Yantai Changyu Pioneer Wine Co. Ltd.2020 Third Quarter Report
Final 2020-04
October 2020
I. Important Notice
The board of directors the board of supervisors directors supervisors and senior executives
of the Company guarantee the truthfulness accuracy and completeness of the contents
contained in the third quarter report with no false records misleading statements or
significant omissions and undertake individual and joint legal liabilities.
All directors attended the meeting for deliberating this quarter report.
Mr. Zhou Hongjiang (Person in charge of the Company) Mr. Jiang Jianxun (Person in
charge of accounting work) and Mrs. Guo Cuimei (Person in charge of accounting organ &
Accountant in charge) assure the truthfulness accuracy and completeness of the financial
statements in the third quarter report.
II. Corporate Information
1. Key accounting data and financial indicators
Whether the Company makes retroactive adjustments or restates the accounting data of previous fiscal years.?Yes ?No
The reason of makes retroactive adjustments or restates: business combination under the same control
The end of this
report period
The end of last year More or less than last year (%)
Before adjustment After adjustment After adjustment
Total assets (CNY) 13049517856 13647932568 13767237838 -5.21%
Net assets attributed to
the shareholders of the
listed company (CNY)
10198945037 10308910198 10401071088 -1.94%
This report
period
Same period of last year
More or less
than last
year (%)
From the
beginning of the
year to the end of
this report period
Same period of last year
More or less
than last year
(%)
Before
adjustment
After
adjustment
After
adjustment
Before
adjustment
After
adjustment
After
adjustment
Operating income (CNY) 774191143 968100175 980743772 -21.06% 2192739690 3526374960 3553926816 -38.30%
Net profit attributed to
the shareholders of the
listed company (CNY)
85120851 125557834 130147686 -34.60% 403760926 728961623 740898517 -45.50%
Net profit attributed to
the shareholders of the
listed company after
deducting the
extraordinary gains and
losses (CNY)
73406867 119702422 119702422 -38.68% 340173716 672193117 672193117 -49.39%
Net cash flow from
operating activities
(CNY)
268955826 145855707 150903125 78.23% 252437074 645331713 656726875 -61.56%
Basic earnings per share
(CNY/share) 0.12 0.18 0.19 -36.84% 0.59 1.06 1.08 -45.37%
Diluted earnings per
share (CNY/share) 0.12 0.18 0.19 -36.84% 0.59 1.06 1.08 -45.37%
Weighted average for
earning rate of the net
assets
0.92% 1.31% 1.37% -0.45% 3.85% 7.38% 7.50% -3.65%
Details of extraordinary profit and loss
?Available ?Not available
Unit:CNY
Item
Amount from the
beginning of the year to the
end of report period
Explanation
Disposal gains and losses for non-current assets
including the reversal of accrued impairment
provision
-1124290
Government grants credited in current profit and loss
(except for those recurring government grants that are
closely related to the entity's operation in line with
related regulations and have proper basis of
calculation)
65451990
Current net profit and loss of subsidiary arising from
business combination under the same control for the
current period from the beginning of the period to the
date of the merger
12943426
Other non-operating income and expenses in addition
to above items 4701227
Less: Income tax effect 17066302
Minority interests effect (after-tax) 1318841
Total 63587210 --
The reasons shall be made clear and definitely as to the extraordinary profit and loss that the
Company has defined by virtue of the Explanatory Announcement on Public Company’s
Information Disclosure No.1 - Extraordinary Profit and Loss and as to regarding the extraordinary
profit and loss as recurrent profit and loss as specified in the Explanatory Announcement on Public
Company’s Information Disclosure No.1 - Extraordinary Profit and Loss.
?Available ?Not available
There is no situation regarding the extraordinary profit and loss as defined and specified in the
Explanatory Announcement on Public Company’s Information Disclosure No.1 - Extraordinary
Profit and Loss as recurrent profit and loss.
2. The total number of shareholders and the shareholding of top 10 shareholders at the end
of the report period
1) The total number of common shareholders and the total number of preferred
shareholders with recovered voting power as well as the shareholding of top 10
shareholders
Unit: share
Total number of common
shareholders at the end of report
period
48873
Total number of preferred
shareholders with recovered
voting power at the end of
report period (if have)
0
The top 10 common shareholders
Name of Shareholders Character ofshareholders
Shareholding
ratio
(%)
Number of
holding
shares
Number
of
restricted
Pledged or
frozen
Share Number
shares status
YANTAI CHANGYU GROUP
CO. LTD.
Domestic
non-state-
owned legal
person
50.40% 345473856 — —
GAOLING FUND L.P. Foreign legalperson 3.08% 21090219 — —
CHINA SECURITIES FINANCE
CORP
State-owned
legal person 2.25% 15440794 — —
BBH BOS S/A FIDELITY FD -
CHINA FOCUS FD
Foreign legal
person 2.02% 13822699
— —
SHENWAN HONGYUAN
SECURITIES(HONG KONG)
LIMITED
Foreign legal
person 1.20% 8228333
— —
FIDELITY PURITAN TRUST:
FIDELITY SERIES INTRINSIC
OPPORTUNITIES FUND
Foreign legal
person 0.93% 6350762
— —
GUOTAI JUNAN
SECURITIES(HONGKONG)
LIMITED
Foreign legal
person 0.76% 5215446
— —
CENTRAL HUIJIN ASSET
MANAGEMENT LTD.
State-owned
legal person 0.69% 4761200
— —
HAITONG INTERNATIONAL
SECURITIES COMPANY
LIMITED-ACCOUNT CLIENT
Foreign legal
person 0.68% 4687187 — —
FIDELITY CHINA SPECIAL
SITUATIONS PLC
Foreign legal
person 0.55% 3779202
— —
The shareholding of top 10 shareholders with unrestricted shares
Name of Shareholders
Number of
unrestricted
shares held
Type of share
Type of share Number
YANTAI CHANGYU GROUP CO. LTD. 345473856 A share 345473856
GAOLING FUNDL.P. 21090219 B share 21090219
CHINA SECURITIES FINANCE CORP 15440794 A share 15440794
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 13822699 B share 13822699
SHENWAN HONGYUAN SECURITIES(HONG
KONG) LIMITED 8228333 B share 8228333
FIDELITY PURITAN TRUST: FIDELITY SERIES
INTRINSIC OPPORTUNITIES FUND 6350762 B share 6350762
GUOTAI JUNAN SECURITIES(HONGKONG)
LIMITED 5215446 B share 5215446
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 4761200 A share 4761200
HAITONG INTERNATIONAL SECURITIES
COMPANY LIMITED-ACCOUNT CLIENT 4687187 B share 4687187
FIDELITY CHINA SPECIAL SITUATIONS PLC 3779202 B share 3779202
The explanation for the associated
relationship and accordant action of
the top 10 shareholders
Yantai Changyu Group Company Limited has no associated
relationship or accordant action relationship with the other 9 listed
shareholders and the relationship among the other shareholders is
unknown.
Explanation for the top 10
shareholders who involved in
financing activities and stock trading
business(if any)
No
Whether or not the Company’s top 10 common shareholders and top 10 common shareholders with
unrestricted shares conduct agreed buy-back transaction during the report period
? Yes ? No
There are no top 10 common shareholders or top 10 common shareholders with unrestricted shares
in the Company conduct agreed buy-back transaction during the report period.
2) The total number of preferred shareholders and the shareholding of top 10 preferred
shareholders
? Available ? Not available
III. Major Issue
1. Situation and reasons on changes in main financial data and financial index during the report period
? Available ? Not available
Unit: CNY
Item Endingbalance
Initial
balance Increase rate Reason for change
Accounts receivables 163837210 265693603 -38.34% Mainly due to decrease in trade receivables
Account prepaid 22130403 67840190 -67.38% Mainly due to decrease in advance payment for raw materials
Other receivables 65496611 24380907 168.64% Mainly due to receivables from disposal of fixed assets
Interest receivable 634668 148927 326.16% Mainly due to increase in interest receivable of fixed deposit
Advance receipts 131429639 -100.00% Mainly due to being included in contract liability in accordancewith new Revenue Standards in 2020
Long-term borrowing 203994136 128892501 58.27% Mainly due to increase in long-term borrowing from the bank
Item Amount incurrent period
Amount in
last period Increase rate Reason for change
Operating income 2192739690 3553926816 -38.30% Mainly due to decrease in product sales volume affected byCOVID-19
Selling expenses 421620422 932125012 -54.77% Mainly due to reduce in marketing activities affected byCOVID-19
Loss of credit impairment
(loss is listed with "-") 3125029 -2183171 Not applicable Mainly due to the turn back of provision for bad debts
Loss of impairment of assets
(loss is listed with "-") 5083785.00 1691320 200.58%
Mainly due to the turn back of preparation for assets
impairment
Net profits attributed to the
owner of parent company 403760926 740898517 -45.50% Mainly due to decrease in sales revenue affected by COVID-19
Cash received from sales of
goods and rending of services 2310331855 3404022629 -32.13% Mainly due to decrease in sales revenue affected by COVID-19
Sub-total of cash inflows of
operating activities 2413325169 3519431675 -31.43% Mainly due to decrease in sales revenue affected by COVID-19
Net cash flow from operating
activities 252437074 656726875 -61.56% Mainly due to decrease in sales revenue affected by COVID-19
Sub-total of cash inflows of
investment activities 82752204 175995217 -52.98%
Mainly due to decrease in cash received from return of fixed
deposit
Cash paid to acquire fixed
assets intangible asset and
other long-term assets
100318579 201434544 -50.20% Mainly due to decrease in cash invested in new project andcontinued project
Cash paid to acquire fixed
deposit 58200000 113718193 -48.82% Mainly due to decrease in fixed deposit
2. Analysis explanation of the major issue’s progress as well as its influence and solution
? Available ? Not available
Implementation progress of share repurchases
? Available ? Not available
Implementation progress of reducing repurchased shares by the way of centralized competitive bidding
? Available ? Not available
3. The commitments that the Company’s actual controllers shareholders related parties purchasers the Company and other related
parties do not implement completely exceeding the time limit within the report period
? Available ? Not available
Commitments CommitmentParty
Commitment
Type Commitment content
Commitment
time
Commitment
period Implementation
Commitments at share reform
Commitments made in
acquisition report or equity
changes report
Commitments at asset
restructuring
Commitments at the initial
public offering or refinancing
Yantai Changyu
Group Co. Ltd.Solve horizontal
competition Non-horizontal competition 1997.05.18 Permanent
Has been fulfilling
the commitment
Yantai Changyu
Group Co. Ltd.
Define the use
of trademark
use fee
According to Trademark
License Contract the annual
trademark use fee of trademarks
including “张裕” (Changyu)
paid by the Company to Yantai
Changyu Group Co. Ltd.
should be mainly used by
Yantai Changyu Group Co.Ltd. to publicize trademarks
including “张裕” (Changyu)
and contractual products.
1997.05.18
1997.05.18
to
2019.04.04
According to
Trademark License
Contract the
annual trademark
use fee charged by
Yantai Changyu
Group Co. Ltd.should be mainly
used to publicize
trademarks
including “张裕”
(Changyu) and
contractual
products. Except
the period from
2013 to 2017 when
Yantai Changyu
Group Co. Ltd.
Didn’t strictly
fulfill the
commitment
Yantai Changyu
Group Co. Ltd. has
been fulfilling the
commitment.
Equity incentive commitments
Commitments made to the
minority shareholders of the
Company
Yantai Changyu
Group Co. Ltd.
Compensating
unfulfilled
commitment
The CNY231768615 that was
not used for publicity of
trademarks and contract
products as promised will be
offset by the four-year
trademark use fee from 2019 to
2022. If insufficient the
shortfall would be filled in one
time in 2023. If there is any
excess the excess portion of the
trademark use fee would be
collected from the year with
excess occurrence.
2019.04.04
2019.04.04
to
2023.12.31
Has been fulfilling
the commitment
Commitment under timely implementation or not No
For commitments that exceed the time limit and
are not completed specific reasons of not
completing the implementation and the next step
According to Trademark License Contract (hereafter referred to as “this Contract”) Changyu Group
promised that the annual trademark use fee paid by the Company to Changyu Group would be
mainly used by Changyu Group to publicize these trademarks and contractual products. However
the above-mentioned “mainly” is not a specific number. During the implementation process due to
inconsistent understanding it is easy to cause divergence and leads to problems.
From 2013 to 2017 Changyu Group collected a total of CNY420883902 trademark use fee of
which 51% was used to publicize trademarks including Changyu and contract products with amount
of CNY214650790. The amount has been used to publicize trademarks including Changyu and
contract products is CNY50025181 with a balance of CNY164625609.
In 2018 and 2019 the trademark use fee collected of 2017 and 2018 is CNY155623907 of which
51% is used to publicize trademarks including Changyu and contract products with amount of
CNY79368193. The amount has been used to publicize trademarks including Changyu and
contract products is CNY12225187 with a balance of CNY67143006.Since 2013 the accumulated balance of Changyu Group using to publicize trademarks including
Changyu and contract products is CNY231768615.
If Changyu Group is not able to implement the above-mentioned commitment owing to various
reasons the Company will timely supervise and urge Changyu Group to fulfill its commitment and
request Changyu Group to raise funds through bank loaning assets sales and equity sales etc. in
order to implement the commitment.
For detailed information please refer to Announcement of Commitment Issues of Yantai Changyu
Group Co. Ltd. disclosed on April 4th 2019.
4. Financial assets investment
1) The situation of security investment
? Available ? Not available
There is no security investment during the report period.
2) The situation of derivative investment
? Available ? Not available
There is no derivative investment during the report period.
5. Progress of fund-raising investment project
? Available ? Not available
6. Prediction for 2020 annual business performance
Warning and cause explanation for the prediction that the cumulative net profit from the beginning
of the year to the end of the next report period might be a loss or might occur a significant change
compared with the same period of last year
? Available ? Not available
7. Major contracts during daily operations
? Available ? Not available
8. Entrusted financial management
? Available ? Not available
There is no entrusted financial management during the report period.
9. The situation of illegal external guarantee
? Available ? Not available
There is no illegal external guarantee during the report period.
10. The situation of non-operating fund occupation of controlling shareholders and related
parties
? Available ? Not available
There is no non-operating fund occupation of controlling shareholders and related parties during the
report period.
11. The activity registration form of receptions communication and interview etc. during the
report period
? Available ? Not available
There is no reception communication or interview etc. during the report period.
Ⅳ. Financial Statements
1. Financial statements
1) Consolidated balance sheet
Yantai Changyu Pioneer Wine Co. Ltd. Unit: CNY
Item September 30th 2020 December 31st 2019
Current Assets:
Monetary fund 1203006675 1597410774
Petty cash
Lending funds
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable 163837210 265693603
Receivables Financing 247698065 317270229
Accounts prepaid 22130403 67840190
Premiums receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 65496611 24380907
Including: Interest receivable 634668 148927
Dividends receivable
Buying back the sale of financial assets
Inventory 2936748059 2903817750
Contract assets
Assets classified as holding for sale
Non-current assets expire in one year
Other current assets 259694494 269931887
Total Current Assets 4898611517 5446345340
Non-current Assets:
Offering loans and imprest
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 42725025 43981130
Investment in other equity instrument
Other non-current financial assets
Real estate for investment 27333702 29714586
Fixed assets 5759324713 5943969100
Construction in progress 672423746 567478833
Biological assets for production 193294233 202425286
Oil and gas assets
Right-of-use assets
Intangible assets 645257046 652543848
Development expenditure
Goodwill 141859193 141859193
Long-term deferred expenses 270342238 280478194
Deferred tax assets 218464419 264768008
Other non-current assets 179882024 193674320
Total Non-Current Assets 8150906339 8320892498
Total Assets 13049517856 13767237838
Current liabilities:
Short-term loan 687389648 754313744
Borrowings from the Central Bank
Borrowing funds
Transactional financial liability
Derivative financial liabilities
Notes payable
Accounts payable 422825916 570506459
Advances from customers 131429639
Contract liabilities 134944827
Sales/buyback financial assets
Customer and interbank deposits
Acting trading securities
Acting underwriting securities
Wage payable 153025619 235555474
Tax payable 179804765 375582368
Other accounts payable 400730391 463433185
Including: Interest payable 2370128 758047
Dividend payable 6252201 1366559
Payable handling fees and commission
Dividend payable for reinsurance
Liabilities classified as holding for sale
Non-current liabilities expire in one year 153726948 150826221
Other current liabilities 17542827
Total Current Liabilities 2149990941 2681647090
Non-Current Liabilities:
Insurance contract reserve
Long-term borrowings 203994136 128892501
Bonds payable
Including: Preferred Stock
Perpetual capital securities
Lease liability
Long-term accounts payable 166977000 191000000
Long-term accrued payroll
Estimated liabilities
Deferred income 58783709 70701288
Deferred tax liabilities 13430542 14691424
Other non-current liabilities 7645777 7645777
Total non-current liabilities 450831164 412930990
Total liabilities 2600822105 3094578080
Owner’s equity (or shareholders’ equity):
Capital stock 685464000 685464000
Other equity instruments
Including: Preferred Stock
Perpetual capital securities
Capital reserve 531802207 642775360
Minus: treasury stock
Other comprehensive income -6867531 -4235583
Special reserves
Surplus reserve 342732000 342732000
General risk preparation
Undistributed profits 8645814361 8734335311
Total owner's equity attributable to the holding
company 10198945037 10401071088
Minority interests 249750714 271588670
Total owner's equity 10448695751 10672659758
Total liabilities and owner's equity 13049517856 13767237838
Legal representative: Zhou Hongjiang; Person in charge of accounting : Jiang Jianxun; Person in
charge of accounting organ: Guo Cuimei
2) Balance sheet of parent company
Unit: CNY
Item September 30th 2020 December 31st 2019
Current Assets:
Monetary fund 283795444 710505269
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable 1076952 1988326
Receivables Financing 24736524 41679635
Accounts prepaid 2867357 776539
Other receivables 273989436 586424958
Including: Interest receivable 290661 90355
Dividends receivable 2985375 200000000
Inventory 492785866 434007808
Contract assets
Assets classified as holding for sale
Non-current assets expire in one year
Other current assets 34002542 39130466
Total Current Assets 1113254121 1814513001
Non-current Assets:
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 7571920448 7432422621
Investment in other equity instrument
Other non-current financial assets
Real estate for investment 29714586 29714586
Fixed assets 242616583 261137072
Construction in progress 1578127
Biological assets for production 115250024 121414096
Oil and gas assets
Right-of-use assets
Intangible assets 63080549 64864913
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 17404533 16255870
Other non-current assets 1534700000 1427700000
Total Non-Current Assets 9576264850 9353509158
Total Assets 10689518971 11168022159
Current liabilities:
Short-term loan 150000000 150000000
Transactional financial liability
Derivative financial liabilities
Notes payable
Accounts payable 30321882 63655240
Advances from customers
Contract liabilities
Wage payable 58238348 70445847
Tax payable 7610188 6052456
Other accounts payable 601714603 660149563
Including: Interest payable 137671 181250
Dividend payable
Liabilities classified as holding for sale
Non-current liabilities expire in one year
Other current liabilities
Total Current Liabilities 847885021 950303106
Non-Current Liabilities:
Long-term borrowings
Bonds payable
Including: Preferred Stock
Perpetual capital securities
Lease liability
Long-term accounts payable
Long-term accrued payroll
Estimated liabilities
Deferred income 7101526 9176315
Deferred tax liabilities
Other non-current liabilities 3146706 3146707
Total non-current liabilities 10248232 12323022
Total liabilities 858133253 962626128
Owner’s equity (or shareholders’ equity):
Capital stock 685464000 685464000
Other equity instruments
Including: Preferred Stock
Perpetual capital securities
Capital reserve 559208768 557222454
Minus: treasury stock
Other comprehensive income
Special reserves
Surplus reserve 342732000 342732000
Undistributed profits 8243980950 8619977577
Total owner's equity 9831385718 10205396031
Total liabilities and owner's equity 10689518971 11168022159
3) Consolidated profit statement in this report period
Unit: CNY
Item Amount in this reportperiod
Amount in prior
report period
1. Revenue 774191143 980743772
Including: Operating income 774191143 980743772
Interest income
Earned premium
Handling fees and commission income
2. Total operating costs 674063423 805641704
Including: Operating costs 375604374 344875471
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of insurance contract reserve
fund withdrawal
Policy bonus payment
Amortized reinsurance expenditures
Taxes and surcharges 47921208 62399991
Selling expenses 168492290 324667610
Administrative expenses 77883831 63818231
Research and development expenditure 869269 1149179
Financial expenses 3292451 8731222
Including: Interest expenses 10174541 9525615
Interest income 3760898 5613745
Plus:Other income 15671759 4809425
Investment profit (loss is listed with "-") -85420 -128956
Including: Investment profit for joint-run
business and joint venture -85420 -959797
Termination of recognized income of
financial assets measured at amortized cost
Exchange income (loss is listed with "-")
Net exposure hedging income (Loss is listed with
“-”)
Fair value charge profit (loss is listed with "-")
Loss of credit impairment(loss is listed with "-") 3024194 -2284006
Loss for impairment of assets(loss is listed with "-
") 1474952 -3590639
Assets disposal income (loss is listed with "-") -1163931 -167802
3. Operating profit (loss is listed with "-") 119049274 173740090
Plus: Non-operating income 932994 2705357
Minus: Non-operating expenditure 46725 730796
4. Total profits (total loss is listed with "-") 119935543 175714651
Minus: Income taxes 33798402 45230193
5. Net profit (net loss is listed with "-") 86137141 130484458
(一)Classification by continuous operation
1.Net profit from continuous operation(net loss is listed
with "-")
2.Net profit from terminational operation(net loss is listed
with "-")
(二)Classification by ownership
1.Net profits attribute to equity holders of the company 85120851 130147686
2. Minority interests 1016290 336772
6. Net value of other comprehensive income after tax 3475361 -16794085
6.1 Net value of other comprehensive income after tax of
holding company's owners 2374705 -16794085
6.1.1 Other comprehensive income that will not be
classified into the profit and loss
6.1.1.1 Changes of the defined benefit plans that re-
measured
6.1.1.2 Other comprehensive income under equity method
that cannot be transfer to gain/loss
6.1.1.3 Change of fair value of investment in other equity
instrument
6.1.1.4 Fair value change of enterprise's credit risk
6.1.1.5 Other
6.1.2 Other comprehensive income that will be
classified into the profit and loss 2374705 -16794085
6.1.2.1 Other comprehensive income under equity method
that can transfer to gain/loss
6.1.2.2 Change of fair value of other debt investment
6.1.2.3 Amount of financial assets re-classify to other
comprehensive income
6.1.2.4 Credit impairment provision for other debt
investment
6.1.2.5 Cash flow hedging reserve
6.1.2.6 Translation differences arising on translation of
foreign currency financial statements 2374705 -16794085
6.1.2.7 Other
6.2 Net value of other comprehensive income after tax
of minority shareholders 1100656
7.Total comprehensive Income 89612502 113690373
Total comprehensive income of holding company 87495556 113353601
Total comprehensive income of minority shareholders 2116946 336772
8. Earnings per share
8.1 Basic earnings per share 0.12 0.19
8.2 Diluted earnings per share 0.12 0.19
During this report period the issue relates to company consolidation under common control
consolidated party completes net profit amount of CNY924213 before being consolidated and
consolidated party completes net profit amount of CNY4885903 in the same period of last year.Legal representative: Zhou Hongjiang; Person in charge of accounting: Jiang Jianxun; Person in
charge of accounting organ: Guo Cuimei
4) Profit statement of parent company in this report period
Unit: CNY
Item Amount in thisreport period
Amount in prior
report period
1. Revenue 105418687 200488769
Minus: Operating costs 87036926 184071670
Taxes and surcharges 4744353 10446607
Selling expenses
Administrative expenses 14936063 16494204
Research and development expenditure 175365 206023
Financial expenses -1086829 -547440
Including: Interest expenses 2108757 2190828
Interest income 2792562 3602659
Plus:Other income 858264 858264
Investment profit (loss is listed with "-") 32523818 55000000
Including: Investment profit for joint-run business and
joint venture
Termination of recognized income of financial
assets measured at amortized cost (loss is listed with "-")
Net exposure hedging income (Loss is listed with “-”)
Fair value charge profit (loss is listed with "-")
Loss of credit impairment (loss is listed with "-")
Loss for impairment of assets (loss is listed with "-")
Assets disposal income (loss is listed with "-") 21901
2. Operating profit (loss is listed with "-") 32989823 45697870
Plus: Non-operating income 51398 122208
Minus: Non-operating expenses 748159
3. Total profits (total loss is listed with "-") 33041221 45071919
Minus: Income tax 160153 -181802
4. Net profit (net loss is listed with "-") 32881068 45253721
1.Net profit from continuous operation (net loss is listed with "-") 32881068 45253721
2.Net profit from terminational operation (net loss is listed with "-
")
5. Net value of other comprehensive income after tax
5.1 Other comprehensive income that will not be classified into
the profit and loss
5.1.1 Remeasure the changes in net assets or liabilities of defined
benefit plans
5.1.2 Shares of other comprehensive income from investee which
cannot be reclassified into profit and loss under the equity method
5.1.3 Change of fair value of investment in other equity instrument
5.1.4 Fair value change of enterprise's credit risk
5.1.5 Other
5.2 Other comprehensive income that will be classified into the
profit and loss
5.2.1 Other comprehensive income under equity method that can
transfer to gain/loss
5.2.2 Change of fair value of other debt investment
5.2.3 Amount of financial assets re-classify to other
comprehensive income
5.2.4 Credit impairment provision for other debt investment
5.2.5 Cash flow hedging reserve
5.2.6 Translation differences arising on translation of foreign
currency financial statements
5.2.7 Other
6. Total comprehensive income 32881068 45253721
7. Earnings per share
7.1 Basic earnings per share 0.05 0.07
7.2 Diluted earnings per share 0.05 0.07
5) Consolidated profit statement from the beginning of the year to the end of the report
period
Unit: CNY
Item Amount in thisreport period
Amount in prior
report period
1. Revenue 2192739690 3553926816
Including: Operating income 2192739690 3553926816
Interest income
Earned premium
Handling fees and commission income
2. Total operating costs 1717091047 2629345172
Including: Operating costs 950246786 1269673410
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of insurance contract reserve
fund withdrawal
Policy bonus payment
Amortized reinsurance expenditures
Taxes and surcharges 136365030 186796533
Selling expenses 421620422 932125012
Administrative expenses 190953700 219370543
Research and development expenditure 2675257 3855990
Financial expenses 15229852 17523684
Including: Interest expenses 25065852 19338175
Interest income 9907308 10250903
Plus:Other income 66451990 69021317
Investment profit (loss is listed with "-") -1256105 -128956
Including: Investment profit for joint-run business and
joint venture -1256105 -959797
Termination of recognized income of financial
assets measured at amortized cost (loss is listed with "-")
Exchange income (loss is listed with "-")
Net exposure hedging income (Loss is listed with “-”)
Fair value charge profit (loss is listed with "-")
Loss of credit impairment(loss is listed with "-") 3125029 -2183171
Loss for impairment of assets(loss is listed with "-") 5083785 1691320
Assets disposal income (loss is listed with "-") -1139783 -166664
3. Operating profit (loss is listed with "-") 547913559 992815490
Plus: Non-operating income 7619514 6340525
Minus: Non-operating expenditure 1073199 902287
4. Total profits (total loss is listed with "-") 554459874 998253728
Minus: Income taxes 147252351 257857213
5. Net profit (net loss is listed with "-") 407207523 740396515
(一)Classification by continuous operation
1.Net profit from continuous operation(net loss is listed with "-")
2.Net profit from terminational operation(net loss is listed with "-")
(二)Classification by ownership
1.Net profits attribute to equity holders of the company 403760926 740898517
2. Minority interests 3446597 -502002
6. Net value of other comprehensive income after tax -2290461 -21451376
6.1 Net value of other comprehensive income after tax of holding
company's owners -2631948 -19854806
6.1.1 Other comprehensive income that will not be
classified into the profit and loss
6.1.1.1 Changes of the defined benefit plans that re-measured
6.1.1.2 Other comprehensive income under equity method that
cannot be transfer to gain/loss
6.1.1.3 Change of fair value of investment in other equity
instrument
6.1.1.4 Fair value change of enterprise's credit risk
6.1.1.5 Other
6.1.2 Other comprehensive income that will be
classified into the profit and loss -2631948 -19854806
6.1.2.1 Other comprehensive income under equity method that can
transfer to gain/loss
6.1.2.2 Change of fair value of other debt investment
6.1.2.3 Amount of financial assets re-classify to other
comprehensive income
6.1.2.4 Credit impairment provision for other debt investment
6.1.2.5 Cash flow hedging reserve
6.1.2.6 Translation differences arising on translation of foreign
currency financial statements -2631948 -19854806
6.1.2.7 Other
6.2 Net value of other comprehensive income after tax
of minority shareholders 341487 -1596570
7.Total comprehensive Income 404917062 718945139
Total comprehensive income of holding company 401128978 721043711
Total comprehensive income of minority shareholders 3788084 -2098572
8. Earnings per share
8.1 Basic earnings per share 0.59 1.08
8.2 Diluted earnings per share 0.59 1.08
During this report period the issue relates to company consolidation under common control
consolidated party completes net profit amount of CNY12943426 before being consolidated and
consolidated party completes net profit amount of CNY12619645 in the same period of last year.Legal representative: Zhou Hongjiang; Person in charge of accounting: Jiang Jianxun; Person in
charge of accounting organ: Guo Cuimei
6) Profit statement of parent company from the beginning of the year to the end of the report
period
Unit: CNY
Item Amount in thisreport period
Amount in prior
report period
1. Revenue 258369202 552839771
Minus: Operating costs 230278120 493642250
Taxes and surcharges 9123718 23586763
Selling expenses
Administrative expenses 45086374 55928450
Research and development expenditure 494283 611084
Financial expenses -152052 -4204810
Including: Interest expenses 4916507 -514245
Interest income 5043797 5073326
Plus: Other income 2678154 2574791
Investment profit (loss is listed with "-") 119998422 319221755
Including: Investment profit for joint-run business and
joint venture
Termination of recognized income of financial
assets measured at amortized cost (loss is listed with "-")
Net exposure hedging income (Loss is listed with “-”)
Fair value charge profit (loss is listed with "-")
Loss of credit impairment (loss is listed with "-")
Loss for impairment of assets (loss is listed with "-")
Assets disposal income (loss is listed with "-") 21901
2. Operating profit (loss is listed with "-") 96809899 305094481
Plus: Non-operating income 2058634 825767
Minus: Non-operating expenses 525000 845797
3. Total profits (total loss is listed with "-") 98343533 305074451
Minus: Income tax -5484640 -908748
4. Net profit (net loss is listed with "-") 103828173 305983199
1.Net profit from continuous operation (net loss is listed with "-") 103828173 305983199
2.Net profit from terminational operation (net loss is listed with "-
")
5. Net value of other comprehensive income after tax
5.1 Other comprehensive income that will not be
classified into the profit and loss
5.1.1 Remeasure the changes in net assets or liabilities
of defined benefit plans
5.1.2 Shares of other comprehensive income from
investee which cannot be reclassified into profit
and loss under the equity method
5.1.3 Change of fair value of investment in other equity instrument
5.1.4 Fair value change of enterprise's credit risk
5.1.5 Other
5.2 Other comprehensive income that will be classified
into the profit and loss
5.2.1 Other comprehensive income under equity method that can
transfer to gain/loss
5.2.2 Change of fair value of other debt investment
5.2.3 Amount of financial assets re-classify to other
comprehensive income
5.2.4 Credit impairment provision for other debt investment
5.2.5 Cash flow hedging reserve
5.2.6 Translation differences arising on translation of foreign
currency financial statements
5.2.7 Other
6. Total comprehensive income 103828173 305983199
7. Earnings per share
7.1 Basic earnings per share 0.15 0.45
7.2 Diluted earnings per share 0.15 0.45
7) Consolidated cash flow statement from the beginning of the year to the end of the report
period
Unit: CNY
Item Amount in this reportperiod
Amount in prior report
period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of
services 2310331855 3404022629
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 of deposit of insured and investment
fund
Net increase in disposing of financial assets that
measured by fair value with changes recorded into the
current profit and loss
Cash received from collecting interest handling
fees and commission
Net increase in borrowings
Net increase in repurchasement business funds
Tax refund received 33733604 29762041
Other cash received related to operating activities 69259710 85647005
Sub-total of cash inflows of operating activities 2413325169 3519431675
Cash paid for goods and services 855818928 1207473323
Net increase in customer loans and advances
Net increase in deposits in central bank and
interbank deposits
Cash paid to original insurance contract payments
Cash paid to interest handling fees and commission
Cash paid to policy bonus
Cash paid to and on behalf of employees 325519463 385086539
Cash paid for taxes and expenses 605846671 685034497
Other cash paid related to operating activities 373703033 585110441
Sub-total of cash outflows of operating activities 2160888095 2862704800
Net cash flow from operating activities 252437074 656726875
2. Cash flow from investing activities:
Cash received from return of investment
Cash received from return of fixed deposit 80128600 174597650
Cash received from obtaining investment profit
Cash received from interest income 1484244 1199968
Cash received from disposal of fixed assets
intangible assets and other long-term assets 1139360 197599
Net cash received from disposal of branch and other
business unit
Other cash received related to investing activities
Sub-total of cash inflows of investment activities 82752204 175995217
Cash paid to acquire fixed assets intangible asset
and other long-term assets 100318579 201434544
Cash for investments 401647
Cash paid to acquire fixed deposit 58200000 113718193
Net increase in hypothecated loan
Net cash paid to acquire branch and other business
unit
Other cash paid related to investment activities 170752
Subtotal of cash outflows of investment activities 158518579 315725136
Net cash flow from investing activities -75766375 -139729919
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 784217057 684581027
Other cash received related to financing activities
Sub-total cash inflows of financing activities 784217057 684581027
Cash paid to repay debts 775223291 697660583
Cash paid to distribute dividend profit or pay
interest 514217826 446242354
Including: Dividend and profit paid to minority
shareholders by branch 2932523
Other cash paid related to financing activities 44025637
Sub-total of cash outflows of financing activities 1333466754 1143902937
Net cash flow from financing activities -549249697 -459321910
4. Influences of exchange rate fluctuation on cash and
cash equivalents -301828 -308084
5. Net Increase of cash and cash equivalents -372880826 57366962
Plus: balance at the beginning of the period of cash
and cash equivalents 1397399469 1236286115
6. Balance at the end of the period of cash and cash
equivalents 1024518643 1293653077
8) Cash flow statement of parent company from the beginning of the year to the end of the
report period
Unit: CNY
Item Amount in this reportperiod
Amount in prior report
period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of
services 240400432 442359311
Tax refund received
Other cash received related to operating activities 19575796 44030652
Sub-total of cash inflows of operating activities 259976228 486389963
Cash paid for goods and services 171128867 332017753
Cash paid to and on behalf of employees 46232646 57697044
Cash paid for taxes and expenses 4938030 34602597
Other cash paid related to operating activities 153027196 236084524
Sub-total of cash outflows of operating activities 375326739 660401918
Net cash flow from operating activities -115350511 -174011955
2. Cash flow from investing activities:
Cash received from return of investment
Cash received from return of fixed deposit 35200000 110000000
Cash received from obtaining investment profit 319744088 815117830
Cash received from interest income 493434 715111
Cash received from disposal of fixed assets
intangible assets and other long-term assets 83699 29815
Net cash received from disposal of branch and other
business unit
Other cash received related to investing activities
Sub-total of cash inflows of investment activities 355521221 925862756
Cash paid to acquire fixed assets intangible asset
and other long-term assets 2411971 14223638
Cash for investments 47991725 265479443
Cash paid to acquire fixed deposit 38200000 105238750
Net cash paid to acquire branch and other business
unit
Other cash paid related to investment activities 97000000
Subtotal of cash outflows of investment activities 185603696 384941831
Net cash flow from investing activities 169917525 540920925
3. Cash flow from financing activities
Cash received from acquiring investment
Cash received from acquiring loans 150000000
Other cash received related to financing activities
Sub-total cash inflows of financing activities 150000000
Cash paid to repay debts 150000000
Cash paid to distribute dividend profit or pay
interest 484681932 416717150
Other cash paid related to financing activities
Sub-total of cash outflows of financing activities 634681932 416717150
Net cash flow from financing activities -484681932 -416717150
4. Influences of exchange rate fluctuation on cash
and cash equivalents
5. Net Increase of cash and cash equivalents -430114918 -49808180
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 193001624 482576702
2. Explanation for adjustment in financial statements
1) The situation of adjusting related items in financial statements at the beginning of 2020
owing to the first implementation of new Revenue Standards and new Lease Standards since
2020
?Available ?Not available
Whether needs to adjust the balance sheet account at the beginning of the year
?Yes ?No
Consolidated balance sheet
Unit: CNY
Item December 31st 2019 January 1st 2020 Adjustedamount
Current Assets:
Monetary fund 1597410774 1597410774
Petty cash
Lending funds
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable 265693603 265693603
Receivables Financing 317270229 317270229
Accounts prepaid 67840190 67840190
Premiums receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 24380907 24380907
Including: Interest receivable 148927 148927
Dividends receivable
Buying back the sale of financial assets
Inventory 2903817750 2903817750
Contract assets
Assets classified as holding for sale
Non-current assets expire in one year
Other current assets 269931887 269931887
Total Current Assets 5446345340 5446345340
Non-current Assets:
Offering loans and imprest
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 43981130 43981130
Investment in other equity instrument
Other non-current financial assets
Real estate for investment 29714586 29714586
Fixed assets 5943969100 5943969100
Construction in progress 567478833 567478833
Biological assets for production 202425286 202425286
Oil and gas assets
Right-of-use assets
Intangible assets 652543848 652543848
Development expenditure
Goodwill 141859193 141859193
Long-term deferred expenses 280478194 280478194
Deferred tax assets 264768008 264768008
Other non-current assets 193674320 193674320
Total Non-Current Assets 8320892498 8320892498
Total Assets 13767237838 13767237838
Current liabilities:
Short-term loan 754313744 754313744
Borrowings from the Central Bank
Borrowing funds
Transactional financial liability
Derivative financial liabilities
Notes payable
Accounts payable 570506459 570506459
Advances from customers 131429639 -131429639
Contract liabilities 116309415 116309415
Sales/buyback financial assets
Customer and interbank deposits
Acting trading securities
Acting underwriting securities
Wage payable 235555474 235555474
Tax payable 375582368 375582368 0
Other accounts payable 463433185 463433185
Including: Interest payable 758047 758047
Dividend payable 1366559 1366559
Payable handling fees and commission
Dividend payable for reinsurance
Liabilities classified as holding for sale
Non-current liabilities expire in one year 150826221 150826221
Other current liabilities 15120224 15120224
Total Current Liabilities 2681647090 2681647090 0
Non-Current Liabilities:
Insurance contract reserve
Long-term borrowings 128892501 128892501
Bonds payable
Including: Preferred Stock
Perpetual capital securities
Lease liability
Long-term accounts payable 191000000 191000000
Long-term accrued payroll
Estimated liabilities
Deferred income 70701288 70701288
Deferred tax liabilities 14691424 14691424
Other non-current liabilities 7645777 7645777
Total non-current liabilities 412930990 412930990
Total liabilities 3094578080 3094578080
Owner’s equity (or shareholders’ equity):
Capital stock 685464000 685464000
Other equity instruments
Including: Preferred Stock
Perpetual capital securities
Capital reserve 642775360 642775360
Minus: treasury stock
Other comprehensive income -4235583 -4235583
Special reserves
Surplus reserve 342732000 342732000
General risk preparation
Undistributed profits 8734335311 8734335311
Total owner's equity attributable to the
holding company 10401071088 10401071088
Minority interests 271588670 271588670
Total owner's equity 10672659758 10672659758
Total liabilities and owner's equity 13767237838 13767237838
Explanation for adjustment
Balance sheet of parent company
Unit: CNY
Item December 31st 2019 January 1st 2020 Adjustedamount
Current Assets:
Monetary fund 710505269 710505269
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable 1988326 1988326
Receivables Financing 41679635 41679635
Accounts prepaid 776539 776539
Other receivables 586424958 586424958
Including: Interest receivable 90355 90355
Dividends receivable 200000000 200000000
Inventory 434007808 434007808
Contract assets
Assets classified as holding for sale
Non-current assets expire in one year
Other current assets 39130466 39130466
Total Current Assets 1814513001 1814513001
Non-current Assets:
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 7432422621 7432422621
Investment in other equity instrument
Other non-current financial assets
Real estate for investment 29714586 29714586
Fixed assets 261137072 261137072
Construction in progress
Biological assets for production 121414096 121414096
Oil and gas assets
Right-of-use assets
Intangible assets 64864913 64864913
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 16255870 16255870
Other non-current assets 1427700000 1427700000
Total Non-Current Assets 9353509158 9353509158
Total Assets 11168022159 11168022159
Current liabilities:
Short-term loan 150000000 150000000
Transactional financial liability
Derivative financial liabilities
Notes payable
Accounts payable 63655240 63655240
Advances from customers
Contract liabilities
Wage payable 70445847 70445847
Tax payable 6052456 6052456
Other accounts payable 660149563 660149563
Including: Interest payable 181250 181250
Dividend payable
Liabilities classified as holding for sale
Non-current liabilities expire in one year
Other current liabilities
Total Current Liabilities 950303106 950303106
Non-Current Liabilities:
Long-term borrowings
Bonds payable
Including: Preferred Stock
Perpetual capital securities
Lease liability
Long-term accounts payable
Long-term accrued payroll
Estimated liabilities
Deferred income 9176315 9176315
Deferred tax liabilities
Other non-current liabilities 3146707 3146707
Total non-current liabilities 12323022 12323022
Total liabilities 962626128 962626128
Owner’s equity (or shareholders’ equity):
Capital stock 685464000 685464000
Other equity instruments
Including: Preferred Stock
Perpetual capital securities
Capital reserve 557222454 557222454
Minus: treasury stock
Other comprehensive income
Special reserves
Surplus reserve 342732000 342732000
Undistributed profits 8619977577 8619977577
Total owner's equity 10205396031 10205396031
Total liabilities and owner's equity 11168022159 11168022159
Explanation for adjustment
2) Explanation for retroactive adjustment in comparable data in prior report period owing to
the implementation of new Revenue Standards and new Lease Standards since 2020
?Available ?Not available
During the report period the Company implemented the new Revenue Standards and retroactively
adjusted the previous comparative data according to the Standardsresulting in a decrease of CNY
131429639 in the advance receipts at the beginning of the period an increase of CNY 116309415
in the contract liabilities and an increase of CNY 15120224 in other current liabilities.
3. Audit report
Whether the third quarter report has been audited.?Yes ?No
The third quarter report has not been audited.Yantai Changyu Pioneer Wine Co. Ltd.
Board of Directors
October24th 2020