YantaiChangyuPioneerWineCo.,Ltd.
2021AnnualReport
Final2022-01
April2022
Contents
I、ImportantNotice,ContentsandDefinition ...... 3
II、BriefIntroductionfortheCompanyandMainFinancialIndicators ...... 6
III、ManagementDiscussionandAnalysis ...... 11
IV、CorporateGovernance ...... 33
V、EnvironmentalandSocialResponsibility ...... 56
VI、Majorissues ...... 59
VII、ChangesinSharesandShareholders’Situation ...... 70
VIII、RelatedSituationofPreferredShares ...... 79
IX、RelatedSituationofBonds ...... 79
X、FinancialReport ...... 79
I.ImportantNotice,ContentandDefinition
Theboardofdirectors，theboardofSupervisors，directors,supervisorsandseniorexecutivesoftheCompanyguaranteethetruthfulness,accuracyandcompletenessofthecontentscontainedinthereportwithnofalserecords,misleadingstatementsorsignificantomissions,andundertakeindividualandjointlegalliabilities.Mr.ZhouHongjiang(PersoninchargeoftheCompany),Mr.JiangJianxun(Personinchargeofaccountingwork)andMs.GuoCuimei(Personinchargeofaccountingorgan&Accountantincharge)assurethetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.Alldirectorshavepersonallyattendedthemeetingfordeliberatingtheannualreport.Exceptforthefollowingdirectors,otherdirectorsattendedthisboardmeetingforreviewingthisannualreportinperson
Nameofdirectornotattending
themeetingpersonally
| Nameofdirectornotattendingthemeetingpersonally | Positionofdirectornotattendingthemeetingpersonally | Reasonofnotattendingthemeetingpersonally | Nameofentrustee |
| AldinoMarzorati | Director | Duetotimeconflictofwork | ZhouHongjiang |
| StefanoBattioni | Director | Duetotimeconflictofwork | LengBin |
| EnricoSivieri | Director | Duetotimeconflictofwork | ZhouHongjiang |
Forward-lookingstatementssuchasfutureplansanddevelopmentstrategiescoveredinthisreportdonotconstituteasubstantialcommitmentoftheCompanytoinvestors.Investorsareadvisedtopayattentiontoinvestmentrisks.Aboutsignificantrisksthatmaybefacedinproductionandoperationprocess,pleasereferto“(5)PotentialRisks”of“11.ExpectationfortheCompany’sFutureDevelopment”inthe“III.ManagementDiscussionandAnalysis”ofthisreport.Investorsareadvisedtoreadcarefullyandpayattentiontoinvestmentrisks.TheCompany’spreliminaryschemeofprofitdistributiondeliberatedandpassedbytheboardofdirectorsthistimeisshownasfollowing:BasedontheCompany’stotal685,464,000shares,theCompanyplanstopayCNY4.5(includingtax)incashasdividendsforevery10sharestoallshareholdersandsend0bonusshare(includingtax);capitalreservewillnotbetransferredtoequity.
ReferenceDocuments
(1)TheoriginalofAnnualReportautographedbythechairman.
(2)TheFinancialStatementsautographedandsignedbythechairman,chiefaccountantandaccountantsincharge.
(3)TheProspectusandPublicOfferingAnnouncementforStockBin1997;TheProspectusandTheShares’Change&PublicOfferingAnnouncementforStockAin2000.
(4)TheoriginalsofalldocumentsandannouncementsthattheCompanymadepublicduringthereportperiodinthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommission.
Definition
DefinitionItem
| DefinitionItem | Refersto | DefinitionContent |
| Company/TheCompany | Refersto | YantaiChangyuPioneerWineCo.,Ltd. |
| ChangyuGroup/ControllingShareholder | Refersto | YantaiChangyuGroupCo.,Ltd. |
| CSRC | Refersto | ChinaSecuritiesRegulatoryCommission |
| SSE | Refersto | ShenzhenStockExchange |
| KPMGHuazhen | Refersto | KPMGHuazhenLLP(LimitedLiabilityPartnership) |
| CNY | Refersto | ChineseYuan |
II.BriefIntroductionfortheCompanyandMainFinancialIndicators
1.Company’sinformation
StockAbbreviation
| StockAbbreviation | ChangyuA,ChangyuB | StockCode | 000869,200869 |
| StockAbbreviationafterAlteration | - | ||
| PlaceofStockListing | ShenzhenStockExchange | ||
| LegalNameinChinese | 烟台张裕葡萄酿酒股份有限公司 | ||
| AbbreviationofChineseName | 张裕 | ||
| LegalNameinEnglish | YANTAICHANGYUPIONEERWINECOMPANYLIMITED | ||
| AbbreviationofEnglishName | CHANGYU | ||
| LegalRepresentative | ZhouHongjiang | ||
| RegisteredAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCodeofRegisteredAddress | 264000 | ||
| HistoricalChangeinRegisteredAddress | No | ||
| OfficeAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCodeofOfficeAddress | 264000 | ||
| Website | http://www.changyu.com.cn | ||
| webmaster@changyu.com.cn | |||
2.Contactpersonandinformation
| SecretarytotheBoardofDirectors | AuthorizedRepresentativeofSecuritiesAffairs | |
| Name | Mr.JiangJianxun | Mr.LiTingguo |
| Address | 56DamaRoad,Yantai,Shandong,China | 56DamaRoad,Yantai,Shandong,China |
| Tel. | 0086-535-6602761 | 0086-535-6633656 |
| Fax. | 0086-535-6633639 | 0086-535-6633639 |
| jiangjianxun@changyu.com.cn | stock@changyu.com.cn |
3.Informationdisclosureandfilinglocation
| Stockexchangewebsitefordisclosingannualreport | ShenzhenStockExchange(http://www.szse.cn) |
| Medianameandwebsitefordisclosingannualreport | ChinaSecuritiesNewspaper,SecuritiesTimes,HongKongCommercialDailyandCNINFOwebsite(http://www.cninfo.com.cn) |
| FilinglocationoftheCompany’sannualreport | BoardofDirectors’OfficeoftheCompany,56DamaRoad,Yantai,Shandong |
4.Registrationchanges
OrganizationCode
| OrganizationCode | 913700002671000358 |
| ChangesforthemainbusinessesoftheCompanysinceitwaslisted | ThebusinessscopedeterminedbytheCompanywhenitwasestablishedonSeptember18th,1997isproduction,processingandsalesofwine,distilledliquor,healthyliquor,fruitliquor,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachine.OnApril17th,2008,approvedbythe2007Shareholders’Meeting,theCompany’sbusinessscopewaschangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachines;licensedimportandexport.OnMay12th,2010,approvedbythe2009Shareholders’Meeting,theCompany’sbusinessscopewaschangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialanditsproductsandwinemakingmachinery;licensedimportandexport;externalinvestmentsubjecttonationalpolicy.OnSeptember23rd,2016,approvedbythe2016annual1stInterimShareholders’Meeting,theCompany’sbusinessscopewaschangedtoproductionofwineandfruitwine(bulkwine,processingandfilling);productionofblendingliquorandotherblendingliquors(grapeliqueur);productionofotherliquors(otherdistilledliquors);production,processingandsalesofpackingmaterialandwinemakingmachines;grapeplantationandprocurement;tourismresourcesdevelopment(excludingtourism);packagingdesign;activityofbuildingrental;licensedimportandexport;warehousebusiness;externalinvestmentsubjecttonationalpolicy. |
| Changesforallpreviouscontrollingshareholders | No |
5.OtherrelevantinformationTheaccountingfirmappointedbytheCompany
| Name | KPMGHuazhenLLP |
| Address | Level8,No.2EastWingofDongfangSquare,No.1EastChang’anStreet,DongchengDistrict,Beijing |
| Nameofsignatoryaccountants | Ms.WangTing,Ms.XuWeiran |
ThesponsorinstitutionappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Available?NotavailableThefinancialadviserappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Available?Notavailable
6.KeyaccountingdataandfinancialindicatorsWhethertheCompanyneedstoretrospectivelyadjustorrestatetheaccountingdataofpreviousfiscalyears.
□Yes?No
Thelowerofthenetprofitbeforeandafternon-recurringgainsandlossesinrecentthreefiscalyearsisnegativeandtheauditreportinrecentoneyearindicatesthereisuncertaintyintheCompany’ssustainableoperationability
□Yes?NoThelowerofthenetprofitbeforeandafternon-recurringgainsandlossesisnegative
□Yes?No
7.DifferencesinaccountingdataunderPRCaccountingstandardsandinternationalaccountingstandards
(1)DifferencesbetweennetprofitsandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandards
2021
| 2021 | 2020 | Increase/decreasecomparedwithlastyear(%) | 2019 | |
| Operatingrevenue(CNY) | 3,953,067,583 | 3,395,402,001 | 16.42% | 5,074,025,899 |
| Netprofitattributedtoshareholdersofthelistedcompany(CNY) | 500,102,606 | 470,860,587 | 6.21% | 1,141,367,296 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses(CNY) | 472,235,962 | 397,655,187 | 18.76% | 892,496,644 |
| Netcashflowsfromoperatingactivities(CNY) | 1,125,382,658 | 505,146,673 | 122.78% | 848,852,360 |
| Basicearningspershare(CNY) | 0.73 | 0.69 | 5.80% | 1.67 |
| Dilutedearningspershare(CNY) | 0.73 | 0.69 | 5.80% | 1.67 |
| Weightedaverageforearningrateofnetassets(CNY) | 4.84% | 4.57% | 0.27% | 11.40% |
| December31,2021 | December31,2020 | Increase/decreasecomparedwithlastyear-end(%) | December31,2019 | |
| Totalassets(CNY) | 13,472,009,754 | 13,102,481,541 | 2.82% | 13,647,932,568 |
| NetAssetsattributedtoshareholdersofthelistedcompany(CNY) | 10,447,884,183 | 10,267,832,644 | 1.75% | 10,308,910,198 |
□Available?NotavailableTherearenodifferencesbetweennetprofitsandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
(2)DifferencesbetweennetprofitsandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandards
□Available?NotavailableTherearenodifferencesbetweennetprofitsandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
8.Keyfinancialindicatorsbyquarter
Unit：CNY
st
Quarter
| 1stQuarter | 2ndQuarter | 3rdQuarter | 4thQuarter | |
| Operatingrevenue | 1,134,006,251 | 740,454,186 | 796,762,047 | 1,281,845,099 |
| Netprofitattributedtoshareholdersofthelistedcompany | 286,745,340 | 85,076,479 | 79,742,460 | 48,538,327 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses | 280,760,222 | 72,915,820 | 67,549,124 | 51,010,796 |
| Netcashflowsfromoperatingactivities | 314,895,523 | 141,039,626 | 336,257,978 | 333,189,531 |
Whethertherearesignificantdifferencesbetweentheabovementionedfinancialindicatorsortheirsumandtherelatedfinancialindicatorsinthequarterlyreportsandsemi-annualreportsdisclosedbytheCompany.
□Yes?No
9.Itemandamountofnon-recurringprofitandloss?Available□Notavailable
Unit：CNY
| Item | 2021 | 2020 | 2019 | Explanation |
| Profitsandlossesondisposalofnon-currentassets,includingtheprovisionforassetimpairmentwrite-offpart | -15,364,993 | -1,165,162 | 6,272,676 | |
| Governmentgrantsincludedinthecurrentprofitsandlosses(exceptforthoserecurringgovernmentgrantsthatarecloselyrelatedtotheentity’soperation,inlinewithrelatedregulationsandhaveproperbasisofcalculation) | 48,240,741 | 73,180,848 | 84,837,581 | |
| Thesubsidiary’snetprofitandlossforthecurrentperiodfromthebeginningoftheperiodtothecombiningdateresultingfromthecombinationofenterprisesunderthesamecontrol | 12,715,544 | 16,514,012 |
Othernon-operatingrevenuesandexpendituresinadditiontotheaforementioneditems
| Othernon-operatingrevenuesandexpendituresinadditiontotheaforementioneditems | 2,328,169 | 10,098,551 | 7,298,479 | |
| Otherprofitandlossprojectsconformingtothedefinitionofnon-recurringprofitandloss | 0 | 0 | 218,649,636 | |
| Less：Incometaxeffect | 7,306,787 | 21,595,671 | 84,171,927 | |
| Minorityshareholders'equityeffect(aftertaxes) | 30,486 | 28,710 | 529,805 | |
| Total | 27,866,644 | 73,205,400 | 248,870,652 | -- |
Specificsituationofotherprofitandlossprojectsconformingtothedefinitionofnon-recurringprofitandloss
□Available?NotavailableTheredoesnotexistspecificsituationofotherprofitandlossprojectsconformingtothedefinitionofnon-recurringprofitandloss.Explanationforregardingthenon-recurringprofitandlossspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLossasrecurrentprofitandloss
□Available?NotavailableThereisnosituationregardingthenon-recurringprofitandlossspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLossasrecurrentprofitandloss.
III.ManagementDiscussionandAnalysis
1.SituationofindustryinwhichtheCompanyoperatesduringthereportperiodIn2021,astrongwineconsumptionatmospherehadnotyetbeenformedinChina.Thewinemarketwasstillmainlydistributedinsomedevelopedcoastalareas.Mostconsumersdidnotdevelopthehabitofdrinkingwinefrequently.Wineconsumptionwashighlyvulnerabletotheimpactoftheepidemicandspirits.Theoverallscaleofdomesticwinemarketcontinuedtodecline,thesalesvolumeofimportedwineanddomesticwinecontinuedthetrendof“doubledecline”,andthevastmajorityofwineproductionandoperationenterpriseshaddifficultiesinoperation.Thedomesticwineindustrywasstillonthevergeofloss.Facingthesedisadvantages,theCompanypersistedintakingthemarketasthecenter,adheredtothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonbigproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,tookmarket-orientedactiontoadjustmarketingstrategiesinatimelymanner,promotedreformandinnovationtostimulateenterprisevitality,andtookconsumersatisfactionastheultimategoaltocontinuouslyimproveproductquality.In2021,theCompanyrealizedtheoperatingrevenueofCNY3,953.06millionwithayear-on-yearincreaseof16.42%andthenetprofitattributabletotheparentcompany’sshareholdersofCNY500.1millionwithayear-on-yearincreaseof6.21%,maintainingtheleadingroleintheindustry.
2.MainbusinessesduringthereportperiodTheCompanyneedtocomplywiththedisclosurerequirementsofFoodandLiquorManufacturingRelatedBusinessesinShenzhenStockExchangeIndustryInformationDisclosureGuidelineNo.3-IndustryInformationDisclosure.
(1)SituationoftheindustryinwhichtheCompanyoperatesDuringthereportperiod,theCompany’smainbusinessesareproductionandoperationofwineandbrandy,thusprovidingdomesticandforeignconsumerswithhealthyandfashionablealcoholicdrinks.Comparedwithearlierstage,therearenosignificantchangeshappenedtotheCompany’smainbusinesses.ThewineindustrythattheCompanyinvolvedinisstillingrowthstage.Althoughbeingaffectedbymanyfactorsincludingtheepidemicfortheshort-term,thecompetitioninthemarketisfierce,thewineconsumptiontemporarilydeclines,andalargenumberofwineproductionenterprisesareonthebrinkofloss.However,seenfromthelongterm,withthechangeintheconsumptionconceptionofyoungerconsumers,thewholedomesticwinemarketislikelytobeontherisingtrend.TheCompanyisattheforefrontinthedomesticwinemarketandissignificantlyaheadofmajordomesticcompetitors.
TheCompany’sproductsweredividedintotwoseries:wineandbrandy.Forwine,mainbrandsincludedChangyu,NobleDragon,AFIP,Longyu,GoldenIceValley,Zenithwirl,Vermouth,Rena,BaronBalboa,J.LORMIN,Atrio,KilikanoonandIWCCandsoon.ForBrandy,mainbrandsincludedKoya,Mminni,Pagese,RoulletFransacandsoon.
(2)LicenseobtainedAsofDecember31
st,2021,theCompanyanditssubsidiarieshaveobtained8foodproductionlicenses(alcohol),ofwhichthefoodproductionlicenseshavingbeenobtainedsincethebeginningof2020areasfollows:
Producername
| Producername | Foodcategory | Obtainingtime | Obtainingmethod | Foodproductionlicensenumber |
| ShaanxiChateauChangyuRenaCo.,Ltd. | Alcohol | 2020.10.19 | Approvalfromgovernmentauthority | SC11561040400532 |
| YantaiChateauKoyaBrandyCo.,Ltd. | Alcohol | 2021.01.11 | Approvalfromgovernmentauthority | SC11537063601165 |
(3)ExplanationforothermajoreventsDuringthereportperiod,theredidnotexistthetrademarkownershipdispute,foodqualityissueorfoodsafetyincidentetc.thathadasignificantimpactontheCompany.MajorsalesmodeTheCompany’smainsalesmodewasthedistributionmode,andmainsaleschannelwasofflinesales,thatis,theCompany’sproductsweredistributedtosalesterminalsthroughapproximately4,000distributorsathomeandabroadandultimatelyprovidedtoconsumers.Distributionmode?Available□Notavailable
(1)Situationofchangeinthenumberofdistributors
| Region | Numberatthebeginningof2021 | Increasednumberduringthisreportperiod | Numberattheendof2021 |
| EasternChina | 1702 | 155 | 1857 |
| SouthChina | 541 | 24 | 565 |
| CentralChina | 479 | -3 | 476 |
NorthChina
| NorthChina | 358 | 7 | 365 |
| NorthwestChina | 156 | 28 | 184 |
| SouthwestChina | 411 | 82 | 493 |
| NortheastChina | 289 | 29 | 318 |
| HongKong,Macao,TaiwanChinaandoverseas | 511 | 62 | 573 |
| Total | 4447 | 384 | 4831 |
(2)TheCompanyadoptedthesettlementmethodofcashandcarrywiththedistributors,andmainlyadoptedbuyoutdistributionmode.Theratioofsalesinself-ownedexclusiveshopexceeds10%
□Available?NotavailableSalesofonlinedirectselling?Available□Notavailable
Thechangeinsalespricesofmajorproductsaccountingformorethan10%oftotaloperatingincomeincurrentreportperiodexceeds30%comparedwiththoseinlastreportperiod
□Available?NotavailableProcurementmodeandprocurementcontent
Unit：CNY’0000
| Procurementmode | Procurementcontent | Theamountofthemainprocurementcontent |
| Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Rawmaterialssuchasgrapes/bulkwine | 49,125.70 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Packagingmaterials | 53,324.70 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Brewingmaterials | 2,262.50 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Vineyardsupplies | 1,082.80 |
| Contract | Fuelandpower | 2,945.50 |
Salesmodel
| Salesmodel | 2021 | 2020 | ||||
| Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | |
| Distribution | 3,263,303,800 | 1,349,422,481 | 58.65% | 2,945,453,550 | 1,289,537,264 | 56.22% |
| Directsales | 689,763,784 | 298,367,393 | 56.74% | 449,948,451 | 214,340,143 | 52.36% |
| Total | 3,953,067,583 | 1,647,789,874 | 58.32% | 3,395,402,001 | 1,503,877,407 | 55.71% |
Pricedeterminedbyqualitycomparisonwithstandardpriceitems
| Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Otherwinesandderivatives | 1,651.80 |
Amountofpurchasingrawmaterialsfromcooperativesorfarmersexceeds30%oftotalprocedureamount
□Available?NotavailableTheyear-on-yearchangeinthepriceofmajoroutsourcedrawmaterialsexceeds30%
□Available?NotavailableMajorproductionmodeTheproductionmodeoftheCompanyisself-produce.Manufacturingconsignment
□Available?NotavailableMajorcomponentsofoperatingcostsPleasereferto‘4.Analysisinmainbusiness’inthischapter.YieldandinventoryPleasereferto‘4.Analysisinmainbusiness’inthischapter.
3.AnalysisofcorecompetitivenessComparedwiththeparticipantsinthearenaoftheChinesewinesector,theCompanyownsfollowingadvantages:
Firstly,theCompanyhasalargebrandinfluence.Mainbrandsusedhavealonghistory.“Changyu”,“NobleDragon”and“AFIP”areall“Chinafamousbrands”thathavestronginfluenceandgoodreputation.Secondly,theCompanyhassetupanationwidemarketingnetwork.TheCompanyhasformeda“three-level”marketingnetworksystemmainlycomposedoftheCompany’ssalesmenanddistributorsandtheonlinesalesplatformhashadacertainscaleandinfluence,owingstrongmarketingabilityandmarketexploitationability.Thirdly,theCompanyhasstrongscientificprowessandaproductR&Dsystem.Relyingonthecountry’s“State-levelWineR&DCenter”,theCompanyhasownedpowerfulwinemakerteam,masteredadvancedwinemakingtechnologyandproductionprocessesandhadstrongproductinnovationcapacityandperfectqualitycontrolsystem.Fourthly,theCompanyisinpossessionofalotofgrape-growingbasesthatarecompatiblewithitsdevelopmentrequirements.TheCompanyhasdevelopedagreatdealofvineyardsinthemostsuitableareasforwinegrapegrowingsuchasShandong,Ningxia,Xinjiang,Liaoning,Hebeiand
Shaanxi,anditssubsidiaryoverseasenterprisesalsoownmatchinggrapebasesinlocalarea,makingtheoverallscaleandstructuregenerallymeettheCompany’sneedsforfuturedevelopment.Fifthly,productsinhigh,mediumandlow-gradeaswellasvarietiesandcategoriesareallcomplete.Over100varietiesofseriesproductssuchaswine,brandyandsparklingwinecoversvariousgrades,includinghigh,mediumandlow-grade,whichcanmeetdifferentconsumergroups’demands.TheCompanyhastakenthedominantstatusinthedomesticwineindustryaftermanyyears’developmentandhascomparativeadvantagesinthefuturecompetition.Sixthly,theCompanyhasarelativelyperfectmotivationsystem.MostofCompany’semployeesindirectlyholdtheCompany’sequitythroughcontrollingshareholders.Therearehighconsistencybetweenemployeebenefitsandshareholdersbenefits,infavorofmotivatingemployeestocreatevalueforshareholders.Seventhly,theCompanyhassetupflexibleandefficientdecision-makingmechanism.TheCompany’scoremanagementteamalwaysmaintainsaworkingstyleofunityandpragmaticandflexibleandefficientdecision-makingmechanism,whichmakestheCompanycandealwithmarketchangesmorecalmly.Eighthly,theglobalproductioncapacitylayouthasbeenbasicallycompleted.TheCompanyhascompletedproductioncapacitylayoutinChina,France,Chile,Spain,Australiaandothermajorwineproducingcountriesintheworld,enablingmakingbetteruseofglobalhigh-qualityrawmaterialresources,capital,talentsandadvancedproductionprocessesandtechnologiestoprovideconsumerswithdiversifiedqualityproductsandbetterserveconsumers.Basedontheabovereasons,theCompanyhasformedrelativelystrongcorecompetenceandwillmaintainarelativelydominantpositioninthefuturepredictablemarketcompetition.
4.Analysisinmainbusiness
(1)Summarization
Description
| Description | Increaseordecreaseattheendoftheperiodovertheendoflastyear | Causeofsignificantchanges |
| Operatingrevenue | 16.42% | Mainlybecauseofincreaseinsalesvolume |
| Operatingcost | 9.57% | Mainlybecauseofincreaseinsalesvolume |
| Salesexpense | 26.73% | Mainlybecauseofincreasedadvertisingfeeandmarketingexpenseresultingfromincreasedmarketinvestment |
| Managementexpense | 2.90% | Mainlybecauseofincreaseindepreciationfeeandadministrativeexpense |
| R&Dexpense | 140.97% | Mainlybecauseofincreaseinresearchinput,purchasingandupdatingscientificequipment |
Financialexpense
| Financialexpense | 3.61% | MainlybecauseofincreaseinexchangelossoftheCompany’ssubsidiaryoverseasenterprises |
| Netamountofcashflowgeneratedinoperatingactivities | 122.78% | Mainlybecauseofincreaseinreceivedsalespaymentresultingfromincreasedsalesvolume |
| Netamountofcashflowgeneratedininvestmentactivities | -23.38% | Mainlybecauseofdecreaseincashreceivedfrominvestmentrecoveryandcashrecoveredfromdisposaloffixedassets,intangibleassetsandotherlong-termassets |
| Netamountofcashflowgeneratedinfinancingactivities | 29.22% | Mainlybecauseofdecreaseincashpaidfordistributionofdividends,profitsorrepaymentofinterestandothercashpaidinconnectionwithfinancingactivities |
ReviewandsummaryoftheprocessoftheCompany’searly-discloseddevelopmentstrategyandbusinessplanduringthereportperiodDuringthereportperiod,thedomesticwineindustrycontinuedthedeclinetrendandthemarketcompetitionwasveryintense.TheCompanyrealizedtheoperatingrevenueofCNY3,953.06millionwithanincreaseof16.42%comparedwithlastyear,exceedingthetargetfixedatthebeginningoftheyearofrealizingoperatingrevenuenolessthanCNY3.8billion,andrealizedthenetprofitattributabletotheparentcompany’sshareholdersofCNY500.1millionwithanincreaseof6.21%comparedwithlastyear.Themainworksduringthereportperiodwereshownasfollowed:
Firstly,theCompanyadheredtothemarket-orientedstrategyandtimelyadjustedmarketingstrategies.Forwine,onthebasisoftheThree-Focusstrategy,theCompanyfurtherfocusedonbrands,products,cities,methodsandbarcode;activelyadjustedtheorganizationalstructure,realizinggoodperformanceintheannihilationwarandshowingagoodmomentuminsomemarkets;strengthenedthemanagementandcontrolofmarketingexpensesandfurtherfocusedthemarketinvestmentinconsumercultivation;constantlyinnovatedthecontentsandmethodsofbrandcommunication,expandingthebrandinfluence.Forbrandy,theCompanyfurtherimprovedthesalessystem,realizinghigh-lowseparationintraditionalmaturemarketssuchasGuangdongandYantaiandmakingtheindependentsystemcoverthenationalmarket;continuedtocarryoutmarketingactivities,suchastastingactivities,chateauexperience,exchangeofemptybottlesforbrandyandKoyaXOculturalexperiencehallandsoon;steadilyimprovedthequantityandqualityofnewdistributors,suchasgroup-buying,consumerandcross-borderdistributors.Forimportedwine,theCompanycontinuedtooptimizethestructureofimportedproductsandfocusedonthecoreproductsoftheCompany'soverseasacquiredbrands.Besides,theCompanyacceleratedthepaceofdigitaltransformationandupgrading,achievingsustainedandrapidgrowthintheonlinebusinessandmakingitssalesrankfirstinthewineindustry'sentirenetworksales.Secondly,theCompanypromotedreformandinnovationandstimulatedthevitalityofenterprises.Inviewoftheirreplaceableroleofhigh-endproductsinenhancingbrandinfluenceandpromotingthelong-termdevelopmentofthecompany,theCompanyestablishedtheLongyubusinessdivisioninorderforthehigh-endwinestostrivetobreakthroughthemarketdilemmaandbegintoreverse,
thusleadingtheChinesewinemarkettograduallyrecoverinanall-roundway.Theintegrationofvarioustourismunitswascompleted,andtheorganizationandpersonnelwasfurtherstreamlined,greatlyimprovingtheoperatingefficiency.TheCompanysolidlypromotedtechnologicalinnovationandwasauthorized3nationalinventionpatentsofwineand2nationalinventionpatentsofbrandy.Italsocooperatedwithonlinebigenterprises,suchasGuoqu,YixinKechuangandJiuaizhihe,usedplatformsincludingJD.com,TmallandTiktoktoincreaseproductandbrandpromotionefforts,andcontinuouslyexpandedthescaleoffans,furtherenhancingbrandcommunicationpower,guidanceandinfluenceandpromotingproductsales.Intheplantingprocess,theCompanyintroducedtheinternationally-leadingNETAFIM"integrationofwaterandfertilizer"dripirrigationsystemtoachieveprecisewaterandfertilizersupplytograpes,greatlyreducingtheuseoflabor,waterandfertilizeruse;organicfertilizerandbiologicalpestcontroltechnologywaspromotedtocontinuouslyimprovetheyieldoforganicgrapes.Intheproductionprocess,theCompanyintroducedascientificandreasonablethermalenergyrecoverysystemtorecycleandutilizeequipmentwasteheat;useelectricityatdifferenttimesandpeaksandusetheheightdifferenceofproductionfacilitiestofacilitatematerialtransportationthatfurtherreducesproductioncosts,andtheenergyconsumptionindexpertonofwinehasreachedthenationalgreenfactorystandard.Inthelogisticslink,thelogisticsmodeofusingthree-layercartonsandpalletpackagingfornationalcirculationhasbeenpromoted,andtheamountofpaperusedandpackagingcostshavebeengreatlyreduced.Thirdly,theCompanystrengthenedfinancialandsafetymanagement,strengthenedauditsupervisionandpreventedoperationalrisks.TheCompanyhascoordinatedthechannelofexpenselisting,strengthenedfixedcapitalmanagementandfinancialmanagementofjointventurecompanies,reducedcapitaloccupation,savedlaborcostsandreducedfinancialrisks.Establishandimprovetheoccupationalsafetyandhealthsystem,carryoutoccupationalsafetyandhealtheducationforemployees,takemultiplemeasurestomobilizeemployeestobevaccinatedintime,strengthenemployees’awarenessofenvironmentalprotection,safetyandoccupationalhealth,improveemployees’safetyproductionskills,self-protectionabilityandgroupprotectionawareness,activelycarryouttherectificationofhiddendangersinsafetyproduction,continuouslyimprovethelevelofsafetyproductionmanagementtopreventsafetyloopholesandsuccessfullyachieve“zeroinfectionandzeroaccident”.Byconductioninternalunitprofitauthenticityaudits,flightaudits,resignauditofmiddleandsenior-levelemployeesandtechnicalrenovationprojectauditstopreventmajorviolationsoflawsandisciplines.Fourthly,theCompanyfurtherimprovedthesalarysystem,strengthenedtalentteamconstructionandimprovedthecombateffectivenessofthemanagementteam.Throughprocessdecompositionandsegmentedaccounting,theCompanyimprovedtheperformanceassessmentandevaluationsystemoftheproductionsystemandimprovedtheproductionefficiency.Furtherrefinetheevaluationandrewardandpunishmentstandardsofbrandwinemakerthatmakestheresponsibilities,rightsandbenefitsofbrandwinemakersmoreclearandlaysatalentfoundationforcontinuousimprovementofproductquality.Continuetocarryoutemployeetrainingandfurtherattractsocialoutstandingtalenttoinjectfreshbloodintotheenterpriseandenhancethedevelopmentmomentumoftheenterprise.
Fifthly,theCompanycarefullyorganizedandsuccessfullycompletedthepurchaseofrawmaterialssuchasgrapes.Throughscientificorganizationandplaning,theCompanyovercametheobstaclescausedbytheepidemic,badweatherandotherfactorsandcompletedthepurchaseofgrapesandotherrawmaterialswithhighqualityandquantitythatprovidesreliablerawmaterialguaranteeforfutureproductionandoperation.
(2)Revenueandcost
①Compositionofoperatingrevenue
Unit:CNY
2021
| 2021 | 2020 | Year-on-yearincreaseordecrease(%) | |||
| Amount | Proportioninoperatingrevenue | Amount | Proportioninoperatingrevenue | ||
| Totaloperatingrevenue | 3,953,067,583 | 100% | 3,395,402,001 | 100% | 16.42% |
| Sector-classified | |||||
| Sectorofliquorandalcoholicbeverage | 3,953,067,583 | 100% | 3,395,402,001 | 100% | 16.42% |
| Product-classified | |||||
| Wine | 2,834,114,276 | 71.69% | 2,424,359,348 | 71.40% | 16.90% |
| Brandy | 1,036,164,837 | 26.22% | 877,428,035 | 25.84% | 18.09% |
| Tourism | 73,192,187 | 1.85% | 69,589,233 | 2.05% | 5.18% |
| Others | 9,596,283 | 0.24% | 24,025,385 | 0.71% | -60.06% |
| Area-classified | |||||
| Domestic | 3,421,775,481 | 86.56% | 2,889,121,152 | 85.09% | 18.44% |
| Overseas | 531,292,102 | 13.44% | 506,280,849 | 14.91% | 4.94% |
| Salesmodel-classified | |||||
| Distribution | 3,263,303,800 | 82.55% | 2,945,453,550 | 86.75% | 10.79% |
| Directsales | 689,763,784 | 17.45% | 449,948,451 | 13.25% | 53.30% |
②Thecasesofindustry,productorareaaccountingforover10%intheCompany’soperatingrevenueoroperatingprofit?Available□Notavailable
Unit:CNY
| Operatingrevenue | Operatingcost | Grossmargin | Year-on-yearincreaseordecrease(%)ofoperatingrevenue | Year-on-yearincreaseordecrease(%)ofoperatingcost | Year-on-yearincreaseordecrease(%)ofgrossprofitrate | |
| Sector-classified | ||||||
| Sectorofliquorandalcoholicbeverage | 3,953,067,583 | 1,647,789,874 | 58.32% | 16.42% | 9.57% | 2.61% |
| Product-classified | ||||||
Wine
| Wine | 2,834,114,276 | 1,185,871,086 | 58.16% | 16.90% | 7.64% | 3.60% |
| Brandy | 1,036,164,837 | 415,041,606 | 59.94% | 18.09% | 13.59% | 1.58% |
| Tourism | 73,192,187 | 42,835,101 | 41.48% | 5.18% | 78.82% | -24.10% |
| Others | 9,596,283 | 4,042,081 | 57.88% | -60.06% | -68.36% | 11.06% |
| Area-classified | ||||||
| Domestic | 3,421,775,481 | 1,308,515,057 | 61.76% | 18.44% | 6.99% | 4.09% |
| Overseas | 531,292,102 | 339,274,817 | 36.14% | 4.94% | 20.80% | -8.39% |
| Salesmodel-classified | ||||||
| Distribution | 3,263,303,800 | 1,349,422,481 | 58.65% | 10.79% | 4.64% | 2.43% |
| Directsales | 689,763,784 | 298,367,393 | 56.74% | 53.30% | 39.20% | 4.38% |
UndertheconditionthatthestatisticalcaliberoftheCompany’smainbusinessdataisadjustedduringthereportperiod,theCompany’smainbusinessdataadjustedonthebasisofcaliberattheendofreportperiodinrecentoneyear.
□Available?Notavailable
③WhethertheCompany’ssalesrevenueformaterialobjectismorethanlaborservicerevenue?Yes□No
| Sector | Project | Unit | 2021 | 2020 | Year-on-yearincreaseordecrease(%) |
| Alcoholandalcoholicbeverageindustry | Salesvolume | Ton | 97,499 | 98,414 | -0.93% |
| Yield | Ton | 100,737 | 93,990 | 7.18% | |
| Inventory | Ton | 30,412 | 28,522 | 6.63% | |
| Wine | Salesvolume | Ton | 67,700 | 70,662 | -4.19% |
| Yield | Ton | 67,342 | 67,477 | -0.20% | |
| Inventory | Ton | 16,104 | 15,898 | 1.30% | |
| Brandy | Salesvolume | Ton | 29,799 | 27,752 | 7.38% |
| Yield | Ton | 33,394 | 26,513 | 25.95% | |
| Inventory | Ton | 14,308 | 12,624 | 13.34% |
Explanationonthecausesofover30%year-on-yearchangesoftherelatedcomparisondata
□Available?Notavailable
④ThefulfillmentofmajorsalescontractsignedbytheCompanyuptothereportperiod?Available?Notavailable
⑤CompositionofoperatingcostsClassificationofsectorandproduct
Unit:CNY
Sector
| Sector | Project | 2021 | 2020 | Year-on-yearincreaseordecrease(%) | ||
| Amount | Proportionintheoperatingcost(%) | Amount | Proportionintheoperatingcost(%) | |||
| Liquorandalcoholicbeverage | Blendingliquor | 833,479,062 | 51.93% | 731,348,214 | 49.42% | 13.96% |
| Packingmaterial | 477,555,065 | 29.76% | 457,572,889 | 30.92% | 4.37% | |
| Wages | 59,063,486 | 3.68% | 56,969,384 | 3.85% | 3.68% | |
| Manufacturingexpenses | 234,857,160 | 14.63% | 234,032,840 | 15.81% | 0.35% | |
| Wine | Blendingliquor | 611,321,504 | 51.55% | 540,591,702 | 49.07% | 13.08% |
| Packingmaterial | 328,926,668 | 27.74% | 326,909,741 | 29.67% | 0.62% | |
| Wages | 50,206,319 | 4.23% | 48,585,743 | 4.41% | 3.34% | |
| Manufacturingexpenses | 195,416,595 | 16.48% | 185,657,867 | 16.85% | 5.26% | |
| Brandy | Blendingliquor | 220,058,439 | 53.02% | 190,756,512 | 52.20% | 15.36% |
| Packingmaterial | 147,425,674 | 35.52% | 130,663,148 | 35.76% | 12.83% | |
| Wages | 8,708,416 | 2.10% | 8,383,641 | 2.29% | 3.87% | |
| Manufacturingcost | 38,849,077 | 9.36% | 35,597,765 | 9.75% | 9.13% | |
ExplanationNo
⑥Whethertherearechangesofconsolidationscopeduringthereportperiod?Yes□NoDuringthereportperiod,YantaiFushanChangyuTradingCo.,Ltd.wasnotincludedinthescopeofconsolidationbecauseitwascancelled;thenewly-establishedShanghaiChangyuGuoquDigitalTechnologyCo.,Ltd.,TianjinChangyuYixinDigitalTechnologyCo.,Ltd.andShanghaiChangyuYixinDigitalTechnologyCo.,Ltd.wereincludedinthescopeofconsolidation.Forotherchanges,pleasereferto‘1.Equityinsubsidiaries’inNote‘VIEquityinotherentities’tothefinancialstatements.
⑦MajorchangesoradjustmentsoftheCompany’sbusinesses,productsorserviceduringthereportperiod
□Available?Notavailable
⑧InformationofmajorsalescustomersandmajorsuppliersTheCompany’smajorsalescustomers
Thetotalsalesamountofthetopfivecustomers（CNY）
| Thetotalsalesamountofthetopfivecustomers（CNY） | 283,472,286 |
| Theproportionthattotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 7.17% |
| Theproportionthatsalesamountoftherelatedpartyinthetotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 0% |
InformationoftheCompany’s5biggestsalescustomers
| No. | Customername | Salesamount（CNY） | Proportionintotalsalesfortheyear（%） |
| 1 | Rank1st | 140,814,494 | 3.56% |
| 2 | Rank2nd | 59,764,528 | 1.51% |
| 3 | Rank3rd | 33,447,664 | 0.85% |
| 4 | Rank4th | 26,225,001 | 0.66% |
| 5 | Rank5th | 23,220,599 | 0.59% |
| Total | -- | 283,472,286 | 7.17% |
Othersituationexplanationsofmajorcustomers
□Available?NotavailableInformationontheCompany’smainsuppliers
| Thetotalpurchaseamountofthetop5suppliers | 136,914,471 |
| Theproportionofthetotalpurchaseamountofthetop5suppliersintheannualpurchaseamount | 24.08% |
| Theproportionoftherelatedpartypurchaseamountinthetop5supplierpurchaseamountinannualpurchaseamount | 3.58% |
InformationontheCompany’stop5biggestsuppliers
| No. | Suppliername | Purchaseamount(CNY) | Proportionintotalpurchasefortheyear（%） |
| 1 | Rank1st | 44,870,025 | 7.89% |
| 2 | Rank2nd | 27,057,504 | 4.76% |
| 3 | Rank3rd | 23,934,593 | 4.21% |
| 4 | Rank4th | 20,715,005 | 3.64% |
| 5 | Rank5th | 20,337,344 | 3.58% |
| Total | -- | 136,914,471 | 24.08% |
Othersituationexplanationsofmainsuppliers
□Available?Notavailable
(3)Expense
Unit:CNY
2021
| 2021 | 2020 | Year-on-yearincreaseordecrease(%) | Explanationofsignificantchanges | |
| Salesexpense | 998,954,105 | 788,252,485 | 26.73% | Mainlybecauseofincreasedadvertisingfeeandmarketingexpenseresultingfromincreasedmarketinvestment |
| Managementexpense | 299,076,376 | 290,646,466 | 2.90% | Mainlybecauseofincreaseindepreciationfeeandadministrativeexpense |
| Financialexpense | 21,178,727 | 20,441,713 | 3.61% | MainlybecauseofincreaseinexchangelossoftheCompany’ssubsidiaryoverseasenterprises |
| ResearchandDevelopmentexpense | 10,919,262 | 4,531,418 | 140.97% | Mainlybecauseofincreaseinresearchinput,purchasingandupdatingscientificequipment |
(4)Researchanddevelopmentinvestment?Available?Notavailable
| 2021 | 2020 | Percentageofchanges(%) | |
| NumberofR&Dpersonnel(person) | 137 | 135 | 1.48% |
| TheproportionofthenumberofR&Dpersonnel | 5.96% | 5.27% | 0.69% |
| EducationalstructureofR&Dpersonnel | —— | —— | —— |
| BelowBachelor | 65 | 68 | -4.41% |
| Bachelor | 48 | 46 | 4.35% |
| Postgraduate | 23 | 20 | 15.00% |
| Doctor | 1 | 1 | 0.00% |
| AgestructureofR&Dpersonnel | —— | —— | —— |
| Under30-year-old | 33 | 32 | 3.13% |
| 30-to40-year-old | 41 | 40 | 2.50% |
| Above40-year-old | 63 | 63 | 0.00% |
TheinvestmentoftheCompany’sR&D
| 2021 | 2020 | Percentageofchanges(%) | |
| R&Dinvestmentamount(CNY) | 10,919,262 | 4,531,418 | 140.97% |
| R&Dinvestmentasapercentageofoperatingincome | 0.28% | 0.13% | 0.15% |
| AmountofR&Dinvestmentcapitalized(CNY) | 0 | 0 | 0.00% |
| CapitalizedR&DinvestmentasapercentageofR&Dinvestment(CNY) | 0.00% | 0.00% | 0.00% |
Reasonsandeffectsofmajorchangesinthecompositionofthecompany’sR&Dpersonnel?Available?Notavailable
ReasonsforthesignificantchangeintheproportionoftotalR&Dinvestmentinoperatingincomecomparedwiththepreviousyear?Available?NotavailableReasonsforthesubstantialchangesinthecapitalizationrateofR&Dinvestmentanditsrationalityexplanation?Available?Notavailable
(5)Cashflow
Unit:CNY
Item
| Item | 2021 | 2020 | Year-on-yearincreaseordecrease(%) |
| Subtotalofcashinflowinoperatingactivities | 3,812,599,382 | 3,385,896,941 | 12.60% |
| Subtotalofcashoutflowinoperatingactivities | 2,687,216,724 | 2,880,750,268 | -6.72% |
| Netamountofcashflowgeneratedinoperatingactivities | 1,125,382,658 | 505,146,673 | 122.78% |
| Subtotalofcashinflowininvestmentactivities | 104,064,718 | 186,578,214 | -44.22% |
| Subtotalofcashoutflowininvestmentactivities | 279,720,766 | 328,946,684 | -14.96% |
| Netamountofcashflowgeneratedininvestmentactivities | -175,656,048 | -142,368,470 | -23.38% |
| Subtotalofcashinflowinfinancingactivities | 855,198,786 | 987,668,379 | -13.41% |
| Subtotalofcashoutflowinfinancingactivities | 1,354,745,101 | 1,693,437,449 | -20% |
| Netamountofcashflowgeneratedinfinancingactivities | -499,546,315 | -705,769,070 | 29.22% |
| Netincreaseofcashandcashequivalents | 449,661,924 | -344,734,365 | notavailable |
Explanationofmaininfluencefactorscontributingtogreatchangesinrelateddataonyear-on-yearbasis
□Available?NotavailableExplanationonthecausesofmajordifferencesbetweenthenetcashflowgeneratedbytheCompany’soperatingactivitiesandnetprofitofthisyearduringthereportperiod.
□Available?Notavailable
5.Analysistonon-mainbusiness
□Available?Notavailable
6.Assetsandliabilities
(1)Significantchangesofassetscomposition
Unit:CNY
Attheendof2021
| Attheendof2021 | Atthebeginningof2021 | Proportionincreaseordecrease(%) | Explanationonsignificantchanges | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Monetaryfunds | 1,567,095,993 | 11.63% | 1,194,214,929 | 9.11% | 2.52% | Nosignificantchanges |
| Receivables | 291,006,410 | 2.16% | 183,853,362 | 1.40% | 0.76% | Nosignificantchanges |
| Contractassets | 0% | 0% | 0% | Nosignificantchanges | ||
| Inventory | 2,802,622,520 | 20.80% | 2,945,548,651 | 22.48% | -1.68% | Nosignificantchanges |
| Investmentrealestate | 24,502,258 | 0.18% | 27,057,730 | 0.21% | -0.03% | Nosignificantchanges |
| Long-termequityinvestments | 46,496,510 | 0.35% | 48,263,507 | 0.37% | -0.02% | Nosignificantchanges |
| Fixedassets | 5,687,867,314 | 42.22% | 5,724,935,846 | 43.69% | -1.47% | Nosignificantchanges |
| Constructioninprogress | 590,172,099 | 4.38% | 635,495,152 | 4.85% | -0.47% | Nosignificantchanges |
| Right-of-useasset | 134,569,039 | 1% | 130,293,427 | 0.99% | 0.01% | Nosignificantchanges |
| Short-termborrowings | 622,066,457 | 4.62% | 689,090,715 | 5.26% | -0.64% | Nosignificantchanges |
| Contractliability | 147,120,716 | 1.09% | 135,073,280 | 1.03% | 0.06% | Nosignificantchanges |
| Long-termborrowings | 176,047,043 | 1.31% | 200,352,968 | 1.53% | -0.22% | Nosignificantchanges |
| Leaseliability | 101,811,588 | 0.76% | 98,401,900 | 0.75% | 0.01% | Nosignificantchanges |
Foreignassethasahighproportion?Available□Notavailable
Detailsofassets
| Detailsofassets | Formationreasons | Assetsscale | Location | Operationmode | Controlmeasuresforsafeguardingofassetsecurity | Earningcondition | ProportionofoverseasassetsintheCompany’snetassets | Whethertherearesignificantimpairmentrisks |
| HaciendaYVinedosMarquesDelAtrio.SL | Acquisitionofequity | 516,273,836 | Spain | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOonfinancialmanagement. | 13,169,484 | 4.83% | No |
| IndomitaWineCompanyChile,S.p.A. | Establishmentofjointventure | 511,244,907 | Chile | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | 19,716,978 | 4.78% | No |
| KilikanoonEstatePty.,Ltd. | Acquisitionofequity | 167,079,311 | Australia | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | 360,073 | 1.56% | No |
| FrancsChampsParticipationsSAS | Soleproprietorshipestablishment | 220,966,759 | France | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | -3,327,344 | 2.07% | No |
(2)Assetsandliabilitiesmeasuredatfairvalue
□Available?Notavailable
(3)LimitationsofassetsrightsuptotheendofthereportperiodPleaserefertothe“52.Assetswithrestrictiveownershiptitleorrightofuse”ofthe“Notestothefinancialstatements”inthisreport’sfinancialreport.
7.Investmentconditionanalysis
(1)Overallsituation?Available□Notavailable
Investmentamountduringthereportperiod(CNY)
| Investmentamountduringthereportperiod(CNY) | Investmentamountofthesameperiodoflastyear(CNY) | Variation |
| 148,020,000 | 305,280,700 | -51.51% |
(2)Casesofacquiredsignificantequityinvestmentsduringthereportperiod
□Available?Notavailable
(3)Casesofsignificantongoingnon-equityinvestmentsduringthereportperiod?Available□Notavailable
Unit:CNY
| Projectname | Investmentmode | Whetherbelongstofixedassetsinvestment | Involvedsectorsofinvestmentprojects | Investmentamountduringthereportperiod | Accumulatedactualinvestmentamountuptotheendofthereportperiod | Capitalsource | Projectprogress | Estimatedearnings | Accumulatedrealizedearningsuptotheendofthereportperiod | Reasonsforunreachedplanningscheduleandestimatedearnings | Disclosuredate(ifhave) | Disclosureindex(ifhave) |
| YantaiChangyuInternationalWineCityBlendingandCoolingCenter | Self-constructed | Yes | Liquorandalcoholicbeveragesector | 58,730,000 | 1,685,024,100 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | PleaserefertoResolutionAnnouncementofSeventhSessionBoardofDirectors4thMeeting,Resolution |
AnnouncementofSeventhSessionBoardofDirectors
thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors
thMeeting,ResolutionAnnouncementofEighthSessionBoardofDirectors
thMeetingandResolutionAnnouncementofEighthSessionBoardofDirectors
thMeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/)
| YantaiChangyuInternationalWineCityBottlingCenter | Self-constructed | Yes | 15,910,000 | 1,090,110,000 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | AnnouncementofSeventhSessionBoardofDirectors8thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors10thMeeting,ResolutionAnnouncementofEighthSessionBoardofDirectors4thMeetingandResolutionAnnouncementofEighthSessionBoardofDirectors7thMeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/) | |
| YantaiChangyuInternationalWineCityLogisticsCenter | Self-constructed | Yes | 0 | 462,677,200 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | ||
| ChangyuVineandWineResearchInstitute | Self-constructed | Yes | 26,880,000 | 179,854,800 | Ownedfund | 98% | 0 | 0 | — | 2017.04.22 | ||
| TreasureWineChateau | Self-constructed | Yes | 0 | 211,320,000 | Ownedfund | 95% | 0 | 0 | — | 2017.04.22 | ||
| KoyaBrandyChateau | Self-constructed | Yes | 0 | 207,095,500 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | ||
| Oakbarrelprocurementproject | Self-constructed | Yes | 46,500,000 | 148,084,200 | Ownedfund | 80% | 0 | 0 | — | 2021.04.28 | ||
| Total | -- | -- | -- | 148,020,000 | 3,984,165,800 | -- | -- | 0 | 0 | -- | -- | -- |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
(4)Financialassetsinvestment①Securityinvestmentsituation
□Available?NotavailableTherearenosecurityinvestmentsfortheCompanyduringthereportperiod.
②Derivativesinvestment
□Available?NotavailableTherearenoderivativesinvestmentsfortheCompanyduringthereportperiod.
(5)Theusagesituationofraisedcapital□Available?NotavailableTherearenousagesituationsofraisedcapitalfortheCompanyduringthereportperiod.
8.Saleofsignificantassetsandequities
(1)Saleofsignificantassets□Available?NotavailableTheCompanydidnotsellsignificantassetsduringthereportperiod.
(2)Saleofsignificantequities
□Available?Notavailable
9.Analysisofmainholdingandjointstockcompanies?Available?NotavailableSituationofmainsubsidiariesandjointstockcompaniesaffectingover10%oftheCompany’snetprofit
Unit:CNY
Companyname
| Companyname | Companytype | Mainbusiness | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| YantaiChangyuPioneerWineSalesCo.,Ltd. | Subsidiary | Sales | CNY8million | 989,932,250 | 176,281,834 | 2,670,739,279 | 639,123,060 | 509,991,945 |
| YantaiChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY5million | 169,968,188 | 151,271,261 | 1,040,063,518 | 117,359,790 | 87,244,317 |
| ChangyuTradingCo.,Ltd.inDevelopmentZoneofYantai | Subsidiary | Sales | CNY5million | 66,005,809 | 14,386,591 | 181,246,321 | 68,884,834 | 46,573,280 |
| LaizhouChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY1million | 55,767,467 | 1,000,000 | 259,246,590 | 77,371,763 | 58,027,832 |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
Acquisitionanddisposalofsubsidiariesduringthereportperiod
□Available?NotavailableExplanationonmainholdingandjointstockcompanies
10.SituationofthestructuredsubjectscontrolledbytheCompany
□Available?Notavailable
11.ExpectationfortheCompany’sfuturedevelopmentOnthebasisofourlimitedexperienceandprofessionalskills,theCompanymakesthefollowingjudgmentsonthewineindustryandfuturedevelopment:
(1)ThesectorcompetitionpatternanddevelopmenttrendAffectedbytheincreaseintheuncertaintycausedbytheslowdownofnationalmacroscopiceconomygrowthandotherfactorssuchasCOVID-19epidemic,thewineconsumptionsceneisblockedandisobviouslysqueezedbyotheralcoholicproducts.Mostwinecompanieshavesmallscaleswithpoorprofitabilityanddonothavemuchresourcesforcultivatingthemarket.Thefullrecoveryofthewinemarketwilltakealonghardtime.Althoughthedevelopmentofthewineindustryiscurrentlyencounteringsomedifficulties,therearealsolotsofpositivefactorsforthedevelopmentoftheindustry.PresidentXiJinpingpointedoutthat‘China’swineindustryhasgreatprospects’whenheinspectedNingxia.Thelocalgovernmentsofallwine-producingregionsareactivelyrespondingtosupportthedevelopmentofthewineindustry.Theatmosphereofdomesticwineconsumptionandtheperceptionofhealthywineconsumptionaregraduallyforming.Youngconsumergroupshavethemomentumtoswitchtowineconsumption.Consumptionofdomesticproductshasgraduallybecomeafashion.Inthelongrun,thehugedevelopmentpotentialhasnotchanged.Insuchacaseoflong-termcoexistenceofopportunitiesandchallenges,thoseenterprisesthatpossessstrongbrandinfluenceandmarketingability,catchtheopportunities,activelytakeadjustments,makefulluseofnewlyemergingandtraditionalsaleschannels,makeeffortstoguideandcultivatewineconsuminggroups,timelysatisfytheconsumers’demandsandprovideproductswithhighcostperformancewillhavetheopportunitytobethefinalwinnerofcompetitions,andthenformanewpatternofthefutureChinesewinemarket.
(2)TheCompany’sdevelopmentstrategyTheCompanywilladheretothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonbigproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,continueimprovingtherelativelyindependentsystemconstructionofwine,brandy,importedwineandoverseasbusiness,enhancewine,scaleupbrandy,improveimportedwine,stabilizeoverseasbusinessandpromotetheall-rounddevelopmentofvariousalcoholproducts.
(3)ManagementplanforthenewyearIn2022,theCompanywilltryitsbesttorealizeoperatingrevenueofnotlessthanCNY4.3billionandcontrolthemainoperatingcostsandthreeperiodexpensesbelowCNY3.4billion.
(4)MeasurestobetakenbytheCompany
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
In2022,theChina’seconomicdevelopmentiscurrentlyfacingtriplepressuresincludingdemandcontraction,supplyshock,andweakeningprediction,andthedevelopmenttrendofthewineindustryisstillnotoptimistic.TheCompanywilltake130
thanniversaryofChangyu’sestablishmentasanopportunitytomobilizedallmembersoftheCompany,integratevariousresources,standatanewstartingpointandimplementnewmeasurestopromotetheCompanytomoveforwardinadversityandachievegreaterdevelopment.Thefirstistoreformthemarketsystem,increasemarketinginnovationandpromotetheCompany’sdevelopment.Accordingtodifferenttypesofwinevariety,grades,consumergroupsandmarketingmethods,theCompanyestablishedsixbusinessdivisions,thatinclude:establishingLongyubusinessdivisiontofurtheronhigh-endstrategicbrands;establishingChateauwinebusinessdivisiontostabilizeandconsolidatetheexistinghigh-endwinemarket;establishingtheNobelDragonbusinessdivisiontostabilizethebasicmarketsales;establishingbrandybusinessdivisiontoformamoreindependentbrandysalessystem;establishingimportedwinebusinessdivisiontocontinuetospecializeinimportedwinebusiness;establishingonlinebusinessdivisiontoseekgreaterdevelopmentofonlinebusiness.TheCompanyfocusesmoreonmarketingstrategiesandinvestment,integratesmoreinvestment,prescribedmarketingactions,investsmoreinthecultivationoftargetconsumergroupsandcorebrandpromotion,andaccuratelyreachesthemiddleandhigh-endconsumerclassandcapturestheiterationofyoungconsumergroupstoexploremoremarketinginnovationopportunities.TheCompanycontinuestodeepencooperationwithe-commerceplatformssuchasJD.comandTmall,vigorouslypromotesdigitaltransformation,integratesandopensupvariousbusinessmodules,andcontinuouslyempowerstheonlineandofflineoperationsystemandperformancegrowth.Thesecondistoadheretotheconceptof“consumerfirst”andcontinuouslyimproveproductquality.TheCompanycontinuestodoagoodjobintheconstructionofgrapebases,vigorouslycultivatesmallvarietiesofredgrapesandwhitegrapesthatareinlinewiththeregionandcontinuestodoagoodjobintheresearchanddevelopmentofspecialproductssuchascollectiblewine,customizedwine,tourismproductsandcommemorativewine;Innovatebasemanagementmethods,strengthenprocesscontrol,scientificallyjudgetheharvestperiodandmarked-basedpricing,andimproveproductqualityfromthesource.Strengthenqualitysupervisionthroughouttheentireprocess,accuratelygraspconsumerneedsandstrivetosatisfyconsumers.Thethirdistostrengthentheconstructionoftalentteamandcontinuetocultivatereserveforces.TheCompanycontinuestostrictlycontroltheimportofpersonnel,releasetheexportofpersonnel,streamlinetheallocationofmanagementpersonnelandsteadilyreducethenumberoffront-lineemployeesintheproductionsystemonthepremiseofensuringthebasicstabilityofkeypersonnelinordertoincreasewagesandefficiencybyreducingstaff.TheCompanytightensrecruitmentstandards,expandsrecruitmentchannelsandvigorouslyintroducesprofessionaltalentsintechnology,sales,management,etc.;continuetoimplementthetrainingplanforyoungtalents,strengthenprofessionaltraining,improveability,tappotentialandincreasethetrainingandreserveofyoungtalents.ThefourthistofocusonenhancingtheCompany’sbrandandstrengtheningtheindustrialtourismindustry.Furtherstandardizethereceptionoftourists,strengthenprofessionaltraining,improvereceptionlevel,improveservicequality,enhancetourists’satisfaction,improvetheCompany’simageandbrandreputation,andstrivetoconverttouristsintofansoftheCompany’sproductsandbrand.Committedtocreatingpersonalizednewproductswithnovelimagesanduniquestylesto
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
impressandattracttourists;strengthenorganizationalreform,completetheintegrationoftourismbusiness,eliminatefunctionaloverlapandmultiplemanagement,increasepercapitatouristreceptionandpercapitaefficiencytopromotetourismbusinesstoahigherlevel.ThefifthistodoagoodjobinbasicmanagementtoensurethehealthyoperationoftheCompany.AlloperationsanddecisionsoftheCompanymustbeanalyzedforlegalfeasibilityandlegitimacy,adheretothebottomlineoflawsandsystems,operateincompliancewithlawsandpreventlegalrisks.Strictlyfollowandimplementvarioussafetymanagementrulesandregulations,strengthensafetymanagement,improveriskpreventionandcontrolandemergencyresponsemechanismsandensuresafeoperation.Improvethescientificityandaccuracyofbudgetpreparation,strengthenbudgetperformancemanagement.Strengthentheauditoftheauthenticityofprofits,theauthenticityofinventory,theauditofkeycostsandexpenses,theauditofinvestmentprojectsintechnologicaltransformationandadvertisingexpenses,andincreaseaccountabilityforeconomiclosses.Furtherimprovethefinancialmanagementsystemofoverseassubsidiaries,strengthendynamicmonitoringandoperationanalysis,continuetopayattentiontotheoperationandcapitalrisksofoverseasenterprises,andimprovetheriskpreventionandcontrolcapabilitiesofoverseasenterprises.ThesixthistocoordinatethepreparationsfortheseriesofactivitiesofChangyu’s130
thanniversary.Duringtheyear,theCompanywillorganizeandcarryoutaseriescelebrationoftheChangyu’s
th
establishmentanniversarytogetherwithvariousdepartments,leadersatalllevel,brotherenterprises,expertsandscholars,distributors,consumers,domesticandforeignpartnersandtheCompany’semployees,whosupportthedevelopmentofChangyu,toimprovethereputationandinfluenceofChangyubrand.
(5)Potentialrisks
①RiskinpricefluctuationofrawmaterialsGrapesaretheCompany’smainrawmaterials.Thegrape’syieldandqualityareaffectedtoacertainextentbythenaturalfactorssuchasdrought,wind,rain,frostandsnow.TheseforcemajeurefactorsgreatlyinfluencethequantityandpriceofthegrapesinthisCompanyordersandaddtheuncertaintytotheCompany’sproductionandoperation.Therefore,theCompanywilllowertherisksthatarelikelytoaffectgrapequalityandresultinpricefluctuationbymeansofexpandingtheself-runvineyards,strengtheningthevineyardmanagementandoptimizingthelayoutofvineyards.
②RiskinuncertaintyofmarketinputandoutputTocopewiththecutthroatmarketcompetitionandtomeettheneedsformarketdevelopment,theCompanyhasinputmoreandmorecapitalinthemarketandthesalesexpensehastakenupahigherpercentagepointinthebusinessrevenue.Theinput-outputratiowillaffecttheCompany’soperatingresultstoagreatextentandtheriskthatsomeinvestmentsmaynotreachtheexpectationsislikelytooccur.Therefore,theCompanywillstrengthenmarketresearchandanalysis,enhancemarketforecastaccuracyandcontinuetoperfecttheinput-outputevaluationsystemtoensuretheinvestmentsinmarkettobesatisfactoryasexpected.
③RiskinproducttransportTheCompany’sproductsarefragileandsenttodifferentplacesallovertheworld,mostlybysea,railwayandexpressway.Thepeakseasonofsalesisusuallyincoldwinterandclosetothespringfestivalwhenmarkethasagreatdemand.Atthattime,thenaturalandhumanfactorssuchasseriousshortageoftransportcapacityresultingfrombusyflowofpeopleandgoods,wind,snow,freezingaswellastrafficaccidentsmakethetransportdepartmentsdifficulttosendproductstomarketsintimeandsafely.Asaresult,itmakesthisCompanyhavetofacetherisksofmissingthepeakseasonof
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
sales.Therefore,theCompanywilladoptallmethodspossiblelikemakingprecisesalespredictionandwelldesignedconnectionofproductionandsales,reasonablyarrangingproductionandtransportmeansandmakinguseofmoreavailablewarehousesindifferentplacestolowerthesekindsofrisks.
④RiskininvestmentfaultsTheCompanyinvestedmanyprojectsinthepreviousperiodsandtheinvestmentamountswererelativelylarge.Forindividualproject,owingtotheinfluenceofvariousfactors,itledtohavetherisksoffacingwiththeinvestmentamountoutofbudgetorhardlytakingbacktheexpectedinvestmentearnings.TheCompanywilltakeanadequateargumentandscientificdecision-makingforinvestmentprojects,tryhardtoreduceandavoidinvestmentrisks.
⑤RiskinexchangerateTheCompany’soverseassubsidiariesexportproductstomanydifferentcountriesandtheexportamountisrelativelylarge.Theremaybeexchangelossesorgainsduetoexchangeratefluctuation.
⑥RiskinepidemicriskTheCompany’sproductsarecurrentlymainlyusedforpeople’sconsumptionatgatherings.Ifthechanceofgatheringdeclinesduetotheepidemic,itmayhaveagreaternegativeimpactontheCompany’sproductsales.
⑦OtherrisksDuringtheproductionandsalesoftheCompany’sproducts,itmaybeaffectedbyforcemajeuresuchaswars,typhoons,earthquakes,etc..
12.Activityregistrationformforreceptionsofresearch,communication,visitandotheractivitiesduringthereportperiod?Available□Notavailable
Reception
time
| Receptiontime | Receptionplace | Receptionpattern | Typeofreceptionobject | Receptionobject | Maindiscussedcontentsandprovideddata | Basicsituationindexofreception |
| 2021.05.12 | www.quanjing.com | Other | Other | Secondarymarketinvestors | TherecentproductionandoperationsituationoftheCompany | ThewebsiteofShenzhenStockExchange(https://biz.szse.cn) |
| 2021.05.18 | TheCompany’smeetingroom | Fieldresearch | Institution | Mr.WangPengfromICBCCS,Mr.WangYongmingfromNewChinaFund,Mr.LiuAofeifromXiangcaiFund,Mr.LeiKaifromNewChinaAsset,Mr.GaoBoandMs.TangChenchenfromFundingCapitalManagementCompanyandMs.DengTianjiaofromBOCInternational(China)Co.,Ltd. | TherecentproductionandoperationsituationoftheCompany | ThewebsiteofShenzhenStockExchange(https://biz.szse.cn) |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
IV.CorporateGovernance
1.CurrentCorporateGovernanceSituationoftheCompany
(1)Aboutshareholdersandshareholders’meetingTheCompanyhassetuptheDeliberationRulesofShareholders’Meeting,andconvenedtheshareholders’meetingsinstrictaccordancewithrequirementsofstandardopinionsofshareholders’meeting,madethegreatefforttoprovideconvenientconditionsformoreshareholderstoparticipatetheshareholders’meeting,andensuredallshareholderstoenjoysameequityandwellexercisedtheirrights.TheCompanydrewgreatattentiontothecommunicationandexchangewithshareholders,activelyrespondedtheshareholders’inquiryandquestions,andwidelylistenedtothesuggestionsandcommentsfromshareholders.
(2)AbouttheCompanyandholdingshareholderTheCompanyhasindependentbusinessandself-managementcapacity,whichisindependentfromthecontrollingshareholdersinbusiness,staffs,assets,institutionsandfinance.TheBoardofDirectors,BoardofSupervisors,managementteamsandalsointernalinstitutionsareabletooperateindependentlyintheCompany.ThecontrollingshareholdersoftheCompanycouldregulatetheirbehaviorswithoutdirectlyorindirectlyinterferingintheCompany’sdecision-makingandbusinessactivitiesbeyondtheshareholder’smeeting;meanwhile,thereisnocaseofencroachingontheCompany’sassetsanddamagingtheinterestoftheCompanyandminorityshareholders.
(3)AboutthedirectorandboardofdirectorsTheCompanystrictlyappointsalldirectorsinlightofCorporationActandArticlesofAssociations.Thequalificationsofalldirectorsareinlinewiththerequirementsoflawsandregulations.InaccordancewiththerequirementsofCorporateGovernanceGuidelines,theCompanyhascarriedoutthecumulativevotingsysteminthedirectorselection.Atpresent,theCompanyhasfiveindependentdirectorsaccountingforaboveonethirdofalldirectors,andthenumberandpersonnelcompositionofboardofdirectorswasbasicallyinaccordwithrequirementsofregulationsaswellasArticlesofAssociations.AlldirectorsoftheCompanywereabletocarryoutworkinaccordancewiththeRulesofBoardofDirectors’ProcedureandWorkingRulesforIndependentDirectors,punctuallyattendedtheboardofdirectors’andshareholders’meetings,activelytookpartinrelevantknowledgetraining,werefamiliarwiththelawsandregulationsconcerned,hadadeepknowledgeandlongexperienceofpractitioners,andperformedtheirdutiesaccordingtothelawandregulations.TheBoardofDirectorsconvenedthemeetingscomplieswithrelevantlawsandregulations.
(4)AboutsupervisorandboardofsupervisorsTheCompanystrictlyelectedallsupervisorsinlightoftheproceduresstipulatedintheCorporationActandArticlesofAssociations.Atpresent,boardofsupervisorshasthreepeopleamongwhichonesupervisorisrepresentativeforstaff.Thenumberandcompositionofboardofsupervisormeettherequirementsofregulationsandlaws.AllsupervisorsoftheCompanycouldfollowtherequirement
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
ofRulesofBoardofSupervisors’Procedure,insisttheprincipleofresponsibilitytoallshareholders,seriouslyperformtheirduties,effectivelysuperviseandpresenttheirindependentopinionsonimportantissues,interrelateddeals,financialstatus,thedutyperformanceofdirectorsandmanagersoftheCompany.
(5)AboutperformanceevaluationandincentivesystemTheengagementofmanagerswasopenandtransparent,andaccordedwithlawsandregulations.TheCompanyhasestablishedandgraduallyimprovedtheperformanceevaluationstandardandformedefficientincentivesystem,soastoensurethesalaryofstafftobelinkedwithworkperformance.
(6)AboutstakeholdersTheCompanycouldfullyrespectandsafeguardthelegalrightsofthepartywithrelevantbenefit,cooperateactivelywiththestakeholders,jointlydrivetheCompanytodevelopcontinuallyandstably,paygreatattentiontotheissuessuchaslocalenvironmentalprotectionandpublicutilitiesetc.,andfullyassumetheduesocialresponsibility.
(7)AbouttheinformationdisclosureandtransparencyTheCompanyhasappointedtheboardsecretarytoberesponsibleastheheadofinvestorrelationmanagementincludinginformationdisclosure,investorrelationsmanagementandreceptionofshareholders’visitandconsultation.TheCompanyhasalsoassignedChinaSecuritiesNewspaper,SecuritiesTimes,HonkongCommercialDailyandwebsitehttp://www.cninfo.com.cn/todiscloseinformation,punctually,accuratelyandtrulydisclosedanyinformationinthelightofrequirementofrelevantlawsandrules,andalsoensuredallshareholderstohavesameopportunitytoacquireanyinformation.InordertofurtherperfecttheCompany’sgovernancesystem,duringthereportperiod,theCompanyformulatedandimprovedthemanagementsystemsincluding2021ProductQualityAssessmentMeasures,RequirementsforFurtherStrengtheningtheManagementofPackagingMaterialSuppliers,OpinionsonStandardizingtheManagementofInformalEmploymentinProductionandTourismSystemsandsoon.WhetherornotthereissignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandthenormativedocumentsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
□Yes?NoThereisnosignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandthenormativedocumentsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
2.Relativetothecontrollingshareholderandactualcontroller,independenceoftheCompanyonensuringthecompany’sassets,personnel,finance,organization,business,etc.
(1)PersonnelArrangementTheCompany’sgeneralmanager,deputygeneralmanagersandotherseniorofficers,allofwhomwerepaidbytheCompanyanddidnotholdanyconcurrentadministrativeranksinthecontrolling
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
units.TheCompanywasentirelyindependentinpersonnelarrangement,conclusionandadjustmentoflaborcontractsthankstoitssoundandindependentsystemforlabor,personalandsalarymanagement.
(2)AssetsTangibleassetsandIntangibleassetsincludingtrademark,industrialpropertyrightandnon-patenttechnologieswereallclearlydividedbetweentheCompanyandthecontrollingshareholders,andalllegalformalitieswerecompleted.Asanindependentlegalentity,theCompanyoperatesindependentlyinaccordancewiththelaw,anddoesnotprovideanyformofguaranteewithitsassetsforshareholders’orindividuals’liabilitiesorotherlegalornaturalpersons.Duetothehistoricalissues,theownershipoftrademarkssuchas“张裕”(Changyu)thattheCompanyispermittedtousethatarestillremainedwiththecontrollingshareholder.Exceptforaverysmallnumberoftrademarkssuchas“张裕”(Changyu),theCompanyhasownershiprightsofthevastmajorityoftrademarksbeingusedbytheCompany,whichensurestheindependenceandcompletenessoftheCompany’sassets.
(3)FinanceTheCompanyisequippedwithindependentfinancedepartment,financialadministratorandfinancialandaccountingstaff,aswellasacomplete,independentandstandardizedfinancialaccountingsystem.TheCompanyalsoopeneditsownbankaccounts,independentandlegallypayingtaxesandworkersinsurancefund.Allfinancialindividualsdonotholdanyconcurrentpostsinassociatedcompaniesandareabletomakefinancialdecisionsindependently.TheCompanyhasitsownauditdepartment,whichisespeciallyresponsiblefortheinternalauditworkoftheCompany.
(4)IndependentInstitutionsTheCompanyhassetupasoundorganizationalframework,inwhichtheBoardofDirectorsandBoardofSupervisorsoperateindependently,nosuperiorandsubordinaterelationshipexistsbetweenthefunctionaldepartmentsofthecontrollingshareholder.TheCompanyhasitsownindependentproduction&businessoffices,andallfunctionaldepartmentsareindependenttoexercisetheirpowersandcarryouttheproductionandbusinessactivitiesindependently.
(5)OperationsTheoperationsoftheCompanyareindependentofthecontrollingshareholders.TheCompanyownsitselfcompletelyindependentsystemscoveringresearchanddevelopment,financialaccounting,laborandhumanresource,qualitycontrol,rawmaterialspurchase,productionandsales,hastheindependentmanagementability,anddoesnothavetheproblemthatentruststhecontrollingshareholderstobuyandselloncommission,norexistthehorizontalcompetitionwithcontrollingshareholders.
3.SituationforHorizontalCompetition
□Available?Notavailable
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
4.Informationfortheshareholders’meetingandinterimshareholders’meetingheldduringthereportperiod
(1)Informationfortheshareholders’meetingduringthereportperiod
Session
| Session | Meetingtype | Participationratioofinvestors | Conveningdate | Disclosuredate | MeetingResolution |
| 2020AnnualShareholders’Meeting | Annualshareholders’Meeting | 62.28% | 2021.05.27 | 2021.05.28 | Themeetingdeliberatedandapprovedthe2020AnnualBoardofDirectors’WorkReport,2020AnnualBoardofSupervisors’WorkReport,2020AnnualReport,Proposalon2020AnnualProfitDistribution,ProposalonAppointingCertifiedPublicAccountantsFirmandProposalon2021AnnualFinancialBudget. |
(2)Requestforconveninginterimshareholders’meetingbypriorityshareholdersowingrecoveredvotingright
□Available?Notavailable
5.SituationforDirectors,Supervisors,SeniorExecutivesandStaff
(1)Changesinshareholdingsofdirectors,supervisorsandseniorexecutives
| Name | Post | Status | Gender | Age | Beginningdateoftenure | Endingdateoftenure | Sharesheldatthebeginningoftheperiod | Increasedsharesduringtheperiod | Decreasedsharesduringtheperiod | Otherchangesofsharesheld | Sharesheldattheendoftheperiod | Reasonsoftheincreaseanddecreasechangeofsharesheld |
| ZhouHongjiang | Chairman | Incumbent | M | 57 | 2002.05.20 | 2022.05.18 | 36,500 | 1,300 | 37,800 | Secondarymarketpurchases | ||
| LengBin | Director | Incumbent | M | 59 | 2000.08.22 | 2022.05.18 | 0 | 0 | ||||
| SunJian | Director | Incumbent | M | 55 | 2019.05.17 | 2022.05.18 | 30,000 | 30,000 | 60,000 | Secondarymarketpurchases | ||
| LiJiming | Director | Incumbent | M | 55 | 2019.05.17 | 2022.05.18 | 0 | 0 |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
ChenDianxin
| ChenDianxin | Director | Incumbent | F | 55 | 2019.05.17 | 2022.05.18 | 0 | 0 | |
| AldinoMarzorati | Director | Incumbent | M | 69 | 2006.12.07 | 2022.05.18 | 0 | 0 | |
| StefanoBattioni | Director | Incumbent | M | 63 | 2020.05.27 | 2022.05.18 | 0 | 0 | |
| EnricoSivieri | Director | Incumbent | M | 53 | 2019.05.17 | 2022.05.18 | 0 | 0 | |
| ChiangYun | Director | Incumbent | F | 54 | 2020.06.19 | 2022.05.18 | 0 | 0 | |
| LuoFei | Independentdirector | Incumbent | M | 69 | 2016.09.23 | 2022.05.18 | 0 | 0 | |
| DuanChangqing | Independentdirector | Incumbent | M | 57 | 2019.05.17 | 2022.05.18 | 0 | 0 | |
| LiuHuirong | Independentdirector | Incumbent | F | 58 | 2019.05.17 | 2022.05.18 | 0 | 0 | |
| LiuQinglin | Independentdirector | Incumbent | M | 58 | 2019.07.02 | 2022.05.18 | 0 | 0 | |
| YuRenzhu | Independentdirector | Incumbent | M | 43 | 2020.05.27 | 2022.05.18 | 0 | 0 | |
| KongQingkun | ChairmanoftheBoardofSupervisors | Incumbent | M | 49 | 2013.05.14. | 2020.05.18 | 0 | 0 | |
| ZhangLanlan | Supervisor | Incumbent | F | 52 | 2013.05.14. | 2020.05.18 | 0 | 0 | |
| LiuZhijun | Supervisor | Incumbent | M | 41 | 2016.05.26 | 2020.05.18 | 0 | 0 | |
| SunJian | Generalmanager | Incumbent | M | 55 | 2018.01.10 | 2022.05.18 | 0 | 0 | |
| LiJiming | Deputygeneralmanager | Incumbent | M | 55 | 2019.05.28 | 2022.05.29 | 0 | 0 | |
| JiangHua | Deputygeneralmanager | Incumbent | M | 58 | 2001.09.14 | 2022.05.29 | 0 | 0 | |
| PengBin | Deputygeneralmanager | Incumbent | M | 55 | 2018.01.10 | 2022.05.29 | 0 | 0 | |
| JiangJianxun | DeputygeneralmanagerandBoardsecretary | Incumbent | M | 55 | 2019.05.28 | 2022.05.29 | 0 | 0 | |
| PanJianfu | Generalmanagerassistant | Incumbent | M | 46 | 2018.04.19 | 2022.05.29 | 0 | 0 | |
| LiuShilu | Generalmanagerassistant | Incumbent | M | 47 | 2018.04.19 | 2022.05.29 | 0 | 0 |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
XiaoZhenbo
| XiaoZhenbo | Generalmanagerassistant | Incumbent | M | 45 | 2018.04.19 | 2022.05.29 | 0 | 0 | ||||
| Total | -- | -- | -- | -- | -- | -- | 66,500 | 31,300 | 0 | 0 | 97,800 | -- |
Isthereanyresignationofdirectorsandsupervisorsanddismissalofseniormanagementpersonnelduringtheirtermofofficeduringthereportingperiod?Yes?NoChangesofdirectors,supervisorsandseniormanagersofthecompany?Available?Notavailable
(2)SituationforworkexperienceTheprofessionalbackground,mainworkexperiencesandpresentpositionsoftheCompany’sdirectors,supervisorsandseniorexecutives
①MembersofBoardofDirectorsMr.ZhouHongjiang,male,57,Chinese,withdoctoraldegree,seniorengineer,usedtobetheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd.,theDeputyGeneralManager,theGeneralManagerandtheDeputyChairmanofYantaiChangyuPioneerWineCo.,Ltd..Heisincumbentastherepresentativeofthe13
th
NationalPeople’sCongress,theChairmanofYantaiChangyuGroupCo.,Ltd.,andtheboarddirectorandtheChairmanoftheCompany.Mr.LengBin,male,59,Chinese,withmasterdegree,senioraccountant,usedtobetheDeputySectionChiefandtheSectionChiefofYantaiAuditBureau,theboarddirectorandtheChiefAccountantofYantaiChangyuGroupCo.,Ltd.andtheboarddirectorandtheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectoroftheGroupCompanyandtheCompany,withanadditionalpostoftheGeneralManageroftheGroupCompany,andtheChairmanandGeneralManagerofYantaiZhongyaMedicalHealthWineCo.,Ltd..Mr.SunJian,male,55,Chinese,MBA,usedtobetheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectorandtheGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectoroftheGroupCompany.Mr.LiJiming,male,55,Chinese,withdoctoraldegree,applicationresearcher,usedtobetheChiefEngineeroftheCompany.HeisincumbentastheboarddirectorandtheDeputyGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectoroftheGroupCompany.
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
Ms.ChenDianxin,female,55,Chinese,withmasterdegreeofthePartySchool;fromJuly1985toOctober2018,sheusedtoserveasstaffofYantaiChemicalPurchasingandSupplyStation,staffofYantaiStated-ownedAssetsAssessmentCenter,theDeputyDirectorofYantaiStated-ownedAssetsAssessmentCenter,theDeputySectionChiefofAssetsAssessmentManagementDepartmentinYantaiState-ownedAssetsBureau,theDeputySectionChiefofAssetsAssessmentManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,full-timeDeputySecretaryofPartybranchinYantaiState-ownedAssetsSupervisionandAdministrationCommission,theSectionChiefofPropertyManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,theDirectorofretiredcardersworkofficeandtheSectionChiefofPropertyManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,andtheDirectorofretiredcardersworkofficeinYantaiState-ownedAssetsSupervisionandAdministrationCommission.SinceOctober2018,shehasbeenservedastheDeputySecretaryofPartybranchandtheGeneralManagerofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.andthecurrentboarddirectorofYantaiChangyuGroupCo.,Ltd.andtheCompany.Mr.AldinoMarzorati,male,69,Italian,withbachelordegree,servescurrentlyastheGeneralManagerofIllvaSaronnoHoldingS.p.A,thememberoftheboardofdirectorsofsomebranchesundertheGroupCompany,andtheboarddirectorofChangyuGroupCo.,Ltd.andtheCompany.Mr.StefanoBattioni,male,63,Italian,graduatedwithabachelor’sdegree.HehasservedasaSeniorProductManagerofColgatePalmoliveinItaly,theMarketingDirectorofBarillaHolding,theInternationalMarketingDirectorandtheSpiritsBusinessUnitDirector-GeneralManagerofIllvaSaronnoS.p.A.(aspiritcompanyasawholly-ownedsubsidiaryofIllvaSaronnoHoldingS.p.A.).HeiscurrentlytheCEOofIllvaSaronnoS.p.A.andtheboarddirectorofChangyuGroupCo,.Ltd.andtheCompany.Mr.EnricoSivieri,male,53,Italian,withbachelordegree,servedsuccessivelyasthefinancialcontrollerofARNEGS.p.a.,thecommercialanalystofSPILLERSFOODSITALIAS.p.a.,thetradecontrollerofNestle’PurinaPetcareEurope,Europeanmarketing&salescontrollerofNestle’PurinaPetcareEurope,theEuropeansupplychaincontrollerofNestle’PurinaPetcareEurope,theSouthernEuroperegionalcontrollerofNestle’PurinaPetcareEuropeandtheDirectorofgroupfinancialcontrollingofIllvaSaronnoHoldingS.p.A.,andcurrentlyservingasamemberoftheboardofdirectorsforRoyalOakDistilleryLtd.andtheGeneralManagerofIllvaSaronnoHoldingS.p.A.,andtheboarddirectoroftheCompany.Ms.ChiangYun,female,54,successivelyobtainedBachelorofSciencedegreeMagnaCumLaudefromVirginiaTech,Virginia,EMBAofTheKelloggSchoolofManagementatNorthWesternUniversity,USAandEMBAofTheGraduateSchoolofManagement,HongKongUniversityofScienceandTechnology,HongKong,China.SheusedtoactedasDirectoratAmericanInternationalGroup(AIG)directinvestmentteam,theManagingPartnerofPacificAllianceGroup(PAG).ShecurrentlyservesastheINEDandmemberofAuditCommitteeandNominationCommitteeinLasVegasSandsChina,theINEDandmemberofAuditCommittee,RemunerationsCommitteeandNominationCommitteeinGoodbabyInternationalHoldingLtd.,theINED,memberofAuditCommitteeandNominationCommitteeandChairladyofRemunerationsCommitteeinPacificCenturyPremiumDevelopmentsLtd.,theINEDandmemberofAuditCommitteeandHealth,SafetyandSecurityCommitteeinMerlinEntertainmentsplc.,theCEOand
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
FoundingPartnerofProspereCapital,andtheboarddirectoroftheGroupCompanyandtheCompany.Mr.LuoFei,male,69,Chinese,withdoctoraldegree,visitingscholarofUniversityofToronto,doctoralsupervisors,GovernmentSpecialAllowanceexpert,firstbatchoftrans-centurysubject(academic)leadingpersonalsofFinancialDepartment.HesuccessivelyservedastheDeanofAccountingInstituteinZhongnanUniversityofEconomicsandtheDeanofAccountingInstituteinZhongnanUniversityofEconomicsandLaw.HefocusesonthestudyofFinancialAccounting,CostAccounting,FinancialManagement,andsoon.Hehasworkedincompaniesformanyyearsandhaspracticalworkingexperiencewithcompanies.NowheisservingasanindependentdirectoroftheCompany.Mr.DuanChangqing,male,57,Chinese,withdoctoraldegree,professor,doctoralandmaster’ssupervisor,andthenationalseniorwinemakerandseniorwinetaster.HecurrentlyservesasthechiefscientistofnationalgrapeindustrytechnologysystemandtheDirectorofWineProcessingKeyLaboratoryofMinistryofAgricultureandRuralAffairs.Meanwhile,heholdsconcurrentpostsoftheDirectorofChinaWineTechnologyCommittee,theDirectorofChinaWineandFruitWineExpertCommittee,theExecutivePresidentandtheSecretaryGeneralofGrapeandWineBranchofChineseHorticulturalSocietyandtheVicePresidentofChinaAgriculturalSocietyGrapeBranch.Hismajorresearchfieldsarethebasictheoreticalresearchandrelatedhighandnewtechnologyresearchanddevelopmentaswellasapplicationpromotionworkinthedirectionofsuitabilitybetweenecologyinproducingareaandgrapevarietyandliquorvariety,evolvementmechanismanddirectionalbrewingofwineflavorformation,grapefruitflavormetabolismregulationandproductflavorqualityevaluationandsoon.HeisacurrentindependentdirectoroftheCompany.Ms.LiuHuirong,female,58,Chinese,withdoctoraldegree,theformerDeputyDeanandDeanoftheInstituteofPoliticalScienceandLawofOceanUniversityofChina.SheusedtoserveasanindependentdirectorofSailunGroupCo.,Ltd.,LongdaMeatandSacredSunCo.,Ltd.andShandongSacredSunPowerSourcesCo.,Ltd..Currently,sheisasecond-levelprofessoranddoctoralsupervisorofOceanUniversityofChinaandwithadditionalpostasaresearcherofthe“BeltandRoadInitiative”JudicialResearchCenteroftheSupremePeople’sCourt,anexpertattheSupremePeople’sCourtforforeign-relatedcommercialandmaritimeactionexpertdatabase,theDeputyChairmanofthesixthShandongLawSocietyandtheDeputyDirectoroftheAcademicCommittee,andtheChairmanoftheQingdaoLaw-basedGovernmentResearchInstitute.HerresearchfieldsareInternationalLawandLegislativeScience.ShehaswonthetitleofShandongTopTenOutstandingYoungandMiddle-agedJurists,thethirdprizeofExcellentSocialScienceAchievementoftheMinistryofEducation,thethirdprizeofShandongExcellentSocialScienceAchievement,thesecondprizeofShandongExcellentPhilosophyandSocialScienceAchievement,thefirstprizeofExcellentAchievementofShandongEducationDepartmentandtheTopTalentinQingdaoCity.SheisacurrentanindependentdirectoroftheCompany.Mr.LiuQinglin,male,58,doctoraldegreeofManagement,Chinese,nooverseaspermanentresidence.HeiscurrentlyaprofessoranddoctoralsupervisorofEconomicsFacultyofShandongUniversity,theDirectorofInstituteforWorldEconomyStudiesofShandongUniversity,theExecutiveDeputyPresidentofShandongInstituteofDevelopmentofShandongUniversity,amemberofacouncilofChinaSocietyofWorldEconomics,anexecutivememberofacouncilofTheAssociationforCanadianStudiesinChinaandShandongYouthScholarsAssociation,amemberofacouncilofShandongAssociationforBusinessEconomicsandShandongPrice
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
Association.HecurrentlyservesasanindependentdirectorofShandongXinnengTaishanPowerGenerationCo.,Ltd.,anindependentdirectorofWeihaiHuadongAutomationCo.,Ltd.,andanindependentdirectoroftheCompany.Mr.YuRenzhu,male,43,Chinese,doctorofmanagement,high-leveltalentsofJinan,usedtoactastheDeputyDirectorofHuanglongNationalScenicAreaAdministrationinAbaprefectureofSichuanprovinceasamemberofthe18thdoctoralteamoftheCentralOrganizationDepartmentandtheCommunistYouthLeagueofChinaandalsoeveractedasmanagingdirectorofShandongAgriculturalEconomySociety.Currently,heservesasaprofessorandamastersupervisorinSchoolofBusinessAdministrationinShandongUniversityofFinanceandEconomics,themanagingdirectorofChineseMarketingAssociationofUniversitiesandanindependentdirectorofthiscompany.
②MembersofboardofsupervisorsMr.KongQingkun,male,49,Chinese,MBAandeconomist,successivelyservedasasectionmemberofproductiondepartmentinthehealthyliquorbranchoffice,aclerkandtheDeputyDirectorandtheDirectorofgeneralmanageroffice.Ms.ZhangLanlan,female,52,bachelordegreeandeconomist,successivelyservedastheDeputyManageroftheimportandexportbranchoftheCompanyandtheManagerofimportdepartmentoftheCompany.ShenowistheDirectorofboardofdirectors’office.Mr.LiuZhijun,male,41,Chinese,bachelordegree;fromJuly2003toFebruary2019,heusedtoserveasthestaffofworkedinforeignfunddepartmentofEconomyandTradeBureauinLongkouEconomicDevelopmentZone,anewssectionmemberofpropagandadepartmentinLongkouMunicipalCommittee,amemberofpropagandaandmassworksection,amemberofplanningsection,theDeputyDirectorMemberofprogrammingdevelopmentandenterprisedistributionsection,theDeputyDirectorMemberandtheDeputyChiefofprogrammingdevelopmentsection,thesupervisor(sectionchiefrank)oftheDongfangElectronicsCorporationCo.,Ltd.,ShandongLaidongEngineCo.,Ltd.andYantaiPublicTransportationGroupCo.,Ltd.,andasectionchiefrankofYantaiMunicipalAuditBureau;fromMarch2019toJune2020,heservedasthehadoftheequitymanagementdepartmentofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.;fromJune2020topresent,heservesasamemberofthePartyCommittee,thedeputygeneralmanagerandsecretaryoftheboardofdirectorofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.HenowisasupervisoroftheCompany.
③OtherseniorexecutivesMr.JiangHua,male,58,Chinese,withmasterdegree,seniorengineer,hasbeenservingastheDeputyGeneralManageroftheCompanysince14
th
September,2001.Mr.PengBin,male,55,MBA,seniorengineer,eversuccessivelyservedastheDepartmentChiefofTechnicalTransformationDepartmentandtheMinisterofInvestmentandDevelopmentDepartmentaswellastheDeputyGeneralManagerofYantaiChangyuGroupCo.,Ltd.andtheGeneralManagerAssistantofYantaiChangyuGroupCo.,Ltd..HecurrentlyservesastheDeputyGeneralManageroftheCompany.Mr.JiangJianxun,male,55,Chinese,MBAandaccountant,servedastheFinancialManageroftheCompanyfrom20
th
May,2002to10
th
January,2018.HeservesastheDeputyGeneralManagerandBoardSecretaryoftheCompany.Mr.PanJianfu,male,Hanethnic,Chinese,46,MBAandsenioreconomist,usedtoserveastheGeneralManageroftheJiangxiBranchoftheCompany,theGeneralManageroftheShanghai
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
marketingmanagementcompanyandtheGeneralManagerofBeijingmarketingmanagementcenter.Currently,heistheGeneralManagerAssistantoftheCompanyandtheGeneralManagerofBeijingmarketingmanagementcenterandBeijingChateauAFIP.Mr.LiuShilu,male,Hanethnic,Chinese,47,masterdegree,usedtobetheManagerofTianjinbranchoftheCompany,theCompetenceManagerofNorthChinamarket,theGeneralMangerofBeijingmarketingmanagementcompany,theGeneralManagerofGuangdongmarketingmanagementcenterandtheGeneralManagerofe-commercebranchoftheCompany.Currently,heservesastheGeneralManagerAssistanceoftheCompanyandtheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd..Mr.XiaoZhenbo,male,Hanethnic,Chinese,45,MBA,servedastheDeputyManageroftheCompany’smarketstrategydevelopmentcenter,theGeneralManagerofShandongmarketingmanagementcompanyandYantaiChangyuliquorcompany.HecurrentlyservesastheGeneralManagerAssistantoftheCompanyandtheGeneralManagerofZhejiangmarketingmanagementcompany.Postintheshareholder’scompany?Available□Notavailable
Name
| Name | Shareholder’sCompany | Post | Beginningdateofthepost | Endingdateofthepost | Paidbyshareholder’scompanyornot |
| ZhouHongjiang | YantaiChangyuGroupCo.,Ltd. | Chairman | 2018.01.10 | 2026.01.11 | No |
| LengBin | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | Yes |
| LengBin | YantaiChangyuGroupCo.,Ltd. | Generalmanager | 2018.01.10 | 2026.01.11 | Yes |
| SunJian | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| LiJiming | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| ChenDianxin | YantaiChangyuGroupCo.,Ltd. | Director | 2018.11.15 | 2026.01.11 | No |
| AldinoMarzorati | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| EnricoSivieri | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| StefanoBattioni | YantaiChangyuGroupCo.,Ltd. | Director | 2020.04.09 | 2026.01.11 | No |
| ChiangYun | YantaiChangyuGroupCo.,Ltd. | Director | 2020.05.12 | 2026.01.11 | No |
| Explanationforthepostintheshareholder’scompany | Mr.LengBinalsoholdsconcurrentpostastheChairmanandGeneralManagerofYantaiZhongyaMedicalHealthWineCo.,Ltd.,whichisasubsidiaryofYantaiChangyuGroupCo.,Ltd.. | ||||
Postatothercompanies
□Available?NotavailableDisciplinaryactionstakenbysecuritiesregulatorsinrecent3yearstotheCompany’sdirectors,supervisorsandseniormanagementbothonthejobandleftduringthereportperiod?Available□NotAvailableIn2019,theShandongRegulatoryBureauofChinaSecuritiesRegulatoryCommissionissueda“DecisiononMeasurestoIssueWarningLetterstoMr.ZhouHongjiangandMr.QuWeimin”,butitdidnotimposeadministrativepenaltyonMr.ZhouHongjiangandMr.QuWeimin.
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
(3)Salaryofdirectors,supervisorsandseniorexecutivesThesituationofdecision-makingprocess,thebasisofdeterminationandtheactualpaymentofdirectors,supervisorsandseniorexecutivesThesalaryfortheindependentdirectorsispaidaccordingtotheresolutionofshareholders’meeting.Thesalaryforthechairman,directorswithadministrationduty,supervisors,managersandotherseniormanagementshouldbepaidonbasisoftheevaluationresultaccordingtotheYantaiChangyuPioneerWineCo.,Ltd.ExecutiveCompensationandPerformanceDesign,whichwaspassedduringtheBoardofDirectors’meeting.Salaryofdirectors,supervisorsandseniorexecutivesduringthereportperiod
Unit:CNY’0000
Name
| Name | Post | Gender | Age | Status | TotalrewardfromtheCompanybeforetax | WhethergetrewardfromrelatedpartiesoftheCompany |
| ZhouHongjiang | Chairman | M | 57 | Incumbent | 176.42 | No |
| LengBin | Director | M | 59 | Incumbent | 0 | Yes |
| SunJian | DirectorandGeneralManager | M | 55 | Incumbent | 160.38 | No |
| LiJiming | DirectorandDeputyGeneralManager | M | 55 | Incumbent | 122.17 | No |
| ChenDianxin | Director | F | 55 | Incumbent | 0 | No |
| AldinoMarzorati | Director | M | 69 | Incumbent | 0 | No |
| StefanoBattioni | Director | M | 63 | Incumbent | 0 | No |
| EnricoSivieri | Director | M | 53 | Incumbent | 0 | No |
| ChiangYun | Director | F | 54 | Incumbent | 0 | No |
| LuoFei | IndependentDirector | M | 69 | Incumbent | 8 | No |
| DuanChangqing | IndependentDirector | M | 57 | Incumbent | 8 | No |
| LiuHuirong | IndependentDirector | F | 58 | Incumbent | 8 | No |
| LiuQinglin | IndependentDirector | M | 58 | Incumbent | 8 | No |
| YuRenzhu | IndependentDirector | M | 43 | Incumbent | 8 | No |
| KongQingkun | ChairmanoftheBoardofSupervisors | M | 49 | Incumbent | 80.69 | No |
| ZhangLanlan | Supervisor | F | 52 | Incumbent | 19.38 | No |
| LiuZhijun | Supervisor | M | 41 | Incumbent | 0 | No |
| JiangHua | DeputyGeneralManager | M | 58 | Incumbent | 120.79 | No |
| PengBin | DeputyGeneralManager | M | 55 | Incumbent | 121.58 | No |
| JiangJianxun | DeputyGeneralManagerandBoardSecretary | M | 55 | Incumbent | 113.39 | No |
| PanJianfu | GeneralManagerAssistant | M | 46 | Incumbent | 69.96 | No |
| LiuShilu | GeneralManagerAssistant | M | 47 | Incumbent | 80.19 | No |
| XiaoZhenbo | GeneralManagerAssistant | M | 45 | Incumbent | 70.48 | No |
| Total | -- | -- | -- | -- | 1,175.43 | -- |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
6.Performanceofdirectorsduringthereportperiod
(1)Thesituationoftheboardofdirectors’meetingsduringthisreportingperiod
Thesessionofmeetings
| Thesessionofmeetings | Holdingdate | Disclosuredate | Meetingresolution |
| TheEighthSessionBoardofDirectors7thMeeting | 2021.04.26 | 2021.04.28 | Themeetingdeliberatedandapproved2020AnnualBoardofDirectors’WorkReport,2020AnnualGeneralManager’sWorkReport,2020AnnualReport,Proposalon2020AnnualPerformanceAssessmentResultoftheCompany’sSeniorExecutives,DraftProposalon2020AnnualProfitDistribution,2020AnnualSelfAssessmentReportonInternalControl,2020AnnualSocialResponsibilityReport,ProposalonRelevantIssuesofConvening2020AnnualShareholders’Meeting,Proposalon2021AnnualFinancialBudget,Proposalon2021AnnualCapitalExpenditurePlan,Proposalon2021AnnualRoutineRelatedTransaction,ProposalonChangeinAccountingPolicyandProposalonAppointingCertifiedPublicAccountantsFirm. |
| TheEighthSessionBoardofDirectors8thMeeting | 2021.04.28 | 2021.04.29 | Themeetingdeliberatedandapproved2021FirstQuarterReport. |
| TheEighthSessionBoardofDirectors9thMeeting | 2021.08.24 | 2021.08.26 | Themeetingdeliberatedandapproved2021Semi-AnnualReportandProposalon2021Semi-AnnualProfitDistribution. |
| TheEighthSessionBoardofDirectors10thMeeting | 2021.10.26 | 2021.10.28 | Themeetingdeliberatedandapproved2021ThirdQuarterReport. |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
(2)Attendanceofdirectorsfortheboardofdirectors’andtheshareholders’meetings
Attendanceofdirectorsfortheboardofdirectors
| Attendanceofdirectorsfortheboardofdirectors | |||||||
| Name | Requiredattendancetime | Personalattendance | Communicationattendance | Authorizedattendance | Absence | Whetherornottoattendthemeetingspersonallyforsuccessivetwice | Attendancetimefortheshareholders’meeting |
| ZhouHongjiang | 4 | 2 | 2 | No | 1 | ||
| LengBin | 4 | 2 | 2 | No | 1 | ||
| SunJian | 4 | 2 | 2 | No | 1 | ||
| LiJiming | 4 | 2 | 2 | No | 1 | ||
| ChenDianxin | 4 | 2 | 2 | No | 1 | ||
| AldinoMarzorati | 4 | 2 | 2 | No | 0 | ||
| StefanoBattioni | 4 | 2 | 2 | No | 0 | ||
| EnricoSivieri | 4 | 2 | 2 | No | 0 | ||
| ChiangYun | 4 | 2 | 2 | No | 0 | ||
| LuoFei | 4 | 2 | 2 | No | 0 | ||
| DuanChangqing | 4 | 2 | 2 | No | 0 | ||
| LiuHuirong | 4 | 2 | 2 | No | 0 | ||
| LiuQinglin | 4 | 2 | 2 | No | 0 | ||
| YuRenzhu | 4 | 2 | 2 | No | 0 | ||
ExplanationforfailedtopersonallyattendtheBoardofDirectors’meetingsforsuccessivetwotimesDuringthereportperiod,therewerenodirectorswhodidnotattendtheshareholders’meetingsinpersonfortwoconsecutivetimes.
(3)AnyobjectionsfortheCompany’sprojectsfromthedirectorsWhetherornotthedirectorsraisedanyobjectionfortheCompany’sprojects
□Yes?NoDuringthereportperiod,thedirectorsdidnotraiseanyobjectionsfortheCompany’sprojects.
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
(4)Otherexplanationsondirectors’performanceWhetherornotthedirectors’propositionsareacceptedbytheCompany?Yes□NoExplanationonacceptanceorrefusaloftheindependentdirectors’propositionstotheCompanySomedirectorsproposedtoincreaseinvestmentinthemarket,andtheCompanyhadadoptedrelevantsuggestionsandincreasedinvestmentinmarketingduringthereportingperiod.
7.PerformanceofthespecialcommitteesundertheBoardofDirectorsduringthereportperiod
Committeesname
| Committeesname | Members | Numbersofmeetingheld | Helddate | Meetingcontents | Importantcommentsandsuggestionsmade | Otherperformanceofduties | Specificcircumstancesoftheobjection(ifhave) |
| AuditingCommittee | Luofei,DuanChangqing,LiuHuirong,LiuQinglin,YuRenzhu,ChenDianxin,LengBin,EnricoSivieri | 2 | 2021.04.26 | Themeetingdeliberatedandapprovedthe2020AnnualReport,DraftProposalon2020AnnualProfitDistribution,ProposalonAppointingCertifiedPublicAccountantsFirm,2020AnnualSelfAssessmentReportonInternalControl,2021AnnualInternalAuditPlan.Allthecommitteemembersunanimouslyagreedtosubmittheaboveproposalstotheboardofdirectorsofthecompanyfordeliberation. | Duringthereportingperiod,themembersoftheAuditCommitteeprovidedadviceandsuggestionsinguidingtheinternalauditwork,supervisingandevaluatingexternalauditinstitutions,establishinganeffectiveinternalcontrolsystemandpromptingmajorbusinessrisks,andactivelysafeguardedtheinterestsofthecompanyandallshareholders. | No | No |
| 2021.08.24 | Themeetingdeliberatedandapprovedthe2021Semi-AnnualReportandProposalon2021Semi-AnnualProfitDistribution. | No | No | ||||
| EmolumentCommittee | Luofei,DuanChangqing,LiuHuirong,Liu | 1 | 2021.04.26 | ThemeetingdeliberatedandapprovedtheProposalon2020AnnualPerformanceAssessmentResultsoftheCompany’s | Duringthereportingperiod,theEmolumentCommitteeputforwardrelevantsuggestionsonfurther | No | No |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
Qinglin,YuRenzhu,ChiangYun,LengBin,AldinoMarzorati
| Qinglin,YuRenzhu,ChiangYun,LengBin,AldinoMarzorati | SeniorExecutives. | strengtheningtheperformanceassessmentofseniorexecutivesandimprovingthewayofremuneration. |
8.TheworkoftheBoardofSupervisorsWhetherornottheBoardofSupervisorsfoundanyexistencerisktotheCompanyinoversightactivitiesduringthereportperiod
□Yes?NoTheBoardofSupervisorshasnoobjectionstosupervisionmattersduringthereportperiod.
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
9.StaffoftheCompany
(1)Staffnumber,specialtyconstitutionandeducationdegree
Incumbentstaffnumberofparentcompanyattheendofreportingperiod(people)
| Incumbentstaffnumberofparentcompanyattheendofreportingperiod(people) | 1,131 |
| Incumbentstaffnumberofmajorsubsidiarycompaniesattheendofreportingperiod(people) | 1,166 |
| Totalincumbentstaffattheendofreportingperiod(people) | 2,297 |
| Totalstaffgettingpaidincurrentperiod(people) | 2,297 |
| Retiredstaffnumberwhoseexpensesareundertakenbyparentcompanyorsubsidiarycompanies(people) | 0 |
| Specialtyconstitution | |
| Category | Numberofpeople(people) |
| Productionstaff | 742 |
| Salesstaff | 1,091 |
| Technicalstaff | 149 |
| Financialstaff | 119 |
| Administrativestaff | 196 |
| Total | 2,297 |
| Educationdegree | |
| Category | Number(People) |
| Postgraduateandabove | 86 |
| Bachelor | 819 |
| JuniorCollege | 691 |
| TechnicalsecondaryschoolorSeniorhighschool | 475 |
| Juniorhighschoolandbelow | 226 |
| Total | 2,297 |
(2)RemunerationpolicyTheCompanyhasestablishedandimprovedtheremunerationandwelfaresystem,includingsalarysystem,incentivemechanism,socialsecurityandmedicalinsuranceandsoon,toensuretheparticipationofallemployees.Inaccordancewiththelaw,theCompanypurchasessocialendowmentinsurance,medicalinsurance,occupationalinjuryinsurance,unemploymentinsuranceandmaternityinsurance,andpayshousingfundfortheemployees.Basedontheprincipleof“distributionaccordingtoworkandequalpayforequalwork”,theCompanypaysthestaff’sremunerationtimely.WiththeimprovementoftheCompany’sprofitability,theCompanysteadilyimprovesthestaff’sremunerationandwelfare,andprovidesitsemployeesthecompetitivesalaryandequalopportunityfordevelopment.
(3)Trainingplan
①SeniorandMiddle-levelManagers
1)Generaltraining
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
Choosetrainingtopicsrelatedtothecompanyindustrydevelopment,managementdirectionandmanagementconceptinordertoexploitstrategicthinkingofseniorandmiddle-leveladministrativestaff,promotingoperationprinciple,andimprovescientificdecision-makingabilityandmanagementability.Holdmeetingsinsteadoftraining,learnnationalandlocalpolicy,analyzedomesticandforeignpoliticalsituationandeconomicsituation,studyandunderstandtheinfluenceofrelatedpoliciesandregulationsinthecompany’sdevelopment,analyzethedevelopmenttrendofproduction,technology,managementandmarketingindomesticandforeignindustries.
2)ProfessionaltrainingBasedontheirrespectivework,organizethemtoattendEntrepreneurHigh-endForumandSummitMeetingandgotodomesticandforeignsuccessfulenterpriseforvisitandstudy.Encouragemiddle-leveladministrativestafftoattenduniversitycorrespondence,self-studyexamination,MBAorotherfurthereducationformasterdegree;organizeprofessionalmanagementcadres,involvedinhumanresources,finance,facility,safetyandtechnologyqualityetc.,toattendvocationalqualificationexaminationforprofessionalcertificate.Attendspecialtrainingsuchassafety,humanresource,law,technology,facility,financeandtourismetc.,whichareorganizedbyspecialmanagementdepartment.
②AdministrativeStaffinProduction,TourismandAdministrativeSystemsWhoseLevelareorBelowSectionChief
1)GeneraltrainingHireaprofessionallectureroruniversityteachertoteachcoursesthatareaimingatimprovingemployeemanagementability,innovationabilityandexecutiveabilityatthecompany.Attendcommon-sensegeneraltrainingincludingcompanyculture,regulatoryframeworkandvariousliquorproductsknowledge,reinforcetrainingintheaspectofhumanresourcemanagementandsafetyproduction.Organizeemployeetoattendoutdoorqualityexpansiontraininginordertoimproveadministrativestaffphysicalqualityandteamworkability.
2)ProfessionaltrainingEncourageeligiblegeneraladministrativestafftoattenduniversitycorrespondence,self-studyexamination,MBAorotherfurthereducationformasterdegree;organizeprofessionaladministrativestaff,involvedinhumanresources,finance,facility,safetyandtechnologyqualityetc.,toattendvocationalqualificationexaminationforprofessionalcertificate.Basedonpersonnelwork,attendingspecialtrainingsuchassafety,technology,facility,finance,humanresource,legal,tourism,salesandintegratedmanagementetc.,whichareorganizedbyspecialmanagementdepartment.
③Front-lineWorkersinProductionandTourismSystem
1)GeneraltrainingAttendcommon-sensegeneraltrainingincludingcompanyculture,regulatoryframeworkandvariousliquorproductsknowledge;reinforcetrainingintheaspectofhumanresourcesmanagement.
2)ProfessionaltrainingForspecialtypesofwork,organizetoattendtrainingwhichcanimproveprofessionalskillandoperationlevel.Organizejobskillcompetitionstopopularizeprofessionalknowledgeandsafetyknowledgeofdifferentpositionstorelevantemployeesthroughedutainment.
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
Attendspecialtrainingsuchassafety,technology,facility,comprehensivemanagementetc.,whichareorganizedbythecompany.
④MarketingPersonnel
1)GeneraltrainingIndependentlystudymarketingtextbooks,mainlyfocusingon‘Growth’,aswellastrainingmaterialsincludingthecompany’srelatedmanagementsystem,productionknowledge,salesresponsibilitysystemetc..
2)ProfessionaltrainingProfessionallecturerswouldbeemployedtothecompanyorthroughremoteinternetvideostogivelecturesaboutsuccessfulliquorcases,currenteconomictrendresearchfordomesticandforeignwineindustryandothertopics.Strengthenthetrainingforcitymarketingmanagers.Recruitlecturerswithprofessionalwineknowledgetoprovideprofessionalwineknowledge,tastingknowledgeandwinetastingetiquettetrainingtothecompany’sinternalmanagementandsalesstaffs.Forbusinessdirectorsandotherpersonnel,eachmarketingmanagementcompanyshouldconveneallmarketingpersonneltocarryoutmarketingtrainingandsharingthroughmonthlyvideoconferences,onlinesharing,WeChatinteraction,on-sitemeetings,etc.,soastomakeprogresstogether.
⑤NewEntryUniversityStudentsSeniorandmiddle-leveladministrativestaffinthecompanywouldbeinvitedtotrainundergraduateforenterpriseculture,regulatoryframework,safetyproduction,productquality,marketingstrategy,emolumentandevaluationsystemandsooninorderfortheseundergraduatetounderstandthecompany’sconditionsintheshortesttime.Professionallecturerswouldbeemployedtoconductexteriortrainingcoursestoundergraduate,suchasroletransition,workplaceetiquetteandteamcooperationandsoon.
(4)Laboroutsourcing?Available?Notavailable
10.TheCompany’sprofitdistributionandincreasingequitywithcapitalreserveProfitdistributionpoliciesespeciallypromulgation,implementationoradjustmentofcashdividendspoliciesduringthereportperiod?Available□NotavailableDeliberatedandpassedbythe2020AnnualShareholders’MeetingconvenedonMay27
th,2021bytheCompany,theCompany’s2020annualprofitdistributionschemeisshownasfollows:basedontotal685,464,000shares(including453,460,800Asharesand232,003,200Bshares)uptoDecember31
st
,2020,theCompanywouldpaycashdividendtoallshareholdersregisteredontheshareregistrationday:CNY4（includingtax）incashpertenshares.ThistimetheCompanywouldneitherdispatchbonussharesnorincreaseequitywithcapitalreserve.Totalamountofshareshasnotchangedsincethedisclosureofthedistributionplantotheimplementationperiod.OnJuly6
th
,2021,theCompanypublishedtheImplementationAnnouncementof2020AnnualEquityDistributiononChinaSecuritiesJournal,SecuritiesTimesandwww.cninfo.com.cn,
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
determiningthattheshareregistrationdayandtheex-dividenddayofASharewasrespectivelyonJuly12
th,2021andonJuly13
th,2021;thelasttradingday,theex-dividenddayandtheshareregistrationdayofBSharewasrespectivelyonJuly12
th
,2021,onJuly13
th
,2021andonJuly15
th,2021.ThistimethedispatchingobjectscontainallAShareshareholdersregisteredatChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenCompany(hereinafterreferredtoasCSDCShenzhenCompany)afterclosingofShenzhenStockExchangeintheafternoonofJuly12
th
,2021andallBShareshareholdersregisteredatCSDCShenzhenCompanyafterclosingofShenzhenStockExchangeintheafternoonofJuly15
th
,2021(thelasttradingdayisJuly12
th
,2021).Thisdispatchinghasalreadybeencompletedinmid-July2021.Theprofitdistributionschemeimplementedthistimeisconsistentwiththeschemedeliberatedandpassedbytheshareholders’meeting.Theimplementationoftheprofitdistributionschemeforthistimeisnotmorethantwomonthsaftertheshareholders'meetingpassingit.
Specialexplanationforthecashdividendspolicy
| Specialexplanationforthecashdividendspolicy | |
| WhetheritisinaccordancewiththerequirementsoftheregulationintheArticlesofAssociationandtheresolutionofshareholders’meeting | Yes |
| Whetherthedistributionstandardandproportionisclearanddefinite | Yes |
| Whethertherelevantdecisionprocessandmechanismiscomplete | Yes |
| Whethertheindependentdirectorsperformtheirresponsibilitiesandplaytheroles | Yes |
| Whetherthesmallandmiddleshareholdershavethechancetoexpresstheiropinionsandappeals,aswellastheirlawfulrightandinterestisinanenoughprotection | Yes |
| Whetheritislegalandtransparentfortheconditionandprocesswhileadjustingandamendingthecashdividendspolicy | Yes |
Duringthereportperiod,theCompanyearnedprofit,theprofitoftheparentcompanythatcouldbedistributedtoshareholderswaspositivebutwithoutproposingcashdividenddistributionpreliminaryscheme.
□Available?NotavailableTheCompany’spreliminaryschemeofprofitdistributionandpreliminaryschemeofincreasingequitywithcapitalreserveforthereportperiod?Available□Notavailable
| Numberofsendingbonussharespertenshares(share) | 0 |
| Numberofdividendpayoutpertenshares(CNY)(includingtax) | 4.50 |
| Thecardinalnumberofthecapitalstocksforthepreliminarydistributionscheme(share) | 685,464,000 |
| Totalcashdividenddistribution（CNY）(includingtax) | 308,458,800 |
| Amountofcashdividends(eg.sharesbuy-back)（CNY）inotherways | 0 |
| Totalcashdividenddistribution（CNY）(includingotherways) | 308,458,800 |
| Attributableprofit（CNY） | 500,126,606 |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
Theproportionofcashdividenddistributioninthetotalprofitdistribution(includingotherways)
| Theproportionofcashdividenddistributioninthetotalprofitdistribution(includingotherways) | 100 | ||||
| Cashdividenddistributionthistime | |||||
| IftheCompany’sdevelopmentisingrowthstageandmajorcapitalexpenditureisarranged,whilemakingprofitdistribution,theproportionofcashdividendsshouldtakesupnolessthan20%inthisprofitdistribution. | |||||
| Detailedexplanationforthepreliminaryschemeofprofitdistributionorincreasingequitywithcapitalreserve | |||||
| Accordingtoregulationof157thitemintheArticlesofAssociation,whichisthat“theCompanycandistributedividendseitherincashorbystock,theprofittobedistributedeachyearisnotlessthan25%ofthedistributableprofitrealizedinthesameyearandtheaccumulatedsumofprofittobedistributedincashinthelastthreeyearsisnotlessthan30%oftheyearlyaveragedistributableprofittoberealizedinthelastthreeyears”.Meanwhile,consideringthelargeamountonthecapitalexpenditurein2022,undertheconditionofnotinfluencingthenormalproductionandoperation,theCompanyputforwardpreliminaryschemeonprofitdistributionin2021asfollowing:Becausetheleftamountoflegalearnedsurplusreservereaches50%ofregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewillnotbedrawn.BasedontheCompany’s685,464,000sharesattotaluptoDecember31st,2021,theCompanyplanstopayCNY4.5incashasdividendsforeverytenshare(includingtax)totheCompany’sallshareholders,totalinguptoCNY308,458,800.Theretainedandundistributednetprofitwillbereservedfordistributioninthenextyear.Thecashdividenddistributedtoshareholdersofdomesticlistedforeignshares(Bshare)ispaidinHKDconvertedbasedonthemiddleratebetweenCNYandHKDissuedbythePeople’sBankofChinaonthefirstworkingdayaftertheresolutiondateof2021shareholders’meeting. | |||||
11.ImplementationoftheCompany’sequityinventiveplan,employeestockownershipplanorotheremployeeincentivemeasures
□Available?NotavailableTherearenoimplementationoftheCompany’sequityinventiveplan,employeestockownershipplanandotheremployeeincentivemeasuresduringthereportperiod.
12.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod
(1)ConstructionandimplementationofinternalcontrolFortheconstructionandimplementationofthecompany’sinternalcontrol,pleaserefertothe2021AnnualSelf-AssessmentReportonInternalControldisclosedinSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnonApril27,2022.
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
(2)Specificsituationsforsignificantdefectsoftheinternalcontrolfoundduringthereportperiod
□Yes?No
13.Thecompany’smanagementandcontroloversubsidiariesduringthereportingperiod
Companyname
| Companyname | Integrationplan | Integrationprogress | Problemsencounteredinintegration | Actionstaken | Resolveprogress | Follow-upresolutionplan |
| None | None | None | None | None | None | None |
14.Internalcontrolself-assessmentreportorinternalcontrolauditreport
（1）Internalcontrolself-assessmentreport
| Disclosuredateforfulltextoftheinternalcontrolself-assessmentreport | 2022.04.27 | ||
| Disclosureindexforfulltextoftheinternalcontrolself-assessmentreport | 2021AnnualSelf-AssessmentReportonInternalControldisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril27,2022 | ||
| PercentageoftotalunitassetsincludedinscopeoftheassessmentaccountingfortheCompany’stotalassetsofconsolidatedfinancialstatements | 85.13% | ||
| PercentageofunitoperatingincomeincludedinscopeoftheassessmentaccountingfortheCompany’soperatingincomeofconsolidatedfinancialstatements | 92.54% | ||
| StandardsofDefectIdentification | |||
| Category | Financialreport | Non-financialreport | |
| Qualitativecriteria | Significantdefects:onedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport.Forexample:?Company’sDirectors,SupervisorsandSeniorManagementhavefraudulentpractices;?TheCompanymakescorrectionsforthepublishedfinancialreport;?Theauditofexternalintermediaryagentfindssignificantmisstatementexistinginthecurrentfinancialreport,buttheCompanydoesnot | Significantdefects:Anysituationslistedbelowappears,itcanberegardedassignificantdefects.?Operation:Unabletoachievealloperationtargetorkeybusinessindex,widelyoutofbudgetinvariousaspects.?Safetyaccidenteffects:Causenolessthanonepersondeath,ormorethan3personseriousinjuries.?Majornegativeeffects:Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescopeintheinternationalandnational | |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
realizeitduringtheoperationprocess;?Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescope;?TheCompany’sauditcommitteeandinternalauditdepartmentmakesaninefficientsupervisionforinternalcontrol;?Othersituationsmaybecausesignificantmisdirectionwhichguidesthereportuserstomaketherightjudgment.Majordefects：Thedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport,althoughthemisstatementsneitherachievesnorexceedstheimportancelevelbutstillarisingtheattentionofBoardofDirectorsandmanagementteam.?Failuretoselectandapplyaccountingregulationsinaccordancewithgenerallyacceptedaccountingprinciples;?Failuretoestablishtheanti-fraudproceduresandcontrolmeasures;?Failuretosetupcorrespondingcontrolmechanismortocarryoutandtakecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects.
| realizeitduringtheoperationprocess;?Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescope;?TheCompany’sauditcommitteeandinternalauditdepartmentmakesaninefficientsupervisionforinternalcontrol;?Othersituationsmaybecausesignificantmisdirectionwhichguidesthereportuserstomaketherightjudgment.Majordefects：Thedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport,althoughthemisstatementsneitherachievesnorexceedstheimportancelevelbutstillarisingtheattentionofBoardofDirectorsandmanagementteam.?Failuretoselectandapplyaccountingregulationsinaccordancewithgenerallyacceptedaccountingprinciples;?Failuretoestablishtheanti-fraudproceduresandcontrolmeasures;?Failuretosetupcorrespondingcontrolmechanismortocarryoutandtakecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects. | mainstreammedia.?Environmenteffects:Createirreparabledamagestoenvironment,andcausemassivepubliccomplains.Majordefects:Anysituationslistedbelowappears,itcanberegardedasmajordefects.?Operation:Unabletoachievepartlyoperationtarget,abigmarginoutofbudgetinvariousaspects.?Safetyaccidenteffects:Withoutreachingthepersonlossorthenumberofseriousinjuryofsignificantdefects.?Majornegativeeffects:Negativenewsappearsinthemediawithinfluencingawidescopeintheprovincialmainstreammedia.?Environmenteffects:Causeheavyenvironmentdamagesandmassivepubliccomplains,oughttocarryoutthesignificantremedialmeasures.Generaldefects:Anysituationslistedbelowappears,itcanberegardedasgeneraldefects.?Operation:Othereffectsunabletoconstitutethesignificantdefectsormajordefects.?Safetyaccidenteffects:Personalinjurylessthanthequantitativestandardsofmajordefects.?Majornegativeeffects:Otherdefectsunabletoconstitutethesignificantdefectsormajordefects.?Environmenteffects:Otherenvironmenteffectsunabletoconstitutethesignificantdefectsormajordefects. | |
| Quantitativecriterion | Fortotalassets/Owner’sequity:?Significantdefects:misstatements≧1%,or?Majordefects:0.5%≦misstatements<1%,or?Generaldefects:misstatements<0.5%Foroperationrevenue:?significantdefects:misstatements≧1%,or?Majordefects:0.5%≦misstatements<1%,or?Generaldefects:misstatements<0.5%Forpretaxprofit:?Significantdefects:misstatements≧5%,or | Fordirectpropertyloss:?Significantdefects:MorethanCNY10million?Majordefects:CNY1million-CNY10million(includingCNY1million)?Generaldefects:LessthanCNY1million |
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
?Majordefects:2%≦misstatements<5%,or?Generaldefects:misstatements<2%
| ?Majordefects:2%≦misstatements<5%,or?Generaldefects:misstatements<2% | ||
| Numberofmajordefectinfinancialreport | 0 | |
| Numberofmajordefectinnon-financialreport | 0 | |
| Numberofsignificantdefectinfinancialreport | 0 | |
| Numberofsignificantdefectinnon-financialreport | 0 | |
(2)Internalcontrolauditreport?Available□Notavailable
| Auditopinionsoftheinternalcontrolauditreport | |
| Webelievethat,thecompanymaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialaspectsinaccordancewiththeBasicNormsforCorporateInternalControlandrelatedregulationsonDecember31st,2021. | |
| Disclosureoftheinternalcontrolauditreport | Disclosure |
| Disclosuredateforthefulltextoftheinternalcontrolauditreport | 2022.04.27 |
| Disclosureindexforthefulltextoftheinternalcontrolauditreport | 2021AnnualSelf-AssessmentReportonInternalControldisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril27,2022. |
| Opiniontypeoftheinternalcontrolauditreport | Standardwithoutreservedopinion |
| Whetherornotexistssignificantdefectsinnon-financialreports | No |
Whetherornottheaccountingfirmissuednon-standardopinionsfortheauditreportofinternalcontrol
□Yes?NoWhethertheauditreportofinternalcontrolissuedbytheaccountingfirmisinconsistencywiththeself-assessmentreportoftheboardofdirectors?Yes?No
15.Self-inspectionandrectificationofproblemsinthespecialactionongovernanceoflistedcompanyNo.
YantaiChangyuPioneerWineCo.Ltd.2021AnnualReport
V.EnvironmentalandSocialResponsibility
1.MajorEnvironmentalissuesWhetherthelistedcompanyanditssubsidiariesbelongtomajorpolluterspublishedbytheenvironmentalprotectiondepartment?Yes?No
Nameofcompanyorsubsidiary
| Nameofcompanyorsubsidiary | Nameofmajorpollutantsandparticularpollutants | Modeofdischarge | Quantityofdischargeoutlet | Distributionsituationofdischargeoutlet | Dischargeconcentration | Implementedpollutiondischargestandard | Totalvolumeofdischarge | Totalapprovedvolumeofdischarge | Conditionofexcessivedischarge |
| LiaoningChangyuIcewineChateauCo.,Ltd. | Organizedexhaustgas,inorganizedexhaustgas,wasterwater,noise | Dischargeoutletofboilerchimneyanddischargeoutletoffactorywastewater | 2 | ConfirmedinlinewithnationalstandardGraphicalSignsforEnvironmentalProtection(GB15562.1-1995)(GB15562.2-1995) | Meetingthenationalstandards | EmissionStandardforAirPollutantsofBoiler(GB13271-2014),EmissionStandardforOdorPollutants(GB14554-93),4ainClass2ofEmissionStandardforEnvironmentalNoiseattheBoundaryofIndustrialEnterprises(GB12348-2008),ComprehensiveWastewaterDischargeStandardofLiaoningProvince(DB21/1627-2008) | 35m3/d | 120m3/d | No |
ConstructionandoperationofpollutionpreventionfacilitiesTheexhaustgas,SO
andNOXproducedbythiscompany'sboileraredischargedthroughceramictubedustremoversandbagdustremovers.Awastewatertreatmentstationhasbeenconstructed.Thewastewatertreatmentprocessadoptsthetreatmentprocessofhydrolysisaerobiont.Productionwastewateranddomesticsewagearetreatedbythein-plantwastewatertreatmentstationandthendischargedintothewastewatertreatmentplantinBeidianzixiangTown.EnvironmentalimpactassessmentofconstructionprojectsandotherenvironmentalprotectionadministrativepermitsIthasbeenapprovedintheHuanhuanjianzi(2016)No.24issuedbytheEnvironmentalProtectionBureauofHuanrenManchuAutonomousCounty.EmergencyplanforemergentenvironmentalincidentTheCompanyhasformulatedacomprehensiveemergencyplanforemergentenvironmentalincident.Environmentalself-monitoringprogramTheCompanyhasformulatedacompleteenvironmentalself-monitoringprogram.Administrativepenaltiesforenvironmentalissuesduringthereportingperiod
Companyor
subsidiaryname
| Companyorsubsidiaryname | Reasonforpenalty | Violation | Penaltyresult | Theimpactontheproductionandoperationoflistedcompanies | Thecompany’srectificationmeasures |
| None | None | None | None | None | None |
OtherenvironmentalinformationthatshouldbemadepublicNoMeasurestakentoreducecarbonemissionsandtheireffectsduringthereportingperiod?Available?NotavailableOtherrelatedenvironmentalinformationNo
2.SocialresponsibilityperformancePleasereferto2021AnnualSocialResponsibilityReportdisclosedonSecuritiesTimes,ChinaSecuritiesNewspaperandwww.cninfo.com.cnbytheCompany.
3.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationTheCompanyactivelyrespondstothecallofthestate,servedtheruralrevitalizationwell,adoptedthemodeof“company+farmer”or“company+cooperative+farmer”,reformedtheslopingfieldsofJiaodongPeninsularandthenorthwesternareaincludingNingxiaandXinjiangandsoon,theuncultivatedlandorthebarrenlandintograperies.Bymeansofprovidingcapitalandtechnologyof
viticulturetofruitgrowers,scientificmanagementlevelofvineyardhadbeenimproved.TheCompanysparednoefforttopopularizethenon-pollutionandmechanizedplantingmethods,continuouslyimprovedproductionefficiencyofgrapebaseandqualityofgrape,andreducedproductioncostofgrapeandlaborintensity.Throughtheabovemeasures,ontheonehand,itpromotestheeffectiveuseoflandresourcesandimprovethelocalecologicalenvironment;ontheotherhand,itbringsaboutCNY800millionofeconomicincometofruitfarmersacrossthecountryeveryyearandpracticallyhelpsruralrevitalizationandcommonprosperity.TheCompanyconductedpoint-to-pointanti-povertyprojecttoHuangchengyangVillageinShiliang,LongkouandpurchasedagriculturalproductsworthmorethanCNY570thousand,tohelpsolvetheproblemofslowsales;throughthecharityfoundation,donatedCNY300thousandincashtoWushaninChongqingforpovertyalleviation.
VI.Majorissues
1.Implementationofcommitments
(1)CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirersandtheCompanyandotherrelatedcommitmentpartieshaveimplementedduringthereportperiodandhavenotimplementeduptotheendofthereportperiod?Available□Notavailable
Commitments
| Commitments | Commitmentparty | Commitmenttype | Commitmentcontent | Commitmenttime | Commitmentperiod | Implementation |
| Commitmentsatsharereform | ||||||
| Commitmentsmadeinacquisitionreportorequitychangesreport | ||||||
| Commitmentsatassetrestructuring | ||||||
| YantaiChangyuGroupCo.,Ltd. | Solvehorizontalcompetition | Non-horizontalcompetition | 1997.05.18 | Forever | Hasbeenperforming |
Commitmentsattheinitialpublicofferingorrefinancing
| Commitmentsattheinitialpublicofferingorrefinancing | YantaiChangyuGroupCo.,Ltd. | Cleartheuseoftrademarkroyalty | AccordingtoTrademarkLicenseContract,thetrademarkroyaltyofChangyuandothertrademarkspaidbytheCompanytoYantaiChangyuGroupCo.,Ltd.everyyearismainlyusedforadvertisingChangyuandothertrademarksandthiscontractproductsbyYantaiChangyuGroupCo.,Ltd. | 1997.05.18 | 1997.05.18-2019.04.04 | AccordingtoTrademarkLicenseContract,thetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksincludingChangyuandcontractproducts.Except2013to2017duringwhichthecommitmentwasnotstrictlyperformed,YantaiChangyuGroupCo.,Ltd.hasbeenperformingitscommitment. |
| Equityincentivecommitments | ||||||
| CommitmentsatmiddleandsmallshareholdersoftheCompany | YantaiChangyuGroupCo.,Ltd. | Compensatingunredeemedcommitment | TheCNY231,768,615thatwasnotusedforpublicityoftrademarksandcontractproductsaspromisedwillbeoffsetbythefour-yeartrademarkusefeefrom2019to2022.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence. | 2019.04.04 | 2019.04.04-2023.12.31 | Hasbeenperforming |
| Commitmentundertimelyimplementationornot | Yes | |||||
| Whetherornottohavespecificreasonsoftheunimplementedcommitmentandnextsteps | AccordingtotheTrademarkLicenseContract(hereafterreferredtoas“theContract”),ChangyuGrouppromisesthatthetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksandcontractproducts.Butabove-mentioned‘mainly’isnotaspecificnumber,whichiseasytocausedivergenceduetodifferentunderstandingandleadstoproblemappearanceduringtheimplementationprocess.From2013to2017,ChangyuGroupcollectedatotalofCNY420,883,902trademarkusefee,ofwhich51%wasusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY214,650,790.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY50,025,181,withabalanceofCNY164,625,609.In2018 | |||||
and2019,thetrademarkusefeecollectedof2017and2018isCNY155,623,907,ofwhich51%isusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY79,368,193.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY12,225,187,withabalanceofCNY67,143,006.From2013to2018,theaccumulatedbalanceofChangyuGroupusingtopublicizetrademarksincludingChangyuandcontractproductsisCNY231,768,615.ChangyuGrouppromisesthatthefour-yeartrademarkusefeefrom2019to2022willbeusedforoffset.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence.IfChangyuGroupisnotabletoimplementtheabove-mentionedcommitmentowingtovariousreasons,theCompanywilltimelysuperviseandurgeChangyuGrouptofulfillitscommitmentandrequestChangyuGrouptoraisefundsthroughbankloaning,assetssalesandequitysalesetc.inordertoimplementthecommitment.Fordetailedinformation,pleaserefertoAnnouncementonCommitmentIssuesofYantaiChangyuGroupCo.,Ltd.disclosedonApril4
th
,2019.
(2)TheCompanyshouldmakeastatementontheachievedoriginalprofitforecastofassetsorprojectsanditsreasonifthereisprofitforecastofCompany’sassetsorprojectsandthereportperiodisstillintheprofitforecastperiod
□Available?Notavailable
2.Non-operatingcapitaloccupyingoflistedcompanybycontrollingshareholderanditsrelatedparties
□Available?NotavailableTherearenonon-operatingcapitalsoccupyingoflistedcompanybycontrollingshareholderanditsrelatedpartiesduringthereportperiod.
3.Illegalexternalguarantee
□Available?NotavailableThereisnoillegalguaranteesituationduringthereportperiod.
4.ExplanationofboardofdirectorsonthelatestNon-standardAuditReport
□Available?Notavailable
5.ExplanationofNon-standardAuditReportgivenbyaccountingfirminthereportperiodfromboardofdirectors,boardofsupervisorsandindependentdirectors(ifhave)
□Available?Notavailable
6.Comparedwiththelastyear’sfinancialreport,explanationofthechangesinaccountingpolicy,accountingestimationorcorrectionofsignificantaccountingerrors?Available?NotavailableThereisnochangesofaccountingpolicy,accountingestimationorcorrectionofsignificantaccountingerrorsduringthereportperiod.
7.Comparedwiththelastyear’sfinancialreport,explanationforthechangesoftheconsolidatedstatementsscope?Available?NotavailableFordetailsofthethechangesoftheconsolidatedstatementsscopethisyear,pleaserefertoNote6:
“Changeinconsolidationscope”tothefinancialreportofthisreport.
8.TheappointmentanddismissalofcertifiedpublicaccountantsCurrentlyappointedaccountingfirm
Domesticaccountingfirmname
| Domesticaccountingfirmname | KPMGHuaZhenLLP |
| Remunerationfordomesticaccountingfirm(CNY‘0000) | 205 |
| Consecutiveperiodfortheauditserviceofdomesticaccountingfirm | 3 |
| Nameofcertifiedpublicaccountantfortheauditserviceofdomesticaccountingfirm | Ms.WangTing,Ms.XuWeiran |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofdomesticaccountingfirm | 3 |
| Overseasaccountingfirmname(ifhave) | — |
| Remunerationforoverseasaccountingfirm(CNY‘0000)(ifhave) | 0 |
| Consecutiveperiodfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Nameofcertifiedpublicaccountantfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofoverseasaccountingfirm(ifhave) | — |
Whetherornottoemployanewaccountingfirmduringthereportperiod?Yes?NoToemployinternalcontrolauditaccountingfirms,financialadviserorsponsor.?Available?NotavailableThisyear,KPMGHuazhenLLPwashiredastheinternalcontrolauditinstitution.Theauditfeewasnotdeterminedseparately,butwasCNY2.05milliontogetherwiththefinancialreportauditfee.
9.Faceofsuspensionandterminationoflistingafterthedisclosureofannualreport?Available?Notavailable
10.Bankruptcyreorganization
□Available?NotavailableThereisnobankruptcyreorganizationduringthereportperiod.
11.Materiallitigationandarbitration
□Available?NotavailableTherearenomateriallitigationandarbitrationduringthereportperiod.
12.Penaltyandrectification?Available?NotavailableTherearenopenaltyandrectificationduringthereportperiod
13.CreditoftheCompany,holdingshareholdersandactualcontrollers
□Available?Notavailable
14.Significantrelatedtransactions
(1)Relatedtransactionsinrelationtodailyoperations?Available□Notavailable
Related
party
| Relatedparty | Relationship | Type | Content | Pricingprinciple | Price | Amount(CNY‘0000) | Proportionaccountingforamountofsimilartransactions | Approvedtransactionquota(CNY‘0000) | Whetherexceedapprovedtransactionquota | Clearingform | Availablemarketpriceofsimilartransactions | Disclosuredate | Disclosureindex |
| YantaiShenmaPackagingCo.,Ltd. | Controlledbythesameparentcompany | Purchaseandcommissionprocessing | Purchaseandcommissionprocessingpackagingmaterials | Agreementpricing | Determinedbyagreement | 8,076 | 14.20% | 10,200 | No | Cash | No | April28th,2021 | Announcementon2021AnnualRoutineRelatedTransactiondisclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFOin2021 |
| Total | -- | -- | 8,076 | -- | 10,200 | -- | -- | -- | -- | -- | |||
| Detailsofthereturnoflargesales | No | ||||||||||||
| Actualperformanceoftheestimatedtotalamountfordailyoperationsrelatedtransactionsbycategorythatwilloccurduringthisperiod.(ifhave) | No | ||||||||||||
| Reasonforthedeferencebetweentransactionpriceandmarketreferenceprice(ifavailable) | Notavailable | ||||||||||||
(2)Relatedtransactionsinrelationtoacquisitionandsalesofassetsorequity?Available?NotavailableThereisnorelatedtransactionsinrelationtoacquisitionorsalesofassetsorequityduringthereportperiod.
(3)Relatedtransactionsinrelationtocommonforeigninvestment?Available?NotavailableThereisnorelatedtransactionsinrelationtocommonforeigninvestmentduringthereportperiod.
(4)Relatedcurrentcreditanddebttransactions?Available□NotavailableWhetherornotexistingnon-operatingrelatedcreditanddebttransactions
□Yes?NoThereisnonon-operatingrelatedcreditanddebttransactionsduringthereportperiod.
(5)Transactionswithrelatedfinancialcompanies?Available?NotavailableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentheCompanyandrelatedfinancialcompaniesandrelatedparties.
(6)TransactionsbetweentherelatedpartiesandfinancialcompaniescontrolledbytheCompany?Available?NotavailableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentherelatedpartiesandthefinancialcompaniescontrolledbytheCompany.
(7)Othermajorrelatedtransactions?Available□NotavailableForothermajorrelatedtransactions,pleaserefertotheSectionX“RelatedPartiesandRelatedTransaction”oftheFinancialReportofthisreport.Disclosurewebsiteofinterimreportformajorrelatedtransaction
Nameofinterimannouncement
| Nameofinterimannouncement | Disclosuredateofinterimannouncement | Nameofdisclosurewebsiteforinterimannouncement |
| None | None |
15.Majorandimportantcontractsandexecutionresults
(1)Trusteeship,contractandleaseholdissues?Trusteeshipsituation?Available?Notavailable
Thereisnotrusteeshipsituationduringthereportperiod?Contractsituation?Available?NotavailableThereisnocontractsituationduringthereportperiod.?Leaseholdsituation
□Available?NotavailableThereisnoleaseholdsituationduringthereportperiod.
(2)Majorguarantee?Available□Notavailable
Unit:CNY’0000
ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries）
| ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries） | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | Collateral(ifhave) | Counterguaranteesituation(ifhave) | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiEconomicandTechnologicalDevelopmentZoneManagementCouncil. | 2016.12.22 | 34,160 | 2016.12.21 | 34,160 | Jointliabilityassurance;Mortgage | - | - | 10years | No | No |
| Totaloftheexternalguaranteequotaapprovedduringthereportperiod(A1) | 0 | Totaloftheactualexternalguaranteeamountduringthereportperiod(A2) | 0 | |||||||
| Totaloftheexternalguaranteequotaapprovedbytheendofthereportperiod(A3) | 34,160 | Balanceoftheactualexternalguaranteebytheendofthereportperiod(A4) | 34,160 | |||||||
GuaranteesituationsbetweentheCompanyandsubsidiaries
| GuaranteesituationsbetweentheCompanyandsubsidiaries | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence | Actualguaranteeamount | Guaranteetype | Collateral | Counterguaranteesituation | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiChangyuWineResearchandDevelopmentCompanyLimited | 2016.12.22 | 72,176 | 2016.12.21 | 72,176 | Jointliabilityassurance;Mortgage | - | - | 10years | No | Yes |
| KilikanoonEstatePtyLtd | 2018.12.05 | 8,528 | 2018.12.13 | 7,518 | Jointliabilityassurance | - | - | 5year | No | Yes |
| Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(B1) | 0 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(B2) | 0 | |||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesbytheendofthereportperiod(B3) | 80,704 | Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(B4) | 79,694 | |||||||
| Guaranteesituationsbetweensubsidiaries | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence | Actualguaranteeamount | Guaranteetype | Collateral | Counterguaranteesituation | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| - | - | - | - | - | - | - | - | - | - | - |
| Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(C1) | 0 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(C2) | 0 | |||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesbytheendofthereportperiod(C3) | 0 | Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(C4) | 0 | |||||||
| TotalguaranteeamountoftheCompany（Totalofabovethreemajoritems） | ||||||||||
Totaloftheapprovedguaranteequotaduringthereportperiod（A1+B1+C1）
| Totaloftheapprovedguaranteequotaduringthereportperiod（A1+B1+C1） | 0 | Totaloftheactualguaranteeamountduringthereportperiod（A2+B2+C2） | 0 |
| Totaloftheapprovedguaranteequotabytheendofthereportperiod（A3+B3+C3） | 114,864 | Balanceoftheactualguaranteebytheendofthereportperiod（A4+B4+C4） | 113,854 |
| Theproportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’snetasset | 10.90% | ||
| Among: | |||
| Theamountofguaranteeforshareholders,actualcontrollersandtheirrelatedparties（D） | 0 | ||
| Theamountofdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratioismorethan70%directlyorindirectly（E） | 0 | ||
| Totalamountofguaranteeofthepartthatexceeds50%ofnetassets（F） | 0 | ||
| Totalamountoftheabove-mentionedthreeitems（D+E+F） | 0 | ||
| Explanationforundueguaranteesthathavehappenedwarrantyliabilityormaytakejointpaybackliabilitiesduringthereportperiod(ifhave) | No | ||
| Explanationforviolatingdueprocesstoprovideexternalguarantee(ifhave) | No | ||
DescriptionofthespecificsituationofusingcompoundguaranteeNo.
(3)Entrustingotherstomanagecashassets?Financialmanagemententrustment
□Available?NotavailableThereisnofinancialmanagemententrustmentduringthereportperiod.?Loanentrustment
□Available?NotavailableThereisnoloanentrustmentduringthereportperiod.
(4)Otherimportantcontracts
□Available?NotavailableTherearenootherimportantcontractsduringthereportperiod.
16.OtherMajorissues
□Available?NotavailableTherearenoothermajorissuesneedtobeexplainedduringthereportperiod.
17.MajorissuesofCompany’ssubsidiaries
□Available?Notavailable
VII.ChangesinSharesandtheShareholders’Situation
1.Changesinshares
(1)Changesinshares
Unit:share
Amountbeforethischange
| Amountbeforethischange | Change(+,-) | Amountafterthischange | |||||||
| Amount | Percentage% | Allotnewshare | Distributebonusshare | Transferothercapitaltosharecapital | Others | Subtotal | Amount | Percentage% | |
| I.Shareswithtradinglimitedcondition | |||||||||
| 1.State-ownedholdings | |||||||||
| 2.State-ownedlegalpersonholdings | |||||||||
| 3.Otherdomesticholdings | |||||||||
| Amongwhich:domesticlegalperson | |||||||||
| domesticnaturalperson | |||||||||
| 4.Foreign-ownedholdings | |||||||||
| Amongwhich:foreignlegalperson | |||||||||
| foreignnaturalperson | |||||||||
| II.Shareswithouttradinglimitedcondition | 685,464,000 | 100% | 685,464,000 | 100% | |||||
| 1.Ashares | 453,460,800 | 66.15% | 453,460,800 | 66.15% | |||||
2.Bshares
| 2.Bshares | 232,003,200 | 33.85% | 232,003,200 | 33.85% | |
| 3.Oversealistedforeignshares | |||||
| 4.Others | |||||
| III.Totalshares | 685,464,000 | 100% | 685,464,000 | 100% |
Causeofsharechange
□Available?NotavailableApprovalofsharechange
□Available?NotavailableTransferownershipofchangedshares
□Available?NotavailableTheinfluenceofsharechangeonthefinancialindicatorssuchasbasicearningspershare,dilutedearningspershareofthelatestyearandthelatestperiod,netassetpersharebelongingtotheCompany’scommonshareholders,etc..
□Available?NotavailableOthercontentstheCompanythinksnecessaryorsecuritiesregulatorydepartmentsasktomakepublic.
□Available?Notavailable
(2)Changesinrestrictedshares
□Available?Notavailable
2.Securitiesissuanceandlistingsituation
(1)Securitiesissuance(excludepreferredshare)duringreportperiod
□Available?Notavailable
(2)ExplanationofchangeinCompany’stotalsharesandshareholdingstructureandchangeinCompany’sassetsandliabilitystructure
□Available?Notavailable
(3)Currentinternalemployeeshares
□Available?Notavailable
3.Situationforshareholdersandtheactualcontrollers
(1)ThenumberofshareholdersoftheCompanyandtheshareholdings
Unit：share
Totalshareholdersinthereportperiod
| Totalshareholdersinthereportperiod | 51,552 | Totalnumberofshareholdersbytheendoflastmonthbeforethedisclosuredayoftheannualreport | 50,528 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendofreportperiod(ifhave)(seenote8) | 0 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendoflastmonthbeforethedisclosuredayoftheannualreport(ifhave)(seenote8) | 0 | |||||||
| Shareholdersholdingmorethan5%orthetop10shareholdersholdingsituation | ||||||||||||||
| NameofShareholders | Characterofshareholders | Percentage(%) | Shareshelduntiltheendofthereportperiod | Changesduringthereportperiod | Numberofrestrictedshares | Numberofunrestrictedshares | Pledgedorfrozen | |||||||
| Sharestatus | Amount | |||||||||||||
| YANTAICHANGYUGROUPCO.,LTD. | Domesticnon-statelegalperson | 50.40% | 345,473,856 | 0 | 0 | 345,473,856 | - | - | ||||||
| GAOLINGFUND,L.P. | Foreignlegalperson | 3.08% | 21,090,219 | 0 | 0 | 21,090,219 | - | - | ||||||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | Foreignlegalperson | 1.33% | 9,140,216 | -5135489 | 0 | 9,140,216 | - | - | ||||||
| SHENWANHONGYUAN | Foreignlegalperson | 1.08% | 7,413,952 | -817781 | 0 | 7,413,952 | - | - | ||||||
SECURITIES(HONGKONG)LIMITED
| SECURITIES(HONGKONG)LIMITED | |||||||||
| FIDELITYPURITANTRUST:FIDELITYSERIESINTRINSICOPPORTUNITIESFUND | Foreignlegalperson | 0.93% | 6,350,762 | 0 | 0 | 6,350,762 | - | - | |
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | Foreignlegalperson | 0.74% | 5,060,702 | -421243 | 0 | 5,060,702 | - | - | |
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 0.73% | 5,011,871 | -470074 | 0 | 5,011,871 | - | - | |
| FengdiJIANG | Domesticnaturalperson | 0.71% | 4,854,000 | 4369300 | 0 | 4,854,000 | - | - | |
| ChinaMerchantsFutures(HongKong)Co.,Limited | Foreignlegalperson | 0.67% | 4,589,660 | 1380939 | 0 | 4,589,660 | - | - | |
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | Foreignlegalperson | 0.61% | 4,170,863 | 362414 | 0 | 4,170,863 | - | - | |
| Strategicinvestorsorlegalresultoftheplacementofnewsharestobecomeatop10shareholders | No | ||||||||
| Theexplanationfortheassociatedrelationshipandaccordantaction | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,whiletherelationshipamongtheothershareholdersisunknown. | ||||||||
| Explanationoftheabove-mentionedshareholders’entrustment/fiduciaryvotingrightsandwaiverofthevotingrights | No | ||||||||
| Specialexplanationfortheexistenceofaspecialrepurchaseaccountamongthetop10shareholders | No | ||||||||
| Thetop10shareholderswithshareswithouttradinglimitedcondition | |||||||||
| NameofShareholders | Numberofshareswithouttradinglimitedconditionhelduntiltheendoftheyear | Typeofshare | |||||||
| Typeofshare | Amount | ||||||||
| YANTAICHANGYUGROUPCO.,LTD. | 345,473,856 | A | 345,473,856 | ||||||
| GAOLINGFUND,L.P. | 21,090,219 | B | 21,090,219 | ||||||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | 9,140,216 | B | 9,140,216 | ||||||
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | 7,413,952 | B | 7,413,952 | ||||||
WhetherornottheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditiontakeagreedrepurchasetradingduringthereportperiod
□Yes?NoThereisnoagreedrepurchasetradingtakenbytheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditionduringthereportperiod.
（2）SituationforthecontrollingshareholdersoftheCompanyPropertyofholdingshareholders:PropertyofholdingmainbodyundefinedTypeofholdingshareholders:Legalrepresentative
Nameofcontrollingshareholder
| Nameofcontrollingshareholder | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiChangyuGroupCo.,Ltd. | ZhouHongjiang | 1997.04.27 | 913706002656458244 | Productionofwine,healthyliquor,distilledliquorand |
FIDELITYPURITANTRUST:FIDELITYSERIESINTRINSICOPPORTUNITIESFUND
| FIDELITYPURITANTRUST:FIDELITYSERIESINTRINSICOPPORTUNITIESFUND | 6,350,762 | B | 6,350,762 |
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | 5,060,702 | B | 5,060,702 |
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | 5,011,871 | B | 5,011,871 |
| FengdiJIANG | 4,854,000 | A | 4,854,000 |
| ChinaMerchantsFutures(HongKong)Co.,Limited | 4,589,660 | B | 4,589,660 |
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | 4,170,863 | B | 4,170,863 |
| Theexplanationfortheassociatedrelationshipandaccordantactionofthetop10shareholderswithunrestrictedshares,thetheassociatedrelationshipandaccordantactionbetweenthetop10shareholderswithunrestrictedsharesandthetop10shareholders | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,andtherelationshipamongtheothershareholdersisunknown. | ||
| Explanationforthetop10shareholderswhoinvolvedinfinancingactivitiesandstocktradingbusiness(ifhave)(seenote4) | Thetop10shareholdersdonotinvolveinfinancingactivitiesandstocktradebusiness. | ||
beverages(onlyproducedbysubsidiaries,shareholdingcompaniesandbranches),salesoftheabove-mentionedproducts,cultivationofagriculturalproductsandexportbusinessunderthescopeofpermission.
| beverages(onlyproducedbysubsidiaries,shareholdingcompaniesandbranches),salesoftheabove-mentionedproducts,cultivationofagriculturalproductsandexportbusinessunderthescopeofpermission. | ||
| Equitysituationfortheotherdomesticlistedcompaniescontrolledorsharedbythecontrollingshareholdersduringthereportperiod | No. | |
Changesinthecontrollingshareholderduringthereportperiod?Available?NotavailableTherearenochangesinthecontrollingshareholderduringthereportperiod.
(3)SituationfortheactualcontrollersoftheCompanyanitspersonsactinginconcertPropertyofactualcontrollers:domesticotherinstitutions;foreignotherinstitutionsTypeofactualcontrollers:Legalrepresentative
| Nameofactualcontrollers | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiYuhuaInvestment&DevelopmentCo.,Ltd. | JiangHua | 2004.10.28 | 76779294-7 | Understatepermission,propertyinvestment,tenancyofmachineandfacility,wholesaleandretailofconstructionmaterial,chemicalproducts(chemicalhazardproductsexcluded),hardwareandelectronicalproducts,grapeplantation. |
| ILLVASaronnoHoldingS.p.a. | ALDINOMARZORATI | 1984.07.25 | － | Directlyorindirectlyconducttheproductionanddistributionoffoodproducts(alcoholicproductsincluded)aswellasindustrial,commercial,financialandserviceactivitiesofanyotherkindsthroughjoint-stockcompaniesandorganizations. |
| InternationalFinanceCorporation | PhilippeLEHOUEROU | 1956.07.25 | － | InternationalFinanceCorporationisoneofthemembersofWorldBank,mainlydedicatedtoinvestmentinprivatesectorsofdevelopingcountrieswhileprovidingtechnicalsupportandconsultationservice.Thecorporationisamultilateralfinancialinstitutionthatranksfirstintheworldintermsofprovidingcapitalstockandloanstodevelopingcountries.Itspurposeistopromotesustainableinvestmentsofprivatesectorsofdevelopingcountriesinordertoalleviatepovertyandimprovepeople’slife. |
YantaiGuofengInvestmentHoldingsGroupCo.,Ltd.
| YantaiGuofengInvestmentHoldingsGroupCo.,Ltd. | RongFeng | 2009.02.12 | 00426068-6 | Operatingmanagementofstate-ownedpropertyright(stockright)authorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;Financing,investmentandoperatingmanagementofgovernmentprojects,suchasstrategicinvestmentandindustrialinvestmentandsoon;Capitaloperation(includingacquisition,reintegrationandtransfer,etc)ofstate-ownedpropertyrightandstate-ownedstockrightwithinthescopeofauthorization;Venturecapitalinvestmentbusiness;Agencyofventurecapitalinvestmentbusinessofotherventureinvestmententerprisesorindividuals;Participationintheestablishmentofventurecapitalinvestmententerprisesandventurecapitalinvestmentmanagementconsultantinstitutions;Investmentandfinancingserviceandconsultingbusiness;Investmentandfinancingconsultantbusiness;OtherbusinessauthorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;wholesaleandretailofnon-ferrousmetalmineralproducts,gold(spotgood),silver(spotgood),chemicalproducts(excludingdangerousgoods),batterymaterials(excludingdangerouschemicals);importandexportofgoodsandtechnologies.(Thebusinessscopedoesnotincludenationalpre-approvalprojectsandprojectsrestrictedbynationalindustrialpolicies;projectsthataresubjecttoapprovalaccordingtolawcanonlycarryoutbusinessactivitiesafterapprovalbyrelevantdepartments). |
| Equitysituationfortheotherdomesticlistedcompaniescontrolledbytheactualcontrollerduringthereportperiod | YantaiYuhuaInvestment&DevelopmentCo.,Ltd.didnotcontroltheequityofotherdomesticandforeignlistedcompaniesexcepttheCompanyduringthereportingperiod;ItisnotclearthatotheractualcontrollerscontroltheequityofotherdomesticandforeignlistedcompaniesotherthantheCompanyduringthereportingperiod. | |||
Changesoftheactualcontrollersduringthereportperiod?Available?NotavailableTherearenochangesinactualcontrollersduringthereportperiod.
IntroductionforpropertyrightandcontrolrelationsbetweentheCompanyanditsactualcontrollers
ActualcontrollercontrolstheCompanythroughatrustorotherassetmanagementways
□Available?Notavailable
(4)Thecompany’scontrollingshareholderorthelargestshareholderanditsconcertedactionperson’scumulativepledgedsharesaccountfor80%ofthecompany’ssharesheldbythem
□Available?Notavailable
(5)Otherinstitutionalshareholdersholdingmorethan10%shares
□Available?Notavailable
(6)Sharesreductionsituationsofholdingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects
□Available?Notavailable
4.ThespecificimplementationofsharerepurchaseduringthereportingperiodImplementationprogressofsharerepurchase
□Available?NotavailableImplementationprogressofreducingsharerepurchasedbycentralizedbidding□Available?Notavailable
VIII.RelatedSituationofPreferredShares
□Available?NotavailableTherearenopreferredsharesduringthereportperiod.
IX.RelatedSituationofBonds
□Available?Notavailable
X.FinancialReport
1.AuditReport
Typeofauditopinion
| Typeofauditopinion | Standardunqualifiedauditopinion |
| Datesignedonauditreport | April25,2022 |
| Auditagencyname | KPMGHuazhenCertifiedPublicAccountantsCo.,Ltd.(specialgeneralpartnership) |
| AuditreportNo. | KPMGHuazhenShenZiNo.2205034 |
| Certifiedpublicaccountant’sname | Ms.WangTing,Ms.XuWeiran |
AUDITOR’SREPORT
KPMGHuazhenShenZiNo.2205034
AllShareholdersofYantaiChangyuPioneerWineCompanyLimited:
OpinionWehaveauditedtheaccompanyingfinancialstatementsofYantaiChangyuPioneerWineCompanyLimited(“YantaiChangyu”),whichcomprisetheconsolidatedbalancesheetandcompanybalancesheetasat31December2021,theconsolidatedincomestatementandcompanyincomestatement,theconsolidatedcashflowstatementandcompanycashflowstatement,theconsolidatedstatementofchangesinshareholders’equityandcompanystatementofchangesinshareholders’equityfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedfinancialpositionandcompanyfinancialpositionofYantaiChangyuasat31December2021,andofitsconsolidatedfinancialperformanceandcompanyfinancialperformanceanditsconsolidatedcashflowsandcompanycashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceofthePeople’sRepublicofChina.BasisforOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditingforCertifiedPublicAccountants(“CSAs”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentofYantaiChangyuinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants(“theCode”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2205034KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsfortheyear.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
RecognitionofSalesRevenuefromDistributors
| RecognitionofSalesRevenuefromDistributors | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”22and“V.Notestotheconsolidatedfinancialstatements”37. | |
| KeyAuditMatters | HowtheMatterwasAddressedinOurAudit |
| TheprincipalactivitiesofYantaiChangyuanditssubsidiaries(hereinafterreferredtoas“YantaiChangyuGroup”)includemanufactureandsalesofwine,brandyandsparklingwine.TherevenueofYantaiChangyuGroupismainlyderivedfromsalesofdistributors.AlldistributortransactiontermsadopttheunifiedtransactiontermsformulatedbyYantaiChangyuGroup.Basedonthecontractualagreementandthebusinessarrangement,YantaiChangyusellsproductstodistributorsandthetransferofproductownershipiscompletedandtherevenueisrecognisedwhenthegoodsaredeliveredtodistributorsandsignedforacceptance.AsrevenueisoneofthekeyperformanceindicatorsofYantaiChangyuGroup,thereisariskthatmanagementmayrecogniserevenueearlierorlaterinordertomeetspecificperformancetargetsorexpectations,therefore,theriskofcut-offmisstatementarisingfromdistributors’salesrevenueisidentifiedasakeyauditmatter. | Ourauditprocedurestoevaluaterevenuerecognitionofsalesrevenuefromdistributorsincludedthefollowing:?UnderstandandevaluatetheManagement’sdesignandoperationeffectivenessofkeyinternalcontrolsrelatedtodistributorsalesrevenuerecognition;?SelectingthesalescontractsYantaiChangyusignedwithdistributorsinordertoexaminewhetherYantaiChangyuhasadoptedtheunifiedtransactionterms,andevaluatewhethertheaccountingpolicyofrevenuerecognitionmeetstherequirementsoftheAccountingStandardsforBusinessEnterprises;?Onasamplingbasis,reconciletherevenuerecordedfortheyeartorelevantsupportingfilessuchasrelevantordersandsigneddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinaccordancewiththeaccountingpolicyofYantaiChangyu; |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2205034
KeyAuditMatters(continued)
RecognitionofSalesRevenuefromDistributors(continued)
| RecognitionofSalesRevenuefromDistributors(continued) | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”22and“V.Notestotheconsolidatedfinancialstatements”37. | |
| TheKeyAuditMatters | Howthematterwasaddressedinouraudit |
| ?Onasamplingbasis,reconcilethesalestransactionbeforeandafterbalancesheetdatetorelevantsupportingfilessuchasrelevantorders,signeddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinappropriateaccountingperiod;?Checkthesalesrecordafterthebalancesheetdatetoidentifysignificantsalesreturnsandcheckrelevantsupportingfiles(Ifapplicable)inordertoevaluatewhetherrelevantrevenueisrecordedintheappropriateaccountingperiod;?Selectrevenueaccountingentriesthatmeetspecificriskcriteriaandcheckrelatedsupportingdocuments. | |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2205034
OtherInformationManagementofYantaiChangyuisresponsiblefortheotherinformation.Theotherinformationcomprisesalltheinformationincludedinthe2021annualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsManagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises,andforthedesign,implementationandmaintenanceofsuchinternalcontrolnecessarytoenablethatthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingYantaiChangyu’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidateYantaiChangyuortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingYantaiChangyu’sfinancialreportingprocess.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2205034Auditor’sResponsibilitiesfortheAuditoftheFinancialStatement(continued)AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,
whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignaudit
proceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessof
accountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisof
accountingand,basisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonYantaiChangyu’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycauseYantaiChangyutoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,
includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationofthe
entitiesorbusinessactivitieswithintheGrouptoexpressourauditopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2205034
Auditor’sResponsibilitiesfortheAuditoftheFinancialStatement(continued)Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependenceand,whereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
KPMGHuazhenLLPCertifiedPublicAccountantsRegistered(Stamp)inthePeople’sRepublicofChina
WangTing(EngagementPartner)(Signatureandstamp)
Beijing,ChinaXuWeiran
(Signatureandstamp)Date:25April2022
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2021
(ExpressedinRenminbiYuan)
Note
| Note | 31December2021 | 31December2020 | |
| Assets | |||
| Currentassets | |||
| Cashatbankandonhand | V.1 | 1,567,095,993 | 1,194,214,929 |
| Billsreceivable | V.2 | 42,827,666 | - |
| Accountsreceivable | V.3 | 291,006,410 | 183,853,362 |
| Receivablesunderfinancing | V.4 | 364,457,497 | 338,090,187 |
| Prepayments | V.5 | 75,235,879 | 71,296,416 |
| Otherreceivables | V.6 | 30,125,270 | 22,428,956 |
| Inventories | V.7 | 2,802,622,520 | 2,945,548,651 |
| Othercurrentassets | V.8 | 217,152,601 | 234,118,715 |
| Totalcurrentassets | 5,390,523,836 | 4,989,551,216 | |
| Non-currentassets | |||
| Long-termequityinvestments | V.9 | 46,496,510 | 48,263,507 |
| Investmentproperties | V.10 | 24,502,258 | 27,057,730 |
| Fixedassets | V.11 | 5,687,867,314 | 5,724,935,846 |
| Constructioninprogress | V.12 | 590,172,099 | 635,495,152 |
| Bearerbiologicalassets | V.13 | 193,712,942 | 192,173,536 |
| Right-of-useassets | V.14 | 134,569,039 | - |
| Intangibleassets | V.15 | 617,866,879 | 660,989,065 |
| Goodwill | V.16 | 112,374,541 | 132,938,212 |
| Long-termdeferredexpenses | V.17 | 284,593,163 | 314,465,855 |
| Deferredtaxassets | V.18 | 245,210,731 | 206,241,275 |
| Othernon-currentassets | V.19 | 144,120,442 | 170,370,147 |
| Totalnon-currentassets | 8,081,485,918 | 8,112,930,325 | |
| Totalassets | 13,472,009,754 | 13,102,481,541 |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2021(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2021 | 31December2020 | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities | |||
| Short-termloans | V.20 | 622,066,457 | 689,090,715 |
| Accountspayable | V.21 | 493,453,816 | 484,347,958 |
| Contractliabilities | V.22 | 147,120,716 | 135,073,280 |
| Employeebenefitspayable | V.23 | 195,019,441 | 188,779,911 |
| Taxespayable | V.24 | 342,322,300 | 213,412,813 |
| Otherpayables | V.25 | 453,033,491 | 386,105,526 |
| Othercurrentliabilities | V.26 | 18,374,193 | 14,820,653 |
| Non-currentliabilitiesduewithinoneyear | V.27 | 110,865,126 | 133,311,890 |
| Totalcurrentliabilities | 2,382,255,540 | 2,244,942,746 | |
| Non-currentliabilities | |||
| Long-termloans | V.28 | 176,047,043 | 200,352,968 |
| Leaseliabilities | V.14 | 101,811,588 | - |
| Long-termpayables | V.29 | 64,000,000 | 86,000,000 |
| Deferredincome | V.30 | 41,295,338 | 52,653,609 |
| Deferredtaxliabilities | V.18 | 11,803,970 | 12,022,613 |
| Othernon-currentliabilities | V.31 | 2,119,671 | 2,078,971 |
| Totalnon-currentliabilities | 397,077,610 | 353,108,161 | |
| Totalliabilities | 2,779,333,150 | 2,598,050,907 |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2021(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2021 | 31December2020 | |
| Liabilitiesandshareholders’equity(continued) | |||
| Shareholders’equity | |||
| Sharecapital | V.32 | 685,464,000 | 685,464,000 |
| Capitalreserve | V.33 | 524,968,760 | 524,968,760 |
| Othercomprehensiveincome | V.34 | (34,707,177) | 576,129 |
| Surplusreserve | V.35 | 342,732,000 | 342,732,000 |
| Retainedearnings | V.36 | 8,929,426,600 | 8,714,091,755 |
| TotalequityattributabletoshareholdersoftheCompany | 10,447,884,183 | 10,267,832,644 | |
| Non-controllinginterests | 244,792,421 | 236,597,990 | |
| Totalowners’equity | 10,692,676,604 | 10,504,430,634 | |
| Totalliabilitiesandshareholders’equity | 13,472,009,754 | 13,102,481,541 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2021(ExpressedinRenminbiYuan)
Note
| Note | 31December2021 | 31December2020 | |
| Assets | |||
| Currentassets | |||
| Cashatbankandonhand | 562,588,819 | 267,548,326 | |
| Billsreceivable | XIV.1 | 9,800,000 | - |
| Receivablesunderfinancing | XIV.2 | 62,411,636 | 13,920,000 |
| Prepayments | 406,500 | 171,709 | |
| Otherreceivables | XIV.3 | 398,072,976 | 580,131,798 |
| Inventories | 383,294,208 | 482,442,935 | |
| Othercurrentassets | 20,637,860 | 24,842,325 | |
| Totalcurrentassets | 1,437,211,999 | 1,369,057,093 | |
| Non-currentassets | |||
| Long-termequityinvestments | XIV.4 | 7,599,421,494 | 7,599,778,880 |
| Investmentproperties | 24,502,258 | - | |
| Fixedassets | 231,284,799 | 270,692,477 | |
| Constructioninprogress | 255,996 | 2,865,243 | |
| Bearerbiologicalassets | 114,753,306 | 115,103,753 | |
| Right-of-useassets | 36,826,342 | - | |
| Intangibleassets | 78,043,888 | 80,789,731 | |
| Deferredtaxassets | 18,033,185 | 18,285,685 | |
| Othernon-currentassets | 2,023,500,000 | 1,530,700,000 | |
| Totalnon-currentassets | 10,126,621,268 | 9,618,215,769 | |
| Totalassets | 11,563,833,267 | 10,987,272,862 |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2021(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2021 | 31December2020 | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities | |||
| Short-termloans | 150,000,000 | 150,000,000 | |
| Accountspayable | 90,339,903 | 76,470,081 | |
| Employeebenefitspayable | 66,770,838 | 67,808,910 | |
| Taxespayable | 32,588,429 | 9,123,959 | |
| Otherpayables | 445,874,937 | 521,505,947 | |
| Non-currentliabilitiesduewithinoneyear | 1,485,190 | - | |
| Totalcurrentliabilities | 787,059,297 | 824,908,897 | |
| Non-currentliabilities | |||
| Leaseliabilities | 43,312,517 | - | |
| Deferredincome | 2,268,527 | 5,507,708 | |
| Deferredtaxliabilities | 88,555 | - | |
| Othernon-currentliabilities | 1,164,471 | 1,164,471 | |
| Totalnon-currentliabilities | 46,834,070 | 6,672,179 | |
| Totalliabilities | 833,893,367 | 831,581,076 |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2021(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2021 | 31December2020 | |
| Liabilitiesandshareholders’equity(continued) | |||
| Shareholders’equity | |||
| Sharecapital | 685,464,000 | 685,464,000 | |
| Capitalreserve | 560,182,235 | 560,182,235 | |
| Surplusreserve | 342,732,000 | 342,732,000 | |
| Retainedearnings | 9,141,561,665 | 8,567,313,551 | |
| Totalowners’equity | 10,729,939,900 | 10,155,691,786 | |
| Totalliabilitiesandshareholders’equity | 11,563,833,267 | 10,987,272,862 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2021
(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| I.Operatingincome | V.37 | 3,953,067,583 | 3,395,402,001 |
| Less:Operatingcost | V.37 | 1,647,789,874 | 1,503,877,407 |
| Taxesandsurcharges | V.38 | 264,057,570 | 203,789,274 |
| Sellinganddistributionexpenses | V.39 | 998,954,105 | 788,252,485 |
| Generalandadministrativeexpenses | V.40 | 299,076,376 | 290,646,466 |
| Researchanddevelopmentexpenses | 10,919,262 | 4,531,418 | |
| Financialexpenses | V.41 | 21,178,727 | 20,441,713 |
| Including:Interestexpenses | 28,851,606 | 32,890,621 | |
| Interestincome | 19,558,354 | 14,247,274 | |
| Add:Otherincome | V.42 | 48,240,741 | 73,063,620 |
| Investmentlosses | V.43 | (2,784,997) | (2,217,623) |
| Including:Lossesfrominvestmentinjointventuresandassociates | (2,784,997) | (2,217,623) | |
| Credit(losses)/reversal | V.44 | (7,937,144) | 4,348,309 |
| Impairmentlosses | V.45 | (19,874,251) | (3,215,978) |
| Lossesfromdisposalofassets | V.46 | (11,939,284) | (1,180,655) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2021(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| II.Operatingprofit | 716,796,734 | 654,660,911 | |
| Add:Non-operatingincome | V.47 | 5,214,304 | 11,908,510 |
| Less:Non-operatingexpenses | V.47 | 6,311,844 | 1,702,858 |
| III.Totalprofit | 715,699,194 | 664,866,563 | |
| Less:Incometaxexpenses | V.48 | 209,020,821 | 191,804,500 |
| IV.Netprofit | 506,678,373 | 473,062,063 | |
| (1)Netprofitclassifiedbycontinuityofoperations: | |||
| 1.Netprofitfromcontinuingoperations | 506,678,373 | 473,062,063 | |
| 2.Netprofitfromdiscontinuedoperations | - | - | |
| (2)Netprofitclassifiedbyownership: | |||
| 1.NetprofitattributabletoownersoftheCompany | 500,102,606 | 470,860,587 | |
| 2.Non-controllinginterests | 6,575,767 | 2,201,476 | |
| V.Othercomprehensiveincome,netoftax | (39,307,949) | 5,171,635 | |
| (1)Othercomprehensiveincome(netoftax)attributabletoshareholdersoftheCompany | (35,283,306) | 4,811,712 | |
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | (35,283,306) | 4,811,712 | |
| (2)Othercomprehensiveincome(netoftax)attributabletonon-controllinginterests | (4,024,643) | 359,923 |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2021(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| VI.Totalcomprehensiveincomefortheyear | 467,370,424 | 478,233,698 | |
| (1)AttributabletoshareholdersoftheCompany | 464,819,300 | 475,672,299 | |
| (2)Attributabletonon-controllinginterests | 2,551,124 | 2,561,399 | |
| VII.Earningspershare: | |||
| (1)Basicearningspershare | V.49 | 0.73 | 0.69 |
| (2)Dilutedearningspershare | V.49 | 0.73 | 0.69 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2021(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| I.Operatingincome | XIV.5 | 578,895,802 | 512,303,553 |
| Less:Operatingcost | XIV.5 | 472,158,738 | 452,368,512 |
| Taxesandsurcharges | 38,263,612 | 19,841,835 | |
| Generalandadministrativeexpenses | 74,948,200 | 74,929,302 | |
| Researchanddevelopmentexpenses | 907,975 | 728,793 | |
| Financialexpenses | 2,193,348 | (602,459) | |
| Including:Interestexpenses | 5,870,092 | 4,875,912 | |
| Interestincome | 7,122,455 | 5,594,285 | |
| Add:Otherincome | 6,108,832 | 5,339,898 | |
| Investmentincome | XIV.6 | 867,523,178 | 449,504,721 |
| Creditreversal | - | 601,610 | |
| II.Operatingprofit | 864,055,939 | 420,483,799 | |
| Add:Non-operatingincome | 997,416 | 3,961,267 | |
| Less:Non-operatingexpenses | 3,295,694 | 1,050,415 |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2021(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| III.Totalprofit | 861,757,661 | 423,394,651 | |
| Less:Incometaxexpenses | 6,703,679 | (3,766,123) | |
| IV.Netprofit | 855,053,982 | 427,160,774 | |
| (i)Netprofitfromcontinuingoperations | 855,053,982 | 427,160,774 | |
| (ii)Netprofitfromdiscontinuedoperations | - | - | |
| V.Othercomprehensiveincome,netoftax | - | - | |
| VI.Totalcomprehensiveincomefortheyear | 855,053,982 | 427,160,774 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2021
(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 3,674,741,084 | 3,259,057,195 | |
| Refundoftaxesandsurcharges | 48,716,047 | 45,642,498 | |
| Proceedsfromotheroperatingactivities | V.50(1) | 89,142,251 | 81,197,248 |
| Sub-totalofcashinflows | 3,812,599,382 | 3,385,896,941 | |
| Paymentforgoodsandservices | 957,499,905 | 1,095,500,438 | |
| Paymenttoandforemployees | 507,532,110 | 529,304,037 | |
| Paymentofvarioustaxes | 659,986,692 | 704,054,796 | |
| Paymentforotheroperatingactivities | V.50(2) | 562,198,017 | 551,890,997 |
| Sub-totalofcashoutflows | 2,687,216,724 | 2,880,750,268 | |
| Netcashflowsfromoperatingactivities | V.51(1) | 1,125,382,658 | 505,146,673 |
| II.Cashflowsfrominvestingactivities: | |||
| Proceedsfromdisposalofinvestments | 93,553,062 | 135,647,402 | |
| Investmentreturnsreceived | 2,587,932 | 1,730,511 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 7,923,724 | 49,200,301 | |
| Sub-totalofcashinflows | 104,064,718 | 186,578,214 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 225,502,766 | 155,918,502 | |
| Paymentforacquisitionofinvestments | 54,218,000 | 83,508,393 | |
| Netcashpaidfortheacquisitionofsubsidiariesandotherbusinessunits | V.51(2) | - | 89,519,789 |
| Sub-totalofcashoutflows | 279,720,766 | 328,946,684 | |
| Netcashflowsfrominvestingactivities | (175,656,048) | (142,368,470) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2021(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| III.Cashflowsfromfinancingactivities: | |||
| Proceedsfrominvestors | 7,840,000 | - | |
| Proceedsfromborrowings | 847,358,786 | 987,668,379 | |
| Sub-totalofcashinflows | 855,198,786 | 987,668,379 | |
| Repaymentsofborrowings | 1,036,788,771 | 1,098,773,637 | |
| Paymentfordividends,profitdistributionsorinterest | 302,051,763 | 531,697,065 | |
| Paymentforotherfinancingactivities | V.50(3) | 15,904,567 | 62,966,747 |
| Sub-totalofcashoutflows | 1,354,745,101 | 1,693,437,449 | |
| Netcashflowsfromfinancingactivities | (499,546,315) | (705,769,070) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | (518,371) | (1,743,498) | |
| V.Netincrease/(decrease)incashandcashequivalents | V.51(1) | 449,661,924 | (344,734,365) |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 1,052,665,105 | 1,397,399,470 | |
| VI.Cashandcashequivalentsattheendoftheyear | V.51(3) | 1,502,327,029 | 1,052,665,105 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2021(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 514,762,698 | 365,804,968 | |
| Proceedsfromotheroperatingactivities | 47,112,100 | 19,507,538 | |
| Sub-totalofcashinflows | 561,874,798 | 385,312,506 | |
| Paymentforgoodsandservices | 313,397,323 | 261,854,964 | |
| Paymenttoandforemployees | 76,053,780 | 65,247,752 | |
| Paymentofvarioustaxes | 39,248,076 | 6,778,231 | |
| Paymentforotheroperatingactivities | 71,110,685 | 139,442,785 | |
| Sub-totalofcashoutflows | 499,809,864 | 473,323,732 | |
| Netcashflowsfromoperatingactivities | 62,064,934 | (88,011,226) | |
| II.Cashflowsfrominvestingactivities: | |||
| Proceedsfromdisposalofinvestments | 38,200,000 | 58,238,750 | |
| Investmentreturnsreceived | 1,068,448,220 | 450,538,570 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 408,885 | 131,260 | |
| Proceedsfromborrowingstosubsidiaries | 162,200,000 | 9,000,000 | |
| Sub-totalofcashinflows | 1,269,257,105 | 517,908,580 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 22,919,289 | 51,762,211 | |
| Paymentforacquisitionofinvestments | 38,200,000 | 131,408,115 | |
| Netcashpaidfortheacquisitionofsubsidiariesandotherbusinessunits | - | 89,519,789 | |
| Cashpaidtosubsidiaries | 655,000,000 | 112,000,000 | |
| Sub-totalofcashoutflows | 716,119,289 | 384,690,115 | |
| Netcashflowsfrominvestingactivities | 553,137,816 | 133,218,465 |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2021(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2021 | 2020 | |
| III.Cashflowsfromfinancingactivities: | |||
| Proceedsfromborrowings | 150,000,000 | 150,000,000 | |
| Sub-totalofcashinflows | 150,000,000 | 150,000,000 | |
| Repaymentsofborrowings | 150,000,000 | 150,000,000 | |
| Paymentfordividendsorinterest | 280,055,692 | 486,200,712 | |
| Paymentforotherfinancingactivities | 3,460,687 | - | |
| Sub-totalofcashoutflows | 433,516,379 | 636,200,712 | |
| Netcashflowsfromfinancingactivities | (283,516,379) | (486,200,712) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | - | - | |
| V.Netincrease/(decrease)incashandcashequivalents | 331,686,371 | (440,993,473) | |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 182,123,069 | 623,116,542 | |
| VI.Cashandcashequivalentsattheendoftheyear | 513,809,440 | 182,123,069 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equityfortheyearended31December2021
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 685,464,000 | 524,968,760 | 576,129 | 342,732,000 | 8,714,091,755 | 10,267,832,644 | 236,597,990 | 10,504,430,634 | |
| Add:Changesinaccountingpolicies | - | - | - | - | (10,582,161) | (10,582,161) | - | (10,582,161) | |
| Adjustedbalanceatthebeginningoftheyear | 685,464,000 | 524,968,760 | 576,129 | 342,732,000 | 8,703,509,594 | 10,257,250,483 | 236,597,990 | 10,493,848,473 | |
| II.Changesinequityduringtheyear | |||||||||
| (1)Totalcomprehensiveincome | - | - | (35,283,306) | - | 500,102,606 | 464,819,300 | 2,551,124 | 467,370,424 | |
| (2)Shareholders’contributions | |||||||||
| Establishmentofsubsidiaries | - | - | - | - | - | - | 7,840,000 | 7,840,000 | |
| (3)Appropriationofprofits | V.36 | ||||||||
| Distributionstoshareholders | - | - | - | - | (274,185,600) | (274,185,600) | (2,196,693) | (276,382,293) | |
| III.Balanceattheendoftheyear | 685,464,000 | 524,968,760 | (34,707,177) | 342,732,000 | 8,929,426,600 | 10,447,884,183 | 244,792,421 | 10,692,676,604 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equityfortheyearended31December2020
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 685,464,000 | 642,775,360 | (4,235,583) | 342,732,000 | 8,735,513,044 | 10,402,248,821 | 271,876,064 | 10,674,124,885 | |
| II.Changesinequityduringtheyear | |||||||||
| (1)Totalcomprehensiveincome | - | - | 4,811,712 | - | 470,860,587 | 475,672,299 | 2,561,399 | 478,233,698 | |
| (2)Shareholders’contributions | |||||||||
| Acquisitionsofnon-controllinginterests | - | (28,286,811) | - | - | - | (28,286,811) | (34,679,936) | (62,966,747) | |
| (3)Appropriationofprofits | V.36 | ||||||||
| Distributionstoshareholders | - | - | - | - | (492,281,876) | (492,281,876) | (3,159,537) | (495,441,413) | |
| (4)Businesscombinationundercommoncontrol | - | (89,519,789) | - | - | - | (89,519,789) | - | (89,519,789) | |
| III.Balanceattheendoftheyear | 685,464,000 | 524,968,760 | 576,129 | 342,732,000 | 8,714,091,755 | 10,267,832,644 | 236,597,990 | 10,504,430,634 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2021
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 8,567,313,551 | 10,155,691,786 | |
| Add:Changesinaccountingpolicies | III.33 | (6,620,268) | (6,620,268) | |||
| Adjustedbalanceatthebeginningoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 8,560,693,283 | 10,149,071,518 | |
| II.Changesinequityduringtheyear | ||||||
| (1)Totalcomprehensiveincome | - | - | - | 855,053,982 | 855,053,982 | |
| (2)Appropriationofprofits | ||||||
| Distributionstoshareholders | - | - | - | (274,185,600) | (274,185,600) | |
| III.Balanceattheendoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 9,141,561,665 | 10,729,939,900 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2020(continued)
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 | |
| II.Changesinequityduringtheyear | ||||||
| (1)Totalcomprehensiveincome | - | - | - | 427,160,774 | 427,160,774 | |
| (2)Shareholders’contributions | ||||||
| PurchaseofshareequityofYantaiChangyuCultureDevelopmentCo.,Ltd(“CultureDevelopment”) | - | 2,959,781 | - | - | 2,959,781 | |
| (3)Appropriationofprofits | ||||||
| Distributionstoshareholders | - | - | - | (479,824,800) | (479,824,800) | |
| III.Balanceattheendoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 8,567,313,551 | 10,155,691,786 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon25April2022.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages105to196formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedNotestothefinancialstatements
(ExpressedinRenminbiYuanunlessotherwiseindicated)I.Companystatus
YantaiChangyuPioneerWineCo.,Ltd.(the"Company”orthe“JointStockCompany”)was
incorporatedasajointstocklimitedcompanyinaccordancewiththeCompanyLawofthe
People'sRepublicofChina(the"PRC")inareorganisationcarriedoutbyYantaiChangyu
GroupCo.,Ltd.("ChangyuGroup"),inwhichChangyuGroupCompanyinjectedcertain
assetsandliabilitiesinrelationtothebrandy,wine,andsparklingwineproductionandsales
businessestotheCompany.TheCompanyanditssubsidiaries(the"Group")areprincipally
engagedintheproductionandsalesofwine,brandy,sparklingwine,grapegrowingand
acquisition,aswellastravelresourcedevelopment,etc.RegistrationplaceoftheCompany
isYantai,Shandong.HeadquarteroftheCompanyislocatedatNo.56DaMaLu,Zhifu
District,Yantai,Shandong,PRC.
Asat31December2021thetotalsharesissuedbytheCompanyamountsto685,464,000
shares.PleaserefertoNoteV.32indetail.
TheholdingcompanyoftheGroupisChangyuGroupCompany,whichisjointlycontrolledby
YantaiGuoFengInvestmentHoldingLtd,ILLVASARONNOHOLDINGSPA,International
FinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited.
Thefinancialstatementshavebeenauthorisedbytheboardofdirectorson25April2022.
AccordingtotheCompany'sarticlesofassociation,thefinancialstatementswillbereviewed
byshareholdersontheshareholder'smeeting.
Forconsolidationscopeoftheyear,pleaserefertoNoteVI"Equityinotherentities"indetail.II.Basisofpreparation
Thefinancialstatementshavebeenpreparedonthegoingconcernbasis.
TheGrouphasadoptedtherevised“AccountingStandardforBusinessEnterprisesNo.22–
FinancialInstruments:RecognitionandMeasurement”andrelatednewfinancialinstruments
standardsand“AccountingStandardforBusinessEnterprisesNo.14–Revenue”,issuedby
theMinistryofFinance(“MOF”)ofthePeople’sRepublicofChinain2017,since1January
2019and1January2020respectively.Inaddition,ithasadoptedtherevised“Accounting
StandardforBusinessEnterprisesNo.21–Leases”issuedbytheMOFin2018since1
January2021(seeNoteIII.33(1)).
III.Significantaccountingpoliciesandaccountingestimates1Statementofcompliance
ThefinancialstatementshavebeenpreparedinaccordancewiththerequirementsofAccountingStandardsforBusinessEnterprisesorreferredtoasChinaAccountingStandards(“CAS”)issuedbytheMOF.ThesefinancialstatementspresenttrulyandcompletelytheconsolidatedfinancialpositionandfinancialpositionoftheCompanyasat31December2021,andtheconsolidatedfinancialperformanceandfinancialperformanceandtheconsolidatedcashflowsandcashflowsoftheCompanyfortheyearthenended.Thesefinancialstatementsalsocomplywiththedisclosurerequirementsof“RegulationonthePreparationofInformationDisclosuresbyCompaniesIssuingSecurities,No.15:GeneralRequirementsforFinancialReports”asrevisedbytheChinaSecuritiesRegulatoryCommission(“CSRC”)in2014.2Accountingperiod
Theaccountingperiodisfrom1Januaryto31December.3Operatingcycle
TheCompanytakestheperiodfromtheacquisitionofassetsforprocessingtountilthe
ultimaterealisationofcashorcashequivalentsasanormaloperatingcycle.Theoperating
cycleoftheCompanyis12months.4Functionalcurrency
Renminbi("RMB")isthecurrencyoftheprimaryeconomicenvironmentinwhichthe
Companyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomestic
subsidiarieschooseRMBastheirfunctionalcurrency.Overseassubsidiariesofthe
CompanyadoptEuro,ChileanPesoandAustralianDollarastheirfunctionalcurrenciesonthe
basisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadopts
RMBtoprepareitsfinancialstatements.5Accountingtreatmentsforbusinesscombinationsinvolvingentitiesundercommoncontrol
andnotundercommoncontrol
AtransactionconstitutesabusinesscombinationwhentheGroupobtainscontrolofoneor
moreentities(oragroupofassetsornetassets).Businesscombinationisclassifiedas
eitherbusinesscombinationsinvolvingenterprisesundercommoncontrolorbusiness
combinationsnotinvolvingenterprisesundercommoncontrol.
Foratransactionnotinvolvingenterprisesundercommoncontrol,theacquirerdetermines
whetheracquiredsetofassetsconstituteabusiness.TheGroupmayelecttoapplythe
simplifiedassessmentmethod,theconcentrationtest,todeterminewhetheranacquiredset
ofassetsisnotabusiness.Iftheconcentrationtestismetandthesetofassetsis
determinednottobeabusiness,nofurtherassessmentisneeded.Iftheconcentrationtest
isnotmet,theGroupshallperformtheassessmentaccordingtotheguidanceonthe
determinationofabusiness.
Whenthesetofassetsthegroupacquireddoesnotconstituteabusiness,acquisitioncostsshouldbeallocatedtoeachidentifiableassetsandliabilitiesattheiracquisition?datefairvalues.Itisnotrequiredtoapplytheaccountingofbusinesscombinationdescribedasbelow.
(1)Businesscombinationsinvolvingentitiesundercommoncontrol
Abusinesscombinationinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination,andthatcontrolisnottransitory.Theassetsacquiredandliabilitiesassumedaremeasuredbasedontheircarryingamountsintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweenthecarryingamountofthenetassetsacquiredandtheconsiderationpaidforthecombination(orthetotalparvalueofsharesissued)isadjustedagainstsharepremiuminthecapitalreserve,withanyexcessadjustedagainstretainedearnings.Anycostsdirectlyattributabletothecombinationarerecognisedinprofitorlosswhenincurred.Thecombinationdateisthedateonwhichonecombiningentityobtainscontrolofothercombiningentities.
(2)Businesscombinationsinvolvingentitiesnotundercommoncontrol
Abusinesscombinationinvolvingentitiesnotundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination.Where(1)theaggregateoftheacquisition-datefairvalueofassetstransferred(includingtheacquirer’spreviouslyheldequityinterestintheacquiree),liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree,exceeds(2)theacquirer’sinterestintheacquisition-datefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceisrecognisedasgoodwill(seeNoteIII.18).If(1)islessthan(2),thedifferenceisrecognisedinprofitorlossforthecurrentperiod.Otheracquisition-relatedcostsareexpensedwhenincurred.Theacquiree’sidentifiableasset,liabilitiesandcontingentliabilities,iftherecognitioncriteriaaremet,arerecognisedbytheGroupattheiracquisition-datefairvalue.Theacquisitiondateisthedateonwhichtheacquirerobtainscontroloftheacquiree.Forabusinesscombinationinvolvingentitiesnotundercommoncontrolandachievedinstages,theGroupremeasuresitspreviously-heldequityinterestintheacquireetoitsacquisition-datefairvalueandrecognisesanyresultingdifferencebetweenthefairvalueandthecarryingamountasinvestmentincomeorothercomprehensiveincomeforthecurrentperiod.Inaddition,anyamountrecognisedinothercomprehensiveincomethatmaybereclassifiedtoprofitorloss,inpriorreportingperiodsrelatingtothepreviously-heldequityinterest,andanyotherchangesintheowners’equityunderequityaccounting,aretransferredtoinvestmentincomeintheperiodinwhichtheacquisitionoccurs(seeNoteIII.11(2)(b)).Ifequityinterestsoftheacquireeheldbeforeacquisition-datewereequityinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,othercomprehensiveincomerecognisedshallbemovedtoretainedearningsonacquisition-date.
6Consolidatedfinancialstatements
(1)Generalprinciples
ThescopeofconsolidatedfinancialstatementsisbasedoncontrolandtheconsolidatedfinancialstatementscomprisetheCompanyanditssubsidiaries.Controlexistswhentheinvestorhasalloffollowing:powerovertheinvestee;exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.WhenassessingwhethertheGrouphaspower,onlysubstantiverights(heldbytheGroupandotherparties)areconsidered.Thefinancialposition,financialperformanceandcashflowsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.Non-controllinginterestsarepresentedseparatelyintheconsolidatedbalancesheetwithinshareholders’equity.Netprofitorlossattributabletonon-controllingshareholdersispresentedseparatelyintheconsolidatedincomestatementbelowthenetprofitlineitem.Totalcomprehensiveincomeattributabletonon-controllingshareholdersispresentedseparatelyintheconsolidatedincomestatementbelowthetotalcomprehensiveincomelineitem.Whentheamountoflossforthecurrentperiodattributabletothenon-controllingshareholdersofasubsidiaryexceedsthenon-controllingshareholders’shareoftheopeningowners’equityofthesubsidiary,theexcessisstillallocatedagainstthenon-controllinginterests.WhentheaccountingperiodoraccountingpoliciesofasubsidiaryaredifferentfromthoseoftheCompany,theCompanymakesnecessaryadjustmentstothefinancialstatementsofthesubsidiarybasedontheCompany’sownaccountingperiodoraccountingpolicies.Intra-groupbalancesandtransactions,andanyunrealisedprofitorlossarisingfromintra-grouptransactions,areeliminatedwhenpreparingtheconsolidatedfinancialstatements.Unrealisedlossesresultingfromintra-grouptransactionsareeliminatedinthesamewayasunrealisedgains,unlesstheyrepresentimpairmentlossesthatarerecognisedinthefinancialstatements.
(2)Subsidiariesacquiredthroughabusinesscombination
Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesundercommoncontrol,thefinancialstatementsofthesubsidiaryareincludedintheconsolidatedfinancialstatementsbasedonthecarryingamountsoftheassetsandliabilitiesofthesubsidiaryinthefinancialstatementsoftheultimatecontrollingpartyasifthecombinationhadoccurredatthedatethattheultimatecontrollingpartyfirstobtainedcontrol.Theopeningbalancesandthecomparativefiguresoftheconsolidatedfinancialstatementsarealsorestated.Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesnotundercommoncontrol,theidentifiableassetsandliabilitiesoftheacquiredsubsidiariesareincludedinthescopeofconsolidationfromthedatethatcontrolcommences,basedonthefairvalueofthoseidentifiableassetsandliabilitiesattheacquisitiondate.
(3)Disposalofsubsidiaries
WhentheGrouplosescontroloverasubsidiary,anyresultingdisposalgainsorlossesarerecognisedasinvestmentincomeforthecurrentperiod.Theremainingequityinvestmentisre-measuredatitsfairvalueatthedatewhencontrolislost,anyresultinggainsorlossesarealsorecognisedasinvestmentincomeforthecurrentperiod.WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,thefollowingareconsideredtodeterminewhethertheGroupshouldaccountforthemultipletransactionsasabundledtransaction:
-arrangementsareenteredintoatthesametimeorincontemplationofeachother;-arrangementsworktogethertoachieveanoverallcommercialeffect;-theoccurrenceofonearrangementisdependentontheoccurrenceofatleastoneother
arrangement;-onearrangementconsideredonitsownisnoteconomicallyjustified,butitiseconomically
justifiedwhenconsideredtogetherwithotherarrangements.Ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposalofequityinvestmentinsubsidiarieswherecontrolisretained(seeNoteIII.6(4)).Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognisedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.
(4)Changesinnon-controllinginterests
WheretheCompanyacquiresanon-controllinginterestfromasubsidiary’snon-controllingshareholdersordisposesofaportionofaninterestinasubsidiarywithoutachangeincontrol,thedifferencebetweentheproportioninterestsofthesubsidiary’snetassetsbeingacquiredordisposedandtheamountoftheconsiderationpaidorreceivedisadjustedtothecapitalreserve(sharepremium)intheconsolidatedbalancesheet,withanyexcessadjustedtoretainedearnings.7Cashandcashequivalents
Cashandcashequivalentscomprisecashonhand,depositsthatcanbereadilywithdrawondemand,andshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandaresubjecttoaninsignificantriskofchangeinvalue.8Foreigncurrencytransactionsandtranslationofforeigncurrencyfinancialstatements
WhentheGroupreceivescapitalinforeigncurrenciesfrominvestors,thecapitalistranslatedtoRenminbiatthespotexchangerateatthedateofthereceipt.Otherforeigncurrencytransactionsare,oninitialrecognition,translatedtoRenminbiatthespotexchangerates.
MonetaryitemsdenominatedinforeigncurrenciesaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Theresultingexchangedifferencesaregenerallyrecognisedinprofitorloss,unlesstheyarisefromthere-translationoftheprincipalandinterestofspecificborrowingsfortheacquisitionandconstructionofqualifyingassets(seeNoteIII.15).Non-monetaryitemsthataremeasuredathistoricalcostinforeigncurrenciesaretranslatedtoRenminbiusingtheexchangerateatthetransactiondate.Intranslatingthefinancialstatementsofaforeignoperation,assetsandliabilitiesofforeignoperationaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Equityitems,excludingretainedearningsandthetranslationdifferencesinothercomprehensiveincome,aretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.IncomeandexpensesintheincomestatementaretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.Theresultingtranslationdifferencesarerecognisedinothercomprehensiveincome.Thetranslationdifferencesaccumulatedinothercomprehensiveincomewithrespecttoaforeignoperationaretransferredtoprofitorlossintheperiodwhentheforeignoperationisdisposed.9Financialinstruments
Financialinstrumentsincludecashatbankandonhand,investmentsindebtandequitysecuritiesotherthanthoseclassifiedaslong-termequityinvestments(seeNoteIII.11),receivables,payables,loansandborrowingsandsharecapital.
(1)Recognitionandinitialmeasurementoffinancialassetsandfinancialliabilities
AfinancialassetorfinancialliabilityisrecognisedinthebalancesheetwhentheGroupbecomesapartytothecontractualprovisionsofafinancialinstrument.Afinancialassets(unlessitisatradereceivablewithoutasignificantfinancingcomponent)andfinancialliabilitiesismeasuredinitiallyatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,anyrelateddirectlyattributabletransactioncostsarechargedtoprofitorloss;forothercategoriesoffinancialassetsandfinancialliabilities,anyrelateddirectlyattributabletransactioncostsareincludedintheirinitialcosts.Atradereceivable,withoutsignificantfinancingcomponentorpracticalexpedientappliedforoneyearorlesscontracts,isinitiallymeasuredatthetransactionpriceinaccordancewithNoteIII.22.
(2)Classificationandsubsequentmeasurementoffinancialassets
(a)Classificationoffinancialassets
Theclassificationoffinancialassetsisgenerallybasedonthebusinessmodelinwhichafinancialassetismanagedanditscontractualcashflowcharacteristics.Oninitialrecognition,afinancialassetisclassifiedasmeasuredatamortisedcost,atfairvaluethroughothercomprehensiveincome(“FVOCI”),oratfairvaluethroughprofitorloss(“FVTPL”).FinancialassetsarenotreclassifiedsubsequenttotheirinitialrecognitionunlesstheGroupchangesitsbusinessmodelformanagingfinancialassetsinwhichcaseallaffectedfinancialassetsarereclassifiedonthefirstdayofthefirstreportingperiodfollowingthechangeinthebusinessmodel.
AfinancialassetismeasuredatamortisedcostifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveistoholdassetstocollect
contractualcashflows;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolely
paymentsofprincipalandinterestontheprincipalamountoutstanding.AdebtinvestmentismeasuredatFVOCIifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollecting
contractualcashflowsandsellingfinancialassets;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolely
paymentsofprincipalandinterestontheprincipalamountoutstanding.Oninitialrecognitionofanequityinvestmentthatisnotheldfortrading,theGroupmayirrevocablyelecttopresentsubsequentchangesintheinvestment’sfairvalueinothercomprehensiveincome.Thiselectionismadeonaninvestment-by-investmentbasis.Theinstrumentmeetsthedefinitionofequityfromtheperspectiveoftheissuer.AllfinancialassetsnotclassifiedasmeasuredatamortisedcostorFVOCIasdescribedabovearemeasuredatFVTPL.Oninitialrecognition,theGroupmayirrevocablydesignateafinancialassetthatotherwisemeetstherequirementstobemeasuredatamortisedcostoratFVOCIasatFVTPLifdoingsoeliminatesorsignificantlyreducesanaccountingmismatchthatwouldotherwisearise.ThebusinessmodelreferstohowtheGroupmanagesitsfinancialassetsinordertogeneratecashflows.Thatis,theGroup’sbusinessmodeldetermineswhethercashflowswillresultfromcollectingcontractualcashflows,sellingfinancialassetsorboth.TheGroupdeterminesthebusinessmodelformanagingthefinancialassetsaccordingtothefactsandbasedonthespecificbusinessobjectiveformanagingthefinancialassetsdeterminedbytheGroup’skeymanagementpersonnel.Inassessingwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterest,theGroupconsidersthecontractualtermsoftheinstrument.Forthepurposesofthisassessment,‘principal’isdefinedasthefairvalueofthefinancialassetoninitialrecognition.‘Interest’isdefinedasconsiderationforthetimevalueofmoneyandforthecreditriskassociatedwiththeprincipalamountoutstandingduringaparticularperiodoftimeandforotherbasiclendingrisksandcosts,aswellasaprofitmargin.TheGroupalsoassesseswhetherthefinancialassetcontainsacontractualtermthatcouldchangethetimingoramountofcontractualcashflowssuchthatitwouldnotmeetthiscondition.(b)Subsequentmeasurementoffinancialassets
-FinancialassetsatFVTPL
Thesefinancialassetsaresubsequentlymeasuredatfairvalue.Netgainsand
losses,includinganyinterestordividendincome,arerecognisedinprofitorloss
unlessthefinancialassetsarepartofahedgingrelationship.
-Financialassetsatamortisedcost
Theseassetsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Againorlossonafinancialassetthatismeasuredatamortisedcostandisnotpartofahedgingrelationshipshallberecognisedinprofitorlosswhenthefinancialassetisderecognised,reclassified,throughtheamortisationprocessorinordertorecogniseimpairmentgainsorlosses.-DebtinvestmentsatFVOCI
Theseassetsaresubsequentlymeasuredatfairvalue.Interestincomecalculatedusingtheeffectiveinterestmethod,impairmentandforeignexchangegainsandlossesarerecognisedinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoprofitorloss.-EquityinvestmentsatFVOCI
Theseassetsaresubsequentlymeasuredatfairvalue.Dividendsarerecognisedasincomeinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoretainedearnings.
(3)Classificationandsubsequentmeasurementoffinancialliabilities
FinancialliabilitiesareclassifiedasmeasuredatFVTPLoramortisedcostbytheGroup.-FinancialliabilitiesatFVTPL
AfinancialliabilityisclassifiedasatFVTPLifitisclassifiedasheld-for-trading(includingderivativefinancialliability)oritisdesignatedassuchoninitialrecognition.FinancialliabilitiesatFVTPLaresubsequentlymeasuredatfairvalueandnetgainsandlosses,includinganyinterestexpense,arerecognisedinprofitorloss,unlessthefinancialliabilitiesarepartofahedgingrelationship.-Financialliabilitiesatamortisedcost
Thesefinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
(4)Offsetting
Financialassetsandfinancialliabilitiesaregenerallypresentedseparatelyinthebalancesheet,andarenotoffset.However,afinancialassetandafinancialliabilityareoffsetandthenetamountispresentedinthebalancesheetwhenbothofthefollowingconditionsaresatisfied:
-TheGroupcurrentlyhasalegallyenforceablerighttosetofftherecognisedamounts;-TheGroupintendseithertosettleonanetbasis,ortorealisethefinancialassetandsettlethefinancialliabilitysimultaneously.
(5)Derecognitionoffinancialassetsandfinancialliabilities
Financialassetisderecognisedwhenoneofthefollowingconditionsismet:
-theGroup’scontractualrightstothecashflowsfromthefinancialassetexpire;-thefinancialassethasbeentransferredandtheGrouptransferssubstantiallyalloftherisksandrewardsofownershipofthefinancialasset;or;-thefinancialassethasbeentransferred,althoughtheGroupneithertransfersnorretains
substantiallyalloftherisksandrewardsofownershipofthefinancialasset,itdoesnotretaincontroloverthetransferredasset.Whereatransferofafinancialassetinitsentiretymeetsthecriteriaforderecognition,thedifferencebetweenthetwoamountsbelowisrecognisedinprofitorloss:
-thecarryingamountofthefinancialassettransferredmeasuredatthedateof
derecognition;-thesumoftheconsiderationreceivedfromthetransferand,whenthetransferredfinancial
assetisadebtinvestmentatFVOCI,anycumulativegainorlossthathasbeenrecognised
directlyinothercomprehensiveincomeforthepartderecognised.TheGroupderecognisesafinancialliability(orpartofit)onlywhenitscontractualobligation(orpartofit)isextinguished.
(6)Impairment
TheGrouprecogniseslossallowancesforexpectedcreditloss(ECL)on:
-financialassetsmeasuredatamortisedcost;-financialinvestmentsatfairvaluethroughothercomprehensiveincomeFinancialassetsmeasuredatfairvalue,includingdebtinvestmentsorequitysecuritiesatFVPL,equitysecuritiesdesignatedatFVOCIandderivativefinancialassets,arenotsubjecttotheECLassessment.MeasurementofECLsECLsareaprobability-weightedestimateofcreditlosses.Creditlossesaremeasuredasthepresentvalueofallcashshortfalls(i.e.thedifferencebetweenthecashflowsduetotheentityinaccordancewiththecontractandthecashflowsthattheGroupexpectstoreceive).ThemaximumperiodconsideredwhenestimatingECLsisthemaximumcontractualperiod(includingextensionoptions)overwhichtheGroupisexposedtocreditrisk.LifetimeECLsaretheECLsthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.12-monthECLsaretheportionofECLsthatresultfromdefaulteventsthatarepossiblewithinthe12monthsafterthebalancesheetdate(orashorterperiodiftheexpectedlifeoftheinstrumentislessthan12months).
Foraccountsreceivable,lossallowancearealwaysmeasuredatanamountequaltolifetimeECLs.ECLsonthesefinancialassetsareestimatedusingaprovisionmatrixbasedontheGroup’shistoricalcreditlossexperience,adjustedforfactorsthatarespecifictothedebtorsandanassessmentofboththecurrentandforecastgeneraleconomicconditionsatthebalancesheetdate.Forassetsotherthanaccountsreceivablethatmeetoneofthefollowingconditions,lossallowancearemeasuredatanamountequalto12-monthECLs.Forallotherfinancialinstruments,theGrouprecognisesalossallowanceequaltolifetimeECLs:
-Ifthefinancialinstrumentisdeterminedtohavelowcreditriskatthebalancesheetdate;-Ifthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.FinancialinstrumentsthathavelowcreditriskThecreditriskonafinancialinstrumentisconsideredlowifthefinancialinstrumenthasalowriskofdefault,theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandadversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.SignificantincreasesincreditriskInassessingwhetherthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofdefaultoccurringonthefinancialinstrumentassessedatthebalancesheetdatewiththatassessedatthedateofinitialrecognition.WhendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognitionandwhenestimatingECL,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort,includingforward-lookinginformation.Inparticular,thefollowinginformationistakenintoaccount:
-failuretomakepaymentsofprincipalorinterestontheircontractuallyduedates;-anactualorexpectedsignificantdeteriorationinafinancialinstrument’sexternalorinternal
creditrating(ifavailable);-anactualorexpectedsignificantdeteriorationintheoperatingresultsofthedebtor;and-existingorforecastchangesinthetechnological,market,economicorlegalenvironmentthathaveasignificantadverseeffectonthedebtor’sabilitytomeetitsobligationtotheGroup.Dependingonthenatureofthefinancialinstruments,theassessmentofasignificantincreaseincreditriskisperformedoneitheranindividualbasisoracollectivebasis.Whentheassessmentisperformedonacollectivebasis,thefinancialinstrumentsaregroupedbasedonsharedcreditriskcharacteristics,suchaspastduestatusandcreditriskratings.TheGroupassumesthatthecreditriskonafinancialassethasincreasedsignificantlyifitismorethan30dayspastdue.
Credit-impairedfinancialassetsAteachbalancesheetdate,theGroupassesseswhetherfinancialassetscarriedatamortisedcostanddebtinvestmentsatFVOCIarecredit-impaired.Afinancialassetis‘credit-impaired’whenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowsofthefinancialassethaveoccurred.Evidencethatafinancialassetiscredit-impairedincludesthefollowingobservabledata:
-significantfinancialdifficultyoftheborrowerorissuer;-abreachofcontract,suchasadefaultordelinquencyininterestorprincipalpayments;-foreconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficulty,theGroup
havinggrantedtotheborroweraconcessionthatwouldnototherwiseconsider;-itisprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;or-thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancial
difficulties.PresentationofallowanceforECLECLsareremeasuredateachbalancesheetdatetoreflectchangesinthefinancialinstrument’screditrisksinceinitialrecognition.AnychangeintheECLamountisrecognisedasanimpairmentgainorlossinprofitorloss.TheGrouprecognisesanimpairmentgainorlossforallfinancialinstrumentswithacorrespondingadjustmenttotheircarryingamountthroughalossallowanceaccount,exceptfordebtinvestmentsthataremeasuredatFVOCI,forwhichthelossallowanceisrecognisedinothercomprehensiveincome.Write-offThegrosscarryingamountofafinancialassetiswrittenoff(eitherpartiallyorinfull)totheextentthatthereisnorealisticprospectofrecovery.Awrite-offconstitutesaderecognitionevent.ThisisgenerallythecasewhentheGroupdeterminesthatthedebtordoesnothaveassetsorsourcesofincomethatcouldgeneratesufficientcashflowstorepaytheamountssubjecttothewrite-off.However,financialassetsthatarewrittenoffcouldstillbesubjecttoenforcementactivitiesinordertocomplywiththeGroup’sproceduresforrecoveryofamountsdue.Subsequentrecoveriesofanassetthatwaspreviouslywrittenoffarerecognisedasareversalofimpairmentinprofitorlossintheperiodinwhichtherecoveryoccurs.
(7)Equityinstrument
Theconsiderationreceivedfromtheissuanceofequityinstrumentsnetoftransactioncostsisrecognisedinshareholders’equity.ConsiderationandtransactioncostspaidbytheCompanyforrepurchasingself-issuedequityinstrumentsaredeductedfromshareholders’equity.WhentheCompanyrepurchasesitsownshares,thosesharesaretreatedastreasuryshares.Allexpenditurerelatingtotherepurchaseisrecordedinthecostofthetreasuryshares,withthetransactionrecordingintheshareregister.Treasurysharesareexcludedfromprofitdistributionsandarepresentedasadeductionundershareholders’equityinthebalancesheet.
10Inventories
(1)Classificationandcost
Inventoriesincluderawmaterials,workinprogressandreusablematerials.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpenditureincurredinbringingtheinventoriestotheirpresentlocationandcondition.Inadditiontothepurchasecostofrawmaterials,workinprogressandfinishedgoodsincludedirectlabourcostsandanappropriateallocationofproductionoverheads.AgriculturalproductsharvestedarereportedinaccordancewiththeCASNo.1-Inventories.
(2)Measurementmethodofcostofinventories
Costofinventoriesiscalculatedusingtheweightedaveragemethod.Consumablesincludinglow-valueconsumablesandpackagingmaterialsareamortisedwhentheyareused.Theamortisationchargeisincludedinthecostoftherelatedassetsorrecognisedinprofitorlossforthecurrentperiod.
(3)Basisfordeterminingthenetrealisablevalueandmethodforprovisionforobsolete
inventoriesAtthebalancesheetdate,inventoriesarecarriedatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Thenetrealisablevalueofmaterialsheldforuseintheproductionismeasuredbasedonthenetrealisablevalueofthefinishedgoodsinwhichtheywillbeincorporated.Thenetrealisablevalueoftheinventoryheldtosatisfysalesorservicecontractsismeasuredbasedonthecontractprice,totheextentofthequantitiesspecifiedinsalescontracts,andtheexcessportionofinventoriesismeasuredbasedongeneralsellingprices.Anyexcessofthecostoverthenetrealisablevalueofeachitemofinventoriesisrecognisedasaprovisionforimpairment,andisrecognisedinprofitorloss.
(4)Inventorycountsystem
TheGroupmaintainsaperpetualinventorysystem.
11Long-termequityinvestments
(1)Investmentcostoflong-termequityinvestments
(a)Long-termequityinvestmentsacquiredthroughabusinesscombination
-Theinitialcostofalong-termequityinvestmentacquiredthroughabusinesscombinationinvolvingentitiesundercommoncontrolistheCompany’sshareofthecarryingamountofthesubsidiary’sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountoftheconsiderationgivenisadjustedtothesharepremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.Foralong-termequityinvestmentinasubsidiaryacquiredthroughabusinesscombinationachievedinstageswhichdonotformabundledtransactionandinvolvingentitiesundercommoncontrol,theCompanydeterminestheinitialcostoftheinvestmentinaccordancewiththeabovepolicies.Thedifferencebetweenthisinitialcostandthesumofthecarryingamountofpreviously-heldinvestmentandtheconsiderationpaidforthesharesnewlyacquiredisadjustedtocapitalpremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.-Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinitialcostcomprisestheaggregateofthefairvalueofassetstransferred,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheCompany,inexchangeforcontroloftheacquiree.Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingentitiesundercommoncontrolandachievedthroughmultipletransactionsinstageswhichdonotformabundledtransaction,theinitialcostcomprisesthecarryingamountofthepreviously-heldequityinvestmentintheacquireeimmediatelybeforetheacquisitiondate,andtheadditionalinvestmentcostattheacquisitiondate.(b)Long-termequityinvestmentsacquiredotherthanthroughabusinesscombination
-Along-termequityinvestmentacquiredotherthanthroughabusinesscombinationisinitiallyrecognisedattheamountofcashpaidiftheGroupacquirestheinvestmentbycash,oratthefairvalueoftheequitysecuritiesissuedifaninvestmentisacquiredbyissuingequitysecurities.
(2)Subsequentmeasurementoflong-termequityinvestment
(a)Investmentsinsubsidiaries
IntheCompany’sseparatefinancialstatements,long-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodunlesstheinvestmentisclassifiedasheldforsale(SeeNoteIII.28).Exceptforcashdividendsorprofitdistributionsdeclaredbutnotyetdistributedthathavebeenincludedinthepriceorconsiderationpaidinobtainingtheinvestments,theCompanyrecognisesitsshareofthecashdividendsorprofitdistributionsdeclaredbytheinvesteeasinvestmentincomeforthecurrentperiod.Theinvestmentsinsubsidiariesarestatedinthebalancesheetatcostlessaccumulatedimpairmentlosses.
Fortheimpairmentoftheinvestmentsinsubsidiaries,refertoNoteIII.20.IntheGroup’sconsolidatedfinancialstatements,subsidiariesareaccountedforinaccordancewiththepoliciesdescribedinNoteIII.6.(b)Investmentinjointventuresandassociates
AjointventureisanarrangementwherebytheGroupandotherpartieshavejointcontrol(seeNoteIII.11(3))andrightstothenetassetsofthearrangement.AssociatedenterprisesrefertoenterprisestowhichtheGroupcanexercisesignificantinfluence(seeNoteIII.11(3)).Along-termequityinvestmentinajointventureisaccountedforusingtheequitymethodforsubsequentmeasurement,unlesstheinvestmentisclassifiedasheldforsale(seeNoteIII.28).TheaccountingtreatmentsundertheequitymethodadoptedbytheGroupareasfollows:
-Wheretheinitialcostofalong-termequityinvestmentexceedstheGroup’sinterest
inthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedatcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedattheinvestor’sshareofthefairvalueoftheinvestee’sidentifiablenetassets,andthedifferenceisrecognisedinprofitorloss.-Aftertheacquisitionoftheinvestment,theGrouprecognisesitsshareoftheinvestee’sprofitorlossandothercomprehensiveincomeasinvestmentincomeorlossesandothercomprehensiveincomerespectively,andadjuststhecarryingamountoftheinvestmentaccordingly.Oncetheinvesteedeclaresanycashdividendsorprofitdistributions,thecarryingamountoftheinvestmentisreducedbytheamountattributabletotheGroup.ChangesintheGroup’sshareoftheinvestee’sowners’equity,otherthanthosearisingfromtheinvestee’snetprofitorloss,othercomprehensiveincomeorprofitdistribution(referredtoas“otherchangesinowners’equity”),isrecogniseddirectlyintheGroup’sequity,andthecarryingamountoftheinvestmentisadjustedaccordingly.-Incalculatingitsshareoftheinvestee’snetprofitsorlosses,othercomprehensive
incomeandotherchangesinowners’equity,theGrouprecognisesinvestmentincomeandothercomprehensiveincomeaftermakingappropriateadjustmentstoaligntheaccountingpoliciesoraccountingperiodswiththoseoftheGroupbasedonthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition.UnrealisedprofitsandlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedtotheextentoftheGroup’sinterestintheassociatesorjointventures.UnrealisedlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedinthesamewayasunrealisedgainsbutonlytotheextentthatthereisnoimpairment.
-TheGroupdiscontinuesrecognisingitsshareoffurtherlossesoftheinvesteeafter
thecarryingamountofthelong-termequityinvestmentandanylong-terminterestthatinsubstanceformspartoftheGroup’snetinvestmentintheassociateisreducedtozero,excepttotheextentthattheGrouphasanobligationtoassumeadditionallosses.Ifthejointventuresubsequentlyreportsnetprofits,theGroupresumesrecognisingitsshareofthoseprofitsonlyafteritsshareoftheprofitsequalstheshareoflossesnotrecognised.Fortheimpairmentoftheinvestmentsinjointventuresandassociates,refertoNoteIII.20.
(3)Criteriafordeterminingtheexistenceofjointcontroloveraninvestee
Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivities(activitieswithsignificantimpactonthereturnsofthearrangement)requiretheunanimousconsentofthepartiessharingcontrol.ThefollowingfactorsareusuallyconsideredwhenassessingwhethertheGroupcanexercisejointcontroloveraninvestee:
-Whethernosingleparticipantpartyisinapositiontocontroltheinvestee’srelatedactivitiesunilaterally;-Whetherstrategicdecisionsrelatingtotheinvestee’srelatedactivitiesrequirethe
unanimousconsentofallparticipantpartiesthatsharingofcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofaninvesteebutdoesnothavecontrolorjointcontroloverthosepolicies.12Investmentproperties
Investmentpropertiesarepropertiesheldeithertoearnrentalincomeorforcapitalappreciationorforboth.Investmentpropertiesareaccountedforusingthecostmodelandstatedinthebalancesheetatcostlessaccumulateddepreciation,amortisationandimpairmentlosses,andadoptsadepreciationoramortisationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights,unlesstheinvestmentpropertyisclassifiedasheldforsale(seeNoteIII.28).Fortheimpairmentoftheinvestmentproperties,refertoNoteIII.20.
Category
| Category | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
13Fixedassets
(1)Recognitionoffixedassets
FixedassetsrepresentthetangibleassetsheldbytheGroupforuseinproductionofgoods,supplyofservices,forrentalorforadministrativepurposeswithusefullivesoveroneaccountingyear.
Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relatedtaxes,andanydirectlyattributableexpenditureforbringingtheassettoworkingconditionforitsintendeduse.Thecostofself-constructedassetsismeasuredinaccordancewiththepolicysetoutinNoteIII.14.WherethepartsofanitemoffixedassetshavedifferentusefullivesorprovidebenefitstotheGroupinadifferentpattern,thusnecessitatinguseofdifferentdepreciationratesormethods,eachpartisrecognisedasaseparatefixedasset.AnysubsequentcostsincludingthecostofreplacingpartofanitemoffixedassetsarerecognisedasassetswhenitisprobablethattheeconomicbenefitsassociatedwiththecostswillflowtotheGroup,andthecarryingamountofthereplacedpartisderecognised.Thecostsoftheday-to-daymaintenanceoffixedassetsarerecognisedinprofitorlossasincurred.Fixedassetsarestatedinthebalancesheetatcostlessaccumulateddepreciationandimpairmentlosses.
(2)Depreciationoffixedassets
Thecostofafixedasset,lessitsestimatedresidualvalueandaccumulatedimpairmentlosses,isdepreciatedusingthestraight-linemethodoveritsestimatedusefullife,unlessthefixedassetisclassifiedasheldforsale(seeNoteIII.28).Theestimatedusefullives,residualvalueratesanddepreciationratesofeachclassoffixedassetsareasfollows:
Class
| Class | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
| Machineryequipment | 5-30years | 0-5% | 3.2%-20.0% |
| Motorvehicles | 4-12years | 0-5% | 7.9%-25.0% |
Usefullives,estimatedresidualvaluesanddepreciationmethodsarereviewedatleastateachyear-end.
(3)Fortheimpairmentofthefixedassets,refertoNoteIII.20.
(4)Disposaloffixedassets
Thecarryingamountofafixedassetisderecognised:
-whenthefixedassetisholdingfordisposal;or-whennofutureeconomicbenefitisexpectedtobegeneratedfromitsuseordisposal.Gainsorlossesarisingfromtheretirementordisposalofanitemoffixedassetaredeterminedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheitem,andarerecognisedinprofitorlossonthedateofretirementordisposal.
14Constructioninprogress
Thecostofself-constructedassetsincludesthecostofmaterials,directlabour,capitalisedborrowingcosts(seeNoteIII.15),andanyothercostsdirectlyattributabletobringingtheassettoworkingconditionforitsintendeduse.Aself-constructedassetisclassifiedasconstructioninprogressandtransferredtofixedassetwhenitisreadyforitsintendeduse.Nodepreciationisprovidedagainstconstructioninprogress.Constructioninprogressisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.20).15Borrowingcosts
Borrowingcostsincurreddirectlyattributabletotheacquisition,andconstructionorproductionofaqualifyingassetarecapitalisedaspartofthecostoftheasset.Otherborrowingcostsarerecognisedasfinancialexpenseswhenincurred.Duringthecapitalisationperiod,theamountofinterest(includingamortisationofanydiscountorpremiumonborrowing)tobecapitalisedineachaccountingperiodisdeterminedasfollows:
-Wherefundsareborrowedspecificallyfortheacquisitionandconstructionorproductionofaqualifyingasset,theamountofinteresttobecapitalisedistheinterestexpensecalculatedusingeffectiveinterestratesduringtheperiodlessanyinterestincomeearnedfromdepositingtheborrowedfundsoranyinvestmentincomeonthetemporaryinvestmentofthosefundsbeforebeingusedontheasset.-TotheextentthattheGroupborrowsfundsgenerallyandusesthemfortheacquisitionand
constructionorproductionofaqualifyingasset,theamountofborrowingcostseligibleforcapitalisationisdeterminedbyapplyingacapitalisationratetotheweightedaverageoftheexcessamountsofcumulativeexpenditureontheassetovertheaboveamountsofspecificborrowings.Thecapitalisationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Theeffectiveinterestrateisdeterminedastheratethatexactlydiscountsestimatedfuturecashflowthroughtheexpectedlifeoftheborrowingor,whenappropriate,ashorterperiodtotheinitiallyrecognisedamountoftheborrowings.Duringthecapitalisationperiod,exchangedifferencesrelatedtotheprincipalandinterestonaspecific-purposeborrowingdenominatedinforeigncurrencyarecapitalisedaspartofthecostofthequalifyingasset.Theexchangedifferencesrelatedtotheprincipalandinterestonforeigncurrencyborrowingsotherthanaspecific-purposeborrowingarerecognisedasafinancialexpensewhenincurred.
Thecapitalisationperiodistheperiodfromthedateofcommencementofcapitalisationofborrowingcoststothedateofcessationofcapitalisation,excludinganyperiodoverwhichcapitalisationissuspended.Capitalisationofborrowingcostscommenceswhenexpenditurefortheassetisbeingincurred,borrowingcostsarebeingincurredandactivitiesofacquisition,constructionorproductionthatarenecessarytopreparetheassetforitsintendeduseareinprogress,andceaseswhentheassetsbecomereadyfortheirintendeduse.Capitalisationofborrowingcostsshouldceasewhenthequalifyingassetbeingconstructedorproducedhasreacheditsexpectedusableorsaleablecondition.Capitalisationofborrowingcostsissuspendedwhentheacquisition,constructionorproductionactivitiesareinterruptedabnormallyforaperiodofmorethanthreemonths.
16.Biologicalassets
TheGroup'sbiologicalassetsarebearerbiologicalassets.Bearerbiologicalassetsarethosethatareheldforthepurposesofproducingagriculturalproduce,renderingofservicesorrental.BearerbiologicalassetsintheGrouparevines.Bearerbiologicalassetsareinitiallymeasuredatcost.Thecostofself-grownorself-bredbearerbiologicalassetsrepresentsthenecessarydirectlyattributableexpenditureincurredbeforesatisfyingtheexpectedproductionandoperatingpurpose,includingcapitalisedborrowingcosts.Bearerbiologicalassets,afterreachingtheexpectedproductionandoperatingpurpose,aredepreciatedusingthestraight-linemethodoveritsestimatedusefullife.Theestimatedusefullives,estimatednetresidualvalueratesanddepreciationratesofbearerbiologicalassetsareasfollows:
Category
| Category | Estimatedusefullife(years) | Estimatednetresidualvaluerate | Depreciationrate(%) |
| Vines | 20years | 0% | 5.0% |
TheGroupevaluatestheusefullifeandexpectednetsalvagevaluebyconsideringthenormalproducinglifeofthebearerbiologicalassets.Usefullives,estimatedresidualvaluesanddepreciationmethodsofbearerbiologicalassetsarereviewedatleastateachyear-end.Anychangesshouldbetreatedaschangesinaccountingestimates.Forabearerbiologicalassetthathasbeensold,damaged,deadordestroyed,anydifferencebetweenthedisposalproceedsandthecarryingamountoftheassetshouldberecognisedinprofitorlossfortheperiodinwhichitarises.17Intangibleassets
Intangibleassetsarestatedinthebalancesheetatcostlessaccumulatedamortization(wheretheestimatedusefullifeisfinite)andimpairmentlosses(seeNoteIII.20).Foranintangibleassetwithfiniteusefullife,itscostestimatedlessresidualvalueandaccumulatedimpairmentlossesisamortisedonthestraight-linemethodoveritsestimatedusefullife,unlesstheintangibleassetisclassifiedasheldforsale(seeNoteIII.28).
Therespectiveamortisationperiodsforintangibleassetsareasfollows:
Item
| Item | Amortisationperiod(years) |
| Landuserights | 40-50years |
| Softwarelicenses | 5-10years |
| Trademarks | 10years |
Usefullivesandamortisationmethodsofintangibleassetwithfiniteusefullifearereviewedatleastateachyear-end.AnintangibleassetisregardedashavinganindefiniteusefullifeandisnotamortisedwhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Atthebalancesheetdate,theGrouphadintangibleassetswithinfiniteusefullivesincludingthelanduserightsandtrademarks.LanduserightswithinfiniteusefullivesarepermanentlanduserightswithpermanentownershipheldbytheGroupundertherelevantChileandAustralianlawsarisingfromtheGroup’sacquisitionofVi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSPA.(collectivelyreferredtoasthe"ChileIndomitaWineGroup"),andtheacquisitionofKilikanoonEstatePtyLtd.(hereinafterreferredtoasthe"AustraliaKilikanoonEstate"),thereforetherewasnoamortisation.TherighttousetrademarkreferstothetrademarkheldbytheGrouparisingfromtheacquisitionoftheChileIndomitaWineGroupandtheAustraliaKilikanoonEstatewithinfiniteusefullives.Thevaluationoftrademarkwasbasedonthetrendsinthemarketandcompetitiveenvironment,productcycle,andmanaginglong-termdevelopmentstrategy.ThosebasisindicatedthetrademarkwillprovidenetcashflowstotheGroupwithinanuncertainperiod.TheusefullifeisindefiniteasitwashardtopredicttheperiodthatthetrademarkwouldbringeconomicbenefitstotheGroup.18Goodwill
Theinitialcostofgoodwillrepresentstheexcessofcostofacquisitionovertheacquirer’sinterestinthefairvalueoftheidentifiablenetassetsoftheacquireeunderabusinesscombinationnotinvolvingentitiesundercommoncontrol.Goodwillisnotamortisedandisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.20).Ondisposalofanassetgrouporasetofassetgroups,anyattributablegoodwilliswrittenoffandincludedinthecalculationoftheprofitorlossondisposal.19Long-termdeferredexpenses
Long-termdeferredexpensesareamortisedusingastraight-linemethodwithinthebenefitperiod.Therespectiveamortisationperiodsforsuchexpensesareasfollows:
| Item | Amortisationperiod |
| Landrequisitionfee | 50years |
| Landleaseprepayment | 50years |
| Greeningfee | 5-20years |
| Leaseholdimprovement | 3-5years |
| Others | 3years |
20Impairmentofassetsotherthaninventoriesandfinancialassets
Thecarryingamountsofthefollowingassetsarereviewedateachbalancesheetdatebasedoninternalandexternalsourcesofinformationtodeterminewhetherthereisanyindicationofimpairment:
-fixedassets-constructioninprogress-right-of-useassets-intangibleassets-bearerbiologicalassets-investmentpropertiesmeasuredusingacostmodel-long-termequityinvestments-goodwill-long-termdeferredexpenses,etc.Ifanyindicationexists,therecoverableamountoftheassetisestimated.Inaddition,theGroupestimatestherecoverableamountsofgoodwillandintangibleassetswithinfiniteusefullivesateachyear-end,irrespectiveofwhetherthereisanyindicationofimpairment.Goodwillisallocatedtoeachassetgroup,orsetofassetgroups,thatisexpectedtobenefitfromthesynergiesofthecombinationforthepurposeofimpairmenttesting.Therecoverableamountofanasset(orassetgroup,setofassetgroups)isthehigherofitsfairvalue(seeNoteIII.21)lesscoststosellanditspresentvalueofexpectedfuturecashflows.Anassetgroupiscomposedofassetsdirectlyrelatedtocash-generationandisthesmallestidentifiablegroupofassetsthatgeneratescashinflowsthatarelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Thepresentvalueofexpectedfuturecashflowsofanassetisdeterminedbydiscountingthefuturecashflows,estimatedtobederivedfromcontinuinguseoftheassetandfromitsultimatedisposal,totheirpresentvalueusinganappropriatepre-taxdiscountrate.Animpairmentlossisrecognisedinprofitorlosswhentherecoverableamountofanassetislessthanitscarryingamount.Aprovisionforimpairmentoftheassetisrecognisedaccordingly.Impairmentlossesrelatedtoanassetgrouporasetofassetgroupsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheassetgrouporsetofassetgroups,andthentoreducethecarryingamountoftheotherassetsintheassetgrouporsetofassetgroupsonaproratabasis.However,suchallocationwouldnotreducethecarryingamountofanassetbelowthehighestofitsfairvaluelesscoststosell(ifmeasurable),itspresentvalueofexpectedfuturecashflows(ifdeterminable)andzero.Onceanimpairmentlossisrecognised,itisnotreversedinasubsequentperiod.21Fairvaluemeasurement
Unlessotherwisespecified,theGroupmeasuresfairvalueasfollows:
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.
Whenmeasuringfairvalue,theGrouptakesintoaccountthecharacteristicsoftheparticularassetorliability(includingtheconditionandlocationoftheassetandrestrictions,ifany,onthesaleoruseoftheasset)thatmarketparticipantswouldconsiderwhenpricingtheassetorliabilityatthemeasurementdate,andusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataandotherinformationareavailabletomeasurefairvalue.Valuationtechniquesmainlyincludethemarketapproach,theincomeapproachandthecostapproach.22Revenuerecognition
RevenueisthegrossinflowofeconomicbenefitsarisinginthecourseoftheGroup’sordinaryactivitieswhentheinflowsresultinincreaseinshareholders’equity,otherthanincreaserelatingtocontributionsfromshareholders.RevenueisrecognisedwhentheGroupsatisfiestheperformanceobligationinthecontractbytransferringthecontroloverrelevantgoodsorservicestothecustomers.Whereacontracthastwoormoreperformanceobligations,theGroupdeterminesthestand-alonesellingpriceatcontractinceptionofthedistinctgoodorserviceunderlyingeachperformanceobligationinthecontractandallocatesthetransactionpriceinproportiontothosestand-alonesellingprices.TheGrouprecognisesasrevenuetheamountofthetransactionpricethatisallocatedtoeachperformanceobligation.Thestand-alonesellingpriceisthepriceatwhichtheGroupwouldsellapromisedgoodorserviceseparatelytoacustomer.Ifastand-alonesellingpriceisnotdirectlyobservable,theGroupconsidersallinformationthatisreasonablyavailabletotheentity,maximisestheuseofobservableinputstoestimatethestand-alonesellingprice.Forthecontractwithawarranty,theGroupanalysesthenatureofthewarrantyprovided,ifthewarrantyprovidesthecustomerwithadistinctserviceinadditiontotheassurancethattheproductcomplieswithagreed-uponspecifications,theGrouprecognisesforthepromisedwarrantyasaperformanceobligation.Otherwise,theGroupaccountsforthewarrantyinaccordancewiththerequirementsofCASNo.13–Contingencies.ThetransactionpriceistheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdparties.TheGrouprecognisesthetransactionpriceonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.Wherethecontractcontainsasignificantfinancingcomponent,theGrouprecognisesthetransactionpriceatanamountthatreflectsthepricethatacustomerwouldhavepaidforthepromisedgoodsorservicesifthecustomerhadpaidcashforthosegoodsorserviceswhen(oras)theytransfertothecustomer.Thedifferencebetweentheamountofpromisedconsiderationandthecashsellingpriceisamortisedusinganeffectiveinterestmethodoverthecontractterm.TheGroupdoesnotadjusttheconsiderationforanyeffectsofasignificantfinancingcomponentifitexpects,atcontractinception,thattheperiodbetweenwhentheGrouptransfersapromisedgoodorservicetoacustomerandwhenthecustomerpaysforthatgoodorservicewillbeoneyearorless.
TheGroupsatisfiesaperformanceobligationovertimeifoneofthefollowingcriteriaismet;orotherwise,aperformanceobligationissatisfiedatapointintime:
-thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheGroup’s
performanceastheGroupperforms;-thecustomercancontroltheassetcreatedorenhancedduringtheGroup’sperformance;or-theGroup’sperformancedoesnotcreateanassetwithanalternativeusetoitandthe
Grouphasanenforceablerighttopaymentforperformancecompletedtodate.Forperformanceobligationsatisfiedovertime,theGrouprecognisesrevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation.Whentheoutcomeofthatperformanceobligationcannotbemeasuredreasonably,buttheGroupexpectstorecoverthecostsincurredinsatisfyingtheperformanceobligation,theGrouprecognisesrevenueonlytotheextentofthecostsincurreduntilsuchtimethatitcanreasonablymeasuretheoutcomeoftheperformanceobligation.Forperformanceobligationsatisfiedatapointintime,theGrouprecognisesrevenueatthepointintimeatwhichthecustomerobtainscontrolofrelevantgoodsorservices.Todeterminewhetheracustomerhasobtainedcontrolofgoodsorservices,theGroupconsidersthefollowingindicators:
-theGrouphasapresentrighttopaymentforthegoodsorservices;-theGrouphastransferredphysicalpossessionofthegoodstothecustomer;-theGrouphastransferredthelegaltitleofthegoodsorthesignificantrisksandrewardsof
ownershipofthegoodstothecustomer;and-thecustomerhasacceptedthegoodsorservices.Forthesaleofaproductwitharightofreturn,theGrouprecognisesrevenuewhentheGroupobtainscontrolofthatproduct,intheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortheproducttransferred(i.e.excludingtheamountofwhichexpectedtobereturned),andrecognisesarefundliabilityfortheproductsexpectedtobereturned.Meanwhile,anassetisrecognisedintheamountofcarryingamountoftheproductexpectedtobereturnedlessanyexpectedcoststorecoverthoseproducts(includingpotentialdecreasesinthevalueofreturnedproducts),andcarryforwardtocostintheamountofcarryingamountofthetransferredproductslesstheabovecosts.Attheendofeachreportingperiod,theGroupupdatesitsassessmentoffuturesalesreturn.Ifthereisanychange,itisaccountedforasachangeinaccountingestimate.AcontractassetistheGroup’srighttoconsiderationinexchangeforgoodsorservicesthatithastransferredtoacustomerwhenthatrightisconditionalonsomethingotherthanthepassageoftime.TheGrouprecogniseslossallowancesforexpectedcreditlossoncontractassets(seeNoteIII.9(6)).AccountsreceivableistheGroup’srighttoconsiderationthatisunconditional(onlythepassageoftimeisrequired).AcontractliabilityistheGroup’sobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer.ThefollowingisthedescriptionofaccountingpoliciesregardingrevenuefromtheGroup’sprincipalactivities:
TheGroup'ssalesrevenueismainlyderivedfromdealersales.RevenueisrecognisedwhentheGrouptransferscontroloftherelatedproductstothecustomer.Basedonthebusinesscontract,theGrouprecognisedthesalesrevenueofthesetransferswhentheproductisconfirmedandsignedforacceptancebythecustomers.
23Contractcosts
Contractcostsareeithertheincrementalcostsofobtainingacontractwithacustomerorthecoststofulfilacontractwithacustomer.IncrementalcostsofobtainingacontractarethosecoststhattheGroupincurstoobtainacontractwithacustomerthatitwouldnothaveincurredifthecontracthadnotbeenobtainede.g.anincrementalsalescommission.TheGrouprecognisesasanassettheincrementalcostsofobtainingacontractwithacustomerifitexpectstorecoverthosecosts.Othercostsofobtainingacontractareexpensedwhenincurred.Ifthecoststofulfilacontractwithacustomerarenotwithinthescopeofinventoriesorotheraccountingstandards,theGrouprecognisesanassetfromthecostsincurredtofulfilacontractonlyifthosecostsmeetallofthefollowingcriteria:
-thecostsrelatedirectlytoanexistingcontractortoaspecificallyidentifiableanticipatedcontract,includingdirectlabour,directmaterials,allocationsofoverheads(orsimilarcosts),coststhatareexplicitlychargeabletothecustomerandothercoststhatareincurredonlybecausetheGroupenteredintothecontract-thecostsgenerateorenhanceresourcesoftheGroupthatwillbeusedinsatisfying(orin
continuingtosatisfy)performanceobligationsinthefuture;and-thecostsareexpectedtoberecovered.Assetsrecognisedfortheincrementalcostsofobtainingacontractandassetsrecognisedforthecoststofulfilacontract(the“assetsrelatedtocontractcosts”)areamortisedonasystematicbasisthatisconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetsrelateandrecognisedinprofitorlossforthecurrentperiod.TheGrouprecognisestheincrementalcostsofobtainingacontractasanexpensewhenincurrediftheamortisationperiodoftheassetthattheentityotherwisewouldhaverecognisedisoneyearorless.TheGrouprecognisesanimpairmentlossinprofitorlosstotheextentthatthecarryingamountofanassetrelatedtocontractcostsexceeds:
-remainingamountofconsiderationthattheGroupexpectstoreceiveinexchangeforthe
goodsorservicestowhichtheassetrelates;less-thecoststhatrelatedirectlytoprovidingthosegoodsorservicesthathavenotyetbeen
recognisedasexpenses.24Employeebenefits
(1)Short-termemployeebenefits
Employeewagesorsalaries,bonuses,socialsecuritycontributionssuchasmedicalinsurance,workinjuryinsurance,maternityinsuranceandhousingfund,measuredattheamountincurredoraccuredattheapplicablebenchmarksandrates,arerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
(2)Post-employmentbenefits–definedcontributionplans
PursuanttotherelevantlawsandregulationsofthePeople’sRepublicofChina,theGroupparticipatedinadefinedcontributionbasicpensioninsuranceplaninthesocialinsurancesystemestablishedandmanagedbygovernmentorganisations.TheGroupmakescontributionstobasicpensioninsuranceplansbasedontheapplicablebenchmarksandratesstipulatedbythegovernment.Basicpensioninsurancecontributionspayablearerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
(3)Terminationbenefits
WhentheGroupterminatestheemploymentwithemployeesbeforetheemploymentcontractsexpire,orprovidescompensationunderanoffertoencourageemployeestoacceptvoluntaryredundancy,aprovisionisrecognisedwithacorrespondingexpenseinprofitorlossattheearlierofthefollowingdates:
-WhentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemployeeterminationplanoracurtailmentproposal;-WhentheGrouphasaformaldetailedrestructuringplaninvolvingthepaymentof
terminationbenefitsandhasraisedavalidexpectationinthoseaffectedthatitwillcarryouttherestructuringbystartingtoimplementthatplanorannouncingitsmainfeaturestothoseaffectedbyit.25Governmentgrants
Governmentgrantsarenon-reciprocaltransfersofmonetaryornon-monetaryassetsfromthegovernmenttotheGroupexceptforcapitalcontributionsfromthegovernmentinthecapacityasaninvestorintheGroup.AgovernmentgrantisrecognisedwhenthereisreasonableassurancethatthegrantwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtothegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasuredatfairvalue.GovernmentgrantsrelatedtoassetsaregrantswhoseprimaryconditionisthattheGroupqualifyingforthemshouldpurchase,constructorotherwiseacquirelong-termassets.Governmentgrantsrelatedtoincomearegrantsotherthanthoserelatedtoassets.Agovernmentgrantrelatedtoanassetisrecognisedasdeferredincomeandamortisedovertheusefullifeoftherelatedassetonareasonableandsystematicmannerasotherincomeornon-operatingincome.AgrantthatcompensatestheCompanyforexpensesorlossestobeincurredinthefutureisrecognisedasdeferredincome,andincludedinotherincomeornon-operatingincomeintheperiodsinwhichtheexpensesorlossesarerecognised.Orincludedinotherincomeornon-operatingincomedirectly.26Incometax
Currenttaxanddeferredtaxarerecognisedinprofitorlossexcepttotheextentthattheyrelatetoabusinesscombinationoritemsrecogniseddirectlyinequity(includingothercomprehensiveincome).
Currenttaxistheexpectedtaxpayablecalculatedattheapplicabletaxrateontaxableincomefortheyear,plusanyadjustmenttotaxpayableinrespectofpreviousyears.Atthebalancesheetdate,currenttaxassetsandliabilitiesareoffsetonlyiftheGrouphasalegallyenforceablerighttosetthemoffandalsointendseithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.Deferredtaxassetsanddeferredtaxliabilitiesarisefromdeductibleandtaxabletemporarydifferencesrespectively,beingthedifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheirtaxbases,whichincludethedeductiblelossesandtaxcreditscarriedforwardtosubsequentperiods.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilised.Deferredtaxisnotrecognisedforthetemporarydifferencesarisingfromtheinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusinesscombinationandthataffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Deferredtaxisnotrecognisedfortaxabletemporarydifferencesarisingfromtheinitialrecognitionofgoodwill.Atthebalancesheetdate,deferredtaxismeasuredbasedonthetaxconsequencesthatwouldfollowfromtheexpectedmannerofrecoveryorsettlementofthecarryingamountsoftheassetsandliabilities,usingtaxratesenactedatthebalancesheetdatethatareexpectedtobeappliedintheperiodwhentheassetisrecoveredortheliabilityissettled.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate,andisreducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitswillbeutilised.Suchreductionisreversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitswillbeavailable.Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesareoffsetifallofthefollowingconditionsaremet:
-thetaxableentityhasalegallyenforceablerighttooffsetcurrenttaxliabilitiesandcurrenttaxassets;-theyrelatetoincometaxesleviedbythesametaxauthorityoneither:
-thesametaxableentity;or-differenttaxableentitieswhichintendeithertosettlethecurrenttaxliabilitiesandcurrenttaxassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesordeferredtaxassetsareexpectedtobesettledorrecovered.27Leases
Acontractisleaseifthelessorconveystherighttocontroltheuseofanidentifiedassettolesseeforaperiodoftimeinexchangeforconsideration.Atinceptionofacontract,theGroupassesseswhetheracontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.
Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedasset,theGroupassesseswhether:
-thecontractinvolvestheuseofanidentifiedasset.Anidentifiedassetmaybespecified
explicitlyorimplicitlyspeiciedinacontratandshouldbephysicallydistinct,orcapacityportionorotherportionofanassetthatisnotphysicallydistinctbutitrepresentssubstantiallyallofthecapacityoftheassetandtherebyprovidesthecustomerwiththerighttoobtainsubstantiallyalloftheecomonicbenefitsfromtheuseoftheasset.Ifthesupplierhasasubstantivesubstitutionrightthroughouttheperiodofuse,thentheassetisnotidentified;-thelesseehastherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseofthe
assetthroughouttheperiodofuse;-thelesseehastherighttodirecttheuseoftheasset.Foracontractthatcontainsmoreseparateleasecomponets,thelesseeandthelessorseparateleasecomponentsandaccountforeachleasecomponentasaleaseseparately.Foracontractthatcontainsleaseandnon-leasecomponents,thelesseeandthelessorseparateleasecomponentsfromnon-leasecomponents.Foracontractthatcontainsleaseandnon-leasecomponents,thelesseeallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentandtheaggregatestand-alonepriceofthenon-leasecomponents.ThelessorallocatestheconsiderationinthecontractinaccordancewiththeaccountingpolicyinNoteIII.22.
(1)Asalessee
TheGrouprecognisesaright-of-useassetandaleaseliabilityattheleasecommencementdate.Theright-of-useassetisinitiallymeasuredatcost,whichcomprisestheinitialamountoftheleaseliability,anyleasepaymentsmadeatorbeforethecommencementdate(lessanyleaseincentivesreceived),anyinitialdirectcostsincurredandanestimateofcoststodismantleandremovetheunderlyingassetortorestorethesiteonwhichitislocatedorrestoretheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.
Theright-of-useassetisdepreciatedusingthestraight-linemethod.Ifthelesseeis
reasonablycertaintoexerciseapurchaseoptionbytheendoftheleaseterm,theright-of-useassetisdepreciatedovertheremainingusefullivesoftheunderlyingasset.Otherwise,theright-of-useassetisdepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetortheendoftheleaseterm.Impairmentlossesofright-of-useassetsareaccountedforinaccordancewiththeaccountingpolicydescribedinNoteIII.20.Theleaseliabilityisinitiallymeasuredatthepresentvalueoftheleasepaymentsthatarenotpaidatthecommencementdate,discountedusingtheinterestrateimplicitintheleaseor,ifthatratecannotbereadilydetermined,theGroup’sincrementalborrowingrate.
Aconstantperiodicrateisusedtocalculatetheinterestontheleaseliabilityineachperiodduringtheleasetermwithacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.Variableleasepaymentsnotincludedinthemeasurementoftheleaseliabilityischargedtoprofitorlossorincludedinthecostofassetswhereappropriateasincurred.
Underthefollowingcircumstancesafterthecommencementdate,theGroupremeasuresleaseliabilitiesbasedonthepresentvalueofrevisedleasepayments:
-thereisachangeintheamountsexpectedtobepayableunderaresidualvalueguarantee;-thereisachangeinfutureleasepaymentsresultingfromachangeinanindexorarateusedtodeterminethosepayments;-thereisachangeintheassessmentofwhethertheGroupwillexerciseapurchase,
extensionorterminationoption,orthereisachangeintheexerciseoftheextensionorterminationoption.
Whentheleaseliabilityisremeasured,acorrespondingadjustmentismadetothecarryingamountoftheright-of-useasset,orisrecordedinprofitorlossifthecarryingamountoftheright-of-useassethasbeenreducedtozero.TheGrouphaselectednottorecogniseright-of-useassetsandleaseliabilitiesforshort-termleasesthathavealeasetermof12monthsorlessandleasesoflow-valueassets.TheGrouprecognisestheleasepaymentsassociatedwiththeseleasesinprofitorlossorasthecostoftheassetswhereappropriateusingthestraight-linemethodovertheleaseterm.
(2)Asalessor
TheGroupdeterminesatleaseinceptionwhethereachleaseisafinanceleaseoranoperatinglease.Aleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingassetirrespectiveofwhetherthelegaltitletotheassetiseventuallytransferred.Anoperatingleaseisaleaseotherthanafinancelease.WhentheGroupisasub-lessor,itassessestheleaseclassificationofasub-leasewithreferencetotheright-of-useassetarisingfromtheheadlease,notwithreferencetotheunderlyingasset.Ifaheadleaseisashort-termleasetowhichtheGroupappliespracticalexpedientdescribedabove,thenitclassifiesthesub-leaseasanoperatinglease.Underafinancelease,atthecommencementdate,theGrouprecognisesthefinanceleasereceivableandderecognisesthefinanceleaseasset.Thefinanceleasereceivableisinitiallymeasuredatanamountequaltothenetinvestmentinthelease.Thenetinvestmentintheleaseismeasuredattheaggregateoftheunguaranteedresidualvalueandthepresentvalueoftheleasereceivablethatarenotreceivedatthecommencementdate,discountedusingtheinterestrateimplicitinthelease.TheGrouprecognisesfinanceincomeovertheleaseterm,basedonapatternreflectingaconstantperiodicrateofreturn.ThederecognitionandimpairmentofthefinanceleasereceivablearerecognisedinaccordancewiththeaccountingpolicyinNoteIII.9.Variableleasepaymentsnotincludedinthemeasurementofnetinvestmentintheleasearerecognisedasincomeastheyareearned.Leasereceiptsfromoperatingleasesisrecognisedasincomeusingthestraight-linemethodovertheleaseterm.Theinitialdirectcostsincurredinrespectoftheoperatingleaseareinitiallycapitalisedandsubsequentlyamortisedinprofitorlossovertheleasetermonthesamebasisastheleaseincome.Variableleasepaymentsnotincludedinleasereceiptsarerecognisedasincomeastheyareearned.
28Assetsheldforsale
TheGroupclassifiedanon-currentassetordisposalgroupasheldforsalewhenthecarryingamountofanon-currentassetordisposalgroupwillberecoveredthroughasaletransactionratherthanthroughcontinuinguse.Adisposalgroupreferstoagroupofassetstobedisposedof,bysaleorotherwise,togetherasawholeinasingletransactionandliabilitiesdirectlyassociatedwiththoseassetsthatwillbetransferredinthetransaction.Anon-currentassetordisposalgroupisclassifiedasheldforsalewhenallthefollowingcriteriaaremet:
-Accordingtothecustomarypracticesofsellingsuchassetordisposalgroupinsimilar
transactions,thenon-currentassetordisposalgroupmustbeavailableforimmediatesaleintheirpresentconditionsubjecttotermsthatareusualandcustomaryforsalesofsuchassetsordisposalgroups;-Itssaleishighlyprobable,thatis,theGrouphasmadearesolutiononasaleplanandhas
obtainedafirmpurchasecommitment.Thesaleistobecompletedwithinoneyear.Non-currentassetsordisposalgroupsheldforsalearestatedatthelowerofcarryingamountandfairvalue(seeNoteIII.21)lesscoststosell(exceptfinancialassets(seeNoteIII.9),deferredtaxassets(seeNoteIII.26)andinvestmentpropertiessubsequentmeasuredatfairvalue(seeNoteIII.12)initiallyandsubsequently.Anyexcessofthecarryingamountoverthefairvalue(seeNoteIII.21)lesscoststosellisrecognisedasanimpairmentlossinprofitorloss.29Profitdistributions
Dividendsorprofitdistributionsproposedintheprofitappropriationplan,whichwillbeapprovedafterthebalancesheetdate,arenotrecognisedasaliabilityatthebalancesheetdatebutaredisclosedinthenotesseparately.30Relatedparties
Ifapartyhasthepowertocontrol,jointlycontrolorexercisesignificantinfluenceoveranotherparty,orviceversa,orwheretwoormorepartiesaresubjecttocommoncontrolorjointcontrolfromanotherparty,theyareconsideredtoberelatedparties.Relatedpartiesmaybeindividualsorenterprises.EnterpriseswithwhichtheCompanyisundercommoncontrolonlyfromtheStateandthathavenootherrelatedpartyrelationshipsarenotregardedasrelatedparties.Inadditiontotherelatedpartiesstatedabove,theCompanydeterminesrelatedpartiesbasedonthedisclosurerequirementsofAdministrativeProceduresontheInformationDisclosuresofListedCompaniesissuedbytheCSRC.
31Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparklingwineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup'sinternalorganisationstructure,managementrequirementsandinternalreportingsystem,theGroup'soperationisdividedintofiveparts:China,Spain,France,ChileandAustralia.Themanagementperiodicallyevaluatessegmentresults,inordertoallocateresourcesandevaluateperformances.In2021,over87%ofrevenue,morethan94%ofprofitandover92%ofnon-currentassetsderivedfromChina/arelocatedinChina.ThereforetheGroupdoesnotneedtodiscloseadditionalsegmentreportinformation.32Significantaccountingestimatesandjudgements
Thepreparationofthefinancialstatementsrequiresmanagementtomakeestimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Estimatesaswellasunderlyingassumptionsanduncertaintiesinvolvedarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.
(1)Significantaccountingestimates
Exceptforaccountingestimatesrelatingtodepreciationandamortisationofassetssuchasinvestmentproperties,fixedassets,bearerbiologicalassetsandintangibleassets(seeNotesIII.13and16)andprovisionforimpairmentofvarioustypesofassets(seeNotesV.3,7,11,15and16).Othersignificantaccountingestimatesareasfollows:
(i)NoteV.18-Recognitionofdeferredtaxasset;(ii)NoteVIII.-Fairvaluemeasurementsoffinancialinstruments.33Changesinsignificantaccountingpoliciesandaccountingestimates
(1)Descriptionandreasonsofchangesinaccountingpolicies
In2021,theGrouphasadoptedthefollowingnewlyrevisedaccountingstandardsandimplementationguidanceandillustrativeexamplesissuedbytheMOF:
-CASNo.21-Lease(Revised)(Caikuai[2018]No.35)(“thenewleasesstandard”)-TheAccountingTreatmentofCOVID-19-RelatedRentConcessions(Caikuai[2020]No.10)andNoticeofExtendingtheApplicablePeriodof‘AccountingTreatmentofCOVID-19RelatedRentConcessions’(Caikuai[2021]No.9)-CASBulletinNo.14(Caikuai[2021]No.1)(“BulletinNo.14”)(a)Newleasesstandard
NewleasesstandardhasrevisedCASNo.21-LeasesissuedbytheMOFin2006(“previousleasesstandard”).TheGrouphasappliednewleasesstandardsince1January2021andhasadjustedtherelatedaccountingpolicies.Newleasesstandardrefinesthedefinitionofalease.TheGroupassesseswhetheracontractisorcontainsaleaseinaccordancewiththedefinitioninnewleasesstandard.Forcontractswhichexistedbeforethedateofinitialapplication,theGrouphaselectednottoreassesswhetheracontractisorcontainsaleaseatthedateofinitialapplication.
?AsalesseeUnderpreviousleasesstandard,theGroupclassifiesleasesasoperatingorfinanceleasesbasedonitsassessmentofwhethertheleasetransferssignificantlyalloftherisksandrewardsincidentaltoownershipoftheunderlyingassettotheGroup.Undernewleasesstandard,theGroupnolongerdistinguishesbetweenoperatingleasesandfinanceleases.TheGrouprecognisesright-of-useassetsandleaseliabilitiesforallleases(exceptforshort-termleasesandleasesoflow-valueassetswhichareaccountedforusingthepracticalexpedient).Foracontractthatcontainsleaseandnon-leasecomponents,theGroupallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentandtheaggregatestand-alonepriceofthenon-leasecomponents.TheGrouphaselectedtorecognisethecumulativeeffectofadoptingnewleasesstandardasanadjustmenttotheopeningbalancesofretainedearningsandotherrelateditemsinthefinancialstatementsintheinitialyearofapplication.Comparativeinformationhasnotbeenrestated.Forleasesclassifiedasoperatingleasesbeforethedateofinitialapplication,leaseliabilitiesweremeasuredatthepresentvalueoftheremainingleasepayments,discountedusingtheGroup’sincrementalborrowingrateatthedateofinitialapplication.Right-of-useassetsaremeasuredateither:
-theircarryingamountasifnewleasesstandardhadbeenappliedsincethe
commencementdate,discountedusingtheGroup’sincrementalborrowingrateatthedateofinitialapplication;orTheGroupusesthefollowingpracticalexpedientstoaccountforleasesclassifiedasoperatingleasesbeforethedateofinitialapplication:
-accountedfortheleasesforwhichtheleasetermendswithin12monthsofthe
dateofinitialapplicationasshort-termleases;-appliedasinglediscountratetoleaseswithsimilarcharacteristicswhen
measuringleaseliabilities;-excludedinitialdirectcostsfrommeasuringtheright-of-useassets;-determinedtheleasetermaccordingtotheactualimplementationorother
updatesofoptionsbeforethedateofinitialapplicationifthecontractcontains
optionstoextendorterminatethelease;-Asanalternativetotheimpairmenttestoftheright-of-useassets,theright-of-use
assetsshallbeadjustedaccordingtotheamountoflossprovisionfromonerous
contractsincludedinthebalancesheetinaccordancewithAccountingStandards
forBusinessEnterprisesNo.13-Contingenciesbeforethedateofinitial
application;-Noretrospectiveadjustmentshallbemadetotheleasechangesthatoccurred
beforethebeginningoftheyearwhenthenewleasesstandardisinitiallyapplied,
andinstead,thenewleasesstandardshallbeapplicablefortheaccounting
treatmentbasedonthefinalarrangementoftheleasechanges.
Forleasesclassifiedasfinanceleasesbeforethedateofinitialapplication,theright-of-useassetandtheleaseliabilityaremeasuredattheoriginalcarryingamountoftheassetsunderfinanceleaseandobligationsunderfinanceleasesatthedateofinitialapplication.?Asalessor
TheGroupisnotrequiredtomakeanyadjustmentstotheopeningbalancesofretainedearningsandotherrelateditemsinthefinancialstatementsintheinitialyearofapplicationandsurplusforleasesforwhichitactsasalessor.TheGrouphasappliednewleasesstandardsincethedateofinitialapplication.?Effectoftheapplicationofnewleasesstandardsince1January2021onfinancialstatementsWhenmeasuringleaseliabilities,theGroupdiscountedleasepaymentsusingitsincrementalborrowingrateat1January2021.Theweighted-averagerateappliedbytheGroupandtheCompanyis4.65%.Theimpactoftheadoptionofthenewleasesstandardontheconsolidatedandcompanybalancesheetsasat1January2021aresummarisedasfollows:
TheGroup
| TheGroup | |||
| 31December2020 | 1January2021 | Theamountsofadjustments | |
| Assets | |||
| Non-currentassets: | |||
| Right-of-useassets | - | 130,293,427 | 130,293,427 |
| Long-termdeferredexpenses | 314,465,855 | 273,547,599 | (40,918,256) |
| Deferredtaxassets | 206,241,275 | 207,199,400 | 958,125 |
| Totalnon-currentassets | 520,707,130 | 611,040,426 | 90,333,296 |
| Totalassets | 520,707,130 | 611,040,426 | 90,333,296 |
TheGroup
| TheGroup | |||
| 31December2020 | 1January2021 | Theamountsofadjustments | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities: | |||
| Accountspayable | 484,347,958 | 479,305,382 | (5,042,576) |
| Non-currentliabilitiesduewithinoneyear | 133,311,890 | 140,629,742 | 7,317,852 |
| Totalcurrentliabilities | 617,659,848 | 619,935,124 | 2,275,276 |
| Non-currentliabilities: | |||
| Leaseliabilities | - | 98,401,900 | 98,401,900 |
| Deferredtaxliabilities | 12,022,613 | 12,260,894 | 238,281 |
| Totalnon-currentliabilities | 12,022,613 | 110,662,794 | 98,640,181 |
| Totalliabilities | 629,682,461 | 730,597,918 | 100,915,457 |
| Shareholders’equity: | |||
| Retainedearnings | 8,714,091,755 | 8,703,509,594 | (10,582,161) |
| TotalequityattributabletoshareholdersoftheCompany | 8,714,091,755 | 8,703,509,594 | (10,582,161) |
| Totalowners’equity | 8,714,091,755 | 8,703,509,594 | (10,582,161) |
| Totalliabilitiesandshareholders’equity | 9,343,774,216 | 9,434,107,512 | 90,333,296 |
TheCompany
| TheCompany | |||
| 31December2020 | 1January2021 | Theamountsofadjustments | |
| Assets | |||
| Non-currentassets: | |||
| Right-of-useassets | - | 39,589,486 | 39,589,486 |
| Totalnon-currentassets | - | 39,589,486 | 39,589,486 |
| Totalassets | - | 39,589,486 | 39,589,486 |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities: | |||
| Non-currentliabilitiesduewithinoneyear | - | 2,048,380 | 2,048,380 |
| Totalcurrentliabilities | - | 2,048,380 | 2,048,380 |
| Non-currentliabilities: | |||
| Leaseliabilities | - | 44,072,819 | 44,072,819 |
| Deferredtaxliabilities | - | 88,555 | 88,555 |
| Totalnon-currentliabilities | - | 44,161,374 | 44,161,374 |
| Totalliabilities | - | 46,209,754 | 46,209,754 |
| Shareholders’equity: | |||
| Retainedearnings | 8,567,313,551 | 8,560,693,283 | (6,620,268) |
| TotalequityattributabletoshareholdersoftheCompany | 8,567,313,551 | 8,560,693,283 | (6,620,268) |
| Totalowners’equity | 8,567,313,551 | 8,560,693,283 | (6,620,268) |
| Totalliabilitiesandshareholders’equity | 8,567,313,551 | 8,606,903,037 | 39,589,486 |
(b)Caikuai[2020]No.10andCaikuai[2021]No.9
TheAccountingTreatmentofCOVID-19RelatedRentConcessions(Caikuai[2020]No.10)providespracticalexpedientundercertainconditionsforrentconcessionsoccurringasadirectconsequenceoftheCOVID-19pandemic.Ifthecompanychoosestoadoptthepracticalexpedient,thenthereisnoneedtoassesswhetherthereisaleasechangeorreassesstheleaseclassification.IncombinationoftherequirementsofCaikuai[2021]No.9,suchpracticalexpedientisonlyapplicabletoanyreductioninleasepaymentsduebefore30June2022.Cumulativeeffectsofadoptingtheaboveregulationsareadjustedtotheopeningretainedearningsorothercomprehensiveincomefortheyear2021.Comparativeinformationisnotrestated.TheadoptionoftheaboveregulationsdoesnothavesignificanteffectonthefinancialpositionandfinancialperformanceoftheGroup.(c)BulletinNo.14
BulletinNo.14takeseffecton26January2021(implementationdate).(i)“Public-privatepartnership”(PPP)arrangements
BulletinNo.14andtheQ&AandpracticalexamplesforaccountingtreatmentofPPPprojectcontractsocialcapitalclarifiesthefeaturesandconditionsofPPParrangements,setsouttheaccountinganddisclosurerequirementsofaprivateentityinPPParrangements.Item5ofCASBulletinNo.2(Caikuai[2008]No.11)on“Howtoaccountforentitiesparticipatinginpublicinfrastructureconstructionbusinessesunderbuild-operate-transferarrangement”isrepealedaccordingly.
PPParrangementswhicharecommencedbefore31December2020andnotcompletedontheimplementationdateandnewPPParrangementsoccurredduring1January2021totheimplementationdatearesubjecttoretrospectiveadjustments.Cumulativeeffectsareadjustedtotheopeningretainedearningsandotherrelevantlineitemsinthefinancialstatementsfortheyear2021.Comparativeinformationisnotrestated.TheadoptionofBulletinNo.14doesnothavesignificanteffectonthefinancialpositionandfinancialperformanceoftheGroup.(ii)Benchmarkinterestratereform
BulletinNo.14introducestheaccountinganddisclosurerequirementsforthemodificationoffinancialinstrumentsandleaseliabilitiesresultingfromthebenchmarkinterestratereform.Transactionsrelatedtothebenchmarkinterestratereformthatoccurredbefore31December2020andduring1January2021totheimplementationdatearesubjecttoretrospectiveadjustments.Cumulativeeffectsareadjustedtotheopeningretainedearningsorothercomprehensiveincomefortheyear2021.Comparativeinformationisnotrestated.TheadoptionofBulletinNo.14doesnothavesignificanteffectonthefinancialpositionandfinancialperformanceoftheGroup.IV.Taxation1Maintypesoftaxesandcorrespondingtaxrates
Value-addedtax
(VAT)
| Value-addedtax(VAT) | OutputVATiscalculatedonproductsalesandtaxableservicesrevenue.ThebasisforVATpayableistodeductinputVATfromtheoutputVATfortheperiod | 13%,9%,6%(China),20%(France),21%(Spain),19%(Chile)and10%(Australia) |
| Consumptiontax | Basedontaxablerevenue | 10%oftheprice,20%ofthepriceandRMB1,000eachton(China) |
| Urbanmaintenanceandconstructiontax | BasedonVATpaid | 7%(China) |
| Corporateincometax | Basedontaxableprofits | 25%(China),26.5%(France,2021),28%(France,2020),28%(Spain),27%(Chile),30%(Australia) |
OtherthantaxincentivesstatedinNoteIV.2,applicabletaxratesoftheGroupin2021and2020areallstatedasabove.
2Taxpreferentialtreatments
NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinNingxiaHuizuAutonomousRegion.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,NingxiaGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuGrapeGrowingCo.,Ltd.(“GrapeGrowing”),abranchoftheCompany,whoseprincipalactivityisgrapegrowingisincorporatedinZhifuDistrict,YantaiCity,ShandongProvince.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,GrapeGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”),abranchoftheCompany,isanenterpriseengagedingrapegrowingintheEconomicandTechnologicalDevelopmentZoneofYantaiCity,ShandongProvince.PursuanttoArticle27oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandArticle86oftheImplementationRegulationsoftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,R&DCentreenjoysthepreferentialpolicyofexemptionofenterpriseincometaxonincomefromgrapegrowing.BeijingChangyuAFIPAgricultureDevelopmentCo.,Ltd(“AgricultureDevelopment”),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinMiyun,Beijing.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,AgricultureDevelopmentenjoysanexemptionofcorporateincometax.XinjiangTianzhuWineCo.,Ltd.(“XinjiangTianzhu”),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),NingxiaChateauChangyuMoserisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom1January2021to31December2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),NingxiaChateauChangyuMoserisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom1January2021to31December2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.
NingxiaChateauChangyuMoserXVCo.,Ltd.(“ChateauNingxia”),asubsidiaryoftheCompany,isanenterpriseengagedinwineproductionandsales,incorporatedinShiheziCity,XinjiangUygurAutonomousRegion.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),NingxiaChateauChangyuMoserisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom1January2021to31December2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”),asubsidiaryoftheCompany,isanenterpriseengagedinwineproductionandsales,incorporatedinShiheziCity,XinjiangUygurAutonomousRegion.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),Changyu(Ningxia)Wineisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom1January2021to31December2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.PursuanttotheAnnouncementonTaxPoliciestoSupportPreventionandControlofCovid-19Pandemic(Announcement[2020]No.8oftheMinistryofFinanceandtheStateAdministrationofTaxation),from1January2020,incomederivedbytaxpayersfromprovisionofpublictransportationservicesandlivingservices,aswellasexpressdeliveryservicesinvolvingresidents'necessities,shallbeexemptedfromVAT.Furthermore,accordingtotheAnnouncementonContinuedImplementationofSomePreferentialTax/FeePoliciesforRespondingtotheCOVID-19Pandemic(Announcement[2021]No.7oftheMinistryofFinanceandtheStateAdministrationofTaxation),theabovetaxpreferentialtaxpolicyisextendedto31March2021.TheCompanyhascertainsubsidiaries,suchasYantaiZhangyuWineCultureMuseumCo.,Ltd.("theMuseum"),whichprovidescatering,accommodation,tourismandotherlivingservices,so,theincomeobtainedfromtheprovisionofsuchlivingservicesshallbeexemptedfromVAT,from1January2020to31March2021.XinjiangChangyuSalesCo.,Ltd.VermouthTastingCentreBranch(“XinjiangVermouthTastingCentre”),asubsidiaryoftheCompany,isanenterpriseengagedinlarge-scalerestaurantservices,locatedinShiheziCity,XinjiangUygurAutonomousRegion.AccordingtotheAnnouncementonValue-addedTaxPoliciesforSupportingIndividualBusinessesinResumptionofBusiness(Announcement[2020]No.13oftheMinistryofFinanceandtheStateTaxationAdministration)andtheAnnouncementonContinuedImplementationofSomePreferentialTax/FeePoliciesforRespondingtotheCOVID-19Pandemic(Announcement[2021]No.7oftheMinistryofFinanceStateTaxationAdministration),XinjiangVermouthTastingCentre,qualifiedasasmall-scaleVATtaxpayer,isentitledtopayVATatthereducedlevyrateof1%fortheyearended31December2021.BasedontheNoticeoftheDepartmentofFinanceofShaanxiProvinceandtheShaanxiProvincialTaxationBureauundertheStateTaxationAdministrationonMattersConcerningtheReliefandExemptionofUrbanLandUseTaxandRealEstateTaxinFightingtheEpidemic(ShaanCaiShui[2020]No.4),theDepartmentofFinanceandtheTaxationBureaushallapprovetheapplicationfortaxreliefandexemptionsubmittedbytaxpayerswhohavedifficultiestopayurbanlandusetaxandrealestatetaxowingtothesuspensionofproductionandbusinessformorethan30days(inclusive)arisingfromtheepidemic.ShaanxiChateauChangyuRenaCo.,Ltd.andChangyu(Jingyang)WineCo.,Ltd.,twosubsidiariesoftheCompany,meettheapplicationrequirementsandwillbeexemptedfromrealestatetaxandurbanlandusetaxinthefirstquarterof2020.
PursuanttotheNoticeoftheTaxationBureauinNingxiaHuiAutonomousRegionundertheStateTaxationAdministrationandtheDepartmentofFinanceinNingxiaHuiAutonomousRegiononImplementingthePoliciesofRealEstateTaxandUrbanLandUseTaxbythePeople’sGovernmentinAutonomousRegioninresponsetotheimpactfromCovid-19Epidemic(NingShuiHan[2020]No.19),theTaxationBureaushallapprovetheapplicationfortaxreliefsubmittedbyenterprisesthathavedifficultiestopayrealestatetaxandurbanlandusetaxowingtotheepidemic.ShaanxiChateauChangyuRenaCo.,Ltd.andChangyu(Ningxia)WineCo.,Ltd.,twosubsidiariesoftheCompany,meettheapplicationrequirementsandwillbeexemptedfromrealestatetaxandurbanlandusetaxforfivemonthsin2020.V.Notestotheconsolidatedfinancialstatements1Cashatbankandonhand
Item
| Item | 2021 | 2020 |
| Cashonhand | 71,486 | 19,637 |
| Bankdeposits | 1,558,134,072 | 1,128,882,937 |
| Othermonetaryfunds | 8,890,435 | 65,312,355 |
| Total | 1,567,095,993 | 1,194,214,929 |
| Including:Totaloverseasdeposits | 28,691,521 | 47,674,019 |
Asat31December2021,thebalanceofrestrictedcashoftheGroupisasfollows:
| Item | 2021 | 2020 |
| Housemaintenancefunds | 2,678,529 | 2,684,407 |
Asat31December2021,theGroup’stermdepositswithpreviousmaturityofmorethanthreemonthsisRMB53,200,000withinterestrate1.75%-2.25%(31December2020:
RMB73,553,062).Asat31December2021,theGroup’sothermonetaryassetsisasfollows:
| Item | 2021 | 2020 |
| YantaiChangyuPioneerWineCompanyLimitedResearchandDevelopmentCo.,Ltd.(“R&DCentre”)pledgeddepositforlong-termpayables | - | 20,000,000 |
| Depositsforlettersofcredit | 7,900,850 | 44,540,850 |
| Alipayaccountbalance | 859,558 | 761,505 |
| DepositforICBCplatform | 10,000 | 10,000 |
| Depositsforthecustoms | 120,027 | - |
| Total | 8,890,435 | 65,312,355 |
Asat31December2021,theGroupdidnothaveanyspecialinterestarrangementssuchastheestablishmentofjointfundmanagementaccountswithrelatedparties.
2Billsreceivable
Classificationofbillsreceivable
Item
| Item | 2021 | 2020 |
| Bankacceptancebills | 42,827,666 | - |
| Total | 42,827,666 | - |
Alloftheabovebillsareduewithinoneyear.3Accountsreceivable
(1)Accountsreceivablebycustomertypeareasfollows:
| Type | 31December2021 | 31December2020 |
| Amountsduefromrelatedparties | 287,788 | 2,268,311 |
| Amountsduefromothercustomers | 310,982,372 | 193,911,657 |
| Sub-total | 311,270,160 | 196,179,968 |
| Less:Provisionforbadanddoubtfuldebts | (20,263,750) | (12,326,606) |
| Total | 291,006,410 | 183,853,362 |
Asat31December2021,ownershiprestrictedaccountsreceivableisRMB49,061,015(31
December2020:RMB28,557,991),referringtoNoteV.52.
(2)Theageinganalysisofaccountsreceivableisasfollows:
| Ageing | 2021 | 2020 |
| Within1year(inclusive) | 302,602,474 | 190,047,491 |
| Over1yearbutwithin2years(inclusive) | 6,450,290 | 5,581,750 |
| Over2yearsbutwithin3years(inclusive) | 1,830,913 | 366,053 |
| Over3years | 386,483 | 184,674 |
| Sub-total | 311,270,160 | 196,179,968 |
| Less:Provisionforbadanddoubtfuldebts | (20,263,750) | (12,326,606) |
| Total | 291,006,410 | 183,853,362 |
Theageingiscountedstartingfromthedatewhenaccountsreceivablearerecognised.
(3)Accountsreceivablebyprovisioningmethod
AtalltimestheGroupmeasurestheimpairmentlossforaccountsreceivableatanamount
equaltolifetimeECLs,andtheECLsarebasedonthenumberofoverduedaysandtheloss
givendefault.AccordingtothehistoricalexperienceoftheGroup,therearenosignificant
differencesinthelossesofdifferentcustomergroups.Therefore,differentcustomergroups
arenotfurtherdistinguishedwhencalculatingimpairmentlossbasedontheoverdue
information.
2021
Lossgivendefault
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.4% | 266,055,047 | 951,403 |
| Overduefor1to30days | 3.3% | 13,013,133 | 434,869 |
| Overduefor31to60days | 10.9% | 8,115,584 | 886,023 |
| Overduefor61to90days | 23.9% | 2,554,438 | 610,844 |
| Overduefor91to120days | 28.9% | 531,696 | 153,780 |
| Overduefor121to150days | 40.0% | 627,641 | 251,314 |
| Overduefor151to180days | 41.8% | 1,670,068 | 698,131 |
| Overduefor181to210days | 50.0% | 1,129,949 | 565,460 |
| Overduefor211to240days | 65.6% | 1,415,345 | 928,263 |
| Overduefor241to270days | 65.7% | 3,439,721 | 2,261,159 |
| Overduefor271to300days | 85.4% | 1,340,055 | 1,145,021 |
| Overduefor301to330days | 100.0% | 638,848 | 638,848 |
| Overduefor331to360days | 100.0% | 244,178 | 244,178 |
| Overduefor360days | 100.0% | 10,494,457 | 10,494,457 |
| Total | 6.5% | 311,270,160 | 20,263,750 |
2020
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.4% | 146,425,314 | 650,298 |
| Overduefor1to30days | 3.4% | 14,631,174 | 495,839 |
| Overduefor31to60days | 6.4% | 6,678,504 | 424,266 |
| Overduefor61to90days | 10.3% | 5,582,357 | 574,675 |
| Overduefor91to120days | 12.9% | 2,054,400 | 265,530 |
| Overduefor121to150days | 15.6% | 2,769,171 | 431,319 |
| Overduefor151to180days | 21.7% | 3,970,361 | 859,903 |
| Overduefor181to210days | 30.3% | 1,417,385 | 429,287 |
| Overduefor211to240days | 32.0% | 5,413,890 | 1,731,246 |
| Overduefor241to270days | 35.7% | 993,299 | 354,988 |
| Overduefor271to300days | 54.6% | 111,636 | 60,963 |
| Overduefor301to330days | 88.7% | 748,270 | 664,085 |
| Overduefor331to360days | 100.0% | 323,563 | 323,563 |
| Overduefor360days | 100.0% | 5,060,644 | 5,060,644 |
| Total | 6.3% | 196,179,968 | 12,326,606 |
Thelossgivendefaultismeasuredbasedontheactualcreditlossexperienceinthepast12months,andisadjustedtakingintoconsiderationthedifferencesamongtheeconomicconditionsduringthehistoricaldatacollectionperiod,thecurrenteconomicconditionsandtheeconomicconditionsduringtheexpectedlifetime.
(4)Movementsofprovisionsforbadanddoubtfuldebts:
2021
| 2021 | 2020 | |
| Balanceatthebeginningoftheyearafteradjustment | (12,326,606) | (16,674,915) |
| Chargefortheyear | (17,855,222) | (11,591,483) |
| Recoveriesorreversalsduringtheyear | 9,918,078 | 15,939,792 |
| Balanceattheendoftheyear | (20,263,750) | (12,326,606) |
(5)Fivelargestaccountsreceivablebydebtorattheendoftheyear:
| Name | RelationshipwiththeGroup | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Thirdparty | 101,943,773 | Within1year | 32.8% | 364,547 |
| DebtorTwo | Thirdparty | 8,935,591 | Within1year | 2.9% | 162,166 |
| DebtorThree | Thirdparty | 8,589,195 | Within1year | 2.8% | 2,381,463 |
| DebtorFour | Thirdparty | 7,028,678 | Within1year | 2.3% | 148,535 |
| DebtorFive | Thirdparty | 6,161,123 | Over1yearbutwithin2years | 2.0% | 6,082,785 |
| Total | 132,658,360 | 42.8% | 9,139,496 |
4Receivablesunderfinancing
| Item | Note | 2021 | 2020 |
| Billsreceivable | (1) | 364,457,497 | 338,090,187 |
(1)ThepledgedbillsreceivableoftheGroupattheendoftheyear:
Asat31December2021,therewasnopledgedbillsreceivable(31December2020:Nil).
(2)Outstandingderecognisedendorsedbillsthathavenotmaturedattheendoftheyear:
| Item | Amountderecognisedatyearend |
| Bankacceptancebills | 449,373,119 |
| Total | 449,373,119 |
Asat31December2021,derecognisedbillsendorsedbytheGrouptootherpartieswhicharenotyetdueattheendoftheperiodisRMB449,373,119(31December2020:
RMB260,721,441).Thenotesareusedforpaymenttosuppliersandconstructions.TheGroupbelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theGroupwouldundertakelimitedliabilityforthenotes.
5Prepayments
(1)Prepaymentsbycategory:
Item
| Item | 2021 | 2020 |
| Prepayments | 75,235,879 | 71,296,416 |
| Total | 75,235,879 | 71,296,416 |
(2)Theageinganalysisofprepaymentsisasfollows:
| Ageing | 2021 | 2020 | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within1year(inclusive) | 75,207,094 | 99.9% | 70,977,636 | 99.6% |
| Over1yearbutwithin2years(inclusive) | 28,785 | 0.1% | 318,780 | 0.4% |
| Total | 75,235,879 | 100.0% | 71,296,416 | 100.0% |
Theageingiscountedstartingfromthedatewhenprepaymentsarerecognised.
(3)Fivelargestprepaymentsbydebtorattheendoftheyear:
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Prepayments | 27,057,504 | Within1year | 36.0% | - |
| DebtorTwo | Prepayments | 23,934,593 | Within1year | 31.8% | - |
| DebtorThree | Prepayments | 5,813,616 | Within1year | 7.7% | - |
| DebtorFour | Prepayments | 2,311,027 | Within1year | 3.1% | - |
| DebtorFive | Prepayments | 1,743,620 | Within1year | 2.3% | - |
| Total | 60,860,360 | 80.9% | - |
6Otherreceivables
| 31December2021 | 31December2020 | |
| Others | 30,125,270 | 22,428,956 |
| Total | 30,125,270 | 22,428,956 |
(1)Interestreceivable
(a)Othersbycustomertype:
Customertype
| Customertype | 31December2021 | 31December2020 |
| Amountsduefromrelatedparties | 341,880 | 522,936 |
| Amountsduefromothercompanies | 29,783,390 | 21,906,020 |
| Sub-total | 30,125,270 | 22,428,956 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 30,125,270 | 22,428,956 |
(b)Theageinganalysisisasfollows:
| Ageing | 2021 | 2020 |
| Within1year(inclusive) | 27,191,986 | 10,738,225 |
| Over1yearbutwithin2years(inclusive) | 70,480 | 3,927,625 |
| Over2yearsbutwithin3years(inclusive) | 190,857 | 787,908 |
| Over3years | 2,671,947 | 6,975,198 |
| Sub-total | 30,125,270 | 22,428,956 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 30,125,270 | 22,428,956 |
Theageingiscountedstartingfromthedatewhenotherreceivablesarerecognised.(c)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2021,nobadanddoubtfuldebtprovisionwasmadeforother
receivables(31December2020:Nil).
Asat31December2021,theGrouphasnootherreceivableswrittenoff(31December
2020:Nil).(d)Otherscategorisedbynature
| Natureofotherreceivables | 2021 | 2020 |
| Deposit | 4,568,157 | 10,287,959 |
| RefundofconsumptiontaxandVAT | 7,204,557 | 8,254,195 |
| Pettycashreceivable | 252,481 | 124,878 |
| Landpurchasesandreservesreceivable | 11,550,000 | |
| Others | 6,550,075 | 3,761,924 |
| Sub-total | 30,125,270 | 22,428,956 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 30,125,270 | 22,428,956 |
(e)Fivelargestothers-bydebtorattheendoftheyear
Name
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Landpurchasesandreservesreceivable | 11,550,000 | Within1year | 38.3% | - |
| DebtorTwo | RefundofVAT | 5,995,042 | Within1year | 19.9% | - |
| DebtorThree | RefundofVAT | 1,209,515 | Within1year | 4.0% | - |
| DebtorFour | Deposits | 675,000 | Over1yearbutwithin2years | 2.2% | - |
| DebtorFive | Insurance | 602,705 | Within1year | 2.0% | - |
| Total | 20,032,262 | 66.4% | - |
7Inventories
(1)Inventoriesbycategory:
| Item | 2021 | 2020 | ||||
| Bookvalue | Provisionforimpairmentofinventories | Carryingamount | Bookvalue | Provisionforimpairmentofinventories | Carryingamount | |
| Rawmaterials | 245,114,403 | - | 245,114,403 | 70,165,666 | - | 70,165,666 |
| Workinprogress | 1,937,081,109 | - | 1,937,081,109 | 2,236,815,423 | - | 2,236,815,423 |
| Finishedgoods | 634,212,222 | (13,785,214) | 620,427,008 | 653,042,196 | (14,474,634) | 638,567,562 |
| Total | 2,816,407,734 | (13,785,214) | 2,802,622,520 | 2,960,023,285 | (14,474,634) | 2,945,548,651 |
(2)Provisionforimpairmentofinventories:
| Item | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Closingbalance |
| Recognised | Reversal | |||
| Finishedgoods | 14,474,634 | 13,785,214 | (14,474,634) | 13,785,214 |
8Othercurrentassets
| Item | 2021 | 2020 |
| Prepaidincometaxes | 16,697,663 | 16,087,815 |
| Inputtaxtobecredited | 198,516,812 | 215,812,506 |
| Deferredexpenses | 1,938,126 | 2,218,394 |
| Total | 217,152,601 | 234,118,715 |
9Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
Item
| Item | 2021 | 2020 |
| Investmentsinjointventures | 39,652,834 | 42,019,654 |
| Investmentsinassociates | 6,843,676 | 6,243,853 |
| Sub-total | 46,496,510 | 48,263,507 |
| Less:Provisionforimpairment | - | - |
| Total | 46,496,510 | 48,263,507 |
(2)Movementsoflong-termequityinvestmentsduringtheyearareasfollows:
| Investee | 2021Balanceatthebeginningoftheyear | Movementsduringtheyear | 2021Closingbalance | Shareholdingpercentage | |
| Increaseincapital | Lossesfrominvestmentsunderequity-method | ||||
| Jointventures | |||||
| SASL&MHoldings(“L&MHoldings”) | 42,019,654 | - | (2,366,820) | 39,652,834 | 55% |
| Associates | |||||
| WEMISS(Shanghai)EnterpriseDevelopmentCo.,Ltd(“WEMISSShanghai”) | 2,743,890 | - | (377,079) | 2,366,811 | 30% |
| YantaiSantaiRealEstateDevelopmentCo.,Ltd | 3,499,963 | - | 19,693 | 3,519,656 | 35% |
| ChengduYufengBrandManagementCo.,Ltd.(Note) | 518,000 | (36,528) | 481,472 | 10% | |
| YantaiGuolongWineIndustryCo.,Ltd.(Note) | 500,000 | (24,263) | 475,737 | 10% | |
| Sub-total | 6,243,853 | 1,018,000 | (418,177) | 6,843,676 | |
| Total | 48,263,507 | 1,018,000 | (2,784,997) | 46,496,510 | |
Note:TheGrouphasappointedonedirectortoeachoftheseinvestees.10Investmentproperties
| Buildingsandplants | |
| Cost | |
| Balanceasat31December2020and31December2021 | 70,954,045 |
| Accumulateddepreciation | |
| 31December2020 | (43,896,315) |
| Chargefortheyear | (2,555,472) |
| 31December2021 | (46,451,787) |
| Carryingamount | |
| 31December2021 | 24,502,258 |
| 31December2020 | 27,057,730 |
11Fixedassets
(1)Fixedassets
Item
| Item | Plant&buildings | Machinery&equipment | Motorvehicles | Total |
| Cost | ||||
| 31December2020 | 5,136,758,695 | 2,787,309,487 | 27,566,592 | 7,951,634,774 |
| Additionsduringtheyear | ||||
| -Purchases | 42,575,416 | 73,522,777 | 1,308,231 | 117,406,424 |
| -Transfersfromconstructioninprogress | 115,583,725 | 6,463,487 | - | 122,047,212 |
| Decreaseduringtheyear | - | - | - | - |
| Disposalsorwritten-offsduringtheyear | - | (46,386,188) | (1,692,947) | (48,079,135) |
| 31December2021 | 5,294,917,836 | 2,820,909,563 | 27,181,876 | 8,143,009,275 |
| Accumulateddepreciation | ||||
| 31December2020 | (892,581,856) | (1,294,646,448) | (21,992,597) | (2,209,220,901) |
| Chargefortheyear | (125,310,315) | (141,287,142) | (2,001,135) | (268,598,592) |
| Disposalsorwritten-offsduringtheyear | - | 38,769,695 | 1,385,864 | 40,155,559 |
| 31December2021 | (1,017,892,171) | (1,397,163,895) | (22,607,868) | (2,437,663,934) |
| Provisionforimpairment | ||||
| 31December2020 | - | (17,478,027) | - | (17,478,027) |
| Chargefortheyear | - | - | - | - |
| 31December2021 | - | (17,478,027) | - | (17,478,027) |
| Carryingamount | ||||
| 31December2021 | 4,277,025,665 | 1,406,267,641 | 4,574,008 | 5,687,867,314 |
| 31December2020 | 4,244,176,839 | 1,475,185,012 | 5,573,995 | 5,724,935,846 |
Asat31December2021,ownershiprestrictednetvalueoffixedassetsisRMB313,012,605(31December2020:RMB333,748,819),referringtoNoteV.52.
(2)Fixedassetsleasedoutunderoperatingleases
| Item | Cost | Accumulateddepreciation | Provisionforimpairment | Carryingamount |
| Buildings | 47,821,026 | (17,759,826) | - | 30,061,200 |
| Machineryequipment | 73,592,531 | (55,620,641) | (17,478,027) | 493,863 |
| Motorvehicles | 3,344,518 | (3,185,307) | - | 159,211 |
| Total | 124,758,075 | (76,565,774) | (17,478,027) | 30,714,274 |
(3)Fixedassetsleasedoutunderoperatingleases
| Item | Carryingamountattheendoftheyear |
| Machineryequipment | 8,627 |
(4)Fixedassetspendingcertificatesofownership
Item
| Item | Carryingamount | Reasonwhythecertificatesarepending |
| Dormitories,mainbuildingandreceptionbuildingofChanganChateau | 276,574,493 | Processing |
| Europeantown,mainbuildingandservicebuildingofChateauBeijing | 170,296,377 | Processing |
| FermentationshopandwarehouseofXinjiangTianzhu | 15,835,763 | Processing |
| OfficeandpackagingshopofGoldenIcewineValley | 9,073,335 | Processing |
| FermentationshopofZhangyu(Jingyang) | 5,101,910 | Processing |
| Office,experimentbuildingandworkshopofFermentationCentre | 3,147,779 | Processing |
| FinishedgoodswarehouseandworkshopofKylinPackaging | 2,124,816 | Processing |
| Others | 284,591 | Processing |
ThebuildingswithoutpropertycertificateabovehavenosignificantimpactontheGroup’smanagement.12Constructioninprogress
(1)Constructioninprogress
| Project | 2021 | 2020 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| R&DCentre(“ChangyuWineComplex”)Project | 577,328,351 | - | 577,328,351 | 589,010,299 | - | 589,010,299 |
| NingxiaChateauConstructionProject | 2,835,598 | - | 2,835,598 | 420,440 | - | 420,440 |
| SalesCompanyConstructionProject | - | - | - | 738,462 | - | 738,462 |
| ChanganChateauConstructionProject | 1,245,742 | - | 1,245,742 | 7,626,393 | - | 7,626,393 |
| ShiheziChateauConstructionProject | 1,028,512 | - | 1,028,512 | 5,000 | - | 5,000 |
| OtherCompanies’ConstructionProject | 7,733,896 | - | 7,733,896 | 37,694,558 | - | 37,694,558 |
| Total | 590,172,099 | - | 590,172,099 | 635,495,152 | - | 635,495,152 |
(2)Movementsofmajorconstructionprojectsinprogressduringtheyear
Item
| Item | Budget(RMBmillion) | Openingbalance | Additionsduringtheyear | Transferstofixedassets | Othertransfersout | Closingbalance | Percentageofactualcosttobudget(%) | Accumulatedcapitalisedinterest | Attributableto:Interestcapitalisedfortheyear | Interestrateforcapitalisationin2020(%) | Sourcesoffunding |
| ChangyuWineComplex | 4,506 | 589,010,299 | 102,663,881 | (114,345,829) | - | 577,328,351 | 82.2% | 17,155,308 | 945,185 | 1.2%and4.3% | Loansfromfinancialinstitutionsandself-raised |
| NingxiaChateauConstructionProject | 428 | 420,440 | 2,415,158 | - | - | 2,835,598 | 100.0% | Self-raised | |||
| ChanganChateauConstructionProject | 698 | 7,626,393 | 6,419,524 | (3,197,455) | (9,602,720) | 1,245,742 | 100.0% | Self-raised | |||
| ShiheziChateauConstructionProject | 780 | 5,000 | 2,662,193 | (1,638,681) | - | 1,028,512 | 96.7% | Self-raised |
13Bearerbiologicalassets
Bearerbiologicalassetsarevines,whichmeasuredincostmethod.
Item
| Item | Immaturebiologicalassets | Maturebiologicalassets | Total |
| Originalbookvalue | |||
| 31December2020 | 7,607,557 | 248,758,101 | 256,365,658 |
| Additionsduringtheyear | |||
| -Increaseincultivated | 17,215,775 | - | 17,215,775 |
| -Transferredtomature | (6,913,350) | 6,913,350 | - |
| Decreaseduringtheyear | - | (3,317,500) | (3,317,500) |
| 31December2021 | 17,909,982 | 252,353,951 | 270,263,933 |
| Accumulatedamortisation | |||
| 31December2020 | - | (64,192,122) | (64,192,122) |
| Chargefortheyear | - | (13,721,424) | (13,721,424) |
| Decreaseduringtheyear | - | 1,362,555 | 1,362,555 |
| 31December2021 | - | (76,550,991) | (76,550,991) |
| Carryingamount | |||
| 31December2021 | 17,909,982 | 175,802,960 | 193,712,942 |
| 31December2020 | 7,607,557 | 184,565,979 | 192,173,536 |
Asat31December2021,thereisnobiologicalassetwithownershiprestricted(31December2020:Nil).Asat31December2021,noprovisionforimpairmentofbiologicalassetoftheGroupwasrecognisedasthereisnoanyindicationexists(31December20120:Nil).14Leases
(1)Asalessee
Right-of-useassets
| Item | Plant&buildings | Lands | Others | Total |
| Cost | ||||
| Balanceatthebeginningoftheyear | 42,159,688 | 132,140,502 | 1,697,986 | 175,998,176 |
| Additionsduringtheyear | 15,209,132 | 5,839,907 | - | 21,049,039 |
| Balanceattheendoftheyear | 57,368,820 | 137,980,409 | 1,697,986 | 197,047,215 |
| Accumulateddepreciation | ||||
| Balanceatthebeginningoftheyear | (7,201,147) | (38,164,005) | (339,597) | (45,704,749) |
| Chargefortheyear | (10,697,382) | (5,736,448) | (339,597) | (16,773,427) |
| Balanceattheendoftheyear | (17,898,529) | (43,900,453) | (679,194) | (62,478,176) |
| Carryingamounts | ||||
| Attheendoftheyear | 39,470,291 | 94,079,956 | 1,018,792 | 134,569,039 |
| Atthebeginningoftheyear | 34,958,541 | 93,976,497 | 1,358,389 | 130,293,427 |
Leaseliabilities
Item
| Item | Note | 31December2021 | 1January2021 |
| Long-termleaseliabilities | 116,156,677 | 105,719,752 | |
| Less:leaseliabilitiesduewithinoneyear | V,27 | 14,345,089 | 7,317,852 |
| Total | 101,811,588 | 98,401,900 |
(2)Asalessor
Operatinglease
| Item | 2021 |
| Leaseincome | 2,015,486 |
15Intangibleassets
| Item | Landuserights | Softwarelicenses | Trademarks | Total |
| Originalbookvalue | ||||
| 31December2020 | 532,069,913 | 98,975,807 | 189,269,287 | 820,315,007 |
| Additionsduringtheyear | ||||
| -Purchase | 1,796,701 | 1,688,892 | 222,331 | 3,707,924 |
| -Transfersfromconstructioninprogress | (33,299,900) | - | - | (33,299,900) |
| 31December2021 | 500,566,714 | 100,664,699 | 189,491,618 | 790,723,031 |
| Accumulatedamortisation | ||||
| 31December2020 | (100,498,469) | (44,325,044) | (14,502,429) | (159,325,942) |
| Additionsduringtheyear | ||||
| -Chargefortheyear | (10,508,435) | (9,200,894) | (205,640) | (19,914,969) |
| Decreaseduringtheyear | 6,384,759 | - | - | 6,384,759 |
| 31December2021 | (104,622,145) | (53,525,938) | (14,708,069) | (172,856,152) |
| Carryingamount | ||||
| 31December2021 | 395,944,569 | 47,138,761 | 174,783,549 | 617,866,879 |
| 31December2020 | 431,571,444 | 54,650,763 | 174,766,858 | 660,989,065 |
Asat31December2021,theGrouphaslanduserightwithinfiniteusefullivesofRMB32,640,119(31December2020:RMB30,746,186),representingthefreeholdlandheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstateunderrelevantChileandAustralialaws,onwhichtheamortisationisnotrequired.
Asat31December2021,theGrouphastrademarkwithinfiniteusefullivesofRMB155,355,846(31December2020:RMB154,901,004),whichisheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstate.Therecoverableamountofthetrademarkisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflowsgeneratedfromtheassetgrouptowhichthesingleassetsoftrademarkrightbelongs.Themanagementpreparesthecashflowprojectionforfuture5years(the“projectingperiod”)basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the“subsequentperiod”).Thepretaxdiscountratesusedinthecashflowprojectionsare11.0%and12.8%,respectively.Akeyassumptionintheestimateoffuturecashflowsistherevenuegrowthrateintheprojectingperiod.SuchrevenuegrowthrateisdeterminedbasedontheindustryandtheexpectedgrowthrateofChileIndomitaWineGroupandAustraliaKilikanoonEstate.TheGrouprecognisesthetrademarkwithinfiniteusefullivesasintangibleassets,theimpairmentassessmentofwhichismadeattheendofeachreportingyear.Themanagementbelievesthatanyreasonablechangeoftheaboveassumptionswillnotresultinthetotalbookvalueoftheassetgrouptowhichthesingleassetsoftrademarkrightbelongsexceedingitsrecoverableamount.Accordingtotheresultofimpairmentassessment,bytheendof31December2021,themanagementbelievesthereisnoimpairmentlossonthosetrademarkswithinfiniteusefullivesoftheGroup.Asat31December2021,ownershiprestrictednetvalueofintangibleassetsisRMB201,345,477(31December2020:RMB206,920,456),referringtoNoteV.52.16Goodwill
(1)Changesingoodwill
Nameofinvesteeoreventsfrom
whichgoodwillarose
| Nameofinvesteeoreventsfromwhichgoodwillarose | Note | 31December2020 | Additionsduringtheyear | Disposalsduringtheyear | 31December2021 |
| Originalbookvalue | |||||
| EtablissementsRoulletFransac(“RoulletFransac”) | (a) | 13,112,525 | - | - | 13,112,525 |
| DicotPartners,S.L(“Dicot”) | (a) | 92,391,901 | - | - | 92,391,901 |
| ChileIndomitaWineGroup | (a) | 6,870,115 | - | - | 6,870,115 |
| AustraliaKilikanoonEstate | (a) | 37,063,130 | - | - | 37,063,130 |
| Sub-total | 149,437,671 | - | - | 149,437,671 | |
| Impairmentprovision | (16,499,459) | (20,563,671) | - | (37,063,130) | |
| Carryingamount | 132,938,212 | (20,563,671) | - | 112,374,541 |
(a)TheGroupacquiredFransacSales,DicotandMirefleurs,ChileIndomitaWineGroupand
AustraliaKilikanoonEstateinDecember2013,September2015,July2017andJanuary2018respectively,resultinginrespectivegoodwillamountingtoRMB13,112,525,RMB92,391,901,RMB6,870,115andRMB37,063,130.Thegoodwillhadbeenallocatedtocorrespondingassetgroupsforimpairmenttesting.
(2)Provisionforimpairmentofgoodwill
TheGrouphasallocatedtheabovegoodwilltorelevantassetgroupsforimpairmenttesting.Therecoverableamountoftheassetgroupisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflows.Themanagementpreparesthecashflowprojectionforfuture5years(the“projectingperiod”)basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the“subsequentperiod”).ThepretaxdiscountrateusedincalculatingtherecoverableamountsofFransacSales,Dicot,Mirefleurs,IndomitaWineandAustraliaKilikanoonEstateare12.1%,11.2%,11.0%and12.8%,respectively(2020:12.6%,11.2%,11.5%and12.8%).Thekeyassumptionisthegrowthrateofannualrevenuegrowthrateofrelevantsubsidiaries,whichiscomputedbasedontheexpectedgrowthrateofeachsubsidiaryandlong-termaveragegrowthratesofrelevantindustries.Otherrelevantkeyassumptionisbudgetgrossprofitmargin,whichisdeterminedbasedonthehistoricalperformanceofeachsubsidiaryanditsexpectationsformarketdevelopment.Accordingtotheresultsoftheimpairmenttest,theGroupfoundthattherecoverableamountoftheassetgroupincludinggoodwillofAustraliaKilikanoonEstateislowerthanitsbookvalue.Therefore,on31December2021,theprovisionforimpairmentofgoodwillwasRMB37,063,130.TheimpairmentlossamountingtoRMB20,563,671wasrecognisedinassetimpairmentlossin2021.17Long-termdeferredexpenses
Item
| Item | 31December2020 | Adjustmentsatthebeginningoftheperiod | 1January2021 | Additionsduringtheyear | Amortisationfortheyear | Writtenbackduringtheyear | 31December2021 |
| Landleaseprepayment | 40,918,256 | (40,918,256) | - | - | - | - | - |
| Landrequisitionfee | 48,601,667 | - | 48,601,667 | - | (1,778,943) | - | 46,822,724 |
| Greeningfee | 138,185,253 | - | 138,185,253 | 211,223 | (8,748,458) | (1,961,912) | 127,686,106 |
| Leaseholdimprovement | 80,446,179 | - | 80,446,179 | 32,052,432 | (8,218,980) | - | 104,279,631 |
| Others | 6,314,500 | - | 6,314,500 | - | (509,798) | - | 5,804,702 |
| Total | 314,465,855 | (40,918,256) | 273,547,599 | 32,263,655 | (19,256,179) | (1,961,912) | 284,593,163 |
18Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetsandliabilities
| Item | 31December2021 | 31December2020 | ||
| Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | |
| Deferredtaxassets: | ||||
| Provisionforimpairmentofassets | 51,526,991 | 11,522,575 | 44,279,268 | 9,732,098 |
| Unrealisedprofitsofintra-grouptransactions | 481,484,528 | 120,371,131 | 313,043,226 | 78,260,807 |
| Unpaidbonus | 150,325,085 | 37,581,271 | 147,824,610 | 36,956,152 |
| Terminationbenefits | 14,132,191 | 3,533,048 | 16,274,352 | 4,068,588 |
| Deductibletaxlosses | 266,833,106 | 63,160,456 | 268,074,301 | 65,844,999 |
| Deferredincome | 41,295,338 | 8,642,716 | 52,653,609 | 11,378,631 |
| Others | 1,598,132 | 399,534 | - | - |
| Sub-total | 1,007,195,371 | 245,210,731 | 842,149,366 | 206,241,275 |
| Deferredtaxliabilities: | ||||
| Revaluationduetobusinesscombinationsinvolvingentitiesnotundercommoncontrol | 46,411,478 | 11,300,970 | 49,156,771 | 12,022,613 |
| Others | 2,012,000 | 503,000 | - | - |
| Sub-total | 48,423,478 | 11,803,970 | 49,156,771 | 12,022,613 |
(2)Detailsofunrecogniseddeferredtaxassets
Item
| Item | 2021 | 2020 |
| Deductibletaxlosses | 234,250,359 | 187,130,828 |
(3)Expirationofdeductibletaxlossesforunrecogniseddeferredtaxassets
| Year | 2021 | 2020 |
| 2021 | - | 25,008,263 |
| 2022 | 21,367,869 | 21,367,869 |
| 2023 | 22,801,737 | 22,801,737 |
| 2024 | 42,088,453 | 42,088,453 |
| 2025 | 75,794,409 | 75,864,506 |
| 2026 | 72,197,891 | - |
| Total | 234,250,359 | 187,130,828 |
19Othernon-currentassets
| Item | 2021 | 2020 |
| Royalty | 144,120,442 | 170,370,147 |
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theCompanymayusecertaintrademarksofChangyuGroupCompany,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup’sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.Accordingtotheaboveroyaltyagreement,ChangyuGroupcollectedatotalofRMB576,507,809forroyaltyfrom2013to2019,ofwhich51%wasusedtopromotetrademarkssuchasChangyuandtheproductofthiscontract,totallingRMB294,018,093.TheamountisusedforpromotionofChangyuandothertrademarksandtheproductsofthiscontract,totallingRMB62,250,368,thedifferenceisRMB231,768,615(includingtax).On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGrouppaysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon0.98%ofthesalesvolumeoftheGroup‘scontractproductsusingthistrademark.Thearticleisamendedto:
TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.ChangyuGrouppromisedtooffsetthedifferenceofRMB231,768,615abovewiththeroyaltyforfouryears,i.e.from2019to2022.Ifitisnotsufficientfordeduction,therestwillberepaidinaone-offmannerin2023.Ifthereissurplus,thesurpluspartoftheroyaltywillbechargedfromtheyearwhenthesurplusoccurs.Astheamountisalong-termprerpayment,theCompanyrecognisestheamountasothernon-currentassetsandmeanwhileoffsetthesalesfee,i.e.royalty.Asat31December2021,theGroup’sroyaltyin2021wasRMB26,249,705(VATincluded).Whenthedifferenceisdeductedbytheabove-mentionedamount,thebalanceofroyaltyduefromChangyuGroupwasRMB144,120,442.
20Short-termloans
Short-termloansbycategory:
Item
| Item | 2021 | 2020 |
| Unsecuredloans | 478,331,156 | 619,149,908 |
| Mortgagedloans | 118,469,193 | 55,724,891 |
| Guaranteedloans | 25,266,108 | 14,215,916 |
| Total | 622,066,457 | 689,090,715 |
Asat31December2021,detailsofshort-termborrowingswereasfollows:
| Amount | Exchangerate | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | |
| RMB | % | % | ||||
| Creditloans(RMB) | 150,000,000 | 1.0000 | 150,000,000 | Floating | 1yearLPR-0.005 | 3.35% |
| Creditloans(RMB) | 300,000,000 | 1.0000 | 300,000,000 | Floating | Annualbenchmarkinterestrate | 3.35% |
| Creditloans(USD) | 4,490,000 | 6.3098 | 28,331,156 | Fixed | 1.48% | 1.48% |
| Mortgagedloans(EUR) | 6,795,437 | 7.2197 | 49,061,015 | Fixed | 0.35%-0.9% | 0.35%-0.9% |
| Mortgagedloans(USD) | 11,000,000 | 6.3098 | 69,408,178 | Fixed | 1.12%-1.55% | 1.12%-1.55% |
| Guaranteedloans(AUD) | 5,466,488 | 4.6220 | 25,266,108 | Fixed | 2.50% | 2.50% |
| Total | 622,066,457 |
?Asat31December2021,mortgagedloans(EUR)wereHaciendayVi?edosMarquesdel
Atrio,S.L.U(“Atrio“)factoringofaccountsreceivablefrombanksincludingBancodeSabadell,S.A.ofEUR6,795,437(equivalentofRMB49,061,015)(31December2020:
EUR3,558,629,equivalentofRMB28,557,993.?On31December2021,ChileIndomitaWineGrouppledgeditsfixedassetstoBanco
ScotiabanktoborrowUSD11,000,000(equivalenttoRMB69,408,178)(31December
2020:USD4,000,000,equivalenttoRMB26,162,960).?On31December2021,thesecuredloanrepresentedthesecuredloanofAustralia
KilikanoonEstateofAUD5,466,488(equivalenttoRMB25,266,108)(31December2020:
AUD2,833,945,equivalenttoRMB14,215,916).21Accountspayable
| Ageing | 2021 | 2020 |
| Within1year(inclusive) | 486,006,974 | 477,926,275 |
| Over1yearbutwithin2years(inclusive) | 4,435,786 | 2,173,356 |
| Over2yearsbutwithin3years(inclusive) | 1,405,133 | 1,277,767 |
| Over3years | 1,605,923 | 2,970,560 |
| Total | 493,453,816 | 484,347,958 |
Thereisnosignificantaccountspayablewithageingofmorethanoneyear.
22Contractliabilities
Item
| Item | Asat31December2021 | Asat1January2021 |
| Receiptinadvance | 144,013,594 | 118,210,799 |
| Withholdingsalesrebates | 3,107,122 | 16,862,481 |
| Total | 147,120,716 | 135,073,280 |
ContractliabilitiesprimarilyrelatetotheGroup’sadvancesfromsalescontractsofspecificcustomersandthewithholdingsalesrebates.Relevantcontractliabilitiesarerecognisedasrevenuewhenthecontrolofthegoodsistransferredtothecustomer.23Employeebenefitspayable
(1)Employeebenefitspayable:
| Note | 31December2020 | Additionsduringtheyear | Decreaseduringtheyear | 31December2021 | |
| Short-termemployeebenefits | (2) | 172,176,085 | 463,134,665 | (454,752,853) | 180,557,897 |
| Post-employmentbenefits-definedcontributionplans | (3) | 329,474 | 45,027,626 | (45,027,747) | 329,353 |
| Terminationbenefits | 16,274,352 | 5,609,349 | (7,751,510) | 14,132,191 | |
| Total | 188,779,911 | 513,771,640 | (507,532,110) | 195,019,441 |
(2)Short-termemployeebenefits
| 31December2020 | Additionsduringtheyear | Decreaseduringtheyear | 31December2021 | |
| Salaries,bonuses,allowances | 170,277,311 | 414,204,352 | (405,639,128) | 178,842,535 |
| Staffwelfare | 1,734,723 | 17,963,364 | (18,057,122) | 1,640,965 |
| Socialinsurance | 340,733 | 15,251,455 | (15,288,352) | 303,836 |
| Medicalinsurance | 340,733 | 13,693,635 | (13,730,532) | 303,836 |
| Work-relatedinjuryinsurance | - | 1,534,970 | (1,534,970) | - |
| Maternityinsurance | - | 22,850 | (22,850) | - |
| Housingfund | 27,497 | 12,722,935 | (12,711,850) | 38,582 |
| Labourunionfee,staffandworkers’educationfee | 1,874,792 | 3,033,259 | (3,056,401) | 1,851,650 |
| Sub-total | 174,255,056 | 463,175,365 | (454,752,853) | 182,677,568 |
| Less:Non-currentliabilities | 2,078,971 | 40,700 | - | 2,119,671 |
| Total | 172,176,085 | 463,134,665 | (454,752,853) | 180,557,897 |
(3)Post-employmentbenefits-definedcontributionplans
| 31December2020 | Additionsduringtheyear | Decreaseduringtheyear | 31December2021 | |
| Basicpensioninsurance | 329,464 | 43,803,058 | (43,804,402) | 328,120 |
| Unemploymentinsurance | 10 | 1,224,568 | (1,223,345) | 1,233 |
| Total | 329,474 | 45,027,626 | (45,027,747) | 329,353 |
24Taxespayable
Item
| Item | 2021 | 2020 |
| Value-addedtax | 54,103,944 | 25,853,102 |
| Consumptiontax | 70,563,701 | 42,076,231 |
| Corporateincometax | 194,566,746 | 130,621,524 |
| Individualincometax | 872,252 | 614,344 |
| Taxontheuseofurbanland | 2,441,121 | 2,327,666 |
| Educationsurcharges | 5,199,891 | 2,498,374 |
| Urbanmaintenanceandconstructiontax | 7,128,647 | 3,429,038 |
| Others | 7,445,998 | 5,992,534 |
| Total | 342,322,300 | 213,412,813 |
25Otherpayables
| Note | 31December2021 | 31December2020 | |
| Interestpayable | 323,074 | 553,471 | |
| Dividendspayable | 68,392 | 1,003,125 | |
| Others | (1) | 452,642,025 | 384,548,930 |
| Total | 453,033,491 | 386,105,526 |
(1)Others
(a)Detailsofothersbynatureareasfollows:
| Item | 2021 | 2020 |
| Depositpayabletodealer | 241,414,134 | 177,129,582 |
| Advertisingfeepayable | 41,264,460 | 50,444,091 |
| Equipmentandconstructionfeepayable | 44,345,312 | 51,381,563 |
| Freightchargespayable | 29,192,798 | 26,061,359 |
| Depositsduetosuppliers | 12,966,789 | 14,836,302 |
| Contractingfeepayable | 8,668,872 | 9,656,066 |
| Staffdeposit | 5,037,925 | 359,282 |
| Others | 69,751,735 | 54,680,685 |
| Total | 452,642,025 | 384,548,930 |
(b)Therearenosignificantothersagedoveroneyearaccuredthisyear.26Othercurrentliabilities
| Item | Asat31December2021 | Asat31December2020 |
| Taxtobetransferredoutassales | 18,374,193 | 14,820,653 |
27Non-currentliabilitiesduewithinoneyear
Non-currentliabilitiesduewithinoneyearbycategoryareasfollows:
Item
| Item | 2021 | 2020 |
| Long-termloansduewithinoneyear | 74,520,037 | 111,311,890 |
| Long-termpayablesduewithinoneyear | 22,000,000 | 22,000,000 |
| Long-termleaseliabilitiesduewithinoneyear | 14,345,089 | - |
| Total | 110,865,126 | 133,311,890 |
28Long-termloans
(1)Long-termloansbycategory
| Item | 2021 | 2020 |
| Creditloans | 193,475,080 | 220,219,258 |
| Guaranteedloans | 57,092,000 | 91,445,600 |
| Less:Long-termloansduewithinoneyear | 74,520,037 | 111,311,890 |
| Total | 176,047,043 | 200,352,968 |
Asat31December2021,detailsoflong-termborrowingswereasfollows:
| Amount | Exchangerate | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | Long-termloansduewithinoneyear | Long-termloansdueafteroneyear | |
| RMB | % | % | ||||||
| Creditloans(EUR) | 26,798,216 | 7.2197 | 193,475,080 | Fixed | 0.95%-3.28% | 0.95%-3.28% | 68,270,037 | 125,205,043 |
| Guaranteedloans(RMB) | 6,250,000 | 1.0000 | 6,250,000 | Floating | 90%of5-yearLPR | 4.275% | 6,250,000 | - |
| Guaranteedloans(AUD) | 11,000,000 | 4.6220 | 50,842,000 | Floating | BBSY+1.10% | 1.40% | - | 50,842,000 |
| Total | 250,567,080 | 74,520,037 | 176,047,043 |
Asat31December2021,Creditloans(EUR)wereEUR26,798,216borrowedbyBancoSabadell,Bankia,BancoSantander,BBVA,CajaRuraldeNavarretc.(equivalentofRMB193,475,080)(31December2020:EUR27,441,652,equivalentofRMB220,219,258).Guaranteedloans(RMB)werelong-termborrowingsofRMB6,250,000oftheR&DCentre,asubsidiaryoftheCompany(31December2020:RMB31,250,000).AustraliaKilikanoonEstatehasborrowedAUD11,000,000(equivalentofRMB50,842,000)(31December2020:
AUD12,000,000,equivalentofRMB60,195,600)fromANZBankanditwasguaranteedbytheCompany.29Long-termpayables
| Item | 2021 | 2020 |
| AgriculturalDevelopmentFundofChina(“CADF”) | 86,000,000 | 108,000,000 |
| Less:Long-termpayablesduewithinoneyear | 22,000,000 | 22,000,000 |
| Balanceoflong-termpayables | 64,000,000 | 86,000,000 |
In2016,RMB305,000,000fromCADFwasinvestedinR&DCentre,CADFaccountedfor
37.9%oftheregisteredcapital.Accordingtotheinvestmentagreement,CADFwillrecoveryinvestmentfundsover10years,theinvestmentincomereceivedequalto1.2%oftheremainingunpaidprincipalperannum.Inadditiontothefixedincome,CADFwillnolongerenjoyotherprofitsorbearthelossofR&DCentre.Therefore,althoughtheinvestmentinR&DCentre,nominallyequityinvestment,isactuallyadebtinvestment(financialdiscountloan).TheGrouptakethisinvestmentaslong-termpayables,whichmeasuredinamortizedcost.TheGrouprepaystheprincipalofRMB22,000,000in2021.RefertoNoteV.52fordetailsofmortgagedandpledgedassets.
Balanceoflong-term
payables
| Balanceoflong-termpayables | Returnoninvestment | Investmentdate | Terminationdateofrepayment | Duewithinoneyear | Dueafteroneyear | Mortgagedandpledgedassets |
| RMB | RMB | RMB | ||||
| 86,000,000 | 1.2% | 29February2016 | 28February2025 | 22,000,000 | 64,000,000 | Fixedassetsandintangibleassets |
30Deferredincome
| Item | 31December2020 | Additionsduringtheyear | Decreaseduringtheyear | 31December2021 |
| Governmentgrants | 52,653,609 | 2,452,011 | (13,810,282) | 41,295,338 |
Governmentgrants:
| Liability | 31December2020 | Additionsofgovernmentgrantsduringtheyear | Amountsrecognisedinotherincomeduringtheyear | 31December2021 | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 24,600,000 | - | (4,100,000) | 20,500,000 | Governmentgrantsrelatedtoassets |
| FixedassetinvestmentrewardofShiheziChateauproject | 2,436,600 | - | (2,280,000) | 156,600 | Governmentgrantsrelatedtoassets |
| ShandongPeninsulaBlueEconomicAreaconstructionfunds | 2,000,000 | - | (2,000,000) | - | Governmentgrantsrelatedtoassets |
| Xinjiangindustrialrevitalisationandtechnologicaltransformationproject | 12,798,000 | - | (1,422,000) | 11,376,000 | Governmentgrantsrelatedtoassets |
| Specialgovernmentgrantforinfrastructure | 2,120,000 | - | (1,060,000) | 1,060,000 | Governmentgrantsrelatedtoassets |
| Rawwinefermentationproject | 434,700 | - | (434,700) | - | Governmentgrantsrelatedtoassets |
| Winefermentationcapacityconstruction(Huanren)project | 2,400,000 | - | (400,000) | 2,000,000 | Governmentgrantsrelatedtoassets |
| Engineeringtechnologytransformationofinformationsystemproject | 1,740,000 | - | (580,000) | 1,160,000 | Governmentgrantsrelatedtoassets |
| Liquorelectronictrackingproject | 1,191,150 | - | (667,055) | 524,095 | Governmentgrantsrelatedtoassets |
| Specialfundforefficientwater-savingirrigationproject | 1,315,000 | - | (162,000) | 1,153,000 | Governmentgrantsrelatedtoassets |
| Subsidyforeconomicandenergy-savingtechnologicaltransformationprojects | 769,800 | - | (128,300) | 641,500 | Governmentgrantsrelatedtoassets |
| Wineindustrydevelopmentproject | 186,000 | - | (186,000) | - | Governmentgrantsrelatedtoassets |
| SubsidyformechanicdevelopmentofPenglaiDaliuhangBase | 238,858 | - | (13,270) | 225,588 | Governmentgrantsrelatedtoassets |
| Coalsubsidy | - | 2,079,711 | - | 2,079,711 | Governmentgrantsrelatedtoassets |
| Cross-bordere-commerceproject | 201,801 | - | (201,801) | - | Relatedtoincome |
| Subsidyforboilerreconstructionanddemolition | 70,000 | - | (10,000) | 60,000 | Relatedtoincome |
| PrizefromIndustrialDesignCompetitionofYantaiMayor’sCup | 50,000 | 50,000 | (50,000) | 50,000 | Relatedtoincome |
| SpecialFundsforInnovation-DrivenDevelopmentofYantaiCity | 101,700 | 322,300 | (115,156) | 308,844 | Relatedtoincome |
| Total | 52,653,609 | 2,452,011 | (13,810,282) | 41,295,338 |
31Othernon-currentliabilities
Item
| Item | 31December2021 | 31December2020 |
| Employeebenefitspayable | 2,119,671 | 2,078,971 |
Asat31December2021,employeebenefitrepresentsdepositfrombonusaccruedformanagersandabove.Thebonusisexpectedtobepaidin2023.32Sharecapital
| At31December2020and31December2021 | |
| UnrestrictedAshares | 453,460,800 |
| Bshares | 232,003,200 |
| Totalofunrestrictedshares | 685,464,000 |
33Capitalreserve
| Item | 31December2020 | Additionsduringtheyear | Decreaseduringtheyear | 31December2021 |
| Sharepremium | 519,052,172 | - | - | 519,052,172 |
| Others | 5,916,588 | - | - | 5,916,588 |
| Total | 524,968,760 | - | - | 524,968,760 |
34Othercomprehensiveincome
| Item | BalanceatthebeginningoftheyearattributabletoshareholdersoftheCompany | Accruedduringtheyear | BalanceattheendoftheyearattributabletoshareholdersoftheCompany | ||||
| Before-taxamount | Less:Previouslyrecognisedamounttransferredtoprofitorloss | Less:Incometaxexpenses | Net-of-taxamountattributabletoshareholdersoftheCompany | Net-of-taxamountattributabletonon-controllinginterests | |||
| Itemsthatmaybereclassifiedtoprofitorloss | |||||||
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | 576,129 | (39,307,949) | - | - | (35,283,306) | (4,024,643) | (34,707,177) |
35Surplusreserve
Item
| Item | 31December2021 | 31December2020 |
| Statutorysurplusreserve | 342,732,000 | 342,732,000 |
InaccordancewiththeCompanyLawandtheArticlesofAssociationCompany,theCompanyappropriated10%ofitsnetprofittostatutorysurplusreserve.Theappropriationtothestatutorysurplusreservemaybeceasedwhentheaccumulatedappropriationreachesover50%oftheregisteredcapitaloftheCompany.TheCompanydoesnotappropriatenetprofittothesurplusreservein2021assurplusreserveoftheCompanyisabove50%oftheregisteredcapital.TheCompanycanappropriatediscretionarysurplusreserveafterappropriationofthestatutorysurplusreserve.Discretionarysurplusreservecanbeutilisedtooffsetthedeficitorincreasethesharecapitalafterapproval.36Retainedearnings
| Item | Note | 2021 | 2020 |
| Retainedearningsatthebeginningoftheyear(beforeadjustment) | 8,714,091,755 | 8,735,513,044 | |
| Impactofretrospectiveadjustmentofaccountingstandards | (1) | (10,582,161) | - |
| Retainedearningsatthebeginningoftheyear(afteradjustment) | 8,703,509,594 | 8,735,513,044 | |
| Add:NetprofitsfortheyearattributabletoshareholdersoftheCompany | 500,102,606 | 470,860,587 | |
| Less:Dividendstoordinaryshares | (2) | (274,185,600) | (479,824,800) |
| DistributionofdividendstoexistingshareholdersfromCultureDevelopment | - | (12,457,076) | |
| Retainedearningsattheendoftheyear | (3) | 8,929,426,600 | 8,714,091,755 |
(1)Adjustmentsonbeginningretainedearningsareasfollows:
AsaresultoftheimplementationofthenewfinancialinstrumentstandardsbytheGroupin2021,theundistributedprofitatthebeginningof2021wasreducedbyRMB10,582,161.
(2)Dividendsinrespectofordinarysharesdeclaredduringtheyear
Pursuanttotheshareholders’approvalattheshareholders’generalmeetingon27May2021,acashdividendofRMB0.4pershare(2020:RMB0.7pershare),totallingRMB274,185,600(2020:RMB479,824,800).
(3)Retainedearningsattheendoftheyear
Asat31December2021,theconsolidatedretainedearningsattributabletotheCompanyincludedanappropriationofRMB58,041,628(2020:RMB58,021,644)tosurplusreservemadebythesubsidiaries.
37Operatingincomeandoperatingcosts
Item
| Item | 2021 | 2020 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 3,879,875,396 | 1,604,954,772 | 3,325,812,768 | 1,479,923,326 |
| Otheroperatingactivities | 73,192,187 | 42,835,102 | 69,589,233 | 23,954,081 |
| Total | 3,953,067,583 | 1,647,789,874 | 3,395,402,001 | 1,503,877,407 |
| Including:Revenuefromcontractswithcustomers | 3,951,052,097 | 1,646,424,782 | 3,393,386,515 | 1,502,467,908 |
| Rentincome | 2,015,486 | 1,365,092 | 2,015,486 | 1,409,499 |
(1)Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2021 | 2020 |
| Bytypeofgoodsorservices | ||
| -Liquor | 3,879,875,396 | 3,325,812,768 |
| -Others | 71,176,701 | 67,573,747 |
| Bytimingoftransferringgoodsorservices | ||
| -Revenuerecognisedatapointintime | 3,951,052,097 | 3,393,386,515 |
38Taxesandsurcharges
| Item | 2021 | 2020 |
| Consumptiontax | 164,791,894 | 120,563,955 |
| Urbanmaintenanceandconstructiontax | 30,604,422 | 23,169,608 |
| Educationsurcharges | 22,147,840 | 16,756,851 |
| Propertytax | 28,005,705 | 26,843,414 |
| Taxontheuseofurbanland | 11,654,759 | 11,332,778 |
| Stampduty | 6,488,829 | 3,650,250 |
| Others | 364,121 | 1,472,418 |
| Total | 264,057,570 | 203,789,274 |
39Sellinganddistributionexpenses
Item
| Item | 2021 | 2020 |
| Salariesandbenefits | 308,876,899 | 289,527,114 |
| Marketingfee | 251,443,176 | 200,259,537 |
| Labourservicefee | 96,864,855 | 58,723,298 |
| Depreciationexpense | 48,014,605 | 41,224,340 |
| Storagerental | 28,110,876 | 35,744,058 |
| Advertisingfee | 91,168,885 | 22,724,095 |
| Royalty | 24,763,872 | 21,985,068 |
| Travellingexpenses | 21,624,100 | 20,065,075 |
| Designandproductionfee | 30,247,672 | 15,427,023 |
| Conferencefee | 20,088,371 | 15,387,699 |
| Water,electricityandgasfee | 14,988,125 | 13,427,340 |
| Others | 62,762,669 | 53,757,838 |
| Total | 998,954,105 | 788,252,485 |
40Generalandadministrativeexpenses
| Item | 2021 | 2020 |
| Salariesandbenefits | 73,920,103 | 73,329,053 |
| Depreciationexpenses | 79,928,195 | 72,637,754 |
| Repaircosts | 16,467,478 | 23,714,008 |
| Administrativeexpenses | 26,124,859 | 20,927,794 |
| Amortisationexpenses | 19,354,205 | 19,568,760 |
| Amortisationofgreeningfee | 19,186,231 | 18,187,244 |
| Rentalcharge | 5,735,121 | 9,969,494 |
| Safetyproductioncosts | 11,190,158 | 7,831,443 |
| Securityandcleaningfee | 7,455,965 | 7,650,813 |
| Contractingfee | 9,192,907 | 7,603,536 |
| Others | 30,521,154 | 29,226,567 |
| Total | 299,076,376 | 290,646,466 |
41Financialexpenses
| Item | 2021 | 2020 |
| Interestexpensesfromloansandpayables | 24,504,339 | 35,187,642 |
| Interestexpensesfromleaseliabilities | 5,292,452 | - |
| Less:Borrowingcostscapitalised | 945,185 | 797,021 |
| Less:Financialexpensesoffsetbyfiscalinterestsubsidy | - | 1,500,000 |
| Interestincomefromdepositsandreceivables | (19,558,354) | (14,247,274) |
| Netexchangelosses/(gains) | 8,296,888 | (274,140) |
| Otherfinancialexpenses | 3,588,587 | 2,072,506 |
| Total | 21,178,727 | 20,441,713 |
Fiscalinterestsubsidyduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
42Otherincome
Item
| Item | 2021 | 2020 | Relatedtoassets/income |
| Rewardonthefixedassetinvestment | - | 2,280,000 | Governmentgrantsrelatedtoassets |
| ShandongPeninsulaBlueEconomicAreaconstructionfunds | 2,000,000 | 2,000,000 | Governmentgrantsrelatedtoassets |
| Industrialdevelopmentsupportproject | 4,100,000 | 4,100,000 | Governmentgrantsrelatedtoassets |
| Others-Governmentgrantsrelatedtoassets | 7,333,325 | 7,018,292 | Governmentgrantsrelatedtoassets |
| Specialfundsforthedevelopmentofenterprises | 6,815,339 | 23,068,826 | Relatedtoincome |
| Taxrefunds | 13,747,870 | 12,324,440 | Relatedtoincome |
| Strongindustrialcityspecialfunds | - | 792,600 | Relatedtoincome |
| Others-Governmentgrantsrelatedtoincome | 14,244,207 | 21,479,462 | Relatedtoincome |
| Total | 48,240,741 | 73,063,620 |
Otherincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.43Investmentlosses
Investmentlossesbyitem
| Item | 2021 | 2020 |
| Long-termequityinvestmentlossesunderequitymethod | (2,784,997) | (2,217,623) |
| Total | (2,784,997) | (2,217,623) |
44Credit(losses)/reversal
| Item | 2021 | 2020 |
| Accountsreceivable | (7,937,144) | 4,348,309 |
| Total | (7,937,144) | 4,348,309 |
45Impairmentlosses
| Item | 2021 | 2020 |
| Inventories | 689,420 | 5,705,003 |
| Goodwill | (20,563,671) | (8,920,981) |
| Total | (19,874,251) | (3,215,978) |
46Lossfromassetdisposals
| Item | 2021 | 2020 |
| Lossfromdisposaloffixedassets | 11,939,284 | 1,180,655 |
Lossfromdisposalofassetsduringreportingperiodhasbeenincludedinnon-recurringgains
andlosses.
47Non-operatingincomeandnon-operatingexpenses
(1)Non-operatingincomebyitemisasfollows:
Item
| Item | 2021 | 2020 |
| Inventorystocktakesurplus | 1,019,314 | 3,823,905 |
| Insurancecompensation | 1,069,670 | 3,067,670 |
| Netincomefromfine | 1,068,169 | 3,098,877 |
| Others | 2,057,151 | 1,918,058 |
| Total | 5,214,304 | 11,908,510 |
Non-operatingincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
(2)Non-operatingexpenses
| Item | 2021 | 2020 |
| Compensation,penaltyandfineexpenses | 1,761,266 | 347,635 |
| Donationsprovided | 900,000 | 1,048,300 |
| Lossesfromdamageorscrappingofnoncurrentassets | 3,425,709 | - |
| Others | 224,869 | 306,923 |
| Total | 6,311,844 | 1,702,858 |
Non-operatingexpensesduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.48Incometaxexpenses
| Item | Note | 2021 | 2020 |
| Currenttaxexpensefortheyearbasedontaxlawandregulations | 248,208,920 | 135,163,243 | |
| Changesindeferredtaxassets/liabilities | (1) | (39,188,099) | 56,641,257 |
| Total | 209,020,821 | 191,804,500 |
(1)Theanalysisofchangesindeferredtaxissetoutbelow:
| Item | 2021 | 2020 |
| Originationoftemporarydifferences | (39,188,099) | 56,641,257 |
| Total | (39,188,099) | 56,641,257 |
(2)Reconciliationbetweenincometaxexpensesandaccountingprofit:
Item
| Item | 2021 | 2020 |
| Profitbeforetaxation | 715,699,194 | 664,866,563 |
| Estimatedincometaxat25% | 178,924,799 | 166,216,641 |
| Effectofdifferenttaxratesappliedbysubsidiaries | 7,223,819 | 1,310,363 |
| Effectofnon-deductiblecosts,expenseandlosses | 9,480,180 | 7,185,074 |
| Effectofdeductiblelossesofdeferredtaxassetsnotrecognisedfortheyear | 12,159,985 | 16,417,337 |
| Deferredtaxassetswritten-off | 1,232,038 | 675,085 |
| Incometaxexpenses | 209,020,821 | 191,804,500 |
49Basicearningspershareanddilutedearningspershare
(1)Basicearningspershare
BasicearningspershareiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
| 2021 | 2020 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 500,102,606 | 470,860,587 |
| Weightedaveragenumberofordinarysharesoutstanding | 685,464,000 | 685,464,000 |
| Basicearningspershare(RMB/share) | 0.73 | 0.69 |
Weightedaveragenumberofordinarysharesiscalculatedasfollows:
| 2021 | 2020 | |
| Issuedordinarysharesatthebeginningoftheyear | 685,464,000 | 685,464,000 |
| Weightedaveragenumberofordinarysharesattheendoftheyear | 685,464,000 | 685,464,000 |
(2)TheGroupdoesnothaveanypotentialdilutiveordinarysharesforthelistedyears.50Cashflowstatement
(1)Proceedsrelatingtootheroperatingactivities:
| Item | 2021 | 2020 |
| Governmentgrants | 36,882,470 | 56,515,941 |
| Penaltyincome | 1,068,169 | 3,098,877 |
| Interestincomefrombank | 19,558,354 | 14,396,201 |
| Others | 31,633,258 | 7,186,229 |
| Total | 89,142,251 | 81,197,248 |
(2)Paymentsrelatingtootheroperatingactivities:
Item
| Item | 2021 | 2020 |
| Sellinganddistributionexpenses | 430,962,311 | 399,973,695 |
| Generalandadministrativeexpenses | 128,747,237 | 127,666,411 |
| Others | 2,488,469 | 24,250,891 |
| Total | 562,198,017 | 551,890,997 |
(3)Proceedsrelatingtootherfinancingactivities:
| Item | 2021 | 2020 |
| Cashpaidforacquisitionofminorityinterests | - | 62,966,747 |
| Cashpaidforlease | 15,904,567 | - |
| Total | 15,904,567 | 62,966,747 |
51Supplementaryinformationoncashflowstatement
(1)Supplementtocashflowstatement
a.Reconciliationofnetprofittocashflowsfromoperatingactivities:
| Item | 2021 | 2020 |
| Netprofit | 506,678,373 | 473,062,063 |
| Add:Provisionsforimpairmentofassets | 19,874,251 | 3,215,978 |
| Creditlosses/(reversal) | 7,937,144 | (4,348,309) |
| Depreciationoffixedassetsandinvestmentproperty | 271,154,064 | 298,224,327 |
| Amortisationofintangibleassets | 19,914,969 | 20,413,627 |
| Amortisationoflong-termdeferredexpenses | 19,256,179 | 16,578,465 |
| Amortisationofbiologicalassets | 13,721,424 | 13,270,614 |
| DepreciationofROUassets | 16,773,427 | - |
| Lossesfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 15,364,993 | 1,338,570 |
| Financialexpenses | 26,782,042 | 36,134,118 |
| Royalty | 24,763,872 | 21,985,068 |
| Investmentlosses | 2,784,997 | 2,217,623 |
| (Increase)/Decreaseindeferredtaxassets | (38,969,456) | 59,310,068 |
| Decreaseindeferredtaxliabilities | (218,643) | (2,668,811) |
| Decrease/(Increase)ingrossinventories | 143,615,551 | (38,192,093) |
| Increaseinoperatingreceivables | (187,412,623) | (41,443,296) |
| Increase/(Decrease)inoperatingpayables | 263,362,094 | (353,951,339) |
| Netcashflowsfromoperatingactivities | 1,125,382,658 | 505,146,673 |
b.Significantinvestingandfinancingactivitiesnotrequiringtheuseofcash:
Item
| Item | 2021 | 2020 |
| Paymentofconstructioninprogressandotherlong-termassetsbybankacceptances | 60,224,230 | 141,440,165 |
c.Changeincashandcashequivalents:
| Item | 2021 | 2020 |
| Cashequivalentsattheendoftheyear | 1,502,327,029 | 1,052,665,105 |
| Less:Cashequivalentsatthebeginningoftheyear | 1,052,665,105 | 1,397,399,470 |
| Netincrease/(dercrease)incashandcashequivalents | 449,661,924 | (344,734,365) |
(2)Informationonacquisitionordisposalofsubsidiariesandotherbusinessunitsduringtheyear:
Informationonacquisitionofsubsidiariesandotherbusinessunits:
| 2021 | 2020 | |
| Considerationforacquiringsubsidiariesandotherbusinessunits | - | 89,519,789 |
| Cashorcashequivalentspaidduringtheyearforacquiringsubsidiariesandotherbusinessunitsduringtheyear | - | 89,519,789 |
| Including:CultureDevelopment | - | 89,519,789 |
| Less:Cashandcashequivalentsheldbydisposedsubsidiariesandotherbusinessunits | - | - |
| Netcashpaidfortheacquisition | - | 89,519,789 |
(3)Detailsofcashandcashequivalents
| Item | 2021 | 2020 |
| Cashatbankandonhand | ||
| Including:Cashonhand | 71,486 | 19,637 |
| Bankdepositsavailableondemand | 1,502,255,543 | 1,052,645,468 |
| Closingbalanceofcashandcashequivalents | 1,502,327,029 | 1,052,665,105 |
52Assetswithrestrictiveownershiptitleorrightofuse
Item
| Item | Openingbalance | Balanceattheendoftheyear | Reasonforrestriction |
| Cashatbankandonhand | 67,996,762 | 11,568,964 | TheCompanydepositsforlettersofcreditetc. |
| Accountreceivable(i) | 28,557,991 | 49,061,015 | Short-termborrowingsmortgagefromAtrio |
| Fixedassets | 333,748,819 | 313,012,605 | R&DCentremortgageforlong-termpayablesandlong-termandshort-termborrowings |
| Intangibleassets | 206,920,456 | 201,345,477 | R&DCentremortgageforlong-termpayables |
| Total | 637,224,028 | 574,988,061 |
(i)Asat31December2021,theamountofaccountsreceivablewithrestrictedownership
isEUR6,795,436,whichreferstoaccountsreceivableAtrioconductedforfactoringfromBancodeSabadell,S.A.Etc.(31December2020:EUR3,558,628,equivalentofRMB28,557,991)
VI.Interestsinotherentities1Interestsinsubsidiaries
(1)CompositionoftheGroup
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| XinjiangTianzhuWineCo.,Ltd.(“XinajingTianzhu”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | RMB75,000,000 | 60 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| EtablissementsRoulletFransac(“RoulletFransac”) | Cognac,France | Cognac,France | Trading | EUR2,900,000 | - | 100 | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| DicotPartners,S.L(“Dicot”) | Navarre,Spain | Navarre,Spain | Marketingandsales | EUR2,000,000 | 90 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| Vi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSpA.(“ChileIndomitaWineGroup”) | Santiago,Chile | Santiago,Chile | Marketingandsales | CLP31,100,000,000 | 85 | - | Acquiredthroughestablishmentorinvestment |
| KilikanoonEstatePtyLtd.(“AustraliaKilikanoonEstate”) | Adelaide,Australia | Adelaide,Australia | Marketingandsales | AUD6,420,000 | 97.5 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| BeijingChangyuSalesandDistributionCo.,Ltd(“BeijingSales”) | Beijing,China | Beijing,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiKylinPackagingCo.,Ltd.(“KylinPackaging”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB15,410,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChateauChangyu-CastelCo.,Ltd(“ChateauChangyu”)(c) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | USD5,000,000 | 70 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(Jingyang)WineCo.,Ltd.(“JingyangWine”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB1,000,000 | 90 | 10 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuPioneerWineSalesCo.,Ltd.(“SalesCompany”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB8,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd(“LangfangCastel”) | Langfang,Hebei,China | Langfang,Hebei,China | Manufacturing | USD6,108,818 | 39 | 10 | Acquiredthroughestablishmentorinvestment |
| Changyu(Jingyang)WineSalesCo.,Ltd.(“JingyangSales”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Marketingandsales | RMB1,000,000 | 10 | 90 | Acquiredthroughestablishmentorinvestment |
| LangfangChangyuPioneerWineSalesCo.,Ltd(“LangfangSales”) | Langfang,Hebei,China | Langfang,Hebei,China | Marketingandsales | RMB1,000,000 | 10 | 90 | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| ShanghaiChangyuSalesandDistributionCo.,Ltd.(“ShanghaiSales”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| BeijingChangyuAFIPAgriculturedevelopmentCo.,Ltd(“AgricultureDevelopment”) | Miyun,Beijing,China | Miyun,Beijing,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd.(“AFIP”)(d) | Beijing,China | Beijing,China | Manufacturing | RMB642,750,000 | 91.53 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineSalesCo.,Ltd.(“WinesSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 90 | 10 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuPioneerInternationalCo.,Ltd.(“PioneerInternational”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 70 | 30 | Acquiredthroughestablishmentorinvestment |
| HangzhouChangyuWineSalesCo.,Ltd.(“HangzhouChangyu”) | Hangzhou,Zhejiang,China | Hangzhou,Zhejiang,China | Marketingandsales | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”) | Yinchuan,Ningxia,China | Ningxia,China | Plating | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| HuanrenChangyuNationalWinesSalesCo.,Ltd.(“NationalWines”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Marketingandsales | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd.(“GoldenIcewineValley”)(e) | Benxi,Liaoning,China | Benxi,Liaoning,China | Manufacturing | RMB59,687,300 | 51 | - | Acquiredthroughestablishmentorinvestment |
| YantaiDevelopmentZoneChangyuTradingCo.,Ltd(“DevelopmentZoneTrading”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuFushanTradingCompany(“FushanTrading”)(a) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingAFIPMeetingCenter(“MeetingCenter”) | Miyun,Beijing,China | Miyun,Beijing,China | Services | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingAFIPTourismandCulture(“AFIPTourism”) | Miyun,Beijing,China | Miyun,Beijing,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”) | Ningxia,China | Ningxia,China | Manufacturing | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuChateauTinlotCo.,Ltd.(“ChateauTinlot”) | Yantai,Shandong,China | Yantai,Shandong,China | Wholesaleandretail | RMB400,000,000 | 65 | 35 | Acquiredthroughestablishmentorinvestment |
| XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | RMB550,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| NingxiaChateauChangyuMoserXVCo.,Ltd.(“ChateauNingxia”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Manufacturing | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShaanxiChateauChangyuRenaCo.,Ltd.(“ChateauChangan”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB20,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”)(f) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB805,000,000 | 85.32 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(HuanRen)WineCo.,Ltd(“HuanRenWine”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Wineproductionprojecting | RMB5,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| XinjiangChangyuSalesCo.,Ltd(“XinjiangSales”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Marketingandsales | RMB10,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| NingxiaChangyuTradingCo.,Ltd(“NingxiaTrading”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| ShaanxiChangyuRenaWineSalesCo.,Ltd(“ShaanxiSales”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Marketingandsales | RMB3,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| PenglaiChangyuWineSalesCo.,Ltd(“PenglaiSales”) | Penglai,Shandong,China | Penglai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| LaizhouChangyuWineSalesCo.,Ltd(“LaizhouSales”) | Laizhou,Shandong,China | Laizhou,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| FrancsChampsParticipationsSAS(“FrancsChamps”) | Cognac,France | Cognac,France | Investmentandtrading | EUR32,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiRoulletFransacWineSalesCo.,Ltd.(“YantaiRoulletFransac”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineSalesCo.,Ltd.(“WineSalesCompany”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShaanxiChateauChangyuRenaTourismCo.,Ltd(“ChateauTourism”) | Xianxin,Shaanxi,China | Xianxin,Shaanxi,China | Tourism | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| LongkouChangyuWineSalesCo.,Ltd(“LongkouSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| CultureDevelopment | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| Museum | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuCultureTourismProductionSalesCo.,Ltd.(“CultureSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuInternationalWindowoftheWineCityCo.,Ltd.(“WindowoftheWineCity”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB60,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiKOYABrandyChateauCo.,Ltd(“ChateauKOYA”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| Changyu(Shanghai)InternationalDigitalMarketingCenterLimited(“DigitalMarketing”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB50,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuGuoquDigitalTechnologyCo.,Ltd.(“ShanghaiGuoqu”)(b) | Shanghai,China | Shanghai,China | Marketingandsales | RMB6,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| TianjinChangyuYixinDigitalTechnologyCo.,Ltd.(“TianjinYixin”)(b) | Tianjin,China | Tianjin,China | Marketingandsales | RMB10,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuYixinDigitalTechnologyCo.,Ltd.(“ShanghaiYixin”)(b) | Shanghai,China | Shanghai,China | Marketingandsales | RMB10,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
(a)Companiesabovewerederegisteredin2021.(b)Thecompaniesabovearenewlyestablishedcompaniesin2021.Reasonsfortheinconsistencybetweentheproportionofshareholdingsinasubsidiaryandtheproportionofvotingrights:
(c)ChateauChangyuisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,accountingfor70%ofChangyu
Chateau’sequityinterest.Throughagreementarrangement,theCompanyhasthefullpowertocontrolChangyuChateau’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon31December2022.(d)AFIPisalimitedliabilitycompanyestablishedbyYantaiDeanandBeijingQinglang.InJune2019,YantaiDeantransferred1.31%ofits
equitytoYantaiChangyu.Aftertheequitychange,theCompanyholds91.53%ofitsequity.Throughagreementarrangement,theCompanyhasthefullpowertocontrolAFIP’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon2September2024.(e)GoldenIcewineValleyisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,accountingfor51%ofGolden
IcewineValley’sequityinterest.Throughagreementarrangement,theCompanyhasthefullpowertocontrolGoldenIcewineValley’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon31December2021.(f)R&DCentreisajointventureestablishedbytheCompanyandCADF,accountingfor85.32%ofR&DCentre’sequityinterest.Through
agreementarrangementinNoteV.28,theCompanyhasthefullpowertocontrolR&DCentre’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon28February2025.Asat31December2021,remaininginvestmentofCADFaccountsfor14.68%oftheregisteredcapital.
(2)Materialnon-whollyownedsubsidiaries
NameoftheSubsidiary
| NameoftheSubsidiary | Proportionofownershipinterestheldbynon-controllinginterests | Comprehensiveincomeattributabletonon-controllinginterestsfortheyear | Dividenddeclaredtonon-controllingshareholdersduringtheyear | Balanceofnon-controllinginterestsattheendoftheyear |
| XinjiangTianzhu | 40% | 1,392,110 | - | (44,725,990) |
| AFIP | 8.47% | - | - | (56,409,393) |
| GoldenIcewineValley | 49% | - | - | (33,319,062) |
| IWCC | 15% | (492,609) | 1,788,975 | (54,712,980) |
(3)Keyfinancialinformationaboutmaterialnon-whollyownedsubsidiaries
Thefollowingtablesetsoutthekeyfinancialinformationoftheabovesubsidiarieswithoutoffsettinginternaltransactions,butwithadjustmentsmadeforthefairvalueadjustmentattheacquisitiondateandanydifferencesinaccountingpolicies:
XinjiangTianzhu
| XinjiangTianzhu | AFIP | GoldenIcewineValley | ChileIndomitaWineGroup | |||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| Currentassets | 22,333,906 | 24,223,370 | 249,865,391 | 248,357,550 | 24,018,451 | 27,638,263 | 196,488,084 | 231,503,343 |
| Non-currentassets | 43,852,510 | 45,465,308 | 414,851,163 | 434,045,076 | 24,450,344 | 24,246,983 | 314,756,823 | 291,345,642 |
| Totalassets | 66,186,416 | 69,688,678 | 664,716,554 | 682,402,626 | 48,468,795 | 51,885,246 | 511,244,907 | 522,848,985 |
| Currentliabilities | (39,567) | (17,583) | 27,459,352 | 41,910,462 | 12,976,418 | 9,967,686 | 130,027,677 | 132,100,755 |
| Non-currentliabilities | 5,336,114 | 5,336,115 | - | - | - | - | 8,906,387 | 9,794,949 |
| Totalliabilities | 5,296,547 | 5,318,532 | 27,459,352 | 41,910,462 | 12,976,418 | 9,967,686 | 138,934,064 | 141,895,704 |
| Operatingincome | - | - | 191,463,783 | 168,184,273 | 24,236,758 | 20,488,946 | 226,856,381 | 225,121,450 |
| Net(loss)/profit | (3,480,276) | (3,665,095) | 2,326,063 | 2,092,230 | (6,425,183) | (7,431,328) | 19,716,978 | 18,196,663 |
| Totalcomprehensiveincome | (3,480,276) | (3,665,095) | 2,326,063 | 2,092,230 | (6,425,183) | (7,431,328) | 3,284,057 | 18,420,833 |
| Cashflowsfromoperatingactivities | (1,292,713) | (105,873) | (4,754,748) | 3,821,964 | 4,744,413 | 4,654,744 | 99,234,532 | 37,132,027 |
VII.Riskrelatedtofinancialinstruments
TheGrouphasexposuretothefollowingmainrisksfromitsuseoffinancialinstrumentsinthenormalcourseoftheGroup’soperations:
-Creditrisk-Liquidityrisk-Interestraterisk-ForeigncurrencyriskThefollowingmainlypresentsinformationabouttheGroup’sexposuretoeachoftheaboverisksandtheirsources,theirchangesduringtheyear,andtheGroup’sobjectives,policiesandprocessesformeasuringandmanagingrisks,andtheirchangesduringtheyear.TheGroupaimstoseekappropriatebalancebetweentherisksandbenefitsfromitsuseoffinancialinstrumentsandtomitigatetheadverseeffectsthattherisksoffinancialinstrumentshaveontheGroup’sfinancialperformance.Basedonsuchobjectives,theGroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.1Creditrisk
Creditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischargeanobligation.TheGroup’screditriskisprimarilyattributabletocashatbank,receivables,debtinvestmentsandderivativefinancialinstrumentsenteredintoforhedgingpurposes.Exposuretothesecreditrisksaremonitoredbymanagementonanongoingbasis.ThecashatbankoftheGroupismainlyheldwithwell-knownfinancialinstitutions.ManagementdoesnotforeseeanysignificantcreditrisksfromthesedepositsanddoesnotexpectthatthesefinancialinstitutionsmaydefaultandcauselossestotheGroup.Asat31December2021,theGroup’smaximumexposuretocreditriskwhichwillcauseafinanciallosstotheGroupduetofailuretodischargeanobligationbythecounterparties.Inordertominimisethecreditrisk,theGrouphasadoptedapolicytoensurethatallsalescustomershavegoodcreditrecords.AccordingtothepolicyoftheGroup,creditreviewisrequiredforclientswhorequirecredittransactions.Inaddition,theGroupcontinuouslymonitorsthebalanceofaccountreceivabletoensurethere’snoexposuretosignificantbaddebtrisks.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecificapprovaloftheDepartmentofCreditControlintheGroup.Inaddition,theGroupreviewstherecoverableamountofeachindividualtradedebtateachbalancesheetdatetoensurethatadequateimpairmentlossesaremadeforirrecoverableamounts.Inthisregard,themanagementoftheGroupconsidersthattheGroup’screditriskissignificantlyreduced.
SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Concentrationsofcreditriskaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.Asat31December2021,42.8%oftheGrouptradereceivablesareduefromtopfivecustomers(31December2020:20.3%).ThereisnocollateralorothercreditenhancementonthebalanceofthetradereceivablesoftheGroup.2Liquidityrisk
Liquidityriskistheriskthatanenterprisewillencounterdifficultyinmeetingobligationsthataresettledbydeliveringcashoranotherfinancialasset.TheCompanyanditsindividualsubsidiariesareresponsiblefortheirowncashmanagement,includingshort-terminvestmentofcashsurplusesandtheraisingofloanstocoverexpectedcashdemands(subjecttoapprovalbytheCompany’sboardwhentheborrowingsexceedcertainpredeterminedlevels).TheGroup’spolicyistoregularlymonitoritsliquidityrequirementsanditscompliancewithlendingcovenants,toensurethatitmaintainssufficientreservesofcash,readilyrealisablemarketablesecuritiesandadequatecommittedlinesoffundingfrommajorfinancialinstitutionstomeetitsliquidityrequirementsintheshortandlongerterm.ThefollowingtablessetouttheremainingcontractualmaturitiesatthebalancesheetdateoftheGroup’sfinancialliabilities,whicharebasedoncontractualundiscountedcashflows(includinginterestpaymentscomputedusingcontractualratesor,iffloating,basedonratescurrentatthebalancesheetdate)andtheearliestdatetheGroupcanberequiredtopay:
Item
| Item | 2021Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 630,717,486 | - | - | - | 630,717,486 | 622,066,457 |
| Accountspayable | 493,453,816 | - | - | - | 493,453,816 | 493,453,816 |
| Otherpayables | 452,642,025 | - | - | - | 452,642,025 | 452,642,025 |
| Long-termloans(includingtheportionduewithinoneyear) | 20,586,762 | 125,114,353 | 112,380,675 | 15,506,135 | 273,587,925 | 250,567,080 |
| Long-termpayables(includingtheportionduewithinoneyear) | 22,810,674 | 22,546,674 | 42,322,126 | - | 87,679,474 | 86,000,000 |
| Leaseliability(includingtheportionduewithinoneyear) | 19,753,555 | 17,690,615 | 39,763,489 | 75,510,332 | 152,717,991 | 116,156,677 |
| Total | 1,639,964,318 | 165,351,642 | 194,466,290 | 91,016,467 | 2,090,798,717 | 2,020,886,055 |
Item
| Item | 2020Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 698,571,997 | - | - | - | 698,571,997 | 689,090,715 |
| Accountspayable | 484,347,958 | - | - | - | 484,347,958 | 484,347,958 |
| Otherpayables | 386,105,526 | - | - | - | 386,105,526 | 386,105,526 |
| Long-termloans(includingtheportionduewithinoneyear) | 33,175,345 | 24,182,478 | 149,719,792 | 135,013,150 | 342,090,765 | 311,664,858 |
| Long-termpayables(includingtheportionduewithinoneyear) | 23,074,674 | 22,810,674 | 64,868,800 | - | 110,754,148 | 108,000,000 |
| Total | 1,625,275,500 | 46,993,152 | 214,588,592 | 135,013,150 | 2,021,870,394 | 1,979,209,057 |
3Interestraterisk
Interest-bearingfinancialinstrumentsatvariableratesandatfixedratesexposetheGrouptocashflowinterestrateriskandfairvalueinterestrisk,respectively.TheGroupdeterminestheappropriateweightingsofthefixedandfloatingrateinterest-bearinginstrumentsbasedonthecurrentmarketconditionsandperformsregularreviewsandmonitoringtoachieveanappropriatemixoffixedandfloatingrateexposure.
(1)Asat31December,theGroupheldthefollowinginterest-bearingfinancialinstruments:
Fixedrateinstruments:
Item
| Item | 2021 | 2020 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 1.75%-2.25% | 53,200,000 | 1.5%-2.75% | 93,553,062 |
| Financialliabilities | ||||
| -Short-termloans | 0.35%-3.35% | (172,066,457) | 0.35%-3.28% | (139,090,715) |
| -Long-termloans(includingtheportionduewithinoneyear) | 0.95%-3.28% | (193,475,080) | 1%-3.28% | (280,414,858) |
| -Long-termpayables(includingtheportionduewithinoneyear) | 1.20% | (86,000,000) | 1.20% | (108,000,000) |
| -Leaseliability(includingtheportionduewithinoneyear) | 4.65% | (116,156,677) | - | - |
| Total | (514,498,214) | (433,952,511) | ||
Variablerateinstruments:
| Item | 2021 | 2020 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 0.3%-1.82% | 1,513,824,507 | 0.3%-1.0% | 1,100,642,230 |
| Financialliabilities | ||||
| -Short-termloans | 1yearLPR0.005 | (450,000,000) | 1yearLPR0.005 | (550,000,000) |
| -Long-termloans(includingtheportionduewithinoneyear) | 90%of5yearLPR | (6,250,000) | 90%of5yearLPR | (31,250,000) |
| -Long-termloans(includingtheportionduewithinoneyear) | BBSY+1.10% | (50,842,000) | - | - |
| Total | 1,006,732,507 | 519,392,230 | ||
(2)Sensitivityanalysis
ManagementoftheGroupbelievesinterestrateriskonbankdepositisnotsignificant,thereforedoesnotdisclosesensitivityanalysisforinterestraterisk.
Asat31December2021,basedonassumptionsabove,itisestimatedthatageneralincreaseof50basispointsininterestrates,withallothervariablesheldconstant,woulddecreasetheGroup’sequitybyRMB1,901,595(2020:RMB2,179,688),andnetprofitbyRMB1,901,595(2020:RMB2,179,688).Thesensitivityanalysisaboveindicatestheinstantaneouschangeinthenetprofitandequitythatwouldariseassumingthatthechangeininterestrateshadoccurredatthebalancesheetdateandhadbeenappliedtore-measurethosefinancialinstrumentsheldbytheGroupwhichexposetheGrouptofairvalueinterestrateriskatthebalancesheetdate.Inrespectoftheexposuretocashflowinterestrateriskarisingfromfloatingratenon-derivativeinstrumentsheldbytheGroupatthebalancesheetdate,theimpactonthenetprofitandequityisestimatedasanannualisedimpactoninterestexpenseorincomeofsuchachangeininterestrates.4Foreigncurrencyrisk
Inrespectofcashatbankandonhand,accountsreceivableandpayable,short-termloansdenominatedinforeigncurrenciesotherthanthefunctionalcurrency,theGroupensuresthatitsnetexposureiskepttoanacceptablelevelbybuyingorsellingforeigncurrenciesatspotrateswhennecessarytoaddressshort-termimbalances.
(1)Asat31December,theGroup’sexposuretomaincurrencyriskarisingfromrecognised
assetsorliabilitiesdenominatedinforeigncurrenciesispresentedinthefollowingtables.Forpresentationpurposes,theamountsoftheexposureareshowninRenminbi,translatedusingthespotrateatthebalancesheetdate.Differencesresultingfromthetranslationofthefinancialstatementsdenominatedinforeigncurrencyareexcluded.
2021
| 2021 | 2020 | |||
| Balanceatforeigncurrency | BalanceatRMBequivalent | Balanceatforeigncurrency | BalanceatRMBequivalent | |
| Cashatbankandonhand | 2,090,539 | 13,406,984 | 2,029,849 | 14,053,435 |
| -USD | 1,984,323 | 12,640,136 | 1,492,923 | 9,744,604 |
| -EUR | 106,216 | 766,848 | 536,926 | 4,308,831 |
| Short-termloans | 15,490,000 | 98,759,593 | 12,490,000 | 81,524,728 |
| -USD | 15,490,000 | 98,759,593 | 12,490,000 | 81,524,728 |
(2)ThefollowingaretheexchangeratesforRenminbiagainstforeigncurrenciesappliedbythe
Group:
| Averagerate | Balancesheetdatemid-spotrate | |||
| 2021 | 2020 | 2021 | 2020 | |
| USD | 6.4512 | 6.8884 | 6.3757 | 6.5272 |
| EUR | 7.6186 | 7.9065 | 7.2197 | 8.0250 |
(3)Sensitivityanalysis
Assumingallotherriskvariablesremainedconstant,a5%strengtheningoftheRenminbiagainsttheUSdollarandEurodollarat31DecemberwouldhaveimpactontheGroup’sequityandnetprofitbytheamountshownbelow.whoseeffectisinRenminbiandtranslatedusingthespotrateattheyear-enddate:
Equity
| Equity | Netprofit | |
| 31December2021 | ||
| USD | 4,305,973 | 4,305,973 |
| EUR | (38,342) | (38,342) |
| Total | 4,267,631 | 4,267,631 |
| 31December2020 | ||
| USD | 3,589,006 | 3,589,006 |
| EUR | (215,442) | (215,442) |
| Total | 3,373,564 | 3,373,564 |
A5%weakeningoftheRenminbiagainsttheUSdollarandEurodollarat31Decemberwouldhavehadtheequalbutoppositeeffecttotheamountsshownabove,onthebasisthatallothervariablesremainedconstant.VIII.Fairvaluedisclosure
AllfinancialassetsandfinancialliabilitiesheldbytheGrouparecarriedatamountsnotmateriallydifferentfromtheirfairvalueat31December2021and31December2020.
IX.Relatedpartiesandrelatedpartytransactions1InformationabouttheparentoftheCompany
Companyname
| Companyname | Registeredplace | Businessnature | Registeredcapital | Shareholdingpercentage(%) | Percentageofvotingrights(%) | UltimatecontrollingpartyoftheCompany |
| ChangyuGroup | Yantai | Manufacturing | 50,000,000 | 50.4% | 50.4% | JointlycontrolledbyYantaiGuoFengInvestmentHoldingLtd,ILLVASARONNOHOLDINGSPA,InternationalFinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited. |
Therearenochangesontheregisteredcapitalandshareholdingpercentage/percentageofvotingrightsoftheparentcompany.
2InformationaboutthesubsidiariesoftheCompany
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVI.1.3Informationonotherrelatedparties
Nameofotherrelatedparties
| Nameofotherrelatedparties | Relatedpartyrelationship |
| YantaiShenmaPackagingCo.,Ltd.(“ShenmaPackaging”) | Controlledbythesameparentcompany |
| YantaiZhongyaPharmaceuticalTonicWineCo.,Ltd.(“ZhongyaPharmaceutical”) | Controlledbythesameparentcompany |
| WEMISSShanghai | AssociateoftheGroup |
| ChengduYufeng | AssociateoftheGroup |
| Mirefleurs | Subsidiariesofthejointventure |
| CHATEAUDELIVERSAN(“LIVERSAN”) | Subsidiariesofthejointventure |
4Transactionswithrelatedparties
(1)Productprocurement
| Relatedparties | Natureoftransaction | 2021 | 2020 |
| ShenmaPackaging | Productprocurement | 80,754,599 | 78,520,694 |
| ZhongyaPharmaceutical | Productprocurement | 591,522 | 850,478 |
| Mirefleurs | Productprocurement | 6,822,330 | 9,261,722 |
| LIVERSAN | Productprocurement | 3,269,146 | 3,746,069 |
| Total | 91,437,597 | 92,378,963 |
(2)Salesofgoods
| Relatedparties | Natureoftransaction | 2021 | 2020 |
| ZhongyaPharmaceutical | Salesofgoods | 3,872,660 | 3,920,047 |
| WEMISSShanghai | Salesofgoods | 2,677,707 | 1,374,616 |
| ChengduYufeng | Salesofgoods | 5,365,061 | - |
| ShenmaPackaging | Salesofgoods | 287,930 | 293,488 |
| Total | 12,203,358 | 5,588,151 |
(3)Services
| Relatedparties | Natureoftransaction | 2021 | 2020 |
| ShenmaPackaging | Services | - | 106,195 |
| Total | - | 106,195 |
(4)Purchaseoffixedassets
RelatedpartiesoftheCompany
| RelatedpartiesoftheCompany | Natureoftransaction | 2021 | 2020 |
| ShenmaPackaging | Purchaseoffixedassets | 4,101,232 | - |
| Total | 4,101,232 | - |
(5)Saleoffixedassets
| RelatedpartiesoftheCompany | Natureoftransaction | 2021 | 2020 |
| ChangyuGroup | Saleoffixedassets | - | 44,845,989 |
| Total | - | 44,845,989 |
(6)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2021 | Leaseincomerecognisedin2020 | |
| ShenmaPackaging | Officesandplants | 1,492,550 | 1,492,550 | |
| ZhongyaPharmaceutical | Officesandplants | 522,936 | 522,936 | |
| Total | 2,015,486 | 2,015,486 | ||
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2021 | Leaseexpenserecognisedin2020 |
| ChangyuGroup | Officebuildings | 1,612,118 | 1,612,118 |
| ChangyuGroup | Officesandplants | 1,394,762 | 1,394,762 |
| ChangyuGroup | Officesandplants | 4,184,286 | 4,184,286 |
| ChangyuGroup | Officesandcommercialbuilding | 7,057,143 | 1,050,000 |
| ChangyuGroup | Officebuildings | - | 714,286 |
| Total | 14,248,309 | 8,955,452 |
(7)Remunerationofkeymanagementpersonnel
| Item | 2021 | 2020 |
| Remunerationofkeymanagementpersonnel | 12,495,933 | 6,975,110 |
(8)Otherrelatedpartytransactions
| Relatedparties | Natureoftransaction | Note | 2021 | 2020 |
| ChangyuGroup | Royalty | (a) | 24,763,872 | 21,985,068 |
| ChangyuGroup | Transferoftrademarkuserights | (b) | - | 18,334,528 |
| ChangyuGroup | TransferofCultureDevelopment | - | 89,519,789 | |
| ZhongyaPharmaceutical | EquitytransferofChangyuMuseum | - | 1,033,912 |
(a)Contractoftrademarksusage
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theCompanymayusecertaintrademarksofChangyuGroupCompany,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup’sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.Accordingtotheaboveroyaltyagreement,ChangyuGroupcollectedatotalofRMB576,507,809forroyaltyfrom2013to2019,ofwhich51%wasusedtopromotetrademarkssuchasChangyuandtheproductofthiscontract,totallingRMB294,018,093.TheamountisusedforpromotionofChangyuandothertrademarksandtheproductsofthiscontract,totallingRMB62,250,368,thedifferenceisRMB231,768,615(taxinclusive).On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGrouppaysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon
0.98%ofthesalesvolumeoftheGroup‘scontractproductsusingthistrademark.Thearticle6.3isamendedto:TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.Inaddition,inaccordancewithagreementtheGroupsignedwithChangyuGroupinNovember2019,ChangyuGrouppromisedtooffsetthedifferenceofRMB231,768,615abovewiththeroyaltyforfouryears,i.e.from2019to2022.Ifitisnotsufficientfordeduction,therestwillberepaidinaone-offmannerin2023.Ifthereissurplus,thesurpluspartoftheroyaltywillbechargedfromtheyearwhenthesurplusoccurs.TheGroupincurredatrademarkusagefeeofRMB24,763,872thisyear.(b)Transferoftrademarkuserights
On22April2020,theFourthMeetingoftheEighthBoardofDirectorsoftheGroupreviewedandapprovedtheProposalonTransferringthe“KOYA”andOtherTrademarksofYantaiChangyuGroupCo.,Ltd..On16June2020,theGroupandChangyuGroupsignedtheTrademarkTransferAgreementtotransfertheownershipof43trademarksownedbyChangyuGroup,includingKOYA,ZENITHWIRL,FRANLLET,WEMISSandPIONEERatanestimatedpriceofRMB19,434,600(taxinclusive).
5Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
Item
| Item | Relatedparty | 2021 | 2020 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivable | ZhongyaPharmaceutical | 287,788 | 956 | 714,995 | 3,175 |
| Accountsreceivable | WEMISSShanghai | - | - | 1,553,316 | 6,898 |
| Prepayments | ShenmaPackaging | - | - | 126,818 | - |
| Othernon-currentassets | ChangyuGroup | 144,120,442 | - | 170,370,147 | - |
| Otherreceivables | ShenmaPackaging | 341,880 | - | - | - |
| Otherreceivables | ZhongyaPharmaceutical | - | - | 522,936 | - |
Payablestorelatedparties
| Item | Relatedparty | 2021 | 2020 |
| Accountspayable | ShenmaPackaging | 30,184,072 | 33,421,165 |
| Accountspayable | ZhongyaPharmaceutical | - | 455,176 |
| Accountspayable | ChengduYufeng | 344,464 | - |
| Accountspayable | ChangyuGroup | 19,434,600 | 19,434,600 |
| Contractliability | ZhongyaPharmaceutical | 653 | - |
| Otherpayables | ShenmaPackaging | - | 450,000 |
X.Capitalmanagement
TheGroup’sprimaryobjectiveswhenmanagingcapitalaretosafeguarditsabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsforshareholders,bypricingproductsandservicescommensuratelywiththelevelofriskandbysecuringaccesstofinanceatareasonablecost.TheGroup’scapitalstructureisregularlyreviewedandmanagedtoachieveanoptimalstructureandreturnforshareholders.FactorsfortheGroup’sconsiderationinclude:itsfuturefundingrequirements,capitalefficiency,actualandexpectedprofitability,expectedcashflows,andexpectedcapitalexpenditure.AdjustmentsaremadetothecapitalstructureinlightofchangesineconomicconditionsaffectingtheGroup.NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.
XI.Commitmentsandcontingencies1Significantcommitment
(1)Capitalcommitments
Item
| Item | 2021 | 2020 |
| Long-termassetsacquisitioncommitment | 84,963,700 | 249,379,500 |
| Total | 84,963,700 | 249,379,500 |
(2)Operatingleasecommitments
Asat31December,thetotalfutureminimumleasepaymentsundernon-cancellableoperatingleasesoftheGroup’spropertieswerepayableasfollows:
| Item | 2021 | 2020 |
| Within1year(inclusive) | 651,000 | 24,076,000 |
| Over1yearbutwithin2years(inclusive) | - | 17,735,000 |
| Over2yearsbutwithin3years(inclusive) | - | 15,564,000 |
| Over3years | - | 106,278,000 |
| Total | 651,000 | 163,653,000 |
2Contingencies
TheGroupdonothaveanysignificantcontingenciesasatbalancesheetdate.XII.Subsequentevents
Distributionofdividendsonordinarysharesapprovedafterthebalancesheetdate
AccordingtotheproposaloftheBoardofDirectorson25April2022,theCompanyintendsto
distributecashdividendtotalingRMB308,458,800toallshareholdersof685,464,000capital
sharesfortheyearended31December2021onthebasisofRMB4.5(includingtax)for
every10shares.TheproposalissubjecttotheapprovalbytheShareholders’meeting.
Thisdistributionofprofitincashhasnotbeenrecognisedasaliabilityatthebalancesheet
date.XIII.Othersignificantitems1Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparkling
wineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup’sinternal
organisationstructure,managementrequirementsandinternalreportingsystem,theGroup’s
operationisdividedintofiveparts:China,Spain,France,ChileandAustralia.The
managementperiodicallyevaluatessegmentresults,inordertoallocateresourcesand
evaluateperformances.In2021,over87%ofrevenue,morethan94%ofprofitandover
92%ofnon-currentassetsderivedfromChina/arelocatedinChina.Therefore,theGroup
doesnotneedtodiscloseadditionalsegmentreportinformation.
XIV.NotestotheCompany’sfinancialstatements1Billsreceivable
Classificationofbillsreceivable
Item
| Item | 2021 | 2020 |
| Bankacceptancebills | 9,800,000 | - |
| Total | 9,800,000 | - |
Alloftheabovebillsareduewithinoneyear.2Receivablesunderfinancing
| Item | Note | 2021 | 2020 |
| Billsreceivable | (1) | 62,411,636 | 13,920,000 |
| Total | 62,411,636 | 13,920,000 |
(1)ThepledgedbillsreceivableoftheCompanyattheendoftheyear
Asat31December2021,therewasnopledgedbillsreceivable(31December2020:Nil).
(2)Outstandingderecognisedendorsedbillsthathavenotmaturedattheendoftheyear
| Item | Amountderecognisedatyearend |
| Bankacceptancebills | 65,893,889 |
| Total | 65,893,889 |
Asat31December2021,derecognisedbillsendorsedbytheCompanytootherpartieswhich
arenotyetdueattheendoftheperiodisRMB65,893,889(31December2020:
RMB49,849,895).Thenotesareusedforpaymenttosuppliers.TheCompanybelieves
thatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisvery
low,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythe
notesonmaturity,accordingtotherelevantlawsandregulationsofChina,theCompany
wouldundertakelimitedliabilityforthenotes.3Otherreceivables
| Note | 31December2021 | 31December2020 | |
| Dividendsreceivable | (1) | - | 200,000,000 |
| Others | (2) | 398,072,976 | 380,131,798 |
| Total | 398,072,976 | 580,131,798 |
(1)Dividendsreceivable
| Item | 31December2021 | 31December2020 |
| Dividendstosubsidiaries | - | 200,000,000 |
| Total | - | 200,000,000 |
(2)Others
(a)Othersbycustomertype:
Customertype
| Customertype | 31December2021 | 31December2020 |
| Amountsduefromsubsidiaries | 397,998,281 | 379,375,427 |
| Amountsduefromrelatedparties | - | 522,936 |
| Others | 74,695 | 233,435 |
| Sub-total | 398,072,976 | 380,131,798 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 398,072,976 | 380,131,798 |
(b)Theageinganalysisisasfollows:
| Ageing | 2021 | 2020 |
| Within1year(inclusive) | 397,936,651 | 378,307,160 |
| Over1yearbutwithin2years(inclusive) | 11,853 | 1,804,638 |
| Over2yearsbutwithin3years(inclusive) | 104,472 | - |
| Over3years | 20,000 | 20,000 |
| Sub-total | 398,072,976 | 380,131,798 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 398,072,976 | 380,131,798 |
Theageingiscountedstartingfromthedatewhenotherreceivablesarerecognised.(c)Othersbymethodofprovisioning
| 2021 | 2020 | |||||||||
| Category | Bookvalue | Provisionforbadanddoubtfuldebts | Carryingamount | Bookvalue | Provisionforbadanddoubtfuldebts | Carryingamount | ||||
| Amount | Percentage(%) | Amount | Percentage(%) | Amount | Percentage(%) | Amount | Percentage(%) | |||
| Individualassessment | ||||||||||
| -Totalotherreceivables | - | - | - | - | - | - | - | - | - | - |
| Collectiveassessment | ||||||||||
| -Amountsduefromsubsidiaries | 397,998,281 | 99.98 | - | - | 397,998,281 | 379,375,427 | 99.80 | - | - | 379,375,427 |
| -Amountsduefromrelatedparties | - | - | - | - | - | 522,936 | 0.14 | - | - | 522,936 |
| -Amountsduefromthirdparties | 74,695 | 0.02 | - | - | 74,695 | 233,435 | 0.06 | - | - | 233,435 |
| Total | 398,072,976 | 100.00 | - | - | 398,072,976 | 380,131,798 | 100.00 | - | - | 380,131,798 |
(d)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2021,nobadanddoubtfuldebtprovisionwasmadeforother
receivables(31December2020:Nil).
Asat31December2021,theCompanyhasnootherreceivableswrittenoff(31
December2020:Nil).
(e)Otherscategorisedbynature
Natureofotherreceivables
| Natureofotherreceivables | 2021 | 2020 |
| Amountsduefromsubsidiaries | 397,998,281 | 379,375,427 |
| Amountsduefromrelatedparties | - | 522,936 |
| Others | 74,695 | 233,435 |
| Sub-total | 398,072,976 | 380,131,798 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 398,072,976 | 380,131,798 |
(f)Fivelargestothers-bydebtorattheendoftheyear
| Debtor | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| SalesCompany | Amountsduefromsubsidiaries | 113,621,178 | Within1year | 28.5 | - |
| R&DCentre | Amountsduefromsubsidiaries | 36,611,978 | Within1year | 9.2 | - |
| DigitalMarketing | Amountsduefromsubsidiaries | 14,925,497 | Within1year | 3.7 | - |
| ChateauKOYA | Amountsduefromsubsidiaries | 1,458,255 | Within1year | 0.4 | - |
| ChateauChangyu | Amountsduefromsubsidiaries | 419,481 | Within1year | 0.1 | - |
| Total | 167,036,389 | 41.9 | - |
4Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
| Item | 2021 | 2020 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| Investmentsinsubsidiaries | 7,593,535,027 | - | 7,593,535,027 | 7,593,535,027 | - | 7,593,535,027 |
| Investmentsinassociates | 5,886,467 | - | 5,886,467 | 6,243,853 | - | 6,243,853 |
| Total | 7,599,421,494 | - | 7,599,421,494 | 7,599,778,880 | - | 7,599,778,880 |
(2)Investmentsinsubsidiaries:
Subsidiary
| Subsidiary | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Balanceattheendoftheyear |
| XinjiangTianzhu | 60,000,000 | - | - | 60,000,000 |
| KylinPackaging | 23,176,063 | - | - | 23,176,063 |
| ChateauChangyu | 28,968,100 | - | - | 28,968,100 |
| PioneerInternational | 3,500,000 | - | - | 3,500,000 |
| NingxiaGrowing | 36,573,247 | - | - | 36,573,247 |
| NationalWines | 2,000,000 | - | - | 2,000,000 |
| GoldenIcewineValley | 30,440,500 | - | - | 30,440,500 |
| ChateauBeijing | 588,389,444 | - | - | 588,389,444 |
| SalesCompany | 7,200,000 | - | - | 7,200,000 |
| LangfangSales | 100,000 | - | - | 100,000 |
| LangfangCastel | 19,835,730 | - | - | 19,835,730 |
| WineSales | 4,500,000 | - | - | 4,500,000 |
| ShanghaiMarketing | 1,000,000 | - | - | 1,000,000 |
| BeijingSales | 850,000 | - | - | 850,000 |
| JingyangSales | 100,000 | - | - | 100,000 |
| JingyangWine | 900,000 | - | - | 900,000 |
| NingxiaWine | 222,309,388 | - | - | 222,309,388 |
| ChateauNingxia | 453,463,500 | - | - | 453,463,500 |
| ChateauTinlot | 212,039,586 | - | - | 212,039,586 |
| ChateauShihezi | 812,019,770 | - | - | 812,019,770 |
| ChateauChangan | 803,892,258 | - | - | 803,892,258 |
| R&DCentre | 3,288,906,445 | - | - | 3,288,906,445 |
| HuanrenWine | 22,200,000 | - | - | 22,200,000 |
| WineSalesCompany | 5,000,000 | - | - | 5,000,000 |
| FrancsChamps | 236,025,404 | - | - | 236,025,404 |
| Dicot | 233,142,269 | - | - | 233,142,269 |
| ChileIndomitaWineGroup | 274,248,114 | - | - | 274,248,114 |
| AustraliaKilikanoonEstate | 129,275,639 | - | - | 129,275,639 |
| DigitalMarketing | 1,000,000 | - | - | 1,000,000 |
| CultureDevelopment | 92,479,570 | - | - | 92,479,570 |
| Total | 7,593,535,027 | - | - | 7,593,535,027 |
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVI.
(3)Investmentsinassociates:
| Subsidiary | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Balanceattheendoftheyear |
| WEMISSShanghai | 2,743,890 | - | (377,079) | 2,366,811 |
| YantaiSantaiRealEstateDevelopmentCo.,Ltd | 3,499,963 | 19,693 | - | 3,519,656 |
| Total | 6,243,853 | 19,693 | (377,079) | 5,886,467 |
5Operatingincomeandoperatingcosts
Item
| Item | 2021 | 2020 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 576,706,055 | 470,719,232 | 510,205,498 | 450,876,445 |
| Otheroperatingactivities | 2,189,747 | 1,439,506 | 2,098,055 | 1,492,067 |
| Total | 578,895,802 | 472,158,738 | 512,303,553 | 452,368,512 |
| Including:Revenuefromcontractswithcustomers | 576,706,055 | 470,719,232 | 510,205,498 | 450,876,445 |
| Rentincome | 2,189,747 | 1,439,506 | 2,098,055 | 1,492,067 |
(1)Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2021 | 2020 |
| Bytypeofgoodsorservices | ||
| -Liquor | 576,706,055 | 510,205,498 |
| Bytimingoftransferringgoodsorservices | ||
| -Revenuerecognisedatapointintime | 576,706,055 | 510,205,498 |
6Investmentincome
| Item | 2021 | 2020 |
| Incomefromlong-termequityinvestmentsaccountedforusingcostmethod | 867,880,564 | 449,760,868 |
| Lossfromlong-termequityinvestmentsaccountedforusingequitymethod | (357,386) | (256,147) |
| Total | 867,523,178 | 449,504,721 |
7Transactionswithrelatedparties
(1)Productprocurement
Relatedparties
| Relatedparties | Natureoftransaction | 2021 | 2020 |
| Subsidiaryoftheparentcompany | Productprocurement | 117,808,977 | 107,663,061 |
| OtherrelatedpartiesoftheCompany | Productprocurement | 30,002,566 | 36,249,251 |
| Total | 147,811,543 | 143,912,312 |
(2)Salesofgoods
| Relatedparties | Natureoftransaction | 2021 | 2020 |
| Subsidiaryoftheparentcompany | Salesofgoods | 576,708,399 | 504,080,073 |
| OtherrelatedpartiesoftheCompany | Salesofgoods | 3,017,548 | 2,952,493 |
| Total | 579,725,947 | 507,032,566 |
(3)Guarantee
TheCompanyastheguarantor
| Guaranteeholder | Currency | Amountofguarantee | Inceptiondateofguarantee | Maturitydateofguarantee | Guaranteeexpired(Y/N) |
| R&DCentre | RMB | 500,000,000 | 08March2017 | 08March2022 | N |
| AustraliaKilikanoonEstate | AUD | 25,000,000 | 13December2018 | 13December2023 | N |
(4)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2021 | Leaseincomerecognisedin2020 |
| OtherrelatedpartiesoftheCompany | Officesandplants | 2,015,486 | 2,015,486 |
| Subsidiaryoftheparentcompany | Officesbuildings | 85,714 | 82,569 |
| Total | 2,101,200 | 2,098,055 |
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2021 | Leaseexpenserecognisedin2020 |
| OtherrelatedpartiesoftheCompany | Officebuildings | 1,394,762 | 1,394,762 |
| Total | Officebuildings | 1,394,762 | 1,394,762 |
(5)Otherrelatedpartytransactions
Relatedparties
| Relatedparties | Natureoftransaction | 2021 | 2020 |
| ChangyuGroup | Transferoftrademarkuserights | - | 18,334,528 |
| ChangyuGroup | TransferofCultureDevelopment | - | 89,519,789 |
8Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
| Item | Relatedparty | 2021 | 2020 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Prepayments | OtherrelatedpartiesoftheCompany | - | - | 126,818 | - |
| Otherreceivables | Subsidiaryoftheparentcompany | 397,998,281 | - | 379,375,427 | - |
| Otherreceivables | OtherrelatedpartiesoftheCompany | - | - | 522,936 | - |
| Othernon-currentassets | Subsidiaryoftheparentcompany | 2,023,500,000 | - | 1,530,700,000 | - |
Payablestorelatedparties
| Item | Relatedparty | 2021 | 2020 |
| Accountspayable | OtherrelatedpartiesoftheCompany | 28,014,000 | 29,634,723 |
| Otherpayables | Subsidiaryoftheparentcompany | 362,651,747 | 319,936,973 |
| Otherpayables | OtherrelatedpartiesoftheCompany | - | 450,000 |
XV.Non-recurringprofitandlossstatementin2021
| Item | Amount | |
| (1) | Profitandlossfromdisposalofnon-currentassets | (15,364,993) |
| (2) | Governmentgrantsrecognisedthroughprofitorloss(excludingthosehavingcloserelationshipswiththeGroup’soperationandenjoyedinfixedamountorquantityaccordingtouniformnationalstandard) | 48,240,741 |
| (3) | Othernon-operatingincomeandexpensesbesidesitemsabove | 2,328,169 |
| Sub-total | 35,203,917 | |
| (4) | Taxeffect | (7,306,787) |
| (5) | Effectonnon-controllinginterestsaftertaxation | (30,486) |
| Total | 27,866,644 | |
Note1:Extraordinarygainandlossitems(1)to(3)listedabovearepresentedintheamount
beforetaxation.
XVI.Returnonnetassetsandearningspershare
1Calculationofearningspershare
(1)Basicearningspershare
Forcalculationofthebasicearningspershare,pleaserefertoNoteV.49.
(2)Basicearningspershareexcludingextraordinarygainandloss
BasicearningspershareexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
2021
| 2021 | 2020 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 500,102,606 | 470,860,587 |
| ExtraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany | 27,866,644 | 73,205,400 |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 472,235,962 | 397,655,187 |
| Weightedaveragenumberofordinarysharesoutstanding | 685,464,000 | 685,464,000 |
| Basicearningspershareexcludingextraordinarygainandloss(RMB/share) | 0.69 | 0.58 |
(3)Dilutedearningspershare
Duringthereportingperiod,theCompanydidnothavedilutivepotentialordinaryshares.2Calculationofweightedaveragereturnonnetassets
(1)Weightedaveragereturnonnetassets
Weightedaveragereturnonnetassetsiscalculatedasdividingconsolidatednetprofit
attributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountof
consolidatednetassets:
| 2021 | 2020 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 500,102,606 | 470,860,587 |
| Weightedaverageamountofconsolidatednetassets | 10,329,718,533 | 10,304,733,743 |
| Weightedaveragereturnonnetassets | 4.84% | 4.57% |
Calculationofweightedaverageamountofconsolidatednetassetsisasfollows:
2021
| 2021 | 2020 | |
| Consolidatednetassetsatthebeginningoftheyear | 10,267,832,644 | 10,402,248,821 |
| Impactofchangesinaccountingpolicies | (10,582,161) | - |
| Businesscombinationinvolvingentitiesundercommoncontrol | - | (37,299,912) |
| EffectofconsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 232,409,650 | 237,836,150 |
| Theimpactofthepurchaseofminorityshareholders’equity | - | (8,046,940) |
| Effectofsharesrepurchased(NoteV.36) | (159,941,600) | (290,004,376) |
| Weightedaverageamountofconsolidatednetassets | 10,329,718,533 | 10,304,733,743 |
(2)Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss
WeightedaveragereturnonnetassetsexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:
| 2021 | 2020 | |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 472,235,962 | 397,655,187 |
| Weightedaverageamountofconsolidatednetassets(Note) | 10,329,718,533 | 10,243,190,738 |
| Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss | 4.57% | 3.88% |
Note:Whenabusinesscombinationundercommoncontroloccursduringthereporting
period,thenetassetsofthecombiningpartyshallbeweightedfromthemonthfollowingtheacquisitiondatewhencalculatingtheweightedaveragereturnonnetassetsafterdeductingnon-recurringgainsandlosses.Whencalculatingtheweightedaveragereturnonnetassetsafterdeductingnon-recurringgainsandlossesduringthecomparativeperiod,thenetassetsofthecombiningpartyshallnotbeweighted.
YantaiChangyuPioneerWineCo.,Ltd.
BoardofDirectors
April27,2022