2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Financial Report
1. Audit report
Whether the semiannual report has been audited
□ Yes √ No
2. Financial statement
The unit in the statements of the financial annotations is RMB Yuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. June 30 2020 Unit: Yuan
Item Note June 30 2020 December 31 2019
Current assets:
Monetary fund 7.1 1476207055 1565783980
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 7.2 167738633 266218153
Receivables financing 7.3 222918741 316470229
Advance payment 7.4 10200527 67707537
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.5 25594801 24246812
Including: Interest receivable 698347 148927
Dividends receivable
Redemptory monetary capital for sale
Inventories 7.6 2936133260 2872410407
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.7 262917721 267424938
Total current assets 5101710738 5380262056
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.8 42810445 43981130
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note June 30 2020 December 31 2019
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.9 28344687 29714586
Fixed assets 7.10 5818499845 5894068898
Construction in progress 7.11 647036593 567478833
Productive biological assets 7.12 196238591 202425286
Oil-and-gas assets
Right-of-use assets
Intangible assets 7.13 641220580 651946355
Development expenditure
Goodwill 7.14 141859193 141859193
Long-term prepaid expenses 7.15 270769497 277595408
Deferred income tax assets 7.16 214323893 264926503
Other non-current assets 7.17 184158436 193674320
Total non-current assets 8185261760 8267670512
Total assets 13286972498 13647932568
Current liabilities:
Short-term loans 7.18 737183701 754313744
Borrowings from the Central Bank
Loans from other banks and other financial institutions
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.19 379727980 570252612
Advances from customers 120609499
Contract liabilities 7.20 100523260
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.21 139862928 234459116
Taxes and dues payable 7.22 154572275 375169971
Other payables 7.23 793033613 450532485
Including: Interest payable 2167287 758047
Dividends payable 480819925 1366559
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.24 98996064 150826221
Other current liabilities 13068024
Total current liabilities 2416967845 2656163648
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.25 218613336 128892501
Bonds payable
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note June 30 2020 December 31 2019
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable 7.26 167000000 191000000
Long-term employee remunerations payable
Estimated liabilities
Deferred income 7.27 61772908 70701288
Deferred income tax liabilities 7.16 14303137 14691424
Other non-current liabilities 7.28 7645777 7645777
Total non-current liabilities 469335158 412930990
Total liabilities 2886303003 3069094638
Owner’s equity:
Capital stock 7.29 685464000 685464000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 7.30 565050422 565050422
Minus: Treasury stock
Other comprehensive income 7.31 -9242236 -4235583
Special reserves
Surplus reserves 7.32 342732000 342732000
General risk preparation
Undistributed profit 7.33 8547110131 8719899359
Total owner’s equities attributable to the parent company 10131114317 10308910198
Minority equity 269555178 269927732
Total owner’s equities 10400669495 10578837930
Total liabilities and owner’s equities 13286972498 13647932568
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: Yuan
Item Note June 30 2020 December 31 2019
Current assets:
Monetary fund 798084475 710505269
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 17.1 302260 1988326
Receivables financing 34212039 41679635
Advance payment 33862 776539
Other receivables 17.2 278883935 586424958
Including: Interest receivable 464614 90355
Dividends receivable 2985375 200000000
Inventories 501196687 434007808
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note June 30 2020 December 31 2019
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 37051338 39130466
Total current assets 1649764596 1814513001
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 17.3 7437422621 7432422621
Other investments in equity instruments
Other non-current financial assets
Investment real estate 28920958 29714586
Fixed assets 250196215 261137072
Construction in progress
Productive biological assets 117388982 121414096
Oil and gas assets
Right-of-use assets
Intangible assets 63675337 64864913
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred income tax assets 17961520 16255870
Other non-current assets 1524700000 1427700000
Total non-current assets 9440265633 9353509158
Total assets 11090030229 11168022159
Current liabilities:
Short-term loans 150000000 150000000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 32575693 63655240
Advances from customers
Contract liabilities
Employee remunerations 57841188 70445847
Taxes and dues payable 4129507 6052456
Other payables 1038359009 660149563
Including: Interest payable 137671 181250
Dividends payable 479824800
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1282905397 950303106
Non-current liabilities:
Long-term borrowings
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note June 30 2020 December 31 2019
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term employee remuneration payable
Estimated liabilities
Deferred income 7459789 9176315
Deferred income tax liabilities
Other non-current liabilities 3146706 3146707
Total non-current liabilities 10606495 12323022
Total liabilities 1293511892 962626128
Owner’s equity:
Capital stock 685464000 685464000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 557222454 557222454
Minus: Treasury stock
Other comprehensive income
Special reserves
Surplus reserves 342732000 342732000
Undistributed profit 8211099883 8619977577
Total owner’s equities 9796518337 10205396031
Total liabilities and owner’s equities 11090030229 11168022159
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Total operating income 1401606792 2558274785
Including: Operating income 7.34 1401606792 2558274785
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1040122175 1818822580
Including: Operating costs 7.34 574650677 936252225
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
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Amortized reinsurance expenditures
Item Note Sum of current period Sum of prior period
Taxes and surcharges 7.35 88103493 123550848
Selling expenses 7.36 250531046 591970801
Administrative expenses 7.37 113069869 155552312
Research and development expenses 7.38 1805988 2706811
Financial expenses 7.39 11961102 8789583
Including: Interest expenses 14891310 9812560
Interest income 6088281 4606417
Plus: Other profit 7.40 49780231 64211892
Investment profit (loss is listed with "-") 7.41 -1170685
Including: Investment profit for joint-run business and joint
venture
-1170685
Financial assets measured at amortized cost cease
to be recognized as income (loss is listed with
"-")
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 "-") 7.42 100835 -765935
Asset impairment loss (loss is listed with "-") 7.43 4242813 6148729
Income from asset disposal (loss is listed with "-") 7.44 39641 1138
3. Operating profit (loss is listed with "-") 414477452 809048029
Plus: Non-operating income 7.45 4682230 3575914
Minus: Non-operating expenses 7.46 867273 164050
4. Total profits (total loss is listed with "-") 418292409 812459893
Minus: Income tax expenses 7.47 109689969 210281578
5. Net profit (net loss is listed with "-") 308602440 602178315
5.1 Classification by operation continuity
5.1.1 Net profit from continuing operation (net loss is listed with
"-")
308602440 602178315
5.1.2 Net profit from terminating operation (net loss is listed
with "-")
5.2 Classification by ownership
5.2.1 Net profit attributable to owner of the parent company 307035572 603403789
5.2.2 Minority interest income 1566868 -1225474
6. Net after-tax amount of other comprehensive income 7.48 -5765822 -4657291
Net after-tax amount of other comprehensive income attributable to
owner of the parent company
-5006653 -3060721
6.1 Other comprehensive income not to be reclassified into profit and
loss later
6.1.1 Changes after remeasuring and resetting the benefit plans
6.1.2 Other comprehensive income not to be reclassified into profit
and loss under equity law
6.1.3 Changes in the fair value of other investments in equity
instruments
6.1.4 Changes in the fair value of the enterprise's own credit risk
6.1.5 Other
6.2 Other comprehensive income to be reclassified into profit and
loss later
-5006653 -3060721
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
6.2.1 Other comprehensive income to be reclassified into profit and
loss under equity law
6.2.2 Changes in the fair value of other debt investments
6.2.3 Amount of financial assets reclassified into other
comprehensive income
6.2.4 Provision for credit impairment of other credit investments
6.2.5 Provision for cash-flow hedge
6.2.6 Difference in translation of Foreign Currency Financial
Statement
-5006653 -3060721
6.2.7 Other
Net after-tax amount of other comprehensive income attributable to
minority shareholders
-759169 -1596570
7. Total comprehensive income 302836618 597521024
Attributable to owner of the parent company 302028919 600343068
Attributable to minority shareholders 807699 -2822044
8. Earnings per share:
8.1 Basic earnings per share 0.45 0.88
8.2 Diluted earnings per share 0.45 0.88
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Operating income 17.4 152950515 352351002
Minus: Operating costs 17.4 143241194 309570580
Taxes and surcharges 4379365 13140156
Selling expenses
Administrative expenses 30150311 39434246
Research and development expenses 318917 405061
Financial expenses 934777 -3657370
Including: Interest expenses 2807750 -2705073
Interest income 2251235 1470667
Plus: Other profit 1819890 1716527
Investment profit (loss is listed with "-") 17.5 87474604 264221755
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 "-") 599632
Asset impairment loss (loss is listed with "-")
Income from asset disposal (loss is listed with "-")
2. Operating profit (loss is listed with "-") 63820077 259396611
Plus: Non-operating income 2007235 703559
Minus: Non-operating expenses 525000 97638
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
3. Total profits (total loss is listed with "-") 65302312 260002532
Item Note Sum of current period Sum of prior period
Minus: Income tax expenses -5644794 -726946
4. Net profit (net loss is listed with "-") 70947106 260729478
4.1Net profit from continuing operation (net loss is listed with
"-")
70947106 260729478
4.2 Net profit from terminating operation (net loss is listed with
"-")
5. Net after-tax amount of other comprehensive income
5.1 Other comprehensive income not to be reclassified into profit and
loss later
5.1.1 Changes after remeasuring and resetting the benefit plans
5.1.2 Other comprehensive income not to be reclassified into profit
and loss under equity law
5.1.3 Changes in the fair value of other investments in equity
instruments
5.1.4 Changes in the fair value of the enterprise's own credit risk
5.1.5 Other
5.2 Other comprehensive income to be reclassified into profit and
loss later
5.2.1 Other comprehensive income to be reclassified into profit and
loss under equity law
5.2.2 Changes in the fair value of other debt investments
5.2.3 Amount of financial assets reclassified into other
comprehensive income
5.2.4 Provision for credit impairment of other credit investments
5.2.5 Provision for cash-flow hedge
5.2.6 Difference in translation of Foreign Currency Financial
Statement
5.2.7 Other
6. Total comprehensive income 70947106 260729478
7. Earnings per share:
7.1 Basic earnings per share 0.10 0.38
7.2 Diluted earnings per share 0.10 0.38
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: Yuan
Item Note Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 1488831127 2399548448
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
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note Sum of current period Sum of prior period
Cash received from collecting interest handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchasement business funds
Net cash received for buying and selling securities
Tax refund received 23217782 20038271
Other cash received related to operating activities 7.49 48173534 67785620
Subtotal of cash flows of operating activities 1560222443 2487372339
Cash paid for goods and services 630954042 718093432
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 231967796 278638333
Cash paid for taxes and expenses 467810691 598384101
Other cash paid related to operating activities 7.49 259142735 392780467
Sub-total of cash outflows of operating activities 1589875264 1987896333
Net cash flow from operating activities -29652821 499476006
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 60128600 104597650
Cash received from obtaining investment income
Cash received from obtaining interest income 1160244 1004552
Cash received from disposal of fixed assets intangible assets and
other long-term assets
131978 175837
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 61420822 105778039
Cash paid to acquire fixed assets intangible assets and other
long-term assets
65946953 135073897
Cash for investment
Cash paid for purchasing fixed deposits 35200000 85238750
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 101146953 220312647
Net cash flow from investing activities -39726131 -114534608
3. Cash flow from financing activities
Cash received from acquiring investment
Including: cash received from acquiring minority shareholders
investment by branch
Cash received from acquiring loans 778228305 656495139
Other cash received related to financing activities
Subtotal cash flows of financing activities 778228305 656495139
Cash paid for paying debts 758287985 658033492
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note Sum of current period Sum of prior period
Cash paid for distributing dividend and profit or paying interest 15235695 16590004
Including: dividend and profit paid to minority shareholders by
branch
1551687
Other cash paid related to financing activities
Subtotal of cash outflows of financing activities 773523680 674623496
Net cash flow from financing activities 4704625 -18128357
4. Influences of exchange rate fluctuation on cash and cash
equivalents
-307959 53702
5. Net Increase in cash and cash equivalents -64982286 366866743
Plus: balance at the beginning of the period of cash and cash
equivalents
1365772675 1206860334
6. Balance at the end of the period of cash and cash equivalents 1300790389 1573727077
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.6 Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: Yuan
Item Sum of current period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 176514170 219405421
Tax refund received
Other cash received related to operating activities 14486373 57674830
Subtotal of cash flows of operating activities 191000543 277080251
Cash paid for goods and services 149176637 163184301
Cash paid to and on behalf of employees 25497870 45116586
Cash paid for taxes and expenses 2648464 22530113
Other cash paid related to operating activities 107931895 321847893
Sub-total of cash outflows of operating activities 285254866 552678893
Net cash flow from operating activities -94254323 -275598642
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 15200000 40000000
Cash received from obtaining investment income 287246945 760152668
Cash received from obtaining interest income 142759 484857
Net cash received from disposal of fixed assets intangible assets and
other long-term assets
7519
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 302589704 800645044
Cash paid to acquiring fixed assets intangible assets and other
long-term assets
1040048 10164233
Cash for investment 5000000 13000000
Cash paid for purchasing fixed deposits 15200000 85238750
Net cash paid for acquiring branch and other business unit
Other cash paid related to investment activities 97000000
Subtotal of cash outflows of investment activities 118240048 108402983
Net cash flow from investing activities 184349656 692242061
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item Sum of current period Sum of prior period
3. Cash flow from financing activities
Cash received from acquiring investment
Cash received from acquiring loans 150000000
Other cash received related to financing activities
Subtotal cash flows of financing activities 150000000
Cash paid for debts 150000000
Cash paid to distribute dividend profit or pay interest 2748375 3248000
Other cash paid related to financing activities
Subtotal of cash outflows of financing activities 152748375 3248000
Net cash flow from financing activities -2748375 -3248000
4. Influences of exchange rate fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash equivalents 87346958 413395419
Plus: balance at the beginning of the period of cash and cash
equivalents
623116542 532384882
6. Balance at the end of the period of cash and cash equivalents 710463500 945780301
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
2.7 Consolidated owner’s equity changing list
Unit: Yuan
Item
This period
Owners’ equity of the parent company
Minority
shareholders’
equity
Total owners’
equity Capital stock
Other equity
instruments Capital
reserves
Minus:
Treasury
stock
Other
comprehensive
income
Special
reserves
Surplus
reserves
General
risk
preparation
Undistributed
profits
Other Subtotal
Preferred
stock
Perpetual
bonds
Other
1. Balance at the end of
last year
685464000 565050422 -4235583 342732000 8719899359 10308910198 269927732 10578837930
Plus: Accounting
policies changing
Previous error
correction
Business combination
under common control
Other
2. Balance at the
beginning of this year
685464000 565050422 -4235583 342732000 8719899359 10308910198 269927732 10578837930
3. Increased or
decreased amount in
this period (reducing
amount is listed with
"-")
-5006653 -172789228 -177795881 -372554 -178168435
3.1 Total
comprehensive income
-5006653 307035572 302028919 807699 302836618
3.2 Owners' invested
and reduced capital
3.2.1 Owner’ invested
common stock
3.2.2 Other equity
instrument holders’
invested capital
3.2.3 Amount of shares
paid and reckoned in
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
owners' equity
3.2.4 Other
3.3 Profit distribution -479824800 -479824800 -1180253 -481005053
3.3.1 Accrued surplus
reserves
3.3.2 Accrued general
risk preparation
3.3.3 Distribution to
owners (or
shareholders)
-479824800 -479824800 -1180253 -481005053
3.3.4 Other
3.4 Internal transfer of
owners' equity
3.4.1 Capital reserves
transferred and
increased capital (or
capital stock)
3.4.2 Surplus reserves
transferred and
increased capital (or
capital stock)
3.4.3 Surplus reserves
covering deficit
3.4.4 Retained earnings
carried over from the
benefit plan variation
3.4.5 Retained earnings
carried over from other
comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Withdrawal in this
period
3.5.2 Usage in this
period
3.6 Other
4. Balance at the end of
this period
685464000 565050422 -9242236 342732000 8547110131 10131114317 269555178 10400669495
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item
Last period
Owners’ equity of the parent company
Minority
shareholders’
equity
Total owners’
equity Capital stock
Other equity
instruments Capital
reserves
Minus:
Treasury
stock
Other
comprehensive
income
Special
reserves
Surplus
reserves
General
risk
preparation
Undistributed
profits
Other Subtotal
Preferred
stock
Perpetual
bonds
Other
1. Balance at the end of
last year
685464000 565955441 2965377 342732000 8008982547 9606099365 284388012 9890487377
Plus: Accounting
policies changing
-7540537 -7540537 -7540537
Previous error
correction
Business combination
under common control
Other
2. Balance at the
beginning of this year
685464000 565955441 2965377 342732000 8001442010 9598558828 284388012 9882946840
3. Increased or
decreased amount in
this period (reducing
amount is listed with
"-")
-905019 -7200960 718457349 710351370 -14460280 695891090
3.1 Total
comprehensive income
-7200960 1129735749 1122534789 -1368953 1121165836
3.2 Owners' invested
and reduced capital
-905019 -905019 -10714533 -11619552
3.2.1 Owner’ invested
common stock
-905019 -905019 -10714533 -11619552
3.2.2 Other equity
instrument holders’
invested capital
3.2.3 Amount of shares
paid and reckoned in
owners' equity
3.2.4 Other
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
3.3 Profit distribution -411278400 -411278400 -2376794 -413655194
3.3.1 Accrued surplus
reserves
3.3.2 Accrued general
risk preparation
3.3.3 Distribution to
owners (or
shareholders)
-411278400 -411278400 -2376794 -413655194
3.3.4 Other
3.4 Internal transfer of
owners' equity
3.4.1 Capital reserves
transferred and
increased capital (or
capital stock)
3.4.2 Surplus reserves
transferred and
increased capital (or
capital stock)
3.4.3 Surplus reserves
covering deficit
3.4.4 Retained earnings
carried over from the
benefit plan amount
3.4.5 Retained earnings
carried over from other
comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Withdrawal in this
period
3.5.2 Usage in this
period
3.6 Other
4. Balance at the end of
this period
685464000 565050422 -4235583 342732000 8719899359 10308910198 269927732 10578837930
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
Item
This period
Capital
stock
Other equity instruments
Capital
reserves
Minus:
Treasury
stock
Other
comprehensive
income
Special
reserves
Surplus
reserves
Undistributed
profits
Other
Total owners’
equity
Preferred
stock
Perpetual
bonds
Other
1. Balance at the end of last year 685464000 557222454 342732000 8619977577 10205396031
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685464000 557222454 342732000 8619977577 10205396031
3. Increased or decreased amount in this
period (reducing amount is listed with
"-")
-408877694 -408877694
3.1 Total comprehensive income 70947106 70947106
3.2 Owners' invested and reduced capital
3.2.1 Owners’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and
reckoned in owners' equity
3.2.4 Other
3.3 Profit distribution -479824800 -479824800
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
shareholders)
-479824800 -479824800
3.3.3 Other
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over
from the benefit plan amount
3.4.5 Retained earnings carried over
from other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685464000 557222454 342732000 8211099883 9796518337
Unit: Yuan
Item
Last period
Capital
stock
Other equity instruments
Capital
reserves
Minus:
Treasury
stock
Other
comprehensive
income
Special
reserves
Surplus
reserves
Undistributed
profits
Other
Total owners’
equity
Preferred
stock
Perpetual
bonds
Other
1. Balance at the end of last year 685464000 557222454 342732000 8437957128 10023375582
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685464000 557222454 342732000 8437957128 10023375582
3. Increased or decreased amount in this
period (reducing amount is listed with
"-")
182020449 182020449
3.1 Total comprehensive income 593298849 593298849
3.2 Owners' invested and reduced capital
3.2.1 Owners’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and
reckoned in owners' equity
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
3.2.4 Other
3.3 Profit distribution -411278400 -411278400
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
shareholders)
-411278400 -411278400
3.3.3 Other
3.4 Internal transfer of owners' equity
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over
from the benefit plan amount
3.4.5 Retained earnings carried over
from other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685464000 557222454 342732000 8619977577 10205396031
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
3. Company profile
Yantai Changyu Pioneer Wine Co. Ltd. (the “Company” or the “Joint-stock Company”) was
incorporated as a joint-stock limited company in accordance with the Company Law of the People’s
Republic of China (the “PRC”) in the merger and reorganization carried out by Yantai Changyu Group
Co. Ltd. (“Changyu Group Company”) with its assets and liabilities in relation to wine business. The
Company and its subsidiary companies (hereinafter collectively referred to as the “Group”) are
engaged in the production and sale of wine brandy and champagne planting and purchase of grapes
development of tourism resources etc. The registered address of the Company is Yantai City
Shandong Province and the office address of the headquarters is 56 Dama Road Zhifu District Yantai
City Shandong Province.
As at June 30 2020 the Company issued 685464000 shares accumulatively. Refer to Note 7.29 for
details.The parent company of the Group is Changyu Group Company incorporated in China which was
ultimately and actually controlled by four parties including Yantai Guofeng Investment Holding Co.Ltd. ILLVA Saronno Holding Spa International Finance Corporation and Yantai Yuhua Investment &
Development Co. Ltd.
The financial statement and the consolidated financial statement of the Company were approved by
the Board of Directors on August 26 2020.The details of scope of the consolidated financial statement in this period can be seen in Note 9
“Equity in other entities”. The details of scope changes of the consolidated financial statement in this
period can be seen in Note 8 “Changes of the consolidated scope”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Group implements the Accounting Standards for Business Enterprises (including the new and
revised editions published in 2014) (“ASBE”) published by the Ministry of Finance and relevant
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
regulations thereof.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30 2020 and no
issues or situations causing major doubts to this ability are found. Therefore this financial statement is
prepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of ASBE issued by the Ministry of Finance and gives
a true and integrated view of the consolidated financial status and the financial status as at June 30
2020 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 2020.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 (2014
Revision) by the China Securities Regulatory Commission (hereinafter referred to as the “CSRC”).
5.2 Accounting period
The accounting year is from January 1 to December 31 in Gregorian calendar.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for processing to
the cash or cash equivalent is realized. The operating cycle of the Company is 12 months.
5.4 Recording currency
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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.
5.5 Accounting treatment method for business combination under common control and
non-common control
5.5.1 Business combination and goodwill under common control
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 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 stock premium in
capital surplus shall be adjusted. If the stock premium in capital surplus is not sufficient to offset the
retained earnings shall be adjusted. 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.
5.5.2 Business combination under non-common control
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 deducts the fair value of the acquiree’s identifiable net assets acquired in the combination on
the acquisition date. 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. 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
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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 remeasures its previously-held equity interest in the acquiree to its acquisition-date fair value
and recognises any resulting difference between the fair value and the carrying amount as investment
income or other comprehensive income for the current period. In addition any amount recognised in
other comprehensive income that may be reclassified to profit or loss in prior reporting periods
relating to the previously-held equity interest and any other changes in the owners’ equity under
equity accounting are transferred to investment income in the period in which the acquisition occurs.If equity interests of the acquiree held before acquisition-date were equity instrument investments
measured at fair value through other comprehensive income other comprehensive income recognised
shall be moved to retained earnings on acquisition-date.
5.6 Compiling methods of consolidated financial statement
5.6.1 General principles
The scope of consolidated financial statements is based on control and the consolidated financial
statements comprise the Company and its subsidiaries. Control exists when the investor has all of
following: power over the investee; exposure or rights to variable returns from its involvement with
the investee and has the ability to affect those returns through its power over the investee. When
assessing whether the Group has power only substantive rights (held by the Group and other parties)
are considered. The financial position financial performance and cash flows of subsidiaries are
included in the consolidated financial statements from the date that control commences until the date
that control ceases.Non-controlling interests are presented separately in the consolidated balance sheet within
shareholders’ equity. Net profit or loss attributable to non-controlling shareholders is presented
separately in the consolidated income statement below the net profit line item. Total comprehensive
income attributable to non-controlling shareholders is presented separately in the consolidated income
statement below the total comprehensive income line item.When the amount of loss for the current period attributable to the non-controlling shareholders of a
subsidiary exceeds the non-controlling shareholders’ share of the opening owners’ equity of the
subsidiary the excess is still allocated against the non-controlling interests.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
When the accounting period or accounting policies of a subsidiary are different from those of the
Company the Company makes necessary adjustments to the financial statements of the subsidiary
based on the Company’s own accounting period or accounting policies. Intra-group balances and
transactions and any unrealised profit or loss arising from intra-group transactions are eliminated
when preparing the consolidated financial statements. Unrealised losses resulting from intra-group
transactions are eliminated in the same way as unrealised gains unless they represent impairment
losses that are recognised in the financial statements.
5.6.2 Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period through a business combination
involving entities under common control the financial statements of the subsidiary are included in the
consolidated financial statements based on the carrying amounts of the assets and liabilities of the
subsidiary in the financial statements of the ultimate controlling party as if the combination had
occurred at the date that the ultimate controlling party first obtained control. The opening balances and
the comparative figures of the consolidated financial statements are also restated.Where a subsidiary was acquired during the reporting period through a business combination
involving entities not under common control the identifiable assets and liabilities of the acquired
subsidiaries are included in the scope of consolidation from the date that control commences based on
the fair value of those identifiable assets and liabilities at the acquisition date.
5.6.3 Disposal of subsidiaries
When the Group loses control over a subsidiary any resulting disposal gains or losses are recognised
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 recognised 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;
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
- 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 which eventually results in the
loss of control in the subsidiary these multiple transactions are accounted for as a single transaction.In the consolidated financial statements the difference between the consideration received and the
corresponding proportion of the subsidiary’s net assets (calculated continuously from the acquisition
date) in each transaction prior to the loss of control shall be recognised in other comprehensive income
and transferred to profit or loss when the parent eventually loses control of the subsidiary.
5.6.4 Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without a change in control the
difference between the proportion interests of the subsidiary’s net assets being acquired or disposed
and the amount of the consideration paid or received is adjusted to the capital reserve (share premium)
in the consolidated balance sheet with any excess adjusted to retained earnings.
5.7 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand demand deposit and short-term highly liquid
investments which are readily convertible into known amount of cash with an insignificant risk of
changes in value.
5.8 Foreign currency transaction and foreign currency statement translation
When the Group receives capital in foreign currencies from investors the capital is translated to
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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 recognised in 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
retained earnings and the translation differences in other comprehensive income are translated to
Renminbi at the spot exchange rates at the transaction dates. Income and expenses in the income
statement are translated to Renminbi at the spot exchange rates at the transaction dates. The resulting
translation differences are recognised 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.
5.9 Financial instruments
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.
5.9.1 Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognised in the balance sheet when the Group becomes a
party to the contractual provisions of a financial instrument.
A financial assets (unless it is a trade receivable without a significant financing component) and
financial liabilities 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 directly attributable
transaction costs are included in their initial costs. Accounts receivable containing no significant
financing component are measured initially at transaction prices determined by the accounting policies
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
set out in Note 5.22.
5.9.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which a financial
asset is managed and its contractual cash flow characteristics. On initial recognition a financial asset
is classified as measured at amortised 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 amortised 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 instrument meets the definition of equity
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
from the perspective of the issuer.
All financial assets not classified as measured at amortised 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 amortised 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 recognised in profit or loss unless the financial assets are part of a
hedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method. A gain
or loss on a financial asset that is measured at amortised cost and is not part of a hedging relationship
shall be recognised in profit or loss when the financial asset is derecognised through the amortisation
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
process or in order to recognise 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 recognised in profit or loss.Other net gains and losses are recognised in other comprehensive income. On derecognition gains and
losses accumulated in other comprehensive income are reclassified to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in profit or
loss. Other net gains and losses are recognised in other comprehensive income. On derecognition
gains and losses accumulated in other comprehensive income are reclassified to retained earnings.
5.9.3 Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost by the Group.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (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 recognised in profit or loss unless the financial liabilities are part
of a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective interest
method.
5.9.4 Offsetting
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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 recognised amounts；
- The Group intends either to settle on a net basis or to realise the financial asset and settle the
financial liability simultaneously.
5.9.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of 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.Where a transfer of a financial asset in its entirety meets the criteria for derecognition the difference
between the two amounts below is recognised in 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 recognised directly in other
comprehensive income for the part derecognised.The Group derecognises a financial liability (or part of it) only when its contractual obligation (or part
of it) is extinguished.
5.9.6 Impairment
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- financial investments at fair value through other comprehensive income
Financial assets measured at fair value including debt investments or equity securities 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.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12
months after the balance sheet date (or a shorter period if the expected life of the instrument is less
than 12 months).
For accounts receivable 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.
For assets other than accounts receivable that meet one of the following conditions loss allowance are
measured at an amount equal to 12-month ECLs. For all other financial instruments the Group
recognises a loss allowance equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
- If the credit risk on a financial instrument has not increased significantly since initial recognition.
Financial instruments that have low credit risk
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 compares the risk of default occurring on the financial instrument assessed at
the balance sheet date with that assessed 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.
Depending on the nature of the financial instruments the assessment of a significant increase in credit
risk is performed on either an individual basis or a collective basis. When the assessment is performed
on a collective basis the financial instruments are grouped based on shared credit risk characteristics
such as past due status and credit risk ratings.The Group assumes that the credit risk on a financial asset has increased significantly if it is more than
30 days past due.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Credit-impaired financial assets
At each balance sheet date the Group assesses whether financial assets carried at amortised 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 reorganisation; or
- the disappearance of an active market for that financial asset because of financial difficulties.Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial instrument’s credit
risk since initial recognition. Any change in the ECL amount is recognised as an impairment gain or
loss in profit or loss. The Group recognises 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 recognised 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 recognised as a reversal of
impairment in profit or loss in the period in which the recovery occurs.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
5.9.7 Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is
recognised in shareholders’ equity. 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.
5.10 Inventories
5.10.1 Classification and cost
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 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 labour costs and
an appropriate allocation of production overheads.
Agricultural products harvested are reported in accordance with the CAS No.1 - Inventories.
5.10.2 Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are amortised when they are
used. The amortisation charge is included in the cost of the related assets or recognised in profit or loss
for the current period.
5.10.3 Basis for determining the net realisable value and method for provision for
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
obsolete inventories
At the balance sheet date inventories are carried at the lower of cost and net realisable value.
Net realisable 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
realisable value of materials held for use in the production is measured based on the net realisable
value of the finished goods in which they will be incorporated. The net realisable 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 realisable value of each item of inventories is recognised as a
provision for impairment and is recognised in profit or loss.
5.10.4 Inventory count system
The Group maintains a perpetual inventory system.
5.11 Long-term equity investments
5.11.1 Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a 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 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 excess adjusted to
retained earnings. 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
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
previously-held investment and the consideration paid for the shares newly acquired is adjusted to
capital premium in the capital reserve with any excess adjusted to retained earnings.
- 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
recognised 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.
5.11.2 Subsequent measurement of long-term equity 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 recognises 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 accumulated impairment
losses.
For the impairment of the investments in subsidiaries refer to Note 5.20.
In the Group’s consolidated financial statements subsidiaries are accounted for in accordance with the
policies described in Note 5.6.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
(b) Investments in joint ventures
A joint venture is an arrangement whereby the Group and other parties have joint control and rights to
the net assets of the arrangement.
A long-term equity investment in a joint venture 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
recognised 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 recognised
at the investor’s share of the fair value of the investee’s identifiable net assets and the difference is
recognised in profit or loss.
- After the acquisition of the investment the Group recognises 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 recognised 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 recognises 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. Unrealised 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. Unrealised losses resulting from transactions between the Group and its associates or joint
ventures are eliminated in the same way as unrealised gains but only to the extent that there is no
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
impairment.- The Group discontinues recognising its share of further losses of the investee after the carrying
amount of the long-term equity investment and any long-term 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 subsequently reports net profits the
Group resumes recognising its share of those profits only after its share of the profits equals the share
of losses not recognised.
For the impairment of the investments in joint ventures and associates refer to Note 5.20.
5.11.3 Criteria for determining the existence of joint control over an investee
Joint control is the contractually agreed sharing of control of an arrangement which 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.
5.12 Investment properties
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 amortisation and impairment losses and adopts a depreciation or
amortisation policy for the investment property which is consistent with that for buildings or land use
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
rights unless the investment property is classified as held for sale. For the impairment of the
investment properties refer to Note 5.20.
Category
Estimated useful life
(years)
Residual value rate
(%)
Depreciation rate (%)
Plant and buildings 20-40 years 0 - 5% 2.4%-5.0%
5.13 Fixed assets
5.13.1 Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods supply of
services for rental or for administrative purposes with useful lives over one accounting year.The cost of a purchased fixed asset comprises the purchase price related taxes and any directly
attributable expenditure for bringing the asset to working condition for its intended use. The cost of
self-constructed assets is measured in accordance with the policy set out in Note 5.14.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
recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets are recognised as
assets when it is probable that the economic benefits associated with the costs will flow to the Group
and the carrying amount of the replaced part is derecognised. The costs of the day-to-day maintenance
of fixed assets are recognised in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment
losses.
5.13.2 Depreciation of fixed assets
The cost of a fixed asset less its estimated residual value and accumulated impairment losses is
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
depreciated using the straight-line method over its estimated useful life unless the fixed asset is
classified as held for sale.The estimated useful lives residual value rates and depreciation rates of each class of fixed assets are
as follows:
Class
Estimated useful life
(years)
Residual value rate
(%)
Depreciation rate (%)
Plant and buildings 20-40 years 0 - 5% 2.4%-5.0%
Machinery equipment 5-30 years 0 - 5% 3.2%-20.0%
Motor vehicles 4-12 years 0 - 5% 7.9%-25.0%
Useful lives estimated residual values and depreciation methods are reviewed at least at each
year-end.
5.13.3 For the impairment of the fixed assets refer to Note 5.20.
5.13.4 Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.Gains or losses arising from the retirement or disposal of an item of fixed asset are determined as the
difference between the net disposal proceeds and the carrying amount of the item and are recognised
in profit or loss on the date of retirement or disposal.
5.14 Construction in progress
The cost of self-constructed assets includes the cost of materials direct labour capitalised borrowing
costs and any other costs directly attributable to bringing the asset to working condition for its
intended use.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
A self-constructed 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.
Construction in progress is stated in the balance sheet at cost less accumulated impairment losses (see
Note 5.20).
5.15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction or production of a
qualifying asset are capitalised as part of the cost of the asset. Other borrowing costs are recognised as
financial expenses when incurred.
During the capitalisation period the amount of interest (including amortisation of any discount or
premium on borrowing) to be capitalised 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 capitalised 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
capitalisation is determined by applying a capitalisation rate to the weighted average of the excess
amounts of cumulative expenditure on the asset over the above amounts of specific borrowings. The
capitalisation 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
recognised amount of the borrowings.
During the capitalisation period exchange differences related to the principal and interest on a
specific-purpose borrowing denominated in foreign currency are capitalised as part of the cost of the
qualifying asset. The exchange differences related to the principal and interest on foreign currency
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
borrowings other than a specific-purpose borrowing are recognised as a financial expense when
incurred.The capitalisation period is the period from the date of commencement of capitalisation of borrowing
costs to the date of cessation of capitalisation excluding any period over which capitalisation is
suspended. Capitalisation 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. Capitalisation of borrowing costs should cease when the
qualifying asset being constructed or produced has reached its expected usable or saleable condition.
Capitalisation of borrowing costs is suspended when the acquisition construction or production
activities are interrupted abnormally for a period of more than three months.
5.16 Biological assets
The biological assets of the Group are productive biological assets.
Bearer biological assets are those that are held for the purposes of producing agricultural produce
rendering of services or rental. Bearer biological assets in the Group are vines. Bearer biological assets
are initially measured at cost. The cost of self-grown or self-bred bearer biological assets represents
the necessary directly attributable expenditure incurred before satisfying the expected production and
operating purpose including capitalised borrowing costs.
Bearer biological assets after reaching the expected production and operating purpose are depreciated
using the straight-line method over its estimated useful life. The estimated useful lives estimated net
residual value rates and depreciation rates of bearer biological assets are as follows:
Category Useful life (years)
Estimated net residual rate
(%)
Annual depreciation rate (%)
Vines 20 years 0% 5.0%
The Group evaluates the useful life and expected net salvage value by considering the normal
producing life of the bearer biological assets.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Useful lives estimated residual values and depreciation methods of bearer biological assets are
reviewed at least at each year-end. Any changes should be treated as changes in accounting estimates.
For a bearer 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 recognised
in profit or loss for the period in which it arises.
5.17 Intangible assets
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 5.20). For an intangible asset with finite
useful life its cost estimated less residual value and accumulated impairment losses is amortised on
the straight-line method over its estimated useful life unless the intangible asset is classified as held
for sale.The respective amortisation periods for intangible assets are as follows:
Item Amortisation period (years)
Land use rights 40-50 years
Software licenses 5-10 years
Trademark 10 years
An intangible asset is regarded as having an indefinite useful life and is not amortised 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 Vi?a Indómita S.A. Vi?a Dos Andes S.A. and Bodegas Santa
Alicia SpA. (collectively referred to as the "Chile Indomita Wine Group") and the acquisition of
Kilikanoon Estate Pty Ltd.( hereinafter referred to as the "Australia Kilikanoon Estate") therefore
there was no amortisation. 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
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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.
5.18 Goodwill
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 amortised and is stated in the balance sheet at cost less accumulated impairment losses
(see Note 5.20). 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.
5.19 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefit period. The
respective amortisation periods for such expenses are as follows:
Item Amortisation period
Land requisition fee 50 years
Land lease fee 50 years
Greening fee 5-20 years
Renovation fee 3-5 years
Others 3 years
5.20 Impairment of assets other than inventories and financial assets
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
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
- construction in progress
- intangible assets
- Bearer biological assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses etc.If any indication exists the recoverable amount of the asset is estimated. In addition 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 recognised 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 recognised 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 recognised it is not reversed in a subsequent period.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
5.21 Fair value measurement
Unless otherwise specified the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability 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.
5.22 Revenue
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. 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 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. It is expected that the money returned to the client will be regarded as a
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
return liability and not included in the transaction price. 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.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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.
5.23 Employee benefits
5.23.1 Short-term employee benefits
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 accured at
the applicable benchmarks and rates are recognised 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.
5.23.2 Post-employment benefits – defined contribution plans
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 organisations. 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 recognised 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.
5.23.3 Termination benefits
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 recognised 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
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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.
5.24 Government grants
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 recognised 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
recognised as deferred income and amortised 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 recognised as deferred income and
included in other income or non-operating income in the periods in which the expenses or losses are
recognised or included in other income or non-operating income directly.
5.25 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they relate to a
business combination or items recognised 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.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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 realise 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 recognised to the extent that it is probable that
future taxable profits will be available against which deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initial recognition of
assets or liabilities in a transaction that is not a business combination and that affects neither
accounting profit nor taxable profit (or deductible loss). Deferred tax is not recognised 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 utilised. 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 realise 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.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
5.26 Operating leases and finance leases
A lease is classified as either a finance lease or an operating lease. A finance lease is a lease that
transfers substantially all the risks and rewards incidental to ownership of a leased asset to the lessee
irrespective of whether the legal title to the asset is eventually transferred. An operating lease is a lease
other than a finance lease.
5.26.1 Operating lease assets
Rental payments under operating leases are recognised as part of the cost of another related asset or as
expenses on a straight-line basis over the lease term. Contingent rental payments are expensed as
incurred.
5.26.2 Assets leased out under operating leases
Fixed assets leased out under operating leases except for investment properties (see Note 5.12) are
depreciated in accordance with the Group’s depreciation policies described in Note 5.13.2. Impairment
losses are recognised in accordance with the accounting policy described in Note 5.20. Income derived
from operating leases is recognised in profit or loss using the straight-line method over the lease term.If initial direct costs incurred in respect of the assets leased out are material the costs are initially
capitalised and subsequently amortised in profit or loss over the lease term on the same basis as the
lease income. Otherwise the costs are charged to profit or loss immediately.
5.27 Assets held for sale
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.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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 recognised as an impairment loss in profit or loss.
5.28 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan which will be approved
after the balance sheet date are not recognised as a liability at the balance sheet date but are disclosed
in the notes separately.
5.29 Related parties
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 Company determines related parties based on the
disclosure requirements of Administrative Procedures on the Information Disclosures of Listed
Companies issued by the CSRC.
5.30 Segment reporting
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
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 organisation
structure management requirements and internal reporting system the Group's operation is divided
into four parts: China Spain France Chile and Australia. The management periodically evaluates
segment results in order to allocate resources and evaluate performances. In 2020 over 89% of
revenue more than 98% of profit and over 92% of non-current assets derived from China / are located
in China. Therefore the Group does not need to disclose additional segment report information.
5.31 Significant accounting estimates and judgements
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 recognised in the period in which the estimate is revised and in any future periods
affected.
5.31.1 Significant accounting estimates
Except for accounting estimates relating to depreciation and amortisation of assets such as investment
properties fixed assets bearer biological assets and intangible assets (see Notes 5.12 13 16 and 17)
and provision for impairment of various types of assets (see Notes 7.2 5 6 10 11 12 13 14 and
Notes 17.1 and 3). Other significant accounting estimates are as follows:
(i) Note 7.16 – Recognition of deferred tax asset;
(ii) Note 11. – Fair value measurements of financial instruments.
5.32 Changes in significant accounting policies and accounting estimates
5.32.1 Changes in significant accounting policies
The Group implemented the Accounting Standards for Business Enterprises No. 14 - Revenues revised
by the Ministry of Finance in 2017 on January 1 2020.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Accounting Standards for Business Enterprises No. 14 - Revenues (Revision) ("New Revenue
Standards")
The New Revenue Standards replace the original revenue ones. Under the original revenue standards
the Group used the transfer of risk premium as the criterion for determining the timing of revenue
recognition. The Group's revenue from sales of goods is recognized when the following conditions are
met at the same time: the main risks and rewards of property in the goods have been transferred to the
buyer the amount of revenue and related costs can be reliably measured and related economic
benefits are likely to flow into the Group. The Group neither retains the continuing management rights
that are usually associated with ownership nor does it exercise effective control over the sold goods.Under the New Revenue Standards the Group used the transfer of control right as the criterion for
determining the timing of revenue recognition:
- 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 the Group meets a certain
condition 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. 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 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 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. It is expected that the money returned to the client will be regarded as a return liability and
not included in the transaction price. 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.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
- The Group adjusted relevant accounting policies in accordance with the specific provisions of the
New Revenue Standards on specific matters or transactions such as contract costs sales with sales
return clauses and sales divisions with quality assurance clauses.- In accordance with the New Revenue Standards the Group based on the relationship between
performance obligations and client payments presents contract assets or liabilities in the balance sheet.
At the same time the Group provides more disclosures on revenue-related information disclosure
requirements in accordance with the New Revenue Standards such as relevant accounting policies
judgments with significant influence (the measurement of variable consideration the method of
allocating the transaction price to each individual performance obligation the assumption used in
estimating the stand-alone selling price of each individual performance obligation etc.) information
related to client contracts (revenue recognition for the current period contract balance performance
obligations etc.) and information on assets related to contract costs.The Group based on the cumulative impact of the first implementation of the New Revenue Standards
adjusted the retained earnings at the beginning of 2020 and the amount of other related items in the
financial statements except for comparative financial statement data.
5.32.2 Changes in significant accounting estimates
Nil
5.32.3 Particulars of first implementation of new income standards to adjust the first
implementation of related items in the financial statements at the beginning of the year
Consolidated Balance Sheet
Unit: Yuan
Item December 31 2019 January 1 2020 Adjustments
Current assets:
Monetary fund 1565783980 1565783980
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 266218153 266218153
Receivables financing 316470229 316470229
Advance payment 67707537 67707537
Premium receivable
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item December 31 2019 January 1 2020 Adjustments
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 24246812 24246812
Including: Interest receivable 148927 148927
Dividends receivable
Redemptory monetary capital for sale
Inventories 2872410407 2872410407
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 267424938 267424938
Total current assets 5380262056 5380262056
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 43981130 43981130
Other investments in equity instruments
Other non-current financial assets
Investment real estate 29714586 29714586
Fixed assets 5894068898 5894068898
Construction in progress 567478833 567478833
Productive biological assets 202425286 202425286
Oil-and-gas assets
Right-of-use assets
Intangible assets 651946355 651946355
Development expenditure
Goodwill 141859193 141859193
Long-term prepaid expenses 277595408 277595408
Deferred income tax assets 264926503 264926503
Other non-current assets 193674320 193674320
Total non-current assets 8267670512 8267670512
Total assets 13647932568 13647932568
Current liabilities:
Short-term loans 754313744 754313744
Borrowings from the Central Bank
Loans from other banks and other financial institutions
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 570252612 570252612
Advances from customers 120609499 -120609499
Contract liabilities 106734070 106734070
Financial assets sold for repurchase
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item December 31 2019 January 1 2020 Adjustments
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 234459116 234459116
Taxes and dues payable 375169971 375169971
Other payables 450532485 450532485
Including: Interest payable 758047 758047
Dividends payable 1366559 1366559
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 150826221 150826221
Other current liabilities 13875429 13875429
Total current liabilities 2656163648 2656163648
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 128892501 128892501
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable 191000000 191000000
Long-term employee remunerations payable
Estimated liabilities
Deferred income 70701288 70701288
Deferred income tax liabilities 14691424 14691424
Other non-current liabilities 7645777 7645777
Total non-current liabilities 412930990 412930990
Total liabilities 3069094638 3069094638
Owner’s equity:
Capital stock 685464000 685464000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 565050422 565050422
Minus: Treasury stock
Other comprehensive income -4235583 -4235583
Special reserves
Surplus reserves 342732000 342732000
General risk preparation
Undistributed profit 8719899359 8719899359
Total owner’s equities attributable to the parent company 10308910198 10308910198
Minority equity 269927732 269927732
Total owner’s equities 10578837930 10578837930
Total liabilities and owner’s equities 13647932568 13647932568
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Balance Sheet of the Parent Company
Unit: Yuan
Item December 31 2019 January 1 2020 Adjustments
Current assets:
Monetary fund 710505269 710505269
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 1988326 1988326
Receivables financing 41679635 41679635
Advance payment 776539 776539
Other receivables 586424958 586424958
Including: Interest receivable 90355 90355
Dividends receivable 200000000 200000000
Inventories 434007808 434007808
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 39130466 39130466
Total current assets 1814513001 1814513001
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7432422621 7432422621
Other investments in equity instruments
Other non-current financial assets
Investment real estate 29714586 29714586
Fixed assets 261137072 261137072
Construction in progress
Productive biological assets 121414096 121414096
Oil and gas assets
Right-of-use assets
Intangible assets 64864913 64864913
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred income tax assets 16255870 16255870
Other non-current assets 1427700000 1427700000
Total non-current assets 9353509158 9353509158
Total assets 11168022159 11168022159
Current liabilities:
Short-term loans 150000000 150000000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Item December 31 2019 January 1 2020 Adjustments
Accounts payable 63655240 63655240
Advances from customers
Contract liabilities
Employee remunerations 70445847 70445847
Taxes and dues payable 6052456 6052456
Other payables 660149563 660149563
Including: Interest payable 181250 181250
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 950303106 950303106
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term employee remuneration payable
Estimated liabilities
Deferred income 9176315 9176315
Deferred income tax liabilities
Other non-current liabilities 3146707 3146707
Total non-current liabilities 12323022 12323022
Total liabilities 962626128 962626128
Owner’s equity:
Capital stock 685464000 685464000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 557222454 557222454
Minus: Treasury stock
Other comprehensive income
Special reserves
Surplus reserves 342732000 342732000
Undistributed profit 8619977577 8619977577
Total owner’s equities 10205396031 10205396031
Total liabilities and owner’s equities 11168022159 11168022159
6. Taxes
6.1 The main taxes and tax rates are as follows:
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
6.2 Tax incentives
Ningxia Changyu Grape Growing Co. Ltd.("Ningxia Growing") a subsidiary of the Group whose
principal activity is grape growing is incorporated in 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 an exemption of corporate income tax.Yantai Changyu Grape Growing Co. Ltd. ("Grape Growing") a branch of the Company whose
principal activity is grape growing is incorporated in Zhifu District Yantai City Shandong Province.
According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate Income Tax
Measures for Implementation Grape Growing enjoys an exemption of corporate income tax.
Beijing Changyu AFIP Agriculture Development Co. Ltd ("Agriculture Development") a subsidiary
of the Group whose principal activity is 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 an exemption of corporate income tax.
Xinjiang Tianzhu Co. Ltd ("Xinjiang Tianzhu") a subsidiary of the Company is an enterprise of wine
production and sales incorporated in Shihezi city Xinjiang Uygur Autonomous Region. In accordance
with the Notice on Tax Policy Issues concerning Further Implementation of the Western China
Development Strategy (Cai Shui [2011] No.58) Xinjiang Tianzhu 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 2015 to 2020.Tax category Taxation basis Tax rates
Value added tax
Levied on the balance between the
output tax calculated based on taxable
income and the input tax allowed to be
deducted in current period
13% 9% 6% (China) 20%
(France) 21% (Spain) 19% (Chile)
10% (Australia)
Consumption tax Levied on taxable income
10% of the price 20% of the price
and 1000 Yuan each ton (China)
City development tax Levied on circulation tax actually paid 7% (China)
Corporate income tax Levied on taxable income
25% (China) 28% (France) 28%
(Spain) 27% (Chile) 30%
(Australia)
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Xinjiang Babao Baron Chateau Co. Ltd. ("Shihezi Chateau") a subsidiary of the Company is an
enterprise of wine production and sales incorporated in Shihezi city Xinjiang Uygur Autonomous
Region. In accordance with the Notice on Tax Policy Issues concerning Further Implementation of the
Western China Development Strategy (Cai Shui [2011] No.58) 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 2015 to 2020.
7. Notes to items in the consolidated financial statement
7.1 Monetary capital
Unit: Yuan
Item Ending balance Beginning balance
Cash on hand 38910 59975
Bank deposit 1384635885 1474489177
Other monetary capital 91532260 91234828
Total 1476207055 1565783980
Including: Total overseas deposits 49084619 42752630
As at June 30 2020 the restricted bank deposit details are listed as follows:
Unit: Yuan
Item Ending balance Beginning balance
Housing fund of the unit 2684406 2647877
Total 2684406 2647877
As at June 30 2020 the details of other monetary funds are listed as follows:
Unit: Yuan
Item Ending balance Beginning balance
Pledge of fixed deposits by Yantai
Changyu Wine Research
Development and Manufacture Co.
Ltd. (“R&D Company”)
46100000 46100000
Guaranteed deposits paid for the letter
of credit
44540850 44540850
Account balance of Alipay 685691 583978
Guaranty money for the unit card 195719 -
Guaranty money for ICBC platform 10000 10000
Total 91532260 91234828
As at June 30 2020 the bank deposits of the Group including short-term fixed deposits ranging from
3 months to 12 months amounted to RMB 81200000 Yuan (December 31 2019: RMB 106128600)
with the interest rates ranging from 1.40% to 2.75%.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
7.2 Bills receivable
7.2.1 Classification of bills receivable
Unit: Yuan
Type
Ending balance Beginning balance
Book balance
Provision for bad
debts
Book value
Book balance
Provision for bad
debts
Book value
Amount Proportion Amount Accrued
proportion
Amount Proportion Amount Accrued
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
184942173 100% 17203540 9.30% 167738633 283522528 100% 17304375 6.10% 266218153
Total 184942173 100% 17203540 9.30% 167738633 283522528 100% 17304375 6.10% 266218153
Provision for bad debts accrued on a combined basis:
Unit: Yuan
Name
Ending balance
Book balance Provision for bad debts Accrued proportion
Amounts due from related
parties
2005182 67379 3.40%
Amounts due from other
customers
182936991 17136161 9.40%
Total 184942173 17203540 9.30%
Disclosed by age:
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 178061481
1-2 years 5228218
2-3 years 1652474
Over 3 years
Total 184942173
As at June 30 2020 the accounts receivable with ownership restrictions were RMB 31557404 Yuan
(December 31 2019: 54663422 Yuan). Please refer to Note 7.18 for details.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
7.2.2 Provision for bad debts accrued withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
Unit: Yuan
Type
Beginning
balance of the
year
Changes in this period
Ending
balance Accrued
Withdrawn or
transferred back
Cancelled
Accounts receivable for
which provision for bad
debts is accrued
17304375 100835 17203540
Total 17304375 100835 17203540
7.2.3 Accounts receivable actually cancelled after verification in this period
Nil
7.2.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance
Unit: Yuan
Unit
Relationship with
the Company
Amount Period
Percentage in total
accounts
receivable
Ending balance of
provision for bad
and doubtful debts
Lianhua Supermarket
Holdings Co. Ltd.Third party 12068877 Within 1 year 6.50% 1821381
Nonggongshang
Supermarket (Group) Co.Ltd.Third party 10822716 Within 1 year 5.90% 2588499
CIA. ZAFFARI
COMERCIO E
Third party 4962855 Within 1 year 2.70% 159007
TRI-VIN IMPORTS INC. Third party 4729522 Within 1 year 2.60% 47175
Kingsland Wines and Spirits Third party 4529090 Within 1 year 2.40% 145109
Total -- 37113060 -- 20.1% 4761171
7.2.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.2.6 Accounts receivable transferred and included in assets and liabilities
Nil
7.3 Receivables financing
Unit: Yuan
Item Ending balance Beginning balance
Bills receivable 222918741 316470229
Total 222918741 316470229
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
7.3.1 The pledged bills receivable of the Group at the end of the year
Nil
7.3.2 Outstanding endorsed bills that have not matured at the end of the year
Item Amount derecognised at year end
Bank acceptance bills 90385572
Total 90385572
As at June 30 2020 bills endorsed by the Group to other parties which are not yet due at the end of
the period is RMB90385572 Yuan(December 31 2019: RMB265759455 Yuan). The notes are used
for payment 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 derecognise 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.
7.4 Advance payment
7.4.1 Advance payment listed by age
Unit: Yuan
Age
Ending balance Beginning sum
Amount Proportion Amount Proportion
Within 1 year 10200527 100% 67441713 99.6%
1-2 years 265824 0.4%
2-3 years
More than 3 years
Total 10200527 100%-- 67707537 --
7.4.2 Advance payment collected by the prepaid parties of top 5 units ranked by the
ending balance
Unit: Yuan
Category of client
Relationship with
the Group
Amount Age Reason for unsettlement
Percentage
in the total
advance
payment%
Chateau De Mirefleurs
Related party
6429542
Within 1
year
Prepayments 63.0%
Chateau De Liversan
Related party
1632941 Within 1
Prepayments 16.0%
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
year
State Grid Shandong Electronic Power
Yantai Company Third party
1229571
Within 1
year
Prepaid electricity fees 12.1%
Beijing Shanshui Decoration Company
Third party 97000
Within 1
year
Prepaid maintenance cost 1.0%
Sinopec Sales Co. Ltd. Shandong
Yantai Petroleum Branch Third party 90000
Within 1
year
Prepaid fuel cost 0.9%
Total -- 9479054 --
93.0%
7.5 Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Interest receivable 698347 148927
Dividends receivable
Other receivables 24896454 24097885
Total 25594801 24246812
7.5.1 Interest receivable
Unit: Yuan
Item Ending balance Beginning balance
Fixed deposit 698347 148927
Entrusted loan
Bond investment
Total 698347 148927
7.5.2 Other receivables
7.5.2.1 Other receivables classified by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Deposit and guaranty money receivable 8546270 9812027
Imprest receivable 832227 1741147
Consumption tax and added-value tax export rebate 7878064 8937164
Other 7639893 3607547
Total 24896454 24097885
7.5.2.2 Disclosed by age
Unit: Yuan
Age Ending balance
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Age Ending balance
Within 1 year (including 1 year) 16742154
1-2 years 383863
2-3 years 721352
More than 3 years 7049085
Total 24896454
7.5.2.3 Provision for bad debts accrued withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan; and that withdrawn or transferred
back in this period was RMB 0 Yuan.
7.5.2.4 Other receivables actually cancelled after verification in this period
Nil
7.5.2.5 Other receivables collected by the borrowers of top 5 units ranked by the ending
balance
Unit: Yuan
Unit Nature
Ending
balance
Age
Percentage in total
ending balance of other
accounts receivable
Ending balance of
provision for bad
debts
Sercicio de Impuestos Internos
Value-added
tax rebate
6668550 Within 1 years 26.8%
YEDA Finance Bureau
Guaranty
money
5262324 Over 3 years 21.1%
YEDA Construction Industry
Association
Construction
guaranty
money
1143500 Over 3 years 4.6%
Yantai God Horse Packing Co.Ltd.Lease
payment
receivable
1626880 Within 1 year 6.5%
Changyu Group
Lease
payment
payable
3775362 Within 1 year 15.2%
Total -- 18476616 -- 74.2%
7.5.2.6 Accounts receivable involving government subsidies
Nil
7.5.2.7 Other receivables that are terminated for recognition due to transfer of financial assets
Nil
7.5.2.8 Other receivables transferred and then included in assets and liabilities
Nil
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
7.6 Inventories
7.6.1 Inventory classification
Unit: Yuan
Item
Ending balance Beginning balance
Book balance
Depreciation
provision
Book value Book balance
Depreciation
provision
Book value
Raw materials 53065316 53065316 71681418 71681418
Goods in process 2282289166 2282289166 2102781536 2102781536
Commodity stocks 609349091 8570313 600778778 718127090 20179637 697947453
Total 2944703573 8570313 2936133260 2892590044 20179637 2872410407
7.6.2 Inventory depreciation provision
Unit: Yuan
Item
Beginning
balance
Increase in this period Decrease in this period
Ending balance
Accrual Other
Transfer back or
write-off
Other
Raw materials
Goods in process
Commodity stocks 20179637 11609324 8570313
Total 20179637 11609324 8570313
7.7 Other current assets
Unit: Yuan
Item Ending balance Beginning balance
Prepaid corporate income tax 26971533 16854091
Deductible input tax 234012096 248975183
Rent to be amortized 1934092 1595664
Total 262917721 267424938
7.8 Long-term equity investments
Unit: Yuan
Investee
Beginning
balance (book
value)
Movements during the period
Ending balance
(book value)
Ending
balance of
provision
for
impairment
Increase in
capital
Decrease
in capita
Losses from
investments
under
equity-method
Other
omprehensive
income
adjustment
Other equity
changing
Declare cash
dividend or
profit
Accrual
provision for
impairment
Others
1. Joint ventures
SAS L&M
Holdings(“L&MHoldings”)
43981130 -1170685 42810445
Subtotal 43981130 -1170685 42810445
On February 22 2019 Francs Champs Participations SAS (“Francs Champs”) a subsidiary of the
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Group signed the Cooperation Agreement with SC Garri du Gai to establish L&M Holdings a joint
venture. Francs Champs contributed 100% of the equity of its subsidiary Societe Civile Argricole Du
Chateau De Mirefleurs (“Mirefleurs”) with a fair value of RMB45102058 Yuan accounting for 55%
of the shares of L&M Holdings. As per the Agreement and the Articles of Association L&M Holdings
is jointly controlled by shareholders of both parties.
7.9 Investment real estate
7.9.1 Investment real estate by cost measurement method
Unit: Yuan
Item
Houses and
buildings
Land use right
Construction in
progress
Total
Ⅰ Original book value
1. Beginning balance 70954045 70954045
2. Increase in this period
2.1 Outsourcing
2.2 Transfer in from
inventories\fixed assets\
construction in progress
2.3 Business merger
increase
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 70954045 70954045
Ⅱ Accumulated depreciation
& accumulated amortization
1. Beginning balance 41239459 41239459
2. Increase in this period 1369899 1369899
2.1 Accrual or
amortization
1369899 1369899
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 42609358 42609358
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance
Ⅳ Book value
1. Ending book value 28344687 28344687
2. Beginning book value 29714586 29714586
7.10 Fixed assets
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Unit: Yuan
Item Ending balance Beginning balance
Fixed assets 5818499845 5894068898
Disposal of fixed assets
Total 5818499845 5894068898
7.10.1 Particulars of fixed assets
Unit: Yuan
Item
Houses and
buildings
Machinery equipment Construction tools Total
Ⅰ Original book value:
1. Beginning balance 5093628796 2730306041 26670156 7850604993
2. Increase in this period 26435121 32745994 1109021 60290136
2.1 Acquisition 16217779 30825672 1109021 48152472
2.2 Transfer in from
construction in progress
10217342 1920322 12137664
2.3 Business merger
increase
3. Decrease in this period 1037337 1037337
3.1 Disposal or
retirement
1037337 1037337
4. Ending balance 5120063917 2762014698 27779177 7909857792
Ⅱ Accumulated
depreciation
1. Beginning balance 755115344 1163797943 20144781 1939058068
2. Increase in this period 55228292 78723926 1136974 135089192
2.1 Accrual 55228292 78723926 1136974 135089192
3. Decrease in this period 267340 267340
3.1 Disposal or
retirement
267340 267340
4. Ending balance 810343636 1242254529 21281755 2073879920
Ⅲ Impairment provision
1. Beginning balance 17478027 17478027
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal or
retirement
4. Ending balance 17478027 17478027
Ⅳ Book value
1. Ending book value 4309720281 1502282142 6497422 5818499845
2. Beginning book value 4338513452 1549030071 6525375 5894068898
As at June 30 2020 the net value of the fixed assets with ownership restrictions was RMB
338237400 Yuan (December 31 2019: RMB 344670852 Yuan). Please refer to Note 7.51 for
details.
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
7.10.2 Particulars of temporarily idle fixed assets
Unit: Yuan
Item
Original book
value
Accumulated
depreciation
Depreciation
reserves
Book value Remarks
Buildings 47821026 15511660 32309366
Machinery equipment 73592531 54095030 17478027 2019474
Other equipment 3344518 3176756 167762
Total 124758075 72783446 17478027 34496602
7.10.3 Particulars of fixed assets under finance leases
Nil
7.10.4 Fixed assets under operating lease
Unit: Yuan
Item Ending book value
Machinery equipment 64944
7.10.5 Particulars of fixed assets without property certificates
Unit: Yuan
Item Book value
Reason for not receiving the property
certificate
Industrial Production Center of the R&D Company 1744312701 Under transaction
Dormitory Building Main Building and Reception Building of
Chang’an Chateau
283676202 Under transaction
European Town Main Building and Service Building of Beijing
Chateau
178930935 Under transaction
Main Building of Yantai Chateau Changyu Tinlot 78378833 Under transaction
Fermentation Workshop and Wine Storage Workshop of Xinjiang
Tianzhu
16802302 Under transaction
Office Building and Packaging Workshop of Icewine Valley 8736650 Under transaction
Wine-making Workshop of Changyu (Jingyang) 3707219 Under transaction
Office Building Laboratory Building and Workshop of
Fermentation Center
3400025 Under transaction
Finished Goods Warehouse and Workshop of Kylin Packaging 2260833 Under transaction
Office of Sales Company 2232626 Under transaction
Total 2322438325 Under transaction
7.11 Construction in progress
Unit: Yuan
Item Ending balance Beginning balance
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
Construction in progress 647036593 567478833
Engineering materials
Total 647036593 567478833
7.11.1 Particulars of construction in progress
Unit: Yuan
Item
Ending balance Beginning balance
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Research Development & Manufacture
Center (“Changyu Wine City
Complex”)
571245868 571245868 485017326 485017326
Construction Project of Ningxia
Chateau
46448561 46448561 46448561 46448561
Construction Project of Chang’an
Chateau
5002367 5002367 4052839 4052839
Construction Project of Shihezi
Chateau
1326390 1326390 877348 877348
Construction Project of Sales Company 7925062 7925062 6313962 6313962
Construction Projects of Other
Companies
15088345 15088345 24768797 24768797
Total 647036593 647036593 567478833 567478833
2020 SemiannualFinancial Reportt of Yantai Changyu Pioneer Wine Co. Ltd.
7.11.2 Changes of major construction in progress in this period
Item Budget
Beginning
balance
Increase in
this period
Transferred
to fixed
assets in this
period
Other
decrease in
this period
Ending balance
Proportion of
accumulative
project input in
budget
Accumulative
capitalized
amount of
interest
Including:
capitalized amount
of interest in this
period
Capitalization
ratio of interest
in this period
Capital source
Changyu Wine City
Complex
4505780000 485017326 92778083 6549541 571245868 79.70% 15824401 411299
1.20% and
4.3%
Loans form financial
institutions and
self-raised funds
Construction Project of
Ningxia Chateau
414150000 46448561 46448561 102.20% Self-raised funds
Construction Project of
Chang’an Chateau
620740000 4052839 6522266 5572738 5002367 111.50% Self-raised funds
Construction Project of
Shihezi Chateau
780000000 877348 449042 1326390 96.50% Self-raised funds
Construction Project of
Sales Company
161350000 6313962 1611100 7925062 101.30% Self-raised funds
Total 6482020000 542710036 101360491 12122279 631948248 -- 15824401 411299 --
As at June 30 2020 there was no indication for impairment of construction in progress of the Group so no provision for impairment was made.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.12 Productive biological assets
7.12.1 Productive biological assets by cost measurement method
Unit: Yuan
Item Plantation Total
Immature Mature
Ⅰ Original book value
1. Beginning balance 12828822 240517972 253346794
2. Increase in this period -5577636 6173226 595590
2.1 Outsourcing
2.2 Self cultivation 595590 595590
The immature turn to the mature -6173226 6173226
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 7251186 246691198 253942384
Ⅱ Accumulated depreciation
1. Beginning balance 50921508 50921508
2. Increase in this period 6782285 6782285
2.1 Accrual 6782285 6782285
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 57703793 57703793
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance
Ⅳ Book value
1. Ending book value 7251186 188987405 196238591
2. Beginning book value 12828822 189596464 202425286
As at June 30 2020 no ownership of the biological assets was restricted.
As at June 30 2020 there was no indication for impairment of biological assets of the Group so no
provision was made.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.13 Intangible assets
7.13.1 Particulars of intangible assets
Unit: Yuan
Item Land use right Software use right Trademark Total
Ⅰ Original book value
1. Beginning balance 531755702 88258481 170773266 790787449
2. Increase in this period 337512 82249 419761
2.1 Acquisition 337512 82249 419761
2.2 Internal R&D
2.3 Business merger
increase
3. Decrease in this period
3.1 Disposal
4. Ending balance 531755702 88595993 170855515 791207210
Ⅱ Accumulated amortization
1. Beginning balance 89333506 35165790 14341798 138841094
2. Increase in this period 5353487 5716724 75325 11145536
2.1 Accrual 5353487 5716724 75325 11145536
3. Decrease in this period
3.1 Disposal
4. Ending balance 94686993 40882514 14417123 149986630
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
4. Ending balance
Ⅳ Book value
1. Ending book value 437068709 47713479 156438392 641220580
2. Beginning book value 442422196 53092691 156431468 651946355
As at June 30 2020 the net value of the intangible assets with ownership restrictions was RMB
209707945 Yuan (December 31 2019: RMB 212495435). Please refer to Note 7.51 for details.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.13.2 Particulars of land use right of that not receiving the property certificate
Nil
7.14 Goodwill
7.14.1 Original book value of goodwill
Unit: Yuan
Name of the invested
unit or matter forming
goodwill
Beginning
balance
Increase in this period Decrease in this period
Ending balance Formed by business
merger
Other Disposal Other
Etablissements Roullet
Fransac (“Roullet
Fransac”)
13112525 13112525
Dicot Partners S.L
(“Atrio Group”)
92391901 92391901
Indomita Wine
Company Chile SpA
6870115 6870115
Kilikanoon Estate
Australia
37063130 37063130
Total 149437671 149437671
7.14.2 Provision for impairment of goodwill
Unit: Yuan
Name of the invested
unit or matter forming
goodwill
Beginning
balance
Increase in this period Decrease in this period
Ending balance Formed by business
merger
Other Disposal Other
Etablissements Roullet
Fransac (“Roullet
Fransac”)
Dicot Partners S.L
(“Atrio Group”)
Indomita Wine
Company Chile SpA
Kilikanoon Estate
Australia
7578478 7578478
Total 7578478 7578478
7.15 Long-term unamortized expenses
Unit: Yuan
Item Beginning balance
Increase in this
period
Amortization in this
period
Other decrease Ending balance
Land lease fees 52129414 699680 51429734
Land acquisition
fees
41460260 575734 40884526
Afforestation fees 145952500 787431 4610618 142129313
Renovation costs 32988886 1443983 31544903
Other 5064348 283327 4781021
Total 277595408 787431 7613342 270769497
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.16 Deferred income tax assets/liabilities
7.16.1 Un-offset deferred income tax assets
Unit: Yuan
Item
Ending Balance Beginning Balance
Deductible
temporary
difference
Deferred income
tax assets
Deductible
temporary
difference
Deferred income
tax assets
Asset impairment provision 43251879 10812970 54771519 13692880
Unrealized profits from inter-company
transactions
333361876 83340470 479898175 119974545
Deductible loss 286136558 73596023 247147752 63459305
Unpaid bonus 111494802 27873700 184674946 46168736
Dismission welfare 21088263 5272066 24833512 6208378
Deferred income 61772908 13428664 70643437 15422659
Total 857106286 214323893 1061969341 264926503
7.16.2 Un-offset deferred income tax liabilities
Unit: Yuan
Item
Ending Balance Beginning Balance
Taxable
temporary
difference
Deferred income
tax liabilities
Taxable
temporary
difference
Deferred income
tax liabilities
Assets appraisal appreciation in business merger
under non-common control
50453763 14303137 51829561 14691424
Total 50453763 14303137 51829561 14691424
7.16.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
Item Ending balance Beginning balance
Deductable temporary difference
Deductible loss 125159701 132081819
Total 125159701 132081819
7.16.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year Ending sum Beginning sum Remark
2020 5718454 5718454
2021 36741465 36741465
2022 26609674 26609674
2023 6987182 31350376
2024 7726790 31661850
2025 41376136
Total 125159701 132081819 --
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.17 Other non-current assets
Unit: Yuan
Item Ending balance Beginning balance
Royalty 184158436 193674320
Total 184158436 193674320
7.18 Short-term loans
7.18.1 Classification of short-term loans
Unit: Yuan
Item Ending balance Beginning balance
Pledge loan
Mortgage loan 59875404 82568222
Guaranteed loan 11476342 10677905
Fiduciary loan 665831955 661067617
Total 737183701 754313744
As at June 30 2020 mortgaged loans were Hacienday Vi?edos Marques del Atrio S.L.U ("Atrio")
factoring of accounts receivable from banks including Banco de Sabadell S.A. of EUR3964000
(equivalent of RMB31557404 Yuan) (December 31 2019: RMB54663422 Yuan). Mortgaged loans
were Indomita Wine mortgaged USD4000000 (equivalent of RMB28318000 Yuan) of its fixed
assets to BBVA (December 31 2019: RMB27904800 Yuan). Australia Kilikanoon Estate has
guaranteed loans of AUD2358621 (equivalent of RMB11476342 Yuan) (December 31 2019:
RMB10677905 Yuan).
7.19 Accounts payable
7.19.1 List of accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Accounts payable for materials etc. 379727980 570252612
Total 379727980 570252612
7.19.2 Explanation of significant accounts payable aged more than one year
As at June 30 2020 there were no significant accounts payable aged more than one year.
7.20 Contract liabilities
Unit: Yuan
Item Ending balance Beginning balance
Advances from customers 100523260 106734070
Total 100523260 106734070
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.21 Employee remunerations payable
7.21.1 List of employee remunerations payable
Unit: Yuan
Item Beginning balance
Increase in this
period
Decrease in this
period
Ending balance
1. Short-term remuneration 208889457 119601171 210105009 118385619
2. Post-employment welfare – defined
contribution plan
736147 17329399 17676500 389046
3. Dismission welfare 24833512 441038 4186287 21088263
4.Other welfare due within one year
Total 234459116 137371608 231967796 139862928
7.21.2 List of short-term remunerations
Unit: Yuan
Item Beginning balance
Increase in this
period
Decrease in this
period
Ending balance
1. Salaries bonuses allowances
and subsidies
212017795 104134847 192207416 123945226
2. Staff welfare 2001589 2260811 4169008 93392
3. Social insurance charges 567446 5617673 6121959 63160
Including: Medical insurance 567446 4982116 5486402 63160
Injury insurance 518934 518934
Maternity insurance 116623 116623
4. Housing fund 14195 5934629 5927978 20846
5. Union fee and staff education fee 1934209 1653211 1678648 1908772
6. Short-term compensated
absences
7. Short-term profit-sharing plan
Minus: Those divided into
non-current liabilities
7645777 7645777
Total 208889457 119601171 210105009 118385619
7.21.3 List of defined contribution plan
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment insurance 736137 16573752 16920853 389036
2. Unemployment insurance 10 755647 755647 10
3. Enterprise annuity payment
Total 736147 17329399 17676500 389046
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.21.4 Dismission welfare
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Compensation for server of labor
relation
441038 441038
2. Compensation for early retirement 24833512 3745249 21088263
Total 24833512 441038 4186287 21088263
7.22 Taxes and dues payable
Unit: Yuan
Item Ending balance Beginning balance
Value added tax 24637073 88590035
Consumption tax 11731929 48497550
Corporate income tax 104903260 216958309
Individual income tax 391707 840997
Urban maintenance and construction tax 2194198 6731772
Education surcharges 1589510 4858904
Urban land use tax 2343608 2216390
Other 6780990 6476014
Total 154572275 375169971
7.23 Other payables
Unit: Yuan
Item Ending balance Beginning balance
Interest payable 2167287 758047
Dividends payable 480819925 1366559
Other payables 310046401 448407879
Total 793033613 450532485
7.23.1 Interest payable
Unit: Yuan
Item Ending balance Beginning balance
Interest of long-term loans with interest paid by
installment and principal paid on maturity
Interest of corporate bonds
Interest payable of short-term loans 2167287 758047
Interest of preferred shares\ perpetual bonds
divided into financial liabilities
Other
Total 2167287 758047
7.23.2 Dividends payable
Unit: Yuan
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Ending balance Beginning balance
Ordinary stock dividends 479824800
Preferred stock dividends/sustainable debt dividends
divided into equity instruments
Other 995125 1366559
Total 480819925 1366559
7.23.3 Other payables
7.23.3.1 Other payables listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Dealer’s deposit payable 167342614 164649995
Equipment purchase and construction costs
payable
56776519 72004009
Transportation charges payable 14043603 31842443
Advertisement expenses payable 1107877 90741404
Employee cash deposit 619282 1866765
Supplier’s deposit payable 15231550 13990900
Contracting fees payable 11788691 16997685
Other 43136265 56314678
Total 310046401 448407879
7.24 Non-current liabilities due within one year
Unit: Yuan
Item Ending balance Beginning balance
Long-term loans due within one year 64996064 116826221
Bonds payable due within one year
Long-term accounts payable due within
one year
34000000 34000000
Lease liabilities due within one year
Total 98996064 150826221
7.25 Long-term loans
7.25.1 Classification of long-term loans
Unit: Yuan
Item Ending balance Beginning balance
Mortgage loan 2475871 3875992
Guaranteed loan 102138400 105093000
Fiduciary loan 178995129 136749730
Less: Long-term loans due within one year 64996064 116826221
Total 218613336 128892501
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
As at June 30 2020 credit loans were EUR22484000 borrowed by Atrio from Bankia Banco
Santander BBVA and Caja Rural de Navarr etc. (equivalent of RMB178995124 Yuan) (December
31 2019: RMB136749730 Yuan). Mortgaged loans (RMB) were long-term borrowings of
RMB43750000 Yuan of the R&D Centre a subsidiary of the Company (December 31 2019:
RMB56250000 Yuan). Australia Kilikanoon Estate has borrowed AUD12000000(equivalent of
RMB58388400 Yuan) (December 31 2019: RMB48843000 Yuan) from ANZ Bank and its
guaranteed by the Company. Mortgaged loans were borrowings of EUR311000 (equivalent of
RMB2475871 Yuan) form Popular Espa?ol pledged with its land which valued EUR2929628
(equivalent of RMB23322769 Yuan) (December 31 2019: RMB3875992 Yuan).
7.26 Long-term accounts payable
Item Ending balance Beginning balance
Long-term accounts payable 167000000 191000000
Special accounts payable
Total 167000000 191000000
7.26.1 Long-term accounts payable listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Agricultural Development Fund of China ("CADF") 201000000 225000000
Less: Long-term payables due within one year 34000000 34000000
Balance of long-term payables 167000000 191000000
In 2016 Agricultural Development Fund invested RMB 305000000 Yuan in the Research
Development & Manufacture Company accounting for 37.9% of the registered capital. According to
the investment agreement it is agreed that Agricultural Development Fund will take back the
investment fund in ten years and obtain fixed income according to year which is 1.2% of the
remaining principal. Except for the above fixed income the Agricultural Development Fund shall not
enjoy other profits of the Research Development & Manufacture Company or bear the losses of the
Research Development & Manufacture Company. Accordingly the investment of the Agricultural
Development Fund in the Research Development & Manufacture Company is equity investment
nominally which is debt investment (finance discount interest loan) in deed. The Group included the
investment of the Agricultural Development Fund in long-term accounts payable measured by
amortized cost. From January to June 2020 the Group gave back the principal of RMB 24000000
Yuan. Refer to Note 7.51 for details of mortgaged and pledged assets.
7.27 Deferred income
Unit: Yuan
Item Beginning balance
Increase in this
period
Decrease in this
period
Ending balance Forming reason
Governmental
subsidy
70701288 445536 9373916 61772908
Total 70701288 445536 9373916 61772908 --
Projects related to governmental subsidy
Unit: Yuan
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item of liabilities
Beginning
balance
Amount
of
subsidy
newly
increased
in this
period
Amount
included in
non-operating
revenue in
this period
Amount
included in
other
income in
this period
Amount
offset
the cost
expenses
Other
changes
Ending
balance
Related to
assets/income
Industrial development
support project
28700000 2050000 26650000 Related to assets
Xinjiang industrial
revitalisation and
technological
transformation project
14220000 711000 13509000 Related to assets
Fixed asset investment
reward of Shihezi
Chateau project
4716600 1140000 3576600 Related to assets
Shandong Peninsula
Blue Economic Area
construction funds
4000000 1000000 3000000 Related to assets
Special government
grant for infrastructure
3180000 530000 2650000 Related to assets
Raw wine fermentation
project
1869600 717450 1152150 Related to assets
Wine fermentation
capacity construction
(Huanren) project
2800000 200000 2600000 Related to assets
Engineering
technology
transformation of
information system
project
2320000 290000 2030000 Related to assets
Liquor electronic
tracking project
1858203 333526 1524677 Related to assets
Infrastructure
construction project
350000 445536 64378 731158 Related to assets
Special fund for
efficient water-saving
irrigation project
1877000 481000 1396000 Related to assets
Subsidy for economic
and energy-saving
technological
transformation projects
898100 64150 833950 Related to assets
Wine industry
development project
372000 93000 279000 Related to assets
Subsidy for mechanic
development of Penglai
Daliuhang Base
265397 265397 Related to assets
Coal subsidy 201500 13000 188500 Related to assets
Cross-border
e-commerce project
839958 124611 715347
Related to
income
Travelling development
fund subsidy project
560000 560000
Related to
income
Water pollution control
project fund
92930 56801 36129
Related to
income
Subsidy for boiler
reconstruction and
demolition
80000 5000 75000
Related to
income
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Special funds for the
development of
enterprises
1500000 1500000
Related to
income
Total 70701288 445536 9373916 61772908
7.28 Other non-current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Employee remunerations payable 7645777 7645777
Total 7645777 7645777
As at June 30 2020 the employee remunerations payable referred to the job security deposit deducted
from the year-end bonus of the employees higher than sales manager of the Company in proportion
which will be paid from 2021 to 2023 as predicted.
7.29 Share capital
Unit: Yuan
Beginning
balance
Increase or decrease (+-) in this period
Ending
balance Newly issued
shares
Allocated
shares
Share
transferred
from
accumulation
fund
Other Subtotal
Total shares 685464000 685464000
7.30 Capital reserves
Unit: Yuan
Item Beginning balance Increase in this period
Decrease in this
period
Ending balance
Capital premium (Share
capital premium)
559133834 559133834
Other capital reserves 5916588 5916588
Total 565050422 565050422
7.31 Other comprehensive income
Unit: Yuan
Item
Beginning
balance
Amount incurred in this period
Ending
balance
Amount
incurred
before
income
tax in this
period
Minus:
amount
included in
other
comprehensive
income before
and transferred
to profit or
loss in this
period
Minus:
amount
included in
other
comprehensive
income before
and transferred
to retained
earnings in
this period
Minus:
income
tax
expenses
Attributable
to parent
company
after tax
Attributable
to minority
shareholders
after tax
1. Other
comprehensive income
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item
Beginning
balance
Amount incurred in this period
Ending
balance
Amount
incurred
before
income
tax in this
period
Minus:
amount
included in
other
comprehensive
income before
and transferred
to profit or
loss in this
period
Minus:
amount
included in
other
comprehensive
income before
and transferred
to retained
earnings in
this period
Minus:
income
tax
expenses
Attributable
to parent
company
after tax
Attributable
to minority
shareholders
after tax
not to be reclassified
into profit and loss
later
Including: Changes
after remeasuring and
resetting the benefit
plans
Other
comprehensive income
not to be reclassified
into profit and loss
under equity law
Changes in the
fair value of other
investments in equity
instruments
Changes in the
fair value of the
enterprise's own credit
risk
2. Other
comprehensive income
to be reclassified into
profit and loss later
-4235583 -5765822 -5006653 -759169 -9242236
Including: Other
comprehensive income
to be reclassified into
profit and loss under
equity law
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 Financial
Statement
-4235583 -5765822 -5006653 -759169 -9242236
Total other
comprehensive income
-4235583 -5765822 -5006653 -759169 -9242236
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.32 Surplus reserves
Unit: Yuan
Item Beginning balance Increase in this period
Decrease in this
period
Ending balance
Legal surplus reserves 342732000 342732000
Free surplus reserves
Reserve fund
Enterprise expansion fund
Other
Total 342732000 342732000
7.33 Undistributed profit
Unit: Yuan
Item Ending balance Beginning balance
Undistributed profit at the end of prior period before adjustment 8719899359 8008982547
Total Undistributed profit at the beginning of the period before adjustment
(increase listed with+ and decrease listed with -)
-7540537
Undistributed profit at the beginning of the period after adjustment 8719899359 8001442010
Plus: Net profit for owner of the parent company 307035572 1129735749
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 479824800 411278400
Common dividend transferred to share capital
Undistributed profit at the end of period 8547110131 8719899359
7.34 Operating income and operating cost
Unit: Yuan
Item
Amount incurred in this period Amount incurred in prior period
Income Cost Income Cost
Main business 1390770376 569872959 2541459605 927958197
Other business 10836416 4777718 16815180 8294028
Total 1401606792 574650677 2558274785 936252225
7.35 Taxes and surcharges
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 49392779 68699658
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Urban maintenance and construction tax 9360101 18763626
Education surcharges 6787564 13670717
Building tax 13946836 14184915
Land use tax 5823990 5478045
Stamp duty 2276001 1504356
Other 516222 1249531
Total 88103493 123550848
7.36 Selling expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Marketing expenses 54684262 268185487
Employee remunerations 95885996 130725779
Transportation expenses 53735626
Trademark use fees 8953500
Storage and lease expenses 17922792 24274917
Depreciation expenses 25656686 20476637
Advertisement expenses 14084571 26920257
Conference expenses 2447005 8945999
Design & production expenses 1590960 2365761
Service charges 3608458 11484614
Travel expenses 8356075 11822548
Water electricity and gas charges 4080146 7697325
Office & postage costs 1840823 2801706
Packing expenses 2540043 3971486
Public security & clean-keeping
expenses
1854437 2214479
Business entertainment expenses 589472 1763307
Other 6435820 14584873
Total 250531046 591970801
7.37 Management expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Employee remunerations 27711146 62572295
Depreciation expenses 36815081 31887697
Contracting expenses 6687337 7178106
Repair expenses 4750072 8253897
Office expenses 5617017 10177651
Amortization expenses 10475529 7677849
Afforestation fees 6910323 7682946
Safe production costs 2506681 2357016
Rental expenses 4659247 4766202
Business entertainment expenses 1480213 2631383
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Public security & clean-keeping
expenses
2957475 3356435
Travel expenses 424412 2971468
Other 2075336 4039367
Total 113069869 155552312
7.38 R&D expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 1805988 2706811
Total 1805988 2706811
7.39 Financial expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 14891310 9812560
Minus: Interest income 6088281 4606417
Plus: Commission charges 2182502 1271831
Exchange gain or loss 975571 2311609
Total 11961102 8789583
7.40 Other income
Unit: Yuan
Source of other income Amount incurred in this period Amount incurred in prior period
Supporting fund for industrial development 2050000 2050000
Reward for investment in fixed assets 1140000 1140000
Special fund for construction of peninsula blue economic
zone
1000000 1000000
Other – related to assets 3497505 3082627
Special fund for supporting corporate development 38279579 51633350
Other – related to income 3813147 5305915
Total 49780231 64211892
7.41 Investment income
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Investment income from long-term equity by equity
method
-1170685
Investment income from disposal of long-term equity
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
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Amount incurred in this period Amount incurred in prior period
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 inverstment during the
holding period
Interest income gained from other equity inverstments
during the holding period
Investment income gained from disposal of other equity
inverstments
Total -1170685
7.42 Loss on impairment of credit
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Loss on bad debts of accounts receivable 100835 -765935
Total 100835 -765935
7.43 Loss on impairment of assets
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
1. Loss on bad debts
2. Inventory falling price loss and loss on
impairment of contrct execution cost
4242813 6148729
3. Loss on impairment of long-term equity
investment
4. Loss on impairment of investment real estate
5. Loss on impairment of fixed assets
6. Loss on impairment of engineering materials
7. Loss on impairment of construction in progress
8. Loss on impairment of productive biological
assets
9. Loss on impairment of oil and gas assets
10. Loss on impairment of intangible assets
11. Loss on impairment of goodwill
12. Other
Total 4242813 6148729
7.44 Income from asset disposal
Unit: Yuan
Source of income from asset disposal Amount incurred in this period Amount incurred in prior period
Income from disposal of fixed assets 39641 1138
Total 39641 1138
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.45 Non-operating income
Unit: Yuan
Item
Amount incurred in
this period
Amount incurred in
prior period
Amount included in the current
non-recurring profits/losses
Gains on debt recombination
Gains on exchange of non-monetary
assets
Grains on donations
Governmental subsidy
Other 4682230 3575914 4682230
Total 4682230 3575914 4682230
7.46 Non-operating expenses
Unit: Yuan
Item
Amount incurred in
this period
Amount incurred in
prior period
Amount included in the current
non-recurring profits/losses
Loss on debt recombination
Loss on exchange of
non-monetary assets
Donation 500000 500000
Fine penalty and overdue fine
paid due to violation of laws and
administrative regulations
31123 10811 31123
Other 336150 153239 336150
Total 867273 164050 867273
7.47 Income tax expenses
7.47.1 List of income tax expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior
period
Current income tax expenses 59475646 161779976
Deferred income tax expenses 50214323 48501602
Total 109689969 210281578
7.47.2 Adjustment process of accounting profit and income tax expenses
Unit: Yuan
Item Amount incurred in this period
Total profit 418292409
Income tax expenses calculated according to the legal/applicable tax rate 104573102
Influence of different tax rates applicable to subsidiary 1151306
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Amount incurred in this period
Influence of income tax in the term before adjustment 155763
Influence of nontaxable income
Influence of non-deductible costs expenses and losses 1878100
Influence of deductible loss from use of unconfirmed deferred income tax assets in prior
period
Influence of deductible temporary difference or deductible loss of unconfirmed deferred
income tax assets in this period
1931698
Income tax expense 109689969
7.48 Other comprehensive income
Refer to Note 7.31 for details.
7.49 Items of cash flow statement
7.49.1 Other cash received related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 40851851 62580748
Interest income 3865811 2835438
Net amercement income 269694 1225511
Other 3186178 1143923
Total 48173534 67785620
7.49.2 Other cash paid related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 218880805 348849996
Administrative expenses 37212155 41017612
Other 3049775 2912859
Total 259142735 392780467
7.50 Supplementary information to cash flow statement
7.50.1 Supplementary information to cash flow statement
Unit: Yuan
Supplementary materials Amount incurred in this period Amount incurred in prior period
1. Cash flows from operating activities calculated
by adjusting the net profit:
-- --
Net profit 308602440 602178315
Plus: Provision for impairment of assets -4343648 -5382794
Depreciation of fixed assets oil-and-gas assets 143241376 155147729
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Supplementary materials Amount incurred in this period Amount incurred in prior period
and productive biological assets
Depreciation of right-of-use assets
Amortization of intangible assets 11145536 8438742
Amortization of long-term deferred expenses 7613342 6662662
Losses on disposal of fixed assets intangible
assets and other long-term assets (profit listed
with “－”)
-39641 -1138
Losses on retirement of fixed assets (profit listed
with “－”)
2127
Losses on fair value change (profit listed with
“－”)
Financial costs (profit listed with “－”) 13316860 13987879
Investment losses (profit listed with “－”) 1170685
Decrease in deferred income tax assets (increase
listed with “-”)
50602610 50789656
Increase of deferred income tax liabilities
(decrease listed with “－”)
-388287 -3381035
Decrease in inventories (increase listed with “-”) -52113529 123958750
Decrease in operating receivables (increase listed
with “-”)
180626835 -172662167
Increase in operating payable (decrease listed with
“-”)
-689089527 -280260593
Other
Net cash flows from operating activities -29652821 499476006
2. Significant investment and financing activities
not involving cash deposit and withdrawal:
-- --
Debt transferred into assets
Convertible corporate bond due within 1 year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent: -- --
Ending balance of cash 1300790389 1573727077
Minus: Beginning balance of cash 1365772675 1206860334
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent -64982286 366866743
7.50.2 Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
1. Cash 1300790389 1365772675
Including: Cash on hand 38910 59975
Bank deposits on demand 1300751479 1365712700
Other monetary capital on demand
Due from central bank available for payment
Due from the industry
Inter-bank lending
2. Cash equivalents
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Ending balance Beginning balance
Including: Bond investment due within three months
3. Balance of cash and cash equivalents at the end of
period
1300790389 1365772675
Including: Restricted use of parent company or
subsidiaries in the group
7.51 Assets with ownership or use right restrictions
Item Ending book value Reason for restriction
Monetary capital 94216666
Loan deposit L/C deposit frozen balance of Alipay
housing fund and guaranty money for deposit in unit
card
Bills receivable 31557404 Pledge of short-term loans
Fixed assets 338237400
Pledge of short-term loans long-term loans and
long-term accounts payable
Intangible assets 209707945 Pledge of long-term accounts payable
Total 673719415 --
8. Changes in scope of consolidation
Nil
9. Equity in other entities
9.1 Equity in the subsidiaries
9.1.1 Constitution of enterprise group
Name of subsidiary
Principal business
location
Registration place
Business
nature
Proportion of
shareholding Acquisition mode
Direct Indirect
Xinjiang Tianzhu Wine
Co. Ltd. (“XinajingTianzhu”)
Shihezi Xinjiang
China
Shihezi Xinjiang
China
Manufacturing 60%
Acquired from a business
combination under
non-common control
Etablissements Roullet
Fransac (“Roullet
Fransac”)
Cognac France Cognac France Trading 100%
Acquired from a business
combination under
non-common control
Dicot Partners S.L
(“Dicot”)
Navarre Spain Navarre Spain Sales 75%
Acquired from a business
combination under
non-common control
Vi?a IndómitaS.A.Vi?a
Dos AndesS.A. and
Bodegas Santa Alicia SpA.
(“Chile Indomita WineGroup”)
Santiago Chile Santiago Chile Sales 85%
Acquired by
establishment or
investment
Kilikanoon Estate Pty Ltd
(“Australia Kilikanoon
Estate”)
Adelaide
Australia
Adelaide
Australia
Sales 82.50%
Acquired from a business
combination under
non-common control
Beijing Changyu Sales and
Distribution Co. Ltd
Beijing China Beijing China Sales 100%
Acquired by
establishment or
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Name of subsidiary
Principal business
location
Registration place
Business
nature
Proportion of
shareholding Acquisition mode
Direct Indirect
("Beijing Sales") investment
Yantai Kylin Packaging Co.Ltd. ("Kylin Packaging")
Yantai Shandong
China
Yantai Shandong
China
Manufacturing 100%
Acquired by
establishment or
investment
Yantai Chateau
Changyu-Castel Co. Ltd
("Chateau Changyu") (b)
Yantai Shandong
China
Yantai Shandong
China
Manufacturing 70%
Acquired by
establishment or
investment
Changyu (Jingyang) Wine
Co. Ltd. ("Jingyang
Wine")
Xianyang
Shaanxi China
Xianyang
Shaanxi China
Manufacturing 90% 10%
Acquired by
establishment or
investment
Yantai Changyu Pioneer
Wine Sales Co. Ltd.("Sales Company")
Yantai Shandong
China
Yantai Shandong
China
Sales 100%
Acquired by
establishment or
investment
Langfang Development
Zone Castel-Changyu
Wine Co. Ltd ("Langfang
Castel")
Langfang Hebei
China
Langfang Hebei
China
Manufacturing 39% 10%
Acquired by
establishment or
investment
Changyu (Jingyang) Wine
Sales Co. Ltd. ("Jingyang
Sales")
Xianyang
Shaanxi China
Xianyang
Shaanxi China
Sales 10% 90%
Acquired by
establishment or
investment
Langfang Changyu
Pioneer Wine Sales Co.Ltd ("Langfang Sales")
Langfang Hebei
China
Langfang Hebei
China
Sales 10% 90%
Acquired by
establishment or
investment
Shanghai Changyu Sales
and Distribution Co. Ltd.("Shanghai Sales")
Shanghai China Shanghai China Sales 30% 70%
Acquired by
establishment or
investment
Beijing Changyu AFIP
Agriculture development
Co. Ltd ("Agriculture
Development")
Miyun Beijing
China
Miyun Beijing
China
Sales 100%
Acquired by
establishment or
investment
Beijing Chateau Changyu
AFIP Global Co. Ltd.
(“AFIP”) (c)
Beijing China Beijing China Manufacturing 91.53%
Acquired by
establishment or
investment
Yantai Changyu Wine
Sales Co. Ltd. ("Wines
Sales")
Yantai Shandong
China
Yantai Shandong
China
Sales 90% 10%
Acquired by
establishment or
investment
Yantai Changyu Pioneer
International Co. Ltd.("Pioneer International")
Yantai Shandong
China
Yantai Shandong
China
Sales 70% 30%
Acquired by
establishment or
investment
Hangzhou Changyu Wine
Sales Co. Ltd.("Hangzhou Changyu")
Hangzhou
Zhejiang China
Hangzhou
Zhejiang China
Sales 100%
Acquired by
establishment or
investment
Ningxia Changyu Grape
Growing Co. Ltd.(“Ningxia Growing”)
Yinchuan
Ningxia China
Ningxia China Planting 100%
Acquired by
establishment or
investment
Huanren Changyu
National Wines Sales Co.Ltd. ("National Wines")
Benxi Liaoning
China
Benxi Liaoning
China
Sales 100%
Acquired by
establishment or
investment
Liaoning Changyu Golden
Icewine Valley Co. Ltd.("Golden Icewine Valley")
(d)
Benxi Liaoning
China
Benxi Liaoning
China
Manufacturing 51%
Acquired by
establishment or
investment
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Name of subsidiary
Principal business
location
Registration place
Business
nature
Proportion of
shareholding Acquisition mode
Direct Indirect
Yantai Development Zone
Changyu Trading Co. Ltd.
("Development Zone
Trading")
Yantai Shandong
China
Yantai Shandong
China
Sales 100%
Acquired by
establishment or
investment
Yantai Changyu Fushan
Trading Company
("Fushan Trading")
Yantai Shandong
China
Yantai Shandong
China
Sales 100%
Acquired by
establishment or
investment
Beijing AFIP Meeting
Center ("Meeting Center")
Miyun Beijing
China
Miyun Beijing
China
Services 100%
Acquired by
establishment or
investment
Beijing AFIP Tourism and
Culture ("AFIP Tourism")
Miyun Beijing
China
Miyun Beijing
China
Tourism 100%
Acquired by
establishment or
investment
Changyu (Ningxia) Wine
Co. Ltd. (“Ningxia Wine”)
Ningxia China Ningxia China Manufacturing 100%
Acquired by
establishment or
investment
Yantai Changyu Chateau
Tinlot Co. Ltd. ("Chateau
Tinlot")
Yantai Shandong
China
Yantai Shandong
China
Manufacturing 65% 35%
Acquired by
establishment or
investment
Qing Tong Xia Changyu
Wine Marketing Ltd.("Qing Tong Xia Sales")
Ningxia China Ningxia China Sales 100%
Acquired by
establishment or
investment
Xinjiang Chateau Changyu
Baron Balboa Co. Ltd.
(“Chateau Shihezi”)
Shihezi Xinjiang
China
Shihezi Xinjiang
China
Manufacturing 100%
Acquired by
establishment or
investment
Ningxia Chateau Changyu
Moser XV Co. Ltd.
(“Chateau Ningxia”)
Yinchuan
Ningxia China
Yinchuan
Ningxia China
Manufacturing 100%
Acquired by
establishment or
investment
Shaanxi Chateau ChangyuRena Co. Ltd. (“Chateau
Chang’an”)
Xianyang
Shaanxi China
Xianyang
Shaanxi China
Manufacturing 100%
Acquired by
establishment or
investment
Yantai Changyu Wine
Research & Development
Centre Co. Ltd. (“R&D
Centre”) (e)
Yantai Shandong
China
Yantai Shandong
China
Manufacturing 72%
Acquired by
establishment or
investment
Changyu (HuanRen) Wine
Co. Ltd ("Huan Ren Wine")
Benxi Liaoning
China
Benxi Liaoning
China
Manufacturing 100%
Acquired by
establishment or
investment
Xinjiang Changyu Sales
Co. Ltd ("Xinjiang
Sales")
Shihezi Xinjiang
China
Shihezi Xinjiang
China
Sales 100%
Acquired by
establishment or
investment
Ningxia Changyu Trading
Co. Ltd ("Ningxia Trading")
Yinchuan
Ningxia China
Yinchuan
Ningxia China
Sales 100%
Acquired by
establishment or
investment
Shaanxi Changyu Rena
Wine Sales Co. Ltd
("Shaanxi Sales")
Xianyang
Shaanxi China
Xianyang
Shaanxi China
Sales 100%
Acquired by
establishment or
investment
Penglai Changyu Wine
Sales Co. Ltd ("Penglai
Wine")
Penglai
Shandong China
Penglai
Shandong China
Sales 100%
Acquired by
establishment or
investment
Laizhou Changyu Wine
Sales Co. Ltd ("Laizhou
Sales")
Laizhou
Shandong China
Laizhou
Shandong China
Sales 100%
Acquired by
establishment or
investment
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Name of subsidiary
Principal business
location
Registration place
Business
nature
Proportion of
shareholding Acquisition mode
Direct Indirect
Francs Champs
Participations SAS
(“Francs Champs”)
Cognac France Cognac France
Investment
and trading
100%
Acquired by
establishment or
investment
Beijing Retailing Co. Ltd
("Beijing Retailing")
Beijing China Beijing China Sales 100%
Acquired by establishment
or investment
Tianjin Changyu Pioneer
Sales Co. Ltd ("Tianjin
Pioneer") (a)
Tianjin China Tianjin China Sales 100%
Acquired by
establishment or
investment
Beijing Changyu Pioneer
Sales Co. Ltd ("Beijing
Pioneer") (a)
Beijing China Beijing China Sales 100%
Acquired by
establishment or
investment
Yantai Roullet Fransac WineSales Co. Ltd. (“Yantai Roullet
Fransac”)
Yantai Shandong
China
Yantai Shandong
China
Sales 100%
Acquired by
establishment or
investment
Guangzhou Changyu
Pioneer Sales Co. Ltd
("Guangzhou Pioneer") (a)
Guanghzou
Guangdong China
Guanghzou
Guangdong China
Sales 100%
Acquired by
establishment or
investment
Yantai Changyu Wine
Sales Co. Ltd. ("Wine
Sales Company")
Yantai Shandong
China
Yantai Shandong
China
Sales 100%
Acquired by
establishment or
investment
Shaanxi Chateau Changyu
Rena Tourism Co. Ltd
("Chateau Tourism")
Xianxin Shaanxi
China
Xianxin Shaanxi
China
Tourism 100%
Acquired by
establishment or
investment
Longkou Changyu Wine
Sales Co. Ltd ("Longkou
Sales")
Yantai Shandong
China
Yantai Shandong
China
Sales 100%
Acquired by
establishment or
investment
Explanation for difference between the proportion of shareholding and proportion of voting power in
the subsidiaries:
(a) Companies above were deregistered in 2020.(b) Chateau Changyu is a Sino-foreign joint venture established by the Company and a foreign
investor accounting for 70% of Changyu Chateau's equity interest. Through agreement arrangement
the Company has the full power to control Changyu Chateau's strategic operating investing and
financing policies. The agreement arrangement will be terminated on December 31 2022.(c) AFIP is a limited liability company jointly established by the Company and Yantai De’an and
Beijing Qinglang. In June 2019 Yantai Dean transferred 1.31% of its equity to Yantai Changyu.After
the equity change the Company holds 91.53% of its equity. Through agreement arrangement the
Company has the full power to control AFIP's strategic operating investing and financing policies.
The agreement arrangement will be terminated on September 2 2024.(d) Icewine Valley is a Sino-foreign joint venture established by the Company and a foreign investor
whose 51% of the shares are held by the Company. The Company exercises full control over the
operation investment and financing policies of Icewine Valley by contract arrangement. The contract
arrangement will expire on December 31 2021.(e) The Research Development & Manufacture Company is a joint venture established by the
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Company and Agricultural Development Fund whose 72% of the shares were held by the Company
on December 31 2019. As stated in Note 7.27 the Company exercises full control over the operation
investment and financing policies of the Research Development & Manufacture Company by contract
arrangement. The contract arrangement will expire on May 22 2026. Up to June 30 2020 the
remaining investment of the Agricultural Development Fund accounted for 28.67% of the registered
capital.
9.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
Name of subsidiary
Shareholding
proportion of
minority
shareholders
Profit/loss
attributable to
minority
shareholders in this
period
Other
comprehensive
income attributable
to minority
shareholders in this
period
Dividend declared
to be distributed to
minority
shareholders in this
period
Balance of minority
shareholder’s
interest at the end
of period
Xinjiang Tianzhu 40% -1268453 46315685
Atrio Group 25% 2735240 538514 995125 34148093
Changyu Chateau 30% 12365016
Langfang Castel 51% -605347 19033761
AFIP 8.47% 56409393
Icewine Valley 49% 33319062
Indomita Wine 15% 549632 -1094853 53385908
Kilikanoon Estate
Australia
17.50% 155796 -202830 185128 14578260
Explanation for difference between the proportion of shareholding and proportion of voting power of
the minority shareholders in the subsidiaries: See details in Note 9.1.1.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
9.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Name of subsidiary
Ending balance Beginning balance
Current assets
Non-current
assets
Total assets
Current
liabilities
Non-current
liabilities
Total
liabilities
Current assets
Non-current
assets
Total assets
Current
liabilities
Non-current
liabilities
Total
liabilities
Xinjiang Tianzhu 25075535 59767796 84843331 140364 5336114 5476478 24829435 61886751 86716186 36185 5336114 5372299
Changyu Chateau 130901716 112847346 243749063 163197646 163197646 142525011 113168202 255693213 174843671 400000 175243671
Langfang Castel 15755772 14271097 30026870 1256937 1256937 19021766 14958223 33979989 4023101 4023101
Beijing Chateau 250019242 441579625 691598867 35864457 188500 36052957 251829164 452444880 704274044 45607611 201500 45809111
Icewine Valley 49358507 22498140 71856647 26818687 100000 26918687 38234720 23291375 61526095 12077206 100000 12177206
Marques del Atrio 414831789 94319003 509150792 226512338 145632259 372144597 470219326 91571444 561790770 380788880 53110213 433899093
Indomita Wine 214245502 289781873 504027375 135350982 5212702 140563684 223722688 291630115 515352803 142365749 5152974 147518723
Kilikanoon Estate
Australia
105402015 61788070 167190085 24695865 60119965 84815830 94473620 61770599 156244219 21801347 50741981 72543328
Unit: Yuan
Name of
subsidiary
Amount incurred in this period Amount incurred in prior period
Operating income Net profit
Total comprehensive
income
Operating cash
flow
Operating income Net profit
Total comprehensive
income
Operating cash flow
Xinjiang Tianzhu -3171133 -3171133 -756855 -3001571 -1297212 -417462
Changyu Chateau 15274042 -416327 -416327 9574274 24470842 -2189871 -686874 6946282
Langfang Castel 116711 -1186955 -1186955 -54248 -1474975 -821013 25801
Beijing Chateau 50688043 -2919024 -2919024 -1954062 90339526 12711985 22752823 9667568
Icewine Valley 7365586 -4410928 -4410928 733935 19763387 -1986710 -754056 1903734
Marques del Atrio 130982536 10940963 13095017 -50830985 129064457 1859381 -4084674 -23846960
Indomita Wine 78507227 3664211 -3634807 29108449 86818838 3762504 1880687 -1725571
Kilikanoon Estate
Australia
18928910 890266 -268764 -6891812 22852809 -1509147 -4011458 1024962
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
10. Risks related to financial instruments
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 analyse the risks faced by the Group to 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.
10.1 Credit risk
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 at June 30 2020 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.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
In order to minimise 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 recognised 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 at June 30 2020 20.1% of the Group trade receivables are due from top
five customers (December 31 2019: 20.3%). There is no collateral or other credit enhancement on the
balance of the trade receivables of the Group.
10.2 Liquidity risk
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 Company 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 Company’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 realisable marketable securities and adequate committed lines of funding
from major financial institutions to meet its liquidity requirements in the short and longer term.
10.3 Interest rate risk
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.
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
(1) As at June 30 2020 the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: Yuan
Item
June 30 2020 December 31 2019
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Cash at bank 1.4%-2.75% 81200000 1.1%-2.75% 106128600
Financial liabilities
- Short-term loans 0.35%-4.9% -187183701 0.35%-4.9% -204313744
- Long-term loans (including the
portion due within one year)
1%-4.275% -239859400 1%-2.5% -189468722
- Long-term payables (including the
portion due within one year)
1.20% -201000000 1.20% -225000000
Total -546843101 -512653866
Variable rate instruments:
Unit: Yuan
Item
June 30 2020 December 31 2019
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Cash at bank 0.3%-1.1% 1395007055 0.3%-1.75% 1459595405
Financial liabilities
- Short-term loans LPR -550000000 LPR -550000000
- Long-term loans (including the
portion due within one year)
90% of 5-year LPR -43750000 90% of 5-year LPR -56250000
Total 801257055 853345405
(2) Sensitivity analysis
Management of the Group believes interest rate risk on bank deposit is not significant therefore does
not disclose sensitivity analysis for interest rate risk.
As at June 30 2020 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
RMB1113281 Yuan (2019: RMB2273438 Yuan) and net profit by RMB1113281 Yuan (2019:
RMB2273438 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
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 annualised impact on interest expense
or income of such a change in interest rates.
10.4 Foreign currency risk
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 2020 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
Item
June 30 2020 December 31 2019
Balance at foreign
currency
Balance at RMB
equivalent
Balance at foreign
currency
Balance at RMB
equivalent
Cash at bank and on hand 5423409 38957649 6662525 46592414
- USD 4783307 33863425 6525673 45524399
- EUR 639871 5094014 136628 1067814
- HKD 230 210 224 201
Short-term loans 12490000 88422955 12490000 87132738
- USD 12490000 88422955 12490000 87132738
(2) Sensitivity analysis
Assuming all other risk variables remained constant a 5% strengthening of the Renminbi against the
US dollar Euro and Hong Kong dollar at June 30 2020 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
Item Equity Net profit
June 30 2020
USD 2727977 27279777
EUR -53391 -53391
HKD
Total 2674586 2674586
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
December 31 2019
USD 2080417 2080417
EUR -53391 -53391
HKD -10 -10
Total 2027016 2027016
A 5% weakening of the Renminbi against the US dollar Euro and Hong Kong dollar at June 30 2020
would have had the equal but opposite effect to the amounts shown above on the basis that all other
variables remained constant.
11. Fair value disclosure
All financial assets and financial liabilities held by the Group are carried at amounts not materially
different from their fair value at June 30 2020.
12. Related parties and related transactions
12.1 Particulars of the parent company of the Company
Name of parent
company
Registration place Business nature Registered capital
Proportion of
shareholding of the
parent company in
the Company
Proportion of
voting powers of
the parent company
in the Company
Changyu Group
Company
Yantai City
Manufacturing
industry
50000000 50.40% 50.40%
From January to June 2020 there was no fluctuation in the registered capital of the parent company
and its share in equity interest and voting right.
12.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 9.
12.3 Information about joint ventures and associates of the Company
Other joint ventures and associates that have related party transactions with the Company during this
period or that formed balance when having related party transactions with the Company during the
prior period are as follows:
Name of entity Relationship with the Company
L&M Holdings Joint venture of the Group
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
12.4 Particulars of other related parties
Name of other related parties Relationship between other related parties and the CompanyYantai Changyu Wine Culture Museum Co. Ltd. (“Wine
Culture Museum”)
A company controlled by the same parent company
Yantai Changyu Window of International Wine City Co. Ltd.(“Window of Wine City”)
A company controlled by the same parent company
Yantai God Horse Packing Co. Ltd. (“God Horse Packing”) A company controlled by the same parent companyYantai Zhongya Medical Health Wine Co. Ltd. (“ZhongyaMedical”)
A company controlled by the same parent company
Yantai Changyu Cultural Tourism Product Sales Co. Ltd.
(“Cultural Sales”)
A company controlled by the same parent company
Yantai Changyu Cultural Tourism Development Co. Ltd.
(“Cultural Development”)
A company controlled by the same parent company
L&M Holdings Joint ventures
Mirefleurs Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”） Subsidiaries of the joint venture
12.5 Related transactions
12.5.1 Related transactions of purchasing and selling goods and providing and receiving
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 35624517 95990354
Zhongya Medical Purchasing goods 574791 6037893
Wine Culture Museum Purchasing goods 5975817 9475159
Window of Wine City Purchasing goods 1014685 2857130
Cultural Sales Purchasing goods 3265703
Cultural Development Purchasing goods 156616
List of selling goods/providing services
Unit: Yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
Wine Culture Museum Selling goods 2765314 3377011
Window of Wine City Selling goods 1441166 3891101
Zhongya Medical Selling goods 1349021 2559870
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
God Horse Packing Selling goods 1915 3520
Cultural Sales Selling goods 21600 3873204
Cultural Development Selling goods 1836470 1847727
The price of transactions between the Group and the related parties are based on the negotiated price.
12.5.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
12.5.3 Leasing with related parties
The Company as a lessor:
Unit: Yuan
Name of the lessee Type of leased assets
Rental income recognized in
this period
Rental income recognized in
prior period
God Horse Packing Office building and plant 746275 742883
Zhongya Medical Office building 260279
The Company as a lessee:
Unit: Yuan
Name of the lessor Type of leased assets Rent recognized in this period Rent recognized in prior period
Changyu Group Company Office building and plant 3595583 3447891
12.5.4 Related guarantee
Nil
12.5.5 Inter-bank borrowing and lending of related parties
Nil
12.5.6 Asset transfer and debt recombination of related parties
Nil
12.5.7 Other related transactions
Unit: Yuan
Item Note Amount incurred in this period Amount incurred in prior period
Trademark use fee (a)
8977248
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
The price of transactions between the Group and the related parties are based on the negotiated price.
12.6 Accounts receivable and payable of the related parties
12.6.1 Accounts receivable
Unit: Yuan
Item Related parties
Ending balance Beginning balance
Book balance
Provision for
bad debts
Book balance
Provision for
bad debts
Accounts receivable Zhongya Medical 2005182 67379 4292386 59268
Accounts receivable Window of Wine City 1610485 22237
Other receivable Changyu Group 3775362
Other receivables God Horse Packing 1626800 813400
Other non-current assets Changyu Group 184158436 193674320
Prepayment Mirefleurs 6429542
Prepayment L&M Holdings 1632941
12.6.2 Accounts payable
Unit: Yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 37075376 39893538
Accounts payable Zhongya Medical 4392389 1024310
Accounts payable Wine Culture Museum 4874963
Accounts payable Window of Wine City 3758054
Accounts payable Cultural Sales 297956
Accounts payable Cultural Development 142610
Other accounts payable God Horse Packing 604000 450000
13. Share-based payment
Nil
14. Commitment and contingency
14.1 Significant commitment
Unit: Yuan
Item Ending balance Beginning balance
Making long-term asset commitments 539980000 679980000
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
14.2 Contingency
As of the balance sheet date the Group didn’t have any contingency to be disclosed.
15. Matters after balance sheet
15.1 Important non-adjusting events
Nil
15.2 Profit distribution
Unit: Yuan
Profits or dividends to be distributed 479824800
Allocated profits or dividends approved to declare upon
discussion
479824800
15.3 Other statement of events after the balance sheet date
According to the decision of the Shareholders’ Meeting dated May 17 2020 based on the issued
capital stock of 685464000 shares in 2019 the Company allocated RMB 7 Yuan in cash (including
tax) for every 10 shares to all shareholders with the total cash dividends of RMB 479824800 Yuan.Such cash dividends were distributed on July 10 2020 and July 14 2020 respectively.
16. Other important matters
Nil
17. Notes on major items in financial statements of the parent company
17.1 Accounts receivable
17.1.1 Accounts receivable disclosed by type
Unit: Yuan
Type
Ending balance Beginning balance
Book balance
Provision for bad
debts Book
value
Book balance
Provision for bad
debts
Book value
Amount Proportion Amount
Accrued
proportion
Amount Proportion Amount
Accrued
proportion
Accounts receivable for
which provision for bad
debts is accrued on a
single item basis
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Accounts receivable for
bad debts is accrued on
a combined basis
304238 100% 1978 0.7% 302260 2589936 100% 601610 23.2% 1988326
Total 304238 100% 1978 0.7% 302260 2589936 100% 601610 23.2% 1988326
Provision for bad debts accrued on a combined basis:
Unit: Yuan
Name
Ending balance
Book balance Provision for bad debts Accrued proportion
Amounts due from related
parties
304238 1978 0.7%
Total 304238 1978 --
Disclosed by age:
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 304238
1-2 years
2-3 years
Over 3 years
Total 304238
17.1.2 Provision for bad debts accrued withdrawn or transferred back in this period
Unit: Yuan
Type
Beginning
balance
Changes in t his period
Ending balance
Accrued
Withdrawn or
transferred back
Cancelled
Accounts receivable for
which provision for bad
debts is accrued by
credit risk features
601610 599632 1978
Total 601610 599632 1978
17.1.3 Accounts receivable actually cancelled after verification in this period
Nil
17.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the ending
balance
Unit: Yuan
Unit name
Ending balance of accounts
receivable
Proportion in total ending
balance of accounts receivable
Ending balance of bad debt
reserves
Zhongya Medicine and Health
Care Wine Company
304238 100% 1978
Total 304238 100%
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
17.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
17.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
17.2 Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Interest receivable 464614 90355
Dividends receivable 2985375 200000000
Other receivables 275433946 386334603
Total 278883935 586424958
17.2.1 Interest receivable
Unit: Yuan
Item Ending balance Beginning balance
Fixed deposit 464614 90355
Entrusted loan
Bond investment
Total 464614 90355
17.2.2 Dividends receivable
Unit: Yuan
Item (or the invested unit) Ending balance Beginning balance
Dividends receivable from subsidiaries 2985375 200000000
Total 2985375 200000000
17.2.3 Other receivables
1) Particulars of other receivables classified by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Accounts receivable from subsidiaries 272221693 385328319
Accounts receivable from related parties 2359130 813440
Other 853123 192844
Total 275433946 386334603
2) Disclosed by age
Unit: Yuan
Age Ending balance
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Age Ending balance
Within 1 year (including 1 year) 275413946
1-2 years
2-3 years
More than 3 years 20000
Total 275433946
3) Provision for bad debts accrued withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 Yuan.
4) Accounts receivable actually cancelled after verification in this period
Nil
5) Other accounts receivable collected by the borrower of top 5 units ranked by the ending balance
Unit: Yuan
Unit Nature of fund Ending balance Age
Percentage in the
total ending
balance of other
accounts receivable
Ending balance
of provision for
bad debts
Sales Company
Internal incomings
and outgoings
236837358 Within 1 year 86.0%
R&D Company
Internal incomings
and outgoings
19536550 Within 1 year 7.1%
Longkou Sales
Internal incomings
and outgoings
9692960 Within 1 year 3.5%
God Horse Packaging
Internal incomings
and outgoings
1626800 Within 1 year 0.6%
Golden Icewine Valley
Internal incomings
and outgoings
774832 Within 1 year 0.3%
Total -- 268468500 -- 97.5%
6) Accounts receivable related to governmental subsidy
Nil
7) Other accounts receivable derecognized due to transfer of financial assets
Nil
8) Other accounts receivable transferred and included in assets and liabilities
Nil
17.3 Long-term equity investment
Unit: Yuan
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item
Ending balance Beginning balance
Book balance
Impairment
reserve
Book value Book balance
Impairment
reserve
Book value
Investment in
subsidiaries
7437422621 7437422621 7432422621 7432422621
Investment in associated
enterprises and joint
ventures
Total 7437422621 7437422621 7432422621 7432422621
17.3.1 Investment in subsidiaries
Unit: Yuan
Invested unit
Beginning
balance (book
value)
Increase and decrease in this period
Ending
balance (book
value)
Ending
balance of
provision for
impairment
Increase in
investment
Decrease in
investment
Provision for
impairment
accrued
Others
Xinjiang Tianzhu 60000000 60000000
Kylin Packaging 23176063 23176063
Changyu Chateau 28968100 28968100
Pioneer International 3500000 3500000
Ningxia Growing 36573247 36573247
National Wine 2000000 2000000
Icewine Valley 30440500 30440500
Beijing Chateau 588389444 588389444
Sales Company 7200000 7200000
Langfang Sales 100000 100000
Langfang Castel 19835730 19835730
Wine Sales 4500000 4500000
Shanghai Marketing 300000 300000
Beijing Marketing 850000 850000
Jingyang Sales 100000 100000
Jingyang Wine 900000 900000
Ningxia Wine 222309388 222309388
Ningxia Chateau 453463500 453463500
Chateau Tinlot 212039586 212039586
Shihezi Chateau 812019770 812019770
Chang’an Chateau 803892258 803892258
Research
Development &
Manufacture
Company
3288906445 3288906445
Huanren Wine 22200000 22200000
Wine Sales Company 5000000 5000000
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Invested unit
Beginning
balance (book
value)
Increase and decrease in this period
Ending
balance (book
value)
Ending
balance of
provision for
impairment
Increase in
investment
Decrease in
investment
Provision for
impairment
accrued
Others
Francs Champs 236025404 236025404
Marques del Atrio 190150544 190150544
Indomita Wine 274248114 274248114
Kilikanoon Estate
Australia
110334528 110334528
Total 7432422621 5000000 7437422621
17.4 Operating income and operating cost
Unit: Yuan
Item
Amount incurred in this period Amount incurred in prior period
Income Cost Income Cost
Main business 132995774 125288367 334207600 292023685
Other business 19954741 17952827 18143402 17546895
Total 152950515 143241194 352351002 309570580
17.5 Investment income
Unit: Yuan
Item
Amount incurred in
this period
Amount incurred in
prior period
Income from long-term equity investment by cost method 87474604 264221755
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
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item
Amount incurred in
this period
Amount incurred in
prior period
Gains generated from the remaining equity remeasured as per fair value after
the loss of control
Total 87474604 264221755
18. Supplementary materials
18.1 List of non-current profits/losses in this period
Unit: Yuan
Item Amount Remark
Profits/losses on disposal of non-current assets 39641
Tax return deduction and exemption approved beyond the authority or
without formal approval document
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 the state)
49780231
Payment for use of funds by non-financial enterprises included in the current
profits/losses
Income obtained when the investment cost obtained by the enterprise from
subsidiaries joint-run business and joint venture is less than the fair value of
the net identifiable assets obtained from the invested units when the
investment is made
Profits/losses on exchange of non-monetary assets
Profits/losses on entrusting other people to make investment or manage assets
Asset impairment provision accrued due to force majeure such as natural
disaster
Profits/losses on debt restructuring
Enterprise reorganization expenses such as staffing expenditure and
integration expenses etc.Profits/losses on those beyond the fair value generated from transactions with
unfair transaction price
Current net profits/losses on subsidiaries acquired from a business
combination under common control from the beginning to the consolidation
date
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Amount Remark
Profits/losses on contingencies irrelated to the normal business of the
Company
Profits/losses on changes of fair value of tradable financial assets derivative
financial assets tradable financial liabilities and derivative financial
liabilities and investment income from disposal of tradable financial assets
derivative financial assets tradable financial liabilities derivative financial
liabilities and other investment in creditor's rights excluding effective
hedging operations relevant to the normal business of the Company
Transfer-back of accounts receivable with single impairment test and
provision for impairment of contract assets
Profits/losses on external entrusted loans
Profits/losses on fair value changes of investment real estate with fair value
mode for follow-up measurement
Influence of the one-time adjustment of the current profits/losses in
accordance with tax and accounting laws and regulations on the current
profits/losses
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items 3814957
Other profits/losses conforming to the definition of non-current profits/losses
Minus: Influenced amount of income tax 13221932
Influenced amount of minority shareholders’ equity 144174
Total 40268723 --
18.2 Return on net assets and earnings per share
Profit incurred in this period
Weighted average return on
net assets
Earnings per share
Basic EPS
(Yuan/Share)
Diluted EPS
(Yuan/Share)
Net profit attributable to common
shareholders of the Company
2.96% 0.45 0.45
Net profit attributable to common
shareholders of the Company deducting
non-incidental profits/losses
2.57% 0.39 0.39
2020 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
18.3 Accounting data difference under domestic and foreign accounting standard
18.3.1 Net profits & net assets difference disclosed in the financial report according to
the international accounting standard and Chinese accounting standard
Unit: Yuan
Net profits Net assets
Amount incurred in
this period
Amount incurred in prior
period
Ending balance Beginning balance
In accordance with the
Chinese accounting standard
307035572 603403789 10131863831 10308910198
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting
standard
307035572 603403789 10131863831 10308910198
