Stock Code: 000869, 200869 Stock Abbreviation: Changyu A, Changyu B Announcement No.: Final 2022-01
Yantai Changyu Pioneer Wine Co., Ltd.
2021 Annual Report Abstract
1. Important Notice
This Annual Report Abstract comes from the whole contents of annual report. If investors desire tocomprehensively understand the Company’s operating results, financial situation and futuredevelopment plan, please read the Annual Report on the media specified by the China SecuritiesRegulatory Commission.
Except following directors, other directors have personally attended the meeting for deliberating theannual report.
| Name of director not personally attending the meeting | Position of director not personally attending the meeting | Reason of not personally attending the meeting | Name of entrustee |
| Aldino Marzorati | Director | Conflict with working hours | Zhou Hongjiang |
| Stefano Battioni | Director | Conflict with working hours | Leng Bin |
| Enrico Sivieri | Director | Conflict with working hours | Zhou Hongjiang |
Non-standard audit opinion notice?Available ?Not available
The preliminary scheme of the report period’s ordinary share profit distribution or increasing equitywith reserve deliberated by the board of the directors?Available ?Not available
Whether to increase equity with reserve?Yes ?No
The Company’s preliminary scheme of profit distribution deliberated and passed by the board ofdirectors this time is shown as following: Based on the Company’s total 685,464,000 shares, theCompany plans to pay CNY4.5 (including tax) in cash as dividends for every 10 shares to allshareholders and send 0 bonus share (including tax). Capital reserve will not be transferred to equity.
The draft plan of preferred share profit distribution during the report period deliberated and passedby the board of directors?Available ?Not available
2. Basic information of the Company
(1) Brief introduction of the Company
| Abbreviation of Shares | Changyu A, Changyu B | Code number of the Shares | 000869, 200869 | |
| Place of listing of Shares | Shenzhen Stock Exchange | |||
| Contact person and information | Secretary to the Board of Directors | Authorized Representative of the Securities Affairs | ||
| Name | Mr. Jiang Jianxun | Mr. Li Tingguo | ||
| Address | 56 Dama Road, Yantai, Shandong, China | 56 Dama Road, Yantai, Shandong, China | ||
| Fax | 0086-535-6633639 | 0086-535-6633639 | ||
| Tel | 0086-535-6602761 | 0086-535-6633656 | ||
| jiangjianxun@changyu.com.cn | stock@changyu.com.cn | |||
(2) Main businesses during the report period or brief introduction of products
1) Situation of the industry in which the Company operates
During the report period, the Company’s main businesses are production and operation of wine and brandy, thusproviding domestic and foreign consumers with healthy and fashionable alcoholic drinks. Compared with earlierstage, there are no significant changes happened to the Company’s main businesses. The wine industry that theCompany involved in is still in growth stage. Although being affected by many factors including the epidemic forthe short-term, the competition in the market is fierce, the wine consumption temporarily declines, and a largenumber of wine production enterprises are on the brink of loss. However, seen from the long term, with the changein the consumption conception of younger consumers, the whole domestic wine market is likely to be on the risingtrend. The Company is at the forefront in the domestic wine market and is significantly ahead of major domesticcompetitors.The Company’s products were divided into two series: wine and brandy. For wine, main brands included Changyu,Noble Dragon, AFIP, Longyu, Golden Ice Valley, Zenithwirl, Vermouth, Rena, Baron Balboa, J.LORMIN, Atrio,Kilikanoon and IWCC and so on. For Brandy, main brands included Koya, Mminni, Pagese, Roullet Fransac and soon.
2) License obtained
As of December 31
st, 2021, the Company and its subsidiaries have obtained 8 food production licenses (alcohol), ofwhich the food production licenses having been obtained since the beginning of 2020 are as follows:
| Producer name | Food category | Obtaining time | Obtaining method | Food production license number |
| Shaanxi Chateau Changyu Rena Co., Ltd. | Alcohol | 2020.10.19 | Approval from government authority | SC11561040400532 |
| Yantai Chateau Koya Brandy Co., Ltd. | Alcohol | 2021.01.11 | Approval from government authority | SC11537063601165 |
3) Major sales mode
The Company’s main sales mode was the distribution mode, and main sales channel was offline sales, that is, theCompany’s products were distributed to sales terminals through approximately 4,000 distributors at home andabroad and ultimately provided to consumers.Distribution mode?Available ?Not available
① Situation of change in the number of distributors
| Region | Number at the beginning of 2021 | Increased number during this report period | Number at the end of 2021 |
| Eastern China | 1702 | 155 | 1857 |
| South China | 541 | 24 | 565 |
| Central China | 479 | -3 | 476 |
| North China | 358 | 7 | 365 |
| Northwest China | 156 | 28 | 184 |
| Southwest China | 411 | 82 | 493 |
| Northeast China | 289 | 29 | 318 |
| HongKong, Macao,Taiwan China and overseas | 511 | 62 | 573 |
| Total | 4447 | 384 | 4831 |
② The Company adopted the settlement method of cash and carry with the distributors, and mainly adoptedbuyout distribution mode.The ratio of sales in self-owned exclusive shop exceeds 10%?Available ?Not available
③ Sales of online direct selling
?Available ?Not available
④ The change in sales prices of major products accounting for more than 10% of total operating income in currentreport period exceeds 30% compared with those in last report period?Available ?Not available
⑤ Procurement mode and procurement content
Unit：CNY’0000
| Procurement mode | Procurement content | The amount of the main procurement content |
| Price determined by quality comparison with standard price items | Raw materials such as grapes/ bulk wine | 49,125.70 |
| Tender/Price determined by quality comparison with standard price items | Packaging materials | 53,324.70 |
| Tender/Price determined by quality comparison with standard price items | Brewing materials | 2,262.50 |
| Tender/Price determined by quality comparison with standard price items | Vineyard supplies | 1,082.80 |
| Contract | Fuel and power | 2,945.50 |
| Price determined by quality comparison with standard price items | Other wines and derivatives | 1,651.80 |
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total procedure amount?Available ?Not availableThe year-on-year change in the price of major outsourced raw materials exceeds 30%?Available ?Not available
⑥ Major production mode
The production mode of the Company is self-produce.Manufacturing consignment?Available ?Not available
⑦ Major components of operating costs
| Sector | Project | 2021 | 2020 | Year-on-year increase or decrease (%) | ||
| Amount | Proportion in the operating cost (%) | Amount | Proportion in the operating cost (%) | |||
| Liquor and alcoholic | Blending liquor | 833,479,062 | 51.93% | 731,348,214 | 49.42% | 13.96% |
| Packing material | 477,555,065 | 29.76% | 457,572,889 | 30.92% | 4.37% | |
| Wages | 59,063,486 | 3.68% | 56,969,384 | 3.85% | 3.68% | |
Sales model
| Sales model | 2021 | 2020 | ||||
| Operating income (CNY) | Operating cost (CNY) | Gross margin | Operating income (CNY) | Operating cost (CNY) | Gross margin | |
Distribution
| Distribution | 3,263,303,800 | 1,349,422,481 | 58.65% | 2,945,453,550 | 1,289,537,264 | 56.22% |
Direct sales
| Direct sales | 689,763,784 | 298,367,393 | 56.74% | 449,948,451 | 214,340,143 | 52.36% |
Total
| Total | 3,953,067,583 | 1,647,789,874 | 58.32% | 3,395,402,001 | 1,503,877,407 | 55.71% |
| beverage | Manufacturing expenses | 234,857,160 | 14.63% | 234,032,840 | 15.81% | 0.35% |
| Wine | Blending liquor | 611,321,504 | 51.55% | 540,591,702 | 49.07% | 13.08% |
| Packing material | 328,926,668 | 27.74% | 326,909,741 | 29.67% | 0.62% | |
| Wages | 50,206,319 | 4.23% | 48,585,743 | 4.41% | 3.34% | |
| Manufacturing expenses | 195,416,595 | 16.48% | 185,657,867 | 16.85% | 5.26% | |
| Brandy | Blending liquor | 220,058,439 | 53.02% | 190,756,512 | 52.20% | 15.36% |
| Packing material | 147,425,674 | 35.52% | 130,663,148 | 35.76% | 12.83% | |
| Wages | 8,708,416 | 2.10% | 8,383,641 | 2.29% | 3.87% | |
| Manufacturing cost | 38,849,077 | 9.36% | 35,597,765 | 9.75% | 9.13% |
⑧ Yield and inventory
| Sector | Project | Unit | 2021 | 2020 | Year-on-year increase or decrease (%) |
| Alcohol and alcoholic beverage industry | Sales volume | Ton | 97,499 | 98,414 | -0.93% |
| Yield | Ton | 100,737 | 93,990 | 7.18% | |
| Inventory | Ton | 30,412 | 28,522 | 6.63% | |
| Wine | Sales volume | Ton | 67,700 | 70,662 | -4.19% |
| Yield | Ton | 67,342 | 67,477 | -0.20% | |
| Inventory | Ton | 16,104 | 15,898 | 1.30% | |
| Brandy | Sales volume | Ton | 29,799 | 27,752 | 7.38% |
| Yield | Ton | 33,394 | 26,513 | 25.95% | |
| Inventory | Ton | 14,308 | 12,624 | 13.34% |
⑨ Explanation for other major situation
During the report period, there did not exist the situation that had a significant impact on theCompany, such as trademark ownership disputes, food quality issue and food safety incidents and soon.
(3) Key accounting data and financial indicators
1) Key accounting data and financial indicators in recent three years
Whether the Company needs to retrospectively adjust or restate the accounting data of previous fiscalyears.
?Yes ?No
Unit: CNY
2) Key accounting data by quarter
Unit: CNY
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Operating revenue | 1,134,006,251 | 740,454,186 | 796,762,047 | 1,281,845,099 |
| Net profit attributed to shareholders of the listed company | 286,745,340 | 85,076,479 | 79,742,460 | 48,538,327 |
| Net profit attributed to shareholders of the listed company after deducting non-recurring profits and losses | 280,760,222 | 72,915,820 | 67,549,124 | 51,010,796 |
| Net cash flows from operating activities | 314,895,523 | 141,039,626 | 336,257,978 | 333,189,531 |
Whether there are significant differences between above-mentioned financial indicators or their sumand the related financial indicators in the quarterly report and semi-annual report disclosed by theCompany.?Yes ?No
| December 31, 2021 | December 31, 2020 | Increase/decrease compared with last year-end (%) | December 31, 2019 | |
| Total assets (CNY) | 13,472,009,754 | 13,102,481,541 | 2.82% | 13,647,932,568 |
| Net Assets attributed to shareholders of the listed company (CNY) | 10,447,884,183 | 10,267,832,644 | 1.75% | 10,308,910,198 |
| 2021 | 2020 | Increase/decrease compared with last year (%) | 2019 | |
| Operating revenue (CNY) | 3,953,067,583 | 3,395,402,001 | 16.42% | 5,074,025,899 |
| Net profit attributed to shareholders of the listed company (CNY) | 500,102,606 | 470,860,587 | 6.21% | 1,141,367,296 |
| Net profit attributed to shareholders of the listed company after deducting non-recurring profits and losses (CNY) | 472,235,962 | 397,655,187 | 18.76% | 892,496,644 |
| Net cash flows from operating activities (CNY) | 1,125,382,658 | 505,146,673 | 122.78% | 848,852,360 |
| Basic earnings per share (CNY) | 0.73 | 0.69 | 5.80% | 1.67 |
| Diluted earnings per share (CNY) | 0.73 | 0.69 | 5.80% | 1.67 |
| Weighted average for earning rate of net assets (CNY) | 4.84% | 4.57% | 0.27% | 11.40% |
(4) Capital stock and shareholders’ situation
1) Number of ordinary shareholder and preferred shareholder recovering voting power, and situation of shares held by top ten shareholders
Unit: share
| Total shareholders in the report period | 51,552 | Total number of shareholders by the end of last month before the disclosure day of the annual report | 50,528 | Total number of preferred shareholder recovering voting power by the end of report period | 0 | Total number of preferred shareholder recovering voting power by the end of last month before the disclosure day of the annual report | 0 | ||||||
| Situation of shares held by top ten shareholders | |||||||||||||
| Name of Shareholders | Character of shareholders | Percentage (%) | Amount of holding shares | Number of restricted shares | Pledged or frozen | ||||||||
| Share status | Amount | ||||||||||||
| YANTAI CHANGYU GROUP CO., LTD. | Domestic non-state legal person | 50.40% | 345,473,856 | - | - | ||||||||
| GAOLING FUND, L.P. | Foreign legal person | 3.08% | 21,090,219 | - | - | ||||||||
| BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | Foreign legal person | 1.33% | 9,140,216 | - | - | ||||||||
| SHENWAN HONGYUAN SECURITIES(HONGKONG) LIMITED | Foreign legal person | 1.08% | 7,413,952 | - | - | ||||||||
| FIDELITY PURITAN TRUST: FIDELITY SERIES INTRINSIC OPPORTUNITIES FUND | Foreign legal person | 0.93% | 6,350,762 | - | - | ||||||||
| Haitong International Securities Company Limited-Account Client | Foreign legal person | 0.74% | 5,060,702 | - | - | ||||||||
| GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED | Foreign legal person | 0.73% | 5,011,871 | - | - | ||||||||
| Fengdi JIANG | Domestic natural person | 0.71% | 4,854,000 | - | - | ||||||||
| China Merchants Futures (Hong Kong) Co., Limited | Foreign legal person | 0.67% | 4,589,660 | - | - | ||||||||
| VANGUARD EMERGING MARKETS STOCK | Foreign legal person | 0.61% | 4,170,863 | - | - | ||||||||
2) Number of preferred shareholder and situation of preferred shares held by top ten preferred shareholders?Available ?Not availableThere are no shares held by preferred shareholders during the report period.
| INDEX FUND | ||
| The explanation for the associated relationship and accordant action | Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action relationship with the other 9 listed shareholders, while the relationship among the other shareholders is unknown. | |
| Explanation for shareholders who involved in financing activities and stock trading business (if have) | The top 10 shareholders did not involve in financing activities and stock trade business. | |
3) Introduction for property right and control relations between the Company and its actual controllers
(5) Subsistent company bonds at the date when the annual report is approved to be disclosed
?Available ?Not available
3. Major issues
No
Yantai Changyu Pioneer Wine Co., Ltd.
Board of DirectorsApril 27, 2022