2018 the Third Quarter Report of Yantai Changyu Pioneer Wine Co., Ltd.
Yantai Changyu Pioneer Wine Co. Ltd.
2018 the Third Quarter Report
2018-Final 04
October 2018
2018 the Third Quarter Report of Yantai Changyu Pioneer Wine Co., Ltd.
I. Important Notice
The board of directors，the board of supervisors，directors, supervisors & senior managersof the Company collectively and individually accept full responsibility for the truthfulness，
accuracy and completeness of the information contained in this report and confirm that to thebest of their knowledge and belief there are no unfaithful facts, significant omissions ormisleading statements.
All directors attended the meeting for deliberating this quarter report.
Mr. Zhou Hongjiang (Person in charge of the company) and Mr. Jiang Jianxun (Person incharge of accounting and accounting organ, also Financial Director) assure the truthfulness,accuracy and completeness of the financial statements in the quarter report.
II、Corporate Information
1. Key accounting data and financial indicators
Whether the Company makes retroactive adjustments or restates the accounting data of previousfiscal years.
□ Yes V No
| The end of the report period | The end of last year | More or less than last year (%) | |||
| Total assets (CNY) | 12,907,492,685 | 12,536,755,208 | 2.96% | ||
| Net Assets attributed to the shareholders of the listed company (CNY) | 9,340,814,814 | 8,906,342,299 | 4.88% | ||
| The report period | More or less than last year (%) | From beginning of year to end of report period | More or less than last year (%) | ||
| Business income (CNY) | 1,032,328,986 | 0.14% | 3,860,559,050 | 1.65% | |
| Net profit attributed to the shareholders of the listed company (CNY) | 133,916,250 | -8.35% | 769,753,655 | -5.69% | |
| Net profit attributed to the shareholders of the listed company after deducting the irregular profit and loss (CNY) | 110,520,695 | -20.39% | 717,199,414 | -9.27% | |
| Net cash flows from the operating activities (CNY) | -- | -- | 776,840,794 | -3.69% | |
| Basic earnings per share (CNY) | 0.20 | -4.76% | 1.12 | -5.88% | |
| Diluted earnings per share (CNY) | 0.20 | -4.76% | 1.12 | -5.88% | |
| Weighted average for earning rate of the net assets | 1.43% | -0.25% | 8.35% | -1.21% | |
Details of irregular profit and loss
V Yes □ No
Unit：CNY
| Item | From beginning of year to end of report period | Explanation |
| Gain on disposal of non-current assets, including the reversal of accrued impairment provision | -76,376 | |
| Government grants credited in profit and loss (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) | 66,841,126 | |
| Other non-operating income and expenses | 2,950,317 | |
| Less: Income tax effect | 17,083,755 |
| Minority interests effect(after-tax) | 77,071 | |
| Total | 52,554,241 | -- |
The reasons shall be made clear and definitely as to the irregular profit and loss that the Company has
defined by virtue of the Explanatory Announcement on Public Company’s Information Disclosure No.1
- Irregular Profit and Loss and as to regarding the irregular profit and loss as recurrent profit and loss as
specified in the Explanatory Announcement on Public Company’s Information Disclosure No.1 -
Irregular Profit and Loss.
□Available V Not available
There is no situation regarding the non-recurring profit and loss as defined and specified in the
Explanatory Announcement on Public Company’s Information Disclosure No.1 - Non-recurring
Profit and Loss as recurrent profit and loss.
2. The total number of shareholders and top 10 shareholders at the end of the report period1) The number of the common shareholders and preferred shareholders with recovered voting
power as well as the shareholding of top 10 shareholders
Unit: share
| Total number of common shareholders at the end of report period | 39,225 (20,581of Stock A and 18,644 of Stock B | Total number of preferred shareholders with recovered voting power at the end of report period | 0 | |||||
| The top 10 common shareholders | ||||||||
| Name of Shareholders | Character of shareholders | Percentage (%) | Shares held | Number of restricted shares | Pledged or frozen | |||
| Share status | Amount | |||||||
| YANTAI CHANGYU GROUP COMPANY LIMITED | Domestic non-state-owned legal person | 50.40% | 345,473,856 | 0 | -- | 0 | ||
| GAOLING FUND,L.P. | Foreign legal person | 3.08% | 21,090,219 | 0 | -- | 0 | ||
| CHINA SECURITIES FINANCE CORP | State-owned legal person | 2.25% | 15,440,794 | 0 | -- | 0 | ||
| BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | Foreign legal person | 2.22% | 15,241,826 | 0 | -- | 0 | ||
| SHENWAN HONGYUAN SECURITIES(HONGKONG) LIMITED | Foreign legal person | 1.27% | 8,685,618 | 0 | -- | 0 | ||
| TAIKANG LIFE INSURANCE COMPANY LIMITED – UNITED LINKED – INDUSTRIES ALLOCATION | Others | 1% | 6,887,535 | 0 | -- | 0 | ||
| FIDELITY PURITAN TRUST: FIDELITY SERIES INTRINSIC OPPORTUNITIES FUND | Foreign legal person | 0.89% | 6,100,762 | 0 | -- | 0 | ||
| TAIKANG LIFE INSURANCE COMPANY LIMITED --- | Others | 0.84% | 5,740,737 | 0 | -- | 0 | ||
| DIVIDEND ---PERSONAL INSURANCE DIVIDEND --- 019L---FH002SHEN | ||||||||||
| GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED | Foreign legal person | 0.73% | 5,038,107 | 0 | -- | 0 | ||||
| CENTRAL HUIJIN ASSET MANAGEMENT LTD. | State-owned legal person | 0.69% | 4,761,200 | |||||||
| The top 10 common shareholders with unrestricted shares | ||||||||||
| Name of Shareholders | Number of unrestricted shares held | Type of share | ||||||||
| Type of share | Amount | |||||||||
| YANTAI CHANGYU GROUP COMPANY LIMITED | 345,473,856 | A share | 345,473,856 | |||||||
| GAOLING FUND,L.P. | 21,090,219 | B share | 21,090,219 | |||||||
| CHINA SECURITIES FINANCE CORP | 15,440,794 | A share | 15,440,794 | |||||||
| BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | 15,241,826 | B share | 15,241,826 | |||||||
| SHENWAN HONGYUAN SECURITIES(HONGKONG) LIMITED | 8,685,618 | B share | 8,685,618 | |||||||
| TAIKANG LIFE INSURANCE COMPANY LIMITED – UNITED LINKED – INDUSTRIES ALLOCATION | 6,887,535 | A share | 6,887,535 | |||||||
| FIDELITY PURITAN TRUST: FIDELITY SERIES INTRINSIC OPPORTUNITIES FUND | 6,100,762 | B share | 6,100,762 | |||||||
| TAIKANG LIFE INSURANCE COMPANY LIMITED --- DIVIDEND ---PERSONAL INSURANCE DIVIDEND --- 019L ---FH002SHEN | 5,740,737 | A share | 5,740,737 | |||||||
| GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED | 5,038,107 | B share | 5,038,107 | |||||||
| CENTRAL HUIJIN ASSET MANAGEMENT LTD. | 4,761,200 | A share | 4,761,200 | |||||||
| The explanation for the associated relationship and accordant action of 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 common shareholders who involved in financing activities and stock trading business(if any) | No | |||||||||
Whether or not the Company’s top 10 common shareholders and top 10 common shareholders with
unrestricted shares promise to buy back trading during the report period
□ Yes √ No
There are no top 10 common shareholders and top 10 common shareholders with unrestricted sharesin the Company promise to buy back trading during the report period.
2) The total number of the preferred shareholders and top 10 preferred shareholders at the end of
the report period
□Available V Not available
III Major Issue
1. Great changes and reasons on main accountant data and financial index
√Available □Not available
Compared the end of the report period with the beginning of the year, accounts receivable decreasesby 17.8%, mainly due to the recovery of previous goods payment; advance payment increases by49.29%, mainly due to the growth of advance payment for packaging material; other accountreceivable decreases by 32.93%, mainly due to the recovery of partial cash deposit paid in earlierstage and investment amount of minority shareholders; other current assets increases by 48.53%,mainly due to the increase in input tax not deducted in this period; goodwill increases by 28.92%,
mainly due to the company’s acquisition of Kilikanoon in Australia; assets of deferred income tax
decreases by 15.65%, mainly due to the decrease in unrealized profit of inventory in the internaltransaction and wage payable; advance receipt decreases by 28.43%, mainly due to the decrease inobtainment of advance payment from distributors; tax payable decreases by 51.39%, mainly due tothe decrease in added-value tax payable and consumption tax payable; other accounts payableincreases by 26.74%, mainly due to the increase in advertising expense payable; non-currentliabilities due within one year increases by 42.29%, mainly due to the increase in long-term loandue within one year; other comprehensive income increases by 239.64%, mainly due to the increasein translation differences arising on translation of foreign currency financial statements.
Compared the period from the beginning of the year to the end of report period with the sameperiod of last year, financial expense increases by 14.93%, mainly due to the incorporation ofnewly-acquired overseas enterprise into the consolidation scope; other income increases by124.23%, mainly due to the increase in governmental subsidy; other cash received related tooperating activities increases by 44.64%, due to the increase in governmental subsidy; other cashreceived related to financing activities increases by 1704.52%, mainly due to the repeating of fixed
deposit pledged for the company’s long-term loan.
2. Analysis explanation of the major issue’s process, its influence and the solution
□Available V Not available
3. The commitments that the Company’s actual controllers, shareholders, related parties,
purchasers, the Company and other related parties do not implement completely exceedingthe time limit within report period
√available □not available
| Commitments | Commitment Party | Commitment Type | Commitment content | Commitment time | Commitment period | Implementation | |
| Commitments at share reform | - | － | |||||
| Commitments made in acquisition report or equity changes report | - | - | - | - | |||
| Commitments at asset restructuring | - | - | - | - | |||
| Commitments at the initial public offering or refinancing | Yantai Changyu Group Co., Ltd | Solve horizontal competition | Non-horizontal competition | 1997.05.18 | Permanent | Has been performing | |
| Yantai Changyu Group Co., Ltd | Clear the purpose of brand royalty | According to "Trademark License Contract", the Company will pay trademark royalty for the "Changyu"products of Yantai Changyu Group Co., Ltd every year, Yantai Changyu Group Co., Ltd will use trademark to advertise Changyu trademarks and the Contract products. | 1997.05.18 | Permanent | Has been performing | ||
| Equity incentive commitments | |||||||
| Commitments made to the minority shareholders of the Company | - | - | - | - | |||
| Commitment under timely implementation or not | Yes | ||||||
| For commitments that exceed the time limit and are not completed, specific reasons of not completing the implementation and the next step | No | ||||||
4. Forecast on the operating performance in the year of 2018Warning and explanation for the estimation on the possible loss of cumulative net profit in theperiod from the beginning of this year to the end of the next report period or the great changecomparing with same period of last year.
□Available V Not available
5. The situation of security investment
□Available V Not available
There is no security investment during the report period.
6. The situation of derivative investment
□Available V Not available
There is no derivative investment during the report period.
7. The activities registration form of receptions, communication and interview etc. during thereport period
□Available V Not available
There are no activities of receptions, communication and interview etc. during the report period.
8. The Company’s receptions, studies, communications and visits
?Available □Not available
| Reception Time | Reception mode | Reception object type | Basic information index of investigate and survey |
| 2018.07.02 | Field survey | Institution | < Investor Relations Activity Record of Yantai Changyu Pioneer Wine Company Limited > in ‘Investor Relations Information on CNINFO website (www.cninfo.com.cn) |
9. The situation of illegal external guarantee
□Available V Not available
There is no illegal external guarantee during the report period.
10. The situation of non-operating fund occupation of controlling shareholders and relatedparties
□Available V Not available
There is no non-operating fund occupation of controlling shareholders and related parties during thereport period.
Ⅳ Financial Statements
1. Financial statements
1) Consolidated balance sheet
Yantai Changyu Pioneer Wine Co., Ltd. Unit: CNY
| ITEM | At 30 September 2018 | At 31 December 2017 |
| Current assets： | ||
| Monetary fund | 1,507,762,428 | 1,402,522,509 |
| Financial assets which are measured by fair value and which changes are recorded in current profit and loss | ||
| Derivative financial liability | ||
| Notes receivable & Account receivable | 440,502,614 | 508,593,173 |
| Incl: Notes receivable | 223,654,454 | 244,796,818 |
| Account receivable | 216,848,160 | 263,796,355 |
| Advance payment | 3,609,668 | 2,417,931 |
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 12,729,544 | 18,978,422 |
| Inventories | 2,556,577,030 | 2,473,614,046 |
| Assets held for sale | 2,000,197 | 2,000,197 |
| Non-current assets due within one year | ||
| Other current assets | 342,839,401 | 230,822,759 |
| Total current assets | 4,866,020,882 | 4,638,949,037 |
| Non-current assets： | ||
| Financial assets for sale | 480,666 | 467,251 |
| Investment held to expiration | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Real estate for investment | 17,582,074 | 18,467,989 |
| Fixed assets | 5,478,944,494 | 5,329,083,969 |
| Construction in progress | 1,028,608,983 | 1,026,141,569 |
| Project material | ||
| Liquidation of fixed assets | ||
| Biological assets for production | 203,171,240 | 201,929,888 |
| Oil and gas assets | ||
| Intangible assets | 662,739,630 | 655,448,897 |
| Development expenditure | ||
| Goodwill | 165,199,111 | 128,135,981 |
| Long-term deferred expenses | 224,856,962 | 230,009,231 |
| Assets of deferred income tax | 259,888,643 | 308,121,396 |
| Other non-current assets | ||
| Total non-current assets | 8,041,471,803 | 7,897,806,171 |
| Total assets | 12,907,492,685 | 12,536,755,208 |
| Current liabilities: | ||
| Short-term loan | 753,501,353 | 714,434,286 |
| Financial liabilities which are measured by fair value and which changes are recorded in current profit and loss | ||
| Derivative financial liability | ||
| Notes payable & Accounts payable | 600,341,636 | 666,442,879 |
| Advance receipt | 251,147,961 | 350,894,156 |
| Wage payable | 173,784,498 | 210,824,234 |
| Tax payable | 70,524,280 | 145,094,156 |
| Interest payable | ||
| Dividend payable | ||
| Deferred income | 15,437,490 | 16,878,199 |
| Other accounts payable | 765,177,765 | 603,735,569 |
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 157,878,438 | 110,954,827 |
| Other current liabilities | ||
| Total current liabilities | 2,787,793,421 | 2,819,258,306 |
| Non-current liabilities： | ||
| Long-term loan | 134,684,845 | 156,125,854 |
| Bond payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Long-term accounts payable | 235,000,000 | 259,000,000 |
| Long-term wages payable | ||
| Special accounts payable | ||
| Deferred income | 88,516,800 | 92,918,855 |
| Liabilities of deferred income tax | 24,085,949 | 24,264,203 |
| Other non-current liabilities | 6,848,846 | 7,209,312 |
| Total non-current liabilities | 489,136,440 | 539,518,224 |
| Total liabilities | 3,276,929,861 | 3,358,776,530 |
| Shareholder rights and interests： | ||
| Share capital | 685,464,000 | 685,464,000 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 565,955,441 | 565,955,441 |
| Less: Inventory shares | ||
| Other comprehensive Income | 10,560,100 | 3,109,240 |
| Reasonable reserve | ||
| Surplus reserve | 342,732,000 | 342,732,000 |
| Provision of general risk | ||
| Retained profit | 7,736,103,273 | 7,309,081,618 |
| Total owner’s equity attributable to parent Company | 9,340,814,814 | 8,906,342,299 |
| Minority interests | 289,748,010 | 271,636,379 |
| Total owner's equity | 9,630,562,824 | 9,177,978,678 |
| Total liabilities and owner's equity | 12,907,492,685 | 12,536,755,208 |
Legal representative: Zhou Hongjiang; Person in charge of accounting : Jiang Jianxun; Person in charge of accounting organ: JiangJianxun
2) Balance sheet of parent company
Unit: CNY
| Item | At 30 September 2018 | At 31 December 2017 |
| Current assets： | ||
| Monetary fund | 621,340,991 | 559,174,466 |
| Financial assets which are measured by fair value and which changes are recorded in current profit and loss | ||
| Derivative financial liability | ||
| Notes receivable & Account receivable | 56,202,850 | 49,450,536 |
| Incl: Notes receivable | 48,760,986 | 41,645,203 |
| Account receivable | 7,441,864 | 7,805,333 |
| Advance payment | 162,657 | 99,673 |
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 437,667,412 | 999,846,643 |
| Inventories | 360,755,648 | 348,042,053 |
| Assets held for sale | 2,000,197 | 2,000,197 |
| Non-current assets due within one year | ||
| Other current assets | 32,703,007 | 29,706,058 |
| Total current assets | 1,510,832,762 | 1,988,319,626 |
| Non-current assets： | ||
| Financial assets for sale | ||
| Investment held to expiration | ||
| Long-term account receivable | ||
| Long-term equity investment | 7,420,803,069 | 4,511,202,204 |
| Real estate for investment | 17,582,074 | 18,467,989 |
| fixed assets | 269,614,276 | 288,150,901 |
| Construction in progress | 13,918,231 | 6,756,349 |
| Project material | ||
| Liquidation of fixed assets | ||
| Biological assets for production | 119,610,212 | 119,572,539 |
| Oil and gas assets | ||
| Intangible assets | 67,838,855 | 69,623,219 |
| Development expenditure | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Assets of deferred income tax | 23,790,555 | 28,787,907 |
| Other non-current assets | 932,200,000 | 3,718,674,166 |
| Total non-current assets | 8,865,357,272 | 8,761,235,274 |
| Total assets | 10,376,190,034 | 10,749,554,900 |
| Current liabilities: |
| Short-term loan | 200,000,000 | 600,000,000 |
| Financial liabilities which are measured by fair value and which changes are recorded in current profit and loss | ||
| Derivative financial liability | ||
| Notes payable & Accounts payable | 88,550,852 | 97,833,124 |
| Advance receipt | 6,000,000 | 6,000,000 |
| Wage payable | 59,650,846 | 70,108,076 |
| Tax payable | 3,681,742 | 14,569,690 |
| Interest payable | ||
| Dividend payable | ||
| Deferred income | 3,563,054 | 3,953,054 |
| Other accounts payable | 561,807,771 | 545,365,672 |
| Liabilities held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 923,254,265 | 1,337,829,616 |
| Non-current liabilities： | ||
| Long-term loan | - | |
| Bond payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Long-term accounts payable | ||
| Long-term wages payable | ||
| Special accounts payable | ||
| Deferred income | 10,523,269 | 12,970,473 |
| Liabilities of deferred income tax | ||
| Other non-current liabilities | 1,935,802 | 2,235,802 |
| Total non-current liabilities | 12,459,071 | 15,206,275 |
| Total liabilities | 935,713,336 | 1,353,035,891 |
| Shareholder rights and interests： | ||
| Share capital | 685,464,000 | 685,464,000 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 557,222,454 | 557,222,454 |
| Less: Inventory shares | ||
| Other comprehensive Income | ||
| Reasonable reserve | ||
| Surplus reserve | 342,732,000 | 342,732,000 |
| Retained profit | 7,855,058,244 | 7,811,100,555 |
| Total owner's equity | 9,440,476,698 | 9,396,519,009 |
| Total liabilities and owner's equity | 10,376,190,034 | 10,749,554,900 |
3) Consolidated profit statement for this report period
Unit: CNY
| Item | Three months ended 30 September 2018 | Three months ended 30 September 2017 |
| I. Total Operating Revenue | 1,032,328,986 | 1,030,899,920 |
| Incl: Operating Revenue | 1,032,328,986 | 1,030,899,920 |
| II. Total Operating Cost | 881,486,983 | 849,810,998 |
| Incl:Operating Cost | 394,965,077 | 329,547,531 |
| Tax and levies on operations | 45,258,725 | 55,781,211 |
| Selling expenses | 357,743,961 | 387,624,972 |
| Administrative expenses | 69,715,725 | 69,196,400 |
| Research & Development expenses | 1,407,641 | 1,142,752 |
| Finance expenses | 11,864,743 | 7,139,053 |
| Incl: Interest expenses | 6,703,768 | 7,873,529 |
| Interest income | 1,849,137 | 3,877,588 |
| Impairment losses of Assets | 531,111 | -620,921 |
| Add：Gains on increase in fair value of assets | ||
| Investment income | ||
| Incl. Investment income from affiliates | ||
| Gains on assets disposal | -170,334 | -278,016 |
| Other income | 28,858,248 | 29,809,744 |
| III.Operating profit | 179,529,917 | 210,620,650 |
| Add：Non-operating income | 2,775,336 | -18,081,069 |
| Including: Disposal earnings of non-current asset | ||
| Less：Non-operating expenses | 439,049 | 157,492 |
| Incl. Losses from disposal of non-current assets | ||
| IV.Total Profit before Taxation | 181,866,204 | 192,382,089 |
| Less：Income tax | 47,969,306 | 44,950,415 |
| V.Net profit after Taxation | 133,896,898 | 147,431,674 |
| (I) Going concern net profit | 133,896,898 | 147,431,674 |
| (II) Discontinued operation net profit | ||
| Net profit attributable to Parent company | 133,916,250 | 146,115,408 |
| Minority interest income | -19,352 | 1,316,266 |
| VI. Net after-tax of other comprehensive income | 19,757,123 | 7,625,587 |
| Net after-tax of other comprehensive income attributable to owners of parent company | 16,681,680 | 6,468,774 |
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | - | - |
| 1. Changes as a result of re-measurement of net defined benefit plan liability or asset | - | - |
| 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | - | - |
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | 16,681,680 | 6,468,774 |
| 1. Share of the other comprehensive income of the investee accounted for using equity method which | - | - |
| will be reclassified subsequently to profit or loss | ||
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | - | - |
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | - | - |
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | - | - |
| 5. Translation differences arising on translation of foreign currency financial statements | 16,681,680 | 6,468,774 |
| 6. Other | - | - |
| Net after-tax of other comprehensive income attributable to minority shareholders | 3,075,443 | 1,156,813 |
| VII. Total comprehensive income | 153,654,021 | 155,057,261 |
| Total comprehensive income attributable to owners of parent Company | 150,597,930 | 152,584,182 |
| Total comprehensive income attributable to minority shareholders | 3,056,091 | 2,473,079 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.20 | 0.21 |
| (II) Diluted earnings per share | 0.20 | 0.21 |
During this report period, the issue relates to company consolidation under common control, consolidated party completes net profitamount of CNY 0 before being consolidated, and consolidated party completes net profit amount of CNY 0 in the same period of lastyear.Legal representative: Zhou Hongjiang; Person in charge of accounting: Jiang Jianxun; Person in charge of accounting organ:
Jiang Jianxun
4) Profit statement of parent company for this report period
Unit: CNY
| Item | Three months ended 30 September 2018 | Three months ended 30 September 2017 |
| I. Sales Revenue | 185,358,483 | 216,615,411 |
| less：Cost of sales | 163,922,392 | 182,660,783 |
| Tax and levies on operations | 9,009,093 | 9,293,101 |
| Selling and distribution expenses | ||
| Administrative expenses | 21,447,867 | 23,115,442 |
| Research & Development expenses | 239,075 | 227,673 |
| Finance expenses | 6,173,386 | -6,419,161 |
| Incl: Interest expenses | 2,223,333 | 5,800,616 |
| Interest income | 781,752 | 13,540,002 |
| Impairment losses of Assets | ||
| Add：Gains on increase in fair value of assets | ||
| Investment income | 79,850,000 | 212,738,266 |
| Incl. Investment income from affiliates | ||
| Gains on assets disposal | -528 | -457,457 |
| Other income | 1,160,677 | 1,668,380 |
| II. Operating profit | 65,576,819 | 221,686,762 |
| Add：Non-operating income | 812,444 | -716,495 |
| Including: Disposal earnings of non-current asset | ||
| Less：Non-operating expenses | 299,472 | 18,685 |
| Incl. Losses from disposal of non-current assets | ||
| III. Total Profit before Taxation | 66,089,791 | 220,951,582 |
| Less：Income tax | -1,834,728 | 1,879,991 |
| IV.Net profit after Taxation | 67,924,519 | 219,071,591 |
| (I) Going concern net profit | 67,924,519 | 219,071,591 |
| (II) Discontinued operation net profit | ||
| V. Net after-tax of other comprehensive income | - | |
| Net after-tax of other comprehensive income attributable to owners of parent company | - | |
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | - | |
| 1. Changes as a result of re-measurement of net defined benefit plan liability or asset | - | |
| 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | - | |
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | - | |
| 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | - |
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | - | |
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | - | |
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | - | |
| 5. Translation differences arising on translation of foreign currency financial statements | - | |
| 6. Other | - | |
| VI. Total comprehensive income | 67,924,519 | 219,071,591 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | 0.10 | 0.32 |
| (II) Diluted earnings per share | 0.10 | 0.32 |
5) Consolidated profit statement from the beginning of the year to the end of the report period
Unit: CNY
| Item | Nine months ended 30 September 2018 | Nine months ended 30 September 2017 |
| I. Total Operating Revenue | 3,860,559,050 | 3,797,998,117 |
| Incl: Operating Revenue | 3,860,559,050 | 3,797,998,117 |
| II. Total Operating Cost | 2,900,426,441 | 2,740,611,614 |
| Incl:Operating Cost | 1,369,522,369 | 1,255,301,664 |
| Tax and levies on operations | 210,534,976 | 216,255,209 |
| Selling expenses | 1,068,402,994 | 1,056,360,698 |
| Administrative expenses | 226,147,745 | 196,767,631 |
| Research and development expenses | 5,067,509 | 4,113,907 |
| Finance expenses | 24,950,685 | 18,287,002 |
| Incl: Interest expenses | 25,443,296 | 22,915,567 |
| Interest income | 9,095,007 | 8,726,754 |
| Impairment losses of Assets | -4,199,837 | -6,474,497 |
| Add：Other income | 66,841,126 | 29,809,744 |
| Investment income | - | - |
| Incl. Investment income from affiliates | - | - |
| Gains on changes in fair value | ||
| Gains on exchange | ||
| Gains on assets disposal | -76,376 | -773,087 |
| III. Operating profit | 1,026,897,359 | 1,086,423,160 |
| Add：Non-operating income | 4,781,728 | 5,066,536 |
| Less：Non-operating expenses | 1,831,411 | 344,060 |
| IV. Total profit before taxation | 1,029,847,676 | 1,091,145,636 |
| Less：Income tax | 259,949,041 | 273,703,205 |
| V. Net profit after taxation | 769,898,635 | 817,442,431 |
| (I) Going concern net profit | 769,898,635 | 817,442,431 |
| (II) Discontinued operation net profit | ||
| Net profit attributable to parent company | 769,753,655 | 816,184,462 |
| Minority interest income | 144,980 | 1,257,969 |
| VI. Net after-tax of other comprehensive income | 8,630,710 | 9,393,328 |
| Net after-tax of other comprehensive income attributable to owners of parent company | 7,450,860 | 7,927,583 |
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | - | - |
| 1. Changes as a result of re-measurement of net defined benefit plan | - | - |
| 2. Other comprehensive income which cannot be transferred to profit and loss under equity method | - | - |
| (II) Other comprehensive income items which can be reclassified subsequently to profit or loss | 7,450,860 | 7,927,583 |
| 1. Other comprehensive income which can be transferred to profit and loss under equity method | - | - |
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | - | - |
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | - | - |
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | - | - |
| 5. Translation differences arising on translation of foreign currency financial statements | 7,450,860 | 7,927,583 |
| 6. Other | - | - |
| Net after-tax of other comprehensive income attributable to minority shareholders | 1,179,850 | 1,465,745 |
| VII. Total comprehensive income | 778,529,345 | 826,835,759 |
| Total comprehensive income attributable to owners of parent Company | 777,204,515 | 824,112,045 |
| Total comprehensive income attributable to minority shareholders | 1,324,830 | 2,723,714 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 1.12 | 1.19 |
| (II) Diluted earnings per share | 1.12 | 1.19 |
During this report period, the issue relates to company consolidation under common control, consolidated party completes net profitamount of CNY 0 before being consolidated, and consolidated party completes net profit amount of CNY 0 in the same period of lastyear.
6) Profit statement of parent company from the beginning of the year to the end of the report period
Unit: CNY
| Item | Nine months ended 30 September 2018 | Nine months ended 30 September 2017 |
| I. Operating Revenue | 594,203,694 | 1,048,435,914 |
| Less：Operating Cost | 516,569,381 | 920,611,161 |
| Tax and levies on operations | 33,472,468 | 58,158,891 |
| Selling expenses | ||
| Administrative expenses | 61,014,018 | 62,601,562 |
| Research and development expenses | 860,671 | 819,621 |
| Finance expenses | -8,978,222 | 2,873,808 |
| Incl: Interest expenses | 13,580,944 | 15,825,773 |
| Interest income | 28,087,271 | 15,000,735 |
| Impairment losses of Assets | ||
| Add：Other income | 3,137,204 | 1,668,380 |
| Investment income | 392,259,576 | 278,866,246 |
| Incl. Investment income from affiliates | ||
| Gains on changes in fair value | ||
| Gains on assets disposal | 74,472 | -447,009 |
| II. Operating profit | 386,736,630 | 283,458,488 |
| Add：Non-operating income | 868,923 | 285,028 |
| Less：Non-operating expenses | 300,000 | 38,942 |
| III. Total Profit before taxation | 387,305,553 | 283,704,574 |
| Less：Income tax | 615,864 | 1,198,988 |
| IV. Net profit after taxation | 386,689,689 | 282,505,586 |
| (I) Going concern net profit | 386,689,689 | 282,505,586 |
| (II) Discontinued operation net profit | ||
| V. Net after-tax of other comprehensive income | - | |
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | - | |
| 1. Changes as a result of re-measurement of net defined benefit plan | - | |
| 2. Other comprehensive income which cannot be transferred to profit and loss under equity method | - | |
| (II) Other comprehensive income items which can be reclassified subsequently to profit or loss | - | |
| 1. Other comprehensive income which can be transferred to profit and loss under equity method | - | |
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | - | |
| 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | - | |
| 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | - | |
| 5. Translation differences arising on translation of foreign currency financial statements | - |
| 6. Other | - | |
| VI. Total comprehensive income | 386,689,689 | 282,505,586 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | 0.56 | 0.41 |
| (II) Diluted earnings per share | 0.56 | 0.41 |
7) Consolidated cash flow statement from the beginning of the year to the end of the report period
Unit: CNY
| Item | Nine months ended 30 September 2018 | Nine months ended 30 September 2017 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rending of services | 3,758,220,631 | 3,748,429,160 |
| Tax refund received | 44,108,497 | 55,504,426 |
| Other cash received related to operating activities | 72,133,583 | 49,871,055 |
| Subtotal of cash flows of operating activities | 3,874,462,711 | 3,853,804,641 |
| Cash paid for goods and services | 1,148,035,339 | 1,022,363,394 |
| Cash paid to and on behalf of employees | 382,654,609 | 353,314,524 |
| Cash paid for various taxes | 980,026,533 | 1,071,778,605 |
| Other cash paid related to operating activities | 586,905,436 | 599,720,288 |
| Sub-total of cash outflows of operating activities | 3,097,621,917 | 3,047,176,811 |
| Net cash flow from operating activities | 776,840,794 | 806,627,830 |
| II. Cash flow from investing activities: | ||
| Cash received from return of investment | ||
| Cash received from fixed deposit | 315,000,000 | 103,000,000 |
| Cash received from obtaining investment profit | 2,663,349 | 682,550 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 679,061 | 324,523 |
| Net cash received from disposal of branch and other business unit | ||
| Other cash received related to investing activities | ||
| Subtotal of cash flows of investment activities | 318,342,410 | 104,007,073 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 194,381,509 | 354,737,497 |
| Cash for fixed deposit | 340,000,000 | 201,000,000 |
| Cash for investment | ||
| Net cash paid to acquire branch and other business unit | 105,834,656 | 308,574,514 |
| Other cash paid related to investment activities | ||
| Subtotal of cash outflows of investment activities | 640,216,165 | 864,312,011 |
| Net cash flow from investing activities | -321,873,755 | -760,304,938 |
| III. Cash flow from financing activities | ||
| Cash received from acquiring investment | 48,396,726 | |
| Incl: Cash received from acquiring minority shareholders investment by branch | 48,396,726 | |
| Cash received from acquiring loans | 693,422,472 | 789,967,950 |
| Other cash received related to financing activities | 23,521,431 | 1,303,473 |
| Subtotal cash flows of financing activities | 716,943,903 | 839,668,149 |
| Cash paid to pay debts | 697,658,527 | 591,490,823 |
| Cash paid to distribute dividend, profit or pay interest | 370,522,623 | 369,915,621 |
| Incl: dividend and profit paid to minority shareholders by branch | ||
| Other cash paid related to financing activities | 20,000,000 | |
| Subtotal of cash outflows of financing activities | 1,088,181,150 | 961,406,444 |
| Net cash flow from financing activities | -371,237,247 | -121,738,295 |
| IV. Influences of exchange rate fluctuation on cash and cash equivalents | -1,776,998 | 2,252,682 |
| V. Net Increase in cash and cash equivalents | 81,952,794 | -73,162,721 |
| Add: Balance at the beginning of the period of cash and cash equivalents | 1,180,889,274 | 1,256,942,304 |
| VI. Balance at the end of the period of cash and cash equivalents | 1,262,842,068 | 1,183,779,583 |
8) Cash flow statement of parent company from the beginning of the year to the end of the report period
Unit: CNY
| Item | Nine months ended 30 September 2018 | Nine months ended 30 September 2017 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rending of services | 500,155,064 | 682,267,341 |
| Tax refund received | ||
| Other cash received related to operating activities | 117,304,238 | 282,251,646 |
| Subtotal of cash flows of operating activities | 617,459,302 | 964,518,987 |
| Cash paid for goods and services | 324,043,336 | 329,643,068 |
| Cash paid to and on behalf of employees | 61,318,451 | 77,242,480 |
| Cash paid for various taxes | 56,041,351 | 176,498,230 |
| Other cash paid related to operating activities | 35,822,969 | 81,894,029 |
| Sub-total of cash outflows of operating activities | 477,226,107 | 665,277,807 |
| Net cash flow from operating activities | 140,233,195 | 299,241,180 |
| II. Cash flow from investing activities: | ||
| Cash received from return of investment | ||
| Cash received from fixed deposit | 305,000,000 | 103,000,000 |
| Cash received from obtaining investment profit | 799,859,450 | 714,832,479 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 538,055 | 317,078 |
| Net cash received from disposal of branch and other business unit | ||
| Other cash received related to investing activities | ||
| Subtotal of cash flows of investment activities | 1,105,397,505 | 818,149,557 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 15,121,500 | 5,101,890 |
| Cash for fixed deposit | 340,000,000 | 105,000,000 |
| Cash for investment | 107,194,420 | 349,440,824 |
| Net cash paid to acquire branch and other business unit | ||
| Other cash paid related to investment activities | ||
| Subtotal of cash outflows of investment activities | 462,315,920 | 459,542,714 |
| Net cash flow from investing activities | 643,081,585 | 358,606,843 |
| III. Cash flow from financing activities | ||
| Cash received from acquiring investment | ||
| Cash received from acquiring loans | 200,000,000 | 600,000,000 |
| Other cash received related to financing activities | ||
| Subtotal cash flows of financing activities | 200,000,000 | 600,000,000 |
| Cash paid to pay debts | 600,000,000 | 530,339,600 |
| Cash paid to distribute dividend, profit or pay interest | 356,615,750 | 358,704,864 |
| Other cash paid related to financing activities | ||
| Subtotal of cash outflows of financing activities | 956,615,750 | 889,044,464 |
| Net cash flow from financing activities | -756,615,750 | -289,044,464 |
| IV. Influences of exchange rate fluctuation on cash and cash equivalents | ||
| V. Net Increase in cash and cash equivalents | 26,699,030 | 368,803,559 |
| Add: balance at the beginning of the period of cash and cash equivalents | 493,568,866 | 238,003,198 |
| VI. Balance at the end of the period of cash and cash equivalents | 520,267,896 | 606,806,757 |
2. Audit report
Whether the 3
rd
quarter report has been audited.
□Yes √No
The third quarter report has not been audited.
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
th
October 2018