YantaiChangyuPioneerWineCo.,Ltd.
2020Semi-annualReport
Final2020-03
August,2020
Contents
2020Semi-annualReport ...... 1
I.ImportantNotice,ContentsandDefinition..................................................................................3
II.BriefIntroductionfortheCompanyandMainFinancialIndicators....................................5
III.SummaryoftheCompany'sBusinesses..................................................................................9
IV.ManagementDiscussionandAnalysis...................................................................................13
V.Majorissues...............................................................................................................................29
VI.ChangesinSharesandtheShareholders'Situation.............................................................44
VII.RelatedSituationofPreferredShares..................................................................................50
VIII.RelatedSituationofConvertibleCorporateBonds.............................................................50
IX.SituationforDirectors,Supervisors,SeniorExecutives........................................................51
X.RelatedSituationofCorporationBonds.................................................................................53
XI.FinancialReport.........................................................................................................................53
XII.ReferenceDocuments.............................................................................................................165
I.ImportantNotice,ContentsandDefinitionTheboardofdirectors,theboardofsupervisors,directors,supervisorsandseniorexecutivesoftheCompanyguaranteethetruthfulness,accuracyandcompletenessofthecontentscontainedinsemi-annualreportwithnofalserecords,misleadingstatementsorsignificantomissions,andundertakeindividualandjointlegalliabilities.Mr.ZhouHongjiang(PersoninchargeoftheCompany),Mr.JiangJianxun(Personinchargeofaccountingwork)andMs.GuoCuimei(Personinchargeofaccountingorgan&Accountantincharge)assurethetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.Exceptfollowingdirectors,otherdirectorshavepersonallyattendedthemeetingfordeliberatingthesemi-annualreport.
Nameofdirectornotattendingthemeetingpersonally
| Nameofdirectornotattendingthemeetingpersonally | Positionofdirectornotattendingthemeetingpersonally | Reasonofnotattendingthemeetingpersonally | Nameofentrustee |
| EnricoSivieri | Director | AffectedbyCOVID-19epidemic | ZhouHongjiang |
| StefanoBattioni | Director | AffectedbyCOVID-19epidemic | ZhouHongjiang |
| AldinoMarzorati | Director | AffectedbyCOVID-19epidemic | LengBin |
| LiuQinglin | IndependentDirector | Duetoofficialbusiness | YuRenzhu |
RegardingmajorrisksthattheCompanymayfaceduringtheproductionandmanagementprocess,pleasereferto“10.RisksfacedwithbytheCompanyandresponsemeasures”in“IVManagementDiscussionandAnalysis”inthisreport.Investorsaresuggestedtoreadcarefullyandpayattentiontoinvestmentrisks.TheCompanyhasnoplantodistributecashdividendsandbonussharesandcapitalreservewillnotbetransferredtoequity.
Definition
DefinitionItem
| DefinitionItem | Refersto | DefinitionContent |
| Company/thisCompany | 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
AbbreviationoftheShares:
| AbbreviationoftheShares: | ChangyuA、ChangyuB | CodenumberoftheShares | 000869、200869 |
| AbbreviationoftheSharesafteralteration | - | ||
| PlaceoflistingoftheShares | ShenzhenStockExchange | ||
| LegalNameinChinese | 烟台张裕葡萄酿酒股份有限公司 | ||
| AbbreviationofChinesename | 张裕 | ||
| LegalNameinEnglish | YANTAICHANGYUPIONEERWINECOMPANYLIMITED | ||
| AbbreviationofEnglishname | CHANGYU | ||
| LegalRepresentative | Mr.ZhouHongjiang | ||
2.Contactpersonandinformation
| SecretaryofBoardofDirectors | AuthorizedRepresentativeoftheSecuritiesAffairs | |
| Name | Mr.JiangJianxun | Mr.LiTingguo |
| Address | 56DamaRoad,Yantai,Shandong,China | 56DamaRoad,Yantai,Shandong,China |
| Tel | 0086-535-6602761 | 0086-535-6633656 |
| Fax | 0086-535-6633639 | 0086-535-6633639 |
| jiangjianxun@changyu.com.cn | stock@changyu.com.cn |
3.Otherinformation
1)TheCompany’scontactinformationWhetherthereisanychangeintheCompany’sregisteredaddress,officeaddress,postcode,websiteande-mailaddressduringthereportperiod.□Available?NotavailableThereisnochangeintheCompany’sofficeaddress,postcode,websiteande-mailaddressduringthereportperiod.Fordetailedinformation,pleasereferto2019annualreport.
2)InformationdisclosureandfilelocationWhetherthereisanychangeintheinformationdisclosureandfilelocationduringthereportperiod.□Available?NotavailableThereisnochangeinthenameofnewspapersinwhichtheCompany’sinformationisdisclosed,thewebsiteassignedbyCSRCtocarrythesemi-annualreportandthelocationoftheCompany’ssemi-annualreportduringthereportperiod.Fordetailedinformation,pleasereferto2019annualreport.
4.KeyaccountingdataandfinancialindicatorsWhethertheCompanymakesretroactiveadjustmentsorrestatestheaccountingdataofpreviousfiscalyears.□Yes?No
Duringthereportperiod
| Duringthereportperiod | Inthesameperiodoflastyear | Moreorlessthanlastyear(%) | |
| Businessrevenue(CNY) | 1,401,606,792 | 2,558,274,785 | -45.21% |
| Netprofitattributedtotheshareholdersofthelistedcompany(CNY) | 307,035,572 | 603,403,789 | -49.12% |
| Netprofitattributedtotheshareholdersofthelistedcompanyafterdeductingtheirregularprofitandloss(CNY) | 266,766,849 | 552,490,695 | -51.72% |
| Netcashflowsfromtheoperatingactivities(CNY) | -29,652,821 | 499,476,006 | -105.94% |
| Basicearningspershare(CNY/share) | 0.45 | 0.88 | -48.86% |
| Dilutedearningspershare(CNY/share) | 0.45 | 0.88 | -48.86% |
| Weightedaverageforearningrateofthenetassets | 2.93% | 6.13% | -3.20% |
| Theendofthisreportperiod | Theendoflastyear | Moreorlessthanlastyear(%) | |
| Totalassets(CNY) | 13,286,972,498 | 13,647,932,568 | -2.64% |
| NetAssetsattributedtotheshareholdersofthelistedcompany(CNY) | 10,131,114,317 | 10,308,910,198 | -1.72% |
5.DifferencesinaccountingdataunderPRCaccountingstandardsandinternationalaccountingstandards
1)DifferencesofnetprofitandnetassetinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandards?Available?Notavailable
Unit：CNY
Netprofitattributedtotheshareholdersofthelistedcompany
| Netprofitattributedtotheshareholdersofthelistedcompany | NetAssetsattributedtotheshareholdersofthelistedcompany | ||||
| Currentperiod | Lastperiod | Endofperiod | Beginningofperiod | ||
| AccordingtoPRCaccountingstandards | 307,035,572 | 603,403,789 | 10,131,114,317 | 10,308,910,198 | |
| Itemandamountadjustedaccordingtointernationalaccountingstandards | |||||
| Accordingtointernationalaccountingstandards | 307,035,572 | 603,403,789 | 10,131,114,317 | 10,308,910,198 | |
2)DifferencesofnetprofitandnetassetinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandards□Available?NotavailableTherearenodifferencesofnetprofitandnetassetinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
3)Explanationofthedifferencesinaccountingdataunderdomesticandoverseasaccountingstandards□Available?Notavailable
6.Itemandamountofirregulargainsandlosses?Available□Notavailable
Unit：
CNY
| Item | Amount | Explanation |
| Profitandlossondisposalofnon-currentassets(includingtheoffsetofprovisionforimpairmentofassets) | 39,641 | |
| Governmentgrantscreditedincurrentprofitandloss(exceptforgovernmentgrantsthatarecloselyrelatedtotheentity'sbusinessandareenjoyedwithaquotaorwithalimitedquantityinaccordancewithnationaluniformstandard | 49,780,231 | |
| Othernon-operatingincomeandexpenditurebesidesabove-mentioneditems | 3,814,957 | |
| Less:Amountaffectedbyincometax | 13,221,932 | |
| Amountaffectedbyminorityequity(aftertax) | 144,174 | |
| Total | 40,268,723 | - |
ThereasonsshallbemadeclearanddefinitelyastotheirregularprofitandlossthattheCompanyhasdefinedbyvirtueoftheExplanatoryNoticeonPublicCompany’sInformationDisclosureNo.1-IrregularProfitandLossandastoregardingtheirregularprofitandlossasrecurrentprofitandlossasspecifiedintheExplanatoryNoticeonPublicCompany’sInformationDisclosureNo.1-IrregularProfitandLoss.
□Available?NotavailableThereisnosituationthattheirregularprofitandlossisdefinedandspecifiedasrecurrentprofitandlossinaccordancewiththeExplanatoryNoticeonPublicCompany’sInformationDisclosureNo.1-IrregularProfitandLossduringthereportperiod.
III.SummaryoftheCompany’sBusinesses
1.MainbusinessesduringthereportperiodDuringthereportperiod,theCompany’smainbusinessistoproduceandoperatewineandbrandy,thusprovidingthedomesticandforeignconsumerswithhealthyandfashionablealcoholicdrinks.Comparedwithearlierstage,therearenomajorchangesintheCompany’smainbusinesses.ThewineindustrythattheCompanyinvolvedinisstillingrowthstage.Althoughbeingaffectedbymanyfactorsfortheshort-term,especiallytheCOVID-19,plusthefiercecompetitioninthemarket,makingthewineconsumptiontemporarilydeclines,seenfromthelongterm,thewholedomesticwinemarketisontherisingtrend.TheCompanyisattheforefrontinthedomesticwinemarket.
2.Majorchangesofmainassets
1)Majorchangesofmainassets
Mainassets
| Mainassets | Explanationofmajorchanges |
| Equityasset | Nomajorchange |
| Fixedasset | Nomajorchange |
| Intangibleasset | Nomajorchange |
| Constructioninprocess | Increasingby14.02%comparedwiththesameperiodoflastyear,mainlyowingtotheincreaseinaccumulatedinvestmentamountoffixedassets |
2)Mainoverseasassetscondition?Available□Notavailable
Detailsofassets
| Detailsofassets | Formationreason | Assetsscale | Location | Operatingmode | Controlmeasuresforsafeguardingassetsecurity | Earningposition | ProportionofoverseasassetsintheCompany’snetassets | Whethertherearemajorimpairmentrisks |
| HaciendaYVinedosMarquesDelAtrio,SL | Acquisitionofequity | 509,150,792 | Spain | Independentoperation | ThisCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOforfinancialmanagement | 10,940,963 | 5.03% | No |
| IndomitaWineCompanyChile,SpA | Establishmentbyjointventure | 504,027,375 | Chile | Independentoperation | ThisCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOforfinancialmanagement | 3,664,211 | 4.97% | No |
| KilikanoonEstatePtyLtd | Acquisitionofequity | 167,190,085 | Australia | Independentoperation | ThisCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors | 890,266 | 1.65% | No |
| FrancsChampsParticipationsSAS | Establishmentbysoleproprietorship | 228,997,008 | France | Independentoperation | ThisCompanydirectlyappointsseniorexecutivetoconductoperationandmanagement | -863,629 | 2.26% | No |
| Otherconditionexplanation | No | |||||||
3.AnalysisofcorecompetitivenessInthecompetitionpatternofChinesewineindustry,comparedwithotherparticipantsintheindustry,webelievethattheCompanyhasfollowingadvantages:
Firstly,theCompanyhasawell-knownwinebrandwithmorethan120yearsofhistory,“Changyu”,“NobleDragon”and“AFIP”areChinesefamoustrademarksthathavestronginfluenceandgoodreputation.Secondly,theCompanyhassetupanationwidemarketingnetwork.TheCompanyformsa“three-level”marketingnetworksystemmainlycomposedoftwoteamscontainingtheCompany’smarketingpersonnelanddistributors,possessingastrongmarketingabilityandmarketexploitationability.Thirdly,theCompanyownsstrongscientificprowessandaproductR&Dsystem.Relyingonthesole“National-levelWineR&DCenter”,theCompanygraspsadvancedwinemakingtechnologyandproductionprocessesandhasfairlystrongproductinnovationcapacityandperfectqualitycontrolsystem.Fourthly,theCompanyisinpossessionofgrapebasesthatcouldmeettherequirementsofdevelopment.Thescaleandthestructureofgrapebaseslocatinginregionsthatarethemostsuitableforgrowingwine-makinggrapesinChina,suchasShandong,Ningxia,Xinjiang,Liaoning,HebeiandShaanxi,havebasicallymettheCompany’sdemandsfordevelopment.Fifthly,theCompanyhasacompletehigh-end,medium-endandlow-endproductsaswellasvarietiesandcategories.Morethan100varietiesofwine,brandy,sparklingwineetc.,coveringhigh-end,medium-endandlow-endgrades,canmeettheneedsofdifferentconsumergroups.Aftermorethan10yearsofrapiddevelopment,theCompanyhasoccupiedtheleadingpositioninthedomesticwineindustry,whichhascertaincomparativeadvantagesinthefuturecompetition.Sixthly,theCompanyhasarelativelyperfectincentivemechanism.MostofCompany’semployeesindirectlyholdtheCompany’sequitythroughcontrollingshareholders.Therearehighconsistencybetweenemployeebenefitsandshareholderbenefits,infavorofbettermotivatingemployeestocreatevalueforshareholders.Seventhly,theCompanyhasestablishedaflexibleandefficientdecision-makingmechanism.ThecoremanagementoftheCompanyhasbeenmaintainingaunitedandpragmaticworkstyleandflexibleandefficientdecision-makingmechanism,enablingtheCompanytomoreunhurriedlyrespondtomarketchanges.Eighthly,theCompanyhasbasicallycompletedthelayoutofglobalproductioncapacity.TheCompanyhascompletedtheproductioncapacitylayoutintheworldwidemainwine-producingcountries,suchasChina,France,Chile,SpainandAustraliaandsoon,andcanmakebetteruseofglobalhigh-qualityrawmaterialresources,capital,talentsandadvancedproductiontechniquesandtechnologiestoprovideconsumerswithdiversifiedhighqualityproductsandbetterserveconsumers..
Basedonabovereasons,theCompanyhasformedstrongcorecompetitivenessandwillmaintainthiscomparativeadvantageintheforeseeablemarketcompetitioninthefuture.
IV.ManagementDiscussionandAnalysis
1.SummarizationDuringthereportperiod,affectedbymanyfactorssuchastheslowdownofdomesticeconomicgrowth,increaseduncertaintycausedbySino-UStradefrictionsandCOVID-19epidemic,domesticwineconsumptionhasexperiencedasharpdecline,andmarketcompetitionisveryfierce.Thesalesofbothdomesticwineandimportedwinecontinuedthe“doubledecline”trendoverthepasttwoyears.Somewineproductionandoperationenterprisesgotintotrouble.Facingquitealotofunfavorablefactors,whiletakingtheprotectionofthehealthofemployeesandcooperativepartnersasthetoppriorityofthework,theCompanyactivelyresumedallaspectsofworkbasedontheunifiedarrangementsofthestateandtheactualsituation.TheCompanyinsistedintakingthemarketasthecenter,insistedthedevelopmentstrategyof“Focusonhighquality,Focusonmiddle-and-highlevel,Focusonbigproduct”andthemarketingconceptof“Increasingsalesfromtheterminalandcontinuously-cultivatedconsumers”withoutwavering,andstrovetopromoteproductsales.Inthefirsthalfyear,theCompanyrealizedthebusinessincomeofCNY1,401.61millionwithayear-on-yeardecreaseof45.21%andthenetprofitattributabletoshareholdersoftheparentcompanyrealizedCNY307.04millionwithayear-on-yeardecreaseof49.12%.Duringthereportperiod,theCompanymainlydidfollowingwork:
Firstly,theCompanybendedoverbackwardstoraiseanti-epidemicmaterials,carriedoutthepreventionandcontrolmeasures,andfightagainsttheepidemic.Aftertheoutbreak,theCompanyimmediatelyformulatedrelativelystrictepidemicpreventionandcontrolmeasures,regulatedresponsibilitiesatvariouslevels,paidcloseattentiontorelevantpoliciesandmeasuresandepidemicdevelopments,andconductedpublicityandguidanceworktoemployeesandpartnersthroughvarioustoolssuchasWeChat,inordertoguidethemtorespondcorrectly,nottobepanic,nottobelieveandspreadrumorsandtospreadpositiveenergy.Bycontactingoverseasacquisitioncompaniesandoverseaspartners,theCompanypurchasedlargenumbersofanti-epidemicmaterialssuchasmasksandprotectiveclothingthatareshortageindomesticfromeightcountriesincludingAustralia,Spain,Chile,France,SouthKorea,Japan,MalaysiaandThailand,andalsoprovidedalargeamountofanti-epidemicmaterialstotheCompany’soverseasenterpriseswhentheforeignepidemicsituationissevere,bettermeetingtheanti-epidemicneedsofdomesticandforeignemployeesandpartners.Secondly,theCompanyvigorouslyassisteddistributorstoaccelerateproductsales.Aftertheoutbreakoftheepidemic,duetothedrasticreductionindinnergatheringsandtheslowdowninsalesofalcoholicbeverages,thereweregreaterpressuresondistributors’inventory.TheCompanyactivelytookeffortstomakemeasuresandmaintaineddailycommunicationwithdistributorsthroughcalls,SMS,WeChat,FaceTime,etc.tokeepabreastofthemarketsituationandtoensurethenormaldevelopmentofbusinesstothegreatestextent.Afterthecountryreleasedtherestrictionsonpersonnelflow,theCompany’smarketingteamseizedvariousopportunitiesandrushedtothefrontlineofthemarkettocarryoutmarketingactivitieswithinthescopeofthepolicyandmakegreateffortstopromoteproductsales,alleviatingthepressureondistributors’inventoryandfundsandensuringthehealthyoperationinsaleschannels.
Thirdly,theCompanyre-markedbrandpositioning,focusedonstrategicbrandsandimprovedbrandmanagersystem.TheCompanydividedthebrandsofallkindsofalcoholicproductsintofourlevels,strategicbrand,keybrand,cooperativebrandandindependentbrand,accordingtotheresourceinput,teaminputandfuturepursuitgoals.Amongthem,thestrategicbrandisthebrandbuiltwiththestrengthofthewholecompany,whichwillbepromotedbythemainsalesteamandisthemainbrandforfuturesalesgrowth;thekeybrandisthebrandthatremainsthecurrentinvestmentandpoliciesbasicallyunchanged;thecooperativebrandisthebrandthatthecompanydoesnotinvestinresourcesandbasicallydoesnotusethepowerofthesalesteam,whichgrowsmainlyinvirtueofexternalforcesandthroughactivelyseekingcooperationwithlargebusinessmen.Fordomesticwine,theCompanyformed7brandmanagersystems,containingMoser,AFIPandGoldenIceValley,CastelandBaronBalbon,RenaCastle,NobleDragon,ZenithwirlandJ-Lormin.ForBrandy,theCompanyformedamarketingdepartmentsystemforfourmajorbrandsincludingKoya,Five-star,MminniandPagese.Forimportedwine,theCompanyhasformedfourbrandteamsincludingKilikanoon,Indomita,AtrioandMirefleurs.TheCompanyreviewed,summarized,evaluatedandimprovedthemarketingcontentsprovidedbyeachbrandmanagerinordertopracticallyguidethemarket,preliminarilyimprovingthecreationandimplementationofmarketingcontentsofeachbrandsystem.Fourthly,theCompanycorrectlyunderstoodthemarketdevelopmentsituationandfurtherimprovedthemarketingsystem.Duringthereportperiod,withtherapiddevelopmentofITandthepushfromCOVID-19,“onlineshopping”acceleratedtoreplace“offlineshopping”,“experientialscenario”acceleratedtoreplace“traditionalphysicalshop”,“onlinecustomeracquisitionmode”acceleratedtoreplace“traditionalcustomeracquisitionmode”,and“onlineoffice”acceleratedtoreplace“traditionaloffice”.Inordertobetteradapttothenewmarketdevelopmenttrends,whileconsolidatingtheadvantagesoftraditionalchannels,theCompanyvigorouslypromoteddigitalmarketingtransformation,madebetteruseofblockchaintechnology,exploitednewwaysforconsumerstointeractdeeplyonlineandwidelyattractmembercustomersbyvirtueofthebrandappletandSmartRetailMallappletdevelopedbyTencentinordertofurtherenhancecustomerstickiness,empowerdistributors,conductofflinediversionforthem,providebigdataanalysisforregionalconsumersandacceleratetheintegrationofonlineandofflinebusinesses.Adoptingtheideaof“Establishingimagesandmaintainingpricesystemfornationwidebrands,focusingonsalesofbrandsownedbyE-commercecompany”,forNobleDragon,theCompanyproposedtoadopttheonlinemodeof“1+4”thatmadethesalesinexistingE-commercecompanycontinuegrowingstrongerandbiggerandnewlydevelopedfourmajoronlineenterprisesandlaunchedfourindividualsetsofproductstobesoldonline;forBrandyandZenithwirl,theCompanyadoptedthemodeof“MainlybasedonbigonlineenterprisesandsupplementedbytheE-commercecompany”tostrivetoexpandthescaleofonlinesales.Fifthly,theCompanycontinuedstrengtheningqualitymanagementandcontinuouslyimprovedproductquality.Inaccordancewiththequalityimprovementprogramme,theCompanyincreasedinvestmentinkeylinksandkeyequipmentaffectingproductquality.Itestablishedbrandwinemakersystem,completedtheselectionandappointment,salarysettingsandworkproceduressettingsofwinemakersatalllevels,clarifiedthecorerequirementsofwinemakersatalllevelsinproductshelflife,blindtastingresult,internationalawards,externalqualityandpresentationability,andsignedworkcommitmentletterwitheverywinemakertofurtherclarifyingthequalityimprovementresponsibilitiesofwinemakers,givingfullplaytotheprofessionalpotentialofwinemakers.Itstrengthenedtheintegrationof
bothglobalrawmaterialsandglobalwinemakersandselectedfirst-classoutsourcingdesigncompaniesforproductappearancedesigntoreachtherequirementof“notstunning,nottopublic”.Besidesthat,theCompanyestablishedadualqualityevaluationsystemofinternalqualitymanagementdepartmentsplusexternalconsumerstoevaluatethequalityinanall-aroundwayandconnectedtheevaluationresultswiththeincomeofthepersoninchargeofproduction.Sixthly,theCompanystrengthenedfinancialmanagementandinternalaudittopreventoperationalrisks.Duringthereportperiod,theCompanymainlystrengthenedcapitalmanagement,budgetmanagementandtaxplanning,reducedcapitaloccupation,improvedcapitalturnoverefficiencyandenhancedthepertinenceandeffectivenessofbudgetmanagement.Itfurtherimprovedthefinancialmanagementsystemforoverseasenterprisesandfocusedonmonitoringthecashflowtoavoiddebtrepaymentrisks.Itconductedspecialauditinkeyexpenses,conductedoff-officeauditinkeypersonnel,conductedsettlementauditintechnologicaltransformationandinfrastructureprojects,andinvestigatedpersonnelaccountableforeconomiclosses,ensuringthefullimplementationoftheCompany’smanagementandcontrolsystem.Italsoconductedacomprehensiveinvestigation,statisticandanalysistotheinventoryofChangyuproductsheldbydistributors,whichprovidedimportantdecision-makingbasisforoperatingmanagement.Seventhly,theCompanyacceleratedthereformofemploymentsystemandimprovedthecapacityoftheteam.Duringthereportperiod,theCompanyimplementedtheemploymentstrategyof“Strictlycontrolthenumberofnewrecruitsandreleasetherestrictionindemission”,raisedthestandardsforemployingnewrecruits,adoptedthemodeof“survivalofthefittest”,andimprovedtheoverallcapacityofthesalesteamthrough“upgrade,simplificationandabsorption”.InordertoachievethebusinessobjectivessetbytheCompanyatthebeginningoftheyear,theCompanywillfocusonfollowingworkinthesecondhalfof2020:
Firstly,theCompanywilltake“pursuingmarkethealth”asthetopprioritytoimplementdistributor-levelcodescanningduringinboundandoutboundandestablishthetimelyreportingandmonitoringsystemfordistributors’inventory.Itwillestablish“limitedquantity”and“reducedquantity”rulestodistributorssellingcoreproducts,whichwillbeassociatedwithcrossregionsales,salesatlowpriceandonlinesalesandsoon.Inaddition,theCompanywillstrengthentheflightauditinallopatricwarehouses,costanddistributors’inventory.Itwillalsovigorouslycontinuepromotingtheorder-drivensystemtopreventmaliciouscrossregionsales,salesatlowpriceandillegalonlinesalessoastomaintaintheoverallstabilityandsmoothnessoftheCompany’ssalessystem.Secondly,theCompanywillfurtherclarifybrandandproductpositioning,clearlydividestrategicbrands,keybrands,cooperativebrandsandindependentbrands,formulatemarketingschemebasedon“lifetaste+healthconcepts+consumptionguidance”,distributemarketresourcesonthebasisofbrandpositioninganddowellinbrandbuildingandnewproductmarketcultivationinordertobetterplaytheroleofdifferentbrandsinpromotinganddrivingproductsales.Thirdly,theCompanywillstrengthenthemarketingassessment,determinemarket
personnel’sincome,promotionanddismissionthroughconsideringthemarkethealthdegreeandtheindicatorassessmentresults,adheretotheassessmentofproportionofsalaryinsalesamountandproportionofsalesexpenseinpre-taxsalesamount,andpromotetheintegrationofregionallogisticsanddistributioncenterinordertobettercontrolthemarketcosts.Fourthly,theCompanywillfurtherimprovethebrandwinemakersystemandcontinuesignificantlyimprovingproductquality.Itwilltakethebest-sellingproductindomesticandoverseasatthesimilarpriceasthebenchmark,strivetorealizeacomprehensivesurpassinginproductqualityandcostperformance.Fifthly,theCompanywillacceleratethepaceofdigitalmarketingtransformation,workcloselywithTencentandotheroutsourcingunitstodowellintheproductionofproductsintegrating“anti-cross-region-salescode+marketingcode+anti-counterfeitingcode”,launchbrandappletandSmartRetailMallappletandstrengthencooperationwithmajoronlinebusinesssoastoconstantlyexpandthesalesscaleoftheCompany’sonlineproducts.Sixthly,theCompanywillimplementtheYouthExcellentTalentPlanandadoptthewayof“tutorleadingapprentices”fortrackingandtrainingtoprovidemorejobexchangesandmarketpracticeopportunitiesforoutstandingtalents,whichwillenhanceworkingabilityandbroadenpromotionchannels.Seventhly,theCompanywillscientificallyformulatetheprocurementplanofgrapesandotherrawmaterialsaccordingtotheindustrydevelopmenttrendandtheCompany’sfuturedevelopmentinordertofullycompletetheprocurementworkofrawmaterialsthisyear.
2.AnalysisofmainbusinessPleasereferto“1.Summarization”in“ManagementDiscussionandAnalysis”.Changeinmajorfinancialdataonyear-on-yearbasis
Unit:CNY
Inthereportperiod
| Inthereportperiod | Inthesameperiodoflastyear | Moreorless(%) | Reasonforchanges | |
| Operatingrevenue | 1,401,606,792 | 2,558,274,785 | -45.21% | Mainlyowingtotheyear-on-yeardecreaseinsalesvolumeaffectedbyCOVID-19epidemic |
| Operatingcosts | 574,650,677 | 936,252,225 | -38.62% | Mainlyowingtotheyear-on-yeardecreaseinsalesvolumeaffectedbyCOVID-19epidemic |
| Salesexpenses | 250,531,046 | 591,970,801 | -57.68% | Mainlyowingtotheyear-on-yeardecreaseinmarketingactivitiesandmarketinginputaffectedbyCOVID-19epidemic |
| Administrationexpense | 113,069,869 | 155,552,312 | -27.31% | Mainlyowingtotheyear-on-yeardecreaseinemployeecompensation,repairchargeandadministrativeexpenses |
| Financialexpense | 11,961,102 | 8,789,583 | 36.08% | Mainlyowingtothesignificant |
year-on-yearincreaseinlong-termloan
| year-on-yearincreaseinlong-termloan | ||||
| Incometaxexpense | 109,689,969 | 210,281,578 | -47.84% | Mainlyowingtothesignificantyear-on-yeardecreaseintotalprofitcausedbythereduceinprofitabilityaffectedbyCOVID-19epidemic |
| Netcashflowfromoperatingactivities | -29,652,821 | 499,476,006 | -105.94% | Mainlyowingtothesignificantyear-on-yeardecreaseinreceivedcashfromsellingproductsandprovidinglaborserviceaffectedbyCOVID-19epidemic |
| Netcashflowfrominvestmentactivities | -39,726,131 | -114,534,608 | 65.32% | Mainlyowingtothesignificantyear-on-yeardecreaseinthecashoutflowforinvestmentactivitiesincludingpurchaseandconstructionoffixedassetsandfixedtimedepositetc |
| Netcashflowfromfinancingactivities | 4,704,625 | -18,128,357 | 125.95% | Mainlyowingtotheyear-on-yearincreaseinreceivedcashfromobtainingbankloan |
| Netincreasedamountofcashandcashequivalents | -64,982,286 | 366,866,743 | -117.71% | Mainlyowingtothesignificantyear-on-yeardecreaseinreceivedcashfromsellingproductsandprovidinglaborserviceaffectedbyCOVID-19epidemic |
WhetherthereisanymajorchangefortheCompany’sprofitstructureorprofitsourceduringthereportperiod
□Available?NotavailableThereisnomajorchangefortheCompany’sprofitstructureorprofitsourceduringthereportperiod.Compositionofoperatingrevenue
Unit:CNY
| Thisreportperiod | Thesameperiodoflastyear | Year-on-yearincreaseordecrease(%) | |||
| Amount | Proportioninoperatingrevenue | Amount | Proportioninoperatingrevenue | ||
| Totaloperatingrevenue | 1,401,606,792 | 100% | 2,558,274,785 | 100% | -45.21% |
| Sector-classified | |||||
| Sectorofliquorandalcoholicbeverage | 1,401,606,792 | 100% | 2,558,274,785 | 100% | -45.21% |
| Product-classified | |||||
| Wine | 993,972,425 | 70.92% | 1,928,554,268 | 75.38% | -48.46% |
| Brandy | 372,909,239 | 26.61% | 563,451,068 | 22.02% | -33.82% |
| Tourism | 22,217,264 | 1.59% | 42,604,382 | 1.67% | -47.85% |
Others
| Others | 12,507,864 | 0.89% | 23,665,067 | 0.93% | -47.15% |
| Area-classified | |||||
| Domestic | 1,183,622,477 | 84.45% | 2,330,780,056 | 91.11% | -49.22% |
| Overseas | 217,984,315 | 15.55% | 227,494,729 | 8.89% | -4.18% |
Thecasesofindustry,productorareaaccountingforover10%intheCompany’soperatingrevenueoroperatingprofit?Available□Notavailable
Unit:CNY
| Operatingrevenue | Operatingcost | Grossmargin | Year-on-yearincreaseordecrease(%)ofoperatingrevenue | Year-on-yearincreaseordecrease(%)ofoperatingcost | Year-on-yearincreaseordecrease(%)ofgrossprofitrate | |
| Sector-classified | ||||||
| Sectorofliquorandalcoholicbeverage | 1,401,606,792 | 574,650,677 | 59% | -45.21% | -38.62% | -4.40% |
| Product-classified | ||||||
| Wine | 993,972,425 | 397,080,517 | 60.05% | -48.46% | -41.62% | -4.68% |
| Brandy | 372,909,239 | 164,881,016 | 55.79% | -33.82% | -28.22% | -3.45% |
| Tourism | 22,217,264 | 6,492,009 | 70.78% | -47.85% | -47.25% | -0.33% |
| Others | 12,507,864 | 6,197,135 | 50.45% | -47.15% | -56.10% | 10.10% |
| Area-classified | ||||||
| Domestic | 1,183,622,477 | 442,340,877 | 62.63% | -49.22% | -44.09% | -3.43% |
| Abroad | 217,984,315 | 132,309,800 | 39.30% | -4.18% | -8.84% | 3.10% |
UndertheconditionthatthestatisticalcaliberoftheCompany’smainbusinessdataisadjustedduringthereportperiod,theCompany’smainbusinessdataadjustedonthebasisofcaliberattheendofreportperiodinrecentoneperiod.□Available?NotavailableExplanationonthecausesofover30%year-on-yearchangesoftherelatedcomparisondata?Available□NotavailableDuringthereportperiod,theCompany’soperatingrevenueandoperatingcosts,aswellastheoperatingrevenueandoperatingcostsofwine,brandy,tourismanddomesticbusiness,alldecreasedsignificantlyoverthesameperiodoflastyear,mainlyduetothedeclineinthesalesvolumeofproductsaffectedbyCOVID-19epidemic.
3.Analysistonon-mainbusiness□Available?Notavailable
4.Assetsandliabilitiessituation
1)Majorchangesinassets
Unit:CNY
Theendofthisreportperiod
| Theendofthisreportperiod | Theendofthesameperiodoflastyear | Proportionincreaseordecrease(%) | Explanationformajorchanges | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Monetaryfunds | 1,476,207,055 | 11.11% | 1,848,632,953 | 13.81% | -2.70% | Mainlyowingtotheyear-on-yeardecreaseinthecashinflowforoperatingactivitiesaffectedbyCOVID-19epidemic |
| Accountreceivable | 167,738,633 | 1.26% | 186,131,192 | 1.39% | -0.13% | Nomajorchange |
| Inventory | 2,936,133,260 | 22.10% | 2,606,781,436 | 19.48% | 2.62% | Mainlyowingtotheyear-on-yearincreaseinwork-in-processincludingbulkwineattheendofreportperiod |
| Investmentrealestate | 28,344,687 | 0.21% | 30,560,470 | 0.23% | -0.02% | Nomajorchange |
| Long-termequityinvestment | 42,810,445 | 0.32% | 0 | 0% | 0.32% | MainlyowingtotheestablishmentofSASL&MHOLDINGS |
| Fixedassets | 5,818,499,845 | 43.79% | 5,684,612,653 | 42.48% | 1.31% | Mainlyowingtothetransfer-inofconstructioninprocessduringthereportperiod |
| Constructioninprocess | 647,036,593 | 4.87% | 789,872,373 | 5.90% | -1.03% | Mainlyowingtothetransferofconstructioninprocessintofixedassetsduringthereportperiod |
| Short-termborrowing | 737,183,701 | 5.55% | 678,170,667 | 5.07% | 0.48% | Mainlyowingtotheincreaseinshort-termbankloaninthesecondhalfyearoflastyear |
| Long-termloan | 218,613,336 | 1.65% | 165,949,250 | 1.24% | 0.41% | Nomajorchange |
2)Measuringassetsandliabilitiesatfairvalue□Available?Notavailable
3)LimitationsofassetsrightsuptotheendofthereportperiodForthelimitationsofassetsrightsuptotheendofthereportperiod,pleaserefertoAnnouncementonExternalGuarantee(Announcementno.:2016-temporary021),AnnouncementonExternalGuarantee(Announcementno.:2018-temporary020),AnnouncementonExternalGuarantee(Announcementno.:2019-temporary038)andAnnouncementonGuaranteeprovidedbySpanishAtrioCompanyforBankLoan(Announcementno.:2020-temporary013)disclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/).
5.Investmentsituationanalysis
1)Overallsituation?Available□Notavailable
Amountofinvestmentduringthereport
period(CNY)
| Amountofinvestmentduringthereportperiod(CNY) | Amountofinvestmentinthesameperiodoflastyear(CNY) | Extentofchange |
| 180,460,000 | 210,000,000 | -14.07% |
2)Situationofmajorequityinvestmentsacquiredduringthereportperiod?Available□Notavailable
Unit:CNY
| Nameoftheinvestedcompany | Mainbusinesses | Investmentmode | Investmentamount | Shareholdingratio | Capitalsource | Partners | Investmenthorizon | Producttype | Progressuptothebalancesheetdate | Estimatedprofit | Investmentprofitandlossforcurrentperiod | Whetherornottoprosecute | Disclosuredate | Disclosureindex |
| HaciendaYVinedosMarques | Productionandsalesofwines | Acquisition | 40,460,000 | 15% | Self-owned | Completed | 0 | 0 | No | April24th,2020 | AnnouncementonAcquiring |
DelAtrio,SL
| DelAtrio,SL | PartialEquityofSpanishAtrioCompany(announcementnumber:2020-Temporary14)disclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO | |||||||||||||
| Total | - | - | 40,460,000 | - | - | - | - | - | - | 0 | 0 | - | - | - |
3)Situationofongoingmajornon-equityinvestmentsduringthereportperiod?Available□Notavailable
Unit:CNY
| Projectname | Investmentmode | Whetheritbelongstofixed | Involvedindustry | Investmentamountduringthe | Accumulatedactualinvestment | Capitalsource | Processofproject | Estimatedincome | Accumulatedrealizedincomeup | Reasonsforunreached | Disclosuredate | Disclosureindex |
assetsinvestment
| assetsinvestment | reportperiod | amountuptotheendofthereportperiod | totheendofthereportperiod | planningscheduleandestimatedincome | ||||||||
| ConstructionprojectofYantaiChangyuInternationalWineCityblendingandcoolingcenter | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 52,760,000 | 1,679,054,100 | Ownedfund | 100% | 0 | 0 | —— | 2017.04.22 | PleaserefertoAnnouncementonResolutionofSeventhSessionBoardofDirectors4thMeeting,AnnouncementonResolutionofSeventhSessionBoardofDirectors8thMeeting,AnnouncementonResolutionofSeventhSessionBoardofDirectors10thMeetingandAnnouncementonResolutionofEighthSessionBoardof |
| ConstructionprojectofYantaiChangyuInternationalWineCitybottlingcenter | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 79,560,000 | 1,083,760,000 | Ownedfund | 100% | 0 | 0 | —— | 2017.04.22 | |
| ConstructionprojectofYantaiChangyu | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 0 | 462,677,200 | Ownedfund | 100% | 0 | 0 | —— | 2017.04.22 |
Directors4th
MeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/)
| InternationalWineCitylogisticscenter | Directors4thMeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/) | |||||||||||
| ConstructionprojectofChangyugrapeandwineresearchinstitute | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 0 | 122,974,800 | Ownedfund | 85% | 0 | 0 | —— | 2017.04.22 | |
| Constructionprojectoftreasurewinechateau | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 0 | 128,820,000 | Ownedfund | 75% | 0 | 0 | —— | 2017.04.22 | |
| ConstructionprojectofChateauKoyabrandy | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 0 | 147,329,000 | Ownedfund | 85% | 0 | 0 | —— | 2017.04.22 | |
| OakBarrelProcurementProject | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 0 | 0 | Ownedfund | 0% | 0 | 0 | —— | 2020.04.24 | |
| Constructionprojectofindustrial | Self-constructed | Yes | Liquorandalcoholicbeverage | 850,000 | 41,300,000 | Ownedfund | 100% | 0 | 0 | —— | 2018.04.20 |
productionSAPinformation
| productionSAPinformation | industry | |||||||||||
| ProcurementprojectofautomaticuniblocequipmentforYantaichateau | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 4,650,000 | 4,650,000 | Ownedfund | 100% | 0 | 0 | —— | 2018.04.20 | |
| Constructionprojectofchangyusuppliermanagementplatformandequipmentmanagementplatform | Self-constructed | Yes | Liquorandalcoholicbeverageindustry | 2,180,000 | 2,180,000 | Ownedfund | 60% | 0 | 0 | —— | 2018.04.20 | |
| Total | — | — | — | 140,000,000 | 3,672,745,100 | — | — | 0 | 0 | —— | -- | -- |
4)Financialassetsmeasuredatfairvalue
□Available?Notavailable
5)Financialassetsinvestment
(1)Securityinvestment
□Available?NotavailableThereisnosecurityinvestmentfortheCompanyduringthereportperiod.
(2)Derivativeinvestment
□Available?NotavailableThereisnoderivativeinvestmentfortheCompanyduringthereportperiod.
6.Saleofmajorassetsandequities
1)Saleofmajorassets□Available?NotavailableThereisnosaleofmajorassetsduringthereportperiod.
2)Saleofmajorequity□Available?Notavailable
7.Analysistothemajorholdingandjointstockcompanies?Available□NotavailableSituationofmainsubsidiariesaswellasjointstockcompaniesaffectingover10%oftheCompany’snetprofit
Unit:CNY
Company
| Company | Company | Mainbusiness | Registeredcapital | Totalassets | Netasset | Operation | Operation | NetProfit |
name
| name | type | revenue | profit | |||||
| ChateauChangyuCastelCo.,Ltd.YANAI | Subsidiary | Development,productionandsalesofwineandsparklingwineaswellasthetourismservice | USD5million | 243,749,063 | 80,551,417 | 15,274,042 | -444,167 | -416,327 |
| ChateauChangyuAFIPGlobalWineCo.,Ltd. | Subsidiary | Development,productionandsalesofbrandyandwine | CNY642.75million | 691,598,867 | 655,545,910 | 50,688,043 | -1,813,776 | -2,919,024 |
| ChateauLiaoningChangyuIceWineCo.,Ltd. | Subsidiary | Productionoficewine | CNY59.6873million | 71,856,647 | 44,937,960 | 7,365,586 | -4,517,358 | -4,410,928 |
| HaciendaYVinedosMarquesDelAtrio,SL | Subsidiary | Productionandmanagementofwineandotherliquors | EUR2.385732million | 509,150,792 | 137,006,195 | 130,982,536 | 12,630,036 | 10,940,963 |
| IndomitaWineCompanyChile,SpA | Subsidiary | Productionandmanagementofwineandotherliquors | USD47.19million | 504,027,375 | 363,463,691 | 78,507,227 | 2,732,103 | 3,664,211 |
| KilikanoonEstatePtyLtd. | Subsidiary | Productionandmanagementofwineandotherliquors | AUD6.529221million | 167,190,085 | 82,374,255 | 18,928,910 | 1,271,810 | 890,266 |
Acquisitionanddisposalofsubsidiariesduringthereportperiod?Available□Notavailable
| Companyname | ModeofAcquisitionanddisposalofsubsidiariesduringthereportperiod | Effectonoverallproductionandmanagementaswellasperformance |
| YantaiChangyuCulturalTourismDevelopmentCo.,Ltd. | Transferofequityastransferee | AsasunriseindustrythatChinastronglysupports,tourismhasgreatpotentialfordevelopment.TheCompany’sindustrialtourismbusinesshasafavorabledevelopmentprospect.Beforethen,duetoseparateoperations,itfailstoformajointforce,restrictingdevelopmentandgrowthofbothparties’tourismbusiness.Throughthetransferofequityastransferee,itcouldbetterintegratebothparties’tourismbusiness,enrichandimprovetourismproductsandcreatesynergisticeffects,acceleratingandpromotingthedevelopmentoftheCompany’stourismbusiness |
Explanationformainholdingandjointstockcompanies
Duringthereportperiod,ChateauChangyuCastelCo.,Ltd.YANAI,ChateauChangyuAFIPGlobalWineCo.,Ltd.andChateauLiaoningChangyuIceWineCo.,Ltd.incurredoperatinglosses,mainlyowingtothereduceintheproductsalesvolumeaffectedbyCOVID-19.OwingthatabovecompaniessoldtheirproductstotheCompany’ssalesunitsandthentheCompany’ssalesunitssoldproductstoexternalclientsandcustomers,thelossesofabovecompaniesareonlythosearisingfromitsownsaleswithintheCompany.Seenfromtheoverallsituation,ifcombiningtheprofitobtainedfromtheexternalsalesoftheCompany'ssalesunits,theCompany'sproductionandoperationofabove-mentionedcompanies’productsareallprofitable.
8.SituationofstructuredsubjectcontrolledbytheCompany
□Available?Notavailable
9.ForecastfortheoperatingperformancefromJanuarytoSeptemberof2019Cautionandexplanationforthepredictionthatthecumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodcouldbeinalossortherewillbeinagreatchangecomparedwiththesameperiodoflastyear.
□Available?Notavailable
10.RisksfacedwithbytheCompanyandresponsemeasures
1)RisksinpricefluctuationofrawmaterialsGrapesaretheCompany’smainrawmaterials.Thegrape’syieldandqualityareaffectedtoacertainextentbythenaturalfactorssuchasdrought,wind,rain,frostandsnow.TheseforcemajeurefactorsgreatlyinfluencetheprocurementquantityandpriceofrawmaterialsandaddtheuncertaintytotheCompany’sproductionandoperation.Therefore,theCompanywilllowerthefluctuationrisksofgrapequalityandpricebymeansofstabilizingtheareaofself-rungrapebases,strengtheningthemanagementofgrapebasesandoptimizingthelayoutofgrapebases.
2)RisksinuncertaintyofmarketinputandoutputTocopewithincreasinglyfiercemarketcompetitionandtomeettheneedsformarketdevelopment,theCompanywillmaintaincertainmarketinput.Theproportionofsalesexpenseintheoperationrevenueisalsohigh.ThesituationofinputandoutputwillaffecttheCompany’sbusinessperformancetoagreatextentandtheremightoccurtheriskthatpartialinputmaynotreachtheexpectations.Therefore,theCompanywillstrengthenmarketresearchandanalysis,enhancemarketforecastaccuracyandcontinueperfectingtheinput-outputevaluationsystemtoensurethemarketinputtoreachtheexpectations.
3)RisksinproducttransportationTheCompany’sproductsarefragileandsoldtoallovertheworldmostlybyseatransportation,railwaytransportationandroadtransportation.Thepeakseasonofsalesisusuallyincoldwinterandisclosetothespringfestivalwhenthereisagreatneedinthemarket.However,atthistime,thedomestictransportationdepartmentsmaybeoverloadedbytheflowofpeopleandlogistics,causingseriousshortageoftransportationcapacity.In
additiontonaturalandhumanfactorssuchassnow,iceandtrafficaccidentsandsoon,thereisapossibilitythatitisdifficulttosafelyandtimelytransportproductstothemarket,thusfacingthepotentialriskofmissingsalespeakseason.Therefore,thecompanywillstrivetoreducesuchrisksbydoingwellsalesforecastsandtheconnectionbetweenproductionandsales,rationallyarrangingproductionandtransportationroutesandreasonablyincreasingoff-siteinventorybeforethecomingofpeakseasonandsoon.
4)RisksininvestmentfaultsAccordingtotheprogramme,theCompanyhasbasicallycompletedtheproductionlayoutathomeandabroad.TheinvestmentamountofYantaiChangyuIndustrialPark(inotherwordsYantaiChangyuInternationalWineCity)islarge,buttherearemanyuncertaintiesindomesticwinemarket,whichmaylengthentheinvestmentrecoveryperiod.Moreover,theintegrationandmanagementofoverseasM&Aprojectsaredifficultanditmightalsobedifficultforsomeindividualprojectstoobtaintheexpectedinvestmentincomeowingtobeingaffectedbyvariousfactors.Therefore,theCompanywillmakesufficientdemonstrationandscientificdecisiononinvestmentprojectsandstrivetoreduceandavoidinvestmentrisks.
5)RiskinmarketfluctuationAffectedbyCOVID-19epidemic,theCompany’sofflinechannelshavebeenseverelyimpacted,traditionalmarketingmethodsweredifficulttobecarriedouteffectively,andproductdemandshaveshrunksharply.TheCompanywillacceleratethepaceofdigitalmarketingtransformation,vigorouslyexpandonlinesalesbusinessandpromoteproductsales.
V.Majorissues
1.InformationfortheShareholders’MeetingandInterimShareholders’Meetingheldduringthereportperiod
1)InformationfortheShareholders’Meetingduringthereportperiod
Session
| Session | Meetingtype | Participationratioofinvestors | Conveningdate | Disclosuredate | DisclosureIndex |
| 2019AnnualShareholders’Meeting | Annualshareholders’meeting | 58.32% | 2020.05.27 | 2020.05.28 | AnnouncementonResolutionof2019AnnualShareholders’MeetingdisclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFO |
| FirstInterimShareholders’Meetingin2020 | Interimshareholders’meeting | 58.33% | 2020.06.19 | 2020.06.20 | AnnouncementonResolutionofFirstInterimShareholders’Meetingin2020disclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFO |
2)RequestforconveningInterimShareholders’Meetingbypriorityshareholdersowingrecoveredvotingright
□Available?Notavailable
2.Situationofprofitdistributionandcapitalizationofcapitalreserveintosharecapitalduringthereportperiod
□Available?NotavailableTheCompanyplansnottodistributecashdividendsorgivebonussharesormakecapitalizationofcapitalreserveintosharecapital.
3.CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirersandtheCompanyandotherrelatedcommitmentpartieshaveimplementedduringthereportperiodandhavenotimplementeduptotheendofthereportperiod?Available□Notavailable
Commitments
| Commitments | Commitmentparty | Commitmenttype | Commitmentcontent | Commitmenttime | Commitmentperiod | Implementation |
| Commitmentsatequityreformation | ||||||
| Commitmentsmadeinacquisitionreportorequitychangereport | ||||||
| Commitmentsatassetrestructuring | ||||||
| Commitmentsattheinitialpublicofferingor | YantaiChangyuGroupCo.,Ltd. | Solvehorizontalcompetition | Non-horizontalcompetition | May18th,1997 | Forever | Hasbeenperforming |
refinancing
| refinancing | YantaiChangyuGroupCo.,Ltd. | Cleartheuseoftrademarkusefee | AccordingtoTrademarkLicenseContract,thetrademarkusefeeofChangyuandothertrademarkspaidbythisCompanytoYantaiChangyuGroupCo.,Ltd.everyyearismainlyusedforadvertisingChangyuandothertrademarksandthecontractualproductsbyYantaiChangyuGroupCo.,Ltd.. | May18th,1997 | FromMay18th,1997toApril4th,2019 | AccordingtoTrademarkLicenseContract,thetrademarkusefeeannuallychargedbyYantaiChangyuGroupCo.,Ltd.shallbemainlyusedtopublicizetrademarksincludingChagnyuandcontractualproducts.Except2013to2017duringwhichthecommitmentwasnotstrictlyperformed,YantaiChangyuGroupCo.,Ltd.hasbeenperformingthecommitment. |
| Equityincentivecommitments | ||||||
| CommitmentsatmiddleandsmallshareholdersoftheCompany | YantaiChangyuGroupCo.,Ltd. | Compensatingunredeemedcommitment |
| April4th,2019 | FromApril4th,2019toDecember31st,2023 | Hasbeenperforming |
insufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence.
| insufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence. | |||
| Commitmentundertimelyimplementationornot | No | ||
| Detailedexplanationforspecificreasonsofunimplementedcommitmentaswellasnextworkplanifcommitmentisnotcompletedinthecommitmentperiod | AccordingtotheTrademarkLicenseContract(hereafterreferredtoas“theContract”),ChangyuGrouppromisesthatthetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksandcontractualproducts.Butabove-mentioned‘mainly’isnotaspecificnumber,whichiseasytocausedivergenceduetodifferentunderstandingandleadstoproblemappearanceduringtheimplementationprocess.From2013to2017,ChangyuGroupcollectedatotalofCNY420,883,902trademarkusefee,ofwhich51%wasusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY214,650,790.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY50,025,181,withabalanceofCNY164,625,609.In2018and2019,thetrademarkusefeecollectedof2017and2018isCNY155,623,907,ofwhich51%isusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY79,368,193.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY12,225,187,withabalanceofCNY67,143,006.Since2013,theaccumulatedbalanceofChangyuGroupusingtopublicizetrademarksincludingChangyuandcontractproductsisCNY231,768,615.ChangyuGrouppromisesthatthefour-yeartrademarkusefeefrom2019to2022willbeusedforoffset.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence.IfChangyuGroupisnotabletoimplementtheabove-mentionedcommitmentowingtovariousreasons,theCompanywilltimely | ||
superviseandurgeChangyuGrouptofulfillitscommitmentandrequestChangyuGrouptoraisefundsthroughbankloaning,assetssalesandequitysalesetcinordertoimplementthecommitment.Forotherdetails,pleaserefertoAnnouncementonCommitmentIssuesofYantaiChangyuGroupCompanyLimiteddisclosedbytheCompanyonApril4
th,2019.
4.TheappointmentanddismissalofcertifiedpublicaccountantsWhetherthesemi-annualreporthasbeenaudited□Yes?NoThesemi-annualreporthasnotbeenaudited.
5.Explanationfromtheboardofdirectorsandtheboardofsupervisorsforthe“Non-standardAuditReport”duringthisreportperiod?Available?Notavailable
6.Explanationfromtheboardofdirectorsforthe“Non-standardAuditReport”oflastyear?Available?Notavailable
7.Issuesrelatedwithbankruptcyreorganization□Available?NotavailableTherearenorelatedissuesofbankruptcyreorganizationhappenedattheendofthereportperiod.
8.LitigationIssue
Materiallitigationandarbitration□Available?NotavailableTherearenomateriallitigationandarbitrationduringthereportperiod.OtherLitigationIssue
□Available?Notavailable
9.Questionsfrommedia□Available?NotavailableTherearenoquestionsfrommediaduringthereportperiod.
10.Penaltyandrectification
□Available?NotavailableTherearenopenaltyandrectificationduringthereportperiod.
11.CreditoftheCompany,itscontrollingshareholderandactualcontroller?Available?Notavailable
12.ImplementationoftheCompany’sequityinventiveplan,employeestockownershipplanorotheremployeeincentivemeasures
□Available?NotavailableTherearenoimplementationoftheCompany’sequityinventiveplan,employeestockownershipplanandotheremployeeincentivemeasuresduringthereportperiod.
13.Majorrelatedtransactions
1)Relatedtransactionsinrelationtoroutineoperations?Available□Notavailable
Relatedparty
| Relatedparty | Relationship | Type | Content | Pricingprinciple | Price | Amount(CNY‘0000) | Proportioninsimilartransactions | Approvedtransactionquota(CNY‘0000) | Whetherexceedingapprovedtransactionquota | Clearingform | Availablemarketpriceofsimilartransactions | Disclosuredate | Disclosureindex |
| YantaiShenmaPackagingCo.,Ltd. | Controlledbythesameparentcompany | Purchaseandmanufacturingconsignment | Purchaseandmanufacturingconsignmentofpackagingmaterials | Contractualpricing | Determinedbyagreement | 3,562 | 11.23% | 10,200 | No | Cash | No | April24th,2020 | Announcementon2020AnnualRoutineRelatedTransaction（Announcementno.:2020-Temporary08）disclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFO |
| Total | - | - | 3,562 | - | 10,200 | - | - | - | - | - | |||
| Detailsinformationaboutthereturnoflargesales | No | ||||||||||||
| Actualperformanceoftheestimatedtotalamountfordailyrelatedtransactionsthatwilloccurduringthisreportperiodbycategory(ifhave) | No | ||||||||||||
| Reasonforthebiggerdeferencebetweentransactionpriceandmarketreferenceprice(ifapplicable) | No | ||||||||||||
2)Relatedtransactionsinrelationtoacquisitionandsalesofassetsorequity
□Available?NotavailableTherearenorelatedtransactionsinrelationtoacquisitionorsalesofassetsorequityduringthereportperiod.
3)Relatedtransactionsinrelationtocommonforeigninvestment□Available?NotavailableTherearenorelatedtransactionsinrelationtocommonforeigninvestmentduringthereportperiod.
4)Relatedcreditanddebtdealings?Available□NotavailableWhetherornotexistingnon-operatingrelatedcreditanddebttransactions
□Yes?NoTherearenonon-operatingrelatedcreditanddebttransactionsduringthereportperiod.
5)Othermajorrelatedtransactions?Available□NotavailableDisclosurewebsiteofinterimreportformajorrelatedtransaction
Nameofinterimannouncement
| Nameofinterimannouncement | Disclosuredateofinterimannouncement | Nameofdisclosurewebsiteforinterimannouncement |
| Announcementon2020AnnualRoutineRelatedTransaction | April24th,2020 | http://www.cninfo.com.cn |
| AnnouncementonTransferringKoyaandotherbrandsofYantaiChangyuGroupCo.,Ltd.asTransferee | April24th,2020 | http://www.cninfo.com.cn |
| AnnouncementonTransferringFullEquityofYantaiChangyuCulturalTourismDevelopmentCo.,Ltd.asTransferee | April24th,2020 | http://www.cninfo.com.cn |
14.Non-operatingcapitaloccupyingoftheCompanybycontrollingshareholderanditsrelatedparties
□Available?NotavailableThereisnonon-operatingcapitaloccupyingoftheCompanybycontrollingshareholderanditsrelatedpartiesduringthereportperiod.
15.Majorcontractsandexecutioncondition
1)Trusteeship,contractandleaseissues
(1)Trusteeshipsituation
□Available?NotavailableThereisnotrusteeshipsituationduringthereportperiod.
(2)Contractsituation?Available□NotavailableExplanationforcontractsituationFortheCompany’scontractoperationsituationduringthereportperiod,pleasereferto“23.Otherpayables”inNote7“Notesonconsolidatedfinancialstatement”inthefinancialreportofthisreport.ProjectwhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod□Available?NotavailableTherearenocontractprojectswhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod.
(3)Leasesituation?Available□NotavailableExplanationforleasesituationOnJanuary1
st,2017,theCompanyrenewedtheSpaceLeaseAgreementwiththecontrollingshareholderYantaiChangyuGroupCompanyLimited.TheCompanyleasedthespacewith15,196.94squaremeterslocatingatNo.174ShihuiyaoRoad,ZhifuDistrict,YantaiCity.TherentperyearisCNY1.4645millionwitharentalperiodof5yearsfromJanuary1
st
,2017toDecember31
st,2021.OnJanuary1
st,2017,theCompany’ssubordinateSales&MarketingCo.ofYantaiChangyuPioneerWineCompanyLimitedBrandySalesDivisionrenewedtheSpaceLeaseAgreementwiththecontrollingshareholderYantaiChangyuGroupCompanyLimited,leasingthespacewith42,552.83squaremeterslocatingatNo.1JichangRoad,ZhifuDistrict,YantaiCityandthespacewith3,038squaremeterslocatingat56DamaRoad,ZhifuDistrict,YantaiCity,whichareallunderthenameofcontrollingshareholder.TherentofabovespacesperyearisCNY4.3935millionwitharentalperiodof5yearsfromJanuary
st
,2017toDecember31
st,2021.OnJuly1
st,2017,thisCompanysignedahouse-leasingcontractwithYantaiShenmaPackagingCompanyLimited.Accordingtothiscontract,sinceJuly1
st
,2017,thisCompanyleasedpropertytoYantaiShenmaPackagingCompanyLimitedforabusinesspurposewiththeannualrentofCNY1,626,880.ThiscontractexpiresonJune30
th
,2022.ProjectwhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod
□Available?NotavailableTherearenoleaseprojectswhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod.
2)Majorguarantee?Available□Notavailable
(1)Guaranteesituation
Unit:CNY’0000
ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries）
| ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries） | ||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiEconomicandTechnologicalDevelopmentZoneManagementCouncil | 2016.12.22 | 34,160 | 2016.12.21 | 34,160 | Mortgage;Pledge | 10years | No | No |
| Totaloftheexternalguaranteequotaapprovedduringthereportperiod(A1) | 0 | Totaloftheactualexternalguaranteeamountduringthereportperiod(A2) | 0 | |||||
| Totaloftheexternalguaranteequotaapprovedattheendofthereportperiod(A3) | 34,160 | Balanceoftheactualexternalguaranteeattheendofthereportperiod(A4) | 34,160 | |||||
| GuaranteesituationsbetweentheCompanyandsubsidiaries | ||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiChangyuWineResearchandDevelopmentCompanyLimited | 2016.12.22 | 72,176 | 2016.12.21 | 72,176 | Jointliabilityassurance;Mortgage | 10years | No | No |
| KilikanoonEstatePtyLtd. | 2018.12.05 | 8,550 | 2018.12.06 | 8,550 | Jointliabilityassurance | 5year | No | No |
Totaloftheapprovedguaranteequotatosubsidiariesduringthereportperiod(B1)
| Totaloftheapprovedguaranteequotatosubsidiariesduringthereportperiod(B1) | 0 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(B2) | 0 | |||||
| Totaloftheapprovedguaranteequotatosubsidiariesattheendofthereportperiod(B3) | 80,726 | Balanceoftheactualguaranteeforsubsidiariesattheendofthereportperiod(B4) | 80,726 | |||||
| Guaranteesituationsbetweensubsidiaries | ||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| - | - | - | - | - | - | - | - | - |
| Totaloftheapprovedguaranteequotatosubsidiariesduringthereportperiod(C1) | 0 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(C2) | 0 | |||||
| Totaloftheapprovedguaranteequotatosubsidiariesattheendofthereportperiod(C3) | 0 | Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(C4) | 0 | |||||
| TotalguaranteeamountoftheCompany（Totalofabovethreemajoritems） | ||||||||
| Totaloftheapprovedguaranteequotaduringthereportperiod（A1+B1+C1） | 0 | Totaloftheactualguaranteeamountduringthereportperiod（A2+B2+C2） | 0 | |||||
| Totaloftheapprovedguaranteequotaattheendofthereportperiod（A3+B3+C3） | 114,886 | Balanceoftheactualguaranteebytheendofthereportperiod（A4+B4+C4） | 114,886 | |||||
| Theproportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’snetasset | 11.34% | |||||||
| Among: | ||||||||
| Balanceofguaranteeforshareholders,actualcontrollersandtheirrelatedparties（D） | 0 | |||||||
Balanceofdirectorindirectdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratioismorethan70%（E）
| Balanceofdirectorindirectdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratioismorethan70%（E） | 0 |
| Amountofthepartintotalguaranteeamountthatexceed50%ofnetassets（F） | 0 |
| Totalamountoftheabove-mentionedthreeitems（D+E+F） | 0 |
| Explanationforundueguaranteesthatmightbearjointandseveralresponsibilitiesforclearingthedebtsduringthereportperiod | No |
| Explanationforviolatingdueprocesstoprovideexternalguarantee(ifhave) | No |
ExplanationonspecificsituationsofadaptingguaranteebycomplexmethodsNo.
(2)Illegalexternalguarantee
□Available?NotavailableThereisnoillegalguaranteeduringthereportperiod.
3)Financialmanagemententrustment□Available?NotavailableThereisnofinancialmanagemententrustmentduringthereportperiod.
4)Othermajorcontracts□Available?NotavailableTherearenoothermajorcontractsduringthereportperiod.
16.Situationforsocialresponsibility
1)MajorenvironmentalsituationWhetherthelistedcompanyanditssubsidiariesbelongtomajorpolluterspublishedbytheenvironmentalprotectiondepartmentYes
Nameofcompany
orsubsidiary
| Nameofcompanyorsubsidiary | Nameofmajorpollutantsandparticularpollutants | Modeofdischarge | Quantityofdischargeoutlet | Distributionsituationofdischargeoutlet | Dischargeconcentration | Implementedpollutiondischargestandard | Totalvolumeofdischarge | Totalapprovedvolumeofdischarge | Conditionofexcessivedischarge |
| LiaoningChangyuIcewineChateauCo.,Ltd. | Organizedexhaustgas,inorganizedexhaustgas,wasterwater,noise | Dischargeoutletofboilerchimneyanddischargeoutletoffactorywastewater | 2 | ConfirmedinlinewithnationalstandardGraphicalSignsforEnvironmentalProtection(GB15562.1-1995)(GB15562.2-1995) | Meetingthenationalstandards | EmissionStandardforAirPollutantsofBoiler(GB13271-2014),EmissionStandardforOdorPollutants(GB14554-93),4ainClass2ofEmissionStandardforEnvironmentalNoiseattheBoundaryof | 35m3/d | 120m3/d | No |
IndustrialEnterprises(GB12348-2008),,ComprehensiveWastewaterDischargeStandardofLiaoningProvince(DB21/1627-2008)
ConstructionandoperationofpollutionpreventionfacilitiesTheexhaustgas,SO
andNOXproducedbythiscompany'sboileraredischargedthroughceramictubedustremoversandbagdustremovers.Awastewatertreatmentstationhasbeenconstructed.Thewastewatertreatmentprocessadoptsthetreatmentprocessofhydrolysis-aerobiont.Productionwastewateranddomesticsewagearetreatedbythein-plantwastewatertreatmentstationandthendischargedintothewastewatertreatmentplantinBeidianzixiangTown.EnvironmentalimpactassessmentofconstructionprojectsandotherenvironmentalprotectionadministrativepermitsIthasbeenapprovedintheHuanhuanjianzi(2016)No.24issuedbytheEnvironmentalProtectionBureauofHuanrenManchuAutonomousCounty.EmergencyplanforemergentenvironmentalincidentTheCompanyhasformulatedacomprehensiveemergencyplanforemergentenvironmentalincident.Environmentalself-monitoringprogramTheCompanyhasformulatedacompleteenvironmentalself-monitoringprogram.OtherenvironmentalinformationthatshouldbemadepublicNoOtherrelatedenvironmentalinformationNo
2)Situationforcarryingoutsocialresponsibilityoftargetedpovertyalleviation
(1)TargetedpovertyalleviationplanNo
(2)Summaryofsemi-annualtargetedpovertyalleviationNo
(3)EffectivenessoftargetedpovertyalleviationNo
(4)SubsequentplanfortargetedpovertyalleviationNo
17.Explanationforothermajorissues
□Available?NotavailableTherearenoothermajorissuesneedtobeexplainedduringthereportperiod.
18.MajorissuesoftheCompany’ssubsidiaries
□Available?Notavailable
VI.ChangesinSharesandtheShareholders’Situation
1.Changesinshares
1)Changesinshares
Unit:share
Amountbeforethischange
| Amountbeforethischange | Changeatthistime(+,-) | Amountafterthischange | |||||||
| Amount | Percentage% | Issuingnewshare | Distributebonusshare | Transfercapitalreservetosharecapital | others | Subtotal | Amount | Percentage% | |
| 1.Unrestrictedshares | 685,464,000 | 100% | 685,464,000 | 100% | |||||
| (1)Ashares | 453,460,800 | 66.15% | 453,460,800 | 66.15% | |||||
| (2)Bshares | 232,003,200 | 33.85% | 232,003,200 | 33.85% | |||||
| 2.Totalshares | 685,464,000 | 100% | 685,464,000 | 100% | |||||
Reasonofchangesinshares
□Available?NotavailableApprovalofchangesinshares
□Available?Notavailable
Ownershiptransferofchangesinshares□Available?NotavailableImplementationprogressofsharebuy-back□Available?NotavailableImplementationprogressofreducingrepurchasedsharesbythewayofcentralizedbidding□Available?NotavailableTheinfluenceofchangesinsharesonfinancialindicatorsinthemostrecentyearandthemostrecentreportperiod,suchasbasicearningspershare,dilutedearningspershareandnetassetpershareattributabletotheCompany’scommonshareholdersandsoon□Available?NotavailableOthercontentsthattheCompanythinksnecessaryorsecuritiesregulatorydepartmentsasktodisclose.
□Available?Notavailable
2)Changesinrestrictedshares
□Available?Notavailable
2.Securitiesissuanceandlistingsituation
□Available?Notavailable
3.SituationforthenumberofshareholdersandshareholdingsoftheCompany
Unit：
share
Totalcommonshareholdersattheendofreportperiod
| Totalcommonshareholdersattheendofreportperiod | 44,334 | Totalnumberofpreferredshareholderrecoveringvotingpowerattheendofreportperiod | 0 | ||||||||
| Shareholdersholdingmorethan5%orshareholdingsofthetop10commonshareholders | |||||||||||
| NameofShareholder | Characterofshareholder | Shareholdingratio | Commonshareheldattheendofthereportperiod | Changesduringthereportperiod | Numberofrestrictedcommonshare | Numberofunrestrictedcommonshare | Pledgedorfrozen | ||||
| Sharestatus | Amount | ||||||||||
| YANTAICHANGYUGROUPCO.,LTD. | Domesticnon-state-ownedlegalperson | 50.40% | 345,473,856 | 0 | 0 | 345,473,856 | - | 0 | |||
| GAOLINGFUND,L.P. | Foreignlegalperson | 3.08% | 21,090,219 | 0 | 0 | 21,090,219 | - | 0 | |||
| CHINASECURITIESFINANCECORP | State-ownedlegalperson | 2.25% | 15,440,794 | 0 | 0 | 15,440,794 | - | 0 | |||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | Foreignlegalperson | 2.22% | 15,241,826 | 0 | 0 | 15,241,826 | - | 0 | |||
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 1.20% | 8,235,333 | -8,000 | 0 | 8,235,333 | - | 0 | |||
| HONGKONGSECURITIESCLEANINGCO.,LTD. | Foreignlegalperson | 1.14% | 7,815,014 | 5,823,273 | 0 | 7,815,014 | - | 0 | |||
| FIDELITYPURITANTRUST:FIDELITY | Foreignlegalperson | 0.93% | 6,350,762 | 0 | 0 | 6,350,762 | - | 0 | |||
SERIESINTRINSICOPPORTUNITIESFUND
| SERIESINTRINSICOPPORTUNITIESFUND | ||||||||||||
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 0.76% | 5,224,746 | 414,401 | 0 | 5,224,746 | - | 0 | ||||
| CENTRALHUIJINASSETMANAGEMENTLTD. | State-ownedlegalperson | 0.69% | 4,761,200 | 0 | 0 | 4,761,200 | - | 0 | ||||
| HAITONGINTERNATIONALSECURITIESCOMPANYLIMITED-ACCOUNTCLIENT | Foreignlegalperson | 0.60% | 4,139,187 | 1,429,492 | 0 | 4,139,187 | - | 0 | ||||
| SituationofStrategicinvestorsorgenerallegalpersonbecomingthetop10shareholdersowingtoplacingofnewshares(ifhave)(seenote3) | No | |||||||||||
| Explanationforaboveshareholders’associatedrelationshiporconcertedaction | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporconcertedactionrelationshipwiththeother9circulatingshareholders,andtherelationshipamongtheothershareholdersisunknown. | |||||||||||
| Shareholdingsoftop10commonshareholderswithunrestrictedshares | ||||||||||||
| NameofShareholders | Numberofunrestrictedsharesheldattheendofthereportperiod | Typeofshare | ||||||||||
| Typeofshare | Amount | |||||||||||
| YANTAICHANGYUGROUPCO.LTD. | 345,473,856 | A | 345,473,856 | |||||||||
| GAOLINGFUND,L.P. | 21,090,219 | B | 21,090,219 | |||||||||
CHINASECURITIESFINANCECORP
| CHINASECURITIESFINANCECORP | 15,440,794 | A | 15,440,794 |
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | 15,241,826 | B | 15,241,826 |
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | 8,235,333 | B | 8,235,333 |
| HONGKONGSECURITIESCLEANINGCO.,LTD. | 7,815,014 | A | 7,815,014 |
| FIDELITYPURITANTRUST:FIDELITYSERIESINTRINSICOPPORTUNITIESFUND | 6,350,762 | B | 6,350,762 |
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | 5,224,746 | B | 5,224,746 |
| CENTRALHUIJINASSETMANAGEMENTLTD. | 4,761,200 | A | 4,761,200 |
| HAITONGINTERNATIONALSECURITIESCOMPANYLIMITED-ACCOUNTCLIENT | 4,139,187 | B | 4,139,187 |
| Explanationforassociatedrelationshiporconcertedactionamongtop10commonshareholderswithunrestrictedsharesandbetweentop10commonshareholderswithunrestrictedsharesandtop10commonshareholders | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporconcertedactionrelationshipwiththeother9circulatingshareholders,andtherelationshipamongtheothershareholdersisunknown. | ||
| Explanationfortop10commonshareholderswhoareinvolvedinsecuritiesmargintradingbusiness | Thetop10shareholdersarenotinvolvedinsecuritiesmargintradingbusiness. | ||
WhetherornottheCompany’stop10commonshareholdersandtop10shareholderswithunrestrictedsharestakeagreedrepurchasetransactionduringthereportperiod□Yes?NoThereisnoagreedrepurchasetransactiontakenbytheCompany’stop10commonshareholdersandtop10shareholderswithunrestrictedsharesduringthereportperiod.
4.ChangesincontrollingshareholdersoractualcontrollersChangesinthecontrollingshareholdersduringthereportperiod
□Available?NotavailableThereisnoanychangeinthecontrollingshareholdersduringthereportperiod.Changesintheactualcontrollersduringthereportperiod□Available?NotavailableThereisnoanychangeintheactualcontrollersduringthereportperiod.
VII.RelatedSituationofPreferredShares□Available?NotavailableTherearenopreferredsharesduringthereportperiod.
VIII.RelatedSituationofConvertibleCorporateBonds
□Available?NotavailableTherearenoconvertiblecorporatebondsduringthereportperiod.
IX.SituationforDirectors,Supervisors,SeniorExecutives
1.Changesinshareholdingsofdirectors,supervisorsandseniorexecutives?Available?Notavailable
2.PersonnelchangesintheCompany'sdirectors,supervisorsandseniorexecutives?Available□Notavailable
Name
| Name | Position | Status | NumberofSharesheldatthebeginningperiod(shares) | Increasednumberofsharesheldinthecurrentperiod(shares) | Decreasednumberofsharesheldinthecurrentperiod(shares) | Numberofsharesheldattheendperiod(shares) | Numberofrestrictedsharesgrantedatthebeginningperiod(shares) | Numberofrestrictedsharesgrantedinthecurrentperiod(shares) | Numberofrestrictedsharesgrantedattheendperiod(shares) |
| ZhouHongjiang | Chairman | Incumbent | 0 | 25,600 | 0 | 25,600 | 0 | 0 | 0 |
| SunJian | Director,Generalmanager | Incumbent | 0 | 30,000 | 0 | 30,000 | 0 | 0 | 0 |
| Total | - | - | 0 | 55,600 | 0 | 55,600 | 0 | 0 | 0 |
Name
| Name | Position | Type | Date | Reason |
| AugustoReina | Director | Outgoing | 2020.02.20 | Dieofillness |
| WeiAnning | Independentdirector | Outgoing | 2020.05.11 | Resigningforpersonalreason |
| WangZhuquan | Independentdirector | Outgoing | 2020.05.14 | ResigningafterservingasanindependentdirectorintheCompanyfor6yearsinsuccession |
| StefanoBattioni | Director | Beelected | 2020.05.27 | BeingelectedasdirectorbytheCompany’sShareholders’Meeting |
| YuRenzhu | Independentdirector | Beelected | 2020.05.27 | BeingelectedasindependentdirectorbytheCompany’sShareholders’Meeting |
| ZhangYun | Director | Beelected | 2020.06.19 | BeingelectedasdirectorbytheCompany’sShareholders’Meeting |
X.RelatedSituationofCorporationBonds
WhetherornottherearetheCompany’scorporationbondsissuedinpublicandlistedinthestockexchange,butnotdueontheissuancedateapprovedinthesemi-annualreportorfailingtopayinfullontheduedateNo.
XI.FinancialReport
1.AuditreportWhetherthesemiannualreporthasbeenaudited
□Yes√No
2.FinancialstatementTheunitinthestatementsofthefinancialannotationsisRMBYuan.
2.1ConsolidatedbalancesheetCompilingunit:YantaiChangyuPioneerWineCo.,Ltd.June30,2020Unit:Yuan
Item
| Item | Note | June30,2020 | December31,2019 |
| Currentassets: | |||
| Monetaryfund | 7.1 | 1,476,207,055 | 1,565,783,980 |
| Settlementreserves | |||
| Lendingfunds | |||
| Tradablefinancialassets | |||
| Derivativefinancialassets | |||
| Billsreceivable | |||
| Accountsreceivable | 7.2 | 167,738,633 | 266,218,153 |
| Receivablesfinancing | 7.3 | 222,918,741 | 316,470,229 |
| Advancepayment | 7.4 | 10,200,527 | 67,707,537 |
| Premiumreceivable | |||
| Reinsuranceaccountsreceivable | |||
| Receivablereservesforreinsurancecontract | |||
| Otherreceivables | 7.5 | 25,594,801 | 24,246,812 |
| Including:Interestreceivable | 698,347 | 148,927 | |
| Dividendsreceivable | |||
| Redemptorymonetarycapitalforsale | |||
| Inventories | 7.6 | 2,936,133,260 | 2,872,410,407 |
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | 7.7 | 262,917,721 | 267,424,938 |
| Totalcurrentassets | 5,101,710,738 | 5,380,262,056 |
Item
| Item | Note | June30,2020 | December31,2019 |
| Non-currentassets: | |||
| Offeringloansandimprest | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | 7.8 | 42,810,445 | 43,981,130 |
| Otherinvestmentsinequityinstruments | |||
| Othernon-currentfinancialassets | |||
| Investmentrealestate | 7.9 | 28,344,687 | 29,714,586 |
| Fixedassets | 7.10 | 5,818,499,845 | 5,894,068,898 |
| Constructioninprogress | 7.11 | 647,036,593 | 567,478,833 |
| Productivebiologicalassets | 7.12 | 196,238,591 | 202,425,286 |
| Oil-and-gasassets | |||
| Right-of-useassets | |||
| Intangibleassets | 7.13 | 641,220,580 | 651,946,355 |
| Developmentexpenditure | |||
| Goodwill | 7.14 | 141,859,193 | 141,859,193 |
| Long-termprepaidexpenses | 7.15 | 270,769,497 | 277,595,408 |
| Deferredincometaxassets | 7.16 | 214,323,893 | 264,926,503 |
| Othernon-currentassets | 7.17 | 184,158,436 | 193,674,320 |
| Totalnon-currentassets | 8,185,261,760 | 8,267,670,512 | |
| Totalassets | 13,286,972,498 | 13,647,932,568 | |
| Currentliabilities: | |||
| Short-termloans | 7.18 | 737,183,701 | 754,313,744 |
| BorrowingsfromtheCentralBank | |||
| Loansfromotherbanksandotherfinancialinstitutions | |||
| Tradablefinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Billspayable | |||
| Accountspayable | 7.19 | 379,727,980 | 570,252,612 |
| Advancesfromcustomers | 120,609,499 | ||
| Contractliabilities | 7.20 | 100,523,260 | |
| Financialassetssoldforrepurchase | |||
| Depositsfromcustomersandinterbank | |||
| Receivingsfromvicariouslytradedsecurities | |||
| Receivingsfromvicariouslysoldsecurities | |||
| Employeeremunerationspayable | 7.21 | 139,862,928 | 234,459,116 |
| Taxesandduespayable | 7.22 | 154,572,275 | 375,169,971 |
| Otherpayables | 7.23 | 793,033,613 | 450,532,485 |
| Including:Interestpayable | 2,167,287 | 758,047 | |
| Dividendspayable | 480,819,925 | 1,366,559 | |
| Handlingchargesandcommissionspayable | |||
| Dividendpayableforreinsurance | |||
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | 7.24 | 98,996,064 | 150,826,221 |
Item
| Item | Note | June30,2020 | December31,2019 |
| Othercurrentliabilities | 13,068,024 | ||
| Totalcurrentliabilities | 2,416,967,845 | 2,656,163,648 | |
| Non-currentliabilities: | |||
| Reservesforinsurancecontracts | |||
| Long-termborrowings | 7.25 | 218,613,336 | 128,892,501 |
| Bondspayable | |||
| Including:Preferredstock | |||
| Perpetualbonds | |||
| Leaseliabilities | |||
| Long-termaccountspayable | 7.26 | 167,000,000 | 191,000,000 |
| Long-termemployeeremunerationspayable | |||
| Estimatedliabilities | |||
| Deferredincome | 7.27 | 61,772,908 | 70,701,288 |
| Deferredincometaxliabilities | 7.16 | 14,303,137 | 14,691,424 |
| Othernon-currentliabilities | 7.28 | 7,645,777 | 7,645,777 |
| Totalnon-currentliabilities | 469,335,158 | 412,930,990 | |
| Totalliabilities | 2,886,303,003 | 3,069,094,638 | |
| Owner’sequity: | |||
| Capitalstock | 7.29 | 685,464,000 | 685,464,000 |
| Otherequityinstruments | |||
| Including:Preferredstock | |||
| Perpetualbonds | |||
| Capitalsurplus | 7.30 | 565,050,422 | 565,050,422 |
| Minus:Treasurystock | |||
| Othercomprehensiveincome | 7.31 | -9,242,236 | -4,235,583 |
| Specialreserves | |||
| Surplusreserves | 7.32 | 342,732,000 | 342,732,000 |
| Generalriskpreparation | |||
| Undistributedprofit | 7.33 | 8,547,110,131 | 8,719,899,359 |
| Totalowner’sequitiesattributabletotheparentcompany | 10,131,114,317 | 10,308,910,198 | |
| Minorityequity | 269,555,178 | 269,927,732 | |
| Totalowner’sequities | 10,400,669,495 | 10,578,837,930 | |
| Totalliabilitiesandowner’sequities | 13,286,972,498 | 13,647,932,568 |
LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:GuoCuimei
2.2Balancesheetoftheparentcompany
Compilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan
| Item | Note | June30,2020 | December31,2019 |
| Currentassets: | |||
| Monetaryfund | 798,084,475 | 710,505,269 | |
| Tradablefinancialassets | |||
| Derivativefinancialassets | |||
| Billsreceivable | |||
| Accountsreceivable | 17.1 | 302,260 | 1,988,326 |
Item
| Item | Note | June30,2020 | December31,2019 |
| Receivablesfinancing | 34,212,039 | 41,679,635 | |
| Advancepayment | 33,862 | 776,539 | |
| Otherreceivables | 17.2 | 278,883,935 | 586,424,958 |
| Including:Interestreceivable | 464,614 | 90,355 | |
| Dividendsreceivable | 2,985,375 | 200,000,000 | |
| Inventories | 501,196,687 | 434,007,808 | |
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | 37,051,338 | 39,130,466 | |
| Totalcurrentassets | 1,649,764,596 | 1,814,513,001 | |
| Non-currentassets: | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | 17.3 | 7,437,422,621 | 7,432,422,621 |
| Otherinvestmentsinequityinstruments | |||
| Othernon-currentfinancialassets | |||
| Investmentrealestate | 28,920,958 | 29,714,586 | |
| Fixedassets | 250,196,215 | 261,137,072 | |
| Constructioninprogress | |||
| Productivebiologicalassets | 117,388,982 | 121,414,096 | |
| Oilandgasassets | |||
| Right-of-useassets | |||
| Intangibleassets | 63,675,337 | 64,864,913 | |
| Developmentexpenditure | |||
| Goodwill | |||
| Long-termprepaidexpenses | |||
| Deferredincometaxassets | 17,961,520 | 16,255,870 | |
| Othernon-currentassets | 1,524,700,000 | 1,427,700,000 | |
| Totalnon-currentassets | 9,440,265,633 | 9,353,509,158 | |
| Totalassets | 11,090,030,229 | 11,168,022,159 | |
| Currentliabilities: | |||
| Short-termloans | 150,000,000 | 150,000,000 | |
| Tradablefinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Billspayable | |||
| Accountspayable | 32,575,693 | 63,655,240 | |
| Advancesfromcustomers | |||
| Contractliabilities | |||
| Employeeremunerations | 57,841,188 | 70,445,847 | |
| Taxesandduespayable | 4,129,507 | 6,052,456 | |
| Otherpayables | 1,038,359,009 | 660,149,563 | |
| Including:Interestpayable | 137,671 | 181,250 | |
| Dividendspayable | 479,824,800 |
Item
| Item | Note | June30,2020 | December31,2019 |
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | |||
| Othercurrentliabilities | |||
| Totalcurrentliabilities | 1,282,905,397 | 950,303,106 | |
| Non-currentliabilities: | |||
| Long-termborrowings | |||
| Bondspayable | |||
| Including:Preferredstock | |||
| Perpetualbonds | |||
| Leaseliabilities | |||
| Long-termaccountspayable | |||
| Long-termemployeeremunerationpayable | |||
| Estimatedliabilities | |||
| Deferredincome | 7,459,789 | 9,176,315 | |
| Deferredincometaxliabilities | |||
| Othernon-currentliabilities | 3,146,706 | 3,146,707 | |
| Totalnon-currentliabilities | 10,606,495 | 12,323,022 | |
| Totalliabilities | 1,293,511,892 | 962,626,128 | |
| Owner’sequity: | |||
| Capitalstock | 685,464,000 | 685,464,000 | |
| Otherequityinstruments | |||
| Including:Preferredstock | |||
| Perpetualbonds | |||
| Capitalsurplus | 557,222,454 | 557,222,454 | |
| Minus:Treasurystock | |||
| Othercomprehensiveincome | |||
| Specialreserves | |||
| Surplusreserves | 342,732,000 | 342,732,000 | |
| Undistributedprofit | 8,211,099,883 | 8,619,977,577 | |
| Totalowner’sequities | 9,796,518,337 | 10,205,396,031 | |
| Totalliabilitiesandowner’sequities | 11,090,030,229 | 11,168,022,159 |
LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:GuoCuimei
2.3Consolidatedprofitstatement
Compilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan
| Item | Note | Sumofcurrentperiod | Sumofpriorperiod |
| 1.Totaloperatingincome | 1,401,606,792 | 2,558,274,785 | |
| Including:Operatingincome | 7.34 | 1,401,606,792 | 2,558,274,785 |
| Interestincome | |||
| Earnedpremium | |||
| Handlingfeeandcommissionincome | |||
| 2.Totaloperatingcosts | 1,040,122,175 | 1,818,822,580 | |
| Including:Operatingcosts | 7.34 | 574,650,677 | 936,252,225 |
| Interestexpenditure |
Handlingfeesandcommissionexpenditure
| Handlingfeesandcommissionexpenditure | |||
| Premiumrebate | |||
| Netamountofindemnityexpenditure | |||
| Netamountofthewithdrawnreservefundforinsurancecontract | |||
| Policybonuspayment | |||
| Amortizedreinsuranceexpenditures | |||
| Item | Note | Sumofcurrentperiod | Sumofpriorperiod |
| Taxesandsurcharges | 7.35 | 88,103,493 | 123,550,848 |
| Sellingexpenses | 7.36 | 250,531,046 | 591,970,801 |
| Administrativeexpenses | 7.37 | 113,069,869 | 155,552,312 |
| Researchanddevelopmentexpenses | 7.38 | 1,805,988 | 2,706,811 |
| Financialexpenses | 7.39 | 11,961,102 | 8,789,583 |
| Including:Interestexpenses | 14,891,310 | 9,812,560 | |
| Interestincome | 6,088,281 | 4,606,417 | |
| Plus:Otherprofit | 7.40 | 49,780,231 | 64,211,892 |
| Investmentprofit(lossislistedwith"-") | 7.41 | -1,170,685 | |
| Including:Investmentprofitforjoint-runbusinessandjointventure | -1,170,685 | ||
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome(lossislistedwith"-") | |||
| Exchangeincome(lossislistedwith"-") | |||
| Netexposurehedgeincome(lossislistedwith"-") | |||
| Incomefromfairvaluechanges(lossislistedwith"-") | |||
| Creditimpairmentloss(lossislistedwith"-") | 7.42 | 100,835 | -765,935 |
| Assetimpairmentloss(lossislistedwith"-") | 7.43 | 4,242,813 | 6,148,729 |
| Incomefromassetdisposal(lossislistedwith"-") | 7.44 | 39,641 | 1,138 |
| 3.Operatingprofit(lossislistedwith"-") | 414,477,452 | 809,048,029 | |
| Plus:Non-operatingincome | 7.45 | 4,682,230 | 3,575,914 |
| Minus:Non-operatingexpenses | 7.46 | 867,273 | 164,050 |
| 4.Totalprofits(totallossislistedwith"-") | 418,292,409 | 812,459,893 | |
| Minus:Incometaxexpenses | 7.47 | 109,689,969 | 210,281,578 |
| 5.Netprofit(netlossislistedwith"-") | 308,602,440 | 602,178,315 | |
| 5.1Classificationbyoperationcontinuity | |||
| 5.1.1Netprofitfromcontinuingoperation(netlossislistedwith"-") | 308,602,440 | 602,178,315 | |
| 5.1.2Netprofitfromterminatingoperation(netlossislistedwith"-") | |||
| 5.2Classificationbyownership | |||
| 5.2.1Netprofitattributabletoowneroftheparentcompany | 307,035,572 | 603,403,789 | |
| 5.2.2Minorityinterestincome | 1,566,868 | -1,225,474 | |
| 6.Netafter-taxamountofothercomprehensiveincome | 7.48 | -5,765,822 | -4,657,291 |
| Netafter-taxamountofothercomprehensiveincomeattributabletoowneroftheparentcompany | -5,006,653 | -3,060,721 | |
| 6.1Othercomprehensiveincomenottobereclassifiedintoprofitandlosslater | |||
| 6.1.1Changesafterremeasuringandresettingthebenefitplans | |||
| 6.1.2Othercomprehensiveincomenottobereclassifiedintoprofitandlossunderequitylaw |
6.1.3Changesinthefairvalueofotherinvestmentsinequityinstruments
| 6.1.3Changesinthefairvalueofotherinvestmentsinequityinstruments | |||
| 6.1.4Changesinthefairvalueoftheenterprise'sowncreditrisk | |||
| 6.1.5Other | |||
| 6.2Othercomprehensiveincometobereclassifiedintoprofitandlosslater | -5,006,653 | -3,060,721 | |
| 6.2.1Othercomprehensiveincometobereclassifiedintoprofitandlossunderequitylaw | |||
| 6.2.2Changesinthefairvalueofotherdebtinvestments | |||
| 6.2.3Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | |||
| 6.2.4Provisionforcreditimpairmentofothercreditinvestments | |||
| 6.2.5Provisionforcash-flowhedge | |||
| 6.2.6DifferenceintranslationofForeignCurrencyFinancialStatement | -5,006,653 | -3,060,721 | |
| 6.2.7Other | |||
| Netafter-taxamountofothercomprehensiveincomeattributabletominorityshareholders | -759,169 | -1,596,570 | |
| 7.Totalcomprehensiveincome | 302,836,618 | 597,521,024 | |
| Attributabletoowneroftheparentcompany | 302,028,919 | 600,343,068 | |
| Attributabletominorityshareholders | 807,699 | -2,822,044 | |
| 8.Earningspershare: | |||
| 8.1Basicearningspershare | 0.45 | 0.88 | |
| 8.2Dilutedearningspershare | 0.45 | 0.88 |
LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:GuoCuimei
2.4ProfitstatementoftheparentcompanyCompilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan
| Item | Note | Sumofcurrentperiod | Sumofpriorperiod |
| 1.Operatingincome | 17.4 | 152,950,515 | 352,351,002 |
| Minus:Operatingcosts | 17.4 | 143,241,194 | 309,570,580 |
| Taxesandsurcharges | 4,379,365 | 13,140,156 | |
| Sellingexpenses | |||
| Administrativeexpenses | 30,150,311 | 39,434,246 | |
| Researchanddevelopmentexpenses | 318,917 | 405,061 | |
| Financialexpenses | 934,777 | -3,657,370 | |
| Including:Interestexpenses | 2,807,750 | -2,705,073 | |
| Interestincome | 2,251,235 | 1,470,667 | |
| Plus:Otherprofit | 1,819,890 | 1,716,527 | |
| Investmentprofit(lossislistedwith"-") | 17.5 | 87,474,604 | 264,221,755 |
| Including:Investmentprofitforjoint-runbusinessandjointventure | |||
| Financialassetsmeasuredatamortizedcostceasetoberecognizedasincome(lossislistedwith"-") | |||
| Netexposurehedgeincome(lossislistedwith"-") | |||
| Incomefromfairvaluechanges(lossislistedwith"-") | |||
| Creditimpairmentloss(lossislistedwith"-") | 599,632 |
Assetimpairmentloss(lossislistedwith"-")
| Assetimpairmentloss(lossislistedwith"-") | |||
| Incomefromassetdisposal(lossislistedwith"-") | |||
| 2.Operatingprofit(lossislistedwith"-") | 63,820,077 | 259,396,611 | |
| Plus:Non-operatingincome | 2,007,235 | 703,559 | |
| Minus:Non-operatingexpenses | 525,000 | 97,638 | |
| 3.Totalprofits(totallossislistedwith"-") | 65,302,312 | 260,002,532 | |
| Item | Note | Sumofcurrentperiod | Sumofpriorperiod |
| Minus:Incometaxexpenses | -5,644,794 | -726,946 | |
| 4.Netprofit(netlossislistedwith"-") | 70,947,106 | 260,729,478 | |
| 4.1Netprofitfromcontinuingoperation(netlossislistedwith"-") | 70,947,106 | 260,729,478 | |
| 4.2Netprofitfromterminatingoperation(netlossislistedwith"-") | |||
| 5.Netafter-taxamountofothercomprehensiveincome | |||
| 5.1Othercomprehensiveincomenottobereclassifiedintoprofitandlosslater | |||
| 5.1.1Changesafterremeasuringandresettingthebenefitplans | |||
| 5.1.2Othercomprehensiveincomenottobereclassifiedintoprofitandlossunderequitylaw | |||
| 5.1.3Changesinthefairvalueofotherinvestmentsinequityinstruments | |||
| 5.1.4Changesinthefairvalueoftheenterprise'sowncreditrisk | |||
| 5.1.5Other | |||
| 5.2Othercomprehensiveincometobereclassifiedintoprofitandlosslater | |||
| 5.2.1Othercomprehensiveincometobereclassifiedintoprofitandlossunderequitylaw | |||
| 5.2.2Changesinthefairvalueofotherdebtinvestments | |||
| 5.2.3Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | |||
| 5.2.4Provisionforcreditimpairmentofothercreditinvestments | |||
| 5.2.5Provisionforcash-flowhedge | |||
| 5.2.6DifferenceintranslationofForeignCurrencyFinancialStatement | |||
| 5.2.7Other | |||
| 6.Totalcomprehensiveincome | 70,947,106 | 260,729,478 | |
| 7.Earningspershare: | |||
| 7.1Basicearningspershare | 0.10 | 0.38 | |
| 7.2Dilutedearningspershare | 0.10 | 0.38 |
LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:GuoCuimei
2.5ConsolidatedcashflowstatementCompilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan
| Item | Note | Sumofcurrentperiod | Sumofpriorperiod |
| 1.Cashflowsfromoperatingactivities: | |||
| Cashreceivedfromsalesofgoodsandrendingofservices | 1,488,831,127 | 2,399,548,448 | |
| Netincreaseincustomerandinterbankdeposits | |||
| Netincreaseinborrowingsfromcentralbank |
Item
| Item | Note | Sumofcurrentperiod | Sumofpriorperiod |
| Netincreaseinborrowingsfromotherfinancialinstitutions | |||
| Cashreceivedfromreceivinginsurancepremiumoforiginalinsurancecontract | |||
| Netcashreceivedfromreinsurancebusiness | |||
| Netincreaseinpolicyholderdepositsandinvestmentfunds | |||
| Cashreceivedfromcollectinginterest,handlingfeesandcommissions | |||
| Netincreaseinborrowingfunds | |||
| Netincreaseinrepurchasementbusinessfunds | |||
| Netcashreceivedforbuyingandsellingsecurities | |||
| Taxrefundreceived | 23,217,782 | 20,038,271 | |
| Othercashreceivedrelatedtooperatingactivities | 7.49 | 48,173,534 | 67,785,620 |
| Subtotalofcashflowsofoperatingactivities | 1,560,222,443 | 2,487,372,339 | |
| Cashpaidforgoodsandservices | 630,954,042 | 718,093,432 | |
| Netincreaseincustomerloansandadvances | |||
| Netincreaseindepositsincentralbankandinterbankdeposits | |||
| Cashpaidtooriginalinsurancecontractpayments | |||
| Netincreaseinlendingfunds | |||
| Cashpaidtointerest,handlingfeesandcommissions | |||
| Cashpaidtopolicybonus | |||
| Cashpaidtoandonbehalfofemployees | 231,967,796 | 278,638,333 | |
| Cashpaidfortaxesandexpenses | 467,810,691 | 598,384,101 | |
| Othercashpaidrelatedtooperatingactivities | 7.49 | 259,142,735 | 392,780,467 |
| Sub-totalofcashoutflowsofoperatingactivities | 1,589,875,264 | 1,987,896,333 | |
| Netcashflowfromoperatingactivities | -29,652,821 | 499,476,006 | |
| 2.Cashflowfrominvestingactivities: | |||
| Cashreceivedfromdisinvestment | |||
| Cashreceivedfromwithdrawaloffixeddeposits | 60,128,600 | 104,597,650 | |
| Cashreceivedfromobtaininginvestmentincome | |||
| Cashreceivedfromobtaininginterestincome | 1,160,244 | 1,004,552 | |
| Cashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 131,978 | 175,837 | |
| Netcashreceivedfromdisposalofbranchandotherbusinessunit | |||
| Othercashreceivedrelatedtoinvestingactivities | |||
| Subtotalofcashflowsofinvestmentactivities | 61,420,822 | 105,778,039 | |
| Cashpaidtoacquirefixedassets,intangibleassetsandotherlong-termassets | 65,946,953 | 135,073,897 | |
| Cashforinvestment | |||
| Cashpaidforpurchasingfixeddeposits | 35,200,000 | 85,238,750 | |
| Netincreaseinhypothecatedloan | |||
| Netcashpaidforacquiringbranchandotherbusinessunit | |||
| Othercashpaidrelatedtoinvestmentactivities | |||
| Subtotalofcashoutflowsofinvestmentactivities | 101,146,953 | 220,312,647 | |
| Netcashflowfrominvestingactivities | -39,726,131 | -114,534,608 | |
| 3.Cashflowfromfinancingactivities | |||
| Cashreceivedfromacquiringinvestment | |||
| Including:cashreceivedfromacquiringminorityshareholders |
Item
| Item | Note | Sumofcurrentperiod | Sumofpriorperiod |
| investmentbybranch | |||
| Cashreceivedfromacquiringloans | 778,228,305 | 656,495,139 | |
| Othercashreceivedrelatedtofinancingactivities | |||
| Subtotalcashflowsoffinancingactivities | 778,228,305 | 656,495,139 | |
| Cashpaidforpayingdebts | 758,287,985 | 658,033,492 | |
| Cashpaidfordistributingdividendandprofitorpayinginterest | 15,235,695 | 16,590,004 | |
| Including:dividendandprofitpaidtominorityshareholdersbybranch | 1,551,687 | ||
| Othercashpaidrelatedtofinancingactivities | |||
| Subtotalofcashoutflowsoffinancingactivities | 773,523,680 | 674,623,496 | |
| Netcashflowfromfinancingactivities | 4,704,625 | -18,128,357 | |
| 4.Influencesofexchangeratefluctuationoncashandcashequivalents | -307,959 | 53,702 | |
| 5.NetIncreaseincashandcashequivalents | -64,982,286 | 366,866,743 | |
| Plus:balanceatthebeginningoftheperiodofcashandcashequivalents | 1,365,772,675 | 1,206,860,334 | |
| 6.Balanceattheendoftheperiodofcashandcashequivalents | 1,300,790,389 | 1,573,727,077 |
LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:GuoCuimei
2.6Cashflowstatementoftheparentcompany
Compilingunit:YantaiChangyuPioneerWineCo.,Ltd.Unit:Yuan
| Item | Sumofcurrentperiod | Sumofpriorperiod |
| 1.Cashflowsfromoperatingactivities: | ||
| Cashreceivedfromsalesofgoodsandrendingofservices | 176,514,170 | 219,405,421 |
| Taxrefundreceived | ||
| Othercashreceivedrelatedtooperatingactivities | 14,486,373 | 57,674,830 |
| Subtotalofcashflowsofoperatingactivities | 191,000,543 | 277,080,251 |
| Cashpaidforgoodsandservices | 149,176,637 | 163,184,301 |
| Cashpaidtoandonbehalfofemployees | 25,497,870 | 45,116,586 |
| Cashpaidfortaxesandexpenses | 2,648,464 | 22,530,113 |
| Othercashpaidrelatedtooperatingactivities | 107,931,895 | 321,847,893 |
| Sub-totalofcashoutflowsofoperatingactivities | 285,254,866 | 552,678,893 |
| Netcashflowfromoperatingactivities | -94,254,323 | -275,598,642 |
| 2.Cashflowfrominvestingactivities: | ||
| Cashreceivedfromdisinvestment | ||
| Cashreceivedfromwithdrawaloffixeddeposits | 15,200,000 | 40,000,000 |
| Cashreceivedfromobtaininginvestmentincome | 287,246,945 | 760,152,668 |
| Cashreceivedfromobtaininginterestincome | 142,759 | 484,857 |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 7,519 | |
| Netcashreceivedfromdisposalofbranchandotherbusinessunit | ||
| Othercashreceivedrelatedtoinvestingactivities | ||
| Subtotalofcashflowsofinvestmentactivities | 302,589,704 | 800,645,044 |
| Cashpaidtoacquiringfixedassets,intangibleassetsandotherlong-termassets | 1,040,048 | 10,164,233 |
| Cashforinvestment | 5,000,000 | 13,000,000 |
Item
| Item | Sumofcurrentperiod | Sumofpriorperiod |
| Cashpaidforpurchasingfixeddeposits | 15,200,000 | 85,238,750 |
| Netcashpaidforacquiringbranchandotherbusinessunit | ||
| Othercashpaidrelatedtoinvestmentactivities | 97,000,000 | |
| Subtotalofcashoutflowsofinvestmentactivities | 118,240,048 | 108,402,983 |
| Netcashflowfrominvestingactivities | 184,349,656 | 692,242,061 |
| 3.Cashflowfromfinancingactivities | ||
| Cashreceivedfromacquiringinvestment | ||
| Cashreceivedfromacquiringloans | 150,000,000 | |
| Othercashreceivedrelatedtofinancingactivities | ||
| Subtotalcashflowsoffinancingactivities | 150,000,000 | |
| Cashpaidfordebts | 150,000,000 | |
| Cashpaidtodistributedividend,profitorpayinterest | 2,748,375 | 3,248,000 |
| Othercashpaidrelatedtofinancingactivities | ||
| Subtotalofcashoutflowsoffinancingactivities | 152,748,375 | 3,248,000 |
| Netcashflowfromfinancingactivities | -2,748,375 | -3,248,000 |
| 4.Influencesofexchangeratefluctuationoncashandcashequivalents | ||
| 5.NetIncreaseincashandcashequivalents | 87,346,958 | 413,395,419 |
| Plus:balanceatthebeginningoftheperiodofcashandcashequivalents | 623,116,542 | 532,384,882 |
| 6.Balanceattheendoftheperiodofcashandcashequivalents | 710,463,500 | 945,780,301 |
LegalRepresentative:ZhouHongjiangAccountingSupervisor:JiangJianxunAccountingDepartmentManager:GuoCuimei
2.7Consolidatedowner’sequitychanginglist
Unit:Yuan
Item
| Item | Thisperiod | ||||||||||||||
| Owners’equityoftheparentcompany | Minorityshareholders’equity | Totalowners’equity | |||||||||||||
| Capitalstock | Otherequityinstruments | Capitalreserves | Minus:Treasurystock | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskpreparation | Undistributedprofits | Other | Subtotal | |||||
| Preferredstock | Perpetualbonds | Other | |||||||||||||
| 1.Balanceattheendoflastyear | 685,464,000 | 565,050,422 | -4,235,583 | 342,732,000 | 8,719,899,359 | 10,308,910,198 | 269,927,732 | 10,578,837,930 | |||||||
| Plus:Accountingpolicieschanging | |||||||||||||||
| Previouserrorcorrection | |||||||||||||||
| Businesscombinationundercommoncontrol | |||||||||||||||
| Other | |||||||||||||||
| 2.Balanceatthebeginningofthisyear | 685,464,000 | 565,050,422 | -4,235,583 | 342,732,000 | 8,719,899,359 | 10,308,910,198 | 269,927,732 | 10,578,837,930 | |||||||
| 3.Increasedordecreasedamountinthisperiod(reducingamountislistedwith"-") | -5,006,653 | -172,789,228 | -177,795,881 | -372,554 | -178,168,435 | ||||||||||
| 3.1Totalcomprehensiveincome | -5,006,653 | 307,035,572 | 302,028,919 | 807,699 | 302,836,618 | ||||||||||
| 3.2Owners'investedandreducedcapital | |||||||||||||||
| 3.2.1Owner’investedcommonstock | |||||||||||||||
| 3.2.2Otherequityinstrumentholders’investedcapital | |||||||||||||||
| 3.2.3Amountofsharespaidandreckonedin | |||||||||||||||
owners'equity
| owners'equity | |||||||||||||
| 3.2.4Other | |||||||||||||
| 3.3Profitdistribution | -479,824,800 | -479,824,800 | -1,180,253 | -481,005,053 | |||||||||
| 3.3.1Accruedsurplusreserves | |||||||||||||
| 3.3.2Accruedgeneralriskpreparation | |||||||||||||
| 3.3.3Distributiontoowners(orshareholders) | -479,824,800 | -479,824,800 | -1,180,253 | -481,005,053 | |||||||||
| 3.3.4Other | |||||||||||||
| 3.4Internaltransferofowners'equity | |||||||||||||
| 3.4.1Capitalreservestransferredandincreasedcapital(orcapitalstock) | |||||||||||||
| 3.4.2Surplusreservestransferredandincreasedcapital(orcapitalstock) | |||||||||||||
| 3.4.3Surplusreservescoveringdeficit | |||||||||||||
| 3.4.4Retainedearningscarriedoverfromthebenefitplanvariation | |||||||||||||
| 3.4.5Retainedearningscarriedoverfromothercomprehensiveincome | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specialreserves | |||||||||||||
| 3.5.1Withdrawalinthisperiod | |||||||||||||
| 3.5.2Usageinthisperiod | |||||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceattheendofthisperiod | 685,464,000 | 565,050,422 | -9,242,236 | 342,732,000 | 8,547,110,131 | 10,131,114,317 | 269,555,178 | 10,400,669,495 |
Item
| Item | Lastperiod | ||||||||||||||
| Owners’equityoftheparentcompany | Minorityshareholders’equity | Totalowners’equity | |||||||||||||
| Capitalstock | Otherequityinstruments | Capitalreserves | Minus:Treasurystock | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskpreparation | Undistributedprofits | Other | Subtotal | |||||
| Preferredstock | Perpetualbonds | Other | |||||||||||||
| 1.Balanceattheendoflastyear | 685,464,000 | 565,955,441 | 2,965,377 | 342,732,000 | 8,008,982,547 | 9,606,099,365 | 284,388,012 | 9,890,487,377 | |||||||
| Plus:Accountingpolicieschanging | -7,540,537 | -7,540,537 | -7,540,537 | ||||||||||||
| Previouserrorcorrection | |||||||||||||||
| Businesscombinationundercommoncontrol | |||||||||||||||
| Other | |||||||||||||||
| 2.Balanceatthebeginningofthisyear | 685,464,000 | 565,955,441 | 2,965,377 | 342,732,000 | 8,001,442,010 | 9,598,558,828 | 284,388,012 | 9,882,946,840 | |||||||
| 3.Increasedordecreasedamountinthisperiod(reducingamountislistedwith"-") | -905,019 | -7,200,960 | 718,457,349 | 710,351,370 | -14,460,280 | 695,891,090 | |||||||||
| 3.1Totalcomprehensiveincome | -7,200,960 | 1,129,735,749 | 1,122,534,789 | -1,368,953 | 1,121,165,836 | ||||||||||
| 3.2Owners'investedandreducedcapital | -905,019 | -905,019 | -10,714,533 | -11,619,552 | |||||||||||
| 3.2.1Owner’investedcommonstock | -905,019 | -905,019 | -10,714,533 | -11,619,552 | |||||||||||
| 3.2.2Otherequityinstrumentholders’investedcapital | |||||||||||||||
| 3.2.3Amountofsharespaidandreckonedinowners'equity | |||||||||||||||
| 3.2.4Other | |||||||||||||||
3.3Profitdistribution
| 3.3Profitdistribution | -411,278,400 | -411,278,400 | -2,376,794 | -413,655,194 | |||||||||
| 3.3.1Accruedsurplusreserves | |||||||||||||
| 3.3.2Accruedgeneralriskpreparation | |||||||||||||
| 3.3.3Distributiontoowners(orshareholders) | -411,278,400 | -411,278,400 | -2,376,794 | -413,655,194 | |||||||||
| 3.3.4Other | |||||||||||||
| 3.4Internaltransferofowners'equity | |||||||||||||
| 3.4.1Capitalreservestransferredandincreasedcapital(orcapitalstock) | |||||||||||||
| 3.4.2Surplusreservestransferredandincreasedcapital(orcapitalstock) | |||||||||||||
| 3.4.3Surplusreservescoveringdeficit | |||||||||||||
| 3.4.4Retainedearningscarriedoverfromthebenefitplanamount | |||||||||||||
| 3.4.5Retainedearningscarriedoverfromothercomprehensiveincome | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specialreserves | |||||||||||||
| 3.5.1Withdrawalinthisperiod | |||||||||||||
| 3.5.2Usageinthisperiod | |||||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceattheendofthisperiod | 685,464,000 | 565,050,422 | -4,235,583 | 342,732,000 | 8,719,899,359 | 10,308,910,198 | 269,927,732 | 10,578,837,930 |
2.8Owner’sequitychanginglistoftheparentcompany
Unit:Yuan
Item
| Item | Thisperiod | |||||||||||
| Capitalstock | Otherequityinstruments | Capitalreserves | Minus:Treasurystock | Othercomprehensiveincome | Specialreserves | Surplusreserves | Undistributedprofits | Other | Totalowners’equity | |||
| Preferredstock | Perpetualbonds | Other | ||||||||||
| 1.Balanceattheendoflastyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 | |||||||
| Plus:Accountingpolicieschanging | ||||||||||||
| Previouserrorcorrection | ||||||||||||
| Other | ||||||||||||
| 2.Balanceatthebeginningofthisyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 | |||||||
| 3.Increasedordecreasedamountinthisperiod(reducingamountislistedwith"-") | -408,877,694 | -408,877,694 | ||||||||||
| 3.1Totalcomprehensiveincome | 70,947,106 | 70,947,106 | ||||||||||
| 3.2Owners'investedandreducedcapital | ||||||||||||
| 3.2.1Owners’investedcommonstock | ||||||||||||
| 3.2.2Otherequityinstrumentholder’investedcapital | ||||||||||||
| 3.2.3Amountofsharespaidandreckonedinowners'equity | ||||||||||||
| 3.2.4Other | ||||||||||||
| 3.3Profitdistribution | -479,824,800 | -479,824,800 | ||||||||||
| 3.3.1Drewsurplusreserves | ||||||||||||
| 3.3.2Distributiontoowners(orshareholders) | -479,824,800 | -479,824,800 | ||||||||||
| 3.3.3Other | ||||||||||||
| 3.4Internaltransferofowners'equity | ||||||||||||
| 3.4.1Capitalreservestransferredandincreasedcapital(orcapitalstock) | ||||||||||||
| 3.4.2Surplusreservestransferredandincreasedcapital(orcapitalstock) | ||||||||||||
3.4.3Surplusreservescoveringdeficit
| 3.4.3Surplusreservescoveringdeficit | ||||||||
| 3.4.4Retainedearningscarriedoverfromthebenefitplanamount | ||||||||
| 3.4.5Retainedearningscarriedoverfromothercomprehensiveincome | ||||||||
| 3.4.6Other | ||||||||
| 3.5Specialreserves | ||||||||
| 3.5.1Accrualinthisperiod | ||||||||
| 3.5.2Usageinthisperiod | ||||||||
| 3.6Other | ||||||||
| 4.Balanceattheendofthisperiod | 685,464,000 | 557,222,454 | 342,732,000 | 8,211,099,883 | 9,796,518,337 |
Unit:Yuan
| Item | Lastperiod | |||||||||||
| Capitalstock | Otherequityinstruments | Capitalreserves | Minus:Treasurystock | Othercomprehensiveincome | Specialreserves | Surplusreserves | Undistributedprofits | Other | Totalowners’equity | |||
| Preferredstock | Perpetualbonds | Other | ||||||||||
| 1.Balanceattheendoflastyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 | |||||||
| Plus:Accountingpolicieschanging | ||||||||||||
| Previouserrorcorrection | ||||||||||||
| Other | ||||||||||||
| 2.Balanceatthebeginningofthisyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 | |||||||
| 3.Increasedordecreasedamountinthisperiod(reducingamountislistedwith"-") | 182,020,449 | 182,020,449 | ||||||||||
| 3.1Totalcomprehensiveincome | 593,298,849 | 593,298,849 | ||||||||||
| 3.2Owners'investedandreducedcapital | ||||||||||||
| 3.2.1Owners’investedcommonstock | ||||||||||||
| 3.2.2Otherequityinstrumentholder’investedcapital | ||||||||||||
| 3.2.3Amountofsharespaidandreckonedinowners'equity | ||||||||||||
3.2.4Other
| 3.2.4Other | ||||||||
| 3.3Profitdistribution | -411,278,400 | -411,278,400 | ||||||
| 3.3.1Drewsurplusreserves | ||||||||
| 3.3.2Distributiontoowners(orshareholders) | -411,278,400 | -411,278,400 | ||||||
| 3.3.3Other | ||||||||
| 3.4Internaltransferofowners'equity | ||||||||
| 3.4.1Capitalreservestransferredandincreasedcapital(orcapitalstock) | ||||||||
| 3.4.2Surplusreservestransferredandincreasedcapital(orcapitalstock) | ||||||||
| 3.4.3Surplusreservescoveringdeficit | ||||||||
| 3.4.4Retainedearningscarriedoverfromthebenefitplanamount | ||||||||
| 3.4.5Retainedearningscarriedoverfromothercomprehensiveincome | ||||||||
| 3.4.6Other | ||||||||
| 3.5Specialreserves | ||||||||
| 3.5.1Accrualinthisperiod | ||||||||
| 3.5.2Usageinthisperiod | ||||||||
| 3.6Other | ||||||||
| 4.Balanceattheendofthisperiod | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 |
3.Companyprofile
YantaiChangyuPioneerWineCo.,Ltd.(the“Company”orthe“Joint-stockCompany”)wasincorporatedasajoint-stocklimitedcompanyinaccordancewiththeCompanyLawofthePeople’sRepublicofChina(the“PRC”)inthemergerandreorganizationcarriedoutbyYantaiChangyuGroupCo.,Ltd.(“ChangyuGroupCompany”)withitsassetsandliabilitiesinrelationtowinebusiness.TheCompanyanditssubsidiarycompanies(hereinaftercollectivelyreferredtoasthe“Group”)areengagedintheproductionandsaleofwine,brandyandchampagne,plantingandpurchaseofgrapes,developmentoftourismresources,etc.TheregisteredaddressoftheCompanyisYantaiCity,ShandongProvince,andtheofficeaddressoftheheadquartersis56DamaRoad,ZhifuDistrict,YantaiCity,ShandongProvince.AsatJune30,2020,theCompanyissued685,464,000sharesaccumulatively.RefertoNote7.29fordetails.TheparentcompanyoftheGroupisChangyuGroupCompanyincorporatedinChina,whichwasultimatelyandactuallycontrolledbyfourparties,includingYantaiGuofengInvestmentHoldingCo.,Ltd.,ILLVASaronnoHoldingSpa,InternationalFinanceCorporationandYantaiYuhuaInvestment&DevelopmentCo.,Ltd.ThefinancialstatementandtheconsolidatedfinancialstatementoftheCompanywereapprovedbytheBoardofDirectorsonAugust26,2020.ThedetailsofscopeoftheconsolidatedfinancialstatementinthisperiodcanbeseeninNote9“Equityinotherentities”.ThedetailsofscopechangesoftheconsolidatedfinancialstatementinthisperiodcanbeseeninNote8“Changesoftheconsolidatedscope”.
4.Preparationbasisoffinancialstatement
4.1Preparationbasis
TheGroupimplementstheAccountingStandardsforBusinessEnterprises(includingthenewandrevisededitionspublishedin2014)(“ASBE”)publishedbytheMinistryofFinanceandrelevant
regulationsthereof.
4.2Continuousoperation
TheGrouphasappraisedtheabilityofcontinuousoperationfor12monthsfromJune30,2020,andnoissuesorsituationscausingmajordoubtstothisabilityarefound.Therefore,thisfinancialstatementispreparedonthebasisofthecontinuousoperationassumption.
5.Mainaccountingpoliciesandaccountingestimates
5.1StatementoncompliancewithASBE
ThisfinancialstatementfulfillstherequirementofASBEissuedbytheMinistryofFinanceandgivesatrueandintegratedviewoftheconsolidatedfinancialstatusandthefinancialstatusasatJune30,2020,aswellastheconsolidatedoperatingresult,theoperatingresult,theconsolidatedcashflowandthecashflowoftheCompanyfromJanuarytoJune2020.Inaddition,thefinancialstatementoftheCompanyalsocomplieswiththerelateddisclosurerequirementsforstatementanditsnotesstipulatedbyPreparationRulesforInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15–GeneralProvisionsonFinancialReports(2014Revision)bytheChinaSecuritiesRegulatoryCommission(hereinafterreferredtoasthe“CSRC”).
5.2Accountingperiod
TheaccountingyearisfromJanuary1toDecember31inGregoriancalendar.
5.3OperatingcycleTheoperatingcyclereferstotheperiodfromtheenterprisepurchasestheassetsusedforprocessingtothecashorcashequivalentisrealized.TheoperatingcycleoftheCompanyis12months.
5.4Recordingcurrency
SinceRenminbi(RMB)isthecurrencyofthemaineconomicenvironmentinwhichtheCompanyandthedomesticsubsidiarycompaniesthereofaresituated,theCompanyandthesubsidiarycompaniesthereofadoptRMBastherecordingcurrency.TheoverseassubsidiarycompaniesthereofdetermineEUR,CLPandAUDastherecordingcurrencyaccordingtothemaineconomicenvironmentinwhichtheyaresituated.ThecurrencyinthisfinancialstatementpreparedbytheGroupisRMB.
5.5Accountingtreatmentmethodforbusinesscombinationundercommoncontrolandnon-commoncontrol
5.5.1BusinesscombinationandgoodwillundercommoncontrolAbusinesscombinationundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorsamemultiplepartiesbeforeandafterthecombination,andthatcontrolisnottransitory.Theassetsandliabilitiesobtainedbythecombiningpartyinthebusinesscombinationshallbemeasuredonthebasisofthecarryingamountintheultimatecontrollingparty'sconsolidatedfinancialstatementasatthecombinationdate.Wherethereisadifferencebetweenthecarryingamountofthenetassetsacquiredandthecarryingamountofthecombinationconsiderationpaid(orthetotalparvalueofthesharesissued),thestockpremiumincapitalsurplusshallbeadjusted.Ifthestockpremiumincapitalsurplusisnotsufficienttooffset,theretainedearningsshallbeadjusted.Thedirectrelatedexpensesincurredforthebusinesscombinationshallbeincludedinthecurrentprofitandlosswhenincurred.Thecombinationdateisthedateonwhichthecombiningpartyactuallyobtainscontrolofthecombinedparty.
5.5.2Businesscombinationundernon-commoncontrol
Abusinesscombinationundernon-commoncontrolisabusinesscombinationinwhichallofthecombiningpartiesarenotultimatelycontrolledbythesamepartyorsamemultiplepartiesbeforeandafterthecombination.ThesumoffairvaluesoftheassetspaidbytheGroup,astheacquirer,(includingtheacquiree’sequitytheGroupheldbeforetheacquisitiondate),liabilitiesincurredorassumed,andtheequitysecuritiesissuedontheacquisitiondateinexchangeforthecontrolovertheacquiree,deductsthefairvalueoftheacquiree’sidentifiablenetassetsacquiredinthecombinationontheacquisitiondate.Ifthedifferenceispositive,itshallberecognizedasgoodwill;andifitisnegative,itshallbeincludedinthecurrentprofitandloss.Alltheidentifiableassets,liabilitiesandcontingentliabilitieswhichareobtainedfromtheacquireeandmeettherecognitionconditionsshallbeconfirmedbytheGroupontheacquisitiondateaccordingtothefairvaluethereof.Theacquisitiondateisthe
dateonwhichtheacquireractuallyobtainscontroloftheacquiree.Forabusinesscombinationinvolvingentitiesnotundercommoncontrolandachievedinstages,theGroupremeasuresitspreviously-heldequityinterestintheacquireetoitsacquisition-datefairvalueandrecognisesanyresultingdifferencebetweenthefairvalueandthecarryingamountasinvestmentincomeorothercomprehensiveincomeforthecurrentperiod.Inaddition,anyamountrecognisedinothercomprehensiveincomethatmaybereclassifiedtoprofitorloss,inpriorreportingperiodsrelatingtothepreviously-heldequityinterest,andanyotherchangesintheowners’equityunderequityaccounting,aretransferredtoinvestmentincomeintheperiodinwhichtheacquisitionoccurs.Ifequityinterestsoftheacquireeheldbeforeacquisition-datewereequityinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,othercomprehensiveincomerecognisedshallbemovedtoretainedearningsonacquisition-date.
5.6Compilingmethodsofconsolidatedfinancialstatement
5.6.1Generalprinciples
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.
5.6.2Subsidiariesacquiredthroughabusinesscombination
Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesundercommoncontrol,thefinancialstatementsofthesubsidiaryareincludedintheconsolidatedfinancialstatementsbasedonthecarryingamountsoftheassetsandliabilitiesofthesubsidiaryinthefinancialstatementsoftheultimatecontrollingpartyasifthecombinationhadoccurredatthedatethattheultimatecontrollingpartyfirstobtainedcontrol.Theopeningbalancesandthecomparativefiguresoftheconsolidatedfinancialstatementsarealsorestated.Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesnotundercommoncontrol,theidentifiableassetsandliabilitiesoftheacquiredsubsidiariesareincludedinthescopeofconsolidationfromthedatethatcontrolcommences,basedonthefairvalueofthoseidentifiableassetsandliabilitiesattheacquisitiondate.
5.6.3Disposalofsubsidiaries
WhentheGrouplosescontroloverasubsidiary,anyresultingdisposalgainsorlossesarerecognisedasinvestmentincomeforthecurrentperiod.Theremainingequityinvestmentisre-measuredatitsfairvalueatthedatewhencontrolislost,anyresultinggainsorlossesarealsorecognisedasinvestmentincomeforthecurrentperiod.WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,thefollowingareconsideredtodeterminewhethertheGroupshouldaccountforthemultipletransactionsasabundledtransaction:
-arrangementsareenteredintoatthesametimeorincontemplationofeachother;
-arrangementsworktogethertoachieveanoverallcommercialeffect;-theoccurrenceofonearrangementisdependentontheoccurrenceofatleastoneotherarrangement;-onearrangementconsideredonitsownisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithotherarrangements.Ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposalofequityinvestmentinsubsidiarieswherecontrolisretained.Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognisedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.
5.6.4Changesinnon-controllinginterests
WheretheCompanyacquiresanon-controllinginterestfromasubsidiary’snon-controllingshareholdersordisposesofaportionofaninterestinasubsidiarywithoutachangeincontrol,thedifferencebetweentheproportioninterestsofthesubsidiary’snetassetsbeingacquiredordisposedandtheamountoftheconsiderationpaidorreceivedisadjustedtothecapitalreserve(sharepremium)intheconsolidatedbalancesheet,withanyexcessadjustedtoretainedearnings.
5.7Determinationstandardofcashandcashequivalents
Cashandcashequivalentscomprisecashonhand,demanddeposit,andshort-termhighlyliquidinvestmentswhicharereadilyconvertibleintoknownamountofcashwithaninsignificantriskofchangesinvalue.
5.8Foreigncurrencytransactionandforeigncurrencystatementtranslation
WhentheGroupreceivescapitalinforeigncurrenciesfrominvestors,thecapitalistranslatedto
Renminbiatthespotexchangerateatthedateofthereceipt.Otherforeigncurrencytransactionsare,oninitialrecognition,translatedtoRenminbiatthespotexchangerates.MonetaryitemsdenominatedinforeigncurrenciesaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Theresultingexchangedifferencesaregenerallyrecognisedinprofitorloss,unlesstheyarisefromthere-translationoftheprincipalandinterestofspecificborrowingsfortheacquisitionandconstructionofqualifyingassets.Non-monetaryitemsthataremeasuredathistoricalcostinforeigncurrenciesaretranslatedtoRenminbiusingtheexchangerateatthetransactiondate.Intranslatingthefinancialstatementsofaforeignoperation,assetsandliabilitiesofforeignoperationaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Equityitems,excludingretainedearningsandthetranslationdifferencesinothercomprehensiveincome,aretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.IncomeandexpensesintheincomestatementaretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.Theresultingtranslationdifferencesarerecognisedinothercomprehensiveincome.Thetranslationdifferencesaccumulatedinothercomprehensiveincomewithrespecttoaforeignoperationaretransferredtoprofitorlossintheperiodwhentheforeignoperationisdisposed.
5.9Financialinstruments
Financialinstrumentsincludecashatbankandonhand,investmentsindebtandequitysecuritiesotherthanthoseclassifiedaslong-termequityinvestments,receivables,payables,loansandborrowingsandsharecapital.
5.9.1RecognitionandinitialmeasurementoffinancialassetsandfinancialliabilitiesAfinancialassetandfinancialliabilityisrecognisedinthebalancesheetwhentheGroupbecomesapartytothecontractualprovisionsofafinancialinstrument.Afinancialassets(unlessitisatradereceivablewithoutasignificantfinancingcomponent)andfinancialliabilitiesismeasuredinitiallyatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,anyrelateddirectlyattributabletransactioncostsarechargedtoprofitorloss;forothercategoriesoffinancialassetsandfinancialliabilities,anyrelateddirectlyattributabletransactioncostsareincludedintheirinitialcosts.Accountsreceivablecontainingnosignificantfinancingcomponentaremeasuredinitiallyattransactionpricesdeterminedbytheaccountingpolicies
setoutinNote5.22.
5.9.2Classificationandsubsequentmeasurementoffinancialassets
(a)ClassificationoffinancialassetsTheclassificationoffinancialassetsisgenerallybasedonthebusinessmodelinwhichafinancialassetismanagedanditscontractualcashflowcharacteristics.Oninitialrecognition,afinancialassetisclassifiedasmeasuredatamortisedcost,atfairvaluethroughothercomprehensiveincome(“FVOCI”),oratfairvaluethroughprofitorloss(“FVTPL”).FinancialassetsarenotreclassifiedsubsequenttotheirinitialrecognitionunlesstheGroupchangesitsbusinessmodelformanagingfinancialassetsinwhichcaseallaffectedfinancialassetsarereclassifiedonthefirstdayofthefirstreportingperiodfollowingthechangeinthebusinessmodel.AfinancialassetismeasuredatamortisedcostifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveistoholdassetstocollectcontractualcashflows;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.AdebtinvestmentismeasuredatFVOCIifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandsellingfinancialassets;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Oninitialrecognitionofanequityinvestmentthatisnotheldfortrading,theGroupmayirrevocablyelecttopresentsubsequentchangesintheinvestment’sfairvalueinothercomprehensiveincome.Thiselectionismadeonaninvestment-by-investmentbasis.Theinstrumentmeetsthedefinitionofequity
fromtheperspectiveoftheissuer.AllfinancialassetsnotclassifiedasmeasuredatamortisedcostorFVOCIasdescribedabovearemeasuredatFVTPL.Oninitialrecognition,theGroupmayirrevocablydesignateafinancialassetthatotherwisemeetstherequirementstobemeasuredatamortisedcostoratFVOCIasatFVTPLifdoingsoeliminatesorsignificantlyreducesanaccountingmismatchthatwouldotherwisearise.ThebusinessmodelreferstohowtheGroupmanagesitsfinancialassetsinordertogeneratecashflows.Thatis,theGroup’sbusinessmodeldetermineswhethercashflowswillresultfromcollectingcontractualcashflows,sellingfinancialassetsorboth.TheGroupdeterminesthebusinessmodelformanagingthefinancialassetsaccordingtothefactsandbasedonthespecificbusinessobjectiveformanagingthefinancialassetsdeterminedbytheGroup’skeymanagementpersonnel.Inassessingwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterest,theGroupconsidersthecontractualtermsoftheinstrument.Forthepurposesofthisassessment,‘principal’isdefinedasthefairvalueofthefinancialassetoninitialrecognition.‘Interest’isdefinedasconsiderationforthetimevalueofmoneyandforthecreditriskassociatedwiththeprincipalamountoutstandingduringaparticularperiodoftimeandforotherbasiclendingrisksandcosts,aswellasaprofitmargin.TheGroupalsoassesseswhetherthefinancialassetcontainsacontractualtermthatcouldchangethetimingoramountofcontractualcashflowssuchthatitwouldnotmeetthiscondition.(b)Subsequentmeasurementoffinancialassets-FinancialassetsatFVTPLThesefinancialassetsaresubsequentlymeasuredatfairvalue.Netgainsandlosses,includinganyinterestordividendincome,arerecognisedinprofitorlossunlessthefinancialassetsarepartofahedgingrelationship.-FinancialassetsatamortisedcostTheseassetsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Againorlossonafinancialassetthatismeasuredatamortisedcostandisnotpartofahedgingrelationshipshallberecognisedinprofitorlosswhenthefinancialassetisderecognised,throughtheamortisation
processorinordertorecogniseimpairmentgainsorlosses.-DebtinvestmentsatFVOCITheseassetsaresubsequentlymeasuredatfairvalue.Interestincomecalculatedusingtheeffectiveinterestmethod,impairmentandforeignexchangegainsandlossesarerecognisedinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoprofitorloss.-EquityinvestmentsatFVOCITheseassetsaresubsequentlymeasuredatfairvalue.Dividendsarerecognisedasincomeinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoretainedearnings.
5.9.3ClassificationandsubsequentmeasurementoffinancialliabilitiesFinancialliabilitiesareclassifiedasmeasuredatFVTPLoramortisedcostbytheGroup.-FinancialliabilitiesatFVTPLAfinancialliabilityisclassifiedasatFVTPLifitisclassifiedasheld-for-trading(includingderivativefinancialliability)oritisdesignatedassuchoninitialrecognition.FinancialliabilitiesatFVTPLaresubsequentlymeasuredatfairvalueandnetgainsandlosses,includinganyinterestexpense,arerecognisedinprofitorloss,unlessthefinancialliabilitiesarepartofahedgingrelationship.-FinancialliabilitiesatamortisedcostThesefinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
5.9.4Offsetting
Financialassetsandfinancialliabilitiesaregenerallypresentedseparatelyinthebalancesheet,andarenotoffset.However,afinancialassetandafinancialliabilityareoffsetandthenetamountispresentedinthebalancesheetwhenbothofthefollowingconditionsaresatisfied:
-TheGroupcurrentlyhasalegallyenforceablerighttosetofftherecognisedamounts；-TheGroupintendseithertosettleonanetbasis,ortorealisethefinancialassetandsettlethefinancialliabilitysimultaneously.
5.9.5DerecognitionoffinancialassetsandfinancialliabilitiesFinancialassetisderecognisedwhenoneofthefollowingconditionsismet:
-theGroup’scontractualrightstothecashflowsfromthefinancialassetexpire;-thefinancialassethasbeentransferredandtheGrouptransferssubstantiallyalloftherisksandrewardsofownershipofthefinancialasset;or；-thefinancialassethasbeentransferred,althoughtheGroupneithertransfersnorretainssubstantiallyalloftherisksandrewardsofownershipofthefinancialasset,itdoesnotretaincontroloverthetransferredasset.Whereatransferofafinancialassetinitsentiretymeetsthecriteriaforderecognition,thedifferencebetweenthetwoamountsbelowisrecognisedinprofitorloss:
-thecarryingamountofthefinancialassettransferredmeasuredatthedateofderecognition;-thesumoftheconsiderationreceivedfromthetransferand,whenthetransferredfinancialassetisadebtinvestmentatFVOCI,anycumulativegainorlossthathasbeenrecogniseddirectlyinothercomprehensiveincomeforthepartderecognised.TheGroupderecognisesafinancialliability(orpartofit)onlywhenitscontractualobligation(orpartofit)isextinguished.
5.9.6Impairment
TheGrouprecogniseslossallowancesforexpectedcreditloss(ECL)on:
-financialassetsmeasuredatamortisedcost;-financialinvestmentsatfairvaluethroughothercomprehensiveincomeFinancialassetsmeasuredatfairvalue,includingdebtinvestmentsorequitysecuritiesatFVPL,equitysecuritiesdesignatedatFVOCIandderivativefinancialassets,arenotsubjecttotheECLassessment.MeasurementofECLsECLsareaprobability-weightedestimateofcreditlosses.Creditlossesaremeasuredasthepresentvalueofallcashshortfalls(i.e.thedifferencebetweenthecashflowsduetotheentityinaccordancewiththecontractandthecashflowsthattheGroupexpectstoreceive).ThemaximumperiodconsideredwhenestimatingECLsisthemaximumcontractualperiod(includingextensionoptions)overwhichtheGroupisexposedtocreditrisk.LifetimeECLsaretheECLsthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.12-monthECLsaretheportionofECLsthatresultfromdefaulteventsthatarepossiblewithinthe12monthsafterthebalancesheetdate(orashorterperiodiftheexpectedlifeoftheinstrumentislessthan12months).Foraccountsreceivable,lossallowancealwaysmeasuredatanamountequaltolifetimeECLs.ECLsonthesefinancialassetsareestimatedusingaprovisionmatrixbasedontheGroup’shistoricalcreditlossexperience,adjustedforfactorsthatarespecifictothedebtorsandanassessmentofboththecurrentandforecastgeneraleconomicconditionsatthebalancesheetdate.Forassetsotherthanaccountsreceivablethatmeetoneofthefollowingconditions,lossallowancearemeasuredatanamountequalto12-monthECLs.Forallotherfinancialinstruments,theGrouprecognisesalossallowanceequaltolifetimeECLs:
-Ifthefinancialinstrumentisdeterminedtohavelowcreditriskatthebalancesheetdate;
-Ifthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.FinancialinstrumentsthathavelowcreditriskThecreditriskonafinancialinstrumentisconsideredlowifthefinancialinstrumenthasalowriskofdefault,theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandadversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.SignificantincreasesincreditriskInassessingwhetherthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofdefaultoccurringonthefinancialinstrumentassessedatthebalancesheetdatewiththatassessedatthedateofinitialrecognition.WhendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognitionandwhenestimatingECL,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort,includingforward-lookinginformation.Inparticular,thefollowinginformationistakenintoaccount:
-failuretomakepaymentsofprincipalorinterestontheircontractuallyduedates;-anactualorexpectedsignificantdeteriorationinafinancialinstrument’sexternalorinternalcreditrating(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,theGrouphavinggrantedtotheborroweraconcessionthatwouldnototherwiseconsider;-itisprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;or-thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancialdifficulties.PresentationofallowanceforECLECLsareremeasuredateachbalancesheetdatetoreflectchangesinthefinancialinstrument’screditrisksinceinitialrecognition.AnychangeintheECLamountisrecognisedasanimpairmentgainorlossinprofitorloss.TheGrouprecognisesanimpairmentgainorlossforallfinancialinstrumentswithacorrespondingadjustmenttotheircarryingamountthroughalossallowanceaccount,exceptfordebtinvestmentsthataremeasuredatFVOCI,forwhichthelossallowanceisrecognisedinothercomprehensiveincome.Write-offThegrosscarryingamountofafinancialassetiswrittenoff(eitherpartiallyorinfull)totheextentthatthereisnorealisticprospectofrecovery.Awrite-offconstitutesaderecognitionevent.ThisisgenerallythecasewhentheGroupdeterminesthatthedebtordoesnothaveassetsorsourcesofincomethatcouldgeneratesufficientcashflowstorepaytheamountssubjecttothewrite-off.However,financialassetsthatarewrittenoffcouldstillbesubjecttoenforcementactivitiesinordertocomplywiththeGroup’sproceduresforrecoveryofamountsdue.Subsequentrecoveriesofanassetthatwaspreviouslywrittenoffarerecognisedasareversalofimpairmentinprofitorlossintheperiodinwhichtherecoveryoccurs.
5.9.7Equityinstrument
Theconsiderationreceivedfromtheissuanceofequityinstrumentsnetoftransactioncostsisrecognisedinshareholders’equity.ConsiderationandtransactioncostspaidbytheCompanyforrepurchasingself-issuedequityinstrumentsaredeductedfromshareholders’equity.WhentheCompanyrepurchasesitsownshares,thosesharesaretreatedastreasuryshares.Allexpenditurerelatingtotherepurchaseisrecordedinthecostofthetreasuryshares,withthetransactionrecordingintheshareregister.Treasurysharesareexcludedfromprofitdistributionsandarepresentedasadeductionundershareholders’equityinthebalancesheet.
5.10Inventories
5.10.1Classificationandcost
Inventoriesincluderawmaterials,workinprogressandreusablematerials.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpenditureincurredinbringingtheinventoriestotheirpresentlocationandcondition.Inadditiontothepurchasecostofrawmaterials,workinprogressandfinishedgoodsincludedirectlabourcostsandanappropriateallocationofproductionoverheads.AgriculturalproductsharvestedarereportedinaccordancewiththeCASNo.1-Inventories.
5.10.2Measurementmethodofcostofinventories
Costofinventoriesiscalculatedusingtheweightedaveragemethod.Consumablesincludinglow-valueconsumablesandpackagingmaterialsareamortisedwhentheyareused.Theamortisationchargeisincludedinthecostoftherelatedassetsorrecognisedinprofitorlossforthecurrentperiod.
5.10.3Basisfordeterminingthenetrealisablevalueandmethodforprovisionfor
obsoleteinventoriesAtthebalancesheetdate,inventoriesarecarriedatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Thenetrealisablevalueofmaterialsheldforuseintheproductionismeasuredbasedonthenetrealisablevalueofthefinishedgoodsinwhichtheywillbeincorporated.Thenetrealisablevalueoftheinventoryheldtosatisfysalesorservicecontractsismeasuredbasedonthecontractprice,totheextentofthequantitiesspecifiedinsalescontracts,andtheexcessportionofinventoriesismeasuredbasedongeneralsellingprices.Anyexcessofthecostoverthenetrealisablevalueofeachitemofinventoriesisrecognisedasaprovisionforimpairment,andisrecognisedinprofitorloss.
5.10.4Inventorycountsystem
TheGroupmaintainsaperpetualinventorysystem.
5.11Long-termequityinvestments
5.11.1Investmentcostoflong-termequityinvestments(a)Long-termequityinvestmentsacquiredthroughabusinesscombination-Theinitialcostofalong-termequityinvestmentacquiredthroughabusinesscombinationinvolvingentitiesundercommoncontrolistheCompany’sshareofthecarryingamountofthesubsidiary’sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountoftheconsiderationgivenisadjustedtothesharepremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.Foralong-termequityinvestmentinasubsidiaryacquiredthroughabusinesscombinationachievedinstageswhichdonotformabundledtransactionandinvolvingentitiesundercommoncontrol,theCompanydeterminestheinitialcostoftheinvestmentinaccordancewiththeabovepolicies.Thedifferencebetweenthisinitialcostandthesumofthecarryingamountof
previously-heldinvestmentandtheconsiderationpaidforthesharesnewlyacquiredisadjustedtocapitalpremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.-Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinitialcostcomprisestheaggregateofthefairvalueofassetstransferred,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheCompany,inexchangeforcontroloftheacquiree.Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingentitiesundercommoncontrolandachievedthroughmultipletransactionsinstageswhichdonotformabundledtransaction,theinitialcostcomprisesthecarryingamountofthepreviously-heldequityinvestmentintheacquireeimmediatelybeforetheacquisitiondate,andtheadditionalinvestmentcostattheacquisitiondate.(b)Long-termequityinvestmentsacquiredotherthanthroughabusinesscombination-Along-termequityinvestmentacquiredotherthanthroughabusinesscombinationisinitiallyrecognisedattheamountofcashpaidiftheGroupacquirestheinvestmentbycash,oratthefairvalueoftheequitysecuritiesissuedifaninvestmentisacquiredbyissuingequitysecurities.
5.11.2Subsequentmeasurementoflong-termequityinvestment
(a)InvestmentsinsubsidiariesIntheCompany’sseparatefinancialstatements,long-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodunlesstheinvestmentisclassifiedasheldforsale.Exceptforcashdividendsorprofitdistributionsdeclaredbutnotyetdistributedthathavebeenincludedinthepriceorconsiderationpaidinobtainingtheinvestments,theCompanyrecognisesitsshareofthecashdividendsorprofitdistributionsdeclaredbytheinvesteeasinvestmentincomeforthecurrentperiod.Theinvestmentsinsubsidiariesarestatedinthebalancesheetatcostlessaccumulatedimpairmentlosses.Fortheimpairmentoftheinvestmentsinsubsidiaries,refertoNote5.20.IntheGroup’sconsolidatedfinancialstatements,subsidiariesareaccountedforinaccordancewiththepoliciesdescribedinNote5.6.
(b)InvestmentsinjointventuresAjointventureisanarrangementwherebytheGroupandotherpartieshavejointcontrolandrightstothenetassetsofthearrangement.Along-termequityinvestmentinajointventureisaccountedforusingtheequitymethodforsubsequentmeasurement,unlesstheinvestmentisclassifiedasheldforsale.TheaccountingtreatmentsundertheequitymethodadoptedbytheGroupareasfollows:
-Wheretheinitialcostofalong-termequityinvestmentexceedstheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedatcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedattheinvestor’sshareofthefairvalueoftheinvestee’sidentifiablenetassets,andthedifferenceisrecognisedinprofitorloss.-Aftertheacquisitionoftheinvestment,theGrouprecognisesitsshareoftheinvestee’sprofitorlossandothercomprehensiveincomeasinvestmentincomeorlossesandothercomprehensiveincomerespectively,andadjuststhecarryingamountoftheinvestmentaccordingly.Oncetheinvesteedeclaresanycashdividendsorprofitdistributions,thecarryingamountoftheinvestmentisreducedbytheamountattributabletotheGroup.ChangesintheGroup’sshareoftheinvestee’sowners’equity,otherthanthosearisingfromtheinvestee’snetprofitorloss,othercomprehensiveincomeorprofitdistribution(referredtoas“otherchangesinowners’equity”),isrecogniseddirectlyintheGroup’sequity,andthecarryingamountoftheinvestmentisadjustedaccordingly.-Incalculatingitsshareoftheinvestee’snetprofitsorlosses,othercomprehensiveincomeandotherchangesinowners’equity,theGrouprecognisesinvestmentincomeandothercomprehensiveincomeaftermakingappropriateadjustmentstoaligntheaccountingpoliciesoraccountingperiodswiththoseoftheGroupbasedonthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition.UnrealisedprofitsandlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedtotheextentoftheGroup’sinterestintheassociatesorjointventures.UnrealisedlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedinthesamewayasunrealisedgainsbutonlytotheextentthatthereisno
impairment.-TheGroupdiscontinuesrecognisingitsshareoffurtherlossesoftheinvesteeafterthecarryingamountofthelong-termequityinvestmentandanylong-terminterestthatinsubstanceformspartoftheGroup’snetinvestmentintheassociateisreducedtozero,excepttotheextentthattheGrouphasanobligationtoassumeadditionallosses.Ifthejointventuresubsequentlyreportsnetprofits,theGroupresumesrecognisingitsshareofthoseprofitsonlyafteritsshareoftheprofitsequalstheshareoflossesnotrecognised.Fortheimpairmentoftheinvestmentsinjointventuresandassociates,refertoNote5.20.
5.11.3CriteriafordeterminingtheexistenceofjointcontroloveraninvesteeJointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivities(activitieswithsignificantimpactonthereturnsofthearrangement)requiretheunanimousconsentofthepartiessharingcontrol.ThefollowingfactorsareusuallyconsideredwhenassessingwhethertheGroupcanexercisejointcontroloveraninvestee:
-Whethernosingleparticipantpartyisinapositiontocontroltheinvestee’srelatedactivitiesunilaterally;-Whetherstrategicdecisionsrelatingtotheinvestee’srelatedactivitiesrequiretheunanimousconsentofallparticipantpartiesthatsharingofcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofaninvesteebutdoesnothavecontrolorjointcontroloverthosepolicies.
5.12Investmentproperties
Investmentpropertiesarepropertiesheldeithertoearnrentalincomeorforcapitalappreciationorforboth.Investmentpropertiesareaccountedforusingthecostmodelandstatedinthebalancesheetatcostlessaccumulateddepreciation,amortisationandimpairmentlosses,andadoptsadepreciationoramortisationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduse
rights,unlesstheinvestmentpropertyisclassifiedasheldforsale.Fortheimpairmentoftheinvestmentproperties,refertoNote5.20.
Category
| Category | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
5.13Fixedassets
5.13.1Recognitionoffixedassets
FixedassetsrepresentthetangibleassetsheldbytheGroupforuseinproductionofgoods,supplyofservices,forrentalorforadministrativepurposeswithusefullivesoveroneaccountingyear.Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relatedtaxes,andanydirectlyattributableexpenditureforbringingtheassettoworkingconditionforitsintendeduse.Thecostofself-constructedassetsismeasuredinaccordancewiththepolicysetoutinNote5.14.WherethepartsofanitemoffixedassetshavedifferentusefullivesorprovidebenefitstotheGroupinadifferentpattern,thusnecessitatinguseofdifferentdepreciationratesormethods,eachpartisrecognisedasaseparatefixedasset.AnysubsequentcostsincludingthecostofreplacingpartofanitemoffixedassetsarerecognisedasassetswhenitisprobablethattheeconomicbenefitsassociatedwiththecostswillflowtotheGroup,andthecarryingamountofthereplacedpartisderecognised.Thecostsoftheday-to-daymaintenanceoffixedassetsarerecognisedinprofitorlossasincurred.Fixedassetsarestatedinthebalancesheetatcostlessaccumulateddepreciationandimpairmentlosses.
5.13.2DepreciationoffixedassetsThecostofafixedasset,lessitsestimatedresidualvalueandaccumulatedimpairmentlosses,is
depreciatedusingthestraight-linemethodoveritsestimatedusefullife,unlessthefixedassetisclassifiedasheldforsale.Theestimatedusefullives,residualvalueratesanddepreciationratesofeachclassoffixedassetsareasfollows:
Class
| Class | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
| Machineryequipment | 5-30years | 0-5% | 3.2%-20.0% |
| Motorvehicles | 4-12years | 0-5% | 7.9%-25.0% |
Usefullives,estimatedresidualvaluesanddepreciationmethodsarereviewedatleastateachyear-end.
5.13.3Fortheimpairmentofthefixedassets,refertoNote5.20.
5.13.4Disposaloffixedassets
Thecarryingamountofafixedassetisderecognised:
-whenthefixedassetisholdingfordisposal;or-whennofutureeconomicbenefitisexpectedtobegeneratedfromitsuseordisposal.Gainsorlossesarisingfromtheretirementordisposalofanitemoffixedassetaredeterminedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheitem,andarerecognisedinprofitorlossonthedateofretirementordisposal.
5.14Constructioninprogress
Thecostofself-constructedassetsincludesthecostofmaterials,directlabour,capitalisedborrowingcosts,andanyothercostsdirectlyattributabletobringingtheassettoworkingconditionforitsintendeduse.
Aself-constructedassetisclassifiedasconstructioninprogressandtransferredtofixedassetwhenitisreadyforitsintendeduse.Nodepreciationisprovidedagainstconstructioninprogress.Constructioninprogressisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNote5.20).
5.15Borrowingcosts
Borrowingcostsincurreddirectlyattributabletotheacquisition,andconstructionorproductionofaqualifyingassetarecapitalisedaspartofthecostoftheasset.Otherborrowingcostsarerecognisedasfinancialexpenseswhenincurred.Duringthecapitalisationperiod,theamountofinterest(includingamortisationofanydiscountorpremiumonborrowing)tobecapitalisedineachaccountingperiodisdeterminedasfollows:
-Wherefundsareborrowedspecificallyfortheacquisitionandconstructionorproductionofaqualifyingasset,theamountofinteresttobecapitalisedistheinterestexpensecalculatedusingeffectiveinterestratesduringtheperiodlessanyinterestincomeearnedfromdepositingtheborrowedfundsoranyinvestmentincomeonthetemporaryinvestmentofthosefundsbeforebeingusedontheasset.-TotheextentthattheGroupborrowsfundsgenerallyandusesthemfortheacquisitionandconstructionorproductionofaqualifyingasset,theamountofborrowingcostseligibleforcapitalisationisdeterminedbyapplyingacapitalisationratetotheweightedaverageoftheexcessamountsofcumulativeexpenditureontheassetovertheaboveamountsofspecificborrowings.Thecapitalisationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Theeffectiveinterestrateisdeterminedastheratethatexactlydiscountsestimatedfuturecashflowthroughtheexpectedlifeoftheborrowingor,whenappropriate,ashorterperiodtotheinitiallyrecognisedamountoftheborrowings.Duringthecapitalisationperiod,exchangedifferencesrelatedtotheprincipalandinterestonaspecific-purposeborrowingdenominatedinforeigncurrencyarecapitalisedaspartofthecostofthequalifyingasset.Theexchangedifferencesrelatedtotheprincipalandinterestonforeigncurrency
borrowingsotherthanaspecific-purposeborrowingarerecognisedasafinancialexpensewhenincurred.Thecapitalisationperiodistheperiodfromthedateofcommencementofcapitalisationofborrowingcoststothedateofcessationofcapitalisation,excludinganyperiodoverwhichcapitalisationissuspended.Capitalisationofborrowingcostscommenceswhenexpenditurefortheassetisbeingincurred,borrowingcostsarebeingincurredandactivitiesofacquisition,constructionorproductionthatarenecessarytopreparetheassetforitsintendeduseareinprogress,andceaseswhentheassetsbecomereadyfortheirintendeduse.Capitalisationofborrowingcostsshouldceasewhenthequalifyingassetbeingconstructedorproducedhasreacheditsexpectedusableorsaleablecondition.Capitalisationofborrowingcostsissuspendedwhentheacquisition,constructionorproductionactivitiesareinterruptedabnormallyforaperiodofmorethanthreemonths.
5.16Biologicalassets
ThebiologicalassetsoftheGroupareproductivebiologicalassets.Bearerbiologicalassetsarethosethatareheldforthepurposesofproducingagriculturalproduce,renderingofservicesorrental.BearerbiologicalassetsintheGrouparevines.Bearerbiologicalassetsareinitiallymeasuredatcost.Thecostofself-grownorself-bredbearerbiologicalassetsrepresentsthenecessarydirectlyattributableexpenditureincurredbeforesatisfyingtheexpectedproductionandoperatingpurpose,includingcapitalisedborrowingcosts.Bearerbiologicalassets,afterreachingtheexpectedproductionandoperatingpurpose,aredepreciatedusingthestraight-linemethodoveritsestimatedusefullife.Theestimatedusefullives,estimatednetresidualvalueratesanddepreciationratesofbearerbiologicalassetsareasfollows:
Category
| Category | Usefullife(years) | Estimatednetresidualrate(%) | Annualdepreciationrate(%) |
| Vines | 20years | 0% | 5.0% |
TheGroupevaluatestheusefullifeandexpectednetsalvagevaluebyconsideringthenormalproducinglifeofthebearerbiologicalassets.
Usefullives,estimatedresidualvaluesanddepreciationmethodsofbearerbiologicalassetsarereviewedatleastateachyear-end.Anychangesshouldbetreatedaschangesinaccountingestimates.Forabearerbiologicalassetthathasbeensold,damaged,deadordestroyed,anydifferencebetweenthedisposalproceedsandthecarryingamountoftheasset(aftertaxdeduction)shouldberecognisedinprofitorlossfortheperiodinwhichitarises.
5.17Intangibleassets
Intangibleassetsarestatedinthebalancesheetatcostlessaccumulatedamortization(wheretheestimatedusefullifeisfinite)andimpairmentlosses(seeNote5.20).Foranintangibleassetwithfiniteusefullife,itscostestimatedlessresidualvalueandaccumulatedimpairmentlossesisamortisedonthestraight-linemethodoveritsestimatedusefullife,unlesstheintangibleassetisclassifiedasheldforsale.Therespectiveamortisationperiodsforintangibleassetsareasfollows:
Item
| Item | Amortisationperiod(years) |
| Landuserights | 40-50years |
| Softwarelicenses | 5-10years |
| Trademark | 10years |
AnintangibleassetisregardedashavinganindefiniteusefullifeandisnotamortisedwhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Atthebalancesheetdate,theGrouphadintangibleassetswithinfiniteusefullivesincludingthelanduserightsandtrademarks.LanduserightswithinfiniteusefullivesarepermanentlanduserightswithpermanentownershipheldbytheGroupundertherelevantChileandAustralianlawsarisingfromtheGroup’sacquisitionofVi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSpA.(collectivelyreferredtoasthe"ChileIndomitaWineGroup"),andtheacquisitionofKilikanoonEstatePtyLtd.(hereinafterreferredtoasthe"AustraliaKilikanoonEstate"),thereforetherewasnoamortisation.TherighttousetrademarkreferstothetrademarkheldbytheGrouparisingfromtheacquisitionoftheChileIndomitaWineGroupandtheAustraliaKilikanoonEstatewithinfiniteusefullives.Thevaluationoftrademarkwasbasedonthetrendsinthemarketandcompetitiveenvironment,productcycle,andmanaginglong-termdevelopmentstrategy.Thosebasesindicatedthe
trademarkwillprovidenetcashflowstotheGroupwithinanuncertainperiod.TheusefullifeisindefiniteasitwashardtopredicttheperiodthatthetrademarkwouldbringeconomicbenefitstotheGroup.
5.18Goodwill
Theinitialcostofgoodwillrepresentstheexcessofcostofacquisitionovertheacquirer’sinterestinthefairvalueoftheidentifiablenetassetsoftheacquireeunderabusinesscombinationnotinvolvingentitiesundercommoncontrol.Goodwillisnotamortisedandisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNote5.20).Ondisposalofanassetgrouporasetofassetgroups,anyattributablegoodwilliswrittenoffandincludedinthecalculationoftheprofitorlossondisposal.
5.19Long-termdeferredexpensesLong-termdeferredexpensesareamortisedusingastraight-linemethodwithinthebenefitperiod.Therespectiveamortisationperiodsforsuchexpensesareasfollows:
Item
| Item | Amortisationperiod |
| Landrequisitionfee | 50years |
| Landleasefee | 50years |
| Greeningfee | 5-20years |
| Renovationfee | 3-5years |
| Others | 3years |
5.20Impairmentofassetsotherthaninventoriesandfinancialassets
Thecarryingamountsofthefollowingassetsarereviewedateachbalancesheetdatebasedoninternalandexternalsourcesofinformationtodeterminewhetherthereisanyindicationofimpairment:
-fixedassets
-constructioninprogress-intangibleassets-Bearerbiologicalassets-investmentpropertiesmeasuredusingacostmodel-long-termequityinvestments-goodwill-long-termdeferredexpenses,etc.Ifanyindicationexists,therecoverableamountoftheassetisestimated.Inaddition,theGroupestimatestherecoverableamountsofgoodwillandintangibleassetswithinfiniteusefullivesateachyear-end,irrespectiveofwhetherthereisanyindicationofimpairment.Goodwillisallocatedtoeachassetgroup,orsetofassetgroups,thatisexpectedtobenefitfromthesynergiesofthecombinationforthepurposeofimpairmenttesting.Therecoverableamountofanasset(orassetgroup,setofassetgroups)isthehigherofitsfairvalue(seeNote5.21)lesscoststosellanditspresentvalueofexpectedfuturecashflows.Anassetgroupiscomposedofassetsdirectlyrelatedtocash-generationandisthesmallestidentifiablegroupofassetsthatgeneratescashinflowsthatarelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Thepresentvalueofexpectedfuturecashflowsofanassetisdeterminedbydiscountingthefuturecashflows,estimatedtobederivedfromcontinuinguseoftheassetandfromitsultimatedisposal,totheirpresentvalueusinganappropriatepre-taxdiscountrate.Animpairmentlossisrecognisedinprofitorlosswhentherecoverableamountofanassetislessthanitscarryingamount.Aprovisionforimpairmentoftheassetisrecognisedaccordingly.Impairmentlossesrelatedtoanassetgrouporasetofassetgroupsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheassetgrouporsetofassetgroups,andthentoreducethecarryingamountoftheotherassetsintheassetgrouporsetofassetgroupsonaproratabasis.However,suchallocationwouldnotreducethecarryingamountofanassetbelowthehighestofitsfairvaluelesscoststosell(ifmeasurable),itspresentvalueofexpectedfuturecashflows(ifdeterminable)andzero.Onceanimpairmentlossisrecognised,itisnotreversedinasubsequentperiod.
5.21Fairvaluemeasurement
Unlessotherwisespecified,theGroupmeasuresfairvalueasfollows:
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Whenmeasuringfairvalue,theGrouptakesintoaccountthecharacteristicsoftheparticularassetorliability(includingtheconditionandlocationoftheassetandrestrictions,ifany,onthesaleoruseoftheasset)thatmarketparticipantswouldconsiderwhenpricingtheassetorliabilityatthemeasurementdate,andusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataandotherinformationareavailabletomeasurefairvalue.Valuationtechniquesmainlyincludethemarketapproach,theincomeapproachandthecostapproach.
5.22Revenue
TheGrouprecognizestherevenueuponfulfillmentofitsperformanceobligationsinthecontract,thatis,theclientobtainscontrolrightovertherelevantgoodsorservices.Iftherearetwoormoreperformanceobligationsunderthecontact,whichshallbefulfilled,theGroupwillapportionthetransactionpricetovariousindividualperformanceobligationsinaccordancewiththerelativeproportionofseparatesellingpricesofvariousgoodsorservicesundertheseperformanceobligationsonthecommencementdateofthecontract,andmeasureandrecognizetherevenueinaccordancewiththetransactionpricesapportionedtovariousindividualperformanceobligations.Forcontractswithqualityassuranceclauses,theGroupanalyzesthenatureofthequalityassuranceprovided.Ifqualityassuranceprovidesaseparateserviceinadditiontoensuringtotheclientthatthegoodssoldmeettheestablishedstandards,theGroupwilltreatitasanindividualperformanceobligation.Otherwise,theGroupconductsaccountingtreatmentinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.ThetransactionpricereferstotheamountofconsiderationthattheGroupexpectstobeentitledtoreceiveduetothetransferofgoodsorservicestotheclient,excludingpaymentsreceivedonbehalfofthirdparties.ThetransactionpricerecognizedbytheGroupdoesnotexceedtheamountatwhichtheaccumulatedrecognizedrevenuewillmostlikelynotundergoasignificantreversalwhentherelevantuncertaintyiseliminated.Itisexpectedthatthemoneyreturnedtotheclientwillberegardedasa
returnliabilityandnotincludedinthetransactionprice.Intheeventthatthereisasignificantfinancingpartinthecontract,theGroupdeterminesthetransactionpricebasedontheamountpayableincashwhentheclientobtainscontrolrightovertherelevantgoodsorservices.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedbytheeffectiveinterestmethodduringthecontractperiod.Fromthedayoftheenforcementofthecontract,theGroupexpectsthattheintervalbetweentheclient'sacquisitionofcontrolrightoverthegoodsorservicesandtheclient'spaymentofthepricewillnotexceedoneyear,regardlessofthesignificantfinancingpartinthecontract.IftheGroupmeetsoneofthefollowingconditions,thefulfillmentofitsperformanceobligationsinacertainperiodwillbedeemed,orthefulfillmentofitsperformanceobligationsatacertaintimepointwillbedeemed:
-TheclientobtainsandconsumestheeconomicbenefitswhiletheGroupfulfillstheperformanceobligation;-TheclientmanagestocontrolthegoodsinprocesswhiletheGroupfulfillstheperformanceobligation.-GoodsproducedduringtheperformanceperiodhaveirreplaceablepurposesandtheGroupisentitledtochargemoneyfortheperformanceaccumulatedandhasbeenfinisheduntilthecurrenttimewithinthewholecontractperiod.Foranyperformanceobligationsfulfilledinacertainperiod,theGroupwillrecognizerevenuewithinthecertainperiodinaccordancewiththeperformanceprogress.IftheperformanceprogresscannotbedeterminedreasonablyandcostsincurredareexpectedtobecompensatedoftheGroup,therevenuewillbeascertainedaccordingtothecostsincurreduntiltheperformanceprogressisdeterminedreasonably.Intermsofperformanceobligationsfulfilledatacertaintimepoint,theGroupwillrecognizerevenuewhentheclientgainscontrolrightovertherelevantgoodsorservices.Whenitcomestodeterminingwhetheraclienthasacquiredthecontrolrightovergoodsorservices,theGroupwillconsiderthefollowingconditions:
-TheGrouphasthecurrentrighttoreceivepaymentforthegoodsorservices;-TheGrouphastransferredthegoodsinkindtotheclient;-TheGrouphastransferredthelegalownershipoftheproductorthemainrisksandrewardsofownershiptotheclient;-Theclienthasacceptedthegoodsorservices,etc.
TheGrouphastransferredthegoodsorservicestotheclientandthushastherighttoreceivecorrespondingconsideration(andtherightisdependableonfactorsotherthantimelapses)ascontractasset,whichissubjecttoprovisionofimpairmentonthebasisofexpectedcreditloss.TherightenjoyedbytheGroup(onlydependsontimelapses)toreceiveconsiderationunconditionallyfromtheclientshallbepresentedunderaccountreceivables.TheGrouppresentstheobligationoftransferringgoodsorservicesfortheclientduetotheconsiderationreceivedorreceivableascontractliabilities.
5.23Employeebenefits
5.23.1Short-termemployeebenefits
Employeewagesorsalaries,bonuses,socialsecuritycontributionssuchasmedicalinsurance,workinjuryinsurance,maternityinsuranceandhousingfund,measuredattheamountincurredoraccuredattheapplicablebenchmarksandrates,arerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
5.23.2Post-employmentbenefits–definedcontributionplans
PursuanttotherelevantlawsandregulationsofthePeople’sRepublicofChina,theGroupparticipatedinadefinedcontributionbasicpensioninsuranceplaninthesocialinsurancesystemestablishedandmanagedbygovernmentorganisations.TheGroupmakescontributionstobasicpensioninsuranceplansbasedontheapplicablebenchmarksandratesstipulatedbythegovernment.Basicpensioninsurancecontributionspayablearerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
5.23.3Terminationbenefits
WhentheGroupterminatestheemploymentwithemployeesbeforetheemploymentcontractsexpire,orprovidescompensationunderanoffertoencourageemployeestoacceptvoluntaryredundancy,aprovisionisrecognisedwithacorrespondingexpenseinprofitorlossattheearlierofthefollowingdates:
-WhentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofan
employeeterminationplanoracurtailmentproposal;-WhentheGrouphasaformaldetailedrestructuringplaninvolvingthepaymentofterminationbenefitsandhasraisedavalidexpectationinthoseaffectedthatitwillcarryouttherestructuringbystartingtoimplementthatplanorannouncingitsmainfeaturestothoseaffectedbyit.
5.24GovernmentgrantsGovernmentgrantsarenon-reciprocaltransfersofmonetaryornon-monetaryassetsfromthegovernmenttotheGroupexceptforcapitalcontributionsfromthegovernmentinthecapacityasaninvestorintheGroup.AgovernmentgrantisrecognisedwhenthereisreasonableassurancethatthegrantwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtothegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasuredatfairvalue.GovernmentgrantsrelatedtoassetsaregrantswhoseprimaryconditionisthattheGroupqualifyingforthemshouldpurchase,constructorotherwiseacquirelong-termassets.Governmentgrantsrelatedtoincomearegrantsotherthanthoserelatedtoassets.Agovernmentgrantrelatedtoanassetisrecognisedasdeferredincomeandamortisedovertheusefullifeoftherelatedassetonareasonableandsystematicmannerasotherincomeornon-operatingincome.AgrantthatcompensatestheCompanyforexpensesorlossestobeincurredinthefutureisrecognisedasdeferredincome,andincludedinotherincomeornon-operatingincomeintheperiodsinwhichtheexpensesorlossesarerecognised,orincludedinotherincomeornon-operatingincomedirectly.
5.25Incometax
Currenttaxanddeferredtaxarerecognisedinprofitorlossexcepttotheextentthattheyrelatetoabusinesscombinationoritemsrecogniseddirectlyinequity(includingothercomprehensiveincome).Currenttaxistheexpectedtaxpayablecalculatedattheapplicabletaxrateontaxableincomefortheyear,plusanyadjustmenttotaxpayableinrespectofpreviousyears.
Atthebalancesheetdate,currenttaxassetsandliabilitiesareoffsetonlyiftheGrouphasalegallyenforceablerighttosetthemoffandalsointendseithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.Deferredtaxassetsanddeferredtaxliabilitiesarisefromdeductibleandtaxabletemporarydifferencesrespectively,beingthedifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheirtaxbases,whichincludethedeductiblelossesandtaxcreditscarriedforwardtosubsequentperiods.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilised.Deferredtaxisnotrecognisedforthetemporarydifferencesarisingfromtheinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusinesscombinationandthataffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Deferredtaxisnotrecognisedfortaxabletemporarydifferencesarisingfromtheinitialrecognitionofgoodwill.Atthebalancesheetdate,deferredtaxismeasuredbasedonthetaxconsequencesthatwouldfollowfromtheexpectedmannerofrecoveryorsettlementofthecarryingamountsoftheassetsandliabilities,usingtaxratesenactedatthebalancesheetdatethatareexpectedtobeappliedintheperiodwhentheassetisrecoveredortheliabilityissettled.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate,andisreducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitswillbeutilised.Suchreductionisreversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitswillbeavailable.Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesareoffsetifallofthefollowingconditionsaremet:
-thetaxableentityhasalegallyenforceablerighttooffsetcurrenttaxliabilitiesandcurrenttaxassets;-theyrelatetoincometaxesleviedbythesametaxauthorityoneither:thesametaxableentity;ordifferenttaxableentitieswhichintendeithertosettlethecurrenttaxliabilitiesandcurrenttaxassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesordeferredtaxassetsareexpectedtobesettledorrecovered.
5.26OperatingleasesandfinanceleasesAleaseisclassifiedaseitherafinanceleaseoranoperatinglease.Afinanceleaseisaleasethattransferssubstantiallyalltherisksandrewardsincidentaltoownershipofaleasedassettothelessee,irrespectiveofwhetherthelegaltitletotheassetiseventuallytransferred.Anoperatingleaseisaleaseotherthanafinancelease.
5.26.1OperatingleaseassetsRentalpaymentsunderoperatingleasesarerecognisedaspartofthecostofanotherrelatedassetorasexpensesonastraight-linebasisovertheleaseterm.Contingentrentalpaymentsareexpensedasincurred.
5.26.2AssetsleasedoutunderoperatingleasesFixedassetsleasedoutunderoperatingleases,exceptforinvestmentproperties(seeNote5.12),aredepreciatedinaccordancewiththeGroup’sdepreciationpoliciesdescribedinNote5.13.2.ImpairmentlossesarerecognisedinaccordancewiththeaccountingpolicydescribedinNote5.20.Incomederivedfromoperatingleasesisrecognisedinprofitorlossusingthestraight-linemethodovertheleaseterm.Ifinitialdirectcostsincurredinrespectoftheassetsleasedoutarematerial,thecostsareinitiallycapitalisedandsubsequentlyamortisedinprofitorlossovertheleasetermonthesamebasisastheleaseincome.Otherwise,thecostsarechargedtoprofitorlossimmediately.
5.27Assetsheldforsale
TheGroupclassifiedanon-currentassetordisposalgroupasheldforsalewhenthecarryingamountofanon-currentassetordisposalgroupwillberecoveredthroughasaletransactionratherthanthroughcontinuinguse.Adisposalgroupreferstoagroupofassetstobedisposedof,bysaleorotherwise,togetherasawholeinasingletransactionandliabilitiesdirectlyassociatedwiththoseassetsthatwillbetransferredinthetransaction.
Anon-currentassetordisposalgroupisclassifiedasheldforsalewhenallthefollowingcriteriaaremet:
-Accordingtothecustomarypracticesofsellingsuchassetordisposalgroupinsimilartransactions,thenon-currentassetordisposalgroupmustbeavailableforimmediatesaleintheirpresentconditionsubjecttotermsthatareusualandcustomaryforsalesofsuchassetsordisposalgroups;-Itssaleishighlyprobable,thatis,theGrouphasmadearesolutiononasaleplanandhasobtainedafirmpurchasecommitment.Thesaleistobecompletedwithinoneyear.Non-currentassetsordisposalgroupsheldforsalearestatedatthelowerofcarryingamountandfairvaluelesscoststosell(exceptfinancialassets,deferredtaxassetsandinvestmentpropertiessubsequentmeasuredatfairvalueinitiallyandsubsequently.Anyexcessofthecarryingamountoverthefairvaluelesscoststosellisrecognisedasanimpairmentlossinprofitorloss.
5.28Profitdistributions
Dividendsorprofitdistributionsproposedintheprofitappropriationplan,whichwillbeapprovedafterthebalancesheetdate,arenotrecognisedasaliabilityatthebalancesheetdatebutaredisclosedinthenotesseparately.
5.29RelatedpartiesIfapartyhasthepowertocontrol,jointlycontrolorexercisesignificantinfluenceoveranotherparty,orviceversa,orwheretwoormorepartiesaresubjecttocommoncontrolorjointcontrolfromanotherparty,theyareconsideredtoberelatedparties.Relatedpartiesmaybeindividualsorenterprises.EnterpriseswithwhichtheCompanyisundercommoncontrolonlyfromtheStateandthathavenootherrelatedpartyrelationshipsarenotregardedasrelatedparties.Inadditiontotherelatedpartiesstatedabove,theCompanydeterminesrelatedpartiesbasedonthedisclosurerequirementsofAdministrativeProceduresontheInformationDisclosuresofListedCompaniesissuedbytheCSRC.
5.30Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparklingwineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup'sinternalorganisationstructure,managementrequirementsandinternalreportingsystem,theGroup'soperationisdividedintofourparts:China,Spain,France,ChileandAustralia.Themanagementperiodicallyevaluatessegmentresults,inordertoallocateresourcesandevaluateperformances.In2020,over89%ofrevenue,morethan98%ofprofitandover92%ofnon-currentassetsderivedfromChina/arelocatedinChina.ThereforetheGroupdoesnotneedtodiscloseadditionalsegmentreportinformation.
5.31SignificantaccountingestimatesandjudgementsThepreparationofthefinancialstatementsrequiresmanagementtomakeestimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Estimatesaswellasunderlyingassumptionsanduncertaintiesinvolvedarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.
5.31.1Significantaccountingestimates
Exceptforaccountingestimatesrelatingtodepreciationandamortisationofassetssuchasinvestmentproperties,fixedassets,bearerbiologicalassetsandintangibleassets(seeNotes5.12,13,16and17)andprovisionforimpairmentofvarioustypesofassets(seeNotes7.2,5,6,10,11,12,13,14andNotes17.1and3).Othersignificantaccountingestimatesareasfollows:
(i)Note7.16–Recognitionofdeferredtaxasset;(ii)Note11.–Fairvaluemeasurementsoffinancialinstruments.
5.32Changesinsignificantaccountingpoliciesandaccountingestimates
5.32.1Changesinsignificantaccountingpolicies
TheGroupimplementedtheAccountingStandardsforBusinessEnterprisesNo.14-RevenuesrevisedbytheMinistryofFinancein2017onJanuary1,2020.
AccountingStandardsforBusinessEnterprisesNo.14-Revenues(Revision)("NewRevenueStandards")TheNewRevenueStandardsreplacetheoriginalrevenueones.Undertheoriginalrevenuestandards,theGroupusedthetransferofriskpremiumasthecriterionfordeterminingthetimingofrevenuerecognition.TheGroup'srevenuefromsalesofgoodsisrecognizedwhenthefollowingconditionsaremetatthesametime:themainrisksandrewardsofpropertyinthegoodshavebeentransferredtothebuyer,theamountofrevenueandrelatedcostscanbereliablymeasured,andrelatedeconomicbenefitsarelikelytoflowintotheGroup.TheGroupneitherretainsthecontinuingmanagementrightsthatareusuallyassociatedwithownership,nordoesitexerciseeffectivecontroloverthesoldgoods.UndertheNewRevenueStandards,theGroupusedthetransferofcontrolrightasthecriterionfordeterminingthetimingofrevenuerecognition:
-TheGrouprecognizestherevenueuponfulfillmentofitsperformanceobligationsinthecontract,thatis,theclientobtainscontrolrightovertherelevantgoodsorservices.IftheGroupmeetsacertaincondition,thefulfillmentofitsperformanceobligationsinacertainperiodwillbedeemed,orthefulfillmentofitsperformanceobligationsatacertaintimepointwillbedeemed.Iftherearetwoormoreperformanceobligationsunderthecontact,whichshallbefulfilled,theGroupwillapportionthetransactionpricetovariousindividualperformanceobligationsinaccordancewiththerelativeproportionofseparatesellingpricesofvariousgoodsorservicesundertheseperformanceobligationsonthecommencementdateofthecontract,andmeasureandrecognizetherevenueinaccordancewiththetransactionpricesapportionedtovariousindividualperformanceobligations.ThetransactionpricereferstotheamountofconsiderationthattheGroupexpectstobeentitledtoreceiveduetothetransferofgoodsorservicestotheclient,excludingpaymentsreceivedonbehalfofthirdparties.ThetransactionpricerecognizedbytheGroupdoesnotexceedtheamountatwhichtheaccumulatedrecognizedrevenuewillmostlikelynotundergoasignificantreversalwhentherelevantuncertaintyiseliminated.Itisexpectedthatthemoneyreturnedtotheclientwillberegardedasareturnliabilityandnotincludedinthetransactionprice.Intheeventthatthereisasignificantfinancingpartinthecontract,theGroupdeterminesthetransactionpricebasedontheamountpayableincashwhentheclientobtainscontrolrightovertherelevantgoodsorservices.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedbytheeffectiveinterestmethodduringthecontractperiod.Fromthedayoftheenforcementofthecontract,theGroupexpectsthattheintervalbetweentheclient'sacquisitionofcontrolrightoverthegoodsorservicesandtheclient'spaymentofthepricewillnotexceedoneyear,regardlessofthesignificantfinancingpartinthecontract.
-TheGroupadjustedrelevantaccountingpoliciesinaccordancewiththespecificprovisionsoftheNewRevenueStandardsonspecificmattersortransactions,suchascontractcosts,saleswithsalesreturnclauses,andsalesdivisionswithqualityassuranceclauses.-InaccordancewiththeNewRevenueStandards,theGroup,basedontherelationshipbetweenperformanceobligationsandclientpayments,presentscontractassetsorliabilitiesinthebalancesheet.Atthesametime,theGroupprovidesmoredisclosuresonrevenue-relatedinformationdisclosurerequirementsinaccordancewiththeNewRevenueStandards,suchasrelevantaccountingpolicies,judgmentswithsignificantinfluence(themeasurementofvariableconsideration,themethodofallocatingthetransactionpricetoeachindividualperformanceobligation,theassumptionusedinestimatingthestand-alonesellingpriceofeachindividualperformanceobligation,etc.),informationrelatedtoclientcontracts(revenuerecognitionforthecurrentperiod,contractbalance,performanceobligations,etc.),andinformationonassetsrelatedtocontractcosts.TheGroup,basedonthecumulativeimpactofthefirstimplementationoftheNewRevenueStandards,adjustedtheretainedearningsatthebeginningof2020andtheamountofotherrelateditemsinthefinancialstatements,exceptforcomparativefinancialstatementdata.
5.32.2ChangesinsignificantaccountingestimatesNil
5.32.3Particularsoffirstimplementationofnewincomestandardstoadjustthefirstimplementationofrelateditemsinthefinancialstatementsatthebeginningoftheyear
ConsolidatedBalanceSheet
Unit:Yuan
Item
| Item | December31,2019 | January1,2020 | Adjustments |
| Currentassets: | |||
| Monetaryfund | 1,565,783,980 | 1,565,783,980 | |
| Settlementreserves | |||
| Lendingfunds | |||
| Tradablefinancialassets | |||
| Derivativefinancialassets | |||
| Billsreceivable | |||
| Accountsreceivable | 266,218,153 | 266,218,153 | |
| Receivablesfinancing | 316,470,229 | 316,470,229 | |
| Advancepayment | 67,707,537 | 67,707,537 | |
| Premiumreceivable |
Item
| Item | December31,2019 | January1,2020 | Adjustments |
| Reinsuranceaccountsreceivable | |||
| Receivablereservesforreinsurancecontract | |||
| Otherreceivables | 24,246,812 | 24,246,812 | |
| Including:Interestreceivable | 148,927 | 148,927 | |
| Dividendsreceivable | |||
| Redemptorymonetarycapitalforsale | |||
| Inventories | 2,872,410,407 | 2,872,410,407 | |
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | 267,424,938 | 267,424,938 | |
| Totalcurrentassets | 5,380,262,056 | 5,380,262,056 | |
| Non-currentassets: | |||
| Offeringloansandimprest | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | 43,981,130 | 43,981,130 | |
| Otherinvestmentsinequityinstruments | |||
| Othernon-currentfinancialassets | |||
| Investmentrealestate | 29,714,586 | 29,714,586 | |
| Fixedassets | 5,894,068,898 | 5,894,068,898 | |
| Constructioninprogress | 567,478,833 | 567,478,833 | |
| Productivebiologicalassets | 202,425,286 | 202,425,286 | |
| Oil-and-gasassets | |||
| Right-of-useassets | |||
| Intangibleassets | 651,946,355 | 651,946,355 | |
| Developmentexpenditure | |||
| Goodwill | 141,859,193 | 141,859,193 | |
| Long-termprepaidexpenses | 277,595,408 | 277,595,408 | |
| Deferredincometaxassets | 264,926,503 | 264,926,503 | |
| Othernon-currentassets | 193,674,320 | 193,674,320 | |
| Totalnon-currentassets | 8,267,670,512 | 8,267,670,512 | |
| Totalassets | 13,647,932,568 | 13,647,932,568 | |
| Currentliabilities: | |||
| Short-termloans | 754,313,744 | 754,313,744 | |
| BorrowingsfromtheCentralBank | |||
| Loansfromotherbanksandotherfinancialinstitutions | |||
| Tradablefinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Billspayable | |||
| Accountspayable | 570,252,612 | 570,252,612 | |
| Advancesfromcustomers | 120,609,499 | -120,609,499 | |
| Contractliabilities | 106,734,070 | 106,734,070 | |
| Financialassetssoldforrepurchase |
Item
| Item | December31,2019 | January1,2020 | Adjustments |
| Depositsfromcustomersandinterbank | |||
| Receivingsfromvicariouslytradedsecurities | |||
| Receivingsfromvicariouslysoldsecurities | |||
| Employeeremunerationspayable | 234,459,116 | 234,459,116 | |
| Taxesandduespayable | 375,169,971 | 375,169,971 | |
| Otherpayables | 450,532,485 | 450,532,485 | |
| Including:Interestpayable | 758,047 | 758,047 | |
| Dividendspayable | 1,366,559 | 1,366,559 | |
| Handlingchargesandcommissionspayable | |||
| Dividendpayableforreinsurance | |||
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | 150,826,221 | 150,826,221 | |
| Othercurrentliabilities | 13,875,429 | 13,875,429 | |
| Totalcurrentliabilities | 2,656,163,648 | 2,656,163,648 | |
| Non-currentliabilities: | |||
| Reservesforinsurancecontracts | |||
| Long-termborrowings | 128,892,501 | 128,892,501 | |
| Bondspayable | |||
| Including:Preferredstock | |||
| Perpetualbonds | |||
| Leaseliabilities | |||
| Long-termaccountspayable | 191,000,000 | 191,000,000 | |
| Long-termemployeeremunerationspayable | |||
| Estimatedliabilities | |||
| Deferredincome | 70,701,288 | 70,701,288 | |
| Deferredincometaxliabilities | 14,691,424 | 14,691,424 | |
| Othernon-currentliabilities | 7,645,777 | 7,645,777 | |
| Totalnon-currentliabilities | 412,930,990 | 412,930,990 | |
| Totalliabilities | 3,069,094,638 | 3,069,094,638 | |
| Owner’sequity: | |||
| Capitalstock | 685,464,000 | 685,464,000 | |
| Otherequityinstruments | |||
| Including:Preferredstock | |||
| Perpetualbonds | |||
| Capitalsurplus | 565,050,422 | 565,050,422 | |
| Minus:Treasurystock | |||
| Othercomprehensiveincome | -4,235,583 | -4,235,583 | |
| Specialreserves | |||
| Surplusreserves | 342,732,000 | 342,732,000 | |
| Generalriskpreparation | |||
| Undistributedprofit | 8,719,899,359 | 8,719,899,359 | |
| Totalowner’sequitiesattributabletotheparentcompany | 10,308,910,198 | 10,308,910,198 | |
| Minorityequity | 269,927,732 | 269,927,732 | |
| Totalowner’sequities | 10,578,837,930 | 10,578,837,930 | |
| Totalliabilitiesandowner’sequities | 13,647,932,568 | 13,647,932,568 |
BalanceSheetoftheParentCompany
Unit:Yuan
Item
| Item | December31,2019 | January1,2020 | Adjustments |
| Currentassets: | |||
| Monetaryfund | 710,505,269 | 710,505,269 | |
| Tradablefinancialassets | |||
| Derivativefinancialassets | |||
| Billsreceivable | |||
| Accountsreceivable | 1,988,326 | 1,988,326 | |
| Receivablesfinancing | 41,679,635 | 41,679,635 | |
| Advancepayment | 776,539 | 776,539 | |
| Otherreceivables | 586,424,958 | 586,424,958 | |
| Including:Interestreceivable | 90,355 | 90,355 | |
| Dividendsreceivable | 200,000,000 | 200,000,000 | |
| Inventories | 434,007,808 | 434,007,808 | |
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | 39,130,466 | 39,130,466 | |
| Totalcurrentassets | 1,814,513,001 | 1,814,513,001 | |
| Non-currentassets: | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | 7,432,422,621 | 7,432,422,621 | |
| Otherinvestmentsinequityinstruments | |||
| Othernon-currentfinancialassets | |||
| Investmentrealestate | 29,714,586 | 29,714,586 | |
| Fixedassets | 261,137,072 | 261,137,072 | |
| Constructioninprogress | |||
| Productivebiologicalassets | 121,414,096 | 121,414,096 | |
| Oilandgasassets | |||
| Right-of-useassets | |||
| Intangibleassets | 64,864,913 | 64,864,913 | |
| Developmentexpenditure | |||
| Goodwill | |||
| Long-termprepaidexpenses | |||
| Deferredincometaxassets | 16,255,870 | 16,255,870 | |
| Othernon-currentassets | 1,427,700,000 | 1,427,700,000 | |
| Totalnon-currentassets | 9,353,509,158 | 9,353,509,158 | |
| Totalassets | 11,168,022,159 | 11,168,022,159 | |
| Currentliabilities: | |||
| Short-termloans | 150,000,000 | 150,000,000 | |
| Tradablefinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Billspayable |
Item
| Item | December31,2019 | January1,2020 | Adjustments |
| Accountspayable | 63,655,240 | 63,655,240 | |
| Advancesfromcustomers | |||
| Contractliabilities | |||
| Employeeremunerations | 70,445,847 | 70,445,847 | |
| Taxesandduespayable | 6,052,456 | 6,052,456 | |
| Otherpayables | 660,149,563 | 660,149,563 | |
| Including:Interestpayable | 181,250 | 181,250 | |
| Dividendspayable | |||
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | |||
| Othercurrentliabilities | |||
| Totalcurrentliabilities | 950,303,106 | 950,303,106 | |
| Non-currentliabilities: | |||
| Long-termborrowings | |||
| Bondspayable | |||
| Including:Preferredstock | |||
| Perpetualbonds | |||
| Leaseliabilities | |||
| Long-termaccountspayable | |||
| Long-termemployeeremunerationpayable | |||
| Estimatedliabilities | |||
| Deferredincome | 9,176,315 | 9,176,315 | |
| Deferredincometaxliabilities | |||
| Othernon-currentliabilities | 3,146,707 | 3,146,707 | |
| Totalnon-currentliabilities | 12,323,022 | 12,323,022 | |
| Totalliabilities | 962,626,128 | 962,626,128 | |
| Owner’sequity: | |||
| Capitalstock | 685,464,000 | 685,464,000 | |
| Otherequityinstruments | |||
| Including:Preferredstock | |||
| Perpetualbonds | |||
| Capitalsurplus | 557,222,454 | 557,222,454 | |
| Minus:Treasurystock | |||
| Othercomprehensiveincome | |||
| Specialreserves | |||
| Surplusreserves | 342,732,000 | 342,732,000 | |
| Undistributedprofit | 8,619,977,577 | 8,619,977,577 | |
| Totalowner’sequities | 10,205,396,031 | 10,205,396,031 | |
| Totalliabilitiesandowner’sequities | 11,168,022,159 | 11,168,022,159 |
6.Taxes
6.1Themaintaxesandtaxratesareasfollows:
6.2Taxincentives
NingxiaChangyuGrapeGrowingCo.,Ltd.("NingxiaGrowing"),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowing,isincorporatedinNingxiaHuizuAutonomousRegion.Accordingtoclause27ofPRCCorporateIncomeTaxandclause86ofPRCCorporateIncomeTaxMeasuresforImplementation,NingxiaGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuGrapeGrowingCo.,Ltd.("GrapeGrowing"),abranchoftheCompany,whoseprincipalactivityisgrapegrowing,isincorporatedinZhifuDistrict,YantaiCity,ShandongProvince.Accordingtoclause27ofPRCCorporateIncomeTaxandclause86ofPRCCorporateIncomeTaxMeasuresforImplementation,GrapeGrowingenjoysanexemptionofcorporateincometax.BeijingChangyuAFIPAgricultureDevelopmentCo.,Ltd("AgricultureDevelopment"),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowing,isincorporatedinMiyunCounty,Beijing.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,AgricultureDevelopmentenjoysanexemptionofcorporateincometax.XinjiangTianzhuCo.,Ltd("XinjiangTianzhu"),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangUygurAutonomousRegion.InaccordancewiththeNoticeonTaxPolicyIssuesconcerningFurtherImplementationoftheWesternChinaDevelopmentStrategy(CaiShui[2011]No.58),XinjiangTianzhuisqualifiedtoenjoypreferentialtaxationpolicies,whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2015to2020.
Taxcategory
| Taxcategory | Taxationbasis | Taxrates |
| Valueaddedtax | Leviedonthebalancebetweentheoutputtaxcalculatedbasedontaxableincomeandtheinputtaxallowedtobedeductedincurrentperiod | 13%,9%,6%(China),20%(France),21%(Spain),19%(Chile),10%(Australia) |
| Consumptiontax | Leviedontaxableincome | 10%oftheprice,20%ofthepriceand1,000Yuaneachton(China) |
| Citydevelopmenttax | Leviedoncirculationtaxactuallypaid | 7%(China) |
| Corporateincometax | Leviedontaxableincome | 25%(China),28%(France),28%(Spain),27%(Chile),30%(Australia) |
XinjiangBabaoBaronChateauCo.,Ltd.("ShiheziChateau"),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangUygurAutonomousRegion.InaccordancewiththeNoticeonTaxPolicyIssuesconcerningFurtherImplementationoftheWesternChinaDevelopmentStrategy(CaiShui[2011]No.58),ShiheziChateauisqualifiedtoenjoypreferentialtaxationpolicies,whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2015to2020.
7.Notestoitemsintheconsolidatedfinancialstatement
7.1Monetarycapital
Unit:Yuan
Item
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 38,910 | 59,975 |
| Bankdeposit | 1,384,635,885 | 1,474,489,177 |
| Othermonetarycapital | 91,532,260 | 91,234,828 |
| Total | 1,476,207,055 | 1,565,783,980 |
| Including:Totaloverseasdeposits | 49,084,619 | 42,752,630 |
AsatJune30,2020,therestrictedbankdepositdetailsarelistedasfollows:
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Housingfundoftheunit | 2,684,406 | 2,647,877 |
| Total | 2,684,406 | 2,647,877 |
AsatJune30,2020,thedetailsofothermonetaryfundsarelistedasfollows:
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| PledgeoffixeddepositsbyYantaiChangyuWineResearch,DevelopmentandManufactureCo.,Ltd.(“R&DCompany”) | 46,100,000 | 46,100,000 |
| Guaranteeddepositspaidfortheletterofcredit | 44,540,850 | 44,540,850 |
| AccountbalanceofAlipay | 685,691 | 583,978 |
| Guarantymoneyfortheunitcard | 195,719 | - |
| GuarantymoneyforICBCplatform | 10,000 | 10,000 |
| Total | 91,532,260 | 91,234,828 |
AsatJune30,2020,thebankdepositsoftheGroupincludingshort-termfixeddepositsrangingfrom3monthsto12monthsamountedtoRMB81,200,000Yuan(December31,2019:RMB106,128,600),withtheinterestratesrangingfrom1.40%to2.75%.
7.2Billsreceivable
7.2.1Classificationofbillsreceivable
Unit:Yuan
Type
| Type | Endingbalance | Beginningbalance | ||||||||
| Bookbalance | Provisionforbaddebts | Bookvalue | Bookbalance | Provisionforbaddebts | Bookvalue | |||||
| Amount | Proportion | Amount | Accruedproportion | Amount | Proportion | Amount | Accruedproportion | |||
| Accountsreceivableforwhichprovisionforbaddebtsisaccruedonasingleitembasis | ||||||||||
| Accountsreceivableforwhichprovisionforbaddebtsisaccruedonacombinedbasis | 184,942,173 | 100% | 17,203,540 | 9.30% | 167,738,633 | 283,522,528 | 100% | 17,304,375 | 6.10% | 266,218,153 |
| Total | 184,942,173 | 100% | 17,203,540 | 9.30% | 167,738,633 | 283,522,528 | 100% | 17,304,375 | 6.10% | 266,218,153 |
Provisionforbaddebtsaccruedonacombinedbasis:
Unit:Yuan
| Name | Endingbalance | ||
| Bookbalance | Provisionforbaddebts | Accruedproportion | |
| Amountsduefromrelatedparties | 2,005,182 | 67,379 | 3.40% |
| Amountsduefromothercustomers | 182,936,991 | 17,136,161 | 9.40% |
| Total | 184,942,173 | 17,203,540 | 9.30% |
Disclosedbyage:
Unit:Yuan
| Age | Endingbalance |
| Within1year(including1year) | 178,061,481 |
| 1-2years | 5,228,218 |
| 2-3years | 1,652,474 |
| Over3years | |
| Total | 184,942,173 |
AsatJune30,2020,theaccountsreceivablewithownershiprestrictionswereRMB31,557,404Yuan(December31,2019:54,663,422Yuan).PleaserefertoNote7.18fordetails.
7.2.2Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiod
Provisionforbaddebtsaccruedinthisperiod:
Unit:Yuan
Type
| Type | Beginningbalanceoftheyear | Changesinthisperiod | Endingbalance | ||
| Accrued | Withdrawnortransferredback | Cancelled | |||
| Accountsreceivableforwhichprovisionforbaddebtsisaccrued | 17,304,375 | 100,835 | 17,203,540 | ||
| Total | 17,304,375 | 100,835 | 17,203,540 | ||
7.2.3Accountsreceivableactuallycancelledafterverificationinthisperiod
Nil
7.2.4Accountsreceivablecollectedbytheborrowersoftop5unitsrankedbytheendingbalance
Unit:Yuan
| Unit | RelationshipwiththeCompany | Amount | Period | Percentageintotalaccountsreceivable | Endingbalanceofprovisionforbadanddoubtfuldebts |
| LianhuaSupermarketHoldingsCo.,Ltd. | Thirdparty | 12,068,877 | Within1year | 6.50% | 1,821,381 |
| NonggongshangSupermarket(Group)Co.,Ltd. | Thirdparty | 10,822,716 | Within1year | 5.90% | 2,588,499 |
| CIA.ZAFFARICOMERCIOE | Thirdparty | 4,962,855 | Within1year | 2.70% | 159,007 |
| TRI-VINIMPORTS,INC. | Thirdparty | 4,729,522 | Within1year | 2.60% | 47,175 |
| KingslandWinesandSpirits | Thirdparty | 4,529,090 | Within1year | 2.40% | 145,109 |
| Total | -- | 37,113,060 | -- | 20.1% | 4,761,171 |
7.2.5Accountsreceivableterminatingrecognitionduetotransferoffinancialassets
Nil
7.2.6Accountsreceivabletransferredandincludedinassetsandliabilities
Nil
7.3Receivablesfinancing
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Billsreceivable | 222,918,741 | 316,470,229 |
| Total | 222,918,741 | 316,470,229 |
7.3.1ThepledgedbillsreceivableoftheGroupattheendoftheyear
Nil
7.3.2Outstandingendorsedbillsthathavenotmaturedattheendoftheyear
Item
| Item | Amountderecognisedatyearend |
| Bankacceptancebills | 90,385,572 |
| Total | 90,385,572 |
AsatJune30,2020,billsendorsedbytheGrouptootherpartieswhicharenotyetdueattheendoftheperiodisRMB90,385,572Yuan(December31,2019:RMB265,759,455Yuan).Thenotesareusedforpaymenttosuppliersandconstructions.TheGroupbelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theGroupwouldundertakelimitedliabilityforthenotes.
7.4Advancepayment
7.4.1Advancepaymentlistedbyage
Unit:Yuan
| Age | Endingbalance | Beginningsum | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 10,200,527 | 100% | 67,441,713 | 99.6% |
| 1-2years | 265,824 | 0.4% | ||
| 2-3years | ||||
| Morethan3years | ||||
| Total | 10,200,527 | 100%-- | 67,707,537 | -- |
7.4.2Advancepaymentcollectedbytheprepaidpartiesoftop5unitsrankedbytheendingbalance
Unit:Yuan
| Categoryofclient | RelationshipwiththeGroup | Amount | Age | Reasonforunsettlement | Percentageinthetotaladvancepayment% |
| ChateauDeMirefleurs | Relatedparty | 6,429,542 | Within1year | Prepayments | 63.0% |
| ChateauDeLiversan | Relatedparty | 1,632,941 | Within1 | Prepayments | 16.0% |
year
| year | |||||
| StateGridShandongElectronicPowerYantaiCompany | Thirdparty | 1,229,571 | Within1year | Prepaidelectricityfees | 12.1% |
| BeijingShanshuiDecorationCompany | Thirdparty | 97,000 | Within1year | Prepaidmaintenancecost | 1.0% |
| SinopecSalesCo.,Ltd.ShandongYantaiPetroleumBranch | Thirdparty | 90,000 | Within1year | Prepaidfuelcost | 0.9% |
| Total | -- | 9,479,054 | -- | 93.0% |
7.5Otherreceivables
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 698,347 | 148,927 |
| Dividendsreceivable | ||
| Otherreceivables | 24,896,454 | 24,097,885 |
| Total | 25,594,801 | 24,246,812 |
7.5.1Interestreceivable
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Fixeddeposit | 698,347 | 148,927 |
| Entrustedloan | ||
| Bondinvestment | ||
| Total | 698,347 | 148,927 |
7.5.2Otherreceivables
7.5.2.1Otherreceivablesclassifiedbynature
Unit:Yuan
| Nature | Endingbookbalance | Beginningbookbalance |
| Depositandguarantymoneyreceivable | 8,546,270 | 9,812,027 |
| Imprestreceivable | 832,227 | 1,741,147 |
| Consumptiontaxandadded-valuetaxexportrebate | 7,878,064 | 8,937,164 |
| Other | 7,639,893 | 3,607,547 |
| Total | 24,896,454 | 24,097,885 |
7.5.2.2Disclosedbyage
Unit:Yuan
| Age | Endingbalance |
Age
| Age | Endingbalance |
| Within1year(including1year) | 16,742,154 |
| 1-2years | 383,863 |
| 2-3years | 721,352 |
| Morethan3years | 7,049,085 |
| Total | 24,896,454 |
7.5.2.3Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiod
TheprovisionforbaddebtsaccruedinthisperiodwasRMB0Yuan;andthatwithdrawnortransferredbackinthisperiodwasRMB0Yuan.
7.5.2.4Otherreceivablesactuallycancelledafterverificationinthisperiod
Nil
7.5.2.5Otherreceivablescollectedbytheborrowersoftop5unitsrankedbytheendingbalance
Unit:Yuan
| Unit | Nature | Endingbalance | Age | Percentageintotalendingbalanceofotheraccountsreceivable | Endingbalanceofprovisionforbaddebts |
| SerciciodeImpuestosInternos | Value-addedtaxrebate | 6,668,550 | Within1years | 26.8% | |
| YEDAFinanceBureau | Guarantymoney | 5,262,324 | Over3years | 21.1% | |
| YEDAConstructionIndustryAssociation | Constructionguarantymoney | 1,143,500 | Over3years | 4.6% | |
| YantaiGodHorsePackingCo.,Ltd. | Leasepaymentreceivable | 1,626,880 | Within1year | 6.5% | |
| ChangyuGroup | Leasepaymentpayable | 3,775,362 | Within1year | 15.2% | |
| Total | -- | 18,476,616 | -- | 74.2% |
7.5.2.6Accountsreceivableinvolvinggovernmentsubsidies
Nil
7.5.2.7OtherreceivablesthatareterminatedforrecognitionduetotransferoffinancialassetsNil
7.5.2.8Otherreceivablestransferredandthenincludedinassetsandliabilities
Nil
7.6Inventories
7.6.1Inventoryclassification
Unit:Yuan
Item
| Item | Endingbalance | Beginningbalance | ||||
| Bookbalance | Depreciationprovision | Bookvalue | Bookbalance | Depreciationprovision | Bookvalue | |
| Rawmaterials | 53,065,316 | 53,065,316 | 71,681,418 | 71,681,418 | ||
| Goodsinprocess | 2,282,289,166 | 2,282,289,166 | 2,102,781,536 | 2,102,781,536 | ||
| Commoditystocks | 609,349,091 | 8,570,313 | 600,778,778 | 718,127,090 | 20,179,637 | 697,947,453 |
| Total | 2,944,703,573 | 8,570,313 | 2,936,133,260 | 2,892,590,044 | 20,179,637 | 2,872,410,407 |
7.6.2Inventorydepreciationprovision
Unit:Yuan
| Item | Beginningbalance | Increaseinthisperiod | Decreaseinthisperiod | Endingbalance | ||
| Accrual | Other | Transferbackorwrite-off | Other | |||
| Rawmaterials | ||||||
| Goodsinprocess | ||||||
| Commoditystocks | 20,179,637 | 11,609,324 | 8,570,313 | |||
| Total | 20,179,637 | 11,609,324 | 8,570,313 | |||
7.7Othercurrentassets
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Prepaidcorporateincometax | 26,971,533 | 16,854,091 |
| Deductibleinputtax | 234,012,096 | 248,975,183 |
| Renttobeamortized | 1,934,092 | 1,595,664 |
| Total | 262,917,721 | 267,424,938 |
7.8Long-termequityinvestments
Unit:Yuan
| Investee | Beginningbalance(bookvalue) | Movementsduringtheperiod | Endingbalance(bookvalue) | Endingbalanceofprovisionforimpairment | |||||||
| Increaseincapital | Decreaseincapita | Lossesfrominvestmentsunderequity-method | Otheromprehensiveincomeadjustment | Otherequitychanging | Declarecashdividendorprofit | Accrualprovisionforimpairment | Others | ||||
| 1.Jointventures | |||||||||||
| SASL&MHoldings(“L&MHoldings”) | 43,981,130 | -1,170,685 | 42,810,445 | ||||||||
| Subtotal | 43,981,130 | -1,170,685 | 42,810,445 | ||||||||
OnFebruary22,2019,FrancsChampsParticipationsSAS(“FrancsChamps”),asubsidiaryofthe
Group,signedtheCooperationAgreementwithSCGarriduGaitoestablishL&MHoldings,ajointventure.FrancsChampscontributed100%oftheequityofitssubsidiary,SocieteCivileArgricoleDuChateauDeMirefleurs(“Mirefleurs”),withafairvalueofRMB45,102,058Yuan,accountingfor55%ofthesharesofL&MHoldings.AspertheAgreementandtheArticlesofAssociation,L&MHoldingsisjointlycontrolledbyshareholdersofbothparties.
7.9Investmentrealestate
7.9.1Investmentrealestatebycostmeasurementmethod
Unit:Yuan
Item
| Item | Housesandbuildings | Landuseright | Constructioninprogress | Total |
| ⅠOriginalbookvalue | ||||
| 1.Beginningbalance | 70,954,045 | 70,954,045 | ||
| 2.Increaseinthisperiod | ||||
| 2.1Outsourcing | ||||
| 2.2Transferinfrominventories\fixedassets\constructioninprogress | ||||
| 2.3Businessmergerincrease | ||||
| 3.Decreaseinthisperiod | ||||
| 3.1Disposal | ||||
| 3.2Othertransferout | ||||
| 4.Endingbalance | 70,954,045 | 70,954,045 | ||
| ⅡAccumulateddepreciation&accumulatedamortization | ||||
| 1.Beginningbalance | 41,239,459 | 41,239,459 | ||
| 2.Increaseinthisperiod | 1,369,899 | 1,369,899 | ||
| 2.1Accrualoramortization | 1,369,899 | 1,369,899 | ||
| 3.Decreaseinthisperiod | ||||
| 3.1Disposal | ||||
| 3.2Othertransferout | ||||
| 4.Endingbalance | 42,609,358 | 42,609,358 | ||
| ⅢImpairmentprovision | ||||
| 1.Beginningbalance | ||||
| 2.Increaseinthisperiod | ||||
| 2.1Accrual | ||||
| 3.Decreaseinthisperiod | ||||
| 3.1Disposal | ||||
| 3.2Othertransferout | ||||
| 4.Endingbalance | ||||
| ⅣBookvalue | ||||
| 1.Endingbookvalue | 28,344,687 | 28,344,687 | ||
| 2.Beginningbookvalue | 29,714,586 | 29,714,586 |
7.10Fixedassets
Unit:Yuan
Item
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 5,818,499,845 | 5,894,068,898 |
| Disposaloffixedassets | ||
| Total | 5,818,499,845 | 5,894,068,898 |
7.10.1Particularsoffixedassets
Unit:Yuan
| Item | Housesandbuildings | Machineryequipment | Conveyance | Total |
| ⅠOriginalbookvalue: | ||||
| 1.Beginningbalance | 5,093,628,796 | 2,730,306,041 | 26,670,156 | 7,850,604,993 |
| 2.Increaseinthisperiod | 26,435,121 | 32,745,994 | 1,109,021 | 60,290,136 |
| 2.1Acquisition | 16,217,779 | 30,825,672 | 1,109,021 | 48,152,472 |
| 2.2Transferinfromconstructioninprogress | 10,217,342 | 1,920,322 | 12,137,664 | |
| 2.3Businessmergerincrease | ||||
| 3.Decreaseinthisperiod | 1,037,337 | 1,037,337 | ||
| 3.1Disposalorretirement | 1,037,337 | 1,037,337 | ||
| 4.Endingbalance | 5,120,063,917 | 2,762,014,698 | 27,779,177 | 7,909,857,792 |
| ⅡAccumulateddepreciation | ||||
| 1.Beginningbalance | 755,115,344 | 1,163,797,943 | 20,144,781 | 1,939,058,068 |
| 2.Increaseinthisperiod | 55,228,292 | 78,723,926 | 1,136,974 | 135,089,192 |
| 2.1Accrual | 55,228,292 | 78,723,926 | 1,136,974 | 135,089,192 |
| 3.Decreaseinthisperiod | 267,340 | 267,340 | ||
| 3.1Disposalorretirement | 267,340 | 267,340 | ||
| 4.Endingbalance | 810,343,636 | 1,242,254,529 | 21,281,755 | 2,073,879,920 |
| ⅢImpairmentprovision | ||||
| 1.Beginningbalance | 17,478,027 | 17,478,027 | ||
| 2.Increaseinthisperiod | ||||
| 2.1Accrual | ||||
| 3.Decreaseinthisperiod | ||||
| 3.1Disposalorretirement | ||||
| 4.Endingbalance | 17,478,027 | 17,478,027 | ||
| ⅣBookvalue | ||||
| 1.Endingbookvalue | 4,309,720,281 | 1,502,282,142 | 6,497,422 | 5,818,499,845 |
| 2.Beginningbookvalue | 4,338,513,452 | 1,549,030,071 | 6,525,375 | 5,894,068,898 |
AsatJune30,2020,thenetvalueofthefixedassetswithownershiprestrictionswasRMB338,237,400Yuan(December31,2019:RMB344,670,852Yuan).PleaserefertoNote7.51fordetails.
7.10.2Particularsoftemporarilyidlefixedassets
Unit:Yuan
Item
| Item | Originalbookvalue | Accumulateddepreciation | Depreciationreserves | Bookvalue | Remarks |
| Buildings | 47,821,026 | 15,511,660 | 32,309,366 | ||
| Machineryequipment | 73,592,531 | 54,095,030 | 17,478,027 | 2,019,474 | |
| Otherequipment | 3,344,518 | 3,176,756 | 167,762 | ||
| Total | 124,758,075 | 72,783,446 | 17,478,027 | 34,496,602 |
7.10.3Particularsoffixedassetsunderfinanceleases
Nil
7.10.4Fixedassetsunderoperatinglease
Unit:Yuan
| Item | Endingbookvalue |
| Machineryequipment | 64,944 |
7.10.5Particularsoffixedassetswithoutpropertycertificates
Unit:Yuan
| Item | Bookvalue | Reasonfornotreceivingthepropertycertificate |
| IndustrialProductionCenteroftheR&DCompany | 1,744,312,701 | Undertransaction |
| DormitoryBuilding,MainBuildingandReceptionBuildingofChang’anChateau | 283,676,202 | Undertransaction |
| EuropeanTown,MainBuildingandServiceBuildingofBeijingChateau | 178,930,935 | Undertransaction |
| MainBuildingofYantaiChateauChangyuTinlot | 78,378,833 | Undertransaction |
| FermentationWorkshopandWineStorageWorkshopofXinjiangTianzhu | 16,802,302 | Undertransaction |
| OfficeBuildingandPackagingWorkshopofIcewineValley | 8,736,650 | Undertransaction |
| Wine-makingWorkshopofChangyu(Jingyang) | 3,707,219 | Undertransaction |
| OfficeBuilding,LaboratoryBuildingandWorkshopofFermentationCenter | 3,400,025 | Undertransaction |
| FinishedGoodsWarehouseandWorkshopofKylinPackaging | 2,260,833 | Undertransaction |
| OfficeofSalesCompany | 2,232,626 | Undertransaction |
| Total | 2,322,438,325 | Undertransaction |
7.11Constructioninprogress
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
Constructioninprogress
| Constructioninprogress | 647,036,593 | 567,478,833 |
| Engineeringmaterials | ||
| Total | 647,036,593 | 567,478,833 |
7.11.1Particularsofconstructioninprogress
Unit:Yuan
| Item | Endingbalance | Beginningbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Research,Development&ManufactureCenter(“ChangyuWineCityComplex”) | 571,245,868 | 571,245,868 | 485,017,326 | 485,017,326 | ||
| ConstructionProjectofNingxiaChateau | 46,448,561 | 46,448,561 | 46,448,561 | 46,448,561 | ||
| ConstructionProjectofChang’anChateau | 5,002,367 | 5,002,367 | 4,052,839 | 4,052,839 | ||
| ConstructionProjectofShiheziChateau | 1,326,390 | 1,326,390 | 877,348 | 877,348 | ||
| ConstructionProjectofSalesCompany | 7,925,062 | 7,925,062 | 6,313,962 | 6,313,962 | ||
| ConstructionProjectsofOtherCompanies | 15,088,345 | 15,088,345 | 24,768,797 | 24,768,797 | ||
| Total | 647,036,593 | 647,036,593 | 567,478,833 | 567,478,833 | ||
7.11.2Changesofmajorconstructioninprogressinthisperiod
Item
| Item | Budget | Beginningbalance | Increaseinthisperiod | Transferredtofixedassetsinthisperiod | Otherdecreaseinthisperiod | Endingbalance | Proportionofaccumulativeprojectinputinbudget | Accumulativecapitalizedamountofinterest | Including:capitalizedamountofinterestinthisperiod | Capitalizationratioofinterestinthisperiod | Capitalsource |
| ChangyuWineCityComplex | 4,505,780,000 | 485,017,326 | 92,778,083 | 6,549,541 | 571,245,868 | 79.70% | 15,824,401 | 411,299 | 1.20%and4.3% | Loansformfinancialinstitutionsandself-raisedfunds | |
| ConstructionProjectofNingxiaChateau | 414,150,000 | 46,448,561 | 46,448,561 | 102.20% | Self-raisedfunds | ||||||
| ConstructionProjectofChang’anChateau | 620,740,000 | 4,052,839 | 6,522,266 | 5,572,738 | 5,002,367 | 111.50% | Self-raisedfunds | ||||
| ConstructionProjectofShiheziChateau | 780,000,000 | 877,348 | 449,042 | 1,326,390 | 96.50% | Self-raisedfunds | |||||
| ConstructionProjectofSalesCompany | 161,350,000 | 6,313,962 | 1,611,100 | 7,925,062 | 101.30% | Self-raisedfunds | |||||
| Total | 6,482,020,000 | 542,710,036 | 101,360,491 | 12,122,279 | 631,948,248 | -- | 15,824,401 | 411,299 | -- |
AsatJune30,2020,therewasnoindicationforimpairmentofconstructioninprogressoftheGroup,sonoprovisionforimpairmentwasmade.
7.12Productivebiologicalassets
7.12.1Productivebiologicalassetsbycostmeasurementmethod
Unit:Yuan
Item
| Item | Plantation | Total | |
| Immature | Mature | ||
| ⅠOriginalbookvalue | |||
| 1.Beginningbalance | 12,828,822 | 240,517,972 | 253,346,794 |
| 2.Increaseinthisperiod | -5,577,636 | 6,173,226 | 595,590 |
| 2.1Outsourcing | |||
| 2.2Selfcultivation | 595,590 | 595,590 | |
| Theimmatureturntothemature | -6,173,226 | 6,173,226 | |
| 3.Decreaseinthisperiod | |||
| 3.1Disposal | |||
| 3.2Other | |||
| 4.Endingbalance | 7,251,186 | 246,691,198 | 253,942,384 |
| ⅡAccumulateddepreciation | |||
| 1.Beginningbalance | 50,921,508 | 50,921,508 | |
| 2.Increaseinthisperiod | 6,782,285 | 6,782,285 | |
| 2.1Accrual | 6,782,285 | 6,782,285 | |
| 3.Decreaseinthisperiod | |||
| 3.1Disposal | |||
| 3.2Other | |||
| 4.Endingbalance | 57,703,793 | 57,703,793 | |
| ⅢImpairmentprovision | |||
| 1.Beginningbalance | |||
| 2.Increaseinthisperiod | |||
| 2.1Accrual | |||
| 3.Decreaseinthisperiod | |||
| 3.1Disposal | |||
| 3.2Other | |||
| 4.Endingbalance | |||
| ⅣBookvalue | |||
| 1.Endingbookvalue | 7,251,186 | 188,987,405 | 196,238,591 |
| 2.Beginningbookvalue | 12,828,822 | 189,596,464 | 202,425,286 |
AsatJune30,2020,noownershipofthebiologicalassetswasrestricted.AsatJune30,2020,therewasnoindicationforimpairmentofbiologicalassetsoftheGroup,sonoprovisionwasmade.
7.13Intangibleassets
7.13.1Particularsofintangibleassets
Unit:Yuan
Item
| Item | Landuseright | Softwareuseright | Trademark | Total |
| ⅠOriginalbookvalue | ||||
| 1.Beginningbalance | 531,755,702 | 88,258,481 | 170,773,266 | 790,787,449 |
| 2.Increaseinthisperiod | 337,512 | 82,249 | 419,761 | |
| 2.1Acquisition | 337,512 | 82,249 | 419,761 | |
| 2.2InternalR&D | ||||
| 2.3Businessmergerincrease | ||||
| 3.Decreaseinthisperiod | ||||
| 3.1Disposal | ||||
| 4.Endingbalance | 531,755,702 | 88,595,993 | 170,855,515 | 791,207,210 |
| ⅡAccumulatedamortization | ||||
| 1.Beginningbalance | 89,333,506 | 35,165,790 | 14,341,798 | 138,841,094 |
| 2.Increaseinthisperiod | 5,353,487 | 5,716,724 | 75,325 | 11,145,536 |
| 2.1Accrual | 5,353,487 | 5,716,724 | 75,325 | 11,145,536 |
| 3.Decreaseinthisperiod | ||||
| 3.1Disposal | ||||
| 4.Endingbalance | 94,686,993 | 40,882,514 | 14,417,123 | 149,986,630 |
| ⅢImpairmentprovision | ||||
| 1.Beginningbalance | ||||
| 2.Increaseinthisperiod | ||||
| 2.1Accrual | ||||
| 3.Decreaseinthisperiod | ||||
| 3.1Disposal | ||||
| 4.Endingbalance | ||||
| ⅣBookvalue | ||||
| 1.Endingbookvalue | 437,068,709 | 47,713,479 | 156,438,392 | 641,220,580 |
| 2.Beginningbookvalue | 442,422,196 | 53,092,691 | 156,431,468 | 651,946,355 |
AsatJune30,2020,thenetvalueoftheintangibleassetswithownershiprestrictionswasRMB209,707,945Yuan(December31,2019:RMB212,495,435).PleaserefertoNote7.51fordetails.
7.13.2Particularsoflanduserightofthatnotreceivingthepropertycertificate
Nil
7.14Goodwill
7.14.1Originalbookvalueofgoodwill
Unit:Yuan
Nameoftheinvestedunitormatterforming
goodwill
| Nameoftheinvestedunitormatterforminggoodwill | Beginningbalance | Increaseinthisperiod | Decreaseinthisperiod | Endingbalance | ||
| Formedbybusinessmerger | Other | Disposal | Other | |||
| EtablissementsRoulletFransac(“RoulletFransac”) | 13,112,525 | 13,112,525 | ||||
| DicotPartners,S.L(“AtrioGroup”) | 92,391,901 | 92,391,901 | ||||
| IndomitaWineCompanyChile,SpA | 6,870,115 | 6,870,115 | ||||
| KilikanoonEstate,Australia | 37,063,130 | 37,063,130 | ||||
| Total | 149,437,671 | 149,437,671 | ||||
7.14.2Provisionforimpairmentofgoodwill
Unit:Yuan
| Nameoftheinvestedunitormatterforminggoodwill | Beginningbalance | Increaseinthisperiod | Decreaseinthisperiod | Endingbalance | ||
| Formedbybusinessmerger | Other | Disposal | Other | |||
| EtablissementsRoulletFransac(“RoulletFransac”) | ||||||
| DicotPartners,S.L(“AtrioGroup”) | ||||||
| IndomitaWineCompanyChile,SpA | ||||||
| KilikanoonEstate,Australia | 7,578,478 | 7,578,478 | ||||
| Total | 7,578,478 | 7,578,478 | ||||
7.15Long-termunamortizedexpenses
Unit:Yuan
| Item | Beginningbalance | Increaseinthisperiod | Amortizationinthisperiod | Otherdecrease | Endingbalance |
| Landleasefees | 52,129,414 | 699,680 | 51,429,734 | ||
| Landacquisitionfees | 41,460,260 | 575,734 | 40,884,526 | ||
| Afforestationfees | 145,952,500 | 787,431 | 4,610,618 | 142,129,313 | |
| Renovationcosts | 32,988,886 | 1,443,983 | 31,544,903 | ||
| Other | 5,064,348 | 283,327 | 4,781,021 | ||
| Total | 277,595,408 | 787,431 | 7,613,342 | 270,769,497 |
7.16Deferredincometaxassets/liabilities
7.16.1Un-offsetdeferredincometaxassets
Unit:Yuan
Item
| Item | EndingBalance | BeginningBalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Assetimpairmentprovision | 43,251,879 | 10,812,970 | 54,771,519 | 13,692,880 |
| Unrealizedprofitsfrominter-companytransactions | 333,361,876 | 83,340,470 | 479,898,175 | 119,974,545 |
| Deductibleloss | 286,136,558 | 73,596,023 | 247,147,752 | 63,459,305 |
| Unpaidbonus | 111,494,802 | 27,873,700 | 184,674,946 | 46,168,736 |
| Dismissionwelfare | 21,088,263 | 5,272,066 | 24,833,512 | 6,208,378 |
| Deferredincome | 61,772,908 | 13,428,664 | 70,643,437 | 15,422,659 |
| Total | 857,106,286 | 214,323,893 | 1,061,969,341 | 264,926,503 |
7.16.2Un-offsetdeferredincometaxliabilities
Unit:Yuan
| Item | EndingBalance | BeginningBalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Assetsappraisalappreciationinbusinessmergerundernon-commoncontrol | 50,453,763 | 14,303,137 | 51,829,561 | 14,691,424 |
| Total | 50,453,763 | 14,303,137 | 51,829,561 | 14,691,424 |
7.16.3Detailsofunconfirmeddeferredincometaxassets
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Deductabletemporarydifference | ||
| Deductibleloss | 125,159,701 | 132,081,819 |
| Total | 125,159,701 | 132,081,819 |
7.16.4Deductiblelossesofunconfirmeddeferredincometaxassetswillexpirein:
Unit:Yuan
| Year | Endingsum | Beginningsum | Remark |
| 2020 | 5,718,454 | 5,718,454 | |
| 2021 | 36,741,465 | 36,741,465 | |
| 2022 | 26,609,674 | 26,609,674 | |
| 2023 | 6,987,182 | 31,350,376 | |
| 2024 | 7,726,790 | 31,661,850 | |
| 2025 | 41,376,136 | ||
| Total | 125,159,701 | 132,081,819 | -- |
7.17Othernon-currentassets
Unit:Yuan
Item
| Item | Endingbalance | Beginningbalance |
| Royalty | 184,158,436 | 193,674,320 |
| Total | 184,158,436 | 193,674,320 |
7.18Short-termloans
7.18.1Classificationofshort-termloans
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Pledgeloan | ||
| Mortgageloan | 59,875,404 | 82,568,222 |
| Guaranteedloan | 11,476,342 | 10,677,905 |
| Fiduciaryloan | 665,831,955 | 661,067,617 |
| Total | 737,183,701 | 754,313,744 |
AsatJune30,2020,mortgagedloanswereHaciendayVi?edosMarquesdelAtrio,S.L.U("Atrio")factoringofaccountsreceivablefrombanksincludingBancodeSabadell,S.A.ofEUR3,964,000(equivalentofRMB31,557,404Yuan)(December31,2019:RMB54,663,422Yuan).MortgagedloanswereIndomitaWinemortgagedUSD4,000,000(equivalentofRMB28,318,000Yuan)ofitsfixedassetstoBBVA(December31,2019:RMB27,904,800Yuan).AustraliaKilikanoonEstatehasguaranteedloansofAUD2,358,621(equivalentofRMB11,476,342Yuan)(December31,2019:
RMB10,677,905Yuan).
7.19Accountspayable
7.19.1Listofaccountspayable
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Accountspayableformaterials,etc. | 379,727,980 | 570,252,612 |
| Total | 379,727,980 | 570,252,612 |
7.19.2Explanationofsignificantaccountspayableagedmorethanoneyear
AsatJune30,2020,therewerenosignificantaccountspayableagedmorethanoneyear.
7.20Contractliabilities
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Advancesfromcustomers | 100,523,260 | 106,734,070 |
| Total | 100,523,260 | 106,734,070 |
7.21Employeeremunerationspayable
7.21.1Listofemployeeremunerationspayable
Unit:Yuan
Item
| Item | Beginningbalance | Increaseinthisperiod | Decreaseinthisperiod | Endingbalance |
| 1.Short-termremuneration | 208,889,457 | 119,601,171 | 210,105,009 | 118,385,619 |
| 2.Post-employmentwelfare–definedcontributionplan | 736,147 | 17,329,399 | 17,676,500 | 389,046 |
| 3.Dismissionwelfare | 24,833,512 | 441,038 | 4,186,287 | 21,088,263 |
| 4.Otherwelfareduewithinoneyear | ||||
| Total | 234,459,116 | 137,371,608 | 231,967,796 | 139,862,928 |
7.21.2Listofshort-termremunerations
Unit:Yuan
| Item | Beginningbalance | Increaseinthisperiod | Decreaseinthisperiod | Endingbalance |
| 1.Salaries,bonuses,allowancesandsubsidies | 212,017,795 | 104,134,847 | 192,207,416 | 123,945,226 |
| 2.Staffwelfare | 2,001,589 | 2,260,811 | 4,169,008 | 93,392 |
| 3.Socialinsurancecharges | 567,446 | 5,617,673 | 6,121,959 | 63,160 |
| Including:Medicalinsurance | 567,446 | 4,982,116 | 5,486,402 | 63,160 |
| Injuryinsurance | 518,934 | 518,934 | ||
| Maternityinsurance | 116,623 | 116,623 | ||
| 4.Housingfund | 14,195 | 5,934,629 | 5,927,978 | 20,846 |
| 5.Unionfeeandstaffeducationfee | 1,934,209 | 1,653,211 | 1,678,648 | 1,908,772 |
| 6.Short-termcompensatedabsences | ||||
| 7.Short-termprofit-sharingplan | ||||
| Minus:Thosedividedintonon-currentliabilities | 7,645,777 | 7,645,777 | ||
| Total | 208,889,457 | 119,601,171 | 210,105,009 | 118,385,619 |
7.21.3Listofdefinedcontributionplan
Unit:Yuan
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicendowmentinsurance | 736,137 | 16,573,752 | 16,920,853 | 389,036 |
| 2.Unemploymentinsurance | 10 | 755,647 | 755,647 | 10 |
| 3.Enterpriseannuitypayment | ||||
| Total | 736,147 | 17,329,399 | 17,676,500 | 389,046 |
7.21.4Dismissionwelfare
Unit:Yuan
Item
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Compensationforserveroflaborrelation | 441,038 | 441,038 | ||
| 2.Compensationforearlyretirement | 24,833,512 | 3,745,249 | 21,088,263 | |
| Total | 24,833,512 | 441,038 | 4,186,287 | 21,088,263 |
7.22Taxesandduespayable
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Valueaddedtax | 24,637,073 | 88,590,035 |
| Consumptiontax | 11,731,929 | 48,497,550 |
| Corporateincometax | 104,903,260 | 216,958,309 |
| Individualincometax | 391,707 | 840,997 |
| Urbanmaintenanceandconstructiontax | 2,194,198 | 6,731,772 |
| Educationsurcharges | 1,589,510 | 4,858,904 |
| Urbanlandusetax | 2,343,608 | 2,216,390 |
| Other | 6,780,990 | 6,476,014 |
| Total | 154,572,275 | 375,169,971 |
7.23Otherpayables
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Interestpayable | 2,167,287 | 758,047 |
| Dividendspayable | 480,819,925 | 1,366,559 |
| Otherpayables | 310,046,401 | 448,407,879 |
| Total | 793,033,613 | 450,532,485 |
7.23.1Interestpayable
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Interestoflong-termloanswithinterestpaidbyinstallmentandprincipalpaidonmaturity | ||
| Interestofcorporatebonds | ||
| Interestpayableofshort-termloans | 2,167,287 | 758,047 |
| Interestofpreferredshares\perpetualbondsdividedintofinancialliabilities | ||
| Other | ||
| Total | 2,167,287 | 758,047 |
7.23.2Dividendspayable
Unit:Yuan
Item
| Item | Endingbalance | Beginningbalance |
| Ordinarystockdividends | 479,824,800 | |
| Preferredstockdividends/sustainabledebtdividendsdividedintoequityinstruments | ||
| Other | 995,125 | 1,366,559 |
| Total | 480,819,925 | 1,366,559 |
7.23.3Otherpayables
7.23.3.1Otherpayableslistedbynature
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Dealer’sdepositpayable | 167,342,614 | 164,649,995 |
| Equipmentpurchaseandconstructioncostspayable | 56,776,519 | 72,004,009 |
| Transportationchargespayable | 14,043,603 | 31,842,443 |
| Advertisementexpensespayable | 1,107,877 | 90,741,404 |
| Employeecashdeposit | 619,282 | 1,866,765 |
| Supplier’sdepositpayable | 15,231,550 | 13,990,900 |
| Contractingfeespayable | 11,788,691 | 16,997,685 |
| Other | 43,136,265 | 56,314,678 |
| Total | 310,046,401 | 448,407,879 |
7.24Non-currentliabilitiesduewithinoneyear
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Long-termloansduewithinoneyear | 64,996,064 | 116,826,221 |
| Bondspayableduewithinoneyear | ||
| Long-termaccountspayableduewithinoneyear | 34,000,000 | 34,000,000 |
| Leaseliabilitiesduewithinoneyear | ||
| Total | 98,996,064 | 150,826,221 |
7.25Long-termloans
7.25.1Classificationoflong-termloans
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Mortgageloan | 2,475,871 | 3,875,992 |
| Guaranteedloan | 102,138,400 | 105,093,000 |
| Fiduciaryloan | 178,995,129 | 136,749,730 |
| Less:Long-termloansduewithinoneyear | 64,996,064 | 116,826,221 |
| Total | 218,613,336 | 128,892,501 |
AsatJune30,2020,creditloanswereEUR22,484,000borrowedbyAtriofromBankia,BancoSantander,BBVAandCajaRuraldeNavarretc.(equivalentofRMB178,995,124Yuan)(December31,2019:RMB136,749,730Yuan).Mortgagedloans(RMB)werelong-termborrowingsofRMB43,750,000YuanoftheR&DCentre,asubsidiaryoftheCompany(December31,2019:
RMB56,250,000Yuan).AustraliaKilikanoonEstatehasborrowedAUD12,000,000(equivalentofRMB58,388,400Yuan)(December31,2019:RMB48,843,000Yuan)fromANZBankanditsguaranteedbytheCompany.MortgagedloanswereborrowingsofEUR311,000(equivalentofRMB2,475,871Yuan)formPopularEspa?ol,pledgedwithitslandwhichvaluedEUR2,929,628(equivalentofRMB23,322,769Yuan)(December31,2019:RMB3,875,992Yuan).
7.26Long-termaccountspayable
Item
| Item | Endingbalance | Beginningbalance |
| Long-termaccountspayable | 167,000,000 | 191,000,000 |
| Specialaccountspayable | ||
| Total | 167,000,000 | 191,000,000 |
7.26.1Long-termaccountspayablelistedbynature
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| AgriculturalDevelopmentFundofChina("CADF") | 201,000,000 | 225,000,000 |
| Less:Long-termpayablesduewithinoneyear | 34,000,000 | 34,000,000 |
| Balanceoflong-termpayables | 167,000,000 | 191,000,000 |
In2016,AgriculturalDevelopmentFundinvestedRMB305,000,000YuanintheResearch,Development&ManufactureCompany,accountingfor37.9%oftheregisteredcapital.Accordingtotheinvestmentagreement,itisagreedthatAgriculturalDevelopmentFundwilltakebacktheinvestmentfundintenyearsandobtainfixedincomeaccordingtoyear,whichis1.2%oftheremainingprincipal.Exceptfortheabovefixedincome,theAgriculturalDevelopmentFundshallnotenjoyotherprofitsoftheResearch,Development&ManufactureCompanyorbearthelossesoftheResearch,Development&ManufactureCompany.Accordingly,theinvestmentoftheAgriculturalDevelopmentFundintheResearch,Development&ManufactureCompanyisequityinvestmentnominally,whichisdebtinvestment(financediscountinterestloan)indeed.TheGroupincludedtheinvestmentoftheAgriculturalDevelopmentFundinlong-termaccountspayablemeasuredbyamortizedcost.FromJanuarytoJune2020,theGroupgavebacktheprincipalofRMB24,000,000Yuan.RefertoNote7.51fordetailsofmortgagedandpledgedassets.
7.27Deferredincome
Unit:Yuan
| Item | Beginningbalance | Increaseinthisperiod | Decreaseinthisperiod | Endingbalance | Formingreason |
| Governmentalsubsidy | 70,701,288 | 445,536 | 9,373,916 | 61,772,908 | |
| Total | 70,701,288 | 445,536 | 9,373,916 | 61,772,908 | -- |
Projectsrelatedtogovernmentalsubsidy
Unit:Yuan
Itemofliabilities
| Itemofliabilities | Beginningbalance | Amountofsubsidynewlyincreasedinthisperiod | Amountincludedinnon-operatingrevenueinthisperiod | Amountincludedinotherincomeinthisperiod | Amountoffsetthecostexpenses | Otherchanges | Endingbalance | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 28,700,000 | 2,050,000 | 26,650,000 | Relatedtoassets | ||||
| Xinjiangindustrialrevitalisationandtechnologicaltransformationproject | 14,220,000 | 711,000 | 13,509,000 | Relatedtoassets | ||||
| FixedassetinvestmentrewardofShiheziChateauproject | 4,716,600 | 1,140,000 | 3,576,600 | Relatedtoassets | ||||
| ShandongPeninsulaBlueEconomicAreaconstructionfunds | 4,000,000 | 1,000,000 | 3,000,000 | Relatedtoassets | ||||
| Specialgovernmentgrantforinfrastructure | 3,180,000 | 530,000 | 2,650,000 | Relatedtoassets | ||||
| Rawwinefermentationproject | 1,869,600 | 717,450 | 1,152,150 | Relatedtoassets | ||||
| Winefermentationcapacityconstruction(Huanren)project | 2,800,000 | 200,000 | 2,600,000 | Relatedtoassets | ||||
| Engineeringtechnologytransformationofinformationsystemproject | 2,320,000 | 290,000 | 2,030,000 | Relatedtoassets | ||||
| Liquorelectronictrackingproject | 1,858,203 | 333,526 | 1,524,677 | Relatedtoassets | ||||
| Infrastructureconstructionproject | 350,000 | 445,536 | 64,378 | 731,158 | Relatedtoassets | |||
| Specialfundforefficientwater-savingirrigationproject | 1,877,000 | 481,000 | 1,396,000 | Relatedtoassets | ||||
| Subsidyforeconomicandenergy-savingtechnologicaltransformationprojects | 898,100 | 64,150 | 833,950 | Relatedtoassets | ||||
| Wineindustrydevelopmentproject | 372,000 | 93,000 | 279,000 | Relatedtoassets | ||||
| SubsidyformechanicdevelopmentofPenglaiDaliuhangBase | 265,397 | 265,397 | Relatedtoassets | |||||
| Coalsubsidy | 201,500 | 13,000 | 188,500 | Relatedtoassets | ||||
| Cross-bordere-commerceproject | 839,958 | 124,611 | 715,347 | Relatedtoincome | ||||
| Travellingdevelopmentfundsubsidyproject | 560,000 | 560,000 | Relatedtoincome | |||||
| Waterpollutioncontrolprojectfund | 92,930 | 56,801 | 36,129 | Relatedtoincome | ||||
| Subsidyforboilerreconstructionanddemolition | 80,000 | 5,000 | 75,000 | Relatedtoincome |
Specialfundsforthedevelopmentofenterprises
| Specialfundsforthedevelopmentofenterprises | 1,500,000 | 1,500,000 | Relatedtoincome | ||||
| Total | 70,701,288 | 445,536 | 9,373,916 | 61,772,908 |
7.28Othernon-currentliabilities
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Employeeremunerationspayable | 7,645,777 | 7,645,777 |
| Total | 7,645,777 | 7,645,777 |
AsatJune30,2020,theemployeeremunerationspayablereferredtothejobsecuritydepositdeductedfromtheyear-endbonusoftheemployeeshigherthansalesmanageroftheCompanyinproportion,whichwillbepaidfrom2021to2023aspredicted.
7.29Sharecapital
Unit:Yuan
| Beginningbalance | Increaseordecrease(+,-)inthisperiod | Endingbalance | |||||
| Newlyissuedshares | Allocatedshares | Sharetransferredfromaccumulationfund | Other | Subtotal | |||
| Totalshares | 685,464,000 | 685,464,000 | |||||
7.30Capitalreserves
Unit:Yuan
| Item | Beginningbalance | Increaseinthisperiod | Decreaseinthisperiod | Endingbalance |
| Capitalpremium(Sharecapitalpremium) | 559,133,834 | 559,133,834 | ||
| Othercapitalreserves | 5,916,588 | 5,916,588 | ||
| Total | 565,050,422 | 565,050,422 |
7.31Othercomprehensiveincome
Unit:Yuan
| Item | Beginningbalance | Amountincurredinthisperiod | Endingbalance | |||||
| Amountincurredbeforeincometaxinthisperiod | Minus:amountincludedinothercomprehensiveincomebeforeandtransferredtoprofitorlossinthisperiod | Minus:amountincludedinothercomprehensiveincomebeforeandtransferredtoretainedearningsinthisperiod | Minus:incometaxexpenses | Attributabletoparentcompanyaftertax | Attributabletominorityshareholdersaftertax | |||
| 1.Othercomprehensiveincome | ||||||||
Item
| Item | Beginningbalance | Amountincurredinthisperiod | Endingbalance | |||||
| Amountincurredbeforeincometaxinthisperiod | Minus:amountincludedinothercomprehensiveincomebeforeandtransferredtoprofitorlossinthisperiod | Minus:amountincludedinothercomprehensiveincomebeforeandtransferredtoretainedearningsinthisperiod | Minus:incometaxexpenses | Attributabletoparentcompanyaftertax | Attributabletominorityshareholdersaftertax | |||
| nottobereclassifiedintoprofitandlosslater | ||||||||
| Including:Changesafterremeasuringandresettingthebenefitplans | ||||||||
| Othercomprehensiveincomenottobereclassifiedintoprofitandlossunderequitylaw | ||||||||
| Changesinthefairvalueofotherinvestmentsinequityinstruments | ||||||||
| Changesinthefairvalueoftheenterprise'sowncreditrisk | ||||||||
| 2.Othercomprehensiveincometobereclassifiedintoprofitandlosslater | -4,235,583 | -5,765,822 | -5,006,653 | -759,169 | -9,242,236 | |||
| Including:Othercomprehensiveincometobereclassifiedintoprofitandlossunderequitylaw | ||||||||
| Changesinthefairvalueofotherdebtinvestments | ||||||||
| Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | ||||||||
| Provisionforcreditimpairmentofothercreditinvestments | ||||||||
| Provisionforcash-flowhedge | ||||||||
| DifferenceintranslationofForeignCurrencyFinancialStatement | -4,235,583 | -5,765,822 | -5,006,653 | -759,169 | -9,242,236 | |||
| Totalothercomprehensiveincome | -4,235,583 | -5,765,822 | -5,006,653 | -759,169 | -9,242,236 | |||
7.32Surplusreserves
Unit:Yuan
Item
| Item | Beginningbalance | Increaseinthisperiod | Decreaseinthisperiod | Endingbalance |
| Legalsurplusreserves | 342,732,000 | 342,732,000 | ||
| Freesurplusreserves | ||||
| Reservefund | ||||
| Enterpriseexpansionfund | ||||
| Other | ||||
| Total | 342,732,000 | 342,732,000 |
7.33Undistributedprofit
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Undistributedprofitattheendofpriorperiodbeforeadjustment | 8,719,899,359 | 8,008,982,547 |
| TotalUndistributedprofitatthebeginningoftheperiodbeforeadjustment(increaselistedwith+,anddecreaselistedwith-) | -7,540,537 | |
| Undistributedprofitatthebeginningoftheperiodafteradjustment | 8,719,899,359 | 8,001,442,010 |
| Plus:Netprofitforowneroftheparentcompany | 307,035,572 | 1,129,735,749 |
| Minus:Drawnlegalsurplus | ||
| Drawnfreesurplus | ||
| Drawncommonriskprovision | ||
| Commondividendpayable | 479,824,800 | 411,278,400 |
| Commondividendtransferredtosharecapital | ||
| Undistributedprofitattheendofperiod | 8,547,110,131 | 8,719,899,359 |
7.34Operatingincomeandoperatingcost
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusiness | 1,390,770,376 | 569,872,959 | 2,541,459,605 | 927,958,197 |
| Otherbusiness | 10,836,416 | 4,777,718 | 16,815,180 | 8,294,028 |
| Total | 1,401,606,792 | 574,650,677 | 2,558,274,785 | 936,252,225 |
7.35Taxesandsurcharges
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Consumptiontax | 49,392,779 | 68,699,658 |
Urbanmaintenanceandconstructiontax
| Urbanmaintenanceandconstructiontax | 9,360,101 | 18,763,626 |
| Educationsurcharges | 6,787,564 | 13,670,717 |
| Buildingtax | 13,946,836 | 14,184,915 |
| Landusetax | 5,823,990 | 5,478,045 |
| Stampduty | 2,276,001 | 1,504,356 |
| Other | 516,222 | 1,249,531 |
| Total | 88,103,493 | 123,550,848 |
7.36Sellingexpenses
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Marketingexpenses | 54,684,262 | 268,185,487 |
| Employeeremunerations | 95,885,996 | 130,725,779 |
| Transportationexpenses | 53,735,626 | |
| Trademarkusefees | 8,953,500 | |
| Storageandleaseexpenses | 17,922,792 | 24,274,917 |
| Depreciationexpenses | 25,656,686 | 20,476,637 |
| Advertisementexpenses | 14,084,571 | 26,920,257 |
| Conferenceexpenses | 2,447,005 | 8,945,999 |
| Design&productionexpenses | 1,590,960 | 2,365,761 |
| Servicecharges | 3,608,458 | 11,484,614 |
| Travelexpenses | 8,356,075 | 11,822,548 |
| Water,electricityandgascharges | 4,080,146 | 7,697,325 |
| Office&postagecosts | 1,840,823 | 2,801,706 |
| Packingexpenses | 2,540,043 | 3,971,486 |
| Publicsecurity&clean-keepingexpenses | 1,854,437 | 2,214,479 |
| Businessentertainmentexpenses | 589,472 | 1,763,307 |
| Other | 6,435,820 | 14,584,873 |
| Total | 250,531,046 | 591,970,801 |
7.37Managementexpenses
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Employeeremunerations | 27,711,146 | 62,572,295 |
| Depreciationexpenses | 36,815,081 | 31,887,697 |
| Contractingexpenses | 6,687,337 | 7,178,106 |
| Repairexpenses | 4,750,072 | 8,253,897 |
| Officeexpenses | 5,617,017 | 10,177,651 |
| Amortizationexpenses | 10,475,529 | 7,677,849 |
| Afforestationfees | 6,910,323 | 7,682,946 |
| Safeproductioncosts | 2,506,681 | 2,357,016 |
| Rentalexpenses | 4,659,247 | 4,766,202 |
| Businessentertainmentexpenses | 1,480,213 | 2,631,383 |
Publicsecurity&clean-keepingexpenses
| Publicsecurity&clean-keepingexpenses | 2,957,475 | 3,356,435 |
| Travelexpenses | 424,412 | 2,971,468 |
| Other | 2,075,336 | 4,039,367 |
| Total | 113,069,869 | 155,552,312 |
7.38R&Dexpenses
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| R&Dexpenses | 1,805,988 | 2,706,811 |
| Total | 1,805,988 | 2,706,811 |
7.39Financialexpenses
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Interestexpenditure | 14,891,310 | 9,812,560 |
| Minus:Interestincome | 6,088,281 | 4,606,417 |
| Plus:Commissioncharges | 2,182,502 | 1,271,831 |
| Exchangegainorloss | 975,571 | 2,311,609 |
| Total | 11,961,102 | 8,789,583 |
7.40Otherincome
Unit:Yuan
| Sourceofotherincome | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Supportingfundforindustrialdevelopment | 2,050,000 | 2,050,000 |
| Rewardforinvestmentinfixedassets | 1,140,000 | 1,140,000 |
| Specialfundforconstructionofpeninsulablueeconomiczone | 1,000,000 | 1,000,000 |
| Other–relatedtoassets | 3,497,505 | 3,082,627 |
| Specialfundforsupportingcorporatedevelopment | 38,279,579 | 51,633,350 |
| Other–relatedtoincome | 3,813,147 | 5,305,915 |
| Total | 49,780,231 | 64,211,892 |
7.41Investmentincome
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Investmentincomefromlong-termequitybyequitymethod | -1,170,685 | |
| Investmentincomefromdisposaloflong-termequity | ||
| Investmentincomegainedfromtradingfinancialassetsduringtheholdingperiod | ||
| Investmentincomegainedfromdisposaloftradingfinancialassets | ||
| Dividendincomegainedfromotherequityinstruments |
Item
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| duringtheholdingperiod | ||
| Gainsgeneratedfromtheremainingequityremeasuredasperfairvalueafterthelossofcontrol | ||
| Interestincomegainedfromequityinverstmentduringtheholdingperiod | ||
| Interestincomegainedfromotherequityinverstmentsduringtheholdingperiod | ||
| Investmentincomegainedfromdisposalofotherequityinverstments | ||
| Total | -1,170,685 |
7.42Lossonimpairmentofcredit
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Lossonbaddebtsofaccountsreceivable | 100,835 | -765,935 |
| Total | 100,835 | -765,935 |
7.43Lossonimpairmentofassets
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| 1.Lossonbaddebts | ||
| 2.Inventoryfallingpricelossandlossonimpairmentofcontrctexecutioncost | 4,242,813 | 6,148,729 |
| 3.Lossonimpairmentoflong-termequityinvestment | ||
| 4.Lossonimpairmentofinvestmentrealestate | ||
| 5.Lossonimpairmentoffixedassets | ||
| 6.Lossonimpairmentofengineeringmaterials | ||
| 7.Lossonimpairmentofconstructioninprogress | ||
| 8.Lossonimpairmentofproductivebiologicalassets | ||
| 9.Lossonimpairmentofoilandgasassets | ||
| 10.Lossonimpairmentofintangibleassets | ||
| 11.Lossonimpairmentofgoodwill | ||
| 12.Other | ||
| Total | 4,242,813 | 6,148,729 |
7.44Incomefromassetdisposal
Unit:Yuan
| Sourceofincomefromassetdisposal | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Incomefromdisposaloffixedassets | 39,641 | 1,138 |
| Total | 39,641 | 1,138 |
7.45Non-operatingincome
Unit:Yuan
Item
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod | Amountincludedinthecurrentnon-recurringprofits/losses |
| Gainsondebtrecombination | |||
| Gainsonexchangeofnon-monetaryassets | |||
| Grainsondonations | |||
| Governmentalsubsidy | |||
| Other | 4,682,230 | 3,575,914 | 4,682,230 |
| Total | 4,682,230 | 3,575,914 | 4,682,230 |
7.46Non-operatingexpenses
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod | Amountincludedinthecurrentnon-recurringprofits/losses |
| Lossondebtrecombination | |||
| Lossonexchangeofnon-monetaryassets | |||
| Donation | 500,000 | 500,000 | |
| Fine,penaltyandoverduefinepaidduetoviolationoflawsandadministrativeregulations | 31,123 | 10,811 | 31,123 |
| Other | 336,150 | 153,239 | 336,150 |
| Total | 867,273 | 164,050 | 867,273 |
7.47Incometaxexpenses
7.47.1Listofincometaxexpenses
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Currentincometaxexpenses | 59,475,646 | 161,779,976 |
| Deferredincometaxexpenses | 50,214,323 | 48,501,602 |
| Total | 109,689,969 | 210,281,578 |
7.47.2Adjustmentprocessofaccountingprofitandincometaxexpenses
Unit:Yuan
| Item | Amountincurredinthisperiod |
| Totalprofit | 418,292,409 |
| Incometaxexpensescalculatedaccordingtothelegal/applicabletaxrate | 104,573,102 |
| Influenceofdifferenttaxratesapplicabletosubsidiary | 1,151,306 |
Item
| Item | Amountincurredinthisperiod |
| Influenceofincometaxinthetermbeforeadjustment | 155,763 |
| Influenceofnontaxableincome | |
| Influenceofnon-deductiblecosts,expensesandlosses | 1,878,100 |
| Influenceofdeductiblelossfromuseofunconfirmeddeferredincometaxassetsinpriorperiod | |
| Influenceofdeductibletemporarydifferenceordeductiblelossofunconfirmeddeferredincometaxassetsinthisperiod | 1,931,698 |
| Incometaxexpense | 109,689,969 |
7.48Othercomprehensiveincome
RefertoNote7.31fordetails.
7.49Itemsofcashflowstatement
7.49.1Othercashreceivedrelatedtooperatingactivities
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Governmentalsubsidyincome | 40,851,851 | 62,580,748 |
| Interestincome | 3,865,811 | 2,835,438 |
| Netamercementincome | 269,694 | 1,225,511 |
| Other | 3,186,178 | 1,143,923 |
| Total | 48,173,534 | 67,785,620 |
7.49.2Othercashpaidrelatedtooperatingactivities
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Sellingexpenses | 218,880,805 | 348,849,996 |
| Administrativeexpenses | 37,212,155 | 41,017,612 |
| Other | 3,049,775 | 2,912,859 |
| Total | 259,142,735 | 392,780,467 |
7.50Supplementaryinformationtocashflowstatement
7.50.1Supplementaryinformationtocashflowstatement
Unit:Yuan
| Supplementarymaterials | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| 1.Cashflowsfromoperatingactivitiescalculatedbyadjustingthenetprofit: | -- | -- |
| Netprofit | 308,602,440 | 602,178,315 |
| Plus:Provisionforimpairmentofassets | -4,343,648 | -5,382,794 |
| Depreciationoffixedassets,oil-and-gasassets | 143,241,376 | 155,147,729 |
Supplementarymaterials
| Supplementarymaterials | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| andproductivebiologicalassets | ||
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 11,145,536 | 8,438,742 |
| Amortizationoflong-termdeferredexpenses | 7,613,342 | 6,662,662 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(profitlistedwith“－”) | -39,641 | -1,138 |
| Lossesonretirementoffixedassets(profitlistedwith“－”) | 2,127 | |
| Lossesonfairvaluechange(profitlistedwith“－”) | ||
| Financialcosts(profitlistedwith“－”) | 13,316,860 | 13,987,879 |
| Investmentlosses(profitlistedwith“－”) | 1,170,685 | |
| Decreaseindeferredincometaxassets(increaselistedwith“-”) | 50,602,610 | 50,789,656 |
| Increaseofdeferredincometaxliabilities(decreaselistedwith“－”) | -388,287 | -3,381,035 |
| Decreaseininventories(increaselistedwith“-”) | -52,113,529 | 123,958,750 |
| Decreaseinoperatingreceivables(increaselistedwith“-”) | 180,626,835 | -172,662,167 |
| Increaseinoperatingpayable(decreaselistedwith“-”) | -689,089,527 | -280,260,593 |
| Other | ||
| Netcashflowsfromoperatingactivities | -29,652,821 | 499,476,006 |
| 2.Significantinvestmentandfinancingactivitiesnotinvolvingcashdepositandwithdrawal: | -- | -- |
| Debttransferredintoassets | ||
| Convertiblecorporatebondduewithin1year | ||
| Fixedassetsunderfinancinglease | ||
| 3.Netchangesofcashandcashequivalent: | -- | -- |
| Endingbalanceofcash | 1,300,790,389 | 1,573,727,077 |
| Minus:Beginningbalanceofcash | 1,365,772,675 | 1,206,860,334 |
| Plus:Endingbalanceofcashequivalent | ||
| Minus:Beginningbalanceofcashequivalent | ||
| Netincreaseamountofcashandcashequivalent | -64,982,286 | 366,866,743 |
7.50.2Compositionofcashandcashequivalents
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| 1.Cash | 1,300,790,389 | 1,365,772,675 |
| Including:Cashonhand | 38,910 | 59,975 |
| Bankdepositsondemand | 1,300,751,479 | 1,365,712,700 |
| Othermonetarycapitalondemand | ||
| Duefromcentralbankavailableforpayment | ||
| Duefromtheindustry | ||
| Inter-banklending | ||
| 2.Cashequivalents |
Item
| Item | Endingbalance | Beginningbalance |
| Including:Bondinvestmentduewithinthreemonths | ||
| 3.Balanceofcashandcashequivalentsattheendofperiod | 1,300,790,389 | 1,365,772,675 |
| Including:Restricteduseofparentcompanyorsubsidiariesinthegroup |
7.51Assetswithownershiporuserightrestrictions
| Item | Endingbookvalue | Reasonforrestriction |
| Monetarycapital | 94,216,666 | Loandeposit,L/Cdeposit,frozenbalanceofAlipay,housingfundandguarantymoneyfordepositinunitcard |
| Billsreceivable | 31,557,404 | Pledgeofshort-termloans |
| Fixedassets | 338,237,400 | Pledgeofshort-termloans,long-termloansandlong-termaccountspayable |
| Intangibleassets | 209,707,945 | Pledgeoflong-termaccountspayable |
| Total | 673,719,415 | -- |
8.Changesinscopeofconsolidation
Nil
9.Equityinotherentities
9.1Equityinthesubsidiaries
9.1.1Constitutionofenterprisegroup
| Nameofsubsidiary | Principalbusinesslocation | Registrationplace | Businessnature | Proportionofshareholding | Acquisitionmode | |
| Direct | Indirect | |||||
| XinjiangTianzhuWineCo.,Ltd.(“XinajingTianzhu”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | 60% | Acquiredfromabusinesscombinationundernon-commoncontrol | |
| EtablissementsRoulletFransac(“RoulletFransac”) | Cognac,France | Cognac,France | Trading | 100% | Acquiredfromabusinesscombinationundernon-commoncontrol | |
| DicotPartners,S.L(“Dicot”) | Navarre,Spain | Navarre,Spain | Sales | 75% | Acquiredfromabusinesscombinationundernon-commoncontrol | |
| Vi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSpA.(“ChileIndomitaWineGroup”) | Santiago,Chile | Santiago,Chile | Sales | 85% | Acquiredbyestablishmentorinvestment | |
| KilikanoonEstatePtyLtd(“AustraliaKilikanoonEstate”) | Adelaide,Australia | Adelaide,Australia | Sales | 82.50% | Acquiredfromabusinesscombinationundernon-commoncontrol | |
| BeijingChangyuSalesandDistributionCo.,Ltd | Beijing,China | Beijing,China | Sales | 100% | Acquiredbyestablishmentor | |
Nameofsubsidiary
| Nameofsubsidiary | Principalbusinesslocation | Registrationplace | Businessnature | Proportionofshareholding | Acquisitionmode | |
| Direct | Indirect | |||||
| ("BeijingSales") | investment | |||||
| YantaiKylinPackagingCo.,Ltd.("KylinPackaging") | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | 100% | Acquiredbyestablishmentorinvestment | |
| YantaiChateauChangyu-CastelCo.,Ltd("ChateauChangyu")(b) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | 70% | Acquiredbyestablishmentorinvestment | |
| Changyu(Jingyang)WineCo.,Ltd.("JingyangWine") | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | 90% | 10% | Acquiredbyestablishmentorinvestment |
| YantaiChangyuPioneerWineSalesCo.,Ltd.("SalesCompany") | Yantai,Shandong,China | Yantai,Shandong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd("LangfangCastel") | Langfang,Hebei,China | Langfang,Hebei,China | Manufacturing | 39% | 10% | Acquiredbyestablishmentorinvestment |
| Changyu(Jingyang)WineSalesCo.,Ltd.("JingyangSales") | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Sales | 10% | 90% | Acquiredbyestablishmentorinvestment |
| LangfangChangyuPioneerWineSalesCo.,Ltd("LangfangSales") | Langfang,Hebei,China | Langfang,Hebei,China | Sales | 10% | 90% | Acquiredbyestablishmentorinvestment |
| ShanghaiChangyuSalesandDistributionCo.,Ltd.("ShanghaiSales") | Shanghai,China | Shanghai,China | Sales | 30% | 70% | Acquiredbyestablishmentorinvestment |
| BeijingChangyuAFIPAgriculturedevelopmentCo.,Ltd("AgricultureDevelopment") | Miyun,Beijing,China | Miyun,Beijing,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd.(“AFIP”)(c) | Beijing,China | Beijing,China | Manufacturing | 91.53% | Acquiredbyestablishmentorinvestment | |
| YantaiChangyuWineSalesCo.,Ltd.("WinesSales") | Yantai,Shandong,China | Yantai,Shandong,China | Sales | 90% | 10% | Acquiredbyestablishmentorinvestment |
| YantaiChangyuPioneerInternationalCo.,Ltd.("PioneerInternational") | Yantai,Shandong,China | Yantai,Shandong,China | Sales | 70% | 30% | Acquiredbyestablishmentorinvestment |
| HangzhouChangyuWineSalesCo.,Ltd.("HangzhouChangyu") | Hangzhou,Zhejiang,China | Hangzhou,Zhejiang,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”) | Yinchuan,Ningxia,China | Ningxia,China | Planting | 100% | Acquiredbyestablishmentorinvestment | |
| HuanrenChangyuNationalWinesSalesCo.,Ltd.("NationalWines") | Benxi,Liaoning,China | Benxi,Liaoning,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd.("GoldenIcewineValley")(d) | Benxi,Liaoning,China | Benxi,Liaoning,China | Manufacturing | 51% | Acquiredbyestablishmentorinvestment | |
Nameofsubsidiary
| Nameofsubsidiary | Principalbusinesslocation | Registrationplace | Businessnature | Proportionofshareholding | Acquisitionmode | |
| Direct | Indirect | |||||
| YantaiDevelopmentZoneChangyuTradingCo.,Ltd.("DevelopmentZoneTrading") | Yantai,Shandong,China | Yantai,Shandong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| YantaiChangyuFushanTradingCompany("FushanTrading") | Yantai,Shandong,China | Yantai,Shandong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| BeijingAFIPMeetingCenter("MeetingCenter") | Miyun,Beijing,China | Miyun,Beijing,China | Services | 100% | Acquiredbyestablishmentorinvestment | |
| BeijingAFIPTourismandCulture("AFIPTourism") | Miyun,Beijing,China | Miyun,Beijing,China | Tourism | 100% | Acquiredbyestablishmentorinvestment | |
| Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”) | Ningxia,China | Ningxia,China | Manufacturing | 100% | Acquiredbyestablishmentorinvestment | |
| YantaiChangyuChateauTinlotCo.,Ltd.("ChateauTinlot") | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | 65% | 35% | Acquiredbyestablishmentorinvestment |
| QingTongXiaChangyuWineMarketingLtd.("QingTongXiaSales") | Ningxia,China | Ningxia,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | 100% | Acquiredbyestablishmentorinvestment | |
| NingxiaChateauChangyuMoserXVCo.,Ltd.(“ChateauNingxia”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Manufacturing | 100% | Acquiredbyestablishmentorinvestment | |
| ShaanxiChateauChangyuRenaCo.,Ltd.(“ChateauChang’an”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | 100% | Acquiredbyestablishmentorinvestment | |
| YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”)(e) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | 72% | Acquiredbyestablishmentorinvestment | |
| Changyu(HuanRen)WineCo.,Ltd("HuanRenWine") | Benxi,Liaoning,China | Benxi,Liaoning,China | Manufacturing | 100% | Acquiredbyestablishmentorinvestment | |
| XinjiangChangyuSalesCo.,Ltd("XinjiangSales") | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| NingxiaChangyuTradingCo.,Ltd("NingxiaTrading") | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| ShaanxiChangyuRenaWineSalesCo.,Ltd("ShaanxiSales") | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| PenglaiChangyuWineSalesCo.,Ltd("PenglaiWine") | Penglai,Shandong,China | Penglai,Shandong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| LaizhouChangyuWineSalesCo.,Ltd("LaizhouSales") | Laizhou,Shandong,China | Laizhou,Shandong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
Nameofsubsidiary
| Nameofsubsidiary | Principalbusinesslocation | Registrationplace | Businessnature | Proportionofshareholding | Acquisitionmode | |
| Direct | Indirect | |||||
| FrancsChampsParticipationsSAS(“FrancsChamps”) | Cognac,France | Cognac,France | Investmentandtrading | 100% | Acquiredbyestablishmentorinvestment | |
| BeijingRetailingCo.Ltd("BeijingRetailing") | Beijing,China | Beijing,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| TianjinChangyuPioneerSalesCo.,Ltd("TianjinPioneer")(a) | Tianjin,China | Tianjin,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| BeijingChangyuPioneerSalesCo.,Ltd("BeijingPioneer")(a) | Beijing,China | Beijing,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| YantaiRoulletFransacWineSalesCo.,Ltd.(“YantaiRoulletFransac”) | Yantai,Shandong,China | Yantai,Shandong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| GuangzhouChangyuPioneerSalesCo.,Ltd("GuangzhouPioneer")(a) | Guanghzou,Guangdong,China | Guanghzou,Guangdong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| YantaiChangyuWineSalesCo.,Ltd.("WineSalesCompany") | Yantai,Shandong,China | Yantai,Shandong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
| ShaanxiChateauChangyuRenaTourismCo.,Ltd("ChateauTourism") | Xianxin,Shaanxi,China | Xianxin,Shaanxi,China | Tourism | 100% | Acquiredbyestablishmentorinvestment | |
| LongkouChangyuWineSalesCo.,Ltd("LongkouSales") | Yantai,Shandong,China | Yantai,Shandong,China | Sales | 100% | Acquiredbyestablishmentorinvestment | |
Explanationfordifferencebetweentheproportionofshareholdingandproportionofvotingpowerinthesubsidiaries:
(a)Companiesabovewerederegisteredin2020.(b)ChateauChangyuisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,accountingfor70%ofChangyuChateau'sequityinterest.Throughagreementarrangement,theCompanyhasthefullpowertocontrolChangyuChateau'sstrategicoperating,investingandfinancingpolicies.TheagreementarrangementwillbeterminatedonDecember31,2022.(c)AFIPisalimitedliabilitycompanyjointlyestablishedbytheCompanyandYantaiDe’anandBeijingQinglang.InJune2019,YantaiDeantransferred1.31%ofitsequitytoYantaiChangyu.Aftertheequitychange,theCompanyholds91.53%ofitsequity.Throughagreementarrangement,theCompanyhasthefullpowertocontrolAFIP'sstrategicoperating,investingandfinancingpolicies.TheagreementarrangementwillbeterminatedonSeptember2,2024.(d)IcewineValleyisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,whose51%ofthesharesareheldbytheCompany.TheCompanyexercisesfullcontrolovertheoperation,investmentandfinancingpoliciesofIcewineValleybycontractarrangement.ThecontractarrangementwillexpireonDecember31,2021.(e)TheResearch,Development&ManufactureCompanyisajointventureestablishedbythe
CompanyandAgriculturalDevelopmentFund,whose72%oftheshareswereheldbytheCompanyonDecember31,2019.AsstatedinNote7.27,theCompanyexercisesfullcontrolovertheoperation,investmentandfinancingpoliciesoftheResearch,Development&ManufactureCompanybycontractarrangement.ThecontractarrangementwillexpireonMay22,2026.UptoJune30,2020,theremaininginvestmentoftheAgriculturalDevelopmentFundaccountedfor28.67%oftheregisteredcapital.
9.1.2Importantnon-wholly-ownedsubsidiaries
Unit:Yuan
Nameofsubsidiary
| Nameofsubsidiary | Shareholdingproportionofminorityshareholders | Profit/lossattributabletominorityshareholdersinthisperiod | Othercomprehensiveincomeattributabletominorityshareholdersinthisperiod | Dividenddeclaredtobedistributedtominorityshareholdersinthisperiod | Balanceofminorityshareholder’sinterestattheendofperiod |
| XinjiangTianzhu | 40% | -1,268,453 | 46,315,685 | ||
| AtrioGroup | 25% | 2,735,240 | 538,514 | 995,125 | 34,148,093 |
| ChangyuChateau | 30% | 12,365,016 | |||
| LangfangCastel | 51% | -605,347 | 19,033,761 | ||
| AFIP | 8.47% | 56,409,393 | |||
| IcewineValley | 49% | 33,319,062 | |||
| IndomitaWine | 15% | 549,632 | -1,094,853 | 53,385,908 | |
| KilikanoonEstate,Australia | 17.50% | 155,796 | -202,830 | 185,128 | 14,578,260 |
Explanationfordifferencebetweentheproportionofshareholdingandproportionofvotingpoweroftheminorityshareholdersinthesubsidiaries:SeedetailsinNote9.1.1.
9.1.3Mainfinancialinformationofimportantnon-wholly-ownedsubsidiaries
Unit:Yuan
Nameofsubsidiary
| Nameofsubsidiary | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| XinjiangTianzhu | 25,075,535 | 59,767,796 | 84,843,331 | 140,364 | 5,336,114 | 5,476,478 | 24,829,435 | 61,886,751 | 86,716,186 | 36,185 | 5,336,114 | 5,372,299 |
| ChangyuChateau | 130,901,716 | 112,847,346 | 243,749,063 | 163,197,646 | 163,197,646 | 142,525,011 | 113,168,202 | 255,693,213 | 174,843,671 | 400,000 | 175,243,671 | |
| LangfangCastel | 15,755,772 | 14,271,097 | 30,026,870 | 1,256,937 | 1,256,937 | 19,021,766 | 14,958,223 | 33,979,989 | 4,023,101 | 4,023,101 | ||
| BeijingChateau | 250,019,242 | 441,579,625 | 691,598,867 | 35,864,457 | 188,500 | 36,052,957 | 251,829,164 | 452,444,880 | 704,274,044 | 45,607,611 | 201,500 | 45,809,111 |
| IcewineValley | 49,358,507 | 22,498,140 | 71,856,647 | 26,818,687 | 100,000 | 26,918,687 | 38,234,720 | 23,291,375 | 61,526,095 | 12,077,206 | 100,000 | 12,177,206 |
| MarquesdelAtrio | 414,831,789 | 94,319,003 | 509,150,792 | 226,512,338 | 145,632,259 | 372,144,597 | 470,219,326 | 91,571,444 | 561,790,770 | 380,788,880 | 53,110,213 | 433,899,093 |
| IndomitaWine | 214,245,502 | 289,781,873 | 504,027,375 | 135,350,982 | 5,212,702 | 140,563,684 | 223,722,688 | 291,630,115 | 515,352,803 | 142,365,749 | 5,152,974 | 147,518,723 |
| KilikanoonEstate,Australia | 105,402,015 | 61,788,070 | 167,190,085 | 24,695,865 | 60,119,965 | 84,815,830 | 94,473,620 | 61,770,599 | 156,244,219 | 21,801,347 | 50,741,981 | 72,543,328 |
Unit:Yuan
| Nameofsubsidiary | Amountincurredinthisperiod | Amountincurredinpriorperiod | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Operatingcashflow | Operatingincome | Netprofit | Totalcomprehensiveincome | Operatingcashflow | |
| XinjiangTianzhu | -3,171,133 | -3,171,133 | -756,855 | -3,001,571 | -1,297,212 | -417,462 | ||
| ChangyuChateau | 15,274,042 | -416,327 | -416,327 | 9,574,274 | 24,470,842 | -2,189,871 | -686,874 | 6,946,282 |
| LangfangCastel | 116,711 | -1,186,955 | -1,186,955 | -54,248 | -1,474,975 | -821,013 | 25,801 | |
| BeijingChateau | 50,688,043 | -2,919,024 | -2,919,024 | -1,954,062 | 90,339,526 | 12,711,985 | 22,752,823 | 9,667,568 |
| IcewineValley | 7,365,586 | -4,410,928 | -4,410,928 | 733,935 | 19,763,387 | -1,986,710 | -754,056 | 1,903,734 |
| MarquesdelAtrio | 130,982,536 | 10,940,963 | 13,095,017 | -50,830,985 | 129,064,457 | 1,859,381 | -4,084,674 | -23,846,960 |
| IndomitaWine | 78,507,227 | 3,664,211 | -3,634,807 | 29,108,449 | 86,818,838 | 3,762,504 | 1,880,687 | -1,725,571 |
| KilikanoonEstate,Australia | 18,928,910 | 890,266 | -268,764 | -6,891,812 | 22,852,809 | -1,509,147 | -4,011,458 | 1,024,962 |
10.Risksrelatedtofinancialinstruments
TheGrouphasexposuretothefollowingmainrisksfromitsuseoffinancialinstrumentsinthenormalcourseoftheGroup’soperations:
-Creditrisk-Liquidityrisk-Interestraterisk-ForeigncurrencyriskThefollowingmainlypresentsinformationabouttheGroup’sexposuretoeachoftheaboverisksandtheirsources,theirchangesduringtheyear,andtheGroup’sobjectives,policiesandprocessesformeasuringandmanagingrisks,andtheirchangesduringtheyear.TheGroupaimstoseekappropriatebalancebetweentherisksandbenefitsfromitsuseoffinancialinstrumentsandtomitigatetheadverseeffectsthattherisksoffinancialinstrumentshaveontheGroup’sfinancialperformance.Basedonsuchobjectives,theGroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.
10.1Creditrisk
Creditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischargeanobligation.TheGroup’screditriskisprimarilyattributabletocashatbank,receivables,debtinvestmentsandderivativefinancialinstrumentsenteredintoforhedgingpurposes.Exposuretothesecreditrisksaremonitoredbymanagementonanongoingbasis.ThecashatbankoftheGroupismainlyheldwithwell-knownfinancialinstitutions.ManagementdoesnotforeseeanysignificantcreditrisksfromthesedepositsanddoesnotexpectthatthesefinancialinstitutionsmaydefaultandcauselossestotheGroup.AsatJune30,2020,theGroup'smaximumexposuretocreditriskwhichwillcauseafinanciallosstotheGroupduetofailuretodischargeanobligationbythecounterparties.
Inordertominimisethecreditrisk,theGrouphasadoptedapolicytoensurethatallsalescustomershavegoodcreditrecords.AccordingtothepolicyoftheGroup,creditreviewisrequiredforclientswhorequirecredittransactions.Inaddition,theGroupcontinuouslymonitorsthebalanceofaccountreceivabletoensurethere’snoexposuretosignificantbaddebtrisks.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecificapprovaloftheDepartmentofCreditControlintheGroup.Inaddition,theGroupreviewstherecoverableamountofeachindividualtradedebtateachbalancesheetdatetoensurethatadequateimpairmentlossesaremadeforirrecoverableamounts.Inthisregard,themanagementoftheGroupconsidersthattheGroup'screditriskissignificantlyreduced.SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Concentrationsofcreditriskaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.AsatJune30,2020,20.1%oftheGrouptradereceivablesareduefromtopfivecustomers(December31,2019:20.3%).ThereisnocollateralorothercreditenhancementonthebalanceofthetradereceivablesoftheGroup.
10.2Liquidityrisk
Liquidityriskistheriskthatanenterprisewillencounterdifficultyinmeetingobligationsthataresettledbydeliveringcashoranotherfinancialasset.TheCompanyanditsindividualsubsidiariesareresponsiblefortheirowncashmanagement,includingshort-terminvestmentofcashsurplusesandtheraisingofloanstocoverexpectedcashdemands(subjecttoapprovalbytheCompany’sboardwhentheborrowingsexceedcertainpredeterminedlevels).TheGroup’spolicyistoregularlymonitoritsliquidityrequirementsanditscompliancewithlendingcovenants,toensurethatitmaintainssufficientreservesofcash,readilyrealisablemarketablesecuritiesandadequatecommittedlinesoffundingfrommajorfinancialinstitutionstomeetitsliquidityrequirementsintheshortandlongerterm.
10.3Interestraterisk
Interest-bearingfinancialinstrumentsatvariableratesandatfixedratesexposetheGrouptocashflowinterestrateriskandfairvalueinterestrisk,respectively.TheGroupdeterminestheappropriateweightingsofthefixedandfloatingrateinterest-bearinginstrumentsbasedonthecurrentmarketconditionsandperformsregularreviewsandmonitoringtoachieveanappropriatemixoffixedandfloatingrateexposure.
(1)AsatJune30,2020,theGroupheldthefollowinginterest-bearingfinancialinstruments:
Fixedrateinstruments:
Unit:Yuan
Item
| Item | June30,2020 | December31,2019 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 1.4%-2.75% | 81,200,000 | 1.1%-2.75% | 106,128,600 |
| Financialliabilities | ||||
| -Short-termloans | 0.35%-4.9% | -187,183,701 | 0.35%-4.9% | -204,313,744 |
| -Long-termloans(includingtheportionduewithinoneyear) | 1%-4.275% | -239,859,400 | 1%-2.5% | -189,468,722 |
| -Long-termpayables(includingtheportionduewithinoneyear) | 1.20% | -201,000,000 | 1.20% | -225,000,000 |
| Total | -546,843,101 | -512,653,866 | ||
Variablerateinstruments:
Unit:Yuan
| Item | June30,2020 | December31,2019 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 0.3%-1.1% | 1,395,007,055 | 0.3%-1.75% | 1,459,595,405 |
| Financialliabilities | ||||
| -Short-termloans | LPR | -550,000,000 | LPR | -550,000,000 |
| -Long-termloans(includingtheportionduewithinoneyear) | 90%of5-yearLPR | -43,750,000 | 90%of5-yearLPR | -56,250,000 |
| Total | 801,257,055 | 853,345,405 | ||
(2)SensitivityanalysisManagementoftheGroupbelievesinterestrateriskonbankdepositisnotsignificant,thereforedoesnotdisclosesensitivityanalysisforinterestraterisk.AsatJune30,2020,basedonassumptionsabove,itisestimatedthatageneralincreaseof50basispointsininterestrates,withallothervariablesheldconstant,woulddecreasetheGroup’sequitybyRMB1,113,281Yuan(2019:RMB2,273,438Yuan),andnetprofitbyRMB1,113,281Yuan(2019:
RMB2,273,438Yuan).Thesensitivityanalysisaboveindicatestheinstantaneouschangeinthenetprofitandequitythatwouldariseassumingthatthechangeininterestrateshadoccurredatthebalancesheetdateandhadbeenappliedtore-measurethosefinancialinstrumentsheldbytheGroupwhichexposetheGroupto
fairvalueinterestrateriskatthebalancesheetdate.Inrespectoftheexposuretocashflowinterestrateriskarisingfromfloatingratenon-derivativeinstrumentsheldbytheGroupatthebalancesheetdate,theimpactonthenetprofitandequityisestimatedasanannualisedimpactoninterestexpenseorincomeofsuchachangeininterestrates.
10.4Foreigncurrencyrisk
Inrespectofcashatbankandonhand,accountsreceivableandpayable,short-termloansdenominatedinforeigncurrenciesotherthanthefunctionalcurrency,theGroupensuresthatitsnetexposureiskepttoanacceptablelevelbybuyingorsellingforeigncurrenciesatspotrateswhennecessarytoaddressshort-termimbalances.
(1)AsatJune30,2020,theGroup’sexposuretocurrencyriskarisingfromrecognisedassetsorliabilitiesdenominatedinforeigncurrenciesispresentedinthefollowingtables.Forpresentationpurposes,theamountsoftheexposureareshowninRenminbi,translatedusingthespotrateatthebalancesheetdate.Differencesresultingfromthetranslationofthefinancialstatementsdenominatedinforeigncurrencyareexcluded.
Unit:Yuan
Item
| Item | June30,2020 | December31,2019 | ||
| Balanceatforeigncurrency | BalanceatRMBequivalent | Balanceatforeigncurrency | BalanceatRMBequivalent | |
| Cashatbankandonhand | 5,423,409 | 38,957,649 | 6,662,525 | 46,592,414 |
| -USD | 4,783,307 | 33,863,425 | 6,525,673 | 45,524,399 |
| -EUR | 639,871 | 5,094,014 | 136,628 | 1,067,814 |
| -HKD | 230 | 210 | 224 | 201 |
| Short-termloans | 12,490,000 | 88,422,955 | 12,490,000 | 87,132,738 |
| -USD | 12,490,000 | 88,422,955 | 12,490,000 | 87,132,738 |
(2)SensitivityanalysisAssumingallotherriskvariablesremainedconstant,a5%strengtheningoftheRenminbiagainsttheUSdollar,EuroandHongKongdollaratJune30,2020wouldhaveimpactontheGroup’sequityandnetprofitbytheamountshownbelow,whoseeffectisinRenminbiandtranslatedusingthespotrateattheyear-enddate:
Unit:Yuan
| Item | Equity | Netprofit |
| June30,2020 | ||
| USD | 2,727,977 | 2,727,9777 |
| EUR | -53,391 | -53,391 |
| HKD | ||
| Total | 2,674,586 | 2,674,586 |
December31,2019
| December31,2019 | ||
| USD | 2,080,417 | 2,080,417 |
| EUR | -53,391 | -53,391 |
| HKD | -10 | -10 |
| Total | 2,027,016 | 2,027,016 |
A5%weakeningoftheRenminbiagainsttheUSdollar,EuroandHongKongdollaratJune30,2020wouldhavehadtheequalbutoppositeeffecttotheamountsshownabove,onthebasisthatallothervariablesremainedconstant.
11.Fairvaluedisclosure
AllfinancialassetsandfinancialliabilitiesheldbytheGrouparecarriedatamountsnotmateriallydifferentfromtheirfairvalueatJune30,2020.
12.Relatedpartiesandrelatedtransactions
12.1ParticularsoftheparentcompanyoftheCompany
| Nameofparentcompany | Registrationplace | Businessnature | Registeredcapital | ProportionofshareholdingoftheparentcompanyintheCompany | ProportionofvotingpowersoftheparentcompanyintheCompany |
| ChangyuGroupCompany | YantaiCity | Manufacturingindustry | 50,000,000 | 50.40% | 50.40% |
FromJanuarytoJune2020,therewasnofluctuationintheregisteredcapitaloftheparentcompanyanditsshareinequityinterestandvotingright.
12.2ParticularsofthesubsidiariesoftheCompany
SeeparticularsofthesubsidiariesoftheCompanyinNote9.
12.3InformationaboutjointventuresandassociatesoftheCompanyOtherjointventuresandassociatesthathaverelatedpartytransactionswiththeCompanyduringthisperiodorthatformedbalancewhenhavingrelatedpartytransactionswiththeCompanyduringthepriorperiodareasfollows:
| Nameofentity | RelationshipwiththeCompany |
| L&MHoldings | JointventureoftheGroup |
12.4Particularsofotherrelatedparties
Nameofotherrelatedparties
| Nameofotherrelatedparties | RelationshipbetweenotherrelatedpartiesandtheCompany |
| YantaiChangyuWineCultureMuseumCo.,Ltd.(“WineCultureMuseum”) | Acompanycontrolledbythesameparentcompany |
| YantaiChangyuWindowofInternationalWineCityCo.Ltd.(“WindowofWineCity”) | Acompanycontrolledbythesameparentcompany |
| YantaiGodHorsePackingCo.,Ltd.(“GodHorsePacking”) | Acompanycontrolledbythesameparentcompany |
| YantaiZhongyaMedicalHealthWineCo.,Ltd.(“ZhongyaMedical”) | Acompanycontrolledbythesameparentcompany |
| YantaiChangyuCulturalTourismProductSalesCo.,Ltd.(“CulturalSales”) | Acompanycontrolledbythesameparentcompany |
| YantaiChangyuCulturalTourismDevelopmentCo.,Ltd.(“CulturalDevelopment”) | Acompanycontrolledbythesameparentcompany |
| L&MHoldings | Jointventures |
| Mirefleurs | Subsidiariesofthejointventure |
| CHATEAUDELIVERSAN(“LIVERSAN”） | Subsidiariesofthejointventure |
12.5Relatedtransactions
12.5.1RelatedtransactionsofpurchasingandsellinggoodsandprovidingandreceivingservicesListofpurchasinggoods/receivingservices
Unit:Yuan
| Relatedparties | Relatedtransactions | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| GodHorsePacking | Purchasinggoods | 35,624,517 | 95,990,354 |
| ZhongyaMedical | Purchasinggoods | 574,791 | 6,037,893 |
| WineCultureMuseum | Purchasinggoods | 5,975,817 | 9,475,159 |
| WindowofWineCity | Purchasinggoods | 1,014,685 | 2,857,130 |
| CulturalSales | Purchasinggoods | 3,265,703 | |
| CulturalDevelopment | Purchasinggoods | 156,616 |
Listofsellinggoods/providingservices
Unit:Yuan
| Relatedparties | Relatedtransactions | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| WineCultureMuseum | Sellinggoods | 2,765,314 | 3,377,011 |
| WindowofWineCity | Sellinggoods | 1,441,166 | 3,891,101 |
| ZhongyaMedical | Sellinggoods | 1,349,021 | 2,559,870 |
Relatedparties
| Relatedparties | Relatedtransactions | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| GodHorsePacking | Sellinggoods | 1,915 | 3,520 |
| CulturalSales | Sellinggoods | 21,600 | 3,873,204 |
| CulturalDevelopment | Sellinggoods | 1,836,470 | 1,847,727 |
ThepriceoftransactionsbetweentheGroupandtherelatedpartiesarebasedonthenegotiatedprice.
12.5.2Relatedtrusteeship/contractingandmandatoryadministration/outsourcingNil
12.5.3Leasingwithrelatedparties
TheCompanyasalessor:
Unit:Yuan
| Nameofthelessee | Typeofleasedassets | Rentalincomerecognizedinthisperiod | Rentalincomerecognizedinpriorperiod |
| GodHorsePacking | Officebuildingandplant | 746,275 | 742,883 |
| ZhongyaMedical | Officebuilding | 260,279 |
TheCompanyasalessee:
Unit:Yuan
| Nameofthelessor | Typeofleasedassets | Rentrecognizedinthisperiod | Rentrecognizedinpriorperiod |
| ChangyuGroupCompany | Officebuildingandplant | 3,595,583 | 3,447,891 |
12.5.4Relatedguarantee
Nil
12.5.5Inter-bankborrowingandlendingofrelatedparties
Nil
12.5.6Assettransferanddebtrecombinationofrelatedparties
Nil
12.5.7Otherrelatedtransactions
Unit:Yuan
| Item | Note | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Trademarkusefee | (a) | 8,977,248 |
ThepriceoftransactionsbetweentheGroupandtherelatedpartiesarebasedonthenegotiatedprice.
12.6Accountsreceivableandpayableoftherelatedparties
12.6.1Accountsreceivable
Unit:Yuan
Item
| Item | Relatedparties | Endingbalance | Beginningbalance | ||
| Bookbalance | Provisionforbaddebts | Bookbalance | Provisionforbaddebts | ||
| Accountsreceivable | ZhongyaMedical | 2,005,182 | 67,379 | 4,292,386 | 59,268 |
| Accountsreceivable | WindowofWineCity | 1,610,485 | 22,237 | ||
| Otherreceivable | ChangyuGroup | 3,775,362 | |||
| Otherreceivables | GodHorsePacking | 1,626,800 | 813,400 | ||
| Othernon-currentassets | ChangyuGroup | 184,158,436 | 193,674,320 | ||
| Prepayment | Mirefleurs | 6,429,542 | |||
| Prepayment | L&MHoldings | 1,632,941 | |||
12.6.2Accountspayable
Unit:Yuan
| Item | Relatedparties | Endingbookbalance | Beginningbookbalance |
| Accountspayable | GodHorsePacking | 37,075,376 | 39,893,538 |
| Accountspayable | ZhongyaMedical | 4,392,389 | 1,024,310 |
| Accountspayable | WineCultureMuseum | 4,874,963 | |
| Accountspayable | WindowofWineCity | 3,758,054 | |
| Accountspayable | CulturalSales | 297,956 | |
| Accountspayable | CulturalDevelopment | 142,610 | |
| Otheraccountspayable | GodHorsePacking | 604,000 | 450,000 |
13.Share-basedpayment
Nil
14.Commitmentandcontingency
14.1Significantcommitment
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Makinglong-termassetcommitments | 539,980,000 | 679,980,000 |
14.2ContingencyAsofthebalancesheetdate,theGroupdidn’thaveanycontingencytobedisclosed.
15.Mattersafterbalancesheet
15.1Importantnon-adjustingevents
Nil
15.2Profitdistribution
Unit:Yuan
Profitsordividendstobedistributed
| Profitsordividendstobedistributed | 479,824,800 |
| Allocatedprofitsordividendsapprovedtodeclareupondiscussion | 479,824,800 |
15.3Otherstatementofeventsafterthebalancesheetdate
AccordingtothedecisionoftheShareholders’MeetingdatedMay17,2020,basedontheissuedcapitalstockof685,464,000sharesin2019,theCompanyallocatedRMB7Yuanincash(includingtax)forevery10sharestoallshareholderswiththetotalcashdividendsofRMB479,824,800Yuan.SuchcashdividendsweredistributedonJuly10,2020andJuly14,2020respectively.
16.Otherimportantmatters
Nil
17.Notesonmajoritemsinfinancialstatementsoftheparentcompany
17.1Accountsreceivable
17.1.1Accountsreceivabledisclosedbytype
Unit:Yuan
| Type | Endingbalance | Beginningbalance | ||||||||
| Bookbalance | Provisionforbaddebts | Bookvalue | Bookbalance | Provisionforbaddebts | Bookvalue | |||||
| Amount | Proportion | Amount | Accruedproportion | Amount | Proportion | Amount | Accruedproportion | |||
| Accountsreceivableforwhichprovisionforbaddebtsisaccruedonasingleitembasis | ||||||||||
Accountsreceivableforbaddebtsisaccruedonacombinedbasis
| Accountsreceivableforbaddebtsisaccruedonacombinedbasis | 304,238 | 100% | 1,978 | 0.7% | 302,260 | 2,589,936 | 100% | 601,610 | 23.2% | 1,988,326 |
| Total | 304,238 | 100% | 1,978 | 0.7% | 302,260 | 2,589,936 | 100% | 601,610 | 23.2% | 1,988,326 |
Provisionforbaddebtsaccruedonacombinedbasis:
Unit:Yuan
| Name | Endingbalance | ||
| Bookbalance | Provisionforbaddebts | Accruedproportion | |
| Amountsduefromrelatedparties | 304,238 | 1,978 | 0.7% |
| Total | 304,238 | 1,978 | -- |
Disclosedbyage:
Unit:Yuan
| Age | Endingbalance |
| Within1year(including1year) | 304,238 |
| 1-2years | |
| 2-3years | |
| Over3years | |
| Total | 304,238 |
17.1.2Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiod
Unit:Yuan
| Type | Beginningbalance | Changesinthisperiod | Endingbalance | ||
| Accrued | Withdrawnortransferredback | Cancelled | |||
| Accountsreceivableforwhichprovisionforbaddebtsisaccruedbycreditriskfeatures | 601,610 | 599,632 | 1,978 | ||
| Total | 601,610 | 599,632 | 1,978 | ||
17.1.3Accountsreceivableactuallycancelledafterverificationinthisperiod
Nil
17.1.4Accountsreceivablecollectedbytheborroweroftop5unitsrankedbytheendingbalance
Unit:Yuan
| Unitname | Endingbalanceofaccountsreceivable | Proportionintotalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtreserves |
| ZhongyaMedicineandHealthCareWineCompany | 304,238 | 100% | 1,978 |
| Total | 304,238 | 100% |
17.1.5Accountsreceivablederecognizedduetotransferoffinancialassets
Nil
17.1.6AccountsreceivabletransferredandincludedinassetsandliabilitiesNil
17.2Otherreceivables
Unit:Yuan
Item
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 464,614 | 90,355 |
| Dividendsreceivable | 2,985,375 | 200,000,000 |
| Otherreceivables | 275,433,946 | 386,334,603 |
| Total | 278,883,935 | 586,424,958 |
17.2.1Interestreceivable
Unit:Yuan
| Item | Endingbalance | Beginningbalance |
| Fixeddeposit | 464,614 | 90,355 |
| Entrustedloan | ||
| Bondinvestment | ||
| Total | 464,614 | 90,355 |
17.2.2Dividendsreceivable
Unit:Yuan
| Item(ortheinvestedunit) | Endingbalance | Beginningbalance |
| Dividendsreceivablefromsubsidiaries | 2,985,375 | 200,000,000 |
| Total | 2,985,375 | 200,000,000 |
17.2.3Otherreceivables
1)Particularsofotherreceivablesclassifiedbynature
Unit:Yuan
| Nature | Endingbookbalance | Beginningbookbalance |
| Accountsreceivablefromsubsidiaries | 272,221,693 | 385,328,319 |
| Accountsreceivablefromrelatedparties | 2,359,130 | 813,440 |
| Other | 853,123 | 192,844 |
| Total | 275,433,946 | 386,334,603 |
2)Disclosedbyage
Unit:Yuan
| Age | Endingbalance |
Age
| Age | Endingbalance |
| Within1year(including1year) | 275,413,946 |
| 1-2years | |
| 2-3years | |
| Morethan3years | 20,000 |
| Total | 275,433,946 |
3)Provisionforbaddebtsaccrued,withdrawnortransferredbackinthisperiodTheprovisionforbaddebtsaccruedinthisperiodwasRMB0Yuan.
4)AccountsreceivableactuallycancelledafterverificationinthisperiodNil
5)Otheraccountsreceivablecollectedbytheborroweroftop5unitsrankedbytheendingbalance
Unit:Yuan
| Unit | Natureoffund | Endingbalance | Age | Percentageinthetotalendingbalanceofotheraccountsreceivable | Endingbalanceofprovisionforbaddebts |
| SalesCompany | Internalincomingsandoutgoings | 236,837,358 | Within1year | 86.0% | |
| R&DCompany | Internalincomingsandoutgoings | 19,536,550 | Within1year | 7.1% | |
| LongkouSales | Internalincomingsandoutgoings | 9,692,960 | Within1year | 3.5% | |
| GodHorsePackaging | Internalincomingsandoutgoings | 1,626,800 | Within1year | 0.6% | |
| GoldenIcewineValley | Internalincomingsandoutgoings | 774,832 | Within1year | 0.3% | |
| Total | -- | 268,468,500 | -- | 97.5% |
6)AccountsreceivablerelatedtogovernmentalsubsidyNil
7)OtheraccountsreceivablederecognizedduetotransferoffinancialassetsNil
8)OtheraccountsreceivabletransferredandincludedinassetsandliabilitiesNil
17.3Long-termequityinvestment
Unit:Yuan
Item
| Item | Endingbalance | Beginningbalance | ||||
| Bookbalance | Impairmentreserve | Bookvalue | Bookbalance | Impairmentreserve | Bookvalue | |
| Investmentinsubsidiaries | 7,437,422,621 | 7,437,422,621 | 7,432,422,621 | 7,432,422,621 | ||
| Investmentinassociatedenterprisesandjointventures | ||||||
| Total | 7,437,422,621 | 7,437,422,621 | 7,432,422,621 | 7,432,422,621 | ||
17.3.1Investmentinsubsidiaries
Unit:Yuan
| Investedunit | Beginningbalance(bookvalue) | Increaseanddecreaseinthisperiod | Endingbalance(bookvalue) | Endingbalanceofprovisionforimpairment | |||
| Increaseininvestment | Decreaseininvestment | Provisionforimpairmentaccrued | Others | ||||
| XinjiangTianzhu | 60,000,000 | 60,000,000 | |||||
| KylinPackaging | 23,176,063 | 23,176,063 | |||||
| ChangyuChateau | 28,968,100 | 28,968,100 | |||||
| PioneerInternational | 3,500,000 | 3,500,000 | |||||
| NingxiaGrowing | 36,573,247 | 36,573,247 | |||||
| NationalWine | 2,000,000 | 2,000,000 | |||||
| IcewineValley | 30,440,500 | 30,440,500 | |||||
| BeijingChateau | 588,389,444 | 588,389,444 | |||||
| SalesCompany | 7,200,000 | 7,200,000 | |||||
| LangfangSales | 100,000 | 100,000 | |||||
| LangfangCastel | 19,835,730 | 19,835,730 | |||||
| WineSales | 4,500,000 | 4,500,000 | |||||
| ShanghaiMarketing | 300,000 | 300,000 | |||||
| BeijingMarketing | 850,000 | 850,000 | |||||
| JingyangSales | 100,000 | 100,000 | |||||
| JingyangWine | 900,000 | 900,000 | |||||
| NingxiaWine | 222,309,388 | 222,309,388 | |||||
| NingxiaChateau | 453,463,500 | 453,463,500 | |||||
| ChateauTinlot | 212,039,586 | 212,039,586 | |||||
| ShiheziChateau | 812,019,770 | 812,019,770 | |||||
| Chang’anChateau | 803,892,258 | 803,892,258 | |||||
| Research,Development&ManufactureCompany | 3,288,906,445 | 3,288,906,445 | |||||
| HuanrenWine | 22,200,000 | 22,200,000 | |||||
| WineSalesCompany | 5,000,000 | 5,000,000 | |||||
Investedunit
| Investedunit | Beginningbalance(bookvalue) | Increaseanddecreaseinthisperiod | Endingbalance(bookvalue) | Endingbalanceofprovisionforimpairment | |||
| Increaseininvestment | Decreaseininvestment | Provisionforimpairmentaccrued | Others | ||||
| FrancsChamps | 236,025,404 | 236,025,404 | |||||
| MarquesdelAtrio | 190,150,544 | 190,150,544 | |||||
| IndomitaWine | 274,248,114 | 274,248,114 | |||||
| KilikanoonEstate,Australia | 110,334,528 | 110,334,528 | |||||
| Total | 7,432,422,621 | 5,000,000 | 7,437,422,621 | ||||
17.4Operatingincomeandoperatingcost
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusiness | 132,995,774 | 125,288,367 | 334,207,600 | 292,023,685 |
| Otherbusiness | 19,954,741 | 17,952,827 | 18,143,402 | 17,546,895 |
| Total | 152,950,515 | 143,241,194 | 352,351,002 | 309,570,580 |
17.5Investmentincome
Unit:Yuan
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Incomefromlong-termequityinvestmentbycostmethod | 87,474,604 | 264,221,755 |
| Incomefromlong-termequityinvestmentbyequitymethod | ||
| Investmentincomefromdisposaloflong-termequityinvestment | ||
| Investmentincomeofthefinancialassetsmeasuredattheirfairvaluesandthevariationofwhichisrecordedintothecurrentprofitsandlossesduringtheholdingperiod | ||
| Investmentincomegainedfromdisposalofthefinancialassetsmeasuredattheirfairvaluesandthevariationofwhichisrecordedintothecurrentprofitsandlosses | ||
| Investmentincomeofheld-to-maturityinvestmentduringtheholdingperiod | ||
| Investmentincomeoffinancialassetsheldforsaleduringtheholdingperiod | ||
| Investmentincomegainedfromdisposaloffinancialassetsheldforsale |
Item
| Item | Amountincurredinthisperiod | Amountincurredinpriorperiod |
| Gainsgeneratedfromtheremainingequityremeasuredasperfairvalueafterthelossofcontrol | ||
| Total | 87,474,604 | 264,221,755 |
18.Supplementarymaterials
18.1Listofnon-currentprofits/lossesinthisperiod
Unit:Yuan
| Item | Amount | Remark |
| Profits/lossesondisposalofnon-currentassets | 39,641 | |
| Taxreturn,deductionandexemptionapprovedbeyondtheauthorityorwithoutformalapprovaldocument | ||
| Governmentalsubsidyincludedinthecurrentprofits/losses(excludingthosecloselyrelatedtotheenterprisebusinessandenjoyedinaccordancewiththeunifiedstandardquotaorrationofthestate) | 49,780,231 | |
| Paymentforuseoffundsbynon-financialenterprisesincludedinthecurrentprofits/losses | ||
| Incomeobtainedwhentheinvestmentcostobtainedbytheenterprisefromsubsidiaries,joint-runbusinessandjointventureislessthanthefairvalueofthenetidentifiableassetsobtainedfromtheinvestedunitswhentheinvestmentismade | ||
| Profits/lossesonexchangeofnon-monetaryassets | ||
| Profits/lossesonentrustingotherpeopletomakeinvestmentormanageassets | ||
| Assetimpairmentprovisionaccruedduetoforcemajeuresuchasnaturaldisaster | ||
| Profits/lossesondebtrestructuring | ||
| Enterprisereorganizationexpensessuchasstaffingexpenditureandintegrationexpenses,etc. | ||
| Profits/lossesonthosebeyondthefairvaluegeneratedfromtransactionswithunfairtransactionprice | ||
| Currentnetprofits/lossesonsubsidiariesacquiredfromabusinesscombinationundercommoncontrolfromthebeginningtotheconsolidationdate |
Item
| Item | Amount | Remark |
| Profits/lossesoncontingenciesirrelatedtothenormalbusinessoftheCompany | ||
| Profits/lossesonchangesoffairvalueoftradablefinancialassets,derivativefinancialassets,tradablefinancialliabilitiesandderivativefinancialliabilities,andinvestmentincomefromdisposaloftradablefinancialassets,derivativefinancialassets,tradablefinancialliabilities,derivativefinancialliabilitiesandotherinvestmentincreditor'srights,excludingeffectivehedgingoperationsrelevanttothenormalbusinessoftheCompany | ||
| Transfer-backofaccountsreceivablewithsingleimpairmenttestandprovisionforimpairmentofcontractassets | ||
| Profits/lossesonexternalentrustedloans | ||
| Profits/lossesonfairvaluechangesofinvestmentrealestatewithfairvaluemodeforfollow-upmeasurement | ||
| Influenceoftheone-timeadjustmentofthecurrentprofits/lossesinaccordancewithtaxandaccountinglawsandregulationsonthecurrentprofits/losses | ||
| Trusteefeeincomefromentrustedoperation | ||
| Othernon-operatingincomeandexpenditurebesidestheaboveitems | 3,814,957 | |
| Otherprofits/lossesconformingtothedefinitionofnon-currentprofits/losses | ||
| Minus:Influencedamountofincometax | 13,221,932 | |
| Influencedamountofminorityshareholders’equity | 144,174 | |
| Total | 40,268,723 | -- |
18.2Returnonnetassetsandearningspershare
| Profitincurredinthisperiod | Weightedaveragereturnonnetassets | Earningspershare | |
| BasicEPS(Yuan/Share) | DilutedEPS(Yuan/Share) | ||
| NetprofitattributabletocommonshareholdersoftheCompany | 2.96% | 0.45 | 0.45 |
| NetprofitattributabletocommonshareholdersoftheCompanydeductingnon-incidentalprofits/losses | 2.57% | 0.39 | 0.39 |
18.3Accountingdatadifferenceunderdomesticandforeignaccountingstandard
18.3.1Netprofits&netassetsdifferencedisclosedinthefinancialreportaccordingtotheinternationalaccountingstandardandChineseaccountingstandard
Unit:Yuan
Netprofits
| Netprofits | Netassets | |||
| Amountincurredinthisperiod | Amountincurredinpriorperiod | Endingbalance | Beginningbalance | |
| InaccordancewiththeChineseaccountingstandard | 307,035,572 | 603,403,789 | 10,131,863,831 | 10,308,910,198 |
| Item&amountadjustedinaccordancewiththeinternationalaccountingstandard: | ||||
| Inaccordancewiththeinternationalaccountingstandard | 307,035,572 | 603,403,789 | 10,131,863,831 | 10,308,910,198 |
XII.ReferenceDocuments
(1)Theoriginalof2020Semi-annualReportautographedbythechairman.
(2)TheFinancialStatementsautographedandsignedbythechairman,chiefaccountantandaccountantsincharge.
(3)TheProspectusandPublicOfferingAnnouncementforStockBin1997;TheProspectusandTheShares’Change&PublicOfferingAnnouncementofStockAforStockAin2000.
(4)TheoriginalsofalldocumentsandannouncementsthattheCompanymadepublicduringthereportperiodinthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommission.
YantaiChangyuPioneerWineCo.,Ltd.
BoardofDirectorsAugust28
th,2020