Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Yantai Changyu PioneerWine Co. Ltd.2026 Semi-annual Report
August 21 2026
1Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Table of Contents
I、Important Notice Table of Contents and Definitio....3
II、Brief Introduction for the Company and Main Fin....6
III、Discussion and Analysis of Management Team ...... 9
IV、Corporate Governance Environmental and Social R.. 27
V、 Major issues .................................... 29
VI、 Changes in Shares and the Shareholders' Situat.. 36
VII、 Related Situation of Bonds .....................43
VIII、Financial Report ...............................43
2Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
I. Important Notice Table of Contents and Definition
The board of directors directors and senior executives of the Company guarantee the
truthfulness accuracy and completeness of the contents contained in the semi-annual report
with no false records misleading statements or significant omissions and undertake
individual and joint legal liabilities.Mr. Hongjiang ZHOU (Person in charge of the Company) and Ms. Cuimei GUO (Person in
charge of accounting work Person in charge of accounting organ & Accountant in charge)
assure the truthfulness accuracy and completeness of the financial report in the semi-annual
report.Except for the following directors other directors attended this board meeting for reviewing
this semi-annual report in person.Name of director not attending Position of director not attending Reason of not attending
Name of entrustee
the meeting personally the meeting personally the meeting personally
Yan XU Independent Director On a business trip Zhuquan WANG
Marco Giovanni Ferrari Director On a business trip Claudio Michele d'Agostino
Forward-looking statements such as future plans and development strategies covered in this
report do not constitute a substantial commitment of the Company to investors. Investors are
advised to pay attention to investment risks.Regarding significant risks that the Company may face during the business process please
refer to “10. Risks and response measures” in “III Discussion and Analysis of ManagementTeam” in this report. Investors are suggested to read carefully and pay attention to investment
risks.The Company has no plan to distribute cash dividends and bonus shares and capital reserve
will not be transferred to equity.
3Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Reference Documents
(1) The original of 2026 Semi-annual Report autographed by the Chairman.
(2) The Financial Statements autographed and sealed by the Chairman Chief Accountant and
Accountants in Charge.
(3) The Prospectus and Public Offering Announcement for Stock B in 1997; The Prospectus
and The Shares' Change & Public Offering Announcement for Stock A in 2000.
(4) The originals of all documents and announcements that the Company made public during
the report period in the newspapers designated by China Securities Regulatory Commission.
4Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Definition
Definition Item Refers to Definition Content
Company/The Company Refers to Yantai Changyu Pioneer Wine Co. Ltd.Changyu Group/Controlling Shareholder Refers to Yantai Changyu Group Co. Ltd.CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
KPMG Huazhen Refers to KPMG Huazhen LLP (Limited Liability Partnership)
Deloitte Touche Tohmatsu CPA Refers to Deloitte Touche Tohmatsu Certified Public Accountants LLP
CNY Refers to Chinese Yuan
5Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
II. Brief Introduction for the Company and Main Financial Indicators
1. Company's information
Stock Abbreviation Changyu A Changyu B Stock Code 000869，200869
Stock Abbreviation after Alteration —
Place of Stock Listing Shenzhen Stock Exchange
Legal Name in Chinese 烟台张裕葡萄酿酒股份有限公司
Abbreviation of Chinese Name 张裕
Legal Name in English YANTAI CHANGYU PIONEERWINE COMPANY LIMITED
Abbreviation of English Name CHANGYU
Legal Representative Hongjiang ZHOU
2. Contact person and information
Secretary of the Board of Directors Authorized Representative of Securities Affairs
Name Jianxun JIANG Tingguo LI
Address 56 Dama Road Yantai Shandong China 56 Dama Road Yantai Shandong China
Tel. 0086-535-6602761 0086-535-6633656
Fax. 0086-535-6633639 0086-535-6633639
E-mail jiangjianxun@changyu.com.cn stock@changyu.com.cn
3. Other information
1) Contact information of the Company
Whether there is any change in the Company's registered address office address
corresponding postcode website address and email address during the report period
□Applicable ?Inapplicable
There is no change in the Company's registered address office address corresponding
postcode website address and email address during the report period. Please refer to 2025
Annual Report for detailed information.
2) Information disclosure and filing location
Whether there is any change in information disclosure and filing location during the report
period
□Applicable ?Inapplicable
There is no change in the name of the newspaper for information disclosure the address of
the website designated by the China Securities Regulatory Commission for publishing the
semi-annual report and the filing location of the Company's semi-annual report selected by
the Company during the report period. Please refer to 2025 Annual Report for detailed
information.
6Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
3) Other relevant information
Whether there is any change in other relevant information during the report period
□Applicable ?Inapplicable
4. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of
previous fiscal years.?Yes ?No
During the report In the same period More or less than the same
Item
period of last year period of last year (%)
Operating revenue (CNY) 1572704753 1470576177 6.94%
Net profit attributed to shareholders of the listed
140515805185597142-24.29%
company (CNY)
Net profit attributed to shareholders of the listed
company after deducting non-recurring profits 132958779 172159827 -22.77%
and losses (CNY)
Net cash flows from operating activities (CNY) 418235893 239421128 74.69%
Basic earnings per share (CNY/share) 0.21 0.28 -25%
Diluted earnings per share (CNY/share) 0.21 0.28 -25%
Weighted average return on equity 1.35% 1.73% -0.38%
At the end of this At the end of last More or less than the end of
Item
report period year last year (%)
Total assets (CNY) 11883028631 12050601981 -1.39%
Net Assets attributed to shareholders of the
1027682457110347247577-0.68%
listed company (CNY)
5. Differences in accounting data under PRC accounting standards and international
accounting standards
1) Differences of net profit and net asset in the financial report disclosed according to
both international accounting standards and PRC accounting standard
□Applicable ?Inapplicable
There are no differences for net profit and net assets in the financial report disclosed
according to both international accounting standards and PRC accounting standards during
the report period.
2) Differences of net profit and net asset in the financial report disclosed according to
both foreign accounting standards and PRC accounting standards
□Applicable ?Inapplicable
There are no differences of net profit and net asset in the financial report disclosed according
to both foreign accounting standards and PRC accounting standards during the report period.
7Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
6. Item and amount of non-recurring gains and losses
?Applicable ?Inapplicable
Unit：CNY
Item Amount Explanation
Profits and losses on disposal of non-current assets (including the write-off part of the
38966-
provision for asset impairment has been made)
Government grants included in the current profits and losses(except for those recurring
government grants that are closely related to the entity's operation in line with related 8354311 -
regulations and have proper basis of calculation)
Other non-operating income and expenditure besides above-mentioned items 2420717 -
Less: Amount affected by income tax 2592122 -
Amount affected by minority equity (after tax) 664846 -
Total 7557026 -
Specific situation of other gains and losses projects conforming to the definition of
non-recurring profit and loss
□Applicable ?Inapplicable
There does not exist specific situation of other profit and loss items conforming to the
definition of non-recurring profit and loss.Explanation for regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company's Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
□Applicable ?Inapplicable
There is no situation regarding the non-recurring profit and loss specified in the Explanatory
Announcement on Public Company's Information Disclosure No.1- Non-recurring Profit and
Loss as recurrent profit and loss
8Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
III. Discussion and Analysis of Management Team
1. Main businesses during the report period
During the report period the Company's main business was production and operation of wine
and brandy.The Company need to comply with the disclosure requirements of “Food and LiquorManufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
1) Situation of the industry in which the Company operates
During the report period the Company's main business was production and operation of wine
and brandy thus providing domestic and foreign consumers with healthy and fashionable
alcoholic drinks. Compared with earlier stage there were no significant changes happened to
the Company's main business. The wine industry that the Company involved in was still in
growth stage. Being affected by many factors in recent years the competition in domestic
wine market was fierce. However seen from the long term the Company believes that the
existing consumption concept might change with the increase of people's income level and
their pursuit of a relaxed romantic and healthy lifestyle. More domestic wine would be drunk
by people and wine would enter more and more household consumption. The situation of
current low average consumption of domestic wine would gradually improve. The Company
was at the forefront in the domestic wine market and was significantly ahead of major
domestic competitors.
2) License obtained
Food Food production
Producer name Obtaining time Obtaining method
category license number
Yantai Changyu Pioneer Wine Co. Approval from
Alcohol 2021.06.01 SC11537060100050
Ltd. government authority
Beijing Chateau Changyu AFIP Approval from
Alcohol 2022.08.22 SC11511280920745
Global Co. Ltd. government authority
Liaoning Changyu Golden Icewine Approval from
Alcohol 2021.03.25 SC11521052200370
Valley Co. Ltd. government authority
Ningxia Changyu Longyu Estate Approval from
Alcohol 2018.01.25 SC11564010500657
Co. Ltd. government authority
Xinjiang Chateau Changyu Baron Approval from
Alcohol 2017.08.25 SC11565900100392
Balboa Co. Ltd. government authority
Yantai Chateau Changyu-Castel Alcohol 2021.06.08 Approval from SC11537063600172
9Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Co. Ltd. government authority
Shaanxi Changyu Chateau Longue Approval from
Alcohol 2020.10.19 SC11561040400532
Chanson Co. Ltd. government authority
Yantai Chateau Koya Brandy Co. Approval from
Alcohol 2021.01.11 SC11537063601165
Ltd. government authority
3) Explanation for other significant events
During the report period there did not exist the trademark ownership dispute food quality
issue or food safety incident etc. that had a significant impact on the Company.Brand operation
The Company's products were divided into two series: wine and brandy. For wine main
brands included Changyu Longyu Noble Dragon AFIP Kilikanoon Golden Icewine Valley
Longue Chanson Baron Balboa Donelly Long Tailed Cat Commander Bear Grappie
ATRIO IWCC Vermouth and so on. For Brandy main brands included Koya Liquan
Mminni Pagese Unicorn Roullet Fransac and so on.Major sales mode
The Company's main sales mode was the distribution mode and main sales channel was
offline sales that is the Company's products were distributed to sales terminals through
approximately 5000 distributors at home and abroad and ultimately provided to consumers.Distribution mode
?Applicable ?Inapplicable
* Situation of change in the number of distributors is shown as follows.At the beginning of Increased number during At the end of the
Region
the report period the report period report period
Eastern China 2290 62 2352
South China 581 4 585
Central China 381 -8 373
North China 323 -5 318
Northwest China 157 -8 149
Southwest China 420 3 423
Northeast China 280 4 284
HongKong MacaoTaiwan China and overseas 796 110 906
Total 5228 162 5390
* Sales information of the Company’s top 5 distributors during the report periodNo. Customer name Sales amount (CNY） Proportion in total sales（%）
1 THE CO-OP UK 20320423 1.29%
2 Shanghai Muge Trading Co. Ltd. 18076847 1.15%
10Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
3 Beijing JD Century Information Technology Co. Ltd. 17729971 1.13%
4 Shenzhen Changyuexin Trading Co. Ltd. 17179694 1.09%
5 DIA RETAIL ESPA?A S.A. 16880116 1.07%
Total -- 90187051 5.73%
The ratio of sales in self-owned exclusive shop exceeds 10%
□Applicable ?Inapplicable
Sales of online direct sales
?Applicable ?Inapplicable
First half of 2026 First half of 2025
Sales model Operating income Operating cost Operating income Operating cost
Gross margin Gross margin
(CNY) (CNY) (CNY) (CNY)
Distribution 1270312869 529242951 58.34% 1167253176 472711388 59.50%
Direct sales 302391884 125472448 58.51% 303323001 120094870 60.41%
Total 1572704753 654715399 58.37% 1470576177 592806258 59.69%
The change in sales prices of major products accounting for more than 10% of total operating
income in current report period exceeds 30% compared with those in last report period
□Applicable ?Inapplicable
Procurement mode and procurement content
Unit: CNY
Amount of major
Procurement mode Procurement content
procurement contents
Qualitative and price comparison Raw materials including grape/bulk wine 239130438
Invitation for bids / qualitative and price comparison Packaging materials 171578245
Invitation for bids / qualitative and price comparison Brewing materials 11353639
Invitation for bids / qualitative and price comparison Goods and materials for vineyard 136277
Contract Fuel and power 13368713
Qualitative and price comparison Other alcoholic products and derivatives 2892772
Amount of purchasing raw materials from cooperatives or farmers exceeds 30% of total
procedure amount
□Applicable ?Inapplicable
The year-on-year change in the price of major outsourced raw materials exceeds 30%
□Applicable ?Inapplicable
Major production mode
The production mode of the Company is self-produce.Commissioned processing and production
□Applicable ?Inapplicable
11Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Major components of operating costs
* Classification of sector
Unit: CNY
First half of 2026 First half of 2025 Year-on-year
Sector Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 282232769 44.79% 267451974 46.89% 5.53%
Packing material 174235825 27.65% 140956522 24.71% 23.61%
Liquor
Wages 22012122 3.49% 15526190 2.72% 41.77%
and
alcoholic Manufacturing 110775284 17.58% 97986705 17.18% 13.05%
beverage expenses
Contract
409022506.49%484833128.50%-15.64%
performance costs
* Classification of product
Unit: CNY
First half of 2026 First half of 2025 Year-on-year
Product Project Proportion in the Proportion in the increase or
Amount Amount
operating cost (%) operating cost (%) decrease (%)
Blending liquor 207481662 46.00% 189873882 46.52% 9.27%
Packing material 122251181 27.10% 100999372 24.75% 21.04%
Wages 16830327 3.73% 11392118 2.79% 47.74%
Wine Manufacturing
7675829217.02%7244174917.75%5.96%
expenses
Contract
277341356.15%334266968.19%-17.03%
performance costs
Blending liquor 74751107 41.74% 77578092 47.81% -3.64%
Packing material 51984645 29.03% 39957149 24.62% 30.10%
Wages 5181795 2.89% 4134072 2.55% 25.34%
Brandy Manufacturing
3401699218.99%2554495615.74%33.17%
expenses
Contract
131681157.35%150566169.28%-12.54%
performance costs
12Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Yield and inventory
Year-on-year increase or
Sector/Product Item Unit First half of 2026 First half of 2025
decrease (%)
Sales Ton 35627 33812 5.37%
Liquor and
Yield Ton 29164 27411 6.39%
alcoholic beverage
Inventory Ton 19498 20451 -4.66%
Sales Ton 23965 23336 2.70%
Wine Yield Ton 20409 20525 -0.56%
Inventory Ton 13474 13610 -1.00%
Sales Ton 11662 10476 11.32%
Brandy Yield Ton 8754 6886 27.12%
Inventory Ton 6023 6841 -11.95%
2. Analysis of core competitiveness
Compared with the participants in the arena of the Chinese wine competition sector the
Company owns following advantages:
Firstly the Company has a large brand influence. Main brands used have a long history.“Changyu”“Noble Dragon”and“AFIP”are all “China famous brands” that have strong
influence and good reputation.Secondly the Company has set up a nationwide marketing network. The Company has
formed a “three-level” marketing network system mainly composed of the Company's
salesmen and distributors and the online sales platform has had a certain scale and strong
influence owing strong marketing ability and market exploitation ability.Thirdly the Company has strong scientific prowess and a product R&D system. Relying on
the country's “State-level Wine R&D Center” the Company has owned powerful winemaker
team mastered advanced winemaking technology and production processes and had strong
product innovation capacity and perfect quality control system.Fourthly the Company is in possession of a lot of grape-growing bases that are compatible
with its development requirements. The Company has developed a great deal of vineyards in
the most suitable areas for wine grape growing such as Shandong Ningxia and Xinjiang and
its subsidiary overseas enterprises also own matching grape bases in local area making the
overall scale and structure generally meet the Company's needs for future development.Fifthly products in high medium and low-grade as well as varieties and categories are all
complete. Over 100 varieties of series products such as wine brandy and sparkling wine
covers various grades including high medium and low-grade which can meet different
13Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
consumer groups' demands. The Company has taken the dominant status in the domestic wine
industry after many years' development and has comparative advantages in the future
competition.Sixthly the Company has a relatively perfect motivation system. Most of Company's
employees indirectly hold the Company's equity through controlling shareholders. There are
high consistency between employee benefits and shareholders benefits in favor of motivating
employees to create value for shareholders.Seventhly the Company has set up flexible and efficient decision-making mechanism. The
Company's core management team always maintains a working style of unity and pragmatic
and flexible and efficient decision-making mechanism which makes the Company can deal
with market changes more calmly.Eighthly the global production capacity layout has been basically completed. The Company
has completed production capacity layout in China France Chile Spain Australia and other
major wine producing countries in the world enabling making better use of global
high-quality raw material resources capital talents and advanced production processes and
technologies to provide consumers with diversified quality products and better serve
consumers.Based on the above reasons the Company has formed relatively strong core competence and
will maintain a relatively dominant position in the future predictable market competition.
3. Analysis in main business
Summarization
During the report period the domestic wine market still maintained a downward trend.Market demand was seriously insufficient and competition was extremely fierce. The
profitability of wine enterprises further declined. The market share of wine in alcoholic
products became smaller and smaller. Coupled with the squeeze from other advantageous
wine types the development trend of the industry remained at a low level and there were no
obvious signs of a rebound. Facing a severe market environment the Company adhered to a
consumer-oriented approach intensified marketing reforms strictly controlled various
expenses actively engaged in product and marketing innovation and strove to explore new
sales channels and emerging markets achieving certain results.First adhere to a consumer-oriented approach actively guide and cultivate the wine
consumption population create wine consumption scenarios and strive to expand the wine
market scale. During the reporting period the Company significantly adjusted and improved
the sales division system deepened the “marketing” and “sales” separation reform shortened
the distance between the Company and consumers laying a solid foundation for better
serving consumers; further focused on products markets and marketing actions based on
different market development stages implement targeted marketing strategies. Some
14Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
“decisive battle” markets and innovative products such as Long Tailed Cat have achieved
breakthrough progress. The sales revenue of key products has steadily increased. Initiating or
leveraging marketing events such as Yun Lin's endorsement for Long Tailed Cat Macron's
praise for Changyu Longyu Wulaa's “Yantai's sea wind has alcohol” Minhong Yu's visit to
Changyu Shi Yu becoming the new spokesperson for Changyu's classic brand Trump's
special occasion of drinking Changyu AFIP and Putin's 13 visits to China all drinking
Changyu AFIP and have further enhanced the brand's popularity and reputation.Second closely followed the consumption trends accelerated the speed of market response
continuously improved product quality and developed new products effectively meeting the
demands of consumers. During the reporting period the overall quality of our products
steadily improved and the speed of responding to consumers' needs further accelerated; in
accordance with the new consumption environment we strengthened the marketing
promotion of innovative products such as “Long Tailed Cat” and “Commander Bear”
achieving remarkable results; by fully leveraging celebrity fans carried out interactive
communication and marketing for new product launches online which stimulated product
sales.Third the “going out work” of tourism business has been steadily promoted the tourist
reception volume and tourism income have achieved double growth year on year and the
satisfaction of tourists has been greatly improved which has not only better empowered the
brand of Changyu but also achieved considerable economic benefits.Fourth strengthen financial management and audit supervision prevent operational risks and
enhance operational efficiency. During the reporting period the Company proposed the
“automatic collection fixed retention and linked payment” fund pool strategy promoted the
settlement of internal unit debts and improved the safety and utilization efficiency of funds;
reasonably combined various diversified financial management tools such as time deposits
structured deposits and agreed deposits increasing the fund income; effectively handled
special tasks such as personal income tax research goods and labor tax investigation tax
source sorting of real estate and tax deduction for fund dividends research avoiding and
preventing tax-related risks; by leveraging information tools such as “Every Moment” and
“Collaborative Office” further standardized capital expenditure project management;
persistently conducted regular audits such as manager departure audits and economic
efficiency audits strengthened key expense audits such as advertising expenses of business
divisions and improved the level of audit supervision reducing operational risks.Fifth the Company continued to implement B-share repurchases to protect the interests of
investors. As of July 28 2026 the Company had cumulatively repurchased 13960000
domestic listed foreign capital shares (B shares) through the dedicated securities account for
share repurchase by means of centralized bidding accounting for 6.9991% of the Company's
B shares and 2.1240% of the Company's current total share capital. The highest transaction
price for this repurchase was HKD 8.43 per share while the lowest was HKD 7.99 per share.The total amount of funds paid for the repurchase was HKD115634831.36 (including
transaction fees).
15Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Based on the implementation of above measures the Company achieved certain results in the
first half of 2026 with a slight increase in revenue compared to the previous year; however
the net profit had a year-on-year decline and the Company faces significant pressure and
great uncertainty in fully achieving the financial budget targets for the year 2026. To achieve
the business goals the Company will focus on the following tasks in the second half of 2026:
First guided by the “adhere to the right path while innovating” strategy the Company will
comprehensively and deeply implement the separation of “marketing” and “sales” get closer
to consumers adhere to the consumer--oriented approach continuously improve products and
services and promote the steady and healthy development of all wine varieties.Second accelerate the training and recruitment of talents and build a backbone team capable
of handling tough tasks. The Company will focus on large-scale recruitment of outstanding
talents with experience in the fast-moving consumer goods industry expertise in marketing
brand promotion digitalization and AI application fully stimulating the “catfish effect” and
enhancing the execution and combat effectiveness of the management team.Third increase the development and promotion of new products strengthen product quality
and cost management and continuously enhance product competitiveness. After conducting
in-depth and detailed research on the target population and consumption scenarios the
Company will introduce de-alcohol wine and herbal wine in a timely manner; in response to
the current market trend of the low-alcohol trendy wine growing rapidly follow the market
trend fully utilize the global procurement model and the rich and high-quality fruit resources
in Yantai combine technological innovation and turn low-alcohol trendy wine into a star
product with advantages in cost and quality which is highly favored by Chinese people.Fourth improve financial accounting strengthen fund management and strive to achieve the
goal of cost reduction and efficiency improvement. The Company will coordinate various
resources to complete the bank account bank-enterprise direct connection the sorting of bill
direct connection information connection complete the upgrade and transformation of each
instant reimbursement system and SAP system and the connection with the treasury system
steadily promote the launch and implementation of the treasury project; promote the official
launch of the SAP system of the tourism system; do a good job in the data sorting process
promotion and assessment of the cost reduction and efficiency improvement projects and
ensure the complete achievement of the cost reduction and efficiency improvement goal.Fifth complete the work of repurchasing and canceling a portion of the restricted shares for
the third period of lifting restriction involved in the Company's 2023 restricted share
incentive plan.Year-on-year change in key financial data
Unit: CNY
The same period Year-on-year
This period Cause of significant changes
of last year increase or decrease
Mainly due to the increase in product sales
Operating revenue 1572704753 1470576177 6.94%
volume
16Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Mainly due to the adjustment of product
Operating cost 654715399 592806258 10.44%
varieties
Mainly due to the increase in marketing
Sales expense 458709936 402150816 14.06%
expenses
Mainly due to the decline in depreciation
Management expense 121375686 126647959 -4.16%
expenses
Financial expense 11470668 -14647932 InapplicableMainly due to the increase in exchange loss
Income tax expense 68901273 81765775 -15.73%Mainly due to the decline in operating profit
Mainly due to the increase in research and
R&D expense 9923137 9071966 9.38%
development expenses
Net cash flow generated in Mainly due to the decrease in cash used for
41823589323942112874.69%
operating activities purchasing goods and paying for services
Net cash flow generated in Mainly due to the decrease in cash flows
-3487077192905302-137.53%
investment activities from the disposal of fixed assets
Net cash flow generated in Mainly due to the dividends distribution and
-203934105-27278289125.24%
financing activities decline in profits
Net increased amount of Mainly due to the increase in net cash flow
17805101761013083191.82%
cash and cash equivalents from operating activities
Significant change in the profit form and profit source of the Company during the report
period
□Applicable ?Inapplicable
There is no significant change in the profit form and profit source of the Company during the
report period.Composition of operating revenue
Unit: CNY
This report period The same period of last year Year-on-year
Proportion in Proportion in increase or
Amount Amount
operating revenue operating revenue decrease (%)
Total operating revenue 1572704753 100% 1470576177 100% 6.94%
Sector-classified
Sector of liquor and
1572704753100%1470576177100%6.94%
alcoholic beverage
Product-classified
Wine 1047878619 66.63% 1017390566 69.18% 3%
Brandy 451447014 28.71% 388044327 26.39% 16.34%
17Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Tourism 56362523 3.58% 47631132 3.24% 18.33%
Others 17016597 1.08% 17510152 1.19% -2.82%
Area-classified
Domestic 1319443801 83.90% 1213721087 82.53% 8.71%
Overseas 253260952 16.10% 256855090 17.47% -1.40%
The cases of industry product or area accounting for over 10% in the Company's operating
revenue or operating profit
?Applicable ?Inapplicable
Unit: CNY
Year-on-year Year-on-year Year-on-year
Operating Operating Gross increase or increase or increase or
revenue cost margin decrease (%) of decrease (%) of decrease (%) of
operating revenue operating cost gross margin
Sector-classified
Sector of liquor and
157270475365471539958.37%6.94%10.44%-1.32%
alcoholic beverage
Product-classified
Wine 1047878619 451055597 56.96% 3.00% 10.52% -2.93%
Brandy 451447014 179102654 60.33% 16.34% 10.37% 2.14%
Tourism 56362523 15791898 71.98% 18.33% 21.05% -0.63%
Others 17016597 8765250 48.49% -2.82% -6.31% 1.92%
Area-classified
Domestic 1319443801 495097216 62.48% 8.71% 15.14% -2.10%
Abroad 253260952 159618183 36.97% -1.40% -1.97% 0.36%
Under the condition that the statistical caliber of the Company's main business data is
adjusted during the report period the Company's main business data adjusted on the basis of
caliber at the end of report period in recent one period.?Available ?Not availableThe Company need to comply with the disclosure requirements of “Food and LiquorManufacturing Related Businesses” in Shenzhen Stock Exchange Industry Information
Disclosure Guideline No. 3 - Industry Information Disclosure.
1) Detailed information on sales expenses
The same period Proportion of Proportion of Year-on-year
Items This period
of last year this period last period increase or decrease
Labor cost 126706728 119403300 27.62% 29.69% 6.12%
18Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Marketing expenses 165264594 130423949 36.03% 32.43% 26.71%
Cost of services 17428750 15252966 3.80% 3.79% 14.26%
Depreciation expense 31272848 30786813 6.82% 7.66% 1.58%
Storage rental fee 11813394 11354031 2.58% 2.82% 4.05%
Advertising expenses 37780989 29798339 8.24% 7.41% 26.79%
Trademark usage fee 6470914 5451141 1.41% 1.36% 18.71%
Travel expenses 13046687 12906974 2.84% 3.21% 1.08%
Design and production fee 5937874 4921771 1.29% 1.22% 20.65%
Conference fee 3467275 3000702 0.76% 0.75% 15.55%
Water electricity and gas charges 5352813 5414402 1.17% 1.35% -1.14%
Others 34167070 33436428 7.45% 8.31% 2.19%
Total 458709936 402150816 100% 100.00% 14.06%
4. Analysis in non-main business
□Applicable ?Inapplicable
5. Analysis in assets and liabilities
1) Significant change in assets composition
Unit: CNY
At the end of this report period At the end of last year Proportion Explanation on
Item Proportion in the Proportion in the increase or significant
Amount Amount
total assets (%) total assets (%) decrease (%) changes
No significant
Monetary funds 2083218301 17.53% 1890611804 15.69% 1.84%
changes
No significant
Account receivables 163572526 1.38% 264932724 2.20% -0.82%
changes
No significant
Contract assets 0 0% 0 0% 0%
changes
No significant
Inventory 2793700741 23.51% 2836077209 23.53% -0.02%
changes
No significant
Investment real estate 18773534 0.16% 19900228 0.17% -0.01%
changes
Long-term equity No significant
233570990.20%266561970.22%-0.02%
investments changes
No significant
Fixed assets 5183660371 43.62% 5308778632 44.05% -0.43%
changes
No significant
Construction in progress 6350167 0.05% 4313088 0.04% 0.01%
changes
No significant
Right-of-use asset 88248378 0.74% 55252509 0.46% 0.28%
changes
No significant
Short-term borrowings 244352064 2.06% 240674788 2% 0.06%
changes
19Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
No significant
Contract liability 115718391 0.97% 135067463 1.12% -0.15%
changes
No significant
Long-term borrowings 44628112 0.38% 52374840 0.43% -0.05%
changes
No significant
Lease liability 47387670 0.40% 19437830 0.16% 0.24%
changes
20Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
2) Main overseas assets situation
?Applicable ?Inapplicable
Unit：CNY
Formation Operation Control measures for safeguarding of Earning Proportion of overseas assets Whether there are
Details of assets Assets scale Location
reasons mode asset security condition in the Company's net assets significant impairment risks
The Company participates in making important
Hacienda Y Vinedos Acquisition of Independent
639572887 Spain decisions through Board of Directors and -3927478 6.13% No
Marques Del Atrio. SL equity operation
appoints CFO on financial management.Establishment
Indomita Wine Independent The Company participates in making important
of joint 515819594 Chile -4083170 4.95% No
Company Chile S.p.A. operation decisions through Board of Directors.venture
Kilikanoon Estate Pty. Acquisition of Independent The Company participates in making important
130189322 Australia -4376492 0.75% No
Ltd. equity operation decisions through Board of Directors.Sole The Company participates in making important
Francs Champs Independent
proprietorship 193503440 France decisions through directly appointing senior -3474192 1.86% No
Participations SAS operation
establishment executive.Other information explanation None
3) Assets and liabilities measured at fair value
□Applicable ?Inapplicable
4) Limitations of assets rights up to the end of the report period
Please refer to the “Notes to the Consolidated Financial Statements” in the financial report of this report specifically the “Assets with restrictedownership or use rights”.
6. Analysis in investment condition
1) Overall situation
21Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
?Applicable ?Inapplicable
Investment amount during the report period (CNY) Investment amount of the same period of last year (CNY) Variation
1695684730353311-44.14%
2) Cases of acquired significant equity investments during the report period
□Applicable ?Inapplicable
3) Cases of significant ongoing non-equity investments during the report period
?Applicable ?Inapplicable
Unit: CNY
Accumulated Accumulated Reasons for
Whether
Involved Investment actual realized unreached
belongs to
Investme sectors of amount during investment Capital Project Estimated earnings up planning Disclos
Project name fixed Disclosure index (if have)
nt mode investment the report amount up to the source progress earnings to the end of schedule and ure date
assets
projects period end of the report the report estimated
investment
period period earnings
Yantai Changyu Please refer to Resolution
International
Self-cons Owned 2017.04 Announcement of Seventh Session
Wine City Yes 0 1705784100 100.00% 0 0 -
tructed fund .22 Board of Directors 4th Meeting
Blending and Liquor and Resolution Announcement of
Cooling Center alcoholic Seventh Session Board of
Yantai Changyu beverage Directors 8th Meeting Resolution
International Self-cons sector Owned 2017.04 Announcement of Seventh Session
Yes 1500000 1138020000 100.00% 0 0 -
Wine City tructed fund .22 Board of Directors 10th Meeting
Bottling Center Resolution Announcement of
Oak Barrel Self-cons Yes 10006247 247527147 Owned 98.00% 0 0 - 2021.04 Eighth Session Board of Directors
22Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Procurement tructed fund .28 4th Meeting Resolution
Project Announcement of Eighth Session
Board of Directors 11th Meeting
Resolution Announcement of
Ninth Session Board of Directors
5th Meeting Resolution
Projects of Yantai Announcement of Ninth Session
local companies Board of Directors 9th Meeting
Self-cons Owned 2025.04
and chateaux Yes 5450600 11183600 75.00% 0 0 - Resolution Announcement of
tructed fund .18
placed other than Ninth Session Board of Directors
Yantai 11th Meeting and Resolution
Announcement of Tenth Session
Board of Directors 5th Meeting
disclosed on CNINFO
(http://www.cninfo.com.cn/)
Total -- -- -- 16956847 3102514847 -- -- 0 0 -- -- --
4) Financial assets investment
* Security investment situation
□Applicable ?Inapplicable
There are no security investments for the Company during the report period.* Derivatives investment
□Applicable ?Inapplicable
There are no derivatives investments for the Company during the report period.
5) The usage situation of raised capital
□Applicable ?Inapplicable
There are no usage situations of raised capital for the Company during the report period.
23Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7. Sale of significant assets and equities
1) Sale of significant assets
?Applicable ? Inapplicable
There are no sale of significant assets for the Company during the report period.
2) Sale of significant equities
?Applicable ?Inapplicable
8. Analysis of main holding and joint stock companies
?Applicable ? Inapplicable
Situation of main subsidiaries and joint stock companies affecting over 10% of the Company's net profit
Unit: CNY
Company name Company type Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Yantai Changyu Pioneer Wine Sales Sales of alcoholic
Subsidiary CNY8million 593797739 14703921 1034589646 103864535 84330874
Co. Ltd. products
Yantai Changyu Wine Sales Co. Sales of alcoholic
Subsidiary CNY5million 89504019 79114571 337933233 57372596 43020282
Ltd. products
Changyu Trading Co. Ltd. in Sales of alcoholic
Subsidiary CNY5million 97300034 15151797 49828680 6676628 4998721
Development Zone of Yantai products
Laizhou Changyu Wine Sales Co. Sales of alcoholic
Subsidiary CNY1million 39351180 1087342 121891996 6343136 4757427
Ltd. products
Acquisition and disposal of subsidiaries during the report period
□Applicable ?Inapplicable
Explanation on main holding and joint stock companies
None
24Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
9. Situation of the structured subjects controlled by the Company
□Applicable ?Inapplicable
10. Risks and response measures
1) Risk in price fluctuation of raw materials
Grapes are the Company's main raw materials. The grape's yield and quality are affected to a
certain extent by the natural factors such as drought wind rain frost and snow. These force
majeure factors greatly influence the quantity and price of the grapes in this Company orders
and add the uncertainty to the Company's production and operation. Therefore the Company
will lower the risks that are likely to affect grape quality and result in price fluctuation by
means of expanding the self-run vineyards strengthening the vineyard management and
optimizing the layout of vineyards.
2) Risk in uncertainty of market input and output
To cope with the cutthroat market competition and to meet the needs for market development
the Company has input more and more capital in the market and the sales expense has taken
up a higher percentage point in the business revenue. The input-output ratio will affect the
Company's operating results to a great extent and the risk that some investments may not
reach the expectations is likely to occur. Therefore the Company will strengthen market
research and analysis enhance market forecast accuracy and continue to perfect the
input-output evaluation system to ensure the investments in market to be satisfactory as
expected.
3) Risk in product transport
The Company's products are fragile and sent to different places all over the world mostly by
sea railway and expressway. The peak season of sales is usually in cold winter and close to
the spring festival when market has a great demand. At that time the natural and human
factors such as serious shortage of transport capacity resulting from busy flow of people and
goods wind snow freezing as well as traffic accidents make the transport departments
difficult to send products to markets in time and safely. As a result it makes this Company
have to face the risks of missing the peak season of sales. Therefore the Company will adopt
all methods possible like making precise sales prediction and well designed connection of
production and sales reasonably arranging production and transport means and making use of
more available warehouses in different places to lower these kinds of risks.
4) Risk in investment faults
The Company invested many projects in the previous periods and the investment amounts
were relatively large. For individual project owing to the influence of various factors it led to
have the risks of facing with the investment amount out of budget or hardly taking back the
expected investment earnings. The Company will take an adequate argument and scientific
decision-making for investment projects try hard to reduce and avoid investment risks.
5) Risk in exchange rate
The Company's overseas subsidiaries export products to many different countries and the
export amount is relatively large. There may be exchange losses or gains due to exchange rate
fluctuation.
6) Other risks
During the production and sales of the Company's products it may be affected by force
majeure such as wars typhoons earthquakes etc..
11. Market value management system and valuation enhancement plan formulation
and implementation
Whether the company has established a market value management system
?Yes ?No
25Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
The company has formulated a Market Value Management System which mainly covers the
purposes and basic principles of market value management the structure and responsibilities
of market value management the main methods of market value management the monitoring
and early warning mechanism and the emergency measures. This has further standardized
and improved the behavior of market value management.Whether the company has disclosed a valuation enhancement plan
□Yes ?No
12. Implementation of the “The Improvement Both on Quality and Return” action plan
Whether the company disclosed the “The Improvement Both on Quality and Return” action
plan
□Yes ?No
26Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
IV. Corporate Governance Environmental and Social Responsibility
1. Changes in the Company's directors and senior executives
?Applicable ?Inapplicable
Name Position held Type Date Reason
General manager Terminate the
Zhenbo XIAO 2026.03.09 Personal reason
assistant appointment
2. Situation of profit distribution and capitalization of capital reserve into share capital
during the report period
□Applicable ?Inapplicable
The Company plans not to distribute cash dividends or give bonus shares or make capitalization of
capital reserve into share capital.
3. Implementation of the Company's equity inventive plan employee stock ownership
plan or other employee incentive measures
?Applicable ?Inapplicable
1) Equity incentive
In 2023 the Company implemented the restricted share incentive plan for 203 middle-level
managers and core cadres and granted them 6785559 shares of restricted share. On July 24 2026
the Company's Fifth Interim Board of Directors Meeting in 2026 deliberated and approved the
Proposal on Failure to Achieve Conditions for Lifting Restrictions in the Third Period of Lifting
Restriction Involved in the Company's 2023 Restricted Share Incentive Plan and Proposal on
Buy-back and Cancelling Some Restricted Shares of the Company's 2023 Restricted Share
Incentive Plan and to Adjust the Buy-back Price. The conditions for lifting restrictions in the third
restriction-lifted period of restricted shares granted under the Company's Incentive Plan have not
been met and the number of restricted shares granted to the Company's 179 incentive subjects that
needs to be bought back and cancelled amounts to 2485626 shares.
2) Implementation of employees' share ownership plan
?Available ?Not available
3) Other employee incentives
?Available ?Not available
4. Environmental information disclosure situation
Whether the listed company and its major subsidiaries are included in the list of enterprises that
disclose environmental information in accordance with the law
?Yes ?No
The number of enterprises included in the list of enterprises legally disclosing environmental information 1
No. Company Name Query index for the report on the legal disclosure ofenvironmental information
1 Liaoning Changyu Golden Icewine Valley Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
27Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
5. Social responsibility performance
1) The Company served the rural revitalization well adopted the mode of “company +farmer” or “company + cooperative + farmer” reformed the sloping fields of Jiaodong
Peninsular and the northwestern area including Ningxia and Xinjiang and so on the
uncultivated land or the barren land into graperies. By means of providing capital and
technology of viticulture to fruit growers scientific management level of vineyard had been
improved. The Company spared no effort to popularize the non-pollution and mechanized
planting methods continuously improved production efficiency of grape base and quality of
grape and reduced production cost of grape and labor intensity. Through the above measures
on the one hand it promotes the effective use of land resources promotes the organic
integration of rural households and modern agriculture and helps increase agricultural
efficiency farmers' incomes and rural development; on the other hand it improves the local
ecological environment and brings huge ecological benefits.
2) The Company provided counterpart supports to Huangchengyang village in Longkou City
an old revolutionary base area by purchasing local agricultural products to help solve the
problem of slow sales.
3) The Company provided help and assistance to the Company's in-service or retired
employees with poor families as well as the Company's in-service or retired employees with
chronic or serious illnesses.
28Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
V. Major issues
1. Commitments that the Company's actual controllers shareholders related parties
acquirers and the Company and other related commitment parties have implemented
during the report period and have not implemented up to the end of the report period
□Applicable ?Inapplicable
There is no commitments that the Company's actual controllers shareholders related parties
acquirers and the Company and other related commitment parties have implemented during
the report period and have not implemented up to the end of the report period
2. Non-operational occupation capital of the listed company by controlling shareholder
and its related parties
□Applicable ?Inapplicable
There is no non-operational occupation capital of the listed company by controlling
shareholder and its related parties during the report period.
3. Illegal external guarantee
□Applicable ?Inapplicable
There is no illegal guarantee situation during the report period.
4. Appointment and dismissal of certified public accountants
Whether the semi-annual report has been audited
?Yes ?No
The semi-annual report has not been audited.
5. Explanation from the Board of Directors for the “Non-standard Audit Report”
during this report period
□Applicable ?Inapplicable
6. Explanation from the Board of Directors for the “Non-standard Audit Report” of
last year
□Applicable ?Inapplicable
7. Issues related with bankruptcy reorganization
□Applicable ?Inapplicable
There are no related issues of bankruptcy reorganization happened at the end of the report
period.
8. Litigation Issue
Material litigation and arbitration
□Applicable ?Inapplicable
There are no material litigation and arbitration during the report period.Other Litigation Issue
□Applicable ?Inapplicable
29Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
9. Penalty and rectification
□Applicable ?Inapplicable
There is no penalty and rectification during the report period.
10. Credit of the Company its controlling shareholder and actual controller
□Applicable ?Inapplicable
11. Major related transactions
1) Related transactions in relation to routine operations
?Applicable □Inapplicable
Proportion Approved Whether Available
Related Relationsh Pricing Amount accounting for exceed
party ip Type Content principle Price (CNY amount of
transaction approved Clearin market price Disclosuquota (CNY g form of similar re date Disclosure index
‘0000) similar 0000) transactiontransactions ‘ quota transactions
Expected
Announcement on
Yantai Controlled Purchase 2026 Annual Routine
Shenma by the Purchase and
Packagin same and commission Agreemen
Determine 2026.02. Related Transaction
commission processing t pricing d by 2326 13.35% 6600 No Cash No 12 disclosed in Chinag Co. parent processing packaging agreement SecuritiesLtd. company materials JournalSecuritiesTimesand CNINFO in
February 12 2026
Total -- -- 2326 -- 6600 -- -- -- -- --
Details of the return of large sales No
Actual performance of the estimated total amount for
daily operations related transactions by category that No
will occur during this period.Reason for the deference between transaction price Inapplicable
and market reference price
30Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
2) Related transactions in relation to acquisition and sales of assets or equity
□Applicable ?Inapplicable
There are no related transactions in relation to acquisition or sales of assets or equity during
the report period.
3) Related transactions in relation to common foreign investment
□Applicable ?Inapplicable
There are no related transactions in relation to common foreign investment during the report
period.
4) Related credit and debt dealings
?Applicable □Inapplicable
Whether or not existing non-operating related credit and debt transactions
□Yes ?No
There is no non-operating related credit and debt transactions during the report period.
5) Deals of related financial companies
□Applicable ?Inapplicable
There is no deposit loan credit granting or other financial business between the related
financial companies and related parties.
6) Deals between financial companies controlled by the Company and relayed parties
□Applicable ?Inapplicable
There is no deposit loan credit granting or other financial business between the financial
companies controlled by the Company and related parties.
7) Other major related transactions
?Applicable □Inapplicable
For other major related transactions please refer to the Announcement of 2026 AnnualExpected Routine Related Transaction and the Section XI “ Related Parties and RelatedTransaction” of the Financial Report of this report.Disclosure website of interim report for major related transaction
Name of interim announcement Disclosure date of interim Name of disclosure websiteannouncement for interim announcement
Announcement of 2026 Annual Expected 2026.02.12 CNINFO (www.cninfo.com.cn)
Routine Related Transaction
12. Major contracts and execution conditions
1) Trusteeship contract and lease issues
* Trusteeship situation
□Applicable ?Inapplicable
There is no trusteeship situation during the report period.* Contracting situation
□Applicable ?Inapplicable
There is no such contracting situation during the report period.* Lease situation
?Applicable □Inapplicable
Explanation for lease situation
On January 1 2022 the Company renewed the Space Lease Agreement with the controlling
31Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
shareholder Yantai Changyu Group Company Limited. The Company leased the space with
15196.94 square meters locating at No. 174 Shihuiyao Road Zhifu District Yantai City. The
rent per year is CNY1.4645million with a rental period of 5 years from January 1 2022 to
December 31 2026.On January 1 2022 the Company's subordinate Sales & Marketing Co. of Yantai Changyu
Pioneer Wine Company Limited Brandy Sales Division renewed the Space Lease Agreement
with the controlling shareholder Yantai Changyu Group Company Limited leasing the space
with 42552.83 square meters locating at No. 1 Jichang Road Zhifu District Yantai City and
the space with 3038 square meters locating at 56 Dama Road Zhifu District Yantai City
which are all under the name of controlling shareholder. The rent of above spaces per year is
CNY4.3935million with a rental period of 5 years from January 1 2022 to December 31
2026.
In 2023 this Company signed a house-leasing contract with Yantai Shenma Packaging
Company Limited. According to this contract since July 1 2023 this Company leased
property to Yantai Shenma Packaging Company Limited for a business purpose with the
annual rent of CNY1626880. This contract expires on June 30 2028.Project whose profit and loss brought for the Company reach more than 10% of the total
profit during the report period
Applicable ?Inapplicable
There are no lease projects whose profit and loss brought for the Company reach more than
10% of the total profit during the report period.
32Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
2) Major guarantee
?Applicable □Inapplicable
Unit: CNY'0000
External guarantee of the Company and its subsidiaries（excluding guarantee to subsidiaries）
Disclosure date of Countergua
Actual date of Whether or not Whether or not belong
related Guarantee Actual guarantee Guarantee Collateral rantee
Guarantee object name occurrence (date of Guarantee Period complete to related-party
announcement about quota amount type (if have) situation (if
agreement) implementation guarantee
guarantee quota have)
——
Guarantee situations between the Company and subsidiaries
Disclosure date of
Countergua Whether or not Whether or not belong
related Guarantee Actual date of Actual guarantee Guarantee
Guarantee object name Collateral rantee Guarantee Period complete to related-party
announcement about quota occurrence amount type
situation implementation guarantee
guarantee quota
Effective as of the
date this
Agreement is
signed and will
Joint liability
Kilikanoon Estate Pty Ltd 2025.10.25 7000 2023.09.01 7000 - - remain in effect as No Yes
assurance
long as the
guarantor remains
in business with
East West Bank
Three years from
Hacienda Y Vinedos Joint liability
2026.06.19 14110 2026.06.30 14110 - - the date when the No Yes
Marques Del Atrio. SL assurance
performance
33Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
period of the
debtor's debt
under the principal
creditor-debtor
contract expires.Total of the guarantee quota approved to Total of the actual guarantee amount for subsidiaries during
1411014110
subsidiaries during the report period (B1) the report period (B2)
Total of the guarantee quota approved to Balance of the actual guarantee for subsidiaries by the end
2111021110
subsidiaries by the end of the report period (B3) of the report period (B4)
Guarantee situations between subsidiaries
Countergu Whether or not
Disclosure date of Actual date of Actual Whether or not
Guarantee Collateral arantee belong to
Guarantee object name related announcement occurrence (date of guarantee Guarantee type Guarantee Period complete
quota (if have) situation related-party
about guarantee quota agreement) amount implementation
(if have) guarantee
Total guarantee amount of the Company（Total of above three major items）
Total of the approved guarantee quota during the Total of the actual guarantee amount during the report
1411014110
report period（A1+B1+C1） period（A2+B2+C2）
Total of the approved guarantee quota by the end Balance of the actual guarantee by the end of the report
2111021110
of the report period（A3+B3+C3） period（A4+B4+C4）
The proportion of actual total guarantee amount (A4+B4+C4) accounting for the Company's net asset 2.05%
Among :
The amount of guarantee for shareholders actual controllers and their related parties（D） 0
The amount of debt guarantee for the guaranteed objects whose asset-liability ratio is more than 70% directly or indirectly（E） 0
Total amount of guarantee of the part that exceeds 50% of net assets（F） 0
34Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Total amount of the above-mentioned three items（D+E+F） 0
Explanation for undue guarantees that have happened warranty liability or may take joint payback liabilities during the report period (if have) No
Explanation for violating due process to provide external guarantee (if have) No
Explanation on specific situations of adapting guarantee by complex methods
None
3) Financial management entrustment
?Applicable ?Inapplicable
There is no financial management entrustment during the report period.
4) Other important contracts
?Applicable ?Inapplicable
There are no other important contracts during the report period.
13. Activity registration form for receptions of research communication visit and other activities during the report period
?Applicable □Inapplicable
Reception Type of reception Main discussed contents and
Reception place Reception pattern Reception object Basic situation index of reception
time object provided data
Investor Relations Network
Institutions individuals The recent production and operation The Record of Investor-relations Activity
2026.05.15 Interactive Platform platform online All investors
and others situation of the Company disclosed on Shenzhen Stock Exchange
(https://ir.p5w.net) communication
The Company's Institutions individuals All investors attending the on-site The recent production and operation The Record of Investor-relations Activity
2026.05.22 Field research
meeting room and others meeting of the Shareholders' Meeting situation of the Company disclosed on Shenzhen Stock Exchange
14. Other Major issues
?Applicable ?Inapplicable
There are no other major issues that need to be explained during the report period.
15. Major issues of Company's subsidiaries
?Applicable ?Inapplicable
35Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
VI. Changes in Shares and Shareholders' Situation
1. Changes in shares
1) Changes in shares
Unit: share
Amount before this change Change (+ -) Amount after this change
Percentage Distribute bonus Transfer other capital Percentage
Amount Allot new share Others Subtotal Amount
% share to share capital %
I. Shares with trading limited condition 2674326 0.41% 56675 56675 2731001 0.42%
1. State-owned holdings
2. State-owned legal person holdings
3. Other domestic holdings 2674326 0.41% 56675 56675 2731001 0.42%
Among which: domestic legal person
domestic natural person 2674326 0.41% 56675 56675 2731001 0.42%
4. Foreign-owned holdings
Among which: foreign legal person
foreign natural person
II. Shares without trading limited condition 654565802 99.59% -56675 -56675 654509127 99.58%
1. A shares 455112295 69.24% -56675 -56675 455055620 69.23%
2. B shares 199453507 30.35% 199453507 30.35%
3. Oversea listed foreign shares
4. Others
III. Total shares 657240128 100% 657240128 100%
36Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Cause of share change
?Applicable ?Inapplicable
The change in restricted shares is due to the variation in the number of shares locked up by senior
executives.Approval of share change
?Applicable ?Inapplicable
Transfer ownership of changed shares
?Applicable ?Inapplicable
Implementation progress of share buy-back
?Applicable ?Inapplicable
As of July 28 2026 the Company has bought back 13960000 B shares of the Company through
share buy-back special securities account in a centralized bidding mode accounting for 6.9991%
of Company's B shares and 2.1240% of Company's current total share capital with the highest
transaction price of HKD 8.43 per share and the lowest transaction price of HKD 7.99 per share.The total transaction amount was HKD 115634831.36 (including transaction fees) that
equivalent to CNY99995053.11 which is less than CNY100million.The shares being bought back are currently undergoing the transfer process. The actual number of
shares bought back falls within the range specified in the repurchase plan (i.e. the number of
buy-back shares is no less than 10 million and no more than 15 million).Implementation progress of reducing holding buy-back share through the way of centralized
bidding
?Applicable ?Inapplicable
The influence of share change on the financial indicators such as basic earnings per share diluted
earnings per share of the latest year and the latest period net asset per share belonging to the
Company's common shareholders etc.?Applicable ?Inapplicable
Other contents the Company thinks necessary or securities regulatory departments ask to make
public.?Applicable ?Inapplicable
37Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
2) Changes in restricted shares
?Applicable ?Inapplicable
Unit: share
Number of restricted Number of restricted Number of restricted Number of restricted
Date of lifting
Shareholder name shares at the shares lifted during shares increased shares at the end of Reason for restricted sale
restrictions
beginning period this period during this period the period
Released restricted shares but cannot be sold
Hongjiang ZHOU 41700 18000 59700 —
due to senior executive lock-in
Released restricted shares but cannot be sold
Jian SUN 123000 15750 138750 —
due to senior executive lock-in
Released restricted shares but cannot be sold
Jiming LI 8000 12000 20000 —
due to senior executive lock-in
Released restricted shares but cannot be sold
Jianxun JIANG 8000 12000 20000 —
due to senior executive lock-in
Released restricted shares but cannot be sold
Bin PENG 8000 6075 1925 —
due to senior executive lock-in
Jianfu PAN 0 0 — —
Qingkun KONG 0 — —
Shilu LIU 0 — —
Released restricted shares but cannot be sold
Zhenbo XIAO 0 5000 5000 —
due to senior executive lock-in
Hongbo SUN 0 — —
Cuimei GUO 0 — —
Other 179 individuals who are the recipients of the
2485626 2485626 Restricted shares cannot be sold —
2023 restricted stock incentive plan
Total 2674326 6075 62750 2731001 -- --
2. Securities issuance and listing situation
?Applicable ?Inapplicable
3. The number of shareholders of the Company and the shareholdings
38Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Unit: share
Total shareholders in the report period 39835 Total number of preferred shareholder recovering voting power by the end of report period (if have)(see note 8) 0
Shareholders holding more than 5% or the top 10 shareholders holding situation (exclude the lending of shares through the margin lending and securities lending system)
Percentage
Name of Shareholders Character of Shares held until the end Changes during the Number of Number of
Pledged or frozen
shareholders (%) of the report period report period restricted shares unrestricted shares Share status Amount
YANTAI CHANGYU GROUP CO. LTD. Domestic non-state legalperson 52.56% 345473856 0 0 345473856 Inapplicable 0
Fengdi JIANG Domestic natural person 0.67% 4429000 -106834 0 4429000 Inapplicable 0
Hairong HU Domestic natural person 0.54% 3550035 83000 0 3550035 Inapplicable 0
VANGUARD TOTAL INTERNATIONAL STOCK Foreign legal person 0.52% 3446137 -20898 0 3446137 Inapplicable 0
INDEX FUND
Social Security Fund 114 Other 0.52% 3425055 0 0 3425055 Inapplicable 0
VANGUARD EMERGING MARKETS STOCK Foreign legal person 0.47% 3087201 0 0 3087201 Inapplicable 0
INDEX FUND
HONG KONG SECURITIES CLEARING Foreign legal person 0.46% 3030765 -67692 0 3030765 Inapplicable 0
COMPANYLIMITED
Social Security Fund 413 Other 0.46% 3000060 0 0 3000060 Inapplicable 0
NORGES BANK Foreign legal person 0.35% 2333030 0 0 2333030 Inapplicable 0
Galaxy Jinhu Securities Asset Management - China
Great Wall Asset Management Co. Ltd. - Galaxy Other 0.28% 1847841 1847841 0 1847841 Inapplicable 0
Jinhu Quanxin Changying Selective Single Asset
Management Plan
Strategic investors or legal result of the placement of new shares to become a
top 10 shareholders No
The explanation for the associated relationship and accordant action Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant actionrelationship with the other 9 listed shareholders while the relationship among the other shareholders is unknown.Explanation of the above-mentioned shareholders' entrustment/ fiduciary
voting rights and waiver of the voting rights No
Special explanation for the existence of a special repurchase account among On June 30 2026 the special repurchase securities account of Yantai Changyu Pioneer Wine Co. Ltd. held 4830000 B shares
the top 10 shareholders of the Company.The top 10 shareholders with shares without trading limited condition (exclude the lending of shares through the margin lending and securities lending system and senior executive lock-in)
Name of Shareholders Number of shares without trading limited condition held until the end of the year Type of share
39Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Type of share Amount
YANTAI CHANGYU GROUP CO. LTD. 345473856 A 345473856
Fengdi JIANG 4429000 A 4429000
Hairong HU 3550035 A 3550035
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 3446137 B 3446137
Social Security Fund 114 3425055 A 3425055
VANGUARD EMERGING MARKETS STOCK INDEX FUND 3087201 B 3087201
HONG KONG SECURITIES CLEARING COMPANY LIMITED 3030765 A 3030765
Social Security Fund 413 3000060 A 3000060
NORGES BANK 2333030 B 2333030
Galaxy Jinhu Securities Asset Management - China Great Wall Asset
Management Co. Ltd. - Galaxy Jinhu Quanxin Changying Selective Single 1847841 B 1847841
Asset Management Plan
The explanation for the associated relationship and accordant action of the top
10 shareholders with unrestricted shares the the associated relationship and Among the top 10 shareholders Yantai Changyu Group Company Limited has no associated relationship or accordant action
accordant action between the top 10 shareholders with unrestricted shares and relationship with the other 9 listed shareholders and the relationship among the other shareholders is unknown.the top 10 shareholders
Explanation for the top 10 shareholders who involved in financing activities
and stock trading business No
Shareholders holding more than 5% the top 10 shareholders and the top 10 shareholders with unrestricted tradable shares participate in the lending of
shares involved in the refinancing business
?Applicable ?Inapplicable
The top 10 shareholders and the top 10 shareholders with unrestricted tradable shares have changed from the previous period due to refinancing
lending/restitution reasons
?Applicable ?Inapplicable
Whether or not the Company's top 10 common shareholders and top 10 shareholders with unrestricted shares take agreed repurchase transaction during the
report period
?Yes ?No
There is no agreed repurchase transaction taken by the Company's top 10 common shareholders and top 10 shareholders with unrestricted shares during the
report period.
40Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
4. Changes in shareholdings of directors supervisors and senior executives
?Applicable ?Inapplicable
Number of Increased number Decreased number Number of shares Number of restricted Number of restricted Number of restricted
Shares held at the of shares held in the of shares held in held at the end shares granted at the shares granted in the shares granted at the
Name Position Status beginning period current period the current period period beginning period current period end period
(shares) (shares) (shares) (shares) (shares) (shares) (shares)
ZHOU
Chairman Incumbent 207600 207600 168000 0 168000
Hongjiang
Director and
SUN Jian General Incumbent 297000 297000 147000 0 147000
Manager
Director and
LI Jiming Deputy General Incumbent 112000 112000 112000 0 112000
Manager
Director Deputy
JIANG General
Incumbent 112000 112000 112000 0 112000
Jianxun Manager and
Board Secretary
Deputy General
PENG Bin Incumbent 87900 87900 87900 0 87900
Manager
General
PAN Jianfu Manager Incumbent 40000 40000 40000 0 40000
Assistant
General
KONG
Manager Incumbent 45000 45000 45000 0 45000
Qingkun
Assistant
General
LIU Shilu Manager Incumbent 40000 40000 40000 0 40000
Assistant
XIAO General Outgoing 45000 45000 45000 0 45000
Zhenbo Manager
41Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Assistant
General
SUN
Manager Incumbent 14389 14389 14389 0 14389
Hongbo
Assistant
General
Manager
GUO
Assistant and the Incumbent 16436 16436 16436 0 16436
Cuimei
Person in Charge
of Finance
Total -- -- 1017325 0 0 1017325 827725 0 827725
5. Changes in controlling shareholders or actual controllers
The company has previously disclosed that the actual controller was planning to change the control rights but the process had not yet been completed.Please provide an update on the progress of the control rights change.?Applicable ?Inapplicable
Changes in the controlling shareholders during the report period
?Applicable ?Inapplicable
There is no any change in the controlling shareholders during the report period.Changes in the actual controllers during the report period
?Applicable ?Inapplicable
There is no any change in the actual controllers during the report period.
6. Related Situation of Preferred Shares
?Applicable ?Inapplicable
There are no preferred shares during the report period.
42Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
XII. Related Situation of Bonds
?Applicable ?Inapplicable
XIII. Financial Report
1. Audit report
Whether the semi-annual report has been audited
?Yes ?No
The company’s semi-annual report has not been audited.
2. Financial statement
The unit in the statements of the financial notes is RMBYuan.
2.1 Consolidated balance sheet
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. June 30 2026 Unit: yuan
Item Note June 30 2026 December 31 2025
Current assets:
Monetary capital 7.1 2083218301 1890611804
Settlement reserves
Lending funds
Tradable financial assets
Derivative financial assets
Bills receivable 7.2 100000 102342
Accounts receivable 7.3 163572526 264932724
Accounts receivable financing 7.4 222487233 228073841
Advance payment 7.5 14506780 54011809
Premium receivable
Reinsurance accounts receivable
Receivable reserves for reinsurance contract
Other receivables 7.6 113246526 127713309
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
43Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Note June 30 2026 December 31 2025
Inventories 7.7 2793700741 2836077209
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7.8 66722522 74160936
Total current assets 5457554629 5475683974
Non-current assets:
Offering loans and imprest
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7.9 23357099 26656197
Other investments in equity instruments
Other non-current financial assets
Investment real estate 7.10 18773534 19900228
Fixed assets 7.11 5183660371 5308778632
Construction in progress 7.12 6350167 4313088
Productive biological assets 7.13 57081603 60098714
Oil-and-gas assets
Right-of-use assets 7.14 88248378 55252509
Intangible assets 7.15 505262835 512930637
Including: Data resource
Development expenditure
Including: Data resource
Goodwill 7.16 88036557 88036557
Long-term deferred expenses 7.17 275819174 283227056
Deferred income tax assets 7.18 178840549 215680654
Other non-current assets 7.19 43735 43735
Total non-current assets 6425474002 6574918007
Total assets 11883028631 12050601981
Current liabilities:
Short-term borrowings 7.21 244352064 240674788
Borrowings from the Central Bank
Borrowing funds
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 7.22 313132902 321932168
Advances from customers
Liabilities of contracts 7.23 115718391 135067463
44Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Note June 30 2026 December 31 2025
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee remunerations payable 7.24 128744727 162525617
Taxes and dues payable 7.25 129984754 158558934
Other payable 7.26 311014990 332855775
Including: Interest payable
Dividends payable 7.26 388355
Handling charges and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year 7.27 81996110 75440910
Other current liabilities 7.28 15077955 27193862
Total current liabilities 1340021893 1454249517
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 7.29 44628112 52374840
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities 7.30 47387670 19437830
Long-term accounts payable
Long-term employee remunerations payable
Estimated liabilities
Deferred income 7.31 15793091 19386932
Deferred income tax liabilities 7.18 6296958 6613894
Other non-current liabilities
Total non-current liabilities 114105831 97813496
Total liabilities 1454127724 1552063013
Owner's equities:
Capital stock 7.32 657240128 657240128
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserves 7.33 364048502 364048502
Minus: Treasury stock 7.34 72754596 37880941
Other comprehensive income 7.35 -28084834 -16329710
Special reserves
Surplus reserves 7.36 342732000 342732000
General risk preparation
45Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Note June 30 2026 December 31 2025
Undistributed profits 7.37 9013643371 9037437598
Total owner's equities attributable to the parent company 10276824571 10347247577
Minority equity 152076336 151291391
Total owner's equities 10428900907 10498538968
Total liabilities and owner's equities 11883028631 12050601981
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei 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 2026 December 31 2025
Current assets:
Monetary capital 1301638438 1068117647
Tradable financial assets
Derivative financial assets
Bills receivable
Accounts receivable 18.1 515656
Accounts receivable financing 49720103 49858915
Advance payment 186242
Other receivables 18.2 534601801 706617690
Including: Interest receivable
Dividends receivable 3495195 20000000
Inventories 396548891 368660076
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 13654075 1761013
Total current assets 2296865206 2195015341
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 18.3 7639851962 7639851962
Other investments in equity instruments
Other non-current financial assets
Investment real estate 18773534 19900228
46Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Note June 30 2026 December 31 2025
Fixed assets 129455126 138604795
Construction in progress
Productive biological assets 15414672 16972242
Oil-and-gas assets
Right-of-use assets 5319288 6638093
Intangible assets 65687592 67060514
Including: Data resource
Development expenditure
Including: Data resource
Goodwill
Long-term deferred expenses
Deferred income tax assets 2323687 3339186
Other non-current assets 1805430000 1812430000
Total non-current assets 9682255861 9704797020
Total assets 11979121067 11899812361
Current liabilities:
Short-term borrowings 50000000 50000000
Tradable financial liabilities
Derivative financial liabilities
Bills payable
Accounts payable 29357791 35959493
Advances from customers
Liabilities of contracts
Employee remunerations payable 59137772 64506520
Taxes and dues payable 1586591 3040948
Other payable 689773852 565391567
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 1922916 1636113
Other current liabilities
Total current liabilities 831778922 720534641
Non-current liabilities:
Long-term borrowings
Bonds payable
47Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Note June 30 2026 December 31 2025
Including: Preferred stock
Perpetual bonds
Lease liabilities 3272527 5168920
Long-term accounts payable
Long-term employee remunerations payable
Estimated liabilities
Deferred income 177355 177355
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 3449882 5346275
Total liabilities 835228804 725880916
Owner's equities:
Capital stock 657240128 657240128
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserves 401287028 401287028
Minus: Treasury stock 72754596 37880941
Other comprehensive income
Special reserves
Surplus reserves 342732000 342732000
Undistributed profits 9815387703 9810553230
Total owner's equities 11143892263 11173931445
Total liabilities and owner's equities 11979121067 11899812361
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
2.3 Consolidated profit statement
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Note Amount incurred in this Amount incurred in prior
Item
period period
1. Total operating income 1572704753 1470576177
Including: Operating income 7.38 1572704753 1470576177
Interest income
Earned premium
Handling fee and commission income
48Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
2. Total operating costs 1371646351 1213880507
Including: Operating costs 7.38 654715399 592806258
Interest expenditure
Handling fees and commission expenditure
Premium rebate
Net amount of indemnity expenditure
Net amount of the withdrawn reserve fund for
insurance contract
Policy bonus payment
Reinsurance expenditures
Taxes and surcharges 7.39 115451525 97851440
Selling expenses 7.40 458709936 402150816
Administrative expenses 7.41 121375686 126647959
R&D expenses 7.42 9923137 9071966
Financial expenses 7.43 11470668 -14647932
Including: Interest expenses 8320670 5528569
Interest income 8050884 5914026
Plus: Other profit 7.44 8354311 19258546
Investment profit (loss is listed with “-”) 7.45 -3299098 -3018088
Including: Investment profit for joint-run business and
-3299098-3018088
joint venture
Financial assets measured at amortized cost
cease to be recognized as income
Exchange income (loss is listed with “-”)
Net exposure hedge income (loss is listed with “-”)
Income from fair value changes (loss is listed with “-”)
Credit impairment loss (loss is listed with “-”) 7.46 662543 1549058
Asset impairment loss (loss is listed with “-”) 7.47 2771951 -2093965
Income from asset disposal (loss is listed with “-”) 7.48 25845 361014
3. Operating profit (loss is listed with “-”) 209573954 272752235
Plus: Non-operating income 7.49 2699465 917633
Minus: Non-operating expenses 7.50 265628 589363
4. Total profits (total loss is listed with “-”) 212007791 273080505
Minus: income tax expenses 7.51 68901273 81765775
5. Net profit (net loss is listed with “-”) 143106518 191314730
49Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
5.1 Classification by operation continuity
5.1.1 Net profit from continuing operation (net loss is listed
143106518191314730
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 company 140515805 185597142
5.2.2 Minority interest income 2590713 5717588
6. Net after-tax amount of other comprehensive income 7.52 -13172537 14870571
Net after-tax amount of other comprehensive income attributable
-1175512413583338
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 re-measuring 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 profit
-1175512413583338
and loss later
6.2.1 Other comprehensive income to be reclassified
into profit and loss under equity method
6.2.2 Changes in the fair value of other debt
investments
6.2.3 Amount of financial assets reclassified into other
comprehensive income
6.2.4 Provision for credit impairment of other credit
investments
6.2.5 Provision for cash-flow hedge
6.2.6 Difference in translation of Foreign Currency
-1175512413583338
Financial Statement
6.2.7 Other
Net after-tax amount of other comprehensive income attributable -1417413 1287233
50Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
to minority shareholders
7. Total comprehensive income 129933981 206185301
Attributable to owner of the parent company 128760681 199180480
Attributable to minority shareholders 1173300 7004821
8. Earnings per share:
8.1 Basic earnings per share 0.21 0.28
8.2 Diluted earnings per share 0.21 0.28
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
2.4 Profit statement of the parent company
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Note Amount incurred in this Amount incurred in prior
Item
period period
1. Operating income 18.4 156475319 162594967
Minus: Operating costs 18.4 138231034 145265979
Taxes and surcharges 5842654 3077351
Selling expenses
Administrative expenses 23083593 24273338
R&D expenses 362067 1672191
Financial expenses -6331159 -3745617
Including: Interest expenses 736182 890133
Interest income 7005240 7868873
Plus: Other profit 47939 1319967
Investment profit (loss is listed with “-”) 18.5 173495195 46246053
Including: Investment profit for joint-run 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 “-”) 898656 -288
Asset impairment loss (loss is listed with “-”)
Income from asset disposal (loss is listed with “-”)
2. Operating profit (loss is listed with “-”) 169728920 39617457
51Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
Plus: Non-operating income 1142570 194320
Minus: Non-operating expenses 158137 159997
3. Total profits (total loss is listed with “-”) 170713353 39651780
Minus: income tax expenses 1568848 2271268
4. Net profit (net loss is listed with “-”) 169144505 37380512
4.1 Net profit from continuing operation (net loss is listed with
16914450537380512
“-”)
4.2 Net profit from terminating operation (net loss is listed
with “-”)
5. Net after-tax amount of other comprehensive income
5.1 Other comprehensive income not to be reclassified into
profit and loss later
5.1.1 Changes after re-measuring and resetting the
benefit plans
5.1.2 Other comprehensive income not to be
reclassified into profit and loss under equity method
5.1.3 Changes in the fair value of other investments in
equity instruments
5.1.4 Changes in the fair value of the enterprise's own
credit risk
5.1.5 Other
5.2 Other comprehensive income to be reclassified into profit
and loss later
5.2.1 Other comprehensive income to be reclassified
into profit and loss under equity method
5.2.2 Changes in the fair value of other debt
investments
5.2.3 Amount of financial assets reclassified into other
comprehensive income
5.2.4 Provision for credit impairment of other credit
investments
5.2.5 Provision for cash-flow hedge
5.2.6 Difference in translation of Foreign Currency
Financial Statement
5.2.7 Other
6. Total comprehensive income 169144505 37380512
7. Earnings per share:
52Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
7.1 Basic earnings per share 0.26 0.06
7.2 Diluted earnings per share 0.26 0.06
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
2.5 Consolidated cash flow statement
Compiling unit: Yantai Changyu Pioneer Wine Co. Ltd. Unit: yuan
Note Amount incurred in this Amount incurred in prior
Item
period period
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services 1681034881 1660826081
Net increase in customer and interbank deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Cash received from receiving insurance premium of original
insurance contract
Net cash received from reinsurance business
Net increase in policy holder deposits and investment funds
Cash received from collecting interest handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchased business funds
Net cash received for buying and selling securities
Tax refund received 22453926 26792333
Other cash received related to operating activities 7.53 18053749 33768838
Subtotal of cash flows of operating activities 1721542556 1721387252
Cash paid for goods and services 548067483 673020392
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 219551512 224360824
Cash paid for taxes and expenses 317580578 339863955
53Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
Other cash paid related to operating activities 7.53 218107090 244720953
Sub-total of cash outflows of operating activities 1303306663 1481966124
Net cash flows from operating activities 418235893 239421128
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed deposits 18000000 39000000
Cash received from obtaining investment income
Cash received from obtaining interest income 122211 604684
Net cash received from disposal of fixed assets intangible
9025700110034498
assets and other long-term assets
Net cash received from disposal of branch and other business unit
Other cash received related to investing activities
Subtotal of cash flows of investment activities 27147911 149639182
Cash paid to acquire fixed assets intangible assets and other
2901868238733880
long-term assets
Cash for investment
Cash paid for purchasing fixed deposits 33000000 18000000
Net increase in hypothecated loan
Net cash paid for acquiring branch and other business unit
Other cash paid related to investment activities
Subtotal of cash outflows of investment activities 62018682 56733880
Net cash flow from investing activities -34870771 92905302
3. Cash flow from financing activities
Cash received from acquiring investment
Including: Cash received from acquiring minority shareholders
investment by branch
Cash received from acquiring loans 247817093 221495666
Other cash received related to financing activities
Subtotal cash flows of financing activities 247817093 221495666
Cash paid for paying debts 234205307 202716654
Cash paid for distributing dividend and profit or paying
171443666273324036
interest
Including: Dividend and profit paid to minority shareholders
by branch
Other cash paid related to financing activities 46102225 18237867
54Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Note Amount incurred in this Amount incurred in prior
Item
period period
Subtotal of cash outflows of financing activities 451751198 494278557
Net cash flow from financing activities -203934105 -272782891
4. Influences of exchange rate fluctuation on cash and cash
-13800001469544
equivalents
5. Net Increase in cash and cash equivalents 178051017 61013083
Plus: Balance at the beginning of the period of cash and cash
18391280891717727551
equivalents
6. Balance at the end of the period of cash and cash equivalents 2017179106 1778740634
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei 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 Amount incurred in this period Amount incurred in prior period
1. Cash flows from operating activities:
Cash received from sales of goods and
190714820198308091
rending of services
Tax refund received
Other cash received related to operating
1975588196891241
activities
Subtotal of cash flows of operating activities 388273639 205199332
Cash paid for goods and services 109344580 163211040
Cash paid to and on behalf of employees 25778082 27267075
Cash paid for taxes and expenses 17869533 14046037
Other cash paid related to operating
1351713327817643
activities
Sub-total of cash outflows of operating
166509328232341795
activities
Net cash flows from operating activities 221764311 -27142463
2. Cash flow from investing activities:
Cash received from disinvestment
Cash received from withdrawal of fixed
1800000039000000
deposits
Cash received from obtaining investment
193354636170723485
income
Cash received from obtaining interest 122211 604684
55Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
income
Net cash received from disposal of fixed
assets intangible assets and other long-term 9025700 110027000
assets
Net cash received from disposal of branch
and other business unit
Other cash received related to investing
40740704037406810
activities
Subtotal of cash flows of investment activities 627909587 357761979
Cash paid to acquire fixed assets
741702593416
intangible assets and other long-term assets
Cash for investment
Cash paid for purchasing fixed deposits 33000000 18000000
Net cash paid for acquiring branch and
other business unit
Other cash paid related to investment
3970000002000000
activities
Subtotal of cash outflows of investment
43007417022593416
activities
Net cash flow from investing activities 197835417 335168563
3. Cash flow from financing activities
Cash received from acquiring investment
Cash received from acquiring loans
Other cash received related to financing
activities
Subtotal cash flows of financing activities
Cash paid for paying debts
Cash paid for distributing dividend and
164843393269303366
profit or paying interest
Other cash paid related to financing
367101888956456
activities
Subtotal of cash outflows of financing activities 201553581 278259822
Net cash flow from financing activities -201553581 -278259822
4. Influences of exchange rate fluctuation on
cash and cash equivalents
5. Net Increase in cash and cash equivalents 218046147 29766278
Plus: Balance at the beginning of the
1022467647797907848
period of cash and cash equivalents
56Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Amount incurred in this period Amount incurred in prior period
6. Balance at the end of the period of cash and
1240513794827674126
cash equivalents
Legal Representative: Zhou Hongjiang Accounting Supervisor: Guo Cuimei Accounting Department Manager: Guo Cuimei
57Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
2.7 Consolidated owner's equities changing list
Unit: yuan
This period
Owner's equities of the parent company
Item Other equity Minus: Other Minority Total owner'sCapital instruments Capital Treasury comprehensive Special Surplus
General
stock reserves reserves reserves risk
Undistributed Others Subtotal equity equities
Preferred Perpetual Others stock income preparation
profits
stock bonds
1. Balance at the end of last year 657240128 364048502 37880941 -16329710 342732000 9037437598 10347247577 151291391 10498538968
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 657240128 364048502 37880941 -16329710 342732000 9037437598 10347247577 151291391 10498538968
3. Increased or decreased amount in this
period (reducing amount is listed with - ) 34873655 -11755124 -23794227 -70423006 784945 -69638061“ ”
3.1 Total comprehensive income -11755124 140515805 128760681 1173300 129933981
3.2 Owner's invested and reduced capital 34873655 -34873655 -34873655
3.2.1Owner's investedcommonstock 34873655 -34873655 -34873655
3.2.2 Other equity instrument holders'
invested capital
3.2.3 Amount of shares paid and reckoned in
owner's equities
3.2.4 Others
3.3 Profit distribution -164310032 -164310032 -388355 -164698387
3.3.1 Accrued surplus reserves
3.3.2. Drawn common risk provision
3.3.3 Distribution to owners (or
shareholders) -164310032 -164310032 -388355 -164698387
3.3.4 Others
3.4 Internal transfer of owner's equities
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3Surplus reserves coveringdeficit
3.4.4 Retained earnings carried over from
the benefit plan variation
58Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
3.4.5 Retained earnings carried over from
other comprehensive income
3.4.6 Others
3.5 Special reserves
3.5.1 Withdrawal in this period
3.5.2 Usage in this period
3.6 Others
4. Balance at the end of this period 657240128 364048502 72754596 -28084834 342732000 9013643371 10276824571 152076336 10428900907
Unit: yuan
First Half of 2025
Owner's equities of the parent company
Item Other equity
instruments Capital Minus: Other Special Surplus General
Minority Total owner's
Capital stock Treasury comprehensiv risk Undistributedreserves reserves reserves profits Others Subtotal
equity equities
Preferred Perpetual Others stock e income preparationstock bonds
1. Balance at the end of last year 671823900 482143547 70704426 -39714972 342732000 9232928370 10619208419 153346144 10772554563
Plus: Accounting policies
changing
Previous error correction
Others
2. Balance at the beginning of this year 671823900 482143547 70704426 -39714972 342732000 9232928370 10619208419 153346144 10772554563
3. Increased or decreased amount
in this period (reducing amount is 7150483 13583338 -83132418 -76699563 5691747 -71007816
listed with “-”)
3.1 Total comprehensive income 13583338 185597142 199180480 7004821 206185301
3.2 Owner's invested and reduced
capital 7150483 -7150483 -7150483
3.2.1Owner's invested common stock 7150483 -7150483 -7150483
3.2.2 Other equity instrument
holders' invested capital
3.2.3 Amount of shares paid and
reckoned in owner's equities
3.2.4 Others
3.3 Profit distribution -268729560 -268729560 -1313074 -270042634
59Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
3.3.1 Accrued surplus reserves
3.3.2 Accrued general risk
preparation
3.3.3 Distribution to owners (or
shareholders) -268729560 -268729560 -1313074 -270042634
3.3.4 Others
3.4 Internal transfer of owner's equities
3.4.1 Capital reserves transferred
and increased capital (or capital
stock)
3.4.2 Surplus reserves transferred
and increased capital (or capital
stock)
3.4.3 Surplus reserves covering
deficit
3.4.4 Retained earnings carried
over from the benefit plan amount
3.4.5 Retained earnings carried over
from other comprehensive income
3.4.6 Others
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Others
4. Balance at the end of this period 671823900 482143547 77854909 -26131634 342732000 9149795952 10542508856 159037891 10701546747
60Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
2.8 Owner's equities changing list of the parent company
Unit: yuan
This period
Item Other equity instruments
Capital stock Capital Minus:
Other Special Surplus Undistributed Total owner's
Preferred Perpetual Others reserves Treasury stock
comprehensive Others
income reserves reserves profits equitiesstock bonds
1. Balance at the end of last year 657240128 401287028 37880941 342732000 9810553230 11173931445
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 657240128 401287028 37880941 342732000 9810553230 11173931445
3. Increased or decreased amount in this
period (reducing amount is listed with - ) 34873655 4834473 -30039182“ ”
3.1 Total comprehensive income 169144505 169144505
3.2 Owner's invested and reduced capital 34873655 -34873655
3.2.1 Owner's invested common stock 34873655 -34873655
3.2.2 Other equity instrument holder's invested
capital
3.2.3 Amount of shares paid and reckoned in
owner's equities
3.2.4 Others
3.3 Profit distribution -164310032 -164310032
3.3.1 Accrued surplus reserves
3.3.2 Distribution to owners (or shareholders) -164310032 -164310032
3.3.3 Others
3.4 Internal transfer of owner's equities
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over from the
benefit plan amount
61Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
3.4.5 Retained earnings carried over from
other comprehensive income
3.4.6 Others
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Others
4.Balance at the end of this period 657240128 401287028 72754596 342732000 9815387703 11143892263
Unit: yuan
First Half of 2025
Item Other equity instruments
Capital stock Capital reserves Minus:
Other
comprehensive Special Surplus Undistributed Others Total owner'sPreferred Perpetual Others Treasury stock income reserves reserves profits equitiesstock bonds
1. Balance at the end of last year 671823900 519382073 70704426 342732000 9825895684 11289129231
Plus: Accounting policies changing
Previous error correction
Others
2. Balance at the beginning of this year 671823900 519382073 70704426 342732000 9825895684 11289129231
3. Increased or decreased amount in this
period (reducing amount is listed with - ) 7150483 -231349048 -238499531“ ”
3.1 Total comprehensive income 37380512 37380512
3.2 Owner's invested and reduced capital 7150483 -7150483
3.2.1 Owner's invested common stock 7150483 -7150483
3.2.2 Other equity instrument holder's invested
capital
3.2.3 Amount of shares paid and reckoned in
owner's equities
3.2.4 Others
3.3 Profit distribution -268729560 -268729560
3.3.1 Accrued surplus reserves
3.3.2 Distribution to owners (or shareholders) -268729560 -268729560
62Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
3.3.3 Others
3.4 Internal transfer of owner's equities
3.4.1 Capital reserves transferred and
increased capital (or capital stock)
3.4.2 Surplus reserves transferred and
increased capital (or capital stock)
3.4.3 Surplus reserves covering deficit
3.4.4 Retained earnings carried over from the
benefit plan amount
3.4.5 Retained earnings carried over from
other comprehensive income
3.4.6 Other
3.5 Special reserves
3.5.1 Accrual in this period
3.5.2 Usage in this period
3.6 Others
4. Balance at the end of this period 671823900 519382073 77854909 342732000 9594546636 11050629700
63Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
3. Company profile
Yantai Changyu Pioneer Wine Co. Ltd. (the “Company” or the “Joint-stock Company”)
was incorporated as a joint-stock limited company in accordance with the Company Law of
the People's Republic of China (the “PRC”) in the merger and reorganization carried out by
Yantai Changyu Group Co. Ltd. (“Changyu Group”) with its assets and liabilities in relation
to wine business. The Company and its subsidiary companies (hereinafter collectively
referred to as the “Group”) are engaged in the production and sale of wine brandy and
sparkling wine planting and purchase of grapes development of tourism resources etc. The
registered address of the Company is Yantai City Shandong Province and the office address
of the headquarters is 56 Dama Road Zhifu District Yantai City Shandong Province.As on June 30 2026 the Company issued 657240128 shares accumulatively. Refer to Note
7.32 for details.
The parent company of the Group is Changyu Group incorporated in China which was
ultimately and actually controlled by four parties including Yantai Guofeng Investment
Holding Group Co. Ltd. ILLVA Saronno Holding Spa International Finance Corporation
and Yantai Yuhua Investment & Development Co. Ltd.The financial statement and the consolidated financial statement of the Company were
approved by the Board of Directors on August 19 2026.The details of scope of the consolidated financial statement in this period can be seen in Note
10 “Equity in other entities”.
4. Preparation basis of financial statement
4.1 Preparation basis
The Company prepares the financial statement on the basis of continuous operation.
4.2 Continuous operation
The Group has appraised the ability of continuous operation for 12 months from June 30
2026 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 on June 30 2026 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 2026.
64Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
In addition the financial statement of the Company also complies with the related disclosure
requirements for statement and its notes stipulated by Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on
Financial Reports (2023 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 Company takes the period from the acquisition of assets for processing to the realization
of cash or cash equivalents as its normal operating cycle. 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. In preparing these financial statements the foreign
currency financial statements of overseas subsidiaries have been translated in accordance
with Note 5.9.
5.5 Determination method and selection criteria for significant standards
Item Significant standards
Other significant payables / accounts Single of other payables / accounts payable with
payable with an aging of over 1 year an aging of over 1 year exceeding 0.5% of theGroup's total liabilities
Single of construction in progress with the
Significant construction in progress carrying amount exceeding 0.5% of the Group's
noncurrent assets
Non-wholly-owned subsidiary with the book
Significant non-wholly-owned subsidiary value of net assets attributable to minorityshareholders exceeding 0.5% of the Group's net
assets
Long-term equity investment in a single joint
Significant joint venture or associate venture or associate with a carrying amount
exceeding 0.5% of the Group's net assets
Significant cash flows from investing Single of cash flows with the amount exceeding
activities 0.5% of the Group's total assets
65Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
5.6 Accounting treatment method for business combination under common control and
non-common control
If the Group obtains control over one or more enterprises (or a group of assets or net assets)
and such transaction or event constitutes a business it shall be accounted for as a business
combination. Business combinations are classified into business combination under common
control and business combination under non-common control.For a business combination not under common control when assessing whether the acquired
set of assets or net assets constitutes a business the acquirer may consider applying the
“concentration test” as a simplified assessment. If the acquired set passes the concentration
test it shall be determined not to constitute a business. If it does not pass the concentration
test it shall be assessed against the business criteria.When the Group acquires a set of assets or net assets that does not constitute a business the
acquisition cost shall be allocated to the identifiable assets and liabilities acquired at their
relative fair values on the acquisition date rather than applying the accounting treatment for a
business combination.
5.6.1 Business combination under common control
A business combination under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or same multiple parties
before and after the combination and that control is not transitory. The assets and liabilities
obtained by the combining party in the business combination shall be measured on the basis
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 Group's share of 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 deficit shall be applied in sequence
against the surplus reserve and then the undistributed profits. If the stock premium in capital
surplus is not sufficient to offset the deficit shall be applied in sequence against the surplus
reserve and then the undistributed profits. The direct related expenses incurred for the
business combination shall be included in the current profit and loss when incurred. The
combination date is the date on which the combining party actually obtains control of the
combined party.
5.6.2 Business combination under non-common control
A business combination under non-common control is a business combination in which all of
the combining parties are not ultimately controlled by the same party or same multiple parties
before and after the combination. The sum of fair values of the assets paid by the Group as
the acquirer (including the acquiree's equity the Group held before the acquisition date)
liabilities incurred or assumed and the equity securities issued on the acquisition date in
exchange for the control over the acquiree shall deduct the fair value of the acquiree's
identifiable net assets acquired in the combination on the acquisition date. After considering
the effect of related deferred income taxes if the difference is positive it shall be recognized
as goodwill; and if it is negative it shall be included in the current profit and loss. The direct
expenses incurred for the business combination by the Group shall be included in the current
66Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
profit and loss. All the identifiable assets liabilities and contingent liabilities which are
obtained from the acquiree and meet the recognition conditions shall be confirmed by the
Group on the acquisition date according to the fair value thereof. The acquisition date is the
date on which the acquirer actually obtains control of the acquiree.For a business combination involving entities not under common control and achieved in
stages the Group re-measures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognizes any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. Other comprehensive income and other changes in owner's equities that can be
reclassified into profit or loss under the equity method of accounting for the equity interest of
the acquiree held before acquisition date shall be transferred to current investment income on
the purchase date; and if equity interests of the acquiree held before acquisition date are
equity instrument investments measured at fair value with changes recognized in other
comprehensive income other comprehensive income recognized before acquisition date shall
be transferred to retained earnings on acquisition date.
5.7 Determination standard of control and compiling methods of consolidated financial
statement
5.7.1 General principles
The consolidation scope of the consolidated financial statements is determined based on
control including the Company and its controlled subsidiaries. Control refers to the Group's
power over the investee enjoying variable returns through participation in related activities
of the investee and having the ability to use its power over the investee to influence its return
amount. When determining whether the Group has power over the investee the Group only
considers substantive rights related to the investee (including substantive rights enjoyed by
the Group itself and other parties). The financial condition operating performance and cash
flows of the subsidiaries shall be included in the consolidated financial statements from the
date of control to the date of control termination.The equity profit and loss and total comprehensive income attributable to minority
shareholders of the subsidiaries shall be separately presented in the shareholders' equity
section of the consolidated balance sheet and the net profit and total comprehensive income
section of the consolidated profit statement.If the current losses shared by minority shareholders of the subsidiaries exceed their share of
the subsidiaries' initial owner's equity the balance shall still be offset against the minority
equity.When the accounting period or accounting policies of a subsidiary are different from those of
the Company the Company has made necessary adjustments to the financial statements of
the subsidiary based on the Company's own accounting period or accounting policies. All
intra-group transactions and balances during the combination including unrealized
intra-group transactions gains and losses have been offset. If there is evidence that unrealized
losses incurred in intra-group transactions are related to impairment losses of assets the full
amount of such losses shall be recognized.
67Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
5.7.2 Subsidiaries acquired through a business combination
Where a subsidiary is acquired through a business combination involving entities under
common control when preparing the consolidated financial statements for current period
based on the carrying amounts of the assets and liabilities of the combined subsidiary in the
financial statements of the ultimate controlling party the combined subsidiary shall be
deemed to be included in the consolidation scope of the Company when the ultimate
controlling party of the Company begins to exercise control over it and the initial balance
and the comparative figures of the consolidated financial statements shall be correspondingly
adjusted.Where a subsidiary is acquired through a business combination involving entities not under
common control when preparing the consolidated financial statements for current period
based on the fair value of identifiable assets and liabilities of the acquired subsidiary
determined on the acquisition date the acquired subsidiary shall be included in the
consolidation scope of the Company from the acquisition date.
5.7.3 Disposal of subsidiaries
When the Group loses control over a subsidiary any resulting disposal gains or losses are
recognized as investment income for the current period. The remaining equity investment is
re-measured at its fair value at the date when control is lost any resulting gains or losses are
also recognized as investment income for the current period.When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;
- one arrangement considered on its own is not economically justified but it is
economically justified when considered together with other arrangements.If each of the multiple transactions does not form part of a bundled transaction the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in
subsidiaries where control is retained.If each of the multiple transactions forms part of a bundled transaction each transaction shall
be treated as a transaction for disposing of the existing subsidiary and losing control. The
difference between the disposal price and the net carrying value of the subsidiary that is
continuously calculated from the acquisition date corresponding to the disposal investment
before losing control shall be included in other comprehensive income in the consolidated
financial statements and be transferred when losing control to profit or loss of the period
losing control.
68Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
5.7.4 Changes in minority equity
The difference between the cost of long-term equity investment acquired by the Company
through the purchase of minority equity and the net asset share of the subsidiary calculated
based on the newly increased shareholding ratio as well as the difference between the
disposal price obtained from partial disposal of equity investment in the subsidiary without
losing control and the net asset share of the subsidiary corresponding to the disposal of
long-term equity investment shall be adjusted to the capital reserve (share premium) in the
consolidated balance sheet. And if the capital reserve (share premium) is insufficient to
offset the deficit shall be applied in sequence against the surplus reserve and then the
undistributed profits.
5.8 Determination standard of cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be used for payment at
any time and short-term highly liquid investments which are readily convertible into known
amount of cash with an insignificant risk of changes in value.
5.9 Foreign currency transaction and foreign currency statement translation
When the Group receives capital in foreign currencies from investors the capital is translated
to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency
transactions are on initial recognition translated to Renminbi at the spot exchange rates.Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognized in current profit or loss unless they arise from the re-translation of the principal
and interest of specific borrowings for the acquisition and construction of qualifying assets.Non-monetary items that are measured at historical cost in foreign currencies are translated to
Renminbi using the exchange rate at the transaction date.In translating the financial statements of a foreign operation assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items excluding undistributed profit and the translation differences in other
comprehensive income are translated to Renminbi at the spot exchange rates at the
transaction date. Income and expenses in the income statement are translated to Renminbi at
the spot exchange rates at the transaction date. The resulting translation differences generated
by the above conversion are recognized in other comprehensive income. The translation
differences accumulated in other comprehensive income with respect to a foreign operation
are transferred to profit or loss in the period when the foreign operation is disposed.
5.10 Financial instruments
Financial instruments include cash at bank and on hand investments in debt and equity
securities other than those classified as long-term equity investments receivables payables
loans and borrowings and share capital.
69Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
5.10.1 Recognition and initial measurement of financial assets and financial liabilities
A financial asset and financial liability is recognized in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.A financial asset (unless it is a trade receivable without a significant financing component)
and financial liability is measured initially at fair value. For financial assets and financial
liabilities at fair value through profit or loss any related directly attributable transaction costs
are charged to profit or loss; for other categories of financial assets and financial liabilities
any related attributable transaction costs are included in their initial costs. Accounts
receivable containing no significant financing component or not considering financing
component of contracts that do not exceed one year are measured initially at transaction
prices determined by the accounting policies set out in Note 5.22.
5.10.2 Classification and subsequent measurement of financial assets
(a) Classification of financial assets of this Group
The classification of financial assets is generally based on the business model in which a
financial asset is managed and its contractual cash flow characteristics. On initial recognition
a financial asset is classified as measured at amortized 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 amortized cost if it meets both of the following conditions
and is not designated as at FVTPL:
-it is held within a business model whose objective is to hold assets to collect contractual
cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.A debt investment is measured at FVOCI if it meets both of the following conditions and is
not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.On initial recognition of an equity investment that is not held for trading the Group may
irrevocably elect to present subsequent changes in the investment's fair value in other
comprehensive income. This election is made on an investment-by-investment basis. The
70Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
instrument meets the definition of equity from the perspective of the issuer.All financial assets not classified as measured at amortized cost or FVOCI as described above
are measured at FVTPL. On initial recognition the Group may irrevocably designate a
financial asset that otherwise meets the requirements to be measured at amortized cost or at
FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.The business model refers to how the Group manages its financial assets in order to generate
cash flows. That is the Group's business model determines whether cash flows will result
from collecting contractual cash flows selling financial assets or both. The Group determines
the business model for managing the financial assets according to the facts and based on the
specific business objective for managing the financial assets determined by the Group's key
management personnel.In assessing whether the contractual cash flows are solely payments of principal and 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 recognized in profit or loss unless the financial
assets are part of a hedging relationship.- Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method.A gain or loss on a financial asset that is measured at amortized cost and is not part of a
hedging relationship shall be recognized in profit or loss when the financial asset is
derecognized and reclassified through the amortization process or in order to recognize
impairment gains or losses.- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the
effective interest method impairment and foreign exchange gains and losses are recognized
in profit or loss. Other net gains and losses are recognized in other comprehensive income.On derecognition gains and losses accumulated in other comprehensive income are
reclassified to profit or loss.
71Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income in
profit or loss. Other net gains and losses are recognized in other comprehensive income. On
derecognition gains and losses accumulated in other comprehensive income are reclassified
to retained earnings.
5.10.3 Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortized cost by the Group.- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses including any interest expense are recognized in profit or loss unless the financial
liabilities are part of a hedging relationship.- Financial liabilities at amortized cost
These financial liabilities are subsequently measured at amortized cost using the effective
interest method.
5.10.4 Offsetting
Financial assets and financial liabilities are generally presented separately in the balance
sheet and are not offset. However a financial asset and a financial liability are offset and the
net amount is presented in the balance sheet when both of the following conditions are
satisfied:
- The Group currently has a legally enforceable right to set off the recognized amounts；
- The Group intends either to settle on a net basis or to realize the financial asset and settle
the financial liability simultaneously.
5.10.5 Derecognition of financial assets and financial liabilities
Financial asset is derecognized when one of the following conditions is met:
- the contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or
- the financial asset has been transferred although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset it does not retain
control over the transferred asset.
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Where a transfer of a financial asset in its entirety meets the criteria for derecognition the
difference between the two amounts below is recognized in current profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and when the transferred
financial asset is a debt investment at FVOCI any cumulative gain or loss that has been
recognized directly in other comprehensive income for the part derecognized.The Group derecognizes a financial liability (or part of it) only when its contractual
obligation (or part of it) is extinguished.
5.10.6 Impairment
The Group recognizes loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortized cost;
- financial investments at fair value through other comprehensive income.Financial assets measured at fair value including debt investments or equity securities at
FVPL equity securities designated at FVOCI and derivative financial assets are not subject
to the ECL assessment.Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity
in accordance with the contract and the cash flows that the Group expects to receive).The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.ECLs within the next 12 months refers to the ECLs that may occur due to a financial
instrument default event within 12 months after the balance sheet date (if the expected
duration of the financial instrument is less than 12 months it is within the expected duration)
and is a part of the ECLs for the entire duration.For bills receivable accounts receivable accounts receivable financing generated from daily
business activities such as selling goods and providing services loss allowance always
measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated
using a provision matrix based on the Group's historical credit loss experience adjusted for
factors that are specific to the debtors and an assessment of both the current and forecast
general economic conditions at the balance sheet date.
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For assets other than bills receivable accounts receivable accounts receivable financing that
meet one of the following conditions loss allowance are measured at an amount equal to
12-month ECLs. For all other financial instruments the Group recognizes a loss allowance
equal to lifetime ECLs:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
or
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.Bad debt provision for accounts receivable
(a) Combination categories and determination criteria for bad debt provision based on credit
risk characteristics
According to the different credit risk characteristics of the acceptor the Group divides
Bills receivable bills receivable into two combinations: bank acceptance bills and commercial
acceptance bills.Based on the historical experience of this Group there is no significant difference in
Accounts the occurrence of losses among different segmented customer groups. Therefore this
receivable Group considers all accounts receivable as a combination and does not furtherdifferentiate between different customer groups when calculating the bad debt
provision for accounts receivable.Accounts The accounts receivable financing of this Group is for accounts receivable bank
receivable acceptance bills with dual holding purposes. Due to the fact that the accepting banks
financing are all banks with high credit ratings this Group considers all accounts receivablefinancing as a combination.The other receivables of this Group mainly include deposits receivable and security
deposits. Based on the nature of accounts receivable and the credit risk characteristics
Other receivables of different counterparties the Group divides other accounts receivable into two
combinations namely: combination of deposits receivable and security deposits and
combination of other accounts receivable.(b) Determination criteria for single provision of bad debt reserves based on individual
provision
For bills receivable accounts receivable accounts receivable financing and other accounts
receivable the Group usually measures its loss provision based on a combination of credit
risk characteristics. If the credit risk characteristics of a counterparty are significantly
different from those of other counterparties in the portfolio or if there is a significant change
in the credit risk characteristics of that counterparty a separate provision for loss shall be
made for accounts receivable from that counterparty. For example when a counterparty
experiences serious financial difficulties and the ECL rate of accounts receivable from that
counterparty is significantly higher than the ECL rate of its aging range a separate provision
for loss shall be made for it.Financial instruments that have low credit risk
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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 assesses whether the credit risk of a financial instrument has
increased significantly since initial recognition by comparing the risk of default at the
balance sheet date with that 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.The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than 30 days past due.Credit-impaired financial assets
At each balance sheet date the Group assesses whether financial assets carried at amortized
cost and debt investments at FVOCI are credit-impaired. A financial asset is
‘credit-impaired' when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred. Evidence that a financial asset is
credit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower's financial difficulty the
Group having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganization; or
- the disappearance of an active market for that financial asset because of financial
difficulties.
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Presentation of allowance for ECL
ECLs are re-measured at each balance sheet date to reflect changes in the financial
instrument's credit risk since initial recognition. Any change in the ECL amount is recognized
as an impairment gain or loss in profit or loss. The Group recognizes an impairment gain or
loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account except for debt investments that are measured at FVOCI
for which the loss allowance is recognized in other comprehensive income.Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group's procedures for recovery of
amounts due.Subsequent recoveries of an asset that was previously written off are recognized as a reversal
of impairment in profit or loss in the period in which the recovery occurs.
5.10.7 Equity instrument
The consideration received from the issuance of equity instruments is recognized in
shareholders' equity at the actual issue price with the related transaction costs deducted from
shareholders' equity (capital reserve). And if the capital reserve (share premium) is
insufficient to offset the deficit shall be applied in sequence against the surplus reserve and
then the undistributed profits. 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.Upon the cancellation of treasury shares share capital shall be reduced by the total par value
of the shares cancelled. Where the cost of the treasury shares exceeds their total par value the
excess shall be applied in sequence against the capital reserve (share premium) the surplus
reserve and then the undistributed profits. Where the cost of the treasury shares is lower than
their total par value the shortfall shall be credited to the capital reserve (share premium).
5.11 Inventories
5.11.1 Inventory categories
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
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conversion and other expenditure incurred in bringing the inventories to their present location
and condition. In addition to the purchase cost of raw materials work in progress and
finished goods include direct labor costs and an appropriate allocation of production
overheads.Agricultural products harvested are reported in accordance with the Accounting Standard for
Business Enterprises No. 1 - Inventories.
5.11.2 Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
5.11.3 Inventory count system
The Group maintains a perpetual inventory system.
5.11.4 Amortization method for low-value consumables and packaging materials
Consumables including low-value consumables and packaging materials are amortized when
they are used. The amortization charge is included in the cost of the related assets or
recognized in profit or loss for the current period.
5.11.5 Basis for determining the net realizable value and method for provision for obsolete
inventories
At the balance sheet date inventories are carried at the lower of cost and net realizable value.Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and relevant
taxes. The net realizable value of materials held for use in the production is measured based
on the net realizable value of the finished goods in which they will be incorporated. The net
realizable value of the inventory held to satisfy sales or service contracts is measured based
on the contract price to the extent of the quantities specified in sales contracts and the excess
portion of inventories is measured based on general selling prices.Any excess of the cost over the net realizable value of each item of inventories is recognized
as a provision for impairment and is recognized in profit or loss.
5.12 Long-term equity investments
5.12.1 Investment cost determination of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combination
involving entities under common control is the Company's share of the carrying amount of
the subsidiary's equity in the consolidated financial statements of the ultimate controlling
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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 deficit applied in sequence against the surplus reserve and then the
undistributed profits. For a long-term equity investment in a subsidiary acquired through a
business combination achieved in stages which do not form a bundled transaction and
involving entities under common control the Company determines the initial cost of the
investment in accordance with the above policies. The difference between this initial cost and
the sum of the carrying amount of previously-held investment and the consideration paid for
the shares newly acquired is adjusted to capital premium in the capital reserve with any
deficit applied in sequence against the surplus reserve and then the undistributed profits .- For a long-term equity investment obtained through a business combination not involving
enterprises under common control the initial cost comprises the aggregate of the fair value of
assets transferred liabilities incurred or assumed and equity securities issued by the
Company in exchange for control of the acquiree. For a long-term equity investment
obtained through a business combination not involving entities under common control and
achieved through multiple transactions in stages which do not form a bundled transaction the
initial cost comprises the carrying amount of the previously-held equity investment in the
acquiree immediately before the acquisition date and the additional investment cost at the
acquisition date.(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is
initially recognized at the amount of cash paid if the Group acquires the investment by cash
or at the fair value of the equity securities issued if an investment is acquired by issuing
equity securities.
5.12.2 Subsequent measurement and profit and loss recognition methods of long-term equity
investment
(a) Investments in subsidiaries
In the Company's separate financial statements long-term equity investments in subsidiaries
are accounted for using the cost method unless the investment is classified as held for sale.Except for cash dividends or profit distributions declared but not yet distributed that have
been included in the price or consideration paid in obtaining the investments the Company
recognizes its share of the cash dividends or profit distributions declared by the investee as
investment income for the current period.The investments in subsidiaries are stated in the balance sheet at cost less impairment losses.For the impairment testing method and impairment provision method of the investments in
subsidiaries refer to Note 5.21.In the Group's consolidated financial statements subsidiaries are accounted for in accordance
with the policies described in Note 5.6.(b) Investments in joint ventures and associates
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A joint venture is an arrangement whereby the Group and other parties have joint control and
rights to the net assets of the arrangement.An associate is an enterprise the Group can exert significant influence on.A long-term equity investment in a joint venture and associate is accounted for using the
equity method for subsequent measurement unless the investment is classified as held for
sale.The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group's interest in the
fair value of the investee's identifiable net assets at the date of acquisition the investment is
initially recognized at cost. Where the initial investment cost is less than the Group's interest
in the fair value of the investee's identifiable net assets at the date of acquisition the
investment is initially recognized at the investor's share of the fair value of the investee's
identifiable net assets and the difference is recognized in current profit or loss.- After the acquisition of the investment in joint ventures and associates the Group
recognizes its share of the investee's profit or loss and other comprehensive income as
investment income or losses and other comprehensive income respectively and adjusts the
carrying amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions the carrying amount of the investment is reduced by the
amount attributable to the Group. Changes in the Group's share of the investee's owners'
equity other than those arising from the investee's net profit or loss other comprehensive
income or profit distribution (referred to as“other changes in owners' equity”) is recognized
directly in the Group's equity and the carrying amount of the investment is adjusted
accordingly.- In calculating its share of the investee's net profits or losses other comprehensive income
and other changes in owners' equity the Group recognizes investment income and other
comprehensive income after making appropriate adjustments to align the accounting policies
or accounting periods with those of the Group based on the fair value of the investee's
identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from
transactions between the Group and its associates or joint ventures are eliminated to the
extent of the Group's interest in the associates or joint ventures. Unrealized losses resulting
from transactions between the Group and its associates or joint ventures are eliminated in the
same way as unrealized gains but only to the extent that there is no impairment.- The Group discontinues recognizing its share of further losses of the investee after the
carrying amount of the long-term equity investment and any long-term interest that in
substance forms part of the Group's net investment in the associate is reduced to zero except
to the extent that the Group has an obligation to assume additional losses. If the joint venture
or the associate subsequently reports net profits the Group resumes recognizing its share of
those profits only after its share of the profits equals the share of losses not recognized.
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For the impairment testing method and impairment provision method of the investments in
joint ventures and associates of this Group refer to Note 5.21.
5.12.3 Criteria for determining the existence of joint control and significant impact over an
investee
Joint control is the contractually agreed sharing of control of an arrangement which exists
only when decisions about the relevant activities (activities with significant impact on the
returns of the arrangement) require the unanimous consent of the parties sharing control.The following factors are usually considered when assessing whether the Group can exercise
joint control over an investee:
- Whether no single participant party is in a position to control the investee's related
activities unilaterally;
- Whether strategic decisions relating to the investee's related activities require the
unanimous consent of all participant parties that sharing of control.Significant influence is the power to participate in the financial and operating policy
decisions of an investee but does not have control or joint control over those policies.
5.13 Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost model and
stated in the balance sheet at cost less accumulated depreciation amortization and
impairment losses and adopts a depreciation or amortization policy for the investment
property which is consistent with that for buildings or land use rights unless the investment
property is classified as held for sale. For the impairment testing method and impairment
provision method refer to Note 5.21.Category Useful life (years) Residual value rate Annual depreciation(%) rate (%)
Plant and buildings 20-40 years 0-5% 2.4%-5.0%
5.14 Fixed assets
5.14.1 Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods
supply of services for rental or for administrative purposes with useful lives over one
accounting year.The initial cost of a purchased fixed asset comprises the purchase price related taxes and
any attributable expenditure for bringing the asset to working condition for its intended use.The initial cost of self-constructed fixed assets is measured in accordance with the policy set
out in Note 5.15.
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Where the parts of an item of fixed assets have different useful lives or provide benefits to the
Group in a different pattern thus necessitating use of different depreciation rates or methods
each part is recognized as a separate fixed asset.For any subsequent cost of fixed assets including the cost of replacing part of an item of
fixed assets when it is probable that the economic benefits associated with the costs will flow
to the Group it shall be capitalized and included in the cost of fixed assets and the carrying
amount of the replaced part is derecognized meanwhile; and the costs related to the
day-to-day maintenance of fixed assets shall be recognized in current profit or loss as
incurred.Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
5.14.2 Depreciation of fixed assets
The cost of a fixed asset less its estimated residual value and accumulated impairment losses
is depreciated using the straight-line method over its estimated useful life unless the fixed
asset is classified as held for sale.The useful lives residual value rates and annual depreciation rates of each class of fixed
assets are as follows:
Class Useful life (years) Residual value rate Annual depreciation 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.
5.14.3 For impairment testing method and impairment provision method refer to Note 5.21.
5.14.4 Disposal of fixed assets
The Group will derecognize of a fixed asset when meeting one of the following conditions:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying amount of
the item and are recognized in profit or loss on the date of retirement or disposal.
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5.15 Construction in progress
The cost of self-constructed fixed assets includes the cost of materials direct labor
capitalized borrowing costs and necessary costs attributable to bringing the asset to working
condition for its intended use.A self-constructed fixed asset is classified as construction in progress and transferred to fixed
asset when it is ready for its intended use. No depreciation is provided against construction in
progress.Criteria and timing for transfer of construction in progress to fixed assets
Category Criteria and Timing for Transfer to fixed assets
(1) The main construction and supporting works have been
substantially completed; (2) The construction meets the
design specifications and has passed inspections by the
surveying design construction and supervision and other
Buildings and institutions; (3) Acceptance inspections have been completed
Structures by external authorities such as fire safety land and planningdepartments; (4) If the construction reaches the intended
usable condition but the completion settlement has not yet
been finalized it shall be transferred to fixed assets from the
date it reaches the intended usable condition based on the
estimated construction cost.
(1) Relevant equipment and other supporting facilities have
been fully installed; (2) The equipment has been tested and
Machinery and can maintain normal and stable operation over a period of
Equipment time; (3) The production equipment can produce qualifiedproducts consistently over a period of time; (4) The
equipment has been accepted by asset management
personnel and users.Construction in progress is stated in the balance sheet at cost less impairment losses (see
Note 5.21).If an enterprise sells products or by-products produced by fixed assets before they reach their
intended usable state to the outside parties in accordance with the provisions of Accounting
Standards for Business Enterprises No. 14 – Revenue and Accounting Standards for
Business Enterprises No. 1 – Inventories relevant income and costs shall be accounted for
separately and included in profit or loss for the current period.
5.16 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction or
production of a qualifying asset are capitalized as part of the cost of the asset. Other
borrowing costs are recognized as financial expenses when incurred.
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During the capitalization period the amount of interest (including amortization of any
discount or premium on borrowing) to be capitalized in each accounting period is determined
as follows:
- Where funds are borrowed specifically for the acquisition and construction or production
of a qualifying asset the amount of interest to be capitalized is the interest expense calculated
using effective interest rates during the period less any interest 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 capitalization is determined by applying a capitalization rate to the weighted average of
the excess amounts of cumulative expenditure on the asset over the above amounts of
specific borrowings. The capitalization rate is the weighted average of the interest rates
applicable to the general-purpose borrowings.The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or when appropriate a shorter period to
the initially recognized amount of the borrowings.During the capitalization period exchange differences related to the principal and interest on
a specific-purpose borrowing denominated in foreign currency are capitalized as part of the
cost of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognized as a
financial expense when incurred.The capitalization period is the period from the date of commencement of capitalization of
borrowing costs to the date of cessation of capitalization excluding any period over which
capitalization is suspended. Capitalization of borrowing costs commences when expenditure
for the asset is being incurred borrowing costs are being incurred and activities of
acquisition construction or production that are necessary to prepare the asset for its intended
use are in progress and ceases when the assets become ready for their intended use.Capitalization of borrowing costs should cease when the qualifying asset being constructed or
produced has reached its expected usable or saleable condition. Capitalization of borrowing
costs is suspended when the acquisition construction or production activities are interrupted
abnormally for a period of more than three months.
5.17 Biological assets
The biological assets of the Group are productive biological assets.Productive biological assets are biological assets held for the purposes of producing
agricultural produce rendering of services or rental. Productive biological assets in the Group
are vines. Productive biological assets are initially measured at cost. The cost of self-grown
83Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
or self-bred productive biological assets represents the necessary attributable expenditure
incurred before satisfying the expected production and operating purpose including
capitalized borrowing costs.Productive biological assets after reaching the expected production and operating purpose
are depreciated using the straight-line method over its useful life. The useful lives estimated
net residual value rates and annual depreciation rates of productive biological assets are as
follows:
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 residential value by considering the
normal producing life of the productive biological assets.Useful lives estimated residual values and depreciation methods of productive biological
assets are reviewed at least at each year-end. Any changes should be treated as changes in
accounting estimates.For a productive biological asset that has been sold damaged dead or destroyed any
difference between the disposal proceeds and the carrying amount of the asset (after tax
deduction) should be recognized in profit or loss for the period in which it arises.
5.18 Intangible assets
Service life and amortization method
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where
the estimated useful life is finite) and impairment losses (see Note 5.21). For an intangible
asset with finite useful life its cost estimated less residual value and accumulated impairment
losses is amortized on the straight-line method over its estimated useful life unless the
intangible asset is classified as held for sale.The respective service life determination basis and amortization method for intangible
assets are as follows:
Item Useful life (years) Determination basis Amortization method
Land use right 40 – 50 years Period of land use rights Straight-line method
The shorter one of software
Software use right 5 – 10 years service life or expected Straight-line method
service life
Trademark rights 10 years The shorter one of duration Straight-line method
of trademark rights or
84Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Useful life (years) Determination basis Amortization method
expected service life
The useful life and amortization method of intangible assets with limited useful life are
reviewed at least at each year-end.An intangible asset is regarded as having an indefinite useful life and is not amortized when
there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group. At the balance sheet date the Group had intangible assets
with infinite useful lives including the land use rights and trademarks. Land use rights with
infinite useful lives are permanent land use rights with permanent ownership held by the
Group under the relevant Chile and Australian laws arising from the Group's acquisition of
Ndomita Wine Company Chile Spa (“Chile Indomita Wine Group”) and the acquisition of
Kilikanoon Estate Pty Ltd ( “ Australia Kilikanoon Estate ” ) therefore there was no
amortization. The right to use trademark refers to the trademark held by the Group arising
from the acquisition of the Chile Indomita Wine Group and the Australia Kilikanoon Estate
with infinite useful lives. The valuation of trademark was based on the trends in the market
and competitive environment product cycle and managing long-term development strategy.Those bases indicated the trademark will provide net cash flows to the Group within an
uncertain period. The useful life is indefinite as it was hard to predict the period that the
trademark would bring economic benefits to the Group.
5.19 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer's
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.Goodwill is not amortized and is stated in the balance sheet at cost less accumulated
impairment losses (see Note 5.21). On disposal of an asset group or a set of asset groups any
attributable goodwill is written off and included in the calculation of the profit or loss on
disposal.
5.20 Long-term deferred expenses
The Group recognizes expenses that have been incurred and whose benefit period exceeds
one year as long-term deferred expenses.Long-term deferred expenses are amortized using a straight-line method within the benefit
period. The respective amortization periods for such expenses are as follows:
Item Amortization period
Land acquisition fees 50 years
Afforestation fees 5-20 years
Renovation costs 3-5 years
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Others 3 years
5.21 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based
on internal and external sources of information to determine whether there is any indication
of impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- productive biological asset
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses etc.If any indication exists the recoverable amount of the asset is estimated. In addition the
Group estimates the recoverable amounts of goodwill and intangible assets with infinite
useful lives at each year-end irrespective of whether there is any indication of impairment.Goodwill is allocated to each asset group or set of asset groups that is expected to benefit
from the synergies of the combination for the purpose of impairment testing.The recoverable amount of an asset (or asset group set of asset groups) is the higher of its
fair value (see Note 5.21) less costs to sell and its present value of expected future cash
flows.An asset group is composed of assets directly related to cash-generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.The present value of expected future cash flows of an asset is determined by discounting the
future cash flows estimated to be derived from continuing use of the asset and from its
ultimate disposal to their present value using an appropriate pre-tax discount rate.An impairment loss is recognized in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognized
accordingly. Impairment losses related to an asset group or a set of asset groups are allocated
first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset
groups and then to reduce the carrying amount of the other assets in the asset group or set of
asset groups on a pro rata basis. However such allocation would not reduce the carrying
amount of an asset below the highest of its fair value less costs to sell (if measurable) its
present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized it is not reversed in a subsequent period.
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5.22 Fair value measurement
Unless otherwise specified the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.When measuring fair value the Group takes into account the characteristics of the particular
asset or liability (including the condition and location of the asset and restrictions if any on
the sale or use of the asset) that market participants would consider when pricing the asset or
liability at the measurement date and uses valuation techniques that are appropriate in the
circumstances and for which sufficient data and other information are available to measure
fair value. Valuation techniques mainly include the market approach the income approach
and the cost approach.
5.23 Estimated liabilities
If the obligation related to contingencies is a current obligation undertaken by the Group and
the performance of such obligation is likely to result in the outflow of economic benefits
from the Group and the relevant amount can be reliably measured the Group will recognize
the estimated liability.The estimated liabilities are initially measured based on the best estimate of the expenses
required to fulfill the relevant current obligations. For assets that have a significant impact on
the time value of money the estimated liability is determined by discounting the estimated
future cash flows. When determining the best estimate the Group takes into account factors
such as risks uncertainties and time value of money related to contingencies. If the required
expenditure exists a continuous range and the likelihood of various outcomes occurring
within this range is the same the best estimate is determined based on the median value
within this range; and in other cases the best estimate is handled as follows:
- If the contingency involves a single item it shall be determined based on the most likely
amount to occur.- If the contingency involves multiple items it shall be determined based on various
possible outcomes and related probabilities.The Group reviews the carrying amount of estimated liabilities on the balance sheet date and
adjusts the carrying amount based on the current best estimate.
5.24 Share-based payment
5.24.1 Type of share-based payment
The share-based payment of this Group is equity-settled share-based payment.
5.24.2 Accounting treatment related to implementing share-based payment plan
87Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
- Equity-settled share-based payment
When the Group exchanges shares or other equity instruments for employee services the
equity instruments granted to employees shall be measured at fair value on the grant date. For
share-based payment transactions that are immediately exercisable upon grant the Group
recognizes the fair value of equity instruments as relevant costs or expenses on the grant date
and increases capital reserves accordingly. For share-based payment transactions that can
only be exercised after completing the vesting period for services or meeting the prescribed
performance conditions after the grant the Group will make the best estimate of the number
of feasible equity instruments on each balance sheet date during the vesting period based on
subsequent information such as changes in the number of feasible employees. Based on this
the services obtained in the current period will be included in relevant costs or expenses
according to the fair value of the equity instruments on the grant date and correspondingly
included in capital reserves.When the Group accepts services but does not have settlement obligations and the equity
instruments granted to employees are those of the ultimate controlling party of the Company
or its controlled subsidiaries other than the Group the Group will treat this share-based
payment plan as a share-based payment for equity settlement.
5.25 Revenue
Revenue refers to the gross inflow of economic benefits formed during the course of the
ordinary activities of the Group which may increase the shareholders' equities and is
irrelevant to the invested capital of the shareholders.The Group recognizes the revenue upon fulfillment of its performance obligations in the
contract that is the client obtains control right over the relevant goods or services.If there are two or more performance obligations under the contact which shall be fulfilled
the Group will apportion the transaction price to various individual performance obligations
in accordance with the relative proportion of separate selling prices of various goods or
services under these performance obligations on the commencement date of the contract and
measure and recognize the revenue in accordance with the transaction prices apportioned to
various individual performance obligations. The stand-alone selling price refers to the price at
which the Group sells goods or provides services to customers separately. If the stand-alone
selling price cannot be directly observed the Group comprehensively considers all the
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
88Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
received on behalf of third parties. The transaction price recognized by the Group does not
exceed the amount at which the accumulated recognized revenue will most likely not undergo
a significant reversal when the relevant uncertainty is eliminated. In the event that there is a
significant financing part in the contract the Group determines the transaction price based on
the amount payable in cash when the client obtains control right over the relevant goods or
services. The difference between the transaction price and the contract consideration shall be
amortized by the effective interest method during the contract period. From the day of the
enforcement of the contract the Group expects that the interval between the client's
acquisition of control right over the goods or services and the client's payment of the price
will not exceed one year regardless of the significant financing part in the contract.If the Group meets one of the following conditions the fulfillment of its performance
obligations in a certain period will be deemed or the fulfillment of its performance
obligations at a certain time point will be deemed:
- The client obtains and consumes the economic benefits while the Group fulfills the
performance obligation;
- The client manages to control the goods in process while the Group fulfills the
performance obligation.- Goods produced during the performance period have irreplaceable purposes and the
Group is entitled to charge money for the performance accumulated and has been finished
until the current time within the whole contract period.For any performance obligations fulfilled in a certain period the Group will recognize
revenue within the certain period in accordance with the performance progress. If the
performance progress cannot be determined reasonably and costs incurred are expected to be
compensated of the Group the revenue will be ascertained according to the costs incurred
until the performance progress is determined reasonably.In terms of performance obligations fulfilled at a certain time point the Group will recognize
revenue when the client gains control right over the relevant goods or services. When it
comes to determining whether a client has acquired the control right over goods or services
the Group will consider the following conditions:
- The Group has the current right to receive payment for the goods or services;
- The Group has transferred the goods in kind to the client;
- The Group has transferred the legal ownership of the product or the main risks and
rewards of ownership to the client;
- 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). On each balance sheet date the Group re-estimates the
89Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
future sales returns. If there is any change it shall be treated as a change in accounting
estimates.The Group has transferred the goods or services to the client and thus has the right to receive
corresponding consideration (and the right is dependable on factors other than time lapses) as
contract asset which is subject to provision of impairment on the basis of expected credit
loss. The right enjoyed by the Group (only depends on time lapses) to receive consideration
unconditionally from the client shall be presented under account receivables. The Group
presents the obligation of transferring goods or services for the client due to the consideration
received or receivable as contract liabilities.The specific accounting policies related to the main activities of the Group's revenue are
described as follows:
The Group's sales revenue mainly comes from dealer sales. The revenue will be recognized
when the Group transfers control of the related products to the customer. According to the
business contract for these transfers the time when the product is confirmed and signed by
the customer shall be recognized as the confirming point of the sales revenue.
5.26 Contract cost
Contract cost includes incremental cost for being awarded the contract and performance cost
of the contract.Incremental cost for being awarded the contract refers to the cost that the Group would not
need to pay if no such contracts are awarded (e.g. sales commissions etc.) Where such cost is
expected to be recovered the Group shall take it as the contract acquisition cost and
recognize it as an asset. Expenses incurred by the Group to be awarded contract other than
incremental cost expected to be recovered shall be recognized in current profits and losses
when incurred.Any cost incurred by the Group for the performance of any contract that doesn't fall into the
scope of other businesses specified in the Standard such as inventory but meets the following
conditions simultaneously shall be taken as contract performance cost and recognized as an
asset.- Where such cost is directly related to a current or anticipated contract including direct
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
90Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
recognized for the contract acquisition cost does not exceed one year they shall be
recognized in current profits and losses.Where the book value of assets related to contract costs is higher than the difference between
the following two items the Group shall withdraw the impairment reserves of the excess part
and recognize it as the asset impairment loss:
- Residual consideration expected to be obtained arising from the transfer of goods or
services related to the assets by the Group;
- Cost estimated to be occurred for the transfer of the relevant goods or services.
5.27 Employee benefits
5.27.1 Short-term employee benefits
Employee wages or salaries bonuses social security contributions such as medical insurance
work injury insurance maternity insurance and housing fund measured at the amount
incurred or accrued at the applicable benchmarks and rates are recognized as a liability as the
employee provides services with a corresponding charge to profit or loss or included in the
cost of assets where appropriate.
5.27.2 Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People's Republic of China the Group
participated in a defined contribution basic pension insurance plan in the social insurance
system established and managed by government organizations. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks and rates
stipulated by the government. Basic pension insurance contributions payable are recognized
as a liability as the employee provides services with a corresponding charge to profit or loss
or included in the cost of assets where appropriate.
5.27.3 Dismission welfare
When the Group terminates the employment with employees before the employment
contracts expire or provides compensation under an offer to encourage employees to accept
voluntary redundancy a provision is recognized with a corresponding expense in profit or
loss at the earlier of the following dates:
- 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.
91Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
5.28 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the
government to the Group except for capital contributions from the government in the
capacity as an investor in the Group.A government grant is recognized when there is reasonable assurance that the grant will be
received and that the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset it is measured at fair value.Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets. A
government grant related to an asset is recognized as deferred income and amortized over the
useful life of the related asset on a reasonable and systematic manner as other income or
non-operating income. A grant that compensates the Company for expenses or losses to be
incurred in the future is recognized as deferred income and included in other income or
non-operating income in the periods in which the expenses or losses are recognized or
included in other income or non-operating income directly.
5.29 Income tax
Current tax and deferred tax are recognized in profit or loss except to the extent that they
relate to a business combination or items recognized directly in equity (including other
comprehensive income).Current tax is the expected tax payable calculated at the applicable tax rate on taxable income
for the year plus any adjustment to tax payable in respect of previous years.At the balance sheet date current tax assets and liabilities are offset only if the Group has a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realize the asset and settle the liability simultaneously.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases which include the deductible
losses and tax credits carried forward to subsequent periods. Deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilized.Deferred tax is not recognized for the temporary differences arising in a single transaction
that is not a business combination and affects neither accounting profit nor taxable profit (or
deductible loss) at the time of the transaction and the initially recognized assets and
92Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
liabilities do not result in equal taxable temporary differences or deductible temporary
differences. Deferred tax is not recognized for taxable temporary differences arising from the
initial recognition of goodwill.At the balance sheet date deferred tax is measured based on the tax consequences that would
follow from the expected manner of recovery or settlement of the carrying amounts of the
assets and liabilities using tax rates enacted at the balance sheet date that are expected to be
applied in the period when the asset is recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilized.Such reduction is reversed to the extent that it becomes probable that sufficient taxable
profits will be available.At the balance sheet date deferred tax assets and deferred tax liabilities are offset if all of the
following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current
tax assets;
- they relate to income taxes levied by the same tax authority on either: the same taxable
entity; or different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis or to realize the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax liabilities
or deferred tax assets are expected to be settled or recovered.
5.30 Lease
Lease refers to a contract in which it is agreed that the lessor conveys the use right of any
asset to the lessee for a period of time in exchange for consideration.On the contract start date the Group shall evaluate whether the contract is or contains a
lease. Where either party thereto conveys the right to control the use of one or more identified
assets for a period of time in exchange for consideration the contract is or contains a lease.To determine whether the contract conveys the right to control the use of identified assets for
a period of time the Group conducts the following assessments:
- Whether the contract involves the use of an identified asset. An identified asset can be
either explicitly specified in a contract or implicitly when the asset is available to the
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
93Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
period of use.If the contract contains multiple separate leases at the same time the lessee and lessor will
split the contract and have each separate lease separately subject to accounting treatment. If
the contract includes lease and non-lease parts at the same time the lessee and the lessor will
split them separately. When splitting the lease and non-lease parts included in the contract
the lessee shall allocate the contract consideration according to the relative proportion of the
sum of the stand-alone price of each lease part and the stand-alone price of each non-lease
part. The lessor shall allocate the contract consideration in accordance with the provisions on
transaction price allocation in the accounting policy stated in Note 5.22.
5.30.1 Where the Group is the lessee
Upon the commencement of the lease term the Group recognizes right-of-use assets and
lease liabilities for leases. The right-of-use assets are initially measured at cost including
initially measured amount of leased liability; amount of lease payments made on or before
the commencement date of the lease term (the related amount of lease incentive having been
enjoyed shall be deducted); initial direct costs incurred and costs that the Group expects to
incur to disassemble and remove leased assets restore the site where leased assets are located
or restore leased assets to the agreed condition under the terms of the lease. The Group
employs the straight-line method to depreciate right-of-use assets. Where it can be reasonably
recognized that the ownership of leased assets will be obtained by the Group upon expiration
of the lease term leased assets will be depreciated during the service life; otherwise leased
assets will be depreciated during the lease term or the remaining service life of such leased
assets by the Group whichever is shorter. Right-of-use assets shall be provided for
impairment in accordance with the accounting policies stated in Note 5.21.When initially calculating the present value of the unpaid lease payment at the
commencement date of the lease term the Group shall employ the interest rate implicit in the
lease as the discount rate; where the interest rate implicit in the lease cannot be determined
the incremental lending rate of the Group shall be used as the discount rate.The Group calculates the interest expense of lease liabilities in each period of the lease term
according to a fixed periodic rate which will be included in current profits and losses or asset
cost. The variable lease payment not included in the measurement of lease liabilities shall be
recognized in current profits and losses and loss or related asset cost when they actually
occur.In case of any of following circumstances after the commencement date of the lease term the
Group will re-measure lease liabilities at the present value of the lease payment after any
change:
- 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
94Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
assessment result.When the Group re-measures lease liabilities the book value of right-of-use assets shall be
adjusted accordingly. Where the book value of right-of-use assets has been reduced to zero
but lease liabilities still need to be subject to further reduction the remaining amount shall be
recognized in current profits and losses.The Group does not recognize right-of-use assets and leased liabilities for short-term lease
(lease with a lease term within 12 months) and lease of low-value assets. The Group shall
include related lease payment into the current profits and losses or relevant asset costs
according to the straight-line method in each period of the lease term.
5.30.2 The Group as the lessor
From the inception of lease the Group will divide leases into finance lease and operating
lease. Finance lease refers to a lease in which almost all the risks and returns related to the
ownership of the leased asset are essentially transferred regardless of whether the ownership
is finally transferred or not. Operating lease refers to other leases except for the finance lease.When the Group is the sublease lessor the sublease shall be classified based on the
right-of-use assets arising from the original lease rather than the underlying assets of the
original lease. If the original lease is a short-term lease and the Group elects to apply the
above-mentioned simplified treatment of short-term lease to the original lease the Group
shall classify the sublease as an operating lease.For finance leases from the commencement date of the lease term the Group recognizes
finance lease receivables for finance leases and derecognizes the finance lease assets. The
Group regards the net investment in a lease as the entry value of finance lease receivables at
the time of initial measurement of finance lease receivables. The net investment in a lease is
the sum of the present value of unguaranteed residual value and rental receipts not received
yet on the commencement date of the lease term which is subject to discounting at the
interest rate implicit in the lease term.The Group calculates and recognizes the interest income in each period within the lease term
according to a fixed periodic rate. Derecognition and impairment of finance lease receivables
shall be subject to accounting treatment in accordance with the accounting policies stated in
Note 5.10. The variable lease payment which is not included in the net investment in a lease
shall be recognized in current profits and losses when it actually occurs.During each period of the lease term the Group recognizes lease receipts from operating
leases as rental revenue by using the straight-line method. The Group capitalizes initial direct
costs pertaining to operating leases upon their occurrence and apportions them as per the
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.
95Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
5.31 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the carrying
amount of a non-current asset or disposal group will be recovered through a sale transaction
rather than through continuing use.A disposal group refers to a group of assets to be disposed of by sale or otherwise together
as a whole in a single transaction and liabilities directly associated with those assets that will
be transferred in the transaction.A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in similar
transactions the non-current asset or disposal group must be available for immediate sale in
their present condition subject to terms that are usual and customary for sales of such assets
or disposal groups;
- Its sale is highly probable that is the Group has made a resolution on a sale plan and has
obtained a firm purchase commitment. The sale is to be completed within one year.Non-current assets or disposal groups held for sale are stated at the lower of carrying amount
and fair value less costs to sell (except financial assets deferred tax assets and investment
properties subsequent measured at fair value initially and subsequently. Any excess of the
carrying amount over the fair value less costs to sell is recognized as an impairment loss in
profit or loss.
5.32 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan which will be
approved after the balance sheet date are not recognized as a liability at the balance sheet
date but are disclosed in the notes separately.
5.33 Related parties
If a party has the power to control jointly control or exercise significant influence over
another party or vice versa or where two or more parties are subject to common control or
joint control from another party they are considered to be related parties. Related parties may
be individuals or enterprises. Enterprises with which the Company is under common control
only from the State and that have no other related party relationships are not regarded as
related parties.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.
96Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
5.34 Segment reporting
The Group is principally engaged in the production and sales of wine brandy and sparkling
wine in China France Spain Chile and Australia. In accordance with the Group's internal
organization structure management requirements and internal reporting system the Group's
operation is divided into five parts: China Spain France Chile and Australia. The
management periodically evaluates segment results in order to allocate resources and
evaluate performances. In 2026 over 83% of revenue more than 112% of profit and over
90% of non-current assets derived from China / are located in China. Therefore the Group
does not need to disclose additional segment report information.
5.35 Significant accounting estimates and judgments
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets liabilities income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and in any future periods affected.For significant accounting estimates of this Company see Notes 5.3 7 11 and 16.
5.36 Changes in significant accounting policies and accounting estimates
5.36.1 Changes in significant accounting policies
Nil
5.36.2 Changes in significant accounting estimates
Nil
6. Taxes
6.1 Main taxes and tax rates
Tax category Taxation basis Tax rates
Levied on the balance between the output tax 13% 9% 6% (China) 20% (France)
Value added tax calculated based on taxable income and the input 21% (Spain) 19% (Chile) 10%
tax allowed to be deducted in current period. (Australia)
Consumption tax Levied on taxable income. 10% of the price 20% of the price and1000 yuan each ton (China)
City development
tax Levied on circulation tax actually paid. 7% (China)
Corporate income
tax Levied on taxable income.
25% (China) 25% (France) 28%
(Spain) 27% (Chile) 30% (Australia)
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6.2 Tax incentives
Ningxia Changyu Grape Growing Co. Ltd.“( Ningxia Growing”) a subsidiary of the Group
engaged in grape growing is incorporated in Yongning County Ningxia Huizu Autonomous
Region. According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC
Corporate Income Tax Measures for Implementation Ningxia Growing enjoys the
preferential policy of an exemption of corporate income tax from grape cultivation income.Yantai Changyu Grape Growing Co. Ltd. (“Grape Growing”) a branch of the Company
engaged in grape growing is incorporated in Zhifu District Yantai City Shandong Province.According to clause 27 of PRC Corporate Income Tax and clause 86 of PRC Corporate
Income Tax Measures for Implementation Grape Growing enjoys the preferential policy of
an exemption of corporate income tax from grape cultivation income.Grape Planting Branch of Yantai Changyu Wine R&D and Manufacturing Co. Ltd. (“R&Dand Growing” ) a branch of the Company engaged in grape growing is incorporated in
YEDA Shandong Province. According to Clause 27 of PRC Corporate Income Tax and
Clause 86 of PRC Corporate Income Tax Measures for Implementation R&D and Growing
enjoys the preferential policy of an exemption of corporate income tax from grape cultivation
income.Beijing Changyu AFIPAgriculture Development Co. Ltd. (“Agriculture Development”) a
subsidiary of the Group engaged in grape growing is incorporated in Miyun County Beijing.According to clause 27 of the Corporate Income Tax Law of the People's Republic of China
and clause 86 of the Implementation Rules of Enterprise Income Tax Law of the People's
Republic of China Agriculture Development enjoys the preferential policy of an exemption
of corporate income tax from grape cultivation income.Xinjiang Baron Balboa Chateau Co. Ltd.“( Shihezi Chateau”) a subsidiary of the Company
is an enterprise of bulk grape wine production and sale and finished bottled grape wine sale
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 Estate Co. Ltd. (referred to as “Ningxia Chateau”) a
subsidiary of the Company is an enterprise of finished bottled grape wine production and
sale 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.
98Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Changyu (Ningxia) Wine Co. Ltd. (“Ningxia Wine”) a subsidiary of the Company is an
enterprise of bulk grape wine production and sale 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 Enterprise Income Tax Law of the People's Republic of China and its
Implementing Regulations and Announcement of the Ministry of Finance and the State
Taxation Administration on the Tax Policies for Further Supporting the Development of
Micro and Small Enterprises and Individual Industrial and Commercial Households
(Announcement No. 12 of [2023] of the Ministry of Finance and the State Taxation
Administration) for micro and small enterprises that meet the applicable conditions the
taxable income for the year shall be calculated at a reduced rate of 25% of the annual taxable
income and the enterprise income tax shall be paid at the applicable tax rate of 20%. Beijing
Changyu Wine Industry Marketing Co. Ltd.“( Beijing Allotting”) a subsidiary of the Group
has been identified as eligible small low-profit enterprise.According to the provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on Exempting Small-Scale Value-Added Tax Taxpayers from
Value-Added Tax (Announcement No. 19 of [2023] of the Ministry of Finance and the State
Taxation Administration) from January 1 2024 to December 31 2027 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
enjoys this preferential tax 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 the Tax Policies for Further Supporting the Development of Micro and
Small Enterprises and Individual Industrial and Commercial Households (Announcement No.
12 [2023]) from January 1 2023 to December 31 2027 the following taxes and surcharges
are subject to a 50% reduction for small-scale VAT taxpayers small low-profit enterprises
and individual industrial and commercial households: resource tax (excluding water resource
tax) urban maintenance and construction tax property tax urban land use tax stamp duty
(excluding stamp duty on securities transactions) cultivated land occupation tax as well as
education surcharge and local education surcharge. Some of the Company's subsidiaries are
eligible for the reduction.
99Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7. Notes to items in the consolidated financial statement
7.1 Monetary capital
Unit: yuan
Item Ending Balance Beginning Balance
Cash on hand 4468 18877
Bank deposit 2063172936 1884759212
Other monetary capital 20040897 5833715
Total 2083218301 1890611804
Including: Total overseas deposits 53522383 70392228
As on June 30 2026 the bank deposits of the Group including short-term fixed deposits ranging
from 3 months to 12 months amounted to RMB 60650000 yuan with the interest rates ranging
from 1.15% to 1.85% (December 31 2025: RMB 45650000 yuan).As at June 30 2026 the details of other monetary funds are listed as follows:
Unit: yuan
Item Ending Balance Beginning Balance
Deposit investment funds for stock repurchase 15126345
Account balance of Alipay 904552 1723715
Guaranty money for bank platform 4010000 4110000
Total 20040897 5833715
As on June 30 2026 the Group does not have any special interest arrangements such as
establishing joint fund management accounts with related parties.
7.2 Bills receivable
Classification of bills receivable
Item Ending Balance Beginning Balance
Bank acceptance bills 100000 102342
Total 100000 102342
The above bills receivable are all due within one year.
7.3 Accounts receivable
7.3.1 Disclosed by age:
Unit: yuan
Age Ending book balance Beginning book balance
Within 1 year (including 1 year) 167506271 269602415
1-2 years 1797210 390478
100Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
2-3 years 237064 656993
Over 3 years 2323159 2227844
Total 171863704 272877730
As on June 30 2026 the accounts receivable with ownership restrictions were RMB 76263655
yuan (December 31 2025: 73330179 yuan). Please refer to Note 7.20 for details.
7.3.2 Accounts receivable are analyzed by customer category as follows:
Unit: yuan
Ending Balance
Name
Book balance Provision for bad debts Accrued proportion
Receivable from related
parties 506000 1316 0.26%
Other customers 171357704 8289862 4.84%
Total 171863704 8291178 --
7.3.3 Disclosed by provision for bad debts:
Unit: yuan
Ending Balance Beginning Balance
Book balance Provision for bad Book balance Provision for badType debts Book debts Book
Accrued value Accrued valueAmount Proportion Amount proportion Amount Proportion Amount proportion
Accounts
receivable for
which
provision for
bad debts is
accrued on a
single item
basis
Accounts
receivable for
which
provision for 171863704 100% 8291178 4.8% 163572526 272877730 100% 7945006 2.9% 264932724
bad debts is
accrued on a
combined basis
Total 171863704 100% 8291178 4.8% 163572526 272877730 100% 7945006 2.9% 264932724
7.3.4 Provision for bad debts accrued withdrawn or transferred back in this period
Provision for bad debts accrued in this period:
Unit: yuan
Changes in this period
Beginning
Type Withdrawn or Ending BalanceBalance Accrual Cancelled Others
transferred back
Provision for 7945006 346172 8291178
101Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
bad debts is
accrued on a
combined basis
Total 7945006 346172 8291178
7.3.5 Accounts receivable actually cancelled after verification in this period
Nil
7.3.6 Accounts receivable and contract assets situation collected by borrowers of top 5 units
ranked by ending balance
Unit: yuan
Ending balance of
Percentage in total
Ending balance of bad debts
Ending balance Ending ending balance of
accounts provision and
Unit Name of accounts balance of accounts
receivable and provision for
receivable contract assets receivable and
contract assets impairment of
contract assets
contract assets
THE CO-OP FOOD
GROUP 8729677 8729677 5.1% 30646
ALLIANCE WINE CO
LTD 7999471 7999471 4.7% 1131056
Beijing JD Century
Information Technology 6602173 6602173 3.8% 17175
Co. Ltd.Kingsland Wines and
Spirits 4152808 4152808 2.4% 70516
SLIGRO B.V. 3584148 3584148 2.1% 249452
Total 31068277 31068277 18.10% 1498845
7.3.7 Accounts receivable terminating recognition due to transfer of financial assets
Nil
7.3.8 Accounts receivable transferred and included in assets and liabilities
Nil
7.4 Receivables financing
Unit: yuan
Item Ending Balance Beginning Balance
Bills receivable 222487233 228073841
Total 222487233 228073841
102Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.4.1 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
Type Amount derecognized at end of period
Bank acceptance bills 99609132
Total 99609132
As on June 30 2026 bills endorsed by the Group to other parties which are not yet due is RMB
99609132 yuan (December 31 2025: RMB 418066114 yuan). The notes are used for payment
to suppliers and constructions. The Group believes that due to good reputation of bank the risk of
notes not accepting by bank on maturity is very low therefore derecognize the note receivables
endorsed. If the bank is unable to pay the notes on maturity according to the relevant laws and
regulations of China the Group would undertake limited liability for the notes.
7.5 Advance payment
7.5.1 Advance payment listed by age
Unit: yuan
Ending Balance Beginning Balance
Age
Amount Proportion Amount Proportion
Within 1 year 14483906 99.84% 52950895 98%
1-2 years 9841 0.07%
2-3 years 13033 0.09% 1060914 2%
Over 3 years
Total 14506780 -- 54011809 --
7.5.2 Advance payment collected by prepaid parties of top 5 units ranked by ending balance
Unit: yuan
Relationship Percentage in
Client type with the Amount Age Reason for the total
Group unsettlement advancepayment %
Xinjiang Muyun Yafeng Prepaid
Wine Co. Ltd. Third party 6867700 Within 1 year payment for 47.3%
goods
Qingdao International Airport Prepaid
Group Co. Ltd. Third party 2459489 Within 1 year payment for 17.0%
rent
Xinjiang Yuyuan Wine Co. Prepaid
Ltd. Third party 985322 Within 1 year payment for 6.8%
goods
Shandong Jinzhou Health Prepaid
Industry Co. Ltd. Third party 758960 Within 1 year payment for 5.2%
goods
103Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Relationship Percentage in
Client type with the Amount Age Reason for the total
Group unsettlement advancepayment %
Shandong JD Kuaixing Prepaid
Supply Chain Technology Third party 681785 Within 1 year payment for 4.7%
Co. Ltd. freight
Total -- 11753256 -- 81%
7.6 Other receivables
Unit: yuan
Item Ending Balance Beginning Balance
Interests receivable
Dividends receivable
Other receivables 113246526 127713309
Total 113246526 127713309
Other receivables
7.6.1 Other receivables classified by nature
Unit: yuan
Nature Ending book balance Beginning book balance
Compensation receivable from the disposal 72666088 81666088
of vineyards
Land acquisition and storage receivable 31768902 31768902
Consumption tax and added-value tax 19410854 18993601
export rebate
Deposit and guaranty money receivable 5515747 5868084
Housing maintenance fund 2703605 2703605
Imprest receivable 59938 45182
Others 2684007 9239177
Total 134809141 150284639
7.6.2 Disclosed by age
Unit: yuan
Age Ending Balance Beginning Balance
Within 1 year (including 1 year) 21345621 32124454
1-2 years 75849325 84888095
2-3 years 4324414 527140
Over 3 years 33289781 32744950
Total 134809141 150284639
7.6.3 Provision for bad debts accrued withdrawn or transferred back in this period
104Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Changes in this period
Beginning
Type Withdrawn or Ending Balance
Balance Write-off orAccrual transferred Others
transfer back
back
Accrual 22571330 -1008715 21562615
Total 22571330 -1008715 21562615
The provision for bad debts accrued in this period was RMB -1008715 yuan; and that withdrawn
or transferred back in this period was RMB 0 yuan.
7.6.4 Other receivables actually cancelled after verification in this period
Nil
7.6.5 Other receivables collected by borrowers of top 5 units ranked by ending balance
Unit: yuan
Percentage in total Ending
Unit Name Nature Ending Balance Age ending balance of balance ofother accounts provision for
receivable bad debts
Laizhou Zhuqiao Town
People's Government Compensation receivable
7266608853.9%7266609
Laizhou Yidao Town People's from the disposal of 1-2 years
Government vineyards
YEDA Natural Resources and Land acquisition and
Planning Bureau 31768902 Over 3 years 23.6% 14296006reserve funds
Value-added tax and
Servicio de Impuestos
Internos consumption tax export 18201339 Within 1 year 13.5%
rebate
Yantai Municipal Finance
Bureau Housing maintenance fund 2703605 2-3 years 2.0%
Shanghai Ruihong New Town Within 1 year
Co. Ltd. Deposit 629071 0.5%2-3 years
Total -- 125969005 93.5% 21562615
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
105Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.7 Inventories
7.7.1 Inventory classification
Unit: yuan
Ending Balance Beginning Balance
Item
Book balance Depreciationprovision Book value Book balance
Depreciation
provision Book value
Raw materials 121010599 121010599 277656519 277656519
Goods in process 2123027358 2123027358 1876067662 1876067662
Commodity
stocks 563641608 13978824 549662784 699103803 16750775 682353028
Total 2807679565 13978824 2793700741 2852827984 16750775 2836077209
7.7.2 Inventory depreciation provision
Unit: yuan
Increase in this period Decrease in this period
Item BeginningBalance Accrual Others Transfer back or
Ending Balance
write-off Others
Raw materials
Goods in process
Commodity
stocks 16750775 13978824 16750775 13978824
Total 16750775 13978824 16750775 13978824
7.8 Other current assets
Unit: yuan
Item Ending Balance Beginning Balance
Accounts receivable return cost 26452 7166025
Prepaid corporate income tax 17264190 3745396
Deductible input tax 47227375 61109041
Expense to be amortized 2204505 2140474
Total 66722522 74160936
7.9 Long-term equity investments
Unit: yuan
Movements during the period
Investment
Beginning Beginning Endingbalance of gains and Endingbalance Other Declare Accrual balance balance ofInvestee Increase losses Other(book provision in Decrease
provision
for in capita recognized
comprehensive
income equity
cash provision Others (book
value) forimpairment capital under the adjustment changing
dividend for value)
or profit impairment impairmentequity
method
1. Joint ventures
106Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
SAS L&M
Holdings( L&M 24933742 6233435 -3261023 21672719 6233435“Holdings”)
Subtotal 24933742 6233435 -3261023 21672719 6233435
2. Associates
Shanghai
Yufeng Brand
Management
Co. Ltd. 394840 75 394915( “ ShanghaiYufeng ” )
(Note 1)
Yantai
Guolong
Wine
Industry Co. 757369 -30841 726528Ltd. (“YantaiGuolong ” )
(Note 1)
Taizhou
Changyu
Chateau Wine 570246 -7309 562937
Sales Co.Ltd. (Note 2)
Subtotal 1722455 -38075 1684380
Total 26656197 6233435 -3299098 23357099 6233435
Note 1: The Group has appointed one director to each of these investees.Note 2: The Group has appointed two directors to each of these investees.
7.10 Investment real estate
7.10.1 Investment real estate by cost measurement method
Unit: yuan
Houses and Construction in
Item buildings Land use right progress Total
I Original book value
1. Beginning balance 81165619 81165619
2. Increase in this period
2.1 Outsourcing
2.2 Transfer in from inventories\ fixed
assets\ construction in progress
2.3 Business merger increase
107Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Houses and Land use right Construction inItem buildings progress Total
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 81165619 81165619
II. Accumulated depreciation &
accumulated amortization
1. Beginning balance 61265391 61265391
2. Increase in this period 1126694 1126694
2.1 Accrual or amortization 1126694 1126694
3. Decrease in this period
3.1 Disposal
3.2 Other transfer out
4. Ending balance 62392085 62392085
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 18773534 18773534
2. Beginning book value 19900228 19900228
7.11 Fixed assets
Unit: yuan
Item Ending Balance Beginning Balance
108Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Ending Balance Beginning Balance
Fixed assets 5183660371 5308778632
Disposal of fixed assets
Total 5183660371 5308778632
7.11.1 Particulars of fixed assets
Unit: yuan
Item Houses and buildings Machinery equipment Transportationequipment Total
I. Original book value:
1. Beginning balance 5851951837 2905997841 23223202 8781172880
2. Increase in this
period 6395729 17241719 299556 23937004
2.1 Acquisition 6321783 16844689 299556 23466028
2.2 Transfer in from
construction in progress 73946 397030 470976
2.3 Business merger
increase
3. Decrease in this
period 9671569 9671569
3.1 Disposal or
retirement 9671569 9671569
3.2 Others
4. Ending balance 5858347566 2913567991 23522758 8795438315
II. Accumulated
depreciation
1. Beginning balance 1595309195 1845208019 21513651 3462030865
2. Increase in this
period 76134754 71041105 647089 147822948
2.1 Accrual 76134754 71041105 647089 147822948
3. Decrease in this
period 8439252 8439252
3.1 Disposal or
retirement 8439252 8439252
3.2 Others
4. Ending balance 1671443949 1907809872 22160740 3601414561
III. Impairment provision
1. Beginning balance 10363383 10363383
2. Increase in this
period
2.1 Accrual
3. Decrease in this
period
3.1 Disposal or
retirement
3.2 Others
4. Ending balance 10363383 10363383
IV. Book value
1. Ending book value 4186903617 995394736 1362018 5183660371
109Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Houses and buildings Machinery equipment Transportationequipment Total
2. Beginning book
value 4256642642 1050426439 1709551 5308778632
As on June 30 2026 the net value of the fixed assets with ownership restrictions was RMB
31797005 yuan (December 31 2025: RMB 34165994 yuan). Please refer to Note 7.20 for
details.
7.11.2 Particulars of temporarily idle fixed assets
Unit: yuan
Item Original book Accumulated Depreciationvalue depreciation reserves Book value Remarks
Machinery equipment 29423698 19060315 10363383
Total 29423698 19060315 10363383
7.11.3 Particulars of fixed assets under finance leases
Nil
7.11.4 Fixed assets under operating lease
Unit: yuan
Item Ending book value
Building 82179569
Machinery equipment 931
7.11.5 Particulars of fixed assets without property certificates
Unit: yuan
Item Book value Reason for not receiving the propertycertificate
Dormitory building main building and
reception building of Longue Chanson 240300463 Under transaction
Chateau
European town main building and service 144392704 Under transaction
building of Chateau AFIP
Changyu (Ningxia) winemaking 758070 Under transaction
fermentation workshop and warehouse
Office building laboratory building and 3231763 Under transaction
workshop of Fermentation Center
Wine-making workshop of Changyu 3288807 Under transaction
(Jingyang)
Finished goods warehouse and workshop 1716764 Under transaction
of Kylin Packaging
Others 699039 Under transaction
110Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Total 394387610
7.12 Construction in progress
Unit: yuan
Item Ending Balance Beginning Balance
Construction in progress 6350167 4313088
Engineering materials
Total 6350167 4313088
7.12.1 Particulars of construction in progress
Unit: yuan
Ending Balance Beginning Balance
Item
Book balance Depreciationreserves Book value Book balance
Depreciation
reserves Book value
Renovation of Longue 3618259 3618259 2844037 2844037
Chanson Chateau
Renovation of the
courtyard of Changyu 827934 827934 702063 702063
Museum
Projects of other 1903974 1903974 766988 766988
companies
Total 6350167 6350167 4313088 4313088
111Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.12.2 Changes of major construction in progress in this period
Unit: yuan
Transferred Transferredto long-term Proportion of Accumulative
Including:
Project name Budget Beginning Increase in to fixed unamortized Ending accumulative capitalized
capitalized Capitalization
Balance this period assets in this expenses in Balance project input in amount of
amount of ratio of interest in Capital source
period budget interest interest in this periodthis period this period
Renovation of
Longue 4000000 2844037 774222.36 3618259.36 90% Self-raised funds
Chanson
Chateau
Renovation of
the courtyard 3000000 702063 1654440.73 1528569.96 827933.77 78% Self-raised funds
of Changyu
Museum
As on June 30 2026 there was no indication for impairment of construction in progress of the Group so no provision for impairment was
made.
112Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
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 17570417 105757732 123328149
2. Increase in this period -254023 561450 307427
2.1 Outsourcing
2.2 Self cultivation 303427 4000 307427
The immature turn to the mature -557450 557450
3. Decrease in this period
3.1 Disposal
3.2 Others
4. Ending balance 17316394 106319182 123635576
Ⅱ Accumulated depreciation
1. Beginning balance 63229435 63229435
2. Increase in this period 3324538 3324538
2.1 Accrual 3324538 3324538
3. Decrease in this period
3.1 Disposal
3.2 Other
4. Ending balance 66553973 66553973
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 17316394 39765209 57081603
2. Beginning book value 17570417 42528297 60098714
As on June 30 2026 no ownership of the biological assets was restricted.As on June 30 2026 there was no indication for impairment of biological assets of the Group so
113Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
no provision was made.
7.14 Right-of-use assets
Unit: yuan
Item Building Land Total
Ⅰ Original book value:
1. Beginning balance 42827860 84681091 127508951
2. Increase in this period 42394834 42394834
3. Decrease in this period 7128674 7128674
4. Ending balance 78094020 84681091 162775111
Ⅱ Accumulated amortization
1. Beginning balance 31718782 40537660 72256442
2. Increase in this period 8086745 1312220 9398965
2.1 Accrual 8086745 1312220 9398965
3. Decrease in this period 7128674 7128674
4. Ending balance 32676853 41849880 74526733
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 45417167 42831211 88248378
2. Beginning book value 11109078 44143431 55252509
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 444981404 106925336 191673055 743579795
114Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Land use right Software use right Trademark Total
2. Increase in this period 360102 304512 664614
2.1 Acquisition 360102 304512 664614
2.2 Internal R&D
2.3 Business merger
increase
3. Decrease in this period 957690 957690
3.1 Disposal 957690 957690
3.2 Others
4. Ending balance 444981404 106327748 191977567 743286719
Ⅱ Accumulated amortization
1. Beginning balance 121892870 89560579 19195709 230649158
2. Increase in this period 4440797 3627655 249887 8318339
2.1 Accrual 4440797 3627655 249887 8318339
3. Decrease in this period 943613 943613
3.1 Disposal 943613 943613
3.2 Others
4. Ending balance 126333667 92244621 19445596 238023884
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 318647737 14083127 172531971 505262835
2. Beginning book value 323088534 17364757 172477346 512930637
As on June 30 2026 no ownership of the intangible assets was restricted.
7.15.2 Particulars of land use right of that not receiving the property certificate
Nil
115Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.16 Goodwill
7.16.1 Original book value of goodwill
Unit: yuan
Decrease in this
Increase in this period
period
Name of the invested unit or matter forming Beginning
Formed by Ending Balancegoodwill Balance
business Others Disposal Others
merger
Atrio Group 92391901 92391901
Indomita Wine Company Chile SpA 6870115 6870115
Kilikanoon Estate Australia 37063130 37063130
Total 136325146 136325146
7.16.2 Provision for impairment of goodwill
Unit: yuan
Decrease in this
Name of the invested unit or matter forming Beginning Increase in this period period Ending Balance
goodwill Balance
Accrual Others Disposal Others
Atrio Group 11225459 11225459
Kilikanoon Estate Australia 37063130 37063130
Total 48288589 48288589
7.17 Long-term unamortized expenses
Unit: yuan
Increase in this Amortization in this
Item Beginning Balance Other decreases Ending Balance
period period
Land acquisition
4037297379981339573160
fees
Afforestation fees 93231556 4211467 89020089
Renovation costs 145524347 2239998 5837785 141926560
Others 4098180 1455024 253839 5299365
Total 283227056 3695022 11102904 275819174
116Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.18 Deferred income tax assets/liabilities
7.18.1 Un-offset deferred income tax assets
Unit: yuan
Ending Balance Beginning Balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Asset impairment 54196000 13680720 57630494 14539423
provision
Unrealized profits from
inter-company 285073741 71268435 416323375 104080844
transactions
Deductible loss 256753084 62887496 250789836 61117483
Unpaid bonus 104455919 26113980 120048950 30012237
Dismission welfare 4105978 1026494 5316990 1329247
Deferred income 15793091 3344574 19386932 4151683
Influence of leasing 2146934 518850 1798945 449737
standards
Total 722524747 178840549 871295522 215680654
7.18.2 Un-offset deferred income tax liabilities
Unit: yuan
Ending Balance Beginning Balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Assets appraisal
appreciation in business
211301816114456222360516435261
combination under
non-common control
Influence of leasing
3339918182502714534178633
standards
Total 24470099 6296958 22950585 6613894
7.18.3 Details of unconfirmed deferred income tax assets
Unit: yuan
Item Ending Balance Beginning Balance
Deductible temporary difference
117Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Deductible loss 613512549 546736496
Total 613512549 546736496
7.18.4 Deductible losses of unconfirmed deferred income tax assets will expire in
Unit: yuan
Year Ending sum Beginning sum Remarks
20264122268845528669
2027123557586123557586
2028114766551114766551
2029106434373106434373
2030156449317156449317
203171082034
Total 613512549 546736496 --
7.19 Other non-current assets
Unit: yuan
Ending Balance Beginning Balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Advance
payment for 43735 43735 43735 43735
construction
Total 43735 43735 43735 43735
7.20 Assets with restricted ownership or use rights
Unit: yuan
Ending Beginning
Item Restriction Restriction Book Restriction Restriction
Book balance Book value Book value
type state balance type state
Security Security
Monetary 4010000 4010000 Pledge deposit 4110000 4110000 Pledge deposit
capital
etc. etc.Fixed 46653467 31797005 Mortgage MortgageMortgage 46653467 34165994 Mortgage
assets loan loan
Accounts 76263655 76263655 FactoringPledge 73330179 73330179
Factoring
Pledge
receivable restricted restricted
Total 126927122 112070660 124093646 111606173
118Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.21 Short-term loans
7.21.1 Classification of short-term loans
Unit: yuan
Item Ending Balance Beginning Balance
Mortgage loan 164805355 158792031
Guaranteed loan 8283492 13364220
Fiduciary loan 71263217 68518537
Total 244352064 240674788
*As on June 30 2026 EUR mortgage loan was EUR 9818807 (equivalent of RMB 76263655
yuan) (December 31 2025: EUR 8904156 equivalent of RMB 73330179 yuan) of accounts
receivable factoring business handled by Hacienday Vinedos Marques del Atrio S.L.U. (“Atrio”)
with banks including Banco Santander BBVA and Bankinter;
*As on June 30 2026 USD loan was USD 13000000 (equivalent of RMB 88541700 yuan)
(December 31 2025: USD 12125000 equivalent of RMB 85461852 yuan) of loans borrowed by
Chile Indomita Wine Group from Banco Scotiabank and Banco de Chile with the fixed assets as
collateral.*As on June 30 2026 AUD guaranteed loan was AUD 1770000 (equivalent of RMB 8283492
yuan) (December 31 2025: AUD 2850000 equivalent of RMB 13364220 yuan) borrowed by
Australia Kilikanoon Estate.
7.22 Accounts payable
7.22.1 List of accounts payable
Unit: yuan
Item Ending Balance Beginning Balance
Accounts payable for materials etc. 313132902 321932168
Total 313132902 321932168
7.22.2 No significant accounts payable aged more than one year in this year
7.23 Contract liabilities
Unit: yuan
Item Ending Balance Beginning Balance
Advances from customers 115718391 134708926
Withholding of goods with sales rebate 358537
119Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Total 115718391 135067463
7.24 Employee remunerations payable
7.24.1 List of employee remunerations payable
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
1. Short-term remuneration 156887202 158124714 190376747 124635169
2. Post-employment welfare –
32142526147832264656773580
defined contribution plan
3. Dismission welfare 5316990 2885606 4096618 4105978
4.Other welfare due within one
year
Total 162525617 187158152 220939042 128744727
7.24.2 List of short-term remunerations
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
1. Salaries bonuses allowances
153929499133790786166055306121664979
and subsidies
2. Staff welfare 1285556 9909437 9637250 1557743
3. Social insurance charges 198503 6686327 6874646 10184
Including: Medical insurance 198433 6200606 6388895 10144
Injury insurance 70 484395 484425 40
Maternity
13261326
insurance
4. Housing fund 42781 6475207 6514198 3790
5. Union fee and staff education
1430863126295712953471398473
fee
6. Short-term compensated
absences
7. Short-term profit-sharing plan
Minus: Those divided into
non-current liabilities
Total 156887202 158124714 190376747 124635169
120Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.24.3 List of defined contribution plan
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
1. Basic endowment
32001525604917259214643468
insurance
2. Unemployment
1410542915544213112
insurance
3. Enterprise annuity
payment
Total 321425 26147832 26465677 3580
7.24.4 Dismission welfare
Unit: yuan
Increase in Decrease in this
Item Beginning Balance Ending Balance
this period period
1. Compensation for server of labor
relation
2. Compensation for early retirement 5316990 2885606 4096618 4105978
Total 5316990 2885606 4096618 4105978
7.25 Taxes and dues payable
Unit: yuan
Item Ending Balance Beginning Balance
Value added tax 19712909 27831972
Consumption tax 17060369 42140635
Corporate income tax 77102948 69531572
Individual income tax 2173786 786256
City development tax 2191839 4495333
Education surcharges 1589313 3221254
Urban land use tax 2247092 2302126
Others 7906498 8249786
Total 129984754 158558934
7.26 Other payables
Unit: yuan
121Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Ending Balance Beginning Balance
Interest payable
Dividends payable 388355
Other payable 310626635 332855775
Total 311014990 332855775
7.26.1 Dividends payable
Unit: yuan
Item Ending Balance Beginning Balance
Ordinary stock dividends
Preferred stock dividends/sustainable debt
dividends divided into equity instruments
Others 388355
Total 388355
7.26.2 Other payables
7.26.2.1 Other payables listed by nature
Unit: yuan
Item Ending Balance Beginning Balance
Dealer's deposit payable 151174880 156861946
Equipment purchase and construction costs 11211226 11523560
payable
Transportation charges payable 5384865 18179784
Trademark use fee payable 9139135 17082233
Advertisement expenses payable 41910743 43523608
Employee cash deposit 309282 1480476
Supplier's deposit payable 15129135 16393705
Contracting fees payable 8347970 3942153
Repurchase of treasury stock funds 37880941 37880941
payable
Others 30138458 25987369
Total 310626635 332855775
7.26.2.2 Explanation of large accounts payable aged more than one year
As on June 30 2026 there were no other large accounts payable aged more than one year.
122Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.27 Non-current liabilities due within one year
Unit: yuan
Item Ending Balance Beginning Balance
Long-term loans due within one year 68225594 65453059
Bonds payable due within one year
Long-term accounts payable due within
one year
Lease liabilities due within one year 13770516 9987851
Total 81996110 75440910
7.28 Other current liabilities
Item Ending Balance Beginning Balance
Refund payable 34564 7613210
Unamortized VAT amount 15043391 19580652
Total 15077955 27193862
7.29 Long-term loans
7.29.1 Classification of long-term loans
Unit: yuan
Item Ending Balance Beginning Balance
Fiduciary loan 112853706 117827899
Minus: Long-term loans due within one
6822559465453059
year
Total 44628112 52374840
As on June 30 2026 fiduciary loans (EUR) were EUR 14529709 (equivalent of RMB
112853706 yuan) (December 31 2025: EUR 14307316 equivalent of RMB 117827899 yuan)
borrowed by Atrio from banks including Banco Santander BBVA Caja Rural de Navarr and Caixa
Bank.
7.30 Lease Liabilities
Unit: yuan
Item Ending Balance Beginning Balance
Long-term lease liabilities 61158186 29425681
123Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Minus: Lease liabilities due within one 13770516 9987851
year
Total 47387670 19437830
7.31 Deferred income
Unit: yuan
Increase in this Decrease in this
Item Beginning Balance Ending Balance Forming reason
period period
Governmental 19386932 3593841 15793091
subsidy
Total 19386932 3593841 15793091
Projects related to governmental subsidy:
Unit: yuan
Amount of Amount
Amount
subsidy included in Amount
Beginning offset the Other
Item of liabilities newly non-operating included in Ending balance
balance cost changes
increased in revenue in this other income
expenses
this period period
Industrial development
4100000 2050000 2050000 Related to assets
supporting funds
Subsidy for retaining wall 8402190 622571 7779619 Related to assets
Xinjiang industrial revitalization
and technological 5688000 711000 4977000 Related to assets
transformation project
Special funds for efficient
505000 81000 424000 Related to assets
water-saving irrigation project
Subsidy for economic and
energy-saving technological 128300 64150 64150 Related to assets
transformation projects
Subsidy for scenic spot
151454 51920 99534 Related to assets
construction
Improvement of public service
234633 13200 221433 Related to assets
facilities in scenic spot
Subsidy for research and
industrialization of domestic oak 177355 177355 Related to income
aging technology
Total 19386932 3593841 15793091
124Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.32 Share capital
Unit: yuan
Increase or decrease (+-) in this period
Share
Item Beginning Balance Newly transferredAllocated Ending Balance
issued from Others Subtotal
shares
shares accumulation
fund
Total shares 657240128 657240128
7.33 Capital reserves
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
Capital premium (share capital
333437678333437678
premium)
Other capital reserves 30610824 30610824
Total 364048502 364048502
7.34 Treasury share
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
Repurchase of
3487365534873655
B-shares
Repurchase of
3788094137880941
restricted stock
Total 37880941 34873655 72754596
*The fifth meeting of the tenth session of the Board of Directors was held on April 16 2026 and
the 2025 Annual General Meeting of Shareholders was held on May 22 2026. The Plan for
Repurchasing Shares of Part of Domestic Listed Foreign Shares (B-shares) of the Company was
reviewed and approved. According to the above-mentioned B-share repurchase plan the Company
will implement the repurchase of domestic listed foreign shares (B-shares) through centralized
bidding trading taking into account its own financial and operating conditions with a total
repurchase capital of RMB 67.4 million – 100 million yuan and a repurchase price not exceeding
HKD 11.49 per share. The repurchase period shall not exceed 12 months from the date of approval
of share repurchase plan by the shareholders' meeting. The number of shares to be repurchased shall
not be less than 10 million shares and shall not exceed 15 million shares. The repurchased shares
shall be cancelled and the registered capital of the Company shall be correspondingly reduced.
125Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
As of June 30 2026 the Company has repurchased a total of 4830000 domestic listed foreign
shares (B-shares) through centralized bidding method via a special securities account for share
repurchase accounting for 0.7349% of the Company's current total share capital. The total
transaction amount was equivalent to RMB 34873655 yuan.
7.35 Other comprehensive income
Unit: yuan
Amount incurred in this period
Minus:
amount
Minus: amount
included in
Amount included in other
other Minus: Attributable Attributable
Beginning incurred comprehensive Ending
Item comprehensive income to parent to minority
Balance before income before Balance
income before tax company shareholders
income tax in and transferred to
and transferred expenses after tax after tax
this period profit or loss in
to retained
this period
earnings in
this period
1. Other comprehensive
income not to be reclassified
into profit and loss later
Including: Changes after
re-measuring and resetting
the benefit plans
Other comprehensive
income not to be reclassified
into profit and loss under
equity method
Changes in the fair
value of other investments in
equity instruments
Changes in the fair
value of the enterprise's own
credit risk
2. Other comprehensive
income to be reclassified into -16329710 -13172537 -11755124 -1417413 -28084834
profit and loss later
Including: Other
comprehensive income to be
reclassified into profit and
loss under equity method
126Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Amount incurred in this period
Minus:
amount
Minus: amount
included in
Amount included in other
other Minus: Attributable Attributable
Beginning incurred comprehensive Ending
Item comprehensive income to parent to minority
Balance before income before Balance
income before tax company shareholders
income tax in and transferred to
and transferred expenses after tax after tax
this period profit or loss in
to retained
this period
earnings in
this period
Changes in the fair
value of other debt
investments
Amount of financial
assets reclassified into other
comprehensive income
Provision for credit
impairment of other credit
investments
Provision for cash-flow
hedge
Difference in translation
of Foreign Currency -16329710 -13172537 -11755124 -1417413 -28084834
Financial Statement
Total other comprehensive
-16329710-13172537-11755124-1417413-28084834
income
7.36 Surplus reserves
Unit: yuan
Item Beginning Balance Increase in this period Decrease in this period Ending Balance
Legal surplus reserves 342732000 342732000
Free surplus reserves
Reserve fund
Enterprise expansion
fund
Others
Total 342732000 342732000
127Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.37 Undistributed profit
Unit: yuan
Item This period Prior period
Undistributed profit at the end of prior period
90374375989232928370
before adjustment
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
90374375989232928370
after adjustment
Plus: Net profit for owner of the parent company 140515805 185597142
Minus: Drawn legal surplus
Drawn free surplus
Drawn common risk provision
Common dividend payable 164310032 268729560
Common dividend transferred to share
capital
Undistributed profit at the end of period 9013643371 9149795952
7.38 Operating income and operating cost
7.38.1 Details of operating income
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 1535630780 641722223 1434469813 579755809
Others businesses 37073973 12993176 36106364 13050449
Total 1572704753 654715399 1470576177 592806258
Including: Income from contracts 1569880471 652432942 1467719364 590459268
Income from house rents 2824282 2282457 2856813 2346990
7.38.2 Situation of income and cost from contracts
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
128Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Contract classification Operating income Operating cost
- Alcoholic beverage 1535630780 641722223
- Others 34249691 10710719
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 1569880471 652432942
7.39 Taxes and surcharges
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Consumption tax 70730210 58563215
City development tax 12001548 8879061
Education surcharges 8602508 6439043
Building tax 17347380 17414976
Land use tax 5018507 4925917
Vehicle and vessel use tax 13457 10536
Stamp duty 1481666 1437117
Others 256249 181575
Total 115451525 97851440
7.40 Selling expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Labor cost 126706728 119403300
Marketing expenses 165264594 130423949
Labor expenses 17428750 15252966
Depreciation expenses 31272848 30786813
Storage expenses 11813394 11354031
Advertisement expenses 37780989 29798339
Trademark use fee 6470914 5451141
Travel expenses 13046687 12906974
Design & production expenses 5937874 4921771
Conference expenses 3467275 3000702
Water electricity and gas charges 5352813 5414402
Others 34167070 33436428
Total 458709936 402150816
129Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.41 Management expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Labor cost 27880794 28938791
Depreciation expenses 46504022 49771088
Contracting expenses 2007300 2007300
Repair expenses 2528735 2342841
Office expenses 11108550 11028310
Amortization expenses 7980721 7922805
Afforestation fees 6749041 6736148
Safe production costs 1704862 2553903
Business entertainment expenses 1066264 1375182
Public security & clean-keeping expenses 3366899 3333559
Travel expenses 803896 972756
Others 9674602 9665276
Total 121375686 126647959
7.42 R&D expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
R&D expenses 9923137 9071966
Total 9923137 9071966
7.43 Financial expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Interest expenditure 8320670 5528569
Minus: Interest income 8050884 5914026
Plus: Commission charges 397357 514469
Exchange gain or loss 10803525 -14776944
Total 11470668 -14647932
7.44 Other income
Unit: yuan
130Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Source of other income Amount incurred in this period Amount incurred in prior period
Industrial development supporting funds 2050000 2050000
Xinjiang industrial revitalization and 711000 711000
technological transformation project
Subsidy for retaining wall 622571 569000
Other – related to assets 210270 293247
Special funds for supporting corporate 4334100
development
Talent development fund 860000
Regional sales incentive fund 4110000
Special funds for commercial and trade 4250000
development
Other – related to income 510470 6331199
Total 8354311 19258546
7.45 Investment income
Unit: yuan
Amount incurred in prior
Item Amount incurred in this period
period
Income from long-term equity investment by equity method -3299098 -3018088
Investment income from disposal of long-term equity
investment
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 investment during the
holding period
Interest income gained from other equity investments during
the holding period
Investment income gained from disposal of other equity
131Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Amount incurred in prior
Item Amount incurred in this period
period
investments
Total -3299098 -3018088
7.46 Loss on impairment of credit
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Loss on bad debts of accounts receivable -346172 1549058
Loss on bad debts of other receivable 1008715
Total 662543 1549058
7.47 Loss on impairment of assets
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Inventory falling price loss and loss on
2771951-2093965
impairment of contract execution cost
Total 2771951 -2093965
7.48 Income from asset disposal
Unit: yuan
Source of income from asset disposal Amount incurred in this period Amount incurred in prior period
Income from disposal of fixed assets 25845 361014
Total 25845 361014
7.49 Non-operating income
Unit: yuan
Amount included in the current
Item Amount incurred in this period Amount incurred in prior period
non-recurring profits/losses
Gains on exchange of
non-monetary assets
Grains on donations
Governmental subsidy
Gains on scrap of non-current 22743 23894 22743
132Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Amount included in the current
Item Amount incurred in this period Amount incurred in prior period
non-recurring profits/losses
assets
Others 2676722 893739 2676722
Total 2699465 917633 2699465
7.50 Non-operating expenses
Unit: yuan
Amount incurred in this Amount incurred in Amount included in the current
Item
period prior period non-recurring profits/losses
Loss on exchange of non-monetary assets
Donation 20000
Loss on scrap of non-current assets 9622 26032 9622
Fine penalty and overdue fine 154720 520698 154720
Others 101286 22633 101286
Total 265628 589363 265628
7.51 Income tax expenses
7.51.1 List of income tax expenses
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Current income tax expenses 32378104 48268623
Deferred income tax expenses 36523169 33497152
Total 68901273 81765775
7.51.2 Adjustment process of accounting profit and income tax expenses
Unit: yuan
Item Amount incurred in this period
Total profit 212007791
Income tax expenses calculated according to the legal/applicable tax rate 53001948
Influence of different tax rates applicable to subsidiary 45132
Influence of income tax in the term before adjustment -1385806
Influence of nontaxable income
Influence of non-deductible costs expenses and losses 856535
Influence of deductible loss from use of unconfirmed deferred income tax -1076495
133Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Amount incurred in this period
assets in prior period
Influence of deductible temporary difference or deductible loss of
17459959
unconfirmed deferred income tax assets in this period
Income tax expense 68901273
7.52 Other comprehensive incomes
Refer to Note 7.35 for details.
7.53 Items of cash flow statement
7.53.1 Other cash received related to operating activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Governmental subsidy income 4760470 19205955
Interest income 7454029 4736095
Net amercement income 24629 91304
Others 5814621 9735484
Total 18053749 33768838
7.53.2 Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Selling expenses 177953254 201918055
Administrative expenses 28688003 31309835
Others 11465833 11493063
Total 218107090 244720953
7.53.3 Other cash paid related to financing activities
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Cash paid for repurchasing B shares 34873655 7150483
Cash paid for leasing 11228570 11087384
Total 46102225 18237867
134Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Changes in various liabilities arising from financing activities
Unit: yuan
Ending
Increase in this period Decrease in this period
Beginning Balance
Item
Balance Cash Non-cash Non-cash
Cash movement
movement movement movement
Short-term borrowings 240674788 212652932 200768497 8207159 244352064
Long term loans (including
long-term liabilities due within one 117827899 35164161 33436810 6701544 112853706
year)
Lease liabilities (including lease 29425681 42961075 11228570 61158186
liabilities due within one year)
Other payables - dividends payable 164698387 164310032 388355
Other payables - interest payable 7133634 7133634
Other payables - accounts payable 37880941 37880941
for repurchasing treasury shares
Other payables – repurchasing B 34873655 34873655
shares
Total 425809309 247817093 249666751 451751198 14908703 456633252
7.54 Supplementary information to cash flow statement
7.54.1 Supplementary information to cash flow statement
Unit: yuan
Supplementary materials Amount in this period Amount in prior period
1. Cash flows from operating activities calculated by -- --
adjusNtinetgpthroefintet profit: 143106518 191314730
Plus: Provision for impairment of assets -3434494 544907
Depreciation of fixed assets oil-and-gas assets 152274180 155214788
and productive biological assets
Depreciation of right-of-use assets 9398965 9436272
Amortization of intangible assets 8318339 8550554
Amortization of long-term deferred expenses 11102904 11085844
Losses on disposal of fixed assets intangible
-25845-361014
assets and other long-term assets (profit listed with “-”)
Losses on retirement of fixed assets (profit -13121 2138
listed withL“os-s”es)on fair value change (profit listed with
“-”) Financial costs (profit listed with “-”) 9085807 2812883
Investment losses (profit listed with “-”) 3299098 3018088
Decrease in deferred income tax assets 36840105 34008220
(increase listed with “-”)
135Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Supplementary materials Amount in this period Amount in prior period
Increase of deferred income tax liabilities -316936 -511068
(decrease lisDteedcrweaitshe “in -i”nv)entories (increase listed with 45148419 -57846816
“-”) Decrease in operating receivables (increase 160466438 141442102
listed with I“nc-r”eas)e in operating payable (decrease listed -157014484 -259290500
with “-”O)thers
Net cash flows from operating activities 418235893 239421128
2. Significant investment and financing activities not
involDvienbgt ctraasnhsdfeerproedsitinatnodawssiethtsdrawal:
Convertible corporate bond due within one year
Fixed assets under financing lease
3. Net changes of cash and cash equivalent:
Ending balance of cash 2017179106 1778740634
Minus: Beginning balance of cash 1839128089 1717727551
Plus: Ending balance of cash equivalent
Minus: Beginning balance of cash equivalent
Net increase amount of cash and cash equivalent 178051017 61013083
7.54.2 Composition of cash and cash equivalents
Unit: yuan
Item Ending Balance Beginning Balance
1. Cash 2017179106 1839128089
Including: Cash on hand 4468 18877
Bank deposits available for payment at any
20020482931839109212
time
Other monetary funds available for payment
15126345
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
20171791061839128089
of period
136Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
7.55 Monetary items of foreign currency
7.55.1 Monetary items of foreign currency
Item Ending balance at foreign Converted exchange rate Ending balance at RMB
Monetary capital 18123421
Including: USD 256605 6.8109 1747711
EUR 135837 7.7671 1055060
HKD 17507344 0.86855 15206004
CAD 23961.00 4.7847 114646
Accounts receivable 43562238
Including: USD 4726226 6.8109 32189853
EUR 167724 7.7671 1302729
GBP 241080 4.7847 1153495
CAD 989091 9.0145 8916161
Short-term borrowings 88541700
Including: USD 13000000 6.8109 88541700
EUR
HKD
----
7.55.2 The Company's overseas subsidiaries determine their functional currency based on the
currency in the main economic environment in which they operate. The functional currency of Atrio
and Francs Champs Participations SAS (“Farshang Holdings”) is Euro the functional currency of
Chile Indomita Wine Group is Chilean Peso and the functional currency of Australia Kilikanoon
Estate is Australian Dollar.
8. R&D expenditure
Item Amount incurred in this period Amount incurred in prior period
Employee compensation 2608406 2336948
Test and laboratory fees 906487 175737
Consulting fees 1101703 1546712
Consumption of materials 2253742 1188000
Others 3052799 3824569
Total 9923137 9071966
Including: Expensing research and development
99231379071966
expenses
137Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Capitalized research and development
expenses
9. Change of scope of consolidation
In the reporting period there was no change in the consolidation scope of the Group.
10. Equity in other entities
10.1 Equity in subsidiaries
10.1.1 Constitution of enterprise group
Principal Proportion of
Registered Registration Business Acquisition
Name of subsidiary business shareholding
capital place nature mode
location Direct Indirect
Acquired
from a
business
HACIENDA Y VINEDOS MARQUES
EUR2000000 Navarre Spain Navarre Spain Sales 90 combination
DELATRIOS.L. (“Atrio”)
under
non-common
control
Acquired by
INDOMITA WINE COMPANY CHILE
CLP31100000000 Santiago Chile Santiago Chile Sales 85 establishment
SpA.(“Indomita Chile”)
or investment
Acquired
from a
businessKilikanoon Estate Pty Ltd. (“Australia Adelaide AdelaideAUD6420000 Sales 99 combinationKilikanoon Estate”) Australia Australia
under
non-common
control
Acquired by
Beijing Changyu Sales and Distribution
RMB1000000 Beijing China Beijing China Sales 100 establishment
Co. Ltd. (“Beijing Sales”)
or investment
Acquired byYantai Kylin Packaging Co. Ltd. (“Kylin Yantai Yantai ManufacturingRMB15410000 100 establishmentPackaging”) Shandong China Shandong China industry
or investment
Acquired by
Yantai Chateau Changyu-Castel Co. Ltd. Yantai Yantai Manufacturing
USD5000000 70 establishment
(“Chateau Changyu”) (a) Shandong China Shandong China industry
or investment
138Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Principal Proportion of
Registered Registration Business Acquisition
Name of subsidiary business shareholding
capital place nature mode
location Direct Indirect
Acquired by
Changyu (Jingyang) Wine Co. Ltd. Xianyang Xianyang Manufacturing
RMB1000000 90 10 establishment
(“Jingyang Wine”) Shaanxi China Shaanxi China industry
or investment
Acquired by
Yantai Changyu Pioneer Wine Sales Co. Yantai Yantai
RMB8000000 Sales 100 establishment
Ltd. (“Sales Company”) Shandong China Shandong China
or investment
Acquired by
Shanghai Changyu Sales and Distribution
RMB1000000 Shanghai China Shanghai China Sales 100 establishment
Co. Ltd. (“Shanghai Sales”)
or investment
Beijing Changyu AFIP Agriculture Acquired by
Miyun Beijing Miyun BeijingDevelopment Co. Ltd. ( “ Agriculture RMB1000000 Sales 100 establishmentChina ChinaDevelopment”) or investment
Acquired by
Beijing Chateau Changyu AFIP Global Manufacturing
RMB642750000 Beijing China Beijing China 91.53 establishment
Co. Ltd. (“AFIP”) (b) industry
or investment
Acquired by
Yantai Changyu Wine Sales Co. Ltd. Yantai Yantai
RMB5000000 Sales 90 10 establishment
(“Wines Sales”) Shandong China Shandong China
or investment
Acquired by
Yantai Changyu Pioneer International Yantai Yantai
RMB5000000 Sales 70 30 establishment
Co. Ltd. (“Pioneer International”) Shandong China Shandong China
or investment
Acquired by
Hangzhou Changyu Wine Sales Co. Ltd. Hangzhou Hangzhou
RMB 500000 Sales 100 establishment
(“Hangzhou Changyu”) Zhejiang China Zhejiang China
or investment
Acquired by
Ningxia Changyu Grape Growing Co. Yinchuan
RMB1000000 Ningxia China Plantation 100 establishment
Ltd. (“Ningxia Growing”) Ningxia China
or investment
Acquired by
Huanren Changyu National Wines Sales Benxi Liaoning Benxi Liaoning
RMB2000000 Sales 100 establishment
Co. Ltd. (“National Wines”) China China
or investment
Acquired by
Liaoning Changyu Golden Icewine Valley Benxi Liaoning Benxi Liaoning Manufacturing
RMB64687300 100 establishment
Co. Ltd. (“Golden Icewine Valley”) China China industry
or investment
Yantai Development Zone Changyu Acquired by
Yantai YantaiTrading Co. Ltd. (“Development Zone RMB5000000 Sales 100 establishmentShandong China Shandong ChinaTrading”) or investmentBeijing AFIP Meeting Center (“Meeting RMB 500000 Miyun Beijing Miyun Beijing Services 100 Acquired by
139Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Principal Proportion of
Registered Registration Business shareholding AcquisitionName of subsidiary business
capital place nature mode
location Direct IndirectCenter”) China China establishment
or investment
Acquired by
Beijing AFIP Tourism and Culture Miyun Beijing Miyun Beijing
RMB 500000 Tourism 100 establishment
(“AFIP Tourism”) China China
or investment
Acquired by
Changyu (Ningxia) Wine Co. Ltd. Manufacturing
RMB1000000 Ningxia China Ningxia China 100 establishment
(“Ningxia Wine”) industry
or investment
Acquired by
Yantai Changyu Chateau Tinlot Co. Ltd. Yantai Yantai Wholesale and
RMB400000000 65 35 establishment
(“Chateau Tinlot”) Shandong China Shandong China retail
or investment
Acquired by
Xinjiang Chateau Changyu Baron Balboa Shihezi Shihezi Manufacturing
RMB550000000 100 establishment
Co. Ltd. (“Chateau Shihezi”) Xinjiang China Xinjiang China industry
or investment
Acquired by
Ningxia Chateau Changyu Longyu Estate Yinchuan Yinchuan Manufacturing
RMB2000000 100 establishment
Co. Ltd. (“Chateau Ningxia”) Ningxia China Ningxia China industry
or investment
Shaanxi Changyu Chateau Longue Acquired by
Xianyang Xianyang ManufacturingChanson Co. Ltd. (“Chateau Longue RMB20000000 100 establishmentShaanxi China Shaanxi China industryChanson”) or investment
Yantai Changyu Wine Research Acquired by
Yantai Yantai Manufacturing
Development and Manufacturing Co. RMB805000000 100 establishment
Shandong China Shandong China industry
Ltd. (“R&D Company”) or investment
Acquired by
Xinjiang Changyu Wine Sales Co. Ltd. Shihezi Shihezi
RMB10000000 Sales 100 establishment
(“Xinjiang Sales”) Xinjiang China Xinjiang China
or investment
Acquired by
Ningxia Changyu Trading Co. Ltd. Yinchuan Yinchuan
RMB1000000 Sales 100 establishment
(“Ningxia Trading”) Ningxia China Ningxia China
or investment
Shaanxi Changyu Longue Chanson Acquired by
Xianyang XianyangWine Sales Co. Ltd. (“ Longue Chanson RMB3000000 Sales 100 establishmentShaanxi China Shaanxi ChinaSales”) or investment
Acquired by
Penglai Changyu Wine Sales Co. Ltd. Penglai Penglai
RMB5000000 Sales 100 establishment
(“Penglai Wine”) Shandong China Shandong China
or investment
Laizhou Changyu Wine Sales Co. Ltd. Laizhou Laizhou Acquired by
RMB1000000 Sales 100
(“Laizhou Sales”) Shandong China Shandong China establishment
140Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Principal Proportion of
Registered Registration Business Acquisition
Name of subsidiary business shareholding
capital place nature mode
location Direct Indirect
or investment
Acquired by
FrancsChampsParticipationsSAS Investment
EUR32000000 Bordeaux France Bordeaux France 100 establishment
(“Francs Champs”) and trading
or investment
Acquired by
Yantai Roullet Fransac Wine Sales Co. Yantai Yantai
RMB1000000 Sales 100 establishment
Ltd. (“Yantai Roullet Fransac”) Shandong China Shandong China
or investment
Acquired by
Yantai Changyu Wine Sales Co. Ltd. Yantai Yantai
RMB5000000 Sales 100 establishment
(“Wine Sales Company”) Shandong China Shandong China
or investment
Shaanxi Chateau Changyu Longue Acquired by
Xianxin Shaanxi Xianxin ShaanxiChanson Tourism Co. Ltd. (“Chateau RMB1000000 Tourism 100 establishmentChina ChinaLongue Chanson”) or investment
Acquired by
Longkou Changyu Wine Sales Co. Ltd. Yantai Yantai
RMB1000000 Sales 100 establishment
(“Longkou Sales”) Shandong China Shandong China
or investment
Yantai Changyu Cultural Tourism Acquired by
Yantai YantaiDevelopment Co. Ltd. ( “ Changyu RMB10000000 Tourism 100 establishmentShandong China Shandong ChinaCultural Tourism Company”) or investment
Acquired by
Yantai Changyu Wine Culture Museum Yantai Yantai
RMB 500000 Tourism 100 establishment
Co. Ltd. (“Museum”) Shandong China Shandong China
or investment
Acquired by
Yantai Changyu Cultural Tourism Product Yantai Yantai
RMB5000000 Tourism 100 establishment
Sales Co. Ltd. (“Cultural Sales”) Shandong China Shandong China
or investment
Yantai Changyu Window of International Acquired by
Yantai YantaiWine City Co. Ltd. (“Window of Wine RMB60000000 Tourism 100 establishmentShandong China Shandong ChinaCity”) or investment
Acquired by
Yantai Chateau Koya Brandy Co. Ltd. Yantai Yantai Manufacturing
RMB10000000 100 establishment
(“Chateau Koya”) Shandong China Shandong China industry
or investment
Changyu (Shanghai) International Digital Acquired by
Hongkou HongkouMarketing Center Co. Ltd. ( “ Digital RMB50000000 Sales 100 establishmentShanghai China Shanghai ChinaMarketing”) or investment
141Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Principal Proportion of
Registered Registration Business
Name of subsidiary business shareholding
Acquisition
capital place nature mode
location Direct Indirect
Shanghai Changyu Guoqu Digital Acquired by
Hongkou HongkouTechnology Co. Ltd. ( “ Shanghai RMB6000000 Sales 51 establishmentShanghai China Shanghai ChinaGuoqu”) or investment
Acquired by
Shanghai Changyu Yixin Digital Hongkou Hongkou
RMB10000000 Sales 51 establishment
Technology Co. Ltd. (“Shanghai Yixin”) Shanghai China Shanghai China
or investment
Acquired by
Yantai Christon Catering Co. Ltd. Yantai Yantai
RMB1000000 Services 100 establishment
(“Christon Catering”) Shandong China Shandong China
or investment
Weimeisi (Shanghai) Enterprise Acquired byDevelopment Co. Ltd. ( “ Weimeisi RMB10000000 Shanghai China Shanghai China Sales 100 establishmentShanghai”) or investment
Acquired by
Ningxia Longyu Food Trading Co. Ltd. Yinchuan Yinchuan
RMB 500000 Sales 100 establishment
(Longyu Trading) Ningxia China Ningxia China
or investment
Acquired by
Beijing Changyu Trading Co. Ltd. Miyun Beijing Miyun Beijing
RMB 500000 Sales 100 establishment
(“BeijingTrading”) China China
or investment
Huanren Manchu Autonomous County Acquired by
Benxi Liaoning Benxi LiaoningChangyu Wine Sales Co. Ltd. (“Huanren RMB2000000 Sales 100 establishmentChina ChinaSales”) or investment
Shanghai Changyu Yixin Yida Acquired by
Hongkou HongkouE-commerce Co. Ltd. (“Shanghai Yixin RMB 500000 Services 100 establishmentShanghai China Shanghai ChinaYida”) or investment
Explanation for difference between the proportion of shareholding and proportion of voting power
in the subsidiaries:
(a) Chateau Changyu is a Sino-foreign joint venture established by the Group and a foreign
investor accounting for 70% of Changyu Chateau's equity interest. Through agreement
arrangement the Group has the full power to control Changyu Chateau's strategic operating
investing and financing policies. The agreement arrangement will be terminated on December
312027.
(b) AFIP is a limited liability company jointly established by the Group and Yantai De'an
Investment Co. Ltd. and Beijing Qinglang Ecological Agriculture Technology Development
Co. Ltd. The Group holds 91.53% of its equity. Through agreement arrangement the Group
142Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
has the full power to control AFIP's strategic operating investing and financing policies. The
agreement arrangement will be terminated on September 2 2027.
10.1.2 Important non-wholly-owned subsidiaries
Unit: yuan
Other
Profit/loss Dividend declared
Shareholding comprehensive
attributable to to be distributed Balance of minority
proportion of income attributable
Name of subsidiary minority to minority equity at the end of
minority to minority
shareholders in this shareholders in period
shareholders shareholders in this
period this period
period
AFIP 8.47% 56409393
Indomita Chile 15% -612475 -745914 56431050
Explanation for difference between the proportion of shareholding and proportion of voting power
of the minority shareholders in the subsidiaries: See details in Note 10.1.1.
143Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
10.1.3 Main financial information of important non-wholly-owned subsidiaries
Unit: yuan
Ending Balance Beginning Balance
Name of subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
AFIP 261019767 345824399 606844166 14713051 3648980 18362031 264880703 354205457 619086160 19136401 3645340 22781741
Indomita Chile 206849623 308969971 515819594 123586692 8468264 132054956 239483768 306248010 545731778 144442947 8468264 152911211
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Name of subsidiary Operating Total comprehensive Total comprehensive
Net profits Operating cash flow Operating income Net profits Operating cash flow
income income income
AFIP 29693513 -7822284 -7822284 16061546 41907720 -610475.00 -610475.00 1061336
Indomita Chile 70363515 -4083170 -9055929 5350197 78447574 1891672 6001476 1874075
144Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
10.2 Equity in joint ventures or associates
Summary financial information of unimportant joint ventures and associates
Unit: yuan
Ending balance / amount incurred Beginning balance / amount incurred
in this period in prior period
Joint ventures: -- --
Total book value of investment 21672719 24933742
Total of the following items calculated --
according to the shareholding ratio
-- Net profit -3261023 -2545542
-- Other comprehensive income
-- Total comprehensive income -3261023 -2545542
Associates: --
Total book value of investment 1684380 1722455
Total of the following items calculated
according to the shareholding ratio
-- Net profit -38075 -472546
-- Other comprehensive income
-- Total comprehensive income -38075 -472546
11. Risks related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in the
normal course of the Group's operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
The following mainly presents information about the Group's exposure to each of the above
risks and their sources their changes during the year and the Group's objectives policies and
processes for measuring and managing risks and their changes during the year.The Group aims to seek appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Group's financial performance. Based on such objectives the Group's risk
management policies are established to identify and analyze the risks faced by the Group to
145Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group's activities.
11.1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group's credit risk is primarily
attributable to cash at bank receivables debt investments and derivative financial instruments
entered into for hedging purposes. Exposure to these credit risks are monitored by management
on an ongoing basis.The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.As on June 30 2026 the Group's maximum exposure to credit risk which will cause a
financial loss to the Group due to failure to discharge an obligation by the counterparties.In order to minimize the credit risk the Group has adopted a policy to ensure that all sales
customers have good credit records. According to the policy of the Group credit review is
required for clients who require credit transactions. In addition the Group continuously
monitors the balance of account receivable to ensure there's no 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 recognized and creditworthy third parties there is no
requirement for collateral. Concentrations of credit risk are managed by customer/counterparty
by geographical region and by industry sector. As on June 30 2026 18.1% of the Group trade
receivables are due from top five customers (December 31 2025: 37.5%). There is no
collateral or other credit enhancement on the balance of the trade receivables of the Group.
11.2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations 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 realizable marketable
securities and adequate committed lines of funding from major financial institutions to meet its
liquidity requirements in the short and longer term.
146Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
11.3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk respectively. The Group determines the
appropriate weightings of the fixed and floating rate interest-bearing instruments based on the
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure.
(1) As on June 30 2026 the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
Unit: yuan
June 30 2026 December 31 2025
Item
Effective interest rate Amount Effective interest rate Amount
Financial assets
- Monetary capital 1.15%-1.85% 60650000 1.30% - 2.25% 45650000
Financial liabilities ? ?
- Short-term loans 5.30% - 5.55% -88541700 5.34% - 5.85% -92510252
- Long-term loans (including the
portion due within one year) 3.98% -10285100 2.80% - 4.65% -4259657
- Lease liabilities (including the
portion due within one year) 4.65% -61158186 4.65% -29425681
Total -99334986 4.65% -80545590
Variable rate instruments:
Unit: yuan
June 30 2026 December 31 2025
Item
Effective interest rate Amount Effective interest rate Amount
Financial assets
- Monetary capital 0.05% - 0.55% 2022563833 0.01% - 0.55% 1843219212
Financial liabilities
- Short-term loans 1-year LRP-0.89% -50000000 1-year LPR - 0.89% -50000000
- Short-term loans BBSW+1.5% -8283492 BBSW + 1.5% -13364220
- Short-term loans 2.75% - 3.65% -97526872 2.20% - 3.90% -84800316
- Long-term loans (including the
portion due within one year) 3.15%-5.83%? -102568606 3.10% - 5.83% -113568242
Total 1764184863 1581486434
(2) Sensitivity analysis
147Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
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 on June 30 2026 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 484461 yuan (2025: RMB 981498 yuan) and net profit by RMB 484461
yuan (2025: RMB 981498 yuan).The sensitivity analysis above indicates the instantaneous change in the net profit and equity
that would arise assuming that the change in interest rates had occurred at the balance sheet
date and had been applied to re-measure those financial instruments held by the Group which
expose the Group to fair value interest rate risk at the balance sheet date. In respect of the
exposure to cash flow interest rate risk arising from floating rate non-derivative instruments
held by the Group at the balance sheet date the impact on the net profit and equity is estimated
as an annualized impact on interest expense or income of such a change in interest rates.
11.4 Foreign currency risk
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 2026 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 2026 December 31 2025
Item
Balance at foreign Balance at RMB Balance at foreign Balance at RMB
Monetary capital 18123421 873531 6189815
- USD 256605 1747711 832131 5848885
- EUR 135837 1055060 41398 340929
- HKD 17507344 15206004 2 1
- CAD 23961 114646
Short-term borrowings 88541700 92510252
- USD 13000000 88541700 13125000 92510252
(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 2026 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
148Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Item Equity Net profits
June 30 2026
USD 4339699 4339699
EUR -52753 -52753
HKD -760300 -760300
CAD -5732 -5732
Total 3520914 3520914
December 31 2025
USD 3253771 3253771
EUR -12543 -12543
HKD
Total 3241228 3241228
A 5% weakening of the Renminbi against the US dollar and Euro dollar at June 30 2026
would have had the equal but opposite effect to the amounts shown above on the basis that all
other variables remained constant.
12. Fair value disclosure
All financial assets and financial liabilities held by the Group are carried at amounts not
materially different from their fair value at June 30 2026.
13. Related parties and related transactions
13.1 Particulars of the parent company of the Company
Proportion of Proportion of voting
Name of parent shareholding of the powers of the parent
Registration place Business nature Registered capital
company parent company in company in the
the Company Company
Manufacturing
Changyu Group Yantai City 50000000 52.56% 52.56%
industry
From January to June 2026 there was no fluctuation in the registered capital of the parent
company and its share in equity interest and voting right.
13.2 Particulars of the subsidiaries of the Company
See particulars of the subsidiaries of the Company in Note 10.
13.3 Information about joint ventures and associates of the Company
Other joint ventures and associates that have related party transactions with the Group during
149Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
this period or that formed balance when having related party transactions with the Group
during the prior period are as follows:
Name of joint ventures and associates Relationship with the Company
L&M Holdings Joint venture of the GroupShanghai Yufeng Brand Management Co. Ltd. ( “ ShanghaiAssociates of the GroupYufeng”)
Yantai Guolong Wine Industry Co. Ltd. (“Yantai Guolong”) Associates of the Group
Taizhou Changyu Wine Sales Co. Ltd. (“Taizhou Changyu”) Associates of the Group
13.4 Particulars of other related parties
Relationship between other related parties and the
Name of other related parties
Company
Yantai God Horse Packing Co. Ltd. (“God Horse Packing”) A company controlled by the same parent company
Appointment of directors supervisors and senior
Yantai Zhongya Zhibao Pharmaceutical Co. Ltd. (“Zhongya Zhibao”)
executives of the Group
Societe Civile Argricole Du Chateau De Mirefleurs (“French Mirefleurs”) Subsidiaries of the joint venture
CHATEAU DE LIVERSAN (“LIVERSAN”) Subsidiaries of the joint venture
Yantai Changyu Wine Culture Museum Co. Ltd. (“Museum”) Non-profit organizations related to the Company
13.5 Related transactions
13.5.1 Related transactions of purchasing and selling goods and providing and receiving
services
List of purchasing goods/receiving services
Unit: yuan
Related parties Related transactions Amount incurred in this period Amount incurred in prior period
God Horse Packing Purchasing goods 23255290 27190017
Zhongya Zhibao Purchasing goods 12676 24837
French Mirefleurs Purchasing goods 3048363 8051588
Shanghai Yufeng Purchasing goods 154593 25442
List of selling goods/providing services
Unit: yuan
Amount incurred in this
Related parties Related transactions Amount incurred in prior period
period
150Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Amount incurred in this
Related parties Related transactions Amount incurred in prior period
period
Zhongya Zhibao Selling goods 2617658 2223769
God Horse Packing Selling goods 472 3008
Shanghai Yufeng Selling goods 1006025 344063
Taizhou Changyu Selling goods 5631827 8489159
The price of transactions between the Group and the related parties are based on the negotiated
price.
13.5.2 Related trusteeship/contracting and mandatory administration/outsourcing
Nil
13.5.3 Leasing with related parties
The Group as a lessor:
Unit: yuan
Rental income recognized in Rental income recognized in prior
Name of the lessee Type of leased assets
this period period
God Horse Packing Office building and plant 746275 746275
Zhongya Zhibao Office building 464220 481905
151Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
The Group as a lessee:
Unit: yuan
Rental expenses for
Variable lease payments not
short-term leases and leases
included in the measurement Interest expenses on Right-of-use assets
of low-value assets of Rent paid
of lease liabilities (if lease liabilities assumed increased
simplified treatment (if
applicable)
Name of the lessor Type of leased assets applicable)
Amount Amount Amount Amount
Amount Amount Amount Amount Amount Amount
incurred incurred in incurred incurred
incurred in incurred in incurred in incurred in incurred in incurred in
in this prior in prior in prior
prior period this period prior period this period this period this period
period period period period
Office building plant
Changyu Group 7480362 7480362 680841 185036
commercial building
152Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
13.5.4 Related guarantee
Nil
13.5.5 Inter-bank borrowing and lending of related parties
Nil
13.5.6 Asset transfer and debt recombination of related parties
Nil
13.5.7 Other related transactions
Unit: yuan
Related parties Amount incurred in this Amount incurred in prior
Item
period period
Changyu Group Trademark use fee 6470914 5451141
The price of transactions between the Group and the related parties are based on the
negotiated price.
13.6 Accounts receivable and payable of the related parties
13.6.1 Project receivable
Unit: yuan
Ending Balance Beginning Balance
Project name Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
Zhongya Zhibao 506000 1316
receivable
13.6.2 Project payable
Unit: yuan
Project name Related parties Ending book balance Beginning book balance
Accounts payable God Horse Packing 11200416 25095928
Accounts payable Zhongya Zhibao 1572709
Accounts payable Shanghai Yufeng 61365
Accounts payable French Mirefleurs 744426
Liabilities of contracts Taizhou Changyu 1817674
Liabilities of contracts Yantai Guolong 51696 51696
Liabilities of contracts God Horse Packing 11835 11835
Liabilities of contracts Changyu Group 41964 41964
Other payable Changyu Group 7992555 17082233
Other payable God Horse Packing 400000 400000
Other payable Yantai Guolong 50000
153Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Other payable Zhongya Zhibao 2960553
14. Share-based payment
14.1 Overall situation of share-based payment
According to the resolution of 2022 Annual General Meeting of Shareholders held by the
Group on May 26 2023 and the approved Proposal on 2023 Restricted Stock Incentive Plan
(Draft) of the Company and Its Abstract and Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors to Handle Matters Related to 2023
Restricted Stock Incentive Plan of the Company and the Proposal on Adjusting Relevant
Matters of 2023 Restricted Stock Incentive Plan and the Proposal on Granting Restricted
Stocks to Incentive Objects of 2023 Restricted Stock Incentive Plan which were reviewed and
approved at the first 2023 extraordinary board meeting held on June 26 2023 the Group has
determined June 26 2023 as the grant date to grant 6850000 restricted stocks to 204
incentive objects at a grant price of 15.24 yuan per stock. A total of 203 incentive objects in
this Group actually subscribed for 6785559 restricted stocks with a grant price of 15.24
yuan per stock. This transaction increased the registered capital by RMB 6785559 yuan and
increased the capital reserve by RMB 96626360 yuan.All restricted stocks granted to incentive objects are subject to different lock-up periods
which are 12 months 24 months and 36 months respectively from the completion of grant
registration of restricted stocks granted to incentive objects. The restricted stocks granted to
incentive objects under this incentive plan shall not be transferred used as collateral or used
to repay debts during the lock-up period. All restricted stocks granted to incentive objects will
be unlocked in three phases after 12 months from the grant date with unlocking ratios of
30% 30% and 40% for each phase. The corresponding unlocking dates are 1 year 2 years
and 3 years from the grant date. The actual unlocking quantity shall be linked to the annual
performance evaluation.When the performance of this Company meets corresponding conditions the unlocking ratio
of the above-mentioned restricted stocks for the current period is determined based on the
operating performance of the incentive object's unit and the value contribution of the
incentive object. If the unlocking conditions stipulated in this plan are not met the incentive
object shall not unlock restricted stocks in the current period and the Company shall
repurchase them according to the grant price to incentive object.The Group held its second 2024 Remuneration Committee meeting of the Board of Directors
its fourth 2024 extraordinary board meeting and its second 2024 extraordinary Supervisory
Committee meeting on July 22 2024. The meetings reviewed and approved the Proposal on
Achievement of the First Lifting of Lock-up Period and Lifting of Lock-up Conditions for
Company's 2023 Restricted Stock Incentive Plan and Proposal on the Repurchase and
Cancellation of Part of the Restricted Shares under the Company's 2023 Restricted Stock
Incentive Plan and Adjustment of the Repurchase Price. At the third extraordinary general
shareholders' meeting held on August 8 2024 the resolution on the Proposal on the
Repurchase and Cancellation of Part of the Restricted Shares under the Company's 2023
Restricted Stock Incentive Plan and Adjustment of the Repurchase Price was approved. A
total of 172 incentive recipients of the first tranche of restricted shares in 2024 have been
lifted from the lock-up conditions the number of restricted stocks that can be lifted is
154Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
1720495. The listing and circulation date of the restricted shares released from the lock-up
conditions is August 6 2024. This transaction resulted in a decrease in treasury shares of
RMB 26220343 yuan. A total of 425666 restricted shares were repurchased and cancelled
including 157790 shares repurchased and cancelled because the incentive recipients no
longer met the conditions of the Company's 2023 Restricted Stock Incentive Plan due to
resignation or position changes and 267876 shares repurchased and cancelled because they
could not be lifted from the first lock-up period due to personal performance assessment
results. This transaction led to a decrease in share capital of RMB 425666 yuan a decrease
in capital reserve of RMB 6061484 yuan and a decrease in treasury shares of RMB
6487150 yuan.
The Group held its third 2025 Remuneration Committee meeting its second meeting of the
tenth session of the Board of Directors and its first meeting of the ninth session of the
Supervisory Committee on July 25 2025. The meetings reviewed and approved the Proposal
on the Non-fulfillment of Conditions for the Second Release Tranche under the Company's
2023 Restricted Stock Incentive Plan and Proposal on the Repurchase and Cancellation of
Part of the Restricted Shares under the Company's 2023 Restricted Stock Incentive Plan and
Adjustment of the Repurchase Price. At the first extraordinary general shareholders' meeting
held on August 12 2025 the resolution on the Proposal on the Repurchase and Cancellation
of Part of the Restricted Shares under the Company's 2023 Restricted Stock Incentive Plan
and Adjustment of the Repurchase Price was approved. A total of 2153772 restricted shares
were repurchased and cancelled including 289467 shares repurchased and cancelled because
the incentive recipients no longer met the conditions of the Company's 2023 Restricted Stock
Incentive Plan due to resignation or position changes and 1864305 shares repurchased and
cancelled because they could not be lifted from the second lock-up period due to personal
performance assessment results. This transaction led to a decrease in share capital of RMB
2153772 yuan and a decrease in capital reserve of RMB 30669713 yuan for the Group of
year 2025.As of June 30 2026 the cumulative amount of equity-settled share-based payments
recognized in capital reserve amounted to RMB 26719287 yuan.
14.2 Equity-settled share-based payments
Unit: yuan
Method for determining the fair value of equity instruments on
Restricted stock: stock price on grant date minus grant price
grant date
Basis for determining the number of exercisable equity
Management's best estimate
instruments
Reasons for significant differences between the current
estimate and the prior estimate
Accumulated amount of equity-settled share-based payments 26719287
included in capital reserve
Total amount of expenses recognized as equity-settled
share-based payments in this period
155Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
15. Commitment and contingency
15.1 Significant commitment
Unit: yuan
Item Ending Balance Beginning Balance
Making long-term asset commitments 14939200 29302000
15.2 Contingency
As of the balance sheet date the Group didn't have any contingency to be disclosed.
16. Matters after balance sheet
16.1 Important non-adjusting events
The Group held its fourth 2026 Remuneration Committee meeting and its fifth 2026
extraordinary board meeting on July 26 2026. The meetings approved the Proposal on the
Non-fulfillment of Conditions for the Third Release Tranche under the Company's 2023
Restricted Stock Incentive Plan and Proposal on the Repurchase and Cancellation of Part of
the Restricted Shares under the Company's 2023 Restricted Stock Incentive Plan and
Adjustment of the Repurchase Price. At the second extraordinary general shareholders'
meeting held on August 12 2026 the Proposal on the Repurchase and Cancellation of Part
of the Restricted Shares under the Company's 2023 Restricted Stock Incentive Plan and
Adjustment of the Repurchase Price was approved. As the conditions for the third lock-up
period under the Company's 2023 Restricted Stock Incentive Plan were not satisfied the
relevant granted restricted shares are required to be repurchased and cancelled. A total of
2485626 restricted shares are required to be repurchased and cancelled due to the failure to
meet the performance assessment requirements at a repurchase price of RMB 14.62 yuan per
share. The total repurchase consideration payable by the Company for this repurchase of
restricted shares is RMB 36346800 yuan. Upon completion of this repurchase and
cancellation the total number of issued shares of the Company will be reduced from
657240128 shares to 654754502 shares. Upon completion of this repurchase and
cancellation there will be no change to the Company's controlling shareholders or actual
controller.
17. Other important matters
Nil
18. Notes on major items in financial statements of the parent company
18.1 Accounts receivable
18.1.1 Disclosed by age
Unit: yuan
Age Ending Balance Beginning Balance
156Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Within 1 year (including 1 year) 517000
1-2 years
2-3 years
Over 3 years
Total 517000
18.1.2 Disclosed by classification of bad debt provision methods
Unit: yuan
Ending Balance Beginning Balance
Type Book balance
Provision for bad Book balance Provision for baddebts Book debts Book
value value
Amount Proportion Amount Accruedproportion Amount Proportion Amount
Accrued
proportion
Accounts
receivable for
which provision for
bad debts is
accrued on a single
item basis
Accounts
receivable for
which provision for
bad debts is 517000 100% 1344 0.26% 515656
accrued on a
combined basis
Total 517000 100% 1344 0.26% 515656
Provision for bad debts accrued in this period:
Unit: yuan
Changes in this period
Type Beginningbalance Withdrawn or Ending BalanceAccrual transferred back Cancelled
Accounts receivable
for which provision for
bad debts is accrued on
a single item basis
Provision for bad debts
is accrued on a 1344 1344
combined basis
Total 1344 1344
18.1.3 Accounts receivable actually cancelled after verification in this period
Nil
157Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
18.1.4 Accounts receivable and contract assets collected by borrower of top 5 units
ranked by ending balance
Unit: yuan
Ending balance of
Percentage in total
Ending balance of bad debts
Ending balance of ending balance of
Ending balance of accounts provision and
Unit Name accounts accounts
contract assets receivable and provision for
receivable receivable and
contract assets impairment of
contract assets
contract assets
Zhongya Zhibao 506000 506000 97.9% 1316
Tianji 11000 11000 2.1% 28
Total 517000 517000 100% 1344
18.1.5 Accounts receivable derecognized due to transfer of financial assets
Nil
18.1.6 Accounts receivable transferred and included in assets and liabilities
Nil
18.2 Other receivables
Unit: yuan
Item Ending Balance Beginning Balance
Interests receivable
Dividends receivable 3495195 20000000
Other receivables 531106606 686617690
Total 534601801 706617690
18.2.1 Dividends receivable
Unit: yuan
Item (or the invested unit) Ending Balance Beginning Balance
Dividends receivable from subsidiaries 3495195 20000000
Total 3495195 20000000
18.2.2 Other receivables
18.2.2.1 Particulars of other receivables classified by nature
Unit: yuan
Nature Ending Balance Beginning Balance
Accounts receivable from subsidiaries 463264152 606611486
Others 75109063 88172813
158Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Nature Ending Balance Beginning Balance
Total 538373215 694784299
18.2.2.2 Disclosed by age
Unit: yuan
Age Ending Balance Beginning Balance
Within 1 year (including 1 year) 276174603 417489585
1-2 years 259393271 277192978
2-3 years 2703605
Over 3 years 101736 101736
Total 538373215 694784299
18.2.2.3 Provision for bad debts accrued withdrawn or transferred back in this period
Changes in this period
Beginning
Type Withdrawn or Transfer back Ending BalanceBalance Accrual transferred Others
or write-off
back
Individual 8166609 -900000 7266609
accrual
Total 8166609 -900000 7266609
The provision for bad debts accrued in this period was RMB -900000 yuan; and that
withdrawn or transferred back in this period was RMB 0 yuan.
18.2.2.4 Other accounts receivable actually cancelled after verification in this period
Nil
18.2.2.5 Other accounts receivable collected by borrower of top 5 units ranked by
ending balance
Unit: yuan
Percentage in total Ending balance of
Unit Name Nature Ending Balance Age ending balance ofother accounts provision for bad
receivable debts
Accounts receivable
Sales company 267018392 Within 1 year 49.6%
from subsidiaries
Accounts receivable
Atrio Group 136294427
Within 1 year and 1-2 25.3%
from subsidiaries years
Laizhou Zhuqiao Town Compensation
People's Government receivable from the
Laizhou Yidao Town 72666088 1-2 years 13.5% 7266609disposal of
People's Government vineyards
Accounts receivable Within 1 year and 1-2
Kilikanoon Estate 52972215 9.8%
from subsidiaries years
159Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Percentage in total Ending balance of
Unit Name Nature Ending Balance Age ending balance ofother accounts provision for bad
receivable debts
Yantai Municipal Finance Housing 2703605 2-3 years 0.5%
Bureau maintenance fund
Total 531654727 98.7% 7266609
18.2.2.6 Accounts receivable related to governmental subsidy
Nil
18.2.2.7 Other accounts receivable derecognized due to transfer of financial assets
Nil
18.2.2.8 Other accounts receivable transferred and included in assets and liabilities
Nil
18.3 Long-term equity investment
Unit: yuan
Ending Balance Beginning Balance
Item
Book balance Depreciation Book value Book balance Depreciation Book value
reserves reserves
Investment in subsidiaries 7737521508 97669546 7639851962 7737521508 97669546 7639851962
Investment in associated
enterprises and joint
Total 7737521508 97669546 7639851962 7737521508 97669546 7639851962
18.3.1 Investment in subsidiaries
Unit: yuan
Beginning Movements during the period EndingBeginning Ending balance of
Investee balance (book balance of Increase Decrease Accrualprovision for balance (book provisionvalue) provision for Othersimpairment in capital in capital value) forimpairment impairment
Kylin Packaging 23553931 23553931
Changyu Chateau 29281772 29281772
Pioneer International 4464714 4464714
Ningxia Growing 36573247 36573247
National Wine 2000000 2000000
Icewine Valley 85638472 85638472
AFIP 588648215 588648215
160Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
Movements during the period Ending
Beginning Beginning Ending balance of
Investee balance (book balance of Accrual
value) provision for
Increase Decrease balance (book provisionprovision for Others
impairment in capital in capital value) forimpairment impairment
Sales Company 18952112 18952112
Wine Sales 5109166 5109166
Shanghai Marketing 1000000 1000000
Beijing Sales 850000 850000
Jingyang Wine 900000 900000
Ningxia Wine 222309388 222309388
Ningxia Chateau 453760284 453760284
Chateau Tinlot 212039586 212039586
Shihezi Chateau 812311899 812311899
Longue Chanson 754824973 49380957 754824973 49380957
Chateau
R&D Company 3290268550 3290268550
Wine Sales 5105130 5105130
Company
Francs Champs 236025404 236025404
Atrio Group 221916810 11225459 221916810 11225459
Indomita Chile 274248114 274248114
Kilikanoon Estate 94096047 37063130 94096047 37063130
Australia
Digital marketing 50191439 50191439
Chateau Koya 110337503 110337503
Shanghai Weimeisi 7910985 7910985
Changyu Cultural 92649560 92649560
Tourism Company
Development Zone 837605 837605
Trading
Penglai Wine 831612 831612
Industry
Longkou Sales 1611286 1611286
Laizhou Sales 87342 87342
Yantai Roullet 251196 251196
Fransac
Museum 265162 265162
Window of Wine 470134 470134
City
AFIP Tourism 162952 162952
Meeting Center 102210 102210
Ningxia Trading 162952 162952
Christon Catering 102210 102210
Total 7639851962 97669546 7639851962 97669546
161Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
18.4 Operating income and operating cost
18.4.1 Details of operating income
Unit: yuan
Amount incurred in this period Amount incurred in prior period
Item
Income Cost Income Cost
Main business 155254347 137104339 160834485 143910902
Others businesses 1220972 1126695 1760482 1355077
Total 156475319 138231034 162594967 145265979
Including: Income from
contracts 155254347 137104339 160834485 143910902
Income from house
rents 1220972 1126695 1760482 1355077
18.4.2 Situation of income and cost from contracts
Unit: yuan
Contract classification Operating income Operating cost
Type of merchandise
- Alcoholic beverage 155254347 137104339
- Others
Classified by the time of merchandise transfer
- Revenue recognized at a point in time 155254347 137104339
18.5 Investment income
Unit: yuan
Item Amount incurred in this period Amount incurred in prior period
Income from long-term equity investment by cost method 173495195 46246053
Income from long-term equity investment by equity
method
Investment income from disposal of long-term equity
investment
Investment income of the financial assets measured at
their fair values and the variation of which is recorded
into the current profits and losses during the holding
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 173495195 46246053
162Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
19. Supplementary materials
19.1 List of non-recurrent profits/losses in this period
Unit: yuan
Item Amount Remark
Profits/losses on disposal of non-current assets 38966
Governmental subsidy included in the current profits/losses (excluding those closely related to
the enterprise business and enjoyed in accordance with the unified standard quota or ration of 8354311
the state)
Profits/losses on changes of fair value of financial assets and financial liabilities of
non-financial business and profits/losses from disposal of financial assets and financial
liabilities excluding effective hedging operations relevant to the normal business of the
Company
Payment for use of funds by non-financial enterprises included in the current profits/losses
Profits/losses on entrusting other people to make investment or manage assets
Profits/losses on external entrusted loans
Asset impairment provision accrued due to force majeure such as natural disaster
Transfer-back of accounts receivable provision for impairment with single impairment test
Income obtained when the investment cost obtained by the enterprise from subsidiaries
joint-run business and joint venture is less than the fair value of the net identifiable assets
obtained from the invested units when the investment is made
Current net profits/losses on subsidiaries acquired from a business combination under common
control from the beginning to the consolidation date
Profits/losses on exchange of non-monetary assets
Profits/losses on debt restructuring
One-time expenses incurred by enterprises due to the discontinuation of related business
activities such as expenses for resettling employees etc
Influence of the one-time adjustment of the current profits/losses in accordance with tax and
accounting laws and regulations on the current profits/losses
One-time confirmation of share-based payment expenses due to cancellation or modification of
equity incentive plan
For cash-settled share-based payment profits/losses arising from changes in fair value of
employee compensation payable after the exercise date
Profits/losses on fair value changes of investment real estate with fair value mode for follow-up
measurement
Profits generated from transactions with unfair transaction price
Profits/losses on contingencies irrelated to the normal business of the Company
Trustee fee income from entrusted operation
Other non-operating income and expenditure besides the above items 2420717
Other profits/losses conforming to the definition of non-recurrent profits/losses
Minus: Influenced amount of income tax 2592122
Influenced amount of minority equity 664846
Total 7557026 --
19.2 Return on net assets and earnings per share
Profit in reporting period Weighted average Earnings per share
163Yantai Changyu Pioneer Wine Co. Ltd. 2026 Semi-annual Report
return on net assetsBasic EPS (yuan/Share) Diluted EPS(yuan/Share)）
Net profit attributable to common shareholders of the
Company 1.35% 0.21 0.21
Net profit attributable to common shareholders of the
Company deducting non-recurrent profits/losses 1.28% 0.20 0.20
19.3 Accounting data difference under domestic and foreign accounting standard
19.3.1 Net profits & net assets difference disclosed in the financial report according to
the international accounting standard and Chinese accounting standard
Unit: yuan
Net profits Net assets
Amount incurred in Amount incurred in
this period prior period Ending Balance Beginning Balance
In accordance with the
Chinese accounting 140515805 185597142 10276824571 10347247577
standard
Item & amount adjusted in accordance with the international accounting standard:
In accordance with the
international accounting 140515805 185597142 10276824571 10347247577
standard
Yantai Changyu PioneerWine Co. Ltd.Board of Directors
August 21 2026
164
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