张裕B：2024年年度审计报告(英文版)

Yantai Changyu Pioneer Wine Co., Ltd.

ENGLISH TRANSLATION OF FINANCIAL STATEMENTSFOR THE YEAR 1 JANUARY 2024 TO 31 DECEMBER 2024IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH

TRANSLATION, THE CHINESE VERSION WILL PREVAIL

Page 1 of 6

AUDITOR’S REPORT

KPMG Huazhen Shen Zi No. 2507683

All Shareholders of Yantai Changyu Pioneer Wine Company Limited:

Opinion

We have audited the accompanying financial statements of Yantai Changyu Pioneer WineCompany Limited (“Yantai Changyu”), which comprise the consolidated balance sheet andcompany balance sheet as at 31 December 2024, the consolidated income statement andcompany income statement, the consolidated cash flow statement and company cash flowstatement, the consolidated statement of changes in shareholders’ equity and companystatement of changes in shareholders’ equity for the year then ended, and notes to thefinancial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects,the consolidated financial position and company financial position of Yantai Changyu as at 31December 2024, and of its consolidated financial performance and company financialperformance and its consolidated cash flows and company cash flows for the year thenended in accordance with Accounting Standards for Business Enterprises issued by theMinistry of Finance of the People’s Republic of China.

Basis for Opinion

We conducted our audit in accordance with China Standards on Auditing for Certified PublicAccountants (“CSAs”). Our responsibilities under those standards are further described inthe Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.We are independent of Yantai Changyu in accordance with the China Code of Ethics forCertified Public Accountants (“the Code”), and we have fulfilled our other ethicalresponsibilities in accordance with the Code. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Page 2 of 6

AUDITOR’S REPORT (continued)

KPMG Huazhen Shen Zi No. 2507683

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of mostsignificance in our audit of the financial statements for the year ended 31 December 2024.These matters were addressed in the context of our audit of the financial statements as awhole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters.

Recognition of Sales Revenue from Distributors
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 25 and “V. Notes to the consolidated financial statements” 37.
The Key Audit Matters	How the Matter was Addressed in Our Audit
The principal activities of Yantai Changyu and its subsidiaries (hereinafter referred to as “Yantai Changyu Group”) include manufacture and sales of wine, brandy and sparkling wine. The revenue of Yantai Changyu Group is mainly derived from sales of distributors. All distributor transaction terms adopt the unified transaction terms formulated by Yantai Changyu Group. Based on the contractual agreement and the business arrangement, Yantai Changyu sells products to distributors and the transfer of product ownership is completed and the revenue is recognised when the goods are delivered to distributors and signed for acceptance. As revenue is one of the key performance indicators of Yantai Changyu Group, there is a risk that management may recognise revenue earlier or later in order to meet specific performance targets or expectations, therefore, the risk of cut-off misstatement arising from distributors’ sales revenue is identified as a key audit matter.	Our audit procedures to evaluate revenue recognition of sales revenue from distributors included the following: ? Understand and evaluate the Management’s design and operation effectiveness of key internal controls related to distributor sales revenue recognition; ? Selecting the sales contracts Yantai Changyu signed with distributors in order to examine whether Yantai Changyu has adopted the unified transaction terms, and evaluate whether the accounting policy of revenue recognition meets the requirements of the Accounting Standards for Business Enterprises; ? On a sampling basis, reconcile the revenue recorded for the year to relevant supporting files such as relevant orders and signed delivery notes, etc. to evaluate whether revenue is recognised in accordance with the accounting policy of Yantai Changyu;

Page 3 of 6

AUDITOR’S REPORT (continued)

KPMG Huazhen Shen Zi No. 2507683

Key Audit Matters (continued)

Recognition of Sales Revenue from Distributors (continued)
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 25 and “V. Notes to the consolidated financial statements” 37.
The Key Audit Matters	How the Matter was Addressed in Our Audit
	? On a sampling basis, reconcile the sales transaction before and after balance sheet date to relevant supporting files such as relevant orders, signed delivery notes, etc. to evaluate whether revenue is recognised in appropriate accounting period; ? Check the sales record after the balance sheet date to identify significant sales returns and check relevant supporting files (If applicable) in order to evaluate whether relevant revenue is recorded in the appropriate accounting period; ? Select revenue accounting entries that meet specific risk criteria and check related supporting documents.

Page 4 of 6

AUDITOR’S REPORT (continued)

KPMG Huazhen Shen Zi No. 2507683

Other Information

Management of Yantai Changyu is responsible for the other information. The otherinformation comprises all the information included in the 2024 annual report, other than thefinancial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatementof this other information, we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

Management is responsible for the preparation and fair presentation of the financialstatements in accordance with the Accounting Standards for Business Enterprises, and forthe design, implementation and maintenance of such internal control necessary to enablethat the financial statements are free from material misstatement, whether due to fraud orerror.

In preparing the financial statements, management is responsible for assessing YantaiChangyu’s ability to continue as a going concern, disclosing, as applicable, matters related togoing concern and using the going concern basis of accounting unless management eitherintends to liquidate Yantai Changyu or to cease operations, or has no realistic alternative butto do so.

Those charged with governance are responsible for overseeing Yantai Changyu’s financialreporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements asa whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with CSAs willalways detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonablybe expected to influence the economic decisions of users taken on the basis of thesefinancial statements.

Page 5 of 6

AUDITOR’S REPORT (continued)

KPMG Huazhen Shen Zi No. 2507683

Auditor’s Responsibilities for the Audit of the Financial Statements (continued)

As part of an audit in accordance with CSAs, we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements,

whether due to fraud or error, design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.

(2) Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the management.

(4) Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significant doubt on YantaiChangyu’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up tothe date of our auditor’s report. However, future events or conditions may cause YantaiChangyu to cease to continue as a going concern.

(5) Evaluate the overall presentation, structure and content of the financial statements,

including the disclosures, and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

(6) Obtain sufficient appropriate audit evidence regarding the financial information of the

entities or business activities within the Group to express our audit opinion on thefinancial statements. We are responsible for the direction, supervision andperformance of the Group audit. We remain solely responsible for our audit opinion.

Page 6 of 6

AUDITOR’S REPORT (continued)

KPMG Huazhen Shen Zi No. 2507683

Auditor’s Responsibilities for the Audit of the Financial Statements (continued)

We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand, where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine thosematters that were of most significance in the audit of the financial statements of the year andare therefore the key audit matters. We describe these matters in our auditor’s report unlesslaw or regulation precludes public disclosure about the matter or when, in extremely rarecircumstances, we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.

KPMG Huazhen LLP Certified Public Accountants Registered(Stamp) in the People’s Republic of China

Wang Jia (Engagement Partner)(Signature and stamp)

Beijing, China Jiang Hui(Signature and stamp)

16 April 2025

Yantai Changyu Pioneer Wine Company LimitedConsolidated balance sheetas at 31 December 2024(Expressed in Renminbi Yuan)

	Note	31 December 2024	31 December 2023
Assets
Current assets
Cash at bank and on hand	V.1	1,797,848,130	2,217,693,647
Bills receivable	V.2	1,036,243	1,260,000
Accounts receivable	V.3	270,829,601	382,132,334
Receivables under financing	V.4	230,960,211	408,316,028
Prepayments	V.5	60,631,575	61,497,933
Other receivables	V.6	264,598,394	71,496,276
Inventories	V.7	2,904,070,556	2,765,390,587
Other current assets	V.8	80,383,241	88,368,542
Total current assets		5,610,357,951	5,996,155,347
Non-current assets
Long-term equity investments	V.9	34,864,748	38,285,620
Investment properties	V.10	21,960,451	24,482,831
Fixed assets	V.11	5,551,671,795	5,795,082,569
Construction in progress	V.12	10,177,372	3,323,241
Bearer biological assets	V.13	66,483,964	177,461,983
Right-of-use assets	V.14	71,761,262	121,745,910
Intangible assets	V.15	527,706,383	542,625,776
Goodwill	V.16	101,149,082	107,163,616
Long-term deferred expenses	V.17	298,793,702	306,662,107
Deferred tax assets	V.18	221,993,099	221,518,204
Other non-current assets	V.19	3,554,409	1,760,000
Total non-current assets		6,910,116,267	7,340,111,857
Total assets		12,520,474,218	13,336,267,204

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)

	Note	31 December 2024	31 December 2023
Liabilities and shareholders’ equity
Current liabilities
Short-term loans	V.20	216,140,346	364,981,445
Accounts payable	V.21	417,510,439	473,352,525
Contract liabilities	V.22	128,090,353	175,278,849
Employee benefits payable	V.23	166,704,917	185,331,292
Taxes payable	V.24	189,147,054	274,723,431
Other payables	V.25	398,149,521	555,634,336
Other current liabilities	V.26	40,764,242	44,958,297
Non-current liabilities due within one year	V.27	79,949,769	78,523,993
Total current liabilities		1,636,456,641	2,152,784,168
Non-current liabilities
Long-term loans	V.28	50,637,203	66,616,443
Lease liabilities	V.29	27,542,829	85,038,335
Deferred income	V.30	25,938,817	32,582,734
Deferred tax liabilities	V.18	7,344,165	8,719,729
Total non-current liabilities		111,463,014	192,957,241
Total liabilities		1,747,919,655	2,345,741,409

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)

	Note	31 December 2024	31 December 2023
Liabilities and shareholders’ equity (continued)
Shareholders’ equity
Share capital	V.31	671,823,900	692,249,559
Capital reserve	V.32	482,143,547	651,086,707
Less：Treasury stock	V.33	70,704,426	103,411,919
Other comprehensive income	V.34	(39,714,972)	(14,784,677)
Surplus reserve	V.35	342,732,000	342,732,000
Retained earnings	V.36	9,232,928,370	9,273,629,318
Total equity attributable to shareholders of the Company		10,619,208,419	10,841,500,988
Non-controlling interests		153,346,144	149,024,807
Total shareholders’ equity		10,772,554,563	10,990,525,795
Total liabilities and shareholders’ equity		12,520,474,218	13,336,267,204

These financial statements were approved by the Board of Directors of the Company on16April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany balance sheetas at 31 December 2024(Expressed in Renminbi Yuan)

	Note	31 December 2024	31 December 2023
Assets
Current assets
Cash at bank and on hand		876,557,848	1,242,484,544
Accounts receivable		226,796	5,189,894
Receivables under financing	XVII.1	13,110,297	36,322,019
Prepayments		5,526,029	52,587
Other receivables	XVII.2	952,762,563	576,949,997
Inventories		396,334,804	323,465,919
Other current assets		-	147,187
Total current assets		2,244,518,337	2,184,612,147
Non-current assets		?	?
Long-term equity investments	XVII.3	7,689,232,919	7,648,498,638
Investment properties		21,960,451	24,482,831
Fixed assets		176,158,046	194,601,612
Construction in progress		-	264,175
Bearer biological assets		20,075,933	100,785,279
Right-of-use assets		6,985,971	37,025,896
Intangible assets		69,806,357	72,552,201
Deferred tax assets		2,624,459	2,327,585
Other non-current assets		1,864,430,003	1,934,430,000
Total non-current assets		9,851,274,139	10,014,968,217
Total assets		12,095,792,476	12,199,580,364

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany balance sheetas at 31 December 2024(continued)

(Expressed in Renminbi Yuan)

	Note	31 December 2024	31 December 2023
Liabilities and shareholders’ equity
Current liabilities
Short-term loans		50,000,000	100,000,000
Accounts payable		92,990,317	63,686,113
Employee benefits payable		68,033,360	68,654,350
Taxes payable		2,010,276	6,439,899
Other payables		584,915,573	608,904,995
Non-current liabilities due within one year		2,199,212	3,803,910
Total current liabilities		800,148,738	851,489,267
Non-current liabilities
Lease liabilities		5,115,806	42,380,074
Deferred income		1,398,701	55,718
Total non-current liabilities		6,514,507	42,435,792
Total liabilities		806,663,245	893,925,059

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)

	Note	31 December 2024	31 December 2023
Liabilities and shareholders’ equity (continued)
Shareholders’ equity
Share capital		671,823,900	692,249,559
Capital reserve		519,382,073	687,544,350
Less：Treasury stock		70,704,426	103,411,919
Surplus reserve		342,732,000	342,732,000
Retained earnings		9,825,895,684	9,686,541,315
Total shareholders’ equity		11,289,129,231	11,305,655,305
Total liabilities and shareholders’ equity		12,095,792,476	12,199,580,364

These financial statements were approved by the Board of Directors of the Company on 16April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated income statementfor the year ended 31 December 2024(Expressed in Renminbi Yuan)

	Note	2024	2023
I. Operating income	V.37	3,277,278,347	4,384,764,335
Less: Operating costs	V.37	1,392,602,399	1,786,983,657
Taxes and surcharges	V.38	273,762,629	349,735,571
Selling and distribution expenses	V.39	1,012,980,420	1,239,782,776
General and administrative expenses	V.40	313,911,881	303,990,858
Research and development expenses		19,538,243	17,413,534
Financial expenses	V.41	12,836,073	11,083,459
Including: Interest expenses		34,261,730	35,800,097
Interest income		34,643,667	30,571,465
Add: Other income	V.42	52,613,910	51,523,799
Investment (losses)/income	V.43	(4,420,872)	23,847,450
Including: Losses from investment associates and in joint ventures		(4,420,872)	(712,480)
Credit reversal	V.44	1,818,835	1,397,658
Impairment losses	V.45	(7,465,500)	(13,506,958)
Gain/(losses) from disposal of assets	V.46	132,116,926	(134,133)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated income statementfor the year ended 31 December 2024 (continued)

(Expressed in Renminbi Yuan)

	Note	2024	2023
II. Operating profit		426,310,001	738,902,296
Add: Non-operating income	V.47	4,977,930	11,992,270
Less: Non-operating expenses	V.47	3,733,074	3,428,410
III. Profit before income tax		427,554,857	747,466,156
Less: Income tax expenses	V.48	113,227,572	221,433,447
IV. Net profit		314,327,285	526,032,709
(1) Net profit classified by continuity of operations:		?	?
1. Net profit from continuing operations		314,327,285	526,032,709
2. Net profit from discontinued operations		-	-
(2) Net profit classified by ownership:		?	?
1. Net profit attributable to shareholders of the Company		305,210,999	532,438,907
2. Non-controlling net interests/(losses)		9,116,286	(6,406,198)
V. Other comprehensive income, net of tax		(27,197,923)	9,519,495
(1) Other comprehensive income (net of tax) attributable to shareholders of the Company		(24,930,295)	8,975,561
Translation differences arising from translation of foreign currency financial statements		(24,930,295)	8,975,561
(2) Other comprehensive income (net of tax) attributable to non-controlling interests		(2,267,628)	543,934

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated income statementfor the year ended 31 December 2024 (continued)

(Expressed in Renminbi Yuan)

	Note	2024	2023
VI. Total comprehensive income for the year		287,129,362	535,552,204
(1) Attributable to shareholders of the Company		280,280,704	541,414,468
(2) Attributable to non-controlling interests		6,848,658	(5,862,264)
VII. Earnings per share:		?	?
(1) Basic earnings per share	V.49	0.45	0.78
(2) Diluted earnings per share	V.49	0.45	0.78

These financial statements were approved by the Board of Directors of the Company on 16April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany income statementfor the year ended 31 December 2024

(Expressed in Renminbi Yuan)

	Note	2024	2023
I. Operating income	XVII.4	562,078,771	731,158,954
Less: Operating cost	XVII.4	496,879,337	621,636,564
Taxes and surcharges		18,450,000	26,163,038
General and administrative expenses		68,658,997	60,054,424
Research and development expenses		878,405	1,127,242
Financial net income		(13,673,283)	(2,756,864)
Including: Interest expenses		2,019,519	3,184,460
Interest income		21,038,636	10,213,608
Add: Other income		954,175	3,219,830
Investment income	XVII.5	368,167,007	439,250,529
Credit Impairment losses		(245)	-
Asset Impairment losses		(6,014,534)	(42,274,055)
Proceeds from the disposal of assets		135,896,203	-
II. Operating profit		489,887,921	425,130,854
Add: Non-operating income		1,246,114	386,193
Less: Non-operating expenses		2,409,239	1,258,048

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany income statementfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)

	Note	2024	2023
III. Profit before income tax		488,724,796	424,258,999
Less: Income tax expenses		3,458,480	12,118,898
IV. Net profit		485,266,316	412,140,101
(i) Net profit from continuing operations		485,266,316	412,140,101
(ii) Net profit from discontinued operations		-	-
V. Other comprehensive income, net of tax		-	-
VI. Total comprehensive income for the year		485,266,316	412,140,101

These financial statements were approved by the Board of Directors of the Company on 16April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated cash flow statementfor the year ended 31 December 2024(Expressed in Renminbi Yuan)

	Note	2024	2023
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services		3,537,113,866	4,362,027,268
Refund of taxes		55,276,632	37,827,698
Proceeds from other operating activities	V.50(1)	81,036,973	219,385,622
Sub-total of cash inflows		3,673,427,471	4,619,240,588
Payment for goods and services		1,432,909,914	1,368,282,215
Payment to and for employees		497,180,417	491,419,621
Payment of various taxes		704,434,463	910,748,260
Payment for other operating activities	V.50(1)	641,161,610	675,698,749
Sub-total of cash outflows		3,275,686,404	3,446,148,845
Net cash flows from operating activities	V.51(1)	397,741,067	1,173,091,743
II. Cash flows from investing activities:
Proceeds from disposal of investments	V.50(2)	464,200,000	238,200,000
Investment returns received		4,936,198	3,196,066
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets		42,303,732	10,529,793
Net proceeds from disposal of subsidiaries and other business units		-	20,308,625
Net proceeds from acquisition of subsidiaries and other business units		-	657,049
Sub-total of cash inflows		511,439,930	272,891,533
Payment for acquisition of fixed assets, intangible assets and other long-term assets		94,561,357	132,032,219
Payment for acquisition of investments		289,650,000	464,200,000
Sub-total of cash outflows		384,211,357	596,232,219
Net cash flows from investing activities		127,228,573	(323,340,686)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated cash flow statementfor the year ended 31 December 2024 (continued)

(Expressed in Renminbi Yuan)

	Note	2024	2023
III. Cash flows from financing activities:		?
Proceeds from investors		-	103,411,919
Proceeds from borrowings		507,959,260	573,859,507
Sub-total of cash inflows		507,959,260	677,271,426
Repayments of borrowings		670,128,889	768,253,239
Payment for dividends, profit distributions or interest		377,462,001	341,454,132
Payment for other financing activities	V.50(3)	227,313,486	67,229,123
Sub-total of cash outflows		1,274,904,376	1,176,936,494
Net cash flows from financing activities		(766,945,116)	(499,665,068)
IV. Effect of foreign exchange rate changes on cash and cash equivalents		(3,452,725)	316,163
V. Net (decrease)/increase in cash and cash equivalents	V.51(1)	(245,428,201)	350,402,152
Add: Cash and cash equivalents at the beginning of the year		1,963,155,752	1,612,753,600
VI. Cash and cash equivalents at the end of the year	V.51(2)	1,717,727,551	1,963,155,752

These financial statements were approved by the Board of Directors of the Company on 16April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany cash flow statementfor the year ended 31 December 2024(Expressed in Renminbi Yuan)

	Note	2024	2023
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services		669,302,405	673,455,798
Proceeds from other operating activities		14,799,484	12,473,241
Sub-total of cash inflows		684,101,889	685,929,039
Payment for goods and services		452,049,677	611,290,566
Payment to and for employees		55,724,885	60,646,447
Payment of various taxes		41,659,134	62,523,754
Payment for other operating activities		20,393,900	28,861,990
Sub-total of cash outflows		569,827,596	763,322,757
Net cash flows from operating activities		114,274,293	(77,393,718)
II. Cash flows from investing activities:
Proceeds from disposal of investments		464,200,000	262,833,449
Investment returns received		243,103,205	729,828,424
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets		1,190,693	576,150
Net proceeds from disposal of subsidiaries and other business units		-	17,965,519
Proceeds from borrowings to subsidiaries		140,000,000	10,000,000
Sub-total of cash inflows		848,493,898	1,021,203,542
Payment for acquisition of fixed assets, intangible assets and other long-term assets		5,532,306	7,116,731
Payment for acquisition of investments		288,650,000	478,823,400
Net payment for acquisition of subsidiaries and other business units		65,506,916	5,537,700
Cash paid to subsidiaries		205,200,000	94,230,000
Sub-total of cash outflows		564,889,222	585,707,831
Net cash flows from investing activities		283,604,676	435,495,711

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany cash flow statementfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)

	Note	2024	2023
III. Cash flows from financing activities:
Proceeds from investors		-	103,411,919
Proceeds from borrowings		50,000,000	100,000,000
Sub-total of cash inflows		50,000,000	203,411,919
Repayments of borrowings		100,000,000	100,000,000
Payment for dividends or interest		347,931,466	311,643,260
Payment for other financing activities		190,324,198	4,956,105
Sub-total of cash outflows		638,255,664	416,599,365
Net cash flows from financing activities		(588,255,664)	(213,187,446)
IV. Effect of foreign exchange rate changes on cash and cash equivalents		-?	-
V. Net (decrease)/increase in cash and cash equivalents		(190,376,695)	144,914,547
Add: Cash and cash equivalents at the beginning of the year		988,284,544	843,369,997
VI. Cash and cash equivalents at the end of the year		797,907,849	988,284,544

These financial statements were approved by the Board of Directors of the Company on 16April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated statement of changes in shareholders’ equityfor the year ended 31 December 2024(Expressed in Renminbi Yuan)

	Note	Attributable to shareholders of the Company							Non-controlling interests	Total shareholders’ equity
		Share capital	Capital reserve	Less:Treasury stock	Other comprehensive income	Surplus reserve	Retained earnings	Sub-total
I. Balance at the beginning of the year		692,249,559	651,086,707	(103,411,919)	(14,784,677)	342,732,000	9,273,629,318	10,841,500,988	149,024,807	10,990,525,795
II. Changes in equity during the year		?	?		?	?	?	?	?	?
1. Total comprehensive income		-	-	-	(24,930,295)?	-?	305,210,999?	280,280,704?	6,848,658?	287,129,362?
2. Shareholders’ contributions and decrease of capital
(1). Effects of restricted share incentive plan	V.31	(425,666)	(10,077,952)	32,707,493	-	-	-	22,203,875	-	22,203,875
(2). Acquisition of non-controlling interests	VIII.2	-	(780,883)	-	-	-	-	(780,883)	(1,102,655)	(1,883,538)
(3)Effects of share repurchased	V.32	(19,999,993)	(158,084,325)	-	-	-	-	(178,084,318)	-	(178,084,318)
3. Appropriation of profits		?	?		?	?	?	?	?	?
Distributions to shareholders	V.36	-	-	-	-	-	(345,911,947)	(345,911,947)	(1,424,666)	(347,336,613)
III. Balance at the end of the year		671,823,900	482,143,547	(70,704,426)	(39,714,972)	342,732,000	9,232,928,370	10,619,208,419	153,346,144	10,772,554,563

These financial statements were approved by the Board of Directors of the Company on 16 April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedConsolidated statement of changes in shareholders’ equity (continued)for the year ended 31 December 2023

(Expressed in Renminbi Yuan)

	Note	Attributable to shareholders of the Company							Non-controlling interests	Total shareholders’ equity
		Share capital	Capital reserve	Less:Treasury stock	Other comprehensive income	Surplus reserve	Retained earnings	Sub-total
I. Balance at the beginning of the year		685,464,000	524,968,760	-	(23,760,238)	342,732,000	9,049,649,211	10,579,053,733	246,526,561	10,825,580,294
II. Changes in equity during the year		?	?		?	?	?	?	?	?
1. Total comprehensive income		-	-	-	8,975,561	-	532,438,907	541,414,468	(5,862,264)	535,552,204
2. Shareholders’ contributions and decrease of capital
(1). Effects of restricted share incentive plan	V.31	6,785,559	127,362,115	(103,411,919)	-	-	-	30,735,755	-	30,735,755
(2). Acquisition of non-controlling interests	VIII.2	-	(1,244,168)	-	-	-	-	(1,244,168)	(31,502,609)	(32,746,777)
3. Appropriation of profits		?	?		?	?	?	?	?	?
Distributions to shareholders	V.36	-	-	-	-	-	(308,458,800)	(308,458,800)	(1,538,316)	(309,997,116)
4. Others
Disposal of equities in subsidiaries		-	-	-	-	-	-	-	(58,598,565)	(58,598,565)
III. Balance at the end of the year		692,249,559	651,086,707	(103,411,919)	(14,784,677)	342,732,000	9,273,629,318	10,841,500,988	149,024,807	10,990,525,795

These financial statements were approved by the Board of Directors of the Company on 16 April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany statement of changes in shareholders’ equityfor the year ended 31 December 2024

(Expressed in Renminbi Yuan)

	Note	Share capital	Capital reserve	Less:Treasury stock	Surplus reserve	Retained earnings	Total shareholders’ equity
I. Balance at the beginning of the year		692,249,559	687,544,350	(103,411,919)	342,732,000	9,686,541,315	11,305,655,305
II. Changes in equity during the year		?	?		?	?	?
1. Total comprehensive income		-?	-?	-	-?	485,266,316	485,266,316
2. Contributions by owners
(1) Effects of restricted share incentive plan		(425,666)	(10,077,952)	32,707,493	-?	-?	22,203,875
(2) Effects of share repurchased		(19,999,993)	(158,084,325)	-?	-?	-?	(178,084,318)
3. Appropriation of profits		?	?		?	?	?
Distributions to shareholders		-?	-?	-?	-?	(345,911,947)	(345,911,947)
III. Balance at the end of the year		671,823,900	519,382,073	(70,704,426)	342,732,000	9,825,895,684	11,289,129,231

These financial statements were approved by the Board of Directors of the Company on 16April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedCompany statement of changes in shareholders’ equityfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

	Note	Share capital	Capital reserve	Less:Treasury stock	Surplus reserve	Retained earnings	Total shareholders’ equity
I. Balance at the beginning of the year		685,464,000	560,182,235	-	342,732,000	9,582,860,014	11,171,238,249
II. Changes in equity during the year		?	?		?	?	?
1. Total comprehensive income		-	-	-	-	412,140,101	412,140,101
2. Contribution by owners
(1) Effects of restricted share incentive plan		6,785,559	127,362,115	(103,411,919)	-	-	30,735,755
3. Appropriation of profits		?	?		?	?	?
Distributions to shareholders		-	-	-	-	(308,458,800)	(308,458,800)
III. Balance at the end of the year		692,249,559	687,544,350	(103,411,919)	342,732,000	9,686,541,315	11,305,655,305

These financial statements were approved by the Board of Directors of the Company on 16April 2025. .

Zhou Hongjiang Legal Representative		Jiang Jianxun The person in charge of accounting affairs		Guo Cuimei The head of the accounting department		(Company stamp)
(Signature and stamp)		(Signature and stamp)		(Signature and stamp)

The notes on pages 20 to 115 form part of these financial statements.

Yantai Changyu Pioneer Wine Company LimitedNotes to the financial statements

(Expressed in Renminbi Yuan unless otherwise indicated)

I. Company status

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 thePeople’s Republic of China (the “PRC”) in a reorganisation carried out by Yantai ChangyuGroup Co., Ltd. (“Changyu Group”), in which Changyu Group Company injected certainassets and liabilities in relation to the wine, brandy, and sparkling wine production and salesbusinesses to the Company. The Company and its subsidiaries (the “Group”) are principallyengaged in the production and sales of wine, brandy, sparkling wine, grape growing andacquisition, as well as travel resource development, etc.. Registration place of the Companyis Yantai, Shandong. Headquarter of the Company is located at No. 56 Da Ma Lu, ZhifuDistrict, Yantai, Shandong, PRC.

As at 31 December 2024 the total shares issued by the Company amounts to 671,823,900shares. Please refer to Note V. 31 in detail.

The holding company of the Group is Changyu Group Company, which is jointly controlled byYantai GuoFeng Investment Holding Ltd., ILLVA SARONNO HOLDING SPA, InternationalFinance Corporation and Yantai Yuhua Investment and Development Company Limited.

The financial statements have been authorised by the board of directors on 16 April 2025.According to the Company’s articles of association, the financial statements will be reviewedby shareholders on the shareholder’s meeting.

For consolidation scope of the year, please refer to Note VIII “Equity in other entities” indetail.

II. Basis of preparation

The financial statements have been prepared on the going concern basis.

III. Significant accounting policies and accounting estimates

1 Statement of compliance

The financial statements have been prepared in accordance with the requirements ofAccounting Standards for Business Enterprises or referred to as China Accounting Standards(“CAS”) issued by the MOF. These financial statements present truly and completely theconsolidated financial position and financial position of the Company as at 31 December2024, and the consolidated financial performance and financial performance and theconsolidated cash flows and cash flows of the Company for the year then ended.

These financial statements also comply with the disclosure requirements of “Regulation onthe Preparation of Information Disclosures by Companies Issuing Securities, No. 15: GeneralRequirements for Financial Reports” as revised by the China Securities RegulatoryCommission (“CSRC”) in 2024.

2 Accounting period

The accounting period is from 1 January to 31 December.

3 Operating cycle

The Company takes the period from the acquisition of assets for processing to until theultimate realisation of cash or cash equivalents as a normal operating cycle. The operatingcycle of the Company is 12 months.

4 Functional currency

Renminbi (“RMB”) is the currency of the primary economic environment in which theCompany and its domestic subsidiaries operate. Therefore, the Company and its domesticsubsidiaries choose RMB as their functional currency. Overseas subsidiaries of theCompany adopt Euro, Chilean Peso and Australian Dollar as their functional currencies onthe basis of the primary economic environment in which they operate. The Company adoptsRMB to prepare its financial statements. The foreign currency financial statements ofoverseas subsidiaries have been translated based on the accounting policy set out in NoteIII.9 in preparing these financial statements.

5 Method used to determine the materiality threshold and the basis for selection

Item	Materiality threshold
Significant other payables/accounts payable with ageing of more than one year	Amount of the individual other payables/accounts payable with ageing of more than 1 year exceeds 0.5% of the Group’s total liabilities
Significant construction projects in progress	Carrying amount of the individual construction in progress exceeds 0.5% of the Group’s total non-current assets
Significant non-wholly-owned subsidiaries	Carrying amount of net assets attributable to non-controlling shareholders of the non-wholly-owned subsidiaries exceeds 0.5% of the Group’s net assets
Significant joint arrangements or associates	The carrying amount of long-term equity investments of an individual joint arrangement or an associate exceeds 0.5% of the Group’s net assets
Significant investing and financing activities not requiring the use of cash	Amount of the individual cash flow exceeds exceeds 0.5% of the Group’s total assets

6 Accounting treatments for business combinations involving entities under common control

and not under common control

A transaction constitutes a business combination when the Group obtains control of one ormore entities (or a group of assets or net assets). Business combination is classified as

either business combinations involving enterprises under common control or businesscombinations not involving enterprises under common control.

For a transaction not involving enterprises under common control, the acquirer determineswhether acquired set of assets constitute a business. The Group may elect to apply thesimplified assessment method, the concentration test, to determine whether an acquired setof assets is not a business. If the concentration test is met and the set of assets isdetermined not to be a business, no further assessment is needed. If the concentration testis not met, the Group shall perform the assessment according to the guidance on thedetermination of a business.

When the set of assets the group acquired does not constitute a business, acquisition costsshould be allocated to each identifiable assets and liabilities at their acquisition?date fairvalues. It is not required to apply the accounting of business combination described asbelow.

(1) Business combinations involving entities under common control

A business combination involving entities under common control is a business combination inwhich all of the combining entities are ultimately controlled by the same party or parties bothbefore and after the business combination, and that control is not transitory. The assetsacquired and liabilities assumed are measured based on their carrying amounts in theconsolidated financial statements of the ultimate controlling party at the combination date.The difference between the carrying amount shares of the net assets acquired and theconsideration paid for the combination (or the total par value of shares issued) is adjustedagainst share premium in the capital reserve, with any excess adjusted against the surplusreserves and retained earnings sequentially. Any costs directly attributable to thecombination are recognised in profit or loss when incurred. The combination date is the dateon which one combining entity obtains control of other combining entities.

(2) Business combinations involving entities not under common control

A business combination involving entities not under common control is a businesscombination in which all of the combining entities are not ultimately controlled by the sameparty or parties both before and after the business combination. Where (1) the aggregate ofthe acquisition-date fair value of assets transferred (including the acquirer’s previously heldequity interest in the acquiree), liabilities incurred or assumed, and equity securities issuedby the acquirer, in exchange for control of the acquiree, exceeds (2) the acquirer’s interest inthe acquisition-date fair value of the acquiree’s identifiable net assets, after considering theimpact of relevant deferred income tax, the difference is recognised as goodwill (see NoteIII.19). If (1) is less than (2), the difference is recognised in profit or loss for the currentperiod. Other acquisition-related costs are expensed when incurred. The acquiree’sidentifiable asset, liabilities and contingent liabilities, if the recognition criteria are met, arerecognised by the Group at their acquisition-date fair value. The acquisition date is the dateon which the acquirer obtains control of the acquiree.

For a business combination involving entities not under common control and achieved instages, the Group remeasures its previously-held equity interest in the acquiree to itsacquisition-date fair value and recognises any resulting difference between the fair value andthe carrying amount as investment income or other comprehensive income for the currentperiod. In addition, any amount recognised in other comprehensive income that may bereclassified to profit or loss, in prior reporting periods relating to the previously-held equityinterest, and any other changes in the owners’ equity under equity accounting, are

transferred to investment income in the period in which the acquisition occurs (see NoteIII.12(2)(b)). If equity interests of the acquiree held before acquisition-date were equityinstrument investments measured at fair value through other comprehensive income, othercomprehensive income recognised shall be moved to retained earnings on acquisition-date.

7 Criteria of control and preparation of consolidated financial statements

(1) General principles

The scope of consolidated financial statements is based on control and the consolidatedfinancial statements comprise the Company and its subsidiaries. Control exists when theinvestor has all of following: power over the investee; exposure, or rights, to variable returnsfrom its involvement with the investee and has the ability to affect those returns through itspower over the investee. When assessing whether the Group has power, only substantiverights (held by the Group and other parties) are considered. The financial position, financialperformance and cash flows of subsidiaries are included in the consolidated financialstatements from the date that control commences until the date that control ceases. Non-controlling interests are presented separately in the consolidated balance sheet withinshareholders’ equity. Net profit or loss attributable to non-controlling shareholders ispresented separately in the consolidated income statement below the net profit line item.Total comprehensive income attributable to non-controlling shareholders is presentedseparately in the consolidated income statement below the total comprehensive income lineitem.

When the amount of loss for the current period attributable to the non-controllingshareholders of a subsidiary exceeds the non-controlling shareholders’ share of the openingowners’ equity of the subsidiary, the excess is still allocated against the non-controllinginterests.

When the accounting period or accounting policies of a subsidiary are different from those ofthe Company, the Company makes necessary adjustments to the financial statements of thesubsidiary based on the Company’s own accounting period or accounting policies. Intra-group balances and transactions, and any unrealised profit or loss arising from intra-grouptransactions, are eliminated when preparing the consolidated financial statements.Unrealised losses resulting from intra-group transactions are eliminated in the same way asunrealised gains, unless they represent impairment losses that are recognised in thefinancial statements.

(2) Subsidiaries acquired through a business combination

Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities under common control, the financial statements of thesubsidiary are included in the consolidated financial statements based on the carryingamounts of the assets and liabilities of the subsidiary in the financial statements of theultimate controlling party as if the combination had occurred at the date that the ultimatecontrolling party first obtained control. The opening balances and the comparative figures ofthe consolidated financial statements are also restated.

Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities not under common control, the identifiable assets and liabilitiesof the acquired subsidiaries are included in the scope of consolidation from the date thatcontrol commences, based on the fair value of those identifiable assets and liabilities at theacquisition date.

(3) Disposal of subsidiaries

When the Group loses control over a subsidiary, any resulting disposal gains or losses arerecognised as investment income for the current period. The remaining equity investment isre-measured at its fair value at the date when control is lost, any resulting gains or losses arealso recognised as investment income for the current period.

When the Group loses control of a subsidiary in multiple transactions in which it disposes ofits long-term equity investment in the subsidiary in stages, the following are considered todetermine whether the Group should account for the multiple transactions as a bundledtransaction:

- arrangements are entered into at the same time or in contemplation of each other;- arrangements work together to achieve an overall commercial effect;- the occurrence of one arrangement is dependent on the occurrence of at least one other

arrangement;- 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, thetransactions conducted before the loss of control of the subsidiary are accounted for inaccordance with the accounting policy for partial disposal of equity investment in subsidiarieswhere control is retained (see Note III.7(4)).

If each of the multiple transactions forms part of a bundled transaction which eventuallyresults in the loss of control in the subsidiary, these multiple transactions are accounted foras a single transaction. In the consolidated financial statements, the difference between theconsideration received and the corresponding proportion of the subsidiary’s net assets(calculated continuously from the acquisition date) in each transaction prior to the loss ofcontrol shall be recognised in other comprehensive income and transferred to profit or losswhen the parent eventually loses control of the subsidiary.

(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 incontrol, the difference between the proportion interests of the subsidiary’s net assets beingacquired or disposed and the amount of the consideration paid or received is adjusted to thecapital reserve (share premium) in the consolidated balance sheet, with any excess adjustedto the surplus reserves and retained earnings sequentially.

8 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw ondemand, and short-term, highly liquid investments that are readily convertible into knownamounts of cash and are subject to an insignificant risk of change in value.

9 Foreign currency transactions and translation of foreign currency financial statements

When the Group receives capital in foreign currencies from investors, the capital is translatedto Renminbi at the spot exchange rate at the date of the receipt. Other foreign currencytransactions are, on initial recognition, translated to Renminbi at the spot exchange rates.

Monetary items denominated in foreign currencies are translated to Renminbi at the spotexchange rate at the balance sheet date. The resulting exchange differences are generallyrecognised in profit or loss, unless they arise from the re-translation of the principal andinterest of specific borrowings for the acquisition and construction of qualifying assets (seeNote III. 16). Non-monetary items that are measured at historical cost in foreign currenciesare translated to Renminbi using the exchange rate at the transaction date.

In translating the financial statements of a foreign operation, assets and liabilities of foreignoperation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items, excluding retained earnings and the translation differences in othercomprehensive income, are translated to Renminbi at the spot exchange rates at thetransaction dates. Income and expenses in the income statement are translated to Renminbiat the spot exchange rates at the transaction dates. The resulting translation differences arerecognised in other comprehensive income. The translation differences accumulated in othercomprehensive income with respect to a foreign operation are transferred to profit or loss inthe period when the foreign operation is disposed.

10 Financial instruments

Financial instruments include cash at bank and on hand, investments in debt and equitysecurities other than those classified as long-term equity investments (see Note III.12),receivables, payables, and borrowings and share capital.

(1) Recognition and initial measurement of financial assets and financial liabilities

A financial asset or financial liability is recognised in the balance sheet when the Groupbecomes a party to the contractual provisions of a financial instrument.

A financial assets and financial liabilities is measured initially at fair value. For financialassets and financial liabilities at fair value through profit or loss, any related directlyattributable transaction costs are charged to profit or loss; for other categories of financialassets and financial liabilities, any related directly attributable transaction costs are includedin their initial costs. A trade receivable, without significant financing component or practicalexpedient applied for one year or less contracts, is initially measured at the transaction pricein accordance with Note III.25.

(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 whicha financial asset is managed and its contractual cash flow characteristics. On initialrecognition, a financial asset is classified as measured at amortised cost, at fair valuethrough other comprehensive income (“FVOCI”), or at fair value through profit or loss(“FVTPL”).

Financial assets are not reclassified subsequent to their initial recognition unless theGroup changes its business model for managing financial assets in which case allaffected financial assets are reclassified on the first day of the first reporting periodfollowing the change in the business model.

A financial asset is measured at amortised cost if it meets both of the followingconditions and is not designated as at FVTPL:

- it is held within a business model whose objective is to hold assets to collect

contractual cash flows; and- its contractual terms give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions andis not designated as at FVTPL:

- it is held within a business model whose objective is achieved by both collecting

contractual cash flows and selling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group mayirrevocably elect to present subsequent changes in the investment’s fair value in othercomprehensive income. This election is made on an investment-by-investment basis.The instrument meets the definition of equity from the perspective of the issuer.

All financial assets not classified as measured at amortised cost or FVOCI asdescribed above are measured at FVTPL. On initial recognition, the Group mayirrevocably designate a financial asset that otherwise meets the requirements to bemeasured at amortised cost or at FVOCI as at FVTPL if doing so eliminates orsignificantly reduces an accounting mismatch that would otherwise arise.

The business model refers to how the Group manages its financial assets in order togenerate cash flows. That is, the Group’s business model determines whether cashflows will result from collecting contractual cash flows, selling financial assets or both.The Group determines the business model for managing the financial assets accordingto the facts and based on the specific business objective for managing the financialassets determined by the Group’s key management personnel.

In assessing whether the contractual cash flows are solely payments of principal andinterest, the Group considers the contractual terms of the instrument. For the purposesof this assessment, ‘principal’ is defined as the fair value of the financial asset on initialrecognition. ‘Interest’ is defined as consideration for the time value of money and forthe credit risk associated with the principal amount outstanding during a particularperiod of time and for other basic lending risks and costs, as well as a profit margin.The Group also assesses whether the financial asset contains a contractual term thatcould change the timing or amount of contractual cash flows such that it would notmeet this condition.

(b) Subsequent measurement of financial assets

- Financial assets at FVTPL

These financial assets are subsequently measured at fair value. Net gains and

losses, including any interest or dividend income, are recognised in profit or loss

unless the financial assets are part of a hedging relationship.

- Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effectiveinterest method. A gain or loss on a financial asset that is measured at amortisedcost and is not part of a hedging relationship shall be recognised in profit or losswhen the financial asset is derecognised, reclassified, through the amortisationprocess or in order to recognise impairment gains or losses.

- Debt investments at FVOCI

These assets are subsequently measured at fair value. Interest income calculatedusing the effective interest method, impairment and foreign exchange gains andlosses are recognised in profit or loss. Other net gains and losses are recognised inother comprehensive income. On derecognition, gains and losses accumulated inother comprehensive income are reclassified to profit or loss.

- Equity investments at FVOCI

These assets are subsequently measured at fair value. Dividends are recognisedas income in profit or loss. Other net gains and losses are recognised in othercomprehensive income. On derecognition, gains and losses accumulated in othercomprehensive income are reclassified to retained earnings.

(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 (includingderivative financial liability) or it is designated as such on initial recognition.

Financial liabilities at FVTPL are subsequently measured at fair value and net gains andlosses, including any interest expense, are recognised in profit or loss, unless the financialliabilities are part of a hedging relationship.

- Financial liabilities at amortised cost

These financial liabilities are subsequently measured at amortised cost using the effectiveinterest method.

(4) Offsetting

Financial assets and financial liabilities are generally presented separately in the balancesheet, and are not offset. However, a financial asset and a financial liability are offset andthe net amount is presented in the balance sheet when both of the following conditions aresatisfied:

- 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 the financial liability simultaneously.

(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 therisks and rewards 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 notretain control over the transferred asset.

Where a transfer of a financial asset in its entirety meets the criteria for derecognition, thedifference between the two amounts below is recognised in profit or loss:

- the carrying amount of the financial asset transferred measured at the date ofderecognition;- the sum of the consideration received from the transfer and, when the transferred financialasset is a debt investment at FVOCI, any cumulative gain or loss that has beenrecognised directly in other comprehensive income for the part derecognised.

The Group derecognises a financial liability (or part of it) only when its contractual obligation(or part of it) is extinguished.

(6) Impairment

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 atFVPL, equity securities designated at FVOCI and derivative financial assets, are not subjectto the ECL assessment.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured asthe present value of all cash shortfalls (i.e. the difference between the cash flows due to theentity in accordance with the contract and the cash flows that the Group expects to receive).

The maximum period considered when estimating ECLs is the maximum contractual period(including extension 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 lifeof a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possiblewithin the 12 months after the balance sheet date (or a shorter period if the expected life ofthe instrument is less than 12 months).

Loss allowances for bills receivable, accounts receivable and receivables under financingarising from oridinary business activities such as sale of goods and provision of services ,arealways measured at an amount equal to lifetime ECLs. ECLs on these financial assets areestimated using a provision matrix based on the Group’s historical credit loss experience,adjusted for factors that are specific to the debtors and an assessment of both the currentand forecast general economic conditions at the balance sheet date.

Except for bills receivable, accounts receivable, receivables under financing, the Groupmeasures loss allowances at an amount equal to 12-month ECLs for the following financialinstruments, and at an amount equal to lifetime ECLs for all other financial instruments:

- If the financial instrument is determined to have low credit risk at the balance sheet date;- If the credit risk on a financial instrument has not increased significantly since initialrecognition.

Provisions for bad and doubtful debts arising from receivables

(a) Categories of groups for collective assessment based on credit risk characteristics and

basis for determination

Bills receivable	Based on the different credit risk characteristics of acceptors, the Group classifies bills receivable into two groups: bank acceptance bills and commercial acceptance bills.
Accounts receivable	Historically, there is no significant difference in terms of occurrence of losses among different customer types for the Group. Therefore, the Group makes provisions for bad and doubtful debts arising from accounts receivable on the basis of all customers being one group without further segmentation by different customer types.
Receivables under financing	The Group’s receivables under financing are bank acceptance bills held for dual purposes. As the accepting banks have high credit ratings, the Group considers all receivables under financing as a group.
Other receivables	The Group’s other receivables mainly include deposits and guarantees receivable,ect. Based on the nature of receivables and the credit risk characteristics of different counterparties, the Group classifies other receivables into 2 groups, specifically: the group of deposits and guarantees receivable and the group of other receivables.

(b) Criteria for individual assessment

Bills receivable, accounts receivable , receivables under financing, and otherreceivables are usually assessed collectively as a group based on credit riskcharacteristics to make provisions. When a counterparty is significantly different fromother counterparties in the group in terms of credit risk characteristics, or if there hasbeen a significant change in its credit risk characteristics, the individual approach isadopted for receivables due from this counterparty. For example, when a counterpartyis in serious financial difficulties and the expected credit loss ratio of receivables duefrom this counterparty is significantly higher than the average expected credit loss ratioof the relevant ageing range, it should be individualy assessed for provisioningpurposes.

Financial instruments that have low credit risk

The credit risk on a financial instrument is considered low if the financial instrument has a lowrisk of default, the borrower has a strong capacity to meet its contractual cash flowobligations in the near term and adverse changes in economic and business conditions in thelonger term may, but will not necessarily, reduce the ability of the borrower to fulfil itscontractual cash flow obligations.

Significant increases in credit risk

In assessing whether the credit risk of a financial instrument has increased significantly sinceinitial recognition, the Group compares the risk of default occurring on the financialinstrument assessed at the balance sheet date with that assessed at the date of initialrecognition.

When determining whether the credit risk of a financial asset has increased significantlysince initial recognition and when estimating ECL, the Group considers reasonable andsupportable information that is relevant and available without undue cost or effort, includingforward-looking information. In particular, the following information is taken into account:

- failure to make payments of principal and interest on their contractual due dates;- an actual or expected significant deterioration in a financial instrument’s external or

internal credit 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 environmentthat have a significant adverse effect on the debtor’s ability to meet its obligation to theGroup.

The Group assumes that the credit risk on a financial asset has increased significantly if it ismore than 30 days past due.

Credit-impaired financial assets

At each balance sheet date, the Group assesses whether financial assets carried atamortised cost and debt investments at FVOCI are credit-impaired. A financial asset is‘credit-impaired’ when one or more events that have a detrimental impact on the estimatedfuture cash flows of the financial asset have occurred. Evidence that a financial asset iscredit-impaired includes the following observable data:

- 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 financialinstrument’s credit risk since initial recognition. Any change in the ECL amount is recognisedas an impairment gain or loss in profit or loss. The Group recognises an impairment gain orloss for all financial instruments with a corresponding adjustment to their carrying amountthrough a loss allowance account, except for debt investments that are measured at FVOCI,for which the loss allowance is recognised in other comprehensive income.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to theextent that there is no realistic prospect of recovery. A write-off constitutes a derecognitionevent. This is generally the case when the Group determines that the debtor does not haveassets or sources of income that could generate sufficient cash flows to repay the amountssubject to the write-off. However, financial assets that are written off could still be subject toenforcement activities in order to comply with the Group’s procedures for recovery ofamounts due.

Subsequent recoveries of an asset that was previously written off are recognised as areversal of impairment in profit or loss in the period in which the recovery occurs.

(7) Equity instrument

The consideration received from the issuance of equity instruments net of transaction costsis recognised at the actual issue price in shareholders’ equity, relevant transaction costs arededucted from shareholders’ equity (capital reserve), with any excess deducted from surplusreserve and retained earnings sequentially. Consideration and transaction costs paid by theCompany for repurchasing self-issued equity instruments are deducted from shareholders’equity.

When the Company repurchases its own shares, those shares are treated as treasuryshares. All expenditure relating to the repurchase is recorded in the cost of the treasuryshares, with the transaction recording in the share register. Treasury shares are excludedfrom profit distributions and are presented as a deduction under shareholders’ equity in thebalance sheet.

When treasury shares are cancelled, the share capital should be reduced to the extent of thetotal par value of the treasury shares cancelled. Where the cost of the treasury sharescancelled exceeds the total par value, the excess is deducted from capital reserve (sharepremium), surplus reserve and retained earnings sequentially. If the cost of treasury sharescancelled is less than the total par value, the difference is credited to the capital reserve(share premium).

11 Inventories

(1) Categories

Inventories include raw materials, work in progress and finished goods. Inventories areinitially measured at cost. Cost of inventories comprises all costs of purchase, costs ofconversion and other expenditure incurred in bringing the inventories to their present locationand condition. In addition to the purchase cost of raw materials, work in progress andfinished goods include direct labour costs and an appropriate allocation of productionoverheads based on normal capacity.

Agricultural products harvested are reported in accordance with the CAS No.1 - Inventories.

(2) Measurement method of cost of inventories

Cost of inventories is calculated using the weighted average method.

(3) Inventory count system

The Group maintains a perpetual inventory system.

(4) Amortisation method for low-value consumables and packaging materials

Consumables including low-value consumables and packaging materials are charged toprofit or loss upon receipt. The amortisation charge is included in the cost of the relatedassets or recognised in profit or loss for the current period.

(5) Criteria and method for provision for obsolete inventories

At the balance sheet date, inventories are carried at the lower of cost and net realisablevalue.

Net realisable value is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale andrelevant taxes. The net realisable value of materials held for use in production is measuredbased on the net realisable value of the finished goods in which they will be incorporated.The net realisable value of inventory held to satisfy sales or service contracts is measuredbased on the contract price. If the quantities of inventories held by the Group exceed thequantities specified in sales contracts, the net realisable value of the excess portion ofinventories is based on general selling prices.

Any excess of the cost over the net realisable value of each item

of inventories is recognisedas a provision for obsolete inventories, and is recognised in profit or loss.

12 Long-term equity investments

(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 businesscombination involving entities under common control is the Company’s share of thecarrying amount of the subsidiary’s equity in the consolidated financial statements ofthe ultimate controlling party at the combination date. The difference between theinitial investment cost and the carrying amount of the consideration given is adjustedto the share premium in the capital reserve, with any excess adjusted to the surplusreserves and retained earnings sequentially. For a long-term equity investment in asubsidiary acquired through a business combination achieved in stages which donot form a bundled transaction and involving entities under common control, theCompany determines the initial cost of the investment in accordance with the abovepolicies. The difference between this initial cost and the sum of the carrying amountof previously-held investment and the consideration paid for the shares newlyacquired is adjusted to capital premium in the capital reserve, with any excessadjusted to the surplus reserves and retained earnings sequentially.

- For a long-term equity investment obtained through a business combination not

involving enterprises under common control, the initial cost comprises the aggregateof the fair value of assets transferred, liabilities incurred or assumed, and equitysecurities issued by the Company, in exchange for control of the acquiree. For along-term equity investment obtained through a business combination not involvingentities under common control and achieved through multiple transactions in stageswhich do not form a bundled transaction, the initial cost comprises the carryingamount of the previously-held equity investment in the acquiree immediately beforethe acquisition date, and the additional 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 combinationis initially recognised at the amount of cash paid if the Group acquires theinvestment by cash, or at the fair value of the equity securities issued if aninvestment is acquired by issuing equity securities.

(2) Subsequent measurement of long-term equity investment

(a) Investments in subsidiaries

In the Company’s separate financial statements, long-term equity investments insubsidiaries are accounted for using the cost method unless the investment isclassified as held for sale (See Note III. 31). Except for cash dividends or profitdistributions declared but not yet distributed that have been included in the price orconsideration paid in obtaining the investments, the Company recognises its share ofthe cash dividends or profit distributions declared by the investee as investment incomefor the current period.

The investments in subsidiaries are stated in the balance sheet at cost lessaccumulated impairment losses.

For the impairment of the investments in subsidiaries, refer to Note III.21.

In the Group’s consolidated financial statements, subsidiaries are accounted for inaccordance with the policies described in Note III.7.

(b) Investment in joint ventures and associates

A joint venture is an arrangement whereby the Group and other parties have jointcontrol (see Note III.12(3)) and rights to the net assets of the arrangement.

Associated enterprises refer to enterprises to which the Group can exercise significantinfluence (see Note III.12(3)).

A long-term equity investment in a joint venture or an associate is accounted for usingthe equity method for subsequent measurement, unless the investment is classified asheld for sale (see Note III.31).

The accounting treatments under the equity method adopted by the Group are asfollows:

- Where the initial cost of a long-term equity investment exceeds the Group’s interestin the fair value of the investee’s identifiable net assets at the date of acquisition, theinvestment is initially recognised at cost. Where the initial investment cost is lessthan the Group’s interest in the fair value of the investee’s identifiable net assets atthe date of acquisition, the investment is initially recognised at the investor’s shareof 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 theinvestee’s profit or loss and other comprehensive income as investment income orlosses and other comprehensive income respectively, and adjusts the carryingamount of the investment accordingly. Once the investee declares any cashdividends or profit distributions, the carrying amount of the investment is reduced bythe amount attributable to the Group. Changes in the Group’s share of theinvestee’s owners’ equity, other than those arising from the investee’s net profit orloss, other comprehensive income or profit distribution (referred to as “otherchanges in owners’ equity”), is recognised directly in the Group’s equity, and thecarrying amount of the investment is adjusted accordingly.

- In calculating its share of the investee’s net profits or losses, other comprehensiveincome and other changes in owners’ equity, the Group recognises investmentincome and other comprehensive income after making appropriate adjustments toalign the accounting policies or accounting periods with those of the Group based onthe fair value of the investee’s identifiable net assets at the date of acquisition.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 theassociates or joint ventures. Unrealised losses resulting from transactions betweenthe Group and its associates or joint ventures are eliminated in the same way asunrealised gains but only to the extent that there is no impairment.

- The Group discontinues recognising its share of further losses of the investee after

the carrying amount of the long-term equity investment and any long-term interestthat in substance forms part of the Group’s net investment in the associate isreduced to zero, except to the extent that the Group has an obligation to assumeadditional losses. If the joint venture or the associate subsequently reports netprofits, the Group resumes recognising its share of those profits only after its shareof the profits equals the share of losses not recognised.

For the impairment of the investments in joint ventures and associates, refer to NoteIII.21.

(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 existsonly when decisions about the relevant activities (activities with significant impact on thereturns of the arrangement) require the unanimous consent of the parties sharing control.

The following factors are usually considered when assessing whether the Group canexercise joint control over an investee:

- Whether no single participant party is in a position to control the investee’s relatedactivities unilaterally;- Whether strategic decisions relating to the investee’s related activities require theunanimous consent of all participant parties that sharing of control.

Significant influence is the power to participate in the financial and operating policy decisionsof an investee but does not have control or joint control over those policies.

13 Investment properties

Investment properties are properties held either to earn rental income or for capitalappreciation or for both. Investment properties are accounted for using the cost model andstated in the balance sheet at cost less accumulated depreciation, amortisation andimpairment losses, and adopts a depreciation or amortisation policy for the investmentproperty which is consistent with that for buildings or land use rights, unless the investmentproperty is classified as held for sale (see Note III.31). For the impairment of the investmentproperties, refer to Note III.21.

Category	Estimated useful life (years)	Residual value rate (%)	Depreciation rate (%)
Plant and buildings	20 - 40 years	0 - 5%	2.4% - 5.0%

14 Fixed assets

(1) Recognition of fixed assets

Fixed assets represent the tangible assets held by the Group for use in production of goods,supply of services, for rental or for administrative purposes with useful lives over oneaccounting year.

The cost of a purchased fixed asset comprises the purchase price, related taxes, and anydirectly attributable expenditure for bringing the asset to working condition for its intendeduse. The cost of self-constructed assets is measured in accordance with the policy set out inNote III.15.

Where the parts of an item of fixed assets have different useful lives or provide benefits tothe Group in a different pattern, thus necessitating use of different depreciation rates ormethods, each part is recognised as a separate fixed asset.

Any subsequent costs including the cost of replacing part of an item of fixed assets arerecognised as assets when it is probable that the economic benefits associated with thecosts will flow to the Group, and the carrying amount of the replaced part is derecognised.The costs of the day-to-day maintenance of fixed assets are recognised in profit or loss asincurred.

Fixed assets are stated in the balance sheet at cost less accumulated depreciation andimpairment losses.

(2) Depreciation of fixed assets

The cost of a fixed asset, less its estimated residual value and accumulated impairmentlosses, is depreciated using the straight-line method over its estimated useful life, unless thefixed asset is classified as held for sale (see Note III.31).

The estimated useful lives, residual value rates and depreciation rates of each class of fixedassets are as 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 ateach year-end.

(3) For the impairment of the fixed assets, refer to Note III.21.

(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 aredetermined as the difference between the net disposal proceeds and the carrying amount ofthe item, and are recognised in profit or loss on the date of retirement or disposal.

15 Construction in progress

The cost of self-constructed assets includes the cost of materials, direct labour, capitalisedborrowing costs (see Note III.16), and any other costs directly attributable to bringing theasset to working condition for its intended use.

A self-constructed asset is classified as construction in progress and transferred to fixedasset when it is ready for its intended use. No depreciation is provided against constructionin progress.

Criteria and timing for the transfer to fixed assets：

Category	Criteria and timing for the transfer to fixed assets
Plant and buildings	(1) The main construction projects and ancillary projects have been substantially completed; (2) the construction projects have been checked and accepted by the survey, design, construction and supervision units after meeting the pre-determined design requirements; (3) the construction projects have been checked and accepted by external departments such as the fire department, the land and resources department and the planning department; (4) if a construction project is available for its intended use but its final account has not yet been finalised, the construction project will be transferred to fixed assets at its estimated value from the date it is available for its intended use, based on the its estimated value of construction.
Machinery and equipment	(1) The relevant equipment and other supporting facilities have been installed; (2) the equipment can operate normally and stably for a period after commissioning; (3) the production equipment is capable of producing qualified products stably for a period; (4) the equipment has been checked and accepted by asset management personnel and users.

Construction in progress is stated in the balance sheet at cost less accumulated impairmentlosses (see Note III.21).

When an enterprise sells products or by-products produced before a fixed asset is availablefor its intended use, the proceeds and related cost are accounted for in accordance with CAS14 – Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for thecurrent period.

16 Borrowing costs

Borrowing costs incurred directly attributable to the acquisition, and construction orproduction of a qualifying asset are capitalised as part of the cost of the asset. Otherborrowing costs are recognised as financial expenses when incurred.

During the capitalisation period, the amount of interest (including amortisation of anydiscount or premium on borrowing) to be capitalised in each accounting period is determinedas follows:

- Where funds are borrowed specifically for the acquisition and construction or production ofa qualifying asset, the amount of interest to be capitalised is the interest expensecalculated using effective interest rates during the period less any interest income earnedfrom depositing the borrowed funds or any investment income on the temporaryinvestment of those funds before being used on the asset.

- To the extent that the Group borrows funds generally and uses them for the acquisitionand construction or production of a qualifying asset, the amount of borrowing costs eligiblefor capitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amounts ofspecific borrowings. The capitalisation rate is the weighted average of the interest ratesapplicable to the general-purpose borrowings.

The effective interest rate is determined as the rate that exactly discounts estimated futurecash flow through the expected life of the borrowing or, when appropriate, a shorter period tothe initially recognised amount of the borrowings.

During the capitalisation period, exchange differences related to the principal and interest ona specific-purpose borrowing denominated in foreign currency are capitalised as part of thecost of the qualifying asset. The exchange differences related to the principal and interest onforeign currency borrowings other than a specific-purpose borrowing are recognised as afinancial expense when incurred.

The capitalisation period is the period from the date of commencement of capitalisation ofborrowing costs to the date of cessation of capitalisation, excluding any period over whichcapitalisation is suspended. Capitalisation of borrowing costs commences when expenditurefor the asset is being incurred, borrowing costs are being incurred and activities ofacquisition, construction or production that are necessary to prepare the asset for itsintended use are in progress, and ceases when the assets become ready for their intendeduse. Capitalisation of borrowing costs should cease when the qualifying asset beingconstructed or produced has reached its expected usable or saleable condition.Capitalisation of borrowing costs is suspended when the acquisition, construction orproduction activities are interrupted abnormally for a period of more than three months.

17 Biological assets

The Group’s biological assets are bearer biological assets.

Bearer biological assets are those that are held for the purposes of producing agriculturalproduce, rendering of services or rental. Bearer biological assets in the Group are vines.Bearer biological assets are initially measured at cost. The cost of self-grown or self-bredbearer biological assets represents the necessary directly attributable expenditure incurredbefore satisfying the expected production and operating purpose, including capitalisedborrowing costs.

Bearer biological assets, after reaching the expected production and operating purpose, aredepreciated using the straight-line method over its estimated useful life. The estimateduseful lives, estimated net residual value rates and depreciation rates of bearer biologicalassets are as follows:

Category	Estimated useful life (years)	Estimated net residual value rate(%)	Depreciation rate (%)
Vines	20 years	0%	5.0%

The Group evaluates the useful life and expected net salvage value by considering thenormal producing life of the bearer biological assets.

Useful lives, estimated residual values and depreciation methods of bearer biological assetsare reviewed at least at each year-end. Any changes should be treated as changes inaccounting estimates.

For a bearer biological asset that has been sold, damaged, dead or destroyed, anydifference between the disposal proceeds and the carrying amount of the asset should berecognised in profit or loss for the period in which it arises.

18 Intangible assets

Useful life and amortisation methods

Intangible assets are stated in the balance sheet at cost less accumulated amortization(where the estimated useful life is finite) and impairment losses (see Note III.21). For anintangible asset with finite useful life, its cost estimated less residual value and accumulatedimpairment losses is amortised on the straight-line method over its estimated useful life,unless the intangible asset is classified as held for sale.

The estimated useful lives, basis for determination and amortisation methods of intangibleassets are as follows:

Item	Amortisation period (years)	Basis for determination	Amortisation methods
Land use rights	40 - 50 years	Terms of land use rights	Stright-line Method
Software licenses	5 - 10 years	Shorter of the term of software or the estimated useful life of software	Stright-line Method
Trademarks	10 years	Shorter of the term of trademark rights or the estimated useful life of trademark rights	Stright-line Method

Useful lives and amortisation methods of intangible asset with finite useful life are reviewedat least at each year-end.

An intangible asset is regarded as having an indefinite useful life and is not amortised whenthere is no foreseeable limit to the period over which the asset is expected to generateeconomic benefits for the Group. At the balance sheet date, the Group had intangible assetswith infinite useful lives including the land use rights and trademarks. Land use rights withinfinite useful lives are permanent land use rights with permanent ownership held by theGroup under the relevant Chile and Australian laws arising from the Group’s acquisition ofVi?a Indómita, S.A., Vi?a Dos Andes, S.A., and Bodegas Santa Alicia SPA. (collectivelyreferred to as the “Chile Indomita Wine Group”), and the acquisition of Kilikanoon Estate PtyLtd. (the “Australia Kilikanoon Estate”), therefore there was no amortisation. The right to usetrademark refers to the trademark held by the Group arising from the acquisition of the ChileIndomita Wine Group and the Australia Kilikanoon Estate with infinite useful lives. Thevaluation of trademark was based on the trends in the market and competitive environment,product cycle, and managing long-term development strategy. Those basis indicated thetrademark will provide net cash flows to the Group within an uncertain period. The useful lifeis indefinite as it was hard to predict the period that the trademark would bring economicbenefits to the Group.

19 Goodwill

The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’sinterest in the fair value of the identifiable net assets of the acquiree under a businesscombination not involving entities under common control.

Goodwill is not amortised and is stated in the balance sheet at cost less accumulatedimpairment losses (see Note III.21). On disposal of an asset group or a set of asset groups,any attributable goodwill is written off and included in the calculation of the profit or loss ondisposal.

20 Long-term deferred expenses

Expenditures incurred with a beneficial period of over one year are recognised as long-termdeferred expenses.

Long-term deferred expenses are amortised using a straight-line method within the benefitperiod. The respective amortisation periods for such expenses are as follows:

Item	Amortisation period
Land requisition fee	50 years
Greening fee	5 - 20 years
Renovation Fee	3 - 20 years
Others	3 years

21 Impairment of assets other than inventories and financial assets

The carrying amounts of the following assets are reviewed at each balance sheet date basedon internal and external sources of information to determine whether there is any indicationof impairment:

- fixed assets- construction in progress- right-of-use assets- 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, theGroup estimates the recoverable amounts of goodwill and intangible assets with infiniteuseful lives at each year-end, irrespective of whether there is any indication of impairment.Goodwill is allocated to each asset group, or set of asset groups, that is expected to benefitfrom the synergies of the combination for the purpose of impairment testing.

The recoverable amount of an asset (or asset group, set of asset groups) is the higher of itsfair value (see Note III.22) less costs to sell and its present value of expected future cashflows.

An asset group is composed of assets directly related to cash-generation and is the smallestidentifiable group of assets that generates cash inflows that are largely independent of thecash inflows from other assets or asset groups.

The present value of expected future cash flows of an asset is determined by discounting thefuture cash flows, estimated to be derived from continuing use of the asset and from itsultimate disposal, to their 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 isless than its carrying amount. A provision for impairment of the asset is recognised accordingly.Impairment losses related to an asset group or a set of asset groups are allocated first toreduce the carrying amount of any goodwill allocated to the asset group or set of asset groups,and then to reduce the carrying amount of the other assets in the asset group or set of assetgroups on a pro rata basis. However, such allocation would not reduce the carrying amountof an asset below the highest of its fair value less costs to sell (if measurable), its present valueof expected future cash flows (if determinable) and zero.

Once an impairment loss is recognised, it is not reversed in a subsequent period.

22 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 inan orderly transaction between market participants at the measurement date.

When measuring fair value, the Group takes into account the characteristics of the particularasset or liability (including the condition and location of the asset and restrictions, if any, onthe sale or use of the asset) that market participants would consider when pricing the assetor liability at the measurement date, and uses valuation techniques that are appropriate inthe circumstances and for which sufficient data and other information are available tomeasure fair value. Valuation techniques mainly include the market approach, the incomeapproach and the cost approach.

23 Provisions

A provision is recognised for an obligation related to a contingency if the Group has apresent obligation that can be estimated reliably, and it is probable that an outflow ofeconomic benefits will be required to settle the obligation.

A provision is initially measured at the best estimate of the expenditure required to settle therelated present obligation. Where the effect of the time value of money is material, provisionsare determined by discounting the expected future cash flows. Factors pertaining to acontingency such as the risks, uncertainties and time value of money are taken into accountas a whole in reaching the best estimate.

Where there is a continuous range of possibleoutcomes for the expenditure required, and each possible outcome in that range is as likelyas any other, the best estimate is the mid-point of that range. In other cases, the bestestimate is determined as follows:

- Where the contingency involves a single item, the best estimate is the most likely

outcome.- Where the contingency involves a large population of items, the best estimate isdetermined by weighting all possible outcomes by their associated probabilities.

The Group reviews the carrying amounts of provisions at the balance sheet date and adjuststheir carrying amounts to the current best estimates.

24 Share-based payments

(1) Classification of share-based payments

Share-based payment transactions in the Group are equity-settled share-based payments..

(2) Accounting treatment of share-based payments

- Equity-settled share-based payments

Where the Group uses shares or other equity instruments as consideration for servicesreceived from employees, the payment is measured at the fair value of the equityinstruments granted to employees at the grant date. If the equity instruments granted toemployees vest immediately, the fair value of the equity instruments granted is fullyrecognised as costs or expenses on the grant date, with a corresponding increase incapital reserve. If the equity instruments granted do not vest until the completion ofservices for a period, or until the achievement of a specified performance condition, theGroup recognises an amount at each balance sheet date during the vesting period basedon the best estimate of the number of equity instruments expected to vest according tonewly obtained subsequent information regarding changes in the number of employeesexpected to vest the equity instruments. The Group measures the services received at thegrant-date fair value of the equity instruments and recognises the costs or expenses asthe services are received, with a corresponding increase in capital reserve.

When the Group receives services but has no obligation to settle the transaction becausethe relevant equity instruments are issued by the Company’s ultimate parent or itssubsidiaries outside the Group, the Group also classifies the transaction as equity-settled.

25 Revenue recognition

Revenue is the gross inflow of economic benefits arising in the course of the Group’sordinary activities when the inflows result in increase in shareholders’ equity, other thanincrease relating to contributions from shareholders.

Revenue is recognised when the Group satisfies the performance obligation in the contractby transferring the control over relevant goods or services to the customers.

Where a contract has two or more performance obligations, the Group determines the stand-alone selling price at contract inception of the distinct good or service underlying eachperformance obligation in the contract and allocates the transaction price in proportion tothose stand-alone selling prices. The Group recognises as revenue the amount of thetransaction price that is allocated to each performance obligation. The stand-alone sellingprice is the price at which the Group would sell a promised good or service separately to acustomer. If a stand-alone selling price is not directly observable, the Group considers allinformation that is reasonably available to the entity, maximises the use of observable inputsto estimate the stand-alone selling price.

For the contract with a warranty, the Group analyses the nature of the warranty provided, ifthe warranty provides the customer with a distinct service in addition to the assurance thatthe product complies with agreed-upon specifications, the Group recognises for the promisedwarranty as a performance obligation. Otherwise, the Group accounts for the warranty inaccordance with the requirements of CAS No.13 – Contingencies.

The transaction price is the amount of consideration to which the Group expects to beentitled in exchange for transferring promised goods or services to a customer, excludingamounts collected on behalf of third parties. The Group recognises the transaction price onlyto the extent that it is highly probable that a significant reversal in the amount of cumulativerevenue recognised will not occur when the uncertainty associated with the variableconsideration is subsequently resolved. Where the contract contains a significant financingcomponent, the Group recognises the transaction price at an amount that reflects the pricethat a customer would have paid for the promised goods or services if the customer had paidcash for those goods or services when (or as) they transfer to the customer. The differencebetween the amount of promised consideration and the cash selling price is amortised usingan effective interest method over the contract term. The Group does not adjust theconsideration for any effects of a significant financing component if it expects, at contractinception, that the period between when the Group transfers a promised good or service to acustomer and when the customer pays for that good or service will be one year or less.

The Group satisfies a performance obligation over time if one of the following criteria is met;or otherwise, a performance obligation is satisfied at a point in time:

- the customer simultaneously receives and consumes the benefits provided by the Group’sperformance as the Group performs;- the customer can control the asset created or enhanced during the Group’s performance;or- the Group’s performance does not create an asset with an alternative use to it and theGroup has an enforceable right to payment for performance completed to date.

For performance obligation satisfied over time, the Group recognises revenue over time bymeasuring the progress towards complete satisfaction of that performance obligation. Whenthe outcome of that performance obligation cannot be measured reasonably, but the Groupexpects to recover the costs incurred in satisfying the performance obligation, the Grouprecognises revenue only to the extent of the costs incurred until such time that it canreasonably measure the outcome of the performance obligation.

For performance obligation satisfied at a point in time, the Group recognises revenue at thepoint in time at which the customer obtains control of relevant goods or services. Todetermine whether a customer has obtained control of goods or services, the Groupconsiders the following indicators:

- the Group has a present right to payment for the goods or services;- the Group has transferred physical possession of the goods to the customer;- the Group has transferred the legal title of the goods or the significant risks and rewards ofownership of the goods to the customer; and- the customer has accepted the goods or services.

For the sale of a product with a right of return, the Group recognises revenue when theGroup obtains control of that product, in the amount of consideration to which the Groupexpects to be entitled in exchange for the product transferred (i.e. excluding the amount ofwhich expected to be returned), and recognises a refund liability for the products expected tobe returned. Meanwhile, an asset is recognised in the amount of carrying amount of theproduct expected to be returned less any expected costs to recover those products (includingpotential decreases in the value of returned products), and carry forward to cost in theamount of carrying amount of the transferred products less the above costs. At the end ofeach reporting period, the Group updates its assessment of future sales return. If there isany change, it is accounted for as a change in accounting estimate.

A contract asset is the Group’s right to consideration in exchange for goods or services that ithas transferred to a customer when that right is conditional on something other than thepassage of time. The Group recognises loss allowances for expected credit loss on contractassets. Accounts receivable is the Group’s right to consideration that is unconditional (onlythe passage of time is required). A contract liability is the Group’s obligation to transfergoods or services to a customer for which the Group has received consideration (or anamount of consideration is due) from the customer.

The following is the description of accounting policies regarding revenue from the Group’sprincipal activities:

The Group’s sales revenue is mainly derived from dealer sales. Revenue is recognisedwhen the Group transfers control of the related products to the customer. Based on thebusiness contract, the Group recognised the sales revenue of these transfers when theproduct is confirmed and signed for acceptance by the customers.

26 Contract costs

Contract costs are either the incremental costs of obtaining a contract with a customer or thecosts to fulfil a contract with a customer.

Incremental costs of obtaining a contract are those costs that the Group incurs to obtain acontract with a customer that it would not have incurred if the contract had not been obtainede.g. an incremental sales commission. The Group recognises as an asset the incrementalcosts of obtaining a contract with a customer if it expects to recover those costs. Other costsof obtaining a contract are expensed when incurred.

If the costs to fulfil a contract with a customer are not within the scope of inventories or otheraccounting standards, the Group recognises an asset from the costs incurred to fulfil acontract only if those costs meet all of the following criteria:

- the costs relate directly to an existing contract or to a specifically identifiable anticipatedcontract, including direct labour, direct materials, allocations of overheads (or similarcosts), costs that are explicitly chargeable to the customer and other costs that areincurred only because the Group entered into the contract- the costs generate or enhance resources of the Group that will be used in satisfying (or incontinuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.

Assets recognised for the incremental costs of obtaining a contract and assets recognised forthe costs to fulfil a contract (the “assets related to contract costs”) are amortised on asystematic basis that is consistent with the transfer to the customer of the goods or servicesto which the assets relate and recognised in profit or loss for the current period. The Grouprecognises the incremental costs of obtaining a contract as an expense when incurred if theamortisation period of the asset that the entity otherwise would have recognised is one yearor less.

The Group recognises an impairment loss in profit or loss to the extent that the carryingamount of an asset related to contract costs exceeds:

- remaining amount of consideration that the Group expects to receive in exchange for the

goods or services to which the asset relates; less- the costs that relate directly to providing those goods or services that have not yet been

recognised as expenses.

27 Employee benefits

(1) Short-term employee benefits

Employee wages or salaries, bonuses, social security contributions such as medicalinsurance, work injury insurance, maternity insurance and housing fund, measured at theamount incurred or accured at the applicable benchmarks and rates, are recognised as aliability as the employee provides services, with a corresponding charge to profit or loss orincluded in the cost of assets where appropriate.

(2) Post-employment benefits – defined contribution plans

Pursuant to the relevant laws and regulations of the People’s Republic of China, the Groupparticipated in a defined contribution basic pension insurance plan in the social insurancesystem established and managed by government organisations. The Group makescontributions to basic pension insurance plans based on the applicable benchmarks andrates stipulated by the government. Basic pension insurance contributions payable arerecognised as a liability as the employee provides services, with a corresponding charge toprofit or loss or included in the cost of assets where appropriate.

(3) Termination benefits

When the Group terminates the employment with employees before the employmentcontracts expire, or provides compensation under an offer to encourage employees to acceptvoluntary redundancy, a provision is recognised with a corresponding expense in profit orloss at the earlier of the following dates:

- When the Group cannot unilaterally withdraw the offer of termination benefits because ofan employee termination plan or a curtailment proposal;- When the Group has a formal detailed restructuring plan involving the payment oftermination benefits and has raised a valid expectation in those affected that it will carryout the restructuring by starting to implement that plan or announcing its main features tothose affected by it.

28 Government grants

Government grants are non-reciprocal transfers of monetary or non-monetary assets fromthe government to the Group except for capital contributions from the government in thecapacity as an investor in the Group.

A government grant is recognised when there is reasonable assurance that the grant will bereceived and 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 theamount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.

Government grants related to assets are grants whose primary condition is that the Groupqualifying for them should purchase, construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets. Agovernment grant related to an asset is recognised as deferred income and amortised overthe useful life of the related asset on a reasonable and systematic manner as other incomeor non-operating income. A grant that compensates the Group for expenses or losses to beincurred in the future is recognised as deferred income, and included in other income or non-operating income in the periods in which the expenses or losses are recognised. Or includedin other income or non-operating income directly.

29 Income tax

Current tax and deferred tax are recognised in profit or loss except to the extent that theyrelate to a business combination or items recognised directly in equity (including othercomprehensive income).

Current tax is the expected tax payable calculated at the applicable tax rate on taxableincome for the year, 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 alegally enforceable right to set them off and also intends either to settle on a net basis or torealise the asset and settle the liability simultaneously.

Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporarydifferences respectively, being the differences between the carrying amounts of assets andliabilities for financial reporting purposes and their tax bases, which include deductible lossesand tax credits carried forward to subsequent periods. Deferred tax assets are recognised tothe extent that it is probable that future taxable profits will be available against whichdeductible temporary differences can be utilised.

Deferred tax is not recognised for temporary differences arising from the initial recognition ofassets or liabilities in a single transaction that is not a business combination, affects neitheraccounting profit nor taxable profit (or deductible loss) and does not give rise to equal taxableand deductible temporary differences. Deferred tax is also 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 thatwould follow from the expected manner of recovery or settlement of the carrying amounts ofthe assets and liabilities, using tax rates enacted at the balance sheet date that are expectedto be applied in the period when 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 isreduced to the extent that it is no longer probable that the related tax benefits will be utilised.Such reductions are reversed to the extent that it becomes probable that sufficient taxableprofits will be available.

At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all ofthe following conditions are met:

- the taxable entity has a legally enforceable right to offset current tax liabilities and currenttax assets;- they relate to income taxes levied by the same tax authority on either:

- the same taxable entity; or- different taxable entities which intend either to settle the current tax liabilities and current

tax assets on a net basis, or to realise the assets and settle the liabilities simultaneously,in each future period in which significant amounts of deferred tax liabilities or deferred taxassets are expected to be settled or recovered.

30 Leases

A contract is lease if the lessor conveys the right to control the use of an identified asset tolessee for a period of time in exchange for consideration.

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. Acontract is, or contains, a lease if the contract conveys the right to control the use of anidentified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, theGroup assesses whether:

- the contract involves the use of an identified asset. An identified asset may be specifiedexplicitly or implicitly speicied in a contrat and should be physically distinct, or capacityportion or other portion of an asset that is not physically distinct but it representssubstantially all of the capacity of the asset and thereby provides the customer with theright to obtain substantially all of the ecomonic benefits from the use of the asset. If thesupplier has a substantive substitution right throughout the period of use, then the asset isnot identified;- the lessee has the right to obtain substantially all of the economic benefits from use of theasset throughout the period of use;- the lessee has the right to direct the use of the asset.

For a contract that contains more separate lease componets, the lessee and the lessorseparate lease components and account for each lease component as a lease separately.For a contract that contains lease and non-lease components, the lessee and the lessorseparate lease components from non-lease components. For a contract that contains leaseand non-lease components, the lessee allocates the consideration in the contract to eachlease component on the basis of the relative stand-alone price of the lease component andthe aggregate stand-alone price of the non-lease components. The lessor allocates theconsideration in the contract in accordance with the accounting policy in Note III.25.

(1) As a lessee

The Group recognises a right-of-use asset and a lease liability at the lease commencementdate. The right-of-use asset is initially measured at cost, which comprises the initial amountof the lease liability, any lease payments made at or before the commencement date (lessany lease incentives received), any initial direct costs incurred and an estimate of costs todismantle and remove the underlying asset or to restore the site on which it is located orrestore the underlying asset to the condition required by the terms and conditions of thelease.

The right-of-use asset is depreciated using the straight-line method. If the lessee isreasonably certain to exercise a purchase option by the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise,the right-of-use asset is depreciated from the commencement date to the earlier of the end ofthe useful life of the right-of-use asset or the end of the lease term. Impairment losses ofright-of-use assets are accounted for in accordance with the accounting policy described inNote III.21.

The lease liability is initially measured at the present value of the lease payments that are notpaid at the commencement date, discounted using the interest rate implicit in the lease or, ifthat rate cannot be readily determined, the Group’s incremental borrowing rate.

A constant periodic rate is used to calculate the interest on the lease liability in each periodduring the lease term with a corresponding charge to profit or loss or included in the cost ofassets where appropriate. Variable lease payments not included in the measurement of thelease liability is charged to profit or loss or included in the cost of assets where appropriateas incurred.

Under the following circumstances after the commencement date, the Group remeasureslease liabilities based on the present value of revised lease payments:

- there is a change in the amounts expected to be payable under a residual value

guarantee;- there is a change in future lease payments resulting from a change in an index or a rateused to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase,extension or termination option, or there is a change in the exercise of the extension ortermination option.

When the lease liability is remeasured, a corresponding adjustment is made to the carryingamount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of theright-of-use asset has been reduced to zero.

The Group has elected not to recognise right-of-use assets and lease liabilities for short-termleases that have a lease term of 12 months or less and leases of low-value assets. TheGroup recognises the lease payments associated with these leases in profit or loss or as thecost of the assets where appropriate using the straight-line method over the lease term.

(2) As a lessor

The Group determines at lease inception whether each lease is a finance lease or anoperating lease. A lease is classified as a finance lease if it transfers substantially all therisks and rewards incidental to ownership of an underlying asset irrespective of whether thelegal title to the asset is eventually transferred. An operating lease is a lease other than afinance lease.

When the Group is a sub-lessor, it assesses the lease classification of a sub-lease withreference to the right-of-use asset arising from the head lease, not with reference to theunderlying asset. If a head lease is a short-term lease to which the Group applies practicalexpedient described above, then it classifies the sub-lease as an operating lease.

Under a finance lease, at the commencement date, the Group recognises the finance leasereceivable and derecognises the finance lease asset. The finance lease receivable is initiallymeasured at an amount equal to the net investment in the lease. The net investment in thelease is measured at the aggregate of the unguaranteed residual value and the presentvalue of the lease receivable that are not received at the commencement date, discountedusing the interest rate implicit in the lease.

The Group recognises finance income over the lease term, based on a pattern reflecting aconstant periodic rate of return. The derecognition and impairment of the finance leasereceivable are recognised in accordance with the accounting policy in Note III.10. Variablelease payments not included in the measurement of net investment in the lease arerecognised as income as they are earned.

Lease receipts from operating leases is recognised as income using the straight-line methodover the lease term. The initial direct costs incurred in respect of the operating lease areinitially capitalised and subsequently amortised in profit or loss over the lease term on thesame basis as the lease income. Variable lease payments not included in lease receipts arerecognised as income as they are earned.

31 Assets held for sale

The Group classified a non-current asset or disposal group as held for sale when thecarrying amount of a non-current asset or disposal group will be recovered through a saletransaction rather than through continuing use.

A disposal group refers to a group of assets to be disposed of, by sale or otherwise, togetheras a whole in a single transaction and liabilities directly associated with those assets that willbe transferred in the transaction.

A non-current asset or disposal group is classified as held for sale when all the followingcriteria are met:

- 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 salein their present condition subject to terms that are usual and customary for sales of suchassets or disposal groups;- 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 carryingamount and fair value (see Note III.22) less costs to sell (except financial assets (see NoteIII.10), deferred tax assets (see Note III.29) and investment properties subsequent measuredat fair value (see Note III. 13) initially and subsequently. Any excess of the carrying amountover the fair value (see Note III.22) less costs to sell is recognised as an impairment loss inprofit or loss.

32 Profit distributions

Dividends or profit distributions proposed in the profit appropriation plan, which will beapproved after the balance sheet date, are not recognised as a liability at the balance sheetdate but are disclosed in the notes separately.

33 Related parties

If a party has the power to control, jointly control or exercise significant influence overanother party, or vice versa, or where two or more parties are subject to common control orjoint control from another party, they are considered to be related parties. Related partiesmay be individuals or enterprises. Enterprises with which the Company is under commoncontrol only from the State and that have no other related party relationships are notregarded as related parties.

In addition to the related parties stated above, the Company determines related partiesbased on the disclosure requirements of Administrative Procedures on the InformationDisclosures of Listed Companies issued by the CSRC.

34 Segment reporting

The Group is principally engaged in the production and sales of wine, brandy, and sparklingwine in China, France, Spain, Chile and Australia. In accordance with the Group’s internalorganisation structure, management requirements and internal reporting system, the Group’soperation is divided into five parts: China, Spain, France, Chile and Australia. Themanagement periodically evaluates segment results, in order to allocate resources andevaluate performances. In 2024, over 82% of revenue, more than 93% of profit and over91% of non-current assets derived from China/are located in China. Therefore the Groupdoes not need to disclose additional segment report information.

35 Significant accounting estimates and judgements

The preparation of the financial statements requires management to make estimates andassumptions that affect the application of accounting policies and the reported amounts ofassets, liabilities, income and expenses. Actual results may differ from these estimates. Themanagement estimates as well as underlying assumptions and uncertainties involved arereviewed on an ongoing basis. Revisions to accounting estimates are recognised in theperiod in which the estimate is revised and in any future periods affected.

Significant accounting estimates see Notes V.3 7 11 and 16.

36 Changes in significant accounting policies

In 2024, the Group has adopted the following newly revised accounting standards andimplementation guidance and illustrative examples issued by the MOF:

The “classification of liabilities as current or non-current” in CAS Bulletin No. 17 (Caikuai[2023] No. 21)(“CAS Bulletin No. 17”).

The requirements on the “presentation of assurance-type warranty expenses” in theCompilation of Application Guidance to Accounting Standards for Business Enterprises for2024.

(a) Main effects of the Group’s adoption of the above requirements and guidance

(i) Requirements on the classification of liabilities as current or non-current:

According to CAS Bulletin No. 17, only the Group’s substantive right to defer the settlementof liabilities for more than one year after the balance sheet date (“the right to defer the

settlement of liabilities”) is considered when classifying the liquidity of liabilities; thesubjective possibility of exercising the above right is not considered.

For liabilities arising from the Group’s loan arrangements, if the Group’s right to defer thesettlement of liabilities is subject to compliance with covenants specified in the loanarrangements (“covenants”), only the covenants on or before the balance sheet date whenclassifying the liquidity of liabilities are considered; the effect of covenants after the balancesheet date is not considered.

If the Group settles its liabilities by delivering its own equity instruments at the option of thecounterparty and classifies the above options as equity instruments and recognises themseparately as the equity component of a compound financial instrument in accordance withCAS 37 Presentation of Financial Instruments, there will be no effect on the classification ofthe liquidity of the liabilities. However, there will be effects on the classification if the aboveoptions cannot be classified as equity instruments.

The adoption of this requirement does not have a significant effect on the financial positionand financial performance of the Group.

(ii) Presentation of assurance-type warranty expenses

According to the Compilation of Application Guidance to Accounting Standards for BusinessEnterprises for 2024, the Group has presented assurance-type warranty expenses accruedby the Group as “operating cost from principal activities”, and no longer as “selling anddistribution expenses”.

The adoption of this requirement does not have a significant effect on the financial positionand financial performance of the Group.

IV. Taxation

1 Main types of taxes and corresponding tax rates

Type of tax	Taxation basis	Tax rate
Value-added tax (VAT)	Output VAT is calculated on product sales and taxable services revenue. The basis for VAT payable is to deduct input VAT from the output VAT for the period	13%, 9%, 6% (China), 20% (France), 21% (Spain), 19% (Chile) and 10% (Australia)
Consumption tax	Based on taxable revenue	10% of the price, 20% of the price and RMB1,000 each ton (China)
Urban maintenance and construction tax	Based on VAT paid	7% (China)
Corporate income tax	Based on taxable profits	25% (China), 25% (France), 28% (Spain), 27% (Chile), 30% (Australia)

Other than tax incentives stated in Note IV. 2, applicable tax rates of the Group in 2024 and2023 are all stated as above.

2 Tax preferential treatments

Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”), a subsidiary of the Group,whose principal activity is grape growing is incorporated in Ningxia Huizu AutonomousRegion. According to clause 27 of the Corporate Income Tax Law of the People’s Republic ofChina and clause 86 of the Implementation Rules of Enterprise Income Tax Law of thePeople’s Republic of China, Ningxia Growing enjoys an exemption of corporate income tax.

Yantai Changyu Grape Growing Co., Ltd. (“Grape Growing”), a branch of the Company,whose principal activity is grape growing is incorporated in Zhifu District, Yantai City,Shandong Province. According to clause 27 of the Corporate Income Tax Law of thePeople’s Republic of China and clause 86 of the Implementation Rules of Enterprise IncomeTax Law of the People’s Republic of China, Grape Growing enjoys an exemption ofcorporate income tax.

Yantai Changyu Wine Research & Development Centre Co., Ltd. (“R&D Centre”), a branchof the Company, is an enterprise engaged in grape growing in the Economic andTechnological Development Zone of Yantai City, Shandong Province. Pursuant to Article 27of the Enterprise Income Tax Law of the People’s Republic of China and Article 86 of theImplementation Regulations of the Enterprise Income Tax Law of the People’s Republic ofChina, R&D Centre enjoys the preferential policy of exemption of enterprise income tax onincome from grape growing.

Beijing Changyu AFIP Agriculture Development Co., Ltd. (“Agriculture Development”), asubsidiary of the Group, whose principal activity is grape growing is incorporated in Miyun,Beijing. According to clause 27 of the Corporate Income Tax Law of the People’s Republicof China and clause 86 of the Implementation Rules of Enterprise Income Tax Law of thePeople’s Republic of China, Agriculture Development enjoys an exemption of corporateincome tax.

Xinjiang Chateau Changyu Baron Balboa Co., Ltd. (“Chateau Shihezi”), a subsidiary of theCompany, is an enterprise of wine production and sales incorporated in Shihezi city, XinjiangWeizu Autonomous. In accordance with relevant provisions of the Announcement onContinuation of CIT Policies for Large-scale Development in the Western Region(Announcement [2020] No.23 of the Ministry of Finance), the Company is entitled topreferential tax policies. Therefore, during the period from 2021 to 2030, its corporate incometax shall be levied at a reduced tax rate of 15%.

Ningxia Changyu Longyu Chateau Co., Ltd. (“Ningxia Chateau”), a subsidiary of theCompany, is an enterprise of wine production and sales incorporated in Yinchuan, NingxiaHui Autonomous Region. In accordance with the Notice on Continuing the Enterprise IncomeTax Policies for the Large-Scale Development of Western China (Notice of the Ministry ofFinance [2020] No. 23), Ningxia Chateau is qualified to enjoy preferential taxation policies,which means it can pay corporate income tax at a preferential rate of 15% for the period from2021 to 2030.

Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”), a subsidiary of the Company, is anenterprise engaged in wine production and sales, incorporated in Shihezi City, Xinjiang UygurAutonomous Region. In accordance with relevant provisions of the Announcement onContinuation of CIT Policies for Large-scale Development in the Western Region(Announcement [2020] No.23 of the Ministry of Finance), Changyu (Ningxia) Wine is entitledto preferential tax policies. Therefore, during the period from 2021 to 2030, its corporateincome tax shall be levied at a reduced tax rate of 15%.

In accordance with the PRC Enterprise Income Tax Law and its implementing regulations,the Announcement on Further Implementation of Income Tax Incentives for Small Enterprises

with Meagre Profits (Announcement [2022] No. 13 of the Ministry of Finance and the StateTaxation Administration) and the Notice of the Ministry of Finance and the StateAdministration of Taxation on Further Support the Inclusive Tax Expenses Policies for Microand Small Enterprises for micro and small enterprises Development (Announcement [2023]No. 12 of the Ministry of Finance and the State Taxation Administration), for micro and smallenterprises meet the application requirements that the amount of taxable income shall bereduced by 25%, and the applicable rate of enterprise income tax shall be 20%. BeijingChangyu Wine Marketing Co., Ltd. (“Beijing Marketing”), a subsidiary of the Company, wasidentified as a qualified small enterprise with meagre profits.

Pursuant to the Announcement on Clarifying VAT Relief and Other Policies for Small-scaleVAT Taxpayers (Announcement [2023] No.19 of the Ministry of Finance and the StateTaxation Administration), the taxable sales revenue of small-scale VAT taxpayers to which alevy rate of 3% is applicable shall be subject to VAT at a reduced levy rate of 1%; and theprepaid VAT items to which a pre-levy rate of 3% is applicable shall be subject to a reducedpre-levy rate of 1% from the period from 1 January 2024 to 31 December 2027. XinjiangChangyu Sales Co., Ltd. Weimeisi Tasting Centre Branch is entitled to the above preferentialtax policies.

In accordance with the Notice of the Ministry of Finance and the State Administration ofTaxation on Further Stepping up the Implementation of the Policy for the Refund of Term-EndExcess Input Value-Added Tax Credits (Notice of the Ministry of Finance and State TaxationAdministration [2022] No. 14), the government should further step up the implementation ofthe policy for the refund of term-end excess input value-added tax credits and expand thescope of industries applicable to this policy. The Company and its qualified subsidiaries haveenjoyed this policy.

In accordance with the Notice of the Ministry of Finance and the State Administration ofTaxation on the Further Implementation of Reduction and Exemption in Six Taxes and TwoFees for Small-Scale and Micro Enterprises (Notice of the Ministry of Finance and StateTaxation Administration [2022] No. 10), from 1 January 2022 to 31 December 2024, People’sGovernments of all provinces, autonomous regions and municipalities can reduce theresource tax, urban maintenance and construction tax, property tax, Urban and townshipland use tax, stamp duty (excluding stamp duty on securities transaction), farmlandoccupation tax, education surcharges, and local education surcharges within a 50% taxrange for small-scale VAT taxpayers, small-scale and low-profit enterprises, and individually-owned businesses based on the actual situation in the region. Shandong, Xinjiang, Ningxia,Shaanxi, and other provinces (regions, cities) are all subject to a 50% reduction in “six taxesand two fees”, and some subsidiaries of the Company are qualified to enjoy the taxreduction.

V. Notes to the consolidated financial statements

1 Cash at bank and on hand

Item	2024	2023
Cash on hand	27,228	74,951
Bank deposits	1,797,503,539	2,217,280,801
Other monetary funds	317,363	337,895
Total	1,797,848,130	2,217,693,647
Including: Total overseas deposits	33,384,691	24,317,469

As at 31 December 2024, details of restricted bank deposits are as follows：

Item	2024	2023
Escrow account for migrant workers' wages	1,153,216	-

?

?

As at 31 December 2024, the Group’s term deposits with previous maturity of more thanthree months is RMB 78,650,000, with interest rate 1.70% - 2.25% (31 December 2023:

254,200,000).

As at 31 December 2024, the Group’s other monetary assets is as follows:

Item	2024	2023
Alipay account balance	158,894	192,997
Deposits for the customs	134,076	134,898
Deposit for ICBC platform	24,393	10,000
Total	317,363	337,895

As at 31 December 2024, the Group did not have any special interest arrangements such asthe establishment of joint fund management accounts with related parties.

2 Bills receivable

Classification of bills receivable

Item	2024	2023
Bank acceptance bills	1,036,243	1,260,000
Total	1,036,243	1,260,000

All of the above bills are due within one year.

3 Accounts receivable

(1) Accounts receivable by customer type are as follows:

Type	31 December 2024	31 December 2023
Amounts due from related parties	1,458,339	4,401,307
Amounts due from other customers	276,983,985	390,889,475
Sub-total	278,442,324	395,290,782
Less: Provision for bad and doubtful debts	(7,612,723)	(13,158,448)
Total	270,829,601	382,132,334

As at 31 December 2024, ownership restricted accounts receivable is RMB 35,917,860 (31December 2023: RMB73,628,265), referring to Note V. 52.

(2) The ageing analysis of accounts receivable is as follows:

Ageing	2024	2023
Within 1 year (inclusive)	274,048,512	387,161,172
Over 1 year but within 2 years (inclusive)	747,104	2,367,283
Over 2 years but within 3 years (inclusive)	2,122,990	5,396,673
Over 3 years	1,523,718	365,654
Sub-total	278,442,324	395,290,782
Less: Provision for bad and doubtful debts	(7,612,723)	(13,158,448)
Total	270,829,601	382,132,334

The ageing is counted starting from the date when accounts receivable are recognised.

(3) Accounts receivable by provisioning method

At all times the Group measures the impairment loss for accounts receivable at an amountequal to lifetime ECLs, and the ECLs are based on the number of overdue days and the lossgiven default. According to the historical experience of the Group, there are no significantdifferences in the losses of different customer groups. Therefore, different customer groupsare not further distinguished when calculating impairment loss based on the overdueinformation.

2024

	Loss given default	Carrying amount at the end of the year	Impairment loss at the end of the year
Current	0.1%	245,292,444	265,047
Overdue for 1 to 30 days	1.5%	19,549,341	293,143
Overdue for 31 to 60 days	6.0%	4,278,753	256,562
Overdue for 61 to 90 days	15.4%	432,734	66,747
Overdue for 91 to 120 days	23.5%	605,044	142,111
Overdue for 121 to 150 days	30.7%	1,337,986	410,793
Overdue for 151 to 180 days	38.2%	558,511	213,620
Overdue for 181 to 210 days	46.0%	492,202	226,407
Overdue for 211 to 240 days	57.1%	56,462	32,224
Overdue for 241 to 270 days	83.6%	793,827	663,562
Overdue for 271 to 300 days	92.5%	33,343	30,830
Overdue for 301 to 330 days	100.0%	898,444	898,444
Overdue for 331 to 360 days	100.0%	780	780
Overdue for 360 days	100.0%	4,112,453	4,112,453
Total	2.7%	278,442,324	7,612,723

2023

	Loss given default	Carrying amount at the end of the year	Impairment loss at the end of the year
Current	0.2%	365,010,895	660,099
Overdue for 1 to 30 days	2.7%	14,276,606	384,812
Overdue for 31 to 60 days	10.8%	1,939,270	208,908
Overdue for 61 to 90 days	20.8%	443,199	92,141
Overdue for 91 to 120 days	37.2%	880,565	328,007
Overdue for 121 to 150 days	55.4%	874,822	485,022
Overdue for 151 to 180 days	55.4%	499,866	277,137
Overdue for 181 to 210 days	72.1%	497,356	358,689
Overdue for 211 to 240 days	77.1%	693,596	534,607
Overdue for 241 to 270 days	82.9%	980,610	812,545
Overdue for 271 to 300 days	88.9%	1,596,409	1,418,894
Overdue for 301 to 330 days	100.0%	9,150	9,150
Overdue for 331 to 360 days	100.0%	82,541	82,541
Overdue for 360 days	100.0%	7,505,897	7,505,896
Total	3.3%	395,290,782	13,158,448

The loss given default is measured based on the actual credit loss experience in the past 12months, and is adjusted taking into consideration the differences among the economicconditions during the historical data collection period, the current economic conditions andthe economic conditions during the expected lifetime.

(4) Movements of provisions for bad and doubtful debts:

	2024	2023
Balance at the beginning of the year	(13,158,448)	(14,556,106)
Charge for the year	(3,956,483)	(7,361,616)
Recoveries or reversals during the year	9,502,208	8,759,274
Balance at the end of the year	(7,612,723)	(13,158,448)

(5) Five largest accounts receivable by debtor at the end of the year:

Name	Relationship with the Group	Balance at the end of the year	Ageing	Percentage of ending balance of others (%)	Ending balance of provision for bad and doubtful debts
Debtor One	Third party	71,881,360	Within 1 year	25.8%	77,670
Debtor Two	Third party	16,123,936	Within 1 year	5.8%	150,769
Debtor Three	Third party	12,590,397	Within 1 year	4.5%	117,729
Debtor Four	Third party	9,460,951	Within 1 year	3.4%	88,466
Debtor Five	Third party	7,218,304	Within 1 year	2.6%	67,496
Total		117,274,948		42.1%	502,130

4 Receivables under financing

Item	Note	2024	2023
Bills receivable	(1)	230,960,211	408,316,028

(1) Pledged bills receivable by the Group at the end of the year:

As at 31 December 2024, there was no pledged bills receivable (31 December 2023: Nil).

(2) Outstanding endorsed or discounted bills that have not matured at the end of the year

Item	Amount derecognised at year end
Bank acceptance bills	261,965,866

As at 31 December 2024, bills endorsed by the Group to other parties which are not yet dueat the end of the period is RMB 261,965,866 (31 December 2022: RMB 394,923,505 ). Thenotes are used for payment to suppliers and constructions. The Group believes that due togood reputation of bank, the risk of notes not accepting by bank on maturity is very low,therefore derecognise the note receivables endorsed. If the bank is unable to pay the noteson maturity, according to the relevant laws and regulations of China, the Group wouldundertake limited liability for the notes.

5 Prepayments

(1) Prepayments by category:

Item	2024	2023
Prepayments	60,631,575	61,497,933

(2) The ageing analysis of prepayments is as follows:

Ageing	2024		2023
	Amount	Percentage (%)	Amount	Percentage (%)
Within 1 year (inclusive)	59,383,101	97.9%	61,468,643	99.9%
Over 1 year but within 2 years (inclusive)	1,248,474	2.1%	29,290	0.1%
Total	60,631,575	100.0%	61,497,933	100.0%

The ageing is counted starting from the date when prepayments are recognised.

(3) Five largest prepayments by debtor at the end of the year:

Name	Nature of the receivable	Balance at the end of the year	Ageing	Percentage of ending balance of others (%)	Ending balance of provision for bad and doubtful debts
Debtor One	Prepayments	28,736,338	Within 1 year	47.4%	-
Debtor Two	Prepayments	7,486,368	Within 1 year	12.3%	-
Debtor Three	Prepayments	5,965,968	Within 1 year	9.8%	-
Debtor Four	Prepayments	5,876,264	Within 1 year	9.7%	-
Debtor Five	Prepayments	5,344,237	Within 1 year	8.8%	-
Total		53,409,175		88.0%	-?

6 Other receivables

	31 December 2024	31 December 2023
Others	264,598,394	71,496,276

(1) Others by customer type:

Customer type	31 December 2024	31 December 2023
Amounts due from other companies	268,325,284	71,496,276
Sub-total	268,325,284	71,496,276
Less: Provision for bad and doubtful debts	(3,726,890)	-
Total	264,598,394	71,496,276

(2) The ageing analysis is as follows:

Ageing	2024	2023
Within 1 year (inclusive)	227,970,834	29,551,266
Over 1 year but within 2 years (inclusive)	583,562	39,753,227
Over 2 years but within 3 years (inclusive)	38,599,235	160,000
Over 3 years	1,171,653	2,031,783
Sub-total	268,325,284	71,496,276
Less: Provision for bad and doubtful debts	(3,726,890)	-
Total	264,598,394	71,496,276

The ageing is counted starting from the date when other receivables are recognised.

(3) Movements of provisions for bad and doubtful debts

	2024	2023
Balance at the beginning of the year	-	-
Charge for the year	(3,726,890)	-
Balance at the end of the year	(3,726,890)	-

As at 31 December 2024, the Group has no other receivables written off (31 December2023: Nil).

(4) Others categorised by nature

Nature of other receivables	2024	2023
Compensation receivable for the disposal of a vineyard (Note)	200,666,088	-
Land purchases and reserves receivable	37,268,902	37,768,902
Refund of consumption tax and VAT	15,560,239	19,104,008
Deposit	6,163,682	5,429,202
Housing maintenance funds	2,640,911	2,670,094
Petty cash receivable	28,781	154,354
Others	5,996,681	6,369,716
Sub-total	268,325,284	71,496,276
Less: Provision for bad and doubtful debts	(3,726,890)	-
Total	264,598,394	71,496,276

Note: The Company signed a Compensation Agreement with the People's Government of

Zhuqiao Town, Laizhou City and the People's Government of Yidao Town, Laizhou City(both collectively referred to as the “Transferees”) in December 2024. Pursuant to theCompensation Agreement, the Company transferred assets related to the vineyard inZhuqiao Town to the Transferees at an estimated valuation of RMB 221,284,768 asconsideration (compensation). After deducting compensation totalling RMB 19,618,680that have been paid to farmers and collectively owned assets, the actual compensationreceivable by the Company amounts to RMB 201,666,088 (tax inclusive). Thetransaction resulted in a decrease in the carrying value of the Company's bearerbiological assets and fixed assets of RMB 71,792,304 and RMB 36,629, respectively,and recognition of gains or losses from disposal of assets of RMB 127,400,859. As of 15April 2025, the Company has received a total of RMB 101,000,000 in compensation.

(5) Five largest others-by debtor at the end of the year

Name	Nature of the receivable	Balance at the end of the year	Ageing	Percentage of ending balance of others (%)	Ending balance of provision for bad and doubtful debts
Debtor One	Compensation receivable for the disposal of a vineyard	200,666,088	Within 1 year	74.8%	-
Debtor Two	Land purchases and reserves receivable	37,268,902	2-3 years	13.9%	3,726,890?
Debtor Three	Refund of VAT	14,350,724	Within 1 year	5.3%	?-
Debtor Four	Housing maintenance funds	2,640,911	1-2 years	1.0%	?-
Debtor Five	Others	1,650,000	Within 1 year	0.6%	?-
Total		256,576,625		95.6%	3,726,890

7 Inventories

(1) Inventories by category:

Item	2024			2023
	Book value	Provision for impairment of inventories	Carrying amount	Book value	Provision for impairment of inventories	Carrying amount
Raw materials	287,082,056	-	287,082,056	241,961,713	-	241,961,713
Work in progress	1,921,142,415	-	1,921,142,415	1,915,860,327	-	1,915,860,327
Finished goods	714,804,585	(18,958,500)	695,846,085	625,076,081	(17,507,534)	607,568,547
Total	2,923,029,056	(18,958,500)	2,904,070,556	2,782,898,121	(17,507,534)	2,765,390,587

(2) Provision for impairment of inventories:

Item	Opening balance	Increase during the year	Decrease during the year	Closing balance
		Recognised	Reversal
Finished goods	17,507,534	(18,958,500)	17,507,534	18,958,500

8 Other current assets

Item	2024	2023
Input tax to be credited	63,225,758	65,228,189
Right to recover returned goods	13,866,802	16,876,869
Prepaid income taxes	1,408,482	4,438,001
Deferred expenses	1,882,199	1,825,483
Sub-total	80,383,241	88,368,542
Less: Provision for bad and doubtful debts	-	-
Total	80,383,241	88,368,542

9 Long-term equity investments

(1) Long-term equity investments by category:

Item	2024	2023
Investments in joint ventures	32,797,631	37,018,893
Investments in associates	2,067,117	1,266,727
Sub-total	34,864,748	38,285,620
Less: Provision for impairment	-?	-
Total	34,864,748	38,285,620

(2) Movements of long-term equity investments during the year are as follows:

Investee	2024 Balance at the beginning of the year	Movements during the year		2024 Closing balance	Shareholding percentage
		New Investment	(Losses)/Profits from investments under equity-method l
Joint ventures		?	?	?	?
SAS L&M Holdings (“L&M Holdings”)	37,018,893	-	(4,221,262)	32,797,631	55%
Associates	?	?	?	?	?
Shanghai Yufeng Brand Management Co., Ltd. (Note1)	365,362	?-	18,358	383,720	10%
Yantai Guolong Wine Industry Co., Ltd. (Note1)	901,365	?-	(144,364)	757,001	10%?
Taizhou Changyu Winery Wine Sales Co., Ltd.("Taizhou Changyu”). (Note2)	-	1,000,000	(73,604)	926,396	10%
Sub-total	1,266,727	1,000,000	(199,610)	2,067,117
Total	38,285,620	1,000,000	(4,420,872)	34,864,748

Note 1: The Group has appointed one director to each of these investees.Note 2: The Group has appointed two directors to this investee.

10 Investment properties

	Plants and buildings
Cost
31 December 2023 and 31 December 2024	81,165,619
Accumulated depreciation	?
31 December 2023	(56,682,788)
Charge for the year	(2,522,380)
31 December 2024	(59,205,168)
Carrying amount	?
31 December 2024	21,960,451
31 December 2023	24,482,831

11 Fixed assets

(1) Fixed assets

Item	Plant & buildings	Machinery & equipment	Motor vehicles	Total
Cost
31 December 2023	5,882,104,759	2,811,522,051	24,268,214	8,717,895,024
Additions during the year	?	?	?	? ?
- Purchases	4,453,135	61,995,235	2,257,884	68,706,254
- Transfers from construction in progress	5,057,887	1,074,995	-	6,132,882
Disposals or written-offs during the year	(33,999,075)	(24,820,992)	(4,414,088)	(63,234,155)
31 December 2024	5,857,616,706	2,849,771,289	22,112,010	8,729,500,005
Accumulated depreciation	?	?	?	?
31 December 2023	(1,312,265,801)	(1,577,413,953)	(22,769,318)	(2,912,449,072)
Charge for the year	(157,070,918)	(141,017,363)	(1,418,191)	(299,506,472)
Disposals or written-offs during the year	18,618,413	22,052,343	3,819,961	44,490,717
31 December 2024	(1,450,718,306)	(1,696,378,973)	(20,367,548)	(3,167,464,827)
Provision for impairment	?	?	?	?
31 December 2023 and 31 December 2024	-	(10,363,383)	-	(10,363,383)
Carrying amount	?	?	?	?
31 December 2024	4,406,898,400	1,143,028,933	1,744,462	5,551,671,795
31 December 2023	4,569,838,958	1,223,744,715	1,498,896	5,795,082,569

As at 31 December 2024, ownership restricted net value of fixed assets is RMB 32,467,803(31 December 2023: 37,985,117), referring to Note V. 52.

(2) Temporarily idle fixed assets

Item	Cost	Accumulated depreciation	Provision for impairment	Carrying amount
Machinery equipment	29,423,698	(19,060,315)	(10,363,383)	-
Total	29,423,698	(19,060,315)	(10,363,383)	-

(3) Fixed assets leased out under operating leases

Item	Carrying amount at the end of the year
Plant & buildings	85,545,955
Machinery equipment	931

Fixed assets pending certificates of ownership

Item	Carrying amount	Reason why the certificates are pending
Dormitories, main building and reception building of Changan Chateau	252,909,228	Processing
European town, main building and service building of AFIP	153,027,262	Processing
Fermentation shop and workshop of Zhangyu (Ningxia)	5,849,794	Processing
Office, experiment building and workshop of Fermentation Centre	3,704,745	Processing
Fermentation shop of Zhangyu (Jingyang)	3,893,174	Processing
Finished goods warehouse and workshop of Kylin Packaging	1,852,782	Processing
Others	563,097	Processing

The buildings without property certificate above have no significant impact on the Group’smanagement.

12 Construction in progress

(1) Construction in progress

Project	2024			2023
	Book value	Provision for impairment	Carrying amount	Book value	Provision for impairment	Carrying amount
Upgrade of the production line of Noble Dragon	7,202,959	-?	7,202,959	-?	-?	-?
Upgrade of main building of AFIP	1,128,971	-?	1,128,971	-?	-?	-?
Nnigxia Chateau museum construction project	-	-?	-	1,376,147	-	1,376,147
Shihezi Chateau Construction Project	-?	-?	-?	700,000	-?	700,000
Other Companies’ Construction Project	1,845,442	-?	1,845,442	1,247,094	-	1,247,094
Total	10,177,372	-	10,177,372	3,323,241	-	3,323,241

(2) Movements of major construction projects in progress during the year

Item	Budget (RMB million)	Opening balance	Additions during the year	Transfers to fixed assets	Other transfers out	Closing balance	Percentage of actual cost to budget (%)	Accumulated capitalised interest	Attributable to: Interest capitalised for the year	Interest rate for capitalisation in 2024 (%)	Sources of funding
Upgrade of the production line of Noble Dragon	9	-	7,202,959	-	-	7,202,959	85%	-?	-?	-?	Self-raised
Upgrade of main building of AFIP	3	-	1,128,971	-	-	1,128,971	37%	-	-?	-?	Self-raised
Fermentation workshop and warehouse of Zhangyu (Ningxia)	5	-	5,057,887	(5,057,887)	-	-	100%	-	-?	-?	Self-raised
Shihezi Chateau Construction Project	780	700,000	-	-	(700,000)	-	100%	-?	-?	-?	Self-raised

13 Bearer biological assets

Bearer biological assets are vines, which measured in cost method.

Item	Immature biological assets	Mature biological assets	Total
Original book value
31 December 2023	32,791,446	248,838,320	281,629,766
Additions during the year	?	?	?
- Increase in cultivated	1,999,035	347,445	2,346,480
- Transferred to mature	(10,035,518)	10,035,518	-
Decrease during the year (Note)	(8,158,622)	(152,105,687)	(160,264,309)
31 December 2024	16,596,341	107,115,596	123,711,937
Accumulated amortisation	?	?	?
31 December 2023	-	(104,167,783)	(104,167,783)
Charge for the year	-	(13,833,533)	(13,833,533)
Decrease during the year (Note)	-	60,773,343	60,773,343
31 December 2024	-	(57,227,973)	(57,227,973)
Carrying amount	?	?	?
31 December 2024	16,596,341	49,887,623	66,483,964
31 December 2023	32,791,446	144,670,537	177,461,983

Note: A decrease in bearer biological assets during the year is mainly due to the Group's

disposal of the vineyard in Zhuqiao Town and the Mouziguo grape-growing base.

(1) The carrying value of the Group's bearer biological assets decreased by RMB

71,792,304 as a result of the disposal of the vineyard in Zhuqiao Town. See Note V. 6

(4) for details.

(2) The Group signed a Compensation Agreement with Yantai Zhihai AgriculturalProfessional Cooperative (“Zhihai Cooperative”) in December 2024, whereby theGroup transferred the Mouziguo grape-growing base at a consideration of RMB30,000,000 (tax inclusive) to Zhihai Cooperative. The transaction resulted in adecrease in the Company’s bearer biological assets and fixed assets of RMB17,159,765 and RMB 16,651,622, respectively, and recognition of losses from disposalof assets of RMB 4,183,849.

As at 31 December 2024, there is no biological asset with ownership restricted (31December 2023: Nil).

As at 31 December 2024, no provision for impairment of biological asset of the Group wasrecognised as there is no any indication exists (31 December 2023: Nil).

14 Right-of-use assets

As a lessee

Item	Plant&buildings	Lands	Others	Total
Cost
Balance at the beginning of the year	80,425,384	137,980,409	1,697,986	220,103,779
Additions during the year	2,184,052	-	-	2,184,052
Decreases during the year	(53,842)	(53,299,318)	-	(53,353,160)
Balance at the end of the year	82,555,594	84,681,091	1,697,986	168,934,671
Accumulated depreciation	?	?	?	?
Balance at the beginning of the year	(41,596,011)	(55,403,469)	(1,358,389)	(98,357,869)
Charge for the year	(15,966,192)	(4,438,690)	(339,597)	(20,744,479)
Decreases during the year	-	21,928,939	-	21,928,939
Balance at the end of the year	(57,562,203)	(37,913,220)	(1,697,986)	(97,173,409)
Carrying amounts	?	?	?	?
At the end of the year	24,993,391	46,767,871	-	71,761,262
At the beginning of the year	38,829,373	82,576,940	339,597	121,745,910

15 Intangible assets

Item	Land use rights	Software licenses	Trademarks	Total
Original book value
31 December 2023	444,520,847	102,888,216	189,715,738	737,124,801
Additions during the year	?	?	?	?
- Purchase	-	2,286,226	1,534,621	3,820,847
31 December 2024	444,520,847	105,174,442	191,250,359	740,945,648
Accumulated amortisation	?	?	?	?
31 December 2023	(108,815,810)	(69,678,463)	(16,004,752)	(194,499,025)
Additions during the year
- Charge for the year	(5,867,776)	(12,287,382)	(585,082)	(18,740,240)
31 December 2024	(114,683,586)	(81,965,845)	(16,589,834)	(213,239,265)
Carrying amount	?	?	?	?
31 December 2024	329,837,261	23,208,597	174,660,525	527,706,383
31 December 2023	335,705,037	33,209,753	173,710,986	542,625,776

As at 31 December 2024, the Group has land use right with infinite useful lives of RMB32,503,590 (31 December 2023: RMB32,863,731), representing the freehold land held byChile Indomita Wine Group and Australia Kilikanoon Estate under relevant Chile andAustralia laws, on which the amortisation is not required.

As at 31 December 2024, the Group has trademark with infinite useful lives of RMB156,740,196 (31 December 2023: RMB155,447,037), which is held by Chile Indomita WineGroup and Australia Kilikanoon Estate. The recoverable amount of the trademark isdetermined according to the present value of the expected future cash flows generated fromthe asset group to which the single assets of trademark right belongs. The managementprepares the cash flow projection for future 5 years (the “projecting period”) based on thelatest financial budget assumption, and estimates the cash flows after the future 5 years (the“subsequent period”). The pretax discount rates used in the cash flow projections are 12.5%and 13.6%,（2023：13.3%-13.9%）. The estimated long-term average growth rate of cashflows after 5 years is 0.0% - 2.0% (2023: 0.0% - 2.5%), which represents the long-termaverage growth rate for the industry or the region in which the company operates.

According to the result of impairment assessment, by the end of 31 December 2024, themanagement believes there is no impairment loss on those trademarks with infinite usefullives of the Group (31 December 2023: Nil).

As at 31 December 2024, there is no ownership restricted net value of intangible assets. (31December 2023: Nil ).

16 Goodwill

(1) Changes in goodwill

Name of investee or events from which goodwill arose	Note	31 December 2023	Additions during the year	Disposals during the year	31 December 2024
Original book value
Etablissements Roullet Fransac (“Roullet Fransac”)	(a)	13,112,525	-?	-?	13,112,525
Dicot Partners, S.L (“Dicot”)	(a)	92,391,901	-?	-?	92,391,901
Chile Indomita Wine Group	(a)	6,870,115	-?	-?	6,870,115
Australia Kilikanoon Estate	(a)	37,063,130	-?	-?	37,063,130
Sub-total		149,437,671	-	-	149,437,671
Impairment provision		?	?	?	?
Australia Kilikanoon Estate		(37,063,130)	-?	-?	(37,063,130)
Dicot Partners, S.L (“Dicot”)		(5,210,925)	(6,014,534)?	-?	(11,225,459)
Sub-total		(42,274,055)	(6,014,534)?	-	(48,288,589)
Carrying amount		107,163,616	(6,014,534)?	-	101,149,082

(a) The Group acquired Fransac Sales, Dicot and Mirefleurs, Chile Indomita Wine Group

and Australia Kilikanoon Estate in December 2013, September 2015, July 2017 andJanuary 2018 respectively, resulting in respective goodwill amounting toRMB13,112,525, RMB92,391,901, RMB 6,870,115 and RMB37,063,130. The goodwillhad been allocated to corresponding asset groups for impairment testing.

(2) Provision for impairment of goodwill

The Group has allocated the above goodwill to relevant asset groups for impairment testing.

As at 31 December 2024, Australia Kilikanoon Estate has made full provision for impairmentof goodwill and Atrio has made provision for impairment amounted to RMB 11,225,459 forthe current period.

The recoverable amount of the asset group is determined according to the present value ofthe expected future cash flows. The management prepares the cash flow projection forfuture 5 years (the “projecting period”) based on the latest financial budget assumption, andestimates the cash flows after the future 5 years (the “subsequent period”). The pretaxdiscount rate used in calculating the recoverable amounts of Roullet Fransac, Dicot, andMirefleurs, Indomita Wine are 11.8%, 11.7%, and 12.5%, respectively (2023: 10.7%, 9.1%,and 13.3%). The key assumption is the growth rate of annual revenue of relevantsubsidiaries, which is computed based on the expected growth rate of each subsidiary andlong-term average growth rates of relevant industries. The annual revenue growth rate forRoullet Fransac, Dicot, and Mirefleurs, Indomita Wine during the projecting period is 4.9% -

18.5% and the revenue growth rate during the subsequent period is 0.0% - 2.5%. Otherrelevant key assumption is budget gross profit margin, which is determined based on thehistorical performance of each subsidiary and its expectations for market development. Theaverage gross profit margin for the projecting period of Roullet Fransac, Dicot, andMirefleurs, Indomita Wine is 40.9% - 44.8% and the average gross profit margin during thesubsequent period is 40.9% - 45.6%.

17 Long-term deferred expenses

Item	31 December 2023	Additions during the year	Amortisation for the year	31 December 2024
Land requisition fee	43,264,838	-	(1,778,943)	41,485,895
Greening fee	110,315,085	-	(8,579,904)	101,735,181
Leasehold improvement	146,637,493	12,776,010	(10,092,888)	149,320,615
Others	6,444,691	1,014,007	(1,206,687)	6,252,011
Total	306,662,107	13,790,017	(21,658,422)	298,793,702

18 Deferred tax assets and deferred tax liabilities

(1) Deferred tax assets and liabilities

Item	31 December 2024		31 December 2023
	Deductible or taxable temporary differences	Deferred tax assets/ (liabilities)	Deductible or taxable temporary differences	Deferred tax assets/ (liabilities)
Deferred tax assets:
Provision for impairment of assets	40,661,496	10,437,775	41,029,365	10,563,366
Unrealised profits of intra-group transactions	417,770,236	104,442,560	403,653,124	100,913,281
Unpaid bonus	123,258,072	30,814,518	138,873,637	34,718,409
Termination benefits	6,739,412	1,684,853	8,475,845	2,118,961
Deductible tax losses	280,061,166	68,206,780	261,937,563	61,634,797
Deferred income	25,938,817	5,540,954	32,582,734	7,021,304
Effects of Restricted Share Incentive Plan	-??	-??	17,614,180	4,370,992
Effect of the lease standard	3,462,626	865,659	708,367	177,094
Sub-total	897,891,825	221,993,099	904,874,815	221,518,204
Deferred tax liabilities:	?	?	?	?
Revaluation due to business combinations involving entities not under common control	24,447,790	7,076,871	26,659,530	7,718,480
Effect of the lease standard	1,069,168	267,294	3,995,628	1,001,249
Sub-total	25,516,958	7,344,165	30,655,158	8,719,729

(2) Details of unrecognised deferred tax assets

Item	2024	2023
Deductible tax losses	478,477,359	420,651,124

(3) Expiration of deductible tax losses for unrecognised deferred tax assets

Year	2024	2023
2024	-?	36,171,778
2025	70,528,510	70,528,510
2026	60,274,856	68,479,171
2027	123,557,586	128,025,572
2028	117,444,729	117,446,093
2029	106,671,678	-?
Total	478,477,359	420,651,124

19 Other non-current assets

Item	2024	2023
Prepaid for Construction fee	3,554,409	1,760,000

20 Short-term loans

Item	2024	2023
Unsecured loans	63,222,270	178,605,850
Mortgaged loans	126,552,126	163,103,275
Guaranteed loans	26,365,950	23,272,320
Total	216,140,346	364,981,445

As at 31 December 2024, details of short-term borrowings were as follows:

	Amount	Amount	Nature of interest rate	Interest rate	Interest rate at the end of the year
		RMB		%	%
Mortgaged loans (USD)	12,375,000	90,634,266	Fixed	5.53% ~ 5.94%	5.53% ~ 5.94%
Credit loans (RMB)	50,000,000	50,000,000	Floating	1 YEAR LPR-0.95%	2.27%
Mortgaged loans (EUR)	4,772,694	35,917,860	Floating	3.41% ~4.65%	3.41% ~4.65%
Secured loan (AUD)	5,850,000	26,365,950	Floating	BBSW+1.5%	5.9%
Credit loans (USD)	1,000,000	7,323,981	Fixed	5.61%	5.61%
Credit loans (EUR)	783,753	5,898,289	Floating	3.41% ~4.65%	3.41% ~4.65%
Total	?	216,140,346	?	?	?

? As at 31 December 2024, mortgaged loans (EUR) were Hacienda y Vi?edos Marques delAtrio, S.L.U (“ Atrio “) factoring of accounts receivable from banks including BancoANTANDER、BBVA、CAIXABANK of EUR 4,772,694 (equivalent of RMB 35,917,860)(31 December 2023: EUR 9,368,417 (equivalent of RMB 73,628,264).

? On 31 December 2024, Chile Indomita Wine Group pledged its fixed assets to Banco

Scotiabank and Banco de Chile to borrow USD 12,375,000 (equivalent to RMB90,634,266) (31 December 2023: USD 12,625,000 (equivalent to RMB 89,475,011 ).

? On 31 December 2024, the secured loan represented the secured loan of Australia

Kilikanoon Estate of AUD5,850,000 (equivalent to RMB 26,365,950) (31 December 2023:

AUD 4,800,000, equivalent to RMB 23,272,320).

21 Accounts payable

(1) Details of accounts payable are as follows:

Ageing	2024	2023
Within 1 year (inclusive)	413,307,306	459,106,370
Over 1 year but within 2 years (inclusive)	2,486,147	10,654,983
Over 2 years but within 3 years (inclusive)	372,036	990,316
Over 3 years	1,344,950	2,600,856
Total	417,510,439	473,352,525

(2) There is no significant accounts payable with ageing of more than one year.

22 Contract liabilities

Item	As at 31 December 2024	As at 31 December 2023
Receipt in advance	127,855,694	174,757,233
Withholding sales rebates	234,659	521,616
Total	128,090,353	175,278,849

Contract liabilities primarily relate to the Group’s advances from sales contracts of specificcustomers and the withholding sales rebates. Relevant contract liabilities are recognised asrevenue when the control of the goods is transferred to the customer.

23 Employee benefits payable

(1) Employee benefits payable:

	Note	31 December 2023	Additions during the year	Decrease during the year	31 December 2024
Short-term employee benefits	(2)	176,534,963	433,947,987	(450,840,565)	159,642,385
Post-employment benefits - defined contribution plans	(3)	320,484	42,565,593	(42,562,957)	323,120
Termination benefits		8,475,845	2,040,462	(3,776,895)	6,739,412
Total		185,331,292	478,554,042	(497,180,417)	166,704,917

(2) Short-term employee benefits

	31 December 2023	Additions during the year	Decrease during the year	31 December 2024
Salaries, bonuses, allowances	173,350,251	383,410,051	(400,269,302)	156,491,000
Staff welfare	1,247,367	14,763,504	(14,740,774)	1,270,097
Social insurance	295,016	19,202,639	(19,195,603)	302,052
Medical insurance	295,016	17,600,108	(17,593,104)	302,020
Work-related injury insurance	-	1,387,614	(1,387,582)	32
Maternity insurance	-	214,917	(214,917)	-
Housing fund	38,582	12,564,213	(12,564,214)	38,581
Labour union fee, staff and workers’ education fee	1,603,747	4,007,580	(4,070,672)	1,540,655
Total	176,534,963	433,947,987	(450,840,565)	159,642,385

(3) Post-employment benefits - defined contribution plans

	31 December 2023	Additions during the year	Decrease during the year	31 December 2024
Basic pension insurance	319,251	41,355,245	(41,352,689)	321,807
Unemployment insurance	1,233	1,210,348	(1,210,268)	1,313
Total	320,484	42,565,593	(42,562,957)	323,120

24 Taxes payable

Item	2024	2023
Value-added tax	39,051,407	65,545,854
Consumption tax	40,806,933	50,879,210
Corporate income tax	88,479,855	134,574,175
Individual income tax	828,712	1,414,309
Tax on the use of urban land	2,301,066	1,730,986
Education surcharges	3,857,746	5,072,436
Urban maintenance and construction tax	5,372,605	6,787,018
Others	8,448,730	8,719,443
Total	189,147,054	274,723,431

25 Other payables

	Note	31 December 2024	31 December 2023
Others	(1)	398,149,521	555,634,336
Total		398,149,521	555,634,336

(1) Others

(a) Details of others by nature are as follows:

Item	2024	2023
Deposit payable to dealer	170,639,777	194,060,993
Advertising fee payable	44,729,221	104,815,517
Payables for repurchase of treasury shares	70,704,426	103,411,919
Trademarks	18,630,742	27,515,798
Freight charges payable	21,041,131	22,301,368
Deposits due to suppliers	16,515,150	18,284,971
Equipment and construction fee payable	13,160,841	14,832,439
Payables for equities	-	14,623,377
Contracting fee payable	3,179,094	3,360,355
Staff deposit	735,016	462,672
Others	38,814,123	51,964,927
Total	398,149,521	555,634,336

(b) There are no significant others aged over one year accured this year.

26 Other current liabilities

Item	2024	2023
Refund liabilities arising from rights of return	16,425,141	24,869,246
Tax to be transferred out as sales	24,339,101	20,089,051
Total	40,764,242	44,958,297

27 Non-current liabilities due within one year

Non-current liabilities due within one year by category are as follows:

Item	2024	2023
Long-term loans due within one year	61,161,578	58,510,868
Lease liabilities due within one year	18,788,191	20,013,125
Total	79,949,769	78,523,993

28 Long-term loans

Long-term loans by category

Item	Note	2024	2023
Credit loans		111,798,781	125,127,311
Less: Long-term loans due within one year	V.27	61,161,578	58,510,868
Total		50,637,203	66,616,443

As at 31 December 2024, details of long-term borrowings were as follows:

	Amount	Amount	Nature of interest rate	Interest rate	Interest rate at the end of the year	Long-term loans due within one year	Long-term loans due after one year
		RMB		%	%
Credit loans (EUR)	842,761	6,342,368	Fixed	2.80% - 4.65%	2.80% - 4.65%	2,394,178	3,948,190
Credit loans (EUR)	14,012,838	105,456,413	Floating	3.41% - 7.59%	3.41% - 7.59%	58,767,400	46,689,013
Total		111,798,781				61,161,578	50,637,203

As at 31 December 2024, Credit loans (EUR) were EUR 14,855,599 borrowed by BancoSantander, BBVA, Caja Rural de Navarr, Caixa Bank etc. (equivalent of RMB 111,798,781(31 December 2023: EUR15,921,126 , equivalent of RMB 125,127,311).

29 Lease liabilities

Item	Note	2024	2023
Long-term lease liabilities	?	46,331,020	105,051,460
Less: Lease liabilities due within one year	V.27	18,788,191	20,013,125
Total	?	27,542,829	85,038,335

The specific arrangement of leases activities of the Group refers to Note 53.

30 Deferred income

Item	31 December 2023	Additions during the year	Decrease during the year	31 December 2024
Government grants	32,582,734	3,174,000	(9,817,917)	25,938,817

Government grants:

Liability	31 December 2023	Additions of government grants during the year	Amounts recognised in other income during the year	31 December 2024	Related to assets/income
Industrial development support project	12,300,000	-	(4,100,000)	8,200,000	Government grants related to assets
Retaining wall subsidies	8,835,333	-	(988,000)	7,847,333	Government grants related to assets
Xinjiang industrial revitalisation and technological transformation project	8,532,000	-	(1,422,000)	7,110,000	Government grants related to assets
Wine fermentation capacity construction project	1,200,000	-	(1,200,000)	-	Government grants related to assets
Special fund for efficient water-saving irrigation project	829,000	-	(162,000)	667,000	Government grants related to assets
Subsidy for economic and energy-saving technological transformation projects	384,900	-	(128,300)	256,600	Government grants related to assets
Subsidies for construction of scenic spots	245,784	-	(50,600)	195,184	Government grants related to assets
Subsidy for mechanic development of Penglai Daliuhang Base	55,717	-	(55,717)	-	Government grants related to assets
Improvement of service facilities in scenic spots	-?	264,000	-?	264,000	Government grants related to assets
The “Ten-Hundred-Thousand Program” leisure agriculture subsidies from Jugezhuang government	200,000	150,000	(350,000)	-	Related to income
Technology research and industrial subsidies for utilizing China-produced oak for winemaking	-?	2,760,000	(1,361,300)	1,398,700	Related to income
Total	32,582,734	3,174,000	(9,817,917)	25,938,817

31 Share capital

	Balance at the beginning of the year	Changes during the year		Balance at the end of the year
		Release of lock-up shares	Cancellation of repurchased shares
Unrestricted RMB ordinary shares	453,460,800	1,720,495	-?	455,181,295
Restricted RMB ordinary shares (Note1)	6,785,559	(1,720,495)	(425,666)	4,639,398
Foreign shares listed domestically (Note2)	232,003,200	-?	(19,999,993)	212,003,207
Total shares	692,249,559	-	(20,425,659)	671,823,900

Note1: The Proposal on the Company’s 2023 Restricted Share Incentive Plan (Draft) and

Relevant Summary and the Proposal on the Request for the Authorisation to theBoard of Directors by the General Meetings of Shareholders to Handle Mattersrelated to the Company’s 2023 Restricted Share Incentive Plan were passed byresolutions in the Group’s 2022 General Meetings of Shareholders held on 26 May2023. In addition, the Proposal on the Adjustments to Matters related to 2023Restricted Share Incentive Plan and the Proposal on the Granting of RestrictedShares to Incentive Objects under the 2023 Restricted Share Incentive Plan werereviewed and passed in the 2023 first extraordinary Board meeting held on 26 June2023 (hereinafter referred to as the “Restricted Share Incentive Plan”, see Note XIIIfor details). The Group determined to grant 6,850,000 restricted shares to 204incentive objects at a grant price of RMB15.24 per share on 26 June 2023 (the grantdate). A total of 203 incentive objects of the Group actually subscribed for 6,785,559restricted shares at a grant price of RMB15.24 per share. The transaction increasedthe Company’s registered capital by RMB6,785,559, increased the capital reserve byRMB96,626,360 and recognised the repurchase obligation on restricted shares ofRMB103,411,919.

The Group convened the Second Meeting of the Remuneration Committee of theBoard of Directors for 2024, the Fourth Extraordinary Board Meeting for 2024 and theSecond Extraordinary Supervisory Committee Meeting for 2024 on 22 July 2024, atwhich the Proposal on Satisfaction of the Release of Lock-up Shares Granted underthe Company’s 2023 Restricted Share Incentive Plan in the First Unlocking Periodand the Proposal on the Repurchase and Cancellation of Certain Restricted SharesGranted under the Company’s 2023 Restricted Share Incentive Plan and Adjustmentof Repurchase Price were reviewed and approved. The Proposal on the Repurchaseand Cancellation of Certain Restricted Shares Granted under the Company’s 2023Restricted Share Incentive Plan and Adjustment of Repurchase Price was reviewedand approved according to the resolution of the Third Extraordinary General Meetingon 8 August 2024. 172 incentive participants held the first tranche of restricted shareseligible for unlocking in 2024, and the total number of restricted shares unlocked was1,720,495. These unlocked shares were listed and traded on 6 August 2024. Someincentive participants no longer met the conditions of the Company’s 2023 RestrictedShare Incentive Plan as they have left the Company due to individual reasons or gotjob transfer, and 157,790 restricted shares that have been granted to them but not yetunlocked were repurchased and cancelled. 267,876 restricted shares that cannot be

unlocked during the first unlocking period due to personal performance appraisalresults were repurchased and cancelled. The number of restricted shares that havebeen repurchased and cancelled were 425,666 in total. The transaction resulted in adecrease of RMB425,666 in the Group’s share capital, a decrease of RMB6,061,484in capital reserve.

Note2: The Group convened the First Extraordinary Board Meeting for 2024 on 22 February

2024 and the First Extraordinary General Meeting for 2024 on 11 March 2024 toreview and approve the Proposal on Repurchasing Certain Domestically ListedForeign Shares (B Shares) of the Company. As of 17 July 2024, the Grouprepurchased a total of 19,999,993 B shares by way of call auction through the specialaccount for repurchase, totalling RMB178,084,318. The Group completed thecancellation of the repurchased shares with the Shenzhen Branch of China SecuritiesDepository and Clearing Co., Ltd. on 8 November 2024. The transaction resulted in adecrease of RMB 19,999,993 in the Group's share capital and a decrease of RMB158,084,325 in capital reserve.

32 Capital reserve

Items	Note	31 December 2023	Additions during the year	Decrease during the year	31 December 2024
Share premium	(1)	615,678,532	-	(164,145,809)	451,532,723
Others	(2)	35,408,175	?-	(4,797,351)	30,610,824
Total	?	651,086,707	-	(168,943,160)	482,143,547

(1) During the reporting period, the Group repurchased and cancelled 19,999,993 B shares

of the Company, resulting in a decrease of RMB 158,084,325 in share premium. Referto Note V. 31 for details.

During the reporting period, the Group repurchased and cancelled 425,666 restrictedshares, resulting in a decrease of RMB 6,061,484 in share premium. See Note V. 31 fordetails.

(2) During the reporting period, based on the best estimate of the number of equity

instruments granted under the Group’s Restricted Share Incentive Plan, capital reservedecreased by RMB 4,016,468 due to confirmation of amortization expenses, refer toNoteXIII.1.

During the reporting period, the difference between the long-term equity investmentsobtained by the Group due to the purchase of minority equity and the share of net assetsof the subsidiary calculated continuously since the purchase date according to the newlyincreased shareholding ratio reduced the capital reserve by RMB 780,883, refer toNoteVIII.2..

33 Treasury shares

Item	Balance at the beginning of the year	Additions during the year	Decrease during the year	Balance at the end of the year
Treasury shares	103,411,919	178,084,318	(210,791,811)	70,704,426
Total	103,411,919	178,084,318	(210,791,811)	70,704,426

During the reporting period, the Group's treasury shares decreased by RMB 26,220,343 dueto the unlocking of shares granted under the Group’s Restricted Share Incentive Plan. TheGroup's treasury shares also decreased by RMB 6,487,150 as some incentive participantshave left the Company due to individual reasons or got job transfer and no longer met theconditions of the Company's 2023 Restricted Share Incentive Plan.

The Group repurchased and cancelled 19,999,993 B shares, resulting in an increase anddecrease in treasury shares of RMB 178,084,318 respectively during the period. Please referto note V.31.

34 Other comprehensive income

Item	Balance at the beginning of the year attributable to shareholders of the Company	Accrued during the year					Balance at the end of the year attributable to shareholders of the Company
		Before-tax amount	Less: Previously recognised amount transferred to profit or loss	Less: Income tax expenses	Net-of-tax amount attributable to shareholders of the Company	Net-of-tax amount attributable to non-controlling interests
Items that may be reclassified to profit or loss
Translation differences arising from translation of foreign currency financial statements	(14,784,677)	(27,197,923)	-	-	(24,930,295)	(2,267,628)	(39,714,972)

35 Surplus reserve

Item	31 December 2024	31 December 2023
Statutory surplus reserve	342,732,000	342,732,000

In accordance with the Company Law and the Articles of Association Company, the Companyappropriated 10% of its net profit to statutory surplus reserve. The appropriation to thestatutory surplus reserve may be ceased when the accumulated appropriation reaches over50% of the registered capital of the Company. The Company does not appropriate net profitto the surplus reserve in 2024 as surplus reserve of the Company is above 50% of theregistered capital.

The Company can appropriate discretionary surplus reserve after appropriation of thestatutory surplus reserve. Discretionary surplus reserve can be utilised to offset the deficit orincrease the share capital after approval.

36 Retained earnings

Item	Note	2024	2023
Retained earnings at the beginning of the year		9,273,629,318	9,049,649,211
Add: Net profits for the year attributable to shareholders of the Company		305,210,999	532,438,907
Less: Dividends to ordinary shares	(1)	(345,911,947)	(308,458,800)
Retained earnings at the end of the year	(2)	9,232,928,370	9,273,629,318

(1) Dividends in respect of ordinary shares declared during the year

As approved by the general meeting of shareholders on May 17, 2024, the Companydistributed cash dividends of RMB 0.5 per share (2023: RMB 0.45 per share) to commonshareholders on June 17, 2024 and June 19, 2024, totaling RMB346,124,780 (2023:

RMB308,458,800).

During the reporting period, the Group repurchased and cancelled 425,666 restricted sharesgranted under the Group’s Restricted Share Incentive Plan, and recovered cash dividends ofRMB 212,833.

(2) Retained earnings at the end of the year

As at 31 December 2024, the consolidated retained earnings attributable to the Companyincluded an appropriation of RMB 64,459,076 (2023: RMB 55,900,659 ) to surplus reservemade by the subsidiaries.

37 Operating income and operating costs

Item	2024		2023
	Income	Cost	Income	Cost
Principal activities	3,196,761,585	1,360,000,070	4,309,556,631	1,754,792,956
Other operating activities	80,516,762	32,602,329	75,207,704	32,190,701
Total	3,277,278,347	1,392,602,399	4,384,764,335	1,786,983,657
Including: Revenue from contracts with customers	3,271,223,512	1,387,836,538	4,380,255,840	1,783,149,498
Rent income	6,054,835	4,765,861	4,508,495	3,834,159

(1) Disaggregation of revenue from contracts with customers:

Type of contract	2024	2023
By type of goods or services
- Liquor	3,196,761,585	4,309,556,631
- Others	74,461,927	70,699,209
By timing of transferring goods or services	?
- Revenue recognised at a point in time	3,271,223,512	4,380,255,840

(2) Geographical regions of operating income and operating costs：

Type of contract	2024		2023
	Income	Cost	Income	Cost
By geographical regions
- China	2,685,914,511	1,031,980,984	3,761,534,793	1,378,286,484
- Other countries and regions	591,363,836	360,621,415	623,229,542	408,697,173
Total	3,277,278,347	1,392,602,399	4,384,764,335	1,786,983,657

38 Taxes and surcharges

Item	2024	2023
Consumption tax	185,547,704	239,887,676
Urban maintenance and construction tax	23,268,173	35,197,172
Education surcharges	16,775,249	23,177,137
Property tax	33,918,780	34,003,219
Tax on the use of urban land	9,869,535	10,331,175
Stamp duty	4,022,461	5,289,257
Others	360,727	1,849,935
Total	273,762,629	349,735,571

39 Selling and distribution expenses

Item	2024	2023
Marketing fee	322,040,390	490,535,793
Salaries and benefits	294,724,158	313,083,923
Labour service fee	86,440,275	93,243,814
Advertising fee	63,037,709	75,527,637
Depreciation expense	51,846,831	48,882,915
Design and production fee	19,561,846	32,182,656
Travelling expenses	29,989,425	29,318,913
Trademarks expenses	17,770,743	27,515,798
Storage rental	25,233,942	27,290,488
Conference fee	16,578,022	19,309,557
Water, electricity and gas fee	12,987,461	16,830,073
Others	72,769,618	66,061,209
Total	1,012,980,420	1,239,782,776

40 General and administrative expenses

Item	2024	2023
Salaries and benefits	96,337,276	87,857,355
Depreciation expenses	99,816,234	89,486,538
Repair costs	12,001,516	11,978,855
Administrative expenses	19,512,898	19,929,523
Amortisation of greening fee	17,550,658	17,409,398
Amortisation expenses	15,903,477	16,202,523
Safety production costs	9,793,378	10,743,063
Security and cleaning fee	8,593,907	8,326,301
Contracting fee	3,913,648	4,337,738
Others	30,488,889	37,719,564
Total	313,911,881	303,990,858

41 Financial expenses

Item	2024	2023
Interest expenses from loans and payables	30,125,387	31,297,810
Interest expenses from lease liabilities	4,136,343	4,502,287
Interest income from deposits	(34,643,667)	(30,571,465)
Exchange losses	10,911,603	5,002,117
Other financial expenses	2,306,407	852,710
Total	12,836,073	11,083,459

42 Other income

Item	2024	2023	Related to assets/income
Industrial development support project	4,100,000	4,100,000	Government grants related to assets
Xinjiang Industrial Revitalization and Technological Transformation Project	1,422,000	1,422,000	Government grants related to assets
Wine production capacity construction project	1,200,000	400,000	Government grants related to assets
Subsidies for retaining wall	988,000	638,000	Government grants related to assets
Special funds for the maintenance of wine cellars	-	2,079,711	Government grants related to assets
Engineering technology transformation of information system project	-	580,000	Government grants related to asse
Others - Government grants related to assets	396,617	329,207	Government grants related to assets
Special funds for the development of enterprises	16,700,000	9,237,716	Related to income
Tax rebates	13,297,771	19,533,196	Related to income
Regional sales incentive fund	2,800,000	-	Related to income
Talent development funds from Shihezi government	2,200,000	1,500,000	Related to income
Wine Industry Development Project	1,224,301	2,684,281	Related to income
Funds for the integration development project of agricultural industry	536,000	1,000,000	Related to income
Others - Government grants related to income	7,749,221	8,019,688	Related to income
Total	52,613,910	51,523,799

Other income during reporting period has been included in non-recurring gains and losses.

43 Investment (losses) /income

Investment (losses) /income by items

Item	2024	2023
Long-term equity investment losses under equity method	(4,420,872)	(712,480)
Investment profit/(loss) arising from disposal of subsidiaries and long-term equity investments	-	24,559,930
Total	(4,420,872)	23,847,450

44 Credit reversal

Item	2024	2023
Accounts receivable	5,545,725	1,397,658
Other receivable	(3,726,890)	-?
Total	1,818,835	1,397,658

45 Impairment losses

Item	2024	2023
Fixed assets	-?	10,363,383
Inventories	1,450,966	3,143,575
Goodwill	6,014,534	-
Total	7,465,500	13,506,958

46 Gains/(loss) from asset disposals

Item	2024	2023
Gains/(loss) from asset disposals	132,116,926	(134,133)

Note: The Group's gains on disposal of assets in 2024 mainly include proceeds of RMB127,400,859 from the disposal of the vineyard in Zhuqiao Town., please refer to Note V.6.

Gains from disposal of assets during reporting period has been included in non-recurringgains and losses.

47 Non-operating income and non-operating expenses

(1) Non-operating income by item is as follows:

Item	2024	2023
Insurance compensation	1,709,700	452,242
Net income from fine	1,501,900	9,325,229
Others	1,766,330	2,214,799
Total	4,977,930	11,992,270

Non-operating income during reporting period has been included in non-recurring gains andlosses.

(2) Non-operating expenses

Item	2024	2023
Losses from disposal of non-current assets	1,868,546	573,560
Donations provided	1,416,240	1,212,015
Compensation, penalty and fine expenses	127,736	80,403
Losses from scrapping of packaging materials	-	1,137,256
Others	320,552	425,176
Total	3,733,074	3,428,410

Non-operating expenses during reporting period has been included in non-recurring gainsand losses.

48 Income tax expenses

Item	Note	2024	2023
Current tax expense for the year based on tax law and regulations		115,078,031	216,588,992
Changes in deferred tax assets/liabilities	(1)	(1,850,459)	4,844,455
Total		113,227,572	221,433,447

(1) The analysis of changes in deferred tax is set out below:

Item	2024	2023
Origination of temporary differences	(1,850,459)	4,844,455
Total	(1,850,459)	4,844,455

(2) Reconciliation between income tax expenses and accounting profit:

Item	2024	2023
Profit before taxation	427,554,857	747,466,156
Estimated income tax at 25%	106,888,714	186,866,539
Effect of different tax rates applied by subsidiaries	1,503,486	2,070,828
Effect of non-taxable income (Note)	(25,961,339)	-
Effect of non-deductible costs, expense and losses	6,891,065	4,978,035
Effect of using deductible losses for which no deferred tax asset was recognized in previous periods	(3,134,547)	-
Effect of deductible losses of deferred tax assets not recognised for the year	25,217,629	25,756,996
Deferred tax assets written-off	1,822,564	1,761,049
Income tax expenses	113,227,572	221,433,447

Note: In December 2024, the Company recognized gains or losses from disposal of assets ofRMB 127,400,859 due to the disposal of assets related to the vineyard in Zhuqiao Town,among which gains from disposal of biological assets amounted to RMB103,845,356. SeeNote V. 6 for details.

49 Basic earnings per share and diluted earnings per share

(1) Basic earnings per share

Basic earnings per share is calculated as dividing consolidated net profit attributable toordinary shareholders of the Company by the weighted average number of ordinary sharesoutstanding:

	2024	2023
Consolidated net profit attributable to ordinary shareholders of the Company	305,210,999	532,438,907
Weighted average number of ordinary shares outstanding	684,370,832	685,464,000
Basic earnings per share (RMB/share)	0.45	0.78

Weighted average number of ordinary shares is calculated as follows:

	2024	2023
Issued ordinary shares at the beginning of the year	685,464,000	685,464,000
Effect of repurchasing shares	(1,666,666)	-
Effects of unlocking of ordinary shares subject to sales restrictions	573,498	-
Weighted average number of ordinary shares at the end of the year	684,370,832	685,464,000

(2) Diluted earnings per share

Diluted earnings per share is calculated by dividing consolidated net profit (diluted)attributable to ordinary shareholders of the Company by the weighted average number ofordinary shares outstanding (diluted):

?	Note	2024	2023
Consolidated net profit attributable to ordinary shareholders of the Company (Dilute)	(a)	305,210,999	532,438,907
Weighted average number of ordinary shares outstanding (Dilute)	(b)	684,370,832	685,670,893
Diluted earnings per share (RMB/share)		0.45	0.78

(a) Consolidated net profit attributable to ordinary shareholders of the Company (diluted) is

calculated as follows:

	2024	2023
Consolidated net profit attributable to ordinary shareholders of the Company	305,210,999	532,438,907
Consolidated net profit attributable to ordinary shareholders of the Company (diluted)	305,210,999	532,438,907

(b) The weighted average number of the Company’s ordinary shares (diluted) is calculated

as follows:

?	2024	2023
Weighted average number of ordinary shares at 31 December	684,370,832	685,464,000
Diluted adjustments:	?	?
Effects of restricted shares	-	206,893
Weighted average number of ordinary shares (diluted) at the end of the year	684,370,832	685,670,893

50 Cash flow statement

(1) Cash relating to operating activities

a. Proceeds relating to other operating activities:

Item	2024	2023
Government grants	45,969,993	45,677,242
Interest income from bank	29,707,469	27,375,399
Penalty income	1,501,900	9,325,229
Recovery of prior years’ trademarks right receivables	-	120,930,641
Others	3,857,611	16,077,111
Total	81,036,973	219,385,622

b. Payments relating to other operating activities:

Item	2024	2023
Selling and distribution expenses	512,511,750	539,874,320
General and administrative expenses	105,557,429	99,254,521
Others	23,092,431	36,569,908
Total	641,161,610	675,698,749

(2) Cash relating to investing activities

a. Proceeds relating to significant investing activities:

Item	2024	2023
Recovery of fixed deposits	464,200,000	238,200,000

b. Payments relating to significant investing activities:

Item	2024	2023
Investments in fixed deposits	288,650,000	464,200,000
Acquisition of fixed assets and construction in progress	74,604,013	110,067,855
Total	363,254,013	574,267,855

(3) Cash relating to financing activities

a. Proceeds relating to other financing activities:

Item	2024	2023
Repurchase of treasury shares(Note V.33)	178,084,318	-
Cancellation of restricted shares (Note V.33)	6,487,150	-
Cash paid for lease	26,235,103	31,931,214
Payment for acquisition of non-controlling interests	16,506,915	14,623,400
Payment of capital reduction	-	20,674,509
Total	227,313,486	67,229,123

b. Changes in liabilities arising from financing activities

	Balance at the beginning of the year	Additions during the year		Decreases during the year		Balance at the end of the year
		Cash	Non-cash	Cash	Non-cash
Short-term loan	364,981,445	459,993,522	-	(608,834,621)	-	216,140,346
Long-term loan	66,616,443	47,965,738	-	-	(63,944,978)	50,637,203
Lease liabilities	85,038,335	-	2,184,052	(2,085,636)	(57,593,922)	27,542,829
Non-current liabilities due within one year	78,523,993	-	82,733,169	(81,307,393)	-	79,949,769
Other accounts payable - dividends payable	-	-	347,336,613	(347,336,613)	-	-
Other accounts payable - interest payable	-	-	34,261,730	(34,261,730)	-	-
Other accounts payable - payables for equities	14,623,377	-	1,883,538	(16,506,915)	-	-
Other accounts payable - payables for repurchase of treasury shares	103,411,919	-	-	(6,487,150)	(26,220,343)	70,704,426
Total	713,195,512	507,959,260	468,399,102	(1,096,820,058)	(147,759,243)	444,974,573

51 Supplementary information on cash flow statement

(1) Supplement to cash flow statement

a. Reconciliation of net profit to cash flows from operating activities:

Item	2024	2023
Net profit	314,327,285	526,032,709
Add: Credit/asset impairment losses	5,646,665	12,109,300
Depreciation of fixed assets and investment property	302,028,852	317,061,135
Amortisation of intangible assets	18,740,240	16,932,862
Amortisation of long-term deferred expenses	21,658,422	18,514,442
Amortisation of productive biological assets	13,833,533	13,800,290
Depreciation of ROU assets	20,744,479	22,107,603
(Profits)/losses from disposal of fixed assets, intangible assets, and other long-term assets	(132,116,926)	707,693
Financial expenses	32,778,256	32,287,868
Equity incentive (reversal)/expenses	(4,016,467)	30,735,755
Investment losses/(profits)	4,420,872	(23,847,450)
(Increase)/decrease in deferred tax assets	(474,895)	5,174,683
Decrease in deferred tax liabilities	(1,375,564)	(330,228)
(Increase)/decrease in gross inventories	(140,130,935)	131,877,015
Decrease/(increase) in operating receivables	268,230,903	(54,231,481)
(Decrease)/increase in operating payables	(326,553,653)	124,159,547
Net cash flows from operating activities	397,741,067	1,173,091,743

b. Significant investing and financing activities not requiring the use of cash:

Item	2024	2023
Payment of construction in progress and other long-term assets by bank acceptances	37,753,184?	13,226,592

c. Change in cash and cash equivalents:

Item	2024	2023
Cash equivalents at the end of the year	1,717,727,551	1,963,155,752
Less: Cash equivalents at the beginning of the year	1,963,155,752	1,612,753,600
Net (decrease)/increase in cash and cash equivalents	(245,428,201)	350,402,152

(2) Details of cash and cash equivalents

Item	2024	2023
Cash at bank and on hand
Including: Cash on hand	27,228	74,951
Bank deposits available on demand	1,718,853,539	1,963,080,801
Closing balance of cash and cash equivalents	1,718,880,767	1,963,155,752

52 Assets with restrictive ownership title or right of use

Item	Opening balance	Balance at the end of the year	Reason for restriction
Cash at bank and on hand	337,895	1,470,579	The Company deposits and Escrow account for migrant workers' wages etc.
Account receivable (i)	73,628,265	35,917,860?	Short-term borrowings mortgage from Atrio
Fixed assets	37,985,117	32,467,803?	Short-term borrowings from Dicot
Total	111,951,277	69,856,242

(i) As at 31 December 2024, the amount of accounts receivable with restricted ownership

is EUR 4,772,694 , equivalent of RMB 35,917,860 hich refers to accounts receivableAtrio conducted for factoring from Banco de Sabadell, S.A. Etc. (31 December 2023:

EUR 9,368,417, equivalent of RMB 73,628,265).

53 Leases

(1) As a lessee

Item	2024	2023
Short-term lease expenses for which the practical expedient has been applied	386,346?	527,463
Total cash outflow for leases	26,621,449?	32,458,677

The Group leases buildings and motor vehicles with the lease terms of 1 year or less, and allof these leases are short-term leases. The Group has elected not to recognise right-of-useassets and lease liabilities for these leases.

(2) As a lessor

Item	2024	2023
Lease income	6,054,835	4,508,495

The Group leased out some machineries in 2023 and 2024 with a lease term within 1year. The Group has classified these leases as operating leases, because they do nottransfer substantially all of the risks and rewards incidental to the ownership of theassets.

The undiscounted lease receipts to be received by the Group after the balance sheet date areas follows:

Item	2024	2023
Within 1 year (inclusive)	5,872,890	5,958,604
Over 1 year but within 2 years (inclusive)	5,872,890	5,872,890
Over 2 years but within 3 years (inclusive)	5,850,872	5,872,890
Over 3 years but within 4 years (inclusive)	1,941,507	5,850,872
Over 4 years but within 5 years (inclusive)	-	1,941,507
Total	19,538,159	25,496,763

VI. Research and development expenses

Presentation by nature

Item	2024	2023
Salaries	7,362,919	6,564,884
Diagnostic test fees	2,600,375	3,448,000
Consultancy fee	1,412,609	3,039,519
Material consumption	4,242,275	2,212,169
Others	3,920,065	2,148,962
Total	19,538,243	17,413,534
Including: research and development expenditures that are expensed	19,538,243	17,413,534

VII. Change of consolidation scope

The Group’s subsidiaries - Liaoning Changyu Ice Wine Winery Co., Ltd.,merged Changyu (Huanren) Grape Wine Co., Ltd. ("Huanren Wine") inDecember 2024.

VIII. Interests in other entities

1 Interests in subsidiaries

(1) Composition of the Group

Name of the Subsidiary	Principal place of business	Registered place	Business nature	Registered capital	Shareholding ratio (%)		Acquisition method
					(or similar equity interest)
Etablissements Roullet Fransac (“Roullet Fransac”)	Cognac, France	Cognac, France	Trading	EUR29,000	-	100	Business combinations involving entities not under common control
Dicot Partners, S.L (“Dicot”)	Navarre, Spain	Navarre, Spain	Marketing and sales	EUR2,000,000	90	-	Business combinations involving entities not under common control
Vi?a Indómita, S.A., Vi?a Dos Andes, S.A., and BodegasSantaAlicia SpA.. (“Chile Indomita Wine Group”)	Santiago, Chile	Santiago, Chile	Marketing and sales	CLP31,100,000,000	85	-	Acquired through establishment or investment
Kilikanoon Estate Pty Ltd. (“Australia Kilikanoon Estate”)	Adelaide, Australia	Adelaide, Australia	Marketing and sales	AUD6,420,000	99	-	Business combinations involving entities not under common control
Beijing Changyu Sales and Distribution Co., Ltd. (“Beijing Sales”)	Beijing, China	Beijing, China	Marketing and sales	RMB1,000,000	100	-	Acquired through establishment or investment
Yantai Kylin Packaging Co., Ltd. (“Kylin Packaging”)	Yantai, Shandong, China	Yantai, Shandong, China	Manufacturing	RMB15,410,000	100	-	Acquired through establishment or investment
Yantai Chateau Changyu-Castel Co., Ltd.(“Chateau Changyu”) (a)	Yantai, Shandong, China	Yantai, Shandong, China	Manufacturing	USD5,000,000	70	-	Acquired through establishment or investment
Changyu (Jingyang) Wine Co., Ltd. (“Jingyang Wine”)	Xianyang, Shaanxi, China	Xianyang, Shaanxi, China	Manufacturing	RMB1,000,000	90	10	Acquired through establishment or investment
Yantai Changyu Pioneer Wine Sales Co., Ltd. (“Sales Company”)	Yantai, Shandong, China	Yantai, Shandong, China	Marketing and sales	RMB8,000,000	100	-	Acquired through establishment or investment
Shanghai Changyu Sales and Distribution Co., Ltd. (“Shanghai Sales”)	Shanghai, China	Shanghai, China	Marketing and sales	RMB1,000,000	100	-	Acquired through establishment or investment

Name of the Subsidiary	Principal place of business	Registered place	Business nature	Registered capital	Shareholding ratio (%)		Acquisition method
					(or similar equity interest)
Yantai Changyu Wine Sales Co., Ltd. (“Wines Sales”)	Yantai, Shandong, China	Yantai, Shandong, China	Marketing and sales	RMB5,000,000	90	10	Acquired through establishment or investment
Yantai Changyu Pioneer International Co., Ltd. (“Pioneer International”)	Yantai, Shandong, China	Yantai, Shandong, China	Marketing and sales	RMB5,000,000	70	30	Acquired through establishment or investment
Hangzhou Changyu Wine Sales Co., Ltd. (“Hangzhou Changyu”)	Hangzhou, Zhejiang, China	Hangzhou, Zhejiang, China	Marketing and sales	RMB500,000	-	100	Acquired through establishment or investment
Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”)	Yinchuan, Ningxia, China	Ningxia, China	Plating	RMB1,000,000	100	-	Acquired through establishment or investment
Huanren Changyu National Wines Sales Co., Ltd. (“National Wines”)	Benxi, Liaoning, China	Benxi, Liaoning, China	Marketing and sales	RMB2,000,000	100	-	Acquired through establishment or investment
Liaoning Changyu Golden Icewine Valley Co., Ltd. (“Golden Icewine Valley”)	Benxi, Liaoning, China	Benxi, Liaoning, China	Manufacturing	RMB64,687,300	100	-	Acquired through establishment or investment
Yantai Development Zone Changyu Trading Co., Ltd. (“Development Zone Trading”)	Yantai, Shandong, China	Yantai, Shandong, China	Marketing and sales	RMB5,000,000	-	100	Acquired through establishment or investment
Beijing AFIP Meeting Center (“Meeting Center”)	Miyun, Beijing, China	Miyun, Beijing, China	Services	RMB500,000	-	100	Acquired through establishment or investment
Beijing AFIP Tourism and Culture (“AFIP Tourism”)	Miyun, Beijing, China	Miyun, Beijing, China	Tourism	RMB500,000	-	100	Acquired through establishment or investment
Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”)	Ningxia, China	Ningxia, China	Manufacturing	RMB1,000,000	100	-	Acquired through establishment or investment
Yantai Changyu Chateau Tinlot Co., Ltd. (“Chateau Tinlot”)	Yantai, Shandong, China	Yantai, Shandong, China	Wholesale and retail	RMB400,000,000	65	35	Acquired through establishment or investment
Xinjiang Chateau Changyu Baron Balboa Co., Ltd. (“Chateau Shihezi”)	Shihezi, Xinjiang, China	Shihezi, Xinjiang, China	Manufacturing	RMB550,000,000	100	-	Acquired through establishment or investment
Ningxia Chateau Changyu Moser XV Co., Ltd. (“Chateau Ningxia”)	Yinchuan, Ningxia, China	Yinchuan, Ningxia, China	Manufacturing	RMB2,000,000	100	-	Acquired through establishment or investment
Shaanxi Chateau Changyu Rena Co., Ltd. (“Chateau Changan”)	Xianyang, Shaanxi, China	Xianyang, Shaanxi, China	Manufacturing	RMB20,000,000	100	-	Acquired through establishment or investment
Yantai Changyu Wine Research & Development Centre Co., Ltd. (“R&D Centre”)	Yantai, Shandong, China	Yantai, Shandong, China	Manufacturing	RMB805,000,000	100	-	Acquired through establishment or investment
Xinjiang Changyu Sales Co., Ltd. (“Xinjiang Sales”)	Shihezi, Xinjiang, China	Shihezi, Xinjiang, China	Marketing and sales	RMB10,000,000	-	100	Acquired through establishment or investment
Ningxia Changyu Trading Co., Ltd. (“Ningxia Trading”)	Yinchuan, Ningxia, China	Yinchuan, Ningxia, China	Marketing and sales	RMB1,000,000	-	100	Acquired through establishment or investment
Shaanxi Changyu Rena Wine Sales Co., Ltd. (“Shanxi Sales”)	Xianyang, Shaanxi, China	Xianyang, Shaanxi, China	Marketing and sales	RMB3,000,000	-	100	Acquired through establishment or investment
Penglai Changyu Wine Sales Co., Ltd.(“Penglai Sales”)	Penglai, Shandong, China	Penglai, Shandong, China	Marketing and sales	RMB5,000,000	-	100	Acquired through establishment or investment

Name of the Subsidiary	Principal place of business	Registered place	Business nature	Registered capital	Shareholding ratio (%)		Acquisition method
					(or similar equity interest)
Laizhou Changyu Wine Sales Co., Ltd. (“Laizhou Sales”)	Laizhou, Shandong, China	Laizhou, Shandong, China	Marketing and sales	RMB1,000,000	-	100	Acquired through establishment or investment
Francs Champs Participations SAS (“Francs Champs”)	Cognac, France	Cognac, France	Investment and trading	EUR32,000,000	100	-	Acquired through establishment or investment
Yantai Roullet Fransac Wine Sales Co., Ltd. (“Yantai Roullet Fransac”)	Yantai, Shandong, China	Yantai, Shandong, China	Marketing and sales	RMB1,000,000	-	100	Acquired through establishment or investment
Yantai Changyu Wine Sales Co., Ltd. (“Wine Sales Company”)	Yantai, Shandong, China	Yantai, Shandong, China	Marketing and sales	RMB5,000,000	100	-	Acquired through establishment or investment
Shaanxi Chateau Changyu Rena Tourism Co., Ltd. (“Chateau Tourism”)	Xianxin, Shaanxi, China	Xianxin, Shaanxi, China	Tourism	RMB1,000,000	-	100	Acquired through establishment or investment
Longkou Changyu Wine Sales Co., Ltd. (“Longkou Sales”)	Yantai, Shandong, China	Yantai, Shandong, China	Marketing and sales	RMB1,000,000	-	100	Acquired through establishment or investment
Yantai Changyu Cultural Tourism Development Co., Ltd. (“Culture Development “)	Yantai, Shandong, China	Yantai, Shandong, China	Tourism	RMB10,000,000	100	-	Acquired through establishment or investment
Beijing Changyu AFIP Agriculture development Co., Ltd. (“Agriculture Development”)	Miyun, Beijing, China	Miyun, Beijing, China	Marketing and sales	RMB1,000,000	-	100	Acquired through establishment or investment
Beijing Chateau Changyu AFIP Global Co., Ltd. (“AFIP”) (b)	Beijing, China	Beijing, China	Manufacturing	RMB642,750,000	92	-	Acquired through establishment or investment
Yantai Changyu Wine Culture Museum Co., Ltd. (“Museum”)	Yantai, Shandong, China	Yantai, Shandong, China	Tourism	RMB500,000	-	100	Acquired through establishment or investment
Yantai Changyu Culture Tourism Production Sales Co., Ltd. (“Culture Sales”)	Yantai, Shandong, China	Yantai, Shandong, China	Tourism	RMB5,000,000	-	100	Acquired through establishment or investment
Yantai Changyu International Window of the Wine City Co., Ltd. (“Window of the Wine City”)	Yantai, Shandong, China	Yantai, Shandong, China	Tourism	RMB60,000,000	-	100	Acquired through establishment or investment
Yantai KOYA Brandy Chateau Co., Ltd. (“Chateau KOYA”)	Yantai, Shandong, China	Yantai, Shandong, China	Manufacturing	RMB10,000,000	100	-	Acquired through establishment or investment
Changyu (Shanghai) International Digital Marketing Center Limited (“Digital Marketing”)	Shanghai, China	Shanghai, China	Marketing and sales	RMB50,000,000	100	-	Acquired through establishment or investment
Shanghai Changyu Guoqu Digital Technology Co., Ltd. (“Shanghai Guoqu”)	Shanghai, China	Shanghai, China	Marketing and sales	RMB6,000,000	-	51	Acquired through establishment or investment
Tianjin Changyu Yixin Digital Technology Co., Ltd. (“Tianjin Yixin”)	Tianjin, China	Tianjin, China	Marketing and sales	RMB10,000,000	-	51	Acquired through establishment or investment
Shanghai Changyu Yixin Digital Technology Co., Ltd. (“Shanghai Yixin”)	Shanghai, China	Shanghai, China	Marketing and sales	RMB10,000,000	-	51	Acquired through establishment or investment

Name of the Subsidiary	Principal place of business	Registered place	Business nature	Registered capital	Shareholding ratio (%)		Acquisition method
					(or similar equity interest)
Yantai Creighton Catering Company Limited (“Creighton Catering”)	Yantai, Shandong, China	Yantai, Shandong, China	Services	RMB1,000,000	-	100	Acquired through establishment or investment
Weimeisi (Shanghai) Enterprise Development Co., Ltd (“Weimeisi Shanghai”)	Shanghai, China	Shanghai, China	Marketing and sales	RMB10,000,000	100	-	Acquired through establishment or investment
Ningxia Longyu Food Trading Co., Ltd. ("Ningxia Longyu")	Yinchuan, Ningxia, China	Yinchuan, Ningxia, China	Marketing and sales	RMB500,000	100	-	Acquired through establishment or investment
Beijing Changyu Trading Co., Ltd. ("Beijing Trading")	Miyun, Beijing, China	Miyun, Beijing, China	Marketing and sales	RMB500,000	100	-	Acquired through establishment or investment

Reasons for the inconsistency between the proportion of shareholdings in a subsidiary and the proportion of voting rights:

(a) Chateau Changyu is a Sino-foreign joint venture established by the Company and a foreign investor, accounting for 70% of Changyu

Chateau’s equity interest. Through agreement arrangement, the Company has the full power to control Changyu Chateau’s strategicoperating, investing and financing policies. The agreement arrangement is terminated on 31 December 2027.

(b) AFIP is a limited liability company established by Yantai De'an Investment Co., Ltd and Beijing Qinglang Ecological Agricultural

Technology Development Co., Ltd. After the equity change, the Company holds 91.53% of its equity. Through agreement arrangement,the Company has the full power to control AFIP’s strategic operating, investing and financing policies. The agreement arrangement willbe terminated on 2 September 2027.

(2) Material non-wholly owned subsidiaries

Name of the Subsidiary	Proportion of ownership interest held by non-controlling interests	Comprehensive income attributable to non-controlling interests for the year	Dividend declared to non-controlling shareholders during the year	Balance of non-controlling interests at the end of the year
AFIP	8.47%	-	-	56,409,393
IWCC	15.00%	364,279	1,039,338	56,686,379

(3) Key financial information about material non-wholly owned subsidiaries

The following table sets out the key financial information of the above subsidiaries withoutoffsetting internal transactions, but with adjustments made for the fair value adjustment at theacquisition date and any differences in accounting policies:

	AFIP		Chile Indomita Wine Group
	2024	2023	2024	2023
Current assets	256,982,569	268,602,777	237,880,401	252,718,459
Non-current assets	373,266,371	384,948,572	306,022,908	314,112,626
Total assets	630,248,940	653,551,349	543,903,309	566,831,085
Current liabilities	16,704,310	26,013,757	150,938,775	167,265,413
Non-current liabilities	3,708,917	3,603,886	7,497,696	9,598,445
Total liabilities	20,413,227	29,617,643	158,436,471	176,863,858
Operating income	81,045,348	198,426,991	222,156,497	232,778,304
Net profit/(loss)	(8,859,147)	2,636,577	11,847,093	11,018,541
Total comprehensive income	(8,859,147)	2,636,577	2,428,528	8,322,765
Cash flows from operating activities	12,596,851	10,320,219	19,487,568	22,541,317

2 Transactions that cause changes in the Group’s interests in subsidiaries that do not result in

loss of control

(1) Changes in the Group’s interests in subsidiaries:

Fiscal year	Name of Subsidiary	Percentage of minority shareholdings acquired	Purchase date
2024	Kilikanoon Estate PtyLtd.	1.5%	12/01/2024

(2) Impact of transactions on non-controlling interests and equity attributable to the shareholders

of the Company:

	KilikanoonEstatePtyLtd.
Acquisition cost consideration
- Cash	1,883,538
Less: Share of net assets in subsidiaries based on the shares acquired	1,102,655
Difference	(780,883)??
Including: Adjustment to capital reserve	(780,883)?

IX. Risk related to financial instruments

The Group has exposure to the following main risks from its use of financial instruments inthe normal course 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 aboverisks and their sources, their changes during the year, and the Group’s objectives, policiesand processes for measuring and managing risks, and their changes during the year.

The Group aims to seek appropriate balance between the risks and benefits from its use offinancial instruments and to mitigate the adverse effects that the risks of financial instrumentshave on the Group’s financial performance. Based on such objectives, the Group’s riskmanagement policies are established to identify and analyse the risks faced by the Group, toset appropriate risk limits and controls, and to monitor risks and adherence to limits. Riskmanagement policies and systems are reviewed regularly to reflect changes in marketconditions and the Group’s activities.

1 Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation. The Group’s credit risk is primarilyattributable to cash at bank, receivables, debt investments and derivative financialinstruments entered into for hedging purposes. Exposure to these credit risks are monitoredby management on an ongoing basis.

The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does notexpect that these financial institutions may default and cause losses to the Group.

The Group's maximum credit risk exposure is the carrying amount of each financial asset(including derivative financial instruments) in the balance sheet.

In order to minimise the credit risk, the Group has adopted a policy to ensure that all salescustomers have good credit records. According to the policy of the Group, credit review isrequired for clients who require credit transactions. In addition, the Group continuouslymonitors the balance of account receivable to ensure there’s no exposure to significant baddebt risks. For transactions that are not denominated in the functional currency of therelevant operating unit, the Group does not offer credit terms without the specific approval ofthe Department of Credit Control in the Group. In addition, the Group reviews therecoverable amount of each individual trade debt at each balance sheet date to ensure thatadequate 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 norequirement for collateral. Concentrations of credit risk are managed bycustomer/counterparty, by geographical region and by industry sector. As at 31 December2024, 42.1% of the Group trade receivables are due from top five customers (31 December2023: 49.0%). There is no collateral or other credit enhancement on the balance of the tradereceivables of the Group.

2 Liquidity risk

Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations thatare settled by delivering cash or another financial asset. The Company and its individualsubsidiaries are responsible for their own cash management, including short-term investmentof cash surpluses and the raising of loans to cover expected cash demands (subject toapproval by the Company’s board when the borrowings exceed certain predeterminedlevels). The Group’s policy is to regularly monitor its liquidity requirements and itscompliance with lending covenants, to ensure that it maintains sufficient reserves of cash,readily realisable marketable securities and adequate committed lines of funding from majorfinancial institutions to meet its liquidity requirements in the short and longer term.

The following tables set out the remaining contractual maturities at the balance sheet date ofthe Group’s financial liabilities, which are based on contractual undiscounted cash flows(including interest payments computed using contractual rates or, if floating, based on ratescurrent at the balance sheet date) and the earliest date the Group can be required to pay:

Item	2024 Contractual undiscounted cash flow					Carrying amount at balance sheet date
	Within 1 year or on demand	1 to 2 years	More than 2 years but less than 5 years	More than 5 years	Total
Short-term loans	219,471,784	-	-	-	219,471,784	216,140,346
Accounts payable	417,510,439	-	-	-	417,510,439	417,510,439
Other payables	398,149,521	-	-	-	398,149,521	398,149,521
Long-term loans (including the portion due within one year)	34,442,156	21,327,296	66,175,216	-	121,944,668	111,798,781
Lease liability (including the portion due within one year)	20,108,712	10,585,667	11,049,349	15,155,422	56,899,150	46,331,020
Total	1,089,682,612	31,912,963	77,224,565	15,155,422	1,213,975,562	1,189,930,107

Item	2023 Contractual undiscounted cash flow					Carrying amount at balance sheet date
	Within 1 year or on demand	1 to 2 years	More than 2 years but less than 5 years	More than 5 years	Total
Short-term loans	378,707,190	-	-	-	378,707,190	364,981,445
Accounts payable	473,352,525	-	-	-	473,352,525	473,352,525
Other payables	555,634,336	-	-	-	555,634,336	555,634,336
Long-term loans (including the portion due within one year)	62,702,857	9,455,183	61,890,894	-	134,048,934	125,127,311
Lease liability (including the portion due within one year)	24,050,888	23,215,484	21,007,143	62,047,723	130,321,238	105,051,460
Total	1,494,447,796	32,670,667	82,898,037	62,047,723	1,672,064,223	1,624,147,077

3 Interest rate risk

Interest-bearing financial instruments at variable rates and at fixed rates expose the Group tocash flow interest rate risk and fair value interest risk, respectively. The Group determinesthe appropriate weightings of the fixed and floating rate interest-bearing instruments basedon the current market conditions and performs regular reviews and monitoring to achieve anappropriate mix of fixed and floating rate exposure.

(1) As at 31 December, the Group held the following interest-bearing financial instruments:

Fixed rate instruments:

Item	2024		2023
	Effective interest rate	Amounts	Effective interest rate	Amounts
Financial assets
- Cash at bank	1.70% - 2.25%	78,650,000	1.45% - 2.25%	579,200,000
Financial liabilities	?	?	?	?
- Short-term loans	5.53% - 5.94%	(97,958,247)	6.83% - 7.30%	(96,562,141)
- Long-term loans (including the portion due within one year)	2.80% - 4.65%	(6,342,368)	1.50% - 3.28%	(5,860,499)
- Lease liability (including the portion due within one year)	4.65%	(46,331,020)	4.65%	(105,051,460)
Total	?	(71,981,635)	?	371,725,900

Variable rate instruments:

Item	2024		2023
	Effective interest rate	Amounts	Effective interest rate	Amounts
Financial assets
- Cash at bank	0.20% - 0.35%	1,718,853,538	0.20% - 1.61%	1,638,418,696
Financial liabilities	?	?
- Short-term loans	1Year LPR - 0.95%	(50,000,000)	1 year LPR 0.95%	(100,000,000)
- Short-term loans	BBSW+1.5%	(26,365,950)	1.81% - 2.54%	(23,272,320)
- Short-term loans	3.41% - 4.65%	(41,816,149)	3.90% - 6.95%	(145,146,984)
- Long-term loans (including the portion due within one year)	3.41% - 7.59%	(105,456,413)	2.00% - 7.59%	(119,266,812)
Total	?	1,495,215,026	?	1,250,732,580

(2) Sensitivity analysis

Management of the Group believes interest rate risk on bank deposit is not significant,therefore does not disclose sensitivity analysis for interest rate risk.

As at 31 December 2024, based on assumptions above, it is estimated that a generalincrease of 50 basis points in interest rates, with all other variables held constant, woulddecrease the Group’s equity by RMB 838,644 (2023: RMB1,453,823), and net profit by RMB838,644 (2023: RMB1,453,823).

The sensitivity analysis above indicates the instantaneous change in the net profit and equitythat would arise assuming that the change in interest rates had occurred at the balancesheet date and had been applied to re-measure those financial instruments held by theGroup which expose the Group to fair value interest rate risk at the balance sheet date. Inrespect of the exposure to cash flow interest rate risk arising from floating rate non-derivativeinstruments held by the Group at the balance sheet date, the impact on the net profit andequity is estimated as an annualised impact on interest expense or income of such a changein interest rates.

4 Foreign currency risk

In respect of cash at bank and on hand, accounts receivable and payable, short-term loansdenominated in foreign currencies other than the functional currency, the Group ensures thatits net exposure is kept to an acceptable level by buying or selling foreign currencies at spotrates when necessary to address short-term imbalances.

(1) As at 31 December, the Group’s exposure to main currency risk arising from recognised

assets or liabilities denominated in foreign currencies is presented in the following tables.For presentation purposes, the amounts of the exposure are shown in Renminbi, translatedusing the spot rate at the balance sheet date. Differences resulting from the translation ofthe financial statements denominated in foreign currency are excluded.

	2024		2023
	Balance at foreign currency	Balance at RMB equivalent	Balance at foreign currency	Balance at RMB equivalent
Cash at bank and on hand
- USD	906,574	6,516,817	308,229	2,184,232
- EUR	62,611	471,195	67	523
- HKD	2	1	217	196
Short-term loans	?	?	?	?
- USD	13,375,000	97,958,247	13,625,000	96,562,141

(2) The following are the exchange rates for Renminbi against foreign currencies applied by the

Group:

	Average rate		Balance sheet date mid-spot rate
	2024	2023	2024	2023
USD	7.1217	7.0558	7.1884	7.0871
EUR	7.7248	7.6689	7.5257	7.8592
HKD	0.9127	0.9011	0.9260	0.9062

(3) Sensitivity analysis

Assuming all other risk variables remained constant, a 5% strengthening of the Renminbiagainst the US dollar, Euro dollar and HK dollar at 31 December would have impact on theGroup’s equity and net profit by the amount shown below. whose effect is in Renminbi andtranslated using the spot rate at the year-end date:

	Equity	Net profit
31 December 2024
USD	3,433,649	3,433,649
EUR	(17,200)	(17,200)
HKD	-	-
Total	3,416,449	3,416,449
31 December 2023
USD	3,539,172	3,539,172
EUR	(20)	(20)
HKD	(7)	(7)
Total	3,539,145	3,539,145

A 5% weakening of the Renminbi against the US dollar, Euro dollar and HK dollar at 31December would have had the equal but opposite effect to the amounts shown above, on thebasis that all other variables remained constant.

X. Fair value disclosure

All financial assets and financial liabilities held by the Group are carried at amounts notmaterially different from their fair value at 31 December 2024 and 31 December 2023.

XI. Related parties and related party transactions

1 Information about the parent of the Company

Company name	Registered place	Business nature	Registered capital	Shareholding percentage (%)	Percentage of voting rights (%)	Ultimate controlling party of the Company
Changyu Group	Yantai	Manufacturing	50,000,000	51.4%	51.4%	Jointly controlled by Yantai GuoFeng Investment Holding Ltd, ILLVA SARONNO HOLDING SPA, International Finance Corporation and Yantai Yuhua Investment and Development Company Limited.

The registered capital of the parent company did not change in 2024, while the parent company’s shareholding percentage and proportion ofvoting rights changed from 49.9% to 51.4%.

2 Information about the subsidiaries of the Company

For information about the subsidiaries of the Company, refer to Note VIII.1.

3 Information on other related parties

Name of other related parties	Related party relationship
Yantai Shenma Packaging Co., Ltd. (“Shenma Packaging”)	Controlled by the same parent company
Yantai Zhongya Zhibao Pharmaceutical Co., Ltd. (“Zhongya Zhibao”)	Information on the Group’s directors, supervisors and the senior management
Shanghai Yufeng Brand Management Co., Ltd.("Shanghai Yufeng”)	Associate of the Group
Taizhou Changyu Winery Wine Sales Co., Ltd.("Taizhou Changyu”)	Associate of the Group
Yantai Guolong Wine Industry Co., Ltd (“Yantai Guolong”)	Associate of the Group
Societe Civile Argricole Du Chateau De Mirefleurs (“Mirefleurs”)	Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”)	Subsidiaries of the joint venture
Yantai Changyu Wine Culture Museum ("Museum")	Non profit organizations associated with the company

4 Transactions with related parties

(1) Product procurement

Related parties	Nature of transaction	2024	2023
Shenma Packaging	Product procurement	67,118,462	83,991,232
Zhongya Zhibao	Product procurement	63,910	152,932
Mirefleurs	Product procurement	5,940,476	7,844,108
LIVERSAN	Product procurement	2,997,312	2,602,967
Total		76,120,160	94,591,239

(2) Sales of goods

Related parties	Nature of transaction	2024	2023
Zhongya Zhibao	Sales of goods	4,977,296	4,306,827
Shanghai Yufeng	Sales of goods	1,747,006	5,691,239
Shenma Packaging	Sales of goods	119,317	121,548
Yantai Guolong	Sales of goods	13,221,519	9,152,265
Taizhou Changyu	Sales of goods	4,329,478	-
Total		24,394,616	19,271,879

(3) Purchase of fixed assets

Related parties of the Company	Nature of transaction	2024	2023
Shenma Packaging	Purchase of fixed assets	219,821	1,592,698
Total		219,821	1,592,698

(4) Leases

(a) As the lessor

Name of lessee	Type of assets leased	Lease income recognised in 2024	Lease income recognised in 2023
Shenma Packaging	Offices and plants	1,549,410	1,549,410
Zhongya Zhibao	Offices and plants	963,810	963,810
Museum	Offices	382,110	-
Total		2,895,330	2,513,220

(b) As the lessee

Name of lessor	Type of assets leased	Lease expense recognised in 2024	Lease expense recognised in 2023
Changyu Group	Office buildings	1,548,899	1,612,118
Changyu Group	Offices and plants	1,396,340	1,394,762
Changyu Group	Offices and plants	4,189,020	4,184,286
Changyu Group	Offices and commercial building	6,484,558	7,057,143
Total		13,618,817	14,248,309

(5) Remuneration of key management personnel

Item	2024	2023
Remuneration of key management personnel	10,298,399	12,846,007

(6) Other related party transactions

Related parties	Nature of transaction	2024	2023
Changyu Group	Trademarks	17,770,743	27,515,798

Pursuant to a royalty agreement dated 18 May 1997, starting from 18 September 1997, theGroup may use certain trademarks of Changyu Group, which have been registered with thePRC Trademark Office. An annual royalty fee at 2% of the Group’s annual sales is payableto Changyu Group. The license is effective until the expiry of the registration of thetrademarks.

On 18 May 2019, the general meeting of shareholders approved the proposal of theamendment to the royalty agreement. Article 6.1 of the royalty agreement with ChangyuGroup was amended to: During the validity period of this contract, the Group pays ChangyuGroup royalty on an annual basis. The royalty is calculated based on 0.98% of the salesvolume of the Group ‘s contract products using this trademark. The article 6.3 is amendedto: The royalty paid to the Changyu Group by the Group shall not be used to promote thistrademark and the contract products.

The Group incurred a trademark usage fee of RMB17,770,743 this year.

5 Receivables from and payables to related parties

Receivables from related parties

Item	Related party	2024		2023
		Book value	Provision for bad and doubtful debts	Book value	Provision for bad and doubtful debts
Accounts receivable	Zhongya Zhibao	1,041,839	1,126	1,476,262	2,670
Accounts receivable	Museum	416,500	450	-	-
Accounts receivable	Shanghai Yufeng	-?	-?	2,925,045	5,290
Prepayments	Mirefleurs	5,346,651	-?	6,642,165	-
Prepayments	Shenma Packaging	112,579	-?	-	-

Payables to related parties

Item	Related party	2024	2023
Accounts payable	Shenma Packaging	20,649,261	27,358,723
Accounts payable	Zhongya Zhibao	1,133,362	2,066
Accounts payable	Shanghai Yufeng	7,318	-
Contract liabilities	Taizhou Changyu	5,927,230	-
Contract liabilities	Yantai Guolong	51,696	14,840,000
Contract liabilities	Shenma Packaging	11,835	-
Other payables	Changyu Group	18,630,742	27,515,798
Other payables	Shenma Packaging	400,000	400,000
Other payables	Yantai Guolong	50,000	-

XII. Capital management

The Group’s primary objectives when managing capital are to safeguard its ability to continueas a going concern, so that it can continue to provide returns for shareholders, by pricingproducts and services commensurately with the level of risk and by securing access tofinance at a reasonable cost.

The Group’s capital structure is regularly reviewed and managed to achieve an optimalstructure and return for shareholders. Factors for the Group’s consideration include: itsfuture funding requirements, capital efficiency, actual and expected profitability, expectedcash flows, and expected capital expenditure. Adjustments are made to the capital structurein light of changes in economic conditions affecting the Group.

Neither the Company nor any of its subsidiaries are subject to externally imposed capitalrequirements.

XIII. Share-based payments

1 Equity instruments

(1) Share options or other equity instruments outstanding at the end of the year

Type of grantees	Granted during the year		Exercised during the year		Unlocked during the year		Forfeited during the year
	Quantity	Amount	Quantity	Amount	Quantity	Amount	Quantity	Amount
Some directors, the senior management, the middle management and core technical (operational) cadre	-	-	-	-	1,720,495	26,220,343	425,666	6,487,150

(2) Equity-settled share-based payments

Pursuant to the Proposal on the Company’s 2023 Restricted Share Incentive Plan (Draft) andRelevant Summary and the Proposal on the Request for the Authorisation to the Board ofDirectors by the General Meetings of Shareholders to Handle Matters related to theCompany’s 2023 Restricted Share Incentive Plan passed by resolutions in the Group’s 2022General Meetings of Shareholders held on 26 May 2023 as well as the Proposal on theAdjustments to Matters related to 2023 Restricted Share Incentive Plan and the Proposal onthe Granting of Restricted Shares to Incentive Objects under the 2023 Restricted ShareIncentive Plan reviewed and passed in the 2023 first extraordinary Board meeting held on 26June 2023, the Group determined to grant 6,850,000 restricted shares to 204 incentiveobjects at a grant price of RMB15.24 per share on 26 June 2023 (the grant date). A total of203 incentive objects of the Group actually subscribed for 6,785,559 restricted shares at agrant price of RMB15.24 per share. The transaction increased the Company’s registeredcapital by RMB6,785,559, increased the capital reserve by RMB96,626,360.

All restricted shares granted to incentive objects are subject to different restricted salesperiods, which are respectively 12 months, 24 months and 36 months from the date ofcompletion of the grant registration of the restricted shares granted to the incentive objects.The restricted shares granted to the incentive objects under the Restricted Share IncentivePlan shall not be transferred, pledged as collateral or to repay debts during the restrictedsales periods. All restricted shares granted to incentive objects will be unlocked in threephases after 12 months from the grant date, with the proportion of unlocking in each phasebeing 30%, 30% and 40%, respectively, corresponding to unlocking dates of one year, twoyears and three years from the grant date. The actual unlocked shares shall be linked to theperformance appraisal for each year.

When the Company’s performance meets the corresponding criteria, the unlockingproportion of the above-mentioned restricted shares is determined based on the businessperformance of the incentive object’s operation and the contribution value of the incentiveobject. The Company will repurchase the locked restricted shares at the granted price of theincentive objects if the unlocked criteria stipulated in this plan are not met, and the incentiveobject shall not unlock the restricted shares for the current period.

The Group convened the Second Meeting of the Remuneration Committee of the Board ofDirectors for 2024, the Fourth Extraordinary Board Meeting for 2024 and the SecondExtraordinary Supervisory Committee Meeting for 2024 on 22 July 2024, at which theProposal on Satisfaction of the Release of Lock-up Shares Granted under the Company’s2023 Restricted Share Incentive Plan in the First Unlocking Period and the Proposal on theRepurchase and Cancellation of Certain Restricted Shares Granted under the Company’s2023 Restricted Share Incentive Plan and Adjustment of Repurchase Price were reviewedand approved. The Proposal on the Repurchase and Cancellation of Certain RestrictedShares Granted under the Company’s 2023 Restricted Share Incentive Plan and Adjustmentof Repurchase Price was reviewed and approved according to the resolution of the ThirdExtraordinary General Meeting on 8 August 2024. 172 incentive participants held the firsttranche of restricted shares eligible for unlocking in 2024, and the total number of restrictedshares unlocked was 1,720,495. These unlocked shares were listed and traded on 6 August2024. The transaction resulted in a decrease of RMB26,220,343 in treasury shares. Someincentive participants no longer met the conditions of the Company’s 2023 Restricted ShareIncentive Plan as they have left the Company due to individual reasons or got job transfer,and 157,790 restricted shares that have been granted to them but not yet unlocked wererepurchased and cancelled. 267,876 restricted shares that cannot be unlocked during thefirst unlocking period due to personal performance appraisal results were repurchased andcancelled. The number of restricted shares that have been repurchased and cancelled were425,666 in total. The transaction resulted in a decrease of RMB425,666 in the Group’s sharecapital, a decrease of RMB6,061,484 in capital reserve, and a decrease of RMB 6,487,150 intreasury shares.

As at 31 December 2024, the total costs of equity-settled share-based payments in theconsolidate financial statements for the year were RMB4,016,468, and the accumulatedamount of equity-settled share-based payments recognised in the capital reserve for the yearamounted to RMB26,719,287.

XIV. Commitments and contingencies

1 Significant commitment

(1) Capital commitments

Item	2024	2023
Long-term assets acquisition commitment	41,228,000?	50,057,140
Total	41,228,000?	50,057,140

(2) Operating lease commitments

As at 31 December, the total future minimum lease payments under non-cancellableoperating leases of the Group’s properties were payable as follows:

Item	2024	2023
Within 1 year (inclusive)	-?	50,000
Total	-?	50,000

2 Contingencies

The Group do not have any significant contingencies as at balance sheet date.

XV. Subsequent events

1 Distribution of dividends on ordinary shares approved after the balance sheet date

According to the proposal of the Board of Directors on 16 April 2025, the Company intendsto distribute cash dividend totaling RMB268,729,560 to all shareholders of 671,823,900capital shares for the year ended 31 December 2024 on the basis of RMB 4 (including tax)for every 10 shares. The proposal is subject to the approval by the Shareholders’ meeting.This distribution of profit in cash has not been recognised as a liability at the balance sheetdate.

XVI. Other significant items

1 Segment reporting

The Group is principally engaged in the production and sales of wine, brandy, and sparklingwine in China, France, Spain, Chile and Australia. In accordance with the Group’s internalorganisation structure, management requirements and internal reporting system, the Group’soperation is divided into five parts: China, Spain, France, Chile and Australia. Themanagement periodically evaluates segment results, in order to allocate resources andevaluate performances. In 2024, over 82% of revenue, more than 93% of profit and over91% of non-current assets derived from China/are located in China. Therefore, the Groupdoes not need to disclose additional segment report information.

XVII. Notes to the Company’s financial statements

1 Receivables under financing

Item	Note	2024	2023
Bills receivable	(1)	13,110,297	36,322,019
Total		13,110,297	36,322,019

(1) The pledged bills receivable of the Company at the end of the year

As at 31 December 2024, there was no pledged bills receivable (31 December 2023: Nil).

(2) Outstanding derecognised endorsed bills that have not matured at the end of the year

Item	Amount recognised at year end
Bank acceptance bills	60,323,326
Total	60,323,326

As at 31 December 2024, derecognised bills endorsed by the Company to other partieswhich are not yet due at the end of the period is RMB 60,323,326 (31 December 2023: RMB53,825,102). The notes are used for payment to suppliers. The Company believes that dueto good reputation of bank, the risk of notes not accepting by bank on maturity is very low,therefore derecognise the note receivables endorsed. If the bank is unable to pay the noteson maturity, according to the relevant laws and regulations of China, the Company wouldundertake limited liability for the notes.

2 Other receivables

	Note	31 December 2024	31 December 2023
Dividends receivable	(1)	130,000,000	-
Others	(2)	822,762,563	576,949,997
Total		952,762,563	576,949,997

(1) Dividends receivable

Item	31 December 2024	31 December 2023
Dividends to subsidiaries	130,000,000	-
Total	130,000,000?	-

(2) Others

(a) Others by customer type:

Customer type	31 December 2024	31 December 2023
Amounts due from subsidiaries	615,371,507	574,127,885
Amounts due from related parties	207,391,056	2,822,112
Sub-total	822,762,563	576,949,997
Less: Provision for bad and doubtful debts	-?	-
Total	822,762,563	576,949,997

(b) The ageing analysis is as follows:

Ageing	2024	2023
Within 1 year (inclusive)	822,658,091	576,845,525
Over 1 year but within 2 years (inclusive)	-?	-
Over 2 years but within 3 years (inclusive)	-?	-
Over 3 years	104,472	104,472
Sub-total	822,762,563	576,949,997
Less: Provision for bad and doubtful debts	-	-
Total	822,762,563	576,949,997

The ageing is counted starting from the date.

(c) Movements of provisions for bad and doubtful debts

As at 31 December 2024, no bad and doubtful debt provision was made for otherreceivables (31 December 2023: Nil).

As at 31 December 2024, the Company has no other receivables written off (31December 2023: Nil).

(d) Others categorised by nature

Nature of other receivables	2024	2023
Amounts due from subsidiaries	615,371,507	574,127,885
Compensation receivable for the disposal of a vineyard (Note V.6)	200,666,088	-
Others	6,724,968	2,822,112
Sub-total	822,762,563	576,949,997
Less: Provision for bad and doubtful debts	-?	-
Total	822,762,563	576,949,997

(e) Five largest others-by debtor at the end of the year

Debtor	Nature of the receivable	Balance at the end of the year	Ageing	Percentage of ending balance of others (%)	Ending balance of provision for bad and doubtful debts
Company I	Compensation receivable for the disposal of a vineyard	200,666,088	Within 1 year	24.4%	-
Dicot	Amounts due from subsidiaries	138,187,227	Within 1 year	16.8%	-
Sales Company	Amounts due from subsidiaries	135,160,033	Within 1 year	16.4%	-
Kilikanoon Australia	Amounts due from subsidiaries	56,668,527	Within 1 year and 1-2 years	6.9%	-
Pioneer International	Amounts due from subsidiaries	12,290,287	Within 1 year	1.5%	-
Total		542,972,162		66.0%	-

3 Long-term equity investments

(1) Long-term equity investments by category:

Item	2024			2023
	Book value	Provision for impairment	Carrying amount	Book value	Provision for impairment	Carrying amount
Investments in subsidiaries	7,737,521,508	(48,288,589)	7,689,232,919	7,690,772,693	(42,274,055)	7,648,498,638
Total	7,737,521,508	(48,288,589)	7,689,232,919	7,690,772,693	(42,274,055)	7,648,498,638

(2) Investments in subsidiaries:

Subsidiary	Balance at the beginning of the year	Additions during the year- Purchase of equity	Additions/ (Decrease) during the year - Equity Incentives	Decrease during the year	Balance at the end of the year	Balance of provision for impairment at the end of the year
Kylin Packaging	23,543,435	-	10,496	-	23,553,931	-
Chateau Changyu	29,273,059	-	8,713	-	29,281,772	-
Pioneer International	5,934,696	-	(1,469,982)	-	4,464,714	-
Ningxia Growing	36,573,247	-	-	-	36,573,247	-
National Wines	2,000,000	-	-	-	2,000,000	-
Golden Icewine Valley	63,431,494	22,200,000	6,978	-	85,638,472	-
Chateau Beijing	588,633,661	-	14,554	-	588,648,215	-
Sales Company	21,259,694	-	(2,307,582)	-	18,952,112	-
Wine Sales	5,333,190	-	(224,024)	-	5,109,166	-
Shanghai Marketing	1,000,000	-	-	-	1,000,000	-
Beijing Sales	850,000	-	-	-	850,000	-
Jingyang Wine	900,000	-	-	-	900,000	-
Ningxia Wine	222,309,388	-	-	-	222,309,388	-
Chateau Ningxia	453,747,514	-	12,770	-	453,760,284	-
Chateau Tinlot	212,039,586	-	-	-	212,039,586	-
Chateau Shihezi	812,303,784	-	8,115	-	812,311,899	-
Chateau Changan	804,197,217	-	8,713	-	804,205,930	-
R&D Centre	3,290,230,714	-	37,836	-	3,290,268,550	-
Huanren Wine	22,200,000	-	-	(22,200,000)	-	-
Wine Sales Company	5,102,210	-	2,920	-	5,105,130	-
Francs Champs	236,025,404	-	-	-	236,025,404	-
Dicot	233,142,269	-	-	-	233,142,269	11,225,459
Chile Indomita Wine Group	274,248,114	-	-	-	274,248,114	-
Australia Kilikanoon Estate	129,275,639	1,883,538	-	-	131,159,177	37,063,130
Digital Marketing	1,186,121	49,000,000	5,318	-	50,191,439	-
Chateau Koya	110,328,128	-	9,375	-	110,337,503	-
Shanghai Weimeisi	7,910,985	-	-	-	7,910,985	-
Culture Development	92,621,574	-	27,986	-	92,649,560	-
Development Zone Trading	861,192	-	(23,587)	-	837,605	-
Penglai sales	1,104,339	-	(272,727)	-	831,612	-
Longkou sales	1,611,286	-	-	-	1,611,286	-
Laizhou sales	84,916	-	2,426	-	87,342	-
Yantai Roullet Fransac	244,217	-	6,979	-	251,196	-
Museum	265,162	-	-	-	265,162	-
Window of the Wine City	470,134	-	-	-	470,134	-
AFIP Tourism	162,952	-	-	-	162,952	-
Meeting Center	102,210	-	-	-	102,210	-
Ningxia Trading	162,952	-	-	-	162,952	-
Creighton Catering	102,210	-	-	-	102,210	-
Total	7,690,772,693	73,083,538	(4,134,723)	(22,200,000)	7,737,521,508	48,288,589

For information about the subsidiaries of the Company, refer to Note VIII.

4 Operating income and operating costs

Item	2024		2023
	Income	Cost	Income	Cost
Principal activities	557,517,562	494,323,439	723,412,525	615,998,040
Other operating activities	4,561,209	2,555,898	7,746,429	5,638,524
Total	562,078,771	496,879,337	731,158,954	621,636,564
Including: Revenue from contracts with customers	557,517,562	494,323,439	723,412,525	615,998,040
Rent income	4,561,209	2,555,898	7,746,429	5,638,524

Disaggregation of revenue from contracts with customers:

Type of contract	2024	2023
By type of goods or services
- Liquor	557,517,562	723,412,525
By timing of transferring goods or services	?	?
- Revenue recognised at a point in time	557,517,562	723,412,525

5 Investment income

Item	2024	2023
Income from long-term equity investments accounted for using cost method	368,167,007	476,632,356
Income from long-term equity investments accounted for using equity method	-	54,935
Loss from disposal of subsidiaries and long-term equity investment	-	(37,436,762)
Total	368,167,007	439,250,529

6 Transactions with related parties

(1) Product procurement

Related parties	Nature of transaction	2024	2023
Subsidiary of the parent company	Product procurement	214,788,248	292,073,183
Other related parties of the Company	Product procurement	36,256,009	43,934,847
Total		251,044,257	336,008,030

(2) Sales of goods

Related parties	Nature of transaction	2024	2023
Subsidiary of the parent company	Sales of goods	590,568,772	787,731,546
Other related parties of the Company	Sales of goods	3,626,159	3,184,145
Total		594,194,931	790,915,691

(3) Guarantee

The Company as the guarantor

Guarantee holder	Currency	Amount of guarantee	Inception date of guarantee	Maturity date of guarantee	Guarantee expired (Y/N)
Australia Kilikanoon Estate	AUD	5,850,000	1 September 2023	2 March 2026	N

(4) Leases

(a) As the lessor

Name of lessee	Type of assets leased	Lease income recognised in 2024	Lease income recognised in 2023
Other related parties of the Company	Offices and plants	2,513,220	2,513,220
Subsidiary of the parent company	Offices buildings	85,714	85,714
Total		2,598,934	2,598,934

(b) As the lessee

Name of lessor	Type of assets leased	Lease expense recognised in 2024	Lease expense recognised in 2023
Other related parties of the Company	Office buildings	1,396,340	1,394,762
Total	Office buildings	1,396,340	1,394,762

7 Receivables from and payables to related parties

Receivables from related parties

Item	Related party	2024		2023
		Book value	Provision for bad and doubtful debts	Book value	Provision for bad and doubtful debts
Accounts receivables	Other related parties of the Company	227,042	245	727,123	1,298
Prepayments	Other related parties of the Company	5,344,237	-?	4,472,159	-
Other receivables	Subsidiary of the parent company	745,371,507	-?	574,127,885	-
Other non-current assets	Subsidiary of the parent company	1,864,430,000	-?	1,934,430,000	-

Payables to related parties

Item	Related party	2024	2023
Accounts payable	Other related parties of the Company	5,528,108	13,895,970
Other payables	Subsidiary of the parent company	441,845,995	441,681,129
Other payables	Other related parties of the Company	400,000	400,000

XVIII. Extraordinary gains and losses in 2024

Item		Amount
(1)	Profit and loss from disposal of non-current assets	132,116,926
(2)	Government grants recognised through profit or loss (except for those which are closely related to the company’s normal operations, which the company is entitled to under established standards in accordance with government policies and which have a continuing impact on the profits and losses of the company)	? 52,613,910
(3)	Other non-operating income and expenses besides items above	1,244,856
	Sub-total	185,975,692
(4)	Tax effect	(6,873,074)
(5)	Effect on non-controlling interests after taxation	(4,956,976)?
	Total	174,145,642?

Note: Extraordinary gain and loss items (1) to (3) listed above are presented in the amount

before taxation.

XIX. Return on net assets and earnings per share

1 Calculation of earnings per share

(1) Basic earnings per share

For calculation of the basic earnings per share, please refer to Note V.49.

(2) Basic earnings per share excluding extraordinary gain and loss

Basic earnings per share excluding extraordinary gain and loss is calculated as dividingconsolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average number of ordinary sharesoutstanding:

	2024	2023
Consolidated net profit attributable to ordinary shareholders of the Company	305,210,999	532,438,907
Extraordinary gains and losses attributable to ordinary shareholders of the Company	174,145,642	68,365,214
Consolidated net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	131,065,357	464,073,693
Weighted average number of ordinary shares outstanding	684,370,832	685,464,000
Basic earnings per share excluding extraordinary gain and loss (RMB/share)	0.19	0.68

(3) Diluted earnings per share

For calculation of the diluted earnings per share, please refer to Note V.49.

(4) Diluted earnings per share excluding extraordinary gains and losses

Diluted earnings per share excluding extraordinary gains and losses is calculated by dividingconsolidated net profit excluding extraordinary gains and losses attributable to ordinaryshareholders of the Company (diluted) by the weighted average number of ordinary sharesoutstanding (diluted):

	2024	2023
Consolidated net profit attributable to ordinary shareholders of the Company (diluted)	305,210,999	532,438,907
Extraordinary gains and losses attributable to ordinary shareholders of the Company	174,145,642	68,365,214
Consolidated net profit excluding extraordinary gains and losses attributable to the Company’s ordinary equity shareholders (diluted)	131,065,357	464,073,693
Weighted average number of ordinary shares outstanding (diluted)	684,370,832	685,670,893
Diluted earnings per share excluding extraordinary gains and losses (RMB/share)	0.19	0.68

2 Calculation of weighted average return on net assets

(1) Weighted average return on net assets

Weighted average return on net assets is calculated as dividing consolidated net profitattributable to ordinary shareholders of the Company by the weighted average amount ofconsolidated net assets:

	2024	2023
Consolidated net profit attributable to ordinary shareholders of the Company	305,210,999	532,438,907
Weighted average amount of consolidated net assets	10,773,554,817	10,684,054,057
Weighted average return on net assets	2.83%	4.98%

Calculation of weighted average amount of consolidated net assets is as follows:

	2024	2023
Consolidated net assets at the beginning of the year	10,841,500,988	10,579,053,733
Effect of consolidated net profit attributable to ordinary shareholders of the Company	140,140,353	270,707,233
Effects of Restricted Share Incentive Plan	9,251,615	15,367,878
Acquisition of non-controlling interests (Note VIII.2)	(715,809)	(1,140,487)
Effect of shares repurchased (Note V.32)	(14,840,361)	-
Effect of cash dividends (Note V.36)	(201,781,969)	(179,934,300)
Weighted average amount of consolidated net assets	10,773,554,817	10,684,054,057

(2) Weighted average return on net assets excluding extraordinary gain and loss

Weighted average return on net assets excluding extraordinary gain and loss is calculated asdividing consolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average amount of consolidated net assets:

	2024	2023
Consolidated net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	131,065,357	464,073,693
Weighted average amount of consolidated net assets	10,773,554,817	10,684,054,057
Weighted average return on net assets excluding extraordinary gain and loss	1.22%	4.34%