Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Co. Ltd.2025 Annual Report
Final 2026-01
April 18 2026
1Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Contents
I、Important Notice Contents and Definition .......... 3
II、Brief Introduction for the Company and Main Fin....6
III、Management Discussion and Analysis ............. 11
IV、Corporate Governance Environmental and Social R...37
V、 Major issues .....................................64
VI、Changes in Shares and Shareholders’ Situation ... 73
VII、Related Situation of Bonds ......................83
VIII、Financial Report ...............................83
2Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
I. Important Notice Contents and Definition
The board of directors directors and senior executives of the Company guarantee the truthfulness
accuracy and completeness of the contents contained in the 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) Ms. Cuimei Guo (Person in charge of
accounting work and Person in charge of accounting organ & Accountant in charge) assure the
truthfulness accuracy and completeness of the financial report in the annual report.All directors attended this board meeting for reviewing this 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.About significant risks that may be faced in production and operation process please refer to “(5)Potential Risks” of “11. Expectation for the Company’s Future Development” in the “III.Management Discussion and Analysis” of this report. Investors are advised to read carefully and
pay attention to investment risks.The Company’s preliminary scheme of profit distribution deliberated and passed by the board of
directors this time is shown as following: Based on the Company’s total 657240128 shares the
Company plans to pay CNY2.5 (including tax) in cash as dividends for every 10 shares to all
shareholders and send 0 bonus share (including tax); capital reserve will not be transferred to
equity.
3Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Reference Documents
(1)The original of Annual Report autographed by the Chairman.
(2)The Financial Statements autographed and signed by the Chairman Chief Accountant and
Accountant in Charge.
(3)The Prospectus and Public Offering Announcement for Stock B issued in 1997; The Prospectus
of Intent and The Shares’ Change & A Share’s Public Offering Announcement for Stock A issued
by the capital increase 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 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 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 —
Place of Stock Listing Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese Name 张裕
Legal Name in English YANTAI CHANGYU PIONEER WINE COMPANY LIMITED
Abbreviation of English Name CHANGYU
Legal Representative Hongjiang ZHOU
Registered Address 56 Dama Road Yantai Shandong China
Postal Code of Registered Address 264000
Historical Change in Registered Address —
Office Address 56 Dama Road Yantai Shandong China
Postal Code of Office Address 264000
Website http://www.changyu.com.cn
E-mail webmaster@changyu.com.cn
2. Contact person and information
Secretary to 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. Information disclosure and filing location
Stock exchange website for
disclosing annual report Shenzhen Stock Exchange (http://www.szse.cn)
Media name and website for China Securities Newspaper Securities Times Hong Kong
disclosing annual report Commercial Daily and CNINFO website (http://www.cninfo.com.cn)
Filing location of the Company’s Board of Directors’ Office of the Company 56 Dama Road Yantai
annual report Shandong
6Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
4. Registration changes
Unified Social Credit Code 913700002671000358
The business scope determined by the Company when it was established
on September 18 1997 is production processing and sales of wine
distilled liquor healthy liquor fruit liquor non-alcohol beverage fruit
jam packing material and winemaking machine.On April 17 2008
approved by the 2007 Annual Shareholders’ Meeting the Company’s
business scope was changed to production processing and sales of wine
distilled liquor medicinal liquor fruit liqueur non-alcohol beverage
fruit jam packing material and winemaking machines; licensed import
and export. On May 12 2010 approved by the 2009 Annual
Shareholders’ Meeting the Company’s business scope was changed to
Changes for the main businesses production processing and sales of wine distilled liquor medicinal
of the Company since it was listed liquor fruit liqueur non-alcohol beverage fruit jam packing material
(if have) and its products and winemaking machinery; licensed import and
export; external investment subject to national policy. On September 23
2016 approved by The 1st Interim Shareholders’ Meeting in 2016 the
Company’s business scope was changed to production of wine and fruit
wine (bulk wine processing and filling); production of blending liquor
and other blending liquors (grape liqueur); production of other liquors
(other distilled liquors); production processing and sales of packing
material and winemaking machines; grape plantation and procurement;
tourism resources development (excluding tourism); packaging design;
activity of building rental; licensed import and export;
warehouse business; external investment subject to national policy.Changes for all previous
controlling shareholders No
5. Other relevant information
The accounting firm appointed by the Company
Name KPMG Huazhen LLP
Address Level 8 No.2 East Wing of Dongfang Square No.1 East Chang’anStreet Beijing
Name of signatory accountants Jia WANG Zhichao LIU
The sponsor institution appointed by the Company to perform the duty of continuous supervision
during the report period
□Applicable Inapplicable
The financial adviser appointed by the Company to perform the duty of continuous supervision
during the report period
□Applicable Inapplicable
7Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
6. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of previous fiscal years.□Yes No
Increase/decrease compared
202520242023
with last year (%)
Operating revenue (CNY) 2988667522 3277278347 -8.81% 4384764335
Net profit attributed to shareholders of the listed company (CNY) 71291303 305210999 -76.64% 532438907
Net profit attributed to shareholders of the listed company after
39128174131065357-70.15%464073693
deducting non-recurring profits and losses (CNY)
Net cash flows from operating activities (CNY) 355823459 397741067 -10.54% 1173091743
Basic earnings per share (CNY) 0.11 0.45 -75.56% 0.78
Diluted earnings per share (CNY) 0.11 0.45 -75.56% 0.78
Weighted average for earning rate of net assets 0.68% 2.83% -2.15% 4.98%
Increase/decrease compared
December 31 2025 December 31 2024 December 31 2023
with last year-end (%)
Total assets (CNY) 12050601981 12520474218 -3.75% 13336267204
Net assets attributed to shareholders of the listed company (CNY) 10347247577 10619208419 -2.56% 10841500988
The lower of the net profits before non-recurring gains and losses and after non-recurring gains and losses in recent three fiscal years is negative
and the audit report in recent one year indicates there is uncertainty in the Company’s sustainable operation ability
□Yes No
The lower of the net profits before non-recurring gains and losses and after non-recurring gains and losses is negative
□Yes No
8Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
7. Differences in accounting data under PRC accounting standards and international accounting standards
(1) Differences for net profit and net assets in the financial report disclosed according to both international accounting standards and
PRC accounting standards
□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 for net profit and net assets in the financial report disclosed according to both foreign accounting standards and PRC
accounting standards
□Applicable Inapplicable
There are no differences for net profit and net assets in the financial report disclosed according to both foreign accounting standards and PRC
accounting standards during the report period.
8. Key financial indicators by quarter
Unit：CNY
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Operating revenue 810921680 659654497 645394211 872697134
Net profit attributed to shareholders of the listed company 159276876 26320266 1917154 -116222993
Net profit attributed to shareholders of the listed company after
15277333319386494-3768045-129263608
deducting non-recurring profits and losses
Net cash flows from operating activities 21194646 218226482 118491215 -2088884
Whether there are significant differences between the above mentioned financial indicators or their sum and the related financial indicators in the
quarterly reports and semi-annual reports disclosed by the Company.□Yes No
9Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
9. Item and amount of non-recurring profit and loss
Applicable □Inapplicable
Unit：CNY
Item 2025 2024 2023 Explanation
Profits and losses on disposal of non-current assets (including the provision for asset
134853413211692623852237
impairment write-off part)
Government grants recorded into the current profits and losses(except for those government
grants that are closely related to the enterprise’s normal operation in line with national policy 35137675 52613910 51523799
provisions and in accordance with certain standard quota or ration continued to enjoy)
Other non-operating revenues and expenditures in addition to the aforementioned items 4751888 1244856 9137420
Less：Income tax effect 4473472 6873074 13643745
Minority shareholders’ equity effect (after taxes) 4601496 4956976 2504497
Total 32163129 174145642 68365214 --
Specific situation of other profit and loss items 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.
10Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
III. Management Discussion and Analysis
1. Main businesses during the report period
The Company need to comply with the disclosure requirements of food and liquor manufacturing
related businesses in Shenzhen Stock Exchange Industry Information Disclosure Guideline No. 3 -
Industry Information Disclosure.
(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 the Company still stands by the previous judgment and 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.The Company’s products were divided into two series: wine and brandy. For wine main brands
included Changyu Noble Dragon AFIP Longyu Long Tailed Cat Golden Icewine Valley
Zenithwirl Vermouth Rena Baron Balboa Donelly Atrio Kilikanoon and IWCC and so on. For
Brandy main brands included Koya Liquan Mminni Pagese Roullet Fransac and so on.
(2) The production licenses of main products obtained by the Company in China
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 Changyu Longyu Estate Approval from
Alcohol 2018.01.25 SC11564010500657
Co. Ltd. government authority
11Yantai Changyu Pioneer Wine Co. Ltd. 2025 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 Changge 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 major 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.Major sales mode
The Company’s main sales mode was the distribution mode and main sales channel was offline
sales that is the Company’s products were distributed to sales terminals through approximately
5000 distributors at home and abroad and ultimately provided to consumers.
Distribution mode
Applicable □Inapplicable
(1) Situation of change in the number of distributors
Number at the Increased number during Number at the
Region
beginning of 2025 this report period end of 2025
Eastern China 2200 90 2290
South China 576 5 581
Central China 397 -16 381
North China 334 -11 323
Northwest China 153 4 157
Southwest China 433 -13 420
Northeast China 288 -8 280
12Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
HongKong MacaoTaiwan 799 -3 796
and overseas
Total 5180 48 5228
(2) The Company and distributors took cash spot settlement and mainly adopted buyout
distribution mode.
20252024
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 2480871532 1103557256 55.52% 2773310799 1173187606 57.70%
Direct sales 507795990 226267745 55.44% 503967548 219414793 56.46%
Total 2988667522 1329825001 55.50% 3277278347 1392602399 57.51%
The ratio of sales in self-owned exclusive shop exceeds 10%
Applicable Inapplicable
Sales of online direct selling
Applicable □Inapplicable
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
The amount of the main
Procurement mode Procurement content
procurement content
Price determined by quality comparison with standard price items Raw materials such as grapes/ bulk wine 684088844
Tender/Price determined by quality comparison with standard price items Packaging materials 385800469
Tender/Price determined by quality comparison with standard price items Brewing materials 20667145
Tender/Price determined by quality comparison with standard price items Vineyard supplies 2689539
Contract Fuel and power 38583287
Price determined by quality comparison with standard price items Other wines and derivatives 12804041
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%
13Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Applicable Inapplicable
Major production mode
The production mode of the Company is self-produce.Manufacturing consignment
Applicable Inapplicable
Major components of operating costs
Please refer to ‘4. Analysis in main business’ in this chapter.Yield and inventory
Please refer to ‘4. Analysis in main business’ in this chapter.
2. Situation of industry in which the Company operates during the report period
In 2025 the domestic alcohol consumption market continued to slump and the wine industry in
which the Company operates faced unprecedented severe challenges. Facing the difficult
development environment the Company’s management team proactively adopted a series of
measures to strive for a breakthrough adhered to the right path while innovating better served users
and met market demands and carried out many positive explorations and practices. These efforts
have laid a solid foundation for the Company to emerge from difficulties and achieve sustained and
rapid development in the future further consolidating its leading position in the industry. The
annual operating revenue reached CNY2988.67million a year-on-year decrease of 8.81%; the net
profit attributable to shareholders of the parent company was CNY71.29million a decrease of
76.64% compared with the previous year.
3. 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
14Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
mastered advanced winemaking technology and production processes and had strong product
innovation capacity and perfect quality control system.Fourthly the Company is in possession of a lot of grape-growing bases that are compatible with its
development requirements. The Company has developed a great deal of vineyards in the most
suitable areas for wine grape growing such as Shandong Ningxia and Xinjiang and its subsidiary
overseas enterprises also own matching grape bases in local area making the overall scale and
structure generally meet the Company’s needs for future development.Fifthly products in high medium and low-grade as well as varieties and categories are all complete.Over 100 varieties of series products such as wine brandy and sparkling wine covers various grades
including high medium and low-grade which can meet different 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.
4. Analysis in main business
(1) Summarization
Increase or decrease
Description during this period over Cause of significant changes
last year
Operating revenue -8.81%Mainly due to the decrease in sales volume
Operating cost -4.51%Mainly due to the decrease in sales volume
15Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Mainly due to the decreased marketing expense resulting
Sales expense -6.58%
from decreased market investment
Management expense -4.18%Mainly due to the decrease in employee compensation
Mainly due to the increase in the cost of testing and
R&D expense 9.75%consumable materials resulting from the increased
Company’s R&D efforts
Mainly due to the increase in exchange gains and the
Financial expense -219.56%
reduction in external loans
Net amount of cash flow generated Mainly due to the decrease in operating income during the
-10.54%
in operating activities year
Mainly due to the increase in the net cash received from the
Net amount of cash flow generated
38.22%disposal of fixed assets intangible assets and other
in investment activities
long-term assets
Net amount of cash flow generated Mainly due to the decrease in cash used for debt repayment
46.32%
in financing activities and the reduction in dividend distribution
Review and summary of the process of the Company’s early-disclosed development strategy and
business plan during the report period
During the report period the Company continued to adhere to the tenet of "Survive Consolidate the
Foundation Seek Breakthroughs". In response to the increasingly difficult and complex market
environment the Company boldly reformed and innovated continuously adopted and tested various
market strategies and achieved certain positive results. However it still failed to reverse the
downward trend of the market and failed to achieve the operating objectives set at the beginning of
the year. The annual operating revenue reached CNY2988.67million a year-on-year decrease of
8.81%; the net profit attributable to shareholders of the parent company was CNY71.29million a
decrease of 76.64% compared with the previous year. In 2025 the Company mainly carried out the
following work:
First all business divisions pooled their efforts to tackle challenges and pursued innovation for
change. The Brandy Business Division further clarified the development strategy for brandy putforward the promotional slogan of “Breaking Cognac Standards Chinese Chateau Brandy -- NoAdded Liquid Sugar No Added Oak Extract” further innovated the cooperation model and
strengthened its confidence in development; it steadfastly adhered to regular practices such as
tasting events and chateau experiences and deeply cultivated the existing market; it targeted young
consumer groups intensified channel innovation and achieved cross-circle growth; it joined hands
with Half And Half to lay out the chain bar channel taking solid steps in deepening brand influence
and embracing young groups. The Tourism Business Division took service experience upgrading asthe core and focused on improving service quality; it actively implemented the “go global andbring in” strategy strengthened the awareness of empowering the brand not only fully completing
the main business indicators assigned by the Company but also enhancing the influence of the
Changyu brand. The Online Business Division strengthened online marketing and promotion built
16Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
a three-dimensional short-video matrix in content constructed an efficient closed-loop from brand
exposure to sales conversion and gradually made its user structure younger; in 2025 the Company
launched the Longtail Cat white wine targeting young consumer groups which was widely favored
by young consumers for its sweet and smooth taste and cute design with cumulative sales reaching
CNY50million. The Chateau Wine Business Division focused on the annihilation battle marketsand persisted in circle marketing; centering on core positioning such as “King of Global WineKings” “State Banquet Wine” and “Red Brewed White” it intensified the brand promotion of
Longyu and AFIP; in 2025 it carried out a total of 1669 tasting events and newly built 7 chateau
culture experience halls and 47 brand halls. The Noble Dragon Business Division restructured the
core product matrix and vigorously promoted the offline development of the Long Tailed Cat brand;
it continued to strengthen banquet promotion systematically sorted out promotional slogans and
market development strategies launched the new product “Cabernet No. 1” and deeply cultivated
the banquet scenario. The Imported Wine Business Division optimized the structure of management
departments effectively improving per capita efficiency; it reached in-depth cooperation with
Wanda Hotel Management Company to strengthen channel expansion; it carried out themed
promotion activities for the Dry White Season in catering terminals.Second the Company took safety as the foundation took quality as the essence and adhered to the
red lines and bottom lines. The Company comprehensively improved employees’ risk prevention
awareness and emergency response capabilities by carrying out safety training hidden hazard
treatment and emergency drill activities; it built a systematic safety culture cultivation system byclarifying safety commitments promoting pre-operation reminders and establishing a post “requiredknowledge and skills” Q&A mechanism; the Company was awarded the title of Advanced Unit by
the Yantai Emergency Management and Work Safety Association. The Company strictly
implemented the “daily control weekly inspection monthly scheduling” mechanism adhered to the
“four strictest” requirements and ensured product quality; it innovatively built a “fingerprintspectrum” technical system for product identification realizing the triple functions of product
stability judgment source traceability and authenticity identification; it successfully completed
grape purchase and processing work with a significant increase in the proportion of high-qualitybulk wine and a remarkable decrease in the average cost per ton of wine; the Company’s “digitalquality management model for the entire industrial chain” was rated as a benchmark enterprise fordigital application in Yantai and the relevant practices were listed as a “model case of intelligenttransformation of traditional manufacturing” by the Municipal Bureau of Industry and Information
Technology; 2 provincial-level scientific research platforms were added; it won 1 first prize of
Shaanxi Provincial Science and Technology Progress Award and 1 second prize of Shandong
Provincial Science and Technology Progress Award; four scientific research achievements such as
“R&D and industrialization of herbal (Polygonatum) wine” were appraised by the China National
Light Industry Council as three “international leading” and one “international advanced”; it
participated in the formulation of 3 group standards; it obtained 1 national invention patent and
applied for 3 utility model patents; it participated in influential domestic and foreign wine and
spirits competitions winning 52 awards including grand gold medals and gold medals.
17Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Third the Company deepened the effectiveness of financial management and strengthened the
responsibilities of audit supervision. The Company strengthened capital management saved more
than CNY1million in financing costs and increased interest income by more than CNY7million
through structured deposits agreement deposits and other methods; conducted fiscal and tax
planning from multiple perspectives to save fiscal and tax expenditures; strengthened the financial
supervision of overseas enterprises actively explored more stable cross-border financing solutions
and ensured the healthy operation of overseas enterprises; completed the asset disposal of Roullet
Fransac Company further revitalized assets and optimized resource allocation. The Company
strengthened audit supervision audited the authenticity of profits the integrity and effectiveness of
assets of the production and sales systems in 2024; completed the outgoing audit of sales system
managers and special audits of non-performing assets economic liability investigation and
advertising expenses of business divisions; investigated the relevant responsible persons who
caused economic losses in 2024; completed the audit of technical transformation projects.Fourth the Company continued to implement B-share repurchases to maintain the Company’s stock
value. Following the first B-share repurchase in 2024 the Company implemented and canceled
another B-share repurchase in 2025 conveying the Company’s firm confidence in the long-term
value of Changyu B-shares to the secondary market and laying a solid foundation for the
Company’s capital market image building and value enhancement.
(2) Revenue and cost
* Composition of operating revenue
Unit: CNY
2025 2024 Year-on-year
Proportion in Proportion in increase or
Amount Amount
operating revenue operating revenue decrease (%)
Total operating revenue 2988667522 100% 3277278347 100% -8.81%
Sector-classified
Sector of liquor and
2988667522100%3277278347100%-8.81%
alcoholic beverage
Product-classified
Wine 2139677741 71.59% 2438454334 74.40% -12.25%
Brandy 759016796 25.40% 740131229 22.58% 2.55%
Tourism 70632931 2.36% 80672837 2.46% -12.45%
Others 19340054 0.65% 18019947 0.55% 7.33%
Area-classified
Domestic 2370215804 79.31% 2685914511 81.96% -11.75%
Overseas 618451718 20.69% 591363836 18.04% 4.58%
Sales model- classified
Distribution 2480871532 83.01% 2773310799 84.62% -10.54%
Direct sales 507795990 16.99% 503967548 15.38% 0.76%
18Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
* The industry product region and sales model that account for over 10% of the Company’s
operating revenue or operating profit
Applicable □Inapplicable
Unit: CNY
Year-on-year Year-on-year Year-on-year
Operating Gross increase or increase or increase or
Operating cost
revenue margin decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross profit rate
Industry-classified
Industry of liquor
and alcoholic 2988667522 1329825001 55.50% -8.81% -4.51% -3.48%
beverage
Product-classified
Wine 2139677741 958891406 55.19% -12.25% -7.86% -3.72%
Brandy 759016796 329959151 56.53% 2.55% 6.80% -2.97%
Tourism 70632931 30901139 56.25% -12.45% -8.28% -3.42%
Others 19340054 10073305 47.91% 7.33% 8.86% -1.51%
Area-classified
Domestic 2370215804 937653583 60.44% -11.75% -9.14% -1.85%
Overseas 618451718 392171418 36.59% 4.58% 8.75% -2.43%
Sales model- classified
Distribution 2480871532 1103557256 55.52% -10.54% -5.94% -2.18%
Direct sales 507795990 226267745 55.44% 0.76% 3.12% -1.02%
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 year.□Applicable Inapplicable
* Whether the Company’s sales revenue for material object is more than labor service
revenue
Yes □No
Sector Item Unit 2025 2024 Year-on-year increase or decrease (%)
Alcohol and Sales volume Ton 74135 78102 -5.08%
alcoholic beverage Yield Ton 72047 78147 -7.81%
industry Inventory Ton 24814 26687 -7.02%
Sales volume Ton 52320 57652 -9.25%
Wine Yield Ton 51999 56120 -7.34%
Inventory Ton 16105 16370 -1.62%
Brandy Sales volume Ton 21816 20450 6.68%
19Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yield Ton 20048 22027 -8.99%
Inventory Ton 8710 10317 -15.58%
Explanation on the causes of over 30% year-on-year changes of the related comparison data
Applicable Inapplicable
None
* The fulfillment of significant sales contract and purchase contract signed by the Company
up to the report period
□Applicable Inapplicable
* Composition of operating costs
Product categories
Unit: CNY
2025 2024 Year-on-year
Product
Item Proportion in the Proportion in the increase or
category Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 478056830 49.86% 519678925 49.93% -8.01%
Packing material 239437985 24.97% 262997298 25.25% -8.96%
Wages 35935328 3.75% 38055803 3.66% -5.57%
Wine
Manufacturing cost 133909718 13.97% 139210471 13.34% -3.81%
Contract performance
715515457.46%807733767.82%-11.42%
costs
Blending liquor 155445245 47.11% 139052184 45.09% 11.79%
Packing material 85679430 25.97% 72469801 23.54% 18.23%
Wages 9497025 2.88% 8826222 2.87% 7.60%
Brandy
Manufacturing cost 53891266 16.33% 59918123 19.43% -10.06%
Contract performance
254461857.71%286745399.08%-11.26%
costs
Explanation
No
* Whether there are changes of consolidation scope during the report period
Yes No
During the reporting period the Company disposed of its equity in Etablissements Roullet Fransac
and as a result that company was no longer included in the Company’s consolidation scope.* Major changes or adjustments of the Company’s businesses products or service during
the report period
□Applicable Inapplicable
20Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
* Information of major sales customers and major suppliers
The Company’s major sales customers
The total sales amount of the top five customers（CNY） 194164276
The proportion that total sales amount of the top five customers accounting for the annual total
6.50%
sales amount（%）
The proportion that sales amount of the related party in the total sales amount of the top five
0%
customers accounting for the annual total sales amount（%）
Information of the Company’s 5 biggest sales customers
No. Customer name Sales amount（CNY） Proportion in total sales for the year（%）
1 Rank 1st 95095754 3.18%
2 Rank 2nd 32780119 1.10%
3 Rank 3rd 22875348 0.77%
4 Rank 4th 22666292 0.76%
5 Rank 5th 20746763 0.69%
Total -- 194164276 6.50%
Other situation explanations of major customers
□Applicable Inapplicable
Information on the Company’s main suppliers
The total purchase amount of the top 5 suppliers (CNY) 398284717
The proportion of the total purchase amount of the top 5 suppliers in the annual purchase
34.80%
amount
The proportion of the related party purchase amount in the top 5 supplier purchase amount
4.85%
in annual purchase amount
Information on the Company’s top 5 biggest suppliers
No. Supplier name Purchase amount(CNY) Proportion in total purchase for the year（%）
1 Rank 1st 117519591 10.27%
2 Rank 2nd 87833512 7.67%
3 Rank 3rd 75451144 6.59%
4 Rank 4th 61998992 5.42%
5 Rank 5th 55481477 4.85%
Total -- 398284716 34.80%
Other situation explanations of main suppliers
□Applicable Inapplicable
21Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
During the reporting period the revenue from the Company’s trading business accounted for more
than 10% of the total revenue
□Applicable Inapplicable
(3) Expense
Unit: CNY
Year-on-year increase
2025 2024 Explanation of significant changes
or decrease (%)
Mainly due to the decrease in marketing
Sales expense 946328561 1012980420 -6.58% expense resulting from decreased market
investment
Management Mainly due to the decrease in employee
300804447313911881-4.18%
expense compensation
Financial Mainly due to the increase in exchange
-1534694612836073-219.56%
expense gains.Mainly due to the increased in the cost of
Research and
testing and consumable materials resulting
Development 21442819 19538243 9.75%
from the increased Company’s increased
expense
R&D efforts.The Company needs to comply with the disclosure requirements of the food and wine
manufacturing industry as set out in the Guidance on Self-Regulation of Listed Companies of
Shenzhen Stock Exchange No.3- Industry Information Disclosure.
(4) Research and development investment
Applicable □Inapplicable
Name of main
research and Project Project Predicted influence in the Company’s
Target
development purpose progress future development
project
—————
The Company’s research and development personnel
2025 2024 Percentage of changes (%)
Number of R&D personnel (person) 145 139 4.32%
The proportion of the number of R&D personnel 6.87% 6.44% 0.43%
Educational structure of R&D personnel
Bachelor 51 48 6.25%
Postgraduate 28 25 12%
Doctor 1 1 0%
Below Bachelor 65 65 0%
Age structure of R&D personnel
22Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Under 30-year-old 40 34 17.65%
30-to 40-year-old 41 41 0%
Above 40-year-old 64 64 0%
The investment of the Company’s R&D
2025 2024 Percentage of changes (%)
R&D investment amount (CNY) 21442819 19538243 9.75%
R&D investment as a percentage of operating income 0.72% 0.60% 0.12%
Amount of R&D investment capitalized (CNY) 0 0 0%
Capitalized R&D investment as a percentage of R&D
0%0%0%
investment
Reasons and effects of major changes in the composition of the company’s R&D personnel
□Applicable Inapplicable
Reasons for the significant change in the proportion of total R&D investment in operating income
compared with the previous year
□Applicable Inapplicable
Reasons for the substantial changes in the capitalization rate of R&D investment and its rationality
explanation
□Applicable Inapplicable
(5) Cash flow
Unit: CNY
Year-on-year increase
Item 2025 2024
or decrease (%)
Subtotal of cash inflow in operating activities 2934731113 3673427471 -20.11%
Subtotal of cash outflow in operating activities 2578907654 3275686404 -21.27%
Net amount of cash flow generated in operating activities 355823459 397741067 -10.54%
Subtotal of cash inflow in investment activities 267530363 511439930 -47.69%
Subtotal of cash outflow in investment activities 91671276 384211357 -76.14%
Net amount of cash flow generated in investment activities 175859087 127228573 38.22%
Subtotal of cash inflow in financing activities 527318069 507959260 3.81%
Subtotal of cash outflow in financing activities 938993831 1274904376 -26.35%
Net amount of cash flow generated in financing activities -411675762 -766945116 46.32%
Net increase of cash and cash equivalents 121400538 -245428201 Inapplicable
Explanation of main influence factors contributing to great changes in related data on year-on-year
basis
Applicable Inapplicable
23Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Unit: CNY
Year-on-year increase
Item 2025 2024 Explanation
or decrease (%)
Mainly due to the decrease in cash received from the sale of goods
Subtotal of cash inflow in operating activities 2934731113 3673427472 -20.11%
and provision of services
Mainly due to the decrease in cash used for purchasing goods and
Subtotal of cash outflow in operating activities 2578907654 3275686405 -21.27%
paying for services
Subtotal of cash inflow in investment Mainly due to the decrease in the cash received from recovering
267530363511439930-47.69%
activities investments
Subtotal of cash outflow in investment
91671276 384211357 -76.14% Mainly due to the decrease in cash paid for investment
activities
Net amount of cash flow generated in Mainly due to the increase in the net cash received from the disposal
17585908712722857338.22%
investment activities of fixed assets intangible assets and other long-term assets
Mainly due to the decrease in cash used for debt repayment and the
Subtotal of cash outflow in financing activities 938993831 1274904376 -26.35%
reduction in dividend distribution
Net amount of cash flow generated in Mainly due to the decrease in cash used for debt repayment and the
-411675762-76694511646.32%
financing activities reduction in dividend distribution
Mainly due to the increase in the net cash flow from financing
Net increase of cash and cash equivalents 121400538 -245428201 Inapplicable
activities
Explanation on the causes of major differences between the net cash flow generated by the Company’s operating activities and net profit of this
year during the report period.Applicable Inapplicable
During the reporting period the major differences between the net cash flow generated from the Company’s operating activities and the net
profit of this year was mainly due to the depreciation of fixed assets.
24Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
5. Analysis to non-main business
□Applicable Inapplicable
6. Assets and liabilities
(1) Significant changes of assets composition
Unit: CNY
At the end of 2025 At the beginning of 2025
Proportion increase or Explanation on
Proportion in the total assets Proportion in the total assets
Amount Amount decrease (%) significant changes
(%)(%)
Monetary funds 1890611804 15.69% 1797848130 14.36% 1.33% No significant changes
Account Receivables 264932724 2.20% 270829601 2.16% 0.04% No significant changes
Contract assets 0% 0% 0% No significant changes
Inventory 2836077209 23.53% 2904070556 23.19% 0.34% No significant changes
Investment real estate 19900228 0.17% 21960451 0.18% -0.01% No significant changes
Long-term equity investments 26656197 0.22% 34864748 0.28% -0.06% No significant changes
Fixed assets 5308778632 44.05% 5551671795 44.34% -0.29% No significant changes
Construction in progress 4313088 0.04% 10177372 0.08% -0.04% No significant changes
Right-of-use asset 55252509 0.46% 71761262 0.57% -0.11% No significant changes
Short-term borrowings 240674788 2% 216140346 1.73% 0.27% No significant changes
Contract liability 135067463 1.12% 128090353 1.02% 0.10% No significant changes
Long-term borrowings 52374840 0.43% 50637203 0.40% 0.03% No significant changes
Lease liability 19437830 0.16% 27542829 0.22% -0.06% No significant changes
Foreign asset has a high proportion
Applicable □Inapplicable
25Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Unit: CNY
Control measures for Proportion of Whether there
Formation Operation Earning
Details of assets Assets scale Location safeguarding of overseas assets in the are significant
reasons mode condition
asset security Company’s net assets impairment risks
Hacienda Y The Company participates in
Vinedos Acquisition of Independent making important decisions through
658542233 Spain 21140947 5.46% No
Marques Del equity operation board of directors and appoints CFO
Atrio. SL on financial management.Indomita Wine The Company participates in
Establishment Independent
Company Chile 545731778 Chile making important decisions through 7780198 4.53% No
of joint venture operation
S.p.A. board of directors.The Company participates in
Kilikanoon Acquisition of Independent
143137440 Australia making important decisions through -3431981 1.19% No
Estate Pty. Ltd. equity operation
board of directors.Francs Champs Sole The Company participates in
Independent
Participations proprietorship 199491321 France making important decisions through -12746896 1.66% No
operation
SAS establishment directly appointing senior executive.Other
None
explanation
(2) Assets and liabilities measured at fair value
□Applicable Inapplicable
(3) Limitations of assets rights up to the end of the report period
Please refer to the ‘52. Assets with restrictive ownership title or right of use’ of the ‘Notes to the financial statements’ in this report’s financial report.
26Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
7. Investment condition analysis
(1) Overall situation
Applicable □Inapplicable
Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation
30439700277386009.74%
(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
Whether Investment Accumulated Accumulated Reasons for
Involved
belongs to amount actual investment realized unreached Disclosu
Investmen sectors of Capital Project Estimated Disclosure index (if
Project name fixed during the amount up to the earnings up to planning schedule re date
t mode investment source progress earnings have)
assets report end of the report the end of the and estimated (if have)
projects
investment period period report period earnings
Yantai Changyu Liquor Please refer to
International Wine Self-const and Owned 2017.04. Resolution
Yes 0 1705784100 100% 0 0 —
City Blending and ructed alcoholic fund 22 Announcement of
Cooling Center beverage Seventh Session Board
27Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
sector of Directors 4th Meeting
Yantai Changyu
Self-const Owned 2017.04. Resolution
International Wine Yes 0 1136520000 100% 0 0 —
ructed fund 22 Announcement of
City Bottling Center
Seventh Session Board
th
Oak Barrel Self-const Owned 2021.04. of Directors 8 Meeting
Yes 10506700 237520900 97% 0 0 —
Procurement Project ructed fund 28 Seventh Session Board
th
Infrastructure of Directors 10
Improvement Self-const Owned 2022.04. Meeting Resolution
Yes 14200000 14200000 80% 0 0 —
Project of Changyu ructed fund 27 Announcement of Eighth
Industrial Park Session Board of
Directors 4th Meeting
Resolution
Announcement of Eighth
Session Board of
Directors 11th Meeting
Resolution
Yantai Local Announcement of Ninth
Companies and Session Board of
Self-const Owned 2025.04.Chateaux Placed Yes 5733000 5733000 80% 0 0 — Directors 5th Meeting
ructed fund 18
Other Than Yantai Resolution
Project Announcement of Ninth
Session Board of
Directors 9th Meeting
and Resolution
Announcement of Ninth
Session Board of
Directors 11th Meeting
28Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
disclosed on China
Securities Journal
Securities Times and
CNINFO
(http://www.cninfo.com.cn/)
Total -- -- -- 30439700 3099758000 -- -- 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.
8. Sale of significant assets and equities
(1) Sale of significant assets
Applicable Inapplicable
There are no sale of significant assets for the Company during the report period.
(2)Sale of significant equities
Applicable Inapplicable
29Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The equity Whether
The proportion Whether
contributed to the The the
of the net profit Equity Whethe all the
Transact net profit of the associated equity
The impact of the sale on contributed by sale r it is a claims and
Counter Sale ion price listed company relationshi involved Disclos Disclosur
Sold equity the company equity sale to pricing related debts
party date (CNY’0 from the beginning p with the have been ure date e index
the total net principl transact involved
000) of the current counterpar fully
profit of the es ion have been
period to the date of ty transferre
listed company transferred
sale (CNY’0000) d
Through continuous
efforts the Company’s
100% equity Please
domestic brand of brandy
interest in refer to
has made significant
ETABLISSEME The
progress. The current
NTS ROULLET Announce
product quality is fully
FRANSAC held ment
comparable to that of
by Francs Regardin
French cognac. In order to
Champs g on
focus more on the
Participations Transferr
development of the
ELIOR SAS a Negotiat ing
2025.06 domestic high-end brandy 2025.06
GROUP subsidiary of the 3953 -19.73 -0.38% ed No No Yes Yes Equity.11 brand Koya the Company .10
SA Company; The pricing and
has decided to transfer its
real estate held Related
equity in Roullet Fransac.by the Company Real
It is also conducive to the
related to the Estate
Company accelerating the
production and Assets of
progress of asset disposal
operation of the Etablisse
optimizing the asset
ETABLISSEME ments
structure better
NTS ROULLET Roullet
recovering funds and
FRANSAC. Fransac
improving operating
efficiency.
9. 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
30Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Unit: CNY
Main Registered Operating Operating
Company name Company type Total assets Net assets Net profit
business capital revenue profit
Yantai Changyu Pioneer Wine Sales Co. Ltd. Subsidiary Sales CNY8million 357491082 40035494 1902209718 73714987 62646672
Yantai Changyu Wine Sales Co. Ltd. Subsidiary Sales CNY5million 180618334 166094289 766987544 101461661 76142940
Changyu Trading Co. Ltd. in Development Zone of Yantai Subsidiary Sales CNY5million 84381035 15239443 102950328 30236437 22648836
Laizhou Changyu Wine Sales Co. Ltd. Subsidiary Sales CNY1million 98190941 1087342 249115189 25180579 18903105
Acquisition and disposal of subsidiaries during the report period
Applicable Inapplicable
Company Name The methods of acquiring and disposing ofsubsidiaries during the reporting period The impact on the overall production and operation as well as the performance
Through continuous efforts the Company’s domestic brand of brandy has made
The Francs Champs Participations SAS a significant progress. The current product quality is fully comparable to that of
ETABLISSEMENTS subsidiary of the Company has transferred its French cognac. In order to focus more on the development of the domestic high-end
ROULLET FRANSAC 100% equity in ETABLISSEMENTS ROULLET brandy brand Koya the Company has decided to transfer its equity in RoulletFRANSAC for a price of EUR2.6million to ELIOR Fransac. It is also conducive to the Company accelerating the progress of asset
GROUP SA. disposal optimizing the asset structure better recovering funds and improving
operating efficiency.Explanation on main holding and joint stock companies
31Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
10. Situation of the structured subjects controlled by the Company
□Applicable Inapplicable
11. Expectation for the Company’s future development
On the basis of our limited experience and professional skills the Company makes the following
judgments on the wine industry and future development:
(1) The sector competition pattern and development trend
In 2026 the Company expects that the competition in the wine market will remain very fierce.Signs of recovery in the wine industry have not yet emerged and the challenges faced by the
Company will become even more complex and severe. However there are also many favorable
factors for the development of the wine industry: The local governments of each wine-producing
region are actively responding to support the development of the wine industry; There are many
high-net-worth individuals in China bringing a large base of high-end demand and the atmosphere
of wine consumption and the perception of the fact that wine is healthy are gradually forming;
Young and trendy drinkers are on the rise beginning to influence the future development trend of
wine consumption; With the rise of the national tide the consumption of domestic goods has
gradually become a fashion; In the long run the huge development potential of domestic wines has
not changed and the industry will continue to focus on core brands. In such a case of long-term
coexistence of opportunities and challenges as always the Company believes that those enterprises
that possess strong brand influence and marketing ability catch the opportunities actively take
adjustments make full use of newly emerging and traditional sales channels make efforts to guide
and cultivate wine consuming groups timely meet the needs of consumers and provide better price
performance of the product that the Company will have the opportunity to win in the competition.
(2) The Company’s development strategyThe Company will adhere to the development strategy of “Focus on middle-and-high level Focuson high quality Focus on large single product” and the marketing philosophy of “obtaining growthfrom the terminal and nurturing consumers” follow the work guideline of “Staying committed tothe goals without wavering remaining steadfast in the development direction maintaining rigorousmanagement without slackening and persisting in innovation without pause” give full play to own
advantages and strive to achieve various operating targets.
(3) Management plan for the new year
In 2026 the Company will try its best to realize operating revenue of not less than CNY3billion
and control the main operating costs and three period expenses below CNY2.7billion.
(4) Measures to be adopted by the Company
In the new year the Company will systematically carry out various tasks by focusing on the fouraspects of “firm confident and never give up push forward the reform without slackening adhereto the right path while innovating without stopping and hold the bottom line without wavering”.
32Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
First the Company will firm confident and never give up. Although the current wine industry is in
a period of deep adjustment challenges and opportunity coexist and “danger” and “chance” are
intertwined. The Company will deeply identify the “danger” and “chance” seek “chance” in
“danger” and seize “chance” to create new opportunities. Currently wine consumption shows a
trend of low-alcohol younger and healthier consumption. As a leading enterprise in the industry
the Company has a profound accumulation and inherent advantages in brand heritage product
quality and market influence. The Company’s active exploration and phased achievements in the
above-mentioned directions last year fully confirm the feasibility of this development approach.The Company’s exploratory activities and phased achievements carried out last year fully
confirmed the feasibility of this development strategy. In 2026 the Company will continue to
promote the high-end talent introduction plan select talents in practice attract talents in society
build a classified and stratified reserve cadre pool and build a middle and senior talent echelon so
that the team always maintains an energetic combat effectiveness. The Company will permeate the
“growth awareness” into every business link implement it in the job responsibilities and work
actions of every employee and make the pursuit of self-transcendence and excellence an integral
part of the corporate culture.Second the Company will push forward the reform without slackening. The Company will steadily
advance the reform work covering the entire production management and sales chains. At the
production end it will further optimize the existing production system and reposition the
production functions of each secondary unit; gradually outsource non-core and specialized
positions such as power and fire protection to qualified third-party companies to enhance
operational efficiency; on the basis of adhering to order-driven operation reducing the number of
internal wine varieties and optimizing packaging design it will enhance flexible production
capacity fully unleash production capacity advantages and further reduce production costs. At the
management end it will further improve the system optimize the operation process and implement
flat management to make internal collaboration smoother and execution more efficient; it will
strictly control various expenses and the entire company will pull together to live a “tight” and
“difficult” life. At the sales end it will systematically review the entire sales system establish a
sales system that is more suitable for emerging from the trough better adapting to the current
market environment matching market demands and providing consumers with more valuable
services. It will strive to transform the pressure brought by the external environment into thedriving force for internal optimization and create an enterprise with “high production efficiencyexcellent management process strong innovation ability and fast market response”.Third the Company will adhere to the right path while innovating without stopping. The Company
will continue to adhere to the right path while innovating. The existing market will be revitalized
with the concept of “old trees bearing new branches” while the emerging market will be broken
through with the innovative thinking of “bold exploration and experimentation”. The wine series
will focus on expanding the “white wine” market while maintaining the “red wine” market
securing the basic market share of red wine and expanding its market “width”. At the same time itwill vigorously attack the white wine market to cultivate new growth points enabling the “Longtailed cat” brand to gradually dominate the low-end white wine brands. The brandy series will
concentrate resources on core cities and key regions striving to break through and providing
“fundamental” guarantees for the growth of the brandy business. Additionally the Company will
33Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
continuously explore new product categories such as fruit wine non-alcohol wine functional wine
and flavored brandy. It will boldly innovate in terms of internal wine quality packaging design and
cooperation models and strive to develop and cultivate new products to seize market leadership
positions and achieve sales scale. In the tourism industry each tourism unit will draw on the
operation experience of museums to do a good job in “going out” and “inviting in” continuously
improving service quality and tourist satisfaction and continuously enhancing the brand influence
of the Company. By integrating the “search for roots in Chinese wine” and “wine city tour” the
influence of Changyu brand will be further enhanced to make greater contributions to the
Company’s performance growth.Fourth the Company will hold the bottom line without wavering. During difficult times the
Company will adhere to its bottom line proceed steadily and prepare for the “winter season” with
a cautious mindset. In terms of management and assessment it will always be profit-oriented and
based on cash flow. The Company will strengthen cost control and improve revenue quality
simultaneously. By optimizing product mix strictly controlling unnecessary expenditures and
promoting centralized production to reduce costs and increase efficiency it will ensure the
achievement of profit targets. The Company will also enhance fund management and tax planning
optimize the debt structure and prevent liquidity risks. It will resolutely not cross the two red linesof production safety and quality safety deeply practicing the safety concept of “treating nothing assomething treating small matters as major matters and treating others’ matters as our own”.Earnestly safeguard the quality of products which is the foundation of the enterprise; strengthen
financial supervision of overseas enterprises continuously optimize debt structure and equity
structure; impose audit supervision and continue to increase the intensity of flight audits to ensure
the Company’s stable and long-term development.
(5) Potential risks
* 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.* 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.* Risk in product transport
34Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
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.* 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.* 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.* 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..
12. Activity registration form for receptions of research communication visit and other
activities during the report period
Applicable □Inapplicable
Type of Main discussed
Reception Reception Basic situation
Reception place reception Reception object contents and
time pattern index of reception
object provided data
The recent The Record of
Investor Relations Network Institutions production and Investor-relations
2025.05.15 Interactive Platform platform online individuals All investors operation Activity disclosed
（https://ir.p5w.net) communication and others situation of the on Shenzhen StockCompany Exchange
All investors The recent The Record of
Institutions attending the production and Investor-relations
2025.05.23 Field research Field research individuals on-site meeting of operation Activity disclosed
and others the Shareholders’ situation of the on Shenzhen Stock
Meeting Company Exchange
13. Market value management system and valuation enhancement plan formulation and
implementation
Whether the Company has established a market value management system
35Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yes No
Whether the Company has disclosed a valuation enhancement plan
Yes No
From February 10 2025 to February 10 2026 the closing price of Changyu B Shares on each
trading day was consistently lower than the net asset per share attributable to the Company’s
common shareholders as audited in the most recent accounting year. On February 12 2026 the
Company disclosed a Valuation Enhancement Plan which focuses on aspects such as business
improvement medium and long-term incentive mechanism cash dividends investor relations
management information disclosure and share repurchase to enhance the investment value of the
Company’s B Share and the shareholder return capacity promote the reasonable reflection of the
Company’s investment value based on its quality enhance investor confidence safeguard the
interests of all shareholders and promote the high-quality development of the Company.
14. 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
36Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
IV. Corporate Governance Environmental and Social Responsibility
1. Current Corporate Governance Situation of the Company
(1) About shareholders and shareholders’ meeting
The Company has set up the Deliberation Rules of Shareholders’ Meeting and convened the
shareholders’ meetings in strict accordance with requirements of standard opinions of shareholders’
meeting made the great effort to provide convenient conditions for more shareholders to
participate the shareholders’ meeting and ensured all shareholders to enjoy same equity and well
exercised their rights. The Company drew great attention to the communication and exchange with
shareholders actively responded the shareholders’ inquiry and questions and widely listened to the
suggestions and comments from shareholders.
(2) About the Company and holding shareholder
The Company has independent business and self-management capacity which is independent from
the controlling shareholders in business staffs assets institutions and finance. The Board of
Directors Board of Supervisors management teams and also internal institutions are able to
operate independently in the Company. The controlling shareholders of the Company could
regulate their behaviors without directly or indirectly interfering in the Company’s decision-making
and business activities beyond the shareholder’s meeting; meanwhile there is no case of
encroaching on the Company’s assets and damaging the interest of the Company and minority
shareholders.
(3) About the director and board of directors
The Company strictly appoints all directors in light of Corporation Act and Articles of Associations.The qualifications of all directors are in line with the requirements of laws and regulations. In
accordance with the requirements of Corporate Governance Guidelines the Company has carried
out the cumulative voting system in the director selection. At present the Company has five
independent directors accounting for above one third of all directors and the number and personnel
composition of board of directors was basically in accord with requirements of regulations as well
as Articles of Associations. All directors of the Company were able to carry out work in accordance
with the Rules of Board of Directors’ Procedure and Working Rules for Independent Directors
punctually attended the board of directors’ and shareholders’ meetings actively took part in
relevant knowledge training were familiar with the laws and regulations concerned had a deep
knowledge and long experience of practitioners and performed their duties according to the law
and regulations. The Board of Directors convened the meetings complies with relevant laws and
regulations.
(4) About performance evaluation and incentive system
The appointment of managers was open and transparent and accorded with laws and regulations.The Company has established and gradually improved the performance evaluation standard and
formed efficient incentive system so as to ensure the salary of staff to be linked with work
performance.
37Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(5) About interested parties
The Company could fully respect and safeguard the legal rights of the party with relevant benefit
cooperate actively with the interested parties jointly drive the Company to develop continually and
stably pay great attention to the issues such as local environmental protection and public utilities
etc. and fully assume the due social responsibility.
(6) About the information disclosure and transparency
The Company has appointed the board secretary to be responsible as the head of investor relation
management including information disclosure investor relations management and reception of
shareholders’ visit and consultation. The Company has also assigned China Securities Newspaper
Securities Times Honkong Commercial Daily and web site http://www.cninfo.com.cn/ to disclose
information punctually accurately and truly disclosed any information in the light of requirement
of relevant laws and rules and also ensured all shareholders to have same opportunity to acquire
any information.In order to further perfect the Company’s governance system during the report period the
Company formulated Opinions on Strengthening the Management of Food Safety at Production
Sites and Provisions on Implementing the Supervision and Management of Food Safety Main Body
Responsibility revised and improved several rules and regulations such as Measures for the
Administration of Labor Contracts.Whether or not there is significant variance between the Company’s actual situation of corporate
governance and laws administrative regulations and the regulations about listed company
governance issued by China Securities Regulatory Commission.□Yes No
There is no significant variance between the Company’s actual situation of corporate governance
and laws administrative regulations and the regulations about listed company governance issued by
China Securities Regulatory Commission.
2. Relative to the controlling shareholder and actual controller independence of the Company
on ensuring the company’s assets personnelfinance organization business etc.
(1) Personnel Arrangement
The Company’s general manager deputy general managers and other senior officers all of whom
were paid by the Company and did not hold any concurrent administrative ranks in the controlling
units. The Company was entirely independent in personnel arrangement conclusion and adjustment
of labor contracts thanks to its sound and independent system for labor personal and salary
management.
(2) Assets
Tangible assets and Intangible assets including trademark industrial property right and non-patent
technologies were all clearly divided between the Company and the controlling shareholders and
all legal formalities were completed. As an independent legal entity the Company operates
independently in accordance with the law and does not provide any form of guarantee with its
assets for shareholders’ or individuals’ liabilities or other legal or natural persons. Due to the
historical issues the ownership of trademarks such as “张裕 ” (Changyu) that the Company is
38Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
permitted to use that are still remained with the controlling shareholder. Except for a very small
number of trademarks such as “张裕”(Changyu) the Company has ownership rights of the vast
majority of trademarks being used by the Company which ensures the independence and
completeness of the Company’s assets.
(3) Finance
The Company is equipped with independent finance department financial administrator and
financial and accounting staff as well as a complete independent and standardized financial
accounting system. The Company also opened its own bank accounts independent and legally
paying taxes and workers insurance fund. All financial individuals do not hold any concurrent posts
in associated companies and are able to make financial decisions independently. The Company has
its own audit department which is especially responsible for the internal audit work of the
Company.
(4) Independent Institutions
The Company has set up a sound organizational framework in which the Board of Directors and
Board of Supervisors operate independently no superior and subordinate relationship exists
between the functional departments of the controlling shareholder. The Company has its own
independent production & business offices and all functional departments are independent to
exercise their powers and carry out the production and business activities independently.
(5) Operations
The operations of the Company are independent of the controlling shareholders. The Company
owns itself completely independent systems covering research and development financial
accounting labor and human resource quality control raw materials purchase production and sales
has the independent management ability and does not have the problem that entrusts the controlling
shareholders to buy and sell on commission nor exist the horizontal competition with controlling
shareholders.
3. Situation for Horizontal Competition
□Applicable Inapplicable
39Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
4. Situation for Directors and Senior Executives
(1) Basic situation
Shares held at Increased Decreased Other Shares held at
Beginning date Ending date the beginning shares during shares during changes of the end of the Reasons of the increase and decrease
Name Gender Age Post Status
of tenure of tenure of the period the period the period shares held period change of shares held
(share) (share) (share) (share) (share)
Hongjiang Restricted share repurchased by the
M 61 Chairman Incumbent 2002.05.20 2028.05.24 279600 72000 207600
ZHOU Company
Restricted share repurchased by the
Jian SUN M 59 Director Incumbent 2019.05.17 2028.05.24 360000 63000 297000
Company
Restricted share repurchased by the
Jiming LI M 59 Director Incumbent 2019.05.17 2028.05.24 160000 48000 112000
Company
Xunzhang
M 52 Director Outgoing 2024.03.11 2025.05.23 0
LIU
Marco
Giovanni M 52 Director Incumbent 2024.10.01 2028.05.24 0
Ferrari
Jianxun Restricted share repurchased by the
M 59 Director Incumbent 2022.05.27 2028.05.24 160000 48000 112000
JIANG Company
Jinfeng REN M 53 Director Incumbent 2025.05.23 2028.05.24 0
Stefano
M 67 Director Outgoing 2022.05.27 2025.05.23 0
Battioni
Enrico
M 57 Director Outgoing 2019.05.17 2025.05.23 0
Sivieri
Yun
F 58 Director Incumbent 2020.06.19 2028.05.24 0
CHIANG
Claudio
Michele M 55 Director Incumbent 2025.05.23 2028.05.24
d’Agostino
Samara
F 50 Director Incumbent 2025.05.23 2028.05.24 0
Orsatti
40Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Changqing Independent
M 61 Outgoing 2019.05.17 2025.05.23 0
DUAN director
Huirong Independent
F 62 Outgoing 2019.05.17 2025.05.23 0
LIU director
Independent
Qinglin LIU M 62 Outgoing 2019.07.02 2025.05.23 0
director
Independent
Renzhu YU M 47 Incumbent 2020.05.27 2028.05.24 0
director
Zhuquan Independent
M 60 Incumbent 2020.05.27 2028.05.24 0
WANG director
Independent
Yan XU M 63 Incumbent 2025.05.23 2028.05.24 0
director
Jianluan Independent
M 63 Incumbent 2025.05.23 2028.05.24 0
GUO director
Independent
Xin SU F 57 Incumbent 2025.05.23 2028.05.24 0
director
Chairman of
Bin LENG M 63 the Board of Outgoing 2020.05.27 2025.09.16 0
Supervisors
Zhijun LIU M 45 Supervisor Outgoing 2016.05.26 2025.09.16 0
Jinfeng YU F 35 Supervisor Outgoing 2024.05.05 2025.09.16 0
General
Jian SUN M 59 Incumbent 2018.01.10 2028.06.10 0
manager
Deputy
Jiming LI M 59 general Incumbent 2019.05.28 2028.06.10 0
manager
Deputy Reduction of stocks in the secondary
Hua JIANG M 62 general Outgoing 2001.09.14 2025.06.09 170000 48000 48000 74000 market and restricted share
manager repurchased by the Company
Deputy Reduction of stocks in the secondary
Bin PENG M 59 general Incumbent 2018.01.10 2028.06.10 160000 24100 48000 87900 market and restricted share
manager repurchased by the Company
Jianxun Deputy
M 59 Incumbent 2019.05.28 2028.06.10 0
JIANG general
41Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
manager and
Board
secretary
General Restricted share repurchased by the
Jianfu PAN M 50 manager Incumbent 2018.04.19 2028.06.10 70000 30000 40000
assistant Company
General
Qingkun Restricted share repurchased by the
M 53 manager Incumbent 2022.06.09 2028.06.10 75000 30000 45000
KONG
assistant Company
General Restricted share repurchased by the
Shilu LIU M 51 manager Incumbent 2018.04.19 2028.06.10 70000 60000 40000
assistant Company
General
Zhenbo Restricted share repurchased by the
M 49 manager Incumbent 2018.04.19 2026.03.09 75000 30000 45000
XIAO
assistant Company
General
Hongbo Restricted share repurchased by the
M 43 manager Incumbent 2025.06.09 2028.06.10 25182 10793 14389
SUN
assistant Company
General Reduction of stocks in the secondary
Cuimei
F 52 manager Incumbent 2025.06.09 2028.06.10 41090 12327 12327 16436 market and restricted share
GUO
assistant repurchased by the Company
Total -- -- -- -- -- -- 1645872 0 84427 512447 1091325 --
Is there any resignation of directors and senior executives during their term of office during the reporting period
Yes No
Changes of directors and senior executives of the Company
Applicable Inapplicable
42Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Situation for work experience
The professional background main work experiences and present positions of the Company’s
directors and senior executives
* Members of Board of Directors
Mr. Hongjiang Zhou male 61 years old Chinese with doctoral degree senior engineer used to
be the General Manager of Yantai Changyu Pioneer Wine Sales Co. Ltd. the Deputy General
Manager the General Manager and the Deputy Chairman of Yantai Changyu Pioneer Wine Co.Ltd.. He is incumbent as the Chairman of Yantai Changyu Group Co. Ltd. and the board director
and the Chairman of the Company now.Mr. Jian Sun male 59 years old Chinese MBA used to be the Deputy General Manager of the
Company. He is incumbent as the board director and the General Manager of the Company and
with an additional post of the board director of Yantai Changyu Group Co. Ltd..Mr. Jiming Li male 59 years old Chinese with doctoral degree application researcher used to be
the Chief Engineer of the Company. He is incumbent as the board director and the Deputy General
Manager of the Company and with an additional post of the board director of Yantai Changyu
Group Co. Ltd..Mr. Jianxun Jiang male 59 years old Chinese MBA and accountant served as the Financial
Manager of the Company from May 20 2002 to January 10 2018. He now serves as the board
director Deputy General Manager and Board Secretary of the Company.Mr. Jinfeng Ren male 53 years old Chinese bachelor degree; From July 1995 to May 2020 he
successively served as staff of head company directly under the Management Committee of Yantai
Free Trade Zone the project director deputy minister minister member of the Party Leadership
Group and deputy director of Yantai Investment Promotion Bureau member of the Party and
deputy director of Yantai Investment Promotion Center. Since May 2020 he has been served as a
member of the Party Committee and the Deputy General Manager of Yantai Guofeng Investment
Holding Group Co. Ltd. and the board director of Changyu Group Co. Ltd. and the Company.Mr. Marco Giovanni Ferrari male 52 years old Italian laurea degree. He has successively
served as marketing assistant of Bacardi-Martini Italy and Martini & Rossi S.p.A. (Torino Italy)
brand manager of Bacardi-Martini UK (Southampton UK) marketing manager of Bacardi-Martini
Italy (Torino Italy) global marketing manager Bacardi Rum of Bacardi Limited (London UK)
director of strategic development marketing and trade marketing of Branca International (Milano
Italy) global chief marketing officer and regional director North America of Stoli Group (part of
SPI Group S.A.R.L.) (Luxembourg) and CEO and executive board member of Gruppo Montenegro
(Bologna Italy). He currently serves as CEO and executive board member of Illva Saornno Holding
(Saronno Italy) member of the Board of Federvini (Italian Federation of Spirits and Wine
Manufacturers) member of the Board of Governors and vice-chair of British School of Milan and
director of Yantai Changyu Group Co. Ltd. and the Company.Mr. Claudio Michele d’ Agostino male 55 years old Italian bachelor degree; Since September
1996 he has successively served as the lawyer of Pavia e Ansaldo (Shanghai Office) the lawyer of
BeA Law (Shanghai Office) and the lawyer of DLA Piper UK LLP (Shanghai Office). He is
currently the lawyer of DLA Piper Italy (Milan Office).Ms. Samara Orsatti female 50 years old Italian bachelor degree; From January 2001 to June
2023 she has successively served as the cash manager/ risk controller of NESTLè GROUP -
NESTLé FINANZIARIA ITALIA SPA the group international auditor of NESTLé GROUP -
43Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
NESTLè SA the group audit manager of BULGARI SPA the group audit manager of SORIN
GROUP - SORIN SPA the head of financial industrial and commercial controlling of
LIVANOVA GROUP - ELA MEDICAL SAS the head of financial and business controlling of
AMGEN ITALIA SPA the country head dry eye& ocular health and the country chief financial
officer of ALCON ITALIA SPA and the CFO international of ALFASIGMA SPA. Since July 2023
she serves as the head of finance growth markets of ALFASIGMA SPA.Ms. Yun Chiang female 58 years old successively obtained Bachelor of Science degree Magna
Cum Laude from Virginia Tech Virginia EMBA of The Kellogg School of Management at North
Western University USA and EMBA of The Graduate School of Management Hong Kong
University of Science and Technology Hong Kong China. She used to acted as Director at
American International Group (AIG) direct investment team the Managing Partner of Pacific
Alliance Group (PAG). She currently serves as the INED member of Audit Committee and
Nomination Committee and Chairlady of ESG Committee in Las Vegas Sands China the INED
member of Audit Committee and Remunerations Committee and Chairlady of Nomination
Committee and ESG Committee in Goodbaby International Holding Ltd. the INED member of
Audit Committee and Nomination Committee and Chairlady of Remunerations Committee in
Pacific Century Premium Developments Ltd. the CEO and Founding Partner of Prospere Capital
and the board director of the Group Company and the Company.Mr. Renzhu Yu male 47 Chinese doctor of management high-level talents of Jinan used to act
as the Deputy Director of Huanglong National Scenic Area Administration in Aba prefecture of
Sichuan province as a member of the 18th doctoral team of the Central Organization Department
and the Communist Youth League of China and also ever acted as managing director of Shandong
Agricultural Economy Society. Currently he serves as a professor and a master supervisor in
School of Business Administration in Shandong University of Finance and Economics the
managing director of Chinese Marketing Association of Universities and an independent director of
this Company.Mr. Zhuquan Wang male 60 years old Chinese doctor of management (accountancy) national
high-level talent first batch of national accounting academic leading personals of the Ministry of
Finance the accountant master of he Ministry of Finance national outstanding teacher Government
Special Allowance expert under the State Council. He used to served as independent director of this
Company from May 13 2010 to May 12 2013 and from May 23 2014 to May 17 2019. Now he is
the professor and the doctoral supervisors of the Ocean University of China and also holds a
concurrent post of independent director of the Company and Qingdao Zhongcheng Group Co. Ltd..Mr. Yan Xu male 63 Chinese doctoral degree. He is currently the Director of the Key
Laboratory of Industrial Biotechnology Ministry of Education Jiangnan University the Director of
the Brewing Microbiology and Applied Enzymology Laboratory of Jiangnan University the
Principal Investigator (PI) of National Key Laboratory of Food Science and Resource Mining the
deputy director of the Baijiu Technology Committee of the China Alcoholic Drinks Association the
deputy director of the Baijiu Expert Committee of China National Food Industry Association the
fellow of the Department of Agricultural and Food Chemistry of the American Chemical Society
(ACS) and the chief scientist of the national double tops construction “Light Industry Engineeringand Technology” discipline. He has published more than 200 academic articles internationally and
is a highly cited scholar in the global field. His main research interests are brewing microbiology
and industrial enzymology in the field of microbial fermentation engineering. He used to serve as
44Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
the independent director of several listed companies and currently serves as the independent
director of two listed companies- Kouzijiao and Wayzim.Mr. Jianluan Guo male 63 Chinese doctoral degree. He is currently a professor and doctoral
supervisor of Business School of Central University of Finance and Economics the director of
Commercial Bank Management Research Institute Central University of Finance and Economics
the independent director of Tianjin Trust Co. Ltd. and the independent director of Hebei Happy
Consumer Finance Co. Ltd. He has worked in manufacturing enterprises research institutions
commercial banks and investment companies for nearly 20 years. He is mainly engaged in teaching
research and social services in strategic management corporate governance performance pay
internal risk control corporate mergers and acquisitions financial markets and other fields.Ms. Xin Su female 57 doctoral degree. She is currently the the director of Research Center of
Government Performance Evaluation in Shandong University of Finance and Economics
second-level professor and doctoral supervisor. She is an expert who enjoys the special government
allowance of the State Council a young and middle-aged expert who has made outstanding
contributions to Shandong Province and a high-end talent expert of Shandong Thinktank Alliance.She has long been engaged in research on economic management organizational innovation
performance evaluation and other related issues. She used to serve as the independent director of
listed company and currently serves as an outside director of Hualu Group.* Other senior executives
Mr. Bin Peng male 59 years old MBA senior engineer ever successively served as the
Department Chief of Technical Transformation Department and the Minister of Investment and
Development Department of the Company as well as the General Manager Assistant of Yantai
Changyu Group Co. Ltd.. He currently serves as the Deputy General Manager of the Company.Mr. Jianfu Pan male 50 years old Chinese MBA and senior economist used to serve as the
General Manager of the Jiangxi Branch of the Company the General Manager of the Shanghai
marketing management company and the General Manager of Beijing marketing management
center. Currently he is a General Manager Assistant of the Company.Mr. Qingkun Kong male 53 years old Chinese MBA and economist used to serve as a section
member of production department in the healthy liquor branch office a clerk and the Deputy
Director and the Director of general manager office and the chairman of the Company’s Board of
Supervisor. Currently he serves as a General Manager Assistant of the Company.Mr. Shilu Liu male 51 years old Chinese master degree used to be the Manager of Tianjin
branch of the Company the Competence Manager of North China market the General Manger of
Beijing marketing management company the General Manager of Guangdong marketing
management center and the General Manager of e-commerce branch of the Company. Currently he
serves as the General Manager Assistance of the Company and the General Manager of Yantai
Changyu Pioneer Wine Sales Co. Ltd..Mr. Zhenbo Xiao male 49 years old Chinese MBA served as the Deputy Manager of the
Company’s market strategy development center the General Manager of Shandong marketing
management company and Yantai Changyu liquor company. He currently serves as the General
Manager Assistant of the Company.Mr. Hongbo Sun male 43 years old Chinese master degree used to served as the Manager of
Marketing Department the Executive Deputy Manager and General Manager of the E-commerce
Company of the Company. He currently serves as the General Manager Assistant of the Company
45Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
the General Manager of the Online Sales Business Division and the General Manager of the
E-commerce Company.Ms. Cuimei Guo female 52 years old Chinese master degree senior accountant Certified Public
Accountant of China International Certified Internal Auditor a high-end accounting talent in
Shandong Province used to served as an auditor in the Audit Department of the Company the
Minister Assistant and Deputy Minister of the Finance Department. She currently serves as the
General Manager Assistant of the Company the Minister of Finance Department and the Deputy
Director of the Overseas Enterprise Management Office of the Company.The situation where the controlling shareholder and the actual controller concurrently hold the
positions of the Chairman and the General Manager of the listed company
Applicable □Inapplicable
Mr. Hongjiang Zhou also holds concurrent post as the Chairman of the controlling shareholder
Yantai Changyu Group Co. Ltd..Post in the shareholder’s company
Applicable □Inapplicable
Beginning date Ending date Paid by shareholder’s
Name Shareholder’s Company Post
of the post of the post company or not
Hongjiang ZHOU Yantai Changyu Group Co. Ltd. Chairman 2018.01.10 2029.02.06 No
Jian SUN Yantai Changyu Group Co. Ltd. Director 2018.01.10 2029.02.06 No
Jiming LI Yantai Changyu Group Co. Ltd. Director 2018.01.10 2029.02.06 No
Jinfeng REN Yantai Changyu Group Co. Ltd. Director 2025.05.15 2029.02.06 No
Marco Giovanni Ferrari Yantai Changyu Group Co. Ltd. Director 2024.09.02 2029.02.06 No
Claudio Michele Yantai Changyu Group Co. Ltd. Director 2025.05.15 2029.02.06 No
d’Agostino
Samara Orsatti Yantai Changyu Group Co. Ltd. Director 2025.05.15 2029.02.06 No
Yun CHIANG Yantai Changyu Group Co. Ltd. Director 2020.05.12 2029.02.06 No
Explanation for the post in
none
the shareholder’s company
Post at other companies
□Applicable Inapplicable
Disciplinary actions taken by securities regulators in recent 3 years to the Company’s directors
supervisors and senior management both on the job and left during the report period
□Applicable Inapplicable
(3) Salary of directors and senior executives
The situation of decision-making process the basis of determination and the actual payment of
remuneration for directors and senior executives
46Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The annual allowance for the independent directors of the company is CNY100000 which has
been paid in one lump sum within the year. The salaries of other directors and senior executives are
determined based on the assessment results of the Compensation Performance Design (2025-2027) for
Senior Executives of the Company. This design has been approved by the Company’s board of
directors. The 2025 performance assessment results of the Company’s senior executives have been
approved by the Company’s board of directors. Other directors and senior executives of the
Company have received partial salaries on a monthly basis and the remaining part will be paid in
2026 based on the assessment results.
Salary of directors supervisors and senior executives during the report period
Unit: CNY’0000
Total reward from the Whether get reward from
Name Gender Age Post Status
Company before tax related parties of the Company
Hongjiang ZHOU M 61 Chairman Incumbent 98.88 No
Jian SUN M 59 Director and General Manager Incumbent 90.69 No
Jiming LI M 59 Director and Deputy General Manager Incumbent 70.22 No
Director Deputy General Manager and
Jianxun JIANG M 59 Incumbent 70.22 No
Board secretary
Jinfeng REN M 53 Director Incumbent 0 Yes
Marco Giovanni
M 52 Director Incumbent 0 Yes
Ferrari
Stefano Battioni M 67 Director Outgoing 0 Yes
Enrico Sivieri M 57 Director Outgoing 0 Yes
Yun CHIANG F 58 Director Incumbent 0 Yes
Claudio Michele
M 55 Director Incumbent 0 Yes
d’Agostino
Samara Orsatti F 50 Director Incumbent 0 Yes
Changqing DUAN M 61 Independent Director Outgoing 4.17 No
Huirong LIU F 62 Independent Director Outgoing 4.17 No
Qinglin LIU M 62 Independent Director Outgoing 4.17 No
Renzhu YU M 47 Independent Director Incumbent 10 No
Zhuquan WANG M 60 Independent Director Incumbent 10 No
Yan XU M 63 Independent Director Incumbent 6.03 No
Jianluan GUO M 63 Independent Director Incumbent 6.03 No
Xin SU F 57 Independent Director Incumbent 6.03 No
Hua JIANG M 62 Deputy General Manager Outgoing 28.86 No
Bin PENG M 59 Deputy General Manager Incumbent 70.22 No
Jianfu PAN M 50 General Manager Assistant Incumbent 49.74 No
Qingkun KONG M 53 General Manager Assistant Incumbent 49.74 No
Shilu LIU M 51 General Manager Assistant Incumbent 47.97 No
Zhenbo XIAO M 49 General Manager Assistant Incumbent 49.74 No
Hongbo SUN M 43 General manager assistant Incumbent 13.55 No
Cuimei GUO F 52 General manager assistant Incumbent 27.53 No
Total -- -- -- -- 717.96 --
47Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The assessment basis for the actual compensation received by all Compensation Performance Design
directors and senior executives at the end of the reporting period (2025-2027) for Senior Executives
The assessment completion status of the actual compensation received Failed to achieve the Company’s main
by all directors and senior executives at the end of the reporting period performance indicators for 2025 thatwere set at the beginning of the year.The deferred payment arrangements for the actual compensation
received by all directors and senior executives at the end of the No
reporting period
The situation of actual salary payments and recovery rights for all
directors and senior executives at the end of the reporting period No
Other information note
□Applicable Inapplicable
48Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
5. Performance of directors during the report period
(1) Attendance of directors for the board of directors’ and the shareholders’ meetings
Attendance of directors for the board of directors
Required Communication Authorized Whether or not to attend the meetings Attendance time for the
Name On-site attendance Absence
attendance time attendance attendance personally for successive twice shareholders’ meeting
Hongjiang ZHOU 7 2 5 0 0 No 4
Jian SUN 7 2 5 0 0 No 1
Jiming LI 7 2 5 0 0 No 1
Jianxun JIANG 7 2 5 0 0 No 4
Xunzhang LIU 2 0 1 1 0 No 0
Marco Giovanni Ferrari 7 2 5 0 0 No 0
Stefano Battioni 2 0 1 1 0 No 0
Enrico Sivieri 2 0 1 1 0 No 0
Yun CHIANG 7 2 5 0 0 No 0
Changqing DUAN 2 1 1 0 0 No 0
Huirong LIU 2 0 1 1 0 No 0
Qinglin LIU 2 1 1 0 0 No 0
Renzhu YU 7 2 5 0 0 No 0
Zhuquan WANG 7 2 5 0 0 No 0
Jinfeng REN 5 1 4 0 0 No 1
Claudio Michele d’Agostino 5 1 4 0 0 No 0
Samara Orsatti 5 1 4 0 0 No 0
Jianluan GUO 5 1 4 0 0 No 1
Yan XU 5 1 4 0 0 No 0
Xin SU 5 1 4 0 0 No 1
Explanation for failed to personally attend the Board of Directors’ meetings for successive two times
49Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
No
(2) Any objections for the Company’s projects from the directors
Whether or not the directors raised any objection for the Company’s projects
□Yes No
During the report period the directors did not raise any objections for the Company’s projects.
(3) Other explanations on directors’ performance
Whether or not the directors’ propositions are accepted by the Company
Yes No
The explantion on the directors’ propositions are accepted or are not accepted by the Company
Some of the Company’s directors have proposed that greater attention should be paid to the unique roles of new media and emerging channels in brand
promotion and product sales; efforts should be accelerated to develop low-alcohol products to meet the needs of different consumer groups.
6. Performance of the special committees under the Board of Directors during the report period
Important comments Other Specific
Committees Numbers of Held
Members Meeting contents and suggestions performance circumstances of the
name meeting held date
made of duties objection (if have)
The meeting deliberated and approved the 2024
The First Xunzhang LIU Changqing
Annual Report Draft Proposal on 2024 Annual
Auditing DUAN Huirong LIU
2025.04 Profit Distribution Proposal on Appointing
Committee Qinglin LIU Renzhu YU 1 — — No.16 Certified Public Accountants Firm 2024 Annual
Meeting in Zhuquan WANG Enrico
Self Assessment Report on Internal Control and
2025 Sivieri
2025 Annual Internal Audit Plan.
The Second Xunzhang LIU Changqing
Auditing DUAN Huirong LIU
2025.04 The meeting deliberated and approved the 2025
Committee Qinglin LIU Renzhu YU 1 — — No.23 First Quarter Report.Meeting in Zhuquan WANG Enrico
2025 Sivieri
50Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The Third
Jinfeng REN Jianluan
Auditing
GUO Yan XU Xin SU 2025.06 The meeting deliberated and approved the Proposal
Committee 1 — — No
Renzhu YU Zhuquan .09 on Election of Auditing Committee Convenor.Meeting in
WANG Samara Orsatti
2025
The Fourth
Jinfeng REN Jianluan
Auditing The meeting deliberated and approved the 2025
GUO Yan XU Xin SU 2025.08
Committee 1 Semi-Annual Report and Proposal on 2025 — — No
Renzhu YU Zhuquan .26
Meeting in Semi-Annual Profit Distribution.WANG Samara Orsatti
2025
The Fifth
Jinfeng REN Jianluan
Auditing
GUO Yan XU Xin SU 2025.10 The meeting deliberated and approved the 2025
Committee 1 — — No
Renzhu YU Zhuquan .23 Third Quarter Report.Meeting in
WANG Samara Orsatti
2025
Changqing DUAN
The First
Huirong LIU Qinglin LIU
Emolument The meeting deliberated and approved the Proposal
Renzhu YU Zhuquan 2025.04
Committee 1 on 2024 Annual Performance Assessment Results of — — No
WANG Yun CHIANG .16
Meeting in the Company’s Senior Executives.Jianxun JIANG Marco
2025
Giovanni Ferrari
The Second Jianluan GUO Yan XU
The meeting deliberated and approved the Proposal
Emolument Xin SU Renzhu YU
2025.06 on Election of Emolument Committee Convenor and
Committee Zhuquan WANG Yun 1 — — No.09 Proposal on Compensation Performance Design
Meeting in CHIANG Jianxun JIANG
(2025-2027) for Senior Executives.
2025 Marco Giovanni Ferrari
The Third Jianluan GUO Yan XU The meeting deliberated and approved the The
2025.07
Emolument Xin SU Renzhu YU 1 Proposal on Failure to Achieve Conditions for — — No.25
Committee Zhuquan WANG Yun Lifting Restrictions in the Second Period of Lifting
51Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Meeting in CHIANG Jianxun JIANG Restriction involved in the Company’s 2023
2025 Marco Giovanni Ferrari 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.
7. The work of the Board of Supervisors
Whether or not the Board of Supervisors found any existence risk to the Company in oversight activities during the report period
□Yes No
The Board of Supervisors has no objections to supervision matters during the report period.
52Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
8. Staff of the Company
(1) Staff number specialty constitution and education degree
Incumbent staff number of parent company at the end of reporting period(people) 902
Incumbent staff number of major subsidiary companies at the end of reporting period
1209
(people)
Total incumbent staff at the end of reporting period (people) 2111
Total staff getting paid in current period (people) 2111
Retired staff number whose expenses are undertaken by parent company or subsidiary
0
companies (people)
Specialty constitution
Category Number of people (people)
Production staff 608
Sales staff 1042
Technical staff 121
Financial staff 95
Administrative staff 245
Total 2111
Education degree
Category Number (People)
Postgraduate and above 106
Bachelor 838
Junior College 670
Technical secondary school or Senior high school 360
Junior high school and below 137
Total 2111
(2) Remuneration policy
The Company has established and improved the remuneration and welfare system including salary
system incentive mechanism social security and medical insurance and so on to ensure the
participation of all employees. In accordance with the law the Company purchases social
endowment insurance medical insurance occupational injury insurance unemployment insurance
and maternity insurance and pays housing fund for the employees. Based on the principle of
“distribution according to work and equal pay for equal work” the Company pays the staff’s
remuneration timely. With the improvement of the Company’s profitability the Company steadily
improves the staff’s remuneration and welfare and provides its employees the competitive salary
and equal opportunity for development.
(3) Training plan
In 2026 the Company plans to enhance the core theme of “linnovation and decision-making power”
of employees and train employees at all levels to improve their innovation and decision-making
ability adapt to market changes and enhance the competitive advantage of enterprises. The
53Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Company plans to customize personalized and systematic courses for different positions and
maintain quarterly training for employees at all levels for 1-2 times at least 2 days each time and
ensure that the training rate of employees of the Company could reach to 100% during the year.Focus on improving the scientific decision-making ability of the Company’s corporate-level leaders.The plan is to improve the political literacy strengthen the construction of party conduct and clean
government and cultivate strategic vision and overall outlook of the leading group through the form
of on-site teaching and holding meetings instead of training. By analyzing the development trend of
the global economy and the wine industry seize the opportunity timely and seek the rapid
development of the enterprise.Focus on improving management innovation for middle-level management personnel. It is planned
to use on-site teaching video courses self-study books and other forms to learn how to enhance the
awareness of management innovation of middle-level management personnel. Encourage
middle-level management personnel to participate advanced degree training such as MBA and
upgrade professional titles to ensure that the company’s cadre team to meet the needs of the
Company’s sustainable development improve the ability of middle-level cadres to do practical
work and better lead team members to work. Invite experts to the Company to give on-site lectures
explain the knowledge of AI application and enhance the working ability of the majority of
middle-level management personnel. Conduct safety knowledge training irregularly every month to
strengthen safety awareness and the ability to identify and respond to safety risks.Improve their thinking innovation for employees whose level are or below section chief through
combining on-site teaching and outreach training. Enhance the business ability and professional
knowledge reserve level of ordinary staff. Encourage multi-dimensional innovation of employees in
daily work optimize the work process and better complete the work content of each module.Arrange safety knowledge training every month to enhance safety awareness and the ability to
identify and respond to safety risks.The training for new employees is mainly based on basic training based on-site teaching outreach
training and field visits and learning. It aims to improve the basic knowledge of new employees in
labor law production technology safety and other professional aspects and in-depth learning of
corporate culture rapid change of identity improve the physical quality of new employees and
enhance the sense of corporate identity and belonging.
(4) Labor outsourcing
Applicable Inapplicable
9. The Company’s profit distribution and increasing equity with capital reserve
Profit distribution policies especially promulgation implementation or adjustment of cash dividends
policies during the report period
Applicable □Inapplicable
Deliberated and passed by the Company’s 2024 Annual Shareholders’ Meeting convened on May
23 2025 the Company’s 2024 annual profit distribution scheme is shown as follows: based on total
671823900 shares the Company would pay cash dividend to all shareholders registered on the
share registration day: CNY4 per ten shares in cash with a total of CNY268729560.
54Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
From disclosure of the distribution scheme to implementation the total share capital of the
Company has not changed.On June 13 2025 the Company published Implementation Announcement of 2024 Annual Equity
Distribution on China Securities Journal Securities Times and www.cninfo.com.cn determining
that the share registration day and the ex-dividend day of A Share was respectively on June 19
2025 and June 20 2025. The last trading day the ex-dividend day and the share registration day of
B Share was respectively on June 19 2025 June 20 2025 and on June 24 2025.This time the dispatching objects contain all A Shareholders registered at China SecuritiesDepository and Clearing Corporation Limited Shenzhen Company (hereafter referred to as “CSDCShenzhen Company”) up to the afternoon of June 19 2025 after the closing of Shenzhen Stock
Exchange and all B Shareholders registered at CSDC Shenzhen Company up to the afternoon of
June 24 2025 (The last trading day was on June 19 2025) after the closing of Shenzhen Stock
Exchange. The dispatching this time has already been successfully completed in June of 2025. The
profit distribution scheme implemented is in accordance with the profit distribution scheme
approved by the Shareholders’ Meeting.The implementation time of the profit distribution scheme has been less than two months since the
Shareholders’ Meeting of the Company approved the scheme.Special explanation for the cash dividends policy
Whether it is in accordance with the requirements of the regulation in the Articles of Yes
Association and the resolution of shareholders’ meeting
Whether the distribution standard and proportion is clear and definite Yes
Whether the relevant decision process and mechanism is complete Yes
Whether the independent directors perform their responsibilities and play the roles Yes
If the company does not pay cash dividend it should disclose the specific reasons and The company had paid
the next steps to enhance the return level of investors: cash dividend
Whether the small and middle shareholders have the chance to express their opinions Yes
and appeals as well as their lawful right and interest is in an enough protection
Whether it is legal and transparent for the condition and process while adjusting and Yes
amending the cash dividends policy
During the report period the Company earned profit the profit of the parent company that could be
distributed to shareholders was positive but without proposing cash dividend distribution
preliminary scheme.Applicable Inapplicable
The Company’s preliminary scheme of profit distribution and preliminary scheme of increasing
equity with capital reserve for the report period
Applicable □Inapplicable
Number of sending bonus shares per ten shares (share) 0
Number of dividend payout per ten shares (CNY) (including tax) 2.5
The cardinal number of the capital stocks for the preliminary distribution scheme (share) 657240128
Cash dividend distribution（CNY）(including tax) 164310032
Amount of cash dividends (eg. shares buy-back)（CNY）in other ways 99416388.42
55Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Total cash dividend distribution（CNY）(including other ways) 263726420.42
Distributable profit（CNY） 9037437598
The proportion of cash dividend distribution in the total profit distribution (including other ways) 100
Cash dividend distribution this time
If the Company’s development is in growth stage and major capital expenditure is arranged while making profit distribution
the proportion of cash dividends should takes up no less than 20% in this profit distribution.Detailed explanation for the preliminary scheme of profit distribution or increasing equity with capital reserve
According to the audit result from KMPG Huazhen LLP the net profit belonging to the parent company’s shareholders in the
consolidated statement in 2025 is CNY71291303 and the net profit of the parent company in financial statement in 2025 is
CNY251439621. According to PRC accounting standard the situation for attributable profits of the consolidation and the
parent company at the end of 2025 as following:
Unit: CNY
Consolidation Parent company
Year-end undistributed profit 9037437598 9810553230
Among which: Total comprehensive income in 2025 71291303 251439621
Undistributed profit carried forward from beginning of the year 9232928370 9825895684
Dividends distribution of 2024 266782075 266782075
Legal earned surplus reserve to be drawn 0 0According to regulation of 155th item in the Articles of Association which is that “the Company can distribute dividends eitherin cash or by share with priority given to cash. Except for the circumstances stipulated in this Articles where profit
distribution is not allowed the profit to be distributed each year is not less than 25% of the distributable profit realized in the
same year and the accumulated sum of profit distributed in cash in the last three years is not less than 30% of the yearlyaverage distributable profit realized in the last three years.”. Meanwhile considering the amount on the capital expenditure in
2026 under the condition of not influencing the normal production and operation the Company put forward preliminary
scheme on profit distribution in 2025 as following:
Because the left amount of legal earned surplus reserve reaches 50% of registered capital while making profit distribution the
legal earned surplus reserve will not be drawn. Based on the Company’s 657240128 shares at total up to December 31 2025
the Company plans to pay CNY2.5 in cash as dividends for every ten share (including tax) to the Company’s all shareholders
totaling up to CNY164310032. The retained and undistributed net profit will be reserved for distribution in the next year.The cash dividend distributed to shareholders of domestic listed foreign shares (B share) is paid in HKD converted based on
the middle rate between CNY and HKD issued by the People’s Bank of China on the first working day after the resolution
date of 2025 Annual Shareholders’ Meeting.
10. Implementation of the Company’s equity inventive plan employee stock ownership plan or
other employee incentive measures
Applicable □Inapplicable
(1) Equity Inventive
The Company’s 2023 restricted share incentive plan granted a total of 203 individuals. During the
reporting period the Board of Directors of the Company in accordance with the relevant provisions
of the Incentive Plan after deliberation determined that due to failure to meet the performance
assessment requirements the Company bought back and cancelled 1864305 restricted shares that
56Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
have been granted but not yet released from restrictions to the 179 incentive recipients; as one
incentive recipient has resigned due to personal reasons and no longer met the conditions of the
Incentive Plan the Company bought back and cancelled 21946 restricted shares that the departing
incentive recipient has been granted but not yet released from restrictions; as sixteen incentive
recipients no longer met the conditions of the Incentive Plan due to job changes the Company
bought back and cancelled 267521 restricted shares that have been granted to these incentive
recipients but not yet released from restrictions. Therefore the Company bought back and cancelled
a total of 2153772 restricted shares.In view of the implementation of the 2023 annual equity distribution and 2024 annual equity
distribution after the completion of the share registration of the restricted share granted to the
incentive objects the Board of Directors adjusted the buy-back price of the restricted share that has
not yet been lifted restriction under the 2023 restricted share incentive plan in accordance with the
provisions of the Incentive Plan. Therefore the buy-back price of the restricted shares of this
buy-back and cancellation was CNY14.65 per share.Equity incentives granted to directors and senior executives of the Company
Applicable Inapplicable
57Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Unit: shares
Number of Number of Number of Number of The exercise Number of The marketing Number of Number Number of Grant Number of
share new share feasible exercised price of share price at the restricted of shares new restricted price of restricted
options options shares shares exercised shares options end o f the shares held unlocked share granted restricted share held
Name Position
held at the granted during during the during the during the held at the reporting at the during during the share at the end
beginning the reporting reporting reporting reporting period end of the period beginning of the reporting (CNY/sh of the
of the year period period period (CNY/share) period (CNY/share) the period period period are) period
Hongjiang
Chairman 168000 72000 96000
ZHOU
Director
Jian SUN and General 147000 63000 84000
Manager
Director
and Deputy
Jiming LI 112000 48000 64000
General
Manager
Director
Deputy
Jianxun General
1120004800064000
JIANG Manager
Board
secretary
General
Manager of
Hua JIANG Brandy 112000 48000 64000
Business
Division
Deputy
Bin PENG General 112000 48000 64000
Manager
General
Jianfu PAN Manager 70000 30000 40000
Assistant
General
Qingkun
Manager 70000 30000 40000
KONG
Assistant
58Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
General
Shilu LIU Manager 70000 30000 40000
Assistant
General
Zhenbo
Manager 70000 30000 40000
XIAO
Assistant
General
Hongbo
Manager 25182 10793 14389
SUN
Assistant
General
Cuimei
Manager 28763 12327 16436
GUO
Assistant
Total -- 0 0 0 0 -- 0 -- 1096945 470120 0 -- 626825
Mr. Hua Jiang used to be the Company’s Deputy General Manager when the restricted shares were granted in 2023 and he is currently the General Manager of the Brandy Business
Note（if have）
Division.Evaluation mechanisms and incentives for senior executives
According to the Compensation Performance Design (2025-2027) for Senior Executives approved by the Board of Directors the compensation
of senior executive includes basic compensation (fixed compensation+performance compensation) excess profit commission and long-term
incentive (deferred cash).The Company has continuously improved the performance appraisal mechanism and the evaluation and incentive of senior executives are linked
to the Company’s performance and personal work results. At the beginning of the year according to the overall development strategy and annual
business objectives of the Company the annual performance indicators and job responsibilities of senior executives are determined according to
the division of work. The annual performance and work results are presented by the Emolument Committee of the Board of Directors. After the
deliberation and approval of the assessment results the performance assessment of senior executives is carried out and the rewards and
punishments are honored.
(2) The implementation of employee shareholding plan
Applicable Inapplicable
(3) Other employee incentives
Applicable Inapplicable
59Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
On June 26 2023 the restricted share incentive plan was first granted and registered. In addition to the above directors and senior executives the
Company also granted 5.2956 million restricted shares to 193 middle-level managers and core personals.
11. Construction and implementation of internal control system during the reporting period
(1) Construction and implementation of internal control
For the construction and implementation of the company’s internal control please refer to the 2025 Annual Self-Assessment Report on Internal
Control disclosed in Securities Times China Securities Journal and www.cninfo.com.cn on April 18 2026.
(2) Specific situations for significant defects of the internal control found during the report period
□Yes No
12. The company’s management and control over subsidiaries during the reporting period
Company name Integration plan Integration progress Problems encountered in integration Actions taken Resolve progress Follow-up resolution plan
None None None None None None None
There are abnormal circumstances in the management and control of the subsidiaries.□Yes No
13. Internal control self-assessment report or internal control audit report
（1）Internal control self-assessment report
Disclosure date for full text of the internal control self-assessment report 2026.04.18
Disclosure index for full text of the internal control self-assessment report 2025 Annual Self-Assessment Report on Internal Control was disclosed on Securities TimesChina Securities Journal and
www.cninfo.com.cn by the Company on April 18 2026
Percentage of total unit assets included in scope of the assessment accounting for
80.21%
the Company’s total assets of consolidated financial statements
Percentage of unit operating income included in scope of the assessment accounting
81.44%
for the Company’s operating income of consolidated financial statements
60Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Standards of Defect Identification
Category Financial report Non-financial report
Significant defects: one defect of internal control individually or together with other Significant defects: Any situations listed below appears it can be
defects has the reasonable probability to cause the significant misstatements which regarded as significant defects. Operation: Unable to achieve all
cannot be promptly prevented or found and corrected timely in the financial report. operation target or key business index widely out of budget in
For example: Company’s Directors Supervisors and Senior Management have various aspects. Safety accident effects: Cause one person and
fraudulent practices; The Company makes corrections for the published financial above death or more than 3 person serious injuries. Major
report; The audit of external intermediary agent finds significant misstatement negative effects: Negative information frequently appears in the
existing in the current financial report but the Company does not realize it during the medias with involving a wide scope in the international and national
operation process; Negative information frequently appears in the medias with mainstream media. Environment effects: Create irreparable
involving a wide scope; The Company’s audit committee and internal audit damages to environment and cause massive public complains.department makes an inefficient supervision for internal control; Other situations Major defects: Any situations listed below appears it can be
maybe cause significant misdirection which guides the report users to make the right regarded as major defects. Operation: Unable to achieve partly
judgment. operation target a big margin out of budget in various aspects.
Major defects： The defect of internal control individually or together with other Safety accident effects: Without reaching the number of person loss
Qualitative criteria
defects has the reasonable probability to cause the significant misstatements which or serious injury of significant defects. Major negative effects:
cannot be promptly prevented or found and corrected timely in the financial report Negative news appears in the media with influencing a wide scope
although the misstatements neither achieves nor exceeds the importance level but still in the provincial mainstream media. Environment effects: Cause
arising the attention of Board of Directors and management team. Failure to select heavy environment damages and massive public complains ought
and apply accounting regulations in accordance with generally accepted accounting to carry out the significant remedial measures.principles; Failure to establish the anti-fraud procedures and control measures; General defects: Any situations listed below appears it can be
Failure to set up corresponding control mechanism or to carry out and take regarded as general defects. Operation: Other effects unable to
corresponding compensating control for the accounting treatments with irregular and constitute the significant defects or major defects. Safety accident
special deal; Negative news appears in the media with influencing a wide scope; effects: Personal injury less than the quantitative standards of major
One or more defects exist in the control during the process of the ending financial defects. Major negative effects: Other defects unable to constitute
report and the target of achieving truthfulness and integrality cannot be reasonably the significant defects or major defects. Environment effects:
guaranteed in the financial report; General defects refer to the other control defects Other environment effects unable to constitute the significant
which do not constitute the significant and major defects. defects or major defects.
61Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
For total assets/Owner’s equity: For direct property loss:
Significant defects: misstatements ≧1% or Significant defects: More than CNY10million
Major defects: 0.5%≦misstatements<1% or Major defects: CNY1million-CNY10million (including
General defects: misstatements<0.5% CNY1million)
For operation revenue: General defects: Less than CNY1million
significant defects: misstatements ≧1% or
Quantitative criterion
Major defects: 0.5%≦misstatements<1% or
General defects: misstatements<0.5%
For pretax profit:
Significant defects: misstatements≧5%or
Major defects: 2%≦misstatements<5%or
General defects: misstatements<2%
Number of significant defect in financial report 0
Number of significant defect in non-financial report 0
Number of major defect in financial report 0
Number of major defect in non-financial report 0
(2) Internal control audit report
Applicable □Inapplicable
Audit opinions of the internal control audit report
We believe that the company maintained effective internal control over financial reporting in all material aspects in accordance with the Basic Norms for Corporate Internal Control and related regulations on
December 31 2025.Disclosure of the internal control audit report Disclosure
Disclosure date for the full text of the internal control audit report 2026.04.18
2025 Annual Self-Assessment Report on Internal Control was disclosed on Securities Times China Securities Journal and www.cninfo.com.cn by
Disclosure index for the full text of the internal control audit report
the Company on April 18 2026.Opinion type of the internal control audit report Standard without reserved opinion
Whether or not exists significant defects in non-financial reports No
62Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Whether or not the accounting firm issued non-standard opinions for the audit report of internal control
□Yes No
Whether the audit report of internal control issued by the accounting firm is in consistency with the self-assessment report of the board of directors
Yes No
Whether a non-standard audit opinion on internal control was issued during the reporting period or the previous year
□Yes No
14. Self-inspection and rectification of problems in the special action on governance of listed company
No.
15. Major environmental issues
Whether the listed company and its subsidiaries belong to major polluters published by the environmental protection department
Yes No
The number of enterprises included in the list of enterprises legally disclosing environmental information 1
No. Company Name Query index for the report on the legal disclosure ofenvironmental information
1 Liaoning Changyu Golden Icewine Valley Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
16. Social responsibility performance
Please refer to the 2025 Environmental Social and Regulatory Report (ESG) disclosed on CNINFO (www.cninfo.com.cn) by the Company on April 18
2026.
17. Consolidate and expand the achievements of poverty alleviation and rural revitalization
Please refer to the “Charity and Community Involvement” section of 2025 Environmental Social and Regulatory Report (ESG) disclosed on CNINFO
(www.cninfo.com.cn) by the Company on April 18 2026.
63Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
V. Major issues
1. Implementation of commitments
(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
Commitment Commitment Commitment
Commitments Commitment type Commitment content Implementation
party time period
Yantai Changyu Solve horizontal
Non-horizontal competition 1997.05.18 Forever Has been performing
Group Co. Ltd. competition
From 2013 to 2017 according to Trademark License
Commitments
According to Trademark License Contract the trademark Contract the trademark use fee annually paid by the
at the initial
royalty of Changyu and other trademarks paid by the Company 1997.05.18 Company to Changyu Group shall be mainly used by
public offering Yantai Changyu Clear the use of
to Yantai Changyu Group Co. Ltd. every year is mainly used for 1997.05.18 - Changyu Group to publicize trademarks including Changyu
or refinancing Group Co.Ltd. trademark royalty
advertising Changyu and other trademarks and this contract 2019.04.04 and contract products. Except 2013 to 2017 during which the
products by Yantai Changyu Group Co. Ltd. commitment was not strictly performed Yantai Changyu
Group Co. Ltd. has been performing its commitment.Commitment under timely implementation or not Yes
Whether or not to have specific reasons of the unimplemented commitment and next steps None
(2) The Company should make a statement on the achieved original profit forecast of assets or projects and its reason if there is profit forecast
of Company’s assets or projects and the report period is still in the profit forecast period
□Applicable Inapplicable
(3) The performance commitments involved by the Company
□Applicable Inapplicable
64Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
2. Non-operating capital occupying of listed company by controlling shareholder and its related parties
□Applicable Inapplicable
There are no non-operating capitals occupying of 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. Explanation of board of directors on the latest Non-standard Audit Report
□Applicable Inapplicable
5.Explanation of Non-standard Audit Report given by accounting firm in the report period from board of directors board of supervisors and
independent directors
□Applicable Inapplicable
6.Compared with the last year’s financial report explanation of the changes in accounting policy accounting estimation or correction of
significant accounting errors
□Applicable Inapplicable
There is no changes of accounting policy accounting estimation or correction of significant accounting errors during the report period.
7.Compared with the last year’s financial report explanation for the changes of the consolidated statements scope
Applicable Inapplicable
During the reporting period the Company transferred the equity of its subsidiary ETABLISSEMENTS ROULLET FRANSAC thereby causing a
corresponding change in the consolidated scope.
65Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
8.The appointment and dismissal of certified public accountants
Currently appointed accounting firm
Domestic accounting firm name KPMG Hua Zhen LLP
Remuneration for domestic accounting firm (CNY’0000) 205
Consecutive period for the audit service of domestic accounting firm 7
Name of certified public accountant for the audit service of domestic accounting firm Jia WANG Zhichao LIU
Consecutive period for the certified public accountant’s audit service of domestic
7
accounting firm
Overseas accounting firm name (if have) —
Remuneration for overseas accounting firm (CNY’0000) (if have) 0
Consecutive period for the audit service of overseas accounting firm (if have) —
Name of certified public accountant for the audit service of overseas accounting firm
—
(if have)
Consecutive period for the certified public accountant’s audit service of overseas
—
accounting firm (if have)
Whether or not to employ a new accounting firm during the report period
Yes No
To employ internal control audit accounting firms financial adviser or sponsor.Applicable Inapplicable
This year KPMG Huazhen LLP was hired as the internal control audit institution. The audit fee was not
determined separately but was CNY2.05million together with the financial report audit fee.
9.Face of suspension and termination of listing after the disclosure of annual report
Applicable Inapplicable
10.Bankruptcy reorganization
Applicable Inapplicable
There is no bankruptcy reorganization during the report period.
11.Material litigation and arbitration
Applicable Inapplicable
There are no material litigation and arbitration during the report period.
12.Penalty and rectification
Applicable Inapplicable
There are no penalty and rectification during the report period
13.Credit of the Company holding shareholders and actual controllers
Applicable Inapplicable
66Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
14.Significant related transactions
(1) Related transactions in relation to daily operations
Applicable □Inapplicable
Proportion Whether
Approved Available
Amount accounting for exceed Cleari
Related Relationsh Pricing transaction market price Disclosur
Type Content Price (CNY‘000 amount of approved ng Disclosure index
party ip principle quota of similar e date
0) similar transaction form
(CNY‘0000) transactions
transactions quota
Anticipated
Announcement on
Purchase 2025 Annual
Yantai Controlled
Purchase and Routine Related
Shenma by the Determine
and commission Agreemen 2025.04. Transaction
Packagin same d by 5548 16.91% 6800 No Cash No
commission processing t pricing 18 disclosed in China
g Co. parent agreement
processing packaging Securities
Ltd. company
materials JournalSecurities
Timesand
CNINFO in 2025
Total -- -- 5548 -- 6800 -- -- -- -- --
Details of the return of large sales No
Actual performance of the estimated total amount for daily operations related transactions by category that will occur during this period (if have) No
Reason for the deference between transaction price and market reference price (if applicable) No
67Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Related transactions in relation to acquisition and sales of assets or equity
Applicable Inapplicable
There is 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 is no related transactions in relation to common foreign investment during the report period.
(4) Related current credit and debt transactions
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) Transactions with related financial companies
Applicable Inapplicable
There is no deposit loan credit or other financial business between the Company and related
financial companies and related parties.
(6) Transactions between the related parties and financial companies controlled by the
Company
Applicable Inapplicable
There is no deposit loan credit or other financial business between the related parties and the
financial companies controlled by the Company.
(7) Other major related transactions
Applicable Inapplicable
The company has no other significant related party transactions during the reporting period.
15.Major and important contracts and execution results
(1) Trusteeship contract and leasehold issues
Trusteeship situation
Applicable Inapplicable
There is no trusteeship situation during the report period
Contract situation
Applicable Inapplicable
There is no contract situation during the report period. Leasehold situation
68Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Applicable □Inapplicable
Explanation for lease situation
On January 1 2022 the Company renewed the Space Lease Agreement with the controlling
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.
69Yantai Changyu Pioneer Wine Co. Ltd. 2025 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 Counterguar Whether or not
Actual date of Actual Whether or not
related Guarantee Guarantee Collateral (if antee belong to
Guarantee object name occurrence (date of guarantee Guarantee Period complete
announcement about quota type have) situation (if related-party
agreement) amount implementation
guarantee quota have) guarantee
-----------
Guarantee situations between the Company and subsidiaries
Disclosure date of Whether or not
Actual Counterguar Whether or not
related Guarantee Actual date of Guarantee belong to
Guarantee object name guarantee Collateral antee Guarantee Period complete
announcement about quota occurrence type related-party
amount situation implementation
guarantee quota guarantee
Effective as of the date this
Joint Agreement is signed and will
Kilikanoon Estate Pty Ltd 2025.10.25 7000 2023.09.01 7000 liability - - remain in effect as long as the No Yes
assurance guarantor remains in business
with East West Bank
Total of the guarantee quota approved to subsidiaries during the report period (B1) 7000 Total of the actual guarantee amount for subsidiaries during the report period (B2) 7000
Total of the guarantee quota approved to subsidiaries by the end of the report period
7000 Balance of the actual guarantee for subsidiaries by the end of the report period (B4) 7000
(B3)
Guarantee situations between subsidiaries
Disclosure date of Guarantee Actual date of Actual Guarantee Counterguar Whether or not Whether or not
Guarantee object name Collateral Guarantee Period
related quota occurrence guarantee type antee complete belong to
70Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
announcement about amount situation implementation related-party
guarantee quota guarantee
Total guarantee amount of the Company（Total of above three major items）
Total of the approved guarantee quota during the report period（A1+B1+C1） 7000 Total of the actual guarantee amount during the report period（A2+B2+C2） 7000
Total of the approved guarantee quota by the end of the report period（A3+B3+C3） 7000 Balance of the actual guarantee by the end of the report period（A4+B4+C4） 7000
The proportion of actual total guarantee amount (A4+B4+C4) accounting for the
0.68%
Company’s net asset
Among :
The amount of guarantee for shareholders actual controllers and their related parties
0
（D）
The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is
0
more than 70% directly or indirectly（E）
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
No
joint payback liabilities during the report period (if have)
Explanation for violating due process to provide external guarantee (if have) No
Description of the specific situation of using compound guarantee
No.
71Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(3) Entrusting others to manage cash assets
Financial management entrustment
Applicable Inapplicable
There is no financial management entrustment during the report period. Loan entrustment
Applicable Inapplicable
There is no loan entrustment during the report period.
(4) Other important contracts
Applicable Inapplicable
16.The usage of raised funds
Applicable Inapplicable
There are no other major issues need to be explained during the report period.
17.Explanation of other significant matters
□Applicable Inapplicable
18. Major matters of the Company’s subsidiaries
□Applicable Inapplicable
72Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
VI. Changes in Shares and the Shareholders’ Situation
1. Changes in shares
(1) Changes in shares
Unit: share
Amount before this change Change (+ -) Amount after this change
Transfer other capital to share
Amount Percentage % Allot new share Distribute bonus share Others Subtotal Amount Percentage %
capital
I. Shares with trading limited condition 4861098 0.72% -2186772 -2186772 2674326 0.41%
1. State-owned holdings
2. State-owned legal person holdings
3. Other domestic holdings 4861098 0.72% -2186772 -2186772 2674326 0.41%
Among which: domestic legal person
domestic natural person 4861098 0.72% -2186772 -2186772 2674326 0.41%
4. Foreign-owned holdings
Among which: foreign legal person
foreign natural person
II. Shares without trading limited condition 666962802 99.28% -12397000 -12397000 654565802 99.59%
1. A shares 455094295 67.74% 18000 18000 455112295 69.25%
73Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
2. B shares 211868507 31.54% -12415000 -12415000 199453507 30.35%
3. Oversea listed foreign shares
4. Others
III. Total shares 671823900 100% -14583772 -14583772 657240128 100%
Cause of share change
Applicable Inapplicable
The main reason for the change in shareholding was that the Company bought back and cancelled partial restricted A shares held by the incentive
recipients as well as bought back and cancelled partial B shares during the reporting period.Approval of share change
Applicable Inapplicable
It has been deliberated and approved by the Board of Directors and Shareholders’ Meeting.Transfer ownership of changed shares
Applicable Inapplicable
The transfers have been completed.The influence of share change on the financial indicators such as basic earnings per share diluted earnings per share of the latest year and the latest
period net asset per share belonging to the Company’s common shareholders etc..Applicable Inapplicable
Other contents the Company thinks necessary or securities regulatory departments ask to make public.
74Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Applicable Inapplicable
(2) Changes in restricted shares
Applicable Inapplicable
Unit: share
Number of Number of Number of
Increased number
restricted shares at restricted shares restricted shares at Date of lifting
Shareholder name of restricted shares Reason for restricted sale
the beginning lifted during this the end of the restrictions
in this period
period period period
Released restricted shares but cannot be sold due to senior executive
Hongjiang ZHOU 209700 72000 137700
lock-in —
Released restricted shares but cannot be sold due to senior executive
Jian SUN 277500 70500 207000
lock-in —
Released restricted shares but cannot be sold due to senior executive
Jiming LI 120000 48000 72000
lock-in —
Released restricted shares but cannot be sold due to senior executive
Jianxun JIANG 120000 48000 72000
lock-in —
Released restricted shares but cannot be sold due to senior executive
Hua JIANG 127500 63500 64000 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Bin PENG 120000 48000 72000 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Jianfu PAN 70000 30000 40000 —
lock-in
Released restricted shares but cannot be sold due to senior executive
Qingkun KONG 75000 30000 45000 —
lock-in
Shilu LIU 70000 30000 40000 Restricted shares cannot be sold —
Released restricted shares but cannot be sold due to senior executive
Zhenbo XIAO 75000 30000 45000 —
lock-in
Other key employees who had been
3617851 1738225 1879626 Restricted shares cannot be sold —
granted restricted shares
Total 4882551 2208225 2674326 -- --
2. Securities issuance and listing situation
(1) Securities issuance (exclude preferred share) during report period
75Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Applicable Inapplicable
(2) Explanation of change in Company’s total shares and shareholding structure and change in Company’s assets and liability
structure
Applicable Inapplicable
(3) Current internal employee shares
Applicable Inapplicable
3. Situation for shareholders and the actual controllers
(1) The number of shareholders of the Company and the shareholdings
Unit：share
Total number of preferred
Total number of shareholders by the Total number of preferred shareholder recovering voting
Total shareholders in the
40993 end of last month before the disclosure 41524 shareholder recovering voting 0 power by the end of last month 0
report period
day of the annual report power by the end of report period before the disclosure day of the
annual report
Shareholders holding more than 5% or the top 10 shareholders holding situation
Shares held until Number of Number of Pledged /marked or frozen
Character of Percentage Changes during the
Name of Shareholders the end of the restricted unrestricted
shareholders (%) report period Share status Amount
report period shares shares
Domestic non-state legal
YANTAI CHANGYU GROUP CO. LTD. 52.56% 345473856 0 0 0 Inapplicable 0
person
Fengdi JIANG Domestic natural person 0.69% 4535834 -246066 0 0 Inapplicable 0
Hairong HU Domestic natural person 0.53% 3467035 284000 0 0 Inapplicable 0
VANGUARD TOTAL INTERNATIONAL STOCK INDEX Foreign legal person 0.52% 3446137 0 0 0 Inapplicable 0
76Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
FUND person
Social Security Fund 114 Other 0.52% 3425055 0 0 0 Inapplicable 0
HONG KONG SECURITIES CLEARING COMPANY
Foreign legal person 0.47% 3098457 421864 0 0 Inapplicable 0
LIMITED
VANGUARD EMERGING MARKETS STOCK INDEX
Foreign legal person 0.47% 3087201 0 0 0 Inapplicable 0
FUND
Bank of Communications Co. Ltd.- Qianhai Kaiyuanxianghe
Other 0.46% 3017569 3017569 0 0 Inapplicable 0
Bond-type Securities Investment Fund
Social Security Fund 413 Other 0.46% 3000060 390000 0 0 Inapplicable 0
Haitong International Securities Company Limited-Account
Foreign legal person 0.37% 2461494 0 0 0 Inapplicable 0
Client
Strategic investors or legal result of the placement of new shares to become a top 10
No
shareholders (If have) (Please refer to Note 3)
Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant
The explanation for the associated relationship and accordant action
action relationship with the other 9 listed shareholders while the relationship among the other shareholders is unknown.Explanation of the above-mentioned shareholders’ entrustment/ fiduciary voting
No
rights and waiver of the voting rights
Special explanation for the existence of a special repurchase account among the top
No
10 shareholders (If have) (Please refer to Note 3)
The top 10 shareholders with shares without trading limited condition
Number of shares without trading limited condition held until Type of share
Name of Shareholders
the end of the year Type of share Amount
YANTAI CHANGYU GROUP CO. LTD. 345473856 A 345473856
Fengdi JIANG 4535834 A 4535834
Hairong HU 3467035 A 3467035
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3446137 B 3446137
Social Security Fund 114 3425055 A 3425055
77Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
HONG KONG SECURITIES CLEARING COMPANY LIMITED 3098457 A 3098457
VANGUARD EMERGING MARKETS STOCK INDEX FUND 3087201 B 3087201
Bank of Communications Co. Ltd.- Qianhai Kaiyuanxianghe Bond-type Securities
3017569 A 3017569
Investment Fund
Social Security Fund 413 3000060 A 3000060
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 accordant Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant
action between the top 10 shareholders with unrestricted shares and the top 10 action relationship with the other 9 listed shareholders and the relationship among the other shareholders is unknown.shareholders
Explanation for the top 10 shareholders who involved in financing activities and
The top 10 shareholders do not involve in financing activities and stock trade business.stock trading business (If have) (Please refer to Note 4)
The lending of shares by the shareholders holding more than 5% top ten shareholders and top 10 shareholders of unrestricted shares in the securities
financing business
Applicable Inapplicable
The top ten shareholders and top 10 shareholders of unrestricted shares have changed from the previous period due to the leading/restitution reasons
Applicable Inapplicable
Whether or not the Company’s top 10 common shareholders and shareholders with shares without trading limited condition take agreed repurchase
trading during the report period
□Yes No
There is no agreed repurchase trading taken by the Company’s top 10 common shareholders and shareholders with shares without trading limited
condition during the report period.
78Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Situation for the controlling shareholders of the Company
Property of holding shareholders: Property of holding main body undefined
Type of holding shareholders: Legal representative
Name of controlling shareholder Legal representative Establishment date Organization code Main business
Production of wine healthy liquor distilled liquor and beverages( only
produced by subsidiaries shareholding companies and branches) sales
Yantai Changyu Group Co. Ltd. Hongjiang ZHOU 1997.04.27 913706002656458244
of the above-mentioned products cultivation of agricultural products
and export business under the scope of permission.Equity situation for the other domestic listed companies controlled or shared by the controlling shareholders during the report period No.Changes in the controlling shareholder during the report period
Applicable Inapplicable
There are no changes in the controlling shareholder during the report period.
(3) Situation for the actual controllers of the Company an its persons acting in concert
Property of actual controllers: domestic other institutions; foreign other institutions
Type of actual controllers: Legal representative
Establishment Organization
Name of actual controllers Legal representative Main business
date code
Yantai Yuhua Investment Under state permission property investment tenancy of machine and facility wholesale and retail of construction material
Hua JIANG 2004.10.28 767792947
& Development Co. Ltd. chemical products (chemical hazard products excluded) hardware and electronical products grape plantation.ILLVA Saronno Holding MARCO GIOVANNI Directly or indirectly conduct the production and distribution of food products (alcoholic products included) as well as industrial
1984.07.25－
S.p.a. FERRARI commercial financial and service activities of any other kinds through joint-stock companies and organizations.International Finance Corporation is one of the members of World Bank mainly dedicated to investment in private sectors of
developing countries while providing technical support and consultation service. The corporation is a multilateral financial
International Finance
Makhtar Diop 1956.07.25 － institution that ranks first in the world in terms of providing capital stock and loans to developing countries. Its purpose is to
Corporation
promote sustainable investments of private sectors of developing countries in order to alleviate poverty and improve people’s
life.
79Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Operating management of state-owned property right (stock right) authorized by State-owned Assets Supervision and
Administration Commission of Yantai Municipal Government; Financing investment and operating management of government
projects such as strategic investment and industrial investment and so on; Capital operation (including acquisition reintegration
and transfer etc) of state-owned property right and state-owned stock right within the scope of authorization; Venture capital
investment business; Agency of venture capital investment business of other venture investment enterprises or individuals;
Yantai Guofeng Participation in the establishment of venture capital investment enterprises and venture capital investment management
Investment Holdings Hao WANG 2009.02.12 684822338 consultant institutions; Investment and financing service and consulting business; Investment and financing consultant business;
Group Co. Ltd. Other business authorized by State-owned Assets Supervision and Administration Commission of Yantai Municipal
Government; wholesale and retail of non-ferrous metal mineral products gold (spot good) silver (spot good) chemical products
(excluding dangerous goods) battery materials (excluding dangerous chemicals); import and export of goods and technologies.(The business scope does not include national pre-approval projects and projects restricted by national industrial policies;
projects that are subject to approval according to law can only carry out business activities after approval by relevant
departments).Yantai Yuhua Investment & Development Co. Ltd. did not control the equity of other domestic and foreign listed companies except the
Equity situation for the other domestic listed companies controlled
Company during the reporting period; It is not clear that other actual controllers control the equity of other domestic and foreign listed
by the actual controller during the report period
companies other than the Company during the reporting period.Changes of the actual controllers during the report period
Applicable Inapplicable
There are no changes in actual controllers during the report period.
80Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Introduction for property right and control relations between the Company and its actual controllers
Actual controller controls the Company through a trust or other asset management ways
Applicable Inapplicable
81Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(4) The company’s controlling shareholder or the largest shareholder and its concerted action
person’s cumulative pledged shares account for 80% of the company’s shares held by them
Applicable Inapplicable
(5) Other institutional shareholders holding more than 10% shares
Applicable Inapplicable
(6) Shares reduction situations of holding shareholders actual controllers restructuring side
and other commitment subjects
Applicable Inapplicable
4. The specific implementation of share repurchase during the reporting period
Implementation progress of share repurchase
Applicable Inapplicable
Proposed The proportion of the
Number of bought quantity bought back
Plan The proportion of Purpose Quantity
shares to be back Proposed buyback to the underlying
disclosure the total share of bought back
bought back amount period shares involved in the
time capital buyback (shares)
(shares) (CNY’000 equity incentive plan
0) (if any)
No more than 12
No less than months from the
Not more
10 million date of approval
than
2025.04.18 shares no 1.49%-2.23% of the share Cancelled 12430000 0%
CNY100m
more than 15 buyback plan by
illion
million shares the Shareholders’
Meeting
2025.07.26 2153772 0.33% 3155 — Cancelled 2153772 30%
Implementation progress of reducing share repurchased by centralized bidding
□Applicable Inapplicable
5. Related situation of preferred shares
Applicable Inapplicable
There are no preferred shares during the report period.
82Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
VII. Related Situation of Bonds
Applicable Inapplicable
VIII. Financial Report
1. Audit Report
Type of audit opinion Standard unqualified audit opinion
Date signed on audit report April 16 2026
Audit agency name KPMG Huazhen LLP (Limited LiabilityPartnership)
Audit report No. KPMG Huazhen ShenZi No. 2605381
Certified public accountant’s name Jia WANG Zhichao LIU
83Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Co. Ltd.ENGLISH TRANSLATION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2025 TO 31 DECEMBER 2025
IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH
TRANSLATION THE CHINESE VERSION WILL PREVAIL
84Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
AUDITOR’S REPORT
KPMG Huazhen Shen Zi No. 2605381
All Shareholders of Yantai Changyu Pioneer Wine Company Limited:
Opinion
We have audited the accompanying financial statements of Yantai Changyu Pioneer Wine
Company Limited (“Yantai Changyu”) which comprise the consolidated balance sheet and
company balance sheet as at 31 December 2025 the consolidated income statement and
company income statement the consolidated cash flow statement and company cash flow
statement the consolidated statement of changes in shareholders’ equity and company
statement of changes in shareholders’ equity for the year then ended and notes to the
financial statements.In our opinion the accompanying financial statements present fairly in all material respects
the consolidated financial position and company financial position of Yantai Changyu as at 31
December 2025 and of its consolidated financial performance and company financial
performance and its consolidated cash flows and company cash flows for the year then ended
in accordance with Accounting Standards for Business Enterprises issued by the Ministry of
Finance of the People’s Republic of China.Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.We are independent of Yantai Changyu in accordance with the Independence Standards for
Chinese Certified Public Accountants No. 1 – Independence Requirements for Audit and
Review Engagements as applicable to audits of financial statements of public interest entities
and the China Code of Ethics for Certified Public Accountants (“the Code”) and we have
fulfilled our other ethical responsibilities in accordance with the Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
85Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2605381
Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most
significance in our audit of the financial statements for the year ended 31 December 2025.These matters were addressed in the context of our audit of the financial statements as a
whole and in forming our opinion thereon and we do not provide a separate opinion on these
matters.Recognition of Sales Revenue from DistributorsRefer to the accounting policies set out in the notes to the financial statements “III.Significant accounting policies and accounting estimates” 25 and “V. Notes to theconsolidated financial statements” 37.The Key Audit Matters How the Matter was Addressed in OurAudit
The principal activities of Yantai Changyu and Our audit procedures to evaluate revenue
its subsidiaries (hereinafter referred to as recognition of sales revenue from
“Yantai Changyu Group”) include manufacture distributors included the following:
and sales of wine brandy and sparkling wine.Understand and evaluate the
The revenue of Yantai Changyu Group is mainly Management’s design and operation
derived from sales of distributors. All effectiveness of key internal controls
distributor transaction terms adopt the unified related to distributor sales revenue
transaction terms formulated by Yantai recognition;
Changyu Group.Select sales contracts signed between
Based on the contractual agreement and the Yantai Changyu and its distributors
business arrangement Yantai Changyu sells examine the key clauses related to the
products to distributors and the transfer of transfer of control over goods and
product ownership is completed and the evaluate whether Yantai Changyu’s
revenue is recognised when the goods are accounting policies in respect of
delivered to distributors and signed for revenue recognition comply with the
acceptance. requirements of China Accounting
As revenue is one of the key performance Standards (“CAS”);
indicators of Yantai Changyu Group there is a
risk that management may recognise revenue
earlier or later in order to meet specific
performance targets or expectations therefore
the risk of cut-off misstatement arising from
distributors’ sales revenue is identified as a key
audit matter.
86Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2605381
Key Audit Matters (continued)
Recognition of Sales Revenue from Distributors (continued)Refer to the accounting policies set out in the notes to the financial statements “III.Significant accounting policies and accounting estimates” 25 and “V. Notes to theconsolidated financial statements” 37.The Key Audit Matters How the Matter was Addressed in OurAudit
Agree the revenue per the financial
system with the order and shipping
information recorded in the business
system for consistency identify and
investigate abnormal transaction records
(if any); and on a sampling basis examine
the order and shipping information in the
business system against original
documents such as sales orders and
signed delivery receipts for consistency;
On a sampling basis reconcile the sales
transaction before and after balance sheet
date to relevant supporting files such as
relevant orders signed delivery notes
etc. to evaluate whether revenue is
recognised in appropriate accounting
period;
On a sampling basis perform
confirmation procedures on the balance of
accounts receivable as at the balance
sheet date and the sales transaction
amounts during the current year;
Check the sales record after the balance
sheet date to identify significant sales
returns and check relevant supporting
files (If applicable) in order to evaluate
whether relevant revenue is recorded in
the appropriate accounting period;
Select revenue accounting entries that
meet specific risk criteria and check
related supporting documents.
87Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2605381
Other Information
Management of Yantai Changyu is responsible for the other information. The other
information comprises all the information included in the 2025 annual report other than the
financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.If based on the work we have performed we conclude that there is a material misstatement
of this other information we are required to report that fact. We have nothing to report in this
regard.Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the Accounting Standards for Business Enterprises and for
the design implementation and maintenance of such internal control necessary to enable that
the financial statements are free from material misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing Yantai
Changyu’s ability to continue as a going concern disclosing as applicable matters related to
going concern and using the going concern basis of accounting unless management either
intends to liquidate Yantai Changyu or to cease operations or has no realistic alternative but
to do so.Those charged with governance are responsible for overseeing Yantai Changyu’s financial
reporting process.Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement whether due to fraud or error and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with CSAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if individually or in the aggregate they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.
88Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2605381
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
As part of an audit in accordance with CSAs we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements
whether due to fraud or error design and perform audit procedures responsive to those
risks and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error as fraud may involve collusion forgery
intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty
exists related to events or conditions that may cast significant doubt on Yantai
Changyu’s ability to continue as a going concern. If we conclude that a material
uncertainty exists we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or if such disclosures are inadequate to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However future events or conditions may cause Yantai
Changyu to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements
including the disclosures and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express our audit opinion on the
financial statements. We are responsible for the direction supervision and
performance of the Group audit. We remain solely responsible for our audit opinion.
89Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2605381
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
We communicate with those charged with governance regarding among other matters the
planned scope and timing of the audit and significant audit findings including any significant
deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence
and where applicable related safeguards.From the matters communicated with those charged with governance we determine those
matters that were of most significance in the audit of the financial statements of the year and
are therefore the key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when in extremely rare
circumstances we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.KPMG Huazhen LLP Certified Public Accountants Registered
(Stamp) in the People’s Republic of China
Wang Jia (Engagement Partner)
(Signature and stamp)
Beijing China Liu Zhichao
(Signature and stamp)
16 April 2026
90Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated balance sheet
as at 31 December 2025
(Expressed in Renminbi Yuan)
Note 31 December 31 December2025 2024
Assets
Current assets
Cash at bank and on hand V.1 1890611804 1797848130
Bills receivable V.2 102342 1036243
Accounts receivable V.3 264932724 270829601
Receivables under financing V.4 228073841 230960211
Prepayments V.5 54011809 60631575
Other receivables V.6 127713309 264598394
Inventories V.7 2836077209 2904070556
Other current assets V.8 74160936 80383241
Total current assets 5475683974 5610357951
Non-current assets
Long-term equity investments V.9 26656197 34864748
Investment properties V.10 19900228 21960451
Fixed assets V.11 5308778632 5551671795
Construction in progress V.12 4313088 10177372
Bearer biological assets V.13 60098714 66483964
Right-of-use assets V.14 55252509 71761262
Intangible assets V.15 512930637 527706383
Goodwill V.16 88036557 101149082
Long-term deferred expenses V.17 283227056 298793702
Deferred tax assets V.18 215680654 221993099
Other non-current assets V.19 43735 3554409
Total non-current assets 6574918007 6910116267
Total assets 12050601981 12520474218
91Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated balance sheet
as at 31 December 2025 (continued)
(Expressed in Renminbi Yuan)
Note 31 December 31 December2025 2024
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V.20 240674788 216140346
Accounts payable V.21 321932168 417510439
Contract liabilities V.22 135067463 128090353
Employee benefits payable V.23 162525617 166704917
Taxes payable V.24 158558934 189147054
Other payables V.25 332855775 398149521
Other current liabilities V.26 27193862 40764242
Non-current liabilities due within 75440910 79949769
one year V.27
Total current liabilities 1454249517 1636456641
Non-current liabilities
Long-term loans V.28 52374840 50637203
Lease liabilities V.29 19437830 27542829
Deferred income V.30 19386932 25938817
Deferred tax liabilities V.18 6613894 7344165
Total non-current liabilities 97813496 111463014
Total liabilities 1552063013 1747919655
92Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated balance sheet
as at 31 December 2025 (continued)
(Expressed in Renminbi Yuan)
Note 31 December 31 December2025 2024
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.31 657240128 671823900
Capital reserve V.32 364048502 482143547
Less：Treasury stock V.33 37880941 70704426
Other comprehensive income V.34 (16329710) (39714972)
Surplus reserve V.35 342732000 342732000
Retained earnings V.36 9037437598 9232928370
Total equity attributable to shareholders of 10347247577 10619208419
the Company
Non-controlling interests 151291391 153346144
Total shareholders’ equity 10498538968 10772554563
Total liabilities and shareholders’ equity 12050601981 12520474218
These financial statements were approved by the Board of Directors of the Company on
16April 2026. .
Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
93Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company balance sheet
as at 31 December 2025
(Expressed in Renminbi Yuan)
Note 31 December 31 December2025 2024
Assets
Current assets
Cash at bank and on hand 1068117647 876557848
Accounts receivable - 226796
Receivables under financing XVII.1 49858915 13110297
Prepayments - 5526029
Other receivables XVII.2 706617690 952762563
Inventories 368660076 396334804
Other current assets 1761013 -
Total current assets 2195015341 2244518337
Non-current assets
Long-term equity investments XVII.3 7639851962 7689232919
Investment properties 19900228 21960451
Fixed assets 138604795 176158046
Bearer biological assets 16972242 20075933
Right-of-use assets 6638093 6985971
Intangible assets 67060514 69806357
Deferred tax assets 3339186 2624459
Other non-current assets 1812430000 1864430003
Total non-current assets 9704797020 9851274139
Total assets 11899812361 12095792476
94Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company balance sheet
as at 31 December 2025(continued)
(Expressed in Renminbi Yuan)
Note 31 December 31 December2025 2024
Liabilities and shareholders’ equity
Current liabilities
Short-term loans 50000000 50000000
Accounts payable 35959493 92990317
Employee benefits payable 64506520 68033360
Taxes payable 3040948 2010276
Other payables 565391567 584915573
Non-current liabilities due within 1636113 2199212
one year
Total current liabilities 720534641 800148738
Non-current liabilities
Lease liabilities 5168920 5115806
Deferred income 177355 1398701
Total non-current liabilities 5346275 6514507
Total liabilities 725880916 806663245
95Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company balance sheet
as at 31 December 2025 (continued)
(Expressed in Renminbi Yuan)
Note 31 December 31 December2025 2024
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital 657240128 671823900
Capital reserve 401287028 519382073
Less：Treasury stock 37880941 70704426
Surplus reserve 342732000 342732000
Retained earnings 9810553230 9825895684
Total shareholders’ equity 11173931445 11289129231
Total liabilities and shareholders’ equity 11899812361 12095792476
These financial statements were approved by the Board of Directors of the Company on 16
April 2026. .Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
96Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated income statement
for the year ended 31 December 2025
(Expressed in Renminbi Yuan)
Note 2025 2024
I. Operating income V.37 2988667522 3277278347
Less: Operating costs V.37 1329825001 1392602399
Taxes and surcharges V.38 261069400 273762629
Selling and distribution
expenses V.39 946328561 1012980420
General and administrative
expenses V.40 300804447 313911881
Research and development
expenses 21442819 19538243
Financial expenses V.41 (15346946) 12836073
Including: Interest expenses 18097903 34261730
Interest income 19698919 34643667
Add: Other income V.42 35137675 52613910
Investment losses V.43 (933716) (4420872)
Including: Losses from
investment
associates and in (1975116) (4420872)
joint ventures
Credit (losses) / reversal V.44 (19176723) 1818835
Impairment losses V.45 (8025330) (7465500)
Gain from disposal of assets V.46 307134 132116926
97Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated income statement
for the year ended 31 December 2025 (continued)
(Expressed in Renminbi Yuan)
Note 2025 2024
II. Operating profit 151853280 426310001
Add: Non-operating income V.47 7706024 4977930
Less: Non-operating expenses V.47 2954136 3733074
III. Profit before income tax 156605168 427554857
Less: Income tax expenses V.48 81760047 113227572
IV. Net profit 74845121 314327285
(1) Net profit classified by
continuity of operations:
1. Net profit from continuing
operations 74845121 314327285
2. Net profit from discontinued - -
operations
(2) Net profit classified by
ownership:
1. Net profit attributable to
shareholders of the 71291303 305210999
Company
2. Non-controlling net
interests 3553818 9116286
V. Other comprehensive income net of
tax 25903830 (27197923)
(1) Other comprehensive income
(net of tax) attributable to 23385262 (24930295)
shareholders of the Company
Translation differences arising
from translation of foreign 23385262 (24930295)
currency financial statements
(2) Other comprehensive income
(net of tax) attributable to 2518568 (2267628)
non-controlling interests
98Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated income statement
for the year ended 31 December 2025 (continued)
(Expressed in Renminbi Yuan)
Note 2025 2024
VI. Total comprehensive income for the
year 100748951 287129362
(1) Attributable to shareholders of
the Company 94676565 280280704
(2) Attributable to non-controlling
interests 6072386 6848658
VII. Earnings per share:
(1) Basic earnings per share V.49 0.11 0.45
(2) Diluted earnings per share V.49 0.11 0.45
These financial statements were approved by the Board of Directors of the Company on 16
April 2026. .Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
99Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company income statement
for the year ended 31 December 2025
(Expressed in Renminbi Yuan)
Note 2025 2024
I. Operating income XVII.4 485013763 562078771
Less: Operating cost XVII.4 421638339 496879337
Taxes and surcharges 16168537 18450000
General and administrative
expenses 63588199 68658997
Research and development
expenses 2096585 878405
Financial net income (11149070) (13673283)
Including: Interest expenses 2940013 2019519
Interest income 16443214 21038636
Add: Other income 3485305 954175
Investment income XVII.5 314258098 368167007
Credit Impairment losses (8166363) (245)
Asset Impairment losses (50646755) (6014534)
(Losses) / proceeds from the
disposal of assets (417577) 135896203
II. Operating profit 251183881 489887921
Add: Non-operating income 366585 1246114
Less: Non-operating expenses 825571 2409239
100Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company income statement
for the year ended 31 December 2025 (continued)
(Expressed in Renminbi Yuan)
Note 2025 2024
III. Profit before income tax 250724895 488724796
Less: Income tax expenses (714726) 3458480
IV. Net profit 251439621 485266316
(i) Net profit from continuing
operations 251439621 485266316
(ii) Net profit from discontinued
operations - -
V. Other comprehensive income net of
tax - -
VI. Total comprehensive income for the
year 251439621 485266316
These financial statements were approved by the Board of Directors of the Company on 16
April 2026. .Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
101Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated cash flow statement
for the year ended 31 December 2025
(Expressed in Renminbi Yuan)
Note 2025 2024
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 2841240624 3537113866
Refund of taxes 43192529 55276632
Proceeds from other operating
activities V.50(1) 50297960 81036973
Sub-total of cash inflows 2934731113 3673427471
Payment for goods and services 1034034707 1432909914
Payment to and for employees 422285265 497180417
Payment of various taxes 581651375 704434463
Payment for other operating activities V.50(1) 540936307 641161610
Sub-total of cash outflows 2578907654 3275686404
Net cash flows from operating
activities V.51(1) 355823459 397741067
II. Cash flows from investing activities:
Proceeds from disposal of
investments V.50(2) 93200000 464200000
Investment returns received 2169162 4936198
Net proceeds from disposal of fixed
assets intangible assets and other 146329929 42303732
long-term assets
Net proceeds from disposal of
subsidiaries 25831272 -
Sub-total of cash inflows 267530363 511439930
Payment for acquisition of fixed
assets intangible assets and other 31471276 94561357
long-term assets
Payment for acquisition of
investments 60200000 289650000
Sub-total of cash outflows 91671276 384211357
Net cash flows from investing
activities 175859087 127228573
102Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated cash flow statement
for the year ended 31 December 2025(continued)
(Expressed in Renminbi Yuan)
Note 2025 2024
III. Cash flows from financing activities:
Proceeds from borrowings 527318069 507959260
Sub-total of cash inflows 527318069 507959260
Repayments of borrowings 492835580 670128889
Payment for dividends profit
distributions or interest 293007117 377462001
Payment for other financing activities V.50(3) 153151134 227313486
Sub-total of cash outflows 938993831 1274904376
Net cash flows from financing
activities (411675762) (766945116)
IV. Effect of foreign exchange rate
changes on cash and cash 1393754 (3452725)
equivalents
V. Net increase /(decrease) in cash and
cash equivalents V.51(1) 121400538 (245428201)
Add: Cash and cash equivalents at
the beginning of the year 1717727551 1963155752
VI. Cash and cash equivalents at the end
of the year V.51(1) 1839128089 1717727551
These financial statements were approved by the Board of Directors of the Company on 16
April 2026. .Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
103Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company cash flow statement
for the year ended 31 December 2025
(Expressed in Renminbi Yuan)
Note 2025 2024
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 527872771 669302405
Proceeds from other operating
activities 6980197 14799484
Sub-total of cash inflows 534852968 684101889
Payment for goods and services 473572836 452049677
Payment to and for employees 47267132 55724885
Payment of various taxes 25987004 41659134
Payment for other operating activities 10097207 20393900
Sub-total of cash outflows 556924179 569827596
Net cash flows from operating
activities (22071211) 114274293
II. Cash flows from investing activities:
Proceeds from disposal of
investments 93200000 464200000
Investment returns received 433300050 243103205
Net proceeds from disposal of fixed
assets intangible assets and other 136511028 1190693
long-term assets
Proceeds from borrowings to
subsidiaries 54000000 140000000
Sub-total of cash inflows 717011078 848493898
Payment for acquisition of fixed
assets intangible assets and other 2623291 5532306
long-term assets
Payment for acquisition of
investments 60200000 288650000
Net payment for acquisition of
subsidiaries and other business - 65506916
units
Cash paid to subsidiaries 2000000 205200000
Sub-total of cash outflows 64823291 564889222
Net cash flows from investing
activities 652187787 283604676
104Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company cash flow statement
for the year ended 31 December 2025 (continued)
(Expressed in Renminbi Yuan)
Note 2025 2024
III. Cash flows from financing activities:
Proceeds from borrowings 50000000 50000000
Sub-total of cash inflows 50000000 50000000
Repayments of borrowings 50000000 100000000
Payment for dividends or interest 269722088 347931466
Payment for other financing activities 135834689 190324198
Sub-total of cash outflows 455556777 638255664
Net cash flows from financing
activities (405556777) (588255664)
IV. Effect of foreign exchange rate
changes on cash and cash - -
equivalents
V. Net increase /(decrease) in cash and
cash equivalents 224559799 (190376695)
Add: Cash and cash equivalents at
the beginning of the year 797907849 988284544
VI. Cash and cash equivalents at the end
of the year 1022467648 797907849
These financial statements were approved by the Board of Directors of the Company on 16
April 2026. .Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
105Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2025
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Note Less:Treasury Other
Total
Share capital Capital reserve comprehensive Surplus reserve Retained
Non-controlling shareholders’
stock earnings Sub-total interestsincome equity
I. Balance at the beginning of the year 671823900 482143547 (70704426) (39714972) 342732000 9232928370 10619208419 153346144 10772554563
II. Changes in equity during the year
1. Total comprehensive income - - - 23385262 - 71291303 94676565 6072386 100748951
2. Shareholders’ contributions and
decrease of capital
(1). Effects of restricted share
incentive plan V.31 (2153772) (30669713) 32823485 - - - - - -
(2). Effects of share repurchased V.32 (12430000) (87425332) - - - - (99855332) - (99855332)
3. Appropriation of profits
(1).Distributions to shareholders V.36 - - - - - (266782075) (266782075) (1292872) (268074947)
(2).The impact of subsidiary
deregistration and liquidation - - - - - - - (6834267) (6834267)
III. Balance at the end of the year 657240128 364048502 (37880941) (16329710) 342732000 9037437598 10347247577 151291391 10498538968
These financial statements were approved by the Board of Directors of the Company on 16 April 2026. .Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge of The head of the accounting
accounting affairs department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
106Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated statement of changes in shareholders’ equity (continued)
for the year ended 31 December 2024
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Note Less:Treasury Other
Total
Share capital Capital reserve comprehensive Surplus reserve Retained
Non-controlling shareholders’
stock earnings Sub-total interestsincome equity
I. Balance at the beginning of the year 692249559 651086707 (103411919) (14784677) 342732000 9273629318 10841500988 149024807 10990525795
II. Changes in equity during the year
1. Total comprehensive income - - - (24930295) - 305210999 280280704 6848658 287129362
2. Shareholders’ contributions and
decrease of capital
(1). Effects of restricted share
incentive plan V.31 (425666) (10077952) 32707493 - - - 22203875 - 22203875
(2). Acquisition of
non-controlling interests VIII.2 - (780883) - - - - (780883) (1102655) (1883538)
(3). Effects of share repurchased V.32 (19999993) (158084325) - - - - (178084318) - (178084318)
3. Appropriation of profits
Distributions to shareholders V.36 - - - - - (345911947) (345911947) (1424666) (347336613)
III. Balance at the end of the year 671823900 482143547 (70704426) (39714972) 342732000 9232928370 10619208419 153346144 10772554563
These financial statements were approved by the Board of Directors of the Company on 16 April 2026. .Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge of The head of the accounting
accounting affairs department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
107Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company statement of changes in shareholders’ equity
for the year ended 31 December 2025
(Expressed in Renminbi Yuan)
Total
Note Share capital Capital reserve Less:Treasurystock Surplus reserve
Retained
earnings shareholders’equity
I. Balance at the beginning
of the year 671823900 519382073 (70704426) 342732000 9825895684 11289129231
II. Changes in equity during
the year
1. Total comprehensive
income - - - - 251439621 251439621
2. Contributions by
owners
(1) Effec
ts of restricted
share incentive (2153772) (30669713) 32823485 - - -
plan
(2) Effec
ts of share (12430000) (87425332) - - - (99855332)
repurchased
3. Appropriation of
profits
Distributions to
shareholders - - - - (266782075) (266782075)
III. Balance at the end of the
year 657240128 401287028 (37880941) 342732000 9810553230 11173931445
These financial statements were approved by the Board of Directors of the Company on 16
April 2026.Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
108Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company statement of changes in shareholders’ equity
for the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
Note Share capital Capital reserve Less:Treasury Surplus reserve Retained
Total
stock earnings shareholders’equity
I. Balance at the beginning
of the year 692249559 687544350 (103411919) 342732000 9686541315 11305655305
II. Changes in equity during
the year
1. Total comprehensive
income - - - - 485266316 485266316
2. Contributions by
owners
(1) Effec (425666) (10077952) 32707493 - - 22203875
ts of restricted
share incentive
plan
(2) Effec
ts of share (19999993) (158084325) - - - (178084318)
repurchased
3. Appropriation of
profits
Distributions to
shareholders - - - - (345911947) (345911947)
III. Balance at the end of the
year 671823900 519382073 (70704426) 342732000 9825895684 11289129231
These financial statements were approved by the Board of Directors of the Company on 16
April 2026.Zhou Hongjiang Guo Cuimei Guo Cuimei (Company stamp)
Legal Representative The person in-charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
109Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Notes to the financial statements
(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
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 a reorganisation carried out by Yantai Changyu
Group Co. Ltd. (“Changyu Group”) in which Changyu Group Company injected certain
assets and liabilities in relation to the wine brandy and sparkling wine production and sales
businesses to the Company. The Company and its subsidiaries (the “Group”) are principally
engaged in the production and sales of wine brandy sparkling wine grape growing and
acquisition as well as travel resource development etc.. Registration place of the Company
is Yantai Shandong. Headquarter of the Company is located at No. 56 Da Ma Lu Zhifu
District Yantai Shandong PRC.As at 31 December 2025 the total shares issued by the Company amounts to 657240128
shares. Please refer to Note V. 31 in detail.The holding company of the Group is Changyu Group Company which is jointly controlled by
Yantai GuoFeng Investment Holding Ltd. ILLVA SARONNO HOLDING SPA International
Finance Corporation and Yantai Yuhua Investment and Development Company Limited.The financial statements have been authorised by the board of directors on 16 April 2026.According to the Company’s articles of association the financial statements will be reviewed
by shareholders on the shareholder’s meeting.For consolidation scope of the year please refer to Note VIII “Equity in other entities” in detail.II. Basis of preparation
The financial statements have been prepared on the going concern basis.III. Significant accounting policies and accounting estimates
1 Statement of compliance
The financial statements have been prepared in accordance with the requirements of
Accounting Standards for Business Enterprises or referred to as China Accounting Standards
(“CAS”) issued by the MOF. These financial statements present truly and completely the
consolidated financial position and financial position of the Company as at 31 December
2025 and the consolidated financial performance and financial performance and the
consolidated cash flows and cash flows of the Company for the year then ended.These financial statements also comply with the disclosure requirements of “Regulation onthe Preparation of Information Disclosures by Companies Issuing Securities No. 15: GeneralRequirements for Financial Reports” as revised by the China Securities Regulatory
Commission (“CSRC”) in 2023.
110Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until the
ultimate realisation of cash or cash equivalents as a normal operating cycle. The operating
cycle of the Company is 12 months.
4 Functional currency
Renminbi (“RMB”) is the currency of the primary economic environment in which the
Company and its domestic subsidiaries operate. Therefore the Company and its domestic
subsidiaries choose RMB as their functional currency. Overseas subsidiaries of the
Company adopt Euro Chilean Peso and Australian Dollar as their functional currencies on the
basis of the primary economic environment in which they operate. The Company adopts
RMB to prepare its financial statements. The foreign currency financial statements of
overseas subsidiaries have been translated based on the accounting policy set out in Note
III.9 in preparing these financial statements.
5 Method used to determine the materiality threshold and the basis for selection
Item Materiality threshold
Amount of the individual other
Significant other payables/accounts payable with ageing payables/accounts payable with
of more than one year ageing of more than 1 yearexceeds 0.5% of the Group’s
total liabilities
Carrying amount of the individual
Significant construction projects in progress construction in progress exceeds0.5% of the Group’s total
non-current assets
Carrying amount of net assets
attributable to non-controlling
Significant non-wholly-owned subsidiaries shareholders of thenon-wholly-owned subsidiaries
exceeds 0.5% of the Group’s net
assets
The carrying amount of long-term
equity investments of an
Significant joint arrangements or associates individual joint arrangement or an
associate exceeds 0.5% of the
Group’s net assets
Amount of the individual cash
Significant cash flows from investing activities flow exceeds exceeds 0.5% of
the Group’s total assets
6 Accounting treatments for business combinations involving entities under common control
and not under common control
A transaction constitutes a business combination when the Group obtains control of one or
more entities (or a group of assets or net assets). Business combination is classified as
111Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
either business combinations involving enterprises under common control or business
combinations not involving enterprises under common control.For a transaction not involving enterprises under common control the acquirer determines
whether acquired set of assets constitute a business. The Group may elect to apply the
simplified assessment method the concentration test to determine whether an acquired set
of assets is not a business. If the concentration test is met and the set of assets is
determined not to be a business no further assessment is needed. If the concentration test
is not met the Group shall perform the assessment according to the guidance on the
determination of a business.When the set of assets the group acquired does not constitute a business acquisition costs
should be allocated to each identifiable assets and liabilities at their acquisitiondate fair
values. It is not required to apply the accounting of business combination described as
below.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination in
which all of the combining entities are ultimately controlled by the same party or parties both
before and after the business combination and that control is not transitory. The assets
acquired and liabilities assumed are measured based on their carrying amounts in the
consolidated financial statements of the ultimate controlling party at the combination date.The difference between the carrying amount shares of the net assets acquired and the
consideration paid for the combination (or the total par value of shares issued) is adjusted
against share premium in the capital reserve with any excess adjusted against the surplus
reserves and retained earnings sequentially. Any costs directly attributable to the
combination are recognised in profit or loss when incurred. The combination date is the date
on which one combining entity obtains control of other combining entities.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining entities are not ultimately controlled by the same
party or parties both before and after the business combination. Where (1) the aggregate of
the acquisition-date fair value of assets transferred (including the acquirer’s previously held
equity interest in the acquiree) liabilities incurred or assumed and equity securities issued by
the acquirer in exchange for control of the acquiree exceeds (2) the acquirer’s interest in the
acquisition-date fair value of the acquiree’s identifiable net assets after considering the
impact of relevant deferred income tax the difference is recognised as goodwill (see Note
III.19). If (1) is less than (2) the difference is recognised in profit or loss for the current
period. Other acquisition-related costs are expensed when incurred. The acquiree’s
identifiable asset liabilities and contingent liabilities if the recognition criteria are met are
recognised by the Group at their acquisition-date fair value. The acquisition date is the date
on which the acquirer obtains control of the acquiree.For a business combination involving entities not under common control and achieved in
stages the Group remeasures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognises any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. In addition any amount recognised in other comprehensive income that may be
reclassified to profit or loss in prior reporting periods relating to the previously-held equity
interest and any other changes in the owners’ equity under equity accounting are transferred
112Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
to investment income in the period in which the acquisition occurs (see Note III.12(2)(b)). If
equity interests of the acquiree held before acquisition-date were equity instrument
investments measured at fair value through other comprehensive income other
comprehensive income recognised shall be moved to retained earnings on acquisition-date.
7 Criteria of control and preparation of consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidated
financial statements comprise the Company and its subsidiaries. Control exists when the
investor has all of following: power over the investee; exposure or rights to variable returns
from its involvement with the investee and has the ability to affect those returns through its
power over the investee. When assessing whether the Group has power only substantive
rights (held by the Group and other parties) are considered. The financial position financial
performance and cash flows of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.Non-controlling interests are presented separately in the consolidated balance sheet within
shareholders’ equity. Net profit or loss attributable to non-controlling shareholders is
presented separately in the consolidated income statement below the net profit line item.Total comprehensive income attributable to non-controlling shareholders is presented
separately in the consolidated income statement below the total comprehensive income line
item.When the amount of loss for the current period attributable to the non-controlling shareholders
of a subsidiary exceeds the non-controlling shareholders’ share of the opening owners’ equity
of the subsidiary the excess is still allocated against the non-controlling interests.When the accounting period or accounting policies of a subsidiary are different from those of
the Company the Company makes necessary adjustments to the financial statements of the
subsidiary based on the Company’s own accounting period or accounting policies.Intra-group balances and transactions and any unrealised profit or loss arising from
intra-group transactions are eliminated when preparing the consolidated financial statements.Unrealised losses resulting from intra-group transactions are eliminated in the same way as
unrealised gains unless they represent impairment losses that are recognised in the financial
statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period through a business combination
involving entities under common control the financial statements of the subsidiary are
included in the consolidated financial statements based on the carrying amounts of the assets
and liabilities of the subsidiary in the financial statements of the ultimate controlling party as if
the combination had occurred at the date that the ultimate controlling party first obtained
control. The opening balances and the comparative figures of the consolidated financial
statements are also restated.Where a subsidiary was acquired during the reporting period through a business combination
involving entities not under common control the identifiable assets and liabilities of the
acquired subsidiaries are included in the scope of consolidation from the date that control
commences based on the fair value of those identifiable assets and liabilities at the
acquisition date.
(3) Disposal of subsidiaries
113Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
When the Group loses control over a subsidiary any resulting disposal gains or losses are
recognised as investment income for the current period. The remaining equity investment is
re-measured at its fair value at the date when control is lost any resulting gains or losses are
also recognised as investment income for the current period.When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- 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 (see Note III.7(4)).If each of the multiple transactions forms part of a bundled transaction which eventually
results in the loss of control in the subsidiary these multiple transactions are accounted for as
a single transaction. In the consolidated financial statements the difference between the
consideration received and the corresponding proportion of the subsidiary’s net assets
(calculated continuously from the acquisition date) in each transaction prior to the loss of
control shall be recognised in other comprehensive income and transferred to profit or loss
when the parent eventually loses control of the subsidiary.
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without a change in control
the difference between the proportion interests of the subsidiary’s net assets being acquired
or disposed and the amount of the consideration paid or received is adjusted to the capital
reserve (share premium) in the consolidated balance sheet with any excess adjusted to the
surplus reserves and retained earnings sequentially.
8 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be readily withdraw on
demand and short-term highly liquid investments that are readily convertible into known
amounts of cash and are subject to an insignificant risk of change in value.
9 Foreign currency transactions and translation of foreign currency financial statements
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.
114Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognised in profit or loss unless they arise from the re-translation of the principal and
interest of specific borrowings for the acquisition and construction of qualifying assets (see
Note III. 16). Non-monetary items that are measured at historical cost in foreign currencies
are translated to Renminbi using the exchange rate at the transaction date.In translating the financial statements of a foreign operation assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items excluding retained earnings and the translation differences in other
comprehensive income are translated to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses in the income statement are translated to
Renminbi at the spot exchange rates at the transaction dates. The resulting translation
differences are recognised in other comprehensive income. The translation differences
accumulated in other comprehensive income with respect to a foreign operation are
transferred to profit or loss in the period when the foreign operation is disposed.
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 (see Note III.12)
receivables payables and borrowings and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.A financial assets and financial liabilities is measured initially at fair value. For financial
assets and financial liabilities at fair value through profit or loss any related directly
attributable transaction costs are charged to profit or loss; for other categories of financial
assets and financial liabilities any related directly attributable transaction costs are included
in their initial costs. A trade receivable without significant financing component or practical
expedient applied for one year or less contracts is initially measured at the transaction price
in accordance with Note III.25.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which
a financial asset is managed and its contractual cash flow characteristics. On initial
recognition a financial asset is classified as measured at amortised cost at fair value
through other comprehensive income (“FVOCI”) or at fair value through profit or loss
(“FVTPL”).Financial assets are not reclassified subsequent to their initial recognition unless the
Group changes its business model for managing financial assets in which case all
affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model.
115Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
A financial asset is measured at amortised cost if it meets both of the following
conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.A debt investment is measured at FVOCI if it meets both of the following conditions and
is not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.On initial recognition of an equity investment that is not held for trading the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an investment-by-investment basis.The instrument meets the definition of equity from the perspective of the issuer.All financial assets not classified as measured at amortised cost or FVOCI as described
above are measured at FVTPL. On initial recognition the Group may irrevocably
designate a financial asset that otherwise meets the requirements to be measured at
amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces
an accounting mismatch that would otherwise arise.The business model refers to how the Group manages its financial assets in order to
generate cash flows. That is the Group’s business model determines whether cash
flows will result from collecting contractual cash flows selling financial assets or both.The Group determines the business model for managing the financial assets according
to the facts and based on the specific business objective for managing the financial
assets determined by the Group’s key management personnel.In assessing whether the contractual cash flows are solely payments of principal and
interest the Group considers the contractual terms of the instrument. For the
purposes of this assessment ‘principal’ is defined as the fair value of the financial asset
on initial recognition. ‘Interest’ is defined as consideration for the time value of money
and for the credit risk associated with the principal amount outstanding during a
particular period of time and for other basic lending risks and costs as well as a profit
margin. The Group also assesses whether the financial asset contains a contractual
term that could change the timing or amount of contractual cash flows such that it would
not meet this condition.(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and
losses including any interest or dividend income are recognised in profit or loss
unless the financial assets are part of a hedging relationship.
116Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective
interest method. A gain or loss on a financial asset that is measured at amortised
cost and is not part of a hedging relationship shall be recognised in profit or loss
when the financial asset is derecognised reclassified through the amortisation
process or in order to recognise impairment gains or losses.- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated
using the effective interest method impairment and foreign exchange gains and
losses are recognised in profit or loss. Other net gains and losses are recognised in
other comprehensive income. On derecognition gains and losses accumulated in
other comprehensive income are reclassified to profit or loss.- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised
as income in profit or loss. Other net gains and losses are recognised in other
comprehensive income. On derecognition gains and losses accumulated in other
comprehensive income are reclassified to retained earnings.
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost by the Group.- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses including any interest expense are recognised in profit or loss unless the financial
liabilities are part of a hedging relationship.- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective
interest method.
(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 recognised amounts;
- The Group intends either to settle on a net basis or to realise the financial asset and settle
the financial liability simultaneously.
117Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or;
- the financial asset has been transferred although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset it does not
retain control over the transferred asset.Where a transfer of a financial asset in its entirety meets the criteria for derecognition the
difference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and when the transferred financial
asset is a debt investment at FVOCI any cumulative gain or loss that has been recognised
directly in other comprehensive income for the part derecognised.The Group derecognises a financial liability (or part of it) only when its contractual obligation
(or part of it) is extinguished.
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- financial investments at fair value through other comprehensive income.Financial assets measured at fair value including debt investments or equity securities at
FVPL equity securities designated at FVOCI and derivative financial assets are not subject
to the ECL assessment.Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as
the present value of all cash shortfalls (i.e. the difference between the cash flows due to the
entity in accordance with the contract and the cash flows that the Group expects to receive).The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within
the 12 months after the balance sheet date (or a shorter period if the expected life of the
instrument is less than 12 months).
118Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Loss allowances for bills receivable accounts receivable and receivables under financing
arising from oridinary business activities such as sale of goods and provision of services are
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.Except for bills receivable accounts receivable receivables under financing the Group
measures loss allowances at an amount equal to 12-month ECLs for the following financial
instruments and at an amount equal to lifetime ECLs for all other financial instruments:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.Provisions for bad and doubtful debts arising from receivables
(a) Categories of groups for collective assessment based on credit risk characteristics and
basis for determination
Based on the different credit risk characteristics of acceptors
Bills receivable the Group classifies bills receivable into two groups: bank
acceptance bills and commercial acceptance bills.Historically there is no significant difference in terms of
occurrence of losses among different customer types for the
Accounts receivable Group. Therefore the Group makes provisions for bad anddoubtful debts arising from accounts receivable on the basis
of all customers being one group without further
segmentation by different customer types.The Group’s receivables under financing are bank
Receivables under acceptance bills held for dual purposes. As the accepting
financing banks have high credit ratings the Group considers all
receivables under financing as a group.The Group’s other receivables mainly include deposits and
guarantees receivableect. Based on the nature of
Other receivables receivables and the credit risk characteristics of differentcounterparties the Group classifies other receivables into 2
groups specifically: the group of deposits and guarantees
receivable and the group of other receivables.
119Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(b) Criteria for individual assessment
Bills receivable accounts receivable receivables under financing and other
receivables are usually assessed collectively as a group based on credit risk
characteristics to make provisions. When a counterparty is significantly different from
other counterparties in the group in terms of credit risk characteristics or if there has
been a significant change in its credit risk characteristics the individual approach is
adopted for receivables due from this counterparty. For example when a counterparty is
in serious financial difficulties and the expected credit loss ratio of receivables due from
this counterparty is significantly higher than the average expected credit loss ratio of the
relevant ageing range it should be individualy assessed for provisioning purposes.Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a low
risk of default the borrower has a strong capacity to meet its contractual cash flow obligations
in the near term and adverse changes in economic and business conditions in the longer term
may but will not necessarily reduce the ability of the borrower to fulfil its contractual cash flow
obligations.Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since
initial recognition the Group compares the risk of default occurring on the financial instrument
assessed at the balance sheet date with that assessed at the date of initial recognition.When determining whether the credit risk of a financial asset has increased significantly since
initial recognition and when estimating ECL the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort including
forward-looking information. In particular the following information is taken into account:
- failure to make payments of principal and interest on their contractual 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.
120Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Credit-impaired financial assets
At each balance sheet date the Group assesses whether financial assets carried at
amortised cost and debt investments at FVOCI are credit-impaired. A financial asset is
‘credit-impaired’ when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred. Evidence that a financial asset is
credit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty the Group
having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for that financial asset because of financial
difficulties.Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is
recognised as an impairment gain or loss in profit or loss. The Group recognises an
impairment gain or loss for all financial instruments with a corresponding adjustment to their
carrying amount through a loss allowance account except for debt investments that are
measured at FVOCI for which the loss allowance is recognised in other comprehensive
income.Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of amounts
due.Subsequent recoveries of an asset that was previously written off are recognised as a
reversal of impairment in profit or loss in the period in which the recovery occurs.
(7) Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is
recognised at the actual issue price in shareholders’ equity relevant transaction costs are
deducted from shareholders’ equity (capital reserve) with any excess deducted from surplus
reserve and retained earnings sequentially. 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.
121Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
When treasury shares are cancelled the share capital should be reduced to the extent of the
total par value of the treasury shares cancelled. Where the cost of the treasury shares
cancelled exceeds the total par value the excess is deducted from capital reserve (share
premium) surplus reserve and retained earnings sequentially. If the cost of treasury shares
cancelled is less than the total par value the difference is credited to the capital reserve
(share premium).
11 Inventories
(1) Categories
Inventories include raw materials work in progress and finished goods. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase costs of
conversion and other expenditure incurred in bringing the inventories to their present location
and condition. In addition to the purchase cost of raw materials work in progress and
finished goods include direct labour costs and an appropriate allocation of production
overheads based on normal capacity.Agricultural products harvested are reported in accordance with the CAS No.1 - Inventories.
(2) Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
(3) Inventory count system
The Group maintains a perpetual inventory system.
(4) Amortisation method for low-value consumables and packaging materials
Consumables including low-value consumables and packaging materials are charged to profit
or loss upon receipt. The amortisation charge is included in the cost of the related assets or
recognised in profit or loss for the current period.
(5) Criteria and method for provision for obsolete inventories
At the balance sheet date inventories are carried at the lower of cost and net realisable value.Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and
relevant taxes. The net realisable value of materials held for use in production is measured
based on the net realisable value of the finished goods in which they will be incorporated. The
net realisable value of inventory held to satisfy sales or service contracts is measured based
on the contract price. If the quantities of inventories held by the Group exceed the quantities
specified in sales contracts the net realisable value of the excess portion of inventories is
based on general selling prices.Any excess of the cost over the net realisable value of each itemof inventories is recognised
as a provision for obsolete inventories and is recognised in profit or loss.
122Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
12 Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business
combination involving entities under common control is the Company’s share of the
carrying amount of the subsidiary’s equity in the consolidated financial statements of
the ultimate controlling party at the combination date. The difference between the
initial investment cost and the carrying amount of the consideration given is adjusted
to the share premium in the capital reserve with any excess adjusted to the surplus
reserves and retained earnings sequentially. 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 excess
adjusted to the surplus reserves and retained earnings sequentially.- For a long-term equity investment obtained through a business combination not
involving enterprises under common control the initial cost comprises the aggregate
of the fair value of assets transferred liabilities incurred or assumed and equity
securities issued by the Company in exchange for control of the acquiree. For a
long-term equity investment obtained through a business combination not involving
entities under common control and achieved through multiple transactions in stages
which do not form a bundled transaction the initial cost comprises the carrying
amount of the previously-held equity investment in the acquiree immediately before
the acquisition date and the additional investment cost at the acquisition date.(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is
initially recognised at the amount of cash paid if the Group acquires the investment
by cash or at the fair value of the equity securities issued if an investment is acquired
by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements long-term equity investments in
subsidiaries are accounted for using the cost method unless the investment is classified
as held for sale (See Note III. 31). Except for cash dividends or profit distributions
declared but not yet distributed that have been included in the price or consideration
paid in obtaining the investments the Company recognises its share of the cash
dividends or profit distributions declared by the investee as investment income for the
current period.The investments in subsidiaries are stated in the balance sheet at cost less
accumulated impairment losses.
123Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
For the impairment of the investments in subsidiaries refer to Note III.21.In the Group’s consolidated financial statements subsidiaries are accounted for in
accordance with the policies described in Note III.7.(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control
(see Note III.12(3)) and rights to the net assets of the arrangement.Associated enterprises refer to enterprises to which the Group can exercise significant
influence (see Note III.12(3)).A long-term equity investment in a joint venture or an associate is accounted for using
the equity method for subsequent measurement unless the investment is classified as
held for sale (see Note III.31).The accounting treatments under the equity method adopted by the Group are as
follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest
in the fair value of the investee’s identifiable net assets at the date of acquisition the
investment is initially recognised at cost. Where the initial investment cost is less
than the Group’s interest in the fair value of the investee’s identifiable net assets at
the date of acquisition the investment is initially recognised at the investor’s share of
the fair value of the investee’s identifiable net assets and the difference is
recognised in profit or loss.- After the acquisition of the investment the Group recognises its share of the
investee’s profit or loss and other comprehensive income as investment income or
losses and other comprehensive income respectively and adjusts the carrying
amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions the carrying amount of the investment is reduced by
the amount attributable to the Group. Changes in the Group’s share of the
investee’s owners’ equity other than those arising from the investee’s net profit orloss other comprehensive income or profit distribution (referred to as “other changesin owners’ equity”) is recognised directly in the Group’s equity and the carrying
amount of the investment is adjusted accordingly.- In calculating its share of the investee’s net profits or losses other comprehensive
income and other changes in owners’ equity the Group recognises investment
income and other comprehensive income after making appropriate adjustments to
align the accounting policies or accounting periods with those of the Group based on
the fair value of the investee’s identifiable net assets at the date of acquisition.Unrealised profits and losses resulting from transactions between the Group and its
associates or joint ventures are eliminated to the extent of the Group’s interest in the
associates or joint ventures. Unrealised losses resulting from transactions between
the Group and its associates or joint ventures are eliminated in the same way as
unrealised gains but only to the extent that there is no impairment.
124Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
- The Group discontinues recognising its share of further losses of the investee after
the carrying amount of the long-term equity investment and any long-term interest
that in substance forms part of the Group’s net investment in the associate is reduced
to zero except to the extent that the Group has an obligation to assume additional
losses. If the joint venture or the associate subsequently reports net profits the
Group resumes recognising its share of those profits only after its share of the profits
equals the share of losses not recognised.For the impairment of the investments in joint ventures and associates refer to Note
III.21.
(3) Criteria for determining the existence of joint control over an investee
Joint control is the contractually agreed sharing of control of an arrangement which exists
only when decisions about the relevant activities (activities with significant impact on the
returns of the arrangement) require the unanimous consent of the parties sharing control.The following factors are usually considered when assessing whether the Group can exercise
joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related activities
unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the
unanimous consent of all participant parties that sharing of control.Significant influence is the power to participate in the financial and operating policy decisions
of an investee but does not have control or joint control over those policies.
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 amortisation and
impairment losses and adopts a depreciation or amortisation policy for the investment
property which is consistent with that for buildings or land use rights unless the investment
property is classified as held for sale (see Note III.31). For the impairment of the investment
properties refer to Note III.21.Category Estimated useful Residual value rate Depreciation ratelife (years) (%) (%)
Plant and buildings 20 - 40 years 0 - 5% 2.4% - 5.0%
125Yantai Changyu Pioneer Wine Co. Ltd. 2025 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 cost of a purchased fixed asset comprises the purchase price related taxes and any
directly attributable expenditure for bringing the asset to working condition for its intended use.The cost of self-constructed assets is measured in accordance with the policy set out in Note
III.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 recognised as a separate fixed asset.Any subsequent costs including the cost of replacing part of an item of fixed assets are
recognised as assets when it is probable that the economic benefits associated with the costs
will flow to the Group and the carrying amount of the replaced part is derecognised. The
costs of the day-to-day maintenance of fixed assets are recognised in profit or loss as
incurred.Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
(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 (see Note III.31).The estimated useful lives residual value rates and depreciation rates of each class of fixed
assets are as follows:
Class Estimated useful Residual value rate Depreciation ratelife (years) (%) (%)
Plant and buildings 20 - 40 years 0 - 5% 2.4% - 5.0%
Machinery equipment 5 - 30 years 0 - 5% 3.2% - 20.0%
Motor vehicles 4 - 12 years 0 - 5% 7.9% - 25.0%
Useful lives estimated residual values and depreciation methods are reviewed at least at
each year-end.
(3) For the impairment of the fixed assets refer to Note III.21.
(4) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.
126Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying amount of
the item and are recognised in profit or loss on the date of retirement or disposal.
15 Construction in progress
The cost of self-constructed assets includes the cost of materials direct labour capitalised
borrowing costs (see Note III.16) and any other costs directly attributable to bringing the asset
to working condition for its intended use.A self-constructed asset is classified as construction in progress and transferred to fixed asset
when it is ready for its intended use. No depreciation is provided against construction in
progress.Criteria and timing for the transfer to fixed assets：
Category Criteria and timing for the transfer to fixed assets
(1) The main construction projects and ancillary projects have been
substantially completed;
(2) the construction projects have been checked and accepted by
the survey design construction and supervision units after
meeting the pre-determined design requirements;
(3) the construction projects have been checked and accepted by
Plant and buildings external departments such as the fire department the land and
resources department and the planning department;
(4) if a construction project is available for its intended use but its
final account has not yet been finalised the construction project
will be transferred to fixed assets at its estimated value from the
date it is available for its intended use based on the its
estimated value of construction.
(1) The relevant equipment and other supporting facilities have
been installed;
(2) the equipment can operate normally and stably for a period after
Machinery and commissioning;
equipment (3) the production equipment is capable of producing qualified
products stably for a period;
(4) the equipment has been checked and accepted by asset
management personnel and users.Construction in progress is stated in the balance sheet at cost less accumulated impairment
losses (see Note III.21).When an enterprise sells products or by-products produced before a fixed asset is available
for its intended use the proceeds and related cost are accounted for in accordance with CAS
14 – Revenue and CAS 1 – Inventories respectively and recognised in profit or loss for the
current period.
127Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
16 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction or production
of a qualifying asset are capitalised as part of the cost of the asset. Other borrowing costs
are recognised as financial expenses when incurred.During the capitalisation period the amount of interest (including amortisation of any discount
or premium on borrowing) to be capitalised in each accounting period is determined as
follows:
- Where funds are borrowed specifically for the acquisition and construction or production of
a qualifying asset the amount of interest to be capitalised is the interest expense
calculated using effective interest rates during the period less any interest income earned
from depositing the borrowed funds or any investment income on the temporary investment
of those funds before being used on the asset.- To the extent that the Group borrows funds generally and uses them for the acquisition and
construction or production of a qualifying asset the amount of borrowing costs eligible for
capitalisation is determined by applying a capitalisation rate to the weighted average of the
excess amounts of cumulative expenditure on the asset over the above amounts of specific
borrowings. The capitalisation rate is the weighted average of the interest rates
applicable to the general-purpose borrowings.The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or when appropriate a shorter period to
the initially recognised amount of the borrowings.During the capitalisation period exchange differences related to the principal and interest on
a specific-purpose borrowing denominated in foreign currency are capitalised as part of the
cost of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognised as a
financial expense when incurred.The capitalisation period is the period from the date of commencement of capitalisation of
borrowing costs to the date of cessation of capitalisation excluding any period over which
capitalisation is suspended. Capitalisation of borrowing costs commences when expenditure
for the asset is being incurred borrowing costs are being incurred and activities of acquisition
construction or production that are necessary to prepare the asset for its intended use are in
progress and ceases when the assets become ready for their intended use. Capitalisation
of borrowing costs should cease when the qualifying asset being constructed or produced has
reached its expected usable or saleable condition. Capitalisation of borrowing costs is
suspended when the acquisition construction or production activities are interrupted
abnormally for a period of more than three months.
17 Biological assets
The Group’s biological assets are bearer biological assets.Bearer biological assets are those that are held for the purposes of producing agricultural
produce rendering of services or rental. Bearer biological assets in the Group are vines.Bearer biological assets are initially measured at cost. The cost of self-grown or self-bred
bearer biological assets represents the necessary directly attributable expenditure incurred
128Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
before satisfying the expected production and operating purpose including capitalised
borrowing costs.Bearer biological assets after reaching the expected production and operating purpose are
depreciated using the straight-line method over its estimated useful life. The estimated
useful lives estimated net residual value rates and depreciation rates of bearer biological
assets are as follows:
Category Estimated useful
Estimated net
life (years) residual value
Depreciation rate
rate(%) (%)
Vines 20 years 0% 5.0%
The Group evaluates the useful life and expected net salvage value by considering the normal
producing life of the bearer biological assets.Useful lives estimated residual values and depreciation methods of bearer biological assets
are reviewed at least at each year-end. Any changes should be treated as changes in
accounting estimates.For a bearer biological asset that has been sold damaged dead or destroyed any difference
between the disposal proceeds and the carrying amount of the asset should be recognised in
profit or loss for the period in which it arises.
18 Intangible assets
Useful life and amortisation methods
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 III.21). For an
intangible asset with finite useful life its cost estimated less residual value and accumulated
impairment losses is amortised on the straight-line method over its estimated useful life
unless the intangible asset is classified as held for sale.The estimated useful lives basis for determination and amortisation methods of intangible
assets are as follows:
Item Amortisation Amortisationperiod (years) Basis for determination methods
Land use rights 40 - 50 years Terms of land use rights Stright-lineMethod
Shorter of the term of
Software licenses 5 - 10 years software or the estimated Stright-line
useful life of software Method
Shorter of the term of
Trademarks 10 years trademark rights or the Stright-lineestimated useful life of Method
trademark rights
Useful lives and amortisation methods of intangible asset with finite useful life are reviewed at
least at each year-end.
129Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
An intangible asset is regarded as having an indefinite useful life and is not amortised when
there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group. At the balance sheet date the Group had intangible assets
with infinite useful lives including the land use rights and trademarks. Land use rights with
infinite useful lives are permanent land use rights with permanent ownership held by the
Group under the relevant Chile and Australian laws arising from the Group’s acquisition of
Via Indómita S.A. Via 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. (the “Australia Kilikanoon Estate”) therefore there was no amortisation. The right to use
trademark refers to the trademark held by the Group arising from the acquisition of the Chile
Indomita Wine Group and the Australia Kilikanoon Estate with infinite useful lives. The
valuation of trademark was based on the trends in the market and competitive environment
product cycle and managing long-term development strategy. Those basis 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
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.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
Expenditures incurred with a beneficial period of over one year are recognised as long-term
deferred expenses.Long-term deferred expenses are amortised using a straight-line method within the benefit
period. The respective amortisation periods for such expenses are as follows:
Item Amortisation period
Land requisition fee 50 years
Greening fee 5 - 20 years
Renovation Fee 3 - 20 years
Others 3 years
130Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
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
- bearer biological assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses etc.If any indication exists the recoverable amount of the asset is estimated. In addition the
Group estimates the recoverable amounts of goodwill and intangible assets with infinite useful
lives at each year-end irrespective of whether there is any indication of impairment.Goodwill is allocated to each asset group or set of asset groups that is expected to benefit
from the synergies of the combination for the purpose of impairment testing.The recoverable amount of an asset (or asset group set of asset groups) is the higher of its
fair value (see Note III.22) less costs to sell and its present value of expected future cash
flows.An asset group is composed of assets directly related to cash-generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.The present value of expected future cash flows of an asset is determined by discounting the
future cash flows estimated to be derived from continuing use of the asset and from its
ultimate disposal to their present value using an appropriate pre-tax discount rate.An impairment loss is recognised in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognised
accordingly. Impairment losses related to an asset group or a set of asset groups are
allocated first to reduce the carrying amount of any goodwill allocated to the asset group or set
of asset groups and then to reduce the carrying amount of the other assets in the asset group
or set of asset groups on a pro rata basis. However such allocation would not reduce the
carrying amount of an asset below the highest of its fair value less costs to sell (if
measurable) its present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognised it is not reversed in a subsequent period.
131Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
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 Provisions
A provision is recognised for an obligation related to a contingency if the Group has a present
obligation that can be estimated reliably and it is probable that an outflow of economic
benefits will be required to settle the obligation.A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation. Where the effect of the time value of money is material provisions
are determined by discounting the expected future cash flows. Factors pertaining to a
contingency such as the risks uncertainties and time value of money are taken into account
as a whole in reaching the best estimate.Where there is a continuous range of possible
outcomes for the expenditure required and each possible outcome in that range is as likely as
any other the best estimate is the mid-point of that range. In other cases the best estimate is
determined as follows:
- Where the contingency involves a single item the best estimate is the most likely outcome.- Where the contingency involves a large population of items the best estimate is
determined by weighting all possible outcomes by their associated probabilities.The Group reviews the carrying amounts of provisions at the balance sheet date and adjusts
their carrying amounts to the current best estimates.
24 Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based payments..
132Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services
received from employees the payment is measured at the fair value of the equity
instruments granted to employees at the grant date. If the equity instruments granted to
employees vest immediately the fair value of the equity instruments granted is fully
recognised as costs or expenses on the grant date with a corresponding increase in
capital reserve. If the equity instruments granted do not vest until the completion of
services for a period or until the achievement of a specified performance condition the
Group recognises an amount at each balance sheet date during the vesting period based
on the best estimate of the number of equity instruments expected to vest according to
newly obtained subsequent information regarding changes in the number of employees
expected to vest the equity instruments. The Group measures the services received at the
grant-date fair value of the equity instruments and recognises the costs or expenses as the
services are received with a corresponding increase in capital reserve.When the Group receives services but has no obligation to settle the transaction because
the relevant equity instruments are issued by the Company’s ultimate parent or its
subsidiaries outside the Group the Group also classifies the transaction as equity-settled.
25 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’s ordinary
activities when the inflows result in increase in shareholders’ equity other than increase
relating to contributions from shareholders.Revenue is recognised when the Group satisfies the performance obligation in the contract by
transferring the control over relevant goods or services to the customers.Where a contract has two or more performance obligations the Group determines the
stand-alone selling price at contract inception of the distinct good or service underlying each
performance obligation in the contract and allocates the transaction price in proportion to
those stand-alone selling prices. The Group recognises as revenue the amount of the
transaction price that is allocated to each performance obligation. The stand-alone selling
price is the price at which the Group would sell a promised good or service separately to a
customer. If a stand-alone selling price is not directly observable the Group considers all
information that is reasonably available to the entity maximises the use of observable inputs
to estimate the stand-alone selling price.For the contract with a warranty the Group analyses the nature of the warranty provided if the
warranty provides the customer with a distinct service in addition to the assurance that the
product complies with agreed-upon specifications the Group recognises for the promised
warranty as a performance obligation. Otherwise the Group accounts for the warranty in
accordance with the requirements of CAS No.13 – Contingencies.
133Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The transaction price is the amount of consideration to which the Group expects to be entitled
in exchange for transferring promised goods or services to a customer excluding amounts
collected on behalf of third parties. The Group recognises the transaction price only to the
extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur when the uncertainty associated with the variable consideration is
subsequently resolved. Where the contract contains a significant financing component the
Group recognises the transaction price at an amount that reflects the price that a customer
would have paid for the promised goods or services if the customer had paid cash for those
goods or services when (or as) they transfer to the customer. The difference between the
amount of promised consideration and the cash selling price is amortised using an effective
interest method over the contract term. The Group does not adjust the consideration for any
effects of a significant financing component if it expects at contract inception that the period
between when the Group transfers a promised good or service to a customer and when the
customer pays for that good or service will be one year or less.The Group satisfies a performance obligation over time if one of the following criteria is met; or
otherwise a performance obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’s
performance as the Group performs;
- the customer can control the asset created or enhanced during the Group’s performance;
or
- the Group’s performance does not create an asset with an alternative use to it and the
Group has an enforceable right to payment for performance completed to date.For performance obligation satisfied over time the Group recognises revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. When
the outcome of that performance obligation cannot be measured reasonably but the Group
expects to recover the costs incurred in satisfying the performance obligation the Group
recognises revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.For performance obligation satisfied at a point in time the Group recognises revenue at the
point in time at which the customer obtains control of relevant goods or services. To
determine whether a customer has obtained control of goods or services the Group considers
the following indicators:
- the Group has a present right to payment for the goods or services;
- the Group has transferred physical possession of the goods to the customer;
- the Group has transferred the legal title of the goods or the significant risks and rewards of
ownership of the goods to the customer; and
- the customer has accepted the goods or services.For the sale of a product with a right of return the Group recognises revenue when the Group
obtains control of that product in the amount of consideration to which the Group expects to
be entitled in exchange for the product transferred (i.e. excluding the amount of which
expected to be returned) and recognises a refund liability for the products expected to be
returned. Meanwhile an asset is recognised in the amount of carrying amount of the product
expected to be returned less any expected costs to recover those products (including potential
decreases in the value of returned products) and carry forward to cost in the amount of
carrying amount of the transferred products less the above costs. At the end of each
reporting period the Group updates its assessment of future sales return. If there is any
change it is accounted for as a change in accounting estimate.
134Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
A contract asset is the Group’s right to consideration in exchange for goods or services that it
has transferred to a customer when that right is conditional on something other than the
passage of time. The Group recognises loss allowances for expected credit loss on contract
assets. Accounts receivable is the Group’s right to consideration that is unconditional (only
the passage of time is required). A contract liability is the Group’s obligation to transfer
goods or services to a customer for which the Group has received consideration (or an
amount of consideration is due) from the customer.The following is the description of accounting policies regarding revenue from the Group’s
principal activities:
The Group’s sales revenue is mainly derived from dealer sales. Revenue is recognised
when the Group transfers control of the related products to the customer. Based on the
business contract the Group recognised the sales revenue of these transfers when the
product is confirmed and signed for acceptance by the customers.
26 Contract costs
Contract costs are either the incremental costs of obtaining a contract with a customer or the
costs to fulfil a contract with a customer.Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a
contract with a customer that it would not have incurred if the contract had not been obtained
e.g. an incremental sales commission. The Group recognises as an asset the incremental
costs of obtaining a contract with a customer if it expects to recover those costs. Other costs
of obtaining a contract are expensed when incurred.If the costs to fulfil a contract with a customer are not within the scope of inventories or other
accounting standards the Group recognises an asset from the costs incurred to fulfil a
contract only if those costs meet all of the following criteria:
- the costs relate directly to an existing contract or to a specifically identifiable anticipated
contract including direct labour direct materials allocations of overheads (or similar
costs) costs that are explicitly chargeable to the customer and other costs that are incurred
only because the Group entered into the contract
- the costs generate or enhance resources of the Group that will be used in satisfying (or in
continuing to satisfy) performance obligations in the future; and
- the costs are expected to be recovered.Assets recognised for the incremental costs of obtaining a contract and assets recognised for
the costs to fulfil a contract (the “assets related to contract costs”) are amortised on a
systematic basis that is consistent with the transfer to the customer of the goods or services to
which the assets relate and recognised in profit or loss for the current period. The Group
recognises the incremental costs of obtaining a contract as an expense when incurred if the
amortisation period of the asset that the entity otherwise would have recognised is one year or
less.The Group recognises an impairment loss in profit or loss to the extent that the carrying
amount of an asset related to contract costs exceeds:
- remaining amount of consideration that the Group expects to receive in exchange for the
goods or services to which the asset relates; less
135Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
- the costs that relate directly to providing those goods or services that have not yet been
recognised as expenses.
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 accured at the applicable benchmarks and rates are recognised as a
liability as the employee provides services with a corresponding charge to profit or loss or
included in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China the Group
participated in a defined contribution basic pension insurance plan in the social insurance
system established and managed by government organisations. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks and rates
stipulated by the government. Basic pension insurance contributions payable are recognised
as a liability as the employee provides services with a corresponding charge to profit or loss
or included in the cost of assets where appropriate.
(3) Termination benefits
When the Group terminates the employment with employees before the employment
contracts expire or provides compensation under an offer to encourage employees to accept
voluntary redundancy a provision is recognised with a corresponding expense in profit or loss
at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of
an 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 recognised when there is reasonable assurance that the grant will be
received and that the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset it is measured at fair value.
136Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets. A
government grant related to an asset is recognised as deferred income and amortised over
the useful life of the related asset on a reasonable and systematic manner as other income or
non-operating income. A grant that compensates the Group for expenses or losses to be
incurred in the future is recognised as deferred income and included in other income or
non-operating income in the periods in which the expenses or losses are recognised. Or
included in other income or non-operating income directly.
29 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination or items recognised directly in equity (including other
comprehensive income).Current tax is the expected tax payable calculated at the applicable tax rate on taxable income
for the year plus any adjustment to tax payable in respect of previous years.At the balance sheet date current tax assets and liabilities are offset only if the Group has a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases which include deductible losses
and tax credits carried forward to subsequent periods. Deferred tax assets are recognised to
the extent that it is probable that future taxable profits will be available against which
deductible temporary differences can be utilised.Deferred tax is not recognised for temporary differences arising from the initial recognition of
assets or liabilities in a single transaction that is not a business combination affects neither
accounting profit nor taxable profit (or deductible loss) and does not give rise to equal taxable
and deductible temporary differences. Deferred tax is also not recognised for taxable
temporary differences arising from the initial recognition of goodwill.At the balance sheet date deferred tax is measured based on the tax consequences that
would follow from the expected manner of recovery or settlement of the carrying amounts of
the assets and liabilities using tax rates enacted at the balance sheet date that are expected
to be applied in the period when the asset is recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilised.Such reductions are 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:
137Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
- the same taxable entity; or
- different taxable entities which intend either to settle the current tax liabilities and current
tax assets on a net basis or to realise the assets and settle the liabilities simultaneously in
each future period in which significant amounts of deferred tax liabilities or deferred tax
assets are expected to be settled or recovered.
30 Leases
A contract is lease if the lessor conveys the right to control the use of an identified asset to
lessee for a period of time in exchange for consideration.At inception of a contract the Group assesses whether a contract is or contains a lease. A
contract is or contains a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.To assess whether a contract conveys the right to control the use of an identified asset the
Group assesses whether:
- the contract involves the use of an identified asset. An identified asset may be specified
explicitly or implicitly speicied in a contrat and should be physically distinct or capacity
portion or other portion of an asset that is not physically distinct but it represents
substantially all of the capacity of the asset and thereby provides the customer with the
right to obtain substantially all of the ecomonic benefits from the use of the asset. If the
supplier has a substantive substitution right throughout the period of use then the asset is
not identified;
- the lessee has the right to obtain substantially all of the economic benefits from use of the
asset throughout the period of use;
- the lessee has the right to direct the use of the asset.For a contract that contains more separate lease componets the lessee and the lessor
separate lease components and account for each lease component as a lease separately. For
a contract that contains lease and non-lease components the lessee and the lessor separate
lease components from non-lease components. For a contract that contains lease and
non-lease components the lessee allocates the consideration in the contract to each lease
component on the basis of the relative stand-alone price of the lease component and the
aggregate stand-alone price of the non-lease components. The lessor allocates the
consideration in the contract in accordance with the accounting policy in Note III.25.
(1) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost which comprises the initial amount of
the lease liability any lease payments made at or before the commencement date (less any
lease incentives received) any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the site on which it is located or
restore the underlying asset to the condition required by the terms and conditions of the lease.
138Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The right-of-use asset is depreciated using the straight-line method. If the lessee is
reasonably certain to exercise a purchase option by the end of the lease term the right-of-use
asset is depreciated over the remaining useful lives of the underlying asset. Otherwise the
right-of-use asset is depreciated from the commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease term. Impairment losses of
right-of-use assets are accounted for in accordance with the accounting policy described in
Note III.21.The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date discounted using the interest rate implicit in the lease or if
that rate cannot be readily determined the Group’s incremental borrowing rate.A constant periodic rate is used to calculate the interest on the lease liability in each period
during the lease term with a corresponding charge to profit or loss or included in the cost of
assets where appropriate. Variable lease payments not included in the measurement of the
lease liability is charged to profit or loss or included in the cost of assets where appropriate as
incurred.Under the following circumstances after the commencement date the Group remeasures
lease liabilities based on the present value of revised lease payments:
- there is a change in the amounts expected to be payable under a residual value guarantee;
- there is a change in future lease payments resulting from a change in an index or a rate
used to determine those payments;
- there is a change in the assessment of whether the Group will exercise a purchase
extension or termination option or there is a change in the exercise of the extension or
termination option.When the lease liability is remeasured a corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.The Group has elected not to recognise right-of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or less and leases of low-value assets. The Group
recognises the lease payments associated with these leases in profit or loss or as the cost of
the assets where appropriate using the straight-line method over the lease term.
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or an
operating lease. A lease is classified as a finance lease if it transfers substantially all the risks
and rewards incidental to ownership of an underlying asset irrespective of whether the legal
title to the asset is eventually transferred. An operating lease is a lease other than a finance
lease.When the Group is a sub-lessor it assesses the lease classification of a sub-lease with
reference to the right-of-use asset arising from the head lease not with reference to the
underlying asset. If a head lease is a short-term lease to which the Group applies practical
expedient described above then it classifies the sub-lease as an operating lease.
139Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Under a finance lease at the commencement date the Group recognises the finance lease
receivable and derecognises the finance lease asset. The finance lease receivable is initially
measured at an amount equal to the net investment in the lease. The net investment in the
lease is measured at the aggregate of the unguaranteed residual value and the present value
of the lease receivable that are not received at the commencement date discounted using the
interest rate implicit in the lease.The Group recognises finance income over the lease term based on a pattern reflecting a
constant periodic rate of return. The derecognition and impairment of the finance lease
receivable are recognised in accordance with the accounting policy in Note III.10. Variable
lease payments not included in the measurement of net investment in the lease are
recognised as income as they are earned.Lease receipts from operating leases is recognised as income using the straight-line method
over the lease term. The initial direct costs incurred in respect of the operating lease are
initially capitalised and subsequently amortised in profit or loss over the lease term on the
same basis as the lease income. Variable lease payments not included in lease receipts are
recognised as income as they are earned.
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 (see Note III.22) less costs to sell (except financial assets (see Note III.10)
deferred tax assets (see Note III.29) and investment properties subsequent measured at fair
value (see Note III. 13) initially and subsequently. Any excess of the carrying amount over
the fair value (see Note III.22) less costs to sell is recognised 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 recognised as a liability at the balance sheet
date but are disclosed in the notes separately.
140Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
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 Company 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
organisation structure management requirements and internal reporting system the Group’s
operation is divided into five parts: China Spain France Chile and Australia. The
management periodically evaluates segment results in order to allocate resources and
evaluate performances. In 2025 over 79% of revenue more than 83% of profit and over
91% 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 judgements
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets liabilities income and expenses. Actual results may differ from these estimates.The management estimates as well as underlying assumptions and uncertainties involved are
reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods affected.Significant accounting estimates see Notes V.3 7 11 and 16.
36 Changes in significant accounting policies
There were no changes in the Group’s accounting policies in 2025.IV. Taxation
1 Main types of taxes and corresponding tax rates
Type of tax Taxation basis Tax rate
Output VAT is calculated on
product sales and taxable
Value-added tax services revenue. The 13% 9% 6% (China) 20% (France)
(VAT) basis for VAT payable is to 21% (Spain) 19% (Chile) and 10%
deduct input VAT from the (Australia)
output VAT for the period
Consumption tax Based on taxable revenue 10% of the price 20% of the price and
141Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
RMB1000 each ton (China)
Urban maintenance
and construction Based on VAT paid 7% (China)
tax
Corporate income Based on taxable profits 25% (China) 25% (France) 28%tax (Spain) 27% (Chile) 30% (Australia)
Other than tax incentives stated in Note IV. 2 applicable tax rates of the Group in 2025 and
2024 are all stated as above.
2 Tax preferential treatments
Ningxia Changyu Grape Growing Co. Ltd. (“Ningxia Growing”) a subsidiary of the Group
whose principal activity is grape growing is incorporated in Ningxia Huizu Autonomous
Region. According to clause 27 of 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 Ningxia Growing enjoys an exemption of corporate income tax.Yantai Changyu Grape Growing Co. Ltd. (“Grape Growing”) a branch of the Company
whose principal activity is grape growing is incorporated in Zhifu District Yantai City
Shandong Province. According to clause 27 of 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 Grape Growing enjoys an exemption of corporate
income tax.Yantai Changyu Wine Research & Development Centre Co. Ltd. (“R&D Centre”) a branch of
the Company is an enterprise engaged in grape growing in the Economic and Technological
Development Zone of Yantai City Shandong Province. Pursuant to Article 27 of the
Enterprise Income Tax Law of the People’s Republic of China and Article 86 of the
Implementation Regulations of the Enterprise Income Tax Law of the People’s Republic of
China R&D Centre enjoys the preferential policy of exemption of enterprise income tax on
income from grape growing.Beijing Changyu AFIP Agriculture Development Co. Ltd. (“Agriculture Development”) a
subsidiary of the Group whose principal activity is grape growing is incorporated in Miyun
Beijing. According to clause 27 of the Corporate Income Tax Law of the People’s Republic
of China and clause 86 of the Implementation Rules of Enterprise Income Tax Law of the
People’s Republic of China Agriculture Development enjoys an exemption of corporate
income tax.Xinjiang Chateau Changyu Baron Balboa Co. Ltd. (“Chateau Shihezi”) a subsidiary of the
Company is an enterprise of wine production and sales incorporated in Shihezi city Xinjiang
Weizu Autonomous. In accordance with relevant provisions of the Announcement on
Continuation of CIT Policies for Large-scale Development in the Western Region
(Announcement [2020] No.23 of the Ministry of Finance) the Company is entitled to
preferential tax policies. Therefore during the period from 2021 to 2030 its corporate income
tax shall be levied at a reduced tax rate of 15%.Ningxia Changyu Longyu Chateau Co. Ltd. (“Ningxia Chateau”) a subsidiary of the
Company is an enterprise of wine production and sales incorporated in Yinchuan Ningxia
Hui Autonomous Region. In accordance with the Notice on Continuing the Enterprise Income
Tax Policies for the Large-Scale Development of Western China (Notice of the Ministry of
Finance [2020] No. 23) Ningxia Chateau is qualified to enjoy preferential taxation policies
142Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
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 is an
enterprise engaged in wine production and sales incorporated in Shihezi City Xinjiang Uygur
Autonomous Region. In accordance with relevant provisions of the Announcement on
Continuation of CIT Policies for Large-scale Development in the Western Region
(Announcement [2020] No.23 of the Ministry of Finance) Changyu (Ningxia) Wine is entitled
to preferential tax policies. Therefore during the period from 2021 to 2030 its corporate
income tax shall be levied at a reduced tax rate of 15%.In accordance with the PRC Enterprise Income Tax Law and its implementing regulations the
Notice of the Ministry of Finance and the State Administration of Taxation on Further Support
the Inclusive Tax Expenses Policies for Micro and Small Enterprises for micro and small
enterprises Development (Announcement [2023] No. 12 of the Ministry of Finance and the
State Taxation Administration) for micro and small enterprises meet the application
requirements that the amount of taxable income shall be reduced by 25% and the applicable
rate of enterprise income tax shall be 20%. Beijing Changyu Wine Marketing Co. Ltd.(“Beijing Marketing”) a subsidiary of the Company was identified as a qualified small
enterprise with meagre profits.Pursuant to the Announcement on Clarifying VAT Relief and Other Policies for Small-scale
VAT Taxpayers (Announcement [2023] No.19 of the Ministry of Finance and the State
Taxation Administration) the taxable sales revenue of small-scale VAT taxpayers to which a
levy rate of 3% is applicable shall be subject to VAT at a reduced levy rate of 1%; and the
prepaid VAT items to which a pre-levy rate of 3% is applicable shall be subject to a reduced
pre-levy rate of 1% from the period from 1 January 2024 to 31 December 2027. Xinjiang
Changyu Sales Co. Ltd. Weimeisi Tasting Centre Branch is entitled to the above preferential
tax policies.In accordance with the Notice of the Ministry of Finance and the State Administration of
Taxation on Further Stepping up the Implementation of the Policy for the Refund of Term-End
Excess Input Value-Added Tax Credits (Notice of the Ministry of Finance and State Taxation
Administration [2022] No. 14) the government should further step up the implementation of
the policy for the refund of term-end excess input value-added tax credits and expand the
scope of industries applicable to this policy. The Company and its qualified subsidiaries have
enjoyed this policy.Pursuant to the Announcement on Further Tax and Fee Policies to Support the Development
of Small and Micro Enterprises and Individual Businesses (Announcement No. 12 [2023])
jointly issued by the Ministry of Finance and the State Taxation Administration for the period
from January 1 2023 to December 31 2027 VAT small-scale taxpayers small low-profit
enterprises and individual industrial and commercial households are subject to a 50%
reduction in Resource Tax (excluding Water Resource Tax) City Maintenance and
Construction Tax Property Tax Urban Land Use Tax Stamp Duty (excluding Stamp Duty on
Securities Trading) Farmland Occupation Tax Education Surcharge and Local Education
Surcharge. Certain subsidiaries of the Company qualify for the aforementioned tax reductions.
143Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
Item 2025 2024
Cash on hand 18877 27228
Bank deposits 1884759212 1797503539
Other monetary funds 5833715 317363
Total 1890611804 1797848130
Including: Total overseas deposits 70392228 33384691
As at 31 December 2025 details of restricted bank deposits are as follows：
Item 2025 2024
Escrow account for migrant workers' wages - 1153216
As at 31 December 2025 the Group’s term deposits with previous maturity of more than three
months is RMB 45650000 with interest rate 1.30% - 2.25% (31 December 2024: RMB
78650000 with interest rate 1.70% - 2.25%).
As at 31 December 2025 the Group’s other monetary assets is as follows:
Item 2025 2024
Alipay account balance 1723715 158894
Deposits for the customs - 134076
Security Deposit for Banking Platform 4110000 24393
Total 5833715 317363
As at 31 December 2025 the Group did not have any special interest arrangements such as
the establishment of joint fund management accounts with related parties.
2 Bills receivable
Classification of bills receivable
Item 2025 2024
Bank acceptance bills 102342 1036243
Total 102342 1036243
All of the above bills are due within one year.
144Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
3 Accounts receivable
(1) Accounts receivable by customer type are as follows:
Type 31 December 2025 31 December 2024
Amounts due from related parties - 1458339
Amounts due from other customers 272877730 276983985
Sub-total 272877730 278442324
Less: Provision for bad and doubtful debts (7945006) (7612723)
Total 264932724 270829601
As at 31 December 2025 ownership restricted accounts receivable is RMB 73330179 (31
December 2024: RMB 35917860) referring to Note V. 52.
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2025 2024
Within 1 year (inclusive) 269602415 274048512
Over 1 year but within 2 years (inclusive) 390478 747104
Over 2 years but within 3 years (inclusive) 656993 2122990
Over 3 years 2227844 1523718
Sub-total 272877730 278442324
Less: Provision for bad and doubtful debts (7945006) (7612723)
Total 264932724 270829601
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
At all times the Group measures the impairment loss for accounts receivable at an amount
equal to lifetime ECLs and the ECLs are based on the number of overdue days and the loss
given default. According to the historical experience of the Group there are no significant
differences in the losses of different customer groups. Therefore different customer groups
are not further distinguished when calculating impairment loss based on the overdue
information.
145Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
2025
Loss given default Carrying amount at Impairment loss atthe end of the year the end of the year
Current 0.2% 244909222 563761
Overdue for 1 to 30 days 2.5% 15508458 393980
Overdue for 31 to 60 days 8.4% 2540574 213577
Overdue for 61 to 90 days 18.1% 874825 157924
Overdue for 91 to 120 days 24.2% 1203304 290701
Overdue for 121 to 150 days 33.9% 176511 59752
Overdue for 151 to 180 days 33.9% 1183584 400661
Overdue for 181 to 210 days 48.9% 138802 67836
Overdue for 211 to 240 days 62.2% 1037797 646019
Overdue for 241 to 270 days 80.3% 84352 67718
Overdue for 271 to 300 days 83.8% 848017 710791
Overdue for 301 to 330 days 100.0% 868616 868616
Overdue for 331 to 360 days 100.0% 359819 359819
Overdue for 360 days 100.0% 3143849 3143851
Total 2.9% 272877730 7945006
2024
Loss given default Carrying amount at Impairment loss atthe end of the year the end of the year
Current 0.1% 245292444 265047
Overdue for 1 to 30 days 1.5% 19549341 293143
Overdue for 31 to 60 days 6.0% 4278753 256562
Overdue for 61 to 90 days 15.4% 432734 66747
Overdue for 91 to 120 days 23.5% 605044 142111
Overdue for 121 to 150 days 30.7% 1337986 410793
Overdue for 151 to 180 days 38.2% 558511 213620
Overdue for 181 to 210 days 46.0% 492202 226407
Overdue for 211 to 240 days 57.1% 56462 32224
Overdue for 241 to 270 days 83.6% 793827 663562
Overdue for 271 to 300 days 92.5% 33343 30830
Overdue for 301 to 330 days 100.0% 898444 898444
Overdue for 331 to 360 days 100.0% 780 780
Overdue for 360 days 100.0% 4112453 4112453
Total 2.7% 278442324 7612723
The loss given default is measured based on the actual credit loss experience in the past 12
months and is adjusted taking into consideration the differences among the economic
conditions during the historical data collection period the current economic conditions and the
economic conditions during the expected lifetime.
(4) Movements of provisions for bad and doubtful debts:
20252024
Balance at the beginning of the year (7612723) (13158448)
Charge for the year (5053219) (3956483)
Recoveries or reversals during the year 4720936 9502208
Balance at the end of the year (7945006) (7612723)
146Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(5) Five largest accounts receivable by debtor at the end of the year:
Percentage of Ending balance
Name Relationship with Balance at thethe Group end of the year Ageing ending balance
of provision for
of others (%) bad and doubtfuldebts
Debtor One Third party 52857155 Within 1 year 19.4% 121673
Debtor Two Third party 13396411 Within 1 year 4.9% 372837
Debtor Three Third party 12822411 Within 1 year 4.7% 383384
Debtor Four Third party 11874833 Within 1 year 4.4% 27335
Debtor Five Third party 11419968 Within 1 year 4.2% 327102
Total 102370778 37.5% 1232331
4 Receivables under financing
Item Note 2025 2024
Bills receivable (1) 228073841 230960211
(1) Pledged bills receivable by the Group at the end of the year:
As at 31 December 2025 there was no pledged bills receivable (31 December 2023:
Nil).
(2) Outstanding endorsed or discounted bills that have not matured at the end of the year
Amount
Item derecognised
at year end
Bank acceptance bills 418066114
As at 31 December 2025 bills endorsed by the Group to other parties which are not yet due at
the end of the period is RMB 418066114 (31 December 2024: RMB 261965866 ). The
notes are used for payment to suppliers and constructions. The Group believes that due to
good reputation of bank the risk of notes not accepting by bank on maturity is very low
therefore derecognise the note receivables endorsed. If the bank is unable to pay the notes
on maturity according to the relevant laws and regulations of China the Group would
undertake limited liability for the notes.
5 Prepayments
(1) Prepayments by category:
Item 2025 2024
Prepayments 54011809 60631575
(2) The ageing analysis of prepayments is as follows:
20252024
Ageing Amount Percentage Percentage(%) Amount (%)
Within 1 year (inclusive) 52950895 98.0% 59383101 97.9%
Over 1 year but within 2 years
(inclusive) - - 1248474 2.1%
Over 2 years but within 3 years 1060914 2.0% - -
147Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(inclusive)
Total 54011809 100.0% 60631575 100.0%
The ageing is counted starting from the date when prepayments are recognised.
(3) Five largest prepayments by debtor at the end of the year:
Ending balance
Name Nature of the Balance at the
Percentage of
receivable end of the year Ageing ending balance
of provision for
of others (%) bad and doubtfuldebts
Debtor One Prepayments 34324571 Within 1 year 63.6% -
Debtor Two Prepayments 6667700 Within 1 year 12.3% -
Debtor Three Prepayments 1590394 Within 1 year 2.9% -
Debtor Four Prepayments 1501066 Within 1 year 2.8% -
Debtor Five Prepayments 1050000 Within 1 year 1.9% -
Total 45133731 83.5% -
6 Other receivables
31 December 2025 31 December 2024
Others 127713309 264598394
(1) Others by customer type:
Customer type 31 December 2025 31 December 2024
Amounts due from other companies 150284639 268325284
Sub-total 150284639 268325284
Less: Provision for bad and doubtful debts (22571330) (3726890)
Total 127713309 264598394
(2) The ageing analysis is as follows:
Ageing 2025 2024
Within 1 year (inclusive) 32124454 227970834
Over 1 year but within 2 years (inclusive) 84888095 583562
Over 2 years but within 3 years (inclusive) 527140 38599235
Over 3 years 32744950 1171653
Sub-total 150284639 268325284
Less: Provision for bad and doubtful debts (22571330) (3726890)
Total 127713309 264598394
The ageing is counted starting from the date when other receivables are recognised.
(3) Movements of provisions for bad and doubtful debts
20252024
Balance at the beginning of the year (3726890) -
Charge for the year (18844440) (3726890)
Balance at the end of the year (22571330) (3726890)
As at 31 December 2025 the Group has no other receivables written off (31 December
2024: Nil).
148Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(4) Others categorised by nature
Nature of other receivables 2025 2024
Compensation receivable for the disposal of
a vineyard (Note) 81666088 200666088
Land purchases and reserves receivable 31768902 37268902
Refund of consumption tax and VAT 18993601 15560239
Deposit 5868084 6163682
Housing maintenance funds 2703605 2640911
Petty cash receivable 45182 28781
Others 9239177 5996681
Sub-total 150284639 268325284
Less: Provision for bad and doubtful debts (22571330) (3726890)
Total 127713309 264598394
Note: The Company signed a Compensation Agreement with the People's Government of
Zhuqiao Town Laizhou City and the People's Government of Yidao Town Laizhou City
(both collectively referred to as the “Transferees”) in December 2024. Pursuant to the
Compensation Agreement the Company transferred assets related to the vineyard in
Zhuqiao Town to the Transferees at an estimated valuation of RMB 221284768 as
consideration (compensation). After deducting compensation totalling RMB 19618680
that have been paid to farmers and collectively owned assets the actual compensation
receivable by the Company amounts to RMB 201666088 (tax inclusive). As of 16 April
2026 the Company has received a total of RMB 125000000 in compensation.
(5) Five largest others-by debtor at the end of the year
Nature of the Balance at the Percentage of
Ending balance
Name receivable end of the year Ageing ending balance
of provision for
of others (%) bad and doubtfuldebts
Compensation
Debtor One receivable for thedisposal of a 81666088 1-2 years 54.3% 8166609
vineyard
Land purchases
Debtor Two and reserves 31768902 Over 3 years 21.1% 14296006
receivable
Debtor Three Refund of VAT 17784087 Within 1 year 11.8% -
Housing
Debtor Four maintenance 2666219 2-3 years 1.8% -
funds
Debtor Five Others 2174305 Within 1 year 1.4% 108715
Total 136059601 90.4% 22571330
149Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
7 Inventories
(1) Inventories by category:
20252024
Item Provision for Provision forBook value impairment of Carrying Carrying
inventories amount
Book value impairment of
inventories amount
Raw materials 277656519 - 277656519 287082056 - 287082056
Work in progress 1876067662 - 1876067662 1921142415 - 1921142415
Finished goods 699103803 (16750775) 682353028 714804585 (18958500) 695846085
Total 2852827984 (16750775) 2836077209 2923029056 (18958500) 2904070556
(2) Provision for impairment of inventories:
Increase during Decrease during Disposal ofsubsidiaries during
Item Opening the year the year Closingbalance the year balance
Recognised Reversal Decrease
Finished
goods 18958500 20750395 (18958500) (3999620) 16750775
8 Other current assets
Item 2025 2024
Input tax to be credited 61109041 63225758
Right to recover returned goods 7166025 13866802
Prepaid income taxes 3745396 1408482
Deferred expenses 2140474 1882199
Sub-total 74160936 80383241
Less: Provision for bad and doubtful debts - -
Total 74160936 80383241
9 Long-term equity investments
(1) Long-term equity investments by category:
Item 2025 2024
Investments in joint ventures 31167177 32797631
Investments in associates 1722455 2067117
Sub-total 32889632 34864748
Less: Provision for impairment (6233435) -
Total 26656197 34864748
150Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Movements of long-term equity investments during the year are as follows:
Movements during the year Balance of
2025 (Losses)/Profits from 2025 provision forInvestee Balance at the New Shareholding
beginning of the year Investment investments under Closing balance
impairment at
the end of the percentageequity-method l year
Joint ventures
SAS L&M Holdings (“L&M Holdings”) 32797631 - (1630454) 31167177 6233435 55%
Associates
Shanghai Yufeng Brand Management Co.Ltd. (Note1) 383720 - 11120
394840-10%
Yantai Guolong Wine Industry Co. Ltd. 757001 - 368 757369(Note1) - 10%
Taizhou Changyu Winery Wine Sales - 570246Co. Ltd.("Taizhou Changyu”). (Note2) 926396 (356150) - 10%
Sub-total 2067117 - (344662) 1722455 -
Total 34864748 - (1975116) 32889632 6233435
Note 1: The Group has appointed one director to each of these investees.Note 2: The Group has appointed two directors to this investee.
151Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
10 Investment properties
Plants and
buildings
Cost
31 December 2024 and 31 December 2025 81165619
Accumulated depreciation
31 December 2024 (59205168)
Charge for the year (2060223)
31 December 2025 (61265391)
Carrying amount
31 December 2025 19900228
31 December 2024 21960451
11 Fixed assets
(1) Fixed assets
Item Plant & buildings Machinery &equipment Motor vehicles Total
Cost
31 December 2024 5857616706 2849771289 22112010 8729500005
Purchases 13915673 54534793 1542630 69993096
Transfers from construction
in progress 13110436 7519994 148767 20779197
Disposals or written-offs during
the year (24176068) (5613489) (570424) (30359981)
Disposal of subsidiaries during
the year (8514910) (214746) (9781) (8739437)
31 December 2025 5851951837 2905997841 23223202 8781172880
Accumulated depreciation
31 December 2024 (1450718306) (1696378973) (20367548) (3167464827)
Charge for the year (157055747) (151375055) (1554978) (309985780)
Disposals or written-offs during
the year 7877779 2536230 399637 10813646
Disposal of subsidiaries during
the year 4587079 9779 9238 4606096
31 December 2025 (1595309195) (1845208019) (21513651) (3462030865)
Provision for impairment
31 December 2024 and 31
December 2025 - (10363383) - (10363383)
Carrying amount
31 December 2025 4256642642 1050426439 1709551 5308778632
31 December 2024 4406898400 1143028933 1744462 5551671795
As at 31 December 2025 ownership restricted net value of fixed assets is RMB 34165994
(31 December 2024: RMB 32467803) referring to Note V. 52.
152Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Temporarily idle fixed assets
Item Cost Accumulated Provision fordepreciation impairment Carrying amount
Machinery equipment 29423698 (19060315) (10363383) -
Total 29423698 (19060315) (10363383) -
(3) Fixed assets leased out under operating leases
Item Carrying amount atthe end of the year
Plant & buildings 83302814
Machinery equipment 931
Fixed assets pending certificates of ownership
Item Carrying amount Reason why thecertificates are pending
Dormitories main building and reception
building of Chateau Changge 250144458 Processing
European town main building and service
building of AFIP 147270890 Processing
Fermentation shop and workshop of Zhangyu
(Ningxia) 769349 Processing
Office experiment building and workshop of
Fermentation Centre 3389424 Processing
Fermentation shop of Zhangyu (Jingyang) 3490263 Processing
Finished goods warehouse and workshop of
Kylin Packaging 1762103 Processing
Others 712724 Processing
The buildings without property certificate above have no significant impact on the Group’s
management.
12 Construction in progress
(1) Construction in progress
20252024
Project Book value Provision for Carryingimpairment amount Book value
Provision for Carrying
impairment amount
Renovation of Chateau Changge 2844037 - 2844037 91743 - 91743
Renovation of the Changyu Wine Culture
Museum 702063 - 702063 - - -
Refurbishment of wine production line
equipment - - - 7202959 - 7202959
Upgrade and renovation of the main
building of Chateau Changyu AFIP - - - 1128971 - 1128971
Other Companies’ Construction Project 766988 - 766988 1753699 - 1753699
Total 4313088 - 4313088 10177372 - 10177372
153Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Movements of major construction projects in progress during the year
Attributable to: Interest
Item Budget Opening Additions Transfers to Other Closing
Percentage of Accumulated Interest rate for Sources of
(RMB million) balance during the year fixed assets transfers out balance actual cost to capitalisedbudget (%) interest capitalised for capitalisation fundingthe year in 2025 (%)
Renovation of Chateau Changge 4 91743 2752294 - - 2844037 79% - - - Self-raised
Renovation of the Changyu Wine
Culture Museum 3 - 702063 - - 702063 26% - - - Self-raised
Refurbishment of wine production
line equipment 9 7202959 113208 (7316167) - - 86% - - - Self-raised
Upgrade and renovation of the
main building of Chateau 3 1128971 1253428 - (2382399) - 80% - - - Self-raised
Changyu AFIP
Industrial park enhancement project for
tourism purpose 12 - 11556851 (11556851) - - 100% - - - Self-raised
154Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
13 Bearer biological assets
Bearer biological assets are vines which measured in cost method.Item Immature Mature biologicalbiological assets assets Total
Original book value
31 December 2024 16596341 107115596 123711937
Additions during the year
- Increase in cultivated 974076 50459 1024535
- Transferred to mature - - -
Decrease during the year - (1408323) (1408323)
31 December 2025 17570417 105757732 123328149
Accumulated amortisation
31 December 2024 - (57227973) (57227973)
Charge for the year - (6437416) (6437416)
Decrease during the year - 435954 435954
31 December 2025 - (63229435) (63229435)
Carrying amount
31 December 2025 17570417 42528297 60098714
31 December 2024 16596341 49887623 66483964
As at 31 December 2025 there is no biological asset with ownership restricted (31 December
2024: Nil).
As at 31 December 2025 no provision for impairment of biological asset of the Group was
recognised as there is no any indication exists (31 December 2024: Nil).
14 Right-of-use assets
As a lessee
Item Plant&buildings Lands Others Total
Cost
Balance at the beginning of
the year 82555594 84681091 1697986 168934671
Additions during the year 2790749 - - 2790749
Decreases during the year (42518483) - (1697986) (44216469)
Balance at the end of the year 42827860 84681091 - 127508951
Accumulated depreciation
Balance at the beginning of
the year (57562203) (37913220) (1697986) (97173409)
Charge for the year (15656522) (2624440) - (18280962)
Decreases during the year 41499943 - 1697986 43197929
Balance at the end of the year (31718782) (40537660) - (72256442)
Carrying amounts
At the end of the year 11109078 44143431 - 55252509
At the beginning of the year 24993391 46767871 - 71761262
155Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
15 Intangible assets
Item Land use rights Software licenses Trademarks Total
Original book value
31 December 2024 444520847 105174442 191250359 740945648
Additions during the year
- Purchase 460557 2171883 422696 3055136
Decreases during the year
- Disposal or retirement - (270056) - (270056)
- Disposal of subsidiaries - (150933) - (150933)
31 December 2025 444981404 106925336 191673055 743579795
Accumulated amortisation
31 December 2024 (114683586) (81965845) (16589834) (213239265)
Additions during the year
- Charge for the year (7209284) (7948008) (2605875) (17763167)
Decreases during the year
- Disposal or retirement - 270056 - 270056
- Disposal of subsidiaries - 83218 - 83218
31 December 2025 (121892870) (89560579) (19195709) (230649158)
Carrying amount
31 December 2025 323088534 17364757 172477346 512930637
31 December 2024 329837261 23208597 174660525 527706383
As at 31 December 2025 the Group has land use right with infinite useful lives of RMB
32719900 (31 December 2024:RMB 32503590) representing the freehold land held by
Chile Indomita Wine Group and Australia Kilikanoon Estate under relevant Chile and Australia
laws on which the amortisation is not required.As at 31 December 2025 the Group’s trademark rights with indefinite useful life consist of
trademark rights held by Via Indómita that was valued at RMB 144921810 (31 December
2024: RMB 144921810) and trademark rights held by Kilikanoon Wines that was valued at
RMB 11818386 (31 December 2024: RMB 11818386). The recoverable amount of the
trademark is determined according to the present value of the expected future cash flows
generated from the asset group to which the single assets of trademark right belongs. The
management prepares the cash flow projection for future 5 years (the “projecting period”)
based on the latest financial budget assumption and estimates the cash flows after the future
5 years (the “subsequent period”). The pretax discount rates applied to cash flow projections
by Via Indómita and Kilikanoon Wines were 12.3% (2024: 12.5%) and 13.1% (2024: 13.6%)
respectively.The estimated long-term average growth rate of cash flows after 5 years is 0.0%
- 2.5% (2024: 0.0% - 2.0%) which represents the long-term average growth rate for the
industry or the region in which the company operates.According to the result of impairment assessment by the end of 31 December 2025 the
management believes there is no impairment loss on those trademarks with infinite useful
lives of the Group (31 December 2024: Nil).As at 31 December 2025 there is no ownership restricted net value of intangible assets. (31
December 2024: Nil ).
156Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
16 Goodwill
(1) Changes in goodwill
Name of investee or events from Note 31 December Additions during Disposals during 31 Decemberwhich goodwill arose 2024 the year the year 2025
Original book value
Etablissements Roullet Fransac
(“Roullet Fransac”) (a)(b) 13112525 - (13112525) -
Hacienda y Viedos Marqués del
Atrio S.L (“Hacienda”) (a) 92391901 - - 92391901
Chile Indomita Wine Group (a) 6870115 - - 6870115
Australia Kilikanoon Estate (a) 37063130 - - 37063130
Sub-total 149437671 - (13112525) 136325146
Impairment provision
Hacienda y Viedos Marqués del
Atrio S.L (“Hacienda”) (11225459) - - (11225459)
Australia Kilikanoon Estate (37063130) - - (37063130)
Sub-total (48288589) - - (48288589)
Carrying amount 101149082 - (13112525) 88036557
(a) The Group acquired Fransac Sales Hacienda and Mirefleurs Chile Indomita Wine
Group and Australia Kilikanoon Estate in December 2013 September 2015 July 2017
and January 2018 respectively resulting in respective goodwill amounting to
RMB13112525 RMB92391901 RMB 6870115 and RMB37063130. The
goodwill had been allocated to corresponding asset groups for impairment testing.(b) In June 2025 the Group transferred 100% equity interest in Etablissements RoulletFransac a wholly-owned subsidiary of Francs Champs Participations SAS (“FrancsChamps”) resulting in a reduction of RMB 13112525 in goodwill.
(2) Provision for impairment of goodwill
The Group has allocated the above goodwill to relevant asset groups for impairment testing.As at 31 December 2025 Australia Kilikanoon Estate has made full provision for impairment
of goodwill and Atrio has made provision for impairment amounted to RMB 11225459 for the
current period.The recoverable amount of the asset group is determined according to the present value of
the expected future cash flows. The management prepares the cash flow projection for
future 5 years (the “projecting period”) based on the latest financial budget assumption and
estimates the cash flows after the future 5 years (the “subsequent period”). The pretax
discount rate used in calculating the recoverable amounts of Hacienda and Mirefleurs
Indomita Wine are 12.6% and 12.3% respectively (2024: 11.7% and 12.5%). The key
assumption is the growth rate of annual revenue of relevant subsidiaries which is computed
based on the expected growth rate of each subsidiary and long-term average growth rates of
relevant industries. The annual revenue growth rates for Dicot Partners SL and Via Indómita
during the budget period were 4.9% to 14.8% and 2.9% to 13.9% respectively; the revenue
growth rates during the stable period were 1.5% and 2.5% respectively. Other relevant key
assumption is budget gross profit margin which is determined based on the historical
performance of each subsidiary and its expectations for market development. The average
gross profit margins for Dicot Partners SL and Via Indómita during the budget period were
42.1% and 40.7% to 45.4% respectively; the average gross profit margins during the stable
period were 42.1% and 45.4% respectively.
157Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
17 Long-term deferred expenses
Item 31 December 2024 Additions Amortisationduring the year for the year 31 December 2025
Land requisition fee 41485895 - (1112922) 40372973
Greening fee 101735181 - (8503625) 93231556
Leasehold improvement 149320615 6422034 (10218302) 145524347
Others 6252011 188822 (2342653) 4098180
Total 298793702 6610856 (22177502) 283227056
18 Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets and liabilities
31 December 2025 31 December 2024
Item Deductible or taxable Deferred tax assets/ Deductible or taxable Deferred tax assets/
temporary differences (liabilities) temporary differences (liabilities)
Deferred tax assets:
Provision for impairment of
assets 57630494 14539423 40661496 10437775
Unrealised profits of
intra-group transactions 416323375 104080844 417770236 104442560
Unpaid bonus 120048950 30012237 123258072 30814518
Termination benefits 5316990 1329247 6739412 1684853
Deductible tax losses 250789836 61117483 280061166 68206780
Deferred income 19386932 4151683 25938817 5540954
Effect of the lease standard 1798945 449737 3462626 865659
Sub-total 871295522 215680654 897891825 221993099
Deferred tax liabilities:
Revaluation due to business
combinations involving
entities not under common 22236051 6435261 24447790 7076871
control
Effect of the lease standard 714534 178633 1069168 267294
Sub-total 22950585 6613894 25516958 7344165
(2) Details of unrecognised deferred tax assets
Item 2025 2024
Deductible tax losses 546736496 478477359
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
Year 2025 2024
2025-70528510
20264552866960274856
2027123557586123557586
2028114766551117444729
2029106434373106671678
2030156449317-
Total 546736496 478477359
158Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
19 Other non-current assets
Item 2025 2024
Prepaid for Construction fee 43735 3554409
20 Short-term loans
Item 2025 2024
Unsecured loans 68518537 63222270
Mortgaged loans 158792031 126552126
Guaranteed loans 13364220 26365950
Total 240674788 216140346
As at 31 December 2025 details of short-term borrowings were as follows:
Interest rate at the
Amount Amount Nature of Interest rateinterest rate end of the year
RMB % %
Mortgaged loans (USD) 12125000 85461852 Fixed 5.34% - 5.85% 5.34% - 5.85%
Credit loans (RMB) 50000000 50000000 Floating 1 YEAR LPR-0.95% 2.11%
Mortgaged loans (EUR) 8904156 73330179 Floating 2.20% -3.10% 2.20% -3.10%
Secured loan (AUD) 2850000 13364220 Floating BBSW+1.50% 5.90%
Credit loans (USD) 1000000 7048400 Fixed 5.65% 5.65%
Credit loans (EUR) 1392768 11470137 Floating 3.00% -3.90% 3.00% -3.90%
Total 240674788
On 31 December 2025 Chile Indomita Wine Group pledged its fixed assets to Banco
Scotiabank and Banco de Chile to borrow USD 12125000 (equivalent to RMB
85461852) (31 December 2024: USD 12375000 (equivalent to RMB 90634266).
As at 31 December 2025 the euro-denominated mortgage borrowing amounted to EUR
8904156 (equivalent to RMB 73330179) (31 December 2024: EUR 4772694
equivalent to RMB 35917860) which arose from accounts receivable factoring arranged
by Dicot Partners SL with banks including Banco Santander BBVA Bankinter.On 31 December 2025 the secured loan represented the secured loan of Australia
Kilikanoon Estate of AUD2850000 (equivalent to RMB 13364220) (31 December 2024:
AUD 5850000 equivalent to RMB 26365950). The guarantee was provided by the
Company for Kilikanoon Wines.
159Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
21 Accounts payable
(1) Details of accounts payable are as follows:
Ageing 2025 2024
Within 1 year (inclusive) 318780204 413307306
Over 1 year but within 2 years (inclusive) 795028 2486147
Over 2 years but within 3 years (inclusive) 748646 372036
Over 3 years 1608290 1344950
Total 321932168 417510439
(2) There is no significant accounts payable with ageing of more than one year.
22 Contract liabilities
Item As at As at31 December 2025 31 December 2024
Receipt in advance 134708926 127855694
Withholding sales rebates 358537 234659
Total 135067463 128090353
Contract liabilities primarily relate to the Group’s advances from sales contracts of specific
customers and the withholding sales rebates. Relevant contract liabilities are recognised as
revenue when the control of the goods is transferred to the customer.
23 Employee benefits payable
(1) Employee benefits payable:
Note 31 December 2024 Additions during Decrease duringthe year the year 31 December 2025
Short-term employee
benefits (2) 159642385 372668332 (375423515) 156887202
Post-employment
benefits - defined (3) 323120 43083160 (43084855) 321425
contribution plans
Termination benefits 6739412 2354473 (3776895) 5316990
Total 166704917 418105965 (422285265) 162525617
160Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Short-term employee benefits
31 December 2024 Additions during Decrease duringthe year the year 31 December 2025
Salaries bonuses
allowances 156491000 322837197 (325398698) 153929499
Staff welfare 1270097 14312577 (14297118) 1285556
Social insurance 302052 19788935 (19892484) 198503
Medical insurance 302020 18584860 (18688447) 198433
Work-related injury
insurance 32 1196720 (1196682) 70
Maternity insurance - 7355 (7355) -
Housing fund 38581 12672209 (12668009) 42781
Labour union fee staff and
workers’ education fee 1540655 3057414 (3167206) 1430863
Total 159642385 372668332 (375423515) 156887202
(3) Post-employment benefits - defined contribution plans
31 December 2024 Additions during Decrease duringthe year the year 31 December 2025
Basic pension insurance 321807 41662642 (41664434) 320015
Unemployment insurance 1313 1420518 (1420421) 1410
Total 323120 43083160 (43084855) 321425
24 Taxes payable
Item 2025 2024
Value-added tax 27831972 39051407
Consumption tax 42140635 40806933
Corporate income tax 69531572 88479855
Individual income tax 786256 828712
Tax on the use of urban land 2302126 2301066
Education surcharges 3221254 3857746
Urban maintenance and construction tax 4495333 5372605
Others 8249786 8448730
Total 158558934 189147054
25 Other payables
Note 31 December 2025 31 December 2024
Others (1) 332855775 398149521
Total 332855775 398149521
161Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(1) Others
(a) Details of others by nature are as follows:
Item 2025 2024
Deposit payable to dealer 156861946 170639777
Advertising fee payable 43523608 44729221
Payables for repurchase of treasury shares 37880941 70704426
Trademarks 17082233 18630742
Freight charges payable 18179784 21041131
Deposits due to suppliers 16393705 16515150
Equipment and construction fee payable 11523560 13160841
Contracting fee payable 3942153 3179094
Staff deposit 1480476 735016
Others 25987369 38814123
Total 332855775 398149521
(b) There are no significant others aged over one year accured this year.
26 Other current liabilities
Item 2025 2024
Refund liabilities arising from rights of return 7613210 16425141
Tax to be transferred out as sales 19580652 24339101
Total 27193862 40764242
27 Non-current liabilities due within one year
Non-current liabilities due within one year by category are as follows:
Item 2025 2024
Long-term loans due within one year 65453059 61161578
Lease liabilities due within one year 9987851 18788191
Total 75440910 79949769
28 Long-term loans
Long-term loans by category
Item Note 2025 2024
Credit loans 117827899 111798781
Less: Long-term loans due
within one year V.27 65453059 61161578
Total 52374840 50637203
162Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
As at 31 December 2025 details of long-term borrowings were as follows:
Amount Nature of
Interest rate Long-term Long-term
Amount interest Interest rate at the end of loans due loans due
rate the year within one after one
RMB % % year year
Credit loans (EUR) 517231 4259657 Fixed 2.80% - 2.80% -4.65% 4.65% 2619989 1639668
Credit loans (EUR) 13790085 113568242 Floating 3.10% - 3.10% -5.83% 5.83% 62833070 50735172
Total 117827899 65453059 52374840
As at 31 December 2025 Credit loans (EUR) were EUR 14307316 borrowed by Banco
Santander BBVA Caja Rural de Navarr Caixa Bank etc. (equivalent of RMB 117827899)
(31 December 2024: EUR14855599 equivalent of RMB 111798781).
29 Lease liabilities
Item Note 2025 2024
Long-term lease liabilities 29425681 46331020
Less: Lease liabilities due within one
year V.27 9987851 18788191
Total 19437830 27542829
The specific arrangement of leases activities of the Group refers to Note 53.
30 Deferred income
Item 31 December 2024 Additions during Decrease duringthe year the year 31 December 2025
Government grants 25938817 1800000 (8351885) 19386932
163Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Government grants:
Additions of Amounts
Liability 31 December 2024 government grants recognised in otherincome during 31 December 2025
Related to
during the year assets/incomethe year
Industrial development support Government
project 8200000 - (4100000) 4100000 grants relatedto assets
Government
Retaining wall subsidies 7847333 1800000 (1245143) 8402190 grants related
to assets
Xinjiang industrial revitalisation Government
and technological 7110000 - (1422000) 5688000 grants related
transformation project to assets
Special fund for efficient Government
water-saving irrigation project 667000 - (162000) 505000 grants relatedto assets
Subsidy for economic and Government
energy-saving technological 256600 - (128300) 128300 grants related
transformation projects to assets
Subsidies for construction of Government
scenic spots 195184 - (43730) 151454 grants relatedto assets
Improvement of service facilities Government
in scenic spots 264000 - (29367) 234633 grants relatedto assets
Technology research and
industrial subsidies for utilizing Related to
China-produced oak for 1398700 - (1221345) 177355 income
winemaking
Total 25938817 1800000 (8351885) 19386932
31 Share capital
Changes during the year
Balance at the
beginning of the Release of Cancellation of Balance at the end
year repurchased of the yearlock-up shares shares
Unrestricted RMB
ordinary shares 455181295 - - 455181295
Restricted RMB
ordinary shares 4639398 - (2153772) 2485626
(Note1)
Foreign shares
listed
domestically 212003207 - (12430000) 199573207
(Note2)
Total shares 671823900 - (14583772) 657240128
164Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Note1: On 25 July 2025 the Group convened its 3rd meeting of the Compensation
Committee the 2nd meeting of the 10th Board of Directors and the 1st meeting of the
9th Board of Supervisors for 2025. During these meetings the following proposals
were deliberated and approved the Proposal on the Failure to Meet the Unlocking
Conditions for the Second Unlocking Period under the Company’s 2023 Restricted
Share Incentive Plan and the Proposal on the Repurchase Cancellation and Price
Adjustment of Certain Restricted Shares under the Company’s 2023 Restricted Share
Incentive Plan. On 12 August 2025 the Group held its first extraordinary general
meeting for 2025 during which the Proposal on the Repurchase Cancellation and
Price Adjustment of Certain Restricted Shares under the Company’s 2023 Restricted
Share Incentive Plan was deliberated and approved. The Group repurchased and
cancelled 289467 restricted shares that had been granted but not yet unlocked due to
departure of incentive recipients or changes in their roles that rendered them no longer
ineligible for the Company’s 2023 Restricted Share Incentive Plan. The Group also
repurchased and cancelled 1864305 restricted shares that failed to unlock as
recipients failed to meet individual performance targets during the second unlocking
period. Consequently a total of 2153772 restricted shared were repurchased and
cancelled. The aforementioned repurchase and cancellation resulted in a decrease of
RMB 2153772 in the Group’s share capital a decrease of RMB 30669713 in capital
reserve and a reduction of RMB 32823485 in treasury shares in 2025.Note2: The Group held the 11th meeting of the 9th Board of Directors on 16 April 2025 and
the 2024 annual general meeting on 23 May 2025 during which the Proposal on
Repurchasing Certain of the Company’s Foreign-Invested Shares Listed in China (B
Shares) was deliberated and approved. Between 25 June 2025 and 8 September
2025 the Group repurchased 12430000 B shares in aggregate by way of call auction
through the special account for repurchase at a total amount of RMB 99855332. The
Group completed de-registration of these B shares with Shenzhen Branch of China
Securities Depository and Clearing Co. Ltd. on 17 December 2025. The transaction
resulted in a decrease of RMB 12430000 in the Group’s share capital a decrease of
RMB 87425332 in capital reserve as well as an increase and subsequent decrease
of RMB 99855332 in treasury shares.
32 Capital reserve
Items Note 31 December
Additions Decrease
2024 during during the
31 December
the year year 2025
Share premium (1) 451532723 - (118095045) 333437678
Others 30610824 - - 30610824
Total 482143547 - (118095045) 364048502
(1) During the reporting period the Group repurchased and cancelled 12430000 B shares
of the Company resulting in a decrease of RMB 87425332 in share premium. Refer to
Note V. 31 for details.During the reporting period the Group repurchased and cancelled 2153772 restricted
shares resulting in a decrease of RMB 30669713 in share premium. See Note V. 31
for details.
165Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
33 Treasury shares
Balance at the
Item beginning of the Additions during Decrease during Balance at the
year the year the year end of the year
Treasury shares 70704426 99855332 (132678817) 37880941
Total 70704426 99855332 (132678817) 37880941
During the reporting period the Group repurchased and cancelled certain restricted shares
due to departure of incentive recipients or changes in their roles that rendered them no longer
ineligible for the Company’s 2023 Restricted Share Incentive Plan. This resulted in a
decrease of RMB 289467 in share capital. The Group also repurchased and cancelled
restricted shares that failed to unlock due to recipients not meeting individual performance
targets during the second unlocking period. This resulted in a decrease of RMB 1864305 in
share capital and a decreased of RMB 32823485 in treasury shares accordingly. For details
see Note V.31.The Group repurchased and cancelled 12430000 B shares resulting in an increase and
decrease in treasury shares of RMB 99855332 respectively during the period. Please refer
to note V.31.
34 Other comprehensive income
Balance at the Accrued during the year Balance at the
beginning of Less: Net-of-tax
the year Previously amount Net-of-tax
end of the
Item attributable to Before-tax recognised Less:
year
attributable to amount
shareholders amount amount Income tax shareholders attributable to
attributable to
shareholders
of the transferred to expenses of the non-controllin of the
Company profit or loss Company g interests Company
Items that may be
reclassified to profit
or loss
Translation
differences
arising from
translation of (39714972) 25903830 - - 23385262 2518568 (16329710)
foreign currency
financial
statements
35 Surplus reserve
Item 31 December 2025 31 December 2024
Statutory surplus reserve 342732000 342732000
In accordance with the Company Law and the Articles of Association Company the Company
appropriated 10% of its net profit to statutory surplus reserve. The appropriation to the
statutory surplus reserve may be ceased when the accumulated appropriation reaches over
50% of the registered capital of the Company. The Company does not appropriate net profit
to the surplus reserve in 2025 as surplus reserve of the Company is above 50% of the
registered capital.The Company can appropriate discretionary surplus reserve after appropriation of the
statutory surplus reserve. Discretionary surplus reserve can be utilised to offset the deficit or
increase the share capital after approval.
166Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
36 Retained earnings
Item Note 2025 2024
Retained earnings at the beginning of the
year 9232928370 9273629318
Add: Net profits for the year attributable to
shareholders of the Company 71291303 305210999
Less: Dividends to ordinary shares (1) (266782075) (345911947)
Retained earnings at the end of the year (2) 9037437598 9232928370
(1) Dividends in respect of ordinary shares declared during the year
As approved by the general meeting of shareholders on May 23 2025 the Company
distributed cash dividends of RMB 0.4 per share (2024: RMB 0.5 per share) to common
shareholders on June 20 2025 totaling RMB268729560 (2024: RMB346124780 ).During the reporting period the Group repurchased and cancelled 2153772 restricted
shares granted under the Group’s Restricted Share Incentive Plan and recovered cash
dividends of RMB 1947485.
(2) Retained earnings at the end of the year
As at 31 December 2025 the consolidated retained earnings attributable to the Company
included an appropriation of RMB 73306833 (2024: RMB 64459076 ) to surplus reserve
made by the subsidiaries.
37 Operating income and operating costs
Item 2025 2024Income Cost Income Cost
Principal activities 2914372110 1300520369 3196761585 1360000070
Other operating activities 74295412 29304632 80516762 32602329
Total 2988667522 1329825001 3277278347 1392602399
Including: Revenue from
contracts with 2982029491 1325520521 3271223512 1387836538
customers
Rent income 6638031 4304480 6054835 4765861
(1) Disaggregation of revenue from contracts with customers:
Type of contract 2025 2024
By type of goods or services
- Liquor 2914372110 3196761585
- Others 67657381 74461927
By timing of transferring goods or services
- Revenue recognised at a point in time 2982029491 3271223512
(2) Geographical regions of operating income and operating costs：
Type of contract 2025 2024Income Cost Income Cost
By geographical regions
167Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
- China 2370215804 962299411 2685914511 1031980984
- Other countries and regions 618451718 367525590 591363836 360621415
Total 2988667522 1329825001 3277278347 1392602399
38 Taxes and surcharges
Item 2025 2024
Consumption tax 172905966 185547704
Urban maintenance and construction tax 22947535 23268173
Education surcharges 15787621 16775249
Property tax 34748272 33918780
Tax on the use of urban land 10030712 9869535
Stamp duty 3489633 4022461
Others 1159661 360727
Total 261069400 273762629
39 Selling and distribution expenses
Item 2025 2024
Marketing fee 299546194 322040390
Salaries and benefits 277687005 294724158
Labour service fee 92140010 86440275
Advertising fee 47593280 63037709
Depreciation expense 48682432 51846831
Design and production fee 13096115 19561846
Travelling expenses 29772083 29989425
Trademarks expenses 16266578 17770743
Storage rental 23496831 25233942
Conference fee 12364580 16578022
Water electricity and gas fee 12753684 12987461
Others 72929769 72769618
Total 946328561 1012980420
40 General and administrative expenses
Item 2025 2024
Salaries and benefits 88580459 96337276
Depreciation expenses 96644282 99816234
Repair costs 11826773 12001516
Administrative expenses 22168941 19512898
Amortisation of greening fee 17123717 17550658
Amortisation expenses 15889274 15903477
Safety production costs 8632180 9793378
Security and cleaning fee 8342417 8593907
Contracting fee 4108056 3913648
Others 27488348 30488889
Total 300804447 313911881
168Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
41 Financial expenses
Item 2025 2024
Interest expenses from loans and payables 17307226 30125387
Interest expenses from lease liabilities 790677 4136343
Interest income from deposits (19698919) (34643667)
Exchange (gains)/losses (14911624) 10911603
Other financial expenses 1165694 2306407
Total (15346946) 12836073
42 Other income
Item 2025 2024 Related toassets/income
Industrial development support project 4100000 4100000 Government grantsrelated to assets
Xinjiang Industrial Revitalization and
Technological Transformation Project 1422000 1422000
Government grants
related to assets
Wine production capacity construction - 1200000 Government grantsproject related to assets
Subsidies for retaining wall 1245143 988000 Government grantsrelated to assets
Others - Government grants related to 363397 396617 Government grantsassets related to assets
Special funds for the development of
enterprises 5230100 16700000 Related to income
Tax rebates 6422149 13297771 Related to income
Regional sales incentive fund 6010625 2800000 Related to income
Wine Industry Development Project 2479000 1224301 Related to income
Technology research and industrial
subsidies for China-produced oak 1221345 1361300 Related to income
wine-making
Talent development funds from Shihezi
government 1200000 2200000 Related to income
Funds for the integration development
project of agricultural industry 284100 536000 Related to income
Others - Government grants related to
income 5159816 6387921 Related to income
Total 35137675 52613910
Other income during reporting period has been included in non-recurring gains and losses.
169Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
43 Investment losses
Investment losses by items
Item 2025 2024
Long-term equity investment losses under
equity method (1975116) (4420872)
Investment profit arising from disposal of
subsidiaries 1041400 -
Total (933716) (4420872)
44 Credit (losses)/reversal
Item 2025 2024
Accounts receivable (332283) 5545725
Other receivable (18844440) (3726890)
Total (19176723) 1818835
45 Impairment losses
Item 2025 2024
Long-term equity investments 6233435 -
Inventories 1791895 1450966
Goodwill - 6014534
Total 8025330 7465500
46 Gains from asset disposals
Item 2025 2024
Gains from asset disposals 307134 132116926
Gains from disposal of assets during reporting period has been included in non-recurring
gains and losses.
47 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
Item 2025 2024
Insurance compensation 672000 1709700
Net income from fine 3029197 1501900
Others 4004827 1766330
Total 7706024 4977930
Non-operating income during reporting period has been included in non-recurring gains and
losses.
170Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Non-operating expenses
Item 2025 2024
Losses from disposal of non-current assets 283885 1868546
Donations provided 714905 1416240
Compensation penalty and fine expenses 1138254 127736
Others 817092 320552
Total 2954136 3733074
Non-operating expenses during reporting period has been included in non-recurring gains and
losses.
48 Income tax expenses
Item Note 2025 2024
Current tax expense for the year based on
tax law and regulations 76177873 115078031
Changes in deferred tax assets/liabilities (1) 5582174 (1850459)
Total 81760047 113227572
(1) The analysis of changes in deferred tax is set out below:
Item 2025 2024
Origination of temporary differences 5582174 (1850459)
Total 5582174 (1850459)
(2) Reconciliation between income tax expenses and accounting profit:
Item 2025 2024
Profit before taxation 156605168 427554857
Estimated income tax at 25% 39151292 106888714
Effect of different tax rates applied by subsidiaries 733961 1503486
Effect of non-taxable income - (25961339)
Effect of non-deductible costs expense and losses 2549072 6891065
Effect of using deductible losses for which no
deferred tax asset was recognized in previous (7637872) (3134547)
periods
Effect of deductible losses of deferred tax assets not
recognised for the year 39112329 25217629
Deferred tax assets written-off 7851265 1822564
Income tax expenses 81760047 113227572
171Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
49 Basic earnings per share and diluted earnings per share
(1) Basic earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to
ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding:
20252024
Consolidated net profit attributable to ordinary
shareholders of the Company 71291303 305210999
Weighted average number of ordinary shares
outstanding 662765035 684370832
Basic earnings per share (RMB/share) 0.11 0.45
Weighted average number of ordinary shares is calculated as follows:
20252024
Issued ordinary shares at the beginning of the year 667184502 685464000
Effect of repurchasing shares (4419467) (1666666)
Effects of unlocking of ordinary shares subject to
sales restrictions - 573498
Weighted average number of ordinary shares at the
end of the year 662765035 684370832
(2) Diluted earnings per share
Diluted earnings per share is calculated by dividing consolidated net profit (diluted)
attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding (diluted):
Note 2025 2024
Consolidated net profit attributable to
ordinary shareholders of the Company (a) 71291303 305210999
(Dilute)
Weighted average number of ordinary
shares outstanding (Dilute) (b) 662765035 684370832
Diluted earnings per share (RMB/share) 0.11 0.45
(a) Consolidated net profit attributable to ordinary shareholders of the Company (diluted) is
calculated as follows:
20252024
Consolidated net profit attributable to
ordinary shareholders of the Company 71291303 305210999
Consolidated net profit attributable to
ordinary shareholders of the Company 71291303 305210999
(diluted)
172Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(b) The weighted average number of the Company’s ordinary shares (diluted) is calculated
as follows:
20252024
Weighted average number of ordinary shares
at 31 December 662765035 684370832
Weighted average number of ordinary shares
(diluted) at the end of the year 662765035 684370832
50 Cash flow statement
(1) Cash relating to operating activities
a. Proceeds relating to other operating activities:
Item 2025 2024
Government grants 28585790 45969993
Interest income from bank 17529757 29707469
Penalty income 3029197 1501900
Others 1153216 3857611
Total 50297960 81036973
b. Payments relating to other operating activities:
Item 2025 2024
Selling and distribution expenses 416258276 512511750
General and administrative expenses 99690432 105557429
Others 24987599 23092431
Total 540936307 641161610
(2) Cash relating to investing activities
a. Proceeds relating to significant investing activities:
Item 2025 2024
Recovery of fixed deposits 93200000 464200000
Disposal of subsidiaries 25831272 -
Total 119031272 464200000
b. Payments relating to significant investing activities:
Item 2025 2024
Investments in fixed deposits 60200000 288650000
Acquisition of fixed assets and construction in
progress 21805284 74604013
Total 82005284 363254013
173Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(3) Cash relating to financing activities
a. Proceeds relating to other financing activities:
Item 2025 2024
Repurchase of treasury shares(Note V.33) 99855332 178084318
Cancellation of restricted shares (Note V.33) 32823485 6487150
Cash paid for lease 20472317 26235103
Payment for acquisition of non-controlling
interests - 16506915
Total 153151134 227313486
b. Changes in liabilities arising from financing activities
Balance at the Additions during the year Decreases during the year Balance at the
beginning of end of
the year Cash Non-cash Cash Non-cash the year
Short-term loan 216140346 461506851 - (433053481) (3918928) 240674788
Long-term loan 50637203 65811218 - - (64073581) 52374840
Lease liabilities 27542829 - 3581426 (1684125) (10002300) 19437830
Non-current liabilities due
within one year 79949769 - 74061432 (78570291) - 75440910
Other accounts payable -
dividends payable - - 274909214 (274909214) - -
Other accounts payable -
interest payable - - 18097903 (18097903) - -
Other accounts payable -
payables for repurchase of 70704426 - 99855332 (132678817) - 37880941
treasury shares
Total 444974573 527318069 470505307 (938993831) (77994809) 425809309
174Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
51 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
a. Reconciliation of net profit to cash flows from operating activities:
Item 2025 2024
Net profit 74845121 314327285
Add: Credit/asset impairment losses 27202053 5646665
Depreciation of fixed assets and
investment property 312046003 302028852
Amortisation of intangible assets 17763167 18740240
Amortisation of long-term deferred
expenses 22177502 21658422
Amortisation of productive biological
assets 6437416 13833533
Depreciation of ROU assets 18280962 20744479
Profits from disposal of fixed assets
intangible assets and other long-term (307134) (132116926)
assets
Financial expenses 15325664 32778256
Equity incentive reversal - (4016467)
Investment losses 933716 4420872
Decrease/(increase) in deferred tax
assets 6312445 (474895)
Decrease in deferred tax liabilities (730271) (1375564)
Decrease/(increase) in gross
inventories 61122950 (140130935)
(Increase)/decrease in operating
receivables (32106931) 268230903
(Decrease) in operating payables (173479204) (326553653)
Net cash flows from operating activities 355823459 397741067
b. Significant investing and financing activities not requiring the use of cash:
Item 2025 2024
Payment of construction in progress and other
long-term assets by bank acceptances 40268965 37753184
c. Change in cash and cash equivalents:
Item 2025 2024
Cash equivalents at the end of the year 1839128089 1717727551
Less:Cash equivalents at the beginning of the
year 1717727551 1963155752
Net increase /(decrease) in cash and cash
equivalents 121400538 (245428201)
175Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Details of cash and cash equivalents
Item 2025 2024
Cash at bank and on hand
Including: Cash on hand 18877 27228
Bank deposits available on demand 1839109212 1717700323
Closing balance of cash and cash equivalents 1839128089 1717727551
52 Assets with restrictive ownership title or right of use
Item Opening balance Balance at theend of the year Reason for restriction
The Company deposits and
Cash at bank and on hand 1470579 4110000 Escrow account for migrant
workers' wages etc.Account receivable (i) 35917860 73330179 Short-term borrowingsmortgage from Atrio
Fixed assets 32467803 34165994 Short-term borrowings fromHacienda
Total 69856242 111606173
(i) As at 31 December 2025 the amount of accounts receivable with restricted ownership
is EUR 8904156 equivalent of RMB 73330179 hich refers to accounts receivable
Atrio conducted for factoring from Banco de Sabadell S.A. Etc. (31 December 2024:
EUR 4772694 equivalent of RMB 35917860).
53 Leases
(1) As a lessee
Item 2025 2024
Short-term lease expenses for which the
practical expedient has been applied 245034 386346
Total cash outflow for leases 21124354 26621449
The Group leases buildings and motor vehicles with the lease terms of 1 year or less and all
of these leases are short-term leases. The Group has elected not to recognise right-of-use
assets and lease liabilities for these leases.
(2) As a lessor
Item 2025 2024
Lease income 6638031 6054835
The Group leased out some machineries in 2023 and 2024 with a lease term within 1
year. The Group has classified these leases as operating leases because they do not
transfer substantially all of the risks and rewards incidental to the ownership of the
assets.
176Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The undiscounted lease receipts to be received by the Group after the balance sheet date are
as follows:
Item 2025 2024
Within 1 year (inclusive) 5217303 5872890
Over 1 year but within 2 years (inclusive) 5195284 5872890
Over 2 years but within 3 years (inclusive) 1376147 5850872
Over 3 years but within 4 years (inclusive) - 1941507
Total 11788734 19538159
VI. Research and development expenses
Presentation by nature
Item 2025 2024
Salaries 7557252 7362919
Diagnostic test fees 2882115 2600375
Consultancy fee 1511544 1412609
Material consumption 5960086 4242275
Others 3531822 3920065
Total 21442819 19538243
Including: research and development expenditures
that are expensed 21442819 19538243
177Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
VII. Change of consolidation scope
1 Disposal of subsidiaries
Transactions or events resulting in loss of control over subsidiaries
Difference between
consideration Fair value of
Name of Shareholding being Disposal method on received and the
Proportion of remaining equity
enterprise Date of losing control
Consideration on the Basis for determining remaining interests on the date
date of losing control disposed on the date the date of losing related share of netof losing control (%) control date of losing control assets in shareholding on the of losing control in
consolidated financial date of losing control consolidated financial
statements statements
Roullet-Fransac 26 September 2025 EUR 3309500 100% Equity transfer Control transfer RMB 1041400 - -
The Group recognised a gain of RMB1041400 on disposal of Roullet-Fransac resulting in loss of control which has been included
in investment income of the consolidated financial statements.
2 Other reasons for change of consolidation scope
The Group deregistered and liquidated its subsidiary Tianjin Zhangyu Yixin Digital Technology Co. Ltd. on 20 August 2025. Following the
completion of the liquidation and distribution of the remaining assets of Yixin Digital the Group’s mon-controlling interests decreased by RMB
6834267 accordingly.
178Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
VIII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
Shareholding ratio
Name of the Subsidiary Principal place of Business (%)business Registered place nature Registered capital (or similar equity Acquisition method
interest)
Hacienda y Viedos Marqués del Atrio S.L Navarre Spain Navarre Spain Marketing and
Business combinations
(“Hacienda”) sales EUR2000000 90 - involving entities not undercommon control
Via Indómita S.A. Via Dos Andes S.A.and BodegasSantaAlicia SpA.. (“Chile Santiago Chile Santiago Chile Marketing andsales CLP31100000000 85 -Acquired throughIndomita Wine Group”) establishment or investment
Kilikanoon Estate Pty Ltd. Adelaide Australia Adelaide Australia Marketing and
Business combinations
(“Australia Kilikanoon Estate”) sales AUD6420000 99 - involving entities not undercommon control
Beijing Changyu Sales and Distribution
Co. Ltd. (“Beijing Sales”) Beijing China Beijing China
Marketing and RMB1000000 100 - Acquired throughsales establishment or investment
Yantai Kylin Packaging Co. Ltd. Yantai Shandong Yantai Shandong Manufacturing RMB15410000 100 - Acquired through(“Kylin Packaging”) China China establishment or investment
Yantai Chateau Changyu-Castel Co. Yantai Shandong Yantai Shandong Manufacturing USD5000000 70 - Acquired throughLtd.(“Chateau Changyu”) (a) China China establishment or investment
Changyu (Jingyang) Wine Co. Ltd. Xianyang Shaanxi Xianyang Shaanxi
(“Jingyang Wine”) China China Manufacturing RMB1000000 90 10
Acquired through
establishment or investment
Yantai Changyu Pioneer Wine Sales Yantai Shandong Yantai Shandong Marketing and Acquired through
Co. Ltd. (“Sales Company”) China China sales RMB8000000 100 - establishment or investment
Shanghai Changyu Sales and Distribution
Co. Ltd. (“Shanghai Sales”) Shanghai China Shanghai China
Marketing and RMB1000000 100 - Acquired throughsales establishment or investmentYantai Changyu Wine Sales Co. Ltd. (“Wines Yantai Shandong Yantai Shandong Marketing andSales”) China China sales RMB5000000 90 10
Acquired through
establishment or investment
Yantai Changyu Pioneer International Yantai Shandong Yantai Shandong Marketing and Acquired through
Co. Ltd. (“Pioneer International”) China China sales RMB5000000 70 30 establishment or investment
Hangzhou Changyu Wine Sales Co. Ltd. Hangzhou Zhejiang Hangzhou Zhejiang Marketing and
(“Hangzhou Changyu”) China China sales RMB500000 - 100
Acquired through
establishment or investment
Ningxia Changyu Grape Growing Co. Ltd. Yinchuan Ningxia Acquired through
(“Ningxia Growing”) China Ningxia China Plating RMB1000000 100 - establishment or investment
179Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Shareholding ratio
Name of the Subsidiary Principal place ofbusiness Registered place
Business
nature Registered capital
(%)
(or similar equity Acquisition method
interest)
Huanren Changyu National Wines Sales Co.Ltd. (“National Wines”) Benxi Liaoning China
Benxi Liaoning Marketing and
China sales RMB2000000 100 -
Acquired through
establishment or investment
Liaoning Changyu Golden Icewine Valley Co. Benxi Liaoning Acquired through
Ltd. (“Golden Icewine Valley”) Benxi Liaoning China China Manufacturing RMB64687300 100 - establishment or investment
Yantai Development Zone Changyu Trading Yantai Shandong Yantai Shandong Marketing and Acquired through
Co. Ltd. (“Development Zone Trading”) China China sales RMB5000000 - 100 establishment or investment
Beijing AFIP Meeting Center
(“Meeting Center”) Miyun Beijing China
Miyun Beijing
China Services RMB500000 - 100
Acquired through
establishment or investment
Beijing AFIP Tourism and Culture Miyun Beijing China Miyun Beijing(“AFIP Tourism”) China Tourism RMB500000 - 100
Acquired through
establishment or investment
Changyu (Ningxia) Wine Co. Ltd. Acquired through
(“Ningxia Wine”) Ningxia China Ningxia China Manufacturing RMB1000000 100 - establishment or investment
Yantai Changyu Chateau Tinlot Co. Ltd. Yantai Shandong Yantai Shandong Wholesale and Acquired through
(“Chateau Tinlot”) China China retail RMB400000000 65 35 establishment or investment
Xinjiang Chateau Changyu Baron Balboa Co. Shihezi Xinjiang Shihezi Xinjiang Manufacturing RMB550000000 100 - Acquired throughLtd. (“Chateau Shihezi”) China China establishment or investment
Ningxia Chateau Changyu Moser XV Yinchuan Ningxia Yinchuan Ningxia Acquired through
Co. Ltd. (“Chateau Ningxia”) China China Manufacturing RMB2000000 100 - establishment or investment
Shaanxi Chateau Changyu Changge Co. Ltd. Xianyang Shaanxi Xianyang Shaanxi Acquired through
(" Chateau Changge ") China China Manufacturing RMB20000000 100 - establishment or investment
Yantai Changyu Wine Research &
Development Centre Co. Ltd. Yantai Shandong Yantai Shandong Manufacturing RMB805000000 100 - Acquired through
(“R&D Centre”) China China establishment or investment
Xinjiang Changyu Sales Co. Ltd. Shihezi Xinjiang Shihezi Xinjiang Marketing and Acquired through
(“Xinjiang Sales”) China China sales RMB10000000 - 100 establishment or investment
Ningxia Changyu Trading Co. Ltd. Yinchuan Ningxia Yinchuan Ningxia Marketing and RMB1000000 - 100 Acquired through(“Ningxia Trading”) China China sales establishment or investment
Shaanxi Changyu Rena Wine Sales Xianyang Shaanxi Xianyang Shaanxi Marketing and Acquired through
Co. Ltd. (“Shanxi Sales”) China China sales RMB3000000 - 100 establishment or investment
Penglai Changyu Wine Sales Co. Penglai Shandong Penglai Shandong Marketing and
Ltd.(“Penglai Sales”) China China sales RMB5000000 - 100
Acquired through
establishment or investment
Laizhou Changyu Wine Sales Co. Ltd. Laizhou Shandong Laizhou Shandong Marketing and
(“Laizhou Sales”) China China sales RMB1000000 - 100
Acquired through
establishment or investment
Francs Champs Participations SAS Cognac France Cognac France Investment(“Francs Champs”) and trading EUR32000000 100 -
Acquired through
establishment or investment
Yantai Roullet Fransac Wine Sales Co. Ltd. Yantai Shandong Yantai Shandong Marketing and
(“Yantai Roullet Fransac”) China China sales RMB1000000 - 100
Acquired through
establishment or investmentYantai Changyu Wine Sales Co. Ltd. (“Wine Yantai Shandong Yantai Shandong Marketing andSales Company”) China China sales RMB5000000 100 -
Acquired through
establishment or investment
180Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Shareholding ratio
Name of the Subsidiary Principal place of Registered place Businessbusiness nature Registered capital
(%)
(or similar equity Acquisition method
interest)
Shaanxi Chateau Changyu Rena Tourism Xianxin Shaanxi Xianxin Shaanxi
Co. Ltd. (“Chateau Tourism”) China China Tourism RMB1000000 - 100
Acquired through
establishment or investment
Longkou Changyu Wine Sales Co. Ltd. Yantai Shandong Yantai Shandong Marketing and Acquired through
(“Longkou Sales”) China China sales RMB1000000 - 100 establishment or investment
Yantai Changyu Cultural Tourism
Development Co. Ltd. Yantai Shandong Yantai ShandongChina China Tourism RMB10000000 100 -
Acquired through(“Culture Development “) establishment or investmentBeijing Changyu AFIP Agriculturedevelopment Co. Ltd. (“Agriculture Miyun Beijing China Miyun Beijing Marketing andChina sales RMB1000000 - 100Acquired throughDevelopment”) establishment or investment
Beijing Chateau Changyu AFIP Global
Co. Ltd. (“AFIP”) (b) Beijing China Beijing China Manufacturing RMB642750000 92 -
Acquired through
establishment or investment
Yantai Changyu Wine Culture Museum Co. Yantai Shandong Yantai Shandong
Ltd. (“Museum”) China China Tourism RMB500000 - 100
Acquired through
establishment or investment
Yantai Changyu Culture Tourism Production Yantai Shandong Yantai Shandong Tourism RMB5000000 - 100 Acquired throughSales Co. Ltd. (“Culture Sales”) China China establishment or investment
Yantai Changyu International Window of the
Wine City Co. Ltd. Yantai Shandong Yantai Shandong Acquired through
(“Window of the Wine City”) China China
Tourism RMB60000000 - 100 establishment or investment
Yantai KOYA Brandy Chateau Co. Ltd. Yantai Shandong Yantai Shandong Acquired through
(“Chateau KOYA”) China China Manufacturing RMB10000000 100 - establishment or investment
Changyu (Shanghai) International Digital
Marketing Center Limited Shanghai China Shanghai China Marketing and Acquired through
(“Digital Marketing”) sales
RMB50000000 100 - establishment or investment
Shanghai Changyu Guoqu Digital Technology
Co. Ltd. Shanghai China Shanghai China Marketing and RMB6000000 - 51 Acquired through
(“Shanghai Guoqu”) sales establishment or investment
Shanghai Changyu Yixin Digital Technology
Co. Ltd. (“Shanghai Yixin”) Shanghai China Shanghai China
Marketing and
sales RMB10000000 - 51
Acquired through
establishment or investment
Yantai Creighton Catering Company Limited Yantai Shandong Yantai Shandong
(“Creighton Catering”) China China Services RMB1000000 - 100
Acquired through
establishment or investment
Weimeisi (Shanghai) Enterprise Development Marketing and Acquired through
Co. Ltd (“Weimeisi Shanghai”) Shanghai China Shanghai China sales RMB10000000 100 - establishment or investment
Ningxia Longyu Food Trading Co. Ltd. Yinchuan Ningxia Yinchuan Ningxia Marketing and
("Ningxia Longyu") China China sales RMB500000 100 -
Acquired through
establishment or investment
Beijing Changyu Trading Co. Ltd. ("Beijing Miyun Beijing China Miyun Beijing Marketing and RMB500000 100 - Acquired throughTrading") China sales establishment or investment
Huanren Zhangyu Wine Ethnic Liquor Sales Benxi Liaoning. Marketing and Acquired through
Co. Ltd. (“Huanren Sales”) Benxi Liaoning. China China sales RMB2000000 100 - establishment or investment
181Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Shareholding ratio
Name of the Subsidiary Principal place of Registered place Businessbusiness nature Registered capital
(%)
(or similar equity Acquisition method
interest)
Shanghai Zhangyu Yixin Yida E-commerce Hongkou Shanghai Hongkou Shanghai Acquired through
Co. Ltd. ("Shanghai Yixin Yida") China China Services RMB500000 100 - establishment or investment
Reasons for the inconsistency between the proportion of shareholdings in a subsidiary and the proportion of voting rights:
(a) Chateau Changyu is a Sino-foreign joint venture established by the Company and a foreign investor accounting for 70% of Changyu
Chateau’s equity interest. Through agreement arrangement the Company has the full power to control Changyu Chateau’s strategic
operating investing and financing policies. The agreement arrangement is terminated on 31 December 2027.(b) AFIP is a limited liability company established by Yantai De'an Investment Co. Ltd and Beijing Qinglang Ecological Agricultural Technology
Development Co. Ltd. After the equity change the Company holds 91.53% of its equity. Through agreement arrangement the Company
has the full power to control AFIP’s strategic operating investing and financing policies. The agreement arrangement will be terminated
on 2 September 2027.
(2) Material non-wholly owned subsidiaries
Proportion of ownership Comprehensive income Dividend declared to Balance of
Name of the Subsidiary interest held by attributable to non-controlling
non-controlling interests non-controlling interests shareholders
non-controlling interests
for the year during the year at the end of the year
AFIP 8.47% - - 56409393
IWCC 15.00% 1986915 883855 57789439
182Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries without
offsetting internal transactions but with adjustments made for the fair value adjustment at the
acquisition date and any differences in accounting policies:
AFIP Chile Indomita Wine Group
2025202420252024
Current assets 264880703 256982569 239483768 237880401
Non-current assets 354205457 373266371 306248010 306022908
Total assets 619086160 630248940 545731778 543903309
Current liabilities 19136401 16704310 144442947 150938775
Non-current liabilities 3645340 3708917 8468264 7497696
Total liabilities 22781741 20413227 152911211 158436471
Operating income 67106362 81045348 227567761 222156497
Net (loss)/profit (13659294) (8859147) 7780198 11847093
Total comprehensive
income (13659294) (8859147) 13246098 2428528
Cash flows from operating activities 168621 12596851 12958085 19487568
IX. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in the
normal course of the Group’s operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
The following mainly presents information about the Group’s exposure to each of the above
risks and their sources their changes during the year and the Group’s objectives policies
and processes for measuring and managing risks and their changes during the year.The Group aims to seek appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Group’s financial performance. Based on such objectives the Group’s risk
management policies are established to identify and analyse the risks faced by the Group to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities.
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.
183Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The Group's maximum credit risk exposure is the carrying amount of each financial asset
(including derivative financial instruments) in the balance sheet.In order to minimise the credit risk the Group has adopted a policy to ensure that all sales
customers have good credit records. According to the policy of the Group credit review is
required for clients who require credit transactions. In addition the Group continuously
monitors the balance of account receivable to ensure there’s no exposure to significant bad
debt risks. For transactions that are not denominated in the functional currency of the
relevant operating unit the Group does not offer credit terms without the specific approval of
the Department of Credit Control in the Group. In addition the Group reviews the
recoverable amount of each individual trade debt at each balance sheet date to ensure that
adequate impairment losses are made for irrecoverable amounts. In this regard the
management of the Group considers that the Group’s credit risk is significantly reduced.Since the Group trades only with recognised and creditworthy third parties there is no
requirement for collateral. Concentrations of credit risk are managed by
customer/counterparty by geographical region and by industry sector. As at 31 December
2025 37.5% of the Group trade receivables are due from top five customers (31 December
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 Company and its individual
subsidiaries are responsible for their own cash management including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands (subject to
approval by the Company’s board when the borrowings exceed certain predetermined levels).The Group’s policy is to regularly monitor its liquidity requirements and its compliance with
lending covenants to ensure that it maintains sufficient reserves of cash readily realisable
marketable securities and adequate committed lines of funding from major financial
institutions to meet its liquidity requirements in the short and longer term.The following tables set out the remaining contractual maturities at the balance sheet date of
the Group’s financial liabilities which are based on contractual undiscounted cash flows
(including interest payments computed using contractual rates or if floating based on rates
current at the balance sheet date) and the earliest date the Group can be required to pay:
2025 Contractual undiscounted cash flow Carrying
Item amount atWithin 1 year or More than
on demand 1 to 2 years 2 years but less
More than Total balance sheet
than 5 years 5 years date
Short-term loans 243345139 - - - 243345139 240674788
Accounts payable 321932168 - - - 321932168 321932168
Other payables 332855775 - - - 332855775 332855775
Long-term loans (including the
portion due within one year) 68651364 26399241 28552669 - 123603274 117827899
Lease liability (including the
portion due within one year) 11147721 4221591 10387294 12439306 38195912 29425681
Total 977932167 30620832 38939963 12439306 1059932268 1042716311
184Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
2024 Contractual undiscounted cash flow Carrying
Item More than amount atWithin 1 year or More than balance sheet
on demand 1 to 2 years 2 years but less Totalthan 5 years 5 years date
Short-term loans 219471784 - - - 219471784 216140346
Accounts payable 417510439 - - - 417510439 417510439
Other payables 398149521 - - - 398149521 398149521
Long-term loans (including the
portion due within one year) 34442156 21327296 66175216 - 121944668 111798781
Lease liability (including the
portion due within one year) 20108712 10585667 11049349 15155422 56899150 46331020
Total 1089682612 31912963 77224565 15155422 1213975562 1189930107
3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk respectively. The Group determines
the appropriate weightings of the fixed and floating rate interest-bearing instruments based on
the current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure.
(1) As at 31 December the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
20252024
Item Effective interest Amounts Effective interestrate rate Amounts
Financial assets
- Cash at bank 1.30% - 2.25% 45650000 1.70% - 2.25% 78650000
Financial liabilities
- Short-term loans 5.34% - 5.85% (92510252) 5.53% - 5.94% (97958247)
- Long-term loans (including the
portion due within one year) 2.80% - 4.65% (4259657) 2.80% - 4.65% (6342368)
- Lease liability (including the
portion due within one year) 4.65% (29425681) 4.65% (46331020)
Total (80545590) (71981635)
Variable rate instruments:
20252024
Item Effective interest Amounts Effective interestrate rate Amounts
Financial assets
- Cash at bank 0.01% - 0.55% 1843219212 0.20% - 0.35% 1718853538
Financial liabilities
- Short-term loans 1Year LPR - 0.89% (500000001) Year LPR - 0.95% (50000000)
- Short-term loans BBSW + 1.5% (13364220) BBSW+1.5% (26365950)
- Short-term loans 2.20% - 3.90% (84800316) 3.41% - 4.65% (41816149)
- Long-term loans (including the
portion due within one year) 3.10% - 5.83% (113568242) 3.41% - 7.59% (105456413)
Total 1581486434 1495215026
(2) Sensitivity analysis
Management of the Group believes interest rate risk on bank deposit is not significant
therefore does not disclose sensitivity analysis for interest rate risk.
185Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
As at 31 December 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 981498 (2024: RMB838644) and net profit by RMB 981498 (2023:
RMB 838644 ).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 annualised 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 31 December the Group’s exposure to main 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.
20252024
Balance at foreign Balance at RMB Balance at foreign Balance at RMB
currency equivalent currency equivalent
Cash at bank and on hand
- USD 832131 5848885 906574 6516817
- EUR 41398 340929 62611 471195
- HKD 2 1 2 1
Short-term loans
- USD 13125000 92510252 13375000 97958247
(2) The following are the exchange rates for Renminbi against foreign currencies applied by the
Group:
Average rate Balance sheet datemid-spot rate
2025202420252024
USD 7.1429 7.1217 7.0288 7.1884
EUR 8.0965 7.7248 8.2355 7.5257
HKD 0.9162 0.9127 0.9032 0.9260
186Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(3) Sensitivity analysis
Assuming all other risk variables remained constant a 5% strengthening of the Renminbi
against the US dollar Euro dollar and HK dollar at 31 December 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:
Equity Net profit
31 December 2025
USD 3253771 3253771
EUR (12543) (12543)
Total 3241228 3241228
31 December 2024
USD 3433649 3433649
EUR (17200) (17200)
Total 3416449 3416449
A 5% weakening of the Renminbi against the US dollar Euro dollar and HK dollar at 31
December would have had the equal but opposite effect to the amounts shown above on the
basis that all other variables remained constant.X. 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 31 December 2025 and 31 December 2024.
187Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
XI. Related parties and related party transactions
1 Information about the parent of the Company
Company name Registeredplace Business nature Registered capital
Shareholding Percentage of Ultimate controlling party of the
percentage (%) voting rights (%) Company
Jointly controlled by Yantai GuoFeng
Investment Holding Ltd ILLVA
Changyu Group Yantai Manufacturing 50000000 52.6% 52.6% SARONNO HOLDING SPAInternational Finance Corporation and
Yantai Yuhua Investment and
Development Company Limited.The registered capital of the parent company did not change in 2025 while the parent company’s shareholding percentage and proportion of
voting rights changed from 51.4% to 52.6%.
188Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Company refer to Note VIII.1.
3 Information on other related parties
Name of other related parties Related party relationship
Yantai Shenma Packaging Co. Ltd. Controlled by the same parent
(“Shenma Packaging”) company
Yantai Zhongya Zhibao Pharmaceutical Co. Ltd. Information on the Group’s directors
(“Zhongya Zhibao”) supervisors and the seniormanagement
Shanghai Yufeng Brand Management Co.Ltd.("Shanghai Yufeng”) Associate of the Group
Taizhou Changyu Winery Wine Sales Co.Ltd.("Taizhou Changyu”) Associate of the GroupYantai Guolong Wine Industry Co. Ltd (“YantaiGuolong”) Associate of the Group
Societe Civile Argricole Du Chateau De Mirefleurs
(“Mirefleurs”) Subsidiaries of the joint venture
Chateau De Liversan (“ Liversan”) Subsidiaries of the joint venture
Yantai Changyu Wine Culture Museum ("Museum") Non profit organizations associatedwith the company
4 Transactions with related parties
(1) Product procurement
Related parties Nature of transaction 2025 2024
Shenma Packaging Product procurement 55481477 67118462
Zhongya Zhibao Product procurement 46437 63910
Mirefleurs Product procurement 9702697 5940476
Liversan Product procurement 8216340 2997312
Total 73446951 76120160
(2) Sales of goods
Related parties Nature of transaction 2025 2024
Zhongya Zhibao Sales of goods 5458840 4977296
Shanghai Yufeng Sales of goods 2472563 1747006
Shenma Packaging Sales of goods 120679 119317
Yantai Guolong Sales of goods - 13221519
Taizhou Changyu Sales of goods 6252913 4329478
Total 14304995 24394616
189Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(3) Purchase of fixed assets
Related parties of the Company Nature of transaction 2025 2024
Shenma Packaging Purchase of fixedassets 670556 219821
Total 670556 219821
(4) Leases
(a) As the lessor
Name of lessee Type of assets Lease income Lease incomeleased recognised in 2025 recognised in 2024
Shenma Packaging Offices and plants 1492550 1549410
Zhongya Zhibao Offices and plants 928440 963810
Museum Offices 1146789 382110
Total 3567779 2895330
(b) As the lessee
Name of lessor Type of assets Lease expense Lease expenseleased recognised in 2025 recognised in 2024
Changyu Group Office buildings 1479663 1548899
Changyu Group Offices and plants 1338387 1396340
Changyu Group Offices and plants 4015162 4189020
Changyu Group Offices andcommercial building 6172168 6484558
Total 13005380 13618817
(5) Remuneration of key management personnel
Item 2025 2024
Remuneration of key management personnel 7054185 10298399
(6) Other related party transactions
Related parties Nature of transaction 2025 2024
Changyu Group Trademarks 16266578 17770743
Pursuant to a royalty agreement dated 18 May 1997 starting from 18 September 1997 the
Group may use certain trademarks of Changyu Group which have been registered with the
PRC Trademark Office. An annual royalty fee at 2% of the Group’s annual sales is payable
to Changyu Group. The license is effective until the expiry of the registration of the
trademarks.On 18 May 2019 the general meeting of shareholders approved the proposal of the
amendment to the royalty agreement. Article 6.1 of the royalty agreement with Changyu
Group was amended to: During the validity period of this contract the Group pays Changyu
Group royalty on an annual basis. The royalty is calculated based on 0.98% of the sales
volume of the Group ‘s contract products using this trademark. The article 6.3 is amended
to: The royalty paid to the Changyu Group by the Group shall not be used to promote this
trademark and the contract products.The Group incurred a trademark usage fee of RMB16266578 this year.
190Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
5 Receivables from and payables to related parties
Receivables from related parties
20252024
Item Related party Provision for Provision forBook value bad and Book value bad and
doubtful debts doubtful debts
Accounts receivable Zhongya Zhibao - - 1041839 1126
Accounts receivable Museum - - 416500 450
Prepayments Mirefleurs - - 5346651 -
Prepayments Shenma Packaging - - 112579 -
Payables to related parties
Item Related party 2025 2024
Accounts payable Shenma Packaging 25095928 20649261
Accounts payable Zhongya Zhibao 1572709 1133362
Accounts payable Shanghai Yufeng 61365 7318
Accounts payable Mirefleurs 744426 -
Contract liabilities Taizhou Changyu - 5927230
Contract liabilities Yantai Guolong 51696 51696
Contract liabilities Shenma Packaging 11835 11835
Contract liabilities Changyu Group 41964 -
Other payables Changyu Group 17082233 18630742
Other payables Shenma Packaging 400000 400000
Other payables Yantai Guolong 50000 50000
XII. Capital management
The Group’s primary objectives when managing capital are to safeguard its ability to continue
as a going concern so that it can continue to provide returns for shareholders by pricing
products and services commensurately with the level of risk and by securing access to
finance at a reasonable cost.The Group’s capital structure is regularly reviewed and managed to achieve an optimal
structure and return for shareholders. Factors for the Group’s consideration include: its
future funding requirements capital efficiency actual and expected profitability expected
cash flows and expected capital expenditure. Adjustments are made to the capital structure
in light of changes in economic conditions affecting the Group.Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.
191Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
XIII. Share-based payments
1 Equity instruments
(1) Share options or other equity instruments outstanding at the end of the year
Type of grantees Granted during the year Exercised during the year Unlocked during the year Forfeited during the yearQuantity Amount Quantity Amount Quantity Amount Quantity Amount
Some directors the
senior
management the
middle - - - - - - 2153772 32823485
management and
core technical
(operational) cadre
(2) Equity-settled share-based payments
Pursuant to the Proposal on the Company’s 2023 Restricted Share Incentive Plan (Draft) and
Relevant Summary and the Proposal on the Request for the Authorisation to the Board of
Directors by the General Meetings of Shareholders to Handle Matters related to the
Company’s 2023 Restricted Share Incentive Plan passed by resolutions in the Group’s 2022
General Meetings of Shareholders held on 26 May 2023 as well as the Proposal on the
Adjustments to Matters related to 2023 Restricted Share Incentive Plan and the Proposal on
the Granting of Restricted Shares to Incentive Objects under the 2023 Restricted Share
Incentive Plan reviewed and passed in the 2023 first extraordinary Board meeting held on 26
June 2023 the Group determined to grant 6850000 restricted shares to 204 incentive
objects at a grant price of RMB15.24 per share on 26 June 2023 (the grant date). A total of
203 incentive objects of the Group actually subscribed for 6785559 restricted shares at a
grant price of RMB15.24 per share. The transaction increased the Company’s registered
capital by RMB6785559 increased the capital reserve by RMB96626360.All restricted shares granted to incentive objects are subject to different restricted sales
periods which are respectively 12 months 24 months and 36 months from the date of
completion of the grant registration of the restricted shares granted to the incentive objects.The restricted shares granted to the incentive objects under the Restricted Share Incentive
Plan shall not be transferred pledged as collateral or to repay debts during the restricted
sales periods. All restricted shares granted to incentive objects will be unlocked in three
phases after 12 months from the grant date with the proportion of unlocking in each phase
being 30% 30% and 40% respectively corresponding to unlocking dates of one year two
years and three years from the grant date. The actual unlocked shares shall be linked to the
performance appraisal for each year.When the Company’s performance meets the corresponding criteria the unlocking proportion
of the above-mentioned restricted shares is determined based on the business performance
of the incentive object’s operation and the contribution value of the incentive object. The
Company will repurchase the locked restricted shares at the granted price of the incentive
objects if the unlocked criteria stipulated in this plan are not met and the incentive object
shall not unlock the restricted shares for the current period.
192Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
The Group convened the Second Meeting of the Remuneration Committee of the Board of
Directors for 2024 the Fourth Extraordinary Board Meeting for 2024 and the Second
Extraordinary Supervisory Committee Meeting for 2024 on 22 July 2024 at which the
Proposal on Satisfaction of the Release of Lock-up Shares Granted under the Company’s
2023 Restricted Share Incentive Plan in the First Unlocking Period and the Proposal on the
Repurchase and Cancellation of Certain Restricted Shares Granted under the Company’s
2023 Restricted Share Incentive Plan and Adjustment of Repurchase Price were reviewed
and approved. The Proposal on the Repurchase and Cancellation of Certain Restricted
Shares Granted under the Company’s 2023 Restricted Share Incentive Plan and Adjustment
of Repurchase Price was reviewed and approved according to the resolution of the Third
Extraordinary General Meeting on 8 August 2024. 172 incentive participants held the first
tranche of restricted shares eligible for unlocking in 2024 and the total number of restricted
shares unlocked was 1720495. These unlocked shares were listed and traded on 6 August
2024. The transaction resulted in a decrease of RMB26220343 in treasury shares. Some
incentive participants no longer met the conditions of the Company’s 2023 Restricted Share
Incentive Plan as they have left the Company due to individual reasons or got job transfer
and 157790 restricted shares that have been granted to them but not yet unlocked were
repurchased and cancelled. 267876 restricted shares that cannot be unlocked during the first
unlocking period due to personal performance appraisal results were repurchased and
cancelled. The number of restricted shares that have been repurchased and cancelled were
425666 in total. The transaction resulted in a decrease of RMB425666 in the Group’s share
capital a decrease of RMB6061484 in capital reserve and a decrease of RMB 6487150 in
treasury shares.On 25 July 2025 the Group convened its 3rd meeting of the Compensation Committee the
2nd meeting of the 10th Board of Directors and the 1st meeting of the 9th Board of
Supervisors for 2025. During these meetings the following proposals were deliberated and
approved the Proposal on the Failure to Meet the Unlocking Conditions for the Second
Unlocking Period under the Company’s 2023 Restricted Share Incentive Plan and the
Proposal on the Repurchase Cancellation and Price Adjustment of Certain Restricted
Shares under the Company’s 2023 Restricted Share Incentive Plan. On 12 August 2025 the
Group held its first extraordinary general meeting for 2025 during which the Proposal on the
Repurchase Cancellation and Price Adjustment of Certain Restricted Shares under the
Company’s 2023 Restricted Share Incentive Plan was deliberated and approved. The Group
repurchased and cancelled 289467 restricted shares that had been granted but not yet
unlocked due to departure of incentive recipients or changes in their roles that rendered them
no longer ineligible for the Company’s 2023 Restricted Share Incentive Plan. The Group also
repurchased and cancelled 1864305 restricted shares that failed to unlock as recipients
failed to meet individual performance targets during the second unlocking period.Consequently a total of 2153772 restricted shared were repurchased and cancelled. The
aforementioned repurchase and cancellation resulted in a decrease of RMB 2153772 in the
Group’s share capital a decrease of RMB 30669713 in capital reserve in 2025
As at 31 December 2025 the accumulated amount of equity-settled share-based payments
recognised in the capital reserve amounted to RMB26719287.
193Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
XIV. Commitments and contingencies
1 Significant commitment
Capital commitments
Item 2025 2024
Long-term assets acquisition commitment 24302000 41228000
Total 24302000 41228000
2 Contingencies
The Group do not have any significant contingencies as at balance sheet date.XV. Subsequent events
1 Distribution of dividends on ordinary shares approved after the balance sheet date
According to the proposal of the Board of Directors on 16 April 2026 the Company intends
to distribute cash dividend totaling RMB164310032 to all shareholders of 657240128
capital shares for the year ended 31 December 2025 on the basis of RMB 2.5 (including tax)
for every 10 shares. The proposal is subject to the approval by the Shareholders’ meeting.This distribution of profit in cash has not been recognised as a liability at the balance sheet
date.XVI. Other significant items
1 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
organisation structure management requirements and internal reporting system the Group’s
operation is divided into five parts: China Spain France Chile and Australia. The
management periodically evaluates segment results in order to allocate resources and
evaluate performances. In 2025 over 79% of revenue more than 83% of profit and over
91% of non-current assets derived from China/are located in China. Therefore the Group
does not need to disclose additional segment report information.
194Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
XVII. Notes to the Company’s financial statements
1 Receivables under financing
Item Note 2025 2024
Bills receivable (1) 49858915 13110297
Total 49858915 13110297
(1) The pledged bills receivable of the Company at the end of the year
As at 31 December 2025 there was no pledged bills receivable (31 December 2024: Nil).
(2) Outstanding derecognised endorsed bills that have not matured at the end of the year
Amount
Item recognised at year
end
Bank acceptance bills 72512409
Total 72512409
As at 31 December 2025 derecognised bills endorsed by the Company to other parties which
are not yet due at the end of the period is RMB 72512409 (31 December 2024: RMB
60323326). The notes are used for payment to suppliers. The Company believes that
due to good reputation of bank the risk of notes not accepting by bank on maturity is very
low therefore derecognise the note receivables endorsed. If the bank is unable to pay the
notes on maturity according to the relevant laws and regulations of China the Company
would undertake limited liability for the notes.
2 Other receivables
Note 31 December 2025 31 December 2024
Dividends receivable (1) 20000000 130000000
Others (2) 686617690 822762563
Total 706617690 952762563
(1) Dividends receivable
Item 31 December 2025 31 December 2024
Dividends to subsidiaries 20000000 130000000
Total 20000000 130000000
195Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Others
(a) Others by customer type:
Customer type 31 December 2025 31 December 2024
Amounts due from subsidiaries 606611486 615371507
Amounts due from related parties 88172813 207391056
Sub-total 694784299 822762563
Less: Provision for bad and doubtful debts (8166609) -
Total 686617690 822762563
(b) The ageing analysis is as follows:
Ageing 2025 2024
Within 1 year (inclusive) 417489585 822658091
Over 1 year but within 2 years (inclusive) 277192978 -
Over 2 years but within 3 years (inclusive) - -
Over 3 years 101736 104472
Sub-total 694784299 822762563
Less: Provision for bad and doubtful debts (8166609) -
Total 686617690 822762563
The ageing is counted starting from the date.(c) Movements of provisions for bad and doubtful debts
As at 31 December 2025 Other provision for bad and doubtful debts amounted to RMB
8166609 (31 December 2024: Nil).
As at 31 December 2025 the Company has no other receivables written off (31
December 2024: Nil).(d) Others categorised by nature
Nature of other receivables 2025 2024
Amounts due from subsidiaries 606611486 615371507
Compensation receivable for the disposal of a
vineyard 81666088 200666088
Others 6506725 6724968
Sub-total 694784299 822762563
Less: Provision for bad and doubtful debts (8166609) -
Total 686617690 822762563
196Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(e) Five largest others-by debtor at the end of the year
Ending balance
Debtor Nature of the Balance at the
Percentage of
receivable end of the year Ageing ending balance
of provision for
of others (%) bad and doubtfuldebts
Hacienda Amounts due 142100399 Within 1 year andfrom subsidiaries 1-2 years 20.5% -
Sales Company Amounts duefrom subsidiaries 63279604 Within 1 year 9.1% -
Compensation
Company I receivable for thedisposal of a 81666088 1-2 years 11.8% 8166609
vineyard
Kilikanoon Australia Amounts due Within 1 year andfrom subsidiaries 53098070 1-2 years 7.6% -
Chateau Changge Amounts duefrom subsidiaries 30947513 Within 1 year 4.5% -
Total 371091674 53.5% 8166609
3 Long-term equity investments
(1) Long-term equity investments by category:
20252024
Item Book value Provision for Carrying Provision for Carryingimpairment amount Book value impairment amount
Investments in
subsidiaries 7737521508 (97669546) 7639851962 7737521508 (48288589) 7689232919
Total 7737521508 (97669546) 7639851962 7737521508 (48288589) 7689232919
197Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Investments in subsidiaries:
Balance at the
Subsidiary beginning of Additions during Decrease Balance at the
Balance of provision
the year during the year end of the year for impairment at thethe year end of the year
Kylin Packaging 23553931 - - 23553931 -
Chateau Changyu 29281772 - - 29281772 -
Pioneer International 4464714 - - 4464714 -
Ningxia Growing 36573247 - - 36573247 -
National Wines 2000000 - - 2000000 -
Golden Icewine Valley 85638472 - - 85638472 -
Chateau Beijing 588648215 - - 588648215 -
Sales Company 18952112 - - 18952112 -
Wine Sales 5109166 - - 5109166 -
Shanghai Marketing 1000000 - - 1000000 -
Beijing Sales 850000 - - 850000 -
Jingyang Wine 900000 - - 900000 -
Ningxia Wine 222309388 - - 222309388 -
Chateau Ningxia 453760284 - - 453760284 -
Chateau Tinlot 212039586 - - 212039586 -
Chateau Shihezi 812311899 - - 812311899 -
Chateau Changan 804205930 - - 804205930 49380957
R&D Centre 3290268550 - - 3290268550 -
Wine Sales Company 5105130 - - 5105130 -
Francs Champs 236025404 - - 236025404 -
Hacienda 233142269 - - 233142269 11225459
Chile Indomita Wine Group 274248114 - - 274248114 -
Australia Kilikanoon Estate 131159177 - - 131159177 37063130
Digital Marketing 50191439 - - 50191439 -
Chateau Koya 110337503 - - 110337503 -
Shanghai Weimeisi 7910985 - - 7910985 -
Culture Development 92649560 - - 92649560 -
Development Zone Trading 837605 - - 837605 -
Penglai sales 831612 - - 831612 -
Longkou sales 1611286 - - 1611286 -
Laizhou sales 87342 - - 87342 -
Yantai Roullet Fransac 251196 - - 251196 -
Museum 265162 - - 265162 -
Window of the Wine City 470134 - - 470134 -
AFIP Tourism 162952 - - 162952 -
Meeting Center 102210 - - 102210 -
Ningxia Trading 162952 - - 162952 -
Creighton Catering 102210 - - 102210 -
Total 7737521508 - - 7737521508 97669546
For information about the subsidiaries of the Company refer to Note VIII.
198Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
4 Operating income and operating costs
Item 2025 2024Income Cost Income Cost
Principal activities 479686072 418859723 557517562 494323439
Other operating activities 5327691 2778616 4561209 2555898
Total 485013763 421638339 562078771 496879337
Including: Revenue from contracts
with customers 479686072 418859723 557517562 494323439
Rent income 5327691 2778616 4561209 2555898
Disaggregation of revenue from contracts with customers:
Type of contract 2025 2024
By type of goods or services
- Liquor 479686072 557517562
By timing of transferring goods or services
- Revenue recognised at a point in time 479686072 557517562
5 Investment income
Item 2025 2024
Income from long-term equity investments
accounted for using cost method 314258098 368167007
Total 314258098 368167007
6 Transactions with related parties
(1) Product procurement
Related parties Nature of transaction 2025 2024
Subsidiary of the parent
company Product procurement 170332744 214788248
Other related parties of the
Company Product procurement 25068903 36256009
Total 195401647 251044257
199Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Sales of goods
Related parties Nature of transaction 2025 2024
Subsidiary of the parent
company Sales of goods 515192619 590568772
Other related parties of the
Company Sales of goods 3654837 3626159
Total 518847456 594194931
(3) Guarantee
The Company as the guarantor
Guarantee holder Currency Amount of Inception date of Maturity date of Guaranteeguarantee guarantee guarantee expired (Y/N)
Australia Kilikanoon Estate AUD 5850000 1 September 2023 2 March 2026 N
(4) Leases
(a) As the lessor
Name of lessee Type of assets leased Lease income Lease incomerecognised in 2025 recognised in 2024
Other related parties of
the Company Offices and plants 2420990 2513220
Subsidiary of the parent
company Offices buildings 82569 85714
Total 2503559 2598934
(b) As the lessee
Name of lessor Type of assets leased Lease expense Lease expenserecognised in 2025 recognised in 2024
Other related parties of
the Company Office buildings 1338387 1396340
Total Office buildings 1338387 1396340
7 Receivables from and payables to related parties
Receivables from related parties
20252024
Item Related party Provision for Provision forBook value bad and Book value bad and
doubtful debts doubtful debts
Accounts receivables Other related partiesof the Company - - 227042 245
Prepayments Other related partiesof the Company - - 5344237 -
Other receivables Subsidiary of theparent company 626611486 - 745371507 -
Other non-current assets Subsidiary of theparent company 1812430000 - 1864430000 -
200Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
Payables to related parties
Item Related party 2025 2024
Accounts payable Other related parties ofthe Company 4247251 5528108
Other payables Subsidiary of theparent company 483448133 441845995
Other payables Other related parties ofthe Company 400000 400000
XVIII. Extraordinary gains and losses in 2025
Item Amount
(1) Profit and loss from disposal of non-current assets 1348534
Government grants recognised through profit or loss (except for
those which are closely related to the company’s normal
(2) operations which the company is entitled to under establishedstandards in accordance with government policies and which 35137675
have a continuing impact on the profits and losses of the
company)
(3) Other non-operating income and expenses besides items above 4751888
Sub-total 41238097
(4) Tax effect (4473472)
(5) Effect on non-controlling interests after taxation (4601496)
Total 32163129
Note: Extraordinary gain and loss items (1) to (3) listed above are presented in the amount
before taxation.XIX. Return on net assets and earnings per share
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share please refer to Note V.49.
201Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as dividing
consolidated net profit excluding extraordinary gain and loss attributable to ordinary
shareholders of the Company by the weighted average number of ordinary shares
outstanding:
20252024
Consolidated net profit attributable to ordinary
shareholders of the Company 71291303 305210999
Extraordinary gains and losses attributable to
ordinary shareholders of the Company 32163129 174145642
Consolidated net profit excluding extraordinary gain
and loss attributable to the Company’s ordinary 39128174 131065357
equity shareholders
Weighted average number of ordinary shares
outstanding 662765035 684370832
Basic earnings per share excluding extraordinary
gain and loss (RMB/share) 0.06 0.19
(3) Diluted earnings per share
For calculation of the diluted earnings per share please refer to Note V.49.
(4) Diluted earnings per share excluding extraordinary gains and losses
Diluted earnings per share excluding extraordinary gains and losses is calculated by dividing
consolidated net profit excluding extraordinary gains and losses attributable to ordinary
shareholders of the Company (diluted) by the weighted average number of ordinary shares
outstanding (diluted):
20252024
Consolidated net profit attributable to ordinary
shareholders of the Company (diluted) 71291303 305210999
Extraordinary gains and losses attributable to
ordinary shareholders of the Company 32163129 174145642
Consolidated net profit excluding extraordinary
gains and losses attributable to the Company’s 39128174 131065357
ordinary equity shareholders (diluted)
Weighted average number of ordinary shares
outstanding (diluted) 662765035 684370832
Diluted earnings per share excluding extraordinary
gains and losses (RMB/share) 0.06 0.19
2 Calculation of weighted average return on net assets
202Yantai Changyu Pioneer Wine Co. Ltd. 2025 Annual Report
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profit
attributable to ordinary shareholders of the Company by the weighted average amount of
consolidated net assets:
20252024
Consolidated net profit attributable to ordinary
shareholders of the Company 71291303 305210999
Weighted average amount of consolidated net
assets 10497191719 10773554817
Weighted average return on net assets 0.68% 2.83%
Calculation of weighted average amount of consolidated net assets is as follows:
20252024
Consolidated net assets at the beginning of the year 10619208419 10841500988
Effect of consolidated net profit attributable to
ordinary shareholders of the Company 47338283 140140353
Effects of Restricted Share Incentive Plan - 9251615
Acquisition of non-controlling interests - (715809)
Effect of shares repurchased (Note V.33) (35963946) (14840361)
Effect of cash dividends (Note V.36) (133391037) (201781969)
Weighted average amount of consolidated net
assets 10497191719 10773554817
(2) Weighted average return on net assets excluding extraordinary gain and loss
Weighted average return on net assets excluding extraordinary gain and loss is calculated as
dividing consolidated net profit excluding extraordinary gain and loss attributable to ordinary
shareholders of the Company by the weighted average amount of consolidated net assets:
20252024
Consolidated net profit excluding extraordinary gain
and loss attributable to the Company’s ordinary 39128174 131065357
equity shareholders
Weighted average amount of consolidated net
assets 10497191719 10773554817
Weighted average return on net assets excluding
extraordinary gain and loss 0.37% 1.22%
Yantai Changyu Pioneer Wine Co. Ltd.Board of Directors
April 18 2026
203
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