Stock Code: 000869, 200869 Stock Abbreviation: Changyu A, Changyu B Announcement No.: 2023-Final 01
Yantai Changyu Pioneer Wine Co., Ltd.
2022 Annual Report Abstract
April 13, 2023
I. Important Notice
This Annual Report Abstract comes from the whole contents of annual report. If investors desire tocomprehensively understand the Company’s operating results, financial situation and futuredevelopment plan, please read the Annual Report on the media specified by the China SecuritiesRegulatory Commission.
Except for the following director, other directors attended this board meeting for reviewing thisannual 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 |
Aldino Marzorati | Director | On a business trip | Enrico Sivieri |
Non-standard audit opinion notice
□Available ?Not available
The preliminary scheme of the report period’s ordinary share profit distribution or increasing equitywith reserve deliberated by the board of the directors?Available □Not available
Whether to increase equity with reserve
□Yes ?No
The Company’s preliminary scheme of profit distribution deliberated and passed by the board ofdirectors this time is shown as following: Based on the Company’s total 685,464,000 shares, we planto pay CNY4.5 (including tax) in cash as dividends for every 10 shares to all shareholders and send 0bonus share (including tax). Capital reserve will not be transferred to equity.
The preliminary scheme of preferred share profit distribution during the report period deliberated andpassed by the board of directors
□Available ?Not available
II. Basic information of the Company
1. Brief introduction of the Company
Stock Abbreviation | Changyu A, Changyu B | Stock Code | 000869, 200869 |
Place of Stock Listing | Shenzhen Stock Exchange | ||
Stock Abbreviation before Alteration | - | ||
Contact person and information | Secretary to the Board of Directors | Authorized Representative of Securities Affairs | |
Name | Mr. Jianxun Jiang | Mr. Tingguo Li | |
Address | 56 Dama Road, Yantai, Shandong, China | 56 Dama Road, Yantai, Shandong, China | |
Fax | 0086-535-6633639 | 0086-535-6633639 | |
Tel | 0086-535-6602761 | 0086-535-6633656 | |
jiangjianxun@changyu.com.cn | stock@changyu.com.cn |
2. Main businesses during the report period or brief introduction of products
(1) Situation of industry in which the Company operates during the report periodIn 2022, the domestic wine market continued to decline due to the impact of the economic situationand the pressure from other liquors such as Baijiu and beers. The sales volume of imported wine anddomestic wine continued the trend of “double decline”, and the rising costs of raw material andpackaging further dragged down the profitability of enterprises. The vast majority of wine enterpriseswere in difficulty, and the domestic wine industry was still on the edge of loss.In the face of difficulties and challenges, the Company persisted in taking the market as the center,adhered to the development strategy of “Focus on middle-and-high level, Focus on high quality,Focus on large single product” and the marketing philosophy of “obtaining growth from the terminaland nurturing consumers”, took market-oriented action to accelerate the pace of business divisionreform, actively carry out circle marketing and continue to promote digital transformation . In 2022,the Company realized the operating revenue of CNY3918.94million with a year-on-year decrease of
0.86% and the net profit attributable to the parent company’s shareholders of CNY428.68millionwith a year-on-year decrease of 14.28%, maintaining the leading role in the industry.
(2) Main businesses during the report period
The Company need to comply with the disclosure requirements of Food and Liquor ManufacturingRelated Businesses in Shenzhen Stock Exchange Industry Information Disclosure 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 wine and
brandy, thus providing domestic and foreign consumers with healthy and fashionablealcoholic drinks. Compared with earlier stage, there were no significant changes happened to theCompany’s main business. The wine industry that the Company involved in was still in growth stage.Being affected by many factors including slowing domestic economic growth and strong pressurefrom alternatives in recent years, the competition in the market was fierce, the wine consumptioncontinuously declined, and a large number of wine production enterprises were on the brink of loss,even some wine enterprises were eliminated from the market. However, seen from the long term, theexisting consumption concept might change with the increase of people’s income level and theirpursuit of a relaxed, romantic and healthy lifestyle. More domestic wine would be drunk by people,and wine would enter more and more household consumption. The situation of current low averageconsumption of domestic wine would gradually improve. The Company was at the forefront in thedomestic wine market and was significantly ahead of major domestic competitors.The Company’s products were divided into two series: wine and brandy. For wine, main brandsincluded Changyu, Noble Dragon, AFIP, Longyu, Golden Ice Valley, Zenithwirl, Vermouth, Rena,Baron Balboa, J.LORMIN, Atrio, Kilikanoon and IWCC and so on. For Brandy, main brandsincluded Koya, Mminni, Pagese, Roullet Fransac and so on.
② The production licenses of main products obtained by the Company in China
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 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 major events
During the report period, there did not exist the trademark ownership dispute, food quality issue orfood safety incident etc. that had a significant impact on the Company.
(3) Major sales mode
The Company’s main sales mode was the distribution mode, and main sales channel was offline sales,that is, the Company’s products were distributed to sales terminals through approximately 4,000distributors at home and abroad and ultimately provided to consumers.
① Situation of change in the number of distributors
Region | Number at the beginning of 2022 | Increased number during this report period | Number at the end of 2022 |
Eastern China | 1857 | 79 | 1936 |
South China | 565 | 40 | 605 |
Central China | 476 | -29 | 447 |
North China | 365 | -7 | 358 |
Northwest China | 184 | -14 | 170 |
Southwest China | 493 | -10 | 483 |
Northeast China | 318 | -6 | 312 |
HongKong, Macao,Taiwan China and overseas | 573 | 29 | 602 |
Total | 4831 | 82 | 4913 |
② The Company and distributors took cash spot settlement, and mainly adopted buyout distributionmode.
Sales model | 2022 | 2021 | ||||
Operating income (CNY) | Operating cost (CNY) | Gross margin | Operating income (CNY) | Operating cost (CNY) | Gross margin |
Distribution
Distribution | 3,272,506,752 | 1,396,195,485 | 57.34% | 3,263,303,800 | 1,349,422,481 | 58.65% |
Direct sales
Direct sales | 646,434,408 | 284,599,247 284,599,247 | 55.97% | 689,763,784 | 298,367,393 | 56.74% |
Total | 3,918,941,160 | 1,680,794,732 | 57.11% | 3,953,067,584 | 1,647,789,874 | 58.32% |
③ Procurement mode and procurement content
Unit:CNY’0000
Procurement mode | Procurement content | The amount of the main procurement content |
Price determined by quality comparison with standard price items | Raw materials such as grapes/ bulk wine | 66,633.60 |
Tender/Price determined by quality comparison with standard price items | Packaging materials | 41,755.50 |
Tender/Price determined by quality comparison with standard price items | Brewing materials | 2,364.30 |
Tender/Price determined by quality comparison with standard price items | Vineyard supplies | 1,140.30 |
Contract | Fuel and power | 4,739.90 |
Price determined by quality comparison with standard price items | Other wines and derivatives | 2,736 |
(4) Major production mode
The production mode of the Company is self-produce.
3. Key accounting data and financial indicators
(1) Key accounting data and financial indicators in recent three years
Whether the Company needs to retrospectively adjust or restate the accounting data of previous fiscalyears.?Yes ?No
Unit: CNY
December 31st, 2022 | December 31st, 2021 | More or less than Last year end (%) | December 31st, 2020 | |
Total assets | 13,171,506,378 | 13,472,009,754 | -2.23% | 13,102,481,541 |
Net Assets attributed to shareholders of the listed company | 10,579,053,733 | 10,447,884,183 | 1.26% | 10,267,832,644 |
2022 | 2021 | More or less than Last year (%) | 2020 | |
Operating revenue | 3,918,941,160 | 3,953,067,583 | -0.86% | 3,395,402,001 |
Net profit attributed to shareholders of the listed company | 428,681,411 | 500,102,606 | -14.28% | 470,860,587 |
Net profit attributed to shareholders of the listed company after deducting non-recurring profits and losses | 413,831,359 | 472,235,962 | -12.37% | 397,655,187 |
Net cash flows from operating activities | 868,876,647 | 1,125,382,658 | -22.79% | 505,146,673 |
Basic earnings per share | 0.63 | 0.73 | -13.70% | 0.69 |
Diluted earnings per share | 0.63 | 0.73 | -13.70% | 0.69 |
Weighted average for earning rate of net assets | 4.09% | 4.84% | -0.75% | 4.57% |
(2) Key accounting data by quarter
Unit: CNY
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
Operating revenue | 1,165,989,959 | 787,102,176 | 857,930,890 | 1,107,918,135 |
Net profit attributed to shareholders of the listed company | 290,587,744 | 67,871,859 | 75,890,351 | -5,668,543 |
Net profit attributed to shareholders of the listed company after deducting non-recurring profits and losses | 284,168,658 | 60,140,364 | 68,081,711 | 1,440,626 |
Net cash flows from operating activities | 299,300,737 | 306,972,858 | 132,417,260 | 130,185,792 |
Whether there are significant differences between above-mentioned financial indicators or their sumand the related financial indicators in the quarterly report and semi-annual report disclosed by theCompany.
□Yes ?No
4. Capital stock and shareholders’ situation
(1) Number of ordinary shareholder and preferred shareholder recovering voting power, and situation of shares held by top ten shareholders
Unit: share
(2) Number of preferred shareholder and situation of preferred shares held by top ten preferred shareholders
□Available ?Not available
There are no shares held by preferred shareholders during the report period.
Total shareholders in the report period | 44,371 | Total number of shareholders by the end of last month before the disclosure day of the annual report | 42,682 | Total number of preferred shareholder recovering voting power by the end of report period | 0 | Total number of preferred shareholder recovering voting power by the end of last month before the disclosure day of the annual report | 0 | ||||||
Shareholders holding more than 5% or the top 10 shareholders holding situation | |||||||||||||
Name of Shareholders | Character of shareholders | Percentage (%) | Amount of holding shares | Number of restricted shares | Pledged /marked or frozen | ||||||||
Share status | Amount | ||||||||||||
YANTAI CHANGYU GROUP CO., LTD. | Domestic non-state legal person | 50.40% | 345,471,556 | 0 | - | 0 | |||||||
GAOLING FUND, L.P. | Foreign legal person | 3.08% | 21,090,219 | 0 | - | 0 | |||||||
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | Foreign legal person | 1.12% | 7,683,016 | 0 | - | 0 | |||||||
SHENWAN HONGYUAN SECURITIES (HONGKONG) LIMITED | Foreign legal person | 1.06% | 7,293,952 | 0 | - | 0 | |||||||
#JIANG Fengdi | Domestic natural person | 0.77% | 5,295,000 | 0 | - | 0 | |||||||
GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED | Foreign legal person | 0.73% | 4,998,831 | 0 | - | 0 | |||||||
Haitong International Securities Company Limited-Account Client | Foreign legal person | 0.73% | 4,986,502 | 0 | - | 0 | |||||||
HONG KONG SECURITIES CLEARING COMPANY LIMITED | Foreign legal person | 0.64% | 4,420,086 | 0 | - | 0 | |||||||
VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.59% | 4,026,863 | 0 | - | 0 | |||||||
FIDELITY CHINA SPECIAL SITUATIONS PLC | Foreign legal person | 0.55% | 3,779,202 | 0 | - | 0 | |||||||
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 for the top 10 shareholders who involved in financing activities and stock trading business (if have) | The top 10 shareholders do not involve in financing activities and stock trade business. |
(3) Introduction for property right and control relations between the Company and its actual controllers
5. Existing bond position on the submit date of annual report approval
□Available ?Not available
III. Important Matters
None
Yantai Changyu Pioneer Wine Co., Ltd.
Board of DirectorsApril 13, 2023