Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Co. Ltd.2024 Annual Report
Final 2025-01
April 18 2025
1Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 ............................ 35
V、Environmental and Social Responsibility .......... 63
VI、Major issues .................................... 66
VII、Changes in Shares and Shareholders’ Situation .. 75
VIII、Related Situation of Preferred Shares ......... 85
IX、Related Situation of Bonds ...................... 85
X、Financial Report ................................. 85
2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
I. Important Notice Contents and Definition
The board of directors，the board of supervisors，directors supervisors and senior executives of theCompany 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) Mr. Jianxun Jiang (Person in charge of
accounting work) and Ms. Cuimei Guo (Person in charge of accounting organ & Accountant in
charge) assure the truthfulness accuracy and completeness of the financial report in the annual
report.Whether some of the directors did not attend the board meeting to review the annual report in
person
□Yes □No
Except for the following directors other directors attended this board meeting for reviewing this
annual report in person.Name of director not attending Position of director not attending Reason of not attending the
Name of entrustee
the meeting personally the meeting personally meeting personally
Xunzhang LIU Director On a business trip Hongjiang ZHOU
Enrico Sivieri Director On a business trip Marco Giovanni Ferrari
Stefano Battioni Director On a business trip Jianxun JIANG
Huirong LIU Independent director On a business trip Qinglin LIU
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 671823900 shares the
Company plans to pay CNY4 (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. 2024 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. 2024 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. 2024 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
Shenzhen Stock Exchange (http://www.szse.cn)
disclosing annual report
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. 2024 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
No
controlling shareholders (if have)
5. Other relevant information
The accounting firm appointed by the Company
Name KPMG Huazhen LLP
Level 8 No.2 East Wing of Dongfang Square No.1 East Chang’an
Address
Street Beijing
Name of signatory accountants Jia WANG Hui JIANG
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. 2024 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
202420232022
with last year (%)
Operating revenue (CNY) 3277278347 4384764335 -25.26% 3918941160
Net profit attributed to shareholders
305210999532438907-42.68%428681411
of the listed company (CNY)
Net profit attributed to shareholders
of the listed company after
131065357464073693-71.76%413831359
deducting non-recurring profits and
losses (CNY)
Net cash flows from operating
3977410671173091743-66.09%868876647
activities (CNY)
Basic earnings per share (CNY) 0.45 0.78 -42.31% 0.63
Diluted earnings per share (CNY) 0.45 0.78 -42.31% 0.63
Weighted average for earning rate
2.83%4.98%-2.15%4.09%
of net assets
December 31 December 31 Increase/decrease compared December 31
2024 2023 with last year-end (%) 2022
Total assets (CNY) 12520474218 13336267204 -6.12% 13171506378
Net assets attributed to shareholders
1061920841910841500988-2.05%10579053733
of the listed company (CNY)
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
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
8Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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 810827748 711481688 674991354 1079977557
Net profit attributed to shareholders of the
15894680262230580277675081256867
listed company
Net profit attributed to shareholders of the
listed company after deducting non-recurring 154033406 40850475 -2876947 -60941577
profits and losses
Net cash flows from operating activities -65346151 269226515 -21606340 215467043
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
9. Item and amount of non-recurring profit and loss
□Applicable □Inapplicable
Unit：CNY
Item 2024 2023 2022 Explanation
Profits and losses on disposal of non-current assets (including
13211692623852237-18902024
the provision for asset 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 52613910 51523799 33145440
policy provisions and in accordance with certain standard quota
or ration continued to enjoy)
Other non-operating revenues and expenditures in addition to
124485691374204750614
the aforementioned items
Less：Income tax effect 6873074 13643745 4695173
Minority shareholders’ equity effect (after taxes) 4956976 2504497 -551195
Total 174145642 68365214 14850052 --
9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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.
1 0Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
III. Management Discussion and Analysis
1. Situation of industry in which the Company operates during the report period
In 2024 in the face of increasingly competitive business environment the Company persisted intaking the market as the center adhered to the development strategy of “Focus on middle-and-highlevel Focus on high quality Focus on large single product” and the marketing philosophy of
“obtaining growth from the terminal and nurturing consumers” increased the performance
assessment of marketing personnel concentrated on the development of key markets and
maintained the leading position in the industry but failed to achieve isolation and bucking the trend.In 2024 the Company realized the operating revenue of CNY3277.28million with a year-on-year
decrease of 25.26% and the net profit attributable to the parent company’s shareholders of
CNY305.21million with a year-on-year decrease of 42.68%.
2. 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 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
Producer name Food Obtaining time Obtaining method Food production license
1 1Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
category number
Yantai Changyu Pioneer Wine Co. Approval from SC11537060100050
Alcohol 2021.06.01
Ltd. government authority
Beijing Chateau Changyu AFIP Approval from SC11511280920745
Alcohol 2022.08.22
Global Co. Ltd. government authority
Liaoning Changyu Golden Icewine Approval from SC11521052200370
Alcohol 2021.03.25
Valley Co. Ltd. government authority
Ningxia Chateau Changyu Moser Approval from SC11564010500657
Alcohol 2018.01.25
XV Co. Ltd. government authority
Xinjiang Chateau Changyu Baron Approval from SC11565900100392
Alcohol 2017.08.25
Balboa Co. Ltd. government authority
Yantai Chateau Changyu-Castel Approval from SC11537063600172
Alcohol 2021.06.08
Co. Ltd. government authority
Shaanxi Chateau Changyu Rena Approval from SC11561040400532
Alcohol 2020.10.19
Co. Ltd. government authority
Yantai Chateau Koya Brandy Co. Approval from SC11537063601165
Alcohol 2021.01.11
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 this Number at the end
Region
beginning of 2024 report period of 2024
20651352200
Eastern China
1 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
South China
Central China
North China
Northwest China
Southwest China
Northeast China
HongKong MacaoTaiwan 707 92 799
and overseas
50591215180
Total
(2) The Company and distributors took cash spot settlement and mainly adopted buyout
distribution mode.
20242023
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 2773310799 1173187606 57.70% 3725067921 1499834836 59.74%
Direct sales 503967548 219414793 56.46% 659696414 287148821 56.47%
Total 3277278347 1392602399 57.51% 4384764335 1786983657 59.25%
The ratio of sales in self-owned exclusive shop exceeds 10%
□Applicable □Inapplicable
Sales of online direct selling
□Applicable □Inapplicable
20242023
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 2773310799 1173187606 57.70% 3725067921 1499834836 59.74%
Direct sales 503967548 219414793 56.46% 659696414 287148821 56.47%
Total 3277278347 1392602399 57.51% 4384764335 1786983657 59.25%
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
1 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
□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 730133696
Tender/Price determined by quality comparison with standard price items Packaging materials 412056172
Tender/Price determined by quality comparison with standard price items Brewing materials 22078462
Tender/Price determined by quality comparison with standard price items Vineyard supplies 5266152
Contract Fuel and power 39583895
Price determined by quality comparison with standard price items Other wines and derivatives 13403691
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total procedure
amount
□Applicable □Inapplicable
The year-on-year change in the price of major outsourced raw materials exceeds 30%
□Applicable □Inapplicable
Major production mode
The production mode of the Company is self-produce.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.
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
1 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
distributors and the online sales platform has had a certain scale and strong influence owing strong
marketing ability and market exploitation ability.Thirdly the Company has strong scientific prowess and a product R&D system. Relying on the
country’s “State-level Wine R&D Center” the Company has owned powerful winemaker team
mastered advanced winemaking technology and production processes and had strong product
innovation capacity and perfect quality control system.Fourthly the Company is in possession of a lot of grape-growing bases that are compatible with its
development requirements. The Company has developed a great deal of vineyards in the most
suitable areas for wine grape growing such as Shandong Ningxia and Xinjiang and its subsidiary
overseas enterprises also own matching grape bases in local area making the overall scale and
structure generally meet the Company’s needs for future development.Fifthly products in high medium and low-grade as well as varieties and categories are all complete.Over 100 varieties of series products such as wine brandy and sparkling wine covers various grades
including high medium and low-grade which can meet different 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 Cause of significant changes
during this period over
1 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
last year
Operating revenue -25.26% Mainly due to the decrease in sales volume
Operating cost -22.07% Mainly due to the decrease in sales volume
Mainly due to the decreased marketing expense resulting
Sales expense -18.29%
from decreased market investment
Management expense 3.26% No significant changes
Mainly due to the increase in the cost of testing and
R&D expense 12.20% consumable materials resulting from the increased
Company’s R&D efforts.Financial expense 15.81% Mainly due to higher exchange losses.Net amount of cash flow generated Mainly due to the decrease in operating income during the
-66.09%
in operating activities year.Net amount of cash flow generated
inapplicable Mainly due to the increase in recovery of investment.in investment activities
Mainly due to the decrease in cash received from
Net amount of cash flow generated
-53.49% investment absorption and the increase in cash expenditure
in financing activities
for B shares bought back during the year.Review and summary of the process of the Company’s early-disclosed development strategy and
business plan during the report periodDuring the report period the company adhered to the purpose of “Securing Survival StrengtheningFoundations Pursuing Innovations” took a series of active measures vigorously promoted all
aspects of innovation seeking to reverse the situation through the development of new products and
new customers. Although it laid a better foundation for the Company’s better and faster
development in future the results were unsatisfactory failing to realize the business objectives
determined at the beginning of the year. The Company realized the annual operating income of
CNY3277.28million with a year-on-year decrease of 25.26% and the net profit attributable to
shareholders of the parent company of CNY305.21million with a year-on-year decrease of 42.68%.The major work done in 2024 were as follows.First the Company kept innovating in products and marketing striving to reverse the decline
through innovation. The Company’s “Liquan” series of brandy products were launched in the
markets of Guangdong and Shandong. In the marketing and promotion in local markets such as
Linyi Shandong it achieved a breakthrough for the first time laying a foundation for the
development and breakthrough of brandy. A dedicated operation system for Grappie was
established to explore new scenarios with a new team striving to create the first bottle of wine for
young people. The Company systematically sorted out its sweet wine products and established the
positioning of “a bit sweet” for Chateau Rena making the development plan clearer. The new
Noble Dragon N188 product was launched to help upgrade the brand. The new Koya XXO
especially for the Year of the Snake was globally launched in Kuala Lumpur Malaysia showcasing
the charm of Changyu’s national brand and enhancing the brand's stickiness with consumers. The
1 6Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual ReportCompany newly obtained 3 national invention patents including “A screening method forNortheast Mongolian oak for aging high-quality brandy”. The project “Research andindustrialization of technology for aging wine and brandy with domestic oak” was approved as a
major scientific and technological innovation project in Shandong Province. The research“Construction of the characteristic flavor expression system and innovation of the aging process ofChangyu Koya Brandy” won the first-class award of the China Alcoholic Drinks Association's
2023 Annual Science and Technology Award contributing to Yantai being awarded the title of
“China’s Brandy Capital” by the China National Light Industry Council. Changyu Industrial Park
was opened for free tourism attracting more tourists to visit the Company which was widely
praised by tourists greatly enhancing the company’s and brand’s reputation. The Company also
carried out the repurchase and cancellation of partial B shares in an orderly manner striving to
improve the return on assets.Second the Company continuously improved the system construction of the sales business
divisions. The Longyu Business Division adhered to the brand positioning and strived to break
through in specific customer circles to shapes the image of a high-end Chinese wine brand; The
Chateau Wine Business Division further unified the ideological understanding focused on the
brands of AFIP and Castel accelerated the construction of the circle-based distributor system and
actively conducted circle marketing activities centered on the prescribed marketing actions; The
Noble Dragon Business Division adhered to banquet promotion focused on 6 core products and
established and improved the operation and guarantee system for core products; The Imported
Wine Business Division had a clearer positioning of overseas chateaus in the Chinese market
improved the sales systems for different brands and actively explored the market; The Brandy
Business Division firmly adhered to the focused strategy steadily promoted digital construction
improved and promoted the construction of the Koya Experience Hall strengthened marketing
promotion and enhanced brand influence; The Online Business Division increased the sales efforts
for products such as Grappie to strive to cultivate new growth points; the Tourism Business
Division effectively empowered the brand while generating revenue. The wine culture museum was
successively rated as one of the top ten innovative venues for cultural and tourism integration in the
country and a national first-class museum and successfully completed the on-site observation
activity of the Shandong Industrial Tourism Promotion Conference.Third the Company adhered to the bottom-line of safe production continuously improved product
quality and resolutely refrained from crossing the red line. The Company ensured safe production
continuously promoted the work of investigating and rectifying potential major accident hazards
increased the intensity of safety inspections and assessments strengthened emergency knowledge
training and improved emergency response capabilities. As a result it was once again rated as a
“Golden Shield Enterprise” for safe production in the light industry of Shandong Province and was
recognized as an excellent organizing unit for the “Safe Production Month” activity by the Work
Safety Committee of the Shandong Provincial Government. The Company established a qualitymanagement model centered on “standard guidance full-process traceability and digitalempowerment”. It continuously improved internal control standards strengthened process
management further clarified the division of responsibilities strictly imposed penalties and held
1 7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
people accountable and continuously enhanced product quality.Throughout the year the Company
won 78 awards at or above the gold award level.Fourth the Company strengthened financial management and enhanced audit supervision. The
Company completed the audit of the authenticity of profits the integrity and effectiveness of assets
in the production and sales systems for the year 2023. It also completed the departure audits of 22
unit managers in the sales system and special audits such as those on advertising expenses and held
the responsible persons accountable.The Company strengthened fund management and strived to
save financing costs. It increased interest income through methods such as structured deposits and
negotiated deposits. Moreover the Company strengthened financial supervision over overseas
enterprises tried its best to help them solve financing difficulties improved their performance
appraisal methods and ensured the healthy operation of overseas enterprises.
(2) Revenue and cost
* Composition of operating revenue
Unit: CNY
2024 2023 Year-on-year
Proportion in Proportion in increase or
Amount Amount
operating revenue operating revenue decrease (%)
Total operating revenue 3277278347 100% 4384764335 100% -25.26%
Sector-classified
Sector of liquor and
3277278347100%4384764335100%-25.26%
alcoholic beverage
Product-classified
Wine 2438454334 74.40% 3139234808 71.59% -22.32%
Brandy 740131229 22.58% 1152841194 26.29% -35.80%
Tourism 80672837 2.46% 82987641 1.89% -2.79%
Others 18019947 0.55% 9700692 0.22% 85.76%
Area-classified
Domestic 2685914511 81.96% 3761534793 85.79% -28.60%
Overseas 591363836 18.04% 623229542 14.21% -5.11%
Sales model- classified
Distribution 2773310799 84.62% 3725067921 84.95% -25.55%
Direct sales 503967548 15.38% 659696414 15.05% -23.61%
* 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
Operating Gross Year-on-year Year-on-year Year-on-year
Operating cost
revenue margin increase or increase or increase or
1 8Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross profit rate
Industry-classified
Industry of liquor
and alcoholic 3277278347 1392602399 57.51% -25.26% -22.07% -2.93%
beverage
Product-classified
Wine 2438454334 1040715873 57.32% -22.32% -19.06% -2.91%
Brandy 740131229 308940869 58.26% -35.80% -32.91% -2.99%
Tourism 80672837 33691823 58.24% -2.79% -4.86% 1.59%
Others 18019947 9253834 48.65% 85.76% 75.58% 6.52%
Area-classified
Domestic 2685914511 1031980984 61.58% -28.60% -25.13% -2.81%
Overseas 591363836 360621415 39.02% -5.11% -11.76% 13.36%
Sales model- classified
Distribution 2773310799 1173187606 57.70% -25.55% -21.78% -3.41%
Direct sales 503967548 219414793 56.46% -23.61% -23.59% -0.02%
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 2024 2023 Year-on-year increase or decrease (%)
Alcohol and Sales volume Ton 78102 95557 -18.27%
alcoholic beverage Yield Ton 78147 90897 -14.03%
industry Inventory Ton 26687 25996 2.66%
Sales volume Ton 57652 65677 -12.22%
Wine Yield Ton 56339 62772 -10.25%
Inventory Ton 16370 17037 -3.92%
Sales volume Ton 20450 29880 -31.56%
Brandy Yield Ton 21808 28125 -22.46%
Inventory Ton 10317 8959 15.16%
Explanation on the causes of over 30% year-on-year changes of the related comparison data
□Applicable □Inapplicable
1 9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Due to the decline in market demand the sales volume of brandy during the reporting period
decreased by 31.56% year-on-year.* The fulfillment of significant sales contract and purchase contract signed by the Company
up to the report period
□Applicable □Inapplicable
* Composition of operating costs
Industry categories
Unit: CNY
2024 2023 Year-on-year
Product
Item Proportion in the Proportion in the increase or
category Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 663779410 48.81% 879821814 50% -24.56%
Alcohol
Packing material 338038009 24.86% 465069105 26.43% -27.31%
and
Wages 47241313 3.47% 53675496 3.05% -11.99%
alcoholic
Manufacturing cost 200654650 14.75% 234667006 13.33% -14.49%
beverage
Contract performance
industry 110286688 8.11% 126559536 7.19% -12.86%
costs
Product categories
Unit: CNY
2024 2023 Year-on-year
Product
Item Proportion in the Proportion in the increase or
category Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 519678925 49.93% 656311928 51.04% -20.82%
Packing material 262997298 25.27% 318464336 24.77% -17.42%
Wages 38055803 3.66% 43873400 3.41% -13.26%
Wine
Manufacturing cost 139210471 13.38% 174460788 13.57% -20.21%
Contract performance
807733767.76%926836887.21%-12.85%
costs
Blending liquor 139052184 45.01% 216764039 47.07% -35.85%
Packing material 72469801 23.46% 143038952 31.06% -49.34%
Wages 8826222 2.86% 9390550 2.04% -6.01%
Brandy
Manufacturing cost 59918123 19.39% 58406958 12.68% 2.59%
Contract performance
286745399.28%329054797.15%-12.86%
costs
Explanation
No
2 0Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
* Whether there are changes of consolidation scope during the report period
□Yes □No
During the reporting period the Company’s subsidiary Liaoning Changyu Golden Icewine Valley
Co. Ltd. absorbed and merged another subsidiary of the Company Changyu (Huanren) Grape
Wine Co. Ltd. in December 2024 resulting in a corresponding change in the scope of the
consolidation.* Major changes or adjustments of the Company’s businesses products or service during
the report period
□Applicable □Inapplicable
* Information of major sales customers and major suppliers
The Company’s major sales customers
The total sales amount of the top five customers（CNY） 167901948
The proportion that total sales amount of the top five customers accounting for the annual total
5.12%
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 68286518 2.08%
2 Rank 2nd 32575136 0.99%
3 Rank 3rd 23186668 0.71%
4 Rank 4th 22507894 0.69%
5 Rank 5th 21345732 0.65%
Total -- 167901948 5.12%
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) 351406130
The proportion of the total purchase amount of the top 5 suppliers in the annual purchase
28.74%
amount
The proportion of the related party purchase amount in the top 5 supplier purchase amount
5.49%
in annual purchase amount
Information on the Company’s top 5 biggest suppliers
2 1Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
No. Supplier name Purchase amount(CNY) Proportion in total purchase for the year（%）
1 Rank 1st 125550551 10.27%
2 Rank 2nd 77496763 6.34%
3 Rank 3rd 67118462 5.49%
4 Rank 4th 48772094 3.99%
5 Rank 5th 32468260 2.66%
Total -- 351406130 28.74%
Other situation explanations of main suppliers
□Applicable □Inapplicable
(3) Expense
Unit: CNY
Year-on-year increase
2024 2023 Explanation of significant changes
or decrease (%)
Mainly because of decreased marketing
Sales expense 1012980420 1239782776 -18.29% expense resulting from decreased market
investment
Management
313911881 303990858 3.26% No significant change
expense
Financial Mainly due to the increase in exchange
128360731108345915.81%
expense losses.Mainly due to the increased in the cost of
Research and
testing and consumable materials resulting
Development 19538243 17413534 12.20%
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
2024 2023 Percentage of changes (%)
Number of R&D personnel (person) 139 139 0%
2 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
The proportion of the number of R&D personnel 6.44% 6.35% 0.09%
Educational structure of R&D personnel
Bachelor 48 48 0%
Postgraduate 25 25 0%
Doctor 1 1 0%
Below Bachelor 65 65 0%
Age structure of R&D personnel
Under 30-year-old 34 34 0%
30-to 40-year-old 41 41 0%
Above 40-year-old 64 64 0%
The investment of the Company’s R&D
2024 2023 Percentage of changes (%)
R&D investment amount (CNY) 19538243 17413534 12.20%
R&D investment as a percentage of operating income 0.60% 0.40% 0.20%
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 2024 2023
or decrease (%)
Subtotal of cash inflow in operating activities 3673427471 4619240588 -20.48%
Subtotal of cash outflow in operating activities 3275686404 3446148845 -4.95%
Net amount of cash flow generated in operating activities 397741067 1173091743 -66.09%
Subtotal of cash inflow in investment activities 511439930 272891533 87.42%
Subtotal of cash outflow in investment activities 384211357 596232219 -35.56%
Net amount of cash flow generated in investment activities 127228573 -323340686 Inapplicable
Subtotal of cash inflow in financing activities 507959260 677271426 -25%
2 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Subtotal of cash outflow in financing activities 1274904376 1176936494 8.32%
Net amount of cash flow generated in financing activities -766945116 -499665068 -53.49%
Net increase of cash and cash equivalents -245428201 350402152 -170.04%
Explanation of main influence factors contributing to great changes in related data on year-on-year
basis
□Applicable □Inapplicable
During the reporting period the subtotal of cash inflows from operating activities and the net cash
flows generated from operating activities decreased year-on-year mainly due to the decrease in
cash received from the sale of goods and services as a result of the decrease in sales during the
reporting period compared with the same period last year. The subtotal cash inflow from
investment activities increased the subtotal cash outflow from investment activities decreased and
the net cash flow from investment activities increased mainly due to the recovery of time deposits.The year-on-year decrease in net cash flow from financing activities was mainly due that the
Company bought back and cancelled B shares. The year-on-year decrease in the net increase in
cash and cash equivalents was primarily due to the year-on-year decrease in net cash flows from
operating activities and net cash flows from financing 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
5. Analysis to non-main business
□Applicable □Inapplicable
2 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
6. Assets and liabilities
(1) Significant changes of assets composition
Unit: CNY
At the end of 2024 At the beginning of 2024
Proportion increase or Explanation on
Proportion in the total assets Proportion in the total assets
Amount Amount decrease (%) significant changes
(%)(%)
Monetary funds 1797848130 14.36% 2217693647 16.63% -2.27% No significant changes
Receivables 270829601 2.16% 382132334 2.87% -0.71% No significant changes
Contract assets 0% 0% 0% No significant changes
Inventory 2904070556 23.19% 2765390587 20.74% 2.45% No significant changes
Investment real estate 21960451 0.18% 24482831 0.18% 0% No significant changes
Long-term equity investments 34864748 0.28% 38285620 0.29% -0.01% No significant changes
Fixed assets 5551671795 44.34% 5795082569 43.45% 0.89% No significant changes
Construction in progress 10177372 0.08% 3323241 0.02% 0.06% No significant changes
Right-of-use asset 71761262 0.57% 121745910 0.91% -0.34% No significant changes
Short-term borrowings 216140346 1.73% 364981445 2.74% -1.01% No significant changes
Contract liability 128090353 1.02% 175278849 1.31% -0.29% No significant changes
Long-term borrowings 50637203 0.40% 66616443 0.50% -0.10% No significant changes
Lease liability 27542829 0.22% 85038335 0.64% -0.42% No significant changes
Foreign asset has a high proportion
□Applicable □Inapplicable
2 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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
567568347 Spain 10936633 4.53% 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 543903309 Chile making important decisions through 11847093 4.34% No
of joint venture operation
S.p.A. board of directors.The Company participates in
Kilikanoon Acquisition of Independent
153082748 Australia making important decisions through 4936141 1.22% No
Estate Pty. Ltd. equity operation
board of directors.Francs Champs Sole The Company participates in
Independent
Participations proprietorship 211889682 France making important decisions through -5480189 1.69% 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.
7. Investment condition analysis
2 6Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(1) Overall situation
□Applicable □Inapplicable
Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation
2773860046150000-39.89%
(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 Please refer to
International Wine Self-const Owned 2017.04. Resolution
Yes Liquor 0 1705784100 100% 0 0 —
City Blending and ructed fund 22 Announcement of
and
Cooling Center Seventh Session Board
alcoholic
of Directors 4th Meeting
beverage
Yantai Changyu Resolution
Self-const sector Owned 2017.04.International Wine Yes 0 1136520000 100% 0 0 — Announcement of
ructed fund 22
City Bottling Center Seventh Session Board
2 7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Oak Barrel Self-const Owned 2021.04. of Directors 8th Meeting
Yes 19160000 227014200 97% 0 0 —
Procurement Project ructed fund 28 Seventh Session Board
Intellectualized of Directors 10th
Upgrade and Meeting Resolution
Self-const Owned 2022.04.Renovation Project Yes 3696400 63809400 100% 0 0 — Announcement of Eighth
ructed fund 27
of Changyu Wine Session Board of
Culture Museum Directors 4th Meeting
The new Resolution
fermentation Self-const Owned 2024.04. Announcement of Eighth
Yes 4882200 4882200 90% 0 0 —
workshop project of ructed fund 10 Session Board of
Ningxia Chateau Directors 11th Meeting
Resolution
Announcement of Ninth
Session Board of
Directors 5th Meeting
and Resolution
Infrastructure Announcement of Ninth
improvement Self-const Owned 2022.04. Session Board of
Yes 0 0 0% 0 0 —
project of Changyu ructed fund 27 Directors 9th Meeting
Industrial Park disclosed on China
Securities Journal
Securities Times and
CNINFO
(http://www.cninfo.com.cn/)
Total -- -- -- 27738600 3138009900 -- -- 0 0 -- -- --
28Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(4) Financial assets investment
* Security investment situation
□Applicable □Inapplicable
There are no security investments for the Company during the report period.* Derivatives investment
□Applicable □Inapplicable
There are no derivatives investments for the Company during the report period.
(5) The usage situation of raised capital
□Applicable □Inapplicable
There are no usage situations of raised capital for the Company during the report period.
8. Sale of significant assets and equities
(1) Sale of significant assets
□Applicable □ Inapplicable
The asset The Whether
Whether Whether it is
contributed to the proportion of the
The all the implemented as
net profit of the the net profit Asset Whethe property
Transactio associated claims planned; If it is not
listed company The impact contributed by sale r it is a rights of Disclo
Counterp Sold Sale n price relationshi and debts implemented as Disclosure
from the of the sale on asset sale to pricing related the assets sure
arty asset date (CNY’000 p with the involved planned explain index
beginning of the the company the total net princip transact involved date
0) counterpar have been the reasons and the
current period to profit of the les ion have been
ty transferre measures taken by
the date of sale listed fully
d the company
(CNY’0000) company transferred
Governme The This Negoti The transaction is The
2024. Inapplicab 2024.
nt of Compan 20166 12740 transaction 41.74% ated No No No progressing in an Announcement
12.27 le 12.27
Zhuqiao y’s will not pricing orderly manner on Proposal on
29Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Town in Zhuqiao adversely on the and the transaction Disposal of
Laizhou grape affect the basis price of Partial Grape
and the base normal of CNY101million Bases (2024-
Governme production apprais has been received Interim 67)
nt of and al so far and the disclosed on
Yidao operation of remaining portion China
Town in the is expected to be Securities
Laizhou company; fully paid in 2025. Journal
Certain asset Securities Time
transfer s and CNINFO
income can (http://www.cni
be obtained. nfo.com.cn/)
(2)Sale of significant equities
□Applicable □Inapplicable
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
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 662045272 39870386 2043047363 167864025 130754345
Yantai Changyu Wine Sales Co. Ltd. Subsidiary Sales CNY5million 309169361 289951349 826639081 142171514 106646807
Changyu Trading Co. Ltd. in Development Zone of Yantai Subsidiary Sales CNY5million 90297729 15239443 136809363 46208465 34476172
Laizhou Changyu Wine Sales Co. Ltd. Subsidiary Sales CNY1million 81313432 1080297 274842640 33182419 24904800
Acquisition and disposal of subsidiaries during the report period
□Applicable □Inapplicable
Explanation on main holding and joint stock companies
No.
30Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 2025 the Company expects that the competition in the wine market will remain very fierce but
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.
(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 2025 the Company will try its best to realize operating revenue of not less than CNY3.4billion
and control the main operating costs and three period expenses below CNY3billion.
(4) Measures to be adopted by the Company
In the new year the Company will lead and unite all employees to continue to vigorously promote
the spirit of service ingenuity and fairness face difficulties with courage and never retreat
maintain firm faith uplift morale and strive to achieve various business indicators. The Company
will focus on the following key tasks:
Firstly the Company will adhere to promote the development of wine brandy and other alcoholic
products taking grapes as raw materials; keep improving the sales division system and being more
31Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
focused on products markets and marketing actions; strive to achieve win-win situation with
partners (distributors) manage the price system and create a good distribution environment.Secondly the Company will reinforce the innovation. The Company will mainly do a good job in
product innovation carry out the layout of white wine sweet wine sparkling wine and alcohol-free
wine and systematically make innovation from the product sales system brand marketing and
other aspects; do a good job in digital innovation continue to work hard in the “last mile” of
interaction with consumers and break through the blocking point; do a good job in channel
innovation actively expand community stores convenience stores and new retail and other
terminal channels continue to expand online private domain live streaming and other new
e-commerce; vigorously promote the innovation of the tourism system to promote more tourism
products (especially alcohol products) to the local tourist attractions.Thirdly the Company will continuously enhance and energize the management team to boost
corporate vitality. The Company will intensify performance evaluations at all levels actively attract
top talent strengthen the “catfish effect” optimize the talent structure and consistently improve
team morale cohesion and combat effectiveness.Fourthly the Company will strengthen market management to ensure steady improvement in
production safety and product quality. The Company will intensify efforts to regulate advertising
and tasting wines cracking down on counterfeit products and unauthorized distribution; firmly
establish the principle of prioritizing safety in production and implement responsibilities andsystems at all levels to ensure safe operations; adhere to the quality positioning of “Chinese terroirChangyu style world-class quality” continue to uphold the “four strictest standards” to prevent any
quality or safety incidents; refine quality control and management across all stages including grapecultivation bulk wine transportation and raw material procurement ensuring “traceable quality andaccountable responsibility”.Fifthly the Company will strengthen financial management and audit supervision to prevent major
operational risks. The Company will further enhance profit and gross margin assessments reinforce
capital management to ensure the security of receivables and funds and intensify audit efforts on
marketing activities and advertising expenditures including unannounced audits. Additionally the
Company will strengthen internal control effectiveness and financial compliance audits for joint
ventures to avoid potential losses.
(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
32Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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
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 Basic situation
Reception Reception Reception
reception Reception object contents and index of
time place pattern
object provided data reception
Yi WEI from Citic Securities The Record of
The recent
The Xiangwei ZHANG from Guosen Investor-relation
Institutions production and
meeting Field Securities and shareholders who s Activity
2024.03.11 and operation
room of the research participated in the on-site meeting disclosed on
individuals situation of the
Company of the Company’s First Interim Shenzhen Stock
Company
Shareholders’ Meeting in 2024. Exchange
2024.05.15 The Network Institutions The majority of domestic and The recent The Record of
33Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
meeting platform and foreign investment institutions production and Investor-relation
room of the online individuals and individuals operation s Activity
Company communi situation of the disclosed on
cation Company Shenzhen Stock
Exchange
Yi WEI from Citic Securities
Jiadong HU from Guosen
Securities Huifeng REN and
Ruoshi LIU from Taikang Asset
Management Co. Ltd. Shuhui
CHEN and Ke YI from China
The Record of
Merchants Securities Lu ZHENG The recent
The Investor-relation
Institutions and Mo ZHANG from Rosefinch production and
meeting Field s Activity
2024.05.17 and Fund Jiaqi LI from Everbright operation
room of the research disclosed on
individuals Securities Yu FU from Elephant situation of the
Company Shenzhen Stock
Capital Shengxiong LI from Company
Exchange
Qingdao Wentai Private Equity
Fund Management Co. Ltd. and
shareholders who participated in
the on-site meeting of the
Company’s 2023 Annual
Shareholders’ Meeting.
13. Market value management system and valuation enhancement plan formulation and
implementation
Whether the company has established a market value management system
□Yes □No
Whether the company has disclosed a valuation enhancement plan
□Yes □No
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
IV. Corporate Governance
34Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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 supervisor and board of supervisors
The Company strictly elected all supervisors in light of the procedures stipulated in the Corporation
Act and Articles of Associations. At present board of supervisors has three people among which one
supervisor is representative for staff. The number and composition of board of supervisor meet the
requirements of regulations and laws. All supervisors of the Company could follow the requirement
of Rules of Board of Supervisors’ Procedure insist the principle of responsibility to all shareholders
seriously perform their duties effectively supervise and present their independent opinions on
important issues interrelated deals financial status appointment of an accounting firm and the duty
performance of directors and managers of the Company.
35Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(5) 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.
(6) 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.
(7) 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
36Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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
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
37Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
4. Information for the shareholders’ meeting and interim shareholders’ meeting held during the report period
(1) Information for the shareholders’ meeting during the report period
Participation ratio Convening Disclosure
Session Meeting type Meeting Resolution
of investors date date
The First Interim Interim According to the voting results the meeting deliberated and approved Plan on Buy-Back of
Shareholders’ Shareholders’ 53.89% 2024.03.11 2024.03.12 Partial B Shares of Yantai Changyu Pioneer Wine Co. Ltd. Proposal on Replacement and
Meeting in 2024 Meeting Election of Directors and Proposal on Authorization to Buy Back Shares by disclosed ballot.According to the voting results the meeting deliberated and approved 2023 Annual Board of
2023 Annual Annual
Directors’ Work Report 2023 Annual Board of Supervisors’ Work Report 2023 Annual Report
Shareholders’ Shareholders’ 53.58% 2024.05.17 2024.05.18
Proposal on 2023 Annual Profit Distribution Proposal on 2024 Annual Financial Budget and
Meeting Meeting
Proposal on Appointment of Certified Public Accounting Firm by disclosed ballot.According to the voting results the meeting deliberated and approved Proposal on Amendment of
the Company’s “Articles of Association” Proposal on Amendment of the Company’s “Rules ofThe Second Interim InterimRrocedure for Shareholders’ Meeting” Proposal on Amendment of the Company’s “Rules ofShareholders’ Shareholders’ 52.23% 2024.06.25 2024.06.26Rrocedure for Board of Directors” Proposal on Amendment of the Company’s “Rules ofMeeting in 2024 MeetingRrocedure for Board of Supervisors” and Proposal on Formulation of “Working System ofIndependent Directors” by disclosed ballot.According to the voting results the meeting deliberated and approved Proposal on Buying Back
The Third Interim Interim
and Cancelling Some Restricted Shares of the Company’s 2023 Restricted Share Incentive Plan
Shareholders’ Shareholders’ 52.59% 2024.08.08 2024.08.09
and Adjusting the Buy-back Price and Proposal on Changing the Registed Capital and
Meeting in 2024 Meeting
Amending the “Articles of Association” by disclosed ballot.The Fourth Interim Interim
According to the voting results the meeting deliberated and approved Proposal on Appointment of
Shareholders’ Shareholders’ 53.08% 2024.09.30 2024.10.01
Director by disclosed ballot.Meeting in 2024 Meeting
38Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Request for convening interim shareholders’ meeting by preferred shareholders owing recovered voting right
□Applicable □Inapplicable
5. Situation for Directors Supervisors Senior Executives and Staff
(1) Changes in shareholdings of directors supervisors and senior executives
Shares held at Increased Decreased Other Shares held at
Beginning date Ending date Reasons of the increase and decrease
Name Gender Age Post Status the beginning shares during shares during changes of the end of the
of tenure of tenure change of shares held
of the period the period the period shares held period
Hongjiang
M 60 Chairman Incumbent 2002.05.20 2025.05.28 279600 279600
ZHOU
Jian SUN M 58 Director Incumbent 2019.05.17 2025.05.28 330000 30000 360000 Purchased the Company’s B shares
Jiming LI M 58 Director Incumbent 2019.05.17 2025.05.28 160000 160000
Dianxin
F 58 Director Outgoing 2019.05.17 2024.02.22
CHEN
Xunzhang
M 51 Director Incumbent 2024.03.11 2025.05.28
LIU
Aldino
M 72 Director Outgoing 2006.12.07 2024.09.02
Marzorati
Marco
Giovanni M 51 Director Incumbent 2024.10.01 2025.05.28
Ferrari
Jianxun
M 58 Director Incumbent 2022.05.27 2025.05.28 160000 160000
JIANG
Stefano
M 66 Director Incumbent 2022.05.27 2025.05.28
Battioni
Enrico
M 56 Director Incumbent 2019.05.17 2025.05.28
Sivieri
Yun
F 57 Director Incumbent 2020.06.19 2025.05.28
CHIANG
Changqing Independent
M 60 Incumbent 2019.05.17 2025.05.28
DUAN director
Huirong F 61 Independent Incumbent 2019.05.17 2025.05.28
39Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
LIU director
Independent
Qinglin LIU M 61 Incumbent 2019.07.02 2025.05.28
director
Independent
Renzhu YU M 46 Incumbent 2020.05.27 2025.05.28
director
Zhuquan Independent
M 59 Incumbent 2020.05.27 2025.05.28
WANG director
Chairman of
Bin LENG M 62 the Board of Incumbent 2020.05.27 2025.05.28
Supervisors
Zhijun LIU M 44 Supervisor Incumbent 2016.05.26 2025.05.28
Wenping
F 56 Supervisor Outgoing 2022.05.27 2024.05.05 0
ZHENG
Jinfeng YU F 34 Supervisor Incumbent 2024.05.05 2025.05.28
General
Jian SUN M 58 Incumbent 2018.01.10 2025.06.10
manager
Deputy
Jiming LI M 58 general Incumbent 2019.05.28 2025.06.10
manager
Deputy
Hua JIANG M 61 general Incumbent 2001.09.14 2025.06.10 170000 170000
manager
Deputy
Bin PENG M 58 general Incumbent 2018.01.10 2025.06.10 160000 160000
manager
Deputy
general
Jianxun
M 58 manager and Incumbent 2019.05.28 2025.06.10
JIANG
Board
secretary
General Was bought back the granted
Jianfu PAN M 49 manager Incumbent 2018.04.19 2025.06.10 100000 30000 70000
restricted shares
assistant
General
Qingkun
M 52 manager Incumbent 2022.06.09 2025.06.10 100000 25000 75000 Sold the granted restricted shares
KONG
assistant
40Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
General Was bought back the granted
Shilu LIU M 50 manager Incumbent 2018.04.19 2025.06.10 100000 30000 70000
restricted shares
assistant
General
Zhenbo
M 48 manager Incumbent 2018.04.19 2025.06.10 100000 25000 75000 Sold the granted restricted shares
XIAO
assistant
Total -- -- -- -- -- -- 1659600 30000 50000 60000 1579600 --
Is there any resignation of directors and supervisors and dismissal of senior management personnel during their term of office during the reporting
period
□Yes □No
During the reporting period directors Ms. Dianxin Chen and Mr. Aldino Marzorati resigned as directors of the Company; The supervisor Ms. Wenping
Zheng no longer served as the supervisor of the Company due to retirement.Changes of directors supervisors and senior managers of the company
□Applicable □Inapplicable
Name Post Status Date Reason
Dianxin CHEN Director Outgoing 2024.02.22 Job transfer
Aldino Marzorati Director Outgoing 2024.09.02 Retired
Wenping ZHENG Supervisor Outgoing 2024.05.05 Retired
Xunzhang LIU Director Be elected 2024.03.11 Job transfer
Marco Giovanni Ferrari Director Be elected 2024.10.01 Job transfer
Jinfeng YU Supervisor Be elected 2024.05.05 Job transfer
41Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Situation for work experience
The professional background main work experiences and present positions of the Company’s
directors supervisors and senior executives
* Members of Board of Directors
Mr. Hongjiang Zhou male 60 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 58 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 58 years oldChinese 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 58 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. Xunzhang Liu male 51 years old Chinese with bachelor degree from January 1993 to
January 2022 successively served as a Secretary of Political Consultative Conference the Deputy
Secretary and the Secretary of Youth League Committee of Dachenjia Town Longkou City; he
Secretary of Youth League Committee and the Deputy Town Chief of Beima Town Longkou City;
the Deputy Director of Bureau for Letters and Calls of Longkou Municipal Committee and
Municipal Government; the Director of Longkou Seismological Bureau; the Deputy Secretary of
the Party Committee and the Town Chief of Zhuyouguan Town Longkou City; the Deputy
Secretary of the Party Working Committee of Longkou Economic Development Zone and the
Secretary of the Party Working Committee of Longgang Street; the Secretary of the Party
Committee of Langao Town Longkou City; the Secretary of Party Group and the Director of
Longkou Environmental Protection Bureau; the Secretary of Party Group and the Director of
Longkou Comprehensive Law Enforcement Bureau; the Secretary of Party Committee and the
Director of Longkou Finance Bureau; the Manager of the Management Committee the Secretary of
the Party Working Committee the Secretary of the Party Working Group of the Finance Bureau and
the Director of the Financial Services Center of Longkou Economic Development Zone; a member
of Longkou Government Party Group and the Deputy Mayor of Longkou City. From January 2022
to November 2023 he served as the full-time Deputy Secretary of the Party Committee of Yantai
Guofeng Investment Holding Group Co. Ltd.. From September 2022 to November 2023 he
concurrently served as the Chairman of the Labor Union of Yantai Guofeng Investment Holding
Group Co. Ltd.. Now he serves as the Deputy Secretary of the Party Committee and the 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 51 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
42Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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. Stefano Battioni male 66 years old Italian graduated with a bachelor’s degree. He has
served as a Senior Product Manager of Colgate Palmolive in Italy the Marketing Director of Barilla
Holding the International Marketing Director and the Spirits Business Unit Director-General
Manager of Illva Saronno S.p.A. (a spirit company as a wholly-owned subsidiary of Illva Saronno
Holding S.p.A.). He is currently the CEO of Illva Saronno S.p.A. and the board director of Changyu
Group Co. Ltd. and the Company.Mr. Enrico Sivieri male 56 years old Italian with bachelor degree served successively as the
financial controller of ARNEG S.p.a. the commercial analyst of SPILLERS FOODS ITALIA S.p.a.the trade controller of Nestle’ Purina Petcare Europe European marketing & sales controller of
Nestle’ Purina Petcare Europe the European supply chain controller of Nestle’ Purina Petcare
Europe the Southern Europe regional controller of Nestle’ Purina Petcare Europe and the Director
of group financial controlling of Illva Saronno Holding S.p.A. and currently serving as a member
of the board of directors for Royal Oak Distillery Ltd. and the General Manager of Illva Saronno
Holding S.p.A. and the board director of Changyu Group Co. Ltd. and the Company.Ms. Yun Chiang female 57 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. Qinglin Liu male 61 years old doctoral degree of Management Chinese no overseas
permanent residence. He is currently a professor and doctoral supervisor of Economics Faculty of
Shandong University the Director of Institute for World Economy Studies of Shandong University
the Executive Deputy President of Shandong Institute of Development of Shandong University a
member of a council of China Society of World Economics an executive member of a council of
The Association for Canadian Studies in China and Shandong Youth Scholars Association a
member of a council of Shandong Association for Business Economics and Shandong Price
Association. He currently serves as an independent director of Shandong Xinneng Taishan Power
Generation Co. Ltd. an independent director of Weihai Huadong Automation Co. Ltd. and an
independent director of the Company.
43Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Mr. Changqing Duan male 60 years old Chinese with doctoral degree professor doctoral and
master’s supervisor and the national senior winemaker and senior wine taster.He currently serves
as the chief scientist of national grape industry technology system and the Director of Wine
Processing Key Laboratory of Ministry of Agriculture and Rural Affairs. Meanwhile he holds
concurrent posts of the Director of China Wine Technology Committee the Director of China Wine
and Fruit Wine Expert Committee the Executive President and the Secretary General of Grape and
Wine Branch of Chinese Horticultural Society and the Vice President of China Agricultural Society
Grape Branch. His major research fields are the basic theoretical research and related high and new
technology research and development as well as application promotion work in the direction of
suitability between ecology in producing area and grape variety and liquor variety evolvement
mechanism and directional brewing of wine flavor formation grape fruit flavor metabolism
regulation and product flavor quality evaluation and so on. He is a current independent director of
the Company.Ms. Huirong Liu female 61 years old Chinese with doctoral degree the former Deputy Dean
and Dean of the Institute of Political Science and Law of Ocean University of China. She used to
serve as an independent director of Sailun Group Co. Ltd. Longda Meat and Sacred Sun Co. Ltd.and Shandong Sacred Sun Power Sources Co. Ltd.. Currently she is a second-level professor and
doctoral supervisor of Ocean University of China and with additional post as a researcher of the
“Belt and Road Initiative” Judicial Research Center of the Supreme People’s Court an expert at the
Supreme People’s Court for foreign-related commercial and maritime action expert database the
Deputy Chairman of the sixth Shandong Law Society and the Deputy Director of the Academic
Committee and the Chairman of the Qingdao Law-based Government Research Institute. Her
research fields are International Law and Legislative Science. She has won the title of Shandong
Top Ten Outstanding Young and Middle-aged Jurists the third prize of Excellent Social Science
Achievement of the Ministry of Education the third prize of Shandong Excellent Social Science
Achievement the second prize of Shandong Excellent Philosophy and Social Science Achievement
the first prize of Excellent Achievement of Shandong Education Department and the Top Talent in
Qingdao City. She is a current independent director of the Company.Mr. Renzhu Yu male 46 years old 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 the Company.Mr. Zhuquan Wang male 59 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..* Members of board of supervisors
44Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Mr. Bin Leng male 62 years old Chinese with master degree senior accountant used to be the
Deputy Section Chief and the Section Chief of Yantai Audit Bureau the board director and the
Chief Accountant of Yantai Changyu Group Co. Ltd. and the board director and the Deputy
General Manager of the Company. He is incumbent as the board director and the General Manager
of Yantai Changyu Group Co. Ltd. and the Chairman of Board of Supervisor of the Company with
an additional post of the Chairman and General Manager of Yantai Zhongya Zhibao Pharmaceutical
Co. Ltd..Mr. Zhijun Liu male 44 years old Chinese bachelor degree; from July 2003 to February 2019
he used to serve as the staff of worked in foreign fund department of Economy and Trade Bureau in
Longkou Economic Development Zone a news section member of propaganda department in
Longkou Municipal Committee a member of propaganda and mass work section a member of
planning section the Deputy Director Member of programming development and enterprise
distribution section the Deputy Director Member and the Deputy Chief of programming
development section the supervisor (section chief rank) of the Dongfang Electronics Corporation
Co. Ltd. Shandong Laidong Engine Co. Ltd. and Yantai Public Transportation Group Co. Ltd.and a section chief rank of Yantai Municipal Audit Bureau; from March 2019 to June 2020 he
served as the had of the equity management department of Yantai Guofeng Investment Holdings
Group Co. Ltd.; from June 2020 to present he serves as a member of the Party Committee and the
deputy general manager of Yantai Guofeng Investment Holdings Group Co. Ltd. He now is a
supervisor of the Company.Ms. Jinfeng Yu female borned in 1990 Chinese bachelor degree. She has been working in the
Legal Affairs Department of the Company since 2013.* Other senior executives
Mr. Hua Jiang male 61 years old Chinese master degree senior engineer has been serving as
the Deputy General Manager of the Company since September 14 2001.Mr. Bin Peng male 58 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 49 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 and the General Manager of
Beijing marketing management center and Beijing Chateau AFIP.Mr. Qingkun Kong male 52 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 50 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..
45Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Mr. Zhenbo Xiao male 48 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.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 2026.01.11 No
Bin LENG Yantai Changyu Group Co. Ltd. Director & General manager 2018.01.10 2026.01.11 Yes
Jian SUN Yantai Changyu Group Co. Ltd. Director 2018.01.10 2026.01.11 No
Jiming LI Yantai Changyu Group Co. Ltd. Director 2018.01.10 2026.01.11 No
Xunzhang LIU Yantai Changyu Group Co. Ltd. Director 2023.12.11 2026.01.11 No
Marco Giovanni Ferrari Yantai Changyu Group Co. Ltd. Director 2024.09.02 2026.01.11 No
Enrico Sivieri Yantai Changyu Group Co. Ltd. Director 2018.01.10 2026.01.11 No
Stefano Battioni Yantai Changyu Group Co. Ltd. Director 2020.04.09 2026.01.11 No
Yun CHIANG Yantai Changyu Group Co. Ltd. Director 2020.05.12 2026.01.11 No
Explanation for the post in Mr. Bin Leng also holds concurrent post as the Chairman and General Manager of Yantai Zhongya Zhibao
the shareholder’s company Pharmaceutical Co. Ltd..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 supervisors and senior executives
The situation of decision-making process the basis of determination and the actual payment of
remuneration for directors supervisors and senior executives
The salary for the independent directors is paid according to the resolution of shareholders’ meeting.The salary for the chairman directors with administration duty managers and other senior
management should be paid on basis of the evaluation result according to the Yantai Changyu
Pioneer Wine Co. Ltd. Executive Compensation and Performance Design which was passed
during the Board of Directors’ meeting.
46Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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 60 Chairman Incumbent 141.85 No
Jian SUN M 58 Director and General Manager Incumbent 131.14 No
Jiming LI M 58 Director and Deputy General Manager Incumbent 98.85 No
Xunzhang LIU M 51 Director Incumbent 0 Yes
Marco Giovanni
M 51 Director Incumbent 0 Yes
Ferrari
Director Deputy General Manager and
Jianxun JIANG M 58 Incumbent 99.72 No
Board secretary
Stefano Battioni M 66 Director Incumbent 0 Yes
Enrico Sivieri M 56 Director Incumbent 0 Yes
Yun CHIANG F 57 Director Incumbent 0 No
Changqing DUAN M 60 Independent Director Incumbent 10 No
Huirong LIU F 61 Independent Director Incumbent 10 No
Qinglin LIU M 61 Independent Director Incumbent 10 No
Renzhu YU M 46 Independent Director Incumbent 10 No
Zhuquan WANG M 59 Independent Director Incumbent 10 No
Bin LENG M 62 Chairman of the Board of Supervisor Incumbent 0 Yes
Zhijun LIU M 44 Supervisor Incumbent 0 Yes
Jinfeng YU F 34 Supervisor Incumbent 14.53 No
Hua JIANG M 61 Deputy General Manager Incumbent 104.14 No
Bin PENG M 58 Deputy General Manager Incumbent 113.81 No
Jianfu PAN M 49 General Manager Assistant Incumbent 70.13 No
Qingkun KONG M 52 General Manager Assistant Incumbent 69.9 No
Shilu LIU M 50 General Manager Assistant Incumbent 65.43 No
Zhenbo XIAO M 48 General Manager Assistant Incumbent 70.31 No
Total -- -- -- -- 1029.81 --
Other information note
□Applicable □Inapplicable
47Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
6. Performance of directors during the report period
(1) The situation of the board of directors’ meetings during this reporting period
Holding Disclosure
The session of meetings Meeting resolution
date date
The meeting deliberated and approved Plan on Buy-Back of Partial B Shares of Yantai Changyu Pioneer Wine Co.The First Interim Board of
2024.02.22 2024.02.23 Ltd. Proposal on Change in Directors Proposal on Authorization to Buy Back Shares and Proposal on Convening
Directors Meeting in 2024
2024 Annual First Interim Shareholders’ Meetingby disclosed ballot.
The meeting deliberated and approved 2023 Annual Board of Directors’ Work Report 2023 Annual General
Manager’s Work Report 2023 Annual Report Draft Proposal on 2023 Annual Profit Distribution Proposal on
2023 Annual Performance Assessment Results of the Company’s Senior Management 2023 Annual Self Assessment
The Ninth Session Board of
2024.04.10 2024.04.12 Report on Internal Control 2023 Annual Social Responsibility Report Proposal on Relevant Issues of Convening
Directors 9th Meeting
2023 Annual Shareholders’ Meeting Proposal on Appointment of Certified Public Accounting Firm Proposal on
2024 Annual Capital Expenditure Plan Proposal on 2024 Annual Routine Related Transaction and Proposal on
2024 Annual Financial Budget by disclosed ballot.
The Second Interim Board of
2024.04.24 2024.04.26 The meeting deliberated and approved Proposal on 2024 First Quarter Report by disclosed ballot.
Directors’ Meeting in 2024
The meeting deliberated and approved PProposal on Amendment of the Company’s “Articles of Association”
Proposal on Amendment of the Company’s “Rules of Rrocedure for Shareholders’ Meeting” Proposal on
The Third Interim Board of Amendment of the Company’s “Rules of Rrocedure for Board of Directors” Proposal on Amendment of the
2024.06.072024.06.08
Directors’ Meeting in 2024 Company’s “Rules of Rrocedure for Board of Supervisors” Proposal on Amendment of the Company’s “Rules ofRrocedure for Board of Directors’ Auditing Committee” Proposal on Amendment of the Company’s “Rules ofRrocedure for Board of Directors’ Emolument Committee” Proposal on Formulation of “Working System ofIndependent Directors” and Proposal on Convening Second Interim Shareholders’ Meeting in 2024 by disclosed
48Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
ballot.The meeting deliberated and approved Proposal on the Achievement for Lifting Restrictions in the First Period of
Lifting Restriction Regarding the Company’s 2023 Restricted Share Incentive Plan Proposal on Buying Back and
The Fourth Interim Board of
2024.07.22 2024.07.24 Cancelling Some Restricted Shares of the Company’s 2023 Restricted Share Incentive Plan and Adjusting the
Directors’ Meeting in 2024
Buy-back Price Proposal on Changing the Registed Capital and Amending the “Articles of Association” and
Proposal on Convening Third Interim Shareholders’ Meeting in 2024 by disclosed ballot.The meeting deliberated and approved 2024 Semi-annual Report Proposal on 2024 Semi-Annual Profit
The Ninth Session Board of
2024.08.20 2024.08.22 Distribution Proposal on Providing Guarantee for Kilikanoon Estate Pty Ltd in Australia and Proposal on
Directors 10th Meeting
Modifying Registered Capital and Amending “Articles of Association” by disclosed ballot.The Fifth Interim Board of The meeting deliberated and approved Proposal on Appointment of Director and Proposal on Convening Fourth
2024.09.112024.09.12
Directors Meeting in 2024 Interim Shareholders’ Meeting in 2024 by disclosed ballot.The Sixth Interim Board of
2024.10.25 2024.10.28 The meeting deliberated and approved 2024 Third Quarter Report by disclosed ballot.
Directors Meeting in 2024
The Seventh Interim Board of
2024.12.26 2024.12.27 The meeting deliberated and approved Proposal on Disposal of Partial Grape Bases by disclosed ballot.
Directors Meeting in 2024
(2) Attendance of directors for the board of directors’ and the shareholders’ meetings
Attendance of directors for the board of directors
Required attendance On-site Communication Authorized Whether or not to attend the meetings Attendance time for the
Name Absence
time attendance attendance attendance personally for successive twice shareholders’ meeting
Hongjiang ZHOU 9 2 7 0 0 No 3
49Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Jian SUN 9 2 7 0 0 No 1
Jiming LI 9 2 7 0 0 No 0
Jianxun JIANG 9 2 7 0 0 No 5
Dianxin CHEN 1 0 1 0 0 No 0
Xunzhang LIU 8 2 6 0 0 No 0
Marco Giovanni Ferrari 2 0 2 0 0 No 0
Aldino Marzorati 6 2 4 0 0 No 0
Stefano Battioni 9 2 7 0 0 No 0
Enrico Sivieri 9 2 7 0 0 No 0
Yun CHIANG 9 2 7 0 0 No 0
Changqing DUAN 9 1 7 1 0 No 0
Huirong LIU 9 1 7 1 0 No 0
Qinglin LIU 9 2 7 0 0 No 0
Renzhu YU 9 1 7 1 0 No 0
Zhuquan WANG 9 1 7 1 0 No 0
Explanation for failed to personally attend the Board of Directors’ meetings for successive two times
No
(3) 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.
(4) Other explanations on directors’ performance
Whether or not the directors’ propositions are accepted by the Company
□Yes □No
50Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
The explantion on the directors’ propositions are accepted or are not accepted by the Company
The proposal of the Chairman of the Company to buy back partial B shares was accepted and the Company bought back B shares during the reporting
period.
7. 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 2023
The First Xunzhang LIU Changqing Strengthen the
Annual Report Draft Proposal on 2023 Annual
Auditing DUAN Huirong LIU company’s internal
2024.04 Profit Distribution Proposal on Appointing
Committee Qinglin LIU Renzhu YU 1 audit work to prevent.10 Certified Public Accountants Firm 2023 Annual
Meeting in Zhuquan WANG Enrico the occurrence of
Self Assessment Report on Internal Control and
2024 Sivieri major business risks.
2024 Annual Internal Audit Plan.
The Second Xunzhang LIU Changqing
Auditing DUAN Huirong LIU
2024.04 The meeting deliberated and approved the 2024
Committee Qinglin LIU Renzhu YU 1 No.24 First Quarter Report.Meeting in Zhuquan WANG Enrico
2024 Sivieri No No
The Third Xunzhang LIU Changqing
Auditing DUAN Huirong LIU The meeting deliberated and approved the 2024
2024.08
Committee Qinglin LIU Renzhu YU 1 Semi-Annual Report and Proposal on 2024 No.20
Meeting in Zhuquan WANG Enrico Semi-Annual Profit Distribution.
2024 Sivieri
The Fourth Xunzhang LIU Changqing
Auditing DUAN Huirong LIU
2024.10 The meeting deliberated and approved the 2024
Committee Qinglin LIU Renzhu YU 1 No.25 Third Quarter Report.Meeting in Zhuquan WANG Enrico
2024 Sivieri
51Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Changqing DUAN
The First
Huirong LIU Qinglin LIU
Emolument The meeting deliberated and approved the Proposal
Renzhu YU Zhuquan 2024.04
Committee 1 on 2023 Annual Performance Assessment Results of No
WANG Yun CHIANG .10
Meeting in the Company’s Senior Executives.Jianxun JIANG Aldino
2024
Marzorati
The meeting deliberated and approved the The
Proposal on Achievement for Lifting Restrictions in
the First Restriction-lifted Period involved in the No No
Changqing DUAN
The Second Company’s Restricted Share Incentive Plan in
Huirong LIU Qinglin LIU
Emolument 2023 Proposal on the 2023 Annual Performance
Renzhu YU Zhuquan 2024.07
Committee 1 Assessment Results of the Incenctive Objects of No
WANG Yun CHIANG .22
Meeting in Company’s 2023 Restricted Share Incentive Plan
Jianxun JIANG Aldino
2024 and Proposal on Buy-back and Cancel Some
Marzorati
Restricted Shares of the Company’s 2023 Restricted
Share Incentive Plan and to Adjust the Buy-back
Price.
8. 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. 2024 Annual Report
9. 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) 648
Incumbent staff number of major subsidiary companies at the end of reporting period
1310
(people)
Total incumbent staff at the end of reporting period (people) 2158
Total staff getting paid in current period (people) 2158
Retired staff number whose expenses are undertaken by parent company or subsidiary
0
companies (people)
Specialty constitution
Category Number of people (people)
Production staff 616
Sales staff 1072
Technical staff 127
Financial staff 100
Administrative staff 243
Total 2158
Education degree
Category Number (People)
Postgraduate and above 100
Bachelor 850
Junior College 675
Technical secondary school or Senior high school 384
Junior high school and below 149
Total 2158
(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 2025 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. 2024 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.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.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
10. 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 2023 Annual Shareholders’ Meeting convened on May
17 2024 the Company’s 2023 annual profit distribution scheme is shown as follows: based on total
686455059 shares (including 460246359 A shares and 226208700 B shares) after excluding
5794500 B shares bought back the Company would pay cash dividend to all shareholders
registered on the share registration day: CNY5.042206 per ten shares in cash (tax-inclusive; after
tax deduction A share QFII RQFII and individuals and securities investment funds holding IPO
restricted shares will be paid CNY4.537985 per ten shares) with a total of CNY346124780.From disclosure of the distribution scheme to implementation the total share capital of the
Company has not changed.
54Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
On June 8 2024 the Company published Implementation Announcement of 2023 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 14
2024 and June 17 2024. The last trading day the ex-dividend day and the share registration day of
B Share was respectively on June 14 2024 June 17 2024 and on June 19 2024.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 14 2024 after the closing of Shenzhen Stock
Exchange and all B Shareholders registered at CSDC Shenzhen Company up to the afternoon of
June 19 2024 (The last trading day was on June 14 2024) after the closing of Shenzhen Stock
Exchange .The dispatching this time has already been successfully completed in June of 2024. 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) 4
The cardinal number of the capital stocks for the preliminary distribution scheme (share) 671823900
Cash dividend distribution（CNY）(including tax) 268729560
Amount of cash dividends (eg. shares buy-back)（CNY）in other ways 0
Total cash dividend distribution（CNY）(including other ways) 268729560
Distributable profit（CNY） 305210999
55Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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 2024 is CNY305210999 and the net profit of the parent company in financial statement in 2024 is
CNY485266316. According to PRC accounting standard the situation for attributable profits of the consolidation and the
parent company at the end of 2024 as following:
Unit: CNY
Consolidation Parent company
Year-end undistributed profit 9232928370 9825895684
Among which: Total comprehensive income in 2024 305210999? 485266316
Undistributed profit carried forward from beginning of the year 9273629318 9686541315
Dividends distribution of 2023 345911947 345911947
Legal earned surplus reserve to be drawn 0 0According to regulation of 157th item in the Articles of Association which is that “the Company can distribute dividends eitherin cash or by stock 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 to be distributed in cash in the last three years is not less than 30% of the yearlyaverage distributable profit to be realized in the last three years”. Meanwhile considering the amount on the capital
expenditure in 2025 under the condition of not influencing the normal production and operation the Company put forward
preliminary scheme on profit distribution in 2024 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 671823900 shares at total up to December 31 2024
the Company plans to pay CNY4 in cash as dividends for every ten share (including tax) to the Company’s all shareholders
totaling up to CNY268729560. 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 2024 Annual Shareholders’ Meeting.
11. 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 determined after deliberation in
accordance with the relevant provisions of the Incentive Plan the conditions for lifting restrictions
in the first restriction-lifted period of restricted shares granted under the Company’s incentive plan
have been met. Due to the fact that the regignation of one incentive object and the position changes
of six incentive objects that no longer meet the conditions of 2023 restricted share incentive plan
the Company is required to buy back and cancel the 157790 restricted shares that granted to these
56Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
seven incentive objects but cannot be lifted. Due to the fact that twenty four in-service incentive
objects’s personal performance appraisal results in 2023 are “D” which above proportion of
restriction that can be lifted is 0% this time the Company is required to buy back and cancel the
230486 restricted shares that cannot be lifted during the first lifting period for twenty four
in-service incentive objects due to personal performance appraisal results. Due to the fact that
sixteen in-service incentive objects’ personal performance appraisal results in 2023 are “C” which
proportion of restriction that can be lifted is 70% this time the Company is required to buy back
and cancel the 37390 restricted shares that cannot be lifted during the first lifting period for 16
in-service incentive objects due to personal performance appraisal results. A total of 425666
restricted shares were bought back and cancelled. The number of restricted shares that can be
released during the first restriction-lifted period of the Company’s 172 incentive objects that meet
the conditions for the release of the restricted shares are 1720495 shares.Equity incentives granted to directors and senior executives of the Company
□Applicable □Inapplicable
57Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 240000 72000 168000
ZHOU
Director
Jian SUN and General 210000 63000 147000
Manager
Director
and Deputy
Jiming LI 160000 48000 112000
General
Manager
Director
Deputy
Jianxun General
16000048000112000
JIANG Manager
Board
secretary
Deputy
Hua JIANG General 160000 48000 112000
Manager
Deputy
Bin PENG General 160000 48000 112000
Manager
General
Jianfu PAN Manager 100000 30000 70000
Assistant
General
Qingkun
Manager 100000 30000 70000
KONG
Assistant
General
Shilu LIU 100000 30000 70000
Manager
58Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Assistant
General
Zhenbo
Manager 100000 30000 70000
XIAO
Assistant
Total -- 0 0 0 0 -- 0 -- 1490000 447000 0 -- 1043000
Note（if have） The number of lifting shares in the current period by Jianfu PAN and Shilu LIU is the number of restricted shares bought back by the Company.Evaluation mechanisms and incentives for senior executives
According to the Compensation and Performance Appraisal Measures of the Company’s Senior Executives for the period from 2022 to 2024
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
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.
12. 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 2024 Annual Self-Assessment Report on Internal
Control disclosed in Securities Times China Securities Journal and www.cninfo.com.cn on April 18 2025.
59Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Specific situations for significant defects of the internal control found during the report period
□Yes □No
13. 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
14. 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 2025.04.18
Disclosure index for full text of the internal control self-assessment report 2024 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 2025
Percentage of total unit assets included in scope of the assessment accounting for
81.44%
the Company’s total assets of consolidated financial statements
Percentage of unit operating income included in scope of the assessment accounting
82.62%
for the Company’s operating income of consolidated financial statements
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. For operation target or key business index widely out of budget in various
example: ? Company’s Directors Supervisors and Senior Management have aspects. ? Safety accident effects: Cause one person and above death
Qualitative criteria fraudulent practices; ? The Company makes corrections for the published financial or more than 3 person serious injuries. ? Major negative effects:
report; ? The audit of external intermediary agent finds significant misstatement Negative information frequently appears in the medias with involving a
existing in the current financial report but the Company does not realize it during the wide scope in the international and national mainstream media. ?
operation process; ? Negative information frequently appears in the medias with Environment effects: Create irreparable damages to environment and
involving a wide scope; ? The Company’s audit committee and internal audit cause massive public complains.
60Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
department makes an inefficient supervision for internal control; ? Other situations Major defects: Any situations listed below appears it can be regarded
maybe cause significant misdirection which guides the report users to make the right as major defects. ?Operation: Unable to achieve partly operation
judgment. target a big margin out of budget in various aspects. ? Safety accident
Major defects：The defect of internal control individually or together with other effects: Without reaching the number of person loss or serious injury of
defects has the reasonable probability to cause the significant misstatements which significant defects. ? Major negative effects: Negative news appears in
cannot be promptly prevented or found and corrected timely in the financial report the media with influencing a wide scope in the provincial mainstream
although the misstatements neither achieves nor exceeds the importance level but still media. ? Environment effects: Cause heavy environment damages and
arising the attention of Board of Directors and management team. ? Failure to select massive public complains ought to carry out the significant remedial
and apply accounting regulations in accordance with generally accepted accounting measures.principles; ? Failure to establish the anti-fraud procedures and control measures; ? General defects: Any situations listed below appears it can be regarded
Failure to set up corresponding control mechanism or to carry out and take as general defects. ?Operation: Other effects unable to constitute the
corresponding compensating control for the accounting treatments with irregular and significant defects or major defects. ? Safety accident effects: Personal
special deal; ? Negative news appears in the media with influencing a wide scope; ? injury less than the quantitative standards of major defects. ? Major
One or more defects exist in the control during the process of the ending financial negative effects: Other defects unable to constitute the significant
report and the target of achieving truthfulness and integrality cannot be reasonably defects or major defects. ? Environment effects: Other environment
guaranteed in the financial report; ? General defects refer to the other control defects effects unable to constitute the significant defects or major defects.which do not constitute the significant and major defects.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%
61Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Number of significant defect in financial report 0
Number of significant defect in non-financial
0
report
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 2024.Disclosure of the internal control audit report Disclosure
Disclosure date for the full text of the internal control audit report 2025.04.18
2024 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 2025.Opinion type of the internal control audit report Standard without reserved opinion
Whether or not exists significant defects in non-financial reports No
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
15. Self-inspection and rectification of problems in the special action on governance of listed company
No.
62Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
V. Environmental and Social Responsibility
1. Major Environmental issues
Whether the listed company and its subsidiaries belong to major polluters published by the environmental protection department
□Yes □No
Policies and industry standards related to environmental protection
The Environmental Protection Law of People’s Republic of China The Water Pollution’s Prevention and Control Law of People’s Republic of China
The Air Pollution’s Prevention and Control Law of People’s Republic of China The Environmental Noise Pollution’s Prevention and Control Law of
People’s Republic of China The Environmental Solid Waste Pollution’s Prevention and Control Law of People’s Republic of China and The
Environmental Protection Regulations of Liaoning Province; the national’s General Principles of Hazardous Waste Identification Standards Surface
Water Environmental Quality Standards Groundwater Environmental Quality Standards Environmental Air Quality Standards Acoustic
Environmental Quality Standards Emission Standard for Environmental Noise at the Boundary of Industrial Enterprises Comprehensive Discharge
Standard for Boiler Air Pollutants The Limiting Value of Occupational Exposure to Hazardous Factors in the Workplace (Chemical Hazardous
Factors) and Comprehensive Wastewater Discharge Standard of Liaoning Province.Administrative permit for environmental protection
It has been approved in the Huanhuanjianzi (2016) No.24 issued by the Environmental Protection Bureau of Huanren Manchu Autonomous County.Industrial emission standards and specific information on the discharge of pollutants involved in production and business activities
Name of major Name of major Quantity Total Condition
Name of Total
pollutants and pollutants and Mode of of Distribution situation Discharge Implemented approved of
company or volume of
particular characteristic discharge discharge of discharge outlet concentration pollution discharge standard volume of excessive
subsidiary discharge
pollutants pollutants outlet discharge discharge
Liaoning Organized Discharge outlet Confirmed in line Emission Standard for Air Pollutants of Boiler
Changyu exhaust gas exhaust gas of boiler with national Meeting the (GB13271-2014) Emission Standard for Odor
Golden inorganized waster water chimney and 2 standard Graphical national Pollutants (GB14554-93) 4a in Class 2 of 35m3/d 120m3/d No
Icewine exhaust gas noise discharge outlet Signs for standards Emission Standard for Environmental Noise at
Valley Co. waster water of factory waste Environmental the Boundary of Industrial Enterprises
63Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Ltd. noise water Protection (GB12348-2008) Comprehensive Wastewater
(GB15562.1-1995) Discharge Standard of Liaoning Province
(GB15562.2-1995) (DB21/1627-2008)
Treatment of pollutants
The exhaust gas SO2 and NOX produced by this company's boiler are discharged through ceramic tube dust removers and bag dust removers. A
wastewater treatment station has been constructed. The wastewater treatment process adopts the treatment process of hydrolys is aerobiont. Production
wastewater and domestic sewage are treated by the in-plant wastewater treatment station and then discharged into the waste water treatment plant in
Beidianzixiang Town.Emergency plan for emergent environmental incident
The Company has formulated a comprehensive emergency plan for emergent environmental incident.Environmental self-monitoring program
The Company has formulated a complete environmental self-monitoring program.Investment in environmental governance and protection and payment of environmental protection tax
The Company has made sufficient investment in environmental protection done a good job in environmental governance and protection and paid
environmental protection tax in full and timely according to law.Measures taken to reduce carbon emissions and their effects during the reporting period
□Applicable □Inapplicable
Administrative penalties for environmental issues during the reporting period
Company or subsidiary Reason for The impact on the production and The company’s
Violation Penalty result
name penalty operation of listed companies rectification measures
None None None None None None
Other environmental information that should be made public
No
64Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Other related environmental information
No
2. Social responsibility performance
Please refer to the 2024 Environmental Social and Regulatory Report (ESG) disclosed on CNINFO
(www.cninfo.com.cn) by the Company on April 18 2025.
3. Consolidate and expand the achievements of poverty alleviation and rural revitalization
Please refer to the “Charity and Community Involvement” section of 2024 Environmental Social
and Regulatory Report (ESG) disclosed on CNINFO (www.cninfo.com.cn) by the Company on
April 18 2025.
65Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
VI. 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 Commitment
Commitments Commitment content Implementation
party type 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
Contract the trademark use fee annually paid by the
According to Trademark License Contract the trademark
Commitments at the initial Company to Changyu Group shall be mainly used by
Clear the use of royalty of Changyu and other trademarks paid by the 1997.05.18
public offering or refinancing Yantai Changyu Changyu Group to publicize trademarks including
trademark Company to Yantai Changyu Group Co. Ltd. every year is 1997.05.18 -
Group Co.Ltd. Changyu and contract products. Except 2013 to 2017
royalty mainly used for advertising Changyu and other trademarks and 2019.04.04
during which the commitment was not strictly
this contract products by Yantai Changyu Group Co. Ltd.performed Yantai Changyu Group Co. Ltd. has been
performing its commitment.Commitment under timely
Yes
implementation or not
Whether or not to have None
specific reasons of the
unimplemented commitment
and next steps
(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
66Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
□Applicable □Inapplicable
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’s subsidiary Liaoning Changyu Golden Icewine Valley Co. Ltd. absorbed and merged another subsidiary
of the Company Changyu (Huanren) Grape Wine Co. Ltd. in December 2024 resulting in a corresponding change in the scope of the consolidation.
67Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 6
Name of certified public accountant for the audit service of domestic accounting firm Jia WANG Hui JIANG
Consecutive period for the certified public accountant’s audit service of domestic
6
accounting firm
Overseas accounting firm name —
Remuneration for overseas accounting firm (CNY‘0000) 0
Consecutive period for the audit service of overseas accounting firm —
Name of certified public accountant for the audit service of overseas accounting firm —
Consecutive period for the certified public accountant’s audit service of overseas
—
accounting firm
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
68Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 2024 Annual
Yantai Controlled
Purchase and Routine Related
Shenma by the Determine
and commission Agreemen 2024.04. Transaction
Packagin same d by 6712 16.23% 9000 No Cash No
commission processing t pricing 12 disclosed in China
g Co. parent agreement
processing packaging Securities
Ltd. company
materials JournalSecurities
Timesand
CNINFO in 2024
Total -- -- 6712 -- 9000 -- -- -- -- --
Details of the return of large sales No
Actual performance of the estimated total amount for
daily operations related transactions by category that No
will occur during this period.Reason for the deference between transaction price No
and market reference price(if available)
69Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
70Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
7 1Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 2023.08.31 7530 2023.09.01 7530 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) 0 Total of the actual guarantee amount for subsidiaries during the report period (B2) 0
Total of the guarantee quota approved to subsidiaries by the end of the report period
7530 Balance of the actual guarantee for subsidiaries by the end of the report period (B4) 7530
(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
7 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 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） 0 Total of the actual guarantee amount during the report period（A2+B2+C2） 0
Total of the approved guarantee quota by the end of the report period（A3+B3+C3） 7530 Balance of the actual guarantee by the end of the report period（A4+B4+C4） 7530
The proportion of actual total guarantee amount (A4+B4+C4) accounting for the
0.71%
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.
(3) Entrusting others to manage cash assets
? Financial management entrustment
□Applicable □Inapplicable
There is no financial management entrustment during the report period.? Loan entrustment
7 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
□Applicable □Inapplicable
There is no loan entrustment during the report period.
(4) Other important contracts
□Applicable □Inapplicable
Name of The contract The contract Wheth
Name of Performanc
the Date of deals with the deals with the Name of Apprais Pricin Transacti er for Relev
the other e at the end Disclos
company Object of the carrying value appraised value appraisal al base g on price related ance
party in of the ure Disclosure index
entering contract contrac of the asset of the asset agency date princi (CNY’000 party relati
the reporting date
into the t signed (CNY’0000) (if (CNY’0000) (if (if have) (if have) ple 0) transac on
contract period
contract have) have) tions
Please refer to the
The vines SAHND
Company’s
and the ONG
In the Announcement on
The investment ZHONG
process of the Proposal on
Governme in the CHUAN
execution Disposal of
nt of production G LAND
but the full Partial Grape
Yantai Zhuqiao facilities REAL
transaction Bases disclosed
Changyu Town in such as the ESTATE Negoti
2024.12 2024.11. price has not 2024.12 on China
Pioeer Laizhou nursing 7231 20166 ASSET ated 20166 No None.27 30 been .27 Securities Journal
Wine and the house EVALUA pricing
obtained Securities Times
Co.Ltd. Governme water TION
according to and CNINFO
nt of Yidao conservancy AND
the date (http://www.cninf
Town in facilities SURVEY
agreed in the o.com.cn/)
Laizhou roads and ING Co.contract (Announcement
fences and Ltd
No. : 2024-
so on
interim 67)
16. Other Major issues
□Applicable □Inapplicable
There are no other major issues need to be explained during the report period.
17. Major issues of Company’s subsidiaries
□Applicable □Inapplicable
7 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
VII. 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 6785559 0.98% -1924461 -1924461 4861098 0.72%
1. State-owned holdings
2. State-owned legal person holdings
3. Other domestic holdings 6785559 0.98% -1924461 -1924461 4861098 0.72%
Among which: domestic legal person
domestic natural person 6785559 0.98% -1924461 -1924461 4861098 0.72%
4. Foreign-owned holdings
Among which: foreign legal person
foreign natural person
II. Shares without trading limited condition 685464000 99.02% -18501198 -18501198 666962802 99.28%
1. A shares 453460800 65.51% 1633495 1633495 455094295 67.74%
7 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
2. B shares 232003200 33.51% -20134693 -20134693 211868507 31.54%
3. Oversea listed foreign shares
4. Others
III. Total shares 692249559 100% -20425659 -20425659 671823900 100%
Cause of share change
□Applicable □Inapplicable
During the reporting period the Company bought back and cancelled partial B shares and restricted shares granted to employeess.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.□Applicable □Inapplicable
7 6Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(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 269700 60000 209700 2024.08.06
lock-in
Released restricted shares but cannot be sold due to senior executive
Jian SUN 300000 30000 52500 277500 2024.08.06
lock-in
Released restricted shares but cannot be sold due to senior executive
Jiming LI 160000 40000 120000 2024.08.06
lock-in
Released restricted shares but cannot be sold due to senior executive
Jianxun JIANG 160000 40000 120000 2024.08.06
lock-in
Released restricted shares but cannot be sold due to senior executive
Hua JIANG 167500 40000 127500 2024.08.06
lock-in
Released restricted shares but cannot be sold due to senior executive
Bin PENG 160000 40000 120000 2024.08.06
lock-in
Released restricted shares but cannot be sold due to senior executive
Jianfu PAN 100000 30000 70000 2024.08.06
lock-in
Released restricted shares but cannot be sold due to senior executive
Qingkun KONG 100000 25000 75000 2024.08.06
lock-in
Shilu LIU 100000 30000 70000 Restricted shares cannot be sold 2024.08.06
Released restricted shares but cannot be sold due to senior executive
Zhenbo XIAO 100000 25000 75000 2024.08.06
lock-in
Other key employees who had been
5168359 1550508 3617851 Restricted shares cannot be sold 2024.08.06
granted restricted shares
Total 6785559 30000 1933008 4882551 -- --
2. Securities issuance and listing situation
(1) Securities issuance (exclude preferred share) during report period
□Applicable □Inapplicable
7 7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Explanation of change in Company’s total shares and shareholding structure and change in Company’s assets and liability
structure
□Applicable □Inapplicable
During the reporting period the Company bought back and cancelled 19999993 B Shares and 425666 A Shares of restricted shares resulting in a
change in the total number of shares and shareholder structure of the Company.
(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
43265 end of last month before the disclosure 42990 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. 51.42% 345473856 0 0 345473856 — 0
person
Fengdi JIANG Domestic natural person 0.71% 4781900 -525100 0 4781900 — 0
VANGUARD TOTAL INTERNATIONAL STOCK INDEX
Foreign legal person 0.51% 3446137 -37400 0 3446137 — 0
FUND
7 8Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Domestic non-state legal
Social Security Fund 114 0.51% 3425055 2829600 0 3425055 — 0
person
Hairong HU Domestic natural person 0.47% 3183035 1879035 0 3183035 — 0
ABC Credit Suisse Innovation Power Stock Type Securities Domestic non-state legal
0.47%3150050315005003150050—0
Investment Fund person
VANGUARD EMERGING MARKETS STOCK INDEX
Foreign legal person 0.46% 3087201 -1007062 0 3087201 — 0
FUND
HONG KONG SECURITIES CLEARING COMPANY
Foreign legal person 0.40% 2676593 -2646441 0 2676593 — 0
LIMITED
Domestic non-state legal
Social Security Fund 413 0.39% 2610060 2610060 0 2610060 — 0
person
NORGES BANK Foreign legal person 0.37% 2464119 0 0 2464119 — 0
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
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 4781900 A 4781900
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3446137 B 3446137
Social Security Fund 114 3425055 A 3425055
7 9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Hairong HU 3183035 A 3183035
ABC Credit Suisse Innovation Power Stock Type Securities Investment Fund 3150050 A 3150050
VANGUARD EMERGING MARKETS STOCK INDEX FUND 3087201 B 3087201
HONG KONG SECURITIES CLEARING COMPANY LIMITED 2676593 A 2676593
Social Security Fund 413 2610060 A 2610060
NORGES BANK 2464119 B 2464119
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.
8 0Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
8 1Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 Feng RONG 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.
8 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
8 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
Accounted for
No less than months from the
about 1.44%-2.89% Not more
10 million date of approval
of the total share than
2024.02.23 shares no of the share Cancelled 19999993 0%
capital of the CNY200m
more than 20 buyback plan by
company at that illion
million shares the Shareholders’
time
Meeting
2024.07.24 425666 0.06% 636.80 — Cancelled 425666 6.27%
Implementation progress of reducing share repurchased by centralized bidding
□Applicable □Inapplicable
8 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
VIII. Related Situation of Preferred Shares
□Applicable □Inapplicable
There are no preferred shares during the report period.IX. Related Situation of Bonds
□Applicable □Inapplicable
X. Financial Report
1. Audit Report
Type of audit opinion Standard unqualified audit opinion
Date signed on audit report April 16 2025
KPMG Huazhen Certified Public Accountants
Audit agency name
Co. Ltd. (special general partnership)
Audit report No. KPMG Huazhen ShenZi No. 2507683
Certified public accountant’s name Jia WANG Hui JIANG
85Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Co. Ltd.ENGLISH TRANSLATION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2024 TO 31 DECEMBER 2024
IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH
TRANSLATION THE CHINESE VERSION WILL PREVAIL
86Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
AUDITOR’S REPORT
KPMG Huazhen Shen Zi No. 2507683
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 2024 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 2024 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 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.
87Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2507683
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 2024.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.How the Matter was Addressed in Our
The Key Audit Matters
Audit
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.Selecting the sales contracts Yantai
Based on the contractual agreement and the Changyu signed with distributors in
business arrangement Yantai Changyu sells order to examine whether Yantai
products to distributors and the transfer of Changyu has adopted the unified
product ownership is completed and the transaction terms and evaluate
revenue is recognised when the goods are whether the accounting policy of
delivered to distributors and signed for revenue recognition meets the
acceptance. requirements of the Accounting
As revenue is one of the key performance Standards for Business Enterprises;
indicators of Yantai Changyu Group there is a On a sampling basis reconcile the
risk that management may recognise revenue
revenue recorded for the year to
earlier or later in order to meet specific
relevant supporting files such as
performance targets or expectations therefore
relevant orders and signed delivery
the risk of cut-off misstatement arising from
notes etc. to evaluate whether
distributors’ sales revenue is identified as a key revenue is recognised in accordance
audit matter.with the accounting policy of Yantai
Changyu;
88Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2507683
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.How the Matter was Addressed in Our
The Key Audit Matters
Audit
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;
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.
89Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2507683
Other Information
Management of Yantai Changyu is responsible for the other information. The other
information comprises all the information included in the 2024 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.
90Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2507683
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.
91Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
AUDITOR’S REPORT (continued)
KPMG Huazhen Shen Zi No. 2507683
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 Jiang Hui
(Signature and stamp)
16 April 2025
92Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated balance sheet
as at 31 December 2024
(Expressed in Renminbi Yuan)
31 December 31 December
Note
20242023
Assets
Current assets
Cash at bank and on hand V.1 1797848130 2217693647
Bills receivable V.2 1036243 1260000
Accounts receivable V.3 270829601 382132334
Receivables under financing V.4 230960211 408316028
Prepayments V.5 60631575 61497933
Other receivables V.6 264598394 71496276
Inventories V.7 2904070556 2765390587
Other current assets V.8 80383241 88368542
Total current assets 5610357951 5996155347
Non-current assets
Long-term equity investments V.9 34864748 38285620
Investment properties V.10 21960451 24482831
Fixed assets V.11 5551671795 5795082569
Construction in progress V.12 10177372 3323241
Bearer biological assets V.13 66483964 177461983
Right-of-use assets V.14 71761262 121745910
Intangible assets V.15 527706383 542625776
Goodwill V.16 101149082 107163616
Long-term deferred expenses V.17 298793702 306662107
Deferred tax assets V.18 221993099 221518204
Other non-current assets V.19 3554409 1760000
Total non-current assets 6910116267 7340111857
Total assets 12520474218 13336267204
The notes on pages 112 to 207 form part of these financial statements.
93Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated balance sheet
as at 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
31 December 31 December
Note
20242023
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V.20 216140346 364981445
Accounts payable V.21 417510439 473352525
Contract liabilities V.22 128090353 175278849
Employee benefits payable V.23 166704917 185331292
Taxes payable V.24 189147054 274723431
Other payables V.25 398149521 555634336
Other current liabilities V.26 40764242 44958297
Non-current liabilities due within
V.27 79949769 78523993
one year
Total current liabilities 1636456641 2152784168
Non-current liabilities
Long-term loans V.28 50637203 66616443
Lease liabilities V.29 27542829 85038335
Deferred income V.30 25938817 32582734
Deferred tax liabilities V.18 7344165 8719729
Total non-current liabilities 111463014 192957241
Total liabilities 1747919655 2345741409
The notes on pages 112 to 207 form part of these financial statements.
94Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated balance sheet
as at 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
31 December 31 December
Note
20242023
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.31 671823900 692249559
Capital reserve V.32 482143547 651086707
Less：Treasury stock V.33 70704426 103411919
Other comprehensive income V.34 (39714972) (14784677)
Surplus reserve V.35 342732000 342732000
Retained earnings V.36 9232928370 9273629318
Total equity attributable to shareholders of
1061920841910841500988
the Company
Non-controlling interests 153346144 149024807
Total shareholders’ equity 10772554563 10990525795
Total liabilities and shareholders’ equity 12520474218 13336267204
These financial statements were approved by the Board of Directors of the Company on
16April 2025. .
Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
95Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company balance sheet
as at 31 December 2024
(Expressed in Renminbi Yuan)
31 December 31 December
Note
20242023
Assets
Current assets
Cash at bank and on hand 876557848 1242484544
Accounts receivable 226796 5189894
Receivables under financing XVII.1 13110297 36322019
Prepayments 5526029 52587
Other receivables XVII.2 952762563 576949997
Inventories 396334804 323465919
Other current assets - 147187
Total current assets 2244518337 2184612147
Non-current assets ? ?
Long-term equity investments XVII.3 7689232919 7648498638
Investment properties 21960451 24482831
Fixed assets 176158046 194601612
Construction in progress - 264175
Bearer biological assets 20075933 100785279
Right-of-use assets 6985971 37025896
Intangible assets 69806357 72552201
Deferred tax assets 2624459 2327585
Other non-current assets 1864430003 1934430000
Total non-current assets 9851274139 10014968217
Total assets 12095792476 12199580364
The notes on pages 112 to 207 form part of these financial statements.
96Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company balance sheet
as at 31 December 2024(continued)
(Expressed in Renminbi Yuan)
31 December 31 December
Note
20242023
Liabilities and shareholders’ equity
Current liabilities
Short-term loans 50000000 100000000
Accounts payable 92990317 63686113
Employee benefits payable 68033360 68654350
Taxes payable 2010276 6439899
Other payables 584915573 608904995
Non-current liabilities due within
21992123803910
one year
Total current liabilities 800148738 851489267
Non-current liabilities
Lease liabilities 5115806 42380074
Deferred income 1398701 55718
Total non-current liabilities 6514507 42435792
Total liabilities 806663245 893925059
The notes on pages 112 to 207 form part of these financial statements.
97Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company balance sheet
as at 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
31 December 31 December
Note
20242023
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital 671823900 692249559
Capital reserve 519382073 687544350
Less：Treasury stock 70704426 103411919
Surplus reserve 342732000 342732000
Retained earnings 9825895684 9686541315
Total shareholders’ equity 11289129231 11305655305
Total liabilities and shareholders’ equity 12095792476 12199580364
These financial statements were approved by the Board of Directors of the Company on 16
April 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
98Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated income statement
for the year ended 31 December 2024
(Expressed in Renminbi Yuan)
Note 2024 2023
I. Operating income V.37 3277278347 4384764335
Less: Operating costs V.37 1392602399 1786983657
Taxes and surcharges V.38 273762629 349735571
Selling and distribution
V.39 1012980420 1239782776
expenses
General and administrative
V.40 313911881 303990858
expenses
Research and development
1953824317413534
expenses
Financial expenses V.41 12836073 11083459
Including: Interest expenses 34261730 35800097
Interest income 34643667 30571465
Add: Other income V.42 52613910 51523799
Investment (losses)/income V.43 (4420872) 23847450
Including: Losses from
investment
(4420872)(712480)
associates and in
joint ventures
Credit reversal V.44 1818835 1397658
Impairment losses V.45 (7465500) (13506958)
Gain/(losses) from disposal of
V.46 132116926 (134133)
assets
The notes on pages 112 to 207 form part of these financial statements.
99Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated income statement
for the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
Note 2024 2023
II. Operating profit 426310001 738902296
Add: Non-operating income V.47 4977930 11992270
Less: Non-operating expenses V.47 3733074 3428410
III. Profit before income tax 427554857 747466156
Less: Income tax expenses V.48 113227572 221433447
IV. Net profit 314327285 526032709
(1) Net profit classified by
??
continuity of operations:
1. Net profit from continuing
314327285526032709
operations
2. Net profit from discontinued
--
operations
(2) Net profit classified by
??
ownership:
1. Net profit attributable to
shareholders of the 305210999 532438907
Company
2. Non-controlling net
9116286(6406198)
interests/(losses)
V. Other comprehensive income net of
(27197923)9519495
tax
(1) Other comprehensive income
(net of tax) attributable to (24930295) 8975561
shareholders of the Company
Translation differences arising
from translation of foreign (24930295) 8975561
currency financial statements
(2) Other comprehensive income
(net of tax) attributable to (2267628) 543934
non-controlling interests
The notes on pages 112 to 207 form part of these financial statements.
100Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated income statement
for the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
Note 2024 2023
VI. Total comprehensive income for the
287129362535552204
year
(1) Attributable to shareholders of
280280704541414468
the Company
(2) Attributable to non-controlling
6848658(5862264)
interests
VII. Earnings per share: ? ?
(1) Basic earnings per share V.49 0.45 0.78
(2) Diluted earnings per share V.49 0.45 0.78
These financial statements were approved by the Board of Directors of the Company on 16
April 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
101Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company income statement
for the year ended 31 December 2024
(Expressed in Renminbi Yuan)
Note 2024 2023
I. Operating income XVII.4 562078771 731158954
Less: Operating cost XVII.4 496879337 621636564
Taxes and surcharges 18450000 26163038
General and administrative
6865899760054424
expenses
Research and development
8784051127242
expenses
Financial net income (13673283) (2756864)
Including: Interest expenses 2019519 3184460
Interest income 21038636 10213608
Add: Other income 954175 3219830
Investment income XVII.5 368167007 439250529
Credit Impairment losses (245) -
Asset Impairment losses (6014534) (42274055)
Proceeds from the disposal of
135896203-
assets
II. Operating profit 489887921 425130854
Add: Non-operating income 1246114 386193
Less: Non-operating expenses 2409239 1258048
The notes on pages 112 to 207 form part of these financial statements.
102Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company income statement
for the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
Note 2024 2023
III. Profit before income tax 488724796 424258999
Less: Income tax expenses 3458480 12118898
IV. Net profit 485266316 412140101
(i) Net profit from continuing
485266316412140101
operations
(ii) Net profit from discontinued
--
operations
V. Other comprehensive income net of
--
tax
VI. Total comprehensive income for the
485266316412140101
year
These financial statements were approved by the Board of Directors of the Company on 16
April 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
103Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated cash flow statement
for the year ended 31 December 2024
(Expressed in Renminbi Yuan)
Note 2024 2023
I. Cash flows from operating activities:
Proceeds from sale of goods and
35371138664362027268
rendering of services
Refund of taxes 55276632 37827698
Proceeds from other operating
V.50(1) 81036973 219385622
activities
Sub-total of cash inflows 3673427471 4619240588
Payment for goods and services 1432909914 1368282215
Payment to and for employees 497180417 491419621
Payment of various taxes 704434463 910748260
Payment for other operating activities V.50(1) 641161610 675698749
Sub-total of cash outflows 3275686404 3446148845
Net cash flows from operating
V.51(1) 397741067 1173091743
activities
II. Cash flows from investing activities:
Proceeds from disposal of
V.50(2) 464200000 238200000
investments
Investment returns received 4936198 3196066
Net proceeds from disposal of fixed
assets intangible assets and other 42303732 10529793
long-term assets
Net proceeds from disposal of
-20308625
subsidiaries and other business units
Net proceeds from acquisition of
-657049
subsidiaries and other business units
Sub-total of cash inflows 511439930 272891533
Payment for acquisition of fixed
assets intangible assets and other 94561357 132032219
long-term assets
Payment for acquisition of
289650000464200000
investments
Sub-total of cash outflows 384211357 596232219
Net cash flows from investing
127228573(323340686)
activities
The notes on pages 112 to 207 form part of these financial statements.
104Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated cash flow statement
for the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
Note 2024 2023
III. Cash flows from financing activities: ?
Proceeds from investors - 103411919
Proceeds from borrowings 507959260 573859507
Sub-total of cash inflows 507959260 677271426
Repayments of borrowings 670128889 768253239
Payment for dividends profit
377462001341454132
distributions or interest
Payment for other financing activities V.50(3) 227313486 67229123
Sub-total of cash outflows 1274904376 1176936494
Net cash flows from financing
(766945116)(499665068)
activities
IV. Effect of foreign exchange rate
changes on cash and cash (3452725) 316163
equivalents
V. Net (decrease)/increase in cash and
V.51(1) (245428201) 350402152
cash equivalents
Add: Cash and cash equivalents at
19631557521612753600
the beginning of the year
VI. Cash and cash equivalents at the end
V.51(2) 1717727551 1963155752
of the year
These financial statements were approved by the Board of Directors of the Company on 16
April 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
105Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company cash flow statement
for the year ended 31 December 2024
(Expressed in Renminbi Yuan)
Note 2024 2023
I. Cash flows from operating activities:
Proceeds from sale of goods and
669302405673455798
rendering of services
Proceeds from other operating
1479948412473241
activities
Sub-total of cash inflows 684101889 685929039
Payment for goods and services 452049677 611290566
Payment to and for employees 55724885 60646447
Payment of various taxes 41659134 62523754
Payment for other operating activities 20393900 28861990
Sub-total of cash outflows 569827596 763322757
Net cash flows from operating
114274293(77393718)
activities
II. Cash flows from investing activities:
Proceeds from disposal of
464200000262833449
investments
Investment returns received 243103205 729828424
Net proceeds from disposal of fixed
assets intangible assets and other 1190693 576150
long-term assets
Net proceeds from disposal of
subsidiaries and other business - 17965519
units
Proceeds from borrowings to
14000000010000000
subsidiaries
Sub-total of cash inflows 848493898 1021203542
Payment for acquisition of fixed
assets intangible assets and other 5532306 7116731
long-term assets
Payment for acquisition of
288650000478823400
investments
Net payment for acquisition of
subsidiaries and other business 65506916 5537700
units
Cash paid to subsidiaries 205200000 94230000
Sub-total of cash outflows 564889222 585707831
Net cash flows from investing
283604676435495711
activities
The notes on pages 112 to 207 form part of these financial statements.
106Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company cash flow statement
for the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
Note 2024 2023
III. Cash flows from financing activities:
Proceeds from investors - 103411919
Proceeds from borrowings 50000000 100000000
Sub-total of cash inflows 50000000 203411919
Repayments of borrowings 100000000 100000000
Payment for dividends or interest 347931466 311643260
Payment for other financing activities 190324198 4956105
Sub-total of cash outflows 638255664 416599365
Net cash flows from financing
(588255664)(213187446)
activities
IV. Effect of foreign exchange rate
changes on cash and cash -? -
equivalents
V. Net (decrease)/increase in cash and
(190376695)144914547
cash equivalents
Add: Cash and cash equivalents at
988284544843369997
the beginning of the year
VI. Cash and cash equivalents at the end
797907849988284544
of the year
These financial statements were approved by the Board of Directors of the Company on 16
April 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
107Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2024
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Total
Other Non-controlling
Note Less:Treasury Retained shareholders’
Share capital Capital reserve comprehensive Surplus reserve Sub-total interests
stock earnings equity
income
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
V.31 (425666) (10077952) 32707493 - - - 22203875 - 22203875
incentive plan
(2). Acquisition of
VIII.2 - (780883) - - - - (780883) (1102655) (1883538)
non-controlling interests
(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 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
108Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Consolidated statement of changes in shareholders’ equity (continued)
for the year ended 31 December 2023
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Total
Other Non-controlling
Note Less:Treasury Retained shareholders’
Share capital Capital reserve comprehensive Surplus reserve Sub-total interests
stock earnings equity
income
I. Balance at the beginning of the year 685464000 524968760 - (23760238) 342732000 9049649211 10579053733 246526561 10825580294
II. Changes in equity during the year ? ? ? ? ? ? ? ?
1. Total comprehensive income - - - 8975561 - 532438907 541414468 (5862264) 535552204
2. Shareholders’ contributions and
decrease of capital
(1). Effects of restricted share
V.31 6785559 127362115 (103411919) - - - 30735755 - 30735755
incentive plan
(2). Acquisition of
VIII.2 - (1244168) - - - - (1244168) (31502609) (32746777)
non-controlling interests
3. Appropriation of profits ? ? ? ? ? ? ? ?
Distributions to shareholders V.36 - - - - - (308458800) (308458800) (1538316) (309997116)
4. Others
Disposal of equities in subsidiaries - - - - - - - (58598565) (58598565)
III. Balance at the end of the year 692249559 651086707 (103411919) (14784677) 342732000 9273629318 10841500988 149024807 10990525795
These financial statements were approved by the Board of Directors of the Company on 16 April 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
109Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company statement of changes in shareholders’ equity
for the year ended 31 December 2024
(Expressed in Renminbi Yuan)
Total
Less:Treasury Retained
Note Share capital Capital reserve Surplus reserve shareholders’
stock earnings
equity
I. Balance at the beginning
692249559687544350(103411919)342732000968654131511305655305
of the year
II. Changes in equity during
?????
the year
1. Total comprehensive
-?-?--?485266316485266316
income
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
-?-?-?-?(345911947)(345911947)
shareholders
III. Balance at the end of the
671823900519382073(70704426)342732000982589568411289129231
year
These financial statements were approved by the Board of Directors of the Company on 16
April 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
110Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Yantai Changyu Pioneer Wine Company Limited
Company statement of changes in shareholders’ equity
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Total
Less:Treasury Retained
Note Share capital Capital reserve Surplus reserve shareholders’
stock earnings
equity
I. Balance at the beginning
685464000560182235-342732000958286001411171238249
of the year
II. Changes in equity during
?????
the year
1. Total comprehensive
----412140101412140101
income
2. Contribution by
owners
(1) Effec
ts of restricted
6785559127362115(103411919)--30735755
share incentive
plan
3. Appropriation of
?????
profits
Distributions to
----(308458800)(308458800)
shareholders
III. Balance at the end of the
692249559687544350(103411919)342732000968654131511305655305
year
These financial statements were approved by the Board of Directors of the Company on 16
April 2025. .Zhou Hongjiang Jiang Jianxun 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)
The notes on pages 112 to 207 form part of these financial statements.
111Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 2024 the total shares issued by the Company amounts to 671823900
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 2025.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
2024 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 2024.
112Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
payables/accounts payable with
Significant other payables/accounts payable with ageing
ageing of more than 1 year
of more than one year
exceeds 0.5% of the Group’s
total liabilities
Carrying amount of the individual
construction in progress exceeds
Significant construction projects in progress
0.5% of the Group’s total
non-current assets
Carrying amount of net assets
attributable to non-controlling
shareholders of the
Significant non-wholly-owned subsidiaries
non-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 investing and financing activities not requiring
flow exceeds exceeds 0.5% of
the use of cash
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
113Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 acquisition?date 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
114Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
115Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
116Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
117Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
118Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
119Yantai Changyu Pioneer Wine Co. Ltd. 2024 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).
120Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
Group. Therefore the Group makes provisions for bad and
Accounts receivable
doubtful 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
receivables and the credit risk characteristics of different
Other receivables
counterparties the Group classifies other receivables into 2
groups specifically: the group of deposits and guarantees
receivable and the group of other receivables.
121Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
122Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
123Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 item of inventories is recognised
as a provision for obsolete inventories and is recognised in profit or loss.
124Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
125Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
126Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.Estimated useful Residual value rate Depreciation rate
Category
life (years) (%) (%)
Plant and buildings 20 - 40 years 0 - 5% 2.4% - 5.0%
127Yantai Changyu Pioneer Wine Co. Ltd. 2024 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:
Estimated useful Residual value rate Depreciation rate
Class
life (years) (%) (%)
Plant and buildings 20 - 40 years 0 - 5% 2.4% - 5.0%
Machinery equipment 5 - 30 years 0 - 5% 3.2% - 20.0%
Motor vehicles 4 - 12 years 0 - 5% 7.9% - 25.0%
Useful lives estimated residual values and depreciation methods are reviewed at least at
each year-end.
(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.
128Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
129Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
130Yantai Changyu Pioneer Wine Co. Ltd. 2024 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:
Estimated net
Estimated useful Depreciation rate
Category residual value
life (years) (%)
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:
Amortisation Amortisation
Item Basis for determination
period (years) methods
Stright-line
Land use rights 40 - 50 years Terms of land use rights
Method
Shorter of the term of
Stright-line
Software licenses 5 - 10 years software or the estimated
Method
useful life of software
Shorter of the term of
trademark rights or the Stright-line
Trademarks 10 years
estimated 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.
131Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
Vi?a Indómita S.A. Vi?a Dos Andes S.A. and Bodegas Santa Alicia SPA. (collectively
referred to as the “Chile Indomita Wine Group”) and the acquisition of Kilikanoon Estate Pty
Ltd. (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
132Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
133Yantai Changyu Pioneer Wine Co. Ltd. 2024 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..
134Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
135Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
136Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
137Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
138Yantai Changyu Pioneer Wine Co. Ltd. 2024 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:
139Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
140Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
141Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.
142Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 2024 over 82% of revenue more than 93% 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
In 2024 the Group has adopted the following newly revised accounting standards and
implementation guidance and illustrative examples issued by the MOF:
The “classification of liabilities as current or non-current” in CAS Bulletin No. 17 (Caikuai
[2023] No. 21)(“CAS Bulletin No. 17”).The requirements on the “presentation of assurance-type warranty expenses” in the
Compilation of Application Guidance to Accounting Standards for Business Enterprises for
2024.
(a) Main effects of the Group’s adoption of the above requirements and guidance
(i) Requirements on the classification of liabilities as current or non-current:
143Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
According to CAS Bulletin No. 17 only the Group’s substantive right to defer the settlement ofliabilities for more than one year after the balance sheet date (“the right to defer the settlementof liabilities”) is considered when classifying the liquidity of liabilities; the subjective possibility
of exercising the above right is not considered.For liabilities arising from the Group’s loan arrangements if the Group’s right to defer the
settlement of liabilities is subject to compliance with covenants specified in the loan
arrangements (“covenants”) only the covenants on or before the balance sheet date when
classifying the liquidity of liabilities are considered; the effect of covenants after the balance
sheet date is not considered.If the Group settles its liabilities by delivering its own equity instruments at the option of the
counterparty and classifies the above options as equity instruments and recognises them
separately as the equity component of a compound financial instrument in accordance with
CAS 37 Presentation of Financial Instruments there will be no effect on the classification of
the liquidity of the liabilities. However there will be effects on the classification if the above
options cannot be classified as equity instruments.The adoption of this requirement does not have a significant effect on the financial position
and financial performance of the Group.(ii) Presentation of assurance-type warranty expenses
According to the Compilation of Application Guidance to Accounting Standards for Business
Enterprises for 2024 the Group has presented assurance-type warranty expenses accrued by
the Group as “operating cost from principal activities” and no longer as “selling anddistribution expenses”.The adoption of this requirement does not have a significant effect on the financial position
and financial performance of the Group.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
13% 9% 6% (China) 20% (France)
Value-added tax services revenue. The
21% (Spain) 19% (Chile) and 10%
(VAT) basis for VAT payable is to
(Australia)
deduct input VAT from the
output VAT for the period
10% of the price 20% of the price and
Consumption tax Based on taxable revenue
RMB1000 each ton (China)
144Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Urban maintenance
and construction Based on VAT paid 7% (China)
tax
Corporate income 25% (China) 25% (France) 28%
Based on taxable profits
tax (Spain) 27% (Chile) 30% (Australia)
Other than tax incentives stated in Note IV. 2 applicable tax rates of the Group in 2024 and
2023 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
145Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
Announcement on Further Implementation of Income Tax Incentives for Small Enterprises
with Meagre Profits (Announcement [2022] No. 13 of the Ministry of Finance and the State
Taxation Administration) and 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.In accordance with the Notice of the Ministry of Finance and the State Administration of
Taxation on the Further Implementation of Reduction and Exemption in Six Taxes and Two
Fees for Small-Scale and Micro Enterprises (Notice of the Ministry of Finance and State
Taxation Administration [2022] No. 10) from 1 January 2022 to 31 December 2024 People’s
Governments of all provinces autonomous regions and municipalities can reduce the
resource tax urban maintenance and construction tax property tax Urban and township land
use tax stamp duty (excluding stamp duty on securities transaction) farmland occupation tax
education surcharges and local education surcharges within a 50% tax range for small-scale
VAT taxpayers small-scale and low-profit enterprises and individually-owned businesses
based on the actual situation in the region. Shandong Xinjiang Ningxia Shaanxi and other
provinces (regions cities) are all subject to a 50% reduction in “six taxes and two fees” and
some subsidiaries of the Company are qualified to enjoy the tax reduction.
146Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
Item 2024 2023
Cash on hand 27228 74951
Bank deposits 1797503539 2217280801
Other monetary funds 317363 337895
Total 1797848130 2217693647
Including: Total overseas deposits 33384691 24317469
As at 31 December 2024 details of restricted bank deposits are as follows：
Item 2024 2023
Escrow account for migrant workers' wages 1153216 -
?
As at 31 December 2024 the Group’s term deposits with previous maturity of more than three
months is RMB 78650000 with interest rate 1.70% - 2.25% (31 December 2023:
254200000).
As at 31 December 2024 the Group’s other monetary assets is as follows:
Item 2024 2023
Alipay account balance 158894 192997
Deposits for the customs 134076 134898
Deposit for ICBC platform 24393 10000
Total 317363 337895
As at 31 December 2024 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 2024 2023
Bank acceptance bills 1036243 1260000
Total 1036243 1260000
All of the above bills are due within one year.
147Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
3 Accounts receivable
(1) Accounts receivable by customer type are as follows:
Type 31 December 2024 31 December 2023
Amounts due from related parties 1458339 4401307
Amounts due from other customers 276983985 390889475
Sub-total 278442324 395290782
Less: Provision for bad and doubtful debts (7612723) (13158448)
Total 270829601 382132334
As at 31 December 2024 ownership restricted accounts receivable is RMB 35917860 (31
December 2023: RMB73628265) referring to Note V. 52.
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2024 2023
Within 1 year (inclusive) 274048512 387161172
Over 1 year but within 2 years (inclusive) 747104 2367283
Over 2 years but within 3 years (inclusive) 2122990 5396673
Over 3 years 1523718 365654
Sub-total 278442324 395290782
Less: Provision for bad and doubtful debts (7612723) (13158448)
Total 270829601 382132334
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.
148Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
2024
Carrying amount at Impairment loss at
Loss given default
the 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
2023
Carrying amount at Impairment loss at
Loss given default
the end of the year the end of the year
Current 0.2% 365010895 660099
Overdue for 1 to 30 days 2.7% 14276606 384812
Overdue for 31 to 60 days 10.8% 1939270 208908
Overdue for 61 to 90 days 20.8% 443199 92141
Overdue for 91 to 120 days 37.2% 880565 328007
Overdue for 121 to 150 days 55.4% 874822 485022
Overdue for 151 to 180 days 55.4% 499866 277137
Overdue for 181 to 210 days 72.1% 497356 358689
Overdue for 211 to 240 days 77.1% 693596 534607
Overdue for 241 to 270 days 82.9% 980610 812545
Overdue for 271 to 300 days 88.9% 1596409 1418894
Overdue for 301 to 330 days 100.0% 9150 9150
Overdue for 331 to 360 days 100.0% 82541 82541
Overdue for 360 days 100.0% 7505897 7505896
Total 3.3% 395290782 13158448
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:
20242023
Balance at the beginning of the year (13158448) (14556106)
Charge for the year (3956483) (7361616)
Recoveries or reversals during the year 9502208 8759274
Balance at the end of the year (7612723) (13158448)
149Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(5) Five largest accounts receivable by debtor at the end of the year:
Ending balance
Percentage of
Relationship with Balance at the of provision for
Name Ageing ending balance
the Group end of the year bad and doubtful
of others (%)
debts
Debtor One Third party 71881360 Within 1 year 25.8% 77670
Debtor Two Third party 16123936 Within 1 year 5.8% 150769
Debtor Three Third party 12590397 Within 1 year 4.5% 117729
Debtor Four Third party 9460951 Within 1 year 3.4% 88466
Debtor Five Third party 7218304 Within 1 year 2.6% 67496
Total 117274948 42.1% 502130
4 Receivables under financing
Item Note 2024 2023
Bills receivable (1) 230960211 408316028
(1) Pledged bills receivable by the Group at the end of the year:
As at 31 December 2024 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 261965866
As at 31 December 2024 bills endorsed by the Group to other parties which are not yet due at
the end of the period is RMB 261965866 (31 December 2022: RMB 394923505 ). 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 2024 2023
Prepayments 60631575 61497933
(2) The ageing analysis of prepayments is as follows:
20242023
Ageing Percentage Percentage
Amount Amount
(%)(%)
Within 1 year (inclusive) 59383101 97.9% 61468643 99.9%
Over 1 year but within 2 years
12484742.1%292900.1%
(inclusive)
Total 60631575 100.0% 61497933 100.0%
150Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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
Percentage of
Nature of the Balance at the of provision for
Name Ageing ending balance
receivable end of the year bad and doubtful
of others (%)
debts
Debtor One Prepayments 28736338 Within 1 year 47.4% -
Debtor Two Prepayments 7486368 Within 1 year 12.3% -
Debtor Three Prepayments 5965968 Within 1 year 9.8% -
Debtor Four Prepayments 5876264 Within 1 year 9.7% -
Debtor Five Prepayments 5344237 Within 1 year 8.8% -
Total 53409175 88.0% -?
6 Other receivables
31 December 2024 31 December 2023
Others 264598394 71496276
(1) Others by customer type:
Customer type 31 December 2024 31 December 2023
Amounts due from other companies 268325284 71496276
Sub-total 268325284 71496276
Less: Provision for bad and doubtful debts (3726890) -
Total 264598394 71496276
(2) The ageing analysis is as follows:
Ageing 2024 2023
Within 1 year (inclusive) 227970834 29551266
Over 1 year but within 2 years (inclusive) 583562 39753227
Over 2 years but within 3 years (inclusive) 38599235 160000
Over 3 years 1171653 2031783
Sub-total 268325284 71496276
Less: Provision for bad and doubtful debts (3726890) -
Total 264598394 71496276
The ageing is counted starting from the date when other receivables are recognised.
(3) Movements of provisions for bad and doubtful debts
20242023
Balance at the beginning of the year - -
Charge for the year (3726890) -
Balance at the end of the year (3726890) -
As at 31 December 2024 the Group has no other receivables written off (31 December
2023: Nil).
151Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(4) Others categorised by nature
Nature of other receivables 2024 2023
Compensation receivable for the disposal of
200666088-
a vineyard (Note)
Land purchases and reserves receivable 37268902 37768902
Refund of consumption tax and VAT 15560239 19104008
Deposit 6163682 5429202
Housing maintenance funds 2640911 2670094
Petty cash receivable 28781 154354
Others 5996681 6369716
Sub-total 268325284 71496276
Less: Provision for bad and doubtful debts (3726890) -
Total 264598394 71496276
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). The
transaction resulted in a decrease in the carrying value of the Company's bearer
biological assets and fixed assets of RMB 71792304 and RMB 36629 respectively
and recognition of gains or losses from disposal of assets of RMB 127400859. As of 15
April 2025 the Company has received a total of RMB 101000000 in compensation.
(5) Five largest others-by debtor at the end of the year
Ending balance
Percentage of
Nature of the Balance at the of provision for
Name Ageing ending balance
receivable end of the year bad and doubtful
of others (%)
debts
Compensation
receivable for the
Debtor One 200666088 Within 1 year 74.8% -
disposal of a
vineyard
Land purchases
Debtor Two and reserves 37268902 2-3 years 13.9% 3726890?
receivable
Debtor Three Refund of VAT 14350724 Within 1 year 5.3% ?-
Housing
Debtor Four maintenance 2640911 1-2 years 1.0% ?-
funds
Debtor Five Others 1650000 Within 1 year 0.6% ?-
Total 256576625 95.6% 3726890
152Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
7 Inventories
(1) Inventories by category:
20242023
Provision for Provision for
Item Carrying Carrying
Book value impairment of Book value impairment of
amount amount
inventories inventories
Raw materials 287082056 - 287082056 241961713 - 241961713
Work in progress 1921142415 - 1921142415 1915860327 - 1915860327
Finished goods 714804585 (18958500) 695846085 625076081 (17507534) 607568547
Total 2923029056 (18958500) 2904070556 2782898121 (17507534) 2765390587
(2) Provision for impairment of inventories:
Increase during Decrease during
Item Opening balance the year the year Closing balance
Recognised Reversal
Finished
17507534(18958500)1750753418958500
goods
8 Other current assets
Item 2024 2023
Input tax to be credited 63225758 65228189
Right to recover returned goods 13866802 16876869
Prepaid income taxes 1408482 4438001
Deferred expenses 1882199 1825483
Sub-total 80383241 88368542
Less: Provision for bad and doubtful debts - -
Total 80383241 88368542
9 Long-term equity investments
(1) Long-term equity investments by category:
Item 2024 2023
Investments in joint ventures 32797631 37018893
Investments in associates 2067117 1266727
Sub-total 34864748 38285620
Less: Provision for impairment -? -
Total 34864748 38285620
153Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Movements of long-term equity investments during the year are as follows:
Movements during the year
2024
(Losses)/Profits
Balance at the 2024 Shareholding
Investee from investments
beginning of the New Investment Closing balance percentage
under
year
equity-method l
Joint ventures ? ? ? ?
SAS L&M Holdings (“L&M Holdings”) 37018893 - (4221262) 32797631 55%
Associates ? ? ? ? ?
Shanghai Yufeng Brand Management Co. Ltd. (Note1) 365362 ?- 18358 383720 10%
Yantai Guolong Wine Industry Co. Ltd. (Note1) 901365 ?- (144364) 757001 10%?
Taizhou Changyu Winery Wine Sales Co. Ltd.("Taizhou
-1000000(73604)92639610%Changyu”). (Note2)
Sub-total 1266727 1000000 (199610) 2067117
Total 38285620 1000000 (4420872) 34864748
Note 1: The Group has appointed one director to each of these investees.Note 2: The Group has appointed two directors to this investee.
154Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
10 Investment properties
Plants and
buildings
Cost
31 December 2023 and 31 December 2024 81165619
Accumulated depreciation ?
31 December 2023 (56682788)
Charge for the year (2522380)
31 December 2024 (59205168)
Carrying amount ?
31 December 2024 21960451
31 December 2023 24482831
11 Fixed assets
(1) Fixed assets
Machinery &
Item Plant & buildings Motor vehicles Total
equipment
Cost
31 December 2023 5882104759 2811522051 24268214 8717895024
Additions during the year ? ? ? ? ?
- Purchases 4453135 61995235 2257884 68706254
- Transfers from construction
50578871074995-6132882
in progress
Disposals or written-offs during
(33999075)(24820992)(4414088)(63234155)
the year
31 December 2024 5857616706 2849771289 22112010 8729500005
Accumulated depreciation ? ? ? ?
31 December 2023 (1312265801) (1577413953) (22769318) (2912449072)
Charge for the year (157070918) (141017363) (1418191) (299506472)
Disposals or written-offs during
1861841322052343381996144490717
the year
31 December 2024 (1450718306) (1696378973) (20367548) (3167464827)
Provision for impairment ? ? ? ?
31 December 2023 and 31
-(10363383)-(10363383)
December 2024
Carrying amount ? ? ? ?
31 December 2024 4406898400 1143028933 1744462 5551671795
31 December 2023 4569838958 1223744715 1498896 5795082569
As at 31 December 2024 ownership restricted net value of fixed assets is RMB 32467803
(31 December 2023: 37985117) referring to Note V. 52.
155Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Temporarily idle fixed assets
Accumulated Provision for
Item Cost Carrying amount
depreciation impairment
Machinery equipment 29423698 (19060315) (10363383) -
Total 29423698 (19060315) (10363383) -
(3) Fixed assets leased out under operating leases
Carrying amount at
Item
the end of the year
Plant & buildings 85545955
Machinery equipment 931
Fixed assets pending certificates of ownership
Reason why the
Item Carrying amount
certificates are pending
Dormitories main building and reception
252909228 Processing
building of Changan Chateau
European town main building and service
153027262 Processing
building of AFIP
Fermentation shop and workshop of Zhangyu
5849794 Processing
(Ningxia)
Office experiment building and workshop of
3704745 Processing
Fermentation Centre
Fermentation shop of Zhangyu (Jingyang) 3893174 Processing
Finished goods warehouse and workshop of
1852782 Processing
Kylin Packaging
Others 563097 Processing
The buildings without property certificate above have no significant impact on the Group’s
management.
12 Construction in progress
(1) Construction in progress
20242023
Project Provision for Carrying Provision for Carrying
Book value Book value
impairment amount impairment amount
Upgrade of the production
7202959-?7202959-?-?-?
line of Noble Dragon
Upgrade of main building
1128971-?1128971-?-?-?
of AFIP
Nnigxia Chateau museum
--?-1376147-1376147
construction project
Shihezi Chateau
-?-?-?700000-?700000
Construction Project
Other Companies’
1845442-?18454421247094-1247094
Construction Project
Total 10177372 - 10177372 3323241 - 3323241
156Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Movements of major construction projects in progress during the year
Attributable to: Interest
Percentage of Accumulated
Budget Opening Additions Transfers to Other Closing Interest rate for Sources of
Item actual cost to capitalised
(RMB million) balance during the year fixed assets transfers out balance capitalised for capitalisation funding
budget (%) interest
the year in 2024 (%)
Upgrade of the production line of Noble
9 - 7202959 - - 7202959 85% -? -? -? Self-raised
Dragon
Upgrade of main building of AFIP 3 - 1128971 - - 1128971 37% - -? -? Self-raised
Fermentation workshop and
5 - 5057887 (5057887) - - 100% - -? -? Self-raised
warehouse of Zhangyu (Ningxia)
Shihezi Chateau Construction Project 780 700000 - - (700000) - 100% -? -? -? Self-raised
157Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
13 Bearer biological assets
Bearer biological assets are vines which measured in cost method.Immature Mature biological
Item Total
biological assets assets
Original book value
31 December 2023 32791446 248838320 281629766
Additions during the year ? ? ?
- Increase in cultivated 1999035 347445 2346480
- Transferred to mature (10035518) 10035518 -
Decrease during the year
(8158622)(152105687)(160264309)
(Note)
31 December 2024 16596341 107115596 123711937
Accumulated amortisation ? ? ?
31 December 2023 - (104167783) (104167783)
Charge for the year - (13833533) (13833533)
Decrease during the year
-6077334360773343
(Note)
31 December 2024 - (57227973) (57227973)
Carrying amount ? ? ?
31 December 2024 16596341 49887623 66483964
31 December 2023 32791446 144670537 177461983
Note: A decrease in bearer biological assets during the year is mainly due to the Group's
disposal of the vineyard in Zhuqiao Town and the Mouziguo grape-growing base.
(1) The carrying value of the Group's bearer biological assets decreased by
RMB 71792304 as a result of the disposal of the vineyard in Zhuqiao Town. See Note
V. 6 (4) for details.
(2) The Group signed a Compensation Agreement with Yantai Zhihai
Agricultural Professional Cooperative (“Zhihai Cooperative”) in December 2024
whereby the Group transferred the Mouziguo grape-growing base at a consideration
of RMB 30000000 (tax inclusive) to Zhihai Cooperative. The transaction resulted in a
decrease in the Company’s bearer biological assets and fixed assets of RMB
17159765 and RMB 16651622 respectively and recognition of losses from
disposal of assets of RMB 4183849.As at 31 December 2024 there is no biological asset with ownership restricted (31 December
2023: Nil).
As at 31 December 2024 no provision for impairment of biological asset of the Group was
recognised as there is no any indication exists (31 December 2023: Nil).
158Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
14 Right-of-use assets
As a lessee
Item Plant&buildings Lands Others Total
Cost
Balance at the beginning of
804253841379804091697986220103779
the year
Additions during the year 2184052 - - 2184052
Decreases during the year (53842) (53299318) - (53353160)
Balance at the end of the year 82555594 84681091 1697986 168934671
Accumulated depreciation ? ? ? ?
Balance at the beginning of
(41596011)(55403469)(1358389)(98357869)
the year
Charge for the year (15966192) (4438690) (339597) (20744479)
Decreases during the year - 21928939 - 21928939
Balance at the end of the year (57562203) (37913220) (1697986) (97173409)
Carrying amounts ? ? ? ?
At the end of the year 24993391 46767871 - 71761262
At the beginning of the year 38829373 82576940 339597 121745910
15 Intangible assets
Item Land use rights Software licenses Trademarks Total
Original book value
31 December 2023 444520847 102888216 189715738 737124801
Additions during the year ? ? ? ?
- Purchase - 2286226 1534621 3820847
31 December 2024 444520847 105174442 191250359 740945648
Accumulated amortisation ? ? ? ?
31 December 2023 (108815810) (69678463) (16004752) (194499025)
Additions during the year
- Charge for the year (5867776) (12287382) (585082) (18740240)
31 December 2024 (114683586) (81965845) (16589834) (213239265)
Carrying amount ? ? ? ?
31 December 2024 329837261 23208597 174660525 527706383
31 December 2023 335705037 33209753 173710986 542625776
As at 31 December 2024 the Group has land use right with infinite useful lives of RMB
32503590 (31 December 2023: RMB32863731) 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 2024 the Group has trademark with infinite useful lives of RMB
156740196 (31 December 2023: RMB155447037) which is held by Chile Indomita Wine
Group and Australia Kilikanoon Estate. 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 used in the cash flow projections are 12.5%
and 13.6%（ 2023：13.3%-13.9%）. The estimated long-term average growth rate of cash flows
after 5 years is 0.0% - 2.0% (2023: 0.0% - 2.5%) which represents the long-term average
growth rate for the industry or the region in which the company operates.
159Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
According to the result of impairment assessment by the end of 31 December 2024 the
management believes there is no impairment loss on those trademarks with infinite useful
lives of the Group (31 December 2023: Nil).As at 31 December 2024 there is no ownership restricted net value of intangible assets. (31
December 2023: Nil ).
16 Goodwill
(1) Changes in goodwill
Name of investee or events from 31 December Additions during Disposals during 31 December
Note
which goodwill arose 2023 the year the year 2024
Original book value
Etablissements Roullet Fransac
(a) 13112525 -? -? 13112525
(“Roullet Fransac”)
Dicot Partners S.L (“Dicot”) (a) 92391901 -? -? 92391901
Chile Indomita Wine Group (a) 6870115 -? -? 6870115
Australia Kilikanoon Estate (a) 37063130 -? -? 37063130
Sub-total 149437671 - - 149437671
Impairment provision ? ? ? ?
Australia Kilikanoon Estate (37063130) -? -? (37063130)
Dicot Partners S.L (“Dicot”) (5210925) (6014534)? -? (11225459)
Sub-total (42274055) (6014534)? - (48288589)
Carrying amount 107163616 (6014534)? - 101149082
(a) The Group acquired Fransac Sales Dicot 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.
(2) Provision for impairment of goodwill
The Group has allocated the above goodwill to relevant asset groups for impairment testing.As at 31 December 2024 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 Roullet Fransac Dicot and
Mirefleurs Indomita Wine are 11.8% 11.7% and 12.5% respectively (2023: 10.7% 9.1%
and 13.3%). 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 rate for
Roullet Fransac Dicot and Mirefleurs Indomita Wine during the projecting period is 4.9%
-18.5% and the revenue growth rate during the subsequent period is 0.0% - 2.5%. 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 margin for the projecting period of Roullet Fransac Dicot and Mirefleurs
Indomita Wine is 40.9% - 44.8% and the average gross profit margin during the subsequent
period is 40.9% - 45.6%.
160Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
17 Long-term deferred expenses
Additions Amortisation
Item 31 December 2023 31 December 2024
during the year for the year
Land requisition fee 43264838 - (1778943) 41485895
Greening fee 110315085 - (8579904) 101735181
Leasehold improvement 146637493 12776010 (10092888) 149320615
Others 6444691 1014007 (1206687) 6252011
Total 306662107 13790017 (21658422) 298793702
18 Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets and liabilities
31 December 2024 31 December 2023
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
40661496104377754102936510563366
assets
Unrealised profits of
417770236104442560403653124100913281
intra-group transactions
Unpaid bonus 123258072 30814518 138873637 34718409
Termination benefits 6739412 1684853 8475845 2118961
Deductible tax losses 280061166 68206780 261937563 61634797
Deferred income 25938817 5540954 32582734 7021304
Effects of Restricted Share
-?? -?? 17614180 4370992 Incentive Plan
Effect of the lease standard 3462626 865659 708367 177094
Sub-total 897891825 221993099 904874815 221518204
Deferred tax liabilities: ? ? ? ?
Revaluation due to business
combinations involving
244477907076871266595307718480
entities not under common
control
Effect of the lease standard 1069168 267294 3995628 1001249
Sub-total 25516958 7344165 30655158 8719729
(2) Details of unrecognised deferred tax assets
Item 2024 2023
Deductible tax losses 478477359 420651124
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
Year 2024 2023
2024-?36171778
20257052851070528510
20266027485668479171
2027123557586128025572
2028117444729117446093
2029106671678-?
Total 478477359 420651124
161Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
19 Other non-current assets
Item 2024 2023
Prepaid for Construction fee 3554409 1760000
20 Short-term loans
Item 2024 2023
Unsecured loans 63222270 178605850
Mortgaged loans 126552126 163103275
Guaranteed loans 26365950 23272320
Total 216140346 364981445
As at 31 December 2024 details of short-term borrowings were as follows:
Interest rate at the
Amount Nature of Interest rate
Amount end of the year
interest rate
RMB % %
Mortgaged loans (USD) 12375000 90634266 Fixed 5.53% ~ 5.94% 5.53% ~ 5.94%
Credit loans (RMB) 50000000 50000000 Floating 1 YEAR LPR-0.95% 2.27%
Mortgaged loans (EUR) 4772694 35917860 Floating 3.41% ~4.65% 3.41% ~4.65%
Secured loan (AUD) 5850000 26365950 Floating BBSW+1.5% 5.9%
Credit loans (USD) 1000000 7323981 Fixed 5.61% 5.61%
Credit loans (EUR) 783753 5898289 Floating 3.41% ~4.65% 3.41% ~4.65%
Total ? 216140346 ? ? ?
As at 31 December 2024 mortgaged loans (EUR) were Hacienda y Vi?edos Marques delAtrio S.L.U (“ Atrio “) factoring of accounts receivable from banks including BancoANTANDER、BBVA、CAIXABANK of EUR 4772694 (equivalent of RMB 35917860) (31
December 2023: EUR 9368417 (equivalent of RMB 73628264).On 31 December 2024 Chile Indomita Wine Group pledged its fixed assets to Banco
Scotiabank and Banco de Chile to borrow USD 12375000 (equivalent to RMB
90634266) (31 December 2023: USD 12625000 (equivalent to RMB 89475011 ).
On 31 December 2024 the secured loan represented the secured loan of Australia
Kilikanoon Estate of AUD5850000 (equivalent to RMB 26365950) (31 December 2023:
AUD 4800000 equivalent to RMB 23272320).
21 Accounts payable
(1) Details of accounts payable are as follows:
Ageing 2024 2023
Within 1 year (inclusive) 413307306 459106370
Over 1 year but within 2 years (inclusive) 2486147 10654983
Over 2 years but within 3 years (inclusive) 372036 990316
Over 3 years 1344950 2600856
Total 417510439 473352525
(2) There is no significant accounts payable with ageing of more than one year.
162Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
22 Contract liabilities
As at As at
Item
31 December 2024 31 December 2023
Receipt in advance 127855694 174757233
Withholding sales rebates 234659 521616
Total 128090353 175278849
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:
Additions during Decrease during
Note 31 December 2023 31 December 2024
the year the year
Short-term employee
(2)176534963433947987(450840565)159642385
benefits
Post-employment
benefits - defined (3) 320484 42565593 (42562957) 323120
contribution plans
Termination benefits 8475845 2040462 (3776895) 6739412
Total 185331292 478554042 (497180417) 166704917
(2) Short-term employee benefits
Additions during Decrease during
31 December 2023 31 December 2024
the year the year
Salaries bonuses
173350251383410051(400269302)156491000
allowances
Staff welfare 1247367 14763504 (14740774) 1270097
Social insurance 295016 19202639 (19195603) 302052
Medical insurance 295016 17600108 (17593104) 302020
Work-related injury
-1387614(1387582)32
insurance
Maternity insurance - 214917 (214917) -
Housing fund 38582 12564213 (12564214) 38581
Labour union fee staff and
16037474007580(4070672)1540655
workers’ education fee
Total 176534963 433947987 (450840565) 159642385
(3) Post-employment benefits - defined contribution plans
Additions during Decrease during
31 December 2023 31 December 2024
the year the year
Basic pension insurance 319251 41355245 (41352689) 321807
Unemployment insurance 1233 1210348 (1210268) 1313
Total 320484 42565593 (42562957) 323120
163Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
24 Taxes payable
Item 2024 2023
Value-added tax 39051407 65545854
Consumption tax 40806933 50879210
Corporate income tax 88479855 134574175
Individual income tax 828712 1414309
Tax on the use of urban land 2301066 1730986
Education surcharges 3857746 5072436
Urban maintenance and construction tax 5372605 6787018
Others 8448730 8719443
Total 189147054 274723431
25 Other payables
Note 31 December 2024 31 December 2023
Others (1) 398149521 555634336
Total 398149521 555634336
(1) Others
(a) Details of others by nature are as follows:
Item 2024 2023
Deposit payable to dealer 170639777 194060993
Advertising fee payable 44729221 104815517
Payables for repurchase of treasury shares 70704426 103411919
Trademarks 18630742 27515798
Freight charges payable 21041131 22301368
Deposits due to suppliers 16515150 18284971
Equipment and construction fee payable 13160841 14832439
Payables for equities - 14623377
Contracting fee payable 3179094 3360355
Staff deposit 735016 462672
Others 38814123 51964927
Total 398149521 555634336
(b) There are no significant others aged over one year accured this year.
26 Other current liabilities
Item 2024 2023
Refund liabilities arising from rights of return 16425141 24869246
Tax to be transferred out as sales 24339101 20089051
Total 40764242 44958297
164Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
27 Non-current liabilities due within one year
Non-current liabilities due within one year by category are as follows:
Item 2024 2023
Long-term loans due within one year 61161578 58510868
Lease liabilities due within one year 18788191 20013125
Total 79949769 78523993
28 Long-term loans
Long-term loans by category
Item Note 2024 2023
Credit loans 111798781 125127311
Less: Long-term loans due
V.27 61161578 58510868
within one year
Total 50637203 66616443
As at 31 December 2024 details of long-term borrowings were as follows:
Interest rate Long-term Long-term
Nature of
Amount Interest rate at the end of loans due loans due
Amount interest
the year within one after one
rate
year year
RMB % %
2.80%-2.80%-
Credit loans (EUR) 842761 6342368 Fixed 2394178 3948190
4.65%4.65%
3.41%-3.41%-
Credit loans (EUR) 14012838 105456413 Floating 58767400 46689013
7.59%7.59%
Total 111798781 61161578 50637203
As at 31 December 2024 Credit loans (EUR) were EUR 14855599 borrowed by Banco
Santander BBVA Caja Rural de Navarr Caixa Bank etc. (equivalent of RMB 111798781
(31 December 2023: EUR15921126 equivalent of RMB 125127311).
29 Lease liabilities
Item Note 2024 2023
Long-term lease liabilities ? 46331020 105051460
Less: Lease liabilities due within one
V.27 18788191 20013125
year
Total ? 27542829 85038335
The specific arrangement of leases activities of the Group refers to Note 53.
165Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
30 Deferred income
Additions during Decrease during
Item 31 December 2023 31 December 2024
the year the year
Government grants 32582734 3174000 (9817917) 25938817
Government grants:
Amounts
Additions of
recognised in other Related to
Liability 31 December 2023 government grants 31 December 2024
income during assets/income
during the year
the year
Government
Industrial development support
12300000 - (4100000) 8200000 grants related
project
to assets
Government
Retaining wall subsidies 8835333 - (988000) 7847333 grants related
to assets
Xinjiang industrial revitalisation Government
and technological 8532000 - (1422000) 7110000 grants related
transformation project to assets
Government
Wine fermentation capacity
1200000 - (1200000) - grants related
construction project
to assets
Government
Special fund for efficient
829000 - (162000) 667000 grants related
water-saving irrigation project
to assets
Subsidy for economic and Government
energy-saving technological 384900 - (128300) 256600 grants related
transformation projects to assets
Government
Subsidies for construction of
245784 - (50600) 195184 grants related
scenic spots
to assets
Subsidy for mechanic Government
development of Penglai 55717 - (55717) - grants related
Daliuhang Base to assets
Government
Improvement of service facilities
-? 264000 -? 264000 grants related
in scenic spots
to assetsThe “Ten-Hundred-ThousandProgram” leisure agriculture Related to
200000150000(350000)-
subsidies from Jugezhuang income
government
Technology research and
industrial subsidies for utilizing Related to
-?2760000(1361300)1398700
China-produced oak for income
winemaking
Total 32582734 3174000 (9817917) 25938817
166Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
31 Share capital
Changes during the year
Balance at the
Cancellation of Balance at the
beginning of the Release of lock-up
year repurchased
end of the year
shares
shares
Unrestricted
RMB ordinary 453460800 1720495 -? 455181295
shares
Restricted RMB
ordinary 6785559 (1720495) (425666) 4639398
shares (Note1)
Foreign shares
listed
232003200-?(19999993)212003207
domestically
(Note2)
Total shares 692249559 - (20425659) 671823900
Note1: 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 were passed by resolutions in the
Group’s 2022 General Meetings of Shareholders held on 26 May 2023. In addition 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 were reviewed and passed in the 2023 first
extraordinary Board meeting held on 26 June 2023 (hereinafter referred to as the
“Restricted Share Incentive Plan” see Note XIII for details). 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 and recognised the
repurchase obligation on restricted shares of RMB103411919.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. 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
167Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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.Note2: The Group convened the First Extraordinary Board Meeting for 2024 on 22 February
2024 and the First Extraordinary General Meeting for 2024 on 11 March 2024 to
review and approve the Proposal on Repurchasing Certain Domestically Listed
Foreign Shares (B Shares) of the Company. As of 17 July 2024 the Group
repurchased a total of 19999993 B shares by way of call auction through the special
account for repurchase totalling RMB178084318. The Group completed the
cancellation of the repurchased shares with the Shenzhen Branch of China Securities
Depository and Clearing Co. Ltd. on 8 November 2024. The transaction resulted in a
decrease of RMB 19999993 in the Group's share capital and a decrease of RMB
158084325 in capital reserve.
32 Capital reserve
Additions Decrease
31 December 31 December
Items Note during during the
20232024
the year year
Share premium (1) 615678532 - (164145809) 451532723
Others (2) 35408175 ?- (4797351) 30610824
Total ? 651086707 - (168943160) 482143547
(1) During the reporting period the Group repurchased and cancelled 19999993 B shares
of the Company resulting in a decrease of RMB 158084325 in share premium. Refer
to Note V. 31 for details.During the reporting period the Group repurchased and cancelled 425666 restricted
shares resulting in a decrease of RMB 6061484 in share premium. See Note V. 31 for
details.
(2) During the reporting period based on the best estimate of the number of equity
instruments granted under the Group’s Restricted Share Incentive Plan capital reserve
decreased by RMB 4016468 due to confirmation of amortization expenses refer to
NoteXIII.1.During the reporting period the difference between the long-term equity investments
obtained by the Group due to the purchase of minority equity and the share of net
assets of the subsidiary calculated continuously since the purchase date according to
the newly increased shareholding ratio reduced the capital reserve by RMB 780883
refer to NoteVIII.2..
168Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
33 Treasury shares
Balance at the
Additions during Decrease during Balance at the
Item beginning of the
the year the year end of the year
year
Treasury shares 103411919 178084318 (210791811) 70704426
Total 103411919 178084318 (210791811) 70704426
During the reporting period the Group's treasury shares decreased by RMB 26220343 due
to the unlocking of shares granted under the Group’s Restricted Share Incentive Plan. The
Group's treasury shares also decreased by RMB 6487150 as some incentive participants
have left the Company due to individual reasons or got job transfer and no longer met the
conditions of the Company's 2023 Restricted Share Incentive Plan.The Group repurchased and cancelled 19999993 B shares resulting in an increase and
decrease in treasury shares of RMB 178084318 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 end of the
Net-of-tax
the year Previously amount year
Less: amount
Item attributable to Before-tax recognised attributable to attributable to
Income tax attributable to
shareholders amount amount shareholders shareholders
expenses non-controllin
of the transferred to of the of the
g interests
Company profit or loss Company Company
Items that may be
reclassified to profit
or loss
Translation
differences
arising from
translation of (14784677) (27197923) - - (24930295) (2267628) (39714972)
foreign currency
financial
statements
35 Surplus reserve
Item 31 December 2024 31 December 2023
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 2024 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.
169Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
36 Retained earnings
Item Note 2024 2023
Retained earnings at the beginning of the
92736293189049649211
year
Add: Net profits for the year attributable to
305210999532438907
shareholders of the Company
Less: Dividends to ordinary shares (1) (345911947) (308458800)
Retained earnings at the end of the year (2) 9232928370 9273629318
(1) Dividends in respect of ordinary shares declared during the year
As approved by the general meeting of shareholders on May 17 2024 the Company
distributed cash dividends of RMB 0.5 per share (2023: RMB 0.45 per share) to common
shareholders on June 17 2024 and June 19 2024 totaling RMB346124780 (2023:
RMB308458800).During the reporting period the Group repurchased and cancelled 425666 restricted shares
granted under the Group’s Restricted Share Incentive Plan and recovered cash dividends of
RMB 212833.
(2) Retained earnings at the end of the year
As at 31 December 2024 the consolidated retained earnings attributable to the Company
included an appropriation of RMB 64459076 (2023: RMB 55900659 ) to surplus reserve
made by the subsidiaries.
37 Operating income and operating costs
20242023
Item
Income Cost Income Cost
Principal activities 3196761585 1360000070 4309556631 1754792956
Other operating activities 80516762 32602329 75207704 32190701
Total 3277278347 1392602399 4384764335 1786983657
Including: Revenue from
contracts with 3271223512 1387836538 4380255840 1783149498
customers
Rent income 6054835 4765861 4508495 3834159
(1) Disaggregation of revenue from contracts with customers:
Type of contract 2024 2023
By type of goods or services
- Liquor 3196761585 4309556631
- Others 74461927 70699209
By timing of transferring goods or services ?
- Revenue recognised at a point in time 3271223512 4380255840
170Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Geographical regions of operating income and operating costs：
20242023
Type of contract
Income Cost Income Cost
By geographical regions
- China 2685914511 1031980984 3761534793 1378286484
- Other countries and regions 591363836 360621415 623229542 408697173
Total 3277278347 1392602399 4384764335 1786983657
38 Taxes and surcharges
Item 2024 2023
Consumption tax 185547704 239887676
Urban maintenance and construction tax 23268173 35197172
Education surcharges 16775249 23177137
Property tax 33918780 34003219
Tax on the use of urban land 9869535 10331175
Stamp duty 4022461 5289257
Others 360727 1849935
Total 273762629 349735571
39 Selling and distribution expenses
Item 2024 2023
Marketing fee 322040390 490535793
Salaries and benefits 294724158 313083923
Labour service fee 86440275 93243814
Advertising fee 63037709 75527637
Depreciation expense 51846831 48882915
Design and production fee 19561846 32182656
Travelling expenses 29989425 29318913
Trademarks expenses 17770743 27515798
Storage rental 25233942 27290488
Conference fee 16578022 19309557
Water electricity and gas fee 12987461 16830073
Others 72769618 66061209
Total 1012980420 1239782776
171Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
40 General and administrative expenses
Item 2024 2023
Salaries and benefits 96337276 87857355
Depreciation expenses 99816234 89486538
Repair costs 12001516 11978855
Administrative expenses 19512898 19929523
Amortisation of greening fee 17550658 17409398
Amortisation expenses 15903477 16202523
Safety production costs 9793378 10743063
Security and cleaning fee 8593907 8326301
Contracting fee 3913648 4337738
Others 30488889 37719564
Total 313911881 303990858
41 Financial expenses
Item 2024 2023
Interest expenses from loans and payables 30125387 31297810
Interest expenses from lease liabilities 4136343 4502287
Interest income from deposits (34643667) (30571465)
Exchange losses 10911603 5002117
Other financial expenses 2306407 852710
Total 12836073 11083459
172Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
42 Other income
Related to
Item 2024 2023
assets/income
Government grants
Industrial development support project 4100000 4100000
related to assets
Xinjiang Industrial Revitalization and Government grants
14220001422000
Technological Transformation Project related to assets
Wine production capacity construction Government grants
1200000400000
project related to assets
Government grants
Subsidies for retaining wall 988000 638000
related to assets
Special funds for the maintenance of Government grants
-2079711
wine cellars related to assets
Engineering technology transformation Government grants
-580000
of information system project related to asse
Others - Government grants related to Government grants
396617329207
assets related to assets
Special funds for the development of
16700000 9237716 Related to income
enterprises
Tax rebates 13297771 19533196 Related to income
Regional sales incentive fund 2800000 - Related to income
Talent development funds from Shihezi
2200000 1500000 Related to income
government
Wine Industry Development Project 1224301 2684281 Related to income
Funds for the integration development
536000 1000000 Related to income
project of agricultural industry
Others - Government grants related to
7749221 8019688 Related to income
income
Total 52613910 51523799
Other income during reporting period has been included in non-recurring gains and losses.
173Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
43 Investment (losses) /income
Investment (losses) /income by items
Item 2024 2023
Long-term equity investment losses under
(4420872)(712480)
equity method
Investment profit/(loss) arising from disposal
of subsidiaries and long-term equity - 24559930
investments
Total (4420872) 23847450
44 Credit reversal
Item 2024 2023
Accounts receivable 5545725 1397658
Other receivable (3726890) -?
Total 1818835 1397658
45 Impairment losses
Item 2024 2023
Fixed assets -? 10363383
Inventories 1450966 3143575
Goodwill 6014534 -
Total 7465500 13506958
46 Gains/(loss) from asset disposals
Item 2024 2023
Gains/(loss) from asset disposals 132116926 (134133)
Note: The Group's gains on disposal of assets in 2024 mainly include proceeds of RMB
127400859 from the disposal of the vineyard in Zhuqiao Town. please refer to Note V.6.
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 2024 2023
Insurance compensation 1709700 452242
Net income from fine 1501900 9325229
Others 1766330 2214799
Total 4977930 11992270
Non-operating income during reporting period has been included in non-recurring gains and
losses.
174Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Non-operating expenses
Item 2024 2023
Losses from disposal of non-current assets 1868546 573560
Donations provided 1416240 1212015
Compensation penalty and fine expenses 127736 80403
Losses from scrapping of packaging materials - 1137256
Others 320552 425176
Total 3733074 3428410
Non-operating expenses during reporting period has been included in non-recurring gains and
losses.
48 Income tax expenses
Item Note 2024 2023
Current tax expense for the year based on
115078031216588992
tax law and regulations
Changes in deferred tax assets/liabilities (1) (1850459) 4844455
Total 113227572 221433447
(1) The analysis of changes in deferred tax is set out below:
Item 2024 2023
Origination of temporary differences (1850459) 4844455
Total (1850459) 4844455
(2) Reconciliation between income tax expenses and accounting profit:
Item 2024 2023
Profit before taxation 427554857 747466156
Estimated income tax at 25% 106888714 186866539
Effect of different tax rates applied by subsidiaries 1503486 2070828
Effect of non-taxable income (Note) (25961339) -
Effect of non-deductible costs expense and losses 6891065 4978035
Effect of using deductible losses for which no
deferred tax asset was recognized in previous
periods (3134547) -
Effect of deductible losses of deferred tax assets not
recognised for the year 25217629 25756996
Deferred tax assets written-off 1822564 1761049
Income tax expenses 113227572 221433447
Note: In December 2024 the Company recognized gains or losses from disposal of assets of
RMB 127400859 due to the disposal of assets related to the vineyard in Zhuqiao Town
among which gains from disposal of biological assets amounted to RMB103845356. See
Note V. 6 for details.
175Yantai Changyu Pioneer Wine Co. Ltd. 2024 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:
20242023
Consolidated net profit attributable to ordinary
305210999532438907
shareholders of the Company
Weighted average number of ordinary shares
684370832685464000
outstanding
Basic earnings per share (RMB/share) 0.45 0.78
Weighted average number of ordinary shares is calculated as follows:
20242023
Issued ordinary shares at the beginning of the year 685464000 685464000
Effect of repurchasing shares (1666666) -
Effects of unlocking of ordinary shares subject to
573498-
sales restrictions
Weighted average number of ordinary shares at the
684370832685464000
end of the year
(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 2024 2023
Consolidated net profit attributable to
ordinary shareholders of the Company (a) 305210999 532438907
(Dilute)
Weighted average number of ordinary
(b) 684370832 685670893
shares outstanding (Dilute)
Diluted earnings per share (RMB/share) 0.45 0.78
(a) Consolidated net profit attributable to ordinary shareholders of the Company (diluted) is
calculated as follows:
20242023
Consolidated net profit attributable to
305210999532438907
ordinary shareholders of the Company
Consolidated net profit attributable to
ordinary shareholders of the Company 305210999 532438907
(diluted)
176Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(b) The weighted average number of the Company’s ordinary shares (diluted) is calculated
as follows:
?20242023
Weighted average number of ordinary shares
684370832685464000
at 31 December
Diluted adjustments: ? ?
Effects of restricted shares - 206893
Weighted average number of ordinary shares
684370832685670893
(diluted) at the end of the year
50 Cash flow statement
(1) Cash relating to operating activities
a. Proceeds relating to other operating activities:
Item 2024 2023
Government grants 45969993 45677242
Interest income from bank 29707469 27375399
Penalty income 1501900 9325229
Recovery of prior years’ trademarks right
-120930641
receivables
Others 3857611 16077111
Total 81036973 219385622
b. Payments relating to other operating activities:
Item 2024 2023
Selling and distribution expenses 512511750 539874320
General and administrative expenses 105557429 99254521
Others 23092431 36569908
Total 641161610 675698749
(2) Cash relating to investing activities
a. Proceeds relating to significant investing activities:
Item 2024 2023
Recovery of fixed deposits 464200000 238200000
b. Payments relating to significant investing activities:
Item 2024 2023
Investments in fixed deposits 288650000 464200000
Acquisition of fixed assets and construction in
74604013110067855
progress
Total 363254013 574267855
177Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(3) Cash relating to financing activities
a. Proceeds relating to other financing activities:
Item 2024 2023
Repurchase of treasury shares(Note V.33) 178084318 -
Cancellation of restricted shares (Note V.33) 6487150 -
Cash paid for lease 26235103 31931214
Payment for acquisition of non-controlling
1650691514623400
interests
Payment of capital reduction - 20674509
Total 227313486 67229123
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 364981445 459993522 - (608834621) - 216140346
Long-term loan 66616443 47965738 - - (63944978) 50637203
Lease liabilities 85038335 - 2184052 (2085636) (57593922) 27542829
Non-current liabilities due
78523993-82733169(81307393)-79949769
within one year
Other accounts payable -
--347336613(347336613)--
dividends payable
Other accounts payable -
--34261730(34261730)--
interest payable
Other accounts payable -
14623377-1883538(16506915)--
payables for equities
Other accounts payable -
payables for repurchase of 103411919 - - (6487150) (26220343) 70704426
treasury shares
Total 713195512 507959260 468399102 (1096820058) (147759243) 444974573
178Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 2024 2023
Net profit 314327285 526032709
Add: Credit/asset impairment losses 5646665 12109300
Depreciation of fixed assets and
302028852317061135
investment property
Amortisation of intangible assets 18740240 16932862
Amortisation of long-term deferred
2165842218514442
expenses
Amortisation of productive biological
1383353313800290
assets
Depreciation of ROU assets 20744479 22107603
(Profits)/losses from disposal of fixed
assets intangible assets and other (132116926) 707693
long-term assets
Financial expenses 32778256 32287868
Equity incentive (reversal)/expenses (4016467) 30735755
Investment losses/(profits) 4420872 (23847450)
(Increase)/decrease in deferred tax
(474895)5174683
assets
Decrease in deferred tax liabilities (1375564) (330228)
(Increase)/decrease in gross inventories (140130935) 131877015
Decrease/(increase) in operating
268230903(54231481)
receivables
(Decrease)/increase in operating
(326553653)124159547
payables
Net cash flows from operating activities 397741067 1173091743
b. Significant investing and financing activities not requiring the use of cash:
Item 2024 2023
Payment of construction in progress and other
37753184?13226592
long-term assets by bank acceptances
c. Change in cash and cash equivalents:
Item 2024 2023
Cash equivalents at the end of the year 1717727551 1963155752
Less: Cash equivalents at the beginning of the
19631557521612753600
year
Net (decrease)/increase in cash and cash
(245428201)350402152
equivalents
179Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Details of cash and cash equivalents
Item 2024 2023
Cash at bank and on hand
Including: Cash on hand 27228 74951
Bank deposits available on demand 1718853539 1963080801
Closing balance of cash and cash equivalents 1718880767 1963155752
52 Assets with restrictive ownership title or right of use
Balance at the
Item Opening balance Reason for restriction
end of the year
The Company deposits and
Cash at bank and on hand 337895 1470579 Escrow account for migrant
workers' wages etc.Short-term borrowings
Account receivable (i) 73628265 35917860?
mortgage from Atrio
Short-term borrowings from
Fixed assets 37985117 32467803?
Dicot
Total 111951277 69856242
(i) As at 31 December 2024 the amount of accounts receivable with restricted ownership
is EUR 4772694 equivalent of RMB 35917860 hich refers to accounts receivable
Atrio conducted for factoring from Banco de Sabadell S.A. Etc. (31 December 2023:
EUR 9368417 equivalent of RMB 73628265).
53 Leases
(1) As a lessee
Item 2024 2023
Short-term lease expenses for which the
386346?527463
practical expedient has been applied
Total cash outflow for leases 26621449? 32458677
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 2024 2023
Lease income 6054835 4508495
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.The undiscounted lease receipts to be received by the Group after the balance sheet date are
as follows:
180Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Item 2024 2023
Within 1 year (inclusive) 5872890 5958604
Over 1 year but within 2 years (inclusive) 5872890 5872890
Over 2 years but within 3 years (inclusive) 5850872 5872890
Over 3 years but within 4 years (inclusive) 1941507 5850872
Over 4 years but within 5 years (inclusive) - 1941507
Total 19538159 25496763
VI. Research and development expenses
Presentation by nature
Item 2024 2023
Salaries 7362919 6564884
Diagnostic test fees 2600375 3448000
Consultancy fee 1412609 3039519
Material consumption 4242275 2212169
Others 3920065 2148962
Total 19538243 17413534
Including: research and development expenditures
1953824317413534
that are expensed
181Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
VII. Change of consolidation scope
The Group’s subsidiaries - Liaoning Changyu Ice Wine Winery Co. Ltd.merged Changyu (Huanren) Grape Wine Co. Ltd. ("Huanren Wine") in
December 2024.VIII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
Shareholding ratio
Principal place of Business (%)
Name of the Subsidiary Registered place Registered capital Acquisition method
business nature (or similar equity
interest)
Business combinations
Etablissements Roullet Fransac
Cognac France Cognac France Trading EUR29000 - 100 involving entities not under
(“Roullet Fransac”)
common control
Business combinations
Marketing and
Dicot Partners S.L (“Dicot”) Navarre Spain Navarre Spain EUR2000000 90 - involving entities not under
sales
common control
Vi?a Indómita S.A. Vi?a Dos Andes S.A.Marketing and Acquired throughand BodegasSantaAlicia SpA.. (“Chile Santiago Chile Santiago Chile CLP31100000000 85 -sales establishment or investmentIndomita Wine Group”)
Business combinations
Kilikanoon Estate Pty Ltd. Marketing and
Adelaide Australia Adelaide Australia AUD6420000 99 - involving entities not under
(“Australia Kilikanoon Estate”) sales
common control
Beijing Changyu Sales and Distribution Marketing and Acquired through
Beijing China Beijing China RMB1000000 100 -
Co. Ltd. (“Beijing Sales”) sales establishment or investment
Yantai Kylin Packaging Co. Ltd. Yantai Shandong Yantai Shandong Acquired through
Manufacturing RMB15410000 100 -
(“Kylin Packaging”) China China establishment or investment
Yantai Chateau Changyu-Castel Co. Yantai Shandong Yantai Shandong Acquired through
Manufacturing USD5000000 70 -
Ltd.(“Chateau Changyu”) (a) China China establishment or investment
Changyu (Jingyang) Wine Co. Ltd. Xianyang Shaanxi Xianyang Shaanxi Acquired through
Manufacturing RMB1000000 90 10
(“Jingyang Wine”) China China establishment or investment
Yantai Changyu Pioneer Wine Sales Yantai Shandong Yantai Shandong Marketing and Acquired through
RMB8000000 100 -
Co. Ltd. (“Sales Company”) China China sales establishment or investment
Shanghai Changyu Sales and Distribution Marketing and Acquired through
Shanghai China Shanghai China RMB1000000 100 -
Co. Ltd. (“Shanghai Sales”) sales establishment or investment
182Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Shareholding ratio
Principal place of Business (%)
Name of the Subsidiary Registered place Registered capital Acquisition method
business nature (or similar equity
interest)Yantai Changyu Wine Sales Co. Ltd. (“Wines Yantai Shandong Yantai Shandong Marketing and Acquired throughRMB5000000 90 10Sales”) China China sales establishment or investment
Yantai Changyu Pioneer International Yantai Shandong Yantai Shandong Marketing and Acquired through
RMB5000000 70 30
Co. Ltd. (“Pioneer International”) China China sales establishment or investment
Hangzhou Changyu Wine Sales Co. Ltd. Hangzhou Zhejiang Hangzhou Zhejiang Marketing and Acquired through
RMB500000 - 100
(“Hangzhou Changyu”) China China sales establishment or investment
Ningxia Changyu Grape Growing Co. Ltd. Yinchuan Ningxia Acquired through
Ningxia China Plating RMB1000000 100 -
(“Ningxia Growing”) China establishment or investment
Huanren Changyu National Wines Sales Co. Benxi Liaoning Marketing and Acquired through
Benxi Liaoning China RMB2000000 100 -
Ltd. (“National Wines”) China sales establishment or investment
Liaoning Changyu Golden Icewine Valley Co. Benxi Liaoning Acquired through
Benxi Liaoning China Manufacturing RMB64687300 100 -
Ltd. (“Golden Icewine Valley”) China establishment or investment
Yantai Development Zone Changyu Trading Yantai Shandong Yantai Shandong Marketing and Acquired through
RMB5000000 - 100
Co. Ltd. (“Development Zone Trading”) China China sales establishment or investment
Beijing AFIP Meeting Center Miyun Beijing Acquired through
Miyun Beijing China Services RMB500000 - 100
(“Meeting Center”) China establishment or investment
Beijing AFIP Tourism and Culture Miyun Beijing Acquired through
Miyun Beijing China Tourism RMB500000 - 100
(“AFIP Tourism”) China establishment or investment
Changyu (Ningxia) Wine Co. Ltd. Acquired through
Ningxia China Ningxia China Manufacturing RMB1000000 100 -
(“Ningxia Wine”) establishment or investment
Yantai Changyu Chateau Tinlot Co. Ltd. Yantai Shandong Yantai Shandong Wholesale and Acquired through
RMB400000000 65 35
(“Chateau Tinlot”) China China retail establishment or investment
Xinjiang Chateau Changyu Baron Balboa Co. Shihezi Xinjiang Shihezi Xinjiang Acquired through
Manufacturing RMB550000000 100 -
Ltd. (“Chateau Shihezi”) China China establishment or investment
Ningxia Chateau Changyu Moser XV Yinchuan Ningxia Yinchuan Ningxia Acquired through
Manufacturing RMB2000000 100 -
Co. Ltd. (“Chateau Ningxia”) China China establishment or investment
Shaanxi Chateau Changyu Rena Co. Ltd. Xianyang Shaanxi Xianyang Shaanxi Acquired through
Manufacturing RMB20000000 100 -
(“Chateau Changan”) China China establishment or investment
Yantai Changyu Wine Research &
Yantai Shandong Yantai Shandong Acquired through
Development Centre Co. Ltd. Manufacturing RMB805000000 100 -
China China establishment or investment
(“R&D Centre”)
Xinjiang Changyu Sales Co. Ltd. Shihezi Xinjiang Shihezi Xinjiang Marketing and Acquired through
RMB10000000 - 100
(“Xinjiang Sales”) China China sales establishment or investment
Ningxia Changyu Trading Co. Ltd. Yinchuan Ningxia Yinchuan Ningxia Marketing and Acquired through
RMB1000000 - 100
(“Ningxia Trading”) China China sales establishment or investment
Shaanxi Changyu Rena Wine Sales Xianyang Shaanxi Xianyang Shaanxi Marketing and Acquired through
RMB3000000 - 100
Co. Ltd. (“Shanxi Sales”) China China sales establishment or investment
Penglai Changyu Wine Sales Co. Penglai Shandong Penglai Shandong Marketing and Acquired through
RMB5000000 - 100
Ltd.(“Penglai Sales”) China China sales establishment or investment
183Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Shareholding ratio
Principal place of Business (%)
Name of the Subsidiary Registered place Registered capital Acquisition method
business nature (or similar equity
interest)
Laizhou Changyu Wine Sales Co. Ltd. Laizhou Shandong Laizhou Shandong Marketing and Acquired through
RMB1000000 - 100
(“Laizhou Sales”) China China sales establishment or investment
Francs Champs Participations SAS Investment Acquired through
Cognac France Cognac France EUR32000000 100 -
(“Francs Champs”) and trading establishment or investment
Yantai Roullet Fransac Wine Sales Co. Ltd. Yantai Shandong Yantai Shandong Marketing and Acquired through
RMB1000000 - 100
(“Yantai Roullet Fransac”) China China sales establishment or investmentYantai Changyu Wine Sales Co. Ltd. (“Wine Yantai Shandong Yantai Shandong Marketing and Acquired throughRMB5000000 100 -Sales Company”) China China sales establishment or investment
Shaanxi Chateau Changyu Rena Tourism Xianxin Shaanxi Xianxin Shaanxi Acquired through
Tourism RMB1000000 - 100
Co. Ltd. (“Chateau Tourism”) China China establishment or investment
Longkou Changyu Wine Sales Co. Ltd. Yantai Shandong Yantai Shandong Marketing and Acquired through
RMB1000000 - 100
(“Longkou Sales”) China China sales establishment or investment
Yantai Changyu Cultural Tourism
Yantai Shandong Yantai Shandong Acquired through
Development Co. Ltd. Tourism RMB10000000 100 -
China China establishment or investment(“Culture Development “)Beijing Changyu AFIP Agriculture
Miyun Beijing Marketing and Acquired throughdevelopment Co. Ltd. (“Agriculture Miyun Beijing China RMB1000000 - 100China sales establishment or investmentDevelopment”)
Beijing Chateau Changyu AFIP Global Acquired through
Beijing China Beijing China Manufacturing RMB642750000 92 -
Co. Ltd. (“AFIP”) (b) establishment or investment
Yantai Changyu Wine Culture Museum Co. Yantai Shandong Yantai Shandong Acquired through
Tourism RMB500000 - 100
Ltd. (“Museum”) China China establishment or investment
Yantai Changyu Culture Tourism Production Yantai Shandong Yantai Shandong Acquired through
Tourism RMB5000000 - 100
Sales Co. Ltd. (“Culture Sales”) China China establishment or investment
Yantai Changyu International Window of the
Yantai Shandong Yantai Shandong Acquired through
Wine City Co. Ltd. Tourism RMB60000000 - 100
China China establishment or investment
(“Window of the Wine City”)
Yantai KOYA Brandy Chateau Co. Ltd. Yantai Shandong Yantai Shandong Acquired through
Manufacturing RMB10000000 100 -
(“Chateau KOYA”) China China establishment or investment
Changyu (Shanghai) International Digital
Marketing and Acquired through
Marketing Center Limited Shanghai China Shanghai China RMB50000000 100 -
sales establishment or investment
(“Digital Marketing”)
Shanghai Changyu Guoqu Digital Technology
Marketing and Acquired through
Co. Ltd. Shanghai China Shanghai China RMB6000000 - 51
sales establishment or investment
(“Shanghai Guoqu”)
Tianjin Changyu Yixin Digital Technology Co. Marketing and Acquired through
Tianjin China Tianjin China RMB10000000 - 51
Ltd. (“Tianjin Yixin”) sales establishment or investment
Shanghai Changyu Yixin Digital Technology Marketing and Acquired through
Shanghai China Shanghai China RMB10000000 - 51
Co. Ltd. (“Shanghai Yixin”) sales establishment or investment
184Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Shareholding ratio
Principal place of Business (%)
Name of the Subsidiary Registered place Registered capital Acquisition method
business nature (or similar equity
interest)
Yantai Creighton Catering Company Limited Yantai Shandong Yantai Shandong Acquired through
Services RMB1000000 - 100
(“Creighton Catering”) China China establishment or investment
Weimeisi (Shanghai) Enterprise Development Marketing and Acquired through
Shanghai China Shanghai China RMB10000000 100 -
Co. Ltd (“Weimeisi Shanghai”) sales establishment or investment
Ningxia Longyu Food Trading Co. Ltd. Yinchuan Ningxia Yinchuan Ningxia Marketing and Acquired through
RMB500000 100 -
("Ningxia Longyu") China China sales establishment or investment
Beijing Changyu Trading Co. Ltd. ("Beijing Miyun Beijing Marketing and Acquired through
Miyun Beijing China RMB500000 100 -
Trading") China sales 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
Comprehensive income Dividend declared to
Proportion of ownership Balance of
attributable to non-controlling
Name of the Subsidiary interest held by non-controlling interests
non-controlling interests shareholders
non-controlling interests at the end of the year
for the year during the year
AFIP 8.47% - - 56409393
IWCC 15.00% 364279 1039338 56686379
185Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
2024202320242023
Current assets 256982569 268602777 237880401 252718459
Non-current assets 373266371 384948572 306022908 314112626
Total assets 630248940 653551349 543903309 566831085
Current liabilities 16704310 26013757 150938775 167265413
Non-current liabilities 3708917 3603886 7497696 9598445
Total liabilities 20413227 29617643 158436471 176863858
Operating income 81045348 198426991 222156497 232778304
Net profit/(loss) (8859147) 2636577 11847093 11018541
Total comprehensive (8859147) 2636577 2428528 8322765
income
Cash flows from operating activities 12596851 10320219 19487568 22541317
2 Transactions that cause changes in the Group’s interests in subsidiaries that do not result in
loss of control
(1) Changes in the Group’s interests in subsidiaries:
Percentage of
Name of minority
Fiscal year Purchase date
Subsidiary shareholdings
acquired
Kilikanoon Estate
20241.5%12/01/2024
PtyLtd.
(2) Impact of transactions on non-controlling interests and equity attributable to the shareholders
of the Company:
KilikanoonEstatePt
yLtd.Acquisition cost consideration
- Cash 1883538
Less: Share of net assets in subsidiaries based on the
1102655
shares acquired
Difference (780883)??
Including: Adjustment to capital reserve (780883)?
186Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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.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.
187Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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
2024 42.1% of the Group trade receivables are due from top five customers (31 December
2023: 49.0%). 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:
2024 Contractual undiscounted cash flow Carrying
More than amount at Item Within 1 year or More than
1 to 2 years 2 years but less Total balance sheet
on demand 5 years
than 5 years date
Short-term loans 219471784 - - - 219471784 216140346
Accounts payable 417510439 - - - 417510439 417510439
Other payables 398149521 - - - 398149521 398149521
Long-term loans (including the
344421562132729666175216-121944668111798781
portion due within one year)
Lease liability (including the
201087121058566711049349151554225689915046331020
portion due within one year)
Total 1089682612 31912963 77224565 15155422 1213975562 1189930107
2023 Contractual undiscounted cash flow Carrying
More than amount at Item Within 1 year or More than
1 to 2 years 2 years but less Total balance sheet
on demand 5 years
than 5 years date
Short-term loans 378707190 - - - 378707190 364981445
Accounts payable 473352525 - - - 473352525 473352525
Other payables 555634336 - - - 555634336 555634336
Long-term loans (including the
62702857945518361890894-134048934125127311
portion due within one year)
Lease liability (including the
24050888232154842100714362047723130321238105051460
portion due within one year)
Total 1494447796 32670667 82898037 62047723 1672064223 1624147077
188Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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:
20242023
Item Effective interest Effective interest
Amounts Amounts
rate rate
Financial assets
- Cash at bank 1.70% - 2.25% 78650000 1.45% - 2.25% 579200000
Financial liabilities ? ? ? ?
- Short-term loans 5.53% - 5.94% (97958247) 6.83% - 7.30% (96562141)
- Long-term loans (including the
2.80%-4.65%(6342368)1.50%-3.28%(5860499)
portion due within one year)
- Lease liability (including the
4.65%(46331020)4.65%(105051460)
portion due within one year)
Total ? (71981635) ? 371725900
Variable rate instruments:
20242023
Item Effective interest Effective interest
Amounts Amounts
rate rate
Financial assets
- Cash at bank 0.20% - 0.35% 1718853538 0.20% - 1.61% 1638418696
Financial liabilities ? ?
1Year LPR - 1 year LPR
- Short-term loans (50000000) (100000000)
0.95%0.95%
- Short-term loans BBSW+1.5% (26365950) 1.81% - 2.54% (23272320)
- Short-term loans 3.41% - 4.65% (41816149) 3.90% - 6.95% (145146984)
- Long-term loans (including the
3.41%-7.59%(105456413)2.00%-7.59%(119266812)
portion due within one year)
Total ? 1495215026 ? 1250732580
(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.
189Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
As at 31 December 2024 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 838644 (2023: RMB1453823) and net profit by RMB 838644
(2023: RMB1453823).
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.
20242023
Balance at foreign Balance at RMB Balance at foreign Balance at RMB
currency equivalent currency equivalent
Cash at bank and on hand
- USD 906574 6516817 308229 2184232
- EUR 62611 471195 67 523
- HKD 2 1 217 196
Short-term loans ? ? ? ?
- USD 13375000 97958247 13625000 96562141
(2) The following are the exchange rates for Renminbi against foreign currencies applied by the
Group:
Balance sheet date
Average rate
mid-spot rate
2024202320242023
USD 7.1217 7.0558 7.1884 7.0871
EUR 7.7248 7.6689 7.5257 7.8592
HKD 0.9127 0.9011 0.9260 0.9062
190Yantai Changyu Pioneer Wine Co. Ltd. 2024 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 2024
USD 3433649 3433649
EUR (17200) (17200)
HKD - -
Total 3416449 3416449
31 December 2023
USD 3539172 3539172
EUR (20) (20)
HKD (7) (7)
Total 3539145 3539145
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 2024 and 31 December 2023.
191Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
XI. Related parties and related party transactions
1 Information about the parent of the Company
Registered Shareholding Percentage of Ultimate controlling party of the
Company name Business nature Registered capital
place percentage (%) voting rights (%) Company
Jointly controlled by Yantai GuoFeng
Investment Holding Ltd ILLVA
SARONNO HOLDING SPA
Changyu Group Yantai Manufacturing 50000000 51.4% 51.4%
International Finance Corporation and
Yantai Yuhua Investment and
Development Company Limited.The registered capital of the parent company did not change in 2024 while the parent company’s shareholding percentage and proportion of
voting rights changed from 49.9% to 51.4%.
192Yantai Changyu Pioneer Wine Co. Ltd. 2024 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
Information on the Group’s directors
Yantai Zhongya Zhibao Pharmaceutical Co. Ltd.supervisors and the senior
(“Zhongya Zhibao”)
management
Shanghai Yufeng Brand Management Co.Associate of the GroupLtd.("Shanghai Yufeng”)
Taizhou Changyu Winery Wine Sales Co.Associate of the GroupLtd.("Taizhou Changyu”)Yantai Guolong Wine Industry Co. Ltd (“YantaiAssociate of the GroupGuolong”)
Societe Civile Argricole Du Chateau De Mirefleurs
Subsidiaries of the joint venture
(“Mirefleurs”)
CHATEAU DE LIVERSAN (“LIVERSAN”) Subsidiaries of the joint venture
Non profit organizations associated
Yantai Changyu Wine Culture Museum ("Museum")
with the company
4 Transactions with related parties
(1) Product procurement
Related parties Nature of transaction 2024 2023
Shenma Packaging Product procurement 67118462 83991232
Zhongya Zhibao Product procurement 63910 152932
Mirefleurs Product procurement 5940476 7844108
LIVERSAN Product procurement 2997312 2602967
Total 76120160 94591239
(2) Sales of goods
Related parties Nature of transaction 2024 2023
Zhongya Zhibao Sales of goods 4977296 4306827
Shanghai Yufeng Sales of goods 1747006 5691239
Shenma Packaging Sales of goods 119317 121548
Yantai Guolong Sales of goods 13221519 9152265
Taizhou Changyu Sales of goods 4329478 -
Total 24394616 19271879
19 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(3) Purchase of fixed assets
Related parties of the Company Nature of transaction 2024 2023
Purchase of fixed
Shenma Packaging 219821 1592698
assets
Total 219821 1592698
(4) Leases
(a) As the lessor
Type of assets Lease income Lease income
Name of lessee
leased recognised in 2024 recognised in 2023
Shenma Packaging Offices and plants 1549410 1549410
Zhongya Zhibao Offices and plants 963810 963810
Museum Offices 382110 -
Total 2895330 2513220
(b) As the lessee
Type of assets Lease expense Lease expense
Name of lessor
leased recognised in 2024 recognised in 2023
Changyu Group Office buildings 1548899 1612118
Changyu Group Offices and plants 1396340 1394762
Changyu Group Offices and plants 4189020 4184286
Offices and
Changyu Group 6484558 7057143
commercial building
Total 13618817 14248309
(5) Remuneration of key management personnel
Item 2024 2023
Remuneration of key management personnel 10298399 12846007
(6) Other related party transactions
Related parties Nature of transaction 2024 2023
Changyu Group Trademarks 17770743 27515798
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 RMB17770743 this year.
19 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
5 Receivables from and payables to related parties
Receivables from related parties
20242023
Provision for Provision for
Item Related party
Book value bad and Book value bad and
doubtful debts doubtful debts
Accounts receivable Zhongya Zhibao 1041839 1126 1476262 2670
Accounts receivable Museum 416500 450 - -
Accounts receivable Shanghai Yufeng -? -? 2925045 5290
Prepayments Mirefleurs 5346651 -? 6642165 -
Prepayments Shenma Packaging 112579 -? - -
Payables to related parties
Item Related party 2024 2023
Accounts payable Shenma Packaging 20649261 27358723
Accounts payable Zhongya Zhibao 1133362 2066
Accounts payable Shanghai Yufeng 7318 -
Contract liabilities Taizhou Changyu 5927230 -
Contract liabilities Yantai Guolong 51696 14840000
Contract liabilities Shenma Packaging 11835 -
Other payables Changyu Group 18630742 27515798
Other payables Shenma Packaging 400000 400000
Other payables Yantai Guolong 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.
19 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
XIII. Share-based payments
1 Equity instruments
(1) Share options or other equity instruments outstanding at the end of the year
Granted during the year Exercised during the year Unlocked during the year Forfeited during the year
Type of grantees
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Some directors the
senior
management the
middle - - - - 1720495 26220343 425666 6487150
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.
19 6Yantai Changyu Pioneer Wine Co. Ltd. 2024 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.As at 31 December 2024 the total costs of equity-settled share-based payments in the
consolidate financial statements for the year were RMB4016468 and the accumulated
amount of equity-settled share-based payments recognised in the capital reserve for the year
amounted to RMB26719287.XIV. Commitments and contingencies
1 Significant commitment
(1) Capital commitments
Item 2024 2023
Long-term assets acquisition commitment 41228000? 50057140
Total 41228000? 50057140
(2) Operating lease commitments
As at 31 December the total future minimum lease payments under non-cancellable
operating leases of the Group’s properties were payable as follows:
Item 2024 2023
Within 1 year (inclusive) -? 50000
Total -? 50000
2 Contingencies
The Group do not have any significant contingencies as at balance sheet date.
19 7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
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 2025 the Company intends
to distribute cash dividend totaling RMB268729560 to all shareholders of 671823900
capital shares for the year ended 31 December 2024 on the basis of RMB 4 (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 2024 over 82% of revenue more than 93% 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.
19 8Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
XVII. Notes to the Company’s financial statements
1 Receivables under financing
Item Note 2024 2023
Bills receivable (1) 13110297 36322019
Total 13110297 36322019
(1) The pledged bills receivable of the Company at the end of the year
As at 31 December 2024 there was no pledged bills receivable (31 December 2023: 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 60323326
Total 60323326
As at 31 December 2024 derecognised bills endorsed by the Company to other parties which
are not yet due at the end of the period is RMB 60323326 (31 December 2023: RMB
53825102). 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 2024 31 December 2023
Dividends receivable (1) 130000000 -
Others (2) 822762563 576949997
Total 952762563 576949997
(1) Dividends receivable
Item 31 December 2024 31 December 2023
Dividends to subsidiaries 130000000 -
Total 130000000? -
19 9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Others
(a) Others by customer type:
Customer type 31 December 2024 31 December 2023
Amounts due from subsidiaries 615371507 574127885
Amounts due from related parties 207391056 2822112
Sub-total 822762563 576949997
Less: Provision for bad and doubtful debts -? -
Total 822762563 576949997
(b) The ageing analysis is as follows:
Ageing 2024 2023
Within 1 year (inclusive) 822658091 576845525
Over 1 year but within 2 years (inclusive) -? -
Over 2 years but within 3 years (inclusive) -? -
Over 3 years 104472 104472
Sub-total 822762563 576949997
Less: Provision for bad and doubtful debts - -
Total 822762563 576949997
The ageing is counted starting from the date.(c) Movements of provisions for bad and doubtful debts
As at 31 December 2024 no bad and doubtful debt provision was made for other
receivables (31 December 2023: Nil).As at 31 December 2024 the Company has no other receivables written off (31
December 2023: Nil).(d) Others categorised by nature
Nature of other receivables 2024 2023
Amounts due from subsidiaries 615371507 574127885
Compensation receivable for the disposal of a
200666088-
vineyard (Note V.6)
Others 6724968 2822112
Sub-total 822762563 576949997
Less: Provision for bad and doubtful debts -? -
Total 822762563 576949997
20 0Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(e) Five largest others-by debtor at the end of the year
Ending balance
Percentage of
Nature of the Balance at the of provision for
Debtor Ageing ending balance
receivable end of the year bad and doubtful
of others (%)
debts
Compensation
receivable for the
Company I 200666088 Within 1 year 24.4% -
disposal of a
vineyard
Amounts due
Dicot 138187227 Within 1 year 16.8% -
from subsidiaries
Amounts due
Sales Company 135160033 Within 1 year 16.4% -
from subsidiaries
Amounts due Within 1 year and
Kilikanoon Australia 56668527 6.9% -
from subsidiaries 1-2 years
Amounts due
Pioneer International 12290287 Within 1 year 1.5% -
from subsidiaries
Total 542972162 66.0% -
3 Long-term equity investments
(1) Long-term equity investments by category:
20242023
Item Provision for Carrying Provision for Carrying
Book value Book value
impairment amount impairment amount
Investments in
7737521508(48288589)76892329197690772693(42274055)7648498638
subsidiaries
Total 7737521508 (48288589) 7689232919 7690772693 (42274055) 7648498638
20 1Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Investments in subsidiaries:
Additions Additions/ Balance of
Balance at the during the (Decrease) Decrease Balance at the provision for
Subsidiary beginning of year- during the during the end of the impairment at
the year Purchase of year - Equity year year the end of the
equity Incentives year
Kylin Packaging 23543435 - 10496 - 23553931 -
Chateau Changyu 29273059 - 8713 - 29281772 -
Pioneer International 5934696 - (1469982) - 4464714 -
Ningxia Growing 36573247 - - - 36573247 -
National Wines 2000000 - - - 2000000 -
Golden Icewine Valley 63431494 22200000 6978 - 85638472 -
Chateau Beijing 588633661 - 14554 - 588648215 -
Sales Company 21259694 - (2307582) - 18952112 -
Wine Sales 5333190 - (224024) - 5109166 -
Shanghai Marketing 1000000 - - - 1000000 -
Beijing Sales 850000 - - - 850000 -
Jingyang Wine 900000 - - - 900000 -
Ningxia Wine 222309388 - - - 222309388 -
Chateau Ningxia 453747514 - 12770 - 453760284 -
Chateau Tinlot 212039586 - - - 212039586 -
Chateau Shihezi 812303784 - 8115 - 812311899 -
Chateau Changan 804197217 - 8713 - 804205930 -
R&D Centre 3290230714 - 37836 - 3290268550 -
Huanren Wine 22200000 - - (22200000) - -
Wine Sales Company 5102210 - 2920 - 5105130 -
Francs Champs 236025404 - - - 236025404 -
Dicot 233142269 - - - 233142269 11225459
Chile Indomita Wine Group 274248114 - - - 274248114 -
Australia Kilikanoon Estate 129275639 1883538 - - 131159177 37063130
Digital Marketing 1186121 49000000 5318 - 50191439 -
Chateau Koya 110328128 - 9375 - 110337503 -
Shanghai Weimeisi 7910985 - - - 7910985 -
Culture Development 92621574 - 27986 - 92649560 -
Development Zone Trading 861192 - (23587) - 837605 -
Penglai sales 1104339 - (272727) - 831612 -
Longkou sales 1611286 - - - 1611286 -
Laizhou sales 84916 - 2426 - 87342 -
Yantai Roullet Fransac 244217 - 6979 - 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 7690772693 73083538 (4134723) (22200000) 7737521508 48288589
For information about the subsidiaries of the Company refer to Note VIII.
20 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
4 Operating income and operating costs
20242023
Item
Income Cost Income Cost
Principal activities 557517562 494323439 723412525 615998040
Other operating activities 4561209 2555898 7746429 5638524
Total 562078771 496879337 731158954 621636564
Including: Revenue from contracts
557517562494323439723412525615998040
with customers
Rent income 4561209 2555898 7746429 5638524
Disaggregation of revenue from contracts with customers:
Type of contract 2024 2023
By type of goods or services
- Liquor 557517562 723412525
By timing of transferring goods or services ? ?
- Revenue recognised at a point in time 557517562 723412525
5 Investment income
Item 2024 2023
Income from long-term equity investments
368167007476632356
accounted for using cost method
Income from long-term equity investments
-54935
accounted for using equity method
Loss from disposal of subsidiaries and long-term
-(37436762)
equity investment
Total 368167007 439250529
6 Transactions with related parties
(1) Product procurement
Related parties Nature of transaction 2024 2023
Subsidiary of the parent
Product procurement 214788248 292073183
company
Other related parties of the
Product procurement 36256009 43934847
Company
Total 251044257 336008030
20 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
(2) Sales of goods
Related parties Nature of transaction 2024 2023
Subsidiary of the parent
Sales of goods 590568772 787731546
company
Other related parties of the
Sales of goods 3626159 3184145
Company
Total 594194931 790915691
(3) Guarantee
The Company as the guarantor
Amount of Inception date of Maturity date of Guarantee
Guarantee holder Currency
guarantee guarantee guarantee expired (Y/N)
Australia Kilikanoon Estate AUD 5850000 1 September 2023 2 March 2026 N
(4) Leases
(a) As the lessor
Lease income Lease income
Name of lessee Type of assets leased
recognised in 2024 recognised in 2023
Other related parties of
Offices and plants 2513220 2513220
the Company
Subsidiary of the parent
Offices buildings 85714 85714
company
Total 2598934 2598934
(b) As the lessee
Lease expense Lease expense
Name of lessor Type of assets leased
recognised in 2024 recognised in 2023
Other related parties of
Office buildings 1396340 1394762
the Company
Total Office buildings 1396340 1394762
7 Receivables from and payables to related parties
Receivables from related parties
20242023
Provision for Provision for
Item Related party
Book value bad and Book value bad and
doubtful debts doubtful debts
Other related parties
Accounts receivables 227042 245 727123 1298
of the Company
Other related parties
Prepayments 5344237 -? 4472159 -
of the Company
Subsidiary of the
Other receivables 745371507 -? 574127885 -
parent company
Subsidiary of the
Other non-current assets 1864430000 -? 1934430000 -
parent company
20 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
Payables to related parties
Item Related party 2024 2023
Other related parties of
Accounts payable 5528108 13895970
the Company
Subsidiary of the
Other payables 441845995 441681129
parent company
Other related parties of
Other payables 400000 400000
the Company
XVIII. Extraordinary gains and losses in 2024
Item Amount
(1) Profit and loss from disposal of non-current assets 132116926
Government grants recognised through profit or loss (except for
those which are closely related to the company’s normal
operations which the company is entitled to under established ?
(2)
standards in accordance with government policies and which 52613910
have a continuing impact on the profits and losses of the
company)
(3) Other non-operating income and expenses besides items above 1244856
Sub-total 185975692
(4) Tax effect (6873074)
(5) Effect on non-controlling interests after taxation (4956976)?
Total 174145642?
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.
20 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 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:
20242023
Consolidated net profit attributable to ordinary
305210999532438907
shareholders of the Company
Extraordinary gains and losses attributable to
17414564268365214
ordinary shareholders of the Company
Consolidated net profit excluding extraordinary gain
and loss attributable to the Company’s ordinary 131065357 464073693
equity shareholders
Weighted average number of ordinary shares
684370832685464000
outstanding
Basic earnings per share excluding extraordinary
0.190.68
gain and loss (RMB/share)
(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):
20242023
Consolidated net profit attributable to ordinary
305210999532438907
shareholders of the Company (diluted)
Extraordinary gains and losses attributable to
17414564268365214
ordinary shareholders of the Company
Consolidated net profit excluding extraordinary
gains and losses attributable to the Company’s 131065357 464073693
ordinary equity shareholders (diluted)
Weighted average number of ordinary shares
684370832685670893
outstanding (diluted)
Diluted earnings per share excluding extraordinary
0.190.68
gains and losses (RMB/share)
20 6Yantai Changyu Pioneer Wine Co. Ltd. 2024 Annual Report
2 Calculation of weighted average return on net assets
(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:
20242023
Consolidated net profit attributable to ordinary
305210999532438907
shareholders of the Company
Weighted average amount of consolidated net
1077355481710684054057
assets
Weighted average return on net assets 2.83% 4.98%
Calculation of weighted average amount of consolidated net assets is as follows:
20242023
Consolidated net assets at the beginning of the year 10841500988 10579053733
Effect of consolidated net profit attributable to
140140353270707233
ordinary shareholders of the Company
Effects of Restricted Share Incentive Plan 9251615 15367878
Acquisition of non-controlling interests (Note VIII.2) (715809) (1140487)
Effect of shares repurchased (Note V.32) (14840361) -
Effect of cash dividends (Note V.36) (201781969) (179934300)
Weighted average amount of consolidated net
1077355481710684054057
assets
(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:
20242023
Consolidated net profit excluding extraordinary gain
and loss attributable to the Company’s ordinary 131065357 464073693
equity shareholders
Weighted average amount of consolidated net
1077355481710684054057
assets
Weighted average return on net assets excluding
1.22%4.34%
extraordinary gain and loss
Yantai Changyu Pioneer Wine Co. Ltd.Board of Directors
April 18 2025
207
沪公网安备31011802005267号
