YantaiChangyuPioneerWineCo.,Ltd.
2020AnnualReport
Final2021-01
April2021
Contents
I、ImportantNotice，
ContentsandDefinition ...... 3II、BriefIntroductionfortheCompanyandMainFinancialIndicators ...... 5
III、SummaryoftheCompany’sBusinesses ...... 10
IV、ManagementDiscussionandAnalysis ...... 14
V、Majorissues ...... 35
VI、ChangesinSharesandtheShareholders’Situation ...... 51VII、RelatedSituationofPreferredShares ...... 59
VIII、RelatedSituationofConvertibleCorporateBonds ...... 59
IX、SituationforDirectors,Supervisors,SeniorExecutivesandStaffs ...... 60
X、CorporateGovernance ...... 71
XI、RelatedSituationofCorporationBonds ...... 78
XII、FinancialReport ...... 79XIII、ReferenceDocument ...... 194
I.ImportantNotice,ContentandDefinition
Theboardofdirectors，theboardofSupervisors，directors,supervisorsandseniorexecutivesoftheCompanyguaranteethetruthfulness,accuracyandcompletenessofthecontentscontainedinthereportwithnofalserecords,misleadingstatementsorsignificantomissions,andundertakeindividualandjointlegalliabilities.Mr.ZhouHongjiang(PersoninchargeoftheCompany),Mr.JiangJianxun(Personinchargeofaccountingwork)andMs.GuoCuimei(Personinchargeofaccountingorgan&Accountantincharge)assurethetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.Alldirectorshavepersonallyattendedthemeetingfordeliberatingtheannualreport.Forward-lookingstatementssuchasfutureplansanddevelopmentstrategiescoveredinthisreportdonotconstituteasubstantialcommitmentoftheCompanytoinvestors.Investorsareadvisedtopayattentiontoinvestmentrisks.Aboutsignificantrisksthatmaybefacedinproductionandoperationprocess,pleasereferto“(5)PotentialRisks”of“9.ExpectationfortheCompany’sFutureDevelopment”intheChapterFour“ManagementDiscussionandAnalysis”ofthereport.Investorsareadvisedtoreadcarefullyandpayattentiontoinvestmentrisks.TheCompany’spreliminaryschemeofprofitdistributiondeliberatedandpassedbytheboardofdirectorsthistimeisshownasfollowing:BasedontheCompany’stotal685,464,000shares,weplantopayCNY4(includingtax)incashasdividendsforevery10sharestoallshareholdersandsend0bonusshare(includingtax).Capitalreservewillnotbetransferredtoequity.
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 | Mr.ZhouHongjiang | ||
| RegisteredAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCode | 264000 | ||
| OfficeAddress | 56DamaRoad,Yantai,Shandong,China | ||
| PostalCode | 264000 | ||
| Website | http://www.changyu.com.cn | ||
| webmaster@changyu.com.cn | |||
2.Contactpersonandinformation
| SecretarytotheBoardofDirectors | AuthorizedRepresentativeofSecuritiesAffairs | |
| Name | Mr.JiangJianxun | Mr.LiTingguo |
| Address | 56DamaRoad,Yantai,Shandong,China | 56DamaRoad,Yantai,Shandong,China |
| Tel. | 0086-535-6602761 | 0086-535-6633656 |
| Fax. | 0086-535-6633639 | 0086-535-6633639 |
| jiangjianxun@changyu.com.cn | stock@changyu.com.cn |
3.Informationdisclosureandfilinglocation
| MedianameforinformationdisclosureselectedbytheCompany | ChinaSecuritiesNewspaper,SecuritiesTimesandHongKongCommercialDaily |
| WebSiteassignedbyCSRCtocarrytheannualreport | http://www.cninfo.com.cn |
| FilinglocationoftheCompany’sannualreport | BoardofDirectors’OfficeoftheCompany,56DamaRoad,Yantai,Shandong |
4.Registrationchanges
| OrganizationCode | 913700002671000358 |
ChangesforthemainbusinessesoftheCompanysinceitwaslisted
| ChangesforthemainbusinessesoftheCompanysinceitwaslisted | ThebusinessscopedeterminedbytheCompanywhenitwasestablishedonSeptember18th,1997isproduction,processingandsalesofwine,distilledliquor,healthyliquor,fruitliquor,non-alcoholbeverage,fruitjam,packingmaterialandwinemakingmachine.OnApril17th,2008,approvedbythe2007shareholders’meeting,theCompany’sbusinessscopeischangedtoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterial,winemakingmachinesandlicensedimportandexport.OnMay12th,2010,approvedbythe2009shareholders’meeting,theCompanychangeditsbusinessscopetoproduction,processingandsalesofwine,distilledliquor,medicinalliquor,fruitliqueur,non-alcoholbeverage,fruitjam,packingmaterialanditsproducts,winemakingmachinery,licensedimportandexportandexternalinvestmentaccordingtonationalpolicy.OnSeptember23rd,2016,approvedbythe2016annual1stInterimshareholders’meeting,theCompanychangeditsoperatingscopetowineandfruitwine(bulkwine,processingandfilling)production,blendingliquorandotherblendingliquors(grapeliqueur)production,otherliquors(otherdistilledliquors)production,production,processingandsalesofpackingmaterialandwinemakingmachinery,grapeplantationandprocurement,tourismresourcesdevelopment(excludingtourism),packagingdesign,activityofbuildingrental,licensedimportandexport,warehousebusinessandexternalinvestmentaccordingtonationalpolicy. |
| Changesforallpreviouscontrollingshareholders | No. |
5.OtherrelevantinformationTheaccountingfirmappointedbytheCompany
| Name | KPMGHuazhenLLP |
| Address | Level8,No.2EastWingofDongfangSquare,No.1EastChang’anStreet,DongchengDistrict,Beijing |
| Nameofsignatoryaccountants | Ms.WangTing,Ms.ChaiJing |
ThesponsorinstitutionappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Available?NotavailableThefinancialadviserappointedbytheCompanytoperformthedutyofcontinuoussupervisionduringthereportperiod
□Available?Notavailable
6.KeyaccountingdataandfinancialindicatorsWhethertheCompanyneedstoretrospectivelyadjustorrestatetheaccountingdataofpreviousfiscalyears.?Yes□NoReasonforretrospectivelyadjustingorrestatingtheaccountingdataAmalgamationofenterpriseunderthesamecontrol
2020
| 2020 | 2019 | MoreorlessthanLastyear(%) | 2018 | |||
| Beforeadjustment | Afteradjustment | Afteradjustment | Beforeadjustment | Afteradjustment | ||
| Operatingrevenue(CNY) | 3,395,402,001 | 5,031,011,489 | 5,074,025,899 | -33.08% | 5,142,244,740 | 5,142,244,740 |
| Netprofitattributedtoshareholdersofthelistedcompany(CNY) | 470,860,587 | 1,129,735,749 | 1,141,367,296 | -58.75% | 1,042,632,929 | 1,042,632,929 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses(CNY) | 397,655,187 | 892,075,931 | 892,496,644 | -55.44% | 965,426,238 | 965,426,238 |
| Netcashflowsfromoperatingactivities(CNY) | 505,146,673 | 837,838,024 | 848,852,360 | -40.49% | 975,978,746 | 975,978,746 |
| Basicearningspershare(CNY) | 0.69 | 1.65 | 1.67 | -58.68% | 1.52 | 1.52 |
| Dilutedearningspershare(CNY) | 0.69 | 1.65 | 1.67 | -58.68% | 1.52 | 1.52 |
| Weightedaverageforearningrateofnetassets(CNY) | 4.57% | 11.30% | 11.40% | -6.83% | 11.23% | 11.23% |
| December31st,2020 | December31st,2019 | MoreorlessthanLastyear(%) | December31st,2018 | |||
| Beforeadjustment | Afteradjustment | Afteradjustment | Beforeadjustment | Afteradjustment | ||
| Totalassets(CNY) | 13,102,481,541 | 13,647,932,568 | 13,764,855,252 | -4.81% | 13,117,729,052 | 13,117,729,052 |
| NetAssetsattributedtoshareholdersofthelistedcompany(CNY) | 10,267,832,644 | 10,308,910,198 | 10,402,248,821 | -1.29% | 9,606,099,365 | 9,606,099,365 |
Thelowerofthenetprofitbeforeandafternon-recurringgainsandlossesinrecentthreefiscalyearsisnegativeandtheauditreportinrecentoneyearindicatesthereisuncertaintyintheCompany’ssustainableoperationability
□Yes?NoThelowerofthenetprofitbeforeandafternon-recurringgainsandlossesisnegative
□Yes?No
7.DifferencesinaccountingdataunderPRCaccountingstandardsandinternationalaccountingstandards
(1)DifferencesbetweennetprofitsandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandards
□Available?NotavailableTherearenodifferencesbetweennetprofitsandnetassetsinthefinancialreportdisclosedaccordingtobothinternationalaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
(2)DifferencesbetweennetprofitsandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandards
□Available?NotavailableTherearenodifferencesbetweennetprofitsandnetassetsinthefinancialreportdisclosedaccordingtobothforeignaccountingstandardsandPRCaccountingstandardsduringthereportperiod.
8.Keyfinancialindicatorsbyquarter
Unit：CNY
stQuarter
| 1stQuarter | 2ndQuarter | 3rdQuarter | 4thQuarter | |
| Operatingrevenue | 805,715,048 | 612,833,499 | 774,191,143 | 1,202,662,311 |
| Netprofitattributedtoshareholdersofthelistedcompany | 234,499,910 | 84,140,165 | 85,120,851 | 67,099,661 |
| Netprofitattributedtoshareholdersofthelistedcompanyafterdeductingnon-recurringprofitsandlosses | 225,980,141 | 40,786,708 | 73,406,867 | 57,481,471 |
| Netcashflowsfromoperatingactivities | -118,493,699 | 101,974,947 | 268,955,826 | 252,709,599 |
Whethertherearesignificantdifferencesbetweentheabovementionedfinancialindicatorsortheirsumandtherelatedfinancialindicatorsinthequarterlyreportsandsemi-annualreportsdisclosedbytheCompany.
□Yes?No
9.Itemandamountofnon-recurringprofitandloss?Available□Notavailable
Unit：CNY
Item
| Item | 2020 | 2019 | 2018 | Explanation |
| Profitsandlossesondisposalofnon-currentassets,includingtheprovisionforassetimpairmentwrite-offpart | -1,165,162 | 6,272,676 | 11,368,355 | |
| Governmentgrantsincludedinthecurrentprofitsandlosses(exceptforthoserecurringgovernmentgrantsthatarecloselyrelatedtotheentity'soperation,inlinewithrelatedregulationsandhaveproperbasisofcalculation) | 73,180,848 | 84,837,581 | 87,281,434 | |
| Thesubsidiary’snetprofitandlossforthecurrentperiodfromthebeginningoftheperiodtothecombiningdateresultingfromthecombinationofenterprisesunderthesamecontrol | 12,715,544 | 16,514,012 | ||
| Othernon-operatingrevenuesandexpendituresinadditiontotheaforementioneditems | 10,098,551 | 7,298,479 | 3,817,401 | |
| Otherprofitandlossprojectsconformingtothedefinitionofnon-recurringprofitandloss | 218,649,636 | |||
| Less：Incometaxeffect | 21,595,671 | 84,171,927 | 25,157,188 | |
| Minorityshareholders'equityeffect(aftertaxes) | 28,710 | 529,805 | 103,311 | |
| Total | 73,205,400 | 248,870,652 | 77,206,691 | -- |
Thereasonsshallbemadeclearanddefinitelyastothenon-recurringprofitandlossthattheCompanyhasdefinedbyvirtueoftheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1-Non-recurringProfitandLossandastoregardingthenon-recurringprofitandlossasrecurrentprofitandlossasspecifiedintheExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1–Non-recurringProfitandLoss.□Available?NotavailableTherearenocasesthatnon-recurringprofitandlossisdefinedandspecifiedasrecurrentprofitandlossinaccordancewiththeExplanatoryAnnouncementonPublicCompany’sInformationDisclosureNo.1-Non-recurringProfitandLossduringthereportperiod.
III.SummaryoftheCompany’sBusinesses
1.MainbusinessesduringthereportperiodTheCompanyneedtocomplywiththedisclosurerequirementsof“ShenzhenStockExchangeIndustryInformationDisclosureGuidelineNo.14-ListedCompaniesEngageinFoodandLiquorManufacturingRelatedBusinesses”.
(1)SituationoftheindustryinwhichtheCompanyoperatesDuringthereportperiod,theCompany’smainbusinessesareproductionandoperationofwineandbrandy,thusprovidingdomesticandforeignconsumerswithhealthyandfashionablealcoholicdrinks.Comparedwithearlierstage,therearenosignificantchangeshappenedtotheCompany’smainbusinesses.ThewineindustrythattheCompanyinvolvedinisstillingrowthstage.Althoughbeingaffectedbymanyfactorsfortheshort-term,thecompetitioninthemarketisfierceandthewineconsumptiontemporarilydeclines.However,seenfromthelongterm,thewholedomesticwinemarketisontherisingtrend.TheCompanyisattheforefrontinthedomesticwinemarket.
(2)LicenseobtainedAsofMarch31
st,2021,theCompanyanditssubsidiarieshaveobtained8foodproductionlicenses(alcohol),ofwhichthefoodproductionlicenseshavingbeenobtainedsincethebeginningof2020areasfollows:
Producername
| Producername | Foodcategory | Obtainingtime | Obtainingmethod | Foodproductionlicensenumber |
| ShaanxiChateauChangyuRenaCo.,Ltd. | Alcohol | October19th,2020 | Approvalfromgovernmentauthority | SC11561040400532 |
| YantaiChateauKoyaBrandyCo.,Ltd. | Alcohol | January11th,2021 | Approvalfromgovernmentauthority | SC11537063601165 |
(3)ExplanationforothermajoreventsDuringthereportperiod,theredidnotexistthetrademarkownershipdispute,foodqualityissueorfoodsafetyincidentetc.thathadasignificantimpactontheCompany.
2.Significantchangesofmainassets
(1)Significantchangesofmainassets
Mainassets
| Mainassets | Explanationofsignificantchanges |
| Equityasset | Increasingby9.74%comparedwiththebeginningoftheperiod,mainlyowingtotheCompany’sparticipationinestablishingjointventureVermouth(Shanghai)EnterpriseDevelopmentCo.,Ltd.andYantaiSantaiRealEstateDevelopmentCo.,Ltd. |
| Fixedasset | Decreasingby3.68%comparedwiththebeginningoftheperiodwithnosignificantchange |
| Intangibleasset | Increasingby1.29%comparedwiththebeginningoftheperiodwithnosignificantchange |
| Constructioninprocess | Increasingby11.99%comparedwiththebeginningoftheperiod,mainlyowingtothefundinputintoinvestmentprojectsduringthereportperiod |
(2)Mainoverseasassetssituation?Available□Notavailable
Unit：CNY
| Detailsofassets | Formationreasons | Assetsscale | Location | Operationmode | Controlmeasuresforsafeguardingofassetsecurity | Earningcondition | ProportionofoverseasassetsintheCompany’snetassets | Whethertherearesignificantimpairmentrisks |
| HaciendaYVinedosMarquesDelAtrio.SL | Acquisitionofequity | 548,609,709 | Spain | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectorsandappointsCFOonfinancialmanagement. | 16,468,138 | 5.22% | No |
| IndomitaWineCompanyChile,S.p.A. | Establishmentofjointventure | 522,848,985 | Chile | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardof | 18,196,663 | 4.98% | No |
directors.
| directors. | ||||||||
| KilikanoonEstatePty.,Ltd. | Acquisitionofequity | 170,864,239 | Australia | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | 1,674,686 | 1.63% | No |
| FrancsChampsParticipationsSAS | Soleproprietorshipestablishment | 227,400,698 | France | Independentoperation | TheCompanyparticipatesinmakingimportantdecisionsthroughboardofdirectors. | -2,388,428 | 2.16% | No |
| Explanationforothersituation | No | |||||||
3.AnalysisofcorecompetitivenessComparedwiththeparticipantsinthearenaoftheChinesewinesector,webelievethattheCompanyiswiththefollowingadvantages:
Firstly,theCompanyhasalargebrandinfluence.Mainbrandsusedhavealonghistory.“Changyu”,“NobleDragon”and“AFIP”areallChinafamousbrandsthathavestronginfluenceandgoodreputation.Secondly,theCompanyhassetupanationwidemarketingnetwork,formeda“three-level”marketingnetworksystemmainlycomposedoftheCompany’ssalesmenanddealers,withstrongmarketingabilityandmarketexploitationability.Thirdly,theCompanyhasstrongscientificprowessandaproductR&Dsystem.Relyingonthecountry’sonly“State-levelWineR&DCenter”,theCompanyhasmasteredadvancedwinemakingtechnologyandproductionprocessesaswellasbeenpowerfulenoughinproductinnovationandperfectqualitycontrolsystem.
Fourthly,theCompanyisinpossessionofalotofgrape-growingbasesthatarecompatiblewithitsdevelopmentrequirements.TheCompanyhasdevelopedagreatdealofvineyardsinthemostsuitableareasforwinegrapegrowingsuchasShandong,Ningxia,Xinjiang,Liaoning,HebeiandShaanxi,whosescaleandstructurehavegenerallymettheCompany’sneedsfordevelopment.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.
IV.ManagementDiscussionandAnalysis
1.SummarizationIn2020,influencedbymanyfactors,suchastheslowdownofdomesticeconomicgrowthandtheCOVID-19epidemic,thecompetitionindomesticwinemarketwasverystrong.Thesalesvolumesofbothimportedwineanddomesticwinecontinuedthedecreasingtrend.MostwineproductionenterprisesgotintotroubleandtheProfitabilityhadasignificantdecrease.Thedomesticwineindustrywasgenerallyonthevergeofloss.Facingquitealotofexternaldisadvantages,theCompanypersistedintakingthemarketasthecenter,adheredtothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonbigproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,andmadethemostofadvantagesincludinglonghistory,strongcapitalstrength,highbrandawareness,widespreadmarketingnetworkandabundantproductsandoontostrivetopromoteproductsales,bearingtheseveremarkettest,maintainingtheindustryleadership,furtherwideningthegapwithmajordomesticcompetitorsandrealizingoperatingrevenueofCNY3,395.4millionwithayear-on-yeardecreaseof33.08%andnetprofitofCNY470.86millionbelongingtotheparentcompany’sshareholderswithayear-on-yeardecreaseof58.75%.TheCompany’sproductsweredividedintotwoseries:wineandbrandy.Forwine,mainbrandsincludedChangyu,NobleDragon,AFIP,ChangyuMoserXV,GoldenIceValley,Zenithwirl,Vermouth,Rena,BaronBalboa,J.LORMIN,Atrio,KilikanoonandIWCCandsoon.ForBrandy,mainbrandsincludedKoya,Mminni,Pagese,RoulletFransacandsoon.MajorsalesmodeTheCompany’smainsalesmodewasthedistributionmode,andmainsaleschannelwasofflinesales,thatis,theCompany’sproductsweredistributedtosalesterminalsthroughapproximately4,000distributorsathomeandabroadandultimatelyprovidedtoconsumers.Distributionmode?Available□Notavailable
(1)Situationofchangeinthenumberofdistributors
Region
| Region | Numberatthebeginningof2020 | Increasednumberduringthisreportperiod | Numberattheendof2020 |
| EasternChina | 1,716 | -14 | 1,702 |
| SouthChina | 536 | 5 | 541 |
| CentralChina | 486 | -7 | 479 |
NorthChina
| NorthChina | 358 | 0 | 358 |
| NorthwestChina | 170 | -14 | 156 |
| SouthwestChina | 416 | -5 | 411 |
| NortheastChina | 338 | -49 | 289 |
| HongKong,Macao,TaiwanChinaandoverseas | 523 | -12 | 511 |
| Total | 4,543 | -96 | 4,447 |
(2)TheCompanyadoptedthesettlementmethodofcashandcarrywiththedistributors,andmainlyadoptedbuyoutdistributionmode.Theratioofsalesinself-ownedexclusiveshopexceeds10%□Available?NotavailableSalesofonlinedirectselling?Available□Notavailable
| Salesmodel | 2020 | 2019 | ||||
| Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | Operatingincome(CNY) | Operatingcost(CNY) | Grossmargin | |
| Distribution | 2,945,453,550 | 1,289,537,264 | 56.22% | 4,482,151,460 | 1,619,894,602 | 63.86% |
| Directsales | 449,948,451 | 214,340,143 | 52.36% | 591,874,439 | 257,764,136 | 56.45% |
| Total | 3,395,402,001 | 1,503,877,407 | 55.71% | 5,074,025,899 | 1,877,658,738 | 62.99% |
Thechangeinsalespricesofmajorproductsaccountingformorethan10%oftotaloperatingincomeincurrentreportperiodexceeds30%comparedwiththoseinlastreportperiod
□Available?NotavailableProcurementmodeandprocurementcontent
Unit:CNY
| Procurementmode | Procurementcontent | Amountofmajorprocurementcontents |
| Qualitativeandpricecomparison | Rawmaterialsincluding | 31,062.86 |
grapeandsoon
| grapeandsoon | ||
| Invitationforbids/qualitativeandpricecomparison | Packagingmaterials | 40,706.81 |
| Invitationforbids/qualitativeandpricecomparison | Brewingmaterials | 1,642.48 |
| Invitationforbids/qualitativeandpricecomparison | Goodsandmaterialsforvineyard | 1,027.43 |
| Contract | Fuelandpower | 4,107.89 |
| Qualitativeandpricecomparison | Otheralcoholicproductsandderivatives | 1,258.95 |
Amountofpurchasingrawmaterialsfromcooperativesorfarmersexceeds30%oftotalprocedureamount□Available?NotavailableTheyear-on-yearchangeinthepriceofmajoroutsourcedrawmaterialsexceeds30%
□Available?NotavailableMajorproductionmodeTheproductionmodeoftheCompanyisself-produce.Manufacturingconsignment□Available?NotavailableMajorcomponentsofoperatingcostsYieldandinventory
| Year | Category | Yield(ton) | Salesvolume(ton) | Inventory(ton) |
| 2019 | Wine | 90,001 | 93,090 | 16,885 |
| Brandy | 39,104 | 35,884 | 7,606 | |
| 2020 | Wine | 67,477 | 70,662 | 15,898 |
| Brandy | 26,513 | 27,752 | 12,624 |
2.Analysisofmainbusiness
(1)Summarization
Description
| Description | Increaseordecreaseoftheendoftheperiodovertheendoflastyear | Causeofsignificantchanges |
| Operatingrevenue | -33.08% | Mainlybecauseofdecreaseinsalesvolume |
| Operatingcost | -19.91% | Mainlybecauseofdecreaseinsalesvolume |
| Salesexpense | -27.57% | Mainlybecauseofreducedmarketingactivitiesaffectedbytheepidemic |
| Managementexpense | -6.82% | Mainlybecauseofdecreaseintheexpenditureofwageforadministrativestaff |
| R&Dexpense | -24.99% | Mainlybecauseofdecreaseinresearchinput |
| Financialexpense | -42.10% | Mainlybecauseofincreaseininterestincomeanddecreaseininterestexpense |
| Netamountofcashflowgeneratedinoperatingactivities | -40.49% | Mainlybecauseofdecreaseinsalesvolume |
| Netamountofcashflowgeneratedininvestmentactivities | 31.71% | Mainlybecauseofdecreaseincashexpenditureforpurchasingfixedassets |
| Netamountofcashflowgeneratedincapital-raisingactivities | -47.05% | Mainlybecauseofincreaseincashpaidfordebtrepayment |
ReviewandsummaryoftheprocessoftheCompany’searly-discloseddevelopmentstrategyandbusinessplanduringthereportperiodDuringthereportperiod,thedomesticwineindustrywashithard,thewineconsumptionmarketwassmallanddisorderly,offlinechannelsufferedserioussetbacks,andonlinechannelwasnotoptimistic.TheCompanyrealizedtheoperatingrevenueofCNY3,395.4millionwithandecreaseof33.08%comparedwithlastyear,lowerthanthetargetfixedatthebeginningoftheyearofrealizingoperatingrevenuenolessthanCNY3.7billion,andrealizedthenetprofitofCNY470.86millionbelongingtotheparentcompany’sshareholderswithandecreaseof58.75%comparedwithlastyear.Themainworksduringthereportperiodwereshownasfollowed:
Firstly,theCompanycoordinatedepidemicpreventionworkandoperationwork.AftertheoutbreakofCOVID-19epidemicinChina,theCompanytookthepreventionandcontroloftheepidemicasaveryimportanttask,quicklyestablishedateamforepidemicpreventionandcontrol,linkedupanddownandorganizedmultiplemeetingstoimproveandimplementthepreventionandcontrolworkplan.Afterthedomesticepidemicgotrelieved,in
accordancewiththerequirementsofrelevantgovernmentdepartments,theCompanyactivelyorganizedtheproductionresumption,insistedthenormalizedepidemicmanagementwork,successfullyachieved“zeroinfection”and“zeroaccidents”andbetterbalancedepidemicpreventionandcontrolworkandoperationwork.Secondly,theCompanyactivelyadjustedmarketstrategies.TheCompanyvigorouslyconsolidatedthesalessystemdividedbasedondifferentalcoholicproductsvarietiesandcontinuedpromotingthesystemconstructionfordomesticwine,brandyandimportedwine.Fordomesticwine,atthebeginningoftheyear,theCompanyactivelycopedthechallengeoftheepidemic,successivelylaunchedmanyactivities,includingcarryingoutnon-contactdistribution,recruitingcommunitypartners,holding“CloudDrinking”tastingactivityandencouragingallemployeestoconductshortvideomarketingactivityandsoon.TheCompanyespeciallyadoptedaquotasystemtoNobleDragoninordertofurtherregulatethemarket.ForBrandy,theCompanyfullyimplementedthe“ThreeFocuses”strategy,steadilyimprovingtheproductstructureandfurtherincreasingtheproportionofmid-to-high-endproducts,focusedonthemarketingandpromotionwork,suchastastingactivitiesandchateauexperienceetc,andconstantlyimprovedtheformatoftastingactivities.Forimportedwine,theCompanyadheredtothepositioningofYantaiChangyuPioneerInternationalWineCo.,Ltd.asa“brandoperatingcompany”,whichfurtherincreasedtheproportionofoverseasacquiredbrands.Besidesthese,theCompanyimprovedthebrandmanagersystemtofurtherclarifytherightsandresponsibilitiesofbrandmanagers,improvedtheassessmentmethodtosalespersonneltostrivetoeliminatesystemdefectsandincreasetheenthusiasmofsalespersonnel,promotedtheintegrationofregionallogisticstransshipmentcentersandreformedthedistributionsystemtoimprovedistributionefficiencyandreducelogisticscosts.TheCompanyalsoacceleratedthepaceofdigitaltransformation,completedthecodeforeachbottleofnewproduct,launched“ChangyuMemberApplet”,“ChangyuSmartRetailMall”andblockchaindigitalcertificationandsoon,intensifiedonlinesalesandstrengthenedcooperationwithbigonlineenterprisestoachieveanewbreakthroughinonlinesales.Thirdly,TheCompanyinsistedimprovingproductquality.TheCompanyfurtherintensifiedthebrandwinemakersystem,strengthenedtheresponsibilityofbrandwinemakersforinternalqualityofcorrespondingbrandproducts,andenhancedproductcompetitiveness.Greatprogresswasmadeinthedevelopmentofnewproducts.XinjiangChateaupassedtheorganicchateaucertification.NingxiaChateau,BeijingChateau,XinjiangChateauandYantaiChateaucompletedproductupgrades.J.LORMINandVermouthlaunchednewproducts.RegionallycustomizedproductsofCastel,NobleDragon,low-endwinesandbrandyandsoonwerelaunched.ThequalityoftheCompany’sdomesticchateauwineswererecognizedbyinternationalauthorities.Thisyear,itwon99medalsininfluentialinternationalcompetitions,including5grandgoldmedalsand35goldmedals.ThenewredandwhiteVermouthwonthegoldmedalin2020ISGC.NobleDragonwonthechampioninthe“TheWorld’sBestSellingWineBrandsBlindTasting”.GoldenIceValleyicewinescored93pointsinthe“BlindTastingTheWorld’sBestIcewines”.AFIPchateauwinerankedTop3inBlind-tastingTheStarsofTheWineWorld.Moserchateauwinegot93
scoresinwww.erobertparker.com.Inaddition,overseasacquiredchateauproductsalsoreceivedmanyawards.Forexample,Kilikanoonwinewon13goldmedalsinMundusVini,wasawardedthe“AustralianWineryoftheYear”seventimes,andwasawardedthe“AustralianBestProducer”forthefourthconsecutiveyear;IWCCobtainedChina’sorganiccertificationandachievedthe“GrandSlam”oforganiccertificationinsixmajorcountriescontainingUnitedStates,EuropeanUnion,Japan,Switzerland,UKandChina,whosecustomizedwinewasselectedasthecelebrationgiftattheCelebrationsonthe50
thanniversaryoftheestablishmentofdiplomatictiesbetweenChinaandChileheldonDecember11
th
.Fourthly,theCompanystrengthenedfinancialmanagementandauditsupervision.TheCompanymadefulluseofthecentralizedcapitalmanagementandcontrolmechanism,whichimprovedtheefficiencyofcapitaluseandreducedcapitaloccupationandfinancingcosts.Utilizingthefavorablefactorsofexchangeratechanges,relevantdepartmentscollaboratedasawholeandreasonablygraspthetimingofimportandforeignexchangepurchasing,whichsavedtheexpenditureofforeignexchangepurchasing.TheCompanyalsostrengthenedtheauditintheauthenticityoffinancialrevenuesandexpenditures,andconductedacomprehensiveauditintheprofitauthenticityofmainoperatingsubsidiaries,intheeconomicresponsibilitiesofoutgoingmiddle-and-high-levelpersonnelandinthemajortechnologicaltransformationprojects.
(3)Revenueandcost①Compositionofoperatingrevenue
Unit:CNY
2020
| 2020 | 2019 | Year-on-yearincreaseordecrease(%) | |||
| Amount | Proportioninoperatingrevenue | Amount | Proportioninoperatingrevenue | ||
| Totaloperatingrevenue | 3,395,402,001 | 100% | 5,074,025,899 | 100% | -33.08% |
| Sector-classified | |||||
| Sectorofliquorandalcoholicbeverage | 3,395,402,001 | 100% | 5,074,025,899 | 100% | -33.08% |
| Product-classified | |||||
| Wine | 2,424,359,348 | 71.40% | 3,855,645,607 | 75.99% | -37.12% |
| Brandy | 877,428,035 | 25.84% | 1,073,184,805 | 21.15% | -18.24% |
| Tourism | 69,589,233 | 2.05% | 109,037,225 | 2.15% | -36.18% |
| Others | 24,025,385 | 0.71% | 36,158,262 | 0.71% | -33.55% |
| Area-classified | |||||
| Domestic | 2,889,121,152 | 85.09% | 4,525,427,680 | 89.19% | -36.16% |
| Overseas | 506,280,849 | 14.91% | 548,598,219 | 10.81% | -7.71% |
②Thecasesofindustry,productorareaaccountingforover10%intheCompany’soperatingrevenueoroperatingprofit?Available□Notavailable
Unit:CNY
Operatingrevenue
| Operatingrevenue | Operatingcost | Grossmargin | Year-on-yearincreaseordecrease(%)ofoperatingrevenue | Year-on-yearincreaseordecrease(%)ofoperatingcost | Year-on-yearincreaseordecrease(%)ofgrossprofitrate | |
| Sector-classified | ||||||
| Sectorofliquorandalcoholicbeverage | 3,395,402,001 | 1,503,877,407 | 55.71% | -33.08% | -19.91% | -7.29% |
| Product-classified | ||||||
| Wine | 2,424,359,348 | 1,101,745,053 | 54.56% | -37.12% | -20.50% | -9.50% |
| Brandy | 877,428,035 | 365,401,066 | 58.36% | -18.24% | -16.36% | -0.93% |
| Tourism | 69,589,233 | 23,954,081 | 65.58% | -36.18% | -36.42% | 0.13% |
| Others | 24,025,385 | 12,777,207 | 46.82% | -33.55% | -25.56% | -5.71% |
| Area-classified | ||||||
| Domestic | 2,889,121,152 | 1,223,020,007 | 57.67% | -36.16% | -19.20% | -8.88% |
| Abroad | 506,280,849 | 280,857,400 | 44.53% | -7.71% | -22.84% | 10.87% |
UndertheconditionthatthestatisticalcaliberoftheCompany’smainbusinessdataisadjustedduringthereportperiod,theCompany’smainbusinessdataadjustedonthebasisofcaliberattheendofreportperiodinrecentoneyear.□Available?Notavailable
③WhethertheCompany’ssalesrevenueformaterialobjectismorethanlaborservicerevenue?Yes□No
| Sector | Project | Unit | 2020 | 2019 | Year-on-yearincreaseordecrease(%) |
| Alcoholandalcoholicbeverageindustry | Salesvolume | Ton | 93,501 | 127,129 | -26.45% |
| Yield | Ton | 93,990 | 129,104 | -27.20% | |
| Inventory | Ton | 24,925 | 21,007 | 18.65% |
Explanationonthecausesofover30%year-on-yearchangesoftherelatedcomparisondata□Available?Notavailable
④ThefulfillmentofmajorsalescontractsignedbytheCompanyuptothereportperiod□Available?Notavailable
⑤CompositionofoperatingcostsClassificationofsectorandproduct
Unit:CNY
Sector
| Sector | Project | 2020 | 2019 | Year-on-yearincreaseordecrease(%) | ||
| Amount | Proportionintheoperatingcost(%) | Amount | Proportionintheoperatingcost(%) | |||
| Liquorandalcoholicbeverage | Blendingliquor | 731,348,214 | 49.42% | 933,730,318 | 50.75% | -1.33% |
| Packingmaterial | 457,572,889 | 30.92% | 626,670,556 | 34.06% | -3.14% | |
| Wages | 56,969,384 | 3.85% | 65,607,418 | 3.57% | 0.28% | |
| Manufacturingexpenses | 234,032,840 | 15.81% | 213,977,095 | 11.62% | 4.19% | |
Unit:CNY
| Sector | Project | 2020 | 2019 | Year-on-yearincreaseordecrease(%) | ||
| Amount | Proportionintheoperatingcost(%) | Amount | Proportionintheoperatingcost(%) | |||
| Wine | Blendingliquor | 540,591,702 | 49.07% | 703,625,279 | 50.77% | -1.70% |
| Packingmaterial | 326,909,741 | 29.67% | 459,299,602 | 33.14% | -3.47% | |
| Wages | 48,585,743 | 4.41% | 56,725,667 | 4.09% | 0.32% | |
| Manufacturingexpenses | 185,657,867 | 16.85% | 166,276,568 | 12.00% | 4.85% | |
| Brandy | Blendingliquor | 190,756,512 | 52.20% | 230,056,797 | 52.66% | -0.46% |
| Packingmaterial | 130,663,148 | 35.76% | 167,488,596 | 38.34% | -2.58% | |
| Wages | 8,383,641 | 2.29% | 8,881,752 | 2.03% | 0.26% | |
| Manufacturingcost | 35,597,765 | 9.75% | 30,467,170 | 6.97% | 2.78% | |
ExplanationNo
⑥Whethertherearechangesofconsolidationscopeduringthereportperiod?Yes□No
Duringthereportperiod,theCompanyacquiredtotalequityofYantaiChangyuCulturalTourismDevelopmentCo.,Ltd.,makingthiscompanyanditssubsidiariesallincludedinthescopeofconsolidation.⑦MajorchangesoradjustmentsoftheCompany’sbusinesses,productsorserviceduringthereportperiod
□Available?Notavailable
⑧InformationofmajorsalescustomersandmajorsuppliersTheCompany’smajorsalescustomers
Thetotalsalesamountofthetopfivecustomers（CNY）
| Thetotalsalesamountofthetopfivecustomers（CNY） | 216,875,333 |
| Theproportionthattotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 6.39% |
| Theproportionthatsalesamountoftherelatedpartyinthetotalsalesamountofthetopfivecustomersaccountingfortheannualtotalsalesamount（%） | 0% |
InformationoftheCompany’s5biggestsalescustomers
| No. | Customername | Salesamount（CNY） | Proportionintotalsalesfortheyear（%） |
| 1 | ChongqingRuiqiTradingCompanyLimited | 74,471,800 | 2.19% |
| 2 | ShenzhenChangyuexinTradingCompanyLimited | 52,209,663 | 1.54% |
| 3 | FoshanYukunInformationTechnologyCo.,Ltd. | 33,060,683 | 0.98% |
| 4 | YantaiZhongzhiLiquorCo.,Ltd. | 31,280,422 | 0.92% |
| 5 | AnhuiYuanshuiBeverageCo.,Ltd. | 25,852,765 | 0.76% |
| Total | -- | 216,875,333 | 6.39% |
Othersituationexplanationsofmajorcustomers
□Available?NotavailableInformationontheCompany’smainsuppliers
| Thetotalpurchaseamountofthetop5suppliers | 299,908,229 |
| Theproportionofthetotalpurchaseamountofthetop5suppliersintheannualpurchaseamount | 25.57% |
| Theproportionoftherelatedpartypurchaseamountinthetop5supplierpurchaseamountinannualpurchaseamount | 6.70% |
InformationontheCompany’stop5biggestsuppliers
| No. | Suppliername | Purchaseamount(CNY) | Proportionintotalpurchasefortheyear（%） |
| 1 | QixiaChangyuGlassCo.,Ltd. | 89,357,148 | 7.62% |
| 2 | YantaiShenmaPackagingCo.,Ltd. | 78,520,694 | 6.70% |
| 3 | XinjiangTianyuWineryCo.,Ltd.FangcaohuBranch | 53,055,626 | 4.52% |
| 4 | XinjiangYuyuanLiquorCo.,Ltd. | 43,623,785 | 3.72% |
| 5 | SeppeltsfieldWinesPtyLtdinAustralia | 35,350,976 | 3.02% |
| Total | -- | 299,908,229 | 25.57% |
Othersituationexplanationsofmainsuppliers
□Available?Notavailable
(3)Expense
Unit:CNY
| 2020 | 2019 | Year-on-yearincreaseordecrease(%) | Explanationofsignificantchanges | |
| Salesexpense | 788,252,485 | 1,088,305,385 | -27.57% | Mainlybecauseofreducedmarketingactivitiesaffectedbytheepidemic |
| Managementexpense | 290,646,466 | 311,904,656 | -6.82% | Mainlybecauseofdecreaseintheexpenditureofwageforadministrativestaff |
| Financialexpense | 20,441,713 | 35,302,229 | -42.10% | Mainlybecauseofincreaseininterestincomeanddecreaseininterestexpense |
| ResearchandDevelopmentexpense | 4,531,418 | 6,041,116 | -24.99% | Mainlybecauseofdecreaseinresearchinput |
(4)Researchanddevelopmentinvestment□Available?Notavailable
(5)Cashflow
Unit:CNY
| Item | 2020 | 2019 | Year-on-yearincreaseordecrease(%) |
| Subtotalofcashinflowinoperatingactivities | 3,385,896,941 | 4,836,275,324 | -29.99% |
| Subtotalofcashoutflowinoperatingactivities | 2,880,750,268 | 3,987,422,964 | -27.75% |
| Netamountofcashflowgeneratedinoperatingactivities | 505,146,673 | 848,852,360 | -40.49% |
| Subtotalofcashinflowininvestmentactivities | 186,578,214 | 242,776,300 | -23.15% |
| Subtotalofcashoutflowininvestmentactivities | 328,946,684 | 451,252,061 | -27.10% |
| Netamountofcashflowgeneratedininvestment | -142,368,470 | -208,475,761 | 31.71% |
activities
| activities | |||
| Subtotalofcashinflowincapital-raisingactivities | 987,668,379 | 942,134,032 | 4.83% |
| Subtotalofcashoutflowincapital-raisingactivities | 1,693,437,449 | 1,422,100,451 | 19.08% |
| Netamountofcashflowgeneratedincapital-raisingactivities | -705,769,070 | -479,966,419 | -47.05% |
| Netincreaseofcashandcashequivalents | -344,734,365 | 161,113,353 | -313.97% |
Explanationofmaininfluencefactorscontributingtogreatchangesinrelateddataonyear-on-yearbasis?Available□NotavailableComparedwiththesameperiodoflastyear,duringthereportperiod,thedecreasesinsubtotalofcashinflowinoperatingactivitiesandthenetamountofcashflowgeneratedinoperatingactivitiesweremainlyduetothereduceinsalesvolumeaffectedbytheepidemic;thedecreaseinthesubtotalofcashoutflowinoperatingactivitieswasmainlyduetothedecreaseinthepaymentoftaxesandfeesaswellasothercashrelatedtooperatingactivitiesincludingmarketingexpenses;thedecreaseinthesubtotalofcashinflowininvestmentactivitieswasmainlyduetothedecreaseincashreceivedfromrecoupinginvestment;thedecreaseinthesubtotalofcashoutflowininvestmentactivitiesandtheincreaseinthenetamountofcashflowgeneratedininvestmentactivitiesweremainlyduetothedecreaseincashexpenditureforpurchasingfixedassets;theincreaseinthesubtotalofcashoutflowincapital-raisingactivitiesandthedecreaseinthenetamountofcashflowgeneratedincapital-raisingactivitiesweremainlyduetotheincreaseincashpaidfordebtrepayment;thedecreaseinthenetincreaseofcashandcashequivalentswasmainlyduetothedecreaseinthereceivedcashowingtothereduceinsalesvolumeandtheincreaseinthecashpaidfordebtrepayment.ExplanationonthecausesofmajordifferencesbetweenthenetcashflowgeneratedbytheCompany’soperatingactivitiesandnetprofitofthisyearduringthereportperiod.□Available?Notavailable
3.Analysistonon-mainbusiness
□Available?Notavailable
4.Assetsandliabilities
(1)SignificantchangesofassetscompositionWhethertheCompanyimplementsnewrevenuestandardornewleasestandardforthefirsttimesince2020andadjustsrelateditemsinthefinancialstatementatthebeginningoftheexecutionyear?Available□Notavailable
Unit:CNY
Attheendof2020
| Attheendof2020 | Atthebeginningof2020 | Proportionincreaseordecrease(%) | Explanationonsignificantchanges | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Monetaryfunds | 1,194,214,929 | 9.11% | 1,597,410,775 | 11.60% | -2.49% | - |
| Receivables | 183,853,362 | 1.40% | 265,730,156 | 1.93% | -0.53% | - |
| Inventory | 2,945,548,651 | 22.48% | 2,901,651,555 | 21.08% | 1.40% | - |
| Investmentrealestate | 27,057,730 | 0.21% | 29,714,586 | 0.22% | -0.01% | - |
| Long-termequityinvestments | 48,263,507 | 0.37% | 43,981,130 | 0.32% | 0.05% | - |
| Fixedassets | 5,724,935,846 | 43.69% | 5,943,969,099 | 43.18% | 0.51% | - |
| Constructioninprogress | 635,495,152 | 4.85% | 567,478,833 | 4.12% | 0.73% | - |
| Short-termborrowings | 689,090,715 | 5.26% | 754,313,744 | 5.48% | -0.22% | - |
| Long-termborrowings | 200,352,968 | 1.53% | 128,892,501 | 0.94% | 0.59% | - |
(2)Assetsandliabilitiesmeasuredatfairvalue□Available?Notavailable
(3)LimitationsofassetsrightsuptotheendofthereportperiodAttheendofreportperiod,theCompanyhasnoassetssealedup,detainedorfrozen.Forinformationaboutassetsmortgageandpledge,pleaserefertoAnnouncementonExternalGuaranteeandAnnouncementonGuaranteeprovidedbySpanishAtrioCompanyforBankLoandisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn/)in2016,2017,2018,2019and2020.
5.Investmentcondition
(1)Overallsituation?Available□Notavailable
| Investmentamountduringthereportperiod(CNY) | Investmentamountofthesameperiodoflastyear(CNY) | Variation |
| 305,280,700 | 399,750,000 | -23.63% |
(2)Casesofacquiredsignificantequityinvestmentsduringthereportperiod?Available□Notavailable
Unit:CNY
Investedcompanyname
| Investedcompanyname | Mainbusiness | Investmentmode | Investmentamount | Shareholdingratio | Capitalsource | Partner | Investmenthorizon | Producttype | Progressuptobalancesheetdate | Estimatedearnings | Investmentprofitorlossduringthereportperiod | Whetherinvolvedinlitigation | Disclosuredate(ifhave) | Disclosureindex(ifhave) |
| YantaiSantaiRealEstateDevelopmentCo.,Ltd. | Realestatedevelopment,operatingmanagementandpropertymanagement | newlyestablished | 3,500,000 | 35% | Self-owned | ShandongGreentownRealEstateInvestmentCo.,LtdandChinaContinentsandOceansConstructionCo.,Ltd. | -- | healthregimen | Inthepreparatorystage | -- | -- | No | October24th,2020 | PleaserefertoAnnouncementonEstablishmentofJointVentureCompanywith“ShandongGreentown”andotherCompany(AnnouncementNo.:2020-Temporary40)disclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO(http://www.cninfo.com.cn) |
| Total | -- | -- | 3,500,000 | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- |
(3)Casesofsignificantongoingnon-equityinvestmentsduringthereportperiod?Available□Notavailable
Unit:CNY
Projectname
| Projectname | Investmentmode | Whetherbelongstofixedassetsinvestment | Involvedsectorsofinvestmentprojects | Investmentamountduringthereportperiod | Accumulatedactualinvestmentamountuptotheendofthereportperiod | Capitalsource | Projectprogress | Estimatedearnings | Accumulatedrealizedearningsuptotheendofthereportperiod | Reasonsforunreachedplanningscheduleandestimatedearnings | Disclosuredate(ifhave) | Disclosureindex(ifhave) |
| YantaiChangyuInternationalWineCityBlendingandCoolingCenter | Self-constructed | Yes | Liquorandalcoholicbeveragesector | 0 | 1,626,294,100 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | PleaserefertoResolutionAnnouncementofSeventhSessionBoardofDirectors4thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors8thMeeting,ResolutionAnnouncementofSeventhSessionBoardofDirectors10thMeetingandResolutionAnnouncementofEighthSessionBoardofDirectors4thMeetingdisclosedonChinaSecuritiesJournal,SecuritiesTimesandCNINFO |
| YantaiChangyuInternationalWineCityBottlingCenter | Self-constructed | Yes | 70,000,000 | 1,074,200,000 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | ||
| YantaiChangyuInternationalWineCityLogisticsCenter | Self-constructed | Yes | 0 | 462,677,200 | Ownedfund | 100% | 0 | 0 | — | 2017.04.22 | ||
| ChangyuVineandWineResearchInstitute | Self-constructed | Yes | 30,000,000 | 152,974,800 | Ownedfund | 95% | 0 | 0 | — | 2017.04.22 | ||
| TreasureWine | Self-con | Yes | 82,500,000 | 211,320,000 | Owned | 90% | 0 | 0 | — | 2017.04.22 |
(http://www.cninfo.com.cn/)
| Chateau | structed | fund | (http://www.cninfo.com.cn/) | |||||||||
| KoyaBrandyChateau | Self-constructed | Yes | 59,766,500 | 207,095,500 | Ownedfund | 95% | 0 | 0 | — | 2017.04.22 | ||
| Oakbarrelprocurementproject | Self-constructed | Yes | 57,334,200 | 101,584,200 | Ownedfund | 100% | 0 | 0 | — | 2020.04.24 | ||
| Constructionprojectofsupplierrelationshipmanagementplatformandplantmaintenanceplatform | Self-constructed | Yes | 2,180,000 | 2,180,000 | Ownedfund | 100% | 0 | 0 | — | 2020.04.24 | ||
| Total | -- | -- | -- | 301,780,700 | 3,838,325,800 | -- | -- | 0 | 0 | -- | -- | -- |
(4)Financialassetsinvestment
①Securityinvestmentsituation
□Available?NotavailableTherearenosecurityinvestmentsfortheCompanyduringthereportperiod.②Derivativesinvestment
□Available?NotavailableTherearenoderivativesinvestmentsfortheCompanyduringthereportperiod.
YantaiChangyuPioneerWineCo.Ltd.2020AnnualReport
(5)Theusagesituationofraisedcapital
□Available?NotavailableTherearenousagesituationsofraisedcapitalfortheCompanyduringthereportperiod.
6.Saleofsignificantassetsandequities
(1)Saleofsignificantassets
□Available?NotavailableTheCompanydidnotsellsignificantassetsduringthereportperiod.
(2)Saleofsignificantequities□Available?Notavailable
7.Analysisofmainholdingandjointstockcompanies?Available□NotavailableSituationofmainsubsidiariesandjointstockcompaniesaffectingover10%oftheCompany’snetprofit
Unit:CNY
Companyname
| Companyname | Companytype | Mainbusiness | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| YantaiChangyuPioneerWineSalesCo.,Ltd. | Subsidiary | Sales | CNY8million | 1,068,440,778 | 45,840,710 | 2,150,853,496 | 299,230,186 | 263,138,669 |
| YantaiChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY5million | 489,251,819 | 469,026,944 | 820,109,246 | 120,806,279 | 90,556,183 |
| ChangyuTradingCo.,Ltd.inDevelopmentZoneofYantai | Subsidiary | Sales | CNY5million | 129,427,513 | 19,490,622 | 196,564,868 | 59,380,545 | 44,558,165 |
| LaizhouChangyuWineSalesCo.,Ltd. | Subsidiary | Sales | CNY1million | 48,349,877 | 1,000,000 | 142,475,946 | 76,291,369 | 57,219,537 |
Acquisitionanddisposalofsubsidiariesduringthereportperiod
□Available?NotavailableExplanationonmainholdingandjointstockcompaniesNo
YantaiChangyuPioneerWineCo.Ltd.2020AnnualReport
8.SituationofthestructuredsubjectscontrolledbytheCompany
□Available?Notavailable
9.ExpectationfortheCompany’sfuturedevelopmentOnthebasisofourlimitedexperienceandprofessionalskills,theCompanymakesthefollowingjudgmentsonthewineindustryandfuturedevelopment:
(1)ThesectorcompetitionpatternanddevelopmenttrendAffectedbytheincreaseintheuncertaintycausedbytheslowdownofnationalmacroscopiceconomygrowthandotherfactors,theoveralldemandofChinesewinemarketin2021willbestillcomparativelyweakandthewineindustry’soperatingsituationwillbestillsevere.Atpresent,thewineconsuminggroupinourcountryissmallandscattered,thefamilyconsumptionisstillinitsinfancy,the“fragmentization”phenomenonofwinemarketisserious,andthereareveryfewloyalconsumerswhocanbuywinescontinuously.WiththeriseofChinesee-commerceandInternetgeneration,thesceneandhabitsofpeople’sconsumptioninwinecontinuetochange.Themobileterminalmediahasbecomeanimportantchannelforwineoperatorstocommunicatewithconsumers.Itismoredifficulttotargetwineconsumers.Whethercomparedwiththepercapitaconsumptionofdomesticbeerandliquor,orcomparedwiththepercapitawineconsumptionofmajorforeignwineconsumingcountries,theconsumptionpopularizingrateandpenetrationrateofChinesewineindomesticareverylow.Althoughtherearesometwistsandturnsduringitsdevelopmentperiodintheshortterm,seenfromthelongterm,thehugedevelopmentpotentialofwinehasnotchanged.China’swinemarketislikelytoshowafavorabledevelopmenttrend,especiallyunderthebackgroundofthecountry’semphasison“acceleratingtheformationofanewdevelopmentpatternthatfocusesonthedomesticlarge-scalecycleandconductsmutualpromotionbetweenthedomesticandinternationalcycles”andvigorousadvocationinsavingfoodandopposingfoodwaste.Insuchacaseoflong-termcoexistenceofopportunitiesandchallenges,thoseenterprisesthatpossessstrongbrandinfluenceandmarketingability,catchtheopportunities,activelytakeadjustments,makefulluseofnewlyemergingandtraditionalsaleschannels,makeeffortstoguideandcultivatewineconsuminggroups,timelysatisfytheconsumers’demandsandprovideproductswithhighcostperformancewillhavetheopportunitytobethefinalwinnerofcompetitions,andthenformanewpatternofthefutureChinesewinemarket.
(2)TheCompany’sdevelopmentstrategyTheCompanywilladheretothedevelopmentstrategyof“Focusonmiddle-and-highlevel,Focusonhighquality,Focusonbigproduct”andthemarketingphilosophyof“obtaininggrowthfromtheterminalandnurturingconsumers”,continueimprovingtherelativelyindependentsystemconstructionofwine,brandy,importedwineandoverseasbusiness,enhancewine,scaleupbrandy,improveimportedwine,stabilizeoverseasbusinessandpromotetheall-rounddevelopmentofvariousalcoholproducts.
(3)ManagementplanforthenewyearIn2021,theCompanywilltryitsbesttorealizeoperatingrevenueofnotlessthanCNY3.8billionandcontrolthemainoperatingcostsandthreeperiodexpensesbelowCNY3.1billion.
YantaiChangyuPioneerWineCo.Ltd.2020AnnualReport
(4)MeasurestobetakenbytheCompanyIn2021,theCompanywillbebasedonthenewdevelopmentstage,implementthenewdevelopmentconcept,makescientificresponse,activelyseekchange,adheretoreformandinnovation,takeprofitassessmentasthepointcut,andfullyimplementthe“ThreeFocuses”strategy.TheCompanywillmakeeveryefforttodofollowingmajorworkin2021inordertostrivetoachieveannualbusinesstarget.Thefirstistocontinuestrengtheningthesalessystemforthethreetypesofalcoholproductsandvigorouslyimplementingthe“ThreeFocuses”strategy.Regardingdomesticwine,theCompanywillpromotethegradualchangesintheorganizationalstructureofdomesticwinesandrespectivelysetupfull-timemarketingsystemsforMoserandRenaCastlechateauwine;underthepremiseofensuringthattheinvestmentdoesnotexceedthebudget,changethepreviousdispersiveeffort,integratemoreinvestment,strengthenpublicitytotargetconsumers,andfurtherfocusonstrategicbrands;respectivelyselectkeyareasacrossthecountryforMoserandNobleDragon,formulateandimplementheadquarters-ledmarketingplans,andconcentratetheirsuperior“strength”and“financialresources”tostart“WarofAnnihilation”;sortoutthebrandtreeandfocusonproductitemstomakethestrategicpositioningofeachbrandclearer;collectspecificdepositsandstrictlycarryoutpricecontrol,controloffleeinggoods,andinvestmentmanagementinpricedifference.Regardingdomesticbrandy,theCompanywillfocusonKoyabrandtobuildKoyaasastrategicbrandandbuildKoya’s15-yearXOtobethecorebrandyproduct;integratemostinvestmentresourcesofbrandyvarietytoaccuratelyfocusonhigh-endtargetconsumers,andcarryoutmarketingactivitiessuchaslarge-scalepublicrelationsactivitiesofKoyabrand,large-scaleproductpromotionroadshow,tastingactivitiesandKoyachateautourismexperienceetc;focusonkeycitieswithrelativelydevelopedeconomies,largemarketdevelopmentpotentialsandcertainbrandyconsumptionbasesthroughoutthecountry,andinvestresourcestoconductthe“WarofAnnihilation”ofKoyabrandandachievethefirstbreakthroughinkeycitiesandthentodrivethedevelopmentofothercities;continuetoextendtheproductprofileofKoyabrandupwards,developKoya30-yearXO,Koya1915commemorativebrandy(50-year-old),Changyu’s130
th
anniversarycommemorativebrandy,newpersonalizedproductsincooperationwithbigenterprisesetc,tellgoodproductstoriesincombinationwithtraditionalChineseculturalelements,andcontinuetoimproveKoya’sbrandpositioning,imageandinfluence;collectspecificdepositsandstrengthenthemanagementintheprice,fleeinggoods,productidentificationandanti-counterfeitingofmiddle-to-high-endproductstoescortthehealthydevelopment.Regardingimportedwine,theCompanywillfurtherfocusonkeymarkets,keybrandsandkeycustomersandcontinuebuildingKilikanoonandIWCCaskeybrands;adheretothebackbonedistributorsystemconstructionof“oneplace,onedistributor”,andfocusontheestablishmentofrelativelyindependentsalessystem“jointventuresplusbigenterprises”;furtherconcentratehuman,financialandmaterialinputstokeymarketsandtargetconsumers..Thesecondistounconventionallypromotedigitaltransformation.TheCompanywillfirmlygraspthetrendofdigitaldevelopment,makegreateffortstointensifypromotionandstrivetoachieveextraordinarydevelopmentthroughre-innovation;integratesocialresources,vigorouslypromotethecooperationinJDandT-mallbusinesswithbigenterprises,strengthencooperationwithmajor
YantaiChangyuPioneerWineCo.Ltd.2020AnnualReport
onlineenterprisesonproductsofindividualbrand,anddeveloponlinedistributorsforindependentbrand.Thethirdistofurtherstrengthenthebrandmanagersystemandbrandwinemakersystem.Throughfurtherstrengtheninganditeration,itwouldbetterreflectthemainresponsibilityofthebrandmanagerforbrandoperationandthemainresponsibilityofthechiefbrandwinemakerforproductquality.TheCompanywillcontinuetointensifytherightsandresponsibilitiesofeachsystem,strengthendynamicevaluationandimprovethelevelofbrandoperationandproductquality.Thefourthistostrengthentheconstructionoftalentteamandstimulatethevitalityoftheteam.TheCompanywillcombineinternaltrainingwithsocialrecruitment,combinetrainingandself-improvement,activelypromotetheyouthtalentplan,establishatalentreservemechanismforkeypositionsinsales,production,winemakingandmanagement,andpromotetheconstructionoftalentteamstobetteradapttofuturedevelopmentneeds.TheCompanywillalsoimproveandoptimizeperformanceappraisalmethodstoincreasetheenthusiasmandinitiativeofallemployees.Thefifthistopromotethefinalshiftfromplannedordertodistributor-drivenordertomakeproductionunitsfocusonensuringproductionsafety,qualitysafetyandorderfulfillmentratesaswellasimprovingproductquality,andtofurtherreduceinventoryandslow-movingrisksoffinishedproduct.Thesixthistoimproveandoptimizeoperationoftourismbusinessandactivateresourcesofvariouschateauxandtheindustrialpark,soastoincreaseconsumersatisfactionwithtourismbusinesstoanewlevelandgivemorepositiveenergytothebrands.Theseventhistoemancipatethemindanddevelopnewmodelsforrapiddevelopment.TheCompanywillcontinuetopromotethedevelopmentoffiveinnovationgroupsincludingVermouth,sparklingwine,low-alcoholandnon-alcoholwine,fruitjuicewineandport;innovativelylaunchmembership-baseddirectsalesmodelforsuperhigh-endbrands,suchasTinlot,Century-oldCellar,30-yearKoyaand50-yearKoyaandsoon;continuetointegratesocialresourcesandtakeoutsomeindependentbrandsthattheCompanydoesnothavetheenergytodeveloptocooperatewithnationalenterprisesfordevelopmentthroughestablishingjointventures.
(5)Potentialrisks
①RiskinpricefluctuationofrawmaterialsGrapesaretheCompany’smainrawmaterials.Thegrape’syieldandqualityareaffectedtoacertainextentbythenaturalfactorssuchasdrought,wind,rain,frostandsnow.TheseforcemajeurefactorsgreatlyinfluencethequantityandpriceofthegrapesinthisCompanyordersandaddtheuncertaintytotheCompany’sproductionandoperation.Therefore,theCompanywilllowertherisksthatarelikelytoaffectgrapequalityandresultinpricefluctuationbymeansofexpandingtheself-runvineyards,strengtheningthevineyardmanagementandoptimizingthelayoutofvineyards.②RiskinuncertaintyofmarketinputandoutputTocopewiththecutthroatmarketcompetitionandtomeettheneedsformarketdevelopment,theCompanyhasinputmoreandmorecapitalinthemarketandthesalesexpensehastakenupahigherpercentagepointinthebusinessrevenue.Theinput-outputratiowillaffecttheCompany’soperatingresultstoagreatextentandtheriskthatsomeinvestmentsmaynotreachtheexpectationsislikelytooccur.Therefore,theCompanywillstrengthenmarketresearchandanalysis,enhance
YantaiChangyuPioneerWineCo.Ltd.2020AnnualReport
marketforecastaccuracyandcontinuetoperfecttheinput-outputevaluationsystemtoensuretheinvestmentsinmarkettobesatisfactoryasexpected.
③RiskinproducttransportTheCompany’sproductsarefragileandsenttodifferentplacesallovertheworld,mostlybysea,railwayandexpressway.Thepeakseasonofsalesisusuallyincoldwinterandclosetothespringfestivalwhenmarkethasagreatdemand.Atthattime,thenaturalandhumanfactorssuchasseriousshortageoftransportcapacityresultingfrombusyflowofpeopleandgoods,wind,snow,freezingaswellastrafficaccidentsmakethetransportdepartmentsdifficulttosendproductstomarketsintimeandsafely.Asaresult,itmakesthisCompanyhavetofacetherisksofmissingthepeakseasonofsales.Therefore,theCompanywilladoptallmethodspossiblelikemakingprecisesalespredictionandwelldesignedconnectionofproductionandsales,reasonablyarrangingproductionandtransportmeansandmakinguseofmoreavailablewarehousesindifferentplacestolowerthesekindsofrisks.④RiskininvestmentfaultsTheCompanyinvestedmanyprojectsinthepreviousperiodsandtheinvestmentamountswererelativelylarge.Forindividualproject,owingtotheinfluenceofvariousfactors,itledtohavetherisksoffacingwiththeinvestmentamountoutofbudgetorhardlytakingbacktheexpectedinvestmentearnings.TheCompanywilltakeanadequateargumentandscientificdecision-makingforinvestmentprojects,tryhardtoreduceandavoidinvestmentrisks.⑤RiskinexchangerateTheCompany’soverseassubsidiariesexportproductstomanydifferentcountriesandtheexportamountisrelativelylarge.Theremaybeexchangelossesorgainsduetoexchangeratefluctuation.
⑥RiskinepidemicriskTheCompany’sproductsarecurrentlymainlyusedforpeople’sconsumptionatgatherings.Ifthechanceofgatheringdeclinesduetotheepidemic,itmayhaveagreaternegativeimpactontheCompany’sproductsales.
10.TheCompany’sreceptionsofresearch,communication,visitandotheractivities
(1)Activityregistrationformforreceptionsofresearch,communication,visitandotheractivitiesduringthereportperiod?Available□Notavailable
Receptiontime
| Receptiontime | Receptionpattern | Typeofreceptionobject | Receptionobject | Maindiscussedcontentsandprovideddata | Basicsituationindexofreception |
| December17th,2020 | TheCompany’smeetingroom | Fieldresearch | HftInvestmentManagement(HaixiaoLIU),OrientalAlphaFund(ZhenboSUN),QingdaoFourSeasonsInvestmentManagement(WeilinYAO,JunSHI), | ProductionandoperationoftheCompany | InvestorRelationsActivationRecordFormonDecember17th,2020publishedonthewebsiteofShenzhenStock |
YantaiChangyuPioneerWineCo.Ltd.2020AnnualReport
ChengYangInvestment(YangyangWANG),TongtaiAMC(YajunBIAN,JianpeiMAI),NorthStarAssetManagement(JunguoJIANG),LontengAssetsManagement(JinWANG),HaitongSecurities(HongweiWEN),HaitongINT’L(ShiweiHU),HuaizhenAssets(LeiCHEN)
| ChengYangInvestment(YangyangWANG),TongtaiAMC(YajunBIAN,JianpeiMAI),NorthStarAssetManagement(JunguoJIANG),LontengAssetsManagement(JinWANG),HaitongSecurities(HongweiWEN),HaitongINT’L(ShiweiHU),HuaizhenAssets(LeiCHEN) | Exchange | |||
| Timesofreception | 1 | |||
| Numberofinstitutionreception | 10 | |||
| Numberofindividualreception | 0 | |||
| Numberofotherobjectsreception | 0 | |||
| Whethertodisclose,revealandleakmaterialnonpublicinformation | No | |||
V.Majorissues
1.TheCompany’sordinaryshareprofitdistributionandincreasingequitywithcapitalreserveOrdinaryshareprofitdistributionpoliciesespeciallypromulgation,implementationoradjustmentofcashdividendspoliciesduringthereportperiod?Available□NotavailableDeliberatedandpassedbythe2019Shareholders’MeetingconvenedonMay27
th,2020bytheCompany,theCompany’s2019annualprofitdistributionschemeisshownasfollows:
basedontotal685,464,000shares(including453,460,800Asharesand232,003,200Bshares)uptoDecember31
st
,2019,theCompanywouldpaycashdividendtoallshareholdersregisteredontheshareregistrationday:CNY7（includingtax）incashpertenshares.ThistimetheCompanywouldneitherdispatchbonussharesnorincreaseequitywithcapitalreserve.Totalamountofshareshasnotchangedsincethedisclosureofthedistributionplantotheimplementationperiod.OnJuly3
rd
,2020,theCompanypublishedtheImplementationAnnouncementof2019AnnualEquityDistributiononChinaSecuritiesJournal,SecuritiesTimesandwww.cninfo.com.cn,determiningthattheshareregistrationdayandtheex-dividenddayofASharewasrespectivelyonJuly9
th
,2020andonJuly10
th
,2020;thelasttradingday,theex-dividenddayandtheshareregistrationdayofBSharewasrespectivelyonJuly9
th,2020,onJuly10
th
,2020andonJuly14
th
,2020.ThistimethedispatchingobjectscontainallAShareshareholdersregisteredatChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenCompany(hereinafterreferredtoasCSDCShenzhenCompany)afterclosingofShenzhenStockExchangeintheafternoonofJuly9
th
,2020andallBShareshareholdersregisteredatCSDCShenzhenCompanyafterclosingofShenzhenStockExchangeintheafternoonofJuly14
th
,2020(thelasttradingdayisJuly9
th
,2020).Thisdispatchinghasalreadybeencompletedinmid-July2020.Theprofitdistributionschemeimplementedthistimeisconsistentwiththeschemedeliberatedandpassedbytheshareholders’meeting.Theimplementationoftheprofitdistributionschemeforthistimeisnotmorethantwomonthsaftertheshareholders'meetingpassingit.
Specialexplanationforthecashdividendspolicy
| Specialexplanationforthecashdividendspolicy | |
| WhetheritisinaccordancewiththerequirementsoftheregulationintheArticlesofAssociationandtheresolutionofshareholders’meeting | Yes |
| Whetherthedistributionstandardandproportionisclearanddefinite | Yes |
| Whethertherelevantdecisionprocessandmechanismiscomplete | Yes |
| Whethertheindependentdirectorsperformtheirresponsibilitiesandplaytheroles | Yes |
| Whetherthesmallandmiddleshareholdershavethechancetoexpresstheiropinionsandappeals,aswellastheirlawfulrightandinterestisinanenoughprotection | Yes |
| Whetheritislegalandtransparentfortheconditionandprocesswhileadjustingandamendingthecashdividendspolicy | Yes |
TheCompany’sscheme(preliminaryscheme)ofordinaryshareprofitdistributionandincreasingequitywithcapitalreserveintherecentthreeyears(includingthereportperiod)TheCompany’sprofitdistributionschemein2018wasasfollowing:Becausethebalanceoflegalearnedsurplusreservereached50%oftheregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewouldnotbedrawn.BasedontheCompany’s685,464,000sharesattotaluptoDecember31
st
,2018,theCompanyplanedtopayCNY6(includingtax)incashasdividendsforeverytensharestotheCompany’sallshareholders,totalinguptoCNY411,278,400,accountingfor39.45%ofthenetprofitCNY1,042,632,929attributabletotheshareholdersoftheparentcompanyintheconsolidatedstatement,theretainedandundistributedprofitwillbereservedforthedistributionofnextyear.TheCompany’sprofitdistributionschemein2019wasasfollowing:Becausethebalanceoflegalearnedsurplusreservereached50%ofregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewouldnotbedrawn.BasedontheCompany’s685,464,000sharesattotaluptoDecember31
st
,2019,theCompanyplanedtopayCNY7(includingtax)incashasdividendsforeverytensharetotheCompany’sallshareholders,totalinguptoCNY479,824,800accountedfor42.04%ofnetprofitsCNY1,141,367,296attributabletoshareholdersofparentcompanyintheconsolidatedstatements.Theretainedandundistributedprofitwillbereservedfordistributioninthenextyear.TheCompany’sprofitdistributiondraftschemein2020isasfollowing:Becausethebalanceoflegalearnedsurplusreservereaches50%ofregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewillnotbedrawn.BasedontheCompany’s685,464,000sharesattotaluptoDecember31
st
,2020,theCompanyplanstopayCNY4(includingtax)incashasdividendsforeverytensharetotheCompany’sallshareholders,totalinguptoCNY274,185,600accountedfor64.19%ofnetprofitsCNY427,160,774attributabletoshareholdersofparentcompanyintheconsolidatedstatements.Theretainedandundistributedprofitwillbereservedfordistributioninthenextyear.TheCompany’sordinarysharecashdividendrecordinrecentthreeyears(includingthereportperiod)
Unit:CNY
Yearofdistribution
| Yearofdistribution | Amountofcashdividend(includingtax) | Netprofitbelongingtothelistedcompany’sshareholdersintheconsolidatedstatementofthedistributionyear | Proportioninthenetprofitbelongingtothelistedcompany’sshareholdersintheconsolidatedstatement(%) | Amountofcashdividends(eg.sharesbuy-back)inotherways | Proportionofcashdividendsinotherways | Amountofcashdividend(includingotherways) | Proportion(includingotherways)inthenetprofitbelongingtothelistedcompany’sshareholdersintheconsolidatedstatement(%) |
| 2020 | 274,185,600 | 470,860,587 | 58.23% | 0 | 0% | 274,185,600 | 58.23% |
| 2019 | 479,824,800 | 1,141,367,296 | 42.04% | 0 | 0% | 479,824,800 | 42.04% |
| 2018 | 411,278,400 | 1,042,632,929 | 39.45% | 0 | 0% | 411,278,400 | 39.45% |
Duringthereportperiod,theCompanyearnedprofit,theprofitoftheparentcompanythatcouldbedistributedtoordinaryshareshareholderswaspositivebutwithoutproposingordinarysharecashdividenddistributionpreliminaryscheme.
□Available?Notavailable
2.TheCompany’spreliminaryschemeofprofitdistributionandpreliminaryschemeofincreasingequitywithcapitalreserveforthereportperiod?Available□Notavailable
Numberofsendingbonussharespertenshares(share)
| Numberofsendingbonussharespertenshares(share) | 0 | ||||
| Numberofdividendpayoutpertenshares(CNY)(includingtax) | 4 | ||||
| Thecardinalnumberofthecapitalstocksforthepreliminarydistributionscheme(share) | 685,464,000 | ||||
| Totalcashdividenddistribution（CNY）(includingtax) | 274,185,600 | ||||
| Amountofcashdividends(eg.sharesbuy-back)（CNY）inotherways | 0 | ||||
| Totalcashdividenddistribution（CNY）(includingotherways) | 274,185,600 | ||||
| Attributableprofit（CNY） | 470,860,587 | ||||
| Theproportionofcashdividenddistributioninthetotalprofitdistribution(includingotherways) | 100 | ||||
| Cashdividenddistributionthistime | |||||
| IftheCompany’sdevelopmentisingrowthstageandmajorcapitalexpenditureisarranged,whilemakingprofitdistribution,theproportionofcashdividendsshouldtakesupnolessthan20%inthisprofitdistribution. | |||||
| Detailedexplanationforthepreliminaryschemeofprofitdistributionorincreasingequitywithcapitalreserve | |||||
| Accordingtoregulationof157thitemintheArticlesofAssociation,whichisthat“theCompanycandistributedividendseitherincashorbystock,theprofittobedistributedeachyearisnotlessthan25%ofthedistributableprofitrealizedinthesameyearandtheaccumulatedsumofprofittobedistributedincashinthelastthreeyearsisnotlessthan30%oftheyearlyaveragedistributableprofittoberealizedinthelastthreeyears”.Meanwhile,consideringthelargeamountonthecapitalexpenditurein2021,undertheconditionofnot | |||||
influencingthenormalproductionandoperation,theCompanyputforwardpreliminaryschemeonprofitdistributionin2020asfollowing:
Becausetheleftamountoflegalearnedsurplusreservereaches50%ofregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewillnotbedrawn.BasedontheCompany’s685,464,000sharesattotaluptoDecember31
st,2020,theCompanyplanstopayCNY4incashasdividendsforeverytenshare(includingtax)totheCompany’sallshareholders,totalinguptoCNY274,185,600accountedfor64.19%ofnetprofitsCNY427,160,774attributabletoshareholdersofparentcompanyintheconsolidatedstatements.Theretainedandundistributedprofitwillbereservedfordistributioninthenextyear.Thecashdividenddistributedtoshareholdersofdomesticlistedforeignshares(Bshare)ispaidinHKDconvertedbasedonthemiddleratebetweenCNYandHKDissuedbythePeople’sBankofChinaonthefirstworkingdayaftertheresolutiondateof2020shareholders’meeting.
3.Implementationofcommitments
(1)CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirersandtheCompanyandotherrelatedcommitmentpartieshaveimplementedduringthereportperiodandhavenotimplementeduptotheendofthereportperiod?Available□Notavailable
influencingthenormalproductionandoperation,theCompanyputforwardpreliminaryschemeonprofitdistributionin2020asfollowing:
Becausetheleftamountoflegalearnedsurplusreservereaches50%ofregisteredcapital,whilemakingprofitdistribution,thelegalearnedsurplusreservewillnotbedrawn.BasedontheCompany’s685,464,000sharesattotaluptoDecember31
st,2020,theCompanyplanstopayCNY4incashasdividendsforeverytenshare(includingtax)totheCompany’sallshareholders,totalinguptoCNY274,185,600accountedfor64.19%ofnetprofitsCNY427,160,774attributabletoshareholdersofparentcompanyintheconsolidatedstatements.Theretainedandundistributedprofitwillbereservedfordistributioninthenextyear.Thecashdividenddistributedtoshareholdersofdomesticlistedforeignshares(Bshare)ispaidinHKDconvertedbasedonthemiddleratebetweenCNYandHKDissuedbythePeople’sBankofChinaonthefirstworkingdayaftertheresolutiondateof2020shareholders’meeting.Commitments
| Commitments | Commitmentparty | Commitmenttype | Commitmentcontent | Commitmenttime | Commitmentperiod | Implementation |
| Commitmentsatsharereform | ||||||
| Commitmentsmadeinacquisitionreportorequitychangesreport | ||||||
| Commitmentsatassetrestructuring | － | － | － | － | ||
| Commitmentsattheinitialpublicofferingor | YantaiChangyuGroupCo.,Ltd. | Solvehorizontalcompetition | Non-horizontalcompetition | May18th,1997 | Forever | Hasbeenperforming |
| YantaiChangyuGroupCo.,Ltd. | Cleartheuseoftrademarkroyalty | AccordingtoTrademarkLicenseContract,thetrademarkroyaltyofChangyuandothertrademarkspaidbytheCompany | May18th,1997 | FromMay18th,1997toApril4th,2019 | AccordingtoTrademarkLicenseContract,thetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicize |
refinancing
| refinancing | toYantaiChangyuGroupCo.,Ltd.everyyearismainlyusedforadvertisingChangyuandothertrademarksandthiscontractproductsbyYantaiChangyuGroupCo.,Ltd. | trademarksincludingChangyuandcontractproducts.Except2013to2017duringwhichthecommitmentwasnotstrictlyperformed,YantaiChangyuGroupCo.,Ltd.hasbeenperformingitscommitment. | ||||
| Equityincentivecommitments | ||||||
| CommitmentsatmiddleandsmallshareholdersoftheCompany | YantaiChangyuGroupCo.,Ltd. | Compensatingunredeemedcommitment | TheCNY231,768,615thatwasnotusedforpublicityoftrademarksandcontractproductsaspromisedwillbeoffsetbythefour-yeartrademarkusefeefrom2019to2022.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence. | April4th,2019 | FromApril4th,2019toDecember31st,2023 | Hasbeenperforming |
| Commitmentundertimelyimplementationor | Yes | |||||
not
| not | |
| Whetherornottohavespecificreasonsoftheunimplementedcommitmentandnextsteps | AccordingtotheTrademarkLicenseContract(hereafterreferredtoas“theContract”),ChangyuGrouppromisesthatthetrademarkusefeeannuallypaidbytheCompanytoChangyuGroupshallbemainlyusedbyChangyuGrouptopublicizetrademarksandcontractproducts.Butabove-mentioned‘mainly’isnotaspecificnumber,whichiseasytocausedivergenceduetodifferentunderstandingandleadstoproblemappearanceduringtheimplementationprocess.From2013to2017,ChangyuGroupcollectedatotalofCNY420,883,902trademarkusefee,ofwhich51%wasusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY214,650,790.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY50,025,181,withabalanceofCNY164,625,609.In2018and2019,thetrademarkusefeecollectedof2017and2018isCNY155,623,907,ofwhich51%isusedtopublicizetrademarksincludingChangyuandcontractproductswithamountofCNY79,368,193.TheamounthasbeenusedtopublicizetrademarksincludingChangyuandcontractproductsisCNY12,225,187,withabalanceofCNY67,143,006.Since2013,theaccumulatedbalanceofChangyuGroupusingtopublicizetrademarksincludingChangyuandcontractproductsisCNY231,768,615.ChangyuGrouppromisesthatthefour-yeartrademarkusefeefrom2019to2022willbeusedforoffset.Ifinsufficient,theshortfallwouldbefilledinonetimein2023.Ifthereisanyexcess,theexcessportionofthetrademarkusefeewouldbecollectedfromtheyearwithexcessoccurrence.IfChangyuGroupisnotabletoimplementtheabove-mentionedcommitmentowingtovariousreasons,theCompanywilltimelysuperviseandurgeChangyuGrouptofulfillitscommitmentandrequestChangyuGrouptoraisefundsthroughbankloaning,assetssalesandequitysalesetc.inordertoimplementthecommitment.Fordetailedinformation,pleaserefertoAnnouncementonCommitmentIssuesofYantaiChangyuGroupCo.,Ltd.disclosedonApril4th,2019. |
(2)TheCompanyshouldmakeastatementontheachievedoriginalprofitforecastofassetsorprojectsanditsreasonifthereisprofitforecastofCompany’sassetsorprojectsandthereportperiodisstillintheprofitforecastperiod
□Available?Notavailable
4.Non-businesscapitaloccupyingoflistedcompanybycontrollingshareholderanditsrelatedparties
□Available?NotavailableTherearenonon-businesscapitalsoccupyingoflistedcompanybycontrollingshareholderanditsrelatedpartiesduringthereportperiod.
5.ExplanationofNon-standardAuditReportgivenbyaccountingfirminthereportperiodfromboardofdirectors,boardofsupervisorsandindependentdirectors(ifhave)□Available?Notavailable
6.Comparedwiththelastyear’sfinancialreport,explanationforthechangesofaccountingpolicy,accountingestimationandaccountingmethod?Available□Notavailable
OnJuly5
th,2017,theMinistryofFinanceissuedtheNoticeonAmendmentandIssuanceofAccountingStandardforBusinessEnterprisesNo.14-Revenue(Caikuai[2017]No.22),whichrequiredenterprisessimultaneouslylistingbothindomesticandoverseasandenterprisesthatlistedatabroadandadoptedInternationalFinancialReportingStandardsorEnterpriseAccountingStandardstopreparefinancialstatementsshallimplementthisnewaccountingpolicyfromJanuary1
st,2018;otherenterpriseslistingindomesticshallimplementthisnewaccountingpolicyfromJanuary1
st,2020;non-listedenterprisesimplementingenterpriseaccountingstandardsshallimplementthisnewaccountingpolicyfromJanuary1
st
,2021.Duetotherevisionofaboveaccountingstandards,thecompanyneedstoadjusttherelevantaccountingpoliciesoriginallyadoptedaccordingly.Accordingtoabove-mentionedregulationofrelevantstandardsandnoticeofMinistryofFinance,thiscompanywillimplementthenewrevenuestandardfromJanuary1
st,2020.ThischangeofaccountingpolicyiscarriedoutbytheCompanyinaccordancewiththerelevantregulationsandrequirementsissuedbytheMinistryofFinance.TheaccountingpolicyafterchangecouldobjectivelyandfairlyreflecttheCompany’sfinancialsituationandoperatingresults,incompliancewithrelevantlawsandregulationsandtheCompany’sactualsituation.ThischangeofaccountingpolicywillnothaveasignificantimpactontheCompany’sfinancialstatus,operatingresultsandcashflow,norwilltherebeanydamagetotheCompanyandshareholders’interests.
7.Thesituationexplanationforthecorrectionofmajoraccountingerrorswhichneedtoberetrospectandrestatedduringthereportperiod
□Available?NotavailableThereisnosituationforthecorrectionofmajoraccountingerrorswhichneedtoberetrospectandrestatedduringthereportperiod.
8.Comparedwiththelastyear’sfinancialreport,explanationforthechangesoftheconsolidatedstatementsscope?Available?NotavailableFordetailsofthethechangesoftheconsolidatedstatementsscopethisyear,pleaserefertoNote6:
“Changeinconsolidationscope”tothefinancialreportofthisreport.
9.TheappointmentanddismissalofcertifiedpublicaccountantsCurrentlyappointedaccountingfirm
Domesticaccountingfirmname
| Domesticaccountingfirmname | KPMGHuaZhenLLP |
| Remunerationfordomesticaccountingfirm(CNY‘0000) | 195 |
| Consecutiveperiodfortheauditserviceofdomesticaccountingfirm | 2 |
| Nameofcertifiedpublicaccountantfortheauditserviceofdomesticaccountingfirm | Ms.WangTing,Ms.ChaiJing |
| Consecutiveperiodforthecertifiedpublicaccountant’saudit | 2 |
serviceofdomesticaccountingfirm
| serviceofdomesticaccountingfirm | |
| Overseasaccountingfirmname(ifhave) | — |
| Remunerationforoverseasaccountingfirm(CNY‘0000)(ifhave) | 0 |
| Consecutiveperiodfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Nameofcertifiedpublicaccountantfortheauditserviceofoverseasaccountingfirm(ifhave) | — |
| Consecutiveperiodforthecertifiedpublicaccountant’sauditserviceofoverseasaccountingfirm(ifhave) | — |
Whetherornottoemployanewaccountingfirmduringthereportperiod?Yes?NoToemployinternalcontrolauditaccountingfirms,financialadviserorsponsor.?Available?Notavailable
10.Faceofsuspensionandterminationoflistingafterthedisclosureofannualreport?Available?Notavailable
11.Bankruptcyreorganization□Available?NotavailableThereisnobankruptcyreorganizationduringthereportperiod.
12.Materiallitigationandarbitration□Available?NotavailableTherearenomateriallitigationandarbitrationduringthereportperiod.
13.Penaltyandrectification?Available?NotavailableTherearenopenaltyandrectificationduringthereportperiod
14.CreditoftheCompany,holdingshareholdersandactualcontrollers□Available?Notavailable
15.ImplementationoftheCompany’sequityinventiveplan,employeestockownershipplanorotheremployeeincentivemeasures□Available?NotavailableTherearenoimplementationoftheCompany’sequityinventiveplan,employeestockownershipplanandotheremployeeincentivemeasuresduringthereportperiod.
16.Significantrelatedtransactions
(1)Relatedtransactionsinrelationtodailyoperations
?Available□Notavailable
Related
party
| Relatedparty | Relationship | Type | Content | Pricingprinciple | Price | Amount(CNY‘0000) | Proportionaccountingforamountofsimilartransactions | Approvedtransactionquota(CNY‘0000) | Whetherexceedapprovedtransactionquota | Clearingform | Availablemarketpriceofsimilartransactions | Disclosuredate | Disclosureindex |
| YantaiShenmaPackagingCo.,Ltd. | Controlledbythesameparentcompany | Purchaseandcommissionprocessing | Purchaseandcommissionprocessingpackingmaterials | Agreementpricing | Determinedbyagreement | 7,852 | 6.70% | 10,200 | No | Cash | No | April24th,2020 | Announcementon2020AnnualRoutineRelatedTransactiondisclosedinChinaSecuritiesJournal,SecuritiesTimesandCNINFOin2020 |
| Total | -- | -- | 7,852 | -- | 10,200 | -- | -- | -- | -- | -- | |||
| Detailsofthereturnoflargesales | No | ||||||||||||
| Actualperformanceoftheestimatedtotalamountfordailyoperationsrelatedtransactionsbycategorythatwilloccurduringthisperiod.(ifhave) | No | ||||||||||||
| Reasonforthedeferencebetweentransactionpriceandmarketreferenceprice(ifavailable) | Notavailable | ||||||||||||
(2)Relatedtransactionsinrelationtoacquisitionandsalesofassetsorequity?Available?NotavailableTherearenorelatedtransactionsinrelationtoacquisitionorsalesofassetsorequityduringthereportperiod.
(3)Relatedtransactionsinrelationtocommonforeigninvestment?Available?NotavailableTherearenorelatedtransactionsinrelationtocommonforeigninvestmentduringthereportperiod.
(4)Relatedcurrentcreditanddebttransactions?Available□NotavailableWhetherornotexistingnon-operatingrelatedcreditanddebttransactions
□Yes?NoTherearenonon-operatingrelatedcreditanddebttransactionsduringthereportperiod.
(5)Othermajorrelatedtransactions?Available□NotavailableForothermajorrelatedtransactions,pleaserefertotheSectionX“RelatedPartiesandRelatedTransaction”oftheFinancialReportofthisreport.Disclosurewebsiteofinterimreportformajorrelatedtransaction
Nameofinterimannouncement
| Nameofinterimannouncement | Disclosuredateofinterimannouncement | Nameofdisclosurewebsiteforinterimannouncement |
| AnnouncementonTransferringFullEquityofYantaiChangyuCulturalTourismDevelopmentCo.,Ltd.asTransferee | April24th,2020 | http://www.cninfo.com.cn |
| AnnouncementonTransferringKoyaandOtherBrandsofYantaiChangyuGroupCo.,Ltd.asTransferee | April24th,2020 | http://www.cninfo.com.cn |
17.Majorandimportantcontractsandexecutionresults
(1)Trusteeship,contractandleaseholdissues?Trusteeshipsituation?Available?NotavailableThereisnotrusteeshipsituationduringthereportperiod.
?Contractsituation?Available?NotavailableThereisnocontractsituationduringthereportperiod.?Leaseholdsituation
□Available?NotavailableThereisnoleaseholdsituationduringthereportperiod.
(2)Majorguarantee?Available□Notavailable?Guaranteesituation
Unit:CNY’0000
ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries）
| ExternalguaranteeoftheCompanyanditssubsidiaries（excludingguaranteetosubsidiaries） | ||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiEconomicandTechnologicalDevelopmentZoneManagementCouncil. | 2016.12.22 | 34,160 | 2016.12.21 | 34,160 | 10years | No | No | |
| Totaloftheexternalguaranteequotaapprovedduringthereportperiod(A1) | 0 | Totaloftheactualexternalguaranteeamountduringthereportperiod(A2) | 0 | |||||
| Totaloftheexternalguaranteequotaapprovedbytheendofthereportperiod(A3) | 34,160 | Balanceoftheactualexternalguaranteebytheendofthereportperiod(A4) | 34,160 | |||||
| GuaranteesituationsbetweentheCompanyandsubsidiaries | ||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee |
| YantaiChangyuWineResearchandDevelopmentCompanyLimited | 2016.12.22 | 72,176 | 2016.12.21 | 72,176 | Jointliabilityassurance;Mortgage | 10years | No | Yes |
| KilikanoonEstate | 2018.12.05 | 8,528 | 2018.12.13 | 7,518 | Joint | 5year | No | Yes |
PtyLtd
| PtyLtd | liabilityassurance | ||||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(B1) | 0 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(B2) | 0 | ||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesbytheendofthereportperiod(B3) | 80,704 | Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(B4) | 79,694 | ||||||
| Guaranteesituationsbetweensubsidiaries | |||||||||
| Guaranteeobjectname | Disclosuredateofrelatedannouncementaboutguaranteequota | Guaranteequota | Actualdateofoccurrence(dateofagreement) | Actualguaranteeamount | Guaranteetype | GuaranteePeriod | Whetherornotcompleteimplementation | Whetherornotbelongtorelated-partyguarantee | |
| — | — | — | — | — | — | — | — | — | |
| Totaloftheguaranteequotaapprovedtosubsidiariesduringthereportperiod(C1) | 0 | Totaloftheactualguaranteeamountforsubsidiariesduringthereportperiod(C2) | 0 | ||||||
| Totaloftheguaranteequotaapprovedtosubsidiariesbytheendofthereportperiod(C3) | 0 | Balanceoftheactualguaranteeforsubsidiariesbytheendofthereportperiod(C4) | 0 | ||||||
| TotalguaranteeamountoftheCompany（Totalofabovethreemajoritems） | |||||||||
| Totaloftheapprovedguaranteequotaduringthereportperiod（A1+B1+C1） | 0 | Totaloftheactualguaranteeamountduringthereportperiod（A2+B2+C2） | 0 | ||||||
| Totaloftheapprovedguaranteequotabytheendofthereportperiod（A3+B3+C3） | 114,864 | Balanceoftheactualguaranteebytheendofthereportperiod（A4+B4+C4） | 113,854 | ||||||
| Theproportionofactualtotalguaranteeamount(A4+B4+C4)accountingfortheCompany’snetasset | 11.09% | ||||||||
| Among: | |||||||||
| Theamountofguaranteeforshareholders,actualcontrollersandtheirrelatedparties（D） | 0 | ||||||||
| Theamountofdebtguaranteefortheguaranteedobjectswhoseasset-liabilityratioismorethan70%directlyorindirectly（E） | 0 | ||||||||
| Totalamountofguaranteeofthepartthatexceeds50%ofnetassets（F） | 0 | ||||||||
| Totalamountoftheabove-mentionedthreeitems（D+E+F） | 0 | ||||||||
Explanationforundueguaranteesthathavehappenedwarrantyliabilityormaytakejointpaybackliabilitiesduringthereportperiod(ifhave)
| Explanationforundueguaranteesthathavehappenedwarrantyliabilityormaytakejointpaybackliabilitiesduringthereportperiod(ifhave) | No |
| Explanationforviolatingdueprocesstoprovideexternalguarantee(ifhave) | No |
?Illegalexternalguarantee
□Available?NotavailableThereisnoillegalguaranteesituationduringthereportperiod.
(3)Entrustingotherstomanagecashassets?Financialmanagemententrustment
□Available?NotavailableThereisnofinancialmanagemententrustmentduringthereportperiod.?Loanentrustment
□Available?NotavailableThereisnoloanentrustmentduringthereportperiod.
(4)Majorcontractsfordailyoperations?Available?Notavailable
(5)Otherimportantcontracts
□Available?NotavailableTherearenootherimportantcontractsduringthereportperiod.
18.SocialResponsibility
(1)SocialresponsibilityperformancePleasereferto2020AnnualSocialResponsibilityReportdisclosedonSecuritiesTimes,ChinaSecuritiesNewspaperandwww.cninfo.com.cnbytheCompany.
(2)Targetedpovertyalleviationsocialresponsibilityperformance①TargetedpovertyplanTheCompanyhascounterpartsupportedtoHuangchengyangvillageinLongkouCity,anoldrevolutionarybasearea,topurchaselocalagriculturalproductssuchasapplesandmillet,tohelpsolvetheproblemofslowsales.②SummaryofannualtargetedpovertyTheCompanyhascompletedthe2020annualtargetedpovertywork.
③Targetedpovertyeffectiveness
Index
| Index | Unitofmeasurement | Quantity/Implementation |
| I.OverallSituation | —— | —— |
| Amongwhich:1.Capital | CNY’0000 | 54 |
| II.ItemizedInvestment | —— | —— |
| 1.Industrialdevelopmenttopovertyalleviation | —— | —— |
| 2.Transferemploymenttopovertyalleviation | —— | —— |
| 3.Relocationofimpoverishedresidentstopovertyalleviation | —— | —— |
| 4.Educationalpovertyalleviation | —— | —— |
| 5.Healthpovertyalleviation | —— | —— |
| 6.Ecologicalprotectiontopovertyalleviation | —— | —— |
| 7.ThresholdGuarantee | —— | —— |
| 8.Socialpovertyalleviation | —— | —— |
| 8.2Amountofinvestmentintargetedpovertyalleviation | CNY’0000 | 54 |
| 9.Otherprojects | —— | —— |
| III.Awards(contentandlevel) | —— | —— |
④SubsequenttargetedpovertyplanTheCompanywillcontinuetopurchaselocalagriculturalproductssuchasapplesandmilletfromHuangchengyangvillageinLongkouCitytohelpsolvetheproblemofslowsales.
(3)EnvironmentalprotectionrelatedsituationWhetherthelistedcompanyanditssubsidiariesbelongtomajorpolluterspublishedbytheenvironmentalprotectiondepartment?Yes?No
Nameofcompany
orsubsidiary
| Nameofcompanyorsubsidiary | Nameofmajorpollutantsandparticularpollutants | Modeofdischarge | Quantityofdischargeoutlet | Distributionsituationofdischargeoutlet | Dischargeconcentration | Implementedpollutiondischargestandard | Totalvolumeofdischarge | Totalapprovedvolumeofdischarge | Conditionofexcessivedischarge |
| LiaoningChangyuIcewineChateauCo.,Ltd. | Organizedexhaustgas,inorganizedexhaustgas,wasterwater,noise | Dischargeoutletofboilerchimneyanddischargeoutletoffactorywastewater | 2 | ConfirmedinlinewithnationalstandardGraphicalSignsforEnvironmentalProtection(GB15562.1-1995)(GB15562.2-1995) | Meetingthenationalstandards | EmissionStandardforAirPollutantsofBoiler(GB13271-2014),EmissionStandardforOdorPollutants(GB14554-93),4ainClass2ofEmissionStandardforEnvironmentalNoiseattheBoundaryofIndustrialEnterprises(GB12348-2008),ComprehensiveWastewaterDischargeStandardofLiaoningProvince(DB21/1627-2008) | 35m3/d | 120m3/d | No |
ConstructionandoperationofpollutionpreventionfacilitiesTheexhaustgas,SO
andNOXproducedbythiscompany'sboileraredischargedthroughceramictubedustremoversandbagdustremovers.Awastewatertreatmentstationhasbeenconstructed.Thewastewatertreatmentprocessadoptsthetreatmentprocessofhydrolysisaerobiont.Productionwastewateranddomesticsewagearetreatedbythein-plantwastewatertreatmentstationandthendischargedintothewastewatertreatmentplantinBeidianzixiangTown.EnvironmentalimpactassessmentofconstructionprojectsandotherenvironmentalprotectionadministrativepermitsIthasbeenapprovedintheHuanhuanjianzi(2016)No.24issuedbytheEnvironmentalProtectionBureauofHuanrenManchuAutonomousCounty.EmergencyplanforemergentenvironmentalincidentTheCompanyhasformulatedacomprehensiveemergencyplanforemergentenvironmentalincident.Environmentalself-monitoringprogramTheCompanyhasformulatedacompleteenvironmentalself-monitoringprogram.OtherenvironmentalinformationthatshouldbemadepublicNoOtherrelatedenvironmentalinformationNo
19.OtherMajorissues
□Available?NotavailableTherearenoothermajorissuesneedtobeexplainedduringthereportperiod.
20.MajorissuesofCompany’ssubsidiaries
□Available?Notavailable
VI.ChangesinSharesandtheShareholders’Situation
1.Changesinshares
(1)Changesinshares
Unit:share
Amountbeforethischange
| Amountbeforethischange | Change(+,-) | Amountafterthischange | |||||||
| Amount | Percentage% | Allotnewshare | Distributebonusshare | Transferothercapitaltosharecapital | Others | Subtotal | Amount | Percentage% | |
| I.Shareswithtradinglimitedcondition | |||||||||
| 1.State-ownedholdings | |||||||||
| 2.State-ownedlegalpersonholdings | |||||||||
| 3.Otherdomesticholdings | |||||||||
| Amongwhich:domesticlegalperson | |||||||||
| domesticnaturalperson | |||||||||
| 4.Foreign-ownedholdings | |||||||||
| Amongwhich:foreignlegalperson | |||||||||
| foreignnaturalperson | |||||||||
| II.Shareswithouttradinglimitedcondition | 685,464,000 | 100.00% | 685,464,000 | 100% | |||||
| 1.Ashares | 453,460,800 | 66.15% | 453,460,800 | 66.15% | |||||
2.Bshares
| 2.Bshares | 232,003,200 | 33.85% | 232,003,200 | 33.85% | |
| 3.Oversealistedforeignshares | |||||
| 4.Others | |||||
| III.Totalshares | 685,464,000 | 100.00% | 685,464,000 | 100% |
Causeofsharechange□Available?NotavailableApprovalofsharechange
□Available?NotavailableTransferownershipofchangedshares□Available?NotavailableImplementationprogressofsharebuy-back
□Available?NotavailableImplementationprogressofreducingholdingbuy-backsharethroughthewayofcentralizedbidding
□Available?NotavailableTheinfluenceofsharechangeonthefinancialindicatorssuchasbasicearningspershare,dilutedearningspershareofthelatestyearandthelatestperiod,netassetpersharebelongingtotheCompany’scommonshareholders,etc.
□Available?NotavailableOthercontentstheCompanythinksnecessaryorsecuritiesregulatorydepartmentsasktomakepublic.
□Available?Notavailable
(2)Changesinrestrictedshares□Available?Notavailable
2.Securitiesissuanceandlistingsituation
(1)Securitiesissuance(excludepreferredshare)duringreportperiod□Available?Notavailable
(2)ExplanationofchangeinCompany’stotalsharesandshareholdingstructureandchangeinCompany’sassetsandliabilitystructure
□Available?Notavailable
(3)Currentinternalemployeeshares
□Available?Notavailable
3.Situationforshareholdersandtheactualcontrollers
(1)ThenumberofshareholdersoftheCompanyandtheshareholdings
Unit：
share
Totalshareholdersinthereportperiod
| Totalshareholdersinthereportperiod | 49,043 | Totalnumberofshareholdersbytheendoflastmonthbeforethedisclosuredayoftheannualreport | 53,529 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendofreportperiod(ifhave)(seenote8) | 0 | Totalnumberofpreferredshareholderrecoveringvotingpowerbytheendoflastmonthbeforethedisclosuredayoftheannualreport(ifhave)(seenote8) | 0 | |||||||
| Shareholdersholdingmorethan5%orthetop10shareholdersholdingsituation | ||||||||||||||
| NameofShareholders | Characterofshareholders | Percentage(%) | Shareshelduntiltheendofthereportperiod | Changesduringthereportperiod | Numberofrestrictedshares | Numberofunrestrictedshares | Pledgedorfrozen | |||||||
| Sharestatus | Amount | |||||||||||||
| YANTAICHANGYUGROUPCO.,LTD. | Domesticnon-statelegalperson | 50.40% | 345,473,856 | 0 | 345,473,856 | |||||||||
| GAOLINGFUND,L.P. | Foreignlegalperson | 3.08% | 21,090,219 | 0 | 21,090,219 | |||||||||
| CHINASECURITIESFINANCECORP | Statelegalperson | 2.08% | 14,275,705 | -1,165,089 | 14,275,705 | |||||||||
BBHBOSS/AFIDELITYFD-CHINAFOCUSFD
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | Foreignlegalperson | 1.77% | 12,160,726 | -3,081,100 | 12,160,726 | ||||
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 1.20% | 8,231,733 | -11,600 | 8,231,733 | ||||
| FIDELITYPURITANTRUST:FIDELITYSERIESINTRINSICOPPORTUNITIESFUND | Foreignlegalperson | 0.93% | 6,350,762 | 0 | 6,350,762 | ||||
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | Foreignlegalperson | 0.80% | 5,481,945 | 671,600 | 5,481,945 | ||||
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | Foreignlegalperson | 0.69% | 4,741,787 | 2,032,092 | 4,741,787 | ||||
| CENTRALHUIJINASSETMANAGEMENTLIMITED | Statelegalperson | 0.69% | 4,761,200 | 0 | 4,761,200 | ||||
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | Foreignlegalperson | 0.56% | 3,808,449 | 19,962 | 3,808,449 | ||||
| Strategicinvestorsorlegalresultoftheplacementofnewsharestobecomeatop10shareholders(ifhave)(seenote3) | No | ||||||||
| Theexplanationfortheassociatedrelationshipandaccordantaction | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,whiletherelationshipamongtheothershareholdersisunknown. | ||||||||
| Explanationoftheabove-mentionedshareholders’entrustment/fiduciaryvotingrightsandwaiverofthevotingrights | No | ||||||||
| Thetop10shareholderswithshareswithouttradinglimitedcondition | |||||||||
| NameofShareholders | Numberofshareswithouttradinglimitedconditionhelduntiltheendoftheyear | Typeofshare | |||||||
| Typeofshare | Amount | ||||||||
| YANTAICHANGYUGROUPCO.,LTD. | 345,473,856 | A | 345,473,856 | ||||||
| GAOLINGFUND,L.P. | 21,090,219 | B | 21,090,219 | ||||||
| CHINASECURITIESFINANCECORP | 14,275,705 | A | 14,275,705 | ||||||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | 12,160,726 | B | 12,160,726 | ||||||
WhetherornottheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditiontakeagreedrepurchasetradingduringthereportperiod□Yes?NoThereisnoagreedrepurchasetradingtakenbytheCompany’stop10commonshareholdersandshareholderswithshareswithouttradinglimitedconditionduringthereportperiod.
（2）SituationforthecontrollingshareholdersoftheCompanyPropertyofholdingshareholders:PropertyofholdingmainbodyundefinedTypeofholdingshareholders:Legalrepresentative
Nameofcontrollingshareholder
| Nameofcontrollingshareholder | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiChangyuGroupCo.,Ltd. | ZhouHongjiang | 1997.04.27 | 913706002656458244 | Productionofwine,healthyliquor,distilledliquorand |
| SHENWANHONGYUANSECURITIES(HONGKONG)LIMITED | 8,231,733 | B | 8,231,733 |
| FIDELITYPURITANTRUST:FIDELITYSERIESINTRINSICOPPORTUNITIESFUND | 6,350,762 | B | 6,350,762 |
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | 5,481,945 | B | 5,481,945 |
| HaitongInternationalSecuritiesCompanyLimited-AccountClient | 4,741,787 | B | 4,741,787 |
| CENTRALHUIJINASSETMANAGEMENTLIMITED | 4,761,200 | A | 4,761,200 |
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | 3,808,449 | B | 3,808,449 |
| Theexplanationfortheassociatedrelationshipandaccordantactionofthetop10shareholderswithunrestrictedshares,thetheassociatedrelationshipandaccordantactionbetweenthetop10shareholderswithunrestrictedsharesandthetop10shareholders | Amongthetop10shareholders,YantaiChangyuGroupCompanyLimitedhasnoassociatedrelationshiporaccordantactionrelationshipwiththeother9listedshareholders,andtherelationshipamongtheothershareholdersisunknown. | ||
| Explanationforthetop10shareholderswhoinvolvedinfinancingactivitiesandstocktradingbusiness | Thetop10shareholdersdonotinvolveinfinancingactivitiesandstocktradebusiness. | ||
beverages(onlyproducedbysubsidiaries,shareholdingcompaniesandbranches),salesoftheabove-mentionedproducts,cultivationofagriculturalproductsandexportbusinessunderthescopeofpermission.
| beverages(onlyproducedbysubsidiaries,shareholdingcompaniesandbranches),salesoftheabove-mentionedproducts,cultivationofagriculturalproductsandexportbusinessunderthescopeofpermission. | ||
| Equitysituationfortheotherdomesticlistedcompaniescontrolledorsharedbythecontrollingshareholdersduringthereportperiod | No. | |
Changesinthecontrollingshareholderduringthereportperiod□Available?NotavailableTherearenochangesinthecontrollingshareholderduringthereportperiod.
(3)SituationfortheactualcontrollersoftheCompanyanitspersonsactinginconcertPropertyofactualcontrollers:domesticotherinstitutions;foreignotherinstitutionsTypeofactualcontrollers:Legalrepresentative
| Nameofactualcontrollers | Legalrepresentative | Establishmentdate | Organizationcode | Mainbusiness |
| YantaiYuhuaInvestment&DevelopmentCo.,Ltd. | JiangHua | 2004.10.28 | 76779294-7 | Understatepermission,propertyinvestment,tenancyofmachineandfacility,wholesaleandretailofconstructionmaterial,chemicalproducts(chemicalhazardproductsexcluded),hardwareandelectronicalproducts,grapeplantation. |
| ILLVASaronnoHoldingS.p.a. | AugustoReina | 1984.07.25 | － | Directlyorindirectlyconducttheproductionanddistributionoffoodproducts(alcoholicproductsincluded)aswellasindustrial,commercial,financialandserviceactivitiesofanyotherkindsthroughjoint-stockcompaniesandorganizations. |
| InternationalFinanceCorporation | PhilippeLEHOUEROU | 1956.07.25 | － | InternationalFinanceCorporationisoneofthemembersofWorldBank,mainlydedicatedtoinvestmentinprivatesectorsofdevelopingcountrieswhileprovidingtechnicalsupportandconsultationservice.Thecorporationisamultilateralfinancialinstitutionthatranksfirstintheworldintermsofprovidingcapitalstockandloanstodevelopingcountries.Itspurposeistopromotesustainableinvestmentsofprivatesectorsofdevelopingcountriesinordertoalleviatepovertyandimprovepeople’slife. |
YantaiGuofengInvestmentHoldingsGroupCo.,Ltd.
| YantaiGuofengInvestmentHoldingsGroupCo.,Ltd. | RongFeng | 2009.02.12 | 00426068-6 | Operatingmanagementofstate-ownedpropertyright(stockright)authorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment;Financing,investmentandoperatingmanagementofgovernmentprojects,suchasstrategicinvestmentandindustrialinvestmentandsoon;Capitaloperation(includingacquisition,reintegrationandtransfer,etc)ofstate-ownedpropertyrightandstate-ownedstockrightwithinthescopeofauthorization;Venturecapitalinvestmentbusiness;Agencyofventurecapitalinvestmentbusinessofotherventureinvestmententerprisesorindividuals;Participationintheestablishmentofventurecapitalinvestmententerprisesandventurecapitalinvestmentmanagementconsultantinstitutions;Investmentandfinancingservicebusiness;Investmentandfinancingconsultantbusiness;OtherbusinessauthorizedbyState-ownedAssetsSupervisionandAdministrationCommissionofYantaiMunicipalGovernment.(Projectsneedtobeauthorizedinaccordancewiththelawcouldcarryoutbusinessactivitiesonlyaftertheapprovalofrelevantdepartments) |
| Equitysituationfortheotherdomesticlistedcompaniescontrolledbytheactualcontrollerduringthereportperiod | YantaiYuhuaInvestment&DevelopmentCo.,Ltd.didnotcontroltheequityofotherdomesticandforeignlistedcompaniesexcepttheCompanyduringthereportingperiod;ItisnotclearthatotheractualcontrollerscontroltheequityofotherdomesticandforeignlistedcompaniesotherthantheCompanyduringthereportingperiod. | |||
Changesoftheactualcontrollersduringthereportperiod□Available?NotavailableTherearenochangesinactualcontrollersduringthereportperiod.
IntroductionforpropertyrightandcontrolrelationsbetweentheCompanyanditsactualcontrollers
ActualcontrollercontrolstheCompanythroughatrustorotherassetmanagementways□Available?Notavailable
(4)Otherinstitutionalshareholdersholdingmorethan10%shares
□Available?Notavailable
(5)Sharesreductionsituationsofholdingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects□Available?Notavailable
VII.RelatedSituationofPreferredShares
□Available?NotavailableTherearenopreferredsharesduringthereportperiod.
VIII.RelatedSituationofConvertibleCorporateBonds
□Available?NotavailableTherearenoconvertiblecorporatebondsduringthereportperiod.
IX.SituationforDirectors,Supervisors,SeniorExecutivesandStaff
1.Changesinshareholdingsofdirectors,supervisorsandseniorexecutives
Name
| Name | Post | Status | Gender | Age | Beginningdateoftenure | Endingdateoftenure | Sharesheldatthebeginningoftheperiod | Increasedsharesduringtheperiod | Decreasedsharesduringtheperiod | Otherchangesofsharesheld | Sharesheldattheendoftheperiod |
| ZhouHongjiang | Chairman | Incumbent | M | 56 | 2002.05.20 | 2022.05.18 | 0 | 36,500 | 0 | 0 | 36,500 |
| LengBin | Director | Incumbent | M | 58 | 2000.08.22 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| SunJian | Director | Incumbent | M | 54 | 2019.05.17 | 2022.05.18 | 0 | 30,000 | 0 | 0 | 30,000 |
| LiJiming | Director | Incumbent | M | 54 | 2019.05.17 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| ChenDianxin | Director | Incumbent | F | 54 | 2019.05.17 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| AugustoReina | Director | Outgoing | M | 79 | 2006.12.07 | 2020.02.20 | 0 | 0 | 0 | 0 | 0 |
| AldinoMarzorati | Director | Incumbent | M | 68 | 2006.12.07 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| StefanoBattioni | Director | Incumbent | M | 62 | 2020.05.27 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| EnricoSivieri | Director | Incumbent | M | 52 | 2019.05.17 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| WeiAnning | Director | Outgoing | M | 57 | 2017.06.15 | 2020.05.11 | 0 | 0 | 0 | 0 | 0 |
| ChiangYun | Director | Incumbent | F | 53 | 2020.06.19 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| WangZhuquan | Independentdirector | Outgoing | M | 55 | 2014.05.23 | 2020.05.27 | 0 | 0 | 0 | 0 | 0 |
| LuoFei | Independentdirector | Incumbent | M | 68 | 2016.09.23 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| DuanChangqing | Independentdirector | Incumbent | M | 56 | 2019.05.17 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| LiuHuirong | Independentdirector | Incumbent | F | 57 | 2019.05.17 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| LiuQinglin | Independentdirector | Incumbent | M | 57 | 2019.07.02 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| YuRenzhu | Independentdirector | Incumbent | M | 42 | 2020.05.27 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| KongQingkun | ChairmanoftheBoardofSupervisors | Incumbent | M | 48 | 2013.05.14. | 2020.05.18 | 0 | 0 | 0 | 0 | 0 |
| ZhangLanlan | Supervisor | Incumbent | F | 51 | 2013.05.14. | 2020.05.18 | 0 | 0 | 0 | 0 | 0 |
| LiuZhijun | Supervisor | Incumbent | M | 40 | 2016.05.26 | 2020.05.18 | 0 | 0 | 0 | 0 | 0 |
SunJian
| SunJian | Generalmanager | Incumbent | M | 54 | 2018.01.10 | 2022.05.18 | 0 | 0 | 0 | 0 | 0 |
| LiJiming | Deputygeneralmanager | Incumbent | M | 54 | 2019.05.28 | 2022.05.29 | 0 | 0 | 0 | 0 | 0 |
| JiangHua | Deputygeneralmanager | Incumbent | M | 57 | 2001.09.14 | 2022.05.29 | 0 | 0 | 0 | 0 | 0 |
| PengBin | Deputygeneralmanager | Incumbent | M | 54 | 2018.01.10 | 2022.05.29 | 0 | 0 | 0 | 0 | 0 |
| JiangJianxun | DeputygeneralmanagerandBoardsecretary | Incumbent | M | 54 | 2019.05.28 | 2022.05.29 | 0 | 0 | 0 | 0 | 0 |
| PanJianfu | Generalmanagerassistant | Incumbent | M | 45 | 2018.04.19 | 2022.05.29 | 0 | 0 | 0 | 0 | 0 |
| LiuShilu | Generalmanagerassistant | Incumbent | M | 46 | 2018.04.19 | 2022.05.29 | 0 | 0 | 0 | 0 | 0 |
| XiaoZhenbo | Generalmanagerassistant | Incumbent | M | 44 | 2018.04.19 | 2022.05.29 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 0 | 66,500 | 0 | 0 | 66,500 |
2.ChangesintheCompany’sdirectors,supervisorsandseniorexecutives?Available□Notavailable
| Name | Position | Type | Date | Reason |
| AugustoReina | Director | Outgoing | 2020.02.20 | Diedofillness |
| StefanoBattioni | Director | Beelected | 2020.05.27 | Beelectedasadirector |
| WeiAnning | Director | Outgoing | 2020.05.11 | Resignsasadirectorforpersonalreasons |
| ChiangYun | Director | Beelected | 2020.06.19 | Beelectedasadirector |
| YuRenzhu | Independentdirector | Beelected | 2020.05.27 | Beelectedasanindependentdirector |
| WangZhuquan | Independentdirector | Outgoing | 2020.05.27 | Resignsasanindependentdirectorforpersonalreasons |
3.SituationforworkexperienceTheprofessionalbackground,mainworkexperiencesandpresentpositionsoftheCompany’sdirectors,supervisorsandseniorexecutives
(1)MembersofBoardofDirectorsMr.ZhouHongjiang,male,56,Chinese,withdoctoraldegree,seniorengineer,usedtobetheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd.,theDeputyGeneralManager,theGeneralManagerandtheDeputyChairmanofYantaiChangyuPioneerWineCo.,Ltd..Heisincumbentastherepresentativeofthe13
th
NationalPeople’sCongress,theChairmanofYantaiChangyuGroupCo.,Ltd.,andtheboarddirectorandtheChairmanoftheCompany.Mr.LengBin,male,58,Chinese,withmasterdegree,senioraccountant,usedtobetheDeputySectionChiefandtheSectionChiefofYantaiAuditBureau,theboarddirectorandtheChiefAccountantofYantaiChangyuGroupCo.,Ltd.andtheboarddirectorandtheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectoroftheGroupCompanyandtheCompany,withanadditionalpostoftheGeneralManageroftheGroupCompany,andtheChairmanandGeneralManagerofYantaiZhongyaMedicalHealthWineCo.,Ltd..Mr.SunJian,male,54,Chinese,MBA,usedtobetheDeputyGeneralManageroftheCompany.HeisincumbentastheboarddirectorandtheGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectoroftheGroupCompany.Mr.LiJiming,male,54,Chinese,withdoctoraldegree,applicationresearcher,usedtobetheChiefEngineeroftheCompany.HeisincumbentastheboarddirectorandtheDeputyGeneralManageroftheCompany,andwithanadditionalpostoftheboarddirectoroftheGroupCompany.Mrs.ChenDianxin,female,54,Chinese,withmasterdegreeofthePartySchool;fromJuly1985toSeptember2013,shesuccessivelyservedasstaffofYantaiChemicalPurchasingandSupplyStation,YantaiBureauofCommerceforsecondment,staffofYantaiStated-ownedAssetsAssessmentCenter,theDeputyDirectorofYantaiStated-ownedAssetsAssessmentCenter,theDeputySectionChiefofAssetsAssessmentManagementDepartmentinYantaiState-ownedAssetsBureau,theDeputySectionChiefofAssetsAssessmentManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission,full-timeDeputySecretaryofPartybranchinYantaiState-ownedAssetsSupervisionandAdministrationCommission,theSectionChiefofPropertyManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission.FromSeptember2013toFebruary2014,sheservedastheDirectorofretiredcardersworkofficeandtheSectionChiefofPropertyManagementDepartmentinYantaiState-ownedAssetsSupervisionandAdministrationCommission.FromFebruary2014toOctober2018,sheservedastheDirectorofretiredcardersworkofficeinYantaiState-ownedAssetsSupervisionandAdministrationCommission(Duringtheperiod,shesuccessivelyandconcurrentlyservedastheDirectorofYantaiMoonGroupCo.,Ltd.andYantaiMoonCo.,Ltd.,directorofYantaiTayhoAdvancedMaterialsGroupCo.,Ltd.,theChairmanofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.,theChairmanandtheGeneralManagerofYantaiGuoshengInvestmentHoldingCo.,Ltd.,theChairmanofYantaiGuoxinInvestmentHoldingCo.,Ltd.,theViceChairmanandtheDirectorofYantaiCIMCRafflesOffshoreCo.,
Ltd.,theVicechairmanandtheDirectorofYantaiCIMCRafflesShipyardCo.,Ltd.andtheDirectorofYantaiGuoyuLeaseFinanceCo.,Ltd.andsoon).SinceOctober2018,shehasbeenservedastheDeputySecretaryofPartybranchandtheGeneralManagerofYantaiGuofengInvestmentHoldingGroupCo.,Ltd.andthecurrentboarddirectoroftheCompany.Mr.AldinoMarzorati,male,68,Italian,withbachelordegree,servescurrentlyastheGeneralManagerofIllvaSaronnoHoldingS.p.A,thememberoftheboardofdirectorsofsomebranchesundertheGroupCompany,andtheboarddirectorofChangyuGroupCo.,Ltd.andtheCompany.StefanoBattioni,male,62,Italian,graduatedwithabachelor’sdegree.HehasservedasaSeniorProductManagerofColgatePalmoliveinItaly,theMarketingDirectorofBarillaHolding,theInternationalMarketingDirectorandtheSpiritsBusinessUnitDirector-GeneralManagerofIllvaSaronnoS.p.A.(aspiritcompanyasawholly-ownedsubsidiaryofIllvaSaronnoHoldingS.p.A.).HeiscurrentlytheCEOofIllvaSaronnoS.p.A.andtheboarddirectorofChangyuGroupCo,.Ltd.andtheCompany.Mr.EnricoSivieri,male,52,Italian,withbachelordegree,servedsuccessivelyasthefinancialcontrollerofARNEGS.p.a.,thecommercialanalystofSPILLERSFOODSITALIAS.p.a.,thetradecontrollerofNestle’PurinaPetcareEurope,Europeanmarketing&salescontrollerofNestle’PurinaPetcareEurope,theEuropeansupplychaincontrollerofNestle’PurinaPetcareEurope,theSouthernEuroperegionalcontrollerofNestle’PurinaPetcareEuropeandtheDirectorofgroupfinancialcontrollingofIllvaSaronnoHoldingS.p.A.,andcurrentlyservingasamemberoftheboardofdirectorsforRoyalOakDistilleryLtd.andtheGeneralManagerofIllvaSaronnoHoldingS.p.A.,andtheboarddirectoroftheCompany.Ms.ChiangYun,female,53,successivelyobtainedBachelorofSciencedegreeMagnaCumLaudefromVirginiaTech,Virginia,EMBAofTheKelloggSchoolofManagementatNorthWesternUniversity,USAandEMBAofTheGraduateSchoolofManagement,HongKongUniversityofScienceandTechnology,HongKong,China.SheusedtoactedasDirectoratAmericanInternationalGroup(AIG)directinvestmentteam,theManagingPartnerofPacificAllianceGroup(PAG).ShecurrentlyservesastheINEDandmemberofAuditCommitteeandNominationCommitteeinLasVegasSandsChina,theINEDandmemberofAuditCommittee,RemunerationsCommitteeandNominationCommitteeinGoodbabyInternationalHoldingLtd.,theINED,memberofAuditCommitteeandNominationCommitteeandChairladyofRemunerationsCommitteeinPacificCenturyPremiumDevelopmentsLtd.,theINEDandmemberofAuditCommitteeandHealth,SafetyandSecurityCommitteeinMerlinEntertainmentsplc.,theCEOandFoundingPartnerofProspereCapital,andtheboarddirectoroftheGroupCompanyandtheCompany.Mr.LuoFei,male,68,Chinese,withdoctoraldegree,visitingscholarofUniversityofToronto,doctoralsupervisors,GovernmentSpecialAllowanceexpert,firstbatchoftrans-centurysubject(academic)leadingpersonalsofFinancialDepartment.HesuccessivelyservedastheDeanofAccountingInstituteinZhongnanUniversityofEconomicsandtheDeanofAccountingInstituteinZhongnanUniversityofEconomicsandLaw.HefocusesonthestudyofFinancialAccounting,CostAccounting,FinancialManagement,andsoon.Hehasworkedincompaniesformanyyearsandhaspracticalworkingexperiencewithcompanies.NowheisservingasanindependentdirectoroftheCompany.Mr.DuanChangqing,male,56,Chinese,withdoctoraldegree,professor,doctoralandmaster’ssupervisor,andthenationalseniorwinemakerandseniorwinetaster.Hecurrently
servesasthechiefscientistofnationalgrapeindustrytechnologysystemandtheDirectorofWineProcessingKeyLaboratoryofMinistryofAgricultureandRuralAffairs.Meanwhile,heholdsconcurrentpostsoftheDirectorofChinaWineTechnologyCommittee,theDirectorofChinaWineandFruitWineExpertCommittee,theExecutivePresidentandtheSecretaryGeneralofGrapeandWineBranchofChineseHorticulturalSocietyandtheVicePresidentofChinaAgriculturalSocietyGrapeBranch.Hismajorresearchfieldsarethebasictheoreticalresearchandrelatedhighandnewtechnologyresearchanddevelopmentaswellasapplicationpromotionworkinthedirectionofsuitabilitybetweenecologyinproducingareaandgrapevarietyandliquorvariety,evolvementmechanismanddirectionalbrewingofwineflavorformation,grapefruitflavormetabolismregulationandproductflavorqualityevaluationandsoon.HeisacurrentindependentdirectoroftheCompany.Ms.LiuHuirong,female,57,Chinese,withdoctoraldegree,theformerDeputyDeanandDeanoftheInstituteofPoliticalScienceandLawofOceanUniversityofChina.SheusedtoserveasanindependentdirectorofSailunGroupCo.,Ltd.,LongdaMeatandSacredSunCo.,Ltd.andShandongSacredSunPowerSourcesCo.,Ltd..Currently,sheisasecond-levelprofessoranddoctoralsupervisorofOceanUniversityofChinaandwithadditionalpostasaresearcherofthe“BeltandRoadInitiative”JudicialResearchCenteroftheSupremePeople’sCourt,anexpertattheSupremePeople’sCourtforforeign-relatedcommercialandmaritimeactionexpertdatabase,theDeputyChairmanofthesixthShandongLawSocietyandtheDeputyDirectoroftheAcademicCommittee,andtheChairmanoftheQingdaoLaw-basedGovernmentResearchInstitute.HerresearchfieldsareInternationalLawandLegislativeScience.ShehaswonthetitleofShandongTopTenOutstandingYoungandMiddle-agedJurists,thethirdprizeofExcellentSocialScienceAchievementoftheMinistryofEducation,thethirdprizeofShandongExcellentSocialScienceAchievement,thesecondprizeofShandongExcellentPhilosophyandSocialScienceAchievement,thefirstprizeofExcellentAchievementofShandongEducationDepartmentandtheTopTalentinQingdaoCity.SheisacurrentanindependentdirectoroftheCompany.Mr.LiuQinglin,male,57,doctoraldegreeofManagement,Chinese,nooverseaspermanentresidence.HeiscurrentlyaprofessoranddoctoralsupervisorofEconomicsFacultyofShandongUniversity,theDirectorofInstituteforWorldEconomyStudiesofShandongUniversity,theExecutiveDeputyPresidentofShandongInstituteofDevelopmentofShandongUniversity,amemberofacouncilofChinaSocietyofWorldEconomics,anexecutivememberofacouncilofTheAssociationforCanadianStudiesinChinaandShandongYouthScholarsAssociation,amemberofacouncilofShandongAssociationforBusinessEconomicsandShandongPriceAssociation.HecurrentlyservesasanindependentdirectorofShandongXinnengTaishanPowerGenerationCo.,Ltd.,anindependentdirectorofWeihaiHuadongAutomationCo.,Ltd.,andanindependentdirectoroftheCompany.Mr.YuRenzhu,male,42yearsold,Chinese,withgraduatedegree(doctoraldegreeinmanagementscience),usedtoactastheDeputyDirectorofHuanglongNationalScenicAreaAdministrationinAbaprefectureofSichuanprovinceasamemberofthe18thdoctoralteamoftheCentralOrganizationDepartmentandtheCommunistYouthLeagueofChina.Currently,heservesasaprofessorandamastersupervisorinSchoolofBusinessAdministrationinShandongUniversityofFinanceandEconomics,andanindependentdirectoroftheCompany.
(2)Membersofboardofsupervisors
Mr.KongQingkun,male,48,Chinese,MBAandeconomist,successivelyservedasasectionmemberofproductiondepartmentinthehealthyliquorbranchoffice,aclerkandtheDeputyDirectorandtheDirectorofgeneralmanageroffice.Ms.ZhangLanlan,female,51,bachelordegreeandeconomist,successivelyservedastheDeputyManageroftheimportandexportbranchoftheCompanyandtheManagerofimportdepartmentoftheCompany.ShenowistheDirectorofboardofdirectors’office.Mr.LiuZhijun,male,40,Chinese,bachelordegree,workedinforeignfunddepartmentofEconomyandTradeBureauinLongkouEconomicDevelopmentZone,servedasanewssectionmemberofpropagandadepartmentinLongkouMunicipalCommittee,amemberofpropagandaandmassworksection,amemberofplanningsection,theDeputyDirectorMemberofprogrammingdevelopmentandenterprisedistributionsection,theDeputyDirectorMemberandtheDeputyChiefofprogrammingdevelopmentsection.HenowisasupervisoroftheCompany.
(3)OtherseniorexecutivesMr.JiangHua,male,57,Chinese,withmasterdegree,seniorengineer,hasbeenservingastheDeputyGeneralManageroftheCompanysince14
th
September,2001.Mr.PengBin,male,54,MBA,seniorengineer,eversuccessivelyservedastheDepartmentChiefofTechnicalTransformationDepartmentandtheMinisterofInvestmentandDevelopmentDepartmentaswellastheDeputyGeneralManagerofYantaiChangyuGroupCo.,Ltd.andtheGeneralManagerAssistantofYantaiChangyuGroupCo.,Ltd..HecurrentlyservesastheDeputyGeneralManageroftheCompany.Mr.JiangJianxun,male,54,Chinese,MBAandaccountant,servedastheFinancialManageroftheCompanyfrom20
thMay,2002to10
thJanuary,2018.HeservesastheDeputyGeneralManagerandBoardSecretaryoftheCompany.Mr.PanJianfu,male,Hanethnic,Chinese,45,MBAandsenioreconomist,usedtoserveastheGeneralManageroftheJiangxiBranchoftheCompany,theGeneralManageroftheShanghaimarketingmanagementcompanyandtheGeneralManagerofBeijingmarketingmanagementcenter.Currently,heistheGeneralManagerAssistantoftheCompanyandtheGeneralManagerofBeijingmarketingmanagementcenterandBeijingChateauAFIP.Mr.LiuShilu,male,Hanethnic,Chinese,46,masterdegree,usedtobetheManagerofTianjinbranchoftheCompany,theCompetenceManagerofNorthChinamarket,theGeneralMangerofBeijingmarketingmanagementcompany,theGeneralManagerofGuangdongmarketingmanagementcenterandtheGeneralManagerofe-commercebranchoftheCompany.Currently,heservesastheGeneralManagerAssistanceoftheCompanyandtheGeneralManagerofYantaiChangyuPioneerWineSalesCo.,Ltd..Mr.XiaoZhenbo,male,Hanethnic,Chinese,44,MBA,servedastheDeputyManageroftheCompany’smarketstrategydevelopmentcenter,theGeneralManagerofShandongmarketingmanagementcompanyandYantaiChangyuliquorcompany.HecurrentlyservesastheGeneralManagerAssistantoftheCompanyandtheGeneralManagerofZhejiangmarketingmanagementcompany.Postintheshareholder’scompany?Available□Notavailable
Name
| Name | Shareholder’sCompany | Post | Beginningdateofthepost | Endingdateofthepost | Paidbyshareholder’scompanyornot |
| ZhouHongjiang | YantaiChangyuGroupCo.,Ltd. | Chairman | 2018.01.10 | 2022.01.11 | No |
| LengBin | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2022.01.11 | Yes |
| LengBin | YantaiChangyuGroupCo.,Ltd. | Generalmanager | 2018.01.10 | 2022.01.11 | Yes |
| SunJian | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2022.01.11 | No |
| LiJiming | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2022.01.11 | No |
| ChenDianxin | YantaiChangyuGroupCo.,Ltd. | Director | 2018.11.15 | 2022.01.11 | No |
| AldinoMarzorati | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2022.01.11 | No |
| EnricoSivieri | YantaiChangyuGroupCo.,Ltd. | Director | 2018.01.10 | 2022.01.11 | No |
| StefanoBattioni | YantaiChangyuGroupCo.,Ltd. | Director | 2020.04.09 | 2022.01.11 | No |
| ChiangYun | YantaiChangyuGroupCo.,Ltd. | Director | 2020.05.12 | 2022.01.11 | No |
| Explanationforthepostintheshareholder’scompany | Mr.LengBinalsoholdsconcurrentpostastheChairmanandGeneralManagerofYantaiZhongyaMedicalHealthWineCo.,Ltd.,whichisasubsidiaryofYantaiChangyuGroupCo.,Ltd.. | ||||
Postatothercompanies
□Available?NotavailableDisciplinaryactionstakenbysecuritiesregulatorsinrecent3yearstotheCompany’sdirectors,supervisorsandseniormanagementbothonthejobandleftduringthereportperiod?Available□NotAvailableIn2019,theShandongRegulatoryBureauofChinaSecuritiesRegulatoryCommissionissueda“DecisiononMeasurestoIssueWarningLetterstoMr.ZhouHongjiangandMr.QuWeimin”,butitdidnotimposeadministrativepenaltyonMr.ZhouHongjiangandMr.QuWeimin.
4.Salaryofdirectors,supervisorsandseniorexecutivesThesituationofdecision-makingprocess,thebasisofdeterminationandtheactualpaymentofdirectors,supervisorsandseniorexecutivesThesalaryfortheindependentdirectorsispaidaccordingtotheresolutionofshareholders’meeting.Thesalaryforthechairman,directorswithadministrationduty,supervisors,managersandotherseniormanagementshouldbepaidonbasisoftheevaluationresultaccordingtotheYantaiChangyuPioneerWineCo.,Ltd.ExecutiveCompensationandPerformanceDesign,whichwaspassedduringtheBoardofDirectors’meeting.Salaryofdirectors,supervisorsandseniorexecutivesduringthereportperiod
Unit:CNY’0000
Name
| Name | Post | Gender | Age | Status | TotalrewardfromtheCompanybeforetax | WhethergetrewardfromrelatedpartiesoftheCompany |
| ZhouHongjiang | Chairman | M | 56 | Incumbent | 76.05 | No |
| LengBin | Director | M | 58 | Incumbent | 0 | Yes |
| SunJian | DirectorandGeneralManager | M | 54 | Incumbent | 69.64 | No |
| LiJiming | DirectorandDeputyGeneralManager | M | 54 | Incumbent | 54.93 | No |
| ChenDianxin | Director | F | 54 | Incumbent | 0 | No |
| AugustoReina | Director | M | 79 | Outgoing | 0 | No |
| AldinoMarzorati | Director | M | 68 | Incumbent | 0 | No |
| StefanoBattioni | Director | M | 62 | Incumbent | 0 | No |
| EnricoSivieri | Director | M | 52 | Incumbent | 0 | No |
| WeiAnning | Director | M | 57 | Outgoing | 0 | No |
| ChiangYun | Director | F | 53 | Incumbent | 0 | No |
| LuoFei | IndependentDirector | M | 68 | Incumbent | 8 | No |
| DuanChangqing | IndependentDirector | M | 56 | Incumbent | 8 | No |
| LiuHuirong | IndependentDirector | F | 57 | Incumbent | 8 | No |
| WangZhuquan | IndependentDirector | M | 55 | Outgoing | 4 | No |
| LiuQinglin | IndependentDirector | M | 57 | Incumbent | 8 | No |
| YuRenzhu | IndependentDirector | M | 42 | Incumbent | 6 | No |
| KongQingkun | ChairmanoftheBoardofSupervisors | M | 48 | Incumbent | 35.07 | No |
| ZhangLanlan | Supervisor | F | 51 | Incumbent | 18.56 | No |
| LiuZhijun | Supervisor | M | 40 | Incumbent | 0 | No |
| JiangHua | DeputyGeneralManager | M | 57 | Incumbent | 83.79 | No |
| PengBin | DeputyGeneralManager | M | 54 | Incumbent | 60.02 | No |
| JiangJianxun | DeputyGeneralManagerandBoardSecretary | M | 54 | Incumbent | 55.41 | No |
| PanJianfu | GeneralManagerAssistant | M | 45 | Incumbent | 45.49 | No |
| LiuShilu | GeneralManagerAssistant | M | 46 | Incumbent | 50.36 | No |
| XiaoZhenbo | GeneralManagerAssistant | M | 44 | Incumbent | 44.85 | No |
| Total | -- | -- | -- | -- | 636.17 | -- |
Theawardedequityincentivesforthedirectors,supervisorsandseniorexecutivesoftheCompanyduringthereportperiod□Available?Notavailable
5.StaffoftheCompany
(1)Staffnumber,specialtyconstitutionandeducationdegree
| Incumbentstaffnumberofparentcompany(people) | 1,205 |
| Incumbentstaffnumberofmajorsubsidiarycompanies(people) | 1,355 |
| Totalincumbentstaff(people) | 2,560 |
| Totalstaffgettingpaidincurrentperiod(people) | 2,560 |
| Retiredstaffnumberwhoseexpensesareundertakenbyparentcompanyorsubsidiarycompanies(people) | 0 |
| Specialtyconstitution | |
Category
| Category | Numberofpeople(people) |
| Productionstaff | 849 |
| Salesstaff | 1,221 |
| Technicalstaff | 159 |
| Financialstaff | 145 |
| Administrativestaff | 186 |
| Total | 2,560 |
| Educationdegree | |
| Category | Number(People) |
| Bachelorandabove | 927 |
| JuniorCollege | 845 |
| Technicalsecondaryschool | 459 |
| Seniorhighschoolandbelow | 329 |
| Total | 2,560 |
(2)RemunerationpolicyTheCompanyhasestablishedandimprovedtheremunerationandwelfaresystem,includingsalarysystem,incentivemechanism,socialsecurityandmedicalinsuranceandsoon,toensuretheparticipationofallemployees.Inaccordancewiththelaw,theCompanypurchasessocialendowmentinsurance,medicalinsurance,occupationalinjuryinsurance,unemploymentinsuranceandmaternityinsurance,andpayshousingfundfortheemployees.Basedontheprincipleof“distributionaccordingtoworkandequalpayforequalwork”,theCompanypaysthestaff’sremunerationtimely.WiththeimprovementoftheCompany’sprofitability,theCompanysteadilyimprovesthestaff’sremunerationandwelfare,andprovidesitsemployeesthecompetitivesalaryandequalopportunityfordevelopment.
(3)Trainingplan①SeniorandMiddle-levelManagers
1)GeneraltrainingChoosingtrainingtopicsrelatedtothecompanyindustrydevelopment,managementdirectionandmanagementconceptinordertoexploitstrategicthinkingofseniorandmiddle-leveladministrativestaff,promotingoperationprinciple,andimprovingscientificdecision-makingabilityandmanagementability.Holdingmeetingsinsteadoftraining,throughwhichtheycouldlearnnationalandlocalpolicy,analyzedomesticandforeignpoliticalsituationandeconomicsituation,studyandunderstandtheinfluenceofrelatedpoliciesandregulationsinthecompany’sdevelopment,analyzethedevelopmenttrendofproduction,technology,managementandmarketingindomesticandforeignindustries.
2)ProfessionaltrainingSeniorandmiddle-leveladministrativestaffshouldconfirmself-learningbooksbyself-selectioneveryyear,andsubmitreaderresponseattheendoftheyearandmakesuggestionsinthecompany’sdevelopmentonthebasisoftheirownwork.Basedontheirrespectivework,organizingthemtoattendEntrepreneurHigh-endForumandSummitMeetingandgotodomesticandforeignsuccessfulenterpriseforvisitandstudy.Encouragingmiddle-leveladministrativestafftoattenduniversitycorrespondence,self-studyexamination,MBAorotherfurthereducationformasterdegree;organizingprofessionalmanagementcadres,involvedinhumanresources,finance,facility,safetyandtechnologyqualityetc.,toattendvocationalqualificationexaminationforprofessionalcertificate.
Attendingspecialtrainingsuchassafety,humanresource,law,technology,facility,financeandtourismetc.whichareorganizedbyspecialmanagementdepartment.②AdministrativeStaffinProduction,TourismandAdministrativeSystemsWhoseLevelareorBelowSectionChief
1)GeneraltrainingSettingcoursesthatareaimingatimprovingemployeemanagementability,innovationabilityandexecutiveability,andhiringaprofessionallectureroruniversityteachertoteachatthecompanyAttendingcommon-sensegeneraltrainingincludingcompanyculture,regulatoryframeworkandvariousliquorproductsknowledge,reinforcetrainingintheaspectofhumanresourcemanagementandsafetyproduction.Organizingemployeetoattendoutdoorqualityexpansiontraininginordertoimproveadministrativestaffphysicalqualityandteamworkability.
2)ProfessionaltrainingProfessionalleaderswithspecificdutieswouldchoosebooksforgeneraladministrativestaffforself-studyduringtheyear;generaladministrativestaffshouldsubmitreaderresponseattheendoftheyearandmakesuggestionsinthecompany’sdevelopmentonthebasisoftheirownwork.Encouragingeligiblegeneraladministrativestafftoattenduniversitycorrespondence,self-studyexamination,MBAorotherfurthereducationformasterdegree;organizeprofessionaladministrativestaff,involvedinhumanresources,finance,facility,safetyandtechnologyqualityetc.,toattendvocationalqualificationexaminationforprofessionalcertificate.Basedonpersonnelwork,attendingspecialtrainingsuchassafety,technology,facility,finance,humanresource,legal,tourism,salesandintegratedmanagementetc.,whichareorganizedbyspecialmanagementdepartment.
③Front-lineWorkersinProductionandTourismSystem
1)GeneraltrainingAttendingcommon-sensegeneraltrainingincludingcompanyculture,regulatoryframeworkandvariousliquorproductsknowledge;reinforcingtrainingintheaspectofhumanresourcesmanagement.
2)ProfessionaltrainingForspecialtypesofworksuchaselectrician,coolerman,forkliftdriver,assembler,touristguide,individualizationproductdesignerandsoon,organizingthemtoattendtrainingwhichcanimproveprofessionalskillandoperationlevel.Accordingtodifferenttypesofwork,organizingoneortwojobskillcompetitionsduringtheyeartopopularizeprofessionalknowledgeandsafetyknowledgeofdifferentpositionstorelevantemployeesthroughedutainment,meanwhile,toenrichtheirspirituallife.Attendingspecialtrainingatleasttwiceayearsuchassafety,technology,facility,comprehensivemanagementetc.whichareorganizedbythecompany.④MarketingPersonnel
1)GeneraltrainingIndependentlystudyingmarketingtextbooks,mainlyfocusingon‘Growth’,aswellastrainingmaterialsincludingthecompany’srelatedmanagementsystem,productionknowledge,salesresponsibilitysystemetc..
2)ProfessionaltrainingProfessionallecturersfromPioneerTrainingInstitutewouldbeemployedtothecompanyorthroughremoteinternetvideostogivelecturesaboutsuccessfulliquorcases,currenteconomictrendresearchfordomesticandforeignwineindustryandothertopics.
Strengtheningthetrainingforcitymarketingmanagers.ThecompanyhasestablishedPioneerTrainingInstitute,recruitedtalentswithwell-knownwinerelatedprofessionaloverseasstudyexperiencesandextensivewineknowledgeasfull-timelectures.Providingprofessionalwineknowledge,tastingknowledgeandwinetastingetiquettetrainingtothecompany’sinternalmanagementandsalesstaffs.Forbusinessdirectorsandotherpersonnel,eachmarketingmanagementcompanyshouldconveneallmarketingpersonneltocarryoutmarketingtrainingandsharingthroughmonthlyvideoconferences,onlinesharing,WeChatinteraction,on-sitemeetings,etc.,soastomakeprogresstogether.⑤NewEntryUniversityStudents
1)Seniorandmiddle-leveladministrativestaffinthecompanywouldbeinvitedtotrainundergraduateforenterpriseculture,regulatoryframework,safetyproduction,productquality,marketingstrategy,emolumentandevaluationsystemandsooninorderfortheseundergraduatetounderstandthecompany’sconditionsintheshortesttime.
2)Professionallecturerswouldbeemployedtoconductexteriortrainingcoursestoundergraduate,suchasroletransition,workplaceetiquetteandteamcooperationandsoon.
(3)Laboroutsourcing?Available?Notavailable
X.CorporateGovernance
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)AboutsupervisorandboardofsupervisorsTheCompanystrictlyelectedallsupervisorsinlightoftheproceduresstipulatedintheCorporationActandArticlesofAssociations.Atpresent,boardofsupervisorshasthreepeopleamongwhichonesupervisorisrepresentativeforstaff.Thenumberandcompositionofboardofsupervisormeettherequirementsofregulationsandlaws.AllsupervisorsoftheCompanycouldfollowtherequirementofRulesofBoardofSupervisors’Procedure,insisttheprincipleofresponsibilitytoallshareholders,seriouslyperformtheirduties,effectivelysuperviseandpresenttheirindependentopinionsonimportantissues,interrelateddeals,financialstatus,thedutyperformanceofdirectorsandmanagersoftheCompany.
(5)Aboutperformanceevaluationandincentivesystem
Theengagementofmanagerswasopenandtransparent,andaccordedwithlawsandregulations.TheCompanyhasestablishedandgraduallyimprovedtheperformanceevaluationstandardandformedefficientincentivesystem,soastoensurethesalaryofstafftobelinkedwithworkperformance.
(6)AboutstakeholdersTheCompanycouldfullyrespectandsafeguardthelegalrightsofthepartywithrelevantbenefit,cooperateactivelywiththestakeholders,jointlydrivetheCompanytodevelopcontinuallyandstably,paygreatattentiontotheissuessuchaslocalenvironmentalprotectionandpublicutilitiesetc.,andfullyassumetheduesocialresponsibility.
(7)AbouttheinformationdisclosureandtransparencyTheCompanyhasappointedtheboardsecretarytoberesponsibleastheheadofinvestorrelationmanagementincludinginformationdisclosure,investorrelationsmanagementandreceptionofshareholders’visitandconsultation.TheCompanyhasalsoassignedChinaSecuritiesNewspaper,SecuritiesTimes,HonkongCommercialDailyandwebsitehttp://www.cninfo.com.cn/todiscloseinformation,punctually,accuratelyandtrulydisclosedanyinformationinthelightofrequirementofrelevantlawsandrules,andalsoensuredallshareholderstohavesameopportunitytoacquireanyinformation.InordertofurtherperfecttheCompany’sgovernancesystem,duringthereportperiod,theCompanyformulatedandimprovedthemanagementsystemsincludingThree-yearPlanforWineandBrandyRawMaterialsandBulkWines,OptionsontheConstructionoftheWinemakerTeamofChangyuCompanyandsoon.WhetherornotthereissignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandthenormativedocumentsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.□Yes?NoThereisnosignificantvariancebetweentheCompany’sactualsituationofcorporategovernanceandthenormativedocumentsaboutlistedcompanygovernanceissuedbyChinaSecuritiesRegulatoryCommission.
2.Relativetothecontrollingshareholder,independenceoftheCompanyonbusiness,personnel,assets,organizationandfinance
(1)PersonnelArrangementTheCompany’sgeneralmanager,deputygeneralmanagersandotherseniorofficers,allofwhomwerepaidbytheCompanyanddidnotholdanyconcurrentadministrativeranksinthecontrollingunits.TheCompanywasentirelyindependentinpersonnelarrangement,conclusionandadjustmentoflaborcontractsthankstoitssoundandindependentsystemforlabor,personalandsalarymanagement.
(2)Assets:
TangibleassetsandIntangibleassetsincludingtrademark,industrialpropertyrightandnon-patenttechnologieswereallclearlydividedbetweentheCompanyandthecontrollingshareholders,andalllegalformalitieswerecompleted.Asanindependentlegalentity,theCompanyoperatesindependentlyinaccordancewiththelaw,anddoesnotprovideanyformofguaranteewithitsassetsforshareholders’orindividuals’liabilitiesorotherlegalornaturalpersons.Duetothehistoricalissues,theownershipoftrademarkssuchas“张裕”(Changyu)
thattheCompanyispermittedtousethatarestillremainedwiththecontrollingshareholder.Exceptforaverysmallnumberoftrademarkssuchas“张裕”(Changyu),mostofthetrademarksusedbytheCompanyhaveownershiprightsthatensurestheindependenceandcompletenessoftheCompany’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
□Available?Notavailable
4.Informationfortheshareholders’meetingandinterimshareholders’meetingheldduringthereportperiod
(1)Informationfortheshareholders’meetingduringthereportperiod
Session
| Session | Meetingtype | Participationratioofinvestors | Conveningdate | Disclosuredate | DisclosureIndex |
| 2019AnnualShareholders’Meeting | Annualshareholders’Meeting | 58.32% | 2020.05.27 | 2020.05.28 | http://www.cninfo.com.cnResolutionAnnouncementof2019AnnualShareholders’Meeting(Announcementno.:2020-Temporary25) |
| 2020FirstInterimShareholders’Meeting | InterimShareholders’Meeting | 58.33% | 2020.06.19 | 2020.06.20 | http://www.cninfo.com.cnResolutionAnnouncementof2020FirstInterimShareholders’Meeting(Notificationno.:2020-Temporary30) |
(2)Requestforconveninginterimshareholders’meetingbypriorityshareholdersowingrecoveredvotingright□Available?Notavailable
5.Performanceofindependentdirectorsduringthereportperiod
(1)Attendanceofindependentdirectorsfortheboardofdirectorsandtheshareholders’meeting
Attendanceofindependentdirectorsfortheboardofdirectors
| Attendanceofindependentdirectorsfortheboardofdirectors | |||||||
| Name | Requiredattendancetime | Personalattendance | Communicationattendance | Authorizedattendance | Absence | Whetherornottoattendthemeetingspersonallyforsuccessivetwice | Attendancetimefortheshareholders’meeting |
| LuoFei | 5 | 2 | 3 | 0 | 0 | No | 0 |
| LiuHuirong | 5 | 2 | 3 | 0 | 0 | No | 0 |
| LiuQinglin | 5 | 1 | 3 | 1 | 0 | No | 0 |
| DuanChangqing | 5 | 2 | 3 | 0 | 0 | No | 0 |
| WangZhuquan | 2 | 1 | 1 | 0 | 0 | No | 0 |
| YuRenzhu | 3 | 1 | 2 | 0 | 0 | No | 1 |
ExplanationforfailedtopersonallyattendtheBoardofDirectors’meetingsforsuccessivetwotimesDuringthereportperiod,therewerenoindependentdirectorswhodidnotattendtheshareholders’meetingsinpersonfortwoconsecutivetimes.
(2)AnyobjectionsfortheCompany’sprojectsfromtheindependentdirectorsWhetherornottheindependentdirectorsraisedanyobjectionfortheCompany’sprojects
□Yes?NoDuringthereportperiod,theindependentdirectorsdidnotraiseanyobjectionsfortheCompany’sprojects.
(3)Otherexplanationsonindependentdirectors’performanceWhetherornottheindependentdirectors’propositionsareacceptedbytheCompany?Yes□NoExplanationonacceptanceorrefusaloftheindependentdirectors’propositionstotheCompanyDuringthereportperiod,theindependentdirectorssuggestedtheCompanytocommunicatewiththecontrollingshareholderontheintegrationoftourismbusinessandstrivetoexpandandstrengthenthetourismindustry.TheCompanyhasadoptedthesuggestionsoftheindependentdirectors,andacquiredthetourismbusinessownedbythecontrollingshareholder.
6.PerformanceofthespecialcommitteesundertheBoardofDirectorsduringthereportperiod
①AuditingCommittee:Duringthereportperiod,theCompany’sauditingCommitteeconductedanex-ante,in-process,andpost-eventreviewtorelatedannualreportauditworkandmaderelevantarrangements.TheauditingCommitteebelievedthat2019annualfinancialstatementsissuedbytheCompanymettherequirementofAccountingStandardsforBusinessEnterprisesandtrulyandfairlyreflectedtheassetsandliabilitiesconditionuptoDecember
st
,2019aswellas2019annualbusinessperformanceandcashflow.TherewerenounsolvedmajordivergencesinaccountingandauditingormajorriskissuesaffectingtheCompany'smanagement.TheCompanyoperatedsteadilyandhadtheabilityofcontinuousoperations.Proposalsincluding2019AnnualSelf-assessmentReportonInternalControl,Draftproposalon2019AnnualProfitDistribution,AppointingCertifiedPublicAccountantsFirm,ChangeinAccountingPolicy，2019AnnualReport,2020Semi-annualReportand2020AnnualAuditPlanweredeliberated.Auditingcommitteepassedabove-mentionedproposalsandsubmittedtherelatedproposalstoboardofdirectorsfordeliberation.
②EmolumentCommittee:EmolumentCommitteeundertheCompany’sboardofdirectorsisresponsibleforassessmentoftheeconomyresponsibilitiesofthedirectorsandtheseniorexecutiveswhoreceivesalariesfromtheCompanyandexaminationofthesalarypolicyandschemedesignedfortheCompany’sdirectorsandseniorexecutives.Duringthereportperiod,theCompanyheldEmolumentCommitteemeetingtwotimesanddeliberatedandpassedtheProposalon2019AnnualPerformanceAssessmentResultsoftheCompany’sSeniorExecutives,ProposalonAdjustmentintheCompany’s2020AnnualPerformanceCompensationAssessmentMethodforSeniorExecutivesandProposalontheElectionoftheConveneroftheCompensationCommittee.ThemeetingconsideredthatallthecontentsoftheProposalon2019AnnualPerformanceAssessmentResultsoftheCompany’sSeniorExecutivessubmittedtothemeetingdeliberationbytheCompanyareinlinewiththerelevantprovisionsoftheCompany,andtheadjustmentoftheCompany’s2020AnnualPerformanceCompensationAssessmentMethodforSeniorExecutivesisinlinewiththeactualsituationoftheindustryandtheCompany,inwhichtheadjustedperformanceappraisalismorescientificandreasonablethatcouldbetterrestrainandmotivateseniormanagers.Themeetingagreedtotheaboveproposalsandsubmittedthemtotheboardofdirectorsfordeliberation.Mr.LiuQinglinwaselectedastheconveneroftheRemunerationCommitteeinthismeeting.Duringthereportperiod,theBoardofDirectors’EmolumentCommitteealsoexaminedthe2019annualpayrollrecordsofthedirectorsandtheseniormanagerswhoreceivesalariesfromtheCompanyandbelievesthatthesalariesoftheCompany’sdirectors,supervisorsandseniormanagersreceivedfromtheCompanyisstrictlyassessedanddeliveredbasedontheCompany’seconomicresponsibilityassessmentsystem.ThesalariesdisclosedbytheCompanyareinconformitywiththeactuallypaidamount.
7.TheworkoftheBoardofSupervisorsWhetherornottheBoardofSupervisorsfoundanyexistencerisktotheCompanyinoversightactivitiesduringthereportperiod
□Yes?NoTheBoardofSupervisorshasnoobjectionstosupervisionmattersduringthereportperiod.
8.PerformanceEvaluationandIncentivesituationsofSeniorManagementTheCompanyhasalreadyestablishedasoundsystemforevaluationofachievementofseniormanagementandtherelatedincentivesystemwhichlinkedtherewardwiththeCompany’sbenefitandpersonalachievement.TheEmolumentCommitteeunderBoardofDirectors
assumedtheresponsibilityofstipulatingthepolicyandappraisingtheschemeforsalariesandrewards.BasedontheCompany’sannualbusinessplanninggoals,thiscommitteeexaminedseniorpersonalsandalsotheirresponsiblesubsidiariesordepartmentsaccordingtotheirmanagementachievementandindexandtooktheseascriterionofawardsorpenalties.Duringthereportperiod,becauseofnotfinishingtheannualbusinessplandeliberatedandpassedintheBoardofDirectors’meetingatthebeginningoftheyear,thetotalsalariesandrewardsoftheseniormanagementhavedroppedsignificantlyfromthatoflastyear.
9.InternalControl
(1)Specificsituationsforsignificantdefectsoftheinternalcontrolfoundduringthereportperiod□Yes?No
(2)Self-assessmentreportoninternalcontrol
Disclosuredateforfulltextoftheinternalcontrolself-assessmentreport
| Disclosuredateforfulltextoftheinternalcontrolself-assessmentreport | 2021.04.28 | ||
| Disclosureindexforfulltextoftheinternalcontrolself-assessmentreport | 2020AnnualSelf-AssessmentReportonInternalControldisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril28th,2021 | ||
| PercentageoftotalunitassetsincludedinscopeoftheassessmentaccountingfortheCompany’stotalassetsofconsolidatedfinancialstatements | 89.05% | ||
| PercentageofunitoperatingincomeincludedinscopeoftheassessmentaccountingfortheCompany’soperatingincomeofconsolidatedfinancialstatements | 93.41% | ||
| 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;?Failureto | Significantdefects:Anysituationslistedbelowappears,itcanberegardedassignificantdefects.?Operation:Unabletoachievealloperationtargetorkeybusinessindex,widelyoutofbudgetinvariousaspects.?Safetyaccidenteffects:Causenolessthanonepersondeath,ormorethan3personseriousinjuries.?Majornegativeeffects:Negativeinformationfrequentlyappearsinthemediaswithinvolvingawidescopeintheinternationalandnationalmainstreammedia.?Environmenteffects:Createirreparabledamagestoenvironment,andcausemassivepubliccomplains.Majordefects:Anysituationslistedbelowappears,itcanberegardedasmajordefects.?Operation:Unabletoachievepartlyoperationtarget,abigmarginoutofbudgetinvariousaspects.?Safetyaccidenteffects:Withoutreachingthepersonlossorthenumberofseriousinjuryofsignificantdefects.?Majornegativeeffects:Negativenewsappearsinthemediawithinfluencingawidescopeintheprovincialmainstreammedia.?Environmenteffects:Causeheavyenvironmentdamagesandmassivepubliccomplains,oughttocarryoutthesignificantremedialmeasures.Generaldefects:Anysituationslistedbelowappears,itcanberegardedasgeneraldefects.?Operation:Othereffectsunabletoconstitutethesignificantdefectsormajordefects.?Safetyaccidenteffects:Personalinjurylessthanthequantitativestandardsofmajordefects.?Majornegativeeffects:Otherdefectsunable | |
setupcorrespondingcontrolmechanismortocarryoutandtakecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects.
| setupcorrespondingcontrolmechanismortocarryoutandtakecorrespondingcompensatingcontrolfortheaccountingtreatmentswithirregularandspecialdeal;?Negativenewsappearsinthemediawithinfluencingawidescope;?Oneormoredefectsexistinthecontrolduringtheprocessoftheendingfinancialreport,andthetargetofachievingtruthfulnessandintegralitycannotbereasonablyguaranteedinthefinancialreport;?Generaldefectsrefertotheothercontroldefects,whichdonotconstitutethesignificantandmajordefects. | toconstitutethesignificantdefectsormajordefects.?Environmenteffects:Otherenvironmenteffectsunabletoconstitutethesignificantdefectsormajordefects. | |
| Quantitativecriterion | Fortotalassets/Owner’sequity:?Significantdefects:misstatements≧1%?Majordefects:0.5%≦misstatements<1%?Generaldefects:misstatements<0.5%Foroperationrevenue:?significantdefects:misstatements≧1%?Majordefects:0.5%≦misstatements<1%?Generaldefects:misstatements<0.5%Forpretaxprofit:?Significantdefects:misstatements≧5%?Majordefects:2%≦misstatements<5%?Generaldefects:misstatements<2% | Fordirectpropertyloss:?Significantdefects:MorethanCNY10million?Majordefects:CNY1million-CNY10million(includingCNY1million)?Generaldefects:LessthanCNY1million |
| Numberofsignificantdefectinfinancialreport | 0 | |
| Numberofsignificantdefectinnon-financialreport | 0 | |
| Numberofmajordefectinfinancialreport | 0 | |
| Numberofmajordefectinnon-financialreport | 0 | |
10.Internalcontrolauditreport?Available□Notavailable
| Auditopinionsoftheinternalcontrolauditreport | |
| WebelievethatYantaiChangyuPioneerWineCo.,Ltd.kepteffectiveinternalcontroltofinancialreportinallsignificantaspectsinaccordancewithGeneralCriteriaofCompany’sInternalControlandotherrelatedrulesonDecember31st,2020. | |
| Disclosureoftheinternalcontrolauditreport | Disclosure |
| Disclosuredateforthefulltextoftheinternalcontrolauditreport | April28th,2021 |
| Disclosureindexforthefulltextoftheinternalcontrolauditreport | 2020AnnualSelf-AssessmentReportonInternalControldisclosedonSecuritiesTimes,ChinaSecuritiesJournalandwww.cninfo.com.cnbytheCompanyonApril28th,2021. |
| Opiniontypeoftheinternalcontrolauditreport | Standardwithoutreservedopinion |
| Whetherornotexistssignificantdefectsinnon-financialreports | No |
Whetherornottheaccountingfirmissuednon-standardopinionsfortheauditreportofinternalcontrol
□Yes?NoWhethertheauditreportofinternalcontrolissuedbytheaccountingfirmisinconsistencywiththeself-assessmentreportoftheboardofdirectors?Yes?No
XI.RelatedSituationofCorporationBondsWhethertheCompanyhasthecorporationbondsissuedpubliclyandlistedonthestockexchange,whichhasnotmaturedorhasmaturedbutfailedtofullyredeemonthedateofapprovaloftheannualreportNo
XII.FinancialReport
1.AuditReport
Typeofauditopinion
| Typeofauditopinion | Standardunqualifiedauditopinion |
| Datesignedonauditreport | April26th,2021 |
| Auditagencyname | KPMGHuazhenCertifiedPublicAccountantsCo.,Ltd.(specialgeneralpartnership) |
| AuditreportNo. | KPMGHuazhenShenZiNo.2103362 |
| Certifiedpublicaccountant'sname | Ms.WangTing,Ms.ChaiJing |
YANTAICHANGYUPIONEERWINECOMPANYLIMITED
ENGLISHTRANSLATIONOFFINANCIALSTATEMENTSFORTHEYEAR1JANUARY2020TO31DECEMBER2020IFTHEREISANYCONFLICTBETWEENTHECHINESEVERSIONANDITSENGLISH
TRANSLATION,THECHINESEVERSIONWILLPREVAIL
AUDITOR’SREPORT
KPMGHuazhenShenZiNo.2103362AllShareholdersofYantaiChangyuPioneerWineCompanyLimited:
OpinionWehaveauditedtheaccompanyingfinancialstatementsofYantaiChangyuPioneerWineCompanyLimited(“YantaiChangyu”),whichcomprisetheconsolidatedbalancesheetandcompanybalancesheetasat31December2020,theconsolidatedincomestatementandcompanyincomestatement,theconsolidatedcashflowstatementandcompanycashflowstatement,theconsolidatedstatementofchangesinshareholders’equityandcompanystatementofchangesinshareholders’equityfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedfinancialpositionandcompanyfinancialpositionofYantaiChangyuasat31December2020,andofitsconsolidatedfinancialperformanceandcompanyfinancialperformanceanditsconsolidatedcashflowsandcompanycashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceofthePeople’sRepublicofChina.BasisforOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditingforCertifiedPublicAccountants(“CSAs”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentofYantaiChangyuinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants(“theCode”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2103362KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsfortheyear.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
RecognitionofSalesRevenuefromDistributors
| RecognitionofSalesRevenuefromDistributors | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”22and“V.Notestotheconsolidatedfinancialstatements”36. | |
| KeyAuditMatters | HowtheMatterwasAddressedinOurAudit |
| TheprincipalactivitiesofYantaiChangyuanditssubsidiaries(hereinafterreferredtoas“YantaiChangyuGroup”)includemanufactureandsalesofwine,brandyandsparklingwine.TherevenueofYantaiChangyuGroupismainlyderivedfromsalesofdistributors.AlldistributortransactiontermsadopttheunifiedtransactiontermsformulatedbyYantaiChangyuGroup.Startingfrom1January2020,YantaiChangyuhasimplementedtheAccountingStandardsforBusinessEnterprisesNo.14“Revenue(Revised)"andsalesrevenueisrecognisedwhenthecustomerobtainscontroloftherelevantgoods.Basedonthecontractualagreementandthebusinessarrangement,YantaiChangyusellsproductstodistributorsandthetransferofproductownershipiscompletedandtherevenueisrecognisedwhenthegoodsaredeliveredtodistributorsandsignedforacceptance.AsrevenueisoneofthekeyperformanceindicatorsofYantaiChangyuGroup,thereisaninherentriskthatthemanagementwillmanipulaterevenueinordertoachievespecificperformanceobjectivesorexpectations.Therefore,werecognisesalesrevenuefromdistributorsasakeyauditmatter. | Ourauditprocedurestoevaluaterevenuerecognitionofsalesrevenuefromdistributorsincludedthefollowing:?UnderstandandevaluatetheManagement’sdesignandoperationeffectivenessofkeyinternalcontrolsrelatedtodistributorsalesrevenuerecognition;?SelectingthesalescontractsYantaiChangyusignedwithdistributorsinordertoexaminewhetherYantaiChangyuhasadoptedtheunifiedtransactionterms,andevaluatewhethertheaccountingpolicyofrevenuerecognitionmeetstherequirementsoftheAccountingStandardsforBusinessEnterprises;?Onasamplingbasis,reconciletherevenuerecordedfortheyeartorelevantsupportingfilessuchasrelevantordersandsigneddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinaccordancewiththeaccountingpolicyofYantaiChangyu; |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2103362KeyAuditMatters(continued)
RecognitionofSalesRevenuefromDistributors(continued)
| RecognitionofSalesRevenuefromDistributors(continued) | |
| Refertotheaccountingpoliciessetoutinthenotestothefinancialstatements“III.Significantaccountingpoliciesandaccountingestimates”22and“V.Notestotheconsolidatedfinancialstatements”36. | |
| TheKeyAuditMatters | Howthematterwasaddressedinouraudit |
| ?Onasamplingbasis,reconcilethesalestransactionbeforeandafterbalancesheetdatetorelevantsupportingfilessuchasrelevantorders,signeddeliverynotes,etc.toevaluatewhetherrevenueisrecognisedinappropriateaccountingperiod;?Selectingthebalancesofcurrentaccountsonbalancesheetdateandtheamountofsalestransactionfortheyeartoperformconfirmationprocedures;?Checkthesalesrecordafterthebalancesheetdatetoidentifysignificantsalesreturnsandcheckrelevantsupportingfiles(Ifapplicable)inordertoevaluatewhetherrelevantrevenueisrecordedintheappropriateaccountingperiod;?Selectrevenueaccountingentriesthatmeetspecificriskcriteriaandcheckrelatedsupportingdocuments. | |
AUDITOR’SREPORT(continued)
KPMGHuazhenShenZiNo.2103362
OtherInformationManagementofYantaiChangyuisresponsiblefortheotherinformation.Theotherinformationcomprisesalltheinformationincludedinthe2020annualreport,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.2103362Auditor’sResponsibilitiesfortheAuditoftheFinancialStatement(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,basisofaccountingand,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.2103362
Auditor’sResponsibilitiesfortheAuditoftheFinancialStatement(continued)Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependenceand,whereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
KPMGHuazhenLLPCertifiedPublicAccountantsRegistered(Stamp)inthePeople’sRepublicofChina
WangTing(EngagementPartner)(Signatureandstamp)
Beijing,ChinaChaiJing
(Signatureandstamp)Date:26April2021
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2020
(ExpressedinRenminbiYuan)
Note
| Note | 31December2020 | 31December2019 | 31January2019 | |
| (Restated) | (Restated) | |||
| Assets | ||||
| Currentassets | ||||
| Cashatbankandonhand | V.1 | 1,194,214,929 | 1,597,410,775 | 1,505,126,258 |
| Accountsreceivable | V.2 | 183,853,362 | 265,730,156 | 230,711,055 |
| Receivablesunderfinancing | V.3 | 338,090,187 | 317,270,229 | 288,998,115 |
| Prepayments | V.4 | 71,296,416 | 67,764,156 | 4,682,354 |
| Otherreceivables | V.5 | 22,428,956 | 24,350,228 | 22,815,697 |
| Inventories | V.6 | 2,945,548,651 | 2,901,651,555 | 2,748,419,225 |
| Othercurrentassets | V.7 | 234,118,715 | 269,002,321 | 259,602,897 |
| Totalcurrentassets | 4,989,551,216 | 5,443,179,420 | 5,060,355,601 | |
| Non-currentassets | ||||
| Long-termequityinvestments | V.8 | 48,263,507 | 43,981,130 | - |
| Available-for-salefinancialassets | - | - | 467,251 | |
| Investmentproperties | V.9 | 27,057,730 | 29,714,586 | 31,572,489 |
| Fixedassets | V.10 | 5,724,935,846 | 5,943,969,099 | 5,799,345,351 |
| Constructioninprogress | V.11 | 635,495,152 | 567,478,833 | 759,296,591 |
| Bearerbiologicalassets | V.12 | 192,173,536 | 202,425,286 | 209,266,373 |
| Intangibleassets | V.13 | 660,989,065 | 652,543,848 | 655,663,382 |
| Goodwill | V.14 | 132,938,212 | 141,859,193 | 165,199,111 |
| Long-termdeferredexpenses | V.15 | 314,465,855 | 280,478,194 | 247,942,506 |
| Deferredtaxassets | V.16 | 206,241,275 | 265,551,343 | 288,561,790 |
| Othernon-currentassets | V.17 | 170,370,147 | 193,674,320 | - |
| Totalnon-currentassets | 8,112,930,325 | 8,321,675,832 | 8,157,314,844 | |
| Totalassets | 13,102,481,541 | 13,764,855,252 | 13,217,670,445 |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2020(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2020 | 31December2019 | 31January2019 | |
| (Restated) | (Restated) | |||
| Liabilitiesandshareholders’equity | ||||
| Currentliabilities | ||||
| Short-termloans | V.18 | 689,090,715 | 754,313,744 | 688,002,410 |
| Accountspayable | V.19 | 484,347,958 | 570,849,779 | 713,641,568 |
| Advancepaymentsreceived | V.20 | - | 128,907,605 | 232,793,208 |
| Contractliabilities | V.21 | 135,073,280 | - | - |
| Employeebenefitspayable | V.22 | 188,779,911 | 240,801,344 | 216,787,066 |
| Taxespayable | V.23 | 213,412,813 | 375,620,295 | 129,280,966 |
| Otherpayables | V.24 | 386,105,526 | 456,480,389 | 612,334,263 |
| Othercurrentliabilities | V.25 | 14,820,653 | - | - |
| Non-currentliabilitiesduewithinoneyear | V.26 | 133,311,890 | 150,826,221 | 152,940,786 |
| Totalcurrentliabilities | 2,244,942,746 | 2,677,799,377 | 2,745,780,267 | |
| Non-currentliabilities | ||||
| Long-termloans | V.27 | 200,352,968 | 128,892,501 | 156,480,662 |
| Long-termpayables | V.28 | 86,000,000 | 191,000,000 | 225,000,000 |
| Deferredincome | V.29 | 52,653,609 | 70,701,288 | 86,227,293 |
| Deferredtaxliabilities | V.16 | 12,022,613 | 14,691,424 | 22,010,647 |
| Othernon-currentliabilities | V.30 | 2,078,971 | 7,645,777 | 7,234,853 |
| Totalnon-currentliabilities | 353,108,161 | 412,930,990 | 496,953,455 | |
| Totalliabilities | 2,598,050,907 | 3,090,730,367 | 3,242,733,722 |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedbalancesheetasat31December2020(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2020 | 31December2019 | 31January2019 | |
| (Restated) | (Restated) | |||
| Liabilitiesandshareholders’equity(continued) | ||||
| Shareholders’equity | ||||
| Sharecapital | V.31 | 685,464,000 | 685,464,000 | 685,464,000 |
| Capitalreserve | V.32 | 524,968,760 | 642,775,360 | 643,680,379 |
| Othercomprehensiveincome | V.33 | 576,129 | (4,235,583) | 2,965,377 |
| Surplusreserve | V.34 | 342,732,000 | 342,732,000 | 342,732,000 |
| Retainedearnings | V.35 | 8,714,091,755 | 8,735,513,044 | 8,013,924,148 |
| TotalequityattributabletoshareholdersoftheCompany | 10,267,832,644 | 10,402,248,821 | 9,688,765,904 | |
| Non-controllinginterests | 236,597,990 | 271,876,064 | 286,170,819 | |
| Totalowners’equity | 10,504,430,634 | 10,674,124,885 | 9,974,936,723 | |
| Totalliabilitiesandshareholders’equity | 13,102,481,541 | 13,764,855,252 | 13,217,670,445 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2020(ExpressedinRenminbiYuan)
Note
| Note | 31December2020 | 31December2019 | 31January2019 | |
| (Restated) | (Restated) | |||
| Assets | ||||
| Currentassets | ||||
| Cashatbankandonhand | 267,548,326 | 710,505,269 | 624,588,809 | |
| Accountsreceivable | - | 1,988,326 | 1,447,973 | |
| Receivablesunderfinancing | XV.1 | 13,920,000 | 41,679,635 | 39,885,254 |
| Prepayments | 171,709 | 776,539 | 227 | |
| Otherreceivables | XV.2 | 580,131,798 | 586,424,958 | 1,025,643,356 |
| Inventories | 482,442,935 | 434,007,808 | 385,154,740 | |
| Othercurrentassets | 24,842,325 | 39,130,466 | 24,704,844 | |
| Totalcurrentassets | 1,369,057,093 | 1,814,513,001 | 2,101,425,203 | |
| Non-currentassets | ||||
| Long-termequityinvestments | XV.3 | 7,599,778,880 | 7,432,422,621 | 7,420,803,069 |
| Investmentproperties | - | 29,714,586 | 31,572,489 | |
| Fixedassets | 270,692,477 | 261,137,072 | 265,311,274 | |
| Constructioninprogress | 2,865,243 | - | 6,311,701 | |
| Bearerbiologicalassets | 115,103,753 | 121,414,096 | 125,002,793 | |
| Intangibleassets | 80,789,731 | 64,864,913 | 67,244,066 | |
| Deferredtaxassets | 18,285,685 | 16,255,870 | 24,194,967 | |
| Othernon-currentassets | 1,530,700,000 | 1,427,700,000 | 972,700,000 | |
| Totalnon-currentassets | 9,618,215,769 | 9,353,509,158 | 8,913,140,359 | |
| Totalassets | 10,987,272,862 | 11,168,022,159 | 11,014,565,562 |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2020(continued)(ExpressedinRenminbiYuan)
Note
| Note | 31December2020 | 31December2019 | 31January2019 | |
| (Restated) | (Restated) | |||
| Liabilitiesandshareholders’equity | ||||
| Currentliabilities | ||||
| Short-termloans | 150,000,000 | 150,000,000 | 150,000,000 | |
| Accountspayable | 76,470,081 | 63,655,240 | 132,704,304 | |
| Employeebenefitspayable | 67,808,910 | 70,445,847 | 72,345,179 | |
| Taxespayable | 9,123,959 | 6,052,456 | 13,111,431 | |
| Otherpayables | 521,505,947 | 660,149,563 | 607,974,519 | |
| Totalcurrentliabilities | 824,908,897 | 950,303,106 | 976,135,433 | |
| Non-currentliabilities | ||||
| Deferredincome | 5,507,708 | 9,176,315 | 12,343,972 | |
| Othernon-currentliabilities | 1,164,471 | 3,146,707 | 2,710,575 | |
| Totalnon-currentliabilities | 6,672,179 | 12,323,022 | 15,054,547 | |
| Totalliabilities | 831,581,076 | 962,626,128 | 991,189,980 |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanybalancesheetasat31December2020(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 31December2020 | 31December2019 | 31January2019 | |
| (Restated) | (Restated) | |||
| Liabilitiesandshareholders’equity(continued) | ||||
| Shareholders’equity | ||||
| Sharecapital | 685,464,000 | 685,464,000 | 685,464,000 | |
| Capitalreserve | 560,182,235 | 557,222,454 | 557,222,454 | |
| Surplusreserve | 342,732,000 | 342,732,000 | 342,732,000 | |
| Retainedearnings | 8,567,313,551 | 8,619,977,577 | 8,437,957,128 | |
| Totalowners’equity | 10,155,691,786 | 10,205,396,031 | 10,023,375,582 | |
| Totalliabilitiesandshareholders’equity | 10,987,272,862 | 11,168,022,159 | 11,014,565,562 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2020(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| I.Operatingincome | V.36 | 3,395,402,001 | 5,074,025,899 |
| Less:Operatingcost | V.36 | 1,503,877,407 | 1,877,658,738 |
| Taxesandsurcharges | V.37 | 203,789,274 | 269,888,681 |
| Sellinganddistributionexpenses | V.38 | 788,252,485 | 1,088,305,385 |
| Generalandadministrativeexpenses | V.39 | 290,646,466 | 311,904,656 |
| Researchanddevelopmentexpenses | 4,531,418 | 6,041,116 | |
| Financialexpenses | V.40 | 20,441,713 | 35,302,229 |
| Including:Interestexpenses | 32,890,621 | 41,570,794 | |
| Interestincome | 14,247,274 | 12,327,441 | |
| Add:Otherincome | V.41 | 73,063,620 | 77,370,841 |
| Investment(losses)/income | V.42 | (2,217,623) | 5,112,733 |
| Including:Lossesfrominvestmentinjointventuresandassociates | (2,217,623) | (1,120,928) | |
| Creditreversal/(losses) | V.43 | 4,348,309 | (6,678,498) |
| Impairmentlosses | V.44 | (3,215,978) | (20,552,916) |
| (Losses)/Gainsfromdisposalofassets | V.45 | (1,180,655) | 39,015 |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2020(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| II.Operatingprofit | 654,660,911 | 1,540,216,269 | |
| Add:Non-operatingincome | V.46 | 11,908,510 | 11,021,303 |
| Less:Non-operatingexpenses | V.46 | 1,702,858 | 3,634,552 |
| III.Totalprofit | 664,866,563 | 1,547,603,020 | |
| Less:Incometaxexpenses | V.47 | 191,804,500 | 405,597,320 |
| IV.Netprofit | 473,062,063 | 1,142,005,700 | |
| (1)Netprofitclassifiedbycontinuityofoperations: | |||
| 1.Netprofitfromcontinuingoperations | 473,062,063 | 1,142,005,700 | |
| 2.Netprofitfromdiscontinuedoperations | - | - | |
| (2)Netprofitclassifiedbyownership: | |||
| 1.NetprofitattributabletoownersoftheCompany | 470,860,587 | 1,141,367,296 | |
| 2.Non-controllinginterests | 2,201,476 | 638,404 | |
| V.Othercomprehensiveincome,netoftax | 5,171,635 | (8,542,792) | |
| (1)Othercomprehensiveincome(netoftax)attributabletoshareholdersoftheCompany | 4,811,712 | (7,200,960) | |
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | 4,811,712 | (7,200,960) | |
| (2)Othercomprehensiveincome(netoftax)attributabletonon-controllinginterests | 359,923 | (1,341,832) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedincomestatementfortheyearended31December2020(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| VI.Totalcomprehensiveincomefortheyear | 478,233,698 | 1,133,462,908 | |
| (1)AttributabletoshareholdersoftheCompany | 475,672,299 | 1,134,166,336 | |
| (2)Attributabletonon-controllinginterests | 2,561,399 | (703,428) | |
| VII.Earningspershare: | |||
| (1)Basicearningspershare | V.48 | 0.69 | 1.67 |
| (2)Dilutedearningspershare | V.48 | 0.69 | 1.67 |
Note1:TheGrouphadabusinesscombinationundercommoncontrolin2020.Thenet
profitrealisedbythecombiningpartybeforethecombinationwasRMB10,730,129andthenetprofitrealisedbythecombiningpartyin2019wasRMB11,709,978.ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2020(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| I.Operatingincome | XV.4 | 512,303,553 | 740,856,362 |
| Less:Operatingcost | XV.4 | 452,368,512 | 655,504,063 |
| Taxesandsurcharges | 19,841,835 | 25,045,041 | |
| Generalandadministrativeexpenses | 74,929,302 | 86,481,192 | |
| Researchanddevelopmentexpenses | 728,793 | 815,233 | |
| Netfinancialincome | (602,459) | (4,798,485) | |
| Including:Interestexpenses | 4,875,912 | 497,277 | |
| Interestincome | 5,594,285 | 5,843,698 | |
| Add:Otherincome | 5,339,898 | 3,953,002 | |
| Investmentincome | XV.5 | 449,504,721 | 621,620,723 |
| Creditreversal/(losses) | 601,610 | (601,610) | |
| Gainsfromdisposalofassets | - | 22,297 | |
| II.Operatingprofit | 420,483,799 | 602,803,730 | |
| Add:Non-operatingincome | 3,961,267 | 1,840,062 | |
| Less:Non-operatingexpenses | 1,050,415 | 1,118,124 |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanyincomestatementfortheyearended31December2020(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| III.Totalprofit | 423,394,651 | 603,525,668 | |
| Less:Incometaxexpenses | (3,766,123) | 10,226,819 | |
| IV.Netprofit | 427,160,774 | 593,298,849 | |
| (i)Netprofitfromcontinuingoperations | 427,160,774 | 593,298,849 | |
| (ii)Netprofitfromdiscontinuedoperations | - | - | |
| V.Othercomprehensiveincome,netoftax | - | - | |
| VI.Totalcomprehensiveincomefortheyear | 427,160,774 | 593,298,849 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2020(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 3,259,057,195 | 4,698,813,366 | |
| Refundoftaxesandsurcharges | 45,642,498 | 40,944,192 | |
| Proceedsfromotheroperatingactivities | V.49(1) | 81,197,248 | 96,517,766 |
| Sub-totalofcashinflows | 3,385,896,941 | 4,836,275,324 | |
| Paymentforgoodsandservices | 1,095,500,438 | 1,342,960,997 | |
| Paymenttoandforemployees | 529,304,037 | 594,680,599 | |
| Paymentofvarioustaxes | 704,054,796 | 1,127,433,460 | |
| Paymentforotheroperatingactivities | V.49(2) | 551,890,997 | 922,347,908 |
| Sub-totalofcashoutflows | 2,880,750,268 | 3,987,422,964 | |
| Netcashflowsfromoperatingactivities | V.50(1) | 505,146,673 | 848,852,360 |
| II.Cashflowsfrominvestingactivities: | |||
| Proceedsfromdisposalofinvestments | 135,647,402 | 234,632,139 | |
| Investmentreturnsreceived | 1,730,511 | 1,809,786 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 49,200,301 | 6,334,375 | |
| Sub-totalofcashinflows | 186,578,214 | 242,776,300 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 155,918,502 | 281,228,617 | |
| Paymentforacquisitionofinvestments | 83,508,393 | 170,023,444 | |
| Netcashpaidfortheacquisitionofsubsidiariesandotherbusinessunits | V.50(2) | 89,519,789 | - |
| Sub-totalofcashoutflows | 328,946,684 | 451,252,061 | |
| Netcashflowsfrominvestingactivities | (142,368,470) | (208,475,761) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedcashflowstatementfortheyearended31December2020(continued)(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| III.Cashflowsfromfinancingactivities: | |||
| Proceedsfromborrowings | 987,668,379 | 942,134,032 | |
| Sub-totalofcashinflows | 987,668,379 | 942,134,032 | |
| Repaymentsofborrowings | 1,098,773,637 | 939,525,426 | |
| Paymentfordividends,profitdistributionsorinterest | 531,697,065 | 470,955,473 | |
| Paymentforotherfinancingactivities | V.49(3) | 62,966,747 | 11,619,552 |
| Sub-totalofcashoutflows | 1,693,437,449 | 1,422,100,451 | |
| Netcashflowsfromfinancingactivities | (705,769,070) | (479,966,419) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | (1,743,498) | 703,173 | |
| V.Netincreaseincashandcashequivalents | V.50(1) | (344,734,365) | 161,113,353 |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 1,397,399,470 | 1,236,286,117 | |
| VI.Cashandcashequivalentsattheendoftheyear | V.50(3) | 1,052,665,105 | 1,397,399,470 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2020(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| I.Cashflowsfromoperatingactivities: | |||
| Proceedsfromsaleofgoodsandrenderingofservices | 365,804,968 | 737,920,018 | |
| Proceedsfromotheroperatingactivities | 19,507,538 | 211,049,689 | |
| Sub-totalofcashinflows | 385,312,506 | 948,969,707 | |
| Paymentforgoodsandservices | 261,854,964 | 710,601,952 | |
| Paymenttoandforemployees | 65,247,752 | 91,738,062 | |
| Paymentofvarioustaxes | 6,778,231 | 48,817,363 | |
| Paymentforotheroperatingactivities | 139,442,785 | 28,434,079 | |
| Sub-totalofcashoutflows | 473,323,732 | 879,591,456 | |
| Netcashflowsfromoperatingactivities | (88,011,226) | 69,378,251 | |
| II.Cashflowsfrominvestingactivities: | |||
| Proceedsfromdisposalofinvestments | 58,238,750 | 131,133,236 | |
| Investmentreturnsreceived | 450,538,570 | 922,250,025 | |
| Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 131,260 | 1,354,733 | |
| Proceedsfromborrowingstosubsidiaries | 9,000,000 | 8,000,000 | |
| Sub-totalofcashinflows | 517,908,580 | 1,062,737,994 | |
| Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 51,762,211 | 21,417,387 | |
| Paymentforacquisitionofinvestments | 131,408,115 | 138,566,890 | |
| Netcashpaidfortheacquisitionofsubsidiariesandotherbusinessunits | 89,519,789 | - | |
| Cashpaidtosubsidiaries | 112,000,000 | 463,000,000 | |
| Sub-totalofcashoutflows | 384,690,115 | 622,984,277 | |
| Netcashflowsfrominvestingactivities | 133,218,465 | 439,753,717 |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanycashflowstatementfortheyearended31December2020(continued)
(ExpressedinRenminbiYuan)
Note
| Note | 2020 | 2019 | |
| (Restated) | |||
| III.Cashflowsfromfinancingactivities: | |||
| Proceedsfromborrowings | 150,000,000 | 150,000,000 | |
| Sub-totalofcashinflows | 150,000,000 | 150,000,000 | |
| Repaymentsofborrowings | 150,000,000 | 150,000,000 | |
| Paymentfordividendsorinterest | 486,200,712 | 418,400,308 | |
| Sub-totalofcashoutflows | 636,200,712 | 568,400,308 | |
| Netcashflowsfromfinancingactivities | (486,200,712) | (418,400,308) | |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | - | - | |
| V.Netdecrease/(increase)incashandcashequivalents | (440,993,473) | 90,731,660 | |
| Add:Cashandcashequivalentsatthebeginningoftheyear | 623,116,542 | 532,384,882 | |
| VI.Cashandcashequivalentsattheendoftheyear | 182,123,069 | 623,116,542 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equityfortheyearended31December2020
(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 685,464,000 | 642,775,360 | (4,235,583) | 342,732,000 | 8,735,513,044 | 10,402,248,821 | 271,876,064 | 10,674,124,885 | |
| II.Changesinequityduringtheyear | |||||||||
| (1)Totalcomprehensiveincome | - | - | 4,811,712 | - | 470,860,587 | 475,672,299 | 2,561,399 | 478,233,698 | |
| (2)Shareholders’contributions | |||||||||
| Acquisitionsofnon-controllinginterests | - | (28,286,811) | - | - | - | (28,286,811) | (34,679,936) | (62,966,747) | |
| (3)Appropriationofprofits | V.35 | ||||||||
| Distributionstoshareholders | - | - | - | - | (492,281,876) | (492,281,876) | (3,159,537) | (495,441,413) | |
| (4)Businesscombinationundercommoncontrol | VI.(1) | - | (89,519,789) | - | - | - | (89,519,789) | - | (89,519,789) |
| III.Balanceattheendoftheyear | 685,464,000 | 524,968,760 | 576,129 | 342,732,000 | 8,714,091,755 | 10,267,832,644 | 236,597,990 | 10,504,430,634 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedConsolidatedstatementofchangesinshareholders’equityfortheyearended31December2019(ExpressedinRenminbiYuan)
Note
| Note | AttributabletoshareholdersoftheCompany | Non-controllinginterests | Totalshareholders’equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Surplusreserve | Retainedearnings | Sub-total | ||||
| I.Balanceatthebeginningoftheyear | 685,464,000 | 565,955,441 | 2,965,377 | 342,732,000 | 8,008,982,547 | 9,606,099,365 | 284,388,012 | 9,890,487,377 | |
| Add:Changesinaccountingpolicies | III.33 | - | - | - | - | (7,540,537) | (7,540,537) | - | (7,540,537) |
| Businesscombinationundercommoncontrol | - | 77,724,938 | - | - | 12,482,138 | 90,207,076 | 1,782,807 | 91,989,883 | |
| Adjustedbalanceatthebeginningoftheyear | 685,464,000 | 643,680,379 | 2,965,377 | 342,732,000 | 8,013,924,148 | 9,688,765,904 | 286,170,819 | 9,974,936,723 | |
| II.Changesinequityduringtheyear | |||||||||
| (1)Totalcomprehensiveincome | - | - | (7,200,960) | - | 1,141,367,296 | 1,134,166,336 | (703,428) | 1,133,462,908 | |
| (2)Contributionbyowners | |||||||||
| Acquisitionsofnon-controllinginterests | - | (905,019) | - | - | - | (905,019) | (10,714,533) | (11,619,552) | |
| (3)Appropriationofprofits | V.35 | ||||||||
| Distributionstoshareholders | - | - | - | - | (419,778,400) | (419,778,400) | (2,876,794) | (422,655,194) | |
| III.Balanceattheendoftheyear | 685,464,000 | 642,775,360 | (4,235,583) | 342,732,000 | 8,735,513,044 | 10,402,248,821 | 271,876,064 | 10,674,124,885 | |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2020
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 | |
| II.Changesinequityduringtheyear | ||||||
| (1)Totalcomprehensiveincome | - | - | - | 427,160,774 | 427,160,774 | |
| (2)Shareholders’contributions | ||||||
| PurchaseofshareequityofYantaiChangyuCultureDevelopmentCo.,Ltd(“CultureDevelopment”) | VII.1 | - | 2,959,781 | - | - | 2,959,781 |
| (3)Appropriationofprofits | ||||||
| Distributionstoshareholders | - | - | - | (479,824,800) | (479,824,800) | |
| III.Balanceattheendoftheyear | 685,464,000 | 560,182,235 | 342,732,000 | 8,567,313,551 | 10,155,691,786 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedCompanystatementofchangesinshareholders’equityfortheyearended31December2019(continued)
(ExpressedinRenminbiYuan)
Note
| Note | Sharecapital | Capitalreserve | Surplusreserve | Retainedearnings | Totalshareholders’equity | |
| I.Balanceatthebeginningoftheyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 | |
| Add:Changesinaccountingpolicies | III.33 | - | - | - | - | - |
| Adjustedbalanceatthebeginningoftheyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,437,957,128 | 10,023,375,582 | |
| II.Changesinequityfortheyear | ||||||
| 1.Totalcomprehensiveincome | - | - | - | 593,298,849 | 593,298,849 | |
| 2.Appropriationofprofits | ||||||
| Distributionstoshareholders | - | - | - | (411,278,400) | (411,278,400) | |
| III.Balanceattheendoftheyear | 685,464,000 | 557,222,454 | 342,732,000 | 8,619,977,577 | 10,205,396,031 |
ThesefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyon26April2021.
| ZhouHongjiangLegalRepresentative | JiangJianxunThepersoninchargeofaccountingaffairs | GuoCuimeiTheheadoftheaccountingdepartment | (Companystamp) | |||
| (Signatureandstamp) | (Signatureandstamp) | (Signatureandstamp) |
Thenotesonpages106to193formpartofthesefinancialstatements.
YantaiChangyuPioneerWineCompanyLimitedNotestothefinancialstatements
(ExpressedinRenminbiYuanunlessotherwiseindicated)I.Companystatus
YantaiChangyuPioneerWineCo.,Ltd.(the"Company”orthe“JointStockCompany”)was
incorporatedasajointstocklimitedcompanyinaccordancewiththeCompanyLawofthe
People'sRepublicofChina(the"PRC")inareorganisationcarriedoutbyYantaiChangyu
GroupCo.,Ltd.("ChangyuGroup"),inwhichChangyuGroupCompanyinjectedcertain
assetsandliabilitiesinrelationtothebrandy,wine,andsparklingwineproductionandsales
businessestotheCompany.TheCompanyanditssubsidiaries(the"Group")areprincipally
engagedintheproductionandsalesofwine,brandy,sparklingwine,grapegrowingand
acquisition,aswellastravelresourcedevelopment,etc.RegistrationplaceoftheCompany
isYantai,Shandong.HeadquarteroftheCompanyislocatedatNo.56DaMaLu,Zhifu
District,Yantai,Shandong,PRC.
Asat31December2020thetotalsharesissuedbytheCompanyamountsto685,464,000
shares.PleaserefertoNoteV.31indetail.
TheholdingcompanyoftheGroupisChangyuGroupCompany,whichisjointlycontrolledby
YantaiGuoFengInvestmentHoldingLtd,ILLVASARONNOHOLDINGSPA,International
FinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited.
Thefinancialstatementshavebeenauthorisedbytheboardofdirectorson26April2021.
AccordingtotheCompany'sarticlesofassociation,thefinancialstatementswillbereviewed
byshareholdersontheshareholder'smeeting.
Forconsolidationscopeoftheyear,pleaserefertoNoteVII"Equityinotherentities"indetail.
Fordetailofchangesinconsolidationscopeoftheyear,pleaserefertoNoteVI"Changein
consolidationscope".II.Basisofpreparation
Thefinancialstatementshavebeenpreparedonthegoingconcernbasis.
Since1January2019,theGrouphasadoptednewfinancialinstrumentstandardsrevisedby
MOFin2017,includingCAS22—RecognitionandMeasurementofFinancialInstruments.
Since1January2020,theGrouphasadoptednewrevenuestandardsrevisedbyMOFin
2017,includingCAS14—Revenue(SeeNoteIII.33).
TheGrouphasnotadoptedCASNo.21—Leaserevisedin2018respectively.
III.Significantaccountingpoliciesandaccountingestimates1Statementofcompliance
ThefinancialstatementshavebeenpreparedinaccordancewiththerequirementsofAccountingStandardsforBusinessEnterprisesorreferredtoasChinaAccountingStandards(“CAS”)issuedbytheMOF.ThesefinancialstatementspresenttrulyandcompletelytheconsolidatedfinancialpositionandfinancialpositionoftheCompanyasat31December2020,andtheconsolidatedfinancialperformanceandfinancialperformanceandtheconsolidatedcashflowsandcashflowsoftheCompanyfortheyearthenended.Thesefinancialstatementsalsocomplywiththedisclosurerequirementsof“RegulationonthePreparationofInformationDisclosuresbyCompaniesIssuingSecurities,No.15:GeneralRequirementsforFinancialReports”asrevisedbytheChinaSecuritiesRegulatoryCommission(“CSRC”)in2014.2Accountingperiod
Theaccountingperiodisfrom1Januaryto31December.3Operatingcycle
TheCompanytakestheperiodfromtheacquisitionofassetsforprocessingtountilthe
ultimaterealisationofcashorcashequivalentsasanormaloperatingcycle.Theoperating
cycleoftheCompanyis12months.4Functionalcurrency
Renminbi("RMB")isthecurrencyoftheprimaryeconomicenvironmentinwhichthe
Companyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomestic
subsidiarieschooseRMBastheirfunctionalcurrency.Overseassubsidiariesofthe
CompanyadoptEuro,ChileanPesoandAustralianDollarastheirfunctionalcurrenciesonthe
basisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadopts
RMBtoprepareitsfinancialstatements.5Accountingtreatmentsforbusinesscombinationsinvolvingentitiesundercommoncontrol
andnotundercommoncontrol
AtransactionconstitutesabusinesscombinationwhentheGroupobtainscontrolofoneor
moreentities(oragroupofassetsornetassets).Businesscombinationisclassifiedas
eitherbusinesscombinationsinvolvingenterprisesundercommoncontrolorbusiness
combinationsnotinvolvingenterprisesundercommoncontrol.
Foratransactionnotinvolvingenterprisesundercommoncontrol,theacquirerdetermines
whetheracquiredsetofassetsconstituteabusiness.TheGroupmayelecttoapplythe
simplifiedassessmentmethod,theconcentrationtest,todeterminewhetheranacquiredset
ofassetsisnotabusiness.Iftheconcentrationtestismetandthesetofassetsis
determinednottobeabusiness,nofurtherassessmentisneeded.Iftheconcentrationtest
isnotmet,theGroupshallperformtheassessmentaccordingtotheguidanceonthe
determinationofabusiness.
Whenthesetofassetsthegroupacquireddoesnotconstituteabusiness,acquisitioncostsshouldbeallocatedtoeachidentifiableassetsandliabilitiesattheiracquisition?datefairvalues.Itisnotrequiredtoapplytheaccountingofbusinesscombinationdescribedasbelow.
(1)Businesscombinationsinvolvingentitiesundercommoncontrol
Abusinesscombinationinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination,andthatcontrolisnottransitory.Theassetsacquiredandliabilitiesassumedaremeasuredbasedontheircarryingamountsintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweenthecarryingamountofthenetassetsacquiredandtheconsiderationpaidforthecombination(orthetotalparvalueofsharesissued)isadjustedagainstsharepremiuminthecapitalreserve,withanyexcessadjustedagainstretainedearnings.Anycostsdirectlyattributabletothecombinationarerecognisedinprofitorlosswhenincurred.Thecombinationdateisthedateonwhichonecombiningentityobtainscontrolofothercombiningentities.
(2)Businesscombinationsinvolvingentitiesnotundercommoncontrol
Abusinesscombinationinvolvingentitiesnotundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthebusinesscombination.Where(1)theaggregateoftheacquisition-datefairvalueofassetstransferred(includingtheacquirer’spreviouslyheldequityinterestintheacquiree),liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree,exceeds(2)theacquirer’sinterestintheacquisition-datefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceisrecognisedasgoodwill(seeNoteIII.18).If(1)islessthan(2),thedifferenceisrecognisedinprofitorlossforthecurrentperiod.Otheracquisition-relatedcostsareexpensedwhenincurred.Theacquiree’sidentifiableasset,liabilitiesandcontingentliabilities,iftherecognitioncriteriaaremet,arerecognisedbytheGroupattheiracquisition-datefairvalue.Theacquisitiondateisthedateonwhichtheacquirerobtainscontroloftheacquiree.Forabusinesscombinationinvolvingentitiesnotundercommoncontrolandachievedinstages,theGroupremeasuresitspreviously-heldequityinterestintheacquireetoitsacquisition-datefairvalueandrecognisesanyresultingdifferencebetweenthefairvalueandthecarryingamountasinvestmentincomeorothercomprehensiveincomeforthecurrentperiod.Inaddition,anyamountrecognisedinothercomprehensiveincomethatmaybereclassifiedtoprofitorloss,inpriorreportingperiodsrelatingtothepreviously-heldequityinterest,andanyotherchangesintheowners’equityunderequityaccounting,aretransferredtoinvestmentincomeintheperiodinwhichtheacquisitionoccurs(seeNoteIII.11(2)(b)).Ifequityinterestsoftheacquireeheldbeforeacquisition-datewereequityinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,othercomprehensiveincomerecognisedshallbemovedtoretainedearningsonacquisition-date.
6Consolidatedfinancialstatements
(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.6(4)).Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognisedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.
(4)Changesinnon-controllinginterests
WheretheCompanyacquiresanon-controllinginterestfromasubsidiary’snon-controllingshareholdersordisposesofaportionofaninterestinasubsidiarywithoutachangeincontrol,thedifferencebetweentheproportioninterestsofthesubsidiary’snetassetsbeingacquiredordisposedandtheamountoftheconsiderationpaidorreceivedisadjustedtothecapitalreserve(sharepremium)intheconsolidatedbalancesheet,withanyexcessadjustedtoretainedearnings.7Cashandcashequivalents
Cashandcashequivalentscomprisecashonhand,depositsthatcanbereadilywithdrawondemand,andshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandaresubjecttoaninsignificantriskofchangeinvalue.8Foreigncurrencytransactionsandtranslationofforeigncurrencyfinancialstatements
WhentheGroupreceivescapitalinforeigncurrenciesfrominvestors,thecapitalistranslatedtoRenminbiatthespotexchangerateatthedateofthereceipt.Otherforeigncurrencytransactionsare,oninitialrecognition,translatedtoRenminbiatthespotexchangerates.
MonetaryitemsdenominatedinforeigncurrenciesaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Theresultingexchangedifferencesaregenerallyrecognisedinprofitorloss,unlesstheyarisefromthere-translationoftheprincipalandinterestofspecificborrowingsfortheacquisitionandconstructionofqualifyingassets(seeNoteIII.15).Non-monetaryitemsthataremeasuredathistoricalcostinforeigncurrenciesaretranslatedtoRenminbiusingtheexchangerateatthetransactiondate.Intranslatingthefinancialstatementsofaforeignoperation,assetsandliabilitiesofforeignoperationaretranslatedtoRenminbiatthespotexchangerateatthebalancesheetdate.Equityitems,excludingretainedearningsandthetranslationdifferencesinothercomprehensiveincome,aretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.IncomeandexpensesintheincomestatementaretranslatedtoRenminbiatthespotexchangeratesatthetransactiondates.Theresultingtranslationdifferencesarerecognisedinothercomprehensiveincome.Thetranslationdifferencesaccumulatedinothercomprehensiveincomewithrespecttoaforeignoperationaretransferredtoprofitorlossintheperiodwhentheforeignoperationisdisposed.9Financialinstruments
Financialinstrumentsincludecashatbankandonhand,investmentsindebtandequitysecuritiesotherthanthoseclassifiedaslong-termequityinvestments(seeNoteIII.11),receivables,payables,loansandborrowingsandsharecapital.
(1)Recognitionandinitialmeasurementoffinancialassetsandfinancialliabilities
AfinancialassetorfinancialliabilityisrecognisedinthebalancesheetwhentheGroupbecomesapartytothecontractualprovisionsofafinancialinstrument.Afinancialassets(unlessitisatradereceivablewithoutasignificantfinancingcomponent)andfinancialliabilitiesismeasuredinitiallyatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,anyrelateddirectlyattributabletransactioncostsarechargedtoprofitorloss;forothercategoriesoffinancialassetsandfinancialliabilities,anyrelateddirectlyattributabletransactioncostsareincludedintheirinitialcosts.Atradereceivable,withoutsignificantfinancingcomponentorpracticalexpedientappliedforoneyearorlesscontracts,isinitiallymeasuredatthetransactionpriceinaccordancewithNoteIII.22.
(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.-EquityinvestmentsatFVOCITheseassetsaresubsequentlymeasuredatfairvalue.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,ortorealisethefinancialassetandsettle
thefinancialliabilitysimultaneously.
(5)Derecognitionoffinancialassetsandfinancialliabilities
Financialassetisderecognisedwhenoneofthefollowingconditionsismet:
-theGroup’scontractualrightstothecashflowsfromthefinancialassetexpire;-thefinancialassethasbeentransferredandtheGrouptransferssubstantiallyallofthe
risksandrewardsofownershipofthefinancialasset;or；-thefinancialassethasbeentransferred,althoughtheGroupneithertransfersnorretains
substantiallyalloftherisksandrewardsofownershipofthefinancialasset,itdoesnot
retaincontroloverthetransferredasset.Whereatransferofafinancialassetinitsentiretymeetsthecriteriaforderecognition,thedifferencebetweenthetwoamountsbelowisrecognisedinprofitorloss:
-thecarryingamountofthefinancialassettransferredmeasuredatthedateof
derecognition;-thesumoftheconsiderationreceivedfromthetransferand,whenthetransferredfinancial
assetisadebtinvestmentatFVOCI,anycumulativegainorlossthathasbeenrecognised
directlyinothercomprehensiveincomeforthepartderecognised.TheGroupderecognisesafinancialliability(orpartofit)onlywhenitscontractualobligation(orpartofit)isextinguished.
(6)Impairment
TheGrouprecogniseslossallowancesforexpectedcreditloss(ECL)on:
-financialassetsmeasuredatamortisedcost;-financialinvestmentsatfairvaluethroughothercomprehensiveincomeFinancialassetsmeasuredatfairvalue,includingdebtinvestmentsorequitysecuritiesatFVPL,equitysecuritiesdesignatedatFVOCIandderivativefinancialassets,arenotsubjecttotheECLassessment.MeasurementofECLsECLsareaprobability-weightedestimateofcreditlosses.Creditlossesaremeasuredasthepresentvalueofallcashshortfalls(i.e.thedifferencebetweenthecashflowsduetotheentityinaccordancewiththecontractandthecashflowsthattheGroupexpectstoreceive).ThemaximumperiodconsideredwhenestimatingECLsisthemaximumcontractualperiod(includingextensionoptions)overwhichtheGroupisexposedtocreditrisk.LifetimeECLsaretheECLsthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.12-monthECLsaretheportionofECLsthatresultfromdefaulteventsthatarepossiblewithinthe12monthsafterthebalancesheetdate(orashorterperiodiftheexpectedlifeoftheinstrumentislessthan12months).
Foraccountsreceivable,lossallowancearealwaysmeasuredatanamountequaltolifetimeECLs.ECLsonthesefinancialassetsareestimatedusingaprovisionmatrixbasedontheGroup’shistoricalcreditlossexperience,adjustedforfactorsthatarespecifictothedebtorsandanassessmentofboththecurrentandforecastgeneraleconomicconditionsatthebalancesheetdate.Forassetsotherthanaccountsreceivablethatmeetoneofthefollowingconditions,lossallowancearemeasuredatanamountequalto12-monthECLs.Forallotherfinancialinstruments,theGrouprecognisesalossallowanceequaltolifetimeECLs:
-Ifthefinancialinstrumentisdeterminedtohavelowcreditriskatthebalancesheetdate;-Ifthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitial
recognition.FinancialinstrumentsthathavelowcreditriskThecreditriskonafinancialinstrumentisconsideredlowifthefinancialinstrumenthasalowriskofdefault,theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandadversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.SignificantincreasesincreditriskInassessingwhetherthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofdefaultoccurringonthefinancialinstrumentassessedatthebalancesheetdatewiththatassessedatthedateofinitialrecognition.WhendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognitionandwhenestimatingECL,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort,includingforward-lookinginformation.Inparticular,thefollowinginformationistakenintoaccount:
-failuretomakepaymentsofprincipalorinterestontheircontractuallyduedates;-anactualorexpectedsignificantdeteriorationinafinancialinstrument’sexternalorinternal
creditrating(ifavailable);-anactualorexpectedsignificantdeteriorationintheoperatingresultsofthedebtor;and-existingorforecastchangesinthetechnological,market,economicorlegalenvironment
thathaveasignificantadverseeffectonthedebtor’sabilitytomeetitsobligationtothe
Group.Dependingonthenatureofthefinancialinstruments,theassessmentofasignificantincreaseincreditriskisperformedoneitheranindividualbasisoracollectivebasis.Whentheassessmentisperformedonacollectivebasis,thefinancialinstrumentsaregroupedbasedonsharedcreditriskcharacteristics,suchaspastduestatusandcreditriskratings.TheGroupassumesthatthecreditriskonafinancialassethasincreasedsignificantlyifitismorethan30dayspastdue.
Credit-impairedfinancialassetsAteachbalancesheetdate,theGroupassesseswhetherfinancialassetscarriedatamortisedcostanddebtinvestmentsatFVOCIarecredit-impaired.Afinancialassetis‘credit-impaired’whenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowsofthefinancialassethaveoccurred.Evidencethatafinancialassetiscredit-impairedincludesthefollowingobservabledata:
-significantfinancialdifficultyoftheborrowerorissuer;-abreachofcontract,suchasadefaultordelinquencyininterestorprincipalpayments;-foreconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficulty,theGrouphavinggrantedtotheborroweraconcessionthatwouldnototherwiseconsider;-itisprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;or-thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancialdifficulties.PresentationofallowanceforECLECLsareremeasuredateachbalancesheetdatetoreflectchangesinthefinancialinstrument’screditrisksinceinitialrecognition.AnychangeintheECLamountisrecognisedasanimpairmentgainorlossinprofitorloss.TheGrouprecognisesanimpairmentgainorlossforallfinancialinstrumentswithacorrespondingadjustmenttotheircarryingamountthroughalossallowanceaccount,exceptfordebtinvestmentsthataremeasuredatFVOCI,forwhichthelossallowanceisrecognisedinothercomprehensiveincome.Write-offThegrosscarryingamountofafinancialassetiswrittenoff(eitherpartiallyorinfull)totheextentthatthereisnorealisticprospectofrecovery.Awrite-offconstitutesaderecognitionevent.ThisisgenerallythecasewhentheGroupdeterminesthatthedebtordoesnothaveassetsorsourcesofincomethatcouldgeneratesufficientcashflowstorepaytheamountssubjecttothewrite-off.However,financialassetsthatarewrittenoffcouldstillbesubjecttoenforcementactivitiesinordertocomplywiththeGroup’sproceduresforrecoveryofamountsdue.Subsequentrecoveriesofanassetthatwaspreviouslywrittenoffarerecognisedasareversalofimpairmentinprofitorlossintheperiodinwhichtherecoveryoccurs.
(7)Equityinstrument
Theconsiderationreceivedfromtheissuanceofequityinstrumentsnetoftransactioncostsisrecognisedinshareholders’equity.ConsiderationandtransactioncostspaidbytheCompanyforrepurchasingself-issuedequityinstrumentsaredeductedfromshareholders’equity.WhentheCompanyrepurchasesitsownshares,thosesharesaretreatedastreasuryshares.Allexpenditurerelatingtotherepurchaseisrecordedinthecostofthetreasuryshares,withthetransactionrecordingintheshareregister.Treasurysharesareexcludedfromprofitdistributionsandarepresentedasadeductionundershareholders’equityinthebalancesheet.
10Inventories
(1)Classificationandcost
Inventoriesincluderawmaterials,workinprogressandreusablematerials.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpenditureincurredinbringingtheinventoriestotheirpresentlocationandcondition.Inadditiontothepurchasecostofrawmaterials,workinprogressandfinishedgoodsincludedirectlabourcostsandanappropriateallocationofproductionoverheads.AgriculturalproductsharvestedarereportedinaccordancewiththeCASNo.1-Inventories.
(2)Measurementmethodofcostofinventories
Costofinventoriesiscalculatedusingtheweightedaveragemethod.Consumablesincludinglow-valueconsumablesandpackagingmaterialsareamortisedwhentheyareused.Theamortisationchargeisincludedinthecostoftherelatedassetsorrecognisedinprofitorlossforthecurrentperiod.
(3)Basisfordeterminingthenetrealisablevalueandmethodforprovisionforobsolete
inventoriesAtthebalancesheetdate,inventoriesarecarriedatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Thenetrealisablevalueofmaterialsheldforuseintheproductionismeasuredbasedonthenetrealisablevalueofthefinishedgoodsinwhichtheywillbeincorporated.Thenetrealisablevalueoftheinventoryheldtosatisfysalesorservicecontractsismeasuredbasedonthecontractprice,totheextentofthequantitiesspecifiedinsalescontracts,andtheexcessportionofinventoriesismeasuredbasedongeneralsellingprices.Anyexcessofthecostoverthenetrealisablevalueofeachitemofinventoriesisrecognisedasaprovisionforimpairment,andisrecognisedinprofitorloss.
(4)Inventorycountsystem
TheGroupmaintainsaperpetualinventorysystem.
11Long-termequityinvestments
(1)Investmentcostoflong-termequityinvestments
(a)Long-termequityinvestmentsacquiredthroughabusinesscombination
-Theinitialcostofalong-termequityinvestmentacquiredthroughabusinesscombinationinvolvingentitiesundercommoncontrolistheCompany’sshareofthecarryingamountofthesubsidiary’sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountoftheconsiderationgivenisadjustedtothesharepremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.Foralong-termequityinvestmentinasubsidiaryacquiredthroughabusinesscombinationachievedinstageswhichdonotformabundledtransactionandinvolvingentitiesundercommoncontrol,theCompanydeterminestheinitialcostoftheinvestmentinaccordancewiththeabovepolicies.Thedifferencebetweenthisinitialcostandthesumofthecarryingamountofpreviously-heldinvestmentandtheconsiderationpaidforthesharesnewlyacquiredisadjustedtocapitalpremiuminthecapitalreserve,withanyexcessadjustedtoretainedearnings.-Foralong-termequityinvestmentobtainedthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,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.28).Exceptforcashdividendsorprofitdistributionsdeclaredbutnotyetdistributedthathavebeenincludedinthepriceorconsiderationpaidinobtainingtheinvestments,theCompanyrecognisesitsshareofthecashdividendsorprofitdistributionsdeclaredbytheinvesteeasinvestmentincomeforthecurrentperiod.Theinvestmentsinsubsidiariesarestatedinthebalancesheetatcostlessaccumulatedimpairmentlosses.
Fortheimpairmentoftheinvestmentsinsubsidiaries,refertoNoteIII.20.IntheGroup’sconsolidatedfinancialstatements,subsidiariesareaccountedforinaccordancewiththepoliciesdescribedinNoteIII.6.(b)Investmentinjointventuresandassociates
AjointventureisanarrangementwherebytheGroupandotherpartieshavejointcontrol(seeNoteIII.11(3))andrightstothenetassetsofthearrangement.AssociatedenterprisesrefertoenterprisestowhichtheGroupcanexercisesignificantinfluence(seeNoteIII.11(3)).Along-termequityinvestmentinajointventureisaccountedforusingtheequitymethodforsubsequentmeasurement,unlesstheinvestmentisclassifiedasheldforsale(seeNoteIII.28).TheaccountingtreatmentsundertheequitymethodadoptedbytheGroupareasfollows:
-Wheretheinitialcostofalong-termequityinvestmentexceedstheGroup’sinterest
inthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedatcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsatthedateofacquisition,theinvestmentisinitiallyrecognisedattheinvestor’sshareofthefairvalueoftheinvestee’sidentifiablenetassets,andthedifferenceisrecognisedinprofitorloss.-Aftertheacquisitionoftheinvestment,theGrouprecognisesitsshareofthe
investee’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.
-TheGroupdiscontinuesrecognisingitsshareoffurtherlossesoftheinvesteeafterthecarryingamountofthelong-termequityinvestmentandanylong-terminterestthatinsubstanceformspartoftheGroup’snetinvestmentintheassociateisreducedtozero,excepttotheextentthattheGrouphasanobligationtoassumeadditionallosses.Ifthejointventuresubsequentlyreportsnetprofits,theGroupresumesrecognisingitsshareofthoseprofitsonlyafteritsshareoftheprofitsequalstheshareoflossesnotrecognised.Fortheimpairmentoftheinvestmentsinjointventuresandassociates,refertoNoteIII.20.
(3)Criteriafordeterminingtheexistenceofjointcontroloveraninvestee
Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivities(activitieswithsignificantimpactonthereturnsofthearrangement)requiretheunanimousconsentofthepartiessharingcontrol.ThefollowingfactorsareusuallyconsideredwhenassessingwhethertheGroupcanexercisejointcontroloveraninvestee:
-Whethernosingleparticipantpartyisinapositiontocontroltheinvestee’srelatedactivitiesunilaterally;-Whetherstrategicdecisionsrelatingtotheinvestee’srelatedactivitiesrequirethe
unanimousconsentofallparticipantpartiesthatsharingofcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofaninvesteebutdoesnothavecontrolorjointcontroloverthosepolicies.12Investmentproperties
Investmentpropertiesarepropertiesheldeithertoearnrentalincomeorforcapitalappreciationorforboth.Investmentpropertiesareaccountedforusingthecostmodelandstatedinthebalancesheetatcostlessaccumulateddepreciation,amortisationandimpairmentlosses,andadoptsadepreciationoramortisationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights,unlesstheinvestmentpropertyisclassifiedasheldforsale(seeNoteIII.28).Fortheimpairmentoftheinvestmentproperties,refertoNoteIII.20.
Category
| Category | Estimatedusefullife(years) | Residualvaluerate(%) | Depreciationrate(%) |
| Plantandbuildings | 20-40years | 0-5% | 2.4%-5.0% |
13Fixedassets
(1)Recognitionoffixedassets
FixedassetsrepresentthetangibleassetsheldbytheGroupforuseinproductionofgoods,supplyofservices,forrentalorforadministrativepurposeswithusefullivesoveroneaccountingyear.
Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relatedtaxes,andanydirectlyattributableexpenditureforbringingtheassettoworkingconditionforitsintendeduse.Thecostofself-constructedassetsismeasuredinaccordancewiththepolicysetoutinNoteIII.14.WherethepartsofanitemoffixedassetshavedifferentusefullivesorprovidebenefitstotheGroupinadifferentpattern,thusnecessitatinguseofdifferentdepreciationratesormethods,eachpartisrecognisedasaseparatefixedasset.AnysubsequentcostsincludingthecostofreplacingpartofanitemoffixedassetsarerecognisedasassetswhenitisprobablethattheeconomicbenefitsassociatedwiththecostswillflowtotheGroup,andthecarryingamountofthereplacedpartisderecognised.Thecostsoftheday-to-daymaintenanceoffixedassetsarerecognisedinprofitorlossasincurred.Fixedassetsarestatedinthebalancesheetatcostlessaccumulateddepreciationandimpairmentlosses.
(2)Depreciationoffixedassets
Thecostofafixedasset,lessitsestimatedresidualvalueandaccumulatedimpairmentlosses,isdepreciatedusingthestraight-linemethodoveritsestimatedusefullife,unlessthefixedassetisclassifiedasheldforsale(seeNoteIII.28).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.20.
(4)Disposaloffixedassets
Thecarryingamountofafixedassetisderecognised:
-whenthefixedassetisholdingfordisposal;or-whennofutureeconomicbenefitisexpectedtobegeneratedfromitsuseordisposal.Gainsorlossesarisingfromtheretirementordisposalofanitemoffixedassetaredeterminedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheitem,andarerecognisedinprofitorlossonthedateofretirementordisposal.
14Constructioninprogress
Thecostofself-constructedassetsincludesthecostofmaterials,directlabour,capitalisedborrowingcosts(seeNoteIII.15),andanyothercostsdirectlyattributabletobringingtheassettoworkingconditionforitsintendeduse.Aself-constructedassetisclassifiedasconstructioninprogressandtransferredtofixedassetwhenitisreadyforitsintendeduse.Nodepreciationisprovidedagainstconstructioninprogress.Constructioninprogressisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.20).15Borrowingcosts
Borrowingcostsincurreddirectlyattributabletotheacquisition,andconstructionorproductionofaqualifyingassetarecapitalisedaspartofthecostoftheasset.Otherborrowingcostsarerecognisedasfinancialexpenseswhenincurred.Duringthecapitalisationperiod,theamountofinterest(includingamortisationofanydiscountorpremiumonborrowing)tobecapitalisedineachaccountingperiodisdeterminedasfollows:
-Wherefundsareborrowedspecificallyfortheacquisitionandconstructionorproductionofaqualifyingasset,theamountofinteresttobecapitalisedistheinterestexpensecalculatedusingeffectiveinterestratesduringtheperiodlessanyinterestincomeearnedfromdepositingtheborrowedfundsoranyinvestmentincomeonthetemporaryinvestmentofthosefundsbeforebeingusedontheasset.-TotheextentthattheGroupborrowsfundsgenerallyandusesthemfortheacquisitionand
constructionorproductionofaqualifyingasset,theamountofborrowingcostseligibleforcapitalisationisdeterminedbyapplyingacapitalisationratetotheweightedaverageoftheexcessamountsofcumulativeexpenditureontheassetovertheaboveamountsofspecificborrowings.Thecapitalisationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Theeffectiveinterestrateisdeterminedastheratethatexactlydiscountsestimatedfuturecashflowthroughtheexpectedlifeoftheborrowingor,whenappropriate,ashorterperiodtotheinitiallyrecognisedamountoftheborrowings.Duringthecapitalisationperiod,exchangedifferencesrelatedtotheprincipalandinterestonaspecific-purposeborrowingdenominatedinforeigncurrencyarecapitalisedaspartofthecostofthequalifyingasset.Theexchangedifferencesrelatedtotheprincipalandinterestonforeigncurrencyborrowingsotherthanaspecific-purposeborrowingarerecognisedasafinancialexpensewhenincurred.
Thecapitalisationperiodistheperiodfromthedateofcommencementofcapitalisationofborrowingcoststothedateofcessationofcapitalisation,excludinganyperiodoverwhichcapitalisationissuspended.Capitalisationofborrowingcostscommenceswhenexpenditurefortheassetisbeingincurred,borrowingcostsarebeingincurredandactivitiesofacquisition,constructionorproductionthatarenecessarytopreparetheassetforitsintendeduseareinprogress,andceaseswhentheassetsbecomereadyfortheirintendeduse.Capitalisationofborrowingcostsshouldceasewhenthequalifyingassetbeingconstructedorproducedhasreacheditsexpectedusableorsaleablecondition.Capitalisationofborrowingcostsissuspendedwhentheacquisition,constructionorproductionactivitiesareinterruptedabnormallyforaperiodofmorethanthreemonths.
16.Biologicalassets
TheGroup'sbiologicalassetsarebearerbiologicalassets.Bearerbiologicalassetsarethosethatareheldforthepurposesofproducingagriculturalproduce,renderingofservicesorrental.BearerbiologicalassetsintheGrouparevines.Bearerbiologicalassetsareinitiallymeasuredatcost.Thecostofself-grownorself-bredbearerbiologicalassetsrepresentsthenecessarydirectlyattributableexpenditureincurredbeforesatisfyingtheexpectedproductionandoperatingpurpose,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.17Intangibleassets
Intangibleassetsarestatedinthebalancesheetatcostlessaccumulatedamortization(wheretheestimatedusefullifeisfinite)andimpairmentlosses(seeNoteIII.20).Foranintangibleassetwithfiniteusefullife,itscostestimatedlessresidualvalueandaccumulatedimpairmentlossesisamortisedonthestraight-linemethodoveritsestimatedusefullife,unlesstheintangibleassetisclassifiedasheldforsale(seeNoteIII.28).
Therespectiveamortisationperiodsforintangibleassetsareasfollows:
Item
| Item | Amortisationperiod(years) |
| Landuserights | 40-50years |
| Softwarelicenses | 5-10years |
| Trademarks | 10years |
Usefullivesandamortisationmethodsofintangibleassetwithfiniteusefullifearereviewedatleastateachyear-end.AnintangibleassetisregardedashavinganindefiniteusefullifeandisnotamortisedwhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Atthebalancesheetdate,theGrouphadintangibleassetswithinfiniteusefullivesincludingthelanduserightsandtrademarks.LanduserightswithinfiniteusefullivesarepermanentlanduserightswithpermanentownershipheldbytheGroupundertherelevantChileandAustralianlawsarisingfromtheGroup’sacquisitionofVi?aIndómita,S.A.,Vi?aDosAndes,S.A.,andBodegasSantaAliciaSPA.(collectivelyreferredtoasthe"ChileIndomitaWineGroup"),andtheacquisitionofKilikanoonEstatePtyLtd.(hereinafterreferredtoasthe"AustraliaKilikanoonEstate"),thereforetherewasnoamortisation.TherighttousetrademarkreferstothetrademarkheldbytheGrouparisingfromtheacquisitionoftheChileIndomitaWineGroupandtheAustraliaKilikanoonEstatewithinfiniteusefullives.Thevaluationoftrademarkwasbasedonthetrendsinthemarketandcompetitiveenvironment,productcycle,andmanaginglong-termdevelopmentstrategy.ThosebasisindicatedthetrademarkwillprovidenetcashflowstotheGroupwithinanuncertainperiod.TheusefullifeisindefiniteasitwashardtopredicttheperiodthatthetrademarkwouldbringeconomicbenefitstotheGroup.18Goodwill
Theinitialcostofgoodwillrepresentstheexcessofcostofacquisitionovertheacquirer’sinterestinthefairvalueoftheidentifiablenetassetsoftheacquireeunderabusinesscombinationnotinvolvingentitiesundercommoncontrol.Goodwillisnotamortisedandisstatedinthebalancesheetatcostlessaccumulatedimpairmentlosses(seeNoteIII.20).Ondisposalofanassetgrouporasetofassetgroups,anyattributablegoodwilliswrittenoffandincludedinthecalculationoftheprofitorlossondisposal.19Long-termdeferredexpenses
Long-termdeferredexpensesareamortisedusingastraight-linemethodwithinthebenefitperiod.Therespectiveamortisationperiodsforsuchexpensesareasfollows:
| Item | Amortisationperiod |
| Landrequisitionfee | 50years |
| Landleaseprepayment | 50years |
| Greeningfee | 5-20years |
| Leaseholdimprovement | 3-5years |
| Others | 3years |
20Impairmentofassetsotherthaninventoriesandfinancialassets
Thecarryingamountsofthefollowingassetsarereviewedateachbalancesheetdatebasedoninternalandexternalsourcesofinformationtodeterminewhetherthereisanyindicationofimpairment:
-fixedassets-constructioninprogress-intangibleassets-Bearerbiologicalassets-investmentpropertiesmeasuredusingacostmodel-long-termequityinvestments-goodwill-long-termdeferredexpenses,etc.Ifanyindicationexists,therecoverableamountoftheassetisestimated.Inaddition,theGroupestimatestherecoverableamountsofgoodwillandintangibleassetswithinfiniteusefullivesateachyear-end,irrespectiveofwhetherthereisanyindicationofimpairment.Goodwillisallocatedtoeachassetgroup,orsetofassetgroups,thatisexpectedtobenefitfromthesynergiesofthecombinationforthepurposeofimpairmenttesting.Therecoverableamountofanasset(orassetgroup,setofassetgroups)isthehigherofitsfairvalue(seeNoteIII.21)lesscoststosellanditspresentvalueofexpectedfuturecashflows.Anassetgroupiscomposedofassetsdirectlyrelatedtocash-generationandisthesmallestidentifiablegroupofassetsthatgeneratescashinflowsthatarelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Thepresentvalueofexpectedfuturecashflowsofanassetisdeterminedbydiscountingthefuturecashflows,estimatedtobederivedfromcontinuinguseoftheassetandfromitsultimatedisposal,totheirpresentvalueusinganappropriatepre-taxdiscountrate.Animpairmentlossisrecognisedinprofitorlosswhentherecoverableamountofanassetislessthanitscarryingamount.Aprovisionforimpairmentoftheassetisrecognisedaccordingly.Impairmentlossesrelatedtoanassetgrouporasetofassetgroupsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheassetgrouporsetofassetgroups,andthentoreducethecarryingamountoftheotherassetsintheassetgrouporsetofassetgroupsonaproratabasis.However,suchallocationwouldnotreducethecarryingamountofanassetbelowthehighestofitsfairvaluelesscoststosell(ifmeasurable),itspresentvalueofexpectedfuturecashflows(ifdeterminable)andzero.Onceanimpairmentlossisrecognised,itisnotreversedinasubsequentperiod.21Fairvaluemeasurement
Unlessotherwisespecified,theGroupmeasuresfairvalueasfollows:
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.
Whenmeasuringfairvalue,theGrouptakesintoaccountthecharacteristicsoftheparticularassetorliability(includingtheconditionandlocationoftheassetandrestrictions,ifany,onthesaleoruseoftheasset)thatmarketparticipantswouldconsiderwhenpricingtheassetorliabilityatthemeasurementdate,andusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataandotherinformationareavailabletomeasurefairvalue.Valuationtechniquesmainlyincludethemarketapproach,theincomeapproachandthecostapproach.22Revenuerecognition
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’sperformancedoesnotcreateanassetwithanalternativeusetoitandtheGrouphasanenforceablerighttopaymentforperformancecompletedtodate.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(seeNoteIII.9(6)).AccountsreceivableistheGroup’srighttoconsiderationthatisunconditional(onlythepassageoftimeisrequired).AcontractliabilityistheGroup’sobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer.ThefollowingisthedescriptionofaccountingpoliciesregardingrevenuefromtheGroup’sprincipalactivities:
TheGroup'ssalesrevenueismainlyderivedfromdealersales.RevenueisrecognisedwhentheGrouptransferscontroloftherelatedproductstothecustomer.Basedonthebusinesscontract,theGrouprecognisedthesalesrevenueofthesetransferswhentheproductisconfirmedandsignedforacceptancebythecustomers.
23Contractcosts
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.24Employeebenefits
(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:
-WhentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemployeeterminationplanoracurtailmentproposal;-WhentheGrouphasaformaldetailedrestructuringplaninvolvingthepaymentof
terminationbenefitsandhasraisedavalidexpectationinthoseaffectedthatitwillcarryouttherestructuringbystartingtoimplementthatplanorannouncingitsmainfeaturestothoseaffectedbyit.25Governmentgrants
Governmentgrantsarenon-reciprocaltransfersofmonetaryornon-monetaryassetsfromthegovernmenttotheGroupexceptforcapitalcontributionsfromthegovernmentinthecapacityasaninvestorintheGroup.AgovernmentgrantisrecognisedwhenthereisreasonableassurancethatthegrantwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtothegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasuredatfairvalue.GovernmentgrantsrelatedtoassetsaregrantswhoseprimaryconditionisthattheGroupqualifyingforthemshouldpurchase,constructorotherwiseacquirelong-termassets.Governmentgrantsrelatedtoincomearegrantsotherthanthoserelatedtoassets.Agovernmentgrantrelatedtoanassetisrecognisedasdeferredincomeandamortisedovertheusefullifeoftherelatedassetonareasonableandsystematicmannerasotherincomeornon-operatingincome.AgrantthatcompensatestheCompanyforexpensesorlossestobeincurredinthefutureisrecognisedasdeferredincome,andincludedinotherincomeornon-operatingincomeintheperiodsinwhichtheexpensesorlossesarerecognised.Orincludedinotherincomeornon-operatingincomedirectly.26Incometax
Currenttaxanddeferredtaxarerecognisedinprofitorlossexcepttotheextentthattheyrelatetoabusinesscombinationoritemsrecogniseddirectlyinequity(includingothercomprehensiveincome).
Currenttaxistheexpectedtaxpayablecalculatedattheapplicabletaxrateontaxableincomefortheyear,plusanyadjustmenttotaxpayableinrespectofpreviousyears.Atthebalancesheetdate,currenttaxassetsandliabilitiesareoffsetonlyiftheGrouphasalegallyenforceablerighttosetthemoffandalsointendseithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.Deferredtaxassetsanddeferredtaxliabilitiesarisefromdeductibleandtaxabletemporarydifferencesrespectively,beingthedifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheirtaxbases,whichincludethedeductiblelossesandtaxcreditscarriedforwardtosubsequentperiods.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilised.Deferredtaxisnotrecognisedforthetemporarydifferencesarisingfromtheinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusinesscombinationandthataffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Deferredtaxisnotrecognisedfortaxabletemporarydifferencesarisingfromtheinitialrecognitionofgoodwill.Atthebalancesheetdate,deferredtaxismeasuredbasedonthetaxconsequencesthatwouldfollowfromtheexpectedmannerofrecoveryorsettlementofthecarryingamountsoftheassetsandliabilities,usingtaxratesenactedatthebalancesheetdatethatareexpectedtobeappliedintheperiodwhentheassetisrecoveredortheliabilityissettled.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate,andisreducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitswillbeutilised.Suchreductionisreversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitswillbeavailable.Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesareoffsetifallofthefollowingconditionsaremet:
-thetaxableentityhasalegallyenforceablerighttooffsetcurrenttaxliabilitiesandcurrenttaxassets;-theyrelatetoincometaxesleviedbythesametaxauthorityoneither:
-thesametaxableentity;or-differenttaxableentitieswhichintendeithertosettlethecurrenttaxliabilitiesandcurrenttaxassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesordeferredtaxassetsareexpectedtobesettledorrecovered.27Operatingleasesandfinanceleases
Aleaseisclassifiedaseitherafinanceleaseoranoperatinglease.Afinanceleaseisaleasethattransferssubstantiallyalltherisksandrewardsincidentaltoownershipofaleasedassettothelessee,irrespectiveofwhetherthelegaltitletotheassetiseventuallytransferred.Anoperatingleaseisaleaseotherthanafinancelease.
(1)Operatingleasecharges
Rentalpaymentsunderoperatingleasesarerecognisedaspartofthecostofanotherrelatedassetorasexpensesonastraight-linebasisovertheleaseterm.Contingentrentalpaymentsareexpensedasincurred.
(2)Assetsleasedoutunderoperatingleases
Fixedassetsleasedoutunderoperatingleases,exceptforinvestmentproperties(seeNoteIII.12),aredepreciatedinaccordancewiththeGroup’sdepreciationpoliciesdescribedinNoteIII.13(2).ImpairmentlossesarerecognisedinaccordancewiththeaccountingpolicydescribedinNoteIII.20.Incomederivedfromoperatingleasesisrecognisedinprofitorlossusingthestraight-linemethodovertheleaseterm.Ifinitialdirectcostsincurredinrespectoftheassetsleasedoutarematerial,thecostsareinitiallycapitalisedandsubsequentlyamortisedinprofitorlossovertheleasetermonthesamebasisastheleaseincome.Otherwise,thecostsarechargedtoprofitorlossimmediately.28Assetsheldforsale
TheGroupclassifiedanon-currentassetordisposalgroupasheldforsalewhenthecarryingamountofanon-currentassetordisposalgroupwillberecoveredthroughasaletransactionratherthanthroughcontinuinguse.Adisposalgroupreferstoagroupofassetstobedisposedof,bysaleorotherwise,togetherasawholeinasingletransactionandliabilitiesdirectlyassociatedwiththoseassetsthatwillbetransferredinthetransaction.Anon-currentassetordisposalgroupisclassifiedasheldforsalewhenallthefollowingcriteriaaremet:
-Accordingtothecustomarypracticesofsellingsuchassetordisposalgroupinsimilartransactions,thenon-currentassetordisposalgroupmustbeavailableforimmediatesaleintheirpresentconditionsubjecttotermsthatareusualandcustomaryforsalesofsuchassetsordisposalgroups;-Itssaleishighlyprobable,thatis,theGrouphasmadearesolutiononasaleplanandhasobtainedafirmpurchasecommitment.Thesaleistobecompletedwithinoneyear.Non-currentassetsordisposalgroupsheldforsalearestatedatthelowerofcarryingamountandfairvalue(seeNoteIII.21)lesscoststosell(exceptfinancialassets(seeNoteIII.9),deferredtaxassets(seeNoteIII.26)andinvestmentpropertiessubsequentmeasuredatfairvalue(seeNoteIII.12)initiallyandsubsequently.Anyexcessofthecarryingamountoverthefairvalue(seeNoteIII.21)lesscoststosellisrecognisedasanimpairmentlossinprofitorloss.29Profitdistributions
Dividendsorprofitdistributionsproposedintheprofitappropriationplan,whichwillbeapprovedafterthebalancesheetdate,arenotrecognisedasaliabilityatthebalancesheetdatebutaredisclosedinthenotesseparately.30Relatedparties
Ifapartyhasthepowertocontrol,jointlycontrolorexercisesignificantinfluenceoveranotherparty,orviceversa,orwheretwoormorepartiesaresubjecttocommoncontrolorjointcontrolfromanotherparty,theyareconsideredtoberelatedparties.Relatedpartiesmaybeindividualsorenterprises.EnterpriseswithwhichtheCompanyisundercommoncontrolonlyfromtheStateandthathavenootherrelatedpartyrelationshipsarenotregardedasrelatedparties.
Inadditiontotherelatedpartiesstatedabove,theCompanydeterminesrelatedpartiesbasedonthedisclosurerequirementsofAdministrativeProceduresontheInformationDisclosuresofListedCompaniesissuedbytheCSRC.31Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparklingwineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup'sinternalorganisationstructure,managementrequirementsandinternalreportingsystem,theGroup'soperationisdividedintofiveparts:China,Spain,France,ChileandAustralia.Themanagementperiodicallyevaluatessegmentresults,inordertoallocateresourcesandevaluateperformances.In2020,over85%ofrevenue,morethan93%ofprofitandover92%ofnon-currentassetsderivedfromChina/arelocatedinChina.ThereforetheGroupdoesnotneedtodiscloseadditionalsegmentreportinformation.32Significantaccountingestimatesandjudgements
Thepreparationofthefinancialstatementsrequiresmanagementtomakeestimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Estimatesaswellasunderlyingassumptionsanduncertaintiesinvolvedarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.
(1)Significantaccountingestimates
Exceptforaccountingestimatesrelatingtodepreciationandamortisationofassetssuchasinvestmentproperties,fixedassets,bearerbiologicalassetsandintangibleassets(seeNotesIII.13and16)andprovisionforimpairmentofvarioustypesofassets(seeNotesV.2,6,10,13and14).Othersignificantaccountingestimatesareasfollows:
(i)NoteV.16–Recognitionofdeferredtaxasset;(ii)NoteIX.–Fairvaluemeasurementsoffinancialinstruments.33Changesinsignificantaccountingpoliciesandaccountingestimates
(1)Descriptionandreasonsofchangesinaccountingpolicies
In2020,theGrouphasadoptedthefollowingrevisedaccountingstandardsissuedbytheMOFrecently:
-CASNo.14-Revenue(Revised)(“newrevenuestandard”)-CASBulletinNo.13(Caikuai[2019]No.21)(“BulletinNo.13”)-AccountingTreatmentofCOVID-19-RelatedRentConcessions(Caikuai[2020]No.10)(a)Newrevenuestandard
NewrevenuestandardreplacesCASNo.14–RevenueandCASNo.15-ConstructionContractsissuedbytheMOFin2006(collectivelyreferredtoas“previousrevenuestandard”).
Underpreviousrevenuestandard,theGrouprecognisedrevenuewhentherisksandrewardshadpassedtothecustomers.TheGroup'srevenuefromsalesofgoodswasrecognisedwhenthefollowingconditionsweremet:thesignificantrisksandrewardsofownershipofthegoodshadbeentransferredtothecustomer,theamountofrevenueandrelatedcostscouldbereliablymeasured,therelevanteconomicbenefitswouldprobablyflowtotheGroupandtheGroupretainedneithercontinuingmanagerialinvolvementtothedegreeusuallyassociatedwithownershipnoreffectivecontroloverthegoodssold.Undernewrevenuestandard,revenueisrecognisedwhenthecustomerobtainscontrolofthepromisedgoodsorservicesinthecontract.PleaserefertoNoteIII.22forrelevantaccountingpolicies.Theeffectsofnewrevenuestandardoneachofthelineitemsintheconsolidatedbalancesheetandcompanybalancesheetasat1January2020areanalysedasfollows:
Increase/(decrease)inthelineitemsasaresultofapplyingnewaccounting
policies
| Increase/(decrease)inthelineitemsasaresultofapplyingnewaccountingpolicies | ||
| TheGroup | Parent | |
| Liabilities: | ||
| Advancepaymentsreceived | (128,907,604) | - |
| Otherpayables | (11,855,592) | - |
| Contractliabilities | 126,910,470 | - |
| Othercurrentliabilities | 13,852,726 | - |
TheGroupadjuststheamountofcontractualconsiderationreceivedbeforethetransferofgoodstocustomersortherighttounconditionallyreceivecontractualconsiderationfromadvancepaymentsreceivedandotherpayablestocontractliabilities,andanyamountsinvolvingvalue-addedtaxwillbeadjustedtoothercurrentliabilities.Thefollowingtablesprovideinformationoftheimpactoneachofthelineitemsintheconsolidatedincomestatementandcompanyincomestatement,andtheconsolidatedbalancesheetandcompanybalancesheetfortheyearended31December2020hadthepreviouspoliciesstillbeenappliedintheyear.Theeffectsoneachofthelineitemsintheconsolidatedincomestatementandcompanyincomestatementfortheyearended31December2020areanalysedasfollows:
| Increase/(decrease)inthelineitemsfortheyearasaresultofapplyingnewaccountingpolicies | ||
| TheGroup | Parent | |
| Operatingcosts | 87,534,630 | - |
| Sellinganddistributionexpenses | (87,534,630) | - |
TheGroupconsidersthetransportationexpensesincurredbeforethetransferofcontroltothecustomerascontractualperformancecosts,whichhasbeenadjustedfromsalesexpensestooperatingcosts.
Theeffectsoneachofthelineitemsintheconsolidatedbalancesheetandcompanybalancesheetasat31December2020areanalysedasfollows:
Increase/(decrease)inthelineitemsas
aresultofapplyingnewaccounting
policies
| Increase/(decrease)inthelineitemsasaresultofapplyingnewaccountingpolicies | ||
| TheGroup | Parent | |
| Liabilities: | ||
| Advancepaymentsreceived | (133,031,452) | - |
| Otherpayables | (16,862,481) | - |
| Contractliabilities | 135,073,280 | - |
| Othercurrentliabilities | 14,820,653 | - |
Thereisnosignificantimpactoneachofthelineitemsintheconsolidatedcashflowstatementandcompanycashflowstatementfortheyearended31December2020hadthepreviouspoliciesstillbeenappliedintheyear.
(2)TheGroupcompletedtheacquisitionofCultureDevelopmentinJuly2020andmade
correspondingadjustmentstothecomparativefinancialinformationinaccordancewiththerelevantregulationsonbusinesscombinationundercommoncontrol(NoteVI).IV.Taxation1Maintypesoftaxesandcorrespondingtaxrates
| Value-addedtax(VAT) | OutputVATiscalculatedonproductsalesandtaxableservicesrevenue.ThebasisforVATpayableistodeductinputVATfromtheoutputVATfortheperiod | 13%,9%,6%(China,after1April2019),16%,10%,6%(China,1May2018to31March2019),17%,13%,6%(China,before1May2018),20%(France),21%(Spain),19%(Chile)and10%(Australia) |
| Consumptiontax | Basedontaxablerevenue | 10%oftheprice,20%ofthepriceandRMB1,000eachton(China) |
| Urbanmaintenanceandconstructiontax | BasedonVATpaid | 7%(China) |
| Corporateincometax | Basedontaxableprofits | 25%(China),28%(France),28%(Spain),27%(Chile),30%(Australia) |
OtherthantaxincentivesstatedinNoteIV.2,applicabletaxratesoftheGroupin2020and2019areallstatedasabove.
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.XinjiangTianzhuWineCo.,Ltd.("XinjiangTianzhu"),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewiththeNoticeonTaxPolicyIssuesconcerningFurtherImplementationoftheWesternChinaDevelopmentStrategy(CaiShui[2011]No.58),XinjiangTianzhuisqualifiedtoenjoypreferentialtaxationpolicies,whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2015to2020.XinjiangChateauChangyuBaronBalboaCo.,Ltd.("ChateauShihezi"),asubsidiaryoftheCompany,isanenterpriseofwineproductionandsalesincorporatedinShihezicity,XinjiangWeizuAutonomous.InaccordancewiththeNoticeonTaxPolicyIssuesconcerningFurtherImplementationoftheWesternChinaDevelopmentStrategy(CaiShui[2011]No.58),ShiheziChateauisqualifiedtoenjoypreferentialtaxationpolicies,whichmeansitcanpaycorporateincometaxatapreferentialrateof15%fortheperiodfrom2015to2020.PursuanttotheAnnouncementonTaxationPoliciesSupportingthePreventionandControlofthePneumoniaEpidemicrelatedtoCovid-19"(AnnouncementfromtheMinistryofFinanceandtheStateTaxationAdministration[2020]No.8),from1January2020,incomefromprovidingpublictransportationservicesanddailylifeservicestotaxpayersandprovidingexpressdeliveryserviceofdailynecessitiestoresidentsareexemptfromvalue-addedtax.TheCompanyhasbranchesandsubsidiariessuchasYantaiChangyuWineCultureMuseumCo.,Ltd.("Museum")thatprovidecatering,accommodation,tourismandotherdailyservices.Theincomefromtheirprovisionofdailylifeserviceswillbeexemptedfromvalue-addedtaxfrom1January2020.
BasedontheNoticeoftheDepartmentofFinanceofShaanxiProvinceandtheShaanxiProvincialTaxationBureauundertheStateTaxationAdministrationonMattersConcerningtheReliefandExemptionofUrbanLandUseTaxandRealEstateTaxinFightingtheEpidemic(ShaanCaiShui[2020]No.4),theDepartmentofFinanceandtheTaxationBureaushallapprovetheapplicationfortaxreliefandexemptionsubmittedbytaxpayerswhohavedifficultiestopayurbanlandusetaxandrealestatetaxowingtothesuspensionofproductionandbusinessformorethan30days(inclusive)arisingfromtheepidemic.ShaanxiChateauChangyuRenaCo.,Ltd.andChangyu(Jingyang)WineCo.,Ltd.,twosubsidiariesoftheCompany,meettheapplicationrequirementsandwillbeexemptedfromrealestatetaxandurbanlandusetaxinthefirstquarterof2020.PursuanttotheNoticeoftheTaxationBureauinNingxiaHuiAutonomousRegionundertheStateTaxationAdministrationandtheDepartmentofFinanceinNingxiaHuiAutonomousRegiononImplementingthePoliciesofRealEstateTaxandUrbanLandUseTaxbythePeople’sGovernmentinAutonomousRegioninresponsetotheimpactfromCovid-19Epidemic(NingShuiHan[2020]No.19),theTaxationBureaushallapprovetheapplicationfortaxreliefsubmittedbyenterprisesthathavedifficultiestopayrealestatetaxandurbanlandusetaxowingtotheepidemic.ShaanxiChateauChangyuRenaCo.,Ltd.andChangyu(Ningxia)WineCo.,Ltd.,twosubsidiariesoftheCompany,meettheapplicationrequirementsandwillbeexemptedfromrealestatetaxandurbanlandusetaxforfivemonthsin2020.V.Notestotheconsolidatedfinancialstatements1Cashatbankandonhand
Item
| Item | 2020 | 2019 |
| Cashonhand | 19,637 | 65,195 |
| Bankdeposits | 1,128,882,937 | 1,506,110,752 |
| Othermonetaryfunds | 65,312,355 | 91,234,828 |
| Total | 1,194,214,929 | 1,597,410,775 |
| Including:Totaloverseasdeposits | 47,674,019 | 42,752,630 |
Asat31December2020,thebalanceofrestrictedcashoftheGroupisasfollows:
| Item | 2020 | 2019 |
| Housemaintenancefunds | 2,684,407 | 2,647,877 |
Asat31December2020,theGroup'stermdepositswithpreviousmaturityofmorethanthreemonthsisRMB73,553,062withinterestrate1.50%-2.75%(31December2019:
RMB106,128,600).Asat31December2020,theGroup'sothermonetaryassetsisasfollows:
| Item | 2020 | 2019 |
| YantaiChangyuPioneerWineCompanyLimitedResearchandDevelopmentCo.,Ltd.("R&DCentre")pledgeddepositforlong-termpayables | 20,000,000 | 46,100,000 |
| Depositsforlettersofcredit | 44,540,850 | 44,540,850 |
| Alipayaccountbalance | 761,505 | 583,978 |
| DepositforICBCplatform | 10,000 | 10,000 |
| Total | 65,312,355 | 91,234,828 |
2Accountsreceivable
(1)Accountsreceivablebycustomertypeareasfollows:
Type
| Type | 31December2020 | 31December2019 |
| Amountsduefromrelatedparties | 2,268,311 | 4,292,387 |
| Amountsduefromothercustomers | 193,911,657 | 278,112,684 |
| Sub-total | 196,179,968 | 282,405,071 |
| Less:Provisionforbadanddoubtfuldebts | (12,326,606) | (16,674,915) |
| Total | 183,853,362 | 265,730,156 |
Asat31December2020,ownershiprestrictedaccountsreceivableisRMB28,557,991(31December2019:RMB54,663,422),referringtoNoteV.51.
(2)Theageinganalysisofaccountsreceivableisasfollows:
| Ageing | 2020 | 2019 |
| Within1year(inclusive) | 190,047,491 | 276,186,686 |
| Over1yearbutwithin2years(inclusive) | 5,581,750 | 5,743,777 |
| Over2yearsbutwithin3years(inclusive) | 366,053 | 308,950 |
| Over3years | 184,674 | 165,658 |
| Sub-total | 196,179,968 | 282,405,071 |
| Less:Provisionforbadanddoubtfuldebts | (12,326,606) | (16,674,915) |
| Total | 183,853,362 | 265,730,156 |
Theageingiscountedstartingfromthedatewhenaccountsreceivablearerecognised.
(3)Accountsreceivablebyprovisioningmethod
AtalltimestheGroupmeasurestheimpairmentlossforaccountsreceivableatanamountequaltolifetimeECLs,andtheECLsarebasedonthenumberofoverduedaysandthelossgivendefault.AccordingtothehistoricalexperienceoftheGroup,therearenosignificantdifferencesinthelossesofdifferentcustomergroups.Therefore,differentcustomergroupsarenotfurtherdistinguishedwhencalculatingimpairmentlossbasedontheoverdueinformation.
2020
Lossgivendefault
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.4% | 146,425,314 | 650,298 |
| Overduefor1to30days | 3.4% | 14,631,174 | 495,839 |
| Overduefor31to60days | 6.4% | 6,678,504 | 424,266 |
| Overduefor61to90days | 10.3% | 5,582,357 | 574,675 |
| Overduefor91to120days | 12.9% | 2,054,400 | 265,530 |
| Overduefor121to150days | 15.6% | 2,769,171 | 431,319 |
| Overduefor151to180days | 21.7% | 3,970,361 | 859,903 |
| Overduefor181to210days | 30.3% | 1,417,385 | 429,287 |
| Overduefor211to240days | 32.0% | 5,413,890 | 1,731,246 |
| Overduefor241to270days | 35.7% | 993,299 | 354,988 |
| Overduefor271to300days | 54.6% | 111,636 | 60,963 |
| Overduefor301to330days | 88.7% | 748,270 | 664,085 |
| Overduefor331to360days | 100.0% | 323,563 | 323,563 |
| Overduefor360days | 100.0% | 5,060,644 | 5,060,644 |
| Total | 6.3% | 196,179,968 | 12,326,606 |
2019
| Lossgivendefault | Carryingamountattheendoftheyear | Impairmentlossattheendoftheyear | |
| Current | 0.5% | 212,907,296 | 1,042,035 |
| Overduefor1to30days | 3.4% | 30,742,719 | 1,048,024 |
| Overduefor31to60days | 7.1% | 11,523,509 | 814,636 |
| Overduefor61to90days | 12.1% | 5,764,703 | 700,190 |
| Overduefor91to120days | 17.4% | 1,590,671 | 276,279 |
| Overduefor121to150days | 22.4% | 2,311,625 | 517,066 |
| Overduefor151to180days | 28.5% | 661,492 | 188,571 |
| Overduefor181to210days | 33.3% | 2,583,362 | 861,027 |
| Overduefor211to240days | 39.4% | 4,686,242 | 1,844,776 |
| Overduefor241to270days | 72.9% | 588,355 | 428,627 |
| Overduefor271to300days | 87.8% | 583,701 | 512,581 |
| Overduefor301to330days | 97.3% | 753,239 | 732,946 |
| Overduefor331to360days | 100.0% | 1,491,202 | 1,491,202 |
| Overduefor360days | 100.0% | 6,216,955 | 6,216,955 |
| Total | 5.9% | 282,405,071 | 16,674,915 |
Thelossgivendefaultismeasuredbasedontheactualcreditlossexperienceinthepast12months,andisadjustedtakingintoconsiderationthedifferencesamongtheeconomicconditionsduringthehistoricaldatacollectionperiod,thecurrenteconomicconditionsandtheeconomicconditionsduringtheexpectedlifetime.
(4)Movementsofprovisionsforbadanddoubtfuldebts:
2020
| 2020 | 2019 | |
| Balanceunderthepreviousfinancialinstrumentsstandards | - | - |
| Adjustmentoninitialapplicationofthenewfinancialinstrumentsstandards | - | (10,050,869) |
| Balanceatthebeginningoftheyearafteradjustment | (16,674,915) | (10,050,869) |
| Chargefortheyear | (11,591,483) | (6,678,498) |
| Recoveriesorreversalsduringtheyear | 15,939,792 | - |
| Written-offduringtheyear | - | 54,452 |
| Balanceattheendoftheyear | (12,326,606) | (16,674,915) |
(5)Fivelargestaccountsreceivablebydebtorattheendoftheyear:
| Name | RelationshipwiththeGroup | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| LianhuaSupermarketHoldingsCo.,Ltd. | Thirdparty | 14,891,601 | Within1year | 7.6% | 817,856 |
| NGSSupermarket(Group)Co.,Ltd. | Thirdparty | 6,703,398 | Within1year | 3.4% | 1,945,399 |
| ConcordInvestment(China)Co.,Ltd. | Thirdparty | 6,363,346 | Within1year | 3.2% | 27,264 |
| THECO-OPFOODGROUP | Thirdparty | 6,045,716 | Within1year | 3.1% | 129,588 |
| SLIGROB.V. | Thirdparty | 5,861,893 | Within1year | 3.0% | 125,648 |
| Total | 39,865,954 | 20.3% | 3,045,755 |
3Receivablesunderfinancing
| Item | Note | 2020 | 2019 |
| Billsreceivable | (1) | 338,090,187 | 317,270,229 |
(1)ThepledgedbillsreceivableoftheGroupattheendoftheyear:
Asat31December2020,therewasnopledgedbillsreceivable(31December2019:Nil).
(2)Outstandingendorsedbillsthathavenotmaturedattheendoftheyear:
| Item | Amountderecognisedatyearend |
| Bankacceptancebills | 260,721,441 |
| Total | 260,721,441 |
Asat31December2020,billsendorsedbytheGrouptootherpartieswhicharenotyetdueattheendoftheperiodisRMB260,721,441(31December2019:RMB265,759,455).Thenotesareusedforpaymenttosuppliersandconstructions.TheGroupbelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theGroupwouldundertakelimitedliabilityforthenotes.
4Prepayments
(1)Prepaymentsbycategory:
Item
| Item | 2020 | 2019 |
| Prepayments | 71,296,416 | 66,864,156 |
| Otherprepayments | - | 900,000 |
| Total | 71,296,416 | 67,764,156 |
(2)Theageinganalysisofprepaymentsisasfollows:
| Ageing | 2020 | 2019 | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within1year(inclusive) | 70,977,636 | 99.6% | 67,498,332 | 99.6% |
| Over1yearbutwithin2years(inclusive) | 318,780 | 0.4% | 265,824 | 0.4% |
| Total | 71,296,416 | 100.0% | 67,764,156 | 100.0% |
Theageingiscountedstartingfromthedatewhenprepaymentsarerecognised.
(3)Fivelargestprepaymentsbydebtorattheendoftheyear:
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| XinjiangYuyuanWineCo.,Ltd. | Prepayments | 32,791,457 | Within1year | 46.0% | - |
| FangCaoHuBranchofXinjiangTianyugrapewinemakingCo.,Ltd | Prepayments | 18,885,867 | Within1year | 26.5% | - |
| Wine-World.comCo.,Ltd. | Prepayments | 6,812,267 | Within1year | 9.6% | - |
| RRWINELTDA | Prepayments | 4,459,064 | Within1year | 6.3% | - |
| YantaipowersupplycompanyofStateGridShandongelectricpowercompany | Prepayments | 1,229,571 | Within1year | 1.7% | - |
| Total | 64,178,226 | 90.0% | - |
5Otherreceivables
| Note | 31December2020 | 31December2019 | |
| Interestreceivable | (1) | - | 148,927 |
| Others | (2) | 22,428,956 | 24,201,301 |
| Total | 22,428,956 | 24,350,228 |
(1)Interestreceivable
(a)Interestreceivablebycategory:
| Item | 31December2020 | 31December2019 |
| Interestreceivableonbankdeposits | - | 148,927 |
(b)Significantoverdueinterest:
Asat31December2020,therewasnooverdueinterestreceivable(31December2019:Nil).
(2)Others
(a)Othersbycustomertype:
Customertype
| Customertype | 31December2020 | 31December2019 |
| Amountsduefromrelatedparties | 522,936 | 813,440 |
| Amountsduefromothercompanies | 21,906,020 | 23,387,861 |
| Sub-total | 22,428,956 | 24,201,301 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 22,428,956 | 24,201,301 |
(b)Theageinganalysisisasfollows:
| Ageing | 2020 | 2019 |
| Within1year(inclusive) | 10,738,225 | 16,156,330 |
| Over1yearbutwithin2years(inclusive) | 3,927,625 | 940,668 |
| Over2yearsbutwithin3years(inclusive) | 787,908 | 6,547,178 |
| Over3years | 6,975,198 | 557,125 |
| Sub-total | 22,428,956 | 24,201,301 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 22,428,956 | 24,201,301 |
Theageingiscountedstartingfromthedatewhenotherreceivablesarerecognised.(c)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2020,nobadanddoubtfuldebtprovisionwasmadeforother
receivables(31December2019:Nil).
Asat31December2020,theGrouphasnootherreceivableswrittenoff(31December
2019:Nil).
(d)Otherscategorisedbynature
Natureofotherreceivables
| Natureofotherreceivables | 2020 | 2019 |
| Deposit | 10,287,959 | 9,915,442 |
| RefundofconsumptiontaxandVAT | 8,254,195 | 8,937,164 |
| Pettycashreceivable | 124,878 | 1,741,147 |
| Others | 3,761,924 | 3,607,548 |
| Sub-total | 22,428,956 | 24,201,301 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 22,428,956 | 24,201,301 |
(e)Fivelargestothers-bydebtorattheendoftheyear
| Name | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| SerciciodeImpuestosInternos | RefundofVAT | 7,044,680 | Within1year | 31.4% | - |
| FinanceBureauofYantaiEconomicandTechnologicalDevelopmentArea | Deposits | 5,262,324 | Over3years | 23.5% | - |
| YantaiEconomicandTechnologicalDevelopmentZoneConstructionIndustryFederation | Constructiondeposit | 1,143,500 | Over3years | 5.1% | - |
| MunicipalidaddeCasablanca | Deposits | 920,000 | Within1year | 4.1% | - |
| YantaiMunicipalTaxService,StateTaxationAdministration | RefundofVAT | 736,946 | Over1yearbutwithin2years | 3.3% | - |
| Total | 15,107,450 | 67.4% | - |
6Inventories
(1)Inventoriesbycategory:
| Item | 2020 | 2019 | ||||
| Bookvalue | Provisionforimpairmentofinventories | Carryingamount | Bookvalue | Provisionforimpairmentofinventories | Carryingamount | |
| Rawmaterials | 70,165,666 | - | 70,165,666 | 72,140,633 | - | 72,140,633 |
| Workinprogress | 2,236,815,423 | - | 2,236,815,423 | 2,105,226,082 | - | 2,105,226,082 |
| Finishedgoods | 653,042,196 | (14,474,634) | 638,567,562 | 744,464,477 | (20,179,637) | 724,284,840 |
| Total | 2,960,023,285 | (14,474,634) | 2,945,548,651 | 2,921,831,192 | (20,179,637) | 2,901,651,555 |
(2)Provisionforimpairmentofinventories:
| Item | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Closingbalance |
| Recognised | Reversal | |||
| Finishedgoods | 20,179,637 | 14,474,634 | (20,179,637) | 14,474,634 |
7Othercurrentassets
Item
| Item | 2020 | 2019 |
| Prepaidincometaxes | 16,087,815 | 16,854,091 |
| Inputtaxtobecredited | 215,812,506 | 250,552,566 |
| Prepaidrent | 2,218,394 | 1,595,664 |
| Total | 234,118,715 | 269,002,321 |
8Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
| Item | 2020 | 2019 |
| Investmentsinjointventures | 42,019,654 | 43,981,130 |
| Investmentsinassociates | 6,243,853 | - |
| Sub-total | 48,263,507 | 43,981,130 |
| Less:Provisionforimpairment | - | - |
| Total | 48,263,507 | 43,981,130 |
(2)Movementsoflong-termequityinvestmentsduringtheyearareasfollows:
| Investee | 2020Balanceatthebeginningoftheyear | Movementsduringtheyear | 2020Closingbalance | Shareholdingpercentage | |
| Increaseincapital | Lossesfrominvestmentsunderequity-method | ||||
| Jointventures | |||||
| SASL&MHoldings(“L&MHoldings”) | 43,981,130 | - | (1,961,476) | 42,019,654 | 55% |
| Associates | |||||
| WEMISS(Shanghai)EnterpriseDevelopmentCo.,Ltd(“WEMISSShanghai”) | - | 3,000,000 | (256,110) | 2,743,890 | 30% |
| YantaiSantaiRealEstateDevelopmentCo.,Ltd | - | 3,500,000 | (37) | 3,499,963 | 35% |
| Sub-total | - | 6,500,000 | (256,147) | 6,243,853 | |
| Total | 43,981,130 | 6,500,000 | (2,217,623) | 48,263,507 | |
9Investmentproperties
| Buildingsandplants | |
| Cost | |
| Balanceasat31December2019and31December2020 | 70,954,045 |
| Accumulateddepreciation | |
| 31December2019 | (41,239,459) |
| Chargefortheyear | (2,656,856) |
| 31December2020 | (43,896,315) |
| Carryingamount | |
| 31December2020 | 27,057,730 |
| 31December2019 | 29,714,586 |
10Fixedassets
(1)Fixedassets
Item
| Item | Plant&buildings | Machinery&equipment | Motorvehicles | Total |
| Cost | ||||
| 31December2019 | 5,157,724,379 | 2,741,954,286 | 26,777,052 | 7,926,455,717 |
| Additionsduringtheyear | ||||
| -Purchases | 38,183,113 | 76,184,901 | 1,292,028 | 115,660,042 |
| -Transfersfromconstructioninprogress | 5,962,066 | 5,450,980 | - | 11,413,046 |
| Disposalsorwritten-offsduringtheyear | (65,110,863) | (36,280,680) | (502,488) | (101,894,031) |
| 31December2020 | 5,136,758,695 | 2,787,309,487 | 27,566,592 | 7,951,634,774 |
| Accumulateddepreciation | ||||
| 31December2019 | (774,068,821) | (1,170,786,526) | (20,153,244) | (1,965,008,591) |
| Chargefortheyear | (138,522,840) | (154,702,790) | (2,341,841) | (295,567,471) |
| Disposalsorwritten-offsduringtheyear | 20,009,805 | 30,842,868 | 502,488 | 51,355,161 |
| 31December2020 | (892,581,856) | (1,294,646,448) | (21,992,597) | (2,209,220,901) |
| Provisionforimpairment | ||||
| 31December2019 | - | (17,478,027) | - | (17,478,027) |
| Chargefortheyear | - | - | - | - |
| 31December2020 | - | (17,478,027) | - | (17,478,027) |
| Carryingamount | ||||
| 31December2020 | 4,244,176,839 | 1,475,185,012 | 5,573,995 | 5,724,935,846 |
| 31December2019 | 4,383,655,558 | 1,553,689,733 | 6,623,808 | 5,943,969,099 |
Asat31December2020,ownershiprestrictednetvalueoffixedassetsisRMB333,748,819(31December2019:RMB344,670,852),referringtoNoteV.51.
(2)Fixedassetsleasedoutunderoperatingleases
| Item | Cost | Accumulateddepreciation | Provisionforimpairment | Carryingamount |
| Buildings | 47,821,026 | (16,328,522) | - | 31,492,504 |
| Machineryequipment | 73,592,531 | (52,434,878) | (17,478,027) | 3,679,626 |
| Motorvehicles | 3,344,518 | (3,179,606) | - | 164,912 |
| Total | 124,758,075 | (71,943,006) | (17,478,027) | 35,337,042 |
(3)Fixedassetsleasedoutunderoperatingleases
| Item | Carryingamountattheendoftheyear |
| Machineryequipment | 15,825 |
(4)Fixedassetspendingcertificatesofownership
Item
| Item | Carryingamount | Reasonwhythecertificatesarepending |
| IndustryProductionCentreofR&DCentre | 1,606,465,153 | Processing |
| Dormitories,mainbuildingandreceptionbuildingofChanganChateau | 283,897,062 | Processing |
| Europeantown,mainbuildingandservicebuildingofChateauBeijing | 176,052,749 | Processing |
| FermentationshopandwarehouseofXinjiangTianzhu | 16,480,122 | Processing |
| OfficeandpackagingshopofGoldenIcewineValley | 9,360,274 | Processing |
| FermentationshopofZhangyu(Jingyang) | 5,504,822 | Processing |
| Office,experimentbuildingandworkshopofFermentationCentre | 2,585,022 | Processing |
| FinishedgoodswarehouseandworkshopofKylinPackaging | 2,215,494 | Processing |
| Others | 1,118,794 | Processing |
ThebuildingswithoutpropertycertificateabovehavenosignificantimpactontheGroup'smanagement.11Constructioninprogress
(1)Constructioninprogress
| Project | 2020 | 2019 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| R&DCentre("ChangyuWineComplex")Project | 589,010,299 | - | 589,010,299 | 485,017,326 | - | 485,017,326 |
| NingxiaChateauConstructionProject | 420,440 | - | 420,440 | 46,448,561 | - | 46,448,561 |
| SalesCompanyConstructionProject | 738,462 | - | 738,462 | 6,313,962 | - | 6,313,962 |
| ChanganChateauConstructionProject | 7,626,393 | - | 7,626,393 | 4,052,839 | - | 4,052,839 |
| ShiheziChateauConstructionProject | 5,000 | - | 5,000 | 877,348 | - | 877,348 |
| OtherCompanies’ConstructionProject | 37,694,558 | - | 37,694,558 | 24,768,797 | - | 24,768,797 |
| Total | 635,495,152 | - | 635,495,152 | 567,478,833 | - | 567,478,833 |
(2)Movementsofmajorconstructionprojectsinprogressduringtheyear
Item
| Item | Budget(RMBmillion) | Openingbalance | Additionsduringtheyear | Transferstofixedassets | TransferstoIntangibleassets | Transferstolong-termdeferredexpenses | Closingbalance | Percentageofactualcosttobudget(%) | Accumulatedcapitalisedinterest | Attributableto:Interestcapitalisedfortheyear | Interestrateforcapitalisationin2020(%) | Sourcesoffunding |
| ChangyuWineComplex | 4,506 | 485,017,326 | 105,934,721 | (1,941,748) | - | - | 589,010,299 | 80.0% | 16,210,123 | 797,021 | 1.2%及4.3% | Loansfromfinancialinstitutionsandself-raised |
| NingxiaChateauConstructionProject | 428 | 46,448,561 | 4,995,252 | (2,294,265) | - | (48,729,108) | 420,440 | 100.0% | - | - | - | Self-raised |
| ChanganChateauConstructionProject | 698 | 4,052,839 | 9,823,371 | (6,249,817) | - | - | 7,626,393 | 99.6% | - | - | - | Self-raised |
| ShiheziChateauConstructionProject | 780 | 877,348 | 39,484 | (911,832) | - | - | 5,000 | 96.4% | - | - | - | Self-raised |
| SalesCompanyConstructionProject | 165 | 6,313,962 | 2,079,500 | - | (7,655,000) | - | 738,462 | 99.6% | - | - | - | Self-raised |
12Bearerbiologicalassets
Bearerbiologicalassetsarevines,whichmeasuredincostmethod.
Item
| Item | Immaturebiologicalassets | Maturebiologicalassets | Total |
| Originalbookvalue | |||
| 31December2019 | 12,828,822 | 240,517,972 | 253,346,794 |
| Additionsduringtheyear | |||
| -Increaseincultivated | 3,018,864 | - | 3,018,864 |
| -Transferredtomature | (8,240,129) | 8,240,129 | - |
| 31December2020 | 7,607,557 | 248,758,101 | 256,365,658 |
| Accumulatedamortisation | |||
| 31December2019 | - | (50,921,508) | (50,921,508) |
| Chargefortheyear | - | (13,270,614) | (13,270,614) |
| 31December2020 | - | (64,192,122) | (64,192,122) |
| Carryingamount | |||
| 31December2020 | 7,607,557 | 184,565,979 | 192,173,536 |
| 31December2019 | 12,828,822 | 189,596,464 | 202,425,286 |
Asat31December2020,thereisnobiologicalassetwithownershiprestricted(31December2019:Nil).Asat31December2020,noprovisionforimpairmentofbiologicalassetoftheGroupwasrecognisedasthereisnoanyindicationexists(31December2019:Nil).13Intangibleassets
| Item | Landuserights | Softwarelicenses | Trademarks | Total |
| Originalbookvalue | ||||
| 31December2019 | 531,755,702 | 88,927,195 | 170,773,266 | 791,456,163 |
| Additionsduringtheyear | ||||
| -Purchase | 314,211 | 2,393,612 | 18,496,021 | 21,203,844 |
| -Transfersfromconstructioninprogress | - | 7,655,000 | - | 7,655,000 |
| 31December2020 | 532,069,913 | 98,975,807 | 189,269,287 | 820,315,007 |
| Accumulatedamortisation | ||||
| 31December2019 | (89,333,506) | (35,237,011) | (14,341,798) | (138,912,315) |
| Additionsduringtheyear | ||||
| -Chargefortheyear | (11,164,963) | (9,088,033) | (160,631) | (20,413,627) |
| Decreaseduringtheyear | ||||
| 31December2020 | (100,498,469) | (44,325,044) | (14,502,429) | (159,325,942) |
| Carryingamount | ||||
| 31December2020 | 431,571,444 | 54,650,763 | 174,766,858 | 660,989,065 |
| 31December2019 | 442,422,196 | 53,690,184 | 156,431,468 | 652,543,848 |
Asat31December2020,theGrouphaslanduserightwithinfiniteusefullivesofRMB30,746,186(31December2019:RMB30,589,474),representingthefreeholdlandheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstateunderrelevantChileandAustralialaws,onwhichtheamortisationisnotrequired.
Asat31December2020,theGrouphastrademarkwithinfiniteusefullivesofRMB154,901,004(31December2019:RMB154,674,985),whichisheldbyChileIndomitaWineGroupandAustraliaKilikanoonEstate.Therecoverableamountofthetrademarkisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflowsgeneratedfromtheassetgrouptowhichthesingleassetsoftrademarkrightbelongs.Themanagementpreparesthecashflowprojectionforfuture5years(the"projectingperiod")basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the"subsequentperiod").Thepretaxdiscountratesusedinthecashflowprojectionsare11.5%and12.8%,respectively.Akeyassumptionintheestimateoffuturecashflowsistherevenuegrowthrateintheprojectingperiod.SuchrevenuegrowthrateisdeterminedbasedontheindustryandtheexpectedgrowthrateofChileIndomitaWineGroupandAustraliaKilikanoonEstate.TheGrouprecognisesthetrademarkwithinfiniteusefullivesasintangibleassets,theimpairmentassessmentofwhichismadeattheendofeachreportingyear.Themanagementbelievesthatanyreasonablechangeoftheaboveassumptionswillnotresultinthetotalbookvalueoftheassetgrouptowhichthesingleassetsoftrademarkrightbelongsexceedingitsrecoverableamount.Accordingtotheresultofimpairmentassessment,bytheendof31December2020,themanagementbelievesthereisnoimpairmentlossonthosetrademarkswithinfiniteusefullivesoftheGroup.Asat31December2020,ownershiprestrictednetvalueofintangibleassetsisRMB206,920,456(31December2019:RMB212,495,435),referringtoNoteV.51.14Goodwill
(1)Changesingoodwill
Nameofinvesteeoreventsfrom
whichgoodwillarose
| Nameofinvesteeoreventsfromwhichgoodwillarose | Note | 31December2019 | Additionsduringtheyear | Disposalsduringtheyear | 31December2020 |
| Originalbookvalue | |||||
| EtablissementsRoulletFransac(“RoulletFransac”) | (a) | 13,112,525 | - | - | 13,112,525 |
| DicotPartners,S.L(“Dicot”) | (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 | - | - | 149,437,671 | |
| Impairmentprovision | (7,578,478) | (8,920,981) | - | (16,499,459) | |
| Carryingamount | 141,859,193 | (8,920,981) | - | 132,938,212 |
(a)TheGroupacquiredFransacSales,DicotandMirefleurs,ChileIndomitaWineGroupand
AustraliaKilikanoonEstateinDecember2013,September2015,July2017andJanuary2018respectively,resultinginrespectivegoodwillamountingtoRMB13,112,525,RMB92,391,901,RMB6,870,115andRMB37,063,130.Thegoodwillhadbeenallocatedtocorrespondingassetgroupsforimpairmenttesting.
(2)Provisionforimpairmentofgoodwill
TheGrouphasallocatedtheabovegoodwilltorelevantassetgroupsforimpairmenttesting.Therecoverableamountoftheassetgroupisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflows.Themanagementpreparesthecashflowprojectionforfuture5years(the"projectingperiod")basedonthelatestfinancialbudgetassumption,andestimatesthecashflowsafterthefuture5years(the"subsequentperiod").ThepretaxdiscountrateusedincalculatingtherecoverableamountsofFransacSales,Dicot,Mirefleurs,IndomitaWineandAustraliaKilikanoonEstateare12.6%,11.2%,11.5%and12.8%,respectively(2019:14.2%,11.4%,11.6%and12.8%).Thekeyassumptionisthegrowthrateofannualrevenuegrowthrateofrelevantsubsidiaries,whichiscomputedbasedontheexpectedgrowthrateofeachsubsidiaryandlong-termaveragegrowthratesofrelevantindustries.Otherrelevantkeyassumptionisbudgetgrossprofitmargin,whichisdeterminedbasedonthehistoricalperformanceofeachsubsidiaryanditsexpectationsformarketdevelopment.Accordingtotheresultsoftheimpairmenttest,theGroupfoundthattherecoverableamountoftheassetgroupincludinggoodwillofAustraliaKilikanoonEstateislowerthanitsbookvalue.Therefore,on31December2020,theprovisionforimpairmentofgoodwillwasRMB16,499,459.TheimpairmentlossamountingtoRMB8,920,981wasrecognisedinassetimpairmentlossin2020.15Long-termdeferredexpenses
Item
| Item | 31December2019 | Additionsduringtheyear | Amortisationfortheyear | 31December2020 |
| Landleaseprepayment | 52,129,414 | - | (788,199) | 51,341,215 |
| Landrequisitionfee | 41,460,260 | - | (1,880,339) | 39,579,921 |
| Greeningfee | 145,952,499 | 1,287,402 | (9,054,648) | 138,185,253 |
| Leaseholdimprovement | 35,871,673 | 48,910,962 | (4,336,456) | 80,446,179 |
| Others | 5,064,348 | 367,762 | (518,823) | 4,913,287 |
| Total | 280,478,194 | 50,566,126 | (16,578,465) | 314,465,855 |
16Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetsandliabilities
| Item | 31December2020 | 31December2019 | ||
| Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | Deductibleortaxabletemporarydifferences | Deferredtaxassets/(liabilities) | |
| Deferredtaxassets: | ||||
| Provisionforimpairmentofassets | 44,279,268 | 9,732,098 | 54,774,331 | 13,693,583 |
| Unrealisedprofitsofintra-grouptransactions | 313,043,226 | 78,260,807 | 482,394,726 | 120,598,682 |
| Unpaidbonus | 147,824,610 | 36,956,152 | 184,674,946 | 46,168,736 |
| Terminationbenefits | 16,274,352 | 4,068,588 | 24,833,512 | 6,208,378 |
| Deductibletaxlosses | 268,074,301 | 65,844,999 | 247,147,752 | 63,459,305 |
| Deferredincome | 52,653,609 | 11,378,631 | 70,643,437 | 15,422,659 |
| Sub-total | 842,149,366 | 206,241,275 | 1,064,468,704 | 265,551,343 |
| Deferredtaxliabilities: | ||||
| Revaluationduetobusinesscombinationsinvolvingentitiesnotundercommoncontrol | 49,156,771 | (12,022,613) | 51,829,561 | (14,691,424) |
(2)Detailsofunrecogniseddeferredtaxassets
Item
| Item | 2020 | 2019 |
| Deductibletaxlosses | 187,130,828 | 132,081,819 |
(3)Expirationofdeductibletaxlossesforunrecogniseddeferredtaxassets
| Year | 2020 | 2019 |
| 2020 | - | 5,718,454 |
| 2021 | 25,008,263 | 36,741,465 |
| 2022 | 21,367,869 | 26,609,674 |
| 2023 | 22,801,737 | 31,350,376 |
| 2024 | 42,088,453 | 31,661,850 |
| 2025 | 75,864,506 | - |
| Total | 187,130,828 | 132,081,819 |
17Othernon-currentassets
| Item | 2020 | 2019 |
| Royalty | 170,370,147 | 193,674,320 |
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theCompanymayusecertaintrademarksofChangyuGroupCompany,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup'sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.Accordingtotheaboveroyaltyagreement,ChangyuGroupcollectedatotalofRMB576,507,809forroyaltyfrom2013to2019,ofwhich51%wasusedtopromotetrademarkssuchasChangyuandtheproductofthiscontract,totallingRMB294,018,093.TheamountisusedforpromotionofChangyuandothertrademarksandtheproductsofthiscontract,totallingRMB62,250,368,thedifferenceisRMB231,768,615(includingtax).On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGrouppaysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon0.98%ofthesalesvolumeoftheGroup’scontractproductsusingthistrademark.Thearticleisamendedto:
TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.ChangyuGrouppromisedtooffsetthedifferenceofRMB231,768,615abovewiththeroyaltyforfouryears,i.e.from2019to2022.Ifitisnotsufficientfordeduction,therestwillberepaidinaone-offmannerin2023.Ifthereissurplus,thesurpluspartoftheroyaltywillbechargedfromtheyearwhenthesurplusoccurs.Astheamountisalong-termprerpayment,theCompanyrecognisestheamountasothernon-currentassetsandmeanwhileoffsetthesalesfee,i.e.royalty.Asat31December2020,theGroup'sroyaltyin2020wasRMB23,304,173(VATincluded).Whenthedifferenceisdeductedbytheabove-mentionedamount,thebalanceofroyaltyduefromChangyuGroupwasRMB170,370,147.
18Short-termloans
Short-termloansbycategory:
Item
| Item | 2020 | 2019 |
| Unsecuredloans | 619,149,908 | 661,067,617 |
| Mortgagedloans | 55,724,891 | 82,568,222 |
| Guaranteedloans | 14,215,916 | 10,677,905 |
| Total | 689,090,715 | 754,313,744 |
Asat31December2020,detailsofshort-termborrowingswereasfollows:
| Amount | Exchangerate | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | |
| RMB | % | % | ||||
| Creditloans(RMB) | 150,000,000 | 1.0000 | 150,000,000 | Floating | 1-yearLPR-0.005 | 3.35% |
| Creditloans(RMB) | 400,000,000 | 1.0000 | 400,000,000 | Floating | Annualbenchmarkinterestrate | 3.35% |
| Creditloans(EUR) | 1,697,075 | 8.0250 | 13,619,024 | Fixed | 1%-3.28% | 1%-3.28% |
| Creditloans(USD) | 8,490,000 | 6.5407 | 55,530,884 | Fixed | 1.26%-1.38% | 1.26%-1.38% |
| Mortgagedloans(EUR) | 3,683,730 | 8.0250 | 29,561,931 | Fixed | 0.35%-0.9% | 0.35%-0.9% |
| Mortgagedloans(USD) | 4,000,000 | 6.5407 | 26,162,960 | Fixed | 1.32% | 1.32% |
| Guaranteedloans(AUD) | 2,833,945 | 5.0163 | 14,215,916 | Fixed | 2.50% | 2.50% |
| Total | 689,090,715 |
?Asat31December2020,mortgagedloans(EUR)wereHaciendayVi?edosMarquesdelAtrio,S.L.U("Atrio")factoringofaccountsreceivablefrombanksincludingBancodeSabadell,S.A.ofEUR3,558,629(equivalentofRMB28,557,993)(31December2019:
RMB54,663,422).MortgagedloanswereAtriomortgagedEUR2,929,628(equivalentofRMB23,510,265)ofitslandtoPopularEspa?olofEUR125,101(equivalentofRMB1,003,938)(31December2019:RMB3,875,992).?On31December2020,ChileIndomitaWineGrouppledgeditsfixedassetstoBanco
ScotiabanktoborrowUSD4,000,000(equivalenttoRMB26,162,960)(31December2019:
RMB27,904,800).?On31December2020,thesecuredloanrepresentedthesecuredloanofAustralia
KilikanoonEstateofAUD2,833,945(equivalenttoRMB14,215,916)(31December2019:
RMB10,677,905).19Accountspayable
| Ageing | 2020 | 2019 |
| Within1year(inclusive) | 477,926,275 | 565,400,597 |
| Over1yearbutwithin2years(inclusive) | 2,173,356 | 2,255,083 |
| Over2yearsbutwithin3years(inclusive) | 1,277,767 | 3,007,686 |
| Over3years | 2,970,560 | 186,413 |
| Total | 484,347,958 | 570,849,779 |
Thereisnosignificantaccountspayablewithageingofmorethanoneyear.
20Advancepaymentsreceived
Detailsofadvancesfromcustomersareasfollows:
Item
| Item | 2020 | 2019 |
| Advancesfromcustomers | - | 128,907,605 |
Thereisnosignificantadvancesfromcustomerswithageingofmorethanoneyear.21Contractliabilities
| Item | Asat31December2020 | Asat1January2020 |
| Receiptinadvance | 118,210,799 | 115,054,878 |
| Withholdingsalesrebates | 16,862,481 | 11,855,592 |
| Total | 135,073,280 | 126,910,470 |
ContractliabilitiesprimarilyrelatetotheGroup’sadvancesfromsalescontractsofspecific
customersandthewithholdingsalesrebates.Relevantcontractliabilitiesarerecognisedas
revenuewhenthecontrolofthegoodsistransferredtothecustomer.22Employeebenefitspayable
(1)Employeebenefitspayable:
| Note | 31December2019 | Additionsduringtheyear | Decreaseduringtheyear | 31December2020 | |
| Short-termemployeebenefits | (2) | 215,231,685 | 439,138,855 | (482,194,455) | 172,176,085 |
| Post-employmentbenefits-definedcontributionplans | (3) | 736,147 | 36,601,589 | (37,008,262) | 329,474 |
| Terminationbenefits | 24,833,512 | 1,542,160 | (10,101,320) | 16,274,352 | |
| Total | 240,801,344 | 477,282,604 | (529,304,037) | 188,779,911 |
(2)Short-termemployeebenefits
| 31December2019 | Additionsduringtheyear | Decreaseduringtheyear | 31December2020 | |
| Salaries,bonuses,allowances | 218,360,023 | 391,442,192 | (439,524,904) | 170,277,311 |
| Staffwelfare | 2,001,589 | 13,058,813 | (13,325,679) | 1,734,723 |
| Socialinsurance | 567,446 | 18,919,443 | (19,146,156) | 340,733 |
| Medicalinsurance | 567,446 | 18,085,064 | (18,311,777) | 340,733 |
| Work-relatedinjuryinsurance | - | 699,316 | (699,316) | - |
| Maternityinsurance | - | 135,063 | (135,063) | - |
| Housingfund | 14,195 | 12,761,086 | (12,747,784) | 27,497 |
| Labourunionfee,staffandworkers’educationfee | 1,934,209 | 2,957,321 | (3,016,738) | 1,874,792 |
| Sub-total | 222,877,462 | 439,138,855 | (487,761,261) | 174,255,056 |
| Less:Non-currentliabilities | 7,645,777 | - | (5,566,806) | 2,078,971 |
| Total | 215,231,685 | 439,138,855 | (482,194,455) | 172,176,085 |
(3)Post-employmentbenefits-definedcontributionplans
31December2019
| 31December2019 | Additionsduringtheyear | Decreaseduringtheyear | 31December2020 | |
| Basicpensioninsurance | 736,137 | 35,667,206 | (36,073,879) | 329,464 |
| Unemploymentinsurance | 10 | 934,383 | (934,383) | 10 |
| Total | 736,147 | 36,601,589 | (37,008,262) | 329,474 |
PursuanttotheNoticeoftheMinistryofHumanResourcesandSocialSecurity,theMinistryofFinanceandtheStateTaxationAdministrationonExtendingtheImplementationPeriodofthePhasedReductionandExemptionofthePolicyofCorporateSocialInsurancePremiums(RenSheBuFa[2020]No.49),fromFebruary2020totheendofJune2020,allprovinces(exceptHubeiProvince)implementedthepolicyofhalvingthepaymentofthreetypesofsocialinsurances(i.e.basicendowmentinsurance,unemploymentinsuranceandwork-relatedinjuryinsurance)forinsuredentitiesoflargeenterprises;fromFebruary2020totheendofDecember2020,allprovincesimplementedtheexemptionpolicyforthepaymentofthreetypesofsocialinsurancesforinsuredentitlesofmedium,smallandmicroenterprises.TheCompany’sbranchesandsubsidiaries,suchasYantaiChangyuPioneerWineSalesCo.,Ltd.,appliedthepreferentialpoliciesforlargeenterprisesfromFebruary2020totheendofJune2020andthepaymentofthreetypesofsocialinsuranceswasleviedbyhalf;theCompany’sbranchesandsubsidiaries,suchasHangzhouChangyuWineSalesCo.,Ltd.appliedthepreferentialpoliciesformedium,smallandmicroenterprisesfromFebruary2020totheendofDecember2020andthepaymentofthreetypesofsocialinsuranceswasexempted.23Taxespayable
| Item | 2020 | 2019 |
| Value-addedtax | 25,853,102 | 88,590,035 |
| Consumptiontax | 42,076,231 | 48,497,550 |
| Corporateincometax | 130,621,524 | 217,226,553 |
| Individualincometax | 614,344 | 843,601 |
| Taxontheuseofurbanland | 2,327,666 | 2,263,012 |
| Educationsurcharges | 2,498,374 | 4,858,987 |
| Urbanmaintenanceandconstructiontax | 3,429,038 | 6,726,425 |
| Others | 5,992,534 | 6,614,132 |
| Total | 213,412,813 | 375,620,295 |
24Otherpayables
| Note | 31December2020 | 31December2019 | |
| Interestpayable | 553,471 | 758,047 | |
| Dividendspayable | 1,003,125 | 1,866,559 | |
| Others | (1) | 384,548,930 | 453,855,783 |
| Total | 386,105,526 | 456,480,389 |
(1)Others
(a)Detailsofothersbynatureareasfollows:
Item
| Item | 2020 | 2019 |
| Depositpayabletodealer | 177,129,582 | 164,994,995 |
| Advertisingfeepayable | 50,444,091 | 91,091,404 |
| Equipmentandconstructionfeepayable | 51,381,563 | 72,004,009 |
| Freightchargespayable | 26,061,359 | 31,960,557 |
| Depositsduetosuppliers | 14,836,302 | 14,081,530 |
| Contractingfeepayable | 9,656,066 | 16,997,685 |
| Staffdeposit | 359,282 | 1,866,765 |
| Others | 54,680,685 | 60,858,838 |
| Total | 384,548,930 | 453,855,783 |
(b)Significantothersagedoveroneyear:
| Item | Balanceattheendoftheyear | Reasonswhynotsettled |
| WeichengBranchofBureauofLandandResourcesinXianyangCity | 16,508,909 | Projectsubjecttoacceptance |
25Othercurrentliabilities
| Item | Asat31December2020 | Asat1January2020 | Asat31December2019 |
| Taxtobetransferredoutassales | 14,820,653 | 13,852,726 | - |
26Non-currentliabilitiesduewithinoneyear
Non-currentliabilitiesduewithinoneyearbycategoryareasfollows:
| Item | 2020 | 2019 |
| Long-termloansduewithinoneyear | 111,311,890 | 116,826,221 |
| Long-termpayablesduewithinoneyear | 22,000,000 | 34,000,000 |
| Total | 133,311,890 | 150,826,221 |
27Long-termloans
(1)Long-termloansbycategory
| Item | 2020 | 2019 |
| Creditloans | 220,219,258 | 136,749,730 |
| Guaranteedloans | 91,445,600 | 105,093,000 |
| Mortgagedloans | - | 3,875,992 |
| Less:Long-termloansduewithinoneyear | 111,311,890 | 116,826,221 |
| Total | 200,352,968 | 128,892,501 |
Asat31December2020,detailsoflong-termborrowingswereasfollows:
Amount
| Amount | Exchangerate | Amount | Natureofinterestrate | Interestrate | Interestrateattheendoftheyear | Long-termloansduewithinoneyear | Long-termloansdueafteroneyear | |
| RMB | % | % | ||||||
| Creditloans(EUR) | 27,441,652 | 8.0250 | 220,219,258 | Fixed | 1.0%-1.7% | 1.25%-3.28% | 86,311,890 | 133,907,368 |
| Guaranteedloans(RMB) | 31,250,000 | 1.0000 | 31,250,000 | Floating | 90%of5-yearLPR | 4.275% | 25,000,000 | 6,250,000 |
| Guaranteedloans(AUD) | 12,000,000 | 5.0163 | 60,195,600 | Fixed | 2.50% | 2.50% | - | 60,195,600 |
| Total | 311,664,858 | 111,311,890 | 200,352,968 |
Asat31December2020,Creditloans(EUR)wereEUR27,441,652borrowedbyBancoSabadell,Bankia,BancoSantander,BBVA,CajaRuraldeNavarretc.(equivalentofRMB220,219,258)(31December2019:RMB136,749,730).Guaranteedloans(RMB)werelong-termborrowingsofRMB31,250,000oftheR&DCentre,asubsidiaryoftheCompany(31December2019:RMB56,250,000).AustraliaKilikanoonEstatehasborrowedAUD12,000,000(equivalentofRMB60,195,600)(31December2019:RMB48,843,000)fromANZBankanditwasguaranteedbytheCompany.28Long-termpayables
| Item | 2020 | 2019 |
| AgriculturalDevelopmentFundofChina("CADF") | 108,000,000 | 225,000,000 |
| Less:Long-termpayablesduewithinoneyear | 22,000,000 | 34,000,000 |
| Balanceoflong-termpayables | 86,000,000 | 191,000,000 |
In2016,RMB305,000,000fromCADFwasinvestedinR&DCentre,CADFaccountedfor
37.9%oftheregisteredcapital.Accordingtotheinvestmentagreement,CADFwillrecoveryinvestmentfundsover10years,theinvestmentincomereceivedequalto1.2%oftheremainingunpaidprincipalperannum.Inadditiontothefixedincome,CADFwillnolongerenjoyotherprofitsorbearthelossofR&DCentre.Therefore,althoughtheinvestmentinR&DCentre,nominallyequityinvestment,isactuallyadebtinvestment(financialdiscountloan).TheGrouptakethisinvestmentaslong-termpayables,whichmeasuredinamortizedcost.TheGrouprepaystheprincipalofRMB117,000,000in2020.RefertoNoteV.51fordetailsofmortgagedandpledgedassets.
| Balanceoflong-termpayables | Returnoninvestment | Investmentdate | Terminationdateofrepayment | Duewithinoneyear | Dueafteroneyear | Mortgagedandpledgedassets |
| RMB | RMB | RMB | ||||
| 108,000,000 | 1.2% | 29February2016 | 28February2025 | 22,000,000 | 86,000,000 | Fixedassetsandintangibleassets |
29Deferredincome
| Item | 31December2019 | Additionsduringtheyear | Decreaseduringtheyear | 31December2020 |
| Governmentgrants | 70,701,288 | 1,367,400 | (19,415,079) | 52,653,609 |
Governmentgrants:
Liability
| Liability | 31December2019 | Additionsofgovernmentgrantsduringtheyear | Amountsrecognisedinotherincomeduringtheyear | 31December2020 | Relatedtoassets/income |
| Industrialdevelopmentsupportproject | 28,700,000 | - | (4,100,000) | 24,600,000 | Governmentgrantsrelatedtoassets |
| FixedassetinvestmentrewardofShiheziChateauproject | 4,716,600 | - | (2,280,000) | 2,436,600 | Governmentgrantsrelatedtoassets |
| ShandongPeninsulaBlueEconomicAreaconstructionfunds | 4,000,000 | - | (2,000,000) | 2,000,000 | Governmentgrantsrelatedtoassets |
| Xinjiangindustrialrevitalisationandtechnologicaltransformationproject | 14,220,000 | - | (1,422,000) | 12,798,000 | Governmentgrantsrelatedtoassets |
| Specialgovernmentgrantforinfrastructure | 3,180,000 | - | (1,060,000) | 2,120,000 | Governmentgrantsrelatedtoassets |
| Rawwinefermentationproject | 1,869,600 | - | (1,434,900) | 434,700 | Governmentgrantsrelatedtoassets |
| Winefermentationcapacityconstruction(Huanren)project | 2,800,000 | - | (400,000) | 2,400,000 | Governmentgrantsrelatedtoassets |
| Engineeringtechnologytransformationofinformationsystemproject | 2,320,000 | - | (580,000) | 1,740,000 | Governmentgrantsrelatedtoassets |
| Liquorelectronictrackingproject | 1,858,203 | - | (667,053) | 1,191,150 | Governmentgrantsrelatedtoassets |
| Infrastructureconstructionproject | 350,000 | - | (350,000) | - | Governmentgrantsrelatedtoassets |
| Specialfundforefficientwater-savingirrigationproject | 1,877,000 | - | (562,000) | 1,315,000 | Governmentgrantsrelatedtoassets |
| Subsidyforeconomicandenergy-savingtechnologicaltransformationprojects | 898,100 | - | (128,300) | 769,800 | Governmentgrantsrelatedtoassets |
| Wineindustrydevelopmentproject | 372,000 | - | (186,000) | 186,000 | Governmentgrantsrelatedtoassets |
| SubsidyformechanicdevelopmentofPenglaiDaliuhangBase | 265,397 | - | (26,539) | 238,858 | Governmentgrantsrelatedtoassets |
| Coalsubsidy | 201,500 | - | (201,500) | - | Governmentgrantsrelatedtoassets |
| Cross-bordere-commerceproject | 839,958 | - | (638,157) | 201,801 | Relatedtoincome |
| Travellingdevelopmentfundsubsidyproject | 560,000 | - | (560,000) | - | Relatedtoincome |
| Waterpollutioncontrolprojectfund | 92,930 | - | (92,930) | - | Relatedtoincome |
| Subsidyforboilerreconstructionanddemolition | 80,000 | - | (10,000) | 70,000 | Relatedtoincome |
| Specialfundsforthedevelopmentofenterprises | 1,500,000 | - | (1,500,000) | - | Relatedtoincome |
| PrizefromIndustrialDesignCompetitionofYantaiMayor'sCup | - | 100,000 | (50,000) | 50,000 | Relatedtoincome |
| SpecialFundsforInnovation-DrivenDevelopmentofYantaiCity | - | 500,000 | (398,300) | 101,700 | Relatedtoincome |
| Total | 70,701,288 | 600,000 | (18,647,679) | 52,653,609 |
30Othernon-currentliabilities
Item
| Item | 31December2020 | 31December2019 |
| Employeebenefitspayable | 2,078,971 | 7,645,777 |
Asat31December2020,employeebenefitrepresentsdepositfrombonusaccruedformanagersandabove.Thebonusisexpectedtobepaidin2022.31Sharecapital
| At31December2019and31December2020 | |
| UnrestrictedAshares | 453,460,800 |
| Bshares | 232,003,200 |
| Totalofunrestrictedshares | 685,464,000 |
32Capitalreserve
| Item | 31December2019 | Additionsduringtheyear | Decreaseduringtheyear | 31December2020 |
| Sharepremium | 636,858,772 | - | (117,806,600) | 519,052,172 |
| Others | 5,916,588 | - | - | 5,916,588 |
| Total | 642,775,360 | - | (117,806,600) | 524,968,760 |
ThebalanceamountingtoRMB28,286,811betweenthelong-termequityinvestmentacquiredduetothepurchaseofminorityshareholdingandtheshareofnetassetscontinuouslycalculatedsincethedateofacquisitionbythesubsidiarybasedontheproportionofnewlyincreasedshareholdingshallbeoffsetagainstthecapitalreserve.Detailsofnon-controllinginterestsacquiredduringtheyear,seeNote-VII.2.Duringthereportingperiod,theGrouppurchasedtheequityofCultureDevelopment,whichconstitutedabusinesscombinationinvolvingentitiesundercommoncontrol.TheGroupreducedthecapitalreservebyRMB89,519,789basedontheconsiderationofcombinationpaidonthedateofcombination.PleaserefertoNoteVIfordetails.33Othercomprehensiveincome
| Item | BalanceatthebeginningoftheyearattributabletoshareholdersoftheCompany | Accruedduringtheyear | BalanceattheendoftheyearattributabletoshareholdersoftheCompany | ||||
| Before-taxamount | Less:Previouslyrecognisedamounttransferredtoprofitorloss | Less:Incometaxexpenses | Net-of-taxamountattributabletoshareholdersoftheCompany | Net-of-taxamountattributabletonon-controllinginterests | |||
| Itemsthatmaybereclassifiedtoprofitorloss | |||||||
| Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements | (4,235,583) | 5,171,635 | - | - | 4,811,712 | 359,923 | 576,129 |
34Surplusreserve
Item
| Item | 31December2020 | 31December2019 |
| Statutorysurplusreserve | 342,732,000 | 342,732,000 |
InaccordancewiththeCompanyLawandtheArticlesofAssociationCompany,theCompanyappropriated10%ofitsnetprofittostatutorysurplusreserve.Theappropriationtothestatutorysurplusreservemaybeceasedwhentheaccumulatedappropriationreachesover50%oftheregisteredcapitaloftheCompany.TheCompanydoesnotappropriatenetprofittothesurplusreservein2019assurplusreserveoftheCompanyisabove50%oftheregisteredcapital.TheCompanycanappropriatediscretionarysurplusreserveafterappropriationofthestatutorysurplusreserve.Discretionarysurplusreservecanbeutilisedtooffsetthedeficitorincreasethesharecapitalafterapproval.35Retainedearnings
| Item | Note | 2020 | 2019 |
| Retainedearningsatthebeginningoftheyear(beforeadjustment) | 8,735,513,044 | 8,008,982,547 | |
| Impactofretrospectiveadjustmentofaccountingstandards | (1)(a) | - | (7,540,537) |
| Impactofbusinesscombinationinvolvingentitiesundercommoncontrol | (1)(b) | - | 12,482,138 |
| Retainedearningsatthebeginningoftheyear(afteradjustment) | 8,735,513,044 | 8,013,924,148 | |
| Add:NetprofitsfortheyearattributabletoshareholdersoftheCompany | 470,860,587 | 1,141,367,296 | |
| Less:Dividendstoordinaryshares | (2) | (479,824,800) | (411,278,400) |
| DistributionofdividendstoexistingshareholdersfromCultureDevelopment | (12,457,076) | (8,500,000) | |
| Retainedearningsattheendoftheyear | (3) | 8,714,091,755 | 8,735,513,044 |
(1)Adjustmentsonbeginningretainedearningsareasfollows:
(a)Asaresultoftheimplementationofthenewfinancialinstrumentstandardsbythe
Groupin2019,theundistributedprofitatthebeginningof2019wasreducedbyRMB7,540,537.(b)SincetheacquisitionoftheequityofCultureDevelopmentconstitutedacombination
undercommoncontrol,theundistributedprofitatthebeginningof2019increasedbyRMB12,482,138(seeNoteVI).
(2)Dividendsinrespectofordinarysharesdeclaredduringtheyear
Pursuanttotheshareholders’approvalattheshareholders’generalmeetingon27May2020,acashdividendofRMB0.7pershare(2019:RMB0.6pershare),totallingRMB479,824,800(2019:RMB411,278,400),wasdeclaredandpaidtotheCompany’sordinaryshareholderson10July2020.
(3)Retainedearningsattheendoftheyear
Asat31December2020,theconsolidatedretainedearningsattributabletotheCompanyincludedanappropriationofRMB58,021,644(2019:RMB56,059,538)tosurplusreservemadebythesubsidiaries.36Operatingincomeandoperatingcosts
Item
| Item | 2020 | 2019 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 3,325,812,768 | 1,479,923,326 | 4,964,988,674 | 1,839,985,387 |
| Otheroperatingactivities | 69,589,233 | 23,954,081 | 109,037,225 | 37,673,351 |
| Total | 3,395,402,001 | 1,503,877,407 | 5,074,025,899 | 1,877,658,738 |
(1)Detailsof2020operatingincome:
| Item | 2020 | |
| Income | Cost | |
| Principalactivities | 3,325,812,768 | 1,479,923,326 |
| Otheroperatingactivities | 69,589,233 | 23,954,081 |
| Total | 3,395,402,001 | 1,503,877,407 |
| Including:Revenuefromcontractswithcustomers | 3,393,386,515 | 1,502,467,908 |
| Rentincome | 2,015,486 | 1,409,499 |
Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2020 |
| Bytypeofgoodsorservices | |
| -Liquor | 3,325,812,768 |
| -Others | 67,573,747 |
| Bytimingoftransferringgoodsorservices | |
| -Revenuerecognisedatapointintime | 3,393,386,515 |
(2)Detailsof2019operatingincome:
| 2019 | |
| Principalactivities | |
| -Sellinggoods | 4,964,988,674 |
| Otheroperatingactivities | |
| -Rentincome | 2,015,486 |
| -Others | 107,021,739 |
| Total | 5,074,025,899 |
37Taxesandsurcharges
Item
| Item | 2020 | 2019 |
| Consumptiontax | 120,563,955 | 159,206,181 |
| Urbanmaintenanceandconstructiontax | 23,169,608 | 36,525,428 |
| Educationsurcharges | 16,756,851 | 26,728,398 |
| Propertytax | 26,843,414 | 30,538,234 |
| Taxontheuseofurbanland | 11,332,778 | 11,219,740 |
| Stampduty | 3,650,250 | 3,117,257 |
| Others | 1,472,418 | 2,553,443 |
| Total | 203,789,274 | 269,888,681 |
38Sellinganddistributionexpenses
| Item | 2020 | 2019 |
| Salariesandbenefits | 289,527,114 | 372,247,597 |
| Marketingfee | 200,259,537 | 378,706,496 |
| Labourservicefee | 58,723,298 | 72,851,229 |
| Depreciationexpense | 41,224,340 | 42,943,495 |
| Storagerental | 35,744,058 | 38,773,610 |
| Advertisingfee | 22,724,095 | 47,339,106 |
| Royalty | 21,985,068 | (182,711,622) |
| Travellingexpenses | 20,065,075 | 26,383,799 |
| Designandproductionfee | 15,427,023 | 27,238,641 |
| Conferencefee | 15,387,699 | 42,369,153 |
| Water,electricityandgasfee | 13,427,340 | 14,773,735 |
| Transportcharges | - | 122,802,027 |
| Others | 53,757,838 | 84,588,119 |
| Total | 788,252,485 | 1,088,305,385 |
39Generalandadministrativeexpenses
| Item | 2020 | 2019 |
| Salariesandbenefits | 73,329,053 | 90,477,287 |
| Depreciationexpenses | 72,637,754 | 61,831,915 |
| Repaircosts | 23,714,008 | 28,555,032 |
| Administrativeexpenses | 20,927,794 | 23,101,636 |
| Amortisationexpenses | 19,568,760 | 18,373,495 |
| Amortisationofgreeningfee | 18,187,244 | 18,409,031 |
| Rentalcharge | 9,969,494 | 12,938,864 |
| Safetyproductioncosts | 7,831,443 | 9,510,828 |
| Securityandcleaningfee | 7,650,813 | 8,124,135 |
| Contractingfee | 7,603,536 | 13,377,255 |
| Others | 29,226,567 | 27,205,178 |
| Total | 290,646,466 | 311,904,656 |
40Financialexpenses
Item
| Item | 2020 | 2019 |
| Interestexpensesfromloansandpayables | 35,187,642 | 50,212,059 |
| Less:Borrowingcostscapitalised | 797,021 | 1,141,265 |
| Less:Financialexpensesoffsetbyfiscalinterestsubsidy | 1,500,000 | 7,500,000 |
| Interestincomefromdepositsandreceivables | (14,247,274) | (12,327,441) |
| Netexchange(gains)/losses | (274,140) | 3,611,536 |
| Otherfinancialexpenses | 2,072,506 | 2,447,340 |
| Total | 20,441,713 | 35,302,229 |
Fiscalinterestsubsidyduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.41Otherincome
| Item | 2020 | 2019 | Relatedtoassets/income |
| Rewardonthefixedassetinvestment | 2,280,000 | 2,280,000 | Governmentgrantsrelatedtoassets |
| ShandongPeninsulaBlueEconomicAreaconstructionfunds | 2,000,000 | 2,000,000 | Governmentgrantsrelatedtoassets |
| Industrialdevelopmentsupportproject | 4,100,000 | 4,100,000 | Governmentgrantsrelatedtoassets |
| Others-Governmentgrantsrelatedtoassets | 7,018,292 | 7,567,504 | Governmentgrantsrelatedtoassets |
| Specialfundsforthedevelopmentofenterprises | 23,068,826 | 37,449,390 | Relatedtoincome |
| Taxrefunds | 12,324,440 | 8,724,775 | Relatedtoincome |
| Strongindustrialcityspecialfunds | 792,600 | 2,518,700 | Relatedtoincome |
| Others-Governmentgrantsrelatedtoincome | 21,479,462 | 12,730,472 | Relatedtoincome |
| Total | 73,063,620 | 77,370,841 |
Otherincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.42Investment(losses)/income
Investment(losses)/incomebyitem
| Item | 2020 | 2019 |
| Long-termequityinvestmentlossesunderequitymethod | (2,217,623) | (1,120,928) |
| Investmentincomefromdisposaloflong-termequityinvestments | - | 6,233,661 |
| Total | (2,217,623) | 5,112,733 |
43Creditreversal/(losses)
| Item | 2020 | 2019 |
| Accountsreceivable | 4,348,309 | (6,678,498) |
| Total | 4,348,309 | (6,678,498) |
44Impairmentlosses
Item
| Item | 2020 | 2019 |
| Inventories | 5,705,003 | 4,503,589 |
| Fixedassets | - | (17,478,027) |
| Goodwill | (8,920,981) | (7,578,478) |
| Total | (3,215,978) | (20,552,916) |
45(Loss)/Gainsfromassetdisposals
| Item | 2020 | 2019 |
| (Loss)/Gainsfromdisposaloffixedassets | (1,180,655) | 39,015 |
Gainsfromdisposalofassetsduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.46Non-operatingincomeandnon-operatingexpenses
(1)Non-operatingincomebyitemisasfollows:
| Item | 2020 | 2019 |
| Inventorystocktakesurplus | 3,823,905 | 134,563 |
| Insurancecompensation | 3,067,670 | 90,000 |
| Netincomefromfine | 3,098,877 | 2,593,116 |
| Others | 1,918,058 | 8,203,624 |
| Total | 11,908,510 | 11,021,303 |
Non-operatingincomeduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.
(2)Non-operatingexpenses
| Item | 2020 | 2019 |
| Compensation,penaltyandfineexpenses | 347,635 | 403,975 |
| Donationsprovided | 1,048,300 | 699,296 |
| Others | 306,923 | 2,531,281 |
| Total | 1,702,858 | 3,634,552 |
Non-operatingexpensesduringreportingperiodhasbeenincludedinnon-recurringgainsandlosses.47Incometaxexpenses
| Item | Note | 2020 | 2019 |
| Currenttaxexpensefortheyearbasedontaxlawandregulations | 135,163,243 | 389,906,096 | |
| Changesindeferredtaxassets/liabilities | (1) | 56,641,257 | 15,691,224 |
| Total | 191,804,500 | 405,597,320 |
(1)Theanalysisofchangesindeferredtaxissetoutbelow:
Item
| Item | 2020 | 2019 |
| Originationoftemporarydifferences | 56,641,257 | 15,691,224 |
| Total | 56,641,257 | 15,691,224 |
(2)Reconciliationbetweenincometaxexpensesandaccountingprofit:
| Item | 2020 | 2019 |
| Profitbeforetaxation | 664,866,563 | 1,547,603,020 |
| Estimatedincometaxat25% | 166,216,641 | 386,900,755 |
| Effectofdifferenttaxratesappliedbysubsidiaries | 1,310,363 | (707,938) |
| Effectofnon-deductiblecosts,expenseandlosses | 7,185,074 | 7,224,709 |
| Effectofdeductiblelossesofdeferredtaxassetsnotrecognisedfortheyear | 16,417,337 | 7,397,810 |
| Deferredtaxassetswritten-off | 675,085 | 4,781,984 |
| Incometaxexpenses | 191,804,500 | 405,597,320 |
48Basicearningspershareanddilutedearningspershare
(1)Basicearningspershare
BasicearningspershareiscalculatedasdividingconsolidatednetprofitattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
| 2020 | 2019 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 470,860,587 | 1,141,367,296 |
| Weightedaveragenumberofordinarysharesoutstanding | 685,464,000 | 685,464,000 |
| Basicearningspershare(RMB/share) | 0.69 | 1.67 |
Weightedaveragenumberofordinarysharesiscalculatedasfollows:
| 2020 | 2019 | |
| Issuedordinarysharesatthebeginningoftheyear | 685,464,000 | 685,464,000 |
| Weightedaveragenumberofordinarysharesattheendoftheyear | 685,464,000 | 685,464,000 |
(2)TheGroupdoesnothaveanypotentialdilutiveordinarysharesforthelistedyears.49Cashflowstatement
(1)Proceedsrelatingtootheroperatingactivities:
| Item | 2020 | 2019 |
| Governmentgrants | 56,515,941 | 69,311,576 |
| Penaltyincome | 3,098,877 | 2,593,116 |
| Interestincomefrombank | 14,396,201 | 12,463,811 |
| Others | 7,186,229 | 12,149,263 |
| Total | 81,197,248 | 96,517,766 |
(2)Paymentsrelatingtootheroperatingactivities:
Item
| Item | 2020 | 2019 |
| Sellinganddistributionexpenses | 399,973,695 | 770,753,478 |
| Generalandadministrativeexpenses | 127,666,411 | 138,738,416 |
| Others | 24,250,891 | 12,856,014 |
| Total | 551,890,997 | 922,347,908 |
(3)Proceedsrelatingtootherfinancingactivities:
| Item | 2020 | 2019 |
| Cashpaidforacquisitionofminorityinterests | 62,966,747 | 11,619,552 |
50Supplementaryinformationoncashflowstatement
(1)Supplementtocashflowstatement
a.Reconciliationofnetprofittocashflowsfromoperatingactivities:
| Item | 2020 | 2019 |
| Netprofit | 473,062,063 | 1,142,005,700 |
| Add:Provisionsforimpairmentofassets | 3,215,978 | 20,552,916 |
| Credit(reversal)/losses | (4,348,309) | 6,678,498 |
| Depreciationoffixedassetsandinvestmentproperty | 298,224,327 | 306,907,536 |
| Amortisationofintangibleassets | 20,413,627 | 20,194,590 |
| Amortisationoflong-termdeferredexpenses | 16,578,465 | 15,475,669 |
| Amortisationofbiologicalassets | 13,270,614 | 12,722,828 |
| Losses/(Gains)fromdisposaloffixedassets,intangibleassets,andotherlong-termassets | 1,338,570 | (39,015) |
| Financialexpenses | 36,134,118 | 49,520,411 |
| Royalty | 21,985,068 | (182,711,622) |
| Investmentlosses/(income) | 2,217,623 | (5,112,733) |
| Decreaseindeferredtaxassets | 59,310,068 | 23,010,447 |
| Decreaseindeferredtaxliabilities | (2,668,811) | (7,319,223) |
| Increaseingrossinventories | (38,192,093) | (163,688,318) |
| Increaseinoperatingreceivables | (41,443,296) | (288,772,895) |
| Decreaseinoperatingpayables | (353,951,339) | (100,572,429) |
| Netcashflowsfromoperatingactivities | 505,146,673 | 848,852,360 |
b.Significantinvestingandfinancingactivitiesnotrequiringtheuseofcash:
| Item | 2020 | 2019 |
| Paymentofintangibleassetsandotherlong-termassetsbybankacceptances | 141,440,165 | 165,716,961 |
c.Changeincashandcashequivalents:
Item
| Item | 2020 | 2019 |
| Cashequivalentsattheendoftheyear | 1,052,665,105 | 1,397,399,470 |
| Less:Cashequivalentsatthebeginningoftheyear | 1,397,399,470 | 1,236,286,117 |
| Net(dercrease)/increaseincashandcashequivalents | (344,734,365) | 161,113,353 |
(2)Informationonacquisitionordisposalofsubsidiariesandotherbusinessunitsduringtheyear:
Informationonacquisitionofsubsidiariesandotherbusinessunits:
| 2020 | 2019 | |
| Considerationforacquiringsubsidiariesandotherbusinessunits | 89,519,789 | - |
| Cashorcashequivalentspaidduringtheyearforacquiringsubsidiariesandotherbusinessunitsduringtheyear | 89,519,789 | - |
| Including:CultureDevelopment | 89,519,789 | - |
| Less:Cashandcashequivalentsheldbydisposedsubsidiariesandotherbusinessunits | - | - |
| Netcashpaidfortheacquisition | 89,519,789 | - |
(3)Detailsofcashandcashequivalents
| Item | 2020 | 2019 |
| Cashatbankandonhand | ||
| Including:Cashonhand | 19,637 | 65,195 |
| Bankdepositsavailableondemand | 1,052,645,468 | 1,397,334,275 |
| Closingbalanceofcashandcashequivalents | 1,052,665,105 | 1,397,399,470 |
51Assetswithrestrictiveownershiptitleorrightofuse
| Item | Openingbalance | Balanceattheendoftheyear | Reasonforrestriction |
| Cashatbankandonhand | 93,882,705 | 67,996,762 | R&DCentremortgageforlong-termpayablesetc. |
| Accountreceivable(i) | 54,663,422 | 28,557,991 | Short-termborrowingsmortgagefromAtrio |
| Fixedassets | 344,670,852 | 333,748,819 | R&DCentremortgageforlong-termpayablesandlong-termandshort-termborrowings |
| Intangibleassets | 212,495,435 | 206,920,456 | R&DCentremortgageforlong-termpayables |
| Total | 705,712,414 | 637,224,028 |
(i)Asat31December2020,theamountofaccountsreceivablewithrestrictedownership
isEUR3,558,628(equivalentofRMB28,557,991),whichreferstoaccountsreceivableAtrioconductedforfactoringfromBancodeSabadell,S.A.Etc.(31December2019:
EUR6,994,232,equivalentofRMB54,663,422)
VIChangeofconsolidationscope
Businesscombinationinvolvingentitiesundercommoncontrol
(1)Businesscombinationsinvolvingentitiesundercommoncontrolduringtheyear
Nameofacquiree
| Nameofacquiree | Proportionofequityinterestsacquiredinbusinesscombination | Basisforbusinesscombinationundercommoncontrol | AcquisitionDate | Basisfordeterminationofacquisitiondate | Fromthebeginningoftheyeartotheacquisitiondate | 2019 | |||
| Income | Netprofit | Netcashoutflow | Income | Netprofit | |||||
| CultureDevelopment | 100% | TheCompanyandCultureDevelopmentwerecontrolledbyChangyuGroupbeforethecombinationonanon-transitionalbasis | Asat1July2020 | Acquisitionofeffectivecontrol | 39,533,385 | 10,730,129 | 3,057,305 | 82,390,613 | 11,709,978 |
CultureDevelopmentisacompanyestablishedinZhifuDistrict,YantaiCityon18May2018.ItsheadquartersisbasedinZhifuDistrict,YantaiCity.Itismainlyengagedinthemanagementoftouristattractions,thedevelopmentoftourismresourcesandtheprovisionofculturaltourismservices.
(2)Acquisitioncost
| Acquisitioncost | CultureDevelopment |
| Cash | 89,519,789 |
| Total | 89,519,789 |
(3)Carryingvaluesofassetsandliabilitiesoftheacquireeattheacquisitiondate
| CultureDevelopment | ||
| Acquisitiondate | 31December2019 | |
| Assets | ||
| Cashatbankandonhand | 8,238,501 | 11,295,806 |
| Receivables | 4,932,103 | 493,028 |
| Receivablesunderfinancing | 50,000 | 800,000 |
| Prepayments | 41,339 | 56,619 |
| Otherreceivables | 74,448,103 | 25,334,395 |
| Inventories | 20,656,182 | 31,737,700 |
| Fixedassets | 4,379,150 | 49,900,202 |
| Constructioninprogress | 560,463 | 597,493 |
| Long-termdeferredexpenses | 2,673,135 | 2,882,786 |
| Liabilities: | ||
| Payables | 3,994,056 | 9,251,396 |
| Receiptinadvance | 4,131,134 | 8,298,105 |
| Taxespayable | 1,893,962 | (1,127,059) |
| Otherpayables | 13,480,254 | 10,146,379 |
| Netasset | 92,479,570 | 96,529,208 |
| Less:Non-controllinginterests | - | 1,948,333 |
| Netassetsacquired | 92,479,570 | 94,580,875 |
CultureDevelopmentadoptedaccountingpoliciesdifferentfromthoseadoptedinthepreparationoftheCompany’sfinancialstatementsbeforecombination.Ontheacquisitiondate,theCompanyadjustedthefinancialstatementspreparedbyCultureDevelopmentundertheaccountingpoliciesadoptedinthepreparationoftheCompany’sfinancialstatements.
VII.Interestsinotherentities1Interestsinsubsidiaries
(1)CompositionoftheGroup
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| XinjiangTianzhuWineCo.,Ltd.(“XinajingTianzhu”) | Shihezi,Xinjiang,China | Shihezi,Xinjiang,China | Manufacturing | RMB75,000,000 | 60 | - | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| EtablissementsRoulletFransac(“RoulletFransac”) | Cognac,France | Cognac,France | Trading | EUR2,900,000 | - | 100 | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| DicotPartners,S.L(“Dicot”) | 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 | 97.5 | - | 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")(d) | 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 |
| LangfangDevelopmentZoneCastel-ChangyuWineCo.,Ltd("LangfangCastel") | Langfang,Hebei,China | Langfang,Hebei,China | Manufacturing | USD6,108,818 | 39 | 10 | Acquiredthroughestablishmentorinvestment |
| Changyu(Jingyang)WineSalesCo.,Ltd.("JingyangSales") | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Marketingandsales | RMB1,000,000 | 10 | 90 | Acquiredthroughestablishmentorinvestment |
| LangfangChangyuPioneerWineSalesCo.,Ltd("LangfangSales") | Langfang,Hebei,China | Langfang,Hebei,China | Marketingandsales | RMB1,000,000 | 10 | 90 | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| ShanghaiChangyuSalesandDistributionCo.,Ltd.("ShanghaiSales") | Shanghai,China | Shanghai,China | Marketingandsales | RMB1,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| BeijingChangyuAFIPAgriculturedevelopmentCo.,Ltd("AgricultureDevelopment") | Miyun,Beijing,China | Miyun,Beijing,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingChateauChangyuAFIPGlobalCo.,Ltd.(“AFIP”)(e) | Beijing,China | Beijing,China | Manufacturing | RMB642,750,000 | 91.53 | - | 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 |
| HuanrenChangyuNationalWinesSalesCo.,Ltd.("NationalWines") | Benxi,Liaoning,China | Benxi,Liaoning,China | Marketingandsales | RMB2,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| LiaoningChangyuGoldenIcewineValleyCo.,Ltd.("GoldenIcewineValley")(e) | Benxi,Liaoning,China | Benxi,Liaoning,China | Manufacturing | RMB59,687,300 | 51 | - | Acquiredthroughestablishmentorinvestment |
| YantaiDevelopmentZoneChangyuTradingCo.,Ltd("DevelopmentZoneTrading") | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuFushanTradingCompany("FushanTrading") | 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 |
| QingTongXiaChangyuWineMarketingLtd.("QingTongXiaSales")(a) | Ningxia,China | Ningxia,China | Marketingandsales | RMB500,000 | - | 100 | 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 |
| ShaanxiChateauChangyuRenaCo.,Ltd.(“ChateauChangan”) | Xianyang,Shaanxi,China | Xianyang,Shaanxi,China | Manufacturing | RMB20,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| YantaiChangyuWineResearch&DevelopmentCentreCo.,Ltd.(“R&DCentre”)(g) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB805,000,000 | 82.24 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(HuanRen)WineCo.,Ltd("HuanRenWine") | Benxi,Liaoning,China | Benxi,Liaoning,China | Wineproductionprojecting | RMB5,000,000 | 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("ShaanxiSales") | 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 |
| TianjinChangyuPioneerSalesCo.,Ltd("TianjinPioneer") | Tianjin,China | Tianjin,China | Marketingandsales | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| BeijingChangyuPioneerSalesCo.,Ltd("BeijingPioneer")(a) | Beijing,China | Beijing,China | Marketingandsales | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiRoulletFransacWineSalesCo.,Ltd.(“YantaiRoulletFransac”) | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB1,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| GuangzhouChangyuPioneerSalesCo.,Ltd("GuangzhouPioneer")(a) | Guanghzou,Guangdong,China | Guanghzou,Guangdong,China | Marketingandsales | RMB11,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuWineSalesCo.,Ltd.("WineSalesCompany") | Yantai,Shandong,China | Yantai,Shandong,China | Marketingandsales | RMB5,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| 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 |
| CultureDevelopment(b) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| Museum(b) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB500,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiChangyuCultureTourismProductionSalesCo.,Ltd.("CultureSales")(b) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB5,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
NameoftheSubsidiary
| NameoftheSubsidiary | Principalplaceofbusiness | Registeredplace | Businessnature | Registeredcapital | Shareholdingratio(%) | Acquisitionmethod | |
| (orsimilarequityinterest) | |||||||
| YantaiChangyuInternationalWindowoftheWineCityCo.,Ltd.("WindowoftheWineCity”)(b) | Yantai,Shandong,China | Yantai,Shandong,China | Tourism | RMB60,000,000 | - | 100 | Acquiredthroughestablishmentorinvestment |
| YantaiKOYABrandyChateauCo.,Ltd(“ChateauKOYA”)(c) | Yantai,Shandong,China | Yantai,Shandong,China | Manufacturing | RMB10,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
| Changyu(Shanghai)InternationalDigitalMarketingCenterLimited(“DigitalMarketing”)(c) | Shanghai,China | Shanghai,China | Marketingandsales | RMB50,000,000 | 100 | - | Acquiredthroughestablishmentorinvestment |
(a)Companiesabovewerederegisteredin2020.(b)On1July2020,ChangyuGroupandtheCompanysignedtheEquityTransferAgreementofCultureDevelopmentpursuanttowhichChangyuGroupshalltransferits100%equityinCultureDevelopmentataconsiderationofRMB89,519,789totheCompany.TheCompanyadjustedthedifferencebetweenthebookvalueofCultureDevelopment’snetassetsandtheequitytransferpriceontheacquisitiondatetotheCompany’scapitalreserveofRMB2,959,781.Musuem,CultureSalesandWindowoftheWineCityareallwholly-ownedsubsidiariesofCultureDevelopment.(c)Thecompaniesabovearenewlyestablishedcompaniesin2020.
Reasonsfortheinconsistencybetweentheproportionofshareholdingsinasubsidiaryandtheproportionofvotingrights:
(d)ChateauChangyuisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,accountingfor70%ofChangyu
Chateau'sequityinterest.Throughagreementarrangement,theCompanyhasthefullpowertocontrolChangyuChateau'sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon31December2022.(e)AFIPisalimitedliabilitycompanyestablishedbyYantaiDeanandBeijingQinglang.InJune2019,YantaiDeantransferred1.31%ofits
equitytoYantaiChangyu.Aftertheequitychange,theCompanyholds91.53%ofitsequity.Throughagreementarrangement,theCompanyhasthefullpowertocontrolAFIP'sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon2September2024.(f)GoldenIcewineValleyisaSino-foreignjointventureestablishedbytheCompanyandaforeigninvestor,accountingfor51%ofGolden
IcewineValley'sequityinterest.Throughagreementarrangement,theCompanyhasthefullpowertocontrolGoldenIcewineValley'sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon31December2021.(g)R&DCentreisajointventureestablishedbytheCompanyandCADF,accountingfor82.24%ofR&DCentre'sequityinterest.Through
agreementarrangementinNoteV.28,theCompanyhasthefullpowertocontrolR&DCentre'sstrategicoperating,investingandfinancingpolicies.Theagreementarrangementwillbeterminatedon28February2025.Asat31December2020,remaininginvestmentofCADFaccountsfor17.76%oftheregisteredcapital.
(2)Materialnon-whollyownedsubsidiaries
NameoftheSubsidiary
| NameoftheSubsidiary | Proportionofownershipinterestheldbynon-controllinginterests | Comprehensiveincomeattributabletonon-controllinginterestsfortheyear | Dividenddeclaredtonon-controllingshareholdersduringtheyear | Balanceofnon-controllinginterestsattheendoftheyear |
| XinjiangTianzhu | 40% | 1,466,038 | - | (46,118,100) |
| AFIP | 8.47% | - | - | (56,409,393) |
| GoldenIcewineValley | 49% | - | - | (33,319,062) |
| IWCC | 15% | (2,763,125) | 684,907 | (56,009,346) |
(3)Keyfinancialinformationaboutmaterialnon-whollyownedsubsidiaries
Thefollowingtablesetsoutthekeyfinancialinformationoftheabovesubsidiarieswithoutoffsettinginternaltransactions,butwithadjustmentsmadeforthefairvalueadjustmentattheacquisitiondateandanydifferencesinaccountingpolicies:
XinjiangTianzhu
| XinjiangTianzhu | AFIP | GoldenIcewineValley | ChileIndomitaWineGroup | |||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Currentassets | 24,223,370 | 24,829,435 | 248,357,550 | 251,829,164 | 27,638,263 | 38,234,720 | 231,503,343 | 223,722,688 |
| Non-currentassets | 45,465,308 | 61,886,751 | 434,045,076 | 452,444,880 | 24,246,983 | 23,291,375 | 291,345,642 | 291,630,115 |
| Totalassets | 69,688,678 | 86,716,186 | 682,402,626 | 704,274,044 | 51,885,246 | 61,526,095 | 522,848,985 | 515,352,803 |
| Currentliabilities | (17,583) | 36,185 | 41,910,462 | 45,607,611 | 9,967,686 | 12,077,206 | 132,100,755 | 142,365,749 |
| Non-currentliabilities | 5,336,115 | 5,336,114 | - | 201,500 | - | 100,000 | 9,794,949 | 5,152,974 |
| Totalliabilities | 5,318,532 | 5,372,299 | 41,910,462 | 45,809,111 | 9,967,686 | 12,177,206 | 141,895,704 | 147,518,723 |
| Operatingincome | - | - | 168,184,273 | 266,347,444 | 20,488,946 | 32,223,734 | 225,121,450 | 253,543,171 |
| Net(loss)/profit | (3,665,095) | (7,571,274) | 2,092,230 | 30,398,744 | (7,431,328) | (5,764,649) | 18,196,663 | 16,279,461 |
| Totalcomprehensiveincome | (3,665,095) | (7,571,274) | 2,092,230 | 30,398,744 | (7,431,328) | (5,764,649) | 18,420,833 | 10,322,810 |
| Cashflowsfromoperatingactivities | (105,873) | 20,457 | 3,821,964 | 27,503,336 | 4,654,744 | 1,655,465 | 37,132,027 | 5,073,408 |
2Transactionsthatcausechangesininterestsinsubsidiariesthatdonotresultinlossofcontrol
(1)Changesininterestsinsubsidiaries:
Year
| Year | NameoftheSubsidiary | Proportionofownershipinterestheldbynon-controllinginterestsacquired | Acquisitiondate |
| 2020 | Museum | 10.00% | 27March2020 |
| 2020 | Dicot | 15.00% | 31August2020 |
| 2020 | AustraliaKilikanoonEstate | 15.00% | 26November2020 |
(2)Impactfromtransactionswithnon-controllinginterestsandequityattributabletothe
shareholdersoftheCompany:
| Museum | Dicot | AustraliaKilikanoonEstate | |
| Purchasecost | |||
| -Cash | 1,033,911 | 42,991,725 | 18,941,111 |
| Total | 1,033,911 | 42,991,725 | 18,941,111 |
| Less:shareofnetassetsinsubsidiariesbasedonthesharesacquired | 655,653 | 21,241,590 | 12,782,693 |
| Difference | |||
| Including:Adjustmentoncapitalreserve | 378,258 | 21,750,135 | 6,158,418 |
VIII.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.Asat31December2020,theGroup'smaximumexposuretocreditriskwhichwillcauseafinanciallosstotheGroupduetofailuretodischargeanobligationbythecounterparties.Inordertominimisethecreditrisk,theGrouphasadoptedapolicytoensurethatallsalescustomershavegoodcreditrecords.AccordingtothepolicyoftheGroup,creditreviewisrequiredforclientswhorequirecredittransactions.Inaddition,theGroupcontinuouslymonitorsthebalanceofaccountreceivabletoensurethere’snoexposuretosignificantbaddebtrisks.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecificapprovaloftheDepartmentofCreditControlintheGroup.Inaddition,theGroupreviewstherecoverableamountofeachindividualtradedebtateachbalancesheetdatetoensurethatadequateimpairmentlossesaremadeforirrecoverableamounts.Inthisregard,themanagementoftheGroupconsidersthattheGroup'screditriskissignificantlyreduced.SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Concentrationsofcreditriskaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.Asat31December2020,20.3%oftheGrouptradereceivablesareduefromtopfivecustomers(31December2019:20.5%).ThereisnocollateralorothercreditenhancementonthebalanceofthetradereceivablesoftheGroup.2Liquidityrisk
Liquidityriskistheriskthatanenterprisewillencounterdifficultyinmeetingobligationsthataresettledbydeliveringcashoranotherfinancialasset.TheCompanyanditsindividualsubsidiariesareresponsiblefortheirowncashmanagement,includingshort-terminvestmentofcashsurplusesandtheraisingofloanstocoverexpectedcashdemands(subjecttoapprovalbytheCompany’sboardwhentheborrowingsexceedcertainpredeterminedlevels).TheGroup’spolicyistoregularlymonitoritsliquidityrequirementsanditscompliancewithlendingcovenants,toensurethatitmaintainssufficientreservesofcash,readilyrealisablemarketablesecuritiesandadequatecommittedlinesoffundingfrommajorfinancialinstitutionstomeetitsliquidityrequirementsintheshortandlongerterm.
ThefollowingtablessetouttheremainingcontractualmaturitiesatthebalancesheetdateoftheGroup’sfinancialliabilities,whicharebasedoncontractualundiscountedcashflows(includinginterestpaymentscomputedusingcontractualratesor,iffloating,basedonratescurrentatthebalancesheetdate)andtheearliestdatetheGroupcanberequiredtopay:
Item
| Item | 2020Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 698,571,997 | - | - | - | 698,571,997 | 689,090,715 |
| Accountspayable | 484,347,958 | - | - | - | 484,347,958 | 484,347,958 |
| Otherpayables | 386,105,526 | - | - | - | 386,105,526 | 386,105,526 |
| Long-termloans(includingtheportionduewithinoneyear) | 33,175,345 | 24,182,478 | 149,719,792 | 135,013,150 | 342,090,765 | 311,664,858 |
| Long-termpayables(includingtheportionduewithinoneyear) | 23,074,674 | 22,810,674 | 64,868,800 | - | 110,754,148 | 108,000,000 |
| Total | 1,625,275,500 | 46,993,152 | 214,588,592 | 135,013,150 | 2,021,870,394 | 1,979,209,057 |
| Item | 2019Contractualundiscountedcashflow | Carryingamountatbalancesheetdate | ||||
| Within1yearorondemand | 1to2years | Morethan2yearsbutlessthan5years | Morethan5years | Total | ||
| Short-termloans | 768,403,432 | - | - | - | 768,403,432 | 754,313,744 |
| Accountspayable | 570,849,779 | - | - | - | 570,849,779 | 570,849,779 |
| Otherpayables | 456,480,389 | - | - | - | 456,480,389 | 456,480,389 |
| Long-termloans(includingtheportionduewithinoneyear) | 121,077,261 | 51,214,719 | 77,814,096 | 5,577,899 | 255,683,975 | 245,718,722 |
| Long-termpayables(includingtheportionduewithinoneyear) | 36,462,109 | 36,054,170 | 106,374,904 | 55,473,753 | 234,364,936 | 225,000,000 |
| Total | 1,953,272,970 | 87,268,889 | 184,189,000 | 61,051,652 | 2,285,782,511 | 2,252,362,634 |
3Interestraterisk
Interest-bearingfinancialinstrumentsatvariableratesandatfixedratesexposetheGrouptocashflowinterestrateriskandfairvalueinterestrisk,respectively.TheGroupdeterminestheappropriateweightingsofthefixedandfloatingrateinterest-bearinginstrumentsbasedonthecurrentmarketconditionsandperformsregularreviewsandmonitoringtoachieveanappropriatemixoffixedandfloatingrateexposure.
(1)Asat31December,theGroupheldthefollowinginterest-bearingfinancialinstruments:
Fixedrateinstruments:
| Item | 2020 | 2019 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 1.5%-2.75% | 93,553,062 | 1.1%-2.75% | 154,364,265 |
| Financialliabilities | ||||
| -Short-termloans | 0.35%-3.28% | (139,090,715) | 0.35%-4.9% | (204,313,744) |
| -Long-termloans(includingtheportionduewithinoneyear) | 1%-3.28% | (280,414,858) | 1%-2.5% | (189,468,722) |
| -Long-termpayables(includingtheportionduewithinoneyear) | 1.20% | (108,000,000) | 1.20% | (225,000,000) |
| Total | (433,952,511) | (464,418,201) | ||
Variablerateinstruments:
Item
| Item | 2020 | 2019 | ||
| Effectiveinterestrate | Amounts | Effectiveinterestrate | Amounts | |
| Financialassets | ||||
| -Cashatbank | 0.3%-1.0% | 1,100,642,230 | 0.3%-1.75% | 1,442,981,317 |
| Financialliabilities | ||||
| -Short-termloans | 1yearLPR0.005 | (550,000,000) | LPR | (550,000,000) |
| -Long-termloans(includingtheportionduewithinoneyear) | 90%of5yearLPR | (31,250,000) | 90%of5yearLPR | (56,250,000) |
| Total | 519,392,230 | 836,731,317 | ||
(2)Sensitivityanalysis
ManagementoftheGroupbelievesinterestrateriskonbankdepositisnotsignificant,thereforedoesnotdisclosesensitivityanalysisforinterestraterisk.Asat31December2020,basedonassumptionsabove,itisestimatedthatageneralincreaseof50basispointsininterestrates,withallothervariablesheldconstant,woulddecreasetheGroup’sequitybyRMB2,179,688(2019:RMB2,273,438),andnetprofitbyRMB2,179,688(2019:RMB2,273,438).Thesensitivityanalysisaboveindicatestheinstantaneouschangeinthenetprofitandequitythatwouldariseassumingthatthechangeininterestrateshadoccurredatthebalancesheetdateandhadbeenappliedtore-measurethosefinancialinstrumentsheldbytheGroupwhichexposetheGrouptofairvalueinterestrateriskatthebalancesheetdate.Inrespectoftheexposuretocashflowinterestrateriskarisingfromfloatingratenon-derivativeinstrumentsheldbytheGroupatthebalancesheetdate,theimpactonthenetprofitandequityisestimatedasanannualisedimpactoninterestexpenseorincomeofsuchachangeininterestrates.4Foreigncurrencyrisk
Inrespectofcashatbankandonhand,accountsreceivableandpayable,short-termloansdenominatedinforeigncurrenciesotherthanthefunctionalcurrency,theGroupensuresthatitsnetexposureiskepttoanacceptablelevelbybuyingorsellingforeigncurrenciesatspotrateswhennecessarytoaddressshort-termimbalances.
(1)Asat31December,theGroup’sexposuretomaincurrencyriskarisingfromrecognised
assetsorliabilitiesdenominatedinforeigncurrenciesispresentedinthefollowingtables.Forpresentationpurposes,theamountsoftheexposureareshowninRenminbi,translatedusingthespotrateatthebalancesheetdate.Differencesresultingfromthetranslationofthefinancialstatementsdenominatedinforeigncurrencyareexcluded.
| 2020 | 2019 | |||
| Balanceatforeigncurrency | BalanceatRMBequivalent | Balanceatforeigncurrency | BalanceatRMBequivalent | |
| Cashatbankandonhand | 2,029,849 | 14,053,435 | 6,662,301 | 46,592,213 |
| -USD | 1,492,923 | 9,744,604 | 6,525,673 | 45,524,399 |
| -EUR | 536,926 | 4,308,831 | 136,628 | 1,067,814 |
| Short-termloans | 12,490,000 | 81,524,728 | 12,490,000 | 87,132,738 |
| -USD | 12,490,000 | 81,524,728 | 12,490,000 | 87,132,738 |
(2)ThefollowingaretheexchangeratesforRenminbiagainstforeigncurrenciesappliedbythe
Group:
Averagerate
| Averagerate | Balancesheetdatemid-spotrate | |||
| 2020 | 2019 | 2020 | 2019 | |
| USD | 6.8884 | 6.8948 | 6.5272 | 6.9762 |
| EUR | 7.9065 | 7.7161 | 8.0250 | 7.8155 |
(3)Sensitivityanalysis
Assumingallotherriskvariablesremainedconstant,a5%strengtheningoftheRenminbiagainsttheUSdollarandEurodollarat31DecemberwouldhaveimpactontheGroup’sequityandnetprofitbytheamountshownbelow.whoseeffectisinRenminbiandtranslatedusingthespotrateattheyear-enddate:
| Equity | Netprofit | |
| 31December2020 | ||
| USD | 3,589,006 | 3,589,006 |
| EUR | (215,442) | (215,442) |
| Total | 3,373,564 | 3,373,564 |
| 31December2019 | ||
| USD | 2,080,417 | 2,080,417 |
| EUR | (53,391) | (53,391) |
| Total | 2,027,026 | 2,027,026 |
A5%weakeningoftheRenminbiagainsttheUSdollarandEurodollarat31Decemberwouldhavehadtheequalbutoppositeeffecttotheamountsshownabove,onthebasisthatallothervariablesremainedconstant.IX.Fairvaluedisclosure
AllfinancialassetsandfinancialliabilitiesheldbytheGrouparecarriedatamountsnotmateriallydifferentfromtheirfairvalueat31December2020and31December2019.
X.Relatedpartiesandrelatedpartytransactions1InformationabouttheparentoftheCompany
Companyname
| Companyname | Registeredplace | Businessnature | Registeredcapital | Shareholdingpercentage(%) | Percentageofvotingrights(%) | UltimatecontrollingpartyoftheCompany |
| ChangyuGroup | Yantai | Manufacturing | 50,000,000 | 50.4% | 50.4% | JointlycontrolledbyYantaiGuoFengInvestmentHoldingLtd,ILLVASARONNOHOLDINGSPA,InternationalFinanceCorporationandYantaiYuhuaInvestmentandDevelopmentCompanyLimited. |
Therearenochangesontheregisteredcapitalandshareholdingpercentage/percentageofvotingrightsoftheparentcompany.
2InformationaboutthesubsidiariesoftheCompany
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVII.1.3InformationaboutjointventuresandassociatesoftheCompany
JointventuresandassociatesthathaverelatedpartytransactionswiththeGroupduringthis
yearorthepreviousyearareasfollows:
Nameofentity
| Nameofentity | RelationshipwiththeCompany |
| WEMISSShanghai | AssociateoftheGroup |
| L&MHoldings | JointventureoftheGroup |
4Informationonotherrelatedparties
| Nameofotherrelatedparties | Relatedpartyrelationship |
| YantaiShenmaPackagingCo.,Ltd.(“ShenmaPackaging”) | Controlledbythesameparentcompany |
| YantaiZhongyaPharmaceuticalTonicWineCo.,Ltd.("ZhongyaPharmaceutical") | Controlledbythesameparentcompany |
| Mirefleurs | Subsidiariesofthejointventure |
| CHATEAUDELIVERSAN(“LIVERSAN”) | Subsidiariesofthejointventure |
5Transactionswithrelatedparties
(1)Productprocurement
| Relatedparties | Natureoftransaction | 2020 | 2019 |
| ShenmaPackaging | Productprocurement | 78,520,694 | 134,044,857 |
| ZhongyaPharmaceutical | Productprocurement | 850,478 | 1,244,991 |
| Mirefleurs | Productprocurement | 9,261,722 | 6,429,542 |
| LIVERSAN | Productprocurement | 3,746,069 | 1,632,941 |
| Total | 92,378,963 | 143,352,331 |
(2)Salesofgoods
| Relatedparties | Natureoftransaction | 2020 | 2019 |
| ZhongyaPharmaceutical | Salesofgoods | 3,920,047 | 4,474,004 |
| WEMISSShanghai | Salesofgoods | 1,374,616 | - |
| ShenmaPackaging | Salesofgoods | 293,488 | 347,453 |
| Total | 5,588,151 | 4,821,457 |
(3)Services
| Relatedparties | Natureoftransaction | 2020 | 2019 |
| ShenmaPackaging | Services | 106,195 | - |
| Total | 106,195 | - |
(4)Purchaseoffixedassets
RelatedpartiesoftheCompany
| RelatedpartiesoftheCompany | Natureoftransaction | 2020 | 2019 |
| ChangyuGroup | Purchaseoffixedassets | - | 1,897,126 |
| Total | - | 1,897,126 |
(5)Saleoffixedassets
| RelatedpartiesoftheCompany | Natureoftransaction | 2020 | 2019 |
| ChangyuGroup | Saleoffixedassets | 44,845,989 | - |
| Total | 44,845,989 | - |
(6)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2020 | Leaseincomerecognisedin2019 |
| ShenmaPackaging | Officesandplants | 1,492,550 | 1,492,550 |
| ZhongyaPharmaceutical | Officesandplants | 522,936 | 522,936 |
| Total | 2,015,486 | 2,015,486 |
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2020 | Leaseexpenserecognisedin2019 |
| ChangyuGroup | Officebuildings | 1,612,118 | 1,612,118 |
| ChangyuGroup | Officesandplants | 1,394,762 | 1,394,762 |
| ChangyuGroup | Officesandplants | 4,184,286 | 4,184,286 |
| ChangyuGroup | Officesandcommercialbuilding | 1,050,000 | - |
| ChangyuGroup | Officebuildings | 714,286 | - |
| Total | 8,955,452 | 7,191,166 |
(7)Remunerationofkeymanagementpersonnel
| Item | 2020 | 2019 |
| Remunerationofkeymanagementpersonnel | 6,975,110 | 12,297,689 |
(8)Otherrelatedpartytransactions
| Relatedparties | Natureoftransaction | Note | 2020 | 2019 |
| ChangyuGroup | Royalty | (a) | 21,985,068 | 35,938,014 |
| ChangyuGroup | Royaltydeductedinthepreviousyears | (a) | - | (218,649,636) |
| ChangyuGroup | Transferoftrademarkuserights | (b) | 18,334,528 | - |
| ChangyuGroup | TransferofCultureDevelopment | VI | 89,519,789 | - |
| ZhongyaPharmaceutical | EquitytransferofChangyuMuseum | VII | 1,033,912 | - |
(a)Contractoftrademarksusage
Pursuanttoaroyaltyagreementdated18May1997,startingfrom18September1997,theCompanymayusecertaintrademarksofChangyuGroupCompany,whichhavebeenregisteredwiththePRCTrademarkOffice.Anannualroyaltyfeeat2%oftheGroup'sannualsalesispayabletoChangyuGroup.Thelicenseiseffectiveuntiltheexpiryoftheregistrationofthetrademarks.Accordingtotheaboveroyaltyagreement,ChangyuGroupcollectedatotalofRMB576,507,809forroyaltyfrom2013to2019,ofwhich51%wasusedtopromotetrademarkssuchasChangyuandtheproductofthiscontract,totallingRMB294,018,093.TheamountisusedforpromotionofChangyuandothertrademarksandtheproductsofthiscontract,totallingRMB62,250,368,thedifferenceisRMB231,768,615(taxinclusive).On18May2019,thegeneralmeetingofshareholdersapprovedtheproposaloftheamendmenttotheroyaltyagreement.Article6.1oftheroyaltyagreementwithChangyuGroupwasamendedto:Duringthevalidityperiodofthiscontract,theGrouppaysChangyuGrouproyaltyonanannualbasis.Theroyaltyiscalculatedbasedon
0.98%ofthesalesvolumeoftheGroup’scontractproductsusingthistrademark.Thearticleisamendedto:TheroyaltypaidtotheChangyuGroupbytheGroupshallnotbeusedtopromotethistrademarkandthecontractproducts.Inaddition,inaccordancewithagreementtheGroupsignedwithChangyuGroupinNovember2019,ChangyuGrouppromisedtooffsetthedifferenceofRMB231,768,615abovewiththeroyaltyforfouryears,i.e.from2019to2022.Ifitisnotsufficientfordeduction,therestwillberepaidinaone-offmannerin2023.Ifthereissurplus,thesurpluspartoftheroyaltywillbechargedfromtheyearwhenthesurplusoccurs.TheGroupincurredatrademarkusagefeeofRMB21,985,068thisyear.(b)Transferoftrademarkuserights
On22April2020,theFourthMeetingoftheEighthBoardofDirectorsoftheGroupreviewedandapprovedtheProposalonTransferringthe"KOYA"andOtherTrademarksofYantaiChangyuGroupCo.,Ltd..On16June2020,theGroupandChangyuGroupsignedtheTrademarkTransferAgreementtotransfertheownershipof43trademarksownedbyChangyuGroup,includingKOYA,ZENITHWIRL,FRANLLET,WEMISSandPIONEERatanestimatedpriceofRMB19,434,600(taxinclusive).
6Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
Item
| Item | Relatedparty | 2020 | 2019 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivable | ZhongyaPharmaceutical | 714,995 | 3,175 | 4,292,387 | 909,935 |
| Accountsreceivable | WEMISSShanghai | 1,553,316 | 6,898 | - | - |
| Prepayments | ShenmaPackaging | 126,818 | - | - | - |
| Othernon-currentassets | ChangyuGroup | 170,370,147 | - | 193,674,320 | - |
| Otherreceivables | ZhongyaPharmaceutical | 522,936 | - | - | - |
| Otherreceivables | ShenmaPackaging | - | - | 813,440 | - |
Payablestorelatedparties
| Item | Relatedparty | 2020 | 2019 |
| Accountspayable | ShenmaPackaging | 33,421,165 | 40,072,151 |
| Accountspayable | ZhongyaPharmaceutical | 455,176 | 1,024,310 |
| Accountspayable | ChangyuGroup | 19,434,600 | 2,143,752 |
| Otherpayables | ShenmaPackaging | 450,000 | 450,000 |
XI.Capitalmanagement
TheGroup’sprimaryobjectiveswhenmanagingcapitalaretosafeguarditsabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsforshareholders,bypricingproductsandservicescommensuratelywiththelevelofriskandbysecuringaccesstofinanceatareasonablecost.TheGroup’scapitalstructureisregularlyreviewedandmanagedtoachieveanoptimalstructureandreturnforshareholders.FactorsfortheGroup’sconsiderationinclude:itsfuturefundingrequirements,capitalefficiency,actualandexpectedprofitability,expectedcashflows,andexpectedcapitalexpenditure.AdjustmentsaremadetothecapitalstructureinlightofchangesineconomicconditionsaffectingtheGroup.NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.XII.Commitmentsandcontingencies1Significantcommitment
(1)Capitalcommitments
| Item | 2020 | 2019 |
| Long-termassetsacquisitioncommitment | 249,379,500 | 679,980,000 |
| Total | 249,379,500 | 679,980,000 |
(2)Operatingleasecommitments
Asat31December,thetotalfutureminimumleasepaymentsundernon-cancellableoperatingleasesoftheGroup’spropertieswerepayableasfollows:
Item
| Item | 2020 | 2019 |
| Within1year(inclusive) | 24,076,000 | 17,756,000 |
| Over1yearbutwithin2years(inclusive) | 17,735,000 | 16,189,000 |
| Over2yearsbutwithin3years(inclusive) | 15,564,000 | 9,757,000 |
| Over3years | 106,278,000 | 89,550,940 |
| Total | 163,653,000 | 133,252,940 |
2Contingencies
TheGroupdonothaveanysignificantcontingenciesasatbalancesheetdate.XIII.Subsequentevents
Distributionofdividendsonordinarysharesapprovedafterthebalancesheetdate
AccordingtotheproposaloftheBoardofDirectorson26April2021,theCompanyintendsto
distributecashdividendtotalingRMB274,185,600toallshareholdersof685,464,000capital
sharesfortheyearended31December2020onthebasisofRMB4.0(includingtax)for
every10shares.TheproposalissubjecttotheapprovalbytheShareholders’meeting.
Thisdistributionofprofitincashhasnotbeenrecognisedasaliabilityatthebalancesheet
date.XIV.Othersignificantitems1Segmentreporting
TheGroupisprincipallyengagedintheproductionandsalesofwine,brandy,andsparkling
wineinChina,France,Spain,ChileandAustralia.InaccordancewiththeGroup'sinternal
organisationstructure,managementrequirementsandinternalreportingsystem,theGroup's
operationisdividedintofiveparts:China,Spain,France,ChileandAustralia.The
managementperiodicallyevaluatessegmentresults,inordertoallocateresourcesand
evaluateperformances.In2020,over85%ofrevenue,morethan93%ofprofitandover
92%ofnon-currentassetsderivedfromChina/arelocatedinChina.Therefore,theGroup
doesnotneedtodiscloseadditionalsegmentreportinformation.XV.NotestotheCompany’sfinancialstatements1Receivablesunderfinancing
| Item | Note | 2020 | 2019 |
| Billsreceivable | (1) | 13,920,000 | 41,679,635 |
| Total | 13,920,000 | 41,679,635 |
(1)ThepledgedbillsreceivableoftheCompanyattheendoftheyear
Asat31December2020,therewasnopledgedbillsreceivable(31December2019:Nil).
(2)Outstandingendorsedbillsthathavenotmaturedattheendoftheyear
Item
| Item | Amountderecognisedatyearend |
| Bankacceptancebills | 49,849,895 |
| Total | 49,849,895 |
Asat31December2020,billsendorsedbytheCompanytootherpartieswhicharenotyetdueattheendoftheperiodisRMB49,849,895(31December2019:RMB65,303,181).Thenotesareusedforpaymenttosuppliers.TheCompanybelievesthatduetogoodreputationofbank,theriskofnotesnotacceptingbybankonmaturityisverylow,thereforederecognisethenotereceivablesendorsed.Ifthebankisunabletopaythenotesonmaturity,accordingtotherelevantlawsandregulationsofChina,theCompanywouldundertakelimitedliabilityforthenotes.2Otherreceivables
| Note | 31December2020 | 31December2019 | |
| Interestreceivable | (1) | - | 90,355 |
| Dividendsreceivable | (2) | 200,000,000 | 200,000,000 |
| Others | (3) | 380,131,798 | 386,334,603 |
| Total | 580,131,798 | 586,424,958 |
(1)Interestreceivable
(a)Interestreceivablebycategory:
| Item | 31December2020 | 31December2019 |
| Interestreceivableonbankdeposits | - | 90,355 |
| Total | - | 90,355 |
(b)Significantoverdueinterest:N/A
(2)Dividendsreceivable
| Item | 31December2020 | 31December2019 |
| Dividendstosubsidiaries | 200,000,000 | 200,000,000 |
| Total | 200,000,000 | 200,000,000 |
(3)Others
(a)Othersbycustomertype:
Customertype
| Customertype | 31December2020 | 31December2019 |
| Amountsduefromsubsidiaries | 379,375,427 | 385,328,319 |
| Amountsduefromrelatedparties | 522,936 | 813,440 |
| Others | 233,435 | 192,844 |
| Sub-total | 380,131,798 | 386,334,603 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 380,131,798 | 386,334,603 |
(b)Theageinganalysisisasfollows:
| Ageing | 2020 | 2019 |
| Within1year(inclusive) | 378,307,160 | 386,314,603 |
| Over1yearbutwithin2years(inclusive) | 1,804,638 | - |
| Over2yearsbutwithin3years(inclusive) | - | 20,000 |
| Over3years | 20,000 | - |
| Sub-total | 380,131,798 | 386,334,603 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 380,131,798 | 386,334,603 |
Theageingiscountedstartingfromthedatewhenotherreceivablesarerecognised.(c)Othersbymethodofprovisioning
| 2020 | 2019 | |||||||||
| Category | Bookvalue | Provisionforbadanddoubtfuldebts | Carryingamount | Bookvalue | Provisionforbadanddoubtfuldebts | Carryingamount | ||||
| Amount | Percentage(%) | Amount | Percentage(%) | Amount | Percentage(%) | Amount | Percentage(%) | |||
| Individualassessment | ||||||||||
| -Totalotherreceivables | - | - | - | - | - | - | - | - | - | - |
| Collectiveassessment | ||||||||||
| -Amountsduefromsubsidiaries | 379,375,427 | 99.8 | - | - | 379,375,427 | 385,328,319 | 99.7 | - | - | 385,328,319 |
| -Amountsduefromrelatedparties | 522,936 | 0.1 | - | - | 522,936 | 813,440 | 0.2 | - | - | 813,440 |
| -Amountsduefromthirdparties | 233,435 | 0.1 | - | - | 233,435 | 192,844 | 0.1 | - | - | 192,844 |
| Total | 380,131,798 | 100.0 | - | - | 380,131,798 | 386,334,603 | 100.0 | - | - | 386,334,603 |
(d)Movementsofprovisionsforbadanddoubtfuldebts
Asat31December2020,nobadanddoubtfuldebtprovisionwasmadeforother
receivables(31December2019:Nil).
Asat31December2020,theCompanyhasnootherreceivableswrittenoff(31
December2019:Nil).
(e)Otherscategorisedbynature
Natureofotherreceivables
| Natureofotherreceivables | 2020 | 2019 |
| Amountsduefromsubsidiaries | 379,375,427 | 385,328,319 |
| Amountsduefromrelatedparties | 522,936 | 813,440 |
| Others | 233,435 | 192,844 |
| Sub-total | 380,131,798 | 386,334,603 |
| Less:Provisionforbadanddoubtfuldebts | - | - |
| Total | 380,131,798 | 386,334,603 |
(f)Fivelargestothers-bydebtorattheendoftheyear
| Debtor | Natureofthereceivable | Balanceattheendoftheyear | Ageing | Percentageofendingbalanceofothers(%) | Endingbalanceofprovisionforbadanddoubtfuldebts |
| SalesCompany | Amountsduefromsubsidiaries | 68,221,331 | Within1year | 17.9 | - |
| R&DCentre | Amountsduefromsubsidiaries | 58,134,999 | Within1year | 15.3 | - |
| LongkouSales | Amountsduefromsubsidiaries | 10,270,021 | Within1year | 2.7 | - |
| LaizhouSales | Amountsduefromsubsidiaries | 9,177,937 | Within1year | 2.4 | - |
| ChateauChangyu | Amountsduefromsubsidiaries | 6,136,795 | Within1year | 1.6 | - |
| Total | 151,941,083 | 39.9 |
3Long-termequityinvestments
(1)Long-termequityinvestmentsbycategory:
| Item | 2020 | 2019 | ||||
| Bookvalue | Provisionforimpairment | Carryingamount | Bookvalue | Provisionforimpairment | Carryingamount | |
| Investmentsinsubsidiaries | 7,593,535,027 | - | 7,593,535,027 | 7,432,422,621 | - | 7,432,422,621 |
| Investmentsinassociates | 6,243,853 | - | 6,243,853 | - | - | - |
| Total | 7,599,778,880 | - | 7,599,778,880 | 7,432,422,621 | - | 7,432,422,621 |
(2)Investmentsinsubsidiaries:
Subsidiary
| Subsidiary | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Balanceattheendoftheyear |
| XinjiangTianzhu | 60,000,000 | - | - | 60,000,000 |
| KylinPackaging | 23,176,063 | - | - | 23,176,063 |
| ChateauChangyu | 28,968,100 | - | - | 28,968,100 |
| PioneerInternational | 3,500,000 | - | - | 3,500,000 |
| NingxiaGrowing | 36,573,247 | - | - | 36,573,247 |
| NationalWines | 2,000,000 | - | - | 2,000,000 |
| GoldenIcewineValley | 30,440,500 | - | - | 30,440,500 |
| ChateauBeijing | 588,389,444 | - | - | 588,389,444 |
| SalesCompany | 7,200,000 | - | - | 7,200,000 |
| LangfangSales | 100,000 | - | - | 100,000 |
| LangfangCastel | 19,835,730 | - | - | 19,835,730 |
| WineSales | 4,500,000 | - | - | 4,500,000 |
| ShanghaiMarketing | 300,000 | 700,000 | - | 1,000,000 |
| BeijingSales | 850,000 | - | - | 850,000 |
| JingyangSales | 100,000 | - | - | 100,000 |
| JingyangWine | 900,000 | - | - | 900,000 |
| NingxiaWine | 222,309,388 | - | - | 222,309,388 |
| ChateauNingxia | 453,463,500 | - | - | 453,463,500 |
| ChateauTinlot | 212,039,586 | - | - | 212,039,586 |
| ChateauShihezi | 812,019,770 | - | - | 812,019,770 |
| ChateauChangan | 803,892,258 | - | - | 803,892,258 |
| R&DCentre | 3,288,906,445 | - | - | 3,288,906,445 |
| HuanrenWine | 22,200,000 | - | - | 22,200,000 |
| WineSalesCompany | - | 5,000,000 | - | 5,000,000 |
| FrancsChamps | 236,025,404 | - | - | 236,025,404 |
| Dicot | 190,150,544 | 42,991,725 | - | 233,142,269 |
| ChileIndomitaWineGroup | 274,248,114 | - | - | 274,248,114 |
| AustraliaKilikanoonEstate | 110,334,528 | 18,941,111 | - | 129,275,639 |
| DigitalMarketing | - | 1,000,000 | - | 1,000,000 |
| CultureDevelopment | - | 92,479,570 | - | 92,479,570 |
| Total | 7,432,422,621 | 161,112,406 | - | 7,593,535,027 |
ForinformationaboutthesubsidiariesoftheCompany,refertoNoteVII.
(3)Investmentsinassociates:
| Subsidiary | Balanceatthebeginningoftheyear | Additionsduringtheyear | Decreaseduringtheyear | Balanceattheendoftheyear |
| WEMISSShanghai | - | 3,000,000 | (256,110) | 2,743,890 |
| YantaiSantaiRealEstateDevelopmentCo.,Ltd | - | 3,500,000 | (37) | 3,499,963 |
| Total | - | 6,500,000 | (256,147) | 6,243,853 |
4Operatingincomeandoperatingcosts
Item
| Item | 2020 | 2019 | ||
| Income | Cost | Income | Cost | |
| Principalactivities | 510,205,498 | 450,876,445 | 738,011,458 | 653,860,504 |
| Otheroperatingactivities | 2,098,055 | 1,492,067 | 2,844,904 | 1,643,559 |
| Total | 512,303,553 | 452,368,512 | 740,856,362 | 655,504,063 |
(1)Detailsofoperatingincomeof2020
| Item | 2020 | |
| Income | Cost | |
| Principalactivities | 510,205,498 | 450,876,445 |
| Otheroperatingactivities | 2,098,055 | 1,492,067 |
| Total | 512,303,553 | 452,368,512 |
| Including:revenuefromcontractswithcustomers | 510,205,498 | 450,876,445 |
| Rentincome | 2,098,055 | 1,492,067 |
Disaggregationofrevenuefromcontractswithcustomers:
| Typeofcontract | 2020 |
| Bytypeofgoodsorservices | |
| -Liquor | 510,205,498 |
| Bytimingoftransferringgoodsorservices | |
| -Revenuerecognisedatapointintime | 510,205,498 |
(2)Detailsofoperatingincomeof2019
| 2019 | |
| Operatingincomefromprincipalactivities | |
| -Saleofgoods | 738,011,458 |
| Incomefromotherbusiness | |
| -Rentalincome | 2,844,904 |
| Total | 740,856,362 |
5Investmentincome
| Item | 2020 | 2019 |
| Incomefromlong-termequityinvestmentsaccountedforusingcostmethod | 449,760,868 | 621,620,723 |
| Lossfromlong-termequityinvestmentsaccountedforusingequitymethod | (256,147) | - |
| Total | 449,504,721 | 621,620,723 |
6Transactionswithrelatedparties
(1)Productprocurement
Relatedparties
| Relatedparties | Natureoftransaction | 2020 | 2019 |
| Subsidiaryoftheparentcompany | Productprocurement | 107,663,061 | 161,501,245 |
| OtherrelatedpartiesoftheCompany | Productprocurement | 36,249,251 | 59,925,186 |
| Total | 143,912,312 | 221,426,431 |
(2)Salesofgoods
| Relatedparties | Natureoftransaction | 2020 | 2019 |
| Subsidiaryoftheparentcompany | Salesofgoods | 504,080,073 | 738,594,682 |
| OtherrelatedpartiesoftheCompany | Salesofgoods | 2,952,493 | 2,261,680 |
| Total | 507,032,566 | 740,856,362 |
(3)Guarantee
TheCompanyastheguarantor
| Guaranteeholder | Currency | Amountofguarantee | Inceptiondateofguarantee | Maturitydateofguarantee | Guaranteeexpired(Y/N) |
| R&DCentre | RMB | 500,000,000 | 08March2017 | 08March2022 | N |
| AustraliaKilikanoonEstate | AUD | 17,000,000 | 13December2018 | 13December2023 | N |
(4)Leases
(a)Asthelessor
| Nameoflessee | Typeofassetsleased | Leaseincomerecognisedin2020 | Leaseincomerecognisedin2019 |
| OtherrelatedpartiesoftheCompany | Officesandplants | 2,015,486 | 2,015,486 |
| Subsidiaryoftheparentcompany | Officesbuildings | 82,569 | - |
| Total | 2,098,055 | 2,015,486 |
(b)Asthelessee
| Nameoflessor | Typeofassetsleased | Leaseexpenserecognisedin2020 | Leaseexpenserecognisedin2019 |
| OtherrelatedpartiesoftheCompany | Officebuildings | 1,394,762 | 1,394,762 |
| Total | Officebuildings | 1,394,762 | 1,394,762 |
(5)Otherrelatedpartytransactions
Relatedparties
| Relatedparties | Natureoftransaction | 2020 | 2019 |
| ChangyuGroup | Transferoftrademarkuserights | 18,334,528 | - |
| ChangyuGroup | TransferofCultureDevelopment | 89,519,789 | - |
7Receivablesfromandpayablestorelatedparties
Receivablesfromrelatedparties
| Item | Relatedparty | 2020 | 2019 | ||
| Bookvalue | Provisionforbadanddoubtfuldebts | Bookvalue | Provisionforbadanddoubtfuldebts | ||
| Accountsreceivable | OtherrelatedpartiesoftheCompany | - | - | 2,589,936 | 601,610 |
| Prepayments | OtherrelatedpartiesoftheCompany | 126,818 | - | - | - |
| Otherreceivables | Subsidiaryoftheparentcompany | 379,375,427 | - | 385,328,319 | - |
| Otherreceivables | OtherrelatedpartiesoftheCompany | 522,936 | - | 813,440 | - |
| Othernon-currentassets | Subsidiaryoftheparentcompany | 1,530,700,000 | - | 1,427,700,000 | - |
Payablestorelatedparties
| Item | Relatedparty | 2020 | 2019 |
| Accountspayable | OtherrelatedpartiesoftheCompany | 29,634,723 | 11,630,361 |
| Otherpayables | Subsidiaryoftheparentcompany | 319,936,973 | 381,487,360 |
| Otherpayables | OtherrelatedpartiesoftheCompany | 450,000 | 450,000 |
XVI.Non-recurringprofitandlossstatementin2020
| Item | Amount | |
| (1) | Profitandlossfromdisposalofnon-currentassets | (1,165,162) |
| (2) | Governmentgrantsrecognisedthroughprofitorloss(excludingthosehavingcloserelationshipswiththeGroup’soperationandenjoyedinfixedamountorquantityaccordingtouniformnationalstandard) | 73,180,848 |
| (3) | Profitorlossofsubsidiariesgeneratedbeforeacquisitiondateofabusinesscombinationinvolvingentitiesundercommoncontrol(Note2) | 12,715,544 |
| (4) | Othernon-operatingincomeandexpensesbesidesitemsabove | 10,098,551 |
| Sub-total | 94,829,781 | |
| (5) | Taxeffect | (21,595,671) |
| (6) | Effectonnon-controllinginterestsaftertaxation | (28,710) |
| Total | 73,205,400 | |
Note1:Extraordinarygainandlossitems(1)to(4)listedabovearepresentedinthe
amountbeforetaxation.Note2:Thenon-recurringgainsandlossesofthecombiningpartyfrom1January2020to
theacquisitiondatehavebeendeductedfromthecorrespondingnon-recurringgains
andlosses.
XVII.Returnonnetassetsandearningspershare1Calculationofearningspershare
(1)Basicearningspershare
Forcalculationofthebasicearningspershare,pleaserefertoNoteV.48.
(2)Basicearningspershareexcludingextraordinarygainandloss
BasicearningspershareexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaveragenumberofordinarysharesoutstanding:
2020
| 2020 | 2019 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 470,860,587 | 1,141,367,296 |
| ExtraordinarygainsandlossesattributabletoordinaryshareholdersoftheCompany | 73,205,400 | 248,870,652 |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 397,655,187 | 892,496,644 |
| Weightedaveragenumberofordinarysharesoutstanding | 685,464,000 | 685,464,000 |
| Basicearningspershareexcludingextraordinarygainandloss(RMB/share) | 0.58 | 1.30 |
(3)Dilutedearningspershare
Duringthereportingperiod,theCompanydidnothavedilutivepotentialordinaryshares.2Calculationofweightedaveragereturnonnetassets
(1)Weightedaveragereturnonnetassets
Weightedaveragereturnonnetassetsiscalculatedasdividingconsolidatednetprofit
attributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountof
consolidatednetassets:
| 2020 | 2019 | |
| ConsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 470,860,587 | 1,141,367,296 |
| Weightedaverageamountofconsolidatednetassets | 10,304,733,743 | 10,010,909,180 |
| Weightedaveragereturnonnetassets | 4.57% | 11.40% |
Calculationofweightedaverageamountofconsolidatednetassetsisasfollows:
2020
| 2020 | 2019 | |
| Consolidatednetassetsatthebeginningoftheyear | 10,402,248,821 | 9,688,765,904 |
| Businesscombinationinvolvingentitiesundercommoncontrol | (37,299,912) | - |
| EffectofconsolidatednetprofitattributabletoordinaryshareholdersoftheCompany | 237,836,150 | 567,083,168 |
| Theimpactofthepurchaseofminorityshareholders'equity | (8,046,940) | (69,159) |
| Effectofsharesrepurchased(NoteV.35) | (290,004,376) | (244,870,733) |
| Weightedaverageamountofconsolidatednetassets | 10,304,733,743 | 10,010,909,180 |
(2)Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss
WeightedaveragereturnonnetassetsexcludingextraordinarygainandlossiscalculatedasdividingconsolidatednetprofitexcludingextraordinarygainandlossattributabletoordinaryshareholdersoftheCompanybytheweightedaverageamountofconsolidatednetassets:
| 2020 | 2019 | |
| ConsolidatednetprofitexcludingextraordinarygainandlossattributabletotheCompany’sordinaryequityshareholders | 397,655,187 | 892,496,144 |
| Weightedaverageamountofconsolidatednetassets(Note) | 10,243,190,738 | 9,914,886,331 |
| Weightedaveragereturnonnetassetsexcludingextraordinarygainandloss | 3.88% | 9.00% |
Note:Whenabusinesscombinationundercommoncontroloccursduringthereporting
period,thenetassetsofthecombiningpartyshallbeweightedfromthemonthfollowingtheacquisitiondatewhencalculatingtheweightedaveragereturnonnetassetsafterdeductingnon-recurringgainsandlosses.Whencalculatingtheweightedaveragereturnonnetassetsafterdeductingnon-recurringgainsandlossesduringthecomparativeperiod,thenetassetsofthecombiningpartyshallnotbeweighted.
XIII.ReferenceDocuments
(1)TheoriginalofAnnualReportautographedbythechairman.
(2)TheFinancialStatementsautographedandsignedbythechairman,chiefaccountantandaccountantsincharge.
(3)TheProspectusandPublicOfferingAnnouncementforStockBin1997;TheProspectusandTheShares’Change&PublicOfferingAnnouncementforStockAin2000.
(4)TheoriginalsofalldocumentsandannouncementsthattheCompanymadepublicduringthereportperiodinthenewspapersdesignatedbyChinaSecuritiesRegulatoryCommission.
YantaiChangyuPioneerWineCo.,Ltd.
BoardofDirectors
April28
th,2021