Financial Report
1. Audit report
Whether the semiannual report has been audited
□ Yes √ No
2. Financial statement
The unit in the statements of the financial annotations is RMB Yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2020 Unit: Yuan
Item | Note | June 30, 2020 | December 31, 2019 |
Current assets: | |||
Monetary fund | 7.1 | 1,476,207,055 | 1,565,783,980 |
Settlement reserves | |||
Lending funds | |||
Tradable financial assets | |||
Derivative financial assets | |||
Bills receivable | |||
Accounts receivable | 7.2 | 167,738,633 | 266,218,153 |
Receivables financing | 7.3 | 222,918,741 | 316,470,229 |
Advance payment | 7.4 | 10,200,527 | 67,707,537 |
Premium receivable | |||
Reinsurance accounts receivable | |||
Receivable reserves for reinsurance contract | |||
Other receivables | 7.5 | 25,594,801 | 24,246,812 |
Including: Interest receivable | 698,347 | 148,927 | |
Dividends receivable | |||
Redemptory monetary capital for sale | |||
Inventories | 7.6 | 2,936,133,260 | 2,872,410,407 |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | 7.7 | 262,917,721 | 267,424,938 |
Total current assets | 5,101,710,738 | 5,380,262,056 | |
Non-current assets: | |||
Offering loans and imprest | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 7.8 | 42,810,445 | 43,981,130 |
Item | Note | June 30, 2020 | December 31, 2019 |
Other investments in equity instruments | |||
Other non-current financial assets | |||
Investment real estate | 7.9 | 28,344,687 | 29,714,586 |
Fixed assets | 7.10 | 5,818,499,845 | 5,894,068,898 |
Construction in progress | 7.11 | 647,036,593 | 567,478,833 |
Productive biological assets | 7.12 | 196,238,591 | 202,425,286 |
Oil-and-gas assets | |||
Right-of-use assets | |||
Intangible assets | 7.13 | 641,220,580 | 651,946,355 |
Development expenditure | |||
Goodwill | 7.14 | 141,859,193 | 141,859,193 |
Long-term prepaid expenses | 7.15 | 270,769,497 | 277,595,408 |
Deferred income tax assets | 7.16 | 214,323,893 | 264,926,503 |
Other non-current assets | 7.17 | 184,158,436 | 193,674,320 |
Total non-current assets | 8,185,261,760 | 8,267,670,512 | |
Total assets | 13,286,972,498 | 13,647,932,568 | |
Current liabilities: | |||
Short-term loans | 7.18 | 737,183,701 | 754,313,744 |
Borrowings from the Central Bank | |||
Loans from other banks and other financial institutions | |||
Tradable financial liabilities | |||
Derivative financial liabilities | |||
Bills payable | |||
Accounts payable | 7.19 | 379,727,980 | 570,252,612 |
Advances from customers | 120,609,499 | ||
Contract liabilities | 7.20 | 100,523,260 | |
Financial assets sold for repurchase | |||
Deposits from customers and interbank | |||
Receivings from vicariously traded securities | |||
Receivings from vicariously sold securities | |||
Employee remunerations payable | 7.21 | 139,862,928 | 234,459,116 |
Taxes and dues payable | 7.22 | 154,572,275 | 375,169,971 |
Other payables | 7.23 | 793,033,613 | 450,532,485 |
Including: Interest payable | 2,167,287 | 758,047 | |
Dividends payable | 480,819,925 | 1,366,559 | |
Handling charges and commissions payable | |||
Dividend payable for reinsurance | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | 7.24 | 98,996,064 | 150,826,221 |
Other current liabilities | 13,068,024 | ||
Total current liabilities | 2,416,967,845 | 2,656,163,648 | |
Non-current liabilities: | |||
Reserves for insurance contracts | |||
Long-term borrowings | 7.25 | 218,613,336 | 128,892,501 |
Bonds payable |
Item | Note | June 30, 2020 | December 31, 2019 |
Including: Preferred stock | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term accounts payable | 7.26 | 167,000,000 | 191,000,000 |
Long-term employee remunerations payable | |||
Estimated liabilities | |||
Deferred income | 7.27 | 61,772,908 | 70,701,288 |
Deferred income tax liabilities | 7.16 | 14,303,137 | 14,691,424 |
Other non-current liabilities | 7.28 | 7,645,777 | 7,645,777 |
Total non-current liabilities | 469,335,158 | 412,930,990 | |
Total liabilities | 2,886,303,003 | 3,069,094,638 | |
Owner’s equity: | |||
Capital stock | 7.29 | 685,464,000 | 685,464,000 |
Other equity instruments | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Capital surplus | 7.30 | 565,050,422 | 565,050,422 |
Minus: Treasury stock | |||
Other comprehensive income | 7.31 | -9,242,236 | -4,235,583 |
Special reserves | |||
Surplus reserves | 7.32 | 342,732,000 | 342,732,000 |
General risk preparation | |||
Undistributed profit | 7.33 | 8,547,110,131 | 8,719,899,359 |
Total owner’s equities attributable to the parent company | 10,131,114,317 | 10,308,910,198 | |
Minority equity | 269,555,178 | 269,927,732 | |
Total owner’s equities | 10,400,669,495 | 10,578,837,930 | |
Total liabilities and owner’s equities | 13,286,972,498 | 13,647,932,568 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Note | June 30, 2020 | December 31, 2019 |
Current assets: | |||
Monetary fund | 798,084,475 | 710,505,269 | |
Tradable financial assets | |||
Derivative financial assets | |||
Bills receivable | |||
Accounts receivable | 17.1 | 302,260 | 1,988,326 |
Receivables financing | 34,212,039 | 41,679,635 | |
Advance payment | 33,862 | 776,539 | |
Other receivables | 17.2 | 278,883,935 | 586,424,958 |
Including: Interest receivable | 464,614 | 90,355 | |
Dividends receivable | 2,985,375 | 200,000,000 | |
Inventories | 501,196,687 | 434,007,808 |
Item | Note | June 30, 2020 | December 31, 2019 |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | 37,051,338 | 39,130,466 | |
Total current assets | 1,649,764,596 | 1,814,513,001 | |
Non-current assets: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 17.3 | 7,437,422,621 | 7,432,422,621 |
Other investments in equity instruments | |||
Other non-current financial assets | |||
Investment real estate | 28,920,958 | 29,714,586 | |
Fixed assets | 250,196,215 | 261,137,072 | |
Construction in progress | |||
Productive biological assets | 117,388,982 | 121,414,096 | |
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | 63,675,337 | 64,864,913 | |
Development expenditure | |||
Goodwill | |||
Long-term prepaid expenses | |||
Deferred income tax assets | 17,961,520 | 16,255,870 | |
Other non-current assets | 1,524,700,000 | 1,427,700,000 | |
Total non-current assets | 9,440,265,633 | 9,353,509,158 | |
Total assets | 11,090,030,229 | 11,168,022,159 | |
Current liabilities: | |||
Short-term loans | 150,000,000 | 150,000,000 | |
Tradable financial liabilities | |||
Derivative financial liabilities | |||
Bills payable | |||
Accounts payable | 32,575,693 | 63,655,240 | |
Advances from customers | |||
Contract liabilities | |||
Employee remunerations | 57,841,188 | 70,445,847 | |
Taxes and dues payable | 4,129,507 | 6,052,456 | |
Other payables | 1,038,359,009 | 660,149,563 | |
Including: Interest payable | 137,671 | 181,250 | |
Dividends payable | 479,824,800 | ||
Liabilities held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | |||
Total current liabilities | 1,282,905,397 | 950,303,106 | |
Non-current liabilities: | |||
Long-term borrowings |
Item | Note | June 30, 2020 | December 31, 2019 |
Bonds payable | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term accounts payable | |||
Long-term employee remuneration payable | |||
Estimated liabilities | |||
Deferred income | 7,459,789 | 9,176,315 | |
Deferred income tax liabilities | |||
Other non-current liabilities | 3,146,706 | 3,146,707 | |
Total non-current liabilities | 10,606,495 | 12,323,022 | |
Total liabilities | 1,293,511,892 | 962,626,128 | |
Owner’s equity: | |||
Capital stock | 685,464,000 | 685,464,000 | |
Other equity instruments | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Capital surplus | 557,222,454 | 557,222,454 | |
Minus: Treasury stock | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserves | 342,732,000 | 342,732,000 | |
Undistributed profit | 8,211,099,883 | 8,619,977,577 | |
Total owner’s equities | 9,796,518,337 | 10,205,396,031 | |
Total liabilities and owner’s equities | 11,090,030,229 | 11,168,022,159 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Note | Sum of current period | Sum of prior period |
1. Total operating income | 1,401,606,792 | 2,558,274,785 | |
Including: Operating income | 7.34 | 1,401,606,792 | 2,558,274,785 |
Interest income | |||
Earned premium | |||
Handling fee and commission income | |||
2. Total operating costs | 1,040,122,175 | 1,818,822,580 | |
Including: Operating costs | 7.34 | 574,650,677 | 936,252,225 |
Interest expenditure | |||
Handling fees and commission expenditure | |||
Premium rebate | |||
Net amount of indemnity expenditure | |||
Net amount of the withdrawn reserve fund for insurance contract | |||
Policy bonus payment |
Amortized reinsurance expenditures | |||
Item | Note | Sum of current period | Sum of prior period |
Taxes and surcharges | 7.35 | 88,103,493 | 123,550,848 |
Selling expenses | 7.36 | 250,531,046 | 591,970,801 |
Administrative expenses | 7.37 | 113,069,869 | 155,552,312 |
Research and development expenses | 7.38 | 1,805,988 | 2,706,811 |
Financial expenses | 7.39 | 11,961,102 | 8,789,583 |
Including: Interest expenses | 14,891,310 | 9,812,560 | |
Interest income | 6,088,281 | 4,606,417 | |
Plus: Other profit | 7.40 | 49,780,231 | 64,211,892 |
Investment profit (loss is listed with "-") | 7.41 | -1,170,685 | |
Including: Investment profit for joint-run business and joint venture | -1,170,685 | ||
Financial assets measured at amortized cost cease to be recognized as income (loss is listed with "-") | |||
Exchange income (loss is listed with "-") | |||
Net exposure hedge income (loss is listed with "-") | |||
Income from fair value changes (loss is listed with "-") | |||
Credit impairment loss (loss is listed with "-") | 7.42 | 100,835 | -765,935 |
Asset impairment loss (loss is listed with "-") | 7.43 | 4,242,813 | 6,148,729 |
Income from asset disposal (loss is listed with "-") | 7.44 | 39,641 | 1,138 |
3. Operating profit (loss is listed with "-") | 414,477,452 | 809,048,029 | |
Plus: Non-operating income | 7.45 | 4,682,230 | 3,575,914 |
Minus: Non-operating expenses | 7.46 | 867,273 | 164,050 |
4. Total profits (total loss is listed with "-") | 418,292,409 | 812,459,893 | |
Minus: Income tax expenses | 7.47 | 109,689,969 | 210,281,578 |
5. Net profit (net loss is listed with "-") | 308,602,440 | 602,178,315 | |
5.1 Classification by operation continuity | |||
5.1.1 Net profit from continuing operation (net loss is listed with "-") | 308,602,440 | 602,178,315 | |
5.1.2 Net profit from terminating operation (net loss is listed with "-") | |||
5.2 Classification by ownership | |||
5.2.1 Net profit attributable to owner of the parent company | 307,035,572 | 603,403,789 | |
5.2.2 Minority interest income | 1,566,868 | -1,225,474 | |
6. Net after-tax amount of other comprehensive income | 7.48 | -5,765,822 | -4,657,291 |
Net after-tax amount of other comprehensive income attributable to owner of the parent company | -5,006,653 | -3,060,721 | |
6.1 Other comprehensive income not to be reclassified into profit and loss later | |||
6.1.1 Changes after remeasuring and resetting the benefit plans | |||
6.1.2 Other comprehensive income not to be reclassified into profit and loss under equity law | |||
6.1.3 Changes in the fair value of other investments in equity instruments | |||
6.1.4 Changes in the fair value of the enterprise's own credit risk | |||
6.1.5 Other | |||
6.2 Other comprehensive income to be reclassified into profit and loss later | -5,006,653 | -3,060,721 |
6.2.1 Other comprehensive income to be reclassified into profit and loss under equity law | |||
6.2.2 Changes in the fair value of other debt investments | |||
6.2.3 Amount of financial assets reclassified into other comprehensive income | |||
6.2.4 Provision for credit impairment of other credit investments | |||
6.2.5 Provision for cash-flow hedge | |||
6.2.6 Difference in translation of Foreign Currency Financial Statement | -5,006,653 | -3,060,721 | |
6.2.7 Other | |||
Net after-tax amount of other comprehensive income attributable to minority shareholders | -759,169 | -1,596,570 | |
7. Total comprehensive income | 302,836,618 | 597,521,024 | |
Attributable to owner of the parent company | 302,028,919 | 600,343,068 | |
Attributable to minority shareholders | 807,699 | -2,822,044 | |
8. Earnings per share: | |||
8.1 Basic earnings per share | 0.45 | 0.88 | |
8.2 Diluted earnings per share | 0.45 | 0.88 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Note | Sum of current period | Sum of prior period |
1. Operating income | 17.4 | 152,950,515 | 352,351,002 |
Minus: Operating costs | 17.4 | 143,241,194 | 309,570,580 |
Taxes and surcharges | 4,379,365 | 13,140,156 | |
Selling expenses | |||
Administrative expenses | 30,150,311 | 39,434,246 | |
Research and development expenses | 318,917 | 405,061 | |
Financial expenses | 934,777 | -3,657,370 | |
Including: Interest expenses | 2,807,750 | -2,705,073 | |
Interest income | 2,251,235 | 1,470,667 | |
Plus: Other profit | 1,819,890 | 1,716,527 | |
Investment profit (loss is listed with "-") | 17.5 | 87,474,604 | 264,221,755 |
Including: Investment profit for joint-run business and joint venture | |||
Financial assets measured at amortized cost cease to be recognized as income (loss is listed with "-") | |||
Net exposure hedge income (loss is listed with "-") | |||
Income from fair value changes (loss is listed with "-") | |||
Credit impairment loss (loss is listed with "-") | 599,632 | ||
Asset impairment loss (loss is listed with "-") | |||
Income from asset disposal (loss is listed with "-") | |||
2. Operating profit (loss is listed with "-") | 63,820,077 | 259,396,611 | |
Plus: Non-operating income | 2,007,235 | 703,559 | |
Minus: Non-operating expenses | 525,000 | 97,638 |
3. Total profits (total loss is listed with "-") | 65,302,312 | 260,002,532 | |
Item | Note | Sum of current period | Sum of prior period |
Minus: Income tax expenses | -5,644,794 | -726,946 | |
4. Net profit (net loss is listed with "-") | 70,947,106 | 260,729,478 | |
4.1Net profit from continuing operation (net loss is listed with "-") | 70,947,106 | 260,729,478 | |
4.2 Net profit from terminating operation (net loss is listed with "-") | |||
5. Net after-tax amount of other comprehensive income | |||
5.1 Other comprehensive income not to be reclassified into profit and loss later | |||
5.1.1 Changes after remeasuring and resetting the benefit plans | |||
5.1.2 Other comprehensive income not to be reclassified into profit and loss under equity law | |||
5.1.3 Changes in the fair value of other investments in equity instruments | |||
5.1.4 Changes in the fair value of the enterprise's own credit risk | |||
5.1.5 Other | |||
5.2 Other comprehensive income to be reclassified into profit and loss later | |||
5.2.1 Other comprehensive income to be reclassified into profit and loss under equity law | |||
5.2.2 Changes in the fair value of other debt investments | |||
5.2.3 Amount of financial assets reclassified into other comprehensive income | |||
5.2.4 Provision for credit impairment of other credit investments | |||
5.2.5 Provision for cash-flow hedge | |||
5.2.6 Difference in translation of Foreign Currency Financial Statement | |||
5.2.7 Other | |||
6. Total comprehensive income | 70,947,106 | 260,729,478 | |
7. Earnings per share: | |||
7.1 Basic earnings per share | 0.10 | 0.38 | |
7.2 Diluted earnings per share | 0.10 | 0.38 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Note | Sum of current period | Sum of prior period |
1. Cash flows from operating activities: | |||
Cash received from sales of goods and rending of services | 1,488,831,127 | 2,399,548,448 | |
Net increase in customer and interbank deposits | |||
Net increase in borrowings from central bank | |||
Net increase in borrowings from other financial institutions | |||
Cash received from receiving insurance premium of original insurance contract | |||
Net cash received from reinsurance business | |||
Net increase in policy holder deposits and investment funds |
Item | Note | Sum of current period | Sum of prior period |
Cash received from collecting interest, handling fees and commissions | |||
Net increase in borrowing funds | |||
Net increase in repurchasement business funds | |||
Net cash received for buying and selling securities | |||
Tax refund received | 23,217,782 | 20,038,271 | |
Other cash received related to operating activities | 7.49 | 48,173,534 | 67,785,620 |
Subtotal of cash flows of operating activities | 1,560,222,443 | 2,487,372,339 | |
Cash paid for goods and services | 630,954,042 | 718,093,432 | |
Net increase in customer loans and advances | |||
Net increase in deposits in central bank and interbank deposits | |||
Cash paid to original insurance contract payments | |||
Net increase in lending funds | |||
Cash paid to interest, handling fees and commissions | |||
Cash paid to policy bonus | |||
Cash paid to and on behalf of employees | 231,967,796 | 278,638,333 | |
Cash paid for taxes and expenses | 467,810,691 | 598,384,101 | |
Other cash paid related to operating activities | 7.49 | 259,142,735 | 392,780,467 |
Sub-total of cash outflows of operating activities | 1,589,875,264 | 1,987,896,333 | |
Net cash flow from operating activities | -29,652,821 | 499,476,006 | |
2. Cash flow from investing activities: | |||
Cash received from disinvestment | |||
Cash received from withdrawal of fixed deposits | 60,128,600 | 104,597,650 | |
Cash received from obtaining investment income | |||
Cash received from obtaining interest income | 1,160,244 | 1,004,552 | |
Cash received from disposal of fixed assets, intangible assets and other long-term assets | 131,978 | 175,837 | |
Net cash received from disposal of branch and other business unit | |||
Other cash received related to investing activities | |||
Subtotal of cash flows of investment activities | 61,420,822 | 105,778,039 | |
Cash paid to acquire fixed assets, intangible assets and other long-term assets | 65,946,953 | 135,073,897 | |
Cash for investment | |||
Cash paid for purchasing fixed deposits | 35,200,000 | 85,238,750 | |
Net increase in hypothecated loan | |||
Net cash paid for acquiring branch and other business unit | |||
Other cash paid related to investment activities | |||
Subtotal of cash outflows of investment activities | 101,146,953 | 220,312,647 | |
Net cash flow from investing activities | -39,726,131 | -114,534,608 | |
3. Cash flow from financing activities | |||
Cash received from acquiring investment | |||
Including: cash received from acquiring minority shareholders investment by branch | |||
Cash received from acquiring loans | 778,228,305 | 656,495,139 | |
Other cash received related to financing activities | |||
Subtotal cash flows of financing activities | 778,228,305 | 656,495,139 | |
Cash paid for paying debts | 758,287,985 | 658,033,492 |
Item | Note | Sum of current period | Sum of prior period |
Cash paid for distributing dividend and profit or paying interest | 15,235,695 | 16,590,004 | |
Including: dividend and profit paid to minority shareholders by branch | 1,551,687 | ||
Other cash paid related to financing activities | |||
Subtotal of cash outflows of financing activities | 773,523,680 | 674,623,496 | |
Net cash flow from financing activities | 4,704,625 | -18,128,357 | |
4. Influences of exchange rate fluctuation on cash and cash equivalents | -307,959 | 53,702 | |
5. Net Increase in cash and cash equivalents | -64,982,286 | 366,866,743 | |
Plus: balance at the beginning of the period of cash and cash equivalents | 1,365,772,675 | 1,206,860,334 | |
6. Balance at the end of the period of cash and cash equivalents | 1,300,790,389 | 1,573,727,077 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.6 Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item | Sum of current period | Sum of prior period |
1. Cash flows from operating activities: | ||
Cash received from sales of goods and rending of services | 176,514,170 | 219,405,421 |
Tax refund received | ||
Other cash received related to operating activities | 14,486,373 | 57,674,830 |
Subtotal of cash flows of operating activities | 191,000,543 | 277,080,251 |
Cash paid for goods and services | 149,176,637 | 163,184,301 |
Cash paid to and on behalf of employees | 25,497,870 | 45,116,586 |
Cash paid for taxes and expenses | 2,648,464 | 22,530,113 |
Other cash paid related to operating activities | 107,931,895 | 321,847,893 |
Sub-total of cash outflows of operating activities | 285,254,866 | 552,678,893 |
Net cash flow from operating activities | -94,254,323 | -275,598,642 |
2. Cash flow from investing activities: | ||
Cash received from disinvestment | ||
Cash received from withdrawal of fixed deposits | 15,200,000 | 40,000,000 |
Cash received from obtaining investment income | 287,246,945 | 760,152,668 |
Cash received from obtaining interest income | 142,759 | 484,857 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 7,519 | |
Net cash received from disposal of branch and other business unit | ||
Other cash received related to investing activities | ||
Subtotal of cash flows of investment activities | 302,589,704 | 800,645,044 |
Cash paid to acquiring fixed assets, intangible assets and other long-term assets | 1,040,048 | 10,164,233 |
Cash for investment | 5,000,000 | 13,000,000 |
Cash paid for purchasing fixed deposits | 15,200,000 | 85,238,750 |
Net cash paid for acquiring branch and other business unit | ||
Other cash paid related to investment activities | 97,000,000 | |
Subtotal of cash outflows of investment activities | 118,240,048 | 108,402,983 |
Net cash flow from investing activities | 184,349,656 | 692,242,061 |
Item | Sum of current period | Sum of prior period |
3. Cash flow from financing activities | ||
Cash received from acquiring investment | ||
Cash received from acquiring loans | 150,000,000 | |
Other cash received related to financing activities | ||
Subtotal cash flows of financing activities | 150,000,000 | |
Cash paid for debts | 150,000,000 | |
Cash paid to distribute dividend, profit or pay interest | 2,748,375 | 3,248,000 |
Other cash paid related to financing activities | ||
Subtotal of cash outflows of financing activities | 152,748,375 | 3,248,000 |
Net cash flow from financing activities | -2,748,375 | -3,248,000 |
4. Influences of exchange rate fluctuation on cash and cash equivalents | ||
5. Net Increase in cash and cash equivalents | 87,346,958 | 413,395,419 |
Plus: balance at the beginning of the period of cash and cash equivalents | 623,116,542 | 532,384,882 |
6. Balance at the end of the period of cash and cash equivalents | 710,463,500 | 945,780,301 |
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.7 Consolidated owner’s equity changing list
Unit: Yuan
Item | This period | ||||||||||||||
Owners’ equity of the parent company | Minority shareholders’ equity | Total owners’ equity | |||||||||||||
Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk preparation | Undistributed profits | Other | Subtotal | |||||
Preferred stock | Perpetual bonds | Other | |||||||||||||
1. Balance at the end of last year | 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: Accounting policies changing | |||||||||||||||
Previous error correction | |||||||||||||||
Business combination under common control | |||||||||||||||
Other | |||||||||||||||
2. Balance at the beginning of this year | 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. Increased or decreased amount in this period (reducing amount is listed with "-") | -5,006,653 | -172,789,228 | -177,795,881 | -372,554 | -178,168,435 | ||||||||||
3.1 Total comprehensive income | -5,006,653 | 307,035,572 | 302,028,919 | 807,699 | 302,836,618 | ||||||||||
3.2 Owners' invested and reduced capital | |||||||||||||||
3.2.1 Owner’ invested common stock | |||||||||||||||
3.2.2 Other equity instrument holders’ invested capital | |||||||||||||||
3.2.3 Amount of shares paid and reckoned in |
owners' equity | |||||||||||||||
3.2.4 Other | |||||||||||||||
3.3 Profit distribution | -479,824,800 | -479,824,800 | -1,180,253 | -481,005,053 | |||||||||||
3.3.1 Accrued surplus reserves | |||||||||||||||
3.3.2 Accrued general risk preparation | |||||||||||||||
3.3.3 Distribution to owners (or shareholders) | -479,824,800 | -479,824,800 | -1,180,253 | -481,005,053 | |||||||||||
3.3.4 Other | |||||||||||||||
3.4 Internal transfer of owners' equity | |||||||||||||||
3.4.1 Capital reserves transferred and increased capital (or capital stock) | |||||||||||||||
3.4.2 Surplus reserves transferred and increased capital (or capital stock) | |||||||||||||||
3.4.3 Surplus reserves covering deficit | |||||||||||||||
3.4.4 Retained earnings carried over from the benefit plan variation | |||||||||||||||
3.4.5 Retained earnings carried over from other comprehensive income | |||||||||||||||
3.4.6 Other | |||||||||||||||
3.5 Special reserves | |||||||||||||||
3.5.1 Withdrawal in this period | |||||||||||||||
3.5.2 Usage in this period | |||||||||||||||
3.6 Other | |||||||||||||||
4. Balance at the end of this period | 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 | Last period | ||||||||||||||
Owners’ equity of the parent company | Minority shareholders’ equity | Total owners’ equity | |||||||||||||
Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk preparation | Undistributed profits | Other | Subtotal | |||||
Preferred stock | Perpetual bonds | Other | |||||||||||||
1. Balance at the end of last year | 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: Accounting policies changing | -7,540,537 | -7,540,537 | -7,540,537 | ||||||||||||
Previous error correction | |||||||||||||||
Business combination under common control | |||||||||||||||
Other | |||||||||||||||
2. Balance at the beginning of this year | 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. Increased or decreased amount in this period (reducing amount is listed with "-") | -905,019 | -7,200,960 | 718,457,349 | 710,351,370 | -14,460,280 | 695,891,090 | |||||||||
3.1 Total comprehensive income | -7,200,960 | 1,129,735,749 | 1,122,534,789 | -1,368,953 | 1,121,165,836 | ||||||||||
3.2 Owners' invested and reduced capital | -905,019 | -905,019 | -10,714,533 | -11,619,552 | |||||||||||
3.2.1 Owner’ invested common stock | -905,019 | -905,019 | -10,714,533 | -11,619,552 | |||||||||||
3.2.2 Other equity instrument holders’ invested capital | |||||||||||||||
3.2.3 Amount of shares paid and reckoned in owners' equity | |||||||||||||||
3.2.4 Other |
3.3 Profit distribution | -411,278,400 | -411,278,400 | -2,376,794 | -413,655,194 | |||||||||||
3.3.1 Accrued surplus reserves | |||||||||||||||
3.3.2 Accrued general risk preparation | |||||||||||||||
3.3.3 Distribution to owners (or shareholders) | -411,278,400 | -411,278,400 | -2,376,794 | -413,655,194 | |||||||||||
3.3.4 Other | |||||||||||||||
3.4 Internal transfer of owners' equity | |||||||||||||||
3.4.1 Capital reserves transferred and increased capital (or capital stock) | |||||||||||||||
3.4.2 Surplus reserves transferred and increased capital (or capital stock) | |||||||||||||||
3.4.3 Surplus reserves covering deficit | |||||||||||||||
3.4.4 Retained earnings carried over from the benefit plan amount | |||||||||||||||
3.4.5 Retained earnings carried over from other comprehensive income | |||||||||||||||
3.4.6 Other | |||||||||||||||
3.5 Special reserves | |||||||||||||||
3.5.1 Withdrawal in this period | |||||||||||||||
3.5.2 Usage in this period | |||||||||||||||
3.6 Other | |||||||||||||||
4. Balance at the end of this period | 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 |
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
Item | This period | |||||||||||
Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Other | Total owners’ equity | |||
Preferred stock | Perpetual bonds | Other | ||||||||||
1. Balance at the end of last year | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 | |||||||
Plus: Accounting policies changing | ||||||||||||
Previous error correction | ||||||||||||
Other | ||||||||||||
2. Balance at the beginning of this year | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 | |||||||
3. Increased or decreased amount in this period (reducing amount is listed with "-") | -408,877,694 | -408,877,694 | ||||||||||
3.1 Total comprehensive income | 70,947,106 | 70,947,106 | ||||||||||
3.2 Owners' invested and reduced capital | ||||||||||||
3.2.1 Owners’ invested common stock | ||||||||||||
3.2.2 Other equity instrument holder’ invested capital | ||||||||||||
3.2.3 Amount of shares paid and reckoned in owners' equity | ||||||||||||
3.2.4 Other | ||||||||||||
3.3 Profit distribution | -479,824,800 | -479,824,800 | ||||||||||
3.3.1 Drew surplus reserves | ||||||||||||
3.3.2 Distribution to owners (or shareholders) | -479,824,800 | -479,824,800 | ||||||||||
3.3.3 Other | ||||||||||||
3.4 Internal transfer of owners' equity | ||||||||||||
3.4.1 Capital reserves transferred and increased capital (or capital stock) | ||||||||||||
3.4.2 Surplus reserves transferred and increased capital (or capital stock) |
3.4.3 Surplus reserves covering deficit | ||||||||||||
3.4.4 Retained earnings carried over from the benefit plan amount | ||||||||||||
3.4.5 Retained earnings carried over from other comprehensive income | ||||||||||||
3.4.6 Other | ||||||||||||
3.5 Special reserves | ||||||||||||
3.5.1 Accrual in this period | ||||||||||||
3.5.2 Usage in this period | ||||||||||||
3.6 Other | ||||||||||||
4. Balance at the end of this period | 685,464,000 | 557,222,454 | 342,732,000 | 8,211,099,883 | 9,796,518,337 |
Unit: Yuan
Item | Last period | |||||||||||
Capital stock | Other equity instruments | Capital reserves | Minus: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Other | Total owners’ equity | |||
Preferred stock | Perpetual bonds | Other | ||||||||||
1. Balance at the end of last year | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 | |||||||
Plus: Accounting policies changing | ||||||||||||
Previous error correction | ||||||||||||
Other | ||||||||||||
2. Balance at the beginning of this year | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 | |||||||
3. Increased or decreased amount in this period (reducing amount is listed with "-") | 182,020,449 | 182,020,449 | ||||||||||
3.1 Total comprehensive income | 593,298,849 | 593,298,849 | ||||||||||
3.2 Owners' invested and reduced capital | ||||||||||||
3.2.1 Owners’ invested common stock | ||||||||||||
3.2.2 Other equity instrument holder’ invested capital | ||||||||||||
3.2.3 Amount of shares paid and reckoned in owners' equity |
3.2.4 Other | ||||||||||||
3.3 Profit distribution | -411,278,400 | -411,278,400 | ||||||||||
3.3.1 Drew surplus reserves | ||||||||||||
3.3.2 Distribution to owners (or shareholders) | -411,278,400 | -411,278,400 | ||||||||||
3.3.3 Other | ||||||||||||
3.4 Internal transfer of owners' equity | ||||||||||||
3.4.1 Capital reserves transferred and increased capital (or capital stock) | ||||||||||||
3.4.2 Surplus reserves transferred and increased capital (or capital stock) | ||||||||||||
3.4.3 Surplus reserves covering deficit | ||||||||||||
3.4.4 Retained earnings carried over from the benefit plan amount | ||||||||||||
3.4.5 Retained earnings carried over from other comprehensive income | ||||||||||||
3.4.6 Other | ||||||||||||
3.5 Special reserves | ||||||||||||
3.5.1 Accrual in this period | ||||||||||||
3.5.2 Usage in this period | ||||||||||||
3.6 Other | ||||||||||||
4. Balance at the end of this period | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 |
3. Company profile
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company” or the “Joint-stock Company”) wasincorporated as a joint-stock limited company in accordance with the Company Law of the People’sRepublic of China (the “PRC”) in the merger and reorganization carried out by Yantai Changyu GroupCo., Ltd. (“Changyu Group Company”) with its assets and liabilities in relation to wine business. TheCompany and its subsidiary companies (hereinafter collectively referred to as the “Group”) areengaged in the production and sale of wine, brandy and champagne, planting and purchase of grapes,development of tourism resources, etc. The registered address of the Company is Yantai City,Shandong Province, and the office address of the headquarters is 56 Dama Road, Zhifu District, YantaiCity, Shandong Province.
As at June 30, 2020, the Company issued 685,464,000 shares accumulatively. Refer to Note 7.29 fordetails.
The parent company of the Group is Changyu Group Company incorporated in China, which wasultimately and actually controlled by four parties, including Yantai Guofeng Investment Holding Co.,Ltd., ILLVA Saronno Holding Spa, International Finance Corporation and Yantai Yuhua Investment &Development Co., Ltd.
The financial statement and the consolidated financial statement of the Company were approved bythe Board of Directors on August 26, 2020.
The details of scope of the consolidated financial statement in this period can be seen in Note 9“Equity in other entities”. The details of scope changes of the consolidated financial statement in thisperiod can be seen in Note 8 “Changes of the consolidated scope”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Group implements the Accounting Standards for Business Enterprises (including the new andrevised editions published in 2014) (“ASBE”) published by the Ministry of Finance and relevant
regulations thereof.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30, 2020, and noissues or situations causing major doubts to this ability are found. Therefore, this financial statement isprepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of ASBE issued by the Ministry of Finance and givesa true and integrated view of the consolidated financial status and the financial status as at June 30,2020, as well as the consolidated operating result, the operating result, the consolidated cash flow andthe cash flow of the Company from January to June 2020.
In addition, the financial statement of the Company also complies with the related disclosurerequirements for statement and its notes stipulated by Preparation Rules for Information Disclosure byCompanies Offering Securities to the Public No. 15 – General Provisions on Financial Reports (2014Revision) by the China Securities Regulatory Commission (hereinafter referred to as the “CSRC”).
5.2 Accounting period
The accounting year is from January 1 to December 31 in Gregorian calendar.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for processing tothe cash or cash equivalent is realized. The operating cycle of the Company is 12 months.
5.4 Recording currency
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.Since Renminbi (RMB) is the currency of the main economic environment in which the Company andthe domestic subsidiary companies thereof are situated, the Company and the subsidiary companiesthereof adopt RMB as the recording currency. The overseas subsidiary companies thereof determineEUR, CLP and AUD as the recording currency according to the main economic environment in whichthey are situated. The currency in this financial statement prepared by the Group is RMB.
5.5 Accounting treatment method for business combination under common control andnon-common control
5.5.1 Business combination and goodwill under common control
A business combination under common control is a business combination in which all of thecombining enterprises are ultimately controlled by the same party or same multiple parties before andafter the combination, and that control is not transitory. The assets and liabilities obtained by thecombining party in the business combination shall be measured on the basis of the carrying amount inthe ultimate controlling party's consolidated financial statement as at the combination date. Wherethere is a difference between the carrying amount of the net assets acquired and the carrying amount ofthe combination consideration paid (or the total par value of the shares issued), the stock premium incapital surplus shall be adjusted. If the stock premium in capital surplus is not sufficient to offset, theretained earnings shall be adjusted. The direct related expenses incurred for the business combinationshall be included in the current profit and loss when incurred. The combination date is the date onwhich the combining party actually obtains control of the combined party.
5.5.2 Business combination under non-common control
A business combination under non-common control is a business combination in which all of thecombining parties are not ultimately controlled by the same party or same multiple parties before andafter the combination. The sum of fair values of the assets paid by the Group, as the acquirer,(including the acquiree’s equity the Group held before the acquisition date), liabilities incurred orassumed, and the equity securities issued on the acquisition date in exchange for the control over theacquiree, deducts the fair value of the acquiree’s identifiable net assets acquired in the combination onthe acquisition date. If the difference is positive, it shall be recognized as goodwill; and if it is negative,it shall be included in the current profit and loss.
All the identifiable assets, liabilities and contingentliabilities which are obtained from the acquiree and meet the recognition conditions shall be confirmedby the Group on the acquisition date according to the fair value thereof.
The acquisition date is the
date on which the acquirer actually obtains control of the acquiree.
For a business combination involving entities not under common control and achieved in stages, theGroup remeasures its previously-held equity interest in the acquiree to its acquisition-date fair valueand recognises any resulting difference between the fair value and the carrying amount as investmentincome or other comprehensive income for the current period. In addition, any amount recognised inother comprehensive income that may be reclassified to profit or loss, in prior reporting periodsrelating to the previously-held equity interest, and any other changes in the owners’ equity underequity accounting, are transferred to investment income in the period in which the acquisition occurs.If equity interests of the acquiree held before acquisition-date were equity instrument investmentsmeasured at fair value through other comprehensive income, other comprehensive income recognisedshall be moved to retained earnings on acquisition-date.
5.6 Compiling methods of consolidated financial statement
5.6.1 General principles
The scope of consolidated financial statements is based on control and the consolidated financialstatements comprise the Company and its subsidiaries. Control exists when the investor has all offollowing: power over the investee; exposure, or rights, to variable returns from its involvement withthe investee and has the ability to affect those returns through its power over the investee. Whenassessing whether the Group has power, only substantive rights (held by the Group and other parties)are considered. The financial position, financial performance and cash flows of subsidiaries areincluded in the consolidated financial statements from the date that control commences until the datethat control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet withinshareholders’ equity. Net profit or loss attributable to non-controlling shareholders is presentedseparately in the consolidated income statement below the net profit line item. Total comprehensiveincome attributable to non-controlling shareholders is presented separately in the consolidated incomestatement below the total comprehensive income line item.
When the amount of loss for the current period attributable to the non-controlling shareholders of asubsidiary exceeds the non-controlling shareholders’ share of the opening owners’ equity of thesubsidiary, the excess is still allocated against the non-controlling interests.
When the accounting period or accounting policies of a subsidiary are different from those of theCompany, the Company makes necessary adjustments to the financial statements of the subsidiarybased on the Company’s own accounting period or accounting policies. Intra-group balances andtransactions, and any unrealised profit or loss arising from intra-group transactions, are eliminatedwhen preparing the consolidated financial statements. Unrealised losses resulting from intra-grouptransactions are eliminated in the same way as unrealised gains, unless they represent impairmentlosses that are recognised in the financial statements.
5.6.2 Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business combinationinvolving entities under common control, the financial statements of the subsidiary are included in theconsolidated financial statements based on the carrying amounts of the assets and liabilities of thesubsidiary in the financial statements of the ultimate controlling party as if the combination hadoccurred at the date that the ultimate controlling party first obtained control. The opening balances andthe comparative figures of the consolidated financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business combinationinvolving entities not under common control, the identifiable assets and liabilities of the acquiredsubsidiaries are included in the scope of consolidation from the date that control commences, based onthe fair value of those identifiable assets and liabilities at the acquisition date.
5.6.3 Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses are recognisedas investment income for the current period. The remaining equity investment is re-measured at its fairvalue at the date when control is lost, any resulting gains or losses are also recognised as investmentincome for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes of itslong-term equity investment in the subsidiary in stages, the following are considered to determinewhether the Group should account for the multiple transactions as a bundled transaction:
- arrangements are entered into at the same time or in contemplation of each other;
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.- arrangements work together to achieve an overall commercial effect;- the occurrence of one arrangement is dependent on the occurrence of at least one otherarrangement;- one arrangement considered on its own is not economically justified, but it is economicallyjustified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the transactionsconducted before the loss of control of the subsidiary are accounted for in accordance with theaccounting policy for partial disposal of equity investment in subsidiaries where control is retained.
If each of the multiple transactions forms part of a bundled transaction which eventually results in theloss of control in the subsidiary, these multiple transactions are accounted for as a single transaction.In the consolidated financial statements, the difference between the consideration received and thecorresponding proportion of the subsidiary’s net assets (calculated continuously from the acquisitiondate) in each transaction prior to the loss of control shall be recognised in other comprehensive incomeand transferred to profit or loss when the parent eventually loses control of the subsidiary.
5.6.4 Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controllingshareholders or disposes of a portion of an interest in a subsidiary without a change in control, thedifference between the proportion interests of the subsidiary’s net assets being acquired or disposedand the amount of the consideration paid or received is adjusted to the capital reserve (share premium)in the consolidated balance sheet, with any excess adjusted to retained earnings.
5.7 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposit, and short-term highly liquidinvestments which are readily convertible into known amount of cash with an insignificant risk ofchanges in value.
5.8 Foreign currency transaction and foreign currency statement translation
When the Group receives capital in foreign currencies from investors, the capital is translated to
Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency transactions are,on initial recognition, translated to Renminbi at the spot exchange rates.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rateat the balance sheet date. The resulting exchange differences are generally recognised in profit or loss,unless they arise from the re-translation of the principal and interest of specific borrowings for theacquisition and construction of qualifying assets. Non-monetary items that are measured at historicalcost in foreign currencies are translated to Renminbi using the exchange rate at the transaction date.
In translating the financial statements of a foreign operation, assets and liabilities of foreign operationare translated to Renminbi at the spot exchange rate at the balance sheet date. Equity items, excludingretained earnings and the translation differences in other comprehensive income, are translated toRenminbi at the spot exchange rates at the transaction dates. Income and expenses in the incomestatement are translated to Renminbi at the spot exchange rates at the transaction dates. The resultingtranslation differences are recognised in other comprehensive income. The translation differencesaccumulated in other comprehensive income with respect to a foreign operation are transferred toprofit or loss in the period when the foreign operation is disposed.
5.9 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equity securities otherthan those classified as long-term equity investments, receivables, payables, loans and borrowings andshare capital.
5.9.1 Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognised in the balance sheet when the Group becomes aparty to the contractual provisions of a financial instrument.
A financial assets (unless it is a trade receivable without a significant financing component) andfinancial liabilities is measured initially at fair value. For financial assets and financial liabilities at fairvalue through profit or loss, any related directly attributable transaction costs are charged to profit orloss; for other categories of financial assets and financial liabilities, any related directly attributabletransaction costs are included in their initial costs. Accounts receivable containing no significantfinancing component are measured initially at transaction prices determined by the accounting policies
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.set out in Note 5.22.
5.9.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which a financialasset is managed and its contractual cash flow characteristics. On initial recognition, a financial assetis classified as measured at amortised cost, at fair value through other comprehensive income(“FVOCI”), or at fair value through profit or loss (“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes itsbusiness model for managing financial assets in which case all affected financial assets are reclassifiedon the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is notdesignated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cashflows; and- its contractual terms give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is notdesignated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cashflows and selling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocablyelect to present subsequent changes in the investment’s fair value in other comprehensive income. Thiselection is made on an investment-by-investment basis. The instrument meets the definition of equity
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.from the perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI as described above aremeasured at FVTPL. On initial recognition, the Group may irrevocably designate a financial asset thatotherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doingso eliminates or significantly reduces an accounting mismatch that would otherwise arise.
The business model refers to how the Group manages its financial assets in order to generate cashflows. That is, the Group’s business model determines whether cash flows will result from collectingcontractual cash flows, selling financial assets or both. The Group determines the business model formanaging the financial assets according to the facts and based on the specific business objective formanaging the financial assets determined by the Group’s key management personnel.
In assessing whether the contractual cash flows are solely payments of principal and interest, theGroup considers the contractual terms of the instrument. For the purposes of this assessment,‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is definedas consideration for the time value of money and for the credit risk associated with the principalamount outstanding during a particular period of time and for other basic lending risks and costs, aswell as a profit margin. The Group also assesses whether the financial asset contains a contractual termthat could change the timing or amount of contractual cash flows such that it would not meet thiscondition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses, including anyinterest or dividend income, are recognised in profit or loss unless the financial assets are part of ahedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method. A gainor loss on a financial asset that is measured at amortised cost and is not part of a hedging relationshipshall be recognised in profit or loss when the financial asset is derecognised, through the amortisation
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.process or in order to recognise impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effectiveinterest method, impairment and foreign exchange gains and losses are recognised in profit or loss.Other net gains and losses are recognised in other comprehensive income. On derecognition, gains andlosses accumulated in other comprehensive income are reclassified to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in profit orloss. Other net gains and losses are recognised in other comprehensive income. On derecognition,gains and losses accumulated in other comprehensive income are reclassified to retained earnings.
5.9.3 Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost by the Group.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including derivativefinancial liability) or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains and losses,including any interest expense, are recognised in profit or loss, unless the financial liabilities are partof a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective interestmethod.
5.9.4 Offsetting
Financial assets and financial liabilities are generally presented separately in the balance sheet, and arenot offset. However, a financial asset and a financial liability are offset and the net amount is presentedin the balance sheet when both of the following conditions are satisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts;
- The Group intends either to settle on a net basis, or to realise the financial asset and settle thefinancial liability simultaneously.
5.9.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of the risks andrewards of ownership of the financial asset; or;
- the financial asset has been transferred, although the Group neither transfers nor retainssubstantially all of the risks and rewards of ownership of the financial asset, it does not retain controlover the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the differencebetween the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of derecognition;- the sum of the consideration received from the transfer and, when the transferred financial asset isa debt investment at FVOCI, any cumulative gain or loss that has been recognised directly in othercomprehensive income for the part derecognised.
The Group derecognises a financial liability (or part of it) only when its contractual obligation (or partof it) is extinguished.
5.9.6 Impairment
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;- financial investments at fair value through other comprehensive income
Financial assets measured at fair value, including debt investments or equity securities at FVPL, equitysecurities designated at FVOCI and derivative financial assets, are not subject to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the presentvalue of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordancewith the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period (includingextension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of afinancial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12months after the balance sheet date (or a shorter period if the expected life of the instrument is lessthan 12 months).
For accounts receivable, loss allowance always measured at an amount equal to lifetime ECLs. ECLson these financial assets are estimated using a provision matrix based on the Group’s historical creditloss experience, adjusted for factors that are specific to the debtors and an assessment of both thecurrent and forecast general economic conditions at the balance sheet date.
For assets other than accounts receivable that meet one of the following conditions, loss allowance aremeasured at an amount equal to 12-month ECLs. For all other financial instruments, the Grouprecognises a loss allowance equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.- If the credit risk on a financial instrument has not increased significantly since initial recognition.
Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a low risk ofdefault, the borrower has a strong capacity to meet its contractual cash flow obligations in the nearterm and adverse changes in economic and business conditions in the longer term may, but will notnecessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since initialrecognition, the Group compares the risk of default occurring on the financial instrument assessed atthe balance sheet date with that assessed at the date of initial recognition.
When determining whether the credit risk of a financial asset has increased significantly since initialrecognition and when estimating ECL, the Group considers reasonable and supportable informationthat is relevant and available without undue cost or effort, including forward-looking information. Inparticular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;- an actual or expected significant deterioration in a financial instrument’s external or internalcredit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor; and- existing or forecast changes in the technological, market, economic or legal environment thathave a significant adverse effect on the debtor’s ability to meet its obligation to the Group.
Depending on the nature of the financial instruments, the assessment of a significant increase in creditrisk is performed on either an individual basis or a collective basis. When the assessment is performedon a collective basis, the financial instruments are grouped based on shared credit risk characteristics,such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than30 days past due.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried at amortised cost anddebt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one ormore events that have a detrimental impact on the estimated future cash flows of the financial assethave occurred. Evidence that a financial asset is credit-impaired includes the following observabledata:
- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, the Grouphaving granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or- the disappearance of an active market for that financial asset because of financial difficulties.
Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial instrument’s creditrisk since initial recognition. Any change in the ECL amount is recognised as an impairment gain orloss in profit or loss. The Group recognises an impairment gain or loss for all financial instrumentswith a corresponding adjustment to their carrying amount through a loss allowance account, except fordebt investments that are measured at FVOCI, for which the loss allowance is recognised in othercomprehensive income.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extentthat there is no realistic prospect of recovery. A write-off constitutes a derecognition event. This isgenerally the case when the Group determines that the debtor does not have assets or sources ofincome that could generate sufficient cash flows to repay the amounts subject to the write-off.However, financial assets that are written off could still be subject to enforcement activities in order tocomply with the Group’s procedures for recovery of amounts due.
Subsequent recoveries of an asset that was previously written off are recognised as a reversal ofimpairment in profit or loss in the period in which the recovery occurs.
5.9.7 Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs isrecognised in shareholders’ equity. Consideration and transaction costs paid by the Company forrepurchasing self-issued equity instruments are deducted from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasury shares. Allexpenditure relating to the repurchase is recorded in the cost of the treasury shares, with thetransaction recording in the share register. Treasury shares are excluded from profit distributions andare presented as a deduction under shareholders’ equity in the balance sheet.
5.10 Inventories
5.10.1 Classification and cost
Inventories include raw materials, work in progress and reusable materials. Inventories are initiallymeasured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and otherexpenditure incurred in bringing the inventories to their present location and condition. In addition tothe purchase cost of raw materials, work in progress and finished goods include direct labour costs andan appropriate allocation of production overheads.
Agricultural products harvested are reported in accordance with the CAS No.1 - Inventories.
5.10.2 Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are amortised when they areused. The amortisation charge is included in the cost of the related assets or recognised in profit or lossfor the current period.
5.10.3 Basis for determining the net realisable value and method for provision for
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimatedcosts of completion and the estimated costs necessary to make the sale and relevant taxes. The netrealisable value of materials held for use in the production is measured based on the net realisablevalue of the finished goods in which they will be incorporated. The net realisable value of theinventory held to satisfy sales or service contracts is measured based on the contract price, to theextent of the quantities specified in sales contracts, and the excess portion of inventories is measuredbased on general selling prices.
Any excess of the cost over the net realisable value of each item of inventories is recognised as aprovision for impairment, and is recognised in profit or loss.
5.10.4 Inventory count system
The Group maintains a perpetual inventory system.
5.11 Long-term equity investments
5.11.1 Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combinationinvolving entities under common control is the Company’s share of the carrying amount of thesubsidiary’s equity in the consolidated financial statements of the ultimate controlling party at thecombination date. The difference between the initial investment cost and the carrying amount of theconsideration given is adjusted to the share premium in the capital reserve, with any excess adjusted toretained earnings. For a long-term equity investment in a subsidiary acquired through a businesscombination achieved in stages which do not form a bundled transaction and involving entities undercommon control, the Company determines the initial cost of the investment in accordance with theabove policies. The difference between this initial cost and the sum of the carrying amount of
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.previously-held investment and the consideration paid for the shares newly acquired is adjusted tocapital premium in the capital reserve, with any excess adjusted to retained earnings.- For a long-term equity investment obtained through a business combination not involvingenterprises under common control, the initial cost comprises the aggregate of the fair value of assetstransferred, liabilities incurred or assumed, and equity securities issued by the Company, in exchangefor control of the acquiree. For a long-term equity investment obtained through a businesscombination not involving entities under common control and achieved through multiple transactionsin stages which do not form a bundled transaction, the initial cost comprises the carrying amount ofthe previously-held equity investment in the acquiree immediately before the acquisition date, and theadditional investment cost at the acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is initiallyrecognised at the amount of cash paid if the Group acquires the investment by cash, or at the fair valueof the equity securities issued if an investment is acquired by issuing equity securities.
5.11.2 Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in subsidiaries areaccounted for using the cost method unless the investment is classified as held for sale. Except forcash dividends or profit distributions declared but not yet distributed that have been included in theprice or consideration paid in obtaining the investments, the Company recognises its share of the cashdividends or profit distributions declared by the investee as investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less accumulated impairmentlosses.
For the impairment of the investments in subsidiaries, refer to Note 5.20.
In the Group’s consolidated financial statements, subsidiaries are accounted for in accordance with thepolicies described in Note 5.6.
(b) Investments in joint ventures
A joint venture is an arrangement whereby the Group and other parties have joint control and rights tothe net assets of the arrangement.
A long-term equity investment in a joint venture is accounted for using the equity method forsubsequent measurement, unless the investment is classified as held for sale.
The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest in the fairvalue of the investee’s identifiable net assets at the date of acquisition, the investment is initiallyrecognised at cost. Where the initial investment cost is less than the Group’s interest in the fair valueof the investee’s identifiable net assets at the date of acquisition, the investment is initially recognisedat the investor’s share of the fair value of the investee’s identifiable net assets, and the difference isrecognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of the investee’s profit orloss and other comprehensive income as investment income or losses and other comprehensive incomerespectively, and adjusts the carrying amount of the investment accordingly. Once the investeedeclares any cash dividends or profit distributions, the carrying amount of the investment is reducedby the amount attributable to the Group. Changes in the Group’s share of the investee’s owners’ equity,other than those arising from the investee’s net profit or loss, other comprehensive income or profitdistribution (referred to as “other changes in owners’ equity”), is recognised directly in the Group’sequity, and the carrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive income andother changes in owners’ equity, the Group recognises investment income and other comprehensiveincome after making appropriate adjustments to align the accounting policies or accounting periodswith those of the Group based on the fair value of the investee’s identifiable net assets at the date ofacquisition. Unrealised profits and losses resulting from transactions between the Group and itsassociates or joint ventures are eliminated to the extent of the Group’s interest in the associates or jointventures. Unrealised losses resulting from transactions between the Group and its associates or jointventures are eliminated in the same way as unrealised gains but only to the extent that there is no
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.impairment.
- The Group discontinues recognising its share of further losses of the investee after the carryingamount of the long-term equity investment and any long-term interest that in substance forms part ofthe Group’s net investment in the associate is reduced to zero, except to the extent that the Group hasan obligation to assume additional losses. If the joint venture subsequently reports net profits, theGroup resumes recognising its share of those profits only after its share of the profits equals the shareof losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to Note 5.20.
5.11.3 Criteria for determining the existence of joint control over an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only whendecisions about the relevant activities (activities with significant impact on the returns of thearrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group can exercise jointcontrol over an investee:
- Whether no single participant party is in a position to control the investee’s related activitiesunilaterally;- Whether strategic decisions relating to the investee’s related activities require the unanimousconsent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy decisions of aninvestee but does not have control or joint control over those policies.
5.12 Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or forboth. Investment properties are accounted for using the cost model and stated in the balance sheet atcost less accumulated depreciation, amortisation and impairment losses, and adopts a depreciation oramortisation policy for the investment property which is consistent with that for buildings or land use
rights, unless the investment property is classified as held for sale. For the impairment of theinvestment properties, refer to Note 5.20.
Category | Estimated useful life (years) | Residual value rate (%) | Depreciation rate (%) |
Plant and buildings | 20-40 years | 0 - 5% | 2.4%-5.0% |
5.13 Fixed assets
5.13.1 Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods, supply ofservices, for rental or for administrative purposes with useful lives over one accounting year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any directlyattributable expenditure for bringing the asset to working condition for its intended use. The cost ofself-constructed assets is measured in accordance with the policy set out in Note 5.14.
Where the parts of an item of fixed assets have different useful lives or provide benefits to the Groupin a different pattern, thus necessitating use of different depreciation rates or methods, each part isrecognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets are recognised asassets when it is probable that the economic benefits associated with the costs will flow to the Group,and the carrying amount of the replaced part is derecognised. The costs of the day-to-day maintenanceof fixed assets are recognised in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairmentlosses.
5.13.2 Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairment losses, is
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.depreciated using the straight-line method over its estimated useful life, unless the fixed asset isclassified as held for sale.
The estimated useful lives, residual value rates and depreciation rates of each class of fixed assets areas follows:
Class | Estimated useful life (years) | Residual value rate (%) | Depreciation rate (%) |
Plant and buildings | 20-40 years | 0 - 5% | 2.4%-5.0% |
Machinery equipment | 5-30 years | 0 - 5% | 3.2%-20.0% |
Motor vehicles | 4-12 years | 0 - 5% | 7.9%-25.0% |
Useful lives, estimated residual values and depreciation methods are reviewed at least at eachyear-end.
5.13.3 For the impairment of the fixed assets, refer to Note 5.20.
5.13.4 Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are determined as thedifference between the net disposal proceeds and the carrying amount of the item, and are recognisedin profit or loss on the date of retirement or disposal.
5.14 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalised borrowingcosts, and any other costs directly attributable to bringing the asset to working condition for itsintended use.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.A self-constructed asset is classified as construction in progress and transferred to fixed asset when itis ready for its intended use. No depreciation is provided against construction in progress.
Construction in progress is stated in the balance sheet at cost less accumulated impairment losses (seeNote 5.20).
5.15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition, and construction or production of aqualifying asset are capitalised as part of the cost of the asset. Other borrowing costs are recognised asfinancial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of any discount orpremium on borrowing) to be capitalised in each accounting period is determined as follows:
- Where funds are borrowed specifically for the acquisition and construction or production of aqualifying asset, the amount of interest to be capitalised is the interest expense calculated usingeffective interest rates during the period less any interest income earned from depositing the borrowedfunds or any investment income on the temporary investment of those funds before being used on theasset.
- To the extent that the Group borrows funds generally and uses them for the acquisition andconstruction or production of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average of the excessamounts of cumulative expenditure on the asset over the above amounts of specific borrowings. Thecapitalisation rate is the weighted average of the interest rates applicable to the general-purposeborrowings.
The effective interest rate is determined as the rate that exactly discounts estimated future cash flowthrough the expected life of the borrowing or, when appropriate, a shorter period to the initiallyrecognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and interest on aspecific-purpose borrowing denominated in foreign currency are capitalised as part of the cost of thequalifying asset. The exchange differences related to the principal and interest on foreign currency
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.borrowings other than a specific-purpose borrowing are recognised as a financial expense whenincurred.
The capitalisation period is the period from the date of commencement of capitalisation of borrowingcosts to the date of cessation of capitalisation, excluding any period over which capitalisation issuspended. Capitalisation of borrowing costs commences when expenditure for the asset is beingincurred, borrowing costs are being incurred and activities of acquisition, construction or productionthat are necessary to prepare the asset for its intended use are in progress, and ceases when the assetsbecome ready for their intended use. Capitalisation of borrowing costs should cease when thequalifying asset being constructed or produced has reached its expected usable or saleable condition.Capitalisation of borrowing costs is suspended when the acquisition, construction or productionactivities are interrupted abnormally for a period of more than three months.
5.16 Biological assets
The biological assets of the Group are productive biological assets.
Bearer biological assets are those that are held for the purposes of producing agricultural produce,rendering of services or rental. Bearer biological assets in the Group are vines. Bearer biological assetsare initially measured at cost. The cost of self-grown or self-bred bearer biological assets representsthe necessary directly attributable expenditure incurred before satisfying the expected production andoperating purpose, including capitalised borrowing costs.
Bearer biological assets, after reaching the expected production and operating purpose, are depreciatedusing the straight-line method over its estimated useful life. The estimated useful lives, estimated netresidual value rates and depreciation rates of bearer biological assets are as follows:
Category | Useful life (years) | Estimated net residual rate (%) | Annual depreciation rate (%) |
Vines | 20 years | 0% | 5.0% |
The Group evaluates the useful life and expected net salvage value by considering the normalproducing life of the bearer biological assets.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.Useful lives, estimated residual values and depreciation methods of bearer biological assets arereviewed at least at each year-end. Any changes should be treated as changes in accounting estimates.
For a bearer biological asset that has been sold, damaged, dead or destroyed, any difference betweenthe disposal proceeds and the carrying amount of the asset (after tax deduction) should be recognisedin profit or loss for the period in which it arises.
5.17 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where theestimated useful life is finite) and impairment losses (see Note 5.20). For an intangible asset with finiteuseful life, its cost estimated less residual value and accumulated impairment losses is amortised onthe straight-line method over its estimated useful life, unless the intangible asset is classified as heldfor sale.
The respective amortisation periods for intangible assets are as follows:
Item | Amortisation period (years) |
Land use rights | 40-50 years |
Software licenses | 5-10 years |
Trademark | 10 years |
An intangible asset is regarded as having an indefinite useful life and is not amortised when there is noforeseeable limit to the period over which the asset is expected to generate economic benefits for theGroup. At the balance sheet date, the Group had intangible assets with infinite useful lives includingthe land use rights and trademarks. Land use rights with infinite useful lives are permanent land userights with permanent ownership held by the Group under the relevant Chile and Australian lawsarising from the Group’s acquisition of Vi?a Indómita, S.A., Vi?a Dos Andes, S.A., and Bodegas SantaAlicia SpA. (collectively referred to as the "Chile Indomita Wine Group"), and the acquisition ofKilikanoon Estate Pty Ltd.( hereinafter referred to as the "Australia Kilikanoon Estate"), thereforethere was no amortisation. The right to use trademark refers to the trademark held by the Group arisingfrom the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate withinfinite useful lives. The valuation of trademark was based on the trends in the market and competitiveenvironment, product cycle, and managing long-term development strategy. Those bases indicated the
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.trademark will provide net cash flows to the Group within an uncertain period. The useful life isindefinite as it was hard to predict the period that the trademark would bring economic benefits to theGroup.
5.18 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s interest inthe fair value of the identifiable net assets of the acquiree under a business combination not involvingentities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulated impairment losses(see Note 5.20). On disposal of an asset group or a set of asset groups, any attributable goodwill iswritten off and included in the calculation of the profit or loss on disposal.
5.19 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefit period. Therespective amortisation periods for such expenses are as follows:
Item | Amortisation period |
Land requisition fee | 50 years |
Land lease fee | 50 years |
Greening fee | 5-20 years |
Renovation fee | 3-5 years |
Others | 3 years |
5.20 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based on internaland external sources of information to determine whether there is any indication of impairment:
- fixed assets
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.- construction in progress- intangible assets- Bearer biological assets- investment properties measured using a cost model- long-term equity investments- goodwill- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, the Groupestimates the recoverable amounts of goodwill and intangible assets with infinite useful lives at eachyear-end, irrespective of whether there is any indication of impairment. Goodwill is allocated to eachasset group, or set of asset groups, that is expected to benefit from the synergies of the combination forthe purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of its fair value(see Note 5.21) less costs to sell and its present value of expected future cash flows.
An asset group is composed of assets directly related to cash-generation and is the smallest identifiablegroup of assets that generates cash inflows that are largely independent of the cash inflows from otherassets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting the futurecash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, totheir present value using an appropriate pre-tax discount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less thanits carrying amount. A provision for impairment of the asset is recognised accordingly. Impairmentlosses related to an asset group or a set of asset groups are allocated first to reduce the carrying amountof any goodwill allocated to the asset group or set of asset groups, and then to reduce the carryingamount of the other assets in the asset group or set of asset groups on a pro rata basis. However, suchallocation would not reduce the carrying amount of an asset below the highest of its fair value lesscosts to sell (if measurable), its present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
5.21 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particular asset orliability (including the condition and location of the asset and restrictions, if any, on the sale or use ofthe asset) that market participants would consider when pricing the asset or liability at themeasurement date, and uses valuation techniques that are appropriate in the circumstances and forwhich sufficient data and other information are available to measure fair value. Valuation techniquesmainly include the market approach, the income approach and the cost approach.
5.22 Revenue
The Group recognizes the revenue upon fulfillment of its performance obligations in the contract, thatis, the client obtains control right over the relevant goods or services.
If there are two or more performance obligations under the contact, which shall be fulfilled, the Groupwill apportion the transaction price to various individual performance obligations in accordance withthe relative proportion of separate selling prices of various goods or services under these performanceobligations on the commencement date of the contract, and measure and recognize the revenue inaccordance with the transaction prices apportioned to various individual performance obligations. Forcontracts with quality assurance clauses, the Group analyzes the nature of the quality assuranceprovided. If quality assurance provides a separate service in addition to ensuring to the client that thegoods sold meet the established standards, the Group will treat it as an individual performanceobligation. Otherwise, the Group conducts accounting treatment in accordance with the AccountingStandards for Business Enterprises No. 13 - Contingencies.
The transaction price refers to the amount of consideration that the Group expects to be entitled toreceive due to the transfer of goods or services to the client, excluding payments received on behalf ofthird parties. The transaction price recognized by the Group does not exceed the amount at which theaccumulated recognized revenue will most likely not undergo a significant reversal when the relevantuncertainty is eliminated. It is expected that the money returned to the client will be regarded as a
return liability and not included in the transaction price. In the event that there is a significantfinancing part in the contract, the Group determines the transaction price based on the amount payablein cash when the client obtains control right over the relevant goods or services. The differencebetween the transaction price and the contract consideration shall be amortized by the effective interestmethod during the contract period. From the day of the enforcement of the contract, the Group expectsthat the interval between the client's acquisition of control right over the goods or services and theclient's payment of the price will not exceed one year, regardless of the significant financing part in thecontract.
If the Group meets one of the following conditions, the fulfillment of its performance obligations in acertain period will be deemed, or the fulfillment of its performance obligations at a certain time pointwill be deemed:
- The client obtains and consumes the economic benefits while the Group fulfills the performanceobligation;- The client manages to control the goods in process while the Group fulfills the performanceobligation.- Goods produced during the performance period have irreplaceable purposes and the Group isentitled to charge money for the performance accumulated and has been finished until the current timewithin the whole contract period.
For any performance obligations fulfilled in a certain period, the Group will recognize revenue withinthe certain period in accordance with the performance progress. If the performance progress cannot bedetermined reasonably and costs incurred are expected to be compensated of the Group, the revenuewill be ascertained according to the costs incurred until the performance progress is determinedreasonably.
In terms of performance obligations fulfilled at a certain time point, the Group will recognize revenuewhen the client gains control right over the relevant goods or services. When it comes to determiningwhether a client has acquired the control right over goods or services, the Group will consider thefollowing conditions:
- The Group has the current right to receive payment for the goods or services;- The Group has transferred the goods in kind to the client;- The Group has transferred the legal ownership of the product or the main risks and rewards ofownership to the client;- The client has accepted the goods or services, etc.
The Group has transferred the goods or services to the client and thus has the right to receivecorresponding consideration (and the right is dependable on factors other than time lapses) as contractasset, which is subject to provision of impairment on the basis of expected credit loss. The rightenjoyed by the Group (only depends on time lapses) to receive consideration unconditionally from theclient shall be presented under account receivables. The Group presents the obligation of transferringgoods or services for the client due to the consideration received or receivable as contract liabilities.
5.23 Employee benefits
5.23.1 Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical insurance, workinjury insurance, maternity insurance and housing fund, measured at the amount incurred or accured atthe applicable benchmarks and rates, are recognised as a liability as the employee provides services,with a corresponding charge to profit or loss or included in the cost of assets where appropriate.
5.23.2 Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the Group participatedin a defined contribution basic pension insurance plan in the social insurance system established andmanaged by government organisations. The Group makes contributions to basic pension insuranceplans based on the applicable benchmarks and rates stipulated by the government. Basic pensioninsurance contributions payable are recognised as a liability as the employee provides services, with acorresponding charge to profit or loss or included in the cost of assets where appropriate.
5.23.3 Termination benefits
When the Group terminates the employment with employees before the employment contracts expire,or provides compensation under an offer to encourage employees to accept voluntary redundancy, aprovision is recognised with a corresponding expense in profit or loss at the earlier of the followingdates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of an
employee termination plan or a curtailment proposal;- When the Group has a formal detailed restructuring plan involving the payment of terminationbenefits and has raised a valid expectation in those affected that it will carry out the restructuring bystarting to implement that plan or announcing its main features to those affected by it.
5.24 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from thegovernment to the Group except for capital contributions from the government in the capacity as aninvestor in the Group.
A government grant is recognised when there is reasonable assurance that the grant will be receivedand that the Group will comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amountreceived or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it ismeasured at fair value.
Government grants related to assets are grants whose primary condition is that the Group qualifyingfor them should purchase, construct or otherwise acquire long-term assets. Government grants relatedto income are grants other than those related to assets. A government grant related to an asset isrecognised as deferred income and amortised over the useful life of the related asset on a reasonableand systematic manner as other income or non-operating income. A grant that compensates theCompany for expenses or losses to be incurred in the future is recognised as deferred income, andincluded in other income or non-operating income in the periods in which the expenses or losses arerecognised, or included in other income or non-operating income directly.
5.25 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they relate to abusiness combination or items recognised directly in equity (including other comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable income for theyear, plus any adjustment to tax payable in respect of previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the Group has a legallyenforceable right to set them off and also intends either to settle on a net basis or to realise the assetand settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differencesrespectively, being the differences between the carrying amounts of assets and liabilities for financialreporting purposes and their tax bases, which include the deductible losses and tax credits carriedforward to subsequent periods. Deferred tax assets are recognised to the extent that it is probable thatfuture taxable profits will be available against which deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initial recognition ofassets or liabilities in a transaction that is not a business combination and that affects neitheraccounting profit nor taxable profit (or deductible loss). Deferred tax is not recognised for taxabletemporary differences arising from the initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences that would followfrom the expected manner of recovery or settlement of the carrying amounts of the assets andliabilities, using tax rates enacted at the balance sheet date that are expected to be applied in the periodwhen the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced tothe extent that it is no longer probable that the related tax benefits will be utilised. Such reduction isreversed to the extent that it becomes probable that sufficient taxable profits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of thefollowing conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current taxassets;- they relate to income taxes levied by the same tax authority on either: the same taxable entity; ordifferent taxable entities which intend either to settle the current tax liabilities and current tax assets ona net basis, or to realise the assets and settle the liabilities simultaneously, in each future period inwhich significant amounts of deferred tax liabilities or deferred tax assets are expected to be settled orrecovered.
5.26 Operating leases and finance leases
A lease is classified as either a finance lease or an operating lease. A finance lease is a lease thattransfers substantially all the risks and rewards incidental to ownership of a leased asset to the lessee,irrespective of whether the legal title to the asset is eventually transferred. An operating lease is a leaseother than a finance lease.
5.26.1 Operating lease assets
Rental payments under operating leases are recognised as part of the cost of another related asset or asexpenses on a straight-line basis over the lease term. Contingent rental payments are expensed asincurred.
5.26.2 Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment properties (see Note 5.12), aredepreciated in accordance with the Group’s depreciation policies described in Note 5.13.2. Impairmentlosses are recognised in accordance with the accounting policy described in Note 5.20. Income derivedfrom operating leases is recognised in profit or loss using the straight-line method over the lease term.If initial direct costs incurred in respect of the assets leased out are material, the costs are initiallycapitalised and subsequently amortised in profit or loss over the lease term on the same basis as thelease income. Otherwise, the costs are charged to profit or loss immediately.
5.27 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the carrying amountof a non-current asset or disposal group will be recovered through a sale transaction rather thanthrough continuing use.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, together as a wholein a single transaction and liabilities directly associated with those assets that will be transferred in thetransaction.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.A non-current asset or disposal group is classified as held for sale when all the following criteria aremet:
- According to the customary practices of selling such asset or disposal group in similartransactions, the non-current asset or disposal group must be available for immediate sale in theirpresent condition subject to terms that are usual and customary for sales of such assets or disposalgroups;- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and hasobtained a firm purchase commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carrying amount and fairvalue less costs to sell (except financial assets, deferred tax assets and investment propertiessubsequent measured at fair value initially and subsequently. Any excess of the carrying amount overthe fair value less costs to sell is recognised as an impairment loss in profit or loss.
5.28 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be approvedafter the balance sheet date, are not recognised as a liability at the balance sheet date but are disclosedin the notes separately.
5.29 Related parties
If a party has the power to control, jointly control or exercise significant influence over another party,or vice versa, or where two or more parties are subject to common control or joint control fromanother party, they are considered to be related parties. Related parties may be individuals orenterprises. Enterprises with which the Company is under common control only from the State andthat have no other related party relationships are not regarded as related parties.
In addition to the related parties stated above, the Company determines related parties based on thedisclosure requirements of Administrative Procedures on the Information Disclosures of ListedCompanies issued by the CSRC.
5.30 Segment reporting
The Group is principally engaged in the production and sales of wine, brandy, and sparkling wine inChina, France, Spain, Chile and Australia. In accordance with the Group's internal organisationstructure, management requirements and internal reporting system, the Group's operation is dividedinto four parts: China, Spain, France, Chile and Australia. The management periodically evaluatessegment results, in order to allocate resources and evaluate performances. In 2020, over 89% ofrevenue, more than 98% of profit and over 92% of non-current assets derived from China / are locatedin China. Therefore the Group does not need to disclose additional segment report information.
5.31 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and assumptionsthat affect the application of accounting policies and the reported amounts of assets, liabilities, incomeand expenses. Actual results may differ from these estimates. Estimates as well as underlyingassumptions and uncertainties involved are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised and in any future periodsaffected.
5.31.1 Significant accounting estimates
Except for accounting estimates relating to depreciation and amortisation of assets such as investmentproperties, fixed assets, bearer biological assets and intangible assets (see Notes 5.12, 13, 16 and 17)and provision for impairment of various types of assets (see Notes 7.2, 5, 6, 10, 11, 12, 13, 14 andNotes 17.1 and 3). Other significant accounting estimates are as follows:
(i) Note 7.16 – Recognition of deferred tax asset;(ii) Note 11. – Fair value measurements of financial instruments.
5.32 Changes in significant accounting policies and accounting estimates
5.32.1 Changes in significant accounting policies
The Group implemented the Accounting Standards for Business Enterprises No. 14 - Revenues revisedby the Ministry of Finance in 2017 on January 1, 2020.
Accounting Standards for Business Enterprises No. 14 - Revenues (Revision) ("New RevenueStandards")
The New Revenue Standards replace the original revenue ones. Under the original revenue standards,the Group used the transfer of risk premium as the criterion for determining the timing of revenuerecognition. The Group's revenue from sales of goods is recognized when the following conditions aremet at the same time: the main risks and rewards of property in the goods have been transferred to thebuyer, the amount of revenue and related costs can be reliably measured, and related economicbenefits are likely to flow into the Group. The Group neither retains the continuing management rightsthat are usually associated with ownership, nor does it exercise effective control over the sold goods.
Under the New Revenue Standards, the Group used the transfer of control right as the criterion fordetermining the timing of revenue recognition:
- The Group recognizes the revenue upon fulfillment of its performance obligations in the contract,that is, the client obtains control right over the relevant goods or services. If the Group meets a certaincondition, the fulfillment of its performance obligations in a certain period will be deemed, or thefulfillment of its performance obligations at a certain time point will be deemed. If there are two ormore performance obligations under the contact, which shall be fulfilled, the Group will apportion thetransaction price to various individual performance obligations in accordance with the relativeproportion of separate selling prices of various goods or services under these performance obligationson the commencement date of the contract, and measure and recognize the revenue in accordance withthe transaction prices apportioned to various individual performance obligations. The transaction pricerefers to the amount of consideration that the Group expects to be entitled to receive due to the transferof goods or services to the client, excluding payments received on behalf of third parties. Thetransaction price recognized by the Group does not exceed the amount at which the accumulatedrecognized revenue will most likely not undergo a significant reversal when the relevant uncertainty iseliminated. It is expected that the money returned to the client will be regarded as a return liability andnot included in the transaction price. In the event that there is a significant financing part in thecontract, the Group determines the transaction price based on the amount payable in cash when theclient obtains control right over the relevant goods or services. The difference between the transactionprice and the contract consideration shall be amortized by the effective interest method during thecontract period. From the day of the enforcement of the contract, the Group expects that the intervalbetween the client's acquisition of control right over the goods or services and the client's payment ofthe price will not exceed one year, regardless of the significant financing part in the contract.
- The Group adjusted relevant accounting policies in accordance with the specific provisions of theNew Revenue Standards on specific matters or transactions, such as contract costs, sales with salesreturn clauses, and sales divisions with quality assurance clauses.
- In accordance with the New Revenue Standards, the Group, based on the relationship betweenperformance obligations and client payments, presents contract assets or liabilities in the balance sheet.At the same time, the Group provides more disclosures on revenue-related information disclosurerequirements in accordance with the New Revenue Standards, such as relevant accounting policies,judgments with significant influence (the measurement of variable consideration, the method ofallocating the transaction price to each individual performance obligation, the assumption used inestimating the stand-alone selling price of each individual performance obligation, etc.), informationrelated to client contracts (revenue recognition for the current period, contract balance, performanceobligations, etc.), and information on assets related to contract costs.
The Group, based on the cumulative impact of the first implementation of the New Revenue Standards,adjusted the retained earnings at the beginning of 2020 and the amount of other related items in thefinancial statements, except for comparative financial statement data.
5.32.2
Changes in significant accounting estimatesNil
5.32.3 Particulars of first implementation of new income standards to adjust the firstimplementation of related items in the financial statements at the beginning of the year
Consolidated Balance Sheet
Unit: Yuan
Item | December 31, 2019 | January 1, 2020 | Adjustments |
Current assets: | |||
Monetary fund | 1,565,783,980 | 1,565,783,980 | |
Settlement reserves | |||
Lending funds | |||
Tradable financial assets | |||
Derivative financial assets | |||
Bills receivable | |||
Accounts receivable | 266,218,153 | 266,218,153 | |
Receivables financing | 316,470,229 | 316,470,229 | |
Advance payment | 67,707,537 | 67,707,537 | |
Premium receivable |
Item | December 31, 2019 | January 1, 2020 | Adjustments |
Reinsurance accounts receivable | |||
Receivable reserves for reinsurance contract | |||
Other receivables | 24,246,812 | 24,246,812 | |
Including: Interest receivable | 148,927 | 148,927 | |
Dividends receivable | |||
Redemptory monetary capital for sale | |||
Inventories | 2,872,410,407 | 2,872,410,407 | |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | 267,424,938 | 267,424,938 | |
Total current assets | 5,380,262,056 | 5,380,262,056 | |
Non-current assets: | |||
Offering loans and imprest | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 43,981,130 | 43,981,130 | |
Other investments in equity instruments | |||
Other non-current financial assets | |||
Investment real estate | 29,714,586 | 29,714,586 | |
Fixed assets | 5,894,068,898 | 5,894,068,898 | |
Construction in progress | 567,478,833 | 567,478,833 | |
Productive biological assets | 202,425,286 | 202,425,286 | |
Oil-and-gas assets | |||
Right-of-use assets | |||
Intangible assets | 651,946,355 | 651,946,355 | |
Development expenditure | |||
Goodwill | 141,859,193 | 141,859,193 | |
Long-term prepaid expenses | 277,595,408 | 277,595,408 | |
Deferred income tax assets | 264,926,503 | 264,926,503 | |
Other non-current assets | 193,674,320 | 193,674,320 | |
Total non-current assets | 8,267,670,512 | 8,267,670,512 | |
Total assets | 13,647,932,568 | 13,647,932,568 | |
Current liabilities: | |||
Short-term loans | 754,313,744 | 754,313,744 | |
Borrowings from the Central Bank | |||
Loans from other banks and other financial institutions | |||
Tradable financial liabilities | |||
Derivative financial liabilities | |||
Bills payable | |||
Accounts payable | 570,252,612 | 570,252,612 | |
Advances from customers | 120,609,499 | -120,609,499 | |
Contract liabilities | 106,734,070 | 106,734,070 | |
Financial assets sold for repurchase |
Item | December 31, 2019 | January 1, 2020 | Adjustments |
Deposits from customers and interbank | |||
Receivings from vicariously traded securities | |||
Receivings from vicariously sold securities | |||
Employee remunerations payable | 234,459,116 | 234,459,116 | |
Taxes and dues payable | 375,169,971 | 375,169,971 | |
Other payables | 450,532,485 | 450,532,485 | |
Including: Interest payable | 758,047 | 758,047 | |
Dividends payable | 1,366,559 | 1,366,559 | |
Handling charges and commissions payable | |||
Dividend payable for reinsurance | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | 150,826,221 | 150,826,221 | |
Other current liabilities | 13,875,429 | 13,875,429 | |
Total current liabilities | 2,656,163,648 | 2,656,163,648 | |
Non-current liabilities: | |||
Reserves for insurance contracts | |||
Long-term borrowings | 128,892,501 | 128,892,501 | |
Bonds payable | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term accounts payable | 191,000,000 | 191,000,000 | |
Long-term employee remunerations payable | |||
Estimated liabilities | |||
Deferred income | 70,701,288 | 70,701,288 | |
Deferred income tax liabilities | 14,691,424 | 14,691,424 | |
Other non-current liabilities | 7,645,777 | 7,645,777 | |
Total non-current liabilities | 412,930,990 | 412,930,990 | |
Total liabilities | 3,069,094,638 | 3,069,094,638 | |
Owner’s equity: | |||
Capital stock | 685,464,000 | 685,464,000 | |
Other equity instruments | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Capital surplus | 565,050,422 | 565,050,422 | |
Minus: Treasury stock | |||
Other comprehensive income | -4,235,583 | -4,235,583 | |
Special reserves | |||
Surplus reserves | 342,732,000 | 342,732,000 | |
General risk preparation | |||
Undistributed profit | 8,719,899,359 | 8,719,899,359 | |
Total owner’s equities attributable to the parent company | 10,308,910,198 | 10,308,910,198 | |
Minority equity | 269,927,732 | 269,927,732 | |
Total owner’s equities | 10,578,837,930 | 10,578,837,930 | |
Total liabilities and owner’s equities | 13,647,932,568 | 13,647,932,568 |
Balance Sheet of the Parent Company
Unit: Yuan
Item | December 31, 2019 | January 1, 2020 | Adjustments |
Current assets: | |||
Monetary fund | 710,505,269 | 710,505,269 | |
Tradable financial assets | |||
Derivative financial assets | |||
Bills receivable | |||
Accounts receivable | 1,988,326 | 1,988,326 | |
Receivables financing | 41,679,635 | 41,679,635 | |
Advance payment | 776,539 | 776,539 | |
Other receivables | 586,424,958 | 586,424,958 | |
Including: Interest receivable | 90,355 | 90,355 | |
Dividends receivable | 200,000,000 | 200,000,000 | |
Inventories | 434,007,808 | 434,007,808 | |
Contract assets | |||
Assets held for sale | |||
Non-current assets due within one year | |||
Other current assets | 39,130,466 | 39,130,466 | |
Total current assets | 1,814,513,001 | 1,814,513,001 | |
Non-current assets: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 7,432,422,621 | 7,432,422,621 | |
Other investments in equity instruments | |||
Other non-current financial assets | |||
Investment real estate | 29,714,586 | 29,714,586 | |
Fixed assets | 261,137,072 | 261,137,072 | |
Construction in progress | |||
Productive biological assets | 121,414,096 | 121,414,096 | |
Oil and gas assets | |||
Right-of-use assets | |||
Intangible assets | 64,864,913 | 64,864,913 | |
Development expenditure | |||
Goodwill | |||
Long-term prepaid expenses | |||
Deferred income tax assets | 16,255,870 | 16,255,870 | |
Other non-current assets | 1,427,700,000 | 1,427,700,000 | |
Total non-current assets | 9,353,509,158 | 9,353,509,158 | |
Total assets | 11,168,022,159 | 11,168,022,159 | |
Current liabilities: | |||
Short-term loans | 150,000,000 | 150,000,000 | |
Tradable financial liabilities | |||
Derivative financial liabilities | |||
Bills payable |
Item | December 31, 2019 | January 1, 2020 | Adjustments |
Accounts payable | 63,655,240 | 63,655,240 | |
Advances from customers | |||
Contract liabilities | |||
Employee remunerations | 70,445,847 | 70,445,847 | |
Taxes and dues payable | 6,052,456 | 6,052,456 | |
Other payables | 660,149,563 | 660,149,563 | |
Including: Interest payable | 181,250 | 181,250 | |
Dividends payable | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | |||
Total current liabilities | 950,303,106 | 950,303,106 | |
Non-current liabilities: | |||
Long-term borrowings | |||
Bonds payable | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term accounts payable | |||
Long-term employee remuneration payable | |||
Estimated liabilities | |||
Deferred income | 9,176,315 | 9,176,315 | |
Deferred income tax liabilities | |||
Other non-current liabilities | 3,146,707 | 3,146,707 | |
Total non-current liabilities | 12,323,022 | 12,323,022 | |
Total liabilities | 962,626,128 | 962,626,128 | |
Owner’s equity: | |||
Capital stock | 685,464,000 | 685,464,000 | |
Other equity instruments | |||
Including: Preferred stock | |||
Perpetual bonds | |||
Capital surplus | 557,222,454 | 557,222,454 | |
Minus: Treasury stock | |||
Other comprehensive income | |||
Special reserves | |||
Surplus reserves | 342,732,000 | 342,732,000 | |
Undistributed profit | 8,619,977,577 | 8,619,977,577 | |
Total owner’s equities | 10,205,396,031 | 10,205,396,031 | |
Total liabilities and owner’s equities | 11,168,022,159 | 11,168,022,159 |
6. Taxes
6.1 The main taxes and tax rates are as follows:
6.2 Tax incentives
Ningxia Changyu Grape Growing Co., Ltd.("Ningxia Growing"), a subsidiary of the Group, whoseprincipal activity is grape growing, is incorporated in Ningxia Huizu Autonomous Region. Accordingto clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income Tax Measures forImplementation, Ningxia Growing enjoys an exemption of corporate income tax.
Yantai Changyu Grape Growing Co., Ltd. ("Grape Growing"), a branch of the Company, whoseprincipal activity is grape growing, is incorporated in Zhifu District, Yantai City, Shandong Province.According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income TaxMeasures for Implementation, Grape Growing enjoys an exemption of corporate income tax.
Beijing Changyu AFIP Agriculture Development Co., Ltd ("Agriculture Development"), a subsidiaryof the Group, whose principal activity is grape growing, is incorporated in Miyun County, Beijing.According to clause 27 of the Corporate Income Tax Law of the People’s Republic of China and clause86 of the Implementation Rules of Enterprise Income Tax Law of the People’s Republic of China,Agriculture Development enjoys an exemption of corporate income tax.
Xinjiang Tianzhu Co., Ltd ("Xinjiang Tianzhu"), a subsidiary of the Company, is an enterprise of wineproduction and sales incorporated in Shihezi city, Xinjiang Uygur Autonomous Region. In accordancewith the Notice on Tax Policy Issues concerning Further Implementation of the Western ChinaDevelopment Strategy (Cai Shui [2011] No.58), Xinjiang Tianzhu is qualified to enjoy preferentialtaxation policies, which means it can pay corporate income tax at a preferential rate of 15% for theperiod from 2015 to 2020.
Tax category | Taxation basis | Tax rates |
Value added tax | Levied on the balance between the output tax calculated based on taxable income and the input tax allowed to be deducted in current period | 13%, 9%, 6% (China), 20% (France), 21% (Spain), 19% (Chile), 10% (Australia) |
Consumption tax | Levied on taxable income | 10% of the price, 20% of the price and 1,000 Yuan each ton (China) |
City development tax | Levied on circulation tax actually paid | 7% (China) |
Corporate income tax | Levied on taxable income | 25% (China), 28% (France), 28% (Spain), 27% (Chile), 30% (Australia) |
Xinjiang Babao Baron Chateau Co., Ltd. ("Shihezi Chateau"), a subsidiary of the Company, is anenterprise of wine production and sales incorporated in Shihezi city, Xinjiang Uygur AutonomousRegion. In accordance with the Notice on Tax Policy Issues concerning Further Implementation of theWestern China Development Strategy (Cai Shui [2011] No.58), Shihezi Chateau is qualified to enjoypreferential taxation policies, which means it can pay corporate income tax at a preferential rate of15% for the period from 2015 to 2020.
7. Notes to items in the consolidated financial statement
7.1 Monetary capital
Unit: Yuan
Item | Ending balance | Beginning balance |
Cash on hand | 38,910 | 59,975 |
Bank deposit | 1,384,635,885 | 1,474,489,177 |
Other monetary capital | 91,532,260 | 91,234,828 |
Total | 1,476,207,055 | 1,565,783,980 |
Including: Total overseas deposits | 49,084,619 | 42,752,630 |
As at June 30, 2020, the restricted bank deposit details are listed as follows:
Unit: Yuan
Item | Ending balance | Beginning balance |
Housing fund of the unit | 2,684,406 | 2,647,877 |
Total | 2,684,406 | 2,647,877 |
As at June 30, 2020, the details of other monetary funds are listed as follows:
Unit: Yuan
Item | Ending balance | Beginning balance |
Pledge of fixed deposits by Yantai Changyu Wine Research, Development and Manufacture Co., Ltd. (“R&D Company”) | 46,100,000 | 46,100,000 |
Guaranteed deposits paid for the letter of credit | 44,540,850 | 44,540,850 |
Account balance of Alipay | 685,691 | 583,978 |
Guaranty money for the unit card | 195,719 | - |
Guaranty money for ICBC platform | 10,000 | 10,000 |
Total | 91,532,260 | 91,234,828 |
As at June 30, 2020, the bank deposits of the Group including short-term fixed deposits ranging from3 months to 12 months amounted to RMB 81,200,000 Yuan (December 31, 2019: RMB 106,128,600),with the interest rates ranging from 1.40% to 2.75%.
7.2 Bills receivable
7.2.1 Classification of bills receivable
Unit: Yuan
Type | Ending balance | Beginning balance | ||||||||
Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
Accounts receivable for which provision for bad debts is accrued on a single item basis | ||||||||||
Accounts receivable for which provision for bad debts is accrued on a combined basis | 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 |
Provision for bad debts accrued on a combined basis:
Unit: Yuan
Name | Ending balance | ||
Book balance | Provision for bad debts | Accrued proportion | |
Amounts due from related parties | 2,005,182 | 67,379 | 3.40% |
Amounts due from other customers | 182,936,991 | 17,136,161 | 9.40% |
Total | 184,942,173 | 17,203,540 | 9.30% |
Disclosed by age:
Unit: Yuan
Age | Ending balance |
Within 1 year (including 1 year) | 178,061,481 |
1-2 years | 5,228,218 |
2-3 years | 1,652,474 |
Over 3 years | |
Total | 184,942,173 |
As at June 30, 2020, the accounts receivable with ownership restrictions were RMB 31,557,404 Yuan(December 31, 2019: 54,663,422 Yuan). Please refer to Note 7.18 for details.
7.2.2 Provision for bad debts accrued, withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
Unit: Yuan
Type | Beginning balance of the year | Changes in this period | Ending balance | ||
Accrued | Withdrawn or transferred back | Cancelled | |||
Accounts receivable for which provision for bad debts is accrued | 17,304,375 | 100,835 | 17,203,540 | ||
Total | 17,304,375 | 100,835 | 17,203,540 |
7.2.3 Accounts receivable actually cancelled after verification in this period
Nil
7.2.4 Accounts receivable collected by the borrowers of top 5 units ranked by the endingbalance
Unit: Yuan
Unit | Relationship with the Company | Amount | Period | Percentage in total accounts receivable | Ending balance of provision for bad and doubtful debts |
Lianhua Supermarket Holdings Co., Ltd. | Third party | 12,068,877 | Within 1 year | 6.50% | 1,821,381 |
Nonggongshang Supermarket (Group) Co., Ltd. | Third party | 10,822,716 | Within 1 year | 5.90% | 2,588,499 |
CIA. ZAFFARI COMERCIO E | Third party | 4,962,855 | Within 1 year | 2.70% | 159,007 |
TRI-VIN IMPORTS, INC. | Third party | 4,729,522 | Within 1 year | 2.60% | 47,175 |
Kingsland Wines and Spirits | Third party | 4,529,090 | Within 1 year | 2.40% | 145,109 |
Total | -- | 37,113,060 | -- | 20.1% | 4,761,171 |
7.2.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.2.6 Accounts receivable transferred and included in assets and liabilitiesNil
7.3 Receivables financing
Unit: Yuan
Item | Ending balance | Beginning balance |
Bills receivable | 222,918,741 | 316,470,229 |
Total | 222,918,741 | 316,470,229 |
7.3.1 The pledged bills receivable of the Group at the end of the yearNil
7.3.2 Outstanding endorsed bills that have not matured at the end of the year
Item | Amount derecognised at year end |
Bank acceptance bills | 90,385,572 |
Total | 90,385,572 |
As at June 30, 2020, bills endorsed by the Group to other parties which are not yet due at the end ofthe period is RMB90,385,572 Yuan(December 31, 2019: RMB265,759,455 Yuan). The notes are usedfor payment to suppliers and constructions. The Group believes that due to good reputation of bank,the risk of notes not accepting by bank on maturity is very low, therefore derecognise the notereceivables endorsed. If the bank is unable to pay the notes on maturity, according to the relevant lawsand regulations of China, the Group would undertake limited liability for the notes.
7.4 Advance payment
7.4.1 Advance payment listed by age
Unit: Yuan
Age | Ending balance | Beginning sum | ||
Amount | Proportion | Amount | Proportion | |
Within 1 year | 10,200,527 | 100% | 67,441,713 | 99.6% |
1-2 years | 265,824 | 0.4% | ||
2-3 years | ||||
More than 3 years | ||||
Total | 10,200,527 | 100%-- | 67,707,537 | -- |
7.4.2 Advance payment collected by the prepaid parties of top 5 units ranked by theending balance
Unit: Yuan
Category of client | Relationship with the Group | Amount | Age | Reason for unsettlement | Percentage in the total advance payment% |
Chateau De Mirefleurs | Related party | 6,429,542 | Within 1 year | Prepayments | 63.0% |
Chateau De Liversan | Related party | 1,632,941 | Within 1 | Prepayments | 16.0% |
year | |||||
State Grid Shandong Electronic Power Yantai Company | Third party | 1,229,571 | Within 1 year | Prepaid electricity fees | 12.1% |
Beijing Shanshui Decoration Company | Third party | 97,000 | Within 1 year | Prepaid maintenance cost | 1.0% |
Sinopec Sales Co., Ltd. Shandong Yantai Petroleum Branch | Third party | 90,000 | Within 1 year | Prepaid fuel cost | 0.9% |
Total | -- | 9,479,054 | -- | 93.0% |
7.5 Other receivables
Unit: Yuan
Item | Ending balance | Beginning balance |
Interest receivable | 698,347 | 148,927 |
Dividends receivable | ||
Other receivables | 24,896,454 | 24,097,885 |
Total | 25,594,801 | 24,246,812 |
7.5.1 Interest receivable
Unit: Yuan
Item | Ending balance | Beginning balance |
Fixed deposit | 698,347 | 148,927 |
Entrusted loan | ||
Bond investment | ||
Total | 698,347 | 148,927 |
7.5.2 Other receivables
7.5.2.1 Other receivables classified by nature
Unit: Yuan
Nature | Ending book balance | Beginning book balance |
Deposit and guaranty money receivable | 8,546,270 | 9,812,027 |
Imprest receivable | 832,227 | 1,741,147 |
Consumption tax and added-value tax export rebate | 7,878,064 | 8,937,164 |
Other | 7,639,893 | 3,607,547 |
Total | 24,896,454 | 24,097,885 |
7.5.2.2 Disclosed by age
Unit: Yuan
Age | Ending balance |
Age | Ending balance |
Within 1 year (including 1 year) | 16,742,154 |
1-2 years | 383,863 |
2-3 years | 721,352 |
More than 3 years | 7,049,085 |
Total | 24,896,454 |
7.5.2.3 Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan; and that withdrawn or transferredback in this period was RMB 0 Yuan.
7.5.2.4 Other receivables actually cancelled after verification in this periodNil
7.5.2.5 Other receivables collected by the borrowers of top 5 units ranked by the endingbalance
Unit: Yuan
Unit | Nature | Ending balance | Age | Percentage in total ending balance of other accounts receivable | Ending balance of provision for bad debts |
Sercicio de Impuestos Internos | Value-added tax rebate | 6,668,550 | Within 1 years | 26.8% | |
YEDA Finance Bureau | Guaranty money | 5,262,324 | Over 3 years | 21.1% | |
YEDA Construction Industry Association | Construction guaranty money | 1,143,500 | Over 3 years | 4.6% | |
Yantai God Horse Packing Co., Ltd. | Lease payment receivable | 1,626,880 | Within 1 year | 6.5% | |
Changyu Group | Lease payment payable | 3,775,362 | Within 1 year | 15.2% | |
Total | -- | 18,476,616 | -- | 74.2% |
7.5.2.6 Accounts receivable involving government subsidies
Nil
7.5.2.7 Other receivables that are terminated for recognition due to transfer of financial assets
Nil
7.5.2.8 Other receivables transferred and then included in assets and liabilitiesNil
7.6 Inventories
7.6.1 Inventory classification
Unit: Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Depreciation provision | Book value | Book balance | Depreciation provision | Book value | |
Raw materials | 53,065,316 | 53,065,316 | 71,681,418 | 71,681,418 | ||
Goods in process | 2,282,289,166 | 2,282,289,166 | 2,102,781,536 | 2,102,781,536 | ||
Commodity stocks | 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 |
7.6.2 Inventory depreciation provision
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
Accrual | Other | Transfer back or write-off | Other | |||
Raw materials | ||||||
Goods in process | ||||||
Commodity stocks | 20,179,637 | 11,609,324 | 8,570,313 | |||
Total | 20,179,637 | 11,609,324 | 8,570,313 |
7.7 Other current assets
Unit: Yuan
Item | Ending balance | Beginning balance |
Prepaid corporate income tax | 26,971,533 | 16,854,091 |
Deductible input tax | 234,012,096 | 248,975,183 |
Rent to be amortized | 1,934,092 | 1,595,664 |
Total | 262,917,721 | 267,424,938 |
7.8 Long-term equity investments
Unit: Yuan
Investee | Beginning balance (book value) | Movements during the period | Ending balance (book value) | Ending balance of provision for impairment | |||||||
Increase in capital | Decrease in capita | Losses from investments under equity-method | Other omprehensive income adjustment | Other equity changing | Declare cash dividend or profit | Accrual provision for impairment | Others | ||||
1. Joint ventures | |||||||||||
SAS L&M Holdings (“L&M Holdings”) | 43,981,130 | -1,170,685 | 42,810,445 | ||||||||
Subtotal | 43,981,130 | -1,170,685 | 42,810,445 |
On February 22, 2019, Francs Champs Participations SAS (“Francs Champs”), a subsidiary of the
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co., Ltd.Group, signed the Cooperation Agreement with SC Garri du Gai to establish L&M Holdings, a jointventure. Francs Champs contributed 100% of the equity of its subsidiary, Societe Civile Argricole DuChateau De Mirefleurs (“Mirefleurs”), with a fair value of RMB45,102,058 Yuan, accounting for 55%of the shares of L&M Holdings. As per the Agreement and the Articles of Association, L&M Holdingsis jointly controlled by shareholders of both parties.
7.9 Investment real estate
7.9.1 Investment real estate by cost measurement method
Unit: Yuan
Item | Houses and buildings | Land use right | Construction in progress | Total |
Ⅰ Original book value | ||||
1. Beginning balance | 70,954,045 | 70,954,045 | ||
2. Increase in this period | ||||
2.1 Outsourcing | ||||
2.2 Transfer in from inventories\fixed assets\ construction in progress | ||||
2.3 Business merger increase | ||||
3. Decrease in this period | ||||
3.1 Disposal | ||||
3.2 Other transfer out | ||||
4. Ending balance | 70,954,045 | 70,954,045 | ||
Ⅱ Accumulated depreciation & accumulated amortization | ||||
1. Beginning balance | 41,239,459 | 41,239,459 | ||
2. Increase in this period | 1,369,899 | 1,369,899 | ||
2.1 Accrual or amortization | 1,369,899 | 1,369,899 | ||
3. Decrease in this period | ||||
3.1 Disposal | ||||
3.2 Other transfer out | ||||
4. Ending balance | 42,609,358 | 42,609,358 | ||
Ⅲ Impairment provision | ||||
1. Beginning balance | ||||
2. Increase in this period | ||||
2.1 Accrual | ||||
3. Decrease in this period | ||||
3.1 Disposal | ||||
3.2 Other transfer out | ||||
4. Ending balance | ||||
Ⅳ Book value | ||||
1. Ending book value | 28,344,687 | 28,344,687 | ||
2. Beginning book value | 29,714,586 | 29,714,586 |
7.10 Fixed assets
Unit: Yuan
Item | Ending balance | Beginning balance |
Fixed assets | 5,818,499,845 | 5,894,068,898 |
Disposal of fixed assets | ||
Total | 5,818,499,845 | 5,894,068,898 |
7.10.1 Particulars of fixed assets
Unit: Yuan
Item | Houses and buildings | Machinery equipment | Construction tools | Total |
Ⅰ Original book value: | ||||
1. Beginning balance | 5,093,628,796 | 2,730,306,041 | 26,670,156 | 7,850,604,993 |
2. Increase in this period | 26,435,121 | 32,745,994 | 1,109,021 | 60,290,136 |
2.1 Acquisition | 16,217,779 | 30,825,672 | 1,109,021 | 48,152,472 |
2.2 Transfer in from construction in progress | 10,217,342 | 1,920,322 | 12,137,664 | |
2.3 Business merger increase | ||||
3. Decrease in this period | 1,037,337 | 1,037,337 | ||
3.1 Disposal or retirement | 1,037,337 | 1,037,337 | ||
4. Ending balance | 5,120,063,917 | 2,762,014,698 | 27,779,177 | 7,909,857,792 |
Ⅱ Accumulated depreciation | ||||
1. Beginning balance | 755,115,344 | 1,163,797,943 | 20,144,781 | 1,939,058,068 |
2. Increase in this period | 55,228,292 | 78,723,926 | 1,136,974 | 135,089,192 |
2.1 Accrual | 55,228,292 | 78,723,926 | 1,136,974 | 135,089,192 |
3. Decrease in this period | 267,340 | 267,340 | ||
3.1 Disposal or retirement | 267,340 | 267,340 | ||
4. Ending balance | 810,343,636 | 1,242,254,529 | 21,281,755 | 2,073,879,920 |
Ⅲ Impairment provision | ||||
1. Beginning balance | 17,478,027 | 17,478,027 | ||
2. Increase in this period | ||||
2.1 Accrual | ||||
3. Decrease in this period | ||||
3.1 Disposal or retirement | ||||
4. Ending balance | 17,478,027 | 17,478,027 | ||
Ⅳ Book value | ||||
1. Ending book value | 4,309,720,281 | 1,502,282,142 | 6,497,422 | 5,818,499,845 |
2. Beginning book value | 4,338,513,452 | 1,549,030,071 | 6,525,375 | 5,894,068,898 |
As at June 30, 2020, the net value of the fixed assets with ownership restrictions was RMB338,237,400 Yuan (December 31, 2019: RMB 344,670,852 Yuan). Please refer to Note 7.51 fordetails.
7.10.2 Particulars of temporarily idle fixed assets
Unit: Yuan
Item | Original book value | Accumulated depreciation | Depreciation reserves | Book value | Remarks |
Buildings | 47,821,026 | 15,511,660 | 32,309,366 | ||
Machinery equipment | 73,592,531 | 54,095,030 | 17,478,027 | 2,019,474 | |
Other equipment | 3,344,518 | 3,176,756 | 167,762 | ||
Total | 124,758,075 | 72,783,446 | 17,478,027 | 34,496,602 |
7.10.3 Particulars of fixed assets under finance leases
Nil
7.10.4 Fixed assets under operating lease
Unit: Yuan
Item | Ending book value |
Machinery equipment | 64,944 |
7.10.5 Particulars of fixed assets without property certificates
Unit: Yuan
Item | Book value | Reason for not receiving the property certificate |
Industrial Production Center of the R&D Company | 1,744,312,701 | Under transaction |
Dormitory Building, Main Building and Reception Building of Chang’an Chateau | 283,676,202 | Under transaction |
European Town, Main Building and Service Building of Beijing Chateau | 178,930,935 | Under transaction |
Main Building of Yantai Chateau Changyu Tinlot | 78,378,833 | Under transaction |
Fermentation Workshop and Wine Storage Workshop of Xinjiang Tianzhu | 16,802,302 | Under transaction |
Office Building and Packaging Workshop of Icewine Valley | 8,736,650 | Under transaction |
Wine-making Workshop of Changyu (Jingyang) | 3,707,219 | Under transaction |
Office Building, Laboratory Building and Workshop of Fermentation Center | 3,400,025 | Under transaction |
Finished Goods Warehouse and Workshop of Kylin Packaging | 2,260,833 | Under transaction |
Office of Sales Company | 2,232,626 | Under transaction |
Total | 2,322,438,325 | Under transaction |
7.11 Construction in progress
Unit: Yuan
Item | Ending balance | Beginning balance |
Construction in progress | 647,036,593 | 567,478,833 |
Engineering materials | ||
Total | 647,036,593 | 567,478,833 |
7.11.1 Particulars of construction in progress
Unit: Yuan
Item | Ending balance | Beginning balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Research, Development & Manufacture Center (“Changyu Wine City Complex”) | 571,245,868 | 571,245,868 | 485,017,326 | 485,017,326 | ||
Construction Project of Ningxia Chateau | 46,448,561 | 46,448,561 | 46,448,561 | 46,448,561 | ||
Construction Project of Chang’an Chateau | 5,002,367 | 5,002,367 | 4,052,839 | 4,052,839 | ||
Construction Project of Shihezi Chateau | 1,326,390 | 1,326,390 | 877,348 | 877,348 | ||
Construction Project of Sales Company | 7,925,062 | 7,925,062 | 6,313,962 | 6,313,962 | ||
Construction Projects of Other Companies | 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 |
7.11.2 Changes of major construction in progress in this period
Item | Budget | Beginning balance | Increase in this period | Transferred to fixed assets in this period | Other decrease in this period | Ending balance | Proportion of accumulative project input in budget | Accumulative capitalized amount of interest | Including: capitalized amount of interest in this period | Capitalization ratio of interest in this period | Capital source |
Changyu Wine City Complex | 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% and 4.3% | Loans form financial institutions and self-raised funds | |
Construction Project of Ningxia Chateau | 414,150,000 | 46,448,561 | 46,448,561 | 102.20% | Self-raised funds | ||||||
Construction Project of Chang’an Chateau | 620,740,000 | 4,052,839 | 6,522,266 | 5,572,738 | 5,002,367 | 111.50% | Self-raised funds | ||||
Construction Project of Shihezi Chateau | 780,000,000 | 877,348 | 449,042 | 1,326,390 | 96.50% | Self-raised funds | |||||
Construction Project of Sales Company | 161,350,000 | 6,313,962 | 1,611,100 | 7,925,062 | 101.30% | Self-raised funds | |||||
Total | 6,482,020,000 | 542,710,036 | 101,360,491 | 12,122,279 | 631,948,248 | -- | 15,824,401 | 411,299 | -- |
As at June 30, 2020, there was no indication for impairment of construction in progress of the Group, so no provision for impairment was made.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.12 Productive biological assets
7.12.1 Productive biological assets by cost measurement method
Unit: Yuan
Item | Plantation | Total | |
Immature | Mature | ||
Ⅰ Original book value | |||
1. Beginning balance | 12,828,822 | 240,517,972 | 253,346,794 |
2. Increase in this period | -5,577,636 | 6,173,226 | 595,590 |
2.1 Outsourcing | |||
2.2 Self cultivation | 595,590 | 595,590 | |
The immature turn to the mature | -6,173,226 | 6,173,226 | |
3. Decrease in this period | |||
3.1 Disposal | |||
3.2 Other | |||
4. Ending balance | 7,251,186 | 246,691,198 | 253,942,384 |
Ⅱ Accumulated depreciation | |||
1. Beginning balance | 50,921,508 | 50,921,508 | |
2. Increase in this period | 6,782,285 | 6,782,285 | |
2.1 Accrual | 6,782,285 | 6,782,285 | |
3. Decrease in this period | |||
3.1 Disposal | |||
3.2 Other | |||
4. Ending balance | 57,703,793 | 57,703,793 | |
Ⅲ Impairment provision | |||
1. Beginning balance | |||
2. Increase in this period | |||
2.1 Accrual | |||
3. Decrease in this period | |||
3.1 Disposal | |||
3.2 Other | |||
4. Ending balance | |||
Ⅳ Book value | |||
1. Ending book value | 7,251,186 | 188,987,405 | 196,238,591 |
2. Beginning book value | 12,828,822 | 189,596,464 | 202,425,286 |
As at June 30, 2020, no ownership of the biological assets was restricted.
As at June 30, 2020, there was no indicationfor impairment ofbiological assets of the Group, so noprovision was made.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.13 Intangible assets
7.13.1 Particulars of intangible assets
Unit: Yuan
Item | Land use right | Software use right | Trademark | Total |
Ⅰ Original book value | ||||
1. Beginning balance | 531,755,702 | 88,258,481 | 170,773,266 | 790,787,449 |
2. Increase in this period | 337,512 | 82,249 | 419,761 | |
2.1 Acquisition | 337,512 | 82,249 | 419,761 | |
2.2 Internal R&D | ||||
2.3 Business merger increase | ||||
3. Decrease in this period | ||||
3.1 Disposal | ||||
4. Ending balance | 531,755,702 | 88,595,993 | 170,855,515 | 791,207,210 |
Ⅱ Accumulated amortization | ||||
1. Beginning balance | 89,333,506 | 35,165,790 | 14,341,798 | 138,841,094 |
2. Increase in this period | 5,353,487 | 5,716,724 | 75,325 | 11,145,536 |
2.1 Accrual | 5,353,487 | 5,716,724 | 75,325 | 11,145,536 |
3. Decrease in this period | ||||
3.1 Disposal | ||||
4. Ending balance | 94,686,993 | 40,882,514 | 14,417,123 | 149,986,630 |
Ⅲ Impairment provision | ||||
1. Beginning balance | ||||
2. Increase in this period | ||||
2.1 Accrual | ||||
3. Decrease in this period | ||||
3.1 Disposal | ||||
4. Ending balance | ||||
Ⅳ Book value | ||||
1. Ending book value | 437,068,709 | 47,713,479 | 156,438,392 | 641,220,580 |
2. Beginning book value | 442,422,196 | 53,092,691 | 156,431,468 | 651,946,355 |
As at June 30, 2020, the net value of the intangible assets with ownership restrictions was RMB209,707,945 Yuan (December 31, 2019: RMB 212,495,435). Please refer to Note 7.51 for details.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.13.2 Particulars of land use right of that not receiving the property certificate
Nil
7.14 Goodwill
7.14.1 Original book value of goodwill
Unit: Yuan
Name of the invested unit or matter forming goodwill | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
Formed by business merger | Other | Disposal | Other | |||
Etablissements Roullet Fransac (“Roullet Fransac”) | 13,112,525 | 13,112,525 | ||||
Dicot Partners, S.L (“Atrio Group”) | 92,391,901 | 92,391,901 | ||||
Indomita Wine Company Chile, SpA | 6,870,115 | 6,870,115 | ||||
Kilikanoon Estate, Australia | 37,063,130 | 37,063,130 | ||||
Total | 149,437,671 | 149,437,671 |
7.14.2 Provision for impairment of goodwill
Unit: Yuan
Name of the invested unit or matter forming goodwill | Beginning balance | Increase in this period | Decrease in this period | Ending balance | ||
Formed by business merger | Other | Disposal | Other | |||
Etablissements Roullet Fransac (“Roullet Fransac”) | ||||||
Dicot Partners, S.L (“Atrio Group”) | ||||||
Indomita Wine Company Chile, SpA | ||||||
Kilikanoon Estate, Australia | 7,578,478 | 7,578,478 | ||||
Total | 7,578,478 | 7,578,478 |
7.15 Long-term unamortized expenses
Unit: Yuan
Item | Beginning balance | Increase in this period | Amortization in this period | Other decrease | Ending balance |
Land lease fees | 52,129,414 | 699,680 | 51,429,734 | ||
Land acquisition fees | 41,460,260 | 575,734 | 40,884,526 | ||
Afforestation fees | 145,952,500 | 787,431 | 4,610,618 | 142,129,313 | |
Renovation costs | 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 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.16 Deferred income tax assets/liabilities
7.16.1 Un-offset deferred income tax assets
Unit: Yuan
Item | Ending Balance | Beginning Balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Asset impairment provision | 43,251,879 | 10,812,970 | 54,771,519 | 13,692,880 |
Unrealized profits from inter-company transactions | 333,361,876 | 83,340,470 | 479,898,175 | 119,974,545 |
Deductible loss | 286,136,558 | 73,596,023 | 247,147,752 | 63,459,305 |
Unpaid bonus | 111,494,802 | 27,873,700 | 184,674,946 | 46,168,736 |
Dismission welfare | 21,088,263 | 5,272,066 | 24,833,512 | 6,208,378 |
Deferred income | 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 |
7.16.2 Un-offset deferred income tax liabilities
Unit: Yuan
Item | Ending Balance | Beginning Balance | ||
Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
Assets appraisal appreciation in business merger under non-common control | 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 |
7.16.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
Item | Ending balance | Beginning balance |
Deductable temporary difference | ||
Deductible loss | 125,159,701 | 132,081,819 |
Total | 125,159,701 | 132,081,819 |
7.16.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year | Ending sum | Beginning sum | 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 | -- |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.17 Other non-current assets
Unit: Yuan
Item | Ending balance | Beginning balance |
Royalty | 184,158,436 | 193,674,320 |
Total | 184,158,436 | 193,674,320 |
7.18 Short-term loans
7.18.1 Classification of short-term loans
Unit: Yuan
Item | Ending balance | Beginning balance |
Pledge loan | ||
Mortgage loan | 59,875,404 | 82,568,222 |
Guaranteed loan | 11,476,342 | 10,677,905 |
Fiduciary loan | 665,831,955 | 661,067,617 |
Total | 737,183,701 | 754,313,744 |
As at June 30, 2020, mortgaged loans were Hacienday Vi?edos Marques del Atrio, S.L.U ("Atrio")factoring of accounts receivable from banks including Banco de Sabadell, S.A. of EUR3,964,000(equivalent of RMB31,557,404 Yuan) (December 31, 2019: RMB54,663,422 Yuan). Mortgaged loanswere Indomita Wine mortgaged USD4,000,000 (equivalent of RMB28,318,000 Yuan) of its fixedassets to BBVA (December 31, 2019: RMB27,904,800 Yuan). Australia Kilikanoon Estate hasguaranteed loans of AUD2,358,621 (equivalent of RMB11,476,342 Yuan) (December 31, 2019:
RMB10,677,905 Yuan).
7.19 Accounts payable
7.19.1 List of accounts payable
Unit: Yuan
Item | Ending balance | Beginning balance |
Accounts payable for materials, etc. | 379,727,980 | 570,252,612 |
Total | 379,727,980 | 570,252,612 |
7.19.2 Explanation of significant accounts payable aged more than one year
As at June 30, 2020, there were no significant accounts payable aged more than one year.
7.20 Contract liabilities
Unit: Yuan
Item | Ending balance | Beginning balance |
Advances from customers | 100,523,260 | 106,734,070 |
Total | 100,523,260 | 106,734,070 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.21 Employee remunerations payable
7.21.1 List of employee remunerations payable
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
1. Short-term remuneration | 208,889,457 | 119,601,171 | 210,105,009 | 118,385,619 |
2. Post-employment welfare – defined contribution plan | 736,147 | 17,329,399 | 17,676,500 | 389,046 |
3. Dismission welfare | 24,833,512 | 441,038 | 4,186,287 | 21,088,263 |
4.Other welfare due within one year | ||||
Total | 234,459,116 | 137,371,608 | 231,967,796 | 139,862,928 |
7.21.2 List of short-term remunerations
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
1. Salaries, bonuses, allowances and subsidies | 212,017,795 | 104,134,847 | 192,207,416 | 123,945,226 |
2. Staff welfare | 2,001,589 | 2,260,811 | 4,169,008 | 93,392 |
3. Social insurance charges | 567,446 | 5,617,673 | 6,121,959 | 63,160 |
Including: Medical insurance | 567,446 | 4,982,116 | 5,486,402 | 63,160 |
Injury insurance | 518,934 | 518,934 | ||
Maternity insurance | 116,623 | 116,623 | ||
4. Housing fund | 14,195 | 5,934,629 | 5,927,978 | 20,846 |
5. Union fee and staff education fee | 1,934,209 | 1,653,211 | 1,678,648 | 1,908,772 |
6. Short-term compensated absences | ||||
7. Short-term profit-sharing plan | ||||
Minus: Those divided into non-current liabilities | 7,645,777 | 7,645,777 | ||
Total | 208,889,457 | 119,601,171 | 210,105,009 | 118,385,619 |
7.21.3 List of defined contribution plan
Unit: Yuan
Item | Beginning balance | Increase | Decrease | Ending balance |
1. Basic endowment insurance | 736,137 | 16,573,752 | 16,920,853 | 389,036 |
2. Unemployment insurance | 10 | 755,647 | 755,647 | 10 |
3. Enterprise annuity payment | ||||
Total | 736,147 | 17,329,399 | 17,676,500 | 389,046 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.21.4 Dismission welfare
Unit: Yuan
Item | Beginning balance | Increase | Decrease | Ending balance |
1. Compensation for server of labor relation | 441,038 | 441,038 | ||
2. Compensation for early retirement | 24,833,512 | 3,745,249 | 21,088,263 | |
Total | 24,833,512 | 441,038 | 4,186,287 | 21,088,263 |
7.22 Taxes and dues payable
Unit: Yuan
Item | Ending balance | Beginning balance |
Value added tax | 24,637,073 | 88,590,035 |
Consumption tax | 11,731,929 | 48,497,550 |
Corporate income tax | 104,903,260 | 216,958,309 |
Individual income tax | 391,707 | 840,997 |
Urban maintenance and construction tax | 2,194,198 | 6,731,772 |
Education surcharges | 1,589,510 | 4,858,904 |
Urban land use tax | 2,343,608 | 2,216,390 |
Other | 6,780,990 | 6,476,014 |
Total | 154,572,275 | 375,169,971 |
7.23 Other payables
Unit: Yuan
Item | Ending balance | Beginning balance |
Interest payable | 2,167,287 | 758,047 |
Dividends payable | 480,819,925 | 1,366,559 |
Other payables | 310,046,401 | 448,407,879 |
Total | 793,033,613 | 450,532,485 |
7.23.1 Interest payable
Unit: Yuan
Item | Ending balance | Beginning balance |
Interest of long-term loans with interest paid by installment and principal paid on maturity | ||
Interest of corporate bonds | ||
Interest payable of short-term loans | 2,167,287 | 758,047 |
Interest of preferred shares\ perpetual bonds divided into financial liabilities | ||
Other | ||
Total | 2,167,287 | 758,047 |
7.23.2 Dividends payable
Unit: Yuan
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item | Ending balance | Beginning balance |
Ordinary stock dividends | 479,824,800 | |
Preferred stock dividends/sustainable debt dividends divided into equity instruments | ||
Other | 995,125 | 1,366,559 |
Total | 480,819,925 | 1,366,559 |
7.23.3 Other payables
7.23.3.1 Other payables listed by nature
Unit: Yuan
Item | Ending balance | Beginning balance |
Dealer’s deposit payable | 167,342,614 | 164,649,995 |
Equipment purchase and construction costs payable | 56,776,519 | 72,004,009 |
Transportation charges payable | 14,043,603 | 31,842,443 |
Advertisement expenses payable | 1,107,877 | 90,741,404 |
Employee cash deposit | 619,282 | 1,866,765 |
Supplier’s deposit payable | 15,231,550 | 13,990,900 |
Contracting fees payable | 11,788,691 | 16,997,685 |
Other | 43,136,265 | 56,314,678 |
Total | 310,046,401 | 448,407,879 |
7.24 Non-current liabilities due within one year
Unit: Yuan
Item | Ending balance | Beginning balance |
Long-term loans due within one year | 64,996,064 | 116,826,221 |
Bonds payable due within one year | ||
Long-term accounts payable due within one year | 34,000,000 | 34,000,000 |
Lease liabilities due within one year | ||
Total | 98,996,064 | 150,826,221 |
7.25 Long-term loans
7.25.1 Classification of long-term loans
Unit: Yuan
Item | Ending balance | Beginning balance |
Mortgage loan | 2,475,871 | 3,875,992 |
Guaranteed loan | 102,138,400 | 105,093,000 |
Fiduciary loan | 178,995,129 | 136,749,730 |
Less: Long-term loans due within one year | 64,996,064 | 116,826,221 |
Total | 218,613,336 | 128,892,501 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.As at June 30, 2020, credit loans were EUR22,484,000 borrowed by Atrio from Bankia, BancoSantander, BBVA and Caja Rural de Navarr etc. (equivalent of RMB178,995,124 Yuan) (December31, 2019: RMB136,749,730 Yuan). Mortgaged loans (RMB) were long-term borrowings ofRMB43,750,000 Yuan of the R&D Centre, a subsidiary of the Company (December 31, 2019:
RMB56,250,000 Yuan). Australia Kilikanoon Estate has borrowed AUD12,000,000(equivalent ofRMB58,388,400 Yuan) (December 31, 2019: RMB48,843,000 Yuan) from ANZ Bank and itsguaranteed by the Company. Mortgaged loans were borrowings of EUR311,000 (equivalent ofRMB2,475,871 Yuan) form Popular Espa?ol, pledged with its land which valued EUR2,929,628(equivalent of RMB23,322,769 Yuan) (December 31, 2019: RMB3,875,992 Yuan).
7.26 Long-term accounts payable
Item | Ending balance | Beginning balance |
Long-term accounts payable | 167,000,000 | 191,000,000 |
Special accounts payable | ||
Total | 167,000,000 | 191,000,000 |
7.26.1 Long-term accounts payable listed by nature
Unit: Yuan
Item | Ending balance | Beginning balance |
Agricultural Development Fund of China ("CADF") | 201,000,000 | 225,000,000 |
Less: Long-term payables due within one year | 34,000,000 | 34,000,000 |
Balance of long-term payables | 167,000,000 | 191,000,000 |
In 2016, Agricultural Development Fund invested RMB 305,000,000 Yuan in the Research,Development & Manufacture Company, accounting for 37.9% of the registered capital. According tothe investment agreement, it is agreed that Agricultural Development Fund will take back theinvestment fund in ten years and obtain fixed income according to year, which is 1.2% of theremaining principal. Except for the above fixed income, the Agricultural Development Fund shall notenjoy other profits of the Research, Development & Manufacture Company or bear the losses of theResearch, Development & Manufacture Company. Accordingly, the investment of the AgriculturalDevelopment Fund in the Research, Development & Manufacture Company is equity investmentnominally, which is debt investment (finance discount interest loan) in deed. The Group included theinvestment of the Agricultural Development Fund in long-term accounts payable measured byamortized cost. From January to June 2020, the Group gave back the principal of RMB 24,000,000Yuan. Refer to Note 7.51 for details of mortgaged and pledged assets.
7.27 Deferred income
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance | Forming reason |
Governmental subsidy | 70,701,288 | 445,536 | 9,373,916 | 61,772,908 | |
Total | 70,701,288 | 445,536 | 9,373,916 | 61,772,908 | -- |
Projects related to governmental subsidy
Unit: Yuan
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item of liabilities | Beginning balance | Amount of subsidy newly increased in this period | Amount included in non-operating revenue in this period | Amount included in other income in this period | Amount offset the cost expenses | Other changes | Ending balance | Related to assets/income |
Industrial development support project | 28,700,000 | 2,050,000 | 26,650,000 | Related to assets | ||||
Xinjiang industrial revitalisation and technological transformation project | 14,220,000 | 711,000 | 13,509,000 | Related to assets | ||||
Fixed asset investment reward of Shihezi Chateau project | 4,716,600 | 1,140,000 | 3,576,600 | Related to assets | ||||
Shandong Peninsula Blue Economic Area construction funds | 4,000,000 | 1,000,000 | 3,000,000 | Related to assets | ||||
Special government grant for infrastructure | 3,180,000 | 530,000 | 2,650,000 | Related to assets | ||||
Raw wine fermentation project | 1,869,600 | 717,450 | 1,152,150 | Related to assets | ||||
Wine fermentation capacity construction (Huanren) project | 2,800,000 | 200,000 | 2,600,000 | Related to assets | ||||
Engineering technology transformation of information system project | 2,320,000 | 290,000 | 2,030,000 | Related to assets | ||||
Liquor electronic tracking project | 1,858,203 | 333,526 | 1,524,677 | Related to assets | ||||
Infrastructure construction project | 350,000 | 445,536 | 64,378 | 731,158 | Related to assets | |||
Special fund for efficient water-saving irrigation project | 1,877,000 | 481,000 | 1,396,000 | Related to assets | ||||
Subsidy for economic and energy-saving technological transformation projects | 898,100 | 64,150 | 833,950 | Related to assets | ||||
Wine industry development project | 372,000 | 93,000 | 279,000 | Related to assets | ||||
Subsidy for mechanic development of Penglai Daliuhang Base | 265,397 | 265,397 | Related to assets | |||||
Coal subsidy | 201,500 | 13,000 | 188,500 | Related to assets | ||||
Cross-border e-commerce project | 839,958 | 124,611 | 715,347 | Related to income | ||||
Travelling development fund subsidy project | 560,000 | 560,000 | Related to income | |||||
Water pollution control project fund | 92,930 | 56,801 | 36,129 | Related to income | ||||
Subsidy for boiler reconstruction and demolition | 80,000 | 5,000 | 75,000 | Related to income |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Special funds for the development of enterprises | 1,500,000 | 1,500,000 | Related to income | |||||
Total | 70,701,288 | 445,536 | 9,373,916 | 61,772,908 |
7.28 Other non-current liabilities
Unit: Yuan
Item | Ending balance | Beginning balance |
Employee remunerations payable | 7,645,777 | 7,645,777 |
Total | 7,645,777 | 7,645,777 |
As at June 30, 2020, the employee remunerations payable referred to the job security deposit deductedfrom the year-end bonus of the employees higher than sales manager of the Company in proportion,which will be paid from 2021 to 2023 as predicted.
7.29 Share capital
Unit: Yuan
Beginning balance | Increase or decrease (+,-) in this period | Ending balance | |||||
Newly issued shares | Allocated shares | Share transferred from accumulation fund | Other | Subtotal | |||
Total shares | 685,464,000 | 685,464,000 |
7.30 Capital reserves
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
Capital premium (Share capital premium) | 559,133,834 | 559,133,834 | ||
Other capital reserves | 5,916,588 | 5,916,588 | ||
Total | 565,050,422 | 565,050,422 |
7.31 Other comprehensive income
Unit: Yuan
Item | Beginning balance | Amount incurred in this period | Ending balance | |||||
Amount incurred before income tax in this period | Minus: amount included in other comprehensive income before and transferred to profit or loss in this period | Minus: amount included in other comprehensive income before and transferred to retained earnings in this period | Minus: income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | |||
1. Other comprehensive income |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item | Beginning balance | Amount incurred in this period | Ending balance | |||||
Amount incurred before income tax in this period | Minus: amount included in other comprehensive income before and transferred to profit or loss in this period | Minus: amount included in other comprehensive income before and transferred to retained earnings in this period | Minus: income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | |||
not to be reclassified into profit and loss later | ||||||||
Including: Changes after remeasuring and resetting the benefit plans | ||||||||
Other comprehensive income not to be reclassified into profit and loss under equity law | ||||||||
Changes in the fair value of other investments in equity instruments | ||||||||
Changes in the fair value of the enterprise's own credit risk | ||||||||
2. Other comprehensive income to be reclassified into profit and loss later | -4,235,583 | -5,765,822 | -5,006,653 | -759,169 | -9,242,236 | |||
Including: Other comprehensive income to be reclassified into profit and loss under equity law | ||||||||
Changes in the fair value of other debt investments | ||||||||
Amount of financial assets reclassified into other comprehensive income | ||||||||
Provision for credit impairment of other credit investments | ||||||||
Provision for cash-flow hedge | ||||||||
Difference in translation of Foreign Currency Financial Statement | -4,235,583 | -5,765,822 | -5,006,653 | -759,169 | -9,242,236 | |||
Total other comprehensive income | -4,235,583 | -5,765,822 | -5,006,653 | -759,169 | -9,242,236 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.32 Surplus reserves
Unit: Yuan
Item | Beginning balance | Increase in this period | Decrease in this period | Ending balance |
Legal surplus reserves | 342,732,000 | 342,732,000 | ||
Free surplus reserves | ||||
Reserve fund | ||||
Enterprise expansion fund | ||||
Other | ||||
Total | 342,732,000 | 342,732,000 |
7.33 Undistributed profit
Unit: Yuan
Item | Ending balance | Beginning balance |
Undistributed profit at the end of prior period before adjustment | 8,719,899,359 | 8,008,982,547 |
Total Undistributed profit at the beginning of the period before adjustment (increase listed with+ , and decrease listed with -) | -7,540,537 | |
Undistributed profit at the beginning of the period after adjustment | 8,719,899,359 | 8,001,442,010 |
Plus: Net profit for owner of the parent company | 307,035,572 | 1,129,735,749 |
Minus: Drawn legal surplus | ||
Drawn free surplus | ||
Drawn common risk provision | ||
Common dividend payable | 479,824,800 | 411,278,400 |
Common dividend transferred to share capital | ||
Undistributed profit at the end of period | 8,547,110,131 | 8,719,899,359 |
7.34 Operating income and operating cost
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period | ||
Income | Cost | Income | Cost | |
Main business | 1,390,770,376 | 569,872,959 | 2,541,459,605 | 927,958,197 |
Other business | 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 |
7.35 Taxes and surcharges
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Consumption tax | 49,392,779 | 68,699,658 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Urban maintenance and construction tax | 9,360,101 | 18,763,626 |
Education surcharges | 6,787,564 | 13,670,717 |
Building tax | 13,946,836 | 14,184,915 |
Land use tax | 5,823,990 | 5,478,045 |
Stamp duty | 2,276,001 | 1,504,356 |
Other | 516,222 | 1,249,531 |
Total | 88,103,493 | 123,550,848 |
7.36 Selling expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Marketing expenses | 54,684,262 | 268,185,487 |
Employee remunerations | 95,885,996 | 130,725,779 |
Transportation expenses | 53,735,626 | |
Trademark use fees | 8,953,500 | |
Storage and lease expenses | 17,922,792 | 24,274,917 |
Depreciation expenses | 25,656,686 | 20,476,637 |
Advertisement expenses | 14,084,571 | 26,920,257 |
Conference expenses | 2,447,005 | 8,945,999 |
Design & production expenses | 1,590,960 | 2,365,761 |
Service charges | 3,608,458 | 11,484,614 |
Travel expenses | 8,356,075 | 11,822,548 |
Water, electricity and gas charges | 4,080,146 | 7,697,325 |
Office & postage costs | 1,840,823 | 2,801,706 |
Packing expenses | 2,540,043 | 3,971,486 |
Public security & clean-keeping expenses | 1,854,437 | 2,214,479 |
Business entertainment expenses | 589,472 | 1,763,307 |
Other | 6,435,820 | 14,584,873 |
Total | 250,531,046 | 591,970,801 |
7.37 Management expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Employee remunerations | 27,711,146 | 62,572,295 |
Depreciation expenses | 36,815,081 | 31,887,697 |
Contracting expenses | 6,687,337 | 7,178,106 |
Repair expenses | 4,750,072 | 8,253,897 |
Office expenses | 5,617,017 | 10,177,651 |
Amortization expenses | 10,475,529 | 7,677,849 |
Afforestation fees | 6,910,323 | 7,682,946 |
Safe production costs | 2,506,681 | 2,357,016 |
Rental expenses | 4,659,247 | 4,766,202 |
Business entertainment expenses | 1,480,213 | 2,631,383 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Public security & clean-keeping expenses | 2,957,475 | 3,356,435 |
Travel expenses | 424,412 | 2,971,468 |
Other | 2,075,336 | 4,039,367 |
Total | 113,069,869 | 155,552,312 |
7.38 R&D expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
R&D expenses | 1,805,988 | 2,706,811 |
Total | 1,805,988 | 2,706,811 |
7.39 Financial expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Interest expenditure | 14,891,310 | 9,812,560 |
Minus: Interest income | 6,088,281 | 4,606,417 |
Plus: Commission charges | 2,182,502 | 1,271,831 |
Exchange gain or loss | 975,571 | 2,311,609 |
Total | 11,961,102 | 8,789,583 |
7.40 Other income
Unit: Yuan
Source of other income | Amount incurred in this period | Amount incurred in prior period |
Supporting fund for industrial development | 2,050,000 | 2,050,000 |
Reward for investment in fixed assets | 1,140,000 | 1,140,000 |
Special fund for construction of peninsula blue economic zone | 1,000,000 | 1,000,000 |
Other – related to assets | 3,497,505 | 3,082,627 |
Special fund for supporting corporate development | 38,279,579 | 51,633,350 |
Other – related to income | 3,813,147 | 5,305,915 |
Total | 49,780,231 | 64,211,892 |
7.41 Investment income
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Investment income from long-term equity by equity method | -1,170,685 | |
Investment income from disposal of long-term equity | ||
Investment income gained from trading financial assets during the holding period | ||
Investment income gained from disposal of trading financial assets | ||
Dividend income gained from other equity instruments |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item | Amount incurred in this period | Amount incurred in prior period |
during the holding period | ||
Gains generated from the remaining equity remeasured as per fair value after the loss of control | ||
Interest income gained from equity inverstment during the holding period | ||
Interest income gained from other equity inverstments during the holding period | ||
Investment income gained from disposal of other equity inverstments | ||
Total | -1,170,685 |
7.42 Loss on impairment of credit
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Loss on bad debts of accounts receivable | 100,835 | -765,935 |
Total | 100,835 | -765,935 |
7.43 Loss on impairment of assets
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
1. Loss on bad debts | ||
2. Inventory falling price loss and loss on impairment of contrct execution cost | 4,242,813 | 6,148,729 |
3. Loss on impairment of long-term equity investment | ||
4. Loss on impairment of investment real estate | ||
5. Loss on impairment of fixed assets | ||
6. Loss on impairment of engineering materials | ||
7. Loss on impairment of construction in progress | ||
8. Loss on impairment of productive biological assets | ||
9. Loss on impairment of oil and gas assets | ||
10. Loss on impairment of intangible assets | ||
11. Loss on impairment of goodwill | ||
12. Other | ||
Total | 4,242,813 | 6,148,729 |
7.44 Income from asset disposal
Unit: Yuan
Source of income from asset disposal | Amount incurred in this period | Amount incurred in prior period |
Income from disposal of fixed assets | 39,641 | 1,138 |
Total | 39,641 | 1,138 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.45 Non-operating income
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period | Amount included in the current non-recurring profits/losses |
Gains on debt recombination | |||
Gains on exchange of non-monetary assets | |||
Grains on donations | |||
Governmental subsidy | |||
Other | 4,682,230 | 3,575,914 | 4,682,230 |
Total | 4,682,230 | 3,575,914 | 4,682,230 |
7.46 Non-operating expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period | Amount included in the current non-recurring profits/losses |
Loss on debt recombination | |||
Loss on exchange of non-monetary assets | |||
Donation | 500,000 | 500,000 | |
Fine, penalty and overdue fine paid due to violation of laws and administrative regulations | 31,123 | 10,811 | 31,123 |
Other | 336,150 | 153,239 | 336,150 |
Total | 867,273 | 164,050 | 867,273 |
7.47 Income tax expenses
7.47.1 List of income tax expenses
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Current income tax expenses | 59,475,646 | 161,779,976 |
Deferred income tax expenses | 50,214,323 | 48,501,602 |
Total | 109,689,969 | 210,281,578 |
7.47.2 Adjustment process of accounting profit and income tax expenses
Unit: Yuan
Item | Amount incurred in this period |
Total profit | 418,292,409 |
Income tax expenses calculated according to the legal/applicable tax rate | 104,573,102 |
Influence of different tax rates applicable to subsidiary | 1,151,306 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item | Amount incurred in this period |
Influence of income tax in the term before adjustment | 155,763 |
Influence of nontaxable income | |
Influence of non-deductible costs, expenses and losses | 1,878,100 |
Influence of deductible loss from use of unconfirmed deferred income tax assets in prior period | |
Influence of deductible temporary difference or deductible loss of unconfirmed deferred income tax assets in this period | 1,931,698 |
Income tax expense | 109,689,969 |
7.48 Other comprehensive income
Refer to Note 7.31 for details.
7.49 Items of cash flow statement
7.49.1 Other cash received related to operating activities
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Governmental subsidy income | 40,851,851 | 62,580,748 |
Interest income | 3,865,811 | 2,835,438 |
Net amercement income | 269,694 | 1,225,511 |
Other | 3,186,178 | 1,143,923 |
Total | 48,173,534 | 67,785,620 |
7.49.2 Other cash paid related to operating activities
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Selling expenses | 218,880,805 | 348,849,996 |
Administrative expenses | 37,212,155 | 41,017,612 |
Other | 3,049,775 | 2,912,859 |
Total | 259,142,735 | 392,780,467 |
7.50 Supplementary information to cash flow statement
7.50.1 Supplementary information to cash flow statement
Unit: Yuan
Supplementary materials | Amount incurred in this period | Amount incurred in prior period |
1. Cash flows from operating activities calculated by adjusting the net profit: | -- | -- |
Net profit | 308,602,440 | 602,178,315 |
Plus: Provision for impairment of assets | -4,343,648 | -5,382,794 |
Depreciation of fixed assets, oil-and-gas assets | 143,241,376 | 155,147,729 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Supplementary materials | Amount incurred in this period | Amount incurred in prior period |
and productive biological assets | ||
Depreciation of right-of-use assets | ||
Amortization of intangible assets | 11,145,536 | 8,438,742 |
Amortization of long-term deferred expenses | 7,613,342 | 6,662,662 |
Losses on disposal of fixed assets, intangible assets and other long-term assets (profit listed with “-”) | -39,641 | -1,138 |
Losses on retirement of fixed assets (profit listed with “-”) | 2,127 | |
Losses on fair value change (profit listed with “-”) | ||
Financial costs (profit listed with “-”) | 13,316,860 | 13,987,879 |
Investment losses (profit listed with “-”) | 1,170,685 | |
Decrease in deferred income tax assets (increase listed with “-”) | 50,602,610 | 50,789,656 |
Increase of deferred income tax liabilities (decrease listed with “-”) | -388,287 | -3,381,035 |
Decrease in inventories (increase listed with “-”) | -52,113,529 | 123,958,750 |
Decrease in operating receivables (increase listed with “-”) | 180,626,835 | -172,662,167 |
Increase in operating payable (decrease listed with “-”) | -689,089,527 | -280,260,593 |
Other | ||
Net cash flows from operating activities | -29,652,821 | 499,476,006 |
2. Significant investment and financing activities not involving cash deposit and withdrawal: | -- | -- |
Debt transferred into assets | ||
Convertible corporate bond due within 1 year | ||
Fixed assets under financing lease | ||
3. Net changes of cash and cash equivalent: | -- | -- |
Ending balance of cash | 1,300,790,389 | 1,573,727,077 |
Minus: Beginning balance of cash | 1,365,772,675 | 1,206,860,334 |
Plus: Ending balance of cash equivalent | ||
Minus: Beginning balance of cash equivalent | ||
Net increase amount of cash and cash equivalent | -64,982,286 | 366,866,743 |
7.50.2 Composition of cash and cash equivalents
Unit: Yuan
Item | Ending balance | Beginning balance |
1. Cash | 1,300,790,389 | 1,365,772,675 |
Including: Cash on hand | 38,910 | 59,975 |
Bank deposits on demand | 1,300,751,479 | 1,365,712,700 |
Other monetary capital on demand | ||
Due from central bank available for payment | ||
Due from the industry | ||
Inter-bank lending | ||
2. Cash equivalents |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item | Ending balance | Beginning balance |
Including: Bond investment due within three months | ||
3. Balance of cash and cash equivalents at the end of period | 1,300,790,389 | 1,365,772,675 |
Including: Restricted use of parent company or subsidiaries in the group |
7.51 Assets with ownership or use right restrictions
Item | Ending book value | Reason for restriction |
Monetary capital | 94,216,666 | Loan deposit, L/C deposit, frozen balance of Alipay, housing fund and guaranty money for deposit in unit card |
Bills receivable | 31,557,404 | Pledge of short-term loans |
Fixed assets | 338,237,400 | Pledge of short-term loans, long-term loans and long-term accounts payable |
Intangible assets | 209,707,945 | Pledge of long-term accounts payable |
Total | 673,719,415 | -- |
8. Changes in scope of consolidation
Nil
9. Equity in other entities
9.1 Equity in the subsidiaries
9.1.1 Constitution of enterprise group
Name of subsidiary | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
Direct | Indirect | |||||
Xinjiang Tianzhu Wine Co., Ltd. (“Xinajing Tianzhu”) | Shihezi, Xinjiang, China | Shihezi, Xinjiang, China | Manufacturing | 60% | Acquired from a business combination under non-common control | |
Etablissements Roullet Fransac (“Roullet Fransac”) | Cognac, France | Cognac, France | Trading | 100% | Acquired from a business combination under non-common control | |
Dicot Partners, S.L (“Dicot”) | Navarre, Spain | Navarre, Spain | Sales | 75% | Acquired from a business combination under non-common control | |
Vi?a Indómita,S.A.,Vi?a Dos Andes,S.A., and Bodegas Santa Alicia SpA. (“Chile Indomita Wine Group”) | Santiago, Chile | Santiago, Chile | Sales | 85% | Acquired by establishment or investment | |
Kilikanoon Estate Pty Ltd (“Australia Kilikanoon Estate”) | Adelaide, Australia | Adelaide, Australia | Sales | 82.50% | Acquired from a business combination under non-common control | |
Beijing Changyu Sales and Distribution Co., Ltd | Beijing, China | Beijing, China | Sales | 100% | Acquired by establishment or |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Name of subsidiary | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
Direct | Indirect | |||||
("Beijing Sales") | investment | |||||
Yantai Kylin Packaging Co., Ltd. ("Kylin Packaging") | Yantai, Shandong, China | Yantai, Shandong, China | Manufacturing | 100% | Acquired by establishment or investment | |
Yantai Chateau Changyu-Castel Co., Ltd ("Chateau Changyu") (b) | Yantai, Shandong, China | Yantai, Shandong, China | Manufacturing | 70% | Acquired by establishment or investment | |
Changyu (Jingyang) Wine Co., Ltd. ("Jingyang Wine") | Xianyang, Shaanxi, China | Xianyang, Shaanxi, China | Manufacturing | 90% | 10% | Acquired by establishment or investment |
Yantai Changyu Pioneer Wine Sales Co., Ltd. ("Sales Company") | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100% | Acquired by establishment or investment | |
Langfang Development Zone Castel-Changyu Wine Co., Ltd ("Langfang Castel") | Langfang, Hebei, China | Langfang, Hebei, China | Manufacturing | 39% | 10% | Acquired by establishment or investment |
Changyu (Jingyang) Wine Sales Co., Ltd. ("Jingyang Sales") | Xianyang, Shaanxi, China | Xianyang, Shaanxi, China | Sales | 10% | 90% | Acquired by establishment or investment |
Langfang Changyu Pioneer Wine Sales Co., Ltd ("Langfang Sales") | Langfang, Hebei, China | Langfang, Hebei, China | Sales | 10% | 90% | Acquired by establishment or investment |
Shanghai Changyu Sales and Distribution Co., Ltd. ("Shanghai Sales") | Shanghai, China | Shanghai, China | Sales | 30% | 70% | Acquired by establishment or investment |
Beijing Changyu AFIP Agriculture development Co., Ltd ("Agriculture Development") | Miyun, Beijing, China | Miyun, Beijing, China | Sales | 100% | Acquired by establishment or investment | |
Beijing Chateau Changyu AFIP Global Co., Ltd. (“AFIP”) (c) | Beijing, China | Beijing, China | Manufacturing | 91.53% | Acquired by establishment or investment | |
Yantai Changyu Wine Sales Co., Ltd. ("Wines Sales") | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 90% | 10% | Acquired by establishment or investment |
Yantai Changyu Pioneer International Co., Ltd. ("Pioneer International") | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 70% | 30% | Acquired by establishment or investment |
Hangzhou Changyu Wine Sales Co., Ltd. ("Hangzhou Changyu") | Hangzhou, Zhejiang, China | Hangzhou, Zhejiang, China | Sales | 100% | Acquired by establishment or investment | |
Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”) | Yinchuan, Ningxia, China | Ningxia, China | Planting | 100% | Acquired by establishment or investment | |
Huanren Changyu National Wines Sales Co., Ltd. ("National Wines") | Benxi, Liaoning, China | Benxi, Liaoning, China | Sales | 100% | Acquired by establishment or investment | |
Liaoning Changyu Golden Icewine Valley Co., Ltd. ("Golden Icewine Valley") (d) | Benxi, Liaoning, China | Benxi, Liaoning, China | Manufacturing | 51% | Acquired by establishment or investment |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Name of subsidiary | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
Direct | Indirect | |||||
Yantai Development Zone Changyu Trading Co., Ltd. ("Development Zone Trading") | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100% | Acquired by establishment or investment | |
Yantai Changyu Fushan Trading Company ("Fushan Trading") | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100% | Acquired by establishment or investment | |
Beijing AFIP Meeting Center ("Meeting Center") | Miyun, Beijing, China | Miyun, Beijing, China | Services | 100% | Acquired by establishment or investment | |
Beijing AFIP Tourism and Culture ("AFIP Tourism") | Miyun, Beijing, China | Miyun, Beijing, China | Tourism | 100% | Acquired by establishment or investment | |
Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”) | Ningxia, China | Ningxia, China | Manufacturing | 100% | Acquired by establishment or investment | |
Yantai Changyu Chateau Tinlot Co., Ltd. ("Chateau Tinlot") | Yantai, Shandong, China | Yantai, Shandong, China | Manufacturing | 65% | 35% | Acquired by establishment or investment |
Qing Tong Xia Changyu Wine Marketing Ltd. ("Qing Tong Xia Sales") | Ningxia, China | Ningxia, China | Sales | 100% | Acquired by establishment or investment | |
Xinjiang Chateau Changyu Baron Balboa Co., Ltd. (“Chateau Shihezi”) | Shihezi, Xinjiang, China | Shihezi, Xinjiang, China | Manufacturing | 100% | Acquired by establishment or investment | |
Ningxia Chateau Changyu Moser XV Co., Ltd. (“Chateau Ningxia”) | Yinchuan, Ningxia, China | Yinchuan, Ningxia, China | Manufacturing | 100% | Acquired by establishment or investment | |
Shaanxi Chateau Changyu Rena Co., Ltd. (“Chateau Chang’an”) | Xianyang, Shaanxi, China | Xianyang, Shaanxi, China | Manufacturing | 100% | Acquired by establishment or investment | |
Yantai Changyu Wine Research & Development Centre Co., Ltd. (“R&D Centre”) (e) | Yantai, Shandong, China | Yantai, Shandong, China | Manufacturing | 72% | Acquired by establishment or investment | |
Changyu (HuanRen) Wine Co., Ltd ("Huan Ren Wine") | Benxi, Liaoning, China | Benxi, Liaoning, China | Manufacturing | 100% | Acquired by establishment or investment | |
Xinjiang Changyu Sales Co., Ltd ("Xinjiang Sales") | Shihezi, Xinjiang, China | Shihezi, Xinjiang, China | Sales | 100% | Acquired by establishment or investment | |
Ningxia Changyu Trading Co., Ltd ("Ningxia Trading") | Yinchuan, Ningxia, China | Yinchuan, Ningxia, China | Sales | 100% | Acquired by establishment or investment | |
Shaanxi Changyu Rena Wine Sales Co., Ltd ("Shaanxi Sales") | Xianyang, Shaanxi, China | Xianyang, Shaanxi, China | Sales | 100% | Acquired by establishment or investment | |
Penglai Changyu Wine Sales Co., Ltd ("Penglai Wine") | Penglai, Shandong, China | Penglai, Shandong, China | Sales | 100% | Acquired by establishment or investment | |
Laizhou Changyu Wine Sales Co., Ltd ("Laizhou Sales") | Laizhou, Shandong, China | Laizhou, Shandong, China | Sales | 100% | Acquired by establishment or investment |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Name of subsidiary | Principal business location | Registration place | Business nature | Proportion of shareholding | Acquisition mode | |
Direct | Indirect | |||||
Francs Champs Participations SAS (“Francs Champs”) | Cognac, France | Cognac, France | Investment and trading | 100% | Acquired by establishment or investment | |
Beijing Retailing Co. Ltd ("Beijing Retailing") | Beijing, China | Beijing, China | Sales | 100% | Acquired by establishment or investment | |
Tianjin Changyu Pioneer Sales Co., Ltd ("Tianjin Pioneer") (a) | Tianjin, China | Tianjin, China | Sales | 100% | Acquired by establishment or investment | |
Beijing Changyu Pioneer Sales Co., Ltd ("Beijing Pioneer") (a) | Beijing, China | Beijing, China | Sales | 100% | Acquired by establishment or investment | |
Yantai Roullet Fransac Wine Sales Co., Ltd. (“Yantai Roullet Fransac”) | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100% | Acquired by establishment or investment | |
Guangzhou Changyu Pioneer Sales Co., Ltd ("Guangzhou Pioneer") (a) | Guanghzou, Guangdong, China | Guanghzou, Guangdong, China | Sales | 100% | Acquired by establishment or investment | |
Yantai Changyu Wine Sales Co., Ltd. ("Wine Sales Company") | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100% | Acquired by establishment or investment | |
Shaanxi Chateau Changyu Rena Tourism Co., Ltd ("Chateau Tourism") | Xianxin, Shaanxi, China | Xianxin, Shaanxi, China | Tourism | 100% | Acquired by establishment or investment | |
Longkou Changyu Wine Sales Co., Ltd ("Longkou Sales") | Yantai, Shandong, China | Yantai, Shandong, China | Sales | 100% | Acquired by establishment or investment |
Explanation for difference between the proportion of shareholding and proportion of voting power inthe subsidiaries:
(a) Companies above were deregistered in 2020.
(b) Chateau Changyu is a Sino-foreign joint venture established by the Company and a foreigninvestor, accounting for 70% of Changyu Chateau's equity interest. Through agreement arrangement,the Company has the full power to control Changyu Chateau's strategic operating, investing andfinancing policies. The agreement arrangement will be terminated on December 31, 2022.
(c) AFIP is a limited liability company jointly established by the Company and Yantai De’an andBeijing Qinglang. In June 2019, Yantai Dean transferred 1.31% of its equity to Yantai Changyu.Afterthe equity change, the Company holds 91.53% of its equity. Through agreement arrangement, theCompany has the full power to control AFIP's strategic operating, investing and financing policies.The agreement arrangement will be terminated on September 2, 2024.
(d) Icewine Valley is a Sino-foreign joint venture established by the Company and a foreign investor,whose 51% of the shares are held by the Company. The Company exercises full control over theoperation, investment and financing policies of Icewine Valley by contract arrangement. The contractarrangement will expire on December 31, 2021.
(e) The Research, Development & Manufacture Company is a joint venture established by the
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.Company and Agricultural Development Fund, whose 72% of the shares were held by the Companyon December 31, 2019. As stated in Note 7.27, the Company exercises full control over the operation,investment and financing policies of the Research, Development & Manufacture Company by contractarrangement. The contract arrangement will expire on May 22, 2026. Up to June 30, 2020, theremaining investment of the Agricultural Development Fund accounted for 28.67% of the registeredcapital.
9.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
Name of subsidiary | Shareholding proportion of minority shareholders | Profit/loss attributable to minority shareholders in this period | Other comprehensive income attributable to minority shareholders in this period | Dividend declared to be distributed to minority shareholders in this period | Balance of minority shareholder’s interest at the end of period |
Xinjiang Tianzhu | 40% | -1,268,453 | 46,315,685 | ||
Atrio Group | 25% | 2,735,240 | 538,514 | 995,125 | 34,148,093 |
Changyu Chateau | 30% | 12,365,016 | |||
Langfang Castel | 51% | -605,347 | 19,033,761 | ||
AFIP | 8.47% | 56,409,393 | |||
Icewine Valley | 49% | 33,319,062 | |||
Indomita Wine | 15% | 549,632 | -1,094,853 | 53,385,908 | |
Kilikanoon Estate, Australia | 17.50% | 155,796 | -202,830 | 185,128 | 14,578,260 |
Explanation for difference between the proportion of shareholding and proportion of voting power ofthe minority shareholders in the subsidiaries: See details in Note 9.1.1.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
9.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Name of subsidiary | Ending balance | Beginning balance | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Xinjiang Tianzhu | 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 |
Changyu Chateau | 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 | |
Langfang Castel | 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 | ||
Beijing Chateau | 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 |
Icewine Valley | 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 |
Marques del Atrio | 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 |
Indomita Wine | 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 |
Kilikanoon Estate, 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
Name of subsidiary | Amount incurred in this period | Amount incurred in prior period | ||||||
Operating income | Net profit | Total comprehensive income | Operating cash flow | Operating income | Net profit | Total comprehensive income | Operating cash flow | |
Xinjiang Tianzhu | -3,171,133 | -3,171,133 | -756,855 | -3,001,571 | -1,297,212 | -417,462 | ||
Changyu Chateau | 15,274,042 | -416,327 | -416,327 | 9,574,274 | 24,470,842 | -2,189,871 | -686,874 | 6,946,282 |
Langfang Castel | 116,711 | -1,186,955 | -1,186,955 | -54,248 | -1,474,975 | -821,013 | 25,801 | |
Beijing Chateau | 50,688,043 | -2,919,024 | -2,919,024 | -1,954,062 | 90,339,526 | 12,711,985 | 22,752,823 | 9,667,568 |
Icewine Valley | 7,365,586 | -4,410,928 | -4,410,928 | 733,935 | 19,763,387 | -1,986,710 | -754,056 | 1,903,734 |
Marques del Atrio | 130,982,536 | 10,940,963 | 13,095,017 | -50,830,985 | 129,064,457 | 1,859,381 | -4,084,674 | -23,846,960 |
Indomita Wine | 78,507,227 | 3,664,211 | -3,634,807 | 29,108,449 | 86,818,838 | 3,762,504 | 1,880,687 | -1,725,571 |
Kilikanoon Estate, Australia | 18,928,910 | 890,266 | -268,764 | -6,891,812 | 22,852,809 | -1,509,147 | -4,011,458 | 1,024,962 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
10. Risks related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in the normalcourse of the Group’s operations:
- Credit risk- Liquidity risk- Interest rate risk- Foreign currency risk
The following mainly presents information about the Group’s exposure to each of the above risks andtheir sources, their changes during the year, and the Group’s objectives, policies and processes formeasuring and managing risks, and their changes during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use of financialinstruments and to mitigate the adverse effects that the risks of financial instruments have on theGroup’s financial performance. Based on such objectives, the Group’s risk management policies areestablished to identify and analyse the risks faced by the Group, to set appropriate risk limits andcontrols, and to monitor risks and adherence to limits. Risk management policies and systems arereviewed regularly to reflect changes in market conditions and the Group’s activities.
10.1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the otherparty by failing to discharge an obligation. The Group’s credit risk is primarily attributable to cash atbank, receivables, debt investments and derivative financial instruments entered into for hedgingpurposes. Exposure to these credit risks are monitored by management on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions. Managementdoes not foresee any significant credit risks from these deposits and does not expect that thesefinancial institutions may default and cause losses to the Group.
As at June 30, 2020, the Group's maximum exposure to credit risk which will cause a financial loss tothe Group due to failure to discharge an obligation by the counterparties.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.In order to minimise the credit risk, the Group has adopted a policy to ensure that all sales customershave good credit records. According to the policy of the Group, credit review is required for clientswho require credit transactions. In addition, the Group continuously monitors the balance of accountreceivable to ensure there’s no exposure to significant bad debt risks. For transactions that are notdenominated in the functional currency of the relevant operating unit, the Group does not offer creditterms without the specific approval of the Department of Credit Control in the Group. In addition, theGroup reviews the recoverable amount of each individual trade debt at each balance sheet date toensure that adequate impairment losses are made for irrecoverable amounts. In this regard, themanagement of the Group considers that the Group's credit risk is significantly reduced.
Since the Group trades only with recognised and creditworthy third parties, there is no requirement forcollateral. Concentrations of credit risk are managed by customer/counterparty, by geographical regionand by industry sector. As at June 30, 2020, 20.1% of the Group trade receivables are due from topfive customers (December 31, 2019: 20.3%). There is no collateral or other credit enhancement on thebalance of the trade receivables of the Group.
10.2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that aresettled by delivering cash or another financial asset. The Company and its individual subsidiaries areresponsible for their own cash management, including short-term investment of cash surpluses and theraising of loans to cover expected cash demands (subject to approval by the Company’s board whenthe borrowings exceed certain predetermined levels). The Group’s policy is to regularly monitor itsliquidity requirements and its compliance with lending covenants, to ensure that it maintains sufficientreserves of cash, readily realisable marketable securities and adequate committed lines of fundingfrom major financial institutions to meet its liquidity requirements in the short and longer term.
10.3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to cash flowinterest rate risk and fair value interest risk, respectively. The Group determines the appropriateweightings of the fixed and floating rate interest-bearing instruments based on the current marketconditions and performs regular reviews and monitoring to achieve an appropriate mix of fixed andfloating rate exposure.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
(1) As at June 30, 2020, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: Yuan
Item | June 30, 2020 | December 31, 2019 | ||
Effective interest rate | Amounts | Effective interest rate | Amounts | |
Financial assets | ||||
- Cash at bank | 1.4%-2.75% | 81,200,000 | 1.1%-2.75% | 106,128,600 |
Financial liabilities | ||||
- Short-term loans | 0.35%-4.9% | -187,183,701 | 0.35%-4.9% | -204,313,744 |
- Long-term loans (including the portion due within one year) | 1%-4.275% | -239,859,400 | 1%-2.5% | -189,468,722 |
- Long-term payables (including the portion due within one year) | 1.20% | -201,000,000 | 1.20% | -225,000,000 |
Total | -546,843,101 | -512,653,866 |
Variable rate instruments:
Unit: Yuan
Item | June 30, 2020 | December 31, 2019 | ||
Effective interest rate | Amounts | Effective interest rate | Amounts | |
Financial assets | ||||
- Cash at bank | 0.3%-1.1% | 1,395,007,055 | 0.3%-1.75% | 1,459,595,405 |
Financial liabilities | ||||
- Short-term loans | LPR | -550,000,000 | LPR | -550,000,000 |
- Long-term loans (including the portion due within one year) | 90% of 5-year LPR | -43,750,000 | 90% of 5-year LPR | -56,250,000 |
Total | 801,257,055 | 853,345,405 |
(2) Sensitivity analysis
Management of the Group believes interest rate risk on bank deposit is not significant, therefore doesnot disclose sensitivity analysis for interest rate risk.
As at June 30, 2020, based on assumptions above, it is estimated that a general increase of 50 basispoints in interest rates, with all other variables held constant, would decrease the Group’s equity byRMB1,113,281 Yuan (2019: RMB2,273,438 Yuan), and net profit by RMB1,113,281 Yuan (2019:
RMB2,273,438 Yuan).
The sensitivity analysis above indicates the instantaneous change in the net profit and equity thatwould arise assuming that the change in interest rates had occurred at the balance sheet date and hadbeen applied to re-measure those financial instruments held by the Group which expose the Group to
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
fair value interest rate risk at the balance sheet date. In respect of the exposure to cash flow interestrate risk arising from floating rate non-derivative instruments held by the Group at the balance sheetdate, the impact on the net profit and equity is estimated as an annualised impact on interest expenseor income of such a change in interest rates.
10.4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loans denominatedin foreign currencies other than the functional currency, the Group ensures that its net exposure is keptto an acceptable level by buying or selling foreign currencies at spot rates when necessary to addressshort-term imbalances.
(1) As at June 30, 2020, the Group’s exposure to currency risk arising from recognised assets orliabilities denominated in foreign currencies is presented in the following tables. For presentationpurposes, the amounts of the exposure are shown in Renminbi, translated using the spot rate at thebalance sheet date. Differences resulting from the translation of the financial statements denominatedin foreign currency are excluded.
Unit: Yuan
Item | June 30, 2020 | December 31, 2019 | ||
Balance at foreign currency | Balance at RMB equivalent | Balance at foreign currency | Balance at RMB equivalent | |
Cash at bank and on hand | 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-term loans | 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) Sensitivity analysis
Assuming all other risk variables remained constant, a 5% strengthening of the Renminbi against theUS dollar, Euro and Hong Kong dollar at June 30, 2020 would have impact on the Group’s equity andnet profit by the amount shown below, whose effect is in Renminbi and translated using the spot rate atthe year-end date:
Unit: Yuan
Item | Equity | Net profit |
June 30, 2020 | ||
USD | 2,727,977 | 2,727,9777 |
EUR | -53,391 | -53,391 |
HKD | ||
Total | 2,674,586 | 2,674,586 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
December 31, 2019 | ||
USD | 2,080,417 | 2,080,417 |
EUR | -53,391 | -53,391 |
HKD | -10 | -10 |
Total | 2,027,016 | 2,027,016 |
A 5% weakening of the Renminbi against the US dollar, Euro and Hong Kong dollar at June 30, 2020would have had the equal but opposite effect to the amounts shown above, on the basis that all othervariables remained constant.
11. Fair value disclosure
All financial assets and financial liabilities held by the Group are carried at amounts not materiallydifferent from their fair value at June 30, 2020.
12. Related parties and related transactions
12.1 Particulars of the parent company of the Company
Name of parent company | Registration place | Business nature | Registered capital | Proportion of shareholding of the parent company in the Company | Proportion of voting powers of the parent company in the Company |
Changyu Group Company | Yantai City | Manufacturing industry | 50,000,000 | 50.40% | 50.40% |
From January to June 2020, there was no fluctuation in the registered capital of the parent companyand its share in equity interest and voting right.
12.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 9.
12.3 Information about joint ventures and associates of the Company
Other joint ventures and associates that have related party transactions with the Company during thisperiod or that formed balance when having related party transactions with the Company during theprior period are as follows:
Name of entity | Relationship with the Company |
L&M Holdings | Joint venture of the Group |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
12.4 Particulars of other related parties
Name of other related parties | Relationship between other related parties and the Company |
Yantai Changyu Wine Culture Museum Co., Ltd. (“Wine Culture Museum”) | A company controlled by the same parent company |
Yantai Changyu Window of International Wine City Co. Ltd. (“Window of Wine City”) | A company controlled by the same parent company |
Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) | A company controlled by the same parent company |
Yantai Zhongya Medical Health Wine Co., Ltd. (“Zhongya Medical”) | A company controlled by the same parent company |
Yantai Changyu Cultural Tourism Product Sales Co., Ltd. (“Cultural Sales”) | A company controlled by the same parent company |
Yantai Changyu Cultural Tourism Development Co., Ltd. (“Cultural Development”) | A company controlled by the same parent company |
L&M Holdings | Joint ventures |
Mirefleurs | Subsidiaries of the joint venture |
CHATEAU DE LIVERSAN (“LIVERSAN”) | Subsidiaries of the joint venture |
12.5 Related transactions
12.5.1 Related transactions of purchasing and selling goods and providing and receivingservices
List of purchasing goods/receiving services
Unit: Yuan
Related parties | Related transactions | Amount incurred in this period | Amount incurred in prior period |
God Horse Packing | Purchasing goods | 35,624,517 | 95,990,354 |
Zhongya Medical | Purchasing goods | 574,791 | 6,037,893 |
Wine Culture Museum | Purchasing goods | 5,975,817 | 9,475,159 |
Window of Wine City | Purchasing goods | 1,014,685 | 2,857,130 |
Cultural Sales | Purchasing goods | 3,265,703 | |
Cultural Development | Purchasing goods | 156,616 |
List of selling goods/providing services
Unit: Yuan
Related parties | Related transactions | Amount incurred in this period | Amount incurred in prior period |
Wine Culture Museum | Selling goods | 2,765,314 | 3,377,011 |
Window of Wine City | Selling goods | 1,441,166 | 3,891,101 |
Zhongya Medical | Selling goods | 1,349,021 | 2,559,870 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Related parties | Related transactions | Amount incurred in this period | Amount incurred in prior period |
God Horse Packing | Selling goods | 1,915 | 3,520 |
Cultural Sales | Selling goods | 21,600 | 3,873,204 |
Cultural Development | Selling goods | 1,836,470 | 1,847,727 |
The price of transactions between the Group and the related parties are based on the negotiated price.
12.5.2 Related trusteeship/contracting and mandatory administration/outsourcingNil
12.5.3 Leasing with related parties
The Company as a lessor:
Unit: Yuan
Name of the lessee | Type of leased assets | Rental income recognized in this period | Rental income recognized in prior period |
God Horse Packing | Office building and plant | 746,275 | 742,883 |
Zhongya Medical | Office building | 260,279 |
The Company as a lessee:
Unit: Yuan
Name of the lessor | Type of leased assets | Rent recognized in this period | Rent recognized in prior period |
Changyu Group Company | Office building and plant | 3,595,583 | 3,447,891 |
12.5.4 Related guarantee
Nil
12.5.5 Inter-bank borrowing and lending of related parties
Nil
12.5.6 Asset transfer and debt recombination of related parties
Nil
12.5.7 Other related transactions
Unit: Yuan
Item | Note | Amount incurred in this period | Amount incurred in prior period |
Trademark use fee | (a) | 8,977,248 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.The price of transactions between the Group and the related parties are based on the negotiated price.
12.6 Accounts receivable and payable of the related parties
12.6.1 Accounts receivable
Unit: Yuan
Item | Related parties | Ending balance | Beginning balance | ||
Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
Accounts receivable | Zhongya Medical | 2,005,182 | 67,379 | 4,292,386 | 59,268 |
Accounts receivable | Window of Wine City | 1,610,485 | 22,237 | ||
Other receivable | Changyu Group | 3,775,362 | |||
Other receivables | God Horse Packing | 1,626,800 | 813,400 | ||
Other non-current assets | Changyu Group | 184,158,436 | 193,674,320 | ||
Prepayment | Mirefleurs | 6,429,542 | |||
Prepayment | L&M Holdings | 1,632,941 |
12.6.2 Accounts payable
Unit: Yuan
Item | Related parties | Ending book balance | Beginning book balance |
Accounts payable | God Horse Packing | 37,075,376 | 39,893,538 |
Accounts payable | Zhongya Medical | 4,392,389 | 1,024,310 |
Accounts payable | Wine Culture Museum | 4,874,963 | |
Accounts payable | Window of Wine City | 3,758,054 | |
Accounts payable | Cultural Sales | 297,956 | |
Accounts payable | Cultural Development | 142,610 | |
Other accounts payable | God Horse Packing | 604,000 | 450,000 |
13. Share-based payment
Nil
14. Commitment and contingency
14.1 Significant commitment
Unit: Yuan
Item | Ending balance | Beginning balance |
Making long-term asset commitments | 539,980,000 | 679,980,000 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
14.2 Contingency
As of the balance sheet date, the Group didn’t have any contingency to be disclosed.
15. Matters after balance sheet
15.1 Important non-adjusting events
Nil
15.2 Profit distribution
Unit: Yuan
Profits or dividends to be distributed | 479,824,800 |
Allocated profits or dividends approved to declare upon discussion | 479,824,800 |
15.3 Other statement of events after the balance sheet date
According to the decision of the Shareholders’ Meeting dated May 17, 2020, based on the issuedcapital stock of 685,464,000 shares in 2019, the Company allocated RMB 7 Yuan in cash (includingtax) for every 10 shares to all shareholders with the total cash dividends of RMB 479,824,800 Yuan.Such cash dividends were distributed on July 10, 2020 and July 14, 2020 respectively.
16. Other important matters
Nil
17. Notes on major items in financial statements of the parent company
17.1 Accounts receivable
17.1.1 Accounts receivable disclosed by type
Unit: Yuan
Type | Ending balance | Beginning balance | ||||||||
Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
Amount | Proportion | Amount | Accrued proportion | Amount | Proportion | Amount | Accrued proportion | |||
Accounts receivable for which provision for bad debts is accrued on a single item basis |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Accounts receivable for bad debts is accrued on a combined basis | 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 |
Provision for bad debts accrued on a combined basis:
Unit: Yuan
Name | Ending balance | ||
Book balance | Provision for bad debts | Accrued proportion | |
Amounts due from related parties | 304,238 | 1,978 | 0.7% |
Total | 304,238 | 1,978 | -- |
Disclosed by age:
Unit: Yuan
Age | Ending balance |
Within 1 year (including 1 year) | 304,238 |
1-2 years | |
2-3 years | |
Over 3 years | |
Total | 304,238 |
17.1.2 Provision for bad debts accrued, withdrawn or transferred back in this period
Unit: Yuan
Type | Beginning balance | Changes in t his period | Ending balance | ||
Accrued | Withdrawn or transferred back | Cancelled | |||
Accounts receivable for which provision for bad debts is accrued by credit risk features | 601,610 | 599,632 | 1,978 | ||
Total | 601,610 | 599,632 | 1,978 |
17.1.3 Accounts receivable actually cancelled after verification in this period
Nil
17.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the endingbalance
Unit: Yuan
Unit name | Ending balance of accounts receivable | Proportion in total ending balance of accounts receivable | Ending balance of bad debt reserves |
Zhongya Medicine and Health Care Wine Company | 304,238 | 100% | 1,978 |
Total | 304,238 | 100% |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
17.1.5 Accounts receivable derecognized due to transfer of financial assetsNil
17.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
17.2 Other receivables
Unit: Yuan
Item | Ending balance | Beginning balance |
Interest receivable | 464,614 | 90,355 |
Dividends receivable | 2,985,375 | 200,000,000 |
Other receivables | 275,433,946 | 386,334,603 |
Total | 278,883,935 | 586,424,958 |
17.2.1 Interest receivable
Unit: Yuan
Item | Ending balance | Beginning balance |
Fixed deposit | 464,614 | 90,355 |
Entrusted loan | ||
Bond investment | ||
Total | 464,614 | 90,355 |
17.2.2 Dividends receivable
Unit: Yuan
Item (or the invested unit) | Ending balance | Beginning balance |
Dividends receivable from subsidiaries | 2,985,375 | 200,000,000 |
Total | 2,985,375 | 200,000,000 |
17.2.3 Other receivables
1) Particulars of other receivables classified by nature
Unit: Yuan
Nature | Ending book balance | Beginning book balance |
Accounts receivable from subsidiaries | 272,221,693 | 385,328,319 |
Accounts receivable from related parties | 2,359,130 | 813,440 |
Other | 853,123 | 192,844 |
Total | 275,433,946 | 386,334,603 |
2) Disclosed by age
Unit: Yuan
Age | Ending balance |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Age | Ending balance |
Within 1 year (including 1 year) | 275,413,946 |
1-2 years | |
2-3 years | |
More than 3 years | 20,000 |
Total | 275,433,946 |
3) Provision for bad debts accrued, withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan.
4) Accounts receivable actually cancelled after verification in this period
Nil
5) Other accounts receivable collected by the borrower of top 5 units ranked by the ending balance
Unit: Yuan
Unit | Nature of fund | Ending balance | Age | Percentage in the total ending balance of other accounts receivable | Ending balance of provision for bad debts |
Sales Company | Internal incomings and outgoings | 236,837,358 | Within 1 year | 86.0% | |
R&D Company | Internal incomings and outgoings | 19,536,550 | Within 1 year | 7.1% | |
Longkou Sales | Internal incomings and outgoings | 9,692,960 | Within 1 year | 3.5% | |
God Horse Packaging | Internal incomings and outgoings | 1,626,800 | Within 1 year | 0.6% | |
Golden Icewine Valley | Internal incomings and outgoings | 774,832 | Within 1 year | 0.3% | |
Total | -- | 268,468,500 | -- | 97.5% |
6) Accounts receivable related to governmental subsidy
Nil
7) Other accounts receivable derecognized due to transfer of financial assetsNil
8) Other accounts receivable transferred and included in assets and liabilitiesNil
17.3 Long-term equity investment
Unit: Yuan
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item | Ending balance | Beginning balance | ||||
Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
Investment in subsidiaries | 7,437,422,621 | 7,437,422,621 | 7,432,422,621 | 7,432,422,621 | ||
Investment in associated enterprises and joint ventures | ||||||
Total | 7,437,422,621 | 7,437,422,621 | 7,432,422,621 | 7,432,422,621 |
17.3.1 Investment in subsidiaries
Unit: Yuan
Invested unit | Beginning balance (book value) | Increase and decrease in this period | Ending balance (book value) | Ending balance of provision for impairment | |||
Increase in investment | Decrease in investment | Provision for impairment accrued | Others | ||||
Xinjiang Tianzhu | 60,000,000 | 60,000,000 | |||||
Kylin Packaging | 23,176,063 | 23,176,063 | |||||
Changyu Chateau | 28,968,100 | 28,968,100 | |||||
Pioneer International | 3,500,000 | 3,500,000 | |||||
Ningxia Growing | 36,573,247 | 36,573,247 | |||||
National Wine | 2,000,000 | 2,000,000 | |||||
Icewine Valley | 30,440,500 | 30,440,500 | |||||
Beijing Chateau | 588,389,444 | 588,389,444 | |||||
Sales Company | 7,200,000 | 7,200,000 | |||||
Langfang Sales | 100,000 | 100,000 | |||||
Langfang Castel | 19,835,730 | 19,835,730 | |||||
Wine Sales | 4,500,000 | 4,500,000 | |||||
Shanghai Marketing | 300,000 | 300,000 | |||||
Beijing Marketing | 850,000 | 850,000 | |||||
Jingyang Sales | 100,000 | 100,000 | |||||
Jingyang Wine | 900,000 | 900,000 | |||||
Ningxia Wine | 222,309,388 | 222,309,388 | |||||
Ningxia Chateau | 453,463,500 | 453,463,500 | |||||
Chateau Tinlot | 212,039,586 | 212,039,586 | |||||
Shihezi Chateau | 812,019,770 | 812,019,770 | |||||
Chang’an Chateau | 803,892,258 | 803,892,258 | |||||
Research, Development & Manufacture Company | 3,288,906,445 | 3,288,906,445 | |||||
Huanren Wine | 22,200,000 | 22,200,000 | |||||
Wine Sales Company | 5,000,000 | 5,000,000 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Invested unit | Beginning balance (book value) | Increase and decrease in this period | Ending balance (book value) | Ending balance of provision for impairment | |||
Increase in investment | Decrease in investment | Provision for impairment accrued | Others | ||||
Francs Champs | 236,025,404 | 236,025,404 | |||||
Marques del Atrio | 190,150,544 | 190,150,544 | |||||
Indomita Wine | 274,248,114 | 274,248,114 | |||||
Kilikanoon Estate, Australia | 110,334,528 | 110,334,528 | |||||
Total | 7,432,422,621 | 5,000,000 | 7,437,422,621 |
17.4 Operating income and operating cost
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period | ||
Income | Cost | Income | Cost | |
Main business | 132,995,774 | 125,288,367 | 334,207,600 | 292,023,685 |
Other business | 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 |
17.5 Investment income
Unit: Yuan
Item | Amount incurred in this period | Amount incurred in prior period |
Income from long-term equity investment by cost method | 87,474,604 | 264,221,755 |
Income from long-term equity investment by equity method | ||
Investment income from disposal of long-term equity investment | ||
Investment income of the financial assets measured at their fair values and the variation of which is recorded into the current profits and losses during the holding period | ||
Investment income gained from disposal of the financial assets measured at their fair values and the variation of which is recorded into the current profits and losses | ||
Investment income of held-to-maturity investment during the holding period | ||
Investment income of financial assets held for sale during the holding period | ||
Investment income gained from disposal of financial assets held for sale |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item | Amount incurred in this period | Amount incurred in prior period |
Gains generated from the remaining equity remeasured as per fair value after the loss of control | ||
Total | 87,474,604 | 264,221,755 |
18. Supplementary materials
18.1 List of non-current profits/losses in this period
Unit: Yuan
Item | Amount | Remark |
Profits/losses on disposal of non-current assets | 39,641 | |
Tax return, deduction and exemption approved beyond the authority or without formal approval document |
49,780,231 | ||
Payment for use of funds by non-financial enterprises included in the current profits/losses | ||
Income obtained when the investment cost obtained by the enterprise from subsidiaries, joint-run business and joint venture is less than the fair value of the net identifiable assets obtained from the invested units when the investment is made | ||
Profits/losses on exchange of non-monetary assets | ||
Profits/losses on entrusting other people to make investment or manage assets | ||
Asset impairment provision accrued due to force majeure such as natural disaster | ||
Profits/losses on debt restructuring | ||
Enterprise reorganization expenses such as staffing expenditure and integration expenses, etc. | ||
Profits/losses on those beyond the fair value generated from transactions with unfair transaction price | ||
Current net profits/losses on subsidiaries acquired from a business combination under common control from the beginning to the consolidation date |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item | Amount | Remark |
Profits/losses on contingencies irrelated to the normal business of the Company | ||
Profits/losses on changes of fair value of tradable financial assets, derivative financial assets, tradable financial liabilities and derivative financial liabilities, and investment income from disposal of tradable financial assets, derivative financial assets, tradable financial liabilities, derivative financial liabilities and other investment in creditor's rights, excluding effective hedging operations relevant to the normal business of the Company | ||
Transfer-back of accounts receivable with single impairment test and provision for impairment of contract assets | ||
Profits/losses on external entrusted loans | ||
Profits/losses on fair value changes of investment real estate with fair value mode for follow-up measurement | ||
Influence of the one-time adjustment of the current profits/losses in accordance with tax and accounting laws and regulations on the current profits/losses | ||
Trustee fee income from entrusted operation | ||
Other non-operating income and expenditure besides the above items | 3,814,957 | |
Other profits/losses conforming to the definition of non-current profits/losses | ||
Minus: Influenced amount of income tax | 13,221,932 | |
Influenced amount of minority shareholders’ equity | 144,174 | |
Total | 40,268,723 | -- |
18.2 Return on net assets and earnings per share
Profit incurred in this period | Weighted average return on net assets | Earnings per share | |
Basic EPS (Yuan/Share) | Diluted EPS (Yuan/Share) | ||
Net profit attributable to common shareholders of the Company | 2.96% | 0.45 | 0.45 |
Net profit attributable to common shareholders of the Company deducting non-incidental profits/losses | 2.57% | 0.39 | 0.39 |
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
18.3 Accounting data difference under domestic and foreign accounting standard
18.3.1 Net profits & net assets difference disclosed in the financial report according tothe international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits | Net assets | |||
Amount incurred in this period | Amount incurred in prior period | Ending balance | Beginning balance | |
In accordance with the Chinese accounting standard | 307,035,572 | 603,403,789 | 10,131,863,831 | 10,308,910,198 |
Item & amount adjusted in accordance with the international accounting standard: | ||||
In accordance with the international accounting standard | 307,035,572 | 603,403,789 | 10,131,863,831 | 10,308,910,198 |