YantaiChangyuPioneerWineCo.,Ltd.
2025AnnualReport
Final2026-01
April18,2026
Contents
I、
ImportantNotice,ContentsandDefinition ...... 3II、BriefIntroductionfortheCompanyandMainFinancialIndicators ...... 6
III、ManagementDiscussionandAnalysis ...... 11
IV、CorporateGovernance,EnvironmentalandSocialResponsibility ...... 37
V、Majorissues ...... 64
VI、ChangesinSharesandShareholders’Situation ...... 73
VII、RelatedSituationofBonds ...... 83
VIII、FinancialReport ...... 83
I.ImportantNotice,ContentsandDefinition
Theboardofdirectors,directorsandseniorexecutivesoftheCompanyguaranteethetruthfulness,accuracyandcompletenessofthecontentscontainedinthereportwithnofalserecords,misleadingstatementsorsignificantomissions,andundertakeindividualandjointlegalliabilities.Mr.HongjiangZhou(PersoninchargeoftheCompany),Ms.CuimeiGuo(PersoninchargeofaccountingworkandPersoninchargeofaccountingorgan&Accountantincharge)assurethetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.Alldirectorsattendedthisboardmeetingforreviewingthisannualreportinperson.Forward-lookingstatementssuchasfutureplansanddevelopmentstrategiescoveredinthisreportdonotconstituteasubstantialcommitmentoftheCompanytoinvestors.Investorsareadvisedtopayattentiontoinvestmentrisks.Aboutsignificantrisksthatmaybefacedinproductionandoperationprocess,pleasereferto“(5)PotentialRisks”of“11.ExpectationfortheCompany’sFutureDevelopment”inthe“III.ManagementDiscussionandAnalysis”ofthisreport.Investorsareadvisedtoreadcarefullyandpayattentiontoinvestmentrisks.TheCompany’spreliminaryschemeofprofitdistributiondeliberatedandpassedbytheboardofdirectorsthistimeisshownasfollowing:BasedontheCompany’stotal657,240,128shares,theCompanyplanstopayCNY2.5(includingtax)incashasdividendsforevery10sharestoallshareholdersandsend0bonusshare(includingtax);capitalreservewillnotbetransferredtoequity.
ReferenceDocuments
(1)TheoriginalofAnnualReportautographedbytheChairman.
(2)TheFinancialStatementsautographedandsignedbytheChairman,ChiefAccountantandAccountantinCharge.
(3)TheProspectusandPublicOfferingAnnouncementforStockBissuedin1997;TheProspectusofIntentandTheShares’Change&AShare’sPublicOfferingAnnouncementforStockAissuedbythecapitalincreasein2000.
(4)TheoriginalsofalldocumentsandannouncementsthattheCompanymadepublicduringthereportperiodinthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommission.
Definition
DefinitionItem
| DefinitionItem | Refersto | DefinitionContent |
| Company/TheCompany | Refersto | YantaiChangyuPioneerWineCo.,Ltd. |
| ChangyuGroup/ControllingShareholder | Refersto | YantaiChangyuGroupCo.,Ltd. |
| CSRC | Refersto | ChinaSecuritiesRegulatoryCommission |
| SSE | Refersto | ShenzhenStockExchange |
| KPMGHuazhen | Refersto | KPMGHuazhenLLP(LimitedLiabilityPartnership) |
| CNY | Refersto | ChineseYuan |
II.BriefIntroductionfortheCompanyandMainFinancialIndicators
1.Company’sinformation
StockAbbreviation
| StockAbbreviation | ChangyuA,ChangyuB | StockCode | 000869,200869 |
| StockAbbreviationafterAlteration | — | ||
| PlaceofStockListing | ShenzhenStockExchange | ||
| LegalNameinChinese | 烟台张裕葡萄酿酒股份有限公司 | ||
| AbbreviationofChineseName | 张裕 | ||
| LegalNameinEnglish | YANTAICHANGYUPIONEERWINECOMPANYLIMITED | ||
| AbbreviationofEnglishName | CHANGYU | ||
| LegalRepresentative | HongjiangZHOU | ||
| RegisteredAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCodeofRegisteredAddress | 264000 | ||
| HistoricalChangeinRegisteredAddress | — | ||
| OfficeAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCodeofOfficeAddress | 264000 | ||
| Website | http://www.changyu.com.cn | ||
| webmaster@changyu.com.cn | |||
2.Contactpersonandinformation
| SecretarytotheBoardofDirectors | AuthorizedRepresentativeofSecuritiesAffairs | |
| Name | JianxunJIANG | TingguoLI |
| Address | 56DamaRoad,Yantai,Shandong,China | 56DamaRoad,Yantai,Shandong,China |
| Tel. | 0086-535-6602761 | 0086-535-6633656 |
| Fax. | 0086-535-6633639 | 0086-535-6633639 |
| jiangjianxun@changyu.com.cn | stock@changyu.com.cn |
3.Informationdisclosureandfilinglocation
| Stockexchangewebsitefordisclosingannualreport | ShenzhenStockExchange(http://www.szse.cn) |
| Medianameandwebsitefordisclosingannualreport | ChinaSecuritiesNewspaper,SecuritiesTimes,HongKongCommercialDailyandCNINFOwebsite(http://www.cninfo.com.cn) |
| FilinglocationoftheCompany’sannualreport | BoardofDirectors’OfficeoftheCompany,56DamaRoad,Yantai,Shandong |
4.Registrationchanges
UnifiedSocialCreditCode
| UnifiedSocialCreditCode | 913700002671000358 |
| ChangesforthemainbusinessesoftheCompanysinceitwaslisted(ifhave) | ThebusinessscopedeterminedbytheCompanywhenitwasestablishedonSeptember18,1997isproduction,processingandsalesofwine,distilledliquor,healthyliquor,fruitliquor,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachine.OnApril17,2008,approvedbythe2007AnnualShareholders’Meeting,theCompany’sbusinessscopewaschangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachines;licensedimportandexport.OnMay12,2010,approvedbythe2009AnnualShareholders’Meeting,theCompany’sbusinessscopewaschangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialanditsproductsandwinemakingmachinery;licensedimportandexport;externalinvestmentsubjecttonationalpolicy.OnSeptember23,2016,approvedbyThe1stInterimShareholders’Meetingin2016,theCompany’sbusinessscopewaschangedtoproductionofwineandfruitwine(bulkwine,processingandfilling);productionofblendingliquorandotherblendingliquors(grapeliqueur);productionofotherliquors(otherdistilledliquors);production,processingandsalesofpackingmaterialandwinemakingmachines;grapeplantationandprocurement;tourismresourcesdevelopment(excludingtourism);packagingdesign;activityofbuildingrental;licensedimportandexport;warehousebusiness;externalinvestmentsubjecttonationalpolicy. |
| Changesforallpreviouscontrollingshareholders | No |
5.OtherrelevantinformationTheaccountingfirmappointedbytheCompany
| Name | KPMGHuazhenLLP |
| Address | Level8,No.2EastWingofDongfangSquare,No.1EastChang’anStreet,Beijing |
| Nameofsignatoryaccountants | JiaWANG,ZhichaoLIU |
ThesponsorinstitutionappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Applicable?InapplicableThefinancialadviserappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Applicable?Inapplicable
6.KeyaccountingdataandfinancialindicatorsWhethertheCompanyneedstoretrospectivelyadjustorrestatetheaccountingdataofpreviousfiscalyears.
□Yes?No
Thelowerofthenetprofitsbeforenon-recurringgainsandlossesandafternon-recurringgainsandlossesinrecentthreefiscalyearsisnegativeandtheauditreportinrecentoneyearindicatesthereisuncertaintyintheCompany’ssustainableoperationability
□Yes?NoThelowerofthenetprofitsbeforenon-recurringgainsandlossesandafternon-recurringgainsandlossesisnegative
□Yes?No
2025
| 2025 | 2024 | Increase/decreasecomparedwithlastyear(%) | 2023 | |
| Operatingrevenue(CNY) | 2,988,667,522 | 3,277,278,347 | -8.81% | 4,384,764,335 |
| Netprofitattributedtoshareholdersofthelistedcompany(CNY) | 71,291,303 | 305,210,999 | -76.64% | 532,438,907 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses(CNY) | 39,128,174 | 131,065,357 | -70.15% | 464,073,693 |
| Netcashflowsfromoperatingactivities(CNY) | 355,823,459 | 397,741,067 | -10.54% | 1,173,091,743 |
| Basicearningspershare(CNY) | 0.11 | 0.45 | -75.56% | 0.78 |
| Dilutedearningspershare(CNY) | 0.11 | 0.45 | -75.56% | 0.78 |
| Weightedaverageforearningrateofnetassets | 0.68% | 2.83% | -2.15% | 4.98% |
| December31,2025 | December31,2024 | Increase/decreasecomparedwithlastyear-end(%) | December31,2023 | |
| Totalassets(CNY) | 12,050,601,981 | 12,520,474,218 | -3.75% | 13,336,267,204 |
| Netassetsattributedtoshareholdersofthelistedcompany(CNY) | 10,347,247,577 | 10,619,208,419 | -2.56% | 10,841,500,988 |
7.DifferencesinaccountingdataunderPRCaccountingstandardsandinternationalaccountingstandards
(1)DifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandards
□Applicable?InapplicableTherearenodifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
(2)DifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandards
□Applicable?InapplicableTherearenodifferencesfornetprofitandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
8.Keyfinancialindicatorsbyquarter
Unit：CNY
stQuarter
| 1stQuarter | 2ndQuarter | 3rdQuarter | 4thQuarter | |
| Operatingrevenue | 810,921,680 | 659,654,497 | 645,394,211 | 872,697,134 |
| Netprofitattributedtoshareholdersofthelistedcompany | 159,276,876 | 26,320,266 | 1,917,154 | -116,222,993 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses | 152,773,333 | 19,386,494 | -3,768,045 | -129,263,608 |
| Netcashflowsfromoperatingactivities | 21,194,646 | 218,226,482 | 118,491,215 | -2,088,884 |
Whethertherearesignificantdifferencesbetweentheabovementionedfinancialindicatorsortheirsumandtherelatedfinancialindicatorsinthequarterlyreportsandsemi-annualreportsdisclosedbytheCompany.
□Yes?No
9.Itemandamountofnon-recurringprofitandloss?Applicable□Inapplicable
Unit：CNY
Item
| Item | 2025 | 2024 | 2023 | Explanation |
| Profitsandlossesondisposalofnon-currentassets(includingtheprovisionforassetimpairmentwrite-offpart) | 1,348,534 | 132,116,926 | 23,852,237 | |
| Governmentgrantsrecordedintothecurrentprofitsandlosses(exceptforthosegovernmentgrantsthatarecloselyrelatedtotheenterprise’snormaloperation,inlinewithnationalpolicyprovisionsandinaccordancewithcertainstandardquotaorrationcontinuedtoenjoy) | 35,137,675 | 52,613,910 | 51,523,799 | |
| Othernon-operatingrevenuesandexpendituresinadditiontotheaforementioneditems | 4,751,888 | 1,244,856 | 9,137,420 | |
| Less：Incometaxeffect | 4,473,472 | 6,873,074 | 13,643,745 | |
| Minorityshareholders’equityeffect(aftertaxes) | 4,601,496 | 4,956,976 | 2,504,497 | |
| Total | 32,163,129 | 174,145,642 | 68,365,214 | -- |
Specificsituationofotherprofitandlossitemsconformingtothedefinitionofnon-recurringprofitandloss?Applicable?InapplicableTheredoesnotexistspecificsituationofotherprofitandlossitemsconformingtothedefinitionofnon-recurringprofitandloss.Explanationforregardingthenon-recurringprofitandlossspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLossasrecurrentprofitandloss?Applicable?InapplicableThereisnosituationregardingthenon-recurringprofitandlossspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLossasrecurrentprofitandloss.
III.ManagementDiscussionandAnalysis
1.MainbusinessesduringthereportperiodTheCompanyneedtocomplywiththedisclosurerequirementsoffoodandliquormanufacturingrelatedbusinessesinShenzhenStockExchangeIndustryInformationDisclosureGuidelineNo.3-IndustryInformationDisclosure.
(1)SituationoftheindustryinwhichtheCompanyoperatesDuringthereportperiod,theCompany’smainbusinesswasproductionandoperationofwineandbrandy,thusprovidingdomesticandforeignconsumerswithhealthyandfashionablealcoholicdrinks.Comparedwithearlierstage,therewerenosignificantchangeshappenedtotheCompany’smainbusiness.ThewineindustrythattheCompanyinvolvedinwasstillingrowthstage.Beingaffectedbymanyfactorsinrecentyears,thecompetitionindomesticwinemarketwasfierce.However,theCompanystillstandsbythepreviousjudgmentandbelievesthattheexistingconsumptionconceptmightchangewiththeincreaseofpeople’sincomelevelandtheirpursuitofarelaxed,romanticandhealthylifestyle.Moredomesticwinewouldbedrunkbypeople,andwinewouldentermoreandmorehouseholdconsumption.Thesituationofcurrentlowaverageconsumptionofdomesticwinewouldgraduallyimprove.TheCompanywasattheforefrontinthedomesticwinemarketandwassignificantlyaheadofmajordomesticcompetitors.TheCompany’sproductsweredividedintotwoseries:wineandbrandy.Forwine,mainbrandsincludedChangyu,NobleDragon,AFIP,Longyu,LongTailedCat,GoldenIcewineValley,Zenithwirl,Vermouth,Rena,BaronBalboa,Donelly,Atrio,KilikanoonandIWCCandsoon.ForBrandy,mainbrandsincludedKoya,Liquan,Mminni,Pagese,RoulletFransacandsoon.
(2)TheproductionlicensesofmainproductsobtainedbytheCompanyinChina
Producername
| Producername | Foodcategory | Obtainingtime | Obtainingmethod | Foodproductionlicensenumber |
| YantaiChangyuPioneerWineCo.,Ltd. | Alcohol | 2021.06.01 | Approvalfromgovernmentauthority | SC11537060100050 |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd. | Alcohol | 2022.08.22 | Approvalfromgovernmentauthority | SC11511280920745 |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd. | Alcohol | 2021.03.25 | Approvalfromgovernmentauthority | SC11521052200370 |
| NingxiaChangyuLongyuEstateCo.,Ltd. | Alcohol | 2018.01.25 | Approvalfromgovernmentauthority | SC11564010500657 |
XinjiangChateauChangyuBaronBalboaCo.,Ltd.
| XinjiangChateauChangyuBaronBalboaCo.,Ltd. | Alcohol | 2017.08.25 | Approvalfromgovernmentauthority | SC11565900100392 |
| YantaiChateauChangyu-CastelCo.,Ltd. | Alcohol | 2021.06.08 | Approvalfromgovernmentauthority | SC11537063600172 |
| ShaanxiChateauChangyuChanggeCo.,Ltd. | Alcohol | 2020.10.19 | Approvalfromgovernmentauthority | SC11561040400532 |
| YantaiChateauKoyaBrandyCo.,Ltd. | Alcohol | 2021.01.11 | Approvalfromgovernmentauthority | SC11537063601165 |
(3)ExplanationforothermajoreventsDuringthereportperiod,theredidnotexistthetrademarkownershipdispute,foodqualityissueorfoodsafetyincidentetc.thathadasignificantimpactontheCompany.MajorsalesmodeTheCompany’smainsalesmodewasthedistributionmode,andmainsaleschannelwasofflinesales,thatis,theCompany’sproductsweredistributedtosalesterminalsthroughapproximately5,000distributorsathomeandabroadandultimatelyprovidedtoconsumers.Distributionmode?Applicable□Inapplicable
(1)Situationofchangeinthenumberofdistributors
| Region | Numberatthebeginningof2025 | Increasednumberduringthisreportperiod | Numberattheendof2025 |
| EasternChina | 2200 | 90 | 2290 |
| SouthChina | 576 | 5 | 581 |
| CentralChina | 397 | -16 | 381 |
| NorthChina | 334 | -11 | 323 |
| NorthwestChina | 153 | 4 | 157 |
| SouthwestChina | 433 | -13 | 420 |
| NortheastChina | 288 | -8 | 280 |
HongKong,Macao,Taiwanandoverseas
| HongKong,Macao,Taiwanandoverseas | 799 | -3 | 796 |
| Total | 5180 | 48 | 5228 |
(2)TheCompanyanddistributorstookcashspotsettlement,andmainlyadoptedbuyoutdistributionmode.
Theratioofsalesinself-ownedexclusiveshopexceeds10%?Applicable?InapplicableSalesofonlinedirectselling?Applicable□InapplicableThechangeinsalespricesofmajorproductsaccountingformorethan10%oftotaloperatingincomeincurrentreportperiodexceeds30%comparedwiththoseinlastreportperiod?Applicable?InapplicableProcurementmodeandprocurementcontent
Unit：CNY
| Procurementmode | Procurementcontent | Theamountofthemainprocurementcontent |
| Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Rawmaterialssuchasgrapes/bulkwine | 684,088,844 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Packagingmaterials | 385,800,469 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Brewingmaterials | 20,667,145 |
| Tender/Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Vineyardsupplies | 2,689,539 |
| Contract | Fuelandpower | 38,583,287 |
| Pricedeterminedbyqualitycomparisonwithstandardpriceitems | Otherwinesandderivatives | 12,804,041 |
Amountofpurchasingrawmaterialsfromcooperativesorfarmersexceeds30%oftotalprocedureamount?Applicable?InapplicableTheyear-on-yearchangeinthepriceofmajoroutsourcedrawmaterialsexceeds30%
| Salesmodel | 2025 | 2024 | ||||
| Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | |
| Distribution | 2,480,871,532 | 1,103,557,256 | 55.52% | 2,773,310,799 | 1,173,187,606 | 57.70% |
| Directsales | 507,795,990 | 226,267,745 | 55.44% | 503,967,548 | 219,414,793 | 56.46% |
| Total | 2,988,667,522 | 1,329,825,001 | 55.50% | 3,277,278,347 | 1,392,602,399 | 57.51% |
?Applicable?InapplicableMajorproductionmodeTheproductionmodeoftheCompanyisself-produce.Manufacturingconsignment?Applicable?InapplicableMajorcomponentsofoperatingcostsPleasereferto‘4.Analysisinmainbusiness’inthischapter.YieldandinventoryPleasereferto‘4.Analysisinmainbusiness’inthischapter.
2.SituationofindustryinwhichtheCompanyoperatesduringthereportperiodIn2025,thedomesticalcoholconsumptionmarketcontinuedtoslump,andthewineindustryinwhichtheCompanyoperatesfacedunprecedentedseverechallenges.Facingthedifficultdevelopmentenvironment,theCompany’smanagementteamproactivelyadoptedaseriesofmeasurestostriveforabreakthrough,adheredtotherightpathwhileinnovating,betterservedusersandmetmarketdemands,andcarriedoutmanypositiveexplorationsandpractices.TheseeffortshavelaidasolidfoundationfortheCompanytoemergefromdifficultiesandachievesustainedandrapiddevelopmentinthefuture,furtherconsolidatingitsleadingpositionintheindustry.TheannualoperatingrevenuereachedCNY2,988.67million,ayear-on-yeardecreaseof8.81%;thenetprofitattributabletoshareholdersoftheparentcompanywasCNY71.29million,adecreaseof
76.64%comparedwiththepreviousyear.
3.AnalysisofcorecompetitivenessComparedwiththeparticipantsinthearenaoftheChinesewinecompetitionsector,theCompanyownsfollowingadvantages:
Firstly,theCompanyhasalargebrandinfluence.Mainbrandsusedhavealonghistory.“Changyu”,“NobleDragon”and“AFIP”areall“Chinafamousbrands”thathavestronginfluenceandgoodreputation.Secondly,theCompanyhassetupanationwidemarketingnetwork.TheCompanyhasformeda“three-level”marketingnetworksystemmainlycomposedoftheCompany’ssalesmenanddistributorsandtheonlinesalesplatformhashadacertainscaleandstronginfluence,owingstrongmarketingabilityandmarketexploitationability.Thirdly,theCompanyhasstrongscientificprowessandaproductR&Dsystem.Relyingonthecountry’s“State-levelWineR&DCenter”,theCompanyhasownedpowerfulwinemakerteam,
masteredadvancedwinemakingtechnologyandproductionprocessesandhadstrongproductinnovationcapacityandperfectqualitycontrolsystem.Fourthly,theCompanyisinpossessionofalotofgrape-growingbasesthatarecompatiblewithitsdevelopmentrequirements.TheCompanyhasdevelopedagreatdealofvineyardsinthemostsuitableareasforwinegrapegrowingsuchasShandong,NingxiaandXinjiang,anditssubsidiaryoverseasenterprisesalsoownmatchinggrapebasesinlocalarea,makingtheoverallscaleandstructuregenerallymeettheCompany’sneedsforfuturedevelopment.Fifthly,productsinhigh,mediumandlow-gradeaswellasvarietiesandcategoriesareallcomplete.Over100varietiesofseriesproductssuchaswine,brandyandsparklingwinecoversvariousgrades,includinghigh,mediumandlow-grade,whichcanmeetdifferentconsumergroups’demands.TheCompanyhastakenthedominantstatusinthedomesticwineindustryaftermanyyears’developmentandhascomparativeadvantagesinthefuturecompetition.Sixthly,theCompanyhasarelativelyperfectmotivationsystem.MostofCompany’semployeesindirectlyholdtheCompany’sequitythroughcontrollingshareholders.Therearehighconsistencybetweenemployeebenefitsandshareholdersbenefits,infavorofmotivatingemployeestocreatevalueforshareholders.Seventhly,theCompanyhassetupflexibleandefficientdecision-makingmechanism.TheCompany’scoremanagementteamalwaysmaintainsaworkingstyleofunityandpragmaticandflexibleandefficientdecision-makingmechanism,whichmakestheCompanycandealwithmarketchangesmorecalmly.Eighthly,theglobalproductioncapacitylayouthasbeenbasicallycompleted.TheCompanyhascompletedproductioncapacitylayoutinChina,France,Chile,Spain,Australiaandothermajorwineproducingcountriesintheworld,enablingmakingbetteruseofglobalhigh-qualityrawmaterialresources,capital,talentsandadvancedproductionprocessesandtechnologiestoprovideconsumerswithdiversifiedqualityproductsandbetterserveconsumers.Basedontheabovereasons,theCompanyhasformedrelativelystrongcorecompetenceandwillmaintainarelativelydominantpositioninthefuturepredictablemarketcompetition.
4.Analysisinmainbusiness
(1)Summarization
Description
| Description | Increaseordecreaseduringthisperiodoverlastyear | Causeofsignificantchanges |
| Operatingrevenue | -8.81% | Mainlyduetothedecreaseinsalesvolume |
| Operatingcost | -4.51% | Mainlyduetothedecreaseinsalesvolume |
Salesexpense
| Salesexpense | -6.58% | Mainlyduetothedecreasedmarketingexpenseresultingfromdecreasedmarketinvestment |
| Managementexpense | -4.18% | Mainlyduetothedecreaseinemployeecompensation |
| R&Dexpense | 9.75% | MainlyduetotheincreaseinthecostoftestingandconsumablematerialsresultingfromtheincreasedCompany’sR&Defforts |
| Financialexpense | -219.56% | Mainlyduetotheincreaseinexchangegainsandthereductioninexternalloans |
| Netamountofcashflowgeneratedinoperatingactivities | -10.54% | Mainlyduetothedecreaseinoperatingincomeduringtheyear |
| Netamountofcashflowgeneratedininvestmentactivities | 38.22% | Mainlyduetotheincreaseinthenetcashreceivedfromthedisposaloffixedassets,intangibleassetsandotherlong-termassets |
| Netamountofcashflowgeneratedinfinancingactivities | 46.32% | Mainlyduetothedecreaseincashusedfordebtrepaymentandthereductionindividenddistribution |
ReviewandsummaryoftheprocessoftheCompany’searly-discloseddevelopmentstrategyandbusinessplanduringthereportperiodDuringthereportperiod,theCompanycontinuedtoadheretothetenetof"Survive,ConsolidatetheFoundation,SeekBreakthroughs".Inresponsetotheincreasinglydifficultandcomplexmarketenvironment,theCompanyboldlyreformedandinnovated,continuouslyadoptedandtestedvariousmarketstrategies,andachievedcertainpositiveresults.However,itstillfailedtoreversethedownwardtrendofthemarketandfailedtoachievetheoperatingobjectivessetatthebeginningoftheyear.TheannualoperatingrevenuereachedCNY2,988.67million,ayear-on-yeardecreaseof
8.81%;thenetprofitattributabletoshareholdersoftheparentcompanywasCNY71.29million,adecreaseof76.64%comparedwiththepreviousyear.In2025,theCompanymainlycarriedoutthefollowingwork:
First,allbusinessdivisionspooledtheireffortstotacklechallengesandpursuedinnovationforchange.TheBrandyBusinessDivisionfurtherclarifiedthedevelopmentstrategyforbrandy,putforwardthepromotionalsloganof“BreakingCognacStandards,ChineseChateauBrandy--NoAddedLiquidSugar,NoAddedOakExtract”,furtherinnovatedthecooperationmodel,andstrengtheneditsconfidenceindevelopment;itsteadfastlyadheredtoregularpracticessuchastastingeventsandchateauexperiences,anddeeplycultivatedtheexistingmarket;ittargetedyoungconsumergroups,intensifiedchannelinnovation,andachievedcross-circlegrowth;itjoinedhandswithHalfAndHalftolayoutthechainbarchannel,takingsolidstepsindeepeningbrandinfluenceandembracingyounggroups.TheTourismBusinessDivisiontookserviceexperienceupgradingasthecore,andfocusedonimprovingservicequality;itactivelyimplementedthe“goglobalandbringin”strategy,strengthenedtheawarenessofempoweringthebrand,notonlyfullycompletingthemainbusinessindicatorsassignedbytheCompany,butalsoenhancingtheinfluenceoftheChangyubrand.TheOnlineBusinessDivisionstrengthenedonlinemarketingandpromotion,built
athree-dimensionalshort-videomatrixincontent,constructedanefficientclosed-loopfrombrandexposuretosalesconversion,andgraduallymadeitsuserstructureyounger;in2025,theCompanylaunchedtheLongtailCatwhitewinetargetingyoungconsumergroups,whichwaswidelyfavoredbyyoungconsumersforitssweetandsmoothtasteandcutedesign,withcumulativesalesreachingCNY50million.TheChateauWineBusinessDivisionfocusedontheannihilationbattlemarketsandpersistedincirclemarketing;centeringoncorepositioningsuchas“KingofGlobalWineKings”,“StateBanquetWine”and“RedBrewedWhite”,itintensifiedthebrandpromotionofLongyuandAFIP;in2025,itcarriedoutatotalof1,669tastingevents,andnewlybuilt7chateaucultureexperiencehallsand47brandhalls.TheNobleDragonBusinessDivisionrestructuredthecoreproductmatrixandvigorouslypromotedtheofflinedevelopmentoftheLongTailedCatbrand;itcontinuedtostrengthenbanquetpromotion,systematicallysortedoutpromotionalslogansandmarketdevelopmentstrategies,launchedthenewproduct“CabernetNo.1”,anddeeplycultivatedthebanquetscenario.TheImportedWineBusinessDivisionoptimizedthestructureofmanagementdepartments,effectivelyimprovingpercapitaefficiency;itreachedin-depthcooperationwithWandaHotelManagementCompanytostrengthenchannelexpansion;itcarriedoutthemedpromotionactivitiesfortheDryWhiteSeasonincateringterminals.Second,theCompanytooksafetyasthefoundation,tookqualityastheessence,andadheredtotheredlinesandbottomlines.TheCompanycomprehensivelyimprovedemployees’riskpreventionawarenessandemergencyresponsecapabilitiesbycarryingoutsafetytraining,hiddenhazardtreatmentandemergencydrillactivities;itbuiltasystematicsafetyculturecultivationsystembyclarifyingsafetycommitments,promotingpre-operationremindersandestablishingapost“requiredknowledgeandskills”Q&Amechanism;theCompanywasawardedthetitleofAdvancedUnitbytheYantaiEmergencyManagementandWorkSafetyAssociation.TheCompanystrictlyimplementedthe“dailycontrol,weeklyinspection,monthlyscheduling”mechanism,adheredtothe“fourstrictest”requirements,andensuredproductquality;itinnovativelybuilta“fingerprintspectrum”technicalsystemforproductidentification,realizingthetriplefunctionsofproductstabilityjudgment,sourcetraceabilityandauthenticityidentification;itsuccessfullycompletedgrapepurchaseandprocessingwork,withasignificantincreaseintheproportionofhigh-qualitybulkwineandaremarkabledecreaseintheaveragecostpertonofwine;theCompany’s“digitalqualitymanagementmodelfortheentireindustrialchain”wasratedasabenchmarkenterprisefordigitalapplicationinYantai,andtherelevantpracticeswerelistedasa“modelcaseofintelligenttransformationoftraditionalmanufacturing”bytheMunicipalBureauofIndustryandInformationTechnology;2provincial-levelscientificresearchplatformswereadded;itwon1firstprizeofShaanxiProvincialScienceandTechnologyProgressAwardand1secondprizeofShandongProvincialScienceandTechnologyProgressAward;fourscientificresearchachievements,suchas“R&Dandindustrializationofherbal(Polygonatum)wine”,wereappraisedbytheChinaNationalLightIndustryCouncilasthree“internationalleading”andone“internationaladvanced”;itparticipatedintheformulationof3groupstandards;itobtained1nationalinventionpatentandappliedfor3utilitymodelpatents;itparticipatedininfluentialdomesticandforeignwineandspiritscompetitions,winning52awardsincludinggrandgoldmedalsandgoldmedals.
Third,theCompanydeepenedtheeffectivenessoffinancialmanagementandstrengthenedtheresponsibilitiesofauditsupervision.TheCompanystrengthenedcapitalmanagement,savedmorethanCNY1millioninfinancingcosts,andincreasedinterestincomebymorethanCNY7millionthroughstructureddeposits,agreementdepositsandothermethods;conductedfiscalandtaxplanningfrommultipleperspectivestosavefiscalandtaxexpenditures;strengthenedthefinancialsupervisionofoverseasenterprises,activelyexploredmorestablecross-borderfinancingsolutions,andensuredthehealthyoperationofoverseasenterprises;completedtheassetdisposalofRoulletFransacCompany,furtherrevitalizedassetsandoptimizedresourceallocation.TheCompanystrengthenedauditsupervision,auditedtheauthenticityofprofits,theintegrityandeffectivenessofassetsoftheproductionandsalessystemsin2024;completedtheoutgoingauditofsalessystemmanagersandspecialauditsofnon-performingassets,economicliabilityinvestigation,andadvertisingexpensesofbusinessdivisions;investigatedtherelevantresponsiblepersonswhocausedeconomiclossesin2024;completedtheauditoftechnicaltransformationprojects.Fourth,theCompanycontinuedtoimplementB-sharerepurchasestomaintaintheCompany’sstockvalue.FollowingthefirstB-sharerepurchasein2024,theCompanyimplementedandcanceledanotherB-sharerepurchasein2025,conveyingtheCompany’sfirmconfidenceinthelong-termvalueofChangyuB-sharestothesecondarymarket,andlayingasolidfoundationfortheCompany’scapitalmarketimagebuildingandvalueenhancement.
(2)Revenueandcost
①Compositionofoperatingrevenue
Unit:CNY
2025
| 2025 | 2024 | Year-on-yearincreaseordecrease(%) | |||
| Amount | Proportioninoperatingrevenue | Amount | Proportioninoperatingrevenue | ||
| Totaloperatingrevenue | 2,988,667,522 | 100% | 3,277,278,347 | 100% | -8.81% |
| Sector-classified | |||||
| Sectorofliquorandalcoholicbeverage | 2,988,667,522 | 100% | 3,277,278,347 | 100% | -8.81% |
| Product-classified | |||||
| Wine | 2,139,677,741 | 71.59% | 2,438,454,334 | 74.40% | -12.25% |
| Brandy | 759,016,796 | 25.40% | 740,131,229 | 22.58% | 2.55% |
| Tourism | 70,632,931 | 2.36% | 80,672,837 | 2.46% | -12.45% |
| Others | 19,340,054 | 0.65% | 18,019,947 | 0.55% | 7.33% |
| Area-classified | |||||
| Domestic | 2,370,215,804 | 79.31% | 2,685,914,511 | 81.96% | -11.75% |
| Overseas | 618,451,718 | 20.69% | 591,363,836 | 18.04% | 4.58% |
| Salesmodel-classified | |||||
| Distribution | 2,480,871,532 | 83.01% | 2,773,310,799 | 84.62% | -10.54% |
| Directsales | 507,795,990 | 16.99% | 503,967,548 | 15.38% | 0.76% |
②Theindustry,product,regionandsalesmodelthataccountforover10%oftheCompany’soperatingrevenueoroperatingprofit?Applicable□Inapplicable
Unit:CNY
Operatingrevenue
| Operatingrevenue | Operatingcost | Grossmargin | Year-on-yearincreaseordecrease(%)ofoperatingrevenue | Year-on-yearincreaseordecrease(%)ofoperatingcost | Year-on-yearincreaseordecrease(%)ofgrossprofitrate | |
| Industry-classified | ||||||
| Industryofliquorandalcoholicbeverage | 2,988,667,522 | 1,329,825,001 | 55.50% | -8.81% | -4.51% | -3.48% |
| Product-classified | ||||||
| Wine | 2,139,677,741 | 958,891,406 | 55.19% | -12.25% | -7.86% | -3.72% |
| Brandy | 759,016,796 | 329,959,151 | 56.53% | 2.55% | 6.80% | -2.97% |
| Tourism | 70,632,931 | 30,901,139 | 56.25% | -12.45% | -8.28% | -3.42% |
| Others | 19,340,054 | 10,073,305 | 47.91% | 7.33% | 8.86% | -1.51% |
| Area-classified | ||||||
| Domestic | 2,370,215,804 | 937,653,583 | 60.44% | -11.75% | -9.14% | -1.85% |
| Overseas | 618,451,718 | 392,171,418 | 36.59% | 4.58% | 8.75% | -2.43% |
| Salesmodel-classified | ||||||
| Distribution | 2,480,871,532 | 1,103,557,256 | 55.52% | -10.54% | -5.94% | -2.18% |
| Directsales | 507,795,990 | 226,267,745 | 55.44% | 0.76% | 3.12% | -1.02% |
UndertheconditionthatthestatisticalcaliberoftheCompany’smainbusinessdataisadjustedduringthereportperiod,theCompany’smainbusinessdataadjustedonthebasisofcaliberattheendofreportperiodinrecentoneyear.□Applicable?Inapplicable③WhethertheCompany’ssalesrevenueformaterialobjectismorethanlaborservicerevenue?Yes□No
| Sector | Item | Unit | 2025 | 2024 | Year-on-yearincreaseordecrease(%) |
| Alcoholandalcoholicbeverageindustry | Salesvolume | Ton | 74,135 | 78,102 | -5.08% |
| Yield | Ton | 72,047 | 78,147 | -7.81% | |
| Inventory | Ton | 24,814 | 26,687 | -7.02% | |
| Wine | Salesvolume | Ton | 52,320 | 57,652 | -9.25% |
| Yield | Ton | 51,999 | 56,120 | -7.34% | |
| Inventory | Ton | 16,105 | 16,370 | -1.62% | |
| Brandy | Salesvolume | Ton | 21,816 | 20,450 | 6.68% |
Yield
| Yield | Ton | 20,048 | 22,027 | -8.99% |
| Inventory | Ton | 8,710 | 10,317 | -15.58% |
Explanationonthecausesofover30%year-on-yearchangesoftherelatedcomparisondata?Applicable?InapplicableNone
④ThefulfillmentofsignificantsalescontractandpurchasecontractsignedbytheCompanyuptothereportperiod□Applicable?Inapplicable
⑤CompositionofoperatingcostsProductcategories
Unit:CNY
| Productcategory | Item | 2025 | 2024 | Year-on-yearincreaseordecrease(%) | ||
| Amount | Proportionintheoperatingcost(%) | Amount | Proportionintheoperatingcost(%) | |||
| Wine | Blendingliquor | 478,056,830 | 49.86% | 519,678,925 | 49.93% | -8.01% |
| Packingmaterial | 239,437,985 | 24.97% | 262,997,298 | 25.25% | -8.96% | |
| Wages | 35,935,328 | 3.75% | 38,055,803 | 3.66% | -5.57% | |
| Manufacturingcost | 133,909,718 | 13.97% | 139,210,471 | 13.34% | -3.81% | |
| Contractperformancecosts | 71,551,545 | 7.46% | 80,773,376 | 7.82% | -11.42% | |
| Brandy | Blendingliquor | 155,445,245 | 47.11% | 139,052,184 | 45.09% | 11.79% |
| Packingmaterial | 85,679,430 | 25.97% | 72,469,801 | 23.54% | 18.23% | |
| Wages | 9,497,025 | 2.88% | 8,826,222 | 2.87% | 7.60% | |
| Manufacturingcost | 53,891,266 | 16.33% | 59,918,123 | 19.43% | -10.06% | |
| Contractperformancecosts | 25,446,185 | 7.71% | 28,674,539 | 9.08% | -11.26% | |
ExplanationNo
⑥Whethertherearechangesofconsolidationscopeduringthereportperiod?Yes?NoDuringthereportingperiod,theCompanydisposedofitsequityinEtablissementsRoulletFransac,andasaresult,thatcompanywasnolongerincludedintheCompany’sconsolidationscope.⑦MajorchangesoradjustmentsoftheCompany’sbusinesses,productsorserviceduringthereportperiod
□Applicable?Inapplicable
⑧InformationofmajorsalescustomersandmajorsuppliersTheCompany’smajorsalescustomers
Thetotalsalesamountofthetopfivecustomers（CNY）
| Thetotalsalesamountofthetopfivecustomers（CNY） | 194,164,276 |
| Theproportionthattotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 6.50% |
| Theproportionthatsalesamountoftherelatedpartyinthetotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 0% |
InformationoftheCompany’s5biggestsalescustomers
| No. | Customername | Salesamount（CNY） | Proportionintotalsalesfortheyear（%） |
| 1 | Rank1st | 95,095,754 | 3.18% |
| 2 | Rank2nd | 32,780,119 | 1.10% |
| 3 | Rank3rd | 22,875,348 | 0.77% |
| 4 | Rank4th | 22,666,292 | 0.76% |
| 5 | Rank5th | 20,746,763 | 0.69% |
| Total | -- | 194,164,276 | 6.50% |
Othersituationexplanationsofmajorcustomers□Applicable?InapplicableInformationontheCompany’smainsuppliers
| Thetotalpurchaseamountofthetop5suppliers(CNY) | 398,284,717 |
| Theproportionofthetotalpurchaseamountofthetop5suppliersintheannualpurchaseamount | 34.80% |
| Theproportionoftherelatedpartypurchaseamountinthetop5supplierpurchaseamountinannualpurchaseamount | 4.85% |
InformationontheCompany’stop5biggestsuppliers
| No. | Suppliername | Purchaseamount(CNY) | Proportionintotalpurchasefortheyear（%） |
| 1 | Rank1st | 117,519,591 | 10.27% |
| 2 | Rank2nd | 87,833,512 | 7.67% |
| 3 | Rank3rd | 75,451,144 | 6.59% |
| 4 | Rank4th | 61,998,992 | 5.42% |
| 5 | Rank5th | 55,481,477 | 4.85% |
| Total | -- | 398,284,716 | 34.80% |
Othersituationexplanationsofmainsuppliers
□Applicable?Inapplicable
Duringthereportingperiod,therevenuefromtheCompany’stradingbusinessaccountedformorethan10%ofthetotalrevenue
□Applicable?Inapplicable
(3)Expense
Unit:CNY
2025
| 2025 | 2024 | Year-on-yearincreaseordecrease(%) | Explanationofsignificantchanges | |
| Salesexpense | 946,328,561 | 1,012,980,420 | -6.58% | Mainlyduetothedecreaseinmarketingexpenseresultingfromdecreasedmarketinvestment |
| Managementexpense | 300,804,447 | 313,911,881 | -4.18% | Mainlyduetothedecreaseinemployeecompensation |
| Financialexpense | -15,346,946 | 12,836,073 | -219.56% | Mainlyduetotheincreaseinexchangegains. |
| ResearchandDevelopmentexpense | 21,442,819 | 19,538,243 | 9.75% | MainlyduetotheincreasedinthecostoftestingandconsumablematerialsresultingfromtheincreasedCompany’sincreasedR&Defforts. |
TheCompanyneedstocomplywiththedisclosurerequirementsofthefoodandwinemanufacturingindustryassetoutintheGuidanceonSelf-RegulationofListedCompaniesofShenzhenStockExchangeNo.3-IndustryInformationDisclosure.
(4)Researchanddevelopmentinvestment?Applicable□Inapplicable
| Nameofmainresearchanddevelopmentproject | Projectpurpose | Projectprogress | Target | PredictedinfluenceintheCompany’sfuturedevelopment |
| — | — | — | — | — |
TheCompany’sresearchanddevelopmentpersonnel
| 2025 | 2024 | Percentageofchanges(%) | |
| NumberofR&Dpersonnel(person) | 145 | 139 | 4.32% |
| TheproportionofthenumberofR&Dpersonnel | 6.87% | 6.44% | 0.43% |
| EducationalstructureofR&Dpersonnel | |||
| Bachelor | 51 | 48 | 6.25% |
| Postgraduate | 28 | 25 | 12% |
| Doctor | 1 | 1 | 0% |
| BelowBachelor | 65 | 65 | 0% |
| AgestructureofR&Dpersonnel | |||
Under30-year-old
| Under30-year-old | 40 | 34 | 17.65% |
| 30-to40-year-old | 41 | 41 | 0% |
| Above40-year-old | 64 | 64 | 0% |
TheinvestmentoftheCompany’sR&D
| 2025 | 2024 | Percentageofchanges(%) | |
| R&Dinvestmentamount(CNY) | 21,442,819 | 19,538,243 | 9.75% |
| R&Dinvestmentasapercentageofoperatingincome | 0.72% | 0.60% | 0.12% |
| AmountofR&Dinvestmentcapitalized(CNY) | 0 | 0 | 0% |
| CapitalizedR&DinvestmentasapercentageofR&Dinvestment | 0% | 0% | 0% |
Reasonsandeffectsofmajorchangesinthecompositionofthecompany’sR&Dpersonnel
□Applicable?InapplicableReasonsforthesignificantchangeintheproportionoftotalR&Dinvestmentinoperatingincomecomparedwiththepreviousyear□Applicable?InapplicableReasonsforthesubstantialchangesinthecapitalizationrateofR&Dinvestmentanditsrationalityexplanation
□Applicable?Inapplicable
(5)Cashflow
Unit:CNY
| Item | 2025 | 2024 | Year-on-yearincreaseordecrease(%) |
| Subtotalofcashinflowinoperatingactivities | 2,934,731,113 | 3,673,427,471 | -20.11% |
| Subtotalofcashoutflowinoperatingactivities | 2,578,907,654 | 3,275,686,404 | -21.27% |
| Netamountofcashflowgeneratedinoperatingactivities | 355,823,459 | 397,741,067 | -10.54% |
| Subtotalofcashinflowininvestmentactivities | 267,530,363 | 511,439,930 | -47.69% |
| Subtotalofcashoutflowininvestmentactivities | 91,671,276 | 384,211,357 | -76.14% |
| Netamountofcashflowgeneratedininvestmentactivities | 175,859,087 | 127,228,573 | 38.22% |
| Subtotalofcashinflowinfinancingactivities | 527,318,069 | 507,959,260 | 3.81% |
| Subtotalofcashoutflowinfinancingactivities | 938,993,831 | 1,274,904,376 | -26.35% |
| Netamountofcashflowgeneratedinfinancingactivities | -411,675,762 | -766,945,116 | 46.32% |
| Netincreaseofcashandcashequivalents | 121,400,538 | -245,428,201 | Inapplicable |
Explanationofmaininfluencefactorscontributingtogreatchangesinrelateddataonyear-on-yearbasis?Applicable?Inapplicable
Unit:CNY
Item
| Item | 2025 | 2024 | Year-on-yearincreaseordecrease(%) | Explanation |
| Subtotalofcashinflowinoperatingactivities | 2,934,731,113 | 3,673,427,472 | -20.11% | Mainlyduetothedecreaseincashreceivedfromthesaleofgoodsandprovisionofservices |
| Subtotalofcashoutflowinoperatingactivities | 2,578,907,654 | 3,275,686,405 | -21.27% | Mainlyduetothedecreaseincashusedforpurchasinggoodsandpayingforservices |
| Subtotalofcashinflowininvestmentactivities | 267,530,363 | 511,439,930 | -47.69% | Mainlyduetothedecreaseinthecashreceivedfromrecoveringinvestments |
| Subtotalofcashoutflowininvestmentactivities | 91,671,276 | 384,211,357 | -76.14% | Mainlyduetothedecreaseincashpaidforinvestment |
| Netamountofcashflowgeneratedininvestmentactivities | 175,859,087 | 127,228,573 | 38.22% | Mainlyduetotheincreaseinthenetcashreceivedfromthedisposaloffixedassets,intangibleassetsandotherlong-termassets |
| Subtotalofcashoutflowinfinancingactivities | 938,993,831 | 1,274,904,376 | -26.35% | Mainlyduetothedecreaseincashusedfordebtrepaymentandthereductionindividenddistribution |
| Netamountofcashflowgeneratedinfinancingactivities | -411,675,762 | -766,945,116 | 46.32% | Mainlyduetothedecreaseincashusedfordebtrepaymentandthereductionindividenddistribution |
| Netincreaseofcashandcashequivalents | 121,400,538 | -245,428,201 | Inapplicable | Mainlyduetotheincreaseinthenetcashflowfromfinancingactivities |
ExplanationonthecausesofmajordifferencesbetweenthenetcashflowgeneratedbytheCompany’soperatingactivitiesandnetprofitofthisyearduringthereportperiod.?Applicable?InapplicableDuringthereportingperiod,themajordifferencesbetweenthenetcashflowgeneratedfromtheCompany’soperatingactivitiesandthenetprofitofthisyearwasmainlyduetothedepreciationoffixedassets.
5.Analysistonon-mainbusiness
□Applicable?Inapplicable
6.Assetsandliabilities
(1)Significantchangesofassetscomposition
Unit:CNY
Attheendof2025
| Attheendof2025 | Atthebeginningof2025 | Proportionincreaseordecrease(%) | Explanationonsignificantchanges | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Monetaryfunds | 1,890,611,804 | 15.69% | 1,797,848,130 | 14.36% | 1.33% | Nosignificantchanges |
| AccountReceivables | 264,932,724 | 2.20% | 270,829,601 | 2.16% | 0.04% | Nosignificantchanges |
| Contractassets | 0% | 0% | 0% | Nosignificantchanges | ||
| Inventory | 2,836,077,209 | 23.53% | 2,904,070,556 | 23.19% | 0.34% | Nosignificantchanges |
| Investmentrealestate | 19,900,228 | 0.17% | 21,960,451 | 0.18% | -0.01% | Nosignificantchanges |
| Long-termequityinvestments | 26,656,197 | 0.22% | 34,864,748 | 0.28% | -0.06% | Nosignificantchanges |
| Fixedassets | 5,308,778,632 | 44.05% | 5,551,671,795 | 44.34% | -0.29% | Nosignificantchanges |
| Constructioninprogress | 4,313,088 | 0.04% | 10,177,372 | 0.08% | -0.04% | Nosignificantchanges |
| Right-of-useasset | 55,252,509 | 0.46% | 71,761,262 | 0.57% | -0.11% | Nosignificantchanges |
| Short-termborrowings | 240,674,788 | 2% | 216,140,346 | 1.73% | 0.27% | Nosignificantchanges |
| Contractliability | 135,067,463 | 1.12% | 128,090,353 | 1.02% | 0.10% | Nosignificantchanges |
| Long-termborrowings | 52,374,840 | 0.43% | 50,637,203 | 0.40% | 0.03% | Nosignificantchanges |
| Leaseliability | 19,437,830 | 0.16% | 27,542,829 | 0.22% | -0.06% | Nosignificantchanges |
Foreignassethasahighproportion?Applicable□Inapplicable
Unit:CNY
Detailsofassets
| Detailsofassets | Formationreasons | Assetsscale | Location | Operationmode | Controlmeasuresforsafeguardingofassetsecurity | Earningcondition | ProportionofoverseasassetsintheCompany’snetassets | Whethertherearesignificantimpairmentrisks |
| HaciendaYVinedosMarquesDelAtrio.SL | Acquisitionofequity | 658,542,233 | Spain | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOonfinancialmanagement. | 21,140,947 | 5.46% | No |
| IndomitaWineCompanyChile,S.p.A. | Establishmentofjointventure | 545,731,778 | Chile | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | 7,780,198 | 4.53% | No |
| KilikanoonEstatePty.,Ltd. | Acquisitionofequity | 143,137,440 | Australia | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | -3,431,981 | 1.19% | No |
| FrancsChampsParticipationsSAS | Soleproprietorshipestablishment | 199,491,321 | France | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughdirectlyappointingseniorexecutive. | -12,746,896 | 1.66% | No |
| Otherexplanation | None | |||||||
(2)Assetsandliabilitiesmeasuredatfairvalue
□Applicable?Inapplicable
(3)LimitationsofassetsrightsuptotheendofthereportperiodPleaserefertothe‘52.Assetswithrestrictiveownershiptitleorrightofuse’ofthe‘Notestothefinancialstatements’inthisreport’sfinancialreport.
7.Investmentconditionanalysis
(1)Overallsituation?Applicable□Inapplicable
Investmentamountduringthereportperiod(CNY)
| Investmentamountduringthereportperiod(CNY) | Investmentamountofthesameperiodoflastyear(CNY) | Variation |
| 30,439,700 | 27,738,600 | 9.74% |
(2)Casesofacquiredsignificantequityinvestmentsduringthereportperiod
□Applicable?Inapplicable
(3)Casesofsignificantongoingnon-equityinvestmentsduringthereportperiod?Applicable□Inapplicable
Unit:CNY
| Projectname | Investmentmode | Whetherbelongstofixedassetsinvestment | Involvedsectorsofinvestmentprojects | Investmentamountduringthereportperiod | Accumulatedactualinvestmentamountuptotheendofthereportperiod | Capitalsource | Projectprogress | Estimatedearnings | Accumulatedrealizedearningsuptotheendofthereportperiod | Reasonsforunreachedplanningscheduleandestimatedearnings | Disclosuredate(ifhave) | Disclosureindex(ifhave) |
| YantaiChangyuInternationalWineCityBlendingandCoolingCenter | Self-constructed | Yes | Liquorandalcoholicbeverage | 0 | 1,705,784,100 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | PleaserefertoResolutionAnnouncementofSeventhSessionBoard |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
sector
| YantaiChangyuInternationalWineCityBottlingCenter | Self-constructed | Yes | sector | 0 | 1,136,520,000 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | ofDirectors4thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors8thMeeting,SeventhSessionBoardofDirectors10thMeeting,ResolutionAnnouncementofEighthSessionBoardofDirectors4thMeeting,ResolutionAnnouncementofEighthSessionBoardofDirectors11thMeeting,ResolutionAnnouncementofNinthSessionBoardofDirectors5thMeeting,ResolutionAnnouncementofNinthSessionBoardofDirectors9thMeetingandResolutionAnnouncementofNinthSessionBoardofDirectors11thMeeting |
| OakBarrelProcurementProject | Self-constructed | Yes | 10,506,700 | 237,520,900 | Ownedfund | 97% | 0 | 0 | — | 2021.04.28 | ||
| InfrastructureImprovementProjectofChangyuIndustrialPark | Self-constructed | Yes | 14,200,000 | 14,200,000 | Ownedfund | 80% | 0 | 0 | — | 2022.04.27 | ||
| YantaiLocalCompaniesandChateauxPlacedOtherThanYantaiProject | Self-constructed | Yes | 5,733,000 | 5,733,000 | Ownedfund | 80% | 0 | 0 | — | 2025.04.18 |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
disclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/)
| disclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/) | ||||||||||||
| Total | -- | -- | -- | 30,439,700 | 3,099,758,000 | -- | -- | 0 | 0 | -- | -- | -- |
(4)Financialassetsinvestment
①Securityinvestmentsituation
□Applicable?InapplicableTherearenosecurityinvestmentsfortheCompanyduringthereportperiod.
②Derivativesinvestment
□Applicable?InapplicableTherearenoderivativesinvestmentsfortheCompanyduringthereportperiod.
8.Saleofsignificantassetsandequities
(1)Saleofsignificantassets?Applicable?InapplicableTherearenosaleofsignificantassetsfortheCompanyduringthereportperiod.
(2)Saleofsignificantequities?Applicable?Inapplicable
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Counter
party
| Counterparty | Soldequity | Saledate | Transactionprice(CNY’0000) | Theequitycontributedtothenetprofitofthelistedcompanyfromthebeginningofthecurrentperiodtothedateofsale(CNY’0000) | Theimpactofthesaleonthecompany | Theproportionofthenetprofitcontributedbyequitysaletothetotalnetprofitofthelistedcompany | Equitysalepricingprinciples | Whetheritisarelatedtransaction | Theassociatedrelationshipwiththecounterparty | Whethertheequityinvolvedhavebeenfullytransferred | Whetheralltheclaimsanddebtsinvolvedhavebeentransferred | Disclosuredate | Disclosureindex |
| ELIORGROUPSA | 100%equityinterestinETABLISSEMENTSROULLETFRANSACheldbyFrancsChampsParticipationsSAS,asubsidiaryoftheCompany;TherealestateheldbytheCompanyrelatedtotheproductionandoperationoftheETABLISSEMENTSROULLETFRANSAC. | 2025.06.11 | 3,953 | -19.73 | Throughcontinuousefforts,theCompany’sdomesticbrandofbrandyhasmadesignificantprogress.ThecurrentproductqualityisfullycomparabletothatofFrenchcognac.Inordertofocusmoreonthedevelopmentofthedomestichigh-endbrandybrandKoya,theCompanyhasdecidedtotransferitsequityinRoulletFransac.ItisalsoconducivetotheCompanyacceleratingtheprogressofassetdisposal,optimizingtheassetstructure,betterrecoveringfundsandimprovingoperatingefficiency. | -0.38% | Negotiatedpricing | No | No | Yes | Yes | 2025.06.10 | PleaserefertoTheAnnouncementRegardingonTransferringEquityandRelatedRealEstateAssetsofEtablissementsRoulletFransac |
9.Analysisofmainholdingandjointstockcompanies?Applicable?InapplicableSituationofmainsubsidiariesandjointstockcompaniesaffectingover10%oftheCompany’snetprofit
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Unit:CNY
Companyname
| Companyname | Companytype | Mainbusiness | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| YantaiChangyuPioneerWineSalesCo.,Ltd. | Subsidiary | Sales | CNY8million | 357,491,082 | 40,035,494 | 1,902,209,718 | 73,714,987 | 62,646,672 |
| YantaiChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY5million | 180,618,334 | 166,094,289 | 766,987,544 | 101,461,661 | 76,142,940 |
| ChangyuTradingCo.,Ltd.inDevelopmentZoneofYantai | Subsidiary | Sales | CNY5million | 84,381,035 | 15,239,443 | 102,950,328 | 30,236,437 | 22,648,836 |
| LaizhouChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY1million | 98,190,941 | 1,087,342 | 249,115,189 | 25,180,579 | 18,903,105 |
Acquisitionanddisposalofsubsidiariesduringthereportperiod?Applicable?Inapplicable
| CompanyName | Themethodsofacquiringanddisposingofsubsidiariesduringthereportingperiod | Theimpactontheoverallproductionandoperationaswellastheperformance |
| ETABLISSEMENTSROULLETFRANSAC | TheFrancsChampsParticipationsSAS,asubsidiaryoftheCompany,hastransferredits100%equityinETABLISSEMENTSROULLETFRANSACforapriceofEUR2.6milliontoELIORGROUPSA. | Throughcontinuousefforts,theCompany’sdomesticbrandofbrandyhasmadesignificantprogress.ThecurrentproductqualityisfullycomparabletothatofFrenchcognac.Inordertofocusmoreonthedevelopmentofthedomestichigh-endbrandybrandKoya,theCompanyhasdecidedtotransferitsequityinRoulletFransac.ItisalsoconducivetotheCompanyacceleratingtheprogressofassetdisposal,optimizingtheassetstructure,betterrecoveringfundsandimprovingoperatingefficiency. |
Explanationonmainholdingandjointstockcompanies
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
10.SituationofthestructuredsubjectscontrolledbytheCompany□Applicable?Inapplicable
11.ExpectationfortheCompany’sfuturedevelopmentOnthebasisofourlimitedexperienceandprofessionalskills,theCompanymakesthefollowingjudgmentsonthewineindustryandfuturedevelopment:
(1)ThesectorcompetitionpatternanddevelopmenttrendIn2026,theCompanyexpectsthatthecompetitioninthewinemarketwillremainveryfierce.Signsofrecoveryinthewineindustryhavenotyetemerged,andthechallengesfacedbytheCompanywillbecomeevenmorecomplexandsevere.However,therearealsomanyfavorablefactorsforthedevelopmentofthewineindustry:Thelocalgovernmentsofeachwine-producingregionareactivelyrespondingtosupportthedevelopmentofthewineindustry;Therearemanyhigh-net-worthindividualsinChina,bringingalargebaseofhigh-enddemand,andtheatmosphereofwineconsumptionandtheperceptionofthefactthatwineishealthyaregraduallyforming;Youngandtrendydrinkersareontherise,beginningtoinfluencethefuturedevelopmenttrendofwineconsumption;Withtheriseofthenationaltide,theconsumptionofdomesticgoodshasgraduallybecomeafashion;Inthelongrun,thehugedevelopmentpotentialofdomesticwineshasnotchangedandtheindustrywillcontinuetofocusoncorebrands.Insuchacaseoflong-termcoexistenceofopportunitiesandchallenges,asalways,theCompanybelievesthatthoseenterprisesthatpossessstrongbrandinfluenceandmarketingability,catchtheopportunities,activelytakeadjustments,makefulluseofnewlyemergingandtraditionalsaleschannels,makeeffortstoguideandcultivatewineconsuminggroups,timelymeettheneedsofconsumersandprovidebetterpriceperformanceoftheproductthattheCompanywillhavetheopportunitytowininthecompetition.
(2)TheCompany’sdevelopmentstrategyTheCompanywilladheretothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonlargesingleproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,followtheworkguidelineof“Stayingcommittedtothegoalswithoutwavering,remainingsteadfastinthedevelopmentdirection,maintainingrigorousmanagementwithoutslackening,andpersistingininnovationwithoutpause”,givefullplaytoownadvantages,andstrivetoachievevariousoperatingtargets.
(3)ManagementplanforthenewyearIn2026,theCompanywilltryitsbesttorealizeoperatingrevenueofnotlessthanCNY3billionandcontrolthemainoperatingcostsandthreeperiodexpensesbelowCNY2.7billion.
(4)MeasurestobeadoptedbytheCompanyInthenewyear,theCompanywillsystematicallycarryoutvarioustasksbyfocusingonthefouraspectsof“firmconfidentandnevergiveup,pushforwardthereformwithoutslackening,adheretotherightpathwhileinnovatingwithoutstopping,andholdthebottomlinewithoutwavering”.
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
First,theCompanywillfirmconfidentandnevergiveup.Althoughthecurrentwineindustryisinaperiodofdeepadjustment,challengesandopportunitycoexist,and“danger”and“chance”areintertwined.TheCompanywilldeeplyidentifythe“danger”and“chance”,seek“chance”in“danger”,andseize“chance”tocreatenewopportunities.Currently,wineconsumptionshowsatrendoflow-alcohol,youngerandhealthierconsumption.Asaleadingenterpriseintheindustry,theCompanyhasaprofoundaccumulationandinherentadvantagesinbrandheritage,productquality,andmarketinfluence.TheCompany’sactiveexplorationandphasedachievementsintheabove-mentioneddirectionslastyearfullyconfirmthefeasibilityofthisdevelopmentapproach.TheCompany’sexploratoryactivitiesandphasedachievementscarriedoutlastyearfullyconfirmedthefeasibilityofthisdevelopmentstrategy.In2026,theCompanywillcontinuetopromotethehigh-endtalentintroductionplan,selecttalentsinpractice,attracttalentsinsociety,buildaclassifiedandstratifiedreservecadrepoolandbuildamiddleandseniortalentechelon,sothattheteamalwaysmaintainsanenergeticcombateffectiveness.TheCompanywillpermeatethe“growthawareness”intoeverybusinesslink,implementitinthejobresponsibilitiesandworkactionsofeveryemployee,andmakethepursuitofself-transcendenceandexcellenceanintegralpartofthecorporateculture.Second,theCompanywillpushforwardthereformwithoutslackening.TheCompanywillsteadilyadvancethereformworkcoveringtheentireproduction,managementandsaleschains.Attheproductionend,itwillfurtheroptimizetheexistingproductionsystemandrepositiontheproductionfunctionsofeachsecondaryunit;graduallyoutsourcenon-coreandspecializedpositionssuchaspowerandfireprotectiontoqualifiedthird-partycompaniestoenhanceoperationalefficiency;onthebasisofadheringtoorder-drivenoperation,reducingthenumberofinternalwinevarietiesandoptimizingpackagingdesign,itwillenhanceflexibleproductioncapacity,fullyunleashproductioncapacityadvantagesandfurtherreduceproductioncosts.Atthemanagementend,itwillfurtherimprovethesystem,optimizetheoperationprocess,andimplementflatmanagementtomakeinternalcollaborationsmootherandexecutionmoreefficient;itwillstrictlycontrolvariousexpenses,andtheentirecompanywillpulltogethertolivea“tight”and“difficult”life.Atthesalesend,itwillsystematicallyreviewtheentiresalessystem,establishasalessystemthatismoresuitableforemergingfromthetrough,betteradaptingtothecurrentmarketenvironment,matchingmarketdemandsandprovidingconsumerswithmorevaluableservices.Itwillstrivetotransformthepressurebroughtbytheexternalenvironmentintothedrivingforceforinternaloptimization,andcreateanenterprisewith“highproductionefficiency,excellentmanagementprocess,stronginnovationability,andfastmarketresponse”.Third,theCompanywilladheretotherightpathwhileinnovatingwithoutstopping.TheCompanywillcontinuetoadheretotherightpathwhileinnovating.Theexistingmarketwillberevitalizedwiththeconceptof“oldtreesbearingnewbranches”,whiletheemergingmarketwillbebrokenthroughwiththeinnovativethinkingof“boldexplorationandexperimentation”.Thewineserieswillfocusonexpandingthe“whitewine”marketwhilemaintainingthe“redwine”market,securingthebasicmarketshareofredwineandexpandingitsmarket“width”.Atthesametime,itwillvigorouslyattackthewhitewinemarkettocultivatenewgrowthpoints,enablingthe“Longtailedcat”brandtograduallydominatethelow-endwhitewinebrands.Thebrandyserieswillconcentrateresourcesoncorecitiesandkeyregions,strivingtobreakthroughandproviding“fundamental”guaranteesforthegrowthofthebrandybusiness.Additionally,theCompanywill
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
continuouslyexplorenewproductcategoriessuchasfruitwine,non-alcoholwine,functionalwine,andflavoredbrandy.Itwillboldlyinnovateintermsofinternalwinequality,packagingdesignandcooperationmodels,andstrivetodevelopandcultivatenewproductstoseizemarketleadershippositionsandachievesalesscale.Inthetourismindustry,eachtourismunitwilldrawontheoperationexperienceofmuseumstodoagoodjobin“goingout”and“invitingin”,continuouslyimprovingservicequalityandtouristsatisfaction,andcontinuouslyenhancingthebrandinfluenceoftheCompany.Byintegratingthe“searchforrootsinChinesewine”and“winecitytour”,theinfluenceofChangyubrandwillbefurtherenhancedtomakegreatercontributionstotheCompany’sperformancegrowth.Fourth,theCompanywillholdthebottomlinewithoutwavering.Duringdifficulttimes,theCompanywilladheretoitsbottomline,proceedsteadily,andprepareforthe“winterseason”withacautiousmindset.Intermsofmanagementandassessment,itwillalwaysbeprofit-orientedandbasedoncashflow.TheCompanywillstrengthencostcontrolandimproverevenuequalitysimultaneously.Byoptimizingproductmix,strictlycontrollingunnecessaryexpendituresandpromotingcentralizedproductiontoreducecostsandincreaseefficiency,itwillensuretheachievementofprofittargets.TheCompanywillalsoenhancefundmanagementandtaxplanning,optimizethedebtstructureandpreventliquidityrisks.Itwillresolutelynotcrossthetworedlinesofproductionsafetyandqualitysafety,deeplypracticingthesafetyconceptof“treatingnothingassomething,treatingsmallmattersasmajormatters,andtreatingothers’mattersasourown”.Earnestlysafeguardthequalityofproducts,whichisthefoundationoftheenterprise;strengthenfinancialsupervisionofoverseasenterprises,continuouslyoptimizedebtstructureandequitystructure;imposeauditsupervisionandcontinuetoincreasetheintensityofflightauditstoensuretheCompany’sstableandlong-termdevelopment.
(5)Potentialrisks①RiskinpricefluctuationofrawmaterialsGrapesaretheCompany’smainrawmaterials.Thegrape’syieldandqualityareaffectedtoacertainextentbythenaturalfactorssuchasdrought,wind,rain,frostandsnow.TheseforcemajeurefactorsgreatlyinfluencethequantityandpriceofthegrapesinthisCompanyordersandaddtheuncertaintytotheCompany’sproductionandoperation.Therefore,theCompanywilllowertherisksthatarelikelytoaffectgrapequalityandresultinpricefluctuationbymeansofexpandingtheself-runvineyards,strengtheningthevineyardmanagementandoptimizingthelayoutofvineyards.②RiskinuncertaintyofmarketinputandoutputTocopewiththecutthroatmarketcompetitionandtomeettheneedsformarketdevelopment,theCompanyhasinputmoreandmorecapitalinthemarketandthesalesexpensehastakenupahigherpercentagepointinthebusinessrevenue.Theinput-outputratiowillaffecttheCompany’soperatingresultstoagreatextentandtheriskthatsomeinvestmentsmaynotreachtheexpectationsislikelytooccur.Therefore,theCompanywillstrengthenmarketresearchandanalysis,enhancemarketforecastaccuracyandcontinuetoperfecttheinput-outputevaluationsystemtoensuretheinvestmentsinmarkettobesatisfactoryasexpected.③Riskinproducttransport
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
TheCompany’sproductsarefragileandsenttodifferentplacesallovertheworld,mostlybysea,railwayandexpressway.Thepeakseasonofsalesisusuallyincoldwinterandclosetothespringfestivalwhenmarkethasagreatdemand.Atthattime,thenaturalandhumanfactorssuchasseriousshortageoftransportcapacityresultingfrombusyflowofpeopleandgoods,wind,snow,freezingaswellastrafficaccidentsmakethetransportdepartmentsdifficulttosendproductstomarketsintimeandsafely.Asaresult,itmakesthisCompanyhavetofacetherisksofmissingthepeakseasonofsales.Therefore,theCompanywilladoptallmethodspossiblelikemakingprecisesalespredictionandwelldesignedconnectionofproductionandsales,reasonablyarrangingproductionandtransportmeansandmakinguseofmoreavailablewarehousesindifferentplacestolowerthesekindsofrisks.④RiskininvestmentfaultsTheCompanyinvestedmanyprojectsinthepreviousperiodsandtheinvestmentamountswererelativelylarge.Forindividualproject,owingtotheinfluenceofvariousfactors,itledtohavetherisksoffacingwiththeinvestmentamountoutofbudgetorhardlytakingbacktheexpectedinvestmentearnings.TheCompanywilltakeanadequateargumentandscientificdecision-makingforinvestmentprojects,tryhardtoreduceandavoidinvestmentrisks.⑤RiskinexchangerateTheCompany’soverseassubsidiariesexportproductstomanydifferentcountriesandtheexportamountisrelativelylarge.Theremaybeexchangelossesorgainsduetoexchangeratefluctuation.⑥OtherrisksDuringtheproductionandsalesoftheCompany’sproducts,itmaybeaffectedbyforcemajeuresuchaswars,typhoons,earthquakes,etc..
12.Activityregistrationformforreceptionsofresearch,communication,visitandotheractivitiesduringthereportperiod?Applicable□Inapplicable
Receptiontime
| Receptiontime | Receptionplace | Receptionpattern | Typeofreceptionobject | Receptionobject | Maindiscussedcontentsandprovideddata | Basicsituationindexofreception |
| 2025.05.15 | InvestorRelationsInteractivePlatform（https://ir.p5w.net) | Networkplatformonlinecommunication | Institutions,individualsandothers | Allinvestors | TherecentproductionandoperationsituationoftheCompany | TheRecordofInvestor-relationsActivitydisclosedonShenzhenStockExchange |
| 2025.05.23 | Fieldresearch | Fieldresearch | Institutions,individualsandothers | Allinvestorsattendingtheon-sitemeetingoftheShareholders’Meeting | TherecentproductionandoperationsituationoftheCompany | TheRecordofInvestor-relationsActivitydisclosedonShenzhenStockExchange |
13.MarketvaluemanagementsystemandvaluationenhancementplanformulationandimplementationWhethertheCompanyhasestablishedamarketvaluemanagementsystem
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
?Yes?NoWhethertheCompanyhasdisclosedavaluationenhancementplan?Yes?NoFromFebruary10,2025toFebruary10,2026,theclosingpriceofChangyuBSharesoneachtradingdaywasconsistentlylowerthanthenetassetpershareattributabletotheCompany’scommonshareholdersasauditedinthemostrecentaccountingyear.OnFebruary12,2026,theCompanydisclosedaValuationEnhancementPlan,whichfocusesonaspectssuchasbusinessimprovement,mediumandlong-termincentivemechanism,cashdividends,investorrelationsmanagement,informationdisclosure,andsharerepurchasetoenhancetheinvestmentvalueoftheCompany’sBShareandtheshareholderreturncapacity,promotethereasonablereflectionoftheCompany’sinvestmentvaluebasedonitsquality,enhanceinvestorconfidence,safeguardtheinterestsofallshareholders,andpromotethehigh-qualitydevelopmentoftheCompany.
14.Implementationofthe“TheImprovementBothonQualityandReturn”actionplanWhetherthecompanydisclosedthe“TheImprovementBothonQualityandReturn”actionplan
□Yes?No
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
IV.CorporateGovernance,EnvironmentalandSocialResponsibility
1.CurrentCorporateGovernanceSituationoftheCompany
(1)Aboutshareholdersandshareholders’meetingTheCompanyhassetuptheDeliberationRulesofShareholders’Meeting,andconvenedtheshareholders’meetingsinstrictaccordancewithrequirementsofstandardopinionsofshareholders’meeting,madethegreatefforttoprovideconvenientconditionsformoreshareholderstoparticipatetheshareholders’meeting,andensuredallshareholderstoenjoysameequityandwellexercisedtheirrights.TheCompanydrewgreatattentiontothecommunicationandexchangewithshareholders,activelyrespondedtheshareholders’inquiryandquestions,andwidelylistenedtothesuggestionsandcommentsfromshareholders.
(2)AbouttheCompanyandholdingshareholderTheCompanyhasindependentbusinessandself-managementcapacity,whichisindependentfromthecontrollingshareholdersinbusiness,staffs,assets,institutionsandfinance.TheBoardofDirectors,BoardofSupervisors,managementteamsandalsointernalinstitutionsareabletooperateindependentlyintheCompany.ThecontrollingshareholdersoftheCompanycouldregulatetheirbehaviorswithoutdirectlyorindirectlyinterferingintheCompany’sdecision-makingandbusinessactivitiesbeyondtheshareholder’smeeting;meanwhile,thereisnocaseofencroachingontheCompany’sassetsanddamagingtheinterestoftheCompanyandminorityshareholders.
(3)AboutthedirectorandboardofdirectorsTheCompanystrictlyappointsalldirectorsinlightofCorporationActandArticlesofAssociations.Thequalificationsofalldirectorsareinlinewiththerequirementsoflawsandregulations.InaccordancewiththerequirementsofCorporateGovernanceGuidelines,theCompanyhascarriedoutthecumulativevotingsysteminthedirectorselection.Atpresent,theCompanyhasfiveindependentdirectorsaccountingforaboveonethirdofalldirectors,andthenumberandpersonnelcompositionofboardofdirectorswasbasicallyinaccordwithrequirementsofregulationsaswellasArticlesofAssociations.AlldirectorsoftheCompanywereabletocarryoutworkinaccordancewiththeRulesofBoardofDirectors’ProcedureandWorkingRulesforIndependentDirectors,punctuallyattendedtheboardofdirectors’andshareholders’meetings,activelytookpartinrelevantknowledgetraining,werefamiliarwiththelawsandregulationsconcerned,hadadeepknowledgeandlongexperienceofpractitioners,andperformedtheirdutiesaccordingtothelawandregulations.TheBoardofDirectorsconvenedthemeetingscomplieswithrelevantlawsandregulations.
(4)AboutperformanceevaluationandincentivesystemTheappointmentofmanagerswasopenandtransparent,andaccordedwithlawsandregulations.TheCompanyhasestablishedandgraduallyimprovedtheperformanceevaluationstandardandformedefficientincentivesystem,soastoensurethesalaryofstafftobelinkedwithworkperformance.
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
(5)AboutinterestedpartiesTheCompanycouldfullyrespectandsafeguardthelegalrightsofthepartywithrelevantbenefit,cooperateactivelywiththeinterestedparties,jointlydrivetheCompanytodevelopcontinuallyandstably,paygreatattentiontotheissuessuchaslocalenvironmentalprotectionandpublicutilitiesetc.,andfullyassumetheduesocialresponsibility.
(6)AbouttheinformationdisclosureandtransparencyTheCompanyhasappointedtheboardsecretarytoberesponsibleastheheadofinvestorrelationmanagementincludinginformationdisclosure,investorrelationsmanagementandreceptionofshareholders’visitandconsultation.TheCompanyhasalsoassignedChinaSecuritiesNewspaper,SecuritiesTimes,HonkongCommercialDailyandwebsitehttp://www.cninfo.com.cn/todiscloseinformation,punctually,accuratelyandtrulydisclosedanyinformationinthelightofrequirementofrelevantlawsandrules,andalsoensuredallshareholderstohavesameopportunitytoacquireanyinformation.InordertofurtherperfecttheCompany’sgovernancesystem,duringthereportperiod,theCompanyformulatedOpinionsonStrengtheningtheManagementofFoodSafetyatProductionSitesandProvisionsonImplementingtheSupervisionandManagementofFoodSafetyMainBodyResponsibility,revisedandimprovedseveralrulesandregulationssuchasMeasuresfortheAdministrationofLaborContracts.WhetherornotthereissignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandlaws,administrativeregulationsandtheregulationsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
□Yes?NoThereisnosignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandlaws,administrativeregulationsandtheregulationsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
2.Relativetothecontrollingshareholderandactualcontroller,independenceoftheCompanyonensuringthecompany’sassets,personnel,finance,organization,business,etc.
(1)PersonnelArrangementTheCompany’sgeneralmanager,deputygeneralmanagersandotherseniorofficers,allofwhomwerepaidbytheCompanyanddidnotholdanyconcurrentadministrativeranksinthecontrollingunits.TheCompanywasentirelyindependentinpersonnelarrangement,conclusionandadjustmentoflaborcontractsthankstoitssoundandindependentsystemforlabor,personalandsalarymanagement.
(2)AssetsTangibleassetsandIntangibleassetsincludingtrademark,industrialpropertyrightandnon-patenttechnologieswereallclearlydividedbetweentheCompanyandthecontrollingshareholders,andalllegalformalitieswerecompleted.Asanindependentlegalentity,theCompanyoperatesindependentlyinaccordancewiththelaw,anddoesnotprovideanyformofguaranteewithitsassetsforshareholders’orindividuals’liabilitiesorotherlegalornaturalpersons.Duetothehistoricalissues,theownershipoftrademarkssuchas“张裕”(Changyu)thattheCompanyis
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
permittedtousethatarestillremainedwiththecontrollingshareholder.Exceptforaverysmallnumberoftrademarkssuchas“张裕”(Changyu),theCompanyhasownershiprightsofthevastmajorityoftrademarksbeingusedbytheCompany,whichensurestheindependenceandcompletenessoftheCompany’sassets.
(3)FinanceTheCompanyisequippedwithindependentfinancedepartment,financialadministratorandfinancialandaccountingstaff,aswellasacomplete,independentandstandardizedfinancialaccountingsystem.TheCompanyalsoopeneditsownbankaccounts,independentandlegallypayingtaxesandworkersinsurancefund.Allfinancialindividualsdonotholdanyconcurrentpostsinassociatedcompaniesandareabletomakefinancialdecisionsindependently.TheCompanyhasitsownauditdepartment,whichisespeciallyresponsiblefortheinternalauditworkoftheCompany.
(4)IndependentInstitutionsTheCompanyhassetupasoundorganizationalframework,inwhichtheBoardofDirectorsandBoardofSupervisorsoperateindependently,nosuperiorandsubordinaterelationshipexistsbetweenthefunctionaldepartmentsofthecontrollingshareholder.TheCompanyhasitsownindependentproduction&businessoffices,andallfunctionaldepartmentsareindependenttoexercisetheirpowersandcarryouttheproductionandbusinessactivitiesindependently.
(5)OperationsTheoperationsoftheCompanyareindependentofthecontrollingshareholders.TheCompanyownsitselfcompletelyindependentsystemscoveringresearchanddevelopment,financialaccounting,laborandhumanresource,qualitycontrol,rawmaterialspurchase,productionandsales,hastheindependentmanagementability,anddoesnothavetheproblemthatentruststhecontrollingshareholderstobuyandselloncommission,norexistthehorizontalcompetitionwithcontrollingshareholders.
3.SituationforHorizontalCompetition□Applicable?Inapplicable
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
4.SituationforDirectorsandSeniorExecutives
(1)Basicsituation
Name
| Name | Gender | Age | Post | Status | Beginningdateoftenure | Endingdateoftenure | Sharesheldatthebeginningoftheperiod(share) | Increasedsharesduringtheperiod(share) | Decreasedsharesduringtheperiod(share) | Otherchangesofsharesheld(share) | Sharesheldattheendoftheperiod(share) | Reasonsoftheincreaseanddecreasechangeofsharesheld |
| HongjiangZHOU | M | 61 | Chairman | Incumbent | 2002.05.20 | 2028.05.24 | 279,600 | 72,000 | 207,600 | RestrictedsharerepurchasedbytheCompany | ||
| JianSUN | M | 59 | Director | Incumbent | 2019.05.17 | 2028.05.24 | 360,000 | 63,000 | 297,000 | RestrictedsharerepurchasedbytheCompany | ||
| JimingLI | M | 59 | Director | Incumbent | 2019.05.17 | 2028.05.24 | 160,000 | 48,000 | 112,000 | RestrictedsharerepurchasedbytheCompany | ||
| XunzhangLIU | M | 52 | Director | Outgoing | 2024.03.11 | 2025.05.23 | 0 | |||||
| MarcoGiovanniFerrari | M | 52 | Director | Incumbent | 2024.10.01 | 2028.05.24 | 0 | |||||
| JianxunJIANG | M | 59 | Director | Incumbent | 2022.05.27 | 2028.05.24 | 160,000 | 48,000 | 112,000 | RestrictedsharerepurchasedbytheCompany | ||
| JinfengREN | M | 53 | Director | Incumbent | 2025.05.23 | 2028.05.24 | 0 | |||||
| StefanoBattioni | M | 67 | Director | Outgoing | 2022.05.27 | 2025.05.23 | 0 | |||||
| EnricoSivieri | M | 57 | Director | Outgoing | 2019.05.17 | 2025.05.23 | 0 | |||||
| YunCHIANG | F | 58 | Director | Incumbent | 2020.06.19 | 2028.05.24 | 0 | |||||
| ClaudioMicheled’Agostino | M | 55 | Director | Incumbent | 2025.05.23 | 2028.05.24 | ||||||
| SamaraOrsatti | F | 50 | Director | Incumbent | 2025.05.23 | 2028.05.24 | 0 |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
ChangqingDUAN
| ChangqingDUAN | M | 61 | Independentdirector | Outgoing | 2019.05.17 | 2025.05.23 | 0 | |||||
| HuirongLIU | F | 62 | Independentdirector | Outgoing | 2019.05.17 | 2025.05.23 | 0 | |||||
| QinglinLIU | M | 62 | Independentdirector | Outgoing | 2019.07.02 | 2025.05.23 | 0 | |||||
| RenzhuYU | M | 47 | Independentdirector | Incumbent | 2020.05.27 | 2028.05.24 | 0 | |||||
| ZhuquanWANG | M | 60 | Independentdirector | Incumbent | 2020.05.27 | 2028.05.24 | 0 | |||||
| YanXU | M | 63 | Independentdirector | Incumbent | 2025.05.23 | 2028.05.24 | 0 | |||||
| JianluanGUO | M | 63 | Independentdirector | Incumbent | 2025.05.23 | 2028.05.24 | 0 | |||||
| XinSU | F | 57 | Independentdirector | Incumbent | 2025.05.23 | 2028.05.24 | 0 | |||||
| BinLENG | M | 63 | ChairmanoftheBoardofSupervisors | Outgoing | 2020.05.27 | 2025.09.16 | 0 | |||||
| ZhijunLIU | M | 45 | Supervisor | Outgoing | 2016.05.26 | 2025.09.16 | 0 | |||||
| JinfengYU | F | 35 | Supervisor | Outgoing | 2024.05.05 | 2025.09.16 | 0 | |||||
| JianSUN | M | 59 | Generalmanager | Incumbent | 2018.01.10 | 2028.06.10 | 0 | |||||
| JimingLI | M | 59 | Deputygeneralmanager | Incumbent | 2019.05.28 | 2028.06.10 | 0 | |||||
| HuaJIANG | M | 62 | Deputygeneralmanager | Outgoing | 2001.09.14 | 2025.06.09 | 170,000 | 48,000 | 48,000 | 74,000 | ReductionofstocksinthesecondarymarketandrestrictedsharerepurchasedbytheCompany | |
| BinPENG | M | 59 | Deputygeneralmanager | Incumbent | 2018.01.10 | 2028.06.10 | 160,000 | 24,100 | 48,000 | 87,900 | ReductionofstocksinthesecondarymarketandrestrictedsharerepurchasedbytheCompany | |
| JianxunJIANG | M | 59 | Deputygeneral | Incumbent | 2019.05.28 | 2028.06.10 | 0 |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
managerandBoardsecretary
| managerandBoardsecretary | ||||||||||||
| JianfuPAN | M | 50 | Generalmanagerassistant | Incumbent | 2018.04.19 | 2028.06.10 | 70,000 | 30,000 | 40,000 | RestrictedsharerepurchasedbytheCompany | ||
| QingkunKONG | M | 53 | Generalmanagerassistant | Incumbent | 2022.06.09 | 2028.06.10 | 75,000 | 30,000 | 45,000 | RestrictedsharerepurchasedbytheCompany | ||
| ShiluLIU | M | 51 | Generalmanagerassistant | Incumbent | 2018.04.19 | 2028.06.10 | 70,000 | 60,000 | 40,000 | RestrictedsharerepurchasedbytheCompany | ||
| ZhenboXIAO | M | 49 | Generalmanagerassistant | Incumbent | 2018.04.19 | 2026.03.09 | 75,000 | 30,000 | 45,000 | RestrictedsharerepurchasedbytheCompany | ||
| HongboSUN | M | 43 | Generalmanagerassistant | Incumbent | 2025.06.09 | 2028.06.10 | 25,182 | 10,793 | 14,389 | RestrictedsharerepurchasedbytheCompany | ||
| CuimeiGUO | F | 52 | Generalmanagerassistant | Incumbent | 2025.06.09 | 2028.06.10 | 41,090 | 12,327 | 12,327 | 16,436 | ReductionofstocksinthesecondarymarketandrestrictedsharerepurchasedbytheCompany | |
| Total | -- | -- | -- | -- | -- | -- | 1,645,872 | 0 | 84,427 | 512,447 | 1,091,325 | -- |
Isthereanyresignationofdirectorsandseniorexecutivesduringtheirtermofofficeduringthereportingperiod?Yes?NoChangesofdirectorsandseniorexecutivesoftheCompany?Applicable?Inapplicable
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
(2)SituationforworkexperienceTheprofessionalbackground,mainworkexperiencesandpresentpositionsoftheCompany’sdirectorsandseniorexecutives①MembersofBoardofDirectorsMr.HongjiangZhou,male,61yearsold,Chinese,withdoctoraldegree,seniorengineer,usedtobetheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd.,theDeputyGeneralManager,theGeneralManagerandtheDeputyChairmanofYantaiChangyuPioneerWineCo.,Ltd..HeisincumbentastheChairmanofYantaiChangyuGroupCo.,Ltd.andtheboarddirectorandtheChairmanoftheCompanynow.Mr.JianSun,male,59yearsold,Chinese,MBA,usedtobetheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectorandtheGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectorofYantaiChangyuGroupCo.,Ltd..Mr.JimingLi,male,59yearsold,Chinese,withdoctoraldegree,applicationresearcher,usedtobetheChiefEngineeroftheCompany.HeisincumbentastheboarddirectorandtheDeputyGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectorofYantaiChangyuGroupCo.,Ltd..Mr.JianxunJiang,male,59yearsold,Chinese,MBAandaccountant,servedastheFinancialManageroftheCompanyfromMay20,2002toJanuary10,2018.Henowservesastheboarddirector,DeputyGeneralManagerandBoardSecretaryoftheCompany.Mr.JinfengRen,male,53yearsold,Chinese,bachelordegree;FromJuly1995toMay2020,hesuccessivelyservedasstaffofheadcompanydirectlyundertheManagementCommitteeofYantaiFreeTradeZone,theprojectdirector,deputyminister,minister,memberofthePartyLeadershipGroupanddeputydirectorofYantaiInvestmentPromotionBureau,memberofthePartyanddeputydirectorofYantaiInvestmentPromotionCenter.SinceMay2020,hehasbeenservedasamemberofthePartyCommitteeandtheDeputyGeneralManagerofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.andtheboarddirectorofChangyuGroupCo.,Ltd.andtheCompany.Mr.MarcoGiovanniFerrari,male,52yearsold,Italian,laureadegree.HehassuccessivelyservedasmarketingassistantofBacardi-MartiniItalyandMartini&RossiS.p.A.(Torino,Italy),brandmanagerofBacardi-MartiniUK(Southampton,UK),marketingmanagerofBacardi-MartiniItaly(Torino,Italy),globalmarketingmanagerBacardiRumofBacardiLimited(London,UK),directorofstrategicdevelopment,marketingandtrademarketingofBrancaInternational(Milano,Italy),globalchiefmarketingofficerandregionaldirectorNorthAmericaofStoliGroup(partofSPIGroupS.A.R.L.)(Luxembourg),andCEOandexecutiveboardmemberofGruppoMontenegro(Bologna,Italy).HecurrentlyservesasCEOandexecutiveboardmemberofIllvaSaornnoHolding(Saronno,Italy),memberoftheBoardofFedervini(ItalianFederationofSpiritsandWineManufacturers),memberoftheBoardofGovernorsandvice-chairofBritishSchoolofMilan,anddirectorofYantaiChangyuGroupCo.,Ltd.andtheCompany.Mr.ClaudioMicheled’Agostino,male,55yearsold,Italian,bachelordegree;SinceSeptember1996,hehassuccessivelyservedasthelawyerofPaviaeAnsaldo(ShanghaiOffice),thelawyerofBeALaw(ShanghaiOffice)andthelawyerofDLAPiperUKLLP(ShanghaiOffice).HeiscurrentlythelawyerofDLAPiperItaly(MilanOffice).Ms.SamaraOrsatti,female,50yearsold,Italian,bachelordegree;FromJanuary2001toJune2023,shehassuccessivelyservedasthecashmanager/riskcontrollerofNESTL?GROUP-NESTL?FINANZIARIAITALIASPA,thegroupinternationalauditorofNESTL?GROUP-
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
NESTL?SA,thegroupauditmanagerofBULGARISPA,thegroupauditmanagerofSORINGROUP-SORINSPA,theheadoffinancial,industrialandcommercialcontrollingofLIVANOVAGROUP-ELAMEDICALSAS,theheadoffinancialandbusinesscontrollingofAMGENITALIASPA,thecountryheaddryeye&ocularhealthandthecountrychieffinancialofficerofALCONITALIASPAandtheCFOinternationalofALFASIGMASPA.SinceJuly2023,sheservesastheheadoffinancegrowthmarketsofALFASIGMASPA.Ms.YunChiang,female,58yearsold,successivelyobtainedBachelorofSciencedegreeMagnaCumLaudefromVirginiaTech,Virginia,EMBAofTheKelloggSchoolofManagementatNorthWesternUniversity,USAandEMBAofTheGraduateSchoolofManagement,HongKongUniversityofScienceandTechnology,HongKong,China.SheusedtoactedasDirectoratAmericanInternationalGroup(AIG)directinvestmentteam,theManagingPartnerofPacificAllianceGroup(PAG).ShecurrentlyservesastheINED,memberofAuditCommitteeandNominationCommitteeandChairladyofESGCommitteeinLasVegasSandsChina,theINED,memberofAuditCommitteeandRemunerationsCommitteeandChairladyofNominationCommitteeandESGCommitteeinGoodbabyInternationalHoldingLtd.,theINED,memberofAuditCommitteeandNominationCommitteeandChairladyofRemunerationsCommitteeinPacificCenturyPremiumDevelopmentsLtd.,theCEOandFoundingPartnerofProspereCapital,andtheboarddirectoroftheGroupCompanyandtheCompany.Mr.RenzhuYu,male,47,Chinese,doctorofmanagement,high-leveltalentsofJinan,usedtoactastheDeputyDirectorofHuanglongNationalScenicAreaAdministrationinAbaprefectureofSichuanprovinceasamemberofthe18thdoctoralteamoftheCentralOrganizationDepartmentandtheCommunistYouthLeagueofChinaandalsoeveractedasmanagingdirectorofShandongAgriculturalEconomySociety.Currently,heservesasaprofessorandamastersupervisorinSchoolofBusinessAdministrationinShandongUniversityofFinanceandEconomics,themanagingdirectorofChineseMarketingAssociationofUniversitiesandanindependentdirectorofthisCompany.Mr.ZhuquanWang,male,60yearsold,Chinese,doctorofmanagement(accountancy),nationalhigh-leveltalent,firstbatchofnationalaccountingacademicleadingpersonalsoftheMinistryofFinance,theaccountantmasterofheMinistryofFinance,nationaloutstandingteacher,GovernmentSpecialAllowanceexpertundertheStateCouncil.HeusedtoservedasindependentdirectorofthisCompanyfromMay13,2010toMay12,2013andfromMay23,2014toMay17,2019.NowheistheprofessorandthedoctoralsupervisorsoftheOceanUniversityofChinaandalsoholdsaconcurrentpostofindependentdirectoroftheCompanyandQingdaoZhongchengGroupCo.,Ltd..Mr.YanXu,male,63,Chinese,doctoraldegree.HeiscurrentlytheDirectoroftheKeyLaboratoryofIndustrialBiotechnology,MinistryofEducation,JiangnanUniversity,theDirectoroftheBrewingMicrobiologyandAppliedEnzymologyLaboratoryofJiangnanUniversity,thePrincipalInvestigator(PI)ofNationalKeyLaboratoryofFoodScienceandResourceMining,thedeputydirectoroftheBaijiuTechnologyCommitteeoftheChinaAlcoholicDrinksAssociation,thedeputydirectoroftheBaijiuExpertCommitteeofChinaNationalFoodIndustryAssociation,thefellowoftheDepartmentofAgriculturalandFoodChemistryoftheAmericanChemicalSociety(ACS)andthechiefscientistofthenationaldoubletopsconstruction“LightIndustryEngineeringandTechnology”discipline.Hehaspublishedmorethan200academicarticlesinternationally,andisahighlycitedscholarintheglobalfield.Hismainresearchinterestsarebrewingmicrobiologyandindustrialenzymologyinthefieldofmicrobialfermentationengineering.Heusedtoserveas
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
theindependentdirectorofseverallistedcompanies,andcurrentlyservesastheindependentdirectoroftwolistedcompanies-KouzijiaoandWayzim.Mr.JianluanGuo,male,63,Chinese,doctoraldegree.HeiscurrentlyaprofessoranddoctoralsupervisorofBusinessSchoolofCentralUniversityofFinanceandEconomics,thedirectorofCommercialBankManagementResearchInstituteCentralUniversityofFinanceandEconomics,theindependentdirectorofTianjinTrustCo.,Ltd.,andtheindependentdirectorofHebeiHappyConsumerFinanceCo.,Ltd.Hehasworkedinmanufacturingenterprises,researchinstitutions,commercialbanksandinvestmentcompaniesfornearly20years.Heismainlyengagedinteaching,researchandsocialservicesinstrategicmanagement,corporategovernance,performancepay,internalriskcontrol,corporatemergersandacquisitions,financialmarketsandotherfields.Ms.XinSu,female,57,doctoraldegree.SheiscurrentlythethedirectorofResearchCenterofGovernmentPerformanceEvaluationinShandongUniversityofFinanceandEconomics,second-levelprofessoranddoctoralsupervisor.SheisanexpertwhoenjoysthespecialgovernmentallowanceoftheStateCouncil,ayoungandmiddle-agedexpertwhohasmadeoutstandingcontributionstoShandongProvince,andahigh-endtalentexpertofShandongThinktankAlliance.Shehaslongbeenengagedinresearchoneconomicmanagement,organizationalinnovation,performanceevaluationandotherrelatedissues.Sheusedtoserveastheindependentdirectoroflistedcompany,andcurrentlyservesasanoutsidedirectorofHualuGroup.②OtherseniorexecutivesMr.BinPeng,male,59yearsold,MBA,seniorengineer,eversuccessivelyservedastheDepartmentChiefofTechnicalTransformationDepartmentandtheMinisterofInvestmentandDevelopmentDepartmentoftheCompany,aswellastheGeneralManagerAssistantofYantaiChangyuGroupCo.,Ltd..HecurrentlyservesastheDeputyGeneralManageroftheCompany.Mr.JianfuPan,male,50yearsold,Chinese,MBAandsenioreconomist,usedtoserveastheGeneralManageroftheJiangxiBranchoftheCompany,theGeneralManageroftheShanghaimarketingmanagementcompanyandtheGeneralManagerofBeijingmarketingmanagementcenter.Currently,heisaGeneralManagerAssistantoftheCompany.Mr.QingkunKong,male,53yearsold,Chinese,MBAandeconomist,usedtoserveasasectionmemberofproductiondepartmentinthehealthyliquorbranchoffice,aclerkandtheDeputyDirectorandtheDirectorofgeneralmanageroffice,andthechairmanoftheCompany’sBoardofSupervisor.Currently,heservesasaGeneralManagerAssistantoftheCompany.Mr.ShiluLiu,male,51yearsold,Chinese,masterdegree,usedtobetheManagerofTianjinbranchoftheCompany,theCompetenceManagerofNorthChinamarket,theGeneralMangerofBeijingmarketingmanagementcompany,theGeneralManagerofGuangdongmarketingmanagementcenterandtheGeneralManagerofe-commercebranchoftheCompany.Currently,heservesastheGeneralManagerAssistanceoftheCompanyandtheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd..Mr.ZhenboXiao,male,49yearsold,Chinese,MBA,servedastheDeputyManageroftheCompany’smarketstrategydevelopmentcenter,theGeneralManagerofShandongmarketingmanagementcompanyandYantaiChangyuliquorcompany.HecurrentlyservesastheGeneralManagerAssistantoftheCompany.Mr.HongboSun,male,43yearsold,Chinese,masterdegree,usedtoservedastheManagerofMarketingDepartment,theExecutiveDeputyManagerandGeneralManageroftheE-commerceCompanyoftheCompany.HecurrentlyservesastheGeneralManagerAssistantoftheCompany,
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
theGeneralManageroftheOnlineSalesBusinessDivisionandtheGeneralManageroftheE-commerceCompany.Ms.CuimeiGuo,female,52yearsold,Chinese,masterdegree,senioraccountant,CertifiedPublicAccountantofChina,InternationalCertifiedInternalAuditor,ahigh-endaccountingtalentinShandongProvince,usedtoservedasanauditorintheAuditDepartmentoftheCompany,theMinisterAssistantandDeputyMinisteroftheFinanceDepartment.ShecurrentlyservesastheGeneralManagerAssistantoftheCompany,theMinisterofFinanceDepartmentandtheDeputyDirectoroftheOverseasEnterpriseManagementOfficeoftheCompany.ThesituationwherethecontrollingshareholderandtheactualcontrollerconcurrentlyholdthepositionsoftheChairmanandtheGeneralManagerofthelistedcompany?Applicable□InapplicableMr.HongjiangZhoualsoholdsconcurrentpostastheChairmanofthecontrollingshareholder,YantaiChangyuGroupCo.,Ltd..Postintheshareholder’scompany?Applicable□Inapplicable
Name
| Name | Shareholder’sCompany | Post | Beginningdateofthepost | Endingdateofthepost | Paidbyshareholder’scompanyornot |
| HongjiangZHOU | YantaiChangyuGroupCo.,Ltd. | Chairman | 2018.01.10 | 2029.02.06 | No |
| JianSUN | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2029.02.06 | No |
| JimingLI | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2029.02.06 | No |
| JinfengREN | YantaiChangyuGroupCo.,Ltd. | Director | 2025.05.15 | 2029.02.06 | No |
| MarcoGiovanniFerrari | YantaiChangyuGroupCo.,Ltd. | Director | 2024.09.02 | 2029.02.06 | No |
| ClaudioMicheled’Agostino | YantaiChangyuGroupCo.,Ltd. | Director | 2025.05.15 | 2029.02.06 | No |
| SamaraOrsatti | YantaiChangyuGroupCo.,Ltd. | Director | 2025.05.15 | 2029.02.06 | No |
| YunCHIANG | YantaiChangyuGroupCo.,Ltd. | Director | 2020.05.12 | 2029.02.06 | No |
| Explanationforthepostintheshareholder’scompany | none | ||||
Postatothercompanies
□Applicable?InapplicableDisciplinaryactionstakenbysecuritiesregulatorsinrecent3yearstotheCompany’sdirectors,supervisorsandseniormanagementbothonthejobandleftduringthereportperiod
□Applicable?Inapplicable
(3)SalaryofdirectorsandseniorexecutivesThesituationofdecision-makingprocess,thebasisofdeterminationandtheactualpaymentofremunerationfordirectorsandseniorexecutives
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
TheannualallowancefortheindependentdirectorsofthecompanyisCNY100,000,whichhasbeenpaidinonelumpsumwithintheyear.ThesalariesofotherdirectorsandseniorexecutivesaredeterminedbasedontheassessmentresultsoftheCompensationPerformanceDesign(2025-2027)forSeniorExecutivesoftheCompany.ThisdesignhasbeenapprovedbytheCompany’sboardofdirectors.The2025performanceassessmentresultsoftheCompany’sseniorexecutiveshavebeenapprovedbytheCompany’sboardofdirectors.OtherdirectorsandseniorexecutivesoftheCompanyhavereceivedpartialsalariesonamonthlybasis,andtheremainingpartwillbepaidin2026basedontheassessmentresults.Salaryofdirectors,supervisorsandseniorexecutivesduringthereportperiod
Unit:CNY’0000
Name
| Name | Gender | Age | Post | Status | TotalrewardfromtheCompanybeforetax | WhethergetrewardfromrelatedpartiesoftheCompany |
| HongjiangZHOU | M | 61 | Chairman | Incumbent | 98.88 | No |
| JianSUN | M | 59 | DirectorandGeneralManager | Incumbent | 90.69 | No |
| JimingLI | M | 59 | DirectorandDeputyGeneralManager | Incumbent | 70.22 | No |
| JianxunJIANG | M | 59 | Director,DeputyGeneralManagerandBoardsecretary | Incumbent | 70.22 | No |
| JinfengREN | M | 53 | Director | Incumbent | 0 | Yes |
| MarcoGiovanniFerrari | M | 52 | Director | Incumbent | 0 | Yes |
| StefanoBattioni | M | 67 | Director | Outgoing | 0 | Yes |
| EnricoSivieri | M | 57 | Director | Outgoing | 0 | Yes |
| YunCHIANG | F | 58 | Director | Incumbent | 0 | Yes |
| ClaudioMicheled’Agostino | M | 55 | Director | Incumbent | 0 | Yes |
| SamaraOrsatti | F | 50 | Director | Incumbent | 0 | Yes |
| ChangqingDUAN | M | 61 | IndependentDirector | Outgoing | 4.17 | No |
| HuirongLIU | F | 62 | IndependentDirector | Outgoing | 4.17 | No |
| QinglinLIU | M | 62 | IndependentDirector | Outgoing | 4.17 | No |
| RenzhuYU | M | 47 | IndependentDirector | Incumbent | 10 | No |
| ZhuquanWANG | M | 60 | IndependentDirector | Incumbent | 10 | No |
| YanXU | M | 63 | IndependentDirector | Incumbent | 6.03 | No |
| JianluanGUO | M | 63 | IndependentDirector | Incumbent | 6.03 | No |
| XinSU | F | 57 | IndependentDirector | Incumbent | 6.03 | No |
| HuaJIANG | M | 62 | DeputyGeneralManager | Outgoing | 28.86 | No |
| BinPENG | M | 59 | DeputyGeneralManager | Incumbent | 70.22 | No |
| JianfuPAN | M | 50 | GeneralManagerAssistant | Incumbent | 49.74 | No |
| QingkunKONG | M | 53 | GeneralManagerAssistant | Incumbent | 49.74 | No |
| ShiluLIU | M | 51 | GeneralManagerAssistant | Incumbent | 47.97 | No |
| ZhenboXIAO | M | 49 | GeneralManagerAssistant | Incumbent | 49.74 | No |
| HongboSUN | M | 43 | Generalmanagerassistant | Incumbent | 13.55 | No |
| CuimeiGUO | F | 52 | Generalmanagerassistant | Incumbent | 27.53 | No |
| Total | -- | -- | -- | -- | 717.96 | -- |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Theassessmentbasisfortheactualcompensationreceivedbyalldirectorsandseniorexecutivesattheendofthereportingperiod
| Theassessmentbasisfortheactualcompensationreceivedbyalldirectorsandseniorexecutivesattheendofthereportingperiod | CompensationPerformanceDesign(2025-2027)forSeniorExecutives |
| Theassessmentcompletionstatusoftheactualcompensationreceivedbyalldirectorsandseniorexecutivesattheendofthereportingperiod | FailedtoachievetheCompany’smainperformanceindicatorsfor2025thatweresetatthebeginningoftheyear. |
| Thedeferredpaymentarrangementsfortheactualcompensationreceivedbyalldirectorsandseniorexecutivesattheendofthereportingperiod | No |
| Thesituationofactualsalarypaymentsandrecoveryrightsforalldirectorsandseniorexecutivesattheendofthereportingperiod | No |
Otherinformationnote□Applicable?Inapplicable
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
5.Performanceofdirectorsduringthereportperiod
(1)Attendanceofdirectorsfortheboardofdirectors’andtheshareholders’meetings
Attendanceofdirectorsfortheboardofdirectors
| Attendanceofdirectorsfortheboardofdirectors | |||||||
| Name | Requiredattendancetime | On-siteattendance | Communicationattendance | Authorizedattendance | Absence | Whetherornottoattendthemeetingspersonallyforsuccessivetwice | Attendancetimefortheshareholders’meeting |
| HongjiangZHOU | 7 | 2 | 5 | 0 | 0 | No | 4 |
| JianSUN | 7 | 2 | 5 | 0 | 0 | No | 1 |
| JimingLI | 7 | 2 | 5 | 0 | 0 | No | 1 |
| JianxunJIANG | 7 | 2 | 5 | 0 | 0 | No | 4 |
| XunzhangLIU | 2 | 0 | 1 | 1 | 0 | No | 0 |
| MarcoGiovanniFerrari | 7 | 2 | 5 | 0 | 0 | No | 0 |
| StefanoBattioni | 2 | 0 | 1 | 1 | 0 | No | 0 |
| EnricoSivieri | 2 | 0 | 1 | 1 | 0 | No | 0 |
| YunCHIANG | 7 | 2 | 5 | 0 | 0 | No | 0 |
| ChangqingDUAN | 2 | 1 | 1 | 0 | 0 | No | 0 |
| HuirongLIU | 2 | 0 | 1 | 1 | 0 | No | 0 |
| QinglinLIU | 2 | 1 | 1 | 0 | 0 | No | 0 |
| RenzhuYU | 7 | 2 | 5 | 0 | 0 | No | 0 |
| ZhuquanWANG | 7 | 2 | 5 | 0 | 0 | No | 0 |
| JinfengREN | 5 | 1 | 4 | 0 | 0 | No | 1 |
| ClaudioMicheled’Agostino | 5 | 1 | 4 | 0 | 0 | No | 0 |
| SamaraOrsatti | 5 | 1 | 4 | 0 | 0 | No | 0 |
| JianluanGUO | 5 | 1 | 4 | 0 | 0 | No | 1 |
| YanXU | 5 | 1 | 4 | 0 | 0 | No | 0 |
| XinSU | 5 | 1 | 4 | 0 | 0 | No | 1 |
ExplanationforfailedtopersonallyattendtheBoardofDirectors’meetingsforsuccessivetwotimes
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
No
(2)AnyobjectionsfortheCompany’sprojectsfromthedirectorsWhetherornotthedirectorsraisedanyobjectionfortheCompany’sprojects
□Yes?NoDuringthereportperiod,thedirectorsdidnotraiseanyobjectionsfortheCompany’sprojects.
(3)Otherexplanationsondirectors’performanceWhetherornotthedirectors’propositionsareacceptedbytheCompany?Yes?NoTheexplantiononthedirectors’propositionsareacceptedorarenotacceptedbytheCompanySomeoftheCompany’sdirectorshaveproposedthatgreaterattentionshouldbepaidtotheuniquerolesofnewmediaandemergingchannelsinbrandpromotionandproductsales;effortsshouldbeacceleratedtodeveloplow-alcoholproductstomeettheneedsofdifferentconsumergroups.
6.PerformanceofthespecialcommitteesundertheBoardofDirectorsduringthereportperiod
Committeesname
| Committeesname | Members | Numbersofmeetingheld | Helddate | Meetingcontents | Importantcommentsandsuggestionsmade | Otherperformanceofduties | Specificcircumstancesoftheobjection(ifhave) |
| TheFirstAuditingCommitteeMeetingin2025 | XunzhangLIU,ChangqingDUAN,HuirongLIU,QinglinLIU,RenzhuYU,ZhuquanWANG,EnricoSivieri | 1 | 2025.04.16 | Themeetingdeliberatedandapprovedthe2024AnnualReport,DraftProposalon2024AnnualProfitDistribution,ProposalonAppointingCertifiedPublicAccountantsFirm,2024AnnualSelfAssessmentReportonInternalControland2025AnnualInternalAuditPlan. | — | — | No |
| TheSecondAuditingCommitteeMeetingin2025 | XunzhangLIU,ChangqingDUAN,HuirongLIU,QinglinLIU,RenzhuYU,ZhuquanWANG,EnricoSivieri | 1 | 2025.04.23 | Themeetingdeliberatedandapprovedthe2025FirstQuarterReport. | — | — | No |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
TheThirdAuditingCommitteeMeetingin2025
| TheThirdAuditingCommitteeMeetingin2025 | JinfengREN,JianluanGUO,YanXU,XinSU,RenzhuYU,ZhuquanWANG,SamaraOrsatti | 1 | 2025.06.09 | ThemeetingdeliberatedandapprovedtheProposalonElectionofAuditingCommitteeConvenor. | — | — | No |
| TheFourthAuditingCommitteeMeetingin2025 | JinfengREN,JianluanGUO,YanXU,XinSU,RenzhuYU,ZhuquanWANG,SamaraOrsatti | 1 | 2025.08.26 | Themeetingdeliberatedandapprovedthe2025Semi-AnnualReportandProposalon2025Semi-AnnualProfitDistribution. | — | — | No |
| TheFifthAuditingCommitteeMeetingin2025 | JinfengREN,JianluanGUO,YanXU,XinSU,RenzhuYU,ZhuquanWANG,SamaraOrsatti | 1 | 2025.10.23 | Themeetingdeliberatedandapprovedthe2025ThirdQuarterReport. | — | — | No |
| TheFirstEmolumentCommitteeMeetingin2025 | ChangqingDUAN,HuirongLIU,QinglinLIU,RenzhuYU,ZhuquanWANG,YunCHIANG,JianxunJIANG,MarcoGiovanniFerrari | 1 | 2025.04.16 | ThemeetingdeliberatedandapprovedtheProposalon2024AnnualPerformanceAssessmentResultsoftheCompany’sSeniorExecutives. | — | — | No |
| TheSecondEmolumentCommitteeMeetingin2025 | JianluanGUO,YanXU,XinSU,RenzhuYU,ZhuquanWANG,YunCHIANG,JianxunJIANG,MarcoGiovanniFerrari | 1 | 2025.06.09 | ThemeetingdeliberatedandapprovedtheProposalonElectionofEmolumentCommitteeConvenorandProposalonCompensationPerformanceDesign(2025-2027)forSeniorExecutives. | — | — | No |
| TheThirdEmolumentCommittee | JianluanGUO,YanXU,XinSU,RenzhuYU,ZhuquanWANG,Yun | 1 | 2025.07.25 | ThemeetingdeliberatedandapprovedtheTheProposalonFailuretoAchieveConditionsforLiftingRestrictionsintheSecondPeriodofLifting | — | — | No |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Meetingin
2025
| Meetingin2025 | CHIANG,JianxunJIANG,MarcoGiovanniFerrari | RestrictioninvolvedintheCompany’s2023RestrictedShareIncentivePlanandProposalonBuy-backandCancellingSomeRestrictedSharesoftheCompany’s2023RestrictedShareIncentivePlanandtoAdjusttheBuy-backPrice. |
7.TheworkoftheBoardofSupervisorsWhetherornottheBoardofSupervisorsfoundanyexistencerisktotheCompanyinoversightactivitiesduringthereportperiod□Yes?NoTheBoardofSupervisorshasnoobjectionstosupervisionmattersduringthereportperiod.
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
8.StaffoftheCompany
(1)Staffnumber,specialtyconstitutionandeducationdegree
Incumbentstaffnumberofparentcompanyattheendofreportingperiod(people)
| Incumbentstaffnumberofparentcompanyattheendofreportingperiod(people) | 902 |
| Incumbentstaffnumberofmajorsubsidiarycompaniesattheendofreportingperiod(people) | 1,209 |
| Totalincumbentstaffattheendofreportingperiod(people) | 2,111 |
| Totalstaffgettingpaidincurrentperiod(people) | 2,111 |
| Retiredstaffnumberwhoseexpensesareundertakenbyparentcompanyorsubsidiarycompanies(people) | 0 |
| Specialtyconstitution | |
| Category | Numberofpeople(people) |
| Productionstaff | 608 |
| Salesstaff | 1,042 |
| Technicalstaff | 121 |
| Financialstaff | 95 |
| Administrativestaff | 245 |
| Total | 2,111 |
| Educationdegree | |
| Category | Number(People) |
| Postgraduateandabove | 106 |
| Bachelor | 838 |
| JuniorCollege | 670 |
| TechnicalsecondaryschoolorSeniorhighschool | 360 |
| Juniorhighschoolandbelow | 137 |
| Total | 2,111 |
(2)RemunerationpolicyTheCompanyhasestablishedandimprovedtheremunerationandwelfaresystem,includingsalarysystem,incentivemechanism,socialsecurityandmedicalinsuranceandsoon,toensuretheparticipationofallemployees.Inaccordancewiththelaw,theCompanypurchasessocialendowmentinsurance,medicalinsurance,occupationalinjuryinsurance,unemploymentinsuranceandmaternityinsurance,andpayshousingfundfortheemployees.Basedontheprincipleof“distributionaccordingtoworkandequalpayforequalwork”,theCompanypaysthestaff’sremunerationtimely.WiththeimprovementoftheCompany’sprofitability,theCompanysteadilyimprovesthestaff’sremunerationandwelfare,andprovidesitsemployeesthecompetitivesalaryandequalopportunityfordevelopment.
(3)TrainingplanIn2026,theCompanyplanstoenhancethecorethemeof“linnovationanddecision-makingpower”ofemployeesandtrainemployeesatalllevelstoimprovetheirinnovationanddecision-makingability,adapttomarketchanges,andenhancethecompetitiveadvantageofenterprises.The
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Companyplanstocustomizepersonalizedandsystematiccoursesfordifferentpositionsandmaintainquarterlytrainingforemployeesatalllevelsfor1-2times,atleast2dayseachtime,andensurethatthetrainingrateofemployeesoftheCompanycouldreachto100%duringtheyear.Focusonimprovingthescientificdecision-makingabilityoftheCompany’scorporate-levelleaders.Theplanistoimprovethepoliticalliteracy,strengthentheconstructionofpartyconductandcleangovernmentandcultivatestrategicvisionandoveralloutlookoftheleadinggroupthroughtheformofon-siteteachingandholdingmeetingsinsteadoftraining.Byanalyzingthedevelopmenttrendoftheglobaleconomyandthewineindustry,seizetheopportunitytimelyandseektherapiddevelopmentoftheenterprise.Focusonimprovingmanagementinnovationformiddle-levelmanagementpersonnel.Itisplannedtouseon-siteteaching,videocourses,self-studybooksandotherformstolearnhowtoenhancetheawarenessofmanagementinnovationofmiddle-levelmanagementpersonnel.Encouragemiddle-levelmanagementpersonneltoparticipateadvanceddegreetrainingsuchasMBAandupgradeprofessionaltitlestoensurethatthecompany’scadreteamtomeettheneedsoftheCompany’ssustainabledevelopment,improvetheabilityofmiddle-levelcadrestodopracticalwork,andbetterleadteammemberstowork.InviteexpertstotheCompanytogiveon-sitelectures,explaintheknowledgeofAIapplication,andenhancetheworkingabilityofthemajorityofmiddle-levelmanagementpersonnel.Conductsafetyknowledgetrainingirregularlyeverymonthtostrengthensafetyawarenessandtheabilitytoidentifyandrespondtosafetyrisks.Improvetheirthinkinginnovationforemployeeswhoselevelareorbelowsectionchiefthroughcombiningon-siteteachingandoutreachtraining.Enhancethebusinessabilityandprofessionalknowledgereservelevelofordinarystaff.Encouragemulti-dimensionalinnovationofemployeesindailywork,optimizetheworkprocess,andbettercompletetheworkcontentofeachmodule.Arrangesafetyknowledgetrainingeverymonthtoenhancesafetyawarenessandtheabilitytoidentifyandrespondtosafetyrisks.Thetrainingfornewemployeesismainlybasedonbasictrainingbasedon-siteteaching,outreachtrainingandfieldvisitsandlearning.Itaimstoimprovethebasicknowledgeofnewemployeesinlaborlaw,productiontechnology,safetyandotherprofessionalaspectsandin-depthlearningofcorporateculture,rapidchangeofidentity,improvethephysicalqualityofnewemployees,andenhancethesenseofcorporateidentityandbelonging.
(4)Laboroutsourcing?Applicable?Inapplicable
9.TheCompany’sprofitdistributionandincreasingequitywithcapitalreserveProfitdistributionpoliciesespeciallypromulgation,implementationoradjustmentofcashdividendspoliciesduringthereportperiod?Applicable□InapplicableDeliberatedandpassedbytheCompany’s2024AnnualShareholders’MeetingconvenedonMay23,2025,theCompany’s2024annualprofitdistributionschemeisshownasfollows:basedontotal671,823,900shares,theCompanywouldpaycashdividendtoallshareholdersregisteredontheshareregistrationday:CNY4pertensharesincash,withatotalofCNY268,729,560.
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Fromdisclosureofthedistributionschemetoimplementation,thetotalsharecapitaloftheCompanyhasnotchanged.OnJune13,2025,theCompanypublishedImplementationAnnouncementof2024AnnualEquityDistributiononChinaSecuritiesJournal,SecuritiesTimesandwww.cninfo.com.cn,determiningthattheshareregistrationdayandtheex-dividenddayofASharewasrespectivelyonJune19,2025andJune20,2025.Thelasttradingday,theex-dividenddayandtheshareregistrationdayofBSharewasrespectivelyonJune19,2025,June20,2025andonJune24,2025.ThistimethedispatchingobjectscontainallAShareholdersregisteredatChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenCompany(hereafterreferredtoas“CSDCShenzhenCompany”)uptotheafternoonofJune19,2025aftertheclosingofShenzhenStockExchangeandallBShareholdersregisteredatCSDCShenzhenCompanyuptotheafternoonofJune24,2025(ThelasttradingdaywasonJune19,2025)aftertheclosingofShenzhenStockExchange.ThedispatchingthistimehasalreadybeensuccessfullycompletedinJuneof2025.TheprofitdistributionschemeimplementedisinaccordancewiththeprofitdistributionschemeapprovedbytheShareholders’Meeting.TheimplementationtimeoftheprofitdistributionschemehasbeenlessthantwomonthssincetheShareholders’MeetingoftheCompanyapprovedthescheme.
Specialexplanationforthecashdividendspolicy
| Specialexplanationforthecashdividendspolicy | |
| WhetheritisinaccordancewiththerequirementsoftheregulationintheArticlesofAssociationandtheresolutionofshareholders’meeting | Yes |
| Whetherthedistributionstandardandproportionisclearanddefinite | Yes |
| Whethertherelevantdecisionprocessandmechanismiscomplete | Yes |
| Whethertheindependentdirectorsperformtheirresponsibilitiesandplaytheroles | Yes |
| Ifthecompanydoesnotpaycashdividend,itshoulddisclosethespecificreasonsandthenextstepstoenhancethereturnlevelofinvestors: | Thecompanyhadpaidcashdividend |
| Whetherthesmallandmiddleshareholdershavethechancetoexpresstheiropinionsandappeals,aswellastheirlawfulrightandinterestisinanenoughprotection | Yes |
| Whetheritislegalandtransparentfortheconditionandprocesswhileadjustingandamendingthecashdividendspolicy | Yes |
Duringthereportperiod,theCompanyearnedprofit,theprofitoftheparentcompanythatcouldbedistributedtoshareholderswaspositivebutwithoutproposingcashdividenddistributionpreliminaryscheme.?Applicable?InapplicableTheCompany’spreliminaryschemeofprofitdistributionandpreliminaryschemeofincreasingequitywithcapitalreserveforthereportperiod?Applicable□Inapplicable
| Numberofsendingbonussharespertenshares(share) | 0 |
| Numberofdividendpayoutpertenshares(CNY)(includingtax) | 2.5 |
| Thecardinalnumberofthecapitalstocksforthepreliminarydistributionscheme(share) | 657,240,128 |
| Cashdividenddistribution（CNY）(includingtax) | 164,310,032 |
| Amountofcashdividends(eg.sharesbuy-back)（CNY）inotherways | 99,416,388.42 |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Totalcashdividenddistribution（CNY）(includingotherways)
| Totalcashdividenddistribution（CNY）(includingotherways) | 263,726,420.42 | ||||
| Distributableprofit（CNY） | 9,037,437,598 | ||||
| Theproportionofcashdividenddistributioninthetotalprofitdistribution(includingotherways) | 100 | ||||
| Cashdividenddistributionthistime | |||||
| IftheCompany’sdevelopmentisingrowthstageandmajorcapitalexpenditureisarranged,whilemakingprofitdistribution,theproportionofcashdividendsshouldtakesupnolessthan20%inthisprofitdistribution. | |||||
| Detailedexplanationforthepreliminaryschemeofprofitdistributionorincreasingequitywithcapitalreserve | |||||
| Accordingtoregulationof155thitemintheArticlesofAssociation,whichisthat“theCompanycandistributedividendseitherincashorbyshare,withprioritygiventocash.ExceptforthecircumstancesstipulatedinthisArticleswhereprofitdistributionisnotallowed,theprofittobedistributedeachyearisnotlessthan25%ofthedistributableprofitrealizedinthesameyearandtheaccumulatedsumofprofitdistributedincashinthelastthreeyearsisnotlessthan30%oftheyearlyaveragedistributableprofitrealizedinthelastthreeyears.”.Meanwhile,consideringtheamountonthecapitalexpenditurein2026,undertheconditionofnotinfluencingthenormalproductionandoperation,theCompanyputforwardpreliminaryschemeonprofitdistributionin2025asfollowing:Becausetheleftamountoflegalearnedsurplusreservereaches50%ofregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewillnotbedrawn.BasedontheCompany’s657,240,128sharesattotaluptoDecember31,2025,theCompanyplanstopayCNY2.5incashasdividendsforeverytenshare(includingtax)totheCompany’sallshareholders,totalinguptoCNY164,310,032.Theretainedandundistributednetprofitwillbereservedfordistributioninthenextyear.Thecashdividenddistributedtoshareholdersofdomesticlistedforeignshares(Bshare)ispaidinHKDconvertedbasedonthemiddleratebetweenCNYandHKDissuedbythePeople’sBankofChinaonthefirstworkingdayaftertheresolutiondateof2025AnnualShareholders’Meeting. | |||||
10.ImplementationoftheCompany’sequityinventiveplan,employeestockownershipplanorotheremployeeincentivemeasures?Applicable□Inapplicable
(1)EquityInventiveTheCompany’s2023restrictedshareincentiveplangrantedatotalof203individuals.Duringthereportingperiod,theBoardofDirectorsoftheCompany,inaccordancewiththerelevantprovisionsoftheIncentivePlan,afterdeliberation,determinedthatduetofailuretomeettheperformanceassessmentrequirements,theCompanyboughtbackandcancelled1,864,305restrictedsharesthat
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
havebeengrantedbutnotyetreleasedfromrestrictionstothe179incentiverecipients;asoneincentiverecipienthasresignedduetopersonalreasonsandnolongermettheconditionsoftheIncentivePlan,theCompanyboughtbackandcancelled21,946restrictedsharesthatthedepartingincentiverecipienthasbeengrantedbutnotyetreleasedfromrestrictions;assixteenincentiverecipientsnolongermettheconditionsoftheIncentivePlanduetojobchanges,theCompanyboughtbackandcancelled267,521restrictedsharesthathavebeengrantedtotheseincentiverecipientsbutnotyetreleasedfromrestrictions.Therefore,theCompanyboughtbackandcancelledatotalof2,153,772restrictedshares.Inviewoftheimplementationofthe2023annualequitydistributionand2024annualequitydistributionafterthecompletionoftheshareregistrationoftherestrictedsharegrantedtotheincentiveobjects,theBoardofDirectorsadjustedthebuy-backpriceoftherestrictedsharethathasnotyetbeenliftedrestrictionunderthe2023restrictedshareincentiveplaninaccordancewiththeprovisionsoftheIncentivePlan.Therefore,thebuy-backpriceoftherestrictedsharesofthisbuy-backandcancellationwasCNY14.65pershare.EquityincentivesgrantedtodirectorsandseniorexecutivesoftheCompany?Applicable?Inapplicable
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Unit:shares
Name
| Name | Position | Numberofshareoptionsheldatthebeginningoftheyear | Numberofnewshareoptionsgrantedduringthereportingperiod | Numberoffeasiblesharesduringthereportingperiod | Numberofexercisedsharesduringthereportingperiod | Theexercisepriceofexercisedsharesduringthereportingperiod(CNY/share) | Numberofshareoptionsheldattheendoftheperiod | Themarketingpriceattheendofthereportingperiod(CNY/share) | Numberofrestrictedsharesheldatthebeginningoftheperiod | Numberofsharesunlockedduringtheperiod | Numberofnewrestrictedsharegrantedduringthereportingperiod | Grantpriceofrestrictedshare(CNY/share) | Numberofrestrictedshareheldattheendoftheperiod |
| HongjiangZHOU | Chairman | 168,000 | 72,000 | 96,000 | |||||||||
| JianSUN | DirectorandGeneralManager | 147,000 | 63,000 | 84,000 | |||||||||
| JimingLI | DirectorandDeputyGeneralManager | 112,000 | 48,000 | 64,000 | |||||||||
| JianxunJIANG | Director,DeputyGeneralManager,Boardsecretary | 112,000 | 48,000 | 64,000 | |||||||||
| HuaJIANG | GeneralManagerofBrandyBusinessDivision | 112,000 | 48,000 | 64,000 | |||||||||
| BinPENG | DeputyGeneralManager | 112,000 | 48,000 | 64,000 | |||||||||
| JianfuPAN | GeneralManagerAssistant | 70,000 | 30,000 | 40,000 | |||||||||
| QingkunKONG | GeneralManagerAssistant | 70,000 | 30,000 | 40,000 |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
ShiluLIU
| ShiluLIU | GeneralManagerAssistant | 70,000 | 30,000 | 40,000 | |||||||||
| ZhenboXIAO | GeneralManagerAssistant | 70,000 | 30,000 | 40,000 | |||||||||
| HongboSUN | GeneralManagerAssistant | 25,182 | 10,793 | 14,389 | |||||||||
| CuimeiGUO | GeneralManagerAssistant | 28,763 | 12,327 | 16,436 | |||||||||
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 1,096,945 | 470,120 | 0 | -- | 626,825 |
| Note（ifhave） | Mr.HuaJiang,usedtobetheCompany’sDeputyGeneralManagerwhentherestrictedsharesweregrantedin2023,andheiscurrentlytheGeneralManageroftheBrandyBusinessDivision. | ||||||||||||
EvaluationmechanismsandincentivesforseniorexecutivesAccordingtotheCompensationPerformanceDesign(2025-2027)forSeniorExecutivesapprovedbytheBoardofDirectors,thecompensationofseniorexecutiveincludesbasiccompensation(fixedcompensation+performancecompensation),excessprofitcommissionandlong-termincentive(deferredcash).TheCompanyhascontinuouslyimprovedtheperformanceappraisalmechanism,andtheevaluationandincentiveofseniorexecutivesarelinkedtotheCompany’sperformanceandpersonalworkresults.Atthebeginningoftheyear,accordingtotheoveralldevelopmentstrategyandannualbusinessobjectivesoftheCompany,theannualperformanceindicatorsandjobresponsibilitiesofseniorexecutivesaredeterminedaccordingtothedivisionofwork.TheannualperformanceandworkresultsarepresentedbytheEmolumentCommitteeoftheBoardofDirectors.Afterthedeliberationandapprovaloftheassessmentresults,theperformanceassessmentofseniorexecutivesiscarriedout,andtherewardsandpunishmentsarehonored.
(2)Theimplementationofemployeeshareholdingplan?Applicable?Inapplicable
(3)Otheremployeeincentives?Applicable?Inapplicable
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
OnJune26,2023,therestrictedshareincentiveplanwasfirstgrantedandregistered.Inadditiontotheabovedirectorsandseniorexecutives,theCompanyalsogranted5.2956millionrestrictedsharesto193middle-levelmanagersandcorepersonals.
11.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod
(1)ConstructionandimplementationofinternalcontrolFortheconstructionandimplementationofthecompany’sinternalcontrol,pleaserefertothe2025AnnualSelf-AssessmentReportonInternalControldisclosedinSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnonApril18,2026.
(2)Specificsituationsforsignificantdefectsoftheinternalcontrolfoundduringthereportperiod
□Yes?No
12.Thecompany’smanagementandcontroloversubsidiariesduringthereportingperiod
Companyname
| Companyname | Integrationplan | Integrationprogress | Problemsencounteredinintegration | Actionstaken | Resolveprogress | Follow-upresolutionplan |
| None | None | None | None | None | None | None |
Thereareabnormalcircumstancesinthemanagementandcontrolofthesubsidiaries.
□Yes?No
13.Internalcontrolself-assessmentreportorinternalcontrolauditreport
（1）Internalcontrolself-assessmentreport
| Disclosuredateforfulltextoftheinternalcontrolself-assessmentreport | 2026.04.18 |
| Disclosureindexforfulltextoftheinternalcontrolself-assessmentreport | 2025AnnualSelf-AssessmentReportonInternalControlwasdisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril18,2026 |
| PercentageoftotalunitassetsincludedinscopeoftheassessmentaccountingfortheCompany’stotalassetsofconsolidatedfinancialstatements | 80.21% |
| PercentageofunitoperatingincomeincludedinscopeoftheassessmentaccountingfortheCompany’soperatingincomeofconsolidatedfinancialstatements | 81.44% |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
StandardsofDefectIdentification
| StandardsofDefectIdentification | ||
| Category | Financialreport | Non-financialreport |
| Qualitativecriteria | Significantdefects:onedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport.Forexample:?Company’sDirectors,SupervisorsandSeniorManagementhavefraudulentpractices;?TheCompanymakescorrectionsforthepublishedfinancialreport;?Theauditofexternalintermediaryagentfindssignificantmisstatementexistinginthecurrentfinancialreport,buttheCompanydoesnotrealizeitduringtheoperationprocess;?Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescope;?TheCompany’sauditcommitteeandinternalauditdepartmentmakesaninefficientsupervisionforinternalcontrol;?Othersituationsmaybecausesignificantmisdirectionwhichguidesthereportuserstomaketherightjudgment.Majordefects：Thedefectofinternalcontrol,individuallyortogetherwithotherdefects,hasthereasonableprobabilitytocausethesignificantmisstatements,whichcannotbepromptlyprevented,orfoundandcorrectedtimelyinthefinancialreport,althoughthemisstatementsneitherachievesnorexceedstheimportancelevelbutstillarisingtheattentionofBoardofDirectorsandmanagementteam.?Failuretoselectandapplyaccountingregulationsinaccordancewithgenerallyacceptedaccountingprinciples;?Failuretoestablishtheanti-fraudproceduresandcontrolmeasures;?Failuretosetupcorrespondingcontrolmechanismortocarryoutandtakecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects. | Significantdefects:Anysituationslistedbelowappears,itcanberegardedassignificantdefects.?Operation:Unabletoachievealloperationtargetorkeybusinessindex,widelyoutofbudgetinvariousaspects.?Safetyaccidenteffects:Causeonepersonandabovedeath,ormorethan3personseriousinjuries.?Majornegativeeffects:Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescopeintheinternationalandnationalmainstreammedia.?Environmenteffects:Createirreparabledamagestoenvironment,andcausemassivepubliccomplains.Majordefects:Anysituationslistedbelowappears,itcanberegardedasmajordefects.?Operation:Unabletoachievepartlyoperationtarget,abigmarginoutofbudgetinvariousaspects.?Safetyaccidenteffects:Withoutreachingthenumberofpersonlossorseriousinjuryofsignificantdefects.?Majornegativeeffects:Negativenewsappearsinthemediawithinfluencingawidescopeintheprovincialmainstreammedia.?Environmenteffects:Causeheavyenvironmentdamagesandmassivepubliccomplains,oughttocarryoutthesignificantremedialmeasures.Generaldefects:Anysituationslistedbelowappears,itcanberegardedasgeneraldefects.?Operation:Othereffectsunabletoconstitutethesignificantdefectsormajordefects.?Safetyaccidenteffects:Personalinjurylessthanthequantitativestandardsofmajordefects.?Majornegativeeffects:Otherdefectsunabletoconstitutethesignificantdefectsormajordefects.?Environmenteffects:Otherenvironmenteffectsunabletoconstitutethesignificantdefectsormajordefects. |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Quantitativecriterion
| Quantitativecriterion | Fortotalassets/Owner’sequity:?Significantdefects:misstatements≧1%,or?Majordefects:0.5%≦misstatements<1%,or?Generaldefects:misstatements<0.5%Foroperationrevenue:?significantdefects:misstatements≧1%,or?Majordefects:0.5%≦misstatements<1%,or?Generaldefects:misstatements<0.5%Forpretaxprofit:?Significantdefects:misstatements≧5%,or?Majordefects:2%≦misstatements<5%,or?Generaldefects:misstatements<2% | Fordirectpropertyloss:?Significantdefects:MorethanCNY10million?Majordefects:CNY1million-CNY10million(includingCNY1million)?Generaldefects:LessthanCNY1million |
| Numberofsignificantdefectinfinancialreport | 0 | |
| Numberofsignificantdefectinnon-financialreport | 0 | |
| Numberofmajordefectinfinancialreport | 0 | |
| Numberofmajordefectinnon-financialreport | 0 | |
(2)Internalcontrolauditreport?Applicable□Inapplicable
| Auditopinionsoftheinternalcontrolauditreport | |
| Webelievethat,thecompanymaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialaspectsinaccordancewiththeBasicNormsforCorporateInternalControlandrelatedregulationsonDecember31,2025. | |
| Disclosureoftheinternalcontrolauditreport | Disclosure |
| Disclosuredateforthefulltextoftheinternalcontrolauditreport | 2026.04.18 |
| Disclosureindexforthefulltextoftheinternalcontrolauditreport | 2025AnnualSelf-AssessmentReportonInternalControlwasdisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril18,2026. |
| Opiniontypeoftheinternalcontrolauditreport | Standardwithoutreservedopinion |
| Whetherornotexistssignificantdefectsinnon-financialreports | No |
YantaiChangyuPioneerWineCo.Ltd.2025AnnualReport
Whetherornottheaccountingfirmissuednon-standardopinionsfortheauditreportofinternalcontrol
□Yes?NoWhethertheauditreportofinternalcontrolissuedbytheaccountingfirmisinconsistencywiththeself-assessmentreportoftheboardofdirectors?Yes?NoWhetheranon-standardauditopiniononinternalcontrolwasissuedduringthereportingperiodorthepreviousyear
□Yes?No
14.Self-inspectionandrectificationofproblemsinthespecialactionongovernanceoflistedcompanyNo.
15.MajorenvironmentalissuesWhetherthelistedcompanyanditssubsidiariesbelongtomajorpolluterspublishedbytheenvironmentalprotectiondepartment?Yes?No
Thenumberofenterprisesincludedinthelistofenterpriseslegallydisclosingenvironmentalinformation
| Thenumberofenterprisesincludedinthelistofenterpriseslegallydisclosingenvironmentalinformation | 1 | |
| No. | CompanyName | Queryindexforthereportonthelegaldisclosureofenvironmentalinformation |
| 1 | LiaoningChangyuGoldenIcewineValleyCo.,Ltd. | https://qyxxpl.ywzh.lnsthj.cn:8802/home/index |
16.SocialresponsibilityperformancePleaserefertothe2025Environmental,SocialandRegulatoryReport(ESG)disclosedonCNINFO(www.cninfo.com.cn)bytheCompanyonApril18,2026.
17.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationPleaserefertothe“CharityandCommunityInvolvement”sectionof2025Environmental,SocialandRegulatoryReport(ESG)disclosedonCNINFO(www.cninfo.com.cn)bytheCompanyonApril18,2026.
V.Majorissues
1.Implementationofcommitments
(1)CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirersandtheCompanyandotherrelatedcommitmentpartieshaveimplementedduringthereportperiodandhavenotimplementeduptotheendofthereportperiod?Applicable□Inapplicable
Commitments
| Commitments | Commitmentparty | Commitmenttype | Commitmentcontent | Commitmenttime | Commitmentperiod | Implementation |
| Commitmentsattheinitialpublicofferingorrefinancing | YantaiChangyuGroupCo.,Ltd. | Solvehorizontalcompetition | Non-horizontalcompetition | 1997.05.18 | Forever | Hasbeenperforming |
| YantaiChangyuGroupCo.,Ltd. | Cleartheuseoftrademarkroyalty | AccordingtoTrademarkLicenseContract,thetrademarkroyaltyofChangyuandothertrademarkspaidbytheCompanytoYantaiChangyuGroupCo.,Ltd.everyyearismainlyusedforadvertisingChangyuandothertrademarksandthiscontractproductsbyYantaiChangyuGroupCo.,Ltd. | 1997.05.18 | 1997.05.18-2019.04.04 | From2013to2017,accordingtoTrademarkLicenseContract,thetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksincludingChangyuandcontractproducts.Except2013to2017duringwhichthecommitmentwasnotstrictlyperformed,YantaiChangyuGroupCo.,Ltd.hasbeenperformingitscommitment. | |
| Commitmentundertimelyimplementationornot | Yes | |||||
| Whetherornottohavespecificreasonsoftheunimplementedcommitmentandnextsteps | None | |||||
(2)TheCompanyshouldmakeastatementontheachievedoriginalprofitforecastofassetsorprojectsanditsreasonifthereisprofitforecastofCompany’sassetsorprojectsandthereportperiodisstillintheprofitforecastperiod
□Applicable?Inapplicable
(3)TheperformancecommitmentsinvolvedbytheCompany
□Applicable?Inapplicable
2.Non-operatingcapitaloccupyingoflistedcompanybycontrollingshareholderanditsrelatedparties
□Applicable?InapplicableTherearenonon-operatingcapitalsoccupyingoflistedcompanybycontrollingshareholderanditsrelatedpartiesduringthereportperiod.
3.Illegalexternalguarantee
□Applicable?InapplicableThereisnoillegalguaranteesituationduringthereportperiod.
4.ExplanationofboardofdirectorsonthelatestNon-standardAuditReport
□Applicable?Inapplicable
5.ExplanationofNon-standardAuditReportgivenbyaccountingfirminthereportperiodfromboardofdirectors,boardofsupervisorsandindependentdirectors
□Applicable?Inapplicable
6.Comparedwiththelastyear’sfinancialreport,explanationofthechangesinaccountingpolicy,accountingestimationorcorrectionofsignificantaccountingerrors
□Applicable?InapplicableThereisnochangesofaccountingpolicy,accountingestimationorcorrectionofsignificantaccountingerrorsduringthereportperiod.
7.Comparedwiththelastyear’sfinancialreport,explanationforthechangesoftheconsolidatedstatementsscope?Applicable?InapplicableDuringthereportingperiod,theCompanytransferredtheequityofitssubsidiary,ETABLISSEMENTSROULLETFRANSAC,therebycausingacorrespondingchangeintheconsolidatedscope.
8.TheappointmentanddismissalofcertifiedpublicaccountantsCurrentlyappointedaccountingfirm
Domesticaccountingfirmname
| Domesticaccountingfirmname | KPMGHuaZhenLLP |
| Remunerationfordomesticaccountingfirm(CNY’0000) | 205 |
| Consecutiveperiodfortheauditserviceofdomesticaccountingfirm | 7 |
| Nameofcertifiedpublicaccountantfortheauditserviceofdomesticaccountingfirm | JiaWANG,ZhichaoLIU |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofdomesticaccountingfirm | 7 |
| Overseasaccountingfirmname(ifhave) | — |
| Remunerationforoverseasaccountingfirm(CNY’0000)(ifhave) | 0 |
| Consecutiveperiodfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Nameofcertifiedpublicaccountantfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofoverseasaccountingfirm(ifhave) | — |
Whetherornottoemployanewaccountingfirmduringthereportperiod?Yes?NoToemployinternalcontrolauditaccountingfirms,financialadviserorsponsor.?Applicable?InapplicableThisyear,KPMGHuazhenLLPwashiredastheinternalcontrolauditinstitution.Theauditfeewasnotdeterminedseparately,butwasCNY2.05milliontogetherwiththefinancialreportauditfee.
9.Faceofsuspensionandterminationoflistingafterthedisclosureofannualreport?Applicable?Inapplicable
10.Bankruptcyreorganization?Applicable?InapplicableThereisnobankruptcyreorganizationduringthereportperiod.
11.Materiallitigationandarbitration?Applicable?InapplicableTherearenomateriallitigationandarbitrationduringthereportperiod.
12.Penaltyandrectification?Applicable?InapplicableTherearenopenaltyandrectificationduringthereportperiod
13.CreditoftheCompany,holdingshareholdersandactualcontrollers?Applicable?Inapplicable
14.Significantrelatedtransactions
(1)Relatedtransactionsinrelationtodailyoperations?Applicable□Inapplicable
Related
party
| Relatedparty | Relationship | Type | Content | Pricingprinciple | Price | Amount(CNY‘0000) | Proportionaccountingforamountofsimilartransactions | Approvedtransactionquota(CNY‘0000) | Whetherexceedapprovedtransactionquota | Clearingform | Availablemarketpriceofsimilartransactions | Disclosuredate | Disclosureindex |
| YantaiShenmaPackagingCo.,Ltd. | Controlledbythesameparentcompany | Purchaseandcommissionprocessing | Purchaseandcommissionprocessingpackagingmaterials | Agreementpricing | Determinedbyagreement | 5,548 | 16.91% | 6,800 | No | Cash | No | 2025.04.18 | AnticipatedAnnouncementon2025AnnualRoutineRelatedTransactiondisclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFOin2025 |
| Total | -- | -- | 5,548 | -- | 6,800 | -- | -- | -- | -- | -- | |||
| Detailsofthereturnoflargesales | No | ||||||||||||
| Actualperformanceoftheestimatedtotalamountfordailyoperationsrelatedtransactionsbycategorythatwilloccurduringthisperiod(ifhave) | No | ||||||||||||
| Reasonforthedeferencebetweentransactionpriceandmarketreferenceprice(ifapplicable) | No | ||||||||||||
(2)Relatedtransactionsinrelationtoacquisitionandsalesofassetsorequity?Applicable?InapplicableThereisnorelatedtransactionsinrelationtoacquisitionorsalesofassetsorequityduringthereportperiod.
(3)Relatedtransactionsinrelationtocommonforeigninvestment?Applicable?InapplicableThereisnorelatedtransactionsinrelationtocommonforeigninvestmentduringthereportperiod.
(4)Relatedcurrentcreditanddebttransactions?Applicable□InapplicableWhetherornotexistingnon-operatingrelatedcreditanddebttransactions□Yes?NoThereisnonon-operatingrelatedcreditanddebttransactionsduringthereportperiod.
(5)Transactionswithrelatedfinancialcompanies?Applicable?InapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentheCompanyandrelatedfinancialcompaniesandrelatedparties.
(6)TransactionsbetweentherelatedpartiesandfinancialcompaniescontrolledbytheCompany?Applicable?InapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentherelatedpartiesandthefinancialcompaniescontrolledbytheCompany.
(7)Othermajorrelatedtransactions?Applicable?InapplicableThecompanyhasnoothersignificantrelatedpartytransactionsduringthereportingperiod.
15.Majorandimportantcontractsandexecutionresults
(1)Trusteeship,contractandleaseholdissues?Trusteeshipsituation?Applicable?InapplicableThereisnotrusteeshipsituationduringthereportperiod?Contractsituation?Applicable?InapplicableThereisnocontractsituationduringthereportperiod.?Leaseholdsituation
?Applicable□InapplicableExplanationforleasesituationOnJanuary1,2022,theCompanyrenewedtheSpaceLeaseAgreementwiththecontrollingshareholderYantaiChangyuGroupCompanyLimited.TheCompanyleasedthespacewith15,196.94squaremeterslocatingatNo.174ShihuiyaoRoad,ZhifuDistrict,YantaiCity.TherentperyearisCNY1.4645millionwitharentalperiodof5yearsfromJanuary1,2022toDecember31,2026.OnJanuary1,2022,theCompany’ssubordinateSales&MarketingCo.ofYantaiChangyuPioneerWineCompanyLimitedBrandySalesDivisionrenewedtheSpaceLeaseAgreementwiththecontrollingshareholderYantaiChangyuGroupCompanyLimited,leasingthespacewith42,552.83squaremeterslocatingatNo.1JichangRoad,ZhifuDistrict,YantaiCityandthespacewith3,038squaremeterslocatingat56DamaRoad,ZhifuDistrict,YantaiCity,whichareallunderthenameofcontrollingshareholder.TherentofabovespacesperyearisCNY4.3935millionwitharentalperiodof5yearsfromJanuary1,2022toDecember31,2026.In2023,thisCompanysignedahouse-leasingcontractwithYantaiShenmaPackagingCompanyLimited.Accordingtothiscontract,sinceJuly1,2023,thisCompanyleasedpropertytoYantaiShenmaPackagingCompanyLimitedforabusinesspurposewiththeannualrentofCNY1,626,880.ThiscontractexpiresonJune30,2028.ProjectwhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod?Applicable?InapplicableTherearenoleaseprojectswhoseprofitandlossbroughtfortheCompanyreachmorethan10%ofthetotalprofitduringthereportperiod.
(2)Majorguarantee?Applicable□Inapplicable
Unit:CNY’0000
ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries）
| ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries） | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | Collateral(ifhave) | Counterguaranteesituation(ifhave) | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| - | - | - | - | - | - | - | - | - | - | - |
| GuaranteesituationsbetweentheCompanyandsubsidiaries | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence | Actualguaranteeamount | Guaranteetype | Collateral | Counterguaranteesituation | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| KilikanoonEstatePtyLtd | 2025.10.25 | 7,000 | 2023.09.01 | 7,000 | Jointliabilityassurance | - | - | EffectiveasofthedatethisAgreementissignedandwillremainineffectaslongastheguarantorremainsinbusinesswithEastWestBank | No | Yes |
| Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(B1) | 7,000 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(B2) | 7,000 | |||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesbytheendofthereportperiod(B3) | 7,000 | Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(B4) | 7,000 | |||||||
| Guaranteesituationsbetweensubsidiaries | ||||||||||
| Guaranteeobjectname | Disclosuredateofrelated | Guaranteequota | Actualdateofoccurrence | Actualguarantee | Guaranteetype | Collateral | Counterguarantee | GuaranteePeriod | Whetherornotcomplete | Whetherornotbelongto |
announcementabout
guaranteequota
| announcementaboutguaranteequota | amount | situation | implementation | related-partyguarantee | |||||
| TotalguaranteeamountoftheCompany（Totalofabovethreemajoritems） | |||||||||
| Totaloftheapprovedguaranteequotaduringthereportperiod（A1+B1+C1） | 7,000 | Totaloftheactualguaranteeamountduringthereportperiod（A2+B2+C2） | 7,000 | ||||||
| Totaloftheapprovedguaranteequotabytheendofthereportperiod（A3+B3+C3） | 7,000 | Balanceoftheactualguaranteebytheendofthereportperiod（A4+B4+C4） | 7,000 | ||||||
| Theproportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’snetasset | 0.68% | ||||||||
| Among: | |||||||||
| Theamountofguaranteeforshareholders,actualcontrollersandtheirrelatedparties（D） | 0 | ||||||||
| Theamountofdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratioismorethan70%directlyorindirectly（E） | 0 | ||||||||
| Totalamountofguaranteeofthepartthatexceeds50%ofnetassets（F） | 0 | ||||||||
| Totalamountoftheabove-mentionedthreeitems（D+E+F） | 0 | ||||||||
| Explanationforundueguaranteesthathavehappenedwarrantyliabilityormaytakejointpaybackliabilitiesduringthereportperiod(ifhave) | No | ||||||||
| Explanationforviolatingdueprocesstoprovideexternalguarantee(ifhave) | No | ||||||||
DescriptionofthespecificsituationofusingcompoundguaranteeNo.
(3)Entrustingotherstomanagecashassets?Financialmanagemententrustment?Applicable?InapplicableThereisnofinancialmanagemententrustmentduringthereportperiod.?Loanentrustment?Applicable?InapplicableThereisnoloanentrustmentduringthereportperiod.
(4)Otherimportantcontracts?Applicable?Inapplicable
16.Theusageofraisedfunds?Applicable?InapplicableTherearenoothermajorissuesneedtobeexplainedduringthereportperiod.
17.Explanationofothersignificantmatters
□Applicable?Inapplicable
18.MajormattersoftheCompany’ssubsidiaries
□Applicable?Inapplicable
VI.ChangesinSharesandtheShareholders’Situation
1.Changesinshares
(1)Changesinshares
Unit:share
Amountbeforethischange
| Amountbeforethischange | Change(+,-) | Amountafterthischange | |||||||
| Amount | Percentage% | Allotnewshare | Distributebonusshare | Transferothercapitaltosharecapital | Others | Subtotal | Amount | Percentage% | |
| I.Shareswithtradinglimitedcondition | 4,861,098 | 0.72% | -2,186,772 | -2,186,772 | 2,674,326 | 0.41% | |||
| 1.State-ownedholdings | |||||||||
| 2.State-ownedlegalpersonholdings | |||||||||
| 3.Otherdomesticholdings | 4,861,098 | 0.72% | -2,186,772 | -2,186,772 | 2,674,326 | 0.41% | |||
| Amongwhich:domesticlegalperson | |||||||||
| domesticnaturalperson | 4,861,098 | 0.72% | -2,186,772 | -2,186,772 | 2,674,326 | 0.41% | |||
| 4.Foreign-ownedholdings | |||||||||
| Amongwhich:foreignlegalperson | |||||||||
| foreignnaturalperson | |||||||||
| II.Shareswithouttradinglimitedcondition | 666,962,802 | 99.28% | -12,397,000 | -12,397,000 | 654,565,802 | 99.59% | |||
| 1.Ashares | 455,094,295 | 67.74% | 18,000 | 18,000 | 455,112,295 | 69.25% | |||
2.Bshares
| 2.Bshares | 211,868,507 | 31.54% | -12,415,000 | -12,415,000 | 199,453,507 | 30.35% | |
| 3.Oversealistedforeignshares | |||||||
| 4.Others | |||||||
| III.Totalshares | 671,823,900 | 100% | -14,583,772 | -14,583,772 | 657,240,128 | 100% |
Causeofsharechange?Applicable?InapplicableThemainreasonforthechangeinshareholdingwasthat,theCompanyboughtbackandcancelledpartialrestrictedAsharesheldbytheincentiverecipients,aswellasboughtbackandcancelledpartialBsharesduringthereportingperiod.Approvalofsharechange?Applicable?InapplicableIthasbeendeliberatedandapprovedbytheBoardofDirectorsandShareholders’Meeting.Transferownershipofchangedshares?Applicable?InapplicableThetransfershavebeencompleted.Theinfluenceofsharechangeonthefinancialindicatorssuchasbasicearningspershare,dilutedearningspershareofthelatestyearandthelatestperiod,netassetpersharebelongingtotheCompany’scommonshareholders,etc..?Applicable?InapplicableOthercontentstheCompanythinksnecessaryorsecuritiesregulatorydepartmentsasktomakepublic.
?Applicable?Inapplicable
(2)Changesinrestrictedshares?Applicable?Inapplicable
Unit:share
Shareholdername
| Shareholdername | Numberofrestrictedsharesatthebeginningperiod | Increasednumberofrestrictedsharesinthisperiod | Numberofrestrictedsharesliftedduringthisperiod | Numberofrestrictedsharesattheendoftheperiod | Reasonforrestrictedsale | Dateofliftingrestrictions |
| HongjiangZHOU | 209,700 | 72,000 | 137,700 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| JianSUN | 277,500 | 70,500 | 207,000 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| JimingLI | 120,000 | 48,000 | 72,000 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| JianxunJIANG | 120,000 | 48,000 | 72,000 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| HuaJIANG | 127,500 | 63,500 | 64,000 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| BinPENG | 120,000 | 48,000 | 72,000 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| JianfuPAN | 70,000 | 30,000 | 40,000 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| QingkunKONG | 75,000 | 30,000 | 45,000 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| ShiluLIU | 70,000 | 30,000 | 40,000 | Restrictedsharescannotbesold | — | |
| ZhenboXIAO | 75,000 | 30,000 | 45,000 | Releasedrestrictedsharesbutcannotbesoldduetoseniorexecutivelock-in | — | |
| Otherkeyemployeeswhohadbeengrantedrestrictedshares | 3,617,851 | 1,738,225 | 1,879,626 | Restrictedsharescannotbesold | — | |
| Total | 4,882,551 | 2,208,225 | 2,674,326 | -- | -- |
2.Securitiesissuanceandlistingsituation
(1)Securitiesissuance(excludepreferredshare)duringreportperiod
?Applicable?Inapplicable
(2)ExplanationofchangeinCompany’stotalsharesandshareholdingstructureandchangeinCompany’sassetsandliabilitystructure?Applicable?Inapplicable
(3)Currentinternalemployeeshares?Applicable?Inapplicable
3.Situationforshareholdersandtheactualcontrollers
(1)ThenumberofshareholdersoftheCompanyandtheshareholdings
Unit：share
Totalshareholdersinthereportperiod
| Totalshareholdersinthereportperiod | 40,993 | Totalnumberofshareholdersbytheendoflastmonthbeforethedisclosuredayoftheannualreport | 41,524 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendofreportperiod | 0 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendoflastmonthbeforethedisclosuredayoftheannualreport | 0 | ||||||||
| Shareholdersholdingmorethan5%orthetop10shareholdersholdingsituation | |||||||||||||||
| NameofShareholders | Characterofshareholders | Percentage(%) | Shareshelduntiltheendofthereportperiod | Changesduringthereportperiod | Numberofrestrictedshares | Numberofunrestrictedshares | Pledged/markedorfrozen | ||||||||
| Sharestatus | Amount | ||||||||||||||
| YANTAICHANGYUGROUPCO.,LTD. | Domesticnon-statelegalperson | 52.56% | 345,473,856 | 0 | 0 | 0 | Inapplicable | 0 | |||||||
| FengdiJIANG | Domesticnaturalperson | 0.69% | 4,535,834 | -246,066 | 0 | 0 | Inapplicable | 0 | |||||||
| HairongHU | Domesticnaturalperson | 0.53% | 3,467,035 | 284,000 | 0 | 0 | Inapplicable | 0 | |||||||
| VANGUARDTOTALINTERNATIONALSTOCKINDEX | Foreignlegalperson | 0.52% | 3,446,137 | 0 | 0 | 0 | Inapplicable | 0 | |||||||
FUND
| FUND | person | ||||||||||
| SocialSecurityFund114 | Other | 0.52% | 3,425,055 | 0 | 0 | 0 | Inapplicable | 0 | |||
| HONGKONGSECURITIESCLEARINGCOMPANYLIMITED | Foreignlegalperson | 0.47% | 3,098,457 | 421,864 | 0 | 0 | Inapplicable | 0 | |||
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | Foreignlegalperson | 0.47% | 3,087,201 | 0 | 0 | 0 | Inapplicable | 0 | |||
| BankofCommunicationsCo.,Ltd.-QianhaiKaiyuanxiangheBond-typeSecuritiesInvestmentFund | Other | 0.46% | 3,017,569 | 3,017,569 | 0 | 0 | Inapplicable | 0 | |||
| SocialSecurityFund413 | Other | 0.46% | 3,000,060 | 390,000 | 0 | 0 | Inapplicable | 0 | |||
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | Foreignlegalperson | 0.37% | 2,461,494 | 0 | 0 | 0 | Inapplicable | 0 | |||
| Strategicinvestorsorlegalresultoftheplacementofnewsharestobecomeatop10shareholders(Ifhave)(PleaserefertoNote3) | No | ||||||||||
| Theexplanationfortheassociatedrelationshipandaccordantaction | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,whiletherelationshipamongtheothershareholdersisunknown. | ||||||||||
| Explanationoftheabove-mentionedshareholders’entrustment/fiduciaryvotingrightsandwaiverofthevotingrights | No | ||||||||||
| Specialexplanationfortheexistenceofaspecialrepurchaseaccountamongthetop10shareholders(Ifhave)(PleaserefertoNote3) | No | ||||||||||
| Thetop10shareholderswithshareswithouttradinglimitedcondition | |||||||||||
| NameofShareholders | Numberofshareswithouttradinglimitedconditionhelduntiltheendoftheyear | Typeofshare | |||||||||
| Typeofshare | Amount | ||||||||||
| YANTAICHANGYUGROUPCO.,LTD. | 345,473,856 | A | 345,473,856 | ||||||||
| FengdiJIANG | 4,535,834 | A | 4,535,834 | ||||||||
| HairongHU | 3,467,035 | A | 3,467,035 | ||||||||
| VANGUARDTOTALINTERNATIONALSTOCKINDEXFUND | 3,446,137 | B | 3,446,137 | ||||||||
| SocialSecurityFund114 | 3,425,055 | A | 3,425,055 | ||||||||
Thelendingofsharesbytheshareholdersholdingmorethan5%,toptenshareholdersandtop10shareholdersofunrestrictedsharesinthesecuritiesfinancingbusiness?Applicable?InapplicableThetoptenshareholdersandtop10shareholdersofunrestrictedshareshavechangedfromthepreviousperiodduetotheleading/restitutionreasons?Applicable?InapplicableWhetherornottheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditiontakeagreedrepurchasetradingduringthereportperiod□Yes?NoThereisnoagreedrepurchasetradingtakenbytheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditionduringthereportperiod.
HONGKONGSECURITIESCLEARINGCOMPANYLIMITED
| HONGKONGSECURITIESCLEARINGCOMPANYLIMITED | 3,098,457 | A | 3,098,457 |
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | 3,087,201 | B | 3,087,201 |
| BankofCommunicationsCo.,Ltd.-QianhaiKaiyuanxiangheBond-typeSecuritiesInvestmentFund | 3,017,569 | A | 3,017,569 |
| SocialSecurityFund413 | 3,000,060 | A | 3,000,060 |
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | 2,461,494 | B | 2,461,494 |
| Theexplanationfortheassociatedrelationshipandaccordantactionofthetop10shareholderswithunrestrictedshares,thetheassociatedrelationshipandaccordantactionbetweenthetop10shareholderswithunrestrictedsharesandthetop10shareholders | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,andtherelationshipamongtheothershareholdersisunknown. | ||
| Explanationforthetop10shareholderswhoinvolvedinfinancingactivitiesandstocktradingbusiness(Ifhave)(PleaserefertoNote4) | Thetop10shareholdersdonotinvolveinfinancingactivitiesandstocktradebusiness. | ||
(2)SituationforthecontrollingshareholdersoftheCompanyPropertyofholdingshareholders:PropertyofholdingmainbodyundefinedTypeofholdingshareholders:Legalrepresentative
Nameofcontrollingshareholder
| Nameofcontrollingshareholder | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiChangyuGroupCo.,Ltd. | HongjiangZHOU | 1997.04.27 | 913706002656458244 | Productionofwine,healthyliquor,distilledliquorandbeverages(onlyproducedbysubsidiaries,shareholdingcompaniesandbranches),salesoftheabove-mentionedproducts,cultivationofagriculturalproductsandexportbusinessunderthescopeofpermission. |
| Equitysituationfortheotherdomesticlistedcompaniescontrolledorsharedbythecontrollingshareholdersduringthereportperiod | No. | |||
Changesinthecontrollingshareholderduringthereportperiod?Applicable?InapplicableTherearenochangesinthecontrollingshareholderduringthereportperiod.
(3)SituationfortheactualcontrollersoftheCompanyanitspersonsactinginconcertPropertyofactualcontrollers:domesticotherinstitutions;foreignotherinstitutionsTypeofactualcontrollers:Legalrepresentative
| Nameofactualcontrollers | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiYuhuaInvestment&DevelopmentCo.,Ltd. | HuaJIANG | 2004.10.28 | 767792947 | Understatepermission,propertyinvestment,tenancyofmachineandfacility,wholesaleandretailofconstructionmaterial,chemicalproducts(chemicalhazardproductsexcluded),hardwareandelectronicalproducts,grapeplantation. |
| ILLVASaronnoHoldingS.p.a. | MARCOGIOVANNIFERRARI | 1984.07.25 | － | Directlyorindirectlyconducttheproductionanddistributionoffoodproducts(alcoholicproductsincluded)aswellasindustrial,commercial,financialandserviceactivitiesofanyotherkindsthroughjoint-stockcompaniesandorganizations. |
| InternationalFinanceCorporation | MakhtarDiop | 1956.07.25 | － | InternationalFinanceCorporationisoneofthemembersofWorldBank,mainlydedicatedtoinvestmentinprivatesectorsofdevelopingcountrieswhileprovidingtechnicalsupportandconsultationservice.Thecorporationisamultilateralfinancialinstitutionthatranksfirstintheworldintermsofprovidingcapitalstockandloanstodevelopingcountries.Itspurposeistopromotesustainableinvestmentsofprivatesectorsofdevelopingcountriesinordertoalleviatepovertyandimprovepeople’slife. |
YantaiGuofengInvestmentHoldingsGroupCo.,Ltd.
| YantaiGuofengInvestmentHoldingsGroupCo.,Ltd. | HaoWANG | 2009.02.12 | 684822338 | Operatingmanagementofstate-ownedpropertyright(stockright)authorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;Financing,investmentandoperatingmanagementofgovernmentprojects,suchasstrategicinvestmentandindustrialinvestmentandsoon;Capitaloperation(includingacquisition,reintegrationandtransfer,etc)ofstate-ownedpropertyrightandstate-ownedstockrightwithinthescopeofauthorization;Venturecapitalinvestmentbusiness;Agencyofventurecapitalinvestmentbusinessofotherventureinvestmententerprisesorindividuals;Participationintheestablishmentofventurecapitalinvestmententerprisesandventurecapitalinvestmentmanagementconsultantinstitutions;Investmentandfinancingserviceandconsultingbusiness;Investmentandfinancingconsultantbusiness;OtherbusinessauthorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;wholesaleandretailofnon-ferrousmetalmineralproducts,gold(spotgood),silver(spotgood),chemicalproducts(excludingdangerousgoods),batterymaterials(excludingdangerouschemicals);importandexportofgoodsandtechnologies.(Thebusinessscopedoesnotincludenationalpre-approvalprojectsandprojectsrestrictedbynationalindustrialpolicies;projectsthataresubjecttoapprovalaccordingtolawcanonlycarryoutbusinessactivitiesafterapprovalbyrelevantdepartments). |
| Equitysituationfortheotherdomesticlistedcompaniescontrolledbytheactualcontrollerduringthereportperiod | YantaiYuhuaInvestment&DevelopmentCo.,Ltd.didnotcontroltheequityofotherdomesticandforeignlistedcompaniesexcepttheCompanyduringthereportingperiod;ItisnotclearthatotheractualcontrollerscontroltheequityofotherdomesticandforeignlistedcompaniesotherthantheCompanyduringthereportingperiod. | |||
Changesoftheactualcontrollersduringthereportperiod?Applicable?InapplicableTherearenochangesinactualcontrollersduringthereportperiod.
IntroductionforpropertyrightandcontrolrelationsbetweentheCompanyanditsactualcontrollers
ActualcontrollercontrolstheCompanythroughatrustorotherassetmanagementways?Applicable?Inapplicable
(4)Thecompany’scontrollingshareholderorthelargestshareholderanditsconcertedactionperson’scumulativepledgedsharesaccountfor80%ofthecompany’ssharesheldbythem?Applicable?Inapplicable
(5)Otherinstitutionalshareholdersholdingmorethan10%shares?Applicable?Inapplicable
(6)Sharesreductionsituationsofholdingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects?Applicable?Inapplicable
4.ThespecificimplementationofsharerepurchaseduringthereportingperiodImplementationprogressofsharerepurchase?Applicable?Inapplicable
Plandisclosuretime
| Plandisclosuretime | Numberofsharestobeboughtback(shares) | Theproportionofthetotalsharecapital | Proposedboughtbackamount(CNY’0000) | Proposedbuybackperiod | Purposeofbuyback | Quantityboughtback(shares) | Theproportionofthequantityboughtbacktotheunderlyingsharesinvolvedintheequityincentiveplan(ifany) |
| 2025.04.18 | Nolessthan10millionshares,nomorethan15millionshares | 1.49%-2.23% | NotmorethanCNY100million | Nomorethan12monthsfromthedateofapprovalofthesharebuybackplanbytheShareholders’Meeting | Cancelled | 12,430,000 | 0% |
| 2025.07.26 | 2,153,772 | 0.33% | 3155 | — | Cancelled | 2,153,772 | 30% |
Implementationprogressofreducingsharerepurchasedbycentralizedbidding□Applicable?Inapplicable
5.Relatedsituationofpreferredshares?Applicable?InapplicableTherearenopreferredsharesduringthereportperiod.
VII.RelatedSituationofBonds
?Applicable?Inapplicable
VIII.FinancialReport
1.AuditReport
Typeofauditopinion
| Typeofauditopinion | Standardunqualifiedauditopinion |
| Datesignedonauditreport | April16,2026 |
| Auditagencyname | KPMGHuazhenLLP(LimitedLiabilityPartnership) |
| AuditreportNo. | KPMGHuazhenShenZiNo.2605381 |
| Certifiedpublicaccountant’sname | JiaWANG,ZhichaoLIU |
YantaiChangyuPioneerWineCo.,Ltd.
ENGLISHTRANSLATIONOFFINANCIALSTATEMENTSFORTHEYEAR1JANUARY2025TO31DECEMBER2025IFTHEREISANYCONFLICTBETWEENTHECHINESEVERSIONANDITSENGLISH
TRANSLATION,THECHINESEVERSIONWILLPREVAIL
AUDITOR’SREPORT
KPMGHuazhenShenZiNo.2605381AllShareholdersofYantaiChangyuPioneerWineCompanyLimited:
OpinionWehaveauditedtheaccompanyingfinancialstatementsofYantaiChangyuPioneerWineCompanyLimited(“YantaiChangyu”),whichcomprisetheconsolidatedbalancesheetandcompanybalancesheetasat31December2025,theconsolidatedincomestatementandcompanyincomestatement,theconsolidatedcashflowstatementandcompanycashflowstatement,theconsolidatedstatementofchangesinshareholders’equityandcompanystatementofchangesinshareholders’equityfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedfinancialpositionandcompanyfinancialpositionofYantaiChangyuasat31December2025,andofitsconsolidatedfinancialperformanceandcompanyfinancialperformanceanditsconsolidatedcashflowsandcompanycashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceofthePeople’sRepublicofChina.BasisforOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditingforCertifiedPublicAccountants(“CSAs”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentofYantaiChangyuinaccordancewiththeIndependenceStandardsforChineseCertifiedPublicAccountantsNo.1–IndependenceRequirementsforAuditandReviewEngagementsasapplicabletoauditsoffinancialstatementsofpublicinterestentities,andtheChinaCodeofEthicsforCertifiedPublicAccountants(“theCode”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2605381
KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsfortheyearended31December2025.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
RecognitionofSalesRevenuefromDistributors
| RecognitionofSalesRevenuefromDistributors | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”25and“V.Notestotheconsolidatedfinancialstatements”37. | |
| TheKeyAuditMatters | HowtheMatterwasAddressedinOurAudit |
| TheprincipalactivitiesofYantaiChangyuanditssubsidiaries(hereinafterreferredtoas“YantaiChangyuGroup”)includemanufactureandsalesofwine,brandyandsparklingwine.TherevenueofYantaiChangyuGroupismainlyderivedfromsalesofdistributors.AlldistributortransactiontermsadopttheunifiedtransactiontermsformulatedbyYantaiChangyuGroup.Basedonthecontractualagreementandthebusinessarrangement,YantaiChangyusellsproductstodistributorsandthetransferofproductownershipiscompletedandtherevenueisrecognisedwhenthegoodsaredeliveredtodistributorsandsignedforacceptance.AsrevenueisoneofthekeyperformanceindicatorsofYantaiChangyuGroup,thereisariskthatmanagementmayrecogniserevenueearlierorlaterinordertomeetspecificperformancetargetsorexpectations,therefore,theriskofcut-offmisstatementarisingfromdistributors’salesrevenueisidentifiedasakeyauditmatter. | Ourauditprocedurestoevaluaterevenuerecognitionofsalesrevenuefromdistributorsincludedthefollowing:?UnderstandandevaluatetheManagement’sdesignandoperationeffectivenessofkeyinternalcontrolsrelatedtodistributorsalesrevenuerecognition;?SelectsalescontractssignedbetweenYantaiChangyuanditsdistributors,examinethekeyclausesrelatedtothetransferofcontrolovergoods,andevaluatewhetherYantaiChangyu’saccountingpoliciesinrespectofrevenuerecognitioncomplywiththerequirementsofChinaAccountingStandards(“CAS”); |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2605381
KeyAuditMatters(continued)
RecognitionofSalesRevenuefromDistributors(continued)
| RecognitionofSalesRevenuefromDistributors(continued) | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”25and“V.Notestotheconsolidatedfinancialstatements”37. | |
| TheKeyAuditMatters | HowtheMatterwasAddressedinOurAudit |
| ?Agreetherevenueperthefinancialsystemwiththeorderandshippinginformationrecordedinthebusinesssystemforconsistency,identifyandinvestigateabnormaltransactionrecords(ifany);andonasamplingbasis,examinetheorderandshippinginformationinthebusinesssystemagainstoriginaldocumentssuchassalesordersandsigneddeliveryreceiptsforconsistency;?Onasamplingbasis,reconcilethesalestransactionbeforeandafterbalancesheetdatetorelevantsupportingfilessuchasrelevantorders,signeddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinappropriateaccountingperiod;?Onasamplingbasis,performconfirmationproceduresonthebalanceofaccountsreceivableasatthebalancesheetdateandthesalestransactionamountsduringthecurrentyear;?Checkthesalesrecordafterthebalancesheetdatetoidentifysignificantsalesreturnsandcheckrelevantsupportingfiles(Ifapplicable)inordertoevaluatewhetherrelevantrevenueisrecordedintheappropriateaccountingperiod;?Selectrevenueaccountingentriesthatmeetspecificriskcriteriaandcheckrelatedsupportingdocuments. | |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2605381
OtherInformationManagementofYantaiChangyuisresponsiblefortheotherinformation.Theotherinformationcomprisesalltheinformationincludedinthe2025annualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsManagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises,andforthedesign,implementationandmaintenanceofsuchinternalcontrolnecessarytoenablethatthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingYantaiChangyu’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidateYantaiChangyuortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingYantaiChangyu’sfinancialreportingprocess.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2605381Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements(continued)AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,
whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignaudit
proceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessof
accountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisof
accountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonYantaiChangyu’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycauseYantaiChangyutoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,
includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationofthe
entitiesorbusinessactivitieswithintheGrouptoexpressourauditopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheGroupaudit.Weremainsolelyresponsibleforourauditopinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2605381
Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements(continued)Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependenceand,whereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
KPMGHuazhenLLPCertifiedPublicAccountantsRegistered(Stamp)inthePeople’sRepublicofChina
WangJia(EngagementPartner)(Signatureandstamp)
Beijing,ChinaLiuZhichao
(Signatureandstamp)16April2026
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2025
(ExpressedinRenminbiYuan)
Note
| Note | 31December2025 | 31December2024 | |
| Assets | |||
| Currentassets | |||
| Cashatbankandonhand | V.1 | 1,890,611,804 | 1,797,848,130 |
| Billsreceivable | V.2 | 102,342 | 1,036,243 |
| Accountsreceivable | V.3 | 264,932,724 | 270,829,601 |
| Receivablesunderfinancing | V.4 | 228,073,841 | 230,960,211 |
| Prepayments | V.5 | 54,011,809 | 60,631,575 |
| Otherreceivables | V.6 | 127,713,309 | 264,598,394 |
| Inventories | V.7 | 2,836,077,209 | 2,904,070,556 |
| Othercurrentassets | V.8 | 74,160,936 | 80,383,241 |
| Totalcurrentassets | 5,475,683,974 | 5,610,357,951 | |
| Non-currentassets | |||
| Long-termequityinvestments | V.9 | 26,656,197 | 34,864,748 |
| Investmentproperties | V.10 | 19,900,228 | 21,960,451 |
| Fixedassets | V.11 | 5,308,778,632 | 5,551,671,795 |
| Constructioninprogress | V.12 | 4,313,088 | 10,177,372 |
| Bearerbiologicalassets | V.13 | 60,098,714 | 66,483,964 |
| Right-of-useassets | V.14 | 55,252,509 | 71,761,262 |
| Intangibleassets | V.15 | 512,930,637 | 527,706,383 |
| Goodwill | V.16 | 88,036,557 | 101,149,082 |
| Long-termdeferredexpenses | V.17 | 283,227,056 | 298,793,702 |
| Deferredtaxassets | V.18 | 215,680,654 | 221,993,099 |
| Othernon-currentassets | V.19 | 43,735 | 3,554,409 |
| Totalnon-currentassets | 6,574,918,007 | 6,910,116,267 | |
| Totalassets | 12,050,601,981 | 12,520,474,218 |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2025(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2025 | 31December2024 | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities | |||
| Short-termloans | V.20 | 240,674,788 | 216,140,346 |
| Accountspayable | V.21 | 321,932,168 | 417,510,439 |
| Contractliabilities | V.22 | 135,067,463 | 128,090,353 |
| Employeebenefitspayable | V.23 | 162,525,617 | 166,704,917 |
| Taxespayable | V.24 | 158,558,934 | 189,147,054 |
| Otherpayables | V.25 | 332,855,775 | 398,149,521 |
| Othercurrentliabilities | V.26 | 27,193,862 | 40,764,242 |
| Non-currentliabilitiesduewithinoneyear | V.27 | 75,440,910 | 79,949,769 |
| Totalcurrentliabilities | 1,454,249,517 | 1,636,456,641 | |
| Non-currentliabilities | ? | ? | |
| Long-termloans | V.28 | 52,374,840 | 50,637,203 |
| Leaseliabilities | V.29 | 19,437,830 | 27,542,829 |
| Deferredincome | V.30 | 19,386,932 | 25,938,817 |
| Deferredtaxliabilities | V.18 | 6,613,894 | 7,344,165 |
| Totalnon-currentliabilities | 97,813,496 | 111,463,014 | |
| Totalliabilities | 1,552,063,013 | 1,747,919,655 |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2025(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2025 | 31December2024 | |
| Liabilitiesandshareholders’equity(continued) | |||
| Shareholders’equity | |||
| Sharecapital | V.31 | 657,240,128 | 671,823,900 |
| Capitalreserve | V.32 | 364,048,502 | 482,143,547 |
| Less：Treasurystock | V.33 | 37,880,941 | 70,704,426 |
| Othercomprehensiveincome | V.34 | (16,329,710) | (39,714,972) |
| Surplusreserve | V.35 | 342,732,000 | 342,732,000 |
| Retainedearnings | V.36 | 9,037,437,598 | 9,232,928,370 |
| TotalequityattributabletoshareholdersoftheCompany | 10,347,247,577 | 10,619,208,419 | |
| Non-controllinginterests | 151,291,391 | 153,346,144 | |
| Totalshareholders’equity | 10,498,538,968 | 10,772,554,563 | |
| Totalliabilitiesandshareholders’equity | 12,050,601,981 | 12,520,474,218 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026..
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2025(ExpressedinRenminbiYuan)
Note
| Note | 31December2025 | 31December2024 | |
| Assets | |||
| Currentassets | |||
| Cashatbankandonhand | 1,068,117,647 | 876,557,848 | |
| Accountsreceivable | - | 226,796 | |
| Receivablesunderfinancing | XVII.1 | 49,858,915 | 13,110,297 |
| Prepayments | - | 5,526,029 | |
| Otherreceivables | XVII.2 | 706,617,690 | 952,762,563 |
| Inventories | 368,660,076 | 396,334,804 | |
| Othercurrentassets | 1,761,013 | - | |
| Totalcurrentassets | 2,195,015,341 | 2,244,518,337 | |
| Non-currentassets | ? | ? | |
| Long-termequityinvestments | XVII.3 | 7,639,851,962 | 7,689,232,919 |
| Investmentproperties | 19,900,228 | 21,960,451 | |
| Fixedassets | 138,604,795 | 176,158,046 | |
| Bearerbiologicalassets | 16,972,242 | 20,075,933 | |
| Right-of-useassets | 6,638,093 | 6,985,971 | |
| Intangibleassets | 67,060,514 | 69,806,357 | |
| Deferredtaxassets | 3,339,186 | 2,624,459 | |
| Othernon-currentassets | 1,812,430,000 | 1,864,430,003 | |
| Totalnon-currentassets | 9,704,797,020 | 9,851,274,139 | |
| Totalassets | 11,899,812,361 | 12,095,792,476 |
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2025(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2025 | 31December2024 | |
| Liabilitiesandshareholders’equity | |||
| Currentliabilities | |||
| Short-termloans | 50,000,000 | 50,000,000 | |
| Accountspayable | 35,959,493 | 92,990,317 | |
| Employeebenefitspayable | 64,506,520 | 68,033,360 | |
| Taxespayable | 3,040,948 | 2,010,276 | |
| Otherpayables | 565,391,567 | 584,915,573 | |
| Non-currentliabilitiesduewithinoneyear | 1,636,113 | 2,199,212 | |
| Totalcurrentliabilities | 720,534,641 | 800,148,738 | |
| Non-currentliabilities | ? | ? | |
| Leaseliabilities | 5,168,920 | 5,115,806 | |
| Deferredincome | 177,355 | 1,398,701 | |
| Totalnon-currentliabilities | 5,346,275 | 6,514,507 | |
| Totalliabilities | 725,880,916 | 806,663,245 |
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2025(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2025 | 31December2024 | |
| Liabilitiesandshareholders’equity(continued) | |||
| Shareholders’equity | |||
| Sharecapital | 657,240,128 | 671,823,900 | |
| Capitalreserve | 401,287,028 | 519,382,073 | |
| Less：Treasurystock | 37,880,941 | 70,704,426 | |
| Surplusreserve | 342,732,000 | 342,732,000 | |
| Retainedearnings | 9,810,553,230 | 9,825,895,684 | |
| Totalshareholders’equity | 11,173,931,445 | 11,289,129,231 | |
| Totalliabilitiesandshareholders’equity | 11,899,812,361 | 12,095,792,476 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026..
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2025(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| I.Operatingincome | V.37 | 2,988,667,522 | 3,277,278,347 |
| Less:Operatingcosts | V.37 | 1,329,825,001 | 1,392,602,399 |
| Taxesandsurcharges | V.38 | 261,069,400 | 273,762,629 |
| Sellinganddistributionexpenses | V.39 | 946,328,561 | 1,012,980,420 |
| Generalandadministrativeexpenses | V.40 | 300,804,447 | 313,911,881 |
| Researchanddevelopmentexpenses | 21,442,819 | 19,538,243 | |
| Financialexpenses | V.41 | (15,346,946) | 12,836,073 |
| Including:Interestexpenses | 18,097,903 | 34,261,730 | |
| Interestincome | 19,698,919 | 34,643,667 | |
| Add:Otherincome | V.42 | 35,137,675 | 52,613,910 |
| Investmentlosses | V.43 | (933,716) | (4,420,872) |
| Including:Lossesfrominvestmentassociatesandinjointventures | (1,975,116) | (4,420,872) | |
| Credit(losses)/reversal | V.44 | (19,176,723) | 1,818,835 |
| Impairmentlosses | V.45 | (8,025,330) | (7,465,500) |
| Gainfromdisposalofassets | V.46 | 307,134 | 132,116,926 |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2025(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| II.Operatingprofit | 151,853,280 | 426,310,001 | |
| Add:Non-operatingincome | V.47 | 7,706,024 | 4,977,930 |
| Less:Non-operatingexpenses | V.47 | 2,954,136 | 3,733,074 |
| III.Profitbeforeincometax | 156,605,168 | 427,554,857 | |
| Less:Incometaxexpenses | V.48 | 81,760,047 | 113,227,572 |
| IV.Netprofit | 74,845,121 | 314,327,285 | |
| (1)Netprofitclassifiedbycontinuityofoperations: | ? | ? | |
| 1.Netprofitfromcontinuingoperations | 74,845,121 | 314,327,285 | |
| 2.Netprofitfromdiscontinuedoperations | - | - | |
| (2)Netprofitclassifiedbyownership: | ? | ? | |
| 1.NetprofitattributabletoshareholdersoftheCompany | 71,291,303 | 305,210,999 | |
| 2.Non-controllingnetinterests | 3,553,818 | 9,116,286 | |
| V.Othercomprehensiveincome,netoftax | 25,903,830 | (27,197,923) | |
| (1)Othercomprehensiveincome(netoftax)attributabletoshareholdersoftheCompany | 23,385,262 | (24,930,295) | |
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | 23,385,262 | (24,930,295) | |
| (2)Othercomprehensiveincome(netoftax)attributabletonon-controllinginterests | 2,518,568 | (2,267,628) |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2025(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| VI.Totalcomprehensiveincomefortheyear | 100,748,951 | 287,129,362 | |
| (1)AttributabletoshareholdersoftheCompany | 94,676,565 | 280,280,704 | |
| (2)Attributabletonon-controllinginterests | 6,072,386 | 6,848,658 | |
| VII.Earningspershare: | ? | ? | |
| (1)Basicearningspershare | V.49 | 0.11 | 0.45 |
| (2)Dilutedearningspershare | V.49 | 0.11 | 0.45 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026..
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2025
(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| I.Operatingincome | XVII.4 | 485,013,763 | 562,078,771 |
| Less:Operatingcost | XVII.4 | 421,638,339 | 496,879,337 |
| Taxesandsurcharges | 16,168,537 | 18,450,000 | |
| Generalandadministrativeexpenses | 63,588,199 | 68,658,997 | |
| Researchanddevelopmentexpenses | 2,096,585 | 878,405 | |
| Financialnetincome | (11,149,070) | (13,673,283) | |
| Including:Interestexpenses | 2,940,013 | 2,019,519 | |
| Interestincome | 16,443,214 | 21,038,636 | |
| Add:Otherincome | 3,485,305 | 954,175 | |
| Investmentincome | XVII.5 | 314,258,098 | 368,167,007 |
| CreditImpairmentlosses | (8,166,363) | (245) | |
| AssetImpairmentlosses | (50,646,755) | (6,014,534) | |
| (Losses)/proceedsfromthedisposalofassets | (417,577) | 135,896,203 | |
| II.Operatingprofit | 251,183,881 | 489,887,921 | |
| Add:Non-operatingincome | 366,585 | 1,246,114 | |
| Less:Non-operatingexpenses | 825,571 | 2,409,239 |
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2025(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| III.Profitbeforeincometax | 250,724,895 | 488,724,796 | |
| Less:Incometaxexpenses | (714,726) | 3,458,480 | |
| IV.Netprofit | 251,439,621 | 485,266,316 | |
| (i)Netprofitfromcontinuingoperations | 251,439,621 | 485,266,316 | |
| (ii)Netprofitfromdiscontinuedoperations | - | - | |
| V.Othercomprehensiveincome,netoftax | - | - | |
| VI.Totalcomprehensiveincomefortheyear | 251,439,621 | 485,266,316 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026..
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2025(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 2,841,240,624 | 3,537,113,866 | |
| Refundoftaxes | 43,192,529 | 55,276,632 | |
| Proceedsfromotheroperatingactivities | V.50(1) | 50,297,960 | 81,036,973 |
| Sub-totalofcashinflows | 2,934,731,113 | 3,673,427,471 | |
| Paymentforgoodsandservices | 1,034,034,707 | 1,432,909,914 | |
| Paymenttoandforemployees | 422,285,265 | 497,180,417 | |
| Paymentofvarioustaxes | 581,651,375 | 704,434,463 | |
| Paymentforotheroperatingactivities | V.50(1) | 540,936,307 | 641,161,610 |
| Sub-totalofcashoutflows | 2,578,907,654 | 3,275,686,404 | |
| Netcashflowsfromoperatingactivities | V.51(1) | 355,823,459 | 397,741,067 |
| II.Cashflowsfrominvestingactivities: | ? | ? | |
| Proceedsfromdisposalofinvestments | V.50(2) | 93,200,000 | 464,200,000 |
| Investmentreturnsreceived | 2,169,162 | 4,936,198 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 146,329,929 | 42,303,732 | |
| Netproceedsfromdisposalofsubsidiaries | 25,831,272 | - | |
| Sub-totalofcashinflows | 267,530,363 | 511,439,930 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 31,471,276 | 94,561,357 | |
| Paymentforacquisitionofinvestments | 60,200,000 | 289,650,000 | |
| Sub-totalofcashoutflows | 91,671,276 | 384,211,357 | |
| Netcashflowsfrominvestingactivities | 175,859,087 | 127,228,573 |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2025(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| III.Cashflowsfromfinancingactivities: | ? | ||
| Proceedsfromborrowings | 527,318,069 | 507,959,260 | |
| Sub-totalofcashinflows | 527,318,069 | 507,959,260 | |
| Repaymentsofborrowings | 492,835,580 | 670,128,889 | |
| Paymentfordividends,profitdistributionsorinterest | 293,007,117 | 377,462,001 | |
| Paymentforotherfinancingactivities | V.50(3) | 153,151,134 | 227,313,486 |
| Sub-totalofcashoutflows | 938,993,831 | 1,274,904,376 | |
| Netcashflowsfromfinancingactivities | (411,675,762) | (766,945,116) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | 1,393,754 | (3,452,725) | |
| V.Netincrease/(decrease)incashandcashequivalents | V.51(1) | 121,400,538 | (245,428,201) |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 1,717,727,551 | 1,963,155,752 | |
| VI.Cashandcashequivalentsattheendoftheyear | V.51(1) | 1,839,128,089 | 1,717,727,551 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026..
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2025(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 527,872,771 | 669,302,405 | |
| Proceedsfromotheroperatingactivities | 6,980,197 | 14,799,484 | |
| Sub-totalofcashinflows | 534,852,968 | 684,101,889 | |
| Paymentforgoodsandservices | 473,572,836 | 452,049,677 | |
| Paymenttoandforemployees | 47,267,132 | 55,724,885 | |
| Paymentofvarioustaxes | 25,987,004 | 41,659,134 | |
| Paymentforotheroperatingactivities | 10,097,207 | 20,393,900 | |
| Sub-totalofcashoutflows | 556,924,179 | 569,827,596 | |
| Netcashflowsfromoperatingactivities | (22,071,211) | 114,274,293 | |
| II.Cashflowsfrominvestingactivities: | |||
| Proceedsfromdisposalofinvestments | 93,200,000 | 464,200,000 | |
| Investmentreturnsreceived | 433,300,050 | 243,103,205 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 136,511,028 | 1,190,693 | |
| Proceedsfromborrowingstosubsidiaries | 54,000,000 | 140,000,000 | |
| Sub-totalofcashinflows | 717,011,078 | 848,493,898 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 2,623,291 | 5,532,306 | |
| Paymentforacquisitionofinvestments | 60,200,000 | 288,650,000 | |
| Netpaymentforacquisitionofsubsidiariesandotherbusinessunits | - | 65,506,916 | |
| Cashpaidtosubsidiaries | 2,000,000 | 205,200,000 | |
| Sub-totalofcashoutflows | 64,823,291 | 564,889,222 | |
| Netcashflowsfrominvestingactivities | 652,187,787 | 283,604,676 |
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2025(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2025 | 2024 | |
| III.Cashflowsfromfinancingactivities: | |||
| Proceedsfromborrowings | 50,000,000 | 50,000,000 | |
| Sub-totalofcashinflows | 50,000,000 | 50,000,000 | |
| Repaymentsofborrowings | 50,000,000 | 100,000,000 | |
| Paymentfordividendsorinterest | 269,722,088 | 347,931,466 | |
| Paymentforotherfinancingactivities | 135,834,689 | 190,324,198 | |
| Sub-totalofcashoutflows | 455,556,777 | 638,255,664 | |
| Netcashflowsfromfinancingactivities | (405,556,777) | (588,255,664) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | - | - | |
| V.Netincrease/(decrease)incashandcashequivalents | 224,559,799 | (190,376,695) | |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 797,907,849 | 988,284,544 | |
| VI.Cashandcashequivalentsattheendoftheyear | 1,022,467,648 | 797,907,849 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026..
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equityfortheyearended31December2025
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | |||||||
| Sharecapital | Capitalreserve | Less:Treasurystock | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 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 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| 1.Totalcomprehensiveincome | - | - | - | 23,385,262 | - | 71,291,303 | 94,676,565 | 6,072,386 | 100,748,951 | |
| 2.Shareholders’contributionsanddecreaseofcapital | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| (1).Effectsofrestrictedshareincentiveplan | V.31 | (2,153,772) | (30,669,713) | 32,823,485 | - | - | - | - | - | - |
| (2).Effectsofsharerepurchased | V.32 | (12,430,000) | (87,425,332) | - | - | - | - | (99,855,332) | - | (99,855,332) |
| 3.Appropriationofprofits | ||||||||||
| (1).Distributionstoshareholders | V.36 | - | - | - | - | - | (266,782,075) | (266,782,075) | (1,292,872) | (268,074,947) |
| (2).Theimpactofsubsidiaryderegistrationandliquidation | - | - | - | - | - | - | - | (6,834,267) | (6,834,267) | |
| III.Balanceattheendoftheyear | 657,240,128 | 364,048,502 | (37,880,941) | (16,329,710) | 342,732,000 | 9,037,437,598 | 10,347,247,577 | 151,291,391 | 10,498,538,968 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026..
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equity(continued)fortheyearended31December2024
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | |||||||
| Sharecapital | Capitalreserve | Less:Treasurystock | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 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.Changesinequityduringtheyear | ? | ? | ? | ? | ? | ? | ? | ? | ||
| 1.Totalcomprehensiveincome | - | - | - | (24,930,295)? | -? | 305,210,999? | 280,280,704? | 6,848,658? | 287,129,362? | |
| 2.Shareholders’contributionsanddecreaseofcapital | ||||||||||
| (1).Effectsofrestrictedshareincentiveplan | V.31 | (425,666) | (10,077,952) | 32,707,493 | - | - | - | 22,203,875 | - | 22,203,875 |
| (2).Acquisitionofnon-controllinginterests | VIII.2 | - | (780,883) | - | - | - | - | (780,883) | (1,102,655) | (1,883,538) |
| (3).Effectsofsharerepurchased | V.32 | (19,999,993) | (158,084,325) | - | - | - | - | (178,084,318) | - | (178,084,318) |
| 3.Appropriationofprofits | ? | ? | ? | ? | ? | ? | ? | ? | ||
| Distributionstoshareholders | V.36 | - | - | - | - | - | (345,911,947) | (345,911,947) | (1,424,666) | (347,336,613) |
| III.Balanceattheendoftheyear | 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 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026..
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2025(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Less:Treasurystock | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 671,823,900 | 519,382,073 | (70,704,426) | 342,732,000 | 9,825,895,684 | 11,289,129,231 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | ? | |
| 1.Totalcomprehensiveincome | - | - | - | - | 251,439,621 | 251,439,621 | |
| 2.Contributionsbyowners | ? | ? | ? | ? | ? | ? | |
| (1)Effectsofrestrictedshareincentiveplan | (2,153,772) | (30,669,713) | 32,823,485 | - | - | - | |
| (2)Effectsofsharerepurchased | (12,430,000) | (87,425,332) | - | - | - | (99,855,332) | |
| 3.Appropriationofprofits | ? | ? | ? | ? | ? | ? | |
| Distributionstoshareholders | - | - | - | - | (266,782,075) | (266,782,075) | |
| III.Balanceattheendoftheyear | 657,240,128 | 401,287,028 | (37,880,941) | 342,732,000 | 9,810,553,230 | 11,173,931,445 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026.
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2024(continued)
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Less:Treasurystock | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 692,249,559 | 687,544,350 | (103,411,919) | 342,732,000 | 9,686,541,315 | 11,305,655,305 | |
| II.Changesinequityduringtheyear | ? | ? | ? | ? | ? | ||
| 1.Totalcomprehensiveincome | -? | -? | - | -? | 485,266,316 | 485,266,316 | |
| 2.Contributionsbyowners | |||||||
| (1)Effectsofrestrictedshareincentiveplan | (425,666) | (10,077,952) | 32,707,493 | -? | -? | 22,203,875 | |
| (2)Effectsofsharerepurchased | (19,999,993) | (158,084,325) | -? | -? | -? | (178,084,318) | |
| 3.Appropriationofprofits | ? | ? | ? | ? | ? | ||
| Distributionstoshareholders | -? | -? | -? | -? | (345,911,947) | (345,911,947) | |
| III.Balanceattheendoftheyear | 671,823,900 | 519,382,073 | (70,704,426) | 342,732,000 | 9,825,895,684 | 11,289,129,231 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon16April2026.
| ZhouHongjiangLegalRepresentative | GuoCuimeiThepersonin-chargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
YantaiChangyuPioneerWineCompanyLimitedNotestothefinancialstatements(ExpressedinRenminbiYuanunlessotherwiseindicated)I.Companystatus
YantaiChangyuPioneerWineCo.,Ltd.(the“Company”orthe“JointStockCompany”)wasincorporatedasajointstocklimitedcompanyinaccordancewiththeCompanyLawofthePeople’sRepublicofChina(the“PRC”)inareorganisationcarriedoutbyYantaiChangyuGroupCo.,Ltd.(“ChangyuGroup”),inwhichChangyuGroupCompanyinjectedcertainassetsandliabilitiesinrelationtothewine,brandy,andsparklingwineproductionandsalesbusinessestotheCompany.TheCompanyanditssubsidiaries(the“Group”)areprincipallyengagedintheproductionandsalesofwine,brandy,sparklingwine,grapegrowingandacquisition,aswellastravelresourcedevelopment,etc..RegistrationplaceoftheCompanyisYantai,Shandong.HeadquarteroftheCompanyislocatedatNo.56DaMaLu,ZhifuDistrict,Yantai,Shandong,PRC.Asat31December2025thetotalsharesissuedbytheCompanyamountsto657,240,128shares.PleaserefertoNoteV.31indetail.TheholdingcompanyoftheGroupisChangyuGroupCompany,whichisjointlycontrolledbyYantaiGuoFengInvestmentHoldingLtd.,ILLVASARONNOHOLDINGSPA,InternationalFinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited.Thefinancialstatementshavebeenauthorisedbytheboardofdirectorson16April2026.AccordingtotheCompany’sarticlesofassociation,thefinancialstatementswillbereviewedbyshareholdersontheshareholder’smeeting.Forconsolidationscopeoftheyear,pleaserefertoNoteVIII“Equityinotherentities”indetail.II.Basisofpreparation
Thefinancialstatementshavebeenpreparedonthegoingconcernbasis.III.Significantaccountingpoliciesandaccountingestimates1Statementofcompliance
Thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsof
AccountingStandardsforBusinessEnterprisesorreferredtoasChinaAccountingStandards
(“CAS”)issuedbytheMOF.Thesefinancialstatementspresenttrulyandcompletelythe
consolidatedfinancialpositionandfinancialpositionoftheCompanyasat31December
2025,andtheconsolidatedfinancialperformanceandfinancialperformanceandthe
consolidatedcashflowsandcashflowsoftheCompanyfortheyearthenended.
Thesefinancialstatementsalsocomplywiththedisclosurerequirementsof“Regulationon
thePreparationofInformationDisclosuresbyCompaniesIssuingSecurities,No.15:General
RequirementsforFinancialReports”asrevisedbytheChinaSecuritiesRegulatory
Commission(“CSRC”)in2023.
2Accountingperiod
Theaccountingperiodisfrom1Januaryto31December.3Operatingcycle
TheCompanytakestheperiodfromtheacquisitionofassetsforprocessingtountilthe
ultimaterealisationofcashorcashequivalentsasanormaloperatingcycle.Theoperating
cycleoftheCompanyis12months.4Functionalcurrency
Renminbi(“RMB”)isthecurrencyoftheprimaryeconomicenvironmentinwhichthe
Companyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomestic
subsidiarieschooseRMBastheirfunctionalcurrency.Overseassubsidiariesofthe
CompanyadoptEuro,ChileanPesoandAustralianDollarastheirfunctionalcurrenciesonthe
basisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadopts
RMBtoprepareitsfinancialstatements.Theforeigncurrencyfinancialstatementsof
overseassubsidiarieshavebeentranslatedbasedontheaccountingpolicysetoutinNote
III.9inpreparingthesefinancialstatements.5Methodusedtodeterminethematerialitythresholdandthebasisforselection
Item
| Item | Materialitythreshold |
| Significantotherpayables/accountspayablewithageingofmorethanoneyear | Amountoftheindividualotherpayables/accountspayablewithageingofmorethan1yearexceeds0.5%oftheGroup’stotalliabilities |
| Significantconstructionprojectsinprogress | Carryingamountoftheindividualconstructioninprogressexceeds0.5%oftheGroup’stotalnon-currentassets |
| Significantnon-wholly-ownedsubsidiaries | Carryingamountofnetassetsattributabletonon-controllingshareholdersofthenon-wholly-ownedsubsidiariesexceeds0.5%oftheGroup’snetassets |
| Significantjointarrangementsorassociates | Thecarryingamountoflong-termequityinvestmentsofanindividualjointarrangementoranassociateexceeds0.5%oftheGroup’snetassets |
| Significantcashflowsfrominvestingactivities | Amountoftheindividualcashflowexceedsexceeds0.5%oftheGroup’stotalassets |
6Accountingtreatmentsforbusinesscombinationsinvolvingentitiesundercommoncontrol
andnotundercommoncontrol
AtransactionconstitutesabusinesscombinationwhentheGroupobtainscontrolofoneor
moreentities(oragroupofassetsornetassets).Businesscombinationisclassifiedas
eitherbusinesscombinationsinvolvingenterprisesundercommoncontrolorbusinesscombinationsnotinvolvingenterprisesundercommoncontrol.Foratransactionnotinvolvingenterprisesundercommoncontrol,theacquirerdetermineswhetheracquiredsetofassetsconstituteabusiness.TheGroupmayelecttoapplythesimplifiedassessmentmethod,theconcentrationtest,todeterminewhetheranacquiredsetofassetsisnotabusiness.Iftheconcentrationtestismetandthesetofassetsisdeterminednottobeabusiness,nofurtherassessmentisneeded.Iftheconcentrationtestisnotmet,theGroupshallperformtheassessmentaccordingtotheguidanceonthedeterminationofabusiness.Whenthesetofassetsthegroupacquireddoesnotconstituteabusiness,acquisitioncostsshouldbeallocatedtoeachidentifiableassetsandliabilitiesattheiracquisition?datefairvalues.Itisnotrequiredtoapplytheaccountingofbusinesscombinationdescribedasbelow.
(1)Businesscombinationsinvolvingentitiesundercommoncontrol
Abusinesscombinationinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination,andthatcontrolisnottransitory.Theassetsacquiredandliabilitiesassumedaremeasuredbasedontheircarryingamountsintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweenthecarryingamountsharesofthenetassetsacquiredandtheconsiderationpaidforthecombination(orthetotalparvalueofsharesissued)isadjustedagainstsharepremiuminthecapitalreserve,withanyexcessadjustedagainstthesurplusreservesandretainedearningssequentially.Anycostsdirectlyattributabletothecombinationarerecognisedinprofitorlosswhenincurred.Thecombinationdateisthedateonwhichonecombiningentityobtainscontrolofothercombiningentities.
(2)Businesscombinationsinvolvingentitiesnotundercommoncontrol
Abusinesscombinationinvolvingentitiesnotundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination.Where(1)theaggregateoftheacquisition-datefairvalueofassetstransferred(includingtheacquirer’spreviouslyheldequityinterestintheacquiree),liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree,exceeds(2)theacquirer’sinterestintheacquisition-datefairvalueoftheacquiree’sidentifiablenetassets,afterconsideringtheimpactofrelevantdeferredincometax,thedifferenceisrecognisedasgoodwill(seeNoteIII.19).If(1)islessthan(2),thedifferenceisrecognisedinprofitorlossforthecurrentperiod.Otheracquisition-relatedcostsareexpensedwhenincurred.Theacquiree’sidentifiableasset,liabilitiesandcontingentliabilities,iftherecognitioncriteriaaremet,arerecognisedbytheGroupattheiracquisition-datefairvalue.Theacquisitiondateisthedateonwhichtheacquirerobtainscontroloftheacquiree.Forabusinesscombinationinvolvingentitiesnotundercommoncontrolandachievedinstages,theGroupremeasuresitspreviously-heldequityinterestintheacquireetoitsacquisition-datefairvalueandrecognisesanyresultingdifferencebetweenthefairvalueandthecarryingamountasinvestmentincomeorothercomprehensiveincomeforthecurrentperiod.Inaddition,anyamountrecognisedinothercomprehensiveincomethatmaybereclassifiedtoprofitorloss,inpriorreportingperiodsrelatingtothepreviously-heldequityinterest,andanyotherchangesintheowners’equityunderequityaccounting,aretransferred
toinvestmentincomeintheperiodinwhichtheacquisitionoccurs(seeNoteIII.12(2)(b)).Ifequityinterestsoftheacquireeheldbeforeacquisition-datewereequityinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,othercomprehensiveincomerecognisedshallbemovedtoretainedearningsonacquisition-date.7Criteriaofcontrolandpreparationofconsolidatedfinancialstatements
(1)Generalprinciples
ThescopeofconsolidatedfinancialstatementsisbasedoncontrolandtheconsolidatedfinancialstatementscomprisetheCompanyanditssubsidiaries.Controlexistswhentheinvestorhasalloffollowing:powerovertheinvestee;exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.WhenassessingwhethertheGrouphaspower,onlysubstantiverights(heldbytheGroupandotherparties)areconsidered.Thefinancialposition,financialperformanceandcashflowsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.Non-controllinginterestsarepresentedseparatelyintheconsolidatedbalancesheetwithinshareholders’equity.Netprofitorlossattributabletonon-controllingshareholdersispresentedseparatelyintheconsolidatedincomestatementbelowthenetprofitlineitem.Totalcomprehensiveincomeattributabletonon-controllingshareholdersispresentedseparatelyintheconsolidatedincomestatementbelowthetotalcomprehensiveincomelineitem.Whentheamountoflossforthecurrentperiodattributabletothenon-controllingshareholdersofasubsidiaryexceedsthenon-controllingshareholders’shareoftheopeningowners’equityofthesubsidiary,theexcessisstillallocatedagainstthenon-controllinginterests.WhentheaccountingperiodoraccountingpoliciesofasubsidiaryaredifferentfromthoseoftheCompany,theCompanymakesnecessaryadjustmentstothefinancialstatementsofthesubsidiarybasedontheCompany’sownaccountingperiodoraccountingpolicies.Intra-groupbalancesandtransactions,andanyunrealisedprofitorlossarisingfromintra-grouptransactions,areeliminatedwhenpreparingtheconsolidatedfinancialstatements.Unrealisedlossesresultingfromintra-grouptransactionsareeliminatedinthesamewayasunrealisedgains,unlesstheyrepresentimpairmentlossesthatarerecognisedinthefinancialstatements.
(2)Subsidiariesacquiredthroughabusinesscombination
Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesundercommoncontrol,thefinancialstatementsofthesubsidiaryareincludedintheconsolidatedfinancialstatementsbasedonthecarryingamountsoftheassetsandliabilitiesofthesubsidiaryinthefinancialstatementsoftheultimatecontrollingpartyasifthecombinationhadoccurredatthedatethattheultimatecontrollingpartyfirstobtainedcontrol.Theopeningbalancesandthecomparativefiguresoftheconsolidatedfinancialstatementsarealsorestated.Whereasubsidiarywasacquiredduringthereportingperiod,throughabusinesscombinationinvolvingentitiesnotundercommoncontrol,theidentifiableassetsandliabilitiesoftheacquiredsubsidiariesareincludedinthescopeofconsolidationfromthedatethatcontrolcommences,basedonthefairvalueofthoseidentifiableassetsandliabilitiesattheacquisitiondate.
(3)Disposalofsubsidiaries
WhentheGrouplosescontroloverasubsidiary,anyresultingdisposalgainsorlossesarerecognisedasinvestmentincomeforthecurrentperiod.Theremainingequityinvestmentisre-measuredatitsfairvalueatthedatewhencontrolislost,anyresultinggainsorlossesarealsorecognisedasinvestmentincomeforthecurrentperiod.WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,thefollowingareconsideredtodeterminewhethertheGroupshouldaccountforthemultipletransactionsasabundledtransaction:
-arrangementsareenteredintoatthesametimeorincontemplationofeachother;-arrangementsworktogethertoachieveanoverallcommercialeffect;-theoccurrenceofonearrangementisdependentontheoccurrenceofatleastoneother
arrangement;-onearrangementconsideredonitsownisnoteconomicallyjustified,butitiseconomically
justifiedwhenconsideredtogetherwithotherarrangements.Ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposalofequityinvestmentinsubsidiarieswherecontrolisretained(seeNoteIII.7(4)).Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognisedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.
(4)Changesinnon-controllinginterests
WheretheCompanyacquiresanon-controllinginterestfromasubsidiary’snon-controllingshareholdersordisposesofaportionofaninterestinasubsidiarywithoutachangeincontrol,thedifferencebetweentheproportioninterestsofthesubsidiary’snetassetsbeingacquiredordisposedandtheamountoftheconsiderationpaidorreceivedisadjustedtothecapitalreserve(sharepremium)intheconsolidatedbalancesheet,withanyexcessadjustedtothesurplusreservesandretainedearningssequentially.8Cashandcashequivalents
Cashandcashequivalentscomprisecashonhand,depositsthatcanbereadilywithdrawondemand,andshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandaresubjecttoaninsignificantriskofchangeinvalue.9Foreigncurrencytransactionsandtranslationofforeigncurrencyfinancialstatements
WhentheGroupreceivescapitalinforeigncurrenciesfrominvestors,thecapitalistranslatedtoRenminbiatthespotexchangerateatthedateofthereceipt.Otherforeigncurrencytransactionsare,oninitialrecognition,translatedtoRenminbiatthespotexchangerates.
MonetaryitemsdenominatedinforeigncurrenciesaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Theresultingexchangedifferencesaregenerallyrecognisedinprofitorloss,unlesstheyarisefromthere-translationoftheprincipalandinterestofspecificborrowingsfortheacquisitionandconstructionofqualifyingassets(seeNoteIII.16).Non-monetaryitemsthataremeasuredathistoricalcostinforeigncurrenciesaretranslatedtoRenminbiusingtheexchangerateatthetransactiondate.Intranslatingthefinancialstatementsofaforeignoperation,assetsandliabilitiesofforeignoperationaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Equityitems,excludingretainedearningsandthetranslationdifferencesinothercomprehensiveincome,aretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.IncomeandexpensesintheincomestatementaretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.Theresultingtranslationdifferencesarerecognisedinothercomprehensiveincome.Thetranslationdifferencesaccumulatedinothercomprehensiveincomewithrespecttoaforeignoperationaretransferredtoprofitorlossintheperiodwhentheforeignoperationisdisposed.10Financialinstruments
Financialinstrumentsincludecashatbankandonhand,investmentsindebtandequitysecuritiesotherthanthoseclassifiedaslong-termequityinvestments(seeNoteIII.12),receivables,payables,andborrowingsandsharecapital.
(1)Recognitionandinitialmeasurementoffinancialassetsandfinancialliabilities
AfinancialassetorfinancialliabilityisrecognisedinthebalancesheetwhentheGroupbecomesapartytothecontractualprovisionsofafinancialinstrument.Afinancialassetsandfinancialliabilitiesismeasuredinitiallyatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,anyrelateddirectlyattributabletransactioncostsarechargedtoprofitorloss;forothercategoriesoffinancialassetsandfinancialliabilities,anyrelateddirectlyattributabletransactioncostsareincludedintheirinitialcosts.Atradereceivable,withoutsignificantfinancingcomponentorpracticalexpedientappliedforoneyearorlesscontracts,isinitiallymeasuredatthetransactionpriceinaccordancewithNoteIII.25.
(2)Classificationandsubsequentmeasurementoffinancialassets
(a)Classificationoffinancialassets
Theclassificationoffinancialassetsisgenerallybasedonthebusinessmodelinwhichafinancialassetismanagedanditscontractualcashflowcharacteristics.Oninitialrecognition,afinancialassetisclassifiedasmeasuredatamortisedcost,atfairvaluethroughothercomprehensiveincome(“FVOCI”),oratfairvaluethroughprofitorloss(“FVTPL”).FinancialassetsarenotreclassifiedsubsequenttotheirinitialrecognitionunlesstheGroupchangesitsbusinessmodelformanagingfinancialassetsinwhichcaseallaffectedfinancialassetsarereclassifiedonthefirstdayofthefirstreportingperiodfollowingthechangeinthebusinessmodel.
AfinancialassetismeasuredatamortisedcostifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveistoholdassetstocollect
contractualcashflows;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolely
paymentsofprincipalandinterestontheprincipalamountoutstanding.AdebtinvestmentismeasuredatFVOCIifitmeetsbothofthefollowingconditionsandisnotdesignatedasatFVTPL:
-itisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollecting
contractualcashflowsandsellingfinancialassets;and-itscontractualtermsgiveriseonspecifieddatestocashflowsthataresolely
paymentsofprincipalandinterestontheprincipalamountoutstanding.Oninitialrecognitionofanequityinvestmentthatisnotheldfortrading,theGroupmayirrevocablyelecttopresentsubsequentchangesintheinvestment’sfairvalueinothercomprehensiveincome.Thiselectionismadeonaninvestment-by-investmentbasis.Theinstrumentmeetsthedefinitionofequityfromtheperspectiveoftheissuer.AllfinancialassetsnotclassifiedasmeasuredatamortisedcostorFVOCIasdescribedabovearemeasuredatFVTPL.Oninitialrecognition,theGroupmayirrevocablydesignateafinancialassetthatotherwisemeetstherequirementstobemeasuredatamortisedcostoratFVOCIasatFVTPLifdoingsoeliminatesorsignificantlyreducesanaccountingmismatchthatwouldotherwisearise.ThebusinessmodelreferstohowtheGroupmanagesitsfinancialassetsinordertogeneratecashflows.Thatis,theGroup’sbusinessmodeldetermineswhethercashflowswillresultfromcollectingcontractualcashflows,sellingfinancialassetsorboth.TheGroupdeterminesthebusinessmodelformanagingthefinancialassetsaccordingtothefactsandbasedonthespecificbusinessobjectiveformanagingthefinancialassetsdeterminedbytheGroup’skeymanagementpersonnel.Inassessingwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterest,theGroupconsidersthecontractualtermsoftheinstrument.Forthepurposesofthisassessment,‘principal’isdefinedasthefairvalueofthefinancialassetoninitialrecognition.‘Interest’isdefinedasconsiderationforthetimevalueofmoneyandforthecreditriskassociatedwiththeprincipalamountoutstandingduringaparticularperiodoftimeandforotherbasiclendingrisksandcosts,aswellasaprofitmargin.TheGroupalsoassesseswhetherthefinancialassetcontainsacontractualtermthatcouldchangethetimingoramountofcontractualcashflowssuchthatitwouldnotmeetthiscondition.(b)Subsequentmeasurementoffinancialassets
-FinancialassetsatFVTPL
Thesefinancialassetsaresubsequentlymeasuredatfairvalue.Netgainsand
losses,includinganyinterestordividendincome,arerecognisedinprofitorloss
unlessthefinancialassetsarepartofahedgingrelationship.
-Financialassetsatamortisedcost
Theseassetsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Againorlossonafinancialassetthatismeasuredatamortisedcostandisnotpartofahedgingrelationshipshallberecognisedinprofitorlosswhenthefinancialassetisderecognised,reclassified,throughtheamortisationprocessorinordertorecogniseimpairmentgainsorlosses.-DebtinvestmentsatFVOCI
Theseassetsaresubsequentlymeasuredatfairvalue.Interestincomecalculatedusingtheeffectiveinterestmethod,impairmentandforeignexchangegainsandlossesarerecognisedinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoprofitorloss.-EquityinvestmentsatFVOCI
Theseassetsaresubsequentlymeasuredatfairvalue.Dividendsarerecognisedasincomeinprofitorloss.Othernetgainsandlossesarerecognisedinothercomprehensiveincome.Onderecognition,gainsandlossesaccumulatedinothercomprehensiveincomearereclassifiedtoretainedearnings.
(3)Classificationandsubsequentmeasurementoffinancialliabilities
FinancialliabilitiesareclassifiedasmeasuredatFVTPLoramortisedcostbytheGroup.-FinancialliabilitiesatFVTPL
AfinancialliabilityisclassifiedasatFVTPLifitisclassifiedasheld-for-trading(includingderivativefinancialliability)oritisdesignatedassuchoninitialrecognition.FinancialliabilitiesatFVTPLaresubsequentlymeasuredatfairvalueandnetgainsandlosses,includinganyinterestexpense,arerecognisedinprofitorloss,unlessthefinancialliabilitiesarepartofahedgingrelationship.-Financialliabilitiesatamortisedcost
Thesefinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
(4)Offsetting
Financialassetsandfinancialliabilitiesaregenerallypresentedseparatelyinthebalancesheet,andarenotoffset.However,afinancialassetandafinancialliabilityareoffsetandthenetamountispresentedinthebalancesheetwhenbothofthefollowingconditionsaresatisfied:
-TheGroupcurrentlyhasalegallyenforceablerighttosetofftherecognisedamounts;-TheGroupintendseithertosettleonanetbasis,ortorealisethefinancialassetandsettlethefinancialliabilitysimultaneously.
(5)Derecognitionoffinancialassetsandfinancialliabilities
Financialassetisderecognisedwhenoneofthefollowingconditionsismet:
-theGroup’scontractualrightstothecashflowsfromthefinancialassetexpire;-thefinancialassethasbeentransferredandtheGrouptransferssubstantiallyalloftherisksandrewardsofownershipofthefinancialasset;or;-thefinancialassethasbeentransferred,althoughtheGroupneithertransfersnorretains
substantiallyalloftherisksandrewardsofownershipofthefinancialasset,itdoesnotretaincontroloverthetransferredasset.Whereatransferofafinancialassetinitsentiretymeetsthecriteriaforderecognition,thedifferencebetweenthetwoamountsbelowisrecognisedinprofitorloss:
-thecarryingamountofthefinancialassettransferredmeasuredatthedateof
derecognition;-thesumoftheconsiderationreceivedfromthetransferand,whenthetransferredfinancialassetisadebtinvestmentatFVOCI,anycumulativegainorlossthathasbeenrecogniseddirectlyinothercomprehensiveincomeforthepartderecognised.TheGroupderecognisesafinancialliability(orpartofit)onlywhenitscontractualobligation(orpartofit)isextinguished.
(6)Impairment
TheGrouprecogniseslossallowancesforexpectedcreditloss(ECL)on:
-financialassetsmeasuredatamortisedcost;-financialinvestmentsatfairvaluethroughothercomprehensiveincome.Financialassetsmeasuredatfairvalue,includingdebtinvestmentsorequitysecuritiesatFVPL,equitysecuritiesdesignatedatFVOCIandderivativefinancialassets,arenotsubjecttotheECLassessment.MeasurementofECLsECLsareaprobability-weightedestimateofcreditlosses.Creditlossesaremeasuredasthepresentvalueofallcashshortfalls(i.e.thedifferencebetweenthecashflowsduetotheentityinaccordancewiththecontractandthecashflowsthattheGroupexpectstoreceive).ThemaximumperiodconsideredwhenestimatingECLsisthemaximumcontractualperiod(includingextensionoptions)overwhichtheGroupisexposedtocreditrisk.LifetimeECLsaretheECLsthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.12-monthECLsaretheportionofECLsthatresultfromdefaulteventsthatarepossiblewithinthe12monthsafterthebalancesheetdate(orashorterperiodiftheexpectedlifeoftheinstrumentislessthan12months).
Lossallowancesforbillsreceivable,accountsreceivableandreceivablesunderfinancingarisingfromoridinarybusinessactivitiessuchassaleofgoodsandprovisionofservices,arealwaysmeasuredatanamountequaltolifetimeECLs.ECLsonthesefinancialassetsareestimatedusingaprovisionmatrixbasedontheGroup’shistoricalcreditlossexperience,adjustedforfactorsthatarespecifictothedebtorsandanassessmentofboththecurrentandforecastgeneraleconomicconditionsatthebalancesheetdate.Exceptforbillsreceivable,accountsreceivable,receivablesunderfinancing,theGroupmeasureslossallowancesatanamountequalto12-monthECLsforthefollowingfinancialinstruments,andatanamountequaltolifetimeECLsforallotherfinancialinstruments:
-Ifthefinancialinstrumentisdeterminedtohavelowcreditriskatthebalancesheetdate;-Ifthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.Provisionsforbadanddoubtfuldebtsarisingfromreceivables(a)Categoriesofgroupsforcollectiveassessmentbasedoncreditriskcharacteristicsand
basisfordetermination
Billsreceivable
| Billsreceivable | Basedonthedifferentcreditriskcharacteristicsofacceptors,theGroupclassifiesbillsreceivableintotwogroups:bankacceptancebillsandcommercialacceptancebills. |
| Accountsreceivable | Historically,thereisnosignificantdifferenceintermsofoccurrenceoflossesamongdifferentcustomertypesfortheGroup.Therefore,theGroupmakesprovisionsforbadanddoubtfuldebtsarisingfromaccountsreceivableonthebasisofallcustomersbeingonegroupwithoutfurthersegmentationbydifferentcustomertypes. |
| Receivablesunderfinancing | TheGroup’sreceivablesunderfinancingarebankacceptancebillsheldfordualpurposes.Astheacceptingbankshavehighcreditratings,theGroupconsidersallreceivablesunderfinancingasagroup. |
| Otherreceivables | TheGroup’sotherreceivablesmainlyincludedepositsandguaranteesreceivable,ect.Basedonthenatureofreceivablesandthecreditriskcharacteristicsofdifferentcounterparties,theGroupclassifiesotherreceivablesinto2groups,specifically:thegroupofdepositsandguaranteesreceivableandthegroupofotherreceivables. |
(b)Criteriaforindividualassessment
Billsreceivable,accountsreceivable,receivablesunderfinancing,andotherreceivablesareusuallyassessedcollectivelyasagroupbasedoncreditriskcharacteristicstomakeprovisions.Whenacounterpartyissignificantlydifferentfromothercounterpartiesinthegroupintermsofcreditriskcharacteristics,oriftherehasbeenasignificantchangeinitscreditriskcharacteristics,theindividualapproachisadoptedforreceivablesduefromthiscounterparty.Forexample,whenacounterpartyisinseriousfinancialdifficultiesandtheexpectedcreditlossratioofreceivablesduefromthiscounterpartyissignificantlyhigherthantheaverageexpectedcreditlossratiooftherelevantageingrange,itshouldbeindividualyassessedforprovisioningpurposes.FinancialinstrumentsthathavelowcreditriskThecreditriskonafinancialinstrumentisconsideredlowifthefinancialinstrumenthasalowriskofdefault,theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandadversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.SignificantincreasesincreditriskInassessingwhetherthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofdefaultoccurringonthefinancialinstrumentassessedatthebalancesheetdatewiththatassessedatthedateofinitialrecognition.WhendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognitionandwhenestimatingECL,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort,includingforward-lookinginformation.Inparticular,thefollowinginformationistakenintoaccount:
-failuretomakepaymentsofprincipalandinterestontheircontractualduedates;-anactualorexpectedsignificantdeteriorationinafinancialinstrument’sexternalorinternal
creditrating(ifavailable);-anactualorexpectedsignificantdeteriorationintheoperatingresultsofthedebtor;and-existingorforecastchangesinthetechnological,market,economicorlegalenvironmentthathaveasignificantadverseeffectonthedebtor’sabilitytomeetitsobligationtotheGroup.
TheGroupassumesthatthecreditriskonafinancialassethasincreasedsignificantlyifitismorethan30dayspastdue.
Credit-impairedfinancialassetsAteachbalancesheetdate,theGroupassesseswhetherfinancialassetscarriedatamortisedcostanddebtinvestmentsatFVOCIarecredit-impaired.Afinancialassetis‘credit-impaired’whenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowsofthefinancialassethaveoccurred.Evidencethatafinancialassetiscredit-impairedincludesthefollowingobservabledata:
-significantfinancialdifficultyoftheborrowerorissuer;-abreachofcontract,suchasadefaultordelinquencyininterestorprincipalpayments;-foreconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficulty,theGrouphavinggrantedtotheborroweraconcessionthatwouldnototherwiseconsider;-itisprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;or-thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancial
difficulties.PresentationofallowanceforECLECLsareremeasuredateachbalancesheetdatetoreflectchangesinthefinancialinstrument’screditrisksinceinitialrecognition.AnychangeintheECLamountisrecognisedasanimpairmentgainorlossinprofitorloss.TheGrouprecognisesanimpairmentgainorlossforallfinancialinstrumentswithacorrespondingadjustmenttotheircarryingamountthroughalossallowanceaccount,exceptfordebtinvestmentsthataremeasuredatFVOCI,forwhichthelossallowanceisrecognisedinothercomprehensiveincome.Write-offThegrosscarryingamountofafinancialassetiswrittenoff(eitherpartiallyorinfull)totheextentthatthereisnorealisticprospectofrecovery.Awrite-offconstitutesaderecognitionevent.ThisisgenerallythecasewhentheGroupdeterminesthatthedebtordoesnothaveassetsorsourcesofincomethatcouldgeneratesufficientcashflowstorepaytheamountssubjecttothewrite-off.However,financialassetsthatarewrittenoffcouldstillbesubjecttoenforcementactivitiesinordertocomplywiththeGroup’sproceduresforrecoveryofamountsdue.Subsequentrecoveriesofanassetthatwaspreviouslywrittenoffarerecognisedasareversalofimpairmentinprofitorlossintheperiodinwhichtherecoveryoccurs.
(7)Equityinstrument
Theconsiderationreceivedfromtheissuanceofequityinstrumentsnetoftransactioncostsisrecognisedattheactualissuepriceinshareholders’equity,relevanttransactioncostsaredeductedfromshareholders’equity(capitalreserve),withanyexcessdeductedfromsurplusreserveandretainedearningssequentially.ConsiderationandtransactioncostspaidbytheCompanyforrepurchasingself-issuedequityinstrumentsaredeductedfromshareholders’equity.WhentheCompanyrepurchasesitsownshares,thosesharesaretreatedastreasuryshares.Allexpenditurerelatingtotherepurchaseisrecordedinthecostofthetreasuryshares,withthetransactionrecordingintheshareregister.Treasurysharesareexcludedfromprofitdistributionsandarepresentedasadeductionundershareholders’equityinthebalancesheet.
Whentreasurysharesarecancelled,thesharecapitalshouldbereducedtotheextentofthetotalparvalueofthetreasurysharescancelled.Wherethecostofthetreasurysharescancelledexceedsthetotalparvalue,theexcessisdeductedfromcapitalreserve(sharepremium),surplusreserveandretainedearningssequentially.Ifthecostoftreasurysharescancelledislessthanthetotalparvalue,thedifferenceiscreditedtothecapitalreserve(sharepremium).11Inventories
(1)Categories
Inventoriesincluderawmaterials,workinprogressandfinishedgoods.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpenditureincurredinbringingtheinventoriestotheirpresentlocationandcondition.Inadditiontothepurchasecostofrawmaterials,workinprogressandfinishedgoodsincludedirectlabourcostsandanappropriateallocationofproductionoverheadsbasedonnormalcapacity.AgriculturalproductsharvestedarereportedinaccordancewiththeCASNo.1-Inventories.
(2)Measurementmethodofcostofinventories
Costofinventoriesiscalculatedusingtheweightedaveragemethod.
(3)Inventorycountsystem
TheGroupmaintainsaperpetualinventorysystem.
(4)Amortisationmethodforlow-valueconsumablesandpackagingmaterials
Consumablesincludinglow-valueconsumablesandpackagingmaterialsarechargedtoprofitorlossuponreceipt.Theamortisationchargeisincludedinthecostoftherelatedassetsorrecognisedinprofitorlossforthecurrentperiod.
(5)Criteriaandmethodforprovisionforobsoleteinventories
Atthebalancesheetdate,inventoriesarecarriedatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Thenetrealisablevalueofmaterialsheldforuseinproductionismeasuredbasedonthenetrealisablevalueofthefinishedgoodsinwhichtheywillbeincorporated.Thenetrealisablevalueofinventoryheldtosatisfysalesorservicecontractsismeasuredbasedonthecontractprice.IfthequantitiesofinventoriesheldbytheGroupexceedthequantitiesspecifiedinsalescontracts,thenetrealisablevalueoftheexcessportionofinventoriesisbasedongeneralsellingprices.Anyexcessofthecostoverthenetrealisablevalueofeachitemofinventoriesisrecognisedasaprovisionforobsoleteinventories,andisrecognisedinprofitorloss.
12Long-termequityinvestments
(1)Investmentcostoflong-termequityinvestments
(a)Long-termequityinvestmentsacquiredthroughabusinesscombination
-Theinitialcostofalong-termequityinvestmentacquiredthroughabusinesscombinationinvolvingentitiesundercommoncontrolistheCompany’sshareofthecarryingamountofthesubsidiary’sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountoftheconsiderationgivenisadjustedtothesharepremiuminthecapitalreserve,withanyexcessadjustedtothesurplusreservesandretainedearningssequentially.Foralong-termequityinvestmentinasubsidiaryacquiredthroughabusinesscombinationachievedinstageswhichdonotformabundledtransactionandinvolvingentitiesundercommoncontrol,theCompanydeterminestheinitialcostoftheinvestmentinaccordancewiththeabovepolicies.Thedifferencebetweenthisinitialcostandthesumofthecarryingamountofpreviously-heldinvestmentandtheconsiderationpaidforthesharesnewlyacquiredisadjustedtocapitalpremiuminthecapitalreserve,withanyexcessadjustedtothesurplusreservesandretainedearningssequentially.-Foralong-termequityinvestmentobtainedthroughabusinesscombinationnot
involvingenterprisesundercommoncontrol,theinitialcostcomprisestheaggregateofthefairvalueofassetstransferred,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheCompany,inexchangeforcontroloftheacquiree.Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingentitiesundercommoncontrolandachievedthroughmultipletransactionsinstageswhichdonotformabundledtransaction,theinitialcostcomprisesthecarryingamountofthepreviously-heldequityinvestmentintheacquireeimmediatelybeforetheacquisitiondate,andtheadditionalinvestmentcostattheacquisitiondate.(b)Long-termequityinvestmentsacquiredotherthanthroughabusinesscombination
-Along-termequityinvestmentacquiredotherthanthroughabusinesscombinationisinitiallyrecognisedattheamountofcashpaidiftheGroupacquirestheinvestmentbycash,oratthefairvalueoftheequitysecuritiesissuedifaninvestmentisacquiredbyissuingequitysecurities.
(2)Subsequentmeasurementoflong-termequityinvestment
(a)Investmentsinsubsidiaries
IntheCompany’sseparatefinancialstatements,long-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodunlesstheinvestmentisclassifiedasheldforsale(SeeNoteIII.31).Exceptforcashdividendsorprofitdistributionsdeclaredbutnotyetdistributedthathavebeenincludedinthepriceorconsiderationpaidinobtainingtheinvestments,theCompanyrecognisesitsshareofthecashdividendsorprofitdistributionsdeclaredbytheinvesteeasinvestmentincomeforthecurrentperiod.Theinvestmentsinsubsidiariesarestatedinthebalancesheetatcostlessaccumulatedimpairmentlosses.
Fortheimpairmentoftheinvestmentsinsubsidiaries,refertoNoteIII.21.IntheGroup’sconsolidatedfinancialstatements,subsidiariesareaccountedforinaccordancewiththepoliciesdescribedinNoteIII.7.(b)Investmentinjointventuresandassociates
AjointventureisanarrangementwherebytheGroupandotherpartieshavejointcontrol(seeNoteIII.12(3))andrightstothenetassetsofthearrangement.AssociatedenterprisesrefertoenterprisestowhichtheGroupcanexercisesignificantinfluence(seeNoteIII.12(3)).Along-termequityinvestmentinajointventureoranassociateisaccountedforusingtheequitymethodforsubsequentmeasurement,unlesstheinvestmentisclassifiedasheldforsale(seeNoteIII.31).TheaccountingtreatmentsundertheequitymethodadoptedbytheGroupareasfollows:
-Wheretheinitialcostofalong-termequityinvestmentexceedstheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedatcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedattheinvestor’sshareofthefairvalueoftheinvestee’sidentifiablenetassets,andthedifferenceisrecognisedinprofitorloss.-Aftertheacquisitionoftheinvestment,theGrouprecognisesitsshareoftheinvestee’sprofitorlossandothercomprehensiveincomeasinvestmentincomeorlossesandothercomprehensiveincomerespectively,andadjuststhecarryingamountoftheinvestmentaccordingly.Oncetheinvesteedeclaresanycashdividendsorprofitdistributions,thecarryingamountoftheinvestmentisreducedbytheamountattributabletotheGroup.ChangesintheGroup’sshareoftheinvestee’sowners’equity,otherthanthosearisingfromtheinvestee’snetprofitorloss,othercomprehensiveincomeorprofitdistribution(referredtoas“otherchangesinowners’equity”),isrecogniseddirectlyintheGroup’sequity,andthecarryingamountoftheinvestmentisadjustedaccordingly.-Incalculatingitsshareoftheinvestee’snetprofitsorlosses,othercomprehensive
incomeandotherchangesinowners’equity,theGrouprecognisesinvestmentincomeandothercomprehensiveincomeaftermakingappropriateadjustmentstoaligntheaccountingpoliciesoraccountingperiodswiththoseoftheGroupbasedonthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition.UnrealisedprofitsandlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedtotheextentoftheGroup’sinterestintheassociatesorjointventures.UnrealisedlossesresultingfromtransactionsbetweentheGroupanditsassociatesorjointventuresareeliminatedinthesamewayasunrealisedgainsbutonlytotheextentthatthereisnoimpairment.
-TheGroupdiscontinuesrecognisingitsshareoffurtherlossesoftheinvesteeafter
thecarryingamountofthelong-termequityinvestmentandanylong-terminterestthatinsubstanceformspartoftheGroup’snetinvestmentintheassociateisreducedtozero,excepttotheextentthattheGrouphasanobligationtoassumeadditionallosses.Ifthejointventureortheassociatesubsequentlyreportsnetprofits,theGroupresumesrecognisingitsshareofthoseprofitsonlyafteritsshareoftheprofitsequalstheshareoflossesnotrecognised.Fortheimpairmentoftheinvestmentsinjointventuresandassociates,refertoNoteIII.21.
(3)Criteriafordeterminingtheexistenceofjointcontroloveraninvestee
Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivities(activitieswithsignificantimpactonthereturnsofthearrangement)requiretheunanimousconsentofthepartiessharingcontrol.ThefollowingfactorsareusuallyconsideredwhenassessingwhethertheGroupcanexercisejointcontroloveraninvestee:
-Whethernosingleparticipantpartyisinapositiontocontroltheinvestee’srelatedactivitiesunilaterally;-Whetherstrategicdecisionsrelatingtotheinvestee’srelatedactivitiesrequirethe
unanimousconsentofallparticipantpartiesthatsharingofcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofaninvesteebutdoesnothavecontrolorjointcontroloverthosepolicies.13Investmentproperties
Investmentpropertiesarepropertiesheldeithertoearnrentalincomeorforcapitalappreciationorforboth.Investmentpropertiesareaccountedforusingthecostmodelandstatedinthebalancesheetatcostlessaccumulateddepreciation,amortisationandimpairmentlosses,andadoptsadepreciationoramortisationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights,unlesstheinvestmentpropertyisclassifiedasheldforsale(seeNoteIII.31).Fortheimpairmentoftheinvestmentproperties,refertoNoteIII.21.
Category
| Category | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
14Fixedassets
(1)Recognitionoffixedassets
FixedassetsrepresentthetangibleassetsheldbytheGroupforuseinproductionofgoods,supplyofservices,forrentalorforadministrativepurposeswithusefullivesoveroneaccountingyear.Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relatedtaxes,andanydirectlyattributableexpenditureforbringingtheassettoworkingconditionforitsintendeduse.Thecostofself-constructedassetsismeasuredinaccordancewiththepolicysetoutinNoteIII.15.WherethepartsofanitemoffixedassetshavedifferentusefullivesorprovidebenefitstotheGroupinadifferentpattern,thusnecessitatinguseofdifferentdepreciationratesormethods,eachpartisrecognisedasaseparatefixedasset.AnysubsequentcostsincludingthecostofreplacingpartofanitemoffixedassetsarerecognisedasassetswhenitisprobablethattheeconomicbenefitsassociatedwiththecostswillflowtotheGroup,andthecarryingamountofthereplacedpartisderecognised.Thecostsoftheday-to-daymaintenanceoffixedassetsarerecognisedinprofitorlossasincurred.Fixedassetsarestatedinthebalancesheetatcostlessaccumulateddepreciationandimpairmentlosses.
(2)Depreciationoffixedassets
Thecostofafixedasset,lessitsestimatedresidualvalueandaccumulatedimpairmentlosses,isdepreciatedusingthestraight-linemethodoveritsestimatedusefullife,unlessthefixedassetisclassifiedasheldforsale(seeNoteIII.31).Theestimatedusefullives,residualvalueratesanddepreciationratesofeachclassoffixedassetsareasfollows:
Class
| Class | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
| Machineryequipment | 5-30years | 0-5% | 3.2%-20.0% |
| Motorvehicles | 4-12years | 0-5% | 7.9%-25.0% |
Usefullives,estimatedresidualvaluesanddepreciationmethodsarereviewedatleastateachyear-end.
(3)Fortheimpairmentofthefixedassets,refertoNoteIII.21.
(4)Disposaloffixedassets
Thecarryingamountofafixedassetisderecognised:
-whenthefixedassetisholdingfordisposal;or-whennofutureeconomicbenefitisexpectedtobegeneratedfromitsuseordisposal.
Gainsorlossesarisingfromtheretirementordisposalofanitemoffixedassetaredeterminedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheitem,andarerecognisedinprofitorlossonthedateofretirementordisposal.15Constructioninprogress
Thecostofself-constructedassetsincludesthecostofmaterials,directlabour,capitalisedborrowingcosts(seeNoteIII.16),andanyothercostsdirectlyattributabletobringingtheassettoworkingconditionforitsintendeduse.Aself-constructedassetisclassifiedasconstructioninprogressandtransferredtofixedassetwhenitisreadyforitsintendeduse.Nodepreciationisprovidedagainstconstructioninprogress.Criteriaandtimingforthetransfertofixedassets：
Category
| Category | Criteriaandtimingforthetransfertofixedassets |
| Plantandbuildings | (1)Themainconstructionprojectsandancillaryprojectshavebeensubstantiallycompleted;(2)theconstructionprojectshavebeencheckedandacceptedbythesurvey,design,constructionandsupervisionunitsaftermeetingthepre-determineddesignrequirements;(3)theconstructionprojectshavebeencheckedandacceptedbyexternaldepartmentssuchasthefiredepartment,thelandandresourcesdepartmentandtheplanningdepartment;(4)ifaconstructionprojectisavailableforitsintendedusebutitsfinalaccounthasnotyetbeenfinalised,theconstructionprojectwillbetransferredtofixedassetsatitsestimatedvaluefromthedateitisavailableforitsintendeduse,basedontheitsestimatedvalueofconstruction. |
| Machineryandequipment | (1)Therelevantequipmentandothersupportingfacilitieshavebeeninstalled;(2)theequipmentcanoperatenormallyandstablyforaperiodaftercommissioning;(3)theproductionequipmentiscapableofproducingqualifiedproductsstablyforaperiod;(4)theequipmenthasbeencheckedandacceptedbyassetmanagementpersonnelandusers. |
Constructioninprogressisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.21).Whenanenterprisesellsproductsorby-productsproducedbeforeafixedassetisavailableforitsintendeduse,theproceedsandrelatedcostareaccountedforinaccordancewithCAS14–RevenueandCAS1–Inventoriesrespectively,andrecognisedinprofitorlossforthecurrentperiod.
16Borrowingcosts
Borrowingcostsincurreddirectlyattributabletotheacquisition,andconstructionorproductionofaqualifyingassetarecapitalisedaspartofthecostoftheasset.Otherborrowingcostsarerecognisedasfinancialexpenseswhenincurred.Duringthecapitalisationperiod,theamountofinterest(includingamortisationofanydiscountorpremiumonborrowing)tobecapitalisedineachaccountingperiodisdeterminedasfollows:
-Wherefundsareborrowedspecificallyfortheacquisitionandconstructionorproductionof
aqualifyingasset,theamountofinteresttobecapitalisedistheinterestexpensecalculatedusingeffectiveinterestratesduringtheperiodlessanyinterestincomeearnedfromdepositingtheborrowedfundsoranyinvestmentincomeonthetemporaryinvestmentofthosefundsbeforebeingusedontheasset.-TotheextentthattheGroupborrowsfundsgenerallyandusesthemfortheacquisitionand
constructionorproductionofaqualifyingasset,theamountofborrowingcostseligibleforcapitalisationisdeterminedbyapplyingacapitalisationratetotheweightedaverageoftheexcessamountsofcumulativeexpenditureontheassetovertheaboveamountsofspecificborrowings.Thecapitalisationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Theeffectiveinterestrateisdeterminedastheratethatexactlydiscountsestimatedfuturecashflowthroughtheexpectedlifeoftheborrowingor,whenappropriate,ashorterperiodtotheinitiallyrecognisedamountoftheborrowings.Duringthecapitalisationperiod,exchangedifferencesrelatedtotheprincipalandinterestonaspecific-purposeborrowingdenominatedinforeigncurrencyarecapitalisedaspartofthecostofthequalifyingasset.Theexchangedifferencesrelatedtotheprincipalandinterestonforeigncurrencyborrowingsotherthanaspecific-purposeborrowingarerecognisedasafinancialexpensewhenincurred.Thecapitalisationperiodistheperiodfromthedateofcommencementofcapitalisationofborrowingcoststothedateofcessationofcapitalisation,excludinganyperiodoverwhichcapitalisationissuspended.Capitalisationofborrowingcostscommenceswhenexpenditurefortheassetisbeingincurred,borrowingcostsarebeingincurredandactivitiesofacquisition,constructionorproductionthatarenecessarytopreparetheassetforitsintendeduseareinprogress,andceaseswhentheassetsbecomereadyfortheirintendeduse.Capitalisationofborrowingcostsshouldceasewhenthequalifyingassetbeingconstructedorproducedhasreacheditsexpectedusableorsaleablecondition.Capitalisationofborrowingcostsissuspendedwhentheacquisition,constructionorproductionactivitiesareinterruptedabnormallyforaperiodofmorethanthreemonths.17Biologicalassets
TheGroup’sbiologicalassetsarebearerbiologicalassets.Bearerbiologicalassetsarethosethatareheldforthepurposesofproducingagriculturalproduce,renderingofservicesorrental.BearerbiologicalassetsintheGrouparevines.Bearerbiologicalassetsareinitiallymeasuredatcost.Thecostofself-grownorself-bredbearerbiologicalassetsrepresentsthenecessarydirectlyattributableexpenditureincurred
beforesatisfyingtheexpectedproductionandoperatingpurpose,includingcapitalisedborrowingcosts.Bearerbiologicalassets,afterreachingtheexpectedproductionandoperatingpurpose,aredepreciatedusingthestraight-linemethodoveritsestimatedusefullife.Theestimatedusefullives,estimatednetresidualvalueratesanddepreciationratesofbearerbiologicalassetsareasfollows:
Category
| Category | Estimatedusefullife(years) | Estimatednetresidualvaluerate(%) | Depreciationrate(%) |
| Vines | 20years | 0% | 5.0% |
TheGroupevaluatestheusefullifeandexpectednetsalvagevaluebyconsideringthenormalproducinglifeofthebearerbiologicalassets.Usefullives,estimatedresidualvaluesanddepreciationmethodsofbearerbiologicalassetsarereviewedatleastateachyear-end.Anychangesshouldbetreatedaschangesinaccountingestimates.Forabearerbiologicalassetthathasbeensold,damaged,deadordestroyed,anydifferencebetweenthedisposalproceedsandthecarryingamountoftheassetshouldberecognisedinprofitorlossfortheperiodinwhichitarises.18Intangibleassets
UsefullifeandamortisationmethodsIntangibleassetsarestatedinthebalancesheetatcostlessaccumulatedamortization(wheretheestimatedusefullifeisfinite)andimpairmentlosses(seeNoteIII.21).Foranintangibleassetwithfiniteusefullife,itscostestimatedlessresidualvalueandaccumulatedimpairmentlossesisamortisedonthestraight-linemethodoveritsestimatedusefullife,unlesstheintangibleassetisclassifiedasheldforsale.Theestimatedusefullives,basisfordeterminationandamortisationmethodsofintangibleassetsareasfollows:
| Item | Amortisationperiod(years) | Basisfordetermination | Amortisationmethods |
| Landuserights | 40-50years | Termsoflanduserights | Stright-lineMethod |
| Softwarelicenses | 5-10years | Shorterofthetermofsoftwareortheestimatedusefullifeofsoftware | Stright-lineMethod |
| Trademarks | 10years | Shorterofthetermoftrademarkrightsortheestimatedusefullifeoftrademarkrights | Stright-lineMethod |
Usefullivesandamortisationmethodsofintangibleassetwithfiniteusefullifearereviewedatleastateachyear-end.
AnintangibleassetisregardedashavinganindefiniteusefullifeandisnotamortisedwhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Atthebalancesheetdate,theGrouphadintangibleassetswithinfiniteusefullivesincludingthelanduserightsandtrademarks.LanduserightswithinfiniteusefullivesarepermanentlanduserightswithpermanentownershipheldbytheGroupundertherelevantChileandAustralianlawsarisingfromtheGroup’sacquisitionofVi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSPA.(collectivelyreferredtoasthe“ChileIndomitaWineGroup”),andtheacquisitionofKilikanoonEstatePtyLtd.(the“AustraliaKilikanoonEstate”),thereforetherewasnoamortisation.TherighttousetrademarkreferstothetrademarkheldbytheGrouparisingfromtheacquisitionoftheChileIndomitaWineGroupandtheAustraliaKilikanoonEstatewithinfiniteusefullives.Thevaluationoftrademarkwasbasedonthetrendsinthemarketandcompetitiveenvironment,productcycle,andmanaginglong-termdevelopmentstrategy.ThosebasisindicatedthetrademarkwillprovidenetcashflowstotheGroupwithinanuncertainperiod.TheusefullifeisindefiniteasitwashardtopredicttheperiodthatthetrademarkwouldbringeconomicbenefitstotheGroup.19Goodwill
Theinitialcostofgoodwillrepresentstheexcessofcostofacquisitionovertheacquirer’sinterestinthefairvalueoftheidentifiablenetassetsoftheacquireeunderabusinesscombinationnotinvolvingentitiesundercommoncontrol.Goodwillisnotamortisedandisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.21).Ondisposalofanassetgrouporasetofassetgroups,anyattributablegoodwilliswrittenoffandincludedinthecalculationoftheprofitorlossondisposal.20Long-termdeferredexpenses
Expendituresincurredwithabeneficialperiodofoveroneyeararerecognisedaslong-termdeferredexpenses.Long-termdeferredexpensesareamortisedusingastraight-linemethodwithinthebenefitperiod.Therespectiveamortisationperiodsforsuchexpensesareasfollows:
Item
| Item | Amortisationperiod |
| Landrequisitionfee | 50years |
| Greeningfee | 5-20years |
| RenovationFee | 3-20years |
| Others | 3years |
21Impairmentofassetsotherthaninventoriesandfinancialassets
Thecarryingamountsofthefollowingassetsarereviewedateachbalancesheetdatebasedoninternalandexternalsourcesofinformationtodeterminewhetherthereisanyindicationofimpairment:
-fixedassets-constructioninprogress-right-of-useassets-intangibleassets-bearerbiologicalassets-investmentpropertiesmeasuredusingacostmodel-long-termequityinvestments-goodwill-long-termdeferredexpenses,etc.Ifanyindicationexists,therecoverableamountoftheassetisestimated.Inaddition,theGroupestimatestherecoverableamountsofgoodwillandintangibleassetswithinfiniteusefullivesateachyear-end,irrespectiveofwhetherthereisanyindicationofimpairment.Goodwillisallocatedtoeachassetgroup,orsetofassetgroups,thatisexpectedtobenefitfromthesynergiesofthecombinationforthepurposeofimpairmenttesting.Therecoverableamountofanasset(orassetgroup,setofassetgroups)isthehigherofitsfairvalue(seeNoteIII.22)lesscoststosellanditspresentvalueofexpectedfuturecashflows.Anassetgroupiscomposedofassetsdirectlyrelatedtocash-generationandisthesmallestidentifiablegroupofassetsthatgeneratescashinflowsthatarelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Thepresentvalueofexpectedfuturecashflowsofanassetisdeterminedbydiscountingthefuturecashflows,estimatedtobederivedfromcontinuinguseoftheassetandfromitsultimatedisposal,totheirpresentvalueusinganappropriatepre-taxdiscountrate.Animpairmentlossisrecognisedinprofitorlosswhentherecoverableamountofanassetislessthanitscarryingamount.Aprovisionforimpairmentoftheassetisrecognisedaccordingly.Impairmentlossesrelatedtoanassetgrouporasetofassetgroupsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheassetgrouporsetofassetgroups,andthentoreducethecarryingamountoftheotherassetsintheassetgrouporsetofassetgroupsonaproratabasis.However,suchallocationwouldnotreducethecarryingamountofanassetbelowthehighestofitsfairvaluelesscoststosell(ifmeasurable),itspresentvalueofexpectedfuturecashflows(ifdeterminable)andzero.Onceanimpairmentlossisrecognised,itisnotreversedinasubsequentperiod.
22Fairvaluemeasurement
Unlessotherwisespecified,theGroupmeasuresfairvalueasfollows:
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Whenmeasuringfairvalue,theGrouptakesintoaccountthecharacteristicsoftheparticularassetorliability(includingtheconditionandlocationoftheassetandrestrictions,ifany,onthesaleoruseoftheasset)thatmarketparticipantswouldconsiderwhenpricingtheassetorliabilityatthemeasurementdate,andusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataandotherinformationareavailabletomeasurefairvalue.Valuationtechniquesmainlyincludethemarketapproach,theincomeapproachandthecostapproach.23Provisions
AprovisionisrecognisedforanobligationrelatedtoacontingencyiftheGrouphasapresentobligationthatcanbeestimatedreliably,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation.Aprovisionisinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation.Wheretheeffectofthetimevalueofmoneyismaterial,provisionsaredeterminedbydiscountingtheexpectedfuturecashflows.Factorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyaretakenintoaccountasawholeinreachingthebestestimate.Wherethereisacontinuousrangeofpossibleoutcomesfortheexpenditurerequired,andeachpossibleoutcomeinthatrangeisaslikelyasanyother,thebestestimateisthemid-pointofthatrange.Inothercases,thebestestimateisdeterminedasfollows:
-Wherethecontingencyinvolvesasingleitem,thebestestimateisthemostlikelyoutcome.-Wherethecontingencyinvolvesalargepopulationofitems,thebestestimateis
determinedbyweightingallpossibleoutcomesbytheirassociatedprobabilities.TheGroupreviewsthecarryingamountsofprovisionsatthebalancesheetdateandadjuststheircarryingamountstothecurrentbestestimates.24Share-basedpayments
(1)Classificationofshare-basedpayments
Share-basedpaymenttransactionsintheGroupareequity-settledshare-basedpayments..
(2)Accountingtreatmentofshare-basedpayments
-Equity-settledshare-basedpaymentsWheretheGroupusessharesorotherequityinstrumentsasconsiderationforservicesreceivedfromemployees,thepaymentismeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployeesatthegrantdate.Iftheequityinstrumentsgrantedtoemployeesvestimmediately,thefairvalueoftheequityinstrumentsgrantedisfullyrecognisedascostsorexpensesonthegrantdate,withacorrespondingincreaseincapitalreserve.Iftheequityinstrumentsgranteddonotvestuntilthecompletionofservicesforaperiod,oruntiltheachievementofaspecifiedperformancecondition,theGrouprecognisesanamountateachbalancesheetdateduringthevestingperiodbasedonthebestestimateofthenumberofequityinstrumentsexpectedtovestaccordingtonewlyobtainedsubsequentinformationregardingchangesinthenumberofemployeesexpectedtovesttheequityinstruments.TheGroupmeasurestheservicesreceivedatthegrant-datefairvalueoftheequityinstrumentsandrecognisesthecostsorexpensesastheservicesarereceived,withacorrespondingincreaseincapitalreserve.WhentheGroupreceivesservicesbuthasnoobligationtosettlethetransactionbecausetherelevantequityinstrumentsareissuedbytheCompany’sultimateparentoritssubsidiariesoutsidetheGroup,theGroupalsoclassifiesthetransactionasequity-settled.25Revenuerecognition
RevenueisthegrossinflowofeconomicbenefitsarisinginthecourseoftheGroup’sordinaryactivitieswhentheinflowsresultinincreaseinshareholders’equity,otherthanincreaserelatingtocontributionsfromshareholders.RevenueisrecognisedwhentheGroupsatisfiestheperformanceobligationinthecontractbytransferringthecontroloverrelevantgoodsorservicestothecustomers.Whereacontracthastwoormoreperformanceobligations,theGroupdeterminesthestand-alonesellingpriceatcontractinceptionofthedistinctgoodorserviceunderlyingeachperformanceobligationinthecontractandallocatesthetransactionpriceinproportiontothosestand-alonesellingprices.TheGrouprecognisesasrevenuetheamountofthetransactionpricethatisallocatedtoeachperformanceobligation.Thestand-alonesellingpriceisthepriceatwhichtheGroupwouldsellapromisedgoodorserviceseparatelytoacustomer.Ifastand-alonesellingpriceisnotdirectlyobservable,theGroupconsidersallinformationthatisreasonablyavailabletotheentity,maximisestheuseofobservableinputstoestimatethestand-alonesellingprice.Forthecontractwithawarranty,theGroupanalysesthenatureofthewarrantyprovided,ifthewarrantyprovidesthecustomerwithadistinctserviceinadditiontotheassurancethattheproductcomplieswithagreed-uponspecifications,theGrouprecognisesforthepromisedwarrantyasaperformanceobligation.Otherwise,theGroupaccountsforthewarrantyinaccordancewiththerequirementsofCASNo.13–Contingencies.
ThetransactionpriceistheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdparties.TheGrouprecognisesthetransactionpriceonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.Wherethecontractcontainsasignificantfinancingcomponent,theGrouprecognisesthetransactionpriceatanamountthatreflectsthepricethatacustomerwouldhavepaidforthepromisedgoodsorservicesifthecustomerhadpaidcashforthosegoodsorserviceswhen(oras)theytransfertothecustomer.Thedifferencebetweentheamountofpromisedconsiderationandthecashsellingpriceisamortisedusinganeffectiveinterestmethodoverthecontractterm.TheGroupdoesnotadjusttheconsiderationforanyeffectsofasignificantfinancingcomponentifitexpects,atcontractinception,thattheperiodbetweenwhentheGrouptransfersapromisedgoodorservicetoacustomerandwhenthecustomerpaysforthatgoodorservicewillbeoneyearorless.TheGroupsatisfiesaperformanceobligationovertimeifoneofthefollowingcriteriaismet;orotherwise,aperformanceobligationissatisfiedatapointintime:
-thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheGroup’s
performanceastheGroupperforms;-thecustomercancontroltheassetcreatedorenhancedduringtheGroup’sperformance;or-theGroup’sperformancedoesnotcreateanassetwithanalternativeusetoitandthe
Grouphasanenforceablerighttopaymentforperformancecompletedtodate.Forperformanceobligationsatisfiedovertime,theGrouprecognisesrevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation.Whentheoutcomeofthatperformanceobligationcannotbemeasuredreasonably,buttheGroupexpectstorecoverthecostsincurredinsatisfyingtheperformanceobligation,theGrouprecognisesrevenueonlytotheextentofthecostsincurreduntilsuchtimethatitcanreasonablymeasuretheoutcomeoftheperformanceobligation.Forperformanceobligationsatisfiedatapointintime,theGrouprecognisesrevenueatthepointintimeatwhichthecustomerobtainscontrolofrelevantgoodsorservices.Todeterminewhetheracustomerhasobtainedcontrolofgoodsorservices,theGroupconsidersthefollowingindicators:
-theGrouphasapresentrighttopaymentforthegoodsorservices;-theGrouphastransferredphysicalpossessionofthegoodstothecustomer;-theGrouphastransferredthelegaltitleofthegoodsorthesignificantrisksandrewardsof
ownershipofthegoodstothecustomer;and-thecustomerhasacceptedthegoodsorservices.Forthesaleofaproductwitharightofreturn,theGrouprecognisesrevenuewhentheGroupobtainscontrolofthatproduct,intheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortheproducttransferred(i.e.excludingtheamountofwhichexpectedtobereturned),andrecognisesarefundliabilityfortheproductsexpectedtobereturned.Meanwhile,anassetisrecognisedintheamountofcarryingamountoftheproductexpectedtobereturnedlessanyexpectedcoststorecoverthoseproducts(includingpotentialdecreasesinthevalueofreturnedproducts),andcarryforwardtocostintheamountofcarryingamountofthetransferredproductslesstheabovecosts.Attheendofeachreportingperiod,theGroupupdatesitsassessmentoffuturesalesreturn.Ifthereisanychange,itisaccountedforasachangeinaccountingestimate.
AcontractassetistheGroup’srighttoconsiderationinexchangeforgoodsorservicesthatithastransferredtoacustomerwhenthatrightisconditionalonsomethingotherthanthepassageoftime.TheGrouprecogniseslossallowancesforexpectedcreditlossoncontractassets.AccountsreceivableistheGroup’srighttoconsiderationthatisunconditional(onlythepassageoftimeisrequired).AcontractliabilityistheGroup’sobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer.ThefollowingisthedescriptionofaccountingpoliciesregardingrevenuefromtheGroup’sprincipalactivities:
TheGroup’ssalesrevenueismainlyderivedfromdealersales.RevenueisrecognisedwhentheGrouptransferscontroloftherelatedproductstothecustomer.Basedonthebusinesscontract,theGrouprecognisedthesalesrevenueofthesetransferswhentheproductisconfirmedandsignedforacceptancebythecustomers.26Contractcosts
Contractcostsareeithertheincrementalcostsofobtainingacontractwithacustomerorthecoststofulfilacontractwithacustomer.IncrementalcostsofobtainingacontractarethosecoststhattheGroupincurstoobtainacontractwithacustomerthatitwouldnothaveincurredifthecontracthadnotbeenobtainede.g.anincrementalsalescommission.TheGrouprecognisesasanassettheincrementalcostsofobtainingacontractwithacustomerifitexpectstorecoverthosecosts.Othercostsofobtainingacontractareexpensedwhenincurred.Ifthecoststofulfilacontractwithacustomerarenotwithinthescopeofinventoriesorotheraccountingstandards,theGrouprecognisesanassetfromthecostsincurredtofulfilacontractonlyifthosecostsmeetallofthefollowingcriteria:
-thecostsrelatedirectlytoanexistingcontractortoaspecificallyidentifiableanticipated
contract,includingdirectlabour,directmaterials,allocationsofoverheads(orsimilarcosts),coststhatareexplicitlychargeabletothecustomerandothercoststhatareincurredonlybecausetheGroupenteredintothecontract-thecostsgenerateorenhanceresourcesoftheGroupthatwillbeusedinsatisfying(orin
continuingtosatisfy)performanceobligationsinthefuture;and-thecostsareexpectedtoberecovered.Assetsrecognisedfortheincrementalcostsofobtainingacontractandassetsrecognisedforthecoststofulfilacontract(the“assetsrelatedtocontractcosts”)areamortisedonasystematicbasisthatisconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetsrelateandrecognisedinprofitorlossforthecurrentperiod.TheGrouprecognisestheincrementalcostsofobtainingacontractasanexpensewhenincurrediftheamortisationperiodoftheassetthattheentityotherwisewouldhaverecognisedisoneyearorless.TheGrouprecognisesanimpairmentlossinprofitorlosstotheextentthatthecarryingamountofanassetrelatedtocontractcostsexceeds:
-remainingamountofconsiderationthattheGroupexpectstoreceiveinexchangeforthe
goodsorservicestowhichtheassetrelates;less
-thecoststhatrelatedirectlytoprovidingthosegoodsorservicesthathavenotyetbeen
recognisedasexpenses.27Employeebenefits
(1)Short-termemployeebenefits
Employeewagesorsalaries,bonuses,socialsecuritycontributionssuchasmedicalinsurance,workinjuryinsurance,maternityinsuranceandhousingfund,measuredattheamountincurredoraccuredattheapplicablebenchmarksandrates,arerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
(2)Post-employmentbenefits–definedcontributionplans
PursuanttotherelevantlawsandregulationsofthePeople’sRepublicofChina,theGroupparticipatedinadefinedcontributionbasicpensioninsuranceplaninthesocialinsurancesystemestablishedandmanagedbygovernmentorganisations.TheGroupmakescontributionstobasicpensioninsuranceplansbasedontheapplicablebenchmarksandratesstipulatedbythegovernment.Basicpensioninsurancecontributionspayablearerecognisedasaliabilityastheemployeeprovidesservices,withacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.
(3)Terminationbenefits
WhentheGroupterminatestheemploymentwithemployeesbeforetheemploymentcontractsexpire,orprovidescompensationunderanoffertoencourageemployeestoacceptvoluntaryredundancy,aprovisionisrecognisedwithacorrespondingexpenseinprofitorlossattheearlierofthefollowingdates:
-WhentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseof
anemployeeterminationplanoracurtailmentproposal;-WhentheGrouphasaformaldetailedrestructuringplaninvolvingthepaymentof
terminationbenefitsandhasraisedavalidexpectationinthoseaffectedthatitwillcarryout
therestructuringbystartingtoimplementthatplanorannouncingitsmainfeaturestothose
affectedbyit.28Governmentgrants
Governmentgrantsarenon-reciprocaltransfersofmonetaryornon-monetaryassetsfromthegovernmenttotheGroupexceptforcapitalcontributionsfromthegovernmentinthecapacityasaninvestorintheGroup.AgovernmentgrantisrecognisedwhenthereisreasonableassurancethatthegrantwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtothegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasuredatfairvalue.
GovernmentgrantsrelatedtoassetsaregrantswhoseprimaryconditionisthattheGroupqualifyingforthemshouldpurchase,constructorotherwiseacquirelong-termassets.Governmentgrantsrelatedtoincomearegrantsotherthanthoserelatedtoassets.Agovernmentgrantrelatedtoanassetisrecognisedasdeferredincomeandamortisedovertheusefullifeoftherelatedassetonareasonableandsystematicmannerasotherincomeornon-operatingincome.AgrantthatcompensatestheGroupforexpensesorlossestobeincurredinthefutureisrecognisedasdeferredincome,andincludedinotherincomeornon-operatingincomeintheperiodsinwhichtheexpensesorlossesarerecognised.Orincludedinotherincomeornon-operatingincomedirectly.29Incometax
Currenttaxanddeferredtaxarerecognisedinprofitorlossexcepttotheextentthattheyrelatetoabusinesscombinationoritemsrecogniseddirectlyinequity(includingothercomprehensiveincome).Currenttaxistheexpectedtaxpayablecalculatedattheapplicabletaxrateontaxableincomefortheyear,plusanyadjustmenttotaxpayableinrespectofpreviousyears.Atthebalancesheetdate,currenttaxassetsandliabilitiesareoffsetonlyiftheGrouphasalegallyenforceablerighttosetthemoffandalsointendseithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.Deferredtaxassetsanddeferredtaxliabilitiesarisefromdeductibleandtaxabletemporarydifferencesrespectively,beingthedifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheirtaxbases,whichincludedeductiblelossesandtaxcreditscarriedforwardtosubsequentperiods.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilised.Deferredtaxisnotrecognisedfortemporarydifferencesarisingfromtheinitialrecognitionofassetsorliabilitiesinasingletransactionthatisnotabusinesscombination,affectsneitheraccountingprofitnortaxableprofit(ordeductibleloss)anddoesnotgiverisetoequaltaxableanddeductibletemporarydifferences.Deferredtaxisalsonotrecognisedfortaxabletemporarydifferencesarisingfromtheinitialrecognitionofgoodwill.Atthebalancesheetdate,deferredtaxismeasuredbasedonthetaxconsequencesthatwouldfollowfromtheexpectedmannerofrecoveryorsettlementofthecarryingamountsoftheassetsandliabilities,usingtaxratesenactedatthebalancesheetdatethatareexpectedtobeappliedintheperiodwhentheassetisrecoveredortheliabilityissettled.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate,andisreducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitswillbeutilised.Suchreductionsarereversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitswillbeavailable.Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesareoffsetifallofthefollowingconditionsaremet:
-thetaxableentityhasalegallyenforceablerighttooffsetcurrenttaxliabilitiesandcurrent
taxassets;-theyrelatetoincometaxesleviedbythesametaxauthorityoneither:
-thesametaxableentity;or-differenttaxableentitieswhichintendeithertosettlethecurrenttaxliabilitiesandcurrent
taxassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesordeferredtaxassetsareexpectedtobesettledorrecovered.30Leases
Acontractisleaseifthelessorconveystherighttocontroltheuseofanidentifiedassettolesseeforaperiodoftimeinexchangeforconsideration.Atinceptionofacontract,theGroupassesseswhetheracontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedasset,theGroupassesseswhether:
-thecontractinvolvestheuseofanidentifiedasset.Anidentifiedassetmaybespecified
explicitlyorimplicitlyspeiciedinacontratandshouldbephysicallydistinct,orcapacityportionorotherportionofanassetthatisnotphysicallydistinctbutitrepresentssubstantiallyallofthecapacityoftheassetandtherebyprovidesthecustomerwiththerighttoobtainsubstantiallyalloftheecomonicbenefitsfromtheuseoftheasset.Ifthesupplierhasasubstantivesubstitutionrightthroughouttheperiodofuse,thentheassetisnotidentified;-thelesseehastherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseoftheassetthroughouttheperiodofuse;-thelesseehastherighttodirecttheuseoftheasset.Foracontractthatcontainsmoreseparateleasecomponets,thelesseeandthelessorseparateleasecomponentsandaccountforeachleasecomponentasaleaseseparately.Foracontractthatcontainsleaseandnon-leasecomponents,thelesseeandthelessorseparateleasecomponentsfromnon-leasecomponents.Foracontractthatcontainsleaseandnon-leasecomponents,thelesseeallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentandtheaggregatestand-alonepriceofthenon-leasecomponents.ThelessorallocatestheconsiderationinthecontractinaccordancewiththeaccountingpolicyinNoteIII.25.
(1)Asalessee
TheGrouprecognisesaright-of-useassetandaleaseliabilityattheleasecommencementdate.Theright-of-useassetisinitiallymeasuredatcost,whichcomprisestheinitialamountoftheleaseliability,anyleasepaymentsmadeatorbeforethecommencementdate(lessanyleaseincentivesreceived),anyinitialdirectcostsincurredandanestimateofcoststodismantleandremovetheunderlyingassetortorestorethesiteonwhichitislocatedorrestoretheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.
Theright-of-useassetisdepreciatedusingthestraight-linemethod.Ifthelesseeisreasonablycertaintoexerciseapurchaseoptionbytheendoftheleaseterm,theright-of-useassetisdepreciatedovertheremainingusefullivesoftheunderlyingasset.Otherwise,theright-of-useassetisdepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetortheendoftheleaseterm.Impairmentlossesofright-of-useassetsareaccountedforinaccordancewiththeaccountingpolicydescribedinNoteIII.21.Theleaseliabilityisinitiallymeasuredatthepresentvalueoftheleasepaymentsthatarenotpaidatthecommencementdate,discountedusingtheinterestrateimplicitintheleaseor,ifthatratecannotbereadilydetermined,theGroup’sincrementalborrowingrate.Aconstantperiodicrateisusedtocalculatetheinterestontheleaseliabilityineachperiodduringtheleasetermwithacorrespondingchargetoprofitorlossorincludedinthecostofassetswhereappropriate.Variableleasepaymentsnotincludedinthemeasurementoftheleaseliabilityischargedtoprofitorlossorincludedinthecostofassetswhereappropriateasincurred.Underthefollowingcircumstancesafterthecommencementdate,theGroupremeasuresleaseliabilitiesbasedonthepresentvalueofrevisedleasepayments:
-thereisachangeintheamountsexpectedtobepayableunderaresidualvalueguarantee;-thereisachangeinfutureleasepaymentsresultingfromachangeinanindexorarate
usedtodeterminethosepayments;-thereisachangeintheassessmentofwhethertheGroupwillexerciseapurchase,extensionorterminationoption,orthereisachangeintheexerciseoftheextensionorterminationoption.Whentheleaseliabilityisremeasured,acorrespondingadjustmentismadetothecarryingamountoftheright-of-useasset,orisrecordedinprofitorlossifthecarryingamountoftheright-of-useassethasbeenreducedtozero.TheGrouphaselectednottorecogniseright-of-useassetsandleaseliabilitiesforshort-termleasesthathavealeasetermof12monthsorlessandleasesoflow-valueassets.TheGrouprecognisestheleasepaymentsassociatedwiththeseleasesinprofitorlossorasthecostoftheassetswhereappropriateusingthestraight-linemethodovertheleaseterm.
(2)Asalessor
TheGroupdeterminesatleaseinceptionwhethereachleaseisafinanceleaseoranoperatinglease.Aleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingassetirrespectiveofwhetherthelegaltitletotheassetiseventuallytransferred.Anoperatingleaseisaleaseotherthanafinancelease.WhentheGroupisasub-lessor,itassessestheleaseclassificationofasub-leasewithreferencetotheright-of-useassetarisingfromtheheadlease,notwithreferencetotheunderlyingasset.Ifaheadleaseisashort-termleasetowhichtheGroupappliespracticalexpedientdescribedabove,thenitclassifiesthesub-leaseasanoperatinglease.
Underafinancelease,atthecommencementdate,theGrouprecognisesthefinanceleasereceivableandderecognisesthefinanceleaseasset.Thefinanceleasereceivableisinitiallymeasuredatanamountequaltothenetinvestmentinthelease.Thenetinvestmentintheleaseismeasuredattheaggregateoftheunguaranteedresidualvalueandthepresentvalueoftheleasereceivablethatarenotreceivedatthecommencementdate,discountedusingtheinterestrateimplicitinthelease.TheGrouprecognisesfinanceincomeovertheleaseterm,basedonapatternreflectingaconstantperiodicrateofreturn.ThederecognitionandimpairmentofthefinanceleasereceivablearerecognisedinaccordancewiththeaccountingpolicyinNoteIII.10.Variableleasepaymentsnotincludedinthemeasurementofnetinvestmentintheleasearerecognisedasincomeastheyareearned.Leasereceiptsfromoperatingleasesisrecognisedasincomeusingthestraight-linemethodovertheleaseterm.Theinitialdirectcostsincurredinrespectoftheoperatingleaseareinitiallycapitalisedandsubsequentlyamortisedinprofitorlossovertheleasetermonthesamebasisastheleaseincome.Variableleasepaymentsnotincludedinleasereceiptsarerecognisedasincomeastheyareearned.31Assetsheldforsale
TheGroupclassifiedanon-currentassetordisposalgroupasheldforsalewhenthecarryingamountofanon-currentassetordisposalgroupwillberecoveredthroughasaletransactionratherthanthroughcontinuinguse.Adisposalgroupreferstoagroupofassetstobedisposedof,bysaleorotherwise,togetherasawholeinasingletransactionandliabilitiesdirectlyassociatedwiththoseassetsthatwillbetransferredinthetransaction.Anon-currentassetordisposalgroupisclassifiedasheldforsalewhenallthefollowingcriteriaaremet:
-Accordingtothecustomarypracticesofsellingsuchassetordisposalgroupinsimilartransactions,thenon-currentassetordisposalgroupmustbeavailableforimmediatesaleintheirpresentconditionsubjecttotermsthatareusualandcustomaryforsalesofsuchassetsordisposalgroups;
-Itssaleishighlyprobable,thatis,theGrouphasmadearesolutiononasaleplanandhasobtainedafirmpurchasecommitment.Thesaleistobecompletedwithinoneyear.Non-currentassetsordisposalgroupsheldforsalearestatedatthelowerofcarryingamountandfairvalue(seeNoteIII.22)lesscoststosell(exceptfinancialassets(seeNoteIII.10),deferredtaxassets(seeNoteIII.29)andinvestmentpropertiessubsequentmeasuredatfairvalue(seeNoteIII.13)initiallyandsubsequently.Anyexcessofthecarryingamountoverthefairvalue(seeNoteIII.22)lesscoststosellisrecognisedasanimpairmentlossinprofitorloss.32Profitdistributions
Dividendsorprofitdistributionsproposedintheprofitappropriationplan,whichwillbeapprovedafterthebalancesheetdate,arenotrecognisedasaliabilityatthebalancesheetdatebutaredisclosedinthenotesseparately.
33Relatedparties
Ifapartyhasthepowertocontrol,jointlycontrolorexercisesignificantinfluenceoveranotherparty,orviceversa,orwheretwoormorepartiesaresubjecttocommoncontrolorjointcontrolfromanotherparty,theyareconsideredtoberelatedparties.Relatedpartiesmaybeindividualsorenterprises.EnterpriseswithwhichtheCompanyisundercommoncontrolonlyfromtheStateandthathavenootherrelatedpartyrelationshipsarenotregardedasrelatedparties.Inadditiontotherelatedpartiesstatedabove,theCompanydeterminesrelatedpartiesbasedonthedisclosurerequirementsofAdministrativeProceduresontheInformationDisclosuresofListedCompaniesissuedbytheCSRC.34Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparklingwineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup’sinternalorganisationstructure,managementrequirementsandinternalreportingsystem,theGroup’soperationisdividedintofiveparts:China,Spain,France,ChileandAustralia.Themanagementperiodicallyevaluatessegmentresults,inordertoallocateresourcesandevaluateperformances.In2025,over79%ofrevenue,morethan83%ofprofitandover91%ofnon-currentassetsderivedfromChina/arelocatedinChina.ThereforetheGroupdoesnotneedtodiscloseadditionalsegmentreportinformation.35Significantaccountingestimatesandjudgements
Thepreparationofthefinancialstatementsrequiresmanagementtomakeestimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Themanagementestimatesaswellasunderlyingassumptionsanduncertaintiesinvolvedarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.SignificantaccountingestimatesseeNotesV.3711and16.36Changesinsignificantaccountingpolicies
TherewerenochangesintheGroup’saccountingpoliciesin2025.IV.Taxation1Maintypesoftaxesandcorrespondingtaxrates
Typeoftax
| Typeoftax | Taxationbasis | Taxrate |
| Value-addedtax(VAT) | OutputVATiscalculatedonproductsalesandtaxableservicesrevenue.ThebasisforVATpayableistodeductinputVATfromtheoutputVATfortheperiod | 13%,9%,6%(China),20%(France),21%(Spain),19%(Chile)and10%(Australia) |
| Consumptiontax | Basedontaxablerevenue | 10%oftheprice,20%ofthepriceand |
RMB1,000eachton(China)
| RMB1,000eachton(China) | ||
| Urbanmaintenanceandconstructiontax | BasedonVATpaid | 7%(China) |
| Corporateincometax | Basedontaxableprofits | 25%(China),25%(France),28%(Spain),27%(Chile),30%(Australia) |
OtherthantaxincentivesstatedinNoteIV.2,applicabletaxratesoftheGroupin2025and2024areallstatedasabove.2Taxpreferentialtreatments
NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinNingxiaHuizuAutonomousRegion.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,NingxiaGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuGrapeGrowingCo.,Ltd.(“GrapeGrowing”),abranchoftheCompany,whoseprincipalactivityisgrapegrowingisincorporatedinZhifuDistrict,YantaiCity,ShandongProvince.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,GrapeGrowingenjoysanexemptionofcorporateincometax.YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”),abranchoftheCompany,isanenterpriseengagedingrapegrowingintheEconomicandTechnologicalDevelopmentZoneofYantaiCity,ShandongProvince.PursuanttoArticle27oftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandArticle86oftheImplementationRegulationsoftheEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,R&DCentreenjoysthepreferentialpolicyofexemptionofenterpriseincometaxonincomefromgrapegrowing.BeijingChangyuAFIPAgricultureDevelopmentCo.,Ltd.(“AgricultureDevelopment”),asubsidiaryoftheGroup,whoseprincipalactivityisgrapegrowingisincorporatedinMiyun,Beijing.Accordingtoclause27oftheCorporateIncomeTaxLawofthePeople’sRepublicofChinaandclause86oftheImplementationRulesofEnterpriseIncomeTaxLawofthePeople’sRepublicofChina,AgricultureDevelopmentenjoysanexemptionofcorporateincometax.XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),theCompanyisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom2021to2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.NingxiaChangyuLongyuChateauCo.,Ltd.(“NingxiaChateau”),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinYinchuan,NingxiaHuiAutonomousRegion.InaccordancewiththeNoticeonContinuingtheEnterpriseIncomeTaxPoliciesfortheLarge-ScaleDevelopmentofWesternChina(NoticeoftheMinistryofFinance[2020]No.23),NingxiaChateauisqualifiedtoenjoypreferentialtaxationpolicies,
whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2021to2030.Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”),asubsidiaryoftheCompany,isanenterpriseengagedinwineproductionandsales,incorporatedinShiheziCity,XinjiangUygurAutonomousRegion.InaccordancewithrelevantprovisionsoftheAnnouncementonContinuationofCITPoliciesforLarge-scaleDevelopmentintheWesternRegion(Announcement[2020]No.23oftheMinistryofFinance),Changyu(Ningxia)Wineisentitledtopreferentialtaxpolicies.Therefore,duringtheperiodfrom2021to2030,itscorporateincometaxshallbeleviedatareducedtaxrateof15%.InaccordancewiththePRCEnterpriseIncomeTaxLawanditsimplementingregulations,theNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonFurtherSupporttheInclusiveTaxExpensesPoliciesforMicroandSmallEnterprisesformicroandsmallenterprisesDevelopment(Announcement[2023]No.12oftheMinistryofFinanceandtheStateTaxationAdministration),formicroandsmallenterprisesmeettheapplicationrequirementsthattheamountoftaxableincomeshallbereducedby25%,andtheapplicablerateofenterpriseincometaxshallbe20%.BeijingChangyuWineMarketingCo.,Ltd.(“BeijingMarketing”),asubsidiaryoftheCompany,wasidentifiedasaqualifiedsmallenterprisewithmeagreprofits.PursuanttotheAnnouncementonClarifyingVATReliefandOtherPoliciesforSmall-scaleVATTaxpayers(Announcement[2023]No.19oftheMinistryofFinanceandtheStateTaxationAdministration),thetaxablesalesrevenueofsmall-scaleVATtaxpayerstowhichalevyrateof3%isapplicableshallbesubjecttoVATatareducedlevyrateof1%;andtheprepaidVATitemstowhichapre-levyrateof3%isapplicableshallbesubjecttoareducedpre-levyrateof1%fromtheperiodfrom1January2024to31December2027.XinjiangChangyuSalesCo.,Ltd.WeimeisiTastingCentreBranchisentitledtotheabovepreferentialtaxpolicies.InaccordancewiththeNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonFurtherSteppinguptheImplementationofthePolicyfortheRefundofTerm-EndExcessInputValue-AddedTaxCredits(NoticeoftheMinistryofFinanceandStateTaxationAdministration[2022]No.14),thegovernmentshouldfurtherstepuptheimplementationofthepolicyfortherefundofterm-endexcessinputvalue-addedtaxcreditsandexpandthescopeofindustriesapplicabletothispolicy.TheCompanyanditsqualifiedsubsidiarieshaveenjoyedthispolicy.PursuanttotheAnnouncementonFurtherTaxandFeePoliciestoSupporttheDevelopmentofSmallandMicroEnterprisesandIndividualBusinesses(AnnouncementNo.12[2023])jointlyissuedbytheMinistryofFinanceandtheStateTaxationAdministration,fortheperiodfromJanuary1,2023toDecember31,2027,VATsmall-scaletaxpayers,smalllow-profitenterprises,andindividualindustrialandcommercialhouseholdsaresubjecttoa50%reductioninResourceTax(excludingWaterResourceTax),CityMaintenanceandConstructionTax,PropertyTax,UrbanLandUseTax,StampDuty(excludingStampDutyonSecuritiesTrading),FarmlandOccupationTax,EducationSurcharge,andLocalEducationSurcharge.CertainsubsidiariesoftheCompanyqualifyfortheaforementionedtaxreductions.
V.Notestotheconsolidatedfinancialstatements1Cashatbankandonhand
Item
| Item | 2025 | 2024 |
| Cashonhand | 18,877 | 27,228 |
| Bankdeposits | 1,884,759,212 | 1,797,503,539 |
| Othermonetaryfunds | 5,833,715 | 317,363 |
| Total | 1,890,611,804 | 1,797,848,130 |
| Including:Totaloverseasdeposits | 70,392,228 | 33,384,691 |
Asat31December2025,detailsofrestrictedbankdepositsareasfollows：
| Item | 2025 | 2024 |
| Escrowaccountformigrantworkers'wages | - | 1,153,216 |
?
Asat31December2025,theGroup’stermdepositswithpreviousmaturityofmorethanthreemonthsisRMB45,650,000,withinterestrate1.30%-2.25%(31December2024:RMB78,650,000,withinterestrate1.70%-2.25%).Asat31December2025,theGroup’sothermonetaryassetsisasfollows:
?
Item
| Item | 2025 | 2024 |
| Alipayaccountbalance | 1,723,715 | 158,894 |
| Depositsforthecustoms | - | 134,076 |
| SecurityDepositforBankingPlatform | 4,110,000 | 24,393 |
| Total | 5,833,715 | 317,363 |
Asat31December2025,theGroupdidnothaveanyspecialinterestarrangementssuchastheestablishmentofjointfundmanagementaccountswithrelatedparties.2Billsreceivable
Classificationofbillsreceivable
| Item | 2025 | 2024 |
| Bankacceptancebills | 102,342 | 1,036,243 |
| Total | 102,342 | 1,036,243 |
Alloftheabovebillsareduewithinoneyear.
3Accountsreceivable
(1)Accountsreceivablebycustomertypeareasfollows:
Type
| Type | 31December2025 | 31December2024 |
| Amountsduefromrelatedparties | - | 1,458,339 |
| Amountsduefromothercustomers | 272,877,730 | 276,983,985 |
| Sub-total | 272,877,730 | 278,442,324 |
| Less:Provisionforbadanddoubtfuldebts | (7,945,006) | (7,612,723) |
| Total | 264,932,724 | 270,829,601 |
Asat31December2025,ownershiprestrictedaccountsreceivableisRMB73,330,179(31December2024:RMB35,917,860),referringtoNoteV.52.
(2)Theageinganalysisofaccountsreceivableisasfollows:
| Ageing | 2025 | 2024 |
| Within1year(inclusive) | 269,602,415 | 274,048,512 |
| Over1yearbutwithin2years(inclusive) | 390,478 | 747,104 |
| Over2yearsbutwithin3years(inclusive) | 656,993 | 2,122,990 |
| Over3years | 2,227,844 | 1,523,718 |
| Sub-total | 272,877,730 | 278,442,324 |
| Less:Provisionforbadanddoubtfuldebts | (7,945,006) | (7,612,723) |
| Total | 264,932,724 | 270,829,601 |
Theageingiscountedstartingfromthedatewhenaccountsreceivablearerecognised.
(3)Accountsreceivablebyprovisioningmethod
AtalltimestheGroupmeasurestheimpairmentlossforaccountsreceivableatanamountequaltolifetimeECLs,andtheECLsarebasedonthenumberofoverduedaysandthelossgivendefault.AccordingtothehistoricalexperienceoftheGroup,therearenosignificantdifferencesinthelossesofdifferentcustomergroups.Therefore,differentcustomergroupsarenotfurtherdistinguishedwhencalculatingimpairmentlossbasedontheoverdueinformation.
2025
Lossgivendefault
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.2% | 244,909,222 | 563,761 |
| Overduefor1to30days | 2.5% | 15,508,458 | 393,980 |
| Overduefor31to60days | 8.4% | 2,540,574 | 213,577 |
| Overduefor61to90days | 18.1% | 874,825 | 157,924 |
| Overduefor91to120days | 24.2% | 1,203,304 | 290,701 |
| Overduefor121to150days | 33.9% | 176,511 | 59,752 |
| Overduefor151to180days | 33.9% | 1,183,584 | 400,661 |
| Overduefor181to210days | 48.9% | 138,802 | 67,836 |
| Overduefor211to240days | 62.2% | 1,037,797 | 646,019 |
| Overduefor241to270days | 80.3% | 84,352 | 67,718 |
| Overduefor271to300days | 83.8% | 848,017 | 710,791 |
| Overduefor301to330days | 100.0% | 868,616 | 868,616 |
| Overduefor331to360days | 100.0% | 359,819 | 359,819 |
| Overduefor360days | 100.0% | 3,143,849 | 3,143,851 |
| Total | 2.9% | 272,877,730 | 7,945,006 |
2024
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.1% | 245,292,444 | 265,047 |
| Overduefor1to30days | 1.5% | 19,549,341 | 293,143 |
| Overduefor31to60days | 6.0% | 4,278,753 | 256,562 |
| Overduefor61to90days | 15.4% | 432,734 | 66,747 |
| Overduefor91to120days | 23.5% | 605,044 | 142,111 |
| Overduefor121to150days | 30.7% | 1,337,986 | 410,793 |
| Overduefor151to180days | 38.2% | 558,511 | 213,620 |
| Overduefor181to210days | 46.0% | 492,202 | 226,407 |
| Overduefor211to240days | 57.1% | 56,462 | 32,224 |
| Overduefor241to270days | 83.6% | 793,827 | 663,562 |
| Overduefor271to300days | 92.5% | 33,343 | 30,830 |
| Overduefor301to330days | 100.0% | 898,444 | 898,444 |
| Overduefor331to360days | 100.0% | 780 | 780 |
| Overduefor360days | 100.0% | 4,112,453 | 4,112,453 |
| Total | 2.7% | 278,442,324 | 7,612,723 |
Thelossgivendefaultismeasuredbasedontheactualcreditlossexperienceinthepast12months,andisadjustedtakingintoconsiderationthedifferencesamongtheeconomicconditionsduringthehistoricaldatacollectionperiod,thecurrenteconomicconditionsandtheeconomicconditionsduringtheexpectedlifetime.
(4)Movementsofprovisionsforbadanddoubtfuldebts:
| 2025 | 2024 | |
| Balanceatthebeginningoftheyear | (7,612,723) | (13,158,448) |
| Chargefortheyear | (5,053,219) | (3,956,483) |
| Recoveriesorreversalsduringtheyear | 4,720,936 | 9,502,208 |
| Balanceattheendoftheyear | (7,945,006) | (7,612,723) |
(5)Fivelargestaccountsreceivablebydebtorattheendoftheyear:
Name
| Name | RelationshipwiththeGroup | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Thirdparty | 52,857,155 | Within1year | 19.4% | 121,673 |
| DebtorTwo | Thirdparty | 13,396,411 | Within1year | 4.9% | 372,837 |
| DebtorThree | Thirdparty | 12,822,411 | Within1year | 4.7% | 383,384 |
| DebtorFour | Thirdparty | 11,874,833 | Within1year | 4.4% | 27,335 |
| DebtorFive | Thirdparty | 11,419,968 | Within1year | 4.2% | 327,102 |
| Total | 102,370,778 | 37.5% | 1,232,331 |
4Receivablesunderfinancing
| Item | Note | 2025 | 2024 |
| Billsreceivable | (1) | 228,073,841 | 230,960,211 |
(1)PledgedbillsreceivablebytheGroupattheendoftheyear:
Asat31December2025,therewasnopledgedbillsreceivable(31December2023:
Nil).
(2)Outstandingendorsedordiscountedbillsthathavenotmaturedattheendoftheyear
| Item | Amountderecognisedatyearend |
| Bankacceptancebills | 418,066,114 |
Asat31December2025,billsendorsedbytheGrouptootherpartieswhicharenotyetdueattheendoftheperiodisRMB418,066,114(31December2024:RMB261,965,866).Thenotesareusedforpaymenttosuppliersandconstructions.TheGroupbelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theGroupwouldundertakelimitedliabilityforthenotes.5Prepayments
(1)Prepaymentsbycategory:
| Item | 2025 | 2024 |
| Prepayments | 54,011,809 | 60,631,575 |
(2)Theageinganalysisofprepaymentsisasfollows:
| Ageing | 2025 | 2024 | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within1year(inclusive) | 52,950,895 | 98.0% | 59,383,101 | 97.9% |
| Over1yearbutwithin2years(inclusive) | - | - | 1,248,474 | 2.1% |
| Over2yearsbutwithin3years | 1,060,914 | 2.0% | - | - |
(inclusive)
| (inclusive) | ||||
| Total | 54,011,809 | 100.0% | 60,631,575 | 100.0% |
Theageingiscountedstartingfromthedatewhenprepaymentsarerecognised.
(3)Fivelargestprepaymentsbydebtorattheendoftheyear:
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Prepayments | 34,324,571 | Within1year | 63.6% | - |
| DebtorTwo | Prepayments | 6,667,700 | Within1year | 12.3% | - |
| DebtorThree | Prepayments | 1,590,394 | Within1year | 2.9% | - |
| DebtorFour | Prepayments | 1,501,066 | Within1year | 2.8% | - |
| DebtorFive | Prepayments | 1,050,000 | Within1year | 1.9% | - |
| Total | 45,133,731 | 83.5% | -? |
6Otherreceivables
| 31December2025 | 31December2024 | |
| Others | 127,713,309 | 264,598,394 |
(1)Othersbycustomertype:
| Customertype | 31December2025 | 31December2024 |
| Amountsduefromothercompanies | 150,284,639 | 268,325,284 |
| Sub-total | 150,284,639 | 268,325,284 |
| Less:Provisionforbadanddoubtfuldebts | (22,571,330) | (3,726,890) |
| Total | 127,713,309 | 264,598,394 |
(2)Theageinganalysisisasfollows:
| Ageing | 2025 | 2024 |
| Within1year(inclusive) | 32,124,454 | 227,970,834 |
| Over1yearbutwithin2years(inclusive) | 84,888,095 | 583,562 |
| Over2yearsbutwithin3years(inclusive) | 527,140 | 38,599,235 |
| Over3years | 32,744,950 | 1,171,653 |
| Sub-total | 150,284,639 | 268,325,284 |
| Less:Provisionforbadanddoubtfuldebts | (22,571,330) | (3,726,890) |
| Total | 127,713,309 | 264,598,394 |
Theageingiscountedstartingfromthedatewhenotherreceivablesarerecognised.
(3)Movementsofprovisionsforbadanddoubtfuldebts
| 2025 | 2024 | |
| Balanceatthebeginningoftheyear | (3,726,890) | - |
| Chargefortheyear | (18,844,440) | (3,726,890) |
| Balanceattheendoftheyear | (22,571,330) | (3,726,890) |
Asat31December2025,theGrouphasnootherreceivableswrittenoff(31December2024:Nil).
(4)Otherscategorisedbynature
Natureofotherreceivables
| Natureofotherreceivables | 2025 | 2024 |
| Compensationreceivableforthedisposalofavineyard(Note) | 81,666,088 | 200,666,088 |
| Landpurchasesandreservesreceivable | 31,768,902 | 37,268,902 |
| RefundofconsumptiontaxandVAT | 18,993,601 | 15,560,239 |
| Deposit | 5,868,084 | 6,163,682 |
| Housingmaintenancefunds | 2,703,605 | 2,640,911 |
| Pettycashreceivable | 45,182 | 28,781 |
| Others | 9,239,177 | 5,996,681 |
| Sub-total | 150,284,639 | 268,325,284 |
| Less:Provisionforbadanddoubtfuldebts | (22,571,330) | (3,726,890) |
| Total | 127,713,309 | 264,598,394 |
Note:TheCompanysignedaCompensationAgreementwiththePeople'sGovernmentof
ZhuqiaoTown,LaizhouCityandthePeople'sGovernmentofYidaoTown,LaizhouCity(bothcollectivelyreferredtoasthe“Transferees”)inDecember2024.PursuanttotheCompensationAgreement,theCompanytransferredassetsrelatedtothevineyardinZhuqiaoTowntotheTransfereesatanestimatedvaluationofRMB221,284,768asconsideration(compensation).AfterdeductingcompensationtotallingRMB19,618,680thathavebeenpaidtofarmersandcollectivelyownedassets,theactualcompensationreceivablebytheCompanyamountstoRMB201,666,088(taxinclusive).Asof16April2026,theCompanyhasreceivedatotalofRMB125,000,000incompensation.
(5)Fivelargestothers-bydebtorattheendoftheyear
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| DebtorOne | Compensationreceivableforthedisposalofavineyard | 81,666,088 | 1-2years | 54.3% | 8,166,609 |
| DebtorTwo | Landpurchasesandreservesreceivable | 31,768,902 | Over3years | 21.1% | 14,296,006 |
| DebtorThree | RefundofVAT | 17,784,087 | Within1year | 11.8% | - |
| DebtorFour | Housingmaintenancefunds | 2,666,219 | 2-3years | 1.8% | - |
| DebtorFive | Others | 2,174,305 | Within1year | 1.4% | 108,715 |
| Total | 136,059,601 | 90.4% | 22,571,330 |
7Inventories
(1)Inventoriesbycategory:
Item
| Item | 2025 | 2024 | ||||
| Bookvalue | Provisionforimpairmentofinventories | Carryingamount | Bookvalue | Provisionforimpairmentofinventories | Carryingamount | |
| Rawmaterials | 277,656,519 | - | 277,656,519 | 287,082,056 | - | 287,082,056 |
| Workinprogress | 1,876,067,662 | - | 1,876,067,662 | 1,921,142,415 | - | 1,921,142,415 |
| Finishedgoods | 699,103,803 | (16,750,775) | 682,353,028 | 714,804,585 | (18,958,500) | 695,846,085 |
| Total | 2,852,827,984 | (16,750,775) | 2,836,077,209 | 2,923,029,056 | (18,958,500) | 2,904,070,556 |
(2)Provisionforimpairmentofinventories:
| Item | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Disposalofsubsidiariesduringtheyear | Closingbalance |
| Recognised | Reversal | Decrease | |||
| Finishedgoods | 18,958,500 | 20,750,395 | (18,958,500) | (3,999,620) | 16,750,775 |
8Othercurrentassets
| Item | 2025 | 2024 |
| Inputtaxtobecredited | 61,109,041 | 63,225,758 |
| Righttorecoverreturnedgoods | 7,166,025 | 13,866,802 |
| Prepaidincometaxes | 3,745,396 | 1,408,482 |
| Deferredexpenses | 2,140,474 | 1,882,199 |
| Sub-total | 74,160,936 | 80,383,241 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 74,160,936 | 80,383,241 |
9Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
| Item | 2025 | 2024 |
| Investmentsinjointventures | 31,167,177 | 32,797,631 |
| Investmentsinassociates | 1,722,455 | 2,067,117 |
| Sub-total | 32,889,632 | 34,864,748 |
| Less:Provisionforimpairment | (6,233,435) | - |
| Total | 26,656,197 | 34,864,748 |
(2)Movementsoflong-termequityinvestmentsduringtheyearareasfollows:
Investee
| Investee | 2025Balanceatthebeginningoftheyear | Movementsduringtheyear | 2025Closingbalance | Balanceofprovisionforimpairmentattheendoftheyear | Shareholdingpercentage | |
| NewInvestment | (Losses)/Profitsfrominvestmentsunderequity-methodl | |||||
| Jointventures | ? | ? | ? | ? | ||
| SASL&MHoldings(“L&MHoldings”) | 32,797,631 | - | (1,630,454) | 31,167,177 | 6,233,435 | 55% |
| Associates | ? | ? | ? | ? | ? | ? |
| ShanghaiYufengBrandManagementCo.,Ltd.(Note1) | 383,720 | ?- | 11,120 | 394,840 | - | 10% |
| YantaiGuolongWineIndustryCo.,Ltd.(Note1) | 757,001 | ?- | 368 | 757,369 | - | 10%? |
| TaizhouChangyuWineryWineSalesCo.,Ltd.("TaizhouChangyu”).(Note2) | 926,396 | ?- | (356,150) | 570,246 | - | 10% |
| Sub-total | 2,067,117 | ?- | (344,662) | 1,722,455 | - | |
| Total | 34,864,748 | ?- | (1,975,116) | 32,889,632 | 6,233,435 | |
Note1:TheGrouphasappointedonedirectortoeachoftheseinvestees.Note2:TheGrouphasappointedtwodirectorstothisinvestee.
10Investmentproperties
Plantsand
buildings
| Plantsandbuildings | |
| Cost | |
| 31December2024and31December2025 | 81,165,619 |
| Accumulateddepreciation | ? |
| 31December2024 | (59,205,168) |
| Chargefortheyear | (2,060,223) |
| 31December2025 | (61,265,391) |
| Carryingamount | ? |
| 31December2025 | 19,900,228 |
| 31December2024 | 21,960,451 |
11Fixedassets
(1)Fixedassets
| Item | Plant&buildings | Machinery&equipment | Motorvehicles | Total |
| Cost | ||||
| 31December2024 | 5,857,616,706 | 2,849,771,289 | 22,112,010 | 8,729,500,005 |
| Purchases | 13,915,673 | 54,534,793 | 1,542,630 | 69,993,096 |
| Transfersfromconstructioninprogress | 13,110,436 | 7,519,994 | 148,767 | 20,779,197 |
| Disposalsorwritten-offsduringtheyear | (24,176,068) | (5,613,489) | (570,424) | (30,359,981) |
| Disposalofsubsidiariesduringtheyear | (8,514,910) | (214,746) | (9,781) | (8,739,437) |
| 31December2025 | 5,851,951,837 | 2,905,997,841 | 23,223,202 | 8,781,172,880 |
| Accumulateddepreciation | ? | ? | ? | ? |
| 31December2024 | (1,450,718,306) | (1,696,378,973) | (20,367,548) | (3,167,464,827) |
| Chargefortheyear | (157,055,747) | (151,375,055) | (1,554,978) | (309,985,780) |
| Disposalsorwritten-offsduringtheyear | 7,877,779 | 2,536,230 | 399,637 | 10,813,646 |
| Disposalofsubsidiariesduringtheyear | 4,587,079 | 9,779 | 9,238 | 4,606,096 |
| 31December2025 | (1,595,309,195) | (1,845,208,019) | (21,513,651) | (3,462,030,865) |
| Provisionforimpairment | ? | ? | ? | ? |
| 31December2024and31December2025 | - | (10,363,383) | - | (10,363,383) |
| Carryingamount | ? | ? | ? | ? |
| 31December2025 | 4,256,642,642 | 1,050,426,439 | 1,709,551 | 5,308,778,632 |
| 31December2024 | 4,406,898,400 | 1,143,028,933 | 1,744,462 | 5,551,671,795 |
Asat31December2025,ownershiprestrictednetvalueoffixedassetsisRMB34,165,994(31December2024:RMB32,467,803),referringtoNoteV.52.
(2)Temporarilyidlefixedassets
Item
| Item | Cost | Accumulateddepreciation | Provisionforimpairment | Carryingamount |
| Machineryequipment | 29,423,698 | (19,060,315) | (10,363,383) | - |
| Total | 29,423,698 | (19,060,315) | (10,363,383) | - |
(3)Fixedassetsleasedoutunderoperatingleases
| Item | Carryingamountattheendoftheyear |
| Plant&buildings | 83,302,814 |
| Machineryequipment | 931 |
Fixedassetspendingcertificatesofownership
| Item | Carryingamount | Reasonwhythecertificatesarepending |
| Dormitories,mainbuildingandreceptionbuildingofChateauChangge | 250,144,458 | Processing |
| Europeantown,mainbuildingandservicebuildingofAFIP | 147,270,890 | Processing |
| FermentationshopandworkshopofZhangyu(Ningxia) | 769,349 | Processing |
| Office,experimentbuildingandworkshopofFermentationCentre | 3,389,424 | Processing |
| FermentationshopofZhangyu(Jingyang) | 3,490,263 | Processing |
| FinishedgoodswarehouseandworkshopofKylinPackaging | 1,762,103 | Processing |
| Others | 712,724 | Processing |
ThebuildingswithoutpropertycertificateabovehavenosignificantimpactontheGroup’smanagement.12Constructioninprogress
(1)Constructioninprogress
| Project | 2025 | 2024 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| RenovationofChateauChangge | 2,844,037 | - | 2,844,037 | 91,743 | - | 91,743 |
| RenovationoftheChangyuWineCultureMuseum | 702,063 | - | 702,063 | - | - | - |
| Refurbishmentofwineproductionlineequipment | - | - | - | 7,202,959 | - | 7,202,959 |
| UpgradeandrenovationofthemainbuildingofChateauChangyuAFIP | - | - | - | 1,128,971 | - | 1,128,971 |
| OtherCompanies’ConstructionProject | 766,988 | - | 766,988 | 1,753,699 | - | 1,753,699 |
| Total | 4,313,088 | - | 4,313,088 | 10,177,372 | - | 10,177,372 |
(2)Movementsofmajorconstructionprojectsinprogressduringtheyear
Item
| Item | Budget(RMBmillion) | Openingbalance | Additionsduringtheyear | Transferstofixedassets | Othertransfersout | Closingbalance | Percentageofactualcosttobudget(%) | Accumulatedcapitalisedinterest | Attributableto:Interestcapitalisedfortheyear | Interestrateforcapitalisationin2025(%) | Sourcesoffunding |
| RenovationofChateauChangge | 4 | 91,743 | 2,752,294 | - | - | 2,844,037 | 79% | - | - | - | Self-raised |
| RenovationoftheChangyuWineCultureMuseum | 3 | - | 702,063 | - | - | 702,063 | 26% | - | - | - | Self-raised |
| Refurbishmentofwineproductionlineequipment | 9 | 7,202,959 | 113,208 | (7,316,167) | - | - | 86% | - | - | - | Self-raised |
| UpgradeandrenovationofthemainbuildingofChateauChangyuAFIP | 3 | 1,128,971 | 1,253,428 | - | (2,382,399) | - | 80% | - | - | - | Self-raised |
| Industrialparkenhancementprojectfortourismpurpose | 12 | - | 11,556,851 | (11,556,851) | - | - | 100% | - | - | - | Self-raised |
13Bearerbiologicalassets
Bearerbiologicalassetsarevines,whichmeasuredincostmethod.
Item
| Item | Immaturebiologicalassets | Maturebiologicalassets | Total |
| Originalbookvalue | |||
| 31December2024 | 16,596,341 | 107,115,596 | 123,711,937 |
| Additionsduringtheyear | ? | ? | ? |
| -Increaseincultivated | 974,076 | 50,459 | 1,024,535 |
| -Transferredtomature | - | - | - |
| Decreaseduringtheyear | - | (1,408,323) | (1,408,323) |
| 31December2025 | 17,570,417 | 105,757,732 | 123,328,149 |
| Accumulatedamortisation | ? | ? | ? |
| 31December2024 | - | (57,227,973) | (57,227,973) |
| Chargefortheyear | - | (6,437,416) | (6,437,416) |
| Decreaseduringtheyear | - | 435,954 | 435,954 |
| 31December2025 | - | (63,229,435) | (63,229,435) |
| Carryingamount | ? | ? | ? |
| 31December2025 | 17,570,417 | 42,528,297 | 60,098,714 |
| 31December2024 | 16,596,341 | 49,887,623 | 66,483,964 |
Asat31December2025,thereisnobiologicalassetwithownershiprestricted(31December2024:Nil).Asat31December2025,noprovisionforimpairmentofbiologicalassetoftheGroupwasrecognisedasthereisnoanyindicationexists(31December2024:Nil).14Right-of-useassets
Asalessee
| Item | Plant&buildings | Lands | Others | Total |
| Cost | ||||
| Balanceatthebeginningoftheyear | 82,555,594 | 84,681,091 | 1,697,986 | 168,934,671 |
| Additionsduringtheyear | 2,790,749 | - | - | 2,790,749 |
| Decreasesduringtheyear | (42,518,483) | - | (1,697,986) | (44,216,469) |
| Balanceattheendoftheyear | 42,827,860 | 84,681,091 | - | 127,508,951 |
| Accumulateddepreciation | ? | ? | ? | ? |
| Balanceatthebeginningoftheyear | (57,562,203) | (37,913,220) | (1,697,986) | (97,173,409) |
| Chargefortheyear | (15,656,522) | (2,624,440) | - | (18,280,962) |
| Decreasesduringtheyear | 41,499,943 | - | 1,697,986 | 43,197,929 |
| Balanceattheendoftheyear | (31,718,782) | (40,537,660) | - | (72,256,442) |
| Carryingamounts | ? | ? | ? | ? |
| Attheendoftheyear | 11,109,078 | 44,143,431 | - | 55,252,509 |
| Atthebeginningoftheyear | 24,993,391 | 46,767,871 | - | 71,761,262 |
15Intangibleassets
Item
| Item | Landuserights | Softwarelicenses | Trademarks | Total |
| Originalbookvalue | ||||
| 31December2024 | 444,520,847 | 105,174,442 | 191,250,359 | 740,945,648 |
| Additionsduringtheyear | ? | ? | ? | ? |
| -Purchase | 460,557 | 2,171,883 | 422,696 | 3,055,136 |
| Decreasesduringtheyear | ? | ? | ? | ? |
| -Disposalorretirement | - | (270,056) | - | (270,056) |
| -Disposalofsubsidiaries | - | (150,933) | - | (150,933) |
| 31December2025 | 444,981,404 | 106,925,336 | 191,673,055 | 743,579,795 |
| Accumulatedamortisation | ? | ? | ? | ? |
| 31December2024 | (114,683,586) | (81,965,845) | (16,589,834) | (213,239,265) |
| Additionsduringtheyear | ? | ? | ? | ? |
| -Chargefortheyear | (7,209,284) | (7,948,008) | (2,605,875) | (17,763,167) |
| Decreasesduringtheyear | ? | ? | ? | ? |
| -Disposalorretirement | - | 270,056 | - | 270,056 |
| -Disposalofsubsidiaries | - | 83,218 | - | 83,218 |
| 31December2025 | (121,892,870) | (89,560,579) | (19,195,709) | (230,649,158) |
| Carryingamount | ? | ? | ? | ? |
| 31December2025 | 323,088,534 | 17,364,757 | 172,477,346 | 512,930,637 |
| 31December2024 | 329,837,261 | 23,208,597 | 174,660,525 | 527,706,383 |
Asat31December2025,theGrouphaslanduserightwithinfiniteusefullivesofRMB32,719,900(31December2024:RMB32,503,590),representingthefreeholdlandheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstateunderrelevantChileandAustralialaws,onwhichtheamortisationisnotrequired.Asat31December2025,theGroup’strademarkrightswithindefiniteusefullifeconsistoftrademarkrightsheldbyVi?aIndómitathatwasvaluedatRMB144,921,810(31December2024:RMB144,921,810),andtrademarkrightsheldbyKilikanoonWinesthatwasvaluedatRMB11,818,386(31December2024:RMB11,818,386).Therecoverableamountofthetrademarkisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflowsgeneratedfromtheassetgrouptowhichthesingleassetsoftrademarkrightbelongs.Themanagementpreparesthecashflowprojectionforfuture5years(the“projectingperiod”)basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the“subsequentperiod”).ThepretaxdiscountratesappliedtocashflowprojectionsbyVi?aIndómitaandKilikanoonWineswere12.3%(2024:12.5%)and13.1%(2024:13.6%),respectively.Theestimatedlong-termaveragegrowthrateofcashflowsafter5yearsis0.0%-2.5%(2024:0.0%-2.0%),whichrepresentsthelong-termaveragegrowthratefortheindustryortheregioninwhichthecompanyoperates.Accordingtotheresultofimpairmentassessment,bytheendof31December2025,themanagementbelievesthereisnoimpairmentlossonthosetrademarkswithinfiniteusefullivesoftheGroup(31December2024:Nil).Asat31December2025,thereisnoownershiprestrictednetvalueofintangibleassets.(31December2024:Nil).
16Goodwill
(1)Changesingoodwill
Nameofinvesteeoreventsfrom
whichgoodwillarose
| Nameofinvesteeoreventsfromwhichgoodwillarose | Note | 31December2024 | Additionsduringtheyear | Disposalsduringtheyear | 31December2025 |
| Originalbookvalue | |||||
| EtablissementsRoulletFransac(“RoulletFransac”) | (a)(b) | 13,112,525 | -? | (13,112,525)? | - |
| HaciendayVi?edosMarquésdelAtrio,S.L(“Hacienda”) | (a) | 92,391,901 | -? | -? | 92,391,901 |
| ChileIndomitaWineGroup | (a) | 6,870,115 | -? | -? | 6,870,115 |
| AustraliaKilikanoonEstate | (a) | 37,063,130 | -? | -? | 37,063,130 |
| Sub-total | 149,437,671 | - | (13,112,525)? | 136,325,146 | |
| Impairmentprovision | ? | ? | ? | ? | |
| HaciendayVi?edosMarquésdelAtrio,S.L(“Hacienda”) | (11,225,459) | - | - | (11,225,459) | |
| AustraliaKilikanoonEstate | (37,063,130) | -? | -? | (37,063,130) | |
| Sub-total | (48,288,589) | - | - | (48,288,589) | |
| Carryingamount | 101,149,082 | - | (13,112,525) | 88,036,557 |
(a)TheGroupacquiredFransacSales,HaciendaandMirefleurs,ChileIndomitaWine
GroupandAustraliaKilikanoonEstateinDecember2013,September2015,July2017andJanuary2018respectively,resultinginrespectivegoodwillamountingtoRMB13,112,525,RMB92,391,901,RMB6,870,115andRMB37,063,130.Thegoodwillhadbeenallocatedtocorrespondingassetgroupsforimpairmenttesting.(b)InJune2025,theGrouptransferred100%equityinterestinEtablissementsRoullet
Fransac,awholly-ownedsubsidiaryofFrancsChampsParticipationsSAS(“FrancsChamps”),resultinginareductionofRMB13,112,525ingoodwill.
(2)Provisionforimpairmentofgoodwill
TheGrouphasallocatedtheabovegoodwilltorelevantassetgroupsforimpairmenttesting.Asat31December2025,AustraliaKilikanoonEstatehasmadefullprovisionforimpairmentofgoodwillandAtriohasmadeprovisionforimpairmentamountedtoRMB11,225,459forthecurrentperiod.Therecoverableamountoftheassetgroupisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflows.Themanagementpreparesthecashflowprojectionforfuture5years(the“projectingperiod”)basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the“subsequentperiod”).ThepretaxdiscountrateusedincalculatingtherecoverableamountsofHaciendaandMirefleurs,IndomitaWineare12.6%and12.3%,respectively(2024:11.7%and12.5%).Thekeyassumptionisthegrowthrateofannualrevenueofrelevantsubsidiaries,whichiscomputedbasedontheexpectedgrowthrateofeachsubsidiaryandlong-termaveragegrowthratesofrelevantindustries.TheannualrevenuegrowthratesforDicotPartnersSLandVi?aIndómitaduringthebudgetperiodwere4.9%to14.8%and2.9%to13.9%,respectively;therevenuegrowthratesduringthestableperiodwere1.5%and2.5%,respectively.Otherrelevantkeyassumptionisbudgetgrossprofitmargin,whichisdeterminedbasedonthehistoricalperformanceofeachsubsidiaryanditsexpectationsformarketdevelopment.TheaveragegrossprofitmarginsforDicotPartnersSLandVi?aIndómitaduringthebudgetperiodwere
42.1%and40.7%to45.4%,respectively;theaveragegrossprofitmarginsduringthestableperiodwere42.1%and45.4%,respectively.
17Long-termdeferredexpenses
Item
| Item | 31December2024 | Additionsduringtheyear | Amortisationfortheyear | 31December2025 |
| Landrequisitionfee | 41,485,895 | - | (1,112,922) | 40,372,973 |
| Greeningfee | 101,735,181 | - | (8,503,625) | 93,231,556 |
| Leaseholdimprovement | 149,320,615 | 6,422,034 | (10,218,302) | 145,524,347 |
| Others | 6,252,011 | 188,822 | (2,342,653) | 4,098,180 |
| Total | 298,793,702 | 6,610,856 | (22,177,502) | 283,227,056 |
18Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetsandliabilities
| Item | 31December2025 | 31December2024 | ||
| Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | |
| Deferredtaxassets: | ||||
| Provisionforimpairmentofassets | 57,630,494 | 14,539,423 | 40,661,496 | 10,437,775 |
| Unrealisedprofitsofintra-grouptransactions | 416,323,375 | 104,080,844 | 417,770,236 | 104,442,560 |
| Unpaidbonus | 120,048,950 | 30,012,237 | 123,258,072 | 30,814,518 |
| Terminationbenefits | 5,316,990 | 1,329,247 | 6,739,412 | 1,684,853 |
| Deductibletaxlosses | 250,789,836 | 61,117,483 | 280,061,166 | 68,206,780 |
| Deferredincome | 19,386,932 | 4,151,683 | 25,938,817 | 5,540,954 |
| Effectoftheleasestandard | 1,798,945 | 449,737 | 3,462,626 | 865,659 |
| Sub-total | 871,295,522 | 215,680,654 | 897,891,825 | 221,993,099 |
| Deferredtaxliabilities: | ? | ? | ? | ? |
| Revaluationduetobusinesscombinationsinvolvingentitiesnotundercommoncontrol | 22,236,051 | 6,435,261 | 24,447,790 | 7,076,871 |
| Effectoftheleasestandard | 714,534 | 178,633 | 1,069,168 | 267,294 |
| Sub-total | 22,950,585 | 6,613,894 | 25,516,958 | 7,344,165 |
(2)Detailsofunrecogniseddeferredtaxassets
| Item | 2025 | 2024 |
| Deductibletaxlosses | 546,736,496 | 478,477,359 |
(3)Expirationofdeductibletaxlossesforunrecogniseddeferredtaxassets
| Year | 2025 | 2024 |
| 2025 | - | 70,528,510 |
| 2026 | 45,528,669 | 60,274,856 |
| 2027 | 123,557,586 | 123,557,586 |
| 2028 | 114,766,551 | 117,444,729 |
| 2029 | 106,434,373 | 106,671,678 |
| 2030 | 156,449,317 | - |
| Total | 546,736,496 | 478,477,359 |
19Othernon-currentassets
Item
| Item | 2025 | 2024 |
| PrepaidforConstructionfee | 43,735 | 3,554,409 |
20Short-termloans
| Item | 2025 | 2024 |
| Unsecuredloans | 68,518,537 | 63,222,270 |
| Mortgagedloans | 158,792,031 | 126,552,126 |
| Guaranteedloans | 13,364,220 | 26,365,950 |
| Total | 240,674,788 | 216,140,346 |
Asat31December2025,detailsofshort-termborrowingswereasfollows:
| Amount | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | |
| RMB | % | % | |||
| Mortgagedloans(USD) | 12,125,000 | 85,461,852 | Fixed | 5.34%-5.85% | 5.34%-5.85% |
| Creditloans(RMB) | 50,000,000 | 50,000,000 | Floating | 1YEARLPR-0.95% | 2.11% |
| Mortgagedloans(EUR) | 8,904,156 | 73,330,179 | Floating | 2.20%-3.10% | 2.20%-3.10% |
| Securedloan(AUD) | 2,850,000 | 13,364,220 | Floating | BBSW+1.50% | 5.90% |
| Creditloans(USD) | 1,000,000 | 7,048,400 | Fixed | 5.65% | 5.65% |
| Creditloans(EUR) | 1,392,768 | 11,470,137 | Floating | 3.00%-3.90% | 3.00%-3.90% |
| Total | ? | 240,674,788 | ? | ? | ? |
?On31December2025,ChileIndomitaWineGrouppledgeditsfixedassetstoBancoScotiabankandBancodeChiletoborrowUSD12,125,000(equivalenttoRMB85,461,852)(31December2024:USD12,375,000(equivalenttoRMB90,634,266).?Asat31December2025,theeuro-denominatedmortgageborrowingamountedtoEUR8,904,156(equivalenttoRMB73,330,179)(31December2024:EUR4,772,694,equivalenttoRMB35,917,860),whicharosefromaccountsreceivablefactoringarrangedbyDicotPartnersSLwithbanksincludingBancoSantander,BBVA,Bankinter.?On31December2025,thesecuredloanrepresentedthesecuredloanofAustralia
KilikanoonEstateofAUD2,850,000(equivalenttoRMB13,364,220)(31December2024:
AUD5,850,000,equivalenttoRMB26,365,950).TheguaranteewasprovidedbytheCompanyforKilikanoonWines.
21Accountspayable
(1)Detailsofaccountspayableareasfollows:
Ageing
| Ageing | 2025 | 2024 |
| Within1year(inclusive) | 318,780,204 | 413,307,306 |
| Over1yearbutwithin2years(inclusive) | 795,028 | 2,486,147 |
| Over2yearsbutwithin3years(inclusive) | 748,646 | 372,036 |
| Over3years | 1,608,290 | 1,344,950 |
| Total | 321,932,168 | 417,510,439 |
(2)Thereisnosignificantaccountspayablewithageingofmorethanoneyear.22Contractliabilities
| Item | Asat31December2025 | Asat31December2024 |
| Receiptinadvance | 134,708,926 | 127,855,694 |
| Withholdingsalesrebates | 358,537 | 234,659 |
| Total | 135,067,463 | 128,090,353 |
ContractliabilitiesprimarilyrelatetotheGroup’sadvancesfromsalescontractsofspecificcustomersandthewithholdingsalesrebates.Relevantcontractliabilitiesarerecognisedasrevenuewhenthecontrolofthegoodsistransferredtothecustomer.23Employeebenefitspayable
(1)Employeebenefitspayable:
| Note | 31December2024 | Additionsduringtheyear | Decreaseduringtheyear | 31December2025 | |
| Short-termemployeebenefits | (2) | 159,642,385 | 372,668,332 | (375,423,515) | 156,887,202 |
| Post-employmentbenefits-definedcontributionplans | (3) | 323,120 | 43,083,160 | (43,084,855) | 321,425 |
| Terminationbenefits | 6,739,412 | 2,354,473 | (3,776,895) | 5,316,990 | |
| Total | 166,704,917 | 418,105,965 | (422,285,265) | 162,525,617 |
(2)Short-termemployeebenefits
31December2024
| 31December2024 | Additionsduringtheyear | Decreaseduringtheyear | 31December2025 | |
| Salaries,bonuses,allowances | 156,491,000 | 322,837,197 | (325,398,698) | 153,929,499 |
| Staffwelfare | 1,270,097 | 14,312,577 | (14,297,118) | 1,285,556 |
| Socialinsurance | 302,052 | 19,788,935 | (19,892,484) | 198,503 |
| Medicalinsurance | 302,020 | 18,584,860 | (18,688,447) | 198,433 |
| Work-relatedinjuryinsurance | 32 | 1,196,720 | (1,196,682) | 70 |
| Maternityinsurance | - | 7,355 | (7,355) | - |
| Housingfund | 38,581 | 12,672,209 | (12,668,009) | 42,781 |
| Labourunionfee,staffandworkers’educationfee | 1,540,655 | 3,057,414 | (3,167,206) | 1,430,863 |
| Total | 159,642,385 | 372,668,332 | (375,423,515) | 156,887,202 |
(3)Post-employmentbenefits-definedcontributionplans
| 31December2024 | Additionsduringtheyear | Decreaseduringtheyear | 31December2025 | |
| Basicpensioninsurance | 321,807 | 41,662,642 | (41,664,434) | 320,015 |
| Unemploymentinsurance | 1,313 | 1,420,518 | (1,420,421) | 1,410 |
| Total | 323,120 | 43,083,160 | (43,084,855) | 321,425 |
24Taxespayable
| Item | 2025 | 2024 |
| Value-addedtax | 27,831,972 | 39,051,407 |
| Consumptiontax | 42,140,635 | 40,806,933 |
| Corporateincometax | 69,531,572 | 88,479,855 |
| Individualincometax | 786,256 | 828,712 |
| Taxontheuseofurbanland | 2,302,126 | 2,301,066 |
| Educationsurcharges | 3,221,254 | 3,857,746 |
| Urbanmaintenanceandconstructiontax | 4,495,333 | 5,372,605 |
| Others | 8,249,786 | 8,448,730 |
| Total | 158,558,934 | 189,147,054 |
25Otherpayables
| Note | 31December2025 | 31December2024 | |
| Others | (1) | 332,855,775 | 398,149,521 |
| Total | 332,855,775 | 398,149,521 |
(1)Others
(a)Detailsofothersbynatureareasfollows:
Item
| Item | 2025 | 2024 |
| Depositpayabletodealer | 156,861,946 | 170,639,777 |
| Advertisingfeepayable | 43,523,608 | 44,729,221 |
| Payablesforrepurchaseoftreasuryshares | 37,880,941 | 70,704,426 |
| Trademarks | 17,082,233 | 18,630,742 |
| Freightchargespayable | 18,179,784 | 21,041,131 |
| Depositsduetosuppliers | 16,393,705 | 16,515,150 |
| Equipmentandconstructionfeepayable | 11,523,560 | 13,160,841 |
| Contractingfeepayable | 3,942,153 | 3,179,094 |
| Staffdeposit | 1,480,476 | 735,016 |
| Others | 25,987,369 | 38,814,123 |
| Total | 332,855,775 | 398,149,521 |
(b)Therearenosignificantothersagedoveroneyearaccuredthisyear.26Othercurrentliabilities
| Item | 2025 | 2024 |
| Refundliabilitiesarisingfromrightsofreturn | 7,613,210 | 16,425,141 |
| Taxtobetransferredoutassales | 19,580,652 | 24,339,101 |
| Total | 27,193,862 | 40,764,242 |
27Non-currentliabilitiesduewithinoneyear
Non-currentliabilitiesduewithinoneyearbycategoryareasfollows:
| Item | 2025 | 2024 |
| Long-termloansduewithinoneyear | 65,453,059 | 61,161,578 |
| Leaseliabilitiesduewithinoneyear | 9,987,851 | 18,788,191 |
| Total | 75,440,910 | 79,949,769 |
28Long-termloans
Long-termloansbycategory
| Item | Note | 2025 | 2024 |
| Creditloans | 117,827,899 | 111,798,781 | |
| Less:Long-termloansduewithinoneyear | V.27 | 65,453,059 | 61,161,578 |
| Total | 52,374,840 | 50,637,203 |
Asat31December2025,detailsoflong-termborrowingswereasfollows:
Amount
| Amount | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | Long-termloansduewithinoneyear | Long-termloansdueafteroneyear | |
| RMB | % | % | |||||
| Creditloans(EUR) | 517,231 | 4,259,657 | Fixed | 2.80%-4.65% | 2.80%-4.65% | 2,619,989 | 1,639,668 |
| Creditloans(EUR) | 13,790,085 | 113,568,242 | Floating | 3.10%-5.83% | 3.10%-5.83% | 62,833,070 | 50,735,172 |
| Total | ? | 117,827,899 | 65,453,059 | 52,374,840 |
Asat31December2025,Creditloans(EUR)wereEUR14,307,316borrowedbyBancoSantander,BBVA,CajaRuraldeNavarr,CaixaBanketc.(equivalentofRMB117,827,899)(31December2024:EUR14,855,599,equivalentofRMB111,798,781).29Leaseliabilities
| Item | Note | 2025 | 2024 |
| Long-termleaseliabilities | ? | 29,425,681 | 46,331,020 |
| Less:Leaseliabilitiesduewithinoneyear | V.27 | 9,987,851 | 18,788,191 |
| Total | ? | 19,437,830 | 27,542,829 |
ThespecificarrangementofleasesactivitiesoftheGroupreferstoNote53.30Deferredincome
| Item | 31December2024 | Additionsduringtheyear | Decreaseduringtheyear | 31December2025 |
| Governmentgrants | 25,938,817 | 1,800,000 | (8,351,885) | 19,386,932 |
Governmentgrants:
Liability
| Liability | 31December2024 | Additionsofgovernmentgrantsduringtheyear | Amountsrecognisedinotherincomeduringtheyear | 31December2025 | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 8,200,000 | - | (4,100,000) | 4,100,000 | Governmentgrantsrelatedtoassets |
| Retainingwallsubsidies | 7,847,333 | 1,800,000 | (1,245,143) | 8,402,190 | Governmentgrantsrelatedtoassets |
| Xinjiangindustrialrevitalisationandtechnologicaltransformationproject | 7,110,000 | - | (1,422,000) | 5,688,000 | Governmentgrantsrelatedtoassets |
| Specialfundforefficientwater-savingirrigationproject | 667,000 | - | (162,000) | 505,000 | Governmentgrantsrelatedtoassets |
| Subsidyforeconomicandenergy-savingtechnologicaltransformationprojects | 256,600 | - | (128,300) | 128,300 | Governmentgrantsrelatedtoassets |
| Subsidiesforconstructionofscenicspots | 195,184 | - | (43,730) | 151,454 | Governmentgrantsrelatedtoassets |
| Improvementofservicefacilitiesinscenicspots | 264,000 | - | (29,367) | 234,633 | Governmentgrantsrelatedtoassets |
| TechnologyresearchandindustrialsubsidiesforutilizingChina-producedoakforwinemaking | 1,398,700 | - | (1,221,345) | 177,355 | Relatedtoincome |
| Total | 25,938,817 | 1,800,000 | (8,351,885) | 19,386,932 |
31Sharecapital
| Balanceatthebeginningoftheyear | Changesduringtheyear | Balanceattheendoftheyear | ||
| Releaseoflock-upshares | Cancellationofrepurchasedshares | |||
| UnrestrictedRMBordinaryshares | 455,181,295 | - | - | 455,181,295 |
| RestrictedRMBordinaryshares(Note1) | 4,639,398 | - | (2,153,772) | 2,485,626 |
| Foreignshareslisteddomestically(Note2) | 212,003,207 | - | (12,430,000) | 199,573,207 |
| Totalshares | 671,823,900 | - | (14,583,772) | 657,240,128 |
Note1:On25July2025,theGroupconvenedits3rdmeetingoftheCompensation
Committee,the2ndmeetingofthe10thBoardofDirectors,andthe1stmeetingofthe9thBoardofSupervisorsfor2025.Duringthesemeetings,thefollowingproposalsweredeliberatedandapproved,theProposalontheFailuretoMeettheUnlockingConditionsfortheSecondUnlockingPeriodundertheCompany’s2023RestrictedShareIncentivePlan,andtheProposalontheRepurchase,Cancellation,andPriceAdjustmentofCertainRestrictedSharesundertheCompany’s2023RestrictedShareIncentivePlan.On12August2025,theGrouphelditsfirstextraordinarygeneralmeetingfor2025,duringwhichtheProposalontheRepurchase,Cancellation,andPriceAdjustmentofCertainRestrictedSharesundertheCompany’s2023RestrictedShareIncentivePlanwasdeliberatedandapproved.TheGrouprepurchasedandcancelled289,467restrictedsharesthathadbeengrantedbutnotyetunlockedduetodepartureofincentiverecipientsorchangesintheirrolesthatrenderedthemnolongerineligiblefortheCompany’s2023RestrictedShareIncentivePlan.TheGroupalsorepurchasedandcancelled1,864,305restrictedsharesthatfailedtounlockasrecipientsfailedtomeetindividualperformancetargetsduringthesecondunlockingperiod.Consequently,atotalof2,153,772restrictedsharedwererepurchasedandcancelled.TheaforementionedrepurchaseandcancellationresultedinadecreaseofRMB2,153,772intheGroup’ssharecapital,adecreaseofRMB30,669,713incapitalreserve,andareductionofRMB32,823,485intreasurysharesin2025.Note2:TheGroupheldthe11thmeetingofthe9thBoardofDirectorson16April2025,and
the2024annualgeneralmeetingon23May2025,duringwhichtheProposalonRepurchasingCertainoftheCompany’sForeign-InvestedSharesListedinChina(BShares)wasdeliberatedandapproved.Between25June2025and8September2025,theGrouprepurchased12,430,000BsharesinaggregatebywayofcallauctionthroughthespecialaccountforrepurchaseatatotalamountofRMB99,855,332.TheGroupcompletedde-registrationoftheseBshareswithShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.on17December2025.ThetransactionresultedinadecreaseofRMB12,430,000intheGroup’ssharecapital,adecreaseofRMB87,425,332incapitalreserve,aswellasanincreaseandsubsequentdecreaseofRMB99,855,332intreasuryshares.32Capitalreserve
Items
| Items | Note | 31December2024 | Additionsduringtheyear | Decreaseduringtheyear | 31December2025 |
| Sharepremium | (1) | 451,532,723 | - | (118,095,045) | 333,437,678 |
| Others | 30,610,824 | - | - | 30,610,824 | |
| Total | ? | 482,143,547 | - | (118,095,045) | 364,048,502 |
(1)Duringthereportingperiod,theGrouprepurchasedandcancelled12,430,000Bshares
oftheCompany,resultinginadecreaseofRMB87,425,332insharepremium.RefertoNoteV.31fordetails.Duringthereportingperiod,theGrouprepurchasedandcancelled2,153,772restrictedshares,resultinginadecreaseofRMB30,669,713insharepremium.SeeNoteV.31fordetails.
33Treasuryshares
Item
| Item | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Balanceattheendoftheyear |
| Treasuryshares | 70,704,426 | 99,855,332 | (132,678,817) | 37,880,941 |
| Total | 70,704,426 | 99,855,332 | (132,678,817) | 37,880,941 |
Duringthereportingperiod,theGrouprepurchasedandcancelledcertainrestrictedsharesduetodepartureofincentiverecipientsorchangesintheirrolesthatrenderedthemnolongerineligiblefortheCompany’s2023RestrictedShareIncentivePlan.ThisresultedinadecreaseofRMB289,467insharecapital.TheGroupalsorepurchasedandcancelledrestrictedsharesthatfailedtounlockduetorecipientsnotmeetingindividualperformancetargetsduringthesecondunlockingperiod.ThisresultedinadecreaseofRMB1,864,305insharecapitalandadecreasedofRMB32,823,485intreasurysharesaccordingly.Fordetails,seeNoteV.31.TheGrouprepurchasedandcancelled12,430,000Bshares,resultinginanincreaseanddecreaseintreasurysharesofRMB99,855,332respectivelyduringtheperiod.PleaserefertonoteV.31.34Othercomprehensiveincome
| Item | BalanceatthebeginningoftheyearattributabletoshareholdersoftheCompany | Accruedduringtheyear | BalanceattheendoftheyearattributabletoshareholdersoftheCompany | ||||
| Before-taxamount | Less:Previouslyrecognisedamounttransferredtoprofitorloss | Less:Incometaxexpenses | Net-of-taxamountattributabletoshareholdersoftheCompany | Net-of-taxamountattributabletonon-controllinginterests | |||
| Itemsthatmaybereclassifiedtoprofitorloss | |||||||
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | (39,714,972) | 25,903,830 | - | - | 23,385,262 | 2,518,568 | (16,329,710) |
35Surplusreserve
| Item | 31December2025 | 31December2024 |
| Statutorysurplusreserve | 342,732,000 | 342,732,000 |
InaccordancewiththeCompanyLawandtheArticlesofAssociationCompany,theCompanyappropriated10%ofitsnetprofittostatutorysurplusreserve.Theappropriationtothestatutorysurplusreservemaybeceasedwhentheaccumulatedappropriationreachesover50%oftheregisteredcapitaloftheCompany.TheCompanydoesnotappropriatenetprofittothesurplusreservein2025assurplusreserveoftheCompanyisabove50%oftheregisteredcapital.TheCompanycanappropriatediscretionarysurplusreserveafterappropriationofthestatutorysurplusreserve.Discretionarysurplusreservecanbeutilisedtooffsetthedeficitorincreasethesharecapitalafterapproval.
36Retainedearnings
Item
| Item | Note | 2025 | 2024 |
| Retainedearningsatthebeginningoftheyear | 9,232,928,370 | 9,273,629,318 | |
| Add:NetprofitsfortheyearattributabletoshareholdersoftheCompany | 71,291,303 | 305,210,999 | |
| Less:Dividendstoordinaryshares | (1) | (266,782,075) | (345,911,947) |
| Retainedearningsattheendoftheyear | (2) | 9,037,437,598 | 9,232,928,370 |
(1)Dividendsinrespectofordinarysharesdeclaredduringtheyear
AsapprovedbythegeneralmeetingofshareholdersonMay23,2025,theCompanydistributedcashdividendsofRMB0.4pershare(2024:RMB0.5pershare)tocommonshareholdersonJune20,2025,totalingRMB268,729,560(2024:RMB346,124,780).Duringthereportingperiod,theGrouprepurchasedandcancelled2,153,772restrictedsharesgrantedundertheGroup’sRestrictedShareIncentivePlan,andrecoveredcashdividendsofRMB1,947,485.
(2)Retainedearningsattheendoftheyear
Asat31December2025,theconsolidatedretainedearningsattributabletotheCompanyincludedanappropriationofRMB73,306,833(2024:RMB64,459,076)tosurplusreservemadebythesubsidiaries.37Operatingincomeandoperatingcosts
| Item | 2025 | 2024 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 2,914,372,110 | 1,300,520,369 | 3,196,761,585 | 1,360,000,070 |
| Otheroperatingactivities | 74,295,412 | 29,304,632 | 80,516,762 | 32,602,329 |
| Total | 2,988,667,522 | 1,329,825,001 | 3,277,278,347 | 1,392,602,399 |
| Including:Revenuefromcontractswithcustomers | 2,982,029,491 | 1,325,520,521 | 3,271,223,512 | 1,387,836,538 |
| Rentincome | 6,638,031 | 4,304,480 | 6,054,835 | 4,765,861 |
(1)Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2025 | 2024 |
| Bytypeofgoodsorservices | ||
| -Liquor | 2,914,372,110 | 3,196,761,585 |
| -Others | 67,657,381 | 74,461,927 |
| Bytimingoftransferringgoodsorservices | ? | ? |
| -Revenuerecognisedatapointintime | 2,982,029,491 | 3,271,223,512 |
(2)Geographicalregionsofoperatingincomeandoperatingcosts：
| Typeofcontract | 2025 | 2024 | ||
| Income | Cost | Income | Cost | |
| Bygeographicalregions | ||||
-China
| -China | 2,370,215,804 | 962,299,411 | 2,685,914,511 | 1,031,980,984 |
| -Othercountriesandregions | 618,451,718 | 367,525,590 | 591,363,836 | 360,621,415 |
| Total | 2,988,667,522 | 1,329,825,001 | 3,277,278,347 | 1,392,602,399 |
38Taxesandsurcharges
| Item | 2025 | 2024 |
| Consumptiontax | 172,905,966 | 185,547,704 |
| Urbanmaintenanceandconstructiontax | 22,947,535 | 23,268,173 |
| Educationsurcharges | 15,787,621 | 16,775,249 |
| Propertytax | 34,748,272 | 33,918,780 |
| Taxontheuseofurbanland | 10,030,712 | 9,869,535 |
| Stampduty | 3,489,633 | 4,022,461 |
| Others | 1,159,661 | 360,727 |
| Total | 261,069,400 | 273,762,629 |
39Sellinganddistributionexpenses
| Item | 2025 | 2024 |
| Marketingfee | 299,546,194 | 322,040,390 |
| Salariesandbenefits | 277,687,005 | 294,724,158 |
| Labourservicefee | 92,140,010 | 86,440,275 |
| Advertisingfee | 47,593,280 | 63,037,709 |
| Depreciationexpense | 48,682,432 | 51,846,831 |
| Designandproductionfee | 13,096,115 | 19,561,846 |
| Travellingexpenses | 29,772,083 | 29,989,425 |
| Trademarksexpenses | 16,266,578 | 17,770,743 |
| Storagerental | 23,496,831 | 25,233,942 |
| Conferencefee | 12,364,580 | 16,578,022 |
| Water,electricityandgasfee | 12,753,684 | 12,987,461 |
| Others | 72,929,769 | 72,769,618 |
| Total | 946,328,561 | 1,012,980,420 |
40Generalandadministrativeexpenses
| Item | 2025 | 2024 |
| Salariesandbenefits | 88,580,459 | 96,337,276 |
| Depreciationexpenses | 96,644,282 | 99,816,234 |
| Repaircosts | 11,826,773 | 12,001,516 |
| Administrativeexpenses | 22,168,941 | 19,512,898 |
| Amortisationofgreeningfee | 17,123,717 | 17,550,658 |
| Amortisationexpenses | 15,889,274 | 15,903,477 |
| Safetyproductioncosts | 8,632,180 | 9,793,378 |
| Securityandcleaningfee | 8,342,417 | 8,593,907 |
| Contractingfee | 4,108,056 | 3,913,648 |
| Others | 27,488,348 | 30,488,889 |
| Total | 300,804,447 | 313,911,881 |
41Financialexpenses
Item
| Item | 2025 | 2024 |
| Interestexpensesfromloansandpayables | 17,307,226 | 30,125,387 |
| Interestexpensesfromleaseliabilities | 790,677 | 4,136,343 |
| Interestincomefromdeposits | (19,698,919) | (34,643,667) |
| Exchange(gains)/losses | (14,911,624) | 10,911,603 |
| Otherfinancialexpenses | 1,165,694 | 2,306,407 |
| Total | (15,346,946) | 12,836,073 |
42Otherincome
| Item | 2025 | 2024 | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 4,100,000 | 4,100,000 | Governmentgrantsrelatedtoassets |
| XinjiangIndustrialRevitalizationandTechnologicalTransformationProject | 1,422,000 | 1,422,000 | Governmentgrantsrelatedtoassets |
| Wineproductioncapacityconstructionproject | - | 1,200,000 | Governmentgrantsrelatedtoassets |
| Subsidiesforretainingwall | 1,245,143 | 988,000 | Governmentgrantsrelatedtoassets |
| Others-Governmentgrantsrelatedtoassets | 363,397 | 396,617 | Governmentgrantsrelatedtoassets |
| Specialfundsforthedevelopmentofenterprises | 5,230,100 | 16,700,000 | Relatedtoincome |
| Taxrebates | 6,422,149 | 13,297,771 | Relatedtoincome |
| Regionalsalesincentivefund | 6,010,625 | 2,800,000 | Relatedtoincome |
| WineIndustryDevelopmentProject | 2,479,000 | 1,224,301 | Relatedtoincome |
| TechnologyresearchandindustrialsubsidiesforChina-producedoakwine-making | 1,221,345 | 1,361,300 | Relatedtoincome |
| TalentdevelopmentfundsfromShihezigovernment | 1,200,000 | 2,200,000 | Relatedtoincome |
| Fundsfortheintegrationdevelopmentprojectofagriculturalindustry | 284,100 | 536,000 | Relatedtoincome |
| Others-Governmentgrantsrelatedtoincome | 5,159,816 | 6,387,921 | Relatedtoincome |
| Total | 35,137,675 | 52,613,910 |
Otherincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
43Investmentlosses
Investmentlossesbyitems
Item
| Item | 2025 | 2024 |
| Long-termequityinvestmentlossesunderequitymethod | (1,975,116) | (4,420,872) |
| Investmentprofitarisingfromdisposalofsubsidiaries | 1,041,400 | - |
| Total | (933,716) | (4,420,872) |
44Credit(losses)/reversal
| Item | 2025 | 2024 |
| Accountsreceivable | (332,283) | 5,545,725 |
| Otherreceivable | (18,844,440) | (3,726,890) |
| Total | (19,176,723) | 1,818,835 |
45Impairmentlosses
| Item | 2025 | 2024 |
| Long-termequityinvestments | 6,233,435 | - |
| Inventories | 1,791,895 | 1,450,966 |
| Goodwill | - | 6,014,534 |
| Total | 8,025,330 | 7,465,500 |
46Gainsfromassetdisposals
| Item | 2025 | 2024 |
| Gainsfromassetdisposals | 307,134 | 132,116,926 |
Gainsfromdisposalofassetsduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.47Non-operatingincomeandnon-operatingexpenses
(1)Non-operatingincomebyitemisasfollows:
| Item | 2025 | 2024 |
| Insurancecompensation | 672,000 | 1,709,700 |
| Netincomefromfine | 3,029,197 | 1,501,900 |
| Others | 4,004,827 | 1,766,330 |
| Total | 7,706,024 | 4,977,930 |
Non-operatingincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
(2)Non-operatingexpenses
Item
| Item | 2025 | 2024 |
| Lossesfromdisposalofnon-currentassets | 283,885 | 1,868,546 |
| Donationsprovided | 714,905 | 1,416,240 |
| Compensation,penaltyandfineexpenses | 1,138,254 | 127,736 |
| Others | 817,092 | 320,552 |
| Total | 2,954,136 | 3,733,074 |
Non-operatingexpensesduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.48Incometaxexpenses
| Item | Note | 2025 | 2024 |
| Currenttaxexpensefortheyearbasedontaxlawandregulations | 76,177,873 | 115,078,031 | |
| Changesindeferredtaxassets/liabilities | (1) | 5,582,174 | (1,850,459) |
| Total | 81,760,047 | 113,227,572 |
(1)Theanalysisofchangesindeferredtaxissetoutbelow:
| Item | 2025 | 2024 |
| Originationoftemporarydifferences | 5,582,174 | (1,850,459) |
| Total | 5,582,174 | (1,850,459) |
(2)Reconciliationbetweenincometaxexpensesandaccountingprofit:
| Item | 2025 | 2024 |
| Profitbeforetaxation | 156,605,168 | 427,554,857 |
| Estimatedincometaxat25% | 39,151,292 | 106,888,714 |
| Effectofdifferenttaxratesappliedbysubsidiaries | 733,961 | 1,503,486 |
| Effectofnon-taxableincome | - | (25,961,339) |
| Effectofnon-deductiblecosts,expenseandlosses | 2,549,072 | 6,891,065 |
| Effectofusingdeductiblelossesforwhichnodeferredtaxassetwasrecognizedinpreviousperiods | (7,637,872) | (3,134,547) |
| Effectofdeductiblelossesofdeferredtaxassetsnotrecognisedfortheyear | 39,112,329 | 25,217,629 |
| Deferredtaxassetswritten-off | 7,851,265 | 1,822,564 |
| Incometaxexpenses | 81,760,047 | 113,227,572 |
49Basicearningspershareanddilutedearningspershare
(1)Basicearningspershare
BasicearningspershareiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
2025
| 2025 | 2024 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 71,291,303 | 305,210,999 |
| Weightedaveragenumberofordinarysharesoutstanding | 662,765,035 | 684,370,832 |
| Basicearningspershare(RMB/share) | 0.11 | 0.45 |
Weightedaveragenumberofordinarysharesiscalculatedasfollows:
| 2025 | 2024 | |
| Issuedordinarysharesatthebeginningoftheyear | 667,184,502 | 685,464,000 |
| Effectofrepurchasingshares | (4,419,467) | (1,666,666) |
| Effectsofunlockingofordinarysharessubjecttosalesrestrictions | - | 573,498 |
| Weightedaveragenumberofordinarysharesattheendoftheyear | 662,765,035 | 684,370,832 |
(2)Dilutedearningspershare
Dilutedearningspershareiscalculatedbydividingconsolidatednetprofit(diluted)attributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding(diluted):
| ? | Note | 2025 | 2024 |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany(Dilute) | (a) | 71,291,303 | 305,210,999 |
| Weightedaveragenumberofordinarysharesoutstanding(Dilute) | (b) | 662,765,035 | 684,370,832 |
| Dilutedearningspershare(RMB/share) | 0.11 | 0.45 |
(a)ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany(diluted)is
calculatedasfollows:
| 2025 | 2024 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 71,291,303 | 305,210,999 |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany(diluted) | 71,291,303 | 305,210,999 |
(b)TheweightedaveragenumberoftheCompany’sordinaryshares(diluted)iscalculated
asfollows:
?
| ? | 2025 | 2024 |
| Weightedaveragenumberofordinarysharesat31December | 662,765,035 | 684,370,832 |
| Weightedaveragenumberofordinaryshares(diluted)attheendoftheyear | 662,765,035 | 684,370,832 |
50Cashflowstatement
(1)Cashrelatingtooperatingactivities
a.Proceedsrelatingtootheroperatingactivities:
| Item | 2025 | 2024 |
| Governmentgrants | 28,585,790 | 45,969,993 |
| Interestincomefrombank | 17,529,757 | 29,707,469 |
| Penaltyincome | 3,029,197 | 1,501,900 |
| Others | 1,153,216 | 3,857,611 |
| Total | 50,297,960 | 81,036,973 |
b.Paymentsrelatingtootheroperatingactivities:
| Item | 2025 | 2024 |
| Sellinganddistributionexpenses | 416,258,276 | 512,511,750 |
| Generalandadministrativeexpenses | 99,690,432 | 105,557,429 |
| Others | 24,987,599 | 23,092,431 |
| Total | 540,936,307 | 641,161,610 |
(2)Cashrelatingtoinvestingactivities
a.Proceedsrelatingtosignificantinvestingactivities:
| Item | 2025 | 2024 |
| Recoveryoffixeddeposits | 93,200,000 | 464,200,000 |
| Disposalofsubsidiaries | 25,831,272 | - |
| Total | 119,031,272 | 464,200,000 |
b.Paymentsrelatingtosignificantinvestingactivities:
| Item | 2025 | 2024 |
| Investmentsinfixeddeposits | 60,200,000 | 288,650,000 |
| Acquisitionoffixedassetsandconstructioninprogress | 21,805,284 | 74,604,013 |
| Total | 82,005,284 | 363,254,013 |
(3)Cashrelatingtofinancingactivities
a.Proceedsrelatingtootherfinancingactivities:
Item
| Item | 2025 | 2024 |
| Repurchaseoftreasuryshares(NoteV.33) | 99,855,332 | 178,084,318 |
| Cancellationofrestrictedshares(NoteV.33) | 32,823,485 | 6,487,150 |
| Cashpaidforlease | 20,472,317 | 26,235,103 |
| Paymentforacquisitionofnon-controllinginterests | - | 16,506,915 |
| Total | 153,151,134 | 227,313,486 |
b.Changesinliabilitiesarisingfromfinancingactivities
| Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreasesduringtheyear | Balanceattheendoftheyear | |||
| Cash | Non-cash | Cash | Non-cash | |||
| Short-termloan | 216,140,346 | 461,506,851 | - | (433,053,481) | (3,918,928) | 240,674,788 |
| Long-termloan | 50,637,203 | 65,811,218 | - | - | (64,073,581) | 52,374,840 |
| Leaseliabilities | 27,542,829 | - | 3,581,426 | (1,684,125) | (10,002,300) | 19,437,830 |
| Non-currentliabilitiesduewithinoneyear | 79,949,769 | - | 74,061,432 | (78,570,291) | - | 75,440,910 |
| Otheraccountspayable-dividendspayable | - | - | 274,909,214 | (274,909,214) | - | - |
| Otheraccountspayable-interestpayable | - | - | 18,097,903 | (18,097,903) | - | - |
| Otheraccountspayable-payablesforrepurchaseoftreasuryshares | 70,704,426 | - | 99,855,332 | (132,678,817) | - | 37,880,941 |
| Total | 444,974,573 | 527,318,069 | 470,505,307 | (938,993,831) | (77,994,809) | 425,809,309 |
51Supplementaryinformationoncashflowstatement
(1)Supplementtocashflowstatement
a.Reconciliationofnetprofittocashflowsfromoperatingactivities:
Item
| Item | 2025 | 2024 |
| Netprofit | 74,845,121 | 314,327,285 |
| Add:Credit/assetimpairmentlosses | 27,202,053 | 5,646,665 |
| Depreciationoffixedassetsandinvestmentproperty | 312,046,003 | 302,028,852 |
| Amortisationofintangibleassets | 17,763,167 | 18,740,240 |
| Amortisationoflong-termdeferredexpenses | 22,177,502 | 21,658,422 |
| Amortisationofproductivebiologicalassets | 6,437,416 | 13,833,533 |
| DepreciationofROUassets | 18,280,962 | 20,744,479 |
| Profitsfromdisposaloffixedassets,intangibleassets,andotherlong-termassets | (307,134) | (132,116,926) |
| Financialexpenses | 15,325,664 | 32,778,256 |
| Equityincentivereversal | - | (4,016,467) |
| Investmentlosses | 933,716 | 4,420,872 |
| Decrease/(increase)indeferredtaxassets | 6,312,445 | (474,895) |
| Decreaseindeferredtaxliabilities | (730,271) | (1,375,564) |
| Decrease/(increase)ingrossinventories | 61,122,950 | (140,130,935) |
| (Increase)/decreaseinoperatingreceivables | (32,106,931) | 268,230,903 |
| (Decrease)inoperatingpayables | (173,479,204) | (326,553,653) |
| Netcashflowsfromoperatingactivities | 355,823,459 | 397,741,067 |
b.Significantinvestingandfinancingactivitiesnotrequiringtheuseofcash:
| Item | 2025 | 2024 |
| Paymentofconstructioninprogressandotherlong-termassetsbybankacceptances | 40,268,965 | 37,753,184 |
c.Changeincashandcashequivalents:
| Item | 2025 | 2024 |
| Cashequivalentsattheendoftheyear | 1,839,128,089 | 1,717,727,551 |
| Less:Cashequivalentsatthebeginningoftheyear | 1,717,727,551 | 1,963,155,752 |
| Netincrease/(decrease)incashandcashequivalents | 121,400,538 | (245,428,201) |
(2)Detailsofcashandcashequivalents
Item
| Item | 2025 | 2024 |
| Cashatbankandonhand | ||
| Including:Cashonhand | 18,877 | 27,228 |
| Bankdepositsavailableondemand | 1,839,109,212 | 1,717,700,323 |
| Closingbalanceofcashandcashequivalents | 1,839,128,089 | 1,717,727,551 |
52Assetswithrestrictiveownershiptitleorrightofuse
| Item | Openingbalance | Balanceattheendoftheyear | Reasonforrestriction |
| Cashatbankandonhand | 1,470,579 | 4,110,000 | TheCompanydepositsandEscrowaccountformigrantworkers'wagesetc. |
| Accountreceivable(i) | 35,917,860 | 73,330,179 | Short-termborrowingsmortgagefromAtrio |
| Fixedassets | 32,467,803 | 34,165,994 | Short-termborrowingsfromHacienda |
| Total | 69,856,242 | 111,606,173 |
(i)Asat31December2025,theamountofaccountsreceivablewithrestrictedownership
isEUR8,904,156,equivalentofRMB73,330,179hichreferstoaccountsreceivableAtrioconductedforfactoringfromBancodeSabadell,S.A.Etc.(31December2024:
EUR4,772,694,equivalentofRMB35,917,860).53Leases
(1)Asalessee
| Item | 2025 | 2024 |
| Short-termleaseexpensesforwhichthepracticalexpedienthasbeenapplied | 245,034 | 386,346 |
| Totalcashoutflowforleases | 21,124,354 | 26,621,449 |
TheGroupleasesbuildingsandmotorvehicleswiththeleasetermsof1yearorless,andalloftheseleasesareshort-termleases.TheGrouphaselectednottorecogniseright-of-useassetsandleaseliabilitiesfortheseleases.
(2)Asalessor
| Item | 2025 | 2024 |
| Leaseincome | 6,638,031 | 6,054,835 |
TheGroupleasedoutsomemachineriesin2023and2024withaleasetermwithin1
year.TheGrouphasclassifiedtheseleasesasoperatingleases,becausetheydonot
transfersubstantiallyalloftherisksandrewardsincidentaltotheownershipofthe
assets.
TheundiscountedleasereceiptstobereceivedbytheGroupafterthebalancesheetdateareasfollows:
Item
| Item | 2025 | 2024 |
| Within1year(inclusive) | 5,217,303 | 5,872,890 |
| Over1yearbutwithin2years(inclusive) | 5,195,284 | 5,872,890 |
| Over2yearsbutwithin3years(inclusive) | 1,376,147 | 5,850,872 |
| Over3yearsbutwithin4years(inclusive) | - | 1,941,507 |
| Total | 11,788,734 | 19,538,159 |
VI.Researchanddevelopmentexpenses
Presentationbynature
| Item | 2025 | 2024 |
| Salaries | 7,557,252 | 7,362,919 |
| Diagnostictestfees | 2,882,115 | 2,600,375 |
| Consultancyfee | 1,511,544 | 1,412,609 |
| Materialconsumption | 5,960,086 | 4,242,275 |
| Others | 3,531,822 | 3,920,065 |
| Total | 21,442,819 | 19,538,243 |
| Including:researchanddevelopmentexpendituresthatareexpensed | 21,442,819 | 19,538,243 |
VII.Changeofconsolidationscope1Disposalofsubsidiaries
Transactionsoreventsresultinginlossofcontroloversubsidiaries
Nameofenterprise
| Nameofenterprise | Dateoflosingcontrol | Considerationonthedateoflosingcontrol | Shareholdingbeingdisposedonthedateoflosingcontrol(%) | Disposalmethodonthedateoflosingcontrol | Basisfordeterminingdateoflosingcontrol | Differencebetweenconsiderationreceivedandtherelatedshareofnetassetsinconsolidatedfinancialstatements | Proportionofremainingshareholdingonthedateoflosingcontrol | Fairvalueofremainingequityinterestsonthedateoflosingcontrolinconsolidatedfinancialstatements |
| Roullet-Fransac | 26September2025 | EUR3,309,500 | 100% | Equitytransfer | Controltransfer | RMB1,041,400 | - | - |
TheGrouprecognisedagainofRMB1,041,400ondisposalofRoullet-Fransacresultinginlossofcontrol,whichhasbeenincludedininvestmentincomeoftheconsolidatedfinancialstatements.2Otherreasonsforchangeofconsolidationscope
TheGroupderegisteredandliquidateditssubsidiaryTianjinZhangyuYixinDigitalTechnologyCo.,Ltd.on20August2025.FollowingthecompletionoftheliquidationanddistributionoftheremainingassetsofYixinDigital,theGroup’smon-controllinginterestsdecreasedbyRMB6,834,267accordingly.
VIII.Interestsinotherentities1Interestsinsubsidiaries
(1)CompositionoftheGroup
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| HaciendayVi?edosMarquésdelAtrio,S.L(“Hacienda”) | Navarre,Spain | Navarre,Spain | Marketingandsales | EUR2,000,000 | 90 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| Vi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSpA..(“ChileIndomitaWineGroup”) | Santiago,Chile | Santiago,Chile | Marketingandsales | CLP31,100,000,000 | 85 | - | Acquiredthroughestablishmentorinvestment |
| KilikanoonEstatePtyLtd.(“AustraliaKilikanoonEstate”) | Adelaide,Australia | Adelaide,Australia | Marketingandsales | AUD6,420,000 | 99 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| BeijingChangyuSalesandDistributionCo.,Ltd.(“BeijingSales”) | Beijing,China | Beijing,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiKylinPackagingCo.,Ltd.(“KylinPackaging”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB15,410,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChateauChangyu-CastelCo.,Ltd.(“ChateauChangyu”)(a) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | USD5,000,000 | 70 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(Jingyang)WineCo.,Ltd.(“JingyangWine”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB1,000,000 | 90 | 10 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuPioneerWineSalesCo.,Ltd.(“SalesCompany”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB8,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuSalesandDistributionCo.,Ltd.(“ShanghaiSales”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineSalesCo.,Ltd.(“WinesSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 90 | 10 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuPioneerInternationalCo.,Ltd.(“PioneerInternational”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 70 | 30 | Acquiredthroughestablishmentorinvestment |
| HangzhouChangyuWineSalesCo.,Ltd.(“HangzhouChangyu”) | Hangzhou,Zhejiang,China | Hangzhou,Zhejiang,China | Marketingandsales | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| NingxiaChangyuGrapeGrowingCo.,Ltd.(“NingxiaGrowing”) | Yinchuan,Ningxia,China | Ningxia,China | Plating | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| HuanrenChangyuNationalWinesSalesCo.,Ltd.(“NationalWines”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Marketingandsales | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd.(“GoldenIcewineValley”) | Benxi,Liaoning,China | Benxi,Liaoning,China | Manufacturing | RMB64,687,300 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiDevelopmentZoneChangyuTradingCo.,Ltd.(“DevelopmentZoneTrading”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingAFIPMeetingCenter(“MeetingCenter”) | Miyun,Beijing,China | Miyun,Beijing,China | Services | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingAFIPTourismandCulture(“AFIPTourism”) | Miyun,Beijing,China | Miyun,Beijing,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| Changyu(Ningxia)WineCo.,Ltd.(“NingxiaWine”) | Ningxia,China | Ningxia,China | Manufacturing | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuChateauTinlotCo.,Ltd.(“ChateauTinlot”) | Yantai,Shandong,China | Yantai,Shandong,China | Wholesaleandretail | RMB400,000,000 | 65 | 35 | Acquiredthroughestablishmentorinvestment |
| XinjiangChateauChangyuBaronBalboaCo.,Ltd.(“ChateauShihezi”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | RMB550,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| NingxiaChateauChangyuMoserXVCo.,Ltd.(“ChateauNingxia”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Manufacturing | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShaanxiChateauChangyuChanggeCo.,Ltd.("ChateauChangge") | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB20,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB805,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| XinjiangChangyuSalesCo.,Ltd.(“XinjiangSales”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Marketingandsales | RMB10,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| NingxiaChangyuTradingCo.,Ltd.(“NingxiaTrading”) | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| ShaanxiChangyuRenaWineSalesCo.,Ltd.(“ShanxiSales”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Marketingandsales | RMB3,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| PenglaiChangyuWineSalesCo.,Ltd.(“PenglaiSales”) | Penglai,Shandong,China | Penglai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| LaizhouChangyuWineSalesCo.,Ltd.(“LaizhouSales”) | Laizhou,Shandong,China | Laizhou,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| FrancsChampsParticipationsSAS(“FrancsChamps”) | Cognac,France | Cognac,France | Investmentandtrading | EUR32,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| YantaiRoulletFransacWineSalesCo.,Ltd.(“YantaiRoulletFransac”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineSalesCo.,Ltd.(“WineSalesCompany”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| ShaanxiChateauChangyuRenaTourismCo.,Ltd.(“ChateauTourism”) | Xianxin,Shaanxi,China | Xianxin,Shaanxi,China | Tourism | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| LongkouChangyuWineSalesCo.,Ltd.(“LongkouSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuCulturalTourismDevelopmentCo.,Ltd.(“CultureDevelopment“) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| BeijingChangyuAFIPAgriculturedevelopmentCo.,Ltd.(“AgricultureDevelopment”) | Miyun,Beijing,China | Miyun,Beijing,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd.(“AFIP”)(b) | Beijing,China | Beijing,China | Manufacturing | RMB642,750,000 | 92 | - | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineCultureMuseumCo.,Ltd.(“Museum”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuCultureTourismProductionSalesCo.,Ltd.(“CultureSales”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuInternationalWindowoftheWineCityCo.,Ltd.(“WindowoftheWineCity”) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB60,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiKOYABrandyChateauCo.,Ltd.(“ChateauKOYA”) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(Shanghai)InternationalDigitalMarketingCenterLimited(“DigitalMarketing”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB50,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuGuoquDigitalTechnologyCo.,Ltd.(“ShanghaiGuoqu”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB6,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| ShanghaiChangyuYixinDigitalTechnologyCo.,Ltd.(“ShanghaiYixin”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB10,000,000 | - | 51 | Acquiredthroughestablishmentorinvestment |
| YantaiCreightonCateringCompanyLimited(“CreightonCatering”) | Yantai,Shandong,China | Yantai,Shandong,China | Services | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| Weimeisi(Shanghai)EnterpriseDevelopmentCo.,Ltd(“WeimeisiShanghai”) | Shanghai,China | Shanghai,China | Marketingandsales | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| NingxiaLongyuFoodTradingCo.,Ltd.("NingxiaLongyu") | Yinchuan,Ningxia,China | Yinchuan,Ningxia,China | Marketingandsales | RMB500,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| BeijingChangyuTradingCo.,Ltd.("BeijingTrading") | Miyun,Beijing,China | Miyun,Beijing,China | Marketingandsales | RMB500,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| HuanrenZhangyuWineEthnicLiquorSalesCo.,Ltd.(“HuanrenSales”) | Benxi,Liaoning.China | Benxi,Liaoning.China | Marketingandsales | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| ShanghaiZhangyuYixinYidaE-commerceCo.,Ltd.("ShanghaiYixinYida") | Hongkou,Shanghai,China | Hongkou,Shanghai,China | Services | RMB500,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
Reasonsfortheinconsistencybetweentheproportionofshareholdingsinasubsidiaryandtheproportionofvotingrights:
(a)ChateauChangyuisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,accountingfor70%ofChangyu
Chateau’sequityinterest.Throughagreementarrangement,theCompanyhasthefullpowertocontrolChangyuChateau’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementisterminatedon31December2027.(b)AFIPisalimitedliabilitycompanyestablishedbyYantaiDe'anInvestmentCo.,LtdandBeijingQinglangEcologicalAgriculturalTechnology
DevelopmentCo.,Ltd.Aftertheequitychange,theCompanyholds91.53%ofitsequity.Throughagreementarrangement,theCompanyhasthefullpowertocontrolAFIP’sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon2September2027.
(2)Materialnon-whollyownedsubsidiaries
| NameoftheSubsidiary | Proportionofownershipinterestheldbynon-controllinginterests | Comprehensiveincomeattributabletonon-controllinginterestsfortheyear | Dividenddeclaredtonon-controllingshareholdersduringtheyear | Balanceofnon-controllinginterestsattheendoftheyear |
| AFIP | 8.47% | - | - | 56,409,393 |
| IWCC | 15.00% | 1,986,915 | 883,855 | 57,789,439 |
(3)Keyfinancialinformationaboutmaterialnon-whollyownedsubsidiaries
Thefollowingtablesetsoutthekeyfinancialinformationoftheabovesubsidiarieswithoutoffsettinginternaltransactions,butwithadjustmentsmadeforthefairvalueadjustmentattheacquisitiondateandanydifferencesinaccountingpolicies:
AFIP
| AFIP | ChileIndomitaWineGroup | |||
| 2025 | 2024 | 2025 | 2024 | |
| Currentassets | 264,880,703 | 256,982,569 | 239,483,768 | 237,880,401 |
| Non-currentassets | 354,205,457 | 373,266,371 | 306,248,010 | 306,022,908 |
| Totalassets | 619,086,160 | 630,248,940 | 545,731,778 | 543,903,309 |
| Currentliabilities | 19,136,401 | 16,704,310 | 144,442,947 | 150,938,775 |
| Non-currentliabilities | 3,645,340 | 3,708,917 | 8,468,264 | 7,497,696 |
| Totalliabilities | 22,781,741 | 20,413,227 | 152,911,211 | 158,436,471 |
| Operatingincome | 67,106,362 | 81,045,348 | 227,567,761 | 222,156,497 |
| Net(loss)/profit | (13,659,294) | (8,859,147) | 7,780,198 | 11,847,093 |
| Totalcomprehensiveincome | (13,659,294) | (8,859,147) | 13,246,098 | 2,428,528 |
| Cashflowsfromoperatingactivities | 168,621 | 12,596,851 | 12,958,085 | 19,487,568 |
IX.Riskrelatedtofinancialinstruments
TheGrouphasexposuretothefollowingmainrisksfromitsuseoffinancialinstrumentsinthenormalcourseoftheGroup’soperations:
-Creditrisk-Liquidityrisk-Interestraterisk-ForeigncurrencyriskThefollowingmainlypresentsinformationabouttheGroup’sexposuretoeachoftheaboverisksandtheirsources,theirchangesduringtheyear,andtheGroup’sobjectives,policiesandprocessesformeasuringandmanagingrisks,andtheirchangesduringtheyear.TheGroupaimstoseekappropriatebalancebetweentherisksandbenefitsfromitsuseoffinancialinstrumentsandtomitigatetheadverseeffectsthattherisksoffinancialinstrumentshaveontheGroup’sfinancialperformance.Basedonsuchobjectives,theGroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.1Creditrisk
Creditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischargeanobligation.TheGroup’screditriskisprimarilyattributabletocashatbank,receivables,debtinvestmentsandderivativefinancialinstrumentsenteredintoforhedgingpurposes.Exposuretothesecreditrisksaremonitoredbymanagementonanongoingbasis.ThecashatbankoftheGroupismainlyheldwithwell-knownfinancialinstitutions.ManagementdoesnotforeseeanysignificantcreditrisksfromthesedepositsanddoesnotexpectthatthesefinancialinstitutionsmaydefaultandcauselossestotheGroup.
TheGroup'smaximumcreditriskexposureisthecarryingamountofeachfinancialasset(includingderivativefinancialinstruments)inthebalancesheet.Inordertominimisethecreditrisk,theGrouphasadoptedapolicytoensurethatallsalescustomershavegoodcreditrecords.AccordingtothepolicyoftheGroup,creditreviewisrequiredforclientswhorequirecredittransactions.Inaddition,theGroupcontinuouslymonitorsthebalanceofaccountreceivabletoensurethere’snoexposuretosignificantbaddebtrisks.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecificapprovaloftheDepartmentofCreditControlintheGroup.Inaddition,theGroupreviewstherecoverableamountofeachindividualtradedebtateachbalancesheetdatetoensurethatadequateimpairmentlossesaremadeforirrecoverableamounts.Inthisregard,themanagementoftheGroupconsidersthattheGroup’screditriskissignificantlyreduced.SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Concentrationsofcreditriskaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.Asat31December2025,37.5%oftheGrouptradereceivablesareduefromtopfivecustomers(31December2024:42.1%).ThereisnocollateralorothercreditenhancementonthebalanceofthetradereceivablesoftheGroup.2Liquidityrisk
Liquidityriskistheriskthatanenterprisewillencounterdifficultyinmeetingobligationsthataresettledbydeliveringcashoranotherfinancialasset.TheCompanyanditsindividualsubsidiariesareresponsiblefortheirowncashmanagement,includingshort-terminvestmentofcashsurplusesandtheraisingofloanstocoverexpectedcashdemands(subjecttoapprovalbytheCompany’sboardwhentheborrowingsexceedcertainpredeterminedlevels).TheGroup’spolicyistoregularlymonitoritsliquidityrequirementsanditscompliancewithlendingcovenants,toensurethatitmaintainssufficientreservesofcash,readilyrealisablemarketablesecuritiesandadequatecommittedlinesoffundingfrommajorfinancialinstitutionstomeetitsliquidityrequirementsintheshortandlongerterm.ThefollowingtablessetouttheremainingcontractualmaturitiesatthebalancesheetdateoftheGroup’sfinancialliabilities,whicharebasedoncontractualundiscountedcashflows(includinginterestpaymentscomputedusingcontractualratesor,iffloating,basedonratescurrentatthebalancesheetdate)andtheearliestdatetheGroupcanberequiredtopay:
Item
| Item | 2025Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 243,345,139 | - | - | - | 243,345,139 | 240,674,788 |
| Accountspayable | 321,932,168 | - | - | - | 321,932,168 | 321,932,168 |
| Otherpayables | 332,855,775 | - | - | - | 332,855,775 | 332,855,775 |
| Long-termloans(includingtheportionduewithinoneyear) | 68,651,364 | 26,399,241 | 28,552,669 | - | 123,603,274 | 117,827,899 |
| Leaseliability(includingtheportionduewithinoneyear) | 11,147,721 | 4,221,591 | 10,387,294 | 12,439,306 | 38,195,912 | 29,425,681 |
| Total | 977,932,167 | 30,620,832 | 38,939,963 | 12,439,306 | 1,059,932,268 | 1,042,716,311 |
Item
| Item | 2024Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 219,471,784 | - | - | - | 219,471,784 | 216,140,346 |
| Accountspayable | 417,510,439 | - | - | - | 417,510,439 | 417,510,439 |
| Otherpayables | 398,149,521 | - | - | - | 398,149,521 | 398,149,521 |
| Long-termloans(includingtheportionduewithinoneyear) | 34,442,156 | 21,327,296 | 66,175,216 | - | 121,944,668 | 111,798,781 |
| Leaseliability(includingtheportionduewithinoneyear) | 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 |
3Interestraterisk
Interest-bearingfinancialinstrumentsatvariableratesandatfixedratesexposetheGrouptocashflowinterestrateriskandfairvalueinterestrisk,respectively.TheGroupdeterminestheappropriateweightingsofthefixedandfloatingrateinterest-bearinginstrumentsbasedonthecurrentmarketconditionsandperformsregularreviewsandmonitoringtoachieveanappropriatemixoffixedandfloatingrateexposure.
(1)Asat31December,theGroupheldthefollowinginterest-bearingfinancialinstruments:
Fixedrateinstruments:
| Item | 2025 | 2024 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 1.30%-2.25% | 45,650,000 | 1.70%-2.25% | 78,650,000 |
| Financialliabilities | ? | ? | ? | ? |
| -Short-termloans | 5.34%-5.85% | (92,510,252) | 5.53%-5.94% | (97,958,247) |
| -Long-termloans(includingtheportionduewithinoneyear) | 2.80%-4.65% | (4,259,657) | 2.80%-4.65% | (6,342,368) |
| -Leaseliability(includingtheportionduewithinoneyear) | 4.65% | (29,425,681) | 4.65% | (46,331,020) |
| Total | ? | (80,545,590) | ? | (71,981,635) |
Variablerateinstruments:
| Item | 2025 | 2024 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 0.01%-0.55% | 1,843,219,212 | 0.20%-0.35% | 1,718,853,538 |
| Financialliabilities | ? | ? | ? | ? |
| -Short-termloans | 1YearLPR-0.89% | (50,000,000) | 1YearLPR-0.95% | (50,000,000) |
| -Short-termloans | BBSW+1.5% | (13,364,220) | BBSW+1.5% | (26,365,950) |
| -Short-termloans | 2.20%-3.90% | (84,800,316) | 3.41%-4.65% | (41,816,149) |
| -Long-termloans(includingtheportionduewithinoneyear) | 3.10%-5.83% | (113,568,242) | 3.41%-7.59% | (105,456,413) |
| Total | ? | 1,581,486,434 | ? | 1,495,215,026 |
(2)Sensitivityanalysis
ManagementoftheGroupbelievesinterestrateriskonbankdepositisnotsignificant,thereforedoesnotdisclosesensitivityanalysisforinterestraterisk.
Asat31December2025,basedonassumptionsabove,itisestimatedthatageneralincreaseof50basispointsininterestrates,withallothervariablesheldconstant,woulddecreasetheGroup’sequitybyRMB981,498(2024:RMB838,644),andnetprofitbyRMB981,498(2023:
RMB838,644).Thesensitivityanalysisaboveindicatestheinstantaneouschangeinthenetprofitandequitythatwouldariseassumingthatthechangeininterestrateshadoccurredatthebalancesheetdateandhadbeenappliedtore-measurethosefinancialinstrumentsheldbytheGroupwhichexposetheGrouptofairvalueinterestrateriskatthebalancesheetdate.Inrespectoftheexposuretocashflowinterestrateriskarisingfromfloatingratenon-derivativeinstrumentsheldbytheGroupatthebalancesheetdate,theimpactonthenetprofitandequityisestimatedasanannualisedimpactoninterestexpenseorincomeofsuchachangeininterestrates.4Foreigncurrencyrisk
Inrespectofcashatbankandonhand,accountsreceivableandpayable,short-termloansdenominatedinforeigncurrenciesotherthanthefunctionalcurrency,theGroupensuresthatitsnetexposureiskepttoanacceptablelevelbybuyingorsellingforeigncurrenciesatspotrateswhennecessarytoaddressshort-termimbalances.
(1)Asat31December,theGroup’sexposuretomaincurrencyriskarisingfromrecognised
assetsorliabilitiesdenominatedinforeigncurrenciesispresentedinthefollowingtables.Forpresentationpurposes,theamountsoftheexposureareshowninRenminbi,translatedusingthespotrateatthebalancesheetdate.Differencesresultingfromthetranslationofthefinancialstatementsdenominatedinforeigncurrencyareexcluded.
2025
| 2025 | 2024 | |||
| Balanceatforeigncurrency | BalanceatRMBequivalent | Balanceatforeigncurrency | BalanceatRMBequivalent | |
| Cashatbankandonhand | ||||
| -USD | 832,131 | 5,848,885 | 906,574 | 6,516,817 |
| -EUR | 41,398 | 340,929 | 62,611 | 471,195 |
| -HKD | 2 | 1 | 2 | 1 |
| Short-termloans | ? | ? | ? | ? |
| -USD | 13,125,000 | 92,510,252 | 13,375,000 | 97,958,247 |
(2)ThefollowingaretheexchangeratesforRenminbiagainstforeigncurrenciesappliedbythe
Group:
| Averagerate | Balancesheetdatemid-spotrate | |||
| 2025 | 2024 | 2025 | 2024 | |
| USD | 7.1429 | 7.1217 | 7.0288 | 7.1884 |
| EUR | 8.0965 | 7.7248 | 8.2355 | 7.5257 |
| HKD | 0.9162 | 0.9127 | 0.9032 | 0.9260 |
(3)Sensitivityanalysis
Assumingallotherriskvariablesremainedconstant,a5%strengtheningoftheRenminbiagainsttheUSdollar,EurodollarandHKdollarat31DecemberwouldhaveimpactontheGroup’sequityandnetprofitbytheamountshownbelow.whoseeffectisinRenminbiandtranslatedusingthespotrateattheyear-enddate:
Equity
| Equity | Netprofit | |
| 31December2025 | ||
| USD | 3,253,771 | 3,253,771 |
| EUR | (12,543) | (12,543) |
| Total | 3,241,228 | 3,241,228 |
| 31December2024 | ||
| USD | 3,433,649 | 3,433,649 |
| EUR | (17,200) | (17,200) |
| Total | 3,416,449 | 3,416,449 |
A5%weakeningoftheRenminbiagainsttheUSdollar,EurodollarandHKdollarat31Decemberwouldhavehadtheequalbutoppositeeffecttotheamountsshownabove,onthebasisthatallothervariablesremainedconstant.X.Fairvaluedisclosure
AllfinancialassetsandfinancialliabilitiesheldbytheGrouparecarriedatamountsnotmateriallydifferentfromtheirfairvalueat31December2025and31December2024.
XI.Relatedpartiesandrelatedpartytransactions1InformationabouttheparentoftheCompany
Companyname
| Companyname | Registeredplace | Businessnature | Registeredcapital | Shareholdingpercentage(%) | Percentageofvotingrights(%) | UltimatecontrollingpartyoftheCompany |
| ChangyuGroup | Yantai | Manufacturing | 50,000,000 | 52.6% | 52.6% | JointlycontrolledbyYantaiGuoFengInvestmentHoldingLtd,ILLVASARONNOHOLDINGSPA,InternationalFinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited. |
Theregisteredcapitaloftheparentcompanydidnotchangein2025,whiletheparentcompany’sshareholdingpercentageandproportionofvotingrightschangedfrom51.4%to52.6%.
2InformationaboutthesubsidiariesoftheCompany
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVIII.1.3Informationonotherrelatedparties
Nameofotherrelatedparties
| Nameofotherrelatedparties | Relatedpartyrelationship |
| YantaiShenmaPackagingCo.,Ltd.(“ShenmaPackaging”) | Controlledbythesameparentcompany |
| YantaiZhongyaZhibaoPharmaceuticalCo.,Ltd.(“ZhongyaZhibao”) | InformationontheGroup’sdirectors,supervisorsandtheseniormanagement |
| ShanghaiYufengBrandManagementCo.,Ltd.("ShanghaiYufeng”) | AssociateoftheGroup |
| TaizhouChangyuWineryWineSalesCo.,Ltd.("TaizhouChangyu”) | AssociateoftheGroup |
| YantaiGuolongWineIndustryCo.,Ltd(“YantaiGuolong”) | AssociateoftheGroup |
| SocieteCivileArgricoleDuChateauDeMirefleurs(“Mirefleurs”) | Subsidiariesofthejointventure |
| ChateauDeLiversan(“Liversan”) | Subsidiariesofthejointventure |
| YantaiChangyuWineCultureMuseum("Museum") | Nonprofitorganizationsassociatedwiththecompany |
4Transactionswithrelatedparties
(1)Productprocurement
| Relatedparties | Natureoftransaction | 2025 | 2024 |
| ShenmaPackaging | Productprocurement | 55,481,477 | 67,118,462 |
| ZhongyaZhibao | Productprocurement | 46,437 | 63,910 |
| Mirefleurs | Productprocurement | 9,702,697 | 5,940,476 |
| Liversan | Productprocurement | 8,216,340 | 2,997,312 |
| Total | 73,446,951 | 76,120,160 |
(2)Salesofgoods
| Relatedparties | Natureoftransaction | 2025 | 2024 |
| ZhongyaZhibao | Salesofgoods | 5,458,840 | 4,977,296 |
| ShanghaiYufeng | Salesofgoods | 2,472,563 | 1,747,006 |
| ShenmaPackaging | Salesofgoods | 120,679 | 119,317 |
| YantaiGuolong | Salesofgoods | - | 13,221,519 |
| TaizhouChangyu | Salesofgoods | 6,252,913 | 4,329,478 |
| Total | 14,304,995 | 24,394,616 |
(3)Purchaseoffixedassets
RelatedpartiesoftheCompany
| RelatedpartiesoftheCompany | Natureoftransaction | 2025 | 2024 |
| ShenmaPackaging | Purchaseoffixedassets | 670,556 | 219,821 |
| Total | 670,556 | 219,821 |
(4)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2025 | Leaseincomerecognisedin2024 |
| ShenmaPackaging | Officesandplants | 1,492,550 | 1,549,410 |
| ZhongyaZhibao | Officesandplants | 928,440 | 963,810 |
| Museum | Offices | 1,146,789 | 382,110 |
| Total | 3,567,779 | 2,895,330 |
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2025 | Leaseexpenserecognisedin2024 |
| ChangyuGroup | Officebuildings | 1,479,663 | 1,548,899 |
| ChangyuGroup | Officesandplants | 1,338,387 | 1,396,340 |
| ChangyuGroup | Officesandplants | 4,015,162 | 4,189,020 |
| ChangyuGroup | Officesandcommercialbuilding | 6,172,168 | 6,484,558 |
| Total | 13,005,380 | 13,618,817 |
(5)Remunerationofkeymanagementpersonnel
| Item | 2025 | 2024 |
| Remunerationofkeymanagementpersonnel | 7,054,185 | 10,298,399 |
(6)Otherrelatedpartytransactions
| Relatedparties | Natureoftransaction | 2025 | 2024 |
| ChangyuGroup | Trademarks | 16,266,578 | 17,770,743 |
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theGroupmayusecertaintrademarksofChangyuGroup,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup’sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGrouppaysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon0.98%ofthesalesvolumeoftheGroup‘scontractproductsusingthistrademark.Thearticle6.3isamendedto:TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.TheGroupincurredatrademarkusagefeeofRMB16,266,578thisyear.
5Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
Item
| Item | Relatedparty | 2025 | 2024 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivable | ZhongyaZhibao | -? | -? | 1,041,839 | 1,126 |
| Accountsreceivable | Museum | -? | -? | 416,500 | 450 |
| Prepayments | Mirefleurs | -? | -? | 5,346,651 | -? |
| Prepayments | ShenmaPackaging | -? | -? | 112,579 | -? |
Payablestorelatedparties
| Item | Relatedparty | 2025 | 2024 |
| Accountspayable | ShenmaPackaging | 25,095,928 | 20,649,261 |
| Accountspayable | ZhongyaZhibao | 1,572,709 | 1,133,362 |
| Accountspayable | ShanghaiYufeng | 61,365 | 7,318 |
| Accountspayable | Mirefleurs | 744,426 | - |
| Contractliabilities | TaizhouChangyu | - | 5,927,230 |
| Contractliabilities | YantaiGuolong | 51,696 | 51,696 |
| Contractliabilities | ShenmaPackaging | 11,835 | 11,835 |
| Contractliabilities | ChangyuGroup | 41,964 | - |
| Otherpayables | ChangyuGroup | 17,082,233 | 18,630,742 |
| Otherpayables | ShenmaPackaging | 400,000 | 400,000 |
| Otherpayables | YantaiGuolong | 50,000 | 50,000 |
XII.Capitalmanagement
TheGroup’sprimaryobjectiveswhenmanagingcapitalaretosafeguarditsabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsforshareholders,bypricingproductsandservicescommensuratelywiththelevelofriskandbysecuringaccesstofinanceatareasonablecost.TheGroup’scapitalstructureisregularlyreviewedandmanagedtoachieveanoptimalstructureandreturnforshareholders.FactorsfortheGroup’sconsiderationinclude:itsfuturefundingrequirements,capitalefficiency,actualandexpectedprofitability,expectedcashflows,andexpectedcapitalexpenditure.AdjustmentsaremadetothecapitalstructureinlightofchangesineconomicconditionsaffectingtheGroup.NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.
XIII.Share-basedpayments
1Equityinstruments
(1)Shareoptionsorotherequityinstrumentsoutstandingattheendoftheyear
Typeofgrantees
| Typeofgrantees | Grantedduringtheyear | Exercisedduringtheyear | Unlockedduringtheyear | Forfeitedduringtheyear | ||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
| Somedirectors,theseniormanagement,themiddlemanagementandcoretechnical(operational)cadre | - | - | - | - | - | - | 2,153,772 | 32,823,485 |
(2)Equity-settledshare-basedpayments
PursuanttotheProposalontheCompany’s2023RestrictedShareIncentivePlan(Draft)andRelevantSummaryandtheProposalontheRequestfortheAuthorisationtotheBoardofDirectorsbytheGeneralMeetingsofShareholderstoHandleMattersrelatedtotheCompany’s2023RestrictedShareIncentivePlanpassedbyresolutionsintheGroup’s2022GeneralMeetingsofShareholdersheldon26May2023aswellastheProposalontheAdjustmentstoMattersrelatedto2023RestrictedShareIncentivePlanandtheProposalontheGrantingofRestrictedSharestoIncentiveObjectsunderthe2023RestrictedShareIncentivePlanreviewedandpassedinthe2023firstextraordinaryBoardmeetingheldon26June2023,theGroupdeterminedtogrant6,850,000restrictedsharesto204incentiveobjectsatagrantpriceofRMB15.24pershareon26June2023(thegrantdate).Atotalof203incentiveobjectsoftheGroupactuallysubscribedfor6,785,559restrictedsharesatagrantpriceofRMB15.24pershare.ThetransactionincreasedtheCompany’sregisteredcapitalbyRMB6,785,559,increasedthecapitalreservebyRMB96,626,360.Allrestrictedsharesgrantedtoincentiveobjectsaresubjecttodifferentrestrictedsalesperiods,whicharerespectively12months,24monthsand36monthsfromthedateofcompletionofthegrantregistrationoftherestrictedsharesgrantedtotheincentiveobjects.TherestrictedsharesgrantedtotheincentiveobjectsundertheRestrictedShareIncentivePlanshallnotbetransferred,pledgedascollateralortorepaydebtsduringtherestrictedsalesperiods.Allrestrictedsharesgrantedtoincentiveobjectswillbeunlockedinthreephasesafter12monthsfromthegrantdate,withtheproportionofunlockingineachphasebeing30%,30%and40%,respectively,correspondingtounlockingdatesofoneyear,twoyearsandthreeyearsfromthegrantdate.Theactualunlockedsharesshallbelinkedtotheperformanceappraisalforeachyear.WhentheCompany’sperformancemeetsthecorrespondingcriteria,theunlockingproportionoftheabove-mentionedrestrictedsharesisdeterminedbasedonthebusinessperformanceoftheincentiveobject’soperationandthecontributionvalueoftheincentiveobject.TheCompanywillrepurchasethelockedrestrictedsharesatthegrantedpriceoftheincentiveobjectsiftheunlockedcriteriastipulatedinthisplanarenotmet,andtheincentiveobjectshallnotunlocktherestrictedsharesforthecurrentperiod.
TheGroupconvenedtheSecondMeetingoftheRemunerationCommitteeoftheBoardofDirectorsfor2024,theFourthExtraordinaryBoardMeetingfor2024andtheSecondExtraordinarySupervisoryCommitteeMeetingfor2024on22July2024,atwhichtheProposalonSatisfactionoftheReleaseofLock-upSharesGrantedundertheCompany’s2023RestrictedShareIncentivePlanintheFirstUnlockingPeriodandtheProposalontheRepurchaseandCancellationofCertainRestrictedSharesGrantedundertheCompany’s2023RestrictedShareIncentivePlanandAdjustmentofRepurchasePricewerereviewedandapproved.TheProposalontheRepurchaseandCancellationofCertainRestrictedSharesGrantedundertheCompany’s2023RestrictedShareIncentivePlanandAdjustmentofRepurchasePricewasreviewedandapprovedaccordingtotheresolutionoftheThirdExtraordinaryGeneralMeetingon8August2024.172incentiveparticipantsheldthefirsttrancheofrestrictedshareseligibleforunlockingin2024,andthetotalnumberofrestrictedsharesunlockedwas1,720,495.Theseunlockedshareswerelistedandtradedon6August2024.ThetransactionresultedinadecreaseofRMB26,220,343intreasuryshares.SomeincentiveparticipantsnolongermettheconditionsoftheCompany’s2023RestrictedShareIncentivePlanastheyhavelefttheCompanyduetoindividualreasonsorgotjobtransfer,and157,790restrictedsharesthathavebeengrantedtothembutnotyetunlockedwererepurchasedandcancelled.267,876restrictedsharesthatcannotbeunlockedduringthefirstunlockingperiodduetopersonalperformanceappraisalresultswererepurchasedandcancelled.Thenumberofrestrictedsharesthathavebeenrepurchasedandcancelledwere425,666intotal.ThetransactionresultedinadecreaseofRMB425,666intheGroup’ssharecapital,adecreaseofRMB6,061,484incapitalreserve,andadecreaseofRMB6,487,150intreasuryshares.On25July2025,theGroupconvenedits3rdmeetingoftheCompensationCommittee,the2ndmeetingofthe10thBoardofDirectors,andthe1stmeetingofthe9thBoardofSupervisorsfor2025.Duringthesemeetings,thefollowingproposalsweredeliberatedandapproved,theProposalontheFailuretoMeettheUnlockingConditionsfortheSecondUnlockingPeriodundertheCompany’s2023RestrictedShareIncentivePlan,andtheProposalontheRepurchase,Cancellation,andPriceAdjustmentofCertainRestrictedSharesundertheCompany’s2023RestrictedShareIncentivePlan.On12August2025,theGrouphelditsfirstextraordinarygeneralmeetingfor2025,duringwhichtheProposalontheRepurchase,Cancellation,andPriceAdjustmentofCertainRestrictedSharesundertheCompany’s2023RestrictedShareIncentivePlanwasdeliberatedandapproved.TheGrouprepurchasedandcancelled289,467restrictedsharesthathadbeengrantedbutnotyetunlockedduetodepartureofincentiverecipientsorchangesintheirrolesthatrenderedthemnolongerineligiblefortheCompany’s2023RestrictedShareIncentivePlan.TheGroupalsorepurchasedandcancelled1,864,305restrictedsharesthatfailedtounlockasrecipientsfailedtomeetindividualperformancetargetsduringthesecondunlockingperiod.Consequently,atotalof2,153,772restrictedsharedwererepurchasedandcancelled.TheaforementionedrepurchaseandcancellationresultedinadecreaseofRMB2,153,772intheGroup’ssharecapital,adecreaseofRMB30,669,713incapitalreservein2025Asat31December2025,theaccumulatedamountofequity-settledshare-basedpaymentsrecognisedinthecapitalreserveamountedtoRMB26,719,287.
XIV.Commitmentsandcontingencies1Significantcommitment
Capitalcommitments
Item
| Item | 2025 | 2024 |
| Long-termassetsacquisitioncommitment | 24,302,000 | 41,228,000? |
| Total | 24,302,000 | 41,228,000? |
2Contingencies
TheGroupdonothaveanysignificantcontingenciesasatbalancesheetdate.XV.Subsequentevents1Distributionofdividendsonordinarysharesapprovedafterthebalancesheetdate
AccordingtotheproposaloftheBoardofDirectorson16April2026,theCompanyintends
todistributecashdividendtotalingRMB164,310,032toallshareholdersof657,240,128
capitalsharesfortheyearended31December2025onthebasisofRMB2.5(includingtax)
forevery10shares.TheproposalissubjecttotheapprovalbytheShareholders’meeting.
Thisdistributionofprofitincashhasnotbeenrecognisedasaliabilityatthebalancesheet
date.XVI.Othersignificantitems1Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparkling
wineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup’sinternal
organisationstructure,managementrequirementsandinternalreportingsystem,theGroup’s
operationisdividedintofiveparts:China,Spain,France,ChileandAustralia.The
managementperiodicallyevaluatessegmentresults,inordertoallocateresourcesand
evaluateperformances.In2025,over79%ofrevenue,morethan83%ofprofitandover
91%ofnon-currentassetsderivedfromChina/arelocatedinChina.Therefore,theGroup
doesnotneedtodiscloseadditionalsegmentreportinformation.
XVII.NotestotheCompany’sfinancialstatements1Receivablesunderfinancing
Item
| Item | Note | 2025 | 2024 |
| Billsreceivable | (1) | 49,858,915 | 13,110,297 |
| Total | 49,858,915 | 13,110,297 |
(1)ThepledgedbillsreceivableoftheCompanyattheendoftheyear
Asat31December2025,therewasnopledgedbillsreceivable(31December2024:Nil).
(2)Outstandingderecognisedendorsedbillsthathavenotmaturedattheendoftheyear
| Item | Amountrecognisedatyearend |
| Bankacceptancebills | 72,512,409 |
| Total | 72,512,409 |
Asat31December2025,derecognisedbillsendorsedbytheCompanytootherpartieswhicharenotyetdueattheendoftheperiodisRMB72,512,409(31December2024:RMB60,323,326).Thenotesareusedforpaymenttosuppliers.TheCompanybelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theCompanywouldundertakelimitedliabilityforthenotes.2Otherreceivables
| Note | 31December2025 | 31December2024 | |
| Dividendsreceivable | (1) | 20,000,000 | 130,000,000 |
| Others | (2) | 686,617,690 | 822,762,563 |
| Total | 706,617,690 | 952,762,563 |
(1)Dividendsreceivable
| Item | 31December2025 | 31December2024 |
| Dividendstosubsidiaries | 20,000,000 | 130,000,000 |
| Total | 20,000,000 | 130,000,000? |
(2)Others
(a)Othersbycustomertype:
Customertype
| Customertype | 31December2025 | 31December2024 |
| Amountsduefromsubsidiaries | 606,611,486 | 615,371,507 |
| Amountsduefromrelatedparties | 88,172,813 | 207,391,056 |
| Sub-total | 694,784,299 | 822,762,563 |
| Less:Provisionforbadanddoubtfuldebts | (8,166,609) | -? |
| Total | 686,617,690 | 822,762,563 |
(b)Theageinganalysisisasfollows:
| Ageing | 2025 | 2024 |
| Within1year(inclusive) | 417,489,585 | 822,658,091 |
| Over1yearbutwithin2years(inclusive) | 277,192,978 | -? |
| Over2yearsbutwithin3years(inclusive) | - | -? |
| Over3years | 101,736 | 104,472 |
| Sub-total | 694,784,299 | 822,762,563 |
| Less:Provisionforbadanddoubtfuldebts | (8,166,609) | - |
| Total | 686,617,690 | 822,762,563 |
Theageingiscountedstartingfromthedate.(c)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2025,OtherprovisionforbadanddoubtfuldebtsamountedtoRMB
8,166,609(31December2024:Nil).
Asat31December2025,theCompanyhasnootherreceivableswrittenoff(31
December2024:Nil).(d)Otherscategorisedbynature
| Natureofotherreceivables | 2025 | 2024 |
| Amountsduefromsubsidiaries | 606,611,486 | 615,371,507 |
| Compensationreceivableforthedisposalofavineyard | 81,666,088 | 200,666,088 |
| Others | 6,506,725 | 6,724,968 |
| Sub-total | 694,784,299 | 822,762,563 |
| Less:Provisionforbadanddoubtfuldebts | (8,166,609) | -? |
| Total | 686,617,690 | 822,762,563 |
(e)Fivelargestothers-bydebtorattheendoftheyear
Debtor
| Debtor | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| Hacienda | Amountsduefromsubsidiaries | 142,100,399 | Within1yearand1-2years | 20.5% | - |
| SalesCompany | Amountsduefromsubsidiaries | 63,279,604 | Within1year | 9.1% | - |
| CompanyI | Compensationreceivableforthedisposalofavineyard | 81,666,088 | 1-2years | 11.8% | 8,166,609 |
| KilikanoonAustralia | Amountsduefromsubsidiaries | 53,098,070 | Within1yearand1-2years | 7.6% | - |
| ChateauChangge | Amountsduefromsubsidiaries | 30,947,513 | Within1year | 4.5% | - |
| Total | 371,091,674 | 53.5% | 8,166,609 |
3Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
| Item | 2025 | 2024 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| Investmentsinsubsidiaries | 7,737,521,508 | (97,669,546) | 7,639,851,962 | 7,737,521,508 | (48,288,589) | 7,689,232,919 |
| Total | 7,737,521,508 | (97,669,546) | 7,639,851,962 | 7,737,521,508 | (48,288,589) | 7,689,232,919 |
(2)Investmentsinsubsidiaries:
Subsidiary
| Subsidiary | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Balanceattheendoftheyear | Balanceofprovisionforimpairmentattheendoftheyear |
| KylinPackaging | 23,553,931 | - | - | 23,553,931 | - |
| ChateauChangyu | 29,281,772 | - | - | 29,281,772 | - |
| PioneerInternational | 4,464,714 | - | - | 4,464,714 | - |
| NingxiaGrowing | 36,573,247 | - | - | 36,573,247 | - |
| NationalWines | 2,000,000 | - | - | 2,000,000 | - |
| GoldenIcewineValley | 85,638,472 | - | - | 85,638,472 | - |
| ChateauBeijing | 588,648,215 | - | - | 588,648,215 | - |
| SalesCompany | 18,952,112 | - | - | 18,952,112 | - |
| WineSales | 5,109,166 | - | - | 5,109,166 | - |
| ShanghaiMarketing | 1,000,000 | - | - | 1,000,000 | - |
| BeijingSales | 850,000 | - | - | 850,000 | - |
| JingyangWine | 900,000 | - | - | 900,000 | - |
| NingxiaWine | 222,309,388 | - | - | 222,309,388 | - |
| ChateauNingxia | 453,760,284 | - | - | 453,760,284 | - |
| ChateauTinlot | 212,039,586 | - | - | 212,039,586 | - |
| ChateauShihezi | 812,311,899 | - | - | 812,311,899 | - |
| ChateauChangan | 804,205,930 | - | - | 804,205,930 | 49,380,957 |
| R&DCentre | 3,290,268,550 | - | - | 3,290,268,550 | - |
| WineSalesCompany | 5,105,130 | - | - | 5,105,130 | - |
| FrancsChamps | 236,025,404 | - | - | 236,025,404 | - |
| Hacienda | 233,142,269 | - | - | 233,142,269 | 11,225,459 |
| ChileIndomitaWineGroup | 274,248,114 | - | - | 274,248,114 | - |
| AustraliaKilikanoonEstate | 131,159,177 | - | - | 131,159,177 | 37,063,130 |
| DigitalMarketing | 50,191,439 | - | - | 50,191,439 | - |
| ChateauKoya | 110,337,503 | - | - | 110,337,503 | - |
| ShanghaiWeimeisi | 7,910,985 | - | - | 7,910,985 | - |
| CultureDevelopment | 92,649,560 | - | - | 92,649,560 | - |
| DevelopmentZoneTrading | 837,605 | - | - | 837,605 | - |
| Penglaisales | 831,612 | - | - | 831,612 | - |
| Longkousales | 1,611,286 | - | - | 1,611,286 | - |
| Laizhousales | 87,342 | - | - | 87,342 | - |
| YantaiRoulletFransac | 251,196 | - | - | 251,196 | - |
| Museum | 265,162 | - | - | 265,162 | - |
| WindowoftheWineCity | 470,134 | - | - | 470,134 | - |
| AFIPTourism | 162,952 | - | - | 162,952 | - |
| MeetingCenter | 102,210 | - | - | 102,210 | - |
| NingxiaTrading | 162,952 | - | - | 162,952 | - |
| CreightonCatering | 102,210 | - | - | 102,210 | - |
| Total | 7,737,521,508 | - | - | 7,737,521,508 | 97,669,546 |
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVIII.
4Operatingincomeandoperatingcosts
Item
| Item | 2025 | 2024 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 479,686,072 | 418,859,723 | 557,517,562 | 494,323,439 |
| Otheroperatingactivities | 5,327,691 | 2,778,616 | 4,561,209 | 2,555,898 |
| Total | 485,013,763 | 421,638,339 | 562,078,771 | 496,879,337 |
| Including:Revenuefromcontractswithcustomers | 479,686,072 | 418,859,723 | 557,517,562 | 494,323,439 |
| Rentincome | 5,327,691 | 2,778,616 | 4,561,209 | 2,555,898 |
Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2025 | 2024 |
| Bytypeofgoodsorservices | ||
| -Liquor | 479,686,072 | 557,517,562 |
| Bytimingoftransferringgoodsorservices | ? | ? |
| -Revenuerecognisedatapointintime | 479,686,072 | 557,517,562 |
5Investmentincome
| Item | 2025 | 2024 |
| Incomefromlong-termequityinvestmentsaccountedforusingcostmethod | 314,258,098 | 368,167,007 |
| Total | 314,258,098 | 368,167,007 |
6Transactionswithrelatedparties
(1)Productprocurement
| Relatedparties | Natureoftransaction | 2025 | 2024 |
| Subsidiaryoftheparentcompany | Productprocurement | 170,332,744 | 214,788,248 |
| OtherrelatedpartiesoftheCompany | Productprocurement | 25,068,903 | 36,256,009 |
| Total | 195,401,647 | 251,044,257 |
(2)Salesofgoods
Relatedparties
| Relatedparties | Natureoftransaction | 2025 | 2024 |
| Subsidiaryoftheparentcompany | Salesofgoods | 515,192,619 | 590,568,772 |
| OtherrelatedpartiesoftheCompany | Salesofgoods | 3,654,837 | 3,626,159 |
| Total | 518,847,456 | 594,194,931 |
(3)Guarantee
TheCompanyastheguarantor
| Guaranteeholder | Currency | Amountofguarantee | Inceptiondateofguarantee | Maturitydateofguarantee | Guaranteeexpired(Y/N) |
| AustraliaKilikanoonEstate | AUD | 5,850,000 | 1September2023 | 2March2026 | N |
(4)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2025 | Leaseincomerecognisedin2024 |
| OtherrelatedpartiesoftheCompany | Officesandplants | 2,420,990 | 2,513,220 |
| Subsidiaryoftheparentcompany | Officesbuildings | 82,569 | 85,714 |
| Total | 2,503,559 | 2,598,934 |
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2025 | Leaseexpenserecognisedin2024 |
| OtherrelatedpartiesoftheCompany | Officebuildings | 1,338,387 | 1,396,340 |
| Total | Officebuildings | 1,338,387 | 1,396,340 |
7Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
| Item | Relatedparty | 2025 | 2024 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivables | OtherrelatedpartiesoftheCompany | - | - | 227,042 | 245 |
| Prepayments | OtherrelatedpartiesoftheCompany | - | - | 5,344,237 | -? |
| Otherreceivables | Subsidiaryoftheparentcompany | 626,611,486 | - | 745,371,507 | -? |
| Othernon-currentassets | Subsidiaryoftheparentcompany | 1,812,430,000 | - | 1,864,430,000 | -? |
Payablestorelatedparties
Item
| Item | Relatedparty | 2025 | 2024 |
| Accountspayable | OtherrelatedpartiesoftheCompany | 4,247,251 | 5,528,108 |
| Otherpayables | Subsidiaryoftheparentcompany | 483,448,133 | 441,845,995 |
| Otherpayables | OtherrelatedpartiesoftheCompany | 400,000 | 400,000 |
XVIII.Extraordinarygainsandlossesin2025
| Item | Amount | |
| (1) | Profitandlossfromdisposalofnon-currentassets | 1,348,534 |
| (2) | Governmentgrantsrecognisedthroughprofitorloss(exceptforthosewhicharecloselyrelatedtothecompany’snormaloperations,whichthecompanyisentitledtounderestablishedstandardsinaccordancewithgovernmentpoliciesandwhichhaveacontinuingimpactontheprofitsandlossesofthecompany) | 35,137,675 |
| (3) | Othernon-operatingincomeandexpensesbesidesitemsabove | 4,751,888 |
| Sub-total | 41,238,097 | |
| (4) | Taxeffect | (4,473,472) |
| (5) | Effectonnon-controllinginterestsaftertaxation | (4,601,496) |
| Total | 32,163,129 | |
Note:Extraordinarygainandlossitems(1)to(3)listedabovearepresentedintheamount
beforetaxation.XIX.Returnonnetassetsandearningspershare1Calculationofearningspershare
(1)Basicearningspershare
Forcalculationofthebasicearningspershare,pleaserefertoNoteV.49.
(2)Basicearningspershareexcludingextraordinarygainandloss
BasicearningspershareexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
2025
| 2025 | 2024 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 71,291,303 | 305,210,999 |
| ExtraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany | 32,163,129 | 174,145,642 |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 39,128,174 | 131,065,357 |
| Weightedaveragenumberofordinarysharesoutstanding | 662,765,035 | 684,370,832 |
| Basicearningspershareexcludingextraordinarygainandloss(RMB/share) | 0.06 | 0.19 |
(3)Dilutedearningspershare
Forcalculationofthedilutedearningspershare,pleaserefertoNoteV.49.
(4)Dilutedearningspershareexcludingextraordinarygainsandlosses
DilutedearningspershareexcludingextraordinarygainsandlossesiscalculatedbydividingconsolidatednetprofitexcludingextraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany(diluted)bytheweightedaveragenumberofordinarysharesoutstanding(diluted):
| 2025 | 2024 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany(diluted) | 71,291,303 | 305,210,999 |
| ExtraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany | 32,163,129 | 174,145,642 |
| ConsolidatednetprofitexcludingextraordinarygainsandlossesattributabletotheCompany’sordinaryequityshareholders(diluted) | 39,128,174 | 131,065,357 |
| Weightedaveragenumberofordinarysharesoutstanding(diluted) | 662,765,035 | 684,370,832 |
| Dilutedearningspershareexcludingextraordinarygainsandlosses(RMB/share) | 0.06 | 0.19 |
2Calculationofweightedaveragereturnonnetassets
(1)Weightedaveragereturnonnetassets
WeightedaveragereturnonnetassetsiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:
2025
| 2025 | 2024 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 71,291,303 | 305,210,999 |
| Weightedaverageamountofconsolidatednetassets | 10,497,191,719 | 10,773,554,817 |
| Weightedaveragereturnonnetassets | 0.68% | 2.83% |
Calculationofweightedaverageamountofconsolidatednetassetsisasfollows:
| 2025 | 2024 | |
| Consolidatednetassetsatthebeginningoftheyear | 10,619,208,419 | 10,841,500,988 |
| EffectofconsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 47,338,283 | 140,140,353 |
| EffectsofRestrictedShareIncentivePlan | - | 9,251,615 |
| Acquisitionofnon-controllinginterests | - | (715,809) |
| Effectofsharesrepurchased(NoteV.33) | (35,963,946) | (14,840,361) |
| Effectofcashdividends(NoteV.36) | (133,391,037) | (201,781,969) |
| Weightedaverageamountofconsolidatednetassets | 10,497,191,719 | 10,773,554,817 |
(2)Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss
WeightedaveragereturnonnetassetsexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:
| 2025 | 2024 | |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 39,128,174 | 131,065,357 |
| Weightedaverageamountofconsolidatednetassets | 10,497,191,719 | 10,773,554,817 |
| Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss | 0.37% | 1.22% |
YantaiChangyuPioneerWineCo.,Ltd.
BoardofDirectors
April18,2026