2023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Section 10 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.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. June 30 2023 Unit: Yuan
Item Note June 30 2023 December 31 2022
Current assets:
Monetary fund 7.1 1661628793 1651454115
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable 7.2 684245 2712460
Accounts receivable 7.3 210175785 343982985
Receivables financing 7.4 308817929 309329918
Advance payment 7.5 9251401 60415508
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.6 69101039 70542398
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 7.7 2926495444 2903398515
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.8 156044415 185337393
Total current assets 5342199051 5527173292
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.9 38065512 41371385
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.10 21041320 22115318
12023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note June 30 2023 December 31 2022
Fixed assets 7.11 5926395012 6028137972
Construction in progress 7.12 47247490 40934161
Productive biological assets 7.13 177932255 184420741
Oil-and-gas assets
Right-of-use assets 7.14 128804715 139887159
Intangible assets 7.15 551495257 578240846
Development expenditure
Goodwill 7.16 107163616 107163616
Long-term prepaid expenses 7.17 265783428 274699232
Deferred income tax assets 7.18 215145646 227362656
Other non-current assets
Total non-current assets 7479074251 7644333086
Total assets 12821273302 13171506378
Current liabilities:
Short-term loans 7.19 348885834 389378480
Borrowings from the Central Bank
Borrowing funds
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.20 417210497 503323746
Advances from customers
Contract liabilities 7.21 135643228 165727991
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.22 135368771 182951538
Taxes and dues payable 7.23 202463826 239695902
Other payables 7.24 373745618 372608689
Including: Interest payable 88889
Dividends payable 393855 70317
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.25 143764399 144020834
Other current liabilities 7.26 17687656 18945706
Total current liabilities 1774769829 2016652886
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.27 81961226 128112115
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 7.28 94469356 109505093
22023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note June 30 2023 December 31 2022
Long-term accounts payable 7.29 20000000 42000000
Long-term employee remunerations payable
Estimated liabilities
Deferred income 7.30 34530599 38389058
Deferred income tax liabilities 7.18 8934155 11266932
Other non-current liabilities
Total non-current liabilities 239895336 329273198
Total liabilities 2014665165 2345926084
Owner’s equity:
Capital stock 7.31 685464000 685464000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 7.32 524548552 524968760
Minus: Treasury stock
Other comprehensive income 7.33 -11624173 -23760238
Special reserves
Surplus reserves 7.34 342732000 342732000
General risk preparation
Undistributed profit 7.35 9104759847 9049649211
Total owner’s equities attributable to the parent company 10645880226 10579053733
Minority equity 160727911 246526561
Total owner’s equities 10806608137 10825580294
Total liabilities and owner’s equities 12821273302 13171506378
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
2.2 Balance sheet of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: Yuan
Item Note June 30 2023 December 31 2022
Current assets:
Monetary fund 768805339 874241771
Tradable financial assets
Derivative financial assets
Bills receivable 200000
Accounts receivable 17.1 2030036 2301505
Receivables financing 24742972 41061417
Advance payment 364240 3518783
Other receivables 17.2 504925159 720176320
Including: Interest receivable
Dividends receivable 103544695 250000000
Inventories 421364233 335031522
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 13408491 20080844
32023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note June 30 2023 December 31 2022
Total current assets 1735840470 1996412162
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 17.3 7684192789 7705853378
Other investments in equity instruments
Other non-current financial assets
Investment real estate 21041320 22115318
Fixed assets 208383656 216651596
Construction in progress 375969
Productive biological assets 103686699 108370882
Oil and gas assets
Right-of-use assets 39031011 36153799
Intangible assets 73925123 75298044
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred income tax assets 11993062 12120605
Other non-current assets 1894430000 1850200000
Total non-current assets 10036683660 10027139591
Total assets 11772524130 12023551753
Current liabilities:
Short-term loans 100075000 100000000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 70184984 100583550
Advances from customers
Contract liabilities
Employee remunerations payable 61122195 68112832
Taxes and dues payable 4964239 39101259
Other payables 464911457 499751275
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 5850588 5129607
Other current liabilities
Total current liabilities 707108463 812678523
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 39997656 38757167
42023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note June 30 2023 December 31 2022
Long-term accounts payable
Long-term employee remuneration payable
Estimated liabilities
Deferred income 444505 877814
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 40442161 39634981
Total liabilities 747550624 852313504
Owner’s equities:
Capital stock 685464000 685464000
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital surplus 560853535 560182235
Minus: Treasury stock
Other comprehensive income
Special reserves
Surplus reserves 342732000 342732000
Undistributed profit 9435923971 9582860014
Total owner’s equities 11024973506 11171238249
Total liabilities and owner’s equities 11772524130 12023551753
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
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 1966738485 1953092135
Including: Operating income 7.36 1966738485 1953092135
Interest income
Earned premium
Handling fee and commission income
2. Total operating costs 1528483622 1493458867
Including: Operating costs 7.36 805459392 821855466
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
Amortized reinsurance expenditures
Taxes and surcharges 7.37 131447066 114739618
Selling expenses 7.38 453001710 417764419
Administrative expenses 7.39 128695395 127504270
Research and development expenses 7.40 6653626 5509656
52023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note Sum of this period Sum of prior period
Financial expenses 7.41 3226433 6085438
Including: Interest expenses 12325532 11201775
Interest income 9060578 10191697
Plus: Other profit 7.42 28971185 21629245
Investment profit (loss is listed with “-”) 7.43 15614536 -921317
Including: Investment profit for joint-run business
-932588-921317
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 “-”) 7.44 -993494 486076
Asset impairment loss (loss is listed with “-”) 7.45 -244434 1490900
Income from asset disposal (loss is listed with “-”) 7.46 -298401 -8239072
3. Operating profit (loss is listed with “-”) 481304255 474079100
Plus: Non-operating income 7.47 1772522 2448613
Minus: Non-operating expenses 7.48 2125945 1343532
4. Total profits (total loss is listed with “-”) 480950832 475184181
Minus: Income tax expenses 7.49 130350513 128189749
5. Net profit (net loss is listed with “-”) 350600319 346994432
5.1 Classification by operation continuity
5.1.1 Net profit from continuing operation (net loss is
350600319346994432
listed 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
363569436358459603
company
5.2.2 Minority interest income -12969117 -11465171
6. Net after-tax amount of other comprehensive income 7.50 13707142 -7384531
Net after-tax amount of other comprehensive income
12136065-6397496
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
12136065-6397496
profit and loss later
6.2.1 Other comprehensive income to be
reclassified into profit and loss under
62023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note Sum of this period Sum of prior period
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
12136065-6397496
Currency Financial Statement
6.2.7 Other
Net after-tax amount of other comprehensive income
1571077-987035
attributable to minority shareholders
7. Total comprehensive income 364307461 339609901
Attributable to owner of the parent company 375705501 352062107
Attributable to minority shareholders -11398040 -12452206
8. Earnings per share:
8.1 Basic earnings per share 0.53 0.52
8.2 Diluted earnings per share 0.53 0.52
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 17.4 241967096 229587143
Minus: Operating costs 17.4 200913318 193114244
Taxes and surcharges 9139640 14680577
Selling expenses
Administrative expenses 19481354 20654280
Research and development expenses 533807 529139
Financial expenses -753987 -1835540
Including: Interest expenses 2862882 2152536
Interest income 4368355 3670286
Plus: Other profit 774925 893236
Investment profit (loss is listed with “-”) 17.5 149080018 328290041
Including: Investment profit for joint-run
54934-26539
business 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 “-”) -3661
Asset impairment loss (loss is listed with “-”)
Income from asset disposal (loss is listed
-63963330882
with “-”)
72023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note Sum of this period Sum of prior period
2. Operating profit (loss is listed with “-”) 161864613 331658602
Plus: Non-operating income 167110 106249
Minus: Non-operating expenses 914209 325220
3. Total profits (total loss is listed with “-”) 161117514 331439631
Minus: Income tax expenses -405243 2624240
4. Net profit (net loss is listed with “-”) 161522757 328815391
4.1 Net profit from continuing operation (net loss is
161522757328815391
listed with “-”)
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 remeasuring 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 161522757 328815391
7. Earnings per share:
7.1 Basic earnings per share 0.24 0.48
7.2 Diluted earnings per share 0.24 0.48
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
20651052632087979514
services
82023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note Sum of this period Sum of prior period
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 repurchasement business funds
Net cash received for buying and selling securities
Tax refund received 29311454 165095342
Other cash received related to operating activities 7.52 47251102 30136317
Subtotal of cash flows of operating activities 2141667819 2283211173
Cash paid for goods and services 622088864 636965411
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 241778846 266617445
Cash paid for taxes and expenses 457071706 482260853
Other cash paid related to operating activities 7.52 292808617 291093869
Sub-total of cash outflows of operating activities 1613748033 1676937578
Net cash flow from operating activities 527919786 606273595
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 6000000 86000000
Cash received from obtaining investment income
Cash received from obtaining interest income 167919 474434
Cash received from disposal of fixed assets
143100024186808
intangible assets and other long-term assets
Net cash received from disposal of branch and other
7238585
business unit
Other cash received related to investing activities 657049
Subtotal of cash flows of investment activities 15494553 110661242
Cash paid to acquire fixed assets intangible assets
60515887106892064
and other long-term assets
Cash for investment 206000000 86000000
Cash paid for purchasing fixed deposits
Net increase in hypothecated loan
Net cash paid for acquiring branch and other
business unit
92023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Note Sum of this period Sum of prior period
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 266515887 192892064
Net cash flow from investing activities -251021334 -82230822
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 295974371 428548896
Other cash received related to financing activities
Subtotal cash flows of financing activities 309875203 428548896
Cash paid for paying debts 419615315 590123879
Cash paid for distributing dividend and profit or
31986148215360912
paying interest
Including: dividend and profit paid to minority
703171793435
shareholders by branch
Other cash paid related to financing activities 38007700 9765810
Subtotal of cash outflows of financing activities 777484497 615250601
Net cash flow from financing activities -467609294 -186701705
4. Influences of exchange rate fluctuation on cash and
1038021188837
cash equivalents
5. Net Increase in cash and cash equivalents -189672821 337529905
Plus: balance at the beginning of the period of cash
16127536001502327029
and cash equivalents
6. Balance at the end of the period of cash and cash
14230807791839856934
equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
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 services 245770806 264608586
Tax refund received
Other cash received related to operating activities 10820471 53941562
Subtotal of cash flows of operating activities 256591277 318550148
Cash paid for goods and services 204180816 149862593
Cash paid to and on behalf of employees 22218740 28951681
Cash paid for taxes and expenses 43953062 22087575
Other cash paid related to operating activities 76577506 12091557
Sub-total of cash outflows of operating activities 346930124 212993406
Net cash flow from operating activities -90338847 105556742
2. Cash flow from investing activities:
Cash received from disinvestment 27690000
Cash received from withdrawal of fixed deposits 86000000
Cash received from obtaining investment income 325390390 321605820.39
Cash received from obtaining interest income 167919 474433.61
Net cash received from disposal of fixed assets intangible assets 31808
102023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Sum of this period Sum of prior period
and other long-term assets
Net cash received from disposal of branch and other business
unit
Other cash received related to investing activities 302000000
Subtotal of cash flows of investment activities 353248309 710112062
Cash paid to acquiring fixed assets intangible assets and other
38450795975121
long-term assets
Cash for investment 20161100 110000000
Cash paid for purchasing fixed deposits 206000000 86000000
Net cash paid for acquiring branch and other business unit
Other cash paid related to investment activities 44230000 35700000
Subtotal of cash outflows of investment activities 274236179 237675121
Net cash flow from investing activities 79012130 472436941
3. Cash flow from financing activities:
Cash received from acquiring investment 13900832
Cash received from acquiring loans 100000000 100000000
Other cash received related to financing activities
Subtotal cash flows of financing activities 113900832 100000000
Cash paid for debts 100000000 150000000
Cash paid to distribute dividend profit or pay interest 310002967 2387083
Other cash paid related to financing activities 4567148 4517699
Subtotal of cash outflows of financing activities 414570115 156904782
Net cash flow from financing activities -300669283 -56904782
4. Influences of exchange rate fluctuation on cash and cash
equivalents
5. Net Increase in cash and cash equivalents -311996000 521088901
Plus: balance at the beginning of the period of cash and cash
843369997513809440
equivalents
6. Balance at the end of the period of cash and cash equivalents 531373997 1034898341
Legal Representative: Zhou Hongjiang Accounting Supervisor: Jiang Jianxun Accounting Department Manager: Guo Cuimei
112023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
2.7 Consolidated owner’s equity changing list
Unit: Yuan
This period
Owners’ equity of the parent company
Other equity instruments Minority Item Minus: Other Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive Other Subtotal equity
Other reserves reserves reserves preparation profits
stock bonds stock income
equity
1. Balance at the end of last year 685464000 524968760 -23760238 342732000 9049649211 10579053733 246526561 10825580294
Plus: Accounting policies changing
Previous error correction
Business combination under common
control
Other
2. Balance at the beginning of this year 685464000 524968760 -23760238 342732000 9049649211 10579053733 246526561 10825580294
3. Increased or decreased amount in this
period (reducing amount is listed with -420208 12136065 55110636 66826493 -85798650 -18972157
“-”)
3.1 Total comprehensive income 12136065 363569436 375705501 -11398040 364307461
3.2 Owners’ invested and reduced
-420208-420208-74006755-74426963
capital
3.2.1 Owner’ invested common stock -42351486 -42351486
3.2.2 Other equity instrument holders’
invested capital
3.2.3 Amount of shares paid and
671300671300671300
reckoned in owners’ equity
3.2.4 Other -1091508 -1091508 -31655269 -32746777
3.3 Profit distribution -308458800 -308458800 -393855 -308852655
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk preparation
3.3.3 Distribution to owners (or
-308458800-308458800-393855-308852655
shareholders)
3.3.4 Other
122023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
This period
Owners’ equity of the parent company
Item Other equity instruments
Minority
Minus: Other Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive Other Subtotal equity
Other reserves reserves reserves preparation profits equity
stock bonds stock income
3.4 Internal transfer of owners’ equity
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 variation
3.4.5 Retained earnings carried over
from other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685464000 524548552 -11624173 342732000 9104759847 10645880226 160727911 10806608137
Unit: Yuan
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
Other reserves reserves reserves preparation profits
stock income equity stock bonds
1. Balance at the end of last year 685464000 524968760 -34707177 342732000 8929426600 10447884183 244792421 10692676604
Plus: Accounting policies changing
Previous error correction
Business combination under common
control
Other
2. Balance at the beginning of this year 685464000 524968760 -34707177 342732000 8929426600 10447884183 244792421 10692676604
132023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
Other reserves reserves reserves preparation profits equity
stock bonds stock income
3. Increased or decreased amount in this
period (reducing amount is listed with 10946939 120222611 131169550 1734140 132903690
“-”)
3.1 Total comprehensive income 10946939 428681411 439628350 4002909 443631259
3.2 Owners’ invested and reduced
capital
3.2.1 Owner’ invested common stock
3.2.2 Other equity instrument holders’
invested capital
3.2.3 Amount of shares paid and
reckoned in owners’ equity
3.2.4 Other
3.3 Profit distribution -308458800 -308458800 -2268769 -310727569
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk preparation
3.3.3 Distribution to owners (or
-308458800-308458800-2268769-310727569
shareholders)
3.3.4 Other
3.4 Internal transfer of owners’ equity
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
142023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Last period
Owners’ equity of the parent company
Minority
Item Other equity instruments Minus: Other Other Subtotal Total owners’
Capital Special Surplus General risk Undistributed shareholders’
Capital stock Preferred Perpetual Treasury comprehensive equity
Other reserves reserves reserves preparation profits
stock bonds stock income
equity
3.4.6 Other
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Other
4. Balance at the end of this period 685464000 524968760 -23760238 342732000 9049649211 10579053733 246526561 10825580294
2.8 Owner’s equity changing list of the parent company
Unit: Yuan
This period
Other equity instruments
Item Minus: Other Capital Special Surplus Undistributed Total owners’
Capital stock Preferred Perpetual Treasury comprehensive Other
Other reserves reserves reserves profits equity
stock bonds stock income
1. Balance at the end of last year 685464000 560182235 342732000 9582860014 11171238249
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685464000 560182235 342732000 9582860014 11171238249
3. Increased or decreased amount in this
period (reducing amount is listed with 671300 -146936043 -146264743
“-”)
3.1 Total comprehensive income 161522757 161522757
3.2 Owners’ invested and reduced capital 671300 671300
3.2.1 Owners’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and 671300 671300
152023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
This period
Other equity instruments
Item Minus: Other Capital Special Surplus Undistributed Total owners’
Capital stock Preferred Perpetual Treasury comprehensive Other
Other reserves reserves reserves profits equity
stock bonds stock income
reckoned in owners’ equity
3.2.4 Other
3.3 Profit distribution -308458800 -308458800
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
-308458800-308458800
shareholders)
3.3.3 Other
3.4 Internal transfer of owners’ equity
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 Other
4. Balance at the end of this period 685464000 560853535 342732000 9435923971 11024973506
162023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Unit: Yuan
Last period
Item Other equity instruments Minus: Other Capital Special Surplus Undistributed Total owners’
Capital stock comprehensive Other Preferred Perpetual Treasury
Other reserves reserves reserves profits equity
stock bonds stock income
1. Balance at the end of last year 685464000 560182235 342732000 9141561665 10729939900
Plus: Accounting policies changing
Previous error correction
Other
2. Balance at the beginning of this year 685464000 560182235 342732000 9141561665 10729939900
3. Increased or decreased amount in this
441298349441298349
period (reducing amount is listed with “-”)
3.1 Total comprehensive income 749757149 749757149
3.2 Owners’ invested and reduced capital
3.2.1 Owners’ invested common stock
3.2.2 Other equity instrument holder’
invested capital
3.2.3 Amount of shares paid and reckoned
in owners’ equity
3.2.4 Other
3.3 Profit distribution -308458800 -308458800
3.3.1 Drew surplus reserves
3.3.2 Distribution to owners (or
-308458800-308458800
shareholders)
3.3.3 Other
3.4 Internal transfer of owners’ equity
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
172023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Last period
Item Other equity instruments Minus: Other Capital Special Surplus Undistributed Total owners’
Capital stock Perpetual Treasury comprehensive Other Preferred
Other reserves reserves reserves profits equity
stock bonds stock income
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 Other
4. Balance at the end of this period 685464000 560182235 342732000 9582860014 11171238249
182023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 2023 the Company issued 685464000 shares accumulatively. Refer to Note
7.31 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 Co. Ltd. ILLVA Saronno Holding Spa International Finance Corporation and Yantai
Yuhua Investment & Development Co. Ltd.The financial statement and the consolidated financial statement of the Company were
approved by the Board of Directors on August 29 2023.The details of scope of the consolidated financial statement in this period can be seen in Note
8 “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
2023 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 2023 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 2023.
192023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 Accounting treatment method for business combination under common control and
non-common control
5.5.1 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
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.
5.5.2 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)
202023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
liabilities incurred or assumed and the equity securities issued on the acquisition date in
exchange for the control over the acquiree deducts 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. 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 remeasures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognises any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. In addition any amount recognised in other comprehensive income that may be
reclassified to profit or loss in prior reporting periods relating to the previously-held equity
interest and any other changes in the owners’ equity under equity accounting are transferred
to investment income in the period in which the acquisition occurs. If equity interests of the
acquiree held before acquisition-date were equity instrument investments measured at fair
value through other comprehensive income other comprehensive income recognised shall be
moved to retained earnings on acquisition-date.
5.6 Compiling methods of consolidated financial statement
5.6.1 General principles
The scope of consolidated financial statements is based on control and the consolidated
financial statements comprise the Company and its subsidiaries. Control exists when the
investor has all of following: power over the investee; exposure or rights to variable returns
from its involvement with the investee and has the ability to affect those returns through its
power over the investee. When assessing whether the Group has power only substantive
rights (held by the Group and other parties) are considered. The financial position financial
performance and cash flows of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.Non-controlling interests are presented separately in the consolidated balance sheet within
shareholders’ equity. Net profit or loss attributable to non-controlling shareholders is
presented separately in the consolidated income statement below the net profit line item. Total
comprehensive income attributable to non-controlling shareholders is presented separately in
the consolidated income statement below the total comprehensive income line item.When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the opening
owners’ equity of the subsidiary the excess is still allocated against the non-controlling
interests.When the accounting period or accounting policies of a subsidiary are different from those of
the Company the Company makes necessary adjustments to the financial statements of the
subsidiary based on the Company’s own accounting period or accounting policies. Intra-group
balances and transactions and any unrealised profit or loss arising from intra-group
212023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
transactions are eliminated when preparing the consolidated financial statements. Unrealised
losses resulting from intra-group transactions are eliminated in the same way as unrealised
gains unless they represent impairment losses that are recognised in the financial statements.
5.6.2 Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period through a business combination
involving entities under common control the financial statements of the subsidiary are
included in the consolidated financial statements based on the carrying amounts of the assets
and liabilities of the subsidiary in the financial statements of the ultimate controlling party as
if the combination had occurred at the date that the ultimate controlling party first obtained
control. The opening balances and the comparative figures of the consolidated financial
statements are also restated.Where a subsidiary was acquired during the reporting period through a business combination
involving entities not under common control the identifiable assets and liabilities of the
acquired subsidiaries are included in the scope of consolidation from the date that control
commences based on the fair value of those identifiable assets and liabilities at the
acquisition date.
5.6.3 Disposal of subsidiaries
When the Group loses control over a subsidiary any resulting disposal gains or losses are
recognised as investment income for the current period. The remaining equity investment is
re-measured at its fair value at the date when control is lost any resulting gains or losses are
also recognised as investment income for the current period.When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;
- one arrangement considered on its own is not economically justified but it is
economically justified when considered together with other arrangements.If each of the multiple transactions does not form part of a bundled transaction the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in subsidiaries
where control is retained.If each of the multiple transactions forms part of a bundled transaction which eventually
results in the loss of control in the subsidiary these multiple transactions are accounted for as
a single transaction. In the consolidated financial statements the difference between the
consideration received and the corresponding proportion of the subsidiary’s net assets
(calculated continuously from the acquisition date) in each transaction prior to the loss of
222023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
control shall be recognised in other comprehensive income and transferred to profit or loss
when the parent eventually loses control of the subsidiary.
5.6.4 Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without a change in control
the difference between the proportion interests of the subsidiary’s net assets being acquired or
disposed and the amount of the consideration paid or received is adjusted to the capital
reserve (share premium) in the consolidated balance sheet with any excess adjusted to
retained earnings.
5.7 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand demand deposit and short-term highly
liquid investments which are readily convertible into known amount of cash with an
insignificant risk of changes in value.
5.8 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
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognised in profit or loss unless they arise from the re-translation of the principal and
interest of specific borrowings for the acquisition and construction of qualifying assets.Non-monetary items that are measured at historical cost in foreign currencies are translated to
Renminbi using the exchange rate at the transaction date.In translating the financial statements of a foreign operation assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items excluding retained earnings and the translation differences in other
comprehensive income are translated to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses in the income statement are translated to Renminbi at
the spot exchange rates at the transaction dates. The resulting translation differences are
recognised in other comprehensive income. The translation differences accumulated in other
comprehensive income with respect to a foreign operation are transferred to profit or loss in
the period when the foreign operation is disposed.
5.9 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.
5.9.1 Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognised in the balance sheet when the Group
232023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 directly 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.
5.9.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which a
financial asset is managed and its contractual cash flow characteristics. On initial recognition
a financial asset is classified as measured at amortised cost at fair value through other
comprehensive income (“FVOCI”) or at fair value through profit or loss (“FVTPL”).Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets in which case all affected financial
assets are reclassified on the first day of the first reporting period following the change in the
business model.A financial asset is measured at amortised cost if it meets both of the following conditions and
is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.A debt investment is measured at FVOCI if it meets both of the following conditions and is
not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.On initial recognition of an equity investment that is not held for trading the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an investment-by-investment basis. The
instrument meets the definition of equity from the perspective of the issuer.All financial assets not classified as measured at amortised cost or FVOCI as described above
242023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
are measured at FVTPL. On initial recognition the Group may irrevocably designate a
financial asset that otherwise meets the requirements to be measured at amortised cost or at
FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.The business model refers to how the Group manages its financial assets in order to generate
cash flows. That is the Group’s business model determines whether cash flows will result
from collecting contractual cash flows selling financial assets or both. The Group determines
the business model for managing the financial assets according to the facts and based on the
specific business objective for managing the financial assets determined by the Group’s key
management personnel.In assessing whether the contractual cash flows are solely payments of principal and interest
the Group considers the contractual terms of the instrument. For the purposes of this
assessment ‘principal’ is defined as the fair value of the financial asset on initial recognition.‘Interest’ is defined as consideration for the time value of money and for the credit risk
associated with the principal amount outstanding during a particular period of time and for
other basic lending risks and costs as well as a profit margin. The Group also assesses
whether the financial asset contains a contractual term that could change the timing or amount
of contractual cash flows such that it would not meet this condition.(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses including
any interest or dividend income are recognised in profit or loss unless the financial assets are
part of a hedging relationship.- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method.A gain or loss on a financial asset that is measured at amortised cost and is not part of a
hedging relationship shall be recognised in profit or loss when the financial asset is
derecognized and reclassified through the amortisation process or in order to recognise
impairment gains or losses.- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the
effective interest method impairment and foreign exchange gains and losses are recognised in
profit or loss. Other net gains and losses are recognised in other comprehensive income. On
derecognition gains and losses accumulated in other comprehensive income are reclassified
to profit or loss.- Equity investments at FVOCI
252023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
These assets are subsequently measured at fair value. Dividends are recognised as income in
profit or loss. Other net gains and losses are recognised in other comprehensive income. On
derecognition gains and losses accumulated in other comprehensive income are reclassified
to retained earnings.
5.9.3 Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost by the Group.- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses including any interest expense are recognised in profit or loss unless the financial
liabilities are part of a hedging relationship.- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective
interest method.
5.9.4 Offsetting
Financial assets and financial liabilities are generally presented separately in the balance sheet
and are not offset. However a financial asset and a financial liability are offset and the net
amount is presented in the balance sheet when both of the following conditions are satisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；
- The Group intends either to settle on a net basis or to realise the financial asset and settle
the financial liability simultaneously.
5.9.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or；
- the financial asset has been transferred although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset it does not retain
control over the transferred asset.Where a transfer of a financial asset in its entirety meets the criteria for derecognition the
difference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
262023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
derecognition;
- the sum of the consideration received from the transfer and when the transferred
financial asset is a debt investment at FVOCI any cumulative gain or loss that has been
recognised directly in other comprehensive income for the part derecognised.The Group derecognises a financial liability (or part of it) only when its contractual obligation (or part
of it) is extinguished.
5.9.6 Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- financial investments at fair value through other comprehensive income
Financial assets measured at fair value including debt investments or equity securities at
FVPL equity securities designated at FVOCI and derivative financial assets are not subject
to the ECL assessment.Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity
in accordance with the contract and the cash flows that the Group expects to receive).The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 months after the balance sheet date (or a shorter period if the expected life of the
instrument is less than 12 months).For accounts receivable 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 accounts receivable 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 recognises a loss allowance equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
- If the credit risk on a financial instrument has not increased significantly since initial
272023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
recognition.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
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 amortised
cost and debt investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’
when one or more events that have a detrimental impact on the estimated future cash flows of
the financial asset have occurred. Evidence that a financial asset is credit-impaired includes
the following observable data:
282023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty the
Group having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for that financial asset because of financial
difficulties.Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is recognised
as an impairment gain or loss in profit or loss. The Group recognises an impairment gain or
loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account except for debt investments that are measured at FVOCI
for which the loss allowance is recognised in other comprehensive income.Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of
amounts due.Subsequent recoveries of an asset that was previously written off are recognised as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
5.9.7 Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is
recognised 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.
5.10 Inventories
5.10.1 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
292023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
and condition. In addition to the purchase cost of raw materials work in progress and finished
goods include direct labour costs and an appropriate allocation of production overheads.Agricultural products harvested are reported in accordance with the Accounting Standard for
Business Enterprises No. 1 - Inventories.
5.10.2 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 amortised when
they are used. The amortisation charge is included in the cost of the related assets or
recognised in profit or loss for the current period.
5.10.3 Basis for determining the net realisable value and method for provision for
obsolete inventories
At the balance sheet date inventories are carried at the lower of cost and net realisable value.Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and relevant
taxes. The net realisable value of materials held for use in the production is measured based
on the net realisable value of the finished goods in which they will be incorporated. The net
realisable 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 realisable value of each item of inventories is recognised
as a provision for impairment and is recognised in profit or loss.
5.10.4 Inventory count system
The Group maintains a perpetual inventory system.
5.11 Long-term equity investments
5.11.1 Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combination
involving entities under common control is the Company’s share of the carrying amount of
the subsidiary’s equity in the consolidated financial statements of the ultimate controlling
party at the combination date. The difference between the initial investment cost and the
carrying amount of the consideration given is adjusted to the share premium in the capital
reserve with any excess adjusted to 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
302023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 recognised at the amount of cash paid if the Group acquires the investment by cash
or at the fair value of the equity securities issued if an investment is acquired by issuing
equity securities.
5.11.2 Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements long-term equity investments in subsidiaries
are accounted for using the cost method unless the investment is classified as held for sale.Except for cash dividends or profit distributions declared but not yet distributed that have
been included in the price or consideration paid in obtaining the investments the Company
recognises its share of the cash dividends or profit distributions declared by the investee as
investment income for the current period.The investments in subsidiaries are stated in the balance sheet at cost less accumulated
impairment losses.For the impairment of the investments in subsidiaries refer to Note 5.20.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.
312023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 is
initially recognised at cost. Where the initial investment cost is less than the Group’s interest
in the fair value of the investee’s identifiable net assets at the date of acquisition the
investment is initially recognised at the investor’s share of the fair value of the investee’s
identifiable net assets and the difference is recognised in profit or loss.- After the acquisition of the investment in joint ventures and associates the Group
recognises its share of the investee’s profit or loss and other comprehensive income as
investment income or losses and other comprehensive income respectively and adjusts the
carrying amount of the investment accordingly. Once the investee declares any cash dividends
or profit distributions the carrying amount of the investment is reduced by the amount
attributable to the Group. Changes in the Group’s share of the investee’s owners’ equity other
than those arising from the investee’s net profit or loss other comprehensive income or profit
distribution (referred to as “other changes in owners’ equity”) is recognised directly in the
Group’s equity and the carrying amount of the investment is adjusted accordingly.- In calculating its share of the investee’s net profits or losses other comprehensive income
and other changes in owners’ equity the Group recognises investment income and other
comprehensive income after making appropriate adjustments to align the accounting policies
or accounting periods with those of the Group based on the fair value of the investee’s
identifiable net assets at the date of acquisition. Unrealised profits and losses resulting from
transactions between the Group and its associates or joint ventures are eliminated to the extent
of the Group’s interest in the associates or joint ventures. Unrealised losses resulting from
transactions between the Group and its associates or joint ventures are eliminated in the same
way as unrealised gains but only to the extent that there is no impairment.- The Group discontinues recognising its share of further losses of the investee after the
carrying amount of the long-term equity investment and any long-term interest that in
substance forms part of the Group’s net investment in the associate is reduced to zero except
to the extent that the Group has an obligation to assume additional losses. If the joint venture
or the associate subsequently reports net profits the Group resumes recognising its share of
those profits only after its share of the profits equals the share of losses not recognised.For the impairment of the investments in joint ventures and associates refer to Note 5.20.
5.11.3 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.
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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.
5.12 Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost model and
stated in the balance sheet at cost less accumulated depreciation amortisation and impairment
losses and adopts a depreciation or amortisation policy for the investment property which is
consistent with that for buildings or land use rights unless the investment property is
classified as held for sale. For the impairment of the investment properties refer to Note 5.20.Estimated useful life Residual value Annual depreciation
Category
(years) rate (%) rate (%)
Plant and buildings 20-40 years 0 - 5% 2.4%-5.0%
5.13 Fixed assets
5.13.1 Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods
supply of services for rental or for administrative purposes with useful lives over one
accounting year.The cost of a purchased fixed asset comprises the purchase price related taxes and any
directly attributable expenditure for bringing the asset to working condition for its intended
use. The cost of self-constructed assets is measured in accordance with the policy set out in
Note 5.14.Where the parts of an item of fixed assets have different useful lives or provide benefits to the
Group in a different pattern thus necessitating use of different depreciation rates or methods
each part is recognised as a separate fixed asset.Any subsequent costs including the cost of replacing part of an item of fixed assets are
recognised as assets when it is probable that the economic benefits associated with the costs
will flow to the Group and the carrying amount of the replaced part is derecognised. The
costs of the day-to-day maintenance of fixed assets are recognised in profit or loss as incurred.
332023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
5.13.2 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 estimated useful lives residual value rates and annual depreciation rates of each class of
fixed assets are as follows:
Estimated useful Residual value Annual depreciation
Class
life (years) rate (%) rate (%)
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.
5.13.3 For the impairment of the fixed assets refer to Note 5.20.
5.13.4 Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.Gains or losses arising from the retirement or disposal of an item of fixed asset are determined
as the difference between the net disposal proceeds and the carrying amount of the item and
are recognised in profit or loss on the date of retirement or disposal.
5.14 Construction in progress
The cost of self-constructed assets includes the cost of materials direct labour capitalised
borrowing costs and any other costs directly attributable to bringing the asset to working
condition for its intended use.A self-constructed asset is classified as construction in progress and transferred to fixed asset
when it is ready for its intended use. No depreciation is provided against construction in
progress.Construction in progress is stated in the balance sheet at cost less accumulated impairment
losses (see Note 5.20).
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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
5.15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction or
production of a qualifying asset are capitalised as part of the cost of the asset. Other
borrowing costs are recognised as financial expenses when incurred.During the capitalisation period the amount of interest (including amortisation of any
discount or premium on borrowing) to be capitalised in each accounting period is determined
as follows:
- Where funds are borrowed specifically for the acquisition and construction or production
of a qualifying asset the amount of interest to be capitalised is the interest expense calculated
using effective interest rates during the period less any interest income earned from depositing
the borrowed funds or any investment income on the temporary investment of those funds
before being used on the asset.- To the extent that the Group borrows funds generally and uses them for the acquisition
and construction or production of a qualifying asset the amount of borrowing costs eligible
for capitalisation is determined by applying a capitalisation rate to the weighted average of the
excess amounts of cumulative expenditure on the asset over the above amounts of specific
borrowings. The capitalisation rate is the weighted average of the interest rates applicable to
the general-purpose borrowings.The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or when appropriate a shorter period to
the initially recognised amount of the borrowings.During the capitalisation period exchange differences related to the principal and interest on a
specific-purpose borrowing denominated in foreign currency are capitalised as part of the cost
of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognised as a
financial expense when incurred.The capitalisation period is the period from the date of commencement of capitalisation of
borrowing costs to the date of cessation of capitalisation excluding any period over which
capitalisation is suspended. Capitalisation of borrowing costs commences when expenditure
for the asset is being incurred borrowing costs are being incurred and activities of acquisition
construction or production that are necessary to prepare the asset for its intended use are in
progress and ceases when the assets become ready for their intended use. Capitalisation of
borrowing costs should cease when the qualifying asset being constructed or produced has
reached its expected usable or saleable condition. Capitalisation of borrowing costs is
352023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
suspended when the acquisition construction or production activities are interrupted
abnormally for a period of more than three months.
5.16 Biological assets
The biological assets of the Group are productive biological assets.Productive biological assets are those that are 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 directly attributable expenditure incurred
before satisfying the expected production and operating purpose including capitalised
borrowing costs.Productive biological assets after reaching the expected production and operating purpose
are depreciated using the straight-line method over its estimated useful life. The estimated
useful lives estimated net residual value rates and annual depreciation rates of productive
biological assets are as follows:
Category Useful life (years) Estimated net residual rate (%) Annual depreciation rate (%)
Vines 20 years 0% 5.0%
The Group evaluates the useful life and expected net salvage value by considering the normal
producing life of the 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 recognised in profit or loss for the period in which it arises.
5.17 Intangible assets
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 5.20). For an intangible
asset with finite useful life its cost estimated less residual value and accumulated impairment
losses is amortised on the straight-line method over its estimated useful life unless the
intangible asset is classified as held for sale.The respective amortisation periods for intangible assets are as follows:
Item Amortisation period (years)
Land use rights 40-50 years
Software licenses 5-10 years
Trademark 10 years
362023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
An intangible asset is regarded as having an indefinite useful life and is not amortised when
there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group. At the balance sheet date the Group had intangible assets
with infinite useful lives including the land use rights and trademarks. Land use rights with
infinite useful lives are permanent land use rights with permanent ownership held by the
Group under the relevant Chile and Australian laws arising from the Group’s acquisition of
Vi?a Indómita S.A. Vi?a Dos Andes S.A. and Bodegas Santa Alicia SpA. (collectively
referred to as the “Chile Indomita Wine Group”) and the acquisition of Kilikanoon Estate Pty
Ltd (hereinafter referred to as the “Australia Kilikanoon Estate”) therefore there was no
amortisation. The right to use trademark refers to the trademark held by the Group arising
from the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate
with infinite useful lives. The valuation of trademark was based on the trends in the market
and competitive environment product cycle and managing long-term development strategy.Those 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.
5.18 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note 5.20). 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.
5.19 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefit
period. The respective amortisation periods for such expenses are as follows:
Item Amortisation period
Land requisition fee 50 years
Land lease fee 50 years
Greening fee 5-20 years
Renovation fee 3-5 years
Others 3 years
5.20 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
372023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
- 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.An impairment loss is recognised in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognised
accordingly. Impairment losses related to an asset group or a set of asset groups are allocated
first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset
groups and then to reduce the carrying amount of the other assets in the asset group or set of
asset groups on a pro rata basis. However such allocation would not reduce the carrying
amount of an asset below the highest of its fair value less costs to sell (if measurable) its
present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognised it is not reversed in a subsequent period.
5.21 Fair value measurement
Unless otherwise specified the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.When measuring fair value the Group takes into account the characteristics of the particular
asset or liability (including the condition and location of the asset and restrictions if any on
the sale or use of the asset) that market participants would consider when pricing the asset or
382023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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.
5.22 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
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:
392023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
- 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;
- 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:
402023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 and signed by
the customer shall be recognized as the confirming point of the sales revenue.
5.23 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 contracts 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
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.
5.24 Employee benefits
5.24.1 Short-term employee benefits
412023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Employee wages or salaries bonuses social security contributions such as medical insurance
work injury insurance maternity insurance and housing fund measured at the amount
incurred or accured at the applicable benchmarks and rates are recognised as a liability as the
employee provides services with a corresponding charge to profit or loss or included in the
cost of assets where appropriate.
5.24.2 Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China the Group
participated in a defined contribution basic pension insurance plan in the social insurance
system established and managed by government organisations. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks and rates
stipulated by the government. Basic pension insurance contributions payable are recognised
as a liability as the employee provides services with a corresponding charge to profit or loss
or included in the cost of assets where appropriate.
5.24.3 Termination benefits
When the Group terminates the employment with employees before the employment contracts
expire or provides compensation under an offer to encourage employees to accept voluntary
redundancy a provision is recognised with a corresponding expense in profit or loss at the
earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of
an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carry out
the restructuring by starting to implement that plan or announcing its main features to those
affected by it.
5.25 Share-based payment
Share-based payment of this Group are transactions in which the Group grants equity
instruments or undertakes equity-instrument-based liabilities in return for services from
employees. The Group’s share-based payments consist of equity-settled share-based payments
and cash-settled share-based payments.The equity-settled share-based payment in return for employee services shall be measured at
the fair value of the equity instruments granted to employees on the grant date. On each
balance sheet date within the vesting period the Group based on the latest information
including the change of vested employees’ number whether it meets the specified
performance conditions and other subsequent information makes the best estimates of the
number of vested equity instruments. On this basis in accordance with the fair value on the
grant date the services obtained in the current period shall be included in the relevant costs or
expenses and the capital reserves shall be increased accordingly. After the vesting date no
adjustment shall be made to the relevant costs or expenses as well as the total amount of the
owner’s equities which have been confirmed. If the right may be exercised immediately after
the grant however the fair value shall be included in the relevant costs or expenses on the
grant date and the capital reserves shall be increased accordingly.
422023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
The cash-settled share-based payment shall be measured at the fair value of the liabilities
undertaken by the Group and determined by shares or other equity instruments. If the right
may be exercised immediately after the grant the fair value of the liabilities undertaken shall
be included in the relevant costs or expenses on the grant date and the liabilities shall be
increased accordingly; if the right may not be exercised until the vesting period comes to an
end or until the specified performance conditions are met on each balance sheet date within
the vesting period the sercices obtained in the current period shall based on the best estimate
of the information about the exercisable right be included in the costs or expenses at the fair
value of the liabilities undertaken and the liabilities shall be adjusted accordingly. The fair
value of the liabilities shall be re-measured on each balance sheet date and balance sheet date
before the settlement of related liabilities and the change shall be included in the current
profits and losses.When the Group modifies the share-based payment plan if the modification increases the fair
value of equity instrument granted the increase of service shall be recognized according to
the increase of fair value of equity instrument accordingly; if the number of equity instrument
granted is modified to increase the Group shall recognized the fair value of equity instrument
increased as the increase of service obtained. The increase of the fair value of equity
instruments refers to the difference between the fair value of the equity instruments before
and after the modification on the date of modification. If the revision of vesting conditions is
done in favor of employees such as vesting period cut-down modification or cancel of
performance conditions (rather than market conditions) the Group shall take the modified
vesting conditions into consideration to deal with vesting conditions. If the modification
decreases the total amount of share-based payment fair value or adopts other ways which are
adverse to the employees to modify terms and conditions of share-based payment plan unless
the Group cancels part or all of the granted equity instruments it shall conduct the further
accounting treatment of the services acquired and it shall be deemed that such change never
happens.If the equity instruments granted are cancelled within the vesting period the Group shall treat
them as accelerated exercise and include the amount to be recognized in the remaining vesting
period into the current profits and losses immediately and the capital reserves shall be
recognized at the same time. If the employee or other parties can choose to meet the
non-vesting conditions but fails to meet within the vesting period the Group shall treat it as a
cancellation of equity instruments.
5.26 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the
government to the Group except for capital contributions from the government in the capacity
as an investor in the Group.A government grant is recognised when there is reasonable assurance that the grant will be
received and that the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset it is measured at fair value.
432023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets. A
government grant related to an asset is recognised as deferred income and amortised over the
useful life of the related asset on a reasonable and systematic manner as other income or
non-operating income. A grant that compensates the Company for expenses or losses to be
incurred in the future is recognised as deferred income and included in other income or
non-operating income in the periods in which the expenses or losses are recognised or
included in other income or non-operating income directly.
5.27 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination or items recognised directly in equity (including other
comprehensive income).Current tax is the expected tax payable calculated at the applicable tax rate on taxable income
for the year plus any adjustment to tax payable in respect of previous years.At the balance sheet date current tax assets and liabilities are offset only if the Group has a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases which include the deductible
losses and tax credits carried forward to subsequent periods. Deferred tax assets are
recognised to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilised.Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is not
recognised for taxable temporary differences arising from the initial recognition of goodwill.At the balance sheet date deferred tax is measured based on the tax consequences that would
follow from the expected manner of recovery or settlement of the carrying amounts of the
assets and liabilities using tax rates enacted at the balance sheet date that are expected to be
applied in the period when the asset is recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilised.Such 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:
442023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
- 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 realise the assets and settle the liabilities simultaneously
in each future period in which significant amounts of deferred tax liabilities or deferred tax
assets are expected to be settled or recovered.
5.28 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
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.
5.28.1 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
452023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 5.20.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 remeasure lease liabilities at the present value of the lease payment after any
change:
– 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 remeasures 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.
5.28.2 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.
462023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 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 5.9. 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
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.
5.29 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the carrying
amount of a non-current asset or disposal group will be recovered through a sale transaction
rather than through continuing use.A disposal group refers to a group of assets to be disposed of by sale or otherwise together as
a whole in a single transaction and liabilities directly associated with those assets that will be
transferred in the transaction.A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in similar
transactions the non-current asset or disposal group must be available for immediate sale in
their present condition subject to terms that are usual and customary for sales of such assets or
disposal groups;
- Its sale is highly probable that is the Group has made a resolution on a sale plan and has
472023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 recognised as an impairment loss in
profit or loss.
5.30 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan which will be
approved after the balance sheet date are not recognised as a liability at the balance sheet date
but are disclosed in the notes separately.
5.31 Related parties
If a party has the power to control jointly control or exercise significant influence over
another party or vice versa or where two or more parties are subject to common control or
joint control from another party they are considered to be related parties. Related parties may
be individuals or enterprises. Enterprises with which the Company is under common control
only from the State and that have no other related party relationships are not regarded as
related parties.In addition to the related parties stated above the Group determines related parties based on
the disclosure requirements of Administrative Procedures on the Information Disclosures of
Listed Companies issued by the CSRC.
5.32 Segment reporting
The Group is principally engaged in the production and sales of wine brandy and sparkling
wine in China France Spain Chile and Australia. In accordance with the Group's internal
organisation structure management requirements and internal reporting system the Group's
operation is divided into four parts: China Spain France Chile and Australia. The
management periodically evaluates segment results in order to allocate resources and
evaluate performances. In 2023 over 85% of revenue more than 96% 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.
5.33 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets liabilities income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
5.33.1 Significant accounting estimates
For significant accounting estimates of this Company see Notes 5.3 7 11 and 16.
482023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
5.34 Changes in significant accounting policies and accounting estimates
5.34.1 Changes in significant accounting policies
Nil
5.34.2 Changes in significant accounting estimates
Nil
6. Taxes
6.1 Main taxes and tax rates are as follows:
Tax category Taxation basis Tax rates
Levied on the balance between the
13% 9% 6% (China) 20% (France)
output tax calculated based on taxable
Value added tax 21% (Spain) 19% (Chile) 10%
income and the input tax allowed to be
(Australia)
deducted in current period
10% of the price 20% of the price and
Consumption tax Levied on taxable income
1000 Yuan each ton (China)
City development tax Levied on circulation tax actually paid 7% (China)
25% (China) 25% (France) 28%
Corporate income tax Levied on taxable income
(Spain) 27% (Chile) 30% (Australia)
6.2 Tax incentives
Ningxia Changyu Grape Growing Co. Ltd. (“Ningxia Growing”) a subsidiary of the Group
whose principal activity is grape growing is incorporated in Ningxia Huizu Autonomous
Region. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC
Corporate Income Tax Measures for Implementation Ningxia Growing enjoys an exemption
of corporate income tax.Yantai Changyu Grape Growing Co. Ltd. (“Grape Growing”) a branch of the Company
whose principal activity is grape growing is incorporated in Zhifu District Yantai City
Shandong Province. According to clause 27 of PRC Corporate Income Tax and clause 86 of
PRC Corporate Income Tax Measures for Implementation Grape Growing enjoys an
exemption of corporate income tax.Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co. Ltd. (“R&Dand Growing”) a branch of the Company whose principal activity is 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 an exemption of corporate income tax.Beijing Changyu AFIP Agriculture Development Co. Ltd (“Agriculture Development”) a
subsidiary of the Group whose principal activity is grape growing is incorporated in Miyun
County Beijing. According to clause 27 of the Corporate Income Tax Law of the People’s
492023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Republic of China and clause 86 of the Implementation Rules of Enterprise Income Tax Law
of the People’s Republic of China Agriculture Development enjoys an exemption of corporate
income tax.Xinjiang Tianzhu Co. Ltd (“Xinjiang Tianzhu” disposed in June 2023) a subsidiary of the
Company is an enterprise of raw wine production and sales incorporated in Shihezi City
Xinjiang Uygur Autonomous Region. In accordance with the 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) Xinjiang
Tianzhu 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.Xinjiang Babao Baron Chateau Co. Ltd. (“Shihezi Chateau”) a subsidiary of the Company is
an enterprise of raw wine production and sales 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. (previous name: Chateau Changyu Moser XV
Co. Ltd. Ningxia referred to as “Ningxia Chateau”) a subsidiary of the Company is an
enterprise of raw wine production and sales 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.Changyu (Ningxia) Wine Co. Ltd. (“Ningxia Wine”) a subsidiary of the Company is an
enterprise of raw wine production and sales 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 enterprise income tax rate of
20%. Beijing Changyu Wine Industry Marketing Co. Ltd. (“Beijing Allotting”) a subsidiary
502023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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. 1 of [2023] of the Ministry of Finance and the State
Taxation Administration) from January 1 to December 31 2023 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%. Xinjiang Changyu Sales Co. Ltd. Weimeisi Tasting Center Branch has enjoyed
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 NingxiaShaanxi 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 59243 47954
Bank deposit 1654452878 1643577420
Other monetary capital 7116672 7828741
Total 1661628793 1651454115
Including: Total overseas deposits 26734678 17073210
As at June 30 2023 the restricted bank deposit details are listed as follows:
Unit: Yuan
512023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Ending balance Beginning balance
Housing fund of the unit 2671774 2671774
Total 2671774 2671774
As at June 30 2023 the details of other monetary funds are listed as follows:
Unit: Yuan
Item Ending balance Beginning balance
Guaranteed deposits paid for the letter of credit 6000000 6000000
Account balance of Alipay 974374 1695245
Guaranty money for ICBC platform 10000 10000
Guaranty money for customs 132298 123496
Total 7116672 7828741
As at June 30 2023 the bank deposits of the Group including short-term fixed deposits
ranging from 3 months to 12 months and interests amounted to RMB 228759568 Yuan with
the interest rates ranging from 1.7% to 2.15% (December 31 2022: RMB 28200000 Yuan).
7.2 Bills receivable
Classification of bills receivable
Item Ending balance Beginning balance
Bank acceptance bills 684245 2712460
Total 684245 2712460
The above bills receivable are all due within one year.
7.3 Accounts receivable
7.3.1 Accounts receivable disclosed by type
Unit: Yuan
Ending balance Beginning balance
Provision for bad Provision for bad
Type Book balance Book balance debts debts
Book value Book value
Accrued Accrued
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
225725385100.0%155496006.89%210175785358539091100%145561064.06%343982985
for bad debts is
accrued on a
combined basis
Total 225725385 100.0% 15549600 6.89% 210175785 358539091 100% 14556106 4.06% 343982985
522023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Provision for bad debts accrued on a combined basis:
Unit: Yuan
Ending balance
Name
Book balance Provision for bad debts Accrued proportion
Amounts due from related
255733146030.18%
parties
Amounts due from other
223168054155449976.97%
customers
Total 225725385 15549600 --
Disclosed by age:
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 214280276
1-2 years 11122911
2-3 years 322198
Over 3 years
Total 225725385
As at June 30 2023 the accounts receivable with ownership restrictions were RMB
64860399 Yuan (December 31 2022: 59982807 Yuan). Please refer to Note 7.19 for details.
7.3.2 Provision for bad debts accrued withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
Unit: Yuan
Beginning Changes in this period
Ending
Type balance of the Withdrawn or
year Accrued Cancelled
balance
transferred back
Accounts receivable for which
1455610699349415549600
provision for bad debts is accrued
Total 14556106 993494 15549600
7.3.3 Accounts receivable actually cancelled after verification in this period
Nil
7.3.4 Accounts receivable collected by the borrowers of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage in total Ending balance of
Relationship with
Unit Amount Period accounts provision for bad
the Group
receivable and doubtful debts
Customer 1 Third party 34036910 Within 1 year 15.1% 60724
Customer 2 Third party 9422337 Within 1 year 4.2% 586782
Customer 3 Third party 6956313 Within 1 year 3.1% 433209
Customer 4 Third party 5004414 Within 1 year 2.2% 311653
Customer 5 Third party 4394266 Within 1 year 1.9% 273656
Total -- 59814240 -- 26.5% 1666024
532023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.3.5 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.3.6 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Receivables financing
Unit: Yuan
Item Ending balance Beginning balance
Bills receivable 308817929 309329918
Total 308817929 309329918
7.4.1 The pledged bills receivable of the Group at the end of the year
Nil
7.4.2 Outstanding endorsed bills that have not matured at the end of the year
Category Amount derecognised at end of period
Bank acceptance bills 97379122
Total 97379122
As at June 30 2023 bills endorsed by the Group to other parties which are not yet due at the
end of the period is RMB 97379122 Yuan (December 31 2022: RMB 500480279 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 derecognise the note receivables endorsed. If the bank is unable to pay the notes on
maturity according to the relevant laws and regulations of China the Group would undertake
limited liability for the notes.
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 9182282 99.25% 59426080 98.40%
1-2 years 69119 0.75% 989428 1.60%
2-3 years
More than 3 years
Total 9251401 -- 60415508 --
7.5.2 Advance payment collected by the prepaid parties of top 5 units ranked by the
ending balance
542023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Unit: Yuan
Percentage in the
Relationship with Reason for
Category of client Amount Age total advance
the Group unsettlement
payment%
Within 1 year Prepaid
Unit 1 Third party 1073128 11.6%
(including 1 year) electricity
Within 1 year Prepaid service
Unit 2 Third party 1000000 10.8%
(including 1 year) charge
Within 1 year
Unit 3 Third party 750000 Prepaid freight 8.1%
(including 1 year)
Within 1 year
Unit 4 Third party 501076 Prepaid freight 5.4%
(including 1 year)
Within 1 year Prepaid payment
Unit 5 Third party 300000 3.2%
(including 1 year) for goods
Total -- 3624204 -- 39.10%
7.6 Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Interests receivable
Dividends receivable
Other receivables 69101039 70542398
Total 69101039 70542398
Other receivables
7.6.1 Other receivables classified by nature
Unit: Yuan
Nature Ending book balance Beginning book balance
Deposit and guaranty money receivable 3529407 5578001
Consumption tax and added-value tax export rebate 8971546 12509201
Imprest receivable 314172 440759
Compensation for land acquisition and storage receivable 41268902 41268902
Other 15017012 10745535
Total 69101039 70542398
7.6.2 Disclosed by age
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 65165325
1-2 years 1454647
2-3 years 411516
More than 3 years 2069551
Total 69101039
7.6.3 Provision for bad debts accrued withdrawn or transferred back in this period
552023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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 the borrowers of top 5 units ranked by the ending
balance
Unit: Yuan
Percentage in total Ending balance of
Ending
Unit Nature Age ending balance of other provision for bad
balance
accounts receivable debts
Land acquisition and
Unit 1 41268902 Within 1 years 59.72%
reserve funds
Value-added tax export
Unit 2 7762031 Within 1 years 11.23%
rebate
Value-added tax and
Unit 3 consumption tax export 1209515 Within 1 years 1.75%
rebate
Unit 4 Guaranty money 721657 Within 1 year 1.04%
Unit 5 Guaranty money 572880 1-2 years 0.83%
Total -- 51534985 -- 74.58%
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 86766001 86766001 258200178 258200178
Goods in process 2213143868 2213143868 1986391270 1986391270
Commodity stocks 641193968 14608393 626585575 673171026 14363959 658807067
Total 2941103837 14608393 2926495444 2917762474 14363959 2903398515
562023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.7.2 Inventory depreciation provision
Unit: Yuan
Increase in this period Decrease in this period
Beginning
Item Transfer back or Ending balance balance Accrual Other Other
write-off
Raw materials
Goods in process
Commodity stocks 14363959 14608393 14363959 14608393
Total 14363959 14608393 14363959 14608393
7.8 Other current assets
Unit: Yuan
Item Ending balance Beginning balance
Trademark use fees 108931118 120930641
Prepaid corporate income tax 12985243 19102111
Deductible input tax 31032377 44270238
Expense to be amortized 3095677 1034403
Total 156044415 185337393
7.9 Long-term equity investments
Unit: Yuan
Movements during the period Ending
Beginning balance of
Losses from Other Declare Ending balance
Investee balance (book Other Accrual provision Increase Decrease in investments comprehensive cash (book value)
value) equity provision for Others for
in capital capita under income dividend or
changing impairment impairment
equity-method adjustment profit
1. Joint ventures
SAS L&M
Holdings
37970535-112434036846195(“L&MHoldings”)
Subtotal 37970535 -1124340 36846195
2. Associates
Weimeisi
(Shanghai)
Enterprise
2318351237328554934
Development Co.Ltd. (“WeimeisiShanghai”)
Chengdu Yufeng
Brand
Management Co. 420369 -41400 378969Ltd. (“ChengduYufeng”) (Note)
Yantai Guolong
Wine Industry
Co. Ltd. 662130 178218 840348(“Guolong WineIndustry”) (Note)
Subtotal 3400850 2373285 191752 1219317
Total 41371385 2373285 -932588 38065512
Note: The Group has appointed one director to each of these investees.
572023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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
1. Beginning balance 70954045 70954045
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 70954045 70954045
Ⅱ Accumulated depreciation &
accumulated amortization
1. Beginning balance 48838727 48838727
2. Increase in this period 1073998 1073998
2.1 Accrual or amortization 1073998 1073998
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 49912725 49912725
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 21041320 21041320
2. Beginning book value 22115318 22115318
7.11 Fixed assets
Unit: Yuan
Item Ending balance Beginning balance
Fixed assets 5926395012 6028137972
Disposal of fixed assets
Total 5926395012 6028137972
582023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.11.1 Particulars of fixed assets
Unit: Yuan
Houses and Transportation
Item Machinery equipment Total
buildings equipment
Ⅰ Original book value:
1. Beginning balance 5878199055 2793728175 25888552 8697815782
2. Increase in this period 14876612 44297900 9252 59183764
2.1 Acquisition 9161231 42571564 9252 51742047
2.2 Transfer in from
571538117263367441717
construction in progress
2.3 Business merger
increase
3. Decrease in this period 6544913 34325726 1538783 42409422
3.1 Disposal or
32763148128642834049576
retirement
3.2 Others 6544913 1562578 252355 8359846
4. Ending balance 5886530754 2803700349 24359021 8714590124
Ⅱ Accumulated
depreciation
1. Beginning balance 1167095365 1477263867 22633029 2666992261
2. Increase in this period 77811305 77119167 953314 155883786
2.1 Accrual 77811305 77119167 953314 155883786
3. Decrease in this period 3303153 30076823 1414322 34794298
3.1 Disposal or
29248194117458530422779
retirement
3.2 Others 3303153 828629 239737 4371519
4. Ending balance 1241603517 1524306211 22172021 2788081749
Ⅲ Impairment provision
1. Beginning balance 2685549 2685549
2. Increase in this period
2.1 Accrual
3. Decrease in this period 2572186 2572186
3.1 Disposal or
25560182556018
retirement
3.2 Others 16168 16168
4. Ending balance 113363 113363
Ⅳ Book value
1. Ending book value 4644927237 1279280775 2187000 5926395012
2. Beginning book value 4711103690 1313778759 3255523 6028137972
As at June 30 2023 the net value of the fixed assets with ownership restrictions was RMB
294202438 Yuan (December 31 2022: RMB 303897124 Yuan). Please refer to Note 7.53
for details.The Company’s disposal of its subsidiary Xinjiang Tianzhu this year was not included in the
scope of the consolidated balance sheet at the end of this period. As of the date of loss of
control the original book value accumulated depreciation and depreciation reserves of fixed
592023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
assets of Xinjiang Tianzhu are respectively listed in the “Others” item of the current decrease
in the original book value accumulated depreciation and depreciation reserves of fixed
assets.
7.11.2 Particulars of temporarily idle fixed assets
Unit: Yuan
Accumulated Depreciation
Item Original book value Book value Remarks
depreciation reserves
Buildings 16248086 8767714 7480372
Machinery equipment 780191 627819 113363 39009
Transportation equipment 1081789 1027699 54090
Total 18110066 10423232 113363 7573471
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
Machinery equipment 4365
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 Reception Building of
261255708 Under transaction
Chang’an Chateau
Building and Boiler Room of Koya 171944719 Under transaction
European Town Main Building and Service Building of
161661819 Under transaction
Chateau AFIP
Office Building and Packaging Workshop of Icewine Valley 9586292 Under transaction
Wine-making Workshop of Changyu (Jingyang) 4497542 Under transaction
Office Building Laboratory Building and Workshop of
2895534 Under transaction
Fermentation Center
Finished Goods Warehouse and Workshop of Kylin Packaging 1988799 Under transaction
Others 273112 Under transaction
Total 614103525
7.12 Construction in progress
Unit: Yuan
Item Ending balance Beginning balance
Construction in progress 47247490 40934161
Engineering materials
Total 47247490 40934161
7.12.1 Particulars of construction in progress
602023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Museum Upgrading and Rebuilding
46036465460364653298141932981419
Project
Renovation of Refrigeration Equipment
70000070000070657447065744
in Xinjiang Chateau Workshop
Construction Projects of Other
511025511025886998886998
Companies
Total 47247490 47247490 40934161 40934161
612023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.12.2 Changes of major construction in progress in this period
Unit: Yuan
Transferred Including: Proportion of Accumulative Capitalization
Other capitalized
Beginning Increase in to fixed Ending accumulative capitalized ratio of Item Budget decrease in amount of Capital source
balance this period assets in balance project input amount of interest in this this period interest in this
this period in budget interest period
period
Construction Project of
780000000 7065744 7065744 100.% Self-raised funds
Shihezi Chateau
Museum Upgrading and
51000000 32981419 13055046 46036465 90.3% Self-raised funds
Rebuilding Project
Renovation of
Refrigeration Equipment
2980000 700000 700000 23.5% Self-raised funds
in Xinjiang Chateau
Workshop
As at June 30 2023 there was no indication for impairment of construction in progress of the Group so no provision for impairment was made.
622023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.13 Productive biological assets
7.13.1 Productive biological assets by cost measurement method
Unit: Yuan
Plantation
Item Total
Immature Mature
Ⅰ Original book value
1. Beginning balance 23405557 252471374 275876931
2. Increase in this period 1360198 83870 1444068
2.1 Outsourcing 0
2.2 Self cultivation 1444068 1444068
The immature turn to the mature -83870 83870
3. Decrease in this period 850105 130466 980571
3.1 Disposal 850105 130466 980571
3.2 Other 0
4. Ending balance 23915650 252424778 276340428
Ⅱ Accumulated depreciation
1. Beginning balance 91456190 91456190
2. Increase in this period 7047318 7047318
2.1 Accrual 7047318 7047318
3. Decrease in this period 95335 95335
3.1 Disposal 95335 95335
3.2 Other
4. Ending balance 98408173 98408173
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
4. Ending balance
Ⅳ Book value
1. Ending book value 23915650 154016605 177932255
2. Beginning book value 23405557 161015184 184420741
As at June 30 2023 no ownership of the biological assets was restricted.As at June 30 2023 there was no indication for impairment of biological assets of the Group
so no provision was made.
632023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.14 Right-of-use assets
Unit: Yuan
Item Building Land Others Total
Ⅰ Original book value
1. Beginning balance 84818532 137980409 1697986 224496927
2. Increase in this period
3. Decrease in this period
4. Ending balance 84818532 137980409 1697986 224496927
Ⅱ Accumulated amortization
1. Beginning balance 33923955 49667021 1018792 84609768
2. Increase in this period 8014300 2898345 169799 11082444
2.1 Accrual 8014300 2898345 169799 11082444
3. Decrease in this period
3.1 Disposal
4. Ending balance 41938255 52565366 1188591 95692212
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 42880277 85415043 509395 128804715
2. Beginning book value 50894577 88313388 679194 139887159
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 475770881 101979429 189575068 767325378
2. Increase in this period 885077 198448 1083525
2.1 Acquisition 885077 198448 1083525
2.2 Internal R&D
2.3 Business merger
increase
3. Decrease in this period 26611363 289000 26900363
3.1 Disposal
3.2 Others 26611363 289000 26900363
4. Ending balance 449159518 102575506 189773516 741508540
Ⅱ Accumulated amortization
642023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Land use right Software use right Trademark Total
1. Beginning balance 110698068 62835583 15550881 189084532
2. Increase in this period 4749952 3965405 220979 8936336
2.1 Accrual 4749952 3965405 220979 8936336
3. Decrease in this period 7718585 289000 8007585
3.1 Disposal
3.2 Others 7718585 289000 8007585
4. Ending balance 107729435 66511988 15771860 190013283
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 341430083 36063518 174001656 551495257
2. Beginning book value 365072813 39143846 174024187 578240846
As at June 30 2023 the net value of the intangible assets with ownership restrictions was
RMB 166920626 Yuan (December 31 2022: RMB 169385254 Yuan). Please refer to Note
7.53 for details.
The Company’s disposal of the subsidiary Xinjiang Tianzhu this year was not included in the
scope of the consolidated balance sheet at the end of this period. As of the date of loss of
control the original book value and accumulated depreciation of intangible assets of Xinjiang
Tianzhu are respectively listed in the “Others” item of the current decrease in the original
book value and accumulated depreciation of intangible assets.
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 Beginning Ending
forming goodwill balance Formed by Other Disposal Other balance
business merger
Etablissements Roullet Fransac
1311252513112525
(“Roullet Fransac”)
Dicot Partners S.L (“Atrio Group”) 92391901 92391901
Indomita Wine Company Chile SpA 6870115 6870115
Kilikanoon Estate Australia 37063130 37063130
Total 149437671 149437671
652023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.16.2 Provision for impairment of goodwill
Unit: Yuan
Increase in this period Decrease in this period
Name of the invested unit or matter Beginning Ending
forming goodwill balance Formed by Other Disposal Other balance
business merger
Etablissements Roullet Fransac
(“Roullet Fransac”)
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
Increase in this Amortization in this
Item Beginning balance Other decrease Ending balance
period period
Land acquisition fees 45043781 736215 44307566
Afforestation fees 118996004 4340459 114655545
Renovation costs 103895364 3431789 100463575
Other 6764083 163971 571312 6356742
Total 274699232 163971 9079775 265783428
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 Deductible temporary Deferred income
difference tax assets difference tax assets
Asset impairment provision 30271356 7692955 31605614 8024903
Unrealized profits from inter-company
32049141580122854431328252107832063
transactions
Deductible loss 375497265 89476843 285560642 67483931
Unpaid bonus 113790791 28447698 132673269 33168317
Dismission welfare 6441635 1610409 9422154 2355538
Deferred income 34530599 7449099 38389058 8288411
Others 1383154 345788 837972 209493
Total 882406215 215145646 929816961 227362656
662023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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
difference liabilities difference tax liabilities
Assets appraisal appreciation in business
2776539980392854365110510577065
merger under non-common control
Others 3579479 894870 2759468 689867
Total 31344878 8934155 46410573 11266932
7.18.3 Details of unconfirmed deferred income tax assets
Unit: Yuan
Item Ending balance Beginning balance
Deductable temporary difference
Deductible loss 380781818 352775161
Total 380781818 352775161
7.18.4 Deductible losses of unconfirmed deferred income tax assets will expire in:
Unit: Yuan
Year Ending sum Beginning sum Remark
20232280173722801737
20244208845342088453
20257572453875724538
20267219789172197891
2027139962542139962542
202828006657
Total 380781818 352775161 --
7.19 Short-term loans
7.19.1 Classification of short-term loans
Unit: Yuan
Item Ending balance Beginning balance
Mortgage loan 232810003 127908137
Guaranteed loan 16000831 33603541
Fiduciary loan 100075000 227866802
Total 348885834 389378480
As at June 30 2023 EUR mortgage loan was EUR 16734045 (equivalent of RMB
131816526 Yuan) (December 31 2022: EUR 8080778 equivalent of RMB 59982807
Yuan) of accounts receivable factoring business handled by Hacienday Vi?edos Marques del
Atrio S.L.U (“Atrio”) with banks including Banco de Sabadell S.A.As at June 30 2023 USD mortgage loan was USD 13625000 (equivalent of RMB
98541259 Yuan) (December 31 2022: USD 9750000 equivalent of RMB 67925330
672023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Yuan) of loans borrowed by Chile Indomita Wine Group from Banco Scotiabank with the
fixed assets as collateral.On June 30 2023 AUD guaranteed loan was AUD 3334062 (equivalent of RMB
16000831 Yuan) (December 31 2022: AUD 7128758 equivalent of RMB 33603541
Yuan) borrowed by Australia Kilikanoon Estate from ANZ Bank and it is guaranteed by this
Company.The balance includes 2527218 of interest due。
7.20 Accounts payable
7.20.1 List of accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Accounts payable for materials etc. 417210497 503323746
Total 417210497 503323746
7.20.2 Explanation of significant accounts payable aged more than one year
Item Ending balance Reasons for outstanding or carryover
Unit 1 19434600 Payment for parent company
Overseas raw wine suppliers offer a
Unit 2 8073630
credit period exceeding one year
Total 27508230
7.21 Contract liabilities
Unit: Yuan
Item Ending balance Beginning balance
Advances from customers 135643228 164437033
Withholding of goods with sales rebate 1290958
Total 135643228 165727991
7.22 Employee remunerations payable
7.22.1 List of employee remunerations payable
Unit: Yuan
Increase in this Decrease in this
Item Beginning balance Ending balance
period period
1. Short-term remuneration 173197491 166002478 210292353 128907616
2. Post-employment welfare – defined
331893270942682740664119520
contribution plan
3. Dismission welfare 9422154 1099333 4079852 6441635
4.Other welfare due within one year
Total 182951538 194196079 241778846 135368771
682023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.22.2 List of short-term remunerations
Unit: Yuan
Beginning Increase in this Decrease in this
Item Ending balance
balance period period
1. Salaries bonuses allowances and subsidies 169643402 141156089 185471062 125328429
2. Staff welfare 1460170 8240037 7894606 1805601
3. Social insurance charges 307244 8158059 8401035 64268
Including: Medical insurance 307244 7329679 7572817 64106
Injury insurance 826682 826520 162
Maternity insurance 1698 1698
4. Housing fund 38582 6402542 6394122 47002
5. Union fee and staff education fee 1748093 2045751 2131528 1662316
6. Short-term compensated absences
7. Short-term profit-sharing plan
Minus: Those divided into non-current
liabilities
Total 173197491 166002478 210292353 128907616
7.22.3 List of defined contribution plan
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment insurance 330660 26420976 26732216 19420
2. Unemployment insurance 1233 673292 674425 100
3. Enterprise annuity payment
Total 331893 27094268 27406641 19520
7.22.4 Dismission welfare
Unit: Yuan
Item Beginning balance Increase Decrease Ending balance
1. Compensation for server of labor relation
2. Compensation for early retirement 9422154 1099333 4079852 6441635
Total 9422154 1099333 4079852 6441635
7.23 Taxes and dues payable
Unit: Yuan
Item Ending balance Beginning balance
Value added tax 26000422 42260465
Consumption tax 24511397 45524174
Corporate income tax 134483218 131264991
Individual income tax 911690 1199990
Urban maintenance and construction tax 3010065 1899840
Education surcharges 2217847 2731857
Urban land use tax 2270059 6168990
692023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Other 9059128 8645595
Total 202463826 239695902
7.24 Other payables
Unit: Yuan
Item Ending balance Beginning balance
Interest payable 88889
Dividends payable 393855 70317
Other payables 373351763 372449483
Total 373745618 372608689
7.24.1 Interest payable
Unit: Yuan
Item Ending balance Beginning balance
Interest of long-term loans with interest paid by
installment and principal paid on maturity
Interest of corporate bonds
Interest payable of short-term loans 88889
Interest of preferred shares\ perpetual bonds
divided into financial liabilities
Other
Total 88889
7.24.2 Dividends payable
Unit: Yuan
Item Ending balance Beginning balance
Ordinary stock dividends
Preferred stock dividends/sustainable debt
dividends divided into equity instruments
Other 393855 70317
Total 393855 70317
7.24.3 Other payables
7.24.3.1 Other payables listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Dealer’s deposit payable 197378796 207492570
Equipment purchase and construction costs
1616546115976573
payable
Transportation charges payable 12339582 25894816
Advertisement expenses payable 40562800 40244601
Employee cash deposit 508175 508175
Supplier’s deposit payable 14919515 13549010
Contracting fees payable 4340562 7407093
702023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Other 87136872 61376645
Total 373351763 372449483
7.24.3.2 Explanation of significant accounts payable aged more than one year
As at June 30 2023 there were no significant accounts payable aged more than one year.
7.25 Non-current liabilities due within one year
Unit: Yuan
Item Ending balance Beginning balance
Long-term loans due within one year 98331009 103011894
Bonds payable due within one year
Long-term accounts payable due within one year 22000000 22000000
Lease liabilities due within one year 23433390 19008940
Total 143764399 144020834
7.26 Other current liabilities
Item Ending balance Beginning balance
Unamortized VAT amount 16989679 18945706
Accrued interest on long-term loans 697977
Total 17687656 18945706
7.27 Long-term loans
7.27.1 Classification of long-term loans
Unit: Yuan
Item Ending balance Beginning balance
Guaranteed loan 45437416 44781100
Fiduciary loan 134854819 186342909
Minus: Long-term loans due within one year 98331009 103011894
Total 81961226 128112115
As at June 30 2023 fiduciary loans (EUR) were EUR 17119567 (equivalent of RMB
134854819 Yuan) (December 31 2022: EUR 25103788 equivalent of RMB 186342909
Yuan) borrowed by Atrio from Banco Sabadell Bankia Banco Santander BBVA and Caja
Rural de Navarr etc. Guaranteed loans (AUD) were AUD 9500000 (equivalent of RMB
45437416 Yuan) (December 31 2022: AUD 9500000 equivalent of RMB 44781100
Yuan) borrowed by Australia Kilikanoon Estate from ANZ Bank and it is guaranteed by this
Company.
7.28 Lease Liabilities
Unit: Yuan
Item Ending balance Beginning balance
Long-term lease liabilities 117902746 128514033
712023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Minus: Lease liabilities due within one year 23433390 19008940
Total 94469356 109505093
7.29 Long-term accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Long-term accounts payable 20000000 42000000
Special accounts payable
Total 20000000 42000000
7.29.1 Long-term accounts payable listed by nature
Unit: Yuan
Item Ending balance Beginning balance
Agricultural Development Fund of China (“CADF”) 42000000 64000000
Minus: Long-term payables due within one year 22000000 22000000
Balance of long-term payables 20000000 42000000
In 2016 Agricultural Development Fund invested RMB 305000000 Yuan in the Research
Development & Manufacture Company accounting for 37.9% of the registered capital.According to the investment agreement it is agreed that Agricultural Development Fund will
take back the investment fund in ten years and obtain fixed income according to year which
is 1.2% of the remaining principal. Except for the above fixed income the Agricultural
Development Fund shall not enjoy other profits of the Research Development & Manufacture
Company or bear the losses of the Research Development & Manufacture Company.Accordingly the investment of the Agricultural Development Fund in the Research
Development & Manufacture Company is equity investment nominally which is debt
investment (finance discount interest loan) in deed. The Group included the investment of the
Agricultural Development Fund in long-term accounts payable measured by amortized cost.From January to June 2023 the Group gave back the principal of RMB 22000000 Yuan.Refer to Note 7.53 for details of mortgaged and pledged assets.
7.30 Deferred income
Unit: Yuan
Beginning Increase in this Decrease in this
Item Ending balance Forming reason
balance period period
Governmental subsidy 41295338 4510491 36784847
Total 41295338 4510491 36784847 --
Projects related to governmental subsidy
Unit: Yuan
Amount of Amount Amount
Amount
subsidy included in included Related to
Beginning offset the Other Ending
Item of liabilities newly non-operating in other assets/
balance cost changes balance
increased in revenue in this income in income
expenses
this period period this period
Industrial development 16400000 2050000 14350000 Related to
722023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Amount of Amount Amount
Amount
subsidy included in included Related to
Beginning offset the Other Ending
Item of liabilities newly non-operating in other assets/
balance cost changes balance
increased in revenue in this income in income
expenses
this period period this period
supporting funds assets
Xinjiang industrial
revitalisation and Related to
99540007110009243000
technological assets
transformation project
Subsidy for retaining wall Related to
59733333190005654333
assets
Special funds for cellar Related to
20797112079711
maintenance assets
Wine fermentation
Related to
capacity construction 1600000 200000 1400000
assets
(Huanren) project
Special funds for efficient
Related to
water-saving irrigation 991000 81000 910000
assets
project
Information-based system
construction engineering Related to
580000290000290000
technical transformation assets
project
Subsidy for economic and
energy-saving Related to
51320064150449050
technological assets
transformation projects
Subsidy for mechanic
Related to
development of Penglai 90408 67590 22818
assets
Daliuhang Base
Special fund for Yantai
Related to
City Innovation Driven 172406 68219 104187
income
Development
Prize for Yantai Mayor’s
Related to
Cup Industrial Design 35000 7500 27500
income
Competition
Total 38389058 3858459 34530599
7.31 Share capital
Unit: Yuan
Increase or decrease (+-) in this period
Beginning Ending
balance Newly issued Allocated Share transferred from Other Subtotal balance
shares shares accumulation fund
Total shares 685464000 685464000
7.32 Capital reserves
Unit: Yuan
Decrease in this
Item Beginning balance Increase in this period Ending balance
period
Capital premium (Share
5190521721091508517960664
capital premium)
Other capital reserves 5916588 671300 6587888
Total 524968760 671300 1091508 524548552
732023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
The decrease in capital premium of 1091508 Yuan in this period is due to the acquisition of
minority shareholders’ equity; and the increase in other capital reserves of 671300 Yuan in
this period is due to the recognition of share-based payments.
7.33 Other comprehensive income
Unit: Yuan
Amount incurred in this period
Amount Minus: amount Minus: amount
incurred included in other included in other Beginning Minus: Attributable Attributable Ending
Item before comprehensive comprehensive balance income to parent to minority income before income before balance
income tax and transferred to and transferred to tax company shareholders
in this profit or loss in retained earnings expenses after tax after tax
period this period in this period
1. Other comprehensive
income not to be
reclassified into profit
and loss later
Including: Changes after
remeasuring 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 -23760238 13707142 12136065 1571077 -11624173
into profit and 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
-2376023813707142121360651571077-11624173
Currency Financial
Statement
Total other
-2376023813707142121360651571077-11624173
comprehensive income
742023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.34 Surplus reserves
Unit: Yuan
Decrease in this
Item Beginning balance Increase in this period Ending balance
period
Legal surplus reserves 342732000 342732000
Free surplus reserves
Reserve fund
Enterprise expansion fund
Other
Total 342732000 342732000
7.35 Undistributed profit
Unit: Yuan
Item Ending balance Beginning balance
Undistributed profit at the end of prior period before adjustment 9049649211 8929426600
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 adjustment 9049649211 8929426600
Plus: Net profit for owner of the parent company 363569436 428681411
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 308458800 308458800
Common dividend transferred to share capital
Undistributed profit at the end of period 9104759847 9049649211
7.36 Operating income and operating cost
7.36.1 Details of operating income
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 1934472124 796260619 1929907550 817568906
Other business 32266361 9198773 23184585 4286560
Total 1966738485 805459392 1953092135 821855466
Including: Income from contracts 1965668542 804756028 1952022192 821152102
Income from house rents 1069943 703364 1069943 703364
752023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.36.2 Situation of income from contracts
Unit: Yuan
Contract classification Amount incurred in this period
Type of merchandise
- Alcoholic beverage 1934472124
- Others 31196418
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 1965668542
7.37 Taxes and surcharges
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 83799789 75570111
Urban maintenance and construction tax 13221014 11339556
Education surcharges 9591885 8217554
Building tax 17081105 13700072
Land use tax 5443389 5662279
Vehicle and vessel use tax 13298 16152
Stamp duty 2190579 155653
Other 106007 78241
Total 131447066 114739618
7.38 Selling expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Salary and welfare expenses 133331239 129577551
Marketing expenses 150784963 131324948
Labor expenses 18891110 18445967
Depreciation expenses 31599626 29955199
Storage expenses 13287122 13459898
Advertisement expenses 25707453 24366253
Trademark use fees 11320305 10512100
Travel expenses 12462566 9343468
Design & production expenses 9833969 9037718
Conference expenses 4528120 3106738
Water electricity and gas charges 4658860 5393494
Other 36596377 33241085
Total 453001710 417764419
762023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
7.39 Management expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Employee remunerations 30200207 32561222
Depreciation expenses 50660829 39755608
Contracting expenses 2119800 2119800
Repair expenses 1865967 6115206
Office expenses 10169392 10774571
Amortization expenses 8377335 9457449
Afforestation fees 6950800 6811054
Safe production costs 3124162 5358613
Business entertainment expenses 1373098 1498647
Public security & clean-keeping
35391933385138
expenses
Travel expenses 1235690 832989
Other 9078922 8833973
Total 128695395 127504270
7.40 R&D expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 6653626 5509656
Total 6653626 5509656
7.41 Financial expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 12325532 11201775
Minus: Interest income 9060578 10191697
Plus: Commission charges 662758 701200
Exchange gain or loss -701279 4374160
Total 3226433 6085438
7.42 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 (Huanren) project 200000 200000
Xinjiang industrial revitalization and technological
711000711000
transformation project
772023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Source of other income Amount incurred in this period Amount incurred in prior period
Special subsidy for supporting infrastructure 530000
Other – related to assets 821740 931913
Special funds for supporting corporate development 14840000 8222076
Other – related to income 10348445 8984256
Total 28971185 21629245
7.43 Investment income
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Investment income from long-term equity by equity
-932588-921317
method
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
Dividend income gained from other equity instruments
during the holding period
Gains generated from the remaining equity remeasured
as per fair value after the loss of control
Interest income gained from equity inverstment during
the holding period
Interest income gained from other equity inverstments
during the holding period
Investment income gained from disposal of other equity
inverstments
Total 15614536 -921317
7.44 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 -993494 486076
Total -993494 486076
7.45 Loss on impairment of assets
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
1. Loss on bad debts
2. Inventory falling price loss and loss on
-2444341490900
impairment of contrct execution cost
3. Loss on impairment of long-term equity
investment
4. Loss on impairment of investment real estate
5. Loss on impairment of fixed assets
6. Loss on impairment of engineering materials
7. Loss on impairment of construction in progress
8. Loss on impairment of productive biological
782023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Amount incurred in this period Amount incurred in prior period
assets
9. Loss on impairment of oil and gas assets
10. Loss on impairment of intangible assets
11. Loss on impairment of goodwill
12. Loss on impairment of contract assets
13. Other
Total -244434 1490900
7.46 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 341232 -8239072
Income from productive biological assets -639633
Total -298401 -8239072
7.47 Non-operating income
Unit: Yuan
Amount incurred Amount incurred in Amount included in the current
Item
in this period prior period non-recurring profits/losses
Gains on exchange of non-monetary assets
Grains on donations
Governmental subsidy
Gains on scrap of non-current assets 9800
Others 1772522 2438813 1772522
Total 1772522 2448613 1772522
7.48 Non-operating expenses
Unit: Yuan
Amount incurred Amount incurred in Amount included in the current
Item
in this period prior period non-recurring profits/losses
Loss on exchange of non-monetary assets
Donation 900000 310000 900000
Loss on scrap of non-current assets 20717 139401 20717
Fine penalty and overdue fine paid due to
104298579688104298
violation of laws and administrative regulations
Others 1100930 314443 1100930
Total 2125945 1343532 2125945
7.49 Income tax expenses
7.49.1 List of income tax expenses
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
792023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Current income tax expenses 120466280 73145468
Deferred income tax expenses 9884233 55044281
Total 130350513 128189749
7.49.2 Adjustment process of accounting profit and income tax expenses
Unit: Yuan
Item Amount incurred in this period
Total profit 480950832
Income tax expenses calculated according to the legal/applicable tax rate 120237708
Influence of different tax rates applicable to subsidiary 403016
Influence of income tax in the term before adjustment 2828018
Influence of nontaxable income
Influence of non-deductible costs expenses and losses 851758
Influence of deductible loss from use of unconfirmed deferred income tax assets in prior
-824102
period
Influence of deductible temporary difference or deductible loss of unconfirmed deferred
6854115
income tax assets in this period
Income tax expense 130350513
7.50 Other comprehensive incomes
Refer to Note 7.33 for details.
7.51 Items of cash flow statement
7.51.1 Other cash received related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 24849782 17118754
Interest income 8892658 9195398
Net amercement income 254866 276749
Others 13253796 3545416
Total 47251102 30136317
7.51.2 Other cash paid related to operating activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 242901628 232451841
Administrative expenses 41163720 45725346
Others 8743269 12916682
Total 292808617 291093869
7.51.3 Other cash received related to investing activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
802023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Net cash received from acquiring subsidiaries 657049
Total 657049
7.51.4 Other cash paid related to financing activities
Unit: Yuan
Item Amount incurred in this period Amount incurred in prior period
Cash paid for leasing 11384300 9765810
Cash paid for acquiring minority shareholders’
14623400
equity
Capital reduction paid to minority shareholders 12000000
Total 38007700 9765810
7.52 Supplementary information to cash flow statement
7.52.1 Supplementary information to cash flow statement
Unit: Yuan
Amount incurred in this Amount incurred in prior
Supplementary materials
period period
1. Cash flows from operating activities calculated by adjusting
----
the net profit:
Net profit 350600319 346994432
Plus: Provision for impairment of assets 1237928 -1976976
Depreciation of fixed assets oil-and-gas assets and productive
164005102157778809
biological assets
Depreciation of right-of-use assets 11082444 11051483
Amortization of intangible assets 8936336 10000383
Amortization of long-term deferred expenses 9079775 9845289
Losses on disposal of fixed assets intangible assets and other
2984018239072
long-term assets (profit listed with “-”)
Losses on retirement of fixed assets (profit listed with “-”) 20717 129601
Losses on fair value change (profit listed with “-”)
Financial costs (profit listed with “-”) 10419504 9960206
Investment losses (profit listed with “-”) -15614536 921317
Decrease in deferred income tax assets (increase listed with
1221701055773513
“-”)
Increase of deferred income tax liabilities (decrease listed
-2332777-729232
with “-”)
Decrease in inventories (increase listed with “-”) -22578567 -29711487
Decrease in operating receivables (increase listed with “-”) 217964425 389398124
Increase in operating payable (decrease listed with “-”) -218087595 -361400939
Other 671300
Net cash flows from operating activities 527919786 606273595
2. Significant investment and financing activities not
involving cash deposit and withdrawal:
Debt transferred into assets
Convertible corporate bond due within 1 year
Fixed assets under financing lease
812023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Amount incurred in this Amount incurred in prior
Supplementary materials
period period
3. Net changes of cash and cash equivalent:
Ending balance of cash 1423080779 1839856934
Minus: Beginning balance of cash 1612753600 1502327029
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent -189672821 337529905
7.52.2 Net cash paid for acquiring subsidiaries in this period
Unit: Yuan
Amount
Cash and cash equivalents paid in this period for business
5537700
combinations incurred in this period
Including:
Weimeisi Shanghai 5537700
Minus: Cash and cash equivalents held by the subsidiary on
6194749
acquisition date
Including:
Weimeisi Shanghai 6194749
Plus: Cash and cash equivalents paid in this period for
business combinations incurred in previous period
Including:
Net cash paid for acquiring subsidiaries -657049
7.52.3 Net cash received from disposal of subsidiaries in this period
Unit: Yuan
Amount
Cash and cash equivalents received in this period from
9690000
disposal of subsidiaries in this period
Including:
Xinjiang Tianzhu 9690000
Minus: Cash and cash equivalents held by the subsidiary on
2451415
the date of loss of control
Including:
Xinjiang Tianzhu 2451415
Plus: Cash and cash equivalents received in this period from
disposal of subsidiaries in previous period
Including:
Net cash received from disposing subsidiaries 7238585
7.52.4 Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
1. Cash 1423080779 1612753600
822023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Ending balance Beginning balance
Including: Cash on hand 59243 47954
Bank deposits available for payment at any time 1423021536 1612705646
Other monetary funds available for payment at any time
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 1423080779 1612753600
7.53 Assets with ownership or use right restrictions
Unit: Yuan
Item Ending book value Reason for restriction
Monetary capital 9788446 L/C deposit housing fund etc.Accounts receivable 64860399 Pledge of short-term loans
Pledge of short-term loans long-term loans and
Fixed assets 294202438
long-term accounts payable
Intangible assets 166920626 Pledge of long-term accounts payable
Total 535771909 --
7.54 Monetary items of foreign currency
7.54.1 Monetary items of foreign currency
Ending balance at foreign Ending balance at RMB
Item Converted exchange rate
currency equivalent
Monetary capital -- -- 3246928
Including: USD 449279 7.2258 3246400
EUR 67 7.8771 528
HKD
Accounts receivable -- -- 50452445
Including: USD 5819882 7.2258 42053303
EUR 303383 7.8771 2389778
CAD 1107 5.4721 6058
GBP 656587 9.1432 6003306
Short-term borrowing -- -- 98451525
Including: USD 13625000 7.2258 98451525
EUR
HKD
----
7.54.2 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
832023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
currency of Chile Indomita Wine Group is Chilean Peso and the functional currency of
Australia Kilikanoon Estate is Australian Dollar.
8. Change of scope of consolidation
8.1 Business combination under non-common control
8.1.1 Business combination under non-common control incurred in this period
Unit: Yuan
Net profit
Income of
of
acquired
Proportion Basis for acquired
Name of Date of Cost of Method of party from
of Acquisition determining party from
acquired obtaining obtaining obtaining acquisition
obtaining date acquisition acquisition
party equity equity equity date to the
equity date date to the
end of the
end of the
period
period
Weimeisi February February 1 Actual
5537000 70% Cash -3000
Shanghai 1 2023 2023 control
8.1.2 Combination cost and goodwill
Unit: Yuan
Combination cost Amount
--Cash 5537700
--Fair value of non-cash assets
--Fair value of liabilities issued or undertaken
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity held before acquisition date on acquisition date 2373285
--Others
Total combination cost 7910985
Minus: Fair value share of identifiable net assets acquired 7910985
Amount of goodwill/combination cost less than the fair value share of identifiable net assets acquired
8.1.3 Identifiable assets and liabilities of acquired party on acquisition date
Unit: Yuan
Items Fair value on acquisition date Book value on acquisition date
Assets:
Monetary capital 6390637 6390637
Accounts receivables 44357 44357
Inventories 1356577 1356577
Fixed assets
Intangible assets
Other current assets 124023
842023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Items Fair value on acquisition date Book value on acquisition date
Liabilities:
Borrowings
Accounts payable 4609 4609
Deferred income tax liabilities
Net assets 7910985 7910985
Minus: Minority shareholders’ equity
Net assets acquired 7910985 7910985
8.1.4 Gains or losses arising from remeasuring equity held before acquisition date at fair
value
Unit: Yuan
Amount
Determination
transferred from
Gains or losses method and main
Book value of Fair value of other
arising from assumptions of
equity originally equity originally comprehensive
remeasuring fair value of
Name of acquired held before held before incomes related to
equity originally equity originally
party acquisition date acquisition date equity originally
held before held before
on acquisition on acquisition held before
acquisition date at acquisition date
date date acquisition date to
fair value on acquisition
investment
date
income
Weimeisi
23732852373285
Shanghai
8.2 Disposal of subsidiaries
Unit: Yuan
Difference
Amount
between disposal
Determination transferred
price and
Proportion Book Fair value Gains or method and from other
consolidated
of value of of losses main comprehensive
Basis for financial
Proportion Method remaining remaining assumptions remaining arising from incomes related
Name of Price of Date of loss determining statement level
of equity of equity equity on equity on equity on remeasuring of fair value to investment
subsidiary equity disposal of control date of loss share of the
disposal disposal the date the date the date remaining of remaining of original
of control subsidiary’s
of loss of of loss of of loss of equity at equity on the subsidiary
net assets
control control control fair value date of loss equity to
corresponding
of control investment
to disposal
profits and loss
investment
Xinjiang June 30 Transfer
12090000 100% Transfer 16547124
Tianzhu 2023 of control
9. Equity in other entities
9.1 Equity in subsidiaries
852023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
9.1.1 Constitution of enterprise group
Principal Proportion of
Registration Business
Name of subsidiary business shareholding Acquisition mode
place nature
location Direct Indirect
Acquired from a business
Etablissements Roullet Cognac
Cognac France Trading 100% combination under
Fransac (“Roullet Fransac”) France
non-common control
Acquired from a business
Navarre
Dicot Partners S.L (“Dicot”) Navarre Spain Sales 90% combination under
Spain
non-common control
Vi?a IndómitaS.A.Vi?a Dos
AndesS.A. and Bodegas Santiago Acquired by establishment
Santiago Chile Sales 85%Santa Alicia SpA. (“Chile Chile or investmentIndomita Wine Group”)
Kilikanoon Estate Pty Ltd Acquired from a business
Adelaide Adelaide(“Australia Kilikanoon Sales 97.5% combination underAustralia AustraliaEstate”) non-common control
Beijing Changyu Sales and
Acquired by establishment
Distribution Co. Ltd. Beijing China Beijing China Sales 100%
or investment
(“Beijing Sales”)
Yantai Yantai
Yantai Kylin Packaging Co. Acquired by establishment
Shandong Shandong Manufacturing 100%
Ltd. (“Kylin Packaging”) or investment
China China
Yantai Chateau Yantai Yantai
Acquired by establishment
Changyu-Castel Co. Ltd. Shandong Shandong Manufacturing 70%
or investment
(“Chateau Changyu”) (a) China China
Xianyang
Changyu (Jingyang) Wine Co. Xianyang Acquired by establishment
Shaanxi Manufacturing 90% 10%
Ltd. (“Jingyang Wine”) Shaanxi China or investment
China
Yantai Changyu Pioneer Wine Yantai Yantai
Acquired by establishmentSales Co. Ltd. (“Sales Shandong Shandong Sales 100%or investmentCompany”) China China
Langfang Development Zone
Langfang Langfang Acquired by establishment
Castel-Changyu Wine Co. Manufacturing 39% 10%
Hebei China Hebei China or investment
Ltd. (“Langfang Castel”)
Changyu (Jingyang) Wine Xianyang
Xianyang Acquired by establishmentSales Co. Ltd. (“Jingyang Shaanxi Sales 10% 90%Shaanxi China or investmentSales”) China
Langfang Changyu Pioneer
Langfang Langfang Acquired by establishment
Wine Sales Co. Ltd. Sales 10% 90%
Hebei China Hebei China or investment
(“Langfang Sales”)
Shanghai Changyu Sales and
Shanghai Acquired by establishment
Distribution Co. Ltd. Shanghai China Sales 100%
China or investment
(“Shanghai Sales”)
Beijing Changyu AFIP
Agriculture development Co. Miyun Beijing Miyun Acquired by establishment
Sales 100%Ltd. (“Agriculture China Beijing China or investmentDevelopment”)
Beijing Chateau Changyu
91.53 Acquired by establishment
AFIP Global Co. Ltd. Beijing China Beijing China Manufacturing
% or investment
(“AFIP”) (b)
Yantai Yantai
Yantai Changyu Wine Sales Acquired by establishment
Shandong Shandong Sales 90% 10%
Co. Ltd. (“Wines Sales”) or investment
China China
Yantai Changyu Pioneer Yantai Yantai
Acquired by establishment
International Co. Ltd. Shandong Shandong Sales 70% 30%
or investment
(“Pioneer International”) China China
862023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Principal Proportion of
Registration Business
Name of subsidiary business shareholding Acquisition mode
place nature
location Direct Indirect
Hangzhou Changyu Wine Hangzhou
Hangzhou Acquired by establishmentSales Co. Ltd. (“Hangzhou Zhejiang Sales 100%Zhejiang China or investmentChangyu”) China
Ningxia Changyu Grape
Yinchuan Ningxia Acquired by establishmentGrowing Co. Ltd. (“Ningxia Planting 100%Ningxia China China or investmentGrowing”)
Huanren Changyu National Benxi
Benxi Liaoning Acquired by establishment
Wines Sales Co. Ltd. Liaoning Sales 100%
China or investment
(“National Wines”) China
Liaoning Changyu Golden Benxi
Benxi Liaoning Acquired by establishment
Icewine Valley Co. Ltd. Liaoning Manufacturing 100%
China or investment
(“Golden Icewine Valley”) China
Yantai Development Zone
Yantai Yantai
Changyu Trading Co. Ltd. Acquired by establishment
Shandong Shandong Sales 100%(“Development Zone or investmentChina ChinaTrading”)
Beijing AFIP Meeting Center Miyun Beijing Miyun Acquired by establishment
Services 100%
(“Meeting Center”) China Beijing China or investment
Beijing AFIP Tourism and Miyun Beijing Miyun Acquired by establishment
Tourism 100%
Culture (“AFIP Tourism”) China Beijing China or investment
Changyu (Ningxia) Wine Co. Ningxia Acquired by establishment
Ningxia China Manufacturing 100%
Ltd. (“Ningxia Wine”) China or investment
Yantai Changyu Chateau Yantai Yantai
Wholesale and Acquired by establishmentTinlot Co. Ltd. (“Chateau Shandong Shandong 65% 35%retail or investmentTinlot”) China China
Xinjiang Chateau Changyu Shihezi
Shihezi Acquired by establishment
Baron Balboa Co. Ltd. Xinjiang Manufacturing 100%
Xinjiang China or investment
(“Chateau Shihezi”) China
Ningxia Chateau Changyu Yinchuan
Yinchuan Acquired by establishmentLongyu Co. Ltd. (“Chateau Ningxia Manufacturing 100%Ningxia China or investmentNingxia”) China
Shaanxi Chateau Changyu Xianyang
Xianyang Acquired by establishmentRena Co. Ltd. (“Chateau Shaanxi Manufacturing 100%Shaanxi China or investmentChang’an”) China
Yantai Changyu Wine
Yantai Yantai
Research & Development 92.25 Acquired by establishment
Shandong Shandong ManufacturingCentre Co. Ltd. (“R&D % or investmentChina ChinaCentre”) (c)
Benxi
Changyu (HuanRen) Wine Benxi Liaoning Wine-making Acquired by establishment
Liaoning 100%
Co. Ltd. (“Huan Ren Wine”) China project or investment
China
Shihezi
Xinjiang Changyu Sales Co. Shihezi Acquired by establishment
Xinjiang Sales 100%
Ltd. (“Xinjiang Sales”) Xinjiang China or investment
China
Yinchuan
Ningxia Changyu Trading Co. Yinchuan Acquired by establishment
Ningxia Sales 100%
Ltd. (“Ningxia Trading”) Ningxia China or investment
China
Shaanxi Changyu Rena Wine Xianyang
Xianyang Acquired by establishmentSales Co. Ltd. (“Shaanxi Shaanxi Sales 100%Shaanxi China or investmentSales”) China
Penglai Penglai
Penglai Changyu Wine Sales Acquired by establishment
Shandong Shandong Sales 100%
Co. Ltd. (“Penglai Wine”) or investment
China China
Laizhou Laizhou
Laizhou Changyu Wine Sales Sales 100% Acquired by establishment
Shandong Shandong
872023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Principal Proportion of
Registration Business
Name of subsidiary business shareholding Acquisition mode
place nature
location Direct Indirect
Co. Ltd. (“Laizhou Sales”) China China or investment
Francs Champs Participations Cognac Investment Acquired by establishment
Cognac France 100%
SAS (“Francs Champs”) France and trading or investment
Yantai Roullet Fransac Wine Yantai Yantai
Acquired by establishmentSales Co. Ltd. (“Yantai Shandong Shandong Sales 100%or investmentRoullet Fransac”) China China
Yantai Changyu Wine Sales Yantai Yantai
Acquired by establishmentCo. Ltd. (“Wine Sales Shandong Shandong Sales 100%or investmentCompany”) China China
Shaanxi Chateau Changyu Xianxin
Xianxin Acquired by establishment
Rena Tourism Co. Ltd. Shaanxi Tourism 100%
Shaanxi China or investment
(“Chateau Tourism”) China
Yantai Yantai
Longkou Changyu Wine Sales Acquired by establishment
Shandong Shandong Sales 100%
Co. Ltd. (“Longkou Sales”) or investment
China China
Yantai Changyu Cultural
Yantai Yantai
Tourism Development Co. Ltd. Acquired by establishment
Shandong Shandong Tourism 100%(“Changyu Cultural Tourism or investmentChina ChinaCompany”)
Yantai Changyu Wine Culture Yantai Yantai
Acquired by establishment
Museum Co. Ltd. Shandong Shandong Tourism 100%
or investment
(“Museum”) China China
Yantai Changyu Cultural Yantai Yantai
Acquired by establishment
Tourism Product Sales Co. Ltd.S handong Shandong Tourism 100%
or investment
(“Cultural Sales”) China China
Yantai Changyu Window of Yantai Yantai
Acquired by establishment
International Wine City Co. Shandong Shandong Tourism 100%
or investment
Ltd. (“Window of Wine City”) China China
Yantai Yantai
Yantai Chateau Koya Brandy Acquired by establishment
Shandong Shandong Manufacturing 100%
Co. Ltd. (“Chateau Koya”) or investment
China China
Changyu (Shanghai)
International Digital Shanghai Acquired by establishment
Shanghai China Sales 100%
Marketing Center Co. Ltd. China or investment
(“Digital Marketing”)
Tianjin Changyu Yixin Digital
Acquired by establishmentTechnology Co. Ltd. (“Tianjin Tianjin China Tianjin China Sales 51%or investmentYixin”)
Shanghai Changyu Yixin Hongkou
Hongkou
Digital Technology Co. Ltd. District Acquired by establishment
District Sales 51%
(“Shanghai Yixin”) Shanghai or investment
Shanghai China
China
Shanghai Changyu Guoqu
Shanghai Acquired by establishment
Digital Technology Co. Ltd. Shanghai China Sales 51%
China or investment
(“Shanghai Guoqu”)
Yantai Christon Catering Co. Yantai Yantai
Acquired by establishment
Ltd. (“Christon Catering”) Shandong Shandong Catering 100%
or investment
China China
Weimeisi (Shanghai) Hongkou
Hongkou Business combination
Enterprise Development Co. District
District Sales 100% under non-common
Ltd. (“Weimeisi Shanghai”) Shanghai
Shanghai China control
China
Explanation for difference between the proportion of shareholding and proportion of voting
882023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
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.(c) The Research Development & Manufacture Company is a joint venture established by the
Group and Agricultural Development Fund whose 92.25% of the shares were held by the
Group on June 30 2023. As stated in Note 7.29 the Group exercises full control over the
operation investment and financing policies of the Research Development & Manufacture
Company by contract arrangement. The contract arrangement will expire on May 22 2026.Up to June 30 2023 the remaining investment of the Agricultural Development Fund
accounted for 7.75% of the registered capital.
9.1.2 Important non-wholly-owned subsidiaries
Unit: Yuan
Shareholding Profit/loss attributable Other comprehensive Dividend declared to Balance of minority
Name of proportion of to minority income attributable to be distributed to shareholder’s
subsidiary minority shareholders in this minority shareholders minority shareholders interest at the end of
shareholders period in this period in this period period
AFIP 8.47% 56409393
Indomita Wine 15% -884056 1018109 57398559
Explanation for difference between the proportion of shareholding and proportion of voting
power of the minority shareholders in the subsidiaries: See details in Note 8.1.1.
892023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
9.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance Beginning balance
Name of subsidiary Non-current Current Non-current Total Non-current Current Non-current Total
Current assets Total assets Current assets Total assets
assets liabilities liabilities liabilities assets liabilities liabilities liabilities
AFIP 278777134 392916676 671693810 36970412 3089342 40059754 251902602 399165555 651068157 22424425 3020582 25445007
Indomita Wine 231117642 324071744 555189386 153663101 11311586 164974687 221192234 320233623 541425857 140793252 11311586 152104838
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Name of
subsidiary Total comprehensive Operating cash Total comprehensive Operating income Net profit Operating income Net profit Operating cash flow
income flow income
AFIP 116672301 6010906 6010906 7318097 88990033 -365257 -365257 1740771
Indomita Wine 76726600 -5893708 893680 13656192 100634284 4315754 -1029729 9000393
902023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
9.2 Transactions where share of owners’ equity in a subsidiary changes and the
subsidiary is still controlled
9.2.1 Explanation of changes in share of owners’ equity in a subsidiary
This Company has acquired 49% of the minority shareholders’ equity in the subsidiary
Icewine Valley in this period with a transfer price of 32746777 Yuan. After the completion
of acquisition this Company holds a 100% equity in Icewine Valley.
9.2.2 Impact of transactions on minority shareholders’ equity and owners’ equity
attributable to the parent company
Items Icewine Valley
Acquirement cost/disposal consideration
--Cash 32746777
--Fair value of non-cash assets
Total acquirement cost/disposal consideration 32746777
Minus: Net asset share of subsidiaries calculated based on
31655269
the proportion of equity acquirement/disposal
Difference
Including: Adjustment of capital reserves 1091508
Adjustment of surplus reserves
Adjustment of undistributed profits
9.3 Equity in joint ventures or associates
Summary financial information of unimportant joint ventures and associates
Unit: Yuan
Ending balance/ amount incurred in this Beginning balance / amount incurred
period in prior period
Joint ventures -- --
Total book value of investment 36846195 37970535
Total of the following items calculated
according to the shareholding ratio
-- Net profit -1124340 -798152
-- Other comprehensive income
-- Total comprehensive income -1124340 -798152
Associates:
Total book value of investment 1219317 3400850
Total of the following items calculated
912023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Ending balance/ amount incurred in this Beginning balance / amount incurred
period in prior period
according to the shareholding ratio
-- Net profit 191752 -123165
-- Other comprehensive income
-- Total comprehensive income 191752 -123165
10. 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 analyse the risks faced by the Group to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities.
10.1 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 2023 the Group’s maximum exposure to credit risk which will cause a
922023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
financial loss to the Group due to failure to discharge an obligation by the counterparties.In order to minimise the credit risk the Group has adopted a policy to ensure that all sales
customers have good credit records. According to the policy of the Group credit review is
required for clients who require credit transactions. In addition the Group continuously
monitors the balance of account receivable to ensure there’s no exposure to significant bad
debt risks. For transactions that are not denominated in the functional currency of the relevant
operating unit the Group does not offer credit terms without the specific approval of the
Department of Credit Control in the Group. In addition the Group reviews the recoverable
amount of each individual trade debt at each balance sheet date to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard the management of the
Group considers that the Group's credit risk is significantly reduced.Since the Group trades only with recognised and creditworthy third parties there is no
requirement for collateral. Concentrations of credit risk are managed by
customer/counterparty by geographical region and by industry sector. As at June 30 2023
26.5% of the Group trade receivables are due from top five customers (December 31 2022:
48.8%). There is no collateral or other credit enhancement on the balance of the trade
receivables of the Group.
10.2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering cash or another financial asset. The 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 realisable marketable
securities and adequate committed lines of funding from major financial institutions to meet
its liquidity requirements in the short and longer term.
10.3 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 2023 the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
932023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Unit: Yuan
June 30 2023 December 31 2022
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 1.7%-2.15% 228200000 2% - 2.25% 53200000
Financial liabilities ?
- Short-term loans 0.65% - 6.76% -230357784 0.65% - 6.76% -155774939
- Long-term loans (including the
1.50%-3.65%-82498031.50%-3.65%-183331680
portion due within one year)
- Long-term payable (including the
1.20%-420000001.20%-64000000
portion due within one year)
- Lease liabilities (including the
4.65%-1179027464.65%-128514033
portion due within one year)
Total -170310333 -478420652
Variable rate instruments:
Unit: Yuan
June 30 2023 December 31 2022
Item
Effective interest rate Amounts Effective interest rate Amounts
Financial assets
- Monetary capital 0.3%-1.8225% 1433369550 0.25% - 1.61% 1598206161
Financial liabilities
- Short-term loans 1-year LPR-05 -100000000 1-year LPR-05 -200000000
- Short-term loans 1.81% - 2.54% -16000832 1.81% - 2.54% -33603542
- Long-term loans (including those
2.85%-3.35%?-1266027352.85%-3.35%?-3011228
due within one year)
- Long-term loans (including those
BBSY+1.10% -45439697 BBSY+1.10% -44781100
due within one year)
Total 1145326286 1316810291
(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 2023 based on assumptions above it is estimated that a general increase of 50
basis points in interest rates with all other variables held constant would decrease the
Group’s equity by RMB 540081 Yuan (2022: RMB 1055235 Yuan) and net profit by RMB
540081 Yuan (2022: RMB 1055235 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
942023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
estimated as an annualised impact on interest expense or income of such a change in interest
rates.
10.4 Foreign currency risk
In respect of cash at bank and on hand accounts receivable and payable short-term loans denominated
in foreign currencies other than the functional currency the Group ensures that its net exposure is kept
to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address
short-term imbalances.
(1) As at June 30 2023 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 2023 December 31 2022
Item Balance at foreign Balance at RMB Balance at foreign Balance at RMB
currency equivalent currency equivalent
Monetary capital 3246928 76748
- USD 449279 3246400 10922 76068
- EUR 67 528 67 494
- HKD 208 186
Short-term borrowings 98451525 95792132
- USD 13625000 98451525 13750000 95792132
(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 2023 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 2023
USD 4760256 4760256
EUR -26 -26
Total 4760230 4760230
December 31 2022
USD 3589352 3589352
EUR -19 -19
HKD -7 -7
Total 3589326 3589326
952023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30 2023
would have had the equal but opposite effect to the amounts shown above on the basis that all
other variables remained constant.
11. 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 2023.
12. Related parties and related transactions
12.1 Particulars of the parent company of the Company
Proportion of Proportion of
Name of parent shareholding of the voting powers of
Registration place Business nature Registered capital
company parent company in the parent company
the Company in the Company
Manufacturing
Changyu Group Yantai City 50000000 50.40% 50.40%
industry
From January to June 2023 there was no fluctuation in the registered capital of the parent
company and its share in equity interest and voting right.
12.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 8.
12.3 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 entity Relationship with the Company
L&M Holdings Joint venture of the Group
Chengdu Yufeng Associates of the Group
Guolong Wine Industry Associates of the Group
12.4 Particulars of other related parties
Name of other related parties Relationship between other related parties and the Company
Yantai God Horse Packing Co. Ltd. (“God Horse Packing”) A company controlled by the same parent company
962023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Name of other related parties Relationship between other related parties and the CompanyYantai Zhongya Medical Health Wine Co. Ltd. (“Zhongya Enterprise significantly influenced by key managementMedical”) personnel of this Company
Mirefleurs Subsidiaries of the joint ventureCHATEAU DE LIVERSAN (“LIVERSAN”） Subsidiaries of the joint venture
12.5 Related transactions
12.5.1 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 40209713 40568193
Zhongya Medical Purchasing goods 13162 17879
List of selling goods/providing services
Unit: Yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
Zhongya Medical Selling goods 1929485 3027005
God Horse Packing Selling goods 7414 31576
Chengdu Yufeng Selling goods 190498 850304
Weimeisi Shanghai Selling goods 305328
Guolong Wine Industry Selling goods 3687055
The price of transactions between the Group and the related parties are based on the
negotiated price.
12.5.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
12.5.3 Leasing with related parties
The Group as a lessor:
Unit: Yuan
Rental income recognized in Rental income recognized in
Name of the lessee Type of leased assets
this period prior period
God Horse Packing Office building and plant 774705 774705
Zhongya Medical Office building 295238 295238
972023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
The Group as a lessee:
Unit: Yuan
Rental expenses for Variable lease
short-term leases and payments not
Interest expenses on
leases of low-value included in the Right-of-use assets
Rent paid lease liabilities
assets of simplified measurement of increased
assumed
Name of Type of treatment (if lease liabilities (if
the lessor leased assets applicable) applicable)
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
incurred incurred incurred incurred incurred incurred incurred incurred incurred incurred
in this in prior in this in prior in this in prior in this in prior in this in prior
period period period period period period period period period period
Office
building
Changyu
plant 7480362 5980362 1103983 935678
Group
commercial
building
12.5.4 Related guarantee
Nil
12.5.5 Inter-bank borrowing and lending of related parties
Nil
12.5.6 Asset transfer and debt recombination of related parties
Nil
12.5.7 Other related transactions
Unit: Yuan
Related party Item Amount incurred in this period Amount incurred in prior period
Changyu Group Trademark use fee 11320305 10512100
The price of transactions between the Group and the related parties are based on the
negotiated price.
12.6 Accounts receivable and payable of the related parties
982023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
12.6.1 Accounts receivable
Unit: Yuan
Ending balance Beginning balance
Item Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts receivable Zhongya Medical 2247331 4045 2627473 8091
Accounts receivable Yantai Guolong 200000 616
Other current assets Changyu Group 108931118 120930641
12.6.2 Accounts payable
Unit: Yuan
Item Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 16008923 36600233
Accounts payable Zhongya Medical 813204 5365862
Accounts payable Changyu Group 19434600 19434600
Accounts payable Chengdu Yufeng 143659
Liabilities of contracts Chengdu Yufeng 19
Liabilities of contracts Zhongya Medical 240
Other payable God Horse Packing 471869
13. Share-based payment
13.1 Overall situation of share-based payment
Unit: Yuan
Total amount of various equity instruments granted by
6785600
the Company in this period
Total amount of various equity instruments exercised
by the Company in this period
Total amount of various equity instruments
invalidated by the Company in this period
Range of exercise prices for equity issued by the
Company at the end of the period and the remaining
term of contract
6785600 shares of restricted stock were issued with a grant date
of June 26 2022 and the exercise price of the restricted stock was
Range of exercise prices for other equity instruments
15.24 Yuan per share. As of the end of this period there were
issued by the Company at the end of the period and
2035700 shares with a remaining maturity of 12 months
the remaining term of contract
2035700 shares with a remaining maturity of 24 months and
2714200 shares with a remaining maturity of 36 months.
13.2 Equity-settled share-based payments
992023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Unit: Yuan
Method for determining the fair value of equity instruments
Restricted stock: stock price on grant date minus grant price
on 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 previous estimate
Accumulated amount of equity-settled share-based payments
671300
included in capital reserve
Total amount of expenses recognized as equity-settled
671300
share-based payments in this period
14. Commitment and contingency
14.1 Significant commitment
Unit: Yuan
Item Ending balance Beginning balance
Making long-term asset commitments 30598000 45698000
14.2 Contingency
As of the balance sheet date the Group didn’t have any contingency to be disclosed.
15. Matters after balance sheet
15.1 Important non-adjusting events
According to the authorization of 2022 annual shareholders’ meeting the Company held its
first interim meeting of directors and first interim meeting of supervisors on June 26 2023
and reviewed and approved the Proposal on Matters Related to Adjustment of 2023 Restricted
Stock Incentive Plan and the Proposal on Granting Restricted Stock to the Incentive Objects
of 2023 Restricted Stock Incentive Plan granting 6785600 shares of restricted common
stock to 203 incentive objects. As of July 20 2023 the total amount of funds raised by the
incentive objects was RMB 103411919 Yuan and the Company’s targeted issuance of
A-share common stocks to the incentive objects has been listed.
16. Other important matters
Nil
1002023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
17. Notes on major items in financial statements of the parent company
17.1 Accounts receivable
17.1.1 Accounts receivables classified disclosure
Unit: Yuan
Nature Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Book Book
Proportion Proportion
Amount Proportion Amount value 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 provision
2033697100%36610.18%20300362301505100%0%2301505
accrued on a combined
basis
Total 2033697 100% 3661 0.18% 2030036 2301505 100% 0% 2301505
Disclosed by age
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 2033697
1-2 years
2-3 years
More than 3 years
Total 2033697
17.1.2 Provision for bad debts accrued withdrawn or transferred back in this period
Particulars of provision for bad debts accrued in this period:
Unit: Yuan
Change amount in this period
Beginning
Category withdrawn or Cancelled after Ending balance
balance Accrued
transferred back verification
Bad-debt provision
accrued on a combined 3661 3661
basis
Total 3661 3661
1012023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
17.1.3 Accounts receivable actually cancelled after verification in this period
Nil
17.1.4 Accounts receivable collected by the borrower of top 5 units ranked by the ending
balance
Unit: Yuan
Ending balance of accounts Proportion in the total ending Ending balance of bad-debts
Unit
receivable balance of accounts receivable provision
Zhongya Medical 2033697 100% 3661
Total 2033697 100%
17.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
17.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
17.2 Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Interest receivable
Diveidens receivable 103544695 250000000
Other receivables 401380464 470176320
Total 504925159 720176320
17.2.1 Diveidens receivable
Unit: Yuan
Item (or the invested unit) Ending balance Beginning balance
Dividends receivable from subsidiaries 103544695 250000000
Total 103544695 250000000
17.2.2 Other receivables
17.2.2.1 Particulars of other receivables classified by nature
1022023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Unit: Yuan
Nature Ending book balance Beginning book balance
Accounts receivable from subsidiaries 399716851 470128362
Others 1663613 47958
Total 401380464 470176320
17.2.2.2 Disclosed by age
Unit: Yuan
Age Ending balance
Within 1 year (including 1 year) 401275991
1-2 years
2-3 years 104473
More than 3 years
Total 401380464
17.2.2.3 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
17.2.2.4 Other accounts receivable actually cancelled after verification in this period
Nil
17.2.2.5 Other accounts receivable collected by the borrower of top 5 units ranked by
the ending balance
Unit: Yuan
Percentage in the 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 290435378 Within 1 year 72.40%
from subsidiaries
Accounts receivable
Atrio Group 80588948 Within 1 year 20.10%
from subsidiaries
Accounts receivable
Digital marketing 15811981 Within 1 year 3.90%
from subsidiaries
Accounts receivable
Kilikanoon Estate 7455390 Within 1 year 1.90%
from subsidiaries
Accounts receivable
Castel 790482 Within 1 year 0.20%
from subsidiaries
Total 395082179 98.50%
1032023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
17.2.2.6 Accounts receivable related to governmental subsidy
Nil
17.2.2.7 Other accounts receivable derecognized due to transfer of financial assets
Nil
17.2.2.8 Other accounts receivable transferred and included in assets and liabilities
Nil
17.3 Long-term equity investment
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment in subsidiaries 7684192789 7684192789 7703535027 7703535027
Investment in associated enterprises
23183512318351
and joint ventures
Total 7684192789 7684192789 7705853378 7705853378
17.3.1 Investment in subsidiaries
Unit: Yuan
Increase and decrease in this period Ending
Beginning Ending
balance of
Invested unit balance (book Increase in Decrease in Provision for balance (book
Others provision for
value) investment investment impairment accrued value)
impairment
Xinjiang Tianzhu 60000000 60000000
Kylin Packaging 23176063 23176063
Changyu Chateau 28968100 28968100
Pioneer International 3500000 3500000
Ningxia Growing 36573247 36573247
National Wine 2000000 2000000
Icewine Valley 30440500 32746777 63187277
AFIP 588389444 588389444
Sales Company 7200000 7200000
Langfang Sales 100000 100000
1042023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Increase and decrease in this period Ending
Beginning Ending
balance of
Invested unit balance (book Increase in Decrease in Provision for balance (book
Others provision for
value) investment investment impairment accrued value)
impairment
Langfang Castel 19835730 19835730
Wine Sales 4500000 4500000
Shanghai Marketing 1000000 1000000
Beijing Marketing 850000 850000
Jingyang Sales 100000 100000
Jingyang Wine 900000 900000
Ningxia Wine 222309388 222309388
Ningxia Chateau 453463500 453463500
Chateau Tinlot 212039586 212039586
Shihezi Chateau 812019770 812019770
Chang’an Chateau 803892258 803892258
R&D Company 3288906445 3288906445
Huanren Wine 22200000 22200000
Wine Sales Company 5000000 5000000
Francs Champs 236025404 236025404
Marques del Atrio 233142269 233142269
Indomita Wine 274248114 274248114
Kilikanoon Estate
129275639129275639
Australia
Digital Marketing 1000000 1000000
Changyu Cultural
9247957092479570
Tourism Company
Chateau Koya 110000000 110000000
Weimeisi (Shanghai) 7910985 7910985
Total 7703535027 40657762 60000000 7684192789
1052023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
17.3.2 Investment in associates
Unit: Yuan
Increase and decrease in this period
Investment Ending
Beginning Ending
gains and
balance Other Other Declared Provision
balance of
losses balance
Invested unit Increase in Decrease in comprehensive changes cash for provision
(book recognized Others (book
investment investment income in dividend impairment for
value) under the adjustment equity or profit accrued value)
equity impairment
method
Weimeisi
2318351237328554934
Shanghai
Total 2318351 2373285 54934
17.4 Operating income and operating cost
17.4.1 Details of operating income
Unit: Yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Income
Main business 211221867 173868643 200506811 166176180
Other business 30745229 27044675 29080332 26938064
Total 241967096 200913318 229587143 193114244
Including: Income from contracts 240897153 200209954 228517200 192410880
Income from house rents 1069943 703364 1069943 703364
17.4.2 Situation of income from contracts
Unit: Yuan
Contract classification Amount incurred in this period Amount incurred in prior period
Type of merchandise
- Alcoholic beverage 211221867 200506811
- Others 29675286 28010389
Classified by the time of merchandise
transfer
- Revenue recognized at a point in time 240897153 228517200
1062023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
17.5 Investment income
Unit: Yuan
Amount incurred in Amount incurred in
Item
this period prior period
Income from long-term equity investment by cost method 178935084 328316580
Income from long-term equity investment by equity method 54934 -26539
Investment income from disposal of long-term equity investment -29910000
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 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 149080018 328290041
18. Supplementary materials
18.1 List of non-current profits/losses in this period
Unit: Yuan
Item Amount Remark
Profits/losses on disposal of non-current assets 16228006
Tax return deduction and exemption approved beyond the authority or
without formal approval document
Governmental subsidy included in the current profits/losses (excluding those
closely related to the enterprise business and enjoyed in accordance with the 28971185.00
unified standard quota or ration of the state)
Payment for use of funds by non-financial enterprises included in the current
profits/losses
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
Profits/losses on exchange of non-monetary assets
Profits/losses on entrusting other people to make investment or manage assets
Asset impairment provision accrued due to force majeure such as natural
disaster
Profits/losses on debt restructuring
1072023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
Item Amount Remark
Enterprise reorganization expenses such as staffing expenditure and
integration expenses etc.Profits/losses on those beyond the fair value generated from transactions with
unfair transaction price
Current net profits/losses on subsidiaries acquired from a business
combination under common control from the beginning to the consolidation
date
Profits/losses on contingencies irrelated to the normal business of the
Company
Profits/losses on changes of fair value of tradable financial assets derivative
financial assets tradable financial liabilities and derivative financial
liabilities and investment income from disposal of tradable financial assets
derivative financial assets tradable financial liabilities derivative financial
liabilities and other investment in creditor's rights excluding effective
hedging operations relevant to the normal business of the Company
Transfer-back of accounts receivable with single impairment test and
provision for impairment of contract assets
Profits/losses on external entrusted loans
Profits/losses on fair value changes of investment real estate with fair value
mode for follow-up measurement
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
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items -332706
Other profits/losses conforming to the definition of non-current profits/losses
Minus: Influenced amount of income tax 4785509
Influenced amount of minority shareholders’ equity 833515
Total 39247461 --
18.2 Return on net assets and earnings per share
Earnings per share
Weighted average return on
Profit incurred in this period Basic EPS Diluted EPS
net assets
(Yuan/Share) (Yuan/Share)
Net profit attributable to common
3.40%0.530.53
shareholders of the Company
Net profit attributable to common
shareholders of the Company deducting 3.03% 0.47 0.47
non-incidental profits/losses
1082023 Semiannual Report of Yantai Changyu Pioneer Wine Co. Ltd.
18.3 Accounting data difference under domestic and foreign accounting standard
18.3.1 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 prior
Ending balance Beginning balance
this period period
In accordance with the
3635694363584596031064588022610579053733
Chinese accounting standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 363569436 358459603 10645880226 10579053733
standard
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