Yantai Changyu Pioneer Wine Co., Ltd.
2024 Semi-annual Report
Final 2024-03
August 22, 2024
Table of Contents
I、Important Notice, Table of Contents and Definition ...... 3
II、Brief Introduction for the Company and Main Financial Indicators ...... 6
III、Discussion and Analysis of Management Team ...... 9
IV、Corporate Governance ...... 27
V、Environmental and Social Responsibility ...... 29
VI、Major issues ...... 32
VII、Changes in Shares and the Shareholders’ Situation ...... 40
VIII、Related Situation of Preferred Shares ...... 48
IX、Related Situation of Bonds ...... 48
X、Financial Report ...... 48
I. Important Notice, Table of Contents and Definition
The board of directors，the board of supervisors，directors, supervisors and senior executivesof the Company guarantee the truthfulness, accuracy and completeness of the contentscontained in the semi-annual report with no false records, misleading statements orsignificant omissions, and undertake individual and joint legal liabilities.Mr. Hongjiang ZHOU (Person in charge of the Company), Mr. Jianxun JIANG (Person incharge of accounting work) and Ms. Cuimei GUO (Person in charge of accounting organ &Accountant in charge) assure the truthfulness, accuracy and completeness of the financialreport in the semi-annual report.Except for the following directors, other directors attended this board meeting for reviewingthis semi-annual report in person.
| Name of director not attending the meeting personally | Position of director not attending the meeting personally | Reason of not attending the meeting personally | Name of entrustee |
| Zhuquan WANG | Independent director | On a business trip | Huirong LIU |
| Renzhu YU | Independent director | On a business trip | Qinglin LIU |
Forward-looking statements such as future plans and development strategies covered in thisreport do not constitute a substantial commitment of the Company to investors. Investors areadvised to pay attention to investment risks.Regarding significant risks that the Company may face during the business process, pleaserefer to “10. Risks and response measures” in “III Discussion and Analysis of ManagementTeam” in this report. Investors are suggested to read carefully and pay attention to investmentrisks.The Company has no plan to distribute cash dividends and bonus shares and capital reservewill not be transferred to equity.
Reference Documents
(1) The original of 2024 Semi-annual Report autographed by the Chairman.
(2) The Financial Statements autographed and sealed by the chairman, chief accountant andaccountants in charge.
(3) The Prospectus and Public Offering Announcement for Stock B in 1997; The Prospectusand The Shares’ Change & Public Offering Announcement for Stock A in 2000.
(4) The originals of all documents and announcements that the Company made public duringthe report period in the newspapers designated by China Securities Regulatory Commission.
Definition
| Definition Item | Refers to | Definition Content |
| Company/The Company | Refers to | Yantai Changyu Pioneer Wine Co., Ltd. |
| Changyu Group/Controlling Shareholder | Refers to | Yantai Changyu Group Co., Ltd. |
| CSRC | Refers to | China Securities Regulatory Commission |
| SSE | Refers to | Shenzhen Stock Exchange |
| KPMG Huazhen | Refers to | KPMG Huazhen LLP (Limited Liability Partnership) |
| CNY | Refers to | Chinese Yuan |
II. Brief Introduction for the Company and Main Financial Indicators
1. Company’s information
| Stock Abbreviation | Changyu A, Changyu B | Stock Code | 000869，200869 |
| Stock Abbreviation after Alteration | None | ||
| Place of Stock Listing | Shenzhen Stock Exchange | ||
| Legal Name in Chinese | 烟台张裕葡萄酿酒股份有限公司 | ||
| Abbreviation of Chinese Name | 张裕 | ||
| Legal Name in English | YANTAI CHANGYU PIONEER WINE COMPANY LIMITED | ||
| Abbreviation of English Name | CHANGYU | ||
| Legal Representative | Hongjiang ZHOU | ||
2. Contact person and information
| Secretary to the Board of Directors | Authorized Representative of Securities Affairs | |
| Name | Jianxun JIANG | Tingguo LI |
| Address | 56 Dama Road, Yantai, Shandong, China | 56 Dama Road, 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. Other information
1) Contact information of the Company
Whether there is any change in the Company’s registered address, office address,corresponding postcode, website address and email address during the report period?Available ?Not availableThere is no change in the Company’s registered address, office address, correspondingpostcode, website address and email address during the report period. Please refer to 2023Annual Report for detailed information.
2) Information disclosure and filing location
Whether there is any change in information disclosure and filing location during the reportperiod?Available ?Not availableThere is no change in the name of the newspaper for information disclosure, the address ofthe website designated by the China Securities Regulatory Commission for publishing thesemi-annual report, and the filing location of the Company’s semi-annual report selected bythe Company during the report period. Please refer to 2023 Annual Report for detailedinformation.
3) Other relevant information
Whether there is any change in other relevant information during the report period?Available ?Not available
4. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data ofprevious fiscal years.?Yes ?No
| During the report period | In the same period of last year | More or less than the same period of last year (%) | |
| Operating revenue (CNY) | 1,522,309,436 | 1,966,738,485 | -22.60% |
| Net profit attributed to shareholders of the listed company (CNY) | 221,177,382 | 363,569,436 | -39.17% |
| Net profit attributed to shareholders of the listed company after deducting non-recurring profits and losses (CNY) | 194,883,882 | 324,321,975 | -39.91% |
| Net cash flows from operating activities (CNY) | 203,880,364 | 527,919,786 | -61.38% |
| Basic earnings per share (CNY/share) | 0.32 | 0.53 | -39.62% |
| Diluted earnings per share (CNY/share) | 0.32 | 0.53 | -39.62% |
| Weighted average return on equity | 2.03% | 3.40% | -1.37% |
| At the end of this report period | At the end of last year | More or less than the end of last year (%) | |
| Total assets (CNY) | 12,297,889,483 | 13,336,267,204 | -7.79% |
| Net Assets attributed to shareholders of the listed company (CNY) | 10,583,533,749 | 10,841,500,988 | -2.38% |
5. Differences in accounting data under PRC accounting standards and internationalaccounting standards
1) Differences of net profit and net asset in the financial report disclosed according toboth international accounting standards and PRC accounting standard?Available ?Not availableThere are no differences for net profit and net assets in the financial report disclosedaccording to both international accounting standards and PRC accounting standards duringthe report period.
2) Differences of net profit and net asset in the financial report disclosed according toboth foreign accounting standards and PRC accounting standards?Available ?Not availableThere are no differences of net profit and net asset in the financial report disclosed accordingto both foreign accounting standards and PRC accounting standards during the report period.
6. Item and amount of non-recurring gains and losses
?Available ?Not available
Unit：CNY
| Item | Amount | Explanation |
| Profits and losses on disposal of non-current assets (including the write-off part of the provision for asset impairment has been made) | -95,670 | |
| Government grants included in the current profits and losses(except for those recurring government grants that are closely related to the entity’s operation, in line with related regulations and have proper basis of calculation) | 33,630,640 | |
| Other non-operating income and expenditure besides above-mentioned items | 1,166,359 | |
| Less: Amount affected by income tax | 8,371,006 | |
| Amount affected by minority equity (after tax) | 36,823 | |
| Total | 26,293,500 |
Specific situation of other gains and losses projects conforming to the definition ofnon-recurring profit and loss?Available ?Not availableThere does not exist specific situation of other profit and loss items conforming to thedefinition of non-recurring profit and loss.Explanation for regarding the non-recurring profit and loss specified in the ExplanatoryAnnouncement on Public Company’s Information Disclosure No.1- Non-recurring Profit andLoss as recurrent profit and loss
□Available ?Not available
There is no situation regarding the non-recurring profit and loss specified in the ExplanatoryAnnouncement on Public Company’s Information Disclosure No.1- Non-recurring Profit andLoss as recurrent profit and loss
III. Discussion and Analysis of Management Team
1. Main businesses during the report period
During the report period, the Company’s main business was production and operation of wineand brandy.The Company need to comply with the disclosure requirements of “Food and LiquorManufacturing Related Businesses” in Shenzhen Stock Exchange Industry InformationDisclosure Guideline No. 3 - Industry Information Disclosure.
1) Situation of the industry in which the Company operates
During the report period, the Company’s main business was production and operation of wineand brandy, thus providing domestic and foreign consumers with healthy and fashionablealcoholic drinks. Compared with earlier stage, there were no significant changes happened tothe Company’s main business. The wine industry that the Company involved in was still ingrowth stage. Being affected by many factors in recent years, the competition in domesticwine market was fierce and coupled with other dominant wine squeeze increasingly serious,the wine consumption continuously declined, and a large number of wine productionenterprises have further increased losses, even some wine enterprises were eliminated fromthe market. There are no clear signs of a reversal for the industry. However, seen from thelong term, the Company believes that the existing consumption concept might change withthe increase of people’s income level and their pursuit of a relaxed, romantic and healthylifestyle. More domestic wine would be drunk by people, and wine would enter more andmore household consumption. The situation of current low average consumption of domesticwine would gradually improve. The Company was at the forefront in the domesticwine market and was significantly ahead of major domestic competitors.
2) License obtained
| Producer name | Food category | Obtaining time | Obtaining method | Food production license number |
| Yantai Changyu Pioneer Wine Co., Ltd. | Alcohol | 2021.06.01 | Approval from government authority | SC11537060100050 |
| Beijing Chateau Changyu AFIP Global Co., Ltd. | Alcohol | 2022.08.22 | Approval from government authority | SC11511280920745 |
| Liaoning Changyu Golden Icewine Valley Co., Ltd. | Alcohol | 2021.03.25 | Approval from government authority | SC11521052200370 |
Ningxia Chateau Changyu MoserXV Co., Ltd.
| Ningxia Chateau Changyu Moser XV Co., Ltd. | Alcohol | 2018.01.25 | Approval from government authority | SC11564010500657 |
| Xinjiang Chateau Changyu Baron Balboa Co., Ltd. | Alcohol | 2017.08.25 | Approval from government authority | SC11565900100392 |
| Yantai Chateau Changyu-Castel Co., Ltd. | Alcohol | 2021.06.08 | Approval from government authority | SC11537063600172 |
| Shaanxi Chateau Changyu Rena Co., Ltd. | Alcohol | 2020.10.19 | Approval from government authority | SC11561040400532 |
| Yantai Chateau Koya Brandy Co., Ltd. | Alcohol | 2021.01.11 | Approval from government authority | SC11537063601165 |
3) Explanation for other significant events
During the report period, there did not exist the trademark ownership dispute, food qualityissue or food safety incident etc. that had a significant impact on the Company.Brand operationThe Company’s products were divided into two series: wine and brandy. For wine, mainbrands included Changyu, Noble Dragon, AFIP, Longyu, Golden Icewine Valley, Zenithwirl,Vermouth, Rena, Baron Balboa, Donelly, Atrio, Kilikanoon and IWCC and so on. For Brandy,main brands included Koya, Liquan, Mminni, Pagese, Roullet Fransac and so on.Major sales modeThe Company’s main sales mode was the distribution mode, and main sales channel wasoffline sales, that is, the Company’s products were distributed to sales terminals throughapproximately 5000 distributors at home and abroad and ultimately provided to consumers.Distribution mode?Available ?Not available
① Situation of change in the number of distributors is shown as follows.
| Region | At the beginning of the report period | Increased number during the report period | At the end of the report period |
| Eastern China | 2065 | 140 | 2205 |
| South China | 593 | -6 | 587 |
| Central China | 416 | -2 | 414 |
| North China | 352 | -6 | 346 |
Northwest China
| Northwest China | 161 | -2 | 159 |
| Southwest China | 463 | -7 | 456 |
| Northeast China | 302 | -7 | 295 |
| HongKong, Macao,Taiwan China and overseas | 707 | 37 | 744 |
| Total | 5059 | 147 | 5206 |
① Sales information of the Company’s top 5 distributors during the report period
| No. | Customer name | Sales amount (CNY） | Proportion in total sales（%） |
| 1 | Rank 1st | 17,674,484 | 1.16% |
| 2 | Rank 2nd | 15,277,431 | 1% |
| 3 | Rank 3rd | 13,334,943 | 0.88% |
| 4 | Rank 4th | 13,096,188 | 0.86% |
| 5 | Rank 5th | 12,308,913 | 0.81% |
| Total | -- | 71,691,959 | 4.71% |
The ratio of sales in self-owned exclusive shop exceeds 10%?Available ?Not availableSales of online direct sales?Available ?Not available
| Sales model | First half of 2024 | First half of 2023 | ||||
| Operating income (CNY) | Operating cost (CNY) | Gross margin | Operating income (CNY) | Operating cost (CNY) | Gross margin | |
Distribution
| Distribution | 1,264,253,556 | 497,864,362 | 60.62% | 1,711,154,537 | 699,449,920 | 59.12% |
Direct sales
| Direct sales | 258,055,880 | 97,884,368 | 62.07% | 255,583,948 | 106,009,472 | 58.52% |
| Total | 1,522,309,436 | 595,748,730 | 60.87% | 1,966,738,485 | 805,459,392 | 59.05% |
The change in sales prices of major products accounting for more than 10% of total operatingincome in current report period exceeds 30% compared with those in last report period?Available ?Not availableProcurement mode and procurement content
Unit: CNY
| Procurement mode | Procurement content | Amount of major procurement contents |
| Qualitative and price comparison | Raw materials including grape/bulk wine | 219,174,681 |
| Invitation for bids / qualitative and price comparison | Packaging materials | 184,136,100 |
| Invitation for bids / qualitative and price comparison | Brewing materials | 9,180,981 |
Invitation for bids / qualitative and price comparison
| Invitation for bids / qualitative and price comparison | Goods and materials for vineyard | 432,081 |
| Contract | Fuel and power | 16,007,230 |
| Qualitative and price comparison | Other alcoholic products and derivatives | 7,245,468 |
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of totalprocedure amount?Available ?Not availableThe year-on-year change in the price of major outsourced raw materials exceeds 30%?Available ?Not availableMajor production modeThe production mode of the Company is self-produce.
Commissioned processing and production?Available ?Not availableMajor components of operating costs
① Classification of sector
Unit: CNY
| Sector | Project | First half of 2024 | First half of 2023 | Year-on-year increase or decrease (%) | ||
| Amount | Proportion in the operating cost (%) | Amount | Proportion in the operating cost (%) | |||
| Liquor and alcoholic beverage | Blending liquor | 266,328,765 | 46.35% | 378,409,335 | 48.11% | -29.62% |
| Packing material | 144,493,097 | 25.15% | 220,678,705 | 28.06% | -34.52% | |
| Wages | 17,738,659 | 3.09% | 26,735,936 | 3.40% | -33.65% | |
| Manufacturing expenses | 94,920,089 | 16.52% | 99,862,087 | 12.70% | -4.95% | |
| Contract performance costs | 51,110,026 | 8.90% | 60,798,412 | 7.73% | -15.94% | |
① Classification of product
Unit: CNY
| Sector | Project | First half of 2024 | First half of 2023 | Year-on-year increase or decrease (%) | ||
| Amount | Proportion in the operating cost (%) | Amount | Proportion in the operating cost (%) | |||
| Wine | Blending liquor | 199,534,226 | 46.08% | 269,460,895 | 47.65% | -25.95% |
| Packing material | 106,908,471 | 24.69% | 150,989,468 | 26.70% | -29.19% | |
| Wages | 14,382,917 | 3.32% | 22,021,926 | 3.89% | -34.69% | |
| Manufacturing expenses | 74,450,283 | 17.19% | 78,989,432 | 13.97% | -5.75% | |
Contractperformance costs
| Contract performance costs | 37,735,812 | 8.71% | 44,036,568 | 7.79% | -14.31% | |
| Brandy | Blending liquor | 66,794,539 | 47.18% | 108,948,440 | 49.30% | -38.69% |
| Packing material | 37,584,626 | 26.55% | 69,689,237 | 31.54% | -46.07% | |
| Wages | 3,355,742 | 2.37% | 4,714,010 | 2.13% | -28.81% | |
| Manufacturing expenses | 20,469,806 | 14.46% | 20,872,655 | 9.45% | -1.93% | |
| Contract performance costs | 13,374,214 | 9.45% | 16,761,844 | 7.59% | -20.21% |
Yield and inventory
| Sector | Item | Unit | First half of 2024 | First half of 2023 | Year-on-year increase or decrease (%) |
| Liquor and alcoholic beverage | Sales | Ton | 35,129 | 42,791 | -17.90% |
| Yield | Ton | 34,633 | 35,128 | -1.41% | |
| Inventory | Ton | 25,585 | 22,411 | 14.16% | |
| Wine | Sales | Ton | 26,010 | 29,779 | -12.65% |
| Yield | Ton | 23,798 | 25,918 | -8.18% | |
| Inventory | Ton | 14,694 | 14,471 | 1.54% | |
| Brandy | Sales | Ton | 9,119 | 13,012 | -29.91% |
| Yield | Ton | 10,835 | 9,210 | 17.64% | |
| Inventory | Ton | 10,891 | 7,940 | 37.17% |
2. Analysis of core competitiveness
Compared with the participants in the arena of the Chinese wine competition sector, theCompany owns following advantages:
Firstly, the Company has a large brand influence. Main brands used have a long history.“Changyu”, “Noble Dragon” and “AFIP” are all “China famous brands” that have stronginfluence and good reputation.Secondly, the Company has set up a nationwide marketing network. The Company hasformed a “three-level” marketing network system mainly composed of the Company’ssalesmen and distributors and the online sales platform has had a certain scale and stronginfluence, owing strong marketing ability and market exploitation ability.Thirdly, the Company has strong scientific prowess and a product R&D system. Relying onthe country’s “State-level Wine R&D Center”, the Company has owned powerful winemaker
team, mastered advanced winemaking technology and production processes and had strongproduct innovation capacity and perfect quality control system.Fourthly, the Company is in possession of a lot of grape-growing bases that are compatiblewith its development requirements. The Company has developed a great deal of vineyards inthe most suitable areas for wine grape growing such as Shandong, Ningxia and Xinjiang, andits subsidiary overseas enterprises also own matching grape bases in local area, making theoverall scale and structure generally meet the Company’s needs for future development.Fifthly, products in high, medium and low-grade as well as varieties and categories are allcomplete. Over 100 varieties of series products such as wine, brandy and sparkling winecovers various grades, including high, medium and low-grade, which can meet differentconsumer groups’ demands. The Company has taken the dominant status in the domesticwine industry after many years’ development and has comparative advantages in the futurecompetition.Sixthly, the Company has a relatively perfect motivation system. Most of Company’semployees indirectly hold the Company’s equity through controlling shareholders. There arehigh consistency between employee benefits and shareholders benefits, in favor of motivatingemployees to create value for shareholders.Seventhly, the Company has set up flexible and efficient decision-making mechanism. TheCompany’s core management team always maintains a working style of unity and pragmaticand flexible and efficient decision-making mechanism, which makes the Company can dealwith market changes more calmly.Eighthly, the global production capacity layout has been basically completed. The Companyhas completed production capacity layout in China, France, Chile, Spain, Australia and othermajor wine producing countries in the world, enabling making better use of globalhigh-quality raw material resources, capital, talents and advanced production processes andtechnologies to provide consumers with diversified quality products and better serveconsumers.
Based on the above reasons, the Company has formed relatively strong core competence andwill maintain a relatively dominant position in the future predictable market competition.
3. Analysis in main business
SummarizationDuring the reporting period, affected by the overall economic environment and consumptiondownturn, weak wine consumption foundation and other factors, the domestic wine marketdemand continues to shrink, the profitability of wine enterprises is deteriorating, the marketinvestment and development and innovation ability is seriously insufficient, coupled with theextrusion of other advantageous wines, the development trend of the industry is still hovering
at a low level, and there is no obvious sign of stopping the decline.In the face of adverse situation, the Company insisted in taking the market as the center,insisted the development strategy of “Focus on high quality, Focus on middle-and-high level,Focus on big product” and the marketing concept of “Increasing sales from the terminal andcontinuously-cultivated consumers” without wavering, vigorously expanded the consumermarket, steadily improved product quality, continuously carried out marketing innovation andconsumer cultivation activities, and constantly improved the incentive mechanism, achievingfavorable results. In the first half year, the Company realized the operating income ofCNY1,522.31million with a year-on-year decrease of 22.60% and the net profit attributableto shareholders of the parent company of CNY221.18million with a year-on-year decrease of
39.17%. During the report period, the Company mainly conducted following work:
First, the Company insisted market-oriented strategy and took efforts to improve marketcompetitiveness. The Company insisted on taking the market as the center, constantlyimproved the market layout according to the development stage and market characteristics ofdifferent markets, formulated differentiated strategies from product positioning, personnelsetting, product layout, channel construction, marketing and other aspects, and concentratedsuperior resources to do well in key market development; focused on key products includingLongyu, Koya and Noble Dragon, deepened the construction of channel outlets and theoperation of core consumer groups, and continued to create core large products; constantlyoptimized and digital marketing to promote product sales; improved the index assessmentsystem, continued to promote marketing transformation, increased circle marketing andbanquet marketing activities, and further promoted the optimization of product structure;strengthened the training of marketing personnel, established a high-quality marketing team,continued to improve the marketing organizational structure and effectively enhanced themarket coordination ability while ensuring the flexible operation of each business unit.Second, the Company continued to promote product quality upgrading in comparison withwell-known international and domestic best-selling brands. The Company continued to takeinternational and domestic well-known best-selling brands as benchmark, strengthenedmarket research, carried out various process tests, and constantly promoted product qualityupgrading, improving the internal quality of products in different amplitude; completed theapplication work of “Hao Pin Shandong”, National Quality Benchmark, ShandongManufacturing·Qilu Quality, Yantai Key Industry Chain Quality Tackle Competition,Geographical Indication and other projects. The Company’s products participated in the 2024International Wine (Spirit) Competitions (Mundus Vini, Berliner Wein Trophy, DWA, CIV,IWC, IWSC, CMB, FIWA and LSC) and domestic wine competitions (Asian WineCompetition, CADA Qing Zhuo Award New Product), and won a total of 76 awards,including 12 grand gold medals (all international grand gold awards), 35 gold medals (28international gold awards, 7 domestic gold awards), 11 silver medals, and 9 bronze medals.Third, the Company strengthened the control in key costs in the production system,intensified energy conservation and emission reduction, strictly implemented the procurementstrategy of reliable quality with reasonable price and price comparison, optimized andrestructured the production organization system, scientifically arranged production batches
and production times, constantly reduced production costs, and improved production andoperation efficiency.Fourth, the Company strengthened financial management and audit supervision and improvedthe quality of business operation. The Company took various measures to save financingcosts through strengthening capital management; increased interest income through timedeposits, structured deposits, agreed deposits and other ways; reasonably carried out taxplanning to prevent unnecessary fiscal and tax expenditures. The Company also gave fullplay to the function of audit supervision, insisted on doing routine audits including off-officeauditing and economic benefit auditing, and strengthened the audit in key expenses such asadvertising expenses of business departments; explored the innovation of auditing workmethods and models, and improved the level of audit supervision by constantly strengtheningaudit quality control.Fifth, the Company conducted the buyback of B shares to protect the interests of investors.As of July 17, 2024, the Company has repurchased 19,999,993 B shares in the way ofcentralized bidding through the special securities account for share buyback, accounting forapproximately 8.6206% of the Company’s B shares and approximately 2.8891% of theCompany’s total share capital.Although the Company achieved certain results in the first half of 2024 through the adoptionof above measures, its operating income and net profit declined in different amplitude, and itis facing great pressure to fully complete the 2024 financial target and the performance targetdetermined in the restricted shares incentive plan for 2024 annual. In order to achieve thebusiness objectives, the Company will focus on following work in the second half of 2024:
The first is to do the best to explore the market and try to reverse the adverse situation ofdeclining sales. The Company will further rectify the marketing team, adhere to thecombination of external introduction and internal training, and create a high-qualitymarketing team that matches the current new business form of alcohol consumption;strengthen the circle marketing and banquet promotion to strive for breakthrough; payattention to the principal contradiction, implement the focus strategy, and ask each salesdivision to continue to focus on corresponding regional markets, brands and channels;increase the innovation of Grappie system, accelerate the establishment of the catering-directdistribution system, promote the operation of online channel, and strengthen the brandcommunication innovation of Grappie in the new media era.The second is to continuously improve product quality and highlight product characteristics.The Company will strictly implement the system of “weekly inspection, monthly scheduling”,strengthen the blind comparison of internal quality, further highlight the Chinesecharacteristics and Chinese cultural elements of products, and form a series of characteristicproducts with “Chinese terroir, Changyu style and world quality”.The third is to expand the tourism business to enhance brand empowerment and sell products.The Company will further improve the operation level of tourism projects including ChangyuWine Culture Museum, experience centers in Qingdao airport and Yantai airport, LongyuEstate and Chateau AFIP, and complete the renovation of exhibition in Chateau Rena at alower cost.
The fourth is to strictly control key expenses and guard against operational risks. TheCompany will adhere to several basic tasks such as developing high-margin products,limiting low-margin products, controlling unsalable products, monitoring the use ofadvertising fee, and conducting major raw materials procurement based on price comparison,strengthen daily tracking, scheduling and auditing work, and strengthen the control in keycosts, in order to eliminate potential risks and improve business efficiency.The fifth is to complete the acquisition of grape material through scientific organization andscheduling. The Company will, on the basis of extensive research and sufficientdemonstration, in accordance with the principle of reliable quality with reasonable price,properly plan the quantity, variety structure and production area of grapes and other rawmaterials this year to ensure the timely and full acquisition of high-quality grapes and otherraw materials, providing reliable raw material guarantee for the Company’s futuredevelopment.
Year-on-year change in key financial data
Unit: CNY
| This period | The same period of last year | Year-on-year increase or decrease | Cause of significant changes | |
| Operating revenue | 1,522,309,436 | 1,966,738,485 | -22.60% | Mainly due to the decline in product sales volume |
| Operating cost | 595,748,730 | 805,459,392 | -26.04% | Mainly due to the decline in operating income |
| Sales expense | 391,916,515 | 453,001,710 | -13.48% | Mainly due to the decrease in marketing expenses |
Management expense
| Management expense | 132,945,615 | 128,695,395 | 3.30% | Mainly due to the increase in the expense of restricted share incentive plan |
| Financial expense | 3,223,510 | 3,226,433 | -0.09% | No significant change |
| Income tax expense | 92,758,345 | 130,350,513 | -28.84% | Mainly due to the decline in operating profit |
R&D expense
| R&D expense | 6,748,675 | 6,653,626 | 1.43% | No significant change |
| Net cash flow generated in operating activities | 203,880,364 | 527,919,786 | -61.38% | Mainly due to the decline in operating income |
Net cash flow generated ininvestment activities
| Net cash flow generated in investment activities | 101,776,789 | -251,021,334 | Not available | Mainly due to an increase in the recovery of time deposits |
| Net cash flow generated in financing activities | -704,692,341 | -467,609,294 | -50.70% | Mainly due to the increase in cash paid for the buy-back of B shares |
Net increased amount ofcash and cash equivalents
| Net increased amount of cash and cash equivalents | -400,166,503 | -189,672,821 | -110.98% | Mainly due to the decrease in net cash flow from financing activities |
Significant change in the profit form and profit source of the Company during the reportperiod?Available ?Not availableThere is no significant change in the profit form and profit source of the Company during thereport period.Composition of operating revenue
Unit: CNY
| This report period | The same period of last year | Year-on-year increase or decrease (%) | |||
| Amount | Proportion in operating revenue | Amount | Proportion in operating revenue | ||
| Total operating revenue | 1,522,309,436 | 100% | 1,966,738,485 | 100% | -22.60% |
| Sector-classified | |||||
| Sector of liquor and alcoholic beverage | 1,522,309,436 | 100% | 1,966,738,485 | 100% | -22.60% |
| Product-classified | |||||
| Wine | 1,105,466,306 | 72.62% | 1,371,894,155 | 69.75% | -19.42% |
| Brandy | 356,049,751 | 23.39% | 534,282,319 | 27.17% | -33.36% |
| Tourism | 43,588,165 | 2.86% | 43,589,121 | 2.22% | 0% |
| Others | 17,205,214 | 1.13% | 16,972,890 | 0.86% | 1.37% |
| Area-classified | |||||
| Domestic | 1,277,499,221 | 83.92% | 1,687,735,613 | 85.81% | -24.31% |
| Overseas | 244,810,215 | 16.08% | 279,002,872 | 14.19% | -12.26% |
The cases of industry, product or area accounting for over 10% in the Company’s operatingrevenue or operating profit?Available ?Not available
Unit: CNY
| Operating revenue | Operating cost | Gross margin | Year-on-year increase or decrease (%) of operating revenue | Year-on-year increase or decrease (%) of operating cost | Year-on-year increase or decrease (%) of gross margin | |
| Sector-classified | ||||||
| Sector of liquor and alcoholic beverage | 1,522,309,436 | 595,748,730 | 60.87% | -22.60% | -26.04% | 1.82% |
| Product-classified | ||||||
| Wine | 1,105,466,306 | 433,011,709 | 60.83% | -19.42% | -23.43% | 2.05% |
Brandy
| Brandy | 356,049,751 | 141,578,927 | 60.24% | -33.36% | -35.93% | 1.60% |
| Tourism | 43,588,165 | 11,945,702 | 72.59% | 0% | -3.22% | 0.91% |
| Others | 17,205,214 | 9,212,392 | 46.46% | 1.37% | 38.90% | -14.46% |
| Area-classified | ||||||
| Domestic | 1,277,499,221 | 445,552,765 | 65.12% | -24.31% | -26.65% | 1.11% |
| Abroad | 244,810,215 | 150,195,965 | 38.65% | -12.26% | -24.16% | 9.64% |
Under the condition that the statistical caliber of the Company’s main business data isadjusted during the report period, the Company’s main business data adjusted on the basis ofcaliber at the end of report period in recent one period.?Available ?Not availableThe Company need to comply with the disclosure requirements of “Food and LiquorManufacturing Related Businesses” in Shenzhen Stock Exchange Industry InformationDisclosure Guideline No. 3 - Industry Information Disclosure.
4. Analysis in non-main business
?Available ?Not available
5. Analysis in assets and liabilities
1) Significant change in assets composition
Unit: CNY
| At the end of this report period | At the end of last year | Proportion increase or decrease (%) | Explanation on significant changes | |||
| Amount | Proportion in the total assets (%) | Amount | Proportion in the total assets (%) | |||
| Monetary funds | 1,659,684,740 | 13.50% | 2,217,693,647 | 16.63% | -3.13% | No significant changes |
| Account receivables | 172,184,919 | 1.40% | 382,132,334 | 2.87% | -1.47% | No significant changes |
| Contract assets | — | — | — | — | — | — |
| Inventory | 2,886,202,651 | 23.47% | 2,765,390,587 | 20.74% | 2.73% | No significant changes |
| Investment real estate | 23,237,000 | 0.19% | 24,482,831 | 0.18% | 0.01% | No significant changes |
| Long-term equity investments | 36,353,528 | 0.30% | 38,285,620 | 0.29% | 0.01% | No significant changes |
| Fixed assets | 5,687,285,125 | 46.25% | 5,795,082,569 | 43.45% | 2.80% | No significant changes |
| Construction in progress | 10,097,466 | 0.08% | 3,323,241 | 0.02% | 0.06% | No significant changes |
| Right-of-use asset | 112,742,536 | 0.92% | 121,745,910 | 0.91% | 0.01% | No significant changes |
| Short-term borrowings | 202,057,523 | 1.64% | 364,981,445 | 2.74% | -1.10% | No significant changes |
Contract liability
| Contract liability | 138,471,595 | 1.13% | 175,278,849 | 1.31% | -0.18% | No significant changes |
| Long-term borrowings | 36,651,931 | 0.30% | 66,616,443 | 0.50% | -0.20% | No significant changes |
| Lease liability | 68,134,685 | 0.55% | 85,038,335 | 0.64% | -0.09% | No significant changes |
2) Main overseas assets situation
?Available ?Not available
Unit：CNY
| Details of assets | Formation reasons | Assets scale | Location | Operation mode | Control measures for safeguarding of asset security | Earning condition | Proportion of overseas assets in the Company’s net assets | Whether there are significant impairment risks |
| Hacienda Y Vinedos Marques Del Atrio. SL | Acquisition of equity | 542,039,993 | Spain | Independent operation | The Company participates in making important decisions through board of directors and appoints CFO on financial management. | 6,510,153 | 5.12% | No |
| Indomita Wine Company Chile, S.p.A. | Establishment of joint venture | 538,029,550 | Chile | Independent operation | The Company participates in making important decisions through board of directors. | -528,407 | 5.08% | No |
| Kilikanoon Estate Pty., Ltd. | Acquisition of equity | 168,788,947 | Australia | Independent operation | The Company participates in making important decisions through board of directors. | -1,652,806 | 1.59% | No |
| Francs Champs Participations SAS | Sole proprietorship establishment | 216,426,784 | France | Independent operation | The Company participates in making important decisions through board of directors. | -2,738,940 | 2.04% | No |
| Other information explanation | None | |||||||
3) Assets and liabilities measured at fair value
?Available ?Not available
4) Limitations of assets rights up to the end of the report period
①For information about assets mortgage and pledge, please refer to Announcement on External Guarantee and Announcement on Guarantee providedby Spanish Atrio Company for Bank Loan disclosed on China Securities Journal, Securities Times and CNINFO (http://www.cninfo.com.cn) in 2016,2017, 2018, 2019, 2020 and 2023.
②For the types and amounts of mortgaged and pledged assets, please refer to “20. Assets with ownership or use right restrictions” in “7. Notes to items
in the consolidated financial statements” in the note to the financial statements of this report.
6. Analysis in investment condition
1) Overall situation
?Available ?Not available
| Investment amount during the report period (CNY) | Investment amount of the same period of last year (CNY) | Variation |
| 30,353,311 | 3,460,000 | 777.26% |
2) Cases of acquired significant equity investments during the report period?Available ?Not available
3) Cases of significant ongoing non-equity investments during the report period?Available ?Not available
Unit: CNY
| Project name | Investment mode | Whether belongs to fixed assets investment | Involved sectors of investment projects | Investment amount during the report period | Accumulated actual investment amount up to the end of the report period | Capital source | Project progress | Estimated earnings | Accumulated realized earnings up to the end of the report period | Reasons for unreached planning schedule and estimated earnings | Disclosure date | Disclosure index (if have) |
| Yantai Changyu International Wine City Blending and Cooling Center | Self-constructed | Yes | Liquor and alcoholic beverage sector | 0 | 1,705,784,100 | Owned fund | 100% | 0 | 0 | Achieve the planned progress | 2017.04.22 | Please refer to Resolution Announcement of Seventh Session Board of Directors 4th Meeting, Resolution Announcement of Seventh |
Yantai ChangyuInternationalWine CityBottling Center
| Yantai Changyu International Wine City Bottling Center | Self-constructed | Yes | 0 | 1,136,520,000 | Owned fund | 100% | 0 | 0 | Achieve the planned progress | 2017.04.22 | Session Board of Directors 8th Meeting, Resolution Announcement of Seventh Session Board of Directors 10th Meeting, Resolution Announcement of Eighth Session Board of Directors 4th Meeting, Resolution Announcement of Eighth Session Board of Directors 11th Meeting, Resolution Announcement of Ninth Session Board of Directors 5th Meeting and Resolution Announcement of Ninth Session Board of Directors 9th Meeting disclosed on CNINFO (http://www.cninfo.com.cn/) | |
| Oak Barrel Procurement Project | Self-constructed | Yes | 22,991,311 | 230,845,511 | Owned fund | 92% | 0 | 0 | Achieve the planned progress | 2021.04.28 | ||
| Intellectualized Upgrade and Renovation Project of Changyu Wine Culture Museum | Self-constructed | Yes | 2,817,000 | 62,930,000 | Owned fund | 100% | 0 | 0 | Achieve the planned progress | 2022.04.27 | ||
| New fermentation workshop project of Ningxia Chateau | Self-constructed | Yes | 4,545,000 | 4,545,000 | Owned fund | 20% | 0 | 0 | Achieve the planned progress | 2024.04.12 | ||
| Changyu Industrial Park infrastructure improvement project | Self-constructed | Yes | 0 | 0 | Owned fund | 0% | 0 | 0 | Achieve the planned progress | 2022.04.27 |
Total
| Total | -- | -- | -- | 30,353,311 | 3,140,624,611 | -- | -- | 0 | 0 | -- | -- | -- |
4) Financial assets investment
① Security investment situation
?Available ?Not availableThere are no security investments for the Company during the report period.
① Derivatives investment
?Available ?Not availableThere are no derivatives investments for the Company during the report period.
5) The usage situation of raised capital
□Available ?Not available
There are no usage situations of raised capital for the Company during the report period.
7. Sale of significant assets and equities
1) Sale of significant assets
?Available ?Not availableThe Company did not sell significant assets during the report period.
2) Sale of significant equities
?Available ?Not available
8. Analysis of main holding and joint stock companies
?Available ?Not availableSituation of main subsidiaries and joint stock companies affecting over 10% of the Company’s net profit
Unit: CNY
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Yantai Changyu Pioneer Wine Sales Co., Ltd. | Subsidiary | Sales of alcoholic products | CNY8million | 480,155,448 | 116,109,299 | 877,511,336 | 215,256,197 | 164,756,999 |
Yantai Changyu Wine Sales Co.,Ltd.
| Yantai Changyu Wine Sales Co., Ltd. | Subsidiary | Sales of alcoholic products | CNY5million | 283,195,251 | 272,301,864 | 310,571,158 | 51,903,408 | 38,927,556 |
| Changyu Trading Co., Ltd. in Development Zone of Yantai | Subsidiary | Sales of alcoholic products | CNY5million | 77,346,336 | 15,263,030 | 71,562,870 | 6,074,416 | 4,452,411 |
| Laizhou Changyu Wine Sales Co., Ltd. | Subsidiary | Sales of alcoholic products | CNY1million | 75,120,978 | 1,082,779 | 121,102,449 | 6,929,256 | 5,166,732 |
Acquisition and disposal of subsidiaries during the report period?Available ?Not availableExplanation on main holding and joint stock companiesNone
9. Situation of the structured subjects controlled by the Company
?Available ?Not available
10. Risks and response measures
1) Risk in price fluctuation of raw materials
Grapes are the Company’s main raw materials. The grape’s yield and quality are affected to acertain extent by the natural factors such as drought, wind, rain, frost and snow. These forcemajeure factors greatly influence the quantity and price of the grapes in this Company ordersand add the uncertainty to the Company’s production and operation. Therefore, the Companywill lower the risks that are likely to affect grape quality and result in price fluctuation bymeans of expanding the self-run vineyards, strengthening the vineyard management andoptimizing the layout of vineyards.
2) Risk in uncertainty of market input and output
To cope with the cutthroat market competition and to meet the needs for market development,the Company has input more and more capital in the market and the sales expense has takenup a higher percentage point in the business revenue. The input-output ratio will affect theCompany’s operating results to a great extent and the risk that some investments may notreach the expectations is likely to occur. Therefore, the Company will strengthen marketresearch and analysis, enhance market forecast accuracy and continue to perfect theinput-output evaluation system to ensure the investments in market to be satisfactory asexpected.
3) Risk in product transport
The Company’s products are fragile and sent to different places all over the world, mostly bysea, railway and expressway. The peak season of sales is usually in cold winter and close tothe spring festival when market has a great demand. At that time, the natural and humanfactors such as serious shortage of transport capacity resulting from busy flow of people andgoods, wind, snow, freezing as well as traffic accidents make the transport departmentsdifficult to send products to markets in time and safely. As a result, it makes this Companyhave to face the risks of missing the peak season of sales. Therefore, the Company will adoptall methods possible like making precise sales prediction and well designed connection ofproduction and sales, reasonably arranging production and transport means and making use ofmore available warehouses in different places to lower these kinds of risks.
4) Risk in investment faults
The Company invested many projects in the previous periods and the investment amountswere relatively large. For individual project, owing to the influence of various factors, it led tohave the risks of facing with the investment amount out of budget or hardly taking back theexpected investment earnings. The Company will take an adequate argument and scientificdecision-making for investment projects, try hard to reduce and avoid investment risks.
5) Risk in exchange rate
The Company’s overseas subsidiaries export products to many different countries and theexport amount is relatively large. There may be exchange losses or gains due to exchange ratefluctuation.
6) Other risks
During the production and sales of the Company’s products, it may be affected by forcemajeure such as wars, typhoons, earthquakes, etc..
11. Implementation of the “The Improvement Both on Quality and Return” action planWhether the company disclosed the “The Improvement Both on Quality and Return” actionplan
□Yes ?No
IV. Corporate Governance
1. Information for the shareholders’ meeting and interim shareholders’ meeting heldduring the report period
1)Information for the shareholders’ meeting during the report period
| Session | Meeting type | Participation ratio of investors | Convening date | Disclosure date | Meeting Resolution |
| First Interim Shareholders’ Meeting in 2024 | Interim Shareholders’ Meeting | 55.38% | 2024.03.11 | 2024.03.12 | According to the voting results, the meeting deliberated and approved the Plan on Buy-Back of Partial B Shares of Yantai Changyu Pioneer Wine Co., Ltd., Proposal on Replacement and Election of Directors and Proposal on Authorization to Buy Back Shares. |
| 2023 Annual Shareholders’ Meeting | Annual Shareholders’ Meeting | 54.04% | 2024.05.17 | 2024.05.18 | According to the voting results, the meeting deliberated and approved the 2023 Annual Board of Directors’ Work Report, 2023 Annual Board of Supervisors’ Work Report, 2023 Annual Report, Proposal on 2023 Annual Profit Distribution, Proposal on 2024 Annual Financial Budget and Proposal on Appointment of Certified Public Accounting Firm. |
| Second Interim Shareholders’ Meeting in 2024 | Interim Shareholders’ Meeting | 52.23% | 2024.06.25 | 2024.06.26 | According to the voting results, the meeting deliberated and approved the Proposal on Amendment of the Company’s “Articles of Association”, Proposal on Amendment of the Company’s “Rules of Rrocedure for Shareholders’Meeting”, Proposal on Amendment of the Company’s “Rules of Rrocedure for Board of Directors”, Proposal on Amendment of the Company’s “Rules of Rrocedure for Board of Supervisors” and Proposal on Formulation of “Working System of Independent Directors”. |
2)Request for convening interim shareholders’ meeting by priority shareholders owingrecovered voting right?Available ?Not available
2. Changes in the Company’s directors, supervisors and senior executives?Available ?Not available
| Name | Position held | Type | Date | Reason |
| Dianxin CHEN | Director | Outgoing | 2024.03.11 | Ms. Dianxin CHEN has resigned as a director of the Company due to job adjustment. |
| Xunzhang LIU | Director | Be elected | 2024.03.11 | Nominated by Yantai Changyu Group Co., Ltd. and elected as a director of the Company. |
3. Situation of profit distribution and capitalization of capital reserve into share capitalduring the report period?Available ?Not availableThe Company plans not to distribute cash dividends or give bonus shares or make capitalization ofcapital reserve into share capital.
4. Implementation of the Company’s equity inventive plan, employee stock ownershipplan or other employee incentive measures?Available ?Not available
1) Equity incentive
In 2023, the Company implemented the restricted share incentive plan for 203 middle-levelmanagers and core cadres and granted them 5.2956 million shares of restricted share. On July 22,2024, the Company’s Fourth Interim Board of Directors Meeting in 2024 and the Second InterimBoard of Supervisors in 2024 deliberated and approved the Proposal on the Achievement forLifting Restrictions in the First Period of Lifting Restriction Regarding the Company's 2023Restricted Share Incentive Plan. According to the relevant provisions of the Company’s IncentivePlan, the conditions for lifting restrictions in the first restriction-lifted period of restricted sharesgranted under the Company’s Incentive Plan in 2023 have been met, and the number of restrictedshares that can be released during the first restriction-lifted period of the Company’s 172 incentivesubjects that meet the conditions for the release of the restricted shares are 1,720,495 shares; thenumber of bought back and cancelled restricted shares are 425,666 shares due to various reasons.
2) Implementation of employees’ share ownership plan
?Available ?Not available
3) Other employee incentives
?Available ?Not available
V. Environmental and Social Responsibility
1. Major environmental situation
Whether the listed company and its subsidiaries belong to major polluters published by theenvironmental protection department?Yes ?No
Policies and industry standards related to environmental protectionThe Environmental Protection Law of People’s Republic of China, The Water Pollution’sPrevention and Control Law of People’s Republic of China, The Air Pollution’s Preventionand Control Law of People’s Republic of China, The Environmental Noise Pollution’sPrevention and Control Law of People’s Republic of China, The Environmental Solid WastePollution’s Prevention and Control Law of People’s Republic of China and TheEnvironmental Protection Regulations of Liaoning Province; the national’s GeneralPrinciples of Hazardous Waste Identification Standards, Surface Water EnvironmentalQuality Standards, Groundwater Environmental Quality Standards, Environmental AirQuality Standards, Acoustic Environmental Quality Standards, Emission Standard forEnvironmental Noise at the Boundary of Industrial Enterprises, Comprehensive DischargeStandard for Boiler Air Pollutants, The Limiting Value of Occupational Exposure toHazardous Factors in the Workplace (Chemical Hazardous Factors) and ComprehensiveWastewater Discharge Standard of Liaoning Province.
Administrative permit for environmental protectionIt has been approved in the Huanhuanjianzi (2016) No.24 issued by the EnvironmentalProtection Bureau of Huanren Manchu Autonomous County.
| Name of company or subsidiary | Name of major pollutants and particular pollutants | Mode of discharge | Quantity of discharge outlet | Distribution situation of discharge outlet | Discharge concentration | Implemented pollution discharge standard | Total volume of discharge | Total approved volume of discharge | Condition of excessive discharge |
| Chateau Changyu Icewine Co., Ltd. Liaoning | Organized exhaust gas, inorganizedexhaust gas, waster water, noise | Discharge outlet of boiler chimney and discharge outlet of factory waste water | 2 | Confirmed in line with national standard Graphical Signs for Environmental Protection (GB15562.1-1995) (GB15562.2-1995) | Meeting the national standards | Emission Standard for Air Pollutants of Boiler (GB13271-2014), Emission Standard for Odor Pollutants (GB14554-93), 4a in Class 2 of Emission Standard for Environmental Noise at the Boundary of | 35m3/d | 120m3/d | No |
IndustrialEnterprises(GB12348-2008),ComprehensiveWastewaterDischarge Standardof LiaoningProvince(DB21/1627-2008)
IndustrialEnterprises(GB12348-2008),ComprehensiveWastewaterDischarge Standardof LiaoningProvince(DB21/1627-2008)
Treatment of pollutantsThe exhaust gas, SO
and NOXproduced by this company's boiler are discharged throughceramic tube dust removers and bag dust removers. A wastewater treatment station has beenconstructed. The wastewater treatment process adopts the treatment process of hydrolys isaerobiont. Production wastewater and domestic sewage are treated by the in-plant wastewatertreatment station and then discharged into the waste water treatment plant in BeidianzixiangTown.
Emergency plan for emergent environmental incidentThe Company has formulated a comprehensive emergency plan for emergent environmentalincident.
Investment in environmental governance and protection and payment of environmentalprotection taxThe Company has made sufficient investment in environmental protection, done a good jobin environmental governance and protection and paid environmental protection tax in full andtimely according to law.
Environmental self-monitoring programThe Company has formulated a complete environmental self-monitoring program.
Administrative penalties due to environmental issues during the reporting period
| Name of Company or Subsidiary | Penalty Reason | Violation Situation | Penalty Result | Impact on the Production and Operation of the Listed Company | Rectification Measures of the Company |
| None | None | None | None | None | None |
Other environmental information that should be made publicNo
Measures taken for reducing carbon emissions and effects?Available ?Not availableOther related environmental informationNo
2. Social responsibility performance
1) The Company served the rural revitalization well, adopted the mode of “company + farmer”or “company + cooperative + farmer”, reformed the sloping fields of Jiaodong Peninsular andthe northwestern area including Ningxia and Xinjiang and so on, the uncultivated land or thebarren land into graperies. By means of providing capital and technology of viticulture tofruit growers, scientific management level of vineyard had been improved. The Companyspared no effort to popularize the non-pollution and mechanized planting methods,continuously improved production efficiency of grape base and quality of grape, and reducedproduction cost of grape and labor intensity. Through the above measures, on the one hand, itpromotes the effective use of land resources, promotes the organic integration of ruralhouseholds and modern agriculture, and helps increase agricultural efficiency, farmers’incomes and rural development; on the other hand, it improves the local ecologicalenvironment and brings huge ecological benefits.
2) The Company provided counterpart supports to Huangchengyang village in Longkou City,an old revolutionary base area by purchasing local agricultural products to help solve theproblem of slow sales.
3) The Company provided help and assistance to the Company’s in-service or retiredemployees with poor families, as well as the Company’s in-service or retired employees withchronic or serious illnesses.
VI. Major issues
1. Commitments that the Company’s actual controllers, shareholders, related parties, acquirers and the Company and other relatedcommitment parties have implemented during the report period and have not implemented up to the end of the report period
?Available ?Not available
| Commitments | Commitment party | Commitment type | Commitment content | Commitment time | Commitment period | Implementation |
| Commitments at the initial public offering or refinancing | Yantai Changyu Group Co., Ltd. | Solve horizontal competition | Non-horizontal competition | 1997.05.18 | Forever | Has been performing |
| Commitment under timely implementation or not | Yes | |||||
| Whether or not to have specific reasons of the unimplemented commitment and next steps | None | |||||
2. Non-operational occupation capital of the listed company by controlling shareholderand its related parties?Available ?Not availableThere is no non-operational occupation capital of the listed company by controllingshareholder and its related parties during the report period.
3. Illegal external guarantee
?Available ?Not availableThere is no illegal guarantee situation during the report period.
4. Appointment and dismissal of certified public accountants
Whether the semi-annual report has been audited?Yes ?NoThe semi-annual report has not been audited.
5. Explanation from the board of directors and the board of supervisors for the“Non-standard Audit Report” during this report period?Available ?Not available
6. Explanation from the board of directors for the “Non-standard Audit Report” of lastyear?Available ?Not available
7. Issues related with bankruptcy reorganization
?Available ?Not availableThere are no related issues of bankruptcy reorganization happened at the end of the reportperiod.
8. Litigation Issue
Material litigation and arbitration?Available ?Not availableThere are no material litigation and arbitration during the report period.Other Litigation Issue?Available ?Not available
9. Penalty and rectification
?Available ?Not available
10. Credit of the Company, its controlling shareholder and actual controller?Available ?Not available
11. Major related transactions
1) Related transactions in relation to routine operations
?Available ?Not available
2) Related transactions in relation to acquisition and sales of assets or equity?Available ?Not availableThere are no related transactions in relation to acquisition or sales of assets or equity during the report period.
3) Related transactions in relation to common foreign investment
?Available ?Not availableThere are no related transactions in relation to common foreign investment during the report period.
4) Related credit and debt dealings
?Available □Not available
| Related party | Relationship | Type | Content | Pricing principle | Price | Amount (CNY‘0000) | Proportion accounting for amount of similar transactions | Approved transaction quota (CNY‘0000) | Whether exceed approved transaction quota | Clearing form | Available market price of similar transactions | Disclosure date | Disclosure index |
| Yantai Shenma Packaging Co., Ltd. | Controlled by the same parent company | Purchase and commission processing | Purchase and commission processing packaging materials | Agreement pricing | Determined by agreement | 3,425 | 18.60% | 9,000 | No | Cash | No | 2024.04.12 | Expected Announcement on 2024 Annual Routine Related Transaction disclosed in China Securities Journal,SecuritiesTimesand CNINFO in 2024 |
| Total | -- | -- | 3,425 | -- | 9,000 | -- | -- | -- | -- | -- | |||
| Details of the return of large sales | No | ||||||||||||
| Actual performance of the estimated total amount for daily operations related transactions by category that will occur during this period. | No | ||||||||||||
| Reason for the deference between transaction price and market reference price(if available) | Not available | ||||||||||||
Whether or not existing non-operating related credit and debt transactions
□Yes ?No
There is no non-operating related credit and debt transactions during the report period.
5) Deals of related financial companies
?Available ?Not availableThere is no deposit, loan, credit granting or other financial business between the related financial companies and related parties.
6) Deals between financial companies controlled by the Company and relayed parties?Available ?Not availableThere is no deposit, loan, credit granting or other financial business between the financial companies controlled by the Company and related parties.
7) Other major related transactions
?Available ?Not availableFor other major related transactions, please refer to the Announcement of 2023 Annual Expected Routine Related Transaction and the Section XI“ Related Parties and Related Transaction” of the Financial Report of this report.
Disclosure website of interim report for major related transaction
| Name of interim announcement | Disclosure date of interim announcement | Name of disclosure website for interim announcement |
| Announcement of 2024 Annual Expected Routine Related Transaction | 2024.04.12 | CNINFO (www.cninfo.com.cn) |
12. Major contracts and execution conditions
1) Trusteeship, contract and lease issues
① Trusteeship situation
?Available ?Not availableThere is no trusteeship situation during the report period.
② Contract situation
?Available ?Not availableThere is no such contract situation during the report period.
③ Lease situation
?Available ?Not availableExplanation for lease situationOn January 1
st, 2022, the Company renewed the Space Lease Agreement with the controllingshareholder Yantai Changyu Group Company Limited. The Company leased the space with15,196.94 square meters locating at No. 174 Shihuiyao Road, Zhifu District, Yantai City. Therent per year is CNY 1.4645 million with a rental period of 5 years from January 1
st, 2022 toDecember 31
st, 2026. On January 1
st, 2022, the Company’s subordinate Sales & MarketingCo. of Yantai Changyu Pioneer Wine Company Limited Brandy Sales Division renewed theSpace Lease Agreement with the controlling shareholder Yantai Changyu Group CompanyLimited, leasing the space with 42,552.83 square meters locating at No. 1 Jichang Road,Zhifu District, Yantai City and the space with 3,038 square meters locating at 56 Dama Road,Zhifu District, Yantai City, which are all under the name of controlling shareholder. The rentof above spaces per year is CNY 4.3935 million with a rental period of 5 years from January
st, 2022 to December 31
st, 2026.In 2023, this Company signed a house-leasing contract with Yantai Shenma PackagingCompany Limited. According to this contract, since July 1
st, 2023, this Company leasedproperty to Yantai Shenma Packaging Company Limited for a business purpose with theannual rent of CNY 1,626,880. This contract expires on June 30
th
, 2028.
Project whose profit and loss brought for the Company reach more than 10% of the totalprofit during the report period?Available ?Not availableThere are no lease projects whose profit and loss brought for the Company reach more than10% of the total profit during the report period.
2) Major guarantee
?Available ?Not available
Unit: CNY’0000
| External guarantee of the Company and its subsidiaries（excluding guarantee to subsidiaries） | ||||||||||
| Guarantee object name | Disclosure date of related announcement about guarantee quota | Guarantee quota | Actual date of occurrence (date of agreement) | Actual guarantee amount | Guarantee type | Collateral (if have) | Counterguarantee situation (if have) | Guarantee Period | Whether or not complete implementation | Whether or not belong to related-party guarantee |
| Yantai Economic and Technological Development Zone Management Council. | 2016.12.22 | 34,160 | 2016.12.21 | 34,160 | Joint liability assurance; Mortgage | - | - | 10 years | Yes | No |
| Total of the external guarantee quota approved during the report period (A1) | 0 | Total of the actual external guarantee amount during the report period (A2) | 0 | |||||||
| Total of the external guarantee quota approved by the end of the report period (A3) | 34,160 | Balance of the actual external guarantee by the end of the report period (A4) | 0 | |||||||
| Guarantee situations between the Company and subsidiaries | ||||||||||
| Guarantee object name | Disclosure date of related announcement about guarantee quota | Guarantee quota | Actual date of occurrence | Actual guarantee amount | Guarantee type | Collateral | Counterguarantee situation | Guarantee Period | Whether or not complete implementation | Whether or not belong to related-party guarantee |
| Yantai Changyu Wine Research and Development Company Limited | 2016.12.22 | 72,176 | 2016.12.21 | 72,176 | Joint liability assurance; Mortgage | - | - | 10 years | Yes | Yes |
| Kilikanoon Estate Pty Ltd | 2023.08.31 | 7,530 | 2023.09.01 | 7,530 | Joint liability assurance | - | - | Effective as of the date this Agreement is signed and will remain in effect as long as the guarantor remains in business with East West Bank | No | Yes |
| Total of the guarantee quota approved to subsidiaries during the report period (B1) | 0 | Total of the actual guarantee amount for subsidiaries during the report period (B2) | 0 | |||||||
Total of the guarantee quota approved tosubsidiaries by the end of the report period (B3)
| Total of the guarantee quota approved to subsidiaries by the end of the report period (B3) | 80,376 | Balance of the actual guarantee for subsidiaries by the end of the report period (B4) | 7,530 |
| Guarantee situations between subsidiaries | |||
| None | |||
| Total guarantee amount of the Company（Total of above three major items） | |||
| Total of the approved guarantee quota during the report period（A1+B1+C1） | 0 | Total of the actual guarantee amount during the report period（A2+B2+C2） | 0 |
| Total of the approved guarantee quota by the end of the report period（A3+B3+C3） | 114,536 | Balance of the actual guarantee by the end of the report period（A4+B4+C4） | 7,530 |
| The proportion of actual total guarantee amount (A4+B4+C4) accounting for the Company’s net asset | 0.71% | ||
| Among : | |||
| The amount of guarantee for shareholders, actual controllers and their related parties（D） | 0 | ||
| The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is more than 70% directly or indirectly（E） | 0 | ||
| Total amount of guarantee of the part that exceeds 50% of net assets（F） | 0 | ||
| Total amount of the above-mentioned three items（D+E+F） | 0 | ||
| Explanation for undue guarantees that have happened warranty liability or may take joint payback liabilities during the report period | No | ||
| Explanation for violating due process to provide external guarantee | No | ||
Explanation on specific situations of adapting guarantee by complex methods
None
3) Financial management entrustment
?Available ?Not availableThere is no financial management entrustment during the report period.
4) Other important contracts
?Available ?Not availableThere are no other important contracts during the report period.
13. Other Major issues
?Available ?Not availableThere are no other major issues need to be explained during the report period.
14. Major issues of Company’s subsidiaries
?Available ?Not available
VII. Changes in Shares and Shareholders’ Situation
1. Changes in shares
1) Changes in shares
Unit: share
| Amount before this change | Change (+, -) | Amount after this change | |||||||
| Amount | Percentage % | Allot new share | Distribute bonus share | Transfer other capital to share capital | Others | Subtotal | Amount | Percentage % | |
| I. Shares with trading limited condition | 6,912,759 | 1% | 6,912,759 | 1% | |||||
| 1. State-owned holdings | |||||||||
| 2. State-owned legal person holdings | |||||||||
| 3. Other domestic holdings | 6,912,759 | 1% | 6,912,759 | 1% | |||||
| Among which: domestic legal person | |||||||||
| domestic natural person | 6,912,759 | 1% | 6,912,759 | 1% | |||||
| 4. Foreign-owned holdings | |||||||||
| Among which: foreign legal person | |||||||||
| foreign natural person | |||||||||
| II. Shares without trading limited condition | 685,336,800 | 99% | 685,336,800 | 99% | |||||
| 1. A shares | 453,438,300 | 65.50% | 453,438,300 | 65.50% | |||||
| 2. B shares | 231,898,500 | 33.50% | 231,898,500 | 33.50% | |||||
| 3. Oversea listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 692,249,559 | 100% | 692,249,559 | 100% | |||||
Cause of share change?Available ?Not availableApproval of share change?Available ?Not availableTransfer ownership of changed shares?Available ?Not availableImplementation progress of share buy-back?Available ?Not availableOn May 21, 2024, the Company bought back 470,000 B shares of the Company for the first timethrough the share buy-back special securities account in a centralized bidding mode, accountingfor 0.06789% of the Company’s current total share capital, with the highest transaction price ofHKD9.80 per share and the lowest transaction price of HKD9.54 per share. The total transactionamount was HKD4,562,470 (excluding transaction fees).As of May 31, 2024, the Company has bought back 5,794,500 B shares of the Company throughshare buy-back special securities account in a centralized bidding mode, accounting for 0.83705%of the Company’s current total share capital, with the highest transaction price of HKD10.16 pershare and the lowest transaction price of HKD9.54 per share. The total transaction amount wasHKD58,191,775.31 (excluding transaction fees).As of June 17, 2024, the Company has bought back 7,066,500 B shares of the Company throughshare buy-back special securities account in a centralized bidding mode, accounting for 1.020802%of the Company’s current total share capital, with the highest transaction price of HKD10.16 pershare and the lowest transaction price of HKD9.26 per share. The total transaction amount wasHKD70,112,955.78 (excluding transaction fees).As of June 21, 2024, the Company has bought back 13,880,000 B shares of the Company throughshare buy-back special securities account in a centralized bidding mode, accounting for 2.005057%of the Company’s current total share capital, with the highest transaction price of HKD10.16 pershare and the lowest transaction price of HKD9.26 per share. The total transaction amount wasHKD134,451,959.88 (excluding transaction fees).As of June 30, 2024, the Company has bought back 16,860,000 B shares of the Company throughshare buy-back special securities account in a centralized bidding mode, accounting for 2.4355378%of the Company’s current total share capital, with the highest transaction price of HKD10.16 pershare and the lowest transaction price of HKD9.26 per share. The total transaction amount wasHKD162,467,975.57 (excluding transaction fees).As of July 17, 2024, the Company has bought back 19,999,993 B shares of the Company throughshare buy-back special securities account in a centralized bidding mode, accounting for 8.6206%of the Company’s B shares and 2.8891% of the Company’s current total share capital, with thehighest transaction price of HKD10.16 per share and the lowest transaction price of HKD9.13 pershare. The total transaction amount was HKD191,585,678.23 (including transaction fees),equivalented to CNY175,028,843.9, which does not exceed CNY200million. All the sharesbuy-back had been completed, and the number of buy-back shares had basically reached themaximum number of buy-back shares in the Buy-back Plan.There is no difference between the actual number, the proportion and the total amount of fundsused of buy-back shares by the Company and the Buy-back Plan approved by the Company’sShareholders’ Meeting. The number of buy-back shares this time has exceeded the lower limit inthe Buy-back Plan, which did not exceed the upper limit in the Buy-back Plan, and basicallyreached the upper limit in the Buy-back Plan; The total amount of funds used to buy back sharesdid not reach the total amount of funds intended to be used to buy back shares in the Buy-backPlan, and the share buy-back matters have been completed in accordance with the established planby July 17, 2024.
Implementation progress of reducing holding buy-back share through the way of centralizedbidding?Available ?Not availableThe influence of share change on the financial indicators such as basic earnings per share, dilutedearnings per share of the latest year and the latest period, net asset per share belonging to theCompany’s common shareholders, etc.?Available ?Not availableOther contents the Company thinks necessary or securities regulatory departments ask to makepublic.?Available ?Not available
2) Changes in restricted shares
?Available ?Not available
2. Securities issuance and listing situation
?Available ?Not available
3. The number of shareholders of the Company and the shareholdings
| Total shareholders in the report period | 44,267 | Total number of preferred shareholder recovering voting power by the end of report period (if have) (see note 8) | 0 | |||||
| Shareholders holding more than 5% or the top 10 shareholders holding situation | ||||||||
| Name of Shareholders | Character of shareholders | (%) | Shares held until the end of the report period | Changes during the report period | Number of restricted shares | Number of unrestricted shares | Pledged or frozen | |
| Share status | Amount | |||||||
| YANTAI CHANGYU GROUP CO., LTD. | Domestic non-state legal person | 49.91% | 345,473,856 | 0 | 0 | 345,473,856 | Not available | 0 |
| SHENWAN HONGYUAN SECURITIES (HONGKONG) LIMITED | Foreign legal person | 1.03% | 7,101,352 | -1,960,000 | 0 | 7,101,352 | Not available | 0 |
| #Fengdi JIANG | Domestic natural person | 0.74% | 5,120,000 | -187,000 | 0 | 5,120,000 | Not available | 0 |
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Foreign legal person | 0.50% | 3,483,537 | 0 | 0 | 3,483,537 | Not available | 0 |
| GUOTAI JUNAN SECURITIES（HONG KONG） LIMITED | Foreign legal person | 0.49% | 3,358,492 | -3,560,346 | 0 | 3,358,492 | Not available | 0 |
| Social Security Fund 114 | Other | 0.47% | 3,253,455 | 2,658,000 | 0 | 3,253,455 | Not available | 0 |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.47% | 3,223,441 | -870,822 | 0 | 3,223,441 | Not available | 0 |
| HONG KONG SECURITIES CLEARING COMPANY LIMITED | Foreign legal person | 0.46% | 3,171,686 | -2,151,348 | 0 | 3,171,686 | Not available | 0 |
| Hongwei DENG | Domestic natural person | 0.40% | 2,790,816 | -116,500 | 0 | 2,790,816 | Not available | 0 |
| ICBC Credit Suisse Innovation Power Stock Type Securities Investment Fund | Other | 0.39% | 2,670,050 | 2,670,050 | 0 | 2,670,050 | Not available | 0 |
| Strategic investors or legal result of the placement of new shares to become a top 10 shareholders (see note 3) | No | |||||||
| The explanation for the associated relationship and accordant action | Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action relationship with the other 9 listed shareholders, while the relationship among the other shareholders is unknown. | |||||||
| Explanation of the above-mentioned shareholders’ entrustment/ fiduciary voting rights and waiver of the voting rights | No | |||||||
| Special explanation for the existence of a special repurchase account among the top 10 shareholders (see note 11) | Among the top ten shareholders, Yantai Changyu Pioneer Wine Co., Ltd. has a special securities account for buy-back, which is not listed among the top 10 shareholders according to regulations. During the reporting period, a total of 16,860,000 B shares of the company were bought back, accounting for 2.44% of the total share capital at the end of the reporting period. | |||||||
Shareholders holding more than 5%, the top 10 shareholders and the top 10 shareholders with unrestricted tradable shares participate in the lending ofshares involved in the refinancing business?Available ?Not available
The top 10 shareholders and the top 10 shareholders with unrestricted tradable shares have changed from the previous period due to refinancinglending/restitution reasons?Available ?Not available
Whether or not the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction during thereport period?Yes ?No
| The top 10 shareholders with shares without trading limited condition | |||
| Name of Shareholders | Number of shares without trading limited condition held until the end of the year | Type of share | |
| Type of share | Amount | ||
| YANTAI CHANGYU GROUP CO., LTD. | 345,473,856 | A | 345,473,856 |
| SHENWAN HONGYUAN SECURITIES (HONGKONG) LIMITED | 7,101,352 | B | 7,101,352 |
| #Fengdi JIANG | 5,120,000 | A | 5,120,000 |
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 3,483,537 | B | 3,483,537 |
| GUOTAI JUNAN SECURITIES（HONG KONG） LIMITED | 3,358,492 | B | 3,358,492 |
| Social Security Fund 114 | 3,253,455 | A | 3,253,455 |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 3,223,441 | B | 3,223,441 |
| HONG KONG SECURITIES CLEARING COMPANY LIMITED | 3,171,686 | A | 3,171,686 |
| Hongwei DENG | 2,790,816 | B | 2,790,816 |
| ICBC Credit Suisse Innovation Power Stock Type Securities Investment Fund | 2,670,050 | A | 2,670,050 |
| The explanation for the associated relationship and accordant action of the top 10 shareholders with unrestricted shares, the the associated relationship and accordant action between the top 10 shareholders with unrestricted shares and the top 10 shareholders | Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action relationship with the other 9 listed shareholders, and the relationship among the other shareholders is unknown. | ||
| Explanation for the top 10 shareholders who involved in financing activities and stock trading business (see note 4) | The top 10 shareholders do not involve in financing activities and stock trade business. | ||
There is no agreed repurchase transaction taken by the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares during thereport period.
4. Changes in shareholdings of directors, supervisors and senior executives?Available ?Not available
| Name | Position | Status | Number of Shares held at the beginning period (shares) | Increased number of shares held in the current period (shares) | Decreased number of shares held in the current period (shares) | Number of shares held at the end period (shares) | Number of restricted shares granted at the beginning period (shares) | Number of restricted shares granted in the current period (shares) | Number of restricted shares granted at the end period (shares) |
| ZHOU Hongjiang | Chairman | Incumbent | 279,600 | 279,600 | 240,000 | 0 | 240,000 | ||
| SUN Jian | Director and General Manager | Incumbent | 330,000 | 330,000 | 210,000 | 210,000 | |||
| LI Jiming | Director and Deputy General Manager | Incumbent | 160,000 | 160,000 | 160,000 | 160,000 | |||
| LIU Xunzhang | Director | Incumbent | |||||||
| CHEN Dianxin | Director | Outgoing | |||||||
| Aldino Marzorati | Director | Incumbent | |||||||
| JIANG Jianxun | Director, Deputy General Manager and Board secretary | Incumbent | 160,000 | 160,000 | 160,000 | 160,000 | |||
| Stefano Battioni | Director | Incumbent | |||||||
| Enrico Sivieri | Director | Incumbent |
CHIANGYun
| CHIANG Yun | Director | Incumbent | |||||||
| DUAN Changqing | Independent Director | Incumbent | |||||||
| LIU Huirong | Independent Director | Incumbent | |||||||
| LIU Qinglin | Independent Director | Incumbent | |||||||
| YU Renzhu | Independent Director | Incumbent | |||||||
| WANG Zhuquan | Independent Director | Incumbent | |||||||
| LENG Bin | Chairman of the Board Supervisory | Incumbent | |||||||
| Liu Zhijun | Supervisor | Incumbent | |||||||
| YU Jinfeng | Supervisor | Incumbent | |||||||
| ZHENG Wenping | Supervisor | Outgoing | |||||||
| JIANG Hua | Deputy General Manager | Incumbent | 170,000 | 170,000 | 160,000 | 160,000 | |||
| PENG Bin | Deputy General Manager | Incumbent | 160,000 | 160,000 | 160,000 | 160,000 | |||
| PAN Jianfu | General Manager Assistant | Incumbent | 100,000 | 100,000 | 100,000 | 100,000 | |||
| KONG Qingkun | General Manager Assistant | Incumbent | 100,000 | 100,000 | 100,000 | 100,000 | |||
| LIU Shilu | General Manager | Incumbent | 100,000 | 100,000 | 100,000 | 100,000 |
5. Changes in controlling shareholders or actual controllers
Changes in the controlling shareholders during the report period?Available ?Not availableThere is no any change in the controlling shareholders during the report period.Changes in the actual controllers during the report period?Available ?Not availableThere is no any change in the actual controllers during the report period.
| Assistant | |||||||||
| XIAO Zhenbo | General Manager Assistant | Incumbent | 100,000 | 100,000 | 100,000 | 100,000 | |||
| Total | -- | -- | 1,659,600 | 0 | 0 | 1,659,600 | 1,490,000 | 0 | 1,490,000 |
VIII. Related Situation of Preferred Shares
?Available ?Not availableThere are no preferred shares during the report period.
IX. Related Situation of Bonds
?Available ?Not available
X. Financial Report
1. Audit report
Whether the semiannual report has been audited
□ Yes √ No
2. Financial statement
The unit in the statements of the financial notes is RMB Yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2024 Unit:
yuan
| Item | Note | June 30, 2024 | December 31, 2023 |
| Current assets: | |||
| Monetary fund | 7.1 | 1,659,684,740 | 2,217,693,647 |
| Settlement reserves | |||
| Lending funds | |||
| Tradable financial assets | |||
| Derivative financial assets | |||
| Bills receivable | 7.2 | 440,667 | 1,260,000 |
| Accounts receivable | 7.3 | 172,184,919 | 382,132,334 |
| Receivables financing | 7.4 | 212,135,108 | 408,316,028 |
| Advance payment | 7.5 | 45,718,117 | 61,497,933 |
| Premium receivable | |||
| Reinsurance accounts receivable | |||
| Receivable reserves for reinsurance contract | |||
| Other receivables | 7.6 | 76,437,050 | 71,496,276 |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Redemptory monetary capital for sale | |||
| Inventories | 7.7 | 2,886,202,651 | 2,765,390,587 |
| Including: Data resource | |||
| Contract assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 7.8 | 72,912,415 | 88,368,542 |
| Total current assets | 5,125,715,667 | 5,996,155,347 | |
| Non-current assets: | |||
| Offering loans and imprest | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 7.9 | 36,353,528 | 38,285,620 |
| Other investments in equity instruments | |||
| Other non-current financial assets | |||
| Investment real estate | 7.10 | 23,237,000 | 24,482,831 |
| Fixed assets | 7.11 | 5,687,285,125 | 5,795,082,569 |
| Construction in progress | 7.12 | 10,097,466 | 3,323,241 |
| Productive biological assets | 7.13 | 170,252,547 | 177,461,983 |
| Oil-and-gas assets | |||
| Right-of-use assets | 7.14 | 112,742,536 | 121,745,910 |
Item
| Item | Note | June 30, 2024 | December 31, 2023 |
| Intangible assets | 7.15 | 535,248,176 | 542,625,776 |
| Including: Data resource | |||
| Development expenditure | |||
| Including: Data resource | |||
| Goodwill | 7.16 | 107,163,616 | 107,163,616 |
| Long-term prepaid expenses | 7.17 | 308,457,240 | 306,662,107 |
| Deferred income tax assets | 7.18 | 181,336,582 | 221,518,204 |
| Other non-current assets | 7.19 | 1,760,000 | |
| Total non-current assets | 7,172,173,816 | 7,340,111,857 | |
| Total assets | 12,297,889,483 | 13,336,267,204 | |
| Current liabilities: | |||
| Short-term loans | 7.21 | 202,057,523 | 364,981,445 |
| Borrowings from the Central Bank | |||
| Borrowing funds | |||
| Tradable financial liabilities | |||
| Derivative financial liabilities | |||
| Bills payable | |||
| Accounts payable | 7.22 | 397,974,969 | 473,352,525 |
| Advances from customers | |||
| Contract liabilities | 7.23 | 138,471,595 | 175,278,849 |
| Financial assets sold for repurchase | |||
| Deposits from customers and interbank | |||
| Receivings from vicariously traded securities | |||
| Receivings from vicariously sold securities | |||
| Employee remunerations payable | 7.24 | 87,669,532 | 185,331,292 |
| Taxes and dues payable | 7.25 | 145,797,124 | 274,723,431 |
| Other payables | 7.26 | 353,518,418 | 555,634,336 |
| Including: Interest payable | |||
| Dividends payable | 383,085 | ||
| Handling charges and commissions payable | |||
| Dividend payable for reinsurance | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 7.27 | 81,231,755 | 78,523,993 |
| Other current liabilities | 7.28 | 18,001,307 | 44,958,297 |
| Total current liabilities | 1,424,722,223 | 2,152,784,168 | |
| Non-current liabilities: | |||
| Reserves for insurance contracts | |||
| Long-term borrowings | 7.29 | 36,651,931 | 66,616,443 |
| Bonds payable | |||
| Including: Preferred stock | |||
| Perpetual bonds |
Item
| Item | Note | June 30, 2024 | December 31, 2023 |
| Lease liabilities | 7.30 | 68,134,685 | 85,038,335 |
| Long-term accounts payable | |||
| Long-term employee remunerations payable | |||
| Estimated liabilities | |||
| Deferred income | 7.31 | 29,292,739 | 32,582,734 |
| Deferred income tax liabilities | 7.18 | 8,329,523 | 8,719,729 |
| Other non-current liabilities | |||
| Total non-current liabilities | 142,408,878 | 192,957,241 | |
| Total liabilities | 1,567,131,101 | 2,345,741,409 | |
| Owner’s equities: | |||
| Capital stock | 7.32 | 692,249,559 | 692,249,559 |
| Other equity instruments | |||
| Including: Preferred stock | |||
| Perpetual bonds | |||
| Capital surplus | 7.33 | 675,434,203 | 651,086,707 |
| Minus: Treasury stock | 7.34 | 250,924,123 | 103,411,919 |
| Other comprehensive income | 7.35 | -24,854,346 | -14,784,677 |
| Special reserves | |||
| Surplus reserves | 7.36 | 342,732,000 | 342,732,000 |
| General risk preparation | |||
| Undistributed profit | 7.37 | 9,148,896,456 | 9,273,629,318 |
| Total owner’s equities attributable to the parent company | 10,583,533,749 | 10,841,500,988 | |
| Minority equity | 147,224,633 | 149,024,807 | |
| Total owner’s equities | 10,730,758,382 | 10,990,525,795 | |
| Total liabilities and owner’s equities | 12,297,889,483 | 13,336,267,204 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: GuoCuimei
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit:
yuan
| Item | Note | June 30, 2024 | December 31, 2023 |
| Current assets: | |||
| Monetary fund | 664,611,150 | 1,242,484,544 | |
| Tradable financial assets | |||
| Derivative financial assets | |||
| Bills receivable | |||
| Accounts receivable | 18.1 | 1,260,252 | 5,189,894 |
| Receivables financing | 30,006,125 | 36,322,019 | |
| Advance payment | 52,587 | ||
| Other receivables | 18.2 | 507,125,567 | 576,949,997 |
| Including: Interest receivable | |||
| Dividends receivable | 3,447,765 | ||
| Inventories | 397,600,313 | 323,465,919 | |
| Including: Data resource | |||
| Contract assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 22,212,993 | 147,187 | |
| Total current assets | 1,622,816,400 | 2,184,612,147 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 18.3 | 7,671,408,253 | 7,648,498,638 |
| Other investments in equity instruments | |||
| Other non-current financial assets | |||
| Investment real estate | 23,237,000 | 24,482,831 | |
| Fixed assets | 184,548,217 | 194,601,612 | |
| Construction in progress | 264,175 | 264,175 |
Item
| Item | Note | June 30, 2024 | December 31, 2023 |
| Productive biological assets | 97,461,785 | 100,785,279 | |
| Oil-and-gas assets | |||
| Right-of-use assets | 34,960,098 | 37,025,896 | |
| Intangible assets | 71,179,279 | 72,552,201 | |
| Including: Data resource | |||
| Development expenditure | |||
| Including: Data resource | |||
| Goodwill | |||
| Long-term prepaid expenses | |||
| Deferred income tax assets | 1,456,176 | 2,327,585 | |
| Other non-current assets | 1,977,430,000 | 1,934,430,000 | |
| Total non-current assets | 10,061,944,983 | 10,014,968,217 | |
| Total assets | 11,684,761,383 | 12,199,580,364 | |
| Current liabilities: | |||
| Short-term loans | 100,000,000 | ||
| Tradable financial liabilities | |||
| Derivative financial liabilities | |||
| Bills payable | |||
| Accounts payable | 48,661,601 | 63,686,113 | |
| Advances from customers | |||
| Contract liabilities | |||
| Employee remunerations payable | 58,772,991 | 68,654,350 | |
| Taxes and dues payable | 6,062,369 | 6,439,899 | |
| Other payables | 534,216,588 | 608,904,995 | |
| Including: Interest payable | |||
| Dividends payable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 5,167,038 | 3,803,910 | |
| Other current liabilities | |||
| Total current liabilities | 652,880,587 | 851,489,267 |
Item
| Item | Note | June 30, 2024 | December 31, 2023 |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preferred stock | |||
| Perpetual bonds | |||
| Lease liabilities | 37,162,717 | 42,380,074 | |
| Long-term accounts payable | |||
| Long-term employee remuneration payable | |||
| Estimated liabilities | |||
| Deferred income | 38,372 | 55,718 | |
| Deferred income tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 37,201,089 | 42,435,792 | |
| Total liabilities | 690,081,676 | 893,925,059 | |
| Owner’s equities: | |||
| Capital stock | 692,249,559 | 692,249,559 | |
| Other equity instruments | |||
| Including: Preferred stock | |||
| Perpetual bonds | |||
| Capital surplus | 712,672,729 | 687,544,350 | |
| Minus: Treasury stock | 250,924,123 | 103,411,919 | |
| Other comprehensive income | |||
| Special reserves | |||
| Surplus reserves | 342,732,000 | 342,732,000 | |
| Undistributed profit | 9,497,949,542 | 9,686,541,315 | |
| Total owner’s equities | 10,994,679,707 | 11,305,655,305 | |
| Total liabilities and owner’s equities | 11,684,761,383 | 12,199,580,364 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: GuoCuimei
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit:
yuan
| Item | Note | Sum of this period | Sum of prior period |
| 1. Total operating income | 1,522,309,436 | 1,966,738,485 | |
| Including: Operating income | 7.38 | 1,522,309,436 | 1,966,738,485 |
| Interest income | |||
| Earned premium | |||
| Handling fee and commission income | |||
| 2. Total operating costs | 1,243,403,652 | 1,528,483,622 | |
| Including: Operating costs | 7.38 | 595,748,730 | 805,459,392 |
| Interest expenditure | |||
| Handling fees and commission expenditure | |||
| Premium rebate | |||
| Net amount of indemnity expenditure | |||
| Net amount of the withdrawn reserve fund for insurance contract | |||
| Policy bonus payment | |||
| Reinsurance expenditures | |||
| Taxes and surcharges | 7.39 | 112,820,607 | 131,447,066 |
| Selling expenses | 7.40 | 391,916,515 | 453,001,710 |
| Administrative expenses | 7.41 | 132,945,615 | 128,695,395 |
| Research and development expenses | 7.42 | 6,748,675 | 6,653,626 |
| Financial expenses | 7.43 | 3,223,510 | 3,226,433 |
| Including: Interest expenses | 9,918,886 | 12,325,532 | |
| Interest income | 12,390,815 | 9,060,578 | |
| Plus: Other profit | 7.44 | 33,630,640 | 28,971,185 |
| Investment profit (loss is listed with “-”) | 7.45 | -1,932,092 | 15,614,536 |
| Including: Investment profit for joint-run business and joint venture | -1,932,092 | -932,588 | |
| Financial assets measured at amortized cost cease to be recognized as income | |||
| Exchange income (loss is listed with “-”) | |||
| Net exposure hedge income (loss is listed with “-”) | |||
| Income from fair value changes (loss is listed with “-”) | |||
| Credit impairment loss (loss is listed with “-”) | 7.46 | 4,083,362 | -993,494 |
| Asset impairment loss (loss is listed with “-”) | 7.47 | -1,024,683 | -244,434 |
| Income from asset disposal (loss is listed with “-”) | 7.48 | 4,647 | -298,401 |
| 3. Operating profit (loss is listed with “-”) | 313,667,658 | 481,304,255 | |
| Plus: Non-operating income | 7.49 | 1,677,625 | 1,772,522 |
| Minus: Non-operating expenses | 7.50 | 611,583 | 2,125,945 |
| 4. Total profits (total loss is listed with “-”) | 314,733,700 | 480,950,832 | |
| Minus: Income tax expenses | 7.51 | 92,758,345 | 130,350,513 |
| 5. Net profit (net loss is listed with “-”) | 221,975,355 | 350,600,319 |
Item
| Item | Note | Sum of this period | Sum of prior period |
| 5.1 Classification by operation continuity | |||
| 5.1.1 Net profit from continuing operation (net loss is listed with “-”) | 221,975,355 | 350,600,319 | |
| 5.1.2 Net profit from terminating operation (net loss is listed with “-”) | |||
| 5.2 Classification by ownership | |||
| 5.2.1 Net profit attributable to owner of the parent company | 221,177,382 | 363,569,436 | |
| 5.2.2 Minority interest income | 797,973 | -12,969,117 | |
| 6. Net after-tax amount of other comprehensive income | 7.52 | -11,182,076 | 13,707,142 |
| Net after-tax amount of other comprehensive income attributable to owner of the parent company | -10,069,669 | 12,136,065 | |
| 6.1 Other comprehensive income not to be reclassified into profit and loss later | |||
| 6.1.1 Changes after remeasuring and resetting the benefit plans | |||
| 6.1.2 Other comprehensive income not to be reclassified into profit and loss under equity method | |||
| 6.1.3 Changes in the fair value of other investments in equity instruments | |||
| 6.1.4 Changes in the fair value of the enterprise’s own credit risk | |||
| 6.1.5 Other | |||
| 6.2 Other comprehensive income to be reclassified into profit and loss later | -10,069,669 | 12,136,065 | |
| 6.2.1 Other comprehensive income to be reclassified into profit and loss under equity method | |||
| 6.2.2 Changes in the fair value of other debt investments | |||
| 6.2.3 Amount of financial assets reclassified into other comprehensive income | |||
| 6.2.4 Provision for credit impairment of other credit investments | |||
| 6.2.5 Provision for cash-flow hedge | |||
| 6.2.6 Difference in translation of Foreign Currency Financial Statement | -10,069,669 | 12,136,065 | |
| 6.2.7 Other | |||
| Net after-tax amount of other comprehensive income attributable to minority shareholders | -1,112,407 | 1,571,077 | |
| 7. Total comprehensive income | 210,793,279 | 364,307,461 | |
| Attributable to owner of the parent company | 211,107,713 | 375,705,501 | |
| Attributable to minority shareholders | -314,434 | -11,398,040 | |
| 8. Earnings per share: |
Item
| Item | Note | Sum of this period | Sum of prior period |
| 8.1 Basic earnings per share | 0.32 | 0.53 | |
| 8.2 Diluted earnings per share | 0.32 | 0.53 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: GuoCuimei
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit:
yuan
| Item | Note | Sum of this period | Sum of prior period |
| 1. Operating income | 18.4 | 185,899,536 | 241,967,096 |
| Minus: Operating costs | 18.4 | 166,106,938 | 200,913,318 |
| Taxes and surcharges | 4,511,741 | 9,139,640 | |
| Selling expenses | |||
| Administrative expenses | 31,118,671 | 19,481,354 | |
| Research and development expenses | 399,923 | 533,807 | |
| Financial expenses | -8,236,589 | -753,987 | |
| Including: Interest expenses | 2,318,915 | 2,862,882 | |
| Interest income | 4,102,498 | 4,368,355 | |
| Plus: Other profit | 608,617 | 774,925 | |
| Investment profit (loss is listed with “-”) | 18.5 | 164,552,732 | 149,080,018 |
| Including: Investment profit for joint-run business and joint venture | 54,934 | ||
| Financial assets measured at amortized cost cease to be recognized as income (loss is listed with “-”) | |||
| Net exposure hedge income (loss is listed with “-”) | |||
| Income from fair value changes (loss is listed with “-”) | |||
| Credit impairment loss (loss is listed with “-”) | -1,262 | -3,661 | |
| Asset impairment loss (loss is listed with “-”) | |||
| Income from asset disposal (loss is listed with “-”) | -639,633 |
Item
| Item | Note | Sum of this period | Sum of prior period |
| 2. Operating profit (loss is listed with “-”) | 157,158,939 | 161,864,613 | |
| Plus: Non-operating income | 415,749 | 167,110 | |
| Minus: Non-operating expenses | 505,099 | 914,209 | |
| 3. Total profits (total loss is listed with “-”) | 157,069,589 | 161,117,514 | |
| Minus: Income tax expenses | -248,882 | -405,243 | |
| 4. Net profit (net loss is listed with “-”) | 157,318,471 | 161,522,757 | |
| 4.1 Net profit from continuing operation (net loss is listed with “-”) | 157,318,471 | 161,522,757 | |
| 4.2 Net profit from terminating operation (net loss is listed with “-”) | |||
| 5. Net after-tax amount of other comprehensive income | |||
| 5.1 Other comprehensive income not to be reclassified into profit and loss later | |||
| 5.1.1 Changes after re-measuring and resetting the benefit plans | |||
| 5.1.2 Other comprehensive income not to be reclassified into profit and loss under equity method | |||
| 5.1.3 Changes in the fair value of other investments in equity instruments | |||
| 5.1.4 Changes in the fair value of the enterprise’s own credit risk | |||
| 5.1.5 Other | |||
| 5.2 Other comprehensive income to be reclassified into profit and loss later | |||
| 5.2.1 Other comprehensive income to be reclassified into profit and loss under equity method | |||
| 5.2.2 Changes in the fair value of other debt investments | |||
| 5.2.3 Amount of financial assets reclassified into other comprehensive income | |||
| 5.2.4 Provision for credit impairment of other credit investments | |||
| 5.2.5 Provision for cash-flow hedge | |||
| 5.2.6 Difference in translation of Foreign Currency Financial Statement | |||
| 5.2.7 Other | |||
| 6. Total comprehensive income | 157,318,471 | 161,522,757 | |
| 7. Earnings per share: | |||
| 7.1 Basic earnings per share | 0.23 | 0.23 |
Item
| Item | Note | Sum of this period | Sum of prior period |
| 7.2 Diluted earnings per share | 0.23 | 0.23 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: GuoCuimei
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan
| Item | Note | Sum of this period | Sum of prior period |
| 1. Cash flows from operating activities: | |||
| Cash received from sales of goods and rending of services | 1,866,371,505 | 2,065,105,263 | |
| Net increase in customer and interbank deposits | |||
| Net increase in borrowings from central bank | |||
| Net increase in borrowings from other financial institutions | |||
| Cash received from receiving insurance premium of original insurance contract | |||
| Net cash received from reinsurance business | |||
| Net increase in policy holder deposits and investment funds | |||
| Cash received from collecting interest, handling fees and commissions | |||
| Net increase in borrowing funds | |||
| Net increase in repurchased business funds | |||
| Net cash received for buying and selling securities | |||
| Tax refund received | 16,377,257 | 29,311,454 | |
| Other cash received related to operating activities | 7.53 | 48,893,252 | 47,251,102 |
| Subtotal of cash flows of operating activities | 1,931,642,014 | 2,141,667,819 | |
| Cash paid for goods and services | 758,417,685 | 622,088,864 | |
| Net increase in customer loans and advances | |||
| Net increase in deposits in central bank and interbank deposits | |||
| Cash paid to original insurance contract payments | |||
| Net increase in lending funds | |||
| Cash paid to interest, handling fees and commissions | |||
| Cash paid to policy bonus | |||
| Cash paid to and on behalf of employees | 264,499,866 | 241,778,846 | |
| Cash paid for taxes and expenses | 408,101,346 | 457,071,706 | |
| Other cash paid related to operating activities | 7.53 | 296,742,753 | 292,808,617 |
| Sub-total of cash outflows of operating activities | 1,727,761,650 | 1,613,748,033 | |
| Net cash flow from operating activities | 203,880,364 | 527,919,786 | |
| 2. Cash flow from investing activities: | |||
| Cash received from disinvestment | |||
| Cash received from withdrawal of fixed deposits | 413,000,000 | 6,000,000 |
Item
| Item | Note | Sum of this period | Sum of prior period |
| Cash received from obtaining investment income | |||
| Cash received from obtaining interest income | 2,589,064 | 167,919 | |
| Cash received from disposal of fixed assets, intangible assets and other long-term assets | 80,843 | 1,431,000 | |
| Net cash received from disposal of branch and other business unit | 7,238,585 | ||
| Other cash received related to investing activities | 657,049 | ||
| Subtotal of cash flows of investment activities | 415,669,907 | 15,494,553 | |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 67,893,118 | 60,515,887 | |
| Cash for investment | |||
| Cash paid for purchasing fixed deposits | 246,000,000 | 206,000,000 | |
| Net increase in hypothecated loan | |||
| Net cash paid for acquiring branch and other business unit | |||
| Other cash paid related to investment activities | |||
| Subtotal of cash outflows of investment activities | 313,893,118 | 266,515,887 | |
| Net cash flow from investing activities | 101,776,789 | -251,021,334 | |
| 3. Cash flow from financing activities | |||
| Cash received from acquiring investment | 13,900,832 | ||
| Including: Cash received from acquiring minority shareholders investment by branch | |||
| Cash received from acquiring loans | 307,063,337 | 295,974,371 | |
| Other cash received related to financing activities | |||
| Subtotal cash flows of financing activities | 307,063,337 | 309,875,203 | |
| Cash paid for paying debts | 484,652,320 | 419,615,315 | |
| Cash paid for distributing dividend and profit or paying interest | 359,372,568 | 319,861,482 | |
| Including: Dividend and profit paid to minority shareholders by branch | 70,317 | ||
| Other cash paid related to financing activities | 167,730,790 | 38,007,700 | |
| Subtotal of cash outflows of financing activities | 1,011,755,678 | 777,484,497 | |
| Net cash flow from financing activities | -704,692,341 | -467,609,294 | |
| 4. Influences of exchange rate fluctuation on cash and cash equivalents | -1,131,315 | 1,038,021 | |
| 5. Net Increase in cash and cash equivalents | -400,166,503 | -189,672,821 | |
| Plus: Balance at the beginning of the period of cash and cash equivalents | 1,963,155,752 | 1,612,753,600 | |
| 6. Balance at the end of the period of cash and cash equivalents | 1,562,989,249 | 1,423,080,779 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: GuoCuimei
2.6 Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan
| Item | Sum of this period | Sum of prior period |
| 1. Cash flows from operating activities: | ||
| Cash received from sales of goods and rending of services | 251,492,494 | 245,770,806 |
| Tax refund received | ||
| Other cash received related to operating activities | 8,000,504 | 10,820,471 |
| Subtotal of cash flows of operating activities | 259,492,998 | 256,591,277 |
| Cash paid for goods and services | 137,448,769 | 204,180,816 |
| Cash paid to and on behalf of employees | 34,244,388 | 22,218,740 |
| Cash paid for taxes and expenses | 23,228,320 | 43,953,062 |
| Other cash paid related to operating activities | 28,704,858 | 76,577,506 |
| Sub-total of cash outflows of operating activities | 223,626,335 | 346,930,124 |
| Net cash flow from operating activities | 35,866,663 | -90,338,847 |
| 2. Cash flow from investing activities: | ||
| Cash received from disinvestment | 27,690,000 | |
| Cash received from withdrawal of fixed deposits | 413,000,000 | |
| Cash received from obtaining investment income | 161,104,967 | 325,390,390 |
| Cash received from obtaining interest income | 2,589,064 | 167,919 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash received from disposal of branch and other business unit | ||
| Other cash received related to investing activities | 20,000,000 | |
| Subtotal of cash flows of investment activities | 596,694,031 | 353,248,309 |
| Cash paid to acquiring fixed assets, intangible assets and other long-term assets | 3,193,066 | 3,845,079 |
| Cash for investment | 1,883,538 | 20,161,100 |
| Cash paid for purchasing fixed deposits | 246,000,000 | 206,000,000 |
| Net cash paid for acquiring branch and other business unit |
Item
| Item | Sum of this period | Sum of prior period |
| Other cash paid related to investment activities | 198,200,000 | 44,230,000 |
| Subtotal of cash outflows of investment activities | 449,276,604 | 274,236,179 |
| Net cash flow from investing activities | 147,417,427 | 79,012,130 |
| 3. Cash flow from financing activities: | ||
| Cash received from acquiring investment | 13,900,832 | |
| Cash received from acquiring loans | 100,000,000 | |
| Other cash received related to financing activities | ||
| Subtotal cash flows of financing activities | 113,900,832 | |
| Cash paid for debts | 100,000,000 | 100,000,000 |
| Cash paid to distribute dividend, profit or pay interest | 347,324,780 | 310,002,967 |
| Other cash paid related to financing activities | 155,356,609 | 4,567,148 |
| Subtotal of cash outflows of financing activities | 602,681,389 | 414,570,115 |
| Net cash flow from financing activities | -602,681,389 | -300,669,283 |
| 4. Influences of exchange rate fluctuation on cash and cash equivalents | ||
| 5. Net Increase in cash and cash equivalents | -419,397,299 | -311,996,000 |
| Plus: Balance at the beginning of the period of cash and cash equivalents | 988,284,544 | 843,369,997 |
| 6. Balance at the end of the period of cash and cash equivalents | 568,887,245 | 531,373,997 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: GuoCuimei
2.7 Consolidated owner’s equities changing list
Unit: yuan
| Item | This period | ||||||||||||||
| Owner’s equities of the parent company | Minority equity | Total owner’s equities | |||||||||||||
| Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk preparation | Undistributed profits | Others | Subtotal | |||||
| Preferred stock | Perpetual bonds | Others | |||||||||||||
| 1. Balance at the end of last year | 692,249,559 | 651,086,707 | 103,411,919 | -14,784,677 | 342,732,000 | 9,273,629,318 | 10,841,500,988 | 149,024,807 | 10,990,525,795 | ||||||
| Plus: Accounting policies changing | |||||||||||||||
| Previous error correction | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance at the beginning of this year | 692,249,559 | 651,086,707 | 103,411,919 | -14,784,677 | 342,732,000 | 9,273,629,318 | 10,841,500,988 | 149,024,807 | 10,990,525,795 | ||||||
| 3. Increased or decreased amount in this period (reducing amount is listed with “-”) | 24,347,496 | 147,512,204 | -10,069,669 | -124,732,862 | -257,967,239 | -1,800,174 | -259,767,413 | ||||||||
| 3.1 Total comprehensive income | -10,069,669 | 221,177,382 | 211,107,713 | -314,434 | 210,793,279 | ||||||||||
| 3.2 Owner’s invested and reduced capital | 24,347,496 | 147,512,204 | -123,164,708 | -1,102,655 | -124,267,363 | ||||||||||
| 3.2.1 Owner’s invested common stock | 150,932,125 | -150,932,126 | -150,932,126 | ||||||||||||
| 3.2.2 Other equity instrument holders’ invested capital | |||||||||||||||
| 3.2.3 Amount of shares paid and reckoned in owner’s equities | 25,146,195 | -3,419,921 | 28,566,117 | 28,566,117 | |||||||||||
| 3.2.4 Others | -798,699 | -798,699 | -1,102,655 | -1,901,354 | |||||||||||
| 3.3 Profit distribution | -345,910,244 | -345,910,244 | -383,085 | -346,293,329 | |||||||||||
| 3.3.1 Accrued surplus reserves | |||||||||||||||
| 3.3.2 Accrued general risk preparation | |||||||||||||||
| 3.3.3 Distribution to owners (or shareholders) | -345,910,244 | -345,910,244 | -383,085 | -346,293,329 | |||||||||||
| 3.3.4 Others | |||||||||||||||
| 3.4 Internal transfer of owner’s equities | |||||||||||||||
| 3.4.1 Capital reserves transferred and increased capital (or capital stock) | |||||||||||||||
| 3.4.2 Surplus reserves transferred and increased capital (or capital | |||||||||||||||
stock)
| stock) | |||||||||||||||
| 3.4.3 Surplus reserves covering deficit | |||||||||||||||
| 3.4.4 Retained earnings carried over from the benefit plan variation | |||||||||||||||
| 3.4.5 Retained earnings carried over from other comprehensive income | |||||||||||||||
| 3.4.6 Others | |||||||||||||||
| 3.5 Special reserves | |||||||||||||||
| 3.5.1 Withdrawal in this period | |||||||||||||||
| 3.5.2 Usage in this period | |||||||||||||||
| 3.6 Others | |||||||||||||||
| 4. Balance at the end of this period | 692,249,559 | 675,434,203 | 250,924,123 | -24,854,346 | 342,732,000 | 9,148,896,456 | 10,583,533,749 | 147,224,633 | 10,730,758,382 |
Unit: yuan
| Item | Last period | ||||||||||||||
| Owner’s equities of the parent company | Minority equity | Total owner’s equities | |||||||||||||
| Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk preparation | Undistributed profits | Others | Subtotal | |||||
| Preferred stock | Perpetual bonds | Others | |||||||||||||
| 1. Balance at the end of last year | 685,464,000 | 524,968,760 | -23,760,238 | 342,732,000 | 9,049,649,211 | 10,579,053,733 | 246,526,561 | 10,825,580,294 | |||||||
| Plus: Accounting policies changing | |||||||||||||||
| Previous error correction | |||||||||||||||
| Other | |||||||||||||||
| 2. Balance at the beginning of this year | 685,464,000 | 524,968,760 | -23,760,238 | 342,732,000 | 9,049,649,211 | 10,579,053,733 | 246,526,561 | 10,825,580,294 | |||||||
| 3. Increased or decreased amount in this period (reducing amount is listed with “-”) | 6,785,559 | 126,117,947 | 103,411,919 | 8,975,561 | 223,980,107 | 262,447,255 | -97,501,754 | 164,945,501 | |||||||
| 3.1 Total comprehensive income | 8,975,561 | 532,438,907 | 541,414,468 | -5,862,264 | 535,552,204 | ||||||||||
| 3.2 Owner’s invested and reduced capital | 6,785,559 | 126,117,947 | 103,411,919 | 29,491,587 | -90,101,174 | -60,609,587 | |||||||||
| 3.2.1 Owner’s invested common stock | |||||||||||||||
| 3.2.2 Other equity instrument holders’ invested capital | |||||||||||||||
| 3.2.3 Amount of shares paid and reckoned in owner’s equities | 6,785,559 | 127,362,115 | 103,411,919 | 30,735,755 | 30,735,755 | ||||||||||
| 3.2.4 Others | -1,244,168 | -1,244,168 | -90,101,174 | -91,345,342 | |||||||||||
3.3 Profit distribution
| 3.3 Profit distribution | -308,458,800 | -308,458,800 | -1,538,316 | -309,997,116 | |||||||||||
| 3.3.1 Accrued surplus reserves | |||||||||||||||
| 3.3.2 Accrued general risk preparation | |||||||||||||||
| 3.3.3 Distribution to owners (or shareholders) | -308,458,800 | -308,458,800 | -1,538,316 | -309,997,116 | |||||||||||
| 3.3.4 Others | |||||||||||||||
| 3.4 Internal transfer of owner’s equities | |||||||||||||||
| 3.4.1 Capital reserves transferred and increased capital (or capital stock) | |||||||||||||||
| 3.4.2 Surplus reserves transferred and increased capital (or capital stock) | |||||||||||||||
| 3.4.3 Surplus reserves covering deficit | |||||||||||||||
| 3.4.4 Retained earnings carried over from the benefit plan amount | |||||||||||||||
| 3.4.5 Retained earnings carried over from other comprehensive income | |||||||||||||||
| 3.4.6 Others | |||||||||||||||
| 3.5 Special reserves | |||||||||||||||
| 3.5.1 Accrual in this period | |||||||||||||||
| 3.5.2 Usage in this period | |||||||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balance at the end of this period | 692,249,559 | 651,086,707 | 103,411,919 | -14,784,677 | 342,732,000 | 9,273,629,318 | 10,841,500,988 | 149,024,807 | 10,990,525,795 |
2.8 Owner’s equities changing list of the parent company
Unit: yuan
| Item | This period | |||||||||||
| Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Others | Total owner’s equities | |||
| Preferred stock | Perpetual bonds | Others | ||||||||||
| 1. Balance at the end of last year | 692,249,559 | 687,544,350 | 103,411,919 | 342,732,000 | 9,686,541,315 | 11,305,655,305 | ||||||
| Plus: Accounting policies changing | ||||||||||||
| Previous error correction | ||||||||||||
| Others | ||||||||||||
| 2. Balance at the beginning of this year | 692,249,559 | 687,544,350 | 103,411,919 | 342,732,000 | 9,686,541,315 | 11,305,655,305 | ||||||
| 3. Increased or decreased amount in this period (reducing amount is listed with “-”) | 25,128,379 | 147,512,204 | -188,591,773 | -310,975,598 | ||||||||
| 3.1 Total comprehensive income | 157,318,471 | 157,318,471 | ||||||||||
| 3.2 Owner’s invested and reduced capital | 25,128,379 | 147,512,204 | -122,383,825 | |||||||||
| 3.2.1 Owner’s invested common stock | 150,932,125 | -150,932,126 | ||||||||||
| 3.2.2 Other equity instrument holder’s invested capital | ||||||||||||
| 3.2.3 Amount of shares paid and reckoned in owner’s equities | 25,146,195 | -3,419,921 | 28,566,117 | |||||||||
| 3.2.4 Others | -17,816 | -17,816 | ||||||||||
| 3.3 Profit distribution | -345,910,244 | -345,910,244 | ||||||||||
| 3.3.1 Accrued surplus reserves | ||||||||||||
| 3.3.2 Distribution to owners (or shareholders) | -345,910,244 | -345,910,244 | ||||||||||
| 3.3.3 Others | ||||||||||||
| 3.4 Internal transfer of owner’s equities | ||||||||||||
| 3.4.1 Capital reserves transferred and increased capital (or capital stock) | ||||||||||||
| 3.4.2 Surplus reserves transferred and increased capital (or capital stock) | ||||||||||||
| 3.4.3 Surplus reserves covering deficit | ||||||||||||
| 3.4.4 Retained earnings carried over from the benefit plan amount | ||||||||||||
3.4.5 Retained earnings carried over from other
comprehensive income
| 3.4.5 Retained earnings carried over from other comprehensive income | ||||||||||||
| 3.4.6 Others | ||||||||||||
| 3.5 Special reserves | ||||||||||||
| 3.5.1 Accrual in this period | ||||||||||||
| 3.5.2 Usage in this period | ||||||||||||
| 3.6 Others | ||||||||||||
| 4. Balance at the end of this period | 692,249,559 | 712,672,729 | 250,924,123 | 342,732,000 | 9,497,949,542 | 10,994,679,707 |
Unit: yuan
| Item | Last period | |||||||||||
| Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Others | Total owner’s equities | |||
| Preferred stock | Perpetual bonds | Others | ||||||||||
| 1. Balance at the end of last year | 685,464,000 | 560,182,235 | 342,732,000 | 9,582,860,014 | 11,171,238,249 | |||||||
| Plus: Accounting policies changing | ||||||||||||
| Previous error correction | ||||||||||||
| Others | ||||||||||||
| 2. Balance at the beginning of this year | 685,464,000 | 560,182,235 | 342,732,000 | 9,582,860,014 | 11,171,238,249 | |||||||
| 3. Increased or decreased amount in this period (reducing amount is listed with “-”) | 6,785,559 | 127,362,115 | 103,411,919 | 103,681,301 | 134,417,056 | |||||||
| 3.1 Total comprehensive income | 412,140,101 | 412,140,101 | ||||||||||
| 3.2 Owner’s invested and reduced capital | 6,785,559 | 127,362,115 | 103,411,919 | 30,735,755 | ||||||||
| 3.2.1 Owner’s invested common stock | ||||||||||||
| 3.2.2 Other equity instrument holder’s invested capital | ||||||||||||
| 3.2.3 Amount of shares paid and reckoned in owner’s equities | 6,785,559 | 127,362,115 | 103,411,919 | 30,735,755 | ||||||||
| 3.2.4 Others | ||||||||||||
| 3.3 Profit distribution | -308,458,800 | -308,458,800 | ||||||||||
| 3.3.1 Accrued surplus reserves | ||||||||||||
3.3.2 Distribution to owners (or shareholders)
| 3.3.2 Distribution to owners (or shareholders) | -308,458,800 | -308,458,800 | ||||||||||
| 3.3.3 Others | ||||||||||||
| 3.4 Internal transfer of owner’s equities | ||||||||||||
| 3.4.1 Capital reserves transferred and increased capital (or capital stock) | ||||||||||||
| 3.4.2 Surplus reserves transferred and increased capital (or capital stock) | ||||||||||||
| 3.4.3 Surplus reserves covering deficit | ||||||||||||
| 3.4.4 Retained earnings carried over from the benefit plan amount | ||||||||||||
| 3.4.5 Retained earnings carried over from other comprehensive income | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Special reserves | ||||||||||||
| 3.5.1 Accrual in this period | ||||||||||||
| 3.5.2 Usage in this period | ||||||||||||
| 3.6 Others | ||||||||||||
| 4. Balance at the end of this period | 692,249,559 | 687,544,350 | 103,411,919 | 342,732,000 | 9,686,541,315 | 11,305,655,305 |
3. Company profile
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company” or the “Joint-stock Company”) wasincorporated as a joint-stock limited company in accordance with the Company Law of thePeople’s Republic of China (the “PRC”) in the merger and reorganization carried out byYantai Changyu Group Co., Ltd. (“Changyu Group”) with its assets and liabilities in relationto wine business. The Company and its subsidiary companies (hereinafter collectivelyreferred to as the “Group”) are engaged in the production and sale of wine, brandy andsparkling wine, planting and purchase of grapes, development of tourism resources, etc. Theregistered address of the Company is Yantai City, Shandong Province, and the office addressof the headquarters is 56 Dama Road, Zhifu District, Yantai City, Shandong Province.
As at June 30, 2024, the Company issued 692,249,559 shares accumulatively. Refer to Note
7.32 for details.
The parent company of the Group is Changyu Group incorporated in China, which wasultimately and actually controlled by four parties, including Yantai Guofeng InvestmentHolding Group Co., Ltd., ILLVA Saronno Holding Spa, International Finance Corporationand Yantai Yuhua Investment & Development Co., Ltd.
The financial statement and the consolidated financial statement of the Company wereapproved by the Board of Directors in August 20, 2024.
The details of scope of the consolidated financial statement in this period can be seen in Note10 “Equity in other entities”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Company prepares the financial statement on the basis of continuous operation.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30,2024, and no issues or situations causing major doubts to this ability are found. Therefore,this financial statement is prepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of Accounting Standards for BusinessEnterprises (ASBE) issued by the Ministry of Finance and gives a true and integrated view ofthe consolidated financial status and the financial status as at June 30, 2024, as well as theconsolidated operating result, the operating result, the consolidated cash flow and the cashflow of the Company from January to June 2024.
In addition, the financial statement of the Company also complies with the related disclosurerequirements for statement and its notes stipulated by Preparation Rules for InformationDisclosure by Companies Offering Securities to the Public No. 15 – General Provisions onFinancial Reports (2014 Revision) by the China Securities Regulatory Commission(hereinafter referred to as the “CSRC”).
5.2 Accounting period
The accounting year is from January 1 to December 31 in Gregorian calendar.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used forprocessing to the cash or cash equivalent is realized. The operating cycle of the Company is12 months.
5.4 Recording currency
Since Renminbi (RMB) is the currency of the main economic environment in which theCompany and the domestic subsidiary companies thereof are situated, the Company and thesubsidiary companies thereof adopt RMB as the recording currency. The overseas subsidiarycompanies thereof determine EUR, CLP and AUD as the recording currency according to themain economic environment in which they are situated. The currency in this financialstatement prepared by the Group is RMB.
5.5 Determination method and selection criteria for significant standards
| Item | Significant standards |
| Other significant payables / accounts payable with an aging of over 1 year | Single of other payables / accounts payable with an aging of over 1 year exceeding 0.5% of the Group’s total liabilities |
| Significant construction in progress | Single of construction in progress with the carrying amount exceeding 0.5% of the Group’s noncurrent assets |
| Significant non-wholly-owned subsidiary | Non-wholly-owned subsidiary with the book value of net assets attributable to minority shareholders exceeding 0.5% of the Group’s net assets |
| Significant cash flows from investing activities | Single of cash flows with the amount exceeding 0.5% of the Group’s total assets |
5.6 Accounting treatment method for business combination under common control andnon-common control
5.6.1 Business combination under common control
A business combination under common control is a business combination in which all of thecombining enterprises are ultimately controlled by the same party or same multiple partiesbefore and after the combination, and that control is not transitory. The assets and liabilitiesobtained by the combining party in the business combination shall be measured on the basis
of the carrying amount in the ultimate controlling party’s consolidated financial statement asat the combination date. Where there is a difference between the carrying amount of the netassets acquired and the carrying amount of the combination consideration paid (or the totalpar value of the shares issued), the stock premium in capital surplus shall be adjusted. If thestock premium in capital surplus is not sufficient to offset, the retained earnings shall beadjusted. The direct related expenses incurred for the business combination shall be includedin the current profit and loss when incurred. The combination date is the date on which thecombining party actually obtains control of the combined party.
5.6.2 Business combination under non-common control
A business combination under non-common control is a business combination in which all ofthe combining parties are not ultimately controlled by the same party or same multiple partiesbefore and after the combination. The sum of fair values of the assets paid by the Group, asthe acquirer, (including the acquiree’s equity the Group held before the acquisition date),liabilities incurred or assumed, and the equity securities issued on the acquisition date inexchange for the control over the acquiree, shall deduct the fair value of the acquiree’sidentifiable net assets acquired in the combination on the acquisition date. If the difference ispositive, it shall be recognized as goodwill; and if it is negative, it shall be included in thecurrent profit and loss. The direct expenses incurred for the business combination by theGroup shall be included in the current profit and loss. All the identifiable assets, liabilitiesand contingent liabilities which are obtained from the acquiree and meet the recognitionconditions shall be confirmed by the Group on the acquisition date according to the fair valuethereof. The acquisition date is the date on which the acquirer actually obtains control of theacquiree.
For a business combination involving entities not under common control and achieved instages, the Group re-measures its previously-held equity interest in the acquiree to itsacquisition-date fair value, and recognizes any resulting difference between the fair value andthe carrying amount as investment income or other comprehensive income for the currentperiod. Other comprehensive income and other changes in owner’s equities that can bereclassified into profit or loss under the equity method of accounting for the equity interest ofthe acquiree held before acquisition date shall be transferred to current investment income onthe purchase date; and if equity interests of the acquiree held before acquisition date areequity instrument investments measured at fair value with changes recognized in othercomprehensive income, other comprehensive income recognized before acquisition date shallbe transferred to retained earnings on acquisition date.
5.7 Determination standard of control and compiling methods of consolidated financialstatement
5.7.1 General principles
The consolidation scope of the consolidated financial statements is determined based oncontrol, including the Company and its controlled subsidiaries. Control refers to the Group’spower over the investee, enjoying variable returns through participation in related activitiesof the investee, and having the ability to use its power over the investee to influence its returnamount. When determining whether the Group has power over the investee, the Group onlyconsiders substantive rights related to the investee (including substantive rights enjoyed by
the Group itself and other parties). The financial condition, operating performance, and cashflows of the subsidiaries shall be included in the consolidated financial statements from thedate of control to the date of control termination.
The equity, profit and loss, and total comprehensive income attributable to minorityshareholders of the subsidiaries shall be separately presented in the shareholders’ equitysection of the consolidated balance sheet and the net profit and total comprehensive incomesection of the consolidated profit statement.
If the current losses shared by minority shareholders of the subsidiaries exceed their share ofthe subsidiaries’ initial owner’s equity, the balance shall still be offset against the minorityequity.
When the accounting period or accounting policies of a subsidiary are different from those ofthe Company, the Company has made necessary adjustments to the financial statements ofthe subsidiary based on the Company’s own accounting period or accounting policies. Allintra-group transactions and balances during the combination, including unrealizedintra-group transactions gains and losses, have been offset. If there is evidence that unrealizedlosses incurred in intra-group transactions are related to impairment losses of assets, the fullamount of such losses shall be recognized.
5.7.2 Subsidiaries acquired through a business combination
Where a subsidiary is acquired through a business combination involving entities undercommon control, when preparing the consolidated financial statements for current period,based on the carrying amounts of the assets and liabilities of the combined subsidiary in thefinancial statements of the ultimate controlling party, the combined subsidiary shall bedeemed to be included in the consolidation scope of the Company when the ultimatecontrolling party of the Company begins to exercise control over it, and the initial balanceand the comparative figures of the consolidated financial statements shall be correspondinglyadjusted.
Where a subsidiary is acquired through a business combination involving entities not undercommon control, when preparing the consolidated financial statements for current period,based on the fair value of identifiable assets and liabilities of the acquired subsidiarydetermined on the acquisition date, the acquired subsidiary shall be included in theconsolidation scope of the Company from the acquisition date.
5.7.3 Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses arerecognized as investment income for the current period. The remaining equity investment isre-measured at its fair value at the date when control is lost, any resulting gains or losses arealso recognized as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes ofits long-term equity investment in the subsidiary in stages, the following are considered todetermine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;- arrangements work together to achieve an overall commercial effect;- the occurrence of one arrangement is dependent on the occurrence of at least one otherarrangement;- one arrangement considered on its own is not economically justified, but it iseconomically justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, thetransactions conducted before the loss of control of the subsidiary are accounted for inaccordance with the accounting policy for partial disposal of equity investment insubsidiaries where control is retained.
If each of the multiple transactions forms part of a bundled transaction, each transaction shallbe treated as a transaction for disposing of the existing subsidiary and losing control. Thedifference between the disposal price and the net carrying value of the subsidiary that iscontinuously calculated from the acquisition date corresponding to the disposal investmentbefore losing control shall be included in other comprehensive income in the consolidatedfinancial statements, and be transferred when losing control to profit or loss of the periodlosing control.
5.7.4 Changes in minority equity
The difference between the cost of long-term equity investment acquired by the Companythrough the purchase of minority equity and the net asset share of the subsidiary calculatedbased on the newly increased shareholding ratio, as well as the difference between thedisposal price obtained from partial disposal of equity investment in the subsidiary withoutlosing control and the net asset share of the subsidiary corresponding to the disposal oflong-term equity investment, shall be adjusted to the capital reserve (share premium) in theconsolidated balance sheet. And if the capital reserve (share premium) is insufficient tooffset, the retained earnings shall be adjusted.
5.8 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be used for payment atany time, and short-term highly liquid investments which are readily convertible into knownamount of cash with an insignificant risk of changes in value.
5.9 Foreign currency transaction and foreign currency statement translationWhen the Group receives capital in foreign currencies from investors, the capital is translatedto Renminbi at the spot exchange rate at the date of the receipt. Other foreign currencytransactions are, on initial recognition, translated to Renminbi at the spot exchange rates.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generallyrecognized in current profit or loss, unless they arise from the re-translation of the principaland interest of specific borrowings for the acquisition and construction of qualifying assets.Non-monetary items that are measured at historical cost in foreign currencies are translated toRenminbi using the exchange rate at the transaction date.In translating the financial statements of a foreign operation, assets and liabilities of foreignoperation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items, excluding undistributed profit and the translation differences in othercomprehensive income, are translated to Renminbi at the spot exchange rates at thetransaction date. Income and expenses in the income statement are translated to Renminbi atthe spot exchange rates at the transaction date. The resulting translation differences generatedby the above conversion are recognized in other comprehensive income. The translationdifferences accumulated in other comprehensive income with respect to a foreign operationare transferred to profit or loss in the period when the foreign operation is disposed.
5.10 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equitysecurities other than those classified as long-term equity investments, receivables, payables,loans and borrowings and share capital.
5.10.1 Recognition and initial measurement of financial assets and financial liabilitiesA financial asset and financial liability is recognized in the balance sheet when the Groupbecomes a party to the contractual provisions of a financial instrument.
A financial asset (unless it is a trade receivable without a significant financing component)and financial liability is measured initially at fair value. For financial assets and financialliabilities at fair value through profit or loss, any related directly attributable transaction costsare charged to profit or loss; for other categories of financial assets and financial liabilities,any related attributable transaction costs are included in their initial costs. Accountsreceivable containing no significant financing component or not considering financingcomponent of contracts that do not exceed one year are measured initially at transactionprices determined by the accounting policies set out in Note 5.22.
5.10.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets of this Group
The classification of financial assets is generally based on the business model in which afinancial asset is managed and its contractual cash flow characteristics. On initial recognition,a financial asset is classified as measured at amortized cost, at fair value through othercomprehensive income (“FVOCI”), or at fair value through profit or loss (“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless the Groupchanges its business model for managing financial assets in which case all affected financialassets are reclassified on the first day of the first reporting period following the change in thebusiness model.
A financial asset is measured at amortized cost if it meets both of the following conditionsand is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractualcash flows; and- its contractual terms give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and isnot designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collectingcontractual cash flows and selling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group mayirrevocably elect to present subsequent changes in the investment’s fair value in othercomprehensive income. This election is made on an investment-by-investment basis. Theinstrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortized cost or FVOCI as described aboveare measured at FVTPL. On initial recognition, the Group may irrevocably designate afinancial asset that otherwise meets the requirements to be measured at amortized cost or atFVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatchthat would otherwise arise.
The business model refers to how the Group manages its financial assets in order to generatecash flows. That is, the Group’s business model determines whether cash flows will resultfrom collecting contractual cash flows, selling financial assets or both. The Group determinesthe business model for managing the financial assets according to the facts and based on thespecific business objective for managing the financial assets determined by the Group’s keymanagement personnel.
In assessing whether the contractual cash flows are solely payments of principal and interest,the Group considers the contractual terms of the instrument. For the purposes of thisassessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.‘Interest’ is defined as consideration for the time value of money and for the credit riskassociated with the principal amount outstanding during a particular period of time and forother basic lending risks and costs, as well as a profit margin. The Group also assesseswhether the financial asset contains a contractual term that could change the timing oramount of contractual cash flows such that it would not meet this condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses,including any interest or dividend income, are recognized in profit or loss unless the financialassets are part of a hedging relationship.
- Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method.A gain or loss on a financial asset that is measured at amortized cost and is not part of ahedging relationship shall be recognized in profit or loss when the financial asset isderecognized and reclassified, through the amortization process or in order to recognizeimpairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using theeffective interest method, impairment and foreign exchange gains and losses are recognizedin profit or loss. Other net gains and losses are recognized in other comprehensive income.On derecognition, gains and losses accumulated in other comprehensive income arereclassified to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income inprofit or loss. Other net gains and losses are recognized in other comprehensive income. Onderecognition, gains and losses accumulated in other comprehensive income are reclassifiedto retained earnings.
5.10.3 Classification and subsequent measurement of financial liabilitiesFinancial liabilities are classified as measured at FVTPL or amortized cost by the Group.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (includingderivative financial liability) or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains andlosses, including any interest expense, are recognized in profit or loss, unless the financialliabilities are part of a hedging relationship.
- Financial liabilities at amortized cost
These financial liabilities are subsequently measured at amortized cost using the effectiveinterest method.
5.10.4 Offsetting
Financial assets and financial liabilities are generally presented separately in the balancesheet, and are not offset. However, a financial asset and a financial liability are offset and thenet amount is presented in the balance sheet when both of the following conditions aresatisfied:
- The Group currently has a legally enforceable right to set off the recognized amounts；- The Group intends either to settle on a net basis, or to realize the financial asset and settlethe financial liability simultaneously.
5.10.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognized when one of the following conditions is met:
- the contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of therisks and rewards of ownership of the financial asset; or- the financial asset has been transferred, although the Group neither transfers norretains substantially all of the risks and rewards of ownership of the financial asset, it doesnot retain control over the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, thedifference between the two amounts below is recognized in current profit or loss:
- the carrying amount of the financial asset transferred measured at the date ofderecognition;- the sum of the consideration received from the transfer and, when the transferredfinancial asset is a debt investment at FVOCI, any cumulative gain or loss that has beenrecognized directly in other comprehensive income for the part derecognized.
The Group derecognizes a financial liability (or part of it) only when its contractualobligation (or part of it) is extinguished.
5.10.6 Impairment
The Group recognizes loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortized cost;- financial investments at fair value through other comprehensive income
Financial assets measured at fair value, including debt investments or equity securities atFVPL, equity securities designated at FVOCI and derivative financial assets, are not subjectto the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as thepresent value of all cash shortfalls (i.e. the difference between the cash flows due to the entityin accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period(including extension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected lifeof a financial instrument.
ECLs within the next 12 months refers to the ECLs that may occur due to a financialinstrument default event within 12 months after the balance sheet date (if the expectedduration of the financial instrument is less than 12 months, it is within the expected duration),and is a part of the ECLs for the entire duration.For bills receivable, accounts receivable, accounts receivable financing generated from dailybusiness activities such as selling goods and providing services, loss allowance alwaysmeasured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimatedusing a provision matrix based on the Group’s historical credit loss experience, adjusted forfactors that are specific to the debtors and an assessment of both the current and forecastgeneral economic conditions at the balance sheet date.
For assets other than bills receivable, accounts receivable, accounts receivable financing thatmeet one of the following conditions, loss allowance are measured at an amount equal to12-month ECLs. For all other financial instruments, the Group recognizes a loss allowanceequal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;or- If the credit risk on a financial instrument has not increased significantly since initialrecognition.
Bad debt provision for accounts receivable
(a) Combination categories and determination criteria for bad debt provision based on creditrisk characteristics
| Bills receivable | According to the different credit risk characteristics of the acceptor, the Group divides bills receivable into two combinations: bank acceptance bills and commercial acceptance bills. |
| Accounts receivable | Based on the historical experience of this Group, there is no significant difference in the occurrence of losses among different segmented customer groups. Therefore, this Group considers all accounts receivable as a combination and does not further differentiate between different customer groups when calculating the bad debt provision for accounts receivable. |
| Accounts receivable financing | The accounts receivable financing of this Group is for accounts receivable bank acceptance bills with dual holding purposes. Due to the fact that the accepting banks are all banks with high credit ratings, this Group considers all accounts receivable financing as a combination. |
Otherreceivables
| Other receivables | The other receivables of this Group mainly include deposits receivable and security deposits. Based on the nature of accounts receivable and the credit risk characteristics of different counterparties, the Group divides other accounts receivable into two combinations, namely: combination of deposits receivable and security deposits, and combination of other accounts receivable. |
(b) Determination criteria for single provision of bad debt reserves based on individualprovision
For bills receivable, accounts receivable, accounts receivable financing, and other accountsreceivable, the Group usually measures its loss provision based on a combination of creditrisk characteristics. If the credit risk characteristics of a counterparty are significantlydifferent from those of other counterparties in the portfolio, or if there is a significant changein the credit risk characteristics of that counterparty, a separate provision for loss shall bemade for accounts receivable from that counterparty. For example, when a counterpartyexperiences serious financial difficulties and the ECL rate of accounts receivable from thatcounterparty is significantly higher than the ECL rate of its aging range, a separate provisionfor loss shall be made for it.Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has alow risk of default, the borrower has a strong capacity to meet its contractual cash flowobligations in the near term and adverse changes in economic and business conditions in thelonger term may, but will not necessarily, reduce the ability of the borrower to fulfil itscontractual cash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly sinceinitial recognition, the Group compares the risk of default occurring on the financialinstrument assessed at the balance sheet date with that assessed at the date of initialrecognition.
When determining whether the credit risk of a financial asset has increased significantlysince initial recognition and when estimating ECL, the Group considers reasonable andsupportable information that is relevant and available without undue cost or effort, includingforward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;- an actual or expected significant deterioration in a financial instrument’s external orinternal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor; and- existing or forecast changes in the technological, market, economic or legal environmentthat have a significant adverse effect on the debtor’s ability to meet its obligation to theGroup.
Depending on the nature of the financial instruments, the assessment of a significant increasein credit risk is performed on either an individual basis or a collective basis. When the
assessment is performed on a collective basis, the financial instruments are grouped based onshared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it ismore than 30 days past due.
Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried at amortizedcost and debt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’when one or more events that have a detrimental impact on the estimated future cash flows ofthe financial asset have occurred. Evidence that a financial asset is credit-impaired includesthe following observable data:
- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, theGroup having granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganization; or- the disappearance of an active market for that financial asset because of financialdifficulties.
Presentation of allowance for ECL
ECLs are re-measured at each balance sheet date to reflect changes in the financialinstrument’s credit risk since initial recognition. Any change in the ECL amount is recognizedas an impairment gain or loss in profit or loss. The Group recognizes an impairment gain orloss for all financial instruments with a corresponding adjustment to their carrying amountthrough a loss allowance account, except for debt investments that are measured at FVOCI,for which the loss allowance is recognized in other comprehensive income.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to theextent that there is no realistic prospect of recovery. A write-off constitutes a derecognitionevent. This is generally the case when the Group determines that the debtor does not haveassets or sources of income that could generate sufficient cash flows to repay the amountssubject to the write-off. However, financial assets that are written off could still be subject toenforcement activities in order to comply with the Group’s procedures for recovery ofamounts due.
Subsequent recoveries of an asset that was previously written off are recognized as a reversalof impairment in profit or loss in the period in which the recovery occurs.
5.10.7 Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is
recognized in shareholders’ equity. Consideration and transaction costs paid by the Companyfor repurchasing self-issued equity instruments are deducted from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasury shares.All expenditure relating to the repurchase is recorded in the cost of the treasury shares, withthe transaction recording in the share register. Treasury shares are excluded from profitdistributions and are presented as a deduction under shareholders’ equity in the balance sheet.
5.11 Inventories
5.11.1 Classification and cost
Inventories include raw materials, work in progress and reusable materials. Inventories areinitially measured at cost. Cost of inventories comprises all costs of purchase, costs ofconversion and other expenditure incurred in bringing the inventories to their present locationand condition. In addition to the purchase cost of raw materials, work in progress andfinished goods include direct labor costs and an appropriate allocation of productionoverheads.
Agricultural products harvested are reported in accordance with the Accounting Standard forBusiness Enterprises No. 1 - Inventories.
5.11.2 Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are amortized whenthey are used. The amortization charge is included in the cost of the related assets orrecognized in profit or loss for the current period.
5.11.3 Basis for determining the net realizable value and method for provision for obsoleteinventoriesAt the balance sheet date, inventories are carried at the lower of cost and net realizable value.
Net realizable value is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale and relevanttaxes. The net realizable value of materials held for use in the production is measured basedon the net realizable value of the finished goods in which they will be incorporated. The netrealizable value of the inventory held to satisfy sales or service contracts is measured basedon the contract price, to the extent of the quantities specified in sales contracts, and the excessportion of inventories is measured based on general selling prices.
Any excess of the cost over the net realizable value of each item of inventories is recognizedas a provision for impairment, and is recognized in profit or loss.
5.11.4 Inventory count system
The Group maintains a perpetual inventory system.
5.12 Long-term equity investments
5.12.1 Investment cost determination of long-term equity investments(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combinationinvolving entities under common control is the Company’s share of the carrying amount ofthe subsidiary’s equity in the consolidated financial statements of the ultimate controllingparty at the combination date. The difference between the initial investment cost and thecarrying amount of the consideration given is adjusted to the share premium in the capitalreserve, with any excess adjusted to retained earnings. For a long-term equity investment in asubsidiary acquired through a business combination achieved in stages which do not form abundled transaction and involving entities under common control, the Company determinesthe initial cost of the investment in accordance with the above policies. The differencebetween this initial cost and the sum of the carrying amount of previously-held investmentand the consideration paid for the shares newly acquired is adjusted to capital premium in thecapital reserve, with any excess adjusted to retained earnings.- For a long-term equity investment obtained through a business combination not involvingenterprises under common control, the initial cost comprises the aggregate of the fair value ofassets transferred, liabilities incurred or assumed, and equity securities issued by theCompany, in exchange for control of the acquiree. For a long-term equity investmentobtained through a business combination not involving entities under common control andachieved through multiple transactions in stages which do not form a bundled transaction, theinitial cost comprises the carrying amount of the previously-held equity investment in theacquiree immediately before the acquisition date, and the additional investment cost at theacquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination isinitially recognized at the amount of cash paid if the Group acquires the investment by cash,or at the fair value of the equity securities issued if an investment is acquired by issuingequity securities.
5.12.2 Subsequent measurement and profit and loss recognition methods of long-term equityinvestment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in subsidiariesare accounted for using the cost method unless the investment is classified as held for sale.Except for cash dividends or profit distributions declared but not yet distributed that have
been included in the price or consideration paid in obtaining the investments, the Companyrecognizes its share of the cash dividends or profit distributions declared by the investee asinvestment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less impairment losses.
For the impairment testing method and impairment provision method of the investments insubsidiaries, refer to Note 5.21.
In the Group’s consolidated financial statements, subsidiaries are accounted for in accordancewith the policies described in Note 5.6.
(b) Investments in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control andrights to the net assets of the arrangement.
An associate is an enterprise the Group can exert significant influence on.
A long-term equity investment in a joint venture and associate is accounted for using theequity method for subsequent measurement, unless the investment is classified as held forsale.
The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest in thefair value of the investee’s identifiable net assets at the date of acquisition, the investment isinitially recognized at cost. Where the initial investment cost is less than the Group’s interestin the fair value of the investee’s identifiable net assets at the date of acquisition, theinvestment is initially recognized at the investor’s share of the fair value of the investee’sidentifiable net assets, and the difference is recognized in current profit or loss.
- After the acquisition of the investment in joint ventures and associates, the Grouprecognizes its share of the investee’s profit or loss and other comprehensive income asinvestment income or losses and other comprehensive income respectively, and adjusts thecarrying amount of the investment accordingly. Once the investee declares any cashdividends or profit distributions, the carrying amount of the investment is reduced by theamount attributable to the Group. Changes in the Group’s share of the investee’s owners’equity, other than those arising from the investee’s net profit or loss, other comprehensiveincome or profit distribution (referred to as “other changes in owners’ equity”), is recognizeddirectly in the Group’s equity, and the carrying amount of the investment is adjusted
accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive incomeand other changes in owners’ equity, the Group recognizes investment income and othercomprehensive income after making appropriate adjustments to align the accounting policiesor accounting periods with those of the Group based on the fair value of the investee’sidentifiable net assets at the date of acquisition. Unrealized profits and losses resulting fromtransactions between the Group and its associates or joint ventures are eliminated to theextent of the Group’s interest in the associates or joint ventures. Unrealized losses resultingfrom transactions between the Group and its associates or joint ventures are eliminated in thesame way as unrealized gains but only to the extent that there is no impairment.
- The Group discontinues recognizing its share of further losses of the investee after thecarrying amount of the long-term equity investment and any long-term interest that insubstance forms part of the Group’s net investment in the associate is reduced to zero, exceptto the extent that the Group has an obligation to assume additional losses. If the joint ventureor the associate subsequently reports net profits, the Group resumes recognizing its share ofthose profits only after its share of the profits equals the share of losses not recognized.
For the impairment testing method and impairment provision method of the investments injoint ventures and associates of this Group, refer to Note 5.21.
5.12.3 Criteria for determining the existence of joint control and significant impact over aninvesteeJoint control is the contractually agreed sharing of control of an arrangement, which existsonly when decisions about the relevant activities (activities with significant impact on thereturns of the arrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group can exercisejoint control over an investee:
- Whether no single participant party is in a position to control the investee’s relatedactivities unilaterally;- Whether strategic decisions relating to the investee’s related activities require theunanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policydecisions of an investee but does not have control or joint control over those policies.
5.13 Investment properties
Investment properties are properties held either to earn rental income or for capitalappreciation or for both. Investment properties are accounted for using the cost model and
stated in the balance sheet at cost less accumulated depreciation, amortization andimpairment losses, and adopts a depreciation or amortization policy for the investmentproperty which is consistent with that for buildings or land use rights, unless the investmentproperty is classified as held for sale. For the impairment testing method and impairmentprovision method, refer to Note 5.21.
| Category | Useful life (years) | Residual value rate (%) | Annual depreciation rate (%) |
| Plant and buildings | 20-40 years | 0-5% | 2.4%-5.0% |
5.14 Fixed assets
5.14.1 Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods,supply of services, for rental or for administrative purposes with useful lives over oneaccounting year.
The initial cost of a purchased fixed asset comprises the purchase price, related taxes, andany attributable expenditure for bringing the asset to working condition for its intended use.The initial cost of self-constructed fixed assets is measured in accordance with the policy setout in Note 5.15.
Where the parts of an item of fixed assets have different useful lives or provide benefits to theGroup in a different pattern, thus necessitating use of different depreciation rates or methods,each part is recognized as a separate fixed asset.
For any subsequent cost of fixed assets, including the cost of replacing part of an item offixed assets, when it is probable that the economic benefits associated with the costs will flowto the Group, it shall be capitalized and included in the cost of fixed assets, and the carryingamount of the replaced part is derecognized meanwhile; and the costs related to theday-to-day maintenance of fixed assets shall be recognized in current profit or loss asincurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation andimpairment losses.
5.14.2 Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairment losses,is depreciated using the straight-line method over its estimated useful life, unless the fixedasset is classified as held for sale.
The useful lives, residual value rates and annual depreciation rates of each class of fixed
assets are as follows:
| Class | Useful life (years) | Residual value rate (%) | Annual depreciation rate (%) |
| Plant and buildings | 20-40 years | 0-5% | 2.4%-5.0% |
| Machinery equipment | 5-30 years | 0-5% | 3.2%-20.0% |
| Motor vehicles | 4-12 years | 0-5% | 7.9%-25.0% |
Useful lives, estimated residual values and depreciation methods are reviewed at least at eachyear-end.
5.14.3 For impairment testing method and impairment provision method, refer to Note 5.21.
5.14.4 Disposal of fixed assets
The Group will derecognize of a fixed asset when meeting one of the following conditions:
- when the fixed asset is holding for disposal; or- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset aredetermined as the difference between the net disposal proceeds and the carrying amount ofthe item, and are recognized in profit or loss on the date of retirement or disposal.
5.15 Construction in progress
The cost of self-constructed fixed assets includes the cost of materials, direct labor,capitalized borrowing costs, and necessary costs attributable to bringing the asset to workingcondition for its intended use.
A self-constructed fixed asset is classified as construction in progress and transferred to fixedasset when it is ready for its intended use. No depreciation is provided against construction inprogress.
Construction in progress is stated in the balance sheet at cost less impairment losses (seeNote 5.21).
If an enterprise sells products or by-products produced by fixed assets before they reach theirintended usable state to the outside parties, in accordance with the provisions of AccountingStandards for Business Enterprises No. 14 – Revenue and Accounting Standards for BusinessEnterprises No. 1 – Inventories, relevant income and costs shall be accounted for separatelyand included in profit or loss for the current period.
5.16 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition, and construction orproduction of a qualifying asset are capitalized as part of the cost of the asset. Otherborrowing costs are recognized as financial expenses when incurred.
During the capitalization period, the amount of interest (including amortization of anydiscount or premium on borrowing) to be capitalized in each accounting period is determinedas follows:
- Where funds are borrowed specifically for the acquisition and construction or productionof a qualifying asset, the amount of interest to be capitalized is the interest expense calculatedusing effective interest rates during the period less any interest income earned fromdepositing the borrowed funds or any investment income on the temporary investment ofthose funds before being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisitionand construction or production of a qualifying asset, the amount of borrowing costs eligiblefor capitalization is determined by applying a capitalization rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amounts ofspecific borrowings. The capitalization rate is the weighted average of the interest ratesapplicable to the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated futurecash flow through the expected life of the borrowing or, when appropriate, a shorter period tothe initially recognized amount of the borrowings.
During the capitalization period, exchange differences related to the principal and interest ona specific-purpose borrowing denominated in foreign currency are capitalized as part of thecost of the qualifying asset. The exchange differences related to the principal and interest onforeign currency borrowings other than a specific-purpose borrowing are recognized as afinancial expense when incurred.
The capitalization period is the period from the date of commencement of capitalization ofborrowing costs to the date of cessation of capitalization, excluding any period over whichcapitalization is suspended. Capitalization of borrowing costs commences when expenditurefor the asset is being incurred, borrowing costs are being incurred and activities ofacquisition, construction or production that are necessary to prepare the asset for its intendeduse are in progress, and ceases when the assets become ready for their intended use.Capitalization of borrowing costs should cease when the qualifying asset being constructed orproduced has reached its expected usable or saleable condition. Capitalization of borrowingcosts is suspended when the acquisition, construction or production activities are interruptedabnormally for a period of more than three months.
5.17 Biological assets
The biological assets of the Group are productive biological assets.
Productive biological assets are biological assets held for the purposes of producingagricultural produce, rendering of services or rental. Productive biological assets in the Groupare vines. Productive biological assets are initially measured at cost. The cost of self-grownor self-bred productive biological assets represents the necessary attributable expenditureincurred before satisfying the expected production and operating purpose, includingcapitalized borrowing costs.
Productive biological assets, after reaching the expected production and operating purpose,are depreciated using the straight-line method over its useful life. The useful lives, estimatednet residual value rates and annual depreciation rates of productive biological assets are asfollows:
| Category | Useful life (years) | Estimated net residual rate (%) | Annual depreciation rate (%) |
| Vines | 20 years | 0% | 5.0% |
The Group evaluates the useful life and expected net residential value by considering thenormal producing life of the productive biological assets.
Useful lives, estimated residual values and depreciation methods of productive biologicalassets are reviewed at least at each year-end. Any changes should be treated as changes inaccounting estimates.
For a productive biological asset that has been sold, damaged, dead or destroyed, anydifference between the disposal proceeds and the carrying amount of the asset (after taxdeduction) should be recognized in profit or loss for the period in which it arises.
5.18 Intangible assets
Service life and amortization method
Intangible assets are stated in the balance sheet at cost less accumulated amortization (wherethe estimated useful life is finite) and impairment losses (see Note 5.21). For an intangibleasset with finite useful life, its cost estimated less residual value and accumulated impairmentlosses is amortized on the straight-line method over its estimated useful life, unless theintangible asset is classified as held for sale.
The respective service life, determination basis, and amortization method for intangibleassets are as follows:
| Item | Service life (years) | Determination basis | Amortization method |
| Land use rights | 40 – 50 years | Period of land use rights | Straight-line method |
| Software licenses | 5 – 10 years | The shorter one of software service life or expected service life | Straight-line method |
| Trademark rights | 10 years | The shorter one of duration of trademark rights or expected service life | Straight-line method |
The useful life and amortization method of intangible assets with limited useful life arereviewed at least at each year-end.
An intangible asset is regarded as having an indefinite useful life and is not amortized whenthere is no foreseeable limit to the period over which the asset is expected to generateeconomic benefits for the Group. At the balance sheet date, the Group had intangible assetswith infinite useful lives including the land use rights and trademarks. Land use rights withinfinite useful lives are permanent land use rights with permanent ownership held by theGroup under the relevant Chile and Australian laws arising from the Group’s acquisition ofVi?a Indómita, S.A., Vi?a Dos Andes, S.A., and Bodegas Santa Alicia SpA. (collectivelyreferred to as the “Chile Indomita Wine Group”), and the acquisition of Kilikanoon EstatePty Ltd (hereinafter referred to as the “Australia Kilikanoon Estate”), therefore there was noamortization. The right to use trademark refers to the trademark held by the Group arisingfrom the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estatewith infinite useful lives. The valuation of trademark was based on the trends in the marketand competitive environment, product cycle, and managing long-term development strategy.Those bases indicated the trademark will provide net cash flows to the Group within anuncertain period. The useful life is indefinite as it was hard to predict the period that thetrademark would bring economic benefits to the Group.
5.19 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’sinterest in the fair value of the identifiable net assets of the acquiree under a businesscombination not involving entities under common control.
Goodwill is not amortized and is stated in the balance sheet at cost less accumulatedimpairment losses (see Note 5.21). On disposal of an asset group or a set of asset groups, anyattributable goodwill is written off and included in the calculation of the profit or loss ondisposal.
5.20 Long-term deferred expenses
Long-term deferred expenses are amortized using a straight-line method within the benefitperiod. The respective amortization periods for such expenses are as follows:
| Item | Amortization period |
Land requisition fee
| Land requisition fee | 50 years |
| Land lease fee | 50 years |
| Greening fee | 5-20 years |
| Renovation fee | 3-5 years |
| Others | 3 years |
5.21 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date basedon internal and external sources of information to determine whether there is any indicationof impairment:
- fixed assets- construction in progress- right-of-use assets- intangible assets- productive biological asset- investment properties measured using a cost model- long-term equity investments- goodwill- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, theGroup estimates the recoverable amounts of goodwill and intangible assets with infiniteuseful lives at each year-end, irrespective of whether there is any indication of impairment.Goodwill is allocated to each asset group, or set of asset groups, that is expected to benefitfrom the synergies of the combination for the purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of itsfair value (see Note 5.21) less costs to sell and its present value of expected future cashflows.
An asset group is composed of assets directly related to cash-generation and is the smallestidentifiable group of assets that generates cash inflows that are largely independent of thecash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting thefuture cash flows, estimated to be derived from continuing use of the asset and from itsultimate disposal, to their present value using an appropriate pre-tax discount rate.
An impairment loss is recognized in profit or loss when the recoverable amount of an asset isless than its carrying amount. A provision for impairment of the asset is recognizedaccordingly. Impairment losses related to an asset group or a set of asset groups are allocatedfirst to reduce the carrying amount of any goodwill allocated to the asset group or set of assetgroups, and then to reduce the carrying amount of the other assets in the asset group or set ofasset groups on a pro rata basis. However, such allocation would not reduce the carryingamount of an asset below the highest of its fair value less costs to sell (if measurable), itspresent value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reversed in a subsequent period.
5.22 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability inan orderly transaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particularasset or liability (including the condition and location of the asset and restrictions, if any, onthe sale or use of the asset) that market participants would consider when pricing the asset orliability at the measurement date, and uses valuation techniques that are appropriate in thecircumstances and for which sufficient data and other information are available to measurefair value. Valuation techniques mainly include the market approach, the income approachand the cost approach.
5.23 Estimated liabilities
If the obligation related to contingencies is a current obligation undertaken by the Group, andthe performance of such obligation is likely to result in the outflow of economic benefitsfrom the Group, and the relevant amount can be reliably measured, the Group will recognizethe estimated liability.
The estimated liabilities are initially measured based on the best estimate of the expensesrequired to fulfill the relevant current obligations. For assets that have a significant impact onthe time value of money, the estimated liability is determined by discounting the estimatedfuture cash flows. When determining the best estimate, the Group takes into account factorssuch as risks, uncertainties, and time value of money related to contingencies. If the requiredexpenditure exists a continuous range, and the likelihood of various outcomes occurringwithin this range is the same, the best estimate is determined based on the median valuewithin this range; and in other cases, the best estimate is handled as follows:
- If the contingency involves a single item, it shall be determined based on the most likelyamount to occur.- If the contingency involves multiple items, it shall be determined based on variouspossible outcomes and related probabilities.
The Group reviews the carrying amount of estimated liabilities on the balance sheet date andadjusts the carrying amount based on the current best estimate.
5.24 Share-based payment
5.24.1 Type of share-based payment
The share-based payment of this Group is equity-settled share-based payment.
5.24.2 Accounting treatment related to implementing share-based payment plan
- Equity-settled share-based payment
When the Group exchanges shares or other equity instruments for employee services, theequity instruments granted to employees shall be measured at fair value on the grant date. Forshare-based payment transactions that are immediately exercisable upon grant, the Grouprecognizes the fair value of equity instruments as relevant costs or expenses on the grant date,and increases capital reserves accordingly. For share-based payment transactions that canonly be exercised after completing the vesting period for services or meeting the prescribedperformance conditions after the grant, the Group will make the best estimate of the numberof feasible equity instruments on each balance sheet date during the vesting period based onsubsequent information such as changes in the number of feasible employees. Based on this,the services obtained in the current period will be included in relevant costs or expensesaccording to the fair value of the equity instruments on the grant date, and correspondinglyincluded in capital reserves.
When the Group accepts services but does not have settlement obligations, and the equityinstruments granted to employees are those of the ultimate controlling party of the Companyor its controlled subsidiaries other than the Group, the Group will treat this share-basedpayment plan as a share-based payment for equity settlement.
5.25 Revenue
Revenue refers to the gross inflow of economic benefits formed during the course of theordinary activities of the Group, which may increase the shareholders’ equities and isirrelevant to the invested capital of the shareholders.
The Group recognizes the revenue upon fulfillment of its performance obligations in thecontract, that is, the client obtains control right over the relevant goods or services.
If there are two or more performance obligations under the contact, which shall be fulfilled,the Group will apportion the transaction price to various individual performance obligationsin accordance with the relative proportion of separate selling prices of various goods orservices under these performance obligations on the commencement date of the contract, andmeasure and recognize the revenue in accordance with the transaction prices apportioned tovarious individual performance obligations. The stand-alone selling price refers to the price atwhich the Group sells goods or provides services to customers separately. If the stand-aloneselling price cannot be directly observed, the Group comprehensively considers all the
relevant information that can be reasonably obtained, and uses observable input values to thegreatest extent to estimate the stand-alone selling price.
For contracts with quality assurance clauses, the Group analyzes the nature of the qualityassurance provided. If quality assurance provides a separate service in addition to ensuring tothe client that the goods sold meet the established standards, the Group will treat it as anindividual performance obligation. Otherwise, the Group conducts accounting treatment inaccordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.
The transaction price refers to the amount of consideration that the Group expects to beentitled to receive due to the transfer of goods or services to the client, excluding paymentsreceived on behalf of third parties. The transaction price recognized by the Group does notexceed the amount at which the accumulated recognized revenue will most likely not undergoa significant reversal when the relevant uncertainty is eliminated. In the event that there is asignificant financing part in the contract, the Group determines the transaction price based onthe amount payable in cash when the client obtains control right over the relevant goods orservices. The difference between the transaction price and the contract consideration shall beamortized by the effective interest method during the contract period. From the day of theenforcement of the contract, the Group expects that the interval between the client'sacquisition of control right over the goods or services and the client’s payment of the pricewill not exceed one year, regardless of the significant financing part in the contract.
If the Group meets one of the following conditions, the fulfillment of its performanceobligations in a certain period will be deemed, or the fulfillment of its performanceobligations at a certain time point will be deemed:
- The client obtains and consumes the economic benefits while the Group fulfills theperformance obligation;- The client manages to control the goods in process while the Group fulfills theperformance obligation.- Goods produced during the performance period have irreplaceable purposes and theGroup is entitled to charge money for the performance accumulated and has been finisheduntil the current time within the whole contract period.For any performance obligations fulfilled in a certain period, the Group will recognizerevenue within the certain period in accordance with the performance progress. If theperformance progress cannot be determined reasonably and costs incurred are expected to becompensated of the Group, the revenue will be ascertained according to the costs incurreduntil the performance progress is determined reasonably.
In terms of performance obligations fulfilled at a certain time point, the Group will recognizerevenue when the client gains control right over the relevant goods or services. When itcomes to determining whether a client has acquired the control right over goods or services,the Group will consider the following conditions:
- The Group has the current right to receive payment for the goods or services;- The Group has transferred the goods in kind to the client;- The Group has transferred the legal ownership of the product or the main risks andrewards of ownership to the client;
- The client has accepted the goods or services, etc.
For sales with sales return clauses, when the customer obtains control of the relevant goods,the Group recognizes revenue based on the amount of consideration expected to be entitled toreceive due to the transfer of goods to the customer (that is, does not include the expectedamount to be refunded due to sales return), and recognizes liabilities based on the expectedamount to be refunded due to sales returns. At the same time, based on the book value at thetime of transfer of the goods expected to be returned, the Group recognizes as an asset thebalance after deducting the estimated cost of recovering the goods (including the valueimpairment of the returned goods). Based on the book value of the transferred goods at thetime of transfer, the Group carries over as the cost the net amount after deducting the aboveasset cost. On each balance sheet date, the Group re-estimates the future sales returns. If thereis any change, it shall be treated as a change in accounting estimates.
The Group has transferred the goods or services to the client and thus has the right to receivecorresponding consideration (and the right is dependable on factors other than time lapses) ascontract asset, which is subject to provision of impairment on the basis of expected creditloss. The right enjoyed by the Group (only depends on time lapses) to receive considerationunconditionally from the client shall be presented under account receivables. The Grouppresents the obligation of transferring goods or services for the client due to the considerationreceived or receivable as contract liabilities.
The specific accounting policies related to the main activities of the Group’s revenue aredescribed as follows:
The Group’s sales revenue mainly comes from dealer sales. The revenue will be recognizedwhen the Group transfers control of the related products to the customer. According to thebusiness contract, for these transfers, the time when the product is confirmed and signed bythe customer shall be recognized as the confirming point of the sales revenue.
5.26 Contract cost
Contract cost includes incremental cost for being awarded the contract and performance costof the contract.
Incremental cost for being awarded the contract refers to the cost that the Group would notneed to pay if no such contracts are awarded (e.g. sales commissions, etc.) Where such cost isexpected to be recovered, the Group shall take it as the contract acquisition cost andrecognize it as an asset. Expenses incurred by the Group to be awarded contract other thanincremental cost expected to be recovered shall be recognized in current profits and losseswhen incurred.
Any cost incurred by the Group for the performance of any contract that doesn’t fall into thescope of other businesses specified in the Standard such as inventory, but meets the followingconditions simultaneously, shall be taken as contract performance cost and recognized as anasset.
- Where such cost is directly related to a current or anticipated contract, including direct
labor cost, direct material cost, manufacturing expenses (or similar expenses), costs clearlyspecified to be borne by the customer and other costs incurred solely due to the contract;- Where such cost includes resources to be used by the Group to fulfill future performanceobligations;- Where such cost is expected to be recovered.
Assets recognized for contract acquisition cost and assets recognized for contractperformance cost (hereinafter referred to as “assets related to contract cost”) shall beamortized on the same basis as the revenue recognition of goods or services related to suchassets and recognized in current profits and losses. Where the amortization period of assetsrecognized for the contract acquisition cost does not exceed one year, they shall berecognized in current profits and losses.
Where the book value of assets related to contract costs is higher than the difference betweenthe following two items, the Group shall withdraw the impairment reserves of the excess partand recognize it as the asset impairment loss:
- Residual consideration expected to be obtained arising from the transfer of goods orservices related to the assets by the Group;- Cost estimated to be occurred for the transfer of the relevant goods or services.
5.27 Employee benefits
5.27.1 Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical insurance,work injury insurance, maternity insurance and housing fund, measured at the amountincurred or accrued at the applicable benchmarks and rates, are recognized as a liability as theemployee provides services, with a corresponding charge to profit or loss or included in thecost of assets where appropriate.
5.27.2 Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the Groupparticipated in a defined contribution basic pension insurance plan in the social insurancesystem established and managed by government organizations. The Group makescontributions to basic pension insurance plans based on the applicable benchmarks and ratesstipulated by the government. Basic pension insurance contributions payable are recognizedas a liability as the employee provides services, with a corresponding charge to profit or lossor included in the cost of assets where appropriate.
5.27.3 Termination benefits
When the Group terminates the employment with employees before the employmentcontracts expire, or provides compensation under an offer to encourage employees to acceptvoluntary redundancy, a provision is recognized with a corresponding expense in profit orloss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because ofan employee termination plan or a curtailment proposal;- When the Group has a formal detailed restructuring plan involving the payment oftermination benefits and has raised a valid expectation in those affected that it will carry outthe restructuring by starting to implement that plan or announcing its main features to thoseaffected by it.
5.28 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from thegovernment to the Group except for capital contributions from the government in thecapacity as an investor in the Group.
A government grant is recognized when there is reasonable assurance that the grant will bereceived and that the Group will comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at theamount received or receivable. If a government grant is in the form of a transfer of anon-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Groupqualifying for them should purchase, construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets. Agovernment grant related to an asset is recognized as deferred income and amortized over theuseful life of the related asset on a reasonable and systematic manner as other income ornon-operating income. A grant that compensates the Company for expenses or losses to beincurred in the future is recognized as deferred income, and included in other income ornon-operating income in the periods in which the expenses or losses are recognized, orincluded in other income or non-operating income directly.
5.29 Income tax
Current tax and deferred tax are recognized in profit or loss except to the extent that theyrelate to a business combination or items recognized directly in equity (including othercomprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable incomefor the year, plus any adjustment to tax payable in respect of previous years.At the balance sheet date, current tax assets and liabilities are offset only if the Group has alegally enforceable right to set them off and also intends either to settle on a net basis or torealize the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporarydifferences respectively, being the differences between the carrying amounts of assets andliabilities for financial reporting purposes and their tax bases, which include the deductiblelosses and tax credits carried forward to subsequent periods. Deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available againstwhich deductible temporary differences can be utilized.
Deferred tax is not recognized for the temporary differences arising in a single transactionthat is not a business combination, and affects neither accounting profit nor taxable profit (ordeductible loss) at the time of the transaction, and the initially recognized assets andliabilities do not result in equal taxable temporary differences or deductible temporarydifferences. Deferred tax is not recognized for taxable temporary differences arising from theinitial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences that wouldfollow from the expected manner of recovery or settlement of the carrying amounts of theassets and liabilities, using tax rates enacted at the balance sheet date that are expected to beapplied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and isreduced to the extent that it is no longer probable that the related tax benefits will be utilized.Such reduction is reversed to the extent that it becomes probable that sufficient taxableprofits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of thefollowing conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and currenttax assets;- they relate to income taxes levied by the same tax authority on either: the same taxableentity; or different taxable entities which intend either to settle the current tax liabilities andcurrent tax assets on a net basis, or to realize the assets and settle the liabilitiessimultaneously, in each future period in which significant amounts of deferred tax liabilitiesor deferred tax assets are expected to be settled or recovered.
5.30 Lease
Lease refers to a contract in which it is agreed that the lessor conveys the use right of anyasset to the lessee for a period of time in exchange for consideration.
On the contract start date, the Group shall evaluate whether the contract is, or contains, alease. Where either party thereto conveys the right to control the use of one or moreidentified assets for a period of time in exchange for consideration, the contract is, orcontains a lease.
To determine whether the contract conveys the right to control the use of identified assets fora period of time, the Group conducts the following assessments:
- Whether the contract involves the use of an identified asset. An identified asset can beeither explicitly specified in a contract, or implicitly when the asset is available to the
customer and can be a physically distinct portion, or if some capacity or other portion of theasset is not physically distinct but substantially represents the full capacity of the asset, sothat the customer obtains substantially all of the economic benefits from the use of the asset.If the supplier of the asset has the practical ability to substitute the asset throughout theperiod of use, the asset is not an identified asset;- Whether the lessee has the right to obtain substantially all of the economic benefits fromthe use of the identified asset throughout the period of use; and- Whether the lessee has the right to direct the use of an identified asset throughout thisperiod of use.
If the contract contains multiple separate leases at the same time, the lessee and lessor willsplit the contract and have each separate lease separately subject to accounting treatment. Ifthe contract includes lease and non-lease parts at the same time, the lessee and the lessor willsplit them separately. When splitting the lease and non-lease parts included in the contract,the lessee shall allocate the contract consideration according to the relative proportion of thesum of the stand-alone price of each lease part and the stand-alone price of each non-leasepart. The lessor shall allocate the contract consideration in accordance with the provisions ontransaction price allocation in the accounting policy stated in Note 5.22.
5.30.1 Where the Group is the lessee
Upon the commencement of the lease term, the Group recognizes right-of-use assets andlease liabilities for leases. The right-of-use assets are initially measured at cost, includinginitially measured amount of leased liability; amount of lease payments made on or beforethe commencement date of the lease term (the related amount of lease incentive having beenenjoyed shall be deducted); initial direct costs incurred and costs that the Group expects toincur to disassemble and remove leased assets, restore the site where leased assets are locatedor restore leased assets to the agreed condition under the terms of the lease.
The Group employs the straight-line method to depreciate right-of-use assets. Where it can bereasonably recognized that the ownership of leased assets will be obtained by the Group uponexpiration of the lease term, leased assets will be depreciated during the service life;otherwise, leased assets will be depreciated during the lease term or the remaining service lifeof such leased assets by the Group, whichever is shorter. Right-of-use assets shall beprovided for impairment in accordance with the accounting policies stated in Note 5.21.
When initially calculating the present value of the unpaid lease payment at thecommencement date of the lease term, the Group shall employ the interest rate implicit in thelease as the discount rate; where the interest rate implicit in the lease cannot be determined,the incremental lending rate of the Group shall be used as the discount rate.
The Group calculates the interest expense of lease liabilities in each period of the lease termaccording to a fixed periodic rate, which will be included in current profits and losses or assetcost. The variable lease payment not included in the measurement of lease liabilities shall berecognized in current profits and losses and loss or related asset cost when they actuallyoccur.
In case of any of following circumstances after the commencement date of the lease term, theGroup will re-measure lease liabilities at the present value of the lease payment after anychange:
- Where the amount payable anticipated changes according to the guaranteed residualvalue;- Where the index or ratio used for recognizing the lease payment changes;- Where there is a change in the Group's assessment results of the option of purchase,renewal option or option of termination of lease or the actual exercising of the termination ofthe renewal option or option of termination of lease is inconsistent with the originalassessment result.
When the Group re-measures lease liabilities, the book value of right-of-use assets shall beadjusted accordingly. Where the book value of right-of-use assets has been reduced to zero,but lease liabilities still need to be subject to further reduction, the remaining amount shall berecognized in current profits and losses.
The Group does not recognize right-of-use assets and leased liabilities for short-term lease(lease with a lease term within 12 months) and lease of low-value assets. The Group shallinclude related lease payment into the current profits and losses or relevant asset costsaccording to the straight-line method in each period of the lease term.
5.30.2 The Group as the lessor
From the inception of lease, the Group will divide leases into finance lease and operatinglease. Finance lease refers to a lease in which almost all the risks and returns related to theownership of the leased asset are essentially transferred, regardless of whether the ownershipis finally transferred or not. Operating lease refers to other leases except for the finance lease.
When the Group is the sublease lessor, the sublease shall be classified based on theright-of-use assets arising from the original lease rather than the underlying assets of theoriginal lease. If the original lease is a short-term lease and the Group elects to apply theabove-mentioned simplified treatment of short-term lease to the original lease, the Groupshall classify the sublease as an operating lease.
For finance leases, from the commencement date of the lease term, the Group recognizesfinance lease receivables for finance leases and derecognizes the finance lease assets. TheGroup regards the net investment in a lease as the entry value of finance lease receivables atthe time of initial measurement of finance lease receivables. The net investment in a lease isthe sum of the present value of unguaranteed residual value and rental receipts not receivedyet on the commencement date of the lease term which is subject to discounting at theinterest rate implicit in the lease term.
The Group calculates and recognizes the interest income in each period within the lease termaccording to a fixed periodic rate. Derecognition and impairment of finance lease receivablesshall be subject to accounting treatment in accordance with the accounting policies stated inNote 5.10. The variable lease payment which is not included in the net investment in a leaseshall be recognized in current profits and losses when it actually occurs.
During each period of the lease term, the Group recognizes lease receipts from operatingleases as rental revenue by using the straight-line method. The Group capitalizes initial directcosts pertaining to operating leases upon their occurrence, and apportions them as per the
same basis used for recognizing the rental income within the lease term and includes them incurrent profits and losses by period. The variable lease receipts related to operating leasesthat are not included in the lease receipts shall be recognized in current profits and losseswhen they actually occur. The variable lease payment which is not included in the leasereceipts shall be recognized in current profits and losses when it actually occurs.
5.31 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the carryingamount of a non-current asset or disposal group will be recovered through a sale transactionrather than through continuing use.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, togetheras a whole in a single transaction and liabilities directly associated with those assets that willbe transferred in the transaction.
A non-current asset or disposal group is classified as held for sale when all the followingcriteria are met:
- According to the customary practices of selling such asset or disposal group insimilar transactions, the non-current asset or disposal group must be available for immediatesale in their present condition subject to terms that are usual and customary for sales of suchassets or disposal groups;- Its sale is highly probable, that is, the Group has made a resolution on a sale plan andhas obtained a firm purchase commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carrying amountand fair value less costs to sell (except financial assets, deferred tax assets and investmentproperties subsequent measured at fair value initially and subsequently. Any excess of thecarrying amount over the fair value less costs to sell is recognized as an impairment loss inprofit or loss.
5.32 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will beapproved after the balance sheet date, are not recognized as a liability at the balance sheetdate but are disclosed in the notes separately.
5.33 Related parties
If a party has the power to control, jointly control or exercise significant influence overanother party, or vice versa, or where two or more parties are subject to common control orjoint control from another party, they are considered to be related parties. Related parties maybe individuals or enterprises. Enterprises with which the Company is under common controlonly from the State and that have no other related party relationships are not regarded asrelated parties.
In addition to the related parties stated above, the Group determines related parties based onthe disclosure requirements of Administrative Procedures on the Information Disclosures ofListed Companies issued by the CSRC.
5.34 Segment reporting
The Group is principally engaged in the production and sales of wine, brandy, and sparklingwine in China, France, Spain, Chile and Australia. In accordance with the Group’s internalorganization structure, management requirements and internal reporting system, the Group’soperation is divided into four parts: China, Spain, France, Chile and Australia. Themanagement periodically evaluates segment results, in order to allocate resources andevaluate performances. In 2024, over 84% of revenue, more than 90% of profit and over 91%of non-current assets derived from China / are located in China. Therefore the Group does notneed to disclose additional segment report information.
5.35 Significant accounting estimates and judgments
The preparation of the financial statements requires management to make estimates andassumptions that affect the application of accounting policies and the reported amounts ofassets, liabilities, income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on anongoing basis. Revisions to accounting estimates are recognized in the period in which theestimate is revised and in any future periods affected.
For significant accounting estimates of this Company, see Notes 5.3, 7, 11 and 16.
5.36 Changes in significant accounting policies and accounting estimates
5.36.1 Changes in significant accounting policies
Nil
5.36.2 Changes in significant accounting estimates
Nil
6. Taxes
6.1 Main taxes and tax rates
| Tax category | Taxation basis | Tax rates |
| Value added tax | Levied on the balance between the output tax calculated based on taxable income and the input tax allowed to be deducted in current period. | 13%, 9%, 6% (China), 20% (France), 21% (Spain), 19% (Chile), 10% (Australia) |
| Consumption tax | Levied on taxable income. | 10% of the price, 20% of the price and 1,000 yuan each ton (China) |
| City development tax | Levied on circulation tax actually paid. | 7% (China) |
Corporate incometax
| Corporate income tax | Levied on taxable income. | 25% (China), 25% (France), 28% (Spain), 27% (Chile), 30% (Australia) |
6.2 Tax incentives
Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”), a subsidiary of the Group,engaged in grape growing, is incorporated in Yongning County, Ningxia Huizu AutonomousRegion. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRCCorporate Income Tax Measures for Implementation, Ningxia Growing enjoys thepreferential policy of an exemption of corporate income tax from grape cultivation income.
Yantai Changyu Grape Growing Co., Ltd. (“Grape Growing”), a branch of the Company,engaged in grape growing, is incorporated in Zhifu District, Yantai City, Shandong Province.According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC CorporateIncome Tax Measures for Implementation, Grape Growing enjoys the preferential policy ofan exemption of corporate income tax from grape cultivation income.
Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co., Ltd. (“R&Dand Growing”), a branch of the Company, engaged in grape growing, is incorporated inYEDA, Shandong Province. According to Clause 27 of PRC Corporate Income Tax andClause 86 of PRC Corporate Income Tax Measures for Implementation, R&D and Growingenjoys the preferential policy of an exemption of corporate income tax from grape cultivationincome.
Beijing Changyu AFIP Agriculture Development Co., Ltd. (“Agriculture Development”), asubsidiary of the Group, engaged in grape growing, is incorporated in Miyun County, Beijing.According to clause 27 of the Corporate Income Tax Law of the People’s Republic of Chinaand clause 86 of the Implementation Rules of Enterprise Income Tax Law of the People’sRepublic of China, Agriculture Development enjoys the preferential policy of an exemptionof corporate income tax from grape cultivation income.
Xinjiang Babao Baron Chateau Co., Ltd. (“Shihezi Chateau”), a subsidiary of the Company,is an enterprise of wine production incorporated in Shihezi City, Xinjiang UygurAutonomous Region. In accordance with Announcement on Continuing the EnterpriseIncome Tax Policies for the Large-Scale Development of Western China of the Ministry ofFinance, the State Taxation Administration and the National Development and ReformCommission (Announcement No. 23 [2020] of the Ministry of Finance), Shihezi Chateau isqualified to enjoy preferential taxation policies, which means it can pay corporate income taxat a preferential rate of 15% for the period from 2021 to 2030.
Ningxia Chateau Changyu Longyu Co., Ltd. (referred to as “Ningxia Chateau”), a subsidiaryof the Company, is an enterprise of wine production incorporated in Yinchuan City, NingxiaHuizu Autonomous Region. In accordance with Announcement on Continuing the EnterpriseIncome Tax Policies for the Large-Scale Development of Western China of the Ministry ofFinance, the State Taxation Administration and the National Development and ReformCommission (Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Chateau isqualified to enjoy preferential taxation policies, which means it can pay corporate income taxat a preferential rate of 15% for the period from 2021 to 2030.
Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”), a subsidiary of the Company, is anenterprise of raw wine production incorporated in Yinchuan City, Ningxia HuizuAutonomous Region. In accordance with Announcement on Continuing the EnterpriseIncome Tax Policies for the Large-Scale Development of Western China of the Ministry ofFinance, the State Taxation Administration and the National Development and ReformCommission (Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Wine isqualified to enjoy preferential taxation policies, which means it can pay corporate income taxat a preferential rate of 15% for the period from 2021 to 2030.
According to the provisions of the Announcement of the Ministry of Finance and the StateTaxation Administration on Further Implementing the Preferential Income Tax Policies forMicro and Small Enterprises (Announcement No. 13 of [2022] of the Ministry of Financeand the State Taxation Administration), the annual taxable income of a small low-profitenterprise that is not less than 1 Million Yuan and not more than 3 Million yuan shall beincluded in its taxable income at the reduced rate of 25%, with the applicable enterpriseincome tax rate of 20%. Beijing Changyu Wine Industry Marketing Co., Ltd. (“BeijingAllotting”), a subsidiary of the Group, has been identified as eligible small low-profitenterprise.
According to the provisions of the Announcement of the Ministry of Finance and the StateTaxation Administration on Exempting Small-Scale Value-Added Tax Taxpayers fromValue-Added Tax (Announcement No. 19 of [2023] of the Ministry of Finance and the StateTaxation Administration) on August 1, 2023, small-scale VAT taxpayers with monthly salesbelow 100,000 yuan (including this amount) are exempt from value-added tax, small-scaleVAT taxpayers subject to a levy rate of 3% on taxable sales income will enjoy a reduced VATrate of 1%; and prepaid VAT items that are subject to a 3% pre-levy rate will enjoy a reducedVAT prepayment rate of 1%. The announcement shall be executed until December 31, 2027,and Xinjiang Changyu Sales Co., Ltd. Weimeisi Tasting Center Branch enjoys this exemptionpolicy.
According to the provisions of the Announcement of the Ministry of Finance and the StateTaxation Administration on Further Strengthening the Implementation of the PoliciesRegarding the Refund of Term-End Excess Input Value-Added Tax Credits (AnnouncementNo. 14 of [2022] of the Ministry of Finance and the State Taxation Administration), it willfurther strengthen the implementation of the refund of term-end excess input value-added taxcredits and expand the industry scope of the policy of fully refunding the excess inputvalue-added tax credits. This Company and eligible subsidiaries have enjoyed the refund ofterm-end excess input value-added tax credits.
According to the Announcement of the Ministry of Finance and the State TaxationAdministration on Further Implementing the “Six Taxes and Two Fees” Reduction andExemption Policies for Micro and Small Enterprises (Announcement No. 10 of [2022]), asdetermined by the people’s government of a province, autonomous region, or municipalitydirectly under the Central Government in light of the actual circumstances of the local region,from January 1, 2022 to December 31, 2024, a small-scale VAT taxpayer, a small low-profitenterprise or an individual industrial and commercial household may be pay resource tax,urban maintenance and construction tax, property tax, urban land use tax, stamp tax(excluding securities trading stamp tax), farmland occupation tax, educational surtax, or localeducation surcharges at the reduced tax rate of 50% or less. Shandong, Xinjiang, Ningxia,
Shaanxi and other provinces (autonomous regions and municipalities) have reduced the “sixtaxes and two fees” by 50%, and some of the Company’s subsidiaries are eligible for thereduction.
7. Notes to items in the consolidated financial statement
7.1 Monetary capital
Unit: yuan
| Item | Ending balance | Beginning balance |
| Cash on hand | 28,867 | 74,951 |
| Bank deposit | 1,603,134,009 | 2,217,280,801 |
| Other monetary capital | 56,521,864 | 337,895 |
| Total | 1,659,684,740 | 2,217,693,647 |
| Including: Total overseas deposits | 32,640,469 | 24,317,469 |
As at June 30, 2024, the bank deposits of the Group including short-term fixed deposits rangingfrom 3 months to 12 months and interests amounted to RMB 87,200,000 yuan, with the interestrates ranging from 1.75% to 2.25% (December 31, 2023: RMB 254,200,000 yuan).
As at June 30, 2024, the details of other monetary funds are listed as follows:
Unit: yuan
| Item | Ending balance | Beginning balance |
| Deposit investment funds for stock repurchase | 49,050,278 | |
| Guaranteed deposits paid for the letter of credit | 6,500,000 | |
| Account balance of Alipay | 830,078 | 192,997 |
| Guaranty money for ICBC platform | 10,000 | 10,000 |
| Guaranty money for customs | 131,508 | 134,898 |
| Total | 56,521,864 | 337,895 |
As of June 30, 2024, the Group does not have any special interest arrangements such asestablishing joint fund management accounts with related parties.
7.2 Bills receivable
Classification of bills receivable
| Item | Ending balance | Beginning balance |
| Bank acceptance bills | 440,667 | 1,260,000 |
| Total | 440,667 | 1,260,000 |
The above bills receivable are all due within one year.
7.3 Accounts receivable
7.3.1 Disclosed by age:
Unit: yuan
| Age | Ending book balance | Beginning book balance |
| Within 1 year (including 1 year) | 174,171,825 | 387,161,172 |
| 1-2 years | 588,650 | 2,367,283 |
| 2-3 years | 6,499,530 | 5,396,673 |
| Over 3 years | 365,654 | |
| Total | 181,260,005 | 395,290,782 |
As at June 30, 2024, the accounts receivable with ownership restrictions were RMB 56,793,558yuan (December 31, 2023: 73,628,265 yuan). Please refer to Note 7.20 for details.
7.3.2 Accounts receivable are analyzed by customer category as follows:
| Name | Ending balance | ||
| Book balance | Provision for bad debts | Accrued proportion | |
| Receivable from related parties | 4,372,960 | 4,180 | 0.96% |
| Other customers | 176,887,045 | 9,070,906 | 5.13% |
| Total | 181,260,005 | 9,075,086 | -- |
7.3.3 Disclosed by provision for bad debts:
Unit: yuan
| Type | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
| Accounts receivable for which provision for bad debts is accrued on a single item basis | ||||||||||
| Accounts receivable for which provision for bad debts is accrued on a combined basis | 181,260,005 | 100% | 9,075,086 | 5.01% | 172,184,919 | 395,290,782 | 100% | 13,158,448 | 3.30% | 382,132,334 |
| Total | 181,260,005 | 100% | 9,075,086 | 5.01% | 172,184,919 | 395,290,782 | 100% | 13,158,448 | 3.30% | 382,132,334 |
7.3.4 Provision for bad debts accrued, withdrawn or transferred back in this periodProvision for bad debts accrued in this period:
Unit: yuan
| Type | Beginning balance | Changes in this period | Ending balance | |||
| Accrued | Withdrawn or transferred back | Cancelled | Others | |||
| Provision for bad debts is accrued on a combined basis | 13,158,448 | -4,083,362 | 9,075,086 | |||
| Total | 13,158,448 | -4,083,362 | 9,075,086 | |||
7.3.5 Accounts receivable actually cancelled after verification in this periodNil
7.3.6 Accounts receivable and contract assets situation collected by borrowers of top 5 unitsranked by ending balance
Unit: yuan
| Unit name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Percentage in total ending balance of accounts receivable and contract assets | Ending balance of bad debts provision and provision for impairment of contract assets |
| Customer 1 | 25,215,862 | 25,215,862 | 13.9% | 24,105 | |
| Customer 2 | 10,028,632 | 10,028,632 | 5.5% | 167,407 | |
| Customer 3 | 6,160,864 | 6,160,864 | 3.4% | 102,843 | |
| Customer 4 | 5,454,585 | 5,454,585 | 3.0% | 91,053 | |
| Customer 5 | 4,158,078 | 4,158,078 | 2.3% | 69,410 | |
| Total | 51,018,021 | 51,018,021 | 28.10% | 454,818 |
7.3.7 Accounts receivable terminating recognition due to transfer of financial assetsNil
7.3.8 Accounts receivable transferred and included in assets and liabilitiesNil
7.4 Receivables financing
Unit: yuan
| Item | Ending balance | Beginning balance |
| Bills receivable | 212,135,108 | 408,316,028 |
| Total | 212,135,108 | 408,316,028 |
7.4.1 Pledged bills receivable of the Group at the end of the year
Nil
7.4.2 Outstanding endorsed bills that have not matured at the end of the year
| Type | Amount derecognized at end of period |
| Bank acceptance bills | 73,067,006 |
| Total | 73,067,006 |
As at June 30, 2024, bills endorsed by the Group to other parties which are not yet due is RMB73,067,006 yuan (December 31, 2023: RMB 394,923,505 yuan). The notes are used for paymentto suppliers and constructions. The Group believes that due to good reputation of bank, the risk ofnotes not accepting by bank on maturity is very low, therefore derecognize the note receivablesendorsed. If the bank is unable to pay the notes on maturity, according to the relevant laws andregulations of China, the Group would undertake limited liability for the notes.
7.5 Advance payment
7.5.1 Advance payment listed by age
Unit: yuan
| Age | Ending balance | Beginning sum | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 45,688,203 | 99.93% | 61,468,643 | 99.95% |
| 1-2 years | 29,914 | 0.07% | 29,290 | 0.05% |
| 2-3 years | ||||
| More than 3 years | ||||
| Total | 45,718,117 | -- | 61,497,933 | -- |
7.5.2 Advance payment collected by prepaid parties of top 5 units ranked by ending balance
Unit: yuan
| Client type | Relationship with the Group | Amount | Age | Reason for unsettlement | Percentage in the total advance payment % |
| Unit 1 | Third party | 26,048,133 | Within 1 year | Prepaid payment for goods | 57.0% |
| Unit 2 | Third party | 5,389,825 | Within 1 year | Prepaid payment for goods | 11.8% |
| Unit 3 | Third party | 2,145,679 | Within 1 year | Prepaid service charge | 4.7% |
| Unit 4 | Third party | 1,232,078 | Within 1 year | Prepaid service charge | 2.7% |
| Unit 5 | Third party | 500,000 | Within 1 year | Prepaid service charge | 1.1% |
| Total | -- | 35,315,715 | -- | 77.30% |
7.6 Other receivables
Unit: yuan
| Item | Ending balance | Beginning balance |
| Interests receivable | ||
| Dividends receivable |
Other receivables
| Other receivables | 76,437,050 | 71,496,276 |
| Total | 76,437,050 | 71,496,276 |
Other receivables
7.6.1 Other receivables classified by nature
Unit: yuan
| Nature | Ending book balance | Beginning book balance |
| Land acquisition and storage receivable | 37,768,902 | 37,768,902 |
| Consumption tax and added-value tax export rebate | 20,599,820 | 19,104,008 |
| Deposit and guaranty money receivable | 6,627,431 | 5,429,202 |
| Imprest receivable | 266,112 | 154,354 |
| Others | 11,174,785 | 9,039,810 |
| Total | 76,437,050 | 71,496,276 |
7.6.2 Other receivables classified by nature
Unit: yuan
| Age | Ending balance | Beginning balance |
| Within 1 year (including 1 year) | 31,878,163 | 29,551,266 |
| 1-2 years | 41,905,368 | 39,753,227 |
| 2-3 years | 334,355 | 160,000 |
| More than 3 years | 2,319,164 | 2,031,783 |
| Total | 76,437,050 | 71,496,276 |
7.6.3 Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 yuan; and that withdrawn ortransferred back in this period was RMB 0 yuan.
7.6.4 Other receivables actually cancelled after verification in this period
Nil
7.6.5 Other receivables collected by borrowers of top 5 units ranked by ending balance
Unit: yuan
| Unit Name | Nature | Ending balance | Age | Percentage in total ending balance of other accounts receivable | Ending balance of provision for bad debts |
| Unit 1 | Land acquisition and reserve funds | 37,768,902 | 1-2 years | 49.41% |
Unit 2
| Unit 2 | Value-added tax and consumption tax export rebate | 19,390,305 | Within 1 year | 25.37% | |
| Unit 3 | Housing maintenance fund | 2,670,094 | Within 1 year | 3.49% | |
| Unit 4 | Value-added tax export rebate | 736,946 | Within 1 year | 0.96% | |
| Unit 5 | Guaranty money | 572,880 | 1-2 years | 0.75% | |
| Total | -- | 61,139,127 | 79.98% |
7.6.6 Accounts receivable involving government subsidies
Nil
7.6.7 Other receivables that are terminated for recognition due to transfer of financial assets
Nil
7.6.8 Other receivables transferred and then included in assets and liabilitiesNil
7.7 Inventories
7.7.1 Inventory classification
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Depreciation provision | Book value | Book balance | Depreciation provision | Book value | |
| Raw materials | 78,086,555 | 78,086,555 | 241,961,713 | 241,961,713 | ||
| Goods in process | 2,164,760,433 | 2,164,760,433 | 1,915,860,327 | 1,915,860,327 | ||
| Commodity stocks | 661,887,880 | 18,532,217 | 643,355,663 | 625,076,081 | 17,507,534 | 607,568,547 |
| Total | 2,904,734,868 | 18,532,217 | 2,886,202,651 | 2,782,898,121 | 17,507,534 | 2,765,390,587 |
7.7.2 Inventory depreciation provision
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
| Accrual | Others | Transfer back or write-off | Others | |||
| Raw materials | ||||||
| Goods in process | ||||||
| Commodity stocks | 17,507,534 | 18,532,217 | 17,507,534 | 18,532,217 | ||
| Total | 17,507,534 | 18,532,217 | 17,507,534 | 18,532,217 | ||
7.8 Other current assets
Unit: yuan
Item
| Item | Ending balance | Beginning balance |
| Accounts receivable return cost | 16,876,869 | |
| Prepaid corporate income tax | 17,386,402 | 4,438,001 |
| Deductible input tax | 53,826,234 | 65,228,189 |
| Expense to be amortized | 1,699,779 | 1,825,483 |
| Total | 72,912,415 | 88,368,542 |
7.9 Long-term equity investments
Unit: yuan
| Investee | Beginning balance (book value) | Beginning balance of provision for impairment | Movements during the period | Ending balance (book value) | Ending balance of provision for impairment | |||||||
| Increase in capital | Decrease in capita | Investment gains and losses recognized under the equity method | Other comprehensive income adjustment | Other equity changing | Declare cash dividend or profit | Accrual provision for impairment | Others | |||||
| 1. Joint ventures | ||||||||||||
| SAS L&M Holdings (“L&M Holdings”) | 37,018,893 | -1,874,370 | 35,144,523 | |||||||||
| Subtotal | 37,018,893 | -1,874,370 | 35,144,523 | |||||||||
| 2. Associates | ||||||||||||
| Shanghai Yufeng Brand Management Co., Ltd. (“Shanghai Yufeng”) (Note) | 365,362 | 23,802 | 389,164 | |||||||||
| Yantai Guolong Wine Industry Co., Ltd. (“Yantai Guolong”) (Note) | 901,365 | -81,524 | 819,841 | |||||||||
| Subtotal | 1,266,727 | -57,722 | 1,209,005 | |||||||||
| Total | 38,285,620 | -1,932,092 | 36,353,528 | |||||||||
Note: The Group has appointed one director to each of these investees.
7.10 Investment real estate
7.10.1 Investment real estate by cost measurement method
Unit: yuan
| Item | Houses and buildings | Land use right | Construction in progress | Total |
| I Original book value |
Item
| Item | Houses and buildings | Land use right | Construction in progress | Total |
| 1. Beginning balance | 81,165,619 | 81,165,619 | ||
| 2. Increase in this period | ||||
| 2.1 Outsourcing | ||||
| 2.2 Transfer in from inventories\fixed assets\ construction in progress | ||||
| 2.3 Business merger increase | ||||
| 3. Decrease in this period | ||||
| 3.1 Disposal | ||||
| 3.2 Other transfer out | ||||
| 4. Ending balance | 81,165,619 | 81,165,619 | ||
| II. Accumulated depreciation & accumulated amortization | ||||
| 1. Beginning balance | 56,682,788 | 56,682,788 | ||
| 2. Increase in this period | 1,245,831 | 1,245,831 | ||
| 2.1 Accrual or amortization | 1,245,831 | 1,245,831 | ||
| 3. Decrease in this period | ||||
| 3.1 Disposal | ||||
| 3.2 Other transfer out | ||||
| 4. Ending balance | 57,928,619 | 57,928,619 | ||
| III. Impairment provision | ||||
| 1. Beginning balance | ||||
| 2. Increase in this period | ||||
| 2.1 Accrual | ||||
| 3. Decrease in this period | ||||
| 3.1 Disposal | ||||
| 3.2 Other transfer out | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 23,237,000 | 23,237,000 | ||
| 2. Beginning book value | 24,482,831 | 24,482,831 |
7.11 Fixed assets
Unit: yuan
| Item | Ending balance | Beginning balance |
| Fixed assets | 5,687,285,125 | 5,795,082,569 |
| Disposal of fixed assets |
Item
| Item | Ending balance | Beginning balance |
| Total | 5,687,285,125 | 5,795,082,569 |
7.11.1 Particulars of fixed assets
Unit: yuan
| Item | Houses and buildings | Machinery equipment | Transportation equipment | Total |
| I. Original book value: | ||||
| 1. Beginning balance | 5,882,104,759 | 2,811,522,051 | 24,268,214 | 8,717,895,024 |
| 2. Increase in this period | 5,859,902 | 37,507,199 | 1,663,156 | 45,030,257 |
| 2.1 Acquisition | 5,859,902 | 36,852,644 | 1,663,156 | 44,375,702 |
| 2.2 Transfer in from construction in progress | 654,555 | 654,555 | ||
| 2.3 Business merger increase | ||||
| 3. Decrease in this period | 5,582,660 | 530,858 | 6,113,518 | |
| 3.1 Disposal or retirement | 5,582,660 | 530,858 | 6,113,518 | |
| 3.2 Others | ||||
| 4. Ending balance | 5,887,964,661 | 2,843,446,590 | 25,400,512 | 8,756,811,763 |
| II. Accumulated depreciation | ||||
| 1. Beginning balance | 1,312,265,801 | 1,577,413,953 | 22,769,318 | 2,912,449,072 |
| 2. Increase in this period | 77,980,703 | 73,637,264 | 715,559 | 152,333,526 |
| 2.1 Accrual | 77,980,703 | 73,637,264 | 715,559 | 152,333,526 |
| 3. Decrease in this period | 5,297,683 | 321,660 | 5,619,343 | |
| 3.1 Disposal or retirement | 5,297,683 | 321,660 | 5,619,343 | |
| 3.2 Others | ||||
| 4. Ending balance | 1,390,246,504 | 1,645,753,534 | 23,163,217 | 3,059,163,255 |
| III. Impairment provision | ||||
| 1. Beginning balance | 10,363,383 | 10,363,383 | ||
| 2. Increase in this period | ||||
| 2.1 Accrual | ||||
| 3. Decrease in this period | ||||
| 3.1 Disposal or retirement | ||||
| 3.2 Others | ||||
| 4. Ending balance | 10,363,383 | 10,363,383 | ||
| IV. Book value | ||||
| 1. Ending book value | 4,497,718,157 | 1,187,329,673 | 2,237,295 | 5,687,285,125 |
| 2. Beginning book value | 4,569,838,958 | 1,223,744,715 | 1,498,896 | 5,795,082,569 |
As at June 30, 2024, the net value of the fixed assets with ownership restrictions was RMB33,600,396 yuan (December 31, 2023: RMB 37,985,117 yuan). Please refer to Note 7.20 fordetails.
7.11.2 Particulars of temporarily idle fixed assets
Unit: yuan
| Item | Original book value | Accumulated depreciation | Depreciation reserves | Book value | Remarks |
| Machinery equipment | 29,423,698 | 19,060,315 | 10,363,383 | ||
| Total | 29,423,698 | 19,060,315 | 10,363,383 |
7.11.3 Particulars of fixed assets under finance leases
Nil
7.11.4 Fixed assets under operating lease
Unit: yuan
| Item | Ending book value |
| Buildings | 88,875,383 |
| Machinery equipment | 931 |
7.11.5 Particulars of fixed assets without property certificates
Unit: yuan
| Item | Book value | Reason for not receiving the property certificate |
| Dormitory building, main building and reception building of Chang’an Chateau | 256,853,439 | Under transaction |
| European town, main building and service building of Chateau AFIP | 155,905,448 | Under transaction |
| Wine-making workshop of Changyu (Jingyang) | 4,094,630 | Under transaction |
| Office building, laboratory building and workshop of Fermentation Center | 4,107,265 | Under transaction |
| Finished goods warehouse and workshop of Kylin Packaging | 1,898,121 | Under transaction |
| Others | 849,213 | Under transaction |
| Total | 423,708,116 |
7.12 Construction in progress
Unit: yuan
| Item | Ending balance | Beginning balance |
| Construction in progress | 10,097,466 | 3,323,241 |
| Engineering materials |
Total
| Total | 10,097,466 | 3,323,241 |
7.12.1 Particulars of construction in progress
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Museum project of Ningxia Chateau | 1,376,147 | 1,376,147 | 1,376,147 | 1,376,147 | ||
| Construction project of Shihezi Chateau | 700,000 | 700,000 | 700,000 | 700,000 | ||
| Ningxia brewing and fermentation workshop | 4,307,599 | 4,307,599 | 200,652 | 200,652 | ||
| Projects of other companies | 3,713,720 | 3,713,720 | 1,046,442 | 1,046,442 | ||
| Total | 10,097,466 | 10,097,466 | 3,323,241 | 3,323,241 | ||
7.12.2 Changes of major construction in progress in this period
Unit: yuan
| Project name | Budget | Beginning balance | Increase in this period | Transferred to fixed assets in this period | Transferred to long-term unamortized expenses in this period | Ending balance | Proportion of accumulative project input in budget | Accumulative capitalized amount of interest | Including: capitalized amount of interest in this period | Capitalization ratio of interest in this period | Capital source |
| Construction project of Shihezi Chateau | 780,000,000 | 700,000 | 700,000 | 98% | Self-raised funds | ||||||
| Ningxia brewing and fermentation workshop | 6,900,000 | 200,652 | 4,106,947 | 4,307,599 | 62.43% | Self-raised funds |
As at June 30, 2024, there was no indication for impairment of construction in progress of the Group, so no provision for impairment was made.
7.13 Productive biological assets
7.13.1 Productive biological assets by cost measurement method
Unit: yuan
| Total | Plantation | Total | |
| Immature | Mature | ||
| Ⅰ Original book value | |||
| 1. Beginning balance | 32,791,446 | 248,838,320 | 281,629,766 |
| 2. Increase in this period | -8,621,524 | 10,035,518 | 1,413,994 |
| 2.1 Outsourcing | |||
| 2.2 Self cultivation | 1,413,994 | 1,413,994 | |
| The immature turn to the mature | -10,035,518 | 10,035,518 | |
| 3. Decrease in this period | |||
| 3.1 Disposal | |||
| 3.2 Others | |||
| 4. Ending balance | 24,169,922 | 258,873,838 | 283,043,760 |
| Ⅱ Accumulated depreciation | |||
| 1. Beginning balance | 104,167,783 | 104,167,783 | |
| 2. Increase in this period | 8,623,430 | 8,623,430 | |
| 2.1 Accrual | 8,623,430 | 8,623,430 | |
| 3. Decrease in this period | |||
| 3.1 Disposal | |||
| 3.2 Other | |||
| 4. Ending balance | 112,791,213 | 112,791,213 | |
| Ⅲ Impairment provision | |||
| 1. Beginning balance | |||
| 2. Increase in this period | |||
| 2.1 Accrual | |||
| 3. Decrease in this period | |||
| 3.1 Disposal | |||
| 3.2 Others | |||
| 4. Ending balance | |||
| Ⅳ Book value | |||
| 1. Ending book value | 24,169,922 | 146,082,625 | 170,252,547 |
| 2. Beginning book value | 32,791,446 | 144,670,537 | 177,461,983 |
As at June 30, 2024, no ownership of the biological assets was restricted.As at June 30, 2024, there was no indication for impairment of biological assets of the Group, so noprovision was made.
7.14 Right-of-use assets
Unit: yuan
| Item | Building | Land | Others | Total |
| Ⅰ Original book value: | ||||
| 1. Beginning balance | 80,425,384 | 137,980,409 | 1,697,986 | 220,103,779 |
| 2. Increase in this period | 2,020,302 | 2,020,302 | ||
| 3. Decrease in this period | 2,457,813 | 2,457,813 | ||
| 4. Ending balance | 79,987,873 | 137,980,409 | 1,697,986 | 219,666,268 |
| Ⅱ Accumulated amortization | ||||
| 1. Beginning balance | 41,596,011 | 55,403,469 | 1,358,389 | 98,357,869 |
| 2. Increase in this period | 7,955,532 | 2,898,345 | 169,799 | 11,023,676 |
| 2.1 Accrual | 7,955,532 | 2,898,345 | 169,799 | 11,023,676 |
| 3. Decrease in this period | 2,457,813 | 2,457,813 | ||
| 4. Ending balance | 47,093,730 | 58,301,814 | 1,528,188 | 106,923,732 |
| Ⅲ Impairment provision | ||||
| 1. Beginning balance | ||||
| 2. Increase in this period | ||||
| 2.1 Accrual | ||||
| 3. Decrease in this period | ||||
| 3.1 Disposal | ||||
| 4. Ending balance | ||||
| Ⅳ Book value | ||||
| 1. Ending book value | 32,894,143 | 79,678,595 | 169,798 | 112,742,536 |
| 2. Beginning book value | 38,829,373 | 82,576,940 | 339,597 | 121,745,910 |
7.15 Intangible assets
7.15.1 Particulars of intangible assets
Unit: yuan
| Item | Land use right | Software use right | Trademark | Total |
| Ⅰ Original book value | ||||
| 1. Beginning balance | 444,520,847 | 102,888,216 | 189,715,738 | 737,124,801 |
| 2. Increase in this period | 660,155 | 244,817 | 226,588 | 1,131,560 |
| 2.1 Acquisition | 660,155 | 244,817 | 226,588 | 1,131,560 |
| 2.2 Internal R&D | ||||
| 2.3 Business merger increase | ||||
| 3. Decrease in this period | ||||
| 3.1 Disposal | ||||
| 3.2 Others | ||||
| 4. Ending balance | 445,181,002 | 103,133,033 | 189,942,326 | 738,256,361 |
| Ⅱ Accumulated amortization | ||||
| 1. Beginning balance | 108,815,810 | 69,678,463 | 16,004,752 | 194,499,025 |
| 2. Increase in this period | 4,471,972 | 3,805,579 | 231,609 | 8,509,160 |
| 2.1 Accrual | 4,471,972 | 3,805,579 | 231,609 | 8,509,160 |
| 3. Decrease in this period | ||||
| 3.1 Disposal | ||||
| 3.2 Others | ||||
| 4. Ending balance | 113,287,782 | 73,484,042 | 16,236,361 | 203,008,185 |
| Ⅲ Impairment provision | ||||
| 1. Beginning balance | ||||
| 2. Increase in this period | ||||
| 2.1 Accrual | ||||
| 3. Decrease in this period | ||||
| 3.1 Disposal | ||||
| 3.2 Others | ||||
| 4. Ending balance | ||||
| Ⅳ Book value |
Item
| Item | Land use right | Software use right | Trademark | Total |
| 1. Ending book value | 331,893,220 | 29,648,991 | 173,705,965 | 535,248,176 |
| 2. Beginning book value | 335,705,037 | 33,209,753 | 173,710,986 | 542,625,776 |
As at December 31, 2023, no ownership of the intangible assets was restricted.
7.15.2 Particulars of land use right of that not receiving the property certificateNil
7.16 Goodwill
7.16.1 Original book value of goodwill
Unit: yuan
| Name of the invested unit or matter forming goodwill | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
| Formed by business merger | Others | Disposal | Others | |||
| Etablissements Roullet Fransac (“Roullet Fransac”) | 13,112,525 | 13,112,525 | ||||
| Dicot Partners, S.L (“Atrio Group”) | 92,391,901 | 92,391,901 | ||||
| Indomita Wine Company Chile, SpA | 6,870,115 | 6,870,115 | ||||
| Kilikanoon Estate, Australia | 37,063,130 | 37,063,130 | ||||
| Total | 149,437,671 | 149,437,671 | ||||
7.16.2 Provision for impairment of goodwill
Unit: yuan
| Name of the invested unit or matter forming goodwill | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
| Accrual | Others | Disposal | Others | |||
| Etablissements Roullet Fransac (“Roullet Fransac”) | ||||||
| Dicot Partners, S.L (“Atrio Group”) | 5,210,925 | 5,210,925 | ||||
| Indomita Wine Company Chile, SpA | ||||||
| Kilikanoon Estate, Australia | 37,063,130 | 37,063,130 | ||||
| Total | 42,274,055 | 42,274,055 | ||||
7.17 Long-term unamortized expenses
Unit: yuan
Item
| Item | Beginning balance | Increase in this period | Amortization in this period | Other decreases | Ending balance |
| Land acquisition fees | 43,264,838 | 736,215 | 42,528,623 | ||
| Afforestation fees | 110,315,085 | 4,289,952 | 106,025,133 | ||
| Renovation costs | 146,637,493 | 11,926,605 | 5,050,794 | 153,513,304 | |
| Others | 6,444,691 | 361,155 | 415,666 | 6,390,180 | |
| Total | 306,662,107 | 12,287,760 | 10,492,627 | 308,457,240 |
7.18 Deferred income tax assets/liabilities
7.18.1 Un-offset deferred income tax assets
Unit: yuan
| Item | Ending Balance | Beginning Balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Asset impairment provision | 37,970,686 | 9,798,697 | 41,029,365 | 10,563,366 |
| Unrealized profits from inter-company transactions | 284,529,904 | 71,132,476 | 403,653,124 | 100,913,281 |
| Deductible loss | 299,702,899 | 71,532,349 | 261,937,563 | 61,634,797 |
| Unpaid bonus | 62,021,830 | 15,505,458 | 138,873,637 | 34,718,409 |
| Dismission welfare | 6,265,119 | 1,566,280 | 8,475,845 | 2,118,961 |
| Deferred income | 29,292,739 | 6,209,492 | 32,582,734 | 7,021,304 |
| Influence of restricted stock incentive plans | 21,985,751 | 5,451,742 | 17,614,180 | 4,370,992 |
| Influence of leasing standards | 560,352 | 140,088 | 708,367 | 177,094 |
| Total | 742,329,280 | 181,336,582 | 904,874,815 | 221,518,204 |
7.18.2 Un-offset deferred income tax liabilities
Unit: yuan
| Item | Ending Balance | Beginning Balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Assets appraisal appreciation in business combination under non-common control | 25,553,660 | 7,397,675 | 26,659,530 | 7,718,480 |
Impact of leasing standards
| Impact of leasing standards | 3,664,135 | 931,848 | 3,995,628 | 1,001,249 |
| Total | 29,217,795 | 8,329,523 | 30,655,158 | 8,719,729 |
7.18.3 Details of unconfirmed deferred income tax assets
Unit: yuan
| Item | Ending balance | Beginning balance |
| Deductable temporary difference | ||
| Deductible loss | 466,268,251 | 420,651,124 |
| Total | 466,268,251 | 420,651,124 |
7.18.4 Deductible losses of unconfirmed deferred income tax assets will expire in
Unit: yuan
| Year | Ending sum | Beginning sum | Remark |
| 2024 | 36,171,778 | 36,171,778 | |
| 2025 | 70,528,510 | 70,528,510 | |
| 2026 | 68,479,171 | 68,479,171 | |
| 2027 | 128,025,572 | 128,025,572 | |
| 2028 | 117,446,093 | 117,446,093 | |
| 2029 | 45,617,127 | ||
| Total | 466,268,251 | 420,651,124 | -- |
7.19 Other non-current assets
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Advance payment for construction | 1,760,000 | 1,760,000 | ||||
| Total | 1,760,000 | 1,760,000 | ||||
7.20 Assets with restricted ownership or use rights
Unit: yuan
| Item | Ending | Beginning | ||||||
| Book balance | Book value | Restriction type | Restriction state | Book balance | Book value | Restriction type | Restriction state | |
Monetarycapital
| Monetary capital | 7,471,586 | 7,471,586 | Pledge | Security deposit, etc. | 337,895 | 337,895 | Pledge | Security deposit, etc. |
| Fixed assets | 46,653,467 | 33,600,396 | Pledge | Mortgage loan | 46,653,467 | 37,985,117 | Pledge | Mortgage loan |
| Accounts receivable | 56,793,558 | 56,793,558 | Pledge | Factoring restricted | 73,628,265 | 73,628,265 | Pledge | Factoring restricted |
| Total | 110,918,611 | 97,865,540 | 120,619,627 | 111,951,277 |
7.21 Short-term loans
7.21.1 Classification of short-term loans
Unit: yuan
| Item | Ending balance | Beginning balance |
| Mortgage loan | 153,403,322 | 163,103,275 |
| Guaranteed loan | 23,272,320 | |
| Fiduciary loan | 48,654,201 | 178,605,850 |
| Total | 202,057,523 | 364,981,445 |
·As at June 30, 2024, EUR mortgage loan was EUR 7,412,647 (equivalent of RMB 56,793,558yuan) (December 31, 2023: EUR 9,368,417, equivalent of RMB 73,628,264 yuan) of accountsreceivable factoring business handled by Hacienday Vinedos Marques del Atrio, S.L.U. (“Atrio”)with banks including Banco Santander, BBVA, and CAIXABANK;
·As at June 30, 2024, USD mortgage loan was USD 13,500,000 (equivalent of RMB 96,609,764yuan) (December 31, 2023: USD 12,625,000, equivalent of RMB 89,475,011 yuan) of loansborrowed by Chile Indomita Wine Group from Banco Scotiabank with the fixed assets as collateral.
·On June 30, 2024, AUD guaranteed loan (December 31, 2023: AUD 4,800,000, equivalent ofRMB 23,272,320 yuan) borrowed by Australia Kilikanoon Estate from ANZ Bank has been repaid.
7.22 Accounts payable
7.22.1 List of accounts payable
Unit: yuan
| Item | Ending balance | Beginning balance |
Accounts payable for materials, etc.
| Accounts payable for materials, etc. | 397,974,969 | 473,352,525 |
| Total | 397,974,969 | 473,352,525 |
7.22.2 No significant accounts payable aged more than one year in this year
7.23 Contract liabilities
Unit: yuan
| Item | Ending balance | Beginning balance |
| Advances from customers | 138,471,595 | 174,757,233 |
| Withholding of goods with sales rebate | 521,616 | |
| Total | 138,471,595 | 175,278,849 |
7.24 Employee remunerations payable
7.24.1 List of employee remunerations payable
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
| 1. Short-term remuneration | 176,534,963 | 144,584,655 | 239,758,114 | 81,361,504 |
| 2. Post-employment welfare – defined contribution plan | 320,484 | 26,564,658 | 26,842,233 | 42,909 |
| 3. Dismission welfare | 8,475,845 | 1,691,342 | 3,902,068 | 6,265,119 |
| 4.Other welfare due within one year | ||||
| Total | 185,331,292 | 172,840,655 | 270,502,415 | 87,669,532 |
7.24.2 List of short-term remunerations
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
| 1. Salaries, bonuses, allowances and subsidies | 173,350,251 | 119,089,375 | 214,144,911 | 78,294,715 |
| 2. Staff welfare | 1,247,367 | 9,409,212 | 9,211,771 | 1,444,808 |
| 3. Social insurance charges | 295,016 | 7,771,769 | 8,012,615 | 54,170 |
| Including: Medical insurance | 295,016 | 7,118,130 | 7,359,182 | 53,964 |
| Injury insurance | 650,794 | 650,588 | 206 | |
| Maternity insurance | 2,845 | 2,845 | ||
| 4. Housing fund | 38,582 | 6,407,429 | 6,407,429 | 38,582 |
| 5. Union fee and staff education fee | 1,603,747 | 1,906,870 | 1,981,388 | 1,529,229 |
| 6. Short-term compensated absences | ||||
| 7. Short-term profit-sharing plan |
Item
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
| Minus: Those divided into non-current liabilities | ||||
| Total | 176,534,963 | 144,584,655 | 239,758,114 | 81,361,504 |
7.24.3 List of defined contribution plan
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
| 1. Basic endowment insurance | 319,251 | 25,961,016 | 26,237,613 | 42,654 |
| 2. Unemployment insurance | 1,233 | 603,642 | 604,620 | 255 |
| 3. Enterprise annuity payment | ||||
| Total | 320,484 | 26,564,658 | 26,842,233 | 42,909 |
7.24.4 Dismission welfare
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
| 1. Compensation for server of labor relation | ||||
| 2. Compensation for early retirement | 8,475,845 | 1,691,342 | 3,902,068 | 6,265,119 |
| Total | 8,475,845 | 1,691,342 | 3,902,068 | 6,265,119 |
7.25 Taxes and dues payable
Unit: yuan
| Item | Ending balance | Beginning balance |
| Value added tax | 21,721,295 | 65,545,854 |
| Consumption tax | 20,725,067 | 50,879,210 |
| Corporate income tax | 87,628,791 | 134,574,175 |
| Individual income tax | 1,007,144 | 1,414,309 |
| Urban maintenance and construction tax | 2,136,859 | 6,787,018 |
| Education surcharges | 1,584,093 | 5,072,436 |
| Urban land use tax | 2,270,307 | 1,730,986 |
Item
| Item | Ending balance | Beginning balance |
| Others | 8,723,568 | 8,719,443 |
| Total | 145,797,124 | 274,723,431 |
7.26 Other payables
Unit: yuan
| Item | Ending balance | Beginning balance |
| Interest payable | ||
| Dividends payable | 383,085 | |
| Other payables | 353,135,333 | 555,634,336 |
| Total | 353,518,418 | 555,634,336 |
7.26.1 Dividends payable
Unit: yuan
| Item | Ending balance | Beginning balance |
| Ordinary stock dividends | ||
| Preferred stock dividends/sustainable debt dividends divided into equity instruments | ||
| Others | 383,085 | |
| Total | 383,085 |
7.26.2 Other payables
7.26.2.1 Other payables listed by nature
Unit: yuan
| Item | Ending balance | Beginning balance |
| Dealer’s deposit payable | 172,539,878 | 194,060,993 |
| Equipment purchase and construction costs payable | 11,311,800 | 14,832,439 |
| Transportation charges payable | 9,225,843 | 22,301,368 |
| Trademark use fee payable | 7,858,548 | 27,515,798 |
| Advertisement expenses payable | 10,668,411 | 104,815,517 |
| Employee cash deposit | 309,282 | 462,672 |
| Supplier’s deposit payable | 15,585,662 | 18,284,971 |
| Contracting fees payable | 1,165,170 | 3,360,355 |
| Repurchase of treasury stock funds payable | 99,777,462 | 103,411,919 |
| Equity payment payable | 14,623,377 | 14,623,377 |
Others
| Others | 10,069,900 | 51,964,927 |
| Total | 353,135,333 | 555,634,336 |
7.26.2.2 Explanation of large accounts payable aged more than one yearAs at June 30, 2024, there were no other large accounts payable aged more than one year.
7.27 Non-current liabilities due within one year
Unit: yuan
| Item | Ending balance | Beginning balance |
| Long-term loans due within one year | 57,151,244 | 58,510,868 |
| Bonds payable due within one year | ||
| Long-term accounts payable due within one year | ||
| Lease liabilities due within one year | 24,080,511 | 20,013,125 |
| Total | 81,231,755 | 78,523,993 |
7.28 Other current liabilities
| Item | Ending balance | Beginning balance |
| Refund payable | 24,869,246 | |
| Unamortized VAT amount | 18,001,307 | 20,089,051 |
| Total | 18,001,307 | 44,958,297 |
7.29 Long-term loans
7.29.1 Classification of long-term loans
Unit: yuan
| Item | Ending balance | Beginning balance |
| Fiduciary loan | 93,803,175 | 125,127,311 |
| Minus: Long-term loans due within one year | 57,151,244 | 58,510,868 |
| Total | 36,651,931 | 66,616,443 |
As at June 30, 2024, fiduciary loans (EUR) were EUR 12,243,128 (equivalent of RMB 93,803,175yuan) (December 31, 2023: EUR 15,921,126, equivalent of RMB 125,127,311 yuan) borrowed byAtrio from banks including Banco de Sabadell S.A., Bankia, Banco Santander, BBVA, and Caja
Rural de Navarr.
7.30 Lease Liabilities
Unit: yuan
| Item | Ending balance | Beginning balance |
| Long-term lease liabilities | 92,215,196 | 105,051,460 |
| Minus: Lease liabilities due within one year | 24,080,511 | 20,013,125 |
| Total | 68,134,685 | 85,038,335 |
7.31 Deferred income
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance | Forming reason |
| Governmental subsidy | 32,582,734 | 576,000 | 3,865,995 | 29,292,739 | |
| Total | 32,582,734 | 576,000 | 3,865,995 | 29,292,739 | -- |
Projects related to governmental subsidy
Unit: yuan
| Item of liabilities | Beginning balance | Amount of subsidy newly increased in this period | Amount included in non-operating revenue in this period | Amount included in other income in | Amount offset the cost expenses | Other changes | Ending balance | Related to assets/ income |
| Industrial development supporting funds | 12,300,000 | 2,050,000 | 10,250,000 | Related to assets | ||||
| Subsidy for retaining wall | 8,835,333 | 494,000 | 8,341,333 | Related to assets | ||||
| Xinjiang industrial revitalization and technological transformation project | 8,532,000 | 711,000 | 7,821,000 | Related to assets | ||||
| Wine fermentation capacity construction (Huanren) project | 1,200,000 | 200,000 | 1,000,000 | Related to assets | ||||
| Special funds for efficient water-saving irrigation project | 829,000 | 81,000 | 748,000 | Related to assets |
Item of liabilities
| Item of liabilities | Beginning balance | Amount of subsidy newly increased in this period | Amount included in non-operating revenue in this period | Amount included in other income in | Amount offset the cost expenses | Other changes | Ending balance | Related to assets/ income |
| Subsidy for economic and energy-saving technological transformation projects | 384,900 | 64,150 | 320,750 | Related to assets | ||||
| Subsidy for scenic spot construction | 245,784 | 12,500 | 233,284 | Related to assets | ||||
| Subsidy for mechanic development of Penglai Daliuhang Base | 55,717 | 17,345 | 38,372 | Related to assets | ||||
| Jugezhuang government leisure agriculture subsidy | 200,000 | 576,000 | 236,000 | 540,000 | Related to income | |||
| Total | 32,582,734 | 576,000 | 3,865,995 | 29,292,739 |
7.32 Share capital
Unit: yuan
| Item | Beginning balance | Increase or decrease (+,-) in this period | Ending balance | ||||
| Newly issued shares | Allocated shares | Share transferred from accumulation fund | Others | Subtotal | |||
| Total shares | 692,249,559 | 692,249,559 | |||||
7.33 Capital reserves
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
| Capital premium (share capital premium) | 615,678,532 | 25,146,195 | 17,816 | 640,806,911 |
| Other capital reserves | 35,408,175 | 780,883 | 34,627,292 | |
| Total | 651,086,707 | 25,146,195 | 798,699 | 675,434,203 |
·During the reporting period, the implementation of restricted stock incentive plans resulted in anincrease of RMB 25,146,195 yuan in capital reserves due to the recognition of amortizationexpenses.
·Due to the acquisition of a minority equity in Australia Kilikanoon Estate, the Companyrecognized in the capital reserve the difference between the newly-acquired long-term equityinvestment and the net asset share of the subsidiary that shall be continuously calculated from thedate of acquisition based on the newly-increased shareholding ratio, resulting in a decrease of RMB780,883 yuan in capital reserve. Please refer to Note 10.2 for details.
·According to the Plan for Repurchasing Shares of Part of Domestic Listed Foreign Shares(B-shares) of the Company approved at the first extraordinary general meeting of shareholders in2024, from January to June 2024, the transaction costs incurred by the Company in repurchasing theCompany’s shares through the dedicated securities account amounted to RMB 17,816 yuan,offsetting the capital premium of RMB 17,816 yuan.
7.34 Treasury share
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
| Repurchase of B-shares | 150,932,125 | 150,932,125 | ||
| Repurchase of restricted stock | 103,411,919 | 3,419,921 | 99,991,998 | |
| Total | 103,411,919 | 150,932,125 | 3,419,921 | 250,924,123 |
·The first extraordinary board meeting of 2024 was held on February 22, 2024, and the firstextraordinary shareholders’ meeting of 2024 was held on March 11, 2024. The Plan forRepurchasing Shares of Part of Domestic Listed Foreign Shares (B-shares) of the Company wasreviewed and approved. According to the above-mentioned B-share repurchase plan, the Companywill implement the repurchase of domestic listed foreign shares (B-shares) through centralizedbidding trading, taking into account its own financial and operating conditions, with a totalrepurchase capital not exceeding RMB 200 million yuan and a repurchase price not exceeding HKD
12.65 per share (as the Company has implemented the 2023 equity distribution, the upper limit ofthe repurchase price of B-shares through centralized bidding trading has been adjusted from nomore than HKD 12.65 per share (inclusive) to no more than HKD 12.11 per share (inclusive)). Therepurchase period shall not exceed 12 months from the date of approval of share repurchase plan bythe shareholders’ meeting. The number of shares to be repurchased shall not be less than 10 millionshares and shall not exceed 20 million shares. The repurchased shares shall be cancelled and theregistered capital of the Company shall be correspondingly reduced.
·As of June 30, 2024, the Company has repurchased a total of 16,860,000 domestic listed foreignshares (B-shares) through centralized bidding method via a special securities account for sharerepurchase, accounting for 2.4355378% of the Company’s current total share capital. The highesttransaction price was HKD 10.16 per share, the lowest transaction price was HKD 9.26 per share,and the total transaction amount was HKD 162,467,975.57 (excluding transaction costs), equivalentto RMB 150,932,125.
·According to the Company’s 2023 profit distribution plan, the Company distributes a cashdividend of 3,419,921 yuan to restricted stock incentive objects, and reduced the amount of treasurystock by 3,419,921 yuan in accordance with relevant provisions of Enterprise AccountingStandards.
7.35 Other comprehensive income
Unit: yuan
| Item | Beginning | Amount incurred in this period | Ending |
balance
| balance | Amount incurred before income tax in this period | Minus: amount included in other comprehensive income before and transferred to profit or loss in this period | Minus: amount included in other comprehensive income before and transferred to retained earnings in this period | Minus: income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | balance | |
| 1. Other comprehensive income not to be reclassified into profit and loss later | ||||||||
| Including: Changes after re-measuring and resetting the benefit plans | ||||||||
| Other comprehensive income not to be reclassified into profit and loss under equity method | ||||||||
| Changes in the fair value of other investments in equity instruments | ||||||||
| Changes in the fair value of the enterprise’s own credit risk | ||||||||
| 2. Other comprehensive income to be reclassified into profit and loss later | -14,784,677 | -11,182,076 | -10,069,669 | -1,112,407 | -24,854,346 | |||
| Including: Other comprehensive income to be reclassified into profit and loss under equity method | ||||||||
| Changes in the fair value of other debt investments | ||||||||
| Amount of financial assets reclassified into other comprehensive income | ||||||||
| Provision for credit impairment of other credit investments | ||||||||
| Provision for cash-flow hedge | ||||||||
| Difference in translation of Foreign Currency Financial Statement | -14,784,677 | -11,182,076 | -10,069,669 | -1,112,407 | -24,854,346 | |||
| Total other comprehensive income | -14,784,677 | -11,182,076 | -10,069,669 | -1,112,407 | -24,854,346 |
7.36 Surplus reserves
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
| Legal surplus reserves | 342,732,000 | 342,732,000 | ||
| Free surplus reserves | ||||
| Reserve fund | ||||
| Enterprise expansion fund | ||||
| Others | ||||
| Total | 342,732,000 | 342,732,000 |
7.37 Undistributed profit
Unit: yuan
| Item | This period | Prior period |
| Undistributed profit at the end of prior period before adjustment | 9,273,629,318 | 9,049,649,211 |
| Total undistributed profit at the beginning of the period before adjustment (increase listed with+ , and decrease listed with -) | ||
| Undistributed profit at the beginning of the period after adjustment | 9,273,629,318 | 9,049,649,211 |
| Plus: Net profit for owner of the parent company | 221,177,382 | 532,438,907 |
| Minus: Drawn legal surplus | ||
| Drawn free surplus | ||
| Drawn common risk provision | ||
| Common dividend payable | 345,910,244 | 308,458,800 |
| Common dividend transferred to share capital | ||
| Undistributed profit at the end of period | 9,148,896,456 | 9,273,629,318 |
7.38 Operating income and operating cost
7.38.1 Details of operating income
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,487,897,428 | 583,656,058 | 1,934,472,124 | 796,260,619 |
| Other businesses | 34,412,008 | 12,092,672 | 32,266,361 | 9,198,773 |
Item
| Item | Amount incurred in this period | Amount incurred in prior period | ||
| Income | Cost | Income | Cost | |
| Total | 1,522,309,436 | 595,748,730 | 1,966,738,485 | 805,459,392 |
| Including: Income from contracts | 1,519,454,062 | 593,381,289 | 1,965,668,542 | 804,756,028 |
| Income from house rents | 2,855,374 | 2,367,441 | 1,069,943 | 703,364 |
7.38.2 Situation of income from and cost of contracts
Unit: yuan
| Contract classification | Operating income | Operating cost |
| Type of merchandise | ||
| - Alcoholic beverage | 1,487,897,428 | 583,656,058 |
| - Others | 31,556,634 | 9,725,231 |
| Classified by the time of merchandise transfer | ||
| - Revenue recognized at a point in time | 1,519,454,062 | 593,381,289 |
7.39 Taxes and surcharges
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Consumption tax | 73,844,921 | 83,799,789 |
| Urban maintenance and construction tax | 8,854,663 | 13,221,014 |
| Education surcharges | 6,398,857 | 9,591,885 |
| Building tax | 16,684,157 | 17,081,105 |
| Land use tax | 4,946,440 | 5,443,389 |
| Vehicle and vessel use tax | 13,677 | 13,298 |
| Stamp duty | 1,928,621 | 2,190,579 |
| Others | 149,271 | 106,007 |
| Total | 112,820,607 | 131,447,066 |
7.40 Selling expenses
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Salary and welfare expenses | 109,157,587 | 133,331,239 |
| Marketing expenses | 108,239,032 | 150,784,963 |
| Labor expenses | 14,966,602 | 18,891,110 |
Depreciation expenses
| Depreciation expenses | 33,555,237 | 31,599,626 |
| Storage expenses | 12,833,741 | 13,287,122 |
| Advertisement expenses | 27,638,002 | 25,707,453 |
| Trademark use fees | 7,858,547 | 11,320,305 |
| Travel expenses | 12,764,888 | 12,462,566 |
| Design & production expenses | 2,757,387 | 9,833,969 |
| Conference expenses | 3,299,438 | 4,528,120 |
| Water, electricity and gas charges | 4,438,730 | 4,658,860 |
| Restricted stock incentive plan expenses | 17,339,929 | |
| Others | 37,067,395 | 36,596,377 |
| Total | 391,916,515 | 453,001,710 |
7.41 Management expenses
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Employee remunerations | 32,475,958 | 29,528,907 |
| Depreciation expenses | 40,527,533 | 46,150,402 |
| Contracting expenses | 2,007,300 | 2,119,800 |
| Repair expenses | 2,193,997 | 1,865,967 |
| Office expenses | 10,921,919 | 10,169,392 |
| Amortization expenses | 7,922,598 | 8,377,335 |
| Afforestation fees | 6,807,871 | 6,950,800 |
| Safe production costs | 2,940,546 | 3,124,162 |
| Business entertainment expenses | 1,475,072 | 1,373,098 |
| Public security & clean-keeping expenses | 3,208,403 | 3,539,193 |
| Travel expenses | 1,527,146 | 1,235,690 |
| Depreciation and amortization of right-of-use assets | 4,290,210 | 4,510,427 |
| Restricted stock incentive plan expenses | 7,806,266 | 671,300 |
| Others | 8,840,796 | 9,078,922 |
| Total | 132,945,615 | 128,695,395 |
7.42 R&D expenses
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| R&D expenses | 6,748,675 | 6,653,626 |
| Total | 6,748,675 | 6,653,626 |
7.43 Financial expenses
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Interest expenditure | 9,918,886 | 12,325,532 |
| Minus: Interest income | 12,390,815 | 9,060,578 |
| Plus: Commission charges | 705,999 | 662,758 |
| Exchange gain or loss | 4,989,440 | -701,279 |
| Total | 3,223,510 | 3,226,433 |
7.44 Other income
Unit: yuan
| Source of other income | Amount incurred in this period | Amount incurred in prior period |
| Industrial development supporting funds | 2,050,000 | 2,050,000 |
| Wine fermentation capacity construction project | 200,000 | 200,000 |
| Xinjiang industrial revitalization and technological transformation project | 711,000 | 711,000 |
| Subsidy for retaining wall | 494,000 | 319,000 |
| Other – related to assets | 174,996 | 502,740 |
| Special funds for supporting corporate development | 8,732,100 | 14,840,000 |
| Talent development fund | 3,650,000 | |
| Market development and product development subsidies | 15,500,000 | 4,300,000 |
| Other – related to income | 2,118,544 | 6,048,445 |
| Total | 33,630,640 | 28,971,185 |
7.45 Investment income
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Investment income from long-term equity by equity method | -1,932,092 | -932,588 |
| Investment income from disposal of long-term equity | 16,547,124 | |
| Investment income gained from trading financial assets during the holding period | ||
| Investment income gained from disposal of trading financial assets |
Item
| Item | Amount incurred in this period | Amount incurred in prior period |
| Dividend income gained from other equity instruments during the holding period | ||
| Gains generated from the remaining equity re-measured as per fair value after the loss of control | ||
| Interest income gained from equity investment during the holding period | ||
| Interest income gained from other equity investments during the holding period | ||
| Investment income gained from disposal of other equity investments | ||
| Total | -1,932,092 | 15,614,536 |
7.46 Loss on impairment of credit
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Loss on bad debts of accounts receivable | 4,083,362 | -993,494 |
| Total | 4,083,362 | -993,494 |
7.47 Loss on impairment of assets
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Inventory falling price loss and loss on impairment of contract execution cost | -1,024,683 | -244,434 |
| Total | -1,024,683 | -244,434 |
7.48 Income from asset disposal
Unit: yuan
| Source of income from asset disposal | Amount incurred in this period | Amount incurred in prior period |
| Income from disposal of fixed assets | 4,647 | 341,232 |
| Income from disposal of productive biological assets | -639,633 | |
| Total | 4,647 | -298,401 |
7.49 Non-operating income
Unit: yuan
Item
| Item | Amount incurred in this period | Amount incurred in prior period | Amount included in the current non-recurring profits/losses |
| Gains on exchange of non-monetary assets | |||
| Grains on donations | |||
| Governmental subsidy | |||
| Gains on scrap of non-current assets | 975 | 975 | |
| Others | 1,676,650 | 1,772,522 | 1,676,650 |
| Total | 1,677,625 | 1,772,522 | 1,677,625 |
7.50 Non-operating expenses
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period | Amount included in the current non-recurring profits/losses |
| Loss on exchange of non-monetary assets | |||
| Donation | 350,000 | 900,000 | 350,000 |
| Loss on scrap of non-current assets | 101,292 | 20,717 | 101,292 |
| Fine, penalty and overdue fine paid due to violation of laws and administrative regulations | 131,210 | 104,298 | 131,210 |
| Others | 29,081 | 1,100,930 | 29,081 |
| Total | 611,583 | 2,125,945 | 611,583 |
7.51 Income tax expenses
7.51.1 List of income tax expenses
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Current income tax expenses | 52,966,929 | 120,466,280 |
| Deferred income tax expenses | 39,791,416 | 9,884,233 |
| Total | 92,758,345 | 130,350,513 |
7.51.2 Adjustment process of accounting profit and income tax expenses
Unit: yuan
| Item | Amount incurred in this period |
| Total profit | 314,733,700 |
| Income tax expenses calculated according to the legal/applicable tax rate | 78,683,425 |
| Influence of different tax rates applicable to subsidiary | 502,595 |
Item
| Item | Amount incurred in this period |
| Influence of income tax in the term before adjustment | 1,396,038 |
| Influence of nontaxable income | |
| Influence of non-deductible costs, expenses and losses | 2,212,619 |
| Influence of deductible loss from use of unconfirmed deferred income tax assets in prior period | -1,024,750 |
| Influence of deductible temporary difference or deductible loss of unconfirmed deferred income tax assets in this period | 10,988,418 |
| Income tax expense | 92,758,345 |
7.52 Other comprehensive incomes
Refer to Note 7.35 for details.
7.53 Items of cash flow statement
7.53.1 Other cash received related to operating activities
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Governmental subsidy income | 30,340,645 | 24,849,782 |
| Interest income | 7,777,846 | 8,892,658 |
| Net amercement income | 39,759 | 254,866 |
| Others | 10,735,002 | 13,253,796 |
| Total | 48,893,252 | 47,251,102 |
7.53.2 Other cash paid related to operating activities
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Selling expenses | 239,116,719 | 242,901,628 |
| Administrative expenses | 37,828,283 | 41,163,720 |
| Guaranteed deposits paid | 6,500,000 | |
| Others | 13,297,751 | 8,743,269 |
| Total | 296,742,753 | 292,808,617 |
7.53.3 Other cash received related to investing activities
Unit: yuan
Item
| Item | Amount incurred in this period | Amount incurred in prior period |
| Net cash received from acquiring subsidiaries | 657,049 | |
| Total | 657,049 |
7.53.4 Other cash paid related to financing activities
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Cash paid for repurchasing B shares | 150,949,941 | |
| Cash paid for leasing | 14,897,311 | 11,384,300 |
| Cash paid for acquiring minority shareholders’ equity | 1,883,538 | 14,623,400 |
| Capital reduction paid to minority shareholders | 12,000,000 | |
| Total | 167,730,790 | 38,007,700 |
Changes in various liabilities arising from financing activities
Unit: yuan
| Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
| Cash movement | Non-cash movement | Cash movement | Non-cash movement | |||
| Short-term loans | 364,981,445 | 221,741,429 | 2,425,452 | 371,150,698 | 15,940,105 | 202,057,523 |
| Long term loans (including long-term liabilities due within one year) | 125,127,311 | 85,321,908 | 113,501,622 | 3,144,422 | 93,803,175 | |
| Lease liabilities (including lease liabilities due within one year) | 105,051,460 | 2,061,047 | 14,897,311 | 92,215,196 | ||
| Other payables - dividends payable | 346,124,780 | 346,124,780 | ||||
| Other payables - interest payable | 13,247,788 | 13,247,788 | ||||
| Other payables - equity payment payable | 14,623,377 | 14,623,377 | ||||
| Other payables - accounts payable for repurchasing treasury shares | 103,411,919 | 3,634,457 | 99,777,462 | |||
| Other payables – repurchasing B shares | 150,949,941 | 150,949,941 | ||||
| Other payables - return the investment of minority shareholders | 1,883,538 | 1,883,538 | ||||
| Total | 713,195,512 | 307,063,337 | 516,692,546 | 1,011,755,678 | 22,718,984 | 502,476,733 |
7.54 Supplementary information to cash flow statement
7.54.1 Supplementary information to cash flow statement
Unit: yuan
| Supplementary materials | Amount in this period | Amount in prior period |
| 1. Cash flows from operating activities calculated by adjusting | -- | -- |
Supplementary materials
| Supplementary materials | Amount in this period | Amount in prior period |
| the net profit: | ||
| Net profit | 221,975,355 | 350,600,319 |
| Plus: Provision for impairment of assets | -3,058,679 | 1,237,928 |
| Depreciation of fixed assets, oil-and-gas assets and productive biological assets | 162,202,787 | 164,005,102 |
| Depreciation of right-of-use assets | 11,023,676 | 11,082,444 |
| Amortization of intangible assets | 8,509,160 | 8,936,336 |
| Amortization of long-term deferred expenses | 10,492,627 | 9,079,775 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (profit listed with “-”) | -4,647 | 298,401 |
| Losses on retirement of fixed assets (profit listed with “-”) | 100,317 | 20,717 |
| Losses on fair value change (profit listed with “-”) | ||
| Financial costs (profit listed with “-”) | 6,383,382 | 10,419,504 |
| Investment losses (profit listed with “-”) | 1,932,092 | -15,614,536 |
| Decrease in deferred income tax assets (increase listed with “-”) | 40,181,622 | 12,217,010 |
| Increase of deferred income tax liabilities (decrease listed with “-”) | -390,206 | -2,332,777 |
| Decrease in inventories (increase listed with “-”) | -121,836,747 | -22,578,567 |
| Decrease in operating receivables (increase listed with “-”) | 423,502,362 | 217,964,425 |
| Increase in operating payable (decrease listed with “-”) | -582,278,932 | -218,087,595 |
| Others | 25,146,195 | 671,300 |
| Net cash flows from operating activities | 203,880,364 | 527,919,786 |
| 2. Significant investment and financing activities not involving cash deposit and withdrawal: | ||
| Debt transferred into assets | ||
| Convertible corporate bond due within one year | ||
| Fixed assets under financing lease | ||
| 3. Net changes of cash and cash equivalent: | ||
| Ending balance of cash | 1,562,989,249 | 1,423,080,779 |
| Minus: Beginning balance of cash | 1,963,155,752 | 1,612,753,600 |
| Plus: Ending balance of cash equivalent | ||
| Minus: Beginning balance of cash equivalent |
Supplementary materials
| Supplementary materials | Amount in this period | Amount in prior period |
| Net increase amount of cash and cash equivalent | -400,166,503 | -189,672,821 |
7.54.2 Composition of cash and cash equivalents
Unit: yuan
| Item | Ending balance | Beginning balance |
| 1. Cash | 1,562,989,249 | 1,963,155,752 |
| Including: Cash on hand | 28,867 | 59,243 |
| Bank deposits available for payment at any time | 1,513,910,104 | 1,423,021,536 |
| Other monetary funds available for payment at any time | 49,050,278 | |
| Deposits with central bank available for payment | ||
| 2. Cash equivalents | ||
| Including: Bond investment due within three months | ||
| 3. Balance of cash and cash equivalents at the end of period | 1,562,989,249 | 1,963,155,752 |
7.55 Monetary items of foreign currency
7.55.1 Monetary items of foreign currency
| Item | Ending balance at foreign currency | Converted exchange rate | Ending balance at RMB equivalent |
| Monetary capital | 47,232,240 | ||
| Including: USD | 480,399 | 7.1268 | 3,423,708 |
| EUR | 67 | 7.6617 | 513 |
| HKD | 48,003,527 | 0.9126 | 43,808,019 |
| Accounts receivable | 49,612,082 | ||
| Including: USD | 5,801,250 | 7.1268 | 41,344,349 |
| EUR | 303,383 | 7.6617 | 2,324,430 |
| CAD | 1,107 | 5.2274 | 5,787 |
| GBP | 656,587 | 9.0430 | 5,937,516 |
| Short-term borrowings | 97,102,650 | ||
| Including: USD | 13,625,000 | 7.1268 | 97,102,650 |
| EUR | |||
| HKD | |||
| -- | -- |
7.55.2 The Company’s overseas subsidiaries determine their functional currency based on thecurrency in the main economic environment in which they operate. The functional currency of Atrioand Francs Champs Participations SAS (“Farshang Holdings”) is Euro, the functional currency ofChile Indomita Wine Group is Chilean Peso, and the functional currency of Australia KilikanoonEstate is Australian Dollar.
8. R&D expenditure
| Item | Amount incurred in this period | Amount incurred in prior period |
| Employee compensation | 1,743,745 | 1,103,311 |
| Test and laboratory fees | 117,777 | 163,766 |
| Consulting fees | 1,646,916 | 1,892,504 |
| Consumption of materials | 176,976 | 216,395 |
| Others | 3,063,261 | 3,277,650 |
| Total | 6,748,675 | 6,653,626 |
| Including: Expensing research and development expenses | 6,748,675 | 6,653,626 |
| Capitalized research and development expenses |
9. Change of scope of consolidation
In the reporting period, the following new company was included to the consolidation scope of theGroup:
| Full name of investee | Method of obtaining equity | Foundation date | Business nature | Registered capital | Actual capital contribution |
| Ningxia Longyu Food Trading Co., Ltd. | Establishment | May 6, 2024 | Sales | RMB 500,000 yuan |
10. Equity in other entities
10.1 Equity in subsidiaries
10.1.1 Constitution of enterprise group
| Name of subsidiary | Registered capital | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
| Direct | Indirect | ||||||
Name of subsidiary
| Name of subsidiary | Registered capital | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
| Direct | Indirect | ||||||
| Etablissements Roullet Fransac (“Roullet Fransac”) | EUR2,900,000 | Cognac, France | Cognac, France | Trading | 100 | Acquired from a business combination under non-common control | |
| Dicot Partners, S.L (“Dicot”) | EUR2,000,000 | Navarre, Spain | Navarre, Spain | Sales | 90 | Acquired from a business combination under non-common control | |
| Vi?aIndómita, S.A.,Vi?aDosAndes, S.A., and BodegasSanta Alicia SpA. (“Indomita Wine”) | CLP31,100,000,000 | Santiago, Chile | Santiago, Chile | Sales | 85 | Acquired by establishment or investment | |
| Kilikanoon Estate Pty Ltd. (“Australia Kilikanoon Estate”) | AUD6,420,000 | Adelaide, Australia | Adelaide, Australia | Sales | 99 | Acquired from a business combination under non-common control | |
| Beijing Changyu Sales and Distribution Co., Ltd. (“Beijing Sales”) | RMB1,000,000 | Beijing, China | Beijing, China | Sales | 100 | Acquired by establishment or investment | |
| Yantai Kylin Packaging Co., Ltd. (“Kylin Packaging”) | RMB15,410,000 | Yantai, Shandong, China | Yantai, Shandong, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Yantai Chateau Changyu-Castel Co., Ltd. (“Chateau Changyu”) (a) | USD5,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Manufacturing | 70 | Acquired by establishment or investment | |
| Changyu (Jingyang) Wine Co., Ltd. (“Jingyang Wine”) | RMB1,000,000 | Xianyang, Shaanxi, China | Xianyang, Shaanxi, China | Manufacturing | 90 | 10 | Acquired by establishment or investment |
| Yantai Changyu Pioneer Wine Sales Co., Ltd. (“Sales Company”) | RMB8,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100 | Acquired by establishment or investment | |
| Shanghai Changyu Sales and Distribution Co., Ltd. (“Shanghai Sales”) | RMB1,000,000 | Shanghai, China | Shanghai, China | Sales | 100 | Acquired by establishment or investment | |
| Beijing Changyu AFIP Agriculture development Co., Ltd. (“Agriculture Development”) | RMB1,000,000 | Miyun, Beijing, China | Miyun, Beijing, China | Sales | 100 | Acquired by establishment or investment | |
| Beijing Chateau Changyu AFIP Global Co., Ltd. (“AFIP”) (b) | RMB642,750,000 | Beijing, China | Beijing, China | Manufacturing | 91.53 | Acquired by establishment or investment | |
| Yantai Changyu Wine Sales Co., Ltd. (“Wines Sales”) | RMB5,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 90 | 10 | Acquired by establishment or investment |
| Yantai Changyu Pioneer International Co., Ltd. (“Pioneer International”) | RMB5,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 70 | 30 | Acquired by establishment or investment |
| Hangzhou Changyu Wine Sales Co., Ltd. (“Hangzhou Changyu”) | RMB500,000 | Hangzhou, Zhejiang, China | Hangzhou, Zhejiang, China | Sales | 100 | Acquired by establishment or investment | |
| Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”) | RMB1,000,000 | Yinchuan, Ningxia, China | Ningxia, China | Planting | 100 | Acquired by establishment or investment | |
| Huanren Changyu National Wines Sales Co., Ltd. (“National Wines”) | RMB2,000,000 | Benxi, Liaoning, China | Benxi, Liaoning, China | Sales | 100 | Acquired by establishment or investment | |
| Liaoning Changyu Golden Icewine Valley Co., Ltd. (“Golden Icewine Valley”) | RMB59,687,300 | Benxi, Liaoning, China | Benxi, Liaoning, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Yantai Development Zone Changyu Trading Co., Ltd. (“Development Zone Trading”) | RMB5,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100 | Acquired by establishment or investment | |
| Beijing AFIP Meeting Center | RMB500,000 | Miyun, Beijing, China | Miyun, Beijing, China | Services | 100 | Acquired by establishment or | |
Name of subsidiary
| Name of subsidiary | Registered capital | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
| Direct | Indirect | ||||||
| (“Meeting Center”) | investment | ||||||
| Beijing AFIP Tourism and Culture (“AFIP Tourism”) | RMB500,000 | Miyun, Beijing, China | Miyun, Beijing, China | Tourism | 100 | Acquired by establishment or investment | |
| Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”) | RMB1,000,000 | Ningxia, China | Ningxia, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Yantai Changyu Chateau Tinlot Co., Ltd. (“Chateau Tinlot”) | RMB400,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Wholesale and retail | 65 | 35 | Acquired by establishment or investment |
| Xinjiang Chateau Changyu Baron Balboa Co., Ltd. (“Chateau Shihezi”) | RMB550,000,000 | Shihezi, Xinjiang, China | Shihezi, Xinjiang, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Ningxia Chateau Changyu Longyu Co., Ltd. (“Chateau Ningxia”) | RMB2,000,000 | Yinchuan, Ningxia, China | Yinchuan, Ningxia, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Shaanxi Chateau Changyu Rena Co., Ltd. (“Chateau Chang’an”) | RMB20,000,000 | Xianyang, Shaanxi, China | Xianyang, Shaanxi, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Yantai Changyu Wine Research, Development, and Manufacturing Co., Ltd. (“R&D Centre”) | RMB500,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Changyu (Huanren) Wine Co., Ltd. (“Huanren Wine”) | RMB5,000,000 | Benxi, Liaoning, China | Benxi, Liaoning, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Xinjiang Changyu Sales Co., Ltd. (“Xinjiang Sales”) | RMB10,000,000 | Shihezi, Xinjiang, China | Shihezi, Xinjiang, China | Sales | 100 | Acquired by establishment or investment | |
| Ningxia Changyu Trading Co., Ltd. (“Ningxia Trading”) | RMB1,000,000 | Yinchuan, Ningxia, China | Yinchuan, Ningxia, China | Sales | 100 | Acquired by establishment or investment | |
| Shaanxi Changyu Rena Wine Sales Co., Ltd. (“Shaanxi Sales”) | RMB3,000,000 | Xianyang, Shaanxi, China | Xianyang, Shaanxi, China | Sales | 100 | Acquired by establishment or investment | |
| Penglai Changyu Wine Sales Co., Ltd. (“Penglai Wine”) | RMB5,000,000 | Penglai, Shandong, China | Penglai, Shandong, China | Sales | 100 | Acquired by establishment or investment | |
| Laizhou Changyu Wine Sales Co., Ltd. (“Laizhou Sales”) | RMB1,000,000 | Laizhou, Shandong, China | Laizhou, Shandong, China | Sales | 100 | Acquired by establishment or investment | |
| FrancsChampsParticipationsSAS (“Francs Champs”) | EUR32,000,000 | Cognac, France | Cognac, France | Investment and trading | 100 | Acquired by establishment or investment | |
| Yantai Roullet Fransac Wine Sales Co., Ltd. (“Yantai Roullet Fransac”) | RMB1,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100 | Acquired by establishment or investment | |
| Yantai Changyu Wine Sales Co., Ltd. (“Wine Sales Company”) | RMB5,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100 | Acquired by establishment or investment | |
| Shaanxi Chateau Changyu Rena Tourism Co., Ltd. (“Chateau Tourism”) | RMB1,000,000 | Xianxin, Shaanxi, China | Xianxin, Shaanxi, China | Tourism | 100 | Acquired by establishment or investment | |
| Longkou Changyu Wine Sales Co., Ltd. (“Longkou Sales”) | RMB1,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100 | Acquired by establishment or investment | |
| Yantai Changyu Cultural Tourism Development Co., Ltd. (“Changyu Cultural Tourism Company”) | RMB10,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Tourism | 100 | Acquired by establishment or investment | |
| Yantai Changyu Wine Culture Museum Co., Ltd. (“Museum”) | RMB500,000 | Yantai, Shandong, China | Yantai, Shandong, China | Tourism | 100 | Acquired by establishment or investment | |
| Yantai Changyu Cultural Tourism Product Sales Co., Ltd. | RMB5,000,000 | Yantai, Shandong, | Yantai, Shandong, | Tourism | 100 | Acquired by establishment or | |
Name of subsidiary
| Name of subsidiary | Registered capital | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
| Direct | Indirect | ||||||
| (“Cultural Sales”) | China | China | investment | ||||
| Yantai Changyu Window of International Wine City Co. Ltd. (“Window of Wine City”) | RMB60,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Tourism | 100 | Acquired by establishment or investment | |
| Yantai Chateau Koya Brandy Co., Ltd. (“Chateau Koya”) | RMB10,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Manufacturing | 100 | Acquired by establishment or investment | |
| Changyu (Shanghai) International Digital Marketing Center Co., Ltd. (“Digital Marketing”) | RMB50,000,000 | Hongkou, Shanghai, China | Hongkou, Shanghai, China | Sales | 100 | Acquired by establishment or investment | |
| Shanghai Changyu Guoqu Digital Technology Co., Ltd. (“Shanghai Guoqu”) | RMB6,000,000 | Hongkou, Shanghai, China | Hongkou, Shanghai, China | Sales | 51 | Acquired by establishment or investment | |
| Tianjin Changyu Yixin Digital Technology Co., Ltd. (“Tianjin Yixin”) | RMB10,000,000 | Binhai New Area, Tianjin, China | Binhai New Area, Tianjin, China | Sales | 51 | Acquired by establishment or investment | |
| Shanghai Changyu Yixin Digital Technology Co., Ltd. (“Shanghai Yixin”) | RMB10,000,000 | Hongkou, Shanghai, China | Hongkou, Shanghai, China | Sales | 51 | Acquired by establishment or investment | |
| Yantai Christon Catering Co., Ltd. (“Christon Catering”) | RMB1,000,000 | Yantai, Shandong, China | Yantai, Shandong, China | Services | 100 | Acquired by establishment or investment | |
| Weimeisi (Shanghai) Enterprise Development Co., Ltd. (“Weimeisi Shanghai”) | RMB10,000,000 | Shanghai, China | Shanghai, China | Sales | 100 | Acquired by establishment or investment | |
| Ningxia Longyu Food Trading Co., Ltd. (Longyu Trading) | RMB 500,000 | Yinchuan, Ningxia, China | Yinchuan, Ningxia, China | Sales | 100 | Acquired by establishment or investment | |
Explanation for difference between the proportion of shareholding and proportion of voting powerin the subsidiaries:
(a) Chateau Changyu is a Sino-foreign joint venture established by the Group and a foreigninvestor, accounting for 70% of Changyu Chateau’s equity interest. Through agreementarrangement, the Group has the full power to control Changyu Chateau’s strategic operating,investing and financing policies.
(b) AFIP is a limited liability company jointly established by the Group and Yantai De’an and
Beijing Qinglang. In June 2019, Yantai Dean transferred 1.31% of its equity to Yantai Changyu.After the equity change, the Group holds 91.53% of its equity. Through agreement arrangement,the Group has the full power to control AFIP’s strategic operating, investing and financingpolicies. The agreement arrangement will be terminated on September 2, 2024.
10.1.2 Important non-wholly-owned subsidiaries
Unit: yuan
| Name of subsidiary | Shareholding | Profit/loss | Other | Dividend declared | Balance of minority |
proportion of
minorityshareholders
| proportion of minority shareholders | attributable to minority shareholders in this period | comprehensive income attributable to minority shareholders in this period | to be distributed to minority shareholders in this period | equity at the end of period | |
| AFIP | 8.47% | 56,409,393 | |||
| Indomita Wine | 15% | -79,261 | -820,870 | 56,461,307 |
Explanation for difference between the proportion of shareholding and proportion of voting powerof the minority shareholders in the subsidiaries: See details in Note 10.1.1.
10.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: yuan
| Name of subsidiary | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| AFIP | 264,108,834 | 378,244,258 | 642,353,092 | 23,725,057 | 3,826,256 | 27,551,313 | 268,602,777 | 384,948,572 | 653,551,349 | 26,013,757 | 3,603,886 | 29,617,643 |
| Indomita Wine | 223,976,385 | 314,053,165 | 538,029,550 | 144,464,755 | 9,598,445 | 154,063,200 | 252,718,459 | 314,112,626 | 566,831,085 | 167,265,413 | 9,598,445 | 176,863,858 |
Unit: yuan
| Name of subsidiary | Amount incurred in this period | Amount incurred in prior period | ||||||
| Operating income | Net profit | Total comprehensive income | Operating cash flow | Operating income | Net profit | Total comprehensive income | Operating cash flow | |
| AFIP | 59,439,003 | -4,006,527 | -4,006,527 | 11,629,017 | 116,672,300.80 | 6,010,906 | 6,010,906 | 7,318,097 |
| Indomita Wine | 80,158,645 | -528,407 | -6,000,876 | 14,619,452 | 76,726,600 | -5,893,708 | 893,680 | 13,656,192 |
10.2 Transactions where share of owner’s equities in a subsidiary changes and the subsidiaryis still controlled
10.2.1 Explanation of changes in share of owner’s equities in a subsidiaryThis Company has acquired 1.5% of the minority shareholders’ equity in the subsidiary AustraliaKilikanoon Estate in this period, with a transfer price of 1,883,538 yuan. After the completion ofacquisition, this Company holds 99% equity in Australia Kilikanoon Estate.
10.2.2 Impact of transactions on minority equity and owner’s equities attributable to theparent company
| Items | Australia Kilikanoon Estate |
| Acquirement cost/disposal consideration | |
| -- Cash | 1,883,538 |
| -- Fair value of non-cash assets | |
| Total acquirement cost/disposal consideration | 1,883,538 |
| Minus: Net asset share of subsidiaries calculated based on the proportion of equity acquirement/disposal | 1,102,655 |
| Difference | 780,883 |
| Including: Adjustment of capital reserves | 780,883 |
| Adjustment of surplus reserves | |
| Adjustment of undistributed profits |
10.3 Equity in joint ventures or associates
Summary financial information of unimportant joint ventures and associates
Unit: yuan
| Ending balance / amount incurred in this period | Beginning balance / amount incurred in prior period | |
| Joint ventures: | -- | -- |
| Total book value of investment | 35,144,523 | 37,018,893 |
| Total of the following items calculated according to the shareholding ratio | ||
| -- Net profit | -1,874,370 | -1,124,340 |
| -- Other comprehensive income | ||
| -- Total comprehensive income | -1,874,370 | -1,124,340 |
| Associates: | ||
| Total book value of investment | 1,209,005 | 1,266,727 |
| Total of the following items calculated according to the shareholding ratio |
-- Net profit
| -- Net profit | -57,722 | 191,752 |
| -- Other comprehensive income | ||
| -- Total comprehensive income | -57,722 | 191,752 |
11. Risks related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in thenormal course of the Group’s operations:
- Credit risk- Liquidity risk- Interest rate risk- Foreign currency risk
The following mainly presents information about the Group’s exposure to each of the aboverisks and their sources, their changes during the year, and the Group’s objectives, policies andprocesses for measuring and managing risks, and their changes during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use offinancial instruments and to mitigate the adverse effects that the risks of financial instrumentshave on the Group’s financial performance. Based on such objectives, the Group’s riskmanagement policies are established to identify and analyze the risks faced by the Group, toset appropriate risk limits and controls, and to monitor risks and adherence to limits. Riskmanagement policies and systems are reviewed regularly to reflect changes in marketconditions and the Group’s activities.
11.1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation. The Group’s credit risk is primarilyattributable to cash at bank, receivables, debt investments and derivative financial instrumentsentered into for hedging purposes. Exposure to these credit risks are monitored by managementon an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does notexpect that these financial institutions may default and cause losses to the Group.
As at June 30, 2024, the Group’s maximum exposure to credit risk which will cause a financialloss to the Group due to failure to discharge an obligation by the counterparties.
In order to minimize the credit risk, the Group has adopted a policy to ensure that all salescustomers have good credit records. According to the policy of the Group, credit review isrequired for clients who require credit transactions. In addition, the Group continuouslymonitors the balance of account receivable to ensure there’s no exposure to significant bad
debt risks. For transactions that are not denominated in the functional currency of the relevantoperating unit, the Group does not offer credit terms without the specific approval of theDepartment of Credit Control in the Group. In addition, the Group reviews the recoverableamount of each individual trade debt at each balance sheet date to ensure that adequateimpairment losses are made for irrecoverable amounts. In this regard, the management of theGroup considers that the Group's credit risk is significantly reduced.
Since the Group trades only with recognized and creditworthy third parties, there is norequirement for collateral. Concentrations of credit risk are managed by customer/counterparty,by geographical region and by industry sector. As at June 30, 2024, 28.1% of the Group tradereceivables are due from top five customers (December 31, 2023: 49%). There is no collateralor other credit enhancement on the balance of the trade receivables of the Group.
11.2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations thatare settled by delivering cash or another financial asset. The Group and its individualsubsidiaries are responsible for their own cash management, including short-term investmentof cash surpluses and the raising of loans to cover expected cash demands (subject to approvalby the Group’s board when the borrowings exceed certain predetermined levels). The Group’spolicy is to regularly monitor its liquidity requirements and its compliance with lendingcovenants, to ensure that it maintains sufficient reserves of cash, readily realizable marketablesecurities and adequate committed lines of funding from major financial institutions to meet itsliquidity requirements in the short and longer term.
11.3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group tocash flow interest rate risk and fair value interest risk, respectively. The Group determines theappropriate weightings of the fixed and floating rate interest-bearing instruments based on thecurrent market conditions and performs regular reviews and monitoring to achieve anappropriate mix of fixed and floating rate exposure.
(1) As at June 30, 2024, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: yuan
| Item | June 30, 2024 | December 31, 2023 | ||
| Effective interest rate | Amounts | Effective interest rate | Amounts | |
| Financial assets | ||||
| - Monetary capital | 1.75%-2.25% | 87,200,000 | 1.45% - 2.25% | 579,200,000 |
| Financial liabilities | ? | ? | ||
| - Short-term loans | 5.9% - 6.43% | -96,609,764 | 6.83%~7.30% | -96,562,141 |
| - Long-term loans (including the portion due within one year) | 3.90% - 5.90% | -93,803,175 | 1.50% - 3.28% | -5,860,499 |
Item
| Item | June 30, 2024 | December 31, 2023 | ||
| Effective interest rate | Amounts | Effective interest rate | Amounts | |
| - Lease liabilities (including the portion due within one year) | 4.65% | -92,215,196 | 4.65% | -105,051,460 |
| Total | -195,428,135 | ? | 371,725,900 | |
Variable rate instruments:
Unit: yuan
| Item | June 30, 2024 | December 31, 2023 | ||
| Effective interest rate | Amounts | Effective interest rate | Amounts | |
| Financial assets | ||||
| - Monetary capital | 0.20% - 1.45% | 1,572,455,873 | 0.20% - 1.61% | 1,638,418,696 |
| Financial liabilities | ||||
| - Short-term loans | 1-year LPR-0.005 | -100,000,000 | ||
| - Short-term loans | BBSW (3mths)+1.15% | -48,654,201 | 1.81% ~ 2.54% | -23,272,320 |
| - Short-term loans | 4.35%-5.4% | -56,793,558 | 3.90% ~ 6.95% | -145,146,984 |
| - Long-term loans (including the portion due within one year) | 2.00% ~ 7.59% | -119,266,812 | ||
| Total | 1,467,008,114 | 1,250,732,580 | ||
(2) Sensitivity analysis
Management of the Group believes interest rate risk on bank deposit is not significant,therefore does not disclose sensitivity analysis for interest rate risk.
As at June 30, 2024, based on assumptions above, it is estimated that a general increase of 50basis points in interest rates, with all other variables held constant, would decrease the Group’sequity by RMB197,175 yuan (2023: RMB 1,453,823 yuan), and net profit by RMB 197,175yuan (2023: RMB 1,453,823 yuan).
The sensitivity analysis above indicates the instantaneous change in the net profit and equitythat would arise assuming that the change in interest rates had occurred at the balance sheetdate and had been applied to re-measure those financial instruments held by the Group whichexpose the Group to fair value interest rate risk at the balance sheet date. In respect of theexposure to cash flow interest rate risk arising from floating rate non-derivative instrumentsheld by the Group at the balance sheet date, the impact on the net profit and equity is estimatedas an annualized impact on interest expense or income of such a change in interest rates.
11.4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loansdenominated in foreign currencies other than the functional currency, the Group ensures that itsnet exposure is kept to an acceptable level by buying or selling foreign currencies at spot rateswhen necessary to address short-term imbalances.
(1) As at June 30, 2024, the Group’s exposure to currency risk arising from recognised assetsor liabilities denominated in foreign currencies is presented in the following tables. Forpresentation purposes, the amounts of the exposure are shown in Renminbi, translated usingthe spot rate at the balance sheet date. Differences resulting from the translation of thefinancial statements denominated in foreign currency are excluded.
Unit: yuan
| Item | June 30, 2024 | December 31, 2023 | ||
| Balance at foreign currency | Balance at RMB equivalent | Balance at foreign currency | Balance at RMB equivalent | |
| Monetary capital | 47,232,240 | 2,184,951 | ||
| - USD | 480,399 | 3,423,708 | 308,229 | 2,184,232 |
| - EUR | 67 | 513 | 67 | 523 |
| - HKD | 48,003,527 | 43,808,019 | 217 | 196 |
| Short-term loans | 97,102,650 | 96,562,141 | ||
| - USD | 13,625,000 | 97,102,650 | 13,625,000 | 96,562,141 |
(2) Sensitivity analysis
Assuming all other risk variables remained constant, a 5% strengthening of the Renminbiagainst the US dollar and Euro at June 30, 2024 would have impact on the Group’s equity andnet profit by the amount shown below, whose effect is in Renminbi and translated using thespot rate at the year-end date:
Unit: yuan
| Item | Equity | Net profit |
| June 30, 2024 | ||
| USD | 4,683,947 | 4,683,947 |
| EUR | -26 | -26 |
| HKD | -2,190,401 | -2,190,401 |
| Total | 2,493,520 | 2,493,520 |
| December 31, 2023 | ||
| USD | 3,539,172 | 3,539,172 |
| EUR | -20 | -20 |
| HKD | -7 | -7 |
| Total | 3,539,145 | 3,539,145 |
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30, 2024would have had the equal but opposite effect to the amounts shown above, on the basis that allother variables remained constant.
12. Fair value disclosure
All financial assets and financial liabilities held by the Group are carried at amounts notmaterially different from their fair value at June 30, 2024.
13. Related parties and related transactions
13.1 Particulars of the parent company of the Company
| Name of parent company | Registration place | Business nature | Registered capital | Proportion of shareholding of the parent company in the Company | Proportion of voting powers of the parent company in the Company |
| Changyu Group | Yantai City | Manufacturing industry | 50,000,000 | 49.9% | 49.9% |
From January to June 2024, there was no fluctuation in the registered capital of the parent companyand its share in equity interest and voting right.
13.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 10.
13.3 Information about joint ventures and associates of the CompanyOther joint ventures and associates that have related party transactions with the Group during thisperiod or that formed balance when having related party transactions with the Group during theprior period are as follows:
| Name of joint ventures and associates | Relationship with the Company |
| L&M Holdings | Joint venture of the Group |
| Shanghai Yufeng Brand Management Co., Ltd. (“Shanghai Yufeng”) | Associates of the Group |
| Yantai Guolong Wine Industry Co., Ltd. (“Yantai Guolong”) | Associates of the Group |
13.4 Particulars of other related parties
| Name of other related parties | Relationship between other related parties and the Company |
| Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) | A company controlled by the same parent company |
| Yantai Zhongya Zhibao Pharmaceutical Co., Ltd. (“Zhongya Zhibao”) | Appointment of directors, supervisors and senior |
Name of other related parties
| Name of other related parties | Relationship between other related parties and the Company |
| executives of the Group | |
| Societe Civile Argricole Du Chateau De Mirefleurs (“French Mirefleurs”) | Subsidiaries of the joint venture |
| CHATEAU DE LIVERSAN (“LIVERSAN”) | Subsidiaries of the joint venture |
13.5 Related transactions
13.5.1 Related transactions of purchasing and selling goods and providing and receivingservicesList of purchasing goods/receiving services
Unit: yuan
| Related parties | Related transactions | Amount incurred in this period | Amount incurred in prior period |
| God Horse Packing | Purchasing goods | 34,253,399 | 40,209,713 |
| Zhongya Zhibao | Purchasing goods | 13,392 | 13,162 |
| French Mirefleurs | Purchasing goods | 4,472,158 |
List of selling goods/providing services
Unit: yuan
| Related parties | Related transactions | Amount incurred in this period | Amount incurred in prior period |
| Zhongya Zhibao | Purchasing goods | 2,424,638 | 1,929,485 |
| God Horse Packing | Purchasing goods | 34,593 | 7,414 |
| Shanghai Yufeng | Purchasing goods | 950,113 | 190,498 |
| Yantai Guolong | Purchasing goods | 12,309,013 |
The price of transactions between the Group and the related parties are based on the negotiatedprice.
13.5.2 Related trusteeship/contracting and mandatory administration/outsourcingNil
13.5.3 Leasing with related parties
The Group as a lessor:
Unit: yuan
Name of the lessee
| Name of the lessee | Type of leased assets | Rental income recognized in this period | Rental income recognized in prior period |
| God Horse Packing | Office building and plant | 774,705 | 774,705 |
| Zhongya Zhibao | Office building | 481,905 | 295,238 |
The Group as a lessee:
Unit: yuan
| Name of the lessor | Type of leased assets | Rental expenses for short-term leases and leases of low-value assets of simplified treatment (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Rent paid | Interest expenses on lease liabilities assumed | Right-of-use assets increased | |||||
| Amount incurred in this period | Amount incurred in prior period | Amount incurred in this period | Amount incurred in prior period | Amount incurred in this period | Amount incurred in prior period | Amount incurred in this period | Amount incurred in prior period | Amount incurred in this period | Amount incurred in prior period | ||
| Changyu Group | Office building, plant, commercial building | 7,480,362 | 7,480,362 | 490,777 | 1,103,983 | ||||||
13.5.4 Related guarantee
Nil
13.5.5 Inter-bank borrowing and lending of related parties
Nil
13.5.6 Asset transfer and debt recombination of related parties
Nil
13.5.7 Other related transactions
Unit: yuan
| Related party | Item | Amount incurred in this period | Amount incurred in prior period |
| Changyu Group | Trademark use fee | 7,858,547 | 11,320,305 |
The price of transactions between the Group and the related parties are based on thenegotiated price.
13.6 Accounts receivable and payable of the related parties
13.6.1 Accounts receivable
Unit: yuan
| Item | Related parties | Ending balance | Beginning balance | ||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Accounts receivable | Zhongya Zhibao | 2,008,642 | 1,920 | 1,476,262 | 2,670 |
| Accounts receivable | Shanghai Yufeng | 2,364,318 | 2,260 | 2,925,045 | 5,290 |
| Prepayment | French Mirefleurs | 2,115,474 | 6,642,165 | ||
| Prepayment | LIVERSAN | 478,090 | |||
13.6.2 Accounts payable
Unit: yuan
| Item | Related parties | Ending book balance | Beginning book balance |
| Accounts payable | God Horse Packing | 19,592,101 | 27,358,723 |
| Accounts payable | Zhongya Zhibao | 2,066 | |
| Liabilities of contracts | Yantai Guolong | 930,928 | 14,840,000 |
| Other payable | God Horse Packing | 400,000 | |
| Other payable | Changyu Group | 7,858,547 | 27,515,798 |
| Other payable | Zhongya Zhibao | 1,664,860 |
14. Share-based payment
14.1 Overall situation of share-based payment
According to the resolution of 2022 Annual General Meeting of Shareholders held by theGroup on May 26, 2023, and the approved Proposal on 2023 Restricted Stock Incentive Plan(Draft) of the Company and Its Abstract and Proposal on Requesting the General Meeting ofShareholders to Authorize the Board of Directors to Handle Matters Related to 2023Restricted Stock Incentive Plan of the Company, and the Proposal on Adjusting RelevantMatters of 2023 Restricted Stock Incentive Plan and the Proposal on Granting RestrictedStocks to Incentive Objects of 2023 Restricted Stock Incentive Plan, which were reviewed andapproved at the first 2023 extraordinary board meeting held on June 26, 2023, the Group hasdetermined June 26, 2023 as the grant date to grant 6,850,000 restricted stocks to 204incentive objects at a grant price of 15.24 yuan per stock. A total of 203 incentive objects inthis Group actually subscribed for 6,785,559 restricted stocks, with a grant price of 15.24yuan per stock.
All restricted stocks granted to incentive objects are subject to different lock-up periods,which are 12 months, 24 months, and 36 months respectively from the completion of grantregistration of restricted stocks granted to incentive objects. The restricted stocks granted toincentive objects under this incentive plan shall not be transferred, used as collateral, or usedto repay debts during the lock-up period. All restricted stocks granted to incentive objects willbe unlocked in three phases after 12 months from the grant date, with unlocking ratios of30%, 30%, and 40% for each phase. The corresponding unlocking dates are 1 year, 2 years,and 3 years from the grant date. The actual unlocking quantity shall be linked to the annualperformance evaluation.
When the performance of this Company meets corresponding conditions, the unlocking ratioof the above-mentioned restricted stocks for the current period is determined based on theoperating performance of the incentive object’s unit and the value contribution of theincentive object. If the unlocking conditions stipulated in this plan are not met, the incentiveobject shall not unlock restricted stocks in the current period, and the Company shallrepurchase them according to the grant price to incentive object.
The Group held its fourth 2024 extraordinary board meeting on July 22, 2024, and reviewedand approved the Proposal on Achievement of the First Lifting of Lock-up Period and Liftingof Lock-up Conditions for Company’s 2023 Restricted Stock Incentive Plan. According torelevant provisions of Management Measures for Equity Incentives of Listed Companies andthe Company’s 2023 Restricted Stock Incentive Plan (Draft) and 2023 Restricted StockIncentive Plan Implementation, Assessment, and Management Measures, the first lifting oflock-up period and lifting of lock-up conditions for the Company’s 2023 restricted stockincentive plan have been achieved.
The first lifting period of 2023 restricted stock incentive plan is “from the first trading day 12months after the completion of grant registration to the last trading day within 24 monthsfrom the completion of grant registration”. The lifting ratio is 30% of the total number ofrestricted stocks granted. The grant registration date of restricted stocks under the Company’s2023 restricted stock incentive plan is July 20, 2023. The first lock-up period expires on July20, 2024, and a total of 172 incentive objects have been lifted from the lock-up conditions.The number of restricted stocks that can be lifted is 1,720,495. A total of 425,666 restricted
stocks are repurchased and cancelled, including 157,790 that no longer meet the conditions ofthe Company’s 2023 restricted stock incentive plan, and 267,876 restricted stocks that cannotbe lifted from the first lock-up period due to personal assessment results.
14.2 Equity-settled share-based payments
Unit: yuan
| Method for determining the fair value of equity instruments on grant date | Restricted stock: stock price on grant date minus grant price |
| Basis for determining the number of exercisable equity instruments | Management’s best estimate |
| Reasons for significant differences between the current estimate and the prior estimate | |
| Accumulated amount of equity-settled share-based payments included in capital reserve | 55,881,950 |
| Total amount of expenses recognized as equity-settled share-based payments in this period | 25,146,195 |
15. Commitment and contingency
15.1 Significant commitment
Unit: yuan
| Item | Ending balance | Beginning balance |
| Making long-term asset commitments | 47,557,140 | 50,057,140 |
15.2 Contingency
As of the balance sheet date, the Group didn’t have any contingency to be disclosed.
16. Matters after balance sheet
16.1 Important non-adjusting events
On July 22, 2024, the board of directors of the Company has reviewed and approved theProposal on Achievement of the First Lifting of Lock-up Period and Lifting of Lock-upConditions for Company’s 2023 Restricted Stock Incentive Plan, as described in Note 14;and approved the Proposal on Repurchasing and Canceling Some Restricted Stocks inCompany’s 2023 Restricted Stock Incentive Plan and Adjusting Repurchase Price, aswell as Proposal on Changing and Revising the Registered Capital. 425,666 restrictedstocks were repurchased and cancelled. After the restricted stocks granted to theincentive objects have completed the share registration, the Company implemented the2023 annual equity distribution. The board of directors has adjusted the repurchase priceof the restricted stocks that have not been lift from 2023 restricted stock incentive planaccording to the provisions of Incentive Plan (Draft). The adjusted repurchase price ofthe restricted stocks that have not been lift from 2023 restricted stock incentive plan is
14.74 yuan per share. After the cancellation of the above-mentioned restricted stocks,the Company will change its registered capital. The total share capital of the Companywill be changed from 692,249,559 shares to 691,823,893 shares, and the registered
capital will be changed from 692,249,559 yuan to 691,823,893 yuan.
17. Other important matters
Nil
18. Notes on major items in financial statements of the parent company
18.1 Accounts receivable
18.1.1 Disclosed by age
Unit: yuan
| Age | Ending balance | Beginning balance |
| Within 1 year (including 1 year) | 1,261,514 | 5,189,894 |
| 1-2 years | ||
| 2-3 years | ||
| More than 3 years | ||
| Total | 1,261,514 | 5,189,894 |
18.1.2 Disclosed by classification of bad debt provision methods
Unit: yuan
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Bad-debt provision | Book value | Book balance | Bad-debt provision | Book value | |||||
| Amount | Proportion | Amount | Proportion of accrual | Amount | Proportion | Amount | Proportion of accrual | |||
| Accounts receivable with bad-debt provision accrued on a single item basis | ||||||||||
| Accounts receivable with bad-debt provision accrued on a combined basis | 1,261,514 | 100% | 1,262 | 0.10% | 1,260,252 | 5,189,894 | 100% | 5,189,894 | ||
| Total | 1,261,514 | 100% | 1,262 | 0.10% | 1,260,252 | 5,189,894 | 100% | 5,189,894 | ||
Particulars of provision for bad debts accrued in this period:
Unit: yuan
| Category | Beginning balance | Change amount in this period | Ending balance | ||
| Accrued | Withdrawn or transferred back | Cancelled after verification | |||
| Accounts receivable with bad-debt provision accrued on a single item basis | |||||
| Bad-debt provision | 1,262 | 1,262 | |||
Category
| Category | Beginning balance | Change amount in this period | Ending balance | ||
| Accrued | Withdrawn or transferred back | Cancelled after verification | |||
| accrued on a combined basis | |||||
| Total | 1,262 | 1,262 | |||
18.1.3 Accounts receivable actually cancelled after verification in this periodNil
18.1.4 Accounts receivable and contract assets collected by borrower of top 5 unitsranked by ending balance
Unit: yuan
| Unit | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion in the total ending balance of accounts receivable and contract assets | Ending balance of bad-debts provision of accounts receivable and impairment provision of contract assets |
| Zhongya Zhibao | 1,261,514 | 1,261,514 | 100% | 1,262 | |
| Total | 1,261,514 | 1,261,514 | 100% | 1,262 |
18.1.5 Accounts receivable derecognized due to transfer of financial assetsNil
18.1.6 Accounts receivable transferred and included in assets and liabilitiesNil
18.2 Other receivables
Unit: yuan
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividends receivable | 3,447,765 | |
| Other receivables | 503,677,802 | 576,949,997 |
| Total | 507,125,567 | 576,949,997 |
18.2.1 Dividends receivable
Unit: yuan
| Item (or the invested unit) | Ending balance | Beginning balance |
| Dividends receivable from subsidiaries | 3,447,765 |
Total
| Total | 3,447,765 |
18.2.2 Other receivables
18.2.2.1 Particulars of other receivables classified by nature
Unit: yuan
| Nature | Ending balance | Beginning balance |
| Accounts receivable from subsidiaries | 500,598,180 | 574,127,885 |
| Others | 3,079,622 | 2,822,112 |
| Total | 503,677,802 | 576,949,997 |
18.2.2.2 Disclosed by age
Unit: yuan
| Age | Ending balance | Beginning balance |
| Within 1 year (including 1 year) | 503,573,330 | 576,845,525 |
| 1-2 years | ||
| 2-3 years | ||
| More than 3 years | 104,472 | 104,472 |
| Total | 503,677,802 | 576,949,997 |
18.2.2.3 Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 yuan; and the provision forbad debts withdrawn or transferred back in this period was RMB 0 yuan
18.2.2.4 Other accounts receivable actually cancelled after verification in this period
Nil
18.2.2.5 Other accounts receivable collected by borrower of top 5 units ranked byending balance
Unit: yuan
| Unit | Nature of fund | Ending balance | Age | Percentage in total ending balance of other accounts receivable | Ending balance of provision for bad debts |
| Sales company | Accounts receivable from subsidiaries | 269,992,741 | Within 1 year | 53.60% | |
| Atrio Group | Accounts receivable from subsidiaries | 125,570,740 | Within 1 year | 24.90% | |
| Kilikanoon Estate | Accounts receivable from subsidiaries | 64,747,026 | Within 1 year | 12.90% | |
| Digital marketing | Accounts receivable from subsidiaries | 17,295,547 | Within 1 year | 3.40% |
Unit
| Unit | Nature of fund | Ending balance | Age | Percentage in total ending balance of other accounts receivable | Ending balance of provision for bad debts |
| Pioneer Wine Industry | Accounts receivable from subsidiaries | 14,190,123 | Within 1 year | 2.80% | |
| Total | 491,796,177 | 97.60% |
18.2.2.6 Accounts receivable related to governmental subsidy
Nil
18.2.2.7 Other accounts receivable derecognized due to transfer of financial assets
Nil
18.2.2.8 Other accounts receivable transferred and included in assets and liabilities
Nil
18.3 Long-term equity investment
Unit: yuan
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiaries | 7,713,682,308 | 42,274,055 | 7,671,408,253 | 7,690,772,693 | 42,274,055 | 7,648,498,638 |
| Investment in associated enterprises and joint ventures | ||||||
| Total | 7,713,682,308 | 42,274,055 | 7,671,408,253 | 7,690,772,693 | 42,274,055 | 7,648,498,638 |
18.3.1 Investment in subsidiaries
Unit: yuan
| Invested unit | Beginning balance (book value) | Beginning balance of impairment provision | Increase and decrease in this period | Ending balance (book value) | Ending balance of impairment provision | |||
| Increase in investment | Decrease in investment | Provision for impairment accrued | Others | |||||
| Kylin Packaging | 23,543,435 | 367,372 | 23,910,807 | |||||
| Changyu Chateau | 29,273,059 | 304,959 | 29,578,018 | |||||
| Pioneer International | 5,934,696 | 558,596 | 6,493,292 | |||||
| Ningxia Growing | 36,573,247 | 36,573,247 | ||||||
| National Wine | 2,000,000 | 2,000,000 | ||||||
| Icewine Valley | 63,431,494 | 244,217 | 63,675,711 | |||||
| AFIP | 588,633,661 | 244,217 | 588,877,878 | |||||
| Sales Company | 21,259,694 | 11,091,879 | 32,351,573 | |||||
Invested unit
| Invested unit | Beginning balance (book value) | Beginning balance of impairment provision | Increase and decrease in this period | Ending balance (book value) | Ending balance of impairment provision | |||
| Increase in investment | Decrease in investment | Provision for impairment accrued | Others | |||||
| Wine Sales | 5,333,190 | 833,190 | 6,166,380 | |||||
| Shanghai Marketing | 1,000,000 | 1,000,000 | ||||||
| Beijing Sales | 850,000 | 850,000 | ||||||
| Jingyang Wine | 900,000 | 900,000 | ||||||
| Ningxia Wine | 222,309,388 | 222,309,388 | ||||||
| Ningxia Chateau | 453,747,514 | 284,014 | 454,031,528 | |||||
| Chateau Tinlot | 212,039,586 | 212,039,586 | ||||||
| Shihezi Chateau | 812,303,784 | 284,014 | 812,587,798 | |||||
| Chang’an Chateau | 804,197,217 | 304,959 | 804,502,176 | |||||
| R&D Company | 3,290,230,714 | 1,324,269 | 3,291,554,983 | |||||
| Huanren Wine | 22,200,000 | 22,200,000 | ||||||
| Wine Sales Company | 5,102,210 | 58,384 | 5,160,594 | |||||
| Francs Champs | 236,025,404 | 236,025,404 | ||||||
| Marques del Atrio | 227,931,344 | 5,210,925 | 227,931,344 | 5,210,925 | ||||
| Indomita Wine | 274,248,114 | 274,248,114 | ||||||
| Australia Kilikanoon Estate | 92,212,509 | 37,063,130 | 1,883,538 | 94,096,047 | 37,063,130 | |||
| Digital Marketing | 1,186,121 | 186,121 | 1,372,242 | |||||
| Chateau Koya | 110,328,128 | 328,128 | 110,656,256 | |||||
| Weimeisi (Shanghai) | 7,910,985 | 7,910,985 | ||||||
| hangyu Cultural Tourism Company | 92,621,574 | 142,004 | 92,763,578 | |||||
| Development Zone Trading | 861,192 | 813,002 | 1,674,194 | |||||
| Penglai Wine Industry | 1,104,339 | 800,044 | 1,904,383 | |||||
| Longkou Sales | 1,611,286 | 1,261,955 | 2,873,241 | |||||
| Laizhou Sales | 84,916 | 84,916 | 169,832 | |||||
| Yantai Roullet Fransac | 244,217 | 244,217 | 488,434 | |||||
| Museum | 265,162 | 265,162 | 530,324 | |||||
| Window of Wine City | 470,134 | 470,134 | 940,268 | |||||
Invested unit
| Invested unit | Beginning balance (book value) | Beginning balance of impairment provision | Increase and decrease in this period | Ending balance (book value) | Ending balance of impairment provision | |||
| Increase in investment | Decrease in investment | Provision for impairment accrued | Others | |||||
| AFIP Tourism | 162,952 | 162,952 | 325,904 | |||||
| Meeting Center | 102,210 | 102,210 | 204,420 | |||||
| Ningxia Trading | 162,952 | 162,952 | 325,904 | |||||
| Christon Catering | 102,210 | 102,210 | 204,420 | |||||
| Total | 7,648,498,638 | 42,274,055 | 1,883,538 | 21,026,077 | 7,671,408,253 | 42,274,055 | ||
18.4 Operating income and operating cost
18.4.1 Details of operating income
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period | ||
| Income | Cost | Income | Cost | |
| Main business | 170,817,834 | 151,450,042 | 211,221,867 | 173,868,643 |
| Others businesses | 15,081,702 | 14,656,896 | 30,745,229 | 27,044,675 |
| Total | 185,899,536 | 166,106,938 | 241,967,096 | 200,913,318 |
| Including: Income from contracts | 184,420,307 | 164,861,107 | 240,897,153 | 200,209,954 |
| Income from house rents | 1,479,229 | 1,245,831 | 1,069,943 | 703,364 |
18.4.2 Situation of income and cost from contracts
Unit: yuan
| Contract classification | Operating income | Operating cost |
| Type of merchandise | ||
| - Alcoholic beverage | 170,817,834 | 151,450,042 |
| - Others | 13,602,473 | 13,411,065 |
| Classified by the time of merchandise transfer | ||
| - Revenue recognized at a point in time | 184,420,307 | 164,861,107 |
18.5 Investment income
Unit: yuan
| Item | Amount incurred in this period | Amount incurred in prior period |
| Income from long-term equity investment by cost method | 164,552,732 | 178,935,084 |
| Income from long-term equity investment by equity method | 54,934 | |
| Investment income from disposal of long-term equity investment | -29,910,000 | |
| Investment income of the financial assets measured at their fair values and the variation of which is recorded into the current profits and losses during the holding |
Item
| Item | Amount incurred in this period | Amount incurred in prior period |
| period | ||
| Investment income gained from disposal of the financial assets measured at their fair values and the variation of which is recorded into the current profits and losses | ||
| Investment income of held-to-maturity investment during the holding period | ||
| Investment income of financial assets held for sale during the holding period | ||
| Investment income gained from disposal of financial assets held for sale | ||
| Gains generated from the remaining equity remeasured as per fair value after the loss of control | ||
| Total | 164,552,732 | 149,080,018 |
19. Supplementary materials
19.1 List of non-current profits/losses in this period
Unit: yuan
| Item | Amount | Remark |
| Profits/losses on disposal of non-current assets | -95,670 |
Governmental subsidy included in the current profits/losses (excluding those closely related tothe enterprise business and enjoyed in accordance with the unified standard quota or ration ofthe state)
| 33,630,640 | ||
| Profits/losses on changes of fair value of financial assets and financial liabilities of non-financial business, and profits/losses from disposal of financial assets and financial liabilities, excluding effective hedging operations relevant to the normal business of the Company | ||
| Payment for use of funds by non-financial enterprises included in the current profits/losses | ||
| Profits/losses on entrusting other people to make investment or manage assets | ||
| Profits/losses on external entrusted loans | ||
| Asset impairment provision accrued due to force majeure such as natural disaster | ||
| Transfer-back of accounts receivable provision for impairment with single impairment test | ||
| Income obtained when the investment cost obtained by the enterprise from subsidiaries, joint-run business and joint venture is less than the fair value of the net identifiable assets obtained from the invested units when the investment is made | ||
| Current net profits/losses on subsidiaries acquired from a business combination under common control from the beginning to the consolidation date | ||
| Profits/losses on exchange of non-monetary assets | ||
| Profits/losses on debt restructuring | ||
| One-time expenses incurred by enterprises due to the discontinuation of related business activities, such as expenses for resettling employees, etc | ||
| Influence of the one-time adjustment of the current profits/losses in accordance with tax and accounting laws and regulations on the current profits/losses | ||
| One-time confirmation of share-based payment expenses due to cancellation or modification of equity incentive plan | ||
| For cash-settled share-based payment, profits/losses arising from changes in fair value of employee compensation payable after the exercise date | ||
| Profits/losses on fair value changes of investment real estate with fair value mode for follow-up measurement |
Item
| Item | Amount | Remark |
| Profits generated from transactions with unfair transaction price | ||
| Profits/losses on contingencies irrelated to the normal business of the Company | ||
| Trustee fee income from entrusted operation | ||
| Other non-operating income and expenditure besides the above items | 1,166,359 | |
| Other profits/losses conforming to the definition of non-recurrent profits/losses | ||
| Minus: Influenced amount of income tax | 8,371,006 | |
| Influenced amount of minority equity | 36,823 | |
| Total | 26,293,500 | -- |
19.2 Return on net assets and earnings per share
| Profit in reporting period | Weighted average return on net assets | Earnings per share | |
| Basic EPS (yuan/Share) | Diluted EPS (yuan/Share)） | ||
| Net profit attributable to common shareholders of the Company | 2.03% | 0.32 | 0.32 |
| Net profit attributable to common shareholders of the Company deducting non-recurrent profits/losses | 1.79% | 0.28 | 0.28 |
19.3 Accounting data difference under domestic and foreign accounting standard
19.3.1 Net profits & net assets difference disclosed in the financial report according tothe international accounting standard and Chinese accounting standard
Unit: yuan
| Net profits | Net assets | |||
| Amount incurred in this period | Amount incurred in prior period | Ending balance | Beginning balance | |
| In accordance with the Chinese accounting standard | 221,177,382 | 363,569,436 | 10,583,533,749 | 10,841,500,988 |
| Item & amount adjusted in accordance with the international accounting standard: | ||||
| In accordance with the international accounting standard | 221,177,382 | 363,569,436 | 10,583,533,749 | 10,841,500,988 |
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors August 22, 2024