Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Yantai Changyu Pioneer Wine Co., Ltd.
August 21, 2026
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Table of Contents
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
I. Important Notice, Table of Contents and Definition
The board of directors, directors and senior executives of the Company guarantee the
truthfulness, accuracy and completeness of the contents contained in the semi-annual report
with no false records, misleading statements or significant omissions, and undertake
individual and joint legal liabilities.
Mr. Hongjiang ZHOU (Person in charge of the Company) and Ms. Cuimei GUO (Person in
charge of accounting work, Person in charge of accounting organ & Accountant in charge)
assure the truthfulness, accuracy and completeness of the financial report in the semi-annual
report.
Except for the following directors, other directors attended this board meeting for reviewing
this semi-annual report in person.
Name of director not attending Position of director not attending Reason of not attending
Name of entrustee
the meeting personally the meeting personally the meeting personally
Yan XU Independent Director On a business trip Zhuquan WANG
Marco Giovanni Ferrari Director On a business trip Claudio Michele d'Agostino
Forward-looking statements such as future plans and development strategies covered in this
report do not constitute a substantial commitment of the Company to investors. Investors are
advised to pay attention to investment risks.
Regarding significant risks that the Company may face during the business process, please
refer to “10. Risks and response measures” in “III Discussion and Analysis of Management
Team” in this report. Investors are suggested to read carefully and pay attention to investment
risks.
The Company has no plan to distribute cash dividends and bonus shares and capital reserve
will not be transferred to equity.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Reference Documents
(1) The original of 2026 Semi-annual Report autographed by the Chairman.
(2) The Financial Statements autographed and sealed by the Chairman, Chief Accountant and
Accountants in Charge.
(3) The Prospectus and Public Offering Announcement for Stock B in 1997; The Prospectus
and The Shares' Change & Public Offering Announcement for Stock A in 2000.
(4) The originals of all documents and announcements that the Company made public during
the report period in the newspapers designated by China Securities Regulatory Commission.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Definition
Definition Item Refers to Definition Content
Company/The Company Refers to Yantai Changyu Pioneer Wine Co., Ltd.
Changyu Group/Controlling Shareholder Refers to Yantai Changyu Group Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
KPMG Huazhen Refers to KPMG Huazhen LLP (Limited Liability Partnership)
Deloitte Touche Tohmatsu CPA Refers to Deloitte Touche Tohmatsu Certified Public Accountants LLP
CNY Refers to Chinese Yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
II. Brief Introduction for the Company and Main Financial Indicators
Stock Abbreviation Changyu A, Changyu B Stock Code 000869，200869
Stock Abbreviation after Alteration —
Place of Stock Listing Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese Name 张裕
Legal Name in English YANTAI CHANGYU PIONEER WINE COMPANY LIMITED
Abbreviation of English Name CHANGYU
Legal Representative Hongjiang ZHOU
Secretary of the Board of Directors Authorized Representative of Securities Affairs
Name Jianxun JIANG Tingguo LI
Address 56 Dama Road, Yantai, Shandong, China 56 Dama Road, Yantai, Shandong, China
Tel. 0086-535-6602761 0086-535-6633656
Fax. 0086-535-6633639 0086-535-6633639
E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn
Whether there is any change in the Company's registered address, office address,
corresponding postcode, website address and email address during the report period
□Applicable Inapplicable
There is no change in the Company's registered address, office address, corresponding
postcode, website address and email address during the report period. Please refer to 2025
Annual Report for detailed information.
Whether there is any change in information disclosure and filing location during the report
period
□Applicable Inapplicable
There is no change in the name of the newspaper for information disclosure, the address of
the website designated by the China Securities Regulatory Commission for publishing the
semi-annual report, and the filing location of the Company's semi-annual report selected by
the Company during the report period. Please refer to 2025 Annual Report for detailed
information.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Whether there is any change in other relevant information during the report period
□Applicable Inapplicable
Whether the Company needs to retrospectively adjust or restate the accounting data of
previous fiscal years.
Yes No
During the report In the same period More or less than the same
Item
period of last year period of last year (%)
Operating revenue (CNY) 1,572,704,753 1,470,576,177 6.94%
Net profit attributed to shareholders of the listed
company (CNY)
Net profit attributed to shareholders of the listed
company after deducting non-recurring profits 132,958,779 172,159,827 -22.77%
and losses (CNY)
Net cash flows from operating activities (CNY) 418,235,893 239,421,128 74.69%
Basic earnings per share (CNY/share) 0.21 0.28 -25%
Diluted earnings per share (CNY/share) 0.21 0.28 -25%
Weighted average return on equity 1.35% 1.73% -0.38%
At the end of this At the end of last More or less than the end of
Item
report period year last year (%)
Total assets (CNY) 11,883,028,631 12,050,601,981 -1.39%
Net Assets attributed to shareholders of the
listed company (CNY)
accounting standards
both international accounting standards and PRC accounting standard
□Applicable Inapplicable
There are no differences for net profit and net assets in the financial report disclosed
according to both international accounting standards and PRC accounting standards during
the report period.
both foreign accounting standards and PRC accounting standards
□Applicable Inapplicable
There are no differences of net profit and net asset in the financial report disclosed according
to both foreign accounting standards and PRC accounting standards during the report period.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Applicable Inapplicable
Unit：CNY
Item Amount Explanation
Profits and losses on disposal of non-current assets (including the write-off part of the
provision for asset impairment has been made)
Government grants included in the current profits and losses(except for those recurring
government grants that are closely related to the entity's operation, in line with related 8,354,311 -
regulations and have proper basis of calculation)
Other non-operating income and expenditure besides above-mentioned items 2,420,717 -
Less: Amount affected by income tax 2,592,122 -
Amount affected by minority equity (after tax) 664,846 -
Total 7,557,026 -
Specific situation of other gains and losses projects conforming to the definition of
non-recurring profit and loss
□Applicable Inapplicable
There does not exist specific situation of other profit and loss items conforming to the
definition of non-recurring profit and loss.
Explanation for regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company's Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
□Applicable Inapplicable
There is no situation regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company's Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
III. Discussion and Analysis of Management Team
During the report period, the Company's main business was production and operation of wine
and brandy.
The Company need to comply with the disclosure requirements of “Food and Liquor
Manufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
During the report period, the Company's main business was production and operation of wine
and brandy, thus providing domestic and foreign consumers with healthy and fashionable
alcoholic drinks. Compared with earlier stage, there were no significant changes happened to
the Company's main business. The wine industry that the Company involved in was still in
growth stage. Being affected by many factors in recent years, the competition in domestic
wine market was fierce. However, seen from the long term, the Company believes that the
existing consumption concept might change with the increase of people's income level and
their pursuit of a relaxed, romantic and healthy lifestyle. More domestic wine would be drunk
by people, and wine would enter more and more household consumption. The situation of
current low average consumption of domestic wine would gradually improve. The Company
was at the forefront in the domestic wine market and was significantly ahead of major
domestic competitors.
Food Food production
Producer name Obtaining time Obtaining method
category license number
Yantai Changyu Pioneer Wine Co., Approval from
Alcohol 2021.06.01 SC11537060100050
Ltd. government authority
Beijing Chateau Changyu AFIP Approval from
Alcohol 2022.08.22 SC11511280920745
Global Co., Ltd. government authority
Liaoning Changyu Golden Icewine Approval from
Alcohol 2021.03.25 SC11521052200370
Valley Co., Ltd. government authority
Ningxia Changyu Longyu Estate Approval from
Alcohol 2018.01.25 SC11564010500657
Co., Ltd. government authority
Xinjiang Chateau Changyu Baron Approval from
Alcohol 2017.08.25 SC11565900100392
Balboa Co., Ltd. government authority
Yantai Chateau Changyu-Castel Alcohol 2021.06.08 Approval from SC11537063600172
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Co., Ltd. government authority
Shaanxi Changyu Chateau Longue Approval from
Alcohol 2020.10.19 SC11561040400532
Chanson Co., Ltd. government authority
Yantai Chateau Koya Brandy Co., Approval from
Alcohol 2021.01.11 SC11537063601165
Ltd. government authority
During the report period, there did not exist the trademark ownership dispute, food quality
issue or food safety incident etc. that had a significant impact on the Company.
Brand operation
The Company's products were divided into two series: wine and brandy. For wine, main
brands included Changyu, Longyu, Noble Dragon, AFIP, Kilikanoon, Golden Icewine Valley,
Longue Chanson, Baron Balboa, Donelly, Long Tailed Cat, Commander Bear, Grappie,
ATRIO, IWCC, Vermouth and so on. For Brandy, main brands included Koya, Liquan,
Mminni, Pagese, Unicorn, Roullet Fransac and so on.
Major sales mode
The Company's main sales mode was the distribution mode, and main sales channel was
offline sales, that is, the Company's products were distributed to sales terminals through
approximately 5000 distributors at home and abroad and ultimately provided to consumers.
Distribution mode
Applicable Inapplicable
① Situation of change in the number of distributors is shown as follows.
At the beginning of Increased number during At the end of the
Region
the report period the report period report period
Eastern China 2290 62 2352
South China 581 4 585
Central China 381 -8 373
North China 323 -5 318
Northwest China 157 -8 149
Southwest China 420 3 423
Northeast China 280 4 284
HongKong, Macao,Taiwan China and overseas 796 110 906
Total 5228 162 5390
② Sales information of the Company’s top 5 distributors during the report period
No. Customer name Sales amount (CNY） Proportion in total sales（%）
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Total -- 90,187,051 5.73%
The ratio of sales in self-owned exclusive shop exceeds 10%
□Applicable Inapplicable
Sales of online direct sales
Applicable Inapplicable
First half of 2026 First half of 2025
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 1,270,312,869 529,242,951 58.34% 1,167,253,176 472,711,388 59.50%
Direct sales 302,391,884 125,472,448 58.51% 303,323,001 120,094,870 60.41%
Total 1,572,704,753 654,715,399 58.37% 1,470,576,177 592,806,258 59.69%
The change in sales prices of major products accounting for more than 10% of total operating
income in current report period exceeds 30% compared with those in last report period
□Applicable Inapplicable
Procurement mode and procurement content
Unit: CNY
Amount of major
Procurement mode Procurement content
procurement contents
Qualitative and price comparison Raw materials including grape/bulk wine 239,130,438
Invitation for bids / qualitative and price comparison Packaging materials 171,578,245
Invitation for bids / qualitative and price comparison Brewing materials 11,353,639
Invitation for bids / qualitative and price comparison Goods and materials for vineyard 136,277
Contract Fuel and power 13,368,713
Qualitative and price comparison Other alcoholic products and derivatives 2,892,772
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total
procedure amount
□Applicable Inapplicable
The year-on-year change in the price of major outsourced raw materials exceeds 30%
□Applicable Inapplicable
Major production mode
The production mode of the Company is self-produce.
Commissioned processing and production
□Applicable Inapplicable
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Major components of operating costs
① Classification of sector
Unit: CNY
First half of 2026 First half of 2025 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 282,232,769 44.79% 267,451,974 46.89% 5.53%
Packing material 174,235,825 27.65% 140,956,522 24.71% 23.61%
Liquor
Wages 22,012,122 3.49% 15,526,190 2.72% 41.77%
and
alcoholic Manufacturing
beverage expenses
Contract
performance costs
② Classification of product
Unit: CNY
First half of 2026 First half of 2025 Year-on-year
Product Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 207,481,662 46.00% 189,873,882 46.52% 9.27%
Packing material 122,251,181 27.10% 100,999,372 24.75% 21.04%
Wages 16,830,327 3.73% 11,392,118 2.79% 47.74%
Wine Manufacturing
expenses
Contract
performance costs
Blending liquor 74,751,107 41.74% 77,578,092 47.81% -3.64%
Packing material 51,984,645 29.03% 39,957,149 24.62% 30.10%
Wages 5,181,795 2.89% 4,134,072 2.55% 25.34%
Brandy Manufacturing
expenses
Contract
performance costs
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Yield and inventory
Year-on-year increase or
Sector/Product Item Unit First half of 2026 First half of 2025
decrease (%)
Sales Ton 35,627 33,812 5.37%
Liquor and
Yield Ton 29,164 27,411 6.39%
alcoholic beverage
Inventory Ton 19,498 20,451 -4.66%
Sales Ton 23,965 23,336 2.70%
Wine Yield Ton 20,409 20,525 -0.56%
Inventory Ton 13,474 13,610 -1.00%
Sales Ton 11,662 10,476 11.32%
Brandy Yield Ton 8,754 6,886 27.12%
Inventory Ton 6,023 6,841 -11.95%
Compared with the participants in the arena of the Chinese wine competition sector, the
Company owns following advantages:
Firstly, the Company has a large brand influence. Main brands used have a long history.
“Changyu”,“Noble Dragon”and“AFIP”are all “China famous brands” that have strong
influence and good reputation.
Secondly, the Company has set up a nationwide marketing network. The Company has
formed a “three-level” marketing network system mainly composed of the Company's
salesmen and distributors and the online sales platform has had a certain scale and strong
influence, owing strong marketing ability and market exploitation ability.
Thirdly, the Company has strong scientific prowess and a product R&D system. Relying on
the country's “State-level Wine R&D Center”, the Company has owned powerful winemaker
team, mastered advanced winemaking technology and production processes and had strong
product innovation capacity and perfect quality control system.
Fourthly, the Company is in possession of a lot of grape-growing bases that are compatible
with its development requirements. The Company has developed a great deal of vineyards in
the most suitable areas for wine grape growing such as Shandong, Ningxia and Xinjiang, and
its subsidiary overseas enterprises also own matching grape bases in local area, making the
overall scale and structure generally meet the Company's needs for future development.
Fifthly, products in high, medium and low-grade as well as varieties and categories are all
complete. Over 100 varieties of series products such as wine, brandy and sparkling wine
covers various grades, including high, medium and low-grade, which can meet different
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
consumer groups' demands. The Company has taken the dominant status in the domestic wine
industry after many years' development and has comparative advantages in the future
competition.
Sixthly, the Company has a relatively perfect motivation system. Most of Company's
employees indirectly hold the Company's equity through controlling shareholders. There are
high consistency between employee benefits and shareholders benefits, in favor of motivating
employees to create value for shareholders.
Seventhly, the Company has set up flexible and efficient decision-making mechanism. The
Company's core management team always maintains a working style of unity and pragmatic
and flexible and efficient decision-making mechanism, which makes the Company can deal
with market changes more calmly.
Eighthly, the global production capacity layout has been basically completed. The Company
has completed production capacity layout in China, France, Chile, Spain, Australia and other
major wine producing countries in the world, enabling making better use of global
high-quality raw material resources, capital, talents and advanced production processes and
technologies to provide consumers with diversified quality products and better serve
consumers.
Based on the above reasons, the Company has formed relatively strong core competence and
will maintain a relatively dominant position in the future predictable market competition.
Summarization
During the report period, the domestic wine market still maintained a downward trend.
Market demand was seriously insufficient, and competition was extremely fierce. The
profitability of wine enterprises further declined. The market share of wine in alcoholic
products became smaller and smaller. Coupled with the squeeze from other advantageous
wine types, the development trend of the industry remained at a low level and there were no
obvious signs of a rebound. Facing a severe market environment, the Company adhered to a
consumer-oriented approach, intensified marketing reforms, strictly controlled various
expenses, actively engaged in product and marketing innovation, and strove to explore new
sales channels and emerging markets, achieving certain results.
First, adhere to a consumer-oriented approach, actively guide and cultivate the wine
consumption population, create wine consumption scenarios, and strive to expand the wine
market scale. During the reporting period, the Company significantly adjusted and improved
the sales division system, deepened the “marketing” and “sales” separation reform, shortened
the distance between the Company and consumers, laying a solid foundation for better
serving consumers; further focused on products, markets and marketing actions, based on
different market development stages, implement targeted marketing strategies. Some
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
“decisive battle” markets and innovative products such as Long Tailed Cat have achieved
breakthrough progress. The sales revenue of key products has steadily increased. Initiating or
leveraging marketing events such as Yun Lin's endorsement for Long Tailed Cat, Macron's
praise for Changyu Longyu, Wulaa's “Yantai's sea wind has alcohol”, Minhong Yu's visit to
Changyu, Shi Yu becoming the new spokesperson for Changyu's classic brand, Trump's
special occasion of drinking Changyu AFIP, and Putin's 13 visits to China all drinking
Changyu AFIP, and have further enhanced the brand's popularity and reputation.
Second, closely followed the consumption trends, accelerated the speed of market response,
continuously improved product quality and developed new products, effectively meeting the
demands of consumers. During the reporting period, the overall quality of our products
steadily improved, and the speed of responding to consumers' needs further accelerated; in
accordance with the new consumption environment, we strengthened the marketing
promotion of innovative products such as “Long Tailed Cat” and “Commander Bear”,
achieving remarkable results; by fully leveraging celebrity fans, carried out interactive
communication and marketing for new product launches online, which stimulated product
sales.
Third, the “going out work” of tourism business has been steadily promoted, the tourist
reception volume and tourism income have achieved double growth year on year, and the
satisfaction of tourists has been greatly improved, which has not only better empowered the
brand of Changyu, but also achieved considerable economic benefits.
Fourth, strengthen financial management and audit supervision, prevent operational risks, and
enhance operational efficiency. During the reporting period, the Company proposed the
“automatic collection, fixed retention, and linked payment” fund pool strategy, promoted the
settlement of internal unit debts, and improved the safety and utilization efficiency of funds;
reasonably combined various diversified financial management tools such as time deposits,
structured deposits, and agreed deposits, increasing the fund income; effectively handled
special tasks such as personal income tax research, goods and labor tax investigation, tax
source sorting of real estate, and tax deduction for fund dividends research, avoiding and
preventing tax-related risks; by leveraging information tools such as “Every Moment” and
“Collaborative Office”, further standardized capital expenditure project management;
persistently conducted regular audits such as manager departure audits and economic
efficiency audits, strengthened key expense audits such as advertising expenses of business
divisions, and improved the level of audit supervision, reducing operational risks.
Fifth, the Company continued to implement B-share repurchases to protect the interests of
investors. As of July 28, 2026, the Company had cumulatively repurchased 13,960,000
domestic listed foreign capital shares (B shares) through the dedicated securities account for
share repurchase by means of centralized bidding, accounting for 6.9991% of the Company's
B shares and 2.1240% of the Company's current total share capital. The highest transaction
price for this repurchase was HKD 8.43 per share, while the lowest was HKD 7.99 per share.
The total amount of funds paid for the repurchase was HKD115,634,831.36 (including
transaction fees).
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Based on the implementation of above measures, the Company achieved certain results in the
first half of 2026 with a slight increase in revenue compared to the previous year; however,
the net profit had a year-on-year decline, and the Company faces significant pressure and
great uncertainty in fully achieving the financial budget targets for the year 2026. To achieve
the business goals, the Company will focus on the following tasks in the second half of 2026:
First, guided by the “adhere to the right path while innovating” strategy, the Company will
comprehensively and deeply implement the separation of “marketing” and “sales”, get closer
to consumers, adhere to the consumer--oriented approach, continuously improve products and
services, and promote the steady and healthy development of all wine varieties.
Second, accelerate the training and recruitment of talents, and build a backbone team capable
of handling tough tasks. The Company will focus on large-scale recruitment of outstanding
talents with experience in the fast-moving consumer goods industry, expertise in marketing,
brand promotion, digitalization, and AI application, fully stimulating the “catfish effect”, and
enhancing the execution and combat effectiveness of the management team.
Third, increase the development and promotion of new products, strengthen product quality
and cost management, and continuously enhance product competitiveness. After conducting
in-depth and detailed research on the target population and consumption scenarios, the
Company will introduce de-alcohol wine and herbal wine in a timely manner; in response to
the current market trend of the low-alcohol trendy wine growing rapidly, follow the market
trend, fully utilize the global procurement model and the rich and high-quality fruit resources
in Yantai, combine technological innovation, and turn low-alcohol trendy wine into a star
product with advantages in cost and quality, which is highly favored by Chinese people.
Fourth, improve financial accounting, strengthen fund management, and strive to achieve the
goal of cost reduction and efficiency improvement. The Company will coordinate various
resources to complete the bank account bank-enterprise direct connection, the sorting of bill
direct connection information, connection, complete the upgrade and transformation of each
instant reimbursement system and SAP system, and the connection with the treasury system,
steadily promote the launch and implementation of the treasury project; promote the official
launch of the SAP system of the tourism system; do a good job in the data sorting, process
promotion and assessment of the cost reduction and efficiency improvement projects, and
ensure the complete achievement of the cost reduction and efficiency improvement goal.
Fifth, complete the work of repurchasing and canceling a portion of the restricted shares for
the third period of lifting restriction involved in the Company's 2023 restricted share
incentive plan.
Year-on-year change in key financial data
Unit: CNY
The same period Year-on-year
This period Cause of significant changes
of last year increase or decrease
Mainly due to the increase in product sales
Operating revenue 1,572,704,753 1,470,576,177 6.94%
volume
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Mainly due to the adjustment of product
Operating cost 654,715,399 592,806,258 10.44%
varieties
Mainly due to the increase in marketing
Sales expense 458,709,936 402,150,816 14.06%
expenses
Mainly due to the decline in depreciation
Management expense 121,375,686 126,647,959 -4.16%
expenses
Financial expense 11,470,668 -14,647,932 InapplicableMainly due to the increase in exchange loss
Income tax expense 68,901,273 81,765,775 -15.73%Mainly due to the decline in operating profit
Mainly due to the increase in research and
R&D expense 9,923,137 9,071,966 9.38%
development expenses
Net cash flow generated in Mainly due to the decrease in cash used for
operating activities purchasing goods and paying for services
Net cash flow generated in Mainly due to the decrease in cash flows
-34,870,771 92,905,302 -137.53%
investment activities from the disposal of fixed assets
Net cash flow generated in Mainly due to the dividends distribution and
-203,934,105 -272,782,891 25.24%
financing activities decline in profits
Net increased amount of Mainly due to the increase in net cash flow
cash and cash equivalents from operating activities
Significant change in the profit form and profit source of the Company during the report
period
□Applicable Inapplicable
There is no significant change in the profit form and profit source of the Company during the
report period.
Composition of operating revenue
Unit: CNY
This report period The same period of last year Year-on-year
Proportion in Proportion in increase or
Amount Amount
operating revenue operating revenue decrease (%)
Total operating revenue 1,572,704,753 100% 1,470,576,177 100% 6.94%
Sector-classified
Sector of liquor and
alcoholic beverage
Product-classified
Wine 1,047,878,619 66.63% 1,017,390,566 69.18% 3%
Brandy 451,447,014 28.71% 388,044,327 26.39% 16.34%
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Tourism 56,362,523 3.58% 47,631,132 3.24% 18.33%
Others 17,016,597 1.08% 17,510,152 1.19% -2.82%
Area-classified
Domestic 1,319,443,801 83.90% 1,213,721,087 82.53% 8.71%
Overseas 253,260,952 16.10% 256,855,090 17.47% -1.40%
The cases of industry, product or area accounting for over 10% in the Company's operating
revenue or operating profit
Applicable Inapplicable
Unit: CNY
Year-on-year Year-on-year Year-on-year
Operating Operating Gross increase or increase or increase or
revenue cost margin decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross margin
Sector-classified
Sector of liquor and
alcoholic beverage
Product-classified
Wine 1,047,878,619 451,055,597 56.96% 3.00% 10.52% -2.93%
Brandy 451,447,014 179,102,654 60.33% 16.34% 10.37% 2.14%
Tourism 56,362,523 15,791,898 71.98% 18.33% 21.05% -0.63%
Others 17,016,597 8,765,250 48.49% -2.82% -6.31% 1.92%
Area-classified
Domestic 1,319,443,801 495,097,216 62.48% 8.71% 15.14% -2.10%
Abroad 253,260,952 159,618,183 36.97% -1.40% -1.97% 0.36%
Under the condition that the statistical caliber of the Company's main business data is
adjusted during the report period, the Company's main business data adjusted on the basis of
caliber at the end of report period in recent one period.
Available Not available
The Company need to comply with the disclosure requirements of “Food and Liquor
Manufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
The same period Proportion of Proportion of Year-on-year
Items This period
of last year this period last period increase or decrease
Labor cost 126,706,728 119,403,300 27.62% 29.69% 6.12%
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Marketing expenses 165,264,594 130,423,949 36.03% 32.43% 26.71%
Cost of services 17,428,750 15,252,966 3.80% 3.79% 14.26%
Depreciation expense 31,272,848 30,786,813 6.82% 7.66% 1.58%
Storage rental fee 11,813,394 11,354,031 2.58% 2.82% 4.05%
Advertising expenses 37,780,989 29,798,339 8.24% 7.41% 26.79%
Trademark usage fee 6,470,914 5,451,141 1.41% 1.36% 18.71%
Travel expenses 13,046,687 12,906,974 2.84% 3.21% 1.08%
Design and production fee 5,937,874 4,921,771 1.29% 1.22% 20.65%
Conference fee 3,467,275 3,000,702 0.76% 0.75% 15.55%
Water, electricity and gas charges 5,352,813 5,414,402 1.17% 1.35% -1.14%
Others 34,167,070 33,436,428 7.45% 8.31% 2.19%
Total 458,709,936 402,150,816 100% 100.00% 14.06%
□Applicable Inapplicable
Unit: CNY
At the end of this report period At the end of last year Proportion Explanation on
Item Proportion in the Proportion in the increase or significant
Amount Amount
total assets (%) total assets (%) decrease (%) changes
No significant
Monetary funds 2,083,218,301 17.53% 1,890,611,804 15.69% 1.84%
changes
No significant
Account receivables 163,572,526 1.38% 264,932,724 2.20% -0.82%
changes
No significant
Contract assets 0 0% 0 0% 0%
changes
No significant
Inventory 2,793,700,741 23.51% 2,836,077,209 23.53% -0.02%
changes
No significant
Investment real estate 18,773,534 0.16% 19,900,228 0.17% -0.01%
changes
Long-term equity No significant
investments changes
No significant
Fixed assets 5,183,660,371 43.62% 5,308,778,632 44.05% -0.43%
changes
No significant
Construction in progress 6,350,167 0.05% 4,313,088 0.04% 0.01%
changes
No significant
Right-of-use asset 88,248,378 0.74% 55,252,509 0.46% 0.28%
changes
No significant
Short-term borrowings 244,352,064 2.06% 240,674,788 2% 0.06%
changes
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
No significant
Contract liability 115,718,391 0.97% 135,067,463 1.12% -0.15%
changes
No significant
Long-term borrowings 44,628,112 0.38% 52,374,840 0.43% -0.05%
changes
No significant
Lease liability 47,387,670 0.40% 19,437,830 0.16% 0.24%
changes
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Applicable Inapplicable
Unit：CNY
Formation Operation Control measures for safeguarding of Earning Proportion of overseas assets Whether there are
Details of assets Assets scale Location
reasons mode asset security condition in the Company's net assets significant impairment risks
The Company participates in making important
Hacienda Y Vinedos Acquisition of Independent
Marques Del Atrio. SL equity operation
appoints CFO on financial management.
Establishment
Indomita Wine Independent The Company participates in making important
of joint 515,819,594 Chile -4,083,170 4.95% No
Company Chile, S.p.A. operation decisions through Board of Directors.
venture
Kilikanoon Estate Pty., Acquisition of Independent The Company participates in making important
Ltd. equity operation decisions through Board of Directors.
Sole The Company participates in making important
Francs Champs Independent
proprietorship 193,503,440 France decisions through directly appointing senior -3,474,192 1.86% No
Participations SAS operation
establishment executive.
Other information explanation None
□Applicable Inapplicable
Please refer to the “Notes to the Consolidated Financial Statements” in the financial report of this report, specifically the “Assets with restricted
ownership or use rights”.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Applicable Inapplicable
Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation
□Applicable Inapplicable
Applicable Inapplicable
Unit: CNY
Accumulated Accumulated Reasons for
Whether
Involved Investment actual realized unreached
belongs to
Investme sectors of amount during investment Capital Project Estimated earnings up planning Disclos
Project name fixed Disclosure index (if have)
nt mode investment the report amount up to the source progress earnings to the end of schedule and ure date
assets
projects period end of the report the report estimated
investment
period period earnings
Yantai Changyu
Please refer to Resolution
International
Self-cons Owned 2017.04 Announcement of Seventh Session
Wine City Yes 0 1,705,784,100 100.00% 0 0 -
tructed fund .22 Board of Directors 4th Meeting,
Blending and
Liquor and Resolution Announcement of
Cooling Center alcoholic Seventh Session Board of
Yantai Changyu beverage Directors 8th Meeting, Resolution
International Self-cons sector Owned 2017.04 Announcement of Seventh Session
Yes 1,500,000 1,138,020,000 100.00% 0 0 -
Wine City tructed fund .22 Board of Directors 10th Meeting,
Bottling Center Resolution Announcement of
Oak Barrel Self-cons Yes 10,006,247 247,527,147 Owned 98.00% 0 0 - 2021.04 Eighth Session Board of Directors
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Procurement tructed fund .28 4th Meeting, Resolution
Project Announcement of Eighth Session
Board of Directors 11th Meeting,
Resolution Announcement of
Ninth Session Board of Directors
Projects of Yantai Announcement of Ninth Session
local companies Board of Directors 9th Meeting,
Self-cons Owned 2025.04
and chateaux Yes 5,450,600 11,183,600 75.00% 0 0 - Resolution Announcement of
tructed fund .18
placed other than Ninth Session Board of Directors
Yantai 11th Meeting and Resolution
Announcement of Tenth Session
Board of Directors 5th Meeting
disclosed on CNINFO
(http://www.cninfo.com.cn/)
Total -- -- -- 16,956,847 3,102,514,847 -- -- 0 0 -- -- --
① Security investment situation
□Applicable Inapplicable
There are no security investments for the Company during the report period.
② Derivatives investment
□Applicable Inapplicable
There are no derivatives investments for the Company during the report period.
□Applicable Inapplicable
There are no usage situations of raised capital for the Company during the report period.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Applicable Inapplicable
There are no sale of significant assets for the Company during the report period.
Applicable Inapplicable
Applicable Inapplicable
Situation of main subsidiaries and joint stock companies affecting over 10% of the Company's net profit
Unit: CNY
Company name Company type Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Yantai Changyu Pioneer Wine Sales Sales of alcoholic
Subsidiary CNY8million 593,797,739 14,703,921 1,034,589,646 103,864,535 84,330,874
Co., Ltd. products
Yantai Changyu Wine Sales Co., Sales of alcoholic
Subsidiary CNY5million 89,504,019 79,114,571 337,933,233 57,372,596 43,020,282
Ltd. products
Changyu Trading Co., Ltd. in Sales of alcoholic
Subsidiary CNY5million 97,300,034 15,151,797 49,828,680 6,676,628 4,998,721
Development Zone of Yantai products
Laizhou Changyu Wine Sales Co., Sales of alcoholic
Subsidiary CNY1million 39,351,180 1,087,342 121,891,996 6,343,136 4,757,427
Ltd. products
Acquisition and disposal of subsidiaries during the report period
□Applicable Inapplicable
Explanation on main holding and joint stock companies
None
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
□Applicable Inapplicable
Grapes are the Company's main raw materials. The grape's yield and quality are affected to a
certain extent by the natural factors such as drought, wind, rain, frost and snow. These force
majeure factors greatly influence the quantity and price of the grapes in this Company orders
and add the uncertainty to the Company's production and operation. Therefore, the Company
will lower the risks that are likely to affect grape quality and result in price fluctuation by
means of expanding the self-run vineyards, strengthening the vineyard management and
optimizing the layout of vineyards.
To cope with the cutthroat market competition and to meet the needs for market development,
the Company has input more and more capital in the market and the sales expense has taken
up a higher percentage point in the business revenue. The input-output ratio will affect the
Company's operating results to a great extent and the risk that some investments may not
reach the expectations is likely to occur. Therefore, the Company will strengthen market
research and analysis, enhance market forecast accuracy and continue to perfect the
input-output evaluation system to ensure the investments in market to be satisfactory as
expected.
The Company's products are fragile and sent to different places all over the world, mostly by
sea, railway and expressway. The peak season of sales is usually in cold winter and close to
the spring festival when market has a great demand. At that time, the natural and human
factors such as serious shortage of transport capacity resulting from busy flow of people and
goods, wind, snow, freezing as well as traffic accidents make the transport departments
difficult to send products to markets in time and safely. As a result, it makes this Company
have to face the risks of missing the peak season of sales. Therefore, the Company will adopt
all methods possible like making precise sales prediction and well designed connection of
production and sales, reasonably arranging production and transport means and making use of
more available warehouses in different places to lower these kinds of risks.
The Company invested many projects in the previous periods and the investment amounts
were relatively large. For individual project, owing to the influence of various factors, it led to
have the risks of facing with the investment amount out of budget or hardly taking back the
expected investment earnings. The Company will take an adequate argument and scientific
decision-making for investment projects, try hard to reduce and avoid investment risks.
The Company's overseas subsidiaries export products to many different countries and the
export amount is relatively large. There may be exchange losses or gains due to exchange rate
fluctuation.
During the production and sales of the Company's products, it may be affected by force
majeure such as wars, typhoons, earthquakes, etc..
and implementation
Whether the company has established a market value management system
Yes No
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
The company has formulated a Market Value Management System, which mainly covers the
purposes and basic principles of market value management, the structure and responsibilities
of market value management, the main methods of market value management, the monitoring
and early warning mechanism, and the emergency measures. This has further standardized
and improved the behavior of market value management.
Whether the company has disclosed a valuation enhancement plan
□Yes No
Whether the company disclosed the “The Improvement Both on Quality and Return” action
plan
□Yes No
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
IV. Corporate Governance, Environmental and Social Responsibility
Applicable Inapplicable
Name Position held Type Date Reason
General manager Terminate the
Zhenbo XIAO 2026.03.09 Personal reason
assistant appointment
during the report period
□Applicable Inapplicable
The Company plans not to distribute cash dividends or give bonus shares or make capitalization of
capital reserve into share capital.
plan or other employee incentive measures
Applicable Inapplicable
In 2023, the Company implemented the restricted share incentive plan for 203 middle-level
managers and core cadres and granted them 6,785,559 shares of restricted share. On July 24, 2026,
the Company's Fifth Interim Board of Directors Meeting in 2026 deliberated and approved the
Proposal on Failure to Achieve Conditions for Lifting Restrictions in the Third Period of Lifting
Restriction Involved in the Company's 2023 Restricted Share Incentive Plan and Proposal on
Buy-back and Cancelling Some Restricted Shares of the Company's 2023 Restricted Share
Incentive Plan and to Adjust the Buy-back Price. The conditions for lifting restrictions in the third
restriction-lifted period of restricted shares granted under the Company's Incentive Plan have not
been met, and the number of restricted shares granted to the Company's 179 incentive subjects that
needs to be bought back and cancelled amounts to 2,485,626 shares.
Available Not available
Available Not available
Whether the listed company and its major subsidiaries are included in the list of enterprises that
disclose environmental information in accordance with the law
Yes No
The number of enterprises included in the list of enterprises legally disclosing environmental information 1
Query index for the report on the legal disclosure of
No. Company Name
environmental information
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
farmer” or “company + cooperative + farmer”, reformed the sloping fields of Jiaodong
Peninsular and the northwestern area including Ningxia and Xinjiang and so on, the
uncultivated land or the barren land into graperies. By means of providing capital and
technology of viticulture to fruit growers, scientific management level of vineyard had been
improved. The Company spared no effort to popularize the non-pollution and mechanized
planting methods, continuously improved production efficiency of grape base and quality of
grape, and reduced production cost of grape and labor intensity. Through the above measures,
on the one hand, it promotes the effective use of land resources, promotes the organic
integration of rural households and modern agriculture, and helps increase agricultural
efficiency, farmers' incomes and rural development; on the other hand, it improves the local
ecological environment and brings huge ecological benefits.
an old revolutionary base area by purchasing local agricultural products to help solve the
problem of slow sales.
employees with poor families, as well as the Company's in-service or retired employees with
chronic or serious illnesses.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
V. Major issues
acquirers and the Company and other related commitment parties have implemented
during the report period and have not implemented up to the end of the report period
□Applicable Inapplicable
There is no commitments that the Company's actual controllers, shareholders, related parties,
acquirers and the Company and other related commitment parties have implemented during
the report period and have not implemented up to the end of the report period
and its related parties
□Applicable Inapplicable
There is no non-operational occupation capital of the listed company by controlling
shareholder and its related parties during the report period.
□Applicable Inapplicable
There is no illegal guarantee situation during the report period.
Whether the semi-annual report has been audited
Yes No
The semi-annual report has not been audited.
during this report period
□Applicable Inapplicable
last year
□Applicable Inapplicable
□Applicable Inapplicable
There are no related issues of bankruptcy reorganization happened at the end of the report
period.
Material litigation and arbitration
□Applicable Inapplicable
There are no material litigation and arbitration during the report period.
Other Litigation Issue
□Applicable Inapplicable
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
□Applicable Inapplicable
There is no penalty and rectification during the report period.
□Applicable Inapplicable
Applicable □Inapplicable
Proportion Approved Whether
Available
Amount accounting for exceed
Related Relationsh Pricing transaction Clearin market price Disclosu
Type Content Price (CNY amount of approved Disclosure index
party ip principle quota (CNY g form of similar re date
‘0000) similar transaction
‘0000) transactions
transactions quota
Expected
Announcement on
Purchase
Yantai Controlled 2026 Annual Routine
Purchase and
Shenma by the Determine Related Transaction
and commission Agreemen 2026.02.
Packagin same d by 2,326 13.35% 6,600 No Cash No disclosed in China
commission processing t pricing 12
g Co., parent agreement Securities
processing packaging
Ltd. company Journal,SecuritiesTim
materials
esand CNINFO in
February 12, 2026
Total -- -- 2,326 -- 6,600 -- -- -- -- --
Details of the return of large sales No
Actual performance of the estimated total amount for
daily operations related transactions by category that No
will occur during this period.
Reason for the deference between transaction price Inapplicable
and market reference price
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
□Applicable Inapplicable
There are no related transactions in relation to acquisition or sales of assets or equity during
the report period.
□Applicable Inapplicable
There are no related transactions in relation to common foreign investment during the report
period.
Applicable □Inapplicable
Whether or not existing non-operating related credit and debt transactions
□Yes No
There is no non-operating related credit and debt transactions during the report period.
□Applicable Inapplicable
There is no deposit, loan, credit granting or other financial business between the related
financial companies and related parties.
□Applicable Inapplicable
There is no deposit, loan, credit granting or other financial business between the financial
companies controlled by the Company and related parties.
Applicable □Inapplicable
For other major related transactions, please refer to the Announcement of 2026 Annual
Expected Routine Related Transaction and the Section XI “ Related Parties and Related
Transaction” of the Financial Report of this report.
Disclosure website of interim report for major related transaction
Disclosure date of interim Name of disclosure website
Name of interim announcement
announcement for interim announcement
Announcement of 2026 Annual Expected 2026.02.12 CNINFO (www.cninfo.com.cn)
Routine Related Transaction
① Trusteeship situation
□Applicable Inapplicable
There is no trusteeship situation during the report period.
② Contracting situation
□Applicable Inapplicable
There is no such contracting situation during the report period.
③ Lease situation
Applicable □Inapplicable
Explanation for lease situation
On January 1, 2022, the Company renewed the Space Lease Agreement with the controlling
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
shareholder Yantai Changyu Group Company Limited. The Company leased the space with
rent per year is CNY1.4645million with a rental period of 5 years from January 1, 2022 to
December 31, 2026.
On January 1, 2022, the Company's subordinate Sales & Marketing Co. of Yantai Changyu
Pioneer Wine Company Limited Brandy Sales Division renewed the Space Lease Agreement
with the controlling shareholder Yantai Changyu Group Company Limited, leasing the space
with 42,552.83 square meters locating at No. 1 Jichang Road, Zhifu District, Yantai City and
the space with 3,038 square meters locating at 56 Dama Road, Zhifu District, Yantai City,
which are all under the name of controlling shareholder. The rent of above spaces per year is
CNY4.3935million with a rental period of 5 years from January 1, 2022 to December 31,
In 2023, this Company signed a house-leasing contract with Yantai Shenma Packaging
Company Limited. According to this contract, since July 1, 2023, this Company leased
property to Yantai Shenma Packaging Company Limited for a business purpose with the
annual rent of CNY1,626,880. This contract expires on June 30, 2028.
Project whose profit and loss brought for the Company reach more than 10% of the total
profit during the report period
Applicable Inapplicable
There are no lease projects whose profit and loss brought for the Company reach more than
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Applicable □Inapplicable
Unit: CNY'0000
External guarantee of the Company and its subsidiaries（excluding guarantee to subsidiaries）
Disclosure date of Countergua
Actual date of Whether or not Whether or not belong
related Guarantee Actual guarantee Guarantee Collateral rantee
Guarantee object name occurrence (date of Guarantee Period complete to related-party
announcement about quota amount type (if have) situation (if
agreement) implementation guarantee
guarantee quota have)
——
Guarantee situations between the Company and subsidiaries
Disclosure date of
Countergua Whether or not Whether or not belong
related Guarantee Actual date of Actual guarantee Guarantee
Guarantee object name Collateral rantee Guarantee Period complete to related-party
announcement about quota occurrence amount type
situation implementation guarantee
guarantee quota
Effective as of the
date this
Agreement is
signed and will
Joint liability
Kilikanoon Estate Pty Ltd 2025.10.25 7,000 2023.09.01 7,000 - - remain in effect as No Yes
assurance
long as the
guarantor remains
in business with
East West Bank
Three years from
Hacienda Y Vinedos Joint liability
Marques Del Atrio. SL assurance
performance
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
period of the
debtor's debt
under the principal
creditor-debtor
contract expires.
Total of the guarantee quota approved to Total of the actual guarantee amount for subsidiaries during
subsidiaries during the report period (B1) the report period (B2)
Total of the guarantee quota approved to Balance of the actual guarantee for subsidiaries by the end
subsidiaries by the end of the report period (B3) of the report period (B4)
Guarantee situations between subsidiaries
Countergu Whether or not
Disclosure date of Actual date of Actual Whether or not
Guarantee Collateral arantee belong to
Guarantee object name related announcement occurrence (date of guarantee Guarantee type Guarantee Period complete
quota (if have) situation related-party
about guarantee quota agreement) amount implementation
(if have) guarantee
Total guarantee amount of the Company（Total of above three major items）
Total of the approved guarantee quota during the Total of the actual guarantee amount during the report
report period（A1+B1+C1） period（A2+B2+C2）
Total of the approved guarantee quota by the end Balance of the actual guarantee by the end of the report
of the report period（A3+B3+C3） period（A4+B4+C4）
The proportion of actual total guarantee amount (A4+B4+C4) accounting for the Company's net asset 2.05%
Among :
The amount of guarantee for shareholders, actual controllers and their related parties（D） 0
The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is more than 70% directly or indirectly（E） 0
Total amount of guarantee of the part that exceeds 50% of net assets（F） 0
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Total amount of the above-mentioned three items（D+E+F） 0
Explanation for undue guarantees that have happened warranty liability or may take joint payback liabilities during the report period (if have) No
Explanation for violating due process to provide external guarantee (if have) No
Explanation on specific situations of adapting guarantee by complex methods
None
Applicable Inapplicable
There is no financial management entrustment during the report period.
Applicable Inapplicable
There are no other important contracts during the report period.
Applicable □Inapplicable
Reception Type of reception Main discussed contents and
Reception place Reception pattern Reception object Basic situation index of reception
time object provided data
Investor Relations Network
Institutions, individuals The recent production and operation The Record of Investor-relations Activity
and others situation of the Company disclosed on Shenzhen Stock Exchange
(https://ir.p5w.net) communication
The Company's Institutions, individuals All investors attending the on-site The recent production and operation The Record of Investor-relations Activity
meeting room and others meeting of the Shareholders' Meeting situation of the Company disclosed on Shenzhen Stock Exchange
Applicable Inapplicable
There are no other major issues that need to be explained during the report period.
Applicable Inapplicable
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
VI. Changes in Shares and Shareholders' Situation
Unit: share
Amount before this change Change (+, -) Amount after this change
Percentage Distribute bonus Transfer other capital Percentage
Amount Allot new share Others Subtotal Amount
% share to share capital %
I. Shares with trading limited condition 2,674,326 0.41% 56,675 56,675 2,731,001 0.42%
Among which: domestic legal person
domestic natural person 2,674,326 0.41% 56,675 56,675 2,731,001 0.42%
Among which: foreign legal person
foreign natural person
II. Shares without trading limited condition 654,565,802 99.59% -56,675 -56,675 654,509,127 99.58%
III. Total shares 657,240,128 100% 657,240,128 100%
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Cause of share change
Applicable Inapplicable
The change in restricted shares is due to the variation in the number of shares locked up by senior
executives.
Approval of share change
Applicable Inapplicable
Transfer ownership of changed shares
Applicable Inapplicable
Implementation progress of share buy-back
Applicable Inapplicable
As of July 28, 2026, the Company has bought back 13,960,000 B shares of the Company through
share buy-back special securities account in a centralized bidding mode, accounting for 6.9991%
of Company's B shares and 2.1240% of Company's current total share capital, with the highest
transaction price of HKD 8.43 per share and the lowest transaction price of HKD 7.99 per share.
The total transaction amount was HKD 115,634,831.36 (including transaction fees) that
equivalent to CNY99,995,053.11, which is less than CNY100million.
The shares being bought back are currently undergoing the transfer process. The actual number of
shares bought back falls within the range specified in the repurchase plan (i.e., the number of
buy-back shares is no less than 10 million and no more than 15 million).
Implementation progress of reducing holding buy-back share through the way of centralized
bidding
Applicable Inapplicable
The influence of share change on the financial indicators such as basic earnings per share, diluted
earnings per share of the latest year and the latest period, net asset per share belonging to the
Company's common shareholders, etc.
Applicable Inapplicable
Other contents the Company thinks necessary or securities regulatory departments ask to make
public.
Applicable Inapplicable
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Applicable Inapplicable
Unit: share
Number of restricted Number of restricted Number of restricted Number of restricted
Date of lifting
Shareholder name shares at the shares lifted during shares increased shares at the end of Reason for restricted sale
restrictions
beginning period this period during this period the period
Released restricted shares but cannot be sold
Hongjiang ZHOU 41,700 18,000 59,700 —
due to senior executive lock-in
Released restricted shares but cannot be sold
Jian SUN 123,000 15,750 138,750 —
due to senior executive lock-in
Released restricted shares but cannot be sold
Jiming LI 8,000 12,000 20,000 —
due to senior executive lock-in
Released restricted shares but cannot be sold
Jianxun JIANG 8,000 12,000 20,000 —
due to senior executive lock-in
Released restricted shares but cannot be sold
Bin PENG 8,000 6,075 1,925 —
due to senior executive lock-in
Jianfu PAN 0 0 — —
Qingkun KONG 0 — —
Shilu LIU 0 — —
Released restricted shares but cannot be sold
Zhenbo XIAO 0 5,000 5,000 —
due to senior executive lock-in
Hongbo SUN 0 — —
Cuimei GUO 0 — —
Other 179 individuals who are the recipients of the
Total 2,674,326 6,075 62,750 2,731,001 -- --
Applicable Inapplicable
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: share
Total number of preferred shareholder recovering voting power by the end of report period (if have)
Total shareholders in the report period 39,835 0
(see note 8)
Shareholders holding more than 5% or the top 10 shareholders holding situation (exclude the lending of shares through the margin lending and securities lending system)
Character of Percentage Shares held until the end Changes during the Number of Number of Pledged or frozen
Name of Shareholders
shareholders (%) of the report period report period restricted shares unrestricted shares Share status Amount
Domestic non-state legal
YANTAI CHANGYU GROUP CO., LTD. 52.56% 345,473,856 0 0 345,473,856 Inapplicable 0
person
Fengdi JIANG Domestic natural person 0.67% 4,429,000 -106,834 0 4,429,000 Inapplicable 0
Hairong HU Domestic natural person 0.54% 3,550,035 83,000 0 3,550,035 Inapplicable 0
VANGUARD TOTAL INTERNATIONAL STOCK
Foreign legal person 0.52% 3,446,137 -20,898 0 3,446,137 Inapplicable 0
INDEX FUND
Social Security Fund 114 Other 0.52% 3,425,055 0 0 3,425,055 Inapplicable 0
VANGUARD EMERGING MARKETS STOCK
Foreign legal person 0.47% 3,087,201 0 0 3,087,201 Inapplicable 0
INDEX FUND
HONG KONG SECURITIES CLEARING
Foreign legal person 0.46% 3,030,765 -67,692 0 3,030,765 Inapplicable 0
COMPANY LIMITED
Social Security Fund 413 Other 0.46% 3,000,060 0 0 3,000,060 Inapplicable 0
NORGES BANK Foreign legal person 0.35% 2,333,030 0 0 2,333,030 Inapplicable 0
Galaxy Jinhu Securities Asset Management - China
Great Wall Asset Management Co., Ltd. - Galaxy
Other 0.28% 1,847,841 1,847,841 0 1,847,841 Inapplicable 0
Jinhu Quanxin Changying Selective Single Asset
Management Plan
Strategic investors or legal result of the placement of new shares to become a
No
top 10 shareholders
Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action
The explanation for the associated relationship and accordant action
relationship with the other 9 listed shareholders, while the relationship among the other shareholders is unknown.
Explanation of the above-mentioned shareholders' entrustment/ fiduciary
No
voting rights and waiver of the voting rights
Special explanation for the existence of a special repurchase account among On June 30, 2026, the special repurchase securities account of Yantai Changyu Pioneer Wine Co., Ltd. held 4,830,000 B shares
the top 10 shareholders of the Company.
The top 10 shareholders with shares without trading limited condition (exclude the lending of shares through the margin lending and securities lending system and senior executive lock-in)
Name of Shareholders Number of shares without trading limited condition held until the end of the year Type of share
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Type of share Amount
YANTAI CHANGYU GROUP CO., LTD. 345,473,856 A 345,473,856
Fengdi JIANG 4,429,000 A 4,429,000
Hairong HU 3,550,035 A 3,550,035
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3,446,137 B 3,446,137
Social Security Fund 114 3,425,055 A 3,425,055
VANGUARD EMERGING MARKETS STOCK INDEX FUND 3,087,201 B 3,087,201
HONG KONG SECURITIES CLEARING COMPANY LIMITED 3,030,765 A 3,030,765
Social Security Fund 413 3,000,060 A 3,000,060
NORGES BANK 2,333,030 B 2,333,030
Galaxy Jinhu Securities Asset Management - China Great Wall Asset
Management Co., Ltd. - Galaxy Jinhu Quanxin Changying Selective Single 1,847,841 B 1,847,841
Asset Management Plan
The explanation for the associated relationship and accordant action of the top
accordant action between the top 10 shareholders with unrestricted shares and relationship with the other 9 listed shareholders, and the relationship among the other shareholders is unknown.
the top 10 shareholders
Explanation for the top 10 shareholders who involved in financing activities
No
and stock trading business
Shareholders holding more than 5%, the top 10 shareholders and the top 10 shareholders with unrestricted tradable shares participate in the lending of
shares involved in the refinancing business
Applicable Inapplicable
The top 10 shareholders and the top 10 shareholders with unrestricted tradable shares have changed from the previous period due to refinancing
lending/restitution reasons
Applicable Inapplicable
Whether or not the Company's top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction during the
report period
Yes No
There is no agreed repurchase transaction taken by the Company's top 10 common shareholders and top 10 shareholders with unrestricted shares during the
report period.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Applicable Inapplicable
Number of Increased number Decreased number Number of shares Number of restricted Number of restricted Number of restricted
Shares held at the of shares held in the of shares held in held at the end shares granted at the shares granted in the shares granted at the
Name Position Status beginning period current period the current period period beginning period current period end period
(shares) (shares) (shares) (shares) (shares) (shares) (shares)
ZHOU
Chairman Incumbent 207,600 207,600 168,000 0 168,000
Hongjiang
Director and
SUN Jian General Incumbent 297,000 297,000 147,000 0 147,000
Manager
Director and
LI Jiming Deputy General Incumbent 112,000 112,000 112,000 0 112,000
Manager
Director, Deputy
JIANG General
Incumbent 112,000 112,000 112,000 0 112,000
Jianxun Manager and
Board Secretary
Deputy General
PENG Bin Incumbent 87,900 87,900 87,900 0 87,900
Manager
General
PAN Jianfu Manager Incumbent 40,000 40,000 40,000 0 40,000
Assistant
General
KONG
Manager Incumbent 45,000 45,000 45,000 0 45,000
Qingkun
Assistant
General
LIU Shilu Manager Incumbent 40,000 40,000 40,000 0 40,000
Assistant
XIAO General
Outgoing 45,000 45,000 45,000 0 45,000
Zhenbo Manager
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Assistant
General
SUN
Manager Incumbent 14,389 14,389 14,389 0 14,389
Hongbo
Assistant
General
Manager
GUO
Assistant and the Incumbent 16,436 16,436 16,436 0 16,436
Cuimei
Person in Charge
of Finance
Total -- -- 1,017,325 0 0 1,017,325 827,725 0 827,725
The company has previously disclosed that the actual controller was planning to change the control rights but the process had not yet been completed.
Please provide an update on the progress of the control rights change.
Applicable Inapplicable
Changes in the controlling shareholders during the report period
Applicable Inapplicable
There is no any change in the controlling shareholders during the report period.
Changes in the actual controllers during the report period
Applicable Inapplicable
There is no any change in the actual controllers during the report period.
Applicable Inapplicable
There are no preferred shares during the report period.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
XII. Related Situation of Bonds
Applicable Inapplicable
XIII. Financial Report
Whether the semi-annual report has been audited
Yes No
The company’s semi-annual report has not been audited.
The unit in the statements of the financial notes is RMB Yuan.
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. June 30, 2026 Unit: yuan
Item Note June 30, 2026 December 31, 2025
Current assets:
Monetary capital 7.1 2,083,218,301 1,890,611,804
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable 7.2 100,000 102,342
Accounts receivable 7.3 163,572,526 264,932,724
Accounts receivable financing 7.4 222,487,233 228,073,841
Advance payment 7.5 14,506,780 54,011,809
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.6 113,246,526 127,713,309
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Note June 30, 2026 December 31, 2025
Inventories 7.7 2,793,700,741 2,836,077,209
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.8 66,722,522 74,160,936
Total current assets 5,457,554,629 5,475,683,974
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.9 23,357,099 26,656,197
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.10 18,773,534 19,900,228
Fixed assets 7.11 5,183,660,371 5,308,778,632
Construction in progress 7.12 6,350,167 4,313,088
Productive biological assets 7.13 57,081,603 60,098,714
Oil-and-gas assets
Right-of-use assets 7.14 88,248,378 55,252,509
Intangible assets 7.15 505,262,835 512,930,637
Including: Data resource
Development expenditure
Including: Data resource
Goodwill 7.16 88,036,557 88,036,557
Long-term deferred expenses 7.17 275,819,174 283,227,056
Deferred income tax assets 7.18 178,840,549 215,680,654
Other non-current assets 7.19 43,735 43,735
Total non-current assets 6,425,474,002 6,574,918,007
Total assets 11,883,028,631 12,050,601,981
Current liabilities:
Short-term borrowings 7.21 244,352,064 240,674,788
Borrowings from the Central Bank
Borrowing funds
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.22 313,132,902 321,932,168
Advances from customers
Liabilities of contracts 7.23 115,718,391 135,067,463
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Note June 30, 2026 December 31, 2025
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.24 128,744,727 162,525,617
Taxes and dues payable 7.25 129,984,754 158,558,934
Other payable 7.26 311,014,990 332,855,775
Including: Interest payable
Dividends payable 7.26 388,355
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.27 81,996,110 75,440,910
Other current liabilities 7.28 15,077,955 27,193,862
Total current liabilities 1,340,021,893 1,454,249,517
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.29 44,628,112 52,374,840
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 7.30 47,387,670 19,437,830
Long-term accounts payable
Long-term employee remunerations payable
Estimated liabilities
Deferred income 7.31 15,793,091 19,386,932
Deferred income tax liabilities 7.18 6,296,958 6,613,894
Other non-current liabilities
Total non-current liabilities 114,105,831 97,813,496
Total liabilities 1,454,127,724 1,552,063,013
Owner's equities:
Capital stock 7.32 657,240,128 657,240,128
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserves 7.33 364,048,502 364,048,502
Minus: Treasury stock 7.34 72,754,596 37,880,941
Other comprehensive income 7.35 -28,084,834 -16,329,710
Special reserves
Surplus reserves 7.36 342,732,000 342,732,000
General risk preparation
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Note June 30, 2026 December 31, 2025
Undistributed profits 7.37 9,013,643,371 9,037,437,598
Total owner's equities attributable to the parent company 10,276,824,571 10,347,247,577
Minority equity 152,076,336 151,291,391
Total owner's equities 10,428,900,907 10,498,538,968
Total liabilities and owner's equities 11,883,028,631 12,050,601,981
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan
Item Note June 30, 2026 December 31, 2025
Current assets:
Monetary capital 1,301,638,438 1,068,117,647
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 18.1 515,656
Accounts receivable financing 49,720,103 49,858,915
Advance payment 186,242
Other receivables 18.2 534,601,801 706,617,690
Including: Interest receivable
Dividends receivable 3,495,195 20,000,000
Inventories 396,548,891 368,660,076
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 13,654,075 1,761,013
Total current assets 2,296,865,206 2,195,015,341
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 18.3 7,639,851,962 7,639,851,962
Other investments in equity instruments
Other non-current financial assets
Investment real estate 18,773,534 19,900,228
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Note June 30, 2026 December 31, 2025
Fixed assets 129,455,126 138,604,795
Construction in progress
Productive biological assets 15,414,672 16,972,242
Oil-and-gas assets
Right-of-use assets 5,319,288 6,638,093
Intangible assets 65,687,592 67,060,514
Including: Data resource
Development expenditure
Including: Data resource
Goodwill
Long-term deferred expenses
Deferred income tax assets 2,323,687 3,339,186
Other non-current assets 1,805,430,000 1,812,430,000
Total non-current assets 9,682,255,861 9,704,797,020
Total assets 11,979,121,067 11,899,812,361
Current liabilities:
Short-term borrowings 50,000,000 50,000,000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 29,357,791 35,959,493
Advances from customers
Liabilities of contracts
Employee remunerations payable 59,137,772 64,506,520
Taxes and dues payable 1,586,591 3,040,948
Other payable 689,773,852 565,391,567
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 1,922,916 1,636,113
Other current liabilities
Total current liabilities 831,778,922 720,534,641
Non-current liabilities:
Long-term borrowings
Bonds payable
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Note June 30, 2026 December 31, 2025
Including: Preferred stock
Perpetual bonds
Lease liabilities 3,272,527 5,168,920
Long-term accounts payable
Long-term employee remunerations payable
Estimated liabilities
Deferred income 177,355 177,355
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 3,449,882 5,346,275
Total liabilities 835,228,804 725,880,916
Owner's equities:
Capital stock 657,240,128 657,240,128
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserves 401,287,028 401,287,028
Minus: Treasury stock 72,754,596 37,880,941
Other comprehensive income
Special reserves
Surplus reserves 342,732,000 342,732,000
Undistributed profits 9,815,387,703 9,810,553,230
Total owner's equities 11,143,892,263 11,173,931,445
Total liabilities and owner's equities 11,979,121,067 11,899,812,361
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan
Note Amount incurred in this Amount incurred in prior
Item
period period
Including: Operating income 7.38 1,572,704,753 1,470,576,177
Interest income
Earned premium
Handling fee and commission income
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
Including: Operating costs 7.38 654,715,399 592,806,258
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
Reinsurance expenditures
Taxes and surcharges 7.39 115,451,525 97,851,440
Selling expenses 7.40 458,709,936 402,150,816
Administrative expenses 7.41 121,375,686 126,647,959
R&D expenses 7.42 9,923,137 9,071,966
Financial expenses 7.43 11,470,668 -14,647,932
Including: Interest expenses 8,320,670 5,528,569
Interest income 8,050,884 5,914,026
Plus: Other profit 7.44 8,354,311 19,258,546
Investment profit (loss is listed with “-”) 7.45 -3,299,098 -3,018,088
Including: Investment profit for joint-run business and
-3,299,098 -3,018,088
joint venture
Financial assets measured at amortized cost
cease to be recognized as income
Exchange income (loss is listed with “-”)
Net exposure hedge income (loss is listed with “-”)
Income from fair value changes (loss is listed with “-”)
Credit impairment loss (loss is listed with “-”) 7.46 662,543 1,549,058
Asset impairment loss (loss is listed with “-”) 7.47 2,771,951 -2,093,965
Income from asset disposal (loss is listed with “-”) 7.48 25,845 361,014
Plus: Non-operating income 7.49 2,699,465 917,633
Minus: Non-operating expenses 7.50 265,628 589,363
Minus: income tax expenses 7.51 68,901,273 81,765,775
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
with “-”)
with “-”)
Net after-tax amount of other comprehensive income attributable
-11,755,124 13,583,338
to owner of the parent company
profit and loss later
benefit plans
reclassified into profit and loss under equity method
equity instruments
credit risk
-11,755,124 13,583,338
and loss later
into profit and loss under equity method
investments
comprehensive income
investments
-11,755,124 13,583,338
Financial Statement
Net after-tax amount of other comprehensive income attributable -1,417,413 1,287,233
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
to minority shareholders
Attributable to owner of the parent company 128,760,681 199,180,480
Attributable to minority shareholders 1,173,300 7,004,821
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan
Note Amount incurred in this Amount incurred in prior
Item
period period
Minus: Operating costs 18.4 138,231,034 145,265,979
Taxes and surcharges 5,842,654 3,077,351
Selling expenses
Administrative expenses 23,083,593 24,273,338
R&D expenses 362,067 1,672,191
Financial expenses -6,331,159 -3,745,617
Including: Interest expenses 736,182 890,133
Interest income 7,005,240 7,868,873
Plus: Other profit 47,939 1,319,967
Investment profit (loss is listed with “-”) 18.5 173,495,195 46,246,053
Including: Investment profit for joint-run business and
joint venture
Financial assets measured at amortized cost
cease to be recognized as income (loss is listed with “-”)
Net exposure hedge income (loss is listed with “-”)
Income from fair value changes (loss is listed with “-”)
Credit impairment loss (loss is listed with “-”) 898,656 -288
Asset impairment loss (loss is listed with “-”)
Income from asset disposal (loss is listed with “-”)
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
Plus: Non-operating income 1,142,570 194,320
Minus: Non-operating expenses 158,137 159,997
Minus: income tax expenses 1,568,848 2,271,268
“-”)
with “-”)
profit and loss later
benefit plans
reclassified into profit and loss under equity method
equity instruments
credit risk
and loss later
into profit and loss under equity method
investments
comprehensive income
investments
Financial Statement
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan
Note Amount incurred in this Amount incurred in prior
Item
period period
Cash received from sales of goods and rending of services 1,681,034,881 1,660,826,081
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
Cash received from collecting interest, handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchased business funds
Net cash received for buying and selling securities
Tax refund received 22,453,926 26,792,333
Other cash received related to operating activities 7.53 18,053,749 33,768,838
Subtotal of cash flows of operating activities 1,721,542,556 1,721,387,252
Cash paid for goods and services 548,067,483 673,020,392
Net increase in customer loans and advances
Net increase in deposits in central bank and interbank deposits
Cash paid to original insurance contract payments
Net increase in lending funds
Cash paid to interest, handling fees and commissions
Cash paid to policy bonus
Cash paid to and on behalf of employees 219,551,512 224,360,824
Cash paid for taxes and expenses 317,580,578 339,863,955
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
Other cash paid related to operating activities 7.53 218,107,090 244,720,953
Sub-total of cash outflows of operating activities 1,303,306,663 1,481,966,124
Net cash flows from operating activities 418,235,893 239,421,128
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 18,000,000 39,000,000
Cash received from obtaining investment income
Cash received from obtaining interest income 122,211 604,684
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
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 27,147,911 149,639,182
Cash paid to acquire fixed assets, intangible assets and other
long-term assets
Cash for investment
Cash paid for purchasing fixed deposits 33,000,000 18,000,000
Net increase in hypothecated loan
Net cash paid for acquiring branch and other business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 62,018,682 56,733,880
Net cash flow from investing activities -34,870,771 92,905,302
Cash received from acquiring investment
Including: Cash received from acquiring minority shareholders
investment by branch
Cash received from acquiring loans 247,817,093 221,495,666
Other cash received related to financing activities
Subtotal cash flows of financing activities 247,817,093 221,495,666
Cash paid for paying debts 234,205,307 202,716,654
Cash paid for distributing dividend and profit or paying
interest
Including: Dividend and profit paid to minority shareholders
by branch
Other cash paid related to financing activities 46,102,225 18,237,867
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
Subtotal of cash outflows of financing activities 451,751,198 494,278,557
Net cash flow from financing activities -203,934,105 -272,782,891
-1,380,000 1,469,544
equivalents
Plus: Balance at the beginning of the period of cash and cash
equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
Compiling unit: Yantai Changyu Pioneer Wine Co., Ltd. Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Cash received from sales of goods and
rending of services
Tax refund received
Other cash received related to operating
activities
Subtotal of cash flows of operating activities 388,273,639 205,199,332
Cash paid for goods and services 109,344,580 163,211,040
Cash paid to and on behalf of employees 25,778,082 27,267,075
Cash paid for taxes and expenses 17,869,533 14,046,037
Other cash paid related to operating
activities
Sub-total of cash outflows of operating
activities
Net cash flows from operating activities 221,764,311 -27,142,463
Cash received from disinvestment
Cash received from withdrawal of fixed
deposits
Cash received from obtaining investment
income
Cash received from obtaining interest 122,211 604,684
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
income
Net cash received from disposal of fixed
assets, intangible assets and other long-term 9,025,700 110,027,000
assets
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 627,909,587 357,761,979
Cash paid to acquire fixed assets,
intangible assets and other long-term assets
Cash for investment
Cash paid for purchasing fixed deposits 33,000,000 18,000,000
Net cash paid for acquiring branch and
other business unit
Other cash paid related to investment
activities
Subtotal of cash outflows of investment
activities
Net cash flow from investing activities 197,835,417 335,168,563
Cash received from acquiring investment
Cash received from acquiring loans
Other cash received related to financing
activities
Subtotal cash flows of financing activities
Cash paid for paying debts
Cash paid for distributing dividend and
profit or paying interest
Other cash paid related to financing
activities
Subtotal of cash outflows of financing activities 201,553,581 278,259,822
Net cash flow from financing activities -201,553,581 -278,259,822
cash and cash equivalents
Plus: Balance at the beginning of the
period of cash and cash equivalents
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
cash equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
This period
Owner's equities of the parent company
Item Other equity Minority Total owner's
Minus: Other General
Capital instruments Capital Special Surplus Undistributed equity equities
Treasury comprehensive risk Others Subtotal
stock Preferred Perpetual reserves reserves reserves profits
Others stock income preparation
stock bonds
Plus: Accounting policies changing
Previous error correction
Others
period (reducing amount is listed with “-”)
invested capital
owner's equities
-164,310,032 -164,310,032 -388,355 -164,698,387
shareholders)
increased capital (or capital stock)
increased capital (or capital stock)
the benefit plan variation
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
other comprehensive income
Unit: yuan
First Half of 2025
Owner's equities of the parent company
Item Other equity Minority Total owner's
instruments Minus: Other General
Capital Special Surplus Undistributed equity equities
Capital stock Treasury comprehensiv risk Others Subtotal
Preferred Perpetual reserves reserves reserves profits
Others stock e income preparation
stock bonds
Plus: Accounting policies
changing
Previous error correction
Others
in this period (reducing amount is 7,150,483 13,583,338 -83,132,418 -76,699,563 5,691,747 -71,007,816
listed with “-”)
capital
holders' invested capital
reckoned in owner's equities
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
preparation
-268,729,560 -268,729,560 -1,313,074 -270,042,634
shareholders)
and increased capital (or capital
stock)
and increased capital (or capital
stock)
deficit
over from the benefit plan amount
from other comprehensive income
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
This period
Other equity instruments Other
Item Capital Minus: Special Surplus Undistributed Total owner's
Capital stock Preferred Perpetual comprehensive Others
Others reserves Treasury stock reserves reserves profits equities
stock bonds income
Plus: Accounting policies changing
Previous error correction
Others
period (reducing amount is listed with “-”)
capital
owner's equities
increased capital (or capital stock)
increased capital (or capital stock)
benefit plan amount
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
other comprehensive income
Unit: yuan
First Half of 2025
Other equity instruments Other
Item Minus: Special Surplus Undistributed Total owner's
Capital stock Preferred Perpetual Capital reserves comprehensive Others
Others Treasury stock reserves reserves profits equities
stock bonds income
Plus: Accounting policies changing
Previous error correction
Others
period (reducing amount is listed with “-”)
capital
owner's equities
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
increased capital (or capital stock)
increased capital (or capital stock)
benefit plan amount
other comprehensive income
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
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”) 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
sparkling wine, 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 on June 30, 2026, the Company issued 657,240,128 shares accumulatively. Refer to Note
The parent company of the Group is Changyu Group incorporated in China, which was
ultimately and actually controlled by four parties, including Yantai Guofeng Investment
Holding Group 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 19, 2026.
The details of scope of the consolidated financial statement in this period can be seen in Note
The Company prepares the financial statement on the basis of continuous operation.
The Group has appraised the ability of continuous operation for 12 months from June 30,
this financial statement is prepared on the basis of the continuous operation assumption.
This financial statement fulfills the requirement of Accounting Standards for Business
Enterprises (ASBE) issued by the Ministry of Finance and gives a true and integrated view of
the consolidated financial status and the financial status as on June 30, 2026, as well as the
consolidated operating result, the operating result, the consolidated cash flow and the cash
flow of the Company from January to June 2026.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
In addition, the financial statement of the Company also complies with the related disclosure
requirements for statement and its notes stipulated by Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on
Financial Reports (2023 Revision) by the China Securities Regulatory Commission
(hereinafter referred to as the “CSRC”).
The accounting year is from January 1 to December 31 in Gregorian calendar.
The Company takes the period from the acquisition of assets for processing to the realization
of cash or cash equivalents as its normal operating cycle. The operating cycle of the
Company is 12 months.
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 EUR, CLP and AUD 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. In preparing these financial statements, the foreign
currency financial statements of overseas subsidiaries have been translated in accordance
with Note 5.9.
Item Significant standards
Single of other payables / accounts payable with
Other significant payables / accounts
an aging of over 1 year exceeding 0.5% of the
payable with an aging of over 1 year
Group's total liabilities
Single of construction in progress with the
Significant construction in progress carrying amount exceeding 0.5% of the Group's
noncurrent assets
Non-wholly-owned subsidiary with the book
value of net assets attributable to minority
Significant non-wholly-owned subsidiary
shareholders exceeding 0.5% of the Group's net
assets
Long-term equity investment in a single joint
Significant joint venture or associate venture or associate with a carrying amount
exceeding 0.5% of the Group's net assets
Significant cash flows from investing Single of cash flows with the amount exceeding
activities 0.5% of the Group's total assets
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
non-common control
If the Group obtains control over one or more enterprises (or a group of assets or net assets)
and such transaction or event constitutes a business, it shall be accounted for as a business
combination. Business combinations are classified into business combination under common
control and business combination under non-common control.
For a business combination not under common control, when assessing whether the acquired
set of assets or net assets constitutes a business, the acquirer may consider applying the
“concentration test” as a simplified assessment. If the acquired set passes the concentration
test, it shall be determined not to constitute a business. If it does not pass the concentration
test, it shall be assessed against the business criteria.
When the Group acquires a set of assets or net assets that does not constitute a business, the
acquisition cost shall be allocated to the identifiable assets and liabilities acquired at their
relative fair values on the acquisition date, rather than applying the accounting treatment for a
business combination.
A business combination under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or same multiple parties
before and after the combination, and that control is not transitory. The assets and liabilities
obtained by the combining party in the business combination shall be measured on the basis
of the carrying amount in the ultimate controlling party's consolidated financial statement as
at the combination date. Where there is a difference between the Group's share of carrying
amount of the net assets acquired and the carrying amount of the combination consideration
paid (or the total par value of the shares issued), the deficit shall be applied in sequence
against the surplus reserve and then the undistributed profits. If the stock premium in capital
surplus is not sufficient to offset, the deficit shall be applied in sequence against the surplus
reserve and then the undistributed profits. The direct related expenses incurred for the
business combination shall be included in the current profit and loss when incurred. The
combination date is the date on which the combining party actually obtains control of the
combined party.
A business combination under non-common control is a business combination in which all of
the combining parties are not ultimately controlled by the same party or same multiple parties
before and after the combination. The sum of fair values of the assets paid by the Group, as
the acquirer, (including the acquiree's equity the Group held before the acquisition date),
liabilities incurred or assumed, and the equity securities issued on the acquisition date in
exchange for the control over the acquiree, shall deduct the fair value of the acquiree's
identifiable net assets acquired in the combination on the acquisition date. After considering
the effect of related deferred income taxes , if the difference is positive, it shall be recognized
as goodwill; and if it is negative, it shall be included in the current profit and loss. The direct
expenses incurred for the business combination by the Group shall be included in the current
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
profit and loss. All the identifiable assets, liabilities and contingent liabilities which are
obtained from the acquiree and meet the recognition conditions shall be confirmed by the
Group on the acquisition date according to the fair value thereof. The acquisition date is the
date on which the acquirer actually obtains control of the acquiree.
For a business combination involving entities not under common control and achieved in
stages, the Group re-measures its previously-held equity interest in the acquiree to its
acquisition-date fair value, and recognizes any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. Other comprehensive income and other changes in owner's equities that can be
reclassified into profit or loss under the equity method of accounting for the equity interest of
the acquiree held before acquisition date shall be transferred to current investment income on
the purchase date; and if equity interests of the acquiree held before acquisition date are
equity instrument investments measured at fair value with changes recognized in other
comprehensive income, other comprehensive income recognized before acquisition date shall
be transferred to retained earnings on acquisition date.
statement
The consolidation scope of the consolidated financial statements is determined based on
control, including the Company and its controlled subsidiaries. Control refers to the Group's
power over the investee, enjoying variable returns through participation in related activities
of the investee, and having the ability to use its power over the investee to influence its return
amount. When determining whether the Group has power over the investee, the Group only
considers substantive rights related to the investee (including substantive rights enjoyed by
the Group itself and other parties). The financial condition, operating performance, and cash
flows of the subsidiaries shall be included in the consolidated financial statements from the
date of control to the date of control termination.
The equity, profit and loss, and total comprehensive income attributable to minority
shareholders of the subsidiaries shall be separately presented in the shareholders' equity
section of the consolidated balance sheet and the net profit and total comprehensive income
section of the consolidated profit statement.
If the current losses shared by minority shareholders of the subsidiaries exceed their share of
the subsidiaries' initial owner's equity, the balance shall still be offset against the minority
equity.
When the accounting period or accounting policies of a subsidiary are different from those of
the Company, the Company has made necessary adjustments to the financial statements of
the subsidiary based on the Company's own accounting period or accounting policies. All
intra-group transactions and balances during the combination, including unrealized
intra-group transactions gains and losses, have been offset. If there is evidence that unrealized
losses incurred in intra-group transactions are related to impairment losses of assets, the full
amount of such losses shall be recognized.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Where a subsidiary is acquired through a business combination involving entities under
common control, when preparing the consolidated financial statements for current period,
based on the carrying amounts of the assets and liabilities of the combined subsidiary in the
financial statements of the ultimate controlling party, the combined subsidiary shall be
deemed to be included in the consolidation scope of the Company when the ultimate
controlling party of the Company begins to exercise control over it, and the initial balance
and the comparative figures of the consolidated financial statements shall be correspondingly
adjusted.
Where a subsidiary is acquired through a business combination involving entities not under
common control, when preparing the consolidated financial statements for current period,
based on the fair value of identifiable assets and liabilities of the acquired subsidiary
determined on the acquisition date, the acquired subsidiary shall be included in the
consolidation scope of the Company from the acquisition date.
When the Group loses control over a subsidiary, any resulting disposal gains or losses are
recognized as investment income for the current period. The remaining equity investment is
re-measured at its fair value at the date when control is lost, any resulting gains or losses are
also recognized as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages, the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;
- one arrangement considered on its own is not economically justified, but it is
economically justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in
subsidiaries where control is retained.
If each of the multiple transactions forms part of a bundled transaction, each transaction shall
be treated as a transaction for disposing of the existing subsidiary and losing control. The
difference between the disposal price and the net carrying value of the subsidiary that is
continuously calculated from the acquisition date corresponding to the disposal investment
before losing control shall be included in other comprehensive income in the consolidated
financial statements, and be transferred when losing control to profit or loss of the period
losing control.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
The difference between the cost of long-term equity investment acquired by the Company
through the purchase of minority equity and the net asset share of the subsidiary calculated
based on the newly increased shareholding ratio, as well as the difference between the
disposal price obtained from partial disposal of equity investment in the subsidiary without
losing control and the net asset share of the subsidiary corresponding to the disposal of
long-term equity investment, shall be adjusted to the capital reserve (share premium) in the
consolidated balance sheet. And if the capital reserve (share premium) is insufficient to
offset, the deficit shall be applied in sequence against the surplus reserve and then the
undistributed profits.
Cash and cash equivalents comprise cash on hand, deposits that can be used for payment at
any time, and short-term highly liquid investments which are readily convertible into known
amount of cash with an insignificant risk of changes in value.
When the Group receives capital in foreign currencies from investors, the capital is translated
to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency
transactions are, on initial recognition, translated to Renminbi at the spot exchange rates.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognized in current profit or loss, unless they arise from the re-translation of the principal
and interest of specific borrowings for the acquisition and construction of qualifying assets.
Non-monetary items that are measured at historical cost in foreign currencies are translated to
Renminbi using the exchange rate at the transaction date.
In translating the financial statements of a foreign operation, assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.
Equity items, excluding undistributed profit and the translation differences in other
comprehensive income, are translated to Renminbi at the spot exchange rates at the
transaction date. Income and expenses in the income statement are translated to Renminbi at
the spot exchange rates at the transaction date. The resulting translation differences generated
by the above conversion are recognized in other comprehensive income. The translation
differences accumulated in other comprehensive income with respect to a foreign operation
are transferred to profit or loss in the period when the foreign operation is disposed.
Financial instruments include cash at bank and on hand, investments in debt and equity
securities other than those classified as long-term equity investments, receivables, payables,
loans and borrowings and share capital.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
A financial asset and financial liability is recognized in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.
A financial asset (unless it is a trade receivable without a significant financing component)
and financial liability is measured initially at fair value. For financial assets and financial
liabilities at fair value through profit or loss, any related directly attributable transaction costs
are charged to profit or loss; for other categories of financial assets and financial liabilities,
any related attributable transaction costs are included in their initial costs. Accounts
receivable containing no significant financing component or not considering financing
component of contracts that do not exceed one year are measured initially at transaction
prices determined by the accounting policies set out in Note 5.22.
(a) Classification of financial assets of this Group
The classification of financial assets is generally based on the business model in which a
financial asset is managed and its contractual cash flow characteristics. On initial recognition,
a financial asset is classified as measured at amortized cost, at fair value through other
comprehensive income (“FVOCI”), or at fair value through profit or loss (“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets in which case all affected financial
assets are reclassified on the first day of the first reporting period following the change in the
business model.
A financial asset is measured at amortized cost if it meets both of the following conditions
and is not designated as at FVTPL:
-it is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is
not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may
irrevocably elect to present subsequent changes in the investment's fair value in other
comprehensive income. This election is made on an investment-by-investment basis. The
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
instrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortized cost or FVOCI as described above
are measured at FVTPL. On initial recognition, the Group may irrevocably designate a
financial asset that otherwise meets the requirements to be measured at amortized cost or at
FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.
The business model refers to how the Group manages its financial assets in order to generate
cash flows. That is, the Group's business model determines whether cash flows will result
from collecting contractual cash flows, selling financial assets or both. The Group determines
the business model for managing the financial assets according to the facts and based on the
specific business objective for managing the financial assets determined by the Group's key
management personnel.
In assessing whether the contractual cash flows are solely payments of principal and interest,
the Group considers the contractual terms of the instrument. For the purposes of this
assessment, ‘ principal' is defined as the fair value of the financial asset on initial
recognition. ‘Interest' is defined as consideration for the time value of money and for the
credit risk associated with the principal amount outstanding during a particular period of time
and for other basic lending risks and costs, as well as a profit margin. The Group also
assesses whether the financial asset contains a contractual term that could change the timing
or amount of contractual cash flows such that it would not meet this condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognized in profit or loss unless the financial
assets are part of a hedging relationship.
- Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method.
A gain or loss on a financial asset that is measured at amortized cost and is not part of a
hedging relationship shall be recognized in profit or loss when the financial asset is
derecognized and reclassified, through the amortization process or in order to recognize
impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the
effective interest method, impairment and foreign exchange gains and losses are recognized
in profit or loss. Other net gains and losses are recognized in other comprehensive income.
On derecognition, gains and losses accumulated in other comprehensive income are
reclassified to profit or loss.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income in
profit or loss. Other net gains and losses are recognized in other comprehensive income. On
derecognition, gains and losses accumulated in other comprehensive income are reclassified
to retained earnings.
Financial liabilities are classified as measured at FVTPL or amortized cost by the Group.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses, including any interest expense, are recognized in profit or loss, unless the financial
liabilities are part of a hedging relationship.
- Financial liabilities at amortized cost
These financial liabilities are subsequently measured at amortized cost using the effective
interest method.
Financial assets and financial liabilities are generally presented separately in the balance
sheet, and are not offset. However, a financial asset and a financial liability are offset and the
net amount is presented in the balance sheet when both of the following conditions are
satisfied:
- The Group currently has a legally enforceable right to set off the recognized amounts；
- The Group intends either to settle on a net basis, or to realize the financial asset and settle
the financial liability simultaneously.
Financial asset is derecognized when one of the following conditions is met:
- the contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or
- the financial asset has been transferred, although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset, it does not retain
control over the transferred asset.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the
difference between the two amounts below is recognized in current profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and, when the transferred
financial asset is a debt investment at FVOCI, any cumulative gain or loss that has been
recognized directly in other comprehensive income for the part derecognized.
The Group derecognizes a financial liability (or part of it) only when its contractual
obligation (or part of it) is extinguished.
The Group recognizes loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortized cost;
- financial investments at fair value through other comprehensive income.
Financial assets measured at fair value, including debt investments or equity securities at
FVPL, equity securities designated at FVOCI and derivative financial assets, are not subject
to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity
in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.
ECLs within the next 12 months refers to the ECLs that may occur due to a financial
instrument default event within 12 months after the balance sheet date (if the expected
duration of the financial instrument is less than 12 months, it is within the expected duration),
and is a part of the ECLs for the entire duration.
For bills receivable, accounts receivable, accounts receivable financing generated from daily
business activities such as selling goods and providing services, loss allowance always
measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated
using a provision matrix based on the Group's historical credit loss experience, adjusted for
factors that are specific to the debtors and an assessment of both the current and forecast
general economic conditions at the balance sheet date.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
For assets other than bills receivable, accounts receivable, accounts receivable financing that
meet one of the following conditions, loss allowance are measured at an amount equal to
equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
or
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.
Bad debt provision for accounts receivable
(a) Combination categories and determination criteria for bad debt provision based on credit
risk characteristics
According to the different credit risk characteristics of the acceptor, the Group divides
Bills receivable bills receivable into two combinations: bank acceptance bills and commercial
acceptance bills.
Based on the historical experience of this Group, there is no significant difference in
the occurrence of losses among different segmented customer groups. Therefore, this
Accounts
Group considers all accounts receivable as a combination and does not further
receivable
differentiate between different customer groups when calculating the bad debt
provision for accounts receivable.
The accounts receivable financing of this Group is for accounts receivable bank
Accounts
acceptance bills with dual holding purposes. Due to the fact that the accepting banks
receivable
are all banks with high credit ratings, this Group considers all accounts receivable
financing
financing as a combination.
The other receivables of this Group mainly include deposits receivable and security
deposits. Based on the nature of accounts receivable and the credit risk characteristics
Other receivables of different counterparties, the Group divides other accounts receivable into two
combinations, namely: combination of deposits receivable and security deposits, and
combination of other accounts receivable.
(b) Determination criteria for single provision of bad debt reserves based on individual
provision
For bills receivable, accounts receivable, accounts receivable financing, and other accounts
receivable, the Group usually measures its loss provision based on a combination of credit
risk characteristics. If the credit risk characteristics of a counterparty are significantly
different from those of other counterparties in the portfolio, or if there is a significant change
in the credit risk characteristics of that counterparty, a separate provision for loss shall be
made for accounts receivable from that counterparty. For example, when a counterparty
experiences serious financial difficulties and the ECL rate of accounts receivable from that
counterparty is significantly higher than the ECL rate of its aging range, a separate provision
for loss shall be made for it.
Financial instruments that have low credit risk
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
The credit risk on a financial instrument is considered low if the financial instrument has a
low risk of default, the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and adverse changes in economic and business conditions in the
longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its
contractual cash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since
initial recognition, the Group assesses whether the credit risk of a financial instrument has
increased significantly since initial recognition by comparing the risk of default at the
balance sheet date with that at the date of initial recognition.
When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating ECL, the Group considers reasonable and
supportable information that is relevant and available without undue cost or effort, including
forward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument's external or
internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological, market, economic or legal environment
that have a significant adverse effect on the debtor's ability to meet its obligation to the
Group.
The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than 30 days past due.
Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried at amortized
cost and debt investments at FVOCI are credit-impaired. A financial asset is
‘credit-impaired' when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred. Evidence that a financial asset is
credit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract, such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower's financial difficulty, the
Group having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganization; or
- the disappearance of an active market for that financial asset because of financial
difficulties.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Presentation of allowance for ECL
ECLs are re-measured at each balance sheet date to reflect changes in the financial
instrument's credit risk since initial recognition. Any change in the ECL amount is recognized
as an impairment gain or loss in profit or loss. The Group recognizes an impairment gain or
loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account, except for debt investments that are measured at FVOCI,
for which the loss allowance is recognized in other comprehensive income.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However, financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group's procedures for recovery of
amounts due.
Subsequent recoveries of an asset that was previously written off are recognized as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
The consideration received from the issuance of equity instruments is recognized in
shareholders' equity at the actual issue price, with the related transaction costs deducted from
shareholders' equity (capital reserve). And if the capital reserve (share premium) is
insufficient to offset, the deficit shall be applied in sequence against the surplus reserve and
then the undistributed profits. Consideration and transaction costs paid by the Company for
repurchasing self-issued equity instruments are deducted from shareholders' equity.
When the Company repurchases its own shares, those shares are treated as treasury shares.
All expenditure relating to the repurchase is recorded in the cost of the treasury shares, with
the transaction recording in the share register. Treasury shares are excluded from profit
distributions and are presented as a deduction under shareholders' equity in the balance sheet.
Upon the cancellation of treasury shares, share capital shall be reduced by the total par value
of the shares cancelled. Where the cost of the treasury shares exceeds their total par value, the
excess shall be applied in sequence against the capital reserve (share premium), the surplus
reserve and then the undistributed profits. Where the cost of the treasury shares is lower than
their total par value, the shortfall shall be credited to the capital reserve (share premium).
Inventories include raw materials, work in progress and reusable materials. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase, costs of
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
conversion and other expenditure incurred in bringing the inventories to their present location
and condition. In addition to the purchase cost of raw materials, work in progress and
finished goods include direct labor costs and an appropriate allocation of production
overheads.
Agricultural products harvested are reported in accordance with the Accounting Standard for
Business Enterprises No. 1 - Inventories.
Cost of inventories is calculated using the weighted average method.
The Group maintains a perpetual inventory system.
Consumables including low-value consumables and packaging materials are amortized when
they are used. The amortization charge is included in the cost of the related assets or
recognized in profit or loss for the current period.
inventories
At the balance sheet date, inventories are carried at the lower of cost and net realizable value.
Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and relevant
taxes. The net realizable value of materials held for use in the production is measured based
on the net realizable value of the finished goods in which they will be incorporated. The net
realizable value of the inventory held to satisfy sales or service contracts is measured based
on the contract price, to the extent of the quantities specified in sales contracts, and the excess
portion of inventories is measured based on general selling prices.
Any excess of the cost over the net realizable value of each item of inventories is recognized
as a provision for impairment, and is recognized in profit or loss.
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combination
involving entities under common control is the Company's share of the carrying amount of
the subsidiary's equity in the consolidated financial statements of the ultimate controlling
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
party at the combination date. The difference between the initial investment cost and the
carrying amount of the consideration given is adjusted to the share premium in the capital
reserve, with any deficit applied in sequence against the surplus reserve and then the
undistributed profits. For a long-term equity investment in a subsidiary acquired through a
business combination achieved in stages which do not form a bundled transaction and
involving entities under common control, the Company determines the initial cost of the
investment in accordance with the above policies. The difference between this initial cost and
the sum of the carrying amount of previously-held investment and the consideration paid for
the shares newly acquired is adjusted to capital premium in the capital reserve, with any
deficit applied in sequence against the surplus reserve and then the undistributed profits .
- For a long-term equity investment obtained through a business combination not involving
enterprises under common control, the initial cost comprises the aggregate of the fair value of
assets transferred, liabilities incurred or assumed, and equity securities issued by the
Company, in exchange for control of the acquiree. For a long-term equity investment
obtained through a business combination not involving entities under common control and
achieved through multiple transactions in stages which do not form a bundled transaction, the
initial cost comprises the carrying amount of the previously-held equity investment in the
acquiree immediately before the acquisition date, and the additional investment cost at the
acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is
initially recognized at the amount of cash paid if the Group acquires the investment by cash,
or at the fair value of the equity securities issued if an investment is acquired by issuing
equity securities.
investment
(a) Investments in subsidiaries
In the Company's separate financial statements, long-term equity investments in subsidiaries
are accounted for using the cost method unless the investment is classified as held for sale.
Except for cash dividends or profit distributions declared but not yet distributed that have
been included in the price or consideration paid in obtaining the investments, the Company
recognizes its share of the cash dividends or profit distributions declared by the investee as
investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less impairment losses.
For the impairment testing method and impairment provision method of the investments in
subsidiaries, refer to Note 5.21.
In the Group's consolidated financial statements, subsidiaries are accounted for in accordance
with the policies described in Note 5.6.
(b) Investments in joint ventures and associates
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
A joint venture is an arrangement whereby the Group and other parties have joint control and
rights to the net assets of the arrangement.
An associate is an enterprise the Group can exert significant influence on.
A long-term equity investment in a joint venture and associate is accounted for using the
equity method for subsequent measurement, unless the investment is classified as held for
sale.
The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group's interest in the
fair value of the investee's identifiable net assets at the date of acquisition, the investment is
initially recognized at cost. Where the initial investment cost is less than the Group's interest
in the fair value of the investee's identifiable net assets at the date of acquisition, the
investment is initially recognized at the investor's share of the fair value of the investee's
identifiable net assets, and the difference is recognized in current profit or loss.
- After the acquisition of the investment in joint ventures and associates, the Group
recognizes its share of the investee's profit or loss and other comprehensive income as
investment income or losses and other comprehensive income respectively, and adjusts the
carrying amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions, the carrying amount of the investment is reduced by the
amount attributable to the Group. Changes in the Group's share of the investee's owners'
equity, other than those arising from the investee's net profit or loss, other comprehensive
income or profit distribution (referred to as“other changes in owners' equity”), is recognized
directly in the Group's equity, and the carrying amount of the investment is adjusted
accordingly.
- In calculating its share of the investee's net profits or losses, other comprehensive income
and other changes in owners' equity, the Group recognizes investment income and other
comprehensive income after making appropriate adjustments to align the accounting policies
or accounting periods with those of the Group based on the fair value of the investee's
identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from
transactions between the Group and its associates or joint ventures are eliminated to the
extent of the Group's interest in the associates or joint ventures. Unrealized losses resulting
from transactions between the Group and its associates or joint ventures are eliminated in the
same way as unrealized gains but only to the extent that there is no impairment.
- The Group discontinues recognizing its share of further losses of the investee after the
carrying amount of the long-term equity investment and any long-term interest that in
substance forms part of the Group's net investment in the associate is reduced to zero, except
to the extent that the Group has an obligation to assume additional losses. If the joint venture
or the associate subsequently reports net profits, the Group resumes recognizing its share of
those profits only after its share of the profits equals the share of losses not recognized.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
For the impairment testing method and impairment provision method of the investments in
joint ventures and associates of this Group, refer to Note 5.21.
investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about the relevant activities (activities with significant impact on the
returns of the arrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group can exercise
joint control over an investee:
- Whether no single participant party is in a position to control the investee's related
activities unilaterally;
- Whether strategic decisions relating to the investee's related activities require the
unanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy
decisions of an investee but does not have control or joint control over those policies.
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost model and
stated in the balance sheet at cost less accumulated depreciation, amortization and
impairment losses, and adopts a depreciation or amortization policy for the investment
property which is consistent with that for buildings or land use rights, unless the investment
property is classified as held for sale. For the impairment testing method and impairment
provision method, refer to Note 5.21.
Residual value rate Annual depreciation
Category Useful life (years)
(%) rate (%)
Plant and buildings 20-40 years 0-5% 2.4%-5.0%
Fixed assets represent the tangible assets held by the Group for use in production of goods,
supply of services, for rental or for administrative purposes with useful lives over one
accounting year.
The initial cost of a purchased fixed asset comprises the purchase price, related taxes, and
any attributable expenditure for bringing the asset to working condition for its intended use.
The initial cost of self-constructed fixed assets is measured in accordance with the policy set
out in Note 5.15.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Where the parts of an item of fixed assets have different useful lives or provide benefits to the
Group in a different pattern, thus necessitating use of different depreciation rates or methods,
each part is recognized as a separate fixed asset.
For any subsequent cost of fixed assets, including the cost of replacing part of an item of
fixed assets, when it is probable that the economic benefits associated with the costs will flow
to the Group, it shall be capitalized and included in the cost of fixed assets, and the carrying
amount of the replaced part is derecognized meanwhile; and the costs related to the
day-to-day maintenance of fixed assets shall be recognized in current profit or loss as
incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
The cost of a fixed asset, less its estimated residual value and accumulated impairment losses,
is depreciated using the straight-line method over its estimated useful life, unless the fixed
asset is classified as held for sale.
The useful lives, residual value rates and annual depreciation rates of each class of fixed
assets are as follows:
Residual value rate Annual depreciation rate
Class Useful life (years)
(%) (%)
Plant and buildings 20-40 years 0-5% 2.4%-5.0%
Machinery equipment 5-30 years 0-5% 3.2%-20.0%
Motor vehicles 4-12 years 0-5% 7.9%-25.0%
Useful lives, estimated residual values and depreciation methods are reviewed at least at each
year-end.
The Group will derecognize of a fixed asset when meeting one of the following conditions:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying amount of
the item, and are recognized in profit or loss on the date of retirement or disposal.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
The cost of self-constructed fixed assets includes the cost of materials, direct labor,
capitalized borrowing costs, and necessary costs attributable to bringing the asset to working
condition for its intended use.
A self-constructed fixed asset is classified as construction in progress and transferred to fixed
asset when it is ready for its intended use. No depreciation is provided against construction in
progress.
Criteria and timing for transfer of construction in progress to fixed assets
Category Criteria and Timing for Transfer to fixed assets
(1) The main construction and supporting works have been
substantially completed; (2) The construction meets the
design specifications and has passed inspections by the
surveying, design, construction, and supervision and other
institutions; (3) Acceptance inspections have been completed
Buildings and
by external authorities such as fire safety, land, and planning
Structures
departments; (4) If the construction reaches the intended
usable condition but the completion settlement has not yet
been finalized, it shall be transferred to fixed assets from the
date it reaches the intended usable condition, based on the
estimated construction cost.
(1) Relevant equipment and other supporting facilities have
been fully installed; (2) The equipment has been tested and
can maintain normal and stable operation over a period of
Machinery and
time; (3) The production equipment can produce qualified
Equipment
products consistently over a period of time; (4) The
equipment has been accepted by asset management
personnel and users.
Construction in progress is stated in the balance sheet at cost less impairment losses (see
Note 5.21).
If an enterprise sells products or by-products produced by fixed assets before they reach their
intended usable state to the outside parties, in accordance with the provisions of Accounting
Standards for Business Enterprises No. 14 – Revenue and Accounting Standards for
Business Enterprises No. 1 – Inventories, relevant income and costs shall be accounted for
separately and included in profit or loss for the current period.
Borrowing costs incurred directly attributable to the acquisition, and construction or
production of a qualifying asset are capitalized as part of the cost of the asset. Other
borrowing costs are recognized as financial expenses when incurred.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
During the capitalization period, the amount of interest (including amortization of any
discount or premium on borrowing) to be capitalized in each accounting period is determined
as follows:
- Where funds are borrowed specifically for the acquisition and construction or production
of a qualifying asset, the amount of interest to be capitalized is the interest expense calculated
using effective interest rates during the period less any interest income earned from
depositing the borrowed funds or any investment income on the temporary investment of
those funds before being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisition
and construction or production of a qualifying asset, the amount of borrowing costs eligible
for capitalization is determined by applying a capitalization rate to the weighted average of
the excess amounts of cumulative expenditure on the asset over the above amounts of
specific borrowings. The capitalization rate is the weighted average of the interest rates
applicable to the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or, when appropriate, a shorter period to
the initially recognized amount of the borrowings.
During the capitalization period, exchange differences related to the principal and interest on
a specific-purpose borrowing denominated in foreign currency are capitalized as part of the
cost of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognized as a
financial expense when incurred.
The capitalization period is the period from the date of commencement of capitalization of
borrowing costs to the date of cessation of capitalization, excluding any period over which
capitalization is suspended. Capitalization of borrowing costs commences when expenditure
for the asset is being incurred, borrowing costs are being incurred and activities of
acquisition, construction or production that are necessary to prepare the asset for its intended
use are in progress, and ceases when the assets become ready for their intended use.
Capitalization of borrowing costs should cease when the qualifying asset being constructed or
produced has reached its expected usable or saleable condition. Capitalization of borrowing
costs is suspended when the acquisition, construction or production activities are interrupted
abnormally for a period of more than three months.
The biological assets of the Group are productive biological assets.
Productive biological assets are biological assets held for the purposes of producing
agricultural produce, rendering of services or rental. Productive biological assets in the Group
are vines. Productive biological assets are initially measured at cost. The cost of self-grown
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
or self-bred productive biological assets represents the necessary attributable expenditure
incurred before satisfying the expected production and operating purpose, including
capitalized borrowing costs.
Productive biological assets, after reaching the expected production and operating purpose,
are depreciated using the straight-line method over its useful life. The useful lives, estimated
net residual value rates and annual depreciation rates of productive biological assets are as
follows:
Estimated net residual rate Annual depreciation rate
Category Useful life (years)
(%) (%)
Vines 20 years 0% 5.0%
The Group evaluates the useful life and expected net residential value by considering the
normal producing life of the productive biological assets.
Useful lives, estimated residual values and depreciation methods of productive biological
assets are reviewed at least at each year-end. Any changes should be treated as changes in
accounting estimates.
For a productive biological asset that has been sold, damaged, dead or destroyed, any
difference between the disposal proceeds and the carrying amount of the asset (after tax
deduction) should be recognized in profit or loss for the period in which it arises.
Service life and amortization method
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where
the estimated useful life is finite) and impairment losses (see Note 5.21). For an intangible
asset with finite useful life, its cost estimated less residual value and accumulated impairment
losses is amortized on the straight-line method over its estimated useful life, unless the
intangible asset is classified as held for sale.
The respective service life, determination basis, and amortization method for intangible
assets are as follows:
Item Useful life (years) Determination basis Amortization method
Land use right 40 – 50 years Period of land use rights Straight-line method
The shorter one of software
Software use right 5 – 10 years service life or expected Straight-line method
service life
Trademark rights 10 years The shorter one of duration Straight-line method
of trademark rights or
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Useful life (years) Determination basis Amortization method
expected service life
The useful life and amortization method of intangible assets with limited useful life are
reviewed at least at each year-end.
An intangible asset is regarded as having an indefinite useful life and is not amortized when
there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group. At the balance sheet date, the Group had intangible assets
with infinite useful lives including the land use rights and trademarks. Land use rights with
infinite useful lives are permanent land use rights with permanent ownership held by the
Group under the relevant Chile and Australian laws arising from the Group's acquisition of
Ndomita Wine Company Chile Spa (“Chile Indomita Wine Group”), and the acquisition of
Kilikanoon Estate Pty Ltd ( “ Australia Kilikanoon Estate ” ), therefore there was no
amortization. The right to use trademark refers to the trademark held by the Group arising
from the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate
with infinite useful lives. The valuation of trademark was based on the trends in the market
and competitive environment, product cycle, and managing long-term development strategy.
Those bases indicated the trademark will provide net cash flows to the Group within an
uncertain period. The useful life is indefinite as it was hard to predict the period that the
trademark would bring economic benefits to the Group.
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer's
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.
Goodwill is not amortized and is stated in the balance sheet at cost less accumulated
impairment losses (see Note 5.21). On disposal of an asset group or a set of asset groups, any
attributable goodwill is written off and included in the calculation of the profit or loss on
disposal.
The Group recognizes expenses that have been incurred and whose benefit period exceeds
one year as long-term deferred expenses.
Long-term deferred expenses are amortized using a straight-line method within the benefit
period. The respective amortization periods for such expenses are as follows:
Item Amortization period
Land acquisition fees 50 years
Afforestation fees 5-20 years
Renovation costs 3-5 years
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Others 3 years
The carrying amounts of the following assets are reviewed at each balance sheet date based
on internal and external sources of information to determine whether there is any indication
of impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- productive biological asset
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, the
Group estimates the recoverable amounts of goodwill and intangible assets with infinite
useful lives at each year-end, irrespective of whether there is any indication of impairment.
Goodwill is allocated to each asset group, or set of asset groups, that is expected to benefit
from the synergies of the combination for the purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of its
fair value (see Note 5.21) less costs to sell and its present value of expected future cash
flows.
An asset group is composed of assets directly related to cash-generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting the
future cash flows, estimated to be derived from continuing use of the asset and from its
ultimate disposal, to their present value using an appropriate pre-tax discount rate.
An impairment loss is recognized in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognized
accordingly. Impairment losses related to an asset group or a set of asset groups are allocated
first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset
groups, and then to reduce the carrying amount of the other assets in the asset group or set of
asset groups on a pro rata basis. However, such allocation would not reduce the carrying
amount of an asset below the highest of its fair value less costs to sell (if measurable), its
present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reversed in a subsequent period.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particular
asset or liability (including the condition and location of the asset and restrictions, if any, on
the sale or use of the asset) that market participants would consider when pricing the asset or
liability at the measurement date, and uses valuation techniques that are appropriate in the
circumstances and for which sufficient data and other information are available to measure
fair value. Valuation techniques mainly include the market approach, the income approach
and the cost approach.
If the obligation related to contingencies is a current obligation undertaken by the Group, and
the performance of such obligation is likely to result in the outflow of economic benefits
from the Group, and the relevant amount can be reliably measured, the Group will recognize
the estimated liability.
The estimated liabilities are initially measured based on the best estimate of the expenses
required to fulfill the relevant current obligations. For assets that have a significant impact on
the time value of money, the estimated liability is determined by discounting the estimated
future cash flows. When determining the best estimate, the Group takes into account factors
such as risks, uncertainties, and time value of money related to contingencies. If the required
expenditure exists a continuous range, and the likelihood of various outcomes occurring
within this range is the same, the best estimate is determined based on the median value
within this range; and in other cases, the best estimate is handled as follows:
- If the contingency involves a single item, it shall be determined based on the most likely
amount to occur.
- If the contingency involves multiple items, it shall be determined based on various
possible outcomes and related probabilities.
The Group reviews the carrying amount of estimated liabilities on the balance sheet date and
adjusts the carrying amount based on the current best estimate.
The share-based payment of this Group is equity-settled share-based payment.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
- Equity-settled share-based payment
When the Group exchanges shares or other equity instruments for employee services, the
equity instruments granted to employees shall be measured at fair value on the grant date. For
share-based payment transactions that are immediately exercisable upon grant, the Group
recognizes the fair value of equity instruments as relevant costs or expenses on the grant date,
and increases capital reserves accordingly. For share-based payment transactions that can
only be exercised after completing the vesting period for services or meeting the prescribed
performance conditions after the grant, the Group will make the best estimate of the number
of feasible equity instruments on each balance sheet date during the vesting period based on
subsequent information such as changes in the number of feasible employees. Based on this,
the services obtained in the current period will be included in relevant costs or expenses
according to the fair value of the equity instruments on the grant date, and correspondingly
included in capital reserves.
When the Group accepts services but does not have settlement obligations, and the equity
instruments granted to employees are those of the ultimate controlling party of the Company
or its controlled subsidiaries other than the Group, the Group will treat this share-based
payment plan as a share-based payment for equity settlement.
Revenue refers to the gross inflow of economic benefits formed during the course of the
ordinary activities of the Group, which may increase the shareholders' equities and is
irrelevant to the invested capital of the shareholders.
The Group recognizes the revenue upon fulfillment of its performance obligations in the
contract, that is, the client obtains control right over the relevant goods or services.
If there are two or more performance obligations under the contact, which shall be fulfilled,
the Group will apportion the transaction price to various individual performance obligations
in accordance with the relative proportion of separate selling prices of various goods or
services under these performance obligations on the commencement date of the contract, and
measure and recognize the revenue in accordance with the transaction prices apportioned to
various individual performance obligations. The stand-alone selling price refers to the price at
which the Group sells goods or provides services to customers separately. If the stand-alone
selling price cannot be directly observed, the Group comprehensively considers all the
relevant information that can be reasonably obtained, and uses observable input values to the
greatest extent to estimate the stand-alone selling price.
For contracts with quality assurance clauses, the Group analyzes the nature of the quality
assurance provided. If quality assurance provides a separate service in addition to ensuring to
the client that the goods sold meet the established standards, the Group will treat it as an
individual performance obligation. Otherwise, the Group conducts accounting treatment in
accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.
The transaction price refers to the amount of consideration that the Group expects to be
entitled to receive due to the transfer of goods or services to the client, excluding payments
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
received on behalf of third parties. The transaction price recognized by the Group does not
exceed the amount at which the accumulated recognized revenue will most likely not undergo
a significant reversal when the relevant uncertainty is eliminated. In the event that there is a
significant financing part in the contract, the Group determines the transaction price based on
the amount payable in cash when the client obtains control right over the relevant goods or
services. The difference between the transaction price and the contract consideration shall be
amortized by the effective interest method during the contract period. From the day of the
enforcement of the contract, the Group expects that the interval between the client's
acquisition of control right over the goods or services and the client's payment of the price
will not exceed one year, regardless of the significant financing part in the contract.
If the Group meets one of the following conditions, the fulfillment of its performance
obligations in a certain period will be deemed, or the fulfillment of its performance
obligations at a certain time point will be deemed:
- The client obtains and consumes the economic benefits while the Group fulfills the
performance obligation;
- The client manages to control the goods in process while the Group fulfills the
performance obligation.
- Goods produced during the performance period have irreplaceable purposes and the
Group is entitled to charge money for the performance accumulated and has been finished
until the current time within the whole contract period.
For any performance obligations fulfilled in a certain period, the Group will recognize
revenue within the certain period in accordance with the performance progress. If the
performance progress cannot be determined reasonably and costs incurred are expected to be
compensated of the Group, the revenue will be ascertained according to the costs incurred
until the performance progress is determined reasonably.
In terms of performance obligations fulfilled at a certain time point, the Group will recognize
revenue when the client gains control right over the relevant goods or services. When it
comes to determining whether a client has acquired the control right over goods or services,
the Group will consider the following conditions:
- The Group has the current right to receive payment for the goods or services;
- The Group has transferred the goods in kind to the client;
- The Group has transferred the legal ownership of the product or the main risks and
rewards of ownership to the client;
- The client has accepted the goods or services, etc.
For sales with sales return clauses, when the customer obtains control of the relevant goods,
the Group recognizes revenue based on the amount of consideration expected to be entitled to
receive due to the transfer of goods to the customer (that is, does not include the expected
amount to be refunded due to sales return), and recognizes liabilities based on the expected
amount to be refunded due to sales returns. At the same time, based on the book value at the
time of transfer of the goods expected to be returned, the Group recognizes as an asset the
balance after deducting the estimated cost of recovering the goods (including the value
impairment of the returned goods). On each balance sheet date, the Group re-estimates the
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
future sales returns. If there is any change, it shall be treated as a change in accounting
estimates.
The Group has transferred the goods or services to the client and thus has the right to receive
corresponding consideration (and the right is dependable on factors other than time lapses) as
contract asset, which is subject to provision of impairment on the basis of expected credit
loss. The right enjoyed by the Group (only depends on time lapses) to receive consideration
unconditionally from the client shall be presented under account receivables. The Group
presents the obligation of transferring goods or services for the client due to the consideration
received or receivable as contract liabilities.
The specific accounting policies related to the main activities of the Group's revenue are
described as follows:
The Group's sales revenue mainly comes from dealer sales. The revenue will be recognized
when the Group transfers control of the related products to the customer. According to the
business contract, for these transfers, the time when the product is confirmed and signed by
the customer shall be recognized as the confirming point of the sales revenue.
Contract cost includes incremental cost for being awarded the contract and performance cost
of the contract.
Incremental cost for being awarded the contract refers to the cost that the Group would not
need to pay if no such contracts are awarded (e.g. sales commissions, etc.) Where such cost is
expected to be recovered, the Group shall take it as the contract acquisition cost and
recognize it as an asset. Expenses incurred by the Group to be awarded contract other than
incremental cost expected to be recovered shall be recognized in current profits and losses
when incurred.
Any cost incurred by the Group for the performance of any contract that doesn't fall into the
scope of other businesses specified in the Standard such as inventory, but meets the following
conditions simultaneously, shall be taken as contract performance cost and recognized as an
asset.
- Where such cost is directly related to a current or anticipated contract, including direct
labor cost, direct material cost, manufacturing expenses (or similar expenses), costs clearly
specified to be borne by the customer and other costs incurred solely due to the contract;
- Where such cost includes resources to be used by the Group to fulfill future performance
obligations;
- Where such cost is expected to be recovered.
Assets recognized for contract acquisition cost and assets recognized for contract
performance cost (hereinafter referred to as “ assets related to contract cost ” ) shall be
amortized on the same basis as the revenue recognition of goods or services related to such
assets and recognized in current profits and losses. Where the amortization period of assets
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
recognized for the contract acquisition cost does not exceed one year, they shall be
recognized in current profits and losses.
Where the book value of assets related to contract costs is higher than the difference between
the following two items, the Group shall withdraw the impairment reserves of the excess part
and recognize it as the asset impairment loss:
- Residual consideration expected to be obtained arising from the transfer of goods or
services related to the assets by the Group;
- Cost estimated to be occurred for the transfer of the relevant goods or services.
Employee wages or salaries, bonuses, social security contributions such as medical insurance,
work injury insurance, maternity insurance and housing fund, measured at the amount
incurred or accrued at the applicable benchmarks and rates, are recognized as a liability as the
employee provides services, with a corresponding charge to profit or loss or included in the
cost of assets where appropriate.
Pursuant to the relevant laws and regulations of the People's Republic of China, the Group
participated in a defined contribution basic pension insurance plan in the social insurance
system established and managed by government organizations. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks and rates
stipulated by the government. Basic pension insurance contributions payable are recognized
as a liability as the employee provides services, with a corresponding charge to profit or loss
or included in the cost of assets where appropriate.
When the Group terminates the employment with employees before the employment
contracts expire, or provides compensation under an offer to encourage employees to accept
voluntary redundancy, a provision is recognized with a corresponding expense in profit or
loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because
of an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carry
out the restructuring by starting to implement that plan or announcing its main features to
those affected by it.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the
government to the Group except for capital contributions from the government in the
capacity as an investor in the Group.
A government grant is recognized when there is reasonable assurance that the grant will be
received and that the Group will comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase, construct or otherwise acquire long-term assets.
Government grants related to income are grants other than those related to assets. A
government grant related to an asset is recognized as deferred income and amortized over the
useful life of the related asset on a reasonable and systematic manner as other income or
non-operating income. A grant that compensates the Company for expenses or losses to be
incurred in the future is recognized as deferred income, and included in other income or
non-operating income in the periods in which the expenses or losses are recognized, or
included in other income or non-operating income directly.
Current tax and deferred tax are recognized in profit or loss except to the extent that they
relate to a business combination or items recognized directly in equity (including other
comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable income
for the year, plus any adjustment to tax payable in respect of previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the Group has a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realize the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively, being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases, which include the deductible
losses and tax credits carried forward to subsequent periods. Deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilized.
Deferred tax is not recognized for the temporary differences arising in a single transaction
that is not a business combination, and affects neither accounting profit nor taxable profit (or
deductible loss) at the time of the transaction, and the initially recognized assets and
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
liabilities do not result in equal taxable temporary differences or deductible temporary
differences. Deferred tax is not recognized for taxable temporary differences arising from the
initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences that would
follow from the expected manner of recovery or settlement of the carrying amounts of the
assets and liabilities, using tax rates enacted at the balance sheet date that are expected to be
applied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilized.
Such reduction is reversed to the extent that it becomes probable that sufficient taxable
profits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of the
following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current
tax assets;
- they relate to income taxes levied by the same tax authority on either: the same taxable
entity; or different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis, or to realize the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax liabilities
or deferred tax assets are expected to be settled or recovered.
Lease refers to a contract in which it is agreed that the lessor conveys the use right of any
asset to the lessee for a period of time in exchange for consideration.
On the contract start date, the Group shall evaluate whether the contract is, or contains, a
lease. Where either party thereto conveys the right to control the use of one or more identified
assets for a period of time in exchange for consideration, the contract is, or contains a lease.
To determine whether the contract conveys the right to control the use of identified assets for
a period of time, the Group conducts the following assessments:
- Whether the contract involves the use of an identified asset. An identified asset can be
either explicitly specified in a contract, or implicitly when the asset is available to the
customer and can be a physically distinct portion, or if some capacity or other portion of the
asset is not physically distinct but substantially represents the full capacity of the asset, so
that the customer obtains substantially all of the economic benefits from the use of the asset.
If the supplier of the asset has the practical ability to substitute the asset throughout the
period of use, the asset is not an identified asset;
- Whether the lessee has the right to obtain substantially all of the economic benefits from
the use of the identified asset throughout the period of use; and
- Whether the lessee has the right to direct the use of an identified asset throughout this
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
period of use.
If the contract contains multiple separate leases at the same time, the lessee and lessor will
split the contract and have each separate lease separately subject to accounting treatment. If
the contract includes lease and non-lease parts at the same time, the lessee and the lessor will
split them separately. When splitting the lease and non-lease parts included in the contract,
the lessee shall allocate the contract consideration according to the relative proportion of the
sum of the stand-alone price of each lease part and the stand-alone price of each non-lease
part. The lessor shall allocate the contract consideration in accordance with the provisions on
transaction price allocation in the accounting policy stated in Note 5.22.
Upon the commencement of the lease term, the Group recognizes right-of-use assets and
lease liabilities for leases. The right-of-use assets are initially measured at cost, including
initially measured amount of leased liability; amount of lease payments made on or before
the commencement date of the lease term (the related amount of lease incentive having been
enjoyed shall be deducted); initial direct costs incurred and costs that the Group expects to
incur to disassemble and remove leased assets, restore the site where leased assets are located
or restore leased assets to the agreed condition under the terms of the lease. The Group
employs the straight-line method to depreciate right-of-use assets. Where it can be reasonably
recognized that the ownership of leased assets will be obtained by the Group upon expiration
of the lease term, leased assets will be depreciated during the service life; otherwise, leased
assets will be depreciated during the lease term or the remaining service life of such leased
assets by the Group, whichever is shorter. Right-of-use assets shall be provided for
impairment in accordance with the accounting policies stated in Note 5.21.
When initially calculating the present value of the unpaid lease payment at the
commencement date of the lease term, the Group shall employ the interest rate implicit in the
lease as the discount rate; where the interest rate implicit in the lease cannot be determined,
the incremental lending rate of the Group shall be used as the discount rate.
The Group calculates the interest expense of lease liabilities in each period of the lease term
according to a fixed periodic rate, which will be included in current profits and losses or asset
cost. The variable lease payment not included in the measurement of lease liabilities shall be
recognized in current profits and losses and loss or related asset cost when they actually
occur.
In case of any of following circumstances after the commencement date of the lease term, the
Group will re-measure lease liabilities at the present value of the lease payment after any
change:
- Where the amount payable anticipated changes according to the guaranteed residual
value;
- Where the index or ratio used for recognizing the lease payment changes;
- Where there is a change in the Group's assessment results of the option of purchase,
renewal option or option of termination of lease or the actual exercising of the termination of
the renewal option or option of termination of lease is inconsistent with the original
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
assessment result.
When the Group re-measures lease liabilities, the book value of right-of-use assets shall be
adjusted accordingly. Where the book value of right-of-use assets has been reduced to zero,
but lease liabilities still need to be subject to further reduction, the remaining amount shall be
recognized in current profits and losses.
The Group does not recognize right-of-use assets and leased liabilities for short-term lease
(lease with a lease term within 12 months) and lease of low-value assets. The Group shall
include related lease payment into the current profits and losses or relevant asset costs
according to the straight-line method in each period of the lease term.
From the inception of lease, the Group will divide leases into finance lease and operating
lease. Finance lease refers to a lease in which almost all the risks and returns related to the
ownership of the leased asset are essentially transferred, regardless of whether the ownership
is finally transferred or not. Operating lease refers to other leases except for the finance lease.
When the Group is the sublease lessor, the sublease shall be classified based on the
right-of-use assets arising from the original lease rather than the underlying assets of the
original lease. If the original lease is a short-term lease and the Group elects to apply the
above-mentioned simplified treatment of short-term lease to the original lease, the Group
shall classify the sublease as an operating lease.
For finance leases, from the commencement date of the lease term, the Group recognizes
finance lease receivables for finance leases and derecognizes the finance lease assets. The
Group regards the net investment in a lease as the entry value of finance lease receivables at
the time of initial measurement of finance lease receivables. The net investment in a lease is
the sum of the present value of unguaranteed residual value and rental receipts not received
yet on the commencement date of the lease term which is subject to discounting at the
interest rate implicit in the lease term.
The Group calculates and recognizes the interest income in each period within the lease term
according to a fixed periodic rate. Derecognition and impairment of finance lease receivables
shall be subject to accounting treatment in accordance with the accounting policies stated in
Note 5.10. The variable lease payment which is not included in the net investment in a lease
shall be recognized in current profits and losses when it actually occurs.
During each period of the lease term, the Group recognizes lease receipts from operating
leases as rental revenue by using the straight-line method. The Group capitalizes initial direct
costs pertaining to operating leases upon their occurrence, and apportions them as per the
same basis used for recognizing the rental income within the lease term and includes them in
current profits and losses by period. The variable lease receipts related to operating leases
that are not included in the lease receipts shall be recognized in current profits and losses
when they actually occur. The variable lease payment which is not included in the lease
receipts shall be recognized in current profits and losses when it actually occurs.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
The Group classified a non-current asset or disposal group as held for sale when the carrying
amount of a non-current asset or disposal group will be recovered through a sale transaction
rather than through continuing use.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, together
as a whole in a single transaction and liabilities directly associated with those assets that will
be transferred in the transaction.
A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in similar
transactions, the non-current asset or disposal group must be available for immediate sale in
their present condition subject to terms that are usual and customary for sales of such assets
or disposal groups;
- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and has
obtained a firm purchase commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carrying amount
and fair value less costs to sell (except financial assets, deferred tax assets and investment
properties subsequent measured at fair value initially and subsequently. Any excess of the
carrying amount over the fair value less costs to sell is recognized as an impairment loss in
profit or loss.
Dividends or profit distributions proposed in the profit appropriation plan, which will be
approved after the balance sheet date, are not recognized as a liability at the balance sheet
date but are disclosed in the notes separately.
If a party has the power to control, jointly control or exercise significant influence over
another party, or vice versa, or where two or more parties are subject to common control or
joint control from another party, they are considered to be related parties. Related parties may
be individuals or enterprises. Enterprises with which the Company is under common control
only from the State and that have no other related party relationships are not regarded as
related parties.
In addition to the related parties stated above, the Group determines related parties based on
the disclosure requirements of Administrative Procedures on the Information Disclosures of
Listed Companies issued by the CSRC.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
The Group is principally engaged in the production and sales of wine, brandy, and sparkling
wine in China, France, Spain, Chile and Australia. In accordance with the Group's internal
organization structure, management requirements and internal reporting system, the Group's
operation is divided into five parts: China, Spain, France, Chile and Australia. The
management periodically evaluates segment results, in order to allocate resources and
evaluate performances. In 2026, over 83% of revenue, more than 112% of profit and over
does not need to disclose additional segment report information.
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and in any future periods affected.
For significant accounting estimates of this Company, see Notes 5.3, 7, 11 and 16.
Nil
Nil
Tax category Taxation basis Tax rates
Levied on the balance between the output tax 13%, 9%, 6% (China), 20% (France),
Value added tax calculated based on taxable income and the input 21% (Spain), 19% (Chile), 10%
tax allowed to be deducted in current period. (Australia)
Consumption tax Levied on taxable income.
City development
Levied on circulation tax actually paid. 7% (China)
tax
Corporate income 25% (China), 25% (France), 28%
Levied on taxable income.
tax (Spain), 27% (Chile), 30% (Australia)
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Ningxia Changyu Grape Growing Co., Ltd. “ ( Ningxia Growing”), a subsidiary of the Group,
engaged in grape growing, is incorporated in Yongning County, Ningxia Huizu Autonomous
Region. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC
Corporate Income Tax Measures for Implementation, Ningxia Growing enjoys the
preferential policy of an exemption of corporate income tax from grape cultivation income.
Yantai Changyu Grape Growing Co., Ltd. (“Grape Growing”), a branch of the Company,
engaged in grape growing, is incorporated in Zhifu District, Yantai City, Shandong Province.
According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate
Income Tax Measures for Implementation, Grape Growing enjoys the preferential policy of
an exemption of corporate income tax from grape cultivation income.
Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co., Ltd. (“R&D
and Growing ” ), a branch of the Company, engaged in grape growing, is incorporated in
YEDA, Shandong Province. According to Clause 27 of PRC Corporate Income Tax and
Clause 86 of PRC Corporate Income Tax Measures for Implementation, R&D and Growing
enjoys the preferential policy of an exemption of corporate income tax from grape cultivation
income.
Beijing Changyu AFIP Agriculture Development Co., Ltd. (“Agriculture Development”), a
subsidiary of the Group, engaged in grape growing, is incorporated in Miyun County, Beijing.
According to clause 27 of the Corporate Income Tax Law of the People's Republic of China
and clause 86 of the Implementation Rules of Enterprise Income Tax Law of the People's
Republic of China, Agriculture Development enjoys the preferential policy of an exemption
of corporate income tax from grape cultivation income.
Xinjiang Baron Balboa Chateau Co., Ltd. (“Shihezi Chateau”), a subsidiary of the Company,
is an enterprise of bulk grape wine production and sale and finished bottled grape wine sale
incorporated in Shihezi City, Xinjiang Uygur Autonomous Region. In accordance with
Announcement on Continuing the Enterprise Income Tax Policies for the Large-Scale
Development of Western China of the Ministry of Finance, the State Taxation Administration
and the National Development and Reform Commission (Announcement No. 23 [2020] of
the Ministry of Finance), Shihezi Chateau is qualified to enjoy preferential taxation policies,
which means it can pay corporate income tax at a preferential rate of 15% for the period from
Ningxia Chateau Changyu Longyu Estate Co., Ltd. (referred to as “Ningxia Chateau”), a
subsidiary of the Company, is an enterprise of finished bottled grape wine production and
sale incorporated in Yinchuan City, Ningxia Huizu Autonomous Region. In accordance with
Announcement on Continuing the Enterprise Income Tax Policies for the Large-Scale
Development of Western China of the Ministry of Finance, the State Taxation Administration
and the National Development and Reform Commission (Announcement No. 23 [2020] of
the Ministry of Finance), Ningxia Chateau is qualified to enjoy preferential taxation policies,
which means it can pay corporate income tax at a preferential rate of 15% for the period from
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Changyu (Ningxia) Wine Co., Ltd. (“Ningxia Wine”), a subsidiary of the Company, is an
enterprise of bulk grape wine production and sale incorporated in Yinchuan City, Ningxia
Huizu Autonomous Region. In accordance with Announcement on Continuing the Enterprise
Income Tax Policies for the Large-Scale Development of Western China of the Ministry of
Finance, the State Taxation Administration and the National Development and Reform
Commission (Announcement No. 23 [2020] of the Ministry of Finance), Ningxia Wine is
qualified to enjoy preferential taxation policies, which means it can pay corporate income tax
at a preferential rate of 15% for the period from 2021 to 2030.
According to Enterprise Income Tax Law of the People's Republic of China and its
Implementing Regulations, and Announcement of the Ministry of Finance and the State
Taxation Administration on the Tax Policies for Further Supporting the Development of
Micro and Small Enterprises and Individual Industrial and Commercial Households
(Announcement No. 12 of [2023] of the Ministry of Finance and the State Taxation
Administration), for micro and small enterprises that meet the applicable conditions, the
taxable income for the year shall be calculated at a reduced rate of 25% of the annual taxable
income, and the enterprise income tax shall be paid at the applicable tax rate of 20%. Beijing
Changyu Wine Industry Marketing Co., Ltd. “ ( Beijing Allotting”), a subsidiary of the Group,
has been identified as eligible small low-profit enterprise.
According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Exempting Small-Scale Value-Added Tax Taxpayers from
Value-Added Tax (Announcement No. 19 of [2023] of the Ministry of Finance and the State
Taxation Administration), from January 1, 2024 to December 31, 2027, small-scale VAT
taxpayers subject to a levy rate of 3% on taxable sales income will enjoy a reduced VAT rate
of 1%; and prepaid VAT items that are subject to a 3% pre-levy rate will enjoy a reduced VAT
prepayment rate of 1%. Xinjiang Changyu Sales Co., Ltd. Weimeisi Tasting Center Branch
enjoys this preferential tax policy.
According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Further Strengthening the Implementation of the Policies
Regarding the Refund of Term-End Excess Input Value-Added Tax Credits (Announcement
No. 14 of [2022] of the Ministry of Finance and the State Taxation Administration), it will
further strengthen the implementation of the refund of term-end excess input value-added tax
credits and expand the industry scope of the policy of fully refunding the excess input
value-added tax credits. This Company and eligible subsidiaries have enjoyed the refund of
term-end excess input value-added tax credits.
According to the Announcement of the Ministry of Finance and the State Taxation
Administration on the Tax Policies for Further Supporting the Development of Micro and
Small Enterprises and Individual Industrial and Commercial Households (Announcement No.
are subject to a 50% reduction for small-scale VAT taxpayers, small low-profit enterprises,
and individual industrial and commercial households: resource tax (excluding water resource
tax), urban maintenance and construction tax, property tax, urban land use tax, stamp duty
(excluding stamp duty on securities transactions), cultivated land occupation tax, as well as
education surcharge and local education surcharge. Some of the Company's subsidiaries are
eligible for the reduction.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Item Ending Balance Beginning Balance
Cash on hand 4,468 18,877
Bank deposit 2,063,172,936 1,884,759,212
Other monetary capital 20,040,897 5,833,715
Total 2,083,218,301 1,890,611,804
Including: Total overseas deposits 53,522,383 70,392,228
As on June 30, 2026, the bank deposits of the Group including short-term fixed deposits ranging
from 3 months to 12 months amounted to RMB 60,650,000 yuan, with the interest rates ranging
from 1.15% to 1.85% (December 31, 2025: RMB 45,650,000 yuan).
As at June 30, 2026, the details of other monetary funds are listed as follows:
Unit: yuan
Item Ending Balance Beginning Balance
Deposit investment funds for stock repurchase 15,126,345
Account balance of Alipay 904,552 1,723,715
Guaranty money for bank platform 4,010,000 4,110,000
Total 20,040,897 5,833,715
As on June 30, 2026, the Group does not have any special interest arrangements such as
establishing joint fund management accounts with related parties.
Classification of bills receivable
Item Ending Balance Beginning Balance
Bank acceptance bills 100,000 102,342
Total 100,000 102,342
The above bills receivable are all due within one year.
Unit: yuan
Age Ending book balance Beginning book balance
Within 1 year (including 1 year) 167,506,271 269,602,415
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Over 3 years 2,323,159 2,227,844
Total 171,863,704 272,877,730
As on June 30, 2026, the accounts receivable with ownership restrictions were RMB 76,263,655
yuan (December 31, 2025: 73,330,179 yuan). Please refer to Note 7.20 for details.
Unit: yuan
Ending Balance
Name
Book balance Provision for bad debts Accrued proportion
Receivable from related
parties
Other customers 171,357,704 8,289,862 4.84%
Total 171,863,704 8,291,178 --
Unit: yuan
Ending Balance Beginning Balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Accrued value Accrued value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable for
which
provision for
bad debts is
accrued on a
single item
basis
Accounts
receivable for
which
provision for 171,863,704 100% 8,291,178 4.8% 163,572,526 272,877,730 100% 7,945,006 2.9% 264,932,724
bad debts is
accrued on a
combined basis
Total 171,863,704 100% 8,291,178 4.8% 163,572,526 272,877,730 100% 7,945,006 2.9% 264,932,724
Provision for bad debts accrued in this period:
Unit: yuan
Changes in this period
Beginning
Type Withdrawn or Ending Balance
Balance Accrual Cancelled Others
transferred back
Provision for 7,945,006 346,172 8,291,178
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
bad debts is
accrued on a
combined basis
Total 7,945,006 346,172 8,291,178
Nil
ranked by ending balance
Unit: yuan
Ending balance of
Percentage in total
Ending balance of bad debts
Ending balance Ending ending balance of
accounts provision and
Unit Name of accounts balance of accounts
receivable and provision for
receivable contract assets receivable and
contract assets impairment of
contract assets
contract assets
THE CO-OP FOOD
GROUP
ALLIANCE WINE CO
LTD
Beijing JD Century
Information Technology 6,602,173 6,602,173 3.8% 17,175
Co., Ltd.
Kingsland Wines and
Spirits
SLIGRO B.V. 3,584,148 3,584,148 2.1% 249,452
Total 31,068,277 31,068,277 18.10% 1,498,845
Nil
Nil
Unit: yuan
Item Ending Balance Beginning Balance
Bills receivable 222,487,233 228,073,841
Total 222,487,233 228,073,841
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Nil
Type Amount derecognized at end of period
Bank acceptance bills 99,609,132
Total 99,609,132
As on June 30, 2026, bills endorsed by the Group to other parties which are not yet due is RMB
to suppliers and constructions. The Group believes that due to good reputation of bank, the risk of
notes not accepting by bank on maturity is very low, therefore derecognize the note receivables
endorsed. If the bank is unable to pay the notes on maturity, according to the relevant laws and
regulations of China, the Group would undertake limited liability for the notes.
Unit: yuan
Ending Balance Beginning Balance
Age
Amount Proportion Amount Proportion
Within 1 year 14,483,906 99.84% 52,950,895 98%
Over 3 years
Total 14,506,780 -- 54,011,809 --
Unit: yuan
Percentage in
Relationship
Reason for the total
Client type with the Amount Age
unsettlement advance
Group
payment %
Xinjiang Muyun Yafeng Prepaid
Wine Co., Ltd. Third party 6,867,700 Within 1 year payment for 47.3%
goods
Qingdao International Airport Prepaid
Group Co., Ltd. Third party 2,459,489 Within 1 year payment for 17.0%
rent
Xinjiang Yuyuan Wine Co., Prepaid
Ltd. Third party 985,322 Within 1 year payment for 6.8%
goods
Shandong Jinzhou Health Prepaid
Industry Co., Ltd. Third party 758,960 Within 1 year payment for 5.2%
goods
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Percentage in
Relationship
Reason for the total
Client type with the Amount Age
unsettlement advance
Group
payment %
Shandong JD Kuaixing Prepaid
Supply Chain Technology Third party 681,785 Within 1 year payment for 4.7%
Co., Ltd. freight
Total -- 11,753,256 -- 81%
Unit: yuan
Item Ending Balance Beginning Balance
Interests receivable
Dividends receivable
Other receivables 113,246,526 127,713,309
Total 113,246,526 127,713,309
Other receivables
Unit: yuan
Nature Ending book balance Beginning book balance
Compensation receivable from the disposal
of vineyards
Land acquisition and storage receivable 31,768,902 31,768,902
Consumption tax and added-value tax
export rebate
Deposit and guaranty money receivable 5,515,747 5,868,084
Housing maintenance fund 2,703,605 2,703,605
Imprest receivable 59,938 45,182
Others 2,684,007 9,239,177
Total 134,809,141 150,284,639
Unit: yuan
Age Ending Balance Beginning Balance
Within 1 year (including 1 year) 21,345,621 32,124,454
Over 3 years 33,289,781 32,744,950
Total 134,809,141 150,284,639
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Changes in this period
Beginning Withdrawn or
Type Write-off or Ending Balance
Balance Accrual transferred Others
transfer back
back
Accrual 22,571,330 -1,008,715 21,562,615
Total 22,571,330 -1,008,715 21,562,615
The provision for bad debts accrued in this period was RMB -1,008,715 yuan; and that withdrawn
or transferred back in this period was RMB 0 yuan.
Nil
Unit: yuan
Percentage in total Ending
ending balance of balance of
Unit Name Nature Ending Balance Age
other accounts provision for
receivable bad debts
Laizhou Zhuqiao Town
Compensation receivable
People's Government,
from the disposal of 72,666,088 1-2 years 53.9% 7,266,609
Laizhou Yidao Town People's
Government vineyards
YEDA Natural Resources and Land acquisition and
Planning Bureau reserve funds
Value-added tax and
Servicio de Impuestos
consumption tax export 18,201,339 Within 1 year 13.5%
Internos
rebate
Yantai Municipal Finance
Housing maintenance fund 2,703,605 2-3 years 2.0%
Bureau
Shanghai Ruihong New Town Within 1 year,
Deposit 629,071 0.5%
Co., Ltd. 2-3 years
Total -- 125,969,005 93.5% 21,562,615
Nil
Nil
Nil
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Ending Balance Beginning Balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 121,010,599 121,010,599 277,656,519 277,656,519
Goods in process 2,123,027,358 2,123,027,358 1,876,067,662 1,876,067,662
Commodity
stocks
Total 2,807,679,565 13,978,824 2,793,700,741 2,852,827,984 16,750,775 2,836,077,209
Unit: yuan
Increase in this period Decrease in this period
Beginning
Item Transfer back or Ending Balance
Balance Accrual Others Others
write-off
Raw materials
Goods in process
Commodity
stocks
Total 16,750,775 13,978,824 16,750,775 13,978,824
Unit: yuan
Item Ending Balance Beginning Balance
Accounts receivable return cost 26,452 7,166,025
Prepaid corporate income tax 17,264,190 3,745,396
Deductible input tax 47,227,375 61,109,041
Expense to be amortized 2,204,505 2,140,474
Total 66,722,522 74,160,936
Unit: yuan
Movements during the period
Beginning Investment Ending
Beginning gains and Ending
balance of Other Declare Accrual balance of
balance Increase losses Other balance
Investee provision Decrease comprehensive cash provision provision
(book in recognized equity Others (book
for in capita income dividend for for
value) capital under the changing value)
impairment adjustment or profit impairment impairment
equity
method
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
SAS L&M
Holdings
( “ L&M
Holdings”)
Subtotal 24,933,742 6,233,435 -3,261,023 21,672,719 6,233,435
Shanghai
Yufeng Brand
Management
Co., Ltd. 394,840 75 394,915
( “ Shanghai
Yufeng ” )
(Note 1)
Yantai
Guolong
Wine
Industry Co., 757,369 -30,841 726,528
Ltd. (“Yantai
Guolong ” )
(Note 1)
Taizhou
Changyu
Chateau Wine 570,246 -7,309 562,937
Sales Co.,
Ltd. (Note 2)
Subtotal 1,722,455 -38,075 1,684,380
Total 26,656,197 6,233,435 -3,299,098 23,357,099 6,233,435
Note 1: The Group has appointed one director to each of these investees.
Note 2: The Group has appointed two directors to each of these investees.
Unit: yuan
Houses and Construction in
Item Land use right Total
buildings progress
I Original book value
assets\ construction in progress
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Houses and Construction in
Item Land use right Total
buildings progress
II. Accumulated depreciation &
accumulated amortization
III. Impairment provision
IV. Book value
Unit: yuan
Item Ending Balance Beginning Balance
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Ending Balance Beginning Balance
Fixed assets 5,183,660,371 5,308,778,632
Disposal of fixed assets
Total 5,183,660,371 5,308,778,632
Unit: yuan
Transportation
Item Houses and buildings Machinery equipment Total
equipment
I. Original book value:
period
construction in progress
increase
period
retirement
II. Accumulated
depreciation
period
period
retirement
III. Impairment provision
period
period
retirement
IV. Book value
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Transportation
Item Houses and buildings Machinery equipment Total
equipment
value
As on June 30, 2026, the net value of the fixed assets with ownership restrictions was RMB
details.
Unit: yuan
Original book Accumulated Depreciation
Item Book value Remarks
value depreciation reserves
Machinery equipment 29,423,698 19,060,315 10,363,383
Total 29,423,698 19,060,315 10,363,383
Nil
Unit: yuan
Item Ending book value
Building 82,179,569
Machinery equipment 931
Unit: yuan
Reason for not receiving the property
Item Book value
certificate
Dormitory building, main building and
reception building of Longue Chanson 240,300,463 Under transaction
Chateau
European town, main building and service
building of Chateau AFIP
Changyu (Ningxia) winemaking
fermentation workshop and warehouse
Office building, laboratory building and
workshop of Fermentation Center
Wine-making workshop of Changyu
(Jingyang)
Finished goods warehouse and workshop
of Kylin Packaging
Others 699,039 Under transaction
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Total 394,387,610
Unit: yuan
Item Ending Balance Beginning Balance
Construction in progress 6,350,167 4,313,088
Engineering materials
Total 6,350,167 4,313,088
Unit: yuan
Ending Balance Beginning Balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Renovation of Longue
Chanson Chateau
Renovation of the
courtyard of Changyu 827,934 827,934 702,063 702,063
Museum
Projects of other
companies
Total 6,350,167 6,350,167 4,313,088 4,313,088
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Transferred Including:
Transferred Proportion of Accumulative
to long-term capitalized Capitalization
Beginning Increase in to fixed Ending accumulative capitalized
Project name Budget unamortized amount of ratio of interest in Capital source
Balance this period assets in this Balance project input in amount of
expenses in interest in this period
period budget interest
this period this period
Renovation of
Longue
Chanson
Chateau
Renovation of
the courtyard
of Changyu
Museum
As on June 30, 2026, there was no indication for impairment of construction in progress of the Group, so no provision for impairment was
made.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Plantation
Item Total
Immature Mature
Ⅰ Original book value
The immature turn to the mature -557,450 557,450
Ⅱ Accumulated depreciation
Ⅲ Impairment provision
Ⅳ Book value
As on June 30, 2026, no ownership of the biological assets was restricted.
As on June 30, 2026, there was no indication for impairment of biological assets of the Group, so
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
no provision was made.
Unit: yuan
Item Building Land Total
Ⅰ Original book value:
Ⅱ Accumulated amortization
Ⅲ Impairment provision
Ⅳ Book value
Unit: yuan
Item Land use right Software use right Trademark Total
Ⅰ Original book value
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Land use right Software use right Trademark Total
increase
Ⅱ Accumulated amortization
Ⅲ Impairment provision
Ⅳ Book value
As on June 30, 2026, no ownership of the intangible assets was restricted.
Nil
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Decrease in this
Increase in this period
period
Name of the invested unit or matter forming Beginning
Formed by Ending Balance
goodwill Balance
business Others Disposal Others
merger
Atrio Group 92,391,901 92,391,901
Indomita Wine Company Chile, SpA 6,870,115 6,870,115
Kilikanoon Estate, Australia 37,063,130 37,063,130
Total 136,325,146 136,325,146
Unit: yuan
Decrease in this
Name of the invested unit or matter forming Beginning Increase in this period
period Ending Balance
goodwill Balance
Accrual Others Disposal Others
Atrio Group 11,225,459 11,225,459
Kilikanoon Estate, Australia 37,063,130 37,063,130
Total 48,288,589 48,288,589
Unit: yuan
Increase in this Amortization in this
Item Beginning Balance Other decreases Ending Balance
period period
Land acquisition
fees
Afforestation fees 93,231,556 4,211,467 89,020,089
Renovation costs 145,524,347 2,239,998 5,837,785 141,926,560
Others 4,098,180 1,455,024 253,839 5,299,365
Total 283,227,056 3,695,022 11,102,904 275,819,174
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Ending Balance Beginning Balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Asset impairment
provision
Unrealized profits from
inter-company 285,073,741 71,268,435 416,323,375 104,080,844
transactions
Deductible loss 256,753,084 62,887,496 250,789,836 61,117,483
Unpaid bonus 104,455,919 26,113,980 120,048,950 30,012,237
Dismission welfare 4,105,978 1,026,494 5,316,990 1,329,247
Deferred income 15,793,091 3,344,574 19,386,932 4,151,683
Influence of leasing
standards
Total 722,524,747 178,840,549 871,295,522 215,680,654
Unit: yuan
Ending Balance Beginning Balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Assets appraisal
appreciation in business
combination under
non-common control
Influence of leasing
standards
Total 24,470,099 6,296,958 22,950,585 6,613,894
Unit: yuan
Item Ending Balance Beginning Balance
Deductible temporary difference
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Deductible loss 613,512,549 546,736,496
Total 613,512,549 546,736,496
Unit: yuan
Year Ending sum Beginning sum Remarks
Total 613,512,549 546,736,496 --
Unit: yuan
Ending Balance Beginning Balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Advance
payment for 43,735 43,735 43,735 43,735
construction
Total 43,735 43,735 43,735 43,735
Unit: yuan
Ending Beginning
Item Restriction Restriction Book Restriction Restriction
Book balance Book value Book value
type state balance type state
Security Security
Monetary
capital
etc. etc.
Fixed Mortgage Mortgage
assets loan loan
Accounts Factoring Factoring
receivable restricted restricted
Total 126,927,122 112,070,660 124,093,646 111,606,173
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Item Ending Balance Beginning Balance
Mortgage loan 164,805,355 158,792,031
Guaranteed loan 8,283,492 13,364,220
Fiduciary loan 71,263,217 68,518,537
Total 244,352,064 240,674,788
• As on June 30, 2026, EUR mortgage loan was EUR 9,818,807 (equivalent of RMB 76,263,655
yuan) (December 31, 2025: EUR 8,904,156, equivalent of RMB 73,330,179 yuan) of accounts
receivable factoring business handled by Hacienday Vinedos Marques del Atrio, S.L.U. (“Atrio”)
with banks including Banco Santander, BBVA, and Bankinter;
• As on June 30, 2026, USD loan was USD 13,000,000 (equivalent of RMB 88,541,700 yuan)
(December 31, 2025: USD 12,125,000, equivalent of RMB 85,461,852 yuan) of loans borrowed by
Chile Indomita Wine Group from Banco Scotiabank and Banco de Chile with the fixed assets as
collateral.
•As on June 30, 2026, AUD guaranteed loan was AUD 1,770,000 (equivalent of RMB 8,283,492
yuan) (December 31, 2025: AUD 2,850,000, equivalent of RMB 13,364,220 yuan) borrowed by
Australia Kilikanoon Estate.
Unit: yuan
Item Ending Balance Beginning Balance
Accounts payable for materials, etc. 313,132,902 321,932,168
Total 313,132,902 321,932,168
Unit: yuan
Item Ending Balance Beginning Balance
Advances from customers 115,718,391 134,708,926
Withholding of goods with sales rebate 358,537
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Total 115,718,391 135,067,463
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
defined contribution plan
year
Total 162,525,617 187,158,152 220,939,042 128,744,727
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
and subsidies
Including: Medical insurance 198,433 6,200,606 6,388,895 10,144
Injury insurance 70 484,395 484,425 40
Maternity
insurance
fee
absences
Minus: Those divided into
non-current liabilities
Total 156,887,202 158,124,714 190,376,747 124,635,169
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
insurance
insurance
payment
Total 321,425 26,147,832 26,465,677 3,580
Unit: yuan
Increase in Decrease in this
Item Beginning Balance Ending Balance
this period period
relation
Total 5,316,990 2,885,606 4,096,618 4,105,978
Unit: yuan
Item Ending Balance Beginning Balance
Value added tax 19,712,909 27,831,972
Consumption tax 17,060,369 42,140,635
Corporate income tax 77,102,948 69,531,572
Individual income tax 2,173,786 786,256
City development tax 2,191,839 4,495,333
Education surcharges 1,589,313 3,221,254
Urban land use tax 2,247,092 2,302,126
Others 7,906,498 8,249,786
Total 129,984,754 158,558,934
Unit: yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Ending Balance Beginning Balance
Interest payable
Dividends payable 388,355
Other payable 310,626,635 332,855,775
Total 311,014,990 332,855,775
Unit: yuan
Item Ending Balance Beginning Balance
Ordinary stock dividends
Preferred stock dividends/sustainable debt
dividends divided into equity instruments
Others 388,355
Total 388,355
Unit: yuan
Item Ending Balance Beginning Balance
Dealer's deposit payable 151,174,880 156,861,946
Equipment purchase and construction costs
payable
Transportation charges payable 5,384,865 18,179,784
Trademark use fee payable 9,139,135 17,082,233
Advertisement expenses payable 41,910,743 43,523,608
Employee cash deposit 309,282 1,480,476
Supplier's deposit payable 15,129,135 16,393,705
Contracting fees payable 8,347,970 3,942,153
Repurchase of treasury stock funds
payable
Others 30,138,458 25,987,369
Total 310,626,635 332,855,775
As on June 30, 2026, there were no other large accounts payable aged more than one year.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Item Ending Balance Beginning Balance
Long-term loans due within one year 68,225,594 65,453,059
Bonds payable due within one year
Long-term accounts payable due within
one year
Lease liabilities due within one year 13,770,516 9,987,851
Total 81,996,110 75,440,910
Item Ending Balance Beginning Balance
Refund payable 34,564 7,613,210
Unamortized VAT amount 15,043,391 19,580,652
Total 15,077,955 27,193,862
Unit: yuan
Item Ending Balance Beginning Balance
Fiduciary loan 112,853,706 117,827,899
Minus: Long-term loans due within one
year
Total 44,628,112 52,374,840
As on June 30, 2026, fiduciary loans (EUR) were EUR 14,529,709 (equivalent of RMB
borrowed by Atrio from banks including Banco Santander, BBVA, Caja Rural de Navarr, and Caixa
Bank.
Unit: yuan
Item Ending Balance Beginning Balance
Long-term lease liabilities 61,158,186 29,425,681
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Minus: Lease liabilities due within one
year
Total 47,387,670 19,437,830
Unit: yuan
Increase in this Decrease in this
Item Beginning Balance Ending Balance Forming reason
period period
Governmental
subsidy
Total 19,386,932 3,593,841 15,793,091
Projects related to governmental subsidy:
Unit: yuan
Amount of Amount
Amount
subsidy included in Amount
Beginning offset the Other
Item of liabilities newly non-operating included in Ending balance
balance cost changes
increased in revenue in this other income
expenses
this period period
Industrial development
supporting funds
Subsidy for retaining wall 8,402,190 622,571 7,779,619 Related to assets
Xinjiang industrial revitalization
and technological 5,688,000 711,000 4,977,000 Related to assets
transformation project
Special funds for efficient
water-saving irrigation project
Subsidy for economic and
energy-saving technological 128,300 64,150 64,150 Related to assets
transformation projects
Subsidy for scenic spot
construction
Improvement of public service
facilities in scenic spot
Subsidy for research and
industrialization of domestic oak 177,355 177,355 Related to income
aging technology
Total 19,386,932 3,593,841 15,793,091
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Increase or decrease (+,-) in this period
Share
Newly transferred
Item Beginning Balance Allocated Ending Balance
issued from Others Subtotal
shares
shares accumulation
fund
Total shares 657,240,128 657,240,128
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
Capital premium (share capital
premium)
Other capital reserves 30,610,824 30,610,824
Total 364,048,502 364,048,502
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
Repurchase of
B-shares
Repurchase of
restricted stock
Total 37,880,941 34,873,655 72,754,596
•The fifth meeting of the tenth session of the Board of Directors was held on April 16, 2026, and
the 2025 Annual General Meeting of Shareholders was held on May 22, 2026. The Plan for
Repurchasing Shares of Part of Domestic Listed Foreign Shares (B-shares) of the Company was
reviewed and approved. According to the above-mentioned B-share repurchase plan, the Company
will implement the repurchase of domestic listed foreign shares (B-shares) through centralized
bidding trading, taking into account its own financial and operating conditions, with a total
repurchase capital of RMB 67.4 million – 100 million yuan and a repurchase price not exceeding
HKD 11.49 per share. The repurchase period shall not exceed 12 months from the date of approval
of share repurchase plan by the shareholders' meeting. The number of shares to be repurchased shall
not be less than 10 million shares and shall not exceed 15 million shares. The repurchased shares
shall be cancelled and the registered capital of the Company shall be correspondingly reduced.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
As of June 30, 2026, the Company has repurchased a total of 4,830,000 domestic listed foreign
shares (B-shares) through centralized bidding method via a special securities account for share
repurchase, accounting for 0.7349% of the Company's current total share capital. The total
transaction amount was equivalent to RMB 34,873,655 yuan.
Unit: yuan
Amount incurred in this period
Minus:
amount
Minus: amount
included in
Amount included in other
other Minus: Attributable Attributable
Beginning incurred comprehensive Ending
Item comprehensive income to parent to minority
Balance before income before Balance
income before tax company shareholders
income tax in and transferred to
and transferred expenses after tax after tax
this period profit or loss in
to retained
this period
earnings in
this period
income not to be reclassified
into profit and loss later
Including: Changes after
re-measuring and resetting
the benefit plans
Other comprehensive
income not to be reclassified
into profit and loss under
equity method
Changes in the fair
value of other investments in
equity instruments
Changes in the fair
value of the enterprise's own
credit risk
income to be reclassified into -16,329,710 -13,172,537 -11,755,124 -1,417,413 -28,084,834
profit and loss later
Including: Other
comprehensive income to be
reclassified into profit and
loss under equity method
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Amount incurred in this period
Minus:
amount
Minus: amount
included in
Amount included in other
other Minus: Attributable Attributable
Beginning incurred comprehensive Ending
Item comprehensive income to parent to minority
Balance before income before Balance
income before tax company shareholders
income tax in and transferred to
and transferred expenses after tax after tax
this period profit or loss in
to retained
this period
earnings in
this period
Changes in the fair
value of other debt
investments
Amount of financial
assets reclassified into other
comprehensive income
Provision for credit
impairment of other credit
investments
Provision for cash-flow
hedge
Difference in translation
of Foreign Currency -16,329,710 -13,172,537 -11,755,124 -1,417,413 -28,084,834
Financial Statement
Total other comprehensive
-16,329,710 -13,172,537 -11,755,124 -1,417,413 -28,084,834
income
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
Legal surplus reserves 342,732,000 342,732,000
Free surplus reserves
Reserve fund
Enterprise expansion
fund
Others
Total 342,732,000 342,732,000
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Item This period Prior period
Undistributed profit at the end of prior period
before adjustment
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
Plus: Net profit for owner of the parent company 140,515,805 185,597,142
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 164,310,032 268,729,560
Common dividend transferred to share
capital
Undistributed profit at the end of period 9,013,643,371 9,149,795,952
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 1,535,630,780 641,722,223 1,434,469,813 579,755,809
Others businesses 37,073,973 12,993,176 36,106,364 13,050,449
Total 1,572,704,753 654,715,399 1,470,576,177 592,806,258
Including: Income from contracts 1,569,880,471 652,432,942 1,467,719,364 590,459,268
Income from house rents 2,824,282 2,282,457 2,856,813 2,346,990
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Contract classification Operating income Operating cost
- Alcoholic beverage 1,535,630,780 641,722,223
- Others 34,249,691 10,710,719
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 1,569,880,471 652,432,942
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 70,730,210 58,563,215
City development tax 12,001,548 8,879,061
Education surcharges 8,602,508 6,439,043
Building tax 17,347,380 17,414,976
Land use tax 5,018,507 4,925,917
Vehicle and vessel use tax 13,457 10,536
Stamp duty 1,481,666 1,437,117
Others 256,249 181,575
Total 115,451,525 97,851,440
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Labor cost 126,706,728 119,403,300
Marketing expenses 165,264,594 130,423,949
Labor expenses 17,428,750 15,252,966
Depreciation expenses 31,272,848 30,786,813
Storage expenses 11,813,394 11,354,031
Advertisement expenses 37,780,989 29,798,339
Trademark use fee 6,470,914 5,451,141
Travel expenses 13,046,687 12,906,974
Design & production expenses 5,937,874 4,921,771
Conference expenses 3,467,275 3,000,702
Water, electricity and gas charges 5,352,813 5,414,402
Others 34,167,070 33,436,428
Total 458,709,936 402,150,816
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Labor cost 27,880,794 28,938,791
Depreciation expenses 46,504,022 49,771,088
Contracting expenses 2,007,300 2,007,300
Repair expenses 2,528,735 2,342,841
Office expenses 11,108,550 11,028,310
Amortization expenses 7,980,721 7,922,805
Afforestation fees 6,749,041 6,736,148
Safe production costs 1,704,862 2,553,903
Business entertainment expenses 1,066,264 1,375,182
Public security & clean-keeping expenses 3,366,899 3,333,559
Travel expenses 803,896 972,756
Others 9,674,602 9,665,276
Total 121,375,686 126,647,959
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 9,923,137 9,071,966
Total 9,923,137 9,071,966
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 8,320,670 5,528,569
Minus: Interest income 8,050,884 5,914,026
Plus: Commission charges 397,357 514,469
Exchange gain or loss 10,803,525 -14,776,944
Total 11,470,668 -14,647,932
Unit: yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Source of other income Amount incurred in this period Amount incurred in prior period
Industrial development supporting funds 2,050,000 2,050,000
Xinjiang industrial revitalization and
technological transformation project
Subsidy for retaining wall 622,571 569,000
Other – related to assets 210,270 293,247
Special funds for supporting corporate
development
Talent development fund 860,000
Regional sales incentive fund 4,110,000
Special funds for commercial and trade
development
Other – related to income 510,470 6,331,199
Total 8,354,311 19,258,546
Unit: yuan
Amount incurred in prior
Item Amount incurred in this period
period
Income from long-term equity investment by equity method -3,299,098 -3,018,088
Investment income from disposal of long-term equity
investment
Investment income gained from trading financial assets during
the holding period
Investment income gained from disposal of trading financial
assets
Dividend income gained from other equity instruments during
the holding period
Gains generated from the remaining equity remeasured as per
fair value after the loss of control
Interest income gained from equity investment during the
holding period
Interest income gained from other equity investments during
the holding period
Investment income gained from disposal of other equity
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Amount incurred in prior
Item Amount incurred in this period
period
investments
Total -3,299,098 -3,018,088
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Loss on bad debts of accounts receivable -346,172 1,549,058
Loss on bad debts of other receivable 1,008,715
Total 662,543 1,549,058
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Inventory falling price loss and loss on
impairment of contract execution cost
Total 2,771,951 -2,093,965
Unit: yuan
Source of income from asset disposal Amount incurred in this period Amount incurred in prior period
Income from disposal of fixed assets 25,845 361,014
Total 25,845 361,014
Unit: yuan
Amount included in the current
Item Amount incurred in this period Amount incurred in prior period
non-recurring profits/losses
Gains on exchange of
non-monetary assets
Grains on donations
Governmental subsidy
Gains on scrap of non-current 22,743 23,894 22,743
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Amount included in the current
Item Amount incurred in this period Amount incurred in prior period
non-recurring profits/losses
assets
Others 2,676,722 893,739 2,676,722
Total 2,699,465 917,633 2,699,465
Unit: yuan
Amount incurred in this Amount incurred in Amount included in the current
Item
period prior period non-recurring profits/losses
Loss on exchange of non-monetary assets
Donation 20,000
Loss on scrap of non-current assets 9,622 26,032 9,622
Fine, penalty and overdue fine 154,720 520,698 154,720
Others 101,286 22,633 101,286
Total 265,628 589,363 265,628
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Current income tax expenses 32,378,104 48,268,623
Deferred income tax expenses 36,523,169 33,497,152
Total 68,901,273 81,765,775
Unit: yuan
Item Amount incurred in this period
Total profit 212,007,791
Income tax expenses calculated according to the legal/applicable tax rate 53,001,948
Influence of different tax rates applicable to subsidiary 45,132
Influence of income tax in the term before adjustment -1,385,806
Influence of nontaxable income
Influence of non-deductible costs, expenses and losses 856,535
Influence of deductible loss from use of unconfirmed deferred income tax -1,076,495
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Amount incurred in this period
assets in prior period
Influence of deductible temporary difference or deductible loss of
unconfirmed deferred income tax assets in this period
Income tax expense 68,901,273
Refer to Note 7.35 for details.
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 4,760,470 19,205,955
Interest income 7,454,029 4,736,095
Net amercement income 24,629 91,304
Others 5,814,621 9,735,484
Total 18,053,749 33,768,838
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 177,953,254 201,918,055
Administrative expenses 28,688,003 31,309,835
Others 11,465,833 11,493,063
Total 218,107,090 244,720,953
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Cash paid for repurchasing B shares 34,873,655 7,150,483
Cash paid for leasing 11,228,570 11,087,384
Total 46,102,225 18,237,867
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Changes in various liabilities arising from financing activities
Unit: yuan
Ending
Increase in this period Decrease in this period
Beginning Balance
Item
Balance Cash Non-cash Non-cash
Cash movement
movement movement movement
Short-term borrowings 240,674,788 212,652,932 200,768,497 8,207,159 244,352,064
Long term loans (including
long-term liabilities due within one 117,827,899 35,164,161 33,436,810 6,701,544 112,853,706
year)
Lease liabilities (including lease
liabilities due within one year)
Other payables - dividends payable 164,698,387 164,310,032 388,355
Other payables - interest payable 7,133,634 7,133,634
Other payables - accounts payable
for repurchasing treasury shares
Other payables – repurchasing B
shares
Total 425,809,309 247,817,093 249,666,751 451,751,198 14,908,703 456,633,252
Unit: yuan
Supplementary materials Amount in this period Amount in prior period
adjusting the net profit:
Net profit 143,106,518 191,314,730
Plus: Provision for impairment of assets -3,434,494 544,907
Depreciation of fixed assets, oil-and-gas assets
and productive biological assets
Depreciation of right-of-use assets 9,398,965 9,436,272
Amortization of intangible assets 8,318,339 8,550,554
Amortization of long-term deferred expenses 11,102,904 11,085,844
Losses on disposal of fixed assets, intangible
-25,845 -361,014
assets and other long-term assets (profit listed with “-”)
Losses on retirement of fixed assets (profit -13,121 2,138
listed with Losses
“-”) on fair value change (profit listed with
“-”) Financial costs (profit listed with “-”) 9,085,807 2,812,883
Investment losses (profit listed with “-”) 3,299,098 3,018,088
Decrease in deferred income tax assets 36,840,105 34,008,220
(increase listed with “-”)
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Supplementary materials Amount in this period Amount in prior period
Increase of deferred income tax liabilities -316,936 -511,068
(decrease listed with “-”)
Decrease in inventories (increase listed with 45,148,419 -57,846,816
“-”) Decrease in operating receivables (increase 160,466,438 141,442,102
listed with Increase
“-”) in operating payable (decrease listed -157,014,484 -259,290,500
with “-”)
Others
Net cash flows from operating activities 418,235,893 239,421,128
involving
Debt cash depositinto
transferred andassets
withdrawal:
Convertible corporate bond due within one year
Fixed assets under financing lease
Ending balance of cash 2,017,179,106 1,778,740,634
Minus: Beginning balance of cash 1,839,128,089 1,717,727,551
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent 178,051,017 61,013,083
Unit: yuan
Item Ending Balance Beginning Balance
Including: Cash on hand 4,468 18,877
Bank deposits available for payment at any
time
Other monetary funds available for payment
at any time
Deposits with central bank available for
payment
Including: Bond investment due within three
months
of period
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Ending balance at foreign Converted exchange rate Ending balance at RMB
Monetary capital 18,123,421
Including: USD 256,605 6.8109 1,747,711
EUR 135,837 7.7671 1,055,060
HKD 17,507,344 0.86855 15,206,004
CAD 23,961.00 4.7847 114,646
Accounts receivable 43,562,238
Including: USD 4,726,226 6.8109 32,189,853
EUR 167,724 7.7671 1,302,729
GBP 241,080 4.7847 1,153,495
CAD 989,091 9.0145 8,916,161
Short-term borrowings 88,541,700
Including: USD 13,000,000 6.8109 88,541,700
EUR
HKD
-- --
currency in the main economic environment in which they operate. The functional currency of Atrio
and Francs Champs Participations SAS (“Farshang Holdings”) is Euro, the functional currency of
Chile Indomita Wine Group is Chilean Peso, and the functional currency of Australia Kilikanoon
Estate is Australian Dollar.
Item Amount incurred in this period Amount incurred in prior period
Employee compensation 2,608,406 2,336,948
Test and laboratory fees 906,487 175,737
Consulting fees 1,101,703 1,546,712
Consumption of materials 2,253,742 1,188,000
Others 3,052,799 3,824,569
Total 9,923,137 9,071,966
Including: Expensing research and development
expenses
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Capitalized research and development
expenses
In the reporting period, there was no change in the consolidation scope of the Group.
Principal Proportion of
Registered Registration Business Acquisition
Name of subsidiary business shareholding
capital place nature mode
location Direct Indirect
Acquired
from a
business
HACIENDA Y VINEDOS MARQUES
EUR2,000,000 Navarre, Spain Navarre, Spain Sales 90 combination
DEL ATRIO,S.L. (“Atrio”)
under
non-common
control
Acquired by
INDOMITA WINE COMPANY CHILE
CLP31,100,000,000 Santiago, Chile Santiago, Chile Sales 85 establishment
SpA.(“Indomita Chile”)
or investment
Acquired
from a
business
Kilikanoon Estate Pty Ltd. ( “ Australia Adelaide, Adelaide,
AUD6,420,000 Sales 99 combination
Kilikanoon Estate”) Australia Australia
under
non-common
control
Acquired by
Beijing Changyu Sales and Distribution
RMB1,000,000 Beijing, China Beijing, China Sales 100 establishment
Co., Ltd. (“Beijing Sales”)
or investment
Acquired by
Yantai Kylin Packaging Co., Ltd. (“Kylin Yantai, Yantai, Manufacturing
RMB15,410,000 100 establishment
Packaging”) Shandong, China Shandong, China industry
or investment
Acquired by
Yantai Chateau Changyu-Castel Co., Ltd. Yantai, Yantai, Manufacturing
USD5,000,000 70 establishment
(“Chateau Changyu”) (a) Shandong, China Shandong, China industry
or investment
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Principal Proportion of
Registered Registration Business Acquisition
Name of subsidiary business shareholding
capital place nature mode
location Direct Indirect
Acquired by
Changyu (Jingyang) Wine Co., Ltd. Xianyang, Xianyang, Manufacturing
RMB1,000,000 90 10 establishment
(“Jingyang Wine”) Shaanxi, China Shaanxi, China industry
or investment
Acquired by
Yantai Changyu Pioneer Wine Sales Co., Yantai, Yantai,
RMB8,000,000 Sales 100 establishment
Ltd. (“Sales Company”) Shandong, China Shandong, China
or investment
Acquired by
Shanghai Changyu Sales and Distribution
RMB1,000,000 Shanghai, China Shanghai, China Sales 100 establishment
Co., Ltd. (“Shanghai Sales”)
or investment
Beijing Changyu AFIP Agriculture Acquired by
Miyun, Beijing, Miyun, Beijing,
Development Co., Ltd. ( “ Agriculture RMB1,000,000 Sales 100 establishment
China China
Development”) or investment
Acquired by
Beijing Chateau Changyu AFIP Global Manufacturing
RMB642,750,000 Beijing, China Beijing, China 91.53 establishment
Co., Ltd. (“AFIP”) (b) industry
or investment
Acquired by
Yantai Changyu Wine Sales Co., Ltd. Yantai, Yantai,
RMB5,000,000 Sales 90 10 establishment
(“Wines Sales”) Shandong, China Shandong, China
or investment
Acquired by
Yantai Changyu Pioneer International Yantai, Yantai,
RMB5,000,000 Sales 70 30 establishment
Co., Ltd. (“Pioneer International”) Shandong, China Shandong, China
or investment
Acquired by
Hangzhou Changyu Wine Sales Co., Ltd. Hangzhou, Hangzhou,
RMB 500,000 Sales 100 establishment
(“Hangzhou Changyu”) Zhejiang, China Zhejiang, China
or investment
Acquired by
Ningxia Changyu Grape Growing Co., Yinchuan,
RMB1,000,000 Ningxia, China Plantation 100 establishment
Ltd. (“Ningxia Growing”) Ningxia, China
or investment
Acquired by
Huanren Changyu National Wines Sales Benxi, Liaoning, Benxi, Liaoning,
RMB2,000,000 Sales 100 establishment
Co., Ltd. (“National Wines”) China China
or investment
Acquired by
Liaoning Changyu Golden Icewine Valley Benxi, Liaoning, Benxi, Liaoning, Manufacturing
RMB64,687,300 100 establishment
Co., Ltd. (“Golden Icewine Valley”) China China industry
or investment
Yantai Development Zone Changyu Acquired by
Yantai, Yantai,
Trading Co., Ltd. ( “ Development Zone RMB5,000,000 Sales 100 establishment
Shandong, China Shandong, China
Trading”) or investment
Beijing AFIP Meeting Center (“Meeting RMB 500,000 Miyun, Beijing, Miyun, Beijing, Services 100 Acquired by
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Principal Proportion of
Registered Registration Business Acquisition
Name of subsidiary business shareholding
capital place nature mode
location Direct Indirect
Center”) China China establishment
or investment
Acquired by
Beijing AFIP Tourism and Culture Miyun, Beijing, Miyun, Beijing,
RMB 500,000 Tourism 100 establishment
(“AFIP Tourism”) China China
or investment
Acquired by
Changyu (Ningxia) Wine Co., Ltd. Manufacturing
RMB1,000,000 Ningxia, China Ningxia, China 100 establishment
(“Ningxia Wine”) industry
or investment
Acquired by
Yantai Changyu Chateau Tinlot Co., Ltd. Yantai, Yantai, Wholesale and
RMB400,000,000 65 35 establishment
(“Chateau Tinlot”) Shandong, China Shandong, China retail
or investment
Acquired by
Xinjiang Chateau Changyu Baron Balboa Shihezi, Shihezi, Manufacturing
RMB550,000,000 100 establishment
Co., Ltd. (“Chateau Shihezi”) Xinjiang, China Xinjiang, China industry
or investment
Acquired by
Ningxia Chateau Changyu Longyu Estate Yinchuan, Yinchuan, Manufacturing
RMB2,000,000 100 establishment
Co., Ltd. (“Chateau Ningxia”) Ningxia, China Ningxia, China industry
or investment
Shaanxi Changyu Chateau Longue Acquired by
Xianyang, Xianyang, Manufacturing
Chanson Co., Ltd. (“Chateau Longue RMB20,000,000 100 establishment
Shaanxi, China Shaanxi, China industry
Chanson”) or investment
Yantai Changyu Wine Research, Acquired by
Yantai, Yantai, Manufacturing
Development, and Manufacturing Co., RMB805,000,000 100 establishment
Shandong, China Shandong, China industry
Ltd. (“R&D Company”) or investment
Acquired by
Xinjiang Changyu Wine Sales Co., Ltd. Shihezi, Shihezi,
RMB10,000,000 Sales 100 establishment
(“Xinjiang Sales”) Xinjiang, China Xinjiang, China
or investment
Acquired by
Ningxia Changyu Trading Co., Ltd. Yinchuan, Yinchuan,
RMB1,000,000 Sales 100 establishment
(“Ningxia Trading”) Ningxia, China Ningxia, China
or investment
Shaanxi Changyu Longue Chanson Acquired by
Xianyang, Xianyang,
Wine Sales Co., Ltd. (“ Longue Chanson RMB3,000,000 Sales 100 establishment
Shaanxi, China Shaanxi, China
Sales”) or investment
Acquired by
Penglai Changyu Wine Sales Co., Ltd. Penglai, Penglai,
RMB5,000,000 Sales 100 establishment
(“Penglai Wine”) Shandong, China Shandong, China
or investment
Laizhou Changyu Wine Sales Co., Ltd. Laizhou, Laizhou, Acquired by
RMB1,000,000 Sales 100
(“Laizhou Sales”) Shandong, China Shandong, China establishment
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Principal Proportion of
Registered Registration Business Acquisition
Name of subsidiary business shareholding
capital place nature mode
location Direct Indirect
or investment
Acquired by
FrancsChampsParticipationsSAS Investment
EUR32,000,000 Bordeaux, France Bordeaux, France 100 establishment
(“Francs Champs”) and trading
or investment
Acquired by
Yantai Roullet Fransac Wine Sales Co., Yantai, Yantai,
RMB1,000,000 Sales 100 establishment
Ltd. (“Yantai Roullet Fransac”) Shandong, China Shandong, China
or investment
Acquired by
Yantai Changyu Wine Sales Co., Ltd. Yantai, Yantai,
RMB5,000,000 Sales 100 establishment
(“Wine Sales Company”) Shandong, China Shandong, China
or investment
Shaanxi Chateau Changyu Longue Acquired by
Xianxin, Shaanxi, Xianxin, Shaanxi,
Chanson Tourism Co., Ltd. ( “ Chateau RMB1,000,000 Tourism 100 establishment
China China
Longue Chanson”) or investment
Acquired by
Longkou Changyu Wine Sales Co., Ltd. Yantai, Yantai,
RMB1,000,000 Sales 100 establishment
(“Longkou Sales”) Shandong, China Shandong, China
or investment
Yantai Changyu Cultural Tourism Acquired by
Yantai, Yantai,
Development Co., Ltd. ( “ Changyu RMB10,000,000 Tourism 100 establishment
Shandong, China Shandong, China
Cultural Tourism Company”) or investment
Acquired by
Yantai Changyu Wine Culture Museum Yantai, Yantai,
RMB 500,000 Tourism 100 establishment
Co., Ltd. (“Museum”) Shandong, China Shandong, China
or investment
Acquired by
Yantai Changyu Cultural Tourism Product Yantai, Yantai,
RMB5,000,000 Tourism 100 establishment
Sales Co., Ltd. (“Cultural Sales”) Shandong, China Shandong, China
or investment
Yantai Changyu Window of International Acquired by
Yantai, Yantai,
Wine City Co., Ltd. (“Window of Wine RMB60,000,000 Tourism 100 establishment
Shandong, China Shandong, China
City”) or investment
Acquired by
Yantai Chateau Koya Brandy Co., Ltd. Yantai, Yantai, Manufacturing
RMB10,000,000 100 establishment
(“Chateau Koya”) Shandong, China Shandong, China industry
or investment
Changyu (Shanghai) International Digital Acquired by
Hongkou, Hongkou,
Marketing Center Co., Ltd. ( “ Digital RMB50,000,000 Sales 100 establishment
Shanghai, China Shanghai, China
Marketing”) or investment
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Principal Proportion of
Registered Registration Business Acquisition
Name of subsidiary business shareholding
capital place nature mode
location Direct Indirect
Shanghai Changyu Guoqu Digital Acquired by
Hongkou, Hongkou,
Technology Co., Ltd. ( “ Shanghai RMB6,000,000 Sales 51 establishment
Shanghai, China Shanghai, China
Guoqu”) or investment
Acquired by
Shanghai Changyu Yixin Digital Hongkou, Hongkou,
RMB10,000,000 Sales 51 establishment
Technology Co., Ltd. (“Shanghai Yixin”) Shanghai, China Shanghai, China
or investment
Acquired by
Yantai Christon Catering Co., Ltd. Yantai, Yantai,
RMB1,000,000 Services 100 establishment
(“Christon Catering”) Shandong, China Shandong, China
or investment
Weimeisi (Shanghai) Enterprise Acquired by
Development Co., Ltd. ( “ Weimeisi RMB10,000,000 Shanghai, China Shanghai, China Sales 100 establishment
Shanghai”) or investment
Acquired by
Ningxia Longyu Food Trading Co., Ltd. Yinchuan, Yinchuan,
RMB 500,000 Sales 100 establishment
(Longyu Trading) Ningxia, China Ningxia, China
or investment
Acquired by
Beijing Changyu Trading Co., Ltd. Miyun, Beijing, Miyun, Beijing,
RMB 500,000 Sales 100 establishment
(“BeijingTrading”) China China
or investment
Huanren Manchu Autonomous County Acquired by
Benxi, Liaoning, Benxi, Liaoning,
Changyu Wine Sales Co., Ltd. (“Huanren RMB2,000,000 Sales 100 establishment
China China
Sales”) or investment
Shanghai Changyu Yixin Yida Acquired by
Hongkou, Hongkou,
E-commerce Co., Ltd. (“Shanghai Yixin RMB 500,000 Services 100 establishment
Shanghai, China Shanghai, China
Yida”) or investment
Explanation for difference between the proportion of shareholding and proportion of voting power
in the subsidiaries:
(a) Chateau Changyu is a Sino-foreign joint venture established by the Group and a foreign
investor, accounting for 70% of Changyu Chateau's equity interest. Through agreement
arrangement, the Group has the full power to control Changyu Chateau's strategic operating,
investing and financing policies. The agreement arrangement will be terminated on December
(b) AFIP is a limited liability company jointly established by the Group and Yantai De'an
Investment Co., Ltd. and Beijing Qinglang Ecological Agriculture Technology Development
Co., Ltd. The Group holds 91.53% of its equity. Through agreement arrangement, the Group
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
has the full power to control AFIP's strategic operating, investing and financing policies. The
agreement arrangement will be terminated on September 2, 2027.
Unit: yuan
Other
Profit/loss Dividend declared
Shareholding comprehensive
attributable to to be distributed Balance of minority
proportion of income attributable
Name of subsidiary minority to minority equity at the end of
minority to minority
shareholders in this shareholders in period
shareholders shareholders in this
period this period
period
AFIP 8.47% 56,409,393
Indomita Chile 15% -612,475 -745,914 56,431,050
Explanation for difference between the proportion of shareholding and proportion of voting power
of the minority shareholders in the subsidiaries: See details in Note 10.1.1.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Ending Balance Beginning Balance
Name of subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
AFIP 261,019,767 345,824,399 606,844,166 14,713,051 3,648,980 18,362,031 264,880,703 354,205,457 619,086,160 19,136,401 3,645,340 22,781,741
Indomita Chile 206,849,623 308,969,971 515,819,594 123,586,692 8,468,264 132,054,956 239,483,768 306,248,010 545,731,778 144,442,947 8,468,264 152,911,211
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Name of subsidiary Operating Total comprehensive Total comprehensive
Net profits Operating cash flow Operating income Net profits Operating cash flow
income income income
AFIP 29,693,513 -7,822,284 -7,822,284 16,061,546 41,907,720 -610,475.00 -610,475.00 1,061,336
Indomita Chile 70,363,515 -4,083,170 -9,055,929 5,350,197 78,447,574 1,891,672 6,001,476 1,874,075
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Summary financial information of unimportant joint ventures and associates
Unit: yuan
Ending balance / amount incurred Beginning balance / amount incurred
in this period in prior period
Joint ventures: -- --
Total book value of investment 21,672,719 24,933,742
Total of the following items calculated --
according to the shareholding ratio
-- Net profit -3,261,023 -2,545,542
-- Other comprehensive income
-- Total comprehensive income -3,261,023 -2,545,542
Associates: --
Total book value of investment 1,684,380 1,722,455
Total of the following items calculated
according to the shareholding ratio
-- Net profit -38,075 -472,546
-- Other comprehensive income
-- Total comprehensive income -38,075 -472,546
The Group has exposure to the following main risks from its use of financial instruments in the
normal course of the Group's operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
The following mainly presents information about the Group's exposure to each of the above
risks and their sources, their changes during the year, and the Group's objectives, policies and
processes for measuring and managing risks, and their changes during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Group's financial performance. Based on such objectives, the Group's risk
management policies are established to identify and analyze the risks faced by the Group, to
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group's activities.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group's credit risk is primarily
attributable to cash at bank, receivables, debt investments and derivative financial instruments
entered into for hedging purposes. Exposure to these credit risks are monitored by management
on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions.
Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.
As on June 30, 2026, the Group's maximum exposure to credit risk which will cause a
financial loss to the Group due to failure to discharge an obligation by the counterparties.
In order to minimize the credit risk, the Group has adopted a policy to ensure that all sales
customers have good credit records. According to the policy of the Group, credit review is
required for clients who require credit transactions. In addition, the Group continuously
monitors the balance of account receivable to ensure there's no exposure to significant bad debt
risks. For transactions that are not denominated in the functional currency of the relevant
operating unit, the Group does not offer credit terms without the specific approval of the
Department of Credit Control in the Group. In addition, the Group reviews the recoverable
amount of each individual trade debt at each balance sheet date to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard, the management of the
Group considers that the Group's credit risk is significantly reduced.
Since the Group trades only with recognized and creditworthy third parties, there is no
requirement for collateral. Concentrations of credit risk are managed by customer/counterparty,
by geographical region and by industry sector. As on June 30, 2026, 18.1% of the Group trade
receivables are due from top five customers (December 31, 2025: 37.5%). There is no
collateral or other credit enhancement on the balance of the trade receivables of the Group.
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering cash or another financial asset. The Group and its individual
subsidiaries are responsible for their own cash management, including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands (subject to approval
by the Group's board when the borrowings exceed certain predetermined levels). The Group's
policy is to regularly monitor its liquidity requirements and its compliance with lending
covenants, to ensure that it maintains sufficient reserves of cash, readily realizable marketable
securities and adequate committed lines of funding from major financial institutions to meet its
liquidity requirements in the short and longer term.
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk, respectively. The Group determines the
appropriate weightings of the fixed and floating rate interest-bearing instruments based on the
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure.
(1) As on June 30, 2026, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: yuan
June 30, 2026 December 31, 2025
Item
Effective interest rate Amount Effective interest rate Amount
Financial assets
- Monetary capital 1.15%-1.85% 60,650,000 1.30% - 2.25% 45,650,000
Financial liabilities ? ?
- Short-term loans 5.30% - 5.55% -88,541,700 5.34% - 5.85% -92,510,252
- Long-term loans (including the
portion due within one year)
- Lease liabilities (including the
portion due within one year)
Total -99,334,986 4.65% -80,545,590
Variable rate instruments:
Unit: yuan
June 30, 2026 December 31, 2025
Item
Effective interest rate Amount Effective interest rate Amount
Financial assets
- Monetary capital 0.05% - 0.55% 2,022,563,833 0.01% - 0.55% 1,843,219,212
Financial liabilities
- Short-term loans 1-year LRP-0.89% -50,000,000 1-year LPR - 0.89% -50,000,000
- Short-term loans BBSW+1.5% -8,283,492 BBSW + 1.5% -13,364,220
- Short-term loans 2.75% - 3.65% -97,526,872 2.20% - 3.90% -84,800,316
- Long-term loans (including the
portion due within one year)
Total 1,764,184,863 1,581,486,434
(2) Sensitivity analysis
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Management of the Group believes interest rate risk on bank deposit is not significant,
therefore does not disclose sensitivity analysis for interest rate risk.
As on June 30, 2026, based on assumptions above, it is estimated that a general increase of 50
basis points in interest rates, with all other variables held constant, would decrease the Group's
equity by RMB 484,461 yuan (2025: RMB 981,498 yuan), and net profit by RMB 484,461
yuan (2025: RMB 981,498 yuan).
The sensitivity analysis above indicates the instantaneous change in the net profit and equity
that would arise assuming that the change in interest rates had occurred at the balance sheet
date and had been applied to re-measure those financial instruments held by the Group which
expose the Group to fair value interest rate risk at the balance sheet date. In respect of the
exposure to cash flow interest rate risk arising from floating rate non-derivative instruments
held by the Group at the balance sheet date, the impact on the net profit and equity is estimated
as an annualized impact on interest expense or income of such a change in interest rates.
In respect of cash at bank and on hand, accounts receivable and payable, short-term loans
denominated in foreign currencies other than the functional currency, the Group ensures that its
net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates
when necessary to address short-term imbalances.
(1) As at June 30, 2026, the Group's exposure to currency risk arising from recognised assets
or liabilities denominated in foreign currencies is presented in the following tables. For
presentation purposes, the amounts of the exposure are shown in Renminbi, translated
using the spot rate at the balance sheet date. Differences resulting from the translation of
the financial statements denominated in foreign currency are excluded.
Unit: yuan
June 30, 2026 December 31, 2025
Item
Balance at foreign Balance at RMB Balance at foreign Balance at RMB
Monetary capital 18,123,421 873,531 6,189,815
- USD 256,605 1,747,711 832,131 5,848,885
- EUR 135,837 1,055,060 41398 340929
- HKD 17,507,344 15,206,004 2 1
- CAD 23,961 114,646
Short-term borrowings 88,541,700 92,510,252
- USD 13,000,000 88,541,700 13,125,000 92,510,252
(2) Sensitivity analysis
Assuming all other risk variables remained constant, a 5% strengthening of the Renminbi
against the US dollar and Euro at June 30, 2026 would have impact on the Group's equity and
net profit by the amount shown below, whose effect is in Renminbi and translated using the
spot rate at the year-end date:
Unit: yuan
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Item Equity Net profits
June 30, 2026
USD 4,339,699 4,339,699
EUR -52,753 -52,753
HKD -760,300 -760,300
CAD -5,732 -5,732
Total 3,520,914 3,520,914
December 31, 2025
USD 3,253,771 3,253,771
EUR -12,543 -12,543
HKD
Total 3,241,228 3,241,228
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30, 2026
would have had the equal but opposite effect to the amounts shown above, on the basis that all
other variables remained constant.
All financial assets and financial liabilities held by the Group are carried at amounts not
materially different from their fair value at June 30, 2026.
Proportion of Proportion of voting
Name of parent shareholding of the powers of the parent
Registration place Business nature Registered capital
company parent company in company in the
the Company Company
Manufacturing
Changyu Group Yantai City 50,000,000 52.56% 52.56%
industry
From January to June 2026, there was no fluctuation in the registered capital of the parent
company and its share in equity interest and voting right.
See particulars of the subsidiaries of the Company in Note 10.
Other joint ventures and associates that have related party transactions with the Group during
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
this period or that formed balance when having related party transactions with the Group
during the prior period are as follows:
Name of joint ventures and associates Relationship with the Company
L&M Holdings Joint venture of the Group
Shanghai Yufeng Brand Management Co., Ltd. ( “ Shanghai
Associates of the Group
Yufeng”)
Yantai Guolong Wine Industry Co., Ltd. (“Yantai Guolong”) Associates of the Group
Taizhou Changyu Wine Sales Co., Ltd. (“Taizhou Changyu”) Associates of the Group
Relationship between other related parties and the
Name of other related parties
Company
Yantai God Horse Packing Co., Ltd. (“God Horse Packing”) A company controlled by the same parent company
Appointment of directors, supervisors and senior
Yantai Zhongya Zhibao Pharmaceutical Co., Ltd. (“Zhongya Zhibao”)
executives of the Group
Societe Civile Argricole Du Chateau De Mirefleurs (“French Mirefleurs”) Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”) Subsidiaries of the joint venture
Yantai Changyu Wine Culture Museum Co., Ltd. (“Museum”) Non-profit organizations related to the Company
services
List of purchasing goods/receiving services
Unit: yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
God Horse Packing Purchasing goods 23,255,290 27,190,017
Zhongya Zhibao Purchasing goods 12,676 24,837
French Mirefleurs Purchasing goods 3,048,363 8,051,588
Shanghai Yufeng Purchasing goods 154,593 25,442
List of selling goods/providing services
Unit: yuan
Amount incurred in this
Related parties Related transactions Amount incurred in prior period
period
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Amount incurred in this
Related parties Related transactions Amount incurred in prior period
period
Zhongya Zhibao Selling goods 2,617,658 2,223,769
God Horse Packing Selling goods 472 3,008
Shanghai Yufeng Selling goods 1,006,025 344,063
Taizhou Changyu Selling goods 5,631,827 8,489,159
The price of transactions between the Group and the related parties are based on the negotiated
price.
Nil
The Group as a lessor:
Unit: yuan
Rental income recognized in Rental income recognized in prior
Name of the lessee Type of leased assets
this period period
God Horse Packing Office building and plant 746,275 746,275
Zhongya Zhibao Office building 464,220 481,905
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
The Group as a lessee:
Unit: yuan
Rental expenses for
Variable lease payments not
short-term leases and leases
included in the measurement Interest expenses on Right-of-use assets
of low-value assets of Rent paid
of lease liabilities (if lease liabilities assumed increased
simplified treatment (if
applicable)
Name of the lessor Type of leased assets applicable)
Amount Amount Amount Amount
Amount Amount Amount Amount Amount Amount
incurred incurred in incurred incurred
incurred in incurred in incurred in incurred in incurred in incurred in
in this prior in prior in prior
prior period this period prior period this period this period this period
period period period period
Office building, plant,
Changyu Group 7,480,362 7,480,362 680,841 185,036
commercial building
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Nil
Nil
Nil
Unit: yuan
Related parties Amount incurred in this Amount incurred in prior
Item
period period
Changyu Group Trademark use fee 6,470,914 5,451,141
The price of transactions between the Group and the related parties are based on the
negotiated price.
Unit: yuan
Ending Balance Beginning Balance
Project name Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
Zhongya Zhibao 506,000 1,316
receivable
Unit: yuan
Project name Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 11,200,416 25,095,928
Accounts payable Zhongya Zhibao 1,572,709
Accounts payable Shanghai Yufeng 61,365
Accounts payable French Mirefleurs 744,426
Liabilities of contracts Taizhou Changyu 1,817,674
Liabilities of contracts Yantai Guolong 51,696 51,696
Liabilities of contracts God Horse Packing 11,835 11,835
Liabilities of contracts Changyu Group 41,964 41,964
Other payable Changyu Group 7,992,555 17,082,233
Other payable God Horse Packing 400,000 400,000
Other payable Yantai Guolong 50,000
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Other payable Zhongya Zhibao 2,960,553
According to the resolution of 2022 Annual General Meeting of Shareholders held by the
Group on May 26, 2023, and the approved Proposal on 2023 Restricted Stock Incentive Plan
(Draft) of the Company and Its Abstract and Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors to Handle Matters Related to 2023
Restricted Stock Incentive Plan of the Company, and the Proposal on Adjusting Relevant
Matters of 2023 Restricted Stock Incentive Plan and the Proposal on Granting Restricted
Stocks to Incentive Objects of 2023 Restricted Stock Incentive Plan, which were reviewed and
approved at the first 2023 extraordinary board meeting held on June 26, 2023, the Group has
determined June 26, 2023 as the grant date to grant 6,850,000 restricted stocks to 204
incentive objects at a grant price of 15.24 yuan per stock. A total of 203 incentive objects in
this Group actually subscribed for 6,785,559 restricted stocks, with a grant price of 15.24
yuan per stock. This transaction increased the registered capital by RMB 6,785,559 yuan and
increased the capital reserve by RMB 96,626,360 yuan.
All restricted stocks granted to incentive objects are subject to different lock-up periods,
which are 12 months, 24 months, and 36 months respectively from the completion of grant
registration of restricted stocks granted to incentive objects. The restricted stocks granted to
incentive objects under this incentive plan shall not be transferred, used as collateral, or used
to repay debts during the lock-up period. All restricted stocks granted to incentive objects will
be unlocked in three phases after 12 months from the grant date, with unlocking ratios of
and 3 years from the grant date. The actual unlocking quantity shall be linked to the annual
performance evaluation.
When the performance of this Company meets corresponding conditions, the unlocking ratio
of the above-mentioned restricted stocks for the current period is determined based on the
operating performance of the incentive object's unit and the value contribution of the
incentive object. If the unlocking conditions stipulated in this plan are not met, the incentive
object shall not unlock restricted stocks in the current period, and the Company shall
repurchase them according to the grant price to incentive object.
The Group held its second 2024 Remuneration Committee meeting of the Board of Directors,
its fourth 2024 extraordinary board meeting, and its second 2024 extraordinary Supervisory
Committee meeting on July 22, 2024. The meetings reviewed and approved the Proposal on
Achievement of the First Lifting of Lock-up Period and Lifting of Lock-up Conditions for
Company's 2023 Restricted Stock Incentive Plan and Proposal on the Repurchase and
Cancellation of Part of the Restricted Shares under the Company's 2023 Restricted Stock
Incentive Plan and Adjustment of the Repurchase Price. At the third extraordinary general
shareholders' meeting held on August 8, 2024, the resolution on the Proposal on the
Repurchase and Cancellation of Part of the Restricted Shares under the Company's 2023
Restricted Stock Incentive Plan and Adjustment of the Repurchase Price was approved. A
total of 172 incentive recipients of the first tranche of restricted shares in 2024 have been
lifted from the lock-up conditions, the number of restricted stocks that can be lifted is
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
conditions is August 6, 2024. This transaction resulted in a decrease in treasury shares of
RMB 26,220,343 yuan. A total of 425,666 restricted shares were repurchased and cancelled,
including 157,790 shares repurchased and cancelled because the incentive recipients no
longer met the conditions of the Company's 2023 Restricted Stock Incentive Plan due to
resignation or position changes, and 267,876 shares repurchased and cancelled because they
could not be lifted from the first lock-up period due to personal performance assessment
results. This transaction led to a decrease in share capital of RMB 425,666 yuan, a decrease
in capital reserve of RMB 6,061,484 yuan, and a decrease in treasury shares of RMB
The Group held its third 2025 Remuneration Committee meeting, its second meeting of the
tenth session of the Board of Directors, and its first meeting of the ninth session of the
Supervisory Committee on July 25, 2025. The meetings reviewed and approved the Proposal
on the Non-fulfillment of Conditions for the Second Release Tranche under the Company's
Part of the Restricted Shares under the Company's 2023 Restricted Stock Incentive Plan and
Adjustment of the Repurchase Price. At the first extraordinary general shareholders' meeting
held on August 12, 2025, the resolution on the Proposal on the Repurchase and Cancellation
of Part of the Restricted Shares under the Company's 2023 Restricted Stock Incentive Plan
and Adjustment of the Repurchase Price was approved. A total of 2,153,772 restricted shares
were repurchased and cancelled, including 289,467 shares repurchased and cancelled because
the incentive recipients no longer met the conditions of the Company's 2023 Restricted Stock
Incentive Plan due to resignation or position changes, and 1,864,305 shares repurchased and
cancelled because they could not be lifted from the second lock-up period due to personal
performance assessment results. This transaction led to a decrease in share capital of RMB
year 2025.
As of June 30, 2026, the cumulative amount of equity-settled share-based payments
recognized in capital reserve amounted to RMB 26,719,287 yuan.
Unit: yuan
Method for determining the fair value of equity instruments on
Restricted stock: stock price on grant date minus grant price
grant date
Basis for determining the number of exercisable equity
Management's best estimate
instruments
Reasons for significant differences between the current
estimate and the prior estimate
Accumulated amount of equity-settled share-based payments
included in capital reserve
Total amount of expenses recognized as equity-settled
share-based payments in this period
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Item Ending Balance Beginning Balance
Making long-term asset commitments 14,939,200 29,302,000
As of the balance sheet date, the Group didn't have any contingency to be disclosed.
The Group held its fourth 2026 Remuneration Committee meeting, and its fifth 2026
extraordinary board meeting on July 26, 2026. The meetings approved the Proposal on the
Non-fulfillment of Conditions for the Third Release Tranche under the Company's 2023
Restricted Stock Incentive Plan and Proposal on the Repurchase and Cancellation of Part of
the Restricted Shares under the Company's 2023 Restricted Stock Incentive Plan and
Adjustment of the Repurchase Price. At the second extraordinary general shareholders'
meeting held on August 12, 2026, the Proposal on the Repurchase and Cancellation of Part
of the Restricted Shares under the Company's 2023 Restricted Stock Incentive Plan and
Adjustment of the Repurchase Price was approved. As the conditions for the third lock-up
period under the Company's 2023 Restricted Stock Incentive Plan were not satisfied, the
relevant granted restricted shares are required to be repurchased and cancelled. A total of
meet the performance assessment requirements, at a repurchase price of RMB 14.62 yuan per
share. The total repurchase consideration payable by the Company for this repurchase of
restricted shares is RMB 36,346,800 yuan. Upon completion of this repurchase and
cancellation, the total number of issued shares of the Company will be reduced from
cancellation, there will be no change to the Company's controlling shareholders or actual
controller.
Nil
Unit: yuan
Age Ending Balance Beginning Balance
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Within 1 year (including 1 year) 517,000
Over 3 years
Total 517,000
Unit: yuan
Ending Balance Beginning Balance
Provision for bad Provision for bad
Type Book balance Book balance
debts Book debts Book
Accrued value Accrued value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable for
which provision for
bad debts is
accrued on a single
item basis
Accounts
receivable for
which provision for
bad debts is
accrued on a
combined basis
Total 517,000 100% 1,344 0.26% 515,656
Provision for bad debts accrued in this period:
Unit: yuan
Changes in this period
Beginning
Type Withdrawn or Ending Balance
balance Accrual Cancelled
transferred back
Accounts receivable
for which provision for
bad debts is accrued on
a single item basis
Provision for bad debts
is accrued on a 1,344 1,344
combined basis
Total 1,344 1,344
Nil
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
ranked by ending balance
Unit: yuan
Ending balance of
Percentage in total
Ending balance of bad debts
Ending balance of ending balance of
Ending balance of accounts provision and
Unit Name accounts accounts
contract assets receivable and provision for
receivable receivable and
contract assets impairment of
contract assets
contract assets
Zhongya Zhibao 506,000 506,000 97.9% 1,316
Tianji 11,000 11,000 2.1% 28
Total 517,000 517,000 100% 1,344
Nil
Nil
Unit: yuan
Item Ending Balance Beginning Balance
Interests receivable
Dividends receivable 3,495,195 20,000,000
Other receivables 531,106,606 686,617,690
Total 534,601,801 706,617,690
Unit: yuan
Item (or the invested unit) Ending Balance Beginning Balance
Dividends receivable from subsidiaries 3,495,195 20,000,000
Total 3,495,195 20,000,000
Unit: yuan
Nature Ending Balance Beginning Balance
Accounts receivable from subsidiaries 463,264,152 606,611,486
Others 75,109,063 88,172,813
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Nature Ending Balance Beginning Balance
Total 538,373,215 694,784,299
Unit: yuan
Age Ending Balance Beginning Balance
Within 1 year (including 1 year) 276,174,603 417,489,585
Over 3 years 101,736 101,736
Total 538,373,215 694,784,299
Changes in this period
Beginning Withdrawn or
Type Transfer back Ending Balance
Balance Accrual transferred Others
or write-off
back
Individual
accrual
Total 8,166,609 -900,000 7,266,609
The provision for bad debts accrued in this period was RMB -900,000 yuan; and that
withdrawn or transferred back in this period was RMB 0 yuan.
Nil
ending balance
Unit: yuan
Percentage in total
Ending balance of
ending balance of
Unit Name Nature Ending Balance Age provision for bad
other accounts
debts
receivable
Accounts receivable
Sales company 267,018,392 Within 1 year 49.6%
from subsidiaries
Accounts receivable Within 1 year and 1-2
Atrio Group 136,294,427 25.3%
from subsidiaries years
Laizhou Zhuqiao Town Compensation
People's Government, receivable from the
Laizhou Yidao Town disposal of
People's Government vineyards
Accounts receivable Within 1 year and 1-2
Kilikanoon Estate 52,972,215 9.8%
from subsidiaries years
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Percentage in total
Ending balance of
ending balance of
Unit Name Nature Ending Balance Age provision for bad
other accounts
debts
receivable
Yantai Municipal Finance Housing
Bureau maintenance fund
Total 531,654,727 98.7% 7,266,609
Nil
Nil
Nil
Unit: yuan
Ending Balance Beginning Balance
Item
Book balance Depreciation Book value Book balance Depreciation Book value
reserves reserves
Investment in subsidiaries 7,737,521,508 97,669,546 7,639,851,962 7,737,521,508 97,669,546 7,639,851,962
Investment in associated
enterprises and joint
Total 7,737,521,508 97,669,546 7,639,851,962 7,737,521,508 97,669,546 7,639,851,962
Unit: yuan
Movements during the period Ending
Beginning
Beginning Ending balance of
balance of Accrual
Investee balance (book Increase Decrease balance (book provision
provision for provision for Others
value) in capital in capital value) for
impairment impairment impairment
Kylin Packaging 23,553,931 23,553,931
Changyu Chateau 29,281,772 29,281,772
Pioneer International 4,464,714 4,464,714
Ningxia Growing 36,573,247 36,573,247
National Wine 2,000,000 2,000,000
Icewine Valley 85,638,472 85,638,472
AFIP 588,648,215 588,648,215
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Movements during the period Ending
Beginning
Beginning Ending balance of
balance of Accrual
Investee balance (book Increase Decrease balance (book provision
provision for provision for Others
value) in capital in capital value) for
impairment impairment impairment
Sales Company 18,952,112 18,952,112
Wine Sales 5,109,166 5,109,166
Shanghai Marketing 1,000,000 1,000,000
Beijing Sales 850,000 850,000
Jingyang Wine 900,000 900,000
Ningxia Wine 222,309,388 222,309,388
Ningxia Chateau 453,760,284 453,760,284
Chateau Tinlot 212,039,586 212,039,586
Shihezi Chateau 812,311,899 812,311,899
Longue Chanson
Chateau
R&D Company 3,290,268,550 3,290,268,550
Wine Sales
Company
Francs Champs 236,025,404 236,025,404
Atrio Group 221,916,810 11,225,459 221,916,810 11,225,459
Indomita Chile 274,248,114 274,248,114
Kilikanoon Estate,
Australia
Digital marketing 50,191,439 50,191,439
Chateau Koya 110,337,503 110,337,503
Shanghai Weimeisi 7,910,985 7,910,985
Changyu Cultural
Tourism Company
Development Zone
Trading
Penglai Wine
Industry
Longkou Sales 1,611,286 1,611,286
Laizhou Sales 87,342 87,342
Yantai Roullet
Fransac
Museum 265,162 265,162
Window of Wine
City
AFIP Tourism 162,952 162,952
Meeting Center 102,210 102,210
Ningxia Trading 162,952 162,952
Christon Catering 102,210 102,210
Total 7,639,851,962 97,669,546 7,639,851,962 97,669,546
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 155,254,347 137,104,339 160,834,485 143,910,902
Others businesses 1,220,972 1,126,695 1,760,482 1,355,077
Total 156,475,319 138,231,034 162,594,967 145,265,979
Including: Income from
contracts
Income from house
rents
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
- Alcoholic beverage 155,254,347 137,104,339
- Others
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 155,254,347 137,104,339
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Income from long-term equity investment by cost method 173,495,195 46,246,053
Income from long-term equity investment by equity
method
Investment income from disposal of long-term equity
investment
Investment income of the financial assets measured at
their fair values and the variation of which is recorded
into the current profits and losses during the holding
period
Investment income gained from disposal of the financial
assets measured at their fair values and the variation of
which is recorded into the current profits and losses
Investment income of held-to-maturity investment during
the holding period
Investment income of financial assets held for sale during
the holding period
Investment income gained from disposal of financial
assets held for sale
Gains generated from the remaining equity remeasured as
per fair value after the loss of control
Total 173,495,195 46,246,053
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
Unit: yuan
Item Amount Remark
Profits/losses on disposal of non-current assets 38,966
Governmental subsidy included in the current profits/losses (excluding those closely related to
the enterprise business and enjoyed in accordance with the unified standard quota or ration of 8,354,311
the state)
Profits/losses on changes of fair value of financial assets and financial liabilities of
non-financial business, and profits/losses from disposal of financial assets and financial
liabilities, excluding effective hedging operations relevant to the normal business of the
Company
Payment for use of funds by non-financial enterprises included in the current profits/losses
Profits/losses on entrusting other people to make investment or manage assets
Profits/losses on external entrusted loans
Asset impairment provision accrued due to force majeure such as natural disaster
Transfer-back of accounts receivable provision for impairment with single impairment test
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
Current net profits/losses on subsidiaries acquired from a business combination under common
control from the beginning to the consolidation date
Profits/losses on exchange of non-monetary assets
Profits/losses on debt restructuring
One-time expenses incurred by enterprises due to the discontinuation of related business
activities, such as expenses for resettling employees, etc
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
One-time confirmation of share-based payment expenses due to cancellation or modification of
equity incentive plan
For cash-settled share-based payment, profits/losses arising from changes in fair value of
employee compensation payable after the exercise date
Profits/losses on fair value changes of investment real estate with fair value mode for follow-up
measurement
Profits generated from transactions with unfair transaction price
Profits/losses on contingencies irrelated to the normal business of the Company
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items 2,420,717
Other profits/losses conforming to the definition of non-recurrent profits/losses
Minus: Influenced amount of income tax 2,592,122
Influenced amount of minority equity 664,846
Total 7,557,026 --
Profit in reporting period Weighted average Earnings per share
Yantai Changyu Pioneer Wine Co., Ltd. 2026 Semi-annual Report
return on net assets Diluted EPS
Basic EPS (yuan/Share)
(yuan/Share)）
Net profit attributable to common shareholders of the
Company
Net profit attributable to common shareholders of the
Company deducting non-recurrent profits/losses
the international accounting standard and Chinese accounting standard
Unit: yuan
Net profits Net assets
Amount incurred in Amount incurred in
Ending Balance Beginning Balance
this period prior period
In accordance with the
Chinese accounting 140,515,805 185,597,142 10,276,824,571 10,347,247,577
standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 140,515,805 185,597,142 10,276,824,571 10,347,247,577
standard
Yantai Changyu Pioneer Wine Co., Ltd.
Board of Directors
August 21, 2026
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