Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Yantai Changyu PioneerWine Co. Ltd.2025 Semi-annual Report
Final 2025-03
August 28 2025
1Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
I. Important Notice Table of Contents and Definition
The board of directors，the board of supervisors，directors supervisors and senior executivesof the Company guarantee the truthfulness accuracy and completeness of the contents
contained in the semi-annual report with no false records misleading statements or
significant omissions and undertake individual and joint legal liabilities.Mr. Hongjiang ZHOU (Person in charge of the Company) and Ms. Cuimei GUO (Person in
charge of accounting work Person in charge of accounting organ & Accountant in charge)
assure the truthfulness accuracy and completeness of the financial report in the semi-annual
report.All directors attended this board meeting for reviewing this semi-annual report in person.Forward-looking statements such as future plans and development strategies covered in this
report do not constitute a substantial commitment of the Company to investors. Investors are
advised to pay attention to investment risks.Regarding significant risks that the Company may face during the business process please
refer to “10. Risks and response measures” in “III Discussion and Analysis of ManagementTeam” in this report. Investors are suggested to read carefully and pay attention to investment
risks.The Company has no plan to distribute cash dividends and bonus shares and capital reserve
will not be transferred to equity.
2Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Table of Contents
I、Important Notice Table of Contents and Definitio....2
II、Brief Introduction for the Company and Main Fin....6
III、Discussion and Analysis of Management Team ...... 9
IV、Corporate Governance Environmental and Social R.. 29
V、 Major issues .................................... 31
VI、 Changes in Shares and the Shareholders’ Situat...39
VII、 Related Situation of Bonds .....................46
VIII、Financial Report ...............................46
IX、Other Submitted Data ............................168
3Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Reference Documents
(1) The original of 2025 Semi-annual Report autographed by the Chairman.
(2) The Financial Statements autographed and sealed by the chairman chief accountant and
accountants in charge.
(3) The Prospectus and Public Offering Announcement for Stock B in 1997; The Prospectus
and The Shares’Change & Public Offering Announcement for Stock A in 2000.
(4) The originals of all documents and announcements that the Company made public during
the report period in the newspapers designated by China Securities Regulatory Commission.
4Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Definition
Definition Item Refers to Definition Content
Company/The Company Refers to Yantai Changyu Pioneer Wine Co. Ltd.Changyu Group/Controlling Shareholder Refers to Yantai Changyu Group Co. Ltd.CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
KPMG Huazhen Refers to KPMG Huazhen LLP (Limited Liability Partnership)
CNY Refers to Chinese Yuan
5Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
II. Brief Introduction for the Company and Main Financial Indicators
1. Company’s information
Stock Abbreviation Changyu A Changyu B Stock Code 000869，200869
Stock Abbreviation after Alteration None
Place of Stock Listing Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese Name 张裕
Legal Name in English YANTAI CHANGYU PIONEERWINE COMPANY LIMITED
Abbreviation of English Name CHANGYU
Legal Representative Hongjiang ZHOU
2. Contact person and information
Secretary of the Board of Directors Authorized Representative of Securities Affairs
Name Jianxun JIANG Tingguo LI
Address 56 Dama Road Yantai Shandong China 56 Dama Road Yantai Shandong China
Tel. 0086-535-6602761 0086-535-6633656
Fax. 0086-535-6633639 0086-535-6633639
E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn
3. Other information
1) Contact information of the Company
Whether there is any change in the Company’s registered address office address
corresponding postcode website address and email address during the report period
□Applicable □Inapplicable
There is no change in the Company’s registered address office address corresponding
postcode website address and email address during the report period. Please refer to 2024
Annual Report for detailed information.
2) Information disclosure and filing location
Whether there is any change in information disclosure and filing location during the report
period
□Applicable □Inapplicable
There is no change in the name of the newspaper for information disclosure the address of
the website designated by the China Securities Regulatory Commission for publishing the
semi-annual report and the filing location of the Company’s semi-annual report selected by
the Company during the report period. Please refer to 2024 Annual Report for detailed
information.
6Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
3) Other relevant information
Whether there is any change in other relevant information during the report period
□Applicable □Inapplicable
4. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of
previous fiscal years.□Yes □No
During the report In the same period More or less than the same
period of last year period of last year (%)
Operating revenue (CNY) 1470576177 1522309436 -3.40%
Net profit attributed to shareholders of the listed
185597142221177382-16.09%
company (CNY)
Net profit attributed to shareholders of the listed
company after deducting non-recurring profits 172159827 194883882 -11.66%
and losses (CNY)
Net cash flows from operating activities (CNY) 239421128 203880364 17.43%
Basic earnings per share (CNY/share) 0.28 0.32 -12.50%
Diluted earnings per share (CNY/share) 0.28 0.32 -12.50%
Weighted average return on equity 1.73% 2.03% -0.30%
At the end of this At the end of last More or less than the end of
report period year last year (%)
Total assets (CNY) 12178908797 12520474218 -2.73%
Net Assets attributed to shareholders of the
1054250885610619208419-0.72%
listed company (CNY)
5. Differences in accounting data under PRC accounting standards and international
accounting standards
1) Differences of net profit and net asset in the financial report disclosed according to
both international accounting standards and PRC accounting standard
□Applicable □Inapplicable
There are no differences for net profit and net assets in the financial report disclosed
according to both international accounting standards and PRC accounting standards during
the report period.
2) Differences of net profit and net asset in the financial report disclosed according to
both foreign accounting standards and PRC accounting standards
□Applicable □Inapplicable
There are no differences of net profit and net asset in the financial report disclosed according
to both foreign accounting standards and PRC accounting standards during the report period.
6. Item and amount of non-recurring gains and losses
7Yantai Changyu Pioneer Wine Co. Ltd. 2023 Semi-annual Report
□Applicable □Inapplicable
Unit：CNY
Item Amount Explanation
Profits and losses on disposal of non-current assets (including the write-off part of the
358876-
provision for asset impairment has been made)
Government grants included in the current profits and losses(except for those recurring
government grants that are closely related to the entity’s operation in line with related 19258546 -
regulations and have proper basis of calculation)
Other non-operating income and expenditure besides above-mentioned items 330408 -
Less: Amount affected by income tax 4948531 -
Amount affected by minority equity (after tax) 1561984 -
Total 13437315 -
Specific situation of other gains and losses projects conforming to the definition of
non-recurring profit and loss
□Applicable □Inapplicable
There does not exist specific situation of other profit and loss items conforming to the
definition of non-recurring profit and loss.Explanation for regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company’s Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
□Applicable □Inapplicable
There is no situation regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company’s Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
8Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
III. Discussion and Analysis of Management Team
1. Main businesses during the report period
During the report period the Company’s main business was production and operation of wine
and brandy.The Company need to comply with the disclosure requirements of “Food and LiquorManufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
1) Situation of the industry in which the Company operates
During the report period the Company’s main business was production and operation of wine
and brandy thus providing domestic and foreign consumers with healthy and fashionable
alcoholic drinks. Compared with earlier stage there were no significant changes happened to
the Company’s main business. The wine industry that the Company involved in was still in
growth stage. Being affected by many factors in recent years the competition in domestic
wine market was fierce. However seen from the long term the Company believes that the
existing consumption concept might change with the increase of people’s income level and
their pursuit of a relaxed romantic and healthy lifestyle. More domestic wine would be drunk
by people and wine would enter more and more household consumption. The situation of
current low average consumption of domestic wine would gradually improve. The Company
was at the forefront in the domestic wine market and was significantly ahead of major
domestic competitors.
2) License obtained
Food Food production license
Producer name Obtaining time Obtaining method
category number
Yantai Changyu Pioneer Wine Co. Approval from
Alcohol 2021.06.01 SC11537060100050
Ltd. government authority
Beijing Chateau Changyu AFIP Approval from
Alcohol 2022.08.22 SC11511280920745
Global Co. Ltd. government authority
Liaoning Changyu Golden Icewine Approval from
Alcohol 2021.03.25 SC11521052200370
Valley Co. Ltd. government authority
Ningxia Chateau Changyu Moser Approval from
Alcohol 2018.01.25 SC11564010500657
XV Co. Ltd. government authority
9Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Xinjiang Chateau Changyu Baron Approval from
Alcohol 2017.08.25 SC11565900100392
Balboa Co. Ltd. government authority
Yantai Chateau Changyu-Castel Approval from
Alcohol 2021.06.08 SC11537063600172
Co. Ltd. government authority
Shaanxi Chateau Changyu Rena Approval from
Alcohol 2020.10.19 SC11561040400532
Co. Ltd. government authority
Yantai Chateau Koya Brandy Co. Approval from
Alcohol 2021.01.11 SC11537063601165
Ltd. government authority
3) Explanation for other significant events
During the report period there did not exist the trademark ownership dispute food quality
issue or food safety incident etc. that had a significant impact on the Company.Brand operation
The Company’s products were divided into two series: wine and brandy. For wine main
brands included Changyu Longyu Noble Dragon AFIP Kilikanoon Golden Icewine Valley
Changge Baron Balboa Donelly Long-tailed Cat Grappie Atrio IWCC Vermouth and so
on. For Brandy main brands included Koya Liquan Mminni Pagese Roullet Fransac and so
on.Major sales mode
The Company’s main sales mode was the distribution mode and main sales channel was
offline sales that is the Company’s products were distributed to sales terminals through
approximately 5000 distributors at home and abroad and ultimately provided to consumers.Distribution mode
□Applicable □Inapplicable
* Situation of change in the number of distributors is shown as follows.At the beginning of Increased number during At the end of the
Region
the report period the report period report period
Eastern China 2200 23 2223
South China 576 -11 565
Central China 397 -10 387
North China 334 -12 322
Northwest China 153 -1 152
10Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Southwest China 433 -17 416
Northeast China 288 0 288
HongKong MacaoTaiwan China and overseas 799 90 889
Total 5180 62 5242
* Sales information of the Company’s top 5 distributors during the report periodNo. Customer name Sales amount (CNY） Proportion in total sales（%）
1 Rank 1st 32953234 2.24%
2 Rank 2nd 16456894 1.12%
3 Rank 3rd 14114134 0.96%
4 Rank 4th 11876077 0.81%
5 Rank 5th 11749432 0.80%
Total -- 87149771 5.93%
The ratio of sales in self-owned exclusive shop exceeds 10%
□Applicable □Inapplicable
Sales of online direct sales
□Applicable □Inapplicable
First half of 2025 First half of 2024
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 1167253176 472711388 59.50% 1264253556 497864362 60.62%
Direct sales 303323001 120094870 60.41% 258055880 97884368 62.07%
Total 1470576177 592806258 59.69% 1522309436 595748730 60.87%
The change in sales prices of major products accounting for more than 10% of total operating
income in current report period exceeds 30% compared with those in last report period
□Applicable □Inapplicable
Procurement mode and procurement content
Unit: CNY
Amount of major
Procurement mode Procurement content
procurement contents
Qualitative and price comparison Raw materials including grape/bulk wine 252969412
Invitation for bids / qualitative and price comparison Packaging materials 172904494
Invitation for bids / qualitative and price comparison Brewing materials 5919931
Invitation for bids / qualitative and price comparison Goods and materials for vineyard 351012
11Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Contract Fuel and power 13332941
Qualitative and price comparison Other alcoholic products and derivatives 8533525
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total
procedure amount
□Applicable □Inapplicable
The year-on-year change in the price of major outsourced raw materials exceeds 30%
□Applicable □Inapplicable
Major production mode
The production mode of the Company is self-produce.Commissioned processing and production
□Applicable □Inapplicable
Major components of operating costs
* Classification of sector
Unit: CNY
First half of 2025 First half of 2024 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 267451974 46.89% 266328765 46.35% 0.42%
Packing material 140956522 24.71% 144493097 25.15% -2.45%
Liquor
Wages 15526190 2.72% 17738659 3.09% -12.47%
and
alcoholic Manufacturing 97986705 17.18% 94920089 16.52% 3.23%
beverage expenses
Contract
484833128.50%511100268.90%-5.14%
performance costs
* Classification of product
Unit: CNY
First half of 2025 First half of 2024 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 189873882 46.52% 199534226 46.08% -4.84%
Packing material 100999372 24.75% 106908471 24.69% -5.53%
Wages 11392118 2.79% 14382917 3.32% -20.79%
Wine
Manufacturing
7244174917.75%7445028317.19%-2.70%
expenses
Contract 33426696 8.19% 37735812 8.71% -11.42%
12Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
performance costs
Blending liquor 77578092 47.81% 66794539 47.18% 16.14%
Packing material 39957149 24.62% 37584626 26.55% 6.31%
Wages 4134072 2.55% 3355742 2.37% 23.19%
Brandy Manufacturing
2554495615.74%2046980614.46%24.79%
expenses
Contract
150566169.28%133742149.45%12.58%
performance costs
Yield and inventory
Sector Item Unit First half of 2025 First half of 2024 Year-on-year increase or decrease (%)
Liquor and Sales Ton 33812 35129 -3.75%
alcoholic Yield Ton 27411 34633 -20.85%
beverage Inventory Ton 20451 25585 -20.07%
Sales Ton 23336 26010 -10.28%
Wine Yield Ton 20525 23798 -13.76%
Inventory Ton 13610 14694 -7.38%
Sales Ton 10476 9119 14.88%
Brandy Yield Ton 6886 10835 -36.44%
Inventory Ton 6841 10891 -37.19%
2. Analysis of core competitiveness
Compared with the participants in the arena of the Chinese wine competition sector the
Company owns following advantages:
Firstly the Company has a large brand influence. Main brands used have a long history.“Changyu”“Noble Dragon”and“AFIP”are all “China famous brands” that have strong
influence and good reputation.Secondly the Company has set up a nationwide marketing network. The Company has
formed a “three-level” marketing network system mainly composed of the Company’s
salesmen and distributors and the online sales platform has had a certain scale and strong
influence owing strong marketing ability and market exploitation ability.Thirdly the Company has strong scientific prowess and a product R&D system. Relying on
the country’s “State-level Wine R&D Center” the Company has owned powerful winemaker
team mastered advanced winemaking technology and production processes and had strong
13Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
product innovation capacity and perfect quality control system.Fourthly the Company is in possession of a lot of grape-growing bases that are compatible
with its development requirements. The Company has developed a great deal of vineyards in
the most suitable areas for wine grape growing such as Shandong Ningxia and Xinjiang and
its subsidiary overseas enterprises also own matching grape bases in local area making the
overall scale and structure generally meet the Company’s needs for future development.Fifthly products in high medium and low-grade as well as varieties and categories are all
complete. Over 100 varieties of series products such as wine brandy and sparkling wine
covers various grades including high medium and low-grade which can meet different
consumer groups’ demands. The Company has taken the dominant status in the domestic
wine industry after many years’ development and has comparative advantages in the future
competition.Sixthly the Company has a relatively perfect motivation system. Most of Company’s
employees indirectly hold the Company’s equity through controlling shareholders. There are
high consistency between employee benefits and shareholders benefits in favor of motivating
employees to create value for shareholders.Seventhly the Company has set up flexible and efficient decision-making mechanism. The
Company’s core management team always maintains a working style of unity and pragmatic
and flexible and efficient decision-making mechanism which makes the Company can deal
with market changes more calmly.Eighthly the global production capacity layout has been basically completed. The Company
has completed production capacity layout in China France Chile Spain Australia and other
major wine producing countries in the world enabling making better use of global
high-quality raw material resources capital talents and advanced production processes and
technologies to provide consumers with diversified quality products and better serve
consumers.Based on the above reasons the Company has formed relatively strong core competence and
will maintain a relatively dominant position in the future predictable market competition.
3. Analysis in main business
Summarization
During the report period the domestic wine market still maintained a downward trend.Market demand was seriously insufficient and competition was extremely fierce. The
profitability of wine enterprises further declined. The market share of wine in alcoholic
products became smaller and smaller. Coupled with the squeeze from other advantageous
wine types the development trend of the industry remained at a low level and there were no
obvious signs of a rebound. Facing a severe market environment the Company adhered to a
14Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
market-oriented approach actively engaged in product and marketing innovation and strove
to explore new sales channels and emerging markets achieving certain results.First the Company adhered to a market-oriented approach and strove to enhance product
sales capabilities. During the report period the Company delved deeply into mature markets
and actively expanded into emerging markets; further improved and adjusted the system of
the sales divisions adhered to focusing on products markets and marketing actions and
implemented targeted marketing strategies according to different stages of market
development; had been meticulously cultivating the mature market continuously making
breakthroughs in key markets and focusing on winning the "decisive battle" so as to strive to
achieve new breakthroughs achieving certain results; intensified efforts to combat
counterfeiting and prevent unauthorized distribution maintaining a good market order and
price system and enhancing the enthusiasm of our partners; intensified efforts to build the
sales team and reserve talents strictly assessed and eliminated marketing personnel and kept
introducing high-quality external marketing talents to enhance the combat effectiveness of the
marketing team.Second in response to market demands the Company benchmarked against well-known and
best-selling brands both at home and abroad and continuously promoted product quality
improvement and upgrading as well as the development of new products. During the report
period the overall quality of the Company's products steadily improved and consumer
satisfaction further increased. In response to the new consumption environment the
development of new products such as alcohol-free wine and juice wine had been promoted.The Company’s products have won a total of 65 awards including 13 grand gold awards and
22 gold awards. Changyu Noble Dragon N188 Dry Red 2022 won the top award "Best In
Show" at the Decanter World Wine Awards 2025. The 2019 Huakaifugui Reserve Dry Red
Wine of Chateau Castel won the gold medal at the MUNDUS VINI and was rated as "Best
Show of China". The Chateau Longyu’s Long12 Cabernet Sauvignon Dry Red Wine 2022
Long8 Blended Dry Red Wine 2022 and Cabernet Sauvignon Dry White Wine 2024 all won
the grand gold medal at the FIWAFISA BIO in France as well as the Chateau Baron Balboa’
s X7 Dry Red Wine 2021 and the Chateau Golden Icewine Valley’s Vidal Icewine Black
Diamond Grade 2022. Koya Snake Year Zodiac Limited Edition XXO won the gold medal at
the LSC London Spirits Competition and was awarded the Spirit Of The Year China and
Best Spirit By Package awards. Changyu Riesling R268 Dry White Wine 2024 won the grand
gold medal at the FIWAFISA BIO in France.Third the Company strengthened financial management and audit supervision to prevent
business risks and improve business efficiency. During the report period the Company
strengthened the capital control of its subsidiaries and internal capital adjustment took
multiple measures to save financing costs and increased financial income through methods
such as structured deposits agreement deposits and notice deposits; made full use of tax
preferential policies to reduce tax and fee expenditures; persisted in conducting regular audits
such as the departure audit of managers and the economic benefit audit and strengthened the
audit of key expenses such as advertising expenses of the business divisions; explored
innovations in auditing methods and models and continuously strengthened the quality
15Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
control of auditing enhancing the level of auditing supervision and lowering the operational
risks.Fourth the Company fully utilized its tourism resources such as the wine culture museum
and chateaux intensified the promotion of tourism products continuously improved the
service level and reception capacity for tourists and enhanced its appeal to domestic and
foreign tourists. During the report period the number of tourists attracted by the Company
increased significantly. Not only did it generate tourism business revenue but it enhanced the
Company’s brand awareness and reputation providing a new impetus for promoting the sales
of alcoholic products.Fifth the Company continued to implement B-share repurchases to protect the interests of
investors. As of July 31 2025 the Company had cumulatively repurchased 6.79 million
domestic listed foreign capital shares (B shares) through the dedicated securities account for
share repurchase by means of centralized bidding accounting for 1.01% of the Company's
current total share capital.Based on the implementation of above measures the Company achieved certain results in the
first half of 2025. However both its operating income and net profit declined to varying
degrees. To fully meet the financial budget targets for 2025 and the performance indicators
set by the 2025 restricted share incentive plan the Company is under tremendous pressure.For the sake of achieving its business goals the Company will focus on following tasks in the
second half of 2025:
The first is to further focus on the development of key markets for annihilation battles. For
existing products based on product features and the stage of market development the
Company will implement corresponding marketing strategies strive to achieve new
breakthroughs in sales and steadily expand the existing market. In addition it will also
strengthen the market promotion of new products continuously develop incremental markets
and provide new impetus for sales growth.The second is to strengthen the construction and management of the marketing team. The
Company will strictly enforce team discipline recruit and select outstanding talents to be
assigned to strategic markets and decisive cities enhance employee training and salary
assessment and improve the management in advertising expenses price systems and
cross-selling so as to build a strong sales team.The third is to intensify efforts in new product development strengthen product quality
management and continuously enhance product competitiveness. The Company will further
improve the flavors of products such as Donelly based on market feedback; develop wine
extension products that suit the tastes of young people (fruit juice wine fruit-flavored wine);
develop alcohol-free wines herbal wines (such as polygonatum wine and tea wine) and other
products that meet the needs of specific groups of people; strengthen quality inspection
increase the severity of penalties and continuously improve the appearance quality of
products.The fourth is to do a good job in financial accounting and fund management. The Company
will do well in the relevant financial and tax work such as the repurchase of B shares and the
16Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
return of equity incentive funds. For important matters it will communicate with the auditing
institution in advance actively follow up during the process and review after the event
ensuring compliance and efficiency in accounting auditing and disclosure. It will also
continue to implement the fund control of structured deposits and subsidiaries and branches;
conduct tax planning to reasonably reduce tax and fee expenditures; pay close attention to
international tax policies and do a good job in the final settlement and payment of overseas
income such as dividends interests and property transfers of the parent Company to avoid tax
risks.The fifth is to implement the B-share buy-back in accordance with the B-share buy-back plan
determined by the Company.Year-on-year change in key financial data
Unit: CNY
The same period Year-on-year
This period Cause of significant changes
of last year increase or decrease
Mainly due to the decline in product sales
Operating revenue 1470576177 1522309436 -3.40%
volume
Mainly due to the decline in operating
Operating cost 592806258 595748730 -0.49%
income
Mainly due to the increase in marketing
Sales expense 402150816 391916515 2.61%
expenses
Mainly due to the decline in employee
Management expense 126647959 132945615 -4.74%
compensation
Financial expense -14647932 3223510 -554.41%Mainly due to the increase in exchange gains
Income tax expense 81765775 92758345 -11.85%Mainly due to the decline in operating profit
Mainly due to the increase in research and
R&D expense 9071966 6748675 34.43%
development expenses
Net cash flow generated in
239421128 203880364 17.43%Mainly due to the decline in tax payments
operating activities
Net cash flow generated in Mainly due to the decline in the recovery of
92905302101776789-8.72%
investment activities time deposits
Net cash flow generated in Mainly due to the decline in cash paid for
-272782891-70469234161.29%
financing activities debt repayment
Net increased amount of Mainly due to the increase in net cash flow
61013083 -400166503 Inapplicable
cash and cash equivalents from financing activities
Significant change in the profit form and profit source of the Company during the report
period
17Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
□Applicable □Inapplicable
There is no significant change in the profit form and profit source of the Company during the
report period.Composition of operating revenue
Unit: CNY
This report period The same period of last year Year-on-year
Proportion in Proportion in increase or
Amount Amount
operating revenue operating revenue decrease (%)
Total operating revenue 1470576177 100% 1522309436 100% -3.40%
Sector-classified
Sector of liquor and
1470576177100%1522309436100%-3.40%
alcoholic beverage
Product-classified
Wine 1017390566 69.18% 1105466306 72.62% -7.97%
Brandy 388044327 26.39% 356049751 23.39% 8.99%
Tourism 47631132 3.24% 43588165 2.86% 9.28%
Others 17510152 1.19% 17205214 1.13% 1.77%
Area-classified
Domestic 1213721087 82.53% 1277499221 83.92% -4.99%
Overseas 256855090 17.47% 244810215 16.08% 4.92%
The cases of industry product or area accounting for over 10% in the Company’s operating
revenue or operating profit
□Applicable □Inapplicable
Unit: CNY
Year-on-year Year-on-year Year-on-year
Operating Operating Gross increase or increase or increase or
revenue cost margin decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross margin
Sector-classified
Sector of liquor and
147057617759280625859.69%-3.40%-0.49%-1.18%
alcoholic beverage
Product-classified
Wine 1017390566 408133818 59.88% -7.97% -5.75% -0.95%
Brandy 388044327 162270885 58.18% 8.99% 14.62% -2.06%
Tourism 47631132 13046119 72.61% 9.28% 9.21% 0.02%
Others 17510152 9355436 46.57% 1.77% 1.55% 0.11%
18Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Area-classified
Domestic 1213721087 429985668 64.57% -4.99% -3.49% -0.55%
Abroad 256855090 162820590 36.61% 4.92% 8.41% -2.04%
Under the condition that the statistical caliber of the Company’s main business data is
adjusted during the report period the Company’s main business data adjusted on the basis of
caliber at the end of report period in recent one period.□Available □Not availableThe Company need to comply with the disclosure requirements of “Food and LiquorManufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
1) Detailed information on sales expenses
The same period Proportion of Proportion of Year-on-year
Items This period
of last year this period last period increase or decrease
Labor cost 119403300 126497516 29.69% 32.28% -5.61%
Marketing expenses 130423949 108239032 32.43% 27.62% 20.50%
Cost of services 15252966 14966602 3.79% 3.82% 1.91%
Depreciation expense 30786813 33555237 7.66% 8.56% -8.25%
Storage rental fee 11354031 12833741 2.82% 3.27% -11.53%
Advertising expenses 29798339 27638002 7.41% 7.05% 7.82%
Trademark usage fee 5451141 7858547 1.36% 2.01% -30.63%
Travel expenses 12906974 12764888 3.21% 3.26% 1.11%
Design and production fee 4921771 2757387 1.22% 0.70% 78.49%
Conference fee 3000702 3299438 0.75% 0.84% -9.05%
Water electricity and gas charges 5414402 4438730 1.35% 1.13% 21.98%
Others 33436428 37067395 8.31% 9.46% -9.80%
Total 402150816 391916515 100% 100% 2.61%
4. Analysis in non-main business
□Applicable □Inapplicable
5. Analysis in assets and liabilities
1) Significant change in assets composition
Unit: CNY
At the end of this report period At the end of last year Proportion Explanation
19Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Proportion in Proportion in increase or on significant
Amount the total assets Amount the total assets decrease changes
(%)(%)(%)
No significant
Monetary funds 1839091128 15.10% 1797848130 14.36% 0.74%
changes
No significant
Account receivables 181953878 1.49% 270829601 2.16% -0.67%
changes
Contract assets —
No significant
Inventory 2959823407 24.30% 2904070556 23.19% 1.11%
changes
No significant
Investment real estate 20735590 0.17% 21960451 0.18% -0.01%
changes
No significant
Long-term equity investments 31846660 0.26% 34864748 0.28% -0.02%
changes
No significant
Fixed assets 5436526847 44.64% 5551671795 44.34% 0.30%
changes
No significant
Construction in progress 4182026 0.03% 10177372 0.08% -0.05%
changes
No significant
Right-of-use asset 64049882 0.53% 71761262 0.57% -0.04%
changes
No significant
Short-term borrowings 214934685 1.76% 216140346 1.73% 0.03%
changes
No significant
Contract liability 116410398 0.96% 128090353 1.02% -0.06%
changes
No significant
Long-term borrowings 77915455 0.64% 50637203 0.40% 0.24%
changes
No significant
Lease liability 20943922 0.17% 27542829 0.22% -0.05%
changes
20Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
2) Main overseas assets situation
□Applicable □Inapplicable
Unit：CNY
Formation Operation Control measures for safeguarding of Earning Proportion of overseas assets Whether there are
Details of assets Assets scale Location
reasons mode asset security condition in the Company’s net assets significant impairment risks
The Company participates in making important
Hacienda Y Vinedos Acquisition of Independent
627852843 Spain decisions through Board of Directors and 14486353 5.87% No
Marques Del Atrio. SL equity operation
appoints CFO on financial management.Establishment
Indomita Wine Independent The Company participates in making important
of joint 530995803 Chile 1891672 4.96% No
Company Chile S.p.A. operation decisions through Board of Directors.venture
Kilikanoon Estate Pty. Acquisition of Independent The Company participates in making important
79727016 Australia -2810521 0.75% No
Ltd. equity operation decisions through Board of Directors.Sole The Company participates in making important
Francs Champs Independent
proprietorship 210120662 France decisions through directly appointing senior -4141944 1.96% No
Participations SAS operation
establishment executive.Other information explanation None
3) Assets and liabilities measured at fair value
□Applicable □Inapplicable
4) Limitations of assets rights up to the end of the report period
None
6. Analysis in investment condition
1) Overall situation
21Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
□Applicable □Inapplicable
Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation
2579620130353311-15.01%
2) Cases of acquired significant equity investments during the report period
□Applicable □Inapplicable
3) Cases of significant ongoing non-equity investments during the report period
□Applicable □Inapplicable
Unit: CNY
Accumulated Accumulated Reasons for
Whether
Involved Investment actual realized unreached
belongs to
Investme sectors of amount during investment Capital Project Estimated earnings up planning Disclos
Project name fixed Disclosure index (if have)
nt mode investment the report amount up to the source progress earnings to the end of schedule and ure date
assets
projects period end of the report the report estimated
investment
period period earnings
Yantai Changyu Please refer to Resolution
International
Self-cons Owned 2017.04 Announcement of Seventh Session
Wine City Yes 0 1705784100 100% - - -
tructed fund .22 Board of Directors 4th Meeting
Blending and Liquor and Resolution Announcement of
Cooling Center alcoholic Seventh Session Board of
Yantai Changyu beverage Directors 8th Meeting Resolution
International Self-cons sector Owned 2017.04 Announcement of Seventh Session
Yes 0 1136520000 100% - - -
Wine City tructed fund .22 Board of Directors 10th Meeting
Bottling Center Resolution Announcement of
Oak Barrel Self-cons Yes 9321301 236335501 Owned 97% - - - 2021.04 Eighth Session Board of Directors
22Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Procurement tructed fund .28 4th Meeting Resolution
Project Announcement of Eighth Session
Infrastructure Board of Directors 11
th Meeting
improvement Resolution Announcement of
Self-cons Owned 2025.04
project of Yes 11439700 11439700 50% - - - Ninth Session Board of Directors
tructed fund .18 th
Changyu 5 Meeting Resolution
Industrial Park Announcement of Ninth Session
Board of Directors 9th Meeting
Projects of Yantai and Resolution Announcement of
local companies
Self-cons Owned 2025.04 Ninth Session Board of Directors
and chateaux Yes 5035200 5035200 60% 0 0 - th
tructed fund .18 11 Meeting disclosed on
placed other than CNINFO
Yantai (http://www.cninfo.com.cn/)
Total -- -- -- 25796201 3095114501 -- -- 0 0 -- -- --
4) Financial assets investment
* Security investment situation
□Applicable □Inapplicable
There are no security investments for the Company during the report period.* Derivatives investment
□Applicable □Inapplicable
There are no derivatives investments for the Company during the report period.
5) The usage situation of raised capital
□Applicable □Inapplicable
There are no usage situations of raised capital for the Company during the report period.
7. Sale of significant assets and equities
1) Sale of significant assets
23Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
□Applicable □ Inapplicable
Whether
The asset The Whether Whether it is
all the
contributed to the proportion of the implemented as
claims
net profit of the The impact the net profit Asset Whethe The property planned; If it isTransactio and
listed company
Counterp Sold Sale n price of the sale on
contributed by sale r it is a associated rights of not implemented Disclo
debts Disclosure
from the the company asset sale to pricing related relationship the assets as planned surearty asset date (CNY’000 involved index
beginning of the the total net princip transact with the involved explain the date
0) have
current period to profit of the les ion counterparty have been reasons and the
been
the date of sale listed fully measures taken
transferr
(CNY’0000) company transferred by the company
ed
This The transaction The
transaction is progressing in Announcement
Governme will not an orderly on Proposal on
nt of adversely manner and the Disposal of
Negoti
Zhuqiao affect the transaction price Partial Grape
The ated
Town in normal of Bases (2024-
Compan pricing
Laizhou production CNY101million Interim 67)
y’s 2024. on the 2024.and the 20166 0 and 0% No Inapplicable No No has been disclosed on
Zhuqiao 12.27 basis 12.27
Governme operation of received so far China
grape of
nt of the and the Securities
base apprais
Yidao company; remaining Journal
al
Town in Certain asset portion is Securities Times
Laizhou transfer expected to be and CNINFO
income can fully paid in (http://www.cni
be obtained. 2025. nfo.com.cn/)
2) Sale of significant equities
□Applicable □Inapplicable
Transact The equity The impact of The proportion Equity Whet The Whether Whether all
the sale on the DiscloCounter Sale ion price
Sold equity contributed to of the net sale her it associated the the claims sure Disclosure index
party date (CNY’0 the net profit of company profit pricing is a relationship equity and debts date
000) the listed contributed by principl relate with the involved involved
24Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
company from equity sale to es d counterparty have been have been
the beginning of the total net transa fully transferred
the current profit of the ction transferred
period to the date listed company
of sale
(CNY’0000)
100% equity interest in It is conducive The announcement
ETABLISSEMENTS to the regarding on
ROULLET FRANSAC Company transferring Equity
held by Francs Champs accelerating and Related Real
Negotia
Participations SAS a the progress of Estate Assets of
ted It is being
subsidiary of the asset disposal Etablissements
ELIOR pricing implemente
Company; The real 2025. optimizing the 2025. Roullet Fransac
GROUP 4033.15 113.43 0.61% on the No Inapplicable No d as
estate held by the 06.09 asset structure 06.10 (2025- Interim 22)
SA basis of scheduled
Company related to the better disclosed on China
appraisa as planned
production and recovering Securities Journal
l
operation of the funds and Securities Times and
ETABLISSEMENTS improving CNINFO
ROULLET operating (http://www.cninfo.c
FRANSAC. efficiency. om.cn/)
8. Analysis of main holding and joint stock companies
□Applicable □ Inapplicable
Situation of main subsidiaries and joint stock companies affecting over 10% of the Company’s net profit
Unit: CNY
Company name Company type Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Yantai Changyu Pioneer Wine Sales Sales of alcoholic
Subsidiary CNY8million 435780936 84451482 960000861 149730313 116595828
Co. Ltd. products
Yantai Changyu Wine Sales Co. Sales of alcoholic
Subsidiary CNY5million 325221337 317390986 277993888 36602781 27439637
Ltd. products
Changyu Trading Co. Ltd. in Sales of alcoholic
Subsidiary CNY5million 78125422 15502381 53889413 8937381 6667698
Development Zone of Yantai products
25Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Laizhou Changyu Wine Sales Co. Sales of alcoholic
Subsidiary CNY1million 113968533 1080297 129834048 4812633 3616178
Ltd. products
Acquisition and disposal of subsidiaries during the report period
□Applicable □Inapplicable
Explanation on main holding and joint stock companies
None
26Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
9. Situation of the structured subjects controlled by the Company
□Applicable □Inapplicable
10. Risks and response measures
1) Risk in price fluctuation of raw materials
Grapes are the Company’s main raw materials. The grape’s yield and quality are affected to a
certain extent by the natural factors such as drought wind rain frost and snow. These force
majeure factors greatly influence the quantity and price of the grapes in this Company orders
and add the uncertainty to the Company’s production and operation. Therefore the Company
will lower the risks that are likely to affect grape quality and result in price fluctuation by
means of expanding the self-run vineyards strengthening the vineyard management and
optimizing the layout of vineyards.
2) Risk in uncertainty of market input and output
To cope with the cutthroat market competition and to meet the needs for market development
the Company has input more and more capital in the market and the sales expense has taken
up a higher percentage point in the business revenue. The input-output ratio will affect the
Company’s operating results to a great extent and the risk that some investments may not
reach the expectations is likely to occur. Therefore the Company will strengthen market
research and analysis enhance market forecast accuracy and continue to perfect the
input-output evaluation system to ensure the investments in market to be satisfactory as
expected.
3) Risk in product transport
The Company’s products are fragile and sent to different places all over the world mostly by
sea railway and expressway. The peak season of sales is usually in cold winter and close to
the spring festival when market has a great demand. At that time the natural and human
factors such as serious shortage of transport capacity resulting from busy flow of people and
goods wind snow freezing as well as traffic accidents make the transport departments
difficult to send products to markets in time and safely. As a result it makes this Company
have to face the risks of missing the peak season of sales. Therefore the Company will adopt
all methods possible like making precise sales prediction and well designed connection of
production and sales reasonably arranging production and transport means and making use of
more available warehouses in different places to lower these kinds of risks.
4) Risk in investment faults
The Company invested many projects in the previous periods and the investment amounts
were relatively large. For individual project owing to the influence of various factors it led to
have the risks of facing with the investment amount out of budget or hardly taking back the
expected investment earnings. The Company will take an adequate argument and scientific
decision-making for investment projects try hard to reduce and avoid investment risks.
5) Risk in exchange rate
The Company’s overseas subsidiaries export products to many different countries and the
export amount is relatively large. There may be exchange losses or gains due to exchange rate
fluctuation.
6) Other risks
During the production and sales of the Company’s products it may be affected by force
majeure such as wars typhoons earthquakes etc..
11. Market value management system and valuation enhancement plan formulation
and implementation
Whether the company has established a market value management system
?Yes □No
27Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Whether the company has disclosed a valuation enhancement plan
□Yes □No
1) The Company’s quality is the foundation of its investment value and an important focus of
market value management. The Company shall focus on its main business improve
operational efficiency and profitability and based on its specific circumstances
comprehensively use the following methods to promote the reasonable reflection of the
Company’s investment value on its quality:Mergers and acquisitions; Equity incentives and
employee stock ownership plans; Cash dividends; Investor relations management;
Information disclosure; Share repurchases; Other lawful and compliant methods.
2) When establishing the compensation system for directors and senior management the
Board of Directors shall ensure that the compensation level matches market development
individual ability and value performance contribution and the Company’s sustainable
development. The Board of Directors may establish long-term incentive mechanisms fully
utilize equity incentives and employee stock ownership plans reasonably determine grant
prices the scope of incentive targets the number of shares and performance evaluation
conditions strengthen the alignment of long-term interests between management employees
and the Company and stimulate the initiative and enthusiasm of management and employees
to enhance the Company’s value.
3) The Board of Directors may based on the Company’s equity structure and business
operation needs promote the establishment of share repurchase mechanisms in the
Company’s Articles of Association or other internal documents.
4) The Board of Directors may based on the Company’s development stage and operational
situation formulate and disclose medium-and-long-term dividend plans increase the
frequency of dividends optimize the dividend rhythm reasonably increase the dividend ratio
and enhance investor satisfaction.
12. Implementation of the “The Improvement Both on Quality and Return” action plan
Whether the company disclosed the “The Improvement Both on Quality and Return” action
plan
□Yes □No
28Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
IV. Corporate Governance Environmental and Social Responsibility
1. Changes in the Company’s directors supervisors and senior executives
□Applicable □Inapplicable
Name Position held Type Date Reason
Leaving office upon the
Xunzhang LIU Director 2025.05.23 Change the term of office
expiration of the term
Leaving office upon the
Stefano Battioni Director 2025.05.23 Change the term of office
expiration of the term
Leaving office upon the
Enrico Sivieri Director 2025.05.23 Change the term of office
expiration of the term
Changqing Leaving office upon the
Independent director 2025.05.23 Change the term of office
DUAN expiration of the term
Leaving office upon the
Huirong LIU Independent director 2025.05.23 Change the term of office
expiration of the term
Leaving office upon the
Qinglin LIU Independent director 2025.05.23 Change the term of office
expiration of the term
Deputy general
Hua JIANG Non-reappointment 2025.06.09 Non-reappointment
manager
General manager
Hongbo SUN Be elected 2025.06.09 Be elected
assistant
General manager
assistant and the
Cuimei GUO Be elected 2025.06.09 Be elected
person in charge of
finance
2. Situation of profit distribution and capitalization of capital reserve into share capital
during the report period
□Applicable □Inapplicable
The Company plans not to distribute cash dividends or give bonus shares or make capitalization of
capital reserve into share capital.
3. Implementation of the Company’s equity inventive plan employee stock ownership
plan or other employee incentive measures
□Applicable □Inapplicable
1) Equity incentive
In 2023 the Company implemented the restricted share incentive plan for 203 middle-level
managers and core cadres and granted them 5.2956 million shares of restricted share. On July 25
2025 the Company’s Tenth Session Board of Directors 2nd Meeting deliberated and approved the
Proposal on Failure to Achieve Conditions for Lifting Restrictions in the Second Period of Lifting
Restriction Involved in the Company’s 2023 Restricted Share Incentive Plan and Proposal on
Buy-back and Cancelling Some Restricted Shares of the Company’s 2023 Restricted Share
Incentive Plan and to Adjust the Buy-back Price. The conditions for lifting restrictions in the
second restriction-lifted period of restricted shares granted under the Company’s Incentive Plan
have not been met and the number of restricted shares granted to the Company’s 179 incentive
subjects that needs to be bought back and cancelled amounts to 1864305 shares; 21946 restricted
shares that the departing incentive recipient has been granted but not yet released from restrictions
need to be bought back and cancelled due to dimission of one incentive subject; 267521 restricted
shares that have been granted but not yet released from restrictions need to be bought back and
cancelled due to job changes of sixteen incentive subject. The total number of restricted shares
29Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
that needs to be bought back and cancelled by the Company this time amounts to 2153772
shares.
2) Implementation of employees’ share ownership plan
□Available □Not available
3) Other employee incentives
□Available □Not available
4. Environmental information disclosure situation
Whether the listed company and its major subsidiaries are included in the list of enterprises that
disclose environmental information in accordance with the law
□Yes □No
5. Social responsibility performance
1) The Company served the rural revitalization well adopted the mode of “company +farmer” or “company + cooperative + farmer” reformed the sloping fields of Jiaodong
Peninsular and the northwestern area including Ningxia and Xinjiang and so on the
uncultivated land or the barren land into graperies. By means of providing capital and
technology of viticulture to fruit growers scientific management level of vineyard had been
improved. The Company spared no effort to popularize the non-pollution and mechanized
planting methods continuously improved production efficiency of grape base and quality of
grape and reduced production cost of grape and labor intensity. Through the above measures
on the one hand it promotes the effective use of land resources promotes the organic
integration of rural households and modern agriculture and helps increase agricultural
efficiency farmers’ incomes and rural development; on the other hand it improves the local
ecological environment and brings huge ecological benefits.
2) The Company provided counterpart supports to Huangchengyang village in Longkou City
an old revolutionary base area by purchasing local agricultural products to help solve the
problem of slow sales.
3) The Company provided help and assistance to the Company’s in-service or retired
employees with poor families as well as the Company’s in-service or retired employees with
chronic or serious illnesses.
30Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
V. Major issues
1. Commitments that the Company’s actual controllers shareholders related parties
acquirers and the Company and other related commitment parties have implemented
during the report period and have not implemented up to the end of the report period
□Applicable □Inapplicable
There is no commitments that the Company’s actual controllers shareholders related parties
acquirers and the Company and other related commitment parties have implemented during
the report period and have not implemented up to the end of the report period
2. Non-operational occupation capital of the listed company by controlling shareholder
and its related parties
□Applicable □Inapplicable
There is no non-operational occupation capital of the listed company by controlling
shareholder and its related parties during the report period.
3. Illegal external guarantee
□Applicable □Inapplicable
There is no illegal guarantee situation during the report period.
4. Appointment and dismissal of certified public accountants
Whether the semi-annual report has been audited
□Yes □No
The semi-annual report has not been audited.
5. Explanation from the Board of Directors and the Board of Supervisors for the
“Non-standard Audit Report” during this report period
□Applicable □Inapplicable
6. Explanation from the Board of Directors for the “Non-standard Audit Report” of
last year
□Applicable □Inapplicable
7. Issues related with bankruptcy reorganization
□Applicable □Inapplicable
There are no related issues of bankruptcy reorganization happened at the end of the report
period.
8. Litigation Issue
Material litigation and arbitration
□Applicable □Inapplicable
There are no material litigation and arbitration during the report period.Other Litigation Issue
□Applicable □Inapplicable
31Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
9. Penalty and rectification
□Applicable □Inapplicable
There is no penalty and rectification during the report period.
10. Credit of the Company its controlling shareholder and actual controller
□Applicable □Inapplicable
11. Major related transactions
1) Related transactions in relation to routine operations
□Applicable □Inapplicable
Proportion Approved Whether Available
Related Relationsh Pricing Amount accounting for exceed
party ip Type Content principle Price (CNY amount of
transaction approved Clearin market price Disclosuquota (CNY g form of similar re date Disclosure index
‘0000) similar 0000) transactiontransactions ‘ quota transactions
Expected
Announcement on
Yantai Controlled Purchase 2025 Annual Routine
Shenma by the Purchase andand commission Agreemen Determine 2025.04. Related TransactionPackagin same d by 2719 15.73% 6800 No Cash No disclosed in China
g Co. parent commission processing t pricingprocessing packaging agreement
18 Securities
Ltd. company materials JournalSecuritiesTimesand CNINFO in
April 18 2025
Total -- -- 2719 -- 6800 -- -- -- -- --
Details of the return of large sales No
Actual performance of the estimated total amount for
daily operations related transactions by category that No
will occur during this period.Reason for the deference between transaction price Inapplicable
and market reference price
32Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
2) Related transactions in relation to acquisition and sales of assets or equity
□Applicable □Inapplicable
There are no related transactions in relation to acquisition or sales of assets or equity during
the report period.
3) Related transactions in relation to common foreign investment
□Applicable □Inapplicable
There are no related transactions in relation to common foreign investment during the report
period.
4) Related credit and debt dealings
□Applicable □Inapplicable
Whether or not existing non-operating related credit and debt transactions
□Yes □No
There is no non-operating related credit and debt transactions during the report period.
5) Deals of related financial companies
□Applicable □Inapplicable
There is no deposit loan credit granting or other financial business between the related
financial companies and related parties.
6) Deals between financial companies controlled by the Company and relayed parties
□Applicable □Inapplicable
There is no deposit loan credit granting or other financial business between the financial
companies controlled by the Company and related parties.
7) Other major related transactions
□Applicable □Inapplicable
For other major related transactions please refer to the Announcement of 2025 AnnualExpected Routine Related Transaction and the Section XI “ Related Parties and RelatedTransaction” of the Financial Report of this report.Disclosure website of interim report for major related transaction
Name of interim announcement Disclosure date of interim Name of disclosure websiteannouncement for interim announcement
Announcement of 2025 Annual Expected 2025.04.18 CNINFO (www.cninfo.com.cn)
Routine Related Transaction
12. Major contracts and execution conditions
1) Trusteeship contract and lease issues
* Trusteeship situation
□Applicable □Inapplicable
There is no trusteeship situation during the report period.* Contracting situation
□Applicable □Inapplicable
There is no such contracting situation during the report period.* Lease situation
□Applicable □Inapplicable
Explanation for lease situation
On January 1 2022 the Company renewed the Space Lease Agreement with the controlling
33Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
shareholder Yantai Changyu Group Company Limited. The Company leased the space with
15196.94 square meters locating at No. 174 Shihuiyao Road Zhifu District Yantai City. The
rent per year is CNY1.4645million with a rental period of 5 years from January 1 2022 to
December 31 2026. On January 1 2022 the Company’s subordinate Sales & Marketing Co.of Yantai Changyu Pioneer Wine Company Limited Brandy Sales Division renewed the
Space Lease Agreement with the controlling shareholder Yantai Changyu Group Company
Limited leasing the space with 42552.83 square meters locating at No. 1 Jichang Road
Zhifu District Yantai City and the space with 3038 square meters locating at 56 Dama Road
Zhifu District Yantai City which are all under the name of controlling shareholder. The rent
of above spaces per year is CNY4.3935million with a rental period of 5 years from January 1
2022 to December 31 2026.
In 2023 this Company signed a house-leasing contract with Yantai Shenma Packaging
Company Limited. According to this contract since July 1 2023 this Company leased
property to Yantai Shenma Packaging Company Limited for a business purpose with the
annual rent of CNY1626880. This contract expires on June 30 2028.Project whose profit and loss brought for the Company reach more than 10% of the total
profit during the report period
Applicable □Inapplicable
There are no lease projects whose profit and loss brought for the Company reach more than
10% of the total profit during the report period.
34Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
2) Major guarantee
□Applicable □Inapplicable
Unit: CNY’0000
External guarantee of the Company and its subsidiaries（excluding guarantee to subsidiaries）
Disclosure date of Countergua
Actual date of Whether or not Whether or not belong
related Guarantee Actual guarantee Guarantee Collateral rantee
Guarantee object name occurrence (date of Guarantee Period complete to related-party
announcement about quota amount type (if have) situation (if
agreement) implementation guarantee
guarantee quota have)
—0—0—————
Total of the external guarantee quota approved Total of the actual external guarantee amount during the
00
during the report period (A1) report period (A2)
Total of the external guarantee quota approved by Balance of the actual external guarantee by the end of the
00
the end of the report period (A3) report period (A4)
Guarantee situations between the Company and subsidiaries
Disclosure date of
Countergua Whether or not Whether or not belong
related Guarantee Actual date of Actual guarantee Guarantee
Guarantee object name Collateral rantee Guarantee Period complete to related-party
announcement about quota occurrence amount type
situation implementation guarantee
guarantee quota
Effective as of the
date this
Agreement is
Joint liability signed and will
Kilikanoon Estate Pty Ltd 2023.08.31 7530 2023.09.01 7530 - - No Yes
assurance remain in effect as
long as the
guarantor remains
in business with
35Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
East West Bank
Total of the guarantee quota approved to Total of the actual guarantee amount for subsidiaries during
00
subsidiaries during the report period (B1) the report period (B2)
Total of the guarantee quota approved to Balance of the actual guarantee for subsidiaries by the end
75307530
subsidiaries by the end of the report period (B3) of the report period (B4)
Guarantee situations between subsidiaries
None
Total guarantee amount of the Company（Total of above three major items）
Total of the approved guarantee quota during the Total of the actual guarantee amount during the report
00
report period（A1+B1+C1） period（A2+B2+C2）
Total of the approved guarantee quota by the end Balance of the actual guarantee by the end of the report
75307530
of the report period（A3+B3+C3） period（A4+B4+C4）
The proportion of actual total guarantee amount (A4+B4+C4) accounting for the Company’s net asset 0.71%
Among :
The amount of guarantee for shareholders actual controllers and their related parties（D） 0
The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is more than 70% directly or indirectly（E） 0
Total amount of guarantee of the part that exceeds 50% of net assets（F） 0
Total amount of the above-mentioned three items（D+E+F） 0
Explanation for undue guarantees that have happened warranty liability or may take joint payback liabilities during the report period (if have) No
Explanation for violating due process to provide external guarantee (if have) No
Explanation on specific situations of adapting guarantee by complex methods
None
36Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
3) Financial management entrustment
□Applicable □Inapplicable
There is no financial management entrustment during the report period.
4) Other important contracts
□Applicable □Inapplicable
Name of The contract The contract Wheth
Name of Performanc
the Date of deals with the deals with the Name of Apprais Pricin Transacti er for Relev
the other e at the end Disclos
company Object of the carrying value appraised value appraisal al base g on price related ance
party in agency date of the ure Disclosure indexentering contract contrac of the asset of the asset princi (CNY’000 party relatithe reporting date
into the t signed (CNY’0000) (CNY’0000) (if ple transac on
contract (if have) (if have) 0) period
contract (if have) have) tions
Please refer to the
The vines SHAND
Company’s
and the ONG
In the Announcement on
The investment ZHONG
process of the Proposal on
Governme in the CHUAN
execution Disposal of
nt of production G LAND
but the full Partial Grape
Yantai Zhuqiao facilities REAL
transaction Bases disclosed
Changyu Town in such as the ESTATE Negoti
2024.12 2024.11. price has not 2024.12 on China
Pioeer Laizhou nursing 7231 20166 ASSET ated 20166 No None.27 30 been .27 Securities Journal
Wine and the house EVALUA pricing
obtained Securities Times
Co.Ltd. Governme water TION
according to and CNINFO
nt of Yidao conservancy AND
the date (http://www.cninf
Town in facilities SURVEY
agreed in the o.com.cn/)
Laizhou roads and ING Co.contract (Announcement
fences and Ltd.No. : 2024-
so on
interim 67)
37Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
13. Other Major issues
□Applicable □Inapplicable
There are no other major issues need to be explained during the report period.
14. Major issues of Company’s subsidiaries
□Applicable □Inapplicable
38Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
V. Changes in Shares and Shareholders’ Situation
1. Changes in shares
1) Changes in shares
Unit: share
Amount before this change Change (+ -) Amount after this change
Percentage Distribute bonus Transfer other capital Percentage
Amount Allot new share Others Subtotal Amount
% share to share capital %
I. Shares with trading limited condition 4861098 0.72% -17500 -17500 4843598 0.72%
1. State-owned holdings
2. State-owned legal person holdings
3. Other domestic holdings 4861098 0.72% -17500 -17500 4843598 0.72%
Among which: domestic legal person
domestic natural person 4861098 0.72% -17500 -17500 4843598 0.72%
4. Foreign-owned holdings
Among which: foreign legal person
foreign natural person
II. Shares without trading limited condition 666962802 99.28% 17500 17500 666980302 99.28%
1. A shares 455094295 67.74% 10000 10000 455104295 67.74%
2. B shares 211868507 31.54% 7500 7500 211876007 31.54%
3. Oversea listed foreign shares
4. Others
III. Total shares 671823900 100.00% 671823900 100.00%
39Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Cause of share change
□Applicable □Inapplicable
During the reporting period the Company bought back and cancelled some B shares and restricted
shares granted to employees
Approval of share change
□Applicable □Inapplicable
It has been deliberated and approved by the Company’s Board of Directors and Shareholders’
Meeting.Transfer ownership of changed shares
□Applicable □Inapplicable
The transfer has been completed.Implementation progress of share buy-back
□Applicable □Inapplicable
The Company held the Ninth Session Board of Directors 11th Meeting on April 16 2025 and the
2024 Annual Shareholders’ Meeting on May 23 2025. The meetings deliberated and approved the
Plan on Buy-Back of Partial B Shares of Yantai Changyu Pioneer Wine Co. Ltd.one by one.According to the above-mentioned B share buy-back plan the Company would in light of its own
financial and operating conditions implement the buy-back of B shares through centralized
competitive bidding under the condition that the total buy-back funds do not exceed
CNY100million and the buy-back price does not exceed HKD11.50 per share. The buy-back
period would not exceed 12 months from the date when the Shareholders’ Meeting approved the
share buy-back plan. The proposed number of shares to be bought back is no less than 10 million
shares and no more than 15 million shares. The specific number of buy-back will be based on the
actual number of shares bought back at the expiration of the buy-back period. The bought-back
shares would be cancelled and the Compan’s registered capital would be reduced accordingly. At
the same time the Board of Directors would be authorized to handle relevant matters.The Company implemented a dividend payment in June 2025 with a cash dividend of CNY4
(HKD: CNY = 1:0.9169) for every 10 shares to all shareholders and therefore adjusted the
buy-back price ceiling to not exceed HKD11.06 per share with effect from June 24 2025.As of July 31 2025 the Company has bought back 6790000 B shares of the Company through
share buy-back special securities account in a centralized bidding mode accounting for
1.010682% of Company’s current total share capital with the highest transaction price of
HKD9.00 per share and the lowest transaction price of HKD8.20 per share. The total transaction
amount was HKD58967861 (excluding transaction fees).Implementation progress of reducing holding buy-back share through the way of centralized
bidding
□Applicable □Inapplicable
The influence of share change on the financial indicators such as basic earnings per share diluted
earnings per share of the latest year and the latest period net asset per share belonging to the
Company’s common shareholders etc.□Applicable □Inapplicable
During the reporting period the fluctuation range of the Company’s shares was extremely small.The influence of share change on the financial indicators such as basic earnings per share diluted
earnings per share of the latest year and the latest period net asset per share belonging to the
Company’s common shareholders etc. is almost negligible.
40Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Other contents the Company thinks necessary or securities regulatory departments ask to make public.□Applicable □Inapplicable
2) Changes in restricted shares
□Applicable □Inapplicable
Unit: share
Number of Number of Number of Number of
restricted shares at restricted shares restricted shares restricted shares at Date of lifting
Shareholder name Reason for restricted sale
the beginning lifted during this increased during the end of the restrictions
period period this period period
Released restricted shares but cannot be sold due to senior executive
Hongjiang ZHOU 209700 209700 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Jian SUN 277500 7500 270000 2025.01.01
lock-in
Released restricted shares but cannot be sold due to senior executive
Jiming LI 120000 120000 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Jianxun JIANG 120000 120000 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Hua JIANG 127500 127500 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Bin PENG 120000 120000 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Jianfu PAN 70000 70000 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Qingkun KONG 75000 5000 70000 2025.01.01
lock-in
Shilu LIU 70000 70000 Restricted shares cannot be sold —
Released restricted shares but cannot be sold due to senior executive
Zhenbo XIAO 75000 5000 70000 2025.01.01
lock-in
Other key employees who had been
3596398 3596398 Restricted shares cannot be sold —
granted restricted shares
Total 4861098 17500 0 4843598 -- --
41Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
2. Securities issuance and listing situation
□Applicable □Inapplicable
3. The number of shareholders of the Company and the shareholdings
Total shareholders in the report period 44167 Total number of preferred shareholder recovering voting power by the end of report period (if have)(see note 8) 0
Shareholders holding more than 5% or the top 10 shareholders holding situation
Percentage Pledged or frozen
Name of Shareholders Character of Shares held until the end Changes during the Number of Number ofshareholders (%) of the report period report period restricted shares unrestricted shares Share status Amount
YANTAI CHANGYU GROUP CO. LTD. Domestic non-state legalperson 51.42% 345473856 0 0 345473856 Inapplicable 0
Fengdi JIANG Domestic natural person 0.71% 4751000 -30900 0 4751000 Inapplicable 0
Hairong HU Domestic natural person 0.51% 3457035 274000 0 3457035 Inapplicable 0
VANGUARD TOTAL INTERNATIONAL STOCK Foreign legal person 0.51% 3446137 0 0 3446137 Inapplicable 0
INDEX FUND
Social Security Fund 114 Other 0.51% 3425055 0 0 3425055 Inapplicable 0
HONG KONG SECURITIES CLEARING Foreign legal person 0.46% 3105262 428669 0 3105262 Inapplicable 0
COMPANYLIMITED
VANGUARD EMERGING MARKETS STOCK Foreign legal person 0.46% 3087201 0 0 3087201 Inapplicable 0
INDEX FUND
Social Security Fund 413 Other 0.43% 2910060 300000 0 2910060 Inapplicable 0
NORGES BANK Foreign legal person 0.37% 2464119 0 0 2464119 Inapplicable 0
Haitong International Securities Company Foreign legal person 0.37% 2461494 0 0 2461494 Inapplicable 0
Limited-Account Client
Strategic investors or legal result of the placement of new shares to become a
top 10 shareholders No
The explanation for the associated relationship and accordant action Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant actionrelationship with the other 9 listed shareholders while the relationship among the other shareholders is unknown.Explanation of the above-mentioned shareholders’ entrustment/ fiduciary
voting rights and waiver of the voting rights No
Special explanation for the existence of a special repurchase account among
the top 10 shareholders No
42Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
The top 10 shareholders with shares without trading limited condition
Type of share
Name of Shareholders Number of shares without trading limited condition held until the end of the year
Type of share Amount
YANTAI CHANGYU GROUP CO. LTD. 345473856 A 345473856
Fengdi JIANG 4751000 A 4751000
Hairong HU 3457035 A 3457035
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3446137 B 3446137
Social Security Fund 114 3425055 A 3425055
HONG KONG SECURITIES CLEARING COMPANY LIMITED 3105262 A 3105262
VANGUARD EMERGING MARKETS STOCK INDEX FUND 3087201 B 3087201
Social Security Fund 413 2910060 A 2910060
NORGES BANK 2464119 B 2464119
Haitong International Securities Company Limited-Account Client 2461494 B 2461494
The explanation for the associated relationship and accordant action of the top
10 shareholders with unrestricted shares the the associated relationship and Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant action
accordant action between the top 10 shareholders with unrestricted shares and relationship with the other 9 listed shareholders and the relationship among the other shareholders is unknown.the top 10 shareholders
Explanation for the top 10 shareholders who involved in financing activities
and stock trading business No
Shareholders holding more than 5% the top 10 shareholders and the top 10 shareholders with unrestricted tradable shares participate in the lending of
shares involved in the refinancing business
□Applicable □Inapplicable
The top 10 shareholders and the top 10 shareholders with unrestricted tradable shares have changed from the previous period due to refinancing
lending/restitution reasons
□Applicable □Inapplicable
Whether or not the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction during the
report period
□Yes □No
43Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
There is no agreed repurchase transaction taken by the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares during the
report period.
4. Changes in shareholdings of directors supervisors and senior executives
□Applicable □Inapplicable
Number of Increased number Decreased number Number of shares Number of restricted Number of restricted Number of restricted
Shares held at the of shares held in the of shares held in held at the end shares granted at the shares granted in the shares granted at the
Name Position Status beginning period current period the current period period beginning period current period end period
(shares) (shares) (shares) (shares) (shares) (shares) (shares)
ZHOU
Chairman Incumbent 279600 279600 240000 240000
Hongjiang
Director and
SUN Jian General Incumbent 360000 360000 210000 210000
Manager
Director and
LI Jiming Deputy General Incumbent 160000 160000 160000 160000
Manager
Director Deputy
JIANG General
Incumbent 160000 160000 160000 160000
Jianxun Manager and
Board secretary
Deputy General
JIANG Hua Outgoing 170000 170000 160000 160000
Manager
Deputy General
PENG Bin Incumbent 160000 24100 135900 160000 -24100 135900
Manager
General
PAN Jianfu Manager Incumbent 70000 70000 70000 70000
Assistant
General
KONG
Manager Incumbent 75000 75000 75000 75000
Qingkun
Assistant
44Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
General
LIU Shilu Manager Incumbent 70000 70000 70000 70000
Assistant
General
XIAO
Manager Incumbent 75000 75000 75000 75000
Zhenbo
Assistant
General
SUN
Manager Incumbent 25182 25182 25182 25182
Hongbo
Assistant
General
Manager
GUO
Assistant and the Incumbent 28763 28763 28763 28763
Cuimei
Person in Charge
of Finance
Total -- -- 1633545 0 24100 1609445 1433945 -24100 1409845
5. Changes in controlling shareholders or actual controllers
Changes in the controlling shareholders during the report period
□Applicable □Inapplicable
There is no any change in the controlling shareholders during the report period.Changes in the actual controllers during the report period
□Applicable □Inapplicable
There is no any change in the actual controllers during the report period.
6. Related Situation of Preferred Shares
□Applicable □Inapplicable
There are no preferred shares during the report period.
45Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
XII. Related Situation of Bonds
□Applicable □Inapplicable
XIII. 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 notes is RMBYuan.
1. Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. June 30 2025 Unit: yuan
Item Note June 30 2025 December 31 2024
Current assets:
Monetary fund 7.1 1839091128 1797848130
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable 7.2 27600 1036243
Accounts receivable 7.3 181953878 270829601
Receivables financing 7.4 209353041 230960211
Advance payment 7.5 42889090 60631575
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.6 157384720 264598394
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 7.7 2959823407 2904070556
46Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note June 30 2025 December 31 2024
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.8 65707977 80383241
Total current assets 5456230841 5610357951
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.9 31846660 34864748
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.10 20735590 21960451
Fixed assets 7.11 5436526847 5551671795
Construction in progress 7.12 4182026 10177372
Productive biological assets 7.13 64372757 66483964
Oil-and-gas assets
Right-of-use assets 7.14 64049882 71761262
Intangible assets 7.15 519630697 527706383
Including: Data resource
Development expenditure
Including: Data resource
Goodwill 7.16 101149082 101149082
Long-term prepaid expenses 7.17 289627226 298793702
Deferred income tax assets 7.18 187984879 221993099
Other non-current assets 7.19 2572310 3554409
Total non-current assets 6722677956 6910116267
Total assets 12178908797 12520474218
Current liabilities:
Short-term loans 7.21 214934685 216140346
Borrowings from the Central Bank
Borrowing funds
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.22 349303625 417510439
Advances from customers
Contract liabilities 7.23 116410398 128090353
Financial assets sold for repurchase
47Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note June 30 2025 December 31 2024
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.24 109786554 166704917
Taxes and dues payable 7.25 126448511 189147054
Other payables 7.26 334077157 398149521
Including: Interest payable
Dividends payable 7.26 420120
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.27 79528135 79949769
Other current liabilities 7.28 15294285 40764242
Total current liabilities 1345783350 1636456641
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.29 77915455 50637203
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 7.30 20943922 27542829
Long-term accounts payable
Long-term employee remunerations payable
Estimated liabilities
Deferred income 7.31 25886226 25938817
Deferred income tax liabilities 7.18 6833097 7344165
Other non-current liabilities
Total non-current liabilities 131578700 111463014
Total liabilities 1477362050 1747919655
Owner’s equities:
Capital stock 7.32 671823900 671823900
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 7.33 482143547 482143547
Minus: Treasury stock 7.34 77854909 70704426
Other comprehensive income 7.35 -26131634 -39714972
Special reserves
Surplus reserves 7.36 342732000 342732000
General risk preparation
Undistributed profit 7.37 9149795952 9232928370
48Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note June 30 2025 December 31 2024
Total owner’s equities attributable to the parent company 10542508856 10619208419
Minority equity 159037891 153346144
Total owner’s equities 10701546747 10772554563
Total liabilities and owner’s equities 12178908797 12520474218
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2. Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Item Note June 30 2025 December 31 2024
Current assets:
Monetary fund 885870818 876557848
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 18.1 1331912 226796
Receivables financing 22029644 13110297
Advance payment 885 5526029
Other receivables 18.2 577999876 952762563
Including: Interest receivable
Dividends receivable 3781080 130000000
Inventories 419160907 396334804
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 24956102
Total current assets 1931350144 2244518337
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
49Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note June 30 2025 December 31 2024
Long-term equity investments 18.3 7689232919 7689232919
Other investments in equity instruments
Other non-current financial assets
Investment real estate 20735590 21960451
Fixed assets 166907689 176158046
Construction in progress
Productive biological assets 18521863 20075933
Oil-and-gas assets
Right-of-use assets 5683386 6985971
Intangible assets 68433435 69806357
Including: Data resource
Development expenditure
Including: Data resource
Goodwill
Long-term prepaid expenses
Deferred income tax assets 2095422 2624459
Other non-current assets 1832430000 1864430003
Total non-current assets 9804040304 9851274139
Total assets 11735390448 12095792476
Current liabilities:
Short-term loans 50000000 50000000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 39861341 92990317
Advances from customers
Contract liabilities
Employee remunerations payable 59086644 68033360
Taxes and dues payable 7406091 2010276
Other payables 522387588 584915573
50Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note June 30 2025 December 31 2024
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 2669689 2199212
Other current liabilities
Total current liabilities 681411353 800148738
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 3172040 5115806
Long-term accounts payable
Long-term employee remuneration payable
Estimated liabilities
Deferred income 177355 1398701
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 3349395 6514507
Total liabilities 684760748 806663245
Owner’s equities:
Capital stock 671823900 671823900
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 519382073 519382073
Minus: Treasury stock 77854909 70704426
Other comprehensive income
Special reserves
Surplus reserves 342732000 342732000
51Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note June 30 2025 December 31 2024
Undistributed profit 9594546636 9825895684
Total owner’s equities 11050629700 11289129231
Total liabilities and owner’s equities 11735390448 12095792476
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
3. Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Item Note Sum of this period Sum of prior period
1. Total operating income 1470576177 1522309436
Including: Operating income 7.38 1470576177 1522309436
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1213880507 1243403652
Including: Operating costs 7.38 592806258 595748730
Interest expenditure
Handling fees and commission
expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of the withdrawn reserve
fund for insurance contract
Policy bonus payment
Reinsurance expenditures
Taxes and surcharges 7.39 97851440 112820607
Selling expenses 7.40 402150816 391916515
Administrative expenses 7.41 126647959 132945615
Research and development expenses 7.42 9071966 6748675
Financial expenses 7.43 -14647932 3223510
Including: Interest expenses 5528569 9918886
Interest income 5914026 12390815
Plus: Other profit 7.44 19258546 33630640
Investment profit (loss is listed with “-”) 7.45 -3018088 -1932092
52Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note Sum of this period Sum of prior period
Including: Investment profit for joint-run
-3018088-1932092
business and joint venture
Financial assets measured at
amortized cost cease to be
recognized as income
Exchange income (loss is listed with “-”)
Net exposure hedge income (loss is listed
with “-”)
Income from fair value changes (loss is
listed with “-”)
Credit impairment loss (loss is listed with
7.4615490584083362
“-”)
Asset impairment loss (loss is listed with
7.47-2093965-1024683
“-”)
Income from asset disposal (loss is listed
7.483610144647
with “-”)
3. Operating profit (loss is listed with “-”) 272752235 313667658
Plus: Non-operating income 7.49 917633 1677625
Minus: Non-operating expenses 7.50 589363 611583
4. Total profits (total loss is listed with “-”) 273080505 314733700
Minus: Income tax expenses 7.51 81765775 92758345
5. Net profit (net loss is listed with “-”) 191314730 221975355
(1) Classification by operation continuity
1. Net profit from continuing operation (net loss is
191314730221975355
listed with “-”)
2. Net profit from terminating operation (net loss
is listed with “-”)
(2) Classification by ownership
1. Net profit attributable to owner of the parent
185597142221177382
company
2. Minority interest income 5717588 797973
6. Net after-tax amount of other comprehensive income 7.52 14870571 -11182076
Net after-tax amount of other comprehensive income
13583338-10069669
attributable to owner of the parent company
(1) Other comprehensive income not to be
reclassified into profit and loss later
1. Changes after remeasuring and resetting
the benefit plans
53Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note Sum of this period Sum of prior period
2. Other comprehensive income not to be
reclassified into profit and loss
under equity method
3. Changes in the fair value of other
investments in equity instruments
4. Changes in the fair value of the
enterprise’s own credit risk
5. Other
(2) Other comprehensive income to be
13583338-10069669
reclassified into profit and loss later
1. Other comprehensive income to be
reclassified into profit and loss
under equity method
2. Changes in the fair value of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of other
credit investments
5. Provision for cash-flow hedge
6. Difference in translation of Foreign
13583338-10069669
Currency Financial Statement
7. Other
Net after-tax amount of other comprehensive income
1287233-1112407
attributable to minority shareholders
7. Total comprehensive income 206185301 210793279
Attributable to owner of the parent company 199180480 211107713
Attributable to minority shareholders 7004821 -314434
8. Earnings per share:
(1) Basic earnings per share 0.28 0.32
(2) Diluted earnings per share 0.28 0.32
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
4. Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Item Note Sum of this period Sum of prior period
54Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note Sum of this period Sum of prior period
1. Operating income 18.4 162594967 185899536
Minus: Operating costs 18.4 145265979 166106938
Taxes and surcharges 3077351 4511741
Selling expenses
Administrative expenses 24273338 31118671
Research and development expenses 1672191 399923
Financial expenses -3745617 -8236589
Including: Interest expenses 890133 2318915
Interest income 7868873 4102498
Plus: Other profit 1319967 608617
Investment profit (loss is listed with “-”) 18.5 46246053 164552732
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 “-”) -288 -1262
Asset impairment loss (loss is listed with “-”)
Income from asset disposal (loss is listed with “-”)
2. Operating profit (loss is listed with “-”) 39617457 157158939
Plus: Non-operating income 194320 415749
Minus: Non-operating expenses 159997 505099
3. Total profits (total loss is listed with “-”) 39651780 157069589
Minus: Income tax expenses 2271268 -248882
4. Net profit (net loss is listed with “-”) 37380512 157318471
55Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note Sum of this period Sum of prior period
(1) Net profit from continuing operation (net loss is listed with
37380512157318471
“-”)
(2) Net profit from terminating operation (net loss is listed
with “-”)
5. Net after-tax amount of other comprehensive income
(1) Other comprehensive income not to be reclassified into
profit and loss later
1. Changes after re-measuring and resetting the benefit
plans
2. Other comprehensive income not to be reclassified into
profit and loss under equity method
3. Changes in the fair value of other investments in equity
instruments
4. Changes in the fair value of the enterprise’s own credit
risk
5. Other
(2) Other comprehensive income to be reclassified into profit
and loss later
1. Other comprehensive income to be reclassified into
profit and loss under equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive income
4. Provision for credit impairment of other credit
investments
5. Provision for cash-flow hedge
6. Difference in translation of Foreign Currency Financial
Statement
7. Other
6. Total comprehensive income 37380512 157318471
7. Earnings per share:
(1) Basic earnings per share 0.06 0.23
(2) Diluted earnings per share 0.06 0.23
56Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
5. Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Item Note Sum of this period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 1660826081 1866371505
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Cash received from receiving insurance premium of original
insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment funds
Cash received from collecting interest handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchased business funds
Net cash received for buying and selling securities
Tax refund received 26792333 16377257
Other cash received related to operating activities 7.53 33768838 48893252
Subtotal of cash flows of operating activities 1721387252 1931642014
Cash paid for goods and services 673020392 758417685
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 224360824 264499866
Cash paid for taxes and expenses 339863955 408101346
Other cash paid related to operating activities 7.53 244720953 296742753
57Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note Sum of this period Sum of prior period
Sub-total of cash outflows of operating activities 1481966124 1727761650
Net cash flow from operating activities 239421128 203880364
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 39000000 413000000
Cash received from obtaining investment income
Cash received from obtaining interest income 604684 2589064
Cash received from disposal of fixed assets intangible assets
11003449880843
and other long-term assets
Net cash received from disposal of branch and other business
unit
Other cash received related to investing activities
Subtotal of cash flows of investment activities 149639182 415669907
Cash paid to acquire fixed assets intangible assets and other
3873388067893118
long-term assets
Cash for investment
Cash paid for purchasing fixed deposits 18000000 246000000
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 56733880 313893118
Net cash flow from investing activities 92905302 101776789
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 221495666 307063337
Other cash received related to financing activities
Subtotal cash flows of financing activities 221495666 307063337
Cash paid for paying debts 202716654 484652320
Cash paid for distributing dividend and profit or paying
273324036359372568
interest
58Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Note Sum of this period Sum of prior period
Including: Dividend and profit paid to minority shareholders
by branch
Other cash paid related to financing activities 18237867 167730790
Subtotal of cash outflows of financing activities 494278557 1011755678
Net cash flow from financing activities -272782891 -704692341
4. Influences of exchange rate fluctuation on cash and cash
1469544-1131315
equivalents
5. Net Increase in cash and cash equivalents 61013083 -400166503
Plus: Balance at the beginning of the period of cash and cash
17177275511963155752
equivalents
6. Balance at the end of the period of cash and cash equivalents 1778740634 1562989249
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
6. Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Item Sum of this period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of
198308091251492494
services
Tax refund received
Other cash received related to operating activities 6891241 8000504
Subtotal of cash flows of operating activities 205199332 259492998
Cash paid for goods and services 163211040 137448769
Cash paid to and on behalf of employees 27267075 34244388
Cash paid for taxes and expenses 14046037 23228320
Other cash paid related to operating activities 27817643 28704858
Sub-total of cash outflows of operating activities 232341795 223626335
Net cash flow from operating activities -27142463 35866663
2. Cash flow from investing activities:
Cash received from disinvestment
59Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Sum of this period Sum of prior period
Cash received from withdrawal of fixed deposits 39000000 413000000
Cash received from obtaining investment income 170723485 161104967
Cash received from obtaining interest income 604684 2589064
Net cash received from disposal of fixed assets
110027000
intangible assets and other long-term assets
Net cash received from disposal of branch and other
business unit
Other cash received related to investing activities 37406810 20000000
Subtotal of cash flows of investment activities 357761979 596694031
Cash paid to acquiring fixed assets intangible assets
25934163193066
and other long-term assets
Cash for investment 1883538
Cash paid for purchasing fixed deposits 18000000 246000000
Net cash paid for acquiring branch and other
business unit
Other cash paid related to investment activities 2000000 198200000
Subtotal of cash outflows of investment activities 22593416 449276604
Net cash flow from investing activities 335168563 147417427
3. Cash flow from financing activities:
Cash received from acquiring investment
Cash received from acquiring loans
Other cash received related to financing activities
Subtotal cash flows of financing activities
Cash paid for debts 100000000
Cash paid to distribute dividend profit or pay
269303366347324780
interest
Other cash paid related to financing activities 8956456 155356609
Subtotal of cash outflows of financing activities 278259822 602681389
Net cash flow from financing activities -278259822 -602681389
60Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Sum of this period Sum of prior period
4. Influences of exchange rate fluctuation on cash and
cash equivalents
5. Net Increase in cash and cash equivalents 29766278 -419397299
Plus: Balance at the beginning of the period of cash
797907848988284544
and cash equivalents
6. Balance at the end of the period of cash and cash
827674126568887245
equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
61Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
7. Consolidated owner’s equities changing list
Unit: yuan
This period
Owner’s equities of the parent company
Item Other equity instruments Minus: Minority Total owner’s
Capital Capital Other Surplus
stock Preferred Perpetual
Treasury comprehensive Special General risk Undistributed equity equities
Others reserves reserves preparation profits
Others Subtotal
reserves
stock bonds stock income
1. Balance at the end of last year 671823900 482143547 70704426 -39714972 342732000 9232928370 10619208419 153346144 10772554563
Plus: Accounting policies
changing
Previous error correction
Others
2. Balance at the beginning of this
year 671823900 482143547 70704426 -39714972 342732000 9232928370 10619208419 153346144 10772554563
3. Increased or decreased amount in
this period (reducing amount is listed 7150483 13583338 -83132418 -76699563 5691747 -71007816
with “-”)
(1) Total comprehensive income 13583338 185597142 199180480 7004821 206185301
(2) Owner’s invested and reduced
capital 7150483 -7150483 -7150483
1. Owner’s invested common stock 7150483 -7150483 -7150483
2. Other equity instrument holders’
invested capital
3. Amount of shares paid and
reckoned in owner’s equities
4. Others
(3) Profit distribution -268729560 -268729560 -1313074 -270042634
1. Accrued surplus reserves
2. Accrued general risk preparation
3. Distribution to owners (or
shareholders) -268729560 -268729560 -1313074 -270042634
4. Others
(4) Internal transfer of owner’s
equities
1. Capital reserves transferred and
increased capital (or capital stock)
2. Surplus reserves transferred and
62Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
increased capital (or capital stock)
3. Surplus reserves covering deficit
4. Retained earnings carried over
from the benefit plan variation
5. Retained earnings carried over
from other comprehensive income
6. Others
(5) Special reserves
1. Withdrawal in this period
2. Usage in this period
(6) Others
4. Balance at the end of this period 671823900 482143547 77854909 -26131634 342732000 9149795952 10542508856 159037891 10701546747
Unit: yuan
Last period
Owner’s equities of the parent company
Item Other equity instruments
Capital Minus: Other General Minority equity
Total owner’s
Surplus
Capital stock Preferred Perpetual Treasury stock comprehensive
Special risk Undistributedreserves profits Others Subtotal
equities
Others reserves reserves
stock bonds income preparation
1. Balance at
the end of last 692249559 651086707 103411919 -14784677 342732000 9273629318 10841500988 149024807 10990525795
year
Plus:
Accounting
policies
changing
Previous error
correction
Other
2. Balance at
the beginning 692249559 651086707 103411919 -14784677 342732000 9273629318 10841500988 149024807 10990525795
of this year
3. Increased or
decreased
amount in this
period 24347496 147512204 -10069669 -124732862 -257967239 -1800174 -259767413
(reducing
amount is
63Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
listed with “-”)
(1) Total
comprehensive -10069669 221177382 211107713 -314434 210793279
income
(2) Owner’s
invested and
reduced 24347496 147512204 -123164708 -1102655 -124267363
capital
1. Owner’s
invested 150932125 -150932126 -150932126
common stock
2. Other equity
instrument
holders’
invested
capital
3. Amount of
shares paid
and reckoned 25146195 -3419921 28566117 28566117
in owner’s
equities
4. Others -798699 -798699 -1102655 -1901354
(3) Profit
distribution -345910244 -345910244 -383085 -346293329
1. Accrued
surplus
reserves
2. Accrued
general risk
preparation
3. Distribution
to owners (or -345910244 -345910244 -383085 -346293329
shareholders)
4. Others
(4) Internal
transfer of
owner’s
equities
1. Capital
reserves
transferred and
increased
capital (or
capital stock)
64Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
2. Surplus
reserves
transferred and
increased
capital (or
capital stock)
3. Surplus
reserves
covering
deficit
4. Retained
earnings
carried over
from the
benefit plan
amount
5. Retained
earnings
carried over
from other
comprehensive
income
6. Others
(5) Special
reserves
1. Accrual in
this period
2. Usage in
this period
(6) Other
4. Balance
at the end of 675434203 250924123 -24854346 342732000 9148896456 10583533749 147224633 10730758382
this period
65Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
8. Owner’s equities changing list of the parent company
Unit: yuan
This period
Item Other equity instruments
Capital stock Capital
Minus: Other
Treasury comprehensive Special Surplus Undistributed Total owner’sPreferred Perpetual Others reserves stock income reserves reserves profits
Others equities
stock bonds
1. Balance at the end of last year 671823900 519382073 70704426 342732000 9825895684 11289129231
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 671823900 519382073 70704426 342732000 9825895684 11289129231
3. Increased or decreased amount in this period
(reducing amount is listed with “-”) 7150483 -231349048 -238499531
(1) Total comprehensive income 37380512 37380512
(2) Owner’s invested and reduced capital 7150483 -7150483
1. Owner’s invested common stock 7150483 -7150483
2. Other equity instrument holder’s invested capital
3. Amount of shares paid and reckoned in owner’s
equities
4. Others
(3) Profit distribution -268729560 -268729560
1. Accrued surplus reserves
2. Distribution to owners (or shareholders) -268729560 -268729560
3. Others
(4) Internal transfer of owner’s equities
1. Capital reserves transferred and increased capital
(or capital stock)
2. Surplus reserves transferred and increased capital
(or capital stock)
3. Surplus reserves covering deficit
4. Retained earnings carried over from the benefit
plan amount
66Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
5. Retained earnings carried over from other
comprehensive income
6. Others
(5) Special reserves
1. Accrual in this period
2. Usage in this period
(6) Others
4. Balance at the end of this period 671823900 519382073 77854909 342732000 9594546636 11050629700
Unit: yuan
Last period
Other equity instruments
Item Minus: OtherCapital Special Surplus Undistributed Total owner’s
Capital stock Preferred Perpetual Treasury comprehensive Others
Others reserves reserves reserves profits equities
stock bonds stock income
113056553
1. Balance at the end of last year 692249559 687544350 103411919 342732000 9686541315
05
Plus: Accounting policies changing
Previous error correction
Others
113056553
2. Balance at the beginning of this year 692249559 687544350 103411919 342732000 9686541315
05
3. Increased or decreased amount in this period
(reducing amount is listed with “-”) 25128379 147512204 -188591773 -310975598
(1) Total comprehensive income 157318471 157318471
(2) Owner’s invested and reduced capital 25128379 147512204 -122383825
15093212
1. Owner’s invested common stock -150932126
５
2. Other equity instrument holder’s invested capital
3. Amount of shares paid and reckoned in owner’s -341992
equities 25146195 28566117１
67Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
4. Others -17816 -17816
(3) Profit distribution -345910244 -345910244
1. Accrued surplus reserves
2. Distribution to owners (or shareholders) -345910244 -345910244
3. Others
(4) Internal transfer of owner’s equities
1. Capital reserves transferred and increased capital
(or capital stock)
2. Surplus reserves transferred and increased capital
(or capital stock)
3. Surplus reserves covering deficit
4. Retained earnings carried over from the benefit
plan amount
5. Retained earnings carried over from other
comprehensive income
6. Other
(5) Special reserves
1. Accrual in this period
2. Usage in this period
(6) Others
109946797
4. Balance at the end of this period 692249559 712672729 250924123 342732000 9497949542
07
68Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
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”) with its assets and liabilities in relation
to wine business. The Company and its subsidiary companies (hereinafter collectively
referred to as the “Group”) are engaged in the production and sale of wine brandy and
sparkling wine planting and purchase of grapes development of tourism resources etc. The
registered address of the Company is Yantai City Shandong Province and the office address
of the headquarters is 56 Dama Road Zhifu District Yantai City Shandong Province.As at June 30 2025 the Company issued 671823900 shares accumulatively. Refer to Note
7.32 for details.
The parent company of the Group is Changyu Group incorporated in China which was
ultimately and actually controlled by four parties including Yantai Guofeng Investment
Holding Group Co. Ltd. ILLVA Saronno Holding Spa International Finance Corporation
and Yantai Yuhua Investment & Development Co. Ltd.The financial statement and the consolidated financial statement of the Company were
approved by the Board of Directors in August 26 2025.The details of scope of the consolidated financial statement in this period can be seen in Note
10 “Equity in other entities”.
4. Preparation basis of financial statement
1. Preparation basis
The Company prepares the financial statement on the basis of continuous operation.
2. Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30
2025 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
1. Statement on compliance with ASBE
This financial statement fulfills the requirement of Accounting Standards for Business
Enterprises (ASBE) issued by the Ministry of Finance and gives a true and integrated view of
the consolidated financial status and the financial status as at June 30 2025 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 2025.
69Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
In addition the financial statement of the Company also complies with the related disclosure
requirements for statement and its notes stipulated by Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on
Financial Reports (2014 Revision) by the China Securities Regulatory Commission
(hereinafter referred to as the “CSRC”).
2. Accounting period
The accounting year is from January 1 to December 31 in Gregorian calendar.
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.
4. Recording currency
Since Renminbi (RMB) is the currency of the main economic environment in which the
Company and the domestic subsidiary companies thereof are situated the Company and the
subsidiary companies thereof adopt RMB as the recording currency. The overseas subsidiary
companies thereof determine 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. Determination method and selection criteria for significant standards
Item Significant standards
Other significant payables / accounts Single of other payables / accounts payable with
payable with an aging of over 1 year an aging of over 1 year exceeding 0.5% of theGroup’s total liabilities
Single of construction in progress with the
Significant construction in progress carrying amount exceeding 0.5% of the Group’s
noncurrent assets
Non-wholly-owned subsidiary with the book value
Significant non-wholly-owned subsidiary of net assets attributable to minority shareholders
exceeding 0.5% of the Group’s net assets
Long-term equity investment in a single joint
Significant joint venture or associate venture or associate with a carrying amount
exceeding 0.5% of the Group’s net assets
Significant cash flows from investing Single of cash flows with the amount exceeding
activities 0.5% of the Group’s total assets
6. Accounting treatment method for business combination under common control and
non-common control
If the Group obtains control over one or more enterprises (or a group of assets or net assets) and
such transaction or event constitutes a business it shall be accounted for as a business
combination. Business combinations are classified into business combination under common
70Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
control and business combination under non-common control.For a business combination not under common control when assessing whether the acquired set
of assets or net assets constitutes a business the acquirer may consider applying the
“concentration test” as a simplified assessment. If the acquired set passes the concentration test it
shall be determined not to constitute a business. If it does not pass the concentration test it shall
be assessed against the business criteria.When the Group acquires a set of assets or net assets that does not constitute a business the
acquisition cost shall be allocated to the identifiable assets and liabilities acquired at their relative
fair values on the acquisition date rather than applying the accounting treatment for a business
combination.
(1) Business combination 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 Group’s share of carrying
amount of the net assets acquired and the carrying amount of the combination consideration
paid (or the total par value of the shares issued) the deficit shall be applied in sequence
against the surplus reserve and then the undistributed profits. If the stock premium in capital
surplus is not sufficient to offset the deficit shall be applied in sequence against the surplus
reserve and then the undistributed profits. The direct related expenses incurred for the
business combination shall be included in the current profit and loss when incurred. The
combination date is the date on which the combining party actually obtains control of the
combined party.
(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 shall deduct the fair value of the acquiree’s
identifiable net assets acquired in the combination on the acquisition date. After considering
the effect of related deferred income taxes if the difference is positive it shall be recognized
as goodwill; and if it is negative it shall be included in the current profit and loss. The direct
expenses incurred for the business combination by the Group shall be included in the current
profit and loss. All the identifiable assets liabilities and contingent liabilities which are
obtained from the acquiree and meet the recognition conditions shall be confirmed by the
Group on the acquisition date according to the fair value thereof. The acquisition date is the
date on which the acquirer actually obtains control of the acquiree.For a business combination involving entities not under common control and achieved in
71Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
stages the Group re-measures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognizes any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. Other comprehensive income and other changes in owner’s equities that can be
reclassified into profit or loss under the equity method of accounting for the equity interest of
the acquiree held before acquisition date shall be transferred to current investment income on
the purchase date; and if equity interests of the acquiree held before acquisition date are
equity instrument investments measured at fair value with changes recognized in other
comprehensive income other comprehensive income recognized before acquisition date shall
be transferred to retained earnings on acquisition date.
7. Determination standard of control and compiling methods of consolidated financial
statement
(1) General principles
The consolidation scope of the consolidated financial statements is determined based on
control including the Company and its controlled subsidiaries. Control refers to the Group’s
power over the investee enjoying variable returns through participation in related activities
of the investee and having the ability to use its power over the investee to influence its return
amount. When determining whether the Group has power over the investee the Group only
considers substantive rights related to the investee (including substantive rights enjoyed by
the Group itself and other parties). The financial condition operating performance and cash
flows of the subsidiaries shall be included in the consolidated financial statements from the
date of control to the date of control termination.The equity profit and loss and total comprehensive income attributable to minority
shareholders of the subsidiaries shall be separately presented in the shareholders’ equity
section of the consolidated balance sheet and the net profit and total comprehensive income
section of the consolidated profit statement.If the current losses shared by minority shareholders of the subsidiaries exceed their share of
the subsidiaries’ initial owner’s equity the balance shall still be offset against the minority
equity.When the accounting period or accounting policies of a subsidiary are different from those of
the Company the Company has made necessary adjustments to the financial statements of
the subsidiary based on the Company’s own accounting period or accounting policies. All
intra-group transactions and balances during the combination including unrealized
intra-group transactions gains and losses have been offset. If there is evidence that unrealized
losses incurred in intra-group transactions are related to impairment losses of assets the full
amount of such losses shall be recognized.
(2) Subsidiaries acquired through a business combination
Where a subsidiary is acquired through a business combination involving entities under
common control when preparing the consolidated financial statements for current period
based on the carrying amounts of the assets and liabilities of the combined subsidiary in the
financial statements of the ultimate controlling party the combined subsidiary shall be
72Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
deemed to be included in the consolidation scope of the Company when the ultimate
controlling party of the Company begins to exercise control over it and the initial balance
and the comparative figures of the consolidated financial statements shall be correspondingly
adjusted.Where a subsidiary is acquired through a business combination involving entities not under
common control when preparing the consolidated financial statements for current period
based on the fair value of identifiable assets and liabilities of the acquired subsidiary
determined on the acquisition date the acquired subsidiary shall be included in the
consolidation scope of the Company from the acquisition date.
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary any resulting disposal gains or losses are
recognized as investment income for the current period. The remaining equity investment is
re-measured at its fair value at the date when control is lost any resulting gains or losses are
also recognized as investment income for the current period.When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;
- one arrangement considered on its own is not economically justified but it is
economically justified when considered together with other arrangements.If each of the multiple transactions does not form part of a bundled transaction the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in
subsidiaries where control is retained.If each of the multiple transactions forms part of a bundled transaction each transaction shall
be treated as a transaction for disposing of the existing subsidiary and losing control. The
difference between the disposal price and the net carrying value of the subsidiary that is
continuously calculated from the acquisition date corresponding to the disposal investment
before losing control shall be included in other comprehensive income in the consolidated
financial statements and be transferred when losing control to profit or loss of the period
losing control.
(4) Changes in minority equity
The difference between the cost of long-term equity investment acquired by the Company
73Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
through the purchase of minority equity and the net asset share of the subsidiary calculated
based on the newly increased shareholding ratio as well as the difference between the
disposal price obtained from partial disposal of equity investment in the subsidiary without
losing control and the net asset share of the subsidiary corresponding to the disposal of
long-term equity investment shall be adjusted to the capital reserve (share premium) in the
consolidated balance sheet. And if the capital reserve (share premium) is insufficient to
offset the deficit shall be applied in sequence against the surplus reserve and then the
undistributed profits.
8. Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be used for payment at
any time and short-term highly liquid investments which are readily convertible into known
amount of cash with an insignificant risk of changes in value.
9. Foreign currency transaction and foreign currency statement translation
When the Group receives capital in foreign currencies from investors the capital is translated
to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency
transactions are on initial recognition translated to Renminbi at the spot exchange rates.Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognized in current profit or loss unless they arise from the re-translation of the principal
and interest of specific borrowings for the acquisition and construction of qualifying assets.Non-monetary items that are measured at historical cost in foreign currencies are translated to
Renminbi using the exchange rate at the transaction date.In translating the financial statements of a foreign operation assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items excluding undistributed profit and the translation differences in other
comprehensive income are translated to Renminbi at the spot exchange rates at the
transaction date. Income and expenses in the income statement are translated to Renminbi at
the spot exchange rates at the transaction date. The resulting translation differences generated
by the above conversion are recognized in other comprehensive income. The translation
differences accumulated in other comprehensive income with respect to a foreign operation
are transferred to profit or loss in the period when the foreign operation is disposed.
10. 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 lease
receivables payables loans and borrowings and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognized in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.
74Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
A financial asset (unless it is a trade receivable without a significant financing component)
and financial liability is measured initially at fair value. For financial assets and financial
liabilities at fair value through profit or loss any related directly attributable transaction costs
are charged to profit or loss; for other categories of financial assets and financial liabilities
any related attributable transaction costs are included in their initial costs. Accounts
receivable containing no significant financing component or not considering financing
component of contracts that do not exceed one year are measured initially at transaction
prices determined by the accounting policies set out in Note 5.22.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets of this Group
The classification of financial assets is generally based on the business model in which a
financial asset is managed and its contractual cash flow characteristics. On initial recognition
a financial asset is classified as measured at amortized cost at fair value through other
comprehensive income (“FVOCI”) or at fair value through profit or loss (“FVTPL”).Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets in which case all affected financial
assets are reclassified on the first day of the first reporting period following the change in the
business model.A financial asset is measured at amortized cost if it meets both of the following conditions
and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.A debt investment is measured at FVOCI if it meets both of the following conditions and is
not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.On initial recognition of an equity investment that is not held for trading the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an investment-by-investment basis. The
instrument meets the definition of equity from the perspective of the issuer.All financial assets not classified as measured at amortized cost or FVOCI as described above
are measured at FVTPL. On initial recognition the Group may irrevocably designate a
financial asset that otherwise meets the requirements to be measured at amortized cost or at
75Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.The business model refers to how the Group manages its financial assets in order to generate
cash flows. That is the Group’s business model determines whether cash flows will result
from collecting contractual cash flows selling financial assets or both. The Group determines
the business model for managing the financial assets according to the facts and based on the
specific business objective for managing the financial assets determined by the Group’s key
management personnel.In assessing whether the contractual cash flows are solely payments of principal and interest
the Group considers the contractual terms of the instrument. For the purposes of this
assessment ‘principal’ is defined as the fair value of the financial asset on initial recognition.‘Interest’ is defined as consideration for the time value of money and for the credit risk
associated with the principal amount outstanding during a particular period of time and for
other basic lending risks and costs as well as a profit margin. The Group also assesses
whether the financial asset contains a contractual term that could change the timing or
amount of contractual cash flows such that it would not meet this condition.(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses
including any interest or dividend income are recognized in profit or loss unless the financial
assets are part of a hedging relationship.- Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method.A gain or loss on a financial asset that is measured at amortized cost and is not part of a
hedging relationship shall be recognized in profit or loss when the financial asset is
derecognized and reclassified through the amortization process or in order to recognize
impairment gains or losses.- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the
effective interest method impairment and foreign exchange gains and losses are recognized
in profit or loss. Other net gains and losses are recognized in other comprehensive income.On derecognition gains and losses accumulated in other comprehensive income are
reclassified to profit or loss.- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income in
profit or loss. Other net gains and losses are recognized in other comprehensive income. On
76Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
derecognition gains and losses accumulated in other comprehensive income are reclassified
to retained earnings.
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortized cost by the Group.- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses including any interest expense are recognized in profit or loss unless the financial
liabilities are part of a hedging relationship.- Financial liabilities at amortized cost
These financial liabilities are subsequently measured at amortized cost using the effective
interest method.
(4) Offsetting
Financial assets and financial liabilities are generally presented separately in the balance
sheet and are not offset. However a financial asset and a financial liability are offset and the
net amount is presented in the balance sheet when both of the following conditions are
satisfied:
- The Group currently has a legally enforceable right to set off the recognized amounts；
- The Group intends either to settle on a net basis or to realize the financial asset and settle
the financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognized when one of the following conditions is met:
- the contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or
- the financial asset has been transferred although the Group neither transfers nor
retains substantially all of the risks and rewards of ownership of the financial asset it does
not retain control over the transferred asset.Where a transfer of a financial asset in its entirety meets the criteria for derecognition the
difference between the two amounts below is recognized in current profit or loss:
77Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and when the transferred
financial asset is a debt investment at FVOCI any cumulative gain or loss that has been
recognized directly in other comprehensive income for the part derecognized.The Group derecognizes a financial liability (or part of it) only when its contractual
obligation (or part of it) is extinguished.
(6) Impairment
The Group recognizes loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortized cost;
- financial investments at fair value through other comprehensive income.Financial assets measured at fair value including debt investments or equity securities at
FVPL equity securities designated at FVOCI and derivative financial assets are not subject
to the ECL assessment.Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity
in accordance with the contract and the cash flows that the Group expects to receive).The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.ECLs within the next 12 months refers to the ECLs that may occur due to a financial
instrument default event within 12 months after the balance sheet date (if the expected
duration of the financial instrument is less than 12 months it is within the expected duration)
and is a part of the ECLs for the entire duration.For bills receivable accounts receivable accounts receivable financing generated from daily
business activities such as selling goods and providing services loss allowance always
measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated
using a provision matrix based on the Group’s historical credit loss experience adjusted for
factors that are specific to the debtors and an assessment of both the current and forecast
general economic conditions at the balance sheet date.For assets other than bills receivable accounts receivable accounts receivable financing that
meet one of the following conditions loss allowance are measured at an amount equal to
12-month ECLs. For all other financial instruments the Group recognizes a loss allowance
78Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
or
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.Bad debt provision for accounts receivable
(a) Combination categories and determination criteria for bad debt provision based on credit
risk characteristics
According to the different credit risk characteristics of the acceptor the Group
Bills receivable divides bills receivable into two combinations: bank acceptance bills and
commercial acceptance bills.Based on the historical experience of this Group there is no significant
Accounts difference in the occurrence of losses among different segmented customer
receivable groups. Therefore this Group considers all accounts receivable as a combinationand does not further differentiate between different customer groups when
calculating the bad debt provision for accounts receivable.Accounts The accounts receivable financing of this Group is for accounts receivable bank
receivable acceptance bills with dual holding purposes. Due to the fact that the accepting
financing banks are all banks with high credit ratings this Group considers all accountsreceivable financing as a combination.The other receivables of this Group mainly include deposits receivable and
Other security deposits. Based on the nature of accounts receivable and the credit risk
receivables characteristics of different counterparties the Group divides other accountsreceivable into two combinations namely: combination of deposits receivable
and security deposits and combination of other accounts receivable.(b) Determination criteria for single provision of bad debt reserves based on individual
provision
For bills receivable accounts receivable accounts receivable financing and other accounts
receivable the Group usually measures its loss provision based on a combination of credit
risk characteristics. If the credit risk characteristics of a counterparty are significantly
different from those of other counterparties in the portfolio or if there is a significant change
in the credit risk characteristics of that counterparty a separate provision for loss shall be
made for accounts receivable from that counterparty. For example when a counterparty
experiences serious financial difficulties and the ECL rate of accounts receivable from that
counterparty is significantly higher than the ECL rate of its aging range a separate provision
for loss shall be made for it.Financial instruments that have low credit risk
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.
79Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since
initial recognition the Group assesses whether the credit risk of a financial instrument has
increased significantly since initial recognition by comparing the risk of default at the
balance sheet date with that at the date of initial recognition.When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating ECL the Group considers reasonable and
supportable information that is relevant and available without undue cost or effort including
forward-looking information. In particular the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument’s external or
internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological market economic or legal environment
that have a significant adverse effect on the debtor’s ability to meet its obligation to the
Group.The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than 30 days past due.Credit-impaired financial assets
At each balance sheet date the Group assesses whether financial assets carried at amortized
cost and debt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’
when one or more events that have a detrimental impact on the estimated future cash flows of
the financial asset have occurred. Evidence that a financial asset is credit-impaired includes
the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty the
Group having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganization; or
- the disappearance of an active market for that financial asset because of financial
difficulties.Presentation of allowance for ECL
ECLs are re-measured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is recognized
as an impairment gain or loss in profit or loss. The Group recognizes an impairment gain or
loss for all financial instruments with a corresponding adjustment to their carrying amount
80Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
through a loss allowance account except for debt investments that are measured at FVOCI
for which the loss allowance is recognized in other comprehensive income.Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of
amounts due.Subsequent recoveries of an asset that was previously written off are recognized as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
(7) Equity instrument
The consideration received from the issuance of equity instruments is recognized in
shareholders’ equity at the actual issue price with the related transaction costs deducted from
shareholders’ equity (capital reserve). And if the capital reserve (share premium) is
insufficient to offset the deficit shall be applied in sequence against the surplus reserve and
then the undistributed profits. Consideration and transaction costs paid by the Company for
repurchasing self-issued equity instruments are deducted from shareholders’ equity.When the Company repurchases its own shares those shares are treated as treasury shares.All expenditure relating to the repurchase is recorded in the cost of the treasury shares with
the transaction recording in the share register. Treasury shares are excluded from profit
distributions and are presented as a deduction under shareholders’ equity in the balance sheet.Upon the cancellation of treasury shares share capital shall be reduced by the total par value
of the shares cancelled. Where the cost of the treasury shares exceeds their total par value the
excess shall be applied in sequence against the capital reserve (share premium) the surplus
reserve and then the undistributed profits. Where the cost of the treasury shares is lower than
their total par value the shortfall shall be credited to the capital reserve (share premium).
11. Inventories
(1) Inventory categories
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 labor costs and an appropriate allocation of production
overheads.Agricultural products harvested are reported in accordance with the Accounting Standard for
81Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Business Enterprises No. 1 - Inventories.
(2) Measurement method for issues
Cost of inventories is calculated using the weighted average method.
(3) Inventory count system
The Group maintains a perpetual inventory system.
(4) Amortization method for low-value consumables and packaging materials
Consumables including low-value consumables and packaging materials are amortized when
they are used. The amortization charge is included in the cost of the related assets or
recognized in profit or loss for the current period.
(5) Basis for determining the net realizable value and method for provision for obsolete
inventories
At the balance sheet date inventories are carried at the lower of cost and net realizable value.Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and relevant
taxes. The net realizable value of materials held for use in the production is measured based
on the net realizable value of the finished goods in which they will be incorporated. The net
realizable value of the inventory held to satisfy sales or service contracts is measured based
on the contract price to the extent of the quantities specified in sales contracts and the excess
portion of inventories is measured based on general selling prices.Any excess of the cost over the net realizable value of each item of inventories is recognized
as a provision for impairment and is recognized in profit or loss.
(4) Inventory count system
The Group maintains a perpetual inventory system.
12. Long-term equity investments
(1) Investment cost determination 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
82Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
reserve with any deficit applied in sequence against the surplus reserve and then the
undistributed profits. For a long-term equity investment in a subsidiary acquired through a
business combination achieved in stages which do not form a bundled transaction and
involving entities under common control the Company determines the initial cost of the
investment in accordance with the above policies. The difference between this initial cost and
the sum of the carrying amount of previously-held investment and the consideration paid for
the shares newly acquired is adjusted to capital premium in the capital reserve with any
deficit applied in sequence against the surplus reserve and then the undistributed profits .- For a long-term equity investment obtained through a business combination not involving
enterprises under common control the initial cost comprises the aggregate of the fair value of
assets transferred liabilities incurred or assumed and equity securities issued by the
Company in exchange for control of the acquiree. For a long-term equity investment
obtained through a business combination not involving entities under common control and
achieved through multiple transactions in stages which do not form a bundled transaction the
initial cost comprises the carrying amount of the previously-held equity investment in the
acquiree immediately before the acquisition date and the additional investment cost at the
acquisition date.(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is
initially recognized at the amount of cash paid if the Group acquires the investment by cash
or at the fair value of the equity securities issued if an investment is acquired by issuing
equity securities.
(2) Subsequent measurement and profit and loss recognition methods 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
recognizes its share of the cash dividends or profit distributions declared by the investee as
investment income for the current period.The investments in subsidiaries are stated in the balance sheet at cost less impairment losses.For the impairment testing method and impairment provision method of the investments in
subsidiaries refer to Note 5.21.In the Group’s consolidated financial statements subsidiaries are accounted for in accordance
with the policies described in Note 5.6.
83Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
(b) Investments in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control and
rights to the net assets of the arrangement.An associate is an enterprise the Group can exert significant influence on.A long-term equity investment in a joint venture and associate is accounted for using the
equity method for subsequent measurement unless the investment is classified as held for
sale.The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest in the
fair value of the investee’s identifiable net assets at the date of acquisition the investment is
initially recognized at cost. Where the initial investment cost is less than the Group’s interest
in the fair value of the investee’s identifiable net assets at the date of acquisition the
investment is initially recognized at the investor’s share of the fair value of the investee’s
identifiable net assets and the difference is recognized in current profit or loss.- After the acquisition of the investment in joint ventures and associates the Group
recognizes its share of the investee’s profit or loss and other comprehensive income as
investment income or losses and other comprehensive income respectively and adjusts the
carrying amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions the carrying amount of the investment is reduced by the
amount attributable to the Group. Changes in the Group’s share of the investee’s owners’
equity other than those arising from the investee’s net profit or loss other comprehensive
income or profit distribution (referred to as “other changes in owners’ equity”) is recognized
directly in the Group’s equity and the carrying amount of the investment is adjusted
accordingly.- In calculating its share of the investee’s net profits or losses other comprehensive income
and other changes in owners’ equity the Group recognizes investment income and other
comprehensive income after making appropriate adjustments to align the accounting policies
or accounting periods with those of the Group based on the fair value of the investee’s
identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from
transactions between the Group and its associates or joint ventures are eliminated to the
extent of the Group’s interest in the associates or joint ventures. Unrealized losses resulting
from transactions between the Group and its associates or joint ventures are eliminated in the
same way as unrealized gains but only to the extent that there is no impairment.- The Group discontinues recognizing its share of further losses of the investee after the
84Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
carrying amount of the long-term equity investment and any long-term interest that in
substance forms part of the Group’s net investment in the associate is reduced to zero except
to the extent that the Group has an obligation to assume additional losses. If the joint venture
or the associate subsequently reports net profits the Group resumes recognizing its share of
those profits only after its share of the profits equals the share of losses not recognized.For the impairment testing method and impairment provision method of the investments in
joint ventures and associates of this Group refer to Note 5.21.
(3) Criteria for determining the existence of joint control and significant impact 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.
13. 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 amortization and
impairment losses and adopts a depreciation or amortization policy for the investment
property which is consistent with that for buildings or land use rights unless the investment
property is classified as held for sale. For the impairment testing method and impairment
provision method refer to Note 5.21.Category Useful life (years) Residual value rate Annual depreciation(%) rate (%)
Plant and buildings 20-40 years 0-5% 2.4%-5.0%
85Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
14. Fixed assets
(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 initial cost of a purchased fixed asset comprises the purchase price related taxes and
any attributable expenditure for bringing the asset to working condition for its intended use.The initial cost of self-constructed fixed assets is measured in accordance with the policy set
out in Note 5.15.Where the parts of an item of fixed assets have different useful lives or provide benefits to the
Group in a different pattern thus necessitating use of different depreciation rates or methods
each part is recognized as a separate fixed asset.For any subsequent cost of fixed assets including the cost of replacing part of an item of
fixed assets when it is probable that the economic benefits associated with the costs will flow
to the Group it shall be capitalized and included in the cost of fixed assets and the carrying
amount of the replaced part is derecognized meanwhile; and the costs related to the
day-to-day maintenance of fixed assets shall be recognized in current profit or loss as
incurred.Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
(2) Depreciation of fixed assets
The cost of a fixed asset less its estimated residual value and accumulated impairment losses
is depreciated using the straight-line method over its estimated useful life unless the fixed
asset is classified as held for sale.The useful lives residual value rates and annual depreciation rates of each class of fixed
assets are as follows:
Class Useful life (years) Residual value rate Annual 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
86Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
year-end.
(3) For impairment testing method and impairment provision method refer to Note 5.21.
(4) Disposal of fixed assets
The Group will derecognize of a fixed asset when meeting one of the following conditions:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying amount of
the item and are recognized in profit or loss on the date of retirement or disposal.
15. Construction in progress
The cost of self-constructed fixed assets includes the cost of materials direct labor
capitalized borrowing costs and necessary costs attributable to bringing the asset to working
condition for its intended use.A self-constructed fixed asset is classified as construction in progress and transferred to fixed
asset when it is ready for its intended use. No depreciation is provided against construction in
progress.Criteria and timing for transfer of construction in progress to fixed assets
Category Criteria and Timing for Transfer to fixed assets
(1) The main construction and supporting works have been
substantially completed; (2) The construction meets the design
specifications and has passed inspections by the surveying
design construction and supervision and other institutions; (3)
Buildings and Acceptance inspections have been completed by external
Structures authorities such as fire safety land and planning departments;(4) If the construction reaches the intended usable condition
but the completion settlement has not yet been finalized it
shall be transferred to fixed assets from the date it reaches the
intended usable condition based on the estimated construction
cost.Machinery and (1) Relevant equipment and other supporting facilities have
Equipment been fully installed; (2) The equipment has been tested and can
maintain normal and stable operation over a period of time; (3)
87Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
The production equipment can produce qualified products
consistently over a period of time; (4) The equipment has been
accepted by asset management personnel and users.Construction in progress is stated in the balance sheet at cost less impairment losses (see
Note 5.21).If an enterprise sells products or by-products produced by fixed assets before they reach their
intended usable state to the outside parties in accordance with the provisions of Accounting
Standards for Business Enterprises No. 14 – Revenue and Accounting Standards for Business
Enterprises No. 1 – Inventories relevant income and costs shall be accounted for separately
and included in profit or loss for the current period.
16. Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction or
production of a qualifying asset are capitalized as part of the cost of the asset. Other
borrowing costs are recognized as financial expenses when incurred.During the capitalization period the amount of interest (including amortization of any
discount or premium on borrowing) to be capitalized in each accounting period is determined
as follows:
- Where funds are borrowed specifically for the acquisition and construction or production
of a qualifying asset the amount of interest to be capitalized is the interest expense calculated
using effective interest rates during the period less any interest income earned from
depositing the borrowed funds or any investment income on the temporary investment of
those funds before being used on the asset.- To the extent that the Group borrows funds generally and uses them for the acquisition
and construction or production of a qualifying asset the amount of borrowing costs eligible
for capitalization is determined by applying a capitalization rate to the weighted average of
the excess amounts of cumulative expenditure on the asset over the above amounts of
specific borrowings. The capitalization rate is the weighted average of the interest rates
applicable to the general-purpose borrowings.The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or when appropriate a shorter period to
the initially recognized amount of the borrowings.During the capitalization period exchange differences related to the principal and interest on
a specific-purpose borrowing denominated in foreign currency are capitalized as part of the
88Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
cost of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognized as a
financial expense when incurred.The capitalization period is the period from the date of commencement of capitalization of
borrowing costs to the date of cessation of capitalization excluding any period over which
capitalization is suspended. Capitalization of borrowing costs commences when expenditure
for the asset is being incurred borrowing costs are being incurred and activities of
acquisition construction or production that are necessary to prepare the asset for its intended
use are in progress and ceases when the assets become ready for their intended use.Capitalization of borrowing costs should cease when the qualifying asset being constructed or
produced has reached its expected usable or saleable condition. Capitalization of borrowing
costs is suspended when the acquisition construction or production activities are interrupted
abnormally for a period of more than three months.
17. Biological assets
The biological assets of the Group are productive biological assets.Productive biological assets are biological assets held for the purposes of producing
agricultural produce rendering of services or rental. Productive biological assets in the Group
are vines. Productive biological assets are initially measured at cost. The cost of self-grown
or self-bred productive biological assets represents the necessary attributable expenditure
incurred before satisfying the expected production and operating purpose including
capitalized borrowing costs.Productive biological assets after reaching the expected production and operating purpose
are depreciated using the straight-line method over its useful life. The useful lives estimated
net residual value rates and annual depreciation rates of productive biological assets are as
follows:
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 residential value by considering the
normal producing life of the productive biological assets.Useful lives estimated residual values and depreciation methods of productive biological
assets are reviewed at least at each year-end. Any changes should be treated as changes in
accounting estimates.For a productive biological asset that has been sold damaged dead or destroyed any
difference between the disposal proceeds and the carrying amount of the asset (after tax
89Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
deduction) should be recognized in profit or loss for the period in which it arises.
18. Intangible assets
Service life and amortization method
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where
the estimated useful life is finite) and impairment losses (see Note 5.21). For an intangible
asset with finite useful life its cost estimated less residual value and accumulated impairment
losses is amortized on the straight-line method over its estimated useful life unless the
intangible asset is classified as held for sale.The respective service life determination basis and amortization method for intangible
assets are as follows:
Item Service life (years) Determination basis Amortization method
Land use rights 40 – 50 years Period of land use rights Straight-line method
The shorter one of software
Software licenses 5 – 10 years service life or expected Straight-line method
service life
The shorter one of duration
Trademark rights 10 years of trademark rights or Straight-line method
expected service life
The useful life and amortization method of intangible assets with limited useful life are
reviewed at least at each year-end.An intangible asset is regarded as having an indefinite useful life and is not amortized when
there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group. At the balance sheet date the Group had intangible assets
with infinite useful lives including the land use rights and trademarks. Land use rights with
infinite useful lives are permanent land use rights with permanent ownership held by the
Group under the relevant Chile and Australian laws arising from the Group’s acquisition of
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
amortization. The right to use trademark refers to the trademark held by the Group arising
from the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate
with infinite useful lives. The valuation of trademark was based on the trends in the market
and competitive environment product cycle and managing long-term development strategy.Those bases indicated the trademark will provide net cash flows to the Group within an
uncertain period. The useful life is indefinite as it was hard to predict the period that the
trademark would bring economic benefits to the Group.
19. Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s
90Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.Goodwill is not amortized and is stated in the balance sheet at cost less accumulated
impairment losses (see Note 5.21). On disposal of an asset group or a set of asset groups any
attributable goodwill is written off and included in the calculation of the profit or loss on
disposal.
20. Long-term deferred expenses
The Group recognizes expenses that have been incurred and whose benefit period exceeds
one year as long-term deferred expenses.Long-term deferred expenses are amortized using a straight-line method within the benefit
period. The respective amortization periods for such expenses are as follows:
Item Amortization period
Land requisition fee 50 years
Greening fee 5-20 years
Renovation fee 3-5 years
Others 3 years
21. 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
- construction in progress
- right-of-use assets
- intangible assets
- productive biological asset
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses etc.If any indication exists the recoverable amount of the asset is estimated. In addition the
Group estimates the recoverable amounts of goodwill and intangible assets with infinite
useful lives at each year-end irrespective of whether there is any indication of impairment.
91Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Goodwill is allocated to each asset group or set of asset groups that is expected to benefit
from the synergies of the combination for the purpose of impairment testing.The recoverable amount of an asset (or asset group set of asset groups) is the higher of its
fair value (see Note 5.21) less costs to sell and its present value of expected future cash
flows.An asset group is composed of assets directly related to cash-generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.The present value of expected future cash flows of an asset is determined by discounting the
future cash flows estimated to be derived from continuing use of the asset and from its
ultimate disposal to their present value using an appropriate pre-tax discount rate.An impairment loss is recognized in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognized
accordingly. Impairment losses related to an asset group or a set of asset groups are allocated
first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset
groups and then to reduce the carrying amount of the other assets in the asset group or set of
asset groups on a pro rata basis. However such allocation would not reduce the carrying
amount of an asset below the highest of its fair value less costs to sell (if measurable) its
present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized it is not reversed in a subsequent period.
22. 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.
23. Estimated liabilities
If the obligation related to contingencies is a current obligation undertaken by the Group and
the performance of such obligation is likely to result in the outflow of economic benefits
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from the Group and the relevant amount can be reliably measured the Group will recognize
the estimated liability.The estimated liabilities are initially measured based on the best estimate of the expenses
required to fulfill the relevant current obligations. For assets that have a significant impact on
the time value of money the estimated liability is determined by discounting the estimated
future cash flows. When determining the best estimate the Group takes into account factors
such as risks uncertainties and time value of money related to contingencies. If the required
expenditure exists a continuous range and the likelihood of various outcomes occurring
within this range is the same the best estimate is determined based on the median value
within this range; and in other cases the best estimate is handled as follows:
- If the contingency involves a single item it shall be determined based on the most likely
amount to occur.- If the contingency involves multiple items it shall be determined based on various
possible outcomes and related probabilities.The Group reviews the carrying amount of estimated liabilities on the balance sheet date and
adjusts the carrying amount based on the current best estimate.
24. Share-based payment
(1) Type of share-based payment
The share-based payment of this Group is equity-settled share-based payment.
(2) Accounting treatment related to implementing share-based payment plan
- Equity-settled share-based payment
When the Group exchanges shares or other equity instruments for employee services the
equity instruments granted to employees shall be measured at fair value on the grant date. For
share-based payment transactions that are immediately exercisable upon grant the Group
recognizes the fair value of equity instruments as relevant costs or expenses on the grant date
and increases capital reserves accordingly. For share-based payment transactions that can
only be exercised after completing the vesting period for services or meeting the prescribed
performance conditions after the grant the Group will make the best estimate of the number
of feasible equity instruments on each balance sheet date during the vesting period based on
subsequent information such as changes in the number of feasible employees. Based on this
the services obtained in the current period will be included in relevant costs or expenses
according to the fair value of the equity instruments on the grant date and correspondingly
included in capital reserves.When the Group accepts services but does not have settlement obligations and the equity
instruments granted to employees are those of the ultimate controlling party of the Company
or its controlled subsidiaries other than the Group the Group will treat this share-based
payment plan as a share-based payment for equity settlement.
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25. Revenue
Revenue refers to the gross inflow of economic benefits formed during the course of the
ordinary activities of the Group which may increase the shareholders’ equities and is
irrelevant to the invested capital of the shareholders.The Group recognizes the revenue upon fulfillment of its performance obligations in the
contract that is the client obtains control right over the relevant goods or services.If there are two or more performance obligations under the contact which shall be fulfilled
the Group will apportion the transaction price to various individual performance obligations
in accordance with the relative proportion of separate selling prices of various goods or
services under these performance obligations on the commencement date of the contract and
measure and recognize the revenue in accordance with the transaction prices apportioned to
various individual performance obligations. The stand-alone selling price refers to the price at
which the Group sells goods or provides services to customers separately. If the stand-alone
selling price cannot be directly observed the Group comprehensively considers all the
relevant information that can be reasonably obtained and uses observable input values to the
greatest extent to estimate the stand-alone selling price.For contracts with quality assurance clauses the Group analyzes the nature of the quality
assurance provided. If quality assurance provides a separate service in addition to ensuring to
the client that the goods sold meet the established standards the Group will treat it as an
individual performance obligation. Otherwise the Group conducts accounting treatment in
accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.The transaction price refers to the amount of consideration that the Group expects to be
entitled to receive due to the transfer of goods or services to the client excluding payments
received on behalf of third parties. The transaction price recognized by the Group does not
exceed the amount at which the accumulated recognized revenue will most likely not undergo
a significant reversal when the relevant uncertainty is eliminated. In the event that there is a
significant financing part in the contract the Group determines the transaction price based on
the amount payable in cash when the client obtains control right over the relevant goods or
services. The difference between the transaction price and the contract consideration shall be
amortized by the effective interest method during the contract period. From the day of the
enforcement of the contract the Group expects that the interval between the client's
acquisition of control right over the goods or services and the client’s payment of the price
will not exceed one year regardless of the significant financing part in the contract.If the Group meets one of the following conditions the fulfillment of its performance
obligations in a certain period will be deemed or the fulfillment of its performance
obligations at a certain time point will be deemed:
- The client obtains and consumes the economic benefits while the Group fulfills the
performance obligation;
- The client manages to control the goods in process while the Group fulfills the
performance obligation.- Goods produced during the performance period have irreplaceable purposes and the
94Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Group is entitled to charge money for the performance accumulated and has been finished
until the current time within the whole contract period.For any performance obligations fulfilled in a certain period the Group will recognize
revenue within the certain period in accordance with the performance progress. If the
performance progress cannot be determined reasonably and costs incurred are expected to be
compensated of the Group the revenue will be ascertained according to the costs incurred
until the performance progress is determined reasonably.In terms of performance obligations fulfilled at a certain time point the Group will recognize
revenue when the client gains control right over the relevant goods or services. When it
comes to determining whether a client has acquired the control right over goods or services
the Group will consider the following conditions:
- The Group has the current right to receive payment for the goods or services;
- The Group has transferred the goods in kind to the client;
- The Group has transferred the legal ownership of the product or the main risks and
rewards of ownership to the client;
- The client has accepted the goods or services etc.For sales with sales return clauses when the customer obtains control of the relevant goods
the Group recognizes revenue based on the amount of consideration expected to be entitled to
receive due to the transfer of goods to the customer (that is does not include the expected
amount to be refunded due to sales return) and recognizes liabilities based on the expected
amount to be refunded due to sales returns. At the same time based on the book value at the
time of transfer of the goods expected to be returned the Group recognizes as an asset the
balance after deducting the estimated cost of recovering the goods (including the value
impairment of the returned goods). Based on the book value of the transferred goods at the
time of transfer the Group carries over as the cost the net amount after deducting the above
asset cost. On each balance sheet date the Group re-estimates the future sales returns. If there
is any change it shall be treated as a change in accounting estimates.The Group has transferred the goods or services to the client and thus has the right to receive
corresponding consideration (and the right is dependable on factors other than time lapses) as
contract asset which is subject to provision of impairment on the basis of expected credit
loss. The right enjoyed by the Group (only depends on time lapses) to receive consideration
unconditionally from the client shall be presented under account receivables. The Group
presents the obligation of transferring goods or services for the client due to the consideration
received or receivable as contract liabilities.The specific accounting policies related to the main activities of the Group’s revenue are
described as follows:
The Group’s sales revenue mainly comes from dealer sales. The revenue will be recognized
when the Group transfers control of the related products to the customer. According to the
business contract for these transfers the time when the product is confirmed and signed by
the customer shall be recognized as the confirming point of the sales revenue.
95Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
26. Contract cost
Contract cost includes incremental cost for being awarded the contract and performance cost
of the contract.Incremental cost for being awarded the contract refers to the cost that the Group would not
need to pay if no such contracts are awarded (e.g. sales commissions etc.) Where such cost is
expected to be recovered the Group shall take it as the contract acquisition cost and
recognize it as an asset. Expenses incurred by the Group to be awarded contract other than
incremental cost expected to be recovered shall be recognized in current profits and losses
when incurred.Any cost incurred by the Group for the performance of any contract that doesn’t fall into the
scope of other businesses specified in the Standard such as inventory but meets the following
conditions simultaneously shall be taken as contract performance cost and recognized as an
asset.- Where such cost is directly related to a current or anticipated contract including direct
labor cost direct material cost manufacturing expenses (or similar expenses) costs clearly
specified to be borne by the customer and other costs incurred solely due to the contract;
- Where such cost includes resources to be used by the Group to fulfill future performance
obligations;
- Where such cost is expected to be recovered.Assets recognized for contract acquisition cost and assets recognized for contract
performance cost (hereinafter referred to as “assets related to contract cost”) shall be
amortized on the same basis as the revenue recognition of goods or services related to such
assets and recognized in current profits and losses. Where the amortization period of assets
recognized for the contract acquisition cost does not exceed one year they shall be
recognized in current profits and losses.Where the book value of assets related to contract costs is higher than the difference between
the following two items the Group shall withdraw the impairment reserves of the excess part
and recognize it as the asset impairment loss:
- Residual consideration expected to be obtained arising from the transfer of goods or
services related to the assets by the Group;
- Cost estimated to be occurred for the transfer of the relevant goods or services.
27. Employee benefits
(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 accrued at the applicable benchmarks and rates are recognized as a liability as the
employee provides services with a corresponding charge to profit or loss or included in the
cost of assets where appropriate.
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(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 organizations. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks and rates
stipulated by the government. Basic pension insurance contributions payable are recognized
as a liability as the employee provides services with a corresponding charge to profit or loss
or included in the cost of assets where appropriate.
(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 recognized with a corresponding expense in profit or
loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of
an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carry out
the restructuring by starting to implement that plan or announcing its main features to those
affected by it.
28. 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 recognized when there is reasonable assurance that the grant will be
received and that the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset it is measured at fair value.Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets. A
government grant related to an asset is recognized as deferred income and amortized over the
useful life of the related asset on a reasonable and systematic manner as other income or
non-operating income. A grant that compensates the Company for expenses or losses to be
incurred in the future is recognized as deferred income and included in other income or
non-operating income in the periods in which the expenses or losses are recognized or
included in other income or non-operating income directly.
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29. Income tax
Current tax and deferred tax are recognized in profit or loss except to the extent that they
relate to a business combination or items recognized directly in equity (including other
comprehensive income).Current tax is the expected tax payable calculated at the applicable tax rate on taxable income
for the year plus any adjustment to tax payable in respect of previous years.At the balance sheet date current tax assets and liabilities are offset only if the Group has a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realize the asset and settle the liability simultaneously.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases which include the deductible
losses and tax credits carried forward to subsequent periods. Deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilized.Deferred tax is not recognized for the temporary differences arising in a single transaction
that is not a business combination and affects neither accounting profit nor taxable profit (or
deductible loss) at the time of the transaction and the initially recognized assets and
liabilities do not result in equal taxable temporary differences or deductible temporary
differences. Deferred tax is not recognized for taxable temporary differences arising from the
initial recognition of goodwill.At the balance sheet date deferred tax is measured based on the tax consequences that would
follow from the expected manner of recovery or settlement of the carrying amounts of the
assets and liabilities using tax rates enacted at the balance sheet date that are expected to be
applied in the period when the asset is recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilized.Such reduction is reversed to the extent that it becomes probable that sufficient taxable
profits will be available.At the balance sheet date deferred tax assets and deferred tax liabilities are offset if all of the
following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current
tax assets;
- they relate to income taxes levied by the same tax authority on either: the same taxable
entity; or different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis or to realize the assets and settle the liabilities
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simultaneously in each future period in which significant amounts of deferred tax liabilities
or deferred tax assets are expected to be settled or recovered.
30 Lease
Lease refers to a contract in which it is agreed that the lessor conveys the use right of any
asset to the lessee for a period of time in exchange for consideration.On the contract start date the Group shall evaluate whether the contract is or contains a
lease. Where either party thereto conveys the right to control the use of one or more
identified assets for a period of time in exchange for consideration the contract is or
contains a lease.To determine whether the contract conveys the right to control the use of identified assets for
a period of time the Group conducts the following assessments:
- Whether the contract involves the use of an identified asset. An identified asset can be
either explicitly specified in a contract or implicitly when the asset is available to the
customer and can be a physically distinct portion or if some capacity or other portion of the
asset is not physically distinct but substantially represents the full capacity of the asset so
that the customer obtains substantially all of the economic benefits from the use of the asset.If the supplier of the asset has the practical ability to substitute the asset throughout the
period of use the asset is not an identified asset;
- Whether the lessee has the right to obtain substantially all of the economic benefits from
the use of the identified asset throughout the period of use; and
- Whether the lessee has the right to direct the use of an identified asset throughout this
period of use.If the contract contains multiple separate leases at the same time the lessee and lessor will
split the contract and have each separate lease separately subject to accounting treatment. If
the contract includes lease and non-lease parts at the same time the lessee and the lessor will
split them separately. When splitting the lease and non-lease parts included in the contract
the lessee shall allocate the contract consideration according to the relative proportion of the
sum of the stand-alone price of each lease part and the stand-alone price of each non-lease
part. The lessor shall allocate the contract consideration in accordance with the provisions on
transaction price allocation in the accounting policy stated in Note 5.22.
(1) Where the Group is the lessee
Upon the commencement of the lease term the Group recognizes right-of-use assets and
lease liabilities for leases. The right-of-use assets are initially measured at cost including
initially measured amount of leased liability; amount of lease payments made on or before
the commencement date of the lease term (the related amount of lease incentive having been
enjoyed shall be deducted); initial direct costs incurred and costs that the Group expects to
incur to disassemble and remove leased assets restore the site where leased assets are located
or restore leased assets to the agreed condition under the terms of the lease.The Group employs the straight-line method to depreciate right-of-use assets. Where it can be
reasonably recognized that the ownership of leased assets will be obtained by the Group upon
99Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
expiration of the lease term leased assets will be depreciated during the service life;
otherwise leased assets will be depreciated during the lease term or the remaining service life
of such leased assets by the Group whichever is shorter. Right-of-use assets shall be
provided for impairment in accordance with the accounting policies stated in Note 5.21.When initially calculating the present value of the unpaid lease payment at the
commencement date of the lease term the Group shall employ the interest rate implicit in the
lease as the discount rate; where the interest rate implicit in the lease cannot be determined
the incremental lending rate of the Group shall be used as the discount rate.The Group calculates the interest expense of lease liabilities in each period of the lease term
according to a fixed periodic rate which will be included in current profits and losses or asset
cost. The variable lease payment not included in the measurement of lease liabilities shall be
recognized in current profits and losses and loss or related asset cost when they actually
occur.In case of any of following circumstances after the commencement date of the lease term the
Group will re-measure lease liabilities at the present value of the lease payment after any
change:
- Where the amount payable anticipated changes according to the guaranteed residual
value;
- Where the index or ratio used for recognizing the lease payment changes;
- Where there is a change in the Group's assessment results of the option of purchase
renewal option or option of termination of lease or the actual exercising of the termination of
the renewal option or option of termination of lease is inconsistent with the original
assessment result.When the Group re-measures lease liabilities the book value of right-of-use assets shall be
adjusted accordingly. Where the book value of right-of-use assets has been reduced to zero
but lease liabilities still need to be subject to further reduction the remaining amount shall be
recognized in current profits and losses.The Group does not recognize right-of-use assets and leased liabilities for short-term lease
(lease with a lease term within 12 months) and lease of low-value assets. The Group shall
include related lease payment into the current profits and losses or relevant asset costs
according to the straight-line method in each period of the lease term.
(2) The Group as the lessor
From the inception of lease the Group will divide leases into finance lease and operating
lease. Finance lease refers to a lease in which almost all the risks and returns related to the
ownership of the leased asset are essentially transferred regardless of whether the ownership
is finally transferred or not. Operating lease refers to other leases except for the finance lease.When the Group is the sublease lessor the sublease shall be classified based on the
right-of-use assets arising from the original lease rather than the underlying assets of the
original lease. If the original lease is a short-term lease and the Group elects to apply the
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above-mentioned simplified treatment of short-term lease to the original lease the Group
shall classify the sublease as an operating lease.For finance leases from the commencement date of the lease term the Group recognizes
finance lease receivables for finance leases and derecognizes the finance lease assets. The
Group regards the net investment in a lease as the entry value of finance lease receivables at
the time of initial measurement of finance lease receivables. The net investment in a lease is
the sum of the present value of unguaranteed residual value and rental receipts not received
yet on the commencement date of the lease term which is subject to discounting at the
interest rate implicit in the lease term.The Group calculates and recognizes the interest income in each period within the lease term
according to a fixed periodic rate. Derecognition and impairment of finance lease receivables
shall be subject to accounting treatment in accordance with the accounting policies stated in
Note 5.10. The variable lease payment which is not included in the net investment in a lease
shall be recognized in current profits and losses when it actually occurs.During each period of the lease term the Group recognizes lease receipts from operating
leases as rental revenue by using the straight-line method. The Group capitalizes initial direct
costs pertaining to operating leases upon their occurrence and apportions them as per the
same basis used for recognizing the rental income within the lease term and includes them in
current profits and losses by period. The variable lease receipts related to operating leases
that are not included in the lease receipts shall be recognized in current profits and losses
when they actually occur. The variable lease payment which is not included in the lease
receipts shall be recognized in current profits and losses when it actually occurs.
31. 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.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
101Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
carrying amount over the fair value less costs to sell is recognized as an impairment loss in
profit or loss.
32. Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan which will be
approved after the balance sheet date are not recognized as a liability at the balance sheet
date but are disclosed in the notes separately.
33. 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 Group determines related parties based on
the disclosure requirements of Administrative Procedures on the Information Disclosures of
Listed Companies issued by the CSRC.
34. Segment reporting
The Group is principally engaged in the production and sales of wine brandy and sparkling
wine in China France Spain Chile and Australia. In accordance with the Group’s internal
organization structure management requirements and internal reporting system the Group’s
operation is divided into four parts: China Spain France Chile and Australia. The
management periodically evaluates segment results in order to allocate resources and
evaluate performances. In 2025 over 82% of revenue more than 94% of profit and over 90%
of non-current assets derived from China / are located in China. Therefore the Group does not
need to disclose additional segment report information.
35. Significant accounting estimates and judgments
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets liabilities income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and in any future periods affected.For significant accounting estimates of this Company see Notes 5.3 7 11 and 16.
102Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
36. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
Nil
(2) Changes in significant accounting estimates
Nil
6. Taxes
1. Main taxes and tax rates
Tax category Taxation basis Tax rates
Levied on the balance between the output tax 13% 9% 6% (China) 20% (France)
Value added tax calculated based on taxable income and the input 21% (Spain) 19% (Chile) 10%
tax allowed to be deducted in current period. (Australia)
Consumption tax Levied on taxable income. 10% of the price 20% of the price and1000 yuan each ton (China)
City development
tax Levied on circulation tax actually paid. 7% (China)
Corporate income
tax Levied on taxable income.
25% (China) 25% (France) 28%
(Spain) 27% (Chile) 30% (Australia)
2. Tax incentives
Ningxia Changyu Grape Growing Co. Ltd. (“Ningxia Growing”) a subsidiary of the Group
engaged in grape growing is incorporated in Yongning County Ningxia Huizu Autonomous
Region. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC
Corporate Income Tax Measures for Implementation Ningxia Growing enjoys the
preferential policy of an exemption of corporate income tax from grape cultivation income.Yantai Changyu Grape Growing Co. Ltd. (“Grape Growing”) a branch of the Company
engaged in grape growing is incorporated in Zhifu District Yantai City Shandong Province.According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate
Income Tax Measures for Implementation Grape Growing enjoys the preferential policy of
an exemption of corporate income tax from grape cultivation income.Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co. Ltd. (“R&Dand Growing”) a branch of the Company engaged in grape growing is incorporated in
YEDA Shandong Province. According to Clause 27 of PRC Corporate Income Tax and
Clause 86 of PRC Corporate Income Tax Measures for Implementation R&D and Growing
enjoys the preferential policy of an exemption of corporate income tax from grape cultivation
income.Beijing Changyu AFIP Agriculture Development Co. Ltd. (“Agriculture Development”) a
103Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
subsidiary of the Group engaged in grape growing is incorporated in Miyun County Beijing.According to clause 27 of the Corporate Income Tax Law of the People’s Republic of China
and clause 86 of the Implementation Rules of Enterprise Income Tax Law of the People’s
Republic of China Agriculture Development enjoys the preferential policy of an exemption
of corporate income tax from grape cultivation income.Xinjiang Babao Baron Chateau Co. Ltd. (“Shihezi Chateau”) a subsidiary of the Company
engaged in the sale of raw wine and finished grape wine is incorporated in Shihezi City
Xinjiang Uygur Autonomous Region. In accordance with Announcement on Continuing the
Enterprise Income Tax Policies for the Large-Scale Development of Western China of the
Ministry of Finance the State Taxation Administration and the National Development and
Reform Commission (Announcement No. 23 [2020] of the Ministry of Finance) Shihezi
Chateau is qualified to enjoy preferential taxation policies which means it can pay corporate
income tax at a preferential rate of 15% for the period from 2021 to 2030.Ningxia Chateau Changyu Longyu Co. Ltd. (referred to as “Ningxia Chateau”) a subsidiary
of the Company engaged in the sale of finished grape wine is incorporated in Yinchuan City
Ningxia Huizu Autonomous Region. In accordance with Announcement on Continuing the
Enterprise Income Tax Policies for the Large-Scale Development of Western China of the
Ministry of Finance the State Taxation Administration and the National Development and
Reform Commission (Announcement No. 23 [2020] of the Ministry of Finance) Ningxia
Chateau is qualified to enjoy preferential taxation policies which means it can pay corporate
income tax at a preferential rate of 15% for the period from 2021 to 2030.Changyu (Ningxia) Wine Co. Ltd. (“Ningxia Wine”) a subsidiary of the Company engaged
in the production and sale of raw wine is incorporated in Yinchuan City Ningxia Huizu
Autonomous Region. In accordance with Announcement on Continuing the Enterprise
Income Tax Policies for the Large-Scale Development of Western China of the Ministry of
Finance the State Taxation Administration and the National Development and Reform
Commission (Announcement No. 23 [2020] of the Ministry of Finance) Ningxia Wine is
qualified to enjoy preferential taxation policies which means it can pay corporate income tax
at a preferential rate of 15% for the period from 2021 to 2030.According to the Law of the People's Republic of China on Enterprise Income Tax and its
implementation regulations the Announcement on Further Implementing the Preferential
Income Tax Policies for Micro and Small Enterprises (Announcement No. 13 of [2022] of the
Ministry of Finance and the State Taxation Administration) and the Announcement of the
Ministry of Finance and the State Taxation Administration on Tax and Fee Policies Related
to Further Supporting the Development of Small and Micro Enterprises and Individual
Industrial and Commercial Households (Announcement No. 12 of [2023] of the Ministry of
Finance and the State Taxation Administration) the annual taxable income of a small
low-profit enterprise meeting the eligibility criteria shall be included in taxable income at
25% of the amount with the applicable enterprise income tax rate of 20%. Beijing Changyu
Wine Industry Marketing Co. Ltd. (“Beijing Allotting”) a subsidiary of the Company has
been identified as eligible small low-profit enterprise.According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Clarifying Policies on the Reduction and Exemption of
Value-Added Tax for Small-Scale VAT Taxpayers (Announcement No. 19 of [2023] of the
104Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Ministry of Finance and the State Taxation Administration) from January 1 2024 to
December 31 2027 small-scale VAT taxpayers subject to a levy rate of 3% on taxable sales
income will enjoy a reduced VAT rate of 1%; and prepaid VAT items that are subject to a 3%
pre-levy rate will enjoy a reduced VAT prepayment rate of 1%. and Xinjiang Changyu Sales
Co. Ltd. Weimeisi Tasting Center Branch enjoys this tax preferential policy.According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Further Strengthening the Implementation of the Policies
Regarding the Refund of Term-End Excess Input Value-Added Tax Credits (Announcement
No. 14 of [2022] of the Ministry of Finance and the State Taxation Administration) it will
further strengthen the implementation of the refund of term-end excess input value-added tax
credits and expand the industry scope of the policy of fully refunding the excess input
value-added tax credits. This Company and eligible subsidiaries have enjoyed the refund of
term-end excess input value-added tax credits.According to the Announcement of the Ministry of Finance and the State Taxation
Administration on Tax and Fee Policies Related to Further Supporting the Development of
Small and Micro Enterprises and Individual Industrial and Commercial Households
(Announcement No. 12 of [2023] of the Ministry of Finance and the State Taxation
Administration) from January 1 2023 to December 31 2027 a small-scale VAT taxpayer a
small low-profit enterprise or an individual industrial and commercial household may be pay
resource tax (excluding water resource tax) urban maintenance and construction tax
property tax urban land use tax stamp tax (excluding securities trading stamp tax) farmland
occupation tax educational surtax or local education surcharges at half the normal rate.Some of the Company’s subsidiaries are eligible for the reduction of “six taxes and two fees”.
7. Notes to items in the consolidated financial statement
1. Monetary capital
Unit: yuan
Item Ending balance Beginning balance
Cash on hand 54828 27228
Bank deposit 1795338892 1797503539
Other monetary capital 43697408 317363
Total 1839091128 1797848130
Including: Total overseas deposits 20582927 33384691
As at June 30 2025 the details of restricted bank deposits are as follows:
Item Ending balance Beginning balance
Supervision fund for migrant workers’ wages 1153748 1153216
As at June 30 2025 the bank deposits of the Group including short-term fixed deposits ranging
from 3 months to 12 months amounted to RMB 57650000 yuan with the interest rates ranging
from 1.30% to 2.25% (December 31 2024: RMB 78650000 yuan).
105Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
As at June 30 2025 the details of other monetary funds are listed as follows:
Unit: yuan
Item Ending balance Beginning balance
Deposit investment funds for stock repurchase 42697354
Account balance of Alipay 836181 158894
Guaranty money for ICBC platform 24393 24393
Guaranty money for customs 139480 134076
Total 43697408 317363
As of June 30 2025 the Group does not have any special interest arrangements such as
establishing joint fund management accounts with related parties.
2. Bills receivable
Classification of bills receivable
Item Ending balance Beginning balance
Bank acceptance bills 27600 1036243
Total 27600 1036243
The above bills receivable are all due within one year.
3. Accounts receivable
(1) Disclosed by age:
Unit: yuan
Age Ending book balance Beginning book balance
Within 1 year (including 1 year) 183459554 274048512
1-2 years 1618001 747104
2-3 years 342214 2122990
Over 3 years 2597774 1523718
Total 188017543 278442324
As at June 30 2025 the accounts receivable with ownership restrictions were RMB 55173340
yuan (December 31 2024: 35917860 yuan). Please refer to Note 7.20 for details.
(2) Accounts receivable are analyzed by customer category as follows:
Unit: yuan
Ending balance
Name
Book balance Provision for bad debts Accrued proportion
Receivable from related parties 2462304 958 0.04%
Other customers 185555239 6062707 3.27%
106Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Total 188017543 6063665 --
(3) Disclosed by provision for bad debts:
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad Provision for badType debts Book balanceBook debts Book
value value
Amount Proportion Amount Accruedproportion 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 188017543 100% 6063665 3.23% 181953878 278442324 100% 7612723 2.73% 270829601
accrued on a
combined basis
Total 188017543 100% 6063665 3.23% 181953878 278442324 100% 7612723 2.73% 270829601
(4) Provision for bad debts accrued withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
Unit: yuan
Changes in this period
Beginning Ending
Type
balance Withdrawn orAccrued Cancelled Others balance
transferred back
Provision for bad debts is 7612723 -1549058 6063665
accrued on a combined basis
Total 7612723 -1549058 6063665
(5) Accounts receivable actually cancelled after verification in this period
Nil
(6) Accounts receivable and contract assets situation collected by borrowers of top 5 units
ranked by ending balance
Unit: yuan
Ending balance of Percentage in total Ending balance of bad
Ending balance of Ending
accounts ending balance of debts provision and
Unit name accounts balance of
receivable and accounts receivable provision for impairment
receivable contract assets
contract assets and contract assets of contract assets
Customer 1 19847292 19847292 10.6% 7725
Customer 2 8496435 8496435 4.5% 264138
Customer 3 5602818 5602818 3.0% 2181
107Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Customer 4 5412112 5412112 2.9% 168252
Customer 5 4761471 4761471 2.5% 148025
Total 44120128 44120128 23.5% 590321
(7) Accounts receivable terminating recognition due to transfer of financial assets
Nil
(8) Accounts receivable transferred and included in assets and liabilities
Nil
4. Receivables financing
Unit: yuan
Item Ending balance Beginning balance
Bills receivable 209353041 230960211
Total 209353041 230960211
(1) Pledged bills receivable of the Group at the end of the year
Nil
(2) Outstanding endorsed bills that have not matured at the end of the year
Type Amount derecognized at end of period
Bank acceptance bills 80494726
Total 80494726
As at June 30 2025 bills endorsed by the Group to other parties which are not yet due is RMB
80494726 yuan (December 31 2024: RMB 261965866 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 derecognize the note receivables
endorsed. If the bank is unable to pay the notes on maturity according to the relevant laws and
regulations of China the Group would undertake limited liability for the notes.
5. Advance payment
(1) Advance payment listed by age
Unit: yuan
Ending balance Beginning sum
Age
Amount Proportion Amount Proportion
Within 1 year 39892810 93.01% 59383101 97.90%
1-2 years 2996280 6.99% 1248474 2.10%
108Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Ending balance Beginning sum
Age
Amount Proportion Amount Proportion
2-3 years
More than 3 years
Total 42889090 -- 60631575 --
(2) Advance payment collected by prepaid parties of top 5 units ranked by ending balance
Unit: yuan
Relationship with Percentage in theClient type the Group Amount Age Reason for unsettlement total advancepayment %
Unit 1 Third party 25115275 Within 1 year Prepaid payment for goods 58.6%
Unit 2 Third party 7842777 Within 1 year Prepaid payment for goods 18.3%
Unit 3 Affiliated party 3519838 Within 1 year Prepaid payment for goods 8.2%
Unit 4 Third party 2174305 Within 1 year Prepaid payment for goods 5.1%
Unit 5 Third party 500000 Within 1 year Prepaid service charge 1.2%
Total -- 39152195 -- 91.4%
6. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Interests receivable
Dividends receivable
Other receivables 157384720 264598394
Total 157384720 264598394
Other receivables
(1) Other receivables classified by nature
Unit: yuan
Nature Ending book balance Beginning book balance
Receivable compensation for vineyard
disposal 90666088 200666088
Land acquisition and storage receivable 37268902 37268902
Consumption tax and added-value tax
export rebate 19145201 15560239
Deposit and guaranty money receivable 5562493 6163682
Housing maintenance fund 2666219 2640911
Imprest receivable 256404 28781
Others 5546303 5996681
109Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Total 161111610 268325284
(2) Other receivables classified by nature
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 116291394.00 227970834
1-2 years 4491699.00 583562
2-3 years 37792786 38599235
More than 3 years 2535731 1171653
Total 161111610 268325284
(3) Provision for bad debts accrued withdrawn or transferred back in this period
Changes during the period
Category Beginningbalance Accrual Reversal or Transfer back
Ending balance
return or write-off Others
Individual
provision 3726890 3726890
Total 3726890 3726890
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.
(4) Other receivables actually cancelled after verification in this period
Nil
(5) Other receivables collected by borrowers of top 5 units ranked by ending balance
Unit: yuan
Percentage in total Ending balance
Unit Name Nature Ending balance Age ending balance of other of provision for
accounts receivable bad debts
Receivable compensation for
Unit 1 90666088 Within 1 year 56.3%
vineyard disposal
Land acquisition and reserve
Unit 2 37268902 2-3 years 23.1% 3726890
funds
Value-added tax and
Unit 3 17935686 Within 1 year 11.1%
consumption tax export rebate
Unit 4 Housing maintenance fund 2666219 1-2 years 1.7%
Unit 5 Value-added tax export rebate 1209515 Within 1 year 0.8%
Total -- 149746410 92.9% 3726890
(6) Accounts receivable involving government subsidies
110Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Nil
(7) Other receivables that are terminated for recognition due to transfer of financial assets
Nil
(8) Other receivables transferred and then included in assets and liabilities
Nil
7. Inventories
(1) Inventory classification
Unit: yuan
Ending balance Beginning balance
Item
Book balance Depreciationprovision Book value Book balance
Depreciation
provision Book value
Raw materials 72889545 72889545 287082056 287082056
Goods in process 2287206863 2287206863 1921142415 1921142415
Commodity
stocks 620779464 21052465 599726999 714804585 18958500 695846085
Total 2980875872 21052465 2959823407 2923029056 18958500 2904070556
(2) Inventory depreciation provision
Unit: yuan
Increase in this period Decrease in this period
Item Beginning balance Transfer back or Ending balanceAccrual Others write-off Others
Raw materials
Goods in process
Commodity
stocks 18958500 21052465 18958500 21052465
Total 18958500 21052465 18958500 21052465
8. Other current assets
Unit: yuan
Item Ending balance Beginning balance
Accounts receivable return cost 144238 13866802
Prepaid corporate income tax 17912899 1408482
Deductible input tax 47071672 63225758
Expense to be amortized 579168 1882199
Total 65707977 80383241
111Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
9. Long-term equity investments
Unit: yuan
Movements during the period
Beginning Investment
Beginning balance balance of gains and Other Declare Ending balance Ending balanceInvestee Other Accrual of provision for(book value) provision for Increase Decrease losses comprehensive cash (book value)
impairment in capital in capita recognized income
equity dividend provision for Others impairment
under the adjustment changing impairmentor profit
equity method
1. Joint ventures
SAS L&M Holdings
(“L&M Holdings”) 32797631 -2545542 30252089
Subtotal 32797631 -2545542 30252089
2. Associates
Shanghai Yufeng Brand
Management Co. Ltd.(“Shanghai Yufeng”) 383720 7573 391293
(Note 1)
Yantai Guolong Wine
Industry Co. Ltd.(“Yantai Guolong”) 757001 -74720 682281
(Note 1)
Taizhou Changyu
Winery Wine Sales Co. 926396 -405399 520997
Ltd. (Note 2)
Subtotal 2067117 -472546 1594571
Total 34864748 -3018088 31846660
Note 1: The Group has appointed one director to each of these investees.Note 2: The Group has appointed two Directors to these investees.
10. Investment real estate
(1) Investment real estate by cost measurement method
Unit: yuan
Item Houses and buildings Land use right Construction inprogress Total
I Original book value
1. Beginning balance 81165619 81165619
2. Increase in this period
(1) Outsourcing
(2) Transfer in from
inventories\fixed assets\
construction in progress
(3) Business merger increase
3. Decrease in this period
(1) Disposal
112Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Houses and buildings Land use right Construction inprogress Total
(2) Other transfer out
4. Ending balance 81165619 81165619
II. Accumulated depreciation &
accumulated amortization
1. Beginning balance 59205168 59205168
2. Increase in this period 1224861 1224861
(1) Accrual or amortization 1224861 1224861
3. Decrease in this period
(1) Disposal
(2) Other transfer out
4. Ending balance 60430029 60430029
III. Impairment provision
1. Beginning balance
2. Increase in this period
(1) Accrual
3. Decrease in this period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 20735590 20735590
2. Beginning book value 21960451 21960451
11. Fixed assets
Unit: yuan
Item Ending balance Beginning balance
Fixed assets 5436526847 5551671795
Disposal of fixed assets
Total 5436526847 5551671795
(1) Particulars of fixed assets
Unit: yuan
Item Houses and Machinery Transportationbuildings equipment equipment Total
I. Original book value:
1. Beginning balance 5857616706 2849771289 22112010 8729500005
2. Increase in this period 5809269 29308148 303823 35421240
113Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Houses and Machinery Transportationbuildings equipment equipment Total
(1) Acquisition 5809269 21920025 303823 28033117
(2) Transfer in from construction in progress 7388123 7388123
(3) Business merger increase
3. Decrease in this period 120301 418272 538573
(1) Disposal or retirement
120301418272538573
(2) Others
4. Ending balance 5863425975 2878959136 21997561 8764382672
II. Accumulated depreciation
1. Beginning balance 1450718306 1696378973 20367548 3167464827
2. Increase in this period 76906266 72930512 703900 150540678
(1) Accrual 76906266 72930512 703900 150540678
3. Decrease in this period 111924 401139 513063
(1) Disposal or retirement 111924 401139 513063
(2) Others
4. Ending balance 1527624572 1769197561 20670309 3317492442
III. Impairment provision
1. Beginning balance 10363383 10363383
2. Increase in this period
(1) Accrual
3. Decrease in this period
(1) Disposal or retirement
(2) Others
4. Ending balance 10363383 10363383
IV. Book value
1. Ending book value 4335801403 1099398192 1327252 5436526847
2. Beginning book value 4406898400 1143028933 1744462 5551671795
As at June 30 2025 the net value of the fixed assets with ownership restrictions was RMB
31834682 yuan (December 31 2024: RMB 32467803 yuan). Please refer to Note 7.20 for
details.
(2) Particulars of temporarily idle fixed assets
Unit: yuan
Item Original book value Accumulated Depreciationdepreciation reserves Book value Remarks
Machinery equipment 29423698 19060315 10363383
Total 29423698 19060315 10363383
114Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
(3) Particulars of fixed assets under finance leases
Nil
(4) Fixed assets under operating lease
Unit: yuan
Item Ending book value
Buildings 84423826
Machinery equipment 931
(5) Particulars of fixed assets without property certificates
Unit: yuan
Item Book value Reason for not receiving the propertycertificate
Dormitory building main building and 248965017 Under transaction
reception building of Chang’an Chateau
European town main building and service 150149076 Under transaction
building of Chateau AFIP
Wine-making fermentation workshop and 780628 Under transaction
warehouse of Changyu (Ningxia)
Office building laboratory building and 3547085 Under transaction
workshop of Fermentation Center
Wine-making workshop of Changyu 3691719 Under transaction
(Jingyang)
Finished goods warehouse and workshop 1807442 Under transaction
of Kylin Packaging
Others 541759 Under transaction
Total 409482726
12. Construction in progress
Unit: yuan
Item Ending balance Beginning balance
Construction in progress 4182026 10177372
Engineering materials
Total 4182026 10177372
(1) Particulars of construction in progress
Unit: yuan
Ending balance Beginning balance
Item
Book balance Impairmentprovision Book value Book balance
Impairment
provision Book value
Cabernet wine production line 7202959 7202959
equipment renovation
115Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Ending balance Beginning balance
Item
Book balance Impairmentprovision Book value Book balance
Impairment
provision Book value
AFIP main building upgrade and 1128971 1128971 1128971 1128971
renovation
Projects of other companies 3053055 3053055 1845442 1845442
Total 4182026 4182026 10177372 10177372
116Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
(2) Changes of major construction in progress in this period
Unit: yuan
Transferred Transferred Proportion of Accumulative Including:
Project name Budget Beginning Increase in to fixed
to long-term Ending accumulative capitalized capitalized Capitalization
balance this period unamortized balance project input in amount of amount of ratio of interest in Capital sourceassets in this
period expenses in budget interest
interest in this period
this period this period
Cabernet wine
production line
equipment 9000000 7202959 7202959 Self-raised funds
renovation
AFIP travel
main building
upgrade and 3000000 1128971 1128971 37.6% Self-raised funds
renovation
As at June 30 2025 there was no indication for impairment of construction in progress of the Group so no provision for impairment was made.
117Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
13. Productive biological assets
(1) Productive biological assets by cost measurement method
Unit: yuan
Plantation
Total Total
Immature Mature
Ⅰ Original book value
1. Beginning balance 16596341 107115596 123711937
2. Increase in this period 1303832 34210 1338042
(1) Outsourcing
(2) Self cultivation 1303832 34210 1338042
The immature turn to the mature
3. Decrease in this period
(1) Disposal
(2) Others
4. Ending balance 17900173 107149806 125049979
ⅡAccumulated depreciation
1. Beginning balance 57227973 57227973
2. Increase in this period 3449249 3449249
(1) Accrual 3449249 3449249
3. Decrease in this period
(1) Disposal
(2) Other
4. Ending balance 60677222 60677222
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
(1) Accrual
3. Decrease in this period
(1) Disposal
(2) Others
4. Ending balance
Ⅳ Book value
1. Ending book value 17900173 46472584 64372757
2. Beginning book value 16596341 49887623 66483964
As at June 30 2025 no ownership of the biological assets was restricted.As at June 30 2025 there was no indication for impairment of biological assets of the Group so no
provision was made.
118Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
14. Right-of-use assets
Unit: yuan
Item Building Land Others Total
Ⅰ Original book value:
1. Beginning balance 82555594 84681091 1697986 168934671
2. Increase in this period 1724892 1724892
3. Decrease in this period 1697986 1697986
4. Ending balance 82555594 84681091 1724892 168961577
ⅡAccumulated amortization
1. Beginning balance 57562203 37913220 1697986 97173409
2. Increase in this period 7951563 1312220 172489 9436272
2.1 Accrual 7951563 1312220 172489 9436272
3. Decrease in this period 1697986 1697986
4. Ending balance 65513766 39225440 172489 104911695
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 17041828 45455651 1552403 64049882
2. Beginning book value 24993391 46767871 71761262
119Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
15. Intangible assets
(1) Particulars of intangible assets
Unit: yuan
Item Land use right Software use right Trademark Total
Ⅰ Original book value
1. Beginning balance 444520847 105174442 191250359
740945648
2. Increase in this period
16585295692162591
474868
2.1 Acquisition
16585295692162591
474868
2.2 Internal R&D
2.3 Business merger increase
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 444537432 105470134 191412950 741420516
ⅡAccumulated amortization
1. Beginning balance 114683586 81965845 16589834 213239265
2. Increase in this period 4446310 3837271 266973 8550554
2.1 Accrual 4446310 3837271 266973 8550554
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 119129896 85803116 16856807 221789819
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance
Ⅳ Book value
120Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Land use right Software use right Trademark Total
1. Ending book value 325407536 19667018 174556143 519630697
2. Beginning book value 329837261 23208597 174660525 527706383
As at December 31 2024 no ownership of the intangible assets was restricted.
(2) Particulars of land use right of that not receiving the property certificate
Nil
16. Goodwill
(1) Original book value of goodwill
Unit: yuan
Increase in this period Decrease in this period
Name of the invested unit or matter forming Beginning Ending
goodwill balance Formed by Others Disposal Others balance
business mergerEtablissements Roullet Fransac (“Roullet
1311252513112525Fransac”)
Dicot Partners S.L (“Atrio Group”) 92391901 92391901
Indomita Wine Company Chile SpA 6870115 6870115
Kilikanoon Estate Australia 37063130 37063130
Total 149437671 149437671
(2) Provision for impairment of goodwill
Unit: yuan
Name of the invested unit or matter forming Beginning Increase in this period Decrease in this period Ending
goodwill balance Accrual Others Disposal Others balanceEtablissements Roullet Fransac (“RoulletFransac”)
Dicot Partners S.L (“Atrio Group”) 11225459 11225459
Indomita Wine Company Chile SpA
Kilikanoon Estate Australia 37063130 37063130
Total 48288589 48288589
17. Long-term unamortized expenses
Unit: yuan
121Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Increase in this Amortization in this
Item Beginning balance Other decreases Ending balance
period period
Land acquisition
4148589579507140690824
fees
Afforestation fees 101735181 4251812 97483369
Renovation costs 149320615 1868862 5736762 145452715
Others 6252011 50506 302199 6000318
Total 298793702 1919368 11085844 289627226
18. Deferred income tax assets/liabilities
(1) Un-offset deferred income tax assets
Unit: yuan
Ending Balance Beginning Balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Asset impairment provision 41206403 10574001 40661496 10437775
Unrealized profits from 292689806 73172452 417770236 104442560
inter-company transactions
Deductible loss 298436566 73092799 280061166 68206780
Unpaid bonus 93633692 23408423 123258072 30814518
Dismission welfare 5355824 1338956 6739412 1684853
Deferred income 25886226 5622457 25938817 5540954
Influence of leasing 3101975 775791 3462626 865659
standards
Total 760310492 187984879 897891825 221993099
(2) Un-offset deferred income tax liabilities
Unit: yuan
Ending Balance Beginning Balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Assets appraisal
appreciation in business
233419216756066244477907076871
combination under
non-common control
122Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Impact of leasing
308123770311069168267294
standards
Total 23650044 6833097 25516958 7344165
(3) Details of unconfirmed deferred income tax assets
Unit: yuan
Item Ending balance Beginning balance
Deductable temporary difference
Deductible loss 532912143 478477359
Total 532912143 478477359
(4) Deductible losses of unconfirmed deferred income tax assets will expire in
Unit: yuan
Year Ending sum Beginning sum Remark
20257052851070528510
20266027485660274856
2027123557586123557586
2028117444729117444729
2029106671678106671678
203054434784
Total 532912143 478477359 --
19. Other non-current assets
Unit: yuan
Ending balance Beginning balance
Item Impairment Impairment Impairment
Book balance Book balance Book balance
provision provision provision
Advance
payment for 2572310 2572310 3554409 3554409
construction
Total 2572310 2572310 3554409 3554409
20. Assets with restricted ownership or use rights
Unit: yuan
123Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Ending Beginning
Item Book Book Restriction Restriction Book Restriction Restriction
Book value
balance value type state balance type state
Monetary 2153802 2153802 Security 1470579 1470579 SecurityPledge Pledge
capital deposit etc. deposit etc.Fixed 46653467 31834682 Mortgage MortgagePledge 46653467 32467803 Pledge
assets loan loan
Accounts 55173340 55173340 Factoring 35917860 35917860 FactoringPledge Pledge
receivable restricted restricted
Total 103980609 89161824 84041906 69856242
21. Short-term loans
(1) Classification of short-term loans
Unit: yuan
Item Ending balance Beginning balance
Mortgage loan 150422793 126552126
Guaranteed loan 2340850 26365950
Fiduciary loan 62171042 63222270
Total 214934685 216140346
·As at June 30 2025 EUR mortgage loan was EUR 6566379 (equivalent of RMB 55173340
yuan) (December 31 2024: EUR 4772694 equivalent of RMB 35917860 yuan) of accounts
receivable factoring business handled by Hacienday Vinedos Marques del Atrio S.L.U. (“Atrio”)
with banks including Banco Santander BBVA and CAIXABANK;
·As at June 30 2025 USD mortgage loan was USD 13250000 (equivalent of RMB 95249453
yuan) (December 31 2024: USD 12375000 equivalent of RMB 90634266 yuan) of loans
borrowed by Chile Indomita Wine Group from Banco Scotiabank and Banco de Chile with the fixed
assets as collateral.·On June 30 2025 the guaranteed loan for Australia Kilikanoon Estate was AUD 500000
(equivalent of RMB 2340850 yuan) (December 31 2024: AUD 4800000 equivalent of RMB
23272320 yuan)
22. Accounts payable
(1) List of accounts payable
Unit: yuan
Item Ending balance Beginning balance
Accounts payable for materials etc. 349303625 417510439
124Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Total 349303625 417510439
(2) No significant accounts payable aged more than one year in this year
23. Contract liabilities
Unit: yuan
Item Ending balance Beginning balance
Advances from customers 116410398 127855694
Withholding of goods with sales rebate 234659
Total 116410398 128090353
24 Employee remunerations payable
(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 159642385 143337903 198642558 104337730
2. Post-employment welfare –
323120232395782346969992999
defined contribution plan
3. Dismission welfare 6739412 2286631 3670218 5355825
4.Other welfare due within one year
Total 166704917 168864112 225782475 109786554
(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 156491000 119205186 174686687 101009499
2. Staff welfare 1270097 8640607 8138782 1771922
3. Social insurance charges 302052 7717876 8011789 8139
Including: Medical insurance 302020 7148095 7441976 8139
Injury insurance 32 566996 567028
Maternity insurance 2785 2785
4. Housing fund 38581 6225362 6225361 38582
5. Union fee and staff education fee 1540655 1548872 1579939 1509588
6. Short-term compensated absences
7. Short-term profit-sharing plan
Minus: Those divided into
125Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Beginning balance Increase in this period Decrease in this period Ending balance
non-current liabilities
Total 159642385 143337903 198642558 104337730
(3) List of defined contribution plan
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
1. Basic endowment
321807226052242283404292989
insurance
2. Unemployment
131363435463565710
insurance
3. Enterprise annuity
payment
Total 323120 23239578 23469699 92999
(4) Dismission welfare
Unit: yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Compensation for server of labor
relation
2. Compensation for early retirement 6739412 2286631 3670218 5355825
Total 6739412 2286631 3670218 5355825
25. Taxes and dues payable
Unit: yuan
Item Ending balance Beginning balance
Value added tax 14600939 39051407
Consumption tax 13757243 40806933
Corporate income tax 82700345 88479855
Individual income tax 1067369 828712
Urban maintenance and construction tax 1821504 5372605
Education surcharges 1328974 3857746
Urban land use tax 2260215 2301066
Others 8911922 8448730
126Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Ending balance Beginning balance
Total 126448511 189147054
26. Other payables
Unit: yuan
Item Ending balance Beginning balance
Interest payable
Dividends payable 420120
Other payables 333657037 398149521
Total 334077157 398149521
(1) Dividends payable
Unit: yuan
Item Ending balance Beginning balance
Ordinary stock dividends
Preferred stock dividends/sustainable debt
dividends divided into equity instruments
Others 420120
Total 420120
(2) Other payables
1) Other payables listed by nature
Unit: yuan
Item Ending balance Beginning balance
Dealer’s deposit payable 160984243 170639777
Equipment purchase and construction costs payable 13517253 13160841
Transportation charges payable 11819055 21041131
Trademark use fee payable 8066531 18630742
Advertisement expenses payable 12573333 44729221
Employee cash deposit 309282 735016
Supplier’s deposit payable 15560902 16515150
Contracting fees payable 5078819 3179094
Repurchase of treasury stock funds payable 70704426 70704426
Others 35043193 38814123
127Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Total 333657037 398149521
2) Explanation of large accounts payable aged more than one year
As at June 30 2025 there were no other large accounts payable aged more than one year.
27. Non-current liabilities due within one year
Unit: yuan
Item Ending balance Beginning balance
Long-term loans due within one year 62165760 61161578
Bonds payable due within one year
Long-term accounts payable due within
one year
Lease liabilities due within one year 17362375 18788191
Total 79528135 79949769
28. Other current liabilities
Item Ending balance Beginning balance
Refund payable 160933 16425141
Unamortized VAT amount 15133352 24339101
Total 15294285 40764242
29. Long-term loans
(1) Classification of long-term loans
Unit: yuan
Item Ending balance Beginning balance
Fiduciary loan 140081215 111798781
Minus: Long-term loans due within one
6216576061161578
year
Total 77915455 50637203
As at June 30 2025 fiduciary loans (EUR) were EUR 16671822 (equivalent of RMB 140081215
yuan) (December 31 2024: EUR 14855599 equivalent of RMB 111798781 yuan) borrowed by
Atrio from banks including Banco de Sabadell S.A. BBVA and Caja Rural de Navarr Caixa Bank.
128Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
30. Lease Liabilities
Unit: yuan
Item Ending balance Beginning balance
Long-term lease liabilities 38306297 46331020
Minus: Lease liabilities due within one year 17362375 18788191
Total 20943922 27542829
31. Deferred income
Unit: yuan
Increase in this Decrease in this
Item Beginning balance Ending balance Forming reason
period period
Governmental
259388174800000485259125886226
subsidy
Total 25938817 4800000 4852591 25886226 --
Projects related to governmental subsidy
Unit: yuan
Amount of Amount included Amount
Beginning subsidy newly in non-operating included in Other Ending Related to assets/
Item of liabilities
balance increased in revenue in this other changes balance income
this period period income in
Industrial development
8200000 2050000 6150000 Related to assets
supporting funds
Subsidy for retaining
7847333 1800000 569000 9078333 Related to assets
wall
Xinjiang industrial
revitalization and
7110000 711000 6399000 Related to assets
technological
transformation project
Special funds for Related to assets
efficient water-saving 667000 81000 586000
irrigation project
Subsidy for economic
and energy-saving
256600 64150 192450 Related to assets
technological
transformation projects
Subsidy for scenic spot
195184 134897 60287 Related to assets
construction
129Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Amount of Amount included Amount
Beginning subsidy newly in non-operating included in Other Ending Related to assets/
Item of liabilities
balance increased in revenue in this other changes balance income
this period period income in
Subsidy for mechanic
development of Penglai 264000 13200 250800 Related to assets
Daliuhang Base
Subsidy for research
and industrialization of
1398700 1221344 177356 Related to income
domestic oak aging
technology
Fund for high-quality
development of the 3000000 8000 2992000 Related to income
industrial chain
Total 25938817 4800000 4852591 25886226
32. Share capital
Unit: yuan
Increase or decrease (+-) in this period
Ending
Item Beginning balance Newly issued Allocated Share transferred from
Others Subtotal balance
shares shares accumulation fund
Total shares 671823900 671823900
33. Capital reserves
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
Capital premium (share capital
451532723451532723
premium)
Other capital reserves 30610824 30610824
Total 482143547 482143547
34. Treasury share
Item Beginning balance Increase in this period Decrease in this period Ending balance
Repurchase of B-shares 7150483 7150483
Repurchase of restricted stock 70704426 70704426
Total 70704426 7150483 77854909
·The eleventh meeting of the Ninth Board of Directors was held on April 16 2025 and the 2024
130Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Annual General Shareholders’ meeting was held on May 23 2025. The Plan for Repurchasing
Shares of Part of Domestic Listed Foreign Shares (B-shares) of the Company was reviewed and
approved. According to the above-mentioned B-share repurchase plan the Company will
implement the repurchase of domestic listed foreign shares (B-shares) through centralized bidding
trading taking into account its own financial and operating conditions with a total repurchase
capital not exceeding RMB 100 million yuan and a repurchase price not exceeding HKD 11.50 per
share. The repurchase period shall not exceed 12 months from the date of approval of share
repurchase plan by the shareholders’ meeting. The number of shares to be repurchased shall not be
less than 10 million shares and shall not exceed 15 million shares. The repurchased shares shall be
cancelled and the registered capital of the Company shall be correspondingly reduced.·As of June 30 2025 the Company has repurchased a total of 936000 domestic listed foreign
shares (B-shares) through centralized bidding method via a special securities account for share
repurchase accounting for 0.139322% of the Company’s current total share capital. The total
transaction amount was equivalent to RMB 7150483.
35. Other comprehensive income
Unit: yuan
Amount incurred in this period
Minus: amount Minus: amount
Beginning Amount included in
included in
other
Item incurred other Minus: Attributable Attributable
Ending
comprehensive
balance before income comprehensive income before income to parent to minority balanceincome before
tax in this and transferred tax company shareholdersand transferred
period to profit or loss to retained expenses after tax after tax
in this period earnings inthis period
1. Other comprehensive income
not to be reclassified into profit
and loss later
Including: Changes after
re-measuring and resetting the
benefit plans
Other comprehensive
income not to be reclassified
into profit and loss under equity
method
Changes in the fair value
of other investments in equity
instruments
Changes in the fair value
of the enterprise’s own credit risk
2. Other comprehensive income
to be reclassified into profit and -39714972 14870571 13583338 1287233 -26131634
loss later
131Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Amount incurred in this period
Minus: amount Minus: amount
Amount included in included inBeginning other Ending
Item incurred other Minus: Attributable Attributable
comprehensive comprehensivebalance before income income before income before
income to parent to minority balance
tax in this and transferred tax company shareholdersand transferred
period to profit or loss to retained expenses after tax after tax
in this period earnings inthis period
Including: Other comprehensive
income to be reclassified into
profit and loss under equity
method
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
Provisionforcash-flowhedge
Difference in translation of
Foreign Currency Financial -39714972 14870571 13583338 1287233 -26131634
Statement
Totalothercomprehensive income -39714972 14870571 13583338 1287233 -26131634
36. 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
Others
Total 342732000 342732000
37. Undistributed profit
Unit: yuan
132Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item This period Prior period
Undistributed profit at the end of prior period before adjustment 9232928370 9273629318
Total undistributed profit at the beginning of the period before
adjustment (increase listed with+ and decrease listed with -)
Undistributed profit at the beginning of the period after
92329283709273629318
adjustment
Plus: Net profit for owner of the parent company 185597142 305210999
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 268729560 345911947
Common dividend transferred to share capital
Undistributed profit at the end of period 9149795952 9232928370
38. Operating income and operating cost
(1) Details of operating income
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 1434469813 579755809 1487897428 583656058
Other businesses 36106364 13050449 34412008 12092672
Total 1470576177 592806258 1522309436 595748730
Including: Income from contracts 1467719364 590459268 1519454062 593381289
Income from house rents 2856813 2346990 2855374 2367441
(2) Situation of income from and cost of contracts
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
- Alcoholic beverage 1434469813 579755809
- Others 33249551 10703459
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 1467719364 590459268
133Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
39. Taxes and surcharges
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 58563215 73844921
Urban maintenance and construction tax 8879061 8854663
Education surcharges 6439043 6398857
Building tax 17414976 16684157
Land use tax 4925917 4946440
Vehicle and vessel use tax 10536 13677
Stamp duty 1437117 1928621
Others 181575 149271
Total 97851440 112820607
40. Selling expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Personnel cost 119403300 126497516
Marketing expenses 130423949 108239032
Labor expenses 15252966 14966602
Depreciation expenses 30786813 33555237
Storage expenses 11354031 12833741
Advertisement expenses 29798339 27638002
Trademark use fees 5451141 7858547
Travel expenses 12906974 12764888
Design & production expenses 4921771 2757387
Conference expenses 3000702 3299438
Water electricity and gas charges 5414402 4438730
Others 33436428 37067395
Total 402150816 391916515
41. Management expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Personnel cost 28938791 40282224
Depreciation expenses 49771088 44817743
Contracting expenses 2007300 2007300
134Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
Repair expenses 2342841 2193997
Office expenses 11028310 10921919
Amortization expenses 7922805 7922598
Afforestation fees 6736148 6807871
Safe production costs 2553903 2940546
Business entertainment expenses 1375182 1475072
Public security & clean-keeping expenses 3333559 3208403
Travel expenses 972756 1527146
Others 9665276 8840796
Total 126647959 132945615
42. R&D expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 9071966 6748675
Total 9071966 6748675
43. Financial expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 5528569 9918886
Minus: Interest income 5914026 12390815
Plus: Commission charges 514469 705999
Exchange gain or loss -14776944 4989440
Total -14647932 3223510
44. Other income
Unit: yuan
Source of other income Amount incurred in this period Amount incurred in prior period
Industrial development supporting funds 2050000 2050000
Wine fermentation capacity construction 200000
project
Xinjiang industrial revitalization and 711000 711000
technological transformation project
135Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Subsidy for retaining wall 569000 494000
Other – related to assets 293247 174996
Special funds for supporting corporate 4334100 8732100
development
Talent development fund 860000 3650000
Regional sales incentive fund 4110000
Other – related to income 6331199 17618544
Total 19258546 33630640
45. Investment income
Unit: yuan
Amount incurred in this Amount incurred in prior
Item
period period
Investment income from long-term equity by equity method -3018088 -1932092
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 during the holding
period
Gains generated from the remaining equity re-measured as per fair value
after the loss of control
Interest income gained from equity investment during the holding period
Interest income gained from other equity investments during the holding
period
Investment income gained from disposal of other equity investments
Total -3018088 -1932092
46. 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 1549058 4083362
Total 1549058 4083362
47. Loss on impairment of assets
Unit: yuan
136Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
Inventory falling price loss and loss on
-2093965-1024683
impairment of contract execution cost
Total -2093965 -1024683
48. 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 361014 4647
Total 361014 4647
49. Non-operating income
Unit: yuan
Amount incurred in this Amount incurred in prior Amount included in the current
Item
period period non-recurring profits/losses
Gains on exchange of non-monetary assets
Grains on donations
Governmental subsidy
Gains on scrap of non-current assets 23894 975 23894
Others 893739 1676650 893739
Total 917633 1677625 917633
50. Non-operating expenses
Unit: yuan
Amount incurred in Amount incurred Amount included in the current
Item
this period in prior period non-recurring profits/losses
Loss on exchange of non-monetary assets
Donation 20000 350000 20000
Loss on scrap of non-current assets 26032 101292 26032
Fine penalty and overdue fine 520698 131210 520698
Others 22633 29081 22633
Total 589363 611583 589363
137Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
51. Income tax expenses
(1) List of income tax expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Current income tax expenses 48268623 52966929
Deferred income tax expenses 33497152 39791416
Total 81765775 92758345
(2) Adjustment process of accounting profit and income tax expenses
Unit: yuan
Item Amount incurred in this period
Total profit 273080505
Income tax expenses calculated according to the legal/applicable tax rate 68270126
Influence of different tax rates applicable to subsidiary 636672
Influence of income tax in the term before adjustment 624266
Influence of nontaxable income
Influence of non-deductible costs expenses and losses 628513
Influence of deductible loss from use of unconfirmed deferred income tax
-1421743
assets in prior period
Influence of deductible temporary difference or deductible loss of
13027941
unconfirmed deferred income tax assets in this period
Income tax expense 81765775
52. Other comprehensive incomes
Refer to Note 7.35 for details.
53. Items of cash flow statement
(1) Other cash received related to operating activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 19205955 30340645
138Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
Interest income 4736095 7777846
Net amercement income 91304 39759
Others 9735484 10735002
Total 33768838 48893252
(2) Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 201918055 239116719
Administrative expenses 31309835 37828283
Guaranteed deposits paid 6500000
Others 11493063 13297751
Total 244720953 296742753
(3) Other cash paid related to financing activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Cash paid for repurchase of B shares 7150483 150949941
Cash paid for leasing 11087384 14897311
Cash paid for acquiring minority shareholders’ equity 1883538
Total 18237867 167730790
Changes in various liabilities arising from financing activities
Unit: yuan
Increase in this period Decrease in this period
Beginning Ending
Item
balance Cash Non-cash Cash Non-cash balance
movement movement movement movement
Short-term loans 216140346 168981082 1499579 164267076 7419246 214934685
Long term loans (including long-term
111798781525145841421742838449578140081215
liabilities due within one year)
Lease liabilities (including lease liabilities due
4633102030626611108738438306297
within one year)
Other payables - dividends payable 270042634 269622514 420120
Other payables - interest payable 3701522 3701522
Other payables - accounts payable for
7070442670704426
repurchasing treasury shares
139Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Other payables – repurchasing B shares 7150483 7150483
Total 444974573 221495666 299674307 494278557 7419246 464446743
54. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: yuan
Supplementary materials Amount in this period Amount in prior period
1. Cash flows from operating activities calculated by adjusting
----
the net profit:
Net profit 191314730 221975355
Plus: Provision for impairment of assets 544907 -3058679
Depreciation of fixed assets oil-and-gas assets and
155214788162202787
productive biological assets
Depreciation of right-of-use assets 9436272 11023676
Amortization of intangible assets 8550554 8509160
Amortization of long-term deferred expenses 11085844 10492627
Losses on disposal of fixed assets intangible assets and
-361014-4647
other long-term assets (profit listed with “-”)
Losses on retirement of fixed assets (profit listed with
2138100317
“-”)
Losses on fair value change (profit listed with “-”)
Financial costs (profit listed with “-”) 2812883 6383382
Investment losses (profit listed with “-”) 3018088 1932092
Decrease in deferred income tax assets (increase listed
3400822040181622
with “-”)
Increase of deferred income tax liabilities (decrease
-511068-390206
listed with “-”)
Decrease in inventories (increase listed with “-”) -57846816 -121836747
Decrease in operating receivables (increase listed with
141442102423502362
“-”)
Increase in operating payable (decrease listed with “-”) -259290500 -582278932
Others 25146195
Net cash flows from operating activities 239421128 203880364
2. Significant investment and financing activities not involving
cash deposit and withdrawal:
Debt transferred into assets
140Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Supplementary materials Amount in this period Amount in prior period
Convertible corporate bond due within one year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent:
Ending balance of cash 1778740634 1562989249
Minus: Beginning balance of cash 1717727551 1963155752
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent 61013083 -400166503
(2) Composition of cash and cash equivalents
Unit: yuan
Item Ending balance Beginning balance
1. Cash 1778740634 1717727551
Including: Cash on hand 54828 27228
Bank deposits available for payment at any time 1735988452 1717700323
Other monetary funds available for payment at any time 42697354
Deposits with central bank available for payment
2. Cash equivalents
Including: Bond investment due within three months
3. Balance of cash and cash equivalents at the end of period 1778740634 1717727551
55. Monetary items of foreign currency
(1) Monetary items of foreign currency
Ending balance at foreign Ending balance at RMB
Item Converted exchange rate
currency equivalent
Monetary capital 46228635
Including: USD 487272 7.1586 3488185
EUR 5129 8.4024 43096
HKD 46819841 0.9120 42697354
Accounts receivable 54674291
Including: USD 6308823 7.1586 45162340
EUR 311811 8.4024 2619961
HKD
141Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Ending balance at foreign Ending balance at RMB
Item Converted exchange rate
currency equivalent
GBP 701118 9.8300 6891990
Short-term borrowings 95249453
Including: USD 13325000 7.1586 95249453
EUR
HKD
----
(2) The Company’s overseas subsidiaries determine their functional currency based on the currency
in the main economic environment in which they operate. The functional currency of Atrio and
Francs Champs Participations SAS (“Farshang Holdings”) is Euro the functional currency of Chile
Indomita Wine Group is Chilean Peso and the functional currency of Australia Kilikanoon Estate is
Australian Dollar.
8. R&D expenditure
Item Amount incurred in this period Amount incurred in prior period
Employee compensation 2336948 1743745
Test and laboratory fees 175737 117777
Consulting fees 1546712 1646916
Consumption of materials 1188000 176976
Others 3824569 3063261
Total 9071966 6748675
Including: Expensing research and development expenses 9071966 6748675
Capitalized research and development expenses
9. Change of scope of consolidation
In the reporting period no change was included to the consolidation scope of the Group:
142Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
10. Equity in other entities
1. Equity in subsidiaries
(1) Constitution of enterprise group
Name of subsidiary Registered Principal Registration Business Proportion of Acquisition
capital business place nature shareholding mode
location Dire Indirec
ct t
Etablissements Roullet Fransac EUR29000 Cognac Cognac Trading 100 Acquired from a
(“Roullet Fransac”) France France business
combination under
non-common
control
Dicot Partners S.L (“Dicot”) EUR2000000 Navarre Spain Navarre Spain Sales 90 Acquired from a
business
combination under
non-common
control
Vi?aIndómita CLP31100000000 Santiago Santiago Sales 85 Acquired by
S.A.Vi?aDosAndes S.A. and Chile Chile establishment or
BodegasSanta Alicia SpA. investment
(“IndomitaWine”)
Kilikanoon Estate Pty Ltd. AUD6420000 Adelaide Adelaide Sales 99 Acquired from a
(“Australia Kilikanoon Estate”) Australia Australia business
combination under
non-common
control
Beijing Changyu Sales and RMB1000000 Beijing China Beijing China Sales 100 Acquired byDistribution Co. Ltd. (“Beijing establishment orSales”) investment
Yantai Kylin Packaging Co. RMB15410000 Yantai Yantai Manufacturing 100 Acquired by
Ltd. (“Kylin Packaging”) Shandong Shandong establishment or
China China investment
Yantai Chateau USD5000000 Yantai Yantai Manufacturing 70 Acquired by
Changyu-Castel Co. Ltd. Shandong Shandong establishment or
(“Chateau Changyu”) (a) China China investment
Changyu (Jingyang) Wine Co. RMB1000000 Xianyang Xianyang Manufacturing 90 10 Acquired by
Ltd. (“JingyangWine”) Shaanxi Shaanxi establishment or
China China investment
Yantai Changyu Pioneer Wine RMB8000000 Yantai Yantai Sales 100 Acquired bySales Co. Ltd. (“Sales Shandong Shandong establishment orCompany”) China China investment
Shanghai Changyu Sales and RMB1000000 Shanghai Shanghai Sales 100 Acquired by
Distribution Co. Ltd. China China establishment or
(“Shanghai Sales”) investment
Beijing Changyu AFIP RMB1000000 Miyun Miyun Sales 100 Acquired by
Agriculture development Co. Beijing China Beijing China establishment orLtd. (“Agriculture investmentDevelopment”)
Beijing Chateau Changyu AFIP RMB642750000 Beijing China Beijing China Manufacturing 91.53 Acquired by
Global Co. Ltd. (“AFIP”) (b) establishment or
investment
Yantai Changyu Wine Sales RMB5000000 Yantai Yantai Sales 90 10 Acquired by
Co. Ltd. (“Wines Sales”) Shandong Shandong establishment or
China China investment
Yantai Changyu Pioneer RMB5000000 Yantai Yantai Sales 70 30 Acquired by
143Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
International Co. Ltd. Shandong Shandong establishment or
(“Pioneer International”) China China investment
Hangzhou ChangyuWine Sales RMB500000 Hangzhou Hangzhou Sales 100 Acquired byCo. Ltd. (“Hangzhou Zhejiang Zhejiang establishment orChangyu”) China China investment
Ningxia Changyu Grape RMB1000000 Yinchuan Ningxia Planting 100 Acquired byGrowing Co. Ltd. (“Ningxia Ningxia China establishment orGrowing”) China investment
Huanren Changyu National RMB2000000 Benxi Benxi Sales 100 Acquired by
Wines Sales Co. Ltd. Liaoning Liaoning establishment or
(“NationalWines”) China China investment
Liaoning Changyu Golden RMB64687300 Benxi Benxi Manufacturing 100 Acquired by
Icewine Valley Co. Ltd. Liaoning Liaoning establishment or
(“Golden Icewine Valley”) China China investment
Yantai Development Zone RMB5000000 Yantai Yantai Sales 100 Acquired by
Changyu Trading Co. Ltd. Shandong Shandong establishment or
(“Development Zone Trading”) China China investment
Beijing AFIP Meeting Center RMB500000 Miyun Miyun Services 100 Acquired by
(“Meeting Center”) Beijing China Beijing China establishment or
investment
Beijing AFIP Tourism and RMB500000 Miyun Miyun Tourism 100 Acquired by
Culture (“AFIP Tourism”) Beijing China Beijing China establishment or
investment
Changyu (Ningxia) Wine Co. RMB1000000 Ningxia Ningxia Manufacturing 100 Acquired by
Ltd. (“NingxiaWine”) China China establishment or
investment
Yantai Changyu Chateau Tinlot RMB400000000 Yantai Yantai Wholesale and 65 35 Acquired by
Co. Ltd. (“Chateau Tinlot”) Shandong Shandong retail establishment or
China China investment
Xinjiang Chateau Changyu RMB550000000 Shihezi Shihezi Manufacturing 100 Acquired by
Baron Balboa Co. Ltd. Xinjiang Xinjiang establishment or
(“Chateau Shihezi”) China China investment
Ningxia Chateau Changyu RMB2000000 Yinchuan Yinchuan Manufacturing 100 Acquired byLongyu Co. Ltd. (“Chateau Ningxia Ningxia establishment orNingxia”) China China investment
Shaanxi Chateau Changyu RMB20000000 Xianyang Xianyang Manufacturing 100 Acquired byRena Co. Ltd. (“Chateau Shaanxi Shaanxi establishment orChang’an”) China China investment
Yantai Changyu Wine RMB805000000 Yantai Yantai Manufacturing 100 Acquired by
Research Development and Shandong Shandong establishment or
Manufacturing Co. Ltd. China China investment
(“R&D Centre”)
Xinjiang Changyu Sales Co. RMB10000000 Shihezi Shihezi Sales 100 Acquired by
Ltd. (“Xinjiang Sales”) Xinjiang Xinjiang establishment or
China China investment
Ningxia Changyu Trading Co. RMB1000000 Yinchuan Yinchuan Sales 100 Acquired by
Ltd. (“Ningxia Trading”) Ningxia Ningxia establishment or
China China investment
Shaanxi Changyu Rena Wine RMB3000000 Xianyang Xianyang Sales 100 Acquired bySales Co. Ltd. (“Shaanxi Shaanxi Shaanxi establishment orSales”) China China investment
Penglai Changyu Wine Sales RMB5000000 Penglai Penglai Sales 100 Acquired by
Co. Ltd. (“Penglai Wine”) Shandong Shandong establishment or
China China investment
Laizhou Changyu Wine Sales RMB1000000 Laizhou Laizhou Sales 100 Acquired by
Co. Ltd. (“Laizhou Sales”) Shandong Shandong establishment or
China China investment
FrancsChampsParticipationsSA EUR32000000 Cognac Cognac Investment 100 Acquired by
S (“Francs Champs”) France France and trading establishment or
investment
144Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Yantai Roullet Fransac Wine RMB1000000 Yantai Yantai Sales 100 Acquired bySales Co. Ltd. (“Yantai Roullet Shandong Shandong establishment orFransac”) China China investment
Yantai Changyu Wine Sales RMB5000000 Yantai Yantai Sales 100 Acquired byCo. Ltd. (“Wine Sales Shandong Shandong establishment orCompany”) China China investment
Shaanxi Chateau Changyu RMB1000000 Xianxin Xianxin Tourism 100 Acquired by
Rena Tourism Co. Ltd. Shaanxi Shaanxi establishment or
(“Chateau Tourism”) China China investment
Longkou Changyu Wine Sales RMB1000000 Yantai Yantai Sales 100 Acquired by
Co. Ltd. (“Longkou Sales”) Shandong Shandong establishment or
China China investment
Yantai Changyu Cultural RMB10000000 Yantai Yantai Tourism 100 Acquired by
Tourism Development Co. Shandong Shandong establishment orLtd. (“Changyu Cultural China China investmentTourism Company”)
Yantai Changyu Wine Culture RMB500000 Yantai Yantai Tourism 100 Acquired by
Museum Co. Ltd. (“Museum”) Shandong Shandong establishment or
China China investment
Yantai Changyu Cultural RMB5000000 Yantai Yantai Tourism 100 Acquired by
Tourism Product Sales Co. Shandong Shandong establishment or
Ltd. (“Cultural Sales”) China China investment
Yantai Changyu Window of RMB60000000 Yantai Yantai Tourism 100 Acquired by
International Wine City Co. Shandong Shandong establishment or
Ltd. (“Window ofWine City”) China China investment
Yantai Chateau Koya Brandy RMB10000000 Yantai Yantai Manufacturing 100 Acquired by
Co. Ltd. (“Chateau Koya”) Shandong Shandong establishment or
China China investment
Changyu (Shanghai) RMB50000000 Hongkou Hongkou Sales 100 Acquired by
International Digital Marketing Shanghai Shanghai establishment orCenter Co. Ltd. (“Digital China China investmentMarketing”)
Shanghai Changyu Guoqu RMB6000000 Hongkou Hongkou Sales 51 Acquired by
Digital Technology Co. Ltd. Shanghai Shanghai establishment or
(“Shanghai Guoqu”) China China investment
Tianjin Changyu Yixin Digital RMB10000000 Binhai New Binhai New Sales 51 Acquired byTechnology Co. Ltd. (“Tianjin Area Tianjin Area Tianjin establishment orYixin”) China China investment
Shanghai Changyu Yixin RMB10000000 Hongkou Hongkou Sales 51 Acquired by
Digital Technology Co. Ltd. Shanghai Shanghai establishment or
(“Shanghai Yixin”) China China investment
Yantai Christon Catering Co. RMB1000000 Yantai Yantai Services 100 Acquired by
Ltd. (“Christon Catering”) Shandong Shandong establishment or
China China investment
Weimeisi (Shanghai) Enterprise RMB10000000 Shanghai Shanghai Sales 100 Acquired by
Development Co. Ltd. China China establishment or
(“Weimeisi Shanghai”) investment
Ningxia Longyu Food Trading RMB 500000 Yinchuan Yinchuan Sales 100 Acquired by
Co. Ltd. (“Longyu Trading”) Ningxia Ningxia establishment or
China China investment
Beijing Changyu Trading Co. RMB 500000 Miyun Miyun Sales 100 Acquired by
Ltd. (“Beijing Trading”) Beijing China Beijing China establishment or
investment
Huanren Manchu Autonomous RMB 2000000 Benxi Benxi Sales 100.00 Acquired by
County Changyu Liquor Liaoning Liaoning establishment or
Industry Sales Co. Ltd. China China investment
(“Huanren Sales”)
Explanation for difference between the proportion of shareholding and proportion of voting power
145Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
in the subsidiaries:
(a) Chateau Changyu is a Sino-foreign joint venture established by the Company and a foreign
investor accounting for 70% of the Company’s equity interest. Through agreement arrangement
the Company has the full power to control Changyu Chateau’s strategic operating investing and
financing policies. This agreement arrangement will expire on December 31 2027.(b) AFIP is a limited liability company jointly established by the Company and Yantai De’an
Investment Co. Ltd. and Beijing Qinglang Agriculture Ecology Science Development Co. Ltd..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 2027.
(2) Important non-wholly-owned subsidiaries
Unit: yuan
Other Dividend declared
Profit/loss
Shareholding comprehensive to
attributable to Balance of minority
proportion of income attributable be distributed to
Name of subsidiary minority equity at the end of
minority to minority minority
shareholders in this period
shareholders shareholders in this shareholders in
period
period this period
AFIP 8.47% 56409393
Indomita Wine 15% 283751 616470.00 888662.00 56697938.00
Explanation for difference between the proportion of shareholding and proportion of voting power
of the minority shareholders in the subsidiaries: See details in Note 10.1.1.
146Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
(3) Main financial information of important non-wholly-owned subsidiaries
Unit: yuan
Ending balance Beginning balance
Name of subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
AFIP 266465641 363571682 630037323 17310505 3501580 20812085 256982569 373266371 630248940 16704310 3708917 20413227
Indomita Wine 223783829 307211974 530995803 137954208 7497696 145451904 237880401 306022908 543903309 150938775 7497696 158436471
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Name of subsidiary Operating Total comprehensive Total comprehensive
Net profit Operating cash flow Operating income Net profit Operating cash flow
income income income
AFIP 41907720.39 -610475.00 -610475.00 1061336 37074167.52 -4006527 -4006527 11629017
Indomita Wine 78447574 1891672 6001476 1874075 80158645 -528407 -6000876 14619452
147Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
2. Equity in joint ventures or associates
Summary financial information of unimportant joint ventures and associates
Unit: yuan
Ending balance / amount incurred Beginning balance / amount incurred
in this period in prior period
Joint ventures: -- --
Total book value of investment 30252089 32797631
Total of the following items calculated
according to the shareholding ratio
-- Net profit -2545542 -1874370
-- Other comprehensive income
-- Total comprehensive income -2545542 -1874370
Associates:
Total book value of investment 1594571 2067117
Total of the following items calculated
according to the shareholding ratio
-- Net profit -472546 -57722
-- Other comprehensive income
-- Total comprehensive income -472546 -57722
11. 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 analyze 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
148Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
conditions and the Group’s activities.
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 2025 the Group’s maximum exposure to credit risk which will cause a financial
loss to the Group due to failure to discharge an obligation by the counterparties.In order to minimize the credit risk the Group has adopted a policy to ensure that all sales
customers have good credit records. According to the policy of the Group credit review is
required for clients who require credit transactions. In addition the Group continuously
monitors the balance of account receivable to ensure there’s no exposure to significant bad
debt risks. For transactions that are not denominated in the functional currency of the relevant
operating unit the Group does not offer credit terms without the specific approval of the
Department of Credit Control in the Group. In addition the Group reviews the recoverable
amount of each individual trade debt at each balance sheet date to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard the management of the
Group considers that the Group's credit risk is significantly reduced.Since the Group trades only with recognized and creditworthy third parties there is no
requirement for collateral. Concentrations of credit risk are managed by customer/counterparty
by geographical region and by industry sector. As at June 30 2025 23.5% of the Group trade
receivables are due from top five customers (December 31 2024: 42.1%). There is no
collateral or other credit enhancement on the balance of the trade receivables of the Group.
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 Group and its individual
subsidiaries are responsible for their own cash management including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands (subject to approval
by the Group’s board when the borrowings exceed certain predetermined levels). The Group’s
policy is to regularly monitor its liquidity requirements and its compliance with lending
covenants to ensure that it maintains sufficient reserves of cash readily realizable marketable
securities and adequate committed lines of funding from major financial institutions to meet its
liquidity requirements in the short and longer term.
3. Interest rate risk
149Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk respectively. The Group determines the
appropriate weightings of the fixed and floating rate interest-bearing instruments based on the
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure.
(1) As at June 30 2025 the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: yuan
June 30 2025 December 31 2024
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 1.3%-2.25% 57650000 1.70% - 2.25% 78650000
Financial liabilities ? ?
- Short-term loans 5.53% ~ 5.94% -95249453 5.53% - 5.94% -97958247
- Long-term loans (including the
portion due within one year) 4.65% -5729315 2.80% - 4.65% -6342368
- Lease liabilities (including the
portion due within one year) 4.65% -38306297 4.65% -46331020
Total -81635065 ? -71981635
Variable rate instruments:
Unit: yuan
June 30 2025 December 31 2024
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 0.20% - 0.35% 1781386300 0.20% - 0.35% 1718853538
Financial liabilities
- Short-term loans 1-year LPR- 0.95% -50000000 1-year LPR- 0.95% -50000000
- Short-term loans BBSW (3 months)+1.1 -2340850 BBSW + 1.5% -26365950
5%
- Short-term loans 2.20% - 4.65% -67344382 3.41% - 4.65% -41816149
- Long-term loans (including the
portion due within one year) 3.25%-5.83%? -134351900 3.41% - 7.59% -105456413
Total 1527349168 1495215026
(2) Sensitivity analysis
Management of the Group believes interest rate risk on bank deposit is not significant
150Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
therefore does not disclose sensitivity analysis for interest rate risk.As at June 30 2025 based on assumptions above it is estimated that a general increase of 50
basis points in interest rates with all other variables held constant would decrease the Group’s
equity by RMB 476320 yuan (2024: RMB 838644 yuan) and net profit by RMB 476320
yuan (2024: RMB 838644 yuan).The sensitivity analysis above indicates the instantaneous change in the net profit and equity
that would arise assuming that the change in interest rates had occurred at the balance sheet
date and had been applied to re-measure those financial instruments held by the Group which
expose the Group to fair value interest rate risk at the balance sheet date. In respect of the
exposure to cash flow interest rate risk arising from floating rate non-derivative instruments
held by the Group at the balance sheet date the impact on the net profit and equity is estimated
as an annualized impact on interest expense or income of such a change in interest rates.
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 2025 the Group’s exposure to currency risk arising from recognised assets
or liabilities denominated in foreign currencies is presented in the following tables. For
presentation purposes the amounts of the exposure are shown in Renminbi translated using
the spot rate at the balance sheet date. Differences resulting from the translation of the
financial statements denominated in foreign currency are excluded.Unit: yuan
June 30 2025 December 31 2024
Item Balance at foreign Balance at RMB Balance at foreign Balance at RMB
currency equivalent currency equivalent
Monetary capital 46228635 6988013
- USD 487272 3488185 906574 6516817
- EUR 5129 43096 62611 471195
- HKD 46819841 42697354 2 1
Short-term loans 95249453 97958247
- USD 13325000 95249453 13375000 97958247
(2) Sensitivity analysis
Assuming all other risk variables remained constant a 5% strengthening of the Renminbi
against the US dollar and Euro at June 30 2025 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
151Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Equity Net profit
June 30 2025
USD 4588063 4588063
EUR -2155 -2155
HKD -2134868 -2134868
Total 2451040 2451040
December 31 2024
USD 3433649 3433649
EUR -17200 -17200
HKD
Total 3416449 3416449
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30 2025
would have had the equal but opposite effect to the amounts shown above on the basis that all
other variables remained constant.
12. 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 2025.
13. Related parties and related transactions
1. Particulars of the parent company of the Company
Name of parent Registration Registered Proportion of Proportion of voting
Business nature shareholding of the parent powers of the parent
company place capital company in the Company company in the Company
Changyu Group Yantai City Manufacturing industry 50000000 51.4% 51.4%
From January to June 2025 there was no fluctuation in the registered capital of the parent company
and its share in equity interest and voting right.
2. Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 10.
3. Information about joint ventures and associates of the Company
Other joint ventures and associates that have related party transactions with the Group during this
period or that formed balance when having related party transactions with the Group during the
prior period are as follows:
Name of joint ventures and associates Relationship with the Company
152Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
L&M Holdings Joint venture of the Group
Shanghai Yufeng Brand Management Co. Ltd. (“Shanghai Yufeng”) Associates of the Group
Yantai Guolong Wine Industry Co. Ltd. (“Yantai Guolong”) Associates of the Group
Taizhou Changyu Winery Wine Sales Co. Ltd. (“Taizhou Changyu”) Associates of the Group
4. Particulars of other related parties
Relationship between other related parties and the
Name of other related parties
Company
Yantai God Horse Packing Co. Ltd. (“God Horse Packing”) A company controlled by the same parent company
Appointment of directors supervisors and senior
Yantai Zhongya Zhibao Pharmaceutical Co. Ltd. (“Zhongya Zhibao”)
executives of the Group
Societe Civile Argricole Du Chateau De Mirefleurs (“French Mirefleurs”) Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”) Subsidiaries of the joint venture
Yantai Changyu Wine Culture Museum (“Museum”) Non-profit organizations related to the Company
5. Related transactions
(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 27190017 34253399
Zhongya Zhibao Purchasing goods 24837 13392
French Mirefleurs Purchasing goods 8051588.00 4472158
Shanghai Yufeng Purchasing goods 25442
List of selling goods/providing services
Unit: yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
Zhongya Zhibao Selling goods 2223769 2424638
God Horse Packing Selling goods 3008 34593
Shanghai Yufeng Selling goods 344063 950113
Yantai Guolong Selling goods 12309013
Taizhou Changyu Selling goods 8489159
153Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
The price of transactions between the Group and the related parties are based on the negotiated
price.
(2) Related trusteeship/contracting and mandatory administration/outsourcing
Nil
(3) Leasing with related parties
The Group as a lessor:
Unit: yuan
Rental income recognized in Rental income recognized in prior
Name of the lessee Type of leased assets
this period period
God Horse Packing Office building and plant 746275 774705
Zhongya Zhibao Office building 481905 481905
154Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
The Group as a lessee:
Unit: yuan
Rental expenses for
Variable lease payments not
short-term leases and leases
included in the measurement Interest expenses on Right-of-use assets
of low-value assets of Rent paid
of lease liabilities (if lease liabilities assumed increased
simplified treatment (if
applicable)
Name of the lessor Type of leased assets applicable)
Amount Amount Amount Amount
Amount Amount Amount Amount Amount Amount
incurred incurred in incurred incurred
incurred in incurred in incurred in incurred in incurred in incurred in
in this prior in prior in prior
prior period this period prior period this period this period this period
period period period period
Office building plant
Changyu Group 7480362 7480362 185036 490777
commercial building
155Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
(4) Related guarantee
Nil
(5) Inter-bank borrowing and lending of related parties
Nil
(6) Asset transfer and debt recombination of related parties
Nil
(7) Other related transactions
Unit: yuan
Amount incurred in prior
Related party Item Amount incurred in this period
period
Changyu Group Trademark use fee 5451141 7858547
The price of transactions between the Group and the related parties are based on the
negotiated price.
6. Accounts receivable and payable of the related parties
(1) Accounts receivable
Unit: yuan
Ending balance Beginning balance
Item Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
Zhongya Zhibao 2045804 796.00 1041839 1126
receivable
Accounts
Museum 416500 162.00 416500 450
receivable
Prepayment French Mirefleurs 569480.00 5346651
Prepayment God Horse 112579
Packing
(2) Accounts payable
Unit: yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 14624438 20649261
Accounts payable Zhongya Zhibao 1133362
Accounts payable Shanghai Yufeng 32148 7318
Liabilities of contracts Taizhou Changyu 4680 5927230
Liabilities of contracts Yantai Guolong 51696 51696
Liabilities of contracts God Horse Packing 11835 11835
156Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Other payable Changyu Group 8066531 18630742
Other payable God Horse Packing 400000 400000
Other payable Yantai Guolong 50000
14. Share-based payment
1. Overall situation of share-based payment
According to the resolution of 2022 Annual General Shareholders’ meeting held by the Group
on May 26 2023 and the approved Proposal on 2023 Restricted Stock Incentive Plan (Draft)
of the Company and Its Abstract and Proposal on Requesting the General Shareholders’
meeting to Authorize the Board of Directors to Handle Matters Related to 2023 Restricted
Stock Incentive Plan of the Company and the Proposal on Adjusting Relevant Matters of
2023 Restricted Stock Incentive Plan and the Proposal on Granting Restricted Stocks to
Incentive Objects of 2023 Restricted Stock Incentive Plan which were reviewed and
approved at the first 2023 extraordinary board meeting held on June 26 2023 the Group has
determined June 26 2023 as the grant date to grant 6850000 restricted stocks to 204
incentive objects at a grant price of 15.24 yuan per stock. A total of 203 incentive objects in
this Group actually subscribed for 6785559 restricted stocks with a grant price of 15.24
yuan per stock. This transaction increases the registered capital by RMB 6785559 yuan and
increases the capital reserve by RMB 96626360 yuan.All restricted stocks granted to incentive objects are subject to different lock-up periods
which are 12 months 24 months and 36 months respectively from the completion of grant
registration of restricted stocks granted to incentive objects. The restricted stocks granted to
incentive objects under this incentive plan shall not be transferred used as collateral or used
to repay debts during the lock-up period. All restricted stocks granted to incentive objects will
be unlocked in three phases after 12 months from the grant date with unlocking ratios of
30% 30% and 40% for each phase. The corresponding unlocking dates are 1 year 2 years
and 3 years from the grant date. The actual unlocking quantity shall be linked to the annual
performance evaluation.When the performance of this Company meets corresponding conditions the unlocking ratio
of the above-mentioned restricted stocks for the current period is determined based on the
operating performance of the incentive object’s unit and the value contribution of the
incentive object. If the unlocking conditions stipulated in this plan are not met the incentive
object shall not unlock restricted stocks in the current period and the Company shall
repurchase them according to the grant price to incentive object.The Group held its fourth 2024 extraordinary board meeting on July 22 2024 and reviewed
and approved the Proposal on Achievement of the First Lifting of Lock-up Period and Lifting
of Lock-up Conditions for Company’s 2023 Restricted Stock Incentive Plan and Proposal on
Achievement of the First Lifting of Lock-up Period and Lifting of Lock-up Conditions for
Company’s 2023 Restricted Stock Incentive Plan. At the third extraordinary general
shareholders’ meeting held on August 8 2024 the resolution on the Proposal on the
Repurchase and Cancellation of Part of the Restricted Shares under the Company’s 2023
Restricted Stock Incentive Plan and Adjustment of the Repurchase Price was approved. A
total of 172 incentive recipients of the first tranche of restricted shares in 2024 have been
157Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
lifted from the lock-up conditions the number of restricted stocks that can be lifted is
1720495. The listing and circulation date of the restricted shares released from the lock-up
conditions is August 6 2024. This transaction resulted in a decrease in treasury shares of
RMB 26220343 yuan. A total of 425666 restricted shares were repurchased and cancelled
including 157790 shares repurchased and cancelled because the incentive recipients no
longer met the conditions of the Company’s 2023 Restricted Stock Incentive Plan due to
resignation or position changes and 267876 shares repurchased and cancelled because they
could not be lifted from the first lock-up period due to personal performance assessment
results. This transaction led to a decrease in share capital of RMB 425666 yuan a decrease
in capital reserve of RMB 6061484 yuan and a decrease in treasury shares of RMB
6487150 yuan.
As the performance targets required by the incentive plan were expected not to be achieved
at the end of 2024 RMB 4016468 yuan of equity-settled share-based payment costs
previously recognized by the Group were reversed in the consolidated financial statements.As of June 30 2025 the cumulative amount of equity-settled share-based payments
recognized in capital reserve amounted to RMB 26719287 yuan.
2. Equity-settled share-based payments
Unit: yuan
Method for determining the fair value of equity instruments on
Restricted stock: stock price on grant date minus grant price
grant date
Basis for determining the number of exercisable equity
Management’s best estimate
instruments
Reasons for significant differences between the current
estimate and the prior estimate
Accumulated amount of equity-settled share-based payments
26719287
included in capital reserve
Total amount of expenses recognized as equity-settled
share-based payments in this period
15. Commitment and contingency
1. Significant commitment
Unit: yuan
Item Ending balance Beginning balance
Making long-term asset commitments 31902000 41228000
2. Contingency
As of the balance sheet date the Group didn’t have any contingency to be disclosed.
16. Matters after balance sheet
1. Important non-adjusting events
On July 25 2025 the second meeting of the tenth Board of Directors reviewed and
approved the Proposal on Non-Achievement of the Second Lifting of Lock-up Period and
158Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Lock-up Conditions for the Company’s 2023 Restricted Stock Incentive Plan and
Proposal on Achievement of the First Lifting of Lock-up Period and Lifting of Lock-up
Conditions for Company’s 2023 Restricted Stock Incentive Plan on August 12 2025 the
first extraordinary general shareholders’ meeting in 2025 approved the Proposal on
Achievement of the First Lifting of Lock-up Period and Lifting of Lock-up Conditions for
Company’s 2023 Restricted Stock Incentive Plan. As the second lock-up period of the
Company’s 2023 Restricted Stock Incentive Plan did not meet the conditions for lifting
the lock-up the Company repurchased and cancelled the relevant granted restricted
shares. Due to failure to meet performance assessment requirements and due to
employee resignation or position changes the incentive qualification of the affected
recipients was cancelled and a total of 2153772 restricted shares that had been granted
but not yet released from lock-up were repurchased and cancelled at a repurchase price
of RMB 14.65 yuan per share. The total repurchase consideration payable by the
Company for this repurchase and cancellation is RMB 31552800 yuan. Upon
completion of this repurchase and cancellation the total number of shares of the
Company will decrease from 671823900 shares to 669670128 shares. This repurchase
and cancellation will not result in any change in the controlling shareholder or actual
controller of the Company.
17. Other important matters
Nil
18. Notes on major items in financial statements of the parent company
1. Accounts receivable
(1) Disclosed by age
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 1332445 227041
1-2 years
2-3 years
More than 3 years
Total 1332445 227041
(2) Disclosed by classification of bad debt provision methods
Unit: yuan
Ending balance Beginning balance
Category Book balance Bad-debt provision Book balance Bad-debt provisionBook Book
Amount Proportion Amount Proportion valueof accrual Amount Proportion Amount
Proportion value
of accrual
Accounts receivable
with bad-debt
provision accrued on
a single item basis
159Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Accounts receivable
with bad-debt
provision accrued on 1332445 100% 533 0.04% 1331912 227041 100% 245 0.10% 226796
a combined basis
Total 1332445 100% 533 0.04% 1331912 227041 100% 245 0.10% 226796
Particulars of provision for bad debts accrued in this period:
Unit: yuan
Change amount in this period
Category Beginning Withdrawn or Cancelledbalance Ending balanceAccrued transferred back afterverification
Accounts receivable
with bad-debt provision
accrued on a single item
basis
Bad-debt provision
accrued on a combined 245 288 533
basis
Total 245 288 533
(3) Accounts receivable actually cancelled after verification in this period
Nil
(4) Accounts receivable and contract assets collected by borrower of top 5 units ranked
by ending balance
Unit: yuan
Ending balance of
Proportion in the bad-debts provision
Ending balance of Ending Ending balance of total ending balance of accounts
Unit Name accounts balance of accounts receivable of accounts receivable and
receivable contract assets and contract assets receivable and impairment
contract assets provision of
contract assets
Unit 1 1213656 1213656 91.1% 486
Unit 2 107789 107789 8.1% 43
Unit 3 11000 11000 0.8% 4
Total 1332445 1332445 100% 533
(5) Accounts receivable derecognized due to transfer of financial assets
Nil
(6) Accounts receivable transferred and included in assets and liabilities
Nil
160Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
2. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 3781080 130000000
Other receivables 574218796 822762563
Total 577999876 952762563
(1) Dividends receivable
Unit: yuan
Item (or the invested unit) Ending balance Beginning balance
Dividends receivable from subsidiaries 3781080 130000000
Total 3781080 130000000
(2) Other receivables
1) Particulars of other receivables classified by nature
Unit: yuan
Nature Ending balance Beginning balance
Accounts receivable from subsidiaries 480588295 615371507
Others 93630501 207391056
Total 574218796 822762563
2) Disclosed by age
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 574114324 822658091
1-2 years
2-3 years
More than 3 years 104472 104472
Total 574218796 822762563
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 the provision for
bad debts withdrawn or transferred back in this period was RMB 0 yuan
4) Other accounts receivable actually cancelled after verification in this period
Nil
161Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
5) Other accounts receivable collected by borrower of top 5 units ranked by ending
balance
Unit: yuan
Percentage in total Ending balance
Unit Nature of fund Ending balance Age ending balance of other of provision for
accounts receivable bad debts
Accounts receivable
Sales company 266356251 Within 1 year 46.4%
from subsidiaries
Accounts receivable
Atrio Group 136672987 Within 1 year 23.8%
from subsidiaries
Accounts receivable
Kilikanoon Estate 54142096 Within 1 year 9.4%
from subsidiaries
Accounts receivable
Chateau 8217516 Within 1 year 1.4%
from subsidiaries
Accounts receivable
Pioneer Wine Industry 7251826 Within 1 year 1.3%
from subsidiaries
Total 472640676 82.3%
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
3. Long-term equity investment
Unit: yuan
Ending balance Beginning balance
Item
Book balance Impairment Book value Book balance Impairment Book value
provision provision
Investment in subsidiaries 7737521508 48288589 7689232919 7737521508 48288589 7689232919
Investment in associated
enterprises and joint
Total 7737521508 48288589 7689232919 7737521508 48288589 7689232919
(1) Investment in subsidiaries
Unit: yuan
Invested unit Beginning Beginning Increase and decrease in this period Ending Ending
balance (book balance of Increase Decrease Provision Other balance (book balance of
value) impairment in in for value) impairment
162Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
provision investmen investmen impairmen s provision
t t t accrued
Kylin
2355393123553931
Packaging
Changyu
2928177229281772
Chateau
Pioneer
44647144464714
International
Ningxia
3657324736573247
Growing
National
20000002000000
Wine
Icewine
8563847285638472
Valley
AFIP 588648215 588648215
Sales
1895211218952112
Company
Wine Sales 5109166 5109166
Shanghai
10000001000000
Marketing
Beijing Sales 850000 850000
Jingyang
900000900000
Wine
Ningxia Wine 222309388 222309388
Ningxia
453760284453760284
Chateau
Chateau
212039586212039586
Tinlot
Shihezi
812311899812311899
Chateau
Chang’an
804205930804205930
Chateau
R&D
32902685503290268550
Company
Wine Sales
51051305105130
Company
Francs
236025404236025404
Champs
Marques del
2219168101122545922191681011225459
Atrio
Indomita
274248114274248114
Wine
Australia
Kilikanoon 94096047 37063130 94096047 37063130
Estate
Digital
5019143950191439
Marketing
Chateau 110337503 110337503
163Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Koya
Shanghai
79109857910985
Weimeisi
Changyu
Cultural
9264956092649560
Tourism
Company
Development
837605837605
Zone Trading
Penglai Wine
831612831612
Industry
Longkou
16112861611286
Sales
Laizhou Sales 87342 87342
Yantai
Roullet 251196 251196
Fransac
Museum 265162 265162
Window of
470134470134
Wine City
AFIP
162952162952
Tourism
Meeting
102210102210
Center
Ningxia
162952162952
Trading
Christon
102210102210
Catering
Total 7689232919 48288589 7689232919 48288589
4. Operating income and operating cost
(1) Details of operating income
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 160834485 143910902 184420307 164861107
Others businesses 1760482 1355077 1479229 1245831
Total 162594967 145265979 185899536 166106938
Including: Income from contracts 160834485 143910902 184420307 164861107
Income from house rents 1760482 1355077 1479229 1245831
(2) Situation of income and cost from contracts
Unit: yuan
Contract classification Operating income Operating cost
164Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Contract classification Operating income Operating cost
Type of merchandise
- Alcoholic beverage 160834485 143910902
- Others
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 160834485 143910902
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 46246053 164552732
Income from long-term equity investment by equity
method
Investment income from disposal of long-term equity
investment
Investment income of the financial assets measured at
their fair values and the variation of which is recorded
into the current profits and losses during the holding
period
Investment income gained from disposal of the financial
assets measured at their fair values and the variation of
which is recorded into the current profits and losses
Investment income of held-to-maturity investment during
the holding period
Investment income of financial assets held for sale during
the holding period
Investment income gained from disposal of financial
assets held for sale
Gains generated from the remaining equity remeasured as
per fair value after the loss of control
Total 46246053 164552732
19. Supplementary materials
1. List of non-current profits/losses in this period
Unit: yuan
Item Amount Remark
Profits/losses on disposal of non-current assets 358876
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 19258546
the state)
Profits/losses on changes of fair value of financial assets and financial liabilities of
non-financial business and profits/losses from disposal of financial assets and financial
liabilities excluding effective hedging operations relevant to the normal business of the
Company
Payment for use of funds by non-financial enterprises included in the current profits/losses
Profits/losses on entrusting other people to make investment or manage assets
Profits/losses on external entrusted loans
165Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
Item Amount Remark
Asset impairment provision accrued due to force majeure such as natural disaster
Transfer-back of accounts receivable provision for impairment with single impairment test
Income obtained when the investment cost obtained by the enterprise from subsidiaries
joint-run business and joint venture is less than the fair value of the net identifiable assets
obtained from the invested units when the investment is made
Current net profits/losses on subsidiaries acquired from a business combination under common
control from the beginning to the consolidation date
Profits/losses on exchange of non-monetary assets
Profits/losses on debt restructuring
One-time expenses incurred by enterprises due to the discontinuation of related business
activities such as expenses for resettling employees etc
Influence of the one-time adjustment of the current profits/losses in accordance with tax and
accounting laws and regulations on the current profits/losses
One-time confirmation of share-based payment expenses due to cancellation or modification of
equity incentive plan
For cash-settled share-based payment profits/losses arising from changes in fair value of
employee compensation payable after the exercise date
Profits/losses on fair value changes of investment real estate with fair value mode for follow-up
measurement
Profits generated from transactions with unfair transaction price
Profits/losses on contingencies irrelated to the normal business of the Company
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items 330408
Other profits/losses conforming to the definition of non-recurrent profits/losses
Minus: Influenced amount of income tax 4948531
Influenced amount of minority equity 1561984
Total 13437315 --
2. Return on net assets and earnings per share
Earnings per shareProfit in reporting period Weighted averagereturn on net assets Basic EPS (yuan/Share) Diluted EPS(yuan/Share)）
Net profit attributable to common shareholders of the
Company 1.74% 0.28 0.28
Net profit attributable to common shareholders of the
Company deducting non-recurrent profits/losses 1.61% 0.26 0.26
3. Accounting data difference under domestic and foreign accounting standard
(1) Net profits & net assets difference disclosed in the financial report according to the
international accounting standard and Chinese accounting standard
Unit: yuan
Net profits Net assets
Amount incurred in Amount incurred in Ending balance Beginning balance
166Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
this period prior period
In accordance with the
Chinese accounting 185597142 221177382 10542508856 10619208419
standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 185597142 221177382 10542508856 10619208419
standard
167Yantai Changyu Pioneer Wine Co. Ltd. 2025 Semi-annual Report
IX. Other Submitted Data
1. Situations regarding other major social security issues
Are there any other major social security issues with the listed company and its subsidiaries
□Yes □No □Inapplicable
Whether administrative penalties were imposed during the reporting period
□Yes □No □Inapplicable
2. Registration form for receiving research communication interviews and other
activities during the reporting period
□Applicable □Inapplicable
Reception Type of Main discussed Basic situation
time Reception place
Reception Reception
pattern reception object contents and index ofobject provided data reception
The Company holds the
performance presentation The recent
meeting through the Network Institutions Online production and
2025.05.15 “Investor Relations platform online and questions from operation The Record ofInteractive Platform” communication individuals investors situation of the Investor-relati
(https://ir.p5w.net) in a Company ons Activity
remote way disclosed on
Shenzhen
Investor The recent Stock
The meeting room of the Institutions communication production and Exchange2025.05.23 Company Field research and at the operationindividuals Shareholders’ situation of the
Meeting Company
3. Capital transactions between the listed company and its controlling shareholders and
other related parties
□Applicable □Inapplicable
Yantai Changyu PioneerWine Co. Ltd.Board of Directors
August 28 2025
168
沪公网安备31011802005267号
