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 PREVAILAUDITOR’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.Page 1 of 6AUDITOR’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. Significantaccounting policies and accounting estimates” 25 and “V. Notes to the consolidated financialstatements” 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 Management’s design and operation
mainly 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;
Page 2 of 6AUDITOR’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.Page 3 of 6AUDITOR’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.Page 4 of 6AUDITOR’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.Page 5 of 6AUDITOR’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
Page 6 of 6Yantai 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 20 to 115 form part of these financial statements.
1Yantai 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 20 to 115 form part of these financial statements.
2Yantai 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 20 to 115 form part of these financial statements.
3Yantai 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 20 to 115 form part of these financial statements.
4Yantai 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 20 to 115 form part of these financial statements.
5Yantai 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 20 to 115 form part of these financial statements.
6Yantai 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 20 to 115 form part of these financial statements.
7Yantai 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 20 to 115 form part of these financial statements.
8Yantai 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 20 to 115 form part of these financial statements.
9Yantai 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 20 to 115 form part of these financial statements.
10Yantai 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 20 to 115 form part of these financial statements.
11Yantai 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 20 to 115 form part of these financial statements.
12Yantai 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
V.51(2) 1717727551 1963155752
end 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 20 to 115 form part of these financial statements.
13Yantai 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 20 to 115 form part of these financial statements.
14Yantai 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
797907849988284544
end 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 20 to 115 form part of these financial statements.
15Yantai 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 non-
VIII.2 - (780883) - - - - (780883) (1102655) (1883538)
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 20 to 115 form part of these financial statements.
16Yantai 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 non-
VIII.2 - (1244168) - - - - (1244168) (31502609) (32746777)
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 20 to 115 form part of these financial statements.
17Yantai 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) Effects of (425666) (10077952) 32707493 -? -? 22203875
restricted share
incentive plan
(2) Effects 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 20 to 115 form part of these financial statements.
18Yantai 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) Effects of
restricted share 6785559 127362115 (103411919) - - 30735755
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 20 to 115 form part of these financial statements.
19Yantai 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.
20Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
Significant non-wholly-owned subsidiaries shareholders of the 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
21Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
22Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
transferred 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.
23Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(3) Disposal of subsidiaries
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.
24Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
25Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
26Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
- 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.
27Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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).
28Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
29Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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.
30Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
31Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
32Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
33Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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 “otherchanges in 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.
34Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
- 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%
35Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
36Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
Machinery and after 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.
37Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
before satisfying the expected production and operating purpose including capitalised
borrowing costs.
38Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
39Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
40Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
41Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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..
42Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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.
43Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
44Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
- the costs that relate directly to providing those goods or services that have not yet been
recognised as expenses.
45Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
46Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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:
47Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
- 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.
48Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
49Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
50Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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:
According to CAS Bulletin No. 17 only the Group’s substantive right to defer the settlementof liabilities for more than one year after the balance sheet date (“the right to defer the
51Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024settlement of 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 basis
21% (Spain) 19% (Chile) and 10%
(VAT) for VAT payable is to deduct
(Australia)
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)
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
52Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
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
53Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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 NingxiaShaanxi and other provinces (regions cities) are all subject to a 50% reduction in “six taxesand two fees” and some subsidiaries of the Company are qualified to enjoy the tax
reduction.
54Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
55Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
3 Accounts receivable
(1) Accounts receivable by customer type are as follows:
31 December 31 December
Type
20242023
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.
56Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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)
57Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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%
The ageing is counted starting from the date when prepayments are recognised.
58Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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 31 December
20242023
Others 264598394 71496276
(1) Others by customer type:
31 December 31 December
Customer type
20242023
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).
59Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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
60Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
61Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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 equity-
year
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.
62Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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.
63Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
(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 line of Noble 7202959 -? 7202959 -? -? -?
Dragon
Upgrade of main building
1128971-?1128971-?-?-?
of AFIP
Nnigxia Chateau
museum construction - -? - 1376147 - 1376147
project
Shihezi Chateau
-?-?-?700000-?700000
Construction Project
Other Companies’
1845442-?18454421247094-1247094
Construction Project
Total 10177372 - 10177372 3323241 - 3323241
64Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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
9 - 7202959 - - 7202959 85% -? -? -? Self-raised
Noble 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
65Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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).
66Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
67Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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%.
68Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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 intra-
417770236104442560403653124100913281
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
69Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
70Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
31 December Additions during Decrease during 31 December
2023 the year the year 2024
Basic pension insurance 319251 41355245 (41352689) 321807
Unemployment insurance 1233 1210348 (1210268) 1313
Total 320484 42565593 (42562957) 323120
71Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
31 December 31 December
Note
20242023
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
72Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
73Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
30 Deferred income
31 December Additions during Decrease during 31 December
Item
2023 the year the year 2024
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 water-
829000 - (162000) 667000 grants related
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
74Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
unlocked were repurchased and cancelled. 267876 restricted shares that cannot be
75Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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..
76Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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 Net-of-tax end of the
the year Previously amount amount year
Less:
Item attributable to Before-tax recognised attributable to attributable to attributable to
Income tax
shareholders amount amount shareholders non- shareholders
expenses
of the transferred to of the controlling of the
Company profit or loss Company interests 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
31 December 31 December
Item
20242023
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.
77Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
78Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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
79Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
80Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
81Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
82Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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
115078031216588992
on 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.
83Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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)
84Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(b) The weighted average number of the Company’s ordinary shares (diluted) is calculated
as follows:
?20242023
Weighted average number of ordinary
684370832685464000
shares at 31 December
Diluted adjustments: ? ?
Effects of restricted shares - 206893
Weighted average number of ordinary
684370832685670893
shares (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
85Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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
86Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
37753184?13226592
other 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
19631557521612753600
the year
Net (decrease)/increase in cash and cash
(245428201)350402152
equivalents
87Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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:
88Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
89Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
90Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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 Shihezi Xinjiang Shihezi Xinjiang Acquired through
Manufacturing RMB550000000 100 -
Co. 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
91Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
92Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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 non-
attributable to non- non-controlling
Name of the Subsidiary interest held by non- controlling interests
controlling interests shareholders
controlling interests at the end of the year
for the year during the year
AFIP 8.47% - - 56409393
IWCC 15.00% 364279 1039338 56686379
93Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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)?
94Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
95Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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
amount at
Item More than 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
96Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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.
97Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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 Balance at RMB Balance at Balance at RMB
foreign currency equivalent foreign 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
98Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
(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.
99Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2024
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%.
100Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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
Yantai Zhongya Zhibao Pharmaceutical Co. Ltd.directors 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
101Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
(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.
102Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
The Group incurred a trademark usage fee of RMB17770743 this year.
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.
103Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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.
104Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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.
105Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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.
106Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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
31 December 31 December
Note
20242023
Dividends receivable (1) 130000000 -
Others (2) 822762563 576949997
Total 952762563 576949997
(1) Dividends receivable
31 December 31 December
Item
20242023
Dividends to subsidiaries 130000000 -
Total 130000000? -
107Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
(2) Others
(a) Others by customer type:
31 December 31 December
Customer type
20242023
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
108Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
(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
109Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
(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.
110Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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
111Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
(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
112Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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.
113Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
(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)
114Yantai Changyu Pioneer Wine Company Limited
Financial statements for the year ended 31 December 2023
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
1084150098810579053733
year
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
115
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