Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Yantai Changyu Pioneer Wine Co. Ltd.
2024 Semi-annual Report
Final 2024-03
August 22 2024
1Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Table of Contents
I、Important Notice Table of Contents and Definitio... 3
II、Brief Introduction for the Company and Main Fin... 6
III、Discussion and Analysis of Management Team ...... 9
IV、Corporate Governance ............................ 27
V、Environmental and Social Responsibility .......... 29
VI、Major issues .................................... 32
VII、Changes in Shares and the Shareholders’ Situat.. 40
VIII、Related Situation of Preferred Shares ......... 48
IX、Related Situation of Bonds ...................... 48
X、Financial Report ................................. 48
3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
I. Important Notice Table of Contents and Definition
The board of directors，the board of supervisors，directors supervisors and senior executivesof the Company guarantee the truthfulness accuracy and completeness of the contents
contained in the semi-annual report with no false records misleading statements or
significant omissions and undertake individual and joint legal liabilities.Mr. Hongjiang ZHOU (Person in charge of the Company) Mr. Jianxun JIANG (Person in
charge of accounting work) and Ms. Cuimei GUO (Person in charge of accounting organ &
Accountant in charge) assure the truthfulness accuracy and completeness of the financial
report in the semi-annual report.Except for the following directors other directors attended this board meeting for reviewing
this semi-annual report in person.Name of director not attending Position of director not attending Reason of not attending the Name of
the meeting personally the meeting personally meeting personally entrustee
Zhuquan WANG Independent director On a business trip Huirong LIU
Renzhu YU Independent director On a business trip Qinglin LIU
Forward-looking statements such as future plans and development strategies covered in this
report do not constitute a substantial commitment of the Company to investors. Investors are
advised to pay attention to investment risks.Regarding significant risks that the Company may face during the business process please
refer to “10. Risks and response measures” in “III Discussion and Analysis of Manage mentTeam” in this report. Investors are suggested to read carefully and pay attention to investment
risks.The Company has no plan to distribute cash dividends and bonus shares and capital reserve
will not be transferred to equity.
4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Reference Documents
(1) The original of 2024 Semi-annual Report autographed by the Chairman.
(2) The Financial Statements autographed and sealed by the chairman chief accountant and
accountants in charge.
(3) The Prospectus and Public Offering Announcement for Stock B in 1997; The Prospectus
and The Shares’ Change & Public Offering Announcement for Stock A in 2000.
(4) The originals of all documents and announcements that the Company made public during
the report period in the newspapers designated by China Securities Regulatory Commission.
5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Definition
Definition Item Refers to Definition Content
Company/The Company Refers to Yantai Changyu Pioneer Wine Co. Ltd.Changyu Group/Controlling Shareholder Refers to Yantai Changyu Group Co. Ltd.CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
KPMG Huazhen Refers to KPMG Huazhen LLP (Limited Liability Partnership)
CNY Refers to Chinese Yuan
6Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
II. Brief Introduction for the Company and Main Financial Indicators
1. Company’s information
Stock Abbreviation Changyu A Changyu B Stock Code 000869，200869
Stock Abbreviation after Alteration None
Place of Stock Listing Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese Name 张裕
Legal Name in English YANTAI CHANGYU PIONEER WINE COMPANY LIMITED
Abbreviation of English Name CHANGYU
Legal Representative Hongjiang ZHOU
2. Contact person and information
Secretary to the Board of Directors Authorized Representative of Securities Affairs
Name Jianxun JIANG Tingguo LI
Address 56 Dama Road Yantai Shandong China 56 Dama Road Yantai Shandong China
Tel. 0086-535-6602761 0086-535-6633656
Fax. 0086-535-6633639 0086-535-6633639
E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn
3. Other information
1) Contact information of the Company
Whether there is any change in the Company’s registered address office address
corresponding postcode website address and email address during the report period
□Available □Not available
There is no change in the Company’s registered address office address corresponding
postcode website address and email address during the report period. Please refer to 2023
Annual Report for detailed information.
2) Information disclosure and filing location
Whether there is any change in information disclosure and filing location during the report
period
□Available □Not available
There is no change in the name of the newspaper for information disclosure the address of
the website designated by the China Securities Regulatory Commission for publishing the
semi-annual report and the filing location of the Company’s semi-annual report selected by
the Company during the report period. Please refer to 2023 Annual Report for detailed
information.
7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
3) Other relevant information
Whether there is any change in other relevant information during the report period
□Available □Not available
4. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of
previous fiscal years.□Yes □No
During the report In the same period More or less than the same
period of last year period of last year (%)
Operating revenue (CNY) 1522309436 1966738485 -22.60%
Net profit attributed to shareholders of the listed
221177382363569436-39.17%
company (CNY)
Net profit attributed to shareholders of the listed
company after deducting non-recurring profits 194883882 324321975 -39.91%
and losses (CNY)
Net cash flows from operating activities (CNY) 203880364 527919786 -61.38%
Basic earnings per share (CNY/share) 0.32 0.53 -39.62%
Diluted earnings per share (CNY/share) 0.32 0.53 -39.62%
Weighted average return on equity 2.03% 3.40% -1.37%
At the end of this At the end of last More or less than the end of
report period year last year (%)
Total assets (CNY) 12297889483 13336267204 -7.79%
Net Assets attributed to shareholders of the
1058353374910841500988-2.38%
listed company (CNY)
5. Differences in accounting data under PRC accounting standards and international
accounting standards
1) Differences of net profit and net asset in the financial report disclosed according to
both international accounting standards and PRC accounting standard
□Available □Not available
There are no differences for net profit and net assets in the financial report disclosed
according to both international accounting standards and PRC accounting standards during
the report period.
2) Differences of net profit and net asset in the financial report disclosed according to
both foreign accounting standards and PRC accounting standards
□Available □Not available
There are no differences of net profit and net asset in the financial report disclosed according
to both foreign accounting standards and PRC accounting standards during the report period.
6. Item and amount of non-recurring gains and losses
8Yantai Changyu Pioneer Wine Co. Ltd. 2023 Semi-annual Report
□Available □Not available
Unit：CNY
Item Amount Explanation
Profits and losses on disposal of non-current assets (including the write-off part of the
-95670
provision for asset impairment has been made)
Government grants included in the current profits and losses(except for those recurring
government grants that are closely related to the entity’s operation in line with related 33630640
regulations and have proper basis of calculation)
Other non-operating income and expenditure besides above-mentioned items 1166359
Less: Amount affected by income tax 8371006
Amount affected by minority equity (after tax) 36823
Total 26293500
Specific situation of other gains and losses projects conforming to the definition of
non-recurring profit and loss
□Available □Not available
There does not exist specific situation of other profit and loss items conforming to the
definition of non-recurring profit and loss.Explanation for regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company’s Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
□Available □Not available
There is no situation regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company’s Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
III. Discussion and Analysis of Management Team
1. Main businesses during the report period
During the report period the Company’s main business was production and operation of wine
and brandy.The Company need to comply with the disclosure requirements of “Food and LiquorManufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
1) Situation of the industry in which the Company operates
During the report period the Company’s main business was production and operation of wine
and brandy thus providing domestic and foreign consumers with healthy and fashionable
alcoholic drinks. Compared with earlier stage there were no significant changes happened to
the Company’s main business. The wine industry that the Company involved in was still in
growth stage. Being affected by many factors in recent years the competition in domestic
wine market was fierce and coupled with other dominant wine squeeze increasingly serious
the wine consumption continuously declined and a large number of wine production
enterprises have further increased losses even some wine enterprises were eliminated from
the market. There are no clear signs of a reversal for the industry. However seen from the
long term the Company believes that the existing consumption concept might change with
the increase of people’s income level and their pursuit of a relaxed romantic and healthy
lifestyle. More domestic wine would be drunk by people and wine would enter more and
more household consumption. The situation of current low average consumption of domestic
wine would gradually improve. The Company was at the forefront in the domestic
wine market and was significantly ahead of major domestic competitors.
2) License obtained
Food Food production license
Producer name Obtaining time Obtaining method
category number
Yantai Changyu Pioneer Wine Co. Approval from
Alcohol 2021.06.01 SC11537060100050
Ltd. government authority
Beijing Chateau Changyu AFIP Approval from
Alcohol 2022.08.22 SC11511280920745
Global Co. Ltd. government authority
Liaoning Changyu Golden Icewine Approval from
Alcohol 2021.03.25 SC11521052200370
Valley Co. Ltd. government authority
1 0Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Ningxia Chateau Changyu Moser Approval from
Alcohol 2018.01.25 SC11564010500657
XV Co. Ltd. government authority
Xinjiang Chateau Changyu Baron Approval from
Alcohol 2017.08.25 SC11565900100392
Balboa Co. Ltd. government authority
Yantai Chateau Changyu-Castel Approval from
Alcohol 2021.06.08 SC11537063600172
Co. Ltd. government authority
Shaanxi Chateau Changyu Rena Approval from
Alcohol 2020.10.19 SC11561040400532
Co. Ltd. government authority
Yantai Chateau Koya Brandy Co. Approval from
Alcohol 2021.01.11 SC11537063601165
Ltd. government authority
3) Explanation for other significant events
During the report period there did not exist the trademark ownership dispute food quality
issue or food safety incident etc. that had a significant impact on the Company.Brand operation
The Company’s products were divided into two series: wine and brandy. For wine main
brands included Changyu Noble Dragon AFIP Longyu Golden Icewine Valley Zenithwirl
Vermouth Rena Baron Balboa Donelly Atrio Kilikanoon and IWCC and so on. For Brandy
main brands included Koya Liquan Mminni Pagese Roullet Fransac and so on.Major sales mode
The Company’s main sales mode was the distribution mode and main sales channel was
offline sales that is the Company’s products were distributed to sales terminals through
approximately 5000 distributors at home and abroad and ultimately provided to consumers.Distribution mode
□Available □Not available
* Situation of change in the number of distributors is shown as follows.At the beginning of Increased number during At the end of the
Region
the report period the report period report period
Eastern China 2065 140 2205
South China
Central China
North China 352 -6 346
11Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Northwest China
Southwest China 463 -7 456
Northeast China
70737744
HongKong MacaoTaiwan China and overseas
Total 5059 147 5206
* Sales information of the Company’s top 5 distributors during the report periodNo. Customer name Sales amount (CNY） Proportion in total sales（%）
1 Rank 1st 17674484 1.16%
2 Rank 2nd 15277431 1%
3 Rank 3rd 13334943 0.88%
4 Rank 4th 13096188 0.86%
5 Rank 5th 12308913 0.81%
Total -- 71691959 4.71%
The ratio of sales in self-owned exclusive shop exceeds 10%
□Available □Not available
Sales of online direct sales
□Available □Not available
First half of 2024 First half of 2023
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 1264253556 497864362 60.62% 1711154537 699449920 59.12%
Direct sales 258055880 97884368 62.07% 255583948 106009472 58.52%
Total 1522309436 595748730 60.87% 1966738485 805459392 59.05%
The change in sales prices of major products accounting for more than 10% of total operating
income in current report period exceeds 30% compared with those in last report period
□Available □Not available
Procurement mode and procurement content
Unit: CNY
Amount of major
Procurement mode Procurement content
procurement contents
Qualitative and price comparison Raw materials including grape/bulk wine 219174681
Invitation for bids / qualitative and price comparison Packaging materials 184136100
Invitation for bids / qualitative and price comparison Brewing materials 9180981
1 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Invitation for bids / qualitative and price comparison Goods and materials for vineyard 432081
Contract Fuel and power 16007230
Qualitative and price comparison Other alcoholic products and derivatives 7245468
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total
procedure amount
□Available □Not available
The year-on-year change in the price of major outsourced raw materials exceeds 30%
□Available □Not available
Major production mode
The production mode of the Company is self-produce.Commissioned processing and production
□Available □Not available
Major components of operating costs
* Classification of sector
Unit: CNY
First half of 2024 First half of 2023 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 266328765 46.35% 378409335 48.11% -29.62%
Packing material 144493097 25.15% 220678705 28.06% -34.52%
Liquor
Wages 17738659 3.09% 26735936 3.40% -33.65%
and
alcoholic Manufacturing 94920089 16.52% 99862087 12.70% -4.95%
beverage expenses
Contract
511100268.90%607984127.73%-15.94%
performance costs
* Classification of product
Unit: CNY
First half of 2024 First half of 2023 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 199534226 46.08% 269460895 47.65% -25.95%
Packing material 106908471 24.69% 150989468 26.70% -29.19%
Wine Wages 14382917 3.32% 22021926 3.89% -34.69%
Manufacturing
7445028317.19%7898943213.97%-5.75%
expenses
1 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Contract
377358128.71%440365687.79%-14.31%
performance costs
Blending liquor 66794539 47.18% 108948440 49.30% -38.69%
Packing material 37584626 26.55% 69689237 31.54% -46.07%
Wages 3355742 2.37% 4714010 2.13% -28.81%
Brandy Manufacturing
2046980614.46%208726559.45%-1.93%
expenses
Contract
133742149.45%167618447.59%-20.21%
performance costs
Yield and inventory
Sector Item Unit First half of 2024 First half of 2023 Year-on-year increase or decrease (%)
Sales Ton 35129 42791 -17.90%
Liquor and
alcoholic Yield Ton 34633 35128 -1.41%
beverage Inventory Ton 25585 22411 14.16%
Sales Ton 26010 29779 -12.65%
Wine Yield Ton 23798 25918 -8.18%
Inventory Ton 14694 14471 1.54%
Sales Ton 9119 13012 -29.91%
Brandy Yield Ton 10835 9210 17.64%
Inventory Ton 10891 7940 37.17%
2. Analysis of core competitiveness
Compared with the participants in the arena of the Chinese wine competition sector the
Company owns following advantages:
Firstly the Company has a large brand influence. Main brands used have a long history.“Changyu” “Noble Dragon” and “AFIP” are all “China famous brands” that have strong
influence and good reputation.Secondly the Company has set up a nationwide marketing network. The Company has
formed a “three-level” marketing network system mainly composed of the Company’s
salesmen and distributors and the online sales platform has had a certain scale and strong
influence owing strong marketing ability and market exploitation ability.Thirdly the Company has strong scientific prowess and a product R&D system. Relying on
the country’s “State-level Wine R&D Center” the Company has owned powerful winemaker
1 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
team mastered advanced winemaking technology and production processes and had strong
product innovation capacity and perfect quality control system.Fourthly the Company is in possession of a lot of grape-growing bases that are compatible
with its development requirements. The Company has developed a great deal of vineyards in
the most suitable areas for wine grape growing such as Shandong Ningxia and Xinjiang and
its subsidiary overseas enterprises also own matching grape bases in local area making the
overall scale and structure generally meet the Company’s needs for future development.Fifthly products in high medium and low-grade as well as varieties and categories are all
complete. Over 100 varieties of series products such as wine brandy and sparkling wine
covers various grades including high medium and low-grade which can meet different
consumer groups’ demands. The Company has taken the dominant status in the domestic
wine industry after many years’ development and has comparative advantages in the future
competition.Sixthly the Company has a relatively perfect motivation system. Most of Company’s
employees indirectly hold the Company’s equity through controlling shareholders. There are
high consistency between employee benefits and shareholders benefits in favor of motivating
employees to create value for shareholders.Seventhly the Company has set up flexible and efficient decision-making mechanism. The
Company’s core management team always maintains a working style of unity and pragmatic
and flexible and efficient decision-making mechanism which makes the Company can deal
with market changes more calmly.Eighthly the global production capacity layout has been basically completed. The Company
has completed production capacity layout in China France Chile Spain Australia and other
major wine producing countries in the world enabling making better use of global
high-quality raw material resources capital talents and advanced production processes and
technologies to provide consumers with diversified quality products and better serve
consumers.Based on the above reasons the Company has formed relatively strong core competence and
will maintain a relatively dominant position in the future predictable market competition.
3. Analysis in main business
Summarization
During the reporting period affected by the overall economic environment and consumption
downturn weak wine consumption foundation and other factors the domestic wine market
demand continues to shrink the profitability of wine enterprises is deteriorating the market
investment and development and innovation ability is seriously insufficient coupled with the
extrusion of other advantageous wines the development trend of the industry is still hovering
1 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
at a low level and there is no obvious sign of stopping the decline.In the face of adverse situation the Company insisted in taking the market as the centerinsisted the development strategy of “Focus on high quality Focus on middle-and-high levelFocus on big product” and the marketing concept of “Increasing sales from the terminal andcontinuously-cultivated consumers” without wavering vigorously expanded the consumer
market steadily improved product quality continuously carried out marketing innovation and
consumer cultivation activities and constantly improved the incentive mechanism achieving
favorable results. In the first half year the Company realized the operating income of
CNY1522.31million with a year-on-year decrease of 22.60% and the net profit attributable
to shareholders of the parent company of CNY221.18million with a year-on-year decrease of
39.17%. During the report period the Company mainly conducted following work:
First the Company insisted market-oriented strategy and took efforts to improve market
competitiveness. The Company insisted on taking the market as the center constantly
improved the market layout according to the development stage and market characteristics of
different markets formulated differentiated strategies from product positioning personnel
setting product layout channel construction marketing and other aspects and concentrated
superior resources to do well in key market development; focused on key products including
Longyu Koya and Noble Dragon deepened the construction of channel outlets and the
operation of core consumer groups and continued to create core large products; constantly
optimized and digital marketing to promote product sales; improved the index assessment
system continued to promote marketing transformation increased circle marketing and
banquet marketing activities and further promoted the optimization of product structure;
strengthened the training of marketing personnel established a high-quality marketing team
continued to improve the marketing organizational structure and effectively enhanced the
market coordination ability while ensuring the flexible operation of each business unit.Second the Company continued to promote product quality upgrading in comparison with
well-known international and domestic best-selling brands. The Company continued to take
international and domestic well-known best-selling brands as benchmark strengthened
market research carried out various process tests and constantly promoted product quality
upgrading improving the internal quality of products in different amplitude; completed the
application work of “Hao Pin Shandong” National Quality Benchmark Shandong
Manufacturing·Qilu Quality Yantai Key Industry Chain Quality Tackle Competition
Geographical Indication and other projects. The Company’s products participated in the 2024
International Wine (Spirit) Competitions (Mundus Vini Berliner Wein Trophy DWA CIV
IWC IWSC CMB FIWA and LSC) and domestic wine competitions (Asian Wine
Competition CADA Qing Zhuo Award New Product) and won a total of 76 awards
including 12 grand gold medals (all international grand gold awards) 35 gold medals (28
international gold awards 7 domestic gold awards) 11 silver medals and 9 bronze medals.Third the Company strengthened the control in key costs in the production system
intensified energy conservation and emission reduction strictly implemented the procurement
strategy of reliable quality with reasonable price and price comparison optimized and
restructured the production organization system scientifically arranged production batches
1 6Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
and production times constantly reduced production costs and improved production and
operation efficiency.Fourth the Company strengthened financial management and audit supervision and improved
the quality of business operation. The Company took various measures to save financing
costs through strengthening capital management; increased interest income through time
deposits structured deposits agreed deposits and other ways; reasonably carried out tax
planning to prevent unnecessary fiscal and tax expenditures. The Company also gave full
play to the function of audit supervision insisted on doing routine audits including off-office
auditing and economic benefit auditing and strengthened the audit in key expenses such as
advertising expenses of business departments; explored the innovation of auditing work
methods and models and improved the level of audit supervision by constantly strengthening
audit quality control.Fifth the Company conducted the buyback of B shares to protect the interests of investors.As of July 17 2024 the Company has repurchased 19999993 B shares in the way of
centralized bidding through the special securities account for share buyback accounting for
approximately 8.6206% of the Company’s B shares and approximately 2.8891% of the
Company’s total share capital.Although the Company achieved certain results in the first half of 2024 through the adoption
of above measures its operating income and net profit declined in different amplitude and it
is facing great pressure to fully complete the 2024 financial target and the performance target
determined in the restricted shares incentive plan for 2024 annual. In order to achieve the
business objectives the Company will focus on following work in the second half of 2024:
The first is to do the best to explore the market and try to reverse the adverse situation of
declining sales. The Company will further rectify the marketing team adhere to the
combination of external introduction and internal training and create a high-quality
marketing team that matches the current new business form of alcohol consump tion;
strengthen the circle marketing and banquet promotion to strive for breakthrough; pay
attention to the principal contradiction implement the focus strategy and ask each sales
division to continue to focus on corresponding regional markets brands a nd channels;
increase the innovation of Grappie system accelerate the establishment of the catering-direct
distribution system promote the operation of online channel and strengthen the brand
communication innovation of Grappie in the new media era.The second is to continuously improve product quality and highlight product characteristics.The Company will strictly implement the system of “weekly inspection monthly scheduling”
strengthen the blind comparison of internal quality further highlight the Chinese
characteristics and Chinese cultural elements of products and form a series of characteristic
products with “Chinese terroir Changyu style and world quality”.The third is to expand the tourism business to enhance brand empowerment and sell products.The Company will further improve the operation level of tourism projects including Changyu
Wine Culture Museum experience centers in Qingdao airport and Yantai airport Longyu
Estate and Chateau AFIP and complete the renovation of exhibition in Chateau Rena at a
lower cost.
1 7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
The fourth is to strictly control key expenses and guard against operational risks. The
Company will adhere to several basic tasks such as developing high-margin products
limiting low-margin products controlling unsalable products monitoring the use of
advertising fee and conducting major raw materials procurement based on price comparison
strengthen daily tracking scheduling and auditing work and strengthen the control in key
costs in order to eliminate potential risks and improve business efficiency.The fifth is to complete the acquisition of grape material through scientific organization and
scheduling. The Company will on the basis of extensive research and sufficient
demonstration in accordance with the principle of reliable quality with reasonable price
properly plan the quantity variety structure and production area of grapes and other raw
materials this year to ensure the timely and full acquisition of high-quality grapes and other
raw materials providing reliable raw material guarantee for the Company’s future
development.Year-on-year change in key financial data
Unit: CNY
Year-on-year
The same period
This period increase or Cause of significant changes
of last year
decrease
Mainly due to the decline in product sales
Operating revenue 1522309436 1966738485 -22.60%
volume
Mainly due to the decline in operating
Operating cost 595748730 805459392 -26.04%
income
Mainly due to the decrease in marketing
Sales expense 391916515 453001710 -13.48%
expenses
Mainly due to the increase in the expense of
Management expense 132945615 128695395 3.30%
restricted share incentive plan
Financial expense 3223510 3226433 -0.09% No significant change
Income tax expense 92758345 130350513 -28.84% Mainly due to the decline in operating profit
R&D expense 6748675 6653626 1.43% No significant change
Net cash flow generated in Mainly due to the decline in operating
203880364527919786-61.38%
operating activities income
Net cash flow generated in Mainly due to an increase in the recovery of
101776789 -251021334 Not available
investment activities time deposits
Net cash flow generated in Mainly due to the increase in cash paid for
-704692341-467609294-50.70%
financing activities the buy-back of B shares
Net increased amount of Mainly due to the decrease in net cash flow
-400166503-189672821-110.98%
cash and cash equivalents from financing activities
1 8Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Significant change in the profit form and profit source of the Company during the report
period
□Available □Not available
There is no significant change in the profit form and profit source of the Company during the
report period.Composition of operating revenue
Unit: CNY
This report period The same period of last year Year-on-year
Proportion in Proportion in increase or
Amount Amount
operating revenue operating revenue decrease (%)
Total operating revenue 1522309436 100% 1966738485 100% -22.60%
Sector-classified
Sector of liquor and
1522309436100%1966738485100%-22.60%
alcoholic beverage
Product-classified
Wine 1105466306 72.62% 1371894155 69.75% -19.42%
Brandy 356049751 23.39% 534282319 27.17% -33.36%
Tourism 43588165 2.86% 43589121 2.22% 0%
Others 17205214 1.13% 16972890 0.86% 1.37%
Area-classified
Domestic 1277499221 83.92% 1687735613 85.81% -24.31%
Overseas 244810215 16.08% 279002872 14.19% -12.26%
The cases of industry product or area accounting for over 10% in the Company’s operating
revenue or operating profit
□Available □Not available
Unit: CNY
Year-on-year Year-on-year Year-on-year
Operating Operating Gross increase or increase or increase or
revenue cost margin decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross margin
Sector-classified
Sector of liquor and
152230943659574873060.87%-22.60%-26.04%1.82%
alcoholic beverage
Product-classified
Wine 1105466306 433011709 60.83% -19.42% -23.43% 2.05%
1 9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Brandy 356049751 141578927 60.24% -33.36% -35.93% 1.60%
Tourism 43588165 11945702 72.59% 0% -3.22% 0.91%
Others 17205214 9212392 46.46% 1.37% 38.90% -14.46%
Area-classified
Domestic 1277499221 445552765 65.12% -24.31% -26.65% 1.11%
Abroad 244810215 150195965 38.65% -12.26% -24.16% 9.64%
Under the condition that the statistical caliber of the Company’s main business data is
adjusted during the report period the Company’s main business data adjusted on the basis of
caliber at the end of report period in recent one period.□Available □Not availableThe Company need to comply with the disclosure requirements of “Food and LiquorManufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
4. Analysis in non-main business
□Available □Not available
5. Analysis in assets and liabilities
1) Significant change in assets composition
Unit: CNY
At the end of this report period At the end of last year Proportion
Explanation
Proportion in Proportion in increase or
on significant
Amount the total assets Amount the total assets decrease
changes
(%)(%)(%)
No significant
Monetary funds 1659684740 13.50% 2217693647 16.63% -3.13%
changes
No significant
Account receivables 172184919 1.40% 382132334 2.87% -1.47%
changes
Contract assets — — — — — —
No significant
Inventory 2886202651 23.47% 2765390587 20.74% 2.73%
changes
No significant
Investment real estate 23237000 0.19% 24482831 0.18% 0.01%
changes
No significant
Long-term equity investments 36353528 0.30% 38285620 0.29% 0.01%
changes
No significant
Fixed assets 5687285125 46.25% 5795082569 43.45% 2.80%
changes
No significant
Construction in progress 10097466 0.08% 3323241 0.02% 0.06%
changes
No significant
Right-of-use asset 112742536 0.92% 121745910 0.91% 0.01%
changes
No significant
Short-term borrowings 202057523 1.64% 364981445 2.74% -1.10%
changes
2 0Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
No significant
Contract liability 138471595 1.13% 175278849 1.31% -0.18%
changes
No significant
Long-term borrowings 36651931 0.30% 66616443 0.50% -0.20%
changes
No significant
Lease liability 68134685 0.55% 85038335 0.64% -0.09%
changes
2 1Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2) Main overseas assets situation
□Available □Not available
Unit：CNY
Formation Operation Control measures for safeguarding of Earning Proportion of overseas assets Whether there are
Details of assets Assets scale Location
reasons mode asset security condition in the Company’s net assets significant impairment risks
The Company participates in making important
Hacienda Y Vinedos Acquisition of Independent
542039993 Spain decisions through board of directors and 6510153 5.12% No
Marques Del Atrio. SL equity operation
appoints CFO on financial management.Establishment
Indomita Wine Independent The Company participates in making important
of joint 538029550 Chile -528407 5.08% No
Company Chile S.p.A. operation decisions through board of directors.venture
Kilikanoon Estate Pty. Acquisition of Independent The Company participates in making important
168788947 Australia -1652806 1.59% No
Ltd. equity operation decisions through board of directors.Sole
Francs Champs Independent The Company participates in making important
proprietorship 216426784 France -2738940 2.04% No
Participations SAS operation decisions through board of directors.establishment
Other information explanation None
3) Assets and liabilities measured at fair value
□Available □Not available
4) Limitations of assets rights up to the end of the report period
* For information about assets mortgage and pledge please refer to Announcement on External Guarantee and Announcement on Guarantee provided
by Spanish Atrio Company for Bank Loan disclosed on China Securities Journal Securities Times and CNINFO (http://www.cninfo.com.cn) in 2016
2017 2018 2019 2020 and 2023.
* For the types and amounts of mortgaged and pledged assets please refer to “20. Assets with ownership or use right restrictions” in “7. Notes to items
2 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Reportin the consolidated financial statements” in the note to the financial statements of this report.
6. Analysis in investment condition
1) Overall situation
□Available □Not available
Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation
303533113460000777.26%
2) Cases of acquired significant equity investments during the report period
□Available □Not available
3) Cases of significant ongoing non-equity investments during the report period
□Available □Not available
Unit: CNY
Accumulated Accumulated Reasons for
Whether
Involved Investment actual realized unreached
belongs to
Investment sectors of amount during investment Capital Project Estimated earnings up planning Disclosure
Project name fixed Disclosure index (if have)
mode investment the report amount up to the source progress earnings to the end of schedule and date
assets
projects period end of the report the report estimated
investment
period period earnings
Yantai Changyu Please refer to Resolution
Liquor and
International Achieve the Announcement of Seventh
Self-constr alcoholic Owned
Wine City Yes 0 1705784100 100% 0 0 planned 2017.04.22 Session Board of Directors 4th
ucted beverage fund
Blending and progress Meeting Resolution
sector
Cooling Center Announcement of Seventh
2 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Session Board of Directors 8th
Yantai Changyu
Achieve the Meeting Resolution
International Self-constr Owned
Yes 0 1136520000 100% 0 0 planned 2017.04.22 Announcement of Seventh
Wine City ucted fund
progress Session Board of Directors
Bottling Center
10th Meeting Resolution
Announcement of Eighth
Oak Barrel Achieve the
Self-constr Owned Session Board of Directors 4th
Procurement Yes 22991311 230845511 92% 0 0 planned 2021.04.28
ucted fund Meeting Resolution
Project progress
Announcement of Eighth
Intellectualized
Session Board of Directors
Upgrade and
11th Meeting Resolution
Renovation Achieve the
Self-constr Owned Announcement of Ninth
Project of Yes 2817000 62930000 100% 0 0 planned 2022.04.27
ucted fund Session Board of Directors 5
th
Changyu Wine progress
Meeting and Resolution
Culture
Announcement of Ninth
Museum
Session Board of Directors 9th
New Meeting disclosed on
fermentation CNINFO
Achieve the
workshop Self-constr Owned (http://www.cninfo.com.cn/)
Yes 4545000 4545000 20% 0 0 planned 2024.04.12
project of ucted fund
progress
Ningxia
Chateau
Changyu
Industrial Park Achieve the
Self-constr Owned
infrastructure Yes 0 0 0% 0 0 planned 2022.04.27
ucted fund
improvement progress
project
2 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Total -- -- -- 30353311 3140624611 -- -- 0 0 -- -- --
4) Financial assets investment
* Security investment situation
□Available □Not available
There are no security investments for the Company during the report period.* Derivatives investment
□Available □Not available
There are no derivatives investments for the Company during the report period.
5) The usage situation of raised capital
□Available □Not available
There are no usage situations of raised capital for the Company during the report period.
7. Sale of significant assets and equities
1) Sale of significant assets
□Available □Not available
The Company did not sell significant assets during the report period.
2) Sale of significant equities
□Available □Not available
8. Analysis of main holding and joint stock companies
□Available □Not available
Situation of main subsidiaries and joint stock companies affecting over 10% of the Company’s net profit
Unit: CNY
Company name Company type Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Yantai Changyu Pioneer Wine Sales Sales of alcoholic
Subsidiary CNY8million 480155448 116109299 877511336 215256197 164756999
Co. Ltd. products
2 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Yantai Changyu Wine Sales Co. Sales of alcoholic
Subsidiary CNY5million 283195251 272301864 310571158 51903408 38927556
Ltd. products
Changyu Trading Co. Ltd. in Sales of alcoholic
Subsidiary CNY5million 77346336 15263030 71562870 6074416 4452411
Development Zone of Yantai products
Laizhou Changyu Wine Sales Co. Sales of alcoholic
Subsidiary CNY1million 75120978 1082779 121102449 6929256 5166732
Ltd. products
Acquisition and disposal of subsidiaries during the report period
□Available □Not available
Explanation on main holding and joint stock companies
None
26Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
9. Situation of the structured subjects controlled by the Company
□Available □Not available
10. Risks and response measures
1) Risk in price fluctuation of raw materials
Grapes are the Company’s main raw materials. The grape’s yield and quality are affected to a
certain extent by the natural factors such as drought wind rain frost and snow. These force
majeure factors greatly influence the quantity and price of the grapes in this Company orders
and add the uncertainty to the Company’s production and operation. Therefore the Company
will lower the risks that are likely to affect grape quality and result in price fluctuation by
means of expanding the self-run vineyards strengthening the vineyard management and
optimizing the layout of vineyards.
2) Risk in uncertainty of market input and output
To cope with the cutthroat market competition and to meet the needs for market development
the Company has input more and more capital in the market and the sales expense has taken
up a higher percentage point in the business revenue. The input-output ratio will affect the
Company’s operating results to a great extent and the risk that some investments may not
reach the expectations is likely to occur. Therefore the Company will strengthen market
research and analysis enhance market forecast accuracy and continue to perfect the
input-output evaluation system to ensure the investments in market to be satisfactory as
expected.
3) Risk in product transport
The Company’s products are fragile and sent to different places all over the world mostly by
sea railway and expressway. The peak season of sales is usually in cold winter and close to
the spring festival when market has a great demand. At that time the natural and human
factors such as serious shortage of transport capacity resulting from busy flow of people and
goods wind snow freezing as well as traffic accidents make the transport departments
difficult to send products to markets in time and safely. As a result it makes this Company
have to face the risks of missing the peak season of sales. Therefore the Company will adopt
all methods possible like making precise sales prediction and well designed connection of
production and sales reasonably arranging production and transport means and making use of
more available warehouses in different places to lower these kinds of risks.
4) Risk in investment faults
The Company invested many projects in the previous periods and the investment amounts
were relatively large. For individual project owing to the influence of various factors it led to
have the risks of facing with the investment amount out of budget or hardly taking back the
expected investment earnings. The Company will take an adequate argument and scientific
decision-making for investment projects try hard to reduce and avoid investment risks.
5) Risk in exchange rate
The Company’s overseas subsidiaries export products to many different countries and the
export amount is relatively large. There may be exchange losses or gains due to exchange rate
fluctuation.
6) Other risks
During the production and sales of the Company’s products it may be affected by force
majeure such as wars typhoons earthquakes etc..
11. Implementation of the “The Improvement Both on Quality and Return” action plan
Whether the company disclosed the “The Improvement Both on Quality and Return” action
plan
□Yes □No
2 7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
IV. Corporate Governance
1. Information for the shareholders’ meeting and interim shareholders’ meeting held
during the report period
1)Information for the shareholders’ meeting during the report period
Participation Convening Disclosure
Session Meeting type Meeting Resolution
ratio of investors date date
According to the voting results the meeting
deliberated and approved the Plan on
First Interim
Interim Buy-Back of Partial B Shares of Yantai
Shareholders’
Shareholders’ 55.38% 2024.03.11 2024.03.12 Changyu Pioneer Wine Co. Ltd. Proposal
Meeting in
Meeting on Replacement and Election of Directors
2024
and Proposal on Authorization to Buy Back
Shares.According to the voting results the meeting
deliberated and approved the 2023 Annual
Board of Directors’ Work Report 2023
2023 Annual Annual Annual Board of Supervisors’ Work Report
Shareholders’ Shareholders’ 54.04% 2024.05.17 2024.05.18 2023 Annual Report Proposal on 2023
Meeting Meeting Annual Profit Distribution Proposal on
2024 Annual Financial Budget and
Proposal on Appointment of Certified
Public Accounting Firm.According to the voting results the meeting
deliberated and approved the Proposal onAmendment of the Company’s “Articles ofAssociation” Proposal on Amendment ofthe Company’s “Rules of Rrocedure forSecond InterimInterim Shareholders’Meeting” Proposal on
Shareholders’Shareholders’ 52.23% 2024.06.25 2024.06.26 Amendment of the Company’s “Rules ofMeeting inMeeting Rrocedure for Board of Directors”
2024
Proposal on Amendment of the Company’s“Rules of Rrocedure for Board ofSupervisors” and Proposal on Formulationof “Working System of IndependentDirectors”.
2)Request for convening interim shareholders’ meeting by priority shareholders owing
recovered voting right
□Available □Not available
2. Changes in the Company’s directors supervisors and senior executives
□Available □Not available
Name Position held Type Date Reason
Ms. Dianxin CHEN has resigned as a director
Dianxin CHEN Director Outgoing 2024.03.11
of the Company due to job adjustment.Nominated by Yantai Changyu Group Co.Xunzhang LIU Director Be elected 2024.03.11
Ltd. and elected as a director of the Company.
2 8Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
3. Situation of profit distribution and capitalization of capital reserve into share capital
during the report period
□Available □Not available
The Company plans not to distribute cash dividends or give bonus shares or make capitalization of
capital reserve into share capital.
4. Implementation of the Company’s equity inventive plan employee stock ownership
plan or other employee incentive measures
□Available □Not available
1) Equity incentive
In 2023 the Company implemented the restricted share incentive plan for 203 middle-level
managers and core cadres and granted them 5.2956 million shares of restricted share. On July 22
2024 the Company’s Fourth Interim Board of Directors Meeting in 2024 and the Second Interim
Board of Supervisors in 2024 deliberated and approved the Proposal on the Achievement for
Lifting Restrictions in the First Period of Lifting Restriction Regarding the Company's 2023
Restricted Share Incentive Plan. According to the relevant provisions of the Company’s Incentive
Plan the conditions for lifting restrictions in the first restriction-lifted period of restricted shares
granted under the Company’s Incentive Plan in 2023 have been met and the number of restricted
shares that can be released during the first restriction-lifted period of the Company’s 172 incentive
subjects that meet the conditions for the release of the restricted shares are 1720495 shares; the
number of bought back and cancelled restricted shares are 425666 shares due to various reasons.
2) Implementation of employees’ share ownership plan
□Available □Not available
3) Other employee incentives
□Available □Not available
2 9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
V. Environmental and Social Responsibility
1. Major environmental situation
Whether the listed company and its subsidiaries belong to major polluters published by the
environmental protection department
□Yes □No
Policies and industry standards related to environmental protection
The Environmental Protection Law of People’s Republic of China The Water Pollution’s
Prevention and Control Law of People’s Republic of China The Air Pollution’s Prevention
and Control Law of People’s Republic of China The Environmental Noise Pollution’s
Prevention and Control Law of People’s Republic of China The Environmental Solid Waste
Pollution’s Prevention and Control Law of People’s Republic of China and The
Environmental Protection Regulations of Liaoning Province; the national’s General
Principles of Hazardous Waste Identification Standards Surface Water Environmental
Quality Standards Groundwater Environmental Quality Standards Environmental Air
Quality Standards Acoustic Environmental Quality Standards Emission Standard for
Environmental Noise at the Boundary of Industrial Enterprises Comprehensive Discharge
Standard for Boiler Air Pollutants The Limiting Value of Occupational Exposure to
Hazardous Factors in the Workplace (Chemical Hazardous Factors) and Comprehensive
Wastewater Discharge Standard of Liaoning Province.Administrative permit for environmental protection
It has been approved in the Huanhuanjianzi (2016) No.24 issued by the Environmental
Protection Bureau of Huanren Manchu Autonomous County.Name of major Quantity Distribution Total Total Condition
Name of Discharge Implemented
pollutants and Mode of of situation of volume approved of
company or concentra pollution discharge
particular discharge discharg discharge of volume of excessive
subsidiary tion standard
pollutants e outlet outlet discharge discharge discharge
Confirmed Emission Standard
Discharge in line with for Air Pollutants of
outlet of national Boiler
boiler standard (GB13271-2014)
Organized
Chateau chimney Graphical Meeting Emission Standard
Changyu exhaust gas
and Signs for the for Odor Pollutants
Icewine Co. inorganizedexh 2 35m3/d 120m3/d No
Ltd. discharge Environment national (GB14554-93) 4a
Liaoning aust gas waster outlet of al Protection standards in Class 2 of
water noise
factory (GB15562.1- Emission Standard
waste 1995) for Environmental
water (GB15562.2- Noise at the
1995) Boundary of
3 0Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Industrial
Enterprises
(GB12348-2008)
Comprehensive
Wastewater
Discharge Standard
of Liaoning
Province
(DB21/1627-2008)
Treatment of pollutants
The exhaust gas SO2 and NOX produced by this company's boiler are discharged through
ceramic tube dust removers and bag dust removers. A wastewater treatment station has been
constructed. The wastewater treatment process adopts the treatment process of hydrolys is
aerobiont. Production wastewater and domestic sewage are treated by the in-plant wastewater
treatment station and then discharged into the waste water treatment plant in Beidianzixiang
Town.Emergency plan for emergent environmental incident
The Company has formulated a comprehensive emergency plan for emergent environmental
incident.Investment in environmental governance and protection and payment of environmental
protection tax
The Company has made sufficient investment in environmental protection done a good job
in environmental governance and protection and paid environmental protection tax in full and
timely according to law.Environmental self-monitoring program
The Company has formulated a complete environmental self-monitoring program.Administrative penalties due to environmental issues during the reporting period
Name of Company or Penalty Violation Impact on the Production and Rectification Measures of
Penalty Result
Subsidiary Reason Situation Operation of the Listed Company the Company
None None None None None None
Other environmental information that should be made public
No
Measures taken for reducing carbon emissions and effects
□Available □Not available
Other related environmental information
No
2. Social responsibility performance
3 1Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
1) The Company served the rural revitalization well adopted the mode of “company + farmer”
or “company + cooperative + farmer” reformed the sloping fields of Jiaodong Peninsular and
the northwestern area including Ningxia and Xinjiang and so on the uncultivated land or the
barren land into graperies. By means of providing capital and technology of viticulture to
fruit growers scientific management level of vineyard had been improved. The Company
spared no effort to popularize the non-pollution and mechanized planting methods
continuously improved production efficiency of grape base and quality of grape and reduced
production cost of grape and labor intensity. Through the above measures on the one hand it
promotes the effective use of land resources promotes the organic integration of rural
households and modern agriculture and helps increase agricultural efficiency farmers’
incomes and rural development; on the other hand it improves the local ecological
environment and brings huge ecological benefits.
2) The Company provided counterpart supports to Huangchengyang village in Longkou City
an old revolutionary base area by purchasing local agricultural products to help solve the
problem of slow sales.
3) The Company provided help and assistance to the Company’s in-service or retired
employees with poor families as well as the Company’s in-service or retired employees with
chronic or serious illnesses.
3 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
VI. Major issues
1. Commitments that the Company’s actual controllers shareholders related parties acquirers and the Company and other related
commitment parties have implemented during the report period and have not implemented up to the end of the report period
□Available □Not available
Commitment Commitment
Commitments Commitment party Commitment type Commitment content Implementation
time period
Commitments at the initial public Yantai Changyu Group Co.Solve horizontal competition Non-horizontal competition 1997.05.18 Forever Has been performing
offering or refinancing Ltd.Commitment under timely
Yes
implementation or not
Whether or not to have specific None
reasons of the unimplemented
commitment and next steps
3 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2. Non-operational occupation capital of the listed company by controlling shareholder
and its related parties
□Available □Not available
There is no non-operational occupation capital of the listed company by controlling
shareholder and its related parties during the report period.
3. Illegal external guarantee
□Available □Not available
There is no illegal guarantee situation during the report period.
4. Appointment and dismissal of certified public accountants
Whether the semi-annual report has been audited
□Yes □No
The semi-annual report has not been audited.
5. Explanation from the board of directors and the board of supervisors for the
“Non-standard Audit Report” during this report period
□Available □Not available
6. Explanation from the board of directors for the “Non-standard Audit Report” of last
year
□Available □Not available
7. Issues related with bankruptcy reorganization
□Available □Not available
There are no related issues of bankruptcy reorganization happened at the end of the report
period.
8. Litigation Issue
Material litigation and arbitration
□Available □Not available
There are no material litigation and arbitration during the report period.Other Litigation Issue
□Available □Not available
9. Penalty and rectification
□Available □Not available
10. Credit of the Company its controlling shareholder and actual controller
□Available □Not available
11. Major related transactions
1) Related transactions in relation to routine operations
□Available □Not available
3 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Proportion Whether
Approved Available
Amount accounting for exceed Cleari
Related Relationsh Pricing transaction market price Disclosur
Type Content Price (CNY amount of approved ng Disclosure index
party ip principle quota (CNY of similar e date
‘0000) similar transaction form
‘0000) transactions
transactions quota
Expected
Announcement on
Purchase 2024 Annual
Yantai Controlled
Purchase and Routine Related
Shenma by the Determine
and commission Agreemen 2024.04. Transaction
Packagin same d by 3425 18.60% 9000 No Cash No
commission processing t pricing 12 disclosed in China
g Co. parent agreement
processing packaging Securities
Ltd. company
materials JournalSecurities
Timesand
CNINFO in 2024
Total -- -- 3425 -- 9000 -- -- -- -- --
Details of the return of large sales No
Actual performance of the estimated total amount for
daily operations related transactions by category that No
will occur during this period.Reason for the deference between transaction price Not available
and market reference price(if available)
2) Related transactions in relation to acquisition and sales of assets or equity
□Available □Not available
There are no related transactions in relation to acquisition or sales of assets or equity during the report period.
3) Related transactions in relation to common foreign investment
□Available □Not available
There are no related transactions in relation to common foreign investment during the report period.
4) Related credit and debt dealings
□Available □Not available
3 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Whether or not existing non-operating related credit and debt transactions
□Yes □No
There is no non-operating related credit and debt transactions during the report period.
5) Deals of related financial companies
□Available □Not available
There is no deposit loan credit granting or other financial business between the related financial companies and related parties.
6) Deals between financial companies controlled by the Company and relayed parties
□Available □Not available
There is no deposit loan credit granting or other financial business between the financial companies controlled by the Company and related parties.
7) Other major related transactions
□Available □Not available
For other major related transactions please refer to the Announcement of 2023 Annual Expected Routine Related Transaction and the Section XI
“ Related Parties and Related Transaction” of the Financial Report of this report.Disclosure website of interim report for major related transaction
Name of interim announcement Disclosure date of interim announcement Name of disclosure website for interim announcement
Announcement of 2024 Annual Expected Routine Related 2024.04.12 CNINFO (www.cninfo.com.cn)
Transaction
12. Major contracts and execution conditions
1) Trusteeship contract and lease issues
* Trusteeship situation
□Available □Not available
There is no trusteeship situation during the report period.
3 6Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
* Contract situation
□Available □Not available
There is no such contract situation during the report period.* Lease situation
□Available □Not available
Explanation for lease situation
On January 1st 2022 the Company renewed the Space Lease Agreement with the controlling
shareholder Yantai Changyu Group Company Limited. The Company leased the space with
15196.94 square meters locating at No. 174 Shihuiyao Road Zhifu District Yantai City. The
rent per year is CNY 1.4645 million with a rental period of 5 years from January 1 st 2022 to
December 31st 2026. On January 1st 2022 the Company’s subordinate Sales & Marketing
Co. of Yantai Changyu Pioneer Wine Company Limited Brandy Sales Division renewed the
Space Lease Agreement with the controlling shareholder Yantai Changyu Group Company
Limited leasing the space with 42552.83 square meters locating at No. 1 Jichang Road
Zhifu District Yantai City and the space with 3038 square meters locating at 56 Dama Road
Zhifu District Yantai City which are all under the name of controlling shareholder. The rent
of above spaces per year is CNY 4.3935 million with a rental period of 5 years from January
1st 2022 to December 31st 2026.
In 2023 this Company signed a house-leasing contract with Yantai Shenma Packaging
Company Limited. According to this contract since July 1st 2023 this Company leased
property to Yantai Shenma Packaging Company Limited for a business purpose with the
annual rent of CNY 1626880. This contract expires on June 30th 2028.Project whose profit and loss brought for the Company reach more than 10% of the total
profit during the report period
□Available □Not available
There are no lease projects whose profit and loss brought for the Company reach more than
10% of the total profit during the report period.
3 7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2) Major guarantee
□Available □Not available
Unit: CNY’0000
External guarantee of the Company and its subsidiaries（excluding guarantee to subsidiaries）
Disclosure date of Countergua
Actual date of Whether or not Whether or not belong
related Guarantee Actual guarantee Guarantee Collateral rantee
Guarantee object name occurrence (date of Guarantee Period complete to related-party
announcement about quota amount type (if have) situation (if
agreement) implementation guarantee
guarantee quota have)
Yantai Economic and Joint liability
Technological Development 2016.12.22 34160 2016.12.21 34160 assurance; - - 10 years Yes No
Zone Management Council. Mortgage
Total of the external guarantee quota approved Total of the actual external guarantee amount during the
00
during the report period (A1) report period (A2)
Total of the external guarantee quota approved by Balance of the actual external guarantee by the end of the
341600
the end of the report period (A3) report period (A4)
Guarantee situations between the Company and subsidiaries
Disclosure date of
Countergua Whether or not Whether or not belong
related Guarantee Actual date of Actual guarantee Guarantee
Guarantee object name Collateral rantee Guarantee Period complete to related-party
announcement about quota occurrence amount type
situation implementation guarantee
guarantee quota
Yantai Changyu Wine Joint liability
Research and Development 2016.12.22 72176 2016.12.21 72176 assurance; - - 10 years Yes Yes
Company Limited Mortgage
Effective as of the
date this
Agreement is
signed and will
Joint liability
Kilikanoon Estate Pty Ltd 2023.08.31 7530 2023.09.01 7530 - - remain in effect as No Yes
assurance
long as the
guarantor remains
in business with
East West Bank
Total of the guarantee quota approved to Total of the actual guarantee amount for subsidiaries during
00
subsidiaries during the report period (B1) the report period (B2)
3 8Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Total of the guarantee quota approved to Balance of the actual guarantee for subsidiaries by the end
803767530
subsidiaries by the end of the report period (B3) of the report period (B4)
Guarantee situations between subsidiaries
None
Total guarantee amount of the Company（Total of above three major items）
Total of the approved guarantee quota during the Total of the actual guarantee amount during the report
00
report period（A1+B1+C1） period（A2+B2+C2）
Total of the approved guarantee quota by the end Balance of the actual guarantee by the end of the report
1145367530
of the report period（A3+B3+C3） period（A4+B4+C4）
The proportion of actual total guarantee amount (A4+B4+C4) accounting for the Company’s net asset 0.71%
Among :
The amount of guarantee for shareholders actual controllers and their related parties（D） 0
The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is more than 70%
0
directly or indirectly（E）
Total amount of guarantee of the part that exceeds 50% of net assets（F） 0
Total amount of the above-mentioned three items（D+E+F） 0
Explanation for undue guarantees that have happened warranty liability or may take joint payback
No
liabilities during the report period
Explanation for violating due process to provide external guarantee No
Explanation on specific situations of adapting guarantee by complex methods
None
3 9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
3) Financial management entrustment
□Available □Not available
There is no financial management entrustment during the report period.
4) Other important contracts
□Available □Not available
There are no other important contracts during the report period.
13. Other Major issues
□Available □Not available
There are no other major issues need to be explained during the report period.
14. Major issues of Company’s subsidiaries
□Available □Not available
4 0Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
VII. Changes in Shares and Shareholders’ Situation
1. Changes in shares
1) Changes in shares
Unit: share
Amount before this change Change (+ -) Amount after this change
Percentage Distribute bonus Transfer other capital Percentage
Amount Allot new share Others Subtotal Amount
% share to share capital %
I. Shares with trading limited condition 6912759 1% 6912759 1%
1. State-owned holdings
2. State-owned legal person holdings
3. Other domestic holdings 6912759 1% 6912759 1%
Among which: domestic legal person
domestic natural person 6912759 1% 6912759 1%
4. Foreign-owned holdings
Among which: foreign legal person
foreign natural person
II. Shares without trading limited condition 685336800 99% 685336800 99%
1. A shares
45343830065.50%45343830065.50%
2. B shares 231898500 33.50% 231898500 33.50%
3. Oversea listed foreign shares
4. Others
III. Total shares 692249559 100% 692249559 100%
4 1Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Cause of share change
□Available □Not available
Approval of share change
□Available □Not available
Transfer ownership of changed shares
□Available □Not available
Implementation progress of share buy-back
□Available □Not available
On May 21 2024 the Company bought back 470000 B shares of the Company for the first time
through the share buy-back special securities account in a centralized bidding mode accounting
for 0.06789% of the Company’s current total share capital with the highest transaction price of
HKD9.80 per share and the lowest transaction price of HKD9.54 per share. The total transaction
amount was HKD4562470 (excluding transaction fees).As of May 31 2024 the Company has bought back 5794500 B shares of the Company through
share buy-back special securities account in a centralized bidding mode accounting for 0.83705%
of the Company’s current total share capital with the highest transaction price of HKD10.16 per
share and the lowest transaction price of HKD9.54 per share. The total transaction amount was
HKD58191775.31 (excluding transaction fees).As of June 17 2024 the Company has bought back 7066500 B shares of the Company through
share buy-back special securities account in a centralized bidding mode accounting for 1.020802%
of the Company’s current total share capital with the highest transaction price of HKD10.16 per
share and the lowest transaction price of HKD9.26 per share. The total transaction amount was
HKD70112955.78 (excluding transaction fees).As of June 21 2024 the Company has bought back 13880000 B shares of the Company through
share buy-back special securities account in a centralized bidding mode accounting for 2.005057%
of the Company’s current total share capital with the highest transaction price of HKD10.16 per
share and the lowest transaction price of HKD9.26 per share. The total transaction amount was
HKD134451959.88 (excluding transaction fees).As of June 30 2024 the Company has bought back 16860000 B shares of the Company through
share buy-back special securities account in a centralized bidding mode accounting for 2.4355378%
of the Company’s current total share capital with the highest transaction price of HKD10.16 per
share and the lowest transaction price of HKD9.26 per share. The total transaction amount was
HKD162467975.57 (excluding transaction fees).As of July 17 2024 the Company has bought back 19999993 B shares of the Company through
share buy-back special securities account in a centralized bidding mode accounting for 8.6206%
of the Company’s B shares and 2.8891% of the Company’s current total share capital with the
highest transaction price of HKD10.16 per share and the lowest transaction price of HKD9.13 per
share. The total transaction amount was HKD191585678.23 (including transaction fees)
equivalented to CNY175028843.9 which does not exceed CNY200million. All the shares
buy-back had been completed and the number of buy-back shares had basically reached the
maximum number of buy-back shares in the Buy-back Plan.There is no difference between the actual number the proportion and the total amount of funds
used of buy-back shares by the Company and the Buy-back Plan approved by the Company’s
Shareholders’ Meeting. The number of buy-back shares this time has exceeded the lower limit in
the Buy-back Plan which did not exceed the upper limit in the Buy-back Plan and basically
reached the upper limit in the Buy-back Plan; The total amount of funds used to buy back shares
did not reach the total amount of funds intended to be used to buy back shares in the Buy-back
Plan and the share buy-back matters have been completed in accordance with the established plan
by July 17 2024.
4 2Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Implementation progress of reducing holding buy-back share through the way of centralized
bidding
□Available □Not available
The influence of share change on the financial indicators such as basic earnings per share diluted
earnings per share of the latest year and the latest period net asset per share belonging to the
Company’s common shareholders etc.□Available □Not available
Other contents the Company thinks necessary or securities regulatory departments ask to make
public.□Available □Not available
2) Changes in restricted shares
□Available □Not available
2. Securities issuance and listing situation
□Available □Not available
4 3Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
3. The number of shareholders of the Company and the shareholdings
Total number of preferred shareholder recovering voting power by the end of report period (if have)
Total shareholders in the report period 44267 0
(see note 8)
Shareholders holding more than 5% or the top 10 shareholders holding situation
Character of Percentage Shares held until the end Changes during the Number of Number of Pledged or frozen
Name of Shareholders
shareholders (%) of the report period report period restricted shares unrestricted shares Share status Amount
Domestic non-state legal
YANTAI CHANGYU GROUP CO. LTD. 49.91% 345473856 0 0 345473856 Not available 0
person
SHENWAN HONGYUAN SECURITIES Foreign legal person
1.03% 7101352 -1960000 0 7101352 Not available 0
(HONGKONG) LIMITED
#Fengdi JIANG Domestic natural person 0.74% 5120000 -187000 0 5120000 Not available 0
VANGUARD TOTAL INTERNATIONAL STOCK
Foreign legal person 0.50% 3483537 0 0 3483537 Not available 0
INDEX FUND
GUOTAI JUNAN SECURITIES（HONG KONG）
Foreign legal person 0.49% 3358492 -3560346 0 3358492 Not available 0
LIMITED
Social Security Fund 114 Other 0.47% 3253455 2658000 0 3253455 Not available 0
VANGUARD EMERGING MARKETS STOCK
Foreign legal person 0.47% 3223441 -870822 0 3223441 Not available 0
INDEX FUND
HONG KONG SECURITIES CLEARING
Foreign legal person 0.46% 3171686 -2151348 0 3171686 Not available 0
COMPANY LIMITED
Hongwei DENG Domestic natural person 0.40% 2790816 -116500 0 2790816 Not available 0
ICBC Credit Suisse Innovation Power Stock Type
Other 0.39% 2670050 2670050 0 2670050 Not available 0
Securities Investment Fund
Strategic investors or legal result of the placement of new shares to become a
No
top 10 shareholders (see note 3)
Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant action
The explanation for the associated relationship and accordant action
relationship with the other 9 listed shareholders while the relationship among the other shareholders is unknown.Explanation of the above-mentioned shareholders’ entrustment/ fiduciary
No
voting rights and waiver of the voting rights
Among the top ten shareholders Yantai Changyu Pioneer Wine Co. Ltd. has a special securities account for buy-back which is
Special explanation for the existence of a special repurchase account among
not listed among the top 10 shareholders according to regulations. During the reporting period a total of 16860000 B shares
the top 10 shareholders (see note 11)
of the company were bought back accounting for 2.44% of the total share capital at the end of the reporting period.
4 4Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
The top 10 shareholders with shares without trading limited condition
Type of share
Name of Shareholders Number of shares without trading limited condition held until the end of the year
Type of share Amount
YANTAI CHANGYU GROUP CO. LTD. 345473856 A 345473856
SHENWAN HONGYUAN SECURITIES (HONGKONG) LIMITED 7101352 B 7101352
#Fengdi JIANG 5120000 A 5120000
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3483537 B 3483537
GUOTAI JUNAN SECURITIES（HONG KONG） LIMITED 3358492 B 3358492
Social Security Fund 114 3253455 A 3253455
VANGUARD EMERGING MARKETS STOCK INDEX FUND 3223441 B 3223441
HONG KONG SECURITIES CLEARING COMPANY LIMITED 3171686 A 3171686
Hongwei DENG 2790816 B 2790816
ICBC Credit Suisse Innovation Power Stock Type Securities Investment Fund 2670050 A 2670050
The explanation for the associated relationship and accordant action of the top
10 shareholders with unrestricted shares the the associated relationship and Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant action
accordant action between the top 10 shareholders with unrestricted shares and relationship with the other 9 listed shareholders and the relationship among the other shareholders is unknown.the top 10 shareholders
Explanation for the top 10 shareholders who involved in financing activities
The top 10 shareholders do not involve in financing activities and stock trade business.and stock trading business (see note 4)
Shareholders holding more than 5% the top 10 shareholders and the top 10 shareholders with unrestricted tradable shares participate in the lending of
shares involved in the refinancing business
□Available □Not available
The top 10 shareholders and the top 10 shareholders with unrestricted tradable shares have changed from the previous period due to refinancing
lending/restitution reasons
□Available □Not available
Whether or not the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction during the
report period
□Yes □No
4 5Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
There is no agreed repurchase transaction taken by the Company’s top 10 common shareholders and top 10 shareholders with unrestricted shares during the
report period.
4. Changes in shareholdings of directors supervisors and senior executives
□Available □Not available
Number of Increased number Decreased number Number of shares Number of restricted Number of restricted Number of restricted
Shares held at the of shares held in the of shares held in held at the end shares granted at the shares granted in the shares granted at the
Name Position Status
beginning period current period the current period period beginning period current period end period
(shares) (shares) (shares) (shares) (shares) (shares) (shares)
ZHOU
Chairman Incumbent 279600 279600 240000 0 240000
Hongjiang
Director and
SUN Jian General Incumbent 330000 330000 210000 210000
Manager
Director and
LI Jiming Deputy General Incumbent 160000 160000 160000 160000
Manager
LIU
Director Incumbent
Xunzhang
CHEN
Director Outgoing
Dianxin
Aldino
Director Incumbent
Marzorati
Director Deputy
JIANG General
Incumbent 160000 160000 160000 160000
Jianxun Manager and
Board secretary
Stefano
Director Incumbent
Battioni
Enrico
Director Incumbent
Sivieri
4 6Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
CHIANG
Director Incumbent
Yun
DUAN Independent
Incumbent
Changqing Director
LIU Independent
Incumbent
Huirong Director
Independent
LIU Qinglin Incumbent
Director
Independent
YU Renzhu Incumbent
Director
WANG Independent
Incumbent
Zhuquan Director
Chairman of the
LENG Bin Board Incumbent
Supervisory
Liu Zhijun Supervisor Incumbent
YU Jinfeng Supervisor Incumbent
ZHENG
Supervisor Outgoing
Wenping
Deputy General
JIANG Hua Incumbent 170000 170000 160000 160000
Manager
Deputy General
PENG Bin Incumbent 160000 160000 160000 160000
Manager
General
PAN Jianfu Manager Incumbent 100000 100000 100000 100000
Assistant
General
KONG
Manager Incumbent 100000 100000 100000 100000
Qingkun
Assistant
General
LIU Shilu Incumbent 100000 100000 100000 100000
Manager
4 7Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Assistant
General
XIAO
Manager Incumbent 100000 100000 100000 100000
Zhenbo
Assistant
Total -- -- 1659600 0 0 1659600 1490000 0 1490000
5. Changes in controlling shareholders or actual controllers
Changes in the controlling shareholders during the report period
□Available □Not available
There is no any change in the controlling shareholders during the report period.Changes in the actual controllers during the report period
□Available □Not available
There is no any change in the actual controllers during the report period.
4 8Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
VIII. Related Situation of Preferred Shares
□Available □Not available
There are no preferred shares during the report period.IX. Related Situation of Bonds
□Available □Not available
X. Financial Report
1. Audit report
Whether the semiannual report has been audited
□ Yes √ No
2. Financial statement
The unit in the statements of the financial notes is RMB Yuan.
4 9Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. June 30 2024 Unit:
yuan
Item Note June 30 2024 December 31 2023
Current assets:
Monetary fund 7.1 1659684740 2217693647
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable 7.2 440667 1260000
Accounts receivable 7.3 172184919 382132334
Receivables financing 7.4 212135108 408316028
Advance payment 7.5 45718117 61497933
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.6 76437050 71496276
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 7.7 2886202651 2765390587
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.8 72912415 88368542
Total current assets 5125715667 5996155347
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.9 36353528 38285620
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.10 23237000 24482831
Fixed assets 7.11 5687285125 5795082569
Construction in progress 7.12 10097466 3323241
Productive biological assets 7.13 170252547 177461983
Oil-and-gas assets
Right-of-use assets 7.14 112742536 121745910
50Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note June 30 2024 December 31 2023
Intangible assets 7.15 535248176 542625776
Including: Data resource
Development expenditure
Including: Data resource
Goodwill 7.16 107163616 107163616
Long-term prepaid expenses 7.17 308457240 306662107
Deferred income tax assets 7.18 181336582 221518204
Other non-current assets 7.19 1760000
Total non-current assets 7172173816 7340111857
Total assets 12297889483 13336267204
Current liabilities:
Short-term loans 7.21 202057523 364981445
Borrowings from the Central Bank
Borrowing funds
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.22 397974969 473352525
Advances from customers
Contract liabilities 7.23 138471595 175278849
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.24 87669532 185331292
Taxes and dues payable 7.25 145797124 274723431
Other payables 7.26 353518418 555634336
Including: Interest payable
Dividends payable 383085
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.27 81231755 78523993
Other current liabilities 7.28 18001307 44958297
Total current liabilities 1424722223 2152784168
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.29 36651931 66616443
Bonds payable
Including: Preferred stock
Perpetual bonds
51Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note June 30 2024 December 31 2023
Lease liabilities 7.30 68134685 85038335
Long-term accounts payable
Long-term employee remunerations payable
Estimated liabilities
Deferred income 7.31 29292739 32582734
Deferred income tax liabilities 7.18 8329523 8719729
Other non-current liabilities
Total non-current liabilities 142408878 192957241
Total liabilities 1567131101 2345741409
Owner’s equities:
Capital stock 7.32 692249559 692249559
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 7.33 675434203 651086707
Minus: Treasury stock 7.34 250924123 103411919
Other comprehensive income 7.35 -24854346 -14784677
Special reserves
Surplus reserves 7.36 342732000 342732000
General risk preparation
Undistributed profit 7.37 9148896456 9273629318
Total owner’s equities attributable to the parent company 10583533749 10841500988
Minority equity 147224633 149024807
Total owner’s equities 10730758382 10990525795
Total liabilities and owner’s equities 12297889483 13336267204
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
52Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit:
yuan
Item Note June 30 2024 December 31 2023
Current assets:
Monetary fund 664611150 1242484544
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 18.1 1260252 5189894
Receivables financing 30006125 36322019
Advance payment 52587
Other receivables 18.2 507125567 576949997
Including: Interest receivable
Dividends receivable 3447765
Inventories 397600313 323465919
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 22212993 147187
Total current assets 1622816400 2184612147
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 18.3 7671408253 7648498638
Other investments in equity instruments
Other non-current financial assets
Investment real estate 23237000 24482831
Fixed assets 184548217 194601612
Construction in progress 264175 264175
53Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note June 30 2024 December 31 2023
Productive biological assets 97461785 100785279
Oil-and-gas assets
Right-of-use assets 34960098 37025896
Intangible assets 71179279 72552201
Including: Data resource
Development expenditure
Including: Data resource
Goodwill
Long-term prepaid expenses
Deferred income tax assets 1456176 2327585
Other non-current assets 1977430000 1934430000
Total non-current assets 10061944983 10014968217
Total assets 11684761383 12199580364
Current liabilities:
Short-term loans 100000000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 48661601 63686113
Advances from customers
Contract liabilities
Employee remunerations payable 58772991 68654350
Taxes and dues payable 6062369 6439899
Other payables 534216588 608904995
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 5167038 3803910
Other current liabilities
Total current liabilities 652880587 851489267
54Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note June 30 2024 December 31 2023
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 37162717 42380074
Long-term accounts payable
Long-term employee remuneration payable
Estimated liabilities
Deferred income 38372 55718
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 37201089 42435792
Total liabilities 690081676 893925059
Owner’s equities:
Capital stock 692249559 692249559
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 712672729 687544350
Minus: Treasury stock 250924123 103411919
Other comprehensive income
Special reserves
Surplus reserves 342732000 342732000
Undistributed profit 9497949542 9686541315
Total owner’s equities 10994679707 11305655305
Total liabilities and owner’s equities 11684761383 12199580364
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
55Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit:
yuan
Item Note Sum of this period Sum of prior period
1. Total operating income 1522309436 1966738485
Including: Operating income 7.38 1522309436 1966738485
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1243403652 1528483622
Including: Operating costs 7.38 595748730 805459392
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of the withdrawn reserve fund for
insurance contract
Policy bonus payment
Reinsurance expenditures
Taxes and surcharges 7.39 112820607 131447066
Selling expenses 7.40 391916515 453001710
Administrative expenses 7.41 132945615 128695395
Research and development expenses 7.42 6748675 6653626
Financial expenses 7.43 3223510 3226433
Including: Interest expenses 9918886 12325532
Interest income 12390815 9060578
Plus: Other profit 7.44 33630640 28971185
Investment profit (loss is listed with “-”) 7.45 -1932092 15614536
Including: Investment profit for joint-run business
-1932092-932588
and joint venture
Financial assets measured at amortized
cost cease to be recognized as income
Exchange income (loss is listed with “-”)
Net exposure hedge income (loss is listed with “-”)
Income from fair value changes (loss is listed with
“-”)
Credit impairment loss (loss is listed with “-”) 7.46 4083362 -993494
Asset impairment loss (loss is listed with “-”) 7.47 -1024683 -244434
Income from asset disposal (loss is listed with “-”) 7.48 4647 -298401
3. Operating profit (loss is listed with “-”) 313667658 481304255
Plus: Non-operating income 7.49 1677625 1772522
Minus: Non-operating expenses 7.50 611583 2125945
4. Total profits (total loss is listed with “-”) 314733700 480950832
Minus: Income tax expenses 7.51 92758345 130350513
5. Net profit (net loss is listed with “-”) 221975355 350600319
56Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note Sum of this period Sum of prior period
5.1 Classification by operation continuity
5.1.1 Net profit from continuing operation (net loss is listed
221975355350600319
with “-”)
5.1.2 Net profit from terminating operation (net loss is
listed with “-”)
5.2 Classification by ownership
5.2.1 Net profit attributable to owner of the parent
221177382363569436
company
5.2.2 Minority interest income 797973 -12969117
6. Net after-tax amount of other comprehensive income 7.52 -11182076 13707142
Net after-tax amount of other comprehensive income
-1006966912136065
attributable to owner of the parent company
6.1 Other comprehensive income not to be reclassified into
profit and loss later
6.1.1 Changes after remeasuring and resetting the
benefit plans
6.1.2 Other comprehensive income not to be
reclassified into profit and loss under equity
method
6.1.3 Changes in the fair value of other investments
in equity instruments
6.1.4 Changes in the fair value of the enterprise’s
own credit risk
6.1.5 Other
6.2 Other comprehensive income to be reclassified into
-1006966912136065
profit and loss later
6.2.1 Other comprehensive income to be
reclassified into profit and loss under equity
method
6.2.2 Changes in the fair value of other debt
investments
6.2.3 Amount of financial assets reclassified into
other comprehensive income
6.2.4 Provision for credit impairment of other credit
investments
6.2.5 Provision for cash-flow hedge
6.2.6 Difference in translation of Foreign Currency
-1006966912136065
Financial Statement
6.2.7 Other
Net after-tax amount of other comprehensive income
-11124071571077
attributable to minority shareholders
7. Total comprehensive income 210793279 364307461
Attributable to owner of the parent company 211107713 375705501
Attributable to minority shareholders -314434 -11398040
8. Earnings per share:
57Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note Sum of this period Sum of prior period
8.1 Basic earnings per share 0.32 0.53
8.2 Diluted earnings per share 0.32 0.53
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit:
yuan
Item Note Sum of this period Sum of prior period
1. Operating income 18.4 185899536 241967096
Minus: Operating costs 18.4 166106938 200913318
Taxes and surcharges 4511741 9139640
Selling expenses
Administrative expenses 31118671 19481354
Research and development expenses 399923 533807
Financial expenses -8236589 -753987
Including: Interest expenses 2318915 2862882
Interest income 4102498 4368355
Plus: Other profit 608617 774925
Investment profit (loss is listed with “-”) 18.5 164552732 149080018
Including: Investment profit for joint-run business
54934
and joint venture
Financial assets measured at amortized
cost cease to be recognized as income
(loss is listed with “-”)
Net exposure hedge income (loss is listed with “-”)
Income from fair value changes (loss is listed with “-”)
Credit impairment loss (loss is listed with “-”) -1262 -3661
Asset impairment loss (loss is listed with “-”)
Income from asset disposal (loss is listed with “-”) -639633
58Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note Sum of this period Sum of prior period
2. Operating profit (loss is listed with “-”) 157158939 161864613
Plus: Non-operating income 415749 167110
Minus: Non-operating expenses 505099 914209
3. Total profits (total loss is listed with “-”) 157069589 161117514
Minus: Income tax expenses -248882 -405243
4. Net profit (net loss is listed with “-”) 157318471 161522757
4.1 Net profit from continuing operation (net loss is listed with
157318471161522757
“-”)
4.2 Net profit from terminating operation (net loss is listed
with “-”)
5. Net after-tax amount of other comprehensive income
5.1 Other comprehensive income not to be reclassified into
profit and loss later
5.1.1 Changes after re-measuring and resetting the benefit
plans
5.1.2 Other comprehensive income not to be reclassified
into profit and loss under equity method
5.1.3 Changes in the fair value of other investments in
equity instruments
5.1.4 Changes in the fair value of the enterprise’s own
credit risk
5.1.5 Other
5.2 Other comprehensive income to be reclassified into profit
and loss later
5.2.1 Other comprehensive income to be reclassified into
profit and loss under equity method
5.2.2 Changes in the fair value of other debt investments
5.2.3 Amount of financial assets reclassified into other
comprehensive income
5.2.4 Provision for credit impairment of other credit
investments
5.2.5 Provision for cash-flow hedge
5.2.6 Difference in translation of Foreign Currency
Financial Statement
5.2.7 Other
6. Total comprehensive income 157318471 161522757
7. Earnings per share:
7.1 Basic earnings per share 0.23 0.23
59Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note Sum of this period Sum of prior period
7.2 Diluted earnings per share 0.23 0.23
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Item Note Sum of this period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 1866371505 2065105263
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Cash received from receiving insurance premium of original
insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment funds
Cash received from collecting interest handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchased business funds
Net cash received for buying and selling securities
Tax refund received 16377257 29311454
Other cash received related to operating activities 7.53 48893252 47251102
Subtotal of cash flows of operating activities 1931642014 2141667819
Cash paid for goods and services 758417685 622088864
Net increase in customer loans and advances
Net increase in deposits in central bank and interbank deposits
Cash paid to original insurance contract payments
Net increase in lending funds
Cash paid to interest handling fees and commissions
Cash paid to policy bonus
Cash paid to and on behalf of employees 264499866 241778846
Cash paid for taxes and expenses 408101346 457071706
Other cash paid related to operating activities 7.53 296742753 292808617
Sub-total of cash outflows of operating activities 1727761650 1613748033
Net cash flow from operating activities 203880364 527919786
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 413000000 6000000
60Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Note Sum of this period Sum of prior period
Cash received from obtaining investment income
Cash received from obtaining interest income 2589064 167919
Cash received from disposal of fixed assets intangible assets
808431431000
and other long-term assets
Net cash received from disposal of branch and other business
7238585
unit
Other cash received related to investing activities 657049
Subtotal of cash flows of investment activities 415669907 15494553
Cash paid to acquire fixed assets intangible assets and other
6789311860515887
long-term assets
Cash for investment
Cash paid for purchasing fixed deposits 246000000 206000000
Net increase in hypothecated loan
Net cash paid for acquiring branch and other business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 313893118 266515887
Net cash flow from investing activities 101776789 -251021334
3. Cash flow from financing activities
Cash received from acquiring investment 13900832
Including: Cash received from acquiring minority shareholders
investment by branch
Cash received from acquiring loans 307063337 295974371
Other cash received related to financing activities
Subtotal cash flows of financing activities 307063337 309875203
Cash paid for paying debts 484652320 419615315
Cash paid for distributing dividend and profit or paying
359372568319861482
interest
Including: Dividend and profit paid to minority shareholders
70317
by branch
Other cash paid related to financing activities 167730790 38007700
Subtotal of cash outflows of financing activities 1011755678 777484497
Net cash flow from financing activities -704692341 -467609294
4. Influences of exchange rate fluctuation on cash and cash
-11313151038021
equivalents
5. Net Increase in cash and cash equivalents -400166503 -189672821
Plus: Balance at the beginning of the period of cash and cash
19631557521612753600
equivalents
6. Balance at the end of the period of cash and cash equivalents 1562989249 1423080779
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
61Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2.6 Cash flow statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Item Sum of this period Sum of prior period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of
251492494245770806
services
Tax refund received
Other cash received related to operating activities 8000504 10820471
Subtotal of cash flows of operating activities 259492998 256591277
Cash paid for goods and services 137448769 204180816
Cash paid to and on behalf of employees 34244388 22218740
Cash paid for taxes and expenses 23228320 43953062
Other cash paid related to operating activities 28704858 76577506
Sub-total of cash outflows of operating activities 223626335 346930124
Net cash flow from operating activities 35866663 -90338847
2. Cash flow from investing activities:
Cash received from disinvestment 27690000
Cash received from withdrawal of fixed deposits 413000000
Cash received from obtaining investment income 161104967 325390390
Cash received from obtaining interest income 2589064 167919
Net cash received from disposal of fixed assets
intangible assets and other long-term assets
Net cash received from disposal of branch and other
business unit
Other cash received related to investing activities 20000000
Subtotal of cash flows of investment activities 596694031 353248309
Cash paid to acquiring fixed assets intangible assets
31930663845079
and other long-term assets
Cash for investment 1883538 20161100
Cash paid for purchasing fixed deposits 246000000 206000000
Net cash paid for acquiring branch and other
business unit
62Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Sum of this period Sum of prior period
Other cash paid related to investment activities 198200000 44230000
Subtotal of cash outflows of investment activities 449276604 274236179
Net cash flow from investing activities 147417427 79012130
3. Cash flow from financing activities:
Cash received from acquiring investment 13900832
Cash received from acquiring loans 100000000
Other cash received related to financing activities
Subtotal cash flows of financing activities 113900832
Cash paid for debts 100000000 100000000
Cash paid to distribute dividend profit or pay
347324780310002967
interest
Other cash paid related to financing activities 155356609 4567148
Subtotal of cash outflows of financing activities 602681389 414570115
Net cash flow from financing activities -602681389 -300669283
4. Influences of exchange rate fluctuation on cash and
cash equivalents
5. Net Increase in cash and cash equivalents -419397299 -311996000
Plus: Balance at the beginning of the period of cash
988284544843369997
and cash equivalents
6. Balance at the end of the period of cash and cash
568887245531373997
equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo
Cuimei
63Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2.7 Consolidated owner’s equities changing list
Unit: yuan
This period
Owner’s equities of the parent company
Item Other equity instruments Minus: Other Minority Total owner’s
Capital Capital Special Surplus General risk Undistributed
Treasury comprehensive Others Subtotal equity Perpetual equities
stock Preferred Others reserves reserves reserves preparation profits
stock stock income bonds
1. Balance at the end of last year 692249559 651086707 103411919 -14784677 342732000 9273629318 10841500988 149024807 10990525795
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of
692249559651086707103411919-1478467734273200092736293181084150098814902480710990525795
this year
3. Increased or decreased amount in this
24347496147512204-10069669-124732862-257967239-1800174-259767413
period (reducing amount is listed with “ -”)
3.1 Total comprehensive income -10069669 221177382 211107713 -314434 210793279
3.2 Owner’s invested and
24347496147512204-123164708-1102655-124267363
reduced capital
3.2.1 Owner’s invested common stock 150932125 -150932126 -150932126
3.2.2 Other equity instrument
holders’ invested capital
3.2.3 Amount of shares paid and
25146195-34199212856611728566117
reckoned in owner’s equities
3.2.4 Others -798699 -798699 -1102655 -1901354
3.3 Profit distribution -345910244 -345910244 -383085 -346293329
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk
preparation
3.3.3 Distribution to owners (or
-345910244-345910244-383085-346293329
shareholders)
3.3.4 Others
3.4 Internal transfer of owner’s equities
3.4.1 Capital reserves transferred
and increased capital (or cap ital
stock)
3.4.2 Surp lus reserves transferred
and increased capital (or cap ital
64Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried
over from the benefit plan variation
3.4.5 Retained earnings carried over
from other comprehensive income
3.4.6 Others
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Others
4. Balance at the end of this period 692249559 675434203 250924123 -24854346 342732000 9148896456 10583533749 147224633 10730758382
Unit: yuan
Last period
Owner’s equities of the parent company
Item Other equity instruments Minus: Other General Total owner’s
Capital Capital Special Surplus Undistributed Minority equity equities
stock Preferred Perpetual
Treasury comprehensive risk Others Subtotal
Others reserves reserves reserves profits
stock bonds stock income preparation
1. Balance at the end of last year 685464000 524968760 -23760238 342732000 9049649211 10579053733 246526561 10825580294
Plus: Accounting policies
changing
Previous error correction
Other
2. Balance at the beginning of
685464000524968760-2376023834273200090496492111057905373324652656110825580294
this year
3. Increased or decreased amount in this
67855591261179471034119198975561223980107262447255-97501754164945501
period (reducing amount is listed with “-”)
3.1 Total comprehensive income 8975561 532438907 541414468 -5862264 535552204
3.2 Owner’s invested and
678555912611794710341191929491587-90101174-60609587
reduced capital
3.2.1 Owner’s invested common stock
3.2.2 Other equity instrument
holders’ invested capital
3.2.3 Amount of shares paid and
67855591273621151034119193073575530735755
reckoned in owner’s equities
3.2.4 Others -1244168 -1244168 -90101174 -91345342
65Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
3.3 Profit distribution -308458800 -308458800 -1538316 -309997116
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk
preparation
3.3.3 Distribution to owners (or
-308458800-308458800-1538316-309997116
shareholders)
3.3.4 Others
3.4 Internal transfer of owner’s equities
3.4.1 Capital reserves transferred
and increased capital (or capital
stock)
3.4.2 Surplus reserves transferred
and increased capital (or capital
stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over
from the benefit plan amount
3.4.5 Retained earnings carried over
from other comprehensive income
3.4.6 Others
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 692249559 651086707 103411919 -14784677 342732000 9273629318 10841500988 149024807 10990525795
66Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
2.8 Owner’s equities changing list of the parent company
Unit: yuan
This period
Other equity instruments
Item Minus: Other Capital Special Surplus Undistributed Total owner’s
Capital stock Preferred Perpetual Treasury comprehensive Others
Others reserves reserves reserves profits equities
stock bonds stock income
1. Balance at the end of last year 692249559 687544350 103411919 342732000 9686541315 11305655305
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 692249559 687544350 103411919 342732000 9686541315 11305655305
3. Increased or decreased amount in this period
25128379147512204-188591773-310975598
(reducing amount is listed with “-”)
3.1 Total comprehensive income 157318471 157318471
3.2 Owner’s invested and reduced capital 25128379 147512204 -122383825
3.2.1 Owner’s invested common stock 150932125 -150932126
3.2.2 Other equity instrument holder’s invested capital
3.2.3 Amount of shares paid and reckoned in
25146195-341992128566117
owner’s equities
3.2.4 Others -17816 -17816
3.3 Profit distribution -345910244 -345910244
3.3.1 Accrued surplus reserves
3.3.2 Distribution to owners (or shareholders) -345910244 -345910244
3.3.3 Others
3.4 Internal transfer of owner’s equities
3.4.1 Capital reserves transferred and increased
capital (or capital stock)
3.4.2 Surplus reserves transferred and increased
capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over from the
benefit plan amount
67Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
3.4.5 Retained earnings carried over from other
comprehensive income
3.4.6 Others
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Others
4. Balance at the end of this period 692249559 712672729 250924123 342732000 9497949542 10994679707
Unit: yuan
Last period
Other equity instruments Minus: Other
Item Capital Special Surplus Undistributed Total owner’s
Capital stock Preferred Perpetual Treasury comprehensive Others
Others reserves reserves reserves profits equities
stock bonds stock income
1. Balance at the end of last year 685464000 560182235 342732000 9582860014 11171238249
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 685464000 560182235 342732000 9582860014 11171238249
3. Increased or decreased amount in this period
6785559127362115103411919103681301134417056
(reducing amount is listed with “-”)
3.1 Total comprehensive income 412140101 412140101
3.2 Owner’s invested and reduced capital 6785559 127362115 103411919 30735755
3.2.1 Owner’s invested common stock
3.2.2 Other equity instrument holder’s invested capital
3.2.3 Amount of shares paid and reckoned in
678555912736211510341191930735755
owner’s equities
3.2.4 Others
3.3 Profit distribution -308458800 -308458800
3.3.1 Accrued surplus reserves
68Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
3.3.2 Distribution to owners (or shareholders) -308458800 -308458800
3.3.3 Others
3.4 Internal transfer of owner’s equities
3.4.1 Capital reserves transferred and increased
capital (or capital stock)
3.4.2 Surplus reserves transferred and increased
capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over from the
benefit plan amount
3.4.5 Retained earnings carried over from other
comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Others
4. Balance at the end of this period 692249559 687544350 103411919 342732000 9686541315 11305655305
69Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
3. Company profile
Yantai Changyu Pioneer Wine Co. Ltd. (the “Company” or the “Joint-stock Company”) was
incorporated as a joint-stock limited company in accordance with the Company Law of the
People’s Republic of China (the “PRC”) in the merger and reorganization carried out by
Yantai Changyu Group Co. Ltd. (“Changyu Group”) with its assets and liabilities in relation
to wine business. The Company and its subsidiary companies (hereinafter collectively
referred to as the “Group”) are engaged in the production and sale of wine brandy and
sparkling wine planting and purchase of grapes development of tourism resources etc. The
registered address of the Company is Yantai City Shandong Province and the office address
of the headquarters is 56 Dama Road Zhifu District Yantai City Shandong Province.As at June 30 2024 the Company issued 692249559 shares accumulatively. Refer to Note
7.32 for details.
The parent company of the Group is Changyu Group incorporated in China which was
ultimately and actually controlled by four parties including Yantai Guofeng Investment
Holding Group Co. Ltd. ILLVA Saronno Holding Spa International Finance Corporation
and Yantai Yuhua Investment & Development Co. Ltd.The financial statement and the consolidated financial statement o f the Company were
approved by the Board of Directors in August 20 2024.The details of scope of the consolidated financial statement in this period can be seen in Note
10 “Equity in other entities”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Company prepares the financial statement on the basis of continuous operation.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30
2024 and no issues or situations causing major doubts to this ability are found. Therefore
this financial statement is prepared on the basis of the continuous operation assumption.
5. Main accounting policies and accounting estimates
5.1 Statement on compliance with ASBE
This financial statement fulfills the requirement of Accounting Standards for Business
Enterprises (ASBE) issued by the Ministry of Finance and gives a true and integrated view of
the consolidated financial status and the financial status as at June 30 2024 as well as the
consolidated operating result the operating result the consolidated cash flow and the cash
flow of the Company from January to June 2024.
70Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
In addition the financial statement of the Company also complies with the related disclosure
requirements for statement and its notes stipulated by Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on
Financial Reports (2014 Revision) by the China Securities Regulatory Commission
(hereinafter referred to as the “CSRC”).
5.2 Accounting period
The accounting year is from January 1 to December 31 in Gregorian calendar.
5.3 Operating cycle
The operating cycle refers to the period from the enterprise purchases the assets used for
processing to the cash or cash equivalent is realized. The operating cycle of the Company is
12 months.
5.4 Recording currency
Since Renminbi (RMB) is the currency of the main economic environment in which the
Company and the domestic subsidiary companies thereof are situated the Company and the
subsidiary companies thereof adopt RMB as the recording currency. The overseas subsidiary
companies thereof determine EUR CLP and AUD as the recording currency according to the
main economic environment in which they are situated. The currency in this financial
statement prepared by the Group is RMB.
5.5 Determination method and selection criteria for significant standards
Item Significant standards
Single of other payables / accounts payable with
Other significant payables / accounts
an aging of over 1 year exceeding 0.5% of the
payable with an aging of over 1 year
Group’s total liabilities
Single of construction in progress with the
Significant construction in progress carrying amount exceeding 0.5% of the Group’s
noncurrent assets
Non-wholly-owned subsidiary with the book value
Significant non-wholly-owned subsidiary of net assets attributable to minority shareholders
exceeding 0.5% of the Group’s net assets
Significant cash flows from investing Single of cash flows with the amount exceeding
activities 0.5% of the Group’s total assets
5.6 Accounting treatment method for business combination under common control and
non-common control
5.6.1 Business combination under common control
A business combination under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or same multiple parties
before and after the combination and that control is not transitory. The assets and liabilities
obtained by the combining party in the business combination shall be measured on the basis
71Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
of the carrying amount in the ultimate controlling party’s consolidated financial statement as
at the combination date. Where there is a difference between the carrying amount of the net
assets acquired and the carrying amount of the combination consideration paid (or the total
par value of the shares issued) the stock premium in capital surplus shall be adjusted. If the
stock premium in capital surplus is not sufficient to offset the retained earnings shall be
adjusted. The direct related expenses incurred for the business combination shall be included
in the current profit and loss when incurred. The combination date is the date on which the
combining party actually obtains control of the combined party.
5.6.2 Business combination under non-common control
A business combination under non-common control is a business combination in which all of
the combining parties are not ultimately controlled by the same party or same multiple parties
before and after the combination. The sum of fair values of the assets paid by the Group as
the acquirer (including the acquiree’s equity the Group held before the acquisition date)
liabilities incurred or assumed and the equity securities issued on the acquisition date in
exchange for the control over the acquiree shall deduct the fair value of the acquiree’s
identifiable net assets acquired in the combination on the acquisition date. If the difference is
positive it shall be recognized as goodwill; and if it is negative it shall be included in the
current profit and loss. The direct expenses incurred for the business combi nation by the
Group shall be included in the current profit and loss. All the identifiable assets liabilities
and contingent liabilities which are obtained from the acquiree and meet the recognition
conditions shall be confirmed by the Group on the acquisition date according to the fair value
thereof. The acquisition date is the date on which the acquirer actually obtains control of the
acquiree.For a business combination involving entities not under common control and achieved in
stages the Group re-measures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognizes any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. Other comprehensive income and other changes in owner’s equities that can be
reclassified into profit or loss under the equity method of accounting for the equity interest of
the acquiree held before acquisition date shall be transferred to current investment income on
the purchase date; and if equity interests of the acquiree held before acquisition date are
equity instrument investments measured at fair value with changes recognized in other
comprehensive income other comprehensive income recognized before acquisition date shall
be transferred to retained earnings on acquisition date.
5.7 Determination standard of control and compiling methods of consolidated financial
statement
5.7.1 General principles
The consolidation scope of the consolidated financial statements is determined based on
control including the Company and its controlled subsidiaries. Control refers to the Group’s
power over the investee enjoying variable returns through participation in related activities
of the investee and having the ability to use its power over the investee to influence its return
amount. When determining whether the Group has power over the investee the Group only
considers substantive rights related to the investee (including substantive rights enjoyed by
72Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
the Group itself and other parties). The financial condition operating performance and cash
flows of the subsidiaries shall be included in the consolidated financial statements from the
date of control to the date of control termination.The equity profit and loss and total comprehensive income attributable to minority
shareholders of the subsidiaries shall be separately presented in the shareholders’ equity
section of the consolidated balance sheet and the net profit and total comprehensive income
section of the consolidated profit statement.If the current losses shared by minority shareholders of the subsidiaries exceed their share of
the subsidiaries’ initial owner’s equity the balance shall still be offset against the minority
equity.When the accounting period or accounting policies of a subsidiary are different from those of
the Company the Company has made necessary adjustments to the financial statements of
the subsidiary based on the Company’s own accounting period or accounting policies. All
intra-group transactions and balances during the combination including unrealized
intra-group transactions gains and losses have been offset. If there is evidence that unrealized
losses incurred in intra-group transactions are related to impairment losses of assets the full
amount of such losses shall be recognized.
5.7.2 Subsidiaries acquired through a business combination
Where a subsidiary is acquired through a business combination involving entities under
common control when preparing the consolidated financial statements for current period
based on the carrying amounts of the assets and liabilities of the combined subsidiary in the
financial statements of the ultimate controlling party the combined subsidiary shall be
deemed to be included in the consolidation scope of the Company when the ultimate
controlling party of the Company begins to exercise control over it and the initial balance
and the comparative figures of the consolidated financial statements shall be correspondingly
adjusted.Where a subsidiary is acquired through a business combination involving entities not under
common control when preparing the consolidated financial statements for current period
based on the fair value of identifiable assets and liabilities of the acquired subsidiary
determined on the acquisition date the acquired subsidiary shall be included in the
consolidation scope of the Company from the acquisition date.
5.7.3 Disposal of subsidiaries
When the Group loses control over a subsidiary any resulting disposal gains or losses are
recognized as investment income for the current period. The remaining equity investment is
re-measured at its fair value at the date when control is lost any resulting gains or losses are
also recognized as investment income for the current period.When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
73Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;
- one arrangement considered on its own is not economically justified but it is
economically justified when considered together with other arrangements.If each of the multiple transactions does not form part of a bundled transaction the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in
subsidiaries where control is retained.If each of the multiple transactions forms part of a bundled transaction each transaction shall
be treated as a transaction for disposing of the existing subsidiary and losing control. The
difference between the disposal price and the net carrying value of the subsidiary that is
continuously calculated from the acquisition date corresponding to the disposal investment
before losing control shall be included in other comprehensive income in the consolidated
financial statements and be transferred when losing control to profit or loss of the period
losing control.
5.7.4 Changes in minority equity
The difference between the cost of long-term equity investment acquired by the Company
through the purchase of minority equity and the net asset share of the subsidiary calculated
based on the newly increased shareholding ratio as well as the difference between the
disposal price obtained from partial disposal of equity investment in the subsidiary without
losing control and the net asset share of the subsidiary corresponding to the disposal of
long-term equity investment shall be adjusted to the capital reserve (share premium) in the
consolidated balance sheet. And if the capital reserve (share premium) is insufficient to
offset the retained earnings shall be adjusted.
5.8 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be used for payment at
any time and short-term highly liquid investments which are readily convertible into known
amount of cash with an insignificant risk of changes in value.
5.9 Foreign currency transaction and foreign currency statement translation
When the Group receives capital in foreign currencies from investors the capital is translated
to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency
transactions are on initial recognition translated to Renminbi at the spot exchange rates.Monetary items denominated in foreign currencies are translated to Renminbi at the spot
74Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognized in current profit or loss unless they arise from the re-translation of the principal
and interest of specific borrowings for the acquisition and construction of qualifying assets.Non-monetary items that are measured at historical cost in foreign currencies are translated to
Renminbi using the exchange rate at the transaction date.In translating the financial statements of a foreign operation assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items excluding undistributed profit and the translation differences in other
comprehensive income are translated to Renminbi at the spot exchange rates at the
transaction date. Income and expenses in the income statement are translated to Renminbi at
the spot exchange rates at the transaction date. The resulting translation differences generated
by the above conversion are recognized in other comprehensive income. The translation
differences accumulated in other comprehensive income with respect to a foreign operation
are transferred to profit or loss in the period when the foreign operation is disposed.
5.10 Financial instruments
Financial instruments include cash at bank and on hand investments in debt and equity
securities other than those classified as long-term equity investments receivables payables
loans and borrowings and share capital.
5.10.1 Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognized in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.A financial asset (unless it is a trade receivable without a significant financing component)
and financial liability is measured initially at fair value. For financial assets and financial
liabilities at fair value through profit or loss any related directly attributable transaction costs
are charged to profit or loss; for other categories of financial assets and financial liabilities
any related attributable transaction costs are included in their initial costs. Accounts
receivable containing no significant financing component or not considering financing
component of contracts that do not exceed one year are measured initially at transaction
prices determined by the accounting policies set out in Note 5.22.
5.10.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets of this Group
The classification of financial assets is generally based on the business model in which a
financial asset is managed and its contractual cash flow characteristics. On initial recognition
a financial asset is classified as measured at amor tized 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.
75Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
A financial asset is measured at amortized cost if it meets both of the following conditions
and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.A debt investment is measured at FVOCI if it meets both of the following conditions and is
not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.On initial recognition of an equity investment that is not held for trading the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an investment-by-investment basis. The
instrument meets the definition of equity from the perspective of the issuer.All financial assets not classified as measured at amortized cost or FVOCI as described above
are measured at FVTPL. On initial recognition the Group may irrevocably designate a
financial asset that otherwise meets the requirements to be measured at amortized cost or at
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 interes t
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 recognitio n.‘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
76Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
These financial assets are subsequently measured at fair value. Net gains and losses
including any interest or dividend income are recognized in profit or loss unless the financial
assets are part of a hedging relationship.- Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method.A gain or loss on a financial asset that is measured at amortized cost and is not part of a
hedging relationship shall be recognized in profit or loss when the financial asset is
derecognized and reclassified through the amortization process or in order to recognize
impairment gains or losses.- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the
effective interest method impairment and foreign exchange gains and losses are recognized
in profit or loss. Other net gains and losses are recognized in other comprehensive income.On derecognition gains and losses accumulated in other comprehensive income are
reclassified to profit or loss.- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income in
profit or loss. Other net gains and losses are recognized in other comprehensive income. On
derecognition gains and losses accumulated in other comprehensive income are reclassified
to retained earnings.
5.10.3 Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortized cost by the Group.- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses including any interest expense are recognized in profit or loss unless the financial
liabilities are part of a hedging relationship.- Financial liabilities at amortized cost
These financial liabilities are subsequently measured at amortized cost using the effective
interest method.
77Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
5.10.4 Offsetting
Financial assets and financial liabilities are generally presented separately in the balance
sheet and are not offset. However a financial asset and a financial liability are offset and the
net amount is presented in the balance sheet when both of the following conditions are
satisfied:
- The Group currently has a legally enforceable right to set off the recognized amounts；
- The Group intends either to settle on a net basis or to realize the financial asset and settle
the financial liability simultaneously.
5.10.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognized when one of the following conditions is met:
- the contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or
- the financial asset has been transferred although the Group neither transfers nor
retains substantially all of the risks and rewards of ownership of the financial asset it does
not retain control over the transferred asset.Where a transfer of a financial asset in its entirety meets the criteria for derecognition the
difference between the two amounts below is recognized in current profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and when the transferred
financial asset is a debt investment at FVOCI any cumulative gain or loss that has been
recognized directly in other comprehensive income for the part derecognized.The Group derecognizes a financial liability (or part of it) only when its contractual
obligation (or part of it) is extinguished.
5.10.6 Impairment
The Group recognizes loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortized cost;
- financial investments at fair value through other comprehensive income
Financial assets measured at fair value including debt investments or equity securities at
FVPL equity securities designated at FVOCI and derivative financial assets are not subject
to the ECL assessment.Measurement of ECLs
78Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity
in accordance with the contract and the cash flows that the Group expects to receive).The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.ECLs within the next 12 months refers to the ECLs that may occur due to a financial
instrument default event within 12 months after the balance sheet date (if the expected
duration of the financial instrument is less than 12 months it is within the expected duration)
and is a part of the ECLs for the entire duration.For bills receivable accounts receivable accounts receivable financing generated from daily
business activities such as selling goods and providing services loss allowance always
measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated
using a provision matrix based on the Group’s historical credit loss experience adjusted for
factors that are specific to the debtors and an assessment of both the current and forecast
general economic conditions at the balance sheet date.For assets other than bills receivable accounts receivable accounts receivable financing that
meet one of the following conditions loss allowance are measured at an amount equal to
12-month ECLs. For all other financial instruments the Group recognizes a loss allowance
equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
or
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.Bad debt provision for accounts receivable
(a) Combination categories and determination criteria for bad debt provision based on credit
risk characteristics
According to the different credit risk characteristics of the acceptor the Group
Bills receivable divides bills receivable into two combinations: bank acceptance bills and
commercial acceptance bills.Based on the historical experience of this Group there is no significant
difference in the occurrence of losses among different segmented customer
Accounts
groups. Therefore this Group considers all accounts receivable as a combination
receivable
and does not further differentiate between different customer groups when
calculating the bad debt provision for accounts receivable.The accounts receivable financing of this Group is for accounts receivable bank
Accounts
acceptance bills with dual holding purposes. Due to the fact that the accepting
receivable
banks are all banks with high credit ratings this Group considers all accounts
financing
receivable financing as a combination.
79Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
The other receivables of this Group mainly include deposits receivable and
security deposits. Based on the nature of accounts receivable and the credit risk
Other
characteristics of different counterparties the Group divides other accounts
receivables
receivable into two combinations namely: combination of deposits receivable
and security deposits and combination of other accounts receivable.(b) Determination criteria for single provision of bad debt reserves based on individual
provision
For bills receivable accounts receivable accounts receivable financing and other accounts
receivable the Group usually measures its loss provision based on a combination of credit
risk characteristics. If the credit risk characteristics of a counterparty are significantly
different from those of other counterparties in the portfolio or if there is a significant change
in the credit risk characteristics of that counterparty a separate provision for loss shall be
made for accounts receivable from that counterparty. For example when a counterparty
experiences serious financial difficulties and the ECL rate of accounts receivable from that
counterparty is significantly higher than the ECL rate of its aging range a separate provision
for loss shall be made for it.Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a
low risk of default the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and adverse changes in economic and business conditions in the
longer term may but will not necessarily reduce the ability of the borrower to fulfil its
contractual cash flow obligations.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 or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument’s external or
internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological market economic or legal environment
that have a significant adverse effect on the debtor’s ability to meet its obligation to the
Group.Depending on the nature of the financial instruments the assessment of a significant increase
in credit risk is performed on either an individual basis or a collective basis. When the
80Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
assessment is performed on a collective basis the financial instruments are grouped based on
shared credit risk characteristics such as past due status and credit risk ratings.The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than 30 days past due.Credit-impaired financial assets
At each balance sheet date the Group assesses whether financial assets carried at amortized
cost and debt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’
when one or more events that have a detrimental impact on the estimated future cash flows of
the financial asset have occurred. Evidence that a financial asset is credit-impaired includes
the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty the
Group having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganization; or
- the disappearance of an active market for that financial asset because of financial
difficulties.Presentation of allowance for ECL
ECLs are re-measured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is recognized
as an impairment gain or loss in profit or loss. The Group recognizes an impairment gain or
loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account except for debt investments that are measured at FVOCI
for which the loss allowance is recognized in other comprehensive income.Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of
amounts due.Subsequent recoveries of an asset that was previously written off are recognized as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
5.10.7 Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is
81Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
recognized in shareholders’ equity. 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.
5.11 Inventories
5.11.1 Classification and cost
Inventories include raw materials work in progress and reusable materials. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase costs of
conversion and other expenditure incurred in bringing the inventories to their present location
and condition. In addition to the purchase cost of raw materials work in progress and
finished goods include direct labor costs and an appropriate allocation of production
overheads.Agricultural products harvested are reported in accordance with the Accounting Standard for
Business Enterprises No. 1 - Inventories.
5.11.2 Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.Consumables including low-value consumables and packaging materials are amortized when
they are used. The amortization charge is included in the cost of the related assets or
recognized in profit or loss for the current period.
5.11.3 Basis for determining the net realizable value and method for provision for obsolete
inventories
At the balance sheet date inventories are carried at the lower of cost and net realizable value.Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and relevant
taxes. The net realizable value of materials held for use in the production is measured based
on the net realizable value of the finished goods in which they will be incorporated. The net
realizable value of the inventory held to satisfy sales or service contracts is measured based
on the contract price to the extent of the quantities specified in sales contracts and the excess
portion of inventories is measured based on general selling prices.Any excess of the cost over the net realizable value of each item of inventories is recognized
as a provision for impairment and is recognized in profit or loss.
82Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
5.11.4 Inventory count system
The Group maintains a perpetual inventory system.
5.12 Long-term equity investments
5.12.1 Investment cost determination of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combination
involving entities under common control is the Company’s share of the carrying a mount 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 retained earnings. 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 retained earnings.- For a long-term equity investment obtained through a business combination not involving
enterprises under common control the initial cost comprises the aggregate of the fair value of
assets transferred liabilities incurred or assumed and equity securities issued by the
Company in exchange for control of the acquiree. For a long-term equity investment
obtained through a business combination not involving entities under common control and
achieved through multiple transactions in stages which do not form a bundled transaction the
initial cost comprises the carrying amount of the previously-held equity investment in the
acquiree immediately before the acquisition date and the additional investment cost at the
acquisition date.(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is
initially recognized at the amount of cash paid if the Group acquires the investment by cash
or at the fair value of the equity securities issued if an investment is acquired by issuing
equity securities.
5.12.2 Subsequent measurement and profit and loss recognition methods of long-term equity
investment
(a) Investments in subsidiaries
In the Company’s separate financial statements long-term equity investments in subsidiaries
are accounted for using the cost method unless the investment is classified as held for sale.Except for cash dividends or profit distributions declared but not yet distributed that have
83Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
been included in the price or consideration paid in obtaining the investments the Company
recognizes its share of the cash dividends or profit distributions declared by the investee as
investment income for the current period.The investments in subsidiaries are stated in the balance sheet at cost less impairment losses.For the impairment testing method and impairment provision method of the investments in
subsidiaries refer to Note 5.21.In the Group’s consolidated financial statements subsidiaries are accounted for in accordance
with the policies described in Note 5.6.(b) Investments in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control and
rights to the net assets of the arrangement.An associate is an enterprise the Group can exert significant influence on.A long-term equity investment in a joint venture and associate is accounted for using the
equity method for subsequent measurement unless the investment is classified as held for
sale.The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest in the
fair value of the investee’s identifiable net assets at the date of acquisition the investment i s
initially recognized at cost. Where the initial investment cost is less than the Group’s interest
in the fair value of the investee’s identifiable net assets at the date of acquisition the
investment is initially recognized at the investor’s share of the fair value of the investee’s
identifiable net assets and the difference is recognized in current profit or loss.- After the acquisition of the investment in joint ventures and associates the Group
recognizes its share of the investee’s profit or loss and other comprehensive income as
investment income or losses and other comprehensive income respectively and adjusts the
carrying amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions the carrying amount of the investment is reduced by the
amount attributable to the Group. Changes in the Group’s share of the investee’s owners’
equity other than those arising from the investee’s net profit or loss other comprehensive
income or profit distribution (referred to as “other changes in owners’ equity”) is recognized
directly in the Group’s equity and the carrying amount of the investment is adjusted
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accordingly.- In calculating its share of the investee’s net profits or losses other comprehensive income
and other changes in owners’ equity the Group recognizes investment income and other
comprehensive income after making appropriate adjustments to align the accounting policies
or accounting periods with those of the Group based on the fair value of the investee’s
identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from
transactions between the Group and its associates or joint ventures are eliminated to the
extent of the Group’s interest in the associates or joint ventures. Unrealized losses resulting
from transactions between the Group and its associates or joint ventures are el iminated in the
same way as unrealized gains but only to the extent that there is no impairment.- The Group discontinues recognizing its share of further losses of the investee after the
carrying amount of the long-term equity investment and any long-term interest that in
substance forms part of the Group’s net investment in the associate is reduced to zero except
to the extent that the Group has an obligation to assume additional losses. If the joint venture
or the associate subsequently reports net profits the Group resumes recognizing its share of
those profits only after its share of the profits equals the share of losses not recognized.For the impairment testing method and impairment provision method of the investments in
joint ventures and associates of this Group refer to Note 5.21.
5.12.3 Criteria for determining the existence of joint control and significant impact over an
investee
Joint control is the contractually agreed sharing of control of an arrangement which exists
only when decisions about the relevant activities (activities with significant impact on the
returns of the arrangement) require the unanimous consent of the parties sharing control.The following factors are usually considered when assessing whether the Group can exercise
joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related
activities unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the
unanimous consent of all participant parties that sharing of control.Significant influence is the power to participate in the financial and operating policy
decisions of an investee but does not have control or joint control over those policies.
5.13 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
85Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
stated in the balance sheet at cost less accumulated depreciation amortization and
impairment losses and adopts a depreciation or amortization policy for the investment
property which is consistent with that for buildings or land use rights unless the investment
property is classified as held for sale. For the impairment testing method and impairment
provision method refer to Note 5.21.Residual value rate Annual depreciation
Category Useful life (years)
(%) rate (%)
Plant and buildings 20-40 years 0-5% 2.4%-5.0%
5.14 Fixed assets
5.14.1 Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods
supply of services for rental or for administrative purposes with useful lives over one
accounting year.The initial cost of a purchased fixed asset comprises the purchase price related taxes and
any attributable expenditure for bringing the asset to working condition for its intended use.The initial cost of self-constructed fixed assets is measured in accordance with the policy set
out in Note 5.15.Where the parts of an item of fixed assets have different useful lives or provide benefits to the
Group in a different pattern thus necessitating use of different depreciation rates or methods
each part is recognized as a separate fixed asset.For any subsequent cost of fixed assets including the cost of replacing part of an item of
fixed assets when it is probable that the economic benefits associated with the costs will flow
to the Group it shall be capitalized and included in the cost of fixed assets and the carrying
amount of the replaced part is derecognized meanwhile; and the costs related to the
day-to-day maintenance of fixed assets shall be recognized in current profit or loss as
incurred.Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
5.14.2 Depreciation of fixed assets
The cost of a fixed asset less its estimated residual value and accumulated impairment losses
is depreciated using the straight-line method over its estimated useful life unless the fixed
asset is classified as held for sale.The useful lives residual value rates and annual depreciation rates of each class of fixed
86Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
assets are as follows:
Residual value rate Annual depreciation rate
Class Useful 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.
5.14.3 For impairment testing method and impairment provision method refer to Note 5.21.
5.14.4 Disposal of fixed assets
The Group will derecognize of a fixed asset when meeting one of the following conditions:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying amount of
the item and are recognized in profit or loss on the date of retirement or disposal.
5.15 Construction in progress
The cost of self-constructed fixed assets includes the cost of materials direct labor
capitalized borrowing costs and necessary costs attributable to bringing the asset to working
condition for its intended use.A self-constructed fixed asset is classified as construction in progress and transferred to fixed
asset when it is ready for its intended use. No depreciation is provided against construction in
progress.Construction in progress is stated in the balance sheet at cost less impairment losses (see
Note 5.21).If an enterprise sells products or by-products produced by fixed assets before they reach their
intended usable state to the outside parties in accordance with the provisions of Accounting
Standards for Business Enterprises No. 14 – Revenue and Accounting Standards for Business
Enterprises No. 1 – Inventories relevant income and costs shall be accounted for separately
and included in profit or loss for the current period.
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5.16 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction or
production of a qualifying asset are capitalized as part of the cost of the asset. Other
borrowing costs are recognized as financial expenses when incurred.During the capitalization period the amount of interest (including amortization of any
discount or premium on borrowing) to be capitalized in each accounting period is determined
as follows:
- Where funds are borrowed specifically for the acquisition and construction or production
of a qualifying asset the amount of interest to be capitalized is the interest expense calculated
using effective interest rates during the period less any interest inco me earned from
depositing the borrowed funds or any investment income on the temporary investment of
those funds before being used on the asset.- To the extent that the Group borrows funds generally and uses them for the acquisition
and construction or production of a qualifying asset the amount of borrowing costs eligible
for capitalization is determined by applying a capitalization rate to the weighted average of
the excess amounts of cumulative expenditure on the asset over the above amounts of
specific borrowings. The capitalization rate is the weighted average of the interest rates
applicable to the general-purpose borrowings.The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or when appropriate a shorter period to
the initially recognized amount of the borrowings.During the capitalization period exchange differences related to the principal and interest on
a specific-purpose borrowing denominated in foreign currency are capitalized as part of the
cost of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognized as a
financial expense when incurred.The capitalization period is the period from the date of commencement of capitalization of
borrowing costs to the date of cessation of capitalization excluding any period over which
capitalization is suspended. Capitalization of borrowing costs commences when expenditure
for the asset is being incurred borrowing costs are being incurred and activities of
acquisition construction or production that are necessary to prepare the asset for its intended
use are in progress and ceases when the assets become ready for their intended use.Capitalization of borrowing costs should cease when the qualifying asset being constructed or
produced has reached its expected usable or saleable condition. Capitalization of borrowing
costs is suspended when the acquisition construction or production activities are interrupted
abnormally for a period of more than three months.
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5.17 Biological assets
The biological assets of the Group are productive biological assets.Productive biological assets are biological assets held for the purposes of producing
agricultural produce rendering of services or rental. Productive biological assets in the Group
are vines. Productive biological assets are initially measured at cost. The cost of self-grown
or self-bred productive biological assets represents the necessary attributable expenditure
incurred before satisfying the expected production and operating purpose including
capitalized borrowing costs.Productive biological assets after reaching the expected production and operating purpose
are depreciated using the straight-line method over its useful life. The useful lives estimated
net residual value rates and annual depreciation rates of productive biological assets are as
follows:
Estimated net residual rate Annual depreciation rate
Category Useful life (years)
(%)(%)
Vines 20 years 0% 5.0%
The Group evaluates the useful life and expected net residential value by considering the
normal producing life of the productive biological assets.Useful lives estimated residual values and depreciation methods of productive biological
assets are reviewed at least at each year-end. Any changes should be treated as changes in
accounting estimates.For a productive biological asset that has been sold damaged dead or destroyed any
difference between the disposal proceeds and the carrying amount of the asset (after tax
deduction) should be recognized in profit or loss for the period in which it arises.
5.18 Intangible assets
Service life and amortization method
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where
the estimated useful life is finite) and impairment losses (see Note 5.21). For an intangible
asset with finite useful life its cost estimated less residual value and accumulated impairment
losses is amortized on the straight-line method over its estimated useful life unless the
intangible asset is classified as held for sale.The respective service life determination basis and amortization method for intangible
assets are as follows:
89Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Service life (years) Determination basis Amortization method
Land use rights 40 – 50 years Period of land use rights Straight-line method
The shorter one of software
Software licenses 5 – 10 years service life or expected Straight-line method
service life
The shorter one of duration
Trademark rights 10 years of trademark rights or Straight-line method
expected service life
The useful life and amortization method of intangible assets with limited useful life are
reviewed at least at each year-end.An intangible asset is regarded as having an indefinite useful life and is not amortized when
there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group. At the balance sheet date the Group had intangible assets
with infinite useful lives including the land use rights and trademarks. Land use rights with
infinite useful lives are permanent land use rights with permanent ownership held by the
Group under the relevant Chile and Australian laws arising from the Group’s acquisition of
Vi?a Indómita S.A. Vi?a Dos Andes S.A. and Bodegas Santa Alicia SpA. (collectively
referred to as the “Chile Indomita Wine Group”) and the acquisition of Kilikanoon Estate
Pty Ltd (hereinafter referred to as the “Australia Kilikanoon Estate”) therefore there was no
amortization. The right to use trademark refers to the trademark held by the Group arising
from the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate
with infinite useful lives. The valuation of trademark was based on the trends in the market
and competitive environment product cycle and managing long-term development strategy.Those bases indicated the trademark will provide net cash flows to the Group within an
uncertain period. The useful life is indefinite as it was hard to predict the period that the
trademark would bring economic benefits to the Group.
5.19 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 amortized and is stated in the balance sheet at cost less accumulated
impairment losses (see Note 5.21). On disposal of an asset group or a set of asset groups any
attributable goodwill is written off and included in the calculation of the profit or loss on
disposal.
5.20 Long-term deferred expenses
Long-term deferred expenses are amortized using a straight-line method within the benefit
period. The respective amortization periods for such expenses are as follows:
Item Amortization period
90Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Land requisition fee 50 years
Land lease fee 50 years
Greening fee 5-20 years
Renovation fee 3-5 years
Others 3 years
5.21 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based
on internal and external sources of information to determine whether there is any indication
of impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- productive biological asset
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses etc.If any indication exists the recoverable amount of the asset is estimated. In addition the
Group estimates the recoverable amounts of goodwill and intangible assets with infinite
useful lives at each year-end irrespective of whether there is any indication of impairment.Goodwill is allocated to each asset group or set of asset groups that is expected to benefit
from the synergies of the combination for the purpose of impairment testing.The recoverable amount of an asset (or asset group set of asset groups) is the higher of its
fair value (see Note 5.21) less costs to sell and its present value of expected future cash
flows.An asset group is composed of assets directly related to cash-generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.The present value of expected future cash flows of an asset is determined by discounting the
future cash flows estimated to be derived from continuing use of the asset and from its
ultimate disposal to their present value using an appropriate pre-tax discount rate.
91Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
An impairment loss is recognized in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognized
accordingly. Impairment losses related to an asset group or a set of asset groups are allocated
first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset
groups and then to reduce the carrying amount of the other assets in the asset group or set of
asset groups on a pro rata basis. However such allocation would not reduce the carrying
amount of an asset below the highest of its fair value less costs to sell (if measurable) its
present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized it is not reversed in a subsequent period.
5.22 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 i n
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 o n
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.
5.23 Estimated liabilities
If the obligation related to contingencies is a current obligation undertaken by the Group and
the performance of such obligation is likely to result in the outflow of economic benefits
from the Group and the relevant amount can be reliably measured the Group will recognize
the estimated liability.The estimated liabilities are initially measured based on the best estimate of the expenses
required to fulfill the relevant current obligations. For assets that have a significant impact on
the time value of money the estimated liability is determined by discounting the estimated
future cash flows. When determining the best estimate the Group takes into account factors
such as risks uncertainties and time value of money related to contingencies. If the required
expenditure exists a continuous range and the likelihood of various outcomes occurring
within this range is the same the best estimate is determined based on the median value
within this range; and in other cases the best estimate is handled as follows:
- If the contingency involves a single item it shall be determined based on the most likely
amount to occur.- If the contingency involves multiple items it shall be determined based on various
possible outcomes and related probabilities.
92Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
The Group reviews the carrying amount of estimated liabilities on the balance sheet date and
adjusts the carrying amount based on the current best estimate.
5.24 Share-based payment
5.24.1 Type of share-based payment
The share-based payment of this Group is equity-settled share-based payment.
5.24.2 Accounting treatment related to implementing share-based payment plan
- Equity-settled share-based payment
When the Group exchanges shares or other equity instruments for employee services the
equity instruments granted to employees shall be measured at fair value on the grant date. For
share-based payment transactions that are immediately exercisable upon grant the Group
recognizes the fair value of equity instruments as relevant costs or expenses on the grant date
and increases capital reserves accordingly. For share-based payment transactions that can
only be exercised after completing the vesting period for services or meeting the prescribed
performance conditions after the grant the Group will make the best estimate of the number
of feasible equity instruments on each balance sheet date during the vesting period based on
subsequent information such as changes in the number of feasible employees. Based on this
the services obtained in the current period will be included in relevant costs or expenses
according to the fair value of the equity instruments on the grant date and correspondingly
included in capital reserves.When the Group accepts services but does not have settlement obligations and the equity
instruments granted to employees are those of the ultimate controlling party of the Company
or its controlled subsidiaries other than the Group the Group will treat this share-based
payment plan as a share-based payment for equity settlement.
5.25 Revenue
Revenue refers to the gross inflow of economic benefits formed during the course of the
ordinary activities of the Group which may increase the shareholders’ equities and is
irrelevant to the invested capital of the shareholders.The Group recognizes the revenue upon fulfillment of its performance obligations in the
contract that is the client obtains control right over the relevant goods or services.If there are two or more performance obligations under the contact which shall be fulfilled
the Group will apportion the transaction price to various individual performance obligations
in accordance with the relative proportion of separate selling prices of various goods or
services under these performance obligations on the commencement date of the contract and
measure and recognize the revenue in accordance with the transaction prices apportioned to
various individual performance obligations. The stand-alone selling price refers to the price at
which the Group sells goods or provides services to customers separately. If the stand-alone
selling price cannot be directly observed the Group comprehensively considers all the
93Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
relevant information that can be reasonably obtained and uses observable input values to the
greatest extent to estimate the stand-alone selling price.For contracts with quality assurance clauses the Group analyzes the nature of the quality
assurance provided. If quality assurance provides a separate service in addition to ensuring to
the client that the goods sold meet the established standards the Group will treat it as an
individual performance obligation. Otherwise the Group conducts accounting treatment in
accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.The transaction price refers to the amount of consideration that the Group expects to be
entitled to receive due to the transfer of goods or services to the client excluding payments
received on behalf of third parties. The transaction price recognized by the Group does not
exceed the amount at which the accumulated recognized revenue will most likely not undergo
a significant reversal when the relevant uncertainty is eliminated. In the event that there is a
significant financing part in the contract the Group determines the transaction price based on
the amount payable in cash when the client obtains control right over the relevant goods or
services. The difference between the transaction price and the contract consideration shall be
amortized by the effective interest method during the contract period. From the day of the
enforcement of the contract the Group expects that the interval between the client's
acquisition of control right over the goods or services and the client’s payment of the price
will not exceed one year regardless of the significant financing part in the contract.If the Group meets one of the following conditions the fulfillment of its performance
obligations in a certain period will be deemed or the fulfillment of its performance
obligations at a certain time point will be deemed:
- The client obtains and consumes the economic benefits while the Group fulfills the
performance obligation;
- The client manages to control the goods in process while the Group fulfills the
performance obligation.- Goods produced during the performance period have irreplaceable purposes and the
Group is entitled to charge money for the performance accumulated and has been finished
until the current time within the whole contract period.For any performance obligations fulfilled in a certain period the Group will recognize
revenue within the certain period in accordance with the performance progress. If the
performance progress cannot be determined reasonably and costs incurred are expected to be
compensated of the Group the revenue will be ascertained according to the costs incurred
until the performance progress is determined reasonably.In terms of performance obligations fulfilled at a certain time point the Group will recognize
revenue when the client gains control right over the relevant goods or services. When it
comes to determining whether a client has acquired the control right over goods or services
the Group will consider the following conditions:
- The Group has the current right to receive payment for the goods or services;
- The Group has transferred the goods in kind to the client;
- The Group has transferred the legal ownership of the product or the main risks and
rewards of ownership to the client;
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- The client has accepted the goods or services etc.For sales with sales return clauses when the customer obtains control of the relevant goods
the Group recognizes revenue based on the amount of consideration expected to be entitled to
receive due to the transfer of goods to the customer (that is does not include the expected
amount to be refunded due to sales return) and recognizes liabilities based on the expected
amount to be refunded due to sales returns. At the same time based on the book value at the
time of transfer of the goods expected to be returned the Group recognizes as an asset the
balance after deducting the estimated cost of recovering the goods (including the value
impairment of the returned goods). Based on the book value of the transferred goods at the
time of transfer the Group carries over as the cost the net amount after deducting the above
asset cost. On each balance sheet date the Group re-estimates the future sales returns. If there
is any change it shall be treated as a change in accounting estimates.The Group has transferred the goods or services to the client and thus has the right to receive
corresponding consideration (and the right is dependable on factors other than time lapses) as
contract asset which is subject to provision of impairment on the basis of expected credit
loss. The right enjoyed by the Group (only depends on time lapses) to receive consideration
unconditionally from the client shall be presented under account receivables. The Group
presents the obligation of transferring goods or services for the client due to the consideration
received or receivable as contract liabilities.The specific accounting policies related to the main activities of the Group’s revenue are
described as follows:
The Group’s sales revenue mainly comes from dealer sales. The revenue will be recognized
when the Group transfers control of the related products to the customer. According to the
business contract for these transfers the time when the product is confirmed a nd signed by
the customer shall be recognized as the confirming point of the sales revenue.
5.26 Contract cost
Contract cost includes incremental cost for being awarded the contract and performance cost
of the contract.Incremental cost for being awarded the contract refers to the cost that the Group would not
need to pay if no such contracts are awarded (e.g. sales commissions etc.) Where such cost is
expected to be recovered the Group shall take it as the contract acquisition cost and
recognize it as an asset. Expenses incurred by the Group to be awarded contract other than
incremental cost expected to be recovered shall be recognized in current profits and losses
when incurred.Any cost incurred by the Group for the performance of any contract that doesn’t fall into the
scope of other businesses specified in the Standard such as inventory but meets the following
conditions simultaneously shall be taken as contract performance cost and recognized as an
asset.- Where such cost is directly related to a current or anticipated contract including direct
95Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
labor cost direct material cost manufacturing expenses (or similar expenses) costs clearly
specified to be borne by the customer and other costs incurred solely due to the contract;
- Where such cost includes resources to be used by the Group to fulfill future performance
obligations;
- Where such cost is expected to be recovered.Assets recognized for contract acquisition cost and assets recognized for contract
performance cost (hereinafter referred to as “assets related to contract cost”) shall be
amortized on the same basis as the revenue recognition of goods or services related to such
assets and recognized in current profits and losses. Where the amortization period of assets
recognized for the contract acquisition cost does not exceed one year they shall be
recognized in current profits and losses.Where the book value of assets related to contract costs is higher than the difference between
the following two items the Group shall withdraw the impairment reserves of the excess part
and recognize it as the asset impairment loss:
- Residual consideration expected to be obtained arising from the transfer of goods or
services related to the assets by the Group;
- Cost estimated to be occurred for the transfer of the relevant goods or services.
5.27 Employee benefits
5.27.1 Short-term employee benefits
Employee wages or salaries bonuses social security contributions such as medical insurance
work injury insurance maternity insurance and housing fund measured at the amount
incurred or accrued at the applicable benchmarks and rates are recognized as a liability as the
employee provides services with a corresponding charge to profit or loss or included in the
cost of assets where appropriate.
5.27.2 Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China the Group
participated in a defined contribution basic pension insurance plan in the social insurance
system established and managed by government organizations. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks and rates
stipulated by the government. Basic pension insurance contributions payable are recognized
as a liability as the employee provides services with a corresponding charge to profit or loss
or included in the cost of assets where appropriate.
5.27.3 Termination benefits
When the Group terminates the employment with employees before the employment
contracts expire or provides compensation under an offer to encourage employees to accept
voluntary redundancy a provision is recognized with a corresponding expense in profit or
loss at the earlier of the following dates:
96Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
- 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.
5.28 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the
government to the Group except for capital contributions from the government in the
capacity as an investor in the Group.A government grant is recognized when there is reasonable assurance that the grant will be
received and that the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset it is measured at fair value.Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets. A
government grant related to an asset is recognized as deferred income and amortized over the
useful life of the related asset on a reasonable and systematic manner as other income or
non-operating income. A grant that compensates the Company for expenses or losses to be
incurred in the future is recognized as deferred income and included in other income or
non-operating income in the periods in which the expenses or losses are recognized or
included in other income or non-operating income directly.
5.29 Income tax
Current tax and deferred tax are recognized in profit or loss except to the extent that they
relate to a business combination or items recognized directly in equity (including other
comprehensive income).Current tax is the expected tax payable calculated at the applicable tax rate on taxable income
for the year plus any adjustment to tax payable in respect of previous years.At the balance sheet date current tax assets and liabilities are offset only if the Group has a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realize the asset and settle the liability simultaneously.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases which include the deductible
losses and tax credits carried forward to subsequent periods. Deferred tax assets are
97Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
recognized to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilized.Deferred tax is not recognized for the temporary differences arising in a single transaction
that is not a business combination and affects neither accounting profit nor taxable profit (or
deductible loss) at the time of the transaction and the initially recognized assets and
liabilities do not result in equal taxable temporary differences or deductible temporary
differences. Deferred tax is not recognized for taxable temporary differences arising from the
initial recognition of goodwill.At the balance sheet date deferred tax is measured based on the tax consequences that would
follow from the expected manner of recovery or settlement of the carrying amounts of the
assets and liabilities using tax rates enacted at the balance sheet date that are expected to be
applied in the period when the asset is recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilized.Such reduction is reversed to the extent that it becomes probable that sufficient taxable
profits will be available.At the balance sheet date deferred tax assets and deferred tax liabilities are offset if all of the
following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current
tax assets;
- they relate to income taxes levied by the same tax authority on either: the same taxable
entity; or different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis or to realize the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax liabilities
or deferred tax assets are expected to be settled or recovered.
5.30 Lease
Lease refers to a contract in which it is agreed that the lessor conveys the use right of any
asset to the lessee for a period of time in exchange for consideration.On the contract start date the Group shall evaluate whether the contract is or contains a
lease. Where either party thereto conveys the right to control the use of one or more
identified assets for a period of time in exchange for consideration the contract is or
contains a lease.To determine whether the contract conveys the right to control the use of identified assets for
a period of time the Group conducts the following assessments:
- Whether the contract involves the use of an identified asset. An identified asset can be
either explicitly specified in a contract or implicitly when the asset is available to the
98Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
customer and can be a physically distinct portion or if some capacity or other portion of the
asset is not physically distinct but substantially represents the full capacity of the asset so
that the customer obtains substantially all of the economic benefits from the use of the asset.If the supplier of the asset has the practical ability to substitute the asset throughout the
period of use the asset is not an identified asset;
- Whether the lessee has the right to obtain substantially all of the economic benefits from
the use of the identified asset throughout the period of use; and
- Whether the lessee has the right to direct the use of an identified asset throughout this
period of use.If the contract contains multiple separate leases at the same time the lessee and lessor will
split the contract and have each separate lease separately subject to accounting treatment. If
the contract includes lease and non-lease parts at the same time the lessee and the lessor will
split them separately. When splitting the lease and non-lease parts included in the contract
the lessee shall allocate the contract consideration according to the relative proportion of the
sum of the stand-alone price of each lease part and the stand-alone price of each non-lease
part. The lessor shall allocate the contract consideration in accordance with the provisions on
transaction price allocation in the accounting policy stated in Note 5.22.
5.30.1 Where the Group is the lessee
Upon the commencement of the lease term the Group recognizes right-of-use assets and
lease liabilities for leases. The right-of-use assets are initially measured at cost including
initially measured amount of leased liability; amount of lease payments made on or before
the commencement date of the lease term (the related amount of lease incentive having been
enjoyed shall be deducted); initial direct costs incurred and costs that the Group expects to
incur to disassemble and remove leased assets restore the site where leased assets are located
or restore leased assets to the agreed condition under the terms of the lease.The Group employs the straight-line method to depreciate right-of-use assets. Where it can be
reasonably recognized that the ownership of leased assets will be obtained by the Group upon
expiration of the lease term leased assets will be depreciated during the service life;
otherwise leased assets will be depreciated during the lease term or the remaining service life
of such leased assets by the Group whichever is shorter. Right-of-use assets shall be
provided for impairment in accordance with the accounting policies stated in Note 5.21.When initially calculating the present value of the unpaid lease payment at the
commencement date of the lease term the Group shall employ the interest rate implicit in the
lease as the discount rate; where the interest rate implicit in the lease cannot be determined
the incremental lending rate of the Group shall be used as the discount rate.The Group calculates the interest expense of lease liabilities in each period of the lease term
according to a fixed periodic rate which will be included in current profits and losses or asset
cost. The variable lease payment not included in the measurement of lease liabilities shall be
recognized in current profits and losses and loss or related asset cost when they actually
occur.In case of any of following circumstances after the commencement date of the lease term the
Group will re-measure lease liabilities at the present value of the lease payment after any
change:
99Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
- Where the amount payable anticipated changes according to the guaranteed residual
value;
- Where the index or ratio used for recognizing the lease payment changes;
- Where there is a change in the Group's assessment results of the option of purchase
renewal option or option of termination of lease or the actual exercising of the termination of
the renewal option or option of termination of lease is inconsistent with the original
assessment result.When the Group re-measures lease liabilities the book value of right-of-use assets shall be
adjusted accordingly. Where the book value of right-of-use assets has been reduced to zero
but lease liabilities still need to be subject to further reduction the remaining amount shall be
recognized in current profits and losses.The Group does not recognize right-of-use assets and leased liabilities for short-term lease
(lease with a lease term within 12 months) and lease of low-value assets. The Group shall
include related lease payment into the current profits and losses or relevant asset costs
according to the straight-line method in each period of the lease term.
5.30.2 The Group as the lessor
From the inception of lease the Group will divide leases into finance lease and operating
lease. Finance lease refers to a lease in which almost all the risks and returns related to the
ownership of the leased asset are essentially transferred regardless of whether the ownership
is finally transferred or not. Operating lease refers to other leases except for the finance lease.When the Group is the sublease lessor the sublease shall be classified based on the
right-of-use assets arising from the original lease rather than the underlying assets of the
original lease. If the original lease is a short-term lease and the Group elects to apply the
above-mentioned simplified treatment of short-term lease to the original lease the Group
shall classify the sublease as an operating lease.For finance leases from the commencement date of the lease term the Group recognizes
finance lease receivables for finance leases and derecognizes the finance lease assets. The
Group regards the net investment in a lease as the entry value of finance lease receivables at
the time of initial measurement of finance lease receivables. The net investment in a lease is
the sum of the present value of unguaranteed residual value and rental receipts not received
yet on the commencement date of the lease term which is subject to discounting at the
interest rate implicit in the lease term.The Group calculates and recognizes the interest income in each period within the lease term
according to a fixed periodic rate. Derecognition and impairment of finance lease receivables
shall be subject to accounting treatment in accordance with the accounting policies stated in
Note 5.10. The variable lease payment which is not included in the net investment in a lease
shall be recognized in current profits and losses when it actually occurs.During each period of the lease term the Group recognizes lease receipts from operating
leases as rental revenue by using the straight-line method. The Group capitalizes initial direct
costs pertaining to operating leases upon their occurrence and apportions them as per the
100Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
same basis used for recognizing the rental income within the lease term and includes them in
current profits and losses by period. The variable lease receipts related to operating leases
that are not included in the lease receipts shall be recognized in current profits and losses
when they actually occur. The variable lease payment which is not included in the lease
receipts shall be recognized in current profits and losses when it actually occurs.
5.31 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 wil l
be transferred in the transaction.A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in
similar transactions the non-current asset or disposal group must be available for immediate
sale in their present condition subject to terms that are usual and customary for sales of such
assets or disposal groups;
- Its sale is highly probable that is the Group has made a resolution on a sale plan and
has obtained a firm purchase commitment. The sale is to be completed within one year.Non-current assets or disposal groups held for sale are stated at the lower of carrying amount
and fair value less costs to sell (except financial assets deferred tax assets and investment
properties subsequent measured at fair value initially and subsequently. Any excess of the
carrying amount over the fair value less costs to sell is recognized as an impairment loss in
profit or loss.
5.32 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan which will be
approved after the balance sheet date are not recognized as a liability at the balance sheet
date but are disclosed in the notes separately.
5.33 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.
101Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
In addition to the related parties stated above the Group determines related parties based on
the disclosure requirements of Administrative Procedures on the Information Disclosures of
Listed Companies issued by the CSRC.
5.34 Segment reporting
The Group is principally engaged in the production and sales of wine brandy and sparkling
wine in China France Spain Chile and Australia. In accordance with the Group’s internal
organization structure management requirements and internal reporting system the Group’s
operation is divided into four parts: China Spain France Chile and Australia. The
management periodically evaluates segment results in order to allocate resources and
evaluate performances. In 2024 over 84% of revenue more than 90% 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.
5.35 Significant accounting estimates and judgments
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets liabilities income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and in any future periods affected.For significant accounting estimates of this Company see Notes 5.3 7 11 and 16.
5.36 Changes in significant accounting policies and accounting estimates
5.36.1 Changes in significant accounting policies
Nil
5.36.2 Changes in significant accounting estimates
Nil
6. Taxes
6.1 Main taxes and tax rates
Tax category Taxation basis Tax rates
Levied on the balance between the output tax 13% 9% 6% (China) 20% (France)
Value added tax calculated based on taxable income and the input 21% (Spain) 19% (Chile) 10%
tax allowed to be deducted in current period. (Australia)
10% of the price 20% of the price and
Consumption tax Levied on taxable income.
1000 yuan each ton (China)
City development
Levied on circulation tax actually paid. 7% (China)
tax
102Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Corporate income 25% (China) 25% (France) 28%
Levied on taxable income.tax (Spain) 27% (Chile) 30% (Australia)
6.2 Tax incentives
Ningxia Changyu Grape Growing Co. Ltd. (“Ningxia Growing”) a subsidiary of the Group
engaged in grape growing is incorporated in Yongning County Ningxia Huizu Autonomous
Region. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC
Corporate Income Tax Measures for Implementation Ningxia Growing enjoys the
preferential policy of an exemption of corporate income tax from grape cultivation income.Yantai Changyu Grape Growing Co. Ltd. (“Grape Growing”) a branch of the Company
engaged in grape growing is incorporated in Zhifu District Yantai City Shandong Province.According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate
Income Tax Measures for Implementation Grape Growing enjoys the preferential policy of
an exemption of corporate income tax from grape cultivation income.Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co. Ltd. (“R&Dand Growing”) a branch of the Company engaged in grape growing is incorporated in
YEDA Shandong Province. According to Clause 27 of PRC Corporate Income Tax and
Clause 86 of PRC Corporate Income Tax Measures for Implementation R&D and Growing
enjoys the preferential policy of an exemption of corporate income tax from grape cultivation
income.Beijing Changyu AFIP Agriculture Development Co. Ltd. (“Agriculture Development”) a
subsidiary of the Group engaged in grape growing is incorporated in Miyun County Beijing.According to clause 27 of the Corporate Income Tax Law of the People’s Republic of China
and clause 86 of the Implementation Rules of Enterprise Income Tax Law of the People’s
Republic of China Agriculture Development enjoys the preferential policy of an exemption
of corporate income tax from grape cultivation income.Xinjiang Babao Baron Chateau Co. Ltd. (“Shihezi Chateau”) a subsidiary of the Company
is an enterprise of wine production incorporated in Shihezi City Xinjiang Uygur
Autonomous Region. In accordance with Announcement on Continuing the Enterprise
Income Tax Policies for the Large-Scale Development of Western China of the Ministry of
Finance the State Taxation Administration and the National Development and Reform
Commission (Announcement No. 23 [2020] of the Ministry of Finance) Shihezi Chateau is
qualified to enjoy preferential taxation policies which means it can pay corporate income tax
at a preferential rate of 15% for the period from 2021 to 2030.Ningxia Chateau Changyu Longyu Co. Ltd. (referred to as “Ningxia Chateau”) a subsidiary
of the Company is an enterprise of wine production incorporated in Yinchuan City Ningxia
Huizu Autonomous Region. In accordance with Announcement on Continuing the Enterprise
Income Tax Policies for the Large-Scale Development of Western China of the Ministry of
Finance the State Taxation Administration and the National Development and Reform
Commission (Announcement No. 23 [2020] of the Ministry of Finance) Ningxia Chateau is
qualified to enjoy preferential taxation policies which means it can pay corporate income tax
at a preferential rate of 15% for the period from 2021 to 2030.
103Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Changyu (Ningxia) Wine Co. Ltd. (“Ningxia Wine”) a subsidiary of the Company is an
enterprise of raw wine production incorporated in Yinchuan City Ningxia Huizu
Autonomous Region. In accordance with Announcement on Continuing the Enterprise
Income Tax Policies for the Large-Scale Development of Western China of the Ministry of
Finance the State Taxation Administration and the National Development and Reform
Commission (Announcement No. 23 [2020] of the Ministry of Finance) Ningxia Wine is
qualified to enjoy preferential taxation policies which means it can pay corporate income tax
at a preferential rate of 15% for the period from 2021 to 2030.According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Further Implementing the Preferential Income Tax Policies for
Micro and Small Enterprises (Announcement No. 13 of [2022] of the Ministry of Finance
and the State Taxation Administration) the annual taxable income of a small low-profit
enterprise that is not less than 1 Million Yuan and not more than 3 Million yuan shall be
included in its taxable income at the reduced rate of 25% with the applicable enterpriseincome tax rate of 20%. Beijing Changyu Wine Industry Marketing Co. Ltd. (“BeijingAllotting”) a subsidiary of the Group has been identified as eligible small low -profit
enterprise.According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Exempting Small-Scale Value-Added Tax Taxpayers from
Value-Added Tax (Announcement No. 19 of [2023] of the Ministry of Finance and the State
Taxation Administration) on August 1 2023 small-scale VAT taxpayers with monthly sales
below 100000 yuan (including this amount) are exempt from value-added tax small-scale
VAT taxpayers subject to a levy rate of 3% on taxable sales income will enjoy a reduced VAT
rate of 1%; and prepaid VAT items that are subject to a 3% pre-levy rate will enjoy a reduced
VAT prepayment rate of 1%. The announcement shall be executed until December 31 2027
and Xinjiang Changyu Sales Co. Ltd. Weimeisi Tasting Center Branch enjoys this exemption
policy.According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Further Strengthening the Implementation of the Policies
Regarding the Refund of Term-End Excess Input Value-Added Tax Credits (Announcement
No. 14 of [2022] of the Ministry of Finance and the State Taxation Administration) it will
further strengthen the implementation of the refund of term-end excess input value-added tax
credits and expand the industry scope of the policy of fully refunding the excess input
value-added tax credits. This Company and eligible subsidiaries have enjoyed the refund of
term-end excess input value-added tax credits.According to the Announcement of the Ministry of Finance and the State Taxation
Administration on Further Implementing the “Six Taxes and Two Fees” Reduction and
Exemption Policies for Micro and Small Enterprises (Announcement No. 10 of [2022]) as
determined by the people’s government of a province autonomous region or municipality
directly under the Central Government in light of the actual circumstances of the local region
from January 1 2022 to December 31 2024 a small-scale VAT taxpayer a small low-profit
enterprise or an individual industrial and commercial household may be pay resource tax
urban maintenance and construction tax property tax urban land use tax stamp tax
(excluding securities trading stamp tax) farmland occupation tax educational surtax or local
education surcharges at the reduced tax rate of 50% or less. Shandong Xinjiang Ningxia
104Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual ReportShaanxi and other provinces (autonomous regions and municipalities) have reduced the “sixtaxes and two fees” by 50% and some of the Company’s subsidiaries are eligible for the
reduction.
7. Notes to items in the consolidated financial statement
7.1 Monetary capital
Unit: yuan
Item Ending balance Beginning balance
Cash on hand 28867 74951
Bank deposit 1603134009 2217280801
Other monetary capital 56521864 337895
Total 1659684740 2217693647
Including: Total overseas deposits 32640469 24317469
As at June 30 2024 the bank deposits of the Group including short-term fixed deposits ranging
from 3 months to 12 months and interests amounted to RMB 87200000 yuan with the interest
rates ranging from 1.75% to 2.25% (December 31 2023: RMB 254200000 yuan).As at June 30 2024 the details of other monetary funds are listed as follows:
Unit: yuan
Item Ending balance Beginning balance
Deposit investment funds for stock repurchase 49050278
Guaranteed deposits paid for the letter of credit 6500000
Account balance of Alipay 830078 192997
Guaranty money for ICBC platform 10000 10000
Guaranty money for customs 131508 134898
Total 56521864 337895
As of June 30 2024 the Group does not have any special interest arrangements such as
establishing joint fund management accounts with related parties.
7.2 Bills receivable
Classification of bills receivable
Item Ending balance Beginning balance
Bank acceptance bills 440667 1260000
Total 440667 1260000
The above bills receivable are all due within one year.
105Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.3 Accounts receivable
7.3.1 Disclosed by age:
Unit: yuan
Age Ending book balance Beginning book balance
Within 1 year (including 1 year) 174171825 387161172
1-2 years 588650 2367283
2-3 years 6499530 5396673
Over 3 years 365654
Total 181260005 395290782
As at June 30 2024 the accounts receivable with ownership restrictions were RMB 56793558
yuan (December 31 2023: 73628265 yuan). Please refer to Note 7.20 for details.
7.3.2 Accounts receivable are analyzed by customer category as follows:
Ending balance
Name
Book balance Provision for bad debts Accrued proportion
Receivable from related parties 4372960 4180 0.96%
Other customers 176887045 9070906 5.13%
Total 181260005 9075086 --
7.3.3 Disclosed by provision for bad debts:
Unit: yuan
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Accrued value Accrued value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable for
which provision
for bad debts is
accrued on a
single item basis
Accounts
receivable for
which provision
181260005100%90750865.01%172184919395290782100%131584483.30%382132334
for bad debts is
accrued on a
combined basis
Total 181260005 100% 9075086 5.01% 172184919 395290782 100% 13158448 3.30% 382132334
7.3.4 Provision for bad debts accrued withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
106Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Unit: yuan
Changes in this period
Beginning Ending
Type Withdrawn or
balance Accrued Cancelled Others balance
transferred back
Provision for bad debts is
13158448-40833629075086
accrued on a combined basis
Total 13158448 -4083362 9075086
7.3.5 Accounts receivable actually cancelled after verification in this period
Nil
7.3.6 Accounts receivable and contract assets situation collected by borrowers of top 5 units
ranked by ending balance
Unit: yuan
Ending balance of Percentage in total Ending balance of bad
Ending balance of Ending
accounts ending balance of debts provision and
Unit name accounts balance of
receivable and accounts receivable provision for impairment
receivable contract assets
contract assets and contract assets of contract assets
Customer 1 25215862 25215862 13.9% 24105
Customer 2 10028632 10028632 5.5% 167407
Customer 3 6160864 6160864 3.4% 102843
Customer 4 5454585 5454585 3.0% 91053
Customer 5 4158078 4158078 2.3% 69410
Total 51018021 51018021 28.10% 454818
7.3.7 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.3.8 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Receivables financing
Unit: yuan
Item Ending balance Beginning balance
Bills receivable 212135108 408316028
Total 212135108 408316028
7.4.1 Pledged bills receivable of the Group at the end of the year
Nil
107Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.4.2 Outstanding endorsed bills that have not matured at the end of the year
Type Amount derecognized at end of period
Bank acceptance bills 73067006
Total 73067006
As at June 30 2024 bills endorsed by the Group to other parties which are not yet due is RMB
73067006 yuan (December 31 2023: RMB 394923505 yuan). The notes are used for payment
to suppliers and constructions. The Group believes that due to good reputation of bank the risk of
notes not accepting by bank on maturity is very low therefore derecognize the note receivables
endorsed. If the bank is unable to pay the notes on maturity according to the relevant laws and
regulations of China the Group would undertake limited liability for the notes.
7.5 Advance payment
7.5.1 Advance payment listed by age
Unit: yuan
Ending balance Beginning sum
Age
Amount Proportion Amount Proportion
Within 1 year 45688203 99.93% 61468643 99.95%
1-2 years 29914 0.07% 29290 0.05%
2-3 years
More than 3 years
Total 45718117 -- 61497933 --
7.5.2 Advance payment collected by prepaid parties of top 5 units ranked by ending balance
Unit: yuan
Percentage in the
Relationship with
Client type Amount Age Reason for unsettlement total advance
the Group
payment %
Unit 1 Third party 26048133 Within 1 year Prepaid payment for goods 57.0%
Unit 2 Third party 5389825 Within 1 year Prepaid payment for goods 11.8%
Unit 3 Third party 2145679 Within 1 year Prepaid service charge 4.7%
Unit 4 Third party 1232078 Within 1 year Prepaid service charge 2.7%
Unit 5 Third party 500000 Within 1 year Prepaid service charge 1.1%
Total -- 35315715 -- 77.30%
7.6 Other receivables
Unit: yuan
Item Ending balance Beginning balance
Interests receivable
Dividends receivable
108Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Other receivables 76437050 71496276
Total 76437050 71496276
Other receivables
7.6.1 Other receivables classified by nature
Unit: yuan
Nature Ending book balance Beginning book balance
Land acquisition and storage receivable 37768902 37768902
Consumption tax and added-value tax
2059982019104008
export rebate
Deposit and guaranty money receivable 6627431 5429202
Imprest receivable 266112 154354
Others 11174785 9039810
Total 76437050 71496276
7.6.2 Other receivables classified by nature
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 31878163 29551266
1-2 years 41905368 39753227
2-3 years 334355 160000
More than 3 years 2319164 2031783
Total 76437050 71496276
7.6.3 Provision for bad debts accrued withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 yuan; and that withdrawn or
transferred back in this period was RMB 0 yuan.
7.6.4 Other receivables actually cancelled after verification in this period
Nil
7.6.5 Other receivables collected by borrowers of top 5 units ranked by ending balance
Unit: yuan
Percentage in total Ending balance
Unit Name Nature Ending balance Age ending balance of other of provision for
accounts receivable bad debts
Land acquisition and reserve
Unit 1 37768902 1-2 years 49.41%
funds
109Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Value-added tax and
Unit 2 19390305 Within 1 year 25.37%
consumption tax export rebate
Unit 3 Housing maintenance fund 2670094 Within 1 year 3.49%
Unit 4 Value-added tax export rebate 736946 Within 1 year 0.96%
Unit 5 Guaranty money 572880 1-2 years 0.75%
Total -- 61139127 79.98%
7.6.6 Accounts receivable involving government subsidies
Nil
7.6.7 Other receivables that are terminated for recognition due to transfer of financial assets
Nil
7.6.8 Other receivables transferred and then included in assets and liabilities
Nil
7.7 Inventories
7.7.1 Inventory classification
Unit: yuan
Ending balance Beginning balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 78086555 78086555 241961713 241961713
Goods in process 2164760433 2164760433 1915860327 1915860327
Commodity stocks 661887880 18532217 643355663 625076081 17507534 607568547
Total 2904734868 18532217 2886202651 2782898121 17507534 2765390587
7.7.2 Inventory depreciation provision
Unit: yuan
Increase in this period Decrease in this period
Item Beginning balance Transfer back or Ending balance
Accrual Others Others
write-off
Raw materials
Goods in process
Commodity stocks 17507534 18532217 17507534 18532217
Total 17507534 18532217 17507534 18532217
7.8 Other current assets
Unit: yuan
110Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Ending balance Beginning balance
Accounts receivable return cost 16876869
Prepaid corporate income tax 17386402 4438001
Deductible input tax 53826234 65228189
Expense to be amortized 1699779 1825483
Total 72912415 88368542
7.9 Long-term equity investments
Unit: yuan
Movements during the period
Beginning Investment
Ending balance
Beginning balance balance of gains and Other Declare Ending balance
Investee Other Accrual of provision for
(book value) provision for Increase Decrease losses comprehensive cash (book value)
equity provision for Others impairment
impairment in capital in capita recognized income dividend changing impairment
under the adjustment or profit
equity method
1. Joint ventures
SAS L&M Holdings
37018893-187437035144523
(“L&M Holdings”)
Subtotal 37018893 -1874370 35144523
2. Associates
Shanghai Yufeng Brand
Management Co. Ltd.
36536223802389164
(“Shanghai Yufeng”)
(Note)
Yantai Guolong Wine
Industry Co. Ltd.
901365-81524819841
(“Yantai Guolong”)
(Note)
Subtotal 1266727 -57722 1209005
Total 38285620 -1932092 36353528
Note: The Group has appointed one director to each of these investees.
7.10 Investment real estate
7.10.1 Investment real estate by cost measurement method
Unit: yuan
Construction in
Item Houses and buildings Land use right Total
progress
I Original book value
111Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Construction in
Item Houses and buildings Land use right Total
progress
1. Beginning balance 81165619 81165619
2. Increase in this period
2.1 Outsourcing
2.2 Transfer in from
inventories\fixed assets\
construction in progress
2.3 Business merger increase
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 81165619 81165619
II. Accumulated depreciation &
accumulated amortization
1. Beginning balance 56682788 56682788
2. Increase in this period 1245831 1245831
2.1 Accrual or amortization 1245831 1245831
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 57928619 57928619
III. Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 23237000 23237000
2. Beginning book value 24482831 24482831
7.11 Fixed assets
Unit: yuan
Item Ending balance Beginning balance
Fixed assets 5687285125 5795082569
Disposal of fixed assets
112Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Ending balance Beginning balance
Total 5687285125 5795082569
7.11.1 Particulars of fixed assets
Unit: yuan
Houses and Machinery Transportation
Item Total
buildings equipment equipment
I. Original book value:
1. Beginning balance 5882104759 2811522051 24268214 8717895024
2. Increase in this period 5859902 37507199 1663156 45030257
2.1 Acquisition 5859902 36852644 1663156 44375702
2.2 Transfer in from construction in progress 654555 654555
2.3 Business merger increase
3. Decrease in this period 5582660 530858 6113518
3.1 Disposal or retirement 5582660 530858 6113518
3.2 Others
4. Ending balance 5887964661 2843446590 25400512 8756811763
II. Accumulated depreciation
1. Beginning balance 1312265801 1577413953 22769318 2912449072
2. Increase in this period 77980703 73637264 715559 152333526
2.1 Accrual 77980703 73637264 715559 152333526
3. Decrease in this period 5297683 321660 5619343
3.1 Disposal or retirement 5297683 321660 5619343
3.2 Others
4. Ending balance 1390246504 1645753534 23163217 3059163255
III. Impairment provision
1. Beginning balance 10363383 10363383
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal or retirement
3.2 Others
4. Ending balance 10363383 10363383
IV. Book value
1. Ending book value 4497718157 1187329673 2237295 5687285125
2. Beginning book value 4569838958 1223744715 1498896 5795082569
113Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
As at June 30 2024 the net value of the fixed assets with ownership restrictions was RMB
33600396 yuan (December 31 2023: RMB 37985117 yuan). Please refer to Note 7.20 for
details.
7.11.2 Particulars of temporarily idle fixed assets
Unit: yuan
Accumulated Depreciation
Item Original book value Book value Remarks
depreciation reserves
Machinery equipment 29423698 19060315 10363383
Total 29423698 19060315 10363383
7.11.3 Particulars of fixed assets under finance leases
Nil
7.11.4 Fixed assets under operating lease
Unit: yuan
Item Ending book value
Buildings 88875383
Machinery equipment 931
7.11.5 Particulars of fixed assets without property certificates
Unit: yuan
Reason for not receiving the property
Item Book value
certificate
Dormitory building main building and
256853439 Under transaction
reception building of Chang’an Chateau
European town main building and service
155905448 Under transaction
building of Chateau AFIP
Wine-making workshop of Changyu
4094630 Under transaction
(Jingyang)
Office building laboratory building and
4107265 Under transaction
workshop of Fermentation Center
Finished goods warehouse and workshop
1898121 Under transaction
of Kylin Packaging
Others 849213 Under transaction
Total 423708116
7.12 Construction in progress
Unit: yuan
Item Ending balance Beginning balance
Construction in progress 10097466 3323241
Engineering materials
114Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Total 10097466 3323241
7.12.1 Particulars of construction in progress
Unit: yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Museum project of Ningxia Chateau 1376147 1376147 1376147 1376147
Construction project of Shihezi Chateau 700000 700000 700000 700000
Ningxia brewing and fermentation
43075994307599200652200652
workshop
Projects of other companies 3713720 3713720 1046442 1046442
Total 10097466 10097466 3323241 3323241
115Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.12.2 Changes of major construction in progress in this period
Unit: yuan
Transferred Including:
Transferred Proportion of Accumulative
to long-term capitalized Capitalization
Beginning Increase in to fixed Ending accumulative capitalized Project name Budget unamortized amount of ratio of interest in Capital source
balance this period assets in this balance project input in amount of
expenses in interest in this period
period budget interest
this period this period
Construction
project of
780000000 700000 700000 98% Self-raised funds
Shihezi
Chateau
Ningxia
brewing and
6900000 200652 4106947 4307599 62.43% Self-raised funds
fermentation
workshop
As at June 30 2024 there was no indication for impairment of construction in progress of the Group so no provision for impairment was made.
116Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.13 Productive biological assets
7.13.1 Productive biological assets by cost measurement method
Unit: yuan
Plantation
Total Total
Immature Mature
Ⅰ Original book value
1. Beginning balance 32791446 248838320 281629766
2. Increase in this period -8621524 10035518 1413994
2.1 Outsourcing
2.2 Self cultivation 1413994 1413994
The immature turn to the mature -10035518 10035518
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 24169922 258873838 283043760
Ⅱ Accumulated depreciation
1. Beginning balance 104167783 104167783
2. Increase in this period 8623430 8623430
2.1 Accrual 8623430 8623430
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 112791213 112791213
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance
Ⅳ Book value
1. Ending book value 24169922 146082625 170252547
2. Beginning book value 32791446 144670537 177461983
As at June 30 2024 no ownership of the biological assets was restricted.As at June 30 2024 there was no indication for impairment of biological assets of the Group so no
provision was made.
117Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.14 Right-of-use assets
Unit: yuan
Item Building Land Others Total
Ⅰ Original book value:
1. Beginning balance 80425384 137980409 1697986 220103779
2. Increase in this period 2020302 2020302
3. Decrease in this period 2457813 2457813
4. Ending balance 79987873 137980409 1697986 219666268
Ⅱ Accumulated amortization
1. Beginning balance 41596011 55403469 1358389 98357869
2. Increase in this period 7955532 2898345 169799 11023676
2.1 Accrual 7955532 2898345 169799 11023676
3. Decrease in this period 2457813 2457813
4. Ending balance 47093730 58301814 1528188 106923732
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
4. Ending balance
Ⅳ Book value
1. Ending book value 32894143 79678595 169798 112742536
2. Beginning book value 38829373 82576940 339597 121745910
118Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.15 Intangible assets
7.15.1 Particulars of intangible assets
Unit: yuan
Item Land use right Software use right Trademark Total
Ⅰ Original book value
1. Beginning balance 444520847 102888216 189715738 737124801
2. Increase in this period 660155 244817 226588 1131560
2.1 Acquisition 660155 244817 226588 1131560
2.2 Internal R&D
2.3 Business merger increase
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 445181002 103133033 189942326 738256361
Ⅱ Accumulated amortization
1. Beginning balance 108815810 69678463 16004752 194499025
2. Increase in this period 4471972 3805579 231609 8509160
2.1 Accrual 4471972 3805579 231609 8509160
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 113287782 73484042 16236361 203008185
Ⅲ Impairment provision
1. Beginning balance
2. Increase in this period
2.1 Accrual
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance
Ⅳ Book value
119Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Land use right Software use right Trademark Total
1. Ending book value 331893220 29648991 173705965 535248176
2. Beginning book value 335705037 33209753 173710986 542625776
As at December 31 2023 no ownership of the intangible assets was restricted.
7.15.2 Particulars of land use right of that not receiving the property certificate
Nil
7.16 Goodwill
7.16.1 Original book value of goodwill
Unit: yuan
Increase in this period Decrease in this period
Name of the invested unit or matter forming Beginning Ending
Formed by
goodwill balance Others Disposal Others balance
business mergerEtablissements Roullet Fransac (“Roullet
1311252513112525Fransac”)
Dicot Partners S.L (“Atrio Group”) 92391901 92391901
Indomita Wine Company Chile SpA 6870115 6870115
Kilikanoon Estate Australia 37063130 37063130
Total 149437671 149437671
7.16.2 Provision for impairment of goodwill
Unit: yuan
Name of the invested unit or matter forming Beginning Increase in this period Decrease in this period Ending
goodwill balance Accrual Others Disposal Others balanceEtablissements Roullet Fransac (“RoulletFransac”)
Dicot Partners S.L (“Atrio Group”) 5210925 5210925
Indomita Wine Company Chile SpA
Kilikanoon Estate Australia 37063130 37063130
Total 42274055 42274055
7.17 Long-term unamortized expenses
Unit: yuan
120Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Increase in this Amortization in this
Item Beginning balance Other decreases Ending balance
period period
Land acquisition
4326483873621542528623
fees
Afforestation fees 110315085 4289952 106025133
Renovation costs 146637493 11926605 5050794 153513304
Others 6444691 361155 415666 6390180
Total 306662107 12287760 10492627 308457240
7.18 Deferred income tax assets/liabilities
7.18.1 Un-offset deferred income tax assets
Unit: yuan
Ending Balance Beginning Balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Asset impairment provision 37970686 9798697 41029365 10563366
Unrealized profits from
28452990471132476403653124100913281
inter-company transactions
Deductible loss 299702899 71532349 261937563 61634797
Unpaid bonus 62021830 15505458 138873637 34718409
Dismission welfare 6265119 1566280 8475845 2118961
Deferred income 29292739 6209492 32582734 7021304
Influence of restricted stock
219857515451742176141804370992
incentive plans
Influence of leasing
560352140088708367177094
standards
Total 742329280 181336582 904874815 221518204
7.18.2 Un-offset deferred income tax liabilities
Unit: yuan
Ending Balance Beginning Balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Assets appraisal appreciation in
business combination under 25553660 7397675 26659530 7718480
non-common control
121Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Impact of leasing standards 3664135 931848 3995628 1001249
Total 29217795 8329523 30655158 8719729
7.18.3 Details of unconfirmed deferred income tax assets
Unit: yuan
Item Ending balance Beginning balance
Deductable temporary difference
Deductible loss 466268251 420651124
Total 466268251 420651124
7.18.4 Deductible losses of unconfirmed deferred income tax assets will expire in
Unit: yuan
Year Ending sum Beginning sum Remark
20243617177836171778
20257052851070528510
20266847917168479171
2027128025572128025572
2028117446093117446093
202945617127
Total 466268251 420651124 --
7.19 Other non-current assets
Unit: yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Advance payment
17600001760000
for construction
Total 1760000 1760000
7.20 Assets with restricted ownership or use rights
Unit: yuan
Ending Beginning
Item Book Book Restriction Restriction Book Restriction Restriction
Book value
balance value type state balance type state
122Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Monetary Security Security
7471586 7471586 Pledge 337895 337895 Pledge
capital deposit etc. deposit etc.Fixed Mortgage Mortgage
46653467 33600396 Pledge 46653467 37985117 Pledge
assets loan loan
Accounts Factoring Factoring
56793558 56793558 Pledge 73628265 73628265 Pledge
receivable restricted restricted
Total 110918611 97865540 120619627 111951277
7.21 Short-term loans
7.21.1 Classification of short-term loans
Unit: yuan
Item Ending balance Beginning balance
Mortgage loan 153403322 163103275
Guaranteed loan 2 3 2 7 2 3 2 0
Fiduciary loan 48654201 178605850
Total 202057523 364981445
·As at June 30 2024 EUR mortgage loan was EUR 7412647 (equivalent of RMB 56793558
yuan) (December 31 2023: EUR 9368417 equivalent of RMB 73628264 yuan) of accounts
receivable factoring business handled by Hacienday Vinedos Marques del Atrio S.L.U. (“Atrio”)
with banks including Banco Santander BBVA and CAIXABANK;
·As at June 30 2024 USD mortgage loan was USD 13500000 (equivalent of RMB 96609764
yuan) (December 31 2023: USD 12625000 equivalent of RMB 89475011 yuan) of loans
borrowed by Chile Indomita Wine Group from Banco Scotiabank with the fixed assets as collateral.·On June 30 2024 AUD guaranteed loan (December 31 2023: AUD 4800000 equivalent of
RMB 23272320 yuan) borrowed by Australia Kilikanoon Estate from ANZ Bank has been repaid.
7.22 Accounts payable
7.22.1 List of accounts payable
Unit: yuan
Item Ending balance Beginning balance
123Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Accounts payable for materials etc. 397974969 473352525
Total 397974969 473352525
7.22.2 No significant accounts payable aged more than one year in this year
7.23 Contract liabilities
Unit: yuan
Item Ending balance Beginning balance
Advances from customers 138471595 174757233
Withholding of goods with sales rebate 521616
Total 138471595 175278849
7.24 Employee remunerations payable
7.24.1 List of employee remunerations payable
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
1. Short-term remuneration 176534963 144584655 239758114 81361504
2. Post-employment welfare –
320484265646582684223342909
defined contribution plan
3. Dismission welfare 8475845 1691342 3902068 6265119
4.Other welfare due within one year
Total 185331292 172840655 270502415 87669532
7.24.2 List of short-term remunerations
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
1. Salaries bonuses allowances and 173350251 119089375 214144911 78294715
2su. bSstiadfife sw elfare 1247367 9409212 9211771 1444808
3. Social insurance charges 295016 7771769 8012615 54170
Including: Medical insurance 295016 7118130 7359182 53964
Injury insurance 650794 650588 206
Maternity insurance 2845 2845
4. Housing fund 38582 6407429 6407429 38582
5. Union fee and staff education fee 1603747 1906870 1981388 1529229
6. Short-term compensated absences
7. Short-term profit-sharing plan
124Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Beginning balance Increase in this period Decrease in this period Ending balance
Minus: Those divided into
non-current liabilities
Total 176534963 144584655 239758114 81361504
7.24.3 List of defined contribution plan
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
1. Basic endowment
319251259610162623761342654
insurance
2. Unemployment
1233603642604620255
insurance
3. Enterprise annuity
payment
Total 320484 26564658 26842233 42909
7.24.4 Dismission welfare
Unit: yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Compensation for server of labor
relation
2. Compensation for early retirement 8475845 1691342 3902068 6265119
Total 8475845 1691342 3902068 6265119
7.25 Taxes and dues payable
Unit: yuan
Item Ending balance Beginning balance
Value added tax 21721295 65545854
Consumption tax 20725067 50879210
Corporate income tax 87628791 134574175
Individual income tax 1007144 1414309
Urban maintenance and construction tax 2136859 6787018
Education surcharges 1584093 5072436
Urban land use tax 2270307 1730986
125Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Ending balance Beginning balance
Others 8723568 8719443
Total 145797124 274723431
7.26 Other payables
Unit: yuan
Item Ending balance Beginning balance
Interest payable
Dividends payable 383085
Other payables 353135333 555634336
Total 353518418 555634336
7.26.1 Dividends payable
Unit: yuan
Item Ending balance Beginning balance
Ordinary stock dividends
Preferred stock dividends/sustainable debt
dividends divided into equity instruments
Others 383085
Total 383085
7.26.2 Other payables
7.26.2.1 Other payables listed by nature
Unit: yuan
Item Ending balance Beginning balance
Dealer’s deposit payable 172539878 194060993
Equipment purchase and construction costs payable 11311800 14832439
Transportation charges payable 9225843 22301368
Trademark use fee payable 7858548 27515798
Advertisement expenses payable 10668411 104815517
Employee cash deposit 309282 462672
Supplier’s deposit payable 15585662 18284971
Contracting fees payable 1165170 3360355
Repurchase of treasury stock funds payable 99777462 103411919
Equity payment payable 14623377 14623377
126Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Others 10069900 51964927
Total 353135333 555634336
7.26.2.2 Explanation of large accounts payable aged more than one year
As at June 30 2024 there were no other large accounts payable aged more than one year.
7.27 Non-current liabilities due within one year
Unit: yuan
Item Ending balance Beginning balance
Long-term loans due within one year 57151244 58510868
Bonds payable due within one year
Long-term accounts payable due within
one year
Lease liabilities due within one year 24080511 20013125
Total 81231755 78523993
7.28 Other current liabilities
Item Ending balance Beginning balance
Refund payable 24869246
Unamortized VAT amount 18001307 20089051
Total 18001307 44958297
7.29 Long-term loans
7.29.1 Classification of long-term loans
Unit: yuan
Item Ending balance Beginning balance
Fiduciary loan 93803175 125127311
Minus: Long-term loans due within one
5715124458510868
year
Total 36651931 66616443
As at June 30 2024 fiduciary loans (EUR) were EUR 12243128 (equivalent of RMB 93803175
yuan) (December 31 2023: EUR 15921126 equivalent of RMB 125127311 yuan) borrowed by
Atrio from banks including Banco de Sabadell S.A. Bankia Banco Santander BBVA and Caja
127Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Rural de Navarr.
7.30 Lease Liabilities
Unit: yuan
Item Ending balance Beginning balance
Long-term lease liabilities 92215196 105051460
Minus: Lease liabilities due within one year 24080511 20013125
Total 68134685 85038335
7.31 Deferred income
Unit: yuan
Increase in this Decrease in this
Item Beginning balance Ending balance Forming reason
period period
Governmental
32582734576000386599529292739
subsidy
Total 32582734 576000 3865995 29292739 --
Projects related to governmental subsidy
Unit: yuan
Amount of Amount included Amount Amount
Related to
Beginning subsidy newly in non-operating included in offset the Other Ending
Item of liabilities assets/
balance increased in this revenue in this other cost changes balance
income
period period income in expenses
Industrial development Related to
12300000205000010250000
supporting funds assets
Subsidy for retaining Related to
88353334940008341333
wall assets
Xinjiang industrial
revitalization and Related to
85320007110007821000
technological assets
transformation project
Wine fermentation
Related to
capacity construction 1200000 200000 1000000
assets
(Huanren) project
Special funds for
Related to
efficient water-saving 829000 81000 748000
assets
irrigation project
128Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Amount of Amount included Amount Amount
Related to
Beginning subsidy newly in non-operating included in offset the Other Ending
Item of liabilities assets/
balance increased in this revenue in this other cost changes balance
income
period period income in expenses
Subsidy for economic
and energy-saving Related to
38490064150320750
technological assets
transformation projects
Subsidy for scenic spot Related to
24578412500233284
construction assets
Subsidy for mechanic
Related to
development of Penglai 55717 17345 38372
assets
Daliuhang Base
Jugezhuang government Related to
200000576000236000540000
leisure agriculture subsidy income
Total 32582734 576000 3865995 29292739
7.32 Share capital
Unit: yuan
Increase or decrease (+-) in this period
Ending
Item Beginning balance Newly issued Allocated Share transferred from
Others Subtotal balance
shares shares accumulation fund
Total shares 692249559 692249559
7.33 Capital reserves
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
Capital premium (share capital
6156785322514619517816640806911
premium)
Other capital reserves 35408175 780883 34627292
Total 651086707 25146195 798699 675434203
·During the reporting period the implementation of restricted stock incentive plans resulted in an
increase of RMB 25146195 yuan in capital reserves due to the recognition of amortization
expenses.·Due to the acquisition of a minority equity in Australia Kilikanoon Estate the Company
recognized in the capital reserve the difference between the newly-acquired long-term equity
investment and the net asset share of the subsidiary that shall be continuously calculated from the
date of acquisition based on the newly-increased shareholding ratio resulting in a decrease of RMB
780883 yuan in capital reserve. Please refer to Note 10.2 for details.
129Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
·According to the Plan for Repurchasing Shares of Part of Domestic Listed Foreign Shares
(B-shares) of the Company approved at the first extraordinary general meeting of shareholders in
2024 from January to June 2024 the transaction costs incurred by the Company in repurchasing the
Company’s shares through the dedicated securities account amounted to RMB 17816 yuan
offsetting the capital premium of RMB 17816 yuan.
7.34 Treasury share
Item Beginning balance Increase in this period Decrease in this period Ending balance
Repurchase of B-shares 150932125 150932125
Repurchase of restricted stock 103411919 3419921 99991998
Total 103411919 150932125 3419921 250924123
·The first extraordinary board meeting of 2024 was held on February 22 2024 and the first
extraordinary shareholders’ meeting of 2024 was held on March 11 2024. The Plan for
Repurchasing Shares of Part of Domestic Listed Foreign Shares (B-shares) of the Company was
reviewed and approved. According to the above-mentioned B-share repurchase plan the Company
will implement the repurchase of domestic listed foreign shares (B-shares) through centralized
bidding trading taking into account its own financial and operating conditions with a total
repurchase capital not exceeding RMB 200 million yuan and a repurchase price not exceeding HKD
12.65 per share (as the Company has implemented the 2023 equity distribution the upper limit of
the repurchase price of B-shares through centralized bidding trading has been adjusted from no
more than HKD 12.65 per share (inclusive) to no more than HKD 12.11 per share (inclusive)). The
repurchase period shall not exceed 12 months from the date of approval of share repurchase plan by
the shareholders’ meeting. The number of shares to be repurchased shall not be less than 10 million
shares and shall not exceed 20 million shares. The repurchased shares shall be cancelled and the
registered capital of the Company shall be correspondingly reduced.·As of June 30 2024 the Company has repurchased a total of 16860000 domestic listed foreign
shares (B-shares) through centralized bidding method via a special securities account for share
repurchase accounting for 2.4355378% of the Company’s current total share capital. The highest
transaction price was HKD 10.16 per share the lowest transaction price was HKD 9.26 per share
and the total transaction amount was HKD 162467975.57 (excluding transaction costs) equivalent
to RMB 150932125.·According to the Company’s 2023 profit distribution plan the Company distributes a cash
dividend of 3419921 yuan to restricted stock incentive objects and reduced the amount of treasury
stock by 3419921 yuan in accordance with relevant provisions of Enterprise Accounting
Standards.
7.35 Other comprehensive income
Unit: yuan
Item Beginning Amount incurred in this period Ending
130Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
balance Minus: amount Minus: amount balance
included in
Amount included in
other
other Minus: Attributable Attributable incurred comprehensive
comprehensive income to parent to minority
before income income before
income before
and transferred tax company shareholders tax in this and transferred
to retained expenses after tax after tax
period to profit or loss
earnings in
in this period
this period
1. Other comprehensive income
not to be reclassified into profit
and loss later
Including: Changes after
re-measuring and resetting the
benefit plans
Other comprehensive
income not to be reclassified
into profit and loss under equity
method
Changes in the fair value
of other investments in equity
instruments
Changes in the fair value
of the enterprise’s own credit risk
2. Other comprehensive income
to be reclassified into profit and -14784677 -11182076 -10069669 -1112407 -24854346
loss later
Including: Other comprehensive
income to be reclassified into
profit and loss under equity
method
Changes in the fair value of
other debt investments
Amount of financial assets
reclassified into other
comprehensive income
Provision for credit
impairment of other credit
investments
Provision for cash-flow hedge
Difference in translation of
Foreign Currency Financial -14784677 -11182076 -10069669 -1112407 -24854346
Statement
Total other comprehensive income -14784677 -11182076 -10069669 -1112407 -24854346
131Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.36 Surplus reserves
Unit: yuan
Item Beginning balance Increase in this period Decrease in this period Ending balance
Legal surplus reserves 342732000 342732000
Free surplus reserves
Reserve fund
Enterprise expansion fund
Others
Total 342732000 342732000
7.37 Undistributed profit
Unit: yuan
Item This period Prior period
Undistributed profit at the end of prior period before adjustment 9273629318 9049649211
Total undistributed profit at the beginning of the period before
adjustment (increase listed with+ and decrease listed with -)
Undistributed profit at the beginning of the period after
92736293189049649211
adjustment
Plus: Net profit for owner of the parent company 221177382 532438907
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 345910244 308458800
Common dividend transferred to share capital
Undistributed profit at the end of period 9148896456 9273629318
7.38 Operating income and operating cost
7.38.1 Details of operating income
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 1487897428 583656058 1934472124 796260619
Other businesses 34412008 12092672 32266361 9198773
132Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Total 1522309436 595748730 1966738485 805459392
Including: Income from contracts 1519454062 593381289 1965668542 804756028
Income from house rents 2855374 2367441 1069943 703364
7.38.2 Situation of income from and cost of contracts
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
- Alcoholic beverage 1487897428 583656058
- Others 31556634 9725231
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 1519454062 593381289
7.39 Taxes and surcharges
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 73844921 83799789
Urban maintenance and construction tax 8854663 13221014
Education surcharges 6398857 9591885
Building tax 16684157 17081105
Land use tax 4946440 5443389
Vehicle and vessel use tax 13677 13298
Stamp duty 1928621 2190579
Others 149271 106007
Total 112820607 131447066
7.40 Selling expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Salary and welfare expenses 109157587 133331239
Marketing expenses 108239032 150784963
Labor expenses 14966602 18891110
133Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Depreciation expenses 33555237 31599626
Storage expenses 12833741 13287122
Advertisement expenses 27638002 25707453
Trademark use fees 7858547 11320305
Travel expenses 12764888 12462566
Design & production expenses 2757387 9833969
Conference expenses 3299438 4528120
Water electricity and gas charges 4438730 4658860
Restricted stock incentive plan expenses 17339929
Others 37067395 36596377
Total 391916515 453001710
7.41 Management expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Employee remunerations 32475958 29528907
Depreciation expenses 40527533 46150402
Contracting expenses 2007300 2119800
Repair expenses 2193997 1865967
Office expenses 10921919 10169392
Amortization expenses 7922598 8377335
Afforestation fees 6807871 6950800
Safe production costs 2940546 3124162
Business entertainment expenses 1475072 1373098
Public security & clean-keeping expenses 3208403 3539193
Travel expenses 1527146 1235690
Depreciation and amortization of
42902104510427
right-of-use assets
Restricted stock incentive plan expenses 7806266 671300
Others 8840796 9078922
Total 132945615 128695395
7.42 R&D expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 6748675 6653626
Total 6748675 6653626
134Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.43 Financial expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 9918886 12325532
Minus: Interest income 12390815 9060578
Plus: Commission charges 705999 662758
Exchange gain or loss 4989440 -701279
Total 3223510 3226433
7.44 Other income
Unit: yuan
Source of other income Amount incurred in this period Amount incurred in prior period
Industrial development supporting funds 2050000 2050000
Wine fermentation capacity construction
200000200000
project
Xinjiang industrial revitalization and
711000711000
technological transformation project
Subsidy for retaining wall 494000 319000
Other – related to assets 174996 502740
Special funds for supporting corporate
873210014840000
development
Talent development fund 3650000
Market development and product
155000004300000
development subsidies
Other – related to income 2118544 6048445
Total 33630640 28971185
7.45 Investment income
Unit: yuan
Amount incurred in this Amount incurred in prior
Item
period period
Investment income from long-term equity by equity method -1932092 -932588
Investment income from disposal of long-term equity 16547124
Investment income gained from trading financial assets during the holding
period
Investment income gained from disposal of trading financial assets
135Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Amount incurred in this Amount incurred in prior
Item
period period
Dividend income gained from other equity instruments during the holding
period
Gains generated from the remaining equity re-measured as per fair value
after the loss of control
Interest income gained from equity investment during the holding period
Interest income gained from other equity investments during the holding
period
Investment income gained from disposal of other equity investments
Total -1932092 15614536
7.46 Loss on impairment of credit
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Loss on bad debts of accounts receivable 4083362 -993494
Total 4083362 -993494
7.47 Loss on impairment of assets
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Inventory falling price loss and loss on
-1024683-244434
impairment of contract execution cost
Total -1024683 -244434
7.48 Income from asset disposal
Unit: yuan
Source of income from asset disposal Amount incurred in this period Amount incurred in prior period
Income from disposal of fixed assets 4647 341232
Income from disposal of productive
-639633
biological assets
Total 4647 -298401
7.49 Non-operating income
Unit: yuan
136Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Amount incurred in this Amount incurred in prior Amount included in the current
Item
period period non-recurring profits/losses
Gains on exchange of non-monetary assets
Grains on donations
Governmental subsidy
Gains on scrap of non-current assets 975 975
Others 1676650 1772522 1676650
Total 1677625 1772522 1677625
7.50 Non-operating expenses
Unit: yuan
Amount incurred in Amount incurred Amount included in the current
Item
this period in prior period non-recurring profits/losses
Loss on exchange of non-monetary assets
Donation 350000 900000 350000
Loss on scrap of non-current assets 101292 20717 101292
Fine penalty and overdue fine paid due to violation of
131210104298131210
laws and administrative regulations
Others 29081 1100930 29081
Total 611583 2125945 611583
7.51 Income tax expenses
7.51.1 List of income tax expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Current income tax expenses 52966929 120466280
Deferred income tax expenses 39791416 9884233
Total 92758345 130350513
7.51.2 Adjustment process of accounting profit and income tax expenses
Unit: yuan
Item Amount incurred in this period
Total profit 314733700
Income tax expenses calculated according to the legal/applicable tax rate 78683425
Influence of different tax rates applicable to subsidiary 502595
137Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Amount incurred in this period
Influence of income tax in the term before adjustment 1396038
Influence of nontaxable income
Influence of non-deductible costs expenses and losses 2212619
Influence of deductible loss from use of unconfirmed deferred income tax
-1024750
assets in prior period
Influence of deductible temporary difference or deductible loss of
10988418
unconfirmed deferred income tax assets in this period
Income tax expense 92758345
7.52 Other comprehensive incomes
Refer to Note 7.35 for details.
7.53 Items of cash flow statement
7.53.1 Other cash received related to operating activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 30340645 24849782
Interest income 7777846 8892658
Net amercement income 39759 254866
Others 10735002 13253796
Total 48893252 47251102
7.53.2 Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 239116719 242901628
Administrative expenses 37828283 41163720
Guaranteed deposits paid 6500000
Others 13297751 8743269
Total 296742753 292808617
7.53.3 Other cash received related to investing activities
Unit: yuan
138Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
Net cash received from acquiring subsidiaries 657049
Total 657049
7.53.4 Other cash paid related to financing activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Cash paid for repurchasing B shares 150949941
Cash paid for leasing 14897311 11384300
Cash paid for acquiring minority shareholders’ equity 1883538 14623400
Capital reduction paid to minority shareholders 12000000
Total 167730790 38007700
Changes in various liabilities arising from financing activities
Unit: yuan
Increase in this period Decrease in this period
Beginning Ending
Item Cash Non-cash Cash Non-cash
balance balance
movement movement movement movement
Short-term loans 364981445 221741429 2425452 371150698 15940105 202057523
Long term loans (including long-term
12512731185321908113501622314442293803175
liabilities due within one year)
Lease liab ilit ies (including lease liab ilities due
10505146020610471489731192215196
within one year)
Other payables - dividends payable 346124780 346124780
Other payables - interest payable 13247788 13247788
Other payables - equity payment payable 14623377 14623377
Other payables - accounts payable for
103411919363445799777462
repurchasing treasury shares
Other payables – repurchasing B shares 150949941 150949941
Other payables - return the investment of
18835381883538
minority shareholders
Total 713195512 307063337 516692546 1011755678 22718984 502476733
7.54 Supplementary information to cash flow statement
7.54.1 Supplementary information to cash flow statement
Unit: yuan
Supplementary materials Amount in this period Amount in prior period
1. Cash flows from operating activities calculated by adjusting -- --
139Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Supplementary materials Amount in this period Amount in prior period
the net profit:
Net profit 221975355 350600319
Plus: Provision for impairment of assets -3058679 1237928
Depreciation of fixed assets oil-and-gas assets and
162202787164005102
productive biological assets
Depreciation of right-of-use assets 11023676 11082444
Amortization of intangible assets 8509160 8936336
Amortization of long-term deferred expenses 10492627 9079775
Losses on disposal of fixed assets intangible assets and
-4647298401
other long-term assets (profit listed with “-”)
Losses on retirement of fixed assets (profit listed with
10031720717
“-”)
Losses on fair value change (profit listed with “-”)
Financial costs (profit listed with “-”) 6383382 10419504
Investment losses (profit listed with “-”) 1932092 -15614536
Decrease in deferred income tax assets (increase listed
4018162212217010
with “-”)
Increase of deferred income tax liabilities (decrease
-390206-2332777
listed with “-”)
Decrease in inventories (increase listed with “-”) -121836747 -22578567
Decrease in operating receivables (increase listed with
423502362217964425
“-”)
Increase in operating payable (decrease listed with “-”) -582278932 -218087595
Others 25146195 671300
Net cash flows from operating activities 203880364 527919786
2. Significant investment and financing activities not involving
cash deposit and withdrawal:
Debt transferred into assets
Convertible corporate bond due within one year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent:
Ending balance of cash 1562989249 1423080779
Minus: Beginning balance of cash 1963155752 1612753600
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
140Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Supplementary materials Amount in this period Amount in prior period
Net increase amount of cash and cash equivalent -400166503 -189672821
7.54.2 Composition of cash and cash equivalents
Unit: yuan
Item Ending balance Beginning balance
1. Cash 1562989249 1963155752
Including: Cash on hand 28867 59243
Bank deposits available for payment at any time 1513910104 1423021536
Other monetary funds available for payment at any time 49050278
Deposits with central bank available for payment
2. Cash equivalents
Including: Bond investment due within three months
3. Balance of cash and cash equivalents at the end of period 1562989249 1963155752
7.55 Monetary items of foreign currency
7.55.1 Monetary items of foreign currency
Ending balance at foreign Ending balance at RMB
Item Converted exchange rate
currency equivalent
Monetary capital 47232240
Including: USD 480399 7.1268 3423708
EUR 67 7.6617 513
HKD 48003527 0.9126 43808019
Accounts receivable 49612082
Including: USD 5801250 7.1268 41344349
EUR 303383 7.6617 2324430
CAD 1107 5.2274 5787
GBP 656587 9.0430 5937516
Short-term borrowings 97102650
Including: USD 13625000 7.1268 97102650
EUR
HKD
----
141Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
7.55.2 The Company’s overseas subsidiaries determine their functional currency based on the
currency in the main economic environment in which they operate. The functional currency of Atrio
and Francs Champs Participations SAS (“Farshang Holdings”) is Euro the functional currency of
Chile Indomita Wine Group is Chilean Peso and the functional currency of Australia Kilikanoon
Estate is Australian Dollar.
8. R&D expenditure
Item Amount incurred in this period Amount incurred in prior period
Employee compensation 1743745 1103311
Test and laboratory fees 117777 163766
Consulting fees 1646916 1892504
Consumption of materials 176976 216395
Others 3063261 3277650
Total 6748675 6653626
Including: Expensing research and development expenses 6748675 6653626
Capitalized research and development expenses
9. Change of scope of consolidation
In the reporting period the following new company was included to the consolidation scope of the
Group:
Method of obtaining Business Actual capital
Full name of investee Foundation date Registered capital
equity nature contribution
Ningxia Longyu Food
Establishment May 6 2024 Sales RMB 500000 yuan
Trading Co. Ltd.
10. Equity in other entities
10.1 Equity in subsidiaries
10.1.1 Constitution of enterprise group
Principal Proportion of
Registration Business
Name of subsidiary Registered capital business shareholding Acquisition mode
place nature
location Direct Indirect
142Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Principal Proportion of
Registration Business
Name of subsidiary Registered capital business shareholding Acquisition mode
place nature
location Direct Indirect
Acquired from a
Etablissements Roullet Fransac business combination
EUR2900000 Cognac France Cognac France Trading 100
(“Roullet Fransac”) under non-common
control
Acquired from a
business combination
Dicot Partners S.L (“Dicot”) EUR2000000 Navarre Spain Navarre Spain Sales 90
under non-common
control
Vi?aIndómita
Acquired by
S.A.Vi?aDosAndes S.A. and
CLP31100000000 Santiago Chile Santiago Chile Sales 85 es tablishment or
BodegasSanta Alicia SpA. investment
(“Indomita Wine”)
Acquired from a
Kilikanoon Estate Pty Ltd. Adelaide Adelaide business combination
AUD6420000 Sales 99
(“Australia Kilikanoon Estate”) Australia Australia under non-common
control
Beijing Changyu Sales and Acquired byDistribution Co. Ltd. (“BeijingR MB1000000 Beijing China Beijing China Sales 100 es tablishment orSales”) investment
Yantai Yantai Acquired by
Yantai Kylin Packag ing Co.RMB15410000 Shandong Shandong Manufacturing 100 es tablishment or
Ltd. (“Kylin Packaging”) China China investment
Yantai Chateau Changyu-Castel Yantai Yantai Acquired by
Co. Ltd. (“Chateau Changyu”) USD5000000 Shandong Shandong Manufacturing 70 es tablishment or
(a) China China investment
Acquired by
Changyu (Jingyang) Wine Co. Xianyang Xianyang
RMB1000000 Manufacturing 90 10 establishment or
Ltd. (“Jingyang Wine”) Shaanxi China Shaanxi China investment
Yantai Changyu Pioneer Wine Yantai Yantai Acquired bySales Co. Ltd. (“Sales RMB8000000 Shandong Shandong Sales 100 es tablishment orCompany”) China China investment
Shanghai Changyu Sales and Acquired by
Distribution Co. Ltd. RMB1000000 Shanghai China Shanghai China Sales 100 es tablishment or
(“Shanghai Sales”) investment
Beijing Changyu AFIP
Acquired by
Agriculture development Co. Miyun Beijing Miyun Beijing
RMB1000000 China China Sales 100
establishment orLtd. (“AgricultureinvestmentDevelopment”)
Acquired by
Beijing Chateau Changyu AFIP
RMB642750000 Beijing China Beijing China Manufacturing 91.53 es tablishment or
Global Co. Ltd. (“AFIP”) (b) investment
Yantai Yantai Acquired by
Yantai Changyu Wine Sales Co.RMB5000000 Shandong Shandong Sales 90 10 establishment or
Ltd. (“Wines Sales”)
China China investment
Yantai Changyu Pioneer Yantai Yantai Acquired byInternational Co. Ltd. (“Pioneer RMB5000000 Shandong Shandong Sales 70 30 establishment orInternational”) China China investment
Hangzhou Changyu Wine Sales Acquired by
Hangzhou HangzhouCo. Ltd. (“Hangzhou RMB500000 Sales 100 establishment orZhejiang China Zhejiang ChinaChangyu”) investment
Ningxia Changyu Grape Acquired by
YinchuanGrowing Co. Ltd. (“Ningxia RMB1000000 Ningxia China Ningxia China Planting 100es tablishment orGrowing”) investment
Huanren Changyu National Acquired by
Benxi Benxi
Wines Sales Co. Ltd. RMB2000000 Sales 100 es tablishment or
Liaoning China Liaoning China
(“National Wines”) investment
Liaoning Changyu Golden Acquired by
Benxi Benxi
Icewine Valley Co. Ltd. RMB59687300 Manufacturing 100 es tablishment or Liaoning China Liaoning China
(“Golden Icewine Valley”) investment
Yantai Development Zone Yantai Yantai Acquired by
Changyu Trading Co. Ltd. RMB5000000 Shandong Shandong Sales 100 establishment or
(“Development Zone Trading”) China China investment
Miyun Beijing Miyun Beijing Acquired by
Beijing AFIP Meeting Center RMB500000 China China Services 100 establishment or
143Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Principal Proportion of
Registration Business
Name of subsidiary Registered capital business shareholding Acquisition mode
place nature
location Direct Indirect
(“Meeting Center”) investment
Acquired by
Beijing AFIP Tourism and Miyun Beijing Miyun Beijing
RMB500000 China China Tourism 100 establishment or Culture (“AFIP Tourism”)
investment
Acquired by
Changyu (Ningxia) Wine Co.RMB1000000 Ningxia China Ningxia China Manufacturing 100 es tablishment or
Ltd. (“Ningxia Wine”) investment
Yantai Yantai Acquired by
Yantai Changyu Chateau Tinlot Wholesale and
RMB400000000 Shandong Shandong 65 35 establishment or
Co. Ltd. (“Chateau Tinlot”) retail
China China investment
Xinjiang Chateau Changyu Acquired by
Shihezi Shihezi
Baron Balboa Co. Ltd. RMB550000000 Xinjiang China Xinjiang China Manufacturing 100 es tablishment or
(“Chateau Shihezi”) investment
Ningxia Chateau Changyu Acquired by
Yinchuan YinchuanLongyu Co. Ltd. (“Chateau RMB2000000 Manufacturing 100 es tablishment orNingxia China Ningxia ChinaNingxia”) investment
Acquired by
Shaanxi Chateau Changyu Rena Xianyang Xianyang
RMB20000000 Manufacturing 100 es tablishment or
Co. Ltd. (“Chateau Chang’an”) Shaanxi China Shaanxi China investment
Yantai Changyu Wine Research
Yantai Yantai Acquired by
Development and
RMB500000000 Shandong Shandong Manufacturing 100 es tablishment orManufacturing Co. Ltd. (“R&DChina China investmentCentre”)
Acquired by
Changyu (Huanren) Wine Co. Benxi Benxi
RMB5000000 Manufacturing 100 es tablishment or
Ltd. (“Huanren Wine”) Liaoning China Liaoning China investment
Acquired by
Xin jiang Changyu Sales Co. Shihezi Shihezi
RMB10000000 Sales 100 establishment or
Ltd. (“Xinjiang Sales”) Xinjiang China Xinjiang China
investment
Acquired by
Ningxia Changyu Trading Co. Yinchuan Yinchuan
RMB1000000 Sales 100 establishment or
Ltd. (“Ningxia Trading”) Ningxia China Ningxia China investment
Shaanxi Changyu Rena Wine Acquired by
Xianyang XianyangSales Co. Ltd. (“Shaanxi RMB3000000 Sales 100 establishment orShaanxi China Shaanxi ChinaSales”) investment
Penglai Penglai Acquired by
Penglai Changyu Wine Sales
RMB5000000 Shandong Shandong Sales 100 establishment or
Co. Ltd. (“Penglai Wine”) China China investment
Laizhou Laizhou Acquired by
Laizhou Changyu Wine Sales
RMB1000000 Shandong Shandong Sales 100 establishment or
Co. Ltd. (“Laizhou Sales”)
China China investment
Acquired by
FrancsChampsParticipationsSA Investment and
EUR32000000 Cognac France Cognac France 100 es tablishment or
S (“Francs Champs”) trading investment
Yantai Roullet Fransac Wine Yantai Yantai Acquired bySales Co. Ltd. (“Yantai Roullet RMB1000000 Shandong Shandong Sales 100 establishment orFransac”) China China investment
Yantai Yantai Acquired by
Yantai Changyu Wine Sales Co.RMB5000000 Shandong Shandong Sales 100 es tablishment or
Ltd. (“Wine Sales Company”) China China investment
Shaanxi Chateau Changyu Rena Acquired by
Xianxin XianxinTourism Co. Ltd. (“Chateau RMB1000000 Tourism 100 establishment orShaanxi China Shaanxi ChinaTourism”) investment
Yantai Yantai Acquired by
Longkou Changyu Wine Sales
RMB1000000 Shandong Shandong Sales 100 establishment or
Co. Ltd. (“Longkou Sales”) China China investment
Yantai Changyu Cultural
Yantai Yantai Acquired by
Tourism Development Co. Ltd.RMB10000000 Shandong Shandong Tourism 100 es tablishment or(“Changyu Cultural TourismChina China investmentCompany”)
Yantai Yantai Acquired by
Yantai Changyu Wine Culture
RMB500000 Shandong Shandong Tourism 100 establishment or
Museum Co. Ltd. (“Museum”) China China investment
Yantai Changyu Cultural Yantai Yantai Acquired by
RMB5000000 Tourism 100
Tourism Product Sales Co. Ltd. Shandong Shandong establishment or
144Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Principal Proportion of
Registration Business
Name of subsidiary Registered capital business shareholding Acquisition mode
place nature
location Direct Indirect
(“Cultural Sales”) China China investment
Yantai Changyu Window of Yantai Yantai Acquired by
International Wine City Co. Ltd. RMB60000000 Shandong Shandong Tourism 100 establishment or
(“Window of Wine City”) China China investment
Yantai Yantai Acquired by
Yantai Chateau Koya Brandy
RMB10000000 Shandong Shandong Manufacturing 100 es tablishment or
Co. Ltd. (“Chateau Koya”) China China investment
Changyu (Shanghai)
Acquired by
International Digital Marketing Hongkou HongkouRMB50000000 Shanghai China Shanghai China Sales 100 es tablishment or Center Co. Ltd. (“Dig italinvestmentMarketing”)
Shanghai Changyu Guoqu Acquired by
Hongkou Hongkou
Dig ital Technology Co. Ltd. RMB6000000 establishment or Shanghai China Shanghai China Sales 51
(“Shanghai Guoqu”) investment
Tianjin Changyu Yixin Dig ital Binhai New Binhai New Acquired byTechnology Co. Ltd. (“Tianjin RMB10000000 Area Tianjin Area Tianjin Sales 51 establishment orYixin”) China China investment
Shanghai Changyu Yixin Dig ital Acquired by
Hongkou Hongkou
Technology Co. Ltd. RMB10000000 establishment or Shanghai China Shanghai China Sales 51
(“Shanghai Yixin”) investment
Yantai Yantai Acquired by
Yantai Christon Catering Co.RMB1000000 Shandong Shandong Services 100 establishment or
Ltd. (“Christon Catering”)
China China investment
Weimeisi (Shanghai) Enterprise Acquired by
Development Co. Ltd. RMB10000000 Shanghai China Shanghai China Sales 100 es tablishment or
(“Weimeisi Shanghai”) investment
Acquired by
Ningxia Longyu Food Trading Yinchuan Yinchuan
RMB 500000 Sales 100 establishment or
Co. Ltd. (Longyu Trading) Ningxia China Ningxia China
investment
Explanation for difference between the proportion of shareholding and proportion of voting power
in the subsidiaries:
(a) Chateau Changyu is a Sino-foreign joint venture established by the Group and a foreign
investor accounting for 70% of Changyu Chateau’s equity interest. Through agreement
arrangement the Group has the full power to control Changyu Chateau’s strategic operating
investing and financing policies.(b) AFIP is a limited liability company jointly established by the Group and Yantai De’an and
Beijing Qinglang. In June 2019 Yantai Dean transferred 1.31% of its equity to Yantai Changyu.After the equity change the Group holds 91.53% of its equity. Through agreement arrangement
the Group has the full power to control AFIP’s strategic operating investing and financing
policies. The agreement arrangement will be terminated on September 2 2024.
10.1.2 Important non-wholly-owned subsidiaries
Unit: yuan
Name of subsidiary Shareholding Profit/loss Other Dividend declared Balance of minority
145Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
proportion of attributable to comprehensive to equity at the end of
minority minority income attributable be distributed to period
shareholders shareholders in this to minority minority
period shareholders in this shareholders in
period this period
AFIP 8.47% 56409393
Indomita Wine 15% -79261 -820870 56461307
Explanation for difference between the proportion of shareholding and proportion of voting power
of the minority shareholders in the subsidiaries: See details in Note 10.1.1.
146Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
10.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: yuan
Ending balance Beginning balance
Name of subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
AFIP 264108834 378244258 642353092 23725057 3826256 27551313 268602777 384948572 653551349 26013757 3603886 29617643
Indomita Wine 223976385 314053165 538029550 144464755 9598445 154063200 252718459 314112626 566831085 167265413 9598445 176863858
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Name of subsidiary Operating Total comprehensive Total comprehensive
Net profit Operating cash flow Operating income Net profit Operating cash flow
income income income
AFIP 59439003 -4006527 -4006527 11629017 116672300.80 6010906 6010906 7318097
Indomita Wine 80158645 -528407 -6000876 14619452 76726600 -5893708 893680 13656192
147Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
10.2 Transactions where share of owner’s equities in a subsidiary changes and the subsidiary
is still controlled
10.2.1 Explanation of changes in share of owner’s equities in a subsidiary
This Company has acquired 1.5% of the minority shareholders’ equity in the subsidiary Australia
Kilikanoon Estate in this period with a transfer price of 1883538 yuan. After the completion of
acquisition this Company holds 99% equity in Australia Kilikanoon Estate.
10.2.2 Impact of transactions on minority equity and owner’s equities attributable to the
parent company
Items Australia Kilikanoon Estate
Acquirement cost/disposal consideration
-- Cash 1883538
-- Fair value of non-cash assets
Total acquirement cost/disposal consideration 1883538
Minus: Net asset share of subsidiaries calculated based on the
1102655
proportion of equity acquirement/disposal
Difference 780883
Including: Adjustment of capital reserves 780883
Adjustment of surplus reserves
Adjustment of undistributed profits
10.3 Equity in joint ventures or associates
Summary financial information of unimportant joint ventures and associates
Unit: yuan
Ending balance / amount incurred Beginning balance / amount incurred
in this period in prior period
Joint ventures: -- --
Total book value of investment 35144523 37018893
Total of the following items calculated
according to the shareholding ratio
-- Net profit -1874370 -1124340
-- Other comprehensive income
-- Total comprehensive income -1874370 -1124340
Associates:
Total book value of investment 1209005 1266727
Total of the following items calculated
according to the shareholding ratio
148Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
-- Net profit -57722 191752
-- Other comprehensive income
-- Total comprehensive income -57722 191752
11. Risks related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in the
normal course of the Group’s operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
The following mainly presents information about the Group’s exposure to each of the above
risks and their sources their changes during the year and the Group’s objectives policies and
processes for measuring and managing risks and their changes during the year.The Group aims to seek appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Group’s financial performance. Based on such objectives the Group’s risk
management policies are established to identify and analyze the risks faced by the Group to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities.
11.1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group’s credit risk is primarily
attributable to cash at bank receivables debt investments and derivative financial instruments
entered into for hedging purposes. Exposure to these credit risks are monitored by management
on an ongoing basis.The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.As at June 30 2024 the Group’s maximum exposure to credit risk which will cause a financial
loss to the Group due to failure to discharge an obligation by the counterparties.In order to minimize the credit risk the Group has adopted a policy to ensure that all sales
customers have good credit records. According to the policy of the Group credit review is
required for clients who require credit transactions. In addition the Group continuously
monitors the balance of account receivable to ensure there’s no e xposure to significant bad
149Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
debt risks. For transactions that are not denominated in the functional currency of the relevant
operating unit the Group does not offer credit terms without the specific approval of the
Department of Credit Control in the Group. In addition the Group reviews the recoverable
amount of each individual trade debt at each balance sheet date to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard the management of the
Group considers that the Group's credit risk is significantly reduced.Since the Group trades only with recognized and creditworthy third parties there is no
requirement for collateral. Concentrations of credit risk are managed by customer/counterparty
by geographical region and by industry sector. As at June 30 2024 28.1% of the Group trade
receivables are due from top five customers (December 31 2023: 49%). There is no collateral
or other credit enhancement on the balance of the trade receivables of the Group.
11.2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations tha t
are settled by delivering cash or another financial asset. The Group and its individual
subsidiaries are responsible for their own cash management including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands (subject to approval
by the Group’s board when the borrowings exceed certain predetermined levels). The Group’s
policy is to regularly monitor its liquidity requirements and its compliance with lending
covenants to ensure that it maintains sufficient reserves of cash readily realizable marketable
securities and adequate committed lines of funding from major financial institutions to meet its
liquidity requirements in the short and longer term.
11.3 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 June 30 2024 the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: yuan
June 30 2024 December 31 2023
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 1.75%-2.25% 87200000 1.45% - 2.25% 579200000
Financial liabilities ? ?
- Short-term loans 5.9% - 6.43% -96609764 6.83%~7.30% -96562141
- Long-term loans (including the
3.90%-5.90%-938031751.50%-3.28%-5860499
portion due within one year)
150Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
June 30 2024 December 31 2023
Item
Effective interest rate Amounts Effective interest rate Amounts
- Lease liabilities (including the
4.65%-922151964.65%-105051460
portion due within one year)
Total -195428135 ? 371725900
Variable rate instruments:
Unit: yuan
June 30 2024 December 31 2023
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 0.20% - 1.45% 1572455873 0.20% - 1.61% 1638418696
Financial liabilities
- Short-term loans 1-year LPR-0.005 -100000000
- Short-term loans BBSW (3mths)+1.15% -48654201 1.81% ~ 2.54% -23272320
- Short-term loans 4.35%-5.4% -56793558 3.90% ~ 6.95% -145146984
- Long-term loans (including the
2.00%~7.59%-119266812
portion due within one year)
Total 1467008114 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.As at June 30 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 RMB197175 yuan (2023: RMB 1453823 yuan) and net profit by RMB 197175
yuan (2023: RMB 1453823 yuan).The sensitivity analysis above indicates the instantaneous change in the net profit and equity
that would arise assuming that the change in interest rates had occurred at the balance sheet
date and had been applied to re-measure those financial instruments held by the Group which
expose the Group to fair value interest rate risk at the balance sheet date. In respect of the
exposure to cash flow interest rate risk arising from floating rate non-derivative instruments
held by the Group at the balance sheet date the impact on the net profit and equity is estimated
as an annualized impact on interest expense or income of such a change in interest rates.
11.4 Foreign currency risk
151Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
In respect of cash at bank and on hand accounts receivable and payable short-term loans
denominated in foreign currencies other than the functional currency the Group ensures that its
net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates
when necessary to address short-term imbalances.
(1) As at June 30 2024 the Group’s exposure to currency risk arising from recognised assets
or liabilities denominated in foreign currencies is presented in the following tables. For
presentation purposes the amounts of the exposure are shown in Renminbi translated using
the spot rate at the balance sheet date. Differences resulting from the translation of the
financial statements denominated in foreign currency are excluded.Unit: yuan
June 30 2024 December 31 2023
Item Balance at foreign Balance at RMB Balance at foreign Balance at RMB
currency equivalent currency equivalent
Monetary capital 47232240 2184951
- USD 480399 3423708 308229 2184232
- EUR 67 513 67 523
- HKD 48003527 43808019 217 196
Short-term loans 97102650 96562141
- USD 13625000 97102650 13625000 96562141
(2) Sensitivity analysis
Assuming all other risk variables remained constant a 5% strengthening of the Renminbi
against the US dollar and Euro at June 30 2024 would have impact on the Group’s equity and
net profit by the amount shown below whose effect is in Renminbi and translated using the
spot rate at the year-end date:
Unit: yuan
Item Equity Net profit
June 30 2024
USD 4683947 4683947
EUR -26 -26
HKD -2190401 -2190401
Total 2493520 2493520
December 31 2023
USD 3539172 3539172
EUR -20 -20
HKD -7 -7
Total 3539145 3539145
152Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30 2024
would have had the equal but opposite effect to the amounts shown above on the basis that all
other variables remained constant.
12. Fair value disclosure
All financial assets and financial liabilities held by the Group are carried at amounts not
materially different from their fair value at June 30 2024.
13. Related parties and related transactions
13.1 Particulars of the parent company of the Company
Proportion of Proportion of voting
Name of parent Registration Registered
Business nature shareholding of the parent powers of the parent
company place capital
company in the Company company in the Company
Changyu Group Yantai City Manufacturing industry 50000000 49.9% 49.9%
From January to June 2024 there was no fluctuation in the registered capital of the parent company
and its share in equity interest and voting right.
13.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 10.
13.3 Information about joint ventures and associates of the Company
Other joint ventures and associates that have related party transactions with the Group during this
period or that formed balance when having related party transactions with the Group during the
prior period are as follows:
Name of joint ventures and associates Relationship with the Company
L&M Holdings Joint venture of the Group
Shanghai Yufeng Brand Management Co. Ltd. (“Shanghai Yufeng”) Associates of the Group
Yantai Guolong Wine Industry Co. Ltd. (“Yantai Guolong”) Associates of the Group
13.4 Particulars of other related parties
Relationship between other related parties and the
Name of other related parties
Company
Yantai God Horse Packing Co. Ltd. (“God Horse Packing”) A company controlled by the same parent company
Yantai Zhongya Zhibao Pharmaceutical Co. Ltd. (“Zhongya Zhibao”) Appointment of directors supervisors and senior
153Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Relationship between other related parties and the
Name of other related parties
Company
executives of the Group
Societe Civile Argricole Du Chateau De Mirefleurs (“French Mirefleurs”) Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”) Subsidiaries of the joint venture
13.5 Related transactions
13.5.1 Related transactions of purchasing and selling goods and providing and receiving
services
List of purchasing goods/receiving services
Unit: yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
God Horse Packing Purchasing goods 34253399 40209713
Zhongya Zhibao Purchasing goods 13392 13162
French Mirefleurs Purchasing goods 4472158
List of selling goods/providing services
Unit: yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
Zhongya Zhibao Purchasing goods 2424638 1929485
God Horse Packing Purchasing goods 34593 7414
Shanghai Yufeng Purchasing goods 950113 190498
Yantai Guolong Purchasing goods 12309013
The price of transactions between the Group and the related parties are based on the negotiated
price.
13.5.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
13.5.3 Leasing with related parties
The Group as a lessor:
Unit: yuan
154Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Rental income recognized in Rental income recognized in prior
Name of the lessee Type of leased assets
this period period
God Horse Packing Office building and plant 774705 774705
Zhongya Zhibao Office building 481905 295238
155Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
The Group as a lessee:
Unit: yuan
Rental expenses for
Variable lease payments not
short-term leases and leases
included in the measurement Interest expenses on Right-of-use assets
of low-value assets of Rent paid
of lease liabilities (if lease liabilities assumed increased
simplified treatment (if
applicable)
Name of the lessor Type of leased assets applicable)
Amount Amount Amount Amount
Amount Amount Amount Amount Amount Amount
incurred incurred in incurred incurred
incurred in incurred in incurred in incurred in incurred in incurred in
in this prior in prior in prior
prior period this period prior period this period this period this period
period period period period
Office building plant
Changyu Group 7480362 7480362 490777 1103983
commercial building
156Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
13.5.4 Related guarantee
Nil
13.5.5 Inter-bank borrowing and lending of related parties
Nil
13.5.6 Asset transfer and debt recombination of related parties
Nil
13.5.7 Other related transactions
Unit: yuan
Amount incurred in prior
Related party Item Amount incurred in this period
period
Changyu Group Trademark use fee 7858547 11320305
The price of transactions between the Group and the related parties are based on the
negotiated price.
13.6 Accounts receivable and payable of the related parties
13.6.1 Accounts receivable
Unit: yuan
Ending balance Beginning balance
Item Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
Zhongya Zhibao 2008642 1920 1476262 2670
receivable
Accounts
Shanghai Yufeng 2364318 2260 2925045 5290
receivable
Prepayment French Mirefleurs 2115474 6642165
Prepayment LIVERSAN 478090
13.6.2 Accounts payable
Unit: yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 19592101 27358723
Accounts payable Zhongya Zhibao 2066
Liabilities of contracts Yantai Guolong 930928 14840000
Other payable God Horse Packing 400000
Other payable Changyu Group 7858547 27515798
Other payable Zhongya Zhibao 1664860
157Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
14. Share-based payment
14.1 Overall situation of share-based payment
According to the resolution of 2022 Annual General Meeting of Shareholders held by the
Group on May 26 2023 and the approved Proposal on 2023 Restricted Stock Incentive Plan
(Draft) of the Company and Its Abstract and Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors to Handle Matters Related to 2023
Restricted Stock Incentive Plan of the Company and the Proposal on Adjusting Relevant
Matters of 2023 Restricted Stock Incentive Plan and the Proposal on Granting Restricted
Stocks to Incentive Objects of 2023 Restricted Stock Incentive Plan which were reviewed and
approved at the first 2023 extraordinary board meeting held on June 26 2023 the Group has
determined June 26 2023 as the grant date to grant 6850000 restricted stocks to 204
incentive objects at a grant price of 15.24 yuan per stock. A total of 203 incentive objects in
this Group actually subscribed for 6785559 restricted stocks with a grant price of 15.24
yuan per stock.All restricted stocks granted to incentive objects are subject to different lock-up periods
which are 12 months 24 months and 36 months respectively from the completion of grant
registration of restricted stocks granted to incentive objects. The restricted stocks granted to
incentive objects under this incentive plan shall not be transferred used as collateral or used
to repay debts during the lock-up period. All restricted stocks granted to incentive objects will
be unlocked in three phases after 12 months from the grant date with unlocking ratios of
30% 30% and 40% for each phase. The corresponding unlocking dates are 1 year 2 years
and 3 years from the grant date. The actual unlocking quantity shall be linked to the annual
performance evaluation.When the performance of this Company meets corresponding conditions the unlocking ratio
of the above-mentioned restricted stocks for the current period is determined based on the
operating performance of the incentive object’s unit and the value contribution of the
incentive object. If the unlocking conditions stipulated in this plan are not met the incentive
object shall not unlock restricted stocks in the current period and the Company shall
repurchase them according to the grant price to incentive object.The Group held its fourth 2024 extraordinary board meeting on July 22 2024 and reviewed
and approved the Proposal on Achievement of the First Lifting of Lock-up Period and Lifting
of Lock-up Conditions for Company’s 2023 Restricted Stock Incentive Plan. According to
relevant provisions of Management Measures for Equity Incentives of Listed Companies and
the Company’s 2023 Restricted Stock Incentive Plan (Draft) and 2023 Restricted Stock
Incentive Plan Implementation Assessment and Management Measures the first lifting of
lock-up period and lifting of lock-up conditions for the Company’s 2023 restricted stock
incentive plan have been achieved.The first lifting period of 2023 restricted stock incentive plan is “from the first trading day 12months after the completion of grant registration to the last trading day within 24 monthsfrom the completion of grant registration”. The lifting ratio is 30% of the total number of
restricted stocks granted. The grant registration date of restricted stocks under the Company’s
2023 restricted stock incentive plan is July 20 2023. The first lock-up period expires on July
20 2024 and a total of 172 incentive objects have been lifted from the lock-up conditions.
The number of restricted stocks that can be lifted is 1720495. A total of 425666 restricted
158Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
stocks are repurchased and cancelled including 157790 that no longer meet the conditions of
the Company’s 2023 restricted stock incentive plan and 267876 restricted stocks that cannot
be lifted from the first lock-up period due to personal assessment results.
14.2 Equity-settled share-based payments
Unit: yuan
Method for determining the fair value of equity instruments on
Restricted stock: stock price on grant date minus grant price
grant date
Basis for determining the number of exercisable equity
Management’s best estimate
instruments
Reasons for significant differences between the current
estimate and the prior estimate
Accumulated amount of equity-settled share-based payments
55881950
included in capital reserve
Total amount of expenses recognized as equity-settled
25146195
share-based payments in this period
15. Commitment and contingency
15.1 Significant commitment
Unit: yuan
Item Ending balance Beginning balance
Making long-term asset commitments 47557140 50057140
15.2 Contingency
As of the balance sheet date the Group didn’t have any contingency to be disclosed.
16. Matters after balance sheet
16.1 Important non-adjusting events
On July 22 2024 the board of directors of the Company has reviewed and approved the
Proposal on Achievement of the First Lifting of Lock-up Period and Lifting of Lock-up
Conditions for Company’s 2023 Restricted Stock Incentive Plan as described in Note 14;
and approved the Proposal on Repurchasing and Canceling Some Restricted Stocks in
Company’s 2023 Restricted Stock Incentive Plan and Adjusting Repurchase Price as
well as Proposal on Changing and Revising the Registered Capital. 425666 restricted
stocks were repurchased and cancelled. After the restricted stocks granted to the
incentive objects have completed the share registration the Company implemented the
2023 annual equity distribution. The board of directors has adjusted the repurchase price
of the restricted stocks that have not been lift from 2023 restricted stock incentive plan
according to the provisions of Incentive Plan (Draft). The adjusted repurchase price of
the restricted stocks that have not been lift from 2023 restricted stock incentive plan is
14.74 yuan per share. After the cancellation of the above-mentioned restricted stocks
the Company will change its registered capital. The total share capital of the Company
will be changed from 692249559 shares to 691823893 shares and the registered
159Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
capital will be changed from 692249559 yuan to 691823893 yuan.
17. Other important matters
Nil
18. Notes on major items in financial statements of the parent company
18.1 Accounts receivable
18.1.1 Disclosed by age
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 1261514 5189894
1-2 years
2-3 years
More than 3 years
Total 1261514 5189894
18.1.2 Disclosed by classification of bad debt provision methods
Unit: yuan
Ending balance Beginning balance
Category Book balance Bad-debt provision Book balance Bad-debt provision
Book Book
Proportion value Proportion Amount Proportion Amount Amount Proportion Amount value
of accrual of accrual
Accounts receivable
with bad-debt
provision accrued on
a single item basis
Accounts receivable
with bad-debt
1261514100%12620.10%12602525189894100%5189894
provision accrued on
a combined basis
Total 1261514 100% 1262 0.10% 1260252 5189894 100% 5189894
Particulars of provision for bad debts accrued in this period:
Unit: yuan
Change amount in this period
Beginning
Category Cancelled Withdrawn or Ending balance balance Accrued after
transferred back
verification
Accounts receivable
with bad-debt provision
accrued on a single item
basis
Bad-debt provision 1262 1262
160Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Change amount in this period
Beginning
Category Cancelled
balance Withdrawn or
Ending balance
Accrued after
transferred back
verification
accrued on a combined
basis
Total 1262 1262
18.1.3 Accounts receivable actually cancelled after verification in this period
Nil
18.1.4 Accounts receivable and contract assets collected by borrower of top 5 units
ranked by ending balance
Unit: yuan
Ending balance of
Proportion in the bad-debts provision
Ending balance of Ending Ending balance of total ending balance of accounts
Unit accounts balance of accounts receivable of accounts receivable and
receivable contract assets and contract assets receivable and impairment
contract assets provision of
contract assets
Zhongya Zhibao 1261514 1261514 100% 1262
Total 1261514 1261514 100% 1262
18.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
18.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
18.2 Other receivables
Unit: yuan
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 3447765
Other receivables 503677802 576949997
Total 507125567 576949997
18.2.1 Dividends receivable
Unit: yuan
Item (or the invested unit) Ending balance Beginning balance
Dividends receivable from subsidiaries 3447765
161Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Total 3447765
18.2.2 Other receivables
18.2.2.1 Particulars of other receivables classified by nature
Unit: yuan
Nature Ending balance Beginning balance
Accounts receivable from subsidiaries 500598180 574127885
Others 3079622 2822112
Total 503677802 576949997
18.2.2.2 Disclosed by age
Unit: yuan
Age Ending balance Beginning balance
Within 1 year (including 1 year) 503573330 576845525
1-2 years
2-3 years
More than 3 years 104472 104472
Total 503677802 576949997
18.2.2.3 Provision for bad debts accrued withdrawn or transferred back in this period
The provision for bad debts accrued in this period was RMB 0 yuan; and the provision for
bad debts withdrawn or transferred back in this period was RMB 0 yuan
18.2.2.4 Other accounts receivable actually cancelled after verification in this period
Nil
18.2.2.5 Other accounts receivable collected by borrower of top 5 units ranked by
ending balance
Unit: yuan
Percentage in total Ending balance
Unit Nature of fund Ending balance Age ending balance of other of provision for
accounts receivable bad debts
Accounts receivable
Sales company 269992741 Within 1 year 53.60%
from subsidiaries
Accounts receivable
Atrio Group 125570740 Within 1 year 24.90%
from subsidiaries
Accounts receivable
Kilikanoon Estate 64747026 Within 1 year 12.90%
from subsidiaries
Accounts receivable
Digital marketing 17295547 Within 1 year 3.40%
from subsidiaries
162Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Percentage in total Ending balance
Unit Nature of fund Ending balance Age ending balance of other of provision for
accounts receivable bad debts
Accounts receivable
Pioneer Wine Industry 14190123 Within 1 year 2.80%
from subsidiaries
Total 491796177 97.60%
18.2.2.6 Accounts receivable related to governmental subsidy
Nil
18.2.2.7 Other accounts receivable derecognized due to transfer of financial assets
Nil
18.2.2.8 Other accounts receivable transferred and included in assets and liabilities
Nil
18.3 Long-term equity investment
Unit: yuan
Ending balance Beginning balance
Item
Book balance Impairment Book value Book balance Impairment Book value
provision provision
Investment in subsidiaries 7713682308 42274055 7671408253 7690772693 42274055 7648498638
Investment in associated
enterprises and joint
vTeontatul res 7713682308 42274055 7671408253 7690772693 42274055 7648498638
18.3.1 Investment in subsidiaries
Unit: yuan
Increase and decrease in this period
Beginning Ending
Beginning Provision Ending balance of balance of
Invested unit balance (book Decrease balance (book
impairment Increase in for in Others impairment value) investment impairment value) provision investment provision
accrued
Kylin Packaging 23543435 367372 23910807
Changyu Chateau 29273059 304959 29578018
Pioneer
59346965585966493292
International
Ningxia Growing 36573247 36573247
National Wine 2000000 2000000
Icewine Valley 63431494 244217 63675711
AFIP 588633661 244217 588877878
Sales Company 21259694 11091879 32351573
163Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Increase and decrease in this period
Beginning Ending
Beginning
balance of Provision
Ending
balance of
Invested unit balance (book Decrease Increase in for balance (book impairment impairment
value) in Others
provision investment impairment value) investment provision
accrued
Wine Sales 5333190 833190 6166380
Shanghai
10000001000000
Marketing
Beijing Sales 850000 850000
Jingyang Wine 900000 900000
Ningxia Wine 222309388 222309388
Ningxia Chateau 453747514 284014 454031528
Chateau Tinlot 212039586 212039586
Shihezi Chateau 812303784 284014 812587798
Chang’an
804197217304959804502176
Chateau
R&D Company 3290230714 1324269 3291554983
Huanren Wine 22200000 22200000
Wine Sales
5102210583845160594
Company
Francs Champs 236025404 236025404
Marques del
22793134452109252279313445210925
Atrio
Indomita Wine 274248114 274248114
Australia
Kilikanoon 92212509 37063130 1883538 94096047 37063130
Estate
Digital
11861211861211372242
Marketing
Chateau Koya 110328128 328128 110656256
Weimeisi
79109857910985
(Shanghai)
hangyu Cultural
Tourism 92621574 142004 92763578
Company
Development
8611928130021674194
Zone Trading
Penglai Wine
11043398000441904383
Industry
Longkou Sales 1611286 1261955 2873241
Laizhou Sales 84916 84916 169832
Yantai Roullet
244217244217488434
Fransac
Museum 265162 265162 530324
Window of Wine
470134470134940268
City
164Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Increase and decrease in this period
Beginning Ending
Beginning Provision Ending balance of Decrease balance of Invested unit balance (book
impairment Increase in for
balance (book
in Others impairment value)
provision investment impairment value) investment provision
accrued
AFIP Tourism 162952 162952 325904
Meeting Center 102210 102210 204420
Ningxia Trading 162952 162952 325904
Christon Catering 102210 102210 204420
Total 7648498638 42274055 1883538 21026077 7671408253 42274055
18.4 Operating income and operating cost
18.4.1 Details of operating income
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 170817834 151450042 211221867 173868643
Others businesses 15081702 14656896 30745229 27044675
Total 185899536 166106938 241967096 200913318
Including: Income from contracts 184420307 164861107 240897153 200209954
Income from house
147922912458311069943703364
rents
18.4.2 Situation of income and cost from contracts
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
- Alcoholic beverage 170817834 151450042
- Others 13602473 13411065
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 184420307 164861107
18.5 Investment income
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Income from long-term equity investment by cost method 164552732 178935084
Income from long-term equity investment by equity
54934
method
Investment income from disposal of long-term equity
-29910000
investment
Investment income of the financial assets measured at
their fair values and the variation of which is recorded
into the current profits and losses during the holding
165Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
period
Investment income gained from disposal of the financial
assets measured at their fair values and the variation of
which is recorded into the current profits and losses
Investment income of held-to-maturity investment during
the holding period
Investment income of financial assets held for sale during
the holding period
Investment income gained from disposal of financial
assets held for sale
Gains generated from the remaining equity remeasured as
per fair value after the loss of control
Total 164552732 149080018
19. Supplementary materials
19.1 List of non-current profits/losses in this period
Unit: yuan
Item Amount Remark
Profits/losses on disposal of non-current assets -95670
Governmental subsidy included in the current profits/losses (excluding those closely related to
the enterprise business and enjoyed in accordance with the unified standard quota or ration of 33630640
the state)
Profits/losses on changes of fair value of financial assets and financial liabilities of
non-financial business and profits/losses from disposal of financial assets and financial
liabilities excluding effective hedging operations relevant to the normal business of the
Company
Payment for use of funds by non-financial enterprises included in the current profits/losses
Profits/losses on entrusting other people to make investment or manage assets
Profits/losses on external entrusted loans
Asset impairment provision accrued due to force majeure such as natural disaster
Transfer-back of accounts receivable provision for impairment with single impairment test
Income obtained when the investment cost obtained by the enterprise from subsidiaries
joint-run business and joint venture is less than the fair value of the net identifiable assets
obtained from the invested units when the investment is made
Current net profits/losses on subsidiaries acquired from a business combination under common
control from the beginning to the consolidation date
Profits/losses on exchange of non-monetary assets
Profits/losses on debt restructuring
One-time expenses incurred by enterprises due to the discontinuation of related business
activities such as expenses for resettling employees etc
Influence of the one-time adjustment of the current profits/losses in accordance with tax and
accounting laws and regulations on the current profits/losses
One-time confirmation of share-based payment expenses due to cancellation or modification of
equity incentive plan
For cash-settled share-based payment profits/losses arising from changes in fair value of
employee compensation payable after the exercise date
Profits/losses on fair value changes of investment real estate with fair value mode for follow-up
measurement
166Yantai Changyu Pioneer Wine Co. Ltd. 2024 Semi-annual Report
Item Amount Remark
Profits generated from transactions with unfair transaction price
Profits/losses on contingencies irrelated to the normal business of the Company
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items 1166359
Other profits/losses conforming to the definition of non-recurrent profits/losses
Minus: Influenced amount of income tax 8371006
Influenced amount of minority equity 36823
Total 26293500 --
19.2 Return on net assets and earnings per share
Earnings per share
Weighted average
Profit in reporting period
return on net assets Diluted EPS Basic EPS (yuan/Share)(yuan/Share)）
Net profit attributable to common shareholders of the
Company 2.03% 0.32 0.32
Net profit attributable to common shareholders of the
Company deducting non-recurrent profits/losses 1.79% 0.28 0.28
19.3 Accounting data difference under domestic and foreign accounting standard
19.3.1 Net profits & net assets difference disclosed in the financial report according to
the international accounting standard and Chinese accounting standard
Unit: yuan
Net profits Net assets
Amount incurred in Amount incurred in
Ending balance Beginning balance
this period prior period
In accordance with the
Chinese accounting 221177382 363569436 10583533749 10841500988
standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 221177382 363569436 10583533749 10841500988
standard
Yantai Changyu Pioneer Wine Co. Ltd.Board of Directors
August 22 2024
167
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