbigproduct”(thestrategyof“ThreeFocuses”)withoutwavering,continuedintensifyinginternalreform,furtheroptimizedproductstructureandmarketlayout.Throughproductinnovation,managementinnovationandmarketinginnovation,theCompanystrivedtopromoteproductsalesandachievedcertaineffectsunderthebackgroundofthemarketthatbothdomesticwineandimportedwineshowalargedecreasewhollyinChinamarket,realizingthebusinessincomeofCNY2558.27millioninthefirsthalfyearwithadecreaseof9.55%comparedwithlastyearandthenetprofitattributabletotheparentcompany’sshareholdersofCNY603.4millioninthefirsthalfyearwithadecreaseof5.1%comparedwithlastyear.Duringthereportperiod,theCompanymainlydidfollowingwork:

Firstly,theCompany'sBoardofDirectors,BoardofSupervisorsandseniorexecutivesweresuccessfullyre-elected,injectingnewforces,optimizingstaffstructure,enhancingthemanagementlevelanddecision-makingabilityofthemanagementteamandprovidingareliableorganizationalguaranteefortheCompany’ssustainableandhealthydevelopmentinthefuture.Secondly,the"ThreeFocuses"strategywassteadilyadvancedandinitialresultswereachieved.Duringthereportperiod,amongthethreecorebusinesssegmentsofdomesticwine,brandyandimportedwine,theCompanyconcentrateditsmainresourcestofocusonthethreedomesticwinebrandssuchasMOSER,NobleDragonandZENITHWIRL;thetwobrandybrands“KOYA”and“ChangyuSuperiorFive-starSpecialFineBrandy”andthetwoimportedwinebrandsKilikanoonandINDOMITAachievedgoodresults,whichsloweddowntheCompany’swinedeclineandachievedasmallincreaseinbrandysalesrevenue.Thirdly,theorganizationstructureofsalessystemwasbasicallycompletedintermsofadjustmentandoptimization.Thetransformationfrommanagementdealerstoservingdealerswasactivelypromotedandtheconstructionof“Fundpool”withdealerswasenergeticallydeveloped.Duringthereportperiod,theCompanyeliminated,adjusted,rotatedandsupplementedsomeoftheprovincialandmunicipalsalespersonnel,furtherrationalizedthesalesmanagementsystemandenhancedthefightingcapacityofthesalesteam.Theauthorizedoperationwasdeeplyadvanced,whichfurthermobilizedtheenthusiasmandinitiativeofsalespersonnel.Besides,theCompanyimprovedtheperformanceappraisalmodeandworkfocus,whichpromotedsalespersonneltobeclosertothemarketandclientsandbetterservedterminalsandconsumers.Moreover,theconstructionofsalesteamand“Fundpool”withdealerswasintensified,whichalleviatedthecontradictionofinsufficientmarketinput.Fourthly,theCompanyactivelycoordinatedcontrollingshareholdersandotherrelevantparties.

Afterrepeatedcommunicationandfullargumentation,theCompanyre-determinedtheproportionoftrademarkusefeeof"张裕"(Changyu)andothertrademarks,revisedandimprovedTrademarkLicenseContractandeliminateddefectsinthecontract.Inaddition,theCompanycooperatedcloselywiththecontrollingshareholdersandwasfreelytransferredpartoftrademarksandpatentsfromthecontrollingshareholders,whichbetterguaranteedtheintegrityoftheCompany’sassetsandreducedrelatedtransactions.Fifthly,theCompanyoptimizedthelayoutofrawmaterialbases,strengthenedqualitymanagement,strivedtoreducerawmaterialcostsandimprovedproductquality.Duringthereportperiod,theCompanycarriedoutanoverallplanningfordomesticandforeignrawmaterialsupplybasesandlaidoutmediumandlong-termrawmaterialbasesinAustralia,ChileandFrance.Inaddition,theCompanyincreasedalargenumberofhigh-qualityrawmaterialbasesinXinjiang,NingxiaandYantai,strengthenedtheassessmentsofbasicmanagement,profitandkeyworktotherawmaterialbases,anduseinternalself-examination,randomsampling,third-partyinspection,flightinspectionandothermeanstostrengthenproductqualitymonitoringandcontrol.Moreover,theCompanyre-approvedsupplierlist,eliminatedunqualifiedsuppliersandcontinuouslyimprovedthequalityofrawmaterialandpackaging.Asthesemeasuresbecomeeffective,theproductqualityandreducerawmaterialcostswillbefundamentallyimproved.Sixthly,itwastostrengthenfinancialmanagementandauditsupervision,strivetoreducecapitalcostsandoperationalrisks,andimprovetheCompany’soperationalefficiency.Duringthereportperiod,afterrepeatedcommunicationandnegotiation,theCompanyfurtherreducedthebankloaninterestrateandfinancingcost.Inaddition,theCompanyusedtheSAPsystemtomonitorandallocatecashflowinrealtime,strictlyimplementedtwo-linemanagementoffinancialrevenuesandexpendituresandpaidusesystemoffunds,whichacceleratedcapitalturnover,improvedfundsuseefficiencyandreducedfundsoccupation.Moreover,theCompanyintensifiedtheauditworkofkeyareassuchastheauthenticityoffinancialrevenuesandexpenditures,channelinventory,unsalableproducts,advertisingfeesandeconomicresponsibilityofoutgoingpersonnel,andtimelyinvestigatedandpunishedillegalacts,whicheffectivelypreventedsignificantoperationalrisks.Seventhly,scientificdispatch,carefullyorganizationandclosecooperationguaranteedthegoodqualityandsmoothprogressofinvestmentprojects.Duringthereportperiod,allprojectsunderconstructionoftheCompanyprogressedasplannedandtheprojectqualitywasexcellent.Eighthly,itwastocontinueimplementingtheinternationalizationstrategyandactivelycarryoutjointventureandcooperationwithstrongforeignpeers.Duringthereportperiod,inordertoreduceoperatingcostsofasinglewineryandplayasynergisticeffect,theCompanyuseditswholly-ownedsubsidiaryinFranceFrancsChampsParticipationsSAStoestablishajointventurecompanyL&MHOLDINGStogetherwithAdviniSA’ssubsidiarySCGarriduGaiinFrance,promotingthemanagementandoperationleveloftheFrenchwinebusinesssegment.InordertoachievethebusinessobjectivessetbytheCompanyatthebeginningoftheyear,theCompanywillfocusonthefollowingworkinthesecondhalfof2019:

Firstly,thecurrentmarketsituationhasdeterminedthattheCompanymustunswervinglypromotethedevelopmentstrategyof“ThreeFocus”.TheCompanywillcontinueclassifyingproducts,compressingthenumberofproducts,centralizingsuperiorresourcesandfocusingonmarketexplorationandmarketingwork.Secondly,consideringthatthemaincontradictionforfuturedevelopmentliesinthemarket,the

Companywillcontinuefocusingontheconstructionoftwoteamsofbackbonedistributorsandfull-timesalespersonnelandfurtherestablishandimprovethesalessystemtoextendmarketcoverage.TheCompanywillalsomakedeeppenetrationintokeymarketsandstrivetoachievebreakthrough.Inaddition,themarketinginnovationwillbestrengthenedandthecommunicationsmediawillbeoptimizedinordertoimprovethemarketinglevel.Asystematicbrandmanagersystemwillalsobeestablishedandafull-timemarketingteamwillbesetupforprovidingsystemicmarketingsolutionstoboostbrandsbyvirtueofthetopoutsourcingcompaniesintheindustry.TheCompanywilltakefulladvantageandintegrateonlineadvantageousplatformandexplorethedigitalmarketingmodeinlinewithChangyutoprovideconsumerswithamoreperfectconsumerexperienceandenhanceuserstickiness.Thirdly,continuousimprovementinproductqualityisthemostfundamentalthingtowinthemarketcompetition.Whilestrictlyimplementingvariousqualitymanagementmeasures,theCompanywillestablishasystematicbrandwinemakersystem,givefullplaytothemainresponsibilityofwinemakersatalllevelsandproposeclearrequirementsofsalary,appointment,selection,promotionandexitforwinemakersatdifferentlevelsinordertostimulatewinemakers'enthusiasmandsenseofresponsibilityandpromotethesignificantimprovementinproductquality.Fourthly,theestablishmentofatalentteamthatiscompatiblewiththeCompany'sdevelopmenttothecoretoachievesustainedandrapiddevelopment.TheCompanywillfocusoncultivating60high-levelprovincialgeneralmanagersand600outstandingcitymanagerscomprehensivelyoptimizetalentechelonandstrivetomakeuptheweaknessintalents.Moreover,theCompanywillfurtheroptimizeperformanceappraisalmethods,establishandimprovevariousflexibleandefficientincentivemechanismswiththecombinationoflong-termmechanismandshort-termmechanismaswellascomplementaryadvantages,andfurtherstimulatetheCompany’svitalitytoenhancetheattractionandcentripetalforcetotheoutstandingtalents.Fifthly,theCompanywillreasonablyarrangetheproductionschedule,dowelltheconnectionbetweenproductionandsales,makefulluseofsalespeakseasonincludingMid-AutumnFestival,NationalDayandSpringFestival,increasemarketingeffortsandpromoteproductsales,providingimportantguaranteeforachievingannualsalestargets.Sixthly,theCompanywillscientificallymakeprocurementplanforrawmaterialssuchasgrapes,rationallyarrangeprocurementprogressandfullycompletetheprocurementworkofgraperawmaterial,providingcorerawmaterialswithsufficientquantity,completevarieties,highqualityandlowpriceforfuturedevelopment.Inshort,wepreliminarilyjudgethatinthesecondhalfofthisyear,withthecumulativeeffectsofvariousreformmeasuresinthepastyearstartingtoappear,althoughthedownwardpressureonthedomesticwinemarketisincreasing,thesalessituationofourcompanymayactuallygraduallygooutofthetrough,andrevenuemayalsobegintoenterthegrowthtrack.TheCompanywillstrivetocompletetheestablishedrevenuetargetofnotlowerthanCNY5.3billionatthebeginningoftheyear.Inaddition,affectedbythedoublefavorablefactorsofthenationalcuttingtaxesandfeespoliciesandthecontrollingshareholder'soffsetoftrademarkusefee,theCompany'sprofitlevelmaybeimprovedcomparedwiththesameperiodoflastyear.

2.AnalysisofmainbusinessPleasereferto“1.Summarization”in“ManagementDiscussionandAnalysis”.Changeinmajorfinancialdataonyear-on-yearbasis

Unit:CNY

InthereportperiodInthesameperiodoflastyearMoreorless(%)Reasonforchanges
Operatingrevenue2,558,274,7852,828,230,064-9.55%Mainlyowingtotheyear-on-yeardecreaseinsalesvolume
Operatingcosts936,252,225974,557,292-3.93%Mainlyowingtotheyear-on-yearincreaseinthepriceofgrapematerial
Salesexpenses591,970,801710,659,033-16.70%Mainlyowingtotheyear-on-yeardecreaseinmarketingexpenseandtrademarkusefee
Administrationexpense155,552,312157,964,882-1.53%Nomajorchange
Financialexpense8,789,58313,085,942-32.83%Mainlyowingtotheyear-on-yeardecreaseininterestexpenditure
Incometaxexpense210,281,578211,979,735-0.80%Nomajorchange
Research&DevelopmentInvestment2,706,8112,127,00627.26%Mainlyowingtotheincreasedinvestmentinscientificresearch
Netcashflowfromoperatingactivities499,476,006552,753,472-9.64%Mainlyowingtothedecreaseinreceivedcashfromsellingproductsandprovidinglaborservice
Netcashflowfrominvestmentactivities-114,534,608-291,217,54860.67%Mainlyowingtothedecreaseinthecashpaidforpurchasingfixedtermdepositandthenetcashpaidbysubsidiariesandotherbusinessunits
Netcashflowfromfinancingactivities-18,128,357-6,350,537-185.46%Mainlyowingtotheyear-on-yeardecreaseinreceivedfixedtermdepositusedforpledgeoflong-termloan
Netincreasedamountofcashandcashequivalents366,866,743247,781,18848.06%Mainlyowingtotheyear-on-yeardecreaseinthecashoutflowofinvestmentactivities

WhetherthereisanymajorchangefortheCompany’sprofitstructureorprofitsourceduringthereportperiod

□Available?NotavailableThereisnomajorchangefortheCompany’sprofitstructureorprofitsourceduringthereportperiod.Structureofmainbusinesses

Unit:CNY

ItemOperatingrevenueOperatingcostGrossprofitrate(%)Increaseordecreaseofoperatingrevenueoverthesameperiodoflastyear(%)Increaseordecreaseofoperatingcostoverthesameperiodoflastyear(%)Increaseordecreaseofgrossprofitrateoverthesameperiodoflastyear
BySector
Manufacturingofliquorandalcoholicbeverages2,558,274,785936,252,22563.40%-9.55%-3.93%-2.14%
ByProduct
Wine1,928,554,268680,125,49664.73%-13.01%-9.65%-1.31%
Brandy563,451,068229,703,17559.23%3.33%18.50%-5.22%
Tourism42,604,38212,307,69971.11%-7.44%-12.47%1.66%
Other23,665,06714,115,85540.35%19.01%1.95%9.98%
Total2,558,274,785936,252,22563.40%-9.55%-3.93%-2.14%
ByRegion
Domesticbusiness2,330,780,056791,113,86766.06%-9.92%-2.36%-2.63%
Overseasbusiness227,494,729145,138,35836.20%-5.50%-11.69%4.47%
Total2,558,274,785936,252,22563.40%-9.55%-3.93%-2.14%

3.Analysistonon-mainbusiness

□Available?Notavailable

4.Assetsandliabilitiessituation

1)Majorchangesinassets

Unit:CNY

TheendofthisreportperiodTheendofthesameperiodoflastyearProportionincreaseordecrease(%)Explanationformajorchanges
AmountProportioninthetotalassets(%)AmountProportioninthetotalassets(%)
Monetaryfunds1,848,632,95313.81%1,683,038,45312.91%0.90%Nomajorchange
Accountreceivable186,131,1921.39%243,413,0921.87%-0.48%Nomajorchange
Inventory2,606,781,43619.48%2,338,925,43217.94%1.54%Mainlyowingtotheyear-on-yearincreaseinwork-in-processincludingbulkwineattheendofreportperiod
Investmentrealestate30,560,4700.23%17,877,3790.14%0.09%Nomajorchange
Long-termequityinvestment-----Nomajorchange
Fixedassets5,684,612,65342.48%5,457,575,67741.86%0.62%Mainlyowingtothetransferofconstructioninprocessduringthereportperiod
Constructioninprocess789,872,3735.90%1,015,914,7537.79%-1.89%Mainlyowingtothetransferofconstructioninprocessintofixedassetsduringthereportperiod
Short-termborrowing678,170,6675.07%750,454,6765.76%-0.69%Mainlyowingtotherepaymentofshort-termborrowingduringthereportperiod
Long-termloan165,949,2501.24%153,965,1911.18%0.06%Nomajorchange

2)Measuringassetsandliabilitiesatfairvalue

□Available?Notavailable

3)AssetsrightsrestrictedsituationuptotheendofreportperiodNo

5.Investmentsituationanalysis

1)Overallsituation?Available□Notavailable

Amountofinvestmentduringthereportperiod(CNY)Amountofinvestmentinthesameperiodoflastyear(CNY)Extentofchange
210,000,000.00210,931,400.000.44%

2)Situationofmajorequityinvestmentsacquiredduringthereportperiod

□Available?Notavailable

3)Situationofongoingmajornon-equityinvestmentsduringthereportperiod?Available□Notavailable

Unit:CNY

ProjectnameInvestmentmodeWhetheritbelongstofixedassetsinvestmentInvolvedindustryInvestmentamountduringthereportperiodAccumulatedactualinvestmentamountuptotheendofthereportperiodCapitalsourceProcessofprojectEstimatedincomeAccumulatedrealizedincomeuptotheendofthereportperiodReasonsforunreachedplanningscheduleandestimatedincomeDisclosuredateDisclosureindex
ConstructionprojectofYantaiChangyuInternationalWineCityblendingandcoolingSelf-constructedYesLiquorandalcoholicbeverageindustry110,000,000.001,486,114,100.00Ownedfund100%--Nodirectincome2019.04.20PleaserefertoAnnouncementonResolutionoftheSeventhSessionBoardofDirectors10thMeeting
centerdisclosedonthewebsiteofCNINFO(www.cninfo.com.cn)(announcementnumber:2019-Temporary06)
ConstructionprojectofYantaiChangyuInternationalWineCitybottlingcenterSelf-constructedYesLiquorandalcoholicbeverageindustry40,000,000.00953,200,000.00Ownedfund100%--Nodirectincome2019.04.20
ConstructionprojectofYantaiChangyuInternationalWineCitylogisticscenterSelf-constructedYesLiquorandalcoholicbeverageindustry43,400,000.00459,907,200.00Ownedfund100%--Nodirectincome2019.04.20
ConstructionprojectofChangyugrapeandwineresearchinstituteSelf-constructedYesLiquorandalcoholicbeverageindustry6,000,000.00122,974,800.00Ownedfund85%--Notputintooperation2019.04.20
ConstructionprojectoftreasurewinechateauSelf-constructedYesLiquorandalcoholicbeverageindustry0.00128,820,000.00Ownedfund70%--Notputintooperation2019.04.20
ConstructionSelf-YesLiquorand0.00147,329,000.00Owned100%--Justputinto2019.04.20
projectofKoyabrandychateauconstructedalcoholicbeverageindustryfundoperationandnoincome
OakBarrelProcurementProjectSelf-constructedYesLiquorandalcoholicbeverageindustry7,000,000.0013,432,000.00Ownedfund30%--Nodirectincome2019.04.20
ConstructionprojectofindustrialproductionSAPinformationSelf-constructedYesLiquorandalcoholicbeverageindustry600,000.0038,450,000.00Ownedfund70%--Notcompleted2019.04.20
ProcurementprojectofautomaticuniblocequipmentforYantaichateauSelf-constructedYesLiquorandalcoholicbeverageindustry00Ownedfund0.00%--Notcompleted2019.04.20
Projectof“Constanttemperatureandhumidity”systeminundergroundcellarofResearch&DevelopmentCenterSelf-constructedYesLiquorandalcoholicbeverageindustry3,000,000.003,000,000.00Ownedfund80%--Notcompleted2019.04.20
ConstructionprojectofchangyusuppliermanagementplatformandequipmentmanagementplatformSelf-constructedYesLiquorandalcoholicbeverageindustry0.000.00Ownedfund0%--NotCompleted2019.04.20
Total210,000,000.003,353,227,100.000.000.00------

4)Financialassetsinvestment

(1)Securityinvestment□Available?NotavailableThereisnosecurityinvestmentfortheCompanyduringthereportperiod.

(2)Derivativeinvestment□Available?NotavailableThereisnoderivativeinvestmentfortheCompanyduringthereportperiod.

6.Saleofmajorassetsandequities

1)Saleofmajorassets□Available?Notavailable

Thereisnosaleofmajorassetsduringthereportperiod.

2)Saleofmajorequity□Available?Notavailable

7.Analysistothemajorholdingandjointstockcompanies?Available□NotavailableSituationofmainsubsidiariesaswellasjointstockcompaniesaffectingover10%oftheCompany’snetprofit

Unit:CNY

CompanynameCompanytypeMainbusinessRegisteredcapitalTotalassetsNetassetOperationrevenueOperationprofitNetProfit
ChateauChangyuCastelCo.,Ltd.YANAISubsidiaryDevelopment,productionandsalesofwineandsparklingwineaswellasthetourismserviceUSD5million240,824,95477,648,04824,470,842-2,182,761-2,189,871
ChateauChangyuAFIPGlobalWineCo.,Ltd.SubsidiaryDevelopment,productionandsalesofbrandyandwineCNY642.75million686,690,442640,778,17590,339,52617,401,73712,711,985
ChateauLiaoningChangyuIceWineCo.,Ltd.SubsidiaryProductionoficewineCNY59.6873million84,854,20753,126,82819,763,387-1,049,804-1,986,710
HaciendaYVinedosMarquesDelAtrio,SLSubsidiaryProductionandmanagementofwineandotherliquorsEUR2.385732million500,554,860123,548,662129,064,457959,4231,859,381
IndomitaWineCompanyChile,SpASubsidiaryProductionandmanagementofwineandotherliquorsUSD47.19million505,803,310361,957,11486,818,8382,477,6973,762,504
KilikanoonEstateSubsidiaryProductionandmanagementofwineandAUD6.529221147,071,882,030,85522,852,809-2,587,400-1,509,147
PtyLtdotherliquorsmillion45

Acquisitionanddisposalofsubsidiariesduringthereportperiod?Available□Notavailable

CompanynameModeofAcquisitionanddisposalofsubsidiariesduringthereportperiodEffectonoverallproductionandmanagementaswellasperformance
L&MHOLDINGSEstablishmentbyjointventureAsanewly-establishedcompany,thiscompanyhasverylittleinfluenceinoverallproductionandmanagementaswellasperformance.
ChateauLiversanJointventurepartnerusesChateauLiversanascontributionofcapitalThischateaucurrentlyhasverylittleinfluenceinoverallproductionandmanagementaswellasperformance.

ExplanationformainholdingandjointstockcompaniesDuringthereportperiod,ChateauChangyuCastelCo.,Ltd.YANAIandChateauLiaoningChangyuIceWineCo.,Ltd.incurredoperatinglosses,mainlybecausethetwocompanies,asproductionunits,soldtheirproductstotheCompany’sinternalsalesunitsattheinternalsettlementpricedeterminedbytheCompany,whichcouldnottrulyreflecttheprofitabilityofthetwocompanies’products.Ifitincludestheprofitgeneratedbytheinternalsalesunitssellingproductstoexternalcustomers,theproductsproducedbythesetwocompaniesareprofitable.Duringthereportperiod,KilikanoonEstatePtyLtdrealizedthenetprofitofCNY550thousandforitsownproductionandmanagement,butafterconductingtheamortizationofpremiumatthetimeofacquisitioninaccordancewithaccountingpolicy,thelosswasCNY1.5million.

8.SituationofstructuredsubjectcontrolledbytheCompany

□Available?Notavailable

9.ForecastfortheoperatingperformancefromJanuarytoSeptemberof2019Cautionandexplanationforthepredictionthatthecumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodcouldbeinalossortherewillbeinagreatchangecomparedwiththesameperiodoflastyear.

□Available?Notavailable

10.RisksfacedwithbytheCompanyandresponsemeasures

(1)RisksinpricefluctuationofrawmaterialsGrapesaretheCompany’smainrawmaterials.Thegrape’syieldandqualityareaffectedtoacertainextentbythenaturalfactorssuchasdrought,wind,rain,frostandsnow.TheseforcemajeurefactorsgreatlyinfluencetheprocurementquantityandpriceofrawmaterialsandaddtheuncertaintytotheCompany’sproductionandoperation.Therefore,theCompanywilllowerthefluctuationrisksofgrapequalityandpricebymeansofstabilizingtheareaofself-rungrapebases,strengtheningthemanagementofgrapebasesandoptimizingthelayoutofgrapebases.

(2)RisksinuncertaintyofmarketinputandoutputTocopewithincreasinglyfiercemarketcompetitionandtomeettheneedsformarketdevelopment,theCompanywillmaintaincertainmarketinput.Theproportionofsalesexpenseintheoperationrevenueisalsohigh.ThesituationofinputandoutputwillaffecttheCompany’sbusinessperformancetoagreatextentandtheremightoccurtheriskthatpartialinputmaynotreachtheexpectations.Therefore,theCompanywillstrengthenmarketresearchandanalysis,enhancemarketforecastaccuracyandcontinueperfectingtheinput-outputevaluationsystemtoensurethemarketinputtoreachtheexpectations.

(3)RisksinproducttransportationTheCompany’sproductsarefragileandsoldtoallovertheworldmostlybyseatransportation,railwaytransportationandroadtransportation.Thepeakseasonofsalesisusuallyincoldwinterandisclosetothespringfestivalwhenthereisagreatneedinthemarket.However,atthistime,thedomestictransportationdepartmentsmaybeoverloadedbytheflowofpeopleandlogistics,causingseriousshortageoftransportationcapacity.Inadditiontonaturalandhumanfactorssuchassnow,iceandtrafficaccidentsandsoon,thereisapossibilitythatitisdifficulttosafelyandtimelytransportproductstothemarket,thusfacingthepotentialriskofmissingsalespeakseason.Therefore,thecompanywillstrivetoreducesuchrisksbydoingwellsalesforecastsandtheconnectionbetweenproductionandsales,rationallyarrangingproductionandtransportationroutesandreasonablyincreasingoff-siteinventorybeforethecomingofpeakseasonandsoon.

(4)RisksininvestmentfaultsAccordingtotheprogramme,theCompanyhasbasicallycompletedtheproductionlayoutathomeandabroad.TheinvestmentamountofYantaiChangyuIndustrialPark(inotherwordsYantaiChangyuInternationalWineCity)islarge,buttherearemanyuncertaintiesindomesticwinemarket,whichmaylengthentheinvestmentrecoveryperiod.Moreover,theintegrationandmanagementofoverseasM&Aprojectsaredifficultanditmightalsobedifficultforsomeindividualprojectstoobtaintheexpectedinvestmentincomeowingtobeingaffectedbyvariousfactors.Therefore,theCompanywillmakesufficientdemonstrationandscientificdecisiononinvestmentprojectsandstrivetoreduceandavoidinvestmentrisks.

V.Majorissues

1.InformationfortheShareholders’MeetingandInterimShareholders’Meetingheldduringthereportperiod

1)InformationfortheShareholders’Meetingduringthereportperiod

SessionMeetingtypeParticipationratioofinvestorsConveningdateDisclosuredateDisclosureIndex
2018AnnualShareholders’MeetingAnnualshareholders’meeting58.85%2019.05.172019.05.18http://www.cninfo.com.cnAnnouncementonResolutionof2018AnnualShareholders’Meeting(Announcementnumber:2019-Temporary25)
FirstInterimShareholders’Meetingin2019Interimshareholders’meeting60.89%2019.07.022019.07.03http://www.cninfo.com.cnAnnouncementonResolutionofFirstInterimShareholders’Meetingin2019(Announcementnumber:2019-Temporary37)

2)RequestforconveningInterimShareholders’Meetingbypriorityshareholdersowingrecoveredvotingright□Available?Notavailable

2.Situationofprofitdistributionandcapitalizationofcapitalreserveintosharecapitalduringthereportperiod

□Available?NotavailableTheCompanyplansnottodistributecashdividendsorgivebonussharesormakecapitalizationofcapitalreserveintosharecapital.

3.CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirersandtheCompanyandotherrelatedcommitmentpartieshaveimplementedduringthereportperiodandhavenotimplementeduptotheendofthereportperiod?Available□Notavailable

CommitmentsCommitmentpartyCommitmenttypeCommitmentcontentCommitmenttimeCommitmentperiodImplementation
Commitmentsatequityreformation
Commitmentsmadeinacquisitionreportorequitychangereport
Commitmentsatassetrestructuring
CommitmentsattheinitialpublicofferingorrefinancingYantaiChangyuGroupCo.Ltd.SolvehorizontalcompetitionNon-horizontalcompetitionMay18th,1997ForeverHasbeenperforming
YantaiChangyuGroupCo.,Ltd.CleartheuseoftrademarkusefeeAccordingtoTrademarkLicenseContract,thetrademarkusefeeofChangyuandothertrademarkspaidbythisCompanytoYantaiChangyuGroupCo.,LtdeveryyearismainlyusedforadvertisingChangyuandothertrademarksandthecontractualproductsbyYantaiChangyuGroupCo.,Ltd.May18th,1997ForeverAccordingtoTrademarkLicenseContract,thetrademarkusefeeannuallychargedbyYantaiChangyuGroupCo.,Ltd.shallbemainlyusedtopublicizetrademarksincludingChagnyuandcontractualproducts.Except2013to2017duringwhichthecommitmentwasnotstrictlyperformed,YantaiChangyuGroupCo.,Ltd.hasbeenperformingthecommitment.
Equityincentivecommitments
CommitmentsatmiddleandsmallshareholdersoftheCompany
CommitmentundertimelyimplementationornotNo
DetailedexplanationforspecificreasonsofunimplementedcommitmentaswellasnextworkplanifcommitmentisnotcompletedinthecommitmentperiodAccordingtotheTrademarkLicenseContract(hereafterreferredtoas“theContract”),ChangyuGrouppromisesthatthetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksandcontractualproducts.Butabove-mentioned‘mainly’isnotaspecificnumber,whichiseasytocausedivergenceduetodifferentunderstandingandleadstoproblemappearanceduringtheimplementationprocess.From2013to2017,ChangyuGroupcollectedatotalofCNY420,883,902trademarkusefee,ofwhich51%wasusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY214,650,790.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY50,025,181,withabalanceofCNY164,625,609.In2018and2019,thetrademarkusefeecollectedof2017and2018isCNY155,623,907,ofwhich51%isusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY79,368,193.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY12,225,187,withabalanceofCNY67,143,006.

4.TheappointmentanddismissalofcertifiedpublicaccountantsWhetherthesemi-annualreporthasbeenaudited

□Yes?NoThesemi-annualreporthasnotbeenaudited.

5.Explanationfromtheboardofdirectorsandtheboardofsupervisorsforthe“Non-standardAuditReport”duringthisreportperiod□Available?Notavailable

6.Explanationfromtheboardofdirectorsforthe“Non-standardAuditReport”oflastyear□Available?Notavailable

7.Issuesrelatedwithbankruptcyreorganization

□Available?NotavailableTherearenorelatedissuesofbankruptcyreorganizationhappenedattheendofthereportperiod.

8.LitigationIssueMateriallitigationandarbitration

□Available?Notavailable

Therearenomateriallitigationandarbitrationduringthereportperiod.OtherLitigationIssue

□Available?Notavailable

9.Penaltyandrectification?Available?Notavailable

NameTypeReasonInvestigationandPunishmentConclusionDisclosuredateDisclosureIndex
YantaiChangyuPioneerWineCo.,Ltd.OtherYantaiChangyuGroupCo.,Ltdhasnotstrictlyfulfilledthecommitment“AnnualtrademarkusefeeismainlyusedtopublicizetrademarksincludingChangyuandcontractualproducts”.Other-2019.04.04http://www.cninfo.com.cnRectificationReportofPersonInChargesuchasYantaiChangyuPioneerWineCo.,Litd.EtconDecisionofAdministrativeSupervisionMeasuresissuedbyChinaSecuritiesRegulatoryCommissionShandongRegulatoryAuthority(Announcementnumber:2019-Temporary05)
YantaiChangyuGroupCo.,Ltd.ControllingshareholderOther-2019.04.04

Theexplanationofrectificationsituation

?Available?NotavailableDuringtheperiod,thisCompany,YantaiChangyuGroupCo.,Ltd.andotherrelatedpersoninchargehavereceivedDecisionofAdministrativeSupervisionMeasuresissuedbyChinaSecuritiesRegulatoryCommissionShandongRegulatoryAuthority,andtheyhavemaderectificationaccordingtotherequirement.

10.CreditoftheCompany,itscontrollingshareholderandactualcontroller?Available?Notavailable

11.ImplementationoftheCompany’sequityinventiveplan,employeestockownershipplanorotheremployeeincentivemeasures□Available?NotavailableTherearenoimplementationoftheCompany’sequityinventiveplan,employeestockownershipplanandotheremployeeincentivemeasuresduringthereportperiod.

12.Majorrelatedtransactions

1)Relatedtransactionsinrelationtoroutineoperations?Available□Notavailable

RelatedpartyRelationshipTypeContentPricingprinciplePriceAmount(CNY‘0000)ProportioninsimilartransactionsApprovedtransactionquota(CNY‘0000)WhetherexceedingapprovedtransactionquotaClearingformAvailablemarketpriceofsimilartransactionsDisclosuredateDisclosureindex
YantaiShenmaPackagingCo.,Ltd.ControlledbythesameparentcompanyPurchaseandmanufacturingconsignmentPurchaseandmanufacturingconsignmentofpackagingmaterialsContractualpricingDeterminedbyagreement7,49710.44%17,500NoCashNoApril20th,2019-
Total--7,497-17,500-----
DetailsinformationaboutthereturnoflargesalesNo
Actualperformanceoftheestimatedtotalamountfordailyrelatedtransactionsthatwilloccurduringthisreportperiodbycategory(ifhave)No
Reasonforthebiggerdeferencebetweentransactionpriceandmarketreferenceprice(ifapplicable)Notavailable

2)Relatedtransactionsinrelationtoacquisitionandsalesofassetsorequity

□Available?NotavailableTherearenorelatedtransactionsinrelationtoacquisitionorsalesofassetsorequityduringthereportperiod.

3)Relatedtransactionsinrelationtocommonforeigninvestment

□Available?NotavailableTherearenorelatedtransactionsinrelationtocommonforeigninvestmentduringthereportperiod.

4)Relatedcreditanddebtdealings?Available?NotavailableTherearenorelatedcreditanddebtdealingsduringthereportperiod.

5)Othermajorrelatedtransactions□Available?NotavailableTherearenoothermajorrelatedtransactionsduringthereportperiod.

13.Non-operatingcapitaloccupyingoftheCompanybycontrollingshareholderanditsrelatedparties

□Available?NotavailableThereisnonon-operatingcapitaloccupyingoftheCompanybycontrollingshareholderanditsrelatedpartiesduringthereportperiod.

14.Majorcontractsandexecutioncondition

1)Trusteeship,contractandleaseissues

(1)Trusteeshipsituation□Available?NotavailableThereisnotrusteeshipsituationduringthereportperiod.

(2)Contractsituation?Available□NotavailableExplanationforcontractsituationFortheCompany’scontractoperationsituationduringthereportperiod,pleasereferto‘‘23.Otherpayables’’inNote7‘‘Notesonconsolidatedfinancialstatement’’inthefinancialreportofthisreport.

ProjectwhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod

□Available?NotavailableTherearenocontractprojectswhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod.

(3)Leasesituation?Available□NotavailableExplanationforleasesituationOnJanuary1

st,2017,theCompanyrenewedtheSpaceLeaseAgreementwiththecontrollingshareholderYantaiChangyuGroupCompanyLimited.TheCompanyleasedthespacewith15196.94squaremeterslocatingatNo.174ShihuiyaoRoad,ZhifuDistrict,YantaiCity.TherentperyearisCNY1.4645millionwitharentalperiodof5yearsfromJanuary1

st,2017toDecember31

st,2021.OnJanuary1

st,2017,theCompany’ssubordinateSales&MarketingCo.ofYantaiChangyuPioneerWineCompanyLimitedBrandySalesDivisionrenewedtheSpaceLeaseAgreementwiththecontrollingshareholderYantaiChangyuGroupCompanyLimited,leasingthespacewith42552.83squaremeterslocatingatNo.1JichangRoad,ZhifuDistrict,YantaiCityandthespacewith3038squaremeterslocatingat56DamaRoad,ZhifuDistrict,YantaiCity,whichareallunderthenameofcontrollingshareholder.TherentofabovespacesperyearisCNY4.3935millionwitharentalperiodof5yearsfromJanuary1

st

,2017toDecember31

st,2021.OnJuly1

st,2017,thisCompanysignedahouse-leasingcontractwithYantaiShenmaPackagingCompanyLimited.Accordingtothiscontract,sinceJuly1

st

,2017,thisCompanyleasedpropertytoYantaiShenmaPackagingCompanyLimitedforabusinesspurposewiththeannualrentofCNY1,626,880.ThiscontractexpiresonJune30

th

,2022.ProjectwhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod□Available?NotavailableTherearenoleaseprojectswhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod.

2)Majorguarantee?Available□Notavailable

(1)Guaranteesituation

Unit:CNY’0000

ExternalguaranteeoftheCompanyanditssubsidiaries(excludingguaranteetosubsidiaries)
GuaranteeobjectnameDisclosuredateofrelatedannouncementaboutguaranteequotaGuaranteequotaActualdateofoccurrence(dateofagreement)ActualguaranteeamountGuaranteetypeGuaranteePeriodWhetherornotcompleteimplementationWhetherornotbelongtorelated-partyguarantee
YantaiEconomicandTechnologicalDevelopmentZoneManagementCouncil2016.12.2234,1602016.12.2134,160Mortgage;Pledge10yearsNoNo
Totaloftheexternalguaranteequotaapprovedduringthereportperiod(A1)0Totaloftheactualexternalguaranteeamountduringthereportperiod(A2)0
Totaloftheexternalguaranteequotaapprovedattheendofthereportperiod(A3)34,160Balanceoftheactualexternalguaranteeattheendofthereportperiod(A4)34,160
GuaranteesituationsbetweentheCompanyandsubsidiaries
GuaranteeobjectnameDisclosuredateofrelatedannouncementaboutguaranteequotaGuaranteequotaActualdateofoccurrence(dateofagreement)ActualguaranteeamountGuaranteetypeGuaranteePeriodWhetherornotcompleteimplementationWhetherornotbelongtorelated-partyguarantee
Sales&MarketingCompanyofYantaiChangyuPioneerWineCompanyLimited2016.10.3110,0002016.11.0510,000Jointliabilityassurance2yearsNoYes
YantaiChangyuPioneer2016.12.2211,9842016.12.2111,984Mortgage;10yearsNoYes
WineCompanyLimitedPledge
YantaiChangyuWineResearchandDevelopmentCompanyLimited2016.12.2272,1762016.12.2172,176Jointliabilityassurance;Mortgage10yearsNoYes
KilikanoonEstatePtyLtd2017.12.127,1002018.01.097,100Jointliabilityassurance1yearNoYes
Totaloftheapprovedguaranteequotatosubsidiariesduringthereportperiod(B1)0Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(B2)0
Totaloftheapprovedguaranteequotatosubsidiariesattheendofthereportperiod(B3)89,276Balanceoftheactualguaranteeforsubsidiariesattheendofthereportperiod(B4)89,276
Guaranteesituationsbetweensubsidiaries
GuaranteeobjectnameDisclosuredateofrelatedannouncementaboutguaranteequotaGuaranteequotaActualdateofoccurrence(dateofagreement)ActualguaranteeamountGuaranteetypeGuaranteePeriodWhetherornotcompleteimplementationWhetherornotbelongtorelated-partyguarantee
HaciendaYVinedosMarquesDelAtrio.SL2016.04.293,5022015.10.083,502MortgageLong-termNoNo
IndomitaWineCompanyChile,SpA2018.04.231,9862018.04.201,986MortgageLong-termNoNo
Totaloftheapprovedguaranteequotato5,976Totaloftheactualguaranteeamountforsubsidiariesduringthereport0
subsidiariesduringthereportperiod(C1)period(C2)
Totaloftheapprovedguaranteequotatosubsidiariesattheendofthereportperiod(C3)11,464Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(C4)5,488
TotalguaranteeamountoftheCompany(Totalofabovethreemajoritems)
Totaloftheapprovedguaranteequotaduringthereportperiod(A1+B1+C1)5,976Totaloftheactualguaranteeamountduringthereportperiod(A2+B2+C2)0
Totaloftheapprovedguaranteequotaattheendofthereportperiod(A3+B3+C3)134,900Balanceoftheactualguaranteebytheendofthereportperiod(A4+B4+C4)128,924
Theproportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’snetasset13.17%
Among:
Balanceofguaranteeforshareholders,actualcontrollersandtheirrelatedparties(D)0
Balanceofdirectorindirectdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratioismorethan70%(E)0
Amountofthepartintotalguaranteeamountthatexceed50%ofnetassets(F)0
Totalamountoftheabove-mentionedthreeitems(D+E+F)0
Explanationforundueguaranteesthatmightbearjointandseveralresponsibilitiesforclearingthedebtsduringthereportperiod(ifhave)No
Explanationforviolatingdueprocesstoprovideexternalguarantee(ifhave)No

Explanationonspecificsituationsofadaptingguaranteebycomplexmethods

No.

(2)Illegalexternalguarantee

□Available?NotavailableThereisnoillegalguaranteeduringthereportperiod.

3)Othermajorcontracts

□Available?NotavailableTherearenootherimportantcontractsduringthereportperiod.

15.Situationforsocialresponsibility

1)MajorenvironmentalsituationWhetherornotthelistedcompanyanditssubsidiariesbelongtokeypollutantdischargingunitsstipulatedbythestateenvironmentalprotectiondepartment.Notapplicable.No

2)Situationforcarryingoutsocialresponsibilityoftargetedpovertyalleviation

(1)TargetedpovertyalleviationplanTheCompanyhasreachedthemutualagreementwiththegovernmentofZhuqiaoTownandthevillagecommitteeofDalangyaVillagetoestablishacooperativespecializedforgrape.Itplanstohelptoconducttheconstructionof100muofvineyardperyearfrom2019to2021withatotalareaof300muandalsotosigngrapepurchasecontractinordertohelplocalvillagerstogetridofpovertyandbecomebetteroff.

(2)Summaryofsemi-annualtargetedpovertyalleviationTheCompanyintendstohelpfarmersgrowtheirincomebyestablishingvineyardstogetherwithfarmers.

(3)EffectivenessoftargetedpovertyalleviationTheCompanyhasestablishedvineyardswithfarmersasplanned,whichisprogressingsmoothlynow.

(4)SubsequentplanfortargetedpovertyalleviationNo

16.Explanationforothermajorissues□Available?NotavailableTherearenoothermajorissuesneedtobeexplainedduringthereportperiod.

17.MajorissuesoftheCompany’ssubsidiaries

□Available?Notavailable

VI.ChangesinSharesandtheShareholders’Situation

1.Changesinshares

1)Changesinshares

Unit:share

AmountbeforethischangeChangeatthistime(+,-)Amountafterthischange
AmountPercentage%IssuingnewshareDistributebonusshareTransfercapitalreservetosharecapitalothersSubtotalAmountPercentage%
1.Unrestrictedshares685,464,000100%685,464,000100%
(1)Ashares453,460,80066.15%453,460,80066.15%
(2)Bshares232,003,20033.85%232,003,20033.85%
2.Totalshares685,464,000100%685,464,000100%

Reasonofchangesinshares□Available?NotavailableApprovalofchangesinshares

□Available?NotavailableOwnershiptransferofchangesinshares

□Available?NotavailableImplementationprogressofsharebuy-back

□Available?Notavailable

Implementationprogressofreducingrepurchasedsharesbythewayofcentralizedbidding

□Available?NotavailableTheinfluenceofchangesinsharesonfinancialindicatorsinthemostrecentyearandthemostrecentreportperiod,suchasbasicearningspershare,dilutedearningspershareandnetassetpershareattributabletotheCompany’scommonshareholdersandsoon

□Available?NotavailableOthercontentsthattheCompanythinksnecessaryorsecuritiesregulatorydepartmentsasktodisclose.

□Available?Notavailable

2)Changesinrestrictedshares

□Available?Notavailable

2.Securitiesissuanceandlistingsituation

□Available?Notavailable

3.SituationforthenumberofshareholdersandshareholdingsoftheCompany

Unit:

share

Totalcommonshareholdersattheendofreportperiod42,531Totalnumberofpreferredshareholderrecoveringvotingpowerattheendofreportperiod(ifhave)(refertonote8)0
Shareholdersholdingmorethan5%orshareholdingsofthetop10commonshareholders
NameofShareholderCharacterofshareholderShareholdingratioCommonshareheldattheendofthereportperiodChangesduringthereportperiodNumberofrestrictedcommonshareNumberofunrestrictedcommonsharePledgedorfrozen
SharestatusAmount
YANTAIDomestic50.40%345,473,85600345,473,856
CHANGYUGROUPCO.LTD.non-state-ownedlegalperson
GAOLINGFUND,L.P.Foreignlegalperson3.08%21,090,2190021,090,219
CHINASECURITIESFINANCECORPState-ownedlegalperson2.25%15,440,7940015,440,794
BBHBOSS/AFIDELITYFD-CHINAFOCUSFDForeignlegalperson2.22%15,241,8260015,241,826
SHENWANHONGYUANSECURITIES(HONGKONG)LIMITEDForeignlegalperson1.28%8,798,23345057008,798,233
FIDELITYPURITANTRUST:FIDELITYSERIESINTRINSICOPPORTUNITIESFUNDForeignlegalperson0.93%6,350,76225000006,350,762
GUOTAIJUNANSECURITIES(HONGKONG)LIMITEDForeignlegalperson0.76%5,229,01618550905,229,016
CENTRALHUIJINASSETMANAGEMENTLTD.State-ownedlegalperson0.69%4,761,200004,761,200
VANGUARDEMERGINGMARKETSSTOCKINDEXFUNDForeignlegalperson0.55%3,788,487003,788,487
FIDELITYCHINASPECIALSITUATIONSPLCForeignlegalperson0.55%3,779,202003,779,202
SituationofStrategicinvestorsorgenerallegalpersonbecomingthetop10shareholdersowingtoplacingofnewshares(ifhave)(seenote3)No
Explanationforaboveshareholders’associatedrelationshipandconcertedactionAmongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporconcertedactionrelationshipwiththeother9circulatingshareholders,andtherelationshipamongtheothershareholdersisunknown.
Shareholdingsoftop10commonshareholderswithunrestrictedshares
NameofShareholdersNumberofunrestrictedsharesheldattheendofthereportperiodTypeofshare
TypeofshareAmount
YANTAICHANGYUGROUPCO.LTD.345,473,856A345,473,856
GAOLINGFUND,L.P.21,090,219B21,090,219
CHINASECURITIESFINANCECORP15,440,794A15,440,794
BBHBOSS/AFIDELITYFD-CHINAFOCUSFD15,241,826B15,241,826
SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED8,798,233B8,798,233
FIDELITYPURITANTRUST:FIDELITYSERIESINTRINSICOPPORTUNITIESFUND6,350,762B6,350,762
GUOTAIJUNANSECURITIES(HONGKONG)LIMITED5,229,016B5,229,016
CENTRALHUIJINASSETMANAGEMENTLTD.4,761,200A4,761,200
VANGUARDEMERGINGMARKETSSTOCKINDEXFUND3,788,487B3,788,487
FIDELITYCHINASPECIALSITUATIONSPLC3,779,202B3,779,202
Explanationforassociatedrelationshipandconcertedactionamongtop10commonshareholderswithunrestrictedsharesandbetweentop10commonshareholderswithunrestrictedsharesandtop10commonshareholdersAmongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporconcertedactionrelationshipwiththeother9circulatingshareholders,andtherelationshipamongtheothershareholdersisunknown.
Explanationfortop10commonshareholderswhoareinvolvedinsecuritiesmargintradingbusiness(ifhave)(seenote4)Thetop10shareholdersarenotinvolvedinfsecuritiesmargintradingbusiness.

WhetherornottheCompany’stop10commonshareholdersandtop10shareholderswithunrestrictedsharestakeagreedrepurchasetransactionduringthereportperiod

□Yes?NoThereisnoagreedrepurchasetransactiontakenbytheCompany’stop10commonshareholdersandtop10shareholderswithunrestrictedsharesduringthereportperiod.

4.ChangesincontrollingshareholdersoractualcontrollersChangesinthecontrollingshareholdersduringthereportperiod□Available?NotavailableThereisnoanychangeinthecontrollingshareholdersduringthereportperiod.Changesintheactualcontrollersduringthereportperiod

□Available?NotavailableThereisnoanychangeintheactualcontrollersduringthereportperiod.

VII.RelatedSituationofPreferredShares□Available?NotavailableTherearenopreferredsharesduringthereportperiod.

VIII.SituationforDirectors,Supervisors,SeniorExecutives

1.Changesinshareholdingsofdirectors,supervisorsandseniorexecutives□Available?NotavailableThereisnochangeinshareholdingsofdirectors,supervisorsandseniorexecutivesduringthereportperiod.Fordetails,pleasereferto2018AnnualReport

2.PersonnelchangesintheCompany'sdirectors,supervisorsandseniorexecutives?Available□Notavailable

NamePositionTypeDateReason
SunLiqiangDirectorLeavingthepostowingtoexpirationoftenure2019.05.17Retirement
QuWeiminDirectorLeavingthepostowingtoexpirationoftenure2019.05.17Retirement
ZhangMingDirectorLeavingthepostowingtoexpirationoftenure2019.05.17Expirationoftenureandjobchange
AntonioAppignaniDirectorLeavingthepostowingtoexpirationoftenure2019.05.17Expirationoftenure
WangShigangIndependentdirectorLeavingthepostowingtoexpirationoftenure2019.05.17Expirationoftenure
LiuYanIndependentdirectorLeavingthepostowingtoexpirationoftenure2019.05.17Expirationoftenure
ChenDianxinDirectorElected2019.05.17BeingelectedasdirectorwhenreelectingnewsessionBoardofDirectors
EnricoSivieriDirectorElected2019.05.17BeingelectedasdirectorwhenreelectingnewsessionBoardofDirectors
SunJianDirectorElected2019.05.17BeingelectedasdirectorwhenreelectingnewsessionBoardofDirectors
LiJimingDirectorElected2019.05.17BeingelectedasdirectorwhenreelectingnewsessionBoardofDirectors
DuanChangqingIndependentdirectorElected2019.05.17BeingelectedasindependentdirectorwhenreelectingnewsessionBoardofDirectors
LiuHuirongIndependentdirectorElected2019.05.17BeingelectedasindependentdirectorwhenreelectingnewsessionBoardofDirectors
QuWeiminSecretaryoftheBoardofDirectorsLeavingthepostowingtoexpirationoftenure2019.05.28Retirement
LiJimingChiefengineerLeavingthepostowingtoexpirationoftenure2019.05.28Expirationoftenure
LiJimingDeputygeneralmanagerAppointed2019.05.28BeingappointedbyBoardofDirectors
JiangJianxunChiefFinancialOfficerLeavingthepostowingtoexpirationoftenure2019.05.28Expirationoftenure
JiangJianxunDeputygeneralmanager&SecretaryoftheBoardofDirectorsAppointed2019.05.28BeingappointedbyBoardofDirectors
GuoGuoqingIndependentdirectorLeavingthepost2019.07.02Resigningfromthepostofindependentdirectoronhisowninitiative
LiuQinglinIndependentdirectorElected2019.07.02Beingelectedasindependentdirector

IX.RelatedSituationofCorporationBonds

WhetherornottherearetheCompany’scorporationbondsissuedinpublicandlistedinthestockexchange,butnotdueontheissuancedateapprovedinthesemi-annualreportorfailingtopayinfullontheduedateNo.

X.FinancialReport

1.AuditreportWhetherthesemi-annualreporthasbeenaudited

□Yes√NoThesemi-annualreportoftheCompanyhasnotbeenaudited.

2.FinancialstatementTheunitinthestatementsofthefinancialannotationsisRMBYuan.

2.1ConsolidatedbalancesheetCompilingunit:YantaiChangyuPioneerWineCo.,Ltd.June30,2019Unit:Yuan

ItemNoteJune30,2019December31,2018
Currentassets:
Monetaryfund7.11,848,632,9531,475,700,477
Settlementreserves
Lendingfunds
Tradablefinancialassets
Financialassetsmeasuredatthefairvalueandthevariationofwhichisrecordedintothecurrentprofitsandlosses
Derivativefinancialassets
Billsreceivable7.2288,667,988
Accountsreceivable7.3186,131,192242,153,083
Receivablesfinancing7.4372,281,872
Advancepayment7.53,490,9284,219,949
Premiumreceivable
Reinsuranceaccountsreceivable
Receivablereservesforreinsurancecontract
Otherreceivables7.628,618,98322,636,086
Including:Interestreceivable2,099,1091,332,681
Dividendsreceivable
Redemptorymonetarycapitalforsale
Inventories7.72,606,781,4362,724,591,457
Contractassets
Assetsheldforsale
Non-currentassetsduewithinoneyear
Othercurrentassets7.8300,418,901258,676,396
ItemNoteJune30,2019December31,2018
Totalcurrentassets5,346,356,2655,016,645,436
Non-currentassets:
Offeringloansandimprest
Debtinvestments
Available-for-salefinancialassets467,251
Otherdebtinvestments
Held-to-maturityinvestments
Long-termreceivables
Long-termequityinvestments
Otherinvestmentsinequityinstruments
Othernon-currentfinancialassets7.9515,922
Investmentrealestate7.1030,560,47031,572,489
Fixedassets7.115,684,612,6535,749,731,667
Constructioninprogress7.12789,872,373759,296,591
Productivebiologicalassets7.13207,613,439209,266,373
Oil-and-gasassets
Right-of-useassets
Intangibleassets7.14647,158,886655,473,459
Developmentexpenditure
Goodwill7.15165,199,111165,199,111
Long-termprepaidexpenses7.16276,557,711244,640,416
Deferredincometaxassets7.17234,646,603285,436,259
Othernon-currentassets
Totalnon-currentassets8,036,737,1688,101,083,616
Totalassets13,383,093,43313,117,729,052
Currentliabilities:
Short-termloans7.18678,170,667688,002,410
BorrowingsfromtheCentralBank
Loansfromotherbanksandotherfinancialinstitutions
Tradablefinancialliabilities
Financialliabilitiesmeasuredatthefairvalueandthevariationofwhichisrecordedintothecurrentprofitsandlosses
Derivativefinancialliabilities
Billspayable
Accountspayable7.19539,459,878713,572,881
Advancesfromcustomers7.20177,549,080226,075,244
Financialassetssoldforrepurchase
Depositsfromcustomersandinterbank
Receivingsfromvicariouslytradedsecurities
Receivingsfromvicariouslysoldsecurities
Employeeremunerationspayable7.21177,466,368212,304,217
Taxesandduespayable7.22109,000,802128,912,790
Otherpayables7.23977,667,007608,479,890
Including:Interestpayable2,669,667712,826
Dividendspayable412,646,375
ItemNoteJune30,2019December31,2018
Handlingchargesandcommissionspayable
Dividendpayableforreinsurance
Contractliabilities
Liabilitiesheldforsale
Non-currentliabilitiesduewithinoneyear7.24180,362,314152,940,788
Othercurrentliabilities7.2514,545,25415,860,254
Totalcurrentliabilities2,854,221,3702,746,148,474
Non-currentliabilities:
Reservesforinsurancecontracts
Long-termborrowings7.26165,949,250156,480,662
Bondspayable
Including:Preferredstock
Perpetualbonds
Leaseliabilities
Long-termaccountspayable7.27201,000,000225,000,000
Long-termemployeeremunerationspayable
Estimatedliabilities
Deferredincome7.2864,050,89570,367,039
Deferredincometaxliabilities7.1718,629,61222,010,647
Othernon-currentliabilities7.297,159,2227,234,853
Totalnon-currentliabilities456,788,979481,093,201
Totalliabilities3,311,010,3493,227,241,675
Owner’sequity:
Capitalstock7.30685,464,000685,464,000
Otherequityinstruments
Including:Preferredstock
Perpetualbonds
Capitalsurplus7.31565,955,441565,955,441
Minus:Treasurystock
Othercomprehensiveincome7.32-95,3442,965,377
Specialreserves
Surplusreserves7.33342,732,000342,732,000
Generalriskpreparation
Undistributedprofit7.348,197,828,9948,008,982,547
Totalowner’sequitiesattributabletotheparentcompany9,791,885,0919,606,099,365
Minorityequity280,197,993284,388,012
Totalowner’sequities10,072,083,0849,890,487,377
Totalliabilitiesandowner’sequities13,383,093,43313,117,729,052

LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:JiangJianxun

2.2Balancesheetoftheparentcompany

Compilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan

ItemNoteJune30,2019December31,2018
Currentassets:
Monetaryfund1,083,333,310624,588,809
Tradablefinancialassets
Financialassetsmeasuredatthefairvalueandthevariationofwhichisrecordedintothecurrentprofitsandlosses
Derivativefinancialassets
Billsreceivable39,885,254
Accountsreceivable15.11,447,973
Receivablesfinancing56,047,969
Advancepayment427,816227
Otherreceivables15.2526,593,6131,025,643,356
Including:Interestreceivable277,785254,088
Dividendsreceivable4,103,925500,000,000
Inventories505,479,473385,154,740
Contractassets
Assetsheldforsale
Non-currentassetsduewithinoneyear
Othercurrentassets35,992,25524,704,844
Totalcurrentassets2,207,874,4362,101,425,203
Non-currentassets:
Debtinvestments
Available-for-salefinancialassets
Otherdebtinvestments
Held-to-maturityinvestments
Long-termreceivables
Long-termequityinvestments15.37,420,803,0697,420,803,069
Otherinvestmentsinequityinstruments
Othernon-currentfinancialassets
Investmentrealestate30,560,47031,572,489
Fixedassets260,448,515265,311,274
Constructioninprogress7,319,0826,311,701
Productivebiologicalassets121,158,460125,002,793
Oilandgasassets
Right-of-useassets
Intangibleassets66,054,49067,244,066
Developmentexpenditure
Goodwill
Long-termprepaidexpenses
Deferredincometaxassets20,699,27324,194,967
Othernon-currentassets985,700,000972,700,000
Totalnon-currentassets8,912,743,3598,913,140,359
Totalassets11,120,617,79511,014,565,562
Currentliabilities:
Short-termloans150,000,000150,000,000
Tradablefinancialliabilities
Financialliabilitiesmeasuredatthefairvalueandthevariationofwhich
ItemNoteJune30,2019December31,2018
isrecordedintothecurrentprofitsandlosses
Derivativefinancialliabilities
Billspayable
Accountspayable106,793,658132,704,304
Advancesfromcustomers
Contractliabilities
Employeeremunerations59,598,04872,345,179
Taxesandduespayable3,749,76213,111,431
Otherpayables913,805,782607,974,519
Including:Interestpayable163,125181,250
Dividendspayable411,278,400
Liabilitiesheldforsale
Non-currentliabilitiesduewithinoneyear
Othercurrentliabilities3,433,0543,433,054
Totalcurrentliabilities1,237,380,304979,568,487
Non-currentliabilities:
Long-termborrowings
Bondspayable
Including:Preferredstock
Perpetualbonds
Leaseliabilities
Long-termaccountspayable
Long-termemployeeremunerationpayable
Estimatedliabilities
Deferredincome7,459,7898,910,918
Deferredincometaxliabilities
Othernon-currentliabilities2,951,0422,710,575
Totalnon-currentliabilities10,410,83111,621,493
Totalliabilities1,247,791,135991,189,980
Owner’sequity:
Capitalstock685,464,000685,464,000
Otherequityinstruments
Including:Preferredstock
Perpetualbonds
Capitalsurplus557,222,454557,222,454
Minus:Treasurystock
Othercomprehensiveincome
Specialreserves
Surplusreserves342,732,000342,732,000
Undistributedprofit8,287,408,2068,437,957,128
Totalowner’sequities9,872,826,66010,023,375,582
Totalliabilitiesandowner’sequities11,120,617,79511,014,565,562

LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:JiangJianxun

2.3ConsolidatedprofitstatementCompilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan

ItemNoteSumofcurrentperiodSumofpriorperiod
1.Totaloperatingincome2,558,274,7852,828,230,064
Including:Operatingincome7.352,558,274,7852,828,230,064
Interestincome
Earnedpremium
Handlingfeeandcommissionincome
2.Totaloperatingcosts1,818,822,5802,023,670,406
Including:Operatingcosts7.35936,252,225974,557,292
Interestexpenditure
Handlingfeesandcommissionexpenditure
Premiumrebate
Netamountofindemnityexpenditure
Netamountofthewithdrawnreservefundforinsurancecontract
Policybonuspayment
Amortizedreinsuranceexpenditures
Taxesandsurcharges7.36123,550,848165,276,251
Sellingexpenses7.37591,970,801710,659,033
Administrativeexpenses7.38155,552,312157,964,882
Researchanddevelopmentexpenses7.392,706,8112,127,006
Financialexpenses7.408,789,58313,085,942
Including:Interestexpenses9,812,56018,739,528
Interestincome4,606,4177,245,870
Plus:Otherprofit7.4164,211,89237,982,878
Investmentprofit(lossislistedwith"-")
Including:Investmentprofitforjoint-runbusinessandjointventure
Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome(lossislistedwith"-")
Exchangeincome(lossislistedwith"-")
Netexposurehedgeincome(lossislistedwith"-")
Incomefromfairvaluechanges(lossislistedwith"-")
Creditimpairmentloss(lossislistedwith"-")7.42-765,935
Assetimpairmentloss(lossislistedwith"-")7.436,148,7294,730,948
Incomefromassetdisposal(lossislistedwith"-")7.441,13893,958
3.Operatingprofit(lossislistedwith"-")809,048,029847,367,442
Plus:Non-operatingincome7.453,575,9142,006,392
Minus:Non-operatingexpenses7.46164,0501,392,362
4.Totalprofits(totallossislistedwith"-")812,459,893847,981,472
Minus:Incometaxexpenses7.47210,281,578211,979,735
5.Netprofit(netlossislistedwith"-")602,178,315636,001,737
5.1Classificationbyoperationcontinuity
5.1.1Netprofitfromcontinuingoperation(netlossislistedwith"-")602,178,315636,001,737
5.1.2Netprofitfromterminatingoperation(netlossislistedwith"-")
5.2Classificationbyownership
5.2.1Netprofitattributabletoowneroftheparentcompany603,403,789635,837,405
5.2.2Minorityinterestincome-1,225,474164,332
6.Netafter-taxamountofothercomprehensiveincome7.48-4,657,291-11,126,413
Netafter-taxamountofothercomprehensiveincomeattributabletoowneroftheparentcompany-3,060,721-9,230,820
6.1Othercomprehensiveincomenottobereclassifiedintoprofitandlosslater
6.1.1Changesafterremeasuringandresettingthebenefitplans
6.1.2Othercomprehensiveincomenottobereclassifiedintoprofitandlossunderequitylaw
6.1.3Changesinthefairvalueofotherinvestmentsinequityinstruments
6.1.4Changesinthefairvalueoftheenterprise'sowncreditrisk
6.1.5Other
6.2Othercomprehensiveincometobereclassifiedintoprofitandlosslater-3,060,721-9,230,820
6.2.1Othercomprehensiveincometobereclassifiedintoprofitandlossunderequitylaw
6.2.2Changesinthefairvalueofotherdebtinvestments
6.2.3Profitandlossfromchangesinthefairvalueoffinancialassetsforsale
6.2.4Amountoffinancialassetsreclassifiedintoothercomprehensiveincome
6.2.5Profitandlossfromreclassificationofheld-to-maturityinvestmentsintofinancialassetsforsale
6.2.6Provisionforcreditimpairmentofothercreditinvestments
6.2.7Provisionforcash-flowhedge
6.2.8DifferenceintranslationofForeignCurrencyFinancialStatement-3,060,721-9,230,820
6.2.9Other
Netafter-taxamountofothercomprehensiveincomeattributabletominorityshareholders-1,596,570-1,895,593
7.Totalcomprehensiveincome597,521,024624,875,324
Attributabletoowneroftheparentcompany600,343,068626,606,585
Attributabletominorityshareholders-2,822,044-1,731,261
8.Earningspershare:
8.1Basicearningspershare0.880.93
8.2Dilutedearningspershare0.880.93

LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:JiangJianxun

2.4Profitstatementoftheparentcompany

Compilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan

ItemNoteSumofcurrentperiodSumofpriorperiod
1.Operatingincome15.4352,351,002408,845,211
Minus:Operatingcosts15.4309,570,580352,646,989
Taxesandsurcharges13,140,15624,463,375
Sellingexpenses
Administrativeexpenses39,434,24639,827,281
Researchanddevelopmentexpenses405,061360,466
Financialexpenses-3,657,370-15,151,608
Including:Interestexpenses-2,705,07311,357,611
Interestincome1,470,66729,630,717
Plus:Otherprofit1,716,5271,976,527
Investmentprofit(lossislistedwith"-")15.5264,221,755312,409,576
Including:Investmentprofitforjoint-runbusinessandjointventure
Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome(lossislistedwith"-")
Netexposurehedgeincome(lossislistedwith"-")
Incomefromfairvaluechanges(lossislistedwith"-")
Creditimpairmentloss(lossislistedwith"-")
Assetimpairmentloss(lossislistedwith"-")
Incomefromassetdisposal(lossislistedwith"-")75,000
2.Operatingprofit(lossislistedwith"-")259,396,611321,159,811
Plus:Non-operatingincome703,55956,479
Minus:Non-operatingexpenses97,638528
3.Totalprofits(totallossislistedwith"-")260,002,532321,215,762
Minus:Incometaxexpenses-726,9462,450,592
4.Netprofit(netlossislistedwith"-")260,729,478318,765,170
4.1Netprofitfromcontinuingoperation(netlossislistedwith"-")260,729,478318,765,170
4.2Netprofitfromterminatingoperation(netlossislistedwith"-")
5.Netafter-taxamountofothercomprehensiveincome
5.1Othercomprehensiveincomenottobereclassifiedintoprofitandlosslater
5.1.1Changesafterremeasuringandresettingthebenefitplans
5.1.2Othercomprehensiveincomenottobereclassifiedintoprofitandlossunderequitylaw
5.1.3Changesinthefairvalueofotherinvestmentsinequityinstruments
5.1.4Changesinthefairvalueoftheenterprise'sowncreditrisk
5.1.5Other
5.2Othercomprehensiveincometobereclassifiedintoprofitandlosslater
5.2.1Othercomprehensiveincometobereclassifiedintoprofitandlossunderequitylaw
5.2.2Changesinthefairvalueofotherdebtinvestments
5.2.3Profitandlossfromchangesinthefairvalueoffinancialassetsforsale
5.2.4Amountoffinancialassetsreclassifiedintoothercomprehensiveincome
5.2.5Profitandlossfromreclassificationofheld-to-maturityinvestmentsintofinancialassetsforsale
5.2.6Provisionforcreditimpairmentofothercreditinvestments
5.2.7Provisionforcash-flowhedge
5.2.8DifferenceintranslationofForeignCurrencyFinancialStatement
5.2.9Other
6.Totalcomprehensiveincome260,729,478318,765,170
7.Earningspershare:
7.1Basicearningspershare0.380.47
7.2Dilutedearningspershare0.380.47

LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:JiangJianxun

2.5Consolidatedcashflowstatement

Compilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan

ItemNoteSumofcurrentperiodSumofpriorperiod
1.Cashflowsfromoperatingactivities:
Cashreceivedfromsalesofgoodsandrendingofservices2,399,548,4482,680,388,050
Netincreaseincustomerandinterbankdeposits
Netincreaseinborrowingsfromcentralbank
Netincreaseinborrowingsfromotherfinancialinstitutions
Cashreceivedfromreceivinginsurancepremiumoforiginalinsurancecontract
Netcashreceivedfromreinsurancebusiness
Netincreaseinpolicyholderdepositsandinvestmentfunds
Cashreceivedfromcollectinginterest,handlingfeesandcommissions
Netincreaseinborrowingfunds
Netincreaseinrepurchasementbusinessfunds
Netcashreceivedforbuyingandsellingsecurities
Taxrefundreceived20,038,27126,089,608
Othercashreceivedrelatedtooperatingactivities7.4967,785,62042,343,021
Subtotalofcashflowsofoperatingactivities2,487,372,3392,748,820,679
Cashpaidforgoodsandservices718,093,432677,552,938
Netincreaseincustomerloansandadvances
Netincreaseindepositsincentralbankandinterbankdeposits
Cashpaidtooriginalinsurancecontractpayments
Netincreaseinfinancialassetsheldfortradingpurposes
Netincreaseinlendingfunds
Cashpaidtointerest,handlingfeesandcommissions
Cashpaidtopolicybonus
Cashpaidtoandonbehalfofemployees278,638,333278,814,385
Cashpaidfortaxesandexpenses598,384,101802,722,798
Othercashpaidrelatedtooperatingactivities7.49392,780,467436,977,086
Sub-totalofcashoutflowsofoperatingactivities1,987,896,3332,196,067,207
ItemNoteSumofcurrentperiodSumofpriorperiod
Netcashflowfromoperatingactivities499,476,006552,753,472
2.Cashflowfrominvestingactivities:
Cashreceivedfromdisinvestment
Cashreceivedfromwithdrawaloffixeddeposits104,597,650305,000,000
Cashreceivedfromobtaininginvestmentincome
Cashreceivedfromobtaininginterestincome1,004,5522,342,015
Cashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets175,837471,130
Netcashreceivedfromdisposalofbranchandotherbusinessunit
Othercashreceivedrelatedtoinvestingactivities
Subtotalofcashflowsofinvestmentactivities105,778,039307,813,145
Cashpaidtoacquirefixedassets,intangibleassetsandotherlong-termassets135,073,897154,464,274
Cashforinvestment
Cashpaidforpurchasingfixeddeposits85,238,750340,000,000
Netincreaseinhypothecatedloan
Netcashpaidforacquiringbranchandotherbusinessunit104,566,419
Othercashpaidrelatedtoinvestmentactivities
Subtotalofcashoutflowsofinvestmentactivities220,312,647599,030,693
Netcashflowfrominvestingactivities-114,534,608-291,217,548
3.Cashflowfromfinancingactivities
Cashreceivedfromacquiringinvestment
Including:cashreceivedfromacquiringminorityshareholdersinvestmentbybranch
Cashreceivedfromacquiringloans656,495,139669,905,706
Cashreceivedfromissuingbonds
Othercashreceivedrelatedtofinancingactivities7.4923,521,431
Subtotalcashflowsoffinancingactivities656,495,139693,427,137
Cashpaidforpayingdebts658,033,492658,512,141
Cashpaidfordistributingdividendandprofitorpayinginterest16,590,00421,265,533
Including:dividendandprofitpaidtominorityshareholdersbybranch
Othercashpaidrelatedtofinancingactivities7.4920,000,000
Subtotalofcashoutflowsoffinancingactivities674,623,496699,777,674
Netcashflowfromfinancingactivities-18,128,357-6,350,537
4.Influencesofexchangeratefluctuationoncashandcashequivalents53,702-7,404,199
5.NetIncreaseincashandcashequivalents366,866,743247,781,188
Plus:balanceatthebeginningoftheperiodofcashandcashequivalents1,206,860,3341,180,889,274
6.Balanceattheendoftheperiodofcashandcashequivalents1,573,727,0771,428,670,462

LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:JiangJianxun

2.6Cashflowstatementoftheparentcompany

Compilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan

ItemSumofcurrentperiodSumofpriorperiod
1.Cashflowsfromoperatingactivities:
Cashreceivedfromsalesofgoodsandrendingofservices219,405,421275,862,358
Taxrefundreceived
Othercashreceivedrelatedtooperatingactivities57,674,830100,163,394
Subtotalofcashflowsofoperatingactivities277,080,251376,025,752
Cashpaidforgoodsandservices163,184,301200,935,534
Cashpaidtoandonbehalfofemployees45,116,58643,647,320
Cashpaidfortaxesandexpenses22,530,11343,132,327
Othercashpaidrelatedtooperatingactivities321,847,89319,942,485
Sub-totalofcashoutflowsofoperatingactivities552,678,893307,657,666
Netcashflowfromoperatingactivities-275,598,64268,368,086
2.Cashflowfrominvestingactivities:
Cashreceivedfromdisinvestment
Cashreceivedfromwithdrawaloffixeddeposits40,000,000305,000,000
Cashreceivedfromobtaininginvestmentincome760,152,668717,667,435
Cashreceivedfromobtaininginterestincome484,8572,342,015
Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets7,519538,055
Netcashreceivedfromdisposalofbranchandotherbusinessunit
Othercashreceivedrelatedtoinvestingactivities
Subtotalofcashflowsofinvestmentactivities800,645,0441,025,547,505
Cashpaidtoacquiringfixedassets,intangibleassetsandotherlong-termassets10,164,23311,968,401
Cashforinvestment13,000,000105,926,184
Cashpaidforpurchasingfixeddeposits85,238,750340,000,000
Netcashpaidforacquiringbranchandotherbusinessunit
Othercashpaidrelatedtoinvestmentactivities
Subtotalofcashoutflowsofinvestmentactivities108,402,983457,894,585
Netcashflowfrominvestingactivities692,242,061567,652,920
3.Cashflowfromfinancingactivities
Cashreceivedfromacquiringinvestment
Cashreceivedfromacquiringloans200,000,000
Cashreceivedfromissuingbonds
Othercashreceivedrelatedtofinancingactivities
Subtotalcashflowsoffinancingactivities200,000,000
Cashpaidfordebts600,000,000
Cashpaidtodistributedividend,profitorpayinterest3,248,00011,660,417
Othercashpaidrelatedtofinancingactivities
Subtotalofcashoutflowsoffinancingactivities3,248,000611,660,417
Netcashflowfromfinancingactivities-3,248,000-411,660,417
4.Influencesofexchangeratefluctuationoncashandcashequivalents
5.NetIncreaseincashandcashequivalents413,395,419224,360,589
Plus:balanceatthebeginningoftheperiodofcashandcash532,384,882493,568,866
ItemSumofcurrentperiodSumofpriorperiod
equivalents
6.Balanceattheendoftheperiodofcashandcashequivalents945,780,301717,929,455

LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:JiangJianxun

2.7Consolidatedowner’sequitychanginglist

Unit:Yuan

ItemThisperiod
Owners’equityoftheparentcompanyMinorityshareholders’equityTotalowners’equity
CapitalstockOtherequityinstrumentsCapitalreservesMinus:TreasurystockOthercomprehensiveincomeSpecialreservesSurplusreservesGeneralriskpreparationUndistributedprofitsOtherSubtotal
PreferredstockPerpetualbondsOther
1.Balanceattheendoflastyear685,464,000565,955,4412,965,377342,732,0008,008,982,5479,606,099,365284,388,0129,890,487,377
Plus:Accountingpolicieschanging-3,278,942-3,278,942-3,278,942
Previouserrorcorrection
Businesscombinationundercommoncontrol
Other
2.Balanceatthebeginningofthisyear685,464,000565,955,4412,965,377342,732,0008,005,703,6059,602,820,423284,388,0129,887,208,435
3.Increasedordecreasedamountinthisperiod(reducingamountislistedwith"-")-3,060,721192,125,389189,064,668-4,190,019184,874,649
3.1Totalcomprehensiveincome-3,060,721603,403,789600,343,068-2,822,044597,521,024
3.2Owners'investedandreducedcapital
3.2.1Owner’investedcommonstock
3.2.2Otherequityinstrumentholders’investedcapital
3.2.3Amountofsharespaidandreckonedin
owners'equity
3.2.4Other
3.3Profitdistribution-411,278,400-411,278,400-1,367,975-412,646,375
3.3.1Accruedsurplusreserves
3.3.2Accruedgeneralriskpreparation
3.3.3Distributiontoowners(orshareholders)-411,278,400-411,278,400-1,367,975-412,646,375
3.3.4Other
3.4Internaltransferofowners'equity
3.4.1Capitalreservestransferredandincreasedcapital(orcapitalstock)
3.4.2Surplusreservestransferredandincreasedcapital(orcapitalstock)
3.4.3Surplusreservescoveringdeficit
3.4.4Retainedearningscarriedoverfromthebenefitplanamount
3.4.5Retainedearningscarriedoverfromothercomprehensiveincome
3.4.6Other
3.5Specialreserves
3.5.1Withdrawalinthisperiod
3.5.2Usageinthisperiod
3.6Other
4.Balanceattheendofthisperiod685,464,000565,955,441-95,344342,732,0008,197,828,9949,791,885,091280,197,99310,072,083,084
ItemLastperiod
Owners’equityoftheparentcompanyMinorityshareholders’equityTotalowners’equity
CapitalstockOtherequityinstrumentsCapitalreservesMinus:TreasurystockOthercomprehensiveincomeSpecialreservesSurplusreservesGeneralriskpreparationUndistributedprofitsOtherSubtotal
PreferredstockPerpetualbondsOther
1.Balanceattheendoflastyear685,464,000565,955,4413,109,240342,732,0007,309,081,6188,906,342,299271,636,3799,177,978,678
Plus:Accountingpolicieschanging
Previouserrorcorrection
Businesscombinationundercommoncontrol
Other
2.Balanceatthebeginningofthisyear685,464,000565,955,4413,109,240342,732,0007,309,081,6188,906,342,299271,636,3799,177,978,678
3.Increasedordecreasedamountinthisperiod(reducingamountislistedwith"-")-143,863699,900,929699,757,06612,751,633712,508,699
3.1Totalcomprehensiveincome-143,8631,042,632,9291,042,489,066-1,381,4141,041,107,652
3.2Owners'investedandreducedcapital17,532,82317,532,823
3.2.1Owner’investedcommonstock
3.2.2Otherequityinstrumentholders’investedcapital
3.2.3Amountofsharespaidandreckonedinowners'equity
3.2.4Other17,532,82317,532,823
3.3Profitdistribution-342,732,000-342,732,000-3,399,776-346,131,776
3.3.1Accruedsurplusreserves
3.3.2Accruedgeneralriskpreparation
3.3.3Distributiontoowners(orshareholders)-342,732,000-342,732,000-3,399,776-346,131,776
3.3.4Other
3.4Internaltransferofowners'equity
3.4.1Capitalreservestransferredandincreasedcapital(orcapitalstock)
3.4.2Surplusreservestransferredandincreasedcapital(orcapitalstock)
3.4.3Surplusreservescoveringdeficit
3.4.4Retainedearningscarriedoverfromthebenefitplanamount
3.4.5Retainedearningscarriedoverfromothercomprehensiveincome
3.4.6Other
3.5Specialreserves
3.5.1Withdrawalinthisperiod
3.5.2Usageinthisperiod
3.6Other
4.Balanceattheendofthisperiod685,464,000565,955,4412,965,377342,732,0008,008,982,5479,606,099,365284,388,0129,890,487,377

2.8Owner’sequitychanginglistoftheparentcompany

Unit:Yuan

ItemThisperiod
CapitalstockOtherequityinstrumentsCapitalreservesMinus:TreasurystockOthercomprehensiveincomeSpecialreservesSurplusreservesUndistributedprofitsOtherTotalowners’equity
PreferredstockPerpetualbondsOther
1.Balanceattheendoflastyear685,464,000557,222,454342,732,0008,437,957,12810,023,375,582
Plus:Accountingpolicieschanging
Previouserrorcorrection
Other
2.Balanceatthebeginningofthisyear685,464,000557,222,454342,732,0008,437,957,12810,023,375,582
3.Increasedordecreasedamountinthisperiod(reducingamountislistedwith"-")-150,548,922-150,548,922
3.1Totalcomprehensiveincome260,729,478260,729,478
3.2Owners'investedandreducedcapital
3.2.1Shareholders’investedcommonstock
3.2.2Otherequityinstrumentholder’investedcapital
3.2.3Amountofsharespaidandreckonedinowners'equity
3.2.4Other
3.3Profitdistribution-411,278,400-411,278,400
3.3.1Drewsurplusreserves
3.3.2Distributiontoowners(orshareholders)-411,278,400-411,278,400
3.3.3Other
3.4Internaltransferofowners'equity
3.4.1Capitalreservestransferredandincreasedcapital(orcapitalstock)
3.4.2Surplusreservestransferredand
increasedcapital(orcapitalstock)
3.4.3Surplusreservescoveringdeficit
3.4.4Retainedearningscarriedoverfromthebenefitplanamount
3.4.5Retainedearningscarriedoverfromothercomprehensiveincome
3.4.6Other
3.5Specialreserves
3.5.1Accrualinthisperiod
3.5.2Usageinthisperiod
3.6Other
4.Balanceattheendofthisperiod685,464,000557,222,454342,732,0008,287,408,2069,872,826,660

Unit:Yuan

ItemLastperiod
CapitalstockOtherequityinstrumentsCapitalreservesMinus:TreasurystockOthercomprehensiveincomeSpecialreservesSurplusreservesUndistributedprofitsOtherTotalowners’equity
PreferredstockPerpetualbondsOther
1.Balanceattheendoflastyear685,464,000557,222,454342,732,0007,811,100,5559,396,519,009
Plus:Accountingpolicieschanging
Previouserrorcorrection
Other
2.Balanceatthebeginningofthisyear685,464,000557,222,454342,732,0007,811,100,5559,396,519,009
3.Increasedordecreasedamountinthisperiod(reducingamountislistedwith"-")626,856,573626,856,573
3.1Totalcomprehensiveincome969,588,573969,588,573
3.2Owners'investedandreducedcapital
3.2.1Shareholders’investedcommonstock
3.2.2Otherequityinstrumentholder’investedcapital
3.2.3Amountofsharespaidand
reckonedinowners'equity
3.2.4Other
3.3Profitdistribution-342,732,000-342,732,000
3.3.1Drewsurplusreserves
3.3.2Distributiontoowners(orshareholders)
3.3.3Other
3.4Internaltransferofowners'equity
3.4.1Capitalreservestransferredandincreasedcapital(orcapitalstock)
3.4.2Surplusreservestransferredandincreasedcapital(orcapitalstock)
3.4.3Surplusreservescoveringdeficit
3.4.4Retainedearningscarriedoverfromthebenefitplanamount
3.4.5Retainedearningscarriedoverfromothercomprehensiveincome
3.4.6Other
3.5Specialreserves
3.5.1Accrualinthisperiod
3.5.2Usageinthisperiod
3.6Other
4.Balanceattheendofthisperiod685,464,000557,222,454342,732,0008,437,957,12810,023,375,582

3.Companyprofile

YantaiChangyuPioneerWineCo.,Ltd.(the“Company”orthe“Joint-stockCompany”)wasincorporatedasajoint-stocklimitedcompanyinaccordancewiththeCompanyLawofthePeople’sRepublicofChina(the“PRC”)inthemergerandreorganizationcarriedoutbyYantaiChangyuGroupCo.,Ltd.(“ChangyuGroupCompany”)withitsassetsandliabilitiesinrelationtowinebusiness.TheCompanyanditssubsidiarycompanies(hereinaftercollectivelyreferredtoasthe“Group”)areengagedintheproductionandsaleofwine,brandyandchampagne,plantingandpurchaseofgrapes,developmentoftourismresources,etc.TheregisteredaddressoftheCompanyisYantaiCity,ShandongProvince,andtheofficeaddressoftheheadquartersis56DamaRoad,ZhifuDistrict,YantaiCity,ShandongProvince.AsatJune30,2019,theCompanyissued685,464,000sharesaccumulatively.RefertoNote7.30fordetails.TheparentcompanyoftheGroupisChangyuGroupCompanyincorporatedinChina,whichwasultimatelyandactuallycontrolledbyfourparties,includingYantaiGuofengInvestmentHoldingCo.,Ltd.,ILLVASaronnoHoldingSpa,InternationalFinanceCorporationandYantaiYuhuaInvestment&DevelopmentCo.,Ltd.ThefinancialstatementandtheconsolidatedfinancialstatementoftheCompanywereapprovedbytheBoardofDirectorsonAugust26,2019.ThedetailsofscopeoftheconsolidatedfinancialstatementinthisperiodcanbeseeninNote9“Equityinotherentities”.ThedetailsofscopechangesoftheconsolidatedfinancialstatementinthisperiodcanbeseeninNote8“Changesoftheconsolidatedscope”.

4.Preparationbasisoffinancialstatement

4.1Preparationbasis

TheGroupimplementstheAccountingStandardsforBusinessEnterprises(includingthenewandrevisededitionspublishedin2014)(“ASBE”)publishedbytheMinistryofFinanceandrelevant

regulationsthereof.Note-accountingbasisandpricingprincipleThenote-accountingbasisoffinancialaccountingadoptedbytheGroupisaccrualsystemandthemeasurementbasisadoptedbytheGroupinpreparingitsfinancialstatementishistoricalcost.Subsequently,iftheassetsareimpaired,theimpairmentprovisionsaremadeinaccordancewithrelevantaccountingstandards.Whenthehistoricalcostmeasurementisused,theassetsaremeasuredbytheamountofcashorcashequivalentwhentheassetsarepurchasedorthefairvalueoftheconsideration.Theliabilitiesaremeasuredbytheactuallyreceivedfundsorassetsforperformingthecurrentobligations,orthecontractamountforperformingthecurrentobligations,ortheamountofcashorcashequivalentpaidforanticipatedliabilitiesinthedailyactivities.Fairvaluereferstoapricereceivedforsellinganassetorpaidfortransferringaliabilitybythemarketparticipantinorderlytransactionsonthemeasurementdate.Nomatterthefairvalueisobservableorestimatedbythevaluationtechnique,thefairvaluemeasuredanddisclosedinthisfinancialstatementisrecognizedonthisbasis.Thefairvaluemeasurementisdividedintothreelevelsbasedontheobservabledegreeoftheinputfairvalueandtheimportanceofthisinputvalueonthewholefairvaluemeasurement:

*Theinputvalueofthefirstlevelistheunadjustedpriceofthesameassetsorliabilitieswhichcanbeacquiredinanactivemarketonthemeasurementdate.*Theinputvalueofthesecondlevelisthedirectlyorindirectlyobservableinputvalueofrelevantassetsorliabilitiesexceptthatofthefirstlevel.*Theinputvalueofthethirdlevelistheunobservableinputvalueofrelevantassetsorliabilities.

4.2Continuousoperation

TheGrouphasappraisedtheabilityofcontinuousoperationfor12monthsfromJune30,2019,andno

issuesorsituationscausingmajordoubtstothisabilityarefound.Therefore,thisfinancialstatementispreparedonthebasisofthecontinuousoperationassumption.

5.Mainaccountingpoliciesandaccountingestimates

5.1StatementoncompliancewithASBE

ThisfinancialstatementfulfillstherequirementofASBEandgivesatrueandintegratedviewofthefinancialstatusandtheconsolidatedfinancialstatusasatJune30,2019,aswellastheoperatingresult,theconsolidatedoperatingresult,thecashflowandtheconsolidatedcashflowoftheCompanyfromJanuarytoJune2019.

5.2AccountingperiodTheaccountingperiodoftheGroupisfromJanuary1toDecember31.

5.3OperatingcycleTheoperatingcyclereferstotheperiodfromtheenterprisepurchasestheassetsusedforprocessingtothecashorcashequivalentisrealized.TheoperatingcycleoftheCompanyis12months.

5.4RecordingcurrencySinceRenminbi(RMB)isthecurrencyofthemaineconomicenvironmentinwhichtheCompanyandthedomesticsubsidiarycompaniesthereofaresituated,theCompanyandthesubsidiarycompaniesthereofadoptRMBastherecordingcurrency.TheoverseassubsidiarycompaniesthereofdetermineEUR,CLPandAUDastherecordingcurrencyaccordingtothemaineconomicenvironmentinwhichtheyaresituated.ThecurrencyinthisfinancialstatementpreparedbytheGroupisRMB.

5.5Accountingtreatmentmethodforbusinesscombinationundercommoncontrolandnon-commoncontrol

5.5.1Businesscombinationandgoodwillundernon-commoncontrol

Abusinesscombinationundernon-commoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbeforeandafterthecombination.Thecombinationcostshallbethefairvalueoftheassetspaid,theliabilitiesincurredorassumedortheequityinstrumentsissuedbytheacquirerinexchangeforthecontrolovertheacquiree.Theintermediaryexpensessuchasaudit,legalservicesandassessmentconsultationandotherrelatedmanagementexpensespaidbytheacquirerforbusinesscombinationareincludedinthecurrentprofitsandlosseswhentheyoccur.Theidentifiableassets,liabilitiesandcontingentliabilitieswhichareobtainedfromtheacquireeinthebusinesscombinationandmeettherecognitionconditionsshallbemeasuredontheacquisitiondateaccordingtothefairvaluethereof.Wherethecostofcombinationexceedstheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceshallberecognizedasgoodwillasanassetandinitiallymeasuredatcost.Wherethecostofcombinationislessthantheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,theacquirerfirstlyre-assessesthemeasurementofthefairvaluesoftheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesandmeasurementofthecostofcombination.Ifafterthatreassessment,thecostofcombinationisstilllessthantheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,theacquirerrecognizestheremainingdifferenceimmediatelyinprofitorlossforthecurrentperiod.Thegoodwillformedduetobusinesscombinationshallbeseparatelylistedintheconsolidatedfinancialstatementandmeasuredonthebasisofthecostminustheaccumulativeimpairmentprovision.

5.6CompilingmethodsofconsolidatedfinancialstatementTheconsolidationscopeoftheconsolidatedfinancialstatementisdeterminedonthebasisofcontrol.Controlmeansthattheinvestorholdsthepowerintheinvestedparty,obtainsvariablereturnsbyparticipatinginrelevantactivitiesoftheinvestedpartyandhastheabilitytoaffecttheamountofthereturnsbyusingthepowerontheinvestedparty.OnceanychangeoftherelevantfactsandsituationsresultsinanychangeofrelevantelementsoftheabovedefinitionofControl,theGroupwillcarryoutreappraisal.

ThemergerofanysubsidiarycompanystartsfromthedatewhentheGroupacquiresthepowertocontrolthissubsidiarycompany,whiletheterminationofanysubsidiarycompanyendsinthedatewhentheGrouplossesthepowertocontrolthissubsidiarycompany.Asforanysubsidiarycompanyobtainedinabusinesscombinationundernon-commoncontrol,thebusinessresultandthecashflowthereofsincetheacquisitiondate(dateofobtainingthecontrolpower)shallhavebeenproperlyincludedintheconsolidatedincomestatementandtheconsolidatedcashflowstatement.TheprincipalaccountingpoliciesandaccountingperiodadoptedbythesubsidiarycompaniesshallbedeterminedinaccordancewiththeaccountingpoliciesandaccountingperioduniformlyregulatedbytheCompany.TheinfluenceoftheinternaltransactionbetweentheCompanyandthesubsidiarycompaniesaswellasamongsubsidiarycompaniesontheconsolidatedfinancialstatementshallbeneutralizedatthetimeofcombination.Thesharesintheowner'sequityofthesubsidiarycompanies,whichdonotbelongtotheparentcompany,shallberecognizedastheminorityequityandlistedundertheitemof“minorityequity”oftheowner’sequityinthebalancesheet.Thesharesinthecurrentprofitsandlossesofthesubsidiarycompanies,whichbelongtotheminorityequity,shallbelistedundertheitemof“minorityequity”ofthenetprofitintheconsolidatedincomestatement.Ifthelossofthesubsidiarycompaniesbornebyminorityshareholdersexceedsthesharesoftheowner'sequityentitledthereinbytheminorityshareholdersatthebeginningoftheperiod,thedifferenceshallbestillcreditedagainsttheminorityequity.

5.7DeterminationstandardofcashandcashequivalentsCashcomprisescashonhandanddemanddepositoftheCompany.Cashequivalentsrefertoshort-termhighlyliquidinvestmentsheldbytheGroupwhicharereadilyconvertibleintoknownamountofcashwithaninsignificantriskofchangesinvalue.

5.8Foreigncurrencytransactionandforeigncurrencystatementtranslation

5.8.1Foreigncurrencytransaction

Atthetimeofinitialrecognitionofaforeigncurrencytransaction,theamountoftheforeigncurrencyshallbetranslatedintotheamountoftherecordingcurrencyatthespotexchangerateonthetransactiondate.ThemonetaryitemsoftheforeigncurrencytransactionshallbetranslatedintoRMBatthespotchangerateonthebalancesheetdate.Thecurrencytranslationdifferencegeneratedbythedifferencebetweenthespotchangerateonthebalancesheetdateandthespotchangerateattheinitialrecognitionoronthepreviousbalancesheetdateshallbeincludedinthecurrentprofitsandlosses,except:

①thecurrencytranslationdifferenceofthededicatedforeigncurrencyloanthatmeetsthecapitalizationconditionshallbeincludedinthecostofassetsascapitalizationduringthecapitalizationperiod;②thecurrencytranslationdifferenceofthearbitragetooltoavoidforeignexchangeriskshallbetreatedaccordingtothehedgeaccountingmethod;③thecurrencytranslationdifferenceoftheavailable-for-salemonetaryitemsgeneratedbychangesofthebookbalanceotherthantheamortizedcostshallberecognizedasothercomprehensiveincomeandincludedinthecurrentprofitsandlosses.

5.8.2TranslationofforeigncurrencyfinancialstatementInordertocompileaconsolidatedfinancialstatement,theforeigncurrencyfinancialstatementofoverseasbusinessshallbetranslatedintoRMBfinancialstatementinaccordancewiththefollowingmethods:allassetandliabilityitemsinthebalancesheetshallbetranslatedatthespotexchangerateonthebalancesheetdate;theshareholders'equityitems,exceptfortheonesas"undistributedprofits",shallbetranslatedatthespotexchangerateatthetimewhentheyoccur;allitemsandtheitemsreflectingtheaccrualprofitdistributionintheprofitstatementshallbetranslatedattheexchangeratesimilartothespotexchangerateatthetimewhentheyoccur;theundistributedprofitsatthebeginningoftheyearshallbethetranslatedtotheundistributedprofitsattheendofthepreviousyear;theundistributedprofitsattheendoftheyearshallbecalculatedandlistedasthetranslatedprofitdistributionitems;andthedifferencebetweentheassetitemsandthesumoftheliabilityitemsandtheshareholders’equityitemsshallberecognizedasothercomprehensiveincomeandincludedintheshareholder'sequity.Theforeigncurrencycashflowsandthecashflowsoftheoverseassubsidiarycompaniesshallbetranslatedattheexchangeratesimilartothespotexchangerateatthetimewhentheyoccur;the

amountofthecashandcashequivalentsimpactedbytheexchangeratemovementshallbe,asareconcilingitem,separatelylistedunder“impactofexchangeratemovementoncashandcashequivalents”inthecashflowstatement.Thebalanceatthebeginningoftheyearandtheactualamountofthepreviousyearshallbelistedastheamounttranslatedaccordingtothefinancialstatementofthepreviousyear.

5.9FinancialinstrumentsWhenbecomingapartytoacontractoffinancialinstruments,theCompanyshallrecognizeafinancialassetorfinancialliability.

5.9.1Classification,recognitionandmeasurementoffinancialassetsAccordingtothebusinessmodeloffinancialassetsmanagementandthecontractualcashflowcharacteristicsoffinancialassets,theCompanydividesfinancialassetsinto:financialassetsmeasuredatamortizedcost;financialassetsmeasuredatfairvalueandthevariationofwhichisincludedinothercomprehensiveincome;andfinancialassetsmeasuredatfairvalueandthevariationofwhichisincludedinthecurrentprofitsandlosses.Atthetimeofinitialrecognition,financialassetsshallbemeasuredattheirfairvalue.Asforthefinancialassetsmeasuredattheirfairvalueandthevariationofwhichisincludedinthecurrentprofitsandlosses,thetransactionexpensesthereofshallbedirectlyincludedinthecurrentprofitsandlosses;asforothercategoriesoffinancialassets,thetransactionexpensesthereofshallbeincludedininitialrecognizedcost.Foraccountsreceivableorbillsreceivablearisingfromsaleofproductsorprovisionofservices,whichdonotcontainordonottakeintoaccountmaterialfinancingelements,theCompanyshalltaketheamountofconsiderationthattheCompanyisentitledtoreceiveasexpectedastheinitialrecognizedamount.①FinancialassetsmeasuredatamortizedcostTheCompanymanagessuchfinancialassetsbythefollowingbusinessmodel:collectingcontractualcashflowasthetarget,withthecontractualcashflowcharacteristicsofsuchfinancialassetsconsistentwiththebasiclendingarrangement,thatis,thecashflowgeneratedonaspecificdateisonlythepaymentofprincipalandinterestbasedontheoutstandingprincipalamount.TheCompanyshallrecognizetheinterestincomeofsuchfinancialassetsbytheactualinterestratemethod,andconductsubsequentmeasurementatamortizedcost.Theprofitsorlossesgeneratedfromtheamortizationor

impairmentshallbeincludedinthecurrentprofitsandlosses.②FinancialassetsmeasuredatfairvalueandthevariationofwhichisincludedinothercomprehensiveincomeTheCompanymanagessuchfinancialassetsbythefollowingbusinessmodel:aimingatbothreceivingcontractualcashflowandselling,withthecontractualcashflowcharacteristicsofsuchfinancialassetsconsistentwiththebasiclendingarrangements.Suchfinancialassetsaremeasuredatfairvalueandthevariationofwhichisincludedinothercomprehensiveincome,butimpairmentlossesorgains,exchangegainsandlossesandinterestincomecalculatedbytheeffectiveinterestratemethodshallbeincludedinthecurrentprofitsandlosses.Inaddition,theCompanydesignatessomenon-tradableequityinstrumentinvestmentsasfinancialassetsmeasuredatfairvalueandthevariationofwhichisincludedinothercomprehensiveincome.TheCompanyshallincluderelevantdividendincomeofsuchfinancialassetsinthecurrentprofitsandlosses,andthefairvaluechangesinothercomprehensiveincome.Whentherecognitionofsuchfinancialassetsisterminatedtheaccumulatedgainsorlossespreviouslyrecordedinothercomprehensiveincomewillbetransferredintoretainedincomefromothercomprehensiveincome,whichshallnotbeincludedinthecurrentprofitsandlosses.③FinancialassetsmeasuredatfairvalueandthevariationofwhichisincludedinthecurrentprofitsandlossesTheCompanydividesthosefinancialassetsexcludingtheabovefinancialassetsmeasuredatamortizedcostandfinancialassetsmeasuredatfairvalueandthevariationofwhichisincludedinothercomprehensiveincomeintofinancialassetsmeasuredatfairvalueandthevariationofwhichisincludedinthecurrentprofitsandlosses,andlistastradablefinancialassets.Inaddition,atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theCompanydesignatessomefinancialassetsasfinancialassetsmeasuredatfairvalueandthevariationofwhichisincludedinthecurrentprofitsandlosses.Forsuchfinancialassets,theCompanyadoptsfairvalueforsubsequentmeasurement,andthevariationinfairvalueshallbeincludedinthecurrentprofitsandlosses.Thefinancialassetsthathavematuredformorethanoneyearsincethebalancesheetdateandareexpectedtobeheldformorethanoneyeararelistedasothernon-currentfinancialassets.

5.9.2Classification,recognitionandmeasurementoffinancialliabilities

Atthetimeofinitialrecognition,financialliabilitiesaredividedintofinancialliabilitiesmeasuredatfairvalueandthevariationofwhichisincludedinthecurrentprofitsandlossesandotherfinancialliabilities.Asforthefinancialliabilitiesmeasuredatfairvalueandthevariationofwhichisincluded

inthecurrentprofitsandlosses,thetransactionexpensesthereofshallbedirectlyincludedinthecurrentprofitsandlosses;asforotherfinancialliabilities,thetransactionexpensesthereofshallbeincludedininitialrecognizedcost.①FinancialliabilitiesmeasuredatfairvalueandthevariationofwhichisincludedinthecurrentprofitsandlossesFinancialliabilitiesmeasuredatfairvalueandthevariationofwhichisincludedinthecurrentprofitsandlossesincludetradablefinancialliabilities(includingderivativesbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedasthosemeasuredatfairvaluewheninitiallyrecognizedandthevariationofwhichisincludedinthecurrentprofitsandlosses.Tradablefinancialliabilities(includingderivativesbelongingtofinancialliabilities)shallbesubsequentlymeasuredatfairvalue,andthevariationinthefairvalueshallbeincludedinthecurrentprofitsandlossesexceptthoserelatedtohedgeaccounting.Forthefinancialliabilitiesdesignatedasthosemeasuredatfairvalueandthevariationofwhichisincludedthecurrentprofitsandlosses,thevariationinfairvaluecausedbychangesintheCompany'sowncreditriskisincludedintoothercomprehensiveincome,andwhentherecognitionofthisliabilityisterminated,theaccumulatedvariationinfairvaluecausedbychangesinitsowncreditriskwhichisincludedintoothercomprehensiveincomeshallbetransferredintoretainedincome.Theremainingvariationsinfairvalueareincludedinthecurrentprofitsandlosses.Ifanyaccountingmismatchinprofitsandlossesiscausedorenlargedbyhandlingtheimpactofchangesintheowncreditriskofsuchfinancialliabilitiesintheaboveway,theCompanyshallincludeallthegainsorlossesofsuchfinancialliabilities(includingtheimpactamountofchangesinthecreditriskoftheenterprise)inthecurrentprofitsandlosses.②OtherfinancialliabilitiesInadditiontothefinancialassetsofwhichthetransferdoesn’tmeettheconditionstoterminatetherecognitionorfinancialliabilitiesformedbycontinuousinvolvementinthetransferredfinancialassetsandotherfinancialliabilitiesbeyondthefinancialguaranteecontractclassifiedasfinancialliabilitiesmeasuredatamortizedcost,thefinancialliabilitiesshallbemeasuredattheamortizedcostforsubsequentmeasurement,andtheprofitsorlossescausedbyterminationofrecognitionoramortizationshallbeincludedinthecurrentprofitsandlosses.

5.9.3Recognitionbasisandmeasurementmethodforthetransferoffinancialassets

Whereafinancialassetmeetsanyofthefollowingrequirements,therecognitionofitshallbeterminated:①Thecontractualrightsforcollectingthecashflowofthesaidfinancialassetareterminated;②Thefinancialassethasbeentransferredandalmostalltherisksandrewardsintheownershipofthefinancialassethavebeentransferredtothetransferee;③Thefinancialassethasbeentransferred,althoughtheenterprisehasneithertransferrednorretainedalmostalltherisksandrewardsintheownershipofthefinancialasset,ithasgivenupitscontroloverthefinancialasset.Iftheenterprisehasneithertransferrednorretainednearlyalltherisksandrewardsintheownershipofthefinancialasset,andhasnotgivenupitscontroloverthefinancialasset,relevantfinancialassetshallberecognizedaccordingtotheextentofitscontinuedinvolvementinthetransferredfinancialasset,andrelevantliabilitiesshallberecognizedaccordingly.Theextentofcontinuedinvolvementinthetransferredfinancialassetreferstotherisklevelfacedbytheenterpriseduetothechangeinthevalueofthefinancialasset.Wheretheoveralltransferofthefinancialassetmeetsthederecognitionconditions,thedifferencebetweenthebookvalueofthetransferredfinancialassetaswellastheconsiderationreceivedduetosuchtransferandthesummationofthecumulativeamountofthefairvalueoftheassetthatisoriginallyincludedinothercomprehensiveincomeshallbeincludedinthecurrentprofitsandlosses.Wherethepartlytransferofafinancialassetmeetsthederecognitionconditionsoftermination,thebookvalueofthetransferredfinancialassetshallbedistributedbetweentheterminatedpartoftherecognitionandtheunterminatedpartoftherecognition,andthedifferencebetweenthesumoftheconsiderationreceivedasaresultofthetransferandtheaccumulatedmountofthechangesinthefairvalueofthederecognizedpartthatisoriginallyincludedinothercomprehensiveincomeandtheaforesaiddistributedbookamountshallbeincludedinthecurrentprofitsandlosses.TheCompanyshalldeterminewhetheralmostalltherisksandrewardsintheownershipofthefinancialassetssoldbymeansofattachedrightofrecourseorthefinancialassetsthatitholdswhichareendorsedtotransferhavebeentransferred.Wherealmostalltherisksandrewardsintheownershipofthefinancialassetshavebeentransferredtothetransferee,therecognitionofsuchfinancialassetsshallbeterminated;Wherealmostalltherisksandrewardsintheownershipofthefinancialassetsareretained,therecognitionofsuchfinancialassetsshallnotbeterminated;Ifalmostalltherisksandrewardsintheownershipofthefinancialassetsareneithertransferrednorretained,theenterpriseshallcontinuetojudgewhetheritretainscontrolovertheassetsandthenconductaccountingtreatmentinaccordancewiththeprinciplesdescribedintheprecedingparagraphs.

5.9.4Derecognitionoffinancialliabilities

Wherethecurrentobligationofafinancialliability(orpartthereof)hasbeendischarged,theCompanyshallterminatetherecognitionofsuchfinancialliability(orpartthereof).IftheCompany(borrower)signsanagreementwiththelendertoreplacetheoriginalfinancialliabilitybyassumingthenewfinancialliability,andthecontracttermsofthenewfinancialliabilityaresubstantiallydifferentfromthoseoftheoriginalfinancialliability,therecognitionoftheoriginalfinancialliabilityshallbeterminatedandanewfinancialliabilityshallberecognizedatthesametime.IftheCompanysubstantiallymodifiesthecontracttermsoftheoriginalfinancialliability(orpartthereof),itshallterminatetherecognitionoftheoriginalfinancialliabilityandrecognizeanewfinancialliabilityinaccordancewiththerevisedtermsatthesametime.Iftherecognitionofafinancialliability(orpartofit)isterminated,theCompanyshallrecordthedifferencebetweenitsbookvalueandtheconsiderationpaid(includingthetransferrednon-cashassetsorliabilitiesassumed)intothecurrentprofitsandlosses.

5.9.5OffsettingoffinancialassetsandfinancialliabilitiesWheretheCompanyhasalegalrightthatiscurrentlyenforceabletosetofftherecognizedamountoffinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealisethefinancialassetsandclearoffthefinancialliabilitiessimultaneously,thefinancialassetsandfinancialliabilitiesshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.

5.9.6DeterminationmethodofthefairvalueoffinancialassetsandliabilitiesThefairvaluereferstothepricethatmarketparticipantsneedtopaytoreceiveortransferaliabilitywhensellinganassetinanorderlytransactionthattakesplaceonthemeasurementdate.Wherethereisanactivemarketforafinancialinstrument,theCompanyshalldetermineitsfairvaluebythequotationintheactivemarket.Quotationsintheactivemarketarepricesthatarereadilyavailablefromexchanges,brokers,tradeassociations,pricingservices,etc.,onaregularbasis,whichrepresentthepricesofactualmarkettransactionsthatoccurinfairtrade.Wherethereisnoactivemarketforfinancialinstruments,theCompanyshallusevaluation

techniquestodeterminetheirfairvalue.Valuationtechniquesincludereferringtopricesusedinrecentmarkettransactionsbypartiesfamiliarwiththesituationandwillingtotrade,currentfairvaluesofotherfinancialinstrumentsthataresubstantiallythesame,discountedcashflowmethod,optionpricingmodels,etc.Atthetimeofvaluation,theCompanyadoptsvaluationtechniquesapplicabletothecurrentsituationandsupportedbysufficientavailabledataandotherinformation,selectsinputvaluesconsistentwiththeassetorliabilitycharacteristicsconsideredbymarketparticipantsinthetransactionofrelatedassetsorliabilities,andgivesprioritytorelevantobservableinputvaluesasfaraspossible.Whenrelevantobservableinputvaluescan’tbeobtainedorarenotpracticabletoobtain,thenon-inputablevaluesshallbeused.

5.9.7EquityinstrumentsAnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheCompanyafterdeductingallofitsliabilities.TheCompanyissues(includingrefinancing),repurchases,sellsorcancelsequityinstrumentsaschangesinequity,andtransactioncostsrelatedtoequitytransactionsaredeductedfromtheequity.TheCompanydoesnotrecognizeanyvariationinthefairvalueofequityinstruments.DividendspaidontheCompany'sequityinstrumentsduringtheirexistence(includingthe“interest”generatedbytheinstrumentsclassifiedasequityinstruments)shallbetreatedasprofitdistribution.

5.9.8Impairmentoffinancialassets

Forfinancialassetsmeasuredatamortizedcostanddebtinstrumentinvestmentsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,theCompanyshallrecognizeprovisionforlossesonthebasisofexpectedcreditlosses.TheCompanytakesreasonableandreliableinformationaboutpastevents,currentsituationandforecastoffutureeconomicsituationintoconsideration,calculatestheprobabilityweightedamountofthepresentvalueofthedifferencebetweenthecashflowreceivableofthecontractandthecashflowexpectedtobereceivedbasedontheweightoftheriskofdefault,andrecognizestheexpectedcreditlosses.

Oneachbalancesheetdate,theCompanymeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstagesrespectively.Ifthecreditriskofthefinancialinstrumentdoesnotincreasesignificantlyaftertheinitialrecognition,inthefirststage,theCompanyshallmeasuretheprovisionforlossesaccordingtotheexpectedcreditlossesinthenext12months;Ifthecreditriskofafinancialinstrumenthasincreasedsignificantlysincetheinitialrecognition,butnocreditimpairmenthasoccurred,inthesecondstage,theCompanyshallmeasuretheprovisionforlossesaccordingtotheexpectedcreditlossoftheentiredurationoftheinstrument;Ifthecreditimpairmentofafinancialinstrumenthasoccurredsincetheinitialrecognition,inthethirdstage,theCompanyshallmeasuretheprovisionforlossesaccordingtotheexpectedcreditlossoftheentiredurationoftheinstrument.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanyassumesthatthecreditriskhasnotincreasedsignificantlysincetheinitialrecognition,andmeasurestheprovisionforlossesaccordingtotheexpectedcreditlossinthenext12months.Forthefinancialinstrumentsinthefirstandsecondstagesandwithlowcreditrisk,theCompanycalculatestheinterestincomeaccordingtothebookbalancewithoutdeductionofimpairmentprovisionattheactualinterestrate.Forfinancialinstrumentsinthethirdstage,interestincomeiscalculatedaccordingtothebookbalanceminustheamortizedcostattheactualinterestrateaftertheprovisionforimpairmenthasbeenaccrued.Whenanindividualfinancialassetcan’tevaluatetheinformationoftheexpectedcreditlossatareasonablecost,theCompanydividesthereceivablesintoseveralcombinationsaccordingtothecharacteristicsofcreditrisk,andcalculatestheexpectedcreditlossonthebasisofthecombination.Forbillsreceivableandaccountsreceivable,nomatterwhetherthereisasignificantfinancingcomponent,theCompanymeasurestheprovisionforlossesaccordingtotheexpectedcreditlossthroughouttheduration.Forthebillsreceivabledividedintoportfolio,theCompanycalculatestheexpectedcreditlossbyreferringtothehistoricalcreditlossexperience,combiningthecurrentsituationaswellastheforecastofthefutureeconomicsituation,andthroughthedefaultriskexposureandtheexpectedcreditlossrateoftheentireduration.Fortheaccountsreceivabledividedintoportfolio,theCompanycalculatestheexpectedcreditlossbyreferringtothehistoricalcreditlossexperience,combiningthecurrentsituationaswellastheforecast

ofthefutureeconomicsituation,andformulatingthecomparisontableoftheoverduedaysofaccountsreceivableandtheexpectedcreditlossrateofthewholeduration.Forotherreceivablesdividedintoportfolio,theCompanycalculatestheexpectedcreditlossbyreferringtothehistoricalcreditlossexperience,combiningthecurrentsituationaswellastheforecastofthefutureeconomicsituation,andthroughthedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentireduration.TheCompanywillincludetheaccruedortransferred-backprovisionforlossesinthecurrentprofitsandlosses.Fordebtinstrumentsthataremeasuredatfairvalueandthevariationofwhichisincludedinothercomprehensiveincome,theCompanyshalladjustothercomprehensiveincomewhileincludingimpairmentlossorprofitinthecurrentprofitsandlosses.

5.10Inventories

5.10.1CategoriesofinventoriesTheinventoriesoftheGroupmainlyincluderawmaterials,goodsinprocessandfinishedgoods.Inventoriesareinitiallymeasuredatcost.Inventorycostsincludepurchasecosts,processingcostsandotherexpensesincurredtobringinventorytoitscurrentlocationandcondition.TheagriculturalproductsharvestedaretreatedinaccordancewiththeAccountingStandardforBusinessEnterprisesNo.1–Inventories.

5.10.2Valuationmethodofinventoriesupondelivery

Theactualcostofinventoriesupondeliveryiscalculatedbytheweightedaveragemethod.

5.10.3DeterminationbasisfornetrealisablevalueofinventoriesOnthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Ifthenetrealisablevalueisbelowthecostofinventories,aprovisionfordeclineinvalueofinventoriesismade.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Net

realisablevalueisdeterminedonthebasisofclearevidenceobtained,andtakesintoconsiderationthepurposesofholdinginventoriesandeffectofpostbalancesheetevents.Provisionfordeclineinvalueofotherinventoriesismadebasedontheexcessofcostofinventoryoveritsnetrealisablevalueonanitem-by-itembasis.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealisablevalueofinventoriesishigherthantheircost,theoriginalprovisionfordeclineinvalueisreversedandthereversalisincludedinprofitorlossfortheperiod.

5.10.4Inventorycountsystem

Theperpetualinventorysystemismaintainedforstocksystem.

5.10.5Amortizationmethodforlowcostandshort-livedconsumableitemsandpackagingmaterials

Packagingmaterialsandlowcostandshort-livedconsumableitemsareamortizedusingtheimmediatewrite-offmethod.

5.11Non-currentassetsheldforsale

Non-currentassetsanddisposalgroupsareclassifiedasheldforsalecategorywhentheGrouprecoversthebookvaluethroughasale(includinganexchangeofnonmonetaryassetsthathascommercialsubstance)ratherthancontinuinguse.Non-currentassetsordisposalgroupsclassifiedasheldforsalearerequiredtosatisfythefollowingconditions:(1)theassetordisposalgroupisavailableforimmediatesaleinitspresentconditionsubjectonlytotermsthatareusualandcustomaryforsalesofsuchassetordisposalgroup;(2)thesaleishighlyprobable,i.e.theGrouphasmadearesolutionaboutsellingplanandobtainedaconfirmedpurchasecommitmentandthesaleisexpectedtobecompletedwithinoneyear.TheGroupmeasurestheno-currentassetsordisposalgroupsclassifiedasheldforsaleatthelowerof

theircarryingamountandfairvaluelesscoststosell.Wherethecarryingamountishigherthanthenetamountoffairvaluelesscoststosell,carryingamountshouldbereducedtothenetamountoffairvaluelesscoststosell,andsuchreductionisrecognizedinimpairmentlossofassetsandincludedinprofitorlossfortheperiod.Meanwhile,provisionforimpairmentofheld-for-saleassetsaremade.Whenthereisincreaseinthenetamountoffairvalueofnon-currentassetsheldforsalelesscoststosellOnthebalancesheetdate,theoriginaldeductionshouldbereversedinimpairmentlossofassetsrecognizedaftertheclassificationofheld-for-salecategory,andthereverseamountisincludeinprofitorlossfortheperiod.Non-currentassetsheldforsaleinnon-currentassetsarenotsubjecttodepreciationoramortization.

5.12Long-termequityinvestments

5.12.1Judgmentbasisofcontrol,jointcontrolandsignificantinfluenceControlisthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Jointcontrolisthecontractuallyagreedsharingofcontroloveraneconomicactivity,andexistsonlywhenthestrategicfinancialandoperatingpolicydecisionsrelatingtotheactivityrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontroloverthosepolicies.Whendeterminingwhetheraninvestingenterpriseisabletoexercisecontrolorsignificantinfluenceoveraninvestee,theeffectofpotentialvotingrightsoftheinvestee(forexample,warrantsandconvertibledebts)heldbytheinvestingenterprisesorotherpartiesthatarecurrentlyexercisableorconvertibleshallbeconsidered.

5.12.2Determinationofinitialinvestmentcost

Foralong-termequityinvestmentacquirednotinvolvingenterprisesundercommoncontrol,theinvestmentcostofthelong-termequityinvestmentisthecostofacquisition.Auditfee,legalservices,evaluationandconsultingfeesandotherrelatedmanagementcostsinacquisitionareexpensedinprofitsandlosseswhenhappened.Otherlong-termequityinvestmentsacquiredfromotherthanacquisitionsarerecognizedusing

originalcost.

5.12.3SubsequentmeasurementandrecognitionofprofitorlossLong-termequityinvestmentaccountedforusingthecostmethodThefinancialstatementoftheCompanyaccountsforlong-termequityinvestmentusingthecostmethod.AsubsidiaryisaninvesteethatiscontrolledbytheGroup.Underthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Long-termequityinvestmentisadjustedwhencapitalisaddedorrecollected.Investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee.

5.12.4Disposaloflong-termequityinvestments

Ondisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandreceivableandthecarryingamountisrecognizedinprofitorlossfortheperiod.

5.13Investmentproperties

Investmentpropertyispropertyheldtoearnrentalsorforcapitalappreciationorboth.Aninvestmentpropertyismeasuredinitiallyatcost.SubsequentexpendituresincurredforsuchinvestmentpropertyareincludedinthecostoftheinvestmentpropertyifitisprobablethateconomicbenefitsassociatedwithaninvestmentpropertywillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably.Othersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheGroupusesthecostmodelforsubsequentmeasurementofinvestmentproperties,andadoptsadepreciationoramortizationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights.Whenaninvestmentpropertyissold,transferred,retiredordamaged,theGrouprecognizesthe

amountofanyproceedsondisposalnetofthecarryingamountandrelatedtaxesinprofitorlossfortheperiod.

5.14Fixedassets

5.14.1Recognitioncondition

Fixedassetsaretangibleassetsthatareheldforuseintheproductionorsupplyofgoodsorservices,forrentaltoothers,orforadministrativepurposes,andhaveusefullivesofmorethanoneaccountingyear.AfixedassetisrecognizedonlywhenitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost.SubsequentexpendituresincurredforthefixedassetareincludedinthecostofthefixedassetandifitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably.Meanwhilethecarryingamountofthereplacedpartisderecognized.Othersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.

5.14.2Depreciationmethod

Afixedassetisdepreciatedoveritsusefullifeusingthestraight-linemethodsincethemonthsubsequenttotheoneinwhichitisreadyforintendeduse.Theusefullife,estimatednetresidualvaluerateandannualdepreciationrateofeachcategoryoffixedassetsareasfollows:

ClassificationDepreciationmethodDepreciationlifeResidualvaluerateAnnualdepreciationrate
HousesandbuildingsStraight-linedepreciation20-40years0-5%2.4%-5.0%
MachineryequipmentStraight-linedepreciation5-30years0-5%3.2%-20.0%
TransportationtoolsStraight-linedepreciation4-12years0-5%7.9%-25.0%

Estimatednetresidualvalueassumesthesituationwhereafixedassetexpireforitsestimatedusefullifeandisinitsexpectedfinalstatus.EstimatednetresidualvalueistheamountthattheGroupcan

obtainfromthedisposallessexpecteddisposalfees.

5.14.3Otherexplanations

Ifafixedassetisupondisposalornofutureeconomicbenefitsareexpectedtobegeneratedfromitsuseordisposal,thefixedassetisderecognized.Whenafixedassetissold,transferred,retiredordamaged,theamountofanyproceedsondisposaloftheassetnetofthecarryingamountandrelatedtaxesisrecognizedinprofitorlossfortheperiod.TheGroupreviewstheusefullifeandestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastonceateachfinancialyear-end,andaccountforanychangeasachangeinanaccountingestimate.

5.15ConstructioninprogressConstructioninprogressismeasuredatitsactualcosts.Theactualcostsincludevariousconstructionexpendituresduringtheconstructionperiod,borrowingcostscapitalisedbeforeitisreadyforintendeduseandotherrelevantcosts.Constructioninprogressisnotdepreciated.Constructioninprogressistransferredtoafixedassetwhenitisreadyforintendeduse.

5.16Borrowingcosts

Borrowingcostsdirectlyattributabletotheassetsmeetingthecapitalizationconditionsduringtheacquisition,constructionorproductionshallbecapitalizedwhenexpendituresforsuchassetandborrowingcostsareincurredandactivitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Capitalizationofborrowingcostsshallbeterminatedwhenthequalifyingassetbeingacquired,constructedorproducedbecomesreadyforitsintendeduseorsale.Capitalizationofborrowingcostsissuspendedduringtheperiodinwhichtheacquisition,constructionorproductionofaqualifyingassetissuspendedabnormallyandwhenthesuspensionisforacontinuousperiodofmorethan3months,untiltheacquisition,constructionorproductionoftheassetisresumed.Otherborrowingcostsarerecognizedasanexpenseintheperiodinwhichtheyareincurred.Theinterestexpensesactuallyincurredinthecurrentperiodofthespecialloanshallbecapitalizedafterdeductingtheinterestincomeobtainedbydepositingtheunusedloanfundsintothebankorthe

investmentincomeobtainedfromthetemporaryinvestment.

5.17Biologicalassets

ThebiologicalassetsoftheGroupareproductivebiologicalassets.Productivebiologicalassetsarebiologicalassets,forexample,heldfortheproductionofagriculturalproduce,provisionofservicesorleasingProductivebiologicalassetsintheGrouparevinestoproducegrapes.Aproductivebiologicalassetisinitiallymeasuredatcost.Thecostofaproductivebiologicalassetself-grownorself-bredcomprisesthosecostsnecessarilyincurredanddirectlyattributabletotheassetbeforetheassetbecomesavailableforitsintendedproductionandoperatingpurposes,andanyborrowingcostmeetingthecapitalisationcriteria.Theproductivebiologicalassetsarenotaccrueddepreciationuntilreachingtheintendedproductionandoperationpurposes.Afterreachingtheintendedproductionandoperationpurposes,theproductivebiologicalassetsareaccrueddepreciationwithintheservicelifestraight-linedepreciation.Theservicelife,estimatednetresidualvaluerateandannualdepreciationrateofdifferentproductivebiologicalassetsareasfollows:

CategoryUsefullifeEstimatednetresidualrateAnnualdepreciationrateVines20years5.0%TheGroupevaluatestheusefullifeandexpectednetsalvagevaluebyconsideringthenormalproducinglifeoftheproductivebiologicalassets.TheGroupreviewstheusefullifeandestimatednetresidualvalueofproductivebiologicalassetsandthedepreciationmethodappliedatleastonceateachfinancialyear-end,andaccountforanychangeasachangeinanaccountingestimate.Onthesale,identificationofanyshortagesduringstocktaking,deathordamageofbiologicalasset,theproceedsondisposalnetofthecarryingamountandrelevanttaxesisrecognizedinprofitorlossforthecurrentperiod.

5.18Intangibleassets

Intangibleassetsincludelanduseright,software,trademark,etc.Anintangibleassetismeasuredinitiallyatcostmethod.Whenanintangibleassetwithafiniteusefullifeisavailableforuse,itsoriginalcostlessnetresidualvalueandanyaccumulatedimpairmentlossesisamortizedoveritsestimatedusefullifeusingthestraight-linemethod.Intangibleassetswithindefiniteusefullivesarenotamortized.Theusefullivesoftheintangibleassetsareasfollows:

CategoryUsefullifeEstimatednetresidualrateAnnualamortizationrateLanduseright40-50years-2%-2.5%Software5-10years-10%-20%Trademark10years10%Exceptfortheaboveintangibleassetswithfiniteusefullife,theGroupalsohaslanduserightandtrademarkuserightwithinfiniteusefullives.LanduserightwithinfiniteusefullifereferstothepermanentlandpropertyrightheldbytheCompanyforpurchasingbyVi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSpA.(collectivelyreferredtoasthe"ChileIndomitaWineGroup")andKilikanoonEstatePtyLtd(hereinafterreferredtoas“AustralianKilikanoonEstate”)accordingtorelatedChileanandAustralianlaw,whichdoesn’tneedtobeamortized.TrademarkuserightreferstothetrademarkheldbytheGroupforpurchasingChileIndomitaWineGroupandAustralianKilikanoonEstate,whichhasnofiniteusefullife.Thevaluationoftrademarkuserightisbasedonthetrendsinthemarketandcompetitiveenvironment,productcycle,andmanaginglong-termdevelopmentstrategy.ThosebasisindicatedthetrademarkwillprovidenetcashflowstotheGroupwithinagivenperiod.BecauseitwashardtopredicttheperiodthatitwouldbringeconomicbenefitstotheGroup,theusefulliveswereuncertain.Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandAmortizationmethodattheendoftheperiod,andmakesadjustmentswhennecessary.

5.19Impairmentoflong-termassets

TheGroupandtheCompanyreviewtheimpairmentstatusoflong-termequityinvestments,fixedassets,investmentrealestate,constructioninprogress,productivebiologicalassetandintangibleassetswithfiniteusefullifeattheendofeachyear.Iftheassetsexistimpairment,theGroupestimatestherecoverableamountoftheassets.Intangibleassetswithindefiniteusefullifeandintangibleassets

notyetavailableforusearetestedforimpairmentannually,irrespectiveofwhetherthereisanyindicationthattheassetsmaybeimpaired.Recoverableamountisestimatedonindividualbasis.Ifitisnotpracticaltoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetgrouptowhichtheassetbelongswillbeestimated.Therecoverableamountofanassetisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Ifrecoverableamountofassetsislessthanbookvalue,thedifferenceisrecognizedasimpairmentprovisionandexpensedincurrentperiod.Goodwillistestedforimpairmentatleastattheendofeachyear.Forthepurposeofimpairmenttesting,goodwillisconsideredtogetherwiththerelatedassetsgroup(s),i.e.,goodwillisreasonablyallocatedtotherelatedassetsgroup(s)oreachofassetsgroup(s)expectedtobenefitfromthesynergiesofthecombination.Animpairmentlossisrecognizediftherecoverableamountoftheassetsgrouporsetsofassetsgroups(includinggoodwill)islessthanitscarryingamount.Theimpairmentlossisfirstlyallocatedtoreducethecarryingamountofanygoodwillallocatedtosuchassetsgrouporsetsofassetsgroups,andthentotheotherassetsofthegrouppro-rataonthebasisofthecarryingamountofeachasset(otherthangoodwill)inthegroup.Theimpairmentisrecognizedinprofitorlossfortheperiodinwhichitisincurredandwillnotbereversedinanysubsequentperiod.

5.20Long-termunamortizedexpensesTheLong-termunamortizedexpensesareamortizedevenlyovertheperiodofestimatedearnings,andthelong-termunamortizedexpensesoftheGroupareamortizedoverthefollowingperiod:

AmortizationperiodLandrequisitionfee50yearsLandleaseprepayment50yearsGreeningfee5-20yearsLeaseholdimprovement3-5yearsOther3years

5.21Employeeremuneration

5.21.1Accountingtreatmentsofshort-termremunerationInanaccountingperiodinwhichanemployeehasrenderedservicetotheGroup,theGrouprecognizestheactuallong-termremunerationforthatserviceasaliability,andincludesinthecurrentprofitsandlossesortherelatedassetcosts.EmployeewelfareexpensesincurredbytheGroupshallberecordedintothecurrentprofitsandlossesorrelatedassetcostsaccordingtotheactualamount.Non-monetaryemployeebenefitsaremeasuredatfairvalue.Socialinsurancessuchasmedicalinsurance,injuryinsuranceandpregnancyinsurance,housingfunds,laborunionandemployeeeducationfeespaidbytheGroupforemployees,arerecognizedasrelevantliabilityintheperiodinwhichtheemployeesprovideservice,inaccordancewiththeregulatedrecognitionbasisandpercentage.Therelatedexpendituresareincludedinthecurrentprofitsandlossesorrelatedassetcosts.

5.21.2AccountingtreatmentsofretiredbenefitsRetiredbenefitsoftheGroupareallpredeterminedprovisionplan.Intheperiodinwhichtheemployeesprovideservice,theGrouprecognizeliabilityinaccordancewiththeamountstobepaidcalculatedaccordingtothepredeterminedprovisionplan,andtherelatedexpendituresareeitherincludedincostofrelatedassetsorchargedtoprofitorlossintheperiodwhentheyareincurred.

5.21.3AccountingtreatmentsofterminationbenefitsWhenprovidingterminationbenefitstoemployees,theGrouprecognizeemployeebenefitspayrollresultingfromterminationbenefitsattheearlierof:theGroupcannotunilaterallywithdrawfromtheterminationplanortheredundancyoffer;theGrouprecognizerelevantcostsandexpensesrelatedtothepaymentofterminationbenefitsinreconstructuring.

5.22Revenue

5.22.1RevenuefromsaleofgoodsRevenuefromsaleofgoodsisrecognizedwhentheGrouphastransferredtothebuyerthesignificantrisksandrewardsofownershipofthegoods.TheGroupretainsneithercontinuingmanagerialinvolvementtothedegreeusuallyassociatedwithownershipnoreffectivecontroloverthegoodssold.TheamountofrevenuecanbemeasuredreliablyanditisprobablethattheassociatedeconomicbenefitswillflowtotheGroup.Theassociatedcostsincurredortobeincurredcanbemeasuredreliably.

5.22.2Revenuefromrenderingofservices

Whentheoutcomeofatransactioninvolvingtherenderingofservicescanbeestimatedreliably,revenueassociatedwiththetransactionshallberecognizedbyreferencethestageofcompletionofthetransactionatthereportingdate.Theoutcomeofatransactioncanbeestimatedreliably.Whentheoutcomeofthetransactioninvolvingtherenderingofservicescannotbeestimatedreliably,revenueisrecognizedonlytotheextentofthecostsincurredthatwillberecoverable,andthecostsincurredarerecognizedasexpensesfortheperiod.Whenitisnotprobablethatthecostsincurredwillberecovered,revenueisnotrecognized.

5.23Governmentgrants

Governmentgrantsaretransferofmonetaryassetsandnon-monetaryassetsfromthegovernmenttotheGroupatnoconsideration.AgovernmentgrantisrecognizedonlywhentheGroupcancomplywiththeconditionsattachingtothegrantandtheGroupwillreceivethegrant.Monetarygovernmentgrantsaremeasuredbytheamountreceivedorreceivable.

5.23.1Judgmentbasisandaccountingtreatmentsofgovernmentgrantrelatedtoanasset

Agovernmentgrantrelatedtoanassetisrecognizedasdeferredincome,andevenlyamortizedto

profitorlossovertheusefullifeoftherelatedasset.

5.23.2JudgmentbasisandaccountingtreatmentsofgovernmentgrantrelatedtoincomeForagovernmentgrantrelatedtoincome,ifthegrantisacompensationforrelatedexpensesorlossestobeincurredinsubsequentperiods,thegrantisrecognizedasdeferredincome,andrecognizedinprofitorlossovertheperiodsinwhichtherelatedcostsarerecognized.Ifthegrantisacompensationforrelatedexpensesorlossesalreadyincurred,thegrantisrecognizedimmediatelyinprofitorlossfortheperiod.AgovernmentgrantrelatedtotheGroup'sdailyactivitiesisrecognizedinotherincomebasedonthenatureofeconomicactivities;agovernmentgrantisnotrelatedtotheGroup'sdailyactivitiesisrecognizedinnon-operatingincomeandexpenses.TheCompany'sgovernmentloanswithbelow-marketrateofinterestaredirectlypaidtotheCompany,andtherelatedlowrateinterestwillwriteoffrelatedborrowingcosts.Thegovernmentloanswithbelow-marketrateofinterestobtainedbyothersubsidiariesoftheGrouparegovernmentloans,whichisprovidedbylocalbureauoffinancethroughbankwithbelow-marketrateofinterest.TheactualamountoftheloanreceivedbytheGrouprecognizedasborrowings,andtherelatedborrowingcostsarecalculatedaccordingtotheprincipaloftheloanandthebelow-marketrate.

5.24Deferredincometaxassets/deferredincometaxliabilities

Theincometaxexpensesincludecurrentincometaxanddeferredincometax.

5.24.1CurrentincometaxOnthebalancesheetdate,currentincometaxliabilities(orassets)forthecurrentandpriorperiodsaremeasuredattheamountexpectedtobepaid(orrecovered)accordingtotherequirementsoftaxlaws.

5.24.2DeferredincometaxassetsanddeferredincometaxliabilitiesFortemporarydifferencesbetweenthecarryingamountsofcertainassetsorliabilitiesandtheirtaxbase,orbetweenthenilcarryingamountofthoseitemsthatarenotrecognizedasassetsorliabilities

andtheirtaxbasethatcanbedeterminedaccordingtotaxlaws,deferredincometaxassetsandliabilitiesarerecognizedusingthebalancesheetliabilitymethod.Deferredtaxisgenerallyrecognizedforalltemporarydifferences.Deferredincometaxassetsfordeductibletemporarydifferencesarerecognizedtotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilised.However,fortemporarydifferencesassociatedwiththeinitialrecognitionofgoodwillandtheinitialrecognitionofanassetorliabilityarisingfromatransaction(notabusinesscombination)thataffectsneithertheaccountingprofitnortaxableprofits(ordeductiblelosses)atthetimeoftransaction,nodeferredtaxassetorliabilityisrecognized.Fordeductiblelossesandtaxcreditsthatcanbecarriedforward,deferredincometaxassetsarerecognizedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductiblelossesandtaxcreditscanbeutilised.Deferredincometaxliabilitiesarerecognizedfortaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandassociates,andinterestsinjointventures,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifferenceanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Deferredincometaxassetsarisingfromdeductibletemporarydifferencesassociatedwithsuchinvestmentsandinterestsareonlyrecognizedtotheextentthatitisprobablethattherewillbetaxableprofitsagainstwhichtoutilisethebenefitsofthetemporarydifferencesandtheyareexpectedtoreverseintheforeseeablefuture.Onthebalancesheetdate,deferredincometaxassetsandliabilitiesaremeasuredatthetaxrates,accordingtotaxlaws,thatareexpectedtoapplyintheperiodinwhichtheassetisrealisedortheliabilityissettled.Currentanddeferredtaxexpensesorincomearerecognizedinprofitorlossfortheperiod,exceptwhentheyarisefromtransactionsoreventsthataredirectlyrecognizedinothercomprehensiveincomeorinshareholders'equity,inwhichcasetheyarerecognizedinothercomprehensiveincomeorinshareholders'equity;andwhentheyarisefrombusinesscombinations,inwhichcasetheyadjustthecarryingamountofgoodwill.Onthebalancesheetdate,thecarryingamountofdeferredincometaxassetsisreviewedandreducedifitisnolongerprobablethatsufficienttaxableprofitswillbeavailableinthefuturetoallowthe

benefitofdeferredincometaxassetstobeutilised.Suchreductioninamountisreversedwhenitbecomesprobablethatsufficienttaxableprofitswillbeavailable.

5.24.3Netoffofincometaxes

WhentheGrouphasalegalrighttosettleonanetbasisandintendseithertosettleonanetbasisortorealisetheassetsandsettletheliabilitiessimultaneously,currenttaxassetsandcurrenttaxliabilitiesareoffsetandpresentedonanetbasis.WhentheGrouphasalegalrighttosettlecurrenttaxassetsandliabilitiesonanetbasis,anddeferredincometaxassetsanddeferredincometaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxassetsandliabilitiesonanetbasisortorealisetheassetsandliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredincometaxassetsorliabilitiesareexpectedtobereversed,deferredincometaxassetsanddeferredincometaxliabilitiesareoffsetandpresentedonanetbasis.

5.25Leases

Leasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptothelessee.Allotherleasesareclassifiedasoperatingleases.

5.25.1OperatingleaseaccountingtreatmentsTheGroupaslesseeunderoperatingleasesOperatingleasepaymentsarerecognizedonastraight-linebasisoverthetermoftherelevantlease,andareeitherincludedinthecostofrelatedassetorchargedtoprofitorlossfortheperiod.Initialdirectcostsincurredarechargedtoprofitorlossfortheperiod.TheGroupaslessorunderoperatingleasesRentalincomefromoperatingleasesisrecognizedinprofitorlossonastraight-linebasisoverthetermoftherelevantlease.Initialdirectcostswithmorethananinsignificantamountarecapitalised

whenincurred,andarerecognizedinprofitorlossonthesamebasisasrentalincomeovertheleaseterm.Otherinitialdirectcostswithaninsignificantamountarechargedtoprofitorlossintheperiodinwhichtheyareincurred.Contingentrentsarechargedtoprofitorlossintheperiodinwhichtheyactuallyarise.

5.26Changesinmajoraccountingpoliciesandaccountingestimates

5.26.1Changesinmajoraccountingpolicies

ContentandreasonofaccountingpolicychangeExaminationandapprovalprocedureRemarks
In2017,theMinistryofFinanceissuedtherevisedAccountingStandardsforEnterprisesNo.22–RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforEnterprisesNo.23–TransferofFinancialAssets,AccountingStandardsforEnterprisesNo.24–HedgingandAccountingStandardsforEnterprisesNo.37-PresentationofFinancialInstruments(hereinafterreferredtoas“NewFinancialInstrumentsStandards”).FromJanuary1,2019,theGroupconductedaccountingtreatmentinaccordancewiththeabovenewlyrevisedstandards.Accordingtothelinkageprovisions,noadjustmentwillbemadetotheinformationduringthecomparableperiod.Theundistributedprofitsatthebeginningofthisreportingperiodwillberetroactivelyadjustedbasedonthedifferencebetweenthenewstandardsandtheexistingstandardsonthefirstdayofimplementation.ApprovedbythesecondmeetingoftheeighthBoardofDirectors.IntheconsolidatedbalancesheetonJanuary1,2019,theaccountsreceivablechangedfromRMB242,153,083toRMB237,781,161;thedeferredincometaxassetswerechangedfromRMB285,436,259toRMB286,529,239;andtheundistributedprofitwaschangedfromRMB8,008,982,547toRMB8,005,703,605.
AccordingtotherequirementsintheNoticeonRevising,Printing&DistributingFinancialReportFormatforGeneralEnterprisesin2019(CaiKuai[2019]No.6),inthebalancesheet,theitemof“billsreceivableandaccountsreceivable”shallbedividedinto“billsreceivable”and“accountsreceivable”;andtheitemof“billspayableandaccountspayable”shallbedividedinto“billspayable”and“accountspayable”;intheincomestatement,theitemof“R&Dexpenses”notonlyreflectstheexpensedexpenditureincurredintheresearchanddevelopmentprocess,butalsoincludestheamortizationofself-developedintangibleassetslistedintheitemof“managementexpenses”.ApprovedbythesecondmeetingoftheeighthBoardofDirectors.ThechangeofaccountingpolicyhasnoimpactonthemergerandthenetprofitoftheCompanyandtheowner'sequity.

5.26.2Changesinmajoraccountingestimates

Nil

5.26.3ParticularsoffirstimplementationofNewFinancialInstrumentsStandards,newincomestandards,andnewleasestandardstoadjustthefirstimplementationofrelateditemsinthefinancialstatementsatthebeginningoftheyear

ConsolidatedBalanceSheet

Unit:Yuan

ItemDecember31,2018January1,2019Adjustedamount
Billsreceivable288,667,988-288,667,988
Accountsreceivable242,153,083237,781,161-4,371,922
Receivablesfinancing288,667,988288,667,988
Available-for-salefinancialassets467,251-467,251
Othernon-currentfinancialassets467,251467,251
Deferredincometaxassets285,436,259286,529,2391,092,980
Undistributedprofit8,008,982,5478,005,703,605-3,278,942
Totalowner’sequity9,606,099,3659,602,820,423-3,278,942

Explanationforadjustment:

Unit:Yuan

ItemBookvaluelistedaccordingtotheoriginalstandardsonDecember31,2018ImpactoftheNewFinancialInstrumentStandardsImpactofchangesinpresentationofotherfinancialstatementsBookvaluelistedaccordingtothenewstandardsonJanuary1,2019
Billsreceivableandaccountsreceivable530,821,071-530,821,071
Billsreceivable-288,667,988288,667,988
Accountsreceivable-4,371,922242,153,083237,781,161
Receivablesfinancing288,667,988288,667,988
Available-for-salefinancialassets467,251-467,251
Othernon-currentfinancialassets467,251467,251
Deferredincometaxassets285,436,2591,092,980286,529,239
Total816,724,581-3,278,942813,445,639

BalanceSheetoftheParentCompany

Unit:Yuan

ItemDecember31,2018January1,2019Adjustedamount
Billsreceivable39,885,254-39,885,254
Accountsreceivable1,447,9731,447,973
Receivablesfinancing39,885,25439,885,254
Totalowner’sequity10,023,375,58210,023,375,582

Explanationforadjustment:

Unit:Yuan

ItemBookvaluelistedaccordingtotheoriginalstandardsonDecember31,2018ImpactoftheNewFinancialInstrumentStandardsImpactofchangesinpresentationofotherfinancialstatementsBookvaluelistedaccordingtothenewstandardsonJanuary1,2019
Billsreceivableandaccountsreceivable41,333,227-41,333,227
Billsreceivable-39,885,25439,885,254
Accountsreceivable1,447,9731,447,973
Receivablesfinancing39,885,25439,885,254
Otherreceivables1,025,643,3561,025,643,356
Total1,066,976,5831,066,976,583

5.27Other

CriticaljudgmentsinapplyingaccountingpoliciesandkeyassumptionsanduncertaintiesinaccountingestimatesIntheapplicationofaccountingpoliciesassetoutinNote4,theGroupisrequiredtomakejudgments,estimatesandassumptionsaboutthecarryingamountsofitemsinthefinancialstatementsthatcannotbemeasuredaccurately,duetotheinternaluncertaintiesoftheoperatingactivities.Thesejudgments,estimatesandassumptionsarebasedonhistoricalexperienceoftheGroup'smanagementaswellasotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.TheGroupperiodicallyreviewsthejudgments,estimatesandassumptionsaboveonagoingconcernbasis.Forthosechangesinaccountingpoliciesthatonlyaffectcurrentfinancialstatements,theinfluencesarerecognizedincurrentperiod.Forthosechangesinaccountingpoliciesthataffectbothcurrentandfuturefinancialstatements,theinfluencesarerecognizedinbothcurrentandprospectiveperiods.KeyassumptionanduncertaintiesinaccountingestimatesThefollowingarekeyassumptionsforafterbalancesheetdateeventandotherfactorsofuncertainestimation.Theymaycausematerialadjustmentonbalancesheetinfollowingaccountingperiod.Deferredincometaxassetsrecognizedbydeductibleloss

Deferredincometaxassetsarerecognizedforallunusedtaxlossestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthelossescanbeutilized.Significantmanagementjudgmentisrequiredtodeterminetheamountofdeferredincometaxassetsthatcanberecognized,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.DepreciationoffixedassetsThedepreciationiscalculatedonthestraightlinebasistowrite-offthecostofeachitemoffixedassetstoitsresidualvalueoveritsestimatedusefullife.TheGroup'smanagementdeterminestheestimatedusefullivesforitsfixedassets.Thisestimateisbasedonthehistoricalexperienceoftheactualusefullivesoffixedassetsofsimilarnatureandfunctions.Ifthepreviousestimateshavesignificantchanges,depreciationexpenseswillbeadjustedinthefutureperiod.Impairmentoflong-termassetsTheGroupassesseswhethertherecoverableamountislowerthanthebookvalue.Ifthereareanyindicatorsthatthebookvalueofnon-currentassetscannotbefullyrecoverable,impairmentlossesshouldberecorded.Therecoverableamountisthehigherofanasset'sfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfromanasset.AsitisdifficultfortheGrouptoobtainthequotedmarketpriceoftheassets(orassetsgroup),thefairvalueoftheassetscannotbereliablyestimated.Whenestimatingthepresentvalueoffuturecashflows,itisnecessarytomakeimportantjudgmentsabouttheoutput,sellingprice,relatedoperatingcosts,discountrateusedincalculatingthepresentvalueoftheasset(orassetgroup),etc.Inestimatingtherecoverableamount,theGroupusesallreadilyavailableinformation,includingprojectionsofproductionvolumes,sellingpricesandassociatedoperatingcostsbasedonreasonableandsupportableassumptions.InventorydepreciationprovisionaccruedbasedonnetrealizablevalueTheinventoriesaremeasuredonthelowerofcarryingvalueandnetrealizablevalue,andprovisionshouldbemadeforimpairmentonobsoleteandslowmovinginventories.TheGroupwillreassesswhetherthenetrealizablevalueislowerthanthecarryingcostattheendofeachyear.

PreparationforthemeasurementofthefairvalueofidentifiableassetsandliabilitiesoftheacquireefromabusinesscombinationForthecostofbusinesscombination,theGroupallocatesthepurchasepricebasedonthefairvalueoftheidentifiableassetsandliabilitiesoftheacquireeonthedateofacquisition.Whenmeasuringthefairvalueoftheaboveidentifiableassetsandliabilitiesinaccordancewiththepresentvalueoffuturecashflow,themanagementoftheGroupneedstoestimatethesalesgrowthratebasedonthesupplyanddemandsituationofthefuturemarkettoforecastthecashflow,andconsidertochoosetheappropriatediscountrateforthediscount.Themanagementmayusesignificantaccountingestimatesandjudgmentsintheprogress.

6.Taxes

6.1Themaintaxesandtaxratesareasfollows:

6.2Taxincentivesandrelativepermit

NingxiaChangyuGrapeGrowingCo.,Ltd.("NingxiaGrowing"),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinNingxiaHuizuAutonomousRegion.Accordingtoclause27ofPRCCorporateIncomeTaxandclause86ofPRCCorporateIncomeTaxMeasuresforImplementation,NingxiaGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuGrapeGrowingCo.,Ltd.("GrapeGrowing"),abranchoftheCompany,whoseprincipalactivityisgrapegrowingisincorporatedinZhifuDistrict,YantaiCity,ShandongProvince.

TaxcategoryTaxationbasisTaxrates
ValueaddedtaxLeviedonthebalancebetweentheoutputtaxcalculatedbasedontaxableincomeandtheinputtaxallowedtobedeductedincurrentperiod13%,9%6%(Chinese),20%(France),21%(Spain),19%(Chile),10%(Australia)
ConsumptiontaxLeviedontaxableincome10%,20%(Chinese)
CitydevelopmenttaxLeviedoncirculationtaxactuallypaid7%(Chinese)
CorporateincometaxLeviedontaxableincome25%(Chinese),33.3%(France),28%(Spain),27%(Chile),30%(Australia)

Accordingtoclause27ofPRCCorporateIncomeTaxandclause86ofPRCCorporateIncomeTaxMeasuresforImplementation,GrapeGrowingenjoysanexemptionofcorporateincometax.XinjiangTianzhuCo.,Ltd("XinjiangTianzhu"),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewiththeNoticeonTaxPolicyIssuesconcerningFurtherImplementationoftheWesternChinaDevelopmentStrategy(CaiShui[2011]No.58),XinjiangTianzhuisqualifiedtoenjoypreferentialtaxationpolicies,whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2015to2020.XinjiangBabaoBaronChateauCo.,Ltd.("ShiheziChateau"),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewiththeNoticeonTaxPolicyIssuesconcerningFurtherImplementationoftheWesternChinaDevelopmentStrategy(CaiShui[2011]No.58),ShiheziChateauisqualifiedtoenjoypreferentialtaxationpolicies,whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2015to2020.

7.Notestoitemsintheconsolidatedfinancialstatement

7.1Monetarycapital

Unit:Yuan

ItemEndingbalanceBeginningbalance
Cashonhand70,198114,335
Bankdeposit1,756,744,0061,382,399,749
Othermonetarycapital91,818,74993,186,393
Total1,848,632,9531,475,700,477

AsatJune30,2019,therestrictedbankdepositdetailsarelistedasfollows:

Unit:Yuan

ItemEndingbalanceBeginningbalance
Housingfundoftheunit2,647,8772,611,350
Total2,647,8772,611,350

AsatJune30,2019,thedetailsofothermonetaryfundsarelistedasfollows:

Unit:Yuan

ItemEndingbalanceBeginningbalance
PledgeoffixeddepositsbyYantaiChangyuWineResearch,DevelopmentandManufactureCo.,Ltd.(“R&DCompany”)46,100,00046,100,000
Guaranteeddepositspaidfortheletterofcredit44,540,85044,540,850
AccountbalanceofAlipay1,042,3672,483,816
Guarantymoneyfortheunitcard125,53251,727
GuarantymoneyforICBCplatform10,00010,000
Total91,818,74993,186,393

AsatJune30,2019,thebankdepositsoftheGroupincludingshort-termfixeddepositsrangingfrom3monthsto12monthsamountedtoRMB180,439,250Yuan(December31,2018:RMB173,042,400Yuan),withtheinterestratesrangingfrom1.40%to2.03%.

7.2Billsreceivable

7.2.1Classificationofbillsreceivable

Unit:Yuan

TypeEndingbalanceBeginningbalance
Bankacceptance288,667,988
Tradeacceptance
Total288,667,988

7.2.2Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiod

Nil

7.2.3BillsreceivablepledgedbytheCompanyattheendofperiod

Nil

7.2.4BillsreceivableendorsedordiscountedbytheCompanyattheendofperiodbutnotyetmaturedasofthebalancesheetdate

Unit:Yuan

ItemAmountterminatingrecognitionattheendofperiodAmountnotterminatingrecognitionattheendofperiod
Bankacceptance275,760,494
Tradeacceptance
Total275,760,494

7.2.5BillsreceivablereclassifiedasaccountsreceivablebytheCompanyduetothedefaultofdrawerattheendofperiod

Nil

7.2.6BillsreceivableactuallycancelledafterverificationinthisperiodNil

7.3Accountsreceivable

7.3.1Accountsreceivabledisclosedbytype

Unit:Yuan

TypeEndingbalanceBeginningbalance
BookbalanceProvisionforbaddebtsBookvalueBookbalanceProvisionforbaddebtsBookvalue
AmountProportionAmountAccruedproportionAmountProportionAmountAccruedproportion
Accountsreceivableforwhichprovisionforbaddebtsisaccruedonasingleitembasis242,153,083100%242,153,083
Including:
Accountsreceivableforwhichprovisionforbaddebtsisaccruedonacombinedbasis191,269,049100%5,137,8572.78%186,131,192
Including:
Accountsreceivableforwhichprovisionforbaddebtsisaccruedbycreditriskfeatures191,269,049100%5,137,8572.78%186,131,192
Total191,269,049100%5,137,8572.78%186,131,192242,153,083100%242,153,083

Provisionforbaddebtsaccruedonacombinedbasis:

Unit:Yuan

NameEndingbalance
BookbalanceProvisionforbaddebtsAccruedproportion
Accountsreceivableforwhichprovisionforbaddebtsisaccruedbycreditriskfeatures191,269,0495,137,8572.78%
Total191,269,0495,137,857--

Disclosedbyage:

Unit:Yuan

AgeEndingbalance
Within1year(including)180,854,504
1-2years8,978,048
2-3years1,199,269
Over3years237,228
Total191,269,049

AsatJune30,2019,theaccountsreceivablewithownershiprestrictionswereRMB31,134,017Yuan(December31,2018:RMB52,015,032Yuan).PleaserefertoNote7.18fordetails.

7.3.2Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiodProvisionforbaddebtsaccruedinthisperiod:

Unit:Yuan

TypeBeginningbalanceoftheoriginalfinancialinstrumentsstandardsAdjustedamountinthefirstimplementationoftheNewFinancialInstrumentsStandardsBeginningbalanceoftheyearafteradjustmentChangesinthisperiodEndingbalance
AccruedWithdrawnortransferredbackCancelled
Accountsreceivableforwhichprovisionforbaddebtsisaccruedbycreditriskfeatures4,371,9224,371,922765,9355,137,857
Total4,371,9224,371,922765,9355,137,857

Therewerenoprovisionforbaddebtswithdrawnortransferredbackinthisperiod.

7.3.3Accountsreceivableactuallycancelledafterverificationinthisperiod

Nil

7.3.4Accountsreceivablecollectedbytheborrowersoftop5unitsrankedbytheendingbalance

Unit:Yuan

UnitRelationshipwiththeCompanyAmountPeriodPercentageintotalaccountsreceivable
NonggongshangSupermarket(Group)Co.,Ltd.Thirdparty10,077,717Within1year5.3%
SuguoSupermarketCo.,Ltd.Thirdparty7,168,620Within1year3.7%
Vi?edosyBodegasLasPircasThirdparty6,917,840Within1year3.6%
LianhuaSupermarketHoldingsCo.,Ltd.Thirdparty5,408,819Within1year2.8%
MARKSANDSPENCERThirdparty5,365,322Within1year2.8%
Total--34,938,318--18.3%

7.3.5Accountsreceivableterminatingrecognitionduetotransferoffinancialassets

Nil

7.3.6Accountsreceivabletransferredandincludedinassetsandliabilities

Nil

7.4Receivablesfinancing

Unit:Yuan

ItemEndingbalanceBeginningbalance
Bankacceptance372,281,872
Total372,281,872

7.5Advancepayment

7.5.1Advancepaymentlistedbyage

Unit:Yuan

AgeEndingbalanceBeginningsum
AmountProportionAmountProportion
Within1year3,490,928100%4,219,949100%
1-2years
2-3years
Morethan3years
Total3,490,928--4,219,949--

7.5.2Advancepaymentcollectedbytheprepaidpartiesoftop5unitsrankedbytheendingbalance

Unit:Yuan

CategoryofclientRelationshipwiththeGroupAmountAgeReasonforunsettlementPercentageinthetotaladvancepayment%
NingxiaVangarieWineCo.,Ltd.Thirdparty600,000Within1yearFailuretoreceivethegoods17.2%
YantaiPowerSupplyCompanyofStateGridShandongElectricPowerCompanyThirdparty500,000Within1yearPrepaidelectricitypurchasingfund14.3%
DONELLIVINIS.P.A.Thirdparty463,523Within1yearFailuretoreceivethegoods13.3%
YEDAThermalPowerConstruction&Thirdparty250,545Within1Failuretoreceivethegoods7.2%
InstallationEngineeringCo.,Ltd.year
YantaiDeyiHardwareMechanical&ElectricalCo.,Ltd.Thirdparty192,045Within1yearFailuretoreceivethegoods5.5%
Total--2,006,113----57.4%

7.6Otherreceivables

Unit:Yuan

ItemEndingbalanceBeginningbalance
Interestreceivable2,099,1091,332,681
Dividendsreceivable
Otherreceivables26,519,87421,303,405
Total28,618,98322,636,086

7.6.1Interestreceivable

Unit:Yuan

ItemEndingbalanceBeginningbalance
Fixeddeposit2,099,1091,332,681
Entrustedloan
Bondinvestment
Total2,099,1091,332,681

7.6.2Otherreceivables

7.6.2.1Otherreceivablesclassifiedbynature

Unit:Yuan

NatureEndingbookbalanceBeginningbookbalance
Depositandguarantymoneyreceivable9,991,51610,453,624
Imprestreceivable2,776,4852,274,038
Accountsreceivablefromrelatedparties1,911,880813,440
Consumptiontaxandadded-valuetaxexportrebate9,651,8936,273,882
Other2,188,1001,488,421
Total26,519,87421,303,405

7.6.2.2Disclosedbyage

Unit:Yuan

AgeEndingbalance
Within1year(including)15,284,516
1-2years1,162,933
2-3years8,302,579
AgeEndingbalance
Morethan3years1,769,846
Total26,519,874

7.6.2.3Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiodTheprovisionforbaddebtsaccruedinthisperiodwasRMB0Yuan;andthatwithdrawnortransferredbackinthisperiodwasRMB0Yuan.

7.6.2.4Otherreceivablesactuallycancelledafterverificationinthisperiod

Nil

7.6.2.5Otherreceivablescollectedbytheborrowersoftop5unitsrankedbytheendingbalance

Unit:Yuan

UnitNatureEndingbalanceAgePercentageintotalendingbalanceofotheraccountsreceivableEndingbalanceofprovisionforbaddebts
YEDAConstructionIndustryAssociationConstructionguarantymoney7,709,477Within3years29.10%
YantaiGodHorsePackingCo.,Ltd.PrintingBranchLeasepaymentreceivable1,626,880Within1year6.10%
YantaiZhongyaMedicalHealthWineCo.,Ltd.Leasepaymentreceivable285,000Within1year1.10%
YEDAFinanceBureauGuarantymoney198,056Within1year0.70%
YantaiPowerSupplyCompanyofStateGridShandongElectricPowerCompanyDeposit80,000Within1year0.30%
Total--9,899,413--37.30%

7.6.2.6Accountsreceivableinvolvinggovernmentsubsidies

Nil

7.6.2.7Otherreceivablesthatareterminatedforrecognitionduetotransferoffinancialassets

Nil

7.6.2.8Otherreceivablestransferredandthenincludedinassetsandliabilities

Nil

7.7Inventories

7.7.1Inventoryclassification

Unit:Yuan

ItemEndingbalanceBeginningbalance
BookbalanceDepreciationprovisionBookvalueBookbalanceDepreciationprovisionBookvalue
Rawmaterials88,705,17988,705,17967,267,03567,267,035
Goodsinprocess1,837,958,1081,837,958,1081,787,819,9231,787,819,923
Commoditystocks698,652,64618,534,497680,118,149894,187,72524,683,226869,504,499
Total2,625,315,93318,534,4972,606,781,4362,749,274,68324,683,2262,724,591,457

7.7.2Inventorydepreciationprovision

Unit:Yuan

ItemBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalance
AccrualOtherTransferbackorwrite-offOther
Rawmaterials
Goodsinprocess
Commoditystocks24,683,2266,148,72918,534,497
Total24,683,2266,148,72918,534,497

7.8Othercurrentassets

Unit:Yuan

ItemEndingbalanceBeginningbalance
Prepaidcorporateincometax70,523,93924,077,323
Deductibleinputtax229,478,097233,087,707
Renttobeamortized416,8651,511,366
Total300,418,901258,676,396

7.9Othernon-currentfinancialassets

Unit:Yuan

ItemEndingbalanceBeginningbalance
Other515,922
Total515,922

7.10Investmentrealestate

7.10.1Investmentrealestatebycostmeasurementmethod

Unit:Yuan

ItemHousesandbuildingsLanduserightConstructioninprogressTotal
ⅠOriginalbookvalue
1.Beginningbalance70,954,04570,954,045
2.Increaseinthisperiod
2.1Outsourcing
2.2Transferinfrominventories\fixedassets\constructioninprogress
2.3Businessmergerincrease
3.Decreaseinthisperiod
3.1Disposal
3.2Othertransferout
4.Endingbalance70,954,04570,954,045
ⅡAccumulateddepreciation&accumulatedamortization
1.Beginningbalance39,381,55639,381,556
2.Increaseinthisperiod1,012,0191,012,019
2.1Accrualoramortization1,012,0191,012,019
3.Decreaseinthisperiod
3.1Disposal
3.2Othertransferout
4.Endingbalance40,393,57540,393,575
ⅢImpairmentprovision
1.Beginningbalance
2.Increaseinthisperiod
2.1Accrual
3.Decreaseinthisperiod
3.1Disposal
3.2Othertransferout
4.Endingbalance
ⅣBookvalue
1.Endingbookvalue30,560,47030,560,470
2.Beginningbookvalue31,572,48931,572,489

7.11Fixedassets

Unit:Yuan

ItemEndingbalanceBeginningbalance
Fixedassets5,684,612,6535,749,731,667
Disposaloffixedassets
Total5,684,612,6535,749,731,667

7.11.1Particularsoffixedassets

Unit:Yuan

ItemHousesandbuildingsMachineryequipmentConstructiontoolsTotal
ⅠOriginalbookvalue:
1.Beginningbalance4,761,426,4252,665,798,81426,580,6397,453,805,878
2.Increaseinthisperiod33,949,08448,642,1641,281,84583,873,093
2.1Acquisition4,174,05213,254,3251,281,84518,710,222
2.2Transferinfromconstructioninprogress29,775,03235,387,83965,162,871
2.3Businessmergerincrease
3.Decreaseinthisperiod5,422,9202,867,114456,4538,746,487
3.1Disposalorretirement5,422,9202,867,114456,4538,746,487
4.Endingbalance4,789,952,5892,711,573,86427,406,0317,528,932,484
ⅡAccumulateddepreciation
1.Beginningbalance621,266,7691,062,064,23720,743,2051,704,074,211
2.Increaseinthisperiod67,239,97979,376,5061,071,000147,687,485
2.1Accrual67,239,97979,376,5061,071,000147,687,485
3.Decreaseinthisperiod4,489,4472,518,788433,6307,441,865
3.1Disposalorretirement4,489,4472,518,788433,6307,441,865
4.Endingbalance684,017,3011,138,921,95521,380,5751,844,319,831
ⅢImpairmentprovision
1.Beginningbalance
2.Increaseinthisperiod
2.1Accrual
3.Decreaseinthisperiod
3.1Disposalorretirement
4.Endingbalance
ⅣBookvalue
1.Endingbookvalue4,105,935,2881,572,651,9096,025,4565,684,612,653
2.Beginningbookvalue4,140,159,6561,603,734,5775,837,4345,749,731,667

AsatJune30,2019,thenetvalueofthefixedassetswithownershiprestrictionswasRMB353,013,613Yuan(December31,2018:RMB412,006,421Yuan).PleaserefertoNote7.51fordetails.

7.11.2Particularsoftemporarilyidlefixedassets

Unit:Yuan

ItemOriginalbookvalueAccumulateddepreciationDepreciationreservesBookvalueRemarks
Temporarilyidlefixedassets124,758,07567,762,89156,995,184

7.11.3Particularsoffixedassetsunderfinanceleases

Nil

7.11.4Fixedassetsunderoperatinglease

Unit:Yuan

ItemEndingbookvalue
Machineryequipment115,720

7.11.5Particularsoffixedassetswithoutpropertycertificates

Unit:Yuan

ItemBookvalueReasonfornotreceivingthepropertycertificate
IndustrialProductionCenteroftheR&DCompany1,733,732,977Undertransaction
DormitoryBuilding,MainBuildingandReceptionBuildingofChang’anChateau280,709,011Undertransaction
EuropeanTown,MainBuildingandServiceBuildingofBeijingChateau184,687,307Undertransaction
MainBuildingofYantaiChateauChangyuTinlot81,685,892Undertransaction
FermentationWorkshopandWineStorageWorkshopofXinjiangTianzhu17,499,421Undertransaction
OfficeBuildingandPackagingWorkshopofIcewineValley9,044,465Undertransaction
Wine-makingWorkshopofChangyu(Jingyang)4,017,018Undertransaction
OfficeBuilding,LaboratoryBuildingandWorkshopofFermentationCenter3,572,175Undertransaction
FinishedGoodsWarehouseandWorkshopofKylinPackaging2,351,511Undertransaction
OfficeBuildingofGuangxiGuilinOfficeandOfficeBuildingofShanxiDatongOffice1,110,076Undertransaction
Total2,318,409,853Undertransaction

7.12Constructioninprogress

7.12.1Particularsofconstructioninprogress

ItemEndingbalanceBeginningbalance
BookbalanceImpairmentprovisionBookvalueBookbalanceImpairmentprovisionBookvalue
Research,Development&ManufactureCenter(“ChangyuWineCityComplex”)672,975,492672,975,492608,553,617608,553,617
ConstructionProjectofChang’anChateau17,537,82817,537,82839,793,89339,793,893
ConstructionProjectofNingxiaChateau47,371,35347,371,35347,163,86347,163,863
ConstructionProjectofShihezi379,517379,51723,664,12423,664,124
Chateau
ConstructionProjectofSalesCompany19,145,18119,145,18117,985,88217,985,882
ConstructionProjectsofOtherCompanies32,463,00232,463,00222,135,21222,135,212
Total789,872,373789,872,373759,296,591759,296,591

7.12.2Changesofmajorconstructioninprogressinthisperiod

Unit:Yuan

ItemBudgetBeginningbalanceIncreaseinthisperiodTransferredtofixedassetsinthisperiodOtherdecreaseinthisperiodEndingbalanceProportionofaccumulativeprojectinputinbudgetAccumulativecapitalizedamountofinterestIncluding:capitalizedamountofinterestinthisperiodCapitalizationratioofinterestinthisperiodCapitalsource
ChangyuWineCityComplex4,505,780,000608,553,617105,008,60930,903,2869,683,448672,975,49276.60%16,954,0391.20%and4.3%Loansformfinancialinstitutionsandself-raisedfunds
ConstructionProjectofChang’anChateau620,740,00039,793,8937,523,27029,779,33517,537,828109.90%Self-raisedfunds
ConstructionProjectofShiheziChateau780,000,00023,664,1244,615,627138,17227,762,062379,51796.90%Self-raisedfunds
ConstructionProjectofSalesCompany161,350,00017,985,8821,262,622103,32319,145,18198.50%Self-raisedfunds
ConstructionProjectofNingxiaChateau41,415,00047,163,863207,49047,371,353102.60%Self-raisedfunds
Total6,109,285,000737,161,379118,617,61860,924,11637,445,510757,409,371----16,954,039--

AsatJune30,2019,therewasnoindicationforimpairmentofconstructioninprogressoftheGroup,sonoprovisionforimpairmentwasmade.

7.13Productivebiologicalassets

7.13.1Productivebiologicalassetsbycostmeasurementmethod

Unit:Yuan

ItemPlantationTotal
ImmatureMature
ⅠOriginalbookvalue
1.Beginningbalance13,837,608235,246,042249,083,650
2.Increaseinthisperiod-4,798,4549,593,7454,795,291
2.1Outsourcing
2.2Selfcultivation2,388,3102,406,9814,795,291
Theimmatureturntothemature-7,186,7647,186,764
3.Decreaseinthisperiod
3.1Disposal
3.2Other
4.Endingbalance9,039,154244,839,787253,878,941
ⅡAccumulateddepreciation
1.Beginningbalance39,817,27739,817,277
2.Increaseinthisperiod6,448,2256,448,225
2.1Accrual6,448,2256,448,225
3.Decreaseinthisperiod
3.1Disposal
3.2Other
4.Endingbalance46,265,50246,265,502
ⅢImpairmentprovision
1.Beginningbalance
2.Increaseinthisperiod
2.1Accrual
3.Decreaseinthisperiod
3.1Disposal
3.2Other
4.Endingbalance
ⅣBookvalue
1.Endingbookvalue9,039,154198,574,285207,613,439
2.Beginningbookvalue13,837,608195,428,765209,266,373

AsatJune30,2019,noownershipofthebiologicalassetswasrestricted.AsatJune30,2019,therewasnoindicationforimpairmentofbiologicalassetsoftheGroup,sonoprovisionwasmade.

7.14Intangibleassets

7.14.1Particularsofintangibleassets

Unit:Yuan

ItemLanduserightSoftwareuserightTrademarkTotal
ⅠOriginalbookvalue
1.Beginningbalance528,252,91175,822,057170,068,735774,143,703
2.Increaseinthisperiod16,176107,993124,169
2.1Acquisition16,176107,993124,169
2.2InternalR&D
2.3Businessmergerincrease
3.Decreaseinthisperiod
3.1Disposal
4.Endingbalance528,269,08775,930,050170,068,735774,267,872
ⅡAccumulatedamortization
1.Beginningbalance78,070,91026,722,81513,876,519118,670,244
2.Increaseinthisperiod5,231,2603,185,49321,9898,438,742
2.1Accrual5,231,2603,185,49321,9898,438,742
3.Decreaseinthisperiod
3.1Disposal
4.Endingbalance83,302,17029,908,30813,898,508127,108,986
ⅢImpairmentprovision
1.Beginningbalance
2.Increaseinthisperiod
2.1Accrual
3.Decreaseinthisperiod
3.1Disposal
4.Endingbalance
ⅣBookvalue
1.Endingbookvalue444,966,91746,021,742156,170,227647,158,886
2.Beginningbookvalue450,182,00149,099,242156,192,216655,473,459

AsatJune30,2019,thenetvalueoftheintangibleassetswithownershiprestrictionswasRMB215,282,924Yuan(December31,2018:RMB218,070,414Yuan).PleaserefertoNote7.51fordetails.

7.14.2Particularsoflanduserightofthatnotreceivingthepropertycertificate

Nil

7.15Goodwill

Unit:Yuan

NameoftheinvestedunitormatterforminggoodwillBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalance
FormedbybusinessmergerOtherDisposalOther
EtablissementsRoulletFransac(“RoulletFransac”)13,112,52513,112,525
DicotPartners,S.L(“AtrioGroup”)92,391,90192,391,901
SocieteCivileArgricoleDuChateauDeMirefleurs(“Mirefleurs”)15,761,44015,761,440
IndomitaWineCompanyChile,SpA6,870,1156,870,115
KilikanoonEstate,Australia37,063,13037,063,130
Total165,199,111165,199,111

7.16Long-termunamortizedexpenses

Unit:Yuan

ItemBeginningbalanceIncreaseinthisperiodAmortizationinthisperiodOtherdecreaseEndingbalance
Landleasefees54,217,7631,073,81153,143,952
Landacquisitionfees43,427,739215,29343,212,446
Afforestationfees141,224,4729,683,4494,615,467146,292,454
Renovationcosts775,64727,762,062476,30028,061,409
Other4,994,7951,134,446281,7915,847,450
Total244,640,41638,579,9576,662,662276,557,711

Remarks:Theamounttransferredtolong-termunamortizedexpensesfromconstructioninprogresswasRMB38,234,356Yuan.

7.17Deferredincometaxassets/liabilities

7.17.1Un-offsetdeferredincometaxassets

Unit:Yuan

ItemEndingBalanceBeginningBalance
DeductibletemporarydifferenceDeferredincometaxassetsDeductibletemporarydifferenceDeferredincometaxassets
Unrealizedprofitsfrominter-companytransactions383,079,45395,769,863602,476,583150,619,145
Unpaidbonus107,118,80426,808,863141,808,25735,485,814
Dismissionwelfare21,108,5265,277,13226,186,2436,546,561
Assetimpairmentprovision23,672,3545,918,08824,683,2266,170,807
Deductibleloss326,241,08483,564,280262,937,99967,566,387
Deferredincome78,596,14917,132,92886,227,29318,868,963
Assetvaluationimpairment649,811175,449661,415178,582
Total940,466,181234,646,6031,144,981,016285,436,259

7.17.2Un-offsetdeferredincometaxliabilities

Unit:Yuan

ItemEndingBalanceBeginningBalance
TaxabletemporarydifferenceDeferredincometaxliabilitiesTaxabletemporarydifferenceDeferredincometaxliabilities
Assetsappraisalappreciationinbusinessmergerundernon-commoncontrol69,392,88818,629,61281,338,13022,010,647
Total69,392,88818,629,61281,338,13022,010,647

7.17.3Detailsofunconfirmeddeferredincometaxassets

Unit:Yuan

ItemEndingbalanceBeginningbalance
Deductabletemporarydifference
Deductibleloss157,722,738171,430,831
Total157,722,738171,430,831

7.17.4Deductiblelossesofunconfirmeddeferredincometaxassetswillexpirein:

Unit:Yuan

YearEndingsumBeginningsumRemark
202045,960,76645,960,766
202182,685,21382,685,213
202214,362,78714,362,787
20236,987,18221,110,792
20247,726,790
Total157,722,738164,119,558--

7.18Short-termloans

7.18.1Classificationofshort-termloans

Unit:Yuan

ItemEndingbalanceBeginningbalance
Pledgeloan
Mortgageloan65,507,51779,467,832
Guaranteedloan7,145,8353,331,870
Fiduciaryloan605,517,315605,202,708
Total678,170,667688,002,410

AsatJune30,2019,themortgageloansreferredtoaloanoffactoringbusinessforaccountsreceivableofEUR3,982,860(equivalenttoRMB31,134,017Yuan)thatHaciendayVinedosMarquesdelAtrio,S.L.U.(“MarquesdelAtrio”)transactedinsuchbanksasBancodeSabadell,S.A.(December31,2018:RMB52,015,032Yuan),aloanofUSD5,000,000(equivalenttoRMB34,373,500Yuan)thatIndomitaWineCompanyChile,SpAborrowedfromBBVAbankbymortgageofitsfixedassetsofCLP2,931,854,000(equivalenttoRMB29,904,911Yuan)(December31,2018:RMB27,452,800Yuan).TheguaranteedloanreferredtoaloanborrowedbytheCompanyfromAustralia&NewZealandBankingwithaguaranteeforKilikanoonEstate,AustraliaofAUD1,483,893(equivalenttoRMB7,145,835Yuan)(December31,2018:RMB3,331,870Yuan).

7.19Accountspayable

7.19.1Listofaccountspayable

Unit:Yuan

ItemEndingbalanceBeginningbalance
Tradeaccountspayable539,459,878713,572,881
Total539,459,878713,572,881

7.19.2ExplanationofsignificantaccountspayableagedmorethanoneyearAsatJune30,2019,therewerenosignificantaccountspayableagedmorethanoneyear.

7.20Advancesfromcustomers

7.20.1Listofadvancesfromcustomers

Unit:Yuan

ItemEndingsumBeginningsum
Advancesfromcustomers177,549,080226,075,244
Total177,549,080226,075,244

7.20.2AdvancesfromcustomersofsignificantamountagedmorethanoneyearAsatJune30,2019,theCompanyhadnoadvancesfromcustomersofsignificantamountagedmorethanoneyear.

7.21Employeeremunerationspayable

7.21.1Listofemployeeremunerationspayable

Unit:Yuan

ItemBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalance
1.Short-termremuneration185,893,109214,884,524245,100,514155,677,119
2.Post-employmentwelfare–definedcontributionplan224,86527,605,71327,149,855680,723
3.Dismissionwelfare26,186,2431,310,2476,387,96421,108,526
4.Otherwelfareduewithinoneyear
Total212,304,217243,800,484278,638,333177,466,368

7.21.2Listofshort-termremunerations

Unit:Yuan

ItemBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalance
1.Salaries,bonuses,allowancesandsubsidies187,685,990188,388,623215,640,569160,434,044
2.Staffwelfare3,014,2884,969,2297,875,107108,410
3.Socialinsurancecharges461,09514,314,93114,435,562340,464
Including:Medicalinsurance460,44012,510,73512,656,526314,649
Injuryinsurance655914,251889,09125,815
Maternityinsurance889,945889,945
4.Housingfund52,5106,147,0066,191,2728,244
5.Unionfeeandstaffeducationfee1,914,0791,064,7351,033,6351,945,179
6.Short-termcompensatedabsences
7.Short-termprofit-sharingplan
Minus:Thosedividedintonon-currentassets7,234,85375,6317,159,222
Total185,893,109214,884,524245,100,514155,677,119

7.21.3Listofdefinedcontributionplan

Unit:Yuan

ItemBeginningbalanceIncreaseDecreaseEndingbalance
1.Basicendowmentinsurance224,53326,914,03326,457,843680,723
2.Unemploymentinsurance332691,680692,012
3.Enterpriseannuitypayment
Total224,86527,605,71327,149,855680,723

7.21.4Dismissionwelfare

Unit:Yuan

ItemBeginningbalanceIncreaseDecreaseEndingbalance
1.Compensationforserveroflaborrelation1,275,3871,275,387-
2.Compensationforearlyretirement26,186,24334,8605,112,57721,108,526
ItemBeginningbalanceIncreaseDecreaseEndingbalance
Total26,186,2431,310,2476,387,96421,108,526

7.22Taxesandduespayable

Unit:Yuan

ItemEndingbalanceBeginningbalance
Valueaddedtax28,114,27436,442,868
Consumptiontax9,089,44728,636,646
Corporateincometax59,137,35740,869,507
Individualincometax276,0315,669,099
Urbanmaintenanceandconstructiontax2,407,0094,337,712
Propertytax5,406,7005,165,128
Urbanlandusetax2,255,3442,476,527
Other2,314,6405,315,303
Total109,000,802128,912,790

7.23Otherpayables

Unit:Yuan

ItemEndingbalanceBeginningbalance
Interestpayable2,669,667712,826
Dividendspayable412,646,375
Otherpayables562,350,965607,767,064
Total977,667,007608,479,890

Remarks:Otherpayablesintheabovelistrefertothepayablesafterdeductinginterestpayableanddividendspayable.

7.23.1Interestpayable

Unit:Yuan

ItemEndingbalanceBeginningbalance
Interestoflong-termloanswithinterestpaidbyinstallmentandprincipalpaidonmaturity
Interestofcorporatebonds
Interestpayableofshort-termloans2,669,667712,826
Interestofpreferredshares\perpetualbondsdividedintofinancialliabilities
ItemEndingbalanceBeginningbalance
Other
Total2,669,667712,826

7.23.2Dividendspayable

Unit:Yuan

ItemEndingbalanceBeginningbalance
Ordinarystockdividends411,278,400
Preferredstockdividends/sustainabledebtdividendsdividedintoequityinstruments
Other1,367,975.00
Total412,646,375.00

7.23.3Otherpayables

7.23.3.1Otherpayableslistedbynature

Unit:Yuan

ItemEndingbalanceBeginningbalance
Dealer’sdepositpayable166,741,693159,191,138
Equipmentpurchaseandconstructioncostspayable93,902,789152,825,734
Transportationchargespayable15,579,56238,867,725
TrademarkusefeespayableforChangyuGroupCompany78,414,978
Advertisementmarketingexpensespayable209,606,19696,429,861
Employeecashdeposit869,2822,806,766
Supplier’sdepositpayable18,732,02915,901,210
Contractingfeespayable19,130,85027,070,584
Other37,788,56436,259,068
Total562,350,965607,767,064

7.23.3.2Othersignificantaccountspayableagedmorethanoneyear

Unit:Yuan

ItemEndingbalanceCauseofunpaymentorcarry-over
BeijingQinglangEcologicalAgriculture3,513,506Thecontractingfeeshaven’tbeensettled
TechnologyDevelopmentCo.,Ltd.(“BeijingQinglang”)
VASFCompany4,878,866Thecontractingfeeshaven’tbeensettled
Total8,392,372--

7.24Non-currentliabilitiesduewithinoneyear

Unit:Yuan

ItemEndingbalanceBeginningbalance
Long-termloansduewithinoneyear146,362,314118,940,788
Bondspayableduewithinoneyear
Long-termaccountspayableduewithinoneyear34,000,00034,000,000
Leaseliabilitiesduewithinoneyear
Total180,362,314152,940,788

7.25Othercurrentliabilities

Unit:Yuan

ItemEndingbalanceBeginningbalance
Short-termbondspayable
Refundspayable
Deferredincome14,545,25415,860,254
Total14,545,25415,860,254

7.26Long-termloans

7.26.1Classificationoflong-termloans

Unit:Yuan

ItemEndingbalanceBeginningbalance
Pledgeloan
Mortgageloan3,529,6553,924,916
Guaranteedloan98,156,000110,750,000
Fiduciaryloan64,263,59541,805,746
Total165,949,250156,480,662

Descriptionoftheclassificationoflong-termloans:

Unit:Yuan

ItemEndingbalanceLong-termloanduewithinoneyearLong-termloandueoveroneyear
Pledgeloan
Mortgageloan6,616,3773,086,7223,529,655
Guaranteedloan116,906,00018,750,00098,156,000
Fiduciaryloan188,789,187124,525,59264,263,595
Total312,311,564146,362,314165,949,250

AsatJune30,2019,theguaranteedloanreferredtothelong-termloanofRMB68,750,000YuanborrowedbytheCompanyfortheR&DCompanybymeansofcreditguarantee(December31,2018:81,250,000Yuan),whichwasborrowedfromAustralia&NewZealandBankingbytheCompanyforKilikanoonEstate,AustraliaofAUD10,000,000(equivalenttoRMB48,156,000Yuan)(December31,2018:48,250,000Yuan).ThemortgageloanreferredtotheloanofEUR678,868(equivalenttoRMB5,306,710Yuan)borrowedfromPopularEspa?olbyMarquesdelAtriobymortgagingitsfixedassetsofEUR2,900,925(equivalenttoRMB22,676,531Yuan)(December31,2018:RMB6,749,944Yuan).KilikanoonEstate,AustraliaborrowedaloanofAUD271,963(equivalenttoRMB1,309,667Yuan)bypledgingitsfixedassetsofAUD503,163(equivalenttoRMB2,423,032Yuan)fromNABbank(December31,2018:RMB48,250,000Yuan).

7.27Long-termaccountspayable

7.27.1Long-termaccountspayablelistedbynature

Unit:Yuan

ItemEndingbalanceBeginningbalance
ChinaAgriculturalDevelopmentKeyConstructionFund201,000,000225,000,000
Total201,000,000225,000,000

In2016,AgriculturalDevelopmentFundinvestedRMB305,000,000YuanintheResearch,Development&ManufactureCompany,accountingfor37.9%oftheregisteredcapital.Accordingtotheinvestmentagreement,itisagreedthatAgriculturalDevelopmentFundwilltakebacktheinvestmentfundintenyearsandobtainfixedincomeaccordingtoyear,whichis1.2%oftheremainingprincipal.Exceptfortheabovefixedincome,theAgriculturalDevelopmentFundshallnotenjoyotherprofitsoftheResearch,Development&ManufactureCompanyorbearthelossesoftheResearch,Development&ManufactureCompany.Accordingly,theinvestmentoftheAgriculturalDevelopmentFundintheResearch,Development&ManufactureCompanyisequityinvestmentnominally,whichisdebtinvestment(financediscountinterestloan)indeed.TheGroupincludedtheinvestmentoftheAgriculturalDevelopmentFundinlong-termaccountspayablemeasuredbyamortizedcost.FromJanuarytoJune2019,theGroupgavebacktheprincipalofRMB24,000,000Yuan.RefertoNote7.51fordetailsofmortgagedandpledgedassets.

Unit:Yuan

Balanceoflong-termaccountspayableLong-termaccountspayableduewithinoneyearLong-termaccountspayabledueinoneyearlater
235,000,00034,000,000201,000,000

7.28Deferredincome

Unit:Yuan

ItemBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalanceFormingreason
Governmentalsubsidy86,227,2934,465,39812,096,54278,596,149
Minus:Thoseincludedincurrentliabilities15,860,2541,315,00014,545,254
Non-currentliabilities70,367,0394,465,39810,781,54264,050,895--

Projectsrelatedtogovernmentalsubsidy

Unit:Yuan

ItemofliabilitiesBeginningbalanceAmountofsubsidynewlyincreasedinthisperiodAmountincludedinnon-operatingrevenueinthisperiodAmountincludedinotherincomeinthisperiodAmountoffsetthecostexpensesOtherchangesEndingbalanceRelatedtoassets/income
Grapebulkwinebrewingproject3,304,500717,4502,587,050Relatedtoassets
RewardforinvestmentinfixedassetsofChateauShiheziproject6,996,6001,140,0005,856,600Relatedtoassets
IndustrialrevitalizationandtechnicaltransformationprojectinXinjiang15,642,000711,00014,931,000Relatedtoassets
Specialsubsidyfor4,240,000530,0003,710,000Relatedtoassets
ItemofliabilitiesBeginningbalanceAmountofsubsidynewlyincreasedinthisperiodAmountincludedinnon-operatingrevenueinthisperiodAmountincludedinotherincomeinthisperiodAmountoffsetthecostexpensesOtherchangesEndingbalanceRelatedtoassets/income
supportinginfrastructure
Tourismdevelopmentfundsubsidyproject500,000500,000Relatedtoincome
Constructionprojectofgrapebrewingproductioncapacity(Huanren)3,200,000200,0003,000,000Relatedtoassets
Electronictraceabilitysystemprojectofwine2,525,257333,5272,191,730Relatedtoassets
Wineindustrydevelopmentproject558,00093,000465,000Relatedtoassets
Peninsulablueeconomiczoneconstructionproject6,000,0001,000,0005,000,000Relatedtoassets
Technicaltransformationprojectofinformation-basedsystemconstructionengineering2,900,000290,0002,610,000Relatedtoassets
Cross-bordere-commerceproject880,25667,114813,142Relatedtoincome
Fundforwaterpollutiontreatmentproject206,53056,801149,729Relatedtoincome
Infrastructureconstructionproject1,718,75062,5001,656,250Relatedtoassets
Supportingfundforindustrialdevelopment32,800,0002,050,00030,750,000Relatedtoassets
Subsidyforeconomicandenergy-savingtechnicaltransformationproject1,026,40064,150962,250Relatedtoassets
Specialfundfor1,639,00081,0001,558,000Relatedtoassets
ItemofliabilitiesBeginningbalanceAmountofsubsidynewlyincreasedinthisperiodAmountincludedinnon-operatingrevenueinthisperiodAmountincludedinotherincomeinthisperiodAmountoffsetthecostexpensesOtherchangesEndingbalanceRelatedtoassets/income
efficientwater-savingirrigationproject
Guidingfundforthedevelopmentofserviceindustry2,000,0004,200,0004,700,0001,500,000Relatedtoincome
Subsidyforboilerrenovationanddemolition90,00090,000Relatedtoincome
Subsidyformechanicaldevelopment265,398265,398Relatedtoassets
Total86,227,2934,465,39812,096,54278,596,149
Minus:Thoseincludedincurrentliabilities15,860,2541,315,00014,545,254
Non-currentliabilities70,367,0394,465,39810,781,54264,050,895

7.29Othernon-currentliabilities

Unit:Yuan

ItemEndingbalanceBeginningbalance
Employeeremunerationspayable7,159,2227,234,853
Total7,159,2227,234,853

AsatJune30,2019,theemployeeremunerationspayablereferredtothejobsecuritydepositdeductedfromtheyear-endbonusoftheemployeeshigherthansalesmanageroftheCompanyinproportion,whichwillbepaidfrom2020to2022aspredicted.

7.30Sharecapital

Unit:Yuan

BeginningbalanceIncreaseordecrease(+,-)inthisperiodEndingbalance
NewlyissuedsharesAllocatedsharesSharetransferredfromaccumulationOtherSubtotal
fund
Totalshares685,464,000685,464,000

7.31Capitalreserves

Unit:Yuan

ItemBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalance
Capitalpremium(Sharecapitalpremium)560,038,853560,038,853
Othercapitalreserves5,916,5885,916,588
Total565,955,441565,955,441

7.32Othercomprehensiveincome

Unit:Yuan

ItemBeginningbalanceAmountincurredinthisperiodEndingbalance
AmountincurredbeforeincometaxinthisperiodMinus:amountincludedinothercomprehensiveincomebeforeandtransferredtoprofitorlossinthisperiodMinus:incometaxexpensesAttributabletoparentcompanyaftertaxAttributabletominorityshareholdersaftertax
1.Othercomprehensiveincomenottobereclassifiedintoprofitandlosslater
Including:changeinnetliabilitiesandnetassetsfromrecalculateddefinedbenefitplan
Shareenjoyedinothercomprehensiveincomenottobereclassifiedintoprofitandlossininvestedunitunderequitylaw
2.Othercomprehensiveincometobereclassifiedintoprofitandlosslater2,965,377-4,657,291-3,060,721-1,596,570-95,344
Including:shareenjoyedinothercomprehensiveincometobereclassifiedintoprofitandlossin
ItemBeginningbalanceAmountincurredinthisperiodEndingbalance
AmountincurredbeforeincometaxinthisperiodMinus:amountincludedinothercomprehensiveincomebeforeandtransferredtoprofitorlossinthisperiodMinus:incometaxexpensesAttributabletoparentcompanyaftertaxAttributabletominorityshareholdersaftertax
investedunitunderequitylaw
Profitandlossfromchangesinfairvalueoffinancialassetsforsale
Profitandlossfromreclassificationofheld-to-maturityinvestmentintofairvalueoffinancialassetsforsale
Effectivepartofprofitandlossofcash-flowhedge
DifferenceintranslationofForeignCurrencyFinancialStatement2,965,377-4,657,291-3,060,721-1,596,570-95,344
Totalothercomprehensiveincome2,965,377-4,657,291-3,060,721-1,596,570-95,344

7.33Surplusreserves

Unit:Yuan

ItemBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalance
Legalsurplusreserves342,732,000342,732,000
Freesurplusreserves
Reservefund
Enterpriseexpansionfund
Other
Total342,732,000342,732,000

7.34Undistributedprofit

Unit:Yuan

ItemEndingbalanceBeginningbalance
Undistributedprofitattheendofpriorperiodbeforeadjustment8,008,982,5477,309,081,618
TotalUndistributedprofitatthebeginningoftheperiodbeforeadjustment(increaselistedwith+,anddecreaselistedwith-)-3,278,942
Undistributedprofitatthebeginningoftheperiodafteradjustment8,005,703,6057,309,081,618
Plus:Netprofitforowneroftheparentcompany603,403,7891,042,632,929
Minus:Drawnlegalsurplus
Drawnfreesurplus
Drawncommonriskprovision
Commondividendpayable411,278,400342,732,000
Commondividendtransferredtosharecapital
Undistributedprofitattheendofperiod8,197,828,9948,008,982,547

7.35Operatingincomeandoperatingcost

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
IncomeCostIncomeCost
Mainbusiness2,541,459,605927,958,1972,818,814,912969,407,949
Otherbusiness16,815,1808,294,0289,415,1525,149,343
Total2,558,274,785936,252,2252,828,230,064974,557,292

7.36Taxesandsurcharges

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Consumptiontax68,699,65897,343,463
Urbanmaintenanceandconstructiontax18,763,62623,778,056
Educationsurcharges13,670,71717,417,976
Buildingtax14,184,91516,878,556
Landusetax5,478,0456,013,248
Stampduty1,504,3562,247,814
Other1,249,5311,597,138
Total123,550,848165,276,251

7.37Sellingexpenses

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Marketingexpenses268,185,487326,942,076
Employeeremunerations130,725,779139,247,494
Transportationexpenses53,735,62667,177,736
Trademarkusefees43,363,867
Storageandleaseexpenses24,274,91719,857,616
Depreciationexpenses20,476,63721,735,895
Advertisementexpenses26,920,25723,574,432
Conferenceexpenses8,945,9999,319,883
Design&productionexpenses2,365,7612,457,300
Servicecharges11,484,61412,459,237
Travelexpenses11,822,54810,886,711
Water,electricityandgascharges7,697,3257,166,936
Office&postagecosts2,801,7062,349,806
Packingexpenses3,971,4863,873,287
Publicsecurity&clean-keepingexpenses2,214,4792,336,546
Businessentertainmentexpenses1,763,3071,995,516
Other14,584,87315,914,695
Total591,970,801710,659,033

7.38Managementexpenses

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Employeeremunerations62,572,29560,660,238
Depreciationexpenses31,887,69735,410,914
Contractingexpenses7,178,1067,178,106
Repairexpenses8,253,8977,076,148
Officeexpenses10,177,65110,977,189
Amortizationexpenses7,677,8499,520,182
Afforestationfees7,682,9466,493,556
Safeproductioncosts2,357,0162,422,526
Rentalexpenses4,766,2025,061,778
Businessentertainmentexpenses2,631,3832,815,060
Publicsecurity&clean-keepingexpenses3,356,4353,953,646
Travelexpenses2,971,4682,139,939
Other4,039,3674,255,600
Total155,552,312157,964,882

7.39R&Dexpenses

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
R&Dexpenses2,706,8112,127,006
Total2,706,8112,127,006

7.40Financialexpenses

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Interestexpenditure9,812,56018,739,528
Minus:Interestincome4,606,4177,245,870
Plus:Commissioncharges1,271,8313,005,483
Exchangegainorloss2,311,609-1,413,199
Total8,789,58313,085,942

7.41Otherincome

Unit:Yuan

SourceofotherincomeAmountincurredinthisperiodAmountincurredinpriorperiod
Supportingfundforindustrialdevelopment2,050,0002,050,000
IndustrialrevitalizationandtechnicaltransformationprojectinNingxia1,086,000
Rewardforinvestmentinfixedassets1,140,0001,140,000
Specialfundforconstructionofpeninsulablueeconomiczone1,000,0001,000,000
Other3,082,6274,012,100
Specialfundforsupportingcorporatedevelopment51,633,35015,011,673
Other5,305,91513,683,105
SourceofotherincomeAmountincurredinthisperiodAmountincurredinpriorperiod
Total64,211,89237,982,878

7.42Lossonimpairmentofcredit

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Lossonbaddebtsofaccountsreceivable-765,935
Total-765,935

7.43Lossonimpairmentofassets

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
1.Lossonbaddebts
2.Inventoryfallingpriceloss6,148,7294,730,948
3.Lossonimpairmentofavailable-for-salefinancialassets
4.Lossonimpairmentofheld-tomaturityinvestment
5.Lossonimpairmentoflong-termequityinvestment
6.Lossonimpairmentofinvestmentrealestate
7.Lossonimpairmentoffixedassets
8.Lossonimpairmentofengineeringmaterials
9.Lossonimpairmentofconstructioninprogress
10.Lossonimpairmentofproductivebiologicalassets
11.Lossonimpairmentofoilandgasassets
12.Lossonimpairmentofintangibleassets
13.Lossonimpairmentofgoodwill
14.Other
Total6,148,7294,730,948

7.44Incomefromassetdisposal

Unit:Yuan

SourceofincomefromassetdisposalAmountincurredinthisperiodAmountincurredinpriorperiod
Incomefromdisposaloffixedassets1,13893,958
Total1,13893,958

7.45Non-operatingincome

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiodAmountincludedinthecurrentnon-recurringprofits/losses
Gainsondebtrecombination
Gainsonexchangeofnon-monetaryassets
Grainsondonations
Governmentalsubsidy
Other3,575,9142,006,3923,575,914
Total3,575,9142,006,3923,575,914

7.46Non-operatingexpenses

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiodAmountincludedinthecurrentnon-recurringprofits/losses
Lossondebtrecombination
Lossonexchangeofnon-monetaryassets
Donation
Fine,penaltyandoverduefinepaidduetoviolationoflawsandadministrativeregulations10,8111,187,71310,811
Other153,239204,649153,239
Total164,0501,392,362164,050

7.47Incometaxexpenses

7.47.1Listofincometaxexpenses

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinprior
Currentincometaxexpenses161,779,976178,993,081
Deferredincometaxexpenses48,501,60232,986,654
Total210,281,578211,979,735

7.47.2Adjustmentprocessofaccountingprofitandincometaxexpenses

Unit:Yuan

ItemAmountincurredinthis
Totalprofit812,459,893
Incometaxexpensescalculatedaccordingtothelegal/applicabletaxrate203,114,973
Influenceofdifferenttaxratesapplicabletosubsidiary-66,516
Influenceofincometaxinthetermbeforeadjustment3,082,397
Influenceofnontaxableincome
Influenceofnon-deductiblecosts,expensesandlosses2,219,026
Influenceofdeductiblelossfromuseofunconfirmeddeferredincometaxassetsinpriorperiod
Influenceofdeductibletemporarydifferenceordeductiblelossofunconfirmeddeferredincometaxassetsinthisperiod1,931,698
Incometaxexpense210,281,578

7.48OthercomprehensiveincomeRefertoNote7.32fordetails.

7.49Itemsofcashflowstatement

7.49.1Othercashreceivedrelatedtooperatingactivities

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Governmentalsubsidyincome62,580,74833,687,978
Interestincome2,835,4383,302,294
Netamercementincome1,225,5111,609,829
Other1,143,9233,742,920
Total67,785,62042,343,021

7.49.2Othercashpaidrelatedtooperatingactivities

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Sellingexpenses348,849,996387,846,396
Administrativeexpenses41,017,61245,235,101
Other2,912,8593,895,589
Total392,780,467436,977,086

7.49.3Othercashreceivedrelatedtofinancialactivities

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Governmentsubsidiesreceivedrelatedtoassets3,150,000
InterestincomefrompledgeoffixeddepositsbytheR&DCompany371,431
Long-termloansfrompledgeoffixeddepositsbyR&DCompany20,000,000
Total23,521,431

7.49.4Othercashpaidrelatedtofinancialactivities

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
R&DCompany’long-termloanspledgedbyfixed-termdeposits20,000,000
Total20,000,000

7.50Supplementaryinformationtocashflowstatement

7.50.1Supplementaryinformationtocashflowstatement

Unit:Yuan

SupplementarymaterialsAmountincurredinthisperiodAmountincurredinpriorperiod
1.Cashflowsfromoperatingactivitiescalculatedbyadjustingthenetprofit:----
Netprofit602,178,315636,001,737
Plus:Provisionforimpairmentofassets-5,382,794-4,730,948
Depreciationoffixedassets,oil-and-gasassetsandproductivebiologicalassets155,147,729148,983,240
Depreciationofright-of-useassets
Amortizationofintangibleassets8,438,74211,567,301
Amortizationoflong-termdeferredexpenses6,662,6628,117,444
Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(profitlistedwith“-”)-1,138-93,958
SupplementarymaterialsAmountincurredinthisperiodAmountincurredinpriorperiod
Lossesonretirementoffixedassets(profitlistedwith“-”)
Lossesonfairvaluechange(profitlistedwith“-”)
Financialcosts(profitlistedwith“-”)13,987,87915,048,678
Investmentlosses(profitlistedwith“-”)
Decreaseindeferredincometaxassets(increaselistedwith“-”)50,789,65637,133,223
Increaseofdeferredincometaxliabilities(decreaselistedwith“-”)-3,381,035-4,146,569
Decreaseininventories(increaselistedwith“-”)123,958,750216,486,236
Decreaseinoperatingreceivables(increaselistedwith“-”)-172,662,167-305,623,146
Increaseinoperatingpayable(decreaselistedwith“-”)-280,260,593-205,989,766
Other
Netcashflowsfromoperatingactivities499,476,006552,753,472
2.Significantinvestmentandfinancingactivitiesnotinvolvingcashdepositandwithdrawal:----
Debttransferredintoassets
Convertiblecorporatebondduewithin1year
Fixedassetsunderfinancinglease
3.Netchangesofcashandcashequivalent:----
Endingbalanceofcash1,573,727,0771,428,670,462
Minus:Beginningbalanceofcash1,206,860,3341,180,889,274
Plus:Endingbalanceofcashequivalent
Minus:Beginningbalanceofcashequivalent
Netincreaseamountofcashandcashequivalent366,866,743247,781,188

7.50.2Compositionofcashandcashequivalents

Unit:Yuan

ItemEndingbalanceBeginningbalance
1.Cash1,573,727,0771,428,670,462
Including:Cashonhand70,198151,228
Bankdepositsondemand1,573,656,8791,428,519,234
Othermonetarycapitalondemand
Duefromcentralbankavailableforpayment
Duefromtheindustry
Inter-banklending
2.Cashequivalents
Including:Bondinvestmentduewithinthreemonths
3.Balanceofcashandcashequivalentsattheendofperiod1,573,727,0771,428,670,462
Including:Restricteduseofparentcompanyorsubsidiariesinthegroup

7.51Assetswithownershiporuserightrestrictions

Unit:Yuan

ItemEndingbookvalueReasonforrestriction
Monetarycapital94,466,626Loandeposit,L/Cdeposit,frozenbalanceofAlipay,housingfundandguarantymoneyfordepositinunitcard
Accountsreceivable31,134,017Pledgeofshort-termloans
Fixedassets353,013,613Pledgeofshort-termloans,long-termloansandlong-termaccountspayable
Intangibleassets215,282,924Pledgeoflong-termaccountspayable
Total693,897,180--

7.52Foreigncurrencymonetaryitems

7.52.1ForeigncurrencymonetaryitemsTheforeigncurrencymonetaryitemsoftheGroupindomesticentitiesofChinaarelistedasfollows:

Unit:Yuan

ItemEndingforeigncurrencybalanceTranslationexchangerateEndingconvertedRMBbalance
Monetarycapital----46,815,034
Including:USD6,805,4986.874746,785,757
EUR2,9017.81722,677
HKD7,5030.87976,600

7.52.2OverseasoperationalentitiesThecurrencyadoptedbytheoverseassubsidiariesoftheCompanyaccordingtothemaineconomicenvironmentwheretheoperationislocatedshallbechosenastherecordingcurrency.MarquesdelAtrioandFrancsChampsParticipationsSAS(“FrancsChamps”)bothuseeuroastherecordingcurrency,IndomitaWineCompanyChile,SpAusesChileanpesoastherecordingcurrency,andKilikanoonEstate,AustraliausesAustraliandollarasthe

recordingcurrency.Theforeigncurrencyassetsorliabilitiesofoverseassubsidiariesarelistedasfollows:

Unit:Yuan

ItemEndingforeigncurrencybalanceTranslationexchangerateEndingconvertedRMBbalance
Monetarycapital----3,553,711
Including:USD516,9266.87473,553,711
EUR
HKD
Short-termloans----75,621,700
Including:USD11,000,0006.874775,621,700
EUR
HKD

8.Changesinscopeofconsolidation

Nil

9.Equityinotherentities

9.1Equityinthesubsidiaries

9.1.1Constitutionofenterprisegroup

NameofsubsidiaryPrincipalbusinesslocationRegistrationplaceBusinessnatureProportionofshareholdingAcquisitionmode
DirectIndirect
XinjiangTianzhu(a)ShiheziCity,XinjiangUygurAutonomousRegion,ChinaShiheziCity,XinjiangUygurAutonomousRegion,ChinaManufacturingindustry60%Acquiredfromabusinesscombinationundernon-commoncontrol
RoulletFransacCognac,FranceCognac,FranceTrading100%Acquiredfromabusinesscombinationundernon-commoncontrol
MirefleursBordeaux,FranceBordeaux,FranceTrading100%Acquiredfromabusinesscombinationundernon-commoncontrol
MarquesdelAtrioNavarra,SpainNavarra,SpainSales75%Acquiredfroma
NameofsubsidiaryPrincipalbusinesslocationRegistrationplaceBusinessnatureProportionofshareholdingAcquisitionmode
DirectIndirect
businesscombinationundernon-commoncontrol
IndomitaWineSantiago,ChileSantiago,ChileSales85%Acquiredbyestablishmentorinvestment
KilikanoonEstate,AustraliaAdelaide,AustraliaAdelaide,AustraliaSales80%Acquiredfromabusinesscombinationundernon-commoncontrol
BeijingChangyuWineMarketingCo.,Ltd.(“BeijingMarketing”)BeijingCity,ChinaBeijingCity,ChinaSales50%50%Acquiredbyestablishmentorinvestment
YantaiKylinPackagingCo.,Ltd.(“KylinPackaging”)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaManufacturingindustry100%Acquiredbyestablishmentorinvestment
YantaiChateauChangyu-CastelCo.,Ltd.(“ChateauChangyu”)(b)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaManufacturingindustry70%Acquiredbyestablishmentorinvestment
Changyu(Jingyang)PioneerWineCo.,Ltd.(“JingyangWine”)XianyangCity,ShaanxiProvince,ChinaXianyangCity,ShaanxiProvince,ChinaManufacturingindustry100%Acquiredbyestablishmentorinvestment
YantaiChangyuPioneerWineSalesCo.,Ltd.(“SalesCompany”)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd.(“LangfangCastel”)(c)LangfangCity,HebeiProvince,ChinaLangfangCity,HebeiProvince,ChinaManufacturingindustry39%10%Acquiredbyestablishmentorinvestment
Changyu(Jingyang)PioneerWineSalesCo.,Ltd.(“JingyangSales”)XianyangCity,ShaanxiProvince,ChinaXianyangCity,ShaanxiProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
LangfangChangyuPioneerWineSalesCo.,Ltd.(“LangfangSales”)LangfangCity,HebeiProvince,ChinaLangfangCity,HebeiProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
ShanghaiChangyuWineMarketingCo.,Ltd.(“ShanghaiMarketing”)ShanghaiCity,ChinaShanghaiCity,ChinaSales30%70%Acquiredbyestablishmentorinvestment
NameofsubsidiaryPrincipalbusinesslocationRegistrationplaceBusinessnatureProportionofshareholdingAcquisitionmode
DirectIndirect
BeijingChangyuAFIPEco-agricultureDevelopmentCo.,Ltd.(“Eco-agricultureDevelopment”)MiyunCounty,BeijingCity,ChinaMiyunCounty,BeijingCity,ChinaSales100%Acquiredbyestablishmentorinvestment
BeijingChangyuAFIPWineChateauCo.,Ltd.(“BeijingChateau”)(d)BeijingCity,ChinaBeijingCity,ChinaManufacturingindustry90%Acquiredbyestablishmentorinvestment
YantaiChangyuWineSalesCo.,Ltd.(“WineSales”)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaSales90%10%Acquiredbyestablishmentorinvestment
YantaiChangyuPioneerInternationalWineCo.,Ltd.(“PioneerInternational”)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaSales70%30%Acquiredbyestablishmentorinvestment
HangzhouChangyuWineSalesCo.,Ltd.(“HangzhouChangyu”)HangzhouCity,ZhejiangProvince,ChinaHangzhouCity,ZhejiangProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
NingxiaGrowingYinchuanCity,NingxiaHuiAutonomousRegion,ChinaYinchuanCity,NingxiaHuiAutonomousRegion,ChinaPlantingindustry100%Acquiredbyestablishmentorinvestment
HuanrenChangyuNationalWineSalesCo.,Ltd.(“NationalWine”)BenxiCity,LiaoningProvince,ChinaBenxiCity,LiaoningProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
LiaoningChangyuIcewineValleyCo.,Ltd.(“IcewineValley”)(e)BenxiCity,LiaoningProvince,ChinaBenxiCity,LiaoningProvince,ChinaManufacturingindustry51%Acquiredbyestablishmentorinvestment
YantaiDevelopmentZoneChangyuTradingCo.,Ltd.(“DevelopmentZoneTrading”)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
ShenzhenChangyuWineMarketingCo.,Ltd.(“ShenzhenMarketing”)ShenzhenCity,GuangdongProvince,ChinaShenzhenCity,GuangdongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
YantaiFushanDistrictChangyuTradingCo.,Ltd.(“FushanTrading”)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
BeijingChangyuAFIPMiyunCounty,BeijingCity,MiyunCounty,BeijingCity,Service100%Acquiredby
NameofsubsidiaryPrincipalbusinesslocationRegistrationplaceBusinessnatureProportionofshareholdingAcquisitionmode
DirectIndirect
InternationalConferenceCenterCo.,Ltd.(“ConferenceCenter”)ChinaChinaindustryestablishmentorinvestment
BeijingChangyuAFIPTourismandCultureCo.,Ltd.(“AFIPTourism”)MiyunCounty,BeijingCity,ChinaMiyunCounty,BeijingCity,ChinaTouristindustry100%Acquiredbyestablishmentorinvestment
NingxiaWineYinchuanCity,NingxiaHuiAutonomousRegion,ChinaYinchuanCity,NingxiaHuiAutonomousRegion,ChinaManufacturingindustry100%Acquiredbyestablishmentorinvestment
YantaiChangyuChateauTinlotCo.,Ltd.(“ChateauTinlot”)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaWholesaleandretail65%35%Acquiredbyestablishmentorinvestment
Changyu(Qingtongxia)WineSalesCo.,Ltd.(“QingtongxiaSales”)QingtongxiaCity,NingxiaHuiAutonomousRegion,ChinaQingtongxiaCity,NingxiaHuiAutonomousRegion,ChinaSales100%Acquiredbyestablishmentorinvestment
ShiheziChateauShiheziCity,XinjiangUygurAutonomousRegion,ChinaShiheziCity,XinjiangUygurAutonomousRegion,ChinaManufacturingindustry100%Acquiredbyestablishmentorinvestment
NingxiaChateauYinchuanCity,NingxiaHuiAutonomousRegion,ChinaYinchuanCity,NingxiaHuiAutonomousRegion,ChinaManufacturingindustry100%Acquiredbyestablishmentorinvestment
ChateauChangyuRenaShaanxiCo.,Ltd.(“Chang’anChateau”)XianyangCity,ShaanxiProvince,ChinaXianyangCity,ShaanxiProvince,ChinaManufacturingindustry100%Acquiredbyestablishmentorinvestment
Research,Development&ManufactureCompany(f)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaManufacturingindustry68%Acquiredbyestablishmentorinvestment
Changyu(Huanren)PioneerWineCo.,Ltd.(“HuanrenWine”)BenxiCity,LiaoningProvince,ChinaBenxiCity,LiaoningProvince,ChinaWine-makingprojectpreparation100%Acquiredbyestablishmentorinvestment
XinjiangChangyuWineSalesCo.,Ltd.(“XinjiangSales”)XinjiangUygurAutonomousRegion,ChinaXinjiangUygurAutonomousRegion,ChinaSales100%Acquiredbyestablishmentorinvestment
NingxiaChangyuTradingCo.,Ltd.(“NingxiaTrading”)YinchuanCity,NingxiaHuiAutonomousRegion,ChinaYinchuanCity,NingxiaHuiAutonomousRegion,ChinaSales100%Acquiredbyestablishmentorinvestment
ShaanxiChangyuRenaWineSalesCo.,Ltd.XianyangCity,ShaanxiProvince,ChinaXianyangCity,ShaanxiProvince,ChinaSales100%Acquiredbyestablishmentor
NameofsubsidiaryPrincipalbusinesslocationRegistrationplaceBusinessnatureProportionofshareholdingAcquisitionmode
DirectIndirect
(“ShaanxiSales”)investment
PenglaiChangyuWineSalesCo.,Ltd.(“PenglaiWine”)PenglaiCity,ShandongProvince,ChinaPenglaiCity,ShandongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
LaizhouChangyuWineSalesCo.,Ltd.(“LaizhouSales”)LaizhouCity,ShandongProvince,ChinaLaizhouCity,ShandongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
FrancsChampsParticipationsSASCognac,FranceCognac,FranceInvestmenttrade100%Acquiredbyestablishmentorinvestment
LanzhouChangyuWineMarketingCo.,Ltd.(“LanzhouMarketing”)LanzhouCity,GansuProvince,ChinaLanzhouCity,GansuProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
BeijingChangyuTradingCo.,Ltd.(“BeijingTrading”)BeijingCity,ChinaBeijingCity,ChinaSales100%Acquiredbyestablishmentorinvestment
TianjinChangyuPioneerWineSalesCo.,Ltd.(“TianjinPioneer”)TianjinCity,ChinaTianjinCity,ChinaSales100%Acquiredbyestablishmentorinvestment
FuzhouChangyuPioneerWineCo.,Ltd.(“FuzhouPioneer”)FuzhouCity,FujianProvince,ChinaFuzhouCity,FujianProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
NanjingChangyuPioneerWineCo.,Ltd.(“NanjingPioneer”)NanjingCity,JiangsuProvince,ChinaNanjingCity,JiangsuProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
XianyangChangyuPioneerWineSalesCo.,Ltd.(“XianyangPioneer”)XianyangCity,ShaanxiProvince,ChinaXianyangCity,ShaanxiProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
ShenyangChangyuPioneerWineCo.,Ltd.(“ShenyangPioneer”)ShenyangCity,LiaoningProvince,ChinaShenyangCity,LiaoningProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
JinanChangyuPioneerWineCo.,Ltd.(“JinanPioneer”)JinanCity,ShandongProvince,ChinaJinanCity,ShandongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
ShanghaiChangyuPioneerWineCo.,Ltd.(“ShanghaiPioneer”)ShanghaiCity,ChinaShanghaiCity,ChinaSales100%Acquiredbyestablishmentorinvestment
FuzhouChangyuPioneerFuzhouCity,JiangxiFuzhouCity,JiangxiProvince,Sales100%Acquiredby
NameofsubsidiaryPrincipalbusinesslocationRegistrationplaceBusinessnatureProportionofshareholdingAcquisitionmode
DirectIndirect
WineCo.,Ltd.(“FuzhouPioneer”)Province,ChinaChinaestablishmentorinvestment
ShijiazhuangChangyuPioneerWineSalesCo.,Ltd.(“ShijiazhuangPioneer”)ShijiazhuangCity,HebeiProvince,ChinaShijiazhuangCity,HebeiProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
HangzhouYuzefengTradingCo.,Ltd.(“HangzhouYuzefeng”)HangzhouCity,ZhejiangProvince,ChinaHangzhouCity,ZhejiangProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
JilinChangyuPioneerWineCo.,Ltd.(“JilinPioneer”)ChangchunCity,JilinProvince,ChinaChangchunCity,JilinProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
BeijingChangyuPioneerWineSalesCo.,Ltd.(“BeijingPioneer”)BeijingCity,ChinaBeijingCity,ChinaSales100%Acquiredbyestablishmentorinvestment
HarbinChangyuPioneerWineSalesCo.,Ltd.(“HarbinPioneer”)HarbinCity,HeilongjiangProvince,ChinaHarbinCity,HeilongjiangProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
HunanChangyuPioneerWineCo.,Ltd.(“HunanPioneer”)ChangshaCity,HunanProvince,ChinaChangshaCity,HunanProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
YinchuanChangyuPioneerWineCo.,Ltd.(“YinchuanPioneer”)YinchuanCity,NingxiaHuiAutonomousRegion,ChinaYinchuanCity,NingxiaHuiAutonomousRegion,ChinaSales100%Acquiredbyestablishmentorinvestment
KunmingChangyuPioneerWineCo.,Ltd.(“KunmingPioneer”)KunmingCity,YunnanProvince,ChinaKunmingCity,YunnanProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
ChongqingChangyuPioneerWineSalesCo.,Ltd.(“ChongqingPioneer”)ChongqingCity,ChinaChongqingCity,ChinaSales100%Acquiredbyestablishmentorinvestment
WuhanChangyuPioneerWineCo.,Ltd.(“WuhanPioneer”)WuhanCity,HubeiProvince,ChinaWuhanCity,HubeiProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
HohhotChangyuPioneerWineCo.,Ltd.(“HohhotPioneer”)HohhotCity,InnerMongoliaAutonomousRegion,ChinaHohhotCity,InnerMongoliaAutonomousRegion,ChinaSales100%Acquiredbyestablishmentorinvestment
ChengduChangyuPioneerWineCo.,Ltd.(“ChengduChengduCity,SichuanProvince,ChinaChengduCity,SichuanProvince,ChinaSales100%Acquiredbyestablishmentor
NameofsubsidiaryPrincipalbusinesslocationRegistrationplaceBusinessnatureProportionofshareholdingAcquisitionmode
DirectIndirect
Pioneer”)investment
NanningChangyuPioneerWineCo.,Ltd.(“NanningPioneer”)NanningCity,GuangxiZhuangAutonomousRegion,ChinaNanningCity,GuangxiZhuangAutonomousRegion,ChinaSales100%Acquiredbyestablishmentorinvestment
LanzhouChangyuPioneerWineCo.,Ltd.(“LanzhouPioneer”)LanzhouCity,GansuProvince,ChinaLanzhouCity,GansuProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
YantaiRoullet-FransacImportedWineSalesCo.,Ltd.(“YantaiRoullet-Fransac”)YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
HefeiChangyuPioneerWineCo.,Ltd.(“HefeiPioneer”)HefeiCity,AnhuiProvince,ChinaHefeiCity,AnhuiProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
UrumchiChangyuPioneerWineCo.,Ltd.(“UrumchiPioneer”)UrumchiCity,XinjiangUygurAutonomousRegion,ChinaUrumchiCity,XinjiangUygurAutonomousRegion,ChinaSales100%Acquiredbyestablishmentorinvestment
GuangzhouChangyuPioneerWineCo.,Ltd.(“GuangzhouPioneer”)GuangzhouCity,GuangdongProvince,ChinaGuangzhouCity,GuangdongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment
WineSalesCo.,Ltd.YantaiCity,ShandongProvince,ChinaYantaiCity,ShandongProvince,ChinaSales100%Acquiredbyestablishmentorinvestment

Explanationfordifferencebetweentheproportionofshareholdingandproportionofvotingpowerinthesubsidiaries:

(a)XinjiangTianzhuisasubsidiaryoftheCompanyobtainedbymergerandacquisition,whose60%ofthesharesareheldbytheCompany.TheCompanyexercisesfullcontrolovertheoperation,investmentandfinancingpoliciesofXinjiangTianzhubycontractarrangement.ThiscontractarrangementwasexpiredonAugust6,2017.Aftertheexpiration,theminorityshareholdersofXinjiangTianzhushallenjoy/bearallrights/dutiesofshareholdersspecifiedintheArticlesofAssociation.(b)ChangyuChateauisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,whose70%ofthesharesareheldbytheCompany.TheCompanyexercisesfullcontrolovertheoperation,investmentandfinancingpoliciesofChangyuChateaubycontractarrangement.ThecontractarrangementwillexpireonDecember31,2022.(c)LangfangCastelisaSino-foreignjointventureestablishedbytheCompanyandaforeign

investor,whose49%ofthesharesareheldbytheCompanyanditssubsidiaries.TheCompanyexercisesfullcontrolovertheoperation,investmentandfinancingpoliciesofLangfangCastelbycontractarrangement.ThecontractarrangementexpiredonDecember31,2017.Aftertheexpirationofthecontractarrangement,theminorityshareholdersofLangfangCastelnormallyenjoy/undertakeallrights/dutiesoftheshareholdersagreedintheArticlesofAssociationoftheCompany.(d)BeijingChateauisalimitedliabilitycompanyjointlyestablishedbytheCompanyandYantaiDe’anandBeijingQinglang,inwhichtheCompanyholds90%oftheshares.TheCompanyexercisesfullcontrolovertheoperation,investmentandfinancingpoliciesofBeijingChateaubycontractarrangement.ThecontractarrangementwillexpireonSeptember2,2019.(e)IcewineValleyisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,whose51%ofthesharesareheldbytheCompany.TheCompanyexercisesfullcontrolovertheoperation,investmentandfinancingpoliciesofIcewineValleybycontractarrangement.ThecontractarrangementwillexpireonDecember31,2021.(f)TheResearch,Development&ManufactureCompanyisajointventureestablishedbytheCompanyandAgriculturalDevelopmentFund,whose68%oftheshareswereheldbytheCompanyonJune30,2019.AsstatedinNote7.27,theCompanyexercisesfullcontrolovertheoperation,investmentandfinancingpoliciesoftheResearch,Development&ManufactureCompanybycontractarrangement.ThecontractarrangementwillexpireonMay22,2026.UptoJune30,2019,theremaininginvestmentoftheAgriculturalDevelopmentFundaccountedfor32%oftheregisteredcapital.

9.1.2Importantnon-wholly-ownedsubsidiaries

Unit:Yuan

NameofsubsidiaryShareholdingproportionofminorityshareholdersProfit/lossattributabletominorityshareholdersinthisperiodDividenddeclaredtobedistributedtominorityshareholdersinthisperiodBalanceofminorityshareholder’sinterestattheendofperiod
XinjiangTianzhu40%-1,200,62849,412,020
MarquesdelAtrio25%464,8441,367,97529,878,944
ChangyuChateau30%12,365,016
LangfangCastel51%-752,23720,175,744
BeijingChateau10%65,133,868
IcewineValley49%33,319,062
IndomitaWine15%564,37653,709,304
KilikanoonEstate,Australia20%-301,82916,204,035

Explanationfordifferencebetweentheproportionofshareholdingandproportionofvotingpoweroftheminorityshareholdersinthesubsidiaries:SeedetailsinNote9.1.1.

9.1.3Mainfinancialinformationofimportantnon-wholly-ownedsubsidiaries

Unit:Yuan

NameofsubsidiaryEndingbalanceBeginningbalance
CurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilitiesCurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilities
XinjiangTianzhu26,891,77464,187,99891,079,771-169,9325,336,1145,166,18127,390,49566,486,79593,877,2905,336,1145,336,114
ChangyuChateau126,947,614113,877,340240,824,954163,176,906163,176,906141,298,023114,694,168255,992,191171,869,662171,869,662
LangfangCastel16,966,61615,672,54932,639,1654,033,5464,033,54617,659,51116,001,68233,661,1933,358,3223,358,322
BeijingChateau228,256,490458,433,952686,690,44245,912,26745,912,267219,973,582461,115,089681,088,67162,598,54562,598,545
IcewineValley61,748,34623,105,86084,854,20731,627,378100,00031,727,37845,194,59123,920,89069,115,48114,974,458100,00015,074,458
MarquesdelAtrio407,617,46592,937,395500,554,860304,115,81072,890,389377,006,198464,421,13099,080,668563,501,798381,659,31554,520,937436,180,252
IndomitaWine210,503,095295,300,215505,803,310138,985,1584,861,038143,846,196214,784,490300,969,342515,753,832148,359,3284,976,161153,335,489
KilikanoonEstate,Australia82,656,71564,415,130147,071,84512,813,13752,227,85365,040,99087,634,70763,759,866151,394,57313,387,94251,893,17165,281,113

Unit:Yuan

NameofsubsidiaryAmountincurredinthisperiodAmountincurredinpriorperiod
OperatingincomeNetprofitTotalcomprehensiveincomeOperatingcashflowOperatingincomeNetprofitTotalcomprehensiveincomeOperatingcashflow
XinjiangTianzhu-3,001,571-1,297,212-417,46218,803-184,572-184,57210,284,801
ChangyuChateau24,470,842-2,189,871-686,8746,946,28243,226,9102,861,4742,861,4742,419,427
Langfang-1,474,975-821,01325,8015,038,281-1,952,954-1,952,954-4,435,022
Castel
BeijingChateau90,339,526.0012,711,98522,752,8239,667,56878,502,66615,243,70015,243,70012,282,145
IcewineValley19,763,387.00-1,986,710-754,0561,903,73427,305,133905,396905,3962,018,740
MarquesdelAtrio129,064,4571,859,381-4,084,674-23,846,960148,197,8931,214,012-929,332-21,783,821
IndomitaWine86,818,8383,762,5041,880,687-1,725,57193,719,341-281,859-4,460,814-7,723,684
KilikanoonEstate,Australia22,852,809-1,509,147-4,011,4581,024,96225,904,401-115,317-3,779,883-1,469,903

10.Risksrelatedtofinancialinstruments

ThemainfinancialinstrumentsoftheGroupincludemonetarycapital,billsreceivable,

accountsreceivable,receivablesfinancing,otherreceivables,othernon-currentfinancialassets,short-termloans,non-currentliabilitiesduewithinoneyear,accountspayable,otherpayables,long-termaccountspayableandlong-termloans,etc.PleaserefertoNote7fordetailsofeachfinancialinstruments.TherisksrelatedtothesefinancialinstrumentsandriskmanagementpoliciesadoptedbytheGrouptoreducetheserisksareshownasfollows.ThemanagementoftheGroupmanagesandmonitorstheseriskexposurestoensurethattheabove-mentionedrisksarecontrolledwithinadefinedscope.TheGroupadoptssensitivityanalysistechniquestoanalyzethepossibleinfluenceofpossiblereasonablechangesofriskvariablesonthecurrentprofitsandlossesandshareholders’equity.Sinceanyriskvariablemerelychangesindependentlyandthefinalinfluenceofrelevancebetweenvariablesonthechangeofcertainriskvariablewillexertagreateffect,thefollowingcontentiscarriedoutunderthehypothesisthateachvariablechangesindependently.TheriskmanagementobjectiveoftheGroupistoachieveproperbalancebetweenrisksandbenefits,tominimizethenegativeinfluenceoftherisksonthebusinessperformanceoftheGroupandtomaximizetheshareholders’benefit.Basedonthisriskmanagementobjective,thebasicriskmanagementstrategyoftheGroupistodetermineandanalyzevariousrisksfacedbytheGroup,tosetupproperrisktolerancebottomlineandtocarryoutriskmanagement,andtosupervisevariousrisks

timelyandreliablytocontroltheriskswithinadefinedscope.

10.1Riskmanagementobjectiveandpolicy

10.1.1Marketrisk

①ForeignexchangeriskForeignexchangeriskreferstotheriskthatcauseslossduetoexchangeratefluctuation.TheforeignexchangeriskbornebytheGroupismainlyrelevanttoEURandUSD.ExceptthattheoverseassubsidiariesoftheGrouppurchaseandsellinEUR,ChileanpesoandAUD,whichborrowinUSD,anddomesticsubsidiariesdepositinEURandUSD,othermainbusinessactivitiesoftheGrouparepricedandsettledinRMB.AsatJune30,2019,exceptthattheassetsandliabilitiesmentionedinthetablebelowwerethebalanceofdepositsorloansshowninforeigncurrencies,otherassetsandliabilitiesoftheentitiesoftheGroupweresettledintheirrespectivefunctionalcurrencies.

Unit:Yuan

ItemEndingbalanceBeginningbalance
Monetarycapital(EUR)22,677199,753
Monetarycapital(USD)50,339,46851,283,910
Short-termloans(USD)75,621,70075,495,200

TheforeignexchangeriskcausedbytheassetsandliabilitiesofsuchforeigncurrencybalancemayexertaninfluenceonthebusinessperformanceoftheGroup.TheGrouppayscloseattentiontotheinfluenceofexchangeratefluctuationontheforeignexchangeriskoftheGroup.TheGrouphasnottakenanymeasurestoavoidtheforeignexchangeriskatpresent.Sensitivityanalysisofforeignexchangerisk

Withtheothervariablesunchanged,thepre-taxinfluenceofpossiblereasonableexchangeratefluctuationoncurrentprofitandlossandshareholders’equityisshownasfollows:

Domesticentities:

Unit:Yuan

ItemExchangeratefluctuationThisperiod
InfluenceonprofitinthisperiodInfluenceonshareholders’equity
EUR5%appreciationagainstRMB1,1341,134
EUR5%depreciationagainstRMB-1,134-1,134
USD5%appreciationagainstRMB2,339,2882,339,288
USD5%depreciationagainstRMB-2,339,288-2,339,288

Overseasentities:

Unit:Yuan

ItemExchangeratefluctuationThisperiod
InfluenceonprofitinthisperiodInfluenceonshareholders’equity
USD5%appreciationagainstEUR10,25010,250
USD5%depreciationagainstEUR-10,250-10,250
USD10%appreciationagainstCLP-115,086-115,086
USD10%depreciationagainstCLP115,086115,086

Note:AsatJune30,2019,themanagementoftheGrouppredictedthatEURandUSDexchangerateagainstRMB,andUSDexchangerateagainstEURchangedby5%;andUSDexchangerateagainstCLPchangedby15%.

②Interestraterisk–riskofchangeincashflowTheriskofchangeincashflowoffinancialinstrumentscausedbyinterestratechangeoftheGroupismainlyrelevanttothemonetarycapitalandbankloanatfloatinginterestrate.ThepolicyoftheGroupistomaintainthefloatinginterestrateoftheseloanstoeliminatetheriskofchangeinfairvalueoftheinterestrate.

SensitivityanalysisofinterestrateriskSensitivityanalysisofinterestrateriskisbasedonthehypothesisthatthechangeinmarketinterestrateinfluencestheinterestincomeorexpenseoffinancialinstrumentsatvariablerate.

ThemanagementoftheGroupthinksthattheinterestrateriskofdepositinbankbornebytheGroup

isnotsignificant,andthereforethesensitivityanalysisofinterestrateofdepositinbankisnotdisclosedhere.

Onthebasisoftheabove-mentionedhypothesis,withtheothervariablesunchanged,thepre-taxinfluenceofpossiblereasonableexchangeratefluctuationoncurrentprofitandlossandshareholders’equityisasfollows:

Unit:Yuan

ItemInterestratechangeThisperiod
InfluenceonprofitofthisperiodInfluenceonshareholders’equity
BankloanIncreaseby50BP-323,958-323,958
BankloanDecreaseby50BP323,958323,958

Note:AsatJune30,2019,themanagementoftheGrouppredictedthatthebankfloatingratechangedby50basispoints

10.1.2CreditriskAsatJune30,2019,thelargestcreditriskexposurepossiblycausingthefinanciallossoftheGroupwasmainlycausedbythelossgeneratedbythefinancialassetsoftheGroupduetofailureofanotherpartyofthecontractinfulfillingobligations.Tolowerthecreditrisk,theGrouponlytradeswiththerecognizedandreputablethirdparty.InaccordancewiththepolicyoftheGroup,creditcheckshallbecarriedoutforallcustomerswhotransactbymeansofcredit.Inaddition,theGroupconductscontinuousmonitoringonthebalanceofaccountsreceivabletoensurethattheGroupwillnotfacemajorriskofbaddebts.Fortransactionsnotsettledwithrecordingcurrencyofrelevantbusinessunits,unlessthecreditcontroldepartmentoftheGroupspeciallyapproves,theGroupwillnotprovidecredittradeterms.Inaddition,theGroupauditsthecollectionofeachsinglesignificantaccountreceivableoneachdateofbalancesheettoensurethatsufficientbad-debtprovisionisaccruedforaccountsunabletobecollected.Therefore,themanagementoftheGroupthinksthecreditriskbornebytheGroupisgreatlyreduced.

SincetheGrouponlytradeswiththerecognizedandreputablethirdparty,nocollateralisrequired.Thecreditriskismanagedcentrallyaccordingtothecustomer/counter-party,geographicareaandindustry.AsatJune30,2019,18.3%ofaccountsreceivableoftheGroupcamefromtopfiveborrowersinaccountsreceivableoftheGroup(December31,2018:

19.8%).TheGroupholdsnocollateralorothercreditenhancementforthebalanceofaccountsreceivable.

10.1.3LiquidityriskWhenmanagingtheliquidityrisk,theGroupreservesandmonitorsthecashandcashequivalentsthemanagementconsiderssufficienttosatisfytheoperationneedoftheGroupandreducetheinfluenceoffluctuationincashflow.ThemanagementoftheGroupmonitorstheuseofbankloansandensurestoabidebytheloanagreement.

11.Relatedpartiesandrelatedtransactions

11.1ParticularsoftheparentcompanyoftheCompany

NameofparentcompanyRegistrationplaceBusinessnatureRegisteredcapitalProportionofshareholdingoftheparentcompanyintheCompanyProportionofvotingpowersoftheparentcompanyintheCompany
ChangyuGroupCompanyYantaiCityManufacturingindustry50,000,00050.40%50.40%

FromJanuarytoJune2019,therewasnofluctuationintheregisteredcapitaloftheparentcompanyanditsshareinequityinterestandvotingright.

11.2ParticularsofthesubsidiariesoftheCompanySeeparticularsofthesubsidiariesoftheCompanyinNote9.

11.3Particularsofotherrelatedparties

NameofotherrelatedpartiesRelationshipbetweenotherrelatedpartiesandtheCompany
YantaiChangyuWineCultureMuseumCo.,Ltd.(“WineCultureMuseum”)Acompanycontrolledbythesameparentcompany
YantaiChangyuWindowofInternationalWineCityCo.Ltd.(“WindowofWineCity”)Acompanycontrolledbythesameparentcompany
YantaiGodHorsePackingCo.,Ltd.(“GodHorsePacking”)Acompanycontrolledbythesameparentcompany
YantaiZhongyaMedicalHealthWineCo.,Ltd.(“ZhongyaMedical”)Acompanycontrolledbythesameparentcompany
YantaiChangyuCulturalTourismProductSalesCo.,Ltd.(“CulturalSales”)Acompanycontrolledbythesameparentcompany
YantaiChangyuCulturalTourismDevelopmentCo.,Ltd.(“CulturalDevelopment”)Acompanycontrolledbythesameparentcompany

11.4Relatedtransactions

11.4.1RelatedtransactionsofpurchasingandsellinggoodsandprovidingandreceivingservicesListofpurchasinggoods/receivingservices

Unit:Yuan

RelatedpartiesRelatedtransactionsAmountincurredinthisperiodApprovedtransactionamountExceedingthetransactionamountornotAmountincurredinpriorperiod
GodHorsePackingPurchasinggoods74,970,84595,990,354
ZhongyaMedicalPurchasinggoods2,970,0076,037,893
WineCultureMuseumPurchasinggoods7,324,1999,475,159
WindowofWineCityPurchasinggoods6,853,1122,857,130
CulturalSalesPurchasinggoods65,907
CulturalDevelopmentPurchasinggoods40,458

Listofsellinggoods/providingservices

Unit:Yuan

RelatedpartiesRelatedtransactionsAmountincurredinthisperiodAmountincurredinpriorperiod
WineCultureMuseumSellinggoods3,377,01113,889,017
WindowofWineCitySellinggoods3,891,1018,773,612
ZhongyaMedicalSellinggoods2,559,8702,203,629
GodHorsePackingSellinggoods3,52015,742
CulturalSalesSellinggoods3,873,204
CulturalDevelopmentSellinggoods1,847,727220,759

ThepriceoftransactionsbetweentheGroupandtherelatedpartiesarebasedonthenegotiatedprice.

11.4.2Relatedtrusteeship/contractingandmandatoryadministration/outsourcing

Nil

11.4.3LeasingwithrelatedpartiesTheCompanyasalessor:

Unit:Yuan

NameofthelesseeTypeofleasedassetsRentalincomerecognizedinthisperiodRentalincomerecognizedinpriorperiod
GodHorsePackingOfficebuildingandplant742,883739,491
WindowofWineCityOfficebuilding488,595486,364
ZhongyaMedicalOfficebuilding260,279259,091

TheCompanyasalessee:

Unit:Yuan

NameofthelessorTypeofleasedassetsRentrecognizedinthisperiodRentrecognizedinpriorperiod
ChangyuGroupCompanyOfficebuildingandplant3,447,8913,432,147

11.4.4Relatedguarantee

Nil

11.4.5Inter-bankborrowingandlendingofrelatedpartiesNil

11.4.6AssettransferanddebtrecombinationofrelatedpartiesNil

11.4.7Otherrelatedtransactions

Unit:Yuan

ItemNoteAmountincurredinthisperiodAmountincurredinpriorperiod
Trademarkusefee(a)44,428,033
Patentfee(b)25,000

11.5Accountsreceivableandpayableoftherelatedparties

11.5.1Accountsreceivable

Unit:Yuan

ItemRelatedpartiesEndingbalanceBeginningbalance
BookbalanceProvisionforbaddebtsBookbalanceProvisionforbaddebts
AccountsreceivableZhongyaMedical4,384,6292,768,391
AccountsreceivableGodHorsePacking17,137
AccountsreceivableWindowofWineCity1,777,5251,911,157
OtherreceivablesGodHorsePacking1,626,880813,440
OtherreceivablesZhongyaMedical285,000
OtherreceivablesWindowofWineCity535,000

11.5.2Accountspayable

Unit:Yuan

ItemRelatedpartiesEndingbookbalanceBeginningbookbalance
AccountspayableGodHorsePacking36,227,35155,366,785
AccountspayableZhongyaMedical8,002,2306,722,667
AccountspayableWineCultureMuseum7,301,7654,646,731
AccountspayableWindowofWineCity1,139,4074,789,600
AccountspayableCulturalSales6,360
OtheraccountspayableChangyuGroupCompany3,775,36278,414,978
OtheraccountspayableGodHorsePacking450,000

12.Commitmentandcontingency

12.1Significantcommitment

Unit:Yuan

ItemEndingbalanceBeginningbalance
Makinglong-termassetcommitments469,980,000996,675,000

12.2ContingencyAsofthebalancesheetdate,theGroupdidn’thaveanycontingencytobedisclosed.

13.Mattersafterbalancesheet

13.1Importantnon-adjustingevents

Nil

13.2Profitdistribution

Unit:Yuan

Profitsordividendstobedistributed411,278,400
Allocatedprofitsordividendsapprovedtodeclareupondiscussion411,278,400

13.3OtherstatementofeventsafterthebalancesheetdateAccordingtothedecisionoftheShareholders’MeetingdatedMay17,2019,basedontheissuedcapitalstockof685,464,000sharesin2018,theCompanyallocatedRMB6Yuanincash(includingtax)forevery10sharestoallshareholderswiththetotalcashdividendsofRMB411,278,400Yuan.SuchcashdividendsweredistributedonJuly8,2019andJuly10,2019respectively.

14.Otherimportantmatters

Nil

15.Notesonmajoritemsinfinancialstatementsoftheparentcompany

15.1Accountsreceivable

15.1.1Accountsreceivabledisclosedbytype

Unit:Yuan

TypeEndingbalanceBeginningbalance
BookbalanceProvisionforbaddebtsBookvalueBookbalanceProvisionforbaddebtsBookvalue
AmountProportionAmountAccruedproportionAmountProportionAmountAccruedproportion
Accountsreceivableforwhichprovisionforbaddebtsisaccruedonasingleitembasis1,447,973100%1,447,973
Accountsreceivableforbaddebtsisaccruedonacombinedbasis
Total1,447,973100%1,447,973

15.1.2Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiodTheprovisionforbaddebtsaccruedinthisperiodwasRMB0Yuan;andthatwithdrawnortransferredbackinthisperiodwasRMB0Yuan.

15.1.3Accountsreceivableactuallycancelledafterverificationinthisperiod

Nil

15.1.4Accountsreceivablecollectedbytheborroweroftop5unitsrankedbytheendingbalanceNil

15.1.5AccountsreceivablederecognizedduetotransferoffinancialassetsNil

15.1.6Accountsreceivabletransferredandincludedinassetsandliabilities

Nil

15.2Otherreceivables

Unit:Yuan

ItemEndingbalanceBeginningbalance
Interestreceivable277,785254,088
Dividendsreceivable4,103,925500,000,000
Otherreceivables522,211,903525,389,268
Total526,593,6131,025,643,356

Remarks:Theotherreceivablesintheabovelistrefertothosedeductinginterestreceivableanddividendsreceivable.

15.2.1Interestreceivable

Unit:Yuan

ItemEndingbalanceBeginningbalance
Fixeddeposit277,785254,088
Entrustedloan
Bondinvestment
Total277,785254,088

15.2.2Dividendsreceivable

Unit:Yuan

Item(ortheinvestedunit)EndingbalanceBeginningbalance
Dividendsreceivablefromsubsidiaries4,103,925500,000,000
Total4,103,925500,000,000

15.2.3Otherreceivables

15.2.3.1Particularsofotherreceivablesclassifiedbynature

Unit:Yuan

NatureEndingbookbalanceBeginningbookbalance
NatureEndingbookbalanceBeginningbookbalance
Accountsreceivablefromsubsidiaries518,330,846523,579,831
Depositandguarantymoneyreceivable12,500
Other3,881,0571,796,937
Total522,211,903525,389,268

15.2.3.2Disclosedbyage

Unit:Yuan

AgeEndingbalance
Within1year(including)422,841,109
1-2years99,270,390
2-3years100,404
Morethan3years
Total522,211,903

15.2.3.3Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiodTheprovisionforbaddebtsaccruedinthisperiodwasRMB0Yuan;andthatwithdrawnortransferredbackinthisperiodwasRMB0Yuan.

15.2.3.4Accountsreceivableactuallycancelledafterverificationinthisperiod

Nil

15.2.3.5Otheraccountsreceivablecollectedbytheborroweroftop5unitsrankedbytheendingbalance

Unit:Yuan

UnitNatureoffundEndingbalanceAgePercentageinthetotalendingbalanceofotheraccountsreceivableEndingbalanceofprovisionforbaddebts
SalesCompanyInternalincomingsandoutgoings179,295,939Within1year34.3%
R&DCompanyInternalincomingsandoutgoings111,343,650Within1year21.3%
LaizhouWineInternalincomingsandoutgoings5,549,972Within1year1.1%
PenglaiSalesInternalincomingsandoutgoings3,992,770Within1year0.8%
UnitNatureoffundEndingbalanceAgePercentageinthetotalendingbalanceofotheraccountsreceivableEndingbalanceofprovisionforbaddebts
IndomitaWineCompanyChile,SpAInternalincomingsandoutgoings3,330,413Within1year0.6%
Total--303,512,744--58.1%

15.2.3.6Accountsreceivablerelatedtogovernmentalsubsidy

Nil

15.2.3.7Otheraccountsreceivablederecognizedduetotransferoffinancialassets

Nil

15.2.3.8Otheraccountsreceivabletransferredandincludedinassetsandliabilities

Nil

15.3Long-termequityinvestment

Unit:Yuan

ItemEndingbalanceBeginningbalance
BookbalanceImpairmentreserveBookvalueBookbalanceImpairmentreserveBookvalue
Investmentinsubsidiaries7,420,803,0697,420,803,0697,420,803,0697,420,803,069
Investmentinassociatedenterprisesandjointventures
Total7,420,803,0697,420,803,0697,420,803,0697,420,803,069

15.3.1Investmentinsubsidiaries

Unit:Yuan

InvestedunitBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalanceProvisionforimpairmentaccruedinthisperiodEndingbalanceofimpairmentprovision
XinjiangTianzhu(a)60,000,00060,000,000
KylinPackaging23,176,06323,176,063
ChangyuChateau(a)28,968,10028,968,100
PioneerInternational(b)3,500,0003,500,000
InvestedunitBeginningbalanceIncreaseinthisperiodDecreaseinthisperiodEndingbalanceProvisionforimpairmentaccruedinthisperiodEndingbalanceofimpairmentprovision
NingxiaGrowing36,573,24736,573,247
NationalWine2,000,0002,000,000
IcewineValley(a)30,440,50030,440,500
BeijingChateau(a)579,910,000579,910,000
SalesCompany7,200,0007,200,000
LangfangSales(b)100,000100,000
LangfangCastel(a)19,835,73019,835,730
WineSales4,500,0004,500,000
ShanghaiMarketing(b)300,000300,000
BeijingMarketing850,000850,000
JingyangSales(b)100,000100,000
JingyangWine(b)900,000900,000
NingxiaWine222,309,388222,309,388
NingxiaChateau453,463,500453,463,500
ChateauTinlot(b)212,039,586212,039,586
ShiheziChateau812,019,770812,019,770
Chang’anChateau803,892,258803,892,258
Research,Development&ManufactureCompany(a)3,288,906,4453,288,906,445
HuanrenWine22,200,00022,200,000
WineSalesCompany
FrancsChamps236,025,404236,025,404
MarquesdelAtrio190,150,544190,150,544
IndomitaWine274,248,114274,248,114
KilikanoonEstate,Australia107,194,420107,194,420
Total7,420,803,0697,420,803,069

(a)TheCompanyacquired100%votingrightandusufructofsuchnon-wholly-ownedsubsidiariesby

meansofcontractarrangement.PleaserefertoNote9.1.(b)TheCompanyacquired100%votingrightofsuchsubsidiariesbymeansofindirectholdingthrough

itswholly-ownedsubsidiaries.FromJanuarytoJune2019,therewerenorestrictionsfortheinvestedentitiesoftheCompanytotransferassetstotheCompany.

15.4Operatingincomeandoperatingcost

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
IncomeCostIncomeCost
Mainbusiness334,207,600292,023,685384,520,180330,810,994
Otherbusiness18,143,40217,546,89524,325,03121,835,995
Total352,351,002309,570,580408,845,211352,646,989

15.5Investmentincome

Unit:Yuan

ItemAmountincurredinthisperiodAmountincurredinpriorperiod
Incomefromlong-termequityinvestmentbycostmethod264,221,755312,409,576
Incomefromlong-termequityinvestmentbyequitymethod
Investmentincomefromdisposaloflong-termequityinvestment
Investmentincomeofthefinancialassetsmeasuredattheirfairvaluesandthevariationofwhichisrecordedintothecurrentprofitsandlossesduringtheholdingperiod
Investmentincomegainedfromdisposalofthefinancialassetsmeasuredattheirfairvaluesandthevariationofwhichisrecordedintothecurrentprofitsandlosses
Investmentincomeofheld-to-maturityinvestmentduringtheholdingperiod
Investmentincomeoffinancialassetsheldforsaleduringtheholdingperiod
Investmentincomegainedfromdisposaloffinancialassetsheldforsale
Gainsgeneratedfromtheremainingequityremeasuredasperfairvalueafterthelossofcontrol
Total264,221,755312,409,576

16.Supplementarymaterials

16.1Listofnon-currentprofits/lossesinthisperiod

Unit:Yuan

ItemAmountRemark
Profits/lossesondisposalofnon-currentassets1,138
Taxreturn,deductionandexemptionapprovedbeyondtheauthorityorwithoutformalapprovaldocument
Governmentalsubsidyincludedinthecurrentprofits/losses(excludingthosecloselyrelatedtotheenterprisebusinessandenjoyedinaccordancewiththeunifiedstandardquotaorrationofthestate)64,211,892
Paymentforuseoffundsbynon-financialenterprisesincludedinthecurrentprofits/losses
Incomeobtainedwhentheinvestmentcostobtainedbytheenterprisefromsubsidiaries,joint-runbusinessandjointventureislessthanthefairvalueofthenetidentifiableassetsobtainedfromtheinvestedunitswhentheinvestmentismade
Profits/lossesonexchangeofnon-monetaryassets
Profits/lossesonentrustingotherpeopletomakeinvestmentormanageassets
Assetimpairmentprovisionaccruedduetoforcemajeuresuchasnaturaldisaster
Profits/lossesondebtrestructuring
Enterprisereorganizationexpensessuchasstaffingexpenditureandintegrationexpenses,etc.
Profits/lossesonthosebeyondthefairvaluegeneratedfromtransactionswithunfairtransactionprice
Currentnetprofits/lossesonsubsidiariesacquiredfromabusinesscombinationundercommoncontrolfromthebeginningtotheconsolidationdate
Profits/lossesoncontingenciesirrelatedtothenormalbusinessoftheCompany
ItemAmountRemark
Profits/lossesonchangesoffairvalueoftradablefinancialassets,derivativefinancialassets,tradablefinancialliabilitiesandderivativefinancialliabilities,andinvestmentincomefromdisposaloftradablefinancialassets,derivativefinancialassets,tradablefinancialliabilities,derivativefinancialliabilitiesandotherinvestmentincreditor'srights,excludingeffectivehedgingoperationsrelevanttothenormalbusinessoftheCompany
Transfer-backofaccountsreceivablewithsingleimpairmenttestandprovisionforimpairmentofcontractassets
Profits/lossesonexternalentrustedloans
Profits/lossesonfairvaluechangesofinvestmentrealestatewithfairvaluemodeforfollow-upmeasurement
Influenceoftheone-timeadjustmentofthecurrentprofits/lossesinaccordancewithtaxandaccountinglawsandregulationsonthecurrentprofits/losses
Trusteefeeincomefromentrustedoperation
Othernon-operatingincomeandexpenditurebesidestheaboveitems3,411,864
Otherprofits/lossesconformingtothedefinitionofnon-currentprofits/losses
Minus:Influencedamountofincometax16,671,778
Influencedamountofminorityshareholders’equity40,022
Total50,913,094--

16.2Returnonnetassetsandearningspershare

ProfitincurredinthisperiodWeightedaveragereturnonnetassetsEarningspershare
BasicEPS(Yuan/Share)DilutedEPS(Yuan/Share)
NetprofitattributabletocommonshareholdersoftheCompany6.13%0.880.88
NetprofitattributabletocommonshareholdersoftheCompanydeductingnon-incidentalprofits/losses5.62%0.810.81

16.3Accountingdatadifferenceunderdomesticandforeignaccountingstandard

16.3.1Netprofits&netassetsdifferencedisclosedinthefinancialreportaccordingtotheinternationalaccountingstandardandChineseaccountingstandard

Unit:Yuan

NetprofitsNetassets
AmountincurredinthisperiodAmountincurredinpriorperiodEndingbalanceBeginningbalance
InaccordancewiththeChineseaccountingstandard603,403,789635,837,4059,791,885,0919,606,099,365
Item&amountadjustedinaccordancewiththeinternationalaccountingstandard:
Inaccordancewiththeinternationalaccountingstandard603,403,789635,837,4059,791,885,0919,606,099,365

XI.ReferenceDocuments

(1)Theoriginalof2019Semi-annualReportautographedbythechairman.

(2)TheFinancialStatementsautographedandsignedbythechairman,chiefaccountantandaccountantsincharge.

(3)TheProspectusandPublicOfferingAnnouncementforStockBin1997;TheProspectusandTheShares’Change&PublicOfferingAnnouncementofStockAforStockAin2000.

(4)TheoriginalsofalldocumentsandannouncementsthattheCompanymadepublicduringthereportperiodinthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommission.

YantaiChangyuPioneerWineCo.,Ltd.

BoardofDirectorsAugust28

th,2019


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