YantaiChangyuPioneerWineCo.,Ltd.
2023AnnualReport
Final2024-01
April12,2024
Contents
I、
ImportantNotice,ContentsandDefinition ...... 3II、BriefIntroductionfortheCompanyandMainFinancialIndicators ...... 6
III、ManagementDiscussionandAnalysis ...... 11
IV、CorporateGovernance ...... 35
V、EnvironmentalandSocialResponsibility ...... 63
VI、Majorissues ...... 66
VII、ChangesinSharesandShareholders’Situation ...... 76
VIII、RelatedSituationofPreferredShares ...... 87
IX、RelatedSituationofBonds ...... 87
X、FinancialReport ...... 87
I.ImportantNotice,ContentsandDefinitionTheboardofdirectors，theboardofsupervisors，directors,supervisorsandseniorexecutivesoftheCompanyguaranteethetruthfulness,accuracyandcompletenessofthecontentscontainedinthereportwithnofalserecords,misleadingstatementsorsignificantomissions,andundertakeindividualandjointlegalliabilities.Mr.HongjiangZhou(PersoninchargeoftheCompany),Mr.JianxunJiang(Personinchargeofaccountingwork)andMs.CuimeiGuo(Personinchargeofaccountingorgan&Accountantincharge)assurethetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.Exceptforthefollowingdirectors,otherdirectorsattendedthisboardmeetingforreviewingthisannualreportinperson.
Nameofdirectornotattendingthemeetingpersonally
| Nameofdirectornotattendingthemeetingpersonally | Positionofdirectornotattendingthemeetingpersonally | Reasonofnotattendingthemeetingpersonally | Nameofentrustee |
| ChangqingDuan | Independentdirector | Onabusinesstrip | QinglinLiu |
| HuirongLiu | Independentdirector | Onabusinesstrip | ZhuquanWang |
Forward-lookingstatementssuchasfutureplansanddevelopmentstrategiescoveredinthisreportdonotconstituteasubstantialcommitmentoftheCompanytoinvestors.Investorsareadvisedtopayattentiontoinvestmentrisks.Aboutsignificantrisksthatmaybefacedinproductionandoperationprocess,pleasereferto“(5)PotentialRisks”of“11.ExpectationfortheCompany’sFutureDevelopment”inthe“III.ManagementDiscussionandAnalysis”ofthisreport.Investorsareadvisedtoreadcarefullyandpayattentiontoinvestmentrisks.TheCompany’spreliminaryschemeofprofitdistributiondeliberatedandpassedbytheboardofdirectorsthistimeisshownasfollowing:BasedontheCompany’stotal692,249,559shares,theCompanyplanstopayCNY5(includingtax)incashasdividendsforevery10sharestoallshareholdersandsend0bonusshare(includingtax);capitalreservewillnotbetransferredtoequity.
ReferenceDocuments
(1)TheoriginalofAnnualReportautographedbytheChairman.
(2)TheFinancialStatementsautographedandsignedbytheChairman,ChiefAccountantandAccountantincharge.
(3)TheProspectusandPublicOfferingAnnouncementforStockBissuedin1997;TheProspectusofIntentandTheShares’Change&AShare’sPublicOfferingAnnouncementforStockAissuedbythecapitalincreasein2000.
(4)TheoriginalsofalldocumentsandannouncementsthattheCompanymadepublicduringthereportperiodinthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommission.
Definition
DefinitionItem
| DefinitionItem | Refersto | DefinitionContent |
| Company/TheCompany | Refersto | YantaiChangyuPioneerWineCo.,Ltd. |
| ChangyuGroup/ControllingShareholder | Refersto | YantaiChangyuGroupCo.,Ltd. |
| CSRC | Refersto | ChinaSecuritiesRegulatoryCommission |
| SSE | Refersto | ShenzhenStockExchange |
| KPMGHuazhen | Refersto | KPMGHuazhenLLP(LimitedLiabilityPartnership) |
| CNY | Refersto | ChineseYuan |
II.BriefIntroductionfortheCompanyandMainFinancialIndicators
1.Company’sinformation
StockAbbreviation
| StockAbbreviation | ChangyuA,ChangyuB | StockCode | 000869,200869 |
| StockAbbreviationafterAlteration | - | ||
| PlaceofStockListing | ShenzhenStockExchange | ||
| LegalNameinChinese | 烟台张裕葡萄酿酒股份有限公司 | ||
| AbbreviationofChineseName | 张裕 | ||
| LegalNameinEnglish | YANTAICHANGYUPIONEERWINECOMPANYLIMITED | ||
| AbbreviationofEnglishName | CHANGYU | ||
| LegalRepresentative | HongjiangZhou | ||
| RegisteredAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCodeofRegisteredAddress | 264000 | ||
| HistoricalChangeinRegisteredAddress | No | ||
| OfficeAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCodeofOfficeAddress | 264000 | ||
| Website | http://www.changyu.com.cn | ||
| webmaster@changyu.com.cn | |||
2.Contactpersonandinformation
| SecretarytotheBoardofDirectors | AuthorizedRepresentativeofSecuritiesAffairs | |
| Name | Mr.JianxunJiang | Mr.TingguoLi |
| Address | 56DamaRoad,Yantai,Shandong,China | 56DamaRoad,Yantai,Shandong,China |
| Tel. | 0086-535-6602761 | 0086-535-6633656 |
| Fax. | 0086-535-6633639 | 0086-535-6633639 |
| jiangjianxun@changyu.com.cn | stock@changyu.com.cn |
3.Informationdisclosureandfilinglocation
| Stockexchangewebsitefordisclosingannualreport | ShenzhenStockExchange(http://www.szse.cn) |
| Medianameandwebsitefordisclosingannualreport | ChinaSecuritiesNewspaper,SecuritiesTimes,HongKongCommercialDailyandCNINFOwebsite(http://www.cninfo.com.cn) |
| FilinglocationoftheCompany’sannualreport | BoardofDirectors’OfficeoftheCompany,56DamaRoad,Yantai,Shandong |
4.Registrationchanges
OrganizationCode
| OrganizationCode | 913700002671000358 |
| ChangesforthemainbusinessesoftheCompanysinceitwaslisted(ifhave) | ThebusinessscopedeterminedbytheCompanywhenitwasestablishedonSeptember18th,1997isproduction,processingandsalesofwine,distilledliquor,healthyliquor,fruitliquor,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachine.OnApril17th,2008,approvedbythe2007AnnualShareholders’Meeting,theCompany’sbusinessscopewaschangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachines;licensedimportandexport.OnMay12th,2010,approvedbythe2009AnnualShareholders’Meeting,theCompany’sbusinessscopewaschangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialanditsproductsandwinemakingmachinery;licensedimportandexport;externalinvestmentsubjecttonationalpolicy.OnSeptember23rd,2016,approvedbyThe1stInterimShareholders’Meetingin2016,theCompany’sbusinessscopewaschangedtoproductionofwineandfruitwine(bulkwine,processingandfilling);productionofblendingliquorandotherblendingliquors(grapeliqueur);productionofotherliquors(otherdistilledliquors);production,processingandsalesofpackingmaterialandwinemakingmachines;grapeplantationandprocurement;tourismresourcesdevelopment(excludingtourism);packagingdesign;activityofbuildingrental;licensedimportandexport;warehousebusiness;externalinvestmentsubjecttonationalpolicy. |
| Changesforallpreviouscontrollingshareholders(ifhave) | No |
5.OtherrelevantinformationTheaccountingfirmappointedbytheCompany
| Name | KPMGHuazhenLLP |
| Address | Level8,No.2EastWingofDongfangSquare,No.1EastChang’anStreet,Beijing |
| Nameofsignatoryaccountants | Ms.TingWang,Ms.HuiJiang |
ThesponsorinstitutionappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Available?NotavailableThefinancialadviserappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Available?Notavailable
6.KeyaccountingdataandfinancialindicatorsWhethertheCompanyneedstoretrospectivelyadjustorrestatetheaccountingdataofpreviousfiscalyears.
□Yes?No
Thelowerofthenetprofitsbeforenon-recurringgainsandlossesandafternon-recurringgainsandlossesinrecentthreefiscalyearsisnegativeandtheauditreportinrecentoneyearindicatesthereisuncertaintyintheCompany’ssustainableoperationability□Yes?NoThelowerofthenetprofitsbeforenon-recurringgainsandlossesandafternon-recurringgainsandlossesisnegative□Yes?No
7.DifferencesinaccountingdataunderPRCaccountingstandardsandinternationalaccountingstandards
2023
| 2023 | 2022 | Increase/decreasecomparedwithlastyear(%) | 2021 | |
| Operatingrevenue(CNY) | 4,384,764,335 | 3,918,941,160 | 11.89% | 3,953,067,583 |
| Netprofitattributedtoshareholdersofthelistedcompany(CNY) | 532,438,907 | 428,681,411 | 24.20% | 500,102,606 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses(CNY) | 464,073,693 | 413,831,359 | 12.14% | 472,235,962 |
| Netcashflowsfromoperatingactivities(CNY) | 1,173,091,743 | 868,876,647 | 35.01% | 1,125,382,658 |
| Basicearningspershare(CNY) | 0.78 | 0.63 | 23.81% | 0.73 |
| Dilutedearningspershare(CNY) | 0.78 | 0.63 | 23.81% | 0.73 |
| Weightedaverageforearningrateofnetassets | 4.98% | 4.09% | 0.89% | 4.84% |
| December31,2023 | December31,2022 | Increase/decreasecomparedwithlastyear-end(%) | December31,2021 | |
| Totalassets(CNY) | 13,336,267,204 | 13,171,506,378 | 1.25% | 13,472,009,754 |
| Netassetsattributedtoshareholdersofthelistedcompany(CNY) | 10,841,500,988 | 10,579,053,733 | 2.48% | 10,447,884,183 |
(1)DifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandards
□Available?NotavailableTherearenodifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
(2)DifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandards
□Available?NotavailableTherearenodifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
8.Keyfinancialindicatorsbyquarter
Unit：
CNY
stQuarter
| 1stQuarter | 2ndQuarter | 3rdQuarter | 4thQuarter | |
| Operatingrevenue | 1,131,459,036 | 835,279,449 | 834,486,573 | 1,583,539,277 |
| Netprofitattributedtoshareholdersofthelistedcompany | 276,778,987 | 86,790,449 | 60,948,191 | 107,921,280 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses | 267,069,409 | 57,252,566 | 54,891,658 | 84,860,060 |
| Netcashflowsfromoperatingactivities | 333,578,090 | 194,341,696 | 203,051,049 | 442,120,908 |
Whethertherearesignificantdifferencesbetweentheabovementionedfinancialindicatorsortheirsumandtherelatedfinancialindicatorsinthequarterlyreportsandsemi-annualreportsdisclosedbytheCompany.□Yes?No
9.Itemandamountofnon-recurringprofitandloss?Available□Notavailable
Unit：CNY
| Item | 2023 | 2022 | 2021 | Explanation |
| Profitsandlossesondisposalofnon-currentassets(includingtheprovisionforassetimpairmentwrite-offpart) | 23,852,237 | -18,902,024 | -15,364,993 | |
| Governmentgrantsrecordedintothecurrentprofitsandlosses(exceptforthosegovernmentgrantsthatarecloselyrelatedtotheenterprise’snormaloperation,inlinewithnationalpolicyprovisionsandinaccordancewithcertainstandardquotaorrationcontinuedtoenjoy) | 51,523,799 | 33,145,440 | 48,240,741 | |
| Othernon-operatingrevenuesandexpendituresinadditiontotheaforementioneditems | 9,137,420 | 4,750,614 | 2,328,169 | |
| Less：Incometaxeffect | 13,643,745 | 4,695,173 | 7,306,787 |
Minorityshareholders’equityeffect(aftertaxes)
| Minorityshareholders’equityeffect(aftertaxes) | 2,504,497 | -551,195 | 30,486 | |
| Total | 68,365,214 | 14,850,052 | 27,866,644 | -- |
Specificsituationofotherprofitandlossitemsconformingtothedefinitionofnon-recurringprofitandloss□Available?NotavailableTheredoesnotexistspecificsituationofotherprofitandlossitemsconformingtothedefinitionofnon-recurringprofitandloss.Explanationforregardingthenon-recurringprofitandlossspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLossasrecurrentprofitandloss□Available?NotavailableThereisnosituationregardingthenon-recurringprofitandlossspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLossasrecurrentprofitandloss.
III.ManagementDiscussionandAnalysis
1.SituationofindustryinwhichtheCompanyoperatesduringthereportperiodIn2023,theoveralldemandofChina’swinemarketisstillsluggish,coupledwiththesqueezeofstrongwinessuchasBaijiuandbeer,themarketcompetitionisveryfierce,andsomewineenterprisesareintrouble.Inthefaceofdifficultiesandchallenges,theCompanypersistedintakingthemarketasthecenter,adheredtothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonlargesingleproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,tookmarket-orientedactiontoacceleratethepaceofbusinessdivisionreform,implementequityincentive,continuetopromotecirclemarketing,banquetpromotionanddigitaltransformation.In2023,theCompanyrealizedtheoperatingrevenueofCNY4384.76millionwithayear-on-yearincreaseof11.89%andthenetprofitattributabletotheparentcompany’sshareholdersofCNY532.44millionwithayear-on-yearincreaseof24.20%,maintainingtheleadingroleintheindustry.
2.MainbusinessesduringthereportperiodTheCompanyneedtocomplywiththedisclosurerequirementsofFoodandLiquorManufacturingRelatedBusinessesinShenzhenStockExchangeIndustryInformationDisclosureGuidelineNo.3-IndustryInformationDisclosure.
(1)SituationoftheindustryinwhichtheCompanyoperatesDuringthereportperiod,theCompany’smainbusinesswasproductionandoperationofwineandbrandy,thusprovidingdomesticandforeignconsumerswithhealthyandfashionablealcoholicdrinks.Comparedwithearlierstage,therewerenosignificantchangeshappenedtotheCompany’smainbusiness.ThewineindustrythattheCompanyinvolvedinwasstillingrowthstage.Beingaffectedbymanyfactorsinrecentyears,thecompetitionindomesticwinemarketwasfierce,thewineconsumptioncontinuouslydeclined,andalargenumberofwineproductionenterpriseswereonthebrinkofloss,evensomewineenterpriseswereeliminatedfromthemarket.Therearenoclearsignsofareversalfortheindustry.However,seenfromthelongterm,theCompanybelievesthattheexistingconsumptionconceptmightchangewiththeincreaseofpeople’sincomelevelandtheirpursuitofarelaxed,romanticandhealthylifestyle.Moredomesticwinewouldbedrunkbypeople,andwinewouldentermoreandmorehouseholdconsumption.Thesituationofcurrentlowaverageconsumptionofdomesticwinewouldgraduallyimprove.TheCompanywasattheforefrontinthedomesticwinemarketandwassignificantlyaheadofmajordomesticcompetitors.
TheCompany’sproductsweredividedintotwoseries:wineandbrandy.Forwine,mainbrandsincludedChangyu,NobleDragon,AFIP,Longyu,GoldenIcewineValley,Zenithwirl,Vermouth,Rena,BaronBalboa,Donelly,Atrio,KilikanoonandIWCCandsoon.ForBrandy,mainbrandsincludedKoya,Liquan,Mminni,Pagese,RoulletFransacandsoon.
(2)TheproductionlicensesofmainproductsobtainedbytheCompanyinChina
Producername
| Producername | Foodcategory | Obtainingtime | Obtainingmethod | Foodproductionlicensenumber |
| YantaiChangyuPioneerWineCo.,Ltd. | Alcohol | 2021.06.01 | Approvalfromgovernmentauthority | SC11537060100050 |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd. | Alcohol | 2022.08.22 | Approvalfromgovernmentauthority | SC11511280920745 |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd. | Alcohol | 2021.03.25 | Approvalfromgovernmentauthority | SC11521052200370 |
| NingxiaChateauChangyuMoserXVCo.,Ltd. | Alcohol | 2018.01.25 | Approvalfromgovernmentauthority | SC11564010500657 |
| XinjiangChateauChangyuBaronBalboaCo.,Ltd. | Alcohol | 2017.08.25 | Approvalfromgovernmentauthority | SC11565900100392 |
| YantaiChateauChangyu-CastelCo.,Ltd. | Alcohol | 2021.06.08 | Approvalfromgovernmentauthority | SC11537063600172 |
| ShaanxiChateauChangyuRenaCo.,Ltd. | Alcohol | 2020.10.19 | Approvalfromgovernmentauthority | SC11561040400532 |
| YantaiChateauKoyaBrandyCo.,Ltd. | Alcohol | 2021.01.11 | Approvalfromgovernmentauthority | SC11537063601165 |
(3)ExplanationforothermajoreventsDuringthereportperiod,theredidnotexistthetrademarkownershipdispute,foodqualityissueorfoodsafetyincidentetc.thathadasignificantimpactontheCompany.MajorsalesmodeTheCompany’smainsalesmodewasthedistributionmode,andmainsaleschannelwasofflinesales,thatis,theCompany’sproductsweredistributedtosalesterminalsthroughapproximately5,000distributorsathomeandabroadandultimatelyprovidedtoconsumers.
Distributionmode?Available□Notavailable
(1)Situationofchangeinthenumberofdistributors
Region
| Region | Numberatthebeginningof2023 | Increasednumberduringthisreportperiod | Numberattheendof2023 |
| EasternChina | 1936 | 129 | 2065 |
| SouthChina | 605 | -12 | 593 |
| CentralChina | 447 | -31 | 416 |
| NorthChina | 358 | -6 | 352 |
| NorthwestChina | 170 | -9 | 161 |
| SouthwestChina | 483 | -20 | 463 |
| NortheastChina | 312 | -10 | 302 |
| HongKong,Macao,TaiwanChinaandoverseas | 602 | 105 | 707 |
| Total | 4913 | 146 | 5059 |
(2)TheCompanyanddistributorstookcashspotsettlement,andmainlyadoptedbuyoutdistributionmode.
Theratioofsalesinself-ownedexclusiveshopexceeds10%□Available?NotavailableSalesofonlinedirectselling?Available□Notavailable
| Salesmodel | 2023 | 2022 | ||||
| Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | |
| Distribution | 3,725,067,921 | 1,499,834,836 | 59.74% | 3,272,506,752 | 1,396,195,485 | 57.34% |
| Directsales | 659,696,414 | 287,148,821 | 56.47% | 646,434,408 | 284,599,247 | 55.97% |
| Total | 4,384,764,335 | 1,786,983,657 | 59.25% | 3,918,941,160 | 1,680,794,732 | 57.11% |
Thechangeinsalespricesofmajorproductsaccountingformorethan10%oftotaloperatingincomeincurrentreportperiodexceeds30%comparedwiththoseinlastreportperiod□Available?NotavailableProcurementmodeandprocurementcontent
Unit：CNY
Procurementmode
| Procurementmode | Procurementcontent | Theamountofthemainprocurementcontent |
| Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Rawmaterialssuchasgrapes/bulkwine | 72,953 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Packagingmaterials | 53,449 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Brewingmaterials | 2,230 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Vineyardsupplies | 955 |
| Contract | Fuelandpower | 4,387 |
| Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Otherwinesandderivatives | 2,650 |
Amountofpurchasingrawmaterialsfromcooperativesorfarmersexceeds30%oftotalprocedureamount□Available?NotavailableTheyear-on-yearchangeinthepriceofmajoroutsourcedrawmaterialsexceeds30%
□Available?NotavailableMajorproductionmodeTheproductionmodeoftheCompanyisself-produce.Manufacturingconsignment□Available?NotavailableMajorcomponentsofoperatingcostsPleasereferto‘4.Analysisinmainbusiness’inthischapter.YieldandinventoryPleasereferto‘4.Analysisinmainbusiness’inthischapter.
| Salesmodel | 2023 | 2022 | ||||
| Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | |
| Distribution | 3,725,067,921 | 1,499,834,836 | 59.74% | 3,272,506,752 | 1,396,195,485 | 57.34% |
| Directsales | 659,696,414 | 287,148,821 | 56.47% | 646,434,408 | 284,599,247 | 55.97% |
| Total | 4,384,764,335 | 1,786,983,657 | 59.25% | 3,918,941,160 | 1,680,794,732 | 57.11% |
3.AnalysisofcorecompetitivenessComparedwiththeparticipantsinthearenaoftheChinesewinecompetitionsector,theCompanyownsfollowingadvantages:
Firstly,theCompanyhasalargebrandinfluence.Mainbrandsusedhavealonghistory.“Changyu”,“NobleDragon”and“AFIP”areall“Chinafamousbrands”thathavestronginfluenceandgoodreputation.Secondly,theCompanyhassetupanationwidemarketingnetwork.TheCompanyhasformeda“three-level”marketingnetworksystemmainlycomposedoftheCompany’ssalesmenanddistributorsandtheonlinesalesplatformhashadacertainscaleandstronginfluence,owingstrongmarketingabilityandmarketexploitationability.Thirdly,theCompanyhasstrongscientificprowessandaproductR&Dsystem.Relyingonthecountry’s“State-levelWineR&DCenter”,theCompanyhasownedpowerfulwinemakerteam,masteredadvancedwinemakingtechnologyandproductionprocessesandhadstrongproductinnovationcapacityandperfectqualitycontrolsystem.Fourthly,theCompanyisinpossessionofalotofgrape-growingbasesthatarecompatiblewithitsdevelopmentrequirements.TheCompanyhasdevelopedagreatdealofvineyardsinthemostsuitableareasforwinegrapegrowingsuchasShandong,NingxiaandXinjiang,anditssubsidiaryoverseasenterprisesalsoownmatchinggrapebasesinlocalarea,makingtheoverallscaleandstructuregenerallymeettheCompany’sneedsforfuturedevelopment.Fifthly,productsinhigh,mediumandlow-gradeaswellasvarietiesandcategoriesareallcomplete.Over100varietiesofseriesproductssuchaswine,brandyandsparklingwinecoversvariousgrades,includinghigh,mediumandlow-grade,whichcanmeetdifferentconsumergroups’demands.TheCompanyhastakenthedominantstatusinthedomesticwineindustryaftermanyyears’developmentandhascomparativeadvantagesinthefuturecompetition.Sixthly,theCompanyhasarelativelyperfectmotivationsystem.MostofCompany’semployeesindirectlyholdtheCompany’sequitythroughcontrollingshareholders.Therearehighconsistencybetweenemployeebenefitsandshareholdersbenefits,infavorofmotivatingemployeestocreatevalueforshareholders.Seventhly,theCompanyhassetupflexibleandefficientdecision-makingmechanism.TheCompany’scoremanagementteamalwaysmaintainsaworkingstyleofunityandpragmaticandflexibleandefficientdecision-makingmechanism,whichmakestheCompanycandealwithmarketchangesmorecalmly.Eighthly,theglobalproductioncapacitylayouthasbeenbasicallycompleted.TheCompanyhascompletedproductioncapacitylayoutinChina,France,Chile,Spain,Australiaandothermajorwineproducingcountriesintheworld,enablingmakingbetteruseofglobalhigh-qualityraw
materialresources,capital,talentsandadvancedproductionprocessesandtechnologiestoprovideconsumerswithdiversifiedqualityproductsandbetterserveconsumers.Basedontheabovereasons,theCompanyhasformedrelativelystrongcorecompetenceandwillmaintainarelativelydominantpositioninthefuturepredictablemarketcompetition.
4.Analysisinmainbusiness
(1)Summarization
Description
| Description | Increaseordecreaseduringthisperiodoverlastyear | Causeofsignificantchanges |
| Operatingrevenue | 11.89% | Mainlyduetotheincreaseinsalesvolume |
| Operatingcost | 6.32% | Mainlyduetotheincreaseintheprocurementcost |
| Salesexpense | 20.49% | Mainlyduetotheincreasedmarketingexpenseresultingfromincreasedmarketinvestment |
| Managementexpense | 5.70% | Mainlyduetotheincreaseinperformancesalaryresultingfromincreasedrevenue |
| R&Dexpense | 12.85% | MainlyduetotheCompany’sincreasedR&Defforts,thecostoftestingandconsumablematerialsincreased. |
| Financialexpense | 52.74% | Mainlyduetotheincreaseinloaninterestrateborrowingbyoverseascompanies. |
| Netamountofcashflowgeneratedinoperatingactivities | 35.05% | Mainlyduetotheincreaseinoperatingincomeduringtheyear. |
| Netamountofcashflowgeneratedininvestmentactivities | -124.48% | Mainlyduetotheincreaseintimedepositduringtheyear. |
| Netamountofcashflowgeneratedinfinancingactivities | 18.72% | Mainlyduetolowerloanrepaymentsduringtheyear. |
ReviewandsummaryoftheprocessoftheCompany’searly-discloseddevelopmentstrategyandbusinessplanduringthereportperiodDuringthereportperiod,demandofChina’swineindustrydidnotimprovemuch,andallthestaffoftheCompanymadeconcertedeffortsandforgedaheadtocompletethemainworkobjectivesidentifiedatthebeginningoftheyear.TheCompanyrealizedtheoperatingrevenueofCNY4384.76millionwithaincreaseof11.89%comparedwithlastyear,higherthanthetargetfixedatthebeginningoftheyearofrealizingoperatingrevenuenolessthanCNY4.2billion,andrealizedthenetprofitattributabletotheparentcompany’sshareholdersofCNY532.44millionwithaincreaseof24.20%comparedwithlastyear.Themainworksduringthereportperiodwereshownasfollowed:
Firstly,theCompanykeptinnovating,andinsistedonleadingthedevelopmentoftheCompanywithinnovation.TheCompanyimplementedtherestrictedshareincentiveplan,whichstimulatedthevitalityoftheenterpriseandpromotedtheimprovementofperformance;integratedandoptimizedYantailocalproductionsystemandtheself-operatedgrapebaseinYantai,whichbetterplayedtheadvantagesofequipmentproductioncapacityandimprovedpersonnelallocation,andstrengthenedprofitorientationandqualityorientation,achievingcostreductionandefficiencyincrease;achievedstageresultsinthescreeningofminorityvariety,theutilizationoflocalyeast,theaginginChineseoakandpottery,andlightandsimplifiedtreatment;newlyobtainedonenationalinventionpatentandoneutilitymodelpatent;developedandlaunchednewproductssuchasNational-redLongyu,AFIPvastlandseries,KoyaLoong-yearzodiacbrandy,KoyaPinzhongliquanXO,Kilikanoon7-starCrownandDonellyKirinseries;integratedandupgradedthe“ChangyuQualityLife+”memberappletand“ChangyuWineOfficialFlagshipStore”applet,whichimproveduserexperienceandreducedthesubscriptioncostandoperationandmaintenanceexpense.Secondly,theCompanydeepenedtheconstructionofthebusinessdivisionsystem,whichplayedadecisiveroleinimprovingtheperformance.Incombinationofitsownproductsandmarketcharacteristics,eachbusinessdivisionoftheCompanycarriedoutmultiformmarketingactivitiessuchasbanquetingpromotion,producttasting,chateauexperienceandlivesalesbasedondifferenttiminganddifferentlocalconditions;strengthenedtheconstructionofmarketingteamsystem,andestablishedthe“marketingpromotion”and“credit”evaluationsystemofdistributorsandaffiliates;focusedonthecirclemarketingaswellasthespecifiedaction;acceleratedtheconstructionofproductexperiencehall,achievinggoodresults.Thirdly,theCompanyadheredtothebottom-lineconsciousnessanddidnottouchtheredline.TheCompanycontinuedtoconsolidatethesenseofsafetyproductionandstrengthenedinternalsupervisionandunannouncedinspection;carriedoutspecialtrainingonsafetyeducationatdifferentpositions,stagesanditems,andalsotookspecialinvestigationandrectificationactivitiesformajoraccidentpotentials;improvedtheconstructionofthesafetymanagementinformatizationplatformandcomprehensivelyimprovedthelevelofsafetymanagementandworkefficiency,andnomajoraccidentsoccurredthroughouttheyear;strictlyimplementedtheentityresponsibilityforfoodsafety,andfurtherstandardizedandinstitutionalizedthemanagementofproductionsitesandkeylinksthroughtheestablishmentofthe“qualityday”,“dailycontrol,weeklyinvestigation,monthlyscheduling”systems.Withingenuitytokeeptheoriginalheart,theCompanyadheredtotheconceptof“productqualityisthemostfundamental”unwaveringly,andwonmorethan227gold-and-above-levelawardsinthewell-knownlocalandabroadcompetitionslastyear;receivedthegoodnewsthat“Koya”brandywasselectedintothesecondbatchof“outstandingShandongproducts”brands;successfullycompletedthegrapepurchaseandprocessingwork,andsignificantlyimprovedboththequantityandthequalityofpremiumbulkwine.Fourthly,theCompanystrengthenedfinancialmanagementandintensifiedthefunctionofauditsupervision.TheCompanycompletedanumberofauditworksuchaskeyexpenseaudit,profitauthenticityaudit,assetintegrityandeffectivenessauditandeconomicresponsibilityinvestigation,
andconductedpunishmenttorelevantresponsibleperson;strengthenedfundmanagementandincreasedinterestincomethroughstructureddeposits,agreeddepositsandotherways;strengthenedthefinancialsupervisioninoverseasenterprisesandhelpedsolvethefinancingproblems,ensuringthecontinuableoperationofoverseasenterprises.
(2)Revenueandcost①Compositionofoperatingrevenue
Unit:CNY
2023
| 2023 | 2022 | Year-on-yearincreaseordecrease(%) | |||
| Amount | Proportioninoperatingrevenue | Amount | Proportioninoperatingrevenue | ||
| Totaloperatingrevenue | 4,384,764,335 | 100% | 3,918,941,160 | 100% | 11.89% |
| Sector-classified | |||||
| Sectorofliquorandalcoholicbeverage | 4,384,764,335 | 100% | 3,918,941,160 | 100% | 11.89% |
| Product-classified | |||||
| Wine | 3,139,234,808 | 71.59% | 2,841,437,996 | 72.51% | 10.48% |
| Brandy | 1,152,841,194 | 26.30% | 990,847,691 | 25.28% | 16.35% |
| Tourism | 82,987,641 | 1.89% | 76,422,314 | 1.95% | 8.59% |
| Others | 9,700,692 | 0.22% | 10,233,159 | 0.26% | -5.20% |
| Area-classified | |||||
| Domestic | 3,761,534,794 | 85.79% | 3,320,757,555 | 84.74% | 13.27% |
| Overseas | 623,229,541 | 14.21% | 598,183,605 | 15.26% | 4.19% |
| Salesmodel-classified | |||||
| Distribution | 3,725,067,921 | 84.95% | 3,272,506,752 | 83.50% | 13.83% |
| Directsales | 659,696,414 | 15.05% | 646,434,408 | 16.50% | 2.05% |
②Theindustry,product,regionandsalesmodelthataccountforover10%oftheCompany’soperatingrevenueoroperatingprofit?Available□Notavailable
Unit:CNY
| Operatingrevenue | Operatingcost | Grossmargin | Year-on-yearincreaseordecrease(%)ofoperatingrevenue | Year-on-yearincreaseordecrease(%)ofoperatingcost | Year-on-yearincreaseordecrease(%)ofgrossprofitrate | |
| Industry-classified | ||||||
| Industryofliquorandalcoholicbeverage | 4,384,764,335 | 1,786,983,657 | 59.25% | 11.89% | 6.32% | 3.74% |
| Product-classified | ||||||
| Wine | 3,139,234,808 | 1,285,794,140 | 59.04% | 10.48% | 4.18% | 4.02% |
Brandy
| Brandy | 1,152,841,194 | 460,505,979 | 60.05% | 16.35% | 13.32% | 1.80% |
| Tourism | 82,987,641 | 35,413,161 | 57.33% | 8.59% | 1.64% | 5.36% |
| Others | 9,700,692 | 5,270,377 | 45.67% | -5.20% | -2.06% | -3.69% |
| Area-classified | ||||||
| Domestic | 3,761,534,794 | 1,413,634,659 | 62.42% | 13.27% | 9.79% | 0.82% |
| Overseas | 623,229,541 | 373,348,998 | 40.09% | 4.19% | -8.62% | 7.88% |
| Salesmodel-classified | ||||||
| Distribution | 3,725,067,921 | 1,499,834,836 | 59.74% | 13.83% | 7.42% | 2.40% |
| Directsales | 659,696,414 | 287,148,821 | 56.47% | 2.05% | 0.90% | 0.50% |
UndertheconditionthatthestatisticalcaliberoftheCompany’smainbusinessdataisadjustedduringthereportperiod,theCompany’smainbusinessdataadjustedonthebasisofcaliberattheendofreportperiodinrecentoneyear.
□Available?Notavailable
③WhethertheCompany’ssalesrevenueformaterialobjectismorethanlaborservicerevenue?Yes□No
| Sector | Item | Unit | 2023 | 2022 | Year-on-yearincreaseordecrease(%) |
| Alcoholandalcoholicbeverageindustry | Salesvolume | Ton | 95,557 | 93,004 | 2.75% |
| Yield | Ton | 90,897 | 90,099 | 0.89% | |
| Inventory | Ton | 25,996 | 27,427 | -5.22% | |
| Wine | Salesvolume | Ton | 65,677 | 65,540 | 0.21% |
| Yield | Ton | 62,772 | 66,269 | -5.28% | |
| Inventory | Ton | 17,037 | 16,441 | 3.63% | |
| Brandy | Salesvolume | Ton | 29,880 | 27,464 | 8.80% |
| Yield | Ton | 28,125 | 23,830 | 18.02% | |
| Inventory | Ton | 8,959 | 10,986 | -18.45% |
Explanationonthecausesofover30%year-on-yearchangesoftherelatedcomparisondata
□Available?Notavailable
④ThefulfillmentofsignificantsalescontractandpurchasecontractsignedbytheCompanyuptothereportperiod□Available?Notavailable
⑤CompositionofoperatingcostsProductcategories
Unit:CNY
Productcategory
| Productcategory | Item | 2023 | 2022 | Year-on-yearincreaseordecrease(%) | ||
| Amount | Proportionintheoperatingcost(%) | Amount | Proportionintheoperatingcost(%) | |||
| Wine | Blendingliquor | 656,311,928 | 51.04% | 607,707,572 | 49.24% | 8.00% |
| Packingmaterial | 318,464,336 | 24.77% | 306,725,909 | 24.85% | 3.83% | |
| Wages | 43,873,400 | 3.41% | 34,568,141 | 2.80% | 26.92% | |
| Manufacturingcost | 174,460,788 | 13.57% | 186,498,787 | 15.11% | -6.45% | |
| Contractperformancecosts | 92,683,688 | 7.21% | 98,684,162 | 8.00% | -6.08% | |
| Brandy | Blendingliquor | 216,764,039 | 47.07% | 197,677,900 | 48.64% | 9.66% |
| Packingmaterial | 143,038,953 | 31.06% | 126,089,609 | 31.03% | 13.44% | |
| Wages | 9,390,550 | 2.04% | 8,076,651 | 1.99% | 16.27% | |
| Manufacturingcost | 58,406,958 | 12.68% | 42,548,467 | 10.47% | 37.27% | |
| Contractperformancecosts | 32,905,479 | 7.15% | 31,994,291 | 7.87% | 2.85% | |
ExplanationNo⑥Whethertherearechangesofconsolidationscopeduringthereportperiod?Yes?No
⑦MajorchangesoradjustmentsoftheCompany’sbusinesses,productsorserviceduringthereportperiod□Available?Notavailable⑧InformationofmajorsalescustomersandmajorsuppliersTheCompany’smajorsalescustomers
| Thetotalsalesamountofthetopfivecustomers（CNY） | 285,095,992 |
| Theproportionthattotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 6.50% |
| Theproportionthatsalesamountoftherelatedpartyinthetotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 0% |
InformationoftheCompany’s5biggestsalescustomers
| No. | Customername | Salesamount（CNY） | Proportionintotalsalesfortheyear（%） |
| 1 | Rank1st | 170,870,674 | 3.90% |
| 2 | Rank2nd | 33,316,135 | 0.76% |
| 3 | Rank3rd | 28,625,515 | 0.65% |
| 4 | Rank4th | 28,373,917 | 0.65% |
| 5 | Rank5th | 23,909,751 | 0.55% |
| Total | -- | 285,095,992 | 6.50% |
Othersituationexplanationsofmajorcustomers
□Available?NotavailableInformationontheCompany’smainsuppliers
| Thetotalpurchaseamountofthetop5suppliers | 378,880,684 |
| Theproportionofthetotalpurchaseamountofthetop5suppliersintheannualpurchaseamount | 27.73% |
| Theproportionoftherelatedpartypurchaseamountinthetop5supplierpurchaseamountinannualpurchaseamount | 6.15% |
InformationontheCompany’stop5biggestsuppliers
| No. | Suppliername | Purchaseamount(CNY) | Proportionintotalpurchasefortheyear（%） |
| 1 | Rank1st | 124,158,163 | 9.09% |
| 2 | Rank2nd | 83,991,232 | 6.15% |
| 3 | Rank3rd | 75,882,684 | 5.55% |
| 4 | Rank4th | 57,208,512 | 4.19% |
| 5 | Rank5th | 37,640,093 | 2.75% |
| Total | -- | 378,880,684 | 27.73% |
Othersituationexplanationsofmainsuppliers□Available?Notavailable
(3)Expense
Unit:CNY
| 2023 | 2022 | Year-on-yearincreaseordecrease(%) | Explanationofsignificantchanges | |
| Salesexpense | 1,239,782,776 | 1,028,966,138 | 20.49% | Mainlybecauseofincreasedmarketingexpenseresultingfromincreasedmarketinvestment |
| Managementexpense | 303,990,858 | 287,605,531 | 5.70% | Mainlybecauseoftheincreaseinperformancesalaryresultingfromincreasedrevenue |
| Financialexpense | 11,083,459 | 7,256,207 | 52.74% | Mainlybecauseofincreaseinloaninterestborrowingbyoverseascompanies. |
| Researchand | 17,413,534 | 15,431,310 | 12.85% | MainlyduetotheCompany’sincreased |
Developmentexpense
| Developmentexpense | R&Defforts,thecostoftestingandconsumablematerialsincreased. |
TheCompanyneedstocomplywiththedisclosurerequirementsofthefoodandwinemanufacturingindustryassetoutintheGuidanceonSelf-RegulationofListedCompaniesofShenzhenStockExchangeNo.3-IndustryInformationDisclosure.
(4)Researchanddevelopmentinvestment?Available□Notavailable
| Nameofmainresearchanddevelopmentproject | Projectpurpose | Projectprogress | Target | PredictedinfluenceintheCompany’sfuturedevelopment |
| — | — | — | — | — |
TheCompany’sresearchanddevelopmentpersonnel
| 2023 | 2022 | Percentageofchanges(%) | |
| NumberofR&Dpersonnel(person) | 139 | 139 | 0% |
| TheproportionofthenumberofR&Dpersonnel | 6.35% | 6.12% | 0.23% |
| EducationalstructureofR&Dpersonnel | |||
| Bachelor | 48 | 48 | 0% |
| Postgraduate | 25 | 25 | 0% |
| Doctor | 1 | 1 | 0% |
| BelowBachelor | 65 | 65 | 0% |
| AgestructureofR&Dpersonnel | |||
| Under30-year-old | 34 | 35 | -2.86% |
| 30-to40-year-old | 41 | 41 | 0% |
| Above40-year-old | 64 | 63 | 1.59% |
TheinvestmentoftheCompany’sR&D
| 2023 | 2022 | Percentageofchanges(%) | |
| R&Dinvestmentamount(CNY) | 17,413,534 | 15,431,310 | 12.85% |
| R&Dinvestmentasapercentageofoperatingincome | 0.40% | 0.39% | 0.01% |
| AmountofR&Dinvestmentcapitalized(CNY) | 0 | 0 | 0% |
| CapitalizedR&DinvestmentasapercentageofR&Dinvestment | 0% | 0% | 0% |
Reasonsandeffectsofmajorchangesinthecompositionofthecompany’sR&Dpersonnel□Available?NotavailableReasonsforthesignificantchangeintheproportionoftotalR&Dinvestmentinoperatingincomecomparedwiththepreviousyear
□Available?Notavailable
ReasonsforthesubstantialchangesinthecapitalizationrateofR&Dinvestmentanditsrationalityexplanation
□Available?Notavailable
(5)Cashflow
Unit:CNY
Item
| Item | 2023 | 2022 | Year-on-yearincreaseordecrease(%) |
| Subtotalofcashinflowinoperatingactivities | 4,619,240,588 | 3,929,156,504 | 17.56% |
| Subtotalofcashoutflowinoperatingactivities | 3,446,148,845 | 3,060,279,857 | 12.61% |
| Netamountofcashflowgeneratedinoperatingactivities | 1,173,091,743 | 868,876,647 | 35.01% |
| Subtotalofcashinflowininvestmentactivities | 272,891,533 | 162,953,148 | 67.47% |
| Subtotalofcashoutflowininvestmentactivities | 596,232,219 | 306,991,362 | 94.22% |
| Netamountofcashflowgeneratedininvestmentactivities | -323,340,686 | -144,038,214 | -124.48% |
| Subtotalofcashinflowinfinancingactivities | 677,271,426 | 641,331,495 | 5.60% |
| Subtotalofcashoutflowinfinancingactivities | 1,176,936,494 | 1,256,089,072 | -6.30% |
| Netamountofcashflowgeneratedinfinancingactivities | -499,665,068 | -614,757,577 | 18.72% |
| Netincreaseofcashandcashequivalents | 350,402,152 | 110,426,571 | 217.32% |
Explanationofmaininfluencefactorscontributingtogreatchangesinrelateddataonyear-on-yearbasis
□Available?NotavailableExplanationonthecausesofmajordifferencesbetweenthenetcashflowgeneratedbytheCompany’soperatingactivitiesandnetprofitofthisyearduringthereportperiod.
□Available?Notavailable
5.Analysistonon-mainbusiness
□Available?Notavailable
6.Assetsandliabilities
(1)Significantchangesofassetscomposition
Unit:CNY
Attheendof2023
| Attheendof2023 | Atthebeginningof2023 | Proportionincreaseordecrease(%) | Explanationonsignificantchanges | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Monetaryfunds | 2,217,693,647 | 16.63% | 1,651,454,115 | 12.54% | 4.09% | Nosignificantchanges |
| Receivables | 382,132,334 | 2.87% | 343,982,985 | 2.61% | 0.26% | Nosignificantchanges |
| Contractassets | 0% | 0% | 0% | Nosignificantchanges | ||
| Inventory | 2,765,390,587 | 20.74% | 2,903,398,515 | 22.04% | -1.30% | Nosignificantchanges |
| Investmentrealestate | 24,482,831 | 0.18% | 22,115,318 | 0.17% | 0.01% | Nosignificantchanges |
| Long-termequityinvestments | 38,285,620 | 0.29% | 41,371,385 | 0.31% | -0.02% | Nosignificantchanges |
| Fixedassets | 5,795,082,569 | 43.45% | 6,028,137,972 | 45.77% | -2.32% | Nosignificantchanges |
| Constructioninprogress | 3,323,241 | 0.02% | 40,934,161 | 0.31% | -0.29% | Nosignificantchanges |
| Right-of-useasset | 121,745,910 | 0.91% | 139,887,159 | 1.06% | -0.15% | Nosignificantchanges |
| Short-termborrowings | 364,981,445 | 2.74% | 389,378,480 | 2.96% | -0.22% | Nosignificantchanges |
| Contractliability | 175,278,849 | 1.31% | 165,727,991 | 1.26% | 0.05% | Nosignificantchanges |
| Long-termborrowings | 66,616,443 | 0.50% | 128,112,115 | 0.97% | -0.47% | Nosignificantchanges |
| Leaseliability | 85,038,335 | 0.64% | 109,505,093 | 0.83% | -0.19% | Nosignificantchanges |
Foreignassethasahighproportion?Available□Notavailable
Detailsofassets
| Detailsofassets | Formationreasons | Assetsscale | Location | Operationmode | Controlmeasuresforsafeguardingofassetsecurity | Earningcondition | ProportionofoverseasassetsintheCompany’snetassets | Whethertherearesignificantimpairmentrisks |
| HaciendaYVinedosMarquesDelAtrio.SL | Acquisitionofequity | 576,893,966 | Spain | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOonfinancialmanagement. | 21,492,701 | 4.33% | No |
| IndomitaWineCompanyChile,S.p.A. | Establishmentofjointventure | 566,831,085 | Chile | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | 11,018,541 | 4.25% | No |
| KilikanoonEstatePty.,Ltd. | Acquisitionofequity | 185,704,067 | Australia | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | (7,855,422) | 1.39% | No |
| FrancsChampsParticipationsSAS | Soleproprietorshipestablishment | 219,388,533 | France | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | (2,057,375) | 1.65% | No |
| Otherexplanation | None | |||||||
(2)Assetsandliabilitiesmeasuredatfairvalue
□Available?Notavailable
(3)LimitationsofassetsrightsuptotheendofthereportperiodPleaserefertothe‘52.Assetswithrestrictiveownershiptitleorrightofuse’ofthe‘Notestothefinancialstatements’inthisreport’sfinancialreport.
7.Investmentconditionanalysis
(1)Overallsituation?Available□Notavailable
Investmentamountduringthereportperiod(CNY)
| Investmentamountduringthereportperiod(CNY) | Investmentamountofthesameperiodoflastyear(CNY) | Variation |
| 46,150,000 | 126,590,000 | -63.54% |
(2)Casesofacquiredsignificantequityinvestmentsduringthereportperiod
□Available?Notavailable
(3)Casesofsignificantongoingnon-equityinvestmentsduringthereportperiod?Available□Notavailable
Unit:CNY
| Projectname | Investmentmode | Whetherbelongstofixedassetsinvestment | Involvedsectorsofinvestmentprojects | Investmentamountduringthereportperiod | Accumulatedactualinvestmentamountuptotheendofthereportperiod | Capitalsource | Projectprogress | Estimatedearnings | Accumulatedrealizedearningsuptotheendofthereportperiod | Reasonsforunreachedplanningscheduleandestimatedearnings | Disclosuredate(ifhave) | Disclosureindex(ifhave) |
| YantaiChangyuInternationalWineCityBlendingandCoolingCenter | Self-constructed | Yes | Liquorandalcoholicbeveragesector | 5,780,000 | 1,705,784,100 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | PleaserefertoResolutionAnnouncementofSeventhSessionBoardofDirectors4thMeeting,Resolution |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
AnnouncementofSeventhSessionBoardofDirectors
th
Meeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors
th
Meeting,ResolutionAnnouncementofEighthSessionBoardofDirectors
th
Meeting,ResolutionAnnouncementofEighthSessionBoardofDirectors
th
MeetingandResolutionAnnouncementofNinthSessionBoardofDirectors5
th
MeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesand
| YantaiChangyuInternationalWineCityBottlingCenter | Self-constructed | Yes | 1,150,000 | 1,136,520,000 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | AnnouncementofSeventhSessionBoardofDirectors8thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors10thMeeting,ResolutionAnnouncementofEighthSessionBoardofDirectors4thMeeting,ResolutionAnnouncementofEighthSessionBoardofDirectors11thMeetingandResolutionAnnouncementofNinthSessionBoardofDirectors5thMeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesand | |
| OakBarrelProcurementProject | Self-constructed | Yes | 29,220,000 | 207,854,200 | Ownedfund | 95% | 0 | 0 | — | 2021.04.28 | ||
| IntellectualizedUpgradeandRenovationProjectofChangyuWineCultureMuseum | Self-constructed | Yes | 10,000,000 | 60,113,000 | Ownedfund | 100% | 0 | 0 | — | 2022.04.27 | ||
| InfrastructureimprovementprojectofChangyuIndustrialPark | Self-constructed | Yes | 0 | 0 | Ownedfund | 100% | 0 | 0 | — | 2022.04.27 |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
CNINFO(http://www.cninfo.com.cn/)
| CNINFO(http://www.cninfo.com.cn/) | ||||||||||||
| Total | -- | -- | -- | 46,150,000 | 3,110,271,300 | -- | -- | 0 | 0 | -- | -- | -- |
(4)Financialassetsinvestment
①Securityinvestmentsituation□Available?NotavailableTherearenosecurityinvestmentsfortheCompanyduringthereportperiod.
②Derivativesinvestment
□Available?NotavailableTherearenoderivativesinvestmentsfortheCompanyduringthereportperiod.
(5)Theusagesituationofraisedcapital□Available?NotavailableTherearenousagesituationsofraisedcapitalfortheCompanyduringthereportperiod.
8.Saleofsignificantassetsandequities
(1)Saleofsignificantassets?Available?NotavailableThereisnosaleofsignificantassetsduringthereportingperiod.
(2)Saleofsignificantequities
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
?Available?Notavailable
Counter
party
| Counterparty | Soldequity | Saledate | Transactionprice(CNY’0000) | Theequitycontributedtothenetprofitofthelistedcompanyfromthebeginningofthecurrentperiodtothedateofsale(CNY’0000) | Theimpactofthesaleonthecompany | Theproportionofthenetprofitcontributedbyequitysaletothetotalnetprofitofthelistedcompany | Equitysalepricingprinciples | Whetheritisarelatedtransaction | Theassociatedrelationshipwiththecounterparty | Whetheralltheequityinvolvedhavebeentransferred | Whetheritisimplementedasplanned;Ifitisnotimplementedasplanned,explainthereasonsandthemeasurestakenbythecompany | Disclosuredate | Disclosureindex |
| LangfangDaxuanTradingCo.,Ltd. | TheequityofLangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd. | 2023.12.19 | 2,228.88 | -120 | TheCompanywillspeedupthedisposalofidleassets,reduceassetimpairmentlosses,betterrecoverfunds,optimizeassetstructureandimproveoperationefficiencythoughthisequitytransaction | 0% | Negotiatedpricing | No | - | Yes | Yes | 2023.11.10 | TheAnnouncementonEquityTransferofLangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd.(2023Interim-031)disclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/) |
9.Analysisofmainholdingandjointstockcompanies?Available?NotavailableSituationofmainsubsidiariesandjointstockcompaniesaffectingover10%oftheCompany’snetprofit
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Unit:CNY
Companyname
| Companyname | Companytype | Mainbusiness | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| YantaiChangyuPioneerWineSalesCo.,Ltd. | Subsidiary | Sales | CNY8million | 581,183,436 | 81,160,443 | 2,894,335,691 | 386,570,018 | 326,400,726 |
| YantaiChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY5million | 317,295,336 | 283,301,622 | 1,140,824,471 | 205,789,026 | 154,394,694 |
| ChangyuTradingCo.,Ltd.inDevelopmentZoneofYantai | Subsidiary | Sales | CNY5million | 92,008,680 | 15,263,030 | 213,653,045 | 81,185,733 | 60,768,161 |
| LaizhouChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY1million | 66,295,721 | 1,077,871 | 293,739,285 | 60,622,706 | 45,467,030 |
Acquisitionanddisposalofsubsidiariesduringthereportperiod?Available?Notavailable
| Companyname | Acquisitionanddisposalofsubsidiariesduringthereportingperiod | Impactonoverallproduction,operationandperformance |
| LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd. | Saleofequity | TheCompanywillspeedupthedisposalofidleassets,reduceassetimpairmentlosses,betterrecoverfunds,optimizeassetstructureandimproveoperationefficiencythoughthisequitytransaction |
ExplanationonmainholdingandjointstockcompaniesYantaiChangyuPioneerWineCo.,Ltd.,YantaiChangyuPioneerWineSalesCo.,Ltd.andFrenchVASFCompanytransferred100%equityofLangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd.theyholdtoLangfangDaxuanTradingCo.,Ltd..
10.SituationofthestructuredsubjectscontrolledbytheCompany□Available?Notavailable
11.ExpectationfortheCompany’sfuturedevelopmentOnthebasisofourlimitedexperienceandprofessionalskills,theCompanymakesthefollowingjudgmentsonthewineindustryandfuturedevelopment:
(1)ThesectorcompetitionpatternanddevelopmenttrendIn2024,affectedbytheincreaseduncertaintycausedbyvariousfactors,people’sconsumptionsentimentwillbemorecautious;coupledwiththestrongsqueezefromotheralcoholicproducts,thegrowthindomesticwineconsumptionwillbeverydifficult.Mostwineenterprisesaresmall,ownpoorprofitability,andareunabletocultivatethemarket,hencethewholeindustryisstilldifficulttogetoutofthetrough.
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Althoughthedevelopmentofthewineindustryiscurrentlyencounteringsomedifficulties,therearealsolotsofpositivefactors.PresidentXIJinpingpointedoutthat‘China’swineindustryhasgreatprospects’whenheinspectedNingxia;Thelocalgovernmentsofeachwine-producingregionareactivelyrespondingtosupportthedevelopmentofthewineindustry;Therearemanyhigh-net-worthindividualsinChina,bringingalargebaseofhigh-enddemand,andtheatmosphereofwineconsumptionandtheperceptionofthefactthatwineishealthyaregraduallyforming;Youngandtrendydrinkersareontherise,beginningtoinfluencethefuturedevelopmenttrendofwineconsumption;Withtheriseofthenationaltide,theconsumptionofdomesticgoodshasgraduallybecomeafashion;Inthelongrun,thehugedevelopmentpotentialofdomesticwineshasnotchangedandtheindustrywillcontinuetofocusoncorebrands.Insuchacaseoflong-termcoexistenceofopportunitiesandchallenges,asalways,theCompanybelievesthatthoseenterprisesthatpossessstrongbrandinfluenceandmarketingability,catchtheopportunities,activelytakeadjustments,makefulluseofnewlyemergingandtraditionalsaleschannels,makeeffortstoguideandcultivatewineconsuminggroups,timelysatisfytheconsumers’demandsandprovideproductswithhighcostperformance,willhavetheopportunitytobethefinalwinnerofcompetitions,forminganewpatternofthefutureChinesewinemarket.
(2)TheCompany’sdevelopmentstrategyTheCompanywilladheretothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonlargesingleproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,followtheworkguidelineof“invariabledirection,unweakenedstrength,partialimprovement,continuousinnovation”,givefullplaytoownadvantages,andstrivetoachievevariousoperatingtargets.
(3)ManagementplanforthenewyearIn2024,theCompanywilltryitsbesttorealizeoperatingrevenueofnotlessthanCNY4.7billionandcontrolthemainoperatingcostsandthreeperiodexpensesbelowCNY3.7billion.
(4)MeasurestobeadoptedbytheCompanyInthenewyear,thedevelopmentofthewineindustryisstillnotoptimistic.TheCompanywillleadanduniteallemployees,enhanceconfidence,facechallenges,overcomedifficulties,focusontargetindicators,anddoallthebesttoseekdevelopment.Thecompanywillmainlydothefollowingwork.First,itistocontinuetoadvocateandcarryforwardthespiritofservice,thespiritofingenuityandthespiritoffairnessinthewholecompany.TheCompanywillplaytheroleof“waiter”wellandfirmlyestablishthe“totallycustomer-centric”conceptsoastobettersatisfyconsumers;continuetocarryforwardthespiritof“ingenuity”,andconstantlyimproveproductquality;sticktothebottomline,donottouchtheredline,andconducttheunselfishandstrictmanagement.Second,itistoadheretothe“threeguarantees,onepromotion”.TheCompanywillresolutelydowellintheinvestigationandmanagementofmajoraccidents,increasesafetyinspectionand
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
assessmenteffortstoensuresafeproduction;adhereto“themoststrictmanagementsystem,themostrigorouspreventivemeasures,themostseverepunishment”toensureproductqualityandsafety;adheretotheorderdriven,balancetheoff-peakseasonorders,toensurethattheproductionperformancerateissteadilyimproved;adheretocompetewithtargetedproducts,activelylistentomarketfeedback,givefullplaytotheroleofthewinemakersystem,andfurtherimproveproductquality.Third,itistoreducethescaleofassetsandstrengthentheassessmentofprofits.TheCompanywillcontinuetostrictlycontrolcapitalexpenditureandpromotethedisposalofidleassets;continuetostrengthentheprofit-orientedperformanceassessmentandtheassessmentinthecomprehensivegrossmarginandmainproducts’grossmargin,strivingtoachievestableprofitgrowth.Fourth,itistofurtherimprovethesalesdivisionsystem.Thebusinessdivisionsinvolvinghigh-endproductswillvigorouslypromotethebreakthroughofcertaincircles,adheretosearchformulti-shareholder,cross-borderandempowered,andadheretofocusontastingmeetings,chateautoursandotherdirectandeffectivecircle-marketingmethods,inordertocultivatebrandsupportersandexpandproductconsumergroups;NobleDragonDivisionwillcontinuetocarryoutbanquet-basedmarketingandpromotion,focusmoreonmarketshare,andactivelypromoteproductsintocommunitystoresandconcentratedareasofcollegesanduniversitiestoexpandthewine“cake”;BrandyDivisionwillincreasethemarketingofKoyaandLiquanproductssoastomakebrandytrulybecomeaboosterforthedevelopmentoftheCompany;OnlineDivisionwilldothebesttoincreasethesalesofsparklingwine,portwine,Vermouthandrhizomapolygonatialcoholicproduct,cultivatenewgrowthpoints,adheretotheprincipleof“differentspecificationsinsamebrand,differentproductsindifferentbrands”,inordertorealizethesupplementofonlineandofflinesales;TourismDivisionwillfocusonbusinessdevelopmentandenhancetheexperienceoftourists(customers)atthesametime,maketouristsbecomecustomers,paycloseattentiontonewformsoftourism,andstrengthencooperationwithinfluentialtourismcompanies,soastoachievemutualdrainageandpromotethesalesofproprietaryproducts.Fifth,itistoincreaseproductinnovationandmanagementinnovation,andstrivetoachievenewbreakthroughsinvariouswork.TheCompanywillestablishandimprovetheoperationsystemoflow-degreewineandnewLiquanbrandyproducts.Tolow-degreewine,theCompanywilladopt“newproducts,newsystem,newteam,newscene”andstrivetomakethewinemarketbigger;tonewLiquanbrandyproducts,theCompanywilltakedeepcultivationinShandongmarket,expandShandongandGuangdongmarket,tolaythefoundationforbrandystructureadjustmentandscaleexpansion.With“ChineseTerroir,ChangyuStyle,WorldQuality”asthequalityorientation,theCompanywillmakein-depthresearchonChineseterroir(producingarea),Chinesetechnology,ChineseexpressionandChineseculture,strengthenproductinnovationaswellasdevelopmentandproductionof“Chinesecharacteristics”products.ItwillalsodowellintheimplementationoftheCompany’srestrictedshareincentiveplantogivebetterplaytothelong-termincentivemechanismofequityandstimulatethevitalityofenterprisedevelopment;optimizetheshareholdingstructureofoverseasenterprisestopromotethedevelopmentofenterprises;establisha“mutualassistance”relationshipintechnology,equipmentandpersonnelbetweenYantailocalenterprisesandoff-sitechateaux,makeoverallconsiderationandcomprehensivepolicies,givefullplaytoproductionsynergies,andimprovepercapitalworkefficiency;increasetherecruitmentandintroductionof
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
middle-and-above-levelpersonnel,especiallycitymanagersandprovincialmanagerswhoarehelpfulformarketcirclemarketingbreakthroughs,andexpandtheteamofinnovativemarketingtalents;makeinnovationinmediapublicity,dealwiththecurrentandlong-termrelationship,fullyintegratetherelationshipbetweenthe“Changyu”parentbrandandeachsub-brand,andfurtherenhancethebrandinfluenceofcentury-oldChangyu;solvetheproblemof“landing”ofthebrandand“reaching”ofcoreconsumers.
(5)Potentialrisks①RiskinpricefluctuationofrawmaterialsGrapesaretheCompany’smainrawmaterials.Thegrape’syieldandqualityareaffectedtoacertainextentbythenaturalfactorssuchasdrought,wind,rain,frostandsnow.TheseforcemajeurefactorsgreatlyinfluencethequantityandpriceofthegrapesinthisCompanyordersandaddtheuncertaintytotheCompany’sproductionandoperation.Therefore,theCompanywilllowertherisksthatarelikelytoaffectgrapequalityandresultinpricefluctuationbymeansofexpandingtheself-runvineyards,strengtheningthevineyardmanagementandoptimizingthelayoutofvineyards.②RiskinuncertaintyofmarketinputandoutputTocopewiththecutthroatmarketcompetitionandtomeettheneedsformarketdevelopment,theCompanyhasinputmoreandmorecapitalinthemarketandthesalesexpensehastakenupahigherpercentagepointinthebusinessrevenue.Theinput-outputratiowillaffecttheCompany’soperatingresultstoagreatextentandtheriskthatsomeinvestmentsmaynotreachtheexpectationsislikelytooccur.Therefore,theCompanywillstrengthenmarketresearchandanalysis,enhancemarketforecastaccuracyandcontinuetoperfecttheinput-outputevaluationsystemtoensuretheinvestmentsinmarkettobesatisfactoryasexpected.③RiskinproducttransportTheCompany’sproductsarefragileandsenttodifferentplacesallovertheworld,mostlybysea,railwayandexpressway.Thepeakseasonofsalesisusuallyincoldwinterandclosetothespringfestivalwhenmarkethasagreatdemand.Atthattime,thenaturalandhumanfactorssuchasseriousshortageoftransportcapacityresultingfrombusyflowofpeopleandgoods,wind,snow,freezingaswellastrafficaccidentsmakethetransportdepartmentsdifficulttosendproductstomarketsintimeandsafely.Asaresult,itmakesthisCompanyhavetofacetherisksofmissingthepeakseasonofsales.Therefore,theCompanywilladoptallmethodspossiblelikemakingprecisesalespredictionandwelldesignedconnectionofproductionandsales,reasonablyarrangingproductionandtransportmeansandmakinguseofmoreavailablewarehousesindifferentplacestolowerthesekindsofrisks.④RiskininvestmentfaultsTheCompanyinvestedmanyprojectsinthepreviousperiodsandtheinvestmentamountswererelativelylarge.Forindividualproject,owingtotheinfluenceofvariousfactors,itledtohavetherisksoffacingwiththeinvestmentamountoutofbudgetorhardlytakingbacktheexpectedinvestmentearnings.TheCompanywilltakeanadequateargumentandscientificdecision-makingforinvestmentprojects,tryhardtoreduceandavoidinvestmentrisks.⑤RiskinexchangerateTheCompany’soverseassubsidiariesexportproductstomanydifferentcountriesandtheexportamountisrelativelylarge.Theremaybeexchangelossesorgainsduetoexchangeratefluctuation.
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
⑥OtherrisksDuringtheproductionandsalesoftheCompany’sproducts,itmaybeaffectedbyforcemajeuresuchaswars,typhoons,earthquakes,etc..
12.Activityregistrationformforreceptionsofresearch,communication,visitandotheractivitiesduringthereportperiod?Available□Notavailable
Receptiontime
| Receptiontime | Receptionplace | Receptionpattern | Typeofreceptionobject | Receptionobject | Maindiscussedcontentsandprovideddata | Basicsituationindexofreception |
| 2023.05.26 | ThemeetingroomoftheCompany | Fieldresearch | Institution | Mr.WeiliangTangfromBOCISecuritiesLimited,Mr.LeiKanfromNortheastSecurities,Ms.YuelangZhoufromChinaInternationalCapitalCorporationLimited,Ms.QingLifromRosefinchFundManagementCo.Ltd.,Mr.WeiYanfromFullgoalFundManagementCompanyLimitedandMs.MengWangfromPinganSecurities. | TherecentproductionandoperationsituationoftheCompany | TheRecordofInvestor-relationsActivitydisclosedonShenzhenStockExchange |
| 2023.05.26 | ThemeetingroomoftheCompany | Fieldresearch | Institution | Minorityshareholders | TherecentproductionandoperationsituationoftheCompany | TheRecordofInvestor-relationsActivitydisclosedonShenzhenStockExchange |
13.Implementationofthe“TheImprovementBothonQualityandReturn”actionplanWhetherthecompanydisclosedthe“TheImprovementBothonQualityandReturn”actionplan
□Yes?No
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
IV.CorporateGovernance
1.CurrentCorporateGovernanceSituationoftheCompany
(1)Aboutshareholdersandshareholders’meetingTheCompanyhassetuptheDeliberationRulesofShareholders’Meeting,andconvenedtheshareholders’meetingsinstrictaccordancewithrequirementsofstandardopinionsofshareholders’meeting,madethegreatefforttoprovideconvenientconditionsformoreshareholderstoparticipatetheshareholders’meeting,andensuredallshareholderstoenjoysameequityandwellexercisedtheirrights.TheCompanydrewgreatattentiontothecommunicationandexchangewithshareholders,activelyrespondedtheshareholders’inquiryandquestions,andwidelylistenedtothesuggestionsandcommentsfromshareholders.
(2)AbouttheCompanyandholdingshareholderTheCompanyhasindependentbusinessandself-managementcapacity,whichisindependentfromthecontrollingshareholdersinbusiness,staffs,assets,institutionsandfinance.TheBoardofDirectors,BoardofSupervisors,managementteamsandalsointernalinstitutionsareabletooperateindependentlyintheCompany.ThecontrollingshareholdersoftheCompanycouldregulatetheirbehaviorswithoutdirectlyorindirectlyinterferingintheCompany’sdecision-makingandbusinessactivitiesbeyondtheshareholder’smeeting;meanwhile,thereisnocaseofencroachingontheCompany’sassetsanddamagingtheinterestoftheCompanyandminorityshareholders.
(3)AboutthedirectorandboardofdirectorsTheCompanystrictlyappointsalldirectorsinlightofCorporationActandArticlesofAssociations.Thequalificationsofalldirectorsareinlinewiththerequirementsoflawsandregulations.InaccordancewiththerequirementsofCorporateGovernanceGuidelines,theCompanyhascarriedoutthecumulativevotingsysteminthedirectorselection.Atpresent,theCompanyhasfiveindependentdirectorsaccountingforaboveonethirdofalldirectors,andthenumberandpersonnelcompositionofboardofdirectorswasbasicallyinaccordwithrequirementsofregulationsaswellasArticlesofAssociations.AlldirectorsoftheCompanywereabletocarryoutworkinaccordancewiththeRulesofBoardofDirectors’ProcedureandWorkingRulesforIndependentDirectors,punctuallyattendedtheboardofdirectors’andshareholders’meetings,activelytookpartinrelevantknowledgetraining,werefamiliarwiththelawsandregulationsconcerned,hadadeepknowledgeandlongexperienceofpractitioners,andperformedtheirdutiesaccordingtothelawandregulations.TheBoardofDirectorsconvenedthemeetingscomplieswithrelevantlawsandregulations.
(4)AboutsupervisorandboardofsupervisorsTheCompanystrictlyelectedallsupervisorsinlightoftheproceduresstipulatedintheCorporationActandArticlesofAssociations.Atpresent,boardofsupervisorshasthreepeopleamongwhichonesupervisorisrepresentativeforstaff.Thenumberandcompositionofboardofsupervisormeettherequirementsofregulationsandlaws.AllsupervisorsoftheCompanycouldfollowtherequirement
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
ofRulesofBoardofSupervisors’Procedure,insisttheprincipleofresponsibilitytoallshareholders,seriouslyperformtheirduties,effectivelysuperviseandpresenttheirindependentopinionsonimportantissues,interrelateddeals,financialstatus,appointmentofanaccountingfirmandthedutyperformanceofdirectorsandmanagersoftheCompany.
(5)AboutperformanceevaluationandincentivesystemTheappointmentofmanagerswasopenandtransparent,andaccordedwithlawsandregulations.TheCompanyhasestablishedandgraduallyimprovedtheperformanceevaluationstandardandformedefficientincentivesystem,soastoensurethesalaryofstafftobelinkedwithworkperformance.
(6)AboutinterestedpartiesTheCompanycouldfullyrespectandsafeguardthelegalrightsofthepartywithrelevantbenefit,cooperateactivelywiththeinterestedparties,jointlydrivetheCompanytodevelopcontinuallyandstably,paygreatattentiontotheissuessuchaslocalenvironmentalprotectionandpublicutilitiesetc.,andfullyassumetheduesocialresponsibility.
(7)AbouttheinformationdisclosureandtransparencyTheCompanyhasappointedtheboardsecretarytoberesponsibleastheheadofinvestorrelationmanagementincludinginformationdisclosure,investorrelationsmanagementandreceptionofshareholders’visitandconsultation.TheCompanyhasalsoassignedChinaSecuritiesNewspaper,SecuritiesTimes,HonkongCommercialDailyandwebsitehttp://www.cninfo.com.cn/todiscloseinformation,punctually,accuratelyandtrulydisclosedanyinformationinthelightofrequirementofrelevantlawsandrules,andalsoensuredallshareholderstohavesameopportunitytoacquireanyinformation.InordertofurtherperfecttheCompany’sgovernancesystem,duringthereportperiod,theCompanyformulatedOpinionsonStrengtheningtheManagementofFoodSafetyatProductionSitesandProvisionsonImplementingtheSupervisionandManagementofFoodSafetyMainBodyResponsibility,revisedandimprovedseveralrulesandregulationssuchasMeasuresfortheAdministrationofLaborContracts.WhetherornotthereissignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandlaws,administrativeregulationsandtheregulationsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
□Yes?NoThereisnosignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandlaws,administrativeregulationsandtheregulationsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
2.Relativetothecontrollingshareholderandactualcontroller,independenceoftheCompanyonensuringthecompany’sassets,personnel,finance,organization,business,etc.
(1)PersonnelArrangementTheCompany’sgeneralmanager,deputygeneralmanagersandotherseniorofficers,allofwhomwerepaidbytheCompanyanddidnotholdanyconcurrentadministrativeranksinthecontrolling
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
units.TheCompanywasentirelyindependentinpersonnelarrangement,conclusionandadjustmentoflaborcontractsthankstoitssoundandindependentsystemforlabor,personalandsalarymanagement.
(2)AssetsTangibleassetsandIntangibleassetsincludingtrademark,industrialpropertyrightandnon-patenttechnologieswereallclearlydividedbetweentheCompanyandthecontrollingshareholders,andalllegalformalitieswerecompleted.Asanindependentlegalentity,theCompanyoperatesindependentlyinaccordancewiththelaw,anddoesnotprovideanyformofguaranteewithitsassetsforshareholders’orindividuals’liabilitiesorotherlegalornaturalpersons.Duetothehistoricalissues,theownershipoftrademarkssuchas“张裕”(Changyu)thattheCompanyispermittedtousethatarestillremainedwiththecontrollingshareholder.Exceptforaverysmallnumberoftrademarkssuchas“张裕”(Changyu),theCompanyhasownershiprightsofthevastmajorityoftrademarksbeingusedbytheCompany,whichensurestheindependenceandcompletenessoftheCompany’sassets.
(3)FinanceTheCompanyisequippedwithindependentfinancedepartment,financialadministratorandfinancialandaccountingstaff,aswellasacomplete,independentandstandardizedfinancialaccountingsystem.TheCompanyalsoopeneditsownbankaccounts,independentandlegallypayingtaxesandworkersinsurancefund.Allfinancialindividualsdonotholdanyconcurrentpostsinassociatedcompaniesandareabletomakefinancialdecisionsindependently.TheCompanyhasitsownauditdepartment,whichisespeciallyresponsiblefortheinternalauditworkoftheCompany.
(4)IndependentInstitutionsTheCompanyhassetupasoundorganizationalframework,inwhichtheBoardofDirectorsandBoardofSupervisorsoperateindependently,nosuperiorandsubordinaterelationshipexistsbetweenthefunctionaldepartmentsofthecontrollingshareholder.TheCompanyhasitsownindependentproduction&businessoffices,andallfunctionaldepartmentsareindependenttoexercisetheirpowersandcarryouttheproductionandbusinessactivitiesindependently.
(5)OperationsTheoperationsoftheCompanyareindependentofthecontrollingshareholders.TheCompanyownsitselfcompletelyindependentsystemscoveringresearchanddevelopment,financialaccounting,laborandhumanresource,qualitycontrol,rawmaterialspurchase,productionandsales,hastheindependentmanagementability,anddoesnothavetheproblemthatentruststhecontrollingshareholderstobuyandselloncommission,norexistthehorizontalcompetitionwithcontrollingshareholders.
3.SituationforHorizontalCompetition□Available?Notavailable
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
4.Informationfortheshareholders’meetingandinterimshareholders’meetingheldduringthereportperiod
(1)Informationfortheshareholders’meetingduringthereportperiod
Session
| Session | Meetingtype | Participationratioofinvestors | Conveningdate | Disclosuredate | MeetingResolution |
| 2022AnnualShareholders’Meeting | AnnualShareholders’Meeting | 60.77% | 2023.05.26 | 2023.05.27 | Accordingtothevotingresults,themeetingdeliberatedandapprovedthe2022AnnualBoardofDirectors’WorkReport,2022AnnualBoardofSupervisors’WorkReport,2022AnnualReport,Proposalon2022AnnualProfitDistribution,Proposalon2023AnnualFinancialBudget,ProposalonAppointingCertifiedPublicAccountantsFirm,Proposalonthe“Company’sRestrictedShareIncentivePlanin2023(Draft)”andAbstract,ProposalonFormulatingtheCompany’s“AssessmentManagementMethodofRestrictedShareIncentivePlanin2023”andProposalonAuthorizationofShareholders’MeetingtoBoardofDirectorstoPromoteIssuesRelevantwiththeCompany’sRestrictedShareIncentivePlanin2023bydisclosedballot. |
(2)Requestforconveninginterimshareholders’meetingbypreferredshareholdersowingrecoveredvotingright□Available?Notavailable
5.SituationforDirectors,Supervisors,SeniorExecutivesandStaff
(1)Changesinshareholdingsofdirectors,supervisorsandseniorexecutives
| Name | Gender | Age | Post | Status | Beginningdateoftenure | Endingdateoftenure | Sharesheldatthebeginningoftheperiod | Increasedsharesduringtheperiod | Decreasedsharesduringtheperiod | Otherchangesofsharesheld | Sharesheldattheendoftheperiod | Reasonsoftheincreaseanddecreasechangeofsharesheld |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
ZHOUHongjiang
| ZHOUHongjiang | M | 59 | Chairman | Incumbent | 2002.05.20 | 2025.05.28 | 37,800 | 241,800 | 279,600 | Secondarymarketpurchasesandwasgrantedrestrictedshares | |
| SUNJian | M | 57 | Director | Incumbent | 2019.05.17 | 2025.05.28 | 90,000 | 240,000 | 330,000 | Secondarymarketpurchasesandwasgrantedrestrictedshares | |
| LIJiming | M | 57 | Director | Incumbent | 2019.05.17 | 2025.05.28 | 160,000 | 160,000 | Wasgrantedrestrictedshares | ||
| CHENDianxin | F | 57 | Director | Incumbent | 2019.05.17 | 2024.02.22 | |||||
| AldinoMarzorati | M | 71 | Director | Incumbent | 2006.12.07 | 2025.05.28 | |||||
| JIANGJianxun | M | 57 | Director | Incumbent | 2022.05.27 | 2025.05.28 | 160,000 | 160,000 | Wasgrantedrestrictedshares | ||
| StefanoBattioni | M | 65 | Director | Incumbent | 2022.05.27 | 2025.05.28 | |||||
| EnricoSivieri | M | 55 | Director | Incumbent | 2019.05.17 | 2025.05.28 | |||||
| CHIANGYun | F | 56 | Director | Incumbent | 2020.06.19 | 2025.05.28 | |||||
| DUANChangqing | M | 59 | Independentdirector | Incumbent | 2019.05.17 | 2025.05.28 | |||||
| LIUHuirong | F | 60 | Independentdirector | Incumbent | 2019.05.17 | 2025.05.28 | |||||
| LIUQinglin | M | 60 | Independentdirector | Incumbent | 2019.07.02 | 2025.05.28 | |||||
| YURenzhu | M | 45 | Independentdirector | Incumbent | 2020.05.27 | 2025.05.28 | |||||
| WANGZhuquan | M | 58 | Independentdirector | Incumbent | 2022.05.27 | 2025.05.28 | |||||
| LENGBin | M | 61 | ChairmanoftheBoardofSupervisors | Incumbent | 2022.05.27 | 2025.05.28 | |||||
| LIUZhijun | M | 43 | Supervisor | Incumbent | 2016.05.26 | 2025.05.28 | |||||
| ZHENGWenping | F | 55 | Supervisor | Incumbent | 2022.05.27 | 2025.05.28 | |||||
| SUNJian | M | 57 | Generalmanager | Incumbent | 2018.01.10 | 2025.06.10 |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
LIJiming
| LIJiming | M | 57 | Deputygeneralmanager | Incumbent | 2019.05.28 | 2025.06.10 | ||||||
| JIANGHua | M | 60 | Deputygeneralmanager | Incumbent | 2001.09.14 | 2025.06.10 | 10,000 | 160,000 | 170,000 | Wasgrantedrestrictedshares | ||
| PENGBin | M | 57 | Deputygeneralmanager | Incumbent | 2018.01.10 | 2025.06.10 | 160,000 | 160,000 | Wasgrantedrestrictedshares | |||
| JIANGJianxun | M | 57 | DeputygeneralmanagerandBoardsecretary | Incumbent | 2019.05.28 | 2025.06.10 | ||||||
| PANJianfu | M | 48 | Generalmanagerassistant | Incumbent | 2018.04.19 | 2025.06.10 | 100,000 | 100,000 | Wasgrantedrestrictedshares | |||
| KONGQingkun | M | 51 | Generalmanagerassistant | Incumbent | 2022.06.09 | 2025.06.10 | 100,000 | 100,000 | Wasgrantedrestrictedshares | |||
| LIUShilu | M | 49 | Generalmanagerassistant | Incumbent | 2018.04.19 | 2025.06.10 | 100,000 | 100,000 | Wasgrantedrestrictedshares | |||
| XIAOZhenbo | M | 47 | Generalmanagerassistant | Incumbent | 2018.04.19 | 2025.06.10 | 100,000 | 100,000 | Wasgrantedrestrictedshares | |||
| Total | -- | -- | -- | -- | -- | -- | 137,800 | 1,521,800 | 0 | 0 | 1,659,600 | -- |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Isthereanyresignationofdirectorsandsupervisorsanddismissalofseniormanagementpersonnelduringtheirtermofofficeduringthereportingperiod?Yes?NoChangesofdirectors,supervisorsandseniormanagersofthecompany?Available?Notavailable
(2)SituationforworkexperienceTheprofessionalbackground,mainworkexperiencesandpresentpositionsoftheCompany’sdirectors,supervisorsandseniorexecutives①MembersofBoardofDirectorsMr.HongjiangZhou,male,59,Chinese,withdoctoraldegree,seniorengineer,usedtobetheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd.,theDeputyGeneralManager,theGeneralManagerandtheDeputyChairmanofYantaiChangyuPioneerWineCo.,Ltd..HeisincumbentastheChairmanofYantaiChangyuGroupCo.,Ltd.andtheboarddirectorandtheChairmanoftheCompanynow.Mr.JianSun,male,57,Chinese,MBA,usedtobetheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectorandtheGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectoroftheGroupCompany.Mr.JimingLi,male,57,Chinese,withdoctoraldegree,applicationresearcher,usedtobetheChiefEngineeroftheCompany.HeisincumbentastheboarddirectorandtheDeputyGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectoroftheGroupCompany.Mr.JianxunJiang,male,57,Chinese,MBAandaccountant,servedastheFinancialManageroftheCompanyfromMay20,2002toJanuary10,2018.Henowservesastheboarddirector,DeputyGeneralManagerandBoardSecretaryoftheCompany.Ms.DianxinChen,female,57,Chinese,withmasterdegreeofthePartySchool;fromJuly1985toFebruary2024,sheusedtoserveasstaffofYantaiChemicalPurchasingandSupplyStation,staffofYantaiStated-ownedAssetsAssessmentCenter,theDeputyDirectorofYantaiStated-ownedAssetsAssessmentCenter,theDeputySectionChiefofAssetsAssessmentManagementDepartmentinYantaiState-ownedAssetsBureau,theDeputySectionChiefofAssetsAssessmentManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,full-timeDeputySecretaryofPartybranchinYantaiState-ownedAssetsSupervisionandAdministrationCommission,theSectionChiefofPropertyManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,theDirectorofretiredcardersworkofficeandtheSectionChiefofPropertyManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,andtheDirectorofretiredcardersworkofficeinYantaiState-ownedAssetsSupervisionandAdministrationCommission.SinceOctober2018,shehasbeenservedastheDeputySecretaryofPartybranch,theGeneralManagerofYantaiGuofengInvestmentHoldingsGroupCo.,Ltd.andthedirectorofYantaiChangyuGroupCo.,Ltd.andtheCompany.SheresignedasadirectoroftheCompanyonFebruary22,2024.Mr.AldinoMarzorati,male,71,Italian,withbachelordegree,servescurrentlyastheGeneralManagerofIllvaSaronnoHoldingS.p.A,thememberoftheboardofdirectorsofsomebranchesundertheGroupCompany,andtheboarddirectorofChangyuGroupCo.,Ltd.andtheCompany.
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Mr.StefanoBattioni,male,65,Italian,graduatedwithabachelor’sdegree.HehasservedasaSeniorProductManagerofColgatePalmoliveinItaly,theMarketingDirectorofBarillaHolding,theInternationalMarketingDirectorandtheSpiritsBusinessUnitDirector-GeneralManagerofIllvaSaronnoS.p.A.(aspiritcompanyasawholly-ownedsubsidiaryofIllvaSaronnoHoldingS.p.A.).HeiscurrentlytheCEOofIllvaSaronnoS.p.A.andtheboarddirectorofChangyuGroupCo,.Ltd.andtheCompany.Mr.EnricoSivieri,male,55,Italian,withbachelordegree,servedsuccessivelyasthefinancialcontrollerofARNEGS.p.a.,thecommercialanalystofSPILLERSFOODSITALIAS.p.a.,thetradecontrollerofNestle’PurinaPetcareEurope,Europeanmarketing&salescontrollerofNestle’PurinaPetcareEurope,theEuropeansupplychaincontrollerofNestle’PurinaPetcareEurope,theSouthernEuroperegionalcontrollerofNestle’PurinaPetcareEuropeandtheDirectorofgroupfinancialcontrollingofIllvaSaronnoHoldingS.p.A.,andcurrentlyservingasamemberoftheboardofdirectorsforRoyalOakDistilleryLtd.andtheGeneralManagerofIllvaSaronnoHoldingS.p.A.,andtheboarddirectoroftheCompany.Ms.YunChiang,female,56,successivelyobtainedBachelorofSciencedegreeMagnaCumLaudefromVirginiaTech,Virginia,EMBAofTheKelloggSchoolofManagementatNorthWesternUniversity,USAandEMBAofTheGraduateSchoolofManagement,HongKongUniversityofScienceandTechnology,HongKong,China.SheusedtoactedasDirectoratAmericanInternationalGroup(AIG)directinvestmentteam,theManagingPartnerofPacificAllianceGroup(PAG).ShecurrentlyservesastheINEDandmemberofAuditCommitteeandNominationCommitteeinLasVegasSandsChina,theINEDandmemberofAuditCommittee,RemunerationsCommitteeandNominationCommitteeinGoodbabyInternationalHoldingLtd.,theINED,memberofAuditCommitteeandNominationCommitteeandChairladyofRemunerationsCommitteeinPacificCenturyPremiumDevelopmentsLtd.,theINEDandmemberofAuditCommitteeandHealth,SafetyandSecurityCommitteeinMerlinEntertainmentsplc.,theCEOandFoundingPartnerofProspereCapital,andtheboarddirectoroftheGroupCompanyandtheCompany.Mr.QinglinLiu,male,60,doctoraldegreeofManagement,Chinese,nooverseaspermanentresidence.HeiscurrentlyaprofessoranddoctoralsupervisorofEconomicsFacultyofShandongUniversity,theDirectorofInstituteforWorldEconomyStudiesofShandongUniversity,theExecutiveDeputyPresidentofShandongInstituteofDevelopmentofShandongUniversity,amemberofacouncilofChinaSocietyofWorldEconomics,anexecutivememberofacouncilofTheAssociationforCanadianStudiesinChinaandShandongYouthScholarsAssociation,amemberofacouncilofShandongAssociationforBusinessEconomicsandShandongPriceAssociation.HecurrentlyservesasanindependentdirectorofShandongXinnengTaishanPowerGenerationCo.,Ltd.,anindependentdirectorofWeihaiHuadongAutomationCo.,Ltd.,andanindependentdirectoroftheCompany.Mr.ChangqingDuan,male,59,Chinese,withdoctoraldegree,professor,doctoralandmaster’ssupervisor,andthenationalseniorwinemakerandseniorwinetaster.HecurrentlyservesasthechiefscientistofnationalgrapeindustrytechnologysystemandtheDirectorofWineProcessingKeyLaboratoryofMinistryofAgricultureandRuralAffairs.Meanwhile,heholdsconcurrentpostsoftheDirectorofChinaWineTechnologyCommittee,theDirectorofChinaWineandFruitWineExpertCommittee,theExecutivePresidentandtheSecretaryGeneralofGrapeandWineBranchofChineseHorticulturalSocietyandtheVicePresidentofChinaAgriculturalSocietyGrapeBranch.
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Hismajorresearchfieldsarethebasictheoreticalresearchandrelatedhighandnewtechnologyresearchanddevelopmentaswellasapplicationpromotionworkinthedirectionofsuitabilitybetweenecologyinproducingareaandgrapevarietyandliquorvariety,evolvementmechanismanddirectionalbrewingofwineflavorformation,grapefruitflavormetabolismregulationandproductflavorqualityevaluationandsoon.HeisacurrentindependentdirectoroftheCompany.Ms.HuirongLiu,female,60,Chinese,withdoctoraldegree,theformerDeputyDeanandDeanoftheInstituteofPoliticalScienceandLawofOceanUniversityofChina.SheusedtoserveasanindependentdirectorofSailunGroupCo.,Ltd.,LongdaMeatandSacredSunCo.,Ltd.andShandongSacredSunPowerSourcesCo.,Ltd..Currently,sheisasecond-levelprofessoranddoctoralsupervisorofOceanUniversityofChinaandwithadditionalpostasaresearcherofthe“BeltandRoadInitiative”JudicialResearchCenteroftheSupremePeople’sCourt,anexpertattheSupremePeople’sCourtforforeign-relatedcommercialandmaritimeactionexpertdatabase,theDeputyChairmanofthesixthShandongLawSocietyandtheDeputyDirectoroftheAcademicCommittee,andtheChairmanoftheQingdaoLaw-basedGovernmentResearchInstitute.HerresearchfieldsareInternationalLawandLegislativeScience.ShehaswonthetitleofShandongTopTenOutstandingYoungandMiddle-agedJurists,thethirdprizeofExcellentSocialScienceAchievementoftheMinistryofEducation,thethirdprizeofShandongExcellentSocialScienceAchievement,thesecondprizeofShandongExcellentPhilosophyandSocialScienceAchievement,thefirstprizeofExcellentAchievementofShandongEducationDepartmentandtheTopTalentinQingdaoCity.SheisacurrentindependentdirectoroftheCompany.Mr.RenzhuYu,male,45,Chinese,doctorofmanagement,high-leveltalentsofJinan,usedtoactastheDeputyDirectorofHuanglongNationalScenicAreaAdministrationinAbaprefectureofSichuanprovinceasamemberofthe18thdoctoralteamoftheCentralOrganizationDepartmentandtheCommunistYouthLeagueofChinaandalsoeveractedasmanagingdirectorofShandongAgriculturalEconomySociety.Currently,heservesasaprofessorandamastersupervisorinSchoolofBusinessAdministrationinShandongUniversityofFinanceandEconomics,themanagingdirectorofChineseMarketingAssociationofUniversitiesandanindependentdirectoroftheCompany.Mr.ZhuquanWang,male,58,Chinese,doctorofmanagement(accountancy),firstbatchofnationalaccountingacademicleadingpersonalsofFinancialDepartment,theentrantofaccountantmastercultivationprojectofFinancialDepartment,outstandingteacherofShandongprovince,GovernmentSpecialAllowanceexpert,actedasindependentdirectorfromMay13,2010toMay12,2013andfromMay23,2014toMay17,2019.NowheistheprofessorandthedoctoralsupervisorsoftheOceanUniversityofChinaandalsoholdsaconcurrentpostofindependentdirectoroftheCompanyandQingdaoDoubleStarCo.,Ltd..②MembersofboardofsupervisorsMr.BinLeng,male,61,Chinese,withmasterdegree,senioraccountant,usedtobetheDeputySectionChiefandtheSectionChiefofYantaiAuditBureau,theboarddirectorandtheChiefAccountantofYantaiChangyuGroupCo.,Ltd.andtheboarddirectorandtheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectorandtheGeneralManagerofYantaiChangyuGroupCo.,Ltd.andtheChairmanofBoardofSupervisoroftheCompany,withanadditionalpostoftheChairmanandGeneralManagerofYantaiZhongyaZhibaoMedicalHealthWineCo.,Ltd..
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Mr.ZhijunLiu,male,43,Chinese,bachelordegree;fromJuly2003toFebruary2019,heusedtoserveasthestaffofworkedinforeignfunddepartmentofEconomyandTradeBureauinLongkouEconomicDevelopmentZone,anewssectionmemberofpropagandadepartmentinLongkouMunicipalCommittee,amemberofpropagandaandmassworksection,amemberofplanningsection,theDeputyDirectorMemberofprogrammingdevelopmentandenterprisedistributionsection,theDeputyDirectorMemberandtheDeputyChiefofprogrammingdevelopmentsection,thesupervisor(sectionchiefrank)oftheDongfangElectronicsCorporationCo.,Ltd.,ShandongLaidongEngineCo.,Ltd.andYantaiPublicTransportationGroupCo.,Ltd.,andasectionchiefrankofYantaiMunicipalAuditBureau;fromMarch2019toJune2020,heservedasthehadoftheequitymanagementdepartmentofYantaiGuofengInvestmentHoldingsGroupCo.,Ltd.;fromJune2020topresent,heservesasamemberofthePartyCommitteeandthedeputygeneralmanagerofYantaiGuofengInvestmentHoldingsGroupCo.,Ltd.HenowisasupervisoroftheCompany.Ms.WenpingZheng,female,Chinese,55,bachelordegree.ShenowisasupervisoroftheCompany.③OtherseniorexecutivesMr.HuaJiang,male,60,Chinese,masterdegree,seniorengineer,hasbeenservingastheDeputyGeneralManageroftheCompanysinceSeptember14,2001.Mr.BinPeng,male,57,MBA,seniorengineer,eversuccessivelyservedastheDepartmentChiefofTechnicalTransformationDepartmentandtheMinisterofInvestmentandDevelopmentDepartmentoftheCompany,aswellastheGeneralManagerAssistantofYantaiChangyuGroupCo.,Ltd..HecurrentlyservesastheDeputyGeneralManageroftheCompany.Mr.JianfuPan,male,48,Chinese,MBAandsenioreconomist,usedtoserveastheGeneralManageroftheJiangxiBranchoftheCompany,theGeneralManageroftheShanghaimarketingmanagementcompanyandtheGeneralManagerofBeijingmarketingmanagementcenter.Currently,heisaGeneralManagerAssistantoftheCompanyandtheGeneralManagerofBeijingmarketingmanagementcenterandBeijingChateauAFIP.Mr.QingkunKong,male,51,Chinese,MBAandeconomist,usedtoserveasasectionmemberofproductiondepartmentinthehealthyliquorbranchoffice,aclerkandtheDeputyDirectorandtheDirectorofgeneralmanageroffice,andthechairmanoftheCompany’sBoardofSupervisor.Currently,heservesasaGeneralManagerAssistantoftheCompany.Mr.ShiluLiu,male,49,Chinese,masterdegree,usedtobetheManagerofTianjinbranchoftheCompany,theCompetenceManagerofNorthChinamarket,theGeneralMangerofBeijingmarketingmanagementcompany,theGeneralManagerofGuangdongmarketingmanagementcenterandtheGeneralManagerofe-commercebranchoftheCompany.Currently,heservesastheGeneralManagerAssistanceoftheCompanyandtheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd..Mr.ZhenboXiao,male,47,Chinese,MBA,servedastheDeputyManageroftheCompany’smarketstrategydevelopmentcenter,theGeneralManagerofShandongmarketingmanagementcompanyandYantaiChangyuliquorcompany.HecurrentlyservesastheGeneralManagerAssistantoftheCompany.Postintheshareholder’scompany?Available□Notavailable
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Name
| Name | Shareholder’sCompany | Post | Beginningdateofthepost | Endingdateofthepost | Paidbyshareholder’scompanyornot |
| ZHOUHongjiang | YantaiChangyuGroupCo.,Ltd. | Chairman | 2018.01.10 | 2026.01.11 | No |
| LENGBin | YantaiChangyuGroupCo.,Ltd. | Director&Generalmanager | 2018.01.10 | 2026.01.11 | Yes |
| SUNJian | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| LIJiming | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| CHENDianxin | YantaiChangyuGroupCo.,Ltd. | Director | 2018.11.15 | 2023.12.11 | No |
| AldinoMarzorati | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| EnricoSivieri | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2026.01.11 | No |
| StefanoBattioni | YantaiChangyuGroupCo.,Ltd. | Director | 2020.04.09 | 2026.01.11 | No |
| CHIANGYun | YantaiChangyuGroupCo.,Ltd. | Director | 2020.05.12 | 2026.01.11 | No |
| Explanationforthepostintheshareholder’scompany | Mr.BinLengalsoholdsconcurrentpostastheChairmanandGeneralManagerofYantaiZhongyaZhibaoMedicalHealthWineCo.,Ltd.. | ||||
Postatothercompanies
□Available?NotavailableDisciplinaryactionstakenbysecuritiesregulatorsinrecent3yearstotheCompany’sdirectors,supervisorsandseniormanagementbothonthejobandleftduringthereportperiod?Available?NotAvailable
(3)Salaryofdirectors,supervisorsandseniorexecutivesThesituationofdecision-makingprocess,thebasisofdeterminationandtheactualpaymentofremunerationfordirectors,supervisorsandseniorexecutivesThesalaryfortheindependentdirectorsispaidaccordingtotheresolutionofshareholders’meeting.Thesalaryforthechairman,directorswithadministrationduty,managersandotherseniormanagementshouldbepaidonbasisoftheevaluationresultaccordingtotheYantaiChangyuPioneerWineCo.,Ltd.ExecutiveCompensationandPerformanceDesign,whichwaspassedduringtheBoardofDirectors’meeting.Salaryofdirectors,supervisorsandseniorexecutivesduringthereportperiod
Unit:CNY’0000
| Name | Gender | Age | Post | Status | TotalrewardfromtheCompanybeforetax | WhethergetrewardfromrelatedpartiesoftheCompany |
| ZHOUHongjiang | M | 59 | Chairman | Incumbent | 179.43 | No |
| SUNJian | M | 57 | DirectorandGeneralManager | Incumbent | 166.3 | No |
| LIJiming | M | 57 | DirectorandDeputyGeneralManager | Incumbent | 127.78 | No |
| JIANGJianxun | M | 57 | Director,DeputyGeneralManagerandBoardsecretary | Incumbent | 124.96 | No |
| CHENDianxin | F | 57 | Director | Incumbent | 0 | Yes |
| AldinoMarzorati | M | 71 | Director | Incumbent | 0 | No |
| StefanoBattioni | M | 65 | Director | Incumbent | 0 | No |
| EnricoSivieri | M | 55 | Director | Incumbent | 0 | No |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
CHIANGYun
| CHIANGYun | F | 56 | Director | Incumbent | 0 | No |
| DUANChangqing | M | 59 | IndependentDirector | Incumbent | 10 | No |
| LIUHuirong | F | 60 | IndependentDirector | Incumbent | 10 | No |
| LIUQinglin | M | 60 | IndependentDirector | Incumbent | 10 | No |
| YURenzhu | M | 45 | IndependentDirector | Incumbent | 10 | No |
| WANGZhuquan | M | 58 | IndependentDirector | Incumbent | 10 | No |
| LENGBin | M | 61 | ChairmanoftheBoardofSupervisor | Incumbent | 0 | Yes |
| ZHENGWenping | F | 55 | Supervisor | Incumbent | 30.33 | No |
| LiuZhijun | M | 43 | Supervisor | Incumbent | 0 | Yes |
| JIANGHua | M | 60 | DeputyGeneralManager | Incumbent | 134.07 | No |
| PENGBin | M | 58 | DeputyGeneralManager | Incumbent | 130.11 | No |
| PANJianfu | M | 48 | GeneralManagerAssistant | Incumbent | 79.87 | No |
| KONGQingkun | M | 51 | GeneralManagerAssistant | Incumbent | 86.56 | No |
| LIUShilu | M | 49 | GeneralManagerAssistant | Incumbent | 84.11 | No |
| XIAOZhenbo | M | 47 | GeneralManagerAssistant | Incumbent | 91.07 | No |
| Total | -- | -- | -- | -- | 1,284.59 | -- |
Otherinformationnote?Available?Notavailable
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
6.Performanceofdirectorsduringthereportperiod
(1)Thesituationoftheboardofdirectors’meetingsduringthisreportingperiod
Thesessionofmeetings
| Thesessionofmeetings | Holdingdate | Disclosuredate | Meetingresolution |
| TheNinthSessionBoardofDirectors4thMeeting | 2023.01.16 | 2023.01.17 | ThemeetingdeliberatedandapprovedProposalonEquityTransferofChangyuIcewineCo.,Ltd.LiaoningasTransfereebydisclosedballot. |
| TheNinthSessionBoardofDirectors5thMeeting | 2023.04.11 | 2023.04.13 | Themeetingdeliberatedandapproved2022AnnualBoardofDirectors’WorkReport,2022AnnualGeneralManager’sWorkReport,2022AnnualReport,DraftProposalon2022AnnualProfitDistribution,Proposalon2022AnnualPerformanceAssessmentResultoftheCompany’sSeniorExecutives,2022AnnualSelfAssessmentReportonInternalControl,2022AnnualSocialResponsibilityReport,ProposalonRelevantIssuesofConvening2022AnnualShareholders’Meeting,ProposalonAppointmentofCertifiedPublicAccountingFirm,Proposalon2023AnnualCapitalExpenditurePlan,Proposalon2023AnnualRoutineRelatedTransactionandProposalon2023AnnualFinancialBudgetbydisclosedballot. |
| TheNinthSessionBoardofDirectors6thMeeting | 2023.04.26 | 2023.04.28 | ThemeetingdeliberatedandapprovedProposalon2023FirstQuarterReport,ProposalontheCompany’s“RestrictedShareIncentivePlanin2023(Draft)”andAbstract,ProposalonFormulatingtheCompany’s“AssessmentManagementMethodofRestrictedShareIncentivePlanin2023”andProposalonAuthorizationofShareholders’MeetingtoBoardofDirectorstoPromoteIssuesRelevantwiththeCompany’sRestrictedShareIncentivePlanin2023bydisclosedballot. |
| TheFirstInterimBoardofDirectorsMeetingin2023 | 2023.06.26 | 2023.06.27 | ThemeetingdeliberatedandapprovedProposalonItemsofAdjustmentstoRestrictedShareIncentivePlanin2023andProposalonGrantingRestrictedSharestoIncentiveObjectsInvolvedinRestrictedShareIncentivePlanin2023bydisclosedballot. |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
TheNinthSessionBoardofDirectors7
thMeeting
| TheNinthSessionBoardofDirectors7thMeeting | 2023.08.29 | 2023.08.31 | Themeetingdeliberatedandapproved2023Semi-annualReport,Proposalon2023Semi-AnnualProfitDistribution,ProposalonDisposalofIdleOfficePropertyandProposalonProvidingGuaranteeforKilikanoonEstatePtyLtdinAustraliabydisclosedballot. |
| TheNinthSessionBoardofDirectors8thMeeting | 2023.10.26 | 2023.10.27 | Themeetingdeliberatedandapproved2023ThirdQuarterReportbydisclosedballot. |
| TheSecondInterimBoardofDirectorsMeetingin2023 | 2023.11.09 | 2023.11.10 | ThemeetingdeliberatedandapprovedProposalonEquityTransferofLangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd.bydisclosedballot. |
| TheThirdInterimBoardofDirectorsMeetingin2023 | 2023.12.12 | 2023.12.13 | ThemeetingdeliberatedandapprovedProposalonPartialEquityAcquisitionofKilikanoonEstatePtyLtdinAustraliabydisclosedballot. |
(2)Attendanceofdirectorsfortheboardofdirectors’andtheshareholders’meetings
| Attendanceofdirectorsfortheboardofdirectors | |||||||
| Name | Requiredattendancetime | On-siteattendance | Communicationattendance | Authorizedattendance | Absence | Whetherornottoattendthemeetingspersonallyforsuccessivetwice | Attendancetimefortheshareholders’meeting |
| ZHOUHongjiang | 8 | 4 | 4 | 0 | 0 | No | 1 |
| SUNJian | 8 | 4 | 4 | 0 | 0 | No | 1 |
| LIJiming | 8 | 4 | 4 | 0 | 0 | No | 0 |
| JIANGJianxun | 8 | 4 | 4 | 0 | 0 | No | 1 |
| CHENDianxin | 8 | 4 | 4 | 0 | 0 | No | 0 |
| AldinoMarzorati | 8 | 2 | 4 | 2 | 0 | No | 0 |
| StefanoBattioni | 8 | 3 | 4 | 1 | 0 | No | 0 |
| EnricoSivieri | 8 | 3 | 4 | 1 | 0 | No | 0 |
| CHIANGYun | 8 | 4 | 4 | 0 | 0 | No | 0 |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
LUOFei
| LUOFei | 8 | 4 | 4 | 0 | 0 | No | 0 |
| DUANChangqing | 8 | 4 | 4 | 0 | 0 | No | 0 |
| LIUHuirong | 8 | 4 | 4 | 0 | 0 | No | 0 |
| LIUQinglin | 8 | 4 | 4 | 0 | 0 | No | 1 |
| YURenzhu | 8 | 4 | 4 | 0 | 0 | No | 0 |
| WANGZhuquan | 8 | 4 | 4 | 0 | 0 | No | 0 |
ExplanationforfailedtopersonallyattendtheBoardofDirectors’meetingsforsuccessivetwotimesNo
(3)AnyobjectionsfortheCompany’sprojectsfromthedirectorsWhetherornotthedirectorsraisedanyobjectionfortheCompany’sprojects
□Yes?NoDuringthereportperiod,thedirectorsdidnotraiseanyobjectionsfortheCompany’sprojects.
(4)Otherexplanationsondirectors’performanceWhetherornotthedirectors’propositionsareacceptedbytheCompany?Yes□NoTheexplantiononthedirectors’propositionsareacceptedorarenotacceptedbytheCompanyThepropositionthattherelevantdirectorsoftheCompanyputforwardtheimplementationofequityincentiveforthecorebusinesspersonneloftheCompanyhasbeenadopted.
7.PerformanceofthespecialcommitteesundertheBoardofDirectorsduringthereportperiod
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Committees
name
| Committeesname | Members | Numbersofmeetingheld | Helddate | Meetingcontents | Importantcommentsandsuggestionsmade | Otherperformanceofduties | Specificcircumstancesoftheobjection(ifhave) |
| AuditingCommittee | DUANChangqing,LIUHuirong,LIUQinglin,YURenzhu,WANGZhuquan,CHENDianxin,JIANGJianxun,EnricoSivieri | 1 | 2023.04.11 | Themeetingdeliberatedandapprovedthe2022AnnualReport,DraftProposalon2022AnnualProfitDistribution,ProposalonAppointingCertifiedPublicAccountantsFirm,2022AnnualSelfAssessmentReportonInternalControland2023AnnualInternalAuditPlan. | Duringthereportingperiod,themembersoftheAuditCommitteeprovidedadviceandsuggestionsinguidingtheinternalauditwork,Appointinganexternalauditfirm,supervisingandevaluatingexternalauditinstitutions,establishinganeffectiveinternalcontrolsystemandpromptingmajorbusinessrisks,andactivelysafeguardedtheinterestsofthecompanyandallshareholders. | No | No |
| DUANChangqing,LIUHuirong,LIUQinglin,YURenzhu,WANGZhuquan,CHENDianxin,JIANGJianxun,EnricoSivieri | 1 | 2023.08.29 | Themeetingdeliberatedandapprovedthe2023Semi-AnnualReportandProposalon2023Semi-AnnualProfitDistribution. | Themembersoftheauditcommitteemadereasonablesuggestionsonthedistributionofprofits. | |||
| EmolumentCommittee | DUANChangqing,LIUHuirong,LIUQinglin,YURenzhu,WANGZhuquan,CHIANGYun,JIANGJianxun,AldinoMarzorati | 1 | 2023.04.11 | ThemeetingdeliberatedandapprovedtheProposalon2022AnnualPerformanceAssessmentResultsoftheCompany’sSeniorExecutives. | Duringthereportingperiod,theEmolumentCommitteeputforwardrelevantsuggestionsonfurtherstrengtheningtheperformanceassessmentofseniorexecutivesandprofitassessment. | No | No |
| DUANChangqing,LIUHuirong,LIUQinglin,YURenzhu,WANGZhuquan, | 1 | 2023.04.26 | ThemeetingdeliberatedandapprovedtheProposalontheCompany’s“RestrictedShareIncentivePlanin | Thecompetitioninthewineindustryisbecomingincreasinglyfierce,anditisnecessaryto |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
CHIANGYun,JIANGJianxun,AldinoMarzorati
| CHIANGYun,JIANGJianxun,AldinoMarzorati | 2023(Draft)”andAbstract,ProposalonFormulatingtheCompany’s“AssessmentManagementMethodofRestrictedShareIncentivePlanin2023”andProposalonVerifying“ListofIncentiveObjectsInvolvedinRestrictedShareIncentivePlanin2023ofYantaiChangyuPioneerWineCo.,Ltd.”. | increasetheincentivetomobilizetheenthusiasmofthemanagementteamandthecoremembers.Theincentiveplanshouldtakeintoaccountbothshort-termandlong-termfactorsandsettheperformanceindicatorsscientificallyandreasonably. |
8.TheworkoftheBoardofSupervisorsWhetherornottheBoardofSupervisorsfoundanyexistencerisktotheCompanyinoversightactivitiesduringthereportperiod□Yes?NoTheBoardofSupervisorshasnoobjectionstosupervisionmattersduringthereportperiod.
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
9.StaffoftheCompany
(1)Staffnumber,specialtyconstitutionandeducationdegree
Incumbentstaffnumberofparentcompanyattheendofreportingperiod(people)
| Incumbentstaffnumberofparentcompanyattheendofreportingperiod(people) | 654 |
| Incumbentstaffnumberofmajorsubsidiarycompaniesattheendofreportingperiod(people) | 1,534 |
| Totalincumbentstaffattheendofreportingperiod(people) | 2,188 |
| Totalstaffgettingpaidincurrentperiod(people) | 2,188 |
| Retiredstaffnumberwhoseexpensesareundertakenbyparentcompanyorsubsidiarycompanies(people) | 0 |
| Specialtyconstitution | |
| Category | Numberofpeople(people) |
| Productionstaff | 654 |
| Salesstaff | 1,053 |
| Technicalstaff | 127 |
| Financialstaff | 103 |
| Administrativestaff | 251 |
| Total | 2,188 |
| Educationdegree | |
| Category | Number(People) |
| Postgraduateandabove | 98 |
| Bachelor | 855 |
| JuniorCollege | 672 |
| TechnicalsecondaryschoolorSeniorhighschool | 398 |
| Juniorhighschoolandbelow | 165 |
| Total | 2,188 |
(2)RemunerationpolicyTheCompanyhasestablishedandimprovedtheremunerationandwelfaresystem,includingsalarysystem,incentivemechanism,socialsecurityandmedicalinsuranceandsoon,toensuretheparticipationofallemployees.Inaccordancewiththelaw,theCompanypurchasessocialendowmentinsurance,medicalinsurance,occupationalinjuryinsurance,unemploymentinsuranceandmaternityinsurance,andpayshousingfundfortheemployees.Basedontheprincipleof“distributionaccordingtoworkandequalpayforequalwork”,theCompanypaysthestaff’sremunerationtimely.WiththeimprovementoftheCompany’sprofitability,theCompanysteadilyimprovesthestaff’sremunerationandwelfare,andprovidesitsemployeesthecompetitivesalaryandequalopportunityfordevelopment.
(3)TrainingplanIn2024,theCompanyplanstoenhancethecorethemeof“leadershipandexecution”ofemployeesandcultivatemorekeyemployeeswith“highqualityandhighskills”basedontheenterprisespirit
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
of“patriotism,dedication,qualityandstrivingforexcellence”.TheCompanyplanstocustomizepersonalizedandsystematiccoursesfordifferentpositionsandmaintainquarterlytrainingforemployeesatalllevelsfor1-2times,eachtimefor1day,andensurethatthetrainingrateofemployeesoftheCompanycouldreachto100%duringtheyear.Enhancestrategiccoreleadershipforcorporate-levelleaders.Theplanistoimprovethepoliticalpositionoftheleadinggroupthroughtheformof“holdingmeetingsinsteadoftrainingandholdingthecentralgroupstudyoftheleadershipteam”.Byanalyzingthefrontiertrendsofthewineindustryatdomesticandabroad,timelyimplementationofenterprisereformtoachievehigh-qualityoperationofthecompany,andempowerthedevelopmentofthenationalwineindustry.Improveteamleadershipanddecision-makingabilityformiddle-levelmanagementpersonnel.Themiddle-levelmanagementpersonnellearnhowtoleadandmakedecisionsscientificallythroughvideocoursesandoutdooractivitiescombinedwithprofessionalbooks.Encouragemiddle-levelmanagementpersonneltoparticipateinuniversitycorrespondence,self-examinationorMBAandotheradvanceddegreestoensurethatthecompany’scadreteamtoadapttocorporatestrategicplanning,strengthendecision-makingandcoordinationabilitiesandbetterleadteammemberstowork.Improvetheirexecutiveabilityandinnovationforemployeeswhoselevelareorbelowsectionchief.Theplanistocombineon-sitetraining,onlineteaching,theoreticalself-studyandotherforms.Enhancethescenesimulationandpracticalabilityoftourism,technologyandskillpersonnelthroughon-sitetraining.Improvetheknowledgebaseofbusinessmodulesandcaseanalysisabilityofadministrativepersonnelthroughonlineteaching.Improveemployees’professionalknowledgereservelevelbytheoreticalself-study.Thetrainingfornewemployeesismainlybasedonon-siteteachingandoutreachtraining.Itaimstoimprovethebasicknowledgeofnewemployeesinlaborcontract,productionsafety,technology,financeandotherprofessionalaspectsandquicklyintegrateintotheenterprise.Toenhancetheunityandcooperationabilityandphysicalfitnessofnewemployeesthroughoutreachtraining,tempertheirstrongwill,andcreateexcellent“successors”ofChangyu.
(4)Laboroutsourcing?Available?Notavailable
10.TheCompany’sprofitdistributionandincreasingequitywithcapitalreserveProfitdistributionpoliciesespeciallypromulgation,implementationoradjustmentofcashdividendspoliciesduringthereportperiod?Available□NotavailableDeliberatedandpassedbythe2022AnnualShareholders’MeetingconvenedonMay26,2023bytheCompany,theCompany’s2022annualprofitdistributionschemeisshownasfollows:basedontotal685,464,000shares(including453,460,800Asharesand232,003,200Bshares),theCompanywouldpaycashdividendtoallshareholdersregisteredontheshareregistrationday:CNY4.5（includingtax）incashpertenshares.ThistimetheCompanywouldneitherdispatchbonussharesnorincreaseequitywithcapitalreserve.
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Totalamountofshareshasnotchangedsincethedisclosureofthedistributionplantotheimplementationperiod.OnJune13,2023,theCompanypublishedtheImplementationAnnouncementof2022AnnualEquityDistributiononChinaSecuritiesJournal,SecuritiesTimesandwww.cninfo.com.cn,determiningthattheshareregistrationdayandtheex-dividenddayofASharewasrespectivelyonJune16,2023andonJune19,2023;thelasttradingday,theex-dividenddayandtheshareregistrationdayofBSharewasrespectivelyonJune16,2023,onJune19,2023andonJune21,2023.ThistimethedispatchingobjectscontainallAShareshareholdersregisteredatChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenCompany(hereinafterreferredtoasCSDCShenzhenCompany)afterclosingofShenzhenStockExchangeintheafternoonofJune16,2023andallBShareshareholdersregisteredatCSDCShenzhenCompanyafterclosingofShenzhenStockExchangeintheafternoonofJune21,2023(thelasttradingdayisJune16,2023).ThisdispatchinghasalreadybeencompletedinJune2023.Theprofitdistributionschemeimplementedthistimeisconsistentwiththeschemedeliberatedandpassedbytheshareholders’meeting.Theimplementationoftheprofitdistributionschemeforthistimeisnotmorethantwomonthsaftertheshareholders’meetingpassingit.
Specialexplanationforthecashdividendspolicy
| Specialexplanationforthecashdividendspolicy | |
| WhetheritisinaccordancewiththerequirementsoftheregulationintheArticlesofAssociationandtheresolutionofshareholders’meeting | Yes |
| Whetherthedistributionstandardandproportionisclearanddefinite | Yes |
| Whethertherelevantdecisionprocessandmechanismiscomplete | Yes |
| Whethertheindependentdirectorsperformtheirresponsibilitiesandplaytheroles | Yes |
| Ifthecompanydoesnotpaycashdividend,itshoulddisclosethespecificreasonsandthenextstepstoenhancethereturnlevelofinvestors: | Thecompanyhadpaidcashdividend |
| Whetherthesmallandmiddleshareholdershavethechancetoexpresstheiropinionsandappeals,aswellastheirlawfulrightandinterestisinanenoughprotection | Yes |
| Whetheritislegalandtransparentfortheconditionandprocesswhileadjustingandamendingthecashdividendspolicy | Yes |
Duringthereportperiod,theCompanyearnedprofit,theprofitoftheparentcompanythatcouldbedistributedtoshareholderswaspositivebutwithoutproposingcashdividenddistributionpreliminaryscheme.□Available?NotavailableTheCompany’spreliminaryschemeofprofitdistributionandpreliminaryschemeofincreasingequitywithcapitalreserveforthereportperiod?Available□Notavailable
| Numberofsendingbonussharespertenshares(share) | 0 |
| Numberofdividendpayoutpertenshares(CNY)(includingtax) | 5 |
| Thecardinalnumberofthecapitalstocksforthepreliminarydistributionscheme(share) | 692,249,559 |
| Cashdividenddistribution（CNY）(includingtax) | 346,124,780 |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Amountofcashdividends(eg.sharesbuy-back)（CNY）inotherways
| Amountofcashdividends(eg.sharesbuy-back)（CNY）inotherways | 0 | ||||
| Totalcashdividenddistribution（CNY）(includingotherways) | 346,124,780 | ||||
| Attributableprofit（CNY） | 532,438,907 | ||||
| Theproportionofcashdividenddistributioninthetotalprofitdistribution(includingotherways) | 100 | ||||
| Cashdividenddistributionthistime | |||||
| IftheCompany’sdevelopmentisingrowthstageandmajorcapitalexpenditureisarranged,whilemakingprofitdistribution,theproportionofcashdividendsshouldtakesupnolessthan20%inthisprofitdistribution. | |||||
| Detailedexplanationforthepreliminaryschemeofprofitdistributionorincreasingequitywithcapitalreserve | |||||
| Accordingtoregulationof157thitemintheArticlesofAssociation,whichisthat“theCompanycandistributedividendseitherincashorbystock,theprofittobedistributedeachyearisnotlessthan25%ofthedistributableprofitrealizedinthesameyearandtheaccumulatedsumofprofittobedistributedincashinthelastthreeyearsisnotlessthan30%oftheyearlyaveragedistributableprofittoberealizedinthelastthreeyears”.Meanwhile,consideringtheamountonthecapitalexpenditurein2024,undertheconditionofnotinfluencingthenormalproductionandoperation,theCompanyputforwardpreliminaryschemeonprofitdistributionin2023asfollowing:Becausetheleftamountoflegalearnedsurplusreservereaches50%ofregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewillnotbedrawn.BasedontheCompany’s692,249,559sharesattotaluptoDecember31,2023,theCompanyplanstopayCNY5incashasdividendsforeverytenshare(includingtax)totheCompany’sallshareholders,totalinguptoCNY346,124,780.Theretainedandundistributednetprofitwillbereservedfordistributioninthenextyear.Thecashdividenddistributedtoshareholdersofdomesticlistedforeignshares(Bshare)ispaidinHKDconvertedbasedonthemiddleratebetweenCNYandHKDissuedbythePeople’sBankofChinaonthefirstworkingdayaftertheresolutiondateof2023AnnualShareholders’Meeting. | |||||
11.ImplementationoftheCompany’sequityinventiveplan,employeestockownershipplanorotheremployeeincentivemeasures?Available?Notavailable
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
(1)EquityInventive
NO.
| NO. | Deliberativetime | Relevantmeetingsessions | Implementationoverview | Disclosureindex |
| 1 | 2023.04.26 | TheNinthSessionBoardofDirectors6thMeeting | ThemeetingdeliberatedandapprovedProposalontheCompany’s“RestrictedShareIncentivePlanin2023(Draft)”andAbstract,ProposalonFormulatingtheCompany’s“AssessmentManagementMethodofRestrictedShareIncentivePlanin2023”andProposalonAuthorizationofShareholders’MeetingtoBoardofDirectorstoPromoteIssuesRelevantwiththeCompany’sRestrictedShareIncentivePlanin2023. | Pleaserefertotheresolutionofboardofdirectors(announcementno.:2023-Interim9)disclosedonApril28,2023onCNINFO(http://www.cninfo.com.cn/) |
| 2 | 2023.04.26 | TheEighthSessionBoardofSupervisors5thMeeting | ThemeetingdeliberatedandapprovedProposalontheCompany’s“RestrictedShareIncentivePlanin2023(Draft)”andAbstract,ProposalonFormulatingtheCompany’s“AssessmentManagementMethodofRestrictedShareIncentivePlanin2023”andProposalonVerifying“ListofIncentiveObjectsInvolvedinRestrictedShareIncentivePlanin2023ofYantaiChangyuPioneerWineCo.,Ltd.”. | Pleaserefertotheresolutionofboardofsupervisors(announcementno.:2023-Interim10)disclosedonApril28,2023onCNINFO(http://www.cninfo.com.cn/) |
| 3 | 2023.05.04-2023.05.14 | ThenamesandpositionsofincentiveobjectsinvolvedinthisincentiveplanwerepublicizedwithintheCompany | ||
| 4 | 2023.05.18 | TheBoardofSupervisorsissuedtheExplanationandVerificationOpinionsontheDisclosureoftheListofincentiveObjectsoftheRestrictedShareIncentivePlanin2023onthereviewandpublicityofthelistofincentiveobjects. | Pleaserefertotheresolutionofboardofsupervisors(announcementno.:2023-Interim16)disclosedonMay19,2023onCNINFO(http://www.cninfo.com.cn/) | |
| 5 | 2023.05.26 | 2022AnnualShareholders’Meeting | ThemeetingdeliberatedandapprovedProposalontheCompany’s“RestrictedShareIncentivePlanin2023(Draft)”andAbstract,ProposalonFormulatingtheCompany’s“AssessmentManagementMethodofRestrictedShareIncentivePlanin2023”andProposalonAuthorizationofShareholders’MeetingtoBoardofDirectorstoPromoteIssuesRelevantwiththeCompany’sRestrictedShareIncentivePlanin2023. | Pleaserefertotheresolutionofshareholders’meeting(announcementno.:2023-Interim18)disclosedonMay27,2023onCNINFO(http://www.cninfo.com.cn/) |
| 6 | 2023.06.26 | TheFirstInterimBoardofDirectorsMeetingin2023 | ThemeetingdeliberatedandapprovedProposalonItemsofAdjustmentstoRestrictedShareIncentivePlanin2023andProposalonGranting | Pleaserefertotheresolutionofboardofdirectors(announcementno.:2023-Interim22)disclosedon |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
RestrictedSharestoIncentiveObjectsInvolvedinRestrictedShareIncentivePlanin2023
| RestrictedSharestoIncentiveObjectsInvolvedinRestrictedShareIncentivePlanin2023 | June27,2023onCNINFO(http://www.cninfo.com.cn/) | |||
| 7 | 2023.06.26 | TheFirstInterimBoardofSupervisorsMeetingin2023 | ThemeetingdeliberatedandapprovedProposalonItemsofAdjustmentstoRestrictedShareIncentivePlanin2023andProposalonGrantingRestrictedSharestoIncentiveObjectsInvolvedinRestrictedShareIncentivePlanin2023 | Pleaserefertotheresolutionofboardofsupervisors(announcementno.:2023-Interim23)disclosedonJune27,2023onCNINFO(http://www.cninfo.com.cn/) |
| 8 | 2023.07.10 | AnnouncedtheAnnouncementontheGrantingofRestrictedSharestoIncentiveObjects | Pleaserefertotheannouncement(announcementno.:2023-Interim25)disclosedonJuly10,2023onCNINFO(http://www.cninfo.com.cn/) | |
| 9 | 2023.07.19 | AfterreviewandconfirmationbyShenzhenStockExchangeandShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited,theregistrationofthefirstgrantofrestrictedshareswascompleted.TheAnnouncementontheGrantResultsofthe2023RestrictedShareIncentivePlanwaspublished. | Pleaserefertotheannouncement(announcementno.:2023-Interim26)disclosedonJuly19,2023onCNINFO(http://www.cninfo.com.cn/) |
EquityincentivesgrantedtodirectorsandseniorexecutivesoftheCompany?Available?Notavailable
| Name | Position | Numberofshareoptionsheldatthebeginningoftheyear | Numberofnewshareoptionsgrantedduringthereportingperiod | Numberoffeasiblesharesduringthereportingperiod | Numberofexercisedsharesduringthereportingperiod | Theexercisepriceofexercisedsharesduringthereportingperiod(CNY/share) | Numberofshareoptionsheldattheendoftheperiod | Themarketingpriceattheendofthereportingperiod(CNY/share) | Numberofrestrictedsharesheldatthebeginningoftheperiod | Numberofsharesunlockedduringtheperiod | Numberofnewrestrictedsharegrantedduringthereportingperiod | Grantpriceofrestrictedshare(CNY/share) | Numberofrestrictedshareheldattheendoftheperiod |
| ZHOUHongjiang | Chairman | 240,000 | 15.24 | 240,000 | |||||||||
| SUNJian | DirectorandGeneralManager | 210,000 | 15.24 | 210,000 | |||||||||
| LIJiming | DirectorandDeputyGeneralManager | 160,000 | 15.24 | 160,000 |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
JIANGJianxun
| JIANGJianxun | Director,DeputyGeneralManager,Boardsecretary | 160,000 | 15.24 | 160,000 | |||||||||
| JIANGHua | DeputyGeneralManager | 160,000 | 15.24 | 160,000 | |||||||||
| PENGBin | DeputyGeneralManager | 160,000 | 15.24 | 160,000 | |||||||||
| PANJianfu | GeneralManagerAssistant | 100,000 | 15.24 | 100,000 | |||||||||
| KONGQingkun | GeneralManagerAssistant | 100,000 | 15.24 | 100,000 | |||||||||
| LIUShilu | GeneralManagerAssistant | 100,000 | 15.24 | 100,000 | |||||||||
| XIAOZhenbo | GeneralManagerAssistant | 100,000 | 15.24 | 100,000 | |||||||||
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 0 | 0 | 1,490,000 | -- | 1,490,000 |
| Note（ifhave） | None | ||||||||||||
EvaluationmechanismsandincentivesforseniorexecutivesAccordingtotheCompensationandPerformanceAppraisalMeasuresoftheCompany’sSeniorExecutivesfortheperiodfrom2022to2024approvedbytheBoardofDirectors,thecompensationofseniorexecutiveincludesbasiccompensation(fixedcompensation+performancecompensation),excessprofitcommissionandlong-termincentive(deferredcash).TheCompanyhascontinuouslyimprovedtheperformanceappraisalmechanism,andtheevaluationandincentiveofseniorexecutivesarelinkedtotheCompany’sperformanceandpersonalworkresults.Atthebeginningoftheyear,accordingtotheoveralldevelopmentstrategyandannualbusinessobjectivesoftheCompany,theannualperformanceindicatorsandjobresponsibilitiesofseniorexecutivesaredeterminedaccordingtothedivisionofwork.TheannualperformanceandworkresultsarepresentedbytheEmolumentCommitteeoftheBoardofDirectors.Afterthe
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
deliberationandapprovaloftheassessmentresults,theperformanceassessmentofseniorexecutivesiscarriedout,andtherewardsandpunishmentsarehonored.
(2)Theimplementationofemployeeshareholdingplan?Available?Notavailable
(3)Otheremployeeincentives?Available?NotavailableOnJune26,2023,therestrictedshareincentiveplanwasfirstgrantedandregistered.Inadditiontotheabovedirectorsandseniorexecutives,thecompanyalsogranted5.2956millionrestrictedsharesto193middle-levelmanagersandcorepersonals.
12.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod
(1)ConstructionandimplementationofinternalcontrolFortheconstructionandimplementationofthecompany’sinternalcontrol,pleaserefertothe2023AnnualSelf-AssessmentReportonInternalControldisclosedinSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnonApril12,2024.
(2)Specificsituationsforsignificantdefectsoftheinternalcontrolfoundduringthereportperiod
□Yes?No
13.Thecompany’smanagementandcontroloversubsidiariesduringthereportingperiod
Companyname
| Companyname | Integrationplan | Integrationprogress | Problemsencounteredinintegration | Actionstaken | Resolveprogress | Follow-upresolutionplan |
| None | None | None | None | None | None | None |
14.Internalcontrolself-assessmentreportorinternalcontrolauditreport
（1）Internalcontrolself-assessmentreport
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Disclosuredateforfulltextoftheinternalcontrolself-assessmentreport
| Disclosuredateforfulltextoftheinternalcontrolself-assessmentreport | 2024.04.12 | ||
| Disclosureindexforfulltextoftheinternalcontrolself-assessmentreport | 2023AnnualSelf-AssessmentReportonInternalControlwasdisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril12,2024 | ||
| PercentageoftotalunitassetsincludedinscopeoftheassessmentaccountingfortheCompany’stotalassetsofconsolidatedfinancialstatements | 81.62% | ||
| PercentageofunitoperatingincomeincludedinscopeoftheassessmentaccountingfortheCompany’soperatingincomeofconsolidatedfinancialstatements | 85.68% | ||
| StandardsofDefectIdentification | |||
| Category | Financialreport | Non-financialreport | |
| Qualitativecriteria | Significantdefects:onedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport.Forexample:?Company’sDirectors,SupervisorsandSeniorManagementhavefraudulentpractices;?TheCompanymakescorrectionsforthepublishedfinancialreport;?Theauditofexternalintermediaryagentfindssignificantmisstatementexistinginthecurrentfinancialreport,buttheCompanydoesnotrealizeitduringtheoperationprocess;?Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescope;?TheCompany’sauditcommitteeandinternalauditdepartmentmakesaninefficientsupervisionforinternalcontrol;?Othersituationsmaybecausesignificantmisdirectionwhichguidesthereportuserstomaketherightjudgment.Majordefects：Thedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport,althoughthemisstatementsneitherachievesnorexceedstheimportancelevelbutstillarisingtheattentionofBoardofDirectorsandmanagementteam.?Failuretoselectandapplyaccountingregulationsinaccordancewithgenerallyacceptedaccountingprinciples;?Failuretoestablishtheanti-fraudproceduresandcontrolmeasures;?Failuretosetupcorrespondingcontrolmechanismortocarryoutand | Significantdefects:Anysituationslistedbelowappears,itcanberegardedassignificantdefects.?Operation:Unabletoachievealloperationtargetorkeybusinessindex,widelyoutofbudgetinvariousaspects.?Safetyaccidenteffects:Causeonepersonandabovedeath,ormorethan3personseriousinjuries.?Majornegativeeffects:Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescopeintheinternationalandnationalmainstreammedia.?Environmenteffects:Createirreparabledamagestoenvironment,andcausemassivepubliccomplains.Majordefects:Anysituationslistedbelowappears,itcanberegardedasmajordefects.?Operation:Unabletoachievepartlyoperationtarget,abigmarginoutofbudgetinvariousaspects.?Safetyaccidenteffects:Withoutreachingthenumberofpersonlossorseriousinjuryofsignificantdefects.?Majornegativeeffects:Negativenewsappearsinthemediawithinfluencingawidescopeintheprovincialmainstreammedia.?Environmenteffects:Causeheavyenvironmentdamagesandmassivepubliccomplains,oughttocarryoutthesignificantremedialmeasures.Generaldefects:Anysituationslistedbelowappears,itcanberegardedasgeneraldefects.?Operation:Othereffectsunableto | |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
takecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects.
| takecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects. | constitutethesignificantdefectsormajordefects.?Safetyaccidenteffects:Personalinjurylessthanthequantitativestandardsofmajordefects.?Majornegativeeffects:Otherdefectsunabletoconstitutethesignificantdefectsormajordefects.?Environmenteffects:Otherenvironmenteffectsunabletoconstitutethesignificantdefectsormajordefects. | |
| Quantitativecriterion | Fortotalassets/Owner’sequity:?Significantdefects:misstatements≧1%,or?Majordefects:0.5%≦misstatements<1%,or?Generaldefects:misstatements<0.5%Foroperationrevenue:?significantdefects:misstatements≧1%,or?Majordefects:0.5%≦misstatements<1%,or?Generaldefects:misstatements<0.5%Forpretaxprofit:?Significantdefects:misstatements≧5%,or?Majordefects:2%≦misstatements<5%,or?Generaldefects:misstatements<2% | Fordirectpropertyloss:?Significantdefects:MorethanCNY10million?Majordefects:CNY1million-CNY10million(includingCNY1million)?Generaldefects:LessthanCNY1million |
| Numberofsignificantdefectinfinancialreport | 0 | |
| Numberofsignificantdefectinnon-financialreport | 0 | |
| Numberofmajordefectinfinancialreport | 0 | |
| Numberofmajordefectinnon-financialreport | 0 | |
(2)Internalcontrolauditreport?Available□Notavailable
| Auditopinionsoftheinternalcontrolauditreport |
| Webelievethat,thecompanymaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialaspectsinaccordancewiththeBasicNormsforCorporateInternalControlandrelatedregulationsonDecember31,2023. |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
Disclosureoftheinternalcontrolauditreport
| Disclosureoftheinternalcontrolauditreport | Disclosure |
| Disclosuredateforthefulltextoftheinternalcontrolauditreport | 2024.04.12 |
| Disclosureindexforthefulltextoftheinternalcontrolauditreport | 2023AnnualSelf-AssessmentReportonInternalControlwasdisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril12,2024. |
| Opiniontypeoftheinternalcontrolauditreport | Standardwithoutreservedopinion |
| Whetherornotexistssignificantdefectsinnon-financialreports | No |
Whetherornottheaccountingfirmissuednon-standardopinionsfortheauditreportofinternalcontrol□Yes?NoWhethertheauditreportofinternalcontrolissuedbytheaccountingfirmisinconsistencywiththeself-assessmentreportoftheboardofdirectors?Yes?No
15.Self-inspectionandrectificationofproblemsinthespecialactionongovernanceoflistedcompanyNo.
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
V.EnvironmentalandSocialResponsibility
1.MajorEnvironmentalissuesWhetherthelistedcompanyanditssubsidiariesbelongtomajorpolluterspublishedbytheenvironmentalprotectiondepartment?Yes?NoPoliciesandindustrystandardsrelatedtoenvironmentalprotectionTheEnvironmentalProtectionLawofPeople’sRepublicofChina,TheWaterPollution’sPreventionandControlLawofPeople’sRepublicofChina,TheAirPollution’sPreventionandControlLawofPeople’sRepublicofChina,TheEnvironmentalNoisePollution’sPreventionandControlLawofPeople’sRepublicofChina,TheEnvironmentalSolidWastePollution’sPreventionandControlLawofPeople’sRepublicofChinaandTheEnvironmentalProtectionRegulationsofLiaoningProvince;thenational’sGeneralPrinciplesofHazardousWasteIdentificationStandards,SurfaceWaterEnvironmentalQualityStandards,GroundwaterEnvironmentalQualityStandards,EnvironmentalAirQualityStandards,AcousticEnvironmentalQualityStandards,EmissionStandardforEnvironmentalNoiseattheBoundaryofIndustrialEnterprises,ComprehensiveDischargeStandardforBoilerAirPollutants,TheLimitingValueofOccupationalExposuretoHazardousFactorsintheWorkplace(ChemicalHazardousFactors)andComprehensiveWastewaterDischargeStandardofLiaoningProvince.AdministrativepermitforenvironmentalprotectionIthasbeenapprovedintheHuanhuanjianzi(2016)No.24issuedbytheEnvironmentalProtectionBureauofHuanrenManchuAutonomousCounty.Industrialemissionstandardsandspecificinformationonthedischargeofpollutantsinvolvedinproductionandbusinessactivities
Nameofcompanyorsubsidiary
| Nameofcompanyorsubsidiary | Nameofmajorpollutantsandparticularpollutants | Nameofmajorpollutantsandcharacteristicpollutants | Modeofdischarge | Quantityofdischargeoutlet | Distributionsituationofdischargeoutlet | Dischargeconcentration | Implementedpollutiondischargestandard | Totalvolumeofdischarge | Totalapprovedvolumeofdischarge | Conditionofexcessivedischarge |
| LiaoningChangyuIcewineChateauCo.,Ltd. | Organizedexhaustgas,inorganizedexhaustgas,wasterwater, | exhaustgas,wasterwater,noise | Dischargeoutletofboilerchimneyanddischargeoutletoffactorywaste | 2 | ConfirmedinlinewithnationalstandardGraphicalSignsforEnvironmental | Meetingthenationalstandards | EmissionStandardforAirPollutantsofBoiler(GB13271-2014),EmissionStandardforOdorPollutants(GB14554-93),4ainClass2ofEmissionStandardforEnvironmentalNoiseattheBoundaryofIndustrialEnterprises | 35m3/d | 120m3/d | No |
YantaiChangyuPioneerWineCo.Ltd.2023AnnualReport
noise
| noise | water | Protection(GB15562.1-1995)(GB15562.2-1995) | (GB12348-2008),ComprehensiveWastewaterDischargeStandardofLiaoningProvince(DB21/1627-2008) |
TreatmentofpollutantsTheexhaustgas,SO
andNOXproducedbythiscompany'sboileraredischargedthroughceramictubedustremoversandbagdustremovers.Awastewatertreatmentstationhasbeenconstructed.Thewastewatertreatmentprocessadoptsthetreatmentprocessofhydrolysisaerobiont.Productionwastewateranddomesticsewagearetreatedbythein-plantwastewatertreatmentstationandthendischargedintothewastewatertreatmentplantinBeidianzixiangTown.EmergencyplanforemergentenvironmentalincidentTheCompanyhasformulatedacomprehensiveemergencyplanforemergentenvironmentalincident.Environmentalself-monitoringprogramTheCompanyhasformulatedacompleteenvironmentalself-monitoringprogram.InvestmentinenvironmentalgovernanceandprotectionandpaymentofenvironmentalprotectiontaxTheCompanyhasmadesufficientinvestmentinenvironmentalprotection,doneagoodjobinenvironmentalgovernanceandprotectionandpaidenvironmentalprotectiontaxinfullandtimelyaccordingtolaw.Measurestakentoreducecarbonemissionsandtheireffectsduringthereportingperiod?Available?NotavailableAdministrativepenaltiesforenvironmentalissuesduringthereportingperiod
| Companyorsubsidiaryname | Reasonforpenalty | Violation | Penaltyresult | Theimpactontheproductionandoperationoflistedcompanies | Thecompany’srectificationmeasures |
| None | None | None | None | None | None |
OtherenvironmentalinformationthatshouldbemadepublicNo
OtherrelatedenvironmentalinformationNo
2.SocialresponsibilityperformancePleaserefertothe2023Environmental,SocialandRegulatoryReport(ESG)disclosedonCNINFO(www.cninfo.com.cn)bytheCompanyonApril12,2024.
3.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationPleaserefertothe“CharityandCommunityInvolvement”sectionof2023Environmental,SocialandRegulatoryReport(ESG)disclosedonCNINFO(www.cninfo.com.cn)bytheCompanyonApril12,2024.
VI.Majorissues
1.Implementationofcommitments
(1)CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirersandtheCompanyandotherrelatedcommitmentpartieshaveimplementedduringthereportperiodandhavenotimplementeduptotheendofthereportperiod?Available□Notavailable
Commitments
| Commitments | Commitmentparty | Commitmenttype | Commitmentcontent | Commitmenttime | Commitmentperiod | Implementation |
| Commitmentsattheinitialpublicofferingorrefinancing | YantaiChangyuGroupCo.,Ltd. | Solvehorizontalcompetition | Non-horizontalcompetition | 1997.05.18 | Forever | Hasbeenperforming |
| YantaiChangyuGroupCo.,Ltd. | Cleartheuseoftrademarkroyalty | AccordingtoTrademarkLicenseContract,thetrademarkroyaltyofChangyuandothertrademarkspaidbytheCompanytoYantaiChangyuGroupCo.,Ltd.everyyearismainlyusedforadvertisingChangyuandothertrademarksandthiscontractproductsbyYantaiChangyuGroupCo.,Ltd. | 1997.05.18 | 1997.05.18-2019.04.04 | AccordingtoTrademarkLicenseContract,thetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksincludingChangyuandcontractproducts.Except2013to2017duringwhichthecommitmentwasnotstrictlyperformed,YantaiChangyuGroupCo.,Ltd.hasbeenperformingitscommitment. | |
| Othercommitments | YantaiChangyuGroupCo.,Ltd. | Compensatingunredeemedcommitment | TheCNY231,768,615thatwasnotusedforpublicityoftrademarksandcontractproductsaspromisedwouldbeoffsetbythefour-yeartrademarkusefeefrom2019to2022.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence. | 2019.04.04 | 2019.04.04-2023.12.31 | TheCNY231,768,615thatwasnotusedforpublicityoftrademarksandcontractproductsaspromisedhadoffsetbythefour-yeartrademarkusefeefrom2019to2022.Theshortfallwasfilledinonetimein2023. |
| Commitmentundertimelyimplementationornot | Yes | |||||
| Whetherornottohave | None | |||||
specificreasonsoftheunimplementedcommitmentandnextsteps
(2)TheCompanyshouldmakeastatementontheachievedoriginalprofitforecastofassetsorprojectsanditsreasonifthereisprofitforecastofCompany’sassetsorprojectsandthereportperiodisstillintheprofitforecastperiod□Available?Notavailable
2.Non-operatingcapitaloccupyingoflistedcompanybycontrollingshareholderanditsrelatedparties
□Available?NotavailableTherearenonon-operatingcapitalsoccupyingoflistedcompanybycontrollingshareholderanditsrelatedpartiesduringthereportperiod.
3.Illegalexternalguarantee□Available?NotavailableThereisnoillegalguaranteesituationduringthereportperiod.
4.ExplanationofboardofdirectorsonthelatestNon-standardAuditReport□Available?Notavailable
5.ExplanationofNon-standardAuditReportgivenbyaccountingfirminthereportperiodfromboardofdirectors,boardofsupervisorsandindependentdirectors(ifhave)
□Available?Notavailable
6.Comparedwiththelastyear’sfinancialreport,explanationofthechangesinaccountingpolicy,accountingestimationorcorrectionofsignificantaccountingerrors?Available?NotavailableThereisnochangesofaccountingpolicy,accountingestimationorcorrectionofsignificantaccountingerrorsduringthereportperiod.
7.Comparedwiththelastyear’sfinancialreport,explanationforthechangesoftheconsolidatedstatementsscope?Available?NotavailableForchangesinthescopeoftheconsolidatedstatementsduringthereportingperiodcomparedtothepreviousyear’sfinancialreport,pleaserefertoNote“VIIChangeofconsolidationscope”tothefinancialreportofthisreport.
8.TheappointmentanddismissalofcertifiedpublicaccountantsCurrentlyappointedaccountingfirm
Domesticaccountingfirmname
| Domesticaccountingfirmname | KPMGHuaZhenLLP |
| Remunerationfordomesticaccountingfirm(CNY‘0000) | 205 |
| Consecutiveperiodfortheauditserviceofdomesticaccountingfirm | 5 |
| Nameofcertifiedpublicaccountantfortheauditserviceofdomesticaccountingfirm | Ms.TingWang,Ms.HuiJiang |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofdomesticaccountingfirm | 5 |
| Overseasaccountingfirmname(ifhave) | — |
| Remunerationforoverseasaccountingfirm(CNY‘0000)(ifhave) | 0 |
| Consecutiveperiodfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Nameofcertifiedpublicaccountantfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofoverseasaccountingfirm(ifhave) | — |
Whetherornottoemployanewaccountingfirmduringthereportperiod?Yes?NoToemployinternalcontrolauditaccountingfirms,financialadviserorsponsor.?Available?NotavailableThisyear,KPMGHuazhenLLPwashiredastheinternalcontrolauditinstitution.Theauditfeewasnotdeterminedseparately,butwasCNY2.05milliontogetherwiththefinancialreportauditfee.
9.Faceofsuspensionandterminationoflistingafterthedisclosureofannualreport?Available?Notavailable
10.Bankruptcyreorganization
□Available?NotavailableThereisnobankruptcyreorganizationduringthereportperiod.
11.Materiallitigationandarbitration
□Available?NotavailableTherearenomateriallitigationandarbitrationduringthereportperiod.
12.Penaltyandrectification?Available?NotavailableTherearenopenaltyandrectificationduringthereportperiod
13.CreditoftheCompany,holdingshareholdersandactualcontrollers
□Available?Notavailable
14.Significantrelatedtransactions
(1)Relatedtransactionsinrelationtodailyoperations?Available□Notavailable
Related
party
| Relatedparty | Relationship | Type | Content | Pricingprinciple | Price | Amount(CNY‘0000) | Proportionaccountingforamountofsimilartransactions | Approvedtransactionquota(CNY‘0000) | Whetherexceedapprovedtransactionquota | Clearingform | Availablemarketpriceofsimilartransactions | Disclosuredate | Disclosureindex |
| YantaiShenmaPackagingCo.,Ltd. | Controlledbythesameparentcompany | Purchaseandcommissionprocessing | Purchaseandcommissionprocessingpackagingmaterials | Agreementpricing | Determinedbyagreement | 8,399 | 15.71% | 9,000 | No | Cash | No | 2023.04.13 | AnticipatedAnnouncementon2023AnnualRoutineRelatedTransactiondisclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFOin2023 |
| Total | -- | -- | 8,399 | -- | 9,000 | -- | -- | -- | -- | -- | |||
| Detailsofthereturnoflargesales | No | ||||||||||||
| Actualperformanceoftheestimatedtotalamountfordailyoperationsrelatedtransactionsbycategorythatwilloccurduringthisperiod. | No | ||||||||||||
| Reasonforthedeferencebetweentransactionpriceandmarketreferenceprice(ifavailable) | No | ||||||||||||
(2)Relatedtransactionsinrelationtoacquisitionandsalesofassetsorequity?Available?NotavailableThereisnorelatedtransactionsinrelationtoacquisitionorsalesofassetsorequityduringthereportperiod.
(3)Relatedtransactionsinrelationtocommonforeigninvestment?Available?NotavailableThereisnorelatedtransactionsinrelationtocommonforeigninvestmentduringthereportperiod.
(4)Relatedcurrentcreditanddebttransactions?Available□NotavailableWhetherornotexistingnon-operatingrelatedcreditanddebttransactions□Yes?NoThereisnonon-operatingrelatedcreditanddebttransactionsduringthereportperiod.
(5)Transactionswithrelatedfinancialcompanies?Available?NotavailableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentheCompanyandrelatedfinancialcompaniesandrelatedparties.
(6)TransactionsbetweentherelatedpartiesandfinancialcompaniescontrolledbytheCompany?Available?NotavailableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentherelatedpartiesandthefinancialcompaniescontrolledbytheCompany.
(7)Othermajorrelatedtransactions?Available?NotavailableThecompanyhasnoothersignificantrelatedpartytransactionsduringthereportingperiod.
15.Majorandimportantcontractsandexecutionresults
(1)Trusteeship,contractandleaseholdissues?Trusteeshipsituation?Available?NotavailableThereisnotrusteeshipsituationduringthereportperiod?Contractsituation?Available?NotavailableThereisnocontractsituationduringthereportperiod.?Leaseholdsituation
?Available?NotavailableExplanationforleasesituationOnJanuary1,2022,theCompanyrenewedtheSpaceLeaseAgreementwiththecontrollingshareholderYantaiChangyuGroupCompanyLimited.TheCompanyleasedthespacewith15,196.94squaremeterslocatingatNo.174ShihuiyaoRoad,ZhifuDistrict,YantaiCity.TherentperyearisCNY1.4645millionwitharentalperiodof5yearsfromJanuary1,2022toDecember31,2026.OnJanuary1,2022,theCompany’ssubordinateSales&MarketingCo.ofYantaiChangyuPioneerWineCompanyLimitedBrandySalesDivisionrenewedtheSpaceLeaseAgreementwiththecontrollingshareholderYantaiChangyuGroupCompanyLimited,leasingthespacewith42,552.83squaremeterslocatingatNo.1JichangRoad,ZhifuDistrict,YantaiCityandthespacewith3,038squaremeterslocatingat56DamaRoad,ZhifuDistrict,YantaiCity,whichareallunderthenameofcontrollingshareholder.TherentofabovespacesperyearisCNY4.3935millionwitharentalperiodof5yearsfromJanuary1,2022toDecember31,2026.In2022,thisCompanysignedahouse-leasingcontractwithYantaiShenmaPackagingCompanyLimited.Accordingtothiscontract,sinceJuly1,2022,thisCompanyleasedpropertytoYantaiShenmaPackagingCompanyLimitedforabusinesspurposewiththeannualrentofCNY1,626,880.ThiscontractexpiresonJune30,2023.ProjectwhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod?Available?NotavailableTherearenoleaseprojectswhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod.
(2)Majorguarantee?Available□Notavailable
Unit:CNY’0000
ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries）
| ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries） | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | Collateral(ifhave) | Counterguaranteesituation(ifhave) | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiEconomicandTechnologicalDevelopmentZoneManagementCouncil. | 2016.12.22 | 34,160 | 2016.12.21 | 34,160 | Jointliabilityassurance;Mortgage | - | - | 10years | No | No |
| Totaloftheexternalguaranteequotaapprovedduringthereportperiod(A1) | 0 | Totaloftheactualexternalguaranteeamountduringthereportperiod(A2) | 0 | |||||||
| Totaloftheexternalguaranteequotaapprovedbytheendofthereportperiod(A3) | 34,160 | Balanceoftheactualexternalguaranteebytheendofthereportperiod(A4) | 34,160 | |||||||
| GuaranteesituationsbetweentheCompanyandsubsidiaries | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence | Actualguaranteeamount | Guaranteetype | Collateral | Counterguaranteesituation | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiChangyuWineResearchandDevelopmentCompanyLimited | 2016.12.22 | 72,176 | 2016.12.21 | 72,176 | Jointliabilityassurance;Mortgage | - | - | 10years | No | Yes |
| KilikanoonEstatePtyLtd | 2023.08.31 | 7,530 | 2023.09.01 | 7,530 | Jointliabilityassurance | - | - | Effectiveasofthedate | No | Yes |
thisAgreementissignedandwillremainineffectaslongastheguarantorremainsin
businesswithEastWestBank
| thisAgreementissignedandwillremainineffectaslongastheguarantorremainsinbusinesswithEastWestBank | ||||||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(B1) | 7,530 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(B2) | 7,530 | |||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesbytheendofthereportperiod(B3) | 80,376 | Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(B4) | 80,376 | |||||||
| Guaranteesituationsbetweensubsidiaries | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence | Actualguaranteeamount | Guaranteetype | Collateral | Counterguaranteesituation | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| TotalguaranteeamountoftheCompany（Totalofabovethreemajoritems） | ||||||||||
| Totaloftheapprovedguaranteequotaduringthereportperiod（A1+B1+C1） | 7,530 | Totaloftheactualguaranteeamountduringthereportperiod（A2+B2+C2） | 7,530 | |||||||
| Totaloftheapprovedguaranteequotabytheendofthereportperiod（A3+B3+C3） | 114,536 | Balanceoftheactualguaranteebytheendofthereportperiod（A4+B4+C4） | 114,536 | |||||||
| Theproportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’snetasset | 10.56% | |||||||||
Among:
| Among: | |
| Theamountofguaranteeforshareholders,actualcontrollersandtheirrelatedparties（D） | 0 |
| Theamountofdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratioismorethan70%directlyorindirectly（E） | 0 |
| Totalamountofguaranteeofthepartthatexceeds50%ofnetassets（F） | 0 |
| Totalamountoftheabove-mentionedthreeitems（D+E+F） | 0 |
| Explanationforundueguaranteesthathavehappenedwarrantyliabilityormaytakejointpaybackliabilitiesduringthereportperiod(ifhave) | No |
| Explanationforviolatingdueprocesstoprovideexternalguarantee(ifhave) | No |
DescriptionofthespecificsituationofusingcompoundguaranteeNo.
(3)Entrustingotherstomanagecashassets?Financialmanagemententrustment
□Available?NotavailableThereisnofinancialmanagemententrustmentduringthereportperiod.?Loanentrustment
□Available?NotavailableThereisnoloanentrustmentduringthereportperiod.
(4)Otherimportantcontracts
□Available?NotavailableTherearenootherimportantcontractsduringthereportperiod.
16.OtherMajorissues
□Available?NotavailableTherearenoothermajorissuesneedtobeexplainedduringthereportperiod.
17.MajorissuesofCompany’ssubsidiaries
□Available?Notavailable
VII.ChangesinSharesandtheShareholders’Situation
1.Changesinshares
(1)Changesinshares
Unit:share
Amountbeforethischange
| Amountbeforethischange | Change(+,-) | Amountafterthischange | |||||||
| Amount | Percentage% | Allotnewshare | Distributebonusshare | Transferothercapitaltosharecapital | Others | Subtotal | Amount | Percentage% | |
| I.Shareswithtradinglimitedcondition | 6,785,559 | 6,785,559 | 6,785,559 | 0.98% | |||||
| 1.State-ownedholdings | |||||||||
| 2.State-ownedlegalpersonholdings | |||||||||
| 3.Otherdomesticholdings | 6,785,559 | 6,785,559 | 6,785,559 | 0.98% | |||||
| Amongwhich:domesticlegalperson | |||||||||
| domesticnaturalperson | 6,785,559 | 6,785,559 | 6,785,559 | 0.98% | |||||
| 4.Foreign-ownedholdings | |||||||||
| Amongwhich:foreignlegalperson | |||||||||
| foreignnaturalperson | |||||||||
| II.Shareswithouttradinglimitedcondition | 685,464,000 | 100% | 685,464,000 | 99.02% | |||||
| 1.Ashares | 453,460,800 | 66.15% | 453,460,800 | 65.51% | |||||
2.Bshares
| 2.Bshares | 232,003,200 | 33.85% | 232,003,200 | 33.51% | |||
| 3.Oversealistedforeignshares | |||||||
| 4.Others | |||||||
| III.Totalshares | 685,464,000 | 100% | 6,785,559 | 6,785,559 | 692,249,559 | 100% |
Causeofsharechange?Available?NotavailableDuringthereportingperiod,theCompanyimplementedarestrictedshareincentiveplanandgranted6.7856millionsharesto203incentivesubjects.Approvalofsharechange?Available?NotavailableIthasbeendeliberatedandapprovedbytheBoardofDirectorsandShareholders’Meeting.Transferownershipofchangedshares?Available?NotavailableShareshavebeengrantedto203incentiverecipientsandtransfershavebeencompleted.Theinfluenceofsharechangeonthefinancialindicatorssuchasbasicearningspershare,dilutedearningspershareofthelatestyearandthelatestperiod,netassetpersharebelongingtotheCompany’scommonshareholders,etc..?Available?NotavailableAsaresultoftheincreaseintotalsharecapital,financialindicatorssuchasbasicanddilutedearningspershareforthemostrecentyearandthemostrecentperiodandassetspershareattributabletotheCompany’scommonshareholderswilldecreaseaccordingly.
OthercontentstheCompanythinksnecessaryorsecuritiesregulatorydepartmentsasktomakepublic.
□Available?Notavailable
(2)Changesinrestrictedshares?Available?Notavailable
Unit:share
Shareholdername
| Shareholdername | Numberofrestrictedsharesatthebeginningperiod | Increasednumberofrestrictedsharesinthisperiod | Numberofrestrictedsharesliftedduringthisperiod | Numberofrestrictedsharesattheendoftheperiod | Reasonforrestrictedsale | Dateofliftingrestrictions |
| 203incentiveobjects | 6,785,559 | 6,785,559 | Implementequityincentive | Determinedbyequityincentive | ||
| Total | 0 | 6,785,559 | 0 | 6,785,559 | -- | -- |
2.Securitiesissuanceandlistingsituation
(1)Securitiesissuance(excludepreferredshare)duringreportperiod?Available?Notavailable
| Namesofsharesandtheirderivativesecurities | Issueddate | Issuedprice(orinterestrate) | Issuednumber | Listingdate | Numberofapprovedlistings | Transactionterminationdate | Disclosureindex | Disclosuredate |
| Shareclass | ||||||||
| Ashare | 2023.06.26 | 15.24 | 6,785,559 | 2023.07.20 | 6,785,559 | TheAnnouncementontheGrantResultsofthe2023RestrictedShareIncentivePlan(announcementno.:2023-Interim26) | 2023.07.19 | |
| Convertiblecorporatebonds,convertiblecorporatebondsthattradedseparatelyandcorporatebonds | ||||||||
| Otherderivativesecurities | ||||||||
Descriptionoftheissuanceofsecurities(excludingpreferredshares)duringthereportingperiodDuringthereportingperiod,theCompanyissued6,785,559AsharesatapriceofCNY15.24pershareto203incentiveobjects.
(2)ExplanationofchangeinCompany’stotalsharesandshareholdingstructureandchangeinCompany’sassetsandliabilitystructure?Available?NotavailableDuringthereportingperiod,theCompanyimplementedtherestrictedshareincentiveplanandgranted6.7856millionsharesto203incentivesubjects.ThechangesintheCompany’ssharecapitalstructureafterthegrantregistrationwereasfollows:
Natureofshareholder
| Natureofshareholder | Beforethischange | Thischange | Afterthischange | ||
| Numberofshares(share) | Percentage | Numberofshares(share) | Numberofshares(share) | Percentage | |
| Tradablerestrictedshares | 0 | 0% | 6,785,559 | 6,785,559 | 0.98% |
| Tradableunrestrictedshares | 685,464,000 | 100% | —— | 685,464,000 | 99.02% |
| Total | 685,464,000 | 100% | 6,785,559 | 692,249,559 | 100% |
Afterthecompletionoftherestrictedsharegranted,thecompany’sequitydistributionstillmeetsthelistingconditions.
(3)Currentinternalemployeeshares
□Available?Notavailable
3.Situationforshareholdersandtheactualcontrollers
(1)ThenumberofshareholdersoftheCompanyandtheshareholdings
Unit：share
| Totalshareholdersinthereportperiod | 46,713 | Totalnumberofshareholdersbytheendoflastmonthbeforethedisclosuredayoftheannualreport | 47,362 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendofreportperiod | 0 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendoflastmonth | 0 |
beforethedisclosuredayoftheannualreport
| beforethedisclosuredayoftheannualreport | |||||||||||
| Shareholdersholdingmorethan5%orthetop10shareholdersholdingsituation | |||||||||||
| NameofShareholders | Characterofshareholders | Percentage(%) | Shareshelduntiltheendofthereportperiod | Changesduringthereportperiod | Numberofrestrictedshares | Numberofunrestrictedshares | Pledged/markedorfrozen | ||||
| Sharestatus | Amount | ||||||||||
| YANTAICHANGYUGROUPCO.,LTD. | Domesticnon-statelegalperson | 49.91% | 345,473,856 | 2,300 | 0 | 345,473,856 | — | 0 | |||
| GAOLINGFUND,L.P. | Foreignlegalperson | 1.77% | 12,238,951 | -8,851,268 | 0 | 12,238,951 | — | 0 | |||
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 1.31% | 9,061,352 | 1,767,400 | 0 | 9,061,352 | — | 0 | |||
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 1% | 6,918,838 | 1,920,007 | 0 | 6,918,838 | — | 0 | |||
| HONGKONGSECURITIESCLEARINGCOMPANYLIMITED | Foreignlegalperson | 0.77% | 5,323,034 | 902,948 | 0 | 5,323,034 | — | 0 | |||
| JIANGFengdi | Domesticnaturalperson | 0.77% | 5,307,000 | 12,000 | 0 | 5,307,000 | — | 0 | |||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | Foreignlegalperson | 0.69% | 4,792,989 | -2,890,027 | 0 | 4,792,989 | — | 0 | |||
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | Foreignlegalperson | 0.59% | 4,094,263 | 67,400 | 0 | 4,094,263 | — | 0 | |||
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | Foreignlegalperson | 0.57% | 3,921,904 | -1,064,598 | 0 | 3,921,904 | — | 0 | |||
| VANGUARDTOTALINTERNATIONALSTOCKINDEXFUND | Foreignlegalperson | 0.50% | 3,483,537 | 0 | 0 | 3,483,537 | — | 0 | |||
| Strategicinvestorsorlegalresultoftheplacementofnewsharestobecomeatop10shareholders(Ifhave)(PleaserefertoNote3) | No | ||||||||||
| Theexplanationfortheassociatedrelationshipandaccordantaction | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,whiletherelationshipamongtheothershareholdersisunknown. | ||||||||||
| Explanationoftheabove-mentionedshareholders’entrustment/fiduciaryvoting | No | ||||||||||
Thelendingofsharesbythetoptenshareholdersinthesecuritiesfinancingbusiness?Yes?No
rightsandwaiverofthevotingrights
| rightsandwaiverofthevotingrights | |||
| Specialexplanationfortheexistenceofaspecialrepurchaseaccountamongthetop10shareholders | No | ||
| Thetop10shareholderswithshareswithouttradinglimitedcondition | |||
| NameofShareholders | Numberofshareswithouttradinglimitedconditionhelduntiltheendoftheyear | Typeofshare | |
| Typeofshare | Amount | ||
| YANTAICHANGYUGROUPCO.,LTD. | 345,473,856 | A | 345,473,856 |
| GAOLINGFUND,L.P. | 12,238,951 | B | 12,238,951 |
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | 9,061,352 | B | 9,061,352 |
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | 6,918,838 | B | 6,918,838 |
| HONGKONGSECURITIESCLEARINGCOMPANYLIMITED | 5,323,034 | A | 5,323,034 |
| JIANGFengdi | 5,307,000 | A | 5,307,000 |
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | 4,792,989 | B | 4,792,989 |
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | 4,094,263 | B | 4,094,263 |
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | 3,921,904 | B | 3,921,904 |
| VANGUARDTOTALINTERNATIONALSTOCKINDEXFUND | 3,483,537 | B | 3,483,537 |
| Theexplanationfortheassociatedrelationshipandaccordantactionofthetop10shareholderswithunrestrictedshares,thetheassociatedrelationshipandaccordantactionbetweenthetop10shareholderswithunrestrictedsharesandthetop10shareholders | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,andtherelationshipamongtheothershareholdersisunknown. | ||
| Explanationforthetop10shareholderswhoinvolvedinfinancingactivitiesandstocktradingbusiness | Thetop10shareholdersdonotinvolveinfinancingactivitiesandstocktradebusiness. | ||
Unit：share
Thelendingofsharesbythetoptenshareholdersinthesecuritiesfinancingbusiness
| Thelendingofsharesbythetoptenshareholdersinthesecuritiesfinancingbusiness | ||||||||
| NameofShareholders(fullname) | Numberofsharesheldinordinaryaccountsandcreditaccountsatthebeginningoftheperiod | Numberoflendingsharesofthesecuritiesfinancingandnotbereturnedyetatthebeginningperiod | Numberofsharesheldinordinaryaccountsandcreditaccountsattheendoftheperiod | Numberoflendingsharesofthesecuritiesfinancingandnotbereturnedyetattheendperiod | ||||
| Totalquantity | Theproportionofthetotalsharecapital | Totalquantity | Theproportionofthetotalsharecapital | Totalquantity | Theproportionofthetotalsharecapital | Totalquantity | Theproportionofthetotalsharecapital | |
| YANTAICHANGYUGROUPCO.,LTD. | 345,471,556 | 50.40% | 2,300 | 0% | 345,473,856 | 49.91% | 0 | 0% |
Thetoptenshareholderschangedfromthepreviousperiod?Available?NotavailableWhetherornottheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditiontakeagreedrepurchasetradingduringthereportperiod
□Yes?NoThereisnoagreedrepurchasetradingtakenbytheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditionduringthereportperiod.
(2)SituationforthecontrollingshareholdersoftheCompanyPropertyofholdingshareholders:PropertyofholdingmainbodyundefinedTypeofholdingshareholders:Legalrepresentative
| Nameofcontrollingshareholder | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiChangyuGroupCo.,Ltd. | ZHOUHongjiang | 1997.04.27 | 913706002656458244 | Productionofwine,healthyliquor,distilledliquorandbeverages(onlyproducedbysubsidiaries,shareholdingcompaniesandbranches),salesoftheabove-mentionedproducts,cultivationofagriculturalproducts |
andexportbusinessunderthescopeofpermission.
| andexportbusinessunderthescopeofpermission. | |
| Equitysituationfortheotherdomesticlistedcompaniescontrolledorsharedbythecontrollingshareholdersduringthereportperiod | No. |
Changesinthecontrollingshareholderduringthereportperiod?Available?NotavailableTherearenochangesinthecontrollingshareholderduringthereportperiod.
(3)SituationfortheactualcontrollersoftheCompanyanitspersonsactinginconcertPropertyofactualcontrollers:domesticotherinstitutions;foreignotherinstitutionsTypeofactualcontrollers:Legalrepresentative
| Nameofactualcontrollers | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiYuhuaInvestment&DevelopmentCo.,Ltd. | JIANGHua | 2004.10.28 | 767792947 | Understatepermission,propertyinvestment,tenancyofmachineandfacility,wholesaleandretailofconstructionmaterial,chemicalproducts(chemicalhazardproductsexcluded),hardwareandelectronicalproducts,grapeplantation. |
| ILLVASaronnoHoldingS.p.a. | AldinoMarzorati | 1984.07.25 | － | Directlyorindirectlyconducttheproductionanddistributionoffoodproducts(alcoholicproductsincluded)aswellasindustrial,commercial,financialandserviceactivitiesofanyotherkindsthroughjoint-stockcompaniesandorganizations. |
| InternationalFinanceCorporation | MakhtarDiop | 1956.07.25 | － | InternationalFinanceCorporationisoneofthemembersofWorldBank,mainlydedicatedtoinvestmentinprivatesectorsofdevelopingcountrieswhileprovidingtechnicalsupportandconsultationservice.Thecorporationisamultilateralfinancialinstitutionthatranksfirstintheworldintermsofprovidingcapitalstockandloanstodevelopingcountries.Itspurposeistopromotesustainableinvestmentsofprivatesectorsofdevelopingcountriesinordertoalleviatepovertyandimprovepeople’slife. |
| YantaiGuofengInvestmentHoldingsGroupCo.,Ltd. | RONGFeng | 2009.02.12 | 684822338 | Operatingmanagementofstate-ownedpropertyright(stockright)authorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;Financing,investmentandoperatingmanagementofgovernmentprojects,suchasstrategicinvestmentandindustrialinvestmentandsoon;Capitaloperation(includingacquisition,reintegrationandtransfer,etc)ofstate-ownedpropertyrightand |
state-ownedstockrightwithinthescopeofauthorization;Venturecapitalinvestmentbusiness;Agencyofventurecapitalinvestmentbusinessofotherventureinvestmententerprisesorindividuals;Participationintheestablishmentofventurecapitalinvestmententerprisesandventurecapitalinvestmentmanagementconsultantinstitutions;Investmentandfinancingserviceandconsultingbusiness;Investmentandfinancingconsultantbusiness;OtherbusinessauthorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;wholesaleandretailofnon-ferrousmetalmineralproducts,gold(spotgood),silver(spotgood),chemicalproducts(excludingdangerousgoods),batterymaterials(excludingdangerouschemicals);importandexportofgoodsandtechnologies.(Thebusinessscopedoesnotincludenationalpre-approvalprojectsandprojectsrestrictedbynationalindustrialpolicies;projectsthataresubjecttoapprovalaccordingtolawcanonlycarryoutbusinessactivitiesafterapprovalbyrelevantdepartments).
| state-ownedstockrightwithinthescopeofauthorization;Venturecapitalinvestmentbusiness;Agencyofventurecapitalinvestmentbusinessofotherventureinvestmententerprisesorindividuals;Participationintheestablishmentofventurecapitalinvestmententerprisesandventurecapitalinvestmentmanagementconsultantinstitutions;Investmentandfinancingserviceandconsultingbusiness;Investmentandfinancingconsultantbusiness;OtherbusinessauthorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;wholesaleandretailofnon-ferrousmetalmineralproducts,gold(spotgood),silver(spotgood),chemicalproducts(excludingdangerousgoods),batterymaterials(excludingdangerouschemicals);importandexportofgoodsandtechnologies.(Thebusinessscopedoesnotincludenationalpre-approvalprojectsandprojectsrestrictedbynationalindustrialpolicies;projectsthataresubjecttoapprovalaccordingtolawcanonlycarryoutbusinessactivitiesafterapprovalbyrelevantdepartments). | ||
| Equitysituationfortheotherdomesticlistedcompaniescontrolledbytheactualcontrollerduringthereportperiod | YantaiYuhuaInvestment&DevelopmentCo.,Ltd.didnotcontroltheequityofotherdomesticandforeignlistedcompaniesexcepttheCompanyduringthereportingperiod;ItisnotclearthatotheractualcontrollerscontroltheequityofotherdomesticandforeignlistedcompaniesotherthantheCompanyduringthereportingperiod. | |
Changesoftheactualcontrollersduringthereportperiod?Available?NotavailableTherearenochangesinactualcontrollersduringthereportperiod.
IntroductionforpropertyrightandcontrolrelationsbetweentheCompanyanditsactualcontrollers
ActualcontrollercontrolstheCompanythroughatrustorotherassetmanagementways
□Available?Notavailable
(4)Thecompany’scontrollingshareholderorthelargestshareholderanditsconcertedactionperson’scumulativepledgedsharesaccountfor80%ofthecompany’ssharesheldbythem
□Available?Notavailable
(5)Otherinstitutionalshareholdersholdingmorethan10%shares□Available?Notavailable
(6)Sharesreductionsituationsofholdingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects
□Available?Notavailable
4.ThespecificimplementationofsharerepurchaseduringthereportingperiodImplementationprogressofsharerepurchase
□Available?NotavailableImplementationprogressofreducingsharerepurchasedbycentralizedbidding
□Available?Notavailable
VIII.RelatedSituationofPreferredShares
□Available?NotavailableTherearenopreferredsharesduringthereportperiod.
IX.RelatedSituationofBonds
□Available?Notavailable
X.FinancialReport
1.AuditReport
Typeofauditopinion
| Typeofauditopinion | Standardunqualifiedauditopinion |
| Datesignedonauditreport | April10,2024 |
| Auditagencyname | KPMGHuazhenCertifiedPublicAccountantsCo.,Ltd.(specialgeneralpartnership) |
| AuditreportNo. | KPMGHuazhenShenZiNo.2405429 |
| Certifiedpublicaccountant’sname | Ms.TingWang,Ms.HuiJiang |
YANTAICHANGYUPIONEERWINECOMPANYLIMITED
ENGLISHTRANSLATIONOFFINANCIALSTATEMENTSFORTHEYEAR1JANUARY2023TO31DECEMBER2023IFTHEREISANYCONFLICTBETWEENTHECHINESEVERSIONANDITSENGLISH
TRANSLATION,THECHINESEVERSIONWILLPREVAIL
AUDITOR’SREPORT
KPMGHuazhenShenZiNo.2405429AllShareholdersofYantaiChangyuPioneerWineCompanyLimited:
OpinionWehaveauditedtheaccompanyingfinancialstatementsofYantaiChangyuPioneerWineCompanyLimited(“YantaiChangyu”),whichcomprisetheconsolidatedbalancesheetandcompanybalancesheetasat31December2023,theconsolidatedincomestatementandcompanyincomestatement,theconsolidatedcashflowstatementandcompanycashflowstatement,theconsolidatedstatementofchangesinshareholders’equityandcompanystatementofchangesinshareholders’equityfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedfinancialpositionandcompanyfinancialpositionofYantaiChangyuasat31December2023,andofitsconsolidatedfinancialperformanceandcompanyfinancialperformanceanditsconsolidatedcashflowsandcompanycashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceofthePeople’sRepublicofChina.BasisforOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditingforCertifiedPublicAccountants(“CSAs”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentofYantaiChangyuinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants(“theCode”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2405429
KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsfortheyear.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
RecognitionofSalesRevenuefromDistributors
| RecognitionofSalesRevenuefromDistributors | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”25and“V.Notestotheconsolidatedfinancialstatements”38. | |
| TheKeyAuditMatters | HowtheMatterwasAddressedinOurAudit |
| TheprincipalactivitiesofYantaiChangyuanditssubsidiaries(hereinafterreferredtoas“YantaiChangyuGroup”)includemanufactureandsalesofwine,brandyandsparklingwine.TherevenueofYantaiChangyuGroupismainlyderivedfromsalesofdistributors.AlldistributortransactiontermsadopttheunifiedtransactiontermsformulatedbyYantaiChangyuGroup.Basedonthecontractualagreementandthebusinessarrangement,YantaiChangyusellsproductstodistributorsandthetransferofproductownershipiscompletedandtherevenueisrecognisedwhenthegoodsaredeliveredtodistributorsandsignedforacceptance.AsrevenueisoneofthekeyperformanceindicatorsofYantaiChangyuGroup,thereisariskthatmanagementmayrecogniserevenueearlierorlaterinordertomeetspecificperformancetargetsorexpectations,therefore,theriskofcut-offmisstatementarisingfromdistributors’salesrevenueisidentifiedasakeyauditmatter. | Ourauditprocedurestoevaluaterevenuerecognitionofsalesrevenuefromdistributorsincludedthefollowing:?UnderstandandevaluatetheManagement’sdesignandoperationeffectivenessofkeyinternalcontrolsrelatedtodistributorsalesrevenuerecognition;?SelectingthesalescontractsYantaiChangyusignedwithdistributorsinordertoexaminewhetherYantaiChangyuhasadoptedtheunifiedtransactionterms,andevaluatewhethertheaccountingpolicyofrevenuerecognitionmeetstherequirementsoftheAccountingStandardsforBusinessEnterprises;?Onasamplingbasis,reconciletherevenuerecordedfortheyeartorelevantsupportingfilessuchasrelevantordersandsigneddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinaccordancewiththeaccountingpolicyofYantaiChangyu; |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2405429
KeyAuditMatters(continued)
RecognitionofSalesRevenuefromDistributors(continued)
| RecognitionofSalesRevenuefromDistributors(continued) | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”25and“V.Notestotheconsolidatedfinancialstatements”38. | |
| TheKeyAuditMatters | HowtheMatterwasAddressedinOurAudit |
| ?Onasamplingbasis,reconcilethesalestransactionbeforeandafterbalancesheetdatetorelevantsupportingfilessuchasrelevantorders,signeddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinappropriateaccountingperiod;?Checkthesalesrecordafterthebalancesheetdatetoidentifysignificantsalesreturnsandcheckrelevantsupportingfiles(Ifapplicable)inordertoevaluatewhetherrelevantrevenueisrecordedintheappropriateaccountingperiod;?Selectrevenueaccountingentriesthatmeetspecificriskcriteriaandcheckrelatedsupportingdocuments. | |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2405429
OtherInformationManagementofYantaiChangyuisresponsiblefortheotherinformation.Theotherinformationcomprisesalltheinformationincludedinthe2023annualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsManagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises,andforthedesign,implementationandmaintenanceofsuchinternalcontrolnecessarytoenablethatthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingYantaiChangyu’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidateYantaiChangyuortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingYantaiChangyu’sfinancialreportingprocess.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2405429
Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements(continued)AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,
whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignaudit
proceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessof
accountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisof
accountingand,basisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonYantaiChangyu’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycauseYantaiChangyutoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,
includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationofthe
entitiesorbusinessactivitieswithintheGrouptoexpressourauditopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheGroupaudit.Weremainsolelyresponsibleforourauditopinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2405429
Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements(continued)Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependenceand,whereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
KPMGHuazhenLLPCertifiedPublicAccountantsRegistered(Stamp)inthePeople’sRepublicofChina
WangTing(EngagementPartner)(Signatureandstamp)
Beijing,ChinaJiangHui
(Signatureandstamp)Date:10April2024
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2023(ExpressedinRenminbiYuan)
Note
| Note | 31December2023 | 31December2022 | |
| Assets | |||
| Currentassets | |||
| Cashatbankandonhand | V.1 | 2,217,693,647 | 1,651,454,115 |
| Billsreceivable | V.2 | 1,260,000 | 2,712,460 |
| Accountsreceivable | V.3 | 382,132,334 | 343,982,985 |
| Receivablesunderfinancing | V.4 | 408,316,028 | 309,329,918 |
| Prepayments | V.5 | 61,497,933 | 60,415,508 |
| Otherreceivables | V.6 | 71,496,276 | 70,542,398 |
| Inventories | V.7 | 2,765,390,587 | 2,903,398,515 |
| Othercurrentassets | V.8 | 88,368,542 | 185,337,393 |
| Totalcurrentassets | 5,996,155,347 | 5,527,173,292 | |
| Non-currentassets | |||
| Long-termequityinvestments | V.9 | 38,285,620 | 41,371,385 |
| Investmentproperties | V.10 | 24,482,831 | 22,115,318 |
| Fixedassets | V.11 | 5,795,082,569 | 6,028,137,972 |
| Constructioninprogress | V.12 | 3,323,241 | 40,934,161 |
| Bearerbiologicalassets | V.13 | 177,461,983 | 184,420,741 |
| Right-of-useassets | V.14 | 121,745,910 | 139,887,159 |
| Intangibleassets | V.15 | 542,625,776 | 578,240,846 |
| Goodwill | V.16 | 107,163,616 | 107,163,616 |
| Long-termdeferredexpenses | V.17 | 306,662,107 | 274,699,232 |
| Deferredtaxassets | V.18 | 221,518,204 | 227,362,656 |
| Othernon-currentassets | V.19 | 1,760,000 | - |
| Totalnon-currentassets | 7,340,111,857 | 7,644,333,086 | |
| Totalassets | 13,336,267,204 | 13,171,506,378 |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2023(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2023 | 31December2022 | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities | |||
| Short-termloans | V.20 | 364,981,445 | 389,378,480 |
| Accountspayable | V.21 | 473,352,525 | 503,323,746 |
| Contractliabilities | V.22 | 175,278,849 | 165,727,991 |
| Employeebenefitspayable | V.23 | 185,331,292 | 182,951,538 |
| Taxespayable | V.24 | 274,723,431 | 239,695,902 |
| Otherpayables | V.25 | 555,634,336 | 372,608,689 |
| Othercurrentliabilities | V.26 | 44,958,297 | 18,945,706 |
| Non-currentliabilitiesduewithinoneyear | V.27 | 78,523,993 | 144,020,834 |
| Totalcurrentliabilities | 2,152,784,168 | 2,016,652,886 | |
| Non-currentliabilities | |||
| Long-termloans | V.28 | 66,616,443 | 128,112,115 |
| Leaseliabilities | V.29 | 85,038,335 | 109,505,093 |
| Long-termpayables | V.30 | - | 42,000,000 |
| Deferredincome | V.31 | 32,582,734 | 38,389,058 |
| Deferredtaxliabilities | V.18 | 8,719,729 | 11,266,932 |
| Totalnon-currentliabilities | 192,957,241 | 329,273,198 | |
| Totalliabilities | 2,345,741,409 | 2,345,926,084 |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2023(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2023 | 31December2022 | |
| Liabilitiesandshareholders’equity(continued) | |||
| Shareholders’equity | |||
| Sharecapital | V.32 | 692,249,559 | 685,464,000 |
| Capitalreserve | V.33 | 651,086,707 | 524,968,760 |
| Less：Treasurystock | V.34 | 103,411,919 | - |
| Othercomprehensiveincome | V.35 | (14,784,677) | (23,760,238) |
| Surplusreserve | V.36 | 342,732,000 | 342,732,000 |
| Retainedearnings | V.37 | 9,273,629,318 | 9,049,649,211 |
| TotalequityattributabletoshareholdersoftheCompany | 10,841,500,988 | 10,579,053,733 | |
| Non-controllinginterests | 149,024,807 | 246,526,561 | |
| Totalshareholders’equity | 10,990,525,795 | 10,825,580,294 | |
| Totalliabilitiesandshareholders’equity | 13,336,267,204 | 13,171,506,378 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2023(ExpressedinRenminbiYuan)
Note
| Note | 31December2023 | 31December2022 | |
| Assets | |||
| Currentassets | |||
| Cashatbankandonhand | 1,242,484,544 | 874,241,771 | |
| Accountsreceivable | 5,189,894 | 2,301,505 | |
| Receivablesunderfinancing | XVII.1 | 36,322,019 | 41,061,417 |
| Prepayments | 52,587 | 3,518,783 | |
| Otherreceivables | XVII.2 | 576,949,997 | 720,176,320 |
| Inventories | 323,465,919 | 335,031,522 | |
| Othercurrentassets | 147,187 | 20,080,844 | |
| Totalcurrentassets | 2,184,612,147 | 1,996,412,162 | |
| Non-currentassets | |||
| Long-termequityinvestments | XVII.3 | 7,648,498,638 | 7,705,853,378 |
| Investmentproperties | 24,482,831 | 22,115,318 | |
| Fixedassets | 194,601,612 | 216,651,596 | |
| Constructioninprogress | 264,175 | 375,969 | |
| Bearerbiologicalassets | 100,785,279 | 108,370,882 | |
| Right-of-useassets | 37,025,896 | 36,153,799 | |
| Intangibleassets | 72,552,201 | 75,298,044 | |
| Deferredtaxassets | 2,327,585 | 12,120,605 | |
| Othernon-currentassets | 1,934,430,000 | 1,850,200,000 | |
| Totalnon-currentassets | 10,014,968,217 | 10,027,139,591 | |
| Totalassets | 12,199,580,364 | 12,023,551,753 |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2023(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2023 | 31December2022 | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities | |||
| Short-termloans | 100,000,000 | 100,000,000 | |
| Accountspayable | 63,686,113 | 100,583,550 | |
| Employeebenefitspayable | 68,654,350 | 68,112,832 | |
| Taxespayable | 6,439,899 | 39,101,259 | |
| Otherpayables | 608,904,995 | 499,751,275 | |
| Non-currentliabilitiesduewithinoneyear | 3,803,910 | 5,129,607 | |
| Totalcurrentliabilities | 851,489,267 | 812,678,523 | |
| Non-currentliabilities | |||
| Leaseliabilities | 42,380,074 | 38,757,167 | |
| Deferredincome | 55,718 | 877,814 | |
| Totalnon-currentliabilities | 42,435,792 | 39,634,981 | |
| Totalliabilities | 893,925,059 | 852,313,504 |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2023(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2023 | 31December2022 | |
| Liabilitiesandshareholders’equity(continued) | |||
| Shareholders’equity | |||
| Sharecapital | 692,249,559 | 685,464,000 | |
| Capitalreserve | 687,544,350 | 560,182,235 | |
| Less：Treasurystock | 103,411,919 | - | |
| Surplusreserve | 342,732,000 | 342,732,000 | |
| Retainedearnings | 9,686,541,315 | 9,582,860,014 | |
| Totalshareholders’equity | 11,305,655,305 | 11,171,238,249 | |
| Totalliabilitiesandshareholders’equity | 12,199,580,364 | 12,023,551,753 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2023(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| I.Operatingincome | V.38 | 4,384,764,335 | 3,918,941,160 |
| Less:Operatingcosts | V.38 | 1,786,983,657 | 1,680,794,732 |
| Taxesandsurcharges | V.39 | 349,735,571 | 289,656,627 |
| Sellinganddistributionexpenses | V.40 | 1,239,782,776 | 1,028,966,138 |
| Generalandadministrativeexpenses | V.41 | 303,990,858 | 287,605,531 |
| Researchanddevelopmentexpenses | 17,413,534 | 15,431,310 | |
| Financialexpenses | V.42 | 11,083,459 | 7,256,207 |
| Including:Interestexpenses | 35,800,097 | 26,856,890 | |
| Interestincome | 30,571,465 | 24,186,351 | |
| Add:Otherincome | V.43 | 51,523,799 | 33,145,440 |
| Investmentincome/(losses) | V.44 | 23,847,450 | (3,447,794) |
| Including:Lossesfrominvestmentassociatesandinjointventures | (712,480) | (1,605,469) | |
| Creditreversal | V.45 | 1,397,658 | 4,752,797 |
| Impairmentlosses | V.46 | (13,506,958) | (5,789,670) |
| Lossesfromdisposalofassets | V.47 | (134,133) | (16,191,903) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2023(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| II.Operatingprofit | 738,902,296 | 621,699,485 | |
| Add:Non-operatingincome | V.48 | 11,992,270 | 6,832,809 |
| Less:Non-operatingexpenses | V.48 | 3,428,410 | 2,949,991 |
| III.Profitbeforeincometax | 747,466,156 | 625,582,303 | |
| Less:Incometaxexpenses | V.49 | 221,433,447 | 194,233,589 |
| IV.Netprofit | 526,032,709 | 431,348,714 | |
| (1)Netprofitclassifiedbycontinuityofoperations: | |||
| 1.Netprofitfromcontinuingoperations | 526,032,709 | 431,348,714 | |
| 2.Netprofitfromdiscontinuedoperations | - | - | |
| (2)Netprofitclassifiedbyownership: | |||
| 1.NetprofitattributabletoshareholdersoftheCompany | 532,438,907 | 428,681,411 | |
| 2.Non-controllingnet(losses)/interests | (6,406,198) | 2,667,303 | |
| V.Othercomprehensiveincome,netoftax | 9,519,495 | 12,282,545 | |
| (1)Othercomprehensiveincome(netoftax)attributabletoshareholdersoftheCompany | 8,975,561 | 10,946,939 | |
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | 8,975,561 | 10,946,939 | |
| (2)Othercomprehensiveincome(netoftax)attributabletonon-controllinginterests | 543,934 | 1,335,606 |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2023(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| VI.Totalcomprehensiveincomefortheyear | 535,552,204 | 443,631,259 | |
| (1)AttributabletoshareholdersoftheCompany | 541,414,468 | 439,628,350 | |
| (2)Attributabletonon-controllinginterests | (5,862,264) | 4,002,909 | |
| VII.Earningspershare: | |||
| (1)Basicearningspershare | V.50 | 0.78 | 0.63 |
| (2)Dilutedearningspershare | V.50 | 0.78 | 0.63 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2023
(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| I.Operatingincome | XVII.4 | 731,158,954 | 675,062,421 |
| Less:Operatingcost | XVII.4 | 621,636,564 | 577,316,851 |
| Taxesandsurcharges | 26,163,038 | 27,984,695 | |
| Generalandadministrativeexpenses | 60,054,424 | 58,441,386 | |
| Researchanddevelopmentexpenses | 1,127,242 | 2,674,191 | |
| Financialexpenses | (2,756,864) | (4,912,837) | |
| Including:Interestexpenses | 3,184,460 | 3,238,235 | |
| Interestincome | 10,213,608 | 10,840,336 | |
| Add:Otherincome | 3,219,830 | 5,318,209 | |
| Investmentincome | XVII.5 | 439,250,529 | 736,516,479 |
| Impairmentlosses | (42,274,055) | - | |
| Proceedsfromthedisposalofassets | - | 33,453 | |
| II.Operatingprofit | 425,130,854 | 755,426,276 | |
| Add:Non-operatingincome | 386,193 | 3,665,752 | |
| Less:Non-operatingexpenses | 1,258,048 | 1,281,047 |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2023(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| III.Profitbeforeincometax | 424,258,999 | 757,810,981 | |
| Less:Incometaxexpenses | 12,118,898 | 8,053,832 | |
| IV.Netprofit | 412,140,101 | 749,757,149 | |
| (i)Netprofitfromcontinuingoperations | 412,140,101 | 749,757,149 | |
| (ii)Netprofitfromdiscontinuedoperations | - | - | |
| V.Othercomprehensiveincome,netoftax | - | - | |
| VI.Totalcomprehensiveincomefortheyear | 412,140,101 | 749,757,149 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2023(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 4,362,027,268 | 3,681,133,282 | |
| Refundoftaxes | 37,827,698? | 186,197,815 | |
| Proceedsfromotheroperatingactivities | V.51(1) | 219,385,622 | 61,825,407 |
| Sub-totalofcashinflows | 4,619,240,588 | 3,929,156,504 | |
| Paymentforgoodsandservices | 1,368,282,215 | 1,266,006,299 | |
| Paymenttoandforemployees | 491,419,621 | 493,589,542 | |
| Paymentofvarioustaxes | 910,748,260 | 718,434,215 | |
| Paymentforotheroperatingactivities | V.51(1) | 675,698,749 | 582,249,801 |
| Sub-totalofcashoutflows | 3,446,148,845 | 3,060,279,857 | |
| Netcashflowsfromoperatingactivities | V.52(1) | 1,173,091,743 | 868,876,647 |
| II.Cashflowsfrominvestingactivities: | |||
| Proceedsfromdisposalofinvestments | 238,200,000? | 133,200,000 | |
| Investmentreturnsreceived | 3,196,066? | 1,340,518 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 10,529,793 | 28,412,630 | |
| Netproceedsfromdisposalofsubsidiariesandotherbusinessunits | V.52(2) | 20,308,625 | - |
| Netproceedsfromacquisitionofsubsidiariesandotherbusinessunits | V.52(2) | 657,049 | - |
| Sub-totalofcashinflows | 272,891,533 | 162,953,148 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 132,032,219 | 198,791,362 | |
| Paymentforacquisitionofinvestments | 464,200,000 | 108,200,000 | |
| Sub-totalofcashoutflows | 596,232,219? | 306,991,362 | |
| Netcashflowsfrominvestingactivities | (323,340,686) | (144,038,214) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2023(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| III.Cashflowsfromfinancingactivities: | ? | ||
| Proceedsfrominvestors | 103,411,919 | - | |
| Proceedsfromborrowings | 573,859,507 | 641,331,495 | |
| Sub-totalofcashinflows | 677,271,426? | 641,331,495 | |
| Repaymentsofborrowings | 768,253,239 | 903,179,998 | |
| Paymentfordividends,profitdistributionsorinterest | 341,454,132 | 333,134,330 | |
| Paymentforotherfinancingactivities | V.51(3) | 67,229,123 | 19,774,744 |
| Sub-totalofcashoutflows | 1,176,936,494 | 1,256,089,072 | |
| Netcashflowsfromfinancingactivities | (499,665,068) | (614,757,577) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | 316,163 | 345,715 | |
| V.Netincreaseincashandcashequivalents | V.52(1) | 350,402,152 | 110,426,571 |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 1,612,753,600 | 1,502,327,029 | |
| VI.Cashandcashequivalentsattheendoftheyear | V.52(2) | 1,963,155,752 | 1,612,753,600 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2023
(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 673,455,798 | 610,597,839 | |
| Taxreturnsreceived | - | 1,597,879 | |
| Proceedsfromotheroperatingactivities | 12,473,241 | 84,262,490 | |
| Sub-totalofcashinflows | 685,929,039 | 696,458,208 | |
| Paymentforgoodsandservices | 611,290,566 | 401,136,965 | |
| Paymenttoandforemployees | 60,646,447 | 67,906,188 | |
| Paymentofvarioustaxes | 62,523,754 | 50,709,754 | |
| Paymentforotheroperatingactivities | 28,861,990 | 23,452,120 | |
| Sub-totalofcashoutflows | 763,322,757 | 543,205,027 | |
| Netcashflowsfromoperatingactivities | (77,393,718) | 153,253,181 | |
| II.Cashflowsfrominvestingactivities: | |||
| Proceedsfromdisposalofinvestments | 262,833,449 | 118,200,000 | |
| Investmentreturnsreceived | 729,828,424 | 489,479,719 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 576,150 | 175,978 | |
| Netproceedsfromdisposalofsubsidiariesandotherbusinessunits | 17,965,519 | 1,677,331 | |
| Proceedsfromborrowingstosubsidiaries | 10,000,000 | 312,000,000 | |
| Sub-totalofcashinflows | 1,021,203,542 | 921,533,028 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 7,116,731 | 21,831,779 | |
| Paymentforacquisitionofinvestments | 478,823,400 | 218,200,000 | |
| Netpaymentforacquisitionofsubsidiariesandotherbusinessunits | 5,537,700 | - | |
| Cashpaidtosubsidiaries | 94,230,000 | 138,700,000 | |
| Sub-totalofcashoutflows | 585,707,831 | 378,731,779 | |
| Netcashflowsfrominvestingactivities | 435,495,711 | 542,801,249 |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2023(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2023 | 2022 | |
| III.Cashflowsfromfinancingactivities: | |||
| Proceedsfrominvestors | 103,411,919 | - | |
| Proceedsfromborrowings | 100,000,000 | 100,000,000 | |
| Sub-totalofcashinflows | 203,411,919 | 100,000,000 | |
| Repaymentsofborrowings | 100,000,000 | 150,000,000 | |
| Paymentfordividendsorinterest | 311,643,260 | 311,697,035 | |
| Paymentforotherfinancingactivities | 4,956,105 | 4,796,838 | |
| Sub-totalofcashoutflows | 416,599,365 | 466,493,873 | |
| Netcashflowsfromfinancingactivities | (213,187,446) | (366,493,873) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | - | - | |
| V.Netincreaseincashandcashequivalents | 144,914,547 | 329,560,557 | |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 843,369,997 | 513,809,440 | |
| VI.Cashandcashequivalentsattheendoftheyear | 988,284,544 | 843,369,997 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equityfortheyearended31December2023
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | |||||||
| Sharecapital | Capitalreserve | Less:Treasury-Stock | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 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 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | ? | ? | ? | ||
| 1.Totalcomprehensiveincome | - | - | - | 8,975,561 | - | 532,438,907 | 541,414,468 | (5,862,264) | 535,552,204 | |
| 2.Shareholders’contributionsanddecreaseofcapital | ||||||||||
| (1).EffectsofRestrictedShareIncentivePlan | V.32 | 6,785,559 | 127,362,115 | (103,411,919) | - | - | - | 30,735,755 | - | 30,735,755 |
| (2).Acquisitionofnon-controllinginterests | VIII.2 | - | (1,244,168) | - | - | - | - | (1,244,168) | (31,502,609) | (32,746,777) |
| 3.Appropriationofprofits | ? | ? | ? | ? | ? | ? | ? | ? | ||
| Distributionstoshareholders | V.37 | - | - | - | - | - | (308,458,800) | (308,458,800) | (1,538,316) | (309,997,116) |
| 4.Others | ||||||||||
| Disposalofequitiesinsubsidiaries | - | - | - | - | - | - | - | (58,598,565) | (58,598,565) | |
| III.Balanceattheendoftheyear | 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 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equity(continued)fortheyearended31December2022
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 685,464,000 | 524,968,760 | (34,707,177) | 342,732,000 | 8,929,426,600 | 10,447,884,183 | 244,792,421 | 10,692,676,604 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | ? | ? | ? | |
| (1)Totalcomprehensiveincome | - | - | 10,946,939 | - | 428,681,411 | 439,628,350 | 4,002,909 | 443,631,259 | |
| (2)Appropriationofprofits | ? | ? | ? | ? | ? | ? | ? | ? | |
| Distributionstoshareholders | V.37 | - | - | - | - | (308,458,800) | (308,458,800) | (2,268,769) | (310,727,569) |
| III.Balanceattheendoftheyear | 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 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2023
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Less:Treasury-Stock | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 685,464,000 | 560,182,235 | - | 342,732,000 | 9,582,860,014 | 11,171,238,249 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | ||
| (1)Totalcomprehensiveincome | - | - | - | - | 412,140,101 | 412,140,101 | |
| (2)Contributionbyowners | |||||||
| EffectsofRestrictedShareIncentivePlan | 6,785,559 | 127,362,115 | (103,411,919) | - | - | 30,735,755 | |
| (3)Appropriationofprofits | ? | ? | ? | ? | ? | ||
| Distributionstoshareholders | - | - | - | - | (308,458,800) | (308,458,800) | |
| III.Balanceattheendoftheyear | 692,249,559 | 687,544,350 | (103,411,919) | 342,732,000 | 9,686,541,315 | 11,305,655,305 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2022(continued)
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 9,141,561,665 | 10,729,939,900 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | |
| (1)Totalcomprehensiveincome | - | - | - | 749,757,149 | 749,757,149 | |
| (2)Appropriationofprofits | ? | ? | ? | ? | ? | |
| Distributionstoshareholders | - | - | - | (308,458,800) | (308,458,800) | |
| III.Balanceattheendoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 9,582,860,014 | 11,171,238,249 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon10April2024..
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages114to210formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedNotestothefinancialstatements
(ExpressedinRenminbiYuanunlessotherwiseindicated)I.Companystatus
YantaiChangyuPioneerWineCo.,Ltd.(the“Company”orthe“JointStockCompany”)was
incorporatedasajointstocklimitedcompanyinaccordancewiththeCompanyLawofthe
People’sRepublicofChina(the“PRC”)inareorganisationcarriedoutbyYantaiChangyu
GroupCo.,Ltd.(“ChangyuGroup”),inwhichChangyuGroupCompanyinjectedcertain
assetsandliabilitiesinrelationtothewine,brandy,andsparklingwineproductionandsales
businessestotheCompany.TheCompanyanditssubsidiaries(the“Group”)areprincipally
engagedintheproductionandsalesofwine,brandy,sparklingwine,grapegrowingand
acquisition,aswellastravelresourcedevelopment,etc..RegistrationplaceoftheCompany
isYantai,Shandong.HeadquarteroftheCompanyislocatedatNo.56DaMaLu,Zhifu
District,Yantai,Shandong,PRC.
Asat31December2023thetotalsharesissuedbytheCompanyamountsto692,249,559
shares.PleaserefertoNoteV.32indetail.
TheholdingcompanyoftheGroupisChangyuGroupCompany,whichisjointlycontrolledby
YantaiGuoFengInvestmentHoldingLtd.,ILLVASARONNOHOLDINGSPA,International
FinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited.
Thefinancialstatementshavebeenauthorisedbytheboardofdirectorson10April2024.
AccordingtotheCompany’sarticlesofassociation,thefinancialstatementswillbereviewed
byshareholdersontheshareholder’smeeting.
Forconsolidationscopeoftheyear,pleaserefertoNoteVIII“Equityinotherentities”indetail.II.Basisofpreparation
Thefinancialstatementshavebeenpreparedonthegoingconcernbasis.III.Significantaccountingpoliciesandaccountingestimates1Statementofcompliance
Thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsof
AccountingStandardsforBusinessEnterprisesorreferredtoasChinaAccountingStandards
(“CAS”)issuedbytheMOF.Thesefinancialstatementspresenttrulyandcompletelythe
consolidatedfinancialpositionandfinancialpositionoftheCompanyasat31December
2023,andtheconsolidatedfinancialperformanceandfinancialperformanceandthe
consolidatedcashflowsandcashflowsoftheCompanyfortheyearthenended.
Thesefinancialstatementsalsocomplywiththedisclosurerequirementsof“Regulationon
thePreparationofInformationDisclosuresbyCompaniesIssuingSecurities,No.15:General
RequirementsforFinancialReports”asrevisedbytheChinaSecuritiesRegulatory
Commission(“CSRC”)in2023.
2Accountingperiod
Theaccountingperiodisfrom1Januaryto31December.3Operatingcycle
TheCompanytakestheperiodfromtheacquisitionofassetsforprocessingtountilthe
ultimaterealisationofcashorcashequivalentsasanormaloperatingcycle.Theoperating
cycleoftheCompanyis12months.4Functionalcurrency
Renminbi(“RMB”)isthecurrencyoftheprimaryeconomicenvironmentinwhichthe
Companyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomestic
subsidiarieschooseRMBastheirfunctionalcurrency.Overseassubsidiariesofthe
CompanyadoptEuro,ChileanPesoandAustralianDollarastheirfunctionalcurrenciesonthe
basisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadopts
RMBtoprepareitsfinancialstatements.5Methodusedtodeterminethematerialitythresholdandthebasisforselection
Item
| Item | Materialitythreshold |
| Significantotherpayables/accountspayablewithageingofmorethanoneyear | Amountoftheindividualotherpayables/accountspayablewithageingofmorethan1yearexceeds0.5%oftheGroup’stotalliabilities |
| Significantconstructionprojectsinprogress | Carryingamountoftheindividualconstructioninprogressexceeds0.5%oftheGroup’stotalnon-currentassets |
| Significantnon-wholly-ownedsubsidiaries | Carryingamountofnetassetsattributabletonon-controllingshareholdersofthenon-wholly-ownedsubsidiariesexceeds0.5%oftheGroup’snetassets |
| Significantinvestingandfinancingactivitiesnotrequiringtheuseofcash | Amountoftheindividualcashflowexceedsexceeds0.5%oftheGroup’stotalassets |
6Accountingtreatmentsforbusinesscombinationsinvolvingentitiesundercommoncontrol
andnotundercommoncontrol
AtransactionconstitutesabusinesscombinationwhentheGroupobtainscontrolofoneor
moreentities(oragroupofassetsornetassets).Businesscombinationisclassifiedas
eitherbusinesscombinationsinvolvingenterprisesundercommoncontrolorbusiness
combinationsnotinvolvingenterprisesundercommoncontrol.
Foratransactionnotinvolvingenterprisesundercommoncontrol,theacquirerdetermineswhetheracquiredsetofassetsconstituteabusiness.TheGroupmayelecttoapplythesimplifiedassessmentmethod,theconcentrationtest,todeterminewhetheranacquiredsetofassetsisnotabusiness.Iftheconcentrationtestismetandthesetofassetsisdeterminednottobeabusiness,nofurtherassessmentisneeded.Iftheconcentrationtestisnotmet,theGroupshallperformtheassessmentaccordingtotheguidanceonthedeterminationofabusiness.Whenthesetofassetsthegroupacquireddoesnotconstituteabusiness,acquisitioncostsshouldbeallocatedtoeachidentifiableassetsandliabilitiesattheiracquisition?datefairvalues.Itisnotrequiredtoapplytheaccountingofbusinesscombinationdescribedasbelow.
(1)Businesscombinationsinvolvingentitiesundercommoncontrol
Abusinesscombinationinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination,andthatcontrolisnottransitory.Theassetsacquiredandliabilitiesassumedaremeasuredbasedontheircarryingamountsintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweenthecarryingamountofthenetassetsacquiredandtheconsiderationpaidforthecombination(orthetotalparvalueofsharesissued)isadjustedagainstsharepremiuminthecapitalreserve,withanyexcessadjustedagainstretainedearnings.Anycostsdirectlyattributabletothecombinationarerecognisedinprofitorlosswhenincurred.Thecombinationdateisthedateonwhichonecombiningentityobtainscontrolofothercombiningentities.
(2)Businesscombinationsinvolvingentitiesnotundercommoncontrol
Abusinesscombinationinvolvingentitiesnotundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination.Where(1)theaggregateoftheacquisition-datefairvalueofassetstransferred(includingtheacquirer’spreviouslyheldequityinterestintheacquiree),liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree,exceeds(2)theacquirer’sinterestintheacquisition-datefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceisrecognisedasgoodwill(seeNoteIII.19).If(1)islessthan(2),thedifferenceisrecognisedinprofitorlossforthecurrentperiod.Otheracquisition-relatedcostsareexpensedwhenincurred.Theacquiree’sidentifiableasset,liabilitiesandcontingentliabilities,iftherecognitioncriteriaaremet,arerecognisedbytheGroupattheiracquisition-datefairvalue.Theacquisitiondateisthedateonwhichtheacquirerobtainscontroloftheacquiree.Forabusinesscombinationinvolvingentitiesnotundercommoncontrolandachievedinstages,theGroupremeasuresitspreviously-heldequityinterestintheacquireetoitsacquisition-datefairvalueandrecognisesanyresultingdifferencebetweenthefairvalueandthecarryingamountasinvestmentincomeorothercomprehensiveincomeforthecurrentperiod.Inaddition,anyamountrecognisedinothercomprehensiveincomethatmaybereclassifiedtoprofitorloss,inpriorreportingperiodsrelatingtothepreviously-heldequityinterest,andanyotherchangesintheowners’equityunderequityaccounting,aretransferredtoinvestmentincomeintheperiodinwhichtheacquisitionoccurs(seeNoteIII.12(2)(b)).Ifequityinterestsoftheacquireeheldbeforeacquisition-datewereequityinstrument
investmentsmeasuredatfairvaluethroughothercomprehensiveincome,othercomprehensiveincomerecognisedshallbemovedtoretainedearningsonacquisition-date.7Criteriaofcontrolandpreparationofconsolidatedfinancialstatements
(1)Generalprinciples
ThescopeofconsolidatedfinancialstatementsisbasedoncontrolandtheconsolidatedfinancialstatementscomprisetheCompanyanditssubsidiaries.Controlexistswhentheinvestorhasalloffollowing:powerovertheinvestee;exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.WhenassessingwhethertheGrouphaspower,onlysubstantiverights(heldbytheGroupandotherparties)areconsidered.Thefinancialposition,financialperformanceandcashflowsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.Non-controllinginterestsarepresentedseparatelyintheconsolidatedbalancesheetwithinshareholders’equity.Netprofitorlossattributabletonon-controllingshareholdersispresentedseparatelyintheconsolidatedincomestatementbelowthenetprofitlineitem.Totalcomprehensiveincomeattributabletonon-controllingshareholdersispresentedseparatelyintheconsolidatedincomestatementbelowthetotalcomprehensiveincomelineitem.Whentheamountoflossforthecurrentperiodattributabletothenon-controllingshareholdersofasubsidiaryexceedsthenon-controllingshareholders’shareoftheopeningowners’equityofthesubsidiary,theexcessisstillallocatedagainstthenon-controllinginterests.WhentheaccountingperiodoraccountingpoliciesofasubsidiaryaredifferentfromthoseoftheCompany,theCompanymakesnecessaryadjustmentstothefinancialstatementsofthesubsidiarybasedontheCompany’sownaccountingperiodoraccountingpolicies.Intra-groupbalancesandtransactions,andanyunrealisedprofitorlossarisingfromintra-grouptransactions,areeliminatedwhenpreparingtheconsolidatedfinancialstatements.Unrealisedlossesresultingfromintra-grouptransactionsareeliminatedinthesamewayasunrealisedgains,unlesstheyrepresentimpairmentlossesthatarerecognisedinthefinancialstatements.
(2)Subsidiariesacquiredthroughabusinesscombination
Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesundercommoncontrol,thefinancialstatementsofthesubsidiaryareincludedintheconsolidatedfinancialstatementsbasedonthecarryingamountsoftheassetsandliabilitiesofthesubsidiaryinthefinancialstatementsoftheultimatecontrollingpartyasifthecombinationhadoccurredatthedatethattheultimatecontrollingpartyfirstobtainedcontrol.Theopeningbalancesandthecomparativefiguresoftheconsolidatedfinancialstatementsarealsorestated.Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesnotundercommoncontrol,theidentifiableassetsandliabilitiesoftheacquiredsubsidiariesareincludedinthescopeofconsolidationfromthedatethatcontrolcommences,basedonthefairvalueofthoseidentifiableassetsandliabilitiesattheacquisitiondate.
(3)Disposalofsubsidiaries
WhentheGrouplosescontroloverasubsidiary,anyresultingdisposalgainsorlossesarerecognisedasinvestmentincomeforthecurrentperiod.Theremainingequityinvestmentisre-measuredatitsfairvalueatthedatewhencontrolislost,anyresultinggainsorlossesarealsorecognisedasinvestmentincomeforthecurrentperiod.WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,thefollowingareconsideredtodeterminewhethertheGroupshouldaccountforthemultipletransactionsasabundledtransaction:
-arrangementsareenteredintoatthesametimeorincontemplationofeachother;-arrangementsworktogethertoachieveanoverallcommercialeffect;-theoccurrenceofonearrangementisdependentontheoccurrenceofatleastoneother
arrangement;-onearrangementconsideredonitsownisnoteconomicallyjustified,butitiseconomically
justifiedwhenconsideredtogetherwithotherarrangements.Ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposalofequityinvestmentinsubsidiarieswherecontrolisretained(seeNoteIII.7(4)).Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognisedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.
(4)Changesinnon-controllinginterests
WheretheCompanyacquiresanon-controllinginterestfromasubsidiary’snon-controllingshareholdersordisposesofaportionofaninterestinasubsidiarywithoutachangeincontrol,thedifferencebetweentheproportioninterestsofthesubsidiary’snetassetsbeingacquiredordisposedandtheamountoftheconsiderationpaidorreceivedisadjustedtothecapitalreserve(sharepremium)intheconsolidatedbalancesheet,withanyexcessadjustedtoretainedearnings.8Cashandcashequivalents
Cashandcashequivalentscomprisecashonhand,depositsthatcanbereadilywithdrawondemand,andshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandaresubjecttoaninsignificantriskofchangeinvalue.9Foreigncurrencytransactionsandtranslationofforeigncurrencyfinancialstatements
WhentheGroupreceivescapitalinforeigncurrenciesfrominvestors,thecapitalistranslatedtoRenminbiatthespotexchangerateatthedateofthereceipt.Otherforeigncurrencytransactionsare,oninitialrecognition,translatedtoRenminbiatthespotexchangerates.
MonetaryitemsdenominatedinforeigncurrenciesaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Theresultingexchangedifferencesaregenerallyrecognisedinprofitorloss,unlesstheyarisefromthere-translationoftheprincipalandinterestofspecificborrowingsfortheacquisitionandconstructionofqualifyingassets(seeNoteIII.16).Non-monetaryitemsthataremeasuredathistoricalcostinforeigncurrenciesaretranslatedtoRenminbiusingtheexchangerateatthetransactiondate.Intranslatingthefinancialstatementsofaforeignoperation,assetsandliabilitiesofforeignoperationaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Equityitems,excludingretainedearningsandthetranslationdifferencesinothercomprehensiveincome,aretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.IncomeandexpensesintheincomestatementaretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.Theresultingtranslationdifferencesarerecognisedinothercomprehensiveincome.Thetranslationdifferencesaccumulatedinothercomprehensiveincomewithrespecttoaforeignoperationaretransferredtoprofitorlossintheperiodwhentheforeignoperationisdisposed.10Financialinstruments
Financialinstrumentsincludecashatbankandonhand,investmentsindebtandequitysecuritiesotherthanthoseclassifiedaslong-termequityinvestments(seeNoteIII.12),receivables,payables,loansandborrowingsandsharecapital.
(1)Recognitionandinitialmeasurementoffinancialassetsandfinancialliabilities
AfinancialassetorfinancialliabilityisrecognisedinthebalancesheetwhentheGroupbecomesapartytothecontractualprovisionsofafinancialinstrument.Afinancialassets(unlessitisatradereceivablewithoutasignificantfinancingcomponent)andfinancialliabilitiesismeasuredinitiallyatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,anyrelateddirectlyattributabletransactioncostsarechargedtoprofitorloss;forothercategoriesoffinancialassetsandfinancialliabilities,anyrelateddirectlyattributabletransactioncostsareincludedintheirinitialcosts.Atradereceivable,withoutsignificantfinancingcomponentorpracticalexpedientappliedforoneyearorlesscontracts,isinitiallymeasuredatthetransactionpriceinaccordancewithNoteIII.25.
(2)Classificationandsubsequentmeasurementoffinancialassets
(a)Classificationoffinancialassets
Theclassificationoffinancialassetsisgenerallybasedonthebusinessmodelinwhichafinancialassetismanagedanditscontractualcashflowcharacteristics.Oninitialrecognition,afinancialassetisclassifiedasmeasuredatamortisedcost,atfairvaluethroughothercomprehensiveincome(“FVOCI”),oratfairvaluethroughprofitorloss(“FVTPL”).FinancialassetsarenotreclassifiedsubsequenttotheirinitialrecognitionunlesstheGroupchangesitsbusinessmodelformanagingfinancialassetsinwhichcaseallaffectedfinancialassetsarereclassifiedonthefirstdayofthefirstreportingperiodfollowingthechangeinthebusinessmodel.
AfinancialassetismeasuredatamortisedcostifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveistoholdassetstocollect
contractualcashflows;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.AdebtinvestmentismeasuredatFVOCIifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollecting
contractualcashflowsandsellingfinancialassets;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolely
paymentsofprincipalandinterestontheprincipalamountoutstanding.Oninitialrecognitionofanequityinvestmentthatisnotheldfortrading,theGroupmayirrevocablyelecttopresentsubsequentchangesintheinvestment’sfairvalueinothercomprehensiveincome.Thiselectionismadeonaninvestment-by-investmentbasis.Theinstrumentmeetsthedefinitionofequityfromtheperspectiveoftheissuer.AllfinancialassetsnotclassifiedasmeasuredatamortisedcostorFVOCIasdescribedabovearemeasuredatFVTPL.Oninitialrecognition,theGroupmayirrevocablydesignateafinancialassetthatotherwisemeetstherequirementstobemeasuredatamortisedcostoratFVOCIasatFVTPLifdoingsoeliminatesorsignificantlyreducesanaccountingmismatchthatwouldotherwisearise.ThebusinessmodelreferstohowtheGroupmanagesitsfinancialassetsinordertogeneratecashflows.Thatis,theGroup’sbusinessmodeldetermineswhethercashflowswillresultfromcollectingcontractualcashflows,sellingfinancialassetsorboth.TheGroupdeterminesthebusinessmodelformanagingthefinancialassetsaccordingtothefactsandbasedonthespecificbusinessobjectiveformanagingthefinancialassetsdeterminedbytheGroup’skeymanagementpersonnel.Inassessingwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterest,theGroupconsidersthecontractualtermsoftheinstrument.Forthepurposesofthisassessment,‘principal’isdefinedasthefairvalueofthefinancialassetoninitialrecognition.‘Interest’isdefinedasconsiderationforthetimevalueofmoneyandforthecreditriskassociatedwiththeprincipalamountoutstandingduringaparticularperiodoftimeandforotherbasiclendingrisksandcosts,aswellasaprofitmargin.TheGroupalsoassesseswhetherthefinancialassetcontainsacontractualtermthatcouldchangethetimingoramountofcontractualcashflowssuchthatitwouldnotmeetthiscondition.(b)Subsequentmeasurementoffinancialassets
-FinancialassetsatFVTPL
Thesefinancialassetsaresubsequentlymeasuredatfairvalue.Netgainsand
losses,includinganyinterestordividendincome,arerecognisedinprofitorloss
unlessthefinancialassetsarepartofahedgingrelationship.
-Financialassetsatamortisedcost
Theseassetsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Againorlossonafinancialassetthatismeasuredatamortisedcostandisnotpartofahedgingrelationshipshallberecognisedinprofitorlosswhenthefinancialassetisderecognised,reclassified,throughtheamortisationprocessorinordertorecogniseimpairmentgainsorlosses.-DebtinvestmentsatFVOCI
Theseassetsaresubsequentlymeasuredatfairvalue.Interestincomecalculatedusingtheeffectiveinterestmethod,impairmentandforeignexchangegainsandlossesarerecognisedinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoprofitorloss.-EquityinvestmentsatFVOCI
Theseassetsaresubsequentlymeasuredatfairvalue.Dividendsarerecognisedasincomeinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoretainedearnings.
(3)Classificationandsubsequentmeasurementoffinancialliabilities
FinancialliabilitiesareclassifiedasmeasuredatFVTPLoramortisedcostbytheGroup.-FinancialliabilitiesatFVTPL
AfinancialliabilityisclassifiedasatFVTPLifitisclassifiedasheld-for-trading(includingderivativefinancialliability)oritisdesignatedassuchoninitialrecognition.FinancialliabilitiesatFVTPLaresubsequentlymeasuredatfairvalueandnetgainsandlosses,includinganyinterestexpense,arerecognisedinprofitorloss,unlessthefinancialliabilitiesarepartofahedgingrelationship.-Financialliabilitiesatamortisedcost
Thesefinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
(4)Offsetting
Financialassetsandfinancialliabilitiesaregenerallypresentedseparatelyinthebalancesheet,andarenotoffset.However,afinancialassetandafinancialliabilityareoffsetandthenetamountispresentedinthebalancesheetwhenbothofthefollowingconditionsaresatisfied:
-TheGroupcurrentlyhasalegallyenforceablerighttosetofftherecognisedamounts;-TheGroupintendseithertosettleonanetbasis,ortorealisethefinancialassetandsettlethefinancialliabilitysimultaneously.
(5)Derecognitionoffinancialassetsandfinancialliabilities
Financialassetisderecognisedwhenoneofthefollowingconditionsismet:
-theGroup’scontractualrightstothecashflowsfromthefinancialassetexpire;-thefinancialassethasbeentransferredandtheGrouptransferssubstantiallyallofthe
risksandrewardsofownershipofthefinancialasset;or;-thefinancialassethasbeentransferred,althoughtheGroupneithertransfersnorretains
substantiallyalloftherisksandrewardsofownershipofthefinancialasset,itdoesnot
retaincontroloverthetransferredasset.Whereatransferofafinancialassetinitsentiretymeetsthecriteriaforderecognition,thedifferencebetweenthetwoamountsbelowisrecognisedinprofitorloss:
-thecarryingamountofthefinancialassettransferredmeasuredatthedateof
derecognition;-thesumoftheconsiderationreceivedfromthetransferand,whenthetransferredfinancial
assetisadebtinvestmentatFVOCI,anycumulativegainorlossthathasbeenrecognised
directlyinothercomprehensiveincomeforthepartderecognised.TheGroupderecognisesafinancialliability(orpartofit)onlywhenitscontractualobligation(orpartofit)isextinguished.
(6)Impairment
TheGrouprecogniseslossallowancesforexpectedcreditloss(ECL)on:
-financialassetsmeasuredatamortisedcost;-financialinvestmentsatfairvaluethroughothercomprehensiveincomeFinancialassetsmeasuredatfairvalue,includingdebtinvestmentsorequitysecuritiesatFVPL,equitysecuritiesdesignatedatFVOCIandderivativefinancialassets,arenotsubjecttotheECLassessment.MeasurementofECLsECLsareaprobability-weightedestimateofcreditlosses.Creditlossesaremeasuredasthepresentvalueofallcashshortfalls(i.e.thedifferencebetweenthecashflowsduetotheentityinaccordancewiththecontractandthecashflowsthattheGroupexpectstoreceive).ThemaximumperiodconsideredwhenestimatingECLsisthemaximumcontractualperiod(includingextensionoptions)overwhichtheGroupisexposedtocreditrisk.LifetimeECLsaretheECLsthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.12-monthECLsaretheportionofECLsthatresultfromdefaulteventsthatarepossiblewithinthe12monthsafterthebalancesheetdate(orashorterperiodiftheexpectedlifeoftheinstrumentislessthan12months).
Lossallowancesforbillsreceivable,accountsreceivableandreceivablesunderfinancingarisingfromoridinarybusinessactivitiessuchassaleofgoodsandprovisionofservices,arealwaysmeasuredatanamountequaltolifetimeECLs.ECLsonthesefinancialassetsareestimatedusingaprovisionmatrixbasedontheGroup’shistoricalcreditlossexperience,adjustedforfactorsthatarespecifictothedebtorsandanassessmentofboththecurrentandforecastgeneraleconomicconditionsatthebalancesheetdate.Exceptforbillsreceivable,accountsreceivable,receivablesunderfinancing,theGroupmeasureslossallowancesatanamountequalto12-monthECLsforthefollowingfinancialinstruments,andatanamountequaltolifetimeECLsforallotherfinancialinstruments:
-Ifthefinancialinstrumentisdeterminedtohavelowcreditriskatthebalancesheetdate;-Ifthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitial
recognition.Provisionsforbadanddoubtfuldebtsarisingfromreceivables(a)Categoriesofgroupsforcollectiveassessmentbasedoncreditriskcharacteristicsand
basisfordetermination
Billsreceivable
| Billsreceivable | Basedonthedifferentcreditriskcharacteristicsofacceptors,theGroupclassifiesbillsreceivableintotwogroups:bankacceptancebillsandcommercialacceptancebills. |
| Accountsreceivable | Historically,thereisnosignificantdifferenceintermsofoccurrenceoflossesamongdifferentcustomertypesfortheGroup.Therefore,theGroupmakesprovisionsforbadanddoubtfuldebtsarisingfromaccountsreceivableonthebasisofallcustomersbeingonegroupwithoutfurthersegmentationbydifferentcustomertypes. |
| Receivablesunderfinancing | TheGroup’sreceivablesunderfinancingarebankacceptancebillsheldfordualpurposes.Astheacceptingbankshavehighcreditratings,theGroupconsidersallreceivablesunderfinancingasagroup. |
| Otherreceivables | TheGroup’sotherreceivablesmainlyincludedepositsandguaranteesreceivable,ect.Basedonthenatureofreceivablesandthecreditriskcharacteristicsofdifferentcounterparties,theGroupclassifiesotherreceivablesinto2groups,specifically:thegroupofdepositsandguaranteesreceivableandthegroupofotherreceivables. |
(b)Criteriaforindividualassessment
Billsreceivable,accountsreceivable,receivablesunderfinancing,andotherreceivablesareusuallyassessedcollectivelyasagroupbasedoncreditriskcharacteristicstomakeprovisions.Whenacounterpartyissignificantlydifferentfromothercounterpartiesinthegroupintermsofcreditriskcharacteristics,oriftherehasbeenasignificantchangeinitscreditriskcharacteristics,theindividualapproachisadoptedforreceivablesduefromthiscounterparty.Forexample,whenacounterpartyisinseriousfinancialdifficultiesandtheexpectedcreditlossratioofreceivablesduefromthiscounterpartyissignificantlyhigherthantheaverageexpectedcreditlossratiooftherelevantageingrange,itshouldbeindividualyassessedforprovisioningpurposes.
FinancialinstrumentsthathavelowcreditriskThecreditriskonafinancialinstrumentisconsideredlowifthefinancialinstrumenthasalowriskofdefault,theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandadversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.SignificantincreasesincreditriskInassessingwhetherthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofdefaultoccurringonthefinancialinstrumentassessedatthebalancesheetdatewiththatassessedatthedateofinitialrecognition.WhendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognitionandwhenestimatingECL,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort,includingforward-lookinginformation.Inparticular,thefollowinginformationistakenintoaccount:
-failuretomakepaymentsofprincipalandinterestontheircontractuallyduedates;-anactualorexpectedsignificantdeteriorationinafinancialinstrument’sexternalorinternal
creditrating(ifavailable);-anactualorexpectedsignificantdeteriorationintheoperatingresultsofthedebtor;and-existingorforecastchangesinthetechnological,market,economicorlegalenvironmentthathaveasignificantadverseeffectonthedebtor’sabilitytomeetitsobligationtotheGroup.Dependingonthenatureofthefinancialinstruments,theassessmentofasignificantincreaseincreditriskisperformedoneitheranindividualbasisoracollectivebasis.Whentheassessmentisperformedonacollectivebasis,thefinancialinstrumentsaregroupedbasedonsharedcreditriskcharacteristics,suchaspastduestatusandcreditriskratings.TheGroupassumesthatthecreditriskonafinancialassethasincreasedsignificantlyifitismorethan30dayspastdue.Credit-impairedfinancialassetsAteachbalancesheetdate,theGroupassesseswhetherfinancialassetscarriedatamortisedcostanddebtinvestmentsatFVOCIarecredit-impaired.Afinancialassetis‘credit-impaired’whenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowsofthefinancialassethaveoccurred.Evidencethatafinancialassetiscredit-impairedincludesthefollowingobservabledata:
-significantfinancialdifficultyoftheborrowerorissuer;-abreachofcontract,suchasadefaultordelinquencyininterestorprincipalpayments;-foreconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficulty,theGroup
havinggrantedtotheborroweraconcessionthatwouldnototherwiseconsider;-itisprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;or-thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancial
difficulties.PresentationofallowanceforECL
ECLsareremeasuredateachbalancesheetdatetoreflectchangesinthefinancialinstrument’screditrisksinceinitialrecognition.AnychangeintheECLamountisrecognisedasanimpairmentgainorlossinprofitorloss.TheGrouprecognisesanimpairmentgainorlossforallfinancialinstrumentswithacorrespondingadjustmenttotheircarryingamountthroughalossallowanceaccount,exceptfordebtinvestmentsthataremeasuredatFVOCI,forwhichthelossallowanceisrecognisedinothercomprehensiveincome.Write-offThegrosscarryingamountofafinancialassetiswrittenoff(eitherpartiallyorinfull)totheextentthatthereisnorealisticprospectofrecovery.Awrite-offconstitutesaderecognitionevent.ThisisgenerallythecasewhentheGroupdeterminesthatthedebtordoesnothaveassetsorsourcesofincomethatcouldgeneratesufficientcashflowstorepaytheamountssubjecttothewrite-off.However,financialassetsthatarewrittenoffcouldstillbesubjecttoenforcementactivitiesinordertocomplywiththeGroup’sproceduresforrecoveryofamountsdue.Subsequentrecoveriesofanassetthatwaspreviouslywrittenoffarerecognisedasareversalofimpairmentinprofitorlossintheperiodinwhichtherecoveryoccurs.
(7)Equityinstrument
Theconsiderationreceivedfromtheissuanceofequityinstrumentsnetoftransactioncostsisrecognisedinshareholders’equity.ConsiderationandtransactioncostspaidbytheCompanyforrepurchasingself-issuedequityinstrumentsaredeductedfromshareholders’equity.WhentheCompanyrepurchasesitsownshares,thosesharesaretreatedastreasuryshares.Allexpenditurerelatingtotherepurchaseisrecordedinthecostofthetreasuryshares,withthetransactionrecordingintheshareregister.Treasurysharesareexcludedfromprofitdistributionsandarepresentedasadeductionundershareholders’equityinthebalancesheet.11Inventories
(1)Categories
Inventoriesincluderawmaterials,workinprogressandfinishedgoods.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpenditureincurredinbringingtheinventoriestotheirpresentlocationandcondition.Inadditiontothepurchasecostofrawmaterials,workinprogressandfinishedgoodsincludedirectlabourcostsandanappropriateallocationofproductionoverheads.AgriculturalproductsharvestedarereportedinaccordancewiththeCASNo.1-Inventories.
(2)Measurementmethodofcostofinventories
Costofinventoriesiscalculatedusingtheweightedaveragemethod.
(3)Inventorycountsystem
TheGroupmaintainsaperpetualinventorysystem.
(4)Amortisationmethodforlow-valueconsumablesandpackagingmaterials
Consumablesincludinglow-valueconsumablesandpackagingmaterialsarechargedtoprofitorlossuponreceipt.Theamortisationchargeisincludedinthecostoftherelatedassetsorrecognisedinprofitorlossforthecurrentperiod.
(5)Criteriaandmethodforprovisionforobsoleteinventories
Atthebalancesheetdate,inventoriesarecarriedatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Thenetrealisablevalueofmaterialsheldforuseinproductionismeasuredbasedonthenetrealisablevalueofthefinishedgoodsinwhichtheywillbeincorporated.Thenetrealisablevalueofinventoryheldtosatisfysalesorservicecontractsismeasuredbasedonthecontractprice.IfthequantitiesofinventoriesheldbytheGroupexceedthequantitiesspecifiedinsalescontracts,thenetrealisablevalueoftheexcessportionofinventoriesisbasedongeneralsellingprices.Anyexcessofthecostoverthenetrealisablevalueofeachitemofinventoriesisrecognisedasaprovisionforobsoleteinventories,andisrecognisedinprofitorloss.12Long-termequityinvestments
(1)Investmentcostoflong-termequityinvestments
(a)Long-termequityinvestmentsacquiredthroughabusinesscombination
-Theinitialcostofalong-termequityinvestmentacquiredthroughabusinesscombinationinvolvingentitiesundercommoncontrolistheCompany’sshareofthecarryingamountofthesubsidiary’sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountoftheconsiderationgivenisadjustedtothesharepremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.Foralong-termequityinvestmentinasubsidiaryacquiredthroughabusinesscombinationachievedinstageswhichdonotformabundledtransactionandinvolvingentitiesundercommoncontrol,theCompanydeterminestheinitialcostoftheinvestmentinaccordancewiththeabovepolicies.Thedifferencebetweenthisinitialcostandthesumofthecarryingamountofpreviously-heldinvestmentandtheconsiderationpaidforthesharesnewlyacquiredisadjustedtocapitalpremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.-Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinitialcostcomprisestheaggregateofthefairvalueofassetstransferred,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheCompany,inexchangeforcontroloftheacquiree.Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingentitiesundercommoncontrolandachievedthroughmultipletransactionsinstageswhichdonotformabundledtransaction,theinitialcostcomprisesthecarryingamountofthepreviously-heldequityinvestmentintheacquireeimmediatelybeforetheacquisitiondate,andtheadditionalinvestmentcostattheacquisitiondate.(b)Long-termequityinvestmentsacquiredotherthanthroughabusinesscombination
-Along-termequityinvestmentacquiredotherthanthroughabusinesscombinationis
initiallyrecognisedattheamountofcashpaidiftheGroupacquirestheinvestmentbycash,oratthefairvalueoftheequitysecuritiesissuedifaninvestmentisacquiredbyissuingequitysecurities.
(2)Subsequentmeasurementoflong-termequityinvestment
(a)Investmentsinsubsidiaries
IntheCompany’sseparatefinancialstatements,long-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodunlesstheinvestmentisclassifiedasheldforsale(SeeNoteIII.31).Exceptforcashdividendsorprofitdistributionsdeclaredbutnotyetdistributedthathavebeenincludedinthepriceorconsiderationpaidinobtainingtheinvestments,theCompanyrecognisesitsshareofthecashdividendsorprofitdistributionsdeclaredbytheinvesteeasinvestmentincomeforthecurrentperiod.Theinvestmentsinsubsidiariesarestatedinthebalancesheetatcostlessaccumulatedimpairmentlosses.
Fortheimpairmentoftheinvestmentsinsubsidiaries,refertoNoteIII.21.IntheGroup’sconsolidatedfinancialstatements,subsidiariesareaccountedforinaccordancewiththepoliciesdescribedinNoteIII.7.(b)Investmentinjointventuresandassociates
AjointventureisanarrangementwherebytheGroupandotherpartieshavejointcontrol(seeNoteIII.12(3))andrightstothenetassetsofthearrangement.AssociatedenterprisesrefertoenterprisestowhichtheGroupcanexercisesignificantinfluence(seeNoteIII.12(3)).Along-termequityinvestmentinajointventureoranassociateisaccountedforusingtheequitymethodforsubsequentmeasurement,unlesstheinvestmentisclassifiedasheldforsale(seeNoteIII.31).TheaccountingtreatmentsundertheequitymethodadoptedbytheGroupareasfollows:
-Wheretheinitialcostofalong-termequityinvestmentexceedstheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedatcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedattheinvestor’sshareofthefairvalueoftheinvestee’sidentifiablenetassets,andthedifferenceisrecognisedinprofitorloss.-Aftertheacquisitionoftheinvestment,theGrouprecognisesitsshareoftheinvestee’sprofitorlossandothercomprehensiveincomeasinvestmentincomeorlossesandothercomprehensiveincomerespectively,andadjuststhecarryingamountoftheinvestmentaccordingly.Oncetheinvesteedeclaresanycashdividendsorprofitdistributions,thecarryingamountoftheinvestmentisreducedby
theamountattributabletotheGroup.ChangesintheGroup’sshareoftheinvestee’sowners’equity,otherthanthosearisingfromtheinvestee’snetprofitorloss,othercomprehensiveincomeorprofitdistribution(referredtoas“otherchangesinowners’equity”),isrecogniseddirectlyintheGroup’sequity,andthecarryingamountoftheinvestmentisadjustedaccordingly.-Incalculatingitsshareoftheinvestee’snetprofitsorlosses,othercomprehensive
incomeandotherchangesinowners’equity,theGrouprecognisesinvestmentincomeandothercomprehensiveincomeaftermakingappropriateadjustmentstoaligntheaccountingpoliciesoraccountingperiodswiththoseoftheGroupbasedonthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition.UnrealisedprofitsandlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedtotheextentoftheGroup’sinterestintheassociatesorjointventures.UnrealisedlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedinthesamewayasunrealisedgainsbutonlytotheextentthatthereisnoimpairment.-TheGroupdiscontinuesrecognisingitsshareoffurtherlossesoftheinvesteeafter
thecarryingamountofthelong-termequityinvestmentandanylong-terminterestthatinsubstanceformspartoftheGroup’snetinvestmentintheassociateisreducedtozero,excepttotheextentthattheGrouphasanobligationtoassumeadditionallosses.Ifthejointventureortheassociatesubsequentlyreportsnetprofits,theGroupresumesrecognisingitsshareofthoseprofitsonlyafteritsshareoftheprofitsequalstheshareoflossesnotrecognised.Fortheimpairmentoftheinvestmentsinjointventuresandassociates,refertoNoteIII.21.
(3)Criteriafordeterminingtheexistenceofjointcontroloveraninvestee
Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivities(activitieswithsignificantimpactonthereturnsofthearrangement)requiretheunanimousconsentofthepartiessharingcontrol.ThefollowingfactorsareusuallyconsideredwhenassessingwhethertheGroupcanexercisejointcontroloveraninvestee:
-Whethernosingleparticipantpartyisinapositiontocontroltheinvestee’srelatedactivitiesunilaterally;-Whetherstrategicdecisionsrelatingtotheinvestee’srelatedactivitiesrequirethe
unanimousconsentofallparticipantpartiesthatsharingofcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofaninvesteebutdoesnothavecontrolorjointcontroloverthosepolicies.13Investmentproperties
Investmentpropertiesarepropertiesheldeithertoearnrentalincomeorforcapitalappreciationorforboth.Investmentpropertiesareaccountedforusingthecostmodelandstatedinthebalancesheetatcostlessaccumulateddepreciation,amortisationandimpairmentlosses,andadoptsadepreciationoramortisationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights,unlesstheinvestment
propertyisclassifiedasheldforsale(seeNoteIII.31).Fortheimpairmentoftheinvestmentproperties,refertoNoteIII.21.
Category
| Category | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
14Fixedassets
(1)Recognitionoffixedassets
FixedassetsrepresentthetangibleassetsheldbytheGroupforuseinproductionofgoods,supplyofservices,forrentalorforadministrativepurposeswithusefullivesoveroneaccountingyear.Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relatedtaxes,andanydirectlyattributableexpenditureforbringingtheassettoworkingconditionforitsintendeduse.Thecostofself-constructedassetsismeasuredinaccordancewiththepolicysetoutinNoteIII.15.WherethepartsofanitemoffixedassetshavedifferentusefullivesorprovidebenefitstotheGroupinadifferentpattern,thusnecessitatinguseofdifferentdepreciationratesormethods,eachpartisrecognisedasaseparatefixedasset.AnysubsequentcostsincludingthecostofreplacingpartofanitemoffixedassetsarerecognisedasassetswhenitisprobablethattheeconomicbenefitsassociatedwiththecostswillflowtotheGroup,andthecarryingamountofthereplacedpartisderecognised.Thecostsoftheday-to-daymaintenanceoffixedassetsarerecognisedinprofitorlossasincurred.Fixedassetsarestatedinthebalancesheetatcostlessaccumulateddepreciationandimpairmentlosses.
(2)Depreciationoffixedassets
Thecostofafixedasset,lessitsestimatedresidualvalueandaccumulatedimpairmentlosses,isdepreciatedusingthestraight-linemethodoveritsestimatedusefullife,unlessthefixedassetisclassifiedasheldforsale(seeNoteIII.31).Theestimatedusefullives,residualvalueratesanddepreciationratesofeachclassoffixedassetsareasfollows:
| Class | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
| Machineryequipment | 5-30years | 0-5% | 3.2%-20.0% |
| Motorvehicles | 4-12years | 0-5% | 7.9%-25.0% |
Usefullives,estimatedresidualvaluesanddepreciationmethodsarereviewedatleastateachyear-end.
(3)Fortheimpairmentofthefixedassets,refertoNoteIII.21.
(4)Disposaloffixedassets
Thecarryingamountofafixedassetisderecognised:
-whenthefixedassetisholdingfordisposal;or-whennofutureeconomicbenefitisexpectedtobegeneratedfromitsuseordisposal.Gainsorlossesarisingfromtheretirementordisposalofanitemoffixedassetaredeterminedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheitem,andarerecognisedinprofitorlossonthedateofretirementordisposal.15Constructioninprogress
Thecostofself-constructedassetsincludesthecostofmaterials,directlabour,capitalisedborrowingcosts(seeNoteIII.16),andanyothercostsdirectlyattributabletobringingtheassettoworkingconditionforitsintendeduse.Aself-constructedassetisclassifiedasconstructioninprogressandtransferredtofixedassetwhenitisreadyforitsintendeduse.Nodepreciationisprovidedagainstconstructioninprogress.Criteriaandtimingforthetransfertofixedassets：
Category
| Category | Criteriaandtimingforthetransfertofixedassets |
| Plantandbuildings | (1)Themainconstructionprojectsandancillaryprojectshavebeensubstantiallycompleted;(2)theconstructionprojectshavebeencheckedandacceptedbythesurvey,design,constructionandsupervisionunitsaftermeetingthepre-determineddesignrequirements;(3)theconstructionprojectshavebeencheckedandacceptedbyexternaldepartmentssuchasthefiredepartment,thelandandresourcesdepartmentandtheplanningdepartment;(4)ifaconstructionprojectisavailableforitsintendedusebutitsfinalaccounthasnotyetbeenfinalised,theconstructionprojectwillbetransferredtofixedassetsatitsestimatedvaluefromthedateitisavailableforitsintendeduse,basedontheitsestimatedvalueofconstruction. |
| Machineryandequipment | (1)Therelevantequipmentandothersupportingfacilitieshavebeeninstalled;(2)theequipmentcanoperatenormallyandstablyforaperiodaftercommissioning;(3)theproductionequipmentiscapableofproducingqualifiedproductsstablyforaperiod;(4)theequipmenthasbeencheckedandacceptedbyassetmanagementpersonnelandusers. |
Constructioninprogressisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.21).Whenanenterprisesellsproductsorby-productsproducedbeforeafixedassetisavailableforitsintendeduse,theproceedsandrelatedcostareaccountedforinaccordancewithCAS14–RevenueandCAS1–Inventoriesrespectively,andrecognisedinprofitorlossforthecurrentperiod.
16Borrowingcosts
Borrowingcostsincurreddirectlyattributabletotheacquisition,andconstructionorproductionofaqualifyingassetarecapitalisedaspartofthecostoftheasset.Otherborrowingcostsarerecognisedasfinancialexpenseswhenincurred.Duringthecapitalisationperiod,theamountofinterest(includingamortisationofanydiscountorpremiumonborrowing)tobecapitalisedineachaccountingperiodisdeterminedasfollows:
-Wherefundsareborrowedspecificallyfortheacquisitionandconstructionorproductionofaqualifyingasset,theamountofinteresttobecapitalisedistheinterestexpensecalculatedusingeffectiveinterestratesduringtheperiodlessanyinterestincomeearnedfromdepositingtheborrowedfundsoranyinvestmentincomeonthetemporaryinvestmentofthosefundsbeforebeingusedontheasset.-TotheextentthattheGroupborrowsfundsgenerallyandusesthemfortheacquisitionand
constructionorproductionofaqualifyingasset,theamountofborrowingcostseligibleforcapitalisationisdeterminedbyapplyingacapitalisationratetotheweightedaverageoftheexcessamountsofcumulativeexpenditureontheassetovertheaboveamountsofspecificborrowings.Thecapitalisationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Theeffectiveinterestrateisdeterminedastheratethatexactlydiscountsestimatedfuturecashflowthroughtheexpectedlifeoftheborrowingor,whenappropriate,ashorterperiodtotheinitiallyrecognisedamountoftheborrowings.Duringthecapitalisationperiod,exchangedifferencesrelatedtotheprincipalandinterestonaspecific-purposeborrowingdenominatedinforeigncurrencyarecapitalisedaspartofthecostofthequalifyingasset.Theexchangedifferencesrelatedtotheprincipalandinterestonforeigncurrencyborrowingsotherthanaspecific-purposeborrowingarerecognisedasafinancialexpensewhenincurred.Thecapitalisationperiodistheperiodfromthedateofcommencementofcapitalisationofborrowingcoststothedateofcessationofcapitalisation,excludinganyperiodoverwhichcapitalisationissuspended.Capitalisationofborrowingcostscommenceswhenexpenditurefortheassetisbeingincurred,borrowingcostsarebeingincurredandactivitiesofacquisition,constructionorproductionthatarenecessarytopreparetheassetforitsintendeduseareinprogress,andceaseswhentheassetsbecomereadyfortheirintendeduse.Capitalisationofborrowingcostsshouldceasewhenthequalifyingassetbeingconstructedorproducedhasreacheditsexpectedusableorsaleablecondition.Capitalisationofborrowingcostsissuspendedwhentheacquisition,constructionorproductionactivitiesareinterruptedabnormallyforaperiodofmorethanthreemonths.17Biologicalassets
TheGroup’sbiologicalassetsarebearerbiologicalassets.Bearerbiologicalassetsarethosethatareheldforthepurposesofproducingagriculturalproduce,renderingofservicesorrental.BearerbiologicalassetsintheGrouparevines.Bearerbiologicalassetsareinitiallymeasuredatcost.Thecostofself-grownorself-bredbearerbiologicalassetsrepresentsthenecessarydirectlyattributableexpenditureincurred
beforesatisfyingtheexpectedproductionandoperatingpurpose,includingcapitalisedborrowingcosts.Bearerbiologicalassets,afterreachingtheexpectedproductionandoperatingpurpose,aredepreciatedusingthestraight-linemethodoveritsestimatedusefullife.Theestimatedusefullives,estimatednetresidualvalueratesanddepreciationratesofbearerbiologicalassetsareasfollows:
Category
| Category | Estimatedusefullife(years) | Estimatednetresidualvaluerate | Depreciationrate(%) |
| Vines | 20years | 0% | 5.0% |
TheGroupevaluatestheusefullifeandexpectednetsalvagevaluebyconsideringthenormalproducinglifeofthebearerbiologicalassets.Usefullives,estimatedresidualvaluesanddepreciationmethodsofbearerbiologicalassetsarereviewedatleastateachyear-end.Anychangesshouldbetreatedaschangesinaccountingestimates.Forabearerbiologicalassetthathasbeensold,damaged,deadordestroyed,anydifferencebetweenthedisposalproceedsandthecarryingamountoftheassetshouldberecognisedinprofitorlossfortheperiodinwhichitarises.18Intangibleassets
UsefullifeandamortisationmethodsIntangibleassetsarestatedinthebalancesheetatcostlessaccumulatedamortization(wheretheestimatedusefullifeisfinite)andimpairmentlosses(seeNoteIII.21).Foranintangibleassetwithfiniteusefullife,itscostestimatedlessresidualvalueandaccumulatedimpairmentlossesisamortisedonthestraight-linemethodoveritsestimatedusefullife,unlesstheintangibleassetisclassifiedasheldforsale.Theestimatedusefullives,basisfordeterminationandamortisationmethodsofintangibleassetsareasfollows:
| Item | Amortisationperiod(years) | Basisfordetermination | Amortisationmethods |
| Landuserights | 40-50years | Termsoflanduserights | Stright-lineMethod |
| Softwarelicenses | 5-10years | Shorterofthetermofsoftwareortheestimatedusefullifeofsoftware | Stright-lineMethod |
| Trademarks | 10years | Shorterofthetermoftrademarkrightsortheestimatedusefullifeoftrademarkrights | Stright-lineMethod |
Usefullivesandamortisationmethodsofintangibleassetwithfiniteusefullifearereviewedatleastateachyear-end.
AnintangibleassetisregardedashavinganindefiniteusefullifeandisnotamortisedwhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Atthebalancesheetdate,theGrouphadintangibleassetswithinfiniteusefullivesincludingthelanduserightsandtrademarks.LanduserightswithinfiniteusefullivesarepermanentlanduserightswithpermanentownershipheldbytheGroupundertherelevantChileandAustralianlawsarisingfromtheGroup’sacquisitionofVi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSPA.(collectivelyreferredtoasthe“ChileIndomitaWineGroup”),andtheacquisitionofKilikanoonEstatePtyLtd.(the“AustraliaKilikanoonEstate”),thereforetherewasnoamortisation.TherighttousetrademarkreferstothetrademarkheldbytheGrouparisingfromtheacquisitionoftheChileIndomitaWineGroupandtheAustraliaKilikanoonEstatewithinfiniteusefullives.Thevaluationoftrademarkwasbasedonthetrendsinthemarketandcompetitiveenvironment,productcycle,andmanaginglong-termdevelopmentstrategy.ThosebasisindicatedthetrademarkwillprovidenetcashflowstotheGroupwithinanuncertainperiod.TheusefullifeisindefiniteasitwashardtopredicttheperiodthatthetrademarkwouldbringeconomicbenefitstotheGroup.19Goodwill
Theinitialcostofgoodwillrepresentstheexcessofcostofacquisitionovertheacquirer’sinterestinthefairvalueoftheidentifiablenetassetsoftheacquireeunderabusinesscombinationnotinvolvingentitiesundercommoncontrol.Goodwillisnotamortisedandisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.21).Ondisposalofanassetgrouporasetofassetgroups,anyattributablegoodwilliswrittenoffandincludedinthecalculationoftheprofitorlossondisposal.20Long-termdeferredexpenses
Long-termdeferredexpensesareamortisedusingastraight-linemethodwithinthebenefitperiod.Therespectiveamortisationperiodsforsuchexpensesareasfollows:
Item
| Item | Amortisationperiod |
| Landrequisitionfee | 50years |
| Greeningfee | 5-20years |
| RenovationFee | 3-20years |
| Others | 3years |
21Impairmentofassetsotherthaninventoriesandfinancialassets
Thecarryingamountsofthefollowingassetsarereviewedateachbalancesheetdatebasedoninternalandexternalsourcesofinformationtodeterminewhetherthereisanyindicationofimpairment:
-fixedassets-constructioninprogress-right-of-useassets-intangibleassets-bearerbiologicalassets-investmentpropertiesmeasuredusingacostmodel-long-termequityinvestments-goodwill-long-termdeferredexpenses,etc.Ifanyindicationexists,therecoverableamountoftheassetisestimated.Inaddition,theGroupestimatestherecoverableamountsofgoodwillandintangibleassetswithinfiniteusefullivesateachyear-end,irrespectiveofwhetherthereisanyindicationofimpairment.Goodwillisallocatedtoeachassetgroup,orsetofassetgroups,thatisexpectedtobenefitfromthesynergiesofthecombinationforthepurposeofimpairmenttesting.Therecoverableamountofanasset(orassetgroup,setofassetgroups)isthehigherofitsfairvalue(seeNoteIII.22)lesscoststosellanditspresentvalueofexpectedfuturecashflows.Anassetgroupiscomposedofassetsdirectlyrelatedtocash-generationandisthesmallestidentifiablegroupofassetsthatgeneratescashinflowsthatarelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Thepresentvalueofexpectedfuturecashflowsofanassetisdeterminedbydiscountingthefuturecashflows,estimatedtobederivedfromcontinuinguseoftheassetandfromitsultimatedisposal,totheirpresentvalueusinganappropriatepre-taxdiscountrate.Animpairmentlossisrecognisedinprofitorlosswhentherecoverableamountofanassetislessthanitscarryingamount.Aprovisionforimpairmentoftheassetisrecognisedaccordingly.Impairmentlossesrelatedtoanassetgrouporasetofassetgroupsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheassetgrouporsetofassetgroups,andthentoreducethecarryingamountoftheotherassetsintheassetgrouporsetofassetgroupsonaproratabasis.However,suchallocationwouldnotreducethecarryingamountofanassetbelowthehighestofitsfairvaluelesscoststosell(ifmeasurable),itspresentvalueofexpectedfuturecashflows(ifdeterminable)andzero.Onceanimpairmentlossisrecognised,itisnotreversedinasubsequentperiod.
22Fairvaluemeasurement
Unlessotherwisespecified,theGroupmeasuresfairvalueasfollows:
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Whenmeasuringfairvalue,theGrouptakesintoaccountthecharacteristicsoftheparticularassetorliability(includingtheconditionandlocationoftheassetandrestrictions,ifany,onthesaleoruseoftheasset)thatmarketparticipantswouldconsiderwhenpricingtheassetorliabilityatthemeasurementdate,andusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataandotherinformationareavailabletomeasurefairvalue.Valuationtechniquesmainlyincludethemarketapproach,theincomeapproachandthecostapproach.23Provisions
AprovisionisrecognisedforanobligationrelatedtoacontingencyiftheGrouphasapresentobligationthatcanbeestimatedreliably,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation.Aprovisionisinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation.Wheretheeffectofthetimevalueofmoneyismaterial,provisionsaredeterminedbydiscountingtheexpectedfuturecashflows.Factorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyaretakenintoaccountasawholeinreachingthebestestimate.Wherethereisacontinuousrangeofpossibleoutcomesfortheexpenditurerequired,andeachpossibleoutcomeinthatrangeisaslikelyasanyother,thebestestimateisthemid-pointofthatrange.Inothercases,thebestestimateisdeterminedasfollows:
-Wherethecontingencyinvolvesasingleitem,thebestestimateisthemostlikelyoutcome.-Wherethecontingencyinvolvesalargepopulationofitems,thebestestimateisdeterminedbyweightingallpossibleoutcomesbytheirassociatedprobabilities.TheGroupreviewsthecarryingamountsofprovisionsatthebalancesheetdateandadjuststheircarryingamountstothecurrentbestestimates.24Share-basedpayments
(1)Classificationofshare-basedpayments
Share-basedpaymenttransactionsintheGroupareequity-settledshare-basedpayments..
(2)Accountingtreatmentofshare-basedpayments
-Equity-settledshare-basedpayments
WheretheGroupusessharesorotherequityinstrumentsasconsiderationforservicesreceivedfromemployees,thepaymentismeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployeesatthegrantdate.Iftheequityinstrumentsgrantedtoemployeesvestimmediately,thefairvalueoftheequityinstrumentsgrantedisfullyrecognisedascostsorexpensesonthegrantdate,withacorrespondingincreaseincapitalreserve.Iftheequityinstrumentsgranteddonotvestuntilthecompletionofservicesforaperiod,oruntiltheachievementofaspecifiedperformancecondition,theGrouprecognisesanamountateachbalancesheetdateduringthevestingperiodbasedonthebestestimateofthenumberofequityinstrumentsexpectedtovestaccordingtonewlyobtainedsubsequentinformationregardingchangesinthenumberofemployeesexpectedtovesttheequityinstruments.TheGroupmeasurestheservicesreceivedatthegrant-datefairvalueoftheequityinstrumentsandrecognisesthecostsorexpensesastheservicesarereceived,withacorrespondingincreaseincapitalreserve.WhentheGroupreceivesservicesbuthasnoobligationtosettlethetransactionbecausetherelevantequityinstrumentsareissuedbytheCompany’sultimateparentoritssubsidiariesoutsidetheGroup,theGroupalsoclassifiesthetransactionasequity-settled.25Revenuerecognition
RevenueisthegrossinflowofeconomicbenefitsarisinginthecourseoftheGroup’sordinaryactivitieswhentheinflowsresultinincreaseinshareholders’equity,otherthanincreaserelatingtocontributionsfromshareholders.RevenueisrecognisedwhentheGroupsatisfiestheperformanceobligationinthecontractbytransferringthecontroloverrelevantgoodsorservicestothecustomers.Whereacontracthastwoormoreperformanceobligations,theGroupdeterminesthestand-alonesellingpriceatcontractinceptionofthedistinctgoodorserviceunderlyingeachperformanceobligationinthecontractandallocatesthetransactionpriceinproportiontothosestand-alonesellingprices.TheGrouprecognisesasrevenuetheamountofthetransactionpricethatisallocatedtoeachperformanceobligation.Thestand-alonesellingpriceisthepriceatwhichtheGroupwouldsellapromisedgoodorserviceseparatelytoacustomer.Ifastand-alonesellingpriceisnotdirectlyobservable,theGroupconsidersallinformationthatisreasonablyavailabletotheentity,maximisestheuseofobservableinputstoestimatethestand-alonesellingprice.Forthecontractwithawarranty,theGroupanalysesthenatureofthewarrantyprovided,ifthewarrantyprovidesthecustomerwithadistinctserviceinadditiontotheassurancethattheproductcomplieswithagreed-uponspecifications,theGrouprecognisesforthepromisedwarrantyasaperformanceobligation.Otherwise,theGroupaccountsforthewarrantyinaccordancewiththerequirementsofCASNo.13–Contingencies.
ThetransactionpriceistheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdparties.TheGrouprecognisesthetransactionpriceonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.Wherethecontractcontainsasignificantfinancingcomponent,theGrouprecognisesthetransactionpriceatanamountthatreflectsthepricethatacustomerwouldhavepaidforthepromisedgoodsorservicesifthecustomerhadpaidcashforthosegoodsorserviceswhen(oras)theytransfertothecustomer.Thedifferencebetweentheamountofpromisedconsiderationandthecashsellingpriceisamortisedusinganeffectiveinterestmethodoverthecontractterm.TheGroupdoesnotadjusttheconsiderationforanyeffectsofasignificantfinancingcomponentifitexpects,atcontractinception,thattheperiodbetweenwhentheGrouptransfersapromisedgoodorservicetoacustomerandwhenthecustomerpaysforthatgoodorservicewillbeoneyearorless.TheGroupsatisfiesaperformanceobligationovertimeifoneofthefollowingcriteriaismet;orotherwise,aperformanceobligationissatisfiedatapointintime:
-thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheGroup’s
performanceastheGroupperforms;-thecustomercancontroltheassetcreatedorenhancedduringtheGroup’sperformance;or-theGroup’sperformancedoesnotcreateanassetwithanalternativeusetoitandthe
Grouphasanenforceablerighttopaymentforperformancecompletedtodate.Forperformanceobligationsatisfiedovertime,theGrouprecognisesrevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation.Whentheoutcomeofthatperformanceobligationcannotbemeasuredreasonably,buttheGroupexpectstorecoverthecostsincurredinsatisfyingtheperformanceobligation,theGrouprecognisesrevenueonlytotheextentofthecostsincurreduntilsuchtimethatitcanreasonablymeasuretheoutcomeoftheperformanceobligation.Forperformanceobligationsatisfiedatapointintime,theGrouprecognisesrevenueatthepointintimeatwhichthecustomerobtainscontrolofrelevantgoodsorservices.Todeterminewhetheracustomerhasobtainedcontrolofgoodsorservices,theGroupconsidersthefollowingindicators:
-theGrouphasapresentrighttopaymentforthegoodsorservices;-theGrouphastransferredphysicalpossessionofthegoodstothecustomer;-theGrouphastransferredthelegaltitleofthegoodsorthesignificantrisksandrewardsof
ownershipofthegoodstothecustomer;and-thecustomerhasacceptedthegoodsorservices.Forthesaleofaproductwitharightofreturn,theGrouprecognisesrevenuewhentheGroupobtainscontrolofthatproduct,intheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortheproducttransferred(i.e.excludingtheamountofwhichexpectedtobereturned),andrecognisesarefundliabilityfortheproductsexpectedtobereturned.Meanwhile,anassetisrecognisedintheamountofcarryingamountoftheproductexpectedtobereturnedlessanyexpectedcoststorecoverthoseproducts(includingpotentialdecreasesinthevalueofreturnedproducts),andcarryforwardtocostintheamountofcarryingamountofthetransferredproductslesstheabovecosts.Attheendofeachreportingperiod,theGroupupdatesitsassessmentoffuturesalesreturn.Ifthereisanychange,itisaccountedforasachangeinaccountingestimate.
AcontractassetistheGroup’srighttoconsiderationinexchangeforgoodsorservicesthatithastransferredtoacustomerwhenthatrightisconditionalonsomethingotherthanthepassageoftime.TheGrouprecogniseslossallowancesforexpectedcreditlossoncontractassets(seeNoteIII.10(6)).AccountsreceivableistheGroup’srighttoconsiderationthatisunconditional(onlythepassageoftimeisrequired).AcontractliabilityistheGroup’sobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer.ThefollowingisthedescriptionofaccountingpoliciesregardingrevenuefromtheGroup’sprincipalactivities:
TheGroup’ssalesrevenueismainlyderivedfromdealersales.RevenueisrecognisedwhentheGrouptransferscontroloftherelatedproductstothecustomer.Basedonthebusinesscontract,theGrouprecognisedthesalesrevenueofthesetransferswhentheproductisconfirmedandsignedforacceptancebythecustomers.26Contractcosts
Contractcostsareeithertheincrementalcostsofobtainingacontractwithacustomerorthecoststofulfilacontractwithacustomer.IncrementalcostsofobtainingacontractarethosecoststhattheGroupincurstoobtainacontractwithacustomerthatitwouldnothaveincurredifthecontracthadnotbeenobtainede.g.anincrementalsalescommission.TheGrouprecognisesasanassettheincrementalcostsofobtainingacontractwithacustomerifitexpectstorecoverthosecosts.Othercostsofobtainingacontractareexpensedwhenincurred.Ifthecoststofulfilacontractwithacustomerarenotwithinthescopeofinventoriesorotheraccountingstandards,theGrouprecognisesanassetfromthecostsincurredtofulfilacontractonlyifthosecostsmeetallofthefollowingcriteria:
-thecostsrelatedirectlytoanexistingcontractortoaspecificallyidentifiableanticipated
contract,includingdirectlabour,directmaterials,allocationsofoverheads(orsimilarcosts),coststhatareexplicitlychargeabletothecustomerandothercoststhatareincurredonlybecausetheGroupenteredintothecontract-thecostsgenerateorenhanceresourcesoftheGroupthatwillbeusedinsatisfying(orin
continuingtosatisfy)performanceobligationsinthefuture;and-thecostsareexpectedtoberecovered.Assetsrecognisedfortheincrementalcostsofobtainingacontractandassetsrecognisedforthecoststofulfilacontract(the“assetsrelatedtocontractcosts”)areamortisedonasystematicbasisthatisconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetsrelateandrecognisedinprofitorlossforthecurrentperiod.TheGrouprecognisestheincrementalcostsofobtainingacontractasanexpensewhenincurrediftheamortisationperiodoftheassetthattheentityotherwisewouldhaverecognisedisoneyearorless.TheGrouprecognisesanimpairmentlossinprofitorlosstotheextentthatthecarryingamountofanassetrelatedtocontractcostsexceeds:
-remainingamountofconsiderationthattheGroupexpectstoreceiveinexchangeforthe
goodsorservicestowhichtheassetrelates;less
-thecoststhatrelatedirectlytoprovidingthosegoodsorservicesthathavenotyetbeen
recognisedasexpenses.27Employeebenefits
(1)Short-termemployeebenefits
Employeewagesorsalaries,bonuses,socialsecuritycontributionssuchasmedicalinsurance,workinjuryinsurance,maternityinsuranceandhousingfund,measuredattheamountincurredoraccuredattheapplicablebenchmarksandrates,arerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
(2)Post-employmentbenefits–definedcontributionplans
PursuanttotherelevantlawsandregulationsofthePeople’sRepublicofChina,theGroupparticipatedinadefinedcontributionbasicpensioninsuranceplaninthesocialinsurancesystemestablishedandmanagedbygovernmentorganisations.TheGroupmakescontributionstobasicpensioninsuranceplansbasedontheapplicablebenchmarksandratesstipulatedbythegovernment.Basicpensioninsurancecontributionspayablearerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
(3)Terminationbenefits
WhentheGroupterminatestheemploymentwithemployeesbeforetheemploymentcontractsexpire,orprovidescompensationunderanoffertoencourageemployeestoacceptvoluntaryredundancy,aprovisionisrecognisedwithacorrespondingexpenseinprofitorlossattheearlierofthefollowingdates:
-WhentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseof
anemployeeterminationplanoracurtailmentproposal;-WhentheGrouphasaformaldetailedrestructuringplaninvolvingthepaymentof
terminationbenefitsandhasraisedavalidexpectationinthoseaffectedthatitwillcarryout
therestructuringbystartingtoimplementthatplanorannouncingitsmainfeaturestothose
affectedbyit.28Governmentgrants
Governmentgrantsarenon-reciprocaltransfersofmonetaryornon-monetaryassetsfromthegovernmenttotheGroupexceptforcapitalcontributionsfromthegovernmentinthecapacityasaninvestorintheGroup.AgovernmentgrantisrecognisedwhenthereisreasonableassurancethatthegrantwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtothegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasuredatfairvalue.GovernmentgrantsrelatedtoassetsaregrantswhoseprimaryconditionisthattheGroupqualifyingforthemshouldpurchase,constructorotherwiseacquirelong-termassets.Governmentgrantsrelatedtoincomearegrantsotherthanthoserelatedtoassets.Agovernmentgrantrelatedtoanassetisrecognisedasdeferredincomeandamortisedover
theusefullifeoftherelatedassetonareasonableandsystematicmannerasotherincomeornon-operatingincome.AgrantthatcompensatestheGroupforexpensesorlossestobeincurredinthefutureisrecognisedasdeferredincome,andincludedinotherincomeornon-operatingincomeintheperiodsinwhichtheexpensesorlossesarerecognised.Orincludedinotherincomeornon-operatingincomedirectly.29Incometax
Currenttaxanddeferredtaxarerecognisedinprofitorlossexcepttotheextentthattheyrelatetoabusinesscombinationoritemsrecogniseddirectlyinequity(includingothercomprehensiveincome).Currenttaxistheexpectedtaxpayablecalculatedattheapplicabletaxrateontaxableincomefortheyear,plusanyadjustmenttotaxpayableinrespectofpreviousyears.Atthebalancesheetdate,currenttaxassetsandliabilitiesareoffsetonlyiftheGrouphasalegallyenforceablerighttosetthemoffandalsointendseithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.Deferredtaxassetsanddeferredtaxliabilitiesarisefromdeductibleandtaxabletemporarydifferencesrespectively,beingthedifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheirtaxbases,whichincludedeductiblelossesandtaxcreditscarriedforwardtosubsequentperiods.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilised.Deferredtaxisnotrecognisedfortemporarydifferencesarisingfromtheinitialrecognitionofassetsorliabilitiesinasingletransactionthatisnotabusinesscombination,affectsneitheraccountingprofitnortaxableprofit(ordeductibleloss)anddoesnotgiverisetoequaltaxableanddeductibletemporarydifferences.Deferredtaxisalsonotrecognisedfortaxabletemporarydifferencesarisingfromtheinitialrecognitionofgoodwill.Atthebalancesheetdate,deferredtaxismeasuredbasedonthetaxconsequencesthatwouldfollowfromtheexpectedmannerofrecoveryorsettlementofthecarryingamountsoftheassetsandliabilities,usingtaxratesenactedatthebalancesheetdatethatareexpectedtobeappliedintheperiodwhentheassetisrecoveredortheliabilityissettled.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate,andisreducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitswillbeutilised.Suchreductionsarereversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitswillbeavailable.Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesareoffsetifallofthefollowingconditionsaremet:
-thetaxableentityhasalegallyenforceablerighttooffsetcurrenttaxliabilitiesandcurrent
taxassets;-theyrelatetoincometaxesleviedbythesametaxauthorityoneither:
-thesametaxableentity;or-differenttaxableentitieswhichintendeithertosettlethecurrenttaxliabilitiesandcurrent
taxassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,in
eachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesordeferredtax
assetsareexpectedtobesettledorrecovered.
30Leases
Acontractisleaseifthelessorconveystherighttocontroltheuseofanidentifiedassettolesseeforaperiodoftimeinexchangeforconsideration.Atinceptionofacontract,theGroupassesseswhetheracontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedasset,theGroupassesseswhether:
-thecontractinvolvestheuseofanidentifiedasset.Anidentifiedassetmaybespecified
explicitlyorimplicitlyspeiciedinacontratandshouldbephysicallydistinct,orcapacityportionorotherportionofanassetthatisnotphysicallydistinctbutitrepresentssubstantiallyallofthecapacityoftheassetandtherebyprovidesthecustomerwiththerighttoobtainsubstantiallyalloftheecomonicbenefitsfromtheuseoftheasset.Ifthesupplierhasasubstantivesubstitutionrightthroughouttheperiodofuse,thentheassetisnotidentified;-thelesseehastherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseoftheassetthroughouttheperiodofuse;-thelesseehastherighttodirecttheuseoftheasset.Foracontractthatcontainsmoreseparateleasecomponets,thelesseeandthelessorseparateleasecomponentsandaccountforeachleasecomponentasaleaseseparately.Foracontractthatcontainsleaseandnon-leasecomponents,thelesseeandthelessorseparateleasecomponentsfromnon-leasecomponents.Foracontractthatcontainsleaseandnon-leasecomponents,thelesseeallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentandtheaggregatestand-alonepriceofthenon-leasecomponents.ThelessorallocatestheconsiderationinthecontractinaccordancewiththeaccountingpolicyinNoteIII.25.
(1)Asalessee
TheGrouprecognisesaright-of-useassetandaleaseliabilityattheleasecommencementdate.Theright-of-useassetisinitiallymeasuredatcost,whichcomprisestheinitialamountoftheleaseliability,anyleasepaymentsmadeatorbeforethecommencementdate(lessanyleaseincentivesreceived),anyinitialdirectcostsincurredandanestimateofcoststodismantleandremovetheunderlyingassetortorestorethesiteonwhichitislocatedorrestoretheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.Theright-of-useassetisdepreciatedusingthestraight-linemethod.Ifthelesseeisreasonablycertaintoexerciseapurchaseoptionbytheendoftheleaseterm,theright-of-useassetisdepreciatedovertheremainingusefullivesoftheunderlyingasset.Otherwise,theright-of-useassetisdepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetortheendoftheleaseterm.Impairmentlossesofright-of-useassetsareaccountedforinaccordancewiththeaccountingpolicydescribedinNoteIII.21.Theleaseliabilityisinitiallymeasuredatthepresentvalueoftheleasepaymentsthatarenotpaidatthecommencementdate,discountedusingtheinterestrateimplicitintheleaseor,ifthatratecannotbereadilydetermined,theGroup’sincrementalborrowingrate.
Aconstantperiodicrateisusedtocalculatetheinterestontheleaseliabilityineachperiodduringtheleasetermwithacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.Variableleasepaymentsnotincludedinthemeasurementoftheleaseliabilityischargedtoprofitorlossorincludedinthecostofassetswhereappropriateasincurred.Underthefollowingcircumstancesafterthecommencementdate,theGroupremeasuresleaseliabilitiesbasedonthepresentvalueofrevisedleasepayments:
-thereisachangeintheamountsexpectedtobepayableunderaresidualvalueguarantee;-thereisachangeinfutureleasepaymentsresultingfromachangeinanindexorarateusedtodeterminethosepayments;-thereisachangeintheassessmentofwhethertheGroupwillexerciseapurchase,
extensionorterminationoption,orthereisachangeintheexerciseoftheextensionorterminationoption.Whentheleaseliabilityisremeasured,acorrespondingadjustmentismadetothecarryingamountoftheright-of-useasset,orisrecordedinprofitorlossifthecarryingamountoftheright-of-useassethasbeenreducedtozero.TheGrouphaselectednottorecogniseright-of-useassetsandleaseliabilitiesforshort-termleasesthathavealeasetermof12monthsorlessandleasesoflow-valueassets.TheGrouprecognisestheleasepaymentsassociatedwiththeseleasesinprofitorlossorasthecostoftheassetswhereappropriateusingthestraight-linemethodovertheleaseterm.
(2)Asalessor
TheGroupdeterminesatleaseinceptionwhethereachleaseisafinanceleaseoranoperatinglease.Aleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingassetirrespectiveofwhetherthelegaltitletotheassetiseventuallytransferred.Anoperatingleaseisaleaseotherthanafinancelease.WhentheGroupisasub-lessor,itassessestheleaseclassificationofasub-leasewithreferencetotheright-of-useassetarisingfromtheheadlease,notwithreferencetotheunderlyingasset.Ifaheadleaseisashort-termleasetowhichtheGroupappliespracticalexpedientdescribedabove,thenitclassifiesthesub-leaseasanoperatinglease.Underafinancelease,atthecommencementdate,theGrouprecognisesthefinanceleasereceivableandderecognisesthefinanceleaseasset.Thefinanceleasereceivableisinitiallymeasuredatanamountequaltothenetinvestmentinthelease.Thenetinvestmentintheleaseismeasuredattheaggregateoftheunguaranteedresidualvalueandthepresentvalueoftheleasereceivablethatarenotreceivedatthecommencementdate,discountedusingtheinterestrateimplicitinthelease.TheGrouprecognisesfinanceincomeovertheleaseterm,basedonapatternreflectingaconstantperiodicrateofreturn.ThederecognitionandimpairmentofthefinanceleasereceivablearerecognisedinaccordancewiththeaccountingpolicyinNoteIII.10.Variableleasepaymentsnotincludedinthemeasurementofnetinvestmentintheleasearerecognisedasincomeastheyareearned.Leasereceiptsfromoperatingleasesisrecognisedasincomeusingthestraight-linemethodovertheleaseterm.Theinitialdirectcostsincurredinrespectoftheoperatingleaseare
initiallycapitalisedandsubsequentlyamortisedinprofitorlossovertheleasetermonthesamebasisastheleaseincome.Variableleasepaymentsnotincludedinleasereceiptsarerecognisedasincomeastheyareearned.31Assetsheldforsale
TheGroupclassifiedanon-currentassetordisposalgroupasheldforsalewhenthecarryingamountofanon-currentassetordisposalgroupwillberecoveredthroughasaletransactionratherthanthroughcontinuinguse.Adisposalgroupreferstoagroupofassetstobedisposedof,bysaleorotherwise,togetherasawholeinasingletransactionandliabilitiesdirectlyassociatedwiththoseassetsthatwillbetransferredinthetransaction.Anon-currentassetordisposalgroupisclassifiedasheldforsalewhenallthefollowingcriteriaaremet:
-Accordingtothecustomarypracticesofsellingsuchassetordisposalgroupinsimilartransactions,thenon-currentassetordisposalgroupmustbeavailableforimmediatesaleintheirpresentconditionsubjecttotermsthatareusualandcustomaryforsalesofsuchassetsordisposalgroups;-Itssaleishighlyprobable,thatis,theGrouphasmadearesolutiononasaleplanandhasobtainedafirmpurchasecommitment.Thesaleistobecompletedwithinoneyear.Non-currentassetsordisposalgroupsheldforsalearestatedatthelowerofcarryingamountandfairvalue(seeNoteIII.22)lesscoststosell(exceptfinancialassets(seeNoteIII.10),deferredtaxassets(seeNoteIII.29)andinvestmentpropertiessubsequentmeasuredatfairvalue(seeNoteIII.13)initiallyandsubsequently.Anyexcessofthecarryingamountoverthefairvalue(seeNoteIII.22)lesscoststosellisrecognisedasanimpairmentlossinprofitorloss.32Profitdistributions
Dividendsorprofitdistributionsproposedintheprofitappropriationplan,whichwillbeapprovedafterthebalancesheetdate,arenotrecognisedasaliabilityatthebalancesheetdatebutaredisclosedinthenotesseparately.33Relatedparties
Ifapartyhasthepowertocontrol,jointlycontrolorexercisesignificantinfluenceoveranotherparty,orviceversa,orwheretwoormorepartiesaresubjecttocommoncontrolorjointcontrolfromanotherparty,theyareconsideredtoberelatedparties.Relatedpartiesmaybeindividualsorenterprises.EnterpriseswithwhichtheCompanyisundercommoncontrolonlyfromtheStateandthathavenootherrelatedpartyrelationshipsarenotregardedasrelatedparties.Inadditiontotherelatedpartiesstatedabove,theCompanydeterminesrelatedpartiesbasedonthedisclosurerequirementsofAdministrativeProceduresontheInformationDisclosuresofListedCompaniesissuedbytheCSRC.
34Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparklingwineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup’sinternalorganisationstructure,managementrequirementsandinternalreportingsystem,theGroup’soperationisdividedintofiveparts:China,Spain,France,ChileandAustralia.Themanagementperiodicallyevaluatessegmentresults,inordertoallocateresourcesandevaluateperformances.In2023,over86%ofrevenue,morethan96%ofprofitandover91%ofnon-currentassetsderivedfromChina/arelocatedinChina.ThereforetheGroupdoesnotneedtodiscloseadditionalsegmentreportinformation.35Significantaccountingestimatesandjudgements
Thepreparationofthefinancialstatementsrequiresmanagementtomakeestimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Themanagementestimatesaswellasunderlyingassumptionsanduncertaintiesinvolvedarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.SignificantaccountingestimatesseeNotesV.3711and16.36Changesinsignificantaccountingpolicies
In2023,theGrouphasadoptedthefollowingnewlyrevisedaccountingstandardsandimplementationguidanceandillustrativeexamplesissuedbytheMOF:
Theaccountingtreatmentofdeferredtaxrelatedtoassetsandliabilitiesarisingfromasingletransactionexcludedfromthescopeoftheinitialrecognitionexemption”inCASBulletinNo.16(Caikuai[2022]No.31)(“CASBulletinNo.16”)Accordingtotheprovisions,fortaxableanddeductibletemporarydifferencesarisingfromtheinitialrecognitionofassetsorliabilitiesinasingletransactionthatisnotabusinesscombination,affectsneitheraccountingprofitsnortaxableprofit(ordeductiblelosses)andgivesrisetoequaltaxableanddeductibletemporarydifferences,theGrouprecognisesthecorrespondingdeferredtaxliabilitiesanddeferredtaxassetsrespectivelyinaccordancewithrelevantprovisionsinCAS18-IncomeTaxwhensuchtransactionsoccur,insteadofrecognisingdeferredtaxliabilitiesordeferredtaxassetsbasedonthenetamountoftaxableanddeductibletemporarydifferences.TheadoptionoftheaboverequirementsandguidancedoesnothaveasignificanteffectonthefinancialpositionandfinancialperformanceoftheGroup.
IV.Taxation1Maintypesoftaxesandcorrespondingtaxrates
Typeoftax
| Typeoftax | Taxationbasis | Taxrate |
| Value-addedtax(VAT) | OutputVATiscalculatedonproductsalesandtaxableservicesrevenue.ThebasisforVATpayableistodeductinputVATfromtheoutputVATfortheperiod | 13%,9%,6%(China),20%(France),21%(Spain),19%(Chile)and10%(Australia) |
| Consumptiontax | Basedontaxablerevenue | 10%oftheprice,20%ofthepriceandRMB1,000eachton(China) |
| Urbanmaintenanceandconstructiontax | BasedonVATpaid | 7%(China) |
| Corporateincometax | Basedontaxableprofits | 25%(China),25%(France),28%(Spain),27%(Chile),30%(Australia) |
OtherthantaxincentivesstatedinNoteIV.2,applicabletaxratesoftheGroupin2023and2022areallstatedasabove.2Taxpreferentialtreatments
NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinNingxiaHuizuAutonomousRegion.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,NingxiaGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuGrapeGrowingCo.,Ltd.(“GrapeGrowing”),abranchoftheCompany,whoseprincipalactivityisgrapegrowingisincorporatedinZhifuDistrict,YantaiCity,ShandongProvince.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,GrapeGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”),abranchoftheCompany,isanenterpriseengagedingrapegrowingintheEconomicandTechnologicalDevelopmentZoneofYantaiCity,ShandongProvince.PursuanttoArticle27oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandArticle86oftheImplementationRegulationsoftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,R&DCentreenjoysthepreferentialpolicyofexemptionofenterpriseincometaxonincomefromgrapegrowing.BeijingChangyuAFIPAgricultureDevelopmentCo.,Ltd.(“AgricultureDevelopment”),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinMiyun,Beijing.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,AgricultureDevelopmentenjoysanexemptionofcorporateincometax.
XinjiangTianzhuWineCo.,Ltd.(“XinjiangTianzhu”,disposalinJune2023),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),NingxiaChateauChangyuMoserisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom2021to2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),NingxiaChateauChangyuMoserisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom2021to2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.NingxiaChangyuLongyuChateauCo.,Ltd.(“NingxiaChateau”),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinYinchuan,NingxiaHuiAutonomousRegion.InaccordancewiththeNoticeonContinuingtheEnterpriseIncomeTaxPoliciesfortheLarge-ScaleDevelopmentofWesternChina(NoticeoftheMinistryofFinance[2020]No.23),NingxiaChateauisqualifiedtoenjoypreferentialtaxationpolicies,whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2021to2030.Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”),asubsidiaryoftheCompany,isanenterpriseengagedinwineproductionandsales,incorporatedinShiheziCity,XinjiangUygurAutonomousRegion.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),Changyu(Ningxia)Wineisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom2021to2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.InaccordancewiththePRCEnterpriseIncomeTaxLawanditsimplementingregulations,theNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonImplementingtheInclusiveTaxDeductionandExemptionPoliciesforMicroandSmallEnterprises(No.13[2019]oftheMinistryofFinance),theAnnouncementonImplementationofIncomeTaxIncentivesforMicroandSmallEnterprisesandIndividually-ownedBusinesses(Announcement[2023]No.6fromtheMinistryofFinanceandtheStateAdministrationofTaxation)andtheAnnouncementonFurtherImplementationofIncomeTaxIncentivesforSmallEnterpriseswithMeagreProfits(Announcement[2022]No.13oftheMinistryofFinanceandtheStateTaxationAdministration),formicroandsmallenterprisesthatmeettheapplicationrequirementsthatthetaxableincomethatisnotmorethanRMB1million,theamountoftaxableincomeshallbereducedby25%,andtheapplicablerateofenterpriseincometaxshallbe20%;fortheannualtaxableincomeexceedingRMB1million,butisnotmorethanRMB3million,theamountoftaxableincomeshallbereducedby25%,andtheapplicablerateofenterpriseincometaxshallbe20%.BeijingChangyuWineMarketingCo.,Ltd.(“BeijingMarketing”),asubsidiaryoftheCompany,wasidentifiedasaqualifiedsmallenterprisewithmeagreprofits.
PursuanttotheAnnouncementonClarifyingVATReliefandOtherPoliciesforSmall-scaleVATTaxpayers(Announcement[2023]No.1oftheMinistryofFinanceandtheStateTaxationAdministration),thetaxablesalesrevenueofsmall-scaleVATtaxpayerstowhichalevyrateof3%isapplicableshallbesubjecttoVATatareducedlevyrateof1%;andtheprepaidVATitemstowhichapre-levyrateof3%isapplicableshallbesubjecttoareducedpre-levyrateof1%fromtheperiodfrom1January2023to31December2023.XinjiangChangyuSalesCo.,Ltd.WeimeisiTastingCentreBranchisentitledtotheaboveexemption.InaccordancewiththeNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonFurtherSteppinguptheImplementationofthePolicyfortheRefundofTerm-EndExcessInputValue-AddedTaxCredits(NoticeoftheMinistryofFinanceandStateTaxationAdministration[2022]No.14),thegovernmentshouldfurtherstepuptheimplementationofthepolicyfortherefundofterm-endexcessinputvalue-addedtaxcreditsandexpandthescopeofindustriesapplicabletothispolicy.TheCompanyanditsqualifiedsubsidiarieshaveenjoyedthispolicy.InaccordancewiththeNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheFurtherImplementationofReductionandExemptioninSixTaxesandTwoFeesforSmall-ScaleandMicroEnterprises(NoticeoftheMinistryofFinanceandStateTaxationAdministration[2022]No.10),from1January2022to31December2024,People’sGovernmentsofallprovinces,autonomousregionsandmunicipalitiescanreducetheresourcetax,urbanmaintenanceandconstructiontax,propertytax,Urbanandtownshiplandusetax,stampduty(excludingstampdutyonsecuritiestransaction),farmlandoccupationtax,educationsurcharges,andlocaleducationsurchargeswithina50%taxrangeforsmall-scaleVATtaxpayers,small-scaleandlow-profitenterprises,andindividually-ownedbusinessesbasedontheactualsituationintheregion.Shandong,Xinjiang,Ningxia,Shaanxi,andotherprovinces(regions,cities)areallsubjecttoa50%reductionin“sixtaxesandtwofees”,andsomesubsidiariesoftheCompanyarequalifiedtoenjoythetaxreduction.V.Notestotheconsolidatedfinancialstatements1Cashatbankandonhand
Item
| Item | 2023 | 2022 |
| Cashonhand | 74,951 | 47,954 |
| Bankdeposits | 2,217,280,801 | 1,643,577,420 |
| Othermonetaryfunds | 337,895 | 7,828,741 |
| Total | 2,217,693,647 | 1,651,454,115 |
| Including:Totaloverseasdeposits | 24,317,469 | 17,073,210 |
Asat31December2023,theGroup’stermdepositswithpreviousmaturityofmorethanthreemonthsisRMB254,200,000,withinterestrate1.70%-2.25%(31December2022:
RMB28,200,000).
Asat31December2023,theGroup’sothermonetaryassetsisasfollows:
Item
| Item | 2023 | 2022 |
| Depositsforlettersofcredit | - | 6,000,000 |
| Alipayaccountbalance | 192,997 | 1,695,245 |
| DepositforICBCplatform | 10,000 | 10,000 |
| Depositsforthecustoms | 134,898 | 123,496 |
| Total | 337,895 | 7,828,741 |
Asat31December2023,theGroupdidnothaveanyspecialinterestarrangementssuchastheestablishmentofjointfundmanagementaccountswithrelatedparties.2Billsreceivable
Classificationofbillsreceivable
| Item | 2023 | 2022 |
| Bankacceptancebills | 1,260,000 | 2,712,460 |
| Total | 1,260,000 | 2,712,460 |
Alloftheabovebillsareduewithinoneyear.3Accountsreceivable
(1)Accountsreceivablebycustomertypeareasfollows:
| Type | 31December2023 | 31December2022 |
| Amountsduefromrelatedparties | 4,401,307 | 2,827,473 |
| Amountsduefromothercustomers | 390,889,475 | 355,711,618 |
| Sub-total | 395,290,782 | 358,539,091 |
| Less:Provisionforbadanddoubtfuldebts | (13,158,448) | (14,556,106) |
| Total | 382,132,334 | 343,982,985 |
Asat31December2023,ownershiprestrictedaccountsreceivableisRMB73,628,265(31
December2022:RMB59,982,807),referringtoNoteV.53.
(2)Theageinganalysisofaccountsreceivableisasfollows:
| Ageing | 2023 | 2022 |
| Within1year(inclusive) | 387,161,172 | 349,764,300 |
| Over1yearbutwithin2years(inclusive) | 2,367,283 | 8,085,677 |
| Over2yearsbutwithin3years(inclusive) | 5,396,673 | 452,254 |
| Over3years | 365,654 | 236,860 |
| Sub-total | 395,290,782 | 358,539,091 |
| Less:Provisionforbadanddoubtfuldebts | (13,158,448) | (14,556,106) |
| Total | 382,132,334 | 343,982,985 |
Theageingiscountedstartingfromthedatewhenaccountsreceivablearerecognised.
(3)Accountsreceivablebyprovisioningmethod
AtalltimestheGroupmeasurestheimpairmentlossforaccountsreceivableatanamountequaltolifetimeECLs,andtheECLsarebasedonthenumberofoverduedaysandthelossgivendefault.AccordingtothehistoricalexperienceoftheGroup,therearenosignificantdifferencesinthelossesofdifferentcustomergroups.Therefore,differentcustomergroupsarenotfurtherdistinguishedwhencalculatingimpairmentlossbasedontheoverdueinformation.2023
Lossgivendefault
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.2% | 365,010,895 | 660,099 |
| Overduefor1to30days | 2.7% | 14,276,606 | 384,812 |
| Overduefor31to60days | 10.8% | 1,939,270 | 208,908 |
| Overduefor61to90days | 20.8% | 443,199 | 92,141 |
| Overduefor91to120days | 37.2% | 880,565 | 328,007 |
| Overduefor121to150days | 55.4% | 874,822 | 485,022 |
| Overduefor151to180days | 55.4% | 499,866 | 277,137 |
| Overduefor181to210days | 72.1% | 497,356 | 358,689 |
| Overduefor211to240days | 77.1% | 693,596 | 534,607 |
| Overduefor241to270days | 82.9% | 980,610 | 812,545 |
| Overduefor271to300days | 88.9% | 1,596,409 | 1,418,894 |
| Overduefor301to330days | 100.0% | 9,150 | 9,150 |
| Overduefor331to360days | 100.0% | 82,541 | 82,541 |
| Overduefor360days | 100.0% | 7,505,897 | 7,505,896 |
| Total | 3.3% | 395,290,782 | 13,158,448 |
2022
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.3% | 320,680,504 | 987,421 |
| Overduefor1to30days | 4.6% | 14,539,415 | 670,713 |
| Overduefor31to60days | 12.1% | 5,412,870 | 654,202 |
| Overduefor61to90days | 22.9% | 1,755,591 | 401,918 |
| Overduefor91to120days | 25.5% | 852,924 | 217,910 |
| Overduefor121to150days | 32.3% | 3,243,366 | 1,047,097 |
| Overduefor151to180days | 40.0% | 469,054 | 187,704 |
| Overduefor181to210days | 42.0% | 217,218 | 91,181 |
| Overduefor211to240days | 44.4% | 636,479 | 282,588 |
| Overduefor241to270days | 51.7% | 654,567 | 338,403 |
| Overduefor271to300days | 71.0% | 1,058,407 | 751,067 |
| Overduefor301to330days | 87.7% | 753,174 | 660,380 |
| Overduefor331to360days | 100.0% | 15,263 | 15,263 |
| Overduefor360days | 100.0% | 8,250,259 | 8,250,259 |
| Total | 4.1% | 358,539,091 | 14,556,106 |
Thelossgivendefaultismeasuredbasedontheactualcreditlossexperienceinthepast12months,andisadjustedtakingintoconsiderationthedifferencesamongtheeconomic
conditionsduringthehistoricaldatacollectionperiod,thecurrenteconomicconditionsandtheeconomicconditionsduringtheexpectedlifetime.
(4)Movementsofprovisionsforbadanddoubtfuldebts:
2023
| 2023 | 2022 | |
| Balanceatthebeginningoftheyear | (14,556,106) | (20,263,750) |
| Chargefortheyear | (7,361,616) | (15,084,381) |
| Recoveriesorreversalsduringtheyear | 8,759,274 | 19,837,178 |
| Transfersoutduringtheyear | - | 954,847 |
| Balanceattheendoftheyear | (13,158,448) | (14,556,106) |
(5)Fivelargestaccountsreceivablebydebtorattheendoftheyear:
| Name | RelationshipwiththeGroup | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Thirdparty | 147,458,311 | Within1year | 37.3% | 265,765 |
| DebtorTwo | Thirdparty | 14,267,454 | Within1year | 3.6% | 504,073 |
| DebtorThree | Thirdparty | 14,054,076 | Within1year | 3.6% | 496,535 |
| DebtorFour | Thirdparty | 9,396,987 | Within1year | 2.4% | 331,999 |
| DebtorFive | Thirdparty | 8,241,582 | Within1year | 2.1% | 291,178 |
| Total | 193,418,410 | 49.0% | 1,889,550 |
4Receivablesunderfinancing
| Item | Note | 2023 | 2022 |
| Billsreceivable | (1) | 408,316,028 | 309,329,918 |
(1)PledgedbillsreceivablebytheGroupattheendoftheyear:
Asat31December2023,therewasnopledgedbillsreceivable(31December2022:Nil).
(2)Outstandingendorsedordiscountedbillsthathavenotmaturedattheendoftheyear
| Item | Amountderecognisedatyearend |
| Bankacceptancebills | 394,923,505 |
| Total | 394,923,505 |
Asat31December2023,billsendorsedbytheGrouptootherpartieswhicharenotyetdueattheendoftheperiodisRMB394,923,505(31December2022:RMB500,480,279).Thenotesareusedforpaymenttosuppliersandconstructions.TheGroupbelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theGroupwouldundertakelimitedliabilityforthenotes.
5Prepayments
(1)Prepaymentsbycategory:
Item
| Item | 2023 | 2022 |
| Prepayments | 61,497,933 | 60,415,508 |
| Total | 61,497,933 | 60,415,508 |
(2)Theageinganalysisofprepaymentsisasfollows:
| Ageing | 2023 | 2022 | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within1year(inclusive) | 61,468,643 | 99.9% | 59,426,080 | 98.4% |
| Over1yearbutwithin2years(inclusive) | 29,290 | 0.1% | 989,428 | 1.6% |
| Total | 61,497,933 | 100.0% | 60,415,508 | 100.0% |
Theageingiscountedstartingfromthedatewhenprepaymentsarerecognised.
(3)Fivelargestprepaymentsbydebtorattheendoftheyear:
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Prepayments | 29,452,494 | Within1year | 47.9% | - |
| DebtorTwo | Prepayments | 8,104,605 | Within1year | 13.2% | - |
| DebtorThree | Prepayments | 4,832,462 | Within1year | 7.9% | - |
| DebtorFour | Prepayments | 1,715,378 | Within1year | 2.8% | - |
| DebtorFive | Prepayments | 1,274,822 | Within1year | 2.1% | - |
| Total | 45,379,761 | 73.9% | -? |
6Otherreceivables
| 31December2023 | 31December2022 | |
| Others | 71,496,276 | 70,542,398 |
| Total | 71,496,276 | 70,542,398 |
(1)Othersbycustomertype:
| Customertype | 31December2023 | 31December2022 |
| Amountsduefromothercompanies | 71,496,276 | 70,542,398 |
| Sub-total | 71,496,276 | 70,542,398 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 71,496,276 | 70,542,398 |
(2)Theageinganalysisisasfollows:
Ageing
| Ageing | 2023 | 2022 |
| Within1year(inclusive) | 29,551,266 | 67,221,713 |
| Over1yearbutwithin2years(inclusive) | 39,753,227 | 1,208,361 |
| Over2yearsbutwithin3years(inclusive) | 160,000 | 57,928 |
| Over3years | 2,031,783 | 2,054,396 |
| Sub-total | 71,496,276 | 70,542,398 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 71,496,276 | 70,542,398 |
Theageingiscountedstartingfromthedatewhenotherreceivablesarerecognised.
(3)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2023,nobadanddoubtfuldebtprovisionwasmadeforotherreceivables(31December2022:Nil).Asat31December2023,theGrouphasnootherreceivableswrittenoff(31December2022:Nil).
(4)Otherscategorisedbynature
| Natureofotherreceivables | 2023 | 2022 |
| Landpurchasesandreservesreceivable | 37,768,902 | 41,268,902 |
| RefundofconsumptiontaxandVAT | 19,104,008 | 12,509,201 |
| Deposit | 5,429,202 | 5,578,001 |
| Pettycashreceivable | 154,354 | 440,759 |
| Others | 9,039,810 | 10,745,535 |
| Sub-total | 71,496,276 | 70,542,398 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 71,496,276 | 70,542,398 |
(5)Fivelargestothers-bydebtorattheendoftheyear
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Landpurchasesandreservesreceivable | 37,768,902 | 1-2years | 52.8% | -? |
| DebtorTwo | RefundofVAT | 17,894,493 | Within1year | 25.0% | -? |
| DebtorThree | Housingmaintenancefunds | 2,670,094 | Within1year | 3.7% | -? |
| DebtorFour | RefundofVAT | 736,946 | Within1year | 1.0% | -? |
| DebtorFive | Deposits | 572,880 | Within1year | 0.8% | -? |
| Total | 59,643,315 | 83.3% | ?- |
7Inventories
(1)Inventoriesbycategory:
Item
| Item | 2023 | 2022 | ||||
| Bookvalue | Provisionforimpairmentofinventories | Carryingamount | Bookvalue | Provisionforimpairmentofinventories | Carryingamount | |
| Rawmaterials | 241,961,713 | - | 241,961,713 | 258,200,178 | - | 258,200,178 |
| Workinprogress | 1,915,860,327 | - | 1,915,860,327 | 1,986,391,270 | - | 1,986,391,270 |
| Finishedgoods | 625,076,081 | (17,507,534) | 607,568,547 | 673,171,026 | (14,363,959) | 658,807,067 |
| Total | 2,782,898,121 | (17,507,534) | 2,765,390,587 | 2,917,762,474 | (14,363,959) | 2,903,398,515 |
(2)Provisionforimpairmentofinventories:
| Item | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Closingbalance |
| Recognised | Reversal | |||
| Finishedgoods | 14,363,959 | 17,507,534 | (14,363,959) | 17,507,534 |
8Othercurrentassets
| Item | 2023 | 2022 |
| Inputtaxtobecredited | 65,228,189 | 44,270,238 |
| Righttorecoverreturnedgoods | 16,876,869 | - |
| Prepaidincometaxes | 4,438,001 | 19,102,111 |
| Deferredexpenses | 1,825,483 | 1,034,403 |
| Trademarks(Note) | - | 120,930,641 |
| Total | 88,368,542 | 185,337,393 |
Notes:
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theGroupmayusecertaintrademarksofChangyuGroupCompany,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup’sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.Accordingtotheaboveroyaltyagreement,ChangyuGroupcollectedatotalofRMB576,507,809forroyaltyfrom2013to2019,ofwhich51%wasusedtopromotetrademarkssuchasChangyuandtheproductofthiscontract,totallingRMB294,018,093.TheamountisusedforpromotionofChangyuandothertrademarksandtheproductsofthiscontract,totallingRMB62,250,368,thedifferenceisRMB231,768,615(includingtax).On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGrouppaysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon0.98%ofthesalesvolumeoftheGroup‘scontractproductsusingthistrademark.Article6.3isamendedto:
TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.
ChangyuGrouppromisedtooffsetthedifferenceofRMB231,768,615abovewiththeroyaltyforfouryears,i.e.from2019to2022.Ifitisnotsufficientfordeduction,therestwillberepaidinaone-offmannerin2023.Ifthereissurplus,thesurpluspartoftheroyaltywillbechargedfromtheyearwhenthesurplusoccurs.TheGrouprecoveredthebalanceofChangyuGroup’strademarkroyaltiesinDecember2023.9Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
Item
| Item | 2023 | 2022 |
| Investmentsinjointventures | 37,018,893 | 37,970,535 |
| Investmentsinassociates | 1,266,727 | 3,400,850 |
| Sub-total | 38,285,620 | 41,371,385 |
| Less:Provisionforimpairment | - | - |
| Total | 38,285,620 | 41,371,385 |
(2)Movementsoflong-termequityinvestmentsduringtheyearareasfollows:
Investee
| Investee | 2023Balanceatthebeginningoftheyear | Movementsduringtheyear | 2023Closingbalance | Shareholdingpercentage | |
| (Losses)/Profitsfrominvestmentsunderequity-methodl | Others | ||||
| Jointventures | ? | ? | ? | ? | |
| SASL&MHoldings(“L&MHoldings”) | 37,970,535 | (951,642) | - | 37,018,893 | 55% |
| Associates | ? | ? | ? | ? | ? |
| WEMISS(Shanghai)EnterpriseDevelopmentCo.,Ltd(“WEMISSShanghai”)(Note1) | 2,318,351 | 54,934 | (2,373,285) | - | 100% |
| ShanghaiYufengBrandManagementCo.,Ltd.(Note2) | 420,369 | (55,007) | - | 365,362 | ? |
| YantaiGuolongWineIndustryCo.,Ltd.(Note2) | 662,130 | 239,235 | - | 901,365 | 10% |
| Sub-total | 3,400,850 | 239,162 | (2,373,285) | 1,266,727 | 10%? |
| Total | 41,371,385 | (712,480) | (2,373,285) | 38,285,620 | |
Note1:AccordingtotheEquityTransferContractsignedbytheCompanyandBeijingWanfengTradingCo.,Ltd.(“BeijingWanfeng”)in2023,
BeijingWanfengtransferredits70%equityinWeimeisiShanghaitotheCompanyatapriceofRMB5,537,700,andWeimeisiShanghaibecomesawholly-ownedsubsidiaryoftheCompanyuponthecompletionofthistransaction.TherelatedtransactionwascompletedinJanuary2023,pleaseseeNoteVII.1fordetails.Note2:TheGrouphasappointedonedirectortoeachoftheseinvestees.
10Investmentproperties
Plantsand
buildings
| Plantsandbuildings | |
| Cost | |
| 31December2022 | 70,954,045 |
| Transferin | 10,211,574 |
| 31December2023 | 81,165,619 |
| Accumulateddepreciation | ? |
| 31December2022 | (48,838,727) |
| Transferin | (5,125,009) |
| Chargefortheyear | (2,719,052) |
| 31December2023 | (56,682,788) |
| Carryingamount | ? |
| 31December2023 | 24,482,831 |
| 31December2022 | 22,115,318 |
11Fixedassets
(1)Fixedassets
| Item | Plant&buildings | Machinery&equipment | Motorvehicles | Total |
| Cost | ||||
| 31December2022 | 5,878,199,055 | 2,793,728,175 | 25,888,552 | 8,697,815,782 |
| Additionsduringtheyear | ? | ? | ? | ?? |
| -Purchases | 30,659,690 | 73,274,720 | 174,932 | 104,109,342 |
| -Transfersfromconstructioninprogress | 6,273,036 | 1,726,052 | - | 7,999,088 |
| -TransferstoInvestmentproperties | (10,211,574) | - | - | (10,211,574) |
| Disposalsorwritten-offsduringtheyear | (22,448) | (35,868,072) | (794,809) | (36,685,329) |
| DisposalsofSubsidiaries | (22,793,000) | (21,338,824) | (1,000,461) | (45,132,285) |
| 31December2023 | 5,882,104,759 | 2,811,522,051 | 24,268,214 | 8,717,895,024 |
| Accumulateddepreciation | ? | ? | ? | ? |
| 31December2022 | (1,167,095,365) | (1,477,263,867) | (22,633,029) | (2,666,992,261) |
| Chargefortheyear | (162,015,401) | (150,533,496) | (1,793,186) | (314,342,083) |
| TransferstoInvestmentproperties | 5,125,009 | - | - | 5,125,009 |
| Disposalsorwritten-offsduringtheyear | 22,000 | 31,996,269 | 706,459 | 32,724,728 |
| DisposalsofSubsidiaries | 11,697,956 | 18,387,141 | 950,438 | 31,035,535 |
| 31December2023 | (1,312,265,801) | (1,577,413,953) | (22,769,318) | (2,912,449,072) |
| Provisionforimpairment | ? | ? | ? | ? |
| 31December2022 | - | (2,685,549) | - | (2,685,549) |
| Accruedduringtheyear | - | (10,363,383) | - | (10,363,383) |
| DisposalsofSubsidiaries | - | 2,685,549 | - | 2,685,549 |
| 31December2023 | - | (10,363,383) | - | (10,363,383) |
| Carryingamount | ? | ? | ? | ? |
| 31December2023 | 4,569,838,958 | 1,223,744,715 | 1,498,896 | 5,795,082,569 |
| 31December2022 | 4,711,103,690 | 1,313,778,759 | 3,255,523 | 6,028,137,972 |
Asat31December2023,ownershiprestrictednetvalueoffixedassetsisRMB37,985,117(31December2022:RMB303,897,124),referringtoNoteV.53.
(2)Temporarilyidlefixedassets
Item
| Item | Cost | Accumulateddepreciation | Provisionforimpairment | Carryingamount |
| Machineryequipment | 29,423,698 | (19,060,315) | (10,363,383) | - |
| Total | 29,423,698 | (19,060,315) | (10,363,383) | - |
(3)Fixedassetsleasedoutunderoperatingleases
| Item | Carryingamountattheendoftheyear |
| Plant&buildings | 89,996,993 |
| Machineryequipment | 931 |
Fixedassetspendingcertificatesofownership
| Item | Carryingamount | Reasonwhythecertificatesarepending |
| Dormitories,mainbuildingandreceptionbuildingofChanganChateau | 260,797,650 | Processing |
| BuildingsandboilerhousesofKOYABrand | 167,954,341 | Processing |
| Europeantown,mainbuildingandservicebuildingofAFIP | 158,783,634 | Processing |
| FermentationshopofZhangyu(Jingyang) | 4,296,086 | Processing |
| Office,experimentbuildingandworkshopofFermentationCentre | 4,163,331 | Processing |
| FinishedgoodswarehouseandworkshopofKylinPackaging | 1,943,460 | Processing |
| Others | 874,037 | Processing |
ThebuildingswithoutpropertycertificateabovehavenosignificantimpactontheGroup’smanagement.12Constructioninprogress
(1)Constructioninprogress
| Project | 2023 | 2022 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| NnigxiaChateaumuseumconstructionproject | 1,376,147 | - | 1,376,147 | - | - | - |
| Museumconstructionproject | - | - | - | 32,981,419 | - | 32,981,419 |
| ShiheziChateauConstructionProject | 700,000 | - | 700,000 | 7,065,744 | - | 7,065,744 |
| OtherCompanies’ConstructionProject | 1,247,094 | - | 1,247,094 | 886,998 | - | 886,998 |
| Total | 3,323,241 | - | 3,323,241 | 40,934,161 | - | 40,934,161 |
(2)Movementsofmajorconstructionprojectsinprogressduringtheyear
Item
| Item | Budget(RMBmillion) | Openingbalance | Additionsduringtheyear | Transferstofixedassets | Othertransfersout | Closingbalance | Percentageofactualcosttobudget(%) | Accumulatedcapitalisedinterest | Attributableto:Interestcapitalisedfortheyear | Interestrateforcapitalisationin2023(%) | Sourcesoffunding |
| Museumconstructionproject | 51 | 32,981,419 | - | - | (32,981,419) | - | 100% | - | - | - | Self-raised |
| ShiheziChateauConstructionProject | 780 | 7,065,744 | 700,000 | (7,065,744) | - | 700,000 | 98% | - | - | - | Self-raised |
13Bearerbiologicalassets
Bearerbiologicalassetsarevines,whichmeasuredincostmethod.
Item
| Item | Immaturebiologicalassets | Maturebiologicalassets | Total |
| Originalbookvalue | |||
| 31December2022 | 23,405,557 | 252,471,374 | 275,876,931 |
| Additionsduringtheyear | ? | ? | ? |
| -Increaseincultivated | 10,319,864 | - | 10,319,864 |
| -Transferredtomature | (83,870) | 83,870 | - |
| Decreaseduringtheyear | (850,105) | (3,716,924) | (4,567,029) |
| 31December2023 | 32,791,446 | 248,838,320 | 281,629,766 |
| Accumulatedamortisation | ? | ? | ? |
| 31December2022 | - | (91,456,190) | (91,456,190) |
| Chargefortheyear | - | (13,800,290) | (13,800,290) |
| Decreaseduringtheyear | - | 1,088,697 | 1,088,697 |
| 31December2023 | - | (104,167,783) | (104,167,783) |
| Carryingamount | ? | ? | ? |
| 31December2023 | 32,791,446 | 144,670,537 | 177,461,983 |
| 31December2022 | 23,405,557 | 161,015,184 | 184,420,741 |
Asat31December2023,thereisnobiologicalassetwithownershiprestricted(31December2022:Nil).Asat31December2023,noprovisionforimpairmentofbiologicalassetoftheGroupwasrecognisedasthereisnoanyindicationexists(31December2022:Nil).14Right-of-useassets
Asalessee
| Item | Plant&buildings | Lands | Others | Total |
| Cost | ||||
| Balanceatthebeginningoftheyear | 84,818,532 | 137,980,409 | 1,697,986 | 224,496,927 |
| Additionsduringtheyear | 3,966,354 | - | - | 3,966,354 |
| Derecognitionofright-of-useassets | (8,359,502) | - | - | (8,359,502) |
| Balanceattheendoftheyear | 80,425,384 | 137,980,409 | 1,697,986 | 220,103,779 |
| Accumulateddepreciation | ? | ? | ? | ? |
| Balanceatthebeginningoftheyear | (33,923,955) | (49,667,021) | (1,018,792) | (84,609,768) |
| Chargefortheyear | (16,031,558) | (5,736,448) | (339,597) | (22,107,603) |
| Derecognitionofright-of-useassets | 8,359,502 | - | - | 8,359,502 |
| Balanceattheendoftheyear | (41,596,011) | (55,403,469) | (1,358,389) | (98,357,869) |
| Carryingamounts | ? | ? | ? | ? |
| Attheendoftheyear | 38,829,373 | 82,576,940 | 339,597 | 121,745,910 |
| Atthebeginningoftheyear | 50,894,577 | 88,313,388 | 679,194 | 139,887,159 |
15Intangibleassets
Item
| Item | Landuserights | Softwarelicenses | Trademarks | Total |
| Originalbookvalue | ||||
| 31December2022 | 475,770,881 | 101,979,429 | 189,575,068 | 767,325,378 |
| Additionsduringtheyear | ? | ? | ? | ? |
| -Purchase | 76,329 | 1,680,094 | 151,673 | 1,908,096 |
| Decreaseduringtheyear | ? | ? | ? | ? |
| -Disposals | (31,326,363) | (771,307) | (11,003) | (32,108,673) |
| 31December2023 | 444,520,847 | 102,888,216 | 189,715,738 | 737,124,801 |
| Accumulatedamortisation | ? | ? | ? | ? |
| 31December2022 | (110,698,068) | (62,835,583) | (15,550,881) | (189,084,532) |
| Additionsduringtheyear | ? | ? | ? | ? |
| -Chargefortheyear | (8,864,116) | (7,611,775) | (456,971) | (16,932,862) |
| Decreaseduringtheyear | ? | ? | ? | ? |
| -Disposal | 10,746,374 | 768,895 | 3,100 | 11,518,369 |
| 31December2023 | (108,815,810) | (69,678,463) | (16,004,752) | (194,499,025) |
| Carryingamount | ? | ? | ? | ? |
| 31December2023 | 335,705,037 | 33,209,753 | 173,710,986 | 542,625,776 |
| 31December2022 | 365,072,813 | 39,143,846 | 174,024,187 | 578,240,846 |
Asat31December2023,theGrouphaslanduserightwithinfiniteusefullivesofRMB32,863,731(31December2022:RMB32,376,235),representingthefreeholdlandheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstateunderrelevantChileandAustralialaws,onwhichtheamortisationisnotrequired.Asat31December2023,theGrouphastrademarkwithinfiniteusefullivesofRMB155,447,037(31December2022:RMB155,345,421),whichisheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstate.Therecoverableamountofthetrademarkisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflowsgeneratedfromtheassetgrouptowhichthesingleassetsoftrademarkrightbelongs.Themanagementpreparesthecashflowprojectionforfuture5years(the“projectingperiod”)basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the“subsequentperiod”).Thepretaxdiscountratesusedinthecashflowprojectionsare13.3%and13.9%,（2022：13.0%-14.1%）.Theestimatedlong-termaveragegrowthrateofcashflowsafter5yearsis0.0%-2.5%(2022:0.0%-2.5%),whichrepresentsthelong-termaveragegrowthratefortheindustryortheregioninwhichthecompanyoperates.Accordingtotheresultofimpairmentassessment,bytheendof31December2023,themanagementbelievesthereisnoimpairmentlossonthosetrademarkswithinfiniteusefullivesoftheGroup.Asat31December2023,thereisnoownershiprestrictednetvalueofintangibleassets.(31December2022:RMB169,385,254).
16Goodwill
(1)Changesingoodwill
Nameofinvesteeoreventsfromwhichgoodwillarose
| Nameofinvesteeoreventsfromwhichgoodwillarose | Note | 31December2022 | Additionsduringtheyear | Disposalsduringtheyear | 31December2023 |
| Originalbookvalue | |||||
| EtablissementsRoulletFransac(“RoulletFransac”) | (a) | 13,112,525 | - | - | 13,112,525 |
| DicotPartners,S.L(“Dicot”) | (a) | 92,391,901 | - | - | 92,391,901 |
| ChileIndomitaWineGroup | (a) | 6,870,115 | - | - | 6,870,115 |
| AustraliaKilikanoonEstate | (a) | 37,063,130 | - | - | 37,063,130 |
| Sub-total | 149,437,671 | - | - | 149,437,671 | |
| Impairmentprovision | ? | ? | ? | ||
| AustraliaKilikanoonEstate | (37,063,130) | - | - | (37,063,130) | |
| DicotPartners,S.L(“Dicot”) | (5,210,925) | - | - | (5,210,925) | |
| Sub-total | (42,274,055) | - | - | (42,274,055) | |
| Carryingamount | 107,163,616 | - | - | 107,163,616 |
(a)TheGroupacquiredFransacSales,DicotandMirefleurs,ChileIndomitaWineGroup
andAustraliaKilikanoonEstateinDecember2013,September2015,July2017andJanuary2018respectively,resultinginrespectivegoodwillamountingtoRMB13,112,525,RMB92,391,901,RMB6,870,115andRMB37,063,130.Thegoodwillhadbeenallocatedtocorrespondingassetgroupsforimpairmenttesting.
(2)Provisionforimpairmentofgoodwill
TheGrouphasallocatedtheabovegoodwilltorelevantassetgroupsforimpairmenttesting.Asat31December2023,AustraliaKilikanoonEstatehasmadefullprovisionforimpairmentofgoodwillandAtriohasmadeprovisionforimpairmentamountedtoRMB5,210,925forthecurrentperiod.Therecoverableamountoftheassetgroupisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflows.Themanagementpreparesthecashflowprojectionforfuture5years(the“projectingperiod”)basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the“subsequentperiod”).ThepretaxdiscountrateusedincalculatingtherecoverableamountsofRoulletFransac,Dicot,andMirefleurs,IndomitaWineare10.7%,9.1%,and13.3%,respectively(2022:11.4%,10.8%,and13.0%).Thekeyassumptionisthegrowthrateofannualrevenuegrowthrateofrelevantsubsidiaries,whichiscomputedbasedontheexpectedgrowthrateofeachsubsidiaryandlong-termaveragegrowthratesofrelevantindustries.Otherrelevantkeyassumptionisbudgetgrossprofitmargin,whichisdeterminedbasedonthehistoricalperformanceofeachsubsidiaryanditsexpectationsformarketdevelopment.17Long-termdeferredexpenses
| Item | 31December2022 | Additionsduringtheyear | Amortisationfortheyear | 31December2023 |
| Landrequisitionfee | 45,043,781 | - | (1,778,943) | 43,264,838 |
| Greeningfee | 118,996,004 | - | (8,680,919) | 110,315,085 |
| Leaseholdimprovement | 103,895,364 | 50,256,817 | (7,514,688) | 146,637,493 |
| Others | 6,764,083 | 220,500 | (539,892) | 6,444,691 |
| Total | 274,699,232 | 50,477,317 | (18,514,442) | 306,662,107 |
18Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetsandliabilities
Item
| Item | 31December2023 | 31December2022 | ||
| Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | |
| Deferredtaxassets: | ||||
| Provisionforimpairmentofassets | 41,029,365 | 10,563,366 | 31,605,614 | 8,024,903 |
| Unrealisedprofitsofintra-grouptransactions | 403,653,124 | 100,913,281 | 431,328,252 | 107,832,063 |
| Unpaidbonus | 138,873,637 | 34,718,409 | 132,673,269 | 33,168,317 |
| Terminationbenefits | 8,475,845 | 2,118,961 | 9,422,154 | 2,355,538 |
| Deductibletaxlosses | 261,937,563 | 61,634,797 | 285,560,642 | 67,483,931 |
| Deferredincome | 32,582,734 | 7,021,304 | 38,389,058 | 8,288,411 |
| EffectsofRestrictedShareIncentivePlan | 17,614,180 | 4,370,992 | - | - |
| Effectoftheleasestandard | 708,367 | 177,094 | 837,972 | 209,493 |
| Sub-total | 904,874,815 | 221,518,204 | 929,816,961 | 227,362,656 |
| Deferredtaxliabilities: | ||||
| Revaluationduetobusinesscombinationsinvolvingentitiesnotundercommoncontrol | 26,659,530 | 7,718,480 | 43,651,105 | 10,577,065 |
| Effectoftheleasestandard | 3,995,628 | 1,001,249 | 2,759,468 | 689,867 |
| Sub-total | 30,655,158 | 8,719,729 | 46,410,573 | 11,266,932 |
(2)Detailsofunrecogniseddeferredtaxassets
| Item | 2023 | 2022 |
| Deductibletaxlosses | 420,651,124 | 352,775,161 |
(3)Expirationofdeductibletaxlossesforunrecogniseddeferredtaxassets
| Year | 2023 | 2022 |
| 2023 | - | 22,801,737 |
| 2024 | 36,171,778 | 42,088,453 |
| 2025 | 70,528,510 | 75,724,538 |
| 2026 | 68,479,171 | 72,197,891 |
| 2027 | 128,025,572 | 139,962,542 |
| 2028 | 117,446,093 | - |
| Total | 420,651,124 | 352,775,161 |
19Othernon-currentassets
| Item | 2023 | 2022 |
| PrepaidforConstructionfee | 1,760,000 | - |
20Short-termloans
Short-termloansbycategory:
Item
| Item | 2023 | 2022 |
| Unsecuredloans | 178,605,850 | 227,866,802 |
| Mortgagedloans | 163,103,275 | 127,908,137 |
| Guaranteedloans | 23,272,320 | 33,603,541 |
| Total | 364,981,445 | 389,378,480 |
Asat31December2023,detailsofshort-termborrowingswereasfollows:
| Amount | Exchangerate | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | |
| RMB | % | % | ||||
| Creditloans(RMB) | 100,000,000 | 1.0000 | 100,000,000 | Floating | 1YearLPR-0.95% | 2.70% |
| Creditloans(USD) | 1,000,000 | 7.0871 | 7,087,130 | Fixed | 7.30% | 7.30% |
| Creditloans(EUR) | 9,100,000 | 7.8592 | 71,518,720 | Floating | 3.90%~6.95% | 3.90%~6.95% |
| Mortgagedloans(EUR) | 9,368,417 | 7.8592 | 73,628,264 | Floating | 4.35%~5.40% | 4.35%~5.40% |
| Mortgagedloans(USD) | 12,625,000 | 7.0871 | 89,475,011 | Fixed | 6.83%~7.30% | 6.83%~7.30% |
| Securedloan(AUD) | 4,800,000 | 4.8484 | 23,272,320 | Floating | 1.81%~2.54% | 1.81%~2.54% |
| Total | ? | ? | 364,981,445 | ? | ? | ? |
?Asat31December2023,mortgagedloans(EUR)wereHaciendayVi?edosMarquesdel
Atrio,S.L.U(“Atrio“)factoringofaccountsreceivablefrombanksincludingBancoANTANDER、BBVA、CAIXABANKofEUR9,368,417(equivalentofRMB73,628,264)(31December2022:EUR8,080,778(equivalentofRMB59,982,807).?On31December2023,ChileIndomitaWineGrouppledgeditsfixedassetstoBanco
ScotiabankandBancodeChiletoborrowUSD12,625,000(equivalenttoRMB89,475,011)(31December2022:USD9,750,000(equivalenttoRMB67,925,330).?On31December2023,thesecuredloanrepresentedthesecuredloanofAustraliaKilikanoonEstateofAUD4,800,000(equivalenttoRMB23,272,320)(31December2022:
AUD7,128,758,equivalenttoRMB33,603,541).21Accountspayable
(1)Detailsofadvancepaymentsreceivedareasfollows:
| Ageing | 2023 | 2022 |
| Within1year(inclusive) | 459,106,370 | 466,035,065 |
| Over1yearbutwithin2years(inclusive) | 10,654,983 | 34,588,275 |
| Over2yearsbutwithin3years(inclusive) | 990,316 | 1,637,390 |
| Over3years | 2,600,856 | 1,063,016 |
| Total | 473,352,525 | 503,323,746 |
(2)Thereisnosignificantadvancepaymentsreceivedwithageingofmorethanoneyear.
22Contractliabilities
Item
| Item | Asat31December2023 | Asat1January2023 |
| Receiptinadvance | 174,757,233 | 164,437,033 |
| Withholdingsalesrebates | 521,616 | 1,290,958 |
| Total | 175,278,849 | 165,727,991 |
ContractliabilitiesprimarilyrelatetotheGroup’sadvancesfromsalescontractsofspecificcustomersandthewithholdingsalesrebates.Relevantcontractliabilitiesarerecognisedasrevenuewhenthecontrolofthegoodsistransferredtothecustomer.23Employeebenefitspayable
(1)Employeebenefitspayable:
| Note | 31December2022 | Additionsduringtheyear | Decreaseduringtheyear | 31December2023 | |
| Short-termemployeebenefits | (2) | 173,197,491 | 453,422,444 | (450,084,972) | 176,534,963 |
| Post-employmentbenefits-definedcontributionplans | (3) | 331,893 | 36,838,982 | (36,850,391) | 320,484 |
| Terminationbenefits | 9,422,154 | 3,537,949 | (4,484,258) | 8,475,845 | |
| Total | 182,951,538 | 493,799,375 | (491,419,621) | 185,331,292 |
(2)Short-termemployeebenefits
| 31December2022 | Additionsduringtheyear | Decreaseduringtheyear | 31December2023 | |
| Salaries,bonuses,allowances | 169,643,402 | 395,188,658 | (391,481,809) | 173,350,251 |
| Staffwelfare | 1,460,170 | 23,794,432 | (24,007,235) | 1,247,367 |
| Socialinsurance | 307,244 | 17,496,294 | (17,508,522) | 295,016 |
| Medicalinsurance | 307,244 | 15,679,097 | (15,691,325) | 295,016 |
| Work-relatedinjuryinsurance | - | 1,347,906 | (1,347,906) | - |
| Maternityinsurance | - | 469,291 | (469,291) | - |
| Housingfund | 38,582 | 11,384,809 | (11,384,809) | 38,582 |
| Labourunionfee,staffandworkers’educationfee | 1,748,093 | 5,558,251 | (5,702,597) | 1,603,747 |
| Total | 173,197,491 | 453,422,444 | (450,084,972) | 176,534,963 |
(3)Post-employmentbenefits-definedcontributionplans
| 31December2022 | Additionsduringtheyear | Decreaseduringtheyear | 31December2023 | |
| Basicpensioninsurance | 330,660 | 35,627,108 | (35,638,517) | 319,251 |
| Unemploymentinsurance | 1,233 | 1,211,874 | (1,211,874) | 1,233 |
| Total | 331,893 | 36,838,982 | (36,850,391) | 320,484 |
24Taxespayable
Item
| Item | 2023 | 2022 |
| Value-addedtax | 65,545,854 | 42,260,465 |
| Consumptiontax | 50,879,210 | 45,524,174 |
| Corporateincometax | 134,574,175 | 131,264,991 |
| Individualincometax | 1,414,309 | 1,199,990 |
| Taxontheuseofurbanland | 1,730,986 | 1,899,840 |
| Educationsurcharges | 5,072,436 | 2,731,857 |
| Urbanmaintenanceandconstructiontax | 6,787,018 | 6,168,990 |
| Others | 8,719,443 | 8,645,595 |
| Total | 274,723,431 | 239,695,902 |
25Otherpayables
| Note | 31December2023 | 31December2022 | |
| Interestpayable | - | 88,889 | |
| Dividendspayable | - | 70,317 | |
| Others | (1) | 555,634,336 | 372,449,483 |
| Total | 555,634,336 | 372,608,689 |
(1)Others
(a)Detailsofothersbynatureareasfollows:
| Item | 2023 | 2022 |
| Depositpayabletodealer | 194,060,993 | 207,492,570 |
| Advertisingfeepayable | 104,815,517 | 40,244,601 |
| Payablesforrepurchaseoftreasuryshares | 103,411,919 | - |
| Trademarks | 27,515,798 | - |
| Freightchargespayable | 22,301,368 | 25,894,816 |
| Depositsduetosuppliers | 18,284,971 | 13,549,010 |
| Equipmentandconstructionfeepayable | 14,832,439 | 15,976,573 |
| Payablesforequities | 14,623,377 | - |
| Contractingfeepayable | 3,360,355 | 7,407,093 |
| Staffdeposit | 462,672 | 508,175 |
| Others | 51,964,927 | 61,376,645 |
| Total | 555,634,336 | 372,449,483 |
(b)Therearenosignificantothersagedoveroneyearaccuredthisyear.
26Othercurrentliabilities
Item
| Item | 2023 | 2022 |
| Refundliabilitiesarisingfromrightsofreturn | 24,869,246 | - |
| Taxtobetransferredoutassales | 20,089,051 | 18,945,706 |
| Total | 44,958,297 | 18,945,706 |
27Non-currentliabilitiesduewithinoneyear
Non-currentliabilitiesduewithinoneyearbycategoryareasfollows:
| Item | 2023 | 2022 |
| Long-termloansduewithinoneyear | 58,510,868 | 103,011,894 |
| Long-termpayablesduewithinoneyear | - | 22,000,000 |
| Leaseliabilitiesduewithinoneyear | 20,013,125 | 19,008,940 |
| Total | 78,523,993 | 144,020,834 |
28Long-termloans
Long-termloansbycategory
| Item | 2023 | 2022 |
| Creditloans | 125,127,311 | 186,342,909 |
| Guaranteedloans | - | 44,781,100 |
| Less:Long-termloansduewithinoneyear | 58,510,868 | 103,011,894 |
| Total | 66,616,443 | 128,112,115 |
Asat31December2023,detailsoflong-termborrowingswereasfollows:
| Amount | Exchangerate | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | Long-termloansduewithinoneyear | Long-termloansdueafteroneyear | |
| RMB | % | % | ||||||
| Creditloans(EUR) | 745,687 | 7.8592 | 5,860,499 | Fixed | 1.50%-3.28% | 1.50%-3.28% | 5,737,711 | 122,788 |
| Creditloans(EUR) | 15,175,439 | 7.8592 | 119,266,812 | Floating | 2.00%~7.59% | 2.00%~7.59% | 52,773,157 | 66,493,655 |
| Total | 125,127,311 | 58,510,868 | 66,616,443 |
Asat31December2023,Creditloans(EUR)wereEUR15,921,126borrowedbyBancoSabadell,Bankia,BancoSantander,BBVA,CajaRuraldeNavarretc.(equivalentofRMB125,127,311(31December2022:EUR25,103,788,equivalentofRMB186,342,909).29Leaseliabilities
| Item | Note | 2023 | 2022 |
| Long-termleaseliabilities | ? | 105,051,460 | 128,514,033 |
| Less:Leaseliabilitiesduewithinoneyear | V.27 | 20,013,125 | 19,008,940 |
| Total | ? | 85,038,335 | 109,505,093 |
30Long-termpayables
Item
| Item | 2023 | 2022 |
| AgriculturalDevelopmentFundofChina | - | 64,000,000 |
| Less:Long-termpayablesduewithinoneyear | - | 22,000,000 |
| Balanceoflong-termpayables | - | 42,000,000 |
In2016,RMB305,000,000,fromCADFwasinvestedinR&DCentre,CADFaccountedfor
37.9%oftheregisteredcapital.Accordingtotheinvestmentagreement,CADFwillrecoveryinvestmentfundsover10years,theinvestmentincomereceivedequalto1.2%oftheremainingunpaidprincipalperannum.Inadditiontothefixedincome,CADFwillnolongerenjoyotherprofitsorbearthelossofR&DCentre.Therefore,althoughtheinvestmentinR&DCentre,nominallyequityinvestment,isactuallyadebtinvestment(financialdiscountloan).TheGrouptakethisinvestmentaslong-termpayables,whichmeasuredinamortizedcost.Asat31December2023,theGrouphasrepaidtheamountinfull.31Deferredincome
| Item | 31December2022 | Additionsduringtheyear | Decreaseduringtheyear | 31December2023 |
| Governmentgrants | 38,389,058 | 4,000,000 | (9,806,324) | 32,582,734 |
Governmentgrants:
Liability
| Liability | 31December2022 | Additionsofgovernmentgrantsduringtheyear | Amountsrecognisedinotherincomeduringtheyear | 31December2023 | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 16,400,000 | - | (4,100,000) | 12,300,000 | Governmentgrantsrelatedtoassets |
| Retainingwallsubsidies | 5,973,333 | 3,500,000 | (638,000) | 8,835,333 | Governmentgrantsrelatedtoassets |
| Xinjiangindustrialrevitalisationandtechnologicaltransformationproject | 9,954,000 | - | (1,422,000) | 8,532,000 | Governmentgrantsrelatedtoassets |
| Winefermentationcapacityconstructionproject | 1,600,000 | - | (400,000) | 1,200,000 | Governmentgrantsrelatedtoassets |
| Specialfundforefficientwater-savingirrigationproject | 991,000 | - | (162,000) | 829,000 | Governmentgrantsrelatedtoassets |
| Subsidyforeconomicandenergy-savingtechnologicaltransformationprojects | 513,200 | - | (128,300) | 384,900 | Governmentgrantsrelatedtoassets |
| Subsidiesforconstructionofscenicspots | - | 250,000 | (4,216) | 245,784 | Governmentgrantsrelatedtoassets |
| SubsidyformechanicdevelopmentofPenglaiDaliuhangBase | 90,408 | - | (34,691) | 55,717 | Governmentgrantsrelatedtoassets |
| Specialfundsforcellarmaintenance | 2,079,711 | - | (2,079,711) | - | Governmentgrantsrelatedtoassets |
| Engineeringtechnologytransformationofinformationsystemproject | 580,000 | - | (580,000) | - | Governmentgrantsrelatedtoassets |
| LeisureagriculturesubsidiesfromJugezhuanggovernment | - | 250,000 | (50,000) | 200,000 | Relatedtoincome |
| SpecialFundsforInnovation-DrivenDevelopmentofYantaiCity | 172,406 | - | (172,406) | - | Relatedtoincome |
| PrizefromIndustrialDesignCompetitionofYantaiMayor’sCup | 35,000 | - | (35,000) | - | Relatedtoincome |
| Total | 38,389,058 | 4,000,000 | (9,806,324) | 32,582,734 |
32Sharecapital
Balanceatthebeginningofthe
year
| Balanceatthebeginningoftheyear | Changesduringtheyear | Balanceattheendoftheyear | |
| Issuanceofnewshares | |||
| UnrestrictedRMBordinaryshares | 453,460,800 | - | 453,460,800 |
| RestrictedRMBordinaryshares(Note) | - | 6,785,559 | 6,785,559 |
| Foreignshareslisteddomestically | 232,003,200 | - | 232,003,200 |
| Totalshares | 685,464,000 | 6,785,559 | 692,249,559 |
Note:TheProposalontheCompany’s2023RestrictedShareIncentivePlan(Draft)and
RelevantSummaryandtheProposalontheRequestfortheAuthorisationtotheBoardofDirectorsbytheGeneralMeetingsofShareholderstoHandleMattersrelatedtotheCompany’s2023RestrictedShareIncentivePlanwerepassedbyresolutionsintheGroup’s2022GeneralMeetingsofShareholdersheldon26May2023.Inaddition,theProposalontheAdjustmentstoMattersrelatedto2023RestrictedShareIncentivePlanandtheProposalontheGrantingofRestrictedSharestoIncentiveObjectsunderthe2023RestrictedShareIncentivePlanwerereviewedandpassedinthe2023firstextraordinaryBoardmeetingheldon26June2023(hereinafterreferredtoasthe“RestrictedShareIncentivePlan”,seeNoteXIIIfordetails).TheGroupdeterminedtogrant6,850,000restrictedsharesto204incentiveobjectsatagrantpriceofRMB15.24pershareon26June2023(thegrantdate).Atotalof203incentiveobjectsoftheGroupactuallysubscribedfor6,785,559restrictedsharesatagrantpriceofRMB15.24pershare.ThetransactionincreasedtheCompany’sregisteredcapitalbyRMB6,785,559,increasedthecapitalreservebyRMB96,626,360andrecognisedtherepurchaseobligationonrestrictedsharesofRMB103,411,919.33Capitalreserve
| Items | Note | 31December2022 | Additionsduringtheyear | Decreaseduringtheyear | 31December2023 |
| Sharepremium | (1) | 519,052,172 | 96,626,360 | - | 615,678,532 |
| Others | (2) | 5,916,588 | 30,735,755 | (1,244,168) | 35,408,175 |
| Total | ? | 524,968,760 | 127,362,115 | (1,244,168) | 651,086,707 |
(1)Duringthereportingperiod,theGroup’sissuanceofrestrictedsharesinconnectionwith
theimplementationoftheRestrictedSharePlanresultedinanincreaseinsharepremiumofRMB96,626,360,seeNoteV.32fordetails.
(2)Duringthereportingperiod,theGroup’srecognitionofamortisationexpensesin
connectionwiththeimplementationoftheRestrictedSharePlanresultedinanincreaseincapitalreserveofRMB30,735,755.
AsaresultoftheCompany’sacquisitionofnon-controllinginterestsinLiaoningChangyuIceWineChateauCo.,Ltd.,thedifferencebetweenthelong-termequityinvestmentacquiredandtheshareofnetassetscontinuouslycalculatedsincetheacquisitiondatebythesubsidiarybasedontheproportionofnewlyincreasedshareholdingwasrecognisedincapitalreserve,resultinginadecreaseincapitalreservebyRMB1,244,168,seeNoteVIII.2fordetails.
34Treasuryshares
Item
| Item | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Balanceattheendoftheyear |
| Treasuryshares | - | 103,411,919 | - | 103,411,919 |
| Total | - | 103,411,919 | - | 103,411,919 |
TheincreaseintreasurysharesduringthereportingperiodwasduetotherepurchaseobligationofRMB103,411,919arisingfromthegrantingofrestrictedsharestoincentiveobjectsinconnectionwiththeimplementationoftheRestrictedSharePlan,seeNoteV.32fordetails.35Othercomprehensiveincome
| Item | BalanceatthebeginningoftheyearattributabletoshareholdersoftheCompany | Accruedduringtheyear | BalanceattheendoftheyearattributabletoshareholdersoftheCompany | ||||
| Before-taxamount | Less:Previouslyrecognisedamounttransferredtoprofitorloss | Less:Incometaxexpenses | Net-of-taxamountattributabletoshareholdersoftheCompany | Net-of-taxamountattributabletonon-controllinginterests | |||
| Itemsthatmaybereclassifiedtoprofitorloss | |||||||
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | (23,760,238) | 9,519,495 | - | - | 8,975,561 | 543,934 | (14,784,677) |
36Surplusreserve
| Item | 31December2023 | 31December2022 |
| Statutorysurplusreserve | 342,732,000 | 342,732,000 |
InaccordancewiththeCompanyLawandtheArticlesofAssociationCompany,theCompanyappropriated10%ofitsnetprofittostatutorysurplusreserve.Theappropriationtothestatutorysurplusreservemaybeceasedwhentheaccumulatedappropriationreachesover50%oftheregisteredcapitaloftheCompany.TheCompanydoesnotappropriatenetprofittothesurplusreservein2023assurplusreserveoftheCompanyisabove50%oftheregisteredcapital.TheCompanycanappropriatediscretionarysurplusreserveafterappropriationofthestatutorysurplusreserve.Discretionarysurplusreservecanbeutilisedtooffsetthedeficitorincreasethesharecapitalafterapproval.
37Retainedearnings
Item
| Item | Note | 2023 | 2022 |
| Retainedearningsatthebeginningoftheyear | 9,049,649,211 | 8,929,426,600 | |
| Add:NetprofitsfortheyearattributabletoshareholdersoftheCompany | 532,438,907 | 428,681,411 | |
| Less:Dividendstoordinaryshares | (1) | (308,458,800) | (308,458,800) |
| Retainedearningsattheendoftheyear | (2) | 9,273,629,318 | 9,049,649,211 |
(1)Dividendsinrespectofordinarysharesdeclaredduringtheyear
Pursuanttotheshareholders’approvalattheshareholders’generalmeetingon26May2023,theCompanypaidcashdividendstoshareholdersonJune16,2023andJune21,2023,acashdividendofRMB0.45pershare(2022:RMB0.45pershare),totallingRMB308,458,800(2022：RMB308,458,800).
(2)Retainedearningsattheendoftheyear
Asat31December2023,theconsolidatedretainedearningsattributabletotheCompanyincludedanappropriationofRMB55,900,659(2022:RMB58,180,889)tosurplusreservemadebythesubsidiaries.38Operatingincomeandoperatingcosts
| Item | 2023 | 2022 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 4,309,556,631 | 1,754,792,956 | 3,860,311,318 | 1,651,154,424 |
| Otheroperatingactivities | 75,207,704 | 32,190,701 | 58,629,842 | 29,640,308 |
| Total | 4,384,764,335 | 1,786,983,657 | 3,918,941,160 | 1,680,794,732 |
| Including:Revenuefromcontractswithcustomers | 4,380,255,840 | 1,783,149,498 | 3,916,599,934 | 1,679,459,968 |
| Rentincome | 4,508,495 | 3,834,159 | 2,341,226 | 1,334,764 |
(1)Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2023 | 2022 |
| Bytypeofgoodsorservices | ||
| -Liquor | 4,309,556,631 | 3,860,311,318 |
| -Others | 70,699,209 | 56,288,616 |
| Bytimingoftransferringgoodsorservices | ? | |
| -Revenuerecognisedatapointintime | 4,380,255,840 | 3,916,599,934 |
(2)Geographicalregionsofoperatingincomeandoperatingcosts：
| Typeofcontract | 2023 | 2022 | ||
| Income | Cost | Income | Cost | |
| Bygeographicalregions | ||||
| -China | 3,761,534,793 | 1,378,286,484 | 3,320,757,555 | 1,283,478,621 |
| -Othercountriesandregions | 623,229,542 | 408,697,173 | 598,183,605 | 397,316,111 |
| Total | 4,384,764,335 | 1,786,983,657 | 3,918,941,160 | 1,680,794,732 |
39Taxesandsurcharges
Item
| Item | 2023 | 2022 |
| Consumptiontax | 239,887,676 | 198,284,289 |
| Urbanmaintenanceandconstructiontax | 35,197,172 | 28,067,931 |
| Educationsurcharges | 23,177,137 | 19,554,864 |
| Propertytax | 34,003,219 | 28,150,521 |
| Taxontheuseofurbanland | 10,331,175 | 11,403,394 |
| Stampduty | 5,289,257 | 3,230,856 |
| Others | 1,849,935 | 964,772 |
| Total | 349,735,571 | 289,656,627 |
40Sellinganddistributionexpenses
| Item | 2023 | 2022 |
| Marketingfee | 490,535,793 | 322,593,973 |
| Salariesandbenefits | 290,154,434 | 282,395,182 |
| Labourservicefee | 93,243,814 | 108,784,934 |
| Advertisingfee | 75,527,637 | 75,862,425 |
| Depreciationexpense | 48,882,915 | 47,509,217 |
| Designandproductionfee | 32,182,656 | 30,594,519 |
| Travellingexpenses | 29,318,913 | 23,759,493 |
| Trademarksexpenses | 27,515,798 | 21,877,171 |
| Storagerental | 27,290,488 | 25,572,282 |
| Restrictedshareincentiveplanfee | 22,929,489 | - |
| Conferencefee | 19,309,557 | 8,735,659 |
| Water,electricityandgasfee | 16,830,073 | 16,438,410 |
| Others | 66,061,209 | 64,842,873 |
| Total | 1,239,782,776 | 1,028,966,138 |
41Generalandadministrativeexpenses
| Item | 2023 | 2022 |
| Salariesandbenefits | 80,051,089 | 73,824,670 |
| Depreciationexpenses | 89,486,538 | 85,366,361 |
| Repaircosts | 11,978,855 | 11,853,538 |
| Administrativeexpenses | 19,929,523 | 23,586,680 |
| Amortisationofgreeningfee | 17,409,398 | 17,846,265 |
| Amortisationexpenses | 16,202,523 | 18,057,909 |
| Safetyproductioncosts | 10,743,063 | 11,539,602 |
| Securityandcleaningfee | 8,326,301 | 8,530,050 |
| Restrictedshareincentiveplanfee | 7,806,266 | - |
| Contractingfee | 4,337,738 | 4,309,290 |
| Others | 37,719,564 | 32,691,166 |
| Total | 303,990,858 | 287,605,531 |
42Financialexpenses
Item
| Item | 2023 | 2022 |
| Interestexpensesfromloansandpayables | 31,297,810 | 22,174,501 |
| Interestexpensesfromleaseliabilities | 4,502,287 | 4,682,389 |
| Interestincomefromdeposits | (30,571,465) | (24,186,351) |
| Exchangelosses | 5,002,117 | 3,301,716 |
| Otherfinancialexpenses | 852,710 | 1,283,952 |
| Total | 11,083,459 | 7,256,207 |
43Otherincome
| Item | 2023 | 2022 | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 4,100,000 | 4,100,000 | Governmentgrantsrelatedtoassets |
| Specialfundsforthemaintenanceofwinecellars | 2,079,711 | - | Governmentgrantsrelatedtoassets |
| XinjiangIndustrialRevitalizationandTechnologicalTransformationProject | 1,422,000 | 1,422,000 | Governmentgrantsrelatedtoassets |
| Subsidiesforretainingwall | 638,000 | - | Governmentgrantsrelatedtoassets |
| Engineeringtechnologytransformationofinformationsystemproject | 580,000 | - | Governmentgrantsrelatedtoassets |
| Wineproductioncapacityconstructionproject | 400,000 | 400,000 | Governmentgrantsrelatedtoassets |
| Specialsubsidiesforinfrastructuresupport | - | 1,060,000 | Governmentgrantsrelatedtoasse |
| Others-Governmentgrantsrelatedtoassets | 329,207 | 2,152,842 | Governmentgrantsrelatedtoassets |
| Taxrebates | 19,533,196 | 7,592,342 | Relatedtoincome |
| Specialfundsforthedevelopmentofenterprises | 9,237,716 | 8,380,737 | Relatedtoincome |
| WineIndustryDevelopmentProject | 2,684,281 | 2,773,000 | Relatedtoincome |
| TalentdevelopmentfundsfromShihezigovernment | 1,500,000 | - | Relatedtoincome |
| Fundsforruralrevitalisation,technologicalinnovationandenhancementactionplan | 1,170,000 | - | Relatedtoincome |
| Fundsfortheintegrationdevelopmentprojectofagriculturalindustry | 1,000,000 | - | Relatedtoincome |
| Others-Governmentgrantsrelatedtoincome | 6,849,688 | 5,264,519 | Relatedtoincome |
| Total | 51,523,799 | 33,145,440 |
Otherincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
44Investmentincome/(losses)
Investmentlossesbyitems
Item
| Item | NOTE | 2023 | 2022 |
| Long-termequityinvestmentlossesunderequitymethod | (712,480) | (1,605,469) | |
| Investmentprofit/(loss)arisingfromdisposalofsubsidiariesandlong-termequityinvestments | VII.2 | 24,559,930 | (1,842,325) |
| Total | 23,847,450 | (3,447,794) |
45Creditreversal
| Item | 2023 | 2022 |
| Accountsreceivable | 1,397,658 | 4,752,797 |
| Total | 1,397,658 | 4,752,797 |
46Impairmentlosses
| Item | 2023 | 2022 |
| Fixedassets | 10,363,383 | - |
| Inventories | 3,143,575 | 578,745 |
| Goodwill | - | 5,210,925 |
| Total | 13,506,958 | 5,789,670 |
47Lossfromassetdisposals
| Item | 2023 | 2022 |
| Lossfromdisposaloffixedassets | 134,133 | 16,191,903 |
Lossfromdisposalofassetsduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.48Non-operatingincomeandnon-operatingexpenses
(1)Non-operatingincomebyitemisasfollows:
| Item | 2023 | 2022 |
| Netincomefromfine | 9,325,229 | 566,334 |
| Insurancecompensation | 452,242 | 3,038,560 |
| Others | 2,214,799 | 3,227,915 |
| Total | 11,992,270 | 6,832,809 |
Non-operatingincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
(2)Non-operatingexpenses
Item
| Item | 2023 | 2022 |
| Donationsprovided | 1,212,015 | 693,625 |
| Lossesfromscrappingofpackagingmaterials | 1,137,256 | - |
| Lossesfromdisposalofnon-currentassets | 573,560 | 867,796 |
| Compensation,penaltyandfineexpenses | 80,403 | 723,161 |
| Others | 425,176 | 665,409 |
| Total | 3,428,410 | 2,949,991 |
Non-operatingexpensesduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.49Incometaxexpenses
| Item | Note | 2023 | 2022 |
| Currenttaxexpensefortheyearbasedontaxlawandregulations | 216,588,992 | 176,922,552 | |
| Changesindeferredtaxassets/liabilities | (1) | 4,844,455 | 17,311,037 |
| Total | 221,433,447 | 194,233,589 |
(1)Theanalysisofchangesindeferredtaxissetoutbelow:
| Item | 2023 | 2022 |
| Originationoftemporarydifferences | 4,844,455 | 17,311,037 |
| Total | 4,844,455 | 17,311,037 |
(2)Reconciliationbetweenincometaxexpensesandaccountingprofit:
| Item | 2023 | 2022 |
| Profitbeforetaxation | 747,466,156 | 625,582,303 |
| Estimatedincometaxat25% | 186,866,539 | 156,395,576 |
| Effectofdifferenttaxratesappliedbysubsidiaries | 2,070,828 | 3,875,636 |
| Effectofnon-deductiblecosts,expenseandlosses | 4,978,035 | 6,207,982 |
| Effectofdeductiblelossesofdeferredtaxassetsnotrecognisedfortheyear | 25,756,996 | 26,681,652 |
| Deferredtaxassetswritten-off | 1,761,049 | 1,072,743 |
| Incometaxexpenses | 221,433,447 | 194,233,589 |
50Basicearningspershareanddilutedearningspershare
(1)Basicearningspershare
BasicearningspershareiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
2023
| 2023 | 2022 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 532,438,907 | 428,681,411 |
| Weightedaveragenumberofordinarysharesoutstanding | 685,464,000 | 685,464,000 |
| Basicearningspershare(RMB/share) | 0.78 | 0.63 |
Weightedaveragenumberofordinarysharesiscalculatedasfollows:
| 2023 | 2022 | |
| Issuedordinarysharesatthebeginningoftheyear | 685,464,000 | 685,464,000 |
| Weightedaveragenumberofordinarysharesattheendoftheyear | 685,464,000 | 685,464,000 |
(2)Dilutedearningspershare
DilutedearningspershareiscalculatedbydividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding(diluted):
| ? | Note | 2023 | 2022 |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany(Dilute) | (a) | 532,438,907 | 428,681,411 |
| Weightedaveragenumberofordinarysharesoutstanding(Dilute) | (b) | 685,670,893 | 685,464,000 |
| Dilutedearningspershare(RMB/share) | 0.78 | 0.63 |
(a)ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany(diluted)is
calculatedasfollows:
| 2023 | 2022 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 532,438,907 | 428,681,411 |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany(diluted) | 532,438,907 | 428,681,411 |
(b)TheweightedaveragenumberoftheCompany’sordinaryshares(diluted)iscalculated
asfollows:
?
| ? | 2023 | 2022 |
| Weightedaveragenumberofordinarysharesat31December | 685,464,000 | 685,464,000 |
| Dilutedadjustments: | ||
| Effectsofrestrictedshares | 206,893 | - |
| Weightedaveragenumberofordinaryshares(diluted)attheendoftheyear | 685,670,893 | 685,464,000 |
51Cashflowstatement
(1)Cashrelatingtooperatingactivities
a.Proceedsrelatingtootheroperatingactivities:
| Item | 2023 | 2022 |
| Recoveryofprioryears’trademarksrightreceivables(NoteV.8) | 120,930,641 | - |
| Governmentgrants | 45,677,242? | 30,239,160 |
| Penaltyincome | 9,325,229? | 566,334 |
| Interestincomefrombank | 27,375,399? | 22,845,833 |
| Others | 16,077,111? | 8,174,080 |
| Total | 219,385,622? | 61,825,407 |
b.Paymentsrelatingtootheroperatingactivities:
| Item | 2023 | 2022 |
| Sellinganddistributionexpenses | 539,874,320? | 443,486,326 |
| Generalandadministrativeexpenses | 99,254,521? | 92,510,326 |
| Others | 36,569,908 | 46,253,149 |
| Total | 675,698,749? | 582,249,801 |
(2)Cashrelatingtoinvestingactivities
a.Proceedsrelatingtosignificantinvestingactivities:
| Item | 2023 | 2022 |
| Recoveryoffixeddeposits | 238,200,000 | 133,200,000 |
b.Paymentsrelatingtosignificantinvestingactivities:
| Item | 2023 | 2022 |
| Investmentsinfixeddeposits | 464,200,000 | 108,200,000 |
| Acquisitionoffixedassetsandconstructioninprogress | 110,067,855 | 182,207,269 |
(3)Cashrelatingtofinancingactivitiesa.Proceedsrelatingtootherfinancingactivities:
Item
| Item | 2023 | 2022 |
| Paymentofcapitalreduction | 20,674,509 | - |
| Acquisitionofnon-controllinginterests | 14,623,400 | - |
| Cashpaidforlease | 31,931,214? | 19,774,744 |
| Total | 67,229,123? | 19,774,744 |
b.Changesinliabilitiesarisingfromfinancingactivities
| Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreasesduringtheyear | Balanceattheendoftheyear | |||
| Cash | Non-cash | Cash | Non-cash | |||
| Short-termloan | 389,378,480 | 557,308,654 | - | (581,705,689) | - | 364,981,445 |
| Long-termloan | 128,112,115 | 16,550,853 | - | (75,199,936) | (2,846,589) | 66,616,443 |
| Leaseliabilities | 109,505,093 | - | 3,966,353 | (8,182,353) | (20,250,758) | 85,038,335 |
| Long-termaccountspayable | 42,000,000 | - | - | (42,000,000) | - | - |
| Non-currentliabilitiesduewithinoneyear | 144,020,834 | - | 23,097,347 | (88,594,188) | - | 78,523,993 |
| Otheraccountspayable-dividendspayable | 70,317 | - | 309,997,116 | (310,067,433) | - | - |
| Otheraccountspayable-interestpayable | 88,889 | - | 35,800,097 | (35,888,986) | - | - |
| Otheraccountspayable-payablesforequities | - | - | 29,246,777 | (14,623,400) | - | 14,623,377 |
| Otheraccountspayable-payablesforrepurchaseoftreasuryshares | - | 103,411,919 | - | - | - | 103,411,919 |
| Otheraccountspayable-Investmentsreturnedtominorityshareholders | - | - | 20,674,509 | (20,674,509) | - | - |
| Total | 813,175,728 | 677,271,426 | 422,782,199 | (1,176,936,494) | (23,097,347) | 713,195,512 |
52Supplementaryinformationoncashflowstatement
(1)Supplementtocashflowstatement
a.Reconciliationofnetprofittocashflowsfromoperatingactivities:
Item
| Item | 2023 | 2022 |
| Netprofit | 526,032,709 | 431,348,714 |
| Add:Credit/assetimpairmentlosses | 12,109,300 | 1,036,873 |
| Depreciationoffixedassetsandinvestmentproperty | 317,061,135 | 314,038,019 |
| Amortisationofintangibleassets | 16,932,862 | 25,766,271 |
| Amortisationoflong-termdeferredexpenses | 18,514,442 | 19,340,746 |
| Amortisationofbiologicalassets | 13,800,290 | 14,911,694 |
| DepreciationofROUassets | 22,107,603 | 22,131,592 |
| Lossesfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 707,693 | 17,059,699 |
| Financialexpenses | 32,287,868 | 25,170,658 |
| Equityincentiveexpenses | 30,735,755 | - |
| Investment(profits)/losses | (23,847,450) | 3,447,794 |
| Decreaseindeferredtaxassets | 5,174,683 | 17,848,075 |
| Decreaseindeferredtaxliabilities | (330,228) | (537,038) |
| Decrease/(increase)ingrossinventories | 131,877,015 | (101,354,740) |
| (Increase)/decreaseinoperatingreceivables | (54,231,481) | 187,564,569 |
| Increase/(decrease)iecreaseinoperatingpayables | 124,159,547 | (108,896,279) |
| Netcashflowsfromoperatingactivities | 1,173,091,743 | 868,876,647 |
b.Significantinvestingandfinancingactivitiesnotrequiringtheuseofcash:
| Item | 2023 | 2022 |
| Paymentofconstructioninprogressandotherlong-termassetsbybankacceptances | 13,226,592 | 40,584,152 |
c.Changeincashandcashequivalents:
| Item | 2023 | 2022 |
| Cashequivalentsattheendoftheyear | 1,963,155,752 | 1,612,753,600 |
| Less:Cashequivalentsatthebeginningoftheyear | 1,612,753,600 | 1,502,327,029 |
| Netincreaseincashandcashequivalents | 350,402,152 | 110,426,571 |
(2)Informationonacquisitionordisposalofsubsidiariesandotherbusinessunitsduringthe
currentyear:
InformationonacquisitionofWEIMISSSHANGHAI:
2023
| 2023 | |
| Considerationforacquisitions | 5,537,700 |
| Cashorcashequivalentspaidduringtheyearforacquiringsubsidiariesandotherbusinessunitsduringtheyear | 5,537,700 |
| Less:Cashandcashequivalentsheldbyacquiredsubsidiariesandotherbusinessunits | 6,194,749 |
| Netcashreceivedfortheacquisition | 657,049 |
Fornon-cashassetsandliabilitiesheldbytheacquiredsubsidiariesandotherbusinessunits,refertoNoteVII.1.Informationondisposalofsubsidiariesandotherbusinessunits:
| XinjingTianzhu | LangfangCastel | |
| Considerationfordisposals | 12,090,000 | 10,921,494 |
| Cashorcashequivalentsreceivedduringtheyearfordisposingofsubsidiariesandotherbusinessunitsduringtheyear | 12,090,000 | 10,921,494 |
| Less:Cashandcashequivalentsheldbydisposedsubsidiariesandotherbusinessunits | 2,451,415 | 251,454 |
| Netcashreceivedfordisposingofsubsidiariesandotherbusinessunits | 9,638,585 | 10,670,040 |
| Non-cashassetsandliabilitiesheldbydisposedsubsidiariesandotherbusinessunits | ||
| -Currentassets | 603,781 | 3,977,024 |
| -Non-currentassets | 22,865,411 | 9,507,310 |
| -Currentliabilities | 23,819 | 1,039,979 |
| -Non-currentliabilities | 2,216,975 | - |
(3)Detailsofcashandcashequivalents
| Item | 2023 | 2022 |
| Cashatbankandonhand | ||
| Including:Cashonhand | 74,951 | 47,954 |
| Bankdepositsavailableondemand | 1,963,080,801 | 1,612,705,646 |
| Closingbalanceofcashandcashequivalents | 1,963,155,752 | 1,612,753,600 |
53Assetswithrestrictiveownershiptitleorrightofuse
Item
| Item | Openingbalance | Balanceattheendoftheyear | Reasonforrestriction |
| Cashatbankandonhand | 10,500,515 | 337,895 | TheCompanydepositsforlettersofcreditetc. |
| Accountreceivable(i) | 59,982,807 | 73,628,265 | Short-termborrowingsmortgagefromAtrio |
| Fixedassets | 303,897,124 | 37,985,117 | Short-termborrowingsfromDicot |
| Intangibleassets | 169,385,254 | - | R&DCentremortgageforlong-termpayables |
| Total | 543,765,700 | 111,951,277 |
(i)Asat31December2023,theamountofaccountsreceivablewithrestrictedownership
isEUR9,368,417,equivalentofRMB73,628,265hichreferstoaccountsreceivableAtrioconductedforfactoringfromBancodeSabadell,S.A.Etc.(31December2022:
EUR8,080,778,equivalentofRMB59,982,807).54Leases
(1)Asalessee
| Item | 2023 | 2022 |
| Short-termleaseexpensesforwhichthepracticalexpedienthasbeenapplied | 527,463 | 122,097 |
| Totalcashoutflowforleases | 32,458,677? | 19,896,841 |
TheGroupleasesbuildingsandmotorvehicleswiththeleasetermsof1yearorless,andalloftheseleasesareshort-termleases.TheGrouphaselectednottorecogniseright-of-useassetsandleaseliabilitiesfortheseleases.
(2)Asalessor
| Item | 2023 | 2022 |
| Leaseincome | 4,508,495 | 2,341,226 |
TheGroupleasedoutsomemachineriesin2022and2023withaleasetermwithin1
year.TheGrouphasclassifiedtheseleasesasoperatingleases,becausetheydonot
transfersubstantiallyalloftherisksandrewardsincidentaltotheownershipofthe
assets.
VI.Researchanddevelopmentexpenses
Presentationbynature
Item
| Item | 2023 | 2022 |
| Salaries | 6,564,884 | 7,171,522 |
| Diagnostictestfees | 3,448,000 | 1,819,699 |
| Consultancyfee | 3,039,519 | 1,476,996 |
| Materialconsumption | 2,212,169 | 995,281 |
| Others | 2,148,962 | 3,967,812 |
| Total | 17,413,534 | 15,431,310 |
| Including:researchanddevelopmentexpendituresthatareexpensed | 17,413,534 | 15,431,310 |
VII.Changeofconsolidationscope1Businesscombinationsinvolvingentitiesnotundercommoncontrol
(1)Businesscombinationsinvolvingentitiesnotundercommoncontroloccurredduringtheyear
Acquisitiondateofequityinvestment
| Acquisitiondateofequityinvestment | Costofequityinvestment | Shareholdingacquired(%) | Acquisitionmethod | Acquisitiondate | Basisofacquisitiondatedetermination | Acquireefromacquisitiondateto31December2023 | |||
| Income | Netprofit | Netcashoutflow | |||||||
| WeimissShanghai | 01/31/2023 | 5,537,700 | 70% | Equitytransfer | 01/31/2023 | Transferofcontrols | 1,673,699 | 225,842 | 90,627 |
WeimissShanghaiisacompanyregisteredinShanghaion20August2020andisengagedinBeijingWanfeng.TheCompanyheld30%oftheequityandBeijingWanfengTradingCo.,Ltd.held70%oftheequityatthetimeofincorporation.Thisentityismainlyengagedinthewineandfoodoperations.AccordingtotheEquityTransferContractsignedbytheCompanyandBeijingWanfengin2023,BeijingWanfengtransferredits70%equityinWeimissShanghaitotheCompanyatapriceofRMB5,537,700,andWeimissShanghaibecomesawholly-ownedsubsidiaryoftheCompanyuponthecompletionofthistransaction.TherelatedtransactionwascompletedinJanuary2023.
(2)Acquisitioncostandgoodwill
Acquisitioncost
| Acquisitioncost | WeimissShanghai | |
| Carryingamount | Fairvalue | |
| Cash | 5,537,700 | 5,537,700 |
| Equityinterestsheldbeforeacquisitiondate | 2,373,285 | 2,373,285 |
| Totalacquisitioncost | 7,910,985 | 7,910,985 |
| Less:Shareofthefairvalueoftheidentifiablenetassetsacquired | 7,910,985 | 7,910,985 |
| Goodwill | - | - |
(3)Identifiableassetsandliabilitiesoftheacquireeattheacquisitiondate
| WeimeisiShnghai | ||
| Fairvalue | Carryingamount | |
| Assets | ||
| Cashatbankandonhand | 6,194,749 | 6,194,749 |
| Receivables | 1,394 | 1,394 |
| Prepayments | 22,463 | 22,463 |
| Otherreceivables | 216,388 | 216,388 |
| Inventories | 1,356,577 | 1,356,577 |
| Othercurrentassets | 124,024 | 124,024 |
| Liabilities | ||
| AccountsReceivedinAdvance | 35 | 35 |
| Payroll | 3,000 | 3,000 |
| Otherpayables | 1,575 | 1,575 |
| Netassets | 7,910,985 | 7,910,985 |
| Less:Non-controllinginterests | - | - |
| Netassetsacquired | 7,910,985 | 7,910,985 |
2Disposalofsubsidiaries
(1)Transactionsoreventsresultinginlossofcontroloversubsidiaries
Entityname
| Entityname | Dateoflosingcontrol | Considerationonthedateoflosingcontrol | Shareholdingbeingdisposedonthedateoflosingcontrol(%) | Disposalmethodonthedateoflosingcontrol | Basisfordeterminingdateoflosingcontrol | Differencebetweenconsiderationreceivedandtherelatedshareofnetassetsinconsolidatedfinancialstatements | Proportionofremainingshareholdingonthedateoflosingcontrol | Investmentincomeorloss/retainedearningstransferredfromothercomprehensiveincomerelatedtopreviousequityinvestmentsinsubsidiaries |
| XinjiangTianzhuWineCo.,Ltd. | 30/06/2023 | 12,090,000 | 60% | Equitytransfer | Transferofcontrols | 17,003,530 | - | - |
| LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd. | 20/12/2023 | 10,921,494 | 49% | Equitytransfer | Transferofcontrols | 7,556,400 | - | - |
(2)Otherreasonsforchangeofconsolidationscope
TheGroup’ssubsidiaries-Changyu(Jingyang)WineSalesCo.,Ltd.andLangfangChangyuPioneerWineSalesCo.,Ltd.werecancelledin2023.
VIII.Interestsinotherentities1Interestsinsubsidiaries
(1)CompositionoftheGroup
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| EtablissementsRoulletFransac(“RoulletFransac”) | Cognac,France | Cognac,France | Trading | EUR2,900,000 | - | 100 | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| DicotPartners,S.L(“Dicot”) | Navarre,Spain | Navarre,Spain | Marketingandsales | EUR2,000,000 | 90 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| Vi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSpA..(“ChileIndomitaWineGroup”) | Santiago,Chile | Santiago,Chile | Marketingandsales | CLP31,100,000,000 | 85 | - | Acquiredthroughestablishmentorinvestment |
| KilikanoonEstatePtyLtd.(“AustraliaKilikanoonEstate”) | Adelaide,Australia | Adelaide,Australia | Marketingandsales | AUD6,420,000 | 97.5 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| BeijingChangyuSalesandDistributionCo.,Ltd.(“BeijingSales”) | Beijing,China | Beijing,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiKylinPackagingCo.,Ltd.(“KylinPackaging”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB15,410,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChateauChangyu-CastelCo.,Ltd.(“ChateauChangyu”)(a) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | USD5,000,000 | 70 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(Jingyang)WineCo.,Ltd.(“JingyangWine”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB1,000,000 | 90 | 10 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuPioneerWineSalesCo.,Ltd.(“SalesCompany”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB8,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuSalesandDistributionCo.,Ltd.(“ShanghaiSales”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| BeijingChangyuAFIPAgriculturedevelopmentCo.,Ltd.(“AgricultureDevelopment”) | Miyun,Beijing,China | Miyun,Beijing,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd.(“AFIP”)(b) | Beijing,China | Beijing,China | Manufacturing | RMB642,750,000 | 91.53 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| YantaiChangyuWineSalesCo.,Ltd.(“WinesSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 90 | 10 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuPioneerInternationalCo.,Ltd.(“PioneerInternational”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 70 | 30 | Acquiredthroughestablishmentorinvestment |
| HangzhouChangyuWineSalesCo.,Ltd.(“HangzhouChangyu”) | Hangzhou,Zhejiang,China | Hangzhou,Zhejiang,China | Marketingandsales | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”) | Yinchuan,Ningxia,China | Ningxia,China | Plating | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| HuanrenChangyuNationalWinesSalesCo.,Ltd.(“NationalWines”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Marketingandsales | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd.(“GoldenIcewineValley”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Manufacturing | RMB59,687,300 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiDevelopmentZoneChangyuTradingCo.,Ltd.(“DevelopmentZoneTrading”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingAFIPMeetingCenter(“MeetingCenter”) | Miyun,Beijing,China | Miyun,Beijing,China | Services | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingAFIPTourismandCulture(“AFIPTourism”) | Miyun,Beijing,China | Miyun,Beijing,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”) | Ningxia,China | Ningxia,China | Manufacturing | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuChateauTinlotCo.,Ltd.(“ChateauTinlot”) | Yantai,Shandong,China | Yantai,Shandong,China | Wholesaleandretail | RMB400,000,000 | 65 | 35 | Acquiredthroughestablishmentorinvestment |
| XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | RMB550,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| NingxiaChateauChangyuMoserXVCo.,Ltd.(“ChateauNingxia”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Manufacturing | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShaanxiChateauChangyuRenaCo.,Ltd.(“ChateauChangan”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB20,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”)(c) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB500,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(HuanRen)WineCo.,Ltd.(“HuanRenWine”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Wineproductionprojecting | RMB5,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| XinjiangChangyuSalesCo.,Ltd.(“XinjiangSales”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Marketingandsales | RMB10,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| NingxiaChangyuTradingCo.,Ltd.(“NingxiaTrading”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| ShaanxiChangyuRenaWineSalesCo.,Ltd.(“ShaanxiSales”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Marketingandsales | RMB3,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| PenglaiChangyuWineSalesCo.,Ltd.(“PenglaiSales”) | Penglai,Shandong,China | Penglai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| LaizhouChangyuWineSalesCo.,Ltd.(“LaizhouSales”) | Laizhou,Shandong,China | Laizhou,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| FrancsChampsParticipationsSAS(“FrancsChamps”) | Cognac,France | Cognac,France | Investmentandtrading | EUR32,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiRoulletFransacWineSalesCo.,Ltd.(“YantaiRoulletFransac”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineSalesCo.,Ltd.(“WineSalesCompany”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShaanxiChateauChangyuRenaTourismCo.,Ltd.(“ChateauTourism”) | Xianxin,Shaanxi,China | Xianxin,Shaanxi,China | Tourism | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| LongkouChangyuWineSalesCo.,Ltd.(“LongkouSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuCulturalTourismDevelopmentCo.,Ltd.(“CultureDevelopment“) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineCultureMuseumCo.,Ltd.(“Museum”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuCultureTourismProductionSalesCo.,Ltd.(“CultureSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuInternationalWindowoftheWineCityCo.,Ltd.(“WindowoftheWineCity”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB60,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiKOYABrandyChateauCo.,Ltd.(“ChateauKOYA”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(Shanghai)InternationalDigitalMarketingCenterLimited(“DigitalMarketing”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB50,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuGuoquDigitalTechnologyCo.,Ltd.(“ShanghaiGuoqu”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB6,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| TianjinChangyuYixinDigitalTechnologyCo.,Ltd.(“TianjinYixin”) | Tianjin,China | Tianjin,China | Marketingandsales | RMB10,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuYixinDigitalTechnologyCo.,Ltd.(“ShanghaiYixin”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB10,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| YantaiCreightonCateringCompanyLimited(“CreightonCatering”) | Yantai,Shandong,China | Yantai,Shandong,China | Services | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| WeimeisiShanghai | Shanghai,China | Shanghai,China | Marketingandsales | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
Reasonsfortheinconsistencybetweentheproportionofshareholdingsinasubsidiaryandtheproportionofvotingrights:
(a)ChateauChangyuisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,accountingfor70%ofChangyu
Chateau’sequityinterest.Throughagreementarrangement,theCompanyhasthefullpowertocontrolChangyuChateau’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementisterminatedon31December2027.(b)AFIPisalimitedliabilitycompanyestablishedbyYantaiDeanandBeijingQinglang.Aftertheequitychange,theCompanyholds91.53%
ofitsequity.Throughagreementarrangement,theCompanyhasthefullpowertocontrolAFIP’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon2September2024.(c)R&DCentrewasajointventureestablishedbytheCompanyandCADF,atDecember31,2023theCompanyheld100%ofits
equity.ThroughagreementarrangementinNoteV.30,theCompanyhasthefullpowertocontrolR&DCentre’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon28February2025.TheR&DCentresettledallCADFborrowingsearlyandcompletedthechangeofbusinesslicenseon28December2023.
(2)Materialnon-whollyownedsubsidiaries
| NameoftheSubsidiary | Proportionofownershipinterestheldbynon-controllinginterests | Comprehensiveincomeattributabletonon-controllinginterestsfortheyear | Dividenddeclaredtonon-controllingshareholdersduringtheyear | Balanceofnon-controllinginterestsattheendoftheyear |
| AFIP | 8.47% | - | - | 56,409,393 |
| IWCC | 15% | 1,248,415 | 1,151,483 | 57,361,438 |
(3)Keyfinancialinformationaboutmaterialnon-whollyownedsubsidiaries
Thefollowingtablesetsoutthekeyfinancialinformationoftheabovesubsidiarieswithoutoffsettinginternaltransactions,butwithadjustmentsmadeforthefairvalueadjustmentattheacquisitiondateandanydifferencesinaccountingpolicies:
AFIP
| AFIP | ChileIndomitaWineGroup | |||
| 2023 | 2022 | 2023 | 2022 | |
| Currentassets | 268,602,777 | 251,902,602 | 252,718,459 | 221,192,234 |
| Non-currentassets | 384,948,572 | 399,165,555 | 314,112,626 | 320,233,623 |
| Totalassets | 653,551,349 | 651,068,157 | 566,831,085 | 541,425,857 |
| Currentliabilities | 26,013,757 | 22,424,425 | 167,265,413 | 140,793,252 |
| Non-currentliabilities | 3,603,886 | 3,020,582 | 9,598,445 | 11,311,586 |
| Totalliabilities | 29,617,643 | 25,445,007 | 176,863,858 | 152,104,838 |
| Operatingincome | 198,426,991 | 175,992,960 | 232,778,304 | 238,351,323 |
| Netprofit/(loss) | 2,636,577 | (3,366,711) | 11,018,541 | 23,561,992 |
| Totalcomprehensiveincome | 2,636,577 | (3,366,711) | 8,322,765 | 29,720,066 |
| Cashflowsfromoperatingactivities | 10,320,219 | 8,265,568 | 22,541,317 | 18,971,851 |
2TransactionsthatcausechangesintheGroup’sinterestsinsubsidiariesthatdonotresultin
lossofcontrol
(1)ChangesintheGroup’sinterestsinsubsidiaries:
| Fiscalyear | NameofSubsidiary | Percentageofminorityshareholdingsacquired | Purchasedate |
| 2023 | GoldenIceWineVally | 49% | 30/01/2023 |
(2)Impactoftransactionsonnon-controllinginterestsandequityattributabletotheshareholders
oftheCompany:
| GoldenIceWineVally | |
| Acquisitioncostconsideration | |
| -Cash | 29,246,777 |
| -Non-cashassets | 3,500,000 |
| Total | 32,746,777 |
| Less:Shareofnetassetsinsubsidiariesbasedonthesharesacquired | 31,502,609 |
| Difference | 1,244,168 |
| Including:Adjustmenttocapitalreserve | 1,244,168 |
IX.Riskrelatedtofinancialinstruments
TheGrouphasexposuretothefollowingmainrisksfromitsuseoffinancialinstrumentsinthenormalcourseoftheGroup’soperations:
-Creditrisk-Liquidityrisk-Interestraterisk-ForeigncurrencyriskThefollowingmainlypresentsinformationabouttheGroup’sexposuretoeachoftheaboverisksandtheirsources,theirchangesduringtheyear,andtheGroup’sobjectives,policiesandprocessesformeasuringandmanagingrisks,andtheirchangesduringtheyear.TheGroupaimstoseekappropriatebalancebetweentherisksandbenefitsfromitsuseoffinancialinstrumentsandtomitigatetheadverseeffectsthattherisksoffinancialinstrumentshaveontheGroup’sfinancialperformance.Basedonsuchobjectives,theGroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.1Creditrisk
Creditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischargeanobligation.TheGroup’screditriskisprimarilyattributabletocashatbank,receivables,debtinvestmentsandderivativefinancialinstrumentsenteredintoforhedgingpurposes.Exposuretothesecreditrisksaremonitoredbymanagementonanongoingbasis.ThecashatbankoftheGroupismainlyheldwithwell-knownfinancialinstitutions.ManagementdoesnotforeseeanysignificantcreditrisksfromthesedepositsanddoesnotexpectthatthesefinancialinstitutionsmaydefaultandcauselossestotheGroup.Asat31December2023,theGroup’smaximumexposuretocreditriskwhichwillcauseafinanciallosstotheGroupduetofailuretodischargeanobligationbythecounterparties.Inordertominimisethecreditrisk,theGrouphasadoptedapolicytoensurethatallsalescustomershavegoodcreditrecords.AccordingtothepolicyoftheGroup,creditreviewisrequiredforclientswhorequirecredittransactions.Inaddition,theGroupcontinuouslymonitorsthebalanceofaccountreceivabletoensurethere’snoexposuretosignificantbaddebtrisks.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecificapprovaloftheDepartmentofCreditControlintheGroup.Inaddition,theGroupreviewstherecoverableamountofeachindividualtradedebtateachbalancesheetdatetoensurethatadequateimpairmentlossesaremadeforirrecoverableamounts.Inthisregard,themanagementoftheGroupconsidersthattheGroup’screditriskissignificantlyreduced.
SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Concentrationsofcreditriskaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.Asat31December2023,49.0%oftheGrouptradereceivablesareduefromtopfivecustomers(31December2022:48.8%).ThereisnocollateralorothercreditenhancementonthebalanceofthetradereceivablesoftheGroup.2Liquidityrisk
Liquidityriskistheriskthatanenterprisewillencounterdifficultyinmeetingobligationsthataresettledbydeliveringcashoranotherfinancialasset.TheCompanyanditsindividualsubsidiariesareresponsiblefortheirowncashmanagement,includingshort-terminvestmentofcashsurplusesandtheraisingofloanstocoverexpectedcashdemands(subjecttoapprovalbytheCompany’sboardwhentheborrowingsexceedcertainpredeterminedlevels).TheGroup’spolicyistoregularlymonitoritsliquidityrequirementsanditscompliancewithlendingcovenants,toensurethatitmaintainssufficientreservesofcash,readilyrealisablemarketablesecuritiesandadequatecommittedlinesoffundingfrommajorfinancialinstitutionstomeetitsliquidityrequirementsintheshortandlongerterm.ThefollowingtablessetouttheremainingcontractualmaturitiesatthebalancesheetdateoftheGroup’sfinancialliabilities,whicharebasedoncontractualundiscountedcashflows(includinginterestpaymentscomputedusingcontractualratesor,iffloating,basedonratescurrentatthebalancesheetdate)andtheearliestdatetheGroupcanberequiredtopay:
Item
| Item | 2023Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 378,707,190 | - | - | - | 378,707,190 | 364,981,445 |
| Accountspayable | 473,352,525 | - | - | - | 473,352,525 | 473,352,525 |
| Otherpayables | 555,634,336 | - | - | - | 555,634,336 | 555,634,336 |
| Long-termpayables(includingtheportionduewithinoneyear) | 62,702,857 | 9,455,183 | 61,890,894 | - | 134,048,934 | 125,127,311 |
| Leaseliability(includingtheportionduewithinoneyear) | 24,050,888 | 23,215,484 | 21,007,143 | 62,047,723 | 130,321,238 | 105,051,460 |
| Total | 1,494,447,796 | 32,670,667 | 82,898,037 | 62,047,723 | 1,672,064,223 | 1,624,147,077 |
Item
| Item | 2022Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 396,981,235 | - | - | - | 396,981,235 | 389,378,480 |
| Accountspayable | 503,323,746 | - | - | - | 503,323,746 | 503,323,746 |
| Otherpayables | 372,608,689 | - | - | - | 372,608,689 | 372,608,689 |
| Long-termloans(includingtheportionduewithinoneyear) | 75,108,083 | 70,927,517 | 115,864,799 | - | 261,900,399 | 231,124,009 |
| Long-termpayables(includingtheportionduewithinoneyear) | 22,546,674 | 22,282,674 | 20,039,452 | - | 64,868,800 | 64,000,000 |
| Leaseliability(includingtheportionduewithinoneyear) | 22,767,666 | 22,126,517 | 33,652,990 | 68,864,863 | 147,412,036 | 128,514,033 |
| Total | 1,393,336,093 | 115,336,708 | 169,557,241 | 68,864,863 | 1,747,094,905 | 1,688,948,957 |
3Interestraterisk
Interest-bearingfinancialinstrumentsatvariableratesandatfixedratesexposetheGrouptocashflowinterestrateriskandfairvalueinterestrisk,respectively.TheGroupdeterminestheappropriateweightingsofthefixedandfloatingrateinterest-bearinginstrumentsbasedonthecurrentmarketconditionsandperformsregularreviewsandmonitoringtoachieveanappropriatemixoffixedandfloatingrateexposure.
(1)Asat31December,theGroupheldthefollowinginterest-bearingfinancialinstruments:
Fixedrateinstruments:
Item
| Item | 2023 | 2022 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 1.45%-2.25% | 579,200,000 | 2.00%-2.25% | 53,200,000 |
| Financialliabilities | ? | ? | ||
| -Short-termloans | 6.83%~7.30% | (96,562,141) | 0.65%-6.76% | (155,774,939) |
| -Long-termloans(includingtheportionduewithinoneyear) | 1.50%-3.28% | (5,860,499) | 1.50%-3.65% | (183,331,680) |
| -Long-termpayables(includingtheportionduewithinoneyear) | ?- | - | 1.20% | (64,000,000) |
| -Leaseliability(includingtheportionduewithinoneyear) | 4.65% | (105,051,460) | 4.65% | (128,514,033) |
| Total | ? | 371,725,900 | (478,420,652) | |
Variablerateinstruments:
| Item | 2023 | 2022 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 0.20%-1.61% | 1,638,418,696 | 0.25%-1.61% | 1,598,206,161 |
| Financialliabilities | ? | ? | ||
| -Short-termloans | 1YearLPR-0.95% | (100,000,000) | 1yearLPR0.5% | (200,000,000) |
| -Short-termloans | 1.81%~2.54% | (23,272,320) | 1.81%-2.54% | (33,603,542) |
| -Short-termloans | 3.90%~6.95% | (145,146,984) | - | - |
| -Long-termloans(includingtheportionduewithinoneyear) | -? | - | BBSY+1.10% | (44,781,100) |
| -Long-termloans(includingtheportionduewithinoneyear) | 2.00%~7.59% | (119,266,812) | 2.85%-3.35% | (3,011,228) |
| Total | ? | 1,250,732,580 | 1,316,810,291 | |
(2)Sensitivityanalysis
ManagementoftheGroupbelievesinterestrateriskonbankdepositisnotsignificant,thereforedoesnotdisclosesensitivityanalysisforinterestraterisk.
Asat31December2023,basedonassumptionsabove,itisestimatedthatageneralincreaseof50basispointsininterestrates,withallothervariablesheldconstant,woulddecreasetheGroup’sequitybyRMB1,453,823(2022:RMB1,055,235),andnetprofitbyRMB1,453,823(2022:RMB1,055,235).Thesensitivityanalysisaboveindicatestheinstantaneouschangeinthenetprofitandequitythatwouldariseassumingthatthechangeininterestrateshadoccurredatthebalancesheetdateandhadbeenappliedtore-measurethosefinancialinstrumentsheldbytheGroupwhichexposetheGrouptofairvalueinterestrateriskatthebalancesheetdate.Inrespectoftheexposuretocashflowinterestrateriskarisingfromfloatingratenon-derivativeinstrumentsheldbytheGroupatthebalancesheetdate,theimpactonthenetprofitandequityisestimatedasanannualisedimpactoninterestexpenseorincomeofsuchachangeininterestrates.4Foreigncurrencyrisk
Inrespectofcashatbankandonhand,accountsreceivableandpayable,short-termloansdenominatedinforeigncurrenciesotherthanthefunctionalcurrency,theGroupensuresthatitsnetexposureiskepttoanacceptablelevelbybuyingorsellingforeigncurrenciesatspotrateswhennecessarytoaddressshort-termimbalances.
(1)Asat31December,theGroup’sexposuretomaincurrencyriskarisingfromrecognised
assetsorliabilitiesdenominatedinforeigncurrenciesispresentedinthefollowingtables.Forpresentationpurposes,theamountsoftheexposureareshowninRenminbi,translatedusingthespotrateatthebalancesheetdate.Differencesresultingfromthetranslationofthefinancialstatementsdenominatedinforeigncurrencyareexcluded.
2023
| 2023 | 2022 | |||
| Balanceatforeigncurrency | BalanceatRMBequivalent | Balanceatforeigncurrency | BalanceatRMBequivalent | |
| Cashatbankandonhand | ||||
| -USD | 308,229 | 2,184,232 | 10,922 | 76,068 |
| -EUR | 67 | 523 | 67 | 494 |
| -HKD | 217 | 196 | 208 | 186 |
| Short-termloans | ? | ? | ||
| -USD | 13,625,000 | 96,562,141 | 13,750,000 | 95,792,132 |
(2)ThefollowingaretheexchangeratesforRenminbiagainstforeigncurrenciesappliedbythe
Group:
| Averagerate | Balancesheetdatemid-spotrate | |||
| 2023 | 2022 | 2023 | 2022 | |
| USD | 7.0558 | 6.7573 | 7.0871 | 6.9646 |
| EUR | 7.6689 | 7.0985 | 7.8592 | 7.4229 |
| HKD | 0.9011 | 0.8583 | 0.9062 | 0.8933 |
(3)Sensitivityanalysis
Assumingallotherriskvariablesremainedconstant,a5%strengtheningoftheRenminbiagainsttheUSdollarandEurodollarat31DecemberwouldhaveimpactontheGroup’sequityandnetprofitbytheamountshownbelow.whoseeffectisinRenminbiandtranslatedusingthespotrateattheyear-enddate:
Equity
| Equity | Netprofit | |
| 31December2023 | ||
| USD | 3,539,172 | 3,539,172 |
| EUR | (20) | (20) |
| HKD | (7) | (7) |
| Total | 3,539,145 | 3,539,145 |
| 31December2022 | ||
| USD | 3,589,352 | 3,589,352 |
| EUR | (19) | (19) |
| HKD | (7) | (7) |
| Total | 3,589,326 | 3,589,326 |
A5%weakeningoftheRenminbiagainsttheUSdollarandEurodollarat31Decemberwouldhavehadtheequalbutoppositeeffecttotheamountsshownabove,onthebasisthatallothervariablesremainedconstant.X.Fairvaluedisclosure
AllfinancialassetsandfinancialliabilitiesheldbytheGrouparecarriedatamountsnotmateriallydifferentfromtheirfairvalueat31December2023and31December2022.
XI.Relatedpartiesandrelatedpartytransactions1InformationabouttheparentoftheCompany
Companyname
| Companyname | Registeredplace | Businessnature | Registeredcapital | Shareholdingpercentage(%) | Percentageofvotingrights(%) | UltimatecontrollingpartyoftheCompany |
| ChangyuGroup | Yantai | Manufacturing | 50,000,000 | 49.9% | 49.9% | JointlycontrolledbyYantaiGuoFengInvestmentHoldingLtd,ILLVASARONNOHOLDINGSPA,InternationalFinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited. |
Theregisteredcapitaloftheparentcompanydidnotchangein2023,whiletheparentcompany’sshareholdingpercentageandproportionofvotingrightschangedfrom50.4%to49.9%.
2InformationaboutthesubsidiariesoftheCompany
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVIII.1.3Informationonotherrelatedparties
Nameofotherrelatedparties
| Nameofotherrelatedparties | Relatedpartyrelationship |
| YantaiShenmaPackagingCo.,Ltd.(“ShenmaPackaging”) | Controlledbythesameparentcompany |
| YantaiZhongyaZhibaoPharmaceuticalCo.,Ltd.(“ZhongyaZhibao”) | InformationontheGroup’sdirectors,supervisorsandtheseniormanagement |
| WEMISS(Shanghai)EnterpriseDevelopmentCo.,Ltd(“WEMISSShanghai”) | AssociateoftheGroupfromJanuary1toJanuary30,2023SubsidiariesofthejointventureafterJanuary31,2023 |
| ShanghaiYufengBrandManagementCo.,Ltd.("ShanghaiYufeng”) | AssociateoftheGroup |
| YantaiGuolongWineIndustryCo.,Ltd(“YantaiGuolong”) | AssociateoftheGroup |
| SocieteCivileArgricoleDuChateauDeMirefleurs(“Mirefleurs”) | Subsidiariesofthejointventure |
| CHATEAUDELIVERSAN(“LIVERSAN”) | Subsidiariesofthejointventure |
4Transactionswithrelatedparties
(1)Productprocurement
| Relatedparties | Natureoftransaction | 2023 | 2022 |
| ShenmaPackaging | Productprocurement | 83,991,232 | 82,187,388 |
| ZhongyaZhibao | Productprocurement | 152,932 | 253,410 |
| Mirefleurs | Productprocurement | 7,844,108 | 7,054,664 |
| LIVERSAN | Productprocurement | 2,602,967 | 2,870,515 |
| Total | 94,591,239 | 92,365,977 |
(2)Salesofgoods
| Relatedparties | Natureoftransaction | 2023 | 2022 |
| ZhongyaZhibao | Salesofgoods | 4,306,827 | 5,384,362 |
| ShanghaiYufeng | Salesofgoods | 5,691,239 | 2,017,066 |
| WemissShanghai | Salesofgoods | - | 614,302 |
| ShenmaPackaging | Salesofgoods | 121,548 | 110,048 |
| YantaiGuolong | Salesofgoods | 9,152,265 | 26,816,648 |
| Total | 19,271,879 | 34,942,426 |
(3)Purchaseoffixedassets
RelatedpartiesoftheCompany
| RelatedpartiesoftheCompany | Natureoftransaction | 2023 | 2022 |
| ShenmaPackaging | Purchaseoffixedassets | 1,592,698 | 4,245,929 |
| Total | 1,592,698 | 4,245,929 |
(4)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2023 | Leaseincomerecognisedin2022 |
| ShenmaPackaging | Officesandplants | 1,549,410 | 1,549,410 |
| ZhongyaZhibao | Officesandplants | 963,810 | 590,476 |
| Total | 2,513,220 | 2,139,886 |
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2023 | Leaseexpenserecognisedin2022 |
| ChangyuGroup | Officebuildings | 1,612,118 | 1,425,735 |
| ChangyuGroup | Officesandplants | 1,394,762 | 1,275,144 |
| ChangyuGroup | Officesandplants | 4,184,286 | 3,825,433 |
| ChangyuGroup | Officesandcommercialbuilding | 7,057,143 | 6,145,488 |
| Total | 14,248,309 | 12,671,800 |
(5)Remunerationofkeymanagementpersonnel
| Item | 2023 | 2022 |
| Remunerationofkeymanagementpersonnel | 12,846,007 | 10,265,674 |
(6)Otherrelatedpartytransactions
| Relatedparties | Natureoftransaction | 2023 | 2022 |
| ChangyuGroup | Trademarks | 27,515,798 | 21,877,171 |
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theCompanymayusecertaintrademarksofChangyuGroupCompany,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup’sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGrouppaysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon0.98%ofthesalesvolumeoftheGroup‘scontractproductsusingthistrademark.Thearticle6.3isamendedto:TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.TheGroupincurredatrademarkusagefeeofRMB27,515,798thisyear.
5Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
Item
| Item | Relatedparty | 2023 | 2022 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivable | ZhongyaZhibao | 1,476,262 | 2,670 | 2,627,473 | 8,091 |
| Accountsreceivable | ShanghaiYufeng | 2,925,045 | 5,290 | - | - |
| Accountsreceivable | YantaiGuolong | - | - | 200,000 | 616 |
| Prepayments | Mirefleurs | 6,642,165 | - | - | - |
| Othercurrentassets | ChangyuGroup | - | - | 120,930,641 | - |
Payablestorelatedparties
| Item | Relatedparty | 2023 | 2022 |
| Accountspayable | ShenmaPackaging | 27,358,723 | 36,600,233 |
| Accountspayable | ZhongyaZhibao | 2,066 | 5,365,862 |
| Accountspayable | ShanghaiYufeng | - | 143,659 |
| Accountspayable | ChangyuGroup | - | 19,434,600 |
| Contractliabilities | ZhongyaZhibao | - | 240 |
| Contractliabilities | YantaiGuolong | 14,840,000 | - |
| Otherpayables | ChangyuGroup | 27,515,798 | - |
| Otherpayables | ShenmaPackaging | 400,000 | 471,869 |
XII.Capitalmanagement
TheGroup’sprimaryobjectiveswhenmanagingcapitalaretosafeguarditsabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsforshareholders,bypricingproductsandservicescommensuratelywiththelevelofriskandbysecuringaccesstofinanceatareasonablecost.TheGroup’scapitalstructureisregularlyreviewedandmanagedtoachieveanoptimalstructureandreturnforshareholders.FactorsfortheGroup’sconsiderationinclude:itsfuturefundingrequirements,capitalefficiency,actualandexpectedprofitability,expectedcashflows,andexpectedcapitalexpenditure.AdjustmentsaremadetothecapitalstructureinlightofchangesineconomicconditionsaffectingtheGroup.NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.
XIII.Share-basedpayments
1Equityinstruments
(1)Shareoptionsorotherequityinstrumentsoutstandingattheendoftheyear
Typeofgrantees
| Typeofgrantees | Grantedduringtheyear | Exercisedduringtheyear | Unlockedduringtheyear | Forfeitedduringtheyear | ||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
| Somedirectors,theseniormanagement,themiddlemanagementandcoretechnical(operational)cadre | 6,785,559 | 103,411,919 | - | - | - | - | - | - |
| Total | 6,785,559 | 103,411,919 | - | - | - | - | - | - |
(2)Equity-settledshare-basedpayments
PursuanttotheProposalontheCompany’s2023RestrictedShareIncentivePlan(Draft)andRelevantSummaryandtheProposalontheRequestfortheAuthorisationtotheBoardofDirectorsbytheGeneralMeetingsofShareholderstoHandleMattersrelatedtotheCompany’s2023RestrictedShareIncentivePlanpassedbyresolutionsintheGroup’s2022GeneralMeetingsofShareholdersheldon26May2023aswellastheProposalontheAdjustmentstoMattersrelatedto2023RestrictedShareIncentivePlanandtheProposalontheGrantingofRestrictedSharestoIncentiveObjectsunderthe2023RestrictedShareIncentivePlanreviewedandpassedinthe2023firstextraordinaryBoardmeetingheldon26June2023,theGroupdeterminedtogrant6,850,000restrictedsharesto204incentiveobjectsatagrantpriceofRMB15.24pershareon26June2023(thegrantdate).Atotalof203incentiveobjectsoftheGroupactuallysubscribedfor6,785,559restrictedsharesatagrantpriceofRMB15.24pershare.ThetransactionincreasedtheCompany’sregisteredcapitalbyRMB6,785,559,increasedthecapitalreservebyRMB96,626,360.Allrestrictedsharesgrantedtoincentiveobjectsaresubjecttodifferentrestrictedsalesperiods,whicharerespectively12months,24monthsand36monthsfromthedateofcompletionofthegrantregistrationoftherestrictedsharesgrantedtotheincentiveobjects.TherestrictedsharesgrantedtotheincentiveobjectsundertheRestrictedShareIncentivePlanshallnotbetransferred,pledgedascollateralortorepaydebtsduringtherestrictedsalesperiods.Allrestrictedsharesgrantedtoincentiveobjectswillbeunlockedinthreephasesafter12monthsfromthegrantdate,withtheproportionofunlockingineachphasebeing30%,30%and40%,respectively,correspondingtounlockingdatesofoneyear,twoyearsandthreeyearsfromthegrantdate.Theactualunlockedsharesshallbelinkedtotheperformanceappraisalforeachyear.WhentheCompany’sperformancemeetsthecorrespondingcriteria,theunlockingproportionoftheabove-mentionedrestrictedsharesisdeterminedbasedonthebusinessperformanceoftheincentiveobject’soperationandthecontributionvalueoftheincentiveobject.TheCompanywillrepurchasethelockedrestrictedsharesatthegrantedpriceoftheincentiveobjectsiftheunlockedcriteriastipulatedinthisplanarenotmet,andtheincentiveobjectshallnotunlocktherestrictedsharesforthecurrentperiod.
Asat31December2023,thetotalcostsofequity-settledshare-basedpaymentsrecognisedintheconsolidatefinancialstatementsfortheyearwereRMB30,735,755,andtheaccumulatedamountofequity-settledshare-basedpaymentsrecognisedinthecapitalreservefortheyearamountedtoRMB30,735,755.XIV.Commitmentsandcontingencies1Significantcommitment
(1)Capitalcommitments
Item
| Item | 2023 | 2022 |
| Long-termassetsacquisitioncommitment | 50,057,140 | 45,698,000 |
| Total | 50,057,140 | 45,698,000 |
(2)Operatingleasecommitments
Asat31December,thetotalfutureminimumleasepaymentsundernon-cancellableoperatingleasesoftheGroup’spropertieswerepayableasfollows:
| Item | 2023 | 2022 |
| Within1year(inclusive) | 50,000 | - |
| Total | 50,000 | - |
2Contingencies
TheGroupdonothaveanysignificantcontingenciesasatbalancesheetdate.XV.Subsequentevents1Distributionofdividendsonordinarysharesapprovedafterthebalancesheetdate
AccordingtotheproposaloftheBoardofDirectorson10April2024,theCompanyintends
todistributecashdividendtotalingRMB346,124,780toallshareholdersof692,249,559
capitalsharesfortheyearended31December2023onthebasisofRMB5(includingtax)for
every10shares.TheproposalissubjecttotheapprovalbytheShareholders’meeting.
Thisdistributionofprofitincashhasnotbeenrecognisedasaliabilityatthebalancesheet
date.XVI.Othersignificantitems1Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparkling
wineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup’sinternal
organisationstructure,managementrequirementsandinternalreportingsystem,theGroup’s
operationisdividedintofiveparts:China,Spain,France,ChileandAustralia.The
managementperiodicallyevaluatessegmentresults,inordertoallocateresourcesand
evaluateperformances.In2023,over86%ofrevenue,morethan96%ofprofitandover
91%ofnon-currentassetsderivedfromChina/arelocatedinChina.Therefore,theGroup
doesnotneedtodiscloseadditionalsegmentreportinformation.
XVII.NotestotheCompany’sfinancialstatements1Receivablesunderfinancing
Item
| Item | Note | 2023 | 2022 |
| Billsreceivable | (1) | 36,322,019 | 41,061,417 |
| Total | 36,322,019 | 41,061,417 |
(1)ThepledgedbillsreceivableoftheCompanyattheendoftheyear
Asat31December2023,therewasnopledgedbillsreceivable(31December2022:Nil).
(2)Outstandingderecognisedendorsedbillsthathavenotmaturedattheendoftheyear
| Item | Amountrecognisedatyearend |
| Bankacceptancebills | 53,825,102 |
| Total | 53,825,102 |
Asat31December2023,derecognisedbillsendorsedbytheCompanytootherpartieswhicharenotyetdueattheendoftheperiodisRMB53,825,102(31December2022:
RMB105,149,583).Thenotesareusedforpaymenttosuppliers.TheCompanybelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theCompanywouldundertakelimitedliabilityforthenotes.2Otherreceivables
| Note | 31December2023 | 31December2022 | |
| Dividendsreceivable | (1) | - | 250,000,000 |
| Others | (2) | 576,949,997 | 470,176,320 |
| Total | 576,949,997 | 720,176,320 |
(1)Dividendsreceivable
| Item | 31December2023 | 31December2022 |
| Dividendstosubsidiaries | - | 250,000,000 |
| Total | - | 250,000,000 |
(2)Others
(a)Othersbycustomertype:
Customertype
| Customertype | 31December2023 | 31December2022 |
| Amountsduefromsubsidiaries | 574,127,885 | 470,128,362 |
| Amountsduefromrelatedparties | 2,822,112 | 47,958 |
| Sub-total | 576,949,997 | 470,176,320 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 576,949,997 | 470,176,320 |
(b)Theageinganalysisisasfollows:
| Ageing | 2023 | 2022 |
| Within1year(inclusive) | 576,845,525 | 470,071,848 |
| Over1yearbutwithin2years(inclusive) | - | - |
| Over2yearsbutwithin3years(inclusive) | - | 104,472 |
| Over3years | 104,472 | - |
| Sub-total | 576,949,997 | 470,176,320 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 576,949,997 | 470,176,320 |
Theageingiscountedstartingfromthedate.(c)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2023,nobadanddoubtfuldebtprovisionwasmadeforother
receivables(31December2022:Nil).
Asat31December2023,theCompanyhasnootherreceivableswrittenoff(31
December2022:Nil).(d)Otherscategorisedbynature
| Natureofotherreceivables | 2023 | 2022 |
| Amountsduefromsubsidiaries | 574,127,885 | 470,128,362 |
| Others | 2,822,112 | 47,958 |
| Sub-total | 576,949,997 | 470,176,320 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 576,949,997 | 470,176,320 |
(e)Fivelargestothers-bydebtorattheendoftheyear
Debtor
| Debtor | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| SalesCompany | Amountsduefromsubsidiaries | 213,386,151 | Within1year | 37.0% | - |
| KilikanoonAustralia | Amountsduefromsubsidiaries | 53,338,503 | Within1year | 9.2% | - |
| R&DCentre | Amountsduefromsubsidiaries | 32,533,000 | Within1year | 5.6% | - |
| ChateauChangyu | Amountsduefromsubsidiaries | 14,130,944 | Within1year | 2.4% | - |
| ChileIndomitaWineGroup | Amountsduefromsubsidiaries | 13,100,592 | Within1year | 2.3% | - |
| Total | 326,489,190 | 56.5% | - |
3Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
| Item | 2023 | 2022 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| Investmentsinsubsidiaries | 7,690,772,693 | (42,274,055) | 7,648,498,638 | 7,703,535,027 | - | 7,703,535,027 |
| Investmentsinassociates | - | - | - | 2,318,351 | - | 2,318,351 |
| Total | 7,690,772,693 | (42,274,055) | 7,648,498,638 | 7,705,853,378 | - | 7,705,853,378 |
(2)Investmentsinsubsidiaries:
Subsidiary
| Subsidiary | Balanceatthebeginningoftheyear | Additionsduringtheyear | Additionsduringtheyear-EquityIncentives | Decreaseduringtheyear | Balanceattheendoftheyear | Balanceofprovisionforimpairmentattheendoftheyear |
| XinjiangTianzhu | 60,000,000 | - | - | (60,000,000) | - | - |
| KylinPackaging | 23,176,063 | - | 367,372 | - | 23,543,435 | - |
| ChateauChangyu | 28,968,100 | - | 304,959 | - | 29,273,059 | - |
| PioneerInternational | 3,500,000 | - | 2,434,696 | - | 5,934,696 | - |
| NingxiaGrowing | 36,573,247 | - | - | - | 36,573,247 | - |
| NationalWines | 2,000,000 | - | - | - | 2,000,000 | - |
| GoldenIcewineValley | 30,440,500 | 32,746,777 | 244,217 | - | 63,431,494 | - |
| ChateauBeijing | 588,389,444 | - | 244,217 | - | 588,633,661 | - |
| SalesCompany | 7,200,000 | - | 14,059,694 | - | 21,259,694 | - |
| LangfangSales | 100,000 | - | - | (100,000) | - | - |
| LangfangCastel | 19,835,730 | - | - | (19,835,730) | - | - |
| WineSales | 4,500,000 | - | 833,190 | - | 5,333,190 | - |
| ShanghaiMarketing | 1,000,000 | - | - | - | 1,000,000 | - |
| BeijingSales | 850,000 | - | - | - | 850,000 | - |
| JingyangSales | 100,000 | - | - | (100,000) | - | - |
| JingyangWine | 900,000 | - | - | - | 900,000 | - |
| NingxiaWine | 222,309,388 | - | - | - | 222,309,388 | - |
| ChateauNingxia | 453,463,500 | - | 284,014 | - | 453,747,514 | - |
| ChateauTinlot | 212,039,586 | - | - | - | 212,039,586 | - |
| ChateauShihezi | 812,019,770 | - | 284,014 | - | 812,303,784 | - |
| ChateauChangan | 803,892,258 | - | 304,959 | - | 804,197,217 | - |
| R&DCentre | 3,288,906,445 | - | 1,324,269 | - | 3,290,230,714 | - |
| HuanrenWine | 22,200,000 | - | - | - | 22,200,000 | - |
| WineSalesCompany | 5,000,000 | - | 102,210 | - | 5,102,210 | - |
| FrancsChamps | 236,025,404 | - | - | - | 236,025,404 | - |
| Dicot | 233,142,269 | - | - | - | 233,142,269 | 5,210,925 |
| ChileIndomitaWineGroup | 274,248,114 | - | - | - | 274,248,114 | - |
| AustraliaKilikanoonEstate | 129,275,639 | - | - | - | 129,275,639 | 37,063,130 |
| DigitalMarketing | 1,000,000 | - | 186,121 | - | 1,186,121 | - |
| ChateauKoya | 110,000,000 | - | 328,128 | - | 110,328,128 | - |
| WemissShanghai | - | 7,910,985 | - | - | 7,910,985 | - |
| CultureDevelopment | 92,479,570 | - | 142,004 | - | 92,621,574 | - |
| DevelopmentZoneTrading | - | - | 861,192 | - | 861,192 | - |
| Penglaisales | - | - | 1,104,339 | - | 1,104,339 | - |
| Longkousales | - | - | 1,611,286 | - | 1,611,286 | - |
| Laizhousales | - | - | 84,916 | - | 84,916 | - |
| YantaiRoulletFransac | - | - | 244,217 | - | 244,217 | - |
| Museum | - | - | 265,162 | - | 265,162 | - |
| WindowoftheWineCity | - | - | 470,134 | - | 470,134 | - |
| AFIPTourism | - | - | 162,952 | - | 162,952 | - |
| MeetingCenter | - | - | 102,210 | - | 102,210 | - |
| NingxiaTrading | - | - | 162,952 | - | 162,952 | - |
| CreightonCatering | - | - | 102,210 | - | 102,210 | - |
| Total | 7,703,535,027 | 40,657,762 | 26,615,634 | (80,035,730) | 7,690,772,693 | 42,274,055 |
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVIII.
(3)Investmentsinassociates:
Subsidiary
| Subsidiary | Balanceatthebeginningoftheyear | Investmentlossesrecognizedundertheequitymethod | Others(Notes.V.9) | Balanceattheendoftheyear |
| WEMISSShanghai | 2,318,351 | 54,934 | (2,373,285) | - |
| Total | 2,318,351 | 54,934 | (2,373,285) | - |
4Operatingincomeandoperatingcosts
| Item | 2023 | 2022 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 723,412,525 | 615,998,040 | 672,635,481 | 575,896,372 |
| Otheroperatingactivities | 7,746,429 | 5,638,524 | 2,426,940 | 1,420,479 |
| Total | 731,158,954 | 621,636,564 | 675,062,421 | 577,316,851 |
| Including:Revenuefromcontractswithcustomers | 723,412,525 | 615,998,040 | 672,635,481 | 575,896,372 |
| Rentincome | 7,746,429 | 5,638,524 | 2,426,940 | 1,420,479 |
Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2023 | 2022 |
| Bytypeofgoodsorservices | ||
| -Liquor | 723,412,525 | 672,635,481 |
| Bytimingoftransferringgoodsorservices | ? | |
| -Revenuerecognisedatapointintime | 723,412,525 | 672,635,481 |
5Investmentincome
| Item | 2023 | 2022 |
| Incomefromlong-termequityinvestmentsaccountedforusingcostmethod | 476,632,356 | 738,407,264 |
| Income/(Loss)fromlong-termequityinvestmentsaccountedforusingequitymethod | 54,935 | (48,460) |
| Lossfromlong-termequityinvestmentsaccountedfordisposaloflong-termequityinvestment | (37,436,762) | (1,842,325) |
| Total | 439,250,529 | 736,516,479 |
6Transactionswithrelatedparties
(1)Productprocurement
| Relatedparties | Natureoftransaction | 2023 | 2022 |
| Subsidiaryoftheparentcompany | Productprocurement | 292,073,183 | 154,806,785 |
| OtherrelatedpartiesoftheCompany | Productprocurement | 43,934,847 | 42,578,235 |
| Total | 336,008,030 | 197,385,020 |
(2)Salesofgoods
Relatedparties
| Relatedparties | Natureoftransaction | 2023 | 2022 |
| Subsidiaryoftheparentcompany | Salesofgoods | 787,731,546 | 504,080,073 |
| OtherrelatedpartiesoftheCompany | Salesofgoods | 3,184,145 | 2,952,493 |
| Total | 790,915,691 | 507,032,566 |
(3)Guarantee
TheCompanyastheguarantor
| Guaranteeholder | Currency | Amountofguarantee | Inceptiondateofguarantee | Maturitydateofguarantee | Guaranteeexpired(Y/N) |
| AustraliaKilikanoonEstate | AUD | 17,550,000 | 13December2018 | 13December2023 | Y |
| AustraliaKilikanoonEstate | AUD | 4,800,000 | 1March2025 | 29Feburary2028 | N |
(4)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2023 | Leaseincomerecognisedin2022 |
| OtherrelatedpartiesoftheCompany | Officesandplants | 2,513,220 | 2,139,886 |
| Subsidiaryoftheparentcompany | Officesbuildings | 85,714 | 85,714 |
| Total | 2,598,934 | 2,225,600 |
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2023 | Leaseexpenserecognisedin2022 |
| OtherrelatedpartiesoftheCompany | Officebuildings | 1,394,762 | 1,275,144 |
| Total | Officebuildings | 1,394,762 | 1,275,144 |
7Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
| Item | Relatedparty | 2023 | 2022 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivables | OtherrelatedpartiesoftheCompany | 727,123 | 1,298 | 2,309,309 | 7,805 |
| Prepayments | OtherrelatedpartiesoftheCompany | 4,472,159 | - | - | - |
| Otherreceivables | Subsidiaryoftheparentcompany | 574,127,885 | - | 720,128,362 | - |
| Othernon-currentassets | Subsidiaryoftheparentcompany | 1,934,430,000 | - | 1,850,200,000 | - |
Payablestorelatedparties
Item
| Item | Relatedparty | 2023 | 2022 |
| Accountspayable | OtherrelatedpartiesoftheCompany | 13,895,970 | 35,944,149 |
| Otherpayables | Subsidiaryoftheparentcompany | 441,681,129 | 421,781,524 |
| Otherpayables | OtherrelatedpartiesoftheCompany | 400,000 | 471,869 |
XVIII.Extraordinarygainsandlossesin2023
| Item | Amount | |
| (1) | Profitandlossfromdisposalofnon-currentassets | 23,852,237 |
| (2) | Governmentgrantsrecognisedthroughprofitorloss(exceptforthosewhicharecloselyrelatedtothecompany’snormaloperations,whichthecompanyisentitledtounderestablishedstandardsinaccordancewithgovernmentpoliciesandwhichhaveacontinuingimpactontheprofitsandlossesofthecompany) | 51,523,799 |
| (3) | Othernon-operatingincomeandexpensesbesidesitemsabove | 9,137,420 |
| Sub-total | 84,513,456 | |
| (4) | Taxeffect | (13,643,745) |
| (5) | Effectonnon-controllinginterestsaftertaxation | (2,504,497) |
| Total | 68,365,214 | |
Note:Extraordinarygainandlossitems(1)to(3)listedabovearepresentedintheamount
beforetaxation.XIX.Returnonnetassetsandearningspershare1Calculationofearningspershare
(1)Basicearningspershare
Forcalculationofthebasicearningspershare,pleaserefertoNoteV.50.
(2)Basicearningspershareexcludingextraordinarygainandloss
BasicearningspershareexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
2023
| 2023 | 2022 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 532,438,907 | 428,681,411 |
| ExtraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany | 68,365,214 | 14,850,052 |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 464,073,693 | 413,831,359 |
| Weightedaveragenumberofordinarysharesoutstanding | 685,464,000 | 685,464,000 |
| Basicearningspershareexcludingextraordinarygainandloss(RMB/share) | 0.68 | 0.60 |
(3)Dilutedearningspershare
Forcalculationofthedilutedearningspershare,pleaserefertoNoteV.50.
(4)Dilutedearningspershareexcludingextraordinarygainsandlosses
DilutedearningspershareexcludingextraordinarygainsandlossesiscalculatedbydividingconsolidatednetprofitexcludingextraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany(diluted)bytheweightedaveragenumberofordinarysharesoutstanding(diluted):
| 2023 | 2022 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany(diluted) | 532,438,907 | 428,681,411 |
| ExtraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany | 68,365,214 | 14,850,052 |
| ConsolidatednetprofitexcludingextraordinarygainsandlossesattributabletotheCompany’sordinaryequityshareholders(diluted) | 464,073,693 | 413,831,359 |
| Weightedaveragenumberofordinarysharesoutstanding(diluted) | 685,670,893 | 685,464,000 |
| Dilutedearningspershareexcludingextraordinarygainsandlosses(RMB/share) | 0.68 | 0.60 |
2Calculationofweightedaveragereturnonnetassets
(1)Weightedaveragereturnonnetassets
WeightedaveragereturnonnetassetsiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:
2023
| 2023 | 2022 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 532,438,907 | 428,681,411 |
| Weightedaverageamountofconsolidatednetassets | 10,684,054,057 | 10,487,764,058 |
| Weightedaveragereturnonnetassets | 4.98% | 4.09% |
Calculationofweightedaverageamountofconsolidatednetassetsisasfollows:
| 2023 | 2022 | |
| Consolidatednetassetsatthebeginningoftheyear | 10,579,053,733 | 10,447,884,183 |
| EffectofconsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 270,707,233 | 219,814,175 |
| EffectsofRestrictedShareIncentivePlan | 15,367,878 | - |
| Acquisitionofnon-controllinginterests | (1,140,487) | - |
| Effectofsharesrepurchased(NoteV.37) | (179,934,300) | (179,934,300) |
| Weightedaverageamountofconsolidatednetassets | 10,684,054,057 | 10,487,764,058 |
(2)Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss
WeightedaveragereturnonnetassetsexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:
| 2023 | 2022 | |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 464,073,693 | 413,831,359 |
| Weightedaverageamountofconsolidatednetassets | 10,684,054,057 | 10,487,764,058 |
| Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss | 4.34% | 3.95% |
YantaiChangyuPioneerWineCo.,Ltd.
BoardofDirectorsApril12,2024