2022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

Stock Code: 000869， 200869 Stock Abbreviation: Changyu A， Changyu B Announcement No.: 2023-Final 01

Yantai Changyu Pioneer Wine Co. Ltd.

2022 Annual Report Abstract

April 13 2023

12022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

I. Important Notice

This Annual Report Abstract comes from the whole contents of annual report. If investors desire to

comprehensively understand the Company’s operating results financial situation and future

development plan please read the Annual Report on the media specified by the China Securities

Regulatory Commission.Except for the following director 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

the meeting personally the meeting personally meeting personally entrustee

Aldino Marzorati Director On a business trip Enrico Sivieri

Non-standard audit opinion notice

□Available □Not available

The preliminary scheme of the report period’s ordinary share profit distribution or increasing equity

with reserve deliberated by the board of the directors

□Available □Not available

Whether to increase equity with reserve

□Yes □No

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 685464000 shares we plan

to pay CNY4.5 (including tax) in cash as dividends for every 10 shares to all shareholders and send 0

bonus share (including tax). Capital reserve will not be transferred to equity.The preliminary scheme of preferred share profit distribution during the report period deliberated and

passed by the board of directors

□Available □Not available

22022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

II. Basic information of the Company

1. Brief introduction of the Company

Stock Abbreviation Changyu A Changyu B Stock Code 000869 200869

Place of Stock Listing Shenzhen Stock Exchange

Stock Abbreviation

-

before Alteration

Contact person and Authorized Representative of Securities

Secretary to the Board of Directors

information Affairs

Name Mr. Jianxun Jiang Mr. Tingguo Li

Address 56 Dama Road Yantai Shandong China 56 Dama Road Yantai Shandong China

Fax 0086-535-6633639 0086-535-6633639

Tel 0086-535-6602761 0086-535-6633656

E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn

2. Main businesses during the report period or brief introduction of products

(1) Situation of industry in which the Company operates during the report period

In 2022 the domestic wine market continued to decline due to the impact of the economic situation

and the pressure from other liquors such as Baijiu and beers. The sales volume of imported wine and

domestic wine continued the trend of “double decline” and the rising costs of raw material and

packaging further dragged down the profitability of enterprises. The vast majority of wine enterprises

were in difficulty and the domestic wine industry was still on the edge of loss.In the face of difficulties and challenges the Company persisted in taking the market as the centeradhered to the development strategy of “Focus on middle-and-high level Focus on high qualityFocus on large single product” and the marketing philosophy of “obtaining growth from the terminaland nurturing consumers” took market-oriented action to accelerate the pace of business division

reform actively carry out circle marketing and continue to promote digital transformation . In 2022

the Company realized the operating revenue of CNY3918.94million with a year-on-year decrease of

0.86% and the net profit attributable to the parent company’s shareholders of CNY428.68million

with a year-on-year decrease of 14.28% maintaining the leading role in the industry.

(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.* 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

32022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

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 including slowing domestic economic growth and strong pressure

from alternatives in recent years the competition in the market was fierce the wine consumption

continuously declined and a large number of wine production enterprises were on the brink of loss

even some wine enterprises were eliminated from the market. However seen from the long term 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 Ice Valley Zenithwirl Vermouth Rena

Baron Balboa J.LORMIN Atrio Kilikanoon and IWCC and so on. For Brandy main brands

included Koya Mminni Pagese Roullet Fransac and so on.* The production licenses of main products obtained by the Company in China

Food Food production license

Producer name Obtaining time Obtaining method

category number

Yantai Changyu Pioneer Wine Co. Approval from 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

42022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

* 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.

(3) 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 4000

distributors at home and abroad and ultimately provided to consumers.* Situation of change in the number of distributors

Number at the Increased number during Number at the

Region

beginning of 2022 this report period end of 2022

1857791936

Eastern China

56540605

South China

Central China

North China

Northwest China

Southwest China

Northeast China

HongKong MacaoTaiwan 573 29 602

China and overseas

4831824913

Total

* The Company and distributors took cash spot settlement and mainly adopted buyout distribution

mode.

20222021

Sales model Operating income Operating cost Operating income Operating cost Gross

Gross margin

(CNY) (CNY) (CNY) (CNY) margin

Distribution 3272506752 1396195485 57.34% 3263303800 1349422481 58.65%

Direct sales 646434408 284599247 5 5 .9 7 % 689763784 298367393 56.74%

Total 3918941160 1268840579994274372 57.11% 3953067584 1647789874 58.32%

52022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

* Procurement mode and procurement content

Unit：CNY’0000

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 66633.60

Tender/Price determined by quality comparison with standard price items Packaging materials 41755.50

Tender/Price determined by quality comparison with standard price items Brewing materials 2364.30

Tender/Price determined by quality comparison with standard price items Vineyard supplies 1140.30

Contract Fuel and power 4739.90

Price determined by quality comparison with standard price items Other wines and derivatives 2736

(4) Major production mode

The production mode of the Company is self-produce.

3. Key accounting data and financial indicators

(1) Key accounting data and financial indicators in recent three years

Whether the Company needs to retrospectively adjust or restate the accounting data of previous fiscal

years.□Yes □No

Unit: CNY

December 31st December 31st More or less than

December 31st 2020

2022 2021 Last year end (%)

Total assets 13171506378 13472009754 -2.23% 13102481541

Net Assets attributed to

10579053733104478841831.26%10267832644

shareholders of the listed company

More or less than

202220212020

Last year (%)

Operating revenue 3918941160 3953067583 -0.86% 3395402001

Net profit attributed to

428681411500102606-14.28%470860587

shareholders of the listed company

Net profit attributed to

shareholders of the listed company

413831359472235962-12.37%397655187

after deducting non-recurring

profits and losses

Net cash flows from operating

8688766471125382658-22.79%505146673

activities

Basic earnings per share 0.63 0.73 -13.70% 0.69

Diluted earnings per share 0.63 0.73 -13.70% 0.69

62022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

Weighted average for earning rate

4.09%4.84%-0.75%4.57%

of net assets

(2) Key accounting data by quarter

Unit: CNY

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Operating revenue 1165989959 787102176 857930890 1107918135

Net profit attributed to shareholders of

2905877446787185975890351-5668543

the listed company

Net profit attributed to shareholders of

the listed company after deducting 284168658 60140364 68081711 1440626

non-recurring profits and losses

Net cash flows from operating activities 299300737 306972858 132417260 130185792

Whether there are significant differences between above-mentioned financial indicators or their sum

and the related financial indicators in the quarterly report and semi-annual report disclosed by the

Company.□Yes □No

72022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

4. Capital stock and shareholders’ situation

(1) Number of ordinary shareholder and preferred shareholder recovering voting power and situation of shares held by top ten shareholders

Unit: share

Total number of shareholders by Total number of preferred Total number of preferred shareholder recovering

Total shareholders in the report

44371 the end of last month before the 42682 shareholder recovering voting 0 voting power by the end of last month before the 0

period

disclosure day of the annual report power by the end of report period disclosure day of the annual report

Shareholders holding more than 5% or the top 10 shareholders holding situation

Number of Pledged /marked or frozen

Name of Shareholders Character of shareholders Percentage (%) Amount of holding shares

restricted shares Share status Amount

YANTAI CHANGYU GROUP CO. LTD. Domestic non-state legal person 50.40% 345471556 0 - 0

GAOLING FUND L.P. Foreign legal person 3.08% 21090219 0 - 0

BBH BOS S/A FIDELITY FD - CHINA FOCUS FD Foreign legal person 1.12% 7683016 0 - 0

SHENWAN HONGYUAN SECURITIES (HONGKONG) LIMITED Foreign legal person 1.06% 7293952 0 - 0

#JIANG Fengdi Domestic natural person 0.77% 5295000 0 - 0

GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED Foreign legal person 0.73% 4998831 0 - 0

Haitong International Securities Company Limited-Account Client Foreign legal person 0.73% 4986502 0 - 0

HONG KONG SECURITIES CLEARING COMPANY LIMITED Foreign legal person 0.64% 4420086 0 - 0

VANGUARD EMERGING MARKETS STOCK INDEX FUND Foreign legal person 0.59% 4026863 0 - 0

FIDELITY CHINA SPECIAL SITUATIONS PLC Foreign legal person 0.55% 3779202 0 - 0

Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant action

The explanation for the associated relationship and accordant action

relationship with the other 9 listed shareholders while the relationship among the other shareholders is unknown.Explanation for the top 10 shareholders who involved in financing activities

The top 10 shareholders do not involve in financing activities and stock trade business.and stock trading business (if have)

(2) Number of preferred shareholder and situation of preferred shares held by top ten preferred shareholders

□Available □Not available

There are no shares held by preferred shareholders during the report period.

82022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

(3) Introduction for property right and control relations between the Company and its actual controllers

92022 Annual Report Abstract of Yantai Changyu Pioneer Wine Co. Ltd.

5. Existing bond position on the submit date of annual report approval

□Available □Not available

III. Important Matters

None

Yantai Changyu Pioneer Wine Co. Ltd.Board of Directors

April 13 2023

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