2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Financial Report
1. Audit report
Whether the semiannual report has been audited
□ Yes √ No
2. Financial statement
The unit in the statements of the financial annotations is RMB Yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Ending balance Beginning balance
Current assets:
Monetary fund 7.1 1,550,067,781 1,391,517,607
Settlement reserves
Lending funds
Financial assets measured at the fair value and the variation of which is
recorded into the current profit and loss
Derivative financial assets
Bills receivable 7.2 378,804,230 210,470,027
Accounts receivable 7.3 167,152,509 173,062,628
Advance payment 7.4 2,114,086 2,175,606
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Interest receivable 7.5 368,928 24,200
Dividends receivable
Other receivables 7.6 16,311,182 18,880,800
Buying back the sale of financial assets
Inventories 7.7 2,024,302,929 2,248,609,740
Assets classified as holding and available for sale 7.8 2,000,197 2,000,197
Non-current assets due within one year
Other current assets 7.9 293,294,297 169,522,242
Total current assets 4,434,416,139 4,216,263,047
Non-current assets:
Offering loans and imprest
Available-for-sale financial assets 7.10 463,800 340,263
Held-to-maturity investments
Long-term receivables
Long-term equity investments
Investment real estate
Fixed assets 7.11 4,591,037,486 4,683,187,493
Construction in progress 7.12 1,697,297,440 1,346,281,737
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Ending balance Beginning balance
Construction materials
Disposal of fixed assets
Productive biological assets 7.13 198,024,312 201,428,980
Oil and gas assets
Intangible assets 7.14 479,362,173 483,815,080
Development expenditure
Goodwill 7.15 121,265,866 121,265,866
Long-term prepaid expenses 7.16 157,020,911 162,206,229
Deferred tax assets 7.17 259,844,790 295,937,037
Other non-current assets 7.18 335,245,554 17,352,239
Total non-current assets 7,839,562,332 7,311,814,924
Total assets 12,273,978,471 11,528,077,971
Current liabilities:
Short-term loans 7.19 846,881,075 662,388,882
Borrowings from the Central Bank
Customer and interbank deposits
Borrowing funds
Financial liabilities measured at the fair value and the variation of which
is recorded into the current profit and loss
Derivative financial liabilities
Bills payable 7.20 8,000,000 38,900,000
Accounts payable 7.21 399,318,487 545,231,319
Advances from customers 7.22 321,530,693 425,246,421
Financial assets sold for repurchase
Handling fees and commissions payable
Employee remunerations 7.23 158,977,820 206,431,734
Taxes payable 7.24 77,113,119 144,042,600
Interest payable 563,613
Dividends payable 7.25 703,430
Other payables 7.26 653,190,411 546,305,310
Dividend payable for reinsurance
Reserves for insurance contracts
Acting trading securities
Acting underwriting securities
Liabilities classified as holding and available for sale
Non-current liabilities due within one year 7.27 106,975,215 71,799,093
Other current liabilities 7.28 11,163,882 11,163,883
Total current liabilities 2,583,854,132 2,652,072,855
Non-current liabilities:
Long-term borrowings 7.29 175,270,580 49,140,555
Bonds payable
Including: Preferred stock
Perpetual capital securities
Long-term accounts payable 7.30 269,000,000 293,000,000
Long-term employee remunerations payable
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Ending balance Beginning balance
Special accounts payable
Estimated liabilities
Deferred income 7.31 97,348,319 101,775,243
Deferred tax liabilities 7.17 21,852,738 24,908,410
Other non-current liabilities 7.32 7,696,222 7,696,222
Total non-current liabilities 571,167,859 476,520,430
Total liabilities 3,155,021,991 3,128,593,285
Owner’s equity:
Capital stock 7.33 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual capital securities
Capital surplus 7.34 565,955,441 565,955,441
Minus: Treasury stock
Other comprehensive income 7.35 -3,800,205 -5,259,014
Special reserves
Surplus reserves 7.36 342,732,000 342,732,000
General risk preparation
Retained earnings 7.37 7,290,187,616 6,620,118,562
Total owner’s equities attributable to the parent company 8,880,538,852 8,209,010,989
Minority equity 238,417,628 190,473,697
Total owner’s equities 9,118,956,480 8,399,484,686
Total liabilities and owner’s equities 12,273,978,471 11,528,077,971
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Ending balance Beginning balance
Current assets:
Monetary fund 747,876,320 269,460,060
Financial assets measured at the fair value and the variation of which is
recorded into the current profit and loss
Derivative financial assets
Bills receivable 107,090,401 1,114,200
Accounts receivable 15.1 1,838,244 3,326,683
Advance payment 1,172,079 702,647
Interest receivable 34,313 24,200
Dividends receivable 324,673,936 531,819,113
Other receivables 15.2 3,539,710,433 3,582,532,862
Inventories 506,836,398 792,732,418
Assets classified as holding and available for sale 2,000,197 2,000,197
Non-current assets due within one year
Other current assets 58,168,826 20,085,058
Total current assets 5,289,401,147 5,203,797,438
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Ending balance Beginning balance
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 15.3 2,108,589,655 1,834,341,541
Investment real estate
Fixed assets 335,000,273 347,481,417
Construction in progress 268,929 500,000
Construction materials
Disposal of fixed assets
Productive biological assets 121,231,009 123,036,693
Oil and gas assets
Intangible assets 70,812,796 72,002,372
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets 25,477,622 26,985,252
Other non-current assets 2,747,906,376 2,617,457,460
Total non-current assets 5,409,286,660 5,021,804,735
Total assets 10,698,687,807 10,225,602,173
Current liabilities:
Short-term loans 700,000,000 500,000,000
Financial liabilities measured at the fair value and the variation of which
is recorded into the current profit and loss
Derivative financial liabilities
Bills payable
Accounts payable 61,360,245 247,568,857
Advances from customers 6,000,000 6,000,000
Employee remunerations 55,455,887 70,812,761
Taxes payable 14,378,705 33,266,225
Interest payable 0 563,613
Dividends payable 0 0
Other payables 813,653,329 368,310,362
Liabilities classified as holding and available for sale 0 0
Non-current liabilities due within one year 15,499,200 29,227,200
Other current liabilities 1,767,054 1,767,054
Total current liabilities 1,668,114,420 1,257,516,072
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual capital securities
Long-term accounts payable
Long-term employee remuneration payable
Special accounts payable
Estimated liabilities
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Ending balance Beginning balance
Deferred income 18,986,990 19,933,699
Deferred tax liabilities
Other non-current liabilities 2,499,403 2,499,403
Total non-current liabilities 21,486,393 22,433,102
Total liabilities 1,689,600,813 1,279,949,174
Owner’s equity:
Capital stock 685,464,000 685,464,000
Other equity instruments
Including: Preferred stock
Perpetual capital securities
Capital surplus 557,222,454 557,222,454
Minus: Treasury stock
Other comprehensive income
Special reserves
Surplus reserves 342,732,000 342,732,000
Retained earnings 7,423,668,540 7,360,234,545
Total owner’s equities 9,009,086,994 8,945,652,999
Total liabilities and owner’s equities 10,698,687,807 10,225,602,173
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Total operating income 2,767,098,197 2,753,032,799
Including: Operating income 7.38 2,767,098,197 2,753,032,799
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1,890,800,616 1,840,237,208
Including: Operating costs 7.38 925,754,133 902,734,104
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of the withdrawn reserve fund for insurance
contract
Policy bonus payment
Amortized reinsurance expenditures
Taxes and surcharges 7.39 160,473,998 153,081,792
Selling expenses 7.40 668,735,726 650,737,234
Administrative expenses 7.41 130,542,386 122,695,845
Financial expenses 7.42 11,147,949 10,988,233
Loss on impairment of assets 7.43 -5,853,576 0
Plus: Fair value change profit (loss is listed with "-")
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Investment profit (loss is listed with "-")
Including: Investment profit for joint-run business and joint
venture
Exchange income (loss is listed with "-")
Other income
3. Operating profit (loss is listed with "-") 876,297,581 912,795,591
Plus: Non-operating income 7.44 23,304,205 21,933,526
Including: Gains on disposal of non-current assets 156,600 94,567
Minus: Non-operating expenses 7.45 838,239 343,776
Including: Losses on disposal of non-current assets 651,671 110,052
4. Total profits (total loss is listed with "-") 898,763,547 934,385,341
Minus: Income tax expenses 7.46 228,752,790 238,715,481
5. Net profit (net loss is listed with "-") 670,010,757 695,669,860
Net profit attributable to owner of the parent company 670,069,054 695,021,847
Minority interest income -58,297 648,013
6. Net after-tax amount of other comprehensive income 7.47 1,767,741 6,701,754
Net after-tax amount of other comprehensive income attributable to
1,458,809 6,249,919
owner of the parent company
6.1 Other comprehensive income not to be reclassified into profit and
loss later
6.1.1 Net liabilities or net assets change after remeasuring and
resetting the benefit plans
6.1.2 Share enjoyed in other comprehensive income not to be
reclassified into profit and loss in invested unit under equity law
6.2 Other comprehensive income to be reclassified into profit and
1,458,809 6,249,919
loss later
6.2.1 Share enjoyed in other comprehensive income to be reclassified
into profit and loss in invested unit under equity law
6.2.2 Profit and loss from changes in fair value of financial assets for
sale
6.2.3 Profit and loss from reclassification of held-to-maturity
investment into fair value of financial assets for sale
6.2.4 Effective part of profit and loss of cash-flow hedge
6.2.5 Difference in translation of Foreign Currency Financial
1,458,809 6,249,919
Statement
6.2.6 Other
Net after-tax amount of other comprehensive income attributable to
308,932 451,835
minority shareholders
7. Total comprehensive income 671,778,498 702,371,614
(1) Attributable to owner of the parent company 671,527,863 701,271,766
(2) Attributable to minority shareholders 250,635 1,099,848
8. Earnings per share
(1) Basic earnings per share 0.98 1.01
(2) Diluted earnings per share 0.98 1.01
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Note Sum of current period Sum of prior period
1. Operating income 15.4 831,820,503 655,299,000
Minus: Operating costs 15.4 737,950,378 501,312,599
Taxes and surcharges 48,865,790 73,401,856
Selling expenses
Administrative expenses 40,078,068 55,027,172
Financial expenses 9,292,969 18,250,416
Loss on impairment of assets
Plus: Fair value change profit (loss is listed with "-")
Investment profit (loss is listed with "-") 15.5 66,127,980 683,891,453
Including: Investment profit for joint-run business and joint
venture
Other income
2. Operating profit (loss is listed with "-") 61,761,278 691,198,410
Plus: Non-operating income 1,134,756 1,141,128
Including: Gains on disposal of non-current assets 133,233 94,567
Minus: Non-operating expenses 143,042 36,839
Including: losses on disposal of non-current assets 122,785 21,839
3. Total profits (total loss is listed with "-") 62,752,992 692,302,699
Minus: Income tax expenses -681,003 2,102,811
4. Net profit (net loss is listed with "-") 63,433,995 690,199,888
5. Net after-tax amount of other comprehensive income
5.1 Other comprehensive income not to be reclassified into profit and
loss later
5.1.1 Net liabilities or net assets change after remeasuring and
resetting the benefit plans
5.1.2 Share enjoyed in other comprehensive income not to be
reclassified into profit and loss in invested unit under equity law
5.2 Other comprehensive income to be reclassified into profit and
loss later
5.2.1 Share enjoyed in other comprehensive income to be reclassified
into profit and loss in invested unit under equity law
5.2.2 Profit and loss from changes in fair value of financial assets for
sale
5.2.3 Profit and loss from reclassification of held-to-maturity
investment into fair value of financial assets for sale
5.2.4 Effective part of profit and loss of cash-flow hedge
5.2.5 Difference in translation of Foreign Currency Financial
Statement
5.2.6 Other
6. Total comprehensive income 63,433,995 690,199,888
7. Earnings per share
(1) Basic earnings per share 0.09 1.01
(2) Diluted earnings per share 0.09 1.01
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 2,524,565,138 2,706,821,883
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Cash received from receiving insurance premium of original
insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment funds
Net increase after disposal of financial assets measured at the fair
value and the variation of which is recorded into the current profit
and loss
Cash received from collecting interest, handling fees and commission
Net increase in borrowings
Net increase in repurchasement business funds
Tax refund received 12,777,072 13,866,472
Other cash received related to operating activities 38,889,912 27,834,008
Subtotal of cash flows of operating activities 2,576,232,122 2,748,522,363
Cash paid for goods and services 640,732,974 635,982,569
Net increase in customer loans and advances
Net increase in deposits in central bank and interbank deposits
Cash paid to original insurance contract payments
Cash paid to interest, handling fees and commission
Cash paid to policy bonus
Cash paid to and on behalf of employees 239,805,346 230,296,149
Cash paid for taxes and expenses 842,815,705 756,992,525
Other cash paid related to operating activities 432,517,778 442,502,751
Sub-total of cash outflows of operating activities 2,155,871,803 2,065,773,994
Net cash flow from operating activities 420,360,319 682,748,369
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term of over 3 months 3,000,000 8,000,000
Cash received from obtaining investment profit 25,550 28,483
Cash received from disposal of fixed assets, intangible assets and
233,355
other long-term assets 237,161
Net cash received from disposal of branch and other business unit
Other cash received related to investing activities
Subtotal of cash flows of investment activities 3,262,711 8,261,838
Cash paid to acquire fixed assets, intangible assets and other
398,151,685
long-term assets 282,149,010
Cash for investment
Cash paid to buy fixed deposit with the term of over 3 months 201,000,000 7,007,000
Net increase in hypothecated loan
Net cash paid to acquire branch and other business unit 762,436
Other cash paid related to investment activities 317,654,642
Subtotal of cash outflows of investment activities 800,803,652 405,921,121
Net cash flow from investing activities -797,540,941 -397,659,283
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Sum of current period Sum of prior period
3. Cash flow from financing activities
Cash received from acquiring investment 48,396,726
Including: cash received from acquiring minority shareholders
investment by branch 48,396,726
Cash received from acquiring loans 773,435,000 809,175,350
Cash received from issuing bonds
Other cash received related to financing activities 1,303,473
Subtotal cash flows of financing activities 823,135,199 809,175,350
Cash paid to pay debts 451,386,980 512,516,014
Cash paid to distribute dividend, profit or pay interest 17,869,513 16,940,912
Including: dividend and profit paid to minority shareholders by
branch
Other cash paid related to financing activities 20,000,000
Subtotal of cash outflows of financing activities 469,256,493 549,456,926
Net cash flow from financing activities 353,878,706 259,718,424
4. Influences of exchange rate fluctuation on cash and cash
6,885,883
equivalents -4,152,485
5. Net Increase in cash and cash equivalents -27,454,401 551,693,393
Plus: balance at the beginning of the period of cash and cash
equivalents 1,256,942,304 1,092,241,661
6. Balance at the end of the period of cash and cash equivalents 1,229,487,903 1,643,935,054
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
2.6 Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: Yuan
Item Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 570,587,513 595,186,103
Tax refund received
Other cash received related to operating activities 385,490,644 239,938
Subtotal of cash flows of operating activities 956,078,157 595,426,041
Cash paid for goods and services 269,148,068 324,226,720
Cash paid to and on behalf of employees 52,895,854 79,790,054
Cash paid for taxes and expenses 169,319,730 88,941,454
Other cash paid related to operating activities 62,494,076 846,691,535
Sub-total of cash outflows of operating activities 553,857,728 1,339,649,763
Net cash flow from operating activities 402,220,429 -744,223,722
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term of over 3 months 3,000,000 8,000,000
Cash received from obtaining investment profit 198,082,845 1,164,454,077
Net cash received from disposal of fixed assets, intangible assets and
206,280 231,240
other long-term assets
Net cash received from disposal of branch and other business unit
Other cash received related to investing activities
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Sum of current period Sum of prior period
Subtotal of cash flows of investment activities 201,289,125 1,172,685,317
Cash paid to acquire fixed assets, intangible assets and other
3,295,270 15,892,483
long-term assets
Cash for investment 329,440,824
Cash paid to buy fixed deposit with the term of over 3 months 105,000,000 7,007,000
Net cash paid to acquire branch and other business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 437,736,094 22,899,483
Net cash flow from investing activities -236,446,969 1,149,785,834
3. Cash flow from financing activities
Cash received from acquiring investment
Cash received from acquiring loans 700,000,000 400,000,000
Cash received from issuing bonds
Other cash received related to financing activities
Subtotal cash flows of financing activities 700,000,000 400,000,000
Cash paid to pay debts 514,667,600 420,114,492
Cash paid to distribute dividend, profit or pay interest 9,720,581 13,936,049
Other cash paid related to financing activities
Subtotal of cash outflows of financing activities 524,388,181 434,050,541
Net cash flow from financing activities 175,611,819 -34,050,541
4. Influences of exchange rate fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash equivalents 341,385,279 371,511,571
Plus: balance at the beginning of the period of cash and cash
238,003,198 143,798,080
equivalents
6. Balance at the end of the period of cash and cash equivalents 579,388,477 515,309,651
Legal Representative: Sun Liqiang Accounting Supervisor: Leng Bin Accounting Department Manager: Jiang Jianxun
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
2.7 Consolidated owner’s equity changing list
Unit: Yuan
This period
Owners’ equity of the parent company
Item Other equity instruments Minority
Minus: Other Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Perpetual Treasury comprehensive equity
Preferred
reserves reserves reserves preparation profits equity
capital stock income
stock Other
securities
1. Balance at the end of last
685,464,000 565,955,441 -5,259,014 342,732,000 6,620,118,562 190,473,697 8,399,484,686
year
Plus: Accounting policies
changing
Previous error correction
Business combination under
common control
Other
2. Balance at the beginning of
685,464,000 565,955,441 -5,259,014 342,732,000 6,620,118,562 190,473,697 8,399,484,686
this year
3. Increased or decreased
amount in this period (reducing 1,458,809 670,069,054 47,943,931 719,471,794
amount is listed with "-")
3.1 Total comprehensive
1,458,809 670,069,054 250,635 671,778,498
income
3.2 Owners' invested and
48,396,726 48,396,726
reduced capital
3.2.1 Shareholders’ invested
48,396,726 48,396,726
common stock
3.2.2 Other equity instrument
holders’ invested capital
3.2.3 Amount of shares paid
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
and reckoned in owners' equity
3.2.4 Other
3.3 Profit distribution -703,430 -703,430
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk
preparation
3.3.3 Distribution to owners
-703,430 -703,430
(or shareholders)
3.3.4 Other
3.4 Internal transfer of owners'
equity
3.4.1 Capital reserves
transferred and increased
capital (or capital stock)
3.4.2 Surplus reserves
transferred and increased
capital (or capital stock)
3.4.3 Surplus reserves covering
deficit
3.4.4 Other
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this
685,464,000 565,955,441 -3,800,205 342,732,000 7,290,187,616 238,417,628 9,118,956,480
period
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
Prior period
Owners’ equity of the parent company
Item Other equity instruments Minority
Minus: Other Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
equity
capital reserves reserves reserves preparation profits
stock Other stock income
securities
1. Balance at the end of last
685,464,000 565,955,441 -10,442,512 342,732,000 5,980,390,074 192,459,023 7,756,558,026
year
Plus: Accounting policies
changing
Previous error correction
Business combination under
common control
Other
2. Balance at the beginning of
685,464,000 565,955,441 -10,442,512 342,732,000 5,980,390,074 192,459,023 7,756,558,026
this year
3. Increased or decreased
amount in this period (reducing 5,183,498 639,728,488 -1,985,326 642,926,660
amount is listed with "-")
3.1 Total comprehensive
5,183,498 982,460,488 -1,438,903 986,205,083
income
3.2 Owners' invested and
reduced capital
3.2.1 Shareholders’ invested
common stock
3.2.2 Other equity instrument
holders’ invested capital
3.2.3 Amount of shares paid
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
and reckoned in owners' equity
3.2.4 Other
3.3 Profit distribution -342,732,000 -546,423 -343,278,423
3.3.1 Drew surplus reserves
3.3.2 Drew general risk
preparation
3.3.3 Distribution to owners (or
-342,732,000 -546,423 -343,278,423
shareholders)
3.3.4 Other
3.4 Internal transfer of owners'
equity
3.4.1 Capital reserves
transferred and increased capital
(or capital stock)
3.4.2 Surplus reserves
transferred and increased capital
(or capital stock)
3.4.3 Surplus reserves covering
deficit
3.4.4 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this
685,464,000 565,955,441 -5,259,014 342,732,000 6,620,118,562 190,473,697 8,399,484,686
period
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
This period
Other equity instruments Minus: Other
Item Capital Capital Special Surplus Undistributed Total owners’
Preferred Perpetual capital Treasury comprehensive
stock Other reserves reserves reserves profits equity
stock securities stock income
1. Balance at the end of last year 685,464,000 557,222,454 342,732,000 7,360,234,545 8,945,652,999
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685,464,000 557,222,454 342,732,000 7,360,234,545 8,945,652,999
3. Increased or decreased amount in this
63,433,995 63,433,995
period (reducing amount is listed with "-")
3.1 Total comprehensive income 63,433,995 63,433,995
3.2 Owners' invested and reduced capital
3.2.1 Shareholders’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and reckoned in
owners' equity
3.2.4 Other
3.3 Profit distribution
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
shareholders)
3.3.3 Other
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 557,222,454 342,732,000 7,423,668,540 9,009,086,994
Unit: Yuan
Prior period
Other equity instruments Minus: Other
Item Capital Capital Special Surplus Undistributed Total owners’
Preferred Perpetual capital Treasury comprehensive
stock reserves reserves reserves profits equity
stock securities Other stock income
1. Balance at the end of last year 685,464,000 557,222,454 342,732,000 5,872,392,075 7,457,810,529
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685,464,000 557,222,454 342,732,000 5,872,392,075 7,457,810,529
3. Increased or decreased amount in this
1,487,842,470 1,487,842,470
period (reducing amount is listed with "-")
3.1 Total comprehensive income 1,830,574,470 1,830,574,470
3.2 Owners' invested and reduced capital
3.2.1 Shareholders’ invested common stock
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and reckoned in
owners' equity
3.2.4 Other
3.3 Profit distribution -342,732,000 -342,732,000
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or shareholders) -342,732,000 -342,732,000
3.3.3 Other
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685,464,000 557,222,454 342,732,000 7,360,234,545 8,945,652,999
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
3. Company profile
Yantai Changyu Pioneer Wine Co., Ltd. (the “Company” or the “Joint-stock Company”) was
incorporated as a joint-stock limited company in accordance with the Company Law of the People’s
Republic of China (the “PRC”) in the merger and reorganization carried out by Yantai Changyu
Group Co., Ltd. (“Changyu Group Company”) with its assets and liabilities in relation to wine
business. The Company and its subsidiary companies (hereinafter collectively referred to as the
“Group”) are engaged in the production and sale of wine, brandy and champagne, planting and
purchase of grapes, development of tourism resources, etc. The registered address of the Company
is Yantai City, Shandong Province, and the office address of the headquarters is 56 Dama Road,
Zhifu District, Yantai City, Shandong Province.
As at June 30, 2017, the Company issued 685,464,000 shares accumulatively. Refer to Note 7.33
for the details.
The parent company of the Group is Changyu Group Company incorporated in China, which was
ultimately and actually controlled by four parties, including Yantai Guofeng Investment Holding
Co., Ltd., ILLVA Saronno Holding Spa, International Finance Corporation and Yantai Yuhua
Investment & Development Co., Ltd.
The financial statement and the consolidated financial statement of the Company were approved by
the Board of Directors on August 25, 2017.
The scope of the consolidated financial statement in this period can be seen in Note 9 “Equity in
other entities”. The scope changes of the consolidated financial statement in this period can be seen
in Note 8 “Changes of the consolidated scope”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Group implements the Accounting Standards for Business Enterprises (including the new and
revised editions published in 2014) (“ASBE”) published by the Ministry of Finance and relevant
regulations thereof. In addition, the Group also discloses relevant financial information in
accordance with Information Disclosure and Preparation Rules for Enterprises Publically Issuing
Securities No.15 ---- General Rules for Financial Statement (Revised in 2014).
Note-accounting basis and pricing principle
The note-accounting basis of financial accounting adopted by the Group is accrual system and the
measurement basis adopted by the Group in preparing its financial statement is historical cost.
Subsequently, if the assets are impaired, impairment provisions are made in accordance with
relevant accounting standards.
When the historical cost measurement is used, the assets are measured by the amount of cash or
cash equivalent when the assets are purchased or the fair value of the consideration. The liabilities
are measured by the actually received funds or assets for performing the current obligations, or the
contract amount for performing the current obligations, or the amount of cash or cash equivalent
paid for anticipated liabilities in the daily activities.
Fair value refers to a price received for selling an asset or paid for transferring a liability by the
market participant in orderly transactions on the measurement date. No matter the fair value is
observable or estimated by the valuation technique, the fair value measured and disclosed in this
financial statement is recognized on this basis.
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
The fair value measurement is divided into three levels based on the observable degree of the input
fair value and the importance of this input value on the whole fair value measurement:
*The input value of the first level is the unadjusted price of the same assets or liabilities which can
be acquired in an active market on the measurement date.
*The input value of the second level is the directly or indirectly observable input value of relevant
assets or liabilities except that of the first level.
*The input value of the third level is the unobservable input value of relevant assets or liabilities.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30, 2017, and
no issues or situations causing major doubts to this ability are found. Therefore, this financial
statement is prepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of ASBE and gives a true and integrated view of
the financial status and the consolidated financial status as at June 30, 2017, as well as the operating
result, the consolidated operating result, the cash flow and the consolidated cash flow of the
Company from January to June 2017.
5.2 Accounting period
The accounting period of the Group is from January 1 to December 31.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for processing
to the cash or cash equivalent is realized. The operating cycle of the Company is 12 months.
5.4 Recording currency
Since Renminbi (RMB) is the currency of the main economic environment in which the Company
and the domestic subsidiary companies thereof are situated, the Company and the subsidiary
companies thereof adopt RMB as the recording currency. The overseas subsidiary companies
thereof determine Euro and Peso as the recording currency according to the main economic
environment in which they are situated. The currency in this financial statement prepared by the
Group is RMB.
5.5 Accounting treatment method for business combination under common control and
non-common control
5.5.1 Business combination and goodwill under non-common control
A business combination under non-common control is a business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties before and after the
combination.
The combination cost shall be the fair value of the assets paid, the liabilities incurred or assumed or
the equity instruments issued by the acquirer in exchange for the control over the acquiree. The
intermediary expenses such as audit, legal services and assessment consultation and other related
management expenses paid by the acquirer for business combination are included in the current
profit and loss when they occur.
The identifiable assets, liabilities and contingent liabilities which are obtained from the acquiree in
the business combination and meet the recognition conditions shall be measured on the acquisition
date according to the fair value thereof.
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
If the combination cost is larger than the fair value of the identifiable net assets obtained from the
acquiree during the combination, the difference shall be recognized as business goodwill and
initially measured according to the cost thereof.
The goodwill formed due to business combination shall be separately listed in the consolidated
financial statement and measured on the basis of the cost minus the accumulative impairment
provision.
5.6 Compiling methods of consolidated financial statement
The consolidation scope of the consolidated financial statement is determined on the basis of
control. Control means that the investor holds the power in the invested party, obtains variable
returns by participating in relevant activities of the invested party and has the ability to affect the
amount of the returns by using the power on the invested party. Once any change of the relevant
facts and situations results in any change of relevant elements of the above definition of Control,
the Group will carry out reappraisal.
The merger of any subsidiary company starts from the date when the Group acquires the power to
control this subsidiary company, while the termination of any subsidiary company ends in the date
when the Group losses the power to control this subsidiary company.
As for any subsidiary company obtained in a business combination under non-common control, the
business result and the cash flow thereof since the acquisition date (date of obtaining the control
power) shall have been properly included in the consolidated income statement and the
consolidated cash flow statement.
The principal accounting policies and accounting period adopted by the subsidiary companies shall
be determined in accordance with the accounting policies and accounting period uniformly
regulated by the Company.
The influence of the internal transaction between the Company and the subsidiary companies as
well as among subsidiary companies on the consolidated financial statement shall be neutralized at
the time of combination.
The shares in the owner's equity of the subsidiary companies, which do not belong to the parent
company, shall be recognized as the minority equity and listed under the item of “minority equity”
of the owner’s equity in the balance sheet. The shares in the current profit and loss of the subsidiary
companies, which belong to the minority equity, shall be listed under the item of “minority equity”
of the net profit in the consolidated income statement.
If the loss of the subsidiary companies borne by minority shareholders exceeds the shares of the
owner's equity entitled therein by the minority shareholders at the beginning of the period, the
difference shall be still credited against the minority equity.
The transaction of purchasing the minority interest of any subsidiary company or that doesn’t lose
the control power of this subsidiary company due to disposal of partial equity investment shall be
recognized as equity transaction for business accounting, and the book value of the equity
attributable to the owner of the parent company and the minority equity shall be adjusted to reflect
the changes in the related rights and interests in the subsidiary company. The difference between
the adjusted amount of the minority interest and the fair value of the paid/received consideration
shall be adjusted as capital reserves. If the capital reserves are insufficient for offset, the retained
income shall be adjusted accordingly.
5.7 Recognition standards of cash and cash equivalents
Cash comprises cash on hand and demand deposit of the Company. Cash equivalents refer to
short-term highly liquid investments which are readily convertible into known amount of cash with
an insignificant risk of changes in value.
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
5.8 Foreign currency transaction and foreign currency statement translation
5.8.1 Foreign currency transaction
At the time of initial recognition of a foreign currency transaction, the amount of the foreign
currency shall be translated into the amount of the recording currency at the spot exchange rate on
the transaction date.
The monetary items of the foreign currency transaction shall be translated into RMB at the spot
change rate on the balance sheet date. The currency translation difference generated by the
difference between the spot change rate on the balance sheet date and the spot change rate at the
initial recognition or on the previous balance sheet date shall be included in the current profit and
loss, except: ① the currency translation difference of the dedicated foreign currency loan that
meets the capitalization condition shall be included in the cost of assets as capitalization during the
capitalization period; ② the currency translation difference of the arbitrage tool to avoid foreign
exchange risk shall be treated according to the hedge accounting method; ③ the currency
translation difference of the available-for-sale monetary items generated by the book value other
than the amortized cost shall be recognized as other comprehensive income and included in other
comprehensive income.
The amount of the non-monetary items of the foreign currency transaction measured by historical
cost shall be still translated into the amount in the recording currency at the spot exchange rate on
the transaction date. The non-monetary items of the foreign currency transaction measured by the
fair value shall be translated at the spot exchange rate on the fair value date, and the difference
between the amount in the recording currency and the amount in original recording currency shall
be treated as the change of the fair value (including exchange rate movement) and shall be included
in the current profit and loss or recognized as other comprehensive income.
5.8.2 Translation of foreign currency financial statement
In order to compile a consolidated financial statement, the foreign currency financial statement of
overseas business shall be translated into RMB financial statement in accordance with the
following methods: all asset and liability items in the balance sheet shall be translated at the spot
exchange rate on the balance sheet date; the shareholders' equity items, except for the ones as
"undistributed profits", shall be translated at the spot exchange rate at the time when they occur; all
items and the items reflecting the accrual profit distribution in the profit statement shall be
translated at the exchange rate similar to the spot exchange rate at the time when they occur; the
undistributed profits at the beginning of the year shall be the translated to the undistributed profits
at the end of the previous year; the undistributed profits at the end of the year shall be calculated
and listed as the translated profit distribution items; and the difference between the asset items and
the sum of the liability items and the shareholders’ equity items shall be recognized as other
comprehensive income and included in the shareholder's equity.
The foreign currency cash flows and the cash flows of the overseas subsidiary companies shall be
translated at the exchange rate similar to the spot exchange rate at the time when they occur; the
amount of the cash and cash equivalents impacted by the exchange rate movement shall be, as a
reconciling item, separately listed under “impact of exchange rate movement on cash and cash
equivalents” in the cash flow statement.
The balance at the beginning of the year and the actual amount of the previous year shall be listed
as the amount translated according to the financial statement of the previous year.
5.9 Financial instruments
When becoming a party to a contract of financial instruments, the Group shall recognize a financial
asset or financial liability. The financial assets and financial liabilities shall be measured at their
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
fair value at the time of initial recognition. For other categories of financial assets and financial
liabilities, relevant transaction expenses thereof shall be included in the initially recognized
amount.
5.9.1 Effective interest method
The effective interest method refers to the method by which the amortized cost and the interest
income or expenditure of different installments are calculated in light of the effective interest rates
of the financial assets or financial liabilities (including a group of financial assets or financial
liabilities). The effective interest rate refers to the interest rate adopted to cash the future cash flow
of a financial asset or financial liability within the predicted term of existence or within a shorter
applicable term into the current book value of the financial asset or financial liability.
When the effective interest rate is calculated, the Group predicts the future cash flow (taking no
account of the future credit loss) on the basis of considering all the contractual provisions
concerning the financial assets or financial liabilities, as well as all kinds of charges, transaction
expenses, discounts, premiums, etc. which are paid, charged, and included in the effective interest
rate between the contracting parties of the financial assets or liabilities.
5.9.2 Classification, recognition and measurement of financial assets
Financial assets are classified into the following categories when they are initially recognized: the
financial assets which are measured at the fair value and the variation of which is included in the
current profit and loss, the investments which will be held to their maturity, loans, accounts
receivable and available-for-sale financial assets. The financial assets purchased and sold through
common modes shall be recognized and terminated from recognition according to the accounting
on the transaction date. The financial assets held by the Group are loans, accounts receivable and
available-for-sale financial assets.
Loans and accounts receivable
Loans and accounts receivable refer to the non-derivative financial assets for which there is no
quoted price in an active market and of which the repo amount is fixed or determinable. The
financial assets classified by the Group into loans and accounts receivable include monetary capital,
bills receivable, accounts receivable, interest receivable, dividends receivable and other
receivables.
The loans and accounts receivable shall be subsequently measured at amortized cost by adopting
the effective interest rate method. The profits or losses that occur when such loans and accounts
receivable are terminated from recognition, impaired or amortized shall be included in the current
profit and loss.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as
available for sale at the time of initial recognition and the financial assets other than those
measured at their fair value and the variation of which is included in the current profit and loss,
loans, accounts receivable and the investments which will be held to their maturity.
The equity instrument investment without quoted market price in an active market whose fair value
cannot be reliably measured shall be measured by cost.
5.9.3 Impairment of financial assets
On each balance sheet date, the Group checks the book value of the financial assets. If there is any
objective evidence indicating that a financial asset is impaired, the impairment provision is accrued.
Objective evidence indicating the impairment of financial assets refers to those occurring after the
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
initial recognition, have effect on the estimated future cash flow of the financial assets, and can be
measured reliably.
The objective evidence indicating the impairment of the financial assets includes the following
observable matters:
① A serious financial difficulty occurs to the issuer or the debtor;
② The debtor breaches any of the contractual stipulations, such as, failure to pay or delay of
the payment of interest or principal;
③ The Group makes any concession due to economic, legal factors or other factors to the
debtor which is in financial difficulties;
④ The debtor will probably become bankrupt or carry out other financial reorganizations;
⑤ The financial assets can no longer continue to be traded in an active market due to serious
financial difficulties of the issuer;
⑥ It is impossible to identify whether the cash flow of a certain asset within a certain group
of financial assets has decreased or not. But after making an overall appraisal according to
the public data available, it is found that the estimated future cash flow of the said group of
financial assets has indeed decreased since it was initially recognized and such decrease
can be measured, including:
* The payment ability of the debtor of the said group of financial assets worsens gradually;
* The country or economic region where the debtor is situated has the conditions that may
cause the financial assets to be unpaid.
⑦ A serious unfavourable change occurs to the operating technology, market, economic
environment, legal environment of the issuer of the equity instruments that causes the
investor of the equity instruments can’t recover the investment costs;
⑧ The fair value of the equity instrument investment has serious or permanent decline; and
⑨ Other objective evidence showing the depreciation of the financial assets.
* Impairment of financial assets measured by amortized cost
Where a financial asset measured at amortized cost is impaired, the book value of the said financial
asset shall be written down to the current value of the predicted future cash flow determined
according to the capitalization of original effective exchange rate (excluding the loss of future
credits not yet occurred), and the amount as written down shall be recognized as loss of the
impairment of the asset and shall be included into the current profit and loss. If there is any
objective evidence proving that the value of the said financial asset has been restored, and it is
objectively related to the events that occur after such loss is recognized, the impairment losses
originally recognized shall be reversed. However, the reversed book value shall not be any more
than the amortized costs of the said financial asset on the day of reverse under the assumption that
no provision is made for the impairment.
An impairment test shall be made by the Group independently on the individually significant
financial assets; with regard to not individually significant financial assets, an independent
impairment test may be carried out, or they may be included in a combination of financial assets
with similar credit risk characteristics so as to carry out an impairment-related test. Where, upon
independent test, the financial asset (including the individually significant financial assets and not
individually significant financial assets) has not been impaired, it shall be included in a
combination of financial assets with similar credit risk characteristics so as to conduct another
impairment test. Assets that are individually assessed for impairment and for which an impairment
loss is or continues to be recognized shall not be included in the combination of the financial assets
with similar credit risk characteristics for impairment test.
* Impairment of available-for-sale financial assets measured by cost
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
When the equity instrument investment without quoted market price in an active market and the
fair value of which cannot be reliably measured is impaired, the book value is decreased to the
current value confirmed by the discounted future cash flow according to the current market return
of the similar financial assets. The decreased amount is recognized as impairment loss and included
in the current profit and loss. The impairment loss of this kind of financial assets can’t be
transferred back upon confirmation.
5.9.4 Transfer of financial assets
Where a financial asset satisfies any of the following conditions, it shall be terminated from
recognition: ① Where the contractual rights for collecting the cash flow of the said financial asset
are terminated; ② Where the said financial asset has been transferred and all the risks and rewards
of the financial asset have been substantially transferred to the receiver; ③ Where the financial
asset has been transferred, although the Group does not transfer or retain almost all the risks and
rewards of the financial asset, the Group still waives the control over the financial asset.
Where the overall transfer of the financial asset satisfies the derecognition conditions, the
difference between the book value of the transferred financial asset as well as the consideration
received due to such transfer and the summation of the cumulative amount of the fair value of the
asset that is originally included in other comprehensive income shall be included in the current
profit and loss.
5.9.5 Classification, recognition and measurement of financial liabilities
The Group classifies the financial instruments or the components as financial liabilities or equity
instruments at the time of initial recognition according to the contract terms of the issued financial
instruments and the reflected economic essence rather than only the legal form, considering the
definition of financial liabilities and equity instruments.
The financial liabilities are classified as the financial liabilities and other financial liabilities
measured by fair value and the variation of which is included in the current profit and loss at the
time of initial recognition. The financial liabilities of the Group are other financial liabilities,
including short-term loans, bills payable, accounts payable, interest payable, other payables,
non-current liabilities due within one year, long-term loans and long-term payables.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost by adopting effective
interest rate method, wherein the profits or losses that arise when such financial liabilities are
terminated from recognition or amortized shall be included in the current profit and loss.
5.9.6 Terminated recognition of financial liabilities
When the prevailing obligations of a financial liability are relieved in all or in part, the recognition
of the financial liability shall be terminated in all or in part.
Where the recognition of a financial liability is totally or partially terminated, the difference
between the book value of the part which has been terminated from recognition and the
consideration which has been paid (including the transferred non-cash assets and the assumed new
financial liabilities) shall be included into the current profit and loss.
5.9.7 Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities
and this right can be implemented at present, and when the Group plans to use net settlement or
liquidate the financial assets and pay off the financial liabilities, the amount after the financial
assets offset the financial liabilities is listed in the balance sheet. Besides, the financial assets and
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
the financial liabilities are respectively listed in the balance sheet without offset.
5.9.8 Equity instruments
The equity instruments mean the contracts by which to hold the residual equity in the assets of the
Group after deducting all the liabilities. The issuing (including refinancing), counter purchase, sale
or cancellation of the equity instruments by the Group shall be handled as changes of the equity.
The Group doesn’t recognize any change to the fair value of the equity instruments. The transaction
expenses related to the equity transaction shall be deducted from the equity.
The distribution related to the equity instrument holder by the Group shall be considered as profit
distribution, and the issued share dividends don’t affect the total amount of the shareholders’
equity.
5.10 Accounts receivable
5.10.1 Bad account provision of individually significant accounts receivable
The accounts receivable with the amount above RMB
Judgment reference or amount standard for individually
3,000,000 Yuan shall be recognized by the Group as the
significant accounts
individually significant accounts receivable.
An impairment test shall be made independently by the
Group on the individually significant financial assets.
Where, upon independent test, the financial asset has not
been impaired, it shall be included in a combination of
financial assets with similar risk characteristics so as to
Accruing method for individually significant accounts accrued for
conduct another impairment test. The accounts receivable
bad account provision individually
that are independently assessed for impairment and for
which an impairment loss is or continues to be recognized
shall not be included in the combination of accounts
receivable with similar credit risk characteristics for
impairment test.
5.10.2 Individually insignificant accounts receivable accrued for bad account provision
individually
If there is objective evidence that the Group can’t call back the accounts
Reasons for accruing for bad account
according to original articles, the individually insignificant accounts receivable
provision individually
can be accrued for bad account provision individually.
The impairment losses are recognized according to the difference between the
Methods for accruing bad account
present value of future cash flow and the book value, and impairment provision
provision
is accrued.
5.11 Inventories
5.11.1 Classification of inventories
Inventories of the Group comprise raw materials, goods in process and commodity stocks. The
inventories are initially measured by cost. The inventory cost consists of purchase cost, processing
cost and other expenditures to make inventories reach the current site and state.
5.11.2 Pricing methods for sending out inventories
Weighted average method is used to determine the actual cost for sending out inventories when
sending them out.
The agricultural products after the harvest are handled in accordance with the ASBE 1- Inventories.
5.11.3 Recognition reference of the net realizable value of inventories
Inventories are stated at the lower of cost and net realizable value on the balance sheet date. If the
net realizable value is lower than the cost of inventories, the provision for the loss on decline in
value of inventories are made. The net realizable value refers to the amount: the estimated sale
price of inventories deducting the estimated cost to happen till completion, the estimated selling
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
expense and relevant taxes, in daily activities. Based on the acquired concrete evidence, the
purpose for holding inventories and the impact of matters after balance sheet date shall be also
considered during recognition of the net realizable value of inventories.
The inventories are accrued inventory depreciation provision according to the difference of single
inventory item and its net realizable value.
After accruing inventory depreciation provision, if the previous influence factors writing down
inventories value disappear resulting in the net realizable value of the inventories being higher than
their book value, it shall be reversed from the originally accrued inventory depreciation provision
amount and the reversed amount shall be included in the current profit and loss.
5.11.4 Inventory system for the inventories
Inventory system: Perpetual inventory system
5.11.5 Amortization method of low-priced and easily-worn articles and packages
Amortization method of packages and low-priced and easily-worn articles: One-off amortization
method
5.12 Those divided into assets held for sale
When a non-current asset of the Group (excluding deferred income tax asset) meets the following
conditions simultaneously, the Group shall recognize it as holding for sale: This non-current asset
can be sold immediately at the current state only according to the usual terms for selling such
non-current assets; a resolution has been passed related to the disposal of this non-current asset; an
irrevocable transfer agreement has been signed with the transferee; and this transfer will be
completed within one year. As for non-current assets held for sale, the Group shall not withdraw the
depreciation or carry out amortization, and the book value or the net amount deducting the disposal
expenses from the fair value, whichever is less, shall be used for calculation.
5.13 Long-term equity investments
5.13.1 Judgment standard of control, common control and significant impact
Control means that the investor holds the power in the invested party, obtains variable returns by
participating in relevant activities of the invested party and has the ability to affect the amount of
the returns by using the power on the invested party. Common control means a joint control over a
certain arrangement according to relevant agreements and relevant activities of this arrangement
must be decided upon unanimous consent of the participants sharing the control power. Significant
impact refers to the right to participate in decision-making of the investor’s financial and operating
policies but not controlling or commonly controlling the formulation of these policies with other
parties. When determining whether to control or exert significant influence on the invested unit, the
potential voting power factors such as the current convertible company bonds and the current
executable equity warrants held by the investor and other parties in the invested unit have been
considered.
5.13.2 Recognition of initial investment cost
For long-term equity investments acquired from business combination under non-common control,
the combination cost shall be regarded as the initial investment cost of the long-term equity
investments on the acquisition date. For the business merger ultimately formed under non-common
control with the stock rights of the purchased party step by step through several transactions, it
shall be handled depending on whether it is a “package deal”: If it belongs to a “package deal”,
each transaction shall be regarded as a transaction with the control power acquired for the
accounting treatment.
The intermediary expenses such as audit, legal services and assessment consultation and other
related management expenses paid by the acquirer for business combination are included in the
current profit and loss when they occur.
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
For long-term equity investments other than those formed by business combination, initial
measurement shall be carried out according to the cost.
5.13.3 Subsequent measurement and recognition of loss and profit
Long-term equity investments by cost method
Long-term equity investments in the subsidiary companies are measured on cost method basis in
the corporate financial statement. Subsidiary companies refer to the invested entities by which the
Group has control.
When cost method is adopted, the long-term equity investments are measured at the initial
investment cost. In case of additional or recovered investment, the cost of the long-term equity
investments shall be adjusted accordingly. The current investment income shall be recognized
according to the cash dividends or profits declared to issue by the invested unit.
5.13.4 Disposal of long-term equity investments
When the long-term equity investments are disposed, the difference between the book value and
the actually acquired price is included in the current profit and loss.
5.14 Fixed assets
5.14.1 Recognition conditions
Fixed assets refer to the tangible assets held for producing goods, rendering services, leasing or
operation management, with service life exceeding one accounting year. Fixed assets can only be
confirmed that the economic benefits related to the fixed assets are likely to flow into the Group,
and the cost of the fixed assets can be measured reliably. Initial measurement for fixed assets shall
be carried out according to the cost. For the subsequent expenses related to the fixed asset, if the
economic benefits related to the fixed asset are likely to flow into the Group and the cost thereby
can be reliably measured, the subsequent expenses are included in fixed asset cost and the book
value of the substituted part shall be terminated. Other subsequent expenses shall be included in the
current profit and loss.
5.14.2 Depreciation methods
Depreciation is calculated by the straight-line depreciation within the service life from the month
following having been put into operation. The estimated service life, residual value and annual
depreciation rate are as follows:
Classification Depreciation method Depreciation life Residual value rate Annual depreciation rate
Straight-line
Houses and buildings 20-40 years 0-5% 2.4%-5.0%
depreciation
Straight-line
Machinery equipment 5-20 years 0-5% 4.8%-20.0%
depreciation
Straight-line
Transportation tools 4-12 years 0-5% 7.9%-25.0%
depreciation
The estimated residual value refers to the amount that the Group obtains from disposal of the assets
at present after deducting the predicted disposition expenses at an estimated state on the assumption
that the predicted service life of the fixed assets has expired.
5.14.3 Other description
When the fixed assets are under disposal state or cannot generate any economic benefits through
use or disposal as expected, the fixed assets shall be derecognized. The selling, transfer, scrapping
or damage disposal income shall be included in the current profit and loss after deducting the book
value and relevant taxes.
The Group reviews the service life, expected net residual value, and the depreciation method of the
fixed assets at least at the end of each year, and in case of any change, the change will be disposed
27
2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
as accounting estimate change.
5.15 Construction in progress
Construction in progress is measured by actual costs, and the actual costs include all costs of the
engineering during the period of construction, capitalized borrowing costs before the engineering
reaches the planned serviceable condition and other related costs. The construction in progress is
not depreciated. The construction in progress is transferred to fixed assets after reaching the
planned serviceable condition.
5.16 Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset shall be capitalized after expenditure to acquire happens, borrowing costs happen,
acquisition, construction or production essential for making the assets ready for their intended use
or sales. Capitalization of borrowing costs shall cease when all the activities necessary to prepare
the qualifying asset for its intended use of sale are substantially complete. If the acquisition,
construction or production of a qualifying asset is abnormally interrupted, and the interruption
period exceeds three months, the capitalization of borrowing costs shall be temporarily ceased,
until the construction or production resumes. Other borrowing costs are recognized as expenses
when occur. The amount after deducting the interest income of the borrowing funds that have not
yet been used which are deposited in bank or the investment income from temporary investment
from the interest expenses actually incurred in the current period of special borrowings shall be
capitalized.
5.17 Biological assets
The biological assets of the Group are productive biological assets.
Productive biological assets refer to the biological assets held for the purposes of producing
agricultural products, rendering services or leasing, etc. The productive biological assets of the
Group are vines that produce grapes. Initial measurement for the productive biological assets is
carried out according to the cost. For the occurred cost of the self-breeding productive biological
asset before achieving the intended production and operation purposes can be directly attributable
to the necessary expenses of the asset, including the borrowing cost conforming to capitalization.
The productive biological assets are not accrued depreciation until reaching the intended
production and operation purposes. After reaching the intended production and operation purposes,
the productive biological assets are accrued depreciation within the service life straight-line
depreciation. The service life, estimated net residual value rate and annual depreciation rate of
different productive biological assets are as follows:
Category of assets Service life Estimated residual value rate (%) Annual depreciation rate
Vines 20 years 5%
The service life of the productive biological assets of the Group and the estimated residual value
are confirmed by the normal service life cycle of the biological assets.
The Group reviews the service life, expected net residual value, and the depreciation method of the
productive biological assets at least at the end of each year. In case of any change, the change will
be disposed as accounting estimate change.
At the time of sale, loss, death, damage or destroy of a productive biological asset, the difference
after deducting the book value and relevant taxes from the disposal income are included in the
current profit and loss.
5.18 Intangible assets
5.18.1 Pricing method, service life and impairment test
Intangible assets include land use right, software, etc.
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Initial measurement for intangible assets is carried out according to the cost. For the intangible
assets with finite lives, since they are available, the amount after the original value deducts
expected net residual value and the accrued accumulative amount of provision for impairment is
amortized evenly based on straight line method. The intangible assets with indefinite service life
are not amortized. The amortization method, service life and estimated residual value of all kinds
of intangible assets are shown as follows:
Category of assets Service life Estimated net residual value rate Annual amortization rate
Land use right 40-50 years - 2-2.5%
Software 5-10 years - 10-20%
Trademark 10 years - 10%
At the end of the period, the service life and amortization method of the intangible assets with finite
service life shall be reviewed and adjusted if necessary.
5.19 Impairment of long-term assets
On each balance sheet date, the Group and the Company check the long-term equity investments,
fixed assets, construction in progress, productive biological assets and intangible assets with finite
service life to determine whether there is a sign indicating any impairment. If there is such a sign,
the recoverable amount shall be estimated.
The estimated recoverable amount of the asset is based on the single asset. If it is difficult to
estimate the recoverable amount of a single asset, the recoverable amount is determined based on
the asset group which the asset is in. The recoverable amount is the higher one between the net
amount after the disposition expenses are deducted from the fair value of the asset or the asset
group and the current value of the estimated future cash flow.
If the recoverable amount of the asset is lower than its book value, the impairment provision of the
asset is accrued based on the difference and included in the current profit and loss.
Impairment test is carried out for goodwill at least at the end of each year. The impairment test of
goodwill shall be carried out in combination with the related asset group or asset combination. That
is to say, the book value of the goodwill is amortized to the asset group or asset combination
benefiting from the synergistic effect of the business combination according to the reasonable
methods from the acquisition date. If the recoverable amount of the asset group or asset
combination which includes the amortized goodwill is lower than the book value, the
corresponding impairment loss is recognized. The amount of impairment loss shall firstly offset the
book value of the goodwill amortized to the asset group or asset combination and then offset the
book value of other assets in proportion according to the proportion in the book value of other
assets in the asset group or asset combination except for the goodwill.
After the impairment loss of assets has been recognized, it is not be reversed in the future
accounting periods.
5.20 Long-term unamortized expenses
Amortization period of different long-term unamortized expenses of the Group are listed as follows:
Amortization period
Land requisition fee 50 years
Land leasing fee 50 years
Afforestation fee 5-20 years
Decoration fee 3-5 years
Other 3 years
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
5.21 Employee remunerations
5.21.1 Accounting treatment method of short-term remunerations
During the accounting period that the employees provide services for the Group, the actual
short-term remunerations are recognized as liabilities and included in the current profit and loss or
relevant asset costs. The welfare expenses of the employees in the Group are included in the
current profit and loss or relevant asset costs when occur based on the actual amount. The
non-monetary welfare expenses of the employees are measured by the fair value.
During the accounting period that the employees provide services for the Group, the corresponding
employee remunerations and the corresponding liabilities are recognized and included in the
current profit and loss or relevant asset costs after the social insurance premiums including medical
insurance premium, industrial injury insurance premium and birth insurance premium as well as
housing provident funds are paid by the Group for the employees, and labor union dues and
employee education funds are withdrawn by the Group according to the regulated withdrawing
base and proportion.
5.21.2 Accounting treatment method of welfare after resignation
The Group makes the contribution plan for the welfare after resignation.
During the accounting period that the employees provide services for the Group, the amount to be
deposited which is calculated in accordance with the contribution plan is recognized as liabilities
and included in the current profit and loss or relevant asset costs.
5.21.3 Accounting treatment method of welfare after dismission
If the Group provides dismission welfare to the employees, the employee remuneration liabilities
caused by the dismission welfare shall be recognized and included in the current profit and loss on
the following date which is earlier: The Group can’t unilaterally withdraw the dismission welfare
due to termination of labor relation plan or redundancy suggestion; or the Group confirms the costs
or expenses related to the reorganization involving the payment of the dismission welfare.
5.22 Revenue
5.22.1 Revenues from sale of goods
When the significant risks and rewards of ownership of goods have been transferred to the buyer,
provided that the Group maintains neither continuous management right involvement to the degree
usually associated with ownership, nor effective control over the goods sold, and cost of sales can
be measured reliably. When the relevant economic benefits are likely to flow into the enterprise
and the relevant incurred cost or cost to be incurred can be measured reliably, the realization of the
revenue from sale of goods can be recognized.
5.22.2 Rendering of services
When income amount of rendering of services can be measured reliably, the relevant economic
benefits are likely to flow into the Group, the stage of completion of the transaction can be
measured reliably, and the incurred cost or cost to be incurred in the transaction can be measured
reliably, then the income realization of rendering of services can be recognized. The Group
confirmed the income of the rendered services according to percentage-of-completion method on
the balance sheet date. The percentage-of-completion of the service transaction is determined
according to the proportion of the rendered service accounting for the total services that shall be
rendered.
If the outcome of rendering of service transaction cannot be reliably estimated, the income of the
rendered services are determined according to the render cost amount that is incurred and is
expected to be compensated, and the incurred service cost shall be the period charge. If the incurred
service cost is expected to be unable to be compensated, the income will not be determined.
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
5.23 Governmental subsidies
5.23.1 Judgment standard and accounting treatment method of governmental subsidies
related to assets
Governmental subsidies refer to monetary or non-monetary assets received by the Group from the
government. According to the nature of the granted object clearly stipulated in relevant government
documents, governmental subsidies include those related to assets and those related to income.
Governmental subsidies are recognized where there is a reasonable assurance that the allowances
will be received and all attaching conditions will be complied with. Monetary allowances are
measured on the basis of the amount received or the amount receivable.
Governmental subsidies related to assets are recognized as deferred income and are distributed
equally in the current profit and loss within the useful lives of the relevant assets.
5.23.2 Judgment standard and accounting treatment method of governmental subsidies
related to revenues
The governmental subsidies related to revenues to be used as compensation for future expenses or
losses are recognized as deferred income and are included in the profit and loss statement for the
period where the relevant expenses are recognized; or those to be used as compensation for
relevant expenses or losses already occurred are recorded directly in the current profit and loss.
5.24 Deferred income tax assets/deferred income tax liabilities
The income tax expenses include the current income tax and deferred income tax.
5.24.1 Current income tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current period
and the prior periods are measured according to the predicted payable (refundable) income tax
amount as stipulated by tax law.
5.24.2 Deferred income tax assets and deferred income tax liabilities
The balance sheet liability method is used for recognizing deferred income tax assets and deferred
income tax liabilities for the difference between certain assets, book value of liability items and
their tax base, and the temporary differences arising from the book value of items (that are not
recognized as assets and liabilities but can be recognized the tax bases as stipulated by tax law) and
tax bases.
Normally all temporary differences are recognized the relevant deferred income taxes. However,
for the deductible temporary differences, the Group recognized the relevant deferred income tax
assets taking the taxable income that is likely to be obtained for deducting deductible temporary
differences as the limit. In addition, the temporary differences relevant to initial recognition of
goodwill and relevant to the initial recognition of assets or liabilities arising from transaction not of
business combination, and not influencing accounting profit and taxable income (or deductible loss)
are not recognized for the relevant deferred income tax assets or liabilities.
For the deductible losses and tax credits that can be transferred during subsequent years, the
corresponding deferred income tax assets shall be recognized by taking the future taxable income
that is likely to be used to deduct deductible losses and tax credits as the limit.
The Group recognized the deferred income tax liabilities arising from the taxable temporary
differences relevant to the subsidiary companies, except for that the Group can control the time of
the reverse of the temporary differences which are unlikely to be reversed in the foreseeable future.
For the deductible temporary differences relevant to the subsidiary companies, the Group will
recognize the deferred income tax assets only when the temporary differences are likely to be
reversed in the foreseeable future and the taxable income for deducting deductible temporary
differences is likely to be achieved in the future.
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are
measured according to the applicable tax rate during the period of expecting to repossess the
relevant assets or pay off relevant liabilities as stipulated by tax law.
Except for the current income taxes and deferred income taxes (relevant to transaction and matter
that are directly included in other comprehensive income or stockholder's equity) that are included
in other comprehensive income or stockholder's equity and the deferred income taxes arising from
business combination that adjusts the book value of the goodwill, the expenses or revenues of other
current income taxes and deferred income taxes are included in the current profit and loss.
On the balance sheet date, the Group shall review the book value of deferred income tax assets and
shall write down the book value of deferred income tax assets if sufficient taxable income is
unlikely to be obtained in the future to deduct the benefits of deferred income tax assets. The
amount written down shall be reversed when it is likely to obtain sufficient taxable income.
5.24.3 Offset of income tax
When there is the legal right of netting or intention of netting or carrying out obtaining assets and
paying off liabilities at the same time, the current income tax asset and current income tax liability
of the Group are reported according to the net amount after offset.
When there is the legal right of netting the current income tax asset and current income tax liability
and the deferred income tax assets and deferred income tax liabilities are relevant to the income tax
collected by same tax collection and management department on the same taxpayer or different
taxpayers, however, the involved tax payers intend to net the current income tax assets and
liabilities or obtain assets and pay off liabilities at the same time during every period of reverse of
each significant deferred income tax assets and liabilities in the future, deferred income tax assets
and deferred income tax liabilities of the Group are reported according to the net amount after
offset.
5.25 Lease
The term “financing lease” refers to a lease that has transferred in substance all the risks and
rewards related to the ownership of an asset. Other leases except for financing lease are the
operating lease.
5.25.1 Accounting treatment method of operating lease
The Group records the operating lease business as a lessee.
Rental expenses under the operating lease are credited to related costs of the assets or the current
profit and loss on the straight line basis over the lease terms. The initial direct expenses are
included in the current profit and loss.
5.26 Changes in main accounting policies and accounting estimates
5.26.1 Changes in main accounting policies
Nil
5.26.2 Changes in main accounting estimates
Nil
5.27 Other
Critical assumptions and uncertain factors adopted for important judgements and accounting
estimates during the application of the accounting policies
During the application of the accounting policies of this Financial Report IV, the Group needs to
judge, estimate and assume the book value of the report items that are unable to be accurately
measured due to the inherent uncertainties of business activities, in which the judgment, estimation
and assumption are made based on the previous historical experience of the management level of
32
2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
the Group and considering other relevant factors. The actual results may have differences from the
estimation of the Group.
The Group regularly reviews the above-mentioned judgment, estimation and assumption based on
the continuous operation, and the change of accounting estimate only affects the current period of
change, of which the influence number will be recognized at the current period of change; in case
of influencing both current period and future period of change, the influence number will be
recognized at the current period and future period of change.
Critical assumptions and uncertain factors adopted for accounting estimates
On the balance sheet date, the main critical assumptions and uncertainties in accounting estimates
that are likely to result in significant adjustments in assets and book value of liabilities in the future
period include:
Deferred income tax assets
Within the limit of the likeliness that there is sufficient taxable income to deduct deductible losses,
the deferred income tax assets shall be recognized according to all deductible losses that have not
been utilized, which requires the management level to use a lot of judgments to estimate the
occurred time and amount of taxable income to be obtained in the future, and combine with tax
planning strategy to decide the amount of deferred income tax assets that shall be recognized.
Depreciation
The Group uses straight line method for provision for depreciation within the expected service life
after considering the residual value of the fixed assets. The Group regularly reviewed the expected
service life to decide the amount of depreciation expense that will be included in every report
period. The expected service life is recognized by the Group according to the previous experience
on similar assets and in combination with the expected technical changes. The depreciation expense
shall be adjusted if there are significant changes in the previous estimate.
Service life of intangible assets
The expected service life of intangible assets are estimated based on actual service life of the
previous intangible assets of similar natures and functions and according to historical experience
and in consideration of the duration of the contractual rights or other legal rights applicable to the
intangible assets.
In case that the service life of the intangible assets shortens or extends, the amortization period will
be adjusted in the future period for intangible assets with finite life.
Impairment of long-term assets
The Group carries out impairment assessment on long-term assets to determine if the recoverable
amount of assets drops to the amount lower than their book value. If the situation shows that the
book value of the long-term assets may not be fully recovered, the relevant assets will be deemed
as having been impaired and the impairment loss shall be correspondingly recognized.
The recoverable amount is the higher in: the net amount of fair value of an asset (or asset group)
minus disposal expense, and the present value of the estimated future cash flow of the asset (or
asset group). It is difficult for the Group to accurately estimate the fair value of an asset because of
difficulty in obtaining the open market price of the asset (or asset group). It needs to make
significant judgments on the output, selling price, relevant operating cost of the asset (or asset
group) and the discount rate used for calculating present value when estimating the present value of
future cash flow. The Group will use all easily available materials in estimating the recoverable
amount, including the forecast relevant to output, selling price and relevant operating cost
according to the reasonable and supportable assumption.
Bad account provision for accounts receivable
Bad account provision for accounts receivable shall be recognized by the management level
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
according to the objective evidences (e.g. the possibility of bankruptcy or severe financial difficulty
of the debtor) that can affect the recovery of the accounts receivable. The management level will
reevaluate bad account provision in the end of every year.
Inventory depreciation provision accrued based on net realizable value
According to the inventory accounting policy, the Group carries out price decrease provision for
obsolete and unsalable inventories with higher cost than the net realizable value measurement
according to the lower of the cost and net realizable value. The Group will reevaluate if the
inventories are obsolete and unsalable, and if the net realizable value is lower than inventory cost in
the end of every year.
6. Taxes
6.1 Main taxes and tax rate
Taxes Tax basis Tax rate
VAT is levied by the output tax calculated by the taxable revenue as 17%, 6% (China), 19.6%
Value added tax
the tax base after deduction of eligible input VAT in this period. (France) and 21% (Spain)
The consumption tax is levied by the taxable revenue as the tax
Consumption tax 10%-20% (China)
base.
Business tax The business tax is levied by the taxable revenue as the tax base. 5% (China)
Urban maintenance and The urban maintenance and construction tax is levied by the actually
7% (China)
construction tax paid turnover tax as the tax base.
The corporate income tax is levied by the taxable income as the tax 25% (China), 33% (France)
Corporate income tax
base. and 28% (Spain)
6.2 Tax incentives
Ningxia Changyu Grape Growing Co., Ltd. (“Ningxia Growing”), a subsidiary of the Company, whose
principal activity is grape growing, is incorporated in Yongning County, Ningxia Hui Autonomous
Region. According to Article 27 of PRC Corporate Income Tax and Article 86 of PRC Corporate
Income Tax Measures for Implementation, it enjoys an exemption of corporate income tax related to
grape growing.
Xinjiang Tianzhu Wine Co., Ltd. (“Xinjiang Tianzhu”) and Xinjiang Chateau Changyu Baron Balboa
Co., Ltd. (“Shihezi Chateau”), the subsidiaries of the Company, are enterprises engaged in the
production and sales of bulk wine incorporated in Shihezi City, Xinjiang Uygur Autonomous Region.
In accordance with relevant regulations of the Notice on Relevant Issues of Taxes Policies for Deeply
Implementing the Western Development Strategy (Cai Shui [2011] No. 58), such enterprises enjoy the
preferential policy for the corporate income tax, and the preferential tax rate of the corporate income
tax is 15% from 2015 to 2020.
7. Notes to consolidated financial statement
7.1 Monetary capital
Unit: Yuan
Item Ending balance Beginning balance
Cash on hand 112,832 117,507
Bank deposit 1,433,123,482 1,240,607,797
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Other monetary capital 116,831,467 150,792,303
Total 1,550,067,781 1,391,517,607
Including: Total amount of funds
17,223,253 16,080,618
deposited abroad
As at June 30, 2017, the restricted bank deposit details are listed as follows:
Item Ending balance Beginning balance
Housing fund of the unit 2,748,410 2,711,926
Total 2,748,410 2,711,926
As at June 30, 2017, the details of other monetary funds are listed as follows:
Item Ending balance Beginning balance
Pledge of fixed deposits by Yantai
Changyu Wine Research,
46,100,000 46,100,000
Development and Manufacture Co.,
Ltd. (“R&D Company”)
Refundable deposits of bills payable 8,000,000 38,900,000
Refundable deposits of the letter of
60,580,850 25,694,735
credit
Account balance of Alipay 1,992,035 40,047,367
Guaranty money for the unit card 158,582 50,201
Total 116,831,467 150,792,303
As at June 30, 2017, the frozen amount in the account balance of Alipay was RMB 1,992,035 Yuan
(December 31, 2016: RMB 18,118,441 Yuan).
As at June 30, 2017, the monetary capital deposited abroad by the Group was RMB 17,223,253 Yuan
(December 31, 2016: RMB 16,080,618 Yuan).
As at June 30, 2017, the bank deposits of the Group including short-term fixed deposits ranging from
3 months to 1 year amounted to RMB 201,000,000 Yuan (December 31, 2016: RMB 3,000,000 Yuan),
with the interest rates ranging from 1.3%-1.95%.
7.2 Bills receivable
7.2.1 Classification of bills receivable
Unit: Yuan
Type Ending balance Beginning balance
Bank acceptance 378,804,230 210,470,027
Trade acceptance
Total 378,804,230 210,470,027
7.2.2 Bills receivable pledged by the Company at the end of period
Nil
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.2.3 Bills receivable endorsed or discounted by the Company at the end of period but
not yet matured as of the balance sheet date
Unit: Yuan
Amount terminating recognition at the end Amount not terminating recognition
Item
of period at the end of period
Bank acceptance 138,552,83
Trade acceptance
Total 138,552,83
7.2.4 Bills receivable reclassified as accounts receivable by the Company due to the
default of drawer at the end of period
Nil
7.3 Accounts receivable
7.3.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Bad debt
Book balance Book balance Bad debt provision
Type provision
Book value Book value
Amount Proportion Amount Accrued Amount Proportion Amount Accrued
proportion proportion
Accounts
receivable of
significant
single amount
70,335,893 42.1% 70,335,893 75,230,493 43.5% 75,230,493
and single
accrued bad
debt
provision
Accounts
receivable
accrued bad
debt
provision by
credit risk
features
Accounts
receivable of
insignificant
single amount
96,816,616 57.9% 96,816,616 97,832,135 56.5% 97,832,135
and single
accrued bad
debt
provision
Total 167,152,509 100% 167,152,509 173,062,628 100% 173,062,628
The credit term of accounts receivable is normally one month. Major customers can be granted a credit
term up to three months. The accounts receivable are free from interest.
As at June 30, 2017, the accounts receivable with ownership restrictions were RMB 29,248,895 Yuan
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
(December 31, 2016: RMB 30,732,944 Yuan). Please refer to Note 7.19 for the details.
7.3.2 Bad debt provision accrued, transferred back or received in this period
The bad debt provision accrued in this period was RMB 0 Yuan; and that transferred back or
received in this period was RMB 0 Yuan.
7.3.3 Accounts receivable actually cancelled after verification in this period
Nil
7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance
Relationship with the Percentage in total
Unit Amount Period
Company accounts receivable
Nonggongshang
Supermarket (Group) Co., Third party 11,144,490 Within 1 year 6.7%
Ltd.
Distribuidora
Third party 9,926,131 Within 1 year 5.9%
Internacional ( DIA)
Wal-mart (China)
Investment Co., Ltd.
Third party 8,649,179 Within 1 year 5.2%
Lianhua Supermarket
Holdings Co., Ltd.
Third party 8,599,554 Within 1 year 5.1%
Suguo Supermarket Co., Ltd. Third party 8,406,322 Within 1 year 5.0%
46,725,676 28.0%
Total -- --
7.3.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.3.6 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Advance payment
7.4.1 Advance payment listed by age
Unit: Yuan
Ending balance Beginning sum
Age
Amount Proportion Amount Proportion
Within 1 year 2,114,086 100% 2,175,606 100%
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
1-2 years
2-3 years
More than 3 years
Total 2,114,086 -- 2,175,606 --
7.4.2 Advance payment collected by the prepaid parties of top 5 units ranked by the
ending balance
Percentage
Relationship with in the total
Unit Amount Age Reason for unsettlement
the Group advance
payment%
Within 1
Chongqing Hoson Glass Co., Ltd. Third party 508,873 Failure to receive the goods 24.1%
year
Shandong Electric Power Group
Within 1 Prepaid electricity
Company Yantai Power Supply Third party 484,514 22.9%
year purchasing fund
Company
Jiangsu Dibang Construction Within 1
Third party 421,357 Prepaid repair charges 19.9%
Engineering Co., Ltd. year
Yantai Yanlai Electromechanical
Within 1
Equipment Production, Maintenance Third party 100,000 Prepaid repair charges 4.7%
year
and Supply Center
Within 1
Yantai Refrigeration Equipment Plant Third party 54,544 Prepaid repair charges 2.6%
year
1,569,288 74.2%
Total -- -- --
7.5 Interest receivable
7.5.1 Classification of interest receivable
Unit: Yuan
Item Ending balance Beginning balance
Fixed deposit 368,928 24,200
Entrusted loan
Bond investment
Total 368,928 24,200
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.6 Other accounts receivable
7.6.1 Other accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type
Amount Proportion Amount Accrued Book value Amount Proportion Amount Accrued Book value
proportion proportion
Other
accounts
receivable of
significant
single
5,460,380 33.5% 5,460,380 7,417,220 39.3% 7,417,220
amount and
single
accrued bad
debt
provision
Other
accounts
receivable
accrued bad
debt
provision by
credit risk
features
Other
accounts
receivable of
insignificant
single
10,850,802 66.5% 10,850,802 11,463,580 60.7% 11,463,580
amount and
single
accrued bad
debt
provision
Total 16,311,182 100% 16,311,182 18,880,800 100% 18,880,800
7.6.2 Bad debt provision accrued, transferred back or received in this period
The bad debt provision accrued in this period was RMB 0 Yuan; and that transferred back or
received in this period was RMB 0 Yuan.
7.6.3 Other accounts receivable actually cancelled after verification in this period
Nil
7.6.4 Other accounts listed by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Deposit and guaranty money receivable 11,867,142 13,191,851
39
2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Nature Ending book balance Beginning book balance
Imprest receivable 1,787,865 2,934,424
Consumption tax rebate 483,021 573,586
Other 2,173,154 2,180,939
Total 16,311,182 18,880,800
7.6.5 Other accounts receivable collected by the borrowers of top 5 units ranked by the
ending balance
Unit: Yuan
Percentage in total
Ending Ending balance of
Unit Nature Age ending balance of other
balance bad debt provision
accounts receivable
Construction
YEDA Finance Bureau 5,460,380 Within 2 years 33.4%
guarantee
YEDA Construction Industry Construction More than 3
2,151,300 13.2%
Association guarantee years
Foreign
Canada Oros Icewine Co., Ltd. investment 2,050,000 1-2 years 12.6%
receivable
Shandong Electric Power Group
Power supply More than 3
Company Yantai Power Supply 1,206,853 7.4%
guarantee years
Company
YEDA Thermochemistry Co.,
Deposit 500,000 Within 1 year 3.1%
Ltd.
Total -- 11,368,533 -- 69.7%
7.6.6 Other accounts receivable terminating recognition due to transfer of financial
assets
Nil
7.6.7 Other accounts receivable transferred and included in assets and liabilities
Nil
7.7 Inventories
7.7.1 Inventory classification
Unit: Yuan
Ending balance Beginning balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 40,739,604 40,739,604 72,011,633 72,011,633
Goods in process 1,453,452,930 1,453,452,930 1,253,218,347 1,253,218,347
Commodity stocks 545,683,575 15,573,180 530,110,395 944,806,516 21,426,756 923,379,760
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Total 2,039,876,109 15,573,180 2,024,302,929 2,270,036,496 21,426,756 2,248,609,740
7.7.2 Inventory depreciation provision
Unit: Yuan
Increase in this period Decrease in this period
Beginning
Item Transfer back or Ending balance
balance Accrual Other Other
write-off
Raw materials
Goods in process
Commodity stocks 21,426,756 5,853,575.63 15,573,180
Total 21,426,756 5,853,575.63 15,573,180
7.8 Those divided into assets held for sale
Unit: Yuan
Estimated disposal
Item Ending book value Fair value Estimated disposal time
expenses
Zhenshantun collective
2,000,197 16,282,224 3,878,560
apartment
Total 2,000,197 16,282,224 3,878,560 --
The Company has signed an irrevocable agreement for disposing the fixed assets, and the
contract amount is RMB 16,282,224 Yuan. The disposal is predicted to be completed in 2017.
7.9 Other current assets
Unit: Yuan
Item Ending balance Beginning balance
Prepaid corporate income tax 68,535,748 26,238,092
Deductible input tax 218,239,811 135,316,274
Rent to be amortized 6,518,738 7,967,876
Total 293,294,297 169,522,242
7.10 Available-for-sale financial assets
7.10.1 Particulars of available-for-sale financial assets
Unit: Yuan
Ending balance Beginning balance
Item Book Impairment Book Book Impairment Book
balance provision value balance provision value
Available-for-sale financial
instruments:
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Available-for-sale equity
10,463,800 10,000,000 463,800 10,340,263 10,000,000 340,263
instruments:
Fair value measurement
Cost measurement 10,463,800 10,000,000 463,800 10,340,263 10,000,000 340,263
Total 10,463,800 10,000,000 463,800 10,340,263 10,000,000 340,263
7.10.2 Available-for-sale financial assets by cost measurement at the end of period
Unit: Yuan
Book balance Impairment provision Cash
Shareholding
Increase Decrease Increase Decrease dividend
Invested unit ratio in the
Beginning in this in this Ending Beginning in this in this Ending in this
invested unit
period period period period period
Yantai
Dingtao
Construction
and 10,000,000 10,000,000 10,000,000 10,000,000 18%
Development
Co., Ltd.
(Note 1)
Other (Note Less than
340,263 123,537 463,800
2) 1%
Total 10,340,263 123,537 10,463,800 10,000,000 10,000,000 --
Note 1: The book balance of the equity investment made by the Company in Yantai Dingtao
Construction and Development Co., Ltd. was RMB 10,000,000 Yuan, and the provision for
impairment of RMB 10,000,000 Yuan has been withdrawn. The invested entity is an unlisted
company and its fair value can’t be measured reliably, so the Company shall measure such
available-for-sale financial assets by cost method.
Note 2: The Group holds less than 1% of the shares in such invested entities. These invested
entities are all unlisted companies and their fair value can’t be measured reliably, so the
Group shall measure such available-for-sale financial assets by cost method.
7.10.3 Changes of impairment of available-for-sale financial assets in the report period
Unit: Yuan
Classification of available-for-sale Available-for-sale equity Available-for-sale debt
Total
financial assets instruments instruments
Accrued impairment balance at the
10,000,000 10,000,000
beginning of period
Accrued amount of this period
Including: Transferred in from other
comprehensive income
Decrease in this period
Including: Fair value recovered and
transferred back after date
Accrued impairment balance at the
10,000,000 10,000,000
end of period
7.11 Fixed assets
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.11.1 Particulars of fixed assets
Unit: Yuan
Houses and
Item Machinery equipment Transportation tools Total
buildings
Ⅰ Original book value:
1. Beginning balance 3,956,177,208 1,969,135,575 29,329,141 5,954,641,924
2. Increase in this period 13,905,309 20,067,704 540,959 34,513,972
2.1 Acquisition 4,259,361 19,480,245 540,959 24,280,565
2.2 Transfer in from
9,645,948 587,459 10,233,407
construction in progress
2.3 Business merger
increase
2.4 Other
3. Decrease in this period 517,494 10,793,669 2,193,612 13,504,775
3.1 Disposal or
517,494 10,793,669 2,193,612 13,504,775
retirement
3.2 Other
4. Ending balance 3,969,565,023 1,978,409,610 27,676,488 5,975,651,121
Ⅱ Accumulated
depreciation
1. Beginning balance 410,161,600 840,158,129 21,134,702 1,271,454,431
2. Increase in this period 58,767,044 65,753,010 1,248,414 125,768,468
2.1 Accrual 58,767,044 65,753,010 1,248,414 125,768,468
2.2 Business merger
increase
2.3 Other
3. Decrease in this period 502,888 10,039,409 2,066,967 12,609,264
3.1 Disposal or
502,888 10,039,409 2,066,967 12,609,264
retirement
3.2 Other
4. Ending balance 468,425,756 895,871,730 20,316,149 1,384,613,635
Ⅲ Impairment provision
1. Beginning balance
2. Increase
2.1 Accrual
2.2 Other
3. Decrease
3.1 Disposal or
retirement
3.2 Other
4. Ending balance
Ⅳ Book value
1. Ending book value 3,501,139,267 1,082,537,880 7,360,339 4,591,037,486
2. Beginning book value 3,546,015,608 1,128,977,446 8,194,439 4,683,187,493
As at June 30, 2017, the net value of the fixed assets with ownership restrictions was RMB
69,535,906 Yuan. Please refer to Note 7.50 for the details.
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.11.2 Temporarily idle fixed assets
Nil
7.11.3 Fixed assets under finance leases
Nil
7.11.4 Fixed assets under operating lease
Nil
7.11.5 Fixed assets without property certificates
Unit: Yuan
Reason for not receiving the property
Item Book value
certificate
Industrial Production Center of the R&D Company 1,196,449,426 Under transaction
Dormitory Building, Main Building and Reception Building of
262,115,218 Under transaction
Chang’an Chateau
Workshop and Plant of Xinjiang Shihezi Chateau 253,470,055 Under transaction
European Town, Main Building and Service Building of Beijing
217,419,173 Under transaction
Chateau
Main Building of Yantai Changyu Tinlot Chateau 89,315,962 Under transaction
Provincial Office of Sales Company 21,537,995 Under transaction
Fermentation Workshop and Storage Workshop of Xinjiang Tianzhu 18,788,139 Under transaction
Office Building and Packaging Workshop of Icewine Chateau 9,660,096 Under transaction
Wine-making Workshop of Changyu (Jingyang) 4,244,130 Under transaction
Office Building, Laboratory Building and Workshop of
3,913,797 Under transaction
Fermentation Center
Finished Goods Warehouse and Workshop of Kylin Packaging 2,532,867 Under transaction
7.12 Construction in progress
7.12.1 Particulars of construction in progress
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Construction Project of Research,
Development & Manufacture Center 1,480,406,758 1,480,406,758 1,227,968,480 1,227,968,480
(“Changyu Wine City Complex”)
Construction Project of Ningxia
57,067,866 57,067,866 36,717,169 36,717,169
Chateau
Construction Project of Shihezi
29,704,077 29,704,077 30,600,684 30,600,684
Chateau
44
2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
Construction Project of Sales Company 39,933,379 39,933,379 26,011,600 26,011,600
Construction Project of Chang’an
42,579,064 42,579,064 10,346,598 10,346,598
Chateau
Construction Project of Tinlot Chateau 33,752,441 33,752,441 4,871,422 4,871,422
Reconstruction Project of AFIP
5,273,600 5,273,600 3,713,945 3,713,945
Tourism Plaza
Reconstruction Project of Jingyang
2,931,559 2,931,559 2,331,559 2,331,559
Fermentation Workshop
Plant Construction Project of Huanren
1,707,004 1,707,004 920,596 920,596
Winery
Construction and Reconstruction
268,929 268,929 500,000 500,000
Project of Joint-stock Company
Construction Projects of Other
3,672,763 3,672,763 2,299,684 2,299,684
Companies
Total 1,697,297,440 1,697,297,440 1,346,281,737 1,346,281,737
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2017 Semiannual Financial Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.12.2 Changes of major construction in progress in this period
Unit: Yuan
Proportion of Accumulative Including:
Transferred Capitalization
Beginning Other Ending accumulative Construction capitalization capitalization
Item Budget Increase to fixed ratio of interest Capital source
balance decrease balance project input in progress amount of amount of interest
assets in this period
budget interest in this period
Construction Project of
Research, Development & Loans form financial
Manufacture Center 4,505,780,000 1,227,968,480 252,438,278 1,480,406,758 67.8% 4,107,701 1,817,978 1.2% institutions and
“Changyu Wine City self-raised funds
Complex”)
Construction Project of
620,740,000 10,346,598 46,721,268 57,067,866 102.5% Self-raised funds
Chang’an Chateau
Construction Project of Sales
161,350,000 26,011,600 4,808,231 1,115,754 29,704,077 93.0% Self-raised funds
Company
Construction Project of
780,000,000 30,600,684 14,724,227 5,391,532 39,933,379 89.8% Self-raised funds
Shihezi Chateau
Construction Project of
414,150,000 36,717,169 10,018,016 4,156,121 42,579,064 97.4% Self-raised funds
Ningxia Chateau
Construction Project of Tinlot
192,400,000 4,871,422 28,881,019 33,752,441 110.7% Self-raised funds
Chateau
Plant Construction Project of
31,000,000 920,596 786,408 1,707,004 97.5% Self-raised funds
Huanren Winery
Total 6,705,420,000 1,337,436,549 358,377,447 10,663,407 1,685,150,589 -- -- 4,107,701 1,817,978 --
As at June 30, 2017, there was no indication for impairment of construction in process of the Group, so no provision was made.
46
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.13 Productive biological assets
7.13.1 Productive biological assets by cost measurement
Unit: Yuan
Item Plantation Total
Immature Mature
Ⅰ Original book value
1. Beginning balance 77,841,960 141,208,504 219,050,464
2. Increase in this period -65,331,472 69,081,966 3,750,494
2.1 Outsourcing 0
2.2 Self cultivation 2,987,011 763,483 3,750,494
2.3 The immature turn to the mature -68,318,483 68,318,483
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 12,510,488 210,290,470 222,800,958
Ⅱ Accumulated depreciation 12,510,488 210,290,470
1. Beginning balance 17,621,484 17,621,484
2. Increase in this period 7,155,162 7,155,162
2.1 Accrual 7,155,162 7,155,162
2.2 Other
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 24,776,646 24,776,646
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance
Ⅳ Book value
1. Ending book value 12,510,488 185,513,824 198,024,312
2. Beginning book value 77,841,960 123,587,020 201,428,980
As at June 30, 2017, no ownership of the biological assets was restricted.
As at June 30, 2017, there was no indication that biological assets may be impaired, so no provision
was made.
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.14 Intangible assets
7.14.1 Particulars of intangible assets
Unit: Yuan
Item Land use right Software use right Trademark Total
Ⅰ Original book value
1. Beginning balance 491,490,069 52,435,669 15,442,065 559,367,803
2. Increase in this period 4,140,000 895,888 99,552 5,135,440
2.1 Acquisition 4,140,000 895,888 5,035,888
2.2 Internal R&D
2.3 Business merger
increase
2.4 Other 99,552 99,552
3. Decrease in this period
3.1 Disposal - -
4. Ending balance 495,630,069 53,331,557 15,541,617- 564,503,243
Ⅱ Accumulated amortization
1. Beginning balance 56,803,430 12,548,283 6,201,010 75,552,723
2. Increase in this period 5,292,764 2,057,478 2,238,105 9,588,347
2.1 Accrual 5,292,764 2,057,478 2,238,105 9,588,347
2.2 Business merger
increase
3. Decrease in this period
3.1 Disposal -
4. Ending balance 62,096,194 14,605,761 8,439,115- 85,141,070-
Ⅲ Impairment provision
- -
1. Beginning balance
2. Increase in this period
2.1 Accrual -
3. Decrease in this period -
3.1 Disposal - -
4. Ending balance
Ⅳ Book value
-
- -
3. Ending book value 433,533,875 38,725,796 7,102,502 479,362,173
4. Beginning book value 434,686,639 39,887,386 9,241,055 483,815,080
As at June 30, 2017, the net value of the intangible assets with ownership restrictions was
48
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
RMB 143,892,516 Yuan. Please refer to Note 7.50 for the details.
7.14.2 Land use right of that not receiving the property certificate
Unit: Yuan
Item Book value Reason for not receiving the property certificate
A-49 Residential Area, YEDA 23,216,200 Under transaction
7.15 Goodwill
7.15.1 Original book value of goodwill
Unit: Yuan
Name of the invested Increase in this period Decrease in this period
Beginning
unit or matter forming Formed by business Ending balance
balance Other Disposal Other
goodwill merger
Etablissements Roullet
13,112,525 13,112,525
Fransac
Dicot Partners, S.L 92,391,901 92,391,901
Societe Civile
Argricole Du Chateau 15,761,440 15,761,440
De Mirefleurs
Total 121,265,866 121,265,866
7.16 Long-term unamortized expenses
Unit: Yuan
Increase in this Amortization in this
Item Beginning balance Other decrease Ending balance
period period
Land lease fees 57,846,986 719,453 57,127,533
Land acquisition
45,192,900 569,651 44,623,249
fees
Afforestation fees 54,460,971 2,564,214 51,896,757
Renovation costs 1,091,579 109,158 982,421
Other 3,613,793 36,571 1,259,413 2,390,951
Total 162,206,229 36,571 5,221,889 157,020,911
7.17 Deferred income tax assets/liabilities
7.17.1 Un-offset deferred income tax assets
Unit: Yuan
Ending Balance Beginning Balance
Item Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Asset impairment provision 25,573,180 6,393,295 31,426,756 7,856,689
Unrealized profits from inter-company
581,720,137 145,430,034 676,375,006 169,093,751
transactions
Deductible loss 201,373,978 50,343,495 176,273,380 44,068,345
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Ending Balance Beginning Balance
Item Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Unpaid bonus 121,373,855 30,343,464 154,895,784 38,723,946
Dismission welfare 12,102,449 3,025,612 13,115,948 3,278,987
Deferred income 108,512,201 24,308,890 112,939,126 25,230,521
Dealer’s rebate withdrawn in advance 30,739,192 7,684,798
Total 1,050,655,800 259,844,790 1,195,765,192 295,937,037
7.17.2 Un-offset deferred income tax liabilities
Unit: Yuan
Ending Balance Beginning Balance
Item Taxable Taxable
Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Assets appraisal appreciation in business merger
79,944,206 21,852,738 90,877,162 24,908,410
under non-common control
Changes in fair value of available-for-sale
financial assets
Total 79,944,206 21,852,738 90,877,162 24,908,410
7.17.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
Item Ending balance Beginning balance
Deductible loss 163,790,074 135,957,252
Total 163,790,074 135,957,252
7.17.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year Ending sum Beginning sum Remark
2019 7,311,273 7,311,273
2020 45,960,766 45,960,766
2021 82,685,213 82,685,213
2022 27,832,822
Total 163,790,074 135,957,252 --
7.18 Other non-current assets
Unit: Yuan
50
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Ending balance Beginning balance
Accounts receivable due to transfer of
17,590,912 17,352,239
biological assets
Prepaid investments 317,654,642
Total 335,245,554 17,352,239
7.19 Short-term loans
7.19.1 Classification of short-term loans
Unit: Yuan
Item Ending balance Beginning balance
Pledge loan
Mortgage loan 29,248,895 30,732,944
Guaranteed loan
Fiduciary loan 817,632,180 631,655,938
Total 846,881,075 662,388,882
As at June 30, 2017, the pledge loan referred to the factoring business for accounts receivable
of EUR 3,783,558 (equivalent to RMB 29,248,895 Yuan) that Hacienda y Vinedos Marques
del Atrio, S.L.U. (“Marques del Atrio”) transacted in such banks as Banco de Sabadell, S.A.
(December 31, 2016: RMB 30,732,944 Yuan). There was no loan borrowed by pledge of
fixed assets (December 31, 2016: RMB 0 Yuan).
7.20 Bills payable
Unit: Yuan
Type Ending balance Beginning balance
Trade acceptance
Bank acceptance 8,000,000 38,900,000
Total 8,000,000 38,900,000
7.21 Accounts payable
7.21.1 List of accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Within one year 396,891,500 544,128,280
From one year to two years 2,426,987 1,103,039
From two years to three years
Over three years
Total 399,318,487 545,231,319
7.21.2 Significant accounts payable aged more than one year
As at June 30, 2017, there were no significant accounts payable aged more than one year.
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.22 Advances from customers
7.22.1 List of advances from customers
Unit: Yuan
Item Ending sum Beginning sum
Within one year 312,184,976 419,382,071
From one year to two years 3,496,490 2,046,166
From two years to three years 2,031,043 108,748
Over three years 3,818,184 3,709,436
Total 321,530,693 425,246,421
7.22.2 Advances from customers of significant amount aged more than one year
As at June 30, 2017, the Company had no advances from customers of significant amount
aged more than one year.
7.23 Employee remunerations payable
7.23.1 List of employee remunerations payable
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Short-term remuneration 193,300,619 168,650,584 215,863,664 146,087,539
2. Post-employment welfare – defined
15,167 23,191,201 22,418,536 787,832
contribution plan
3. Dismission welfare 13,115,948 509,648 1,523,147 12,102,449
4.Other welfare due within one year
Total 206,431,734 192,351,433 239,805,347 158,977,820
7.23.2 List of short-term remunerations
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Salaries, bonuses, allowances
197,486,176 145,975,433 192,297,973 151,163,636
and subsidies
2. Staff welfare 622,735 8,323,393 8,728,238 217,890
3. Social insurance charges 257,249 7,150,754 7,349,717 58,286
Including: Medical insurance 257,249 6,051,156 6,250,119 58,286
Injury insurance 731,205 731,205
Maternity insurance 368,393 368,393
4. Housing fund 37,672 5,527,361 5,551,521 13,512
5. Union fee and staff education fee 2,593,009 1,673,643 1,936,215 2,330,437
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
6. Short-term compensated
absences
7. Short-term profit-sharing plan
8. Those divided into non-current
-7,696,222 -7,696,222
liabilities
Total 193,300,619 168,650,584 215,863,664 146,087,539
7.23.3 List of defined contribution plan
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment insurance 14,978 22,637,707 21,865,042 787,643
2. Unemployment insurance 189 553,494 553,494 189
3. Enterprise annuity payment
Total 15,167 23,191,201 22,418,536 787,832
7.23.4 Dismission welfare
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Compensation for server of labor
relation
2. Compensation for early retirement 13,115,948 509,648 1,523,147 12,102,449
Total 13,115,948 509,648 1,523,147 12,102,449
7.24 Taxes payable
Unit: Yuan
Item Ending balance Beginning balance
Value added tax 22,378,198 23,496,328
Consumption tax 14,378,343 30,361,471
Corporate income tax 26,129,549 69,388,730
Individual income tax 6,598,508 7,811,301
Urban maintenance and construction tax 2,503,846 4,248,115
Property tax 435,805 1,071,223
Urban land use tax 2,488,965 2,651,262
Other 2,199,905 5,014,170
Total 77,113,119 144,042,600
7.25 Dividends payable
Unit: Yuan
Item Ending balance Beginning balance
Ordinary stock dividends
53
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Preferred stock dividends/sustainable debt dividends
divided into equity instruments
Other 703,430
Total 703,430
7.26 Other payables
7.26.1 Other payables listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Distributor’s deposit payable 157,985,200 128,539,352
Equipment purchase and construction costs
101,721,932 77,261,072
payable
Transportation charges payable 12,110,825 36,690,764
Trademark use fees payable for Changyu Group
44,428,033 78,572,540
Company
Advertising expenses payable 221,724,475 79,414,075
Dealer’s rebate withdrawn in advance 30,739,192
Increased capital of minority shareholders
29,847,320 29,847,320
(Note)
Employee cash deposit 19,226,564 16,296,186
Supplier’s deposit payable 11,517,176 2,206,379
Contracting fees payable 37,079,817 31,011,929
Other 17,549,069 35,726,501
Total 653,190,411 546,305,310
7.26.2 Other significant accounts payable aged more than one year
Unit: Yuan
Item Ending balance Cause of unpayment or carry-over
Beijing Qinglang Ecological Agriculture The procedures for capital increase
23,983,072
Technology Development Co., Ltd. haven’t been completed
Beijing Qinglang Ecological Agriculture
13,766,549 The contracting fess haven’t been settled
Technology Development Co., Ltd.
The procedures for capital increase
Yantai De’an Investment Co., Ltd. 5,864,248
haven’t been completed
Yantai De’an Investment Co., Ltd. 5,716,524 The contracting fess haven’t been settled
Total 49,330,393 --
7.27 Non-current liabilities due within one year
Unit: Yuan
Item Ending balance Beginning balance
Long-term loans due within one
70,975,215 59,799,093
year
Long-term accounts payable due
36,000,000 12,000,000
within one year
Total 106,975,215 71,799,093
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.28 Other current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Deferred income 11,163,882 11,163,883
Total 11,163,882 11,163,883
7.29 Long-term loans
7.29.1 Classification of long-term loans
Unit: Yuan
Item Ending balance Beginning balance
Pledge loan
Mortgage loan 7,995,615 8,835,744
Guaranteed loan
Fiduciary loan 167,274,965 40,304,811
Total 175,270,580 49,140,555
Description of the classification of long-term loans:
Item Ending balance Long-term loan due within one Long-term loan due over one
year year
Pledge loan
Mortgage loan 10,778,415 2,782,800 7,995,615
Guaranteed loan
Fiduciary loan 235,467,380 68,192,415 167,274,965
Total 246,245,795 70,975,215 175,270,580
As at June 30, 2017, the mortgage loan referred to the loan of EUR 1,394,361.55 (equivalent
to RMB 10,778,415 Yuan) borrowed from Popular Espaol by Marques del Atrio which
mortgaged its fixed assets of EUR 3,812,130.38 (equivalent to RMB 29,467,767 Yuan)
(December 31, 2016: RMB 11,466,192 Yuan).
7.30 Long-term accounts payable
7.30.1 Long-term accounts payable listed by nature
Unit: Yuan
Item Ending balance Beginning balance
China Agricultural Development Key Construction Fund 269,000,000 293,000,000
In 2016, Agricultural Development Fund invested RMB 305,000,000 Yuan in the R&D
Company, accounting for 37.9% of the registered capital. According to the investment
agreement, it is agreed that Agricultural Development Fund will take back the investment
fund in ten years and obtain fixed income according to year, which is 1.2% of the remaining
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
principal. Except for the above fixed income, the Agricultural Development Fund shall not
enjoy other profits of the R&D Company or bear the losses of the R&D Company.
Accordingly, the investment of the Agricultural Development Fund in the R&D Company is
equity investment nominally, which is debt investment in deed. This Company shall include
the investment of the Agricultural Development Fund in long-term accounts payable
measured by amortized cost.
7.31 Deferred income
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance Forming reason
period period
Governmental
112,939,126 1,300,000 5,726,925 108,512,201
subsidy
Minus: Those
included in current 11,163,883 11,163,882 --
liabilities
Non-current
101,775,243 97,348,319 --
liabilities
Projects related to governmental subsidy
Unit: Yuan
Amount
Amount
of subsidy
included in
Beginning newly Other Ending
Item of liabilities non-operating Related to assets/income
balance increased changes balance
revenue in
in this
this period
period
Transferred fund of
Propaganda Department, 1,777,890 444,473 1,333,417 Related to assets
Miyun County Committee
Grape bulk wine brewing
6,174,300 717,942 5,456,358 Related to assets
project
Reward of investment in fixed
11,556,600 1,140,000 10,416,600 Related to assets
assets
Industrial revitalization and
technical transformation 18,486,000 711,000 17,775,000 Related to assets
project in Xinjiang
Industrial revitalization and
technical transformation 4,381,000 1,647,500 2,733,500 Related to assets
project in Ningxia
Subsidy payment for wine
376,000 376,000 Related to income
grapes
Modern agriculture-produced
259,200 259,200 Related to income
grape development subsidy
Tourism development fund
500,000 500,000 Related to assets
subsidy
Infrastructure construction fund 1,468,750 500,000 62,500 1,906,250 Related to assets
Construction project of
Liaonong Changyu (Huanren)
Pioneer Wine Co., Ltd. with the 4,000,000 4,000,000 Related to assets
annual output of 10,000 tons of
wine
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Amount
Amount
of subsidy
included in
Beginning newly Other Ending
Item of liabilities non-operating Related to assets/income
balance increased changes balance
revenue in
in this
this period
period
Fund for water pollution
133,733 300,000 56,801 376,932 Related to income
treatment project
Supporting fund for industrial
41,000,000 41,000,000 Related to assets
development
Subsidy for economic and
energy-saving technical 1,283,000 1,283,000 Related to assets
transformation project
Electronic traceability system
3,859,365 333,527 3,525,838 Related to assets
project of wine
Wine industry development
930,000 930,000 Related to assets
project
Peninsula blue economic zone
10,000,000 10,000,000 Related to assets
construction project
Scientific research fund
343,090 343,090 Related to income
subsidy of National 863 Plan
Technical transformation
project of information-based
4,060,000 290,000 3,770,000 Related to assets
system construction
engineering
Subsidy for project integrating
IT application with 28,800 28,800 Related to income
industrialization
Cross-border e-commerce
1,485,797 63,182 1,422,615 Related to income
project
Auxiliary coloration research
project of red wine phenolic 295,601 295,601 Related to income
substances
Grape base construction project 1,040,000 260,000 780,000 Related to assets
Total 112,939,126 1,300,000 5,726,925 108,512,201 --
Minus: Those included in
11,163,883 11,163,882
current liabilities
Non-current liabilities 101,775,243 97,348,319
7.32 Other non-current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Employee remunerations payable 7,696,222 7,696,222
Total 7,696,222 7,696,222
As at June 30, 2017, the employee remunerations payable referred to the job security deposit
deducted from the year-end bonus of the employees higher than sales manager of the
Company in proportion, which will be paid from 2018 to 2020 as predicted.
7.33 Share capital
Unit: Yuan
Beginning Increase or decrease (+,-) in this period Ending
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
balance Share balance
transferred
Newly issued Allocated
from Other Subtotal
shares shares
accumulation
fund
Total shares 685,464,000 685,464,000
7.34 Capital reserves
Unit: Yuan
Decrease in this
Item Beginning balance Increase in this period Ending balance
period
Capital premium (Share
560,038,853 560,038,853
capital premium)
Other capital reserves 5,916,588 5,916,588
Total 565,955,441 565,955,441
7.35 Other comprehensive income
Unit: Yuan
Amount incurred in this period
Minus: profit
Amount
or loss in this
Beginning incurred Minus: Attributable Attributable Ending
Item period
balance before income to parent to minority balance
transferred
income tax tax company shareholders
from other
in this expenses after tax after tax
comprehensive
period
income before
1. Other comprehensive income
not to be reclassified into profit
and loss later
Including: change in net liabilities
and net assets from recalculated
defined benefit plan
Share enjoyed in other
comprehensive income not to be
reclassified into profit and loss in
invested unit under equity law
2. Other comprehensive income to
be reclassified into profit and loss -5,259,014 1,767,741 1,458,809 308,932 -3,800,205
later
Including: share enjoyed in other
comprehensive income to be
reclassified into profit and loss in
invested unit under equity law
Profit and loss from
changes in fair value of financial
assets for sale
Profit and loss from
reclassification of held-to-maturity
investment into fair value of
financial assets for sale
Effective part of profit and
loss of cash-flow hedge
Difference in translation of -5,259,014 1,767,741 1,458,809 308,932 -3,800,205
Foreign Currency Financial
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Amount incurred in this period
Minus: profit
Amount
or loss in this
Beginning incurred Minus: Attributable Attributable Ending
Item period
balance before income to parent to minority balance
transferred
income tax tax company shareholders
from other
in this expenses after tax after tax
comprehensive
period
income before
Statement
Total other comprehensive income -5,259,014 1,767,741 1,458,809 308,932 -3,800,205
7.36 Surplus reserves
Unit: Yuan
Decrease in this
Item Beginning balance Increase in this period Ending balance
period
Legal surplus reserves 342,732,000 342,732,000
Free surplus reserves
Reserve fund
Enterprise expansion fund
Other
Total 342,732,000 342,732,000
7.37 Undistributed profit
Unit: Yuan
Item This period Prior period
Undistributed profit at the end of prior period before adjustment 6,620,118,562 5,980,390,074
Total Undistributed profit at the beginning of the period before adjustment
(increase listed with+ , and decrease listed with -)
Undistributed profit at the beginning of the period after adjustment 6,620,118,562 5,980,390,074
Plus: Net profit for owner of the parent company 670,069,054 982,460,488
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 342,732,000
Common dividend transferred to share capital
Undistributed profit at the end of period 7,290,187,616 6,620,118,562
7.38 Operating income and operating cost
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Income Cost Income Cost
Main business 2,761,797,479 921,629,225 2,748,285,416 899,973,878
Other business 5,300,718 4,124,908 4,747,383 2,760,226
Total 2,767,098,197 925,754,133 2,753,032,799 902,734,104
7.39 Taxes and surcharges
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 87,580,364 105,763,800
Urban maintenance and construction tax 30,288,028 24,721,309
Education surcharges 21,968,359 18,089,897
Building tax 9,993,265
Land use tax 5,092,473
Stamp duty 1,970,707
Business Tax 1,175,187
Other 3,580,802 3,331,599
Total 160,473,998 153,081,792
7.40 Selling expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Advertising promotion expenses 353,792,438 332,116,022
Employee remunerations 115,463,193 104,719,946
Transportation expenses 64,053,872 66,063,407
Trademark use fees 44,428,033 46,273,367
Storage and lease expenses 27,357,293 39,026,546
Depreciation expenses 19,740,726 18,364,965
Service charges 6,734,393 5,651,106
Travel expenses 10,036,717 11,904,193
Water, electricity and gas charges 3,572,499 3,929,596
Office & postage costs 2,479,541 2,485,039
Packing expenses 3,140,528 3,114,989
Public security & clean-keeping
2,532,418 1,883,752
expenses
Business entertainment expenses 1,190,071 761,988
Afforestation fees 1,342,117 1,571,035
Property management expenses 1,348,857 1,129,106
Other 11,523,030 11,742,177
Total 668,735,726 650,737,234
7.41 Management expenses
Unit: Yuan
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Amount incurred in this period Amount incurred in prior period
Employee remunerations 45,732,792 42,548,604
Depreciation expenses 28,996,760 21,005,970
Contracting expenses 10,086,436 9,241,885
Repair expenses 5,768,634 5,623,236
Office expenses 8,693,956 8,197,736
Amortization expenses 9,569,693 7,782,091
Afforestation fees 3,893,103 3,636,852
Rental expenses 5,095,023 4,259,474
Business entertainment expenses 2,562,180 2,639,867
Public security & clean-keeping
2,787,735 2,574,552
expenses
Travel expenses 2,650,716 2,312,625
Other 4,705,358 12,872,953
Total 130,542,386 122,695,845
7.42 Financial expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 15,042,038 15,830,699
Minus: Interest income 4,849,166 7,189,121
Plus: Commission charges 754,300 859,954
Exchange gain or loss 200,777 1,486,701
Total 11,147,949 10,988,233
7.43 Loss on impairment of assets
Item Amount incurred in this period Amount incurred in prior period
1. Loss on bad debts
2. Inventory falling price loss -5,853,576
3. Loss on impairment of available-for-sale
financial assets
4. Loss on impairment of held-to maturity
investment
5. Loss on impairment of long-term equity
investment
6. Loss on impairment of investment real estate
7. Loss on impairment of fixed assets
8. Loss on impairment of engineering materials
9. Loss on impairment of construction in progress
10. Loss on impairment of productive biological
assets
11. Loss on impairment of oil and gas assets
12. Loss on impairment of intangible assets
13. Loss on impairment of goodwill
14. Other
Total -5,853,576 0
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
7.44 Non-operating income
Unit: Yuan
Amount incurred in Amount incurred in Amount included in the current
Item
this period prior period non-recurring profits/losses
Total gains on disposal of non-current
156,600 94,567 156,600
assets
Including: Gains on disposal of fixed
156,600 94,567 156,600
assets
Gains on disposal of intangible
assets
Gains on debt recombination
Gains on exchange of non-monetary
assets
Grains on donations
Governmental subsidy 19,735,204 18,145,874 19,735,204
Other 3,412,401 3,693,085 3,412,401
Total 23,304,205 21,933,526 23,304,205
Governmental subsidies included in the current profit/loss:
Unit: Yuan
Amount incurred in Amount incurred in
Item of subsidy Related to assets/income
this period prior period
Funds to support major projects 3,520,914 3,567,401 Related to assets
Funds to support small and medium-sized
2,086,027 1,832,402 Related to assets
Enterprises
Tax returns 12,737,950 12,116,257 Related to income
Other 1,390,313 629,814 Related to income
Total 19,735,204 18,145,874 --
7.45 Non-operating expenses
Unit: Yuan
Amount incurred in Amount incurred in Amount included in the current
Item non-recurring profits/losses
this period prior period
Total loss on disposal of 651,671 110,052 651,671
non-current assets
Including: Loss on disposal of
651,671 110,052 651,671
fixed assets
Loss on disposal of intangible
assets
Loss on debt recombination
Loss on exchange of
non-monetary assets
Donation 15,000
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Fine, penalty and overdue fine
paid due to violation of laws and 170,997 165,589 170,997
administrative regulations
Other 15,571 53,135 15,571
Total 838,239 343,776 838,239
7.46 Income tax expenses
7.46.1 List of income tax expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior
period
Current income tax expenses 195,716,215 196,893,915
Deferred income tax expenses 33,036,575 41,821,566
Total 228,752,790 238,715,481
7.46.2 Adjustment process of accounting profit and income tax expenses
Unit: Yuan
Item Amount incurred in this period
Total profit 898,763,547
Income tax expenses calculated according to the legal/applicable tax rate 224,690,887
Influence of different tax rates applicable to subsidiary -4,533,247
Influence of income tax in the term before adjustment
Influence of nontaxable income
Influence of non-deductible costs, expenses and losses 1,636,945
Influence of deductible loss from use of unconfirmed deferred income tax assets in prior
period
Influence of deductible temporary difference or deductible loss of unconfirmed deferred
6,958,205
income tax assets in this period
Income tax expense 228,752,790
7.47 Other comprehensive income
See details in Note 7.35.
7.48 Items of cash flow statement
7.48.1 Other cash received related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Governmental subsidy income 1,570,329 506,015
Withdrawal of cash deposit for bills payable 30,900,000 21,870,000
Other 6,419,583 5,457,993
Total 38,889,912 27,834,008
7.48.2 Other cash paid related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 352,845,674 403,264,891
Administrative expenses 43,700,254 37,642,759
Refundable deposits 35,030,980
Other 940,870 1,595,101
Total 432,517,778 442,502,751
7.48.3 Other cash paid related to investment activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Prepaid investment fund 317,654,642
Total 317,654,642
7.48.4 Other cash received related to financial activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Government subsidies received related to
1,000,000.00
assets
Interest income from pledge of fixed
303,473.00
deposits by the R&D Company
Total 1,303,473.00
7.48.5 Other cash paid related to financial activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
R&D Company’ long-term loans pledged by
20,000,000
fixed-term deposits
Total 20,000,000
7.49 Supplementary information to cash flow statement
7.49.1 Supplementary information to cash flow statement
Unit: Yuan
Supplementary materials Amount incurred in this period Amount incurred in prior period
1. Cash flows from operating activities calculated by
-- --
adjusting the net profit:
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Supplementary materials Amount incurred in this period Amount incurred in prior period
Net profit 670,010,757 695,669,860
Plus: Provision for impairment of assets -5,853,576
Depreciation of fixed assets, oil-and-gas assets and
132,923,630 93,458,092
productive biological assets
Intangible assets amortization 9,588,347 6,945,803
Amortization of long term prepaid expenses 5,221,889 11,179,121
Losses on disposal of fixed assets, intangible assets and
495,071 15,486
other long-term assets (profit listed with “－”)
Losses on retirement of fixed assets (profit listed with
“－”)
Losses on fair value change (profit listed with “－”)
Financial costs (profit listed with “－”) 15,086,410 11,808,339
Investment losses (profit listed with “－”)
Decrease in deferred income tax assets (increase listed
36,092,247 42,610,501
with “-”)
Increase of deferred income tax liabilities (decrease
-3,055,672 -788,935
listed with “－”)
Decrease in inventories (increase listed with “-”) 230,160,387 413,879,818
Decrease in operating receivables (increase listed with
-345,259,383 -395,702,109
“-”)
Increase in operating payable (decrease listed with “-”) -325,049,788 -196,327,607
Other
Net cash flows from operating activities 420,360,319 682,748,369
2. Significant investment and financing activities not
-- --
involving cash deposit and withdrawal:
Debt transferred into assets
Convertible corporate bond due within 1 year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent: -- --
Ending balance of cash 1,229,487,903 1,643,935,054
Minus: Beginning balance of cash 1,256,942,304 1,092,241,661
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent -27,454,401 551,693,393
7.49.2 Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
1. Cash 1,229,487,903 1,643,935,054
Including: Cash on hand 112,832 189,184
Bank deposits on demand 1,229,375,071 1,643,745,870
Other monetary capital on demand
Due from central bank available for payment
Due from the industry
Inter-bank lending
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
2. Cash equivalents
Including: Bond investment due within three months
3. Balance of cash and cash equivalents at the end of
1,229,487,903 1,643,935,054
period
Including: Restricted use of parent company or
subsidiaries in the group
7.50 Assets with ownership or use right restrictions
Unit: Yuan
Item Ending book value Reason for restriction
Loan deposit, bill deposit, L/C deposit, frozen balance
Monetary capital 119,579,877 of Alipay, housing fund and guaranty money for
deposit in unit card
Accounts receivable 29,248,895 Pledge of short-term loans
Pledge of long-term loans and long-term accounts
Fixed assets 69,535,906
payable
Intangible assets 143,892,516 Pledge of long-term accounts payable
Total 362,257,194 --
7.51 Foreign currency monetary items
7.51.1 Foreign currency monetary items
Unit: Yuan
Item Ending foreign currency balance Translation exchange rate Ending converted RMB balance
Monetary capital -- -- 7,606,956
Including: USD 675,534 6.7744 4,576,338
EUR 249,323 7.7496 1,932,154
HKD 1,265,657 0.8679 1,098,464
Long-term loans due
-- -- 15,499,200
within one year
Including: USD
EUR 2,000,000 7.7496 15,499,200
HKD
7.51.2 Overseas operational entities
The currency adopted by the overseas subsidiaries of the Company according to the main
economic environment where the operation is located shall be chosen as the recording
currency. Atrio Group and Francs Champs Participations SAS (“Francs Champs”) both use
euro as the recording currency, and Indomita Chile uses peso as the recording currency. Atrio
Group, Francs Champs and Indomita Chile didn’t have foreign currency assets and liabilities
at the end of this period.
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
8. Changes in scope of consolidation
8.1 Changes in scope of consolidation due to other reasons
The new subsidiary company established in this period is listed as follows:
Full name of Registration and
Legal Business Investment
the invested establishment date Registered capital
representative nature amount
unit and place
January 18, 2017
Yantai
Yantai City,
Changyu Wine Zhou Hongjiang Sales RMB 5,000,000 Yuan
Shandong Province,
Sales Co., Ltd.
China
Indomita Wine WILFRED
April 6, 2017 USD
Company CHARLES LEIGH Trading USD 1,000,000
Santiago, Chile 40,110,000
Chile, SpA NIELSEN
9. Equity in other entities
9.1 Equity in the subsidiaries
9.1.1 Constitution of enterprise group
Proportion of
Business shareholding
Name of subsidiary Principal business location Registration place Acquisition mode
nature
Direct Indirect
Shihezi City, Xinjiang Acquired from a business
Shihezi City, Xinjiang Uygur Manufacturing
Xinjiang Tianzhu (a) Uygur Autonomous Region, 60% combination under
Autonomous Region, China industry
China non-common control
Acquired from a business
Francs Champs
Cognac, France Cognac, France Trading 100% combination under
Participations
non-common control
Acquired from a business
Mirefleurs Bordeaux, France Bordeaux, France Trading 100% combination under
non-common control
Acquired from a business
Marques del Atrio (b) Navarra, Spain Navarra, Spain Sales 75% combination under
non-common control
Beijing Changyu Wine Acquired by
Marketing Co., Ltd. Beijing City, China Beijing City, China Sales 100% establishment or
(“Beijing Marketing”) investment
Yantai Kylin Packaging Acquired by
Yantai City, Shandong Yantai City, Shandong Manufacturing
Co., Ltd. (“Kylin 100% establishment or
Province, China Province, China industry
Packaging”) investment
Yantai Chateau Acquired by
Yantai City, Shandong Yantai City, Shandong Manufacturing
Changyu-Castel Co., Ltd. 70% establishment or
Province, China Province, China industry
(“Chateau Changyu”) (c) investment
Changyu (Jingyang) Acquired by
Xianyang City, Shaanxi Xianyang City, Shaanxi Manufacturing
Pioneer Wine Co., Ltd. 90% 10% establishment or
Province, China Province, China industry
(“Jingyang Wine”) investment
Yantai Changyu Pioneer Acquired by
Yantai City, Shandong Yantai City, Shandong
Wine Sales Co., Ltd. Sales 100% establishment or
Province, China Province, China
(“Sales Company”) investment
Langfang Development
Acquired by
Zone Castel-Changyu Wine Langfang City, Hebei Langfang City, Hebei Province, Manufacturing
39% 10% establishment or
Co., Ltd. (“Langfang Province, China China industry
investment
Castel”) (d)
Changyu (Jingyang) Acquired by
Xianyang City, Shaanxi Xianyang City, Shaanxi
Pioneer Wine Sales Co., Sales 10% 90% establishment or
Province, China Province, China
Ltd. (“Jingyang Sales”) investment
Langfang Changyu Pioneer Acquired by
Langfang City, Hebei Langfang City, Hebei Province,
Wine Sales Co., Ltd. Sales 10% 90% establishment or
Province, China China
(“Langfang Sales”) investment
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business shareholding
Name of subsidiary Principal business location Registration place Acquisition mode
nature
Direct Indirect
Shanghai Changyu Wine Acquired by
Marketing Co., Ltd. Shanghai City, China Shanghai City, China Sales 30% 70% establishment or
(“Shanghai Marketing”) investment
Beijing Changyu AFIP
Eco-agriculture Acquired by
Miyun County, Beijing City, Miyun County, Beijing City,
Development Co., Ltd. Sales 100% establishment or
China China
(“Eco-agriculture investment
Development”)
Beijing Changyu AFIP Acquired by
Manufacturing
Wine Chateau Co., Ltd. Beijing City, China Beijing City, China 70% establishment or
industry
(“Beijing Chateau”) (e) investment
Acquired by
Yantai Changyu Wine Sales Yantai City, Shandong Yantai City, Shandong
Sales 90% 10% establishment or
Co., Ltd. ( “Wine Sales”) Province, China Province, China
investment
Yantai Changyu Pioneer Acquired by
Yantai City, Shandong Yantai City, Shandong
International Wine Co., Ltd. Sales 70% 30% establishment or
Province, China Province, China
(“Pioneer International”) investment
Hangzhou Changyu Wine Acquired by
Hangzhou City, Zhejiang Hangzhou City, Zhejiang
Sales Co., Ltd. (“Hangzhou Sales 100% establishment or
Province, China Province, China
Changyu”) investment
Acquired by
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui Planting
Ningxia Growing 100% establishment or
Autonomous Region, China Autonomous Region, China industry
investment
Huanren Changyu National Acquired by
Benxi City, Liaoning Benxi City, Liaoning Province,
Wine Sales Co., Ltd. Sales 100% establishment or
Province, China China
(“National Wine”) investment
Liaoning Changyu Icewine Acquired by
Benxi City, Liaoning Benxi City, Liaoning Province, Manufacturing
Chateau Co., Ltd. (“Icewine 51% establishment or
Province, China China industry
Chateau”) (f) investment
Yantai Development Zone
Acquired by
Changyu Trading Co., Ltd. Yantai City, Shandong Yantai City, Shandong
Sales 100% establishment or
(“Development Zone Province, China Province, China
investment
Trading”)
Shenzhen Changyu Wine Acquired by
Shenzhen City, Guangdong Shenzhen City, Guangdong
Marketing Co., Ltd. Sales 100% establishment or
Province, China Province, China
(“Shenzhen Marketing”) investment
Yantai Fushan District Acquired by
Yantai City, Shandong Yantai City, Shandong
Changyu Trading Co., Ltd. Sales 100% establishment or
Province, China Province, China
(“Fushan Trading”) investment
Beijing Changyu AFIP
Acquired by
International Conference Miyun County, Beijing City, Miyun County, Beijing City, Service
100% establishment or
Center Co., Ltd. China China industry
investment
(“Conference Center”)
Beijing Changyu AFIP Acquired by
Miyun County, Beijing City, Miyun County, Beijing City, Tourist
Tourism and Culture Co., 100% establishment or
China China industry
Ltd. (“AFIP Tourism”) investment
Changyu (Ningxia) Pioneer Acquired by
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui Manufacturing
Wine Co., Ltd. (“Ningxia 100% establishment or
Autonomous Region, China Autonomous Region, China industry
Wine”) investment
Yantai Changyu Tinlot Acquired by
Yantai City, Shandong Yantai City, Shandong Wholesale and
Chateau Co., Ltd. (“Tinlot 65% establishment or
Province, China Province, China retail
Chateau”) investment
Changyu (Qingtongxia) Qingtongxia City, Ningxia Acquired by
Qingtongxia City, Ningxia Hui
Wine Sales Co., Ltd. Hui Autonomous Region, Sales 35% establishment or
Autonomous Region, China
(“Qingtongxia Sales”) China investment
Shihezi City, Xinjiang Acquired by
Shihezi City, Xinjiang Uygur Manufacturing
Shihezi Chateau Uygur Autonomous Region, 100% establishment or
Autonomous Region, China industry
China investment
Chateau Changyu Moser Acquired by
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui Manufacturing
XV Ningxia Co., Ltd. 100% establishment or
Autonomous Region, China Autonomous Region, China industry
(“Ningxia Chateau”) investment
Chateau Changyu Rena Acquired by
Xianyang City, Shaanxi Xianyang City, Shaanxi Manufacturing
Shaanxi Co., Ltd. 100% establishment or
Province, China Province, China industry
(“Chang’an Chateau”) investment
R&D Company (g) Yantai City, Shandong Yantai City, Shandong Manufacturing 100% Acquired by
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business shareholding
Name of subsidiary Principal business location Registration place Acquisition mode
nature
Direct Indirect
Province, China Province, China industry establishment or
investment
Changyu (Huanren) Pioneer Acquired by
Benxi City, Liaoning Benxi City, Liaoning Province,
Wine Co., Ltd. (“Huanren Wine making 62% establishment or
Province, China China
Wine”) investment
Xinjiang Changyu Wine Shihezi City, Xinjiang Acquired by
Shihezi City, Xinjiang Uygur
Sales Co., Ltd. (“Xinjiang Uygur Autonomous Region, Sales 100% establishment or
Autonomous Region, China
Sales”) China investment
Xinjiang Changyu Pioneer Shihezi City, Xinjiang
Shihezi City, Xinjiang Uygur Manufacturing
Wine Co., Ltd. (“Xinjiang Uygur Autonomous Region, 100%
Autonomous Region, China industry
Wine”) China
Ningxia Changyu Trading Acquired by
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui
Co., Ltd. (“Ningxia Sales 100% establishment or
Autonomous Region, China Autonomous Region, China
Trading”) investment
Shaanxi Changyu Rena Acquired by
Xianyang City, Shaanxi Xianyang City, Shaanxi
Wine Sales Co., Ltd. Sales 100% establishment or
Province, China Province, China
(“Shaanxi Sales”) investment
Penglai Changyu Wine Acquired by
Penglai City, Shandong Penglai City, Shandong
Sales Co., Ltd. (“Penglai Sales 100% establishment or
Province, China Province, China
Wine”) investment
Laizhou Changyu Wine Acquired by
Laizhou City, Shandong Laizhou City, Shandong
Sales Co., Ltd. (“Laizhou Sales 100% establishment or
Province, China Province, China
Sales”) investment
Francs Champs Investment
Cognac, France Cognac, France 100%
Participations SAS trade
Lanzhou Changyu Wine Acquired by
Lanzhou City, Gansu Lanzhou City, Gansu Province,
Marketing Co., Ltd. Sales 100% establishment or
Province, China China
(“Lanzhou Marketing”) investment
Beijing Changyu Trading Acquired by
Co., Ltd. (“Beijing Beijing City, China Beijing City, China Sales 100% establishment or
Trading”) investment
Tianjin Changyu Pioneer Acquired by
Wine Sales Co., Ltd. Tianjin City, China Tianjin City, China Sales 100% establishment or
(“Tianjin Pioneer”) investment
Fuzhou Changyu Pioneer Acquired by
Fuzhou City, Fujian Fuzhou City, Fujian Province,
Wine Co., Ltd. (“Fuzhou Sales 100% establishment or
Province, China China
Pioneer”) investment
Nanjing Changyu Pioneer Acquired by
Nanjing City, Jiangsu Nanjing City, Jiangsu Province,
Wine Co., Ltd. (“Nanjing Sales 100% establishment or
Province, China China
Pioneer”) investment
Xianyang Changyu Pioneer Acquired by
Xianyang City, Shaanxi Xianyang City, Shaanxi
Wine Sales Co., Ltd. Sales 100% establishment or
Province, China Province, China
(“Xianyang Pioneer”) investment
Shenyang Changyu Pioneer Acquired by
Shenyang City, Liaoning Shenyang City, Liaoning
Wine Co., Ltd. (“Shenyang Sales 100% establishment or
Province, China Province, China
Pioneer”) investment
Jinan Changyu Pioneer Acquired by
Jinan City, Shandong Jinan City, Shandong Province,
Wine Co., Ltd. (“Jinan Sales 100% establishment or
Province, China China
Pioneer”) investment
Shanghai Changyu Pioneer Acquired by
Wine Co., Ltd. (“Shanghai Shanghai City, China Shanghai City, China Sales 100% establishment or
Pioneer”) investment
Fuzhou Changyu Pioneer Acquired by
Fuzhou City, Jiangxi Fuzhou City, Jiangxi Province,
Wine Co., Ltd. (“Fuzhou Sales 100% establishment or
Province, China China
Pioneer”) investment
Shijiazhuang Changyu
Acquired by
Pioneer Wine Sales Co., Shijiazhuang City, Hebei Shijiazhuang City, Hebei
Sales 100% establishment or
Ltd. (“Shijiazhuang Province, China Province, China
investment
Pioneer”)
Hangzhou Yuzefeng Acquired by
Hangzhou City, Zhejiang Hangzhou City, Zhejiang
Trading Co., Ltd. Sales 100% establishment or
Province, China Province, China
(“Hangzhou Yuzefeng”) investment
Acquired by
Jilin Changyu Pioneer Wine Changchun City, Jilin Changchun City, Jilin
Sales 100% establishment or
Co., Ltd. (“Jilin Pioneer”) Province, China Province, China
investment
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Proportion of
Business shareholding
Name of subsidiary Principal business location Registration place Acquisition mode
nature
Direct Indirect
Beijing Changyu Pioneer Acquired by
Wine Sales Co., Ltd. Beijing City, China Beijing City, China Sales 100% establishment or
(“Beijing Pioneer”) investment
Harbin Changyu Pioneer Acquired by
Harbin City, Heilongjiang Harbin City, Heilongjiang
Wine Sales Co., Ltd. Sales 100% establishment or
Province, China Province, China
(“Harbin Pioneer”) investment
Hunan Changyu Pioneer Acquired by
Changsha City, Hunan Changsha City, Hunan
Wine Co., Ltd. (“Hunan Sales 100% establishment or
Province, China Province, China
Pioneer”) investment
Yinchuan Changyu Pioneer Acquired by
Yinchuan City, Ningxia Hui Yinchuan City, Ningxia Hui
Wine Co., Ltd. (“Yinchuan Sales 100% establishment or
Autonomous Region, China Autonomous Region, China
Pioneer”) investment
Kunming Changyu Pioneer Acquired by
Kunming City, Yunnan Kunming City, Yunnan
Wine Co., Ltd. (“Kunming Sales 100% establishment or
Province, China Province, China
Pioneer”) investment
Chongqing Changyu Acquired by
Pioneer Wine Sales Co., Chongqing City, China Chongqing City, China Sales 100% establishment or
Ltd. (“Chongqing Pioneer”) investment
Zhengzhou Changyu Acquired by
Zhengzhou City, Henan Zhengzhou City, Henan
Pioneer Wine Co., Ltd. Sales 100% establishment or
Province, China Province, China
(“Zhengzhou Pioneer”) investment
Wuhan Changyu Pioneer Acquired by
Wuhan City, Hubei Wuhan City, Hubei Province,
Wine Co., Ltd. (“Wuhan Sales 100% establishment or
Province, China China
Pioneer”) investment
Taiyuan Changyu Pioneer Acquired by
Taiyuan City, Shanxi Taiyuan City, Shanxi Province,
Wine Co., Ltd. (“Taiyuan Sales 100% establishment or
Province, China China
Pioneer”) investment
Hohhot Changyu Pioneer Hohhot City, Inner Acquired by
Hohhot City, Inner Mongolia
Wine Co., Ltd. (“Hohhot Mongolia Autonomous Sales 100% establishment or
Autonomous Region , China
Pioneer”) Region , China investment
Chengdu Changyu Pioneer Acquired by
Chengdu City, Sichuan Chengdu City, Sichuan
Wine Co., Ltd. (“Chengdu Sales 100% establishment or
Province, China Province, China
Pioneer”) investment
Nanning Changyu Pioneer Nanning City, Guangxi Acquired by
Nanning City, Guangxi Zhuang
Wine Co., Ltd. (“Nanning Zhuang Autonomous Sales 100% establishment or
Autonomous Region, China
Pioneer”) Region, China investment
Lanzhou Changyu Pioneer Acquired by
Lanzhou City, Gansu Lanzhou City, Gansu Province,
Wine Co., Ltd. (“Lanzhou Sales 100% establishment or
Province, China China
Pioneer”) investment
Yantai Roullet-Fransac
Acquired by
Imported Wine Sales Co., Yantai City, Shandong Yantai City, Shandong
Sales 100% establishment or
Ltd. (“Yantai Province, China Province, China
investment
Roullet-Fransac”)
Hefei Changyu Pioneer Acquired by
Hefei City, Anhui Province, Hefei City, Anhui Province,
Wine Co., Ltd. (“Hefei Sales 100% establishment or
China China
Pioneer”) investment
Urumchi Changyu Pioneer Urumchi City, Xinjiang Acquired by
Urumchi City, Xinjiang Uygur
Wine Co., Ltd. (“Urumchi Uygur Autonomous Region, Sales 100% establishment or
Autonomous Region, China
Pioneer”) China investment
Guizhou Changyu Pioneer Acquired by
Guiyang City, Guizhou Guiyang City, Guizhou
Wine Co., Ltd. (“Guizhou Sales 100% establishment or
Province, China Province, China
Pioneer”) investment
Acquired by
Guangzhou City, Guangzhou City, Guangdong
Guangzhou Pioneer Sales 100% establishment or
Guangdong Province, China Province, China
investment
Acquired by
Yantai Changyu Wine Sales Yantai City, Shandong Yantai City, Shandong
Sales 100% establishment or
Co., Ltd. Province, China Province, China
investment
Indomita Wine Company Acquired by
Chile, SpA (“Indomita Santiago, Chile Santiago, Chile Trading 85% establishment or
Chile”) investment
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Explanation for difference between the proportion of shareholding and proportion of voting power
in the subsidiaries:
(a) Xinjiang Tianzhu is a subsidiary of the Company obtained by merger and acquisition,
whose 60% of the shares are held by the Company. The Company exercises full control over
the operation, investment and financing policies of Xinjiang Tianzhu by contract
arrangement.
(b) On September 12, 2016, Atrio Group completed the internal reorganization, and Marques
del Atrio absorbed and merged Atrio Group and its subsidiaries Enotec S.L., Hostaler I S.L.,
and Faustino Rivero Ulecia S.L. After the reorganization was completed, Marques del Atrio
becomes the only existing company.
(c) Changyu Chateau is a Sino-foreign joint venture established by the Company and a
foreign investor, whose 70% of the shares are held by the Company. The Company exercises
full control over the operation, investment and financing policies of Changyu Chateau by
contract arrangement. The contract arrangement will expire on December 31, 2022.
(d) Langfang Castel is a Sino-foreign joint venture established by the Company and a foreign
investor, whose 49% of the shares are held by the Company and its subsidiaries. The
Company exercises full control over the operation, investment and financing policies of
Langfang Castel by contract arrangement. The contract arrangement will expire on December
31, 2022.
(e) Beijing Chateau is a limited liability company established by the Company and a domestic
investor, whose 70% of the shares are held by the Company. The Company exercises full
control over the operation, investment and financing policies of Beijing Chateau by contract
arrangement. The contract arrangement will expire on September 2, 2019.
(f) Icewine Chateau is a Sino-foreign joint venture established by the Company and a foreign
investor, whose 51% of the shares are held by the Company. The Company exercises full
control over the operation, investment and financing policies of Icewine Chateau by contract
arrangement. The contract arrangement will expire on December 31, 2021.
(g) The R&D Company is a joint venture established by the Company and Agricultural
Development Fund, whose 62% of the shares were held by the Company on December 31,
2016. As stated in Note 6.29, Agricultural Development Fund invested RMB 305,000,000
Yuan in the R&D Company in 2016, accounting for 37.9% of the registered capital.
According to the investment agreement, it is agreed that Agricultural Development Fund will
take back the investment fund in ten years and obtain fixed income according to year, which
is 1.2% of the remaining principal. Except for the above fixed income, the Agricultural
Development Fund shall not enjoy other profits of the R&D Company or bear the losses of
the R&D Company. Accordingly, the investment of the Agricultural Development Fund in the
R&D Company is equity investment nominally, which is debt investment in deed. This
Company shall include the investment of the Agricultural Development Fund in long-term
accounts payable measured by amortized cost. The Company exercises full control over the
operation, investment and financing policies of the R&D Company by contract arrangement.
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
The contract arrangement will expire on May 22, 2026.
9.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
Dividend declared to be
Shareholding proportion Profit/loss attributable Balance of minority
distributed to minority
Name of subsidiary of minority to minority shareholders shareholder’s interest at
shareholders in this
shareholders in this period the end of period
period
Xinjiang Tianzhu 40% 56,093,912
Marques del Atrio 25% 999,164 703,430 30,995,051
Changyu Chateau 30% 12,365,016
Langfang Castel 51% 22,702,522
Beijing Chateau 30% 35,293,868
Icewine Chateau 49% 33,319,062
Explanation for difference between the proportion of shareholding and proportion of voting
power of the minority shareholders in the subsidiaries:
See details in Note 9.1.
9.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance
Name of
subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Xinjiang
97,483,520 73,823,603 171,307,123 42,113,184 5,336,114 47,449,297
Tianzhu
Changyu
131,258,800 115,227,528 246,486,329 166,841,868 166,841,868
Chateau
Langfang
26,252,091 19,508,777 45,760,868 9,423,027 9,423,027
Castel
Beijing
48,208,788 493,716,806 541,925,594 369,185,634 444,473 369,630,106
Chateau
Icewine
52,324,870 26,837,947 79,162,817 29,226,979 100,000 29,326,979
Chateau
Marques del
310,540,839 125,052,023 435,592,862 212,482,019 98,966,712 311,448,731
Atrio
Unit: Yuan
Beginning balance
Name of
subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Xinjiang 80,126,247 77,008,886 157,135,133 23,266,974 5,336,114 28,603,088
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Beginning balance
Name of
subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Tianzhu
Changyu
173,934,285 116,396,690 290,330,975 210,904,481 210,904,481
Chateau
Langfang
26,528,622 19,890,293 46,418,915 10,233,932 10,233,932
Castel
Beijing
88,294,417 502,368,404 590,662,821 431,222,472 888,945 432,111,417
Chateau
Icewine
38,239,653 27,545,615 65,785,268 13,756,944 100,000 13,856,944
Chateau
Marques del
333,455,551 131,921,130 465,376,681 272,843,155 69,572,335 342,415,490
Atrio
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Name of Total Total
subsidiary Operating Operating Operating Operating
Net profit comprehensive Net profit comprehensive
income cash flow income cash flow
income income
Xinjiang
115,904,168 22,453,715 22,453,715 -7,275,404 71,414,395 8,855,720 8,855,720 10,345,022
Tianzhu
Changyu
20,668,538 -106,018 -106,018 12,978,276 25,120,685 -1,835,054 -1,835,054 16,363,694
Chateau
Langfang
23,732,778 161,088 161,088 -137,422 23,893,566 1,141,604 1,141,604 8,003,926
Castel
Beijing
75,491,933 12,511,172 12,511,172 -37,040,335 96,780,881 22,140,264 22,140,264 19,711,484
Chateau
Icewine
16,724,881 -2,063,324 -2,063,324 -1,416,775 16,400,216 -3,220,773 -3,220,773 -2,213,030
Chateau
Marques
131,223,890 -233,187 3,996,659 -31,616,566 138,454,701 2,677,035 4,336,228 -10,296,603
del Atrio
10. Risks related to financial instruments
The main financial instruments of the Group include monetary capital, bills receivable, accounts
receivable, interest receivable, other receivables, available-for-sale financial assets, other non-current
assets, short-term loans, bills payable, accounts payable, other payables, interest payable, long-term
accounts payable and long-term loans. Please refer to Note 6 of each financial instrument for the
details. The risks related to these financial instruments and risk management policies adopted by the
Group to reduce these risks are shown as follows. The management of the Group manages and
monitors these risk exposures to ensure that the above-mentioned risks are controlled within a defined
scope.
The Group adopts sensitivity analysis techniques to analyze the possible influence of possible
reasonable changes of risk variables on the current profit and loss and shareholders’ equity. Since any
risk variable merely changes independently and the final influence of relevance between variables on
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
the change of certain risk variable will exert a great effect, the following content is carried out under
the hypothesis that each variable changes independently.
10.1 Risk management objective and policy
The risk management objective of the Group is to achieve proper balance between risks and benefits,
to minimize the negative influence of the risks on the business performance of the Group and to
maximize the shareholders’ benefit. Based on this risk management objective, the basic risk
management strategy of the Group is to determine and analyze various risks faced by the Group, to set
up proper risk tolerance bottom line and to carry out risk management, and to supervise various risks
timely and reliably to control the risks within a defined scope.
10.1.1 Market risk
① Foreign exchange risk
Foreign exchange risk refers to the risk that causes loss due to exchange rate fluctuation. The foreign
exchange risk borne by the Group is mainly relevant to EUR, HKD and USD. Except that the overseas
subsidiaries of the Group purchase and sale in EUR and except for loans of domestic subsidiaries in
EUR, other main business activities of the Group are priced and settled in RMB. As at June 30, 2017,
except that the assets and liabilities mentioned in the table below were the balance shown in EUR,
HKD and USD, other assets and liabilities of the Group were all the balance shown in RMB. The
foreign exchange risk caused by the assets and liabilities of such foreign currency balance may exert
an influence on the business performance of the Group.
Unit: Yuan
Item Ending balance Beginning balance
Monetary capital (EUR) 1,932,154 566,182
Monetary capital (HKD) 1,098,464 192
Monetary capital (USD) 4,576,338
Long-term loans due within one year (EUR) 15,499,200 29,227,200
The Group pays close attention to the influence of exchange rate fluctuation on the foreign exchange
risk of the Group. The Group has not taken any measures to avoid the foreign exchange risk at present.
Sensitivity analysis of foreign exchange risk
With the other variables unchanged, the pre-tax influence of possible reasonable exchange rate
fluctuation on current profit and loss and shareholders’ equity is shown as follows:
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Unit: Yuan
This period
Item Exchange rate fluctuation
Influence on profit of this period Influence on shareholders’ equity
HKD 5% appreciation against RMB 54,923 54,923
HKD 5% depreciation against RMB -54,923 -54,923
EUR 5% appreciation against RMB -678,352 -678,352
EUR 5% depreciation against RMB 678,352 678,352
USD 5% appreciation against RMB 228,817 228,817
USD 5% depreciation against RMB -228,817 -228,817
② Interest rate risk – risk of change in cash flow
The risk of change in cash flow of financial instruments caused by interest rate change of the Group is
mainly relevant to the monetary capital and long-term loan at floating interest rate. The policy of the
Group is to maintain the floating interest rate of these loans to eliminate the risk of change in fair
value of the interest rate.
Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the hypothesis that the change in market interest
rate influences the interest income or expense of financial instruments at variable rate.
The management of the Group thinks that the interest rate risk of deposit in bank borne by the Group
is not significant, and therefore the sensitivity analysis of interest rate of deposit in bank is not
disclosed here.
On the basis of the above-mentioned hypothesis, with the other variables unchanged, the pre-tax
influence of possible reasonable exchange rate fluctuation on current profit and loss and shareholders’
equity is as follows:
Unit: Yuan
This period
Item Interest rate change
Influence on profit of this period Influence on shareholders’ equity
Bank loan Increase by 50 BP -755,415 -755,415
Bank loan Decrease by 50 BP 755,415 755,415
10.1.2 Credit risk
As at June 30, 2017, the largest credit risk exposure possibly causing the financial loss of the
Group was mainly caused by the loss generated by the financial assets of the Group due to
failure of another party of the contract in fulfilling obligations.
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
To lower the credit risk, the Group only trades with the recognized and reputable third party.
In accordance with the policy of the Group, credit check shall be carried out for all customers
requiring to adopt form of credit to trade. In addition, the Group conducts continuous
monitoring on the balance of accounts receivable to ensure that the Group will not face major
risk of bad debts. For transactions not settled with recording currency of relevant business
units, unless the credit control department of the Group specially approves, the Group will not
provide credit trade terms. In addition, the Group audits the collection of each single
significant account receivable on each date of balance sheet to ensure that sufficient bad-debt
provision is accrued for accounts unable to be collected. Therefore, the management of the
Group thinks the credit risk borne by the Group is greatly reduced.
Since the Group only trades with the recognized and reputable third party, no collateral is
required. The credit risk is managed centrally according to the customer/counter-party,
geographic area and industry. As at June 30, 2017, 28.0% of accounts receivable of the Group
came from top five borrowers in accounts receivable of the Group (December 31, 2016:
26.3%). The Group holds no collateral or other credit enhancement for the balance of
accounts receivable.
10.1.3 Liquidity risk
When managing the liquidity risk, the Group reserves and monitors the cash and cash
equivalents the management considers sufficient to satisfy the operation need of the Group
and reduce the influence of fluctuation in cash flow. The management of the Group monitors
the use of bank loans and ensures to abide by the loan agreement.
10.1.4 Disclosure of fair value – fair value of financial assets and liabilities not measured
by fair value
The management of the Group thinks that, as at June 30, 2017, the book value of financial
assets and liabilities measured by amortized cost was close to the fair value thereof.
11. Related parties and related transactions
11.1 Particulars of the parent company of the Company
Proportion of Proportion of
Name of parent
Registration place Business nature Registered capital shareholding of the voting powers of
company
parent company in the parent company
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
the Company in the Company
Changyu Group Manufacturing
Yantai City 50,000,000 50.40% 50.40%
Company industry
From January to June 2017, there was no fluctuation in the registered capital of the parent
company and its share in equity interest and voting right.
11.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 9.
11.3 Particulars of other related parties
Name of other related parties Relationship between other related parties and the Company
Yantai Changyu Wine Culture Museum Co., Ltd. (“Wine
A company controlled by the same parent company
Culture Museum”)
Yantai Changyu Window of International Wine City Co. Ltd.
A company controlled by the same parent company
(“Window of Wine City”)
Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) A company controlled by the same parent company
Yantai Zhongya Medical Health Wine Co., Ltd. (“Zhongya
A company controlled by the same parent company
Medical”)
11.4 Related transactions
11.4.1 Related transactions of purchasing and selling goods and providing and receiving
services
List of purchasing goods/receiving services
Unit: Yuan
Amount incurred in this
Related parties Related transactions Amount incurred in prior period
period
God Horse Packing Purchasing goods 64,896,342 71,912,485
Zhongya Medical Purchasing goods 10,700,788 5,550,205
Wine Culture Museum Purchasing goods 6,319,776 4,636,495
Window of Wine City Purchasing goods 231,879 296,652
List of selling goods/providing services
Unit: Yuan
Amount incurred in this
Related parties Related transactions Amount incurred in prior period
period
Wine Culture Museum Selling goods 4,252,962 7,663,340
Window of Wine City Selling goods 5,642,914 5,002,597
Zhongya Medical Selling goods 1,956,658 2,057,616
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
God Horse Packing Selling goods 829,977 772,037
The price of transactions between the Group and the related parties are based on the
negotiated price.
11.4.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
11.4.3 Leasing with related parties
The Company as a leasee:
Unit: Yuan
Rent recognized in prior
Name of the lessor Type of leased assets Rent recognized in this period
period
Changyu Group Company Warehouse and office building 3,775,362 2,929,000
Pursuant to a lease contract dated January 1, 2017 signed between the Company and Changyu
Group Company, starting from January 1, 2017, the Company rents properties to Changyu
Group Company for operation purposes at a basic annual rental of RMB 1,464,500 Yuan, and
the expired date of the contract is December 31, 2021. From January to June 2017, the rental
expenses recognized by the Company to Changyu Group Company amounted to RMB
732,250 Yuan.
Pursuant to a lease contract dated January 1, 2017 signed between the Group and Changyu
Group Company, starting from January 1, 2017, the Company rents properties to Changyu
Group Company for operation purposes at a basic annual rental of RMB 4,393,500 Yuan, and
the expired date of the contract is December 31, 2021. From January to June 2017, the rental
expenses recognized by the Group to Changyu Group Company amounted to RMB 2,196,750
Yuan.
Pursuant to a lease contract dated January 1, 2016 signed between the Group and Changyu
Group Company, starting from January 1, 2016, the Group rents properties to Changyu Group
Company for operation purposes at a basic annual rental of RMB 1,692,724 Yuan, and the
expired date of the contract is December 31, 2020. From January to June 2017, the rental
expenses recognized by the Group to Changyu Group Company amounted to RMB 846,362
Yuan.
11.4.4 Guarantee with related parties
Nil
11.4.5 Inter-bank borrowing and lending of related parties
Nil
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
11.4.6 Asset transfer and debt recombination of related parties
Nil
11.4.7 Other related transactions
Item Note Amount incurred in this period Amount incurred in prior period
44,428,033 46,273,367
Trademark use (a)
fee
25,000 25,000
Patent fee (b)
The price of transactions between the Group and the related parties is based on the negotiated
price.
(a) Trademark royalty contract
Pursuant to a trademark royalty contract dated May 18, 1997 signed between the Company
and Changyu Group Company, starting from September 18, 1997, the Company may use
certain trademark of Changyu Group Company, which has been registered with the PRC
Trademark Office. An annual royalty fee at 2% of the Company’s annual specific sales is
payable to Changyu Group Company by the Company. The contract is effective until the
expiry of the registration of the trademark. From January to June 2017, the trademark royalty
fee paid to related parties by the Group accounted for 100% of the trademark royalty fee in
the Group.
(b) Patent implementation license contract
Pursuant to a patent implementation license contract dated May 18, 1997 signed between the
Company and Changyu Group Company, starting from September 18, 1997, the Company
may use the patented technologies of Changyu Group Company. The annual patent usage fee
payable by the Company to Changyu Group Company was RMB 50,000 Yuan. The contract
was expired on December 20, 2005. After the patent implementation license contract signed
on August 20, 2006 expires, the Company renewed the contract on August 20, 2016 for 10
year, which should pay the patent royalty of RMB 50,000 Yuan to Changyu Group Company
annually as before. From January to June 2017, the patent royalty payable by the Company to
Changyu Group Company amounted to RMB 25,000 Yuan.
From January to June 2017, the patent fees paid to related parties by the Group accounted for
100% of the patent fees in the Group.
79
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
11.5 Accounts receivable and payable of the related parties
11.5.1 Accounts receivable
Unit: Yuan
Ending balance Beginning balance
Item Related parties Book Bad debt Bad debt
Book balance
balance provision provision
Accounts receivable Zhongya Medical 4,719,638 3,913,997
Accounts receivable God Horse Packing 292,284 50,700
Accounts receivable Window of Wine City 908,898.20 1,833,273
Accounts receivable Wine Culture Museum 218,054 876,724
11.5.2 Accounts payable
Unit: Yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 26,294,501 59,058,023
Accounts payable Zhongya Medical 3,614,343 4,328,184
Accounts payable Wine Culture Museum 2,011,234 3,038,520
Accounts payable Window of Wine City 131,531 619,578
Other accounts payable Changyu Group Company 42,324,395 78,572,540
12. Commitment and contingency
12.1 Significant commitment
Unit: Yuan
Item Ending balance Beginning balance
Capital commitment 1,134,630,000 1,508,310,000
12.2 Contingency
By the balance sheet date, the Group and the Company didn’t have any undisclosed
contingency to be disclosed.
13. Matters after balance sheet
13.1 Important non-adjusting events
Nil
13.2 Profit distribution
Unit: Yuan
Profits or dividends to be distributed 342,732,000
Allocated profits or dividends approved to declare upon
342,732,000
discussion
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
According to the decision of the Shareholders’ Meeting dated June 15, 2017, based on the issued
capital stock of 685,464,000 shares in 2016, the Company allocated RMB 5 Yuan in cash (including
tax) for every 10 shares to all shareholders with the total cash dividends of RMB 342,732,000 Yuan.
Such cash dividends were distributed on July 11, 2017.
14. Other important matters
Nil
15. Notes on major items in financial statements of the parent company
15.1 Accounts receivable
15.1.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type
Accrued Book value Accrued Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts receivable of
significant single amount
and single accrued bad
debt provision
Accounts receivable
accrued bad debt
provision by credit risk
features
Accounts receivable of
insignificant single
amount and single 1,838,244 100% 1,838,244 3,326,683 100% 3,326,683
accrued bad debt
provision
Total 1,838,244 100% 1,838,244 3,326,683 100% 3,326,683
15.1.2 Bad debt provision accrued, received or transferred back in this period
The bad debt provision accrued in this period was RMB 0 Yuan; and that received or
transferred back in this period was RMB 0 Yuan.
15.1.3 Accounts receivable actually canceled after verification in this period
Nil
81
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
15.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage in
Relationship with
Unit Amount Age total accounts
the Company
receivable (%)
Yantai Zhongya Medical Health Wine Other related party
1,516,026 82.5%
Co., Ltd. (merged) of the Company
Yantai Huibao Artware Manufacturing
Third party 322,218 17.5%
Co., Ltd.
Total 1,838,244 100.0%
15.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
15.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
15.2 Other accounts receivable
15.2.1 Other accounts receivable disclosed by type
Ending balance Beginning balance
Book balance Bad debt provision Book value Book balance Bad debt provision Book value
Type
Accrued Accrued
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other accounts
receivable of
significant single
3,529,544,186 99.7% 3,529,544,186 3,572,802,092 99.7% 3,572,802,092
amount and single
accrued bad debt
provision
Other accounts
receivable
accrued bad debt
provision by
credit risk features
Other accounts
receivable of
10,166,247 0.3% 10,166,247 9,730,770 0.3% 9,730,770
insignificant
single amount and
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
single accrued bad
debt provision
Total 3,539,710,433 100% 3,539,710,433 3,582,532,862 100% 3,582,532,862
15.2.2 Bad debt provision accrued, received or transferred back in this period
The bad debt provision accrued in this period was RMB 0 Yuan; and that received or
transferred back in this period was RMB 0 Yuan.
15.2.3 Other accounts receivable classified by nature
Unit: Yuan
Nature of fund Ending book balance Beginning book balance
Accounts receivable of subsidiaries 3,538,441,877 3,580,805,532
Deposit and guaranty money receivable 8,000
Other 1,268,556 1,719,330
Total 3,539,710,433 3,582,532,862
15.2.4 Other accounts receivable collected by the borrower of top 5 units ranked by the
ending balance
Unit: Yuan
Percentage in the
Ending balance
Nature of total ending
Unit Ending balance Age of bad debt
fund balance of other
provision
accounts receivable
Internal
Chang’an Chateau incomings 755,392,258 Within 2 years 21.3%
and outgoings
Internal
Sales Company incomings 618,992,851 Within 2 years 17.5%
and outgoings
Internal
Ningxia Chateau incomings 439,733,913 Within 2 years 12.4%
and outgoings
Internal
R&D Company incomings 418,182,216 Within 2 years 11.8%
and outgoings
Internal
Beijing Chateau incomings 300,371,955 Within 2 years 8.5%
and outgoings
Total -- 2,532,673,193 -- 71.5%
15.2.5 Accounts receivable related to governmental subsidy
Nil
15.2.6 Other accounts receivable derecognized due to transfer of financial assets
Nil
15.2.7 Other accounts receivable transferred and included in assets and liabilities
Nil
83
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
15.3 Long-term equity investment
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment in
2,108,589,655 2,108,589,655 1,834,341,541 1,834,341,541
subsidiaries
Investment in associated
enterprises and joint
ventures
Total 2,108,589,655 2,108,589,655 1,834,341,541 1,834,341,541
15.3.1 Investment in subsidiaries
Unit: Yuan
Provision for Ending balance
Beginning Increase in this Decrease in this
Invested unit Ending balance impairment in of impairment
balance period period
this period provision
Xinjiang Tianzhu (a) 60,000,000 60,000,000
Kylin Packaging 23,176,063 23,176,063
Changyu Chateau
28,968,100 28,968,100
(a)
Pioneer
3,500,000 3,500,000
International (b)
Ningxia Growing 1,000,000 1,000,000
National Wine 2,000,000 2,000,000
Icewine Chateau (a) 30,440,500 30,440,500
Beijing Chateau (a) 77,000,000 77,000,000
Sales Company 7,200,000 7,200,000
Langfang Sales (b) 100,000 100,000
Langfang Castel (a) 19,835,730 19,835,730
Wine Sales 4,500,000 4,500,000
Shanghai Marketing
300,000 300,000
(b)
Beijing Marketing 850,000 850,000
Jingyang Sales (b) 100,000 100,000
Jingyang Wine (b) 900,000 900,000
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Provision for Ending balance
Beginning Increase in this Decrease in this
Invested unit Ending balance impairment in of impairment
balance period period
this period provision
Ningxia Wine 1,000,000 1,000,000
Ningxia Chateau 2,000,000 2,000,000
Tinlot Chateau (b) 80,000,000 80,000,000
Shihezi Chateau 550,000,000 550,000,000
Chang’an Chateau 20,000,000 20,000,000
R&D Company (a) 500,000,000 500,000,000
Huanren Wine 11,000,000 11,000,000
Francs Champs 220,320,604 220,320,604
Marques del Atrio 190,150,544 190,150,544
Indomita Chile 274,248,114 274,248,114
Total 1,834,341,541 274,248,114 2,108,589,655
15.4 Operating income and operating cost
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 445,339,324 387,600,176 648,652,597 495,598,413
Other business 386,481,179 350,350,202 6,646,403 5,714,186
Total 831,820,503 737,950,378 655,299,000 501,312,599
15.5 Investment income
Unit: Yuan
Amount incurred in this
Item Amount incurred in prior period
period
Income from long-term equity investment by cost method 66,127,980 683,891,453
Income from long-term equity investment by equity method
Investment income from disposal of long-term equity
investment
Investment income of the financial assets measured at their
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2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
fair values and the variation of which is recorded into the
current profit and loss during the holding period
Investment income gained from disposal of the financial
assets measured at their fair values and the variation of which
is recorded into the current profit and loss
Investment income of held-to-maturity investment during the
holding period
Investment income of financial assets held for sale during the
holding period
Investment income gained from disposal of financial assets
held for sale
Gains generated from the remaining equity remeasured as per
fair value after the loss of control
Total 66,127,980 683,891,453
16. Supplementary materials
16.1 List of non-current profits/losses in this period
Unit: Yuan
Item Amount Remark
Profits/losses on disposal of non-current assets -495,071
Tax return, deduction and exemption approved beyond the
12,737,950
authority or without formal approval document
Governmental subsidy included in the current profits/losses
(excluding those closely related to the enterprise business and
6,997,254
enjoyed in accordance with the unified standard quota or
ration of the state)
Payment for use of funds by non-financial enterprises included
in the current profits/losses
Income obtained when the investment cost obtained by the
enterprise from subsidiaries, joint-run business and joint
venture is less than the fair value of the net identifiable assets
obtained from the invested units when the investment is made
Profits/losses on exchange of non-monetary assets
Profits/losses on entrusting other people to make investment or
manage assets
86
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
Item Amount Remark
Asset impairment provision accrued due to force majeure such
as natural disaster
Profits/losses on debt restructuring
Enterprise reorganization expenses such as staffing
expenditure and integration expenses, etc.
Profits/losses on those beyond the fair value generated from
transactions with unfair transaction price
Current net profits/losses on subsidiaries acquired from a
business combination under common control from the
beginning to the consolidation date
Profits/losses on contingencies irrelated to the normal business
of the Company
Profits/losses on changes of fair value of financial assets and
liabilities held for trading, and investment income from
disposal of financial assets and liabilities held for trading and
financial assets held for sale, excluding effective hedging
operations relevant to the normal business of the Company
Returns of provision for impairment of accounts receivable
with single impairment test
Profits/losses on external entrusted loans
Profits/losses on fair value changes of investment real estate
with fair value mode for follow-up measurement
Influence of the one-time adjustment of the current
profits/losses in accordance with tax and accounting laws and
regulations on the current profits/losses
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the
3,225,833
above items
Other profits/losses conforming to the definition of
non-current profits/losses
Minus: Influenced amount of income tax 5,303,287
Influenced amount of minority shareholders’ equity
Total 17,162,679 --
87
2016 Semiannual Report of Yantai Changyu Pioneer Wine Co., Ltd.
16.2 Return on net assets and earnings per share
Earnings per share
Weighted average return on
Profit incurred in this period Basic EPS Diluted EPS
net assets
(Yuan/Share) (Yuan/Share)
Net profit attributable to common
7.84% 0.98 0.98
shareholders of the Company
Net profit attributable to common
shareholders of the Company deducting 7.64% 0.95 0.95
non-incidental profits/losses
16.3 Accounting data difference under domestic and foreign accounting standard
16.3.1 Net profits & net assets difference disclosed in the financial report according to
the international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits Net assets
Amount incurred in Amount incurred in prior
Ending balance Beginning balance
this period period
In accordance with the
670,069,054 695,021,847 8,880,538,852 8,209,010,989
Chinese accounting standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 670,069,054 695,021,847 8,880,538,852 8,209,010,989
standard
88
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