Yantai Changyu Pioneer Wine Co. Ltd.2016 First Quarter Report_News_News Center

Yantai Changyu Pioneer Wine Co. Ltd.2016 First Quarter Report

Date:2016-05-06 From: Print Font size：LargeMediumSmall

Yantai Changyu Pioneer Wine Co. Ltd.

2016 First Quarter Report

2016-Final 02

April 2016

I. ImportantNotice

The board of directors，the board of supervisors，directors, supervisors& senior managers of the Company collectively andindividually accept full responsibility for the truthfulness，accuracy and completeness ofthe information contained in this report and confirm that to the best of theirknowledge and belief there are no unfaithful facts, significant omissions ormisleading statements.

All directors attended the meeting fordeliberating this quarter report, and no directors make an objection statementto this report.

Mr. Sun Liqiang (Chairman of theCompany), Mr. Leng Bin (Chief Financial Officer) and Mr. Jiang Jianxun(Financial Director) assure the truthfulness, accuracy and completeness of thefinancial report in the annual report.

II、Key financial data andshareholders changing

1. Key financial data

Whether the Company makes retroactiveadjustments or restates the accounting data of previous fiscal years.

□ Yes V No

Item	The report period	The same period of last year	More or less than last year(%)
Business income (CNY)	1,882,230,620	1,825,212,207	3.12%
Net profit attributed to the shareholders of the listed company (CNY)	542,806,719	530,248,397	2.37%
Net profit attributed to the shareholders of the listed company after deducting the irregular profit and loss (CNY)	538,762,161	526,745,613	2.28%
Net cash flows from the operating activities (CNY)	605,256,456	697,396,327	-13.21%
Basic earnings per share (CNY)	0.79	0.77	2.60%
Diluted earnings per share (CNY)	0.79	0.77	2.60%
Weighted average for earning rate of the net assets	6.93%	7.46%	-0.53%
	The end of the report period	The end of last year	More or less than last year(%)
Total assets (CNY)	11,101,253,043	10,344,211,461	7.32%
Net Assets attributed to the shareholders of the listed company (CNY)	8,117,587,279	7,564,099,003	7.32%

Details ofirregular profit and loss

V Yes□ No

Unit：CNY

Item	From beginning of year to end of report period	Explanation
Gain on disposal of non-current assets, including the reversal of accrued impairment provision	72,728
Government grants credited in profit and loss (except for those recurring government grants that are closely related to the entity's operation, in line with related regulations and have proper basis of calculation)	3,887,501
Other non-operating income and expenses	1,095,395
Less: Income tax effect	1,011,066
Total	4,044,558	--

The reasons shall be madeclear and definitely as to the irregular profit and loss that the Company hasdefined by virtue of theExplanatory Announcement on Public Company’s Information Disclosure No.1 -Irregular Profit and Loss and as to regarding the irregular profit and loss as recurrent profit and loss asspecified in the Explanatory Announcement on Public Company’s InformationDisclosure No.1 - Irregular Profit and Loss.

□Available V Not available

There is nosituation regarding thenon-recurring profit and loss as defined and specified in the ExplanatoryAnnouncement on Public Company’s Information Disclosure No.1 - Non-recurringProfit and Loss as recurrent profit and loss.

2. The total number of shareholders and top10 shareholders at the end of the report period

1) The number of the common shareholders andpreferred shareholders with recovered voting power as well as the shareholdingof top 10 shareholders

Unit: share

Total number of common shareholders at the end of report period			36502		Total number of preferred shareholders with recovered voting power at the end of report period						0
The top 10 common shareholders
Name of Shareholders	Character of shareholders			Percentage (%)			Shares held		Number of restricted shares			Pledged or frozen
												Share status	Amount
YANTAI CHANGYU GROUP COMPANY LIMITED	Domestic non-state-owned legal person			50.40%			345,473,856		0
GAOLING FUND,L.P.	Foreign legal person			3.11%			21,300,919		0
CHINA SECURITIES FINANCE CORP	State-owned legal person			2.33%			15,997,455		0
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD	Foreign legal person			2.27%			15,576,126		0
GREENWOODS CHINA ALPHA MASTER FUND	Foreign legal person			1.47%			10,082,711		0
GOLDEN CHINA MASTER FUND	Foreign legal person			1.08%			7,389,916		0
NORGES BANK	Foreign legal person			0.96%			6,584,748		0
GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED	Foreign legal person			0.78%			5,317,307		0
CENTRAL HUIJIN ASSET MANAGEMENT LTD.	State-owned legal person			0.69%			4,761,200		0
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND	Foreign legal person			0.55%			3,788,487		0
The top 10 common shareholders with unrestricted shares
Name of Shareholders						Number of unrestricted shares held		Type of share
								Type of share		Amount
YANTAI CHANGYU GROUP COMPANY LIMITED						345,473,856		A share		345,473,856
GAOLING FUND,L.P.						21,300,919		B share		21,300,919
CHINA SECURITIES FINANCE CORP						15,997,455		A share		15,997,455
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD						15,576,126		B share		15,576,126
GREENWOODS CHINA ALPHA MASTER FUND						10,082,711		B share		10,082,711
GOLDEN CHINA MASTER FUND						7,389,916		B share		7,389,916
NORGES BANK						6,584,748		B share		6,584,748
GUOTAI JUNAN SECURITIES (HONGKONG) LIMITED						5,317,307		B share		5,317,307
CENTRAL HUIJIN ASSET MANAGEMENT LTD.						4,761,200		A share		4,761,200
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND						3,788,487		B share		3,788,487
The explanation for the associated relationship and accordant action of the top 10 shareholders		Among the top 10 shareholders, Yantai Changyu Group Company Limited has no associated relationship or accordant action relationship with the other 9 listed shareholders, and the relationship among the other shareholders is unknown.
Explanation for the top 10 common shareholders who involved in financing activities and stock trading business(if any)		No

Whether or not the Company’s top 10 commonshareholders and top 10 common shareholders with unrestricted shares promise tobuy back trading during the report period

□ Yes √ No

There is no top 10 common shareholders andtop 10 common shareholders with unrestricted shares in the Company promise tobuy back trading during the report period.

2) The total number of the preferred shareholdersand top 10 preferred shareholders at the end of the report period

□Available V Not available

III Major Issue

1. The Great Change and Reasons on Main Accountant Data and FinancialIndex

√Available □Not available

Compared the endof the report period with the beginning of the report period, monetary capitalincreases by 55.27%, mainly due to the increased returned sales money; notesreceivable increases by 202.81%, mainly due to the growth on bank acceptances; accountreceivables increases by 27.44%, mainly due to the expansion of Company’sdirect-selling business and increase of clients’ sales amount on credit; inventorydecreases by 23.84%, mainly due that the sales of products result in the reduceof inventory and materials; notes payable decreases by 35.07%, mainly due thatthe notes payable amount is paid during the report period; accounts payabledecreases by 39.21%, mainly due that the accounts payable amount is paid duringthe report period; advance receipt increases by 39.6%, mainly due to increasedadvance order amount from clients.

Compared with the same period of lastyear, the financial expense increases by 174.7%, mainly due to the increasedinterest expenditure of bank loan and the reduced interest income of bank loan;the cash for purchasing commodities and accepting service payment increases by70.43%, mainly due to the payment of previous purchase amount of materials aswell as the staff’s remuneration; the subtotal of cash outflow in financingactivities increases by 1814.92%, mainly due to increased cash for repayingdebt; net amount of cash flow in financing activities increases by 5220.62%,mainly due to increased cash from loan.

2. Analysis explanation of the major issue’s process, its influence andthe solution

□Available V Not available

3. The commitments that the Company, shareholders, actual controllers, purchasers,directors, supervisors, senior executives or other related parties completeperforming during the report period and don’t complete up to the end of reportperiod

√available □not available

Commitments	Commitment Party	Commitment Type	Commitment content	Commitment time	Commitment period	Implementation
Commitments at share reform	-		－
Commitments made in acquisition report or equity changes report	-		-		-	-
Commitments at asset restructuring	-		-		-	-
Commitments at the initial public offering or refinancing	Yantai Changyu Group Co., Ltd	Solve horizontal competition	Non-horizontal competition	1997.05.18	Permanent	Has been performed
Commitments at the initial public offering or refinancing	Yantai Changyu Group Co., Ltd	Clear the purpose of brand royalty	According to "Trademark License Contract", the Company will pay trademark royalty for the "Changyu"products of Yantai Changyu Group Co., Ltd every year, Yantai Changyu Group Co., Ltd will use trademark to advertise Changyu trademarks and the Contract products.	1997.05.18	Permanent	Has been performed
Equity incentive commitments
Commitments made to the minority shareholders of the Company	-		-		-	-
Commitment under timely implementation or not	Yes
For commitments that exceed the time limit and are not completed, specific reasons of not completing the implementation and the next step	No

4. Forecast on the operating performance in the period from January to June of 2016

Warning and explanation for the estimation onthe possible loss of cumulative net profit in the period from the beginning ofthis year to the end of the next report period or the great change comparing withsame period of last year.

□Available V Not available

5. The situation of security investment

□Available V Not available

There is nosecurity investment during the report period.

6. The situation of derivative investment

□Available V Not available

There is no derivativeinvestment during the report period.

7. Theactivities registration form of receptions, communication and interviewetc. during the report period

□Available V Not available

There is no activitiesof receptions, communication and interview etc. during the report period.

8.Thesituation of illegal external guarantee

□Available V Not available

There is no illegalexternal guarantee during the report period.

9. Thesituation of non-operating fund occupation of controlling shareholders andrelated parties

□Available V Not available

There is no non-operatingfund occupation of controlling shareholders and related parties during thereport period.

Ⅳ Financial Statements

1、Financial statements

1)、Consolidated balance sheet

Yantai Changyu Pioneer Wine Co. Ltd. 　　　　　　2016.03.31　　　　　　 Unit: CNY

Item	At 31 March 2016	At 31 December 2015
Current assets：
Monetary fund	1,995,815,223	1,285,362,414
Financial assets which are measured by fair value and which changes are recorded in current profit and loss
Derivative financial liability
Notes receivable	345,165,151	113,988,122
Account receivable	252,068,992	197,795,091
Advance money	2,827,464	3,591,098
Interest receivable	9,308,401	8,019,338
Dividend receivable
Other account receivable	40,775,106	46,146,487
Inventories	1,721,974,673	2,260,852,964
Assets held for sale
Non-current assets due within one year
Other current assets	38,722,148	48,449,551
Total current assets	4,406,657,158	3,964,205,065

Non-current assets：
Financial assets for sale	344,637	402,814
Investment held to expiration
Long-term account receivable
Long-term equity investment
Real estate for investment
fixed assets	3,073,332,738	3,089,245,185
Construction in progress	2,359,779,470	2,005,990,308
Project material
Liquidation of fixed assets
Biological assets for production	204,042,233	192,198,283
Oil and gas assets
Intangible assets	460,644,051	463,899,916
Development expenditure
Goodwill	124,857,479	105,504,426
Long-term deferred expenses	178,553,851	175,124,167
Assets of deferred income tax	275,903,680	302,406,656
Other non-current assets	17,137,746	45,234,641
Total non-current assets	6,694,595,885	6,380,006,396

Total assets	11,101,253,043	10,344,211,461
Current liabilities:
Short-term loan	676,506,575	665,581,921
Financial liabilities which are measured by fair value and which changes are recorded in current profit and loss
Derivative financial liability
Notes payable	18,830,000	29,000,000
Accounts payable	346,048,607	569,278,368
Advance money	327,453,292	234,566,504
Wage payable	158,304,383	190,239,451
Tax payable	15,982,078	41,285,107
Interest payable	1,000,865	977,304
dividend payable
Deferred income	11,181,873	11,241,873
Other accounts payable	608,359,943	509,226,395
Liabilities held for sale
Non-current liabilities due within one year	158,089,650	156,335,647
Other current liabilities
Total current liabilities	2,321,757,266	2,407,732,570
Non-current liabilities：
Long-term loan	74,976,921	71,686,629
Bond payable
Including: preferred stock
Perpetual capital securities
Long-term accounts payable	285,000,000
Long-term wages payable
Special accounts payable
Deferred income	70,232,145	69,836,411
Liabilities of deferred income tax	33,666,605	34,350,349
Other non-current liabilities	4,047,476	4,047,476
Total non-current liabilities	467,923,147	179,920,865
Total liabilities	2,789,680,413	2,587,653,435

Shareholder rights and interests：
Share capital	685,464,000	685,464,000
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve	565,955,441	565,955,441
Less: Inventory shares
Other comprehensive Income	239,045	-10,442,512
Reasonable reserve
Surplus reserve	342,732,000	342,732,000
Provision of general risk
Retained profit	6,523,196,793	5,980,390,074
Total owner’s equity attributable to parent Company	8,117,587,279	7,564,099,003
Minority interests	193,985,351	192,459,023
Total owner's equity	8,311,572,630	7,756,558,026

Total liabilities and owner's equity	11,101,253,043	10,344,211,461

Legal representative: Sun Liqiang Person in charge of accounting : Leng Bin Person in charge of accounting organ:Jiang Jianxun

2)、Balancesheet of parent company

Yantai Changyu Pioneer Wine Co. Ltd. 　　　　　　　　　　　　　　　　　　　　　 Unit: CNY

Item	At 31 March 2016	At 31 December 2015
Current assets：
Monetary fund	475,587,330	280,818,833
Financial assets which are measured by fair value and which changes are recorded in current profit and loss
Derivative financial liability
Notes receivable	154,299,349	38,429,319
Account receivable	0	2,392,870
Advance money	518,811	445,619
Interest receivable	9,308,401	8,019,338
Dividend receivable	0	788,092,349
Other account receivable	5,761,780,316	5,734,456,129
Inventories	658,219,597	728,173,107
Assets held for sale
Non-current assets due within one year
Other current assets	17,610,141	22,700,317
Total current assets	7,077,323,945	7,603,527,881

Non-current assets：
Financial assets for sale
Investment held to expiration
Long-term account receivable
Long-term equity investment	1,423,725,152	1,423,725,152
Real estate for investment	0	0
fixed assets	364,683,698	369,506,014
Construction in progress	7,722,287	7,990,777
Project material
Liquidation of fixed assets
Biological assets for production	119,393,508	110,961,189
Oil and gas assets
Intangible assets	73,786,737	74,381,525
Development expenditure
Goodwill
Long-term deferred expenses
Assets of deferred income tax	31,004,994	37,938,692
Other non-current assets
Total non-current assets	2,020,316,376	2,024,503,349

Total assets	9,097,640,321	9,628,031,230
Current liabilities:
Short-term loan	600,742,615	601,297,447
Financial liabilities which are measured by fair value and which changes are recorded in current profit and loss
Derivative financial liability
Notes payable
Accounts payable	177,475,015	273,091,182
Advance money	0	0
Wage payable	62,736,080	71,058,615
Tax payable	9,732,973	19,331,311
Interest payable	1,000,865	977,304
Deferred income	1,767,054	1,767,054
dividend payable
Other accounts payable	61,852,045	994,821,281
Liabilities held for sale	0	0
Non-current liabilities due within one year	126,661,600	127,345,600
Other current liabilities
Total current liabilities	1,041,968,247	2,089,689,794
Non-current liabilities：
Long-term loan	58,649,600	56,761,600
Bond payable
Including: preferred stock
Perpetual capital securities
Long-term accounts payable
Long-term wages payable
Special accounts payable
Deferred income	21,378,190	21,824,352
Liabilities of deferred income tax
Other non-current liabilities	1,944,955	1,944,955
Total non-current liabilities	81,972,745	80,530,907
Total liabilities	1,123,940,992	2,170,220,701

Shareholder rights and interests：
Share capital	685,464,000	685,464,000
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve	557,222,454	557,222,454
Less: Inventory shares
Other comprehensive Income
Reasonable reserve
Surplus reserve	342,732,000	342,732,000
Provision of general risk
Retained profit	6,388,280,875	5,872,392,075
Total owner’s equity attributable to parent Company
Minority interests
Total owner's equity	7,973,699,329	7,457,810,529

Total liabilities and owner's equity	9,097,640,321	9,628,031,230

Legal representative: Sun Liqiang Personin charge of accounting : Leng Bin Person in charge ofaccounting organ: Jiang Jianxun

3)、Consolidated profit statement

Yantai ChangyuPioneer Wine Co.Ltd. Unit:CNY

Item	Three months ended 31 Mar 2016	Three months ended 31 Mar 2015
1. Total business income	1,882,230,620	1,825,212,207
Including : Business income	1,882,230,620	1,825,212,207
2. Total business cost	1,167,560,487	1,126,739,273
Including：Business cost	605,388,600	602,400,431
Business tax and associate charges	97,663,734	90,171,910
Sales expenses	390,313,786	378,802,990
Management expenses	69,048,398	62,252,665
Financial expenses	5,145,969	-6,888,723
Assets depreciation loss
Add: fair value charge profit (loss is listed with "-")
Investment profit (loss is listed with "-")
Including: investment profit for joint-run business and joint venture
3. Operating profit (loss is listed with "-")	714,670,133	698,472,934
Add: Non-operating income	5,214,481	4,486,099
Including: Disposal earnings of non-current asset	94,567	0
Less: non-operating expenditures	158,857	12,706
Including: non-current assets disposing loss	21,839	0
4. Total profit (loss is listed with "-")	719,725,757	702,946,327
Less: income tax expenses	176,813,048	172,697,930
5. Net profit (net loss is listed with "-")	542,912,709	530,248,397
Net profit of parent company's owners	542,806,719	530,248,397
Minority shareholder profit and loss	105,990	0
6. Net after-tax of other comprehensive income	11,045,624	-5,490,622
Net after-tax of other comprehensive income attributable to owners of parent company	10,681,557	-5,490,622
(I) Other comprehensive income items which will not be reclassified subsequently to profit of loss
1). Changes as a result of re-measurement of net defined benefit plan liability or asset
2). Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss
(II) Other comprehensive income items which will be reclassified subsequently to profit or loss	10,681,557	-5,490,622
1). Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss
2). Gains or losses arising from changes in fair value of available-for-sale financial assets
3). Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets
4). The effect hedging portion of gains or losses arising from cash flow hedging instruments
5). Translation differences arising on translation of foreign currency financial statements	10,681,557	-5,490,622
6). Other
Net after-tax of other comprehensive income attributable to minority shareholders	364,067
7. Total comprehensive income	553,958,333	524,757,775
Total comprehensive income attributable to owners of parent Company	553,488,276	524,757,775
Total comprehensive income attributable to minority shareholders	470,057
8. Earnings per share:
(i) Basic earnings per share	0.79	0.77
(ii) Diluted earnings per share	0.79	0.77

During this report period, the issue relatesto company consolidation under common control, consolidated party completes netprofit amount of CNY 0 before being consolidated, and consolidated partycompletes net profit amount of CNY 0 in the same period of last year.

Legal representative: SunLiqiang Person in charge of accounting : LengBin Person in charge of accounting organ: Jiang Jianxun

4)、Profitstatement of parent company

Yantai ChangyuPioneer Wine Co.Ltd. Unit:CNY

Item	Three months ended 31 March 2015	Three months ended 31 March 2014
I.Sales Revenue	429,102,315	450,781,749
less：Cost of sales	323,773,053	349,541,377
Tax and levies on operations	47,351,215	48,892,624
Selling and distribution expenses
Management expenses	39,984,821	27,804,156
Finance expenses	6,317,441	-17,412,991
Impairment losses of Assets
Add：Gains on increase in fair value of assets
Investment income	506,737,526	6,770,286
Incl. Investment income from affiliates
II.Operating profit	518,413,311	48,726,869
Add：Non-operating income	562,752	1,578,100
Including: Disposal earnings of non-current asset	94,567
Less：Non-operating expenses	36,839
Incl. Losses from disposal of non-current assets	21,839
III.Total Profit	518,939,224	50,304,969
Less：Income tax	3,050,424	10,883,671
IV.Net profit	515,888,800	39,421,298
Net profit attributable to Parent company
Net profit attributable to Minority interest
V. Net after-tax of other comprehensive income
Net after-tax of other comprehensive income attributable to owners of parent company
(I) Other comprehensive income items which will not be reclassified subsequently to profit of loss
1. Changes as a result of re-measurement of net defined benefit plan liability or asset
2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss
(II) Other comprehensive income items which will be reclassified subsequently to profit or loss
1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss
2. Gains or losses arising from changes in fair value of available-for-sale financial assets
3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from cash flow hedging instruments
5. Translation differences arising on translation of foreign currency financial statements
6. Other
Net after-tax of other comprehensive income attributable to minority shareholders
VI. Total comprehensive income	515,888,800	39,421,298
Total comprehensive income attributable to owners of parent Company
Total comprehensive income attributable to minority shareholders
VII. Earnings per share:
(i) Basic earnings per share	0.75	0.06
(ii) Diluted earnings per share	0.75	0.06

Legal representative: SunLiqiang

Person in charge of accounting : LengBin Person in charge ofaccounting organ: Jiang Jianxun

5)、Consolidated cash flow statement

Yantai ChangyuPioneer Wine Co.Ltd. Unit:CNY

Item	Three months ended 31 March 2016	Three months ended 31 March 2015
1. Cash flows from operating activities:
Cash received from sales of goods and rending of services	1,852,141,728	1,808,838,404
Tax refund received	1,092,133
Other cash received related to operating activities	5,343,373	5,773,600
Subtotal of cash flows of operating activities	1,858,577,234	1,814,612,004
Cash paid for goods and services	444,239,863	260,654,494
Cash paid to and on behalf of employees	127,947,911	116,601,340
Cash paid for taxes and expenses	482,676,851	525,095,241
Other cash paid related to operating activities	198,456,153	214,864,602
Sub-total of cash outflows of operating activities	1,253,320,778	1,117,215,677
Net cash flow from operating activities	605,256,456	697,396,327
2. Cash flow from investing activities:
Cash received from return of investment
Fixed deposit with the term of over 3 months	6,000,000	4,795,537
Cash received from obtaining investment profit	21,433	156,135
Cash received from interest income
Net cash received from disposal of fixed assets, intangible assets and other long-term assets	231,240
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	6,252,673	4,951,672
Cash paid to acquire fixed assets, intangible assets and other long-term assets	172,593,131	257,537,234
Fixed deposit with the term of over 3 months	7,007,000
Cash for investment
Net cash paid to acquire branch and other business unit	760,824
Other cash paid related to investment activities

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